TTM Technologies Inc (TTMI) 2020 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the TTM Technologies Fourth Quarter 2020 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded today, February 3, 2021. Sameer Desai, TTM's Senior Director of Corporate Development and Investor Relations, will now review TTM's disclosure statement.

女士們、先生們，午安。感謝您的耐心等待，歡迎參加 TTM Technologies 2020 年第四季財務業績電話會議。 （操作員說明）謹此提醒，本次會議將於今天（2021 年 2 月 3 日）進行錄製。

All right. Thank you. 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 the factors explained in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission.

好的。謝謝。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 表格年度報告和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. Please refer to the disclosures regarding the risks that may affect TTM, which may be found in reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the company's other SEC filings.

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。請參閱有關可能影響 TTM 的風險的揭露，這些資訊可以在表格 10-K、10-Q、8-K 的報告、表格 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 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 at www.ttm.com. We have also posted on this website a slide deck, which we will refer to during the call.

我們也會在本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。我們還在該網站上發布了幻燈片，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 fourth quarter 2020 conference call. These continue to be challenging times, and I hope that all of you and your families are safe and healthy.

謝謝你，薩米爾。下午好，感謝您參加我們的 2020 年第四季電話會議。現在仍然是充滿挑戰的時期，我希望你們所有人和你們的家人安全健康。

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 fourth quarter results. Todd Schull, our CFO, will follow with an overview of our Q4 2020 financial performance and our Q1 2020 guidance. We will then open the call to your questions.

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四季度的業績。我們的財務長 Todd Schull 隨後將概述我們 2020 年第四季的財務表現和 2020 年第一季的指導。然後我們將開始電話詢問您的問題。

I am pleased to report that in the fourth quarter of 2020, TTM generated revenues above the midpoint of guidance and non-GAAP EPS above the guided range. All end markets performed better than guidance, while year-on-year growth in the automotive and defense end markets was offset by weakness in the medical, industrial and instrumentation and networking and telecom end markets.

我很高興地報告，2020 年第四季度，TTM 的收入高於指導中點，非 GAAP 每股收益高於指導範圍。所有終端市場的表現均優於預期，而汽車和國防終端市場的年增長被醫療、工業和儀器儀表以及網路和電信終端市場的疲軟所抵消。

In addition, continued strong operational execution overcame production inefficiencies and extra costs due to COVID-19. The COVID-19 pandemic has created operational difficulties, macroeconomic uncertainty and employee concerns. I am extremely proud of how TTM employees have worked to deliver excellent performance despite the formidable and unprecedented challenges of this environment.

此外，持續強勁的營運執行克服了因 COVID-19 導致的生產效率低下和額外成本。 COVID-19 大流行造成了營運困難、宏觀經濟不確定性和員工擔憂。我對迅達員工在面臨前所未有的嚴峻挑戰的情況下仍努力提供卓越績效感到非常自豪。

I'd also like to highlight that in Q4, we repaid and settled our $250 million convertible bond with no dilution to shareholders. Solid cash flow from operations drove our net debt-to-EBITDA ratio to 1.4 at the end of Q4. Finally, we announced a $100 million share repurchase program as an additional tool to increase shareholder value following the strengthening of our balance sheet.

我還想強調的是，在第四季度，我們償還並結算了 2.5 億美元的可轉換債券，沒有稀釋股東權益。穩健的營運現金流使我們的淨負債與 EBITDA 比率在第四季末達到 1.4。最後，我們宣布了一項 1 億美元的股票回購計劃，作為加強資產負債表後增加股東價值的額外工具。

For the full year 2020, excluding divested and closed businesses, TTM grew 3%, with solid profitability despite headwinds from COVID-19 and the strengthening Chinese currency. Full year cash flow from operations was $287.2 million, and along with the sale of the mobility business, enabled us to repay debt and reduce leverage, putting us in a strong position for the future.

2020 年全年，不包括剝離和關閉的業務，TTM 增長了 3%，儘管面臨 COVID-19 和人民幣升值的不利因素，但盈利能力依然穩健。全年營運現金流為 2.872 億美元，加上行動業務的出售，使我們能夠償還債務並降低槓桿率，使我們在未來處於有利地位。

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 over time, investors will be rewarded with more stable growth, strong cash flow performance and improving margins. A key part of that strategy will be to add capabilities and products that are complementary to our current offerings, both internally and through acquisitions. Looking forward, our balance sheet is in a strong position to pursue further acquisitions as well as to support our organic investment needs.

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更少的周期性和更具差異化的業務。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。該策略的關鍵部分是透過內部和收購增加與我們當前產品互補的能力和產品。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. For the majority of 2020, we managed through COVID-19 with relatively minor impact to our production. Currently, the combination of colder weather in North America and the recent holiday season has created a surge of COVID cases. Since many of these infections are occurring in regions where our manufacturing locations -- our plants are located, we have also seen an increase of COVID cases within our employee population in North America, and we expect this condition to continue into 2021.

我還想向您通報新冠肺炎疫情的最新情況。在 2020 年的大部分時間裡，我們都成功度過了 COVID-19，對我們的生產影響相對較小。目前，北美寒冷的天氣加上最近的假期，導致新冠病例激增。由於其中許多感染發生在我們的生產基地（我們的工廠所在的地區），我們也發現北美員工的新冠肺炎病例有所增加，我們預計這種情況將持續到 2021 年。

While many of those that were infected returned to work after being cleared following testing and quarantine protocols, we still have a number of employees in quarantine, which is causing some production inefficiencies. We continue to conduct rapid testing, contact tracing and to quarantine individuals who were in close contact with infected team members, in addition to deep cleaning affected work areas. We also continue other measures such as extensive internal communications, masking, temperature checks and proper distancing in our facilities worldwide. Because of the stringent preventative measures in place and our culture of transparency and communications, these events have had less impact on our operations than might have been the case without these precautions.

雖然許多感染者在經過檢測和隔離協議後被清除後返回工作崗位，但我們仍有一些員工處於隔離狀態，這導致了一些生產效率低下。除了深度清潔受影響的工作區域外，我們還繼續進行快速檢測、接觸者追蹤並隔離與受感染團隊成員密切接觸的個人。我們也繼續採取其他措施，例如廣泛的內部溝通、佩戴口罩、體溫檢查以及在我們全球各地的設施中保持適當的距離。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，這些事件對我們營運的影響比沒有這些預防措施的情況要小。

Now I'd like to review our end markets. All historical end market disclosures exclude the mobility business unit and the 2 EMS plants withheld in production in December. For more details on end market disclosures, please refer to our fourth quarter earnings press release and Pages 4 and 5 of our earnings presentation, both of which are posted on our website.

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 12 月停止生產的 2 個 EMS 工廠。有關終端市場披露的更多詳細信息，請參閱我們的第四季度收益新聞稿以及收益報告的第 4 頁和第 5 頁，兩者均發佈在我們的網站上。

The aerospace and defense end market represented 38% of total fourth quarter sales compared to 37% of Q4 2019 sales and 37% of sales in Q3 2020. We expect sales in Q1 from this end market to represent about 36% of our total sales. We saw solid growth in our A&D segment, with Q4 revenues up 2% year-on-year to a record high and an A&D record program backlog of $687 million compared to $600 million in the year ago quarter.

航空航太和國防終端市場佔第四季總銷售額的38%，而2019 年第四季銷售額為37%，2020 年第三季銷售額為37%。金額將占我們總銷售額的36% 左右。我們的 A&D 部門實現了穩健成長，第四季營收年增 2%，創歷史新高，A&D 專案積壓金額創紀錄，達到 6.87 億美元，而去年同期為 6 億美元。

Strength in defense more than offset weakness in the commercial aerospace end market. 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 AESA Radar systems; for Raytheon's Army/Navy transportable surveillance radar to protect against ballistic missiles; Lockheed SPY-7, a variant of the U.S. LRDR program for the F110 Spanish frigate; as well as Northrop's upgrade of F-16 fighter jets with scalable, agile beam radar.

國防實力足以抵銷商業航空終端市場的疲軟。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 AESA 雷達系統的大量預訂；雷神公司的陸軍/海軍便攜式監視雷達可防禦彈道飛彈；洛克希德 SPY-7，美國 LRDR 計劃的 F110 西班牙護衛艦的變體；以及諾斯羅普對 F-16 戰鬥機的升級，配備可擴展、靈活的波束雷達。

For the full year, aerospace and defense increased 7% and reached a record high as TTM benefited from increased defense spending and demand for multiple new programs. We were pleased to see the 2021 NDAA passed into law with bipartisan support, which suggests that defense budgets could stay stable at a high level going forward. Given our solid program alignment, we would expect to outperform broader defense budget growth.

全年航空航太和國防業務成長了 7%，並創下歷史新高，這得益於 TTM 受益於國防支出的增加和對多個新項目的需求。我們很高興看到 2021 年 NDAA 在兩黨支持下通過成為法律，這表明國防預算未來可以保持在高水準穩定。鑑於我們堅實的計劃一致性，我們預計將超越更廣泛的國防預算成長。

In 2021, we expect growth to be in line with market projections of 2% to 4%, driven by the defense side of our business. We expect the commercial aerospace portion, which was 16% of our A&D market in 2020, to be down in 2021.

2021 年，在我們業務的國防方面的推動下，我們預計成長將符合 2% 至 4% 的市場預測。我們預計商業航空航太部分（2020 年佔 A&D 市場的 16%）到 2021 年將下降。

Automotive sales represented 17% of total sales during the fourth quarter of 2020 compared to 15% in the year ago quarter and 13% during the third quarter of 2020. Automotive grew almost 40% sequentially following the growth in Q3, and returned to year-on-year growth of 14%. We expect automotive to contribute 18% of total sales in Q1.

2020 年第四季，汽車銷售佔總銷售量的17%，去年同期為15%，2020 年第三季為13%。同期水準。我們預計汽車產業將佔第一季總銷售額的 18%。

For the full year, automotive declined 11% as both demand and supply were affected by COVID-19 in the first half of the year, followed by a recovery in the second half of the year. In 2020, advanced technology was 26% of our automotive end market compared to 20% in 2019. For the full year, we won design wins with a lifetime value of $629 million compared to $475 million in 2019. In 2021, due to the anticipated stronger start, we expect the market to be above longer-term forecasts of 3% to 6%.

由於上半年需求和供應均受到 COVID-19 的影響，汽車產業全年下降了 11%，隨後下半年開始復甦。 2020 年，先進技術占我們汽車終端市場的26%，而2019 年為20%。由於預期由於開局強勁，我們預計市場成長率將高於 3% 至 6% 的長期預測。

The medical/industrial/instrumentation end market contributed 16% of our total sales in the fourth quarter compared to 17% in the year-ago quarter and 19% in the third quarter of 2020. For the first quarter, we expect this market to be 16% of revenues. For the full year, MI&I grew 12%, well above the trend line due to strength in our instrumentation customers, specifically, automated test equipment, and strength in our medical customers, particularly for emergency requirements of printed circuit boards in use in ventilators and patient monitoring systems applied to the treatment of COVID-19. In 2021, we expect growth to be below the 2% to 4% forecast as these segments see moderated demand following the extraordinary strength of 2020.

醫療/工業/儀器終端市場占我們第四季總銷售額的 16%，而去年同期為 17%，2020 年第三季為 19%。全年，MI&I 成長12%，遠高於趨勢線，這得益於我們的儀器客戶（特別是自動化測試設備）的實力，以及我們醫療客戶的實力（特別是呼吸器和病人使用的印刷電路板的緊急需求）用於治療 COVID-19 的監測系統。 2021 年，我們預計成長將低於 2% 至 4% 的預測，因為這些細分市場的需求在 2020 年的強勁成長之後放緩。

Networking/communications accounted for 16% of revenue during the fourth quarter of 2020. This compares to 17% in the fourth quarter of 2019 and 17% of revenue in the third quarter of 2020. We saw relative strength in the networking segment compared to the telecom segment as 5G builds paused temporarily. In Q1, we expect this end market to be 15% of revenue, due primarily to uncertainty around the timing and ramp of Phase 3 build for 5G in China. For the full year, networking/communications declined 4%. We expect this market to grow but be below the longer-term forecast of 5% to 8% growth in 2021, due to the anticipated soft start in the early part of the year, followed by a ramp of 5G infrastructure needs in the back half of the year, complemented by growth in networking.

網路/通訊佔 2020 年第四季營收的 16%。第一季度，我們預計該終端市場將佔營收的 15%，這主要是由於中國 5G 第三階段建設的時間和進度存在不確定性。全年網路/通訊下降 4%。我們預計該市場將會成長，但低於 2021 年 5% 至 8% 成長的長期預測，因為預計今年年初將出現軟啟動，隨後下半年 5G 基礎設施需求將出現成長年度最佳，並輔以網路的成長。

Sales in the computing/storage/peripherals end market represented 13% of total sales in the fourth quarter compared to 13% in Q4 of 2019 and in the third quarter of 2020. This end market was up 2% year-on-year as growth in our semiconductor customers offset modest year-on-year declines from our data center customers. We expect revenues in this end market to represent approximately 14% of first quarter sales. For the full year, computing grew 9% as we saw growth across our data center and semiconductor customers. In 2021, we expect to be above the forecasted end market growth of 1% to 3%, driven primarily by data center growth.

計算/儲存/週邊終端市場的銷售額佔第四季總銷售額的13%，而2019年第四季和2020年第三季的這一比例為13%。成長2%我們的半導體客戶的收入抵銷了我們資料中心客戶的年比小幅下降。我們預計該終端市場的營收將佔第一季銷售額的 14% 左右。隨著我們的資料中心和半導體客戶的成長，全年計算業務成長了 9%。 2021 年，我們預計終端市場成長率將高於 1% 至 3% 的預測，這主要是由資料中心成長所推動的。

Next, I'll cover some details from the fourth quarter. Note that all of the following operations metrics exclude the mobility business unit and the 2 EMS plants that we closed. This information is also available on Page 6 of our earnings presentation.

接下來，我將介紹第四季的一些細節。請注意，以下所有營運指標均不包括行動業務部門和我們關閉的 2 家 EMS 工廠。此資訊也可在我們的收益簡報的第 6 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 27% 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 markets.

本季度，我們的先進技術業務（包括 HDI、剛柔結合以及 RF 子系統和組件）約占我們收入的 31%。相比之下，去年同期約為 27%，第三季約為 29%。我們將繼續尋求新的商機並增加客戶設計參與活動，從而在新市場中利用我們的先進技術能力。

Capacity utilization in Asia Pacific was 63% in Q4 compared to 61% in the year-ago quarter and 63% in Q3. Our overall capacity utilization in North America was 58% in Q3 compared to 58% in the year-ago quarter and 61% in Q3. Our top 5 customers contributed 34% of total sales in the fourth quarter of 2020 compared to 36% in the third quarter of 2020. Our largest customer accounted for 14% of sales in the fourth quarter. At the end of Q4, our 90-day backlog, which is subject to cancellations, was $483.9 million, compared to $402.8 million at the end of the fourth quarter last year and $437.8 million at the end of Q3. Our PCB book-to-bill ratio was 1.19 for the 3 months ending December 28.

第四季亞太地區的產能利用率為 63%，去年同期為 61%，第三季為 63%。第三季我們在北美的整體產能利用率為 58%，去年同期為 58%，第三季為 61%。我們的前 5 名客戶貢獻了 2020 年第四季總銷售額的 34%，而 2020 年第三季為 36%。截至第四季末，我們的 90 天積壓訂單（可能被取消）為 4.839 億美元，而去年第四季末為 4.028 億美元，第三季末為 4.378 億美元。截至 12 月 28 日的 3 個月，我們的 PCB 訂單出貨比為 1.19。

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. Their efforts are particularly appreciated during these times by our customers in critical essential areas like defense and the medical industries. Despite the COVID-19 and currency-related challenges we faced in 2020, our business performed better than we expected as a direct result of operational excellence, end market diversification and 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.

最後，我要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。在此期間，我們的客戶在國防和醫療行業等關鍵領域特別讚賞他們的努力。儘管我們在2020 年面臨COVID-19 和貨幣相關的挑戰，但我們的業務表現優於我們的預期，這是卓越營運、終端市場多元化以及我們員工為吸引和支持客戶而共同努力的直接結果。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 fourth quarter. Todd?

現在托德將回顧我們第四季的財務表現。托德？

Thanks, Tom, and good afternoon, everyone. As Tom mentioned earlier, in 2020, TTM announced the closing of the sale of its mobility business unit. As such, the disclosure of TTM's GAAP results reflects the mobility business unit as a discontinued operation. During this call, I will discuss non-GAAP financial information, which excludes the results of the mobility business unit. The EMS business unit is still included in both the GAAP and non-GAAP results we have reported. Please refer to the earnings schedule for additional details on exited businesses and continuing operations. Page 7 of our earnings presentation and the appendix of our investor presentation also contain this information.

謝謝湯姆，大家下午好。正如 Tom 之前提到的，2020 年，TTM 宣布完成其行動業務部門的出售。因此，TTM 的 GAAP 業績揭露表明行動業務部門已停止營運。在這次電話會議中，我將討論非公認會計準則財務信息，其中不包括行動業務部門的業績。 EMS 業務部門仍包含在我們報告的 GAAP 和非 GAAP 業績中。有關退出業務和持續經營業務的更多詳細信息，請參閱收益表。我們的收益報告第 7 頁和投資者報告的附錄也包含此資訊。

For the fourth quarter, net sales from continuing operations were $523.8 million compared to $535.7 million in the fourth quarter of 2019. The year-over-year decrease in revenue was due to declines in our medical/industrial/instrumentation and networking/telecom end markets, with roughly 1/3 of the decline coming from the EMS plant, which we have closed. This was particularly -- or excuse me, this was partially offset by growth in our automotive, aerospace and defense, and computing end markets. Excluding the impact of the 2 EMS plants being shut down, our revenues were down 1.1% year-on-year.

第四季度，持續經營業務的淨銷售額為 5.238 億美元，而 2019 年第四季為 5.357 億美元 營收年減是由於我們的醫療/工業/儀器儀表和網路/電信終端市場下降，約1 /3 的下降來自我們已經關閉的EMS 工廠。這尤其是——或者請原諒，這部分被我們的汽車、航空航太和國防以及計算終端市場的成長所抵消。剔除2家EMS廠關閉的影響，我們的營收年減1.1%。

GAAP operating income from continuing operations for the fourth quarter of 2020 was $29.2 million compared to GAAP operating income of $29.4 million in the fourth quarter of last year. On a GAAP basis, net income from continuing operations in the fourth quarter of 2020 was $39 million or $0.34 per diluted share. This compares to a net income of $10.8 million or $0.10 per diluted share in the fourth quarter of 2019.

2020 年第四季持續經營業務的 GAAP 營業收入為 2,920 萬美元，而去年第四季的 GAAP 營業收入為 2,940 萬美元。以 GAAP 計算，2020 年第四季持續經營淨利為 3,900 萬美元，即稀釋後每股收益 0.34 美元。相比之下，2019 年第四季的淨利潤為 1,080 萬美元，即稀釋後每股收益 0.10 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 and 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 comparison with expectations in prior periods.

我其餘的評論將集中於我們的非公認會計準則財務表現。我們的非公認會計準則績效不包括我們剝離的行動業務部門、非常規稅務項目、併購相關和重組成本、某些非現金費用項目以及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，使投資者能夠透過管理層的視角了解公司，並便於與前期預期進行比較。

Gross margin in the fourth quarter was 17.5% compared to 19.1% in the fourth quarter of 2019. The year-over-year decrease in gross margin was due to lower revenue, COVID-19-related costs and associated labor inefficiencies, and foreign exchange headwinds which increased our China-based costs. Selling and marketing expense was $15.2 million in the fourth quarter or 2.9% of net sales versus $17 million or 3.2% of net sales a year ago. Fourth quarter G&A expense was $24.4 million or 4.7% of net sales compared to $29.8 million or 5.6% of net sales in the same quarter a year ago.

第四季的毛利率為 17.5%，而 2019 年第四季為 19.1%。成本。 第四季銷售和行銷費用為 1,520 萬美元，佔淨銷售額的 2.9%，而去年同期為 1,700 萬美元，佔淨銷售額的 3.2%。第四季管理及行政費用為 2,440 萬美元，佔淨銷售額的 4.7%，而去年同期為 2,980 萬美元，佔淨銷售額的 5.6%。

In Q4 net 2020, R&D was $4.6 million or 0.87% of revenues. This compares to $4.3 million or 0.81% in the year ago quarter. Our operating margin in Q4 was 9%. This compares to 9.6% in the same quarter last year. Interest expense was $11.6 million in the fourth quarter, a decrease of $4.8 million from the same quarter last year due to lower interest rates and the term loan repayment of $400 million.

2020 年第四季淨研發費用為 460 萬美元，佔營收的 0.87%。相比之下，去年同期成長了 430 萬美元，即 0.81%。我們第四季的營業利益率為 9%。相比之下，去年同期為 9.6%。第四季利息支出為1,160萬美元，比去年同期減少480萬美元，原因是利率下降以及定期貸款償還4億美元。

During the quarter, we recorded $5.3 million of foreign exchange losses. Government incentives reduced the net loss to $1.9 million or approximately $0.02 of EPS. This compares to a loss of $1.8 million or approximately $0.01 of EPS in Q4 of last year. Our effective tax rate was a negative 19% in the fourth quarter due to a change in the non-GAAP full year tax rate from 15% to 6%.

本季度，我們錄得 530 萬美元的外匯損失。政府激勵措施將淨虧損減少至 190 萬美元，即每股收益約 0.02 美元。相比之下，去年第四季虧損 180 萬美元，即每股收益約 0.01 美元。由於非 GAAP 全年稅率從 15% 變更為 6%，我們第四季的有效稅率為負 19%。

Fourth quarter net income was $40.2 million or $0.37 per diluted share. This compares to fourth quarter 2019 net income of $27.5 million or $0.26 per diluted share. Adjusted EBITDA for the fourth quarter was $68.2 million or 13% of net sales compared with fourth quarter 2019 adjusted EBITDA of $72.8 million or 13.6% of net sales. Depreciation for the fourth quarter was $22.7 million. Net capital spending for the quarter was $18.7 million.

第四季淨利為 4,020 萬美元，或攤薄後每股收益 0.37 美元。相比之下，2019 年第四季淨利潤為 2,750 萬美元，即稀釋後每股收益 0.26 美元。第四季調整後 EBITDA 為 6,820 萬美元，佔淨銷售額的 13%，而 2019 年第四季調整後 EBITDA 為 7,280 萬美元，佔淨銷售額的 13.6%。第四季折舊額為 2,270 萬美元。該季度淨資本支出為 1870 萬美元。

Our balance sheet and liquidity positions remained very strong. Cash flow from operations was $55.5 million in the fourth quarter or 10.6% of revenue. Cash and cash equivalents at the end of the fourth quarter 2020 were $451.2 million. This cash number is after we paid $250 million to settle our convertible bond on December 15. This cash number -- excuse me, at the end of the fourth quarter, 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。第四季營運現金流為 5,550 萬美元，佔營收的 10.6%。截至 2020 年第四季末，現金和現金等價物為 4.512 億美元。這個現金數字是我們在12 月15 日支付2.5 億美元結算可轉換債券後的數字。 。

During the quarter, we also received a 2-notch upgrade from Moody's to BA2. As Tom mentioned in his comments, today, we announced the 2-year $100 million share repurchase program. As we continue to transform our company, we have modified our capital allocation strategy. M&A will start -- will still be our priority for increasing shareholder value, but as the company becomes more consistent in its cash-generating performance, we believe that we can utilize both tools to increase shareholder value.

本季度，我們也獲得了穆迪評級 2 級的升級至 BA2。正如湯姆在評論中提到的，今天，我們宣布了為期 2 年 1 億美元的股票回購計畫。隨著我們繼續對公司進行轉型，我們修改了資本配置策略。併購將開始－仍然是我們增加股東價值的首要任務，但隨著公司的現金產生績效變得更加一致，我們相信我們可以利用這兩種工具來增加股東價值。

Now I'd like to turn to our guidance for the first quarter. Looking ahead, we believe that COVID-19 may continue to cause end market demand disruptions, supply chain challenges as well as inefficiencies with our own production. With this in mind, we estimate total revenue for the first quarter of 2021 to be in the range of $490 million to $530 million. We expect non-GAAP earnings to be in the range of $0.19 to $0.25 per diluted share. 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.

現在我想談談我們對第一季的指導。展望未來，我們認為 COVID-19 可能會繼續造成終端市場需求中斷、供應鏈挑戰以及我們自己的生產效率低下。考慮到這一點，我們預計 2021 年第一季的總營收將在 4.9 億至 5.3 億美元之間。我們預計非 GAAP 攤薄後每股收益將在 0.19 美元至 0.25 美元之間。 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。

We believe -- we expect that SG&A expense will be about 8.4% of revenue in the first quarter and R&D to be about 1% of revenue. We expect interest expense to total approximately $11 million. And finally, we estimate our effective tax rate to be between 10% and 15%.

我們相信—我們預計第一季銷售、管理和行政費用將佔營收的 8.4% 左右，研發費用將佔營收的 1% 左右。我們預計利息支出總計約 1,100 萬美元。最後，我們估計有效稅率在 10% 到 15% 之間。

To assist you in developing your financial models, we offer the following additional information. During the first quarter, we expect to record amortization of intangibles of about $10.9 million; stock-based compensation expense of $4.7 million; noncash interest expense of approximately $0.5 million; and we estimate depreciation expense will be approximately $22 million.

為了幫助您開發財務模型，我們提供以下附加資訊。第一季度，我們預計無形資產攤銷約 1,090 萬美元；股票補償費用為 470 萬美元；非現金利息支出約 50 萬美元；我們預計折舊費用約為 2,200 萬美元。

Finally, I'd like to announce that we'll be participating virtually in the Cowen Aerospace/Defense & Industrial Conference on February 9; the JPMorgan leveraged finance and high yield conference on March 1; and the Truist technology, networking and services conference on March 9.

最後，我想宣布，我們將虛擬參加 2 月 9 日舉行的考恩航空航天/國防與工業會議； 3月1日摩根大通槓桿融資和高收益會議；以及 3 月 9 日舉行的 Truist 技術、網路和服務會議。

That concludes the prepared remarks. And now we'd like to open the line for questions. Tolari?

準備好的發言到此結束。現在我們想開通提問專線。托拉里？

(Operator Instructions) We'll move to take our first question from Matt Sheerin with Stifel.

（操作員說明）我們將開始回答 Matt Sheerin 和 Stifel 提出的第一個問題。

I wanted to ask a question regarding the forward guidance. So backing into the gross margin number, it looks like that's going to be down sequentially on modest revenue decline. So I'm trying to figure out what are the drivers of that. I know that there -- we are hearing on a lot of these conference calls that there are incremental costs, supply costs, logistics costs, materials costs. I know you spent a lot on copper and other things. So are there any cost headwinds that you're seeing in the next quarter or 2?

我想問一個有關前瞻性指引的問題。因此，回到毛利率數字，看起來毛利率將因收入小幅下降而連續下降。所以我試著找出造成這種情況的驅動因素是什麼。我知道，我們在許多電話會議上都聽到，有增量成本、供應成本、物流成本、材料成本。我知道你在銅和其他東西上花了很多錢。那麼您在下一兩季會看到任何成本阻力嗎？

Well, are you going sequentially or year-over-year, Matt?

嗯，你是按順序去還是逐年去，馬特？

Well, year-over-year, it looks like you're -- sequentially, sequentially.

嗯，年復一年，看起來你是——依次，依次。

Okay, sequentially. So when we look at Q1 compared to Q4 and looking at our gross margins, you're right to observe that, that would be down slightly sequentially on the margin line. What's really driving that for us is obviously, our revenue is down sequentially a little bit. Now a lot of that comes from the EMS business, which -- for the 2 closed plants that we completed production in Q4. And so there's a little bit of profit that goes away from that. But also what we have is we have Chinese New Year in Q1. We obviously didn't have that in Q4. And although revenue was stronger in Asia, we have to work through that Chinese New Year and you have to pay holiday pay, which is a bit of a headwind. And then, of course, we continue to challenge -- be challenged with the strengthening Chinese currency, which sequentially is a modest increase. We've watched that every day. Year-over-year, it's a bigger headwind. So those are the 3 really big issues that are affecting us. I think sequentially, the COVID issue was pretty challenging in Q4. We expect it to be the similar in Q1, so that's not really a variance sequentially.

好的，依序。因此，當我們將第一季與第四季進行比較並查看我們的毛利率時，您會發現，毛利率將在利潤線上略有下降。對我們來說真正推動這一趨勢的顯然是我們的收入連續下降了一點。現在，其中很大一部分來自 EMS 業務，我們在第四季度完成了 2 個關閉工廠的生產。因此，這會帶來一點利潤。但我們所擁有的是第一季的農曆新年。顯然我們在第四季沒有做到這一點。儘管亞洲的收入更強勁，但我們必須度過農曆新年，而且必須支付假期工資，這有點不利。然後，當然，我們會繼續面臨挑戰——受到人民幣走強的挑戰，人民幣隨後會小幅上漲。我們每天都在看這個。與去年同期相比，這是一個更大的阻力。這些是影響我們的三個真正大的問題。我認為，第四季的新冠疫情問題相當具有挑戰性。我們預計第一季的情況是相似的，因此這並不是真正的連續差異。

Okay. And on that COVID issue, could you quantify perhaps the number of employees that have been affected and the cost associated with that, maybe on a basis point metric, in terms of the headwind that you're seeing?

好的。關於新冠肺炎問題，您能否根據您所看到的不利因素，以基點指標來量化受影響的員工數量以及與之相關的成本？

Well, I'll let Tom comment on the employee information. But in regards to cost, the -- there's certainly direct out-of-pocket costs for things like masks and extra cleaning expenses and things like that which we can quantify. That part of it is relatively modest. What's proving to be the bigger challenge is, although our plants are open, when you have a very significant sickness, or quarantine as a precautionary measure to avoid people getting sick, you have production inefficiencies. The department might be down 1 day or you have to work overtime to keep up production schedule. Those are the kind of production inefficiencies that we were referring to that were much more pronounced for us in Q4, and we expect to have some additional challenges in Q1. A direct quantification is difficult to do, but it was a substantial amount in terms of the impact that we could see in terms of our labor efficiency. Tom, did you want to add anything to that?

好吧，我會讓湯姆評論一下員工資訊。但就成本而言，口罩和額外清潔費用等我們可以量化的費用肯定是直接自付費用。這部分內容相對較小。事實證明，更大的挑戰是，儘管我們的工廠是開放的，但當你患了非常嚴重的疾病，或者為了避免人們生病而採取隔離措施時，你的生產效率就會低下。部門可能會停工 1 天，或者您必須加班才能跟上生產進度。這些就是我們提到的生產效率低下的情況，在第四季度對我們來說更為明顯，我們預計在第一季會遇到一些額外的挑戰。直接量化很難做到，但就我們可以看到的對勞動效率的影響而言，這是一個很大的數字。湯姆，你想補充什麼嗎？

Yes. I would just add a couple of things. One is the other inefficiency, Matt, and we've talked about this in the past. We have a structure, particularly in North America, because our plants are smaller, we will -- when they're dealing with challenges around new products, potential complexities of technology, we bring in tiger teams from our other plants. We also had a lot of involvement, hands-on from management. Obviously, with the situation with COVID, we've been prevented from doing that, from organizing that kind of assistance. And that goes into that production inefficiency that Todd talked about. Very difficult to quantify, but clearly, an impact on yield and also an impact on total production.

是的。我只想補充幾件事。一個是另一個低效率，馬特，我們過去已經討論過這個問題。我們有一個結構，特別是在北美，因為我們的工廠規模較小，當他們應對新產品的挑戰、潛在的技術複雜性時，我們會從其他工廠引入老虎團隊。我們也得到了管理層的大量參與和親自指導。顯然，在新冠疫情的情況下，我們無法做到這一點，無法組織此類援助。這就是托德談到的生產效率低下的問題。很難量化，但很明顯，它對產量以及總產量的影響。

The other piece, in terms of labor force, about 10% to date of our labor force has been impacted by COVID during the course of this pandemic. So what we saw and I think others have seen is a real uptick in the incidents -- in cases starting mid-November, carrying through December into mid-January. We may be starting to see a little bit of tail off there. We're encouraged by that, but we're also being very careful. Given what has happened here, it seems like every social event leads to another influx of cases. And so we're very -- it's nice to see that the cases have started to come down a bit, but we're not counting on that.

另一方面，就勞動力而言，迄今為止，我們約有 10% 的勞動力在這次大流行期間受到了新冠疫情的影響。因此，我們和我認為其他人也看到了事件的真正增加——從 11 月中旬開始，一直持續到 1 月中旬。我們可能會開始看到一些尾巴。我們對此感到鼓舞，但我們也非常小心。鑑於這裡發生的事情，似乎每一次社會事件都會導致病例再次湧入。因此，我們很高興看到病例數開始下降，但我們並不指望這一點。

We'll move next to William Stein with Truist Securities.

接下來我們將討論 Truist 證券公司的威廉‧史坦 (William Stein)。

Congrats on the good results and the buyback announcement. First, I'm wondering if COVID is restricting your revenue in any way, either in the Q4 results or the Q1 outlook.

祝賀良好的業績和回購公告。首先，我想知道新冠疫情是否以任何方式限制了您的收入，無論是第四季的業績還是第一季的前景。

I can jump in on that. Yes. Definitely, Will. And from the standpoint of productivity and our North America facilities, had an impact in Q4, will have an impact in Q1. And that's just -- yes, again, that impact on yields, that impact on total production. And Todd really hit on it. It's just -- it's difficult to forecast as you go into the quarter, but in different sales and production sales, we may be more impacted than other, and that causes an imbalance in the operations. So that absolutely impacts overall production, and therefore, revenue.

我可以參與其中。是的。當然，威爾。從生產力和我們的北美工廠的角度來看，在第四季度產生了影響，也將在第一季產生影響。這就是──是的，這又是對產量的影響，對總產量的影響。托德真的很感興趣。只是 - 當你進入本季度時很難預測，但在不同的銷售和生產銷售中，我們可能會比其他人受到更大的影響，這會導致營運不平衡。因此，這絕對會影響整體產量，進而影響收入。

I'm going to ask another, but I'll also ask if you have any way to quantify what the shortfall might have been like if you didn't have COVID. Putting the margin impact aside, how much potential revenue do you think you left on the table? But the follow-on question is, to what degree do you think you're being affected by shortages, either for your own business or from the perspective of your customers not being able to get chips to put on boards?

我會問另一個人，但我也會問你是否有任何方法來量化如果你沒有感染新冠病毒的話，缺口可能會是什麼樣子。撇開利潤影響不談，您認為您還剩下多少潛在收入？但接下來的問題是，您認為您在多大程度上受到短缺的影響，無論是對您自己的業務還是從您的客戶無法將晶片安裝到主機板的角度來看？

Sure. Yes. So in terms of impact on revenue, again, it is difficult to quantify. What I can tell you is if you look at Q1 as an example, in aerospace and defense, we're relatively flat. A piece of that, of course, is commercial aerospace being soft. But also a significant piece of that is our inability to get production out. And so if you think about what would be a normal growth rate in that aerospace and defense area, where -- and we talked about being in that 2% to 4% range, more towards the high end. Of course, last year, we grew 7%. It's clearly -- yes, the COVID situation is having an impact on that. There's also, of course, how bookings lay out in between quarters. But yes, COVID is pretty significant there.

當然。是的。因此，就對收入的影響而言，同樣很難量化。我可以告訴你的是，如果你以第一季為例，在航空航太和國防領域，我們相對持平。當然，其中一個原因是商用航空航太產業的軟實力。但其中一個重要因素是我們無法生產。因此，如果你考慮航空航太和國防領域的正常成長率是多少，我們談到了在 2% 到 4% 的範圍內，更接近高端。當然，去年我們成長了 7%。很明顯，是的，新冠疫情正在對此產生影響。當然，還有季度之間的預訂情況。但確實，新冠疫情在那裡相當重要。

In terms of other shortages and how they're impacting our business, I think, Will, you're referring really to components. And of course, we've been reading along with everyone else about the chip shortages, how that relates to automotive. What I'd tell you is yes, on the edges, we've seen shipments be affected by customers running into shortages. But it has not had a large impact on us. We are continuing, particularly in automotive, to monitor the situation carefully. And we're thrilled to see the bookings coming in as they have, but still watching those hub pulls out of inventory hubs to see if that is at all impacted. So far, so good, but I would expect eventually, that's going to trickle through the supply chain, that we would start to see more of an impact in terms of hub pulls. So that's what we're watching. So far, so good, but again, something to keep our eyes on.

就其他短缺及其對我們業務的影響而言，威爾，我認為您實際上指的是組件。當然，我們一直在與其他人一起閱讀有關晶片短缺的信息，以及這與汽車的關係。我要告訴你的是，是的，我們已經看到出貨受到客戶短缺的影響。但並沒有對我們產生太大的影響。我們正在繼續仔細監控局勢，特別是在汽車領域。我們很高興看到預訂量如常增加，但仍在觀察這些中心從庫存中心撤出，看看是否會受到影響。到目前為止，一切都很好，但我預計最終，這將滲透到供應鏈中，我們將開始看到樞紐拉力產生更多影響。這就是我們正在關注的。到目前為止，一切都很好，但同樣值得我們關注。

We'll move next to Steven Fox with Fox Advisors.

我們將轉到福克斯顧問公司的史蒂文·福克斯旁邊。

First question, I was curious if you could go into a little bit more detail on the big uptick in the percent of auto revenues tied to your advanced technologies. You said it went from 20% to 26%. So what advanced technologies was driving at and what end applications? And then I had a follow-up.

第一個問題，我很好奇您是否可以更詳細地介紹與先進技術相關的汽車收入百分比大幅上升的情況。你說它從 20% 上升到 26%。那麼，哪些先進技術正在推動哪些最終應用呢？然後我進行了跟進。

Sure. Yes, Steve, predominantly, that's RF that's driving it. RF going into ADAS, other -- and other autonomous vehicle-related sensor needs, but that's the bigger driver. A secondary factor is HDI and the impact of HDI positively. And that's more tied to infotainment and infotainment developments as miniaturization of components become more and more a factor, driving a need for HDI. So both of those areas, but more RF than anything else. So some of the bookings that we've talked about in the past in the ADAS area now translating into revenues.

當然。是的，史蒂夫，主要是射頻在推動它。射頻進入 ADAS、其他以及其他與自動駕駛汽車相關的感測器需求，但這是更大的驅動力。次要因素是 HDI 以及 HDI 的正面影響。隨著組件的小型化越來越成為一個因素，這與資訊娛樂和資訊娛樂的發展更加相關，從而推動了對 HDI 的需求。所以這兩個領域，但射頻比其他任何領域都多。因此，我們過去在 ADAS 領域討論過的一些預訂現在已轉化為收入。

Understood. And then in terms of the data center, the networking/communications area, can you just sort of talk a little bit more specifically about your expectations for 5G and data center? I guess you're still waiting to hear in terms of actual orders for China 5G, but I'd love to just sort of get your feel for maybe beyond Q1 in terms of how you're thinking about those markets?

明白了。那麼在資料中心、網路/通訊領域，您能否具體談談您對 5G 和資料中心的期望？我想您仍在等待中國 5G 的實際訂單，但我很想聽聽您對第一季之後的情況如何看待這些市場？

Sure. Yes. So I'm going to separate that discussion. And the way we look at 5G falls into our networking/communications end market. So I'll talk to that first, and then I'll talk a little bit about data center trends, which fall into our computing end market. On the networking/communications side, the 5G, what we thought last year was very -- a real strong demand coming out of China related to Phase 2 of their 5G investment. We've all been waiting for Phase 3. Initially, that was slated to start in the fall of last year. It was delayed to this year. The questions are really revolving around would it be before Chinese New Year or after. I would say definitively, it will be after Chinese New Year. And frankly, I think the Chinese government is monitoring the situation with Huawei, their design development, and will time Phase 3 for the right timing when Huawei and others are ready to provide the equipment. So there's a little bit of a -- I think that's where the uncertainty comes in. I think it is a first half of the year situation where we should see that.

當然。是的。所以我要把這個討論分開。我們看待 5G 的方式屬於我們的網路/通訊終端市場。因此，我將首先討論這一點，然後我將討論一些屬於我們的計算終端市場的資料中心趨勢。在網路/通訊方面，5G，我們去年認為中國對 5G 投資第二階段的需求非常強勁。我們一直在等待第三階段。就拖到今年了。問題其實圍繞著農曆新年之前還是之後。我可以肯定地說，那就是農曆新年之後。坦白說，我認為中國政府正在監視華為的情況及其設計開發，並將在華為和其他公司準備好提供設備時安排第三階段的正確時機。所以，我認為這就是不確定性出現的地方。

To give you a sense of, at least officially, what's out there, the Chinese government has said that last year, approximately 580,000 base stations were installed. And what they're calling for this year is closer to 600,000. And then what you can pick up -- and sort of the other factor is rest of world, which, frankly, was very small last year. It was -- the estimates from market forecasts are somewhere around 150,000 base stations as compared to that 600,000 in China. This year, I would expect to see -- or what the forecasters are expecting to see is a good uptick there, could be 250,000, could be north of that. I think anywhere between 250,000 and 400,000 are the forecasts that I've seen. That's going to be driven out of North America, and we're starting to see some of the initial signs of that, followed by Europe and then rest of Asia. So that activity is what we're starting to see a bit of here, which is encouraging. And then what we're waiting for from a real significant volume standpoint will be that China piece, combined with further rest of the world expansion through the course of the year. But that's why we've been pointing really this is more of a second half of the year phenomenon than the first half of the year, which we expect will be soft. In the meantime, networking will continue to be -- to pull us along in terms of that end market.

為了讓您至少官方地了解那裡的情況，中國政府表示去年安裝了大約 58 萬個基地台。他們今年呼籲的人數接近 60 萬人。然後你可以學到什麼——另一個因素是世界其他地區，坦白說，去年的規模非常小。市場預測的基地台數量約為 15 萬個，而中國的基地台數量為 60 萬個。今年，我預計會看到——或者預測者預計會看到大幅上升，可能會達到 25 萬，也可能會更高。我認為我所看到的預測數量在 250,000 到 400,000 之間。這將被趕出北美，我們開始看到一些初步跡象，其次是歐洲，然後是亞洲其他地區。因此，我們開始在這裡看到一些活動，這是令人鼓舞的。然後，從真正重要的銷售角度來看，我們等待的將是中國市場，以及今年全球其他地區的進一步擴張。但這就是為什麼我們一直指出這實際上更多是下半年的現象，而不是上半年，我們預計上半年會很疲軟。同時，網路將繼續推動我們在終端市場的發展。

In data center trends, always, always interesting. Last year, second quarter was phenomenal with the data requirements out there driving some very urgent needs for equipment. I would say that we've come off of that. Q4 was better than we expected, which is encouraging. I think Q1 looks good from a data center requirement standpoint. And again, I think the longer-term trends are there in terms of data needs that will help that data center demand to continue to grow this year. So encouraging on that side.

資料中心的趨勢總是非常有趣。去年第二季的數據需求非常驚人，推動了對設備的一些非常緊迫的需求。我想說我們已經擺脫這個困境了。第四季的表現好於我們的預期，令人鼓舞。我認為從資料中心需求的角度來看，第一季看起來不錯。再說一次，我認為資料需求的長期趨勢將有助於今年資料中心的需求持續成長。這方面非常令人鼓舞。

Next, we'll move to Jim Ricchiuti with Needham & Company.

接下來，我們將邀請 Needham & Company 的 Jim Ricchiuti。

You talked about the case flows increasing and the impact of COVID, an impact it's having on your workforce. And I'm just wondering, have you guys seen variability in some of the orders that are coming in from your customers that you think could be tied to this, whether it's in the U.S. or elsewhere, where we're seeing some case loads or cases increase?

您談到了案件流量的增加以及新冠疫情的影響，以及它對您的員工隊伍的影響。我只是想知道，你們是否看到了來自客戶的一些訂單的變化，您認為這些訂單可能與此有關，無論是在美國還是在其他地方，我們看到了一些案件負載或病例增加？

I'm not sure I caught all of that, Jim. Can you repeat just the last part of the question?

我不確定我是否聽懂了所有這些，吉姆。你能重複問題的最後部分嗎？

Yes. Hopefully, I'm not breaking up. But I was -- the question I had was just regarding the impact of COVID. I mean clearly, it's impact -- it had an impact on your workforce. And I'm just wondering if you're seeing the variability in orders that have been coming in from customers who themselves are being impacted by this? Are you able to see that at all yet? Or just curious if that's playing into any of the forecast?

是的。希望我不會分手。但我的問題只是關於新冠病毒的影響。我的意思很明確，它的影響——它對你的員工隊伍產生了影響。我只是想知道您是否看到來自受此影響的客戶的訂單出現變化？你能看到這一點嗎？或者只是好奇這會影響任何預測？

What I would say, and as we -- so again, it's primarily going to be aerospace and defense where we hear that. And I think the supply chain as a whole has been challenged. Our customers are moving programs around. I'd say it's pretty dynamic, but they're moving program needs around to accommodate the situation in the supply chain. And so far, I think they're doing a pretty good job of it, Jim, to allow -- certainly allow TTM and others to continue to ship. There is also, I think, part of this component, if you just think broadly about component shortages, part of that is probably impacted by the COVID situation as well. And so it's hard to separate the 2. But I would say that overall, customers are adjusting to this and they're allowing us to continue shipments on critical programs and adjusting these as they look out over several quarters. But I think, again, they've done a really good job of handling what is a very complex supply chain situation.

我想說的是，正如我們所說，我們聽到的主要是航空航天和國防領域。我認為整個供應鏈都受到了挑戰。我們的客戶正在四處移動程式。我想說這是非常動態的，但他們正在改變計劃需求以適應供應鏈中的情況。到目前為止，我認為他們做得很好，吉姆，允許——當然允許 TTM 和其他公司繼續發貨。我認為，如果你廣泛考慮零件短缺問題，其中一部分也可能受到新冠疫情的影響。因此，很難將兩者分開。但我再次認為，他們在處理非常複雜的供應鏈情況方面做得非常好。

I know you guys don't guide beyond the quarter. But as we start coming out of this, hopefully, over the next several months and we see more of the vaccine getting out there, there should be -- it would sound like there should be some lift to your gross margins, just on the basis of the disruption that you've seen in Q4 and you're anticipating in Q1. Is that a fair way to think about it?

我知道你們不會在本季之後提供指導。但當我們開始走出困境時，希望在接下來的幾個月裡，我們會看到更多的疫苗上市，應該會——聽起來你的毛利率應該會有所提升，只是在這個基礎上您在第四季度看到的以及您預計在第一季出現的中斷。這是一個公平的思考方式嗎？

Well, there's no battle. We're carrying an anchor, if you will, in Q4 and Q1 related to COVID in terms of the impact on our cost structure through those inefficiencies that we talked about as we saw a significant ramping in cases and impact to our employees. So yes, we would expect that to relieve as we get -- the country is really, or the world gets the COVID situation -- particularly in North America, it gets the COVID situation under better control. Is that Q2? Is that beyond that point? I think that we can all watch the news and speculate on the vaccine rollout. But I think there's no doubt that, that's certainly holding us back a little bit.

還好，沒有戰鬥。如果你願意的話，我們在第四季度和第一季度與新冠病毒相關的問題是，我們討論了病例數大幅增加以及對員工的影響，從而對我們的成本結構產生了影響。所以，是的，我們希望隨著我們的疫情得到緩解——這個國家確實如此，或者世界上的新冠疫情——特別是在北美，它可以讓新冠疫情得到更好的控制。那是Q2嗎？是否超出了這一點？我認為我們都可以看新聞並猜測疫苗的推出。但我認為毫無疑問，這確實有點阻礙我們。

When do the comparisons get easier, Todd, in the commercial aerospace area? When did -- what was the big hit last year for you in that area?

托德，在商業航空航太領域，什麼時候比較變得更容易？去年您在該領域受到的最大打擊是什麼？

If you think -- from a revenue standpoint, really the Q3. So started in Q2. Started in Q2, really impacted us then in Q3 and in Q4. And so I think that's when -- again, we're going to go through the course of this year. It's until we get to that second half of the year, it's going to be a tough compare.

如果你認為──從收入的角度來看，確實是第三季。所以從第二季開始。從第二季開始，對第三季和第四季的我們產生了真正的影響。所以我認為我們將再次經歷今年的過程。直到今年下半年，這將是一個艱難的比較。

Got it. And last question, and we're seeing more of these reports coming out of the new administration of that Buy American initiatives. And I'm just wondering, do you see any benefit if, in fact, that's real, that it might have in terms of supply chains for you guys?

知道了。最後一個問題，我們看到更多來自新政府「購買美國貨」計畫的報告。我只是想知道，如果事實上這是真的，您是否認為它可能會為您的供應鏈帶來任何好處？

Yes. So it is early. And I think it's early to predict how that will all come together. Clearly, when we look -- we are well-established in North America. We have the opportunity. We have certainly the footprint we can continue to invest in as the administration looks at Buy America initiatives. The -- what we are certainly thinking through is a lot to do, Jim, with if you start to think about our business, you start to think about a few things. One is our supply chain. Whether it's laminate supply chain, whether it's equipment supply chain, there are a number of areas where, frankly, the U.S. infrastructure is insufficient. So we end up importing, and we bear quite a bit of cost associated with that.

是的。所以現在還早。我認為現在預測這一切將如何結合還為時過早。顯然，我們在北美已經站穩了腳步。我們有機會。當政府考慮「購買美國貨」計畫時，我們當然可以繼續投資。吉姆，我們當然正在考慮很多事情要做，如果你開始考慮我們的業務，你會開始考慮一些事情。一是我們的供應鏈。無論是層壓板供應鏈，還是設備供應鏈，坦白說，美國的基礎設施在許多領域都是不足的。所以我們最後選擇進口，並承擔了相當多的相關成本。

I'd say the second area is just simply volume manufacturing because we and others have really moved to a high-mix, low-volume-type production in the U.S. And so there needs to be a recognition with our customer base, perhaps encouraged by the U.S. government, that it makes sense for larger-scale commercial production to come back into the U.S. And then it needs -- then you're looking at a full-scale infrastructure requirement both in our supply chain as well as in the scale demanded by those customers. That's when it would get interesting. But yes, we're obviously watching that closely and at least the discussions around it could be encouraging longer term.

我想說第二個領域只是簡單的批量製造，因為我們和其他人已經真正轉向美國的高混合、小批量生產，因此需要得到我們的客戶群的認可，也許是受到以下因素的鼓勵美國政府認為，更大規模的商業生產回到美國是有意義的，然後它需要——然後你會看到我們的供應鏈以及所需規模的全面基礎設施要求由那些客戶。到時候事情就會變得有趣了。但是，是的，我們顯然正在密切關注這一點，至少從長遠來看，圍繞它的討論可能會令人鼓舞。

But it does sound like it's very early days. And even -- it sounds like there's still just lots of challenges even if they do want to execute on this.

但聽起來確實還為時過早。甚至 - 聽起來即使他們確實想執行此操作，仍然存在許多挑戰。

Yes. We're -- for us, it's always -- it always starts with our customers. To the extent that our customers are looking, have that supply chain need, we will do our utmost and we will encourage our supply chain to do their utmost to meet those needs. So that's where it all starts.

是的。對我們來說，始終是從我們的客戶開始。只要我們的客戶有供應鏈需求，我們就會竭盡全力，我們將鼓勵我們的供應鏈盡最大努力滿足這些需求。這就是一切的開始。

(Operator Instructions) And we'll take our next question from Paul Coster with JPMorgan.

（操作員說明）我們將接受摩根大通的保羅·科斯特提出的下一個問題。

A little late to the call, so some of these may have been touched upon. Just 2 questions really. First up, on the auto front, are you seeing a change in the customer base? We've seen just dozens of companies entering this -- the space, especially with EVs at the moment. And sort of strikes me that there must be some new logos in your mix by now, but perhaps you can enlighten us?

電話會議有點晚了，所以其中一些可能已經談到了。真的只有兩個問題。首先，在汽車方面，您是否看到客戶群發生變化？我們看到只有數十家公司進入這個領域，尤其是目前的電動車領域。讓我感到驚訝的是，現在你們的組合中一定有一些新的標誌，但也許你可以啟發我們？

Yes. Paul, interesting, and I thank you for the question. I'll broaden it slightly. I think what's interesting to me as we look at the automotive space and what happened in the fourth quarter is that we saw a strong year-on-year growth across the board. But if you start to look regionally, where we really -- where we saw the strongest growth continue to be Asia, and then with Europe coming in at -- right after Asia. North America, good year-on-year growth, but not to the same level. And what I attribute that to is what you commented on. We have seen a lot of innovation in the EV space, certainly in Asia, and that has helped our customers, the tier -- primarily Tier 1 suppliers. I think that's really helped their business and it's energized their business as consumer demand has come back. And so that's a really encouraging feature.

是的。保羅，很有趣，我感謝你提出這個問題。我會稍微擴大它。我認為，當我們審視汽車領域以及第四季度發生的情況時，我認為有趣的是我們看到了全面的同比強勁增長。但如果你開始從區域角度來看，我們看到成長最強勁的地區仍然是亞洲，然後是歐洲，緊跟在亞洲之後。北美地區年成長良好，但未達到相同水準。我將其歸因於您的評論。我們在電動車領域看到了很多創新，尤其是在亞洲，這對我們的客戶、一級供應商有所幫助。我認為這確實對他們的業務有幫助，隨著消費者需求的回升，也為他們的業務注入了活力。所以這是一個非常令人鼓舞的功能。

I think on the European side also, it's encouraging to see this kind of growth. Because if you remember, we were dealing a year ago with really that transition from out of diesel. And the big question in Europe was where would the demand go as the consumer transitioned out of diesel. And I think the answer is starting to emerge. I think more and more EV adoption, and yes, some good solid demand for internal combustion engine as well, but EV is certainly playing a role in that geography as well. So yes, for us, that -- yes, there are direct shipments to some of these new customers. I don't -- don't get me wrong. When they're doing development work, we're doing a lot of work for them. But the major volume continues to be with the Tier 1s. And they're turning around and they're seeing a very different landscape as they look out at their customer base.

我認為在歐洲方面，看到這種成長也是令人鼓舞的。因為如果你還記得的話，我們一年前就在處理從柴油的過渡。歐洲的一個大問題是，隨著消費者不再使用柴油，需求將走向何方。我認為答案已經開始顯現。我認為越來越多的電動車被採用，是的，對內燃機也有一些良好的堅實需求，但電動車肯定也在該地區發揮作用。所以，是的，對我們來說，是的，有直接發貨給其中一些新客戶。我不會——別誤會我的意思。當他們進行開發工作時，我們也在為他們做很多工作。但主要銷量仍來自一級。當他們回頭看自己的客戶群時，他們看到了截然不同的景象。

Okay. Got it. And then my follow-up, really also in the auto segment, really, perhaps more in the ICE area at the moment. That's the supply constraints not related to COVID, people related, but most to do with silicon, whether it's micro controllers or system-on-chip technology. Is that affecting you?

好的。知道了。然後我的後續行動，實際上也在汽車領域，實際上，也許目前更多的是在 ICE 領域。這是供應限制，與新冠疫情無關，與人有關，但主要與矽有關，無論是微控制器或系統單晶片技術。這對你有影響嗎？

Yes. So yes, I did comment a bit on that. Yes. The straight answer, Paul, is we're not -- we haven't seen it yet. We're still seeing very strong demand. And you can see that reflected in the backlog numbers, which are strong for us coming out of the fourth quarter. But we're watching it really closely. And that's going to be a function of hub, our hub inventories and the pull out of those hubs. So we're watching it closely. And I would expect that, yes, there will be an impact here eventually, but it just hasn't materialized yet.

是的。是的，我確實對此發表了一些評論。是的。保羅，直接的回答是我們還沒有——我們還沒有看到它。我們仍然看到非常強勁的需求。您可以在積壓訂單數量中看到這一點，這對我們第四季的業績表現強勁。但我們正在密切關注。這將取決於樞紐、我們的樞紐庫存以及這些樞紐的撤出量。所以我們正在密切關注。我預計，是的，最終會產生影響，但它還沒有實現。

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

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

Great execution in this challenging environment. Is -- if one wanted to be an optimist in this environment when we assume vaccines accelerate and we get into the fall, and everything is a more predictable and safer environment as well as we have Phase 3 production starting, the utilization up, in particular, in Asia Pacific. If I wanted to think about how much gross margins could improve from your implied guidance in Q1 to something we could be executing at in the back half of the year, can you bridge that gap for us?

在這個充滿挑戰的環境中出色的執行力。是——如果有人想在這種環境下保持樂觀，當我們假設疫苗加速研發並進入秋季時，一切都是一個更可預測、更安全的環境，而且我們已經開始第三階段生產，特別是利用率上升，在亞太地區。如果我想考慮從第一季的隱含指導到我們下半年可以執行的毛利率可以提高多少，您能為我們彌合這一差距嗎？

Sure. I'll take a crack at that. I mean what we've talked about is really looking at that revenue level and what happens, right? If auto maintains, that's great. And if we see the Phase 3 with the 5G rollout in China kick in, let's say, let's just pick a quarter, Q2, and it starts to ramp from there and we have a good strong second half, that's going to be very constructive. When we look at our incremental margins associated with that revenue that comes through, we're looking at somewhere in that -- I use 20% to 30%, but it's really 25% to 30%, depending on the complexity. The higher the complexity, the higher the incremental margins, but flow through to our operating income level as a result of that incremental revenue that we pick up. And it's really key for us. As Tom quoted in his comments earlier, our utilization levels in Asia are relatively low. They're in the low 60s. Low 60% range, which is a very low number for us historically. And we have plenty of capacity and capability. Yes, we have to add some labor and so forth, but in terms of the fixed infrastructure, but we have that in place. And so there's a rich flow through on incremental revenue.

當然。我會嘗試一下。我的意思是，我們討論的是真正關注收入水平以及會發生什麼，對吧？如果能自動保養那就太好了。如果我們看到中國推出 5G 的第三階段開始，讓我們選擇一個季度，即第二季度，它從那裡開始加速，我們有一個強勁的下半年，這將是非常有建設性的。當我們查看與收入相關的增量利潤時，我們會關注其中的某個地方 - 我使用 20% 到 30%，但實際上是 25% 到 30%，具體取決於複雜性。複雜性越高，增量利潤就越高，但由於我們獲得的增量收入而流向我們的營業收入水準。這對我們來說確實很關鍵。正如湯姆之前在評論中引用的那樣，我們在亞洲的利用率相對較低。他們都在 60 多歲。低 60% 的範圍，這對我們歷史來說是一個非常低的數字。我們有足夠的能力和能力。是的，我們必須增加一些勞動力等等，但就固定基礎設施而言，我們已經準備好了。因此，增量收入會產生豐富的流動。

So as we look at our end markets and say, okay, Tom mentioned the first half to be a bit of a tough compare because we had very excited medical/industrial, and to some degree, the telecom and networking and telecom section in the first half of 2019, we might see some tough compares there. But as those things -- as those end markets strengthen as we go through the year, that's going to have a nice flow through effect. If auto remains strong or continues to improve, keep in mind that as excited as we are about auto, we're still not yet back to our 2018 levels. And as Tom quoted in some of the information we provided, our lifetime wins in automotive this past year was a very robust number. And it was on top of a very good year last year in wind. So there's always a lag here, but we're building the pipeline. And as we get that incremental revenue through that, that's good business because, again, a lot of the fixed costs are already taken care of. So we look for nice flow through as we grow revenue in the various markets that we're competing in. And we're optimistic about that as we go. But the big opportunity particularly is in those commercial end markets, where we have -- where we are underutilized in our facilities, particularly in Asia.

因此，當我們審視我們的終端市場並說，好吧，湯姆提到上半年有點艱難，因為我們對醫療/工業以及在某種程度上，上半年的電信、網路和電信部分非常興奮2019 年下半年，我們可能會看到一些艱難的比較。但隨著這些事情的發生，隨著這些終端市場隨著我們這一年的加強，這將產生良好的流動效應。如果汽車產業保持強勁或繼續改善，請記住，儘管我們對汽車產業感到興奮，但我們仍然沒有回到 2018 年的水平。正如湯姆在我們提供的一些資訊中所引用的那樣，去年我們在汽車領域的終身勝利是一個非常強勁的數字。去年風電表現非常好。所以這裡總是存在著滯後，但我們正在建造管道。當我們透過這種方式獲得增量收入時，這就是一筆好生意，因為許多固定成本已經解決。因此，隨著我們在競爭的各個市場中增加收入，我們會尋求良好的流量。但巨大的機會尤其存在於那些商業終端市場，我們在這些市場的設施中未被充分利用，特別是在亞洲。

Great. Good. That's a great answer. My second question has to do with Anaren. Is there any way for you to quantify how big that business is today?

偉大的。好的。這是一個很好的答案。我的第二個問題與阿納倫有關。您有什麼方法可以量化該業務目前的規模嗎？

We -- well, the real answer is we don't think about it that way. So what I'd like to point to is if you think about the business that we acquired, which has been integrated with our aerospace and defense business, what I would look at is that -- the overall backlog. And when we acquired Anaren in 2018, that overall backlog is in the $400 million range. And obviously, we're now reaching record levels from an overall backlog standpoint. And so if you look at that uplift of $687 million, not all of it, but a good majority of it is in the RF space, which was -- is a direct contribution from the combination of the 2 companies. So that's the impact that really the combination is having. That's probably the best deal I can give to you on the Anaren impact.

我們——嗯，真正的答案是我們不這麼想。所以我想指出的是，如果你考慮我們收購的業務，它已經與我們的航空航太和國防業務整合，我會關注的是——總體積壓。當我們在 2018 年收購 Anaren 時，總體積壓訂單達到 4 億美元。顯然，從總體積壓的角度來看，我們現在達到了創紀錄的水平。因此，如果你看一下 6.87 億美元的成長，你會發現並不是全部，但其中很大一部分來自射頻領域，這是兩家公司合併的直接貢獻。這就是這種組合真正產生的影響。這可能是我能為您提供的有關阿納倫影響的最佳交易。

Is their EBITDA margin similar to what they were at when you acquired them? I mean they are materially higher than your combined business. Should we assume that they're still that high?

他們的 EBITDA 利潤率與您收購他們時的水平相似嗎？我的意思是，它們遠遠高於您的合併業務。我們應該假設它們仍然那麼高嗎？

So the only -- the only headwind we've had there on the commercial side of the RF&S segment, which we break out, but that side, we did lose the Huawei business, which obviously had an impact both on revenue and on profitability. But other than that, it's -- yes, it's very -- similar kinds of margins.

因此，我們在 RF&S 領域的商業方面遇到了唯一的阻力，我們對此進行了突破，但在這方面，我們確實失去了華為業務，這顯然對收入和盈利能力都產生了影響。但除此之外，是的，非常相似的利潤率。

Okay. And that gets me to the punchline. So if you look at that business in back of the envelope math, and you put what at a market multiple on that business may be if it was trading by itself and not hidden inside your company, it could be the lion's share of your market cap. Are you guys exploring that? Or is it too integrated for that to ever be something to contemplate?

好的。這讓我想到了重點。因此，如果你從數學角度看一下該業務，如果該業務是單獨交易而不是隱藏在你的公司內部，那麼你將該業務的市場倍數計算在內，那麼它可能是你市值的最大份額。你們正在探索這個嗎？還是說它太綜合了，不值得考慮？

Yes. We're very -- we're completely integrated at this point. So yes, I think that at this point as a company, we're -- it's really the -- when we're looking at our aerospace and defense business, that's an integrated business. And a piece of it is an integrated module, RF design-to-spec element that utilizes the full company capabilities. But we may in other programs be supplying a portion, maybe the printed circuit board portion and maybe the component portion into a certain program. But it's that ability to really flex to meet the customer needs that is so critical in the combination. So short answer, it really is an integrated, heavily integrated business at this point.

是的。我們現在已經完全整合在一起了。所以，是的，我認為，在這一點上，作為一家公司，我們——確實是——當我們審視我們的航空航天和國防業務時，這是一個綜合業務。其中一部分是整合模組、射頻設計規範元素，充分利用了公司的全部能力。但我們可能會在其他程式中提供一部分，也許是印刷電路板部分，也許是組件部分到某個程式。但真正能夠靈活地滿足客戶需求的能力在組合中至關重要。簡短的回答是，目前它確實是一個整合的、高度整合的業務。

And we'll take our final question from Mike Crawford with B. Riley.

我們將回答 Mike Crawford 和 B. Riley 提出的最後一個問題。

If you continue to generate free cash flow on all of your balance sheets you might get disinvited from all your [customers]. On your defense, $187 million defense backlog, I know the majority of your assets. Is there any way to quantify how much of that might be related to your new advanced i3 technologies now or perhaps in the future, given design wins that might be -- come into fruition?

如果您繼續在所有資產負債表上產生自由現金流，您可能會被所有[客戶]取消邀請。至於你的辯護，1.87 億美元的國防積壓，我知道你的大部分資產。有沒有什麼方法可以量化其中有多少可能與現在或未來的新先進 i3 技術相關，考慮到設計成果可能會實現？

That's a great example, Mike, of how the business works today. So the -- what we essentially acquired with i3 was a capability to produce in high mix, low volume, substrate-like printed circuit board, dense circuitry for miniaturization. There are different ways the product then moved from our printed circuit board facility into the market. One is as an internal supplier because we need some of those capabilities for our RF component business, and so we're an internal customer. Another way is in the aerospace and defense business, we have customers that need those boards. We also have customers that are very integrated in a microelectronics and assembly module. So now they're looking at how -- what can we do in terms of integration out of our facilities that would combine that board capability with the RF component capability into a full module? And those are longer-term programs that we're seeding today that will come into fruition 3 to 5 years from now.

麥克，這是當今企業運作方式的一個很好的例子。因此，我們透過 i3 獲得的本質是能夠生產高混合、小批量、類基板印刷電路板、小型化密集電路。產品可以透過不同的方式從我們的印刷電路板工廠轉移到市場。一種是作為內部供應商，因為我們的射頻組件業務需要其中一些能力，因此我們是內部客戶。另一種方式是在航空航太和國防業務中，我們有需要這些板的客戶。我們還有一些非常整合微電子和組裝模組的客戶。所以現在他們正在研究如何——我們可以在我們的設施整合方面做些什麼，將電路板功能與射頻組件功能結合到一個完整的模組中？這些是我們今天播種的長期計劃，將在 3 到 5 年後實現。

So if you look at their -- at the overall revenue of that piece today, the biggest portion is what we're using internally for our own component needs. If you look at that business 3 years from now, it's going to look very different. And it's going to be a combination of module business and board business and then an internal piece. So that's the kind of development that the organization is achieving now by bolting in the i3 element and what we brought in with Anaren and combine that with the overall PCB capability that TTM brought to the table.

因此，如果你看看他們今天的總收入，最大的部分是我們內部用於滿足我們自己的組件需求的收入。如果你三年後再看這家企業，它會看起來非常不同。它將是模組業務和主機板業務的結合，然後是內部部分。這就是該組織現在透過插入 i3 元件和我們引入 Anaren 並將其與 TTM 帶來的整體 PCB 能力相結合來實現的開發。

Okay. Then my final question is, is it more a function of volume or mix that gets to that about 16% to 18% EBITDA in your target model from where you are today?

好的。那麼我的最後一個問題是，從目前的情況來看，您的目標模型中的 EBITDA 達到約 16% 至 18% 是否更多是數量或組合的函數？

I think in -- obviously, we have the short-term issues with COVID that we have to work through. But beyond that, we need some top line growth. You can't have 60% utilization in your commercial facilities and -- which are volume-oriented facilities and get there. We've talked about the need to get our revenue levels up to an approximate run rate on an annual basis of about $2.3 billion. We're roughly at $2 billion now. So we need to see some growth there to be able to adequately utilize our facilities, given our current footprint. And that's what we're driving for us. Now we see that opportunity. If you look at our revenue growth targets of mid-single digits organically, you can get there in the time frame that we're looking at. Obviously, other things can happen to make that quicker or slower, depending on macro levels or acquisitions or other things. But that's what we're looking at. And we certainly believe it's attainable with the footprint and the capabilities that we have today.

我認為，顯然，我們必須解決新冠疫情帶來的短期問題。但除此之外，我們還需要一些收入成長。你的商業設施不可能有 60% 的利用率，而且這些設施都是以容量為導向的設施，而且無法達到這一目標。我們已經討論過需要將我們的收入水準提高到每年 23 億美元左右的運行率。我們現在大約是 20 億美元。因此，考慮到我們目前的足跡，我們需要看到那裡的一些成長，以便能夠充分利用我們的設施。這就是我們所推動的。現在我們看到了這個機會。如果您有機地看待我們中個位數的收入成長目標，您可以在我們考慮的時間範圍內實現這一目標。顯然，其他事情可能會導致這個過程變得更快或更慢，這取決於宏觀層面或收購或其他因素。但這就是我們正在關注的。我們當然相信，憑藉我們今天所擁有的足跡和能力，這是可以實現的。

That concludes our question-and-answer period for this time. I'll turn the call back over to Mr. Edman for any final or additional comments.

我們這次的問答環節到此結束。我會將電話轉回艾德曼先生以徵求任何最終或補充意見。

Thank you, and thank you, everyone, for joining us. Just wanted to reiterate a few points. We delivered revenues above the midpoint, earnings above the guided range, and that's despite COVID-19 challenges. Second, our end market diversification has allowed continuing operations to be stable and -- despite some weakness in a couple of our end markets. Third, we generated very solid cash flow. We repaid and settled our convertible bond. And as a result, we brought our leverage down to 1.4 and announced the stock buyback program. So quite a busy quarter for us.

謝謝你們，也謝謝大家加入我們。只是想重申幾點。儘管受到新冠肺炎 (COVID-19) 的挑戰，我們的收入仍高於中點，盈利高於指導範圍。其次，我們的終端市場多元化使得持續營運保持穩定——儘管我們的一些終端市場存在一些疲軟。第三，我們產生了非常穩定的現金流。我們償還並結算了可轉換債券。結果，我們將槓桿率降至 1.4，並宣布了股票回購計畫。對我們來說這是一個非常忙碌的季度。

In closing, I would like to thank you and also thank our employees and our customers for your and their continued support. Thank you very much.

最後，我要感謝您，也感謝我們的員工和客戶的持續支持。非常感謝。

That does conclude our conference call for today, everyone. Thank you all for your participation. You may now disconnect.

大家今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。