TTM Technologies Inc (TTMI) 2022 Q2 法說會逐字稿

Good day, everyone, and welcome to the TTM Technologies Second Quarter 2022 Financial Results Conference Call. (Operator Instructions)

大家好，歡迎參加迅達科技 2022 年第二季度財務業績電話會議。 （操作員說明）

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

TTM 企業發展和投資者關係副總裁 Sameer Desai 現在將審查 TTM 的披露聲明。

Thank you, April. Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook. Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the factors explained in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission.

謝謝你，四月。在開始之前，我想提醒大家，今天的電話會議包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括與迅達未來業務前景相關的陳述。由於一項或多項風險和不確定性，包括我們最近提交給證券交易委員會的 10-K 表格年度報告和其他文件中解釋的因素，實際結果可能與這些前瞻性陳述存在重大差異。

These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation. TTM does not undertake any obligation to publicly update or revise any of these statements, whether as a result of new information, future events or other circumstances, except as required by law. Please refer to the disclosures regarding the risks that may affect TTM, which may be found in the reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the company's other SEC filings.

這些前瞻性陳述基於管理層截至本演示文稿之日的預期和假設。 TTM 不承擔任何義務公開更新或修改任何這些聲明，無論是由於新信息、未來事件或其他情況，除非法律要求。請參閱有關可能影響 TTM 的風險的披露，這些披露可在表格 10-K、10-Q、8-K 的報告、表格 S-4 的註冊聲明和公司的其他 SEC 文件中找到。

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

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

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

我現在想把電話轉給迅達的首席執行官湯姆·埃德曼。

Thank you, Sameer. Good afternoon, and thank you for joining us for our second quarter fiscal year 2022 conference call.

謝謝你，薩米爾。下午好，感謝您加入我們的 2022 財年第二季度電話會議。

I'll begin with a review of our business highlights from the quarter and a discussion of our second quarter results, followed by a summary of our business strategy. Todd Schull, our CFO, will follow with an overview of our Q2 2022 financial performance and our Q3 2022 guidance. We will then open the call to your questions. The quarter's highlights are also shown on Slide 3 of the investor presentation posted on TTM's website.

我將首先回顧我們本季度的業務亮點並討論我們的第二季度業績，然後是我們的業務戰略摘要。我們的首席財務官 Todd Schull 將隨後概述我們 2022 年第二季度的財務業績和 2022 年第三季度的指導。然後，我們將打開您的問題的電話。本季度的亮點也顯示在 TTM 網站上發布的投資者演示文稿的幻燈片 3 中。

In the second quarter of 2022, TTM delivered an outstanding quarter with revenues and non-GAAP EPS above the high end of guidance despite a challenging supply chain and labor environment and the continued impact that COVID-19 is having on our business. Revenues were up 10.3% year-on-year, the second consecutive quarter of double-digit growth as our commercial markets drove the year-on-year increase.

在 2022 年第二季度，儘管供應鍊和勞動力環境充滿挑戰，以及 COVID-19 對我們的業務產生持續影響，迅達仍實現了出色的季度收入和非公認會計原則每股收益高於指引的高端。收入同比增長 10.3%，連續第二個季度實現兩位數增長，因為我們的商業市場推動了同比增長。

We saw a significant jump in our profit margins in Q2 as many of the cost headwinds that we have faced over the past year turned into tailwinds. Specifically, we saw improved product mix globally, favorable foreign exchange rates as the Chinese RMB weakened against the dollar, lower metal prices and improved productivity in North America. We also enjoyed very strong levels of quick-turn business that contributed to our profitability. I am extremely proud of our employees for delivering outstanding results this quarter.

由於我們在過去一年中面臨的許多成本逆風變成了順風，我們在第二季度看到了利潤率的大幅增長。具體而言，我們看到全球產品組合有所改善，人民幣兌美元走弱導致匯率有利，金屬價格下跌以及北美生產力提高。我們還享有非常強勁的快速周轉業務水平，這為我們的盈利能力做出了貢獻。我為我們的員工在本季度取得優異成績感到非常自豪。

We had previously discussed pay adjustments that we made in the first quarter of this year in North America to increase our competitiveness. Since then, we have seen a general improvement in our ability to attract and retain talent, though the labor market is still tight in specific regions. The price increases that will offset these higher compensation costs are still anticipated to have a positive impact on our margins through the balance of the year. We expect that the elevated high margin quick-turn business, realized in Q2, will normalize in Q3 and will offset the margin improvements from price increases on a sequential basis. However, our margins are expected to be up on a year-on-year basis.

我們之前曾討論過今年第一季度在北美進行的薪酬調整，以提高我們的競爭力。從那時起，我們看到我們吸引和留住人才的能力普遍提高，儘管某些地區的勞動力市場仍然緊張。預計將抵消這些較高補償成本的價格上漲仍將對我們今年餘下的利潤產生積極影響。我們預計第二季度實現的高利潤率快速轉向業務將在第三季度正常化，並將抵消價格上漲帶來的利潤率改善。但是，我們的利潤率預計將同比上升。

Finally, I would like to mention that TTM published our first corporate, social responsibility report or CSR. And it is available on our website on the Sustainability page under the About TTM section. The report highlights TTM's commitment to CSR and the environmental, social and governance or ESG initiatives that are an integral part of the way we do business.

最後，我想提一下 TTM 發布了我們的第一份企業、社會責任報告或 CSR。它可以在我們網站上關於 TTM 部分的可持續發展頁面上找到。該報告強調了迅達對企業社會責任以及環境、社會和治理或 ESG 舉措的承諾，這些舉措是我們開展業務方式不可或缺的一部分。

I would now like to provide a strategic update. TTM is on a journey to transform our business to be less cyclical and more differentiated. As part of this strategic transition, near the end of the second quarter, we closed the acquisition of Telephonics. Over the past several years, TTM has consistently emphasized that a key part of our strategy is to add value to the product solutions that we deliver to our customers, particularly in the aerospace and defense market.

我現在想提供一個戰略更新。 TTM 正在將我們的業務轉變為更少週期性和更具差異化的旅程。作為這一戰略轉型的一部分，在接近第二季度末，我們完成了對 Telephonics 的收購。在過去的幾年裡，迅達一直強調我們戰略的一個關鍵部分是為我們提供給客戶的產品解決方案增加價值，特別是在航空航天和國防市場。

In 2018, we acquired Anaren, which broadened TTM's product portfolio into highly engineered RF components and subassemblies as well as adding critical RF engineering capability and resources. Telephonics builds on Anaren and TTM's customer-driven culture and disciplined approach to engineering and manufacturing by further broadening TTM's aerospace and defense product offering vertically into higher level engineered system solutions and horizontally into the surveillance and communications markets, while strengthening our position in radar systems.

2018 年，我們收購了 Anaren，這將 TTM 的產品組合擴大到高度工程化的射頻組件和子組件，並增加了關鍵的射頻工程能力和資源。 Telephonics 建立在 Anaren 和 TTM 以客戶為導向的文化和嚴謹的工程和製造方法的基礎上，進一步將 TTM 的航空航天和國防產品提供垂直擴展到更高級別的工程系統解決方案並橫向擴展到監視和通信市場，同時加強我們在雷達系統中的地位。

Going forward, the aerospace and defense end market will be approximately 40% of revenues, which will provide growth and stability in a potentially uncertain demand environment for commercial markets. In addition, over 50% of A&D revenues will be from engineered and integrated electronic products with PCBs being less than 50% of the overall contribution. Finally, the transaction will be immediately accretive to EPS.

展望未來，航空和國防終端市場將佔收入的約 40%，這將為商業市場在潛在不確定的需求環境中提供增長和穩定性。此外，超過 50% 的 A&D 收入將來自工程和集成電子產品，其中 PCB 佔總貢獻的比例不到 50%。最後，該交易將立即增加每股收益。

Adding another element of our differentiation strategy, on April 28, we broke ground on a new state-of-the-art, highly automated PCB manufacturing facility in Penang, Malaysia. The decision to build this new factory is a direct response to our customer's increasing concerns about supply chain resiliency and regional diversification, and in particular, the need for advanced multi-layer PCB sourcing options in locations outside of China. The new facility in Malaysia will assist customers in our commercial markets, such as networking and telecom, data center computing and medical, industrial and instrumentation.

4 月 28 日，我們在差異化戰略中加入了另一個元素，我們在馬來西亞檳城新建的最先進、高度自動化的 PCB 製造工廠破土動工。建立這家新工廠的決定是對我們客戶對供應鏈彈性和區域多元化日益關注的直接回應，特別是對中國以外地區先進多層 PCB 採購選擇的需求。馬來西亞的新設施將協助我們商業市場的客戶，例如網絡和電信、數據中心計算和醫療、工業和儀器儀表。

Lastly, I would like to update you on our COVID situation. Earlier this year, COVID-19 impacted our employee base with increased cases in North America. However, this was meaningfully reduced in the second quarter, which contributed to our increased productivity. In Asia Pacific, we saw COVID-related disruptions in one of our smaller facilities in Shanghai, but this was more than offset by stronger growth from our larger facilities in Southern China. We understand COVID cases are growing again in China and North America and we are closely monitoring the situation and will adjust our protocols accordingly.

最後，我想向您介紹我們的 COVID 情況。今年早些時候，COVID-19 影響了我們的員工群，北美病例增加。然而，這在第二季度顯著減少，這有助於我們提高生產力。在亞太地區，我們在上海的一個小型設施中看到了與 COVID 相關的中斷，但這被我們在華南的大型設施的強勁增長所抵消。我們了解中國和北美的 COVID 病例再次增加，我們正在密切關注情況，並將相應調整我們的協議。

Now I'd like to review our end markets, which are referenced on Page 4 of the investor presentation on our website. The aerospace and defense end market represented 30% of total second quarter sales compared to 33% of Q2 2021 sales and 30% of sales in Q1 2022. This market performed better than our expectations and we continue to experience a positive defense climate, with our A&D program backlog at $737 million, excluding Telephonics compared to $671 million a year ago. With Telephonics included, our program backlog is $1.04 billion.

現在我想回顧一下我們網站上投資者介紹的第 4 頁提到的終端市場。航空航天和國防終端市場佔第二季度總銷售額的 30%，而 2021 年第二季度銷售額和 2022 年第一季度銷售額分別為 33% 和 30%。這個市場的表現好於我們的預期，我們繼續經歷積極的國防環境，我們的A&D 項目積壓為 7.37 億美元，不包括電話業務，而一年前為 6.71 億美元。包括電話業務在內，我們的計劃積壓為 10.4 億美元。

The solid demand in our defense market is a result of a positive tailwind in defense budgets and our strong strategic program alignment and key bookings for ongoing franchise programs. During the quarter, we saw significant bookings for several programs, including the Joint Strike Fighter and other space and airborne programs. We expect sales in Q3 from this end market to represent about 39% of our total sales, including a full quarter of Telephonics as the acquisition closed near the end of our second quarter.

我們國防市場的強勁需求是國防預算的積極順風以及我們強大的戰略計劃調整和正在進行的特許經營計劃的關鍵預訂的結果。在本季度，我們看到了幾個項目的大量預訂，包括聯合攻擊戰鬥機和其他太空和空中項目。我們預計第三季度該終端市場的銷售額將占我們總銷售額的 39% 左右，其中包括整個季度的 Telephonics，因為收購在我們第二季度末結束時完成。

The medical, industrial, instrumentation end market contributed 21% of our total sales in the second quarter compared to 19% in the year ago quarter and 21% in the first quarter of 2022. The MI&I market set a new quarterly record, as it was up 27% year-on-year, exceeding $100 million in revenue for the fifth quarter in a row and performing much better than expected with broad-based strength across all segments.

醫療、工業、儀器儀表終端市場在第二季度貢獻了我們總銷售額的 21%，而去年同期為 19%，在 2022 年第一季度為 21%。MI&I 市場創下了新的季度記錄，因為它是同比增長 27%，連續第五個季度收入超過 1 億美元，表現遠好於預期，在所有領域都有廣泛的實力。

For the third quarter, we expect MI&I to be 17% of revenues as the elevated quick-turn business in Q2 normalizes in Q3 and select customers face component shortages. Due to the strength in this market year-to-date, we expect this market will be above the long-term third-party projections of 2% to 4%, which is better than the in line growth rate expectations we had at the start of the year.

對於第三季度，我們預計 MI&I 將佔收入的 17%，因為第二季度的快速轉變業務在第三季度恢復正常，並且部分客戶面臨組件短缺。由於該市場年初至今的強勁勢頭，我們預計該市場將高於第三方長期預測的 2% 至 4%，這好於我們一開始的一致增長率預期年。

Automotive sales represented 18% of total sales during the second quarter of 2022 compared to 18% in the year ago quarter and 20% during the first quarter of 2022. Automotive grew 8.6% year-over-year and exceeded $100 million for the third quarter in a row. We continue to see year-on-year growth for automotive PCBs, despite the combined impact of supply chain and demand disruptions caused by COVID, the Ukraine-Russia conflict and semiconductor shortages that are all impacting automotive OEM production. However, growth rates are moderating somewhat and we expect our automotive PCB business to contribute 16% of total sales in Q3.

2022 年第二季度汽車銷售額佔總銷售額的 18%，而去年同期為 18%，2022 年第一季度為 20%。汽車銷售額同比增長 8.6%，第三季度超過 1 億美元連續。儘管供應鍊和 COVID 造成的需求中斷、烏克蘭-俄羅斯衝突和半導體短缺都影響了汽車 OEM 生產，但我們繼續看到汽車 PCB 的同比增長。然而，增長率有所放緩，我們預計我們的汽車 PCB 業務將在第三季度貢獻總銷售額的 16%。

Sales in the data center computing end market represented 17% of total sales in the second quarter compared to 14% in Q2 of 2021 and 16% in the first quarter of 2022. This end market was up 29% year-on-year, due primarily to growth from our data center customers. We expect revenues in this end market to represent approximately 15% of third quarter sales as strong data center demand continues to drive year-on-year growth.

數據中心計算終端市場的銷售額在第二季度佔總銷售額的 17%，而 2021 年第二季度和 2022 年第一季度分別為 14% 和 16%。該終端市場同比增長 29%，原因是主要來自我們的數據中心客戶的增長。由於強勁的數據中心需求繼續推動同比增長，我們預計該終端市場的收入將佔第三季度銷售額的 15% 左右。

Networking, communications accounted for 14% of revenue during the second quarter of 2022. This compares to 15% in the second quarter of 2021 and 13% of revenue in the first quarter of 2022. We saw relative strength on a year-on-year basis in networking as compared to telecom as we continue to allocate capacity for high layer count boards to our data center computing and networking customers. In Q3, we expect this end market to be 13% of revenue.

網絡、通信佔 2022 年第二季度收入的 14%。相比之下，2021 年第二季度為 15%，2022 年第一季度為 13%。我們看到同比增長相對強勁與電信相比，我們在網絡基礎上繼續為我們的數據中心計算和網絡客戶分配高層計數板的容量。在第三季度，我們預計這個終端市場將佔收入的 13%。

Next I'll cover some details from the second quarter. This information is also available on Page 5 of our earnings presentation. During the quarter, our advanced technology and engineered products business, which includes HDI, rigid flex and RF subsystems and components, accounted for approximately 33% of our revenue. This compares to approximately 31% in the year ago quarter and 33% in Q1. We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology and engineered products capabilities in new programs and new markets.

接下來我將介紹第二季度的一些細節。此信息也可在我們的收益報告的第 5 頁上找到。在本季度，我們的先進技術和工程產品業務（包括 HDI、剛撓性和射頻子系統及組件）約占我們收入的 33%。相比之下，去年同期約為 31%，第一季度約為 33%。我們將繼續尋求新的商業機會並增加客戶設計參與活動，這些活動將利用我們在新項目和新市場中的先進技術和工程產品能力。

Capacity utilization in Asia Pacific was 88% in Q2 compared to 88% in the year ago quarter and 85% in Q1. Our overall capacity utilization in North America was 42% in Q2 compared to 49% in the year ago quarter and 46% in Q1. This lower rate was caused by the additional plating capacity that we have added in North America, bottlenecks in non-plating processes and direct labor shortages in certain regions. Our top five customers contributed 30% of total sales in the second quarter of 2022 compared to 33% in the first quarter of 2022. We had one customer above 10% in the quarter.

第二季度亞太地區的產能利用率為 88%，而去年同期為 88%，第一季度為 85%。第二季度我們在北美的整體產能利用率為 42%，而去年同期為 49%，第一季度為 46%。這種較低的比率是由於我們在北美增加了額外的電鍍產能、非電鍍工藝的瓶頸以及某些地區的直接勞動力短缺。我們的前五名客戶在 2022 年第二季度貢獻了總銷售額的 30%，而在 2022 年第一季度這一比例為 33%。本季度我們有一個客戶的銷售額超過 10%。

At the end of Q2, our 90-day backlog, not including Telephonics, which is subject to cancellations, was $635.7 million compared to $553.1 million at the end of the second quarter last year and $605.3 million at the end of the first quarter. With Telephonics included, our 90-day backlog at the end of Q2 was $703.7 million. Our book-to-bill ratio was 0.89 for the three months ending July 4.

在第二季度末，我們的 90 天積壓訂單（不包括可能被取消的電話業務）為 6.357 億美元，而去年第二季度末為 5.531 億美元，第一季度末為 6.053 億美元。包括電話業務在內，我們在第二季度末的 90 天積壓為 7.037 億美元。截至 7 月 4 日的三個月，我們的訂單出貨比為 0.89。

As we look forward to the fourth quarter and beyond, we will continue to closely monitor global economic influences on our commercial business. To date, we have seen minor impacts as specific customers focus on managing inventories to line up with expected semiconductor chip deliveries. Our backlog continues to be robust however and we expect the aerospace and defense market to provide a strong countercyclical element to our commercial business, if conditions should weaken.

在展望第四季度及以後，我們將繼續密切關注全球經濟對我們商業業務的影響。迄今為止，我們看到的影響很小，因為特定客戶專注於管理庫存以與預期的半導體芯片交付保持一致。然而，我們的積壓訂單繼續強勁，我們預計如果情況減弱，航空航天和國防市場將為我們的商業業務提供強大的逆週期因素。

I'd like to conclude by again highlighting the significant strategic moves that we made in the quarter with the groundbreaking in Malaysia and the completion of the Telephonics acquisition, both of which will further differentiate TTM and our technology solutions. I also want to thank our employees for continuing to contribute to TTM and our critical mission of inspiring innovation for our customers. Our business performed much better than we expected as a direct result of our employees and our supply chain partners' concerted efforts to support TTM and our customers.

最後，我想再次強調我們在本季度所做的重大戰略舉措，包括在馬來西亞的開創性和 Telephonics 收購的完成，這兩者都將進一步區分迅達和我們的技術解決方案。我還要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關鍵使命。由於我們的員工和我們的供應鏈合作夥伴齊心協力支持迅達和我們的客戶，我們的業務表現比我們預期的要好得多。

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

現在托德將審查我們第二季度的財務業績。

Thanks, Tom, and good afternoon, everyone. I apologize if I sound a little congested. I'm getting over a cold and I hope you'll bear with me. Today, I'll be reviewing our financial results for the second quarter that are also shown in the press release distributed today as well as on Slide 6 of our earnings presentation that is posted on our website.

謝謝，湯姆，大家下午好。如果我聽起來有點擁擠，我深表歉意。我感冒了，我希望你能忍受我。今天，我將回顧我們第二季度的財務業績，這些業績也顯示在今天分發的新聞稿以及我們網站上發布的收益演示文稿的幻燈片 6 中。

For the second quarter, net sales were $625.6 million compared to $567.4 million in the second quarter of 2021. The year-over-year increase in revenue was primarily due to strong growth in our commercial markets, particularly data center computing and medical, industrial and instrumentation. GAAP operating income for the second quarter of 2022 was $37.2 million, which included $10.6 million of acquisition-related costs. This compares to $40.9 million in the second quarter of 2021. On a GAAP basis, net income in the second quarter of 2022 was $27.8 million or $0.27 per diluted share. This compares to GAAP net income of $28.3 million or $0.26 per diluted share in the second quarter of last year.

第二季度淨銷售額為 6.256 億美元，而 2021 年第二季度為 5.674 億美元。收入同比增長主要是由於我們的商業市場的強勁增長，特別是數據中心計算和醫療、工業和儀器儀表。 2022 年第二季度的 GAAP 營業收入為 3720 萬美元，其中包括 1060 萬美元的收購相關成本。相比之下，2021 年第二季度為 4090 萬美元。按公認會計原則計算，2022 年第二季度的淨收入為 2780 萬美元或稀釋後每股收益 0.27 美元。相比之下，去年第二季度的 GAAP 淨收入為 2830 萬美元或每股攤薄收益 0.26 美元。

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

我的其餘評論將集中在我們的非公認會計原則財務業績上。我們的非公認會計準則業績不包括與併購相關的成本、重組成本、某些非現金費用項目和其他異常或頻繁項目。我們提供非公認會計準則財務信息，以使投資者能夠通過管理層的眼光看待公司，並便於與預期和前期進行比較。

Gross margin in the second quarter was 20%, the highest level since the divestiture of our Mobility business. This compares to 18% in the second quarter of 2021. The year-on-year increase was due to better pricing and product mix, higher levels of quick-turn business and the fall-through from higher revenues, partially offset by higher year-on-year labor costs, particularly in North America where we had a special wage adjustment earlier in the year to be more competitive as well as higher material costs.

第二季度的毛利率為 20%，是自剝離移動業務以來的最高水平。相比之下，2021 年第二季度為 18%。同比增長是由於更好的定價和產品組合、更高水平的快速周轉業務以及更高收入的下滑，部分被更高的年-同比勞動力成本，特別是在北美，我們在今年早些時候進行了特殊的工資調整，以提高競爭力和更高的材料成本。

Selling and marketing expense was $16.9 million in the second quarter or 2.7% of net sales versus $14.2 million or 2.5% of net sales a year ago. Second quarter G&A expense was $35.4 million or 5.7% of net sales compared to $28.6 million or 5% of net sales in the same quarter last year. In the second quarter of '22, R&D was $5 million or 0.8% of revenues compared to $4.1 million or 0.7% in the year ago quarter.

第二季度的銷售和營銷費用為 1690 萬美元，占淨銷售額的 2.7%，而一年前為 1420 萬美元，占淨銷售額的 2.5%。第二季度的 G&A 費用為 3540 萬美元，占淨銷售額的 5.7%，而去年同期為 2860 萬美元，占淨銷售額的 5%。 22 年第二季度，研發為 500 萬美元或占收入的 0.8%，而去年同期為 410 萬美元或 0.7%。

Our operating margin in Q2 was 10.8%, an outstanding result given the macro challenges we have been dealing with and our highest levels since the divestiture of the Mobility business. This compares to 9.7% in the same quarter last year. Interest expense was $10.2 million in the second quarter compared to $10.5 million in the same quarter last year. During the quarter, there was a positive $6.8 million foreign exchange impact below the operating line.

我們在第二季度的營業利潤率為 10.8%，考慮到我們一直在應對的宏觀挑戰以及自剝離移動業務以來的最高水平，這是一個出色的結果。相比之下，去年同期為 9.7%。第二季度的利息支出為 1020 萬美元，而去年同期為 1050 萬美元。本季度，在運營線以下產生了 680 萬美元的正外匯影響。

Government incentives and interest income increased to $7.6 million or $0.06 of EPS. This compares to a loss of $0.7 million or $0.01 of EPS in Q2 last year. Our effective tax rate was 15% in the second quarter, resulting in a tax expense of $9.8 million. This compares to a rate of 8.7% or tax expense of $3.8 million in the prior year. Second quarter net income was $55.3 million or $0.54 per diluted share. This compares to the second quarter 2021 net income of $40 million or $0.36 per diluted share.

政府獎勵和利息收入增加到 760 萬美元或每股收益 0.06 美元。相比之下，去年第二季度虧損 70 萬美元或每股收益 0.01 美元。我們第二季度的有效稅率為 15%，導致稅收支出為 980 萬美元。相比之下，上一年的稅率為 8.7% 或稅費為 380 萬美元。第二季度淨收入為 5530 萬美元或每股攤薄收益 0.54 美元。相比之下，2021 年第二季度的淨收入為 4000 萬美元或每股攤薄收益 0.36 美元。

Adjusted EBITDA for the second quarter was $96.9 million or 15.5% of revenue compared with second quarter 2021 adjusted EBITDA of $75.6 million or 13.3% of revenue. Depreciation for the quarter was $21.8 million and net capital spending for the quarter was $26.4 million. Adjusted EBITDA for the -- excuse me, cash flow from operations was $79.3 million or 12.7% of revenue, exceeding our target of 10%. Free cash flow was very strong at $52.9 million or 8.5% of revenue.

第二季度調整後 EBITDA 為 9690 萬美元，佔收入的 15.5%，而 2021 年第二季度調整後 EBITDA 為 7560 萬美元，佔收入的 13.3%。本季度折舊為 2180 萬美元，本季度淨資本支出為 2640 萬美元。調整後的 EBITDA——對不起，運營現金流為 7930 萬美元，佔收入的 12.7%，超過了我們 10% 的目標。自由現金流非常強勁，達到 5290 萬美元，佔收入的 8.5%。

During the quarter, we completed our $100 million stock buyback program and acquired Telephonics using cash on hand. After all that, our balance sheet and liquidity positions remained very strong. Cash and cash equivalents at the end of the second quarter of 2022 were $266.5 million. And our net debt divided by the last 12 months' EBITDA was 2.2%, slightly above our target of 2.0%. Our leverage ratio is better than we had expected due to the stronger EBITDA results for the second quarter and the $300 million cash outlay for the Telephonics acquisition was about $30 million less than we had anticipated as a result of working capital adjustments.

在本季度，我們完成了 1 億美元的股票回購計劃，並使用手頭現金收購了 Telephonics。畢竟，我們的資產負債表和流動性狀況仍然非常強勁。 2022 年第二季度末的現金和現金等價物為 2.665 億美元。我們的淨債務除以過去 12 個月的 EBITDA 為 2.2%，略高於我們 2.0% 的目標。由於第二季度的 EBITDA 業績更強勁，我們的槓桿率比我們預期的要好，而且由於營運資金調整，收購 Telephonics 的 3 億美元現金支出比我們預期的少了約 3000 萬美元。

Now I'd like to turn to our guidance for the third quarter. We expect total revenue for the quarter -- third quarter of 2022 to be in the range of $655 million to $695 million. And we expect non-GAAP earnings to be in the range of $0.41 to $0.47 per diluted share. This guidance includes a full quarter of revenue and profit from Telephonics of approximately 69 and $0.04 of EPS respectively.

現在我想談談我們對第三季度的指導。我們預計本季度（2022 年第三季度）的總收入將在 6.55 億美元至 6.95 億美元之間。我們預計非 GAAP 收益將在每股攤薄收益 0.41 美元至 0.47 美元之間。該指引包括 Telephonics 的整個季度收入和利潤分別約為每股收益 69 美元和 0.04 美元。

We expect that pricing actions taken earlier in the year to mitigate labor cost increases will have a positive impact in the quarter, but we also anticipate lower levels of quick-turn business. The EPS forecast is based on a diluted share count of approximately 103 million shares, which includes dilutive securities such as options and stock and restricted stock units. We expect that SG&A expense will be about 8.5% of revenue in the third quarter and R&D to be about 1.1% of revenue. We expect interest expense to total approximately $10.2 million. Finally, we estimate our effective tax rate to be between 13% and 17%.

我們預計，今年早些時候為緩解勞動力成本上漲而採取的定價措施將對本季度產生積極影響，但我們也預計快速轉變業務的水平會降低。每股收益預測基於約 1.03 億股的稀釋後股票數量，其中包括期權、股票和限制性股票單位等稀釋性證券。我們預計 SG&A 費用將佔第三季度收入的 8.5% 左右，研發費用將佔收入的 1.1% 左右。我們預計利息支出總額約為 1020 萬美元。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. During the third quarter, we expect to record amortization of intangibles of about $11.7 million, stock-based compensation expense of about $5.5 million, non-cash interest expense of approximately $0.5 million and we estimate depreciation expense will be approximately $24.5 million.

為了幫助您開發財務模型，我們提供以下附加信息。在第三季度，我們預計無形資產攤銷約為 1170 萬美元，股票補償費用約為 550 萬美元，非現金利息費用約為 50 萬美元，我們估計折舊費用約為 2450 萬美元。

Finally, I'd like to announce that we'll be participating in the Needham Virtual Industrial Tech, Robotics and CleanTech 1x1 Conference on August 8. The Jefferies Industrial Conference on August 10. And the Jefferies Semiconductors IT Hardware and Communications Infrastructure Summit on August 30.

最後，我想宣布，我們將參加 8 月 8 日的 Needham 虛擬工業技術、機器人和清潔技術 1x1 會議。8 月 10 日的 Jefferies 工業會議。以及 8 月的 Jefferies Semiconductors IT 硬件和通信基礎設施峰會30.

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

我們準備好的發言到此結束。現在我想打開電話提問。

(Operator Instructions) And we'll first hear from Matt Sheerin of Stifel.

（操作員說明）我們將首先聽取 Stifel 的 Matt Sheerin 的來信。

Tom, I was hoping you can give us a little bit more color on some of the end markets. It looks like you had a pretty strong growth in most of the sectors, but you are calling for auto to be down again quarter-on-quarter. And I'm wondering, what you're seeing some other suppliers. And I know that you're sort of at a different spot in the supply chain than maybe the semiconductor guys, but there's expectations of growth over the next couple of quarters just on production and content. So I wanted to get your read on that? And then also, just on the quick-turn business, could you remind us how big revenue it is as a percentage of sales? And then why are you seeing a slowdown or why did you see a pick-up in the quarter?

湯姆，我希望你能給我們一些終端市場更多的色彩。看起來你在大多數行業都有相當強勁的增長，但你要求汽車再次環比下降。我想知道，你看到其他供應商是什麼。而且我知道你在供應鏈中的位置可能與半導體公司不同，但預計未來幾個季度的增長僅取決於生產和內容。所以我想讓你讀一下？然後，就快速轉型業務而言，您能否提醒我們其收入佔銷售額的百分比有多大？那麼為什麼你會看到經濟放緩，或者為什麼你看到本季度有所回升？

So yeah, let me start with the automotive situation. And so overall, obviously, as you pointed out, we had a terrific quarter, a very strong quarter pretty much across the board, and particularly, if you look at those year-on-year growth rates. If we're to talk specifically on automotive, sequentially, yes, down looking at about down 6% or so in our forecast versus -- but we are up in our forecast year-on-year, again about 6%.

所以，是的，讓我從汽車的情況開始。所以總的來說，顯然，正如你所指出的，我們有一個非常棒的季度，一個非常強勁的季度幾乎全面，特別是如果你看看這些同比增長率。如果我們要專門討論汽車，那麼，是的，我們的預測相對於下降約 6% 左右，但我們的預測同比上升，再次上升約 6%。

So if you parcel out what's going on there, part of it is automotive customers and summer shutdowns that particularly impacts Europe and inventory pull plans in Europe. I do think we're seeing a bit of the semiconductor shortage impact. In other words, customers adjusting inventory levels waiting to see when the chips arrive and then at that point, pulling inventory when -- as those chips come in. So you're right to point out, there is a difference there in terms of how our situation versus others. Overall, automotive continues to be a strong market.

因此，如果您將那裡發生的事情分門別類，其中一部分是汽車客戶和夏季停工，這特別影響歐洲和歐洲的庫存拉動計劃。我確實認為我們看到了一些半導體短缺的影響。換句話說，客戶調整庫存水平等著看芯片什麼時候到貨，然後在這些芯片進來時拉動庫存。所以你說得對，在如何處理方面存在差異我們與其他人的情況。總體而言，汽車仍然是一個強勁的市場。

When it comes to quick-turn and what we're seeing in premiums, we look at this just in terms of it's primarily North America, but we did see some premium activity in Asia Pacific. The activity crosses the board, but particularly critical to MII customers. And you can see, that's really tied to the need for customers as they develop new products to pull prototyping support and other activities related to development.

當談到快速轉變和我們在保費中看到的情況時，我們只是從主要是北美的角度來看待這一點，但我們確實在亞太地區看到了一些保費活動。這項活動是全面的，但對 MII 客戶尤其重要。您可以看到，這與客戶在開發新產品以獲取原型支持和其他與開發相關的活動時的需求密切相關。

So as we come into the third quarter, again, what we're expecting here is more of a normal pace between premium and quick-turn versus, I would call, normal levels of quick-turn. And that's what we're expecting. We'll see how the quarter develops. As the market start to calm down a bit, that's one factor here. And the other again is just with the summer, you tend to get a little bit less prototyping activity. So again, we'd rather than talk about percentage versus revenue, I think you can look at this as being an unusually heightened quarter and what we're seeing as normalized.

因此，當我們再次進入第三季度時，我們在這裡所期望的更多是溢價和快速轉向之間的正常步伐，而不是我認為的正常水平的快速轉向。這就是我們所期待的。我們將看到本季度的發展情況。隨著市場開始平靜下來，這是這裡的一個因素。另一個就是夏天，你的原型製作活動往往會少一些。再說一次，我們不想談論百分比與收入，我認為您可以將其視為一個異常高的季度，並且我們將其視為正常化。

I don't know, Todd, if you got the numbers at your fingers here in terms of percentage?

我不知道，托德，你是否掌握了這裡的百分比數字？

Traditionally, we run on a global basis -- and this will vary between North America and Asia Pacific, as Tom alluded to in his comments. But we typically run around 9%. But what we saw is that was more muted in 2021. And then in the last couple of quarters, it's been much, much stronger. As Tom mentioned, a big portion of that is tied to prototyping activity, but another portion is tied to leadx. And as demand was really accelerating, lead times were extending, people were mixing and matching and accelerating orders or looking for expedited production to better match their supply chain as things -- as parts were coming in. So we definitely saw more of that.

傳統上，我們在全球範圍內運營——正如湯姆在評論中提到的那樣，北美和亞太地區的情況會有所不同。但我們通常運行在 9% 左右。但我們看到的是，2021 年的情況更加平靜。然後在最後幾個季度，它變得更加強大。正如 Tom 所提到的，其中很大一部分與原型設計活動有關，但另一部分與 Leadx 有關。隨著需求的真正加速，交貨時間在延長，人們正在混合和匹配並加速訂單或尋求加快生產以更好地匹配他們的供應鏈 - 隨著零件的進入。所以我們肯定看到了更多這樣的事情。

And as lead times are coming back down, we would expect to see less of that type. The prototyping activity is more consistent, notwithstanding Tom's comment about seasonality in the summer time, which is right on spot, but it's more consistent longer term. But the lead time component that was driving some of our heightened activity is expected to subside gradually here as we go through the rest of the year.

隨著交貨時間的縮短，我們預計這種類型的情況會減少。原型製作活動更加一致，儘管湯姆對夏季的季節性發表了評論，這是正確的，但從長遠來看更一致。但是，隨著我們在今年餘下的時間裡，推動我們的一些活動增加的交貨時間部分預計將逐漸消退。

And then on the gross margin, I understand why it will be down sequentially, but it still sounds like just backing into that number. Based on the OpEx number you gave us, it still looks like it will still be well above 18%. And as you go forward, given the Telephonics acquisition, are there any cost synergies that you see either on the impacting gross margin or OpEx over the next few quarters or really was that just obviously acquiring that company for the technology and the product set?

然後在毛利率上，我理解為什麼它會依次下降，但聽起來仍然像是回到那個數字。根據您提供給我們的 OpEx 數字，它看起來仍將遠高於 18%。隨著您繼續前進，考慮到 Telephonics 的收購，您是否看到任何成本協同效應會影響未來幾個季度的毛利率或運營支出，或者是否真的只是為了技術和產品集而收購該公司？

Well, we've been pretty public, Matt, about our synergy expectations. We're looking for -- we've identified preliminarily $12 million of synergies that we hope to be able to get through efficiencies here over the next -- by the end of 2024. A lot of that's going to be cost of goods sold, both materials as well as infrastructure, and certainly, OpEx will be impacted that way also. So we will see improvements in their margins. We've talked about how their margins are a little less than ours on average right now, but we expect them to be above our legacy margins here once we implement the synergies that we've identified.

好吧，馬特，我們對我們的協同效應期望非常公開。我們正在尋找——我們已經初步確定了 1200 萬美元的協同效應，我們希望能夠在接下來的 2024 年底之前提高效率。其中很大一部分將是銷售成本，材料和基礎設施，當然，運營支出也會受到影響。因此，我們將看到他們的利潤率有所提高。我們已經討論過他們現在的平均利潤率如何略低於我們的平均水平，但是一旦我們實施我們已經確定的協同效應，我們預計它們將高於我們的傳統利潤率。

Next we'll hear from Mike Crawford of B. Riley Securities.

接下來我們將聽取 B. Riley Securities 的 Mike Crawford 的來信。

I'm pleasantly surprised you're seeing these tailwinds when others particularly are sitting decommits and material not coming in, particularly on semiconductor side. Is there something in particular you knew what your clients are doing that manage that process better than others?

我很高興你看到這些順風，當其他人特別是坐在退役和材料沒有進來時，特別是在半導體方面。您是否特別了解您的客戶在做什麼，從而比其他人更好地管理該流程？

Well, so I think, Mike, it's -- and Todd, we both commented on the work that we've been doing in terms of meeting customer accelerated demand. And a lot of this -- I have to say two big factors, at least as I look at it. One, how responsive our teams are in Asia Pacific as well as in North America, and that takes the full organization. That's the sales team upfront working with our customers, understanding their needs. And then it's really operations responding, responding to make room for products, responding as customers deal with these semiconductor chips arriving out of the blue and then the need to fulfill a program. So you have to be -- I think our team has been agile in responding, and all credit to them.

好吧，所以我認為，邁克，這是 - 和托德，我們都評論了我們在滿足客戶加速需求方面所做的工作。其中很多——我不得不說兩個重要因素，至少在我看來。一，我們的團隊在亞太地區和北美的響應速度如何，這需要整個組織。這就是銷售團隊在前期與我們的客戶合作，了解他們的需求。然後是真正的運營響應，響應為產品騰出空間，響應客戶處理這些突然到來的半導體芯片，然後需要完成一個程序。所以你必須——我認為我們的團隊在響應方面一直很敏捷，這一切都歸功於他們。

I'd also like to highlight, in North America, we continue to have a challenged labor environment, but our human resources group and operations were able to staff a number of our critical facilities and bring in labor. We still have opportunity to do even better there. We still have North America production for us from a percentage of revenue, about 42% in this last quarter. That's relatively consistent to past quarters. So we still have work to do here as we bring in labor. But definitely, productivity improvements in North America also helping to drive those results. So again, those are the things I would highlight for you, just aligning with customers and meeting that demand profile as it changes.

我還想強調，在北美，我們繼續面臨充滿挑戰的勞動力環境，但我們的人力資源團隊和運營部門能夠為我們的一些關鍵設施配備人員並引進勞動力。我們仍然有機會在那裡做得更好。我們仍然有一定比例的收入為我們在北美生產，上一季度約為 42%。這與過去幾個季度相對一致。因此，當我們引進勞動力時，我們還有工作要做。但毫無疑問，北美的生產力提高也有助於推動這些結果。再說一次，這些是我要為您強調的事情，只是與客戶保持一致並隨著需求的變化而滿足需求。

From a direct semiconductor impact on TTM, there's the Telephonics business as we bring it in, certainly more exposed on the semiconductor side. But TTM, even in our integrated product and subassembly work that we do. We do have chipsets involved there, but it's not an overwhelming number of chipsets and our supply chain team has done a good job of lining up deliveries as needed.

從半導體對 TTM 的直接影響來看，我們引入的電話業務當然更多地暴露在半導體方面。但是 TTM，即使在我們所做的集成產品和子裝配工作中也是如此。我們確實有芯片組參與其中，但芯片組的數量並不多，我們的供應鏈團隊在根據需要安排交付方面做得很好。

And then just one other question on the differentiation front. Part of that is, could you comment on the design wins and activity in automotive, but then more broadly talk about your [outlook] to get involved with earlier engineering and design work on the automotive side similar to what you're doing with some of your defense customers?

然後是關於差異化方面的另一個問題。其中一部分是，您能否評論一下汽車的設計勝利和活動，然後更廣泛地談論您的 [前景] 以參與汽車方面的早期工程和設計工作，類似於您正在做的一些你的國防客戶？

So specific to automotive, this was what I would call, it's interesting. I think as the markets have shifted, our customers have been a bit hesitant to put out big bidding packages, probably because they're waiting for the situation to clarify in terms of their own product build plans. That's my hypothesis at any rate. So wins were down a little bit. We had a total program value. We won about 13 design program value total of about $60 million. As I mentioned, that is certainly down year-on-year. A year ago, we were about twice that, about $122 million. But what I put that to again is just in the state of the economy with product changes planned, our customers are -- they've been hesitating to put out those packages. I expect that pace of opportunity set to increase pretty dramatically here as we go through the balance of the year.

如此具體到汽車，這就是我所說的，這很有趣。我認為隨著市場的變化，我們的客戶對於推出大型招標包有點猶豫，可能是因為他們正在等待情況在他們自己的產品構建計劃方面得到澄清。無論如何，這是我的假設。所以勝率略有下降。我們有一個總的計劃價值。我們贏得了約 13 個設計項目，總價值約 6000 萬美元。正如我所提到的，這肯定是同比下降。一年前，我們大約是這個數字的兩倍，大約 1.22 億美元。但我再次提到的只是處於計劃產品變更的經濟狀態，我們的客戶 - 他們一直在猶豫是否推出這些包裹。我預計隨著我們度過今年的剩餘時間，這種機會的步伐將在這里大幅增加。

From an engagement standpoint, absolutely right. One of the major shifts in automotive that has -- that we identified several years ago is the growing involvement of OEMs in the design and process. And not that the -- the Tier 1s are still the most significant customers for TTM, but we are finding more and more involvement from the OEM side. And so our engagements have deepened with the engineering side of the OEMs and particularly true when it comes to RF and the ADAS systems that really are becoming now sort of required in vehicles, and that involvement from an engineering standpoint starts early.

從參與的角度來看，絕對正確。我們幾年前發現的汽車領域的重大轉變之一是原始設備製造商越來越多地參與設計和流程。並不是說——Tier 1 仍然是 TTM 最重要的客戶，但我們發現 OEM 方面的參與越來越多。因此，我們與原始設備製造商的工程方面的合作加深了，尤其是在射頻和 ADAS 系統方面，這些系統現在已經真正成為車輛所必需的，而且從工程的角度來看，這種參與很早就開始了。

I'd also highlight that our RF and Specialty Components Group, which we brought in with Anaren, has been critical to those engagements. The RF expertise that they bring to the game, the focus on module solutions with our customers has allowed us to deepen that engineering engagement again with both Tier 1s and OEMs.

我還要強調的是，我們與 Anaren 一起引進的射頻和特種組件小組對這些合作至關重要。他們為遊戲帶來的射頻專業知識，以及與客戶對模塊解決方案的關注，使我們能夠再次加深與一級供應商和原始設備製造商的工程合作。

And finally, I'd just highlight, with the EV companies coming in, often in their case, they start directly working with TTM and with that engineering engagement and have -- and plan, in most cases, to vertically integrate or even if they do decide to use an assembly service, they first want to get the design right. And so a lot of our engagement now is with those EVs companies as well and we're growing with them. So hopefully, that gives you a feel for how the landscape has shifted here over the last few years.

最後，我要強調的是，隨著電動汽車公司的加入，通常在他們的情況下，他們開始直接與 TTM 合作並進行工程參與，並且在大多數情況下，計劃進行垂直整合，或者即使他們決定使用組裝服務時，他們首先要獲得正確的設計。因此，我們現在的很多業務都與這些電動汽車公司合作，我們正在與他們一起成長。因此，希望這能讓您了解過去幾年這裡的景觀是如何變化的。

Next we'll hear from Jim Ricchiuti of Needham & Company.

接下來，我們將聽取 Needham & Company 的 Jim Ricchiuti 的來信。

I wanted to again go back to that quick-turn business which was significantly higher. I don't recall you guys haven't an instance where you called that out, that kind of strength, at least in recent quarters. And my question is, I'm wondering if you can give us any sense as to how much of a lift that might have given your gross margins in the quarter?

我想再次回到那個明顯更高的快速轉變業務。我不記得你們至少在最近幾個季度沒有提到過這種力量的例子。我的問題是，我想知道你能否告訴我們本季度的毛利率有多大提升？

Well, it's a significant lift. I mean, that's essentially a price increase. And so we have an ongoing relatively consistent level of activity there and the incremental activity that came in, in the last couple of quarters has been pretty substantial. And what came in in Q2 was more than we had expected. We had expected to see some reversion to the mean, if you will, on our history. And again, we're expecting that in Q3, but we were surprised to the upside in Q2, and that gave us a little bit of extra lift. But if you look and think about all the -- we listed it was a more complicated list of explanation for our improved gross margin this quarter than we normally have. But revenue-related items, both volume, mix and pricing and premium all factored in very significantly for the quarter and more than offset the increased material costs and labor costs that we had been witnessing over the last few quarters and that really drove the upside. And it was more so pricing and premium than it was volume.

嗯，這是一個顯著的提升。我的意思是，這本質上是價格上漲。因此，我們在那裡有一個持續的相對一致的活動水平，並且在過去幾個季度中出現的增量活動非常可觀。第二季度的收入超出了我們的預期。如果你願意的話，我們曾期望在我們的歷史上看到一些平均值的回歸。同樣，我們預計第三季度會出現這種情況，但我們對第二季度的上漲感到驚訝，這給了我們一點額外的動力。但是，如果您仔細考慮所有這些-我們列出了對本季度毛利率提高的解釋比通常情況更複雜的列表。但與收入相關的項目，包括數量、組合、定價和溢價，在本季度都非常重要，足以抵消我們在過去幾個季度看到的材料成本和勞動力成本的增加，這確實推動了上漲。與數量相比，定價和溢價更重要。

And I'm wondering if there's any read through on the PCB book-to-bill being below 1? And Tom, you kind of very quickly alluded to some minor impacts where you're seeing some signs of change in demand. Obviously, we're all looking for any indications that business may start to weaken. So I was just wondering if you could elaborate on that?

我想知道PCB book-to-bill是否低於1？湯姆，你很快就提到了一些輕微的影響，你看到了一些需求變化的跡象。顯然，我們都在尋找任何跡象表明業務可能開始走弱。所以我只是想知道你是否可以詳細說明一下？

So if you look at the overall book-to-bill, biggest factor, Jim, which is related to bookings on the commercial side coming back to more normalized levels is the fact that we were able to reduce lead times in our plans. And as we reduce lead times -- they're still elevated by the way. But as they've now come down, when the lead times come down, that allows the customers to hold off on orders.

因此，如果您查看整體訂單到賬單，最大的因素是吉姆，這與商業方面的預訂恢復到更正常的水平有關，是我們能夠減少計劃中的交貨時間。隨著我們縮短交貨時間——順便說一句，它們仍然在提高。但是隨著他們現在下降，當交貨時間下降時，這使得客戶可以推遲訂單。

And so really what Todd was talking about with quick-turn where if you've got your lead time stretching and the need to get inside those lead times demand more quick-turn premium work, in this case, as things started to normalize in the commercial business, we did start making lead time adjustments. Again, still elevated, but we started making lead time adjustments. That was the single biggest factor.

所以托德所說的快速周轉真的是，如果你的交貨時間延長並且需要進入這些交貨時間，就需要更多的快速周轉優質工作，在這種情況下，隨著事情開始正常化商業業務，我們確實開始調整交貨時間。同樣，仍然很高，但我們開始調整交貨時間。這是最大的一個因素。

Secondly, there are particular customers, and I would highlight in the computing area and networking area where for individual programs, they were seeing semiconductor -- with semiconductor issues, they were adjusting inventory. And so inventory adjustments is sort of a secondary factor.

其次，有一些特殊的客戶，我要強調的是計算領域和網絡領域，對於個別項目，他們看到了半導體——由於半導體問題，他們正在調整庫存。因此，庫存調整是次要因素。

And then thirdly, really on the bookings side, we had a lower quarter for A&D bookings -- we're actually -- those bookings shifted into this upcoming quarter. So we should actually see a very strong bookings quarter in the third quarter. But those shifts also contributed on the bookings side. So those are the three big factors.

第三，真正在預訂方面，我們的 A&D 預訂季度較低——我們實際上是——這些預訂轉移到了即將到來的這個季度。所以我們實際上應該在第三季度看到一個非常強勁的預訂季度。但這些轉變也有助於預訂方面。所以這是三大因素。

Congrats on the quarter and on closing Telephonics.

祝賀本季度和關閉 Telephonics。

(Operator Instructions) Next we'll hear from William Stein of Truist Securities.

（操作員說明）接下來，我們將聽取 Truist Securities 的 William Stein 的發言。

Guys, congratulations on these very strong results, especially the margins. First, I'm hoping you can talk to us a little bit about how ramping of capacity and production in the India facility might influence your gross margins if that's going to have a meaningful impact?

伙計們，祝賀這些非常強勁的結果，尤其是利潤。首先，我希望你能和我們談談印度工廠的產能和產量的增加會如何影響你的毛利率，如果這會產生有意義的影響？

I think, Todd, you can answer that. Malaysia facility.

我想，托德，你可以回答這個問題。馬來西亞工廠。

Right, in Malaysia. Yeah, it's going to be negligible. I mean, it won't really have any impact this year. Next year, as we begin to add some infrastructure costs and bring on -- start to bring on leadership and mid-year start to bring on employees, it will have a drag. We haven't updated a lot of those numbers from when we gave our initial announcement. And I'd have to get that to you when we'd probably get closer to it because we really haven't offered any insight to 2023 yet. But we would expect some negative impact as we ramp in '23.

對了，在馬來西亞。是的，這將是微不足道的。我的意思是，今年不會有任何影響。明年，隨著我們開始增加一些基礎設施成本並引入——開始引入領導層，年中開始引入員工，這將產生拖累。從我們最初發佈公告時開始，我們還沒有更新很多這些數字。當我們可能更接近它時，我必須把它告訴你，因為我們真的還沒有提供任何關於 2023 年的見解。但是，隨著我們在 23 年的增長，我們預計會產生一些負面影響。

We won't hit what we would call kind of normal run rate margins until late '24 probably. We'll be ramping all the way during '24. And we expect to be at full steam by the end of '24, early '25. So the margins will trail a little bit because you've got to bring on people and train them before you can actually build product. And that will certainly be a headwind for that ramp up, but we're expecting to hit normalized margins kind of in that timeframe, late '24 or early '25.

我們可能要到 24 年末才能達到我們所說的正常運行率利潤率。我們將在 24 年期間一路攀升。我們預計到 24 年底、25 年初將全速前進。因此，利潤率會有所下降，因為您必須先招募人員並培訓他們，然後才能真正構建產品。這肯定會成為這種增長的逆風，但我們預計在 24 年末或 25 年初的那個時間範圍內會達到標準化利潤率。

So no, I just wanted to highlight. One of the basis -- really the basis for this facility was the fact that we had customers lined up and we have customers that have now committed to TTM in the form of long-term agreements. And that provides -- as you start thinking about margin, that provides us the assurance on the sales side and the revenue side and the product mix that we can then drive into the facility. So that's going to help to shorten that ramp time, Will, as we bring on the facility. It's great to have the baseload assurance.

所以不，我只是想強調一下。其中一個基礎——這個設施的真正基礎是我們有客戶排隊，我們的客戶現在已經以長期協議的形式承諾使用 TTM。這提供了——當你開始考慮利潤時，這為我們提供了銷售方面和收入方面的保證，以及我們可以進入工廠的產品組合。所以這將有助於縮短斜坡時間，Will，因為我們帶來了設施。有基本負載保證真是太好了。

The follow-up is -- it relates to the CHIPS Act. I'm well aware you're not a semiconductor device company, but I wonder if that -- there's probably a secondary influence on your business. But I wonder if there's any potential for primary direct effect on your business?

後續行動是——它與 CHIPS 法案有關。我很清楚你不是一家半導體設備公司，但我想知道這是否——這可能對你的業務有次要影響。但我想知道是否有可能對您的業務產生主要的直接影響？

I mean, we've certainly been a supporter of this. We through the IPC and the PCB Association of America have been supporting these efforts and also reminding Congress that as we put a chips don't float, that chips are part of a broader electronics ecosystem. That's been a very consistent message. We're thrilled to see that -- you're right, Will, it's not a direct impact in terms of the larger portion of the funding. It will help our customers and semiconductor customers are critical to us.

我的意思是，我們當然一直是這方面的支持者。我們通過 IPC 和美國 PCB 協會一直在支持這些努力，並提醒國會，當我們讓芯片不會浮動時，芯片是更廣泛的電子生態系統的一部分。這是一個非常一致的信息。我們很高興看到這一點——你是對的，威爾，就大部分資金而言，這不是直接影響。它將幫助我們的客戶和半導體客戶對我們至關重要。

We do test and burn in-board production. So going to be some interesting developments, I'm sure, from a demand standpoint there. But directly, we're also really thrilled to see the $2.5 billion that was earmarked for microelectronics. We have our own microelectronics business out of Syracuse, that's about a $50 million a year business. But then broader than that, microelectronics and advanced packaging tied to that broader ecosystem.

我們做測試和燒錄板載生產。我敢肯定，從需求的角度來看，這將是一些有趣的發展。但直接而言，我們也很高興看到專門用於微電子的 25 億美元。我們在 Syracuse 有自己的微電子業務，每年大約有 5000 萬美元的業務。但比這更廣泛的是，微電子和先進封裝與更廣泛的生態系統相關聯。

So we'll certainly be working with customers as we look at infrastructure, potential infrastructure needs for both microelectronics and some of the more advanced printed circuit board technologies here as we work with our customers. So excited to see that. We're certainly going to remain involved with consortia as well as with the associations to make sure that the proper support is provided. But I think it's good to see. It's good to see the investment in the infrastructure here in North America.

因此，當我們與客戶合作時，我們肯定會與客戶一起研究基礎設施、微電子和一些更先進的印刷電路板技術的潛在基礎設施需求。很高興看到這一點。我們肯定會繼續參與財團和協會，以確保提供適當的支持。但我覺得很高興看到。很高興看到北美對基礎設施的投資。

And it appears there are no further questions at this time. I'll turn the call back over to Tom for any additional or closing comments.

目前似乎沒有進一步的問題。我會將電話轉回給湯姆，以獲取任何其他或結束的評論。

Great. Thank you. Thanks, April. I'd like to just close by summarizing some of the points I made earlier. First, we delivered revenues and earnings above the high end of guidance. And the fact that we've seen many of the cost headwinds of the past year really turn into tailwinds in this past quarter. Second, our end market diversification really enabled solid year-on-year revenue growth of 10.3%. Third, we generated strong cash flow. And fourth, we took important steps in advancing our strategy of differentiation with the acquisition of Telephonics and the breaking ground of our new facility in Penang, Malaysia. In closing, I'd really just like to thank our employees, our customers and our investors for your continued support. Thank you very much.

偉大的。謝謝你。謝謝，四月。最後，我想總結一下我之前提出的一些觀點。首先，我們的收入和收益高於指引的高端。事實上，我們已經看到過去一年的許多成本逆風在上個季度真正變成了順風。其次，我們的終端市場多元化確實實現了 10.3% 的穩健收入同比增長。第三，我們產生了強勁的現金流。第四，我們通過收購 Telephonics 和我們在馬來西亞檳城的新工廠破土動工，在推進差異化戰略方面採取了重要步驟。最後，我真的要感謝我們的員工、客戶和投資者的持續支持。非常感謝。

That does conclude today's conference. Thank you all for your participation. You may now disconnect.

今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。