TTM Technologies Inc (TTMI) 2020 Q1 法說會逐字稿

Good day, everyone.

今天是個好日子。

Ladies and gentlemen, thank you for standing by.

女士們先生們，謝謝你們的支持。

Welcome to the TTM Technologies First Quarter 2020 Financial Results Conference Call.

歡迎參加 TTM Technologies 2020 年第一季財務業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded today, April 29, 2020.

（操作員說明）謹此提醒，本次會議將於今天（2020 年 4 月 29 日）進行錄音。

Sameer Desai, TTM's Senior Director of Corporate Development and Investor Relations, will now review TTM's disclosure statement.

TTM 企業發展和投資者關係高級總監 Sameer Desai 現在將審查 TTM 的揭露聲明。

Thanks, Sarah.

謝謝，莎拉。

Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook.

在開始之前，我想提醒大家，今天的電話會議包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括與 TTM 未來業務前景相關的陳述。

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.

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 the date of this presentation.

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 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.

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 disclosures regarding the risks that may affect TTM, which may be found in the reports on Forms 10-K, 10-Q, 8-K, the Registration Statement on Form 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，這些資訊可在表格 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.

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。

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.

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。

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

我現在想將電話轉給 TTM 執行長 Tom Edman。

Please go ahead, Tom.

請繼續，湯姆。

Thank you, Sameer.

謝謝你，薩米爾。

Good afternoon and thank you for joining us for our first quarter 2020 conference call.

下午好，感謝您參加我們的 2020 年第一季電話會議。

These are unprecedented times, and I hope that all of you and your loved ones are safe and healthy.

這是前所未有的時期，我希望你們所有人和你們所愛的人都安全健康。

The 3 of us, that's Sameer, Todd and myself, are in our respective homes for this earnings call.

我們三個人，也就是 Sameer、Todd 和我，在各自的家裡參加了這場財報電話會議。

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

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

Todd Schull, our CFO, will follow with an overview of our Q1 2020 financial performance and our Q2 2020 guidance.

我們的財務長 Todd Schull 隨後將概述我們 2020 年第一季的財務表現和 2020 年第二季的指導。

We will then open the call to your questions.

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 2020, TTM generated revenues above the midpoint and non-GAAP EPS above the guided range despite the extended shutdown of our China operations following Chinese New Year, as our manufacturing plants did a great job of ramping up production following the government-mandated shutdown.

我很高興地報告，儘管我們的中國業務在農曆新年後長時間關閉，但在2020 年第一季度，迅達的收入高於中點，非公認會計原則每股收益高於指導範圍，因為我們的製造工廠在政府強制關閉後提高產量。

In addition, North American governments have deemed TTM products as essential and all of our manufacturing plants are presently operating as we supply defense programs, communications infrastructure and medical products.

此外，北美政府認為 TTM 產品至關重要，我們所有的製造工廠目前都在運營，提供國防項目、通訊基礎設施和醫療產品。

The emergence of the COVID-19 pandemic has created operational challenges, macroeconomic uncertainty and employee concerns.

COVID-19 大流行的出現帶來了營運挑戰、宏觀經濟不確定性和員工擔憂。

I am extremely proud of how TTM employees have risen to the challenge and contributed during the pandemic.

我對迅達員工在疫情期間迎接挑戰並做出的貢獻感到非常自豪。

At the end of 2019, TTM had more than 25,000 employees, with the majority of them split between North America and Asia Pacific.

截至 2019 年底，TTM 擁有超過 25,000 名員工，其中大部分分佈在北美和亞太地區。

Since the earliest signs of the outbreak in China, we immediately established an Asia-based situational leadership team to organize proactive measures to safeguard our employees.

自從中國出現疫情最早跡像以來，我們立即成立了亞洲情況領導小組，組織積極措施保護我們的員工。

After the virus spread to North America, we implemented best practices from our Asia Pacific facilities in our North American facilities.

病毒傳播到北美後，我們在北美工廠實施了亞太工廠的最佳實務。

Such practices include, where possible, TTM employees work from home.

此類做法包括在可能的情況下讓迅達員工在家工作。

We have restricted all local and international business travel globally.

我們限制了全球所有本地和國際商務旅行。

And we have implemented a regimen in our facilities to protect our employees from the spread of the disease through procedures such as regular facility sterilization, mandatory masks in our facilities, temperature checks for all incoming employees and visitors, mandatory quarantine for employees returning from the impacted areas and other measures.

我們在我們的設施中實施了一項措施，透過定期設施消毒、在設施中強制佩戴口罩、對所有入境員工和訪客進行體溫檢查、對從受影響地區返回的員工進行強制隔離等程序，保護我們的員工免受疾病傳播領域和其他措施。

Our Asia team even began producing masks in order to contribute to the safety of our facilities and employees worldwide.

我們的亞洲團隊甚至開始生產口罩，以確保我們全球設施和員工的安全。

As of yesterday, we have had 10 employees in North America who have tested positive for COVID-19 and are receiving appropriate medical attention.

截至昨天，我們在北美有 10 名員工的 COVID-19 檢測結果呈陽性，並正在接受適當的醫療照護。

In each of these cases, our North America situational leadership team responded immediately, using contact tracing to quarantine individuals who were in close contact with the infected team member, also by sterilizing the area in which they worked and by alerting our workforce at the 6 sites involved on all shifts to review measures that had been taken.

對於每一個案例，我們的北美情況領導團隊都立即做出反應，使用接觸者追蹤來隔離與受感染團隊成員密切接觸的個人，並對他們工作的區域進行消毒，並向6 個地點的員工發出警報參與所有轉變以審查已採取的措施。

As a result of stringent preventative measures in place, these events have had minimal impact on our manufacturing operations to date.

由於採取了嚴格的預防措施，迄今為止，這些事件對我們的製造業務的影響微乎其微。

At this time, we have had 0 cases in our Asia Pacific facilities.

目前，我們亞太地區的設施中已有 0 例。

In terms of communications, we have established a task force at the corporate level to coordinate communications with our customers and employees.

在溝通方面，我們在公司層級成立了一個工作小組，負責協調與客戶和員工的溝通。

For our employees, we provide biweekly e-mail updates, I host a bimonthly town hall and we have daily contacts from our human resources personnel to each employee who is absent from a plant on any given day so that we can provide the right level of assurance and transparency to our employees.

對於我們的員工，我們每兩週提供一次電子郵件更新，我每兩個月舉辦一次市政廳會議，我們的人力資源人員每天都會與在任何一天不在工廠的每位員工保持聯繫，以便我們能夠提供適當程度的資訊為我們的員工提供保證和透明度。

I would like to recognize the extraordinary efforts of our situational leadership teams, operations management and human resources organization in these efforts.

我要表揚我們的情境領導團隊、營運管理和人力資源組織在這些努力中所做的非凡努力。

In the second quarter, we have also implemented an incentive bonus as a means of thanking our employees who continue to come to work at our plants.

在第二季度，我們還實施了激勵獎金，以感謝繼續到我們工廠工作的員工。

In addition, we are granting 1 week of paid time off for each employee who needs to be out of the office due to exposure to COVID, a family member who has been exposed to COVID or an employee who has been exhibiting flu-like symptoms.

此外，我們也為每位因接觸新冠病毒而需要離開辦公室的員工、接觸過新冠病毒的家庭成員或出現流感樣症狀的員工提供 1 週的帶薪休假。

We also have established a PTO bank where employees can grant their unused PTO to those who are in need of additional PTO for COVID reasons.

我們也建立了一家 PTO 銀行，員工可以將未使用的 PTO 授予因新冠疫情原因需要額外 PTO 的人員。

We feel that these are the right measures for TTM to take to recognize the sacrifice of our employees and to put the safety of our employees first.

我們認為，這些是 TTM 採取的正確措施，以表彰我們員工的犧牲，並將員工的安全放在第一位。

Moving on to the Mobility divestiture.

繼續進行行動業務剝離。

Ten days ago, we announced that we closed the previously reported divestiture of our Mobility business unit to AKMMeadville, a Chinese consortium, for an enterprise value of $645 million.

十天前，我們宣布完成先前報告的將行動業務部門剝離給中國財團 AKMMeadville 的交易，企業價值為 6.45 億美元。

This was a strategic transaction, allowing us to focus on longer cycle markets and reducing our exposure to short product cycle and seasonal consumer markets, which historically have been prone to volatility.

這是一項策略性交易，使我們能夠專注於較長週期的市場，並減少對短產品週期和季節性消費市場的曝險，這些市場歷來容易波動。

The consideration was $550 million for 4 China manufacturing facilities and did not include certain accounts receivable of approximately $95 million.

4 個中國製造工廠的對價為 5.5 億美元，不包括約 9,500 萬美元的某些應收帳款。

Accounts receivable were lower than previously disclosed due to an earlier-than-expected closing of the transaction.

由於交易提前結束，應收帳款低於先前揭露的水平。

We felt that the surety of closing during a period of macroeconomic uncertainty outweighed the lower accounts receivable.

我們認為，在宏觀經濟不確定時期完成交易的確定性超過了應收帳款的下降。

Net proceeds are expected to be $580 million, which we plan to use to reduce debt and invest in the company.

淨收益預計為 5.8 億美元，我們計劃將其用於減少債務和投資於公司。

The receipt of proceeds will take another 3 to 4 months as we follow protocols related to transferring funds out of China.

由於我們遵循與將資金轉出中國相關的協議，因此還需要 3 到 4 個月才能收到收益。

In addition, we have bank guarantees that we can exercise to receive U.S. dollars if we do not receive funds by August 7. This transaction aligns with our strategic focus on diversification, differentiation and discipline, and we expect that in the long term it will pay off for TTM, our investors and our customers.

此外，如果我們在8 月7 日之前沒有收到資金，我們可以行使銀行擔保來接收美元。帶來回報對於 TTM、我們的投資者和我們的客戶來說，一切順利。

Finally, we just issued a press release that discusses the restructuring of our E-MS business unit.

最後，我們剛剛發布了一份新聞稿，討論了我們的 E-MS 業務部門的重組。

The E-MS business unit consists of 3 Chinese manufacturing facilities with 2 being in Shanghai, Shanghai backplane and Shanghai E-M Solutions, and one in Shenzhen.

E-MS 業務部門由 3 個中國製造工廠組成，其中 2 個位於上海、上海背板和上海 E-M Solutions，以及 1 個位於深圳。

TTM will be ceasing operations at the Shanghai E-M Solutions and Shenzhen facilities while leaving the Shanghai backplane facility operating and absorbing it into our PCB operations.

TTM 將停止上海 E-M Solutions 和深圳工廠的運營，同時保留上海背板工廠的運作並將其納入我們的 PCB 營運中。

The complete wind down will take place through 2020 as we support our customers during their transition to other suppliers.

整個停產將持續到 2020 年，因為我們會在客戶轉向其他供應商的過程中為他們提供支援。

For 2019, the Shenzhen and Shanghai E-M Solutions plants had $161.2 million in revenue and $9.5 million in non-GAAP operating income, primarily in the automotive; networking and communications; and medical, industrial and instrumentation end markets.

2019年，深圳和上海E-M Solutions工廠的收入為1.612億美元，非公認會計原則營業收入為950萬美元，主要來自汽車領域；網路和通訊；以及醫療、工業和儀器終端市場。

The strategic rationale for this move is based on TTM's increasing focus on differentiated higher margin products such as PCBs and RF components and subassemblies.

此舉的策略依據是 TTM 越來越注重差異化的高利潤產品，例如 PCB 和射頻元件及組件。

Commercial assembly services have always been a lower margin business.

商業組裝服務一直是利潤率較低的業務。

The following particular factors led to this decision.

以下特殊因素導致了這個決定。

Number 1, the recent trade tensions between the U.S. and China have had a negative impact on the E-MS business as much of our product was imported directly by our customers into the U.S. Number 2, the E-MS business has further weakened following the disruptions of the supply chain and end market demand by the COVID-19 virus.

第一，最近美國和中國之間的貿易緊張局勢對 E-MS 業務產生了負面影響，因為我們的大部分產品是由我們的客戶直接進口到美國。病毒導致供應鍊和終端市場需求中斷。

Number 3, the town of Nan Xiang in the Jiading Red District of Shanghai, has advised us of their intent to expropriate the land Shanghai E-MS occupies.

第三，上海嘉定紅區南翔鎮向我們通報了他們打算徵用上海E-MS所佔用的土地的意向。

This area is earmarked for other nonindustrial uses.

此區域指定用於其他非工業用途。

Number 4, the business did not have sufficient scale to adequately compete with larger competitors with global manufacturing footprints.

第四，該業務沒有足夠的規模來與擁有全球製造足跡的較大競爭對手充分競爭。

Number 5, the business had lower profit margins and returns than TTM's core PCB business.

第五，該業務的利潤率和回報率低於 TTM 的核心 PCB 業務。

And finally, the transaction also does reduce our China footprint, which is another positive given continued trade friction between the U.S. and China.

最後，該交易也確實減少了我們在中國的足跡，考慮到中美之間持續的貿易摩擦，這是另一個積極因素。

We are determined to make the transition as painless as possible for our customers but this was a decision that needed to be made for strategic as well as financial reasons.

我們決心讓我們的客戶盡可能輕鬆地進行過渡，但這是出於策略和財務原因而需要做出的決定。

Now I'd like to review our end markets.

現在我想回顧一下我們的終端市場。

All historical reported end market disclosures continue to include the Mobility business unit.

所有歷史報告的終端市場揭露繼續包括行動業務部門。

Our forecast for Q2 includes results of the Mobility business unit up to the closing date of the sale.

我們對第二季的預測包括截至銷售截止日期的行動業務部門的業績。

The end market disclosures still contain all of the E-MS segment revenues.

最終市場揭露的資訊仍包含所有 E-MS 部門的收入。

For pro forma comparisons, excluding these segments, please refer to the appendix of our investor presentation posted to our website.

對於預計比較（不包括這些部分），請參閱我們網站上發布的投資者簡報的附錄。

For TTM, the aerospace and defense end market represented 30% of total first quarter sales compared to 27% of Q1 2019 sales and 26% of sales in Q4 2019.

對迅達來說，航空航太和國防終端市場佔第一季總銷售額的 30%，而 2019 年第一季銷售額為 27%，2019 年第四季銷售額為 26%。

We expect sales in Q2 from this end market to represent about 34% of our total sales.

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。

We continue to see solid growth in our A&D business, with Q1 revenues up 12% year-on-year and A&D program backlog growing to $612 million compared to $487 million in the year ago quarter.

我們的 A&D 業務持續穩健成長，第一季營收年增 12%，A&D 專案積壓從去年同期的 4.87 億美元增至 6.12 億美元。

Ongoing strength is a result of our strong program alignment and a key new booking for the LTAMDS program, which stands for Lower Tier Air and Missile Defense System, and is an upgrade of Raytheon's Patriot Missile program.

持續的實力是我們強大的計劃協調和LTAMDS計劃的重要新預訂的結果，LTAMDS計劃代表低層防空和導彈防禦系統，是雷神公司愛國者導彈計劃的升級。

The medical/industrial/instrumentation end market contributed 16% of our total sales in the first quarter compared to 15% in the year ago quarter and 13% in the fourth quarter of 2019.

醫療/工業/儀器終端市場貢獻了我們第一季總銷售額的 16%，而去年同期為 15%，2019 年第四季為 13%。

We saw strength in our instrumentation customers that was offset by weakness in our industrial customers in our E-MS segment.

我們看到了儀器儀表客戶的優勢，但被 E-MS 領域工業客戶的疲軟所抵消。

For the second quarter, we expect this market to be 18% of revenues due primarily to increased demand for medical equipment such as patient monitoring devices and ventilators.

對於第二季度，我們預計該市場將佔收入的 18%，這主要是由於對患者監護設備和呼吸器等醫療設備的需求增加。

Networking/communications accounted for 14% of revenue during the first quarter of 2020.

2020 年第一季度，網路/通訊業務佔收入的 14%。

This compares to 18% in the first quarter of 2019 and 15% of revenue in the fourth quarter of 2019.

相較之下，2019 年第一季的營收為 18%，2019 年第四季的營收為 15%。

Year-on-year growth for PCBs for Chinese 5G base stations was more than offset by declines in networking customers, networking and telecom customers in our E-MS segment, and U.S.-made wireless components sold to Huawei which were impacted by the trade conflict.

中國5G基地台PCB的年增長被我們的E-MS部門的網路客戶、網路和電信客戶的下降以及銷售給華為的美國製造的無線組件受到貿易衝突的影響所抵消。

Sales were also impacted by production limitations due to the extended shutdown of production at our China facilities as a result of COVID-19.

由於新冠肺炎 (COVID-19) 疫情導致我們中國工廠的生產長期停工，銷售也受到生產限制的影響。

In Q2, we expect this segment to be 18% of revenue as demand for 5G infrastructure and networking equipment increases.

隨著 5G 基礎設施和網路設備需求的增加，我們預計第二季該細分市場將佔營收的 18%。

Sales in the computing/storage/peripherals end market represented 14% of total sales in the first quarter compared to 13% in Q1 of 2019 and 14% in the fourth quarter of 2019.

計算/儲存/週邊終端市場的銷售額佔第一季總銷售額的14%，而2019年第一季為13%，2019年第四季為14%。

We saw strength in our semiconductor and datacenter customers.

我們看到了半導體和資料中心客戶的實力。

The laptop and tablet revenues were approximately 26% of computing revenues in Q1 and are included in the Mobility business unit divestiture.

筆記型電腦和平板電腦收入約佔第一季計算收入的 26%，並包含在行動業務部門剝離中。

We expect revenues in this end market to represent approximately 13% of second quarter sales as only 3 weeks of laptop and tablet sales are included.

我們預計該終端市場的收入將佔第二季銷售額的 13% 左右，因為僅包括 3 週的筆記型電腦和平板電腦銷售額。

Automotive sales represented 12% of total sales during the first quarter of 2020, compared to 17% in the year ago quarter and 14% during the fourth quarter of [2020].

2020 年第一季，汽車銷售佔總銷售量的 12%，去年同期為 17%，2020 年第四季為 14%。

Automotive sales declined year-over-year due to reduced production days resulting from the government-mandated shutdown in China as well as demand weakness, particularly in Europe and China.

由於中國政府強制停產導致生產天數減少以及需求疲軟（尤其是歐洲和中國），汽車銷售量較去年同期下降。

Approximately 36% of the year-on-year decline was due to weakness in the E-MS segment.

年比下降約 36% 是由於 E-MS 領域的疲軟所致。

We expect automotive to contribute 13% of total sales in Q2, with ongoing global weakness in demand as expected.

我們預計汽車產業將佔第二季總銷售額的 13%，正如預期的那樣，全球需求持續疲軟。

The cellular phone end market accounted for 11% of revenue in the first quarter compared to 7% in Q1 of 2019 and 16% in Q4 of 2019.

手機終端市場佔第一季營收的 11%，而 2019 年第一季為 7%，2019 年第四季為 16%。

We expect cellular to represent 2% of revenues in Q2 as only 3 weeks of Mobility revenues are included.

我們預計行動網路將佔第二季收入的 2%，因為僅包括 3 週的行動收入。

Next I'll cover some details from the first quarter.

接下來我將介紹第一季的一些細節。

During the quarter, our advanced technology business, which includes HDI, rigid flex, substrate and RF subsystems and components, accounted for approximately 39% of our company's revenue.

本季度，我們的先進技術業務（包括 HDI、剛柔結合、基板和射頻子系統及組件）約占公司收入的 39%。

This compares to approximately 33% in the year ago quarter and 42% in Q4.

相比之下，去年同期約為 33%，第四季約為 42%。

The sequential and year-over-year changes were due to combined effects in our cellular and computing end markets.

連續和同比變化是由於我們的蜂窩和計算終端市場的綜合影響。

We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology capabilities in new markets.

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 47% in Q1 due largely to the impact of the extended Chinese New Year shutdown and slow recovery period during February, compared to 55% in the year ago quarter and 72% in Q4.

第一季亞太地區的產能利用率為 47%，主要是由於農曆新年停工時間延長和 2 月恢復緩慢的影響，而去年同期為 55%，第四季為 72%。

Our overall capacity utilization in North America was 67% in Q1 compared to 62% 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 67%，去年同期為 62%，第四季為 58%。

Our top 5 customers contributed 34% of total sales in the first quarter of 2020 compared to 29% in the year ago quarter and 37% in the fourth quarter of 2019.

我們的前 5 名客戶貢獻了 2020 年第一季總銷售額的 34%，而去年同期為 29%，2019 年第四季為 37%。

Our largest customer accounted for 13% of sales in the first quarter versus 9% in the year ago quarter and 18% in Q4.

我們最大的客戶佔第一季銷售額的 13%，而去年同期為 9%，第四季為 18%。

At the end of Q1, our 90-day backlog, which is subject to cancellations, was $587.4 million compared to $438.3 million at the end of the first quarter last year, and $511.2 million at the end of Q4.

截至第一季末，我們的 90 天積壓訂單（可能會被取消）為 5.874 億美元，而去年第一季末為 4.383 億美元，第四季末為 5.112 億美元。

Our PCB book-to-bill ratio was 1.15 for the 3 months ending March 30.

截至 3 月 30 日的 3 個月，我們的 PCB 訂單出貨比為 1.15。

I'd like to conclude by again thanking our employees for continuing to contribute to TTM and our critical mission of inspiring innovation for our customers.

最後，我要再次感謝我們的員工繼續為迅達做出貢獻，並感謝我們為客戶激發創新的重要使命。

Their efforts are particularly appreciated during these times by our customers in the medical industry.

在此期間，我們的醫療行業客戶特別讚賞他們的努力。

While we are facing short-term uncertainty from COVID-19, we are taking the right strategic moves to strengthen TTM for the long term.

雖然我們面臨著 COVID-19 帶來的短期不確定性，但我們正在採取正確的策略措施來加強 TTM 的長期發展。

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

現在托德將回顧我們第一季的財務表現。

Todd?

托德？

Thanks, Tom, and good afternoon, everyone.

謝謝湯姆，大家下午好。

As Tom mentioned earlier, on April 19, TTM announced the closing of the sale of its Mobility business unit.

正如 Tom 之前提到的，4 月 19 日，TTM 宣布完成其行動業務部門的出售。

As such, the disclosure of TTM's GAAP results reflects the Mobility business unit as a discontinued operation.

因此，TTM GAAP 業績的揭露反映了行動業務部門已停止營運。

To facilitate the comparison of TTM's results to prior periods and to previously issued guidance, I will also discuss non-GAAP financial information which includes the results of the Mobility business unit.

為了便於將迅達的業績與之前期間和之前發布的指引進行比較，我還將討論非 GAAP 財務信息，其中包括移動業務部門的業績。

The E-MS business unit, or the Electro-Mechanical Solutions business unit, is also included in the results that we have reported.

E-MS 業務部門或機電解決方案業務部門也包含在我們報告的結果中。

For the first quarter, GAAP net sales from continuing operations were $497.6 million compared to $536.4 million in the first quarter of 2019 and $535.7 million in the fourth quarter of 2019.

第一季度，持續營運業務產生的 GAAP 淨銷售額為 4.976 億美元，而 2019 年第一季為 5.364 億美元，2019 年第四季為 5.357 億美元。

The year-over-year decrease in revenue was due to declines in our networking and communications and automotive end markets, partially offset by growth in our aerospace and defense and medical, industrial and instrumentation end markets.

收入同比下降是由於我們的網路和通訊以及汽車終端市場的下降，但部分被我們的航空航天和國防以及醫療、工業和儀器儀表終端市場的成長所抵消。

GAAP operating income from continuing operations for the first quarter of 2020 was $16.2 million compared to $30.1 million in the first quarter of 2019 and $29.4 million in the fourth quarter of 2019.

2020 年第一季持續經營業務的 GAAP 營業收入為 1,620 萬美元，而 2019 年第一季為 3,010 萬美元，2019 年第四季為 2,940 萬美元。

On a GAAP basis, net loss from continuing operations in the first quarter of 2020 was $3.2 million or $0.03 per diluted share.

以 GAAP 計算，2020 年第一季持續經營業務淨虧損為 320 萬美元，即稀釋後每股虧損 0.03 美元。

This compares to net income from continuing operations of $6.2 million or $0.06 per diluted share in the first quarter of last year and $7.3 million or $0.07 per diluted share in the fourth quarter of 2019.

相較之下，去年第一季持續經營淨利為 620 萬美元，即稀釋後每股收益 0.06 美元，2019 年第四季持續經營淨利為 730 萬美元，即稀釋後每股收益 0.07 美元。

The remainder of my comments will focus on our non-GAAP financial performance.

我其餘的評論將集中於我們的非公認會計準則財務表現。

Our non-GAAP performance includes our divested Mobility business unit but excludes M&A-related costs, restructuring costs, certain noncash expense items and other unusual or infrequent items.

我們的非公認會計原則績效包括我們剝離的行動業務部門，但不包括併購相關成本、重組成本、某些非現金費用項目和其他不尋常或不常見的項目。

We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate comparison with expectations and prior periods.

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。

For the first quarter, net sales were $610.8 million compared to $620.2 million in the first quarter of 2019 and compared to fourth quarter 2019 net sales of $719.3 million.

第一季的淨銷售額為 6.108 億美元，而 2019 年第一季的淨銷售額為 6.202 億美元，2019 年第四季的淨銷售額為 7.193 億美元。

The year-over-year decrease in revenue was due to declines in our networking and communications and automotive end markets, partially offset by growth in our aerospace and defense, cellular and computing end markets.

收入年減是由於我們的網路和通訊以及汽車終端市場的下降，但部分被我們的航空航太和國防、蜂窩和計算終端市場的成長所抵消。

Gross margin in the first quarter was 14.5% compared to 14.6% in the first quarter of 2019 and 17.6% in the fourth quarter of 2019.

第一季的毛利率為14.5%，而2019年第一季的毛利率為14.6%，2019年第四季的毛利率為17.6%。

The year-over-year decline in gross margins was due primarily to the changes in revenue noted earlier, which was largely offset by improved performance in our Mobility plants.

毛利率年減主要是由於前面提到的收入變化，這在很大程度上被我們的行動工廠績效的改善所抵消。

Selling and marketing expense was $16.9 million in the first quarter or 2.8% of net sales versus $18.4 million or 3% of net sales a year ago, and $18.3 million or 2.5% of net sales in the fourth quarter.

第一季銷售及行銷費用為1,690 萬美元，佔淨銷售額的2.8%，而去年同期為1,840 萬美元，佔淨銷售額的3%；第四季銷售及行銷費用為1,830 萬美元，佔淨銷售額的2.5%。

First quarter G&A expense was $30.9 million or 5% of net sales compared to $23.7 million or 4.4% of net sales in the same quarter a year ago, and $32 million or 4.4% of net sales in the previous quarter.

第一季管理及行政費用為3,090 萬美元，佔淨銷售額的5%，去年同期為2,370 萬美元，佔淨銷售額的4.4%，上一季為3,200 萬美元，佔淨銷售額的4.4 %。

Starting in 2020, we are breaking out R&D expenses so that you may better understand the investments we are making to differentiate ourselves.

從 2020 年開始，我們將細分研發費用，讓您更了解我們為實現差異化所做的投資。

In the first quarter of 2020, R&D was $4.9 million or 0.8% of revenues compared to $4.8 million or 0.8% in the year ago quarter and $4.4 million or 0.6% of revenues in the previous quarter.

2020 年第一季度，研發費用為 490 萬美元，佔營收的 0.8%，去年同期為 480 萬美元，佔營收的 0.8%，上一季為 440 萬美元，佔營收的 0.6%。

Our operating margin in Q1 was 5.8%.

我們第一季的營業利益率為 5.8%。

This compares to 6.5% in the same quarter last year and 10.1% in the fourth quarter of 2019.

相較之下，去年同期為 6.5%，2019 年第四季為 10.1%。

Interest expense was $16.5 million in the first quarter, a decrease of $1.4 million from the same quarter last year due to lower interest rates and debt repayments.

由於利率下降和債務償還，第一季利息支出為 1,650 萬美元，比去年同期減少 140 萬美元。

During the quarter, we recorded $2.2 million of foreign exchange gains.

本季度，我們錄得 220 萬美元的外匯收益。

Government incentives increased the gain to $3.9 million or approximately $0.03 of EPS.

政府激勵措施使收益增加至 390 萬美元，即每股收益約 0.03 美元。

This compares to a loss of $3.6 million or approximately $0.03 of EPS in Q1 last year and a loss of $3 million or approximately $0.03 of EPS in Q4 of 2019.

相較之下，去年第一季虧損 360 萬美元，即每股收益約 0.03 美元，2019 年第四季虧損 300 萬美元，即每股收益約 0.03 美元。

Our effective tax rate was 15% in the first quarter.

第一季我們的有效稅率為 15%。

First quarter net income was $19.6 million or $0.18 per diluted share.

第一季淨利為 1,960 萬美元，或攤薄後每股收益 0.18 美元。

This compares to first quarter 2019 net income of $16.4 million or $0.16 per diluted share and fourth quarter 2019 net income of $43.9 million or $0.41 per diluted share.

相比之下，2019 年第一季淨利潤為 1,640 萬美元，即稀釋後每股收益 0.16 美元，2019 年第四季淨利潤為 4,390 萬美元，即稀釋後每股收益 0.41 美元。

Adjusted EBITDA for the first quarter was $82.1 million or 13.4% of net sales compared with first quarter 2019 adjusted EBITDA of $78.5 million or 12.7% of net sales.

第一季調整後 EBITDA 為 8,210 萬美元，佔淨銷售額的 13.4%，而 2019 年第一季調整後 EBITDA 為 7,850 萬美元，佔淨銷售額的 12.7%。

In the fourth quarter, adjusted EBITDA was $111.3 million or 15.5% of net sales.

第四季度，調整後 EBITDA 為 1.113 億美元，佔淨銷售額的 15.5%。

Our balance sheet and liquidity positions remain strong.

我們的資產負債表和流動性狀況依然強勁。

Cash flow from operations was $27.9 million in the first quarter versus $36.9 million in the same quarter last year.

第一季營運現金流為 2,790 萬美元，去年同期為 3,690 萬美元。

Our net debt leverage ratio improved to 2.8x.

我們的淨債務槓桿率改善至 2.8 倍。

Cash and cash equivalents at the end of the first quarter of 2020 were $430.4 million, including approximately a $35 million deposit related to the sale of our Mobility business.

截至 2020 年第一季末，現金和現金等價物為 4.304 億美元，其中包括與出售行動業務相關的約 3,500 萬美元押金。

Excluding this deposit, we have ample liquidity, with a cash balance of just under $400 million and undrawn ABL capacity of $199 million.

除去這筆存款，我們擁有充足的流動性，現金餘額略低於 4 億美元，未提取的 ABL 容量為 1.99 億美元。

And as a reminder, we'll be receiving approximately $485 million in net proceeds from the sale of our 4 Mobility plants by August 7, and an additional $95 million from Mobility-related accounts receivable collections over the next 3 to 4 months.

提醒一下，到8 月7 日，我們將透過出售4 個移動工廠獲得約4.85 億美元的淨收益，並在未來3 到4 個月內從與移動相關的應收帳款催收中獲得額外的9500萬美元。

Depreciation for the first quarter was $42.6 million.

第一季折舊額為 4,260 萬美元。

Net capital spending for the quarter was $32.5 million.

該季度的淨資本支出為 3250 萬美元。

Now I'd like to turn to our guidance for the second quarter.

現在我想談談我們對第二季的指導。

Looking ahead, we believe that COVID-19 may cause end market demand weakness, supply chain disruptions as well as inefficiencies within our own production.

展望未來，我們認為 COVID-19 可能會導致終端市場需求疲軟、供應鏈中斷以及我們自身生產效率低落。

Taking this into account, we expect total revenue for the second quarter of 2020 to be in the range of $520 million to $560 million.

考慮到這一點，我們預計 2020 年第二季的總收入將在 5.2 億美元至 5.6 億美元之間。

We expect non-GAAP earnings to be in the range of $0.11 to $0.17 per diluted share.

我們預計非 GAAP 攤薄後每股收益將在 0.11 美元至 0.17 美元之間。

This guidance includes the Mobility business up to the date -- to closing that we had on the date of this -- back on April 19, so the first 3 weeks of the quarter.

該指引包括截至 4 月 19 日截止日期（即本季前 3 週）的行動業務。

The EPS forecast is based on a diluted share count of approximately 107.4 million shares.

EPS 預測是基於約 1.074 億股的稀釋股數。

Our share count guidance includes dilutive securities such as options and RSUs, but no shares associated with our convertible bonds, which is a function of our future stock price.

我們的股份數量指導包括期權和 RSU 等稀釋性證券，但不包括與我們的可轉換債券相關的股票，這是我們未來股價的函數。

As a reminder, for every $1 increase in the average share price above $14.26 during a quarter, our shares outstanding would increase by approximately 1.5 million shares.

提醒一下，一個季度內平均股價每上漲 1 美元超過 14.26 美元，我們的流通股就會增加約 150 萬股。

We expect that SG&A expense will be about 8.2% of revenue in the second quarter and R&D to be approximately 1% of revenue.

我們預計第二季銷售及管理費用將佔營收的 8.2% 左右，研發費用將佔營收的 1% 左右。

We expect interest expense to total about $17.6 million.

我們預計利息支出總計約 1760 萬美元。

Finally, we estimate our effective tax rate to be between 13% and 17%.

最後，我們估計我們的有效稅率在 13% 到 17% 之間。

To assist you in developing your financial models, we offer the following additional information.

為了幫助您開發財務模型，我們提供以下附加資訊。

During the second quarter, we expect to record amortization of intangibles of about $11.1 million, stock-based compensation expense of about $3.8 million, noncash interest expense of approximately $3.5 million, and we estimate depreciation expense will be approximately $25.8 million.

在第二季度，我們預計無形資產攤銷約為 1,110 萬美元，股票補償費用約為 380 萬美元，非現金利息費用約為 350 萬美元，我們預計折舊費用約為 2,580 萬美元。

Additionally, as announced earlier today, we expect to incur restructuring costs, including asset write-downs, of approximately $25 million over the next 12 to 15 months as we close 2 plants in our Electro-Mechanical Solutions business unit.

此外，正如今天早些時候宣布的，由於我們關閉機電解決方案業務部門的 2 家工廠，我們預計在未來 12 至 15 個月內將產生約 2500 萬美元的重組成本，包括資產減記。

Of this amount, we expect approximately $17 million will be cash expenditures for things like severance and other costs.

其中，我們預計大約 1700 萬美元將用於支付遣散費和其他費用等現金支出。

Finally, I'd like to announce that we'll be participating virtually in the JP Morgan Global Technology, Media and Communications Conference on May 12; and Needham Technology and Media Conference on May 19; the Baird Global Technology and Consumer Conference on June 2; and the Stifel Cross Sector Insight Conference on June 9.

最後，我想宣布，我們將以虛擬方式參加 5 月 12 日舉行的摩根大通全球技術、媒體和通訊會議；以及 5 月 19 日舉行的 Needham 科技與媒體會議； 6 月 2 日舉行的貝爾德全球技術與消費者會議；以及 6 月 9 日舉行的 Stifel 跨部門洞察會議。

That concludes our prepared remarks.

我們準備好的演講到此結束。

And now we'd like to open the line for questions.

現在我們想開通提問專線。

Sarah?

莎拉？

(Operator Instructions) And we will take our first question.

（操作員說明）我們將回答第一個問題。

Can you hear me?

你聽得到我嗎？

Yes.

是的。

Great.

偉大的。

Well, first of all, I hope your 10 employees are recovering safely, some testing positive from COVID-19.

首先，我希望您的 10 名員工能夠安全康復，其中一些員工的 COVID-19 檢測結果呈陽性。

And I'm glad to hear about all the proactive steps you've taken to keep everybody safe.

我很高興聽到你們為確保每個人的安全而採取的所有積極措施。

So thank you for that.

非常感謝你的幫忙。

And then secondly, just talking about the disruptions you're facing, what in particular areas of your supply chain are you seeing bottlenecks and are they rolling around?

其次，談談您面臨的中斷，您在供應鏈的哪些特定領域遇到了瓶頸，它們是否正在發生？

And how surmountable do you see these supply chain challenges through the rest of the year?

您認為今年剩餘時間這些供應鏈挑戰的克服能力如何？

Okay.

好的。

Sure thing.

當然可以。

That was Mike, right?

那是麥克，對吧？

Yes.

是的。

Hey, Mike.

嘿，麥克。

Yes.

是的。

So let me address -- first of all, thank you for the comments.

因此，讓我講話——首先，感謝您的評論。

And the answer on the first part of your question, so of the 10 instances of COVID-19 that we've had in North America, all but 1 are folks out of the hospital recovering out of the hospital.

關於你的問題第一部分的答案，在我們在北美發現的 10 例 COVID-19 病例中，除了 1 例外，其餘都是出院後正在康復的人。

And actually, 1 of the employees has now tested negative and is back at work.

事實上，其中一名員工的檢測結果呈陰性，並已返回工作崗位。

So really glad to see that.

很高興看到這一點。

And the employee that is in the hospital, we are hopeful that she seems to be recovering, stable and recovering at this point.

至於那位在醫院的員工，我們希望她目前正在康復、穩定並且康復。

So thank you for that.

非常感謝你的幫忙。

We, obviously, we spend a lot of time on this.

顯然，我們在這方面花了很多時間。

This is job #1 for TTM is the protection of our employees and we take it very, very seriously.

這是迅達的首要任務，就是保護我們的員工，我們非常非常認真地對待它。

So I appreciate your comments there.

所以我很感謝你的評論。

As we look at potential disruptions on Q2, they're really 2 areas; one, so with our policies, with the way that the importance of employee safety, we have been and will continue to be very forgiving for those employees who just are uncomfortable coming into work.

當我們審視第二季度的潛在幹擾時，它們實際上是兩個領域：第一，根據我們的政策，考慮到員工安全的重要性，我們一直並將繼續對那些在工作中感到不舒服的員工非常寬容。

So we have some instances of that.

我們有一些這樣的例子。

We've actually done, I think a very good job of managing this.

我認為我們實際上在管理這方面做得非常好。

Generally we have over 90% of our employees in place in North America; and Asia Pacific, it's the full complement of employees.

一般來說，我們90%以上的員工都在北美；在亞太地區，則是員工的全面補充。

So I think we're doing a good job of managing that.

所以我認為我們在管理方面做得很好。

I think the employees are recognizing the safety measures that we're taking, and so that has continued to improve.

我認為員工正在認識到我們正在採取的安全措施，因此我們的安全措施不斷得到改善。

But we have to also be very conscious of the need to, if we do have an instance of COVID, to properly sterilize an area in manufacturing and we have to take that into account as we think about Q2.

但我們也必須非常意識到，如果確實出現了新冠疫情，就需要對製造業的某個區域進行適當的消毒，在考慮第二季時我們必須考慮到這一點。

On the supply chain side, so to date we've had several instances of suppliers who either needed to shut down or in some way because of inefficient production were not able to meet our needs.

在供應鏈方面，到目前為止，我們已經遇到了幾個供應商的例子，他們要么需要關閉，要么因為生產效率低下而無法滿足我們的需求。

Our supply chain organization, I think has done a very good job of mitigating this to date; primarily, materials coming out of North America.

我認為我們的供應鏈組織迄今為止在緩解這一問題方面做得非常好；主要是來自北美的材料。

And so the shutdowns in the few instances that we've experienced this have been relatively short.

因此，我們經歷過的少數情況下，關閉時間相對較短。

So again, you never know what can come your way in this climate, so we're careful.

再說一次，你永遠不知道在這種氣候下會發生什麼，所以我們要小心。

But to date, it's been managed very well.

但到目前為止，它已經被管理得很好。

Thank you, Tom.

謝謝你，湯姆。

I'll ask one more, kind of a related question.

我會再問一個相關的問題。

What if -- how at all can you attribute any reduction in demand to bottlenecks or supply chain disruptions of your customers and that you're seeing in other parts of their business?

如果——你怎麼能將需求的減少歸因於客戶的瓶頸或供應鏈中斷以及你在他們業務的其他部分看到的情況呢？

Very, very difficult at this juncture for us to determine.

目前我們很難確定。

If we look at markets which have -- and if you look at our Q2 guidance, the markets that are especially weak right now -- automotive, aerospace -- these are markets that are being affected by demand.

如果我們看看那些目前特別疲軟的市場——汽車、航空航太——這些市場正在受到需求的影響。

So really not supply chain-related.

所以確實與供應鏈無關。

The markets where we're experiencing more strength, whether it's medical/industrial/instrumentation, computing, certainly A&D and increasingly improving climate in networking/communications, when it comes to those markets, A&D, I can comment on.

我們正在經歷更強勁的市場，無論是醫療/工業/儀器儀表、計算，當然還有航空航天和國防，以及日益改善的網路/通訊環境，當談到這些市場時，我可以評論航空航天和國防。

I think that we're continuing to -- I think there are pockets of shortages.

我認為我們將繼續——我認為存在一些短缺。

But again, the supply base understands the importance of the mission and is responding overall.

但供應基地再次了解任務的重要性並正在全面回應。

When you cross into the commercial side, I would expect that -- so certainly computing -- where there's been a short-term spike, whether it's medical or computing, datacenter requirements, even semiconductor, I think in those areas you can start to see shortages emerge just because of the challenge of dealing with demand spikes on top of some restraints on supply with COVID.

當你進入商業領域時，我預計——當然是計算領域——會出現短期峰值，無論是醫療還是計算、數據中心需求，甚至半導體，我認為在這些領域你可以開始看到之所以出現短缺，是因為除了新冠疫情對供應的一些限制之外，還面臨著應對需求激增的挑戰。

So those are areas where our customers may, this is a hypothesis, they may be experiencing those shortages in certain areas and then they jump on it and try to solve the challenges.

因此，這些是我們的客戶可能會遇到的領域，這是一個假設，他們可能在某些領域遇到這些短缺，然後他們會抓住它並嘗試解決挑戰。

But again, my view on this one is it's not as clear as I'd like it to be and, of course, the situation is changing regularly.

但同樣，我對此的看法是，它並不像我希望的那麼清晰，當然，情況正在定期改變。

And we will go to our next question.

我們將討論下一個問題。

Jim Ricchiuti with Needham.

吉姆·裡丘蒂和李約瑟。

Question on the automotive.

關於汽車的問題。

It looks like that was down a fair amount year-over-year, and I think you cited you have fewer production days and demand weakness.

看起來同比下降了相當多，我想你提到了生產天數減少和需求疲軟。

Was demand weakness a bigger component of it?

需求疲軟是其中更重要的因素嗎？

Like, because, it does seem like you're suggesting maybe a bottom, at least in the near term, because if I heard you correctly you're anticipating it looks like some improvement in Q2 in this area.

就像，因為，你似乎確實在暗示，至少在短期內可能會觸底，因為如果我沒聽錯的話，你預計第二季在這一領域會有所改善。

Yes.

是的。

So I'm going to preface my comment by saying, I've said this before and, unfortunately, I was wrong.

因此，我將在我的評論前說​​，我以前說過這一點，不幸的是，我錯了。

I thought approximately a year ago I thought we'd really bottomed out in Europe.

大約一年前，我認為我們在歐洲真的已經觸底。

But it just takes a little pandemic to really show you how depressed demand can get.

但只需要一場小小的流行病就能真正向您展示需求的低迷程度。

But, so having said that, where we're experiencing the challenges in Q1, it was a combination with the extended Chinese New Year and really throughout February relatively low utilization or ability for employees to return.

但是，話雖如此，我們在第一季遇到的挑戰是與農曆新年的延長相結合的，而且整個二月的利用率或員工返回的能力相對較低。

March was much better.

三月好多了。

And so that did constrain -- certainly constrain our ability to produce product across the board in our commercial markets.

因此，這確實限制了——當然限制了我們在商業市場全面生產產品的能力。

But in automotive in addition, of course, China demand, Asia demand was way, way down, and European demand was very soft.

但在汽車領域，當然，中國的需求、亞洲的需求大幅下降，歐洲的需求非常疲軟。

So fast-forwarding into what we see coming this quarter, you're right, sequentially relatively flat, maybe a little bit up.

因此，快進到我們看到的本季情況，你是對的，連續相對持平，也許會有所上升。

But that's up because we are seeing now from March moving into April, we don't have the production constraints any longer, so we are able to get the production out into our hubs.

但這是因為我們現在看到從三月進入四月，我們不再受到生產限制，因此我們能夠將生產轉移到我們的中心。

And we're seeing, I would say, a slight, certainly slight improvement, but at least an improvement in the China demand situation.

我想說，我們看到了輕微的改善，當然是輕微的改善，但至少中國的需求狀況有所改善。

The flipside of that is North America weakening.

另一方面是北美市場的疲軟。

You put that together and we see, again, relatively flat, maybe a little bit up; but in this kind of environment, just overall very weak in automotive.

你把它們放在一起，我們再次看到，相對平坦，也許有點上升；但在這種環境下，汽車產業整體上就非常薄弱。

Got it.

知道了。

A follow-up question, and maybe just taking a step back.

一個後續問題，也許只是退後一步。

You guys are doing some work here on the business portfolio and it sounds like you're pretty much complete, at least on the divestment side.

你們在這裡做一些關於業務組合的工作，聽起來你們已經完成了，至少在撤資方面是如此。

And I'm wondering how we should think about capital deployment going forward, especially now, given the environment we're in.

我想知道我們應該如何考慮未來的資本部署，尤其是考慮到我們所處的環境。

What do you guys -- what's the thought process here?

你們怎麼看──這裡的思考過程是怎麼樣的？

Is it to strengthen the balance sheet, pay down debt?

是為了強化資產負債表、償還債務嗎？

Is it to maybe look at some other potential growth areas that you might expand in?

是不是想看看您可能會擴展的其他一些潛在成長領域？

Just wondering how we should think about this going forward.

只是想知道我們未來應該如何思考這個問題。

Sure.

當然。

I'll start and then I'll turn it to Todd to complete the answer.

我先開始，然後交給托德完成答案。

But if you look at, overall, we -- so we're very pleased with our balance sheet position.

但如果你看一下，總的來說，我們對我們的資產負債表狀況非常滿意。

As Todd mentioned, even with the challenges of Q1, we were still from an operating cash flow standpoint positive.

正如托德所提到的，即使面臨第一季的挑戰，我們從營運現金流的角度來看仍然是積極的。

We've been able to improve our debt leverage ratio.

我們已經能夠提高債務槓桿。

So we are making progress there and we have a very strong balance sheet, which we'll, of course, strengthen further with the funds arriving from China for the Mobility sale.

因此，我們正在這方面取得進展，我們擁有非常強大的資產負債表，當然，隨著來自中國的行動銷售資金的到來，我們將進一步加強這項資產負債表。

So when it comes to then deploying that capital, we have obligations that we need to fulfill.

因此，在部署這些資本時，我們有需要履行的義務。

And then we will continue to work on our working capital to maintain the right level of working capital.

然後我們將繼續努力處理我們的營運資金，以維持適當的營運資金水準。

And then finally, yes, we will continue to work on our M&A pipeline.

最後，是的，我們將繼續致力於我們的併購管道。

That's a regular effort.

這是一個經常性的努力。

And we have a pipeline of opportunity there that we'll continue to work if, and again, strategically if the right opportunity comes along.

我們在那裡有一系列機會，如果合適的機會出現，我們將繼續策略性地工作。

So those are sort of the 3 priorities for us.

這些是我們的三個優先事項。

But Todd, your comment?

但是托德，你有何評論？

Yes.

是的。

I would just supplement that with a little bit of specifics.

我只想補充一些細節。

So on the short-term side, I mentioned that we've got about $400 million of cash on our balance sheet.

因此，在短期方面，我提到我們的資產負債表上有大約 4 億美元的現金。

We've got capacity available on our ABL.

我們的 ABL 上有可用容量。

So we could take a punch or 2 and certainly continue to fight the strong fight in that sense.

因此，我們可以承受一兩拳，並且肯定會繼續從這個意義上進行激烈的戰鬥。

So we're pretty comfortable short term.

所以短期來看我們相當舒服。

Longer term, with the proceeds coming in from the sale of the Mobility business, we have certain obligations.

從長遠來看，隨著出售行動業務的收益，我們有一定的義務。

We can use it to reinvest in the business.

我們可以用它來再投資業務。

But as Tom says, we always evaluate the M&A pipeline, but in the absence of something actionable right now, we would be required to pay down the term loan.

但正如湯姆所說，我們總是評估併購管道，但在目前缺乏可採取行動的情況下，我們將被要求償還定期貸款。

And so our expectation here is that in the near term we'll pay down about $400 million of the term loan and that will help reduce our leverage even further, which will really give us a lot of strength in the balance sheet, dry powder, if you would, that basically gives us future flexibility.

因此，我們的預期是，在短期內，我們將償還約4 億美元的定期貸款，這將有助於進一步降低我們的槓桿率，這將真正為我們的資產負債表帶來很大的力量，乾粉，如果你願意的話，這基本上給了我們未來的靈活性。

If we find a strategic M&A opportunity that we like, we would be in a position to take action on that.

如果我們發現我們喜歡的策略併購機會，我們將能夠採取行動。

And as we continue to generate cash flow out of the business, we have options in terms of how to deploy that cash, whether it's reinvesting into the business or somehow returning it to shareholders.

隨著我們繼續從業務中產生現金流，我們可以選擇如何部署這些現金，無論是再投資於業務還是以某種方式將其返還給股東。

So all the options are on the table.

所以所有的選擇都在桌面上。

But in the immediate term, we see ourselves good short term, and as we collect the proceeds on the sale -- from the sale of Mobility, we'll use that in the short term to pay down debt and just even further strengthen our balance sheet.

但從短期來看，我們認為自己的短期狀況良好，當我們從出售 Mobility 中獲得出售收益時，我們將在短期內用它來償還債務，並進一步加強我們的平衡床單。

And we will go to our next question.

我們將討論下一個問題。

It's [Steve Fox].

這是[史蒂夫·福克斯]。

I guess can you just talk a little bit more about the gross margin comparison?

我想你能多談談毛利率比較嗎？

They held up extremely well, given that you lost a few weeks of production and your customers are down.

考慮到您損失了幾週的生產並且您的客戶減少，它們的表現非常好。

It seems like aerospace, defense, must have helped, and you have easy comps with the cell phone business versus a year ago.

看來航空航太、國防一定有幫助，而且與一年前相比，你與手機業務的比較也很容易。

But can you just sort of walk through the gross margin waterfall a little bit there?

但你能稍微經歷一下毛利率瀑布嗎？

Thanks.

謝謝。

So I assume you're referring to year-over-year, Steve?

所以我想你指的是同比，史蒂夫？

Yes, I am.

我是。

Sorry.

對不起。

Yes.

是的。

That's fine.

沒關係。

Yes.

是的。

Gross margin, relatively flat, right, 14.5% versus 14.6%.

毛利率相對持平（右），分別為 14.5% 和 14.6%。

And really you've got a couple of moving parts.

事實上，你有幾個活動部件。

Remember a year ago, the Mobility business was in very, very difficult straits.

還記得一年前，行動業務正陷入非常非常困難的困境。

We actually lost money in that quarter a year ago.

實際上，我們在一年前的季度虧損了。

The Mobility business, particularly the cellular business, was much better this year compared to last.

今年的行動業務，尤其是蜂窩業務，比去年好得多。

So that really helped on the upside.

所以這確實有好處。

And that helped to offset some of the challenges that we are seeing in some of the other end markets, particularly network and communications and automotive.

這有助於抵消我們在其他一些終端市場（特別是網路和通訊以及汽車）中看到的一些挑戰。

Both of those end markets were down significantly from a year ago, and that hurt us from a profit standpoint.

這兩個終端市場都比一年前大幅下降，從利潤的角度來看，這對我們造成了傷害。

But we were able to mitigate that through better performance out of the Mobility business.

但我們能夠透過行動業務更好的表現來緩解這一問題。

There are some other very minor puts and takes, but that's the big picture.

還有一些其他非常小的看跌期權和跌幅，但這就是大局。

Okay.

好的。

That's helpful.

這很有幫助。

And then just bigger picture, Tom, given all the disruptions and most likely tougher demand environment in the next few quarters, the PCB industry is notorious for not behaving well during these types of periods.

湯姆，從更大的角度來看，考慮到未來幾季的所有乾擾和很可能更加嚴峻的需求環境，PCB 行業因在這些時期表現不佳而臭名昭著。

Can you just sort of talk about your expectations for competition and whether you're seeing anything unusual at this point?

您能談談您對競爭的期望以及您目前是否看到任何不尋常的情況嗎？

Yes.

是的。

So yes, the -- I enjoy that comment on the PCB industry.

所以，是的，我喜歡對 PCB 行業的評論。

Let me talk about, I think that really is a strategic direction question.

我講一下，我覺得這確實是一個策略方向的問題。

From TTM's perspective, what we've been working on for a number of years, as you know, is really 2 for us.

從 TTM 的角度來看，正如您所知，我們多年來一直致力於的工作對我們來說實際上是 2。

One, where we -- in the PCB itself, moving into areas where we are clearly differentiated.

第一，我們在 PCB 本身領域，進入了我們明顯與眾不同的領域。

And so with the differentiation, moving away from areas that we view as commoditized areas.

因此，透過差異化，遠離我們視為商品化的領域。

That's been the thrust of our strategy.

這就是我們策略的主旨。

We've built on that by effectively building on top of the PCB, if you will, by adding the depth in terms of RF components, subsystems and the engineering capability that we built with the Anaren acquisition.

在此基礎上，我們透過在 PCB 之上進行有效建置（如果您願意的話），透過增加我們透過收購 Anaren 建立的射頻組件、子系統和工程能力方面的深度。

So if you start then parsing that out, the A&D world, of course, these are long-term programs, and we feel we have a very good position, again, very deep position in a number of critical programs.

因此，如果你開始解析這一點，當然，在 A&D 領域，這些都是長期計劃，我們覺得我們在許多關鍵計劃中擁有非常好的地位，同樣，非常深入的地位。

And so A&D, very solid.

A&D 非常紮實。

If you look at networking/communications, sure, more of a commercial market, more commercial competition there, but very complex board requirements.

如果你看看網路/通信，當然，更多的是商業市場，那裡有更多的商業競爭，但董事會要求非常複雜。

If you cross over into medical, MII field, that's where the footprint plays in.

如果你跨入醫療、MII 領域，那就是足跡發揮作用的地方。

Most of our customers are -- our customers because of our global capabilities there.

我們的大多數客戶都是我們的客戶，因為我們在那裡擁有全球能力。

And do you know what?

你知道嗎？

And I know I've said this before, but if we reach a point with a customer where they have gone to very high volumes and they've moved into -- and their wish is to move beyond the capabilities of even our Asia footprint, we will let business go in that area.

我知道我之前已經說過這​​一點，但如果我們與客戶達到了一個臨界點，他們的銷量非常大，並且他們已經進入了——他們的願望是超越我們亞洲足蹟的能力，我們將放開該地區的業務。

It's really all about the business development work that we do with our global footprint.

這其實與我們利用全球足跡進行的業務開發工作有關。

And then computing, again, an area that we are very specifically tied to the technologies that differentiate us there, the more complex builds that we do.

然後，計算，再次，我們與使我們脫穎而出的技術非常密切相關的領域，我們所做的更複雜的構建。

So Steve, it's not a perfect world.

所以史蒂夫，這不是一個完美的世界。

But what I can tell you is that I am confident that we have the right positions in these markets and that we've got the right technologies.

但我可以告訴你的是，我相信我們在這些市場中擁有正確的地位並且擁有正確的技術。

And obviously, strategically with our move here with E-MS, we're moving out of one area that we didn't see that differentiation, for TTM.

顯然，從戰略上講，我們透過 E-MS 遷移到這裡，對於 TTM 來說，我們正在走出一個我們沒有看到差異化的領域。

The Mobility move as well, while very challenging technology, all of the competition was in Asia.

移動性也是如此，雖然技術非常具有挑戰性，但所有的競爭都在亞洲。

And if you think about our differentiation, there was a technology play there, but not a global footprint play.

如果你考慮我們的差異化，你會發現那裡有技術競爭，但不是全球足跡競爭。

So hopefully that gives you an answer.

希望這能給你一個答案。

We're comfortable that we're in the right position here no matter what happens.

我們很高興，無論發生什麼，我們都處於正確的位置。

Yes, that's really helpful.

是的，這確實很有幫助。

It makes me feel a lot better.

這讓我感覺好多了。

Thanks.

謝謝。

And we'll go to our next question.

我們將討論下一個問題。

Will Stein here.

威爾斯坦在這裡。

You had a pretty strong book-to-bill in the quarter.

本季的訂單出貨量相當強勁。

And I wonder if you have any concerns about customers ordering safety stock or what some people call double ordering or something similar to that.

我想知道您是否對客戶訂購安全庫存或某些人所說的雙重訂購或類似的東西有任何擔憂。

Is any of that going on?

有這樣的事情發生嗎？

Or is this more sort of extending the backlog in aerospace, defense?

或者這更像是在延長航空航太、國防領域的積壓工作？

Any sort of color on this would be helpful.

任何類型的顏色都會有幫助。

Thanks.

謝謝。

Sure, Will.

當然，威爾。

And yes, I agree, it was a strong book-to-bill.

是的，我同意，這是一個強勁的訂單出貨量。

A portion of that, especially year-on-year was Mobility.

其中一部分，尤其是與去年同期相比，是移動性。

So remember, as we went into the quarter, we had Mobility, the Mobility business was part of TTM.

所以請記住，當我們進入本季時，我們擁有行動業務，行動業務是迅達的一部分。

So -- and it was certainly on a year-on-year compare far stronger in terms of bookings going into the quarter.

因此，就本季的預訂量而言，與去年同期相比肯定要強勁得多。

So that's a piece of it.

這就是其中的一部分。

And then, yes, you're right, the aerospace and defense, certainly the bookings there have helped.

然後，是的，你是對的，航空航天和國防，當然那裡的預訂有所幫助。

And the other piece that I would say is a big swing factor there was medical bookings coming in towards the end of the quarter, a number of medical bookings that then will be playing out here in terms of revenue over several quarters, which is unusual.

我要說的另一件事是一個很大的波動因素，即在本季末出現了醫療預訂，隨後將在幾個季度的收入方面體現出大量的醫療預訂，這是不尋常的。

Usually that's a -- you don't see that kind of visibility in the medical world, it's usually a shorter time span.

通常這是——你在醫學界看不到這種可見性，它通常是一個較短的時間跨度。

So a little bit unusual there.

所以那裡有點不尋常。

I haven't seen any of the double-booking activity in particular with the bookings.

我還沒有看到任何重複預訂的活動，特別是預訂。

We haven't seen cancellations.

我們還沒有看到取消。

But certainly a portion of those bookings went away as we sold the Mobility business.

但隨著我們出售行動業務，這些預訂的一部分肯定消失了。

That's helpful.

這很有幫助。

Maybe if I can dig into the E-MS restructuring for a minute.

也許我可以深入研究 E-MS 重組。

I just want to make sure I understand.

我只是想確保我理解。

Is this an exit of that business?

這是該業務的退出嗎？

I think that it is, but I'm just not sure if it was explicitly stated.

我認為是的，但我不確定是否明確說明了這一點。

And then what does the exit look like over protracted number of quarters, is it just 1 or 2?

那麼，在漫長的幾個季度中，退出會是什麼樣子，只是 1 個季度還是 2 個季度？

Is there anything left in that business?

那個行業還剩下什麼嗎？

And is there anything at all there to sell?

那裡有什麼東西可以賣嗎？

Or is this just a walk-away sort of situation?

或者這只是一種走開的情況？

So yes.

所以是的。

Will, thanks for the question.

威爾，謝謝你的提問。

So the restructuring that we announced, effectively, we had 3 facilities in E-M Solutions; 2 of the 3 will be closed and 1 will remain, which is our backplane facility.

因此，我們宣布的重組實際上使我們在 E-M Solutions 擁有 3 個工廠； 3 個中的 2 個將關閉，1 個將保留，這是我們的背板設施。

That will be folded into our operations in Asia.

這將併入我們在亞洲的業務。

So we will keep that.

所以我們會保留它。

It's a relatively small business, on the order of -- if you think about $40 million-ish revenue.

這是一個相對較小的企業，如果你考慮一下 4000 萬美元左右的收入的話。

So relatively small.

所以相對較小。

But we'll be holding onto that business, tied mainly to network and communications.

但我們將保留該業務，主要與網路和通訊相關。

The other 2, the 2 plant locations have a different time horizon in terms of shutdown.

另外 2 個工廠地點的停工時間範圍不同。

But if you think about the next -- through the course of the year, we'll be winding down operations, taking care of customer obligations in both instances.

但如果你考慮接下來的一年，我們將逐步減少運營，同時在這兩種情況下履行客戶義務。

And so certainly by the end of the year, we should be at that point, have completed the obligations that we have with our customers and be in a full shutdown and cleanup mode.

因此，到今年年底，我們肯定會完成對客戶的義務，並處於全面關閉和清理模式。

From a residual value, if you will, in the assets, of course, there's the equipment.

從殘值來看，如果你願意的話，在資產中，當然還有設備。

There is an equipment value there potentially and then the land value of what we own in our Shanghai E-MS facility where we actually own the land.

那裡有潛在的設備價值，然後是我們在上海 E-MS 設施中擁有的土地價值，我們實際上擁有土地。

So there is value there that's outstanding, but difficult, certainly in these conditions, to be able to count on that at this point.

因此，那裡的價值是突出的，但在目前的情況下當然很難指望這一點。

Maybe just one clarification, if I can.

如果可以的話，也許只是一個澄清。

I don't mean to pile on.

我並不是有意堆砌。

But does this stay in the non-GAAP guidance?

但這是否仍保留在非公認會計準則指引中？

Or does it go to disc ops?

或者它會進入光碟操作嗎？

Thank you.

謝謝。

Yes, let me just try to clarify, Will.

是的，讓我試著澄清一下，威爾。

It will continue.

它將繼續。

We'll run the business as we fulfill our customer obligations over the next few quarters, as Tom indicated, 2 to 3 quarters, let's say.

正如湯姆所指出的，我們將在接下來的幾季履行客戶義務的同時經營業務，比方說是兩到三個季度。

It is included in our guidance in that respect.

它已包含在我們這方面的指南中。

To the extent there are extra costs specific to the restructuring process, we will carve those out, and that was the guidance that I tried to provide on the roughly $25 million that'll take place over the next 12 to 15 months.

如果重組過程中存在特定的額外成本，我們將扣除這些成本，這就是我試圖為未來 12 至 15 個月內將發生的大約 2500 萬美元提供的指導。

A lot of that is severance-related.

其中很多與遣散費有關。

So as we complete our work and our people roll off from the company, that will show up over time.

因此，當我們完成工作並且我們的員工離開公司時，這一點會隨著時間的推移而顯現出來。

I don't think it'll be a cliff situation.

我認為這不會是懸崖勒馬的情況。

I think it'll be gradual as we complete our, you know, and gradually wind down.

我認為，隨著我們完成我們的工作，這將是漸進的，並且逐漸結束。

But from a revenue and ongoing profit standpoint, that is reflected in our guidance, the ongoing part of it.

但從收入和持續利潤的角度來看，這反映在我們的指導中，也就是持續的部分。

And we'll take our next question.

我們將回答下一個問題。

It's Paul Chung with JPMorgan.

我是摩根大通的保羅鐘 (Paul Chung)。

So a couple quick ones.

所以有幾個快速的。

Just on the Mobility business, given the kind of innovation that occurs in that vertical, do you see any benefits or loss of benefits given the exit there or just kind of stay ahead of trends?

就行動業務而言，考慮到該垂直領域發生的創新，您是否認為退出該領域會帶來任何好處或利益損失，或者只是保持領先於趨勢？

Or is there another vertical that provides you these insights in your view?

或者在您看來，還有其他垂直領域可以為您提供這些見解嗎？

And then I have a quick follow-up.

然後我會進行快速跟進。

Sure.

當然。

Thanks, Paul.

謝謝，保羅。

So when we're looking, really, the simple way to think about it is lines and spacing.

因此，當我們尋找時，實際上，思考它的簡單方法是線條和間距。

And what the cellular phone business has driven to are lines and spacing that are very, very close to semiconductor-like in terms of moving below 30 microns.

手機業務所推動的線路和間距在 30 微米以下變得非常非常接近半導體。

And we adopted some technologies that helped us to get to between the 20 and 30 micron level.

我們採用了一些技術來幫助我們達到 20 至 30 微米的水平。

What we're seeing, and we've talked to this in the past, we are seeing a trend in our other businesses to move towards narrower lines and spacing.

我們所看到的，並且我們過去已經討論過這一點，我們看到我們其他業務的趨勢是朝著更窄的線條和間距發展。

But as we look at the sheer capacity requirements there, they're much smaller and, frankly, most of the requirements are above 50 micron.

但當我們看看那裡的絕對容量要求時，它們要小得多，而且坦白說，大多數要求都在 50 微米以上。

We have some technology, some capabilities that we've acquired with the i3 acquisition that will help us in that kind of area, in that 50 micron- to 80 micron-type area.

我們透過收購 i3 獲得了一些技術和能力，這將在 50 微米到 80 微米類型的領域為我們提供幫助。

And then we have retained the mSAP or the substrate-like PCB technology and know-how in our facility.

然後我們在我們的工廠保留了 mSAP 或類基板 PCB 技術和專有技術。

So that to the extent that there are smaller capacity requirements, we can certainly go forward and invest in those.

因此，只要產能需求較小，當然可以繼續投資。

But today, that demand is very, very small and we have the capability resident with what we inherited from i3 to service those needs.

但如今，這種需求非常非常小，而我們擁有從 i3 繼承的能力來滿足這些需求。

So pretty comfortable with where we stand in technology.

我們對我們在技術方面的立場非常滿意。

Thanks for that.

感謝那。

And then just on your operating margin targets from your slides of 12% to 14% free cash flow, $230 million, $270 million, what's the kind of time frame of hitting these targets?

然後，就你的營業利潤率目標而言，從 12% 到 14% 的自由現金流、2.3 億美元、2.7 億美元，實現這些目標的時間範圍是多少？

And are you comfortable now with the product mix and kind of end markets to kind of hit these goals?

現在您對實現這些目標的產品組合和終端市場感到滿意嗎？

Or should we expect to see any kind of changes to your portfolio over time?

或者我們應該期望看到您的投資組合隨著時間的推移而發生任何變化？

Thanks, guys.

多謝你們。

Tom, you want me to try it?

湯姆，你想讓我試試嗎？

Yes, I was going to let you take that side of that.

是的，我本來打算讓你站在那一邊的。

So, Paul, you're right, those are our stated objectives, and we are marching towards that.

所以，保羅，你是對的，這些是我們既定的目標，我們正在朝著這個目標邁進。

We've obviously had a couple of hiccups in terms of the commercial markets last year, particularly cellular, but all the commercial markets having challenges.

去年我們在商業市場方面顯然遇到了一些問題，特別是蜂窩市場，但所有商業市場都面臨挑戰。

And obviously, the virus is really putting a wrench in the gears, if you will, here as we look at 2020.

顯然，當我們展望 2020 年時，如果你願意的話，病毒確實會阻礙我們的發展。

We will weather this storm and we'll move forward.

我們將渡過這場風暴，繼續前進。

Certainly, some of the changes that we've announced with the divestiture and the plant closures are all going to be beneficial.

當然，我們宣布的資產剝離和工廠關閉的一些變化都將是有益的。

We are exiting lower margin businesses, and that will certainly help us towards this goal.

我們正在退出利潤率較低的業務，這肯定會幫助我們實現這一目標。

As far as a specific time line, we do need a little revenue help.

就具體的時間表而言，我們確實需要一點收入幫助。

We need the economy to get a little stronger.

我們需要經濟變得更強勁。

So it's hard to say, is it 1 year, is it 2 years, to put a specific date on it?

所以很難說，是1年還是2年，要具體的日期嗎？

But we do need the economy to recover and we need to get some top line to support us there.

但我們確實需要經濟復甦，我們需要一些收入來支持我們。

But those are still our targets.

但這些仍然是我們的目標。

We still feel the underlying ability of the business to achieve those is very real.

我們仍然認為企業實現這些目標的潛在能力是非常真實的。

We just need to see the economy a little stronger, and last year and this year have been a little trough right now.

我們只需要看到經濟稍微強勁一點，去年和今年現在都有點低谷。

And we'll take our next question.

我們將回答下一個問題。

It's Matt Sheerin from Stifel.

我是來自 Stifel 的馬特謝林。

Just another question regarding the automotive market.

這是關於汽車市場的另一個問題。

I know that you've been trending below market in terms of sales reduction in the last 2 or 3 quarters.

我知道過去兩三個季度的銷售額下降趨勢低於市場水準。

But now you're guiding relatively flat, give or take, when other parts of the supply chain are modeling down 20%, 30% sequentially in line with production cuts.

但現在，當供應鏈的其他部分隨著產量削減而持續下降 20%、30% 時，你的指導相對平穩，無論有多少。

So I'm trying to figure out the differences there, Tom.

所以我正在努力找出其中的差異，湯姆。

And maybe helpful would be the geographic breakdown of the business, maybe more China exposure, and that's why you're seeing that recover a little bit earlier than others?

也許有幫助的是業務的地理細分，也許更多的中國業務，這就是為什麼你看到它比其他人早一點恢復？

So yes, Matt, you actually covered it pretty well.

所以，是的，馬特，你實際上講得很好。

There's a couple things going on.

有幾件事正在發生。

One is in the first quarter, we lost our production in February.

一是在第一季度，我們在二月失去了生產。

And if you remember, we generally will -- so with February production being as low as it was, we were running behind in terms of revenue.

如果你還記得的話，我們通常會——因此，由於二月的產量如此之低，我們在收入方面落後了。

In March, we were able to really get into full production again, get product out.

到了三月份，我們才能夠真正全面投入生產，把產品拿出來。

But that had a real impact on revenue in the first quarter.

但這對第一季的收入產生了真正的影響。

So we had that factor.

所以我們有這個因素。

Of course, now we're back into full production capability.

當然，現在我們已恢復全面生產能力。

So now we're really starting to deal with more true demand.

所以現在我們真的開始處理更真實的需求。

The second factor there is, yes, China was way down.

第二個因素是，是的，中國大幅下滑。

And China, if you think about our markets, you'd sort of split them equally between China, Europe, North America.

而中國，如果你考慮我們的市場，你會發現它們在中國、歐洲和北美之間平均分配。

We were feeling particular weakness in China, a little bit lesser extent but still weak in Europe.

我們覺得中國特別疲軟，程度稍輕一些，但歐洲仍然疲軟。

We hadn't felt really North America; it was down, but not down substantially in the first quarter.

我們並沒有感受到真正的北美；我們沒有感受到真正的北美。有所下降，但第一季並未大幅下降。

As we go into the second quarter, what we're really seeing now is North America weaken, China strengthen a little bit sequentially, Europe remaining relatively soft.

當我們進入第二季時，我們現在真正看到的是北美疲軟，中國略有增強，歐洲仍然相對疲軟。

So if you start to look at that, the biggest difference there is just the production basically, ability to actually produce throughout the quarter.

因此，如果你開始關注這一點，你會發現最大的差異基本上只是生產，即整個季度實際生產的能力。

And that leads to, again, a slight up.

這再次導致了小幅上漲。

It's relatively flat, slight up in what we're seeing in the quarter.

它相對持平，比我們在本季度看到的略有上升。

Okay.

好的。

And have you seen any big changes in terms of bookings or orders yet from customers, particularly in Europe or North America?

您是否發現客戶的預訂或訂單發生了任何重大變化，特別是在歐洲或北美？

Europe and -- so not really.

歐洲——所以不是真的。

Not really.

並不真地。

I think that it's with -- as you know, the plan is to get back into operation, yes.

我認為，正如你所知，計劃是恢復運營，是的。

And of course, our customers, as generally Tier 1s, want to make sure that they have the right inventory levels.

當然，我們的客戶（通常是一級客戶）希望確保他們擁有正確的庫存水準。

So in some cases, there's a little bit of, hey, yes, we need to replenish inventory in some areas.

所以在某些情況下，有一點，嘿，是的，我們需要在某些地區補充庫存。

But I'd say overall still very soft in North America and Europe and a little bit of improvement in China.

但我想說，北美和歐洲總體上仍然非常疲軟，而中國則略有改善。

Okay.

好的。

That's helpful.

這很有幫助。

And then in the network/communications area where you talked about weakness, could you talk about or maybe dig a little deeper in terms of the end markets there, service providers versus enterprise, and also on the 5G side?

然後，在您談到弱點的網路/通訊領域，您能否談談或深入挖掘那裡的終端市場、服務提供者與企業以及 5G 方面的情況？

Yes.

是的。

Networking side enterprise -- so networking overall was weak in the first quarter.

網路方面的企業——因此第一季網路整體表現疲軟。

Again, we do have the production factor.

再說一次，我們確實有生產要素。

So again, we were shut down in that for much of that February period, so that has an impact on revenues.

同樣，我們在二月的大部分時間裡都處於關閉狀態，因此這對收入產生了影響。

But if you start looking at the end markets, particularly enterprise inside of networking was weak in the first quarter.

但如果你開始關注終端市場，尤其是網路內部的企業市場，第一季表現疲軟。

And as I highlighted, we did see some improvement, particularly towards the end of the quarter on the telecom side.

正如我所強調的，我們確實看到了一些改善，特別是在電信方面的季度末。

That improvement has continued as we move into the second quarter, and we're actually starting to see a better climate again in networking in particular to enterprise.

隨著進入第二季度，這種改善仍在繼續，我們實際上開始再次看到網路尤其是企業網路的更好氛圍。

So that's where we're seeing improvement now in the second quarter.

這就是我們在第二季看到的改進。

And we have no further questions queued at this time, so I'd like to turn the conference back over to Tom Edman for any additional or closing remarks.

目前我們沒有進一步的問題，因此我想將會議轉回湯姆·埃德曼（Tom Edman）進行補充或結束語。

Thank you, Sarah.

謝謝你，莎拉。

I'd like to just close by summarizing some of the critical points I made earlier.

最後，我想總結一下我之前提出的一些關鍵點。

First, the health and safety of our employees is our highest priority and we are taking and will continue to take proactive measures to safeguard our employees while we continue to support our customers.

首先，員工的健康和安全是我們的首要任務，我們正在並將繼續採取積極措施保護我們的員工，同時繼續支持我們的客戶。

Second, we delivered earnings above the guided range, despite extended shutdowns of our Chinese facilities.

其次，儘管我們的中國工廠長期關閉，但我們的利潤仍高於指導範圍。

Third, we closed the sale of the Mobility business unit, which will reduce the volatility we have historically seen in our business performance and fits very well with our core strategies of diversification, differentiation and discipline.

第三，我們完成了行動業務部門的出售，這將減少我們歷史上業務業績的波動性，並且非常符合我們多元化、差異化和紀律性的核心策略。

And fourth, we announced the restructuring of our E-MS business unit, which will improve our margin profile.

第四，我們宣布重組我們的 E-MS 業務部門，這將改善我們的利潤狀況。

In closing, I would just like to thank our employees and, particularly, our employees in this environment, our customers and our investors for your continued support as we navigate challenges here with our business associated with COVID-19.

最後，我要感謝我們的員工，特別是在此環境下的員工、我們的客戶和投資者，感謝你們在我們應對與 COVID-19 相關業務的挑戰時給予我們的持續支持。

Thank you.

謝謝。

Good-bye and please stay safe all of you.

再見，請大家注意安全。

Thank you very much.

非常感謝。

And that does conclude today's conference call.

今天的電話會議到此結束。

Thanks everyone for joining us.

感謝大家加入我們。

You may now disconnect.

您現在可以斷開連線。