TTM Technologies Inc (TTMI) 2021 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, thank you for standing by. Welcome to the TTM Technologies' First Quarter 2021 Financial Results Conference Call. (Operator Instruction]

下午好，女士們先生們，謝謝你們的支持。歡迎參加 TTM Technologies 2021 年第一季財務業績電話會議。 （操作員說明）

As a reminder, this conference is being recorded today, April 28, 2021. I would now like to turn the conference over to Sameer Desai, TTM's Vice President of Corporate Development and Investor Relations to will now review TTM disclosure statement.

謹此提醒，本次會議將於今天（2021 年 4 月 28 日）進行錄製。

Thanks, Casey. 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 and 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 factors explained in our most recent annual report on Form 10-K and our other filings with the Securities and Exchange Commission.

謝謝，凱西。在開始之前，我想提醒大家，今天的電話會議包含 1995 年《私人證券和訴訟改革法案》含義內的前瞻性陳述，包括與 TTM 未來業務前景相關的陳述。由於一種或多種風險和不確定性，實際結果可能與這些前瞻性陳述有重大差異，包括我們最新的 10-K 表格年度報告以及我們向美國證券交易委員會提交的其他文件中解釋的因素。

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.

這些前瞻性陳述是基於管理階層截至本簡報發布之日的預期和假設。 TTM 不承擔公開更新或修改任何這些聲明的義務，無論是由於新資訊、未來事件或其他情況，除非法律要求。

Please refer to the disclosure regarding the risks that may affect TTM, which may be found in the report on Form 10-K, 10-Q, 8-K, the registration statement on S-4 and the company's other SEC filings.

請參閱有關可能影響 TTM 的風險的揭露，該揭露可在 10-K、10-Q、8-K 表格的報告、S-4 的註冊聲明以及公司其他 SEC 備案文件中找到。

We will also discuss on this call certain non-GAAP financial measures 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 is filed with the SEC and is available on TTM's website at www.ttm.com.

我們也會在這次電話會議上討論某些非公認會計準則財務指標，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，我們會指導您對公司新聞稿中包含的非 GAAP 與 GAAP 措施進行協調，該新聞稿已向 SEC 備案並可獲取請訪問TTM 網站www.ttm.com。

We have also posted on our web day slide deck, which we will refer to during our call.

我們還在網路日幻燈片上發布了內容，我們將在電話會議期間參考。

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 TTM 執行長 Tom Edman。請繼續，湯姆。

Thank you, Sameer. Good afternoon, and thank you for joining us for our first quarter 2021 conference call.

謝謝你，薩米爾。下午好，感謝您參加我們的 2021 年第一季電話會議。

I'll begin with a review of our business strategy, then an update on how COVID-19 has impacted our business, followed by highlights from the quarter and a discussion of our first quarter results.

我將首先回顧我們的業務策略，然後介紹新冠肺炎 (COVID-19) 對我們業務的影響，最後介紹本季度的亮點並討論我們第一季的業績。

Todd Schull, our CFO, will follow with an overview of our Q1 2021 financial performance and our Q2 2021 guidance. We will then open the call to your questions.

我們的財務長 Todd Schull 隨後將概述我們 2021 年第一季的財務表現和 2021 年第二季的指導。然後我們將開始電話詢問您的問題。

I am pleased to report that in the first quarter of 2021, TTM generated revenues and non-GAAP EPS above the midpoint guided range. All end markets performed better than guidance, while year-on-year growth was led by strength in the automotive and data center computing end markets.

我很高興地報告，2021 年第一季度，TTM 的營收和非 GAAP 每股盈餘均高於中點指引範圍。所有終端市場的表現均優於預期，而年成長則由汽車和資料中心計算終端市場的強勁帶動。

These results were achieved despite higher raw material costs and production inefficiencies due to COVID-19.

儘管由於 COVID-19 導致原材料成本上升和生產效率低下，但仍取得了這些成果。

The pandemic continues to create operational difficulties, macroeconomic uncertainty and employee concerns.

疫情持續造成營運困難、宏觀經濟不確定性和員工擔憂。

These challenges are currently compounded by increasing prices and lead times of copper clad laminates, or CCLs, a key raw material for the manufacturer in circuit boards.

目前，由於覆銅層壓板 (CCL) 的價格和交貨時間不斷增加，這些挑戰變得更加複雜，CCL 是電路板製造商的關鍵原材料。

CCLs are made from epoxy resin, glass cloth and copper foil, all of which pursuing limited supply as price increases. In addition, metals such as copper, gold and palladium are also used in our manufacturing process.

覆銅板由環氧樹脂、玻璃布和銅箔製成，隨著價格上漲，所有這些材料的供應量都有限。此外，我們的製造過程中也使用銅、金和鈀等金屬。

We are actively managing higher raw material costs through such measures as supplier diversification, ongoing operational efficiency efforts and quotation adjustments to mitigate the impact to TTM.

我們正在透過供應商多元化、持續提高營運效率和報價調整等措施積極管理更高的原材料成本，以減輕對 TTM 的影響。

I'm extremely proud of how TTM employees have worked deliver excellent performance despite the formidable challenges of this environment.

儘管面臨嚴峻的環境挑戰，迅達員工仍然表現出色，我對此感到非常自豪。

I would also like to highlight that in Q1, we generated solid cash flow from operations and our leverage remained at a comfortable 1.4x.

我還想強調的是，在第一季度，我們從營運中產生了穩定的現金流，並且我們的槓桿率保持在舒適的 1.4 倍。

Looking into Q2, I am optimistic that we are seeing healthy demand trends across virtually all of our end markets. Which is supported by our stronger-than-normal backlog coverage.

展望第二季度，我樂觀地認為，我們幾乎所有終端市場都看到了健康的需求趨勢。我們比正常水平更強的積壓覆蓋率支持了這一點。

Next, I would like to provide an update on our long-term strategy. 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.

接下來，我想介紹一下我們的長期策略的最新情況。 TTM 正在努力將我們的業務轉型為週期性更強、更具差異化的業務。我們相信，隨著時間的推移，投資者將獲得更穩定的成長、強勁的現金流表現和不斷提高的利潤率。

As part of the strategic transition, we sold our mobility business last year. As a reminder, our operating margins with mobility as part of our business in Q1 of 2020 were 5.8% and non-GAAP EPS of $0.18, which was greatly impacted by the seasonality of that business, among other factors.

作為策略轉型的一部分，我們去年出售了行動業務。需要提醒的是，2020 年第一季度，我們的行動業務營業利潤率為 5.8%，非 GAAP 每股收益為 0.18 美元，這很大程度上受到該業務季節性等因素的影響。

We are now able to generate more consistent cash flow and earnings with our strong set of technologies and broad exposure to longer cycle end markets.

憑藉我們強大的技術和對較長週期終端市場的廣泛接觸，我們現在能夠產生更穩定的現金流和收益。

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.

我們持續策略的關鍵部分是透過內部和收購增加與我們目前產品互補的能力和產品。

Looking forward, our balance sheet is in a strong position to pursue further acquisitions as well as to support our organic investment needs.

展望未來，我們的資產負債表處於有利地位，可以進一步收購並支持我們的有機投資需求。

I would also like to update you on the COVID situation. At the time of last quarter's conference call in February, we were seeing a surge in North America COVID-19 cases following the winter holidays, which we expected to have some impact on production.

我還想向您通報新冠肺炎疫情的最新情況。在 2 月召開上季度電話會議時，我們看到寒假後北美 COVID-19 病例激增，我們預計這將對生產產生一些影響。

Since then, cases in North America have dropped off, and as a result, we are seeing a significant reduction in new cases in our sites as well. We are hopeful that the vaccine rollout will further reduce new cases, and we are looking forward to being able to welcome customers and other important visitors back into our plants in the not-so-distant future.

從那時起，北美的病例有所減少，因此，我們發現我們站點的新病例也大幅減少。我們希望疫苗的推出將進一步減少新病例，並期待在不久的將來能夠歡迎客戶和其他重要訪客回到我們的工廠。

In the meantime, we will continue TTM's protective measures, such as masking, temperature checks and proper distancing across our facilities worldwide, along with routine internal communications to keep our employees informed.

同時，我們將繼續採取迅達的防護措施，例如在我們全球各地的設施中佩戴口罩、進行體溫檢查和保持適當的距離，以及定期進行內部溝通，以讓我們的員工了解情況。

Because of the stringent preventative measures in place and our culture of transparency and communications, COVID-19 has had less impact on our operations that might have been the case without these precautions.

由於採取了嚴格的預防措施以及我們的透明度和溝通文化，如果沒有這些預防措施，COVID-19 對我們營運的影響可能會較小。

Now I'd like to review our end markets. All historical end market disclosures exclude the mobility business unit and the 2 EMS plants, which halted production in December of 2020.

現在我想回顧一下我們的終端市場。所有歷史終端市場揭露均不包括行動業務部門和 2 個 EMS 工廠，這些工廠於 2020 年 12 月停止生產。

For more details on end market disclosures, please refer to Page 4 of our earnings presentation, which are posted on our site.

有關終端市場披露的更多詳細信息，請參閱我們網站上發布的收益報告第 4 頁。

The aerospace and defense end market represented 36% of total first quarter sales compared to 38% of Q1 2020 sales and 38% of sales in Q4 2020.

航空航太和國防終端市場佔第一季總銷售額的 36%，而 2020 年第一季銷售額為 38%，2020 年第四季銷售額為 38%。

We continued to experience a positive defense climate, with our A&D program backlog increasing to a record $694 million compared to $687 million in Q4. Q1 revenues were up 1% year-on-year as solid growth in defense more than offset sharp year-on-year declines in commercial aerospace.

我們繼續經歷積極的國防氣氛，我們的 A&D 計劃積壓從第四季度的 6.87 億美元增加到創紀錄的 6.94 億美元。第一季營收年增 1%，國防領域的穩健成長足以抵銷商用航空航太領域較去年同期大幅下滑的影響。

Growth in the defense market is a result of our strong strategic program alignment and key bookings for ongoing franchise programs. We saw significant bookings in the quarter for Northrop Grumman's AESA Radar Systems for the F-35 program.

國防市場的成長得益於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。我們在本季看到諾斯羅普格魯曼公司用於 F-35 專案的 AESA 雷達系統的大量預訂。

We expect sales in Q2 from this end market to represent about 34% of our total sales. Automotive sales represented 17% of total sales during the first quarter of 2021 compared to 13% in the year ago quarter and 17% during the fourth quarter of 2020.

我們預計第二季該終端市場的銷售額將占我們總銷售額的 34% 左右。 2021 年第一季汽車銷售佔總銷售量的 17%，去年同期為 13%，2020 年第四季為 17%。

Automotive grew almost 50% year-over-year and continued to grow sequentially despite a normally slow -- seasonal slower period for Chinese New Year. We are aware of the distorted semiconductors is currently letting automotive production. But this situation has not directly affected our business since we do not purchase semiconductors.

儘管農曆新年通常是季節性放緩時期，但汽車行業同比增長近 50%，並繼續環比增長。我們知道，目前汽車生產中的半導體產業已經發生了扭曲。但這種情況並沒有直接影響我們的業務，因為我們不購買半導體。

While we are monitoring the situation closely, to date, it has had a very limited indirect impact on our PCB demand. We expect automotive to contribute 17% of total sales in Q2.

雖然我們正在密切關注事態發展，但迄今為止，它對我們 PCB 需求的間接影響非常有限。我們預計第二季汽車銷售額將佔總銷售額的 17%。

The medical industrial instrumentation end market contributed 17% of our total sales in the first quarter compared to 19% in the year ago quarter and 16% in the fourth quarter of 2020.

醫療工業儀器終端市場占我們第一季總銷售額的 17%，而去年同期為 19%，2020 年第四季為 16%。

In Q1, instrumentation customers in the semiconductor capital equipment end market were stronger than expected. For the second quarter, we expect AMI&I to be 17% of revenues.

第一季度，半導體資本設備終端市場的儀器儀表客戶強於預期。對於第二季度，我們預計 AMI&I 將佔收入的 17%。

Networking communications accounted for 15% of revenue during the first quarter of 2021. This compares to 16% in the first quarter of 2020 and 16% of revenue in the fourth quarter of 2020.

2021 年第一季度，網路通訊佔營收的 15%。

We saw relative strength on a year-on-year basis in the networking segment compared to the telecom segment as the 5G build-out has been slower to ramp. In Q2, we expect the segment to be 16% of revenue.

由於 5G 建設進展緩慢，我們看到網路領域的同比表現相對較電信領域強勁。在第二季度，我們預計該部門將佔收入的 16%。

Sales in the data center computing end market represented 14% of total sales in the first quarter compared to 12% in Q1 of 2020 and 13% in the fourth quarter of 2020. This end market was up 24% year-on-year, due primarily to growth from our data center customers.

資料中心計算終端市場的銷售額佔第一季總銷售額的 14%，而 2020 年第一季為 12%，2020 年第四季為 13%。來自我們資料中心客戶的成長。

We expect revenues in this end market to represent approximately 14% of second quarter sales as data center continues to drive year-on-year growth.

由於資料中心持續推動年成長，我們預計該終端市場的營收將佔第二季銷售額的 14% 左右。

Please note that we have renamed this segment to better represent our customer mix and growth opportunities.

請注意，我們已重新命名該細分市場，以更好地代表我們的客戶組合和成長機會。

Next, I'll cover some details from the first quarter. All of the following operations' metrics exclude the mobility business unit and the 2 EMS plants that were closed. This information is also available on Page 5 of our earnings presentation.

接下來，我將介紹第一季的一些細節。以下所有營運指標均不包括行動業務部門和關閉的 2 家 EMS 工廠。此資訊也可在我們的收益簡報的第 5 頁上找到。

During the quarter, our advanced technology business, which includes HDI, rigid Flex and RF subsystems and components, accounted for approximately 31% of our revenue. This compares to approximately 28% in the year ago quarter and 31% in Q4.

本季度，我們的先進技術業務（包括 HDI、剛柔結合和射頻子系統及組件）約占我們收入的 31%。相比之下，去年同期約為 28%，第四季約為 31%。

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. Capacity utilization in Asia Pacific was 80% in Q1 compared to 52% in the year ago quarter and 63% in Q4.

我們將繼續尋求新的商機並增加客戶設計參與活動，這些活動將在新項目和新市場中利用我們的先進技術能力。第一季亞太地區的產能利用率為 80%，去年同期為 52%，第四季為 63%。

Our overall capacity utilization in North America was 55% in Q1 compared to 67% in the year ago quarter and 58% in Q4.

第一季我們北美地區的整體產能利用率為 55%，去年同期為 67%，第四季為 58%。

Our top 5 customers contributed 33% of total sales in the first quarter of 2021 compared to 34% in the fourth quarter of 2020.

我們的前 5 名客戶貢獻了 2021 年第一季總銷售額的 33%，而 2020 年第四季為 34%。

Our largest customer accounted for 13% of sales in the first quarter. At the end of Q1, our 90-day backlog, which is subject to cancellations, was $540.5 million compared to $470.8 million at the end of the first quarter of last year and $483.9 million at the end of Q4. Our PCB book-to-bill ratio was 1.2x for the 3 months ending March 29.

我們最大的客戶佔第一季銷售額的13%。截至第一季末，我們的 90 天積壓訂單（可能被取消）為 5.405 億美元，而去年第一季末為 4.708 億美元，第四季末為 4.839 億美元。截至 3 月 29 日的 3 個月，我們的 PCB 訂單出貨比為 1.2 倍。

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.

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重要使命。

Despite the COVID-19- and raw materials-related challenges we faced in Q1, our business performed better than we expected as a direct result of our employees' concerted efforts to engage and support our customers. We've also taken positive strategic moves that will strengthen TTM for the long term.

儘管我們在第一季面臨與 COVID-19 和原材料相關的挑戰，但我們的業務表現優於我們的預期，這是我們員工齊心協力參與和支持客戶的直接結果。我們也採取了積極的策略舉措，從長遠來看將加強 TTM。

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

現在托德將回顧我們第一季的財務表現。托德？

Thanks, Tom, and good afternoon, everyone. I'll be reviewing our financial results for the first quarter, which are also shown in the press release distributed today as well as on Page 6 of our earnings presentation, which is posted on our website.

謝謝湯姆，大家下午好。我將回顧我們第一季的財務業績，這些業績也顯示在今天發布的新聞稿以及我們發佈在我們網站上的收益簡報的第 6 頁上。

For the first quarter, net sales were $526.4 million compared to $497.6 million from continuing operations in the first quarter of 2020. The year-over-year increase in revenue was due to growth in our automotive, data center computing, and aerospace and defense end markets, partially offset by declines in our medical, industrial and instrumentation, and networking telecom end markets.

第一季的淨銷售額為5.264 億美元，而2020 年第一季持續經營業務的淨銷售額為4.976 億美元。成長市場的下滑部分被我們的醫療、工業和儀器儀表以及網路電信終端市場的下滑所抵消。

A portion of which was due to the closure of 2 EMS plants last year. GAAP operating income for the first quarter of 2021 was $19.8 million, compared to GAAP operating income from continuing operations of $16.2 million in the first quarter of 2020.

其中一部分是由於去年關閉了 2 家 EMS 工廠。 2021 年第一季的 GAAP 營業收入為 1,980 萬美元，而 2020 年第一季的持續經營業務的 GAAP 營業收入為 1,620 萬美元。

On a GAAP basis, the net loss in the first quarter of 2021, which included $15.2 million of expense associated with the refinancing of our high-yield bonds, was $3.2 million or $0.03 per diluted share.

根據公認會計原則，2021 年第一季的淨虧損（包括與高收益債券再融資相關的 1,520 萬美元費用）為 320 萬美元，即稀釋後每股虧損 0.03 美元。

This compares to a net loss from continuing operations of $3.2 million or $0.03 per diluted share in the first quarter of last year.

相比之下，去年第一季持續營運淨虧損為 320 萬美元，即稀釋後每股虧損 0.03 美元。

The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP financial performance excludes our divested mobility business unit, nonroutine tax items, M&A-related costs, restructuring costs, certain noncash expenses and other unusual or infrequent items.

我其餘的評論將重點放在我們的非公認會計準則財務表現。我們的非公認會計原則財務表現不包括我們剝離的行動業務部門、非常規稅項、併購相關成本、重組成本、某些非現金費用和其他不尋常或不常見的項目。

We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate a comparison with expectations and prior periods. Gross margin in the first quarter was 16% compared to 16.8% in the first quarter of 2020. But gross profit was higher by $0.8 million. These results reflect approximately $13 million of headwinds related to stronger Chinese currency, higher raw material costs due to increased quality prices, primarily copper, and continued expenses related to the COVID pandemic.

我們提供非公認會計準則財務信息，使投資者能夠透過管理層的視角了解公司，並便於與預期和前期進行比較。第一季毛利率為 16%，而 2020 年第一季為 16.8%。這些結果反映了與人民幣走強有關的約 1,300 萬美元的不利因素、由於優質價格（主要是銅）上漲而導致的原材料成本上漲以及與新冠疫情相關的持續支出。

We were able to mitigate most of these headwinds through higher revenue and production and spending efficiencies. Selling and marketing expense was $15.6 million in the first quarter or 3% of net sales versus $15.7 million or 3.2% of net sales 1 year ago.

我們能夠透過提高收入、生產和支出效率來緩解大部分不利因素。第一季的銷售和行銷費用為 1,560 萬美元，佔淨銷售額的 3%，而一年前為 1,570 萬美元，佔淨銷售額的 3.2%。

First quarter G&A expense was $26.6 million or 5% of net sales, compared to $29.6 million or 5.9% of net sales in the same quarter last year. In the first quarter, R&D expense was $4.4 million or 0.8% of revenues. Compared to $4.8 million or 1% of revenue in the year ago quarter.

第一季管理及行政費用為 2,660 萬美元，佔淨銷售額的 5%，去年同期為 2,960 萬美元，佔淨銷售額的 5.9%。第一季研發費用為 440 萬美元，佔營收的 0.8%。相比之下，去年同期營收為 480 萬美元，佔營收的 1%。

Our operating margin in Q1 was 7.2%. This compares to 6.7% in the same quarter last year. Interest expense was $10.9 million in the first quarter, a decrease of $5.4 million from the same quarter last year due to lower levels of debt as we repaid $400 million of our term loan and our $250 million convertible bond.

我們第一季的營業利益率為 7.2%。相比之下，去年同期為 6.7%。第一季利息支出為 1,090 萬美元，比去年同期減少 540 萬美元，因為我們償還了 4 億美元的定期貸款和 2.5 億美元的可轉換債券，債務水準較低。

During the quarter, there was minimal foreign exchange impact below the operating line. Government incentives and interest income resulted in a positive $1.8 million or approximately $0.01 of EPS. This compares to a gain of $2.4 million approximately $0.02 of EPS in Q1 last year.

本季度，營業線以下的外匯影響微乎其微。政府激勵措施和利息收入帶來了 180 萬美元的正收益，即每股收益約 0.01 美元。相比之下，去年第一季每股收益增加了 240 萬美元，約 0.02 美元。

Our effective tax rate was 12% in the first quarter. First quarter net income was $25.3 million or $0.23 per diluted share. This compares to first quarter 2020 net income of $16.7 million or $0.16 per diluted share. Adjusted EBITDA for the first quarter was $61 million or 11.6% of net sales. Compared with first quarter 2020 adjusted EBITDA of $60.2 million or 12.1% of net sales. Depreciation for the first quarter was $21.5 million. Net capital spending for the quarter was $21 million.

第一季我們的有效稅率為 12%。第一季淨利為 2,530 萬美元，或攤薄後每股收益 0.23 美元。相比之下，2020 年第一季淨利潤為 1,670 萬美元，即稀釋後每股收益 0.16 美元。第一季調整後 EBITDA 為 6,100 萬美元，佔淨銷售額的 11.6%。與 2020 年第一季相比，調整後 EBITDA 為 6,020 萬美元，佔淨銷售額的 12.1%。第一季折舊額為 2,150 萬美元。該季度的淨資本支出為 2,100 萬美元。

Our balance sheet and liquidity positions remained very strong. We completed the offering of $500 million of senior notes at 4% interest due 2029. We used the proceeds from that issuance to redeem $375 million of senior notes with a coupon of 5 5/8% due in 2025 and to repay $40 million of our U.S. ABL.

我們的資產負債表和流動性狀況仍然非常強勁。我們完成了5 億美元優先票據的發行，利率為4%，將於2029 年到期。 2025 年到期，並償還我們的4000 萬美元。

In addition, cash flow from operations was $41.1 million in the first quarter or 7.8% of payment. Cash and cash equivalents at the end of the first quarter of 2021 were $539.6 million. At the end of the first quarter, our net debt divided by last 12 month EBITDA was 1.4x.

此外，第一季營運現金流為 4,110 萬美元，佔付款額的 7.8%。 2021 年第一季末現金和現金等價物為 5.396 億美元。第一季末，我們的淨債務除以過去 12 個月的 EBITDA 為 1.4 倍。

Given this financial strength, during the first quarter, we announced a $100 million stock buyback program. However, due to market blackout restrictions, we were able to implement the program until late in the quarter, after we completed the offering of our senior notes.

鑑於這種財務實力，我們在第一季宣布了 1 億美元的股票回購計畫。然而，由於市場封鎖限制，我們直到本季末完成優先票據發行後才實施該計劃。

As a result, we had no buyback activity during the first quarter. We also have approximately 25.9 million warrants outstanding related to our redeemed convertible bond, which allowed for holders to acquire TTM stock at $14.46 per share. These warrants expire ratably between March 15, 2021 and January 25, 2022.

因此，我們在第一季沒有回購活動。我們還有大約 2590 萬張與我們贖回的可轉換債券相關的未償還認股權證，這些認股權證允許持有人以每股 14.46 美元的價格購買 TTM 股票。這些認股權證將於2021年3月15日至2022年1月25日期間到期。

During the first quarter, we renegotiated or negotiated an amendment that allows TTM to settle 60% of these warrants in cash rather than issuing shares. TTM has exercised that option for warrants expiring through the second quarter.

在第一季度，我們重新協商或協商了一項修正案，允許 TTM 以現金而非發行股票的方式結算 60% 的認股權證。 TTM 已對第二季到期的認股權證行使了該選擇權。

This will help reduce the potential dilution of warrants to our stockholders and effectively acts like a stock buyback program. We will determine whether to exercise that cash settlement option for future quarters at a later date.

這將有助於減少股東認股權證的潛在稀釋，並有效地起到股票回購計畫的作用。我們將在稍後決定是否在未來幾季行使現金結算選項。

Now I'd like to turn to our guidance for the second quarter. We expect total revenue for the second quarter of 2021 to be in the range of $525 million to $565 million. We expect non-GAAP earnings to be in the range of $0.27 to $0.33 per diluted share.

現在我想談談我們對第二季的指導。我們預計 2021 年第二季的總營收將在 5.25 億至 5.65 億美元之間。我們預計非 GAAP 攤薄後每股收益將在 0.27 美元至 0.33 美元之間。

The EPS forecast is based on a diluted share count of approximately 109 million shares. Our share count guidance includes dilutive securities such as options and RSUs, but no shares associated with our warrants.

EPS 預測是基於約 1.09 億股的稀釋股數。我們的股份數量指導包括選擇權和 RSU 等稀釋性證券，但不包括與我們的認股權證相關的股份。

For every dollar increase in the average share price above $14.26 during the quarter, our shares outstanding would increase by approximately 1 million shares. We expect this impact, however, will decline through the year as we settle the warrants.

本季平均股價每上漲 1 美元超過 14.26 美元，我們的流通股就會增加約 100 萬股。然而，我們預計，隨著認股權證的結算，這一影響將在今年有所下降。

We estimate that SG&A expense will be about 8.2% of revenue in the second quarter. And R&D to be about 0.8% of revenue. We expect interest expense to total approximately $10 million. Finally, we estimate our effective tax rate to be between 10% and 15%.

我們預計第二季的 SG&A 費用將佔營收的 8.2% 左右。研發費用約佔收入的 0.8%。我們預計利息支出總計約 1000 萬美元。最後，我們估計我們的有效稅率在 10% 到 15% 之間。

To assist you in developing your financial models, we offer the following additional information. During the second quarter, we expect to record amortization of intangibles of about $10.4 million. Stock-based compensation expense of about $3.5 million, noncash interest expense of approximately $0.5 million, and we estimate depreciation expense will be approximately $21.4 million.

為了幫助您開發財務模型，我們提供以下附加資訊。在第二季度，我們預計無形資產攤銷將達到約 1,040 萬美元。股票補償費用約為 350 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 2,140 萬美元。

Finally, I'd like to announce that we'll be participating virtually in several conferences this quarter, including Goldman Sachs Leverage Finance and Credit Conference on May 17, The Needham Technology and Media Conference on May 18, the Barclays High Yield and Syndicated Loan Conference on May 25, the Craig-Hallum Institutional Investor Conference on June 2, the UBS Global Industrials and Transportation Conference on June 8, the Baird Global Consumer Technology & Services Conference on June 9 and the Stifel Cross Sector Insight Conference on June 10. That concludes our prepared remarks, and now I'd like to open the line for questions. Casey?

最後，我想宣布，本季我們將虛擬參加多個會議，包括 5 月 17 日的高盛槓桿金融和信貸會議、5 月 18 日的 Needham 技術和媒體會議、巴克萊高收益和銀團貸款會議5 月25 日的會議、6 月2 日的Craig-Hallum 機構投資者會議、6 月8 日的瑞銀全球工業和運輸會議、6 月9 日的貝爾德全球消費者技術與服務會議以及6 月10 日的Stifel 跨部門洞察會議。凱西？

(Operator Instructions) We'll take our first question from William Stein of Trust Securities.

（操作員說明）我們將回答信託證券公司的 William Stein 提出的第一個問題。

I actually apologize for any background noise here. I'm still working from home. I wanted to ask about long-term operating margin trends. You just delivered, I think, of a 7.2% op margin. At the last Analyst Day you established a goal of 12% to 14%, quite a bit higher than where we are, and you've sold one business that I don't know if it was lower on average, but certainly much more volatile and, I think, lower in most of my recollection.

事實上，我對這裡的任何背景噪音表示歉意。我仍然在家工作。我想詢問長期營業利潤率趨勢。我想，你們剛剛實現了 7.2% 的營運利潤率。在上個分析師日，您設定了12% 到14% 的目標，比我們目前的目標高出很多，並且您出售了一項業務，我不知道該業務是否低於平均水平，但肯定波動性更大而且，我認為，在我的大部分記憶中，這個數字都較低。

And you also shut down most of your EMS business, but I would think both of which certainly have a stabilizing effect and probably net higher effect on operating margins. So I understand you're probably not going to set a new target for us today.

你們也關閉了大部分 EMS 業務，但我認為這兩者肯定具有穩定作用，並且可能對營業利潤率產生更高的淨影響。所以我知道您今天可能不會為我們設定新目標。

But I wonder what investors can expect the path to be, whether we should still expect a path to significantly higher operating margins from here, and what it will take to achieve that.

但我想知道投資者可以期待什麼路徑，我們是否仍然應該期望從這裡開始大幅提高營業利潤率，以及實現這一目標需要採取什麼措施。

Will, thank you for the question. And I think that's a pretty practical question, given the performance of the quarter. We did pretty well on the top line, and we're seeing some growth there.

威爾，謝謝你的提問。考慮到本季的表現，我認為這是一個非常實際的問題。我們在營收方面做得很好，而且我們看到了一些成長。

And that growth is delivering incremental margin that we would expect, kind of in that neighborhood of 25%, but it was fortunately offset, if you will, from the issues that we're facing in terms of significant challenges of foreign exchange, commodity pricing and still some residual challenges with COVID as we try to wind down our -- or the impact of the virus on our operations.

這種增長正在帶來我們預期的增量利潤，大約在 25% 左右，但幸運的是，如果你願意的話，它可以抵消我們在外匯、大宗商品定價方面面臨的重大挑戰的問題當我們試圖減少病毒對我們營運的影響時，仍存在一些與新冠病毒相關的殘餘挑戰。

And I highlighted the fact that we had $13 million of headwind in the quarter. And those are things that are -- we don't view as permanent. We are -- in some cases, they'll correct themselves. In others, we are taking steps and measures to mitigate the impact of that -- some of that $13 million.

我強調了一個事實，即本季我們遇到了 1300 萬美元的逆風。我們並不認為這些是永久的。我們是——在某些情況下，他們會自我糾正。在其他方面，我們正在採取步驟和措施來減輕其影響——其中部分資金為 1,300 萬美元。

So point in highlighting that is that if you looked outside the $13 million, our operating margins would have been quite strong. And that's really what we're looking at on a long-term basis.

因此，需要強調的是，如果你考慮 1,300 萬美元以外的情況，我們的營業利潤率將會相當強勁。這確實是我們長期關注的問題。

We have these challenges short term. And when you have steep adjustments in foreign exchange rates or commodity pricing, in particular, if those changes happen very rapidly, it will negatively impact our operating margins temporarily while we work through a period of digestion. And how do we work on these things? Well, obviously, in the case of commodity pricing, we're working to diversify the supply base. And we're also working on making sure that we're adjusting our pricing models so that we're passing these costs on to our customers.

我們短期內面臨這些挑戰。當外匯匯率或大宗商品定價發生大幅調整時，特別是如果這些變化發生得非常快，在我們經歷一段消化時期時，它將暫時對我們的營業利潤率產生負面影響。我們如何處理這些事情？顯然，就大宗商品定價而言，我們正在努力實現供應基礎多元化。我們也正在努力確保調整我們的定價模型，以便將這些成本轉嫁給我們的客戶。

So with that in mind, back to the original statement you made about our target margins, we're still believers of those. We just -- we have to get through this issue in the short-term with the market that we're dealing with, both in terms of the virus that's out there as well as commodity pricing that we're dealing with. And then -- and have continued growth in the revenue, which we are starting to see now.

因此，考慮到這一點，回到您最初對我們的目標利潤率所做的陳述，我們仍然相信這些。我們只是 - 我們必須在短期內解決我們正在處理的市場的這個問題，無論是在病毒方面還是在我們正在處理的商品定價方面。然後——收入持續成長，我們現在開始看到這一點。

So hopefully, that gives you some kind of context. And some confidence that we have in the business model itself.

希望這能為您提供一些背景資訊。我們對商業模式本身有一定的信心。

And we will take our next question from Mike Crawford of B. Riley Securities.

我們將回答 B. Riley 證券公司的 Mike Crawford 提出的下一個問題。

Are there any changes in conversations you're having with your defense customers, given the new administration and/or the reopening of the Pentagon with less severe travel restrictions?

鑑於新政府和/或五角大廈重新開放且旅行限制不那麼嚴格，您與國防客戶的對話是否有任何變化？

Yes. So this is Tom. I'll answer that one, Mike. Thanks for the question. What I would say at this point, first of all, encouraging news on the budget. Sort of what we commented on last quarter has been coming to pass. I think the Biden administration recognizes that -- how important defense is. There have been some shifts in strategy.

是的。這就是湯姆。我會回答這個問題，麥克。謝謝你的提問。我現在要說的，首先是關於預算的令人鼓舞的消息。我們上季的評論已經成為現實。我認為拜登政府認識到防禦的重要性。戰略上發生了一些轉變。

But in terms of overall budget, looking at a relatively flat budget, which is great news for us because we're in the programs that are still benefiting from that budget.

但就整體預算而言，預算相對持平，這對我們來說是個好消息，因為我們參與的項目仍然受益於該預算。

So I think that's continued to be a positive trend for us. As you mentioned, things gradually opening up. There's a couple of developments here, right? The government, certainly Defense Department looking at strategically, how can we continue to -- or how can we return the building of our manufacturing infrastructure, both for defense and also for dual use kind of requirements? Then while there's nothing short-term to report there, I think that's an encouraging trend certainly for a company such as TTM with such a strong footprint in North America.

所以我認為這對我們來說仍然是一個積極的趨勢。正如你所提到的，事情逐漸開放。這裡有一些進展，對吧？政府，當然是國防部，從戰略角度考慮，我們如何繼續——或者我們如何才能恢復我們的製造基礎設施的建設，既滿足國防需求，也滿足雙重用途的需求？雖然短期內沒有什麼可報告的，但我認為對於像迅達這樣在北美擁有如此強大影響力的公司來說，這無疑是一個令人鼓舞的趨勢。

And then, as you mentioned, yes, there's an opening up in terms of the ability to have dialogue with the Defense Department. And that, again, not our direct customer, our customer's customer, in most cases, but being able to have that dialogue as needed allows us to learn more about the strategic priorities, make sure that we are, in turn, meeting those requirements from a technology development standpoint and also that our footprint continues to meet those requirements from a production, ongoing production standpoint. So all positive developments, I would say.

然後，正如您所提到的，是的，在與國防部對話的能力方面存在開放。再說一次，在大多數情況下，不是我們的直接客戶，我們客戶的客戶，但能夠根據需要進行對話使我們能夠更多地了解戰略優先事項，確保我們反過來滿足來自客戶的這些要求。開發的角度來看，我們的足跡繼續從生產、持續生產的角度來滿足這些要求。我想說，所有這些都是積極的進展。

Okay. And just one follow-up, just on the footprint. In addition to that strong North American footprint, is there any updates on your aspirations to get anything in Europe and/or Southeast Asia?

好的。只有一個後續行動，就在足跡上。除了在北美的影響力之外，您對歐洲和/或東南亞的渴望是否有任何更新？

Continuing to actively look. I think nothing has changed in terms of the meat. Let's put it that way. The -- from our customers, the desire to see that support in Europe is still there.

繼續積極尋找。我認為肉方面沒有任何改變。這麼說吧。我們的客戶仍然希望看到歐洲的支持。

We're doing -- I think our team does a great job of meeting requirements out of North America, but there are opportunities in Europe as well.

我們正在做——我認為我們的團隊在滿足北美以外的要求方面做得很好，但歐洲也有機會。

And then Southeast Asia from a volume standpoint, with the shift in administrations, really, there hasn't been -- there may be a shift in tone in terms of the absolute urgency to move the footprint, but no shift in tone in terms of the long-term need to move that footprint.

然後，從數量的角度來看，東南亞，隨著政府的轉變，實際上，在轉移足蹟的絕對緊迫性方面可能有語氣的轉變，但在轉移足跡方面的語氣沒有變化。

So our dialogue with our customers continues around how do we ensure that we have the right footprint for their long-term needs. So continuing to look at that, Mike.

因此，我們與客戶的對話繼續圍繞著如何確保我們擁有滿足他們長期需求的正確足跡。所以繼續關注這一點，麥克。

We'll take our next question from Christian Schwab of Craig-Hallum.

我們將回答 Craig-Hallum 的 Christian Schwab 提出的下一個問題。

This is Tyler on behalf of Christian. First question, I wanted to revisit these headwinds you're seeing. You quantified almost $13 million in Q1 for the foreign exchange and broad commodity price increases and some residual COVID impacts.

這是泰勒代表克里斯蒂安。第一個問題，我想重新檢視你所看到的這些不利因素。您量化了第一季外匯和大宗商品價格上漲以及新冠疫情的一些殘餘影響的近 1300 萬美元。

I was just wondering if you could maybe give a little more color on a time line you expected these to ease? And maybe how much costs are you assuming continues in Q2?

我只是想知道你是否可以在你期望這些緩解的時間線上提供更多的色彩？也許您假設第二季繼續存在多少成本？

Because your guidance does apply a relatively nice step-up in margins. So any color there would be great.

因為您的指導確實對利潤率進行了相對較好的提升。所以任何顏色都會很棒。

Tyler, thanks again for asking the question because I think this is really the key topic that we're dealing with. So if you take the three pieces, right?

泰勒，再次感謝您提出這個問題，因為我認為這確實是我們正在處理的關鍵主題。那如果你拿這三塊，對嗎？

COVID, we're certainly seeing some progress here in North America, where we're most impacted the last several quarters. In the general population and what's happening with the decline now since the year-end or the beginning of the year in COVID cases, the increasing rate of vaccinations for people, these are all favorable.

新冠疫情，我們在北美確實看到了一些進展，過去幾季我們在北美受到的影響最大。對於一般人群來說，自年底或年初以來新冠病例數下降、人們疫苗接種率不斷增加，這些都是有利的。

Our employees live in the general population, so they're subject to those same challenges as the average person is in America. So that progress is encouraging. We will -- we still expect to see some challenge in Q2 as we begin to come out of -- we're spread across the country, and different states and regions have different protocols.

我們的員工生活在普通人群中，因此他們面臨著與美國普通人相同的挑戰。因此，這項進展令人鼓舞。我們仍然預計在第二季度會遇到一些挑戰，因為我們開始走出去，我們遍布全國各地，不同的州和地區有不同的協議。

And as we work through those issues and able to support our business and get our people back to work more consistently, we'll see some effect in Q2. But that should start to wind pretty consistently with what you're looking at in terms of vaccination rates in general, virus -- new virus cases in the general population.

當我們解決這些問題並能夠支持我們的業務並讓我們的員工更一致地重返工作崗位時，我們將在第二季度看到一些效果。但這應該開始與你所看到的整體疫苗接種率、病毒——普通人群中的新病毒病例非常一致。

So I think that's something you can monitor and kind of have a sense of direction from as you watch the news.

所以我認為這是你可以監控的事情，並且當你觀看新聞時可以有一種方向感。

In the case of raw material pricing, that continues to be a challenge. And typically, we adjust quotations going forward. But obviously, you have product that's already in the pipeline with fixed pricing.

就原材料定價而言，這仍然是一個挑戰。通常，我們會調整未來的報價。但顯然，您已經擁有固定定價的產品。

And so there's challenges as to how you can adjust pricing to mitigate those cost increases, which tends to lag, right? Pricing changes tend to lag the actual cost changes.

因此，如何調整定價以減輕成本增加是一個挑戰，而成本增加往往會滯後，對嗎？定價變動往往落後於實際成本變動。

And so we continue to see pressure there. So I think we'll continue to face some challenges with that as we go into the second quarter, certainly. And how much beyond that is difficult to say. But certainly, the second quarter will continue to feel some pressure from that.

因此我們繼續看到那裡的壓力。因此，我認為進入第二季時我們肯定會繼續面臨一些挑戰。除此之外還有多少就很難說了。但可以肯定的是，第二季將繼續感受到一些壓力。

Foreign exchange started to look a little bit better during Q1. But then since the start in April, we've seen it strengthen -- the Chinese currency strengthen again, which puts a little more pressure on us.

第一季外匯交易開始好一些。但從四月開始，我們看到它走強——人民幣再次走強，這給我們帶來了更大的壓力。

Year-over-year, it continues to be a challenge, but that's something that we build into the cost structure and we work on in terms of pricing and, particularly, we work on in terms of cost management.

年復一年，這仍然是一個挑戰，但這是我們在成本結構中建構的內容，我們在定價方面開展工作，特別是在成本管理方面開展工作。

Our team does a great job of trying to get more efficient all the time. And we saw some of the benefits of that in Q1. Even though we had $13 million of headwinds, we -- our margins came down a little bit, but not $13 million worth.

我們的團隊一直在努力提高效率方面做得很好。我們在第一季看到了這樣做的一些好處。儘管我們面臨 1300 萬美元的逆風，我們的利潤率還是下降了一點，但價值並沒有下降 1300 萬美元。

We mitigated some of that with revenue increase, but a big chunk of that was through production and other spending efficiencies, which is a reflection of the efforts of the team to improve yields on products and to just manage costs very carefully, and becoming more productive.

我們透過收入增加緩解了其中的一些問題，但其中很大一部分是透過生產和其他支出效率來實現的，這反映了團隊為提高產品產量、非常仔細地管理成本以及提高生產力所做的努力。

So we just -- we do that all the time. We just need to keep doing that to help offset some of these challenges over longer term. So we'll continue to face some pressure on that in Q2.

所以我們只是——我們一直這樣做。我們只需要繼續這樣做，以幫助抵消其中一些長期挑戰。因此，我們在第二季將繼續面臨一些壓力。

We've tried to reflect that in the forecast, but also noting some improvement as we continue to make progress on these things.

我們試圖在預測中反映這一點，但隨著我們在這些事情上不斷取得進展，我們也注意到了一些改進。

And we'll just have to watch and see what happens in the market on commodities and whatnot as we go through the second quarter to have a better sense of what it's going to look like when we get to the third quarter. So I hope that helps a little bit.

當我們進入第二季時，我們只需觀察大宗商品市場會發生什麼，以便更好地了解第三季時的情況。所以我希望這能有所幫助。

That was great. That was great color. I appreciate that. Second question, if you could. I was hoping to maybe get an update on your kind of outlook on the telecom market, in particular, China's progress or time line to begin their phase 3 5G rollout. Any update or your outlook from conversations with customers there would be great.

那很棒。那是很棒的顏色。我很感激。第二個問題，如果可以的話。我希望了解您對電信市場的最新看法，特別是中國的進展或開始第三階段 5G 部署的時間表。與客戶對話中的任何更新或您的展望都會很棒。

Sure. Yes, I think if you look at the telecom situation, the critical point in terms of China is when does the phase 3 investment cycle really start? It sounds like that's going to be -- versus sort of being a single auction. It looks like it's going to be more phased in here as we go through Q2 and into Q3, which is a new development.

當然。是的，我認為如果你看看電信的情況，就中國而言，關鍵點是第三階段投資週期何時真正開始？聽起來這將是——而不是單一拍賣。當我們經歷第二季和第三季（這是一個新的發展）時，它看起來會更加分階段進行。

So more of a phased-in approach. I don't -- I haven't seen any change in terms of certainly the official forecast. I think the official forecasts are still somewhere around 600,000 base stations, up from about 580,000 last year being required.

所以更多的是分階段的方法。我沒有——我沒有看到官方預測有任何變化。我認為官方預測仍約為 60 萬個基地台，高於去年所需的約 58 萬個。

So that number hasn't changed. Where we are seeing activity and as we had forecast last quarter, is in the non-China piece of telecom and strong activity in North America, certainly, activity in Japan, South Korea, Southeast Asia starting to warm up.

所以這個數字沒有改變。正如我們上季度預測的那樣，我們看到的活動是非中國電信領域的活動，北美的活動也很強勁，當然，日本、韓國、東南亞的活動也開始升溫。

Balance of the world, slow. So EU, slow, certainly, Latin and South America slow, but a pickup in the rest of world that is pretty much as we had forecast last quarter.

世界的平衡，緩慢。因此，歐盟當然很慢，拉丁美洲和南美也很慢，但世界其他地區的成長與我們上季的預測基本一致。

So with TTM, of course, you see -- you tend to see that our revenues are pretty well balanced. But if anything, a little bit weighted towards China on the revenue side. If you start thinking about our component business, more weighted for rest of world.

因此，對於 TTM，當然，您會發現我們的收入非常平衡。但如果有什麼不同的話，那就是在收入方面稍微偏向中國。如果您開始考慮我們的零件業務，它對世界其他地區的影響更大。

So we're still agnostic. We'd love to see all of our customers succeed here and certainly look forward to China, the demand coming out of China as that phase 3 starts to kick off.

所以我們仍然是不可知論。我們很高興看到我們所有的客戶在這裡取得成功，當然也期待中國，隨著第三階段的開始，來自中國的需求將隨之而來。

We'll take our next question from Alvin Park of Stifel.

我們將回答 Stifel 的 Alvin Park 提出的下一個問題。

Going on, on behalf of Matthew Sheerin. I wanted to follow-up on the book-to-bill. You mentioned that at 1.2, which is relatively elevated. And you did mention for auto that the current semi shortages, supply shortages, is not having a direct impact to your overall bookings volume.

繼續，代表馬修·謝林。我想跟進訂單到帳單的情況。你提到1.2，這是相對較高的。您確實提到汽車方面，目前的半成品短缺、供應短缺並沒有對您的整體預訂量產生直接影響。

But in terms of that elevated bookings level, how much of that, do you think, is involved with inventory builds versus true demand follow-through? And looking further into the year, how do you think the -- those order trends might progress given what's going on with the general industry and the supply chain?

但就預訂水準的提高而言，您認為其中有多少與庫存建設有關，而不是與真正的需求跟進有關？展望今年，考慮到整個產業和供應鏈的情況，您認為這些訂單趨勢可能會如何發展？

Sure. Yes. I think the -- certainly, the comment overall on the bookings level on the commercial side, very strong. That's reflected in that backlog number. Glad to see the commercial bookings really move now across our footprint, not just Asia Pacific, but benefiting our North America footprint as well, which is a great development.

當然。是的。我認為——當然，對商業方面預訂水平的整體評論非常強烈。這反映在積壓訂單數量。很高興看到商業預訂現在真正遍布我們的足跡，不僅是亞太地區，而且也使我們的北美足跡受益，這是一個巨大的發展。

And then if you start looking specifically, where the inventory concerns have been raised is predominantly around the automotive side. What we're hearing from customers at this point, as I mentioned earlier, is that they continue to want to see a ship. And in discussions with those customers, they're saying, look, the demand is still there that they need us to continue to ship.

然後，如果你開始具體觀察，你會發現庫存問題主要集中在汽車方面。正如我之前提到的，我們目前從客戶那裡聽到的是，他們仍然希望看到一艘船。在與這些客戶的討論中，他們說，看，需求仍然存在，他們需要我們繼續發貨。

Part of that is, frankly, inventory replenishment from last year.

坦白說，其中一部分是去年的庫存補充。

So there is a little bit of inventory replenishment, I'd say, there. But in terms of potential inventory adjustments, we certainly haven't seen that. And the demand has continued to remain there. It remains strong for us here.

所以我想說，有一點庫存補充。但就潛在的庫存調整而言，我們當然還沒有看到這種情況。而且需求仍然存在。它對我們來說仍然很強大。

And certainly, that's what we're seeing in the second quarter as well. What we're looking to, particularly in automotive, is what does the end market look like as we head into the second half of the year. We've been encouraged -- encouraging trends in Asia. North America, encouraging as well.

當然，這也是我們在第二季看到的情況。我們關注的是進入今年下半年時終端市場的情況，特別是在汽車領域。我們受到了鼓舞——亞洲的趨勢令人鼓舞。北美，同樣令人鼓舞。

I think the only question out there right now, as we look at our business, is Europe, and when do we see a stronger recovery out of Europe. And how does that then impact the second half of the year? So still, I would say, second half of the year, we're not yet sure yet. But certainly, through the first half, it looks strong, looks like the end market demand really across the commercial sector is holding up very well. So very pleased to see that.

我認為，當我們審視我們的業務時，目前唯一的問題是歐洲，以及我們何時會看到歐洲出現更強的復甦。這對下半年有何影響？所以，我想說，今年下半年，我們還不確定。但可以肯定的是，整個上半年看起來很強勁，看起來整個商業領域的終端市場需求確實保持得很好。非常高興看到這一點。

And if I may, for a follow-up, you clearly detailed the COGS in your gross profit margin and the associated commodities headwinds and FX headwinds and the like. But could we get more color on how you're looking into OpEx later into the year and beyond, once, hopefully, the world gets back into post-pandemic recovery and things go back to normal?

如果可以的話，作為後續行動，您清楚地詳細說明了毛利率中的銷貨成本以及相關的商品逆風和外匯逆風等。但是，一旦世界恢復到疫情後的復甦階段，一切恢復正常，我們能否獲得更多關於您如何看待今年晚些時候及以後的營運支出的資訊？

And I believe for the OpEx guidance, including R&D, the guide was around 10% of revenue versus last quarter guide, which was at 9.6%, and that has been trickling up slightly. Should we be looking at OpEx going up or down with the increase of travel, but COVID costs are decreasing? With all the puts and takes, how should we be looking at that going forward?

我相信，對於包括研發在內的營運支出指導，該指導約為收入的 10%，而上季度指導為 9.6%，而且這一比例一直在小幅上升。我們應該考慮營運支出隨著旅行的增加而上升還是下降，但新冠疫情成本卻在下降？考慮到所有的看跌期權，我們該如何看待未來？

I'll try to respond to that, Tom. Alvin, you're correct in observing that last year's OpEx numbers were probably -- well, certainly suppressed because of the virus, right? We curtailed all travel. We also took aggressive actions proactively to be very cautious, and we ran as lean as we possibly could in terms of headcount and managing the business.

我會盡力回應這一點，湯姆。阿爾文，您的觀察是正確的，去年的營運支出數據可能——嗯，肯定是因為病毒而受到抑制，對嗎？我們減少了所有旅行。我們也積極採取積極行動，保持非常謹慎的態度，並在員工人數和業務管理方面盡可能精簡。

And so we're below average or below what we -- what I would call as a normal sustainable run rate when you look at the 2020 kind of OpEx numbers.

因此，當你查看 2020 年的營運支出數據時，我們低於平均或低於我所說的正常永續運作率。

As you go into this coming year and you start to look at Q -- what we've given guidance on in terms of Q2 and how that compares to Q1, we're gradually starting to ramp up.

當你進入明年並開始關注 Q 時——我們在第二季度給出了哪些指導以及與第一季相比如何，我們正在逐漸開始加速。

Travel is still relatively muted. But will increase as the virus gets under better control here throughout the year. That would probably be one of the biggest factors influencing some of our spending.

出遊仍然相對平靜。但隨著全年病毒得到更好的控制，這種情況將會增加。這可能是影響我們某些支出的最大因素之一。

And we're not talking $5 million worth of OpEx here. We're really focusing on modest growth as we deal with some of the one-offs, travel being one.

我們這裡討論的不是價值 500 萬美元的營運支出。在處理一些一次性問題時，我們真正關注的是適度成長，而旅行就是其中之一。

Also you get fluctuations quarter-to-quarter depending on what happens sometimes with like accounts receivable with bad debt reserves and things like that. We did have a little bit of a recovery in Q1 that probably -- well, suppressed our results or our G&A expense by about $1 million.

此外，季度與季度之間也會出現波動，具體取決於有時發生的情況，例如帶有壞帳準備金的應收帳款等。我們在第一季確實有一點復甦，這可能會導致我們的業績或一般管理費用減少約 100 萬美元。

That's not likely to repeat next quarter. So you got to take out some of those one-off anomalies. When you look at our overall run rate on OpEx, a number up in that $50 million range is not unreasonable for kind of a normal number. So that's probably something you should look at longer term in terms of expectations as we go through the year.

這種情況不太可能在下個季度重演。所以你必須消除一些一次性的異常現象。當您查看我們的營運支出整體運行率時，您會發現 5000 萬美元的數字對於正常數字來說並非不合理。因此，在我們度過這一年的過程中，您可能應該從長遠的角度來看待這一點。

We will take our next question from Tyler Bailey of Needham.

我們將回答李約瑟的泰勒貝利的下一個問題。

I'm filling in for Jim Ricchiuti. You mentioned again you guys continuing to build a strong balance sheet. So just wondering if you could maybe provide some insight into your M&A pipeline and maybe possibly more on which verticals you might be targeting?

我將接替吉姆·里奇烏蒂 (Jim Ricchiuti)。你們再次提到你們將繼續建立強大的資產負債表。因此，我想知道您是否可以提供一些有關您的併購管道的見解，以及您可能瞄準的垂直行業的更多資訊？

Sure. Yes. So the theme for us and really strategically, the direction for TTM is to continue to focus on differentiation. And that differentiation comes in a couple of forms that tie directly to our M&A strategy. One is in terms of really how we build on top of our printed circuit board, and that's really oriented around RF, our building on the Anaren acquisition of several years ago, continuing to add RF expertise in the component area for our commercial business and in the -- and with RF engineering strength for our aerospace and defense business.

當然。是的。因此，我們的主題以及真正的策略方向是，TTM 的方向是繼續專注於差異化。這種差異化有多種形式，與我們的併購策略直接相關。一是我們如何在印刷電路板上構建，這實際上是圍繞射頻的，我們建立在幾年前收購 Anaren 的基礎上，繼續為我們的商業業務和在組件領域增加射頻專業知識。航空航太和國防業務的射頻工程實力。

So that's the primary thrust of our M&A direction. From -- a secondary area of differentiation for us is in our footprint capability between our North America strength and backed up by volume production in Asia.

這就是我們併購方向的主要動力。我們的第二個差異化領域是我們在北美的優勢和亞洲批量生產的支援之間的足跡能力。

As we see customer needs shift in terms of requirements, we'll continue to look at M&A opportunities as related to our footprint expansion as well.

當我們看到客戶需求改變時，我們將繼續尋找與我們的業務擴張相關的併購機會。

So those are the -- really, the 2 primary areas. I would comment that the market or the valuation expectations out there, still a little bit of a disconnect in terms of where we believe, when we look at cash flow analysis, which is critical for us.

所以，這些確實是兩個主要領域。我想說的是，當我們進行現金流分析時，市場或估值預期與我們的信念仍然有些脫節，這對我們來說至關重要。

When you look at our cash flow based valuations, still a little bit of a gap there in between expectations and what we would look at as really a discounted cash flow-based valuation. But that will -- that changes over time. It hasn't shifted our strategic direction here as we look at M&A. So hopefully, that helps you with that question.

當您查看我們基於現金流量的估值時，您會發現預期與我們所認為的真正基於現金流量的折現估值之間仍然存在一些差距。但這會隨著時間的推移而改變。當我們考慮併購時，它並沒有改變我們的策略方向。希望這對您解決這個問題有所幫助。

(Operator Instructions) we'll take our next question from Paul Coster of JP Morgan.

（操作員說明）我們將接受摩根大通的保羅·科斯特（Paul Coster）提出的下一個問題。

This is Paul Chung on for Coster. So just on seasonality, today, now with cellular gone, that kind of lessens the volatility of 3Q and 4Q. But how do we kind of think about sequential trends throughout the year? 2Q you got a bump from your guidance, but should we still expect a larger second half relative to the first half? Any comments there would be helpful.

我是科斯特的保羅·鐘。因此，就季節性而言，今天，隨著蜂窩網路的消失，這在某種程度上減少了第三季和第四季的波動性。但我們如何看待全年的連續趨勢呢？第二季度，您的指引有所提高，但我們是否仍應該預期下半年相對於上半年會有更大的成長？那裡的任何評論都會有幫助。

Maybe I can start, Todd, and you can jump in if I miss anything. I think that from -- you're absolutely right, Paul. From a seasonality standpoint, really, the seasonality that's left in our business model is mainly just around Chinese New Year. And that's based on our customers' production schedules being impacted by Chinese New Year as well as well as our own factories and production being limited. So that's the seasonality that we have left. It mostly now we're looking at markets that work on cycles. And so it's very much end-market specific. Now as we start looking at the second half of this year, and, certainly, as we've indicated in

也許我可以開始，托德，如果我錯過了什麼，你可以加入。我認為－－你說得完全正確，保羅。從季節性的角度來看，實際上，我們的商業模式中剩餘的季節性主要集中在農曆新年前後。這是基於我們客戶的生產計劃受到農曆新年的影響以及我們自己的工廠和生產受到限制。這就是我們剩下的季節性。現在我們主要關注的是週期性市場。因此，這在很大程度上是針對終端市場的。現在，當我們開始展望今年下半年時，當然，正如我們在

the second quarter, we're seeing commercial market strength generally. If you look at -- start with just running quickly through the businesses, if you look at automotive, certainly, automotive continuing a rebound. I covered the second half.

第二季度，我們看到商業市場普遍走強。如果你看看——從快速瀏覽各個業務開始，如果你看看汽車產業，當然，汽車產業正在持續反彈。我講了下半場。

I do think we're going to get to a steady state here, but still good, solid strength there driven by the end market. Data center, continuing to grow. We had a very good year last year in data center computing.

我確實認為我們將在這裡達到穩定狀態，但在終端市場的推動下仍然保持良好、堅實的實力。資料中心，持續成長。去年我們在資料中心計算領域度過了非常美好的一年。

And it looks, again, this year, a lot of design activity with our customers and very encouraging environment. MII, if you look at medical industrial instrumentation, I highlighted semiconductor capital equipment.

今年，我們與客戶一起進行了許多設計活動，環境也非常鼓舞人心。 MII，如果你看看醫療工業儀器，我強調了半導體資本設備。

Everyone knows that's been a strong area, certainly has impacted our business. What I'm excited about is we're now seeing medical -- really the elective surgery related medical business start to come back. Last year, we were dealing with urgent requirements for ventilator and patient monitoring systems.

每個人都知道這是一個強大的領域，肯定對我們的業務產生了影響。讓我感到興奮的是，我們現在看到醫療保健——實際上與擇期手術相關的醫療業務開始回歸。去年，我們正在處理呼吸器和病患監護系統的緊急需求。

Now we're back to seeing that mix shift towards more steady, solid growth in that medical business. I'm really excited to see that coming into our mix now. And industrial, for us, industrial, a lot of our industrial work is automation, robotics related, starting to really come back now.

現在我們又看到醫療業務的組合轉向更穩定、穩健的成長。我很高興看到它現在加入我們的組合。而工業，對我們來說，工業，我們的許多工業工作都與自動化、機器人有關，現在開始真正回歸。

So our MII area is now looking to be much better balanced and that certainly bodes well here as we go through the course of the year.

因此，我們的 MII 領域現在希望更加平衡，這在我們今年的進程中無疑是個好兆頭。

And I commented on networking communications and that telecom piece, again, from a revenue standpoint, I would expect China to reemerge on that side as we go through Q2 and Q3 and complemented by rest of world demand. Networking continues to look solid.

我再次對網路通訊和電信部分進行了評論，從收入的角度來看，我預計隨著第二季和第三季的到來，並得到世界其他地區需求的補充，中國將在這方面重新崛起。網路看起來仍然很穩定。

So overall, commercial business looks very good here as we go through the course of the year. And as the economies overall recover post-COVID.

總的來說，在這一年中，這裡的商業業務看起來非常好。隨著疫情過後經濟的整體復甦。

Aerospace and defense, defense remains solid. And what -- again, slight encouragement here in terms of commercial aerospace. And what has been really a business bumping along the bottom, we're starting

航空航太和國防，防禦依然穩固。還有什麼——再次，在商業航空航天方面略有鼓勵。真正的業務正在觸底，我們正在開始

to see a little bit of positive movement there that's encouraging to see we'll see if it holds up. But certainly, a better situation than a quarter ago, though still subdued on a year-on-year basis.

看到一些積極的變化，這令人鼓舞，我們將看看它是否能持續下去。但可以肯定的是，情況比一個季度前要好，儘管同比仍然低迷。

So hopefully, I'll give you a quick run-through, but much more related to these end markets and their demand trends now than any particular consumer-based seasonality.

因此，希望我能讓您快速瀏覽一下，但與這些終端市場及其現在的需求趨勢的關係比任何特定的基於消費者的季節性更為相關。

Got you. That's very helpful. And then on your capital structure, it's in very good shape. And you mentioned share buybacks may become a priority, which you really haven't been active on in years.

明白你了。這非常有幫助。然後就你的資本結構而言，它的狀況非常好。您提到股票回購可能會成為優先事項，但您多年來一直沒有積極參與。

So are you kind of signaling a pause on M&A and maybe focused more on increasing margins organically and then more share buybacks?

那麼，您是否表示暫停併購，可能更專注於有機地提高利潤率，然後進行更多股票回購？

What maybe I can -- I'll start out and, Todd, you jump in. The -- we view this as complementary. We have -- as you know, we've always had a structure, a balance sheet goal of being in that 1.5x to 2.0x. We're very comfortable operating in that neighborhood.

也許我能做的——我會開始，托德，你也加入進來。如你所知，我們一直有一個結構，資產負債表目標是 1.5 倍到 2.0 倍。我們在那個街區經營非常自在。

As we saw our sales coming down below that 1.5x. That's when it starts making sense to look at returning money, capital, to shareholders as part of the overall capital allocation strategy. But that by no means reduces the priority around M&A.

當我們看到我們的銷售額下降到 1.5 倍以下。從那時起，將資金、資本返還給股東作為整體資本配置策略的一部分就開始有意義了。但這絕不降低併購的優先順序。

What it really just says is, Look, we've got another tool in the toolbox here as we manage our overall balance sheet. So think about it that way in terms of certainly the TTM orientation. But, Todd, any other comments there?

它真正想說的是，看，我們的工具箱裡還有另一個工具，可以用來管理我們的整體資產負債表。因此，從 TTM 方向的角度考慮這一點。但是，托德，還有其他評論嗎？

No, I think I'd just highlight, we've reached a point where it kind of ties to your seasonality question, Paul With the absence of seasonality, we have much more consistent performance, and we're much more predictable in that way.

不，我想我只是強調一下，我們已經達到了與你的季節性問題相關的地步，保羅，由於沒有季節性，我們的表現更加一致，而且我們在這種方式上更加可預測。

And so it's increased our confidence level in the ability of the business in terms of the cash generation capability. And as Tom highlighted, we are moving forward on both fronts. We believe that we can do both. They're not mutually exclusive.

因此，這提高了我們對企業現金產生能力的信心。正如湯姆所強調的，我們正在這兩個方面取得進展。我們相信我們可以做到這兩點。它們並不互相排斥。

Now there may be a time if we do a big deal or something like that, that we might have to throttle back on the stock buyback for a period of time. But over the longer haul, we see room for both actions or both opportunities in terms of helping our shareholders increase their value.

現在，如果我們進行一筆大交易或類似的事情，我們可能不得不在一段時間內減少股票回購。但從長遠來看，我們認為在幫助股東增加價值方面，這兩種行動或兩個機會都有空間。

Okay. Great. And then last question, free cash flow, if I listen to what you're saying about the steadiness of the quarters on a seasonal basis, does that kind of apply to your free cash flow as well to flow through?

好的。偉大的。最後一個問題，自由現金流，如果我聽聽你所說的季度季度穩定性，這是否也適用於你的自由現金流？

And what's kind of your outlook on working cap. You had a pretty big benefit in '20. There's some noise with the sale of cellular, but how should we think about overall free cash flow for the year-end conversion?

您對工作上限有何看法？你在 20 世紀獲得了相當大的利益。手機銷售存在一些噪音，但我們應該如何考慮年終轉換的整體自由現金流？

So I would just kind of -- I'll go at the answer kind of backwards. Let me do the CapEx part of it first because we manage that pretty carefully.

所以我會——我會倒著回答這個問題。讓我先討論資本支出部分，因為我們對此進行了非常仔細的管理。

But as we noted, I think, last quarter, Q1, our cash CapEx was $20 million or $21 million, I think. We're expecting cash CapEx for the year to be $80 million, plus or minus.

但正如我們所指出的，我認為上個季度，即第一季度，我們的現金資本支出為 2000 萬美元或 2100 萬美元。我們預計今年的現金資本支出為 8,000 萬美元（上下）。

And that's in that 4% to 5% of revenue range, which we talk about as kind of our long-term swim lane for CapEx, making sure that we continue to invest in technology as well as capacity challenges and being a good corporate citizen relative to environmental safety and whatnot.

這佔收入的 4% 到 5% 範圍，我們將其視為資本支出的長期泳道，確保我們繼續投資於技術和產能挑戰，並成為良好的企業公民親戚環境安全等等。

So that's pretty consistent, and we can turn that down if we need to if the economy is soft, but that's certainly not a situation that we're looking at this year.

因此，這是相當一致的，如果經濟疲軟，我們可以根據需要將其調低，但這肯定不是我們今年要考慮的情況。

In terms of cash flow from operations, generally speaking, we're -- we expect to be relatively consistent, but Q1 always is a little softer than the rest of the quarters. If you look year-over-year, our Q1 cash flow from operations is up significantly compared to last year.

就營運現金流而言，一般來說，我們預計會相對穩定，但第一季總是比其他季度稍微疲軟。如果與去年同期相比，我們第一季的營運現金流量與去年相比大幅增加。

And then we tend to do better as we go through the year. We're targeting -- we'd like to be around 10% of revenue in terms of our cash flow from operations. But that's subject to a lot of different variables.

然後，隨著這一年的過去，我們往往會做得更好。我們的目標是——我們希望營運現金流佔收入的 10% 左右。但這受到很多不同變數的影響。

Profit, obviously, is a key piece of that as well as managing working capital. And we are -- we have programs in place internally where we're working to make sure that we're managing both of those aspects appropriately.

顯然，利潤以及管理營運資金是其中的關鍵部分。我們 - 我們在內部製定了計劃，我們正在努力確保我們適當地管理這兩個方面。

So I think we're looking for good consistency. Yes, we had some potential with the sale of mobility business, and winding down that working capital helped us a little bit last year. But we will still be producing some pretty strong numbers, and I think we'll be very proud of them by the end of the year here.

所以我認為我們正在尋找良好的一致性。是的，我們在出售行動業務方面有一些潛力，去年減少營運資金對我們有一些幫助。但我們仍然會產生一些相當強勁的數字，我認為到今年年底我們會為此感到非常自豪。

Thank you. And this concludes our question-and-answer portion for today's teleconference. I would now like to turn it back over to Tom.

謝謝。今天電話會議的問答部分就到此結束。我現在想把它轉回給湯姆。

I'd just like to close by summarizing some of the critical points. First, we delivered revenues and earnings above the midpoint of guidance. That's despite some of the challenges we had from COVID-19, currency and supply chain.

最後我想總結一些關鍵點。首先，我們的收入和收益高於指導中點。儘管我們面臨著來自 COVID-19、貨幣和供應鏈的一些挑戰。

Second, our end market diversification really enabled solid year-on-year growth in the mid-single digits. And third, we generated strong cash flow and we issued new bonds at a lower rate than the ones we redeemed.

其次，我們的終端市場多元化確實實現了中個位數的穩健年成長。第三，我們產生了強勁的現金流，我們以低於贖回債券的利率發行了新債券。

So in closing, I'd like to thank our employees again for all of their efforts, our customers, our investors as well for your continued support as we navigate our business challenges and we continue on our long-term strategic direction. Thank you very much, and thank you for the questions. Take care.

最後，我要再次感謝我們的員工所做的一切努力、我們的客戶、我們的投資者以及你們在我們應對業務挑戰和繼續我們的長期策略方向時所給予的持續支持。非常感謝您，也感謝您提出的問題。小心。

Thank you, ladies and gentlemen, for participation in today's teleconference. You may now disconnect.

女士們、先生們，感謝你們參加今天的電話會議。您現在可以斷開連線。