TTM Technologies Inc (TTMI) 2021 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to TTM Technologies' Fourth Quarter 2021 Financial Results Conference Call. (Operator Instructions)

下午好，女士們，先生們。感謝您的支持，歡迎參加迅達科技 2021 年第四季度財務業績電話會議。 （操作員說明）

As a reminder, this call is being recorded today, February 9, 2021. Sameer Desai, TTM's Vice President of Corporate Development and Investor Relations, will now review TTM's disclosure statement. Please go ahead.

提醒一下，本次通話將於 2021 年 2 月 9 日錄製。迅達企業發展和投資者關係副總裁 Sameer Desai 現在將審查迅達的披露聲明。請繼續。

Thanks, Keith. Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the factors explained in our more recent annual report on Form 10-K and our other filings with the Securities and Exchange Commission. These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation. TTM does not undertake any obligation to publicly update or revise any of these statements, whether as a result of new information, future events or other circumstances, except as required by law. Please refer to the disclosures regarding the risks that may affect TTM, which may be found in the reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the company's other SEC filings.

謝謝，基思。在開始之前，我想提醒大家，今天的電話會議包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括與迅達未來業務前景相關的陳述。由於一項或多項風險和不確定性，包括我們最近的 10-K 表格年度報告和我們向證券交易委員會提交的其他文件中解釋的因素，實際結果可能與這些前瞻性陳述存在重大差異。這些前瞻性陳述基於管理層截至本演示文稿之日的預期和假設。 TTM 不承擔任何義務公開更新或修改任何這些聲明，無論是由於新信息、未來事件或其他情況，除非法律要求。請參閱有關可能影響 TTM 的風險的披露，這些披露可在表格 10-K、10-Q、8-K 的報告、表格 S-4 的註冊聲明和公司的其他 SEC 文件中找到。

We will also discuss on this call certain non-GAAP financial measures such as adjusted EBITDA. Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliation of non-GAAP to GAAP measures included in the company's press release, which was filed with the SEC and is available on TTM's website, www.ttm.com. We have also posted on our website a slide deck, which we will refer to during our call.

我們還將在本次電話會議上討論某些非公認會計原則財務措施，例如調整後的 EBITDA。此類措施不應被視為替代根據 GAAP 準備和提出的措施，我們會指導您將非 GAAP 措施與公司新聞稿中包含的 GAAP 措施進行對賬，該新聞稿已提交給 SEC 並可用在 TTM 的網站 www.ttm.com 上。我們還在我們的網站上發布了一個幻燈片，我們將在通話期間參考。

I will now turn the call over to Tom Edman, TTM's Chief Executive Officer. Please go ahead, Tom.

我現在將把電話轉給迅達的首席執行官湯姆埃德曼。請繼續，湯姆。

Thank you, Sameer. Good afternoon, and thank you for joining us for our fourth quarter and fiscal year 2021 conference call. I'll begin with a review of our business highlights from the quarter and a discussion of our fourth quarter results, followed by a summary of our business strategy. Todd Schull, our CFO, will follow with an overview of our Q4 2021 financial performance and our Q1 2022 guidance. We will then open the call to your questions.

謝謝你，薩米爾。下午好，感謝您參加我們的第四季度和 2021 財年電話會議。我將首先回顧我們本季度的業務亮點並討論我們的第四季度業績，然後是我們的業務戰略摘要。我們的首席財務官 Todd Schull 將隨後概述我們 2021 年第四季度的財務業績和 2022 年第一季度的指導。然後，我們將打開您的問題的電話。

In the fourth quarter of 2021, TTM delivered revenues above the guided range and non-GAAP EPS at the high end of guidance, despite a challenging supply chain and labor environment and the impact of the Omicron variant of COVID-19. All end markets performed better than we expected, with strong year-on-year growth led by our commercial end markets. These results were achieved despite ongoing operational headwinds, including supply chain constraints for ourselves and our customers, inflationary pressures, and continued labor and logistics challenges in North America, resulting in production inefficiencies.

儘管供應鍊和勞動力環境充滿挑戰以及 COVID-19 Omicron 變體的影響，但在 2021 年第四季度，迅達的收入超過了指導範圍和非 GAAP 每股收益處於指導的高端。所有終端市場的表現都好於我們的預期，我們的商業終端市場帶動了強勁的同比增長。儘管存在持續的運營逆風，包括我們自己和我們的客戶的供應鏈限制、通貨膨脹壓力以及北美持續的勞動力和物流挑戰，但這些結果還是取得了，導致生產效率低下。

Given the time that raw material prices take to work through our inventory, the impact to our cost of goods sold was larger in Q4 than in Q3, but is stabilizing at an elevated level in Q1. During 2021, we mitigated virtually all of the material price increases through additional cost savings, adjustment in mix and product price adjustments. However, production inefficiencies and labor challenges in North America further exacerbated our costs and output challenges in the fourth quarter and will continue to do so in the first quarter.

考慮到原材料價格通過我們的庫存所需的時間，第四季度對我們銷售成本的影響大於第三季度，但在第一季度穩定在較高的水平。 2021 年，我們通過額外的成本節約、產品組合調整和產品價格調整，幾乎緩解了所有材料價格上漲。然而，北美的生產效率低下和勞動力挑戰進一步加劇了我們在第四季度的成本和產出挑戰，並將在第一季度繼續這樣做。

Looking into the first quarter, we are expecting a sequential decline in revenues and profits due to seasonality associated with Chinese New Year, having 1 less week in the quarter and continued labor challenges in North America.

展望第一季度，我們預計收入和利潤將連續下降，原因是與農曆新年相關的季節性因素、本季度減少了 1 週以及北美持續的勞動力挑戰。

For the full year 2021, excluding divested and closed businesses, TTM grew 10.9%, with solid profitability despite all the challenges we previously mentioned. Full year cash flow from operations was $176.6 million, and we used part of our cash flow to return capital to shareholders, as Todd will discuss later. This has been and continues to be one of the most difficult manufacturing environments we have ever experienced, and I am proud of what our employees have accomplished in the face of these challenges.

2021 年全年，不包括剝離和關閉的業務，TTM 增長了 10.9%，儘管面臨我們之前提到的所有挑戰，但盈利能力穩健。全年運營現金流為 1.766 億美元，我們使用部分現金流將資本返還給股東，托德稍後將討論。這一直是並將繼續是我們經歷過的最困難的製造環境之一，我為我們的員工在面對這些挑戰時所取得的成就感到自豪。

I would also like to update you on the COVID situation. As you are aware, the Omicron variant has created another surge of positive cases during the winter in North America as well as other parts of the world. At TTM our employee population was similarly impacted with positive COVID cases that continue into Q1 resulting in employee quarantines which, along with the general labor shortages, contributed to production inefficiencies and capacity constraints in North America. In some facilities, our absentee rate climbed to as much as 20%. In late January, we started to see relief as cases began to subside and our absentee rate started to decline. All of our manufacturing facilities have been and continue to be operational.

我還想向您介紹 COVID 的最新情況。如您所知，Omicron 變體在冬季期間在北美以及世界其他地區造成了又一次陽性病例激增。在 TTM，我們的員工群體同樣受到 COVID 陽性病例的影響，這些病例持續到第一季度，導致員工隔離，再加上普遍的勞動力短缺，導致北美的生產效率低下和產能受限。在某些設施中，我們的缺勤率攀升至高達 20%。 1 月下旬，隨著案件開始消退，我們的缺勤率開始下降，我們開始看到緩解。我們所有的製造設施都已經並將繼續運行。

Like many other companies, we continue to see challenges in attracting and retaining labor, particularly in North America. Our employees are paramount to the success of TTM, and we actively endeavor to demonstrate their value to our company through a combination of financial and nonfinancial methods. We have done a thorough review of our compensation practices and have embarked on a significant initiative to realign our compensation in North America, with the goal of being competitive in the labor markets in which we operate. These changes will increase our cost structure in the first half of the year while improving our labor positioning. In the fourth quarter, as it became clear that we needed to make these adjustments, we announced another round of price increases to our customers. Given our extensive backlog and contractual commitments, we do not expect the full impact of the new pricing to take effect until the second half of the year. As a result, we expect profitability to improve in the second half over the first half.

與許多其他公司一樣，我們在吸引和留住勞動力方面繼續面臨挑戰，尤其是在北美。我們的員工對迅達的成功至關重要，我們積極努力通過結合財務和非財務方法向公司展示他們的價值。我們已經對我們的薪酬實踐進行了徹底的審查，並開始了一項重大舉措，以重新調整我們在北美的薪酬，目標是在我們經營所在的勞動力市場上保持競爭力。這些變化將增加我們上半年的成本結構，同時改善我們的勞動力定位。在第四季度，由於我們需要進行這些調整變得很明顯，我們向客戶宣布了另一輪價格上漲。鑑於我們大量的積壓和合同承諾，我們預計新定價的全部影響要到今年下半年才會生效。因此，我們預計下半年的盈利能力將比上半年有所改善。

Our long-term strategy remains unchanged. TTM is on a journey to transform our business to be less cyclical and more differentiated. We believe that over time, investors will be rewarded with more stable growth, strong cash flow performance and improving margins. As part of this strategic transition, we sold our Mobility business in 2020. We are now able to generate more consistent cash flow with our strong set of technologies and broad exposure to longer-cycle end markets.

我們的長期戰略保持不變。 TTM 正在將我們的業務轉變為更少週期性和更具差異化的旅程。我們相信，隨著時間的推移，投資者將獲得更穩定的增長、強勁的現金流表現和更高的利潤率。作為這一戰略轉型的一部分，我們在 2020 年出售了我們的移動業務。我們現在能夠憑藉我們強大的技術組合和對更長周期終端市場的廣泛敞口產生更穩定的現金流。

A key part of our ongoing strategy will be to add capabilities and products that are complementary to our current offerings, both internally and through acquisitions. As such, we continue to invest organically in differentiated product technology solutions from our advanced technology center, RF&S business units and microelectronics businesses. Looking forward, our balance sheet is in a strong position to further -- to pursue further acquisitions as well as to support our organic investment needs.

我們持續戰略的一個關鍵部分將是增加與我們當前產品互補的功能和產品，無論是在內部還是通過收購。因此，我們繼續有機地投資於我們先進技術中心、RF&S 業務部門和微電子業務的差異化產品技術解決方案。展望未來，我們的資產負債表處於有利地位，可以進一步進行收購併支持我們的有機投資需求。

Now I'd like to review our end markets. All historical end market disclosures exclude the divested Mobility business unit and the 2 E-MS plants, which halted production in December of 2020. For more details on end-market disclosures, please refer to Pages 4 and 5 of our earnings presentation, which is posted on our website. The aerospace and defense end market represented 30% of total fourth quarter sales compared to 38% of Q4 2020 sales and 31% of sales in Q3 2021. We continue to experience a positive defense climate, with our A&D program backlog at $768 million, a new record compared to $687 million a year ago. The solid demand in the defense market is a result of our strong strategic program alignment and key bookings for ongoing franchise programs.

現在我想回顧一下我們的終端市場。所有歷史終端市場披露均不包括已剝離的 Mobility 業務部門和 2 家 E-MS 工廠，後者於 2020 年 12 月停產。有關終端市場披露的更多詳情，請參閱我們收益報告的第 4 頁和第 5 頁，即發佈在我們的網站上。航空航天和國防終端市場佔第四季度總銷售額的 30%，而 2020 年第四季度銷售額和 2021 年第三季度銷售額分別為 38% 和 31%。我們繼續經歷積極的國防環境，我們的 A&D 計劃積壓為 7.68 億美元，與一年前的 6.87 億美元相比，創下新紀錄。國防市場的強勁需求是我們強大的戰略計劃調整和正在進行的特許經營計劃的關鍵預訂的結果。

We saw significant bookings in the quarter for the SPY-6 AESA radar program, and our overall book-to-bill for A&D was 1.25. We expect sales in Q1 from this end market to represent about 33% of our total sales. For the full year, aerospace and defense decreased 2.3% due to significant declines in commercial aerospace and ongoing production inefficiencies in North America.

我們在本季度看到了 SPY-6 AESA 雷達計劃的大量預訂，我們 A&D 的總體預訂比為 1.25。我們預計第一季度該終端市場的銷售額將占我們總銷售額的 33% 左右。由於商業航空航天的顯著下降和北美持續的生產效率低下，航空航天和國防行業全年下降了 2.3%。

We were happy to see the National Defense Authorization Act, or NDAA, for fiscal 2022 signed into law last December, providing a roughly 5% increase in top line defense spending. In addition, the new Section 851 of the 2022 NDAA requires that the Department of Defense purchase products that contain printed circuit boards manufactured by U.S. suppliers or from U.S-allied countries that are part of the weapons systems and other telecom and datacom or other critical commercial applications used by the Department of Defense, starting in January 2027. This should provide long-term benefits to TTM due to our strong North America footprint.

我們很高興看到去年 12 月簽署成為法律的 2022 財年國防授權法案（NDAA），使最高國防開支增加了大約 5%。此外，2022 NDAA 新的第 851 條要求國防部購買包含由美國供應商或美國盟國製造的印刷電路板的產品，這些印刷電路板是武器系統和其他電信和數據通信或其他關鍵商業的一部分。國防部使用的應用程序，從 2027 年 1 月開始。由於我們在北美的強大足跡，這應該為 TTM 提供長期利益。

In 2022, we expect growth to be in line with market projections of 2% to 4%, driven by the defense side of our business as we expect a slow recovery in our commercial aerospace segment. Automotive sales represented 19% of total sales during the fourth quarter of 2021 compared to 17% in the year ago quarter and 18% during the third quarter of 2021. Automotive grew 30% year-over-year. We are aware that the shortage of semiconductors has been limiting automotive production, but this phenomenon has not directly affected our business, since we do not purchase semiconductors. However, we will continue to monitor the situation closely. We expect automotive to contribute 20% of total sales in the first quarter. For the full year, automotive increased 51% as supply and demand rebounded after COVID impacts in 2020. In 2021, advanced technology was 24% of our automotive end market compared to 26% in 2020. While our advanced technology revenues grew 41% year-on-year, our standard technologies grew even faster. In Q1, despite Chinese New Year, we are starting the year with solid year-on-year growth, and we expect the market in 2022 to be above longer-term forecasts of 3% to 6%.

在我們業務的國防方面，我們預計 2022 年的增長將與 2% 至 4% 的市場預測一致，因為我們預計我們的商業航空航天部門將緩慢復甦。 2021 年第四季度，汽車銷售額佔總銷售額的 19%，而去年同期為 17%，2021 年第三季度為 18%。汽車同比增長 30%。我們知道半導體短缺一直在限制汽車生產，但這種現象並沒有直接影響我們的業務，因為我們不採購半導體。但是，我們將繼續密切關注情況。我們預計汽車將在第一季度貢獻總銷售額的 20%。全年，隨著 2020 年 COVID 影響後供需反彈，汽車行業增長了 51%。2021 年，先進技術占我們汽車終端市場的 24%，而 2020 年為 26%。雖然我們的先進技術收入同比增長 41%-與去年同期相比，我們的標準技術增長更快。在第一季度，儘管農曆新年，但我們以穩健的同比增長開年，我們預計 2022 年的市場將高於 3% 至 6% 的長期預測。

The medical/industrial/instrumentation end market contributed 19% of our total sales in the fourth quarter compared to 16% in the year ago quarter and 20% in the third quarter of 2021. The MI&I market exceeded $100 million in Q4 revenue and performed much better than expectations as we saw broad-based strength across all segments. For the first quarter, we expect MI&I to be 18% of revenues with a continued strong demand environment. For the full year, MI&I grew 11% following 12% growth the previous year, well above trend line for 2 years in a row due to strength in our industrial customers in particular. In 2022, we expect growth to be in line with the 2% to 4% forecasts as these segments see moderated demand following the extraordinary strength of the past 2 years.

第四季度醫療/工業/儀器終端市場占我們總銷售額的 19%，而去年同期為 16%，2021 年第三季度為 20%。MI&I 市場第四季度收入超過 1 億美元，表現出色好於預期，因為我們看到所有細分市場的廣泛實力。對於第一季度，我們預計 MI&I 將佔收入的 18%，需求環境持續強勁。全年，MI&I 繼上一年增長 12% 後增長 11%，尤其是由於我們的工業客戶實力強勁，連續兩年遠高於趨勢線。我們預計 2022 年的增長將符合 2% 至 4% 的預測，因為這些細分市場在過去 2 年異常強勁之後需求放緩。

Networking/communications accounted for 16% of revenue during the fourth quarter of 2021. This compares to 16% in the fourth quarter of 2020 and 16% of revenue in the third quarter of 2021. We saw relative strength on a year-on-year basis in networking compared to telecom as the 5G build-out in China continues to be weak and as we made several strategic decisions to use our higher layer count capacity for data center and key networking customers. In Q1 we expect this end market to be 13% of revenue as telecom demand continues to be soft and due to supply constraints in networking. For the full year, networking/communications declined 0.3%, with strength in networking offset by weakness in telecom. We expect this market to grow but be below the longer-term forecasts of 5% to 8% growth in 2022 due to the anticipated soft start in the early part of the year.

網絡/通信佔 2021 年第四季度收入的 16%。相比之下，2020 年第四季度為 16%，2021 年第三季度為 16%。我們看到同比增長相對強勁由於中國的 5G 建設仍然薄弱，而且我們做出了幾項戰略決策，將我們的更高層數容量用於數據中心和關鍵網絡客戶，因此與電信相比，網絡基礎設施的基礎。由於電信需求持續疲軟以及網絡供應受限，我們預計第一季度終端市場將佔收入的 13%。全年，網絡/通信下降了 0.3%，網絡的優勢被電信的疲軟所抵消。我們預計這個市場將會增長，但由於預期在今年年初的軟啟動，2022 年的增長將低於 5% 至 8% 的長期預測。

Sales in the data center computing end market represented 15% of total sales in the fourth quarter compared to 13% in Q4 of 2020 and 14% in the third quarter of 2021. This end market was up 34% year-on-year, due primarily to growth from our data center customers. We expect revenues in this end market to represent approximately 15% of first quarter sales as strong data center demand continues to drive year-on-year growth. For the full year, data center computing grew 25% as we saw growth across our data center customers. In 2022, we expect to be above the forecasted end market growth of 1% to 3%, driven primarily by data center growth.

數據中心計算終端市場的銷售額在第四季度佔總銷售額的 15%，而 2020 年第四季度和 2021 年第三季度分別為 13% 和 14%。該終端市場同比增長 34%，原因是主要來自我們的數據中心客戶的增長。我們預計這一終端市場的收入將佔第一季度銷售額的 15% 左右，因為強勁的數據中心需求繼續推動同比增長。由於我們看到數據中心客戶的增長，全年數據中心計算增長了 25%。到 2022 年，我們預計最終市場增長率將高於 1% 至 3% 的預測，主要受數據中心增長的推動。

Next, I'll cover some of the details of the fourth quarter. All of the following operations metrics exclude the Mobility business unit and the 2 E-MS plants that we closed. This information is also available on Page 5 of our earnings presentation. During the quarter, our advanced technology business, which includes HDI, rigid flex, microelectronics and RF subsystems and components, accounted for approximately 31% of our revenue. This compares to approximately 31% in the year ago quarter and 29% in Q3. We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology capabilities in new programs and new markets.

接下來，我將介紹第四季度的一些細節。以下所有運營指標均不包括移動業務部門和我們關閉的 2 家 E-MS 工廠。此信息也可在我們的收益報告的第 5 頁上找到。在本季度，我們的先進技術業務（包括 HDI、剛撓性、微電子和射頻子系統和組件）約占我們收入的 31%。相比之下，去年同期約為 31%，第三季度約為 29%。我們將繼續尋求新的商業機會並增加客戶設計參與活動，這些活動將利用我們在新項目和新市場中的先進技術能力。

Capacity utilization in Asia Pacific was 88% in Q4 compared to 63% in the year ago quarter and 91% in Q3. Our overall capacity utilization in North America was 50% in Q4 compared to 58% in the year ago quarter and 50% in Q3. Our top 5 customers contributed 32% of total sales in the fourth quarter of 2021 compared to 28% in the third quarter of 2021. We had one customer above 10% in the quarter. At the end of Q4, our 90-day backlog, which is subject to cancellations, was $597.2 million compared to $483.9 million at the end of the fourth quarter last year and $594.8 million at the end of Q3.

第四季度亞太地區的產能利用率為 88%，而去年同期為 63%，第三季度為 91%。我們在北美的整體產能利用率在第四季度為 50%，而去年同期為 58%，第三季度為 50%。我們的前 5 名客戶在 2021 年第四季度貢獻了總銷售額的 32%，而在 2021 年第三季度這一比例為 28%。本季度我們有一個客戶的銷售額超過 10%。在第四季度末，我們的 90 天積壓訂單（可能被取消）為 5.972 億美元，而去年第四季度末為 4.839 億美元，第三季度末為 5.948 億美元。

Our PCB book-to-bill ratio was 1.20 for the 3 months ending January 3. Our backlog is higher than our revenue forecast due to uncertainty around both labor and supply chain challenges for our customers and ourselves.

截至 1 月 3 日的 3 個月，我們的 PCB 訂單出貨比為 1.20。由於我們的客戶和我們自己面臨勞動力和供應鏈挑戰的不確定性，我們的積壓訂單高於我們的收入預測。

I'd like to conclude by again thanking our employees for continuing to contribute to TTM and our critical mission of inspiring innovation with our customers. Despite the raw materials and labor-related challenges we are facing, our business performed better than we expected as a direct result of our employees' and our supply chain partners' concerted efforts to support TTM and our customers.

最後，我想再次感謝我們的員工繼續為迅達做出貢獻，並感謝我們與客戶一起激發創新的關鍵使命。儘管我們面臨原材料和勞動力相關的挑戰，但由於我們的員工和供應鏈合作夥伴齊心協力支持迅達和我們的客戶，我們的業務表現比我們預期的要好。

Now Todd will review our financial performance for the fourth quarter. Todd?

現在托德將審查我們第四季度的財務業績。托德?

Thanks, Tom, and good afternoon, everyone. I'll be reviewing our financial results for the fourth quarter and some highlights for the year, which are also shown in the press release distributed today as well as on Slide 7 of our earnings presentation, which is posted on our website.

謝謝，湯姆，大家下午好。我將回顧我們第四季度的財務業績和今年的一些亮點，這些內容也顯示在今天分發的新聞稿以及我們網站上發布的收益演示文稿的幻燈片 7 中。

For the fourth quarter, net sales were $598.1 million compared to $523.8 million from continuing operations in the fourth quarter of 2020. The year-over-year increase in revenue was due to strong growth in our commercial end markets, which more than offset a modest decline in our aerospace and defense market due to commercial aerospace softness and production challenges in North America. In addition, there was a headwind from the closure of our 2 E-MS facilities, which generated $23.7 million in revenue in the year ago quarter and no revenues in the current year quarter. Excluding the impact of the E-MS closures, revenues of our ongoing business grew 19.6% year-on-year.

第四季度的淨銷售額為 5.981 億美元，而 2020 年第四季度持續運營的淨銷售額為 5.238 億美元。收入的同比增長是由於我們的商業終端市場的強勁增長，這抵消了適度的增長由於北美商業航空航天的疲軟和生產挑戰，我們的航空航天和國防市場下滑。此外，我們的 2 個 E-MS 設施的關閉也帶來了不利影響，該設施在去年同期產生了 2370 萬美元的收入，而在本年度季度沒有收入。排除 E-MS 關閉的影響，我們正在進行的業務收入同比增長 19.6%。

For the full year, revenues grew 10.9% driven by our automotive, data center computing and medical, industrial and instrumentation end markets. Both the fourth quarter and the full year 2021 numbers include an extra week when compared to the comparable periods in 2020. That extra week contributed approximately $42 million of revenue.

全年，在我們的汽車、數據中心計算以及醫療、工業和儀器儀表終端市場的推動下，收入增長了 10.9%。與 2020 年同期相比，第四季度和 2021 年全年的數字都包括額外的一周。額外的一周貢獻了大約 4200 萬美元的收入。

GAAP operating income for the fourth quarter of 2021 and was $33.1 million compared to $29.2 million in the fourth quarter of 2020. On a GAAP basis, net income for the fourth quarter of 2021 was $8.4 million or $0.08 per diluted share. This compares to net income of $39 million or $0.34 per diluted share in the fourth quarter last year.

2021 年第四季度的 GAAP 營業收入為 3,310 萬美元，而 2020 年第四季度為 2,920 萬美元。按公認會計原則計算，2021 年第四季度的淨收入為 840 萬美元或稀釋後每股收益 0.08 美元。相比之下，去年第四季度的淨收入為 3900 萬美元或每股攤薄收益 0.34 美元。

The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP performance excludes our divested Mobility business unit, nonroutine tax items, M&A-related costs, restructuring costs, certain noncash expense items and other unusual or infrequent items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate comparisons with expectations and prior periods.

我的其餘評論將集中在我們的非公認會計原則財務業績上。我們的非公認會計準則業績不包括我們剝離的移動業務部門、非常規稅務項目、併購相關成本、重組成本、某些非現金費用項目和其他不尋常或不常見的項目。我們提供非公認會計準則財務信息，以使投資者能夠通過管理層的眼光看待公司，並便於與預期和前期進行比較。

Gross margin in the fourth quarter was 16.7% compared to 17.5% in the fourth quarter of 2020. The year-on-year decline was largely due to labor and production challenges in North America.

第四季度毛利率為 16.7%，而 2020 年第四季度為 17.5%。同比下降主要是由於北美的勞動力和生產挑戰。

During the quarter, we did experience significant material cost increases, but we were able to substantially mitigate the profit impact of those increases through customer price increases and manufacturing efficiencies.

在本季度，我們確實經歷了顯著的材料成本增加，但我們能夠通過客戶價格上漲和製造效率大幅減輕這些增加對利潤的影響。

Selling and marketing expense was $15.6 million in the fourth quarter or 2.6% of net sales versus $15.2 million or 2.9% of net sales a year ago.

第四季度的銷售和營銷費用為 1560 萬美元，占淨銷售額的 2.6%，而去年同期為 1520 萬美元，占淨銷售額的 2.9%。

Fourth quarter G&A expense was $30.4 million or 5.1% of net sales compared to $24.4 million or 4.7% of net sales in the same quarter a year ago. In the fourth quarter of 2021, R&D was $4.8 million or 0.8% of revenues compared to $4.6 million or 0.9% in the year ago quarter.

第四季度的 G&A 費用為 3040 萬美元，占淨銷售額的 5.1%，而去年同期為 2440 萬美元，占淨銷售額的 4.7%。 2021 年第四季度，研發為 480 萬美元或占收入的 0.8%，而去年同期為 460 萬美元或 0.9%。

Our operating margin in Q4 was 8.2%. This compares to 9% in the same quarter last year. Interest expense was $11.2 million in the fourth quarter, a decrease of $0.4 million from the same quarter last year, due primarily to lower levels of debt as we repaid our $250 million convertible bond in December of 2020, partially offset by the extra week of expense in the current quarter.

我們第四季度的營業利潤率為 8.2%。相比之下，去年同期為 9%。第四季度的利息支出為 1120 萬美元，比去年同期減少 40 萬美元，這主要是由於我們在 2020 年 12 月償還了 2.5 億美元的可轉換債券時債務水平降低，部分被額外一周的支出所抵消在當前季度。

During the quarter, there was a negative $2.5 million foreign exchange impact below the operating line. Government incentives and interest income reduced this to a negative $1.1 million or $0.01 impact on EPS. This compares to a loss of $1.9 million or $0.02 of EPS in Q4 of last year. Our effective tax rate was 1.6% in the fourth quarter, resulting in tax expense of $0.6 million. This compares to a tax benefit in the prior year of $6.4 million or $0.06 per share.

本季度，在運營線以下產生了 250 萬美元的負面外匯影響。政府激勵措施和利息收入將其減少到對每股收益的負 110 萬美元或 0.01 美元的影響。相比之下，去年第四季度虧損 190 萬美元或每股收益 0.02 美元。我們第四季度的有效稅率為 1.6%，導致稅收支出為 60 萬美元。相比之下，上一年的稅收優惠為 640 萬美元或每股 0.06 美元。

Fourth quarter net income was $36.2 million or $0.34 per diluted share. This compares to fourth quarter 2020 net income of $40.2 million or $0.37 per diluted share. For the full year, net income was $138 million or $1.28 per diluted share compared to $116.7 million or $1.10 per diluted share last year.

第四季度淨收入為 3620 萬美元或每股攤薄收益 0.34 美元。相比之下，2020 年第四季度的淨收入為 4020 萬美元或每股攤薄收益 0.37 美元。全年淨收入為 1.38 億美元或每股攤薄收益 1.28 美元，而去年為 1.167 億美元或每股攤薄收益 1.10 美元。

Adjusted EBITDA for the fourth quarter was $70.4 million or 11.8% of net sales compared with fourth quarter 2020 adjusted EBITDA of $68.2 million or 13% of net sales. Depreciation for the quarter was $22.2 million. Net capital spending for the quarter was $19.5 million. Cash flow from operations was $62.4 million. And for the full year, cash flow from operations was $176.6 million.

第四季度調整後 EBITDA 為 7040 萬美元，占淨銷售額的 11.8%，而 2020 年第四季度調整後 EBITDA 為 6820 萬美元，占淨銷售額的 13%。本季度折舊為 2220 萬美元。本季度的淨資本支出為 1950 萬美元。運營現金流為 6240 萬美元。全年運營現金流為 1.766 億美元。

Our balance sheet and liquidity positions remain very strong. Cash and cash equivalents at the end of the fourth quarter of 2021 were $537.7 million, and our net debt divided by last 12 months' EBITDA was 1.4x.

我們的資產負債表和流動性狀況仍然非常強勁。 2021 年第四季度末的現金和現金等價物為 5.377 億美元，我們的淨債務除以過去 12 個月的 EBITDA 為 1.4 倍。

During the fourth quarter, we repurchased 2.2 million shares of our common stock under our previously announced $100 million stock repurchase program at an average price of $13.47 per share, for a total expenditure of $29.6 million. For the year, we have spent a total of $64.6 million for stock repurchases to buy back 4.7 million shares.

在第四季度，我們根據之前宣布的 1 億美元股票回購計劃以每股 13.47 美元的平均價格回購了 220 萬股普通股，總支出為 2960 萬美元。全年，我們總共花費了 6460 萬美元進行股票回購，回購了 470 萬股股票。

Now I'd like to turn to our guidance for the first quarter. As Tom stated earlier, our first quarter sees normal seasonality associated with Chinese New Year, and this year the first quarter has 1 less week than our fourth quarter. In addition, we are adjusting the compensation for our employees in North America to improve our competitiveness. While we are increasing prices to balance these higher costs, these increases won't have a significant impact until the second half of the year as we work through our existing backlog. Given that, we expect total revenue for the first quarter of 2022 to be in the range of $540 million to $580 million. And we expect non-GAAP earnings to be in the range of $0.20 to $0.26 per diluted share. The EPS forecast is based on a diluted share count of approximately 105 million shares. Our share count guidance includes dilutive securities such as options and RSUs, but no shares associated with our warrants since all of those have settled now.

現在我想談談我們對第一季度的指導。正如湯姆之前所說，我們的第一季度看到與農曆新年相關的正常季節性，今年第一季度比我們的第四季度少 1 週。此外，我們正在調整北美員工的薪酬，以提高我們的競爭力。雖然我們正在提高價格以平衡這些較高的成本，但在我們處理現有的積壓訂單之前，這些上漲直到今年下半年才會產生重大影響。鑑於此，我們預計 2022 年第一季度的總收入將在 5.4 億美元至 5.8 億美元之間。我們預計非 GAAP 收益將在每股攤薄收益 0.20 美元至 0.26 美元之間。每股收益預測基於約 1.05 億股的稀釋後股票數量。我們的股票數量指導包括期權和 RSU 等稀釋性證券，但沒有與我們的認股權證相關的股票，因為所有這些股票現在都已結算。

We expect that SG&A expense will be about 8.5% of revenue in the first quarter and R&D to be about 0.9% of revenue. We expect interest expense to total approximately $11 million. And finally, we estimate our effective tax rate to be between 12% and 18%. To assist you in developing your financial models, we offer the following additional information.

我們預計 SG&A 費用將佔第一季度收入的 8.5% 左右，研發費用將佔收入的 0.9% 左右。我們預計利息支出總額約為 1100 萬美元。最後，我們估計我們的有效稅率在 12% 到 18% 之間。為了幫助您開發財務模型，我們提供以下附加信息。

During the first quarter, we expect to record amortization of intangibles of about $9.7 million, stock-based compensation expense of about $4.8 million, noncash interest expense of approximately $0.5 million, and we estimate depreciation expense will be approximately $21.3 million.

在第一季度，我們預計無形資產攤銷約為 970 萬美元，股票補償費用約為 480 萬美元，非現金利息費用約為 50 萬美元，我們估計折舊費用約為 2130 萬美元。

Finally, I'd like to announce that we will be participating virtually in the Cowen Aerospace and Defense Industrials Conference tomorrow and the JPMorgan High Yield & Leveraged Finance Conference on March 1.

最後，我想宣布，我們將參加明天的 Cowen 航空航天和國防工業會議以及 3 月 1 日的摩根大通高收益和槓桿金融會議。

That concludes our prepared remarks. And now I'd like to open the line for questions. Keith?

我們準備好的發言到此結束。現在我想打開電話提問。基思？

(Operator Instructions) We'll take our first question from Srinivas Pajjuri with SMBC Nikko Securities.

（操作員說明）我們將回答 SMBC Nikko Securities 的 Srinivas Pajjuri 提出的第一個問題。

So I guess, Todd or Tom, as we look out to the first half, you're guiding for profitability to decline, which is not a surprise given the cost inflation that you talked about. But as we go into second half, you did mention that your price increases will kick in. Do you have a target profitability as we go through the second half? And how long it might take for you to get back to whatever kind of the normalized rate is?

所以我想，托德或湯姆，當我們展望上半年時，你正在引導盈利能力下降，考慮到你談到的成本通脹，這並不令人意外。但是當我們進入下半年時，您確實提到您的價格將開始上漲。在我們度過下半年時，您是否有目標盈利能力？您可能需要多長時間才能恢復到正常化率？

I'll try to answer that, and Tom can add to it if he feels so inclined. But let me just go back and talk about where we've come from, right? In 2021, very, very challenging year with all the material cost increases, supply chain challenges that we witnessed. We had a lot of growth in the cost of our materials that go into our product. And we worked very hard -- we've talked about this over the last few quarters -- to mitigate that and to adjust our pricing model, and we talked extensively about how we do that. And I'm pleased to say that we've pretty well gotten there here by the end of the year, which was our hope and expectation, only to find now that labor is raising its head from an inflation perspective, and we're having to deal with that. We've taken actions. We've been proactive on this one. But as noted, our backlog is going to take a little bit of time to work through, and so those price increases really don't become effective until later in the year. So we're going to have -- we're going to incur the cost inflation starting in Q1, but later in the year we expect to have that mitigated through pricing as well as ongoing initiatives that we have internally to be more efficient.

我會試著回答這個問題，如果湯姆願意，他可以補充。但是讓我回去談談我們來自哪裡，對吧？ 2021 年是非常非常具有挑戰性的一年，我們目睹了所有材料成本的增加和供應鏈挑戰。我們產品的材料成本大幅增長。我們非常努力地工作——我們在過去幾個季度已經討論過這個問題——以緩解這種情況並調整我們的定價模式，我們廣泛討論了我們如何做到這一點。我很高興地說，到今年年底我們已經很好地到達了那裡，這是我們的希望和期望，只是現在發現從通貨膨脹的角度來看，勞動力正在抬頭，我們正在處理那個。我們已經採取了行動。我們在這方面一直很積極。但如前所述，我們的積壓訂單需要一點時間才能完成，因此這些價格上漲實際上要到今年晚些時候才會生效。因此，我們將 - 我們將從第一季度開始招致成本膨脹，但在今年晚些時候，我們希望通過定價以及我們內部提高效率的持續舉措來緩解這種情況。

So in terms of expectations, we are looking to get back to a more normal position later in the year, absent some other unforeseen circumstances. But we've been through a lot for the last year, as Tom highlighted. And our team has done a really good job of fighting through all of this. And we have a little bit more to go, but I think we've seen what we need to do. And at this point, we have a plan that will get us in a much healthier position by the second half of the year.

因此，就預期而言，我們希望在今年晚些時候恢復到更正常的位置，而不會出現其他一些不可預見的情況。但正如湯姆強調的那樣，去年我們經歷了很多。我們的團隊在克服所有這些方面做得非常好。我們還有更多工作要做，但我認為我們已經看到了我們需要做的事情。在這一點上，我們有一個計劃，將在今年下半年讓我們處於更健康的位置。

Yes. And the only thing I'd add, just to give a little bit more color on the labor adjustments that we will be taking, this is actually part of a longer-term process that we launched after the Anaren acquisition. We began a project related to the leveling -- global leveling of our organization and our compensation as well as responsibilities and making sure that we had strong global alignment. As an outgrowth of that process, we're now looking at a situation in North America where we need to make adjustments. And those adjustments designed to really -- to make sure, ensure that TTM is competitive and competitive for the long term. But I do want to highlight, this has been a process in terms of looking at our overall levels. We're excited about this, where we stand on this project, being in the implementation phase now coming up. And then being able to offer our employees a much better-defined road map in terms of career development that offers them global opportunities. So this really is -- it's a big move on our -- on TTM's part, something that we're excited about.

是的。我唯一要補充的是，為了給我們將要進行的勞動力調整多一點色彩，這實際上是我們在收購 Anaren 後啟動的長期流程的一部分。我們開始了一個與平衡相關的項目——我們組織的全球平衡以及我們的薪酬和責任，並確保我們具有強大的全球一致性。作為該過程的產物，我們現在正在研究北美的情況，我們需要進行調整。這些調整旨在真正確保 TTM 在長期內具有競爭力和競爭力。但我確實想強調，就我們整體水平而言，這是一個過程。我們對此感到興奮，我們站在這個項目上，現在正處於實施階段。然後能夠為我們的員工提供更明確的職業發展路線圖，為他們提供全球機會。所以這真的是 - 這是我們的一個重大舉措 - 就 TTM 而言，我們對此感到興奮。

Got it. That makes total sense. And then one question about, again, pricing -- potential price increases. I would suspect that that will have some impact or some beneficial impact on your top line growth as well as we go into second half. And when I look at your annual guidance by segment, it doesn't look like you're changing a whole lot here, generally consistent with what you've been telling us. So I'm just curious, are you just being somewhat conservative here given the potential price increases as we go into second half?

知道了。這完全有道理。然後還有一個關於定價的問題——潛在的價格上漲。我懷疑這將對您的收入增長以及我們進入下半年產生一些影響或一些有益的影響。當我按部分查看您的年度指導時，看起來您在這裡並沒有發生很大變化，通常與您告訴我們的一致。所以我只是好奇，考慮到我們進入下半年的潛在價格上漲，你是不是有點保守？

Yes. What I would say there, and as we talk through the end markets, I'm sure, later in the call, we'll go through this, but if you certainly -- we benefited from strong growth this past year, being at that close to 11% level. Certainly a little -- a portion of that were price adjustment related, but also really driven by our customer demand. And I have to say by our -- particularly our Asia side of the house and the ability to maximize output there.

是的。我會在那裡說什麼，當我們討論終端市場時，我敢肯定，稍後在電話會議中，我們會經歷這個，但如果你確定 - 我們從過去一年的強勁增長中受益，當時接近 11% 的水平。當然有一點——其中一部分與價格調整有關，但也確實是由我們的客戶需求驅動的。我不得不說我們的 - 特別是我們在亞洲的一面以及在那裡最大化產出的能力。

As we look at this year, I think you're right to point out that we really don't incorporate the pricing adjustments as much as we look at real demand. And so we're still excited to be looking at a situation. I think if you're looking at, again, returning to that solid mid-single-digit growth rate, which is, given our mix of business, is where we'd like to be traditionally, particularly coming off of an elevated growth year. So again, yes, I think there's potentially a portion of that that we're missing, but really solid growth that we foresee here.

正如我們今年所看到的，我認為您指出我們確實沒有像關注實際需求那樣多地考慮定價調整是對的。所以我們仍然很高興能看到這種情況。我認為，如果您再次考慮恢復到穩定的中個位數增長率，考慮到我們的業務組合，這是我們傳統上希望達到的水平，尤其是在高增長的一年之後.再說一次，是的，我認為我們可能缺少其中的一部分，但我們在這裡預見到的真正穩健的增長。

We'll take our next question from Jim Ricchiuti with Needham & Company.

我們將向 Needham & Company 的 Jim Ricchiuti 提出下一個問題。

I'm wondering if you're seeing any -- putting aside the labor challenges, I'm wondering if you're seeing any signs of costs stabilizing in other areas of the business? Or is this still a case where you may be having to react as you go through the next 1 to 2 quarters and potentially have to take other pricing actions?

我想知道您是否看到任何 - 撇開勞動力挑戰不談，我想知道您是否看到其他業務領域成本穩定的跡象？或者這仍然是您在接下來的 1 到 2 個季度可能不得不做出反應並可能不得不採取其他定價措施的情況？

Yes. So Jim, I think we have seen a stabilization, in fact, material prices generally stabilizing at high levels. This last quarter, we did see some increase in some of the chemical-related inputs in our China facilities. We worked our way through that. We have -- we do see elevated electricity costs here in the winter, again, primarily in China. But those are relatively minor compared to laminate -- the laminate situation, which of course is our major raw material. And overall, I would say that, again, high levels, levels that we certainly hope will come down over time, but at least a stabilizing trend there.

是的。所以吉姆，我認為我們已經看到了穩定，事實上，材料價格普遍穩定在高位。上個季度，我們確實看到我們中國工廠的一些化學品相關投入有所增加。我們努力解決了這個問題。我們有——我們確實看到這裡冬天的電費上漲了，同樣，主要是在中國。但與層壓板相比，這些相對較小——層壓板的情況，這當然是我們的主要原材料。總的來說，我想說的是，高水平，我們當然希望隨著時間的推移而下降的水平，但至少是一個穩定的趨勢。

And Tom, just in light of the moving parts to the business, at least over the next couple of quarters and some of the actions you're taking, what can you say about some of the other activities you might be pursuing on the M&A side?

湯姆，就業務的動態部分而言，至少在接下來的幾個季度以及您正在採取的一些行動中，您對併購方面可能進行的其他一些活動有什麼看法?

Sure. Continuing to work that side of our strategic direction. And what I can say is, overall, the pipeline process that we have in place, still very active. And just to reiterate the strategic themes there, we're still looking to bolster our footprint outside of China and North America, looking at what we might be able to do in Europe, what we might be able to do in Southeast Asia. And then also looking at our -- particularly our RF position, strengthening our aerospace and defense business primarily, in that area is another major priority. So those priorities remain very much in place. Interesting, with the markets moving, we are in a period of a little bit of volatility. But hoping that that also means that we're going to see some more, I would say, from a valuation standpoint, realistic valuation expectations as we go forward.

當然。繼續在我們的戰略方向上工作。我能說的是，總的來說，我們現有的管道流程仍然非常活躍。只是為了重申那裡的戰略主題，我們仍在尋求加強我們在中國和北美以外的足跡，看看我們在歐洲可以做什麼，在東南亞可以做什麼。然後再看看我們的 - 特別是我們的射頻地位，主要加強我們的航空航天和國防業務，在該領域是另一個主要優先事項。因此，這些優先事項仍然非常有效。有趣的是，隨著市場的變化，我們正處於一個有點波動的時期。但希望這也意味著我們會看到更多，我想說，從估值的角度來看，隨著我們前進，我們會看到更現實的估值預期。

(Operator Instructions) We'll take our next question from Mike Crawford with B. Riley Securities.

（操作員說明）我們將向 B. Riley Securities 的 Mike Crawford 提出下一個問題。

Just a follow-up on the M&A question. Given the $20 billion Intel's investing in fabs in Ohio and other OEMs building out U.S. footprint, how does that change your calculus regarding your own footprint in the U.S.?

只是對併購問題的跟進。鑑於英特爾在俄亥俄州的晶圓廠投資 200 億美元，以及其他 OEM 在美國建立業務，這將如何改變您對自己在美國的業務的計算？

Right. Yes. So a few things there. I think, first of all, we love our position in North America. And as you know, Mike, it's a position that we use both for defense customers, and I would say primarily for defense customers, but also for some of the prototyping and pilot production requirements of our commercial customers, particularly in the MII area and then also in the computing and communications area. So now you start fast-forwarding to a time, as we start to see reshoring initiatives occur with our customer base, we will be pursuing absolutely the dialogue around their requirements in North America, and that will be an effort that we continue going forward. That requires an understanding on our customers' part that there is a differential -- a cost differential even with the more advanced capabilities around printed circuit boards, with the material supply and infrastructure being primarily in Asia, there is a cost differential associated with production in North America.

正確的。是的。所以有幾件事。我認為，首先，我們喜歡我們在北美的地位。如你所知，邁克，這是我們為國防客戶使用的職位，我主要是為國防客戶使用，但也為我們的商業客戶的一些原型設計和試生產要求，特別是在 MII 領域，然後也在計算和通信領域。因此，現在您開始快進到某個時間，當我們開始看到我們的客戶群開始實施回流計劃時，我們將絕對圍繞他們在北美的需求進行對話，這將是我們繼續前進的努力。這需要我們的客戶了解存在差異 - 即使印刷電路板具有更先進的能力，成本差異，材料供應和基礎設施主要在亞洲，與生產相關的成本差異北美。

As I mentioned in my comments, the fact that the NDAA came through with certainly an emphasis on, let's say, non-China production, and as we go forward with potential interest in supply chain resiliency from our customer base, I think we're going to start seeing a shift in views in regards to North America production. But I will tell you that that comes with an acceptance of cost differential. And so active discussions there will continue, and we'll see where it takes us.

正如我在評論中提到的那樣，NDAA 的通過肯定會強調非中國生產，並且隨著我們對客戶群對供應鏈彈性的潛在興趣向前推進，我認為我們是將開始看到對北美生產的看法發生轉變。但我會告訴你，這伴隨著對成本差異的接受。因此，那裡的積極討論將繼續進行，我們將看看它會把我們帶到哪裡。

And then I know you mentioned RF for aerospace and defense, but you also talked about your high layer count capacity in North America already being somewhat kind of allocated to more strategic verticals. Does that mean that there would be some room to add to that high layer count position in North America just through internal investment or...

然後我知道您提到了用於航空航天和國防的射頻，但您也談到了您在北美的高層計數能力已經在某種程度上分配給更具戰略意義的垂直領域。這是否意味著僅通過內部投資或...

Right. So when we talk about the demands for data center customers and for networking customers, you really are looking at that high layer count requirement. And you're right, we had to make some allocation decisions, not just around North America, it's really around our total capacity. And those are difficult. On the other hand, we have a pretty clear strategy around continuing to move towards the higher -- more advanced technologies, the higher layer count requirements. And so from that standpoint, where we've been shifting is towards markets and towards customer needs associated with that. Now that's being driven by new chipsets primarily, new chipsets demanding more dense circuitry to support those chips. And so we expect that trend to continue.

正確的。因此，當我們談論對數據中心客戶和網絡客戶的需求時，您實際上是在考慮高層數要求。你是對的，我們必須做出一些分配決定，不僅僅是在北美，這實際上是圍繞我們的總容量。而這些都很難。另一方面，我們有一個非常明確的戰略，即繼續朝著更高——更先進的技術，更高的層數要求邁進。因此，從這個角度來看，我們一直在轉向市場和與之相關的客戶需求。現在這主要是由新的芯片組驅動的，新的芯片組需要更密集的電路來支持這些芯片。因此，我們預計這種趨勢將繼續下去。

As it relates to where do we put the capacity, absolutely, again, if we see the Northern American component become more and more important, and if our customers really need to see that capacity for an automated capability that -- and are willing and understand the cost differential, then at that point, yes, that makes -- North America makes sense. In the meantime, other regions may make sense as well to service those supply chain resiliency requirements. So yes, I think absolutely, we'll continue to look at the footprint as we look at supporting that customer base.

因為它涉及到我們將容量放在哪裡，絕對，再次，如果我們看到北美組件變得越來越重要，並且如果我們的客戶真的需要看到自動化能力的容量 - 並且願意並理解成本差異，那麼在這一點上，是的，這使得 - 北美是有道理的。與此同時，其他地區也可以滿足這些供應鏈彈性要求。所以是的，我認為絕對，我們將繼續關注足跡，因為我們著眼於支持該客戶群。

And then last question is, you have this [production-to-record] metric you track in the automotive vertical, that, was it, $629 million in program wins in 2020. Do you have that number for '21?

最後一個問題是，你有這個在汽車垂直領域跟踪的 [生產到記錄] 指標，是嗎，2020 年的項目贏額為 6.29 億美元。你有 21 年的這個數字嗎？

I sure do. Yes. So as we look at automotive, let me give you just some of the numbers from the most recent quarter. So we had total -- let's see, -- just want to make sure I get my numbers right. So we had 26 design wins, $146 million in Q4. That compares to the previous year, we had 35 design wins but only $81 million. And so very strong quarter. Now if you step back and you say, okay, let's look at the fiscal year metric, 147 design wins for about $532 million, that compares to an even stronger 2020, which was at $629 million, and then a 2019 figure that was at $475 million.

我當然會。是的。所以當我們看汽車時，讓我給你最近一個季度的一些數字。所以我們有總數 - 讓我們看看 - 只是想確保我的數字是正確的。所以我們在第四季度贏得了 26 項設計勝利，價值 1.46 億美元。與前一年相比，我們贏得了 35 項設計大獎，但只有 8100 萬美元。如此強勁的季度。現在，如果您退後一步說，好吧，讓我們看一下財政年度指標，147 項設計勝出，約 5.32 億美元，相比之下，2020 年更強勁，為 6.29 億美元，然後是 2019 年的數字為 475 美元百萬。

So what we're seeing or what we saw in this past year in automotive growth, a portion of that is these programs that we won in 2019 and 2020 coming -- beginning their production, live. And what we will see in this coming year is 2020 and 2021 feeding into this coming year as we -- as our customers move into production. So it's a nice base to be positioned from, for sure.

因此，我們在過去一年中看到或看到的汽車增長，其中一部分是我們在 2019 年和 2020 年贏得的這些計劃即將到來——開始生產、直播。隨著我們的客戶投入生產，我們將在來年看到 2020 年和 2021 年進入來年。所以這是一個很好的定位基地，當然。

We'll take our next question from Matt Sheerin with Stifel.

我們將向 Stifel 的 Matt Sheerin 提出下一個問題。

Just follow-up questions, particularly on the gross margin. How should we think about -- again, I know this was asked earlier, but as we get through the year, you've got the costs that you're passing along, sounds like material -- raw material prices are starting to stabilize. Could we expect margin -- gross margin expansion in the back half versus the back half of fiscal '21?

只是後續問題，尤其是關於毛利率的問題。我們應該怎麼想——再說一遍，我知道之前有人問過這個問題，但是隨著我們度過這一年，你已經得到了傳遞的成本，聽起來像是材料——原材料價格開始穩定下來。我們是否可以預期利潤率——後半部分的毛利率與 21 財年後半部分相比有所擴大？

Matt, challenging question because it's hard to project that far out. But what I can do is -- let me help calibrate things a little bit for you, and for everybody else for that matter. Remember, Q1 here, as we're giving guidance for, is always our seasonally low quarter of the year because of Chinese New Year and the lost production and efficiencies that that drives. So that's something you've got to keep in mind year-over-year. So certainly, we would expect Q1 to be the lowest point of the year. And if you look at our pattern last year, it was consistent with that and has been for several years.

馬特，具有挑戰性的問題，因為很難投射到那麼遠。但我能做的是——讓我幫助你和其他人稍微調整一下。請記住，正如我們提供的指導一樣，這裡的第一季度始終是我們一年中的季節性低季度，因為農曆新年以及由此導致的生產和效率損失。因此，您必須逐年記住這一點。所以當然，我們預計第一季度將是今年的最低點。如果你看看我們去年的模式，它與此一致，並且已經持續了好幾年。

The big issue that we ran into that we're seeing in Q4 that we're addressing, that will impact us in the first half of this year from a negative standpoint, is really the North America labor situation. And Tom nicely described kind of the whole process that we're going through there. Just a sense of magnitude, in Q1 -- in the fourth quarter, that challenge impacted us by about 100 basis points. And in Q1, that will impact us more in the closer to the neighborhood of 100 or 120 to 150 basis points. So if we were able to solution that, which we believe we have a plan in place and we're executing that plan, that gives you some sense of mitigating that particular issue.

我們在第四季度遇到的一個大問題是我們正在解決的問題，這將從負面的角度影響我們今年上半年，實際上是北美的勞動力狀況。湯姆很好地描述了我們正在經歷的整個過程。只是在第一季度——在第四季度，這一挑戰影響了我們大約 100 個基點。在第一季度，這將在接近 100 或 120 到 150 個基點附近對我們產生更大的影響。因此，如果我們能夠解決這個問題，我們相信我們已經制定了計劃並且我們正在執行該計劃，這會給您一些減輕該特定問題的感覺。

Now there's a lot of other factors that play into margins, overall volume and revenue growth during the year and other things that can be favorable. And obviously, we hope we can avoid any more of those supply chain challenges that we've been seeing that hurt us so much in 2021. So I hope that helps give you a sense of direction at least and the order of magnitude of this labor challenge that we're working through right now.

現在還有很多其他因素會影響利潤率、全年的整體銷量和收入增長，以及其他可能有利的因素。顯然，我們希望我們能夠避免更多那些在 2021 年對我們造成如此嚴重傷害的供應鏈挑戰。所以我希望這至少能幫助你了解方向感和勞動力的數量級我們現在正在解決的挑戰。

Got it. And that's all a hit to COGS, right, not SG&A, those labor issues in North America, because it's mostly like factory jobs and...

知道了。這對 COGS 來說都是一個打擊，對，不是 SG&A，北美的那些勞工問題，因為它主要像工廠工作和......

Essentially, yes. I mean there's a minor amount in SG&A, but it's really too minor to talk about.

本質上，是的。我的意思是 SG&A 中的金額很小，但真的太小了，無法談論。

Yes. And I know you talked about the utilization rate of 50% in North America. And I know it's always significantly below Asia because of the nature of the products that you do, et cetera, but certainly well below where I think you want it to be. What's the optimal level? And where do you think you can get it between now and the end of the year?

是的。我知道你談到了北美 50% 的利用率。而且我知道由於您所做產品的性質等原因，它總是大大低於亞洲，但肯定遠低於我認為您想要的位置。最佳水平是多少？從現在到年底，您認為在哪裡可以獲得它？

So I can start out on that one, Todd, and then please jump in and supplement. The -- where we are, a good way to think about it, Matt, we're still where we were last quarter in terms of contribution of North America to revenue. So about 43% of our revenues coming out of North America production. Where we have been after the Mobility sale was 50%. So if you start thinking about it versus utilization, that may be a better way to think about it. We'd like to be -- as we get -- again, this is dependent on labor force, but as we start to shore up our labor force and bring that labor force into the plants, we need to bring that mix up again to 50-50. And that will -- again, I think both -- so, clearly help us on the margins, from a margin performance standpoint, because we'll be utilizing those facilities. We'd like to see -- to answer your question directly as well, we'd like to see operating utilization in North America above 60%. That's when we're really moving things through the plants with our high-mix/low-volume approach. And if we get much above those levels, then we have to start thinking about expansion.

所以我可以從那個開始，托德，然後請加入並補充。我們所處的位置，這是一個很好的思考方式，馬特，就北美對收入的貢獻而言，我們仍然是上個季度的水平。因此，我們大約 43% 的收入來自北美的生產。 Mobility 出售後，我們所處的位置是 50%。因此，如果您開始考慮它與利用率，這可能是一種更好的思考方式。我們希望——正如我們得到的——再次，這取決於勞動力，但是當我們開始支撐我們的勞動力並將勞動力帶入工廠時，我們需要再次將這種混合50-50。這將 - 再次，我認為兩者 - 所以，從利潤表現的角度來看，顯然有助於我們的利潤，因為我們將利用這些設施。我們希望看到 - 也直接回答您的問題，我們希望看到北美的運營利用率超過 60%。那是我們真正用我們的高混合/低容量方法在工廠中移動東西的時候。如果我們遠遠超過這些水平，那麼我們就必須開始考慮擴張。

And in terms of the impact on these labor issues on your business, and I know you talked about some headwinds, but is it pretty much across all your end markets, or mostly areas where you're doing, like you said, a high mix, lower volume, more complex stuff here in the U.S. like mil aero, or is it across the board where you're doing like NPI for networking, for instance?

就這些勞工問題對您的業務的影響而言，我知道您談到了一些不利因素，但它是否幾乎遍及您所有的終端市場，或者您正在做的大部分領域，就像您說的那樣，是一個高度混合，在美國，體積更小，更複雜的東西，比如 mil aero，還是像 NPI 一樣全面開展網絡工作？

Yes, yes. So the biggest weight -- absolutely aerospace and defense, of course, 100% of that is North America production -- or not 100%, but it's very close, because we do a little bit of commercial aerospace in China. But by far, above 90% is North America. The other end market that's affected by this is MII. We have several facilities that service the MII market, and that's mainly a quick turn, early development market and also sort of a niche market, if you will, for some of the applications. So that's a market that is dependent on North America production. And then a little bit going into data center and net/com. But that's primarily our Chippewa Falls facility, which -- so a fairly small part of the North America footprint.

是的是的。所以最大的重量——絕對是航空航天和國防，當然，其中 100% 是北美生產——或者不是 100%，但非常接近，因為我們在中國做了一點商業航空航天。但到目前為止，90% 以上是北美。受此影響的另一個終端市場是 MII。我們有幾個服務於 MII 市場的設施，這主要是一個快速轉變的早期開發市場，如果你願意的話，對於某些應用程序來說也是一個利基市場。所以這是一個依賴於北美生產的市場。然後一點點進入數據中心和網絡/com。但這主要是我們的奇普瓦瀑布工廠，它只是北美足蹟的一小部分。

Okay. And just lastly, your positive commentary on the data center. It sounds like you've got really good growth there. You're saying you expect to be above market. But I think your market growth is in sort of low to mid-single digits. Would you expect to do much better than that given the backlog and given the growth we've seen at those customers?

好的。最後，您對數據中心的正面評價。聽起來你在那裡的成長非常好。你是說你期望高於市場。但我認為您的市場增長處於中低個位數。考慮到積壓和我們在這些客戶中看到的增長，您是否期望做得比這更好？

We certainly would expect to do much better than that. That 1% to 3% is -- because it's -- the most visibility we have on that market growth is through our -- through the Prismark forecasts. And they include laptop and desktop monitors in that area. So that always puts a damper on data center clearly growing at higher rates.

我們當然希望做得比這更好。那 1% 到 3% 是 - 因為它是 - 我們對市場增長的最能見度是通過我們的 - 通過 Prismark 預測。它們包括該區域的筆記本電腦和台式機顯示器。因此，這總是會阻礙數據中心明顯以更高的速度增長。

We'll take our next question from Christian Schwab with Craig-Hallum Capital Group.

我們將向克雷格哈勒姆資本集團的克里斯蒂安施瓦布提出下一個問題。

Can you guys just help us understand the wage inflation in North America? What were you paying hourly labor in the blended -- I know by geography would be modestly different. But just to give us a rough idea, prepandemic, what you were paying and now what you're paying now on a go-forward basis?

你們能幫我們了解一下北美的工資通脹嗎？你在混合中支付的小時工是多少——我知道從地理位置來看會有所不同。但只是為了給我們一個粗略的想法，在大流行之前，你付出了什麼，現在你現在付出了什麼？

Maybe I can help characterize that for you. I think, again, we -- the move we're making is really in the context of structural changes we need to make in our overall compensation. So it's more than just the starting pay or simply the pay to the workforce. But having said that, you've seen the overall numbers, I think lately, 5% is the number I've been seeing for inflation this past year in terms of pay. But what I can tell you is for an hourly workforce, it's substantially above that. And we've been seeing north of 10% kind of increases over time or a year if you go back a year-on-year compare. So yes, substantial. And again, from a starting wage standpoint, I think you -- overall, you see a manufacturing moving from what was on average, let's just say, a $15 per hour kind of pay scale to closer and closer to that $20 level. So it's -- there has been a major move there for sure.

也許我可以幫助你描述這一點。我認為，再次，我們 - 我們正在採取的舉措確實是在我們需要在整體薪酬中進行的結構性改變的背景下。因此，這不僅僅是起薪或員工工資。但是話雖如此，你已經看到了總體數字，我認為最近，5% 是我在過去一年中看到的工資通脹數字。但我可以告訴你的是，對於一個小時工來說，它遠高於此。我們已經看到隨著時間的推移或一年的時間增加了 10% 以上的增長，如果你回到去年同期比較的話。所以，是的，實質性的。再說一次，從起薪的角度來看，我認為你 - 總體而言，你看到製造業從平均每小時 15 美元的工資等級向越來越接近 20 美元的水平發展。所以它 - 肯定有一個重大舉措。

Have you guys seen any pushback from any of your customers or as your order book or backlog for future revenue based on price increases due to not only raw materials, but obviously significant increases in labor costs. Have you seen any pushback from customers on that?

你們有沒有看到任何客戶的任何阻力，或者您的訂單簿或基於價格上漲的未來收入的積壓，這不僅是由於原材料的價格上漲，而且是勞動力成本的顯著增加。您是否看到客戶對此有任何反對意見？

I have yet to run into a customer that is really satisfied with us when we increase pricing. But having said that, the -- I think the reasons we're doing this are well documented. The raw material inflation that we've had to deal with, the labor situation, well understood by the customer base. There are programs that customers choose to move away from us at volume, if -- particularly if they don't see equivalent kind of price movement from our competition on the commercial side. But frankly, given where our utilization rates are for our commercial business and given the strength of the end-market demand, this is sort of a time where you actually -- it can be a bit of a relief, depending on the program. So what I would say is absolutely, we've had pushback around price increases, but also a general understanding of the environment that we are in right now.

當我們提高定價時，我還沒有遇到對我們真正滿意的客戶。但話雖如此，我認為我們這樣做的原因是有據可查的。我們必須應對的原材料通脹，勞動力狀況，客戶群都非常了解。有些項目是客戶選擇大量遠離我們的，如果——特別是如果他們沒有看到我們在商業方面的競爭中的同等價格變動。但坦率地說，考慮到我們商業業務的利用率以及終端市場需求的強勁程度，這實際上是一個你真正的時間——這可能會讓人鬆一口氣，具體取決於項目。所以我要說的是，我們對價格上漲有一定的抵制，但也對我們現在所處的環境有一個普遍的了解。

Yes, that makes sense. And then my last question, on the utilization rate in North America, which is -- sounds relatively very low. But given some of the complexity of some of the programs, is -- could you operate those facilities at 100% utilization, or is 100% utilization really a 75% or 80% utilization?

是的，這是有道理的。然後我的最後一個問題是關於北美的利用率，這聽起來相對非常低。但考慮到某些程序的一些複雜性，您能否以 100% 的利用率運行這些設施，或者 100% 的利用率真的是 75% 或 80% 的利用率？

Right. Yes. So the measure that we use for measuring utilization is based on plating capacity use. And that's the core process, right, in a printed circuit board facility. It's a great metric to use in measuring capacity utilization for a high-volume facility because that does tend to be a bottleneck area. When you move over to a North America facility, those bottlenecks will move around because of the high mix, low volume nature of the business that's coming into the plant. So you can have the bottlenecks in drill, you can have the bottleneck in inspection. They move around quite a bit.

正確的。是的。所以我們用來衡量利用率的衡量標準是基於電鍍能力的使用。這就是印刷電路板設備的核心流程。這是衡量大容量設施產能利用率的一個很好的指標，因為這往往是一個瓶頸區域。當您搬到北美工廠時，這些瓶頸將會轉移，因為進入工廠的業務具有高混合、低產量的性質。所以你可以有鑽孔的瓶頸，你可以有檢查的瓶頸。他們四處走動。

So there's always a need, because of the quick turn requirements and the -- and also this high mix, low volume nature of the requirements that we receive, to have excess capacity in place. And that's why we use a measure of -- really, if you start pushing much above 60%, at that point you've got to be thinking about capacity expansion of sorts. And certainly, if you hit 70%, at that point, that's the equivalent of being over 100% capacity. Of course, right now, what we're dealing with on the capacity utilization side is a labor shortage. That is -- it's not about the equipment right now, it's really about labor.

因此，由於快速周轉的要求以及我們收到的需求的這種高混合、低容量的性質，總是需要有足夠的產能。這就是為什麼我們使用衡量標準的原因——真的，如果你開始推動遠高於 60%，那麼你就必須考慮各種產能擴張。當然，如果你達到 70%，那時，這相當於超過 100% 的容量。當然，現在，我們在產能利用率方面正在處理的是勞動力短缺。也就是說——現在不是關於設備，而是關於勞動力。

We have no further questions in the queue. I would like to turn the conference back to Tom Edman for any additional or closing remarks.

我們在隊列中沒有其他問題。我想把會議轉回給湯姆埃德曼，以獲得任何補充或結束語。

All right. Thank you.

好的。謝謝你。

Yes, I'd just like to close by summarizing some of the points that I made earlier. First, we delivered revenues above the high end of our guidance, and that was despite some of the operational challenges that we covered. Second, our end market diversification is playing out: solid year-on-year growth of 19.6% for the quarter and 10.9% or almost 11% for the year. So very strong growth. Third, we used solid cash generation to continue to repurchase our stock. And finally, I'd just like to again thank our employees, our customers and you, our investors, for your continued support. Thank you very much.

是的，我只想總結一下我之前提出的一些觀點。首先，儘管我們涵蓋了一些運營挑戰，但我們的收入超過了我們指導的高端。其次，我們的終端市場多元化正在發揮作用：本季度同比增長 19.6%，全年增長 10.9% 或接近 11%。所以增長非常強勁。第三，我們利用穩定的現金產生來繼續回購我們的股票。最後，我想再次感謝我們的員工、客戶和投資者，感謝您一直以來的支持。非常感謝。

Ladies and gentlemen, this concludes today's conference. We appreciate your participation. You may now disconnect.

女士們，先生們，今天的會議到此結束。我們感謝您的參與。您現在可以斷開連接。