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Operator
Operator
Good day, ladies and gentlemen.
女士們,先生們,美好的一天。
Welcome to the ON Semiconductor Third Quarter 2018 Earnings Conference Call.
歡迎參加安森美半導體 2018 年第三季度收益電話會議。
(Operator Instructions) As a reminder, this call is being recorded.
(操作員說明)作為提醒,此通話正在錄音中。
I would now like to introduce your host for today's conference, Parag Agarwal, VP of Corporate Development and Investor Relations.
我現在想介紹一下今天會議的主持人,企業發展和投資者關係副總裁 Parag Agarwal。
Please go ahead, sir.
請繼續,先生。
Parag Agarwal - VP of IR
Parag Agarwal - VP of IR
Thank you, Chris.
謝謝你,克里斯。
Good morning, and thank you for joining ON Semiconductor Corporation's Third Quarter 2018 Quarterly Results Conference Call.
早上好,感謝您參加安森美半導體公司 2018 年第三季度季度業績電話會議。
I'm 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 2018, will be available on our website approximately 1 hour following this conference call and recorded broadcast will be available for approximately 30 days following this conference call.
本次廣播的重播以及我們 2018 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 additional information related to our end markets, business segments, geographies, channels and share count 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。
Reconciliations of these non-GAAP financial measures to most directly comparable measures under GAAP are in our earnings 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 risk 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 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 third quarter of 2018.
我們在 2018 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。
As announced earlier, we will host our 2019 Analyst Day on March 18 in Scottsdale, Arizona.
如前所述,我們將於 3 月 18 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。
Now let me turn it over to Bernard Gutmann, who will provide an overview of third quarter 2018 results.
現在讓我把它交給伯納德·古特曼,他將概述 2018 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。
We delivered yet another quarter of strong financial results.
我們又交付了一個季度強勁的財務業績。
Our results for the third quarter and guidance for the fourth quarter of 2018 have exceeded expectations on all key metrics.
我們第三季度的業績和 2018 年第四季度的指引在所有關鍵指標上都超出了預期。
The strong financial performance was driven by our multiple secular drivers in various end markets and by solid execution on the operational front.
強勁的財務業績是由我們在各個終端市場的多個長期驅動因素以及在運營方面的穩健執行推動的。
Our robust financial results over the last several quarters clearly demonstrate the strength of our business and our steadfast operational execution.
我們過去幾個季度強勁的財務業績清楚地表明了我們的業務實力和我們堅定的運營執行力。
Despite overhang of trade tensions, rising bond yields and fears of slowing global growth, overall demand environment remains favorable.
儘管存在貿易緊張局勢、債券收益率上升以及對全球增長放緩的擔憂,但總體需求環境仍然有利。
We have seen a few spots of some weakness, especially in greater China region in industrial and white goods segments.
我們已經看到一些弱點,特別是在大中華地區的工業和白色家電領域。
However, we have been able to offset this softness in Greater China with strength in other markets.
然而,我們已經能夠用其他市場的實力來抵消大中華區的這種疲軟。
Our near-to-midterm outlook for our business remains healthy, driven by significant increase in our content in automotive, industrial and cloud power solutions for data centers and 5G deployments.
由於我們在數據中心和 5G 部署的汽車、工業和雲電源解決方案方面的內容顯著增加,我們對業務的近中期前景保持健康。
Secular drivers powering our business remain intact, and our traction in our strategic markets, which include automotive, industrial and cloud power, continues to be strong.
為我們的業務提供動力的長期驅動力保持不變,我們在包括汽車、工業和雲計算在內的戰略市場的吸引力繼續保持強勁。
Although we're confident in our near-to-midterm outlook, we are managing our business in a very prudent manner.
儘管我們對近期至中期的前景充滿信心,但我們正在以非常謹慎的方式管理我們的業務。
Our channel inventory remains at the lower end of our target range of 11 to 13 weeks, and we have meaningfully reduced days of inventory on our balance sheet.
我們的渠道庫存仍處於 11 至 13 週目標範圍的下限,並且我們的資產負債表上的庫存天數顯著減少。
At the same time, we continue to invest in our operations, in our -- and in our R&D efforts to drive long-term growth in our key strategic markets and to improve our profitability.
與此同時,我們繼續投資於我們的運營、我們的研發工作,以推動我們關鍵戰略市場的長期增長並提高我們的盈利能力。
Now let me provide you details on our third quarter 2018 results.
現在讓我為您提供有關我們 2018 年第三季度業績的詳細信息。
Total revenue for the third quarter of 2018 was $1.542 billion, an increase of 11% as compared to revenues of $1.391 billion in the third quarter of 2017.
2018 年第三季度總收入為 15.42 億美元,比 2017 年第三季度的 13.91 億美元增長 11%。
GAAP net income for the third quarter was $0.38 per diluted share as compared to $0.25 per -- in the third quarter of 2017.
GAAP 第三季度的淨收益為每股攤薄收益 0.38 美元,而 2017 年第三季度的每股收益為 0.25 美元。
Non-GAAP net income for the third quarter was $0.57 per diluted share as compared to $0.44 in the third quarter of 2017.
第三季度非美國通用會計準則淨利潤為每股攤薄收益 0.57 美元,而 2017 年第三季度為 0.44 美元。
GAAP and non-GAAP gross margin for the third quarter was 38.7%.
第三季度的 GAAP 和非 GAAP 毛利率為 38.7%。
On a GAAP basis, our third quarter gross margin improved by 100 basis points year-over-year, and on a non-GAAP basis, gross margin improved by 80 basis points year-over-year.
在 GAAP 基礎上,我們第三季度的毛利率同比增長 100 個基點,在非 GAAP 基礎上,毛利率同比增長 80 個基點。
This strong gross margin performance was driven by solid operational execution and by improving mix resulting from higher contribution from our automotive, industrial and server businesses.
這種強勁的毛利率表現是由穩健的運營執行以及我們的汽車、工業和服務器業務的更高貢獻導致的組合改善所推動的。
On a year-over-year basis, third quarter 2018 gross margin was negatively impacted by the rise in certain input costs.
與去年同期相比,2018 年第三季度的毛利率受到某些投入成本上升的負面影響。
With the anticipated ramp in additional internal wafer capacity towards the end of this year, we expect to partially offset the impact of increased input costs.
隨著預計在今年年底增加內部晶圓產能,我們預計將部分抵消投入成本增加的影響。
Our GAAP operating margin for the third quarter of 2018 was 15.7% as compared to 12.7% in the third quarter of 2017.
我們 2018 年第三季度的 GAAP 營業利潤率為 15.7%,而 2017 年第三季度為 12.7%。
Our non-GAAP operating margin for the third quarter of 2018 was 17.8%, an increase of approximately 120 basis points over 16.6% in the third quarter of 2017.
我們 2018 年第三季度的非美國通用會計準則營業利潤率為 17.8%,比 2017 年第三季度的 16.6% 增加了約 120 個基點。
On a year-over-year revenue increase of 11% for the third quarter of 2018, our non-GAAP operating income increased by 19%.
在 2018 年第三季度收入同比增長 11% 的情況下,我們的非公認會計原則營業收入增長了 19%。
This strong operational performance demonstrates the leverage and strength of our operational model.
這種強勁的運營業績證明了我們運營模式的槓桿作用和實力。
GAAP operating expenses for the third quarter were $355 million as compared to $347 million for the third quarter of 2017.
第三季度的 GAAP 運營費用為 3.55 億美元,而 2017 年第三季度為 3.47 億美元。
Non-GAAP operating expenses for the third quarter were $322 million as compared to $296 million in the third quarter of 2017.
第三季度非美國通用會計準則運營費用為 3.22 億美元,而 2017 年第三季度為 2.96 億美元。
Third quarter free cash flow was $228 million, and operating cash flow was $358 million.
第三季度自由現金流為 2.28 億美元,經營現金流為 3.58 億美元。
Capital expenditures during the third quarter were 135 -- $130 million, which equates to capital intensity of 8.5%.
第三季度的資本支出為 135 - 1.3 億美元,相當於 8.5% 的資本密集度。
Recall that to meet increasing demand for our products and to mitigate the impact of the steep rise in prices of raw wafers, we expect a higher level of capital intensity for this year and next.
回想一下,為了滿足對我們產品不斷增長的需求並減輕原始晶圓價格急劇上漲的影響,我們預計今年和明年的資本密集度會更高。
We continue to delever our balance sheet, and in the third quarter, we used $65 million to pay down debt.
我們繼續去槓桿化我們的資產負債表,在第三季度,我們用了 6500 萬美元來償還債務。
We exited the third quarter of 2018 with cash and cash equivalents of $951 million as compared to $850 million at the end of the second quarter of 2018.
2018 年第三季度末,我們的現金和現金等價物為 9.51 億美元,而 2018 年第二季度末為 8.5 億美元。
We used $75 million of cash to repurchase 3.6 million shares of our stock in the third quarter.
我們在第三季度用 7500 萬美元現金回購了 360 萬股我們的股票。
At the end of the third quarter, days of inventory on hand were 116 days, down 6 days as compared to 122 days in the second quarter.
三季度末,庫存天數為116天,比二季度的122天減少6天。
Distribution inventory in terms of weeks declined quarter-over-quarter in the third quarter, and currently, distribution inventories are at the lower end of our target range of 11 to 13 weeks.
第三季度分銷庫存按週計算環比下降,目前,分銷庫存處於我們 11 至 13 週目標範圍的下限。
We expect distribution inventories to remain within the normal range of 11 to 13 weeks in the near term.
我們預計近期分銷庫存將保持在 11 至 13 週的正常範圍內。
To mitigate the risk of excessive inventory in the channel, we are proactively management -- managing inventory in the distribution channel.
為了降低渠道庫存過多的風險,我們積極管理——管理分銷渠道中的庫存。
We have implemented systems to ensure that distributors don't carry more inventory than what is needed to support 11 to 13 weeks of resales.
我們實施了一些系統,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。
Earlier in the fourth quarter, we announced the purchase of an incremental 20% share in -- of the joint -- of the manufacturing joint venture for an 8-inch wafer fab located in Aizu-Wakamatsu, Japan.
在第四季度早些時候,我們宣布購買位於日本會津若鬆的 8 英寸晶圓廠的製造合資企業 20% 的增量股份。
With this purchase, ON Semiconductor now owns 60% share in the joint venture, and consequently, we will report operational results of this joint venture in our consolidated financial statements beginning in the fourth quarter of 2018.
通過此次收購,安森美半導體現在擁有合資企業 60% 的股份,因此,我們將在 2018 年第四季度開始的合併財務報表中報告該合資企業的經營業績。
We have named the joint venture ON Semiconductor Aizu Co., Ltd., or OSA.
我們已將合資企業 ON Semiconductor Aizu Co., Ltd. 或 OSA 命名為。
As part of the joint venture agreement, we may provide manufacturing services to our joint venture partner for up to 6 quarters starting with the fourth quarter of 2018.
作為合資協議的一部分,從 2018 年第四季度開始,我們可以向我們的合資夥伴提供長達 6 個季度的製造服務。
We expect revenue from manufacturing services to be approximately $20 million per quarter at a nominal gross profit.
我們預計製造服務的收入約為每季度 2000 萬美元(按名義毛利計算)。
Now let me provide you an update on the performance of our business units, starting with 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 third quarter was $810 million.
PSG 第三季度的收入為 8.1 億美元。
Revenue for the Analog Solutions Group for the third quarter of 2018 was $532 million, and revenue for the Intelligent Sensing Group was $200 million.
模擬解決方案集團 2018 年第三季度的收入為 5.32 億美元,智能傳感集團的收入為 2 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。
Third quarter of 2018 was yet another strong quarter for ON Semiconductor.
2018 年第三季度是安森美半導體又一個強勁的季度。
We continued on our trajectory of delivering strong revenue growth and robust margin expansion.
我們繼續實現強勁的收入增長和強勁的利潤率擴張。
Overall demand for our products continues to be healthy despite concerns related to trade tensions, rising bond yields and expectations of slowing global growth.
儘管存在與貿易緊張局勢、債券收益率上升和全球增長放緩預期有關的擔憂,但對我們產品的總體需求仍然保持健康。
However, as Bernard noted earlier, we have seen a few spots of some weakness, especially in Greater China region in industrial and white goods segments.
然而,正如伯納德之前指出的那樣,我們看到了一些弱點,特別是在大中華地區的工業和白色家電領域。
The key driver of our business is significant content increase in many applications in automotive, industrial, cloud server and 5G infrastructure end markets as opposed to underlying unit growth in these end markets.
我們業務的主要驅動力是汽車、工業、雲服務器和 5G 基礎設施終端市場的許多應用的內容顯著增加,而不是這些終端市場的基礎單位增長。
In automotive end market, vehicle electrification and active safety are expected to drive steep growth in our addressable content for power devices and image sensors.
在汽車終端市場,汽車電氣化和主動安全預計將推動我們用於功率器件和圖像傳感器的可尋址內容的急劇增長。
In the industrial market, need for power efficiency in industrial systems is expected to drive many-fold increase in power products from our PSG business unit.
在工業市場,工業系統對電源效率的需求預計將推動我們 PSG 業務部門的電源產品成倍增長。
In the cloud server market, we continue to see solid growth for analog power management products from our ASG business unit.
在雲服務器市場,我們的 ASG 業務部門的模擬電源管理產品繼續穩健增長。
In 5G infrastructure market, we're seeing many-fold increase in our medium voltage power content as compared to that in 4G and 3G systems.
在 5G 基礎設施市場,與 4G 和 3G 系統相比,我們的中壓電力含量增加了許多倍。
Our business today is driven by sustainable secular growth drivers in the fastest-growing semiconductor end markets as opposed to being driven by macroeconomic conditions and semiconductor 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,而不是幾年前受宏觀經濟條件和半導體行業周期性的驅動。
Through our investments over the last several 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.
通過過去幾年我們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。
A significant part of our business comes from highly differentiated power, analog and sensor products for automotive, industrial and cloud power end markets.
我們業務的重要組成部分來自汽車、工業和雲電源終端市場的高度差異化電源、模擬和傳感器產品。
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。
Overall business conditions remain favorable, and demand continues to be healthy across most end markets.
整體商業狀況仍然有利,大多數終端市場的需求繼續保持健康。
We've noticed some weakness in Greater China region in industrial and white goods segments, but we've been able to offset that weakness with strength in other areas.
我們注意到大中華地區在工業和白色家電領域的一些疲軟,但我們已經能夠用其他領域的實力來抵消這種疲軟。
In fact, we continue to sign long-term supply agreements with our customers.
事實上,我們繼續與客戶簽訂長期供應協議。
On the supply side, we believe that inventories in semiconductor supply chain are generally healthy, and we do not see any signs of excess inventory with our distributors and customers.
在供應方面,我們認為半導體供應鏈的庫存總體上是健康的,我們沒有看到我們的分銷商和客戶有任何庫存過剩的跡象。
In fact, as Bernard indicated in his prepared remarks, our inventory at our distributors is towards the lower end of our target range of 11 to 13 weeks.
事實上,正如伯納德在他準備好的評論中指出的那樣,我們在分銷商的庫存接近我們 11 至 13 週目標範圍的下限。
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。
Along with our strong revenue performance, our execution on the operational front continues to be outstanding.
除了我們強勁的收入表現外,我們在運營方面的執行力仍然非常出色。
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 11% for the third quarter, our non-GAAP operating increase -- income increased by 19%.
正如伯納德之前提到的,在第三季度收入同比增長 11% 的情況下,我們的非 GAAP 運營增長——收入增長了 19%。
We achieved this solid margin performance in spite of significant rise in input costs.
儘管投入成本顯著上升,我們仍實現了穩健的利潤率表現。
We remain on track to ramp our internal raw wafer capacity by the end of the current year, and with this ramp, we should be able to partially offset the increase in input costs.
我們仍有望在今年年底前提高我們的內部原始晶圓產能,通過這一增長,我們應該能夠部分抵消投入成本的增加。
At the same time, mix shift towards margin-rich automotive, industrial and cloud power end markets should drive additional margin expansion.
與此同時,向利潤豐厚的汽車、工業和雲能源終端市場的混合轉變應會推動利潤率進一步擴大。
Now I'll provide details of the progress in our various end markets for the third quarter of 2018.
現在,我將詳細介紹 2018 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 $464 million and represented 30% of our revenue in the third quarter.
第三季度汽車市場的收入為 4.64 億美元,占我們第三季度收入的 30%。
Third quarter automotive revenue [grew] by an impressive 12% year-over-year.
第三季度汽車收入同比增長 12%,令人印象深刻。
Despite some volatility in the automotive supply chain, we posted strong year-over-year and sequential growth in the third quarter.
儘管汽車供應鏈出現了一些波動,但我們在第三季度實現了強勁的同比和環比增長。
We believe that ongoing content increases, new production introductions and share gains drove our strong revenue performance despite reports of volatility in global automotive supply chain.
我們認為,儘管有報導稱全球汽車供應鏈出現波動,但持續的內容增加、新產品引進和份額增長推動了我們強勁的收入表現。
We expect that secular trend of meaningful semiconductor content increase in automotive will continue for the foreseeable future, regardless of temporary changes in market dynamics.
我們預計,在可預見的未來,無論市場動態如何暫時變化,汽車領域半導體含量顯著增加的長期趨勢仍將持續。
With a strong portfolio of power, analog and sensor products, we are well positioned to disproportionately benefit from a tremendous increase in semiconductor content, driven by electrification, active safety and fuel efficiency in automotive.
憑藉強大的電源、模擬和傳感器產品組合,在汽車電氣化、主動安全和燃油效率的推動下,我們完全有能力從半導體含量的巨大增長中獲得不成比例的收益。
Our momentum in the automotive image sensors continues to accelerate.
我們在汽車圖像傳感器領域的發展勢頭繼續加快。
Key factors driving our growth in the automotive image sensor market are a significant technology lead over competition and the industry's most extensive product portfolio, giving customers more choices than before.
推動我們在汽車圖像傳感器市場增長的關鍵因素是顯著領先於競爭的技術和業界最廣泛的產品組合,為客戶提供比以往更多的選擇。
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。
Furthermore, with our recent acquisition of SensL, we now have capability to provide LiDAR sensors in addition to image sensors, radar and ultrasonic sensors.
此外,隨著我們最近收購 SensL,除了圖像傳感器、雷達和超聲波傳感器之外,我們現在還有能力提供 LiDAR 傳感器。
We're the only semiconductor supplier with capability to provide all 4 types of sensors for ADAS and autonomous driving.
我們是唯一一家能夠為 ADAS 和自動駕駛提供全部 4 種類型傳感器的半導體供應商。
We believe that this capability will not only drive significant content for us, but will also provide a key differentiating advantage to us as the automotive industry moves to sensor fusion architectures for ADAS and autonomous driving.
我們相信,隨著汽車行業轉向用於 ADAS 和自動駕駛的傳感器融合架構,這種能力不僅將為我們帶來重要的內容,而且還將為我們提供關鍵的差異化優勢。
We recorded our first silicon carbide revenue from automotive end markets in the third quarter.
我們在第三季度錄得第一筆來自汽車終端市場的碳化矽收入。
We're actively engaged with leading global automotive OEMs on many silicon carbide projects.
我們在許多碳化矽項目上積極與全球領先的汽車 OEM 合作。
We expect silicon carbide will be a significant driver of our automotive content increase, driven by the electrification of the drive train.
我們預計,在傳動系統電氣化的推動下,碳化矽將成為我們汽車含量增加的重要推動力。
We expect to see strong acceleration in our automotive silicon carbide revenues for the foreseeable future.
我們預計在可預見的未來,我們的汽車碳化矽收入將強勁增長。
Demand for our power products, 48-volt systems and LED lighting products remain strong.
對我們的電源產品、48 伏系統和 LED 照明產品的需求依然強勁。
We are also seeing strong adoption of switch mode power supply systems for camera systems and radar systems.
我們還看到攝像頭系統和雷達系統廣泛採用開關模式電源系統。
In addition, we're 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。
Revenue in the fourth quarter for the automotive end market is expected to be up quarter-over-quarter due to normal seasonality.
由於正常的季節性因素,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 $400 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 4 億美元的收入。
The industrial end market represented 26% of our revenue in the third quarter.
工業終端市場占我們第三季度收入的 26%。
Our third quarter industrial revenue grew by a solid 12% year-over-year.
我們第三季度的工業收入同比增長了 12%。
Ever-increasing energy efficiency requirements continue to be the key driver of increases in power management content in industrial systems.
不斷提高的能效要求仍然是工業系統中電源管理內容增加的主要驅動力。
We're seeing severalfold increase in our power content in many industrial systems.
我們看到許多工業系統中的功率含量增加了數倍。
In the industrial end market, we are benefiting from our comprehensive power product portfolio encompassing the complete voltage range.
在工業終端市場,我們受益於涵蓋完整電壓範圍的全面電源產品組合。
Design activity for power products in the industrial market remains strong, and we are engaging with leading global industrial OEMs on their next-generation designs.
工業市場中電源產品的設計活動依然強勁,我們正在與全球領先的工業 OEM 就其下一代設計進行合作。
Within the industrial market, we are seeing strong traction for our power integrated modules for applications in the alternative energy market.
在工業市場中,我們看到我們的電源集成模塊在替代能源市場中的應用具有強大的吸引力。
Machine vision is another area of strong growth in the industrial market.
機器視覺是工業市場另一個強勁增長的領域。
With recently introduced X-class image sensors, we expect to further strengthen our leadership in machine vision and robotics markets.
通過最近推出的 X 級圖像傳感器,我們希望進一步加強我們在機器視覺和機器人市場的領導地位。
Revenue in the fourth quarter for the industrial end market is expected to be down quarter-over-quarter as opposed to seasonality of flat sequential revenue.
預計第四季度工業終端市場的收入將環比下降,而不是季節性的連續收入持平。
Weaker-than-seasonal growth in our industrial business is driven primarily by softness in the Greater China market.
我們的工業業務增長低於季節性,主要是由於大中華市場疲軟。
The communications end market, which includes both networking and wireless, contributed revenue of $314 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 3.14 億美元的收入。
The communications end market represented 20% of our revenue in the third quarter.
通信終端市場占我們第三季度收入的 20%。
Third quarter communications revenue increased by 13% year-over-year.
第三季度通信收入同比增長 13%。
In the third quarter, we benefited from the launch of new smartphone models.
第三季度,我們受益於新智能手機型號的推出。
It has been the case over the last few years, our content in new-generation smartphones continues to increase in a meaningful manner.
過去幾年就是這樣,我們在新一代智能手機中的內容繼續以有意義的方式增加。
On the infrastructure front, we are beginning to see ramp of our high-efficiency medium-voltage power products for 5G systems.
在基礎設施方面,我們開始看到我們用於 5G 系統的高效中壓電源產品數量激增。
We expect that our power content in 5G infrastructure systems will be many times that in 4G or 3G systems.
我們預計我們在 5G 基礎設施系統中的功率含量將是 4G 或 3G 系統中的許多倍。
We have been designed in for significant power management content in 5G systems, and we expect to see strong revenue ramps with increased deployment of 5G infrastructure.
我們專為 5G 系統中的重要電源管理內容而設計,我們預計隨著 5G 基礎設施部署的增加,收入將出現強勁增長。
Revenue in the fourth quarter for the communications end market is expected to be flat quarter-over-quarter as opposed to normal seasonality of sequential decline.
預計第四季度通信終端市場的收入將與上一季度持平,而不是正常的季節性連續下降。
The computing end market contributed revenue of $163 million in the third quarter.
計算終端市場在第三季度貢獻了 1.63 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 16% year-over-year.
第三季度計算收入同比增長 16%。
The year-over-year growth was driven primarily by accelerating strength in our cloud power business and the ramp of our analog power management solutions for graphics processors.
同比增長主要是由於我們的雲電源業務實力增強以及我們的圖形處理器模擬電源管理解決方案的增長。
As we have indicated in prior earnings calls, we are engaged with leading cloud and server players and we are working with leading processor providers on their next-generation platforms.
正如我們在之前的財報電話會議中所表明的那樣,我們正在與領先的雲和服務器參與者合作,我們正在與領先的處理器供應商合作開發他們的下一代平台。
With the upcoming generation of processors, we expect to increase our analog content through the introduction of new products.
隨著下一代處理器的推出,我們希望通過推出新產品來增加我們的模擬內容。
Revenue in the fourth quarter for our computing end market is expected to be approximately flat quarter-over-quarter as opposed to normal seasonality of sequential decline.
我們的計算終端市場第四季度的收入預計將與季度環比大致持平,而不是正常的季節性連續下降。
Continuing ramp of our cloud power business is the primary driver of better-than-seasonal trend in our computing business.
我們的雲計算業務持續增長是我們計算業務好於季節性趨勢的主要驅動力。
The consumer end market contributed revenue of $200 million in the third quarter.
消費者終端市場在第三季度貢獻了 2 億美元的收入。
The consumer end market represented 13% of our revenue in the third quarter.
消費者終端市場占我們第三季度收入的 13%。
Third quarter 2018 consumer revenue was down 1% as compared to consumer revenue in the third quarter of 2017.
與 2017 年第三季度的消費者收入相比,2018 年第三季度的消費者收入下降了 1%。
The decline was due to our selective participation in certain areas of the consumer electronics market.
下降是由於我們選擇性地參與了消費電子市場的某些領域。
Revenue in the fourth quarter for the consumer end market is expected to be down quarter-over-quarter, primarily due to softness in white goods market and normal seasonality.
預計第四季度消費者終端市場的收入將環比下降,主要是由於白色家電市場疲軟和季節性正常。
In summary, the demand environment for our products remains healthy, driven by secular megatrends in industrial, automotive and cloud power markets.
總之,在工業、汽車和雲計算市場長期大趨勢的推動下,我們產品的需求環境仍然健康。
The key driver of our business is significant content increase in many applications in automotive, industrial, cloud server and 5G infrastructure end markets as opposed to underlying unit growth in these end markets.
我們業務的主要驅動力是汽車、工業、雲服務器和 5G 基礎設施終端市場的許多應用的內容顯著增加,而不是這些終端市場的基礎單位增長。
Trade tensions, rising bond yields and expectations of slowing global economy have not impacted our business in a significant manner.
貿易緊張局勢、債券收益率上升以及對全球經濟放緩的預期並未對我們的業務產生重大影響。
We have established leadership in highly differentiated power, analog and sensor semiconductor solutions, and we believe that customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive, industrial and cloud power end markets.
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建立了領先地位,我們相信客戶越來越依賴我們作為關鍵供應商,為汽車、工業和雲電源終端市場的新興和顛覆性應用提供支持技術。
While our business remains healthy, we're fully cognizant of the risks arising from a potential slowdown in the global economy.
儘管我們的業務保持健康,但我們充分認識到全球經濟可能放緩所帶來的風險。
We're very prudently managing our business with aggressive and proactive inventory management to respond quickly to any changes in market conditions.
我們通過積極主動的庫存管理非常謹慎地管理我們的業務,以快速響應市場條件的任何變化。
Our operational execution remains solid.
我們的運營執行依然穩健。
We have continued to expand our margins and generate strong free cash flow.
我們繼續擴大利潤率並產生強勁的自由現金流。
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。
Based on product booking trends, backlog levels and estimated turns levels, we anticipate that total ON Semiconductor revenue is expected to be in the range of $1.48 billion to $1.53 billion in the fourth 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的總收入預計在 2018 年第四季度將在 14.8 億美元至 15.3 億美元之間。
Included in our fourth quarter revenue guidance is approximately $20 million revenue from the manufacturing services provided by ON Semiconductor Aizu, or OSA, which as I indicated earlier, is our 8-inch -- is our joint venture in an 8-inch fab.
我們第四季度的收入指導中包括來自安森美半導體會津或 OSA 提供的製造服務的大約 2000 萬美元收入,正如我之前指出的,它是我們的 8 英寸 - 是我們在 8 英寸晶圓廠中的合資企業。
Excluding the impact of OSA, our fourth quarter revenue is expected to be in the range of $1.46 billion to $1.51 billion.
排除 OSA 的影響,我們第四季度的收入預計在 14.6 億美元至 15.1 億美元之間。
Recall that as part of the joint venture agreement, we may provide manufacturing services to our joint venture partner for up to 6 quarters starting with the fourth quarter of 2018.
回想一下,作為合資協議的一部分,我們可能會從 2018 年第四季度開始為我們的合資夥伴提供長達 6 個季度的製造服務。
For the fourth quarter of 2018, we expect gross margin to be in the range of 37.1% to 38.1%.
對於 2018 年第四季度,我們預計毛利率將在 37.1% 至 38.1% 之間。
Our fourth quarter gross margin guidance includes the negative impact of 50 basis points from the manufacturing provided -- services provided by OSA.
我們第四季度的毛利率指導包括來自 OSA 提供的製造服務的 50 個基點的負面影響。
Excluding the impact of OSA, our fourth quarter gross margin is expected to be in the range of 37.6% to 38.6%.
排除 OSA 的影響,我們第四季度的毛利率預計在 37.6% 至 38.6% 之間。
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 includes 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 in the fourth quarter.
我們預計第四季度非美國通用會計準則運營費用總額為 3.19 億美元至 3.33 億美元。
The quarter-over-quarter increase in our non-GAAP operating expenses in the fourth quarter is primarily driven by 3 additional days in the fourth quarter of 2018 as compared to those in the third quarter of 2018.
與 2018 年第三季度相比,2018 年第四季度我們的非公認會計原則運營費用的環比增長主要是由於 2018 年第四季度增加了 3 天。
We anticipate fourth quarter 2018 GAAP net 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 2018 年第四季度 GAAP 淨收入和費用(包括利息費用)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費用。
We anticipate our non-GAAP net other income and expense, including interest expense, will be $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 fourth quarter of 2018 is expected to be $8 million to $12 million.
2018 年第四季度為所得稅支付的現金預計為 800 萬至 1200 萬美元。
We expect total capital expenditures of $135 million to $145 million in the fourth quarter of 2018.
我們預計 2018 年第四季度的總資本支出為 1.35 億美元至 1.45 億美元。
We also expect share-based compensation of $19 million to $21 million in the fourth 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 年第四季度的股票薪酬為 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 diluted share count for the fourth quarter of 2018 is expected to be 428 million shares based on current stock price.
根據當前股價,我們 2018 年第四季度的稀釋後股票數量預計為 4.28 億股。
Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on 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 in the neighborhood of $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 and, Chris, please open up the lines for questions.
謝謝你,克里斯,請打開線路提問。
Operator
Operator
(Operator Instructions) And our first question comes from Chris Danely with Citigroup.
(操作員說明)我們的第一個問題來自花旗集團的 Chris Danely。
Christopher Brett Danely - MD
Christopher Brett Danely - MD
I remember in previous calls, you've talked about some extension in lead times.
我記得在之前的電話中,您談到了交貨時間的一些延長。
Can you just comment on what lead times are doing these days?
你能評論一下這些天的交貨時間嗎?
Are they remaining stretched or are they starting to come in?
他們是保持緊張還是開始進入?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
They haven't changed, so they're remaining longer than normal.
他們沒有改變,所以他們比正常保持更長的時間。
Christopher Brett Danely - MD
Christopher Brett Danely - MD
Keith, when do we expect those to come back in?
基思,我們希望那些人甚麼時候回來?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Obviously, depending on market conditions, that can vary.
顯然,根據市場情況,這可能會有所不同。
But at this stage, we see them remaining stable, at least through the first half of next year.
但在這個階段,我們看到它們保持穩定,至少到明年上半年。
Christopher Brett Danely - MD
Christopher Brett Danely - MD
Okay.
好的。
And then for my follow-up, on -- just on the OSA biz.
然後是我的後續行動,就在 OSA 業務上。
Were you contractually obligated to do this thing for 6 quarters?
您是否有合同義務在 6 個季度內做這件事?
Or maybe just give us some of the history behind that.
或者也許只是給我們一些背後的歷史。
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
We are, indeed, obligated.
我們確實有義務。
That was part of the original deal.
這是最初交易的一部分。
Operator
Operator
And our next question comes from Vivek Arya with 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
Keith, I'm sure you've looked at some of the weaker outlook from -- of the peers, the Texas Instruments and Cypress, et cetera.
基思,我相信你已經從同行中看到了一些較弱的前景,德州儀器和賽普拉斯等等。
What kind of went through your mind when you contrast their weakness versus the stability or strength that you're seeing?
當您將他們的弱點與您所看到的穩定性或力量進行對比時,您會想到什麼?
Is it possible you're not seeing the downturn now but perhaps could see it later just because either you have these products or you had longer lead times?
是否有可能您現在沒有看到經濟低迷,但也許只是因為您擁有這些產品或交貨時間較長而稍後會看到它?
If you could just give us a sense on -- of what's on your dashboard, right?
如果您可以讓我們了解一下儀表板上的內容,對嗎?
How are order cancellations looking?
訂單取消情況如何?
How is the book-to-bill ratio?
訂單出貨比如何?
Like how do we contrast this difference between what some of your peers are reporting versus the strength that you are seeing?
就像我們如何對比您的一些同行報告的內容與您所看到的實力之間的差異?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
So our forecasting is done the same way.
所以我們的預測也是以同樣的方式完成的。
We look at our backlog and profiles that are going on from customers and our new orders, et cetera, as we get into the quarter.
當我們進入本季度時,我們會查看來自客戶的積壓和配置文件以及我們的新訂單等。
If you want to talk about contrast, I will point to the fact that our power content, specifically in the markets I talked about, we believe to be substantial and different from many of our competitors, and that is indeed where most of the strength is.
如果您要談論對比,我會指出我們的實力內容,特別是在我談到的市場中,我們認為與我們的許多競爭對手有很大的不同,而這確實是我們最強大的地方.
So I think there's a little bit of product mix between companies that shows up and also which customers are being served.
因此,我認為出現的公司以及正在服務的客戶之間存在一些產品組合。
But in our case, we really do think it's strong demand on a content basis in the markets we mentioned.
但就我們而言,我們確實認為這是我們提到的市場對內容的強烈需求。
Vivek Arya - Director
Vivek Arya - Director
Got it.
知道了。
And for my follow-up, could you help us quantify your rough exposure to the two kind of problematic areas you mentioned, the China industrial and white goods?
對於我的後續行動,您能否幫助我們量化您對您提到的中國工業和白色家電這兩種問題領域的粗略接觸?
When do you think those areas can start to stabilize?
你認為這些領域什麼時候可以開始穩定?
Or we don't have that visibility quite yet.
或者我們還沒有那種可見性。
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
We don't have visibility on that quite yet.
我們對此還沒有了解。
We service the consumer piece -- or actually, maybe the white goods piece in China through distribution, and they are not giving us any indication of when that might come back at this stage.
我們為消費者提供服務——或者實際上,也許是通過分銷在中國的白色家電,他們沒有給我們任何跡象表明現階段什麼時候會恢復。
But it's a relatively small portion of our total business.
但這只是我們總業務的一小部分。
Operator
Operator
And our next question comes from Shawn Harrison with Longbow Research.
我們的下一個問題來自 Longbow Research 的 Shawn Harrison。
Gausia Fatima Chowdhury - Associate Analyst
Gausia Fatima Chowdhury - Associate Analyst
This is Gausia Chowdhury on behalf of Shawn.
我是代表 Shawn 的 Gausia Chowdhury。
Within auto, are you seeing any auto production weakness in any regions?
在汽車行業,您是否看到任何地區的汽車生產疲軟?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
We're not seeing any weakness.
我們沒有看到任何弱點。
We are seeing this year, unlike last year, some shutdowns for them to have kind of their maintenance periods that didn't occur last year.
與去年不同,我們今年看到了一些停工,以使他們擁有去年沒有的維護期。
But as I mentioned before, our content gains have far offset those.
但正如我之前提到的,我們的內容收益遠遠抵消了這些。
Gausia Fatima Chowdhury - Associate Analyst
Gausia Fatima Chowdhury - Associate Analyst
Okay.
好的。
And then with regards to OSA, do you anticipate that the profitability will -- that there will be a drag on profitability through 2019?
然後關於 OSA,您是否預計盈利能力會——到 2019 年會拖累盈利能力?
Any idea on the timing would be helpful.
關於時間的任何想法都會有所幫助。
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
So as we said in the prepared remarks, we may serve this for up to 6 quarters, i.e., through the first quarter of 2020.
因此,正如我們在準備好的評論中所說,我們最多可以服務 6 個季度,即到 2020 年第一季度。
And I expect a pretty stable business during that time frame.
而且我預計在那段時間裡會有一個相當穩定的業務。
Operator
Operator
And our next question comes from Ross Seymore with Deutsche Bank.
我們的下一個問題來自德意志銀行的羅斯·西莫爾。
Ross Clark Seymore - MD
Ross Clark Seymore - MD
Just want to follow up on the auto side.
只是想在汽車方面跟進。
Keith, I know you have more content there conceptually.
基思,我知道你在概念上有更多的內容。
Can you just talk a little bit -- or give a little more color as to how that's playing out?
你能稍微談談 - 或者多說一點關於它是如何發揮作用的嗎?
Historically, even the companies that, in aggregate, are gaining more content still aren't immune from SAAR pulling down.
從歷史上看,即使是總體上獲得更多內容的公司也不能倖免於 SAAR 的下滑。
So can -- any more color you can give on some of the specifics as far as why you're able to offset it, at least -- the long term, I get, but the near term color?
所以可以 - 你可以在一些細節上給出更多的顏色,就為什麼你能夠抵消它,至少 - 長期的,我知道,但近期的顏色?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
I mean, of course, you're never immune from slowdowns in unit production.
我的意思是,當然,你永遠不會免受單位生產放緩的影響。
But our new designs in the models that are now ramping, 2019 models, the content gains there are in the double-digit range.
但是我們現在正在加速的模型中的新設計,2019 年的模型,內容增益在兩位數範圍內。
And so therefore, if your SAAR comes down 1% or 2%, you still see strength coming on.
因此,如果您的 SAAR 下降 1% 或 2%,您仍然會看到強勁的勢頭。
And so the only other impact that you could have had there, Ross, is significant over inventories, and we've seen no signs of that.
所以你可能在那裡產生的唯一其他影響,羅斯,對庫存來說是顯著的,我們沒有看到任何跡象。
So as you put it all together, we continue to see good growth.
因此,當您將所有這些放在一起時,我們將繼續看到良好的增長。
Ross Clark Seymore - MD
Ross Clark Seymore - MD
And as my follow-up, just switching over to the margin line, perhaps for Bernard.
作為我的後續行動,只是切換到邊緣線,也許是為了伯納德。
If the weakness that others are pointing to ends up hitting you guys, either the duration or magnitude is greater than what you guys currently see for whatever reason, how should we think about how gross margin and OpEx can be flexed proactively if that negative scenario plays out?
如果其他人指出的弱點最終打擊到你們,無論是持續時間還是幅度都大於你們目前看到的,無論出於何種原因,如果出現這種負面情況,我們應該如何考慮如何主動調整毛利率和運營支出出去?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
So we will do what we have normally done in the past.
所以我們會做我們過去通常做的事情。
On the gross margin front, the fall through on the decremental revenue, if there is such a decrement, this is about a 50%.
在毛利率方面,減少收入的下降,如果有這樣的減少,這大約是 50%。
In cases of a slowdown, you insource more of the production that's currently outsourced.
在放緩的情況下,您可以將更多當前外包的生產內包。
So our mixture would change towards that.
所以我們的混合物會朝著那個方向改變。
On the OpEx front, variable comp and variable commissions would also be directly proportional to or affected by the reduction in that front.
在運營支出方面,可變薪酬和可變佣金也將與該方面的減少成正比或受其影響。
And then you take the normal belt-tightening actions that occur in any slowdown.
然後你採取在任何減速時都會發生的正常的勒緊褲腰帶的動作。
Operator
Operator
And our next question comes from Vijay Rakesh with 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 on the industrial side, I know you mentioned slight softness here in December.
就工業方面而言,我知道你在 12 月份提到了輕微的疲軟。
Just wondering if you're seeing anything out of the ordinary or is it just normal seasonality there?
只是想知道您是否看到了任何不尋常的東西,還是那裡只是正常的季節性?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
In general, it's normal seasonality, except some slight weakness in the China marketplace, as we discussed.
正如我們所討論的,一般來說,這是正常的季節性變化,除了中國市場略有疲軟。
And that's -- it's not significant.
那是 - 這並不重要。
So it's slightly down versus flattish normal seasonality.
因此,與平淡的正常季節性相比,它略有下降。
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 as you go into first half, this piece on the worries from your peers about visibility and tariff impact, just bigger picture, with another 25% hike on January 1, I guess, have you -- as you talk to your customers in Asia and especially emerging markets, is that -- are you seeing any worries as they look out?
當你進入上半年時,這篇文章是關於你的同行對知名度和關稅影響的擔憂,只是更大的圖景,我想,在 1 月 1 日又加息 25%,你有沒有 - 當你與亞洲的客戶交談時尤其是新興市場,您是否看到了他們的擔憂?
I know it's a little bit further away but...
我知道它有點遠,但...
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
The only worries we've seen have been in China on some of the consumer-type marketplaces.
我們看到的唯一擔憂是在中國的一些消費類市場。
And the, basically, concerns there, I think, are reflected in the weaknesses we've talked about.
我認為,基本上,那裡的擔憂反映在我們討論過的弱點中。
But otherwise, we haven't seen any significant impact, change in backlogs or order patterns.
但除此之外,我們還沒有看到任何重大影響、積壓或訂單模式的變化。
Operator
Operator
And our next question comes from Chris Caso with Raymond James.
我們的下一個問題來自 Chris Caso 和 Raymond James。
Christopher Caso - Research Analyst
Christopher Caso - Research Analyst
The first question is on distribution.
第一個問題是關於分配的。
And can you talk about sell-in versus sell-through in distribution for the third quarter and your expectations for the fourth quarter?
您能否談談第三季度分銷中的銷售與銷售以及您對第四季度的預期?
And in your prepared remarks, you said you're already at the low end of your target inventory range of distribution.
在你準備好的評論中,你說你已經處於目標庫存分佈範圍的低端。
Can you clarify what you mean by proactively managing inventory?
您能否闡明主動管理庫存的含義?
Are you seeking to bring down the level of distribution inventory further?
您是否正在尋求進一步降低分銷庫存水平?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
I think we're happy at the low end of our range.
我認為我們對我們範圍的低端感到高興。
In fact, we're very happy at the low end of our range.
事實上,我們對我們範圍的低端感到非常高興。
And what we've done with our distributors there is help them with visibility in our systems and manage the order patterns so that we stay there.
我們與分銷商所做的事情是幫助他們了解我們的系統並管理訂單模式,以便我們留在那裡。
So the real objective is to stay pretty close to the bottom half of that range as we go through the cycles -- or through the seasonality, I should say.
因此,真正的目標是在我們經歷週期或經歷季節性時保持非常接近該範圍的下半部分,我應該說。
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
And that would imply that sell-in would kind of equal sell-through.
這意味著賣出將等同於賣出。
Christopher Caso - Research Analyst
Christopher Caso - Research Analyst
Okay, got it.
好,知道了。
Just following on with OSA and the rationale for moving to the majority interest.
繼續關注 OSA 以及轉向多數利益的理由。
Was that something that you needed to do?
那是你需要做的事情嗎?
And I guess I just ask that -- it seems like that impact is $20 million in revenue on -- about flat -- with about 0 gross margins, rather.
而且我想我只是問一下-似乎這種影響是2000萬美元的收入-大約持平-毛利率約為0。
So what's the benefit for ON taking that majority interest?
那麼,ON 獲得多數股權有什麼好處呢?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
The reason we own the majority interest, quite frankly, is we wish to use all of that capacity over time.
坦率地說,我們擁有多數股權的原因是我們希望隨著時間的推移使用所有這些能力。
This is a structured phase-over to make that happen, and they have customers that need to be supported.
這是實現這一目標的結構化階段,他們有需要支持的客戶。
And so as part of the whole deal, we had a preplanned phase-over in the capacity.
因此,作為整個交易的一部分,我們對產能進行了預先計劃的逐步過渡。
So the real issue is we need to fill that up with our products.
所以真正的問題是我們需要用我們的產品來填充它。
And of course, as we do that, the margins for our products are significantly better.
當然,當我們這樣做時,我們產品的利潤率會明顯提高。
Operator
Operator
And our next question comes from John Pitzer with Crédit Suisse.
我們的下一個問題來自瑞士信貸的 John Pitzer。
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
Congratulations on the strong results.
祝賀你取得了不錯的成績。
Keith, I'm just wondering, relative to being a cushion, within the comms business and the compute business today, what percent is sort of infrastructure and kind of server cloud hyperscale in each?
基思,我只是想知道,相對於作為緩衝,在當今的通信業務和計算業務中,每種基礎設施和超大規模服務器雲的百分比是多少?
How does that trend year-over-year compared to last year?
與去年相比,這一趨勢如何?
And what do you think that's going to be 4 quarters from now?
你認為從現在開始的四個季度會是什麼?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
I'll take them separately.
我將它們分開。
On the computing side, the cloud server business has moved from a 20-ish percentage -- 20% of our computing business, up at least 10 points from that year-on-year.
在計算方面,雲服務器業務已從占我們計算業務的 20% 左右轉變為 20%,比去年同期增長至少 10 個百分點。
So -- and we see that trend continuing into 2019, so very significant increase in the cloud server portion of the total business.
所以——我們看到這種趨勢將持續到 2019 年,因此云服務器在總業務中所佔的比例非常顯著。
On the infrastructure piece, it has always been the smaller portion of our communications business.
在基礎設施方面,它一直是我們通信業務的一小部分。
But again, from a percentage basis, it's come up a couple of points year-on-year.
但同樣,從百分比來看,它同比上升了幾個百分點。
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head
That's helpful.
這很有幫助。
And then maybe a quick one for Bernard on the margin front.
然後對於伯納德來說可能是一個快速的邊緣前沿。
Bernard, you mentioned in an earlier question, a gross margin fall-through of about 50%.
伯納德,你在之前的問題中提到過,毛利率下降了大約 50%。
If you look over the last 4 quarters, excluding the quarter just reported, you were sort of above that.
如果您查看過去 4 個季度(不包括剛剛報告的季度),那麼您的業績就略高於該季度。
I think the incremental op margin was averaging about 56% -- I'm sorry, gross margin.
我認為增量運營利潤率平均約為 56%——對不起,毛利率。
Op margin was about 38%.
營業利潤率約為 38%。
So I'm just kind of curious, to what extent were input costs impacting things on a year-over-year basis?
所以我只是有點好奇,投入成本在多大程度上影響了同比?
And can you just level set us?
你能把我們設置成水平嗎?
You gave us the 50% kind of gross margin drop-through.
你給了我們 50% 的毛利率下降。
How should we think about op margin drop-through from here?
我們應該如何從這裡考慮運營利潤率下降?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Yes.
是的。
So the 50% is obviously a yard stick.
所以 50% 顯然是一個碼棒。
We think it is a good representation of a kind of a long term thing.
我們認為它很好地代表了一種長期的事物。
Yes, we do have in-between spikes where we are a little bit better or not.
是的,我們確實有介於兩者之間的尖峰,我們是否好一點。
In the long run, we also have the mix impact that will also push us to have higher than 50%.
從長遠來看,我們也有混合影響,這也將推動我們超過 50%。
The 50% is just at steady state.
50% 只是處於穩定狀態。
If you -- on top of that, you can add the mix, which should, over time, also get us some incremental amount.
如果您 - 最重要的是,您可以添加混合,隨著時間的推移,這也應該為我們帶來一些增量。
On the op margin, we're still targeting to do our 19% for our target model.
在運營利潤率上,我們的目標仍然是為我們的目標模型完成 19% 的目標。
We have done some nice progress, got -- going to about 17.8% in the third quarter, and expect to continue making progress towards that as part of growing OpEx at half of the pace of revenue growth and getting the gross margin leverage we've just talked about.
我們已經取得了一些不錯的進展,在第三季度達到了 17.8% 左右,並且預計將繼續朝著這一目標取得進展,作為以收入增長速度的一半增長 OpEx 並獲得我們已經獲得的毛利率槓桿的一部分剛剛談到。
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 again, if I could sneak one more in there.
再說一次,如果我能再偷偷溜進去的話。
Glad to see you guys buy back stock in the quarter.
很高興看到你們在本季度回購股票。
Despite that, you were still able to grow gross cash.
儘管如此,您仍然能夠增加總現金。
And Keith, I'm kind of curious, just given where the stock price is today, kind of what your view is on buybacks and how we should think about sort of just capital allocation from here?
基思,我有點好奇,只是考慮到今天的股價,你對回購的看法是什麼,以及我們應該如何考慮從這裡開始的資本分配?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
So we have taken a balanced approach towards paying down debt as well as buying back shares.
因此,我們採取了平衡的方式來償還債務和回購股票。
The buying back shares, we announced it that, in the second quarter, we're going back into the market.
回購股票,我們宣布,在第二季度,我們將重返市場。
And we'll obviously take a look at dislocations that occur in the market as we go through that.
我們顯然會在經歷這一過程時看看市場上發生的錯位。
Operator
Operator
And our next question comes from Krysten Sciacca with Nomura Instinet.
我們的下一個問題來自 Nomura Instinet 的 Krysten Sciacca。
Krysten Sciacca - Research Analyst
Krysten Sciacca - Research Analyst
Congrats on the good results.
恭喜取得好成績。
I just wanted to follow up on the lead time question.
我只是想跟進交貨時間問題。
A lot of your peers are noting that lead times are actually falling a bit to more stable or normalized levels versus being extended over the past year, but yet you're seeing your lead times remain extended and should be, or at least through the first half of next year.
您的許多同行都注意到與過去一年的延長相比,交貨時間實際上正在下降到更穩定或正常化的水平,但是您看到交貨時間仍然延長並且應該延長,或者至少在第一次明年下半年。
Could you maybe give a little bit more color on that, on what is driving that trend?
你能不能多說一點,是什麼推動了這種趨勢?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
Again, it has been the significant content increase we've had, primarily in medium- and high-voltage marketplaces, and it is quite stable, it's just on -- it's just longer than normal.
同樣,這是我們的內容顯著增加,主要是在中高壓市場,而且它非常穩定,它只是開啟 - 它只是比正常時間長。
So we're not really seeing any volatility in the numbers.
因此,我們並沒有真正看到數字有任何波動。
But the demand remains high, and so those lead times will remain extended.
但需求仍然很高,因此這些交貨時間將繼續延長。
Krysten Sciacca - Research Analyst
Krysten Sciacca - Research Analyst
Great.
偉大的。
And then just switching over to comms.
然後只是切換到通訊。
In your prepared remarks, you said you expect the revenues to be flat for next quarter sequentially versus sequential -- versus historically, seasonally down.
在你準備好的評論中,你說你預計下個季度的收入將與連續相比持平——與歷史上的季節性下降相比。
Can you maybe just dig into what trends you're seeing that would promote that above-seasonal growth?
您能否深入了解您看到的哪些趨勢會促進高於季節性的增長?
Is that mainly 5G-related revenue?
那主要是5G相關的收入嗎?
Or is there some other factors play into effect there?
還是有其他一些因素在那裡起作用?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
It's -- certainly, 5G is a factor, although it's early in that ramp out.
這是——當然,5G 是一個因素,儘管它還處於起步階段。
So that's some of it.
這就是其中的一部分。
The other piece, frankly, is just content increases we had in the new models of handsets that rolled out.
坦率地說,另一部分只是我們在推出的新手機型號中的內容增加。
And those -- from a build perspective, our customers are still showing us good demand in Q4.
而那些——從構建的角度來看,我們的客戶在第四季度仍然向我們展示了良好的需求。
Operator
Operator
Our next question comes from Anthony Stoss with Craig-Hallum.
我們的下一個問題來自 Anthony Stoss 和 Craig-Hallum。
Anthony Joseph Stoss - Managing Partner & Senior Research Analyst
Anthony Joseph Stoss - Managing Partner & Senior Research Analyst
My congrats on the strong execution as well.
我也祝賀強大的執行力。
Bernard, can you give us what your capacity utilization was in Q3?
伯納德,您能告訴我們您在第三季度的產能利用率嗎?
And any thoughts on where you think it might be in Q4?
對您認為第四季度可能出現的位置有什麼想法嗎?
And then lastly, on silicon carbide, do you expect the bulk of your wafers to come from external sources or internal?
最後,在碳化矽上,您希望您的大部分晶圓來自外部還是內部?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
So capacity utilization in third quarter, in the mid to high 80s.
所以三季度產能利用率在80年代中高位。
Expect that to be similar, maybe coming down slightly in the fourth quarter.
預計情況會相似,可能在第四季度略有下降。
And then the silicon carbide, we are outsourcing the raw wafers.
然後是碳化矽,我們將原始晶圓外包。
We have long-term agreements on that front.
我們在這方面達成了長期協議。
We do internally our own raw wafers for regular silicon, and we talked about that several times that we are increasing our capacity to serve more and be less dependent on these input costs, but not on the -- not on internal -- not on the silicon carbide right now.
我們在內部為普通矽製造自己的原始晶圓,我們多次談到,我們正在提高我們的服務能力,以減少對這些投入成本的依賴,但不是在——不是在內部——不是在現在的碳化矽。
Operator
Operator
And our next question comes from Craig Ellis with B. Riley FBR.
我們的下一個問題來自 Craig Ellis 和 B. Riley FBR。
Craig Andrew Ellis - Senior MD & Director of Research
Craig Andrew Ellis - Senior MD & Director of Research
Congratulations on the execution in the quarter.
祝賀本季度的執行。
The first question is related to content gain.
第一個問題與內容增益有關。
Keith, you pointed out good things happening in compute and server and in smartphones.
Keith,您指出了計算和服務器以及智能手機中發生的好事。
So the question is with Intel having 3 server product transitions in 4Q '18, 4Q '19 and then 2020, what do you expect will happen with ON's server content with those transitions?
所以問題是英特爾在 18 年第 4 季度、19 年第 4 季度和 2020 年進行了 3 次服務器產品轉換,您預計 ON 的服務器內容在這些轉換中會發生什麼?
Now on the smartphone side, is the content gain we're seeing really more of a second half dynamic?
現在在智能手機方面,我們看到的內容收益真的更多的是下半年動態嗎?
Or would you expect to be gaining content with first half model launches as well?
或者您是否希望通過上半年模型發布獲得內容?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
On the computing side, our content will continue to go up with the new processor releases.
在計算方面,我們的內容將隨著新處理器的發布而繼續增加。
So we see that as a very positive trend.
所以我們認為這是一個非常積極的趨勢。
We believe also our share gains should be going up.
我們也相信我們的股票收益應該會上升。
So similar to what went on in the notebooks a few years ago, we are expecting a continued positive story on the compute side.
與幾年前筆記本中發生的情況非常相似,我們期待在計算方面繼續出現積極的故事。
In the handsets, the ones that will launch in the first half of next year will also have that increased gains, so that should also, again, be a good story relative to seasonality.
在手機方面,將在明年上半年推出的手機也將獲得增加的收益,因此相對於季節性而言,這也應該是一個好故事。
Craig Andrew Ellis - Senior MD & Director of Research
Craig Andrew Ellis - Senior MD & Director of Research
And then the follow-up question is for Bernard.
接下來的問題是針對伯納德的。
Bernard, setting aside the manufacturing JV's impact to gross margin in the fourth quarter, there's still a decrease of around 50 to 60 basis points, it looks like.
伯納德,撇開製造合資企業對第四季度毛利率的影響,看起來仍然下降了大約 50 到 60 個基點。
So is that primarily utilization?
那麼這主要是利用嗎?
Or are there other factors at play, like input costs or pricing?
還是有其他因素在起作用,例如投入成本或定價?
And then as we look ahead to the first quarter, I think that's when the company would typically see more of its large customer long-term contract renewals occur.
然後,當我們展望第一季度時,我認為那是公司通常會看到更多大客戶長期合同續籤的時候。
Can you just help us with the gives and takes with gross margin?
你能幫我們解決毛利率的問題嗎?
Not looking for guidance but just some higher-level color.
不是在尋找指導,而是在尋找一些更高級別的顏色。
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Sure.
當然。
So in the fourth quarter, the gross margin decline beyond the OSA is mostly just revenue-related, though.
因此,儘管在第四季度,OSA 以外的毛利率下降主要與收入有關。
It's utilization.
是利用。
We're guiding to a lower number than the -- in the third quarter's actuals.
我們指導的數字低於第三季度的實際數字。
It is approximately a 50% fall-through on the decremental revenue, so there is no -- nothing bigger there.
減少的收入大約下降了 50%,所以沒有 - 沒有比這更大的了。
Contracts or pricing continues being quite benign, and we're seeing that in our -- also in our annual contract negotiations.
合同或定價仍然相當溫和,我們在我們的 - 也在我們的年度合同談判中看到了這一點。
Operator
Operator
And our next question comes from Tristan Gerra with Baird.
我們的下一個問題來自 Tristan Gerra 和 Baird。
Tristan Gerra - MD and Senior Research Analyst
Tristan Gerra - MD and Senior Research Analyst
Could you provide a little bit of color on your CMOS camera business in automotive?
您能否介紹一下您在汽車領域的 CMOS 相機業務?
You've talked in the past about 70% market share.
您過去曾談到 70% 的市場份額。
How's the outlook in that business for next year?
該業務明年的前景如何?
And are you ramping on track?
你是否正在走上正軌?
Or are you seeing any type of delays?
或者您是否看到任何類型的延遲?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
The 70% is for ADAS.
70% 用於 ADAS。
Overall, I think we're about 55%, if you include all viewing, in cars.
總的來說,我認為我們大約有 55%,如果你包括所有觀看,在汽車中。
We see that continuing.
我們看到這種情況仍在繼續。
I think -- again, we believe we have increased that a bit for next year's models, and so we expect that to continue to ramp up in double digits next year.
我認為 - 再次,我們相信我們已經為明年的車型增加了一點,所以我們預計明年將繼續以兩位數的速度增長。
Tristan Gerra - MD and Senior Research Analyst
Tristan Gerra - MD and Senior Research Analyst
Okay.
好的。
And then any changes that you expect to see in terms of pricing patterns as you enter renegotiating agreements for next year?
然後,當您進入明年的重新談判協議時,您期望在定價模式方面看到任何變化?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Our pricing patterns this year have been quite benign, as Bernard talked about.
正如伯納德所說,我們今年的定價模式相當溫和。
I would expect going into next year, the first quarter should be better than normal.
我預計進入明年,第一季度應該會比正常情況好。
But obviously, the rest of the year, we'll have to wait and see what the markets provide.
但顯然,在今年剩下的時間裡,我們將不得不拭目以待,看看市場會提供什麼。
Operator
Operator
And our next question comes from Chris Rolland with Susquehanna.
我們的下一個問題來自 Chris Rolland 和 Susquehanna。
Christopher Adam Jackson Rolland - Senior Analyst
Christopher Adam Jackson Rolland - Senior Analyst
Congrats on the out-performance versus some of your peers here.
恭喜這裡的表現優於你的一些同行。
That was pretty impressive.
那是相當令人印象深刻的。
So I believe there may be 3 extra days in the quarter, at least I think you talked about on the OpEx side.
因此,我相信本季度可能會多出 3 天,至少我認為您在運營支出方面談到了這一點。
I was wondering how you are treating the revenue.
我想知道你是如何處理收入的。
Is it kind of half of that or are you counting it kind of as 0?
是一半還是你把它算作0?
And then just back to pricing.
然後回到定價。
So previously, ON way back in the day, we used to talk about 1% to 2% price decreases quarter-to-quarter.
所以以前,在過去的日子裡,我們曾經談論過每季度價格下降 1% 到 2%。
Is that -- has this dynamic changed now, in your opinion, considering you're no longer like highly commoditized products?
是不是 - 在您看來,考慮到您不再喜歡高度商品化的產品,這種動態現在是否發生了變化?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
So let me answer the 3 extra days.
所以讓我回答額外的3天。
Historically, when we have had -- our experience on the 3 extra days is that you really get very little in terms of extra revenue because you are looking at the holiday season during that time frame.
從歷史上看,當我們有 - 我們在額外 3 天的經驗是,您實際上獲得的額外收入非常少,因為您正在查看那個時間範圍內的假日季節。
But you have to pay the people so it is mostly affecting OpEx, but with very little offset in the incremental revenue.
但是你必須付錢給人們,所以它主要影響 OpEx,但對增量收入的抵消很少。
And it's part of our revenue guidance, already embedded.
這是我們收入指導的一部分,已經嵌入。
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
On the longtime -- long-term pricing trends, we are getting a higher content for sole-sourced products, and so we would expect that that would become more muted.
在長期 - 長期定價趨勢中,我們正在為單一來源的產品獲得更高的內容,因此我們預計這種情況會變得更加溫和。
The typical 1% to 2% would become more muted each year.
每年典型的 1% 到 2% 會變得更加低調。
Christopher Adam Jackson Rolland - Senior Analyst
Christopher Adam Jackson Rolland - Senior Analyst
Got it.
知道了。
And then just a quick one on linearity.
然後只是一個關於線性的快速討論。
Accounts receivable was up, but days are fine there.
應收賬款增加了,但那裡的日子很好。
But is there anything about linearity and booking trends through the quarter?
但是本季度的線性度和預訂趨勢有什麼問題嗎?
Was there any sort of a deceleration at all in the month of September?
9 月份有沒有任何形式的減速?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
The linearity has been pretty steady.
線性一直很穩定。
We haven't seen any massive changes there.
我們在那裡沒有看到任何巨大的變化。
From the revenue point of view, Q3 is typically back-end loaded and Q4 is typically front-end loaded.
從收入的角度來看,第三季度通常是後端加載,第四季度通常是前端加載。
But we're not seeing any difference in our normal patterns.
但我們沒有看到我們的正常模式有任何不同。
Operator
Operator
And our next question comes from Kevin Cassidy with Stifel.
我們的下一個問題來自 Stifel 的 Kevin Cassidy。
Kevin Edward Cassidy - Director
Kevin Edward Cassidy - Director
You had mentioned the increased content in handsets on the new models.
您提到了新型號手機中增加的內容。
Can you give us a breakout of the Tier 1 models versus, say, the China-based mid-range models?
您能給我們介紹一下 1 級車型與中國中檔車型的對比嗎?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
So most of them are higher-end models.
所以大部分都是高端機型。
And it's about half China-based and half non-China OEM-based, when you add it up in aggregate, and that's been a fairly stable position.
當你把它加起來時,它大約有一半來自中國,一半來自非中國 OEM,這是一個相當穩定的位置。
We strive to have some balance in that market because picking winners and losers is a difficult job.
我們努力在那個市場上取得一些平衡,因為挑選贏家和輸家是一項艱鉅的工作。
Kevin Edward Cassidy - Director
Kevin Edward Cassidy - Director
Right, great.
對,太好了。
And on your raw wafer capacity, what's the goal for the total percentage of in-house wafer production?
對於您的原始晶圓產能,內部晶圓生產的總百分比目標是多少?
And where does it stand right now?
它現在在哪裡?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
So the production for -- based on the capital investments we made this year, will get us to about 50% internal supply.
因此,根據我們今年進行的資本投資,生產將使我們獲得大約 50% 的內部供應。
And I don't see that shifting significantly in 2019.
而且我認為這種情況在 2019 年不會發生顯著變化。
Operator
Operator
And our next question comes from Harlan Sur with JPMorgan.
我們的下一個問題來自摩根大通的 Harlan Sur。
Harlan Sur - Senior Analyst
Harlan Sur - Senior Analyst
Nice job on the quarterly execution, guys.
伙計們,在季度執行方面做得很好。
Good to see the ramp in your 5G design wins, medium-voltage products.
很高興看到您的 5G 設計獲勝,中壓產品。
Can you guys just help us understand where these wins are situated?
你們能幫助我們了解這些勝利的位置嗎?
Is it primarily power supply or the compute DSP processor, power management or signal chain?
它主要是電源還是計算 DSP 處理器、電源管理或信號鏈?
Any color here would be appreciated.
這裡的任何顏色都將不勝感激。
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
It's almost exclusively the power-related products for 5G in all instances.
在所有情況下,它幾乎都是 5G 的電力相關產品。
Harlan Sur - Senior Analyst
Harlan Sur - Senior Analyst
Great.
偉大的。
Can you guys just maybe, at a high level, kind of discuss the order trends thus far here in December quarter?
你們能否在高層次上討論一下 12 月季度迄今為止的訂單趨勢?
I know it's a bit early, but normal seasonal quarter-on-quarter trend for the team is kind of flat to down 2% in the March quarter.
我知道這有點早,但團隊的正常季節性季度環比趨勢在 3 月季度持平至下降 2%。
Anything that you're seeing that would lead you to believe that things could play out a bit differently at this point?
你所看到的任何東西會讓你相信事情在這一點上可能會有所不同?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Currently, we don't have any visibility that would indicate otherwise.
目前,我們沒有任何能表明其他情況的可見性。
Operator
Operator
And our next question comes from Rajvindra Gill with 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
Thank you and congrats as well.
謝謝你,也恭喜你。
Just some clarification on the previous questions.
只是對前面問題的一些澄清。
Could you specify what the book-to-bill was for the September quarter and, more specifically, on the -- for the month of September?
您能否具體說明 9 月季度的帳單到帳單,更具體地說,是 - 9 月?
Any kind of clarity there?
有什麼明確的嗎?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Yes.
是的。
We don't normally spell out these numbers, but it was above 1.
我們通常不會拼出這些數字,但它在 1 以上。
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
Okay.
好的。
And there wasn't any signs of kind of abnormal order cancellations or order rescheduling?
並且沒有任何異常訂單取消或訂單重新安排的跡象?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
None at all.
一個都沒有。
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
Okay, got it.
好,知道了。
And just another follow-up on that.
這只是另一個後續行動。
In terms of your Q4 guidance, and it might be difficult to elucidate this, but how much do you think the guidance is related to any kind of pull-in of demand from early next year ahead of the tariff increases?
就您的第四季度指導而言,可能很難闡明這一點,但您認為該指導與明年初關稅上調之前的任何形式的需求拉動有多大關係?
I know you have a lot of semi content gains in auto, industrial, cloud server, et cetera.
我知道你在汽車、工業、雲服務器等領域有很多半內容收益。
Any kind of clarity on that?
有什麼明確的嗎?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
We really don't have any indication that that's what's going on.
我們真的沒有任何跡象表明這就是正在發生的事情。
And again, if you look at the percentage of products that are imported back into the U.S., I don't know how significant that could be.
再說一次,如果你看看進口回美國的產品的百分比,我不知道這可能有多重要。
But certainly, we've been given no indications from customers that that's what's going on.
但可以肯定的是,我們沒有從客戶那裡得到任何跡象表明這是正在發生的事情。
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 last question, just housekeeping.
最後一個問題,只是家務。
What's the tax rate expected for '019?
019年的預期稅率是多少?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Approximately 10%.
大約 10%。
Operator
Operator
And our next question comes from Mark Delaney with 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
So hoping for an update on how many synergies may be left to achieve in COGS from Fairchild.
因此,希望獲得有關 Fairchild 在 COGS 中可能實現多少協同效應的最新信息。
And related to that, I think ON had planned product qualifications recently that would allow ON to consolidate factories somewhat faster in a future downturn, if necessary, than some of the past downturns.
與此相關的是,我認為 ON 最近計劃了產品資格認證,這將使 ON 在未來的低迷時期(如有必要)比過去的一些低迷時期更快地整合工廠。
So can you give us an update on what ON may have done on that front and what it could mean for your cost structure?
那麼,您能否向我們介紹一下 ON 可能在這方面所做的工作以及這對您的成本結構可能意味著什麼?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
Sure.
當然。
So on the synergies, we basically had said that it would come in throughout '18 and spill over into '19.
所以關於協同效應,我們基本上說過它將在整個 18 年進入並蔓延到 19 年。
We are seeing a good traction on that.
我們在這方面看到了很好的吸引力。
We are, I would say, not completely done, but getting close to being done on that front.
我想說,我們還沒有完全完成,但在這方面已經接近完成。
On the other question, what was the other question?
關於另一個問題,另一個問題是什麼?
Mark Trevor Delaney - Equity Analyst
Mark Trevor Delaney - Equity Analyst
I thought you had qualified certain products out of multiple factories?
我以為你們已經對多家工廠的某些產品進行了認證?
Bernard Gutmann - CFO, EVP and Treasurer
Bernard Gutmann - CFO, EVP and Treasurer
We have -- we always -- as a matter of business, we always like to have multiple-source qualifications.
我們有——我們一直——作為業務問題,我們總是喜歡擁有多源資格。
And we talked about potentially having some footprint consolidations, which we have also indicated that with the high demands we have right now, we are not executing to.
我們談到了可能進行一些足跡整合,我們還表示,由於我們現在的高要求,我們沒有執行。
But it is always something that we have in the back of our minds in case we have a disruption or in a more -- in a stronger downturn.
但它始終是我們腦海中的事情,以防我們遇到中斷或更嚴重的衰退。
Mark Trevor Delaney - Equity Analyst
Mark Trevor Delaney - Equity Analyst
Got it.
知道了。
And for my second question, I was just hoping for some us more clarity about how much revenue ON is recognizing currently in automotive from silicon carbide products and how you expect that to come in for 2019?
對於我的第二個問題,我只是希望我們能更清楚地了解 ON 目前在汽車領域從碳化矽產品中獲得了多少收入,以及您預計 2019 年的收入如何?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
Yes.
是的。
We are not giving specifics on that yet.
我們還沒有給出具體細節。
But as I mentioned, in total, silicon carbide would be in the tens of millions this year, ramping multiples each year.
但正如我所提到的,今年碳化矽的總量將達到數千萬,每年都會增加數倍。
Operator
Operator
And our next question comes from Craig Hettenbach with 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
Keith, if I can contrast just some of the markets in terms of what you're seeing, so stability in automotive versus some weakness in industrial, can you just talk about some of the demand signals you're seeing in each of those instances from customers?
基思,如果我可以對比一下你所看到的一些市場,那麼汽車的穩定性與工業的一些弱點,你能否談談你在每個實例中看到的一些需求信號顧客?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
So again, we've seen very positive demand signals.
因此,我們再次看到了非常積極的需求信號。
Bernard mentioned a book-to-bill over 1. That is in aggregate and comprehends the weaknesses we talked about in China consumer and industrial areas.
伯納德提到了超過 1 的訂單到賬單。這是一個總體,並且理解了我們在中國消費和工業領域談到的弱點。
So both of them, I would say, are seasonal.
所以我想說,它們都是季節性的。
The automotive piece is higher than seasonal because the content gains in the industrial piece, when you offset for the weakness in China, is pretty close to normal.
汽車部分高於季節性,因為工業部分的內容增長,當你抵消中國的疲軟時,非常接近正常。
Craig Matthew Hettenbach - VP
Craig Matthew Hettenbach - VP
Okay.
好的。
And in China, where you are seeing some weakness, can you talk about kind of when that developed within the quarter and how it's looking into the end of this quarter?
在中國,你看到了一些弱點,你能談談這個季度內的發展時間以及本季度末的情況嗎?
Keith D. Jackson - CEO, President and Director
Keith D. Jackson - CEO, President and Director
That actually started developing in the third quarter and I'd say to be -- kind of the August time frame.
這實際上是在第三季度開始發展的,我會說是 - 有點像 8 月的時間框架。
So it wasn't the end of the month, and it stabilized very quickly after some initial adjustments.
所以不是月底,經過一些初步的調整,很快就穩定下來了。
Operator
Operator
That does conclude today's question-and-answer session.
今天的問答環節到此結束。
I would now like to turn the call back to Parag Agarwal, VP of Corporate Development and Investor Relations, for any further remarks.
我現在想將電話轉回企業發展和投資者關係副總裁 Parag Agarwal,以徵求任何進一步的意見。
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 conferences during the quarter.
我們期待在本季度的各種會議上見到您。
Thank you, and bye-bye.
謝謝你,再見。
Operator
Operator
Ladies and gentlemen, this does conclude today's conference.
女士們,先生們,今天的會議到此結束。
Thank you for your participation, and everyone, you may disconnect.
感謝您的參與,大家可以斷開連接。
Everyone, have a great day.
大家,有一個美好的一天。