TTM Technologies Inc (TTMI) 2022 Q3 法說會逐字稿

Thanks for everyone's patience. So we're going to start the call now. I've got Tom Edman with me and Todd Chile as well. So let me just read the safe harbor statement before we get started. So before we get started, I want to remind everyone that today's call state forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook.

謝謝大家的耐心。所以我們現在開始通話。我有湯姆埃德曼和托德智利。因此，在我們開始之前，讓我先閱讀安全港聲明。所以在我們開始之前，我想提醒大家，今天的通話狀態屬於 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。

Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the factors explained in our more recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. These forward-looking statements are based on management's expectations and assumptions as of the date of this presentation. TTM does not undertake any obligation to publicly update or revise any of these statements, whether as a result of new information, future events or other circumstances, except as required by law.

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。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。

Please refer to disclosures regarding the risks that may affect TTM, which may be found in the other reports on Forms 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the other company's SEC filings. 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 measures prepared and presented in accordance with GAAP, and we will direct you to the reconciliation of non-GAAP to GAAP measures included in the company's press release, which was filed with the SEC available on TTM's website at www.ttm.com. We've all posted -- also posted on the website a slide deck that we'll refer to during the call. I will now turn the call over to Tom Edman, TTM's Chief Executive Officer. Please go ahead, Tom.

請參閱有關可能影響 TTM 的風險的披露，這些披露可在 10-K、10-Q、8-K 表格的其他報告、S-4 表格的註冊聲明和其他公司的 SEC 文件中找到。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，我們將指導您對公司新聞稿中包含的非 GAAP 與 GAAP 措施進行核對，該新聞稿已提交給美國證券交易委員會，可在 TTM 的網站 www.ttm.com。我們都發布了——還在網站上發布了一個幻燈片，我們將在電話會議期間參考。我現在將把電話轉給迅達的首席執行官湯姆埃德曼。請繼續，湯姆。

Thank you, Sameer, and let's just make sure we're recording as well. I do want to apologize again on behalf of the company for the issues we had with this call. Unfortunately, it appears that the service provider for these calls was acquired and did not inform us of that change or the -- and did not set up the call. So my apologies for this. I hope you will bear with us here, and we'll do the best we can to respond to questions at the end of the call. So with that, let me just get started.

謝謝你，Sameer，讓我們確保我們也在錄製。我確實想代表公司就我們在這次電話中遇到的問題再次道歉。不幸的是，這些呼叫的服務提供商似乎已被收購，並且沒有通知我們該更改或 - 並且沒有建立呼叫。所以我為此道歉。我希望你能在這裡忍受我們，我們將盡我們所能在電話結束時回答問題。因此，讓我開始吧。

Good afternoon to all, and thank you for joining us for our third quarter fiscal year 2022 conference call. I'll begin with a review of our business highlights from the quarter and a discussion of our third quarter results, followed by a summary of our business strategy. Todd Schull, our CFO, will follow with an overview of our Q3 2022 financial performance and our Q4 2022 guidance. We will then open the call to your questions.

大家下午好，感謝您加入我們的 2022 財年第三季度電話會議。我將首先回顧我們本季度的業務亮點並討論我們的第三季度業績，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 年第三季度的財務業績和 2022 年第四季度的指導。然後，我們將打開您的問題的電話。

The quarter's highlights are also shown on Slide 3 of the investor presentation posted on TTM's website. In the third quarter of 2022, TTM delivered a solid quarter with revenues in line with the guided range 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. While the results include the first -- include the first full quarter of Telephonics, I do want to call out that the rest of the company saw revenues grow 8.3% year-on-year, driven by broad-based growth across all end markets. On a year-on-year basis, we saw a significant improvement in our profit margins in Q3 from better product mix, higher pricing and premium revenue. Also the addition of Telephonics and favorable foreign exchange rates as the Chinese RMB weakened further against the dollar.

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。在 2022 年第三季度，儘管供應鍊和勞動力環境充滿挑戰，以及 COVID-19 對疫情的持續影響，迅達實現了穩健的季度，收入符合指導範圍，非 GAAP 每股收益高於指導上限我們的業務。雖然結果包括第一個 - 包括 Telephonics 的第一個完整季度，但我確實想指出，在所有終端市場廣泛增長的推動下，公司其他部門的收入同比增長 8.3%。與去年同期相比，由於更好的產品組合、更高的定價和溢價收入，我們在第三季度看到了我們的利潤率顯著提高。此外，隨著人民幣兌美元進一步走弱，電話服務的增加和有利的外匯匯率。

I am proud of our employees for delivering solid results this quarter. As we look into Q4, inventory adjustments and supply challenges tied to some of our commercial customers are contributing to revenue and margin declines, but we will continue to see our business supported by our diverse end market mix, including our A&D business, which, with the addition of Telephonics, now represents almost 40% of our revenues. 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.

我為我們的員工在本季度取得了可觀的業績感到自豪。在我們展望第四季度時，與我們的一些商業客戶相關的庫存調整和供應挑戰正在導致收入和利潤率下降，但我們將繼續看到我們的業務受到多元化終端市場組合的支持，包括我們的 A&D 業務，其中Telephonics 的加入，現在占我們收入的近 40%。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。

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. 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.

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。 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。

The aerospace and defense end market will provide growth and stability in a potentially challenging 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. Telephonics demonstrated strong performance in their first quarter with TTM, and integration is well underway. Adding another element of our differentiation strategy is the current construction of 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 customers' increasing concerns about supply chain resiliency and regional diversification and in particular, the need for advanced multilayer PCB sourcing options in locations outside of China.

航空航天和國防終端市場將在商業市場具有潛在挑戰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%。 Telephonics 在第一季度與 TTM 的合作表現強勁，整合正在進行中。我們差異化戰略的另一個元素是目前在馬來西亞檳城建設的新的最先進、高度自動化的 PCB 製造工廠。建立這家新工廠的決定直接回應了我們的客戶對供應鏈彈性和區域多元化日益增長的擔憂，特別是對中國以外地區先進多層 PCB 採購選擇的需求。

The new facility in Malaysia will assist customers in our commercial markets, such as networking telecom, data center computing and medical, industrial and instrumentation. We made great progress on the Malaysian facility this past quarter as we completed the 3,900 filings required for the building, laid the majority of the foundation and began raising the steel framework. We also received multiple deposits from customers with whom we have signed long-term agreements, which provide a business base for over 60% of the planned new capacity in the building. Recent news on increasing export controls to Chinese companies reaffirms our view of the importance of regionally diversifying for our customers' supply chain resiliency needs.

馬來西亞的新設施將協助我們商業市場的客戶，例如網絡電信、數據中心計算以及醫療、工業和儀器儀表。上個季度，我們在馬來西亞工廠取得了很大進展，完成了建築所需的 3,900 份申請，奠定了大部分基礎並開始提升鋼框架。我們還收到了與我們簽訂了長期協議的客戶的多筆存款，這些協議為大樓中超過 60% 的計劃新產能提供了業務基礎。最近有關加強對中國公司出口管制的消息再次證實了我們對區域多元化對客戶供應鏈彈性需求的重要性的看法。

Finally, I'd like to say a few words about the overall macro environment. We are aware and understand the investor concerns of an economic slowdown and potential recession, which would mostly impact our commercial business. We will continue to closely monitor global economic influences on our commercial business. We have seen a booking slowdown in parts of our commercial business as some customers focus on managing inventories, while others continue to struggle with supply chain challenges. Our backlog continues to be robust, however, and we expect the aerospace and defense market to provide strong countercyclical element to our commercial business if conditions weaken further.

最後，我想對整個宏觀環境說幾句話。我們了解並理解投資者對經濟放緩和潛在衰退的擔憂，這將主要影響我們的商業業務。我們將繼續密切關注全球經濟對我們商業業務的影響。我們看到部分商業業務的預訂放緩，因為一些客戶專注於管理庫存，而另一些客戶則繼續與供應鏈挑戰作鬥爭。然而，我們的積壓訂單繼續強勁，我們預計如果情況進一步減弱，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。

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 38% of total third quarter sales compared to 31% of Q3 2021 sales and 30% of sales in Q2 2022. The majority of the year-on-year growth was due to the inclusion of Telephonics. Excluding that impact, our A&D revenues grew 7.0% year-on-year. We continue to experience a positive defense climate, with our A&D program backlog at $1.16 billion, including Telephonics. Excluding Telephonics, program backlog was $871 million compared to $723 million a year ago.

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。航空和國防終端市場佔第三季度總銷售額的 38%，而 2021 年第三季度銷售額和 2022 年第二季度銷售額分別為 31% 和 30%。同比增長的大部分是由於電話業務的加入。排除這種影響，我們的 A&D 收入同比增長 7.0%。我們繼續體驗積極的防御氣氛，我們的 A&D 項目積壓為 11.6 億美元，包括電話業務。不包括電話業務，項目積壓為 8.71 億美元，而一年前為 7.23 億美元。

This solid backlog was driven by record bookings of $319.4 million for core TTM and $387.8 million, including Telephonics. The solid demand in the 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 key programs, including the Spy 6 radar program and a major space program. We expect sales in Q4 from this end market to represent about 40% of our total sales.

這一堅實的積壓是由創紀錄的 3.194 億美元核心 TTM 預訂和 3.878 億美元（包括電話）推動的。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，我們看到了重要項目的大量預訂，包括 Spy 6 雷達項目和一個主要的太空項目。我們預計第四季度該終端市場的銷售額將占我們總銷售額的 40% 左右。

The medical industrial instrumentation end market contributed 19% of our total sales in the third quarter compared to 20% in the year ago quarter and 21% in the second quarter of 2022. Revenues from this market were up 18% year-on-year, exceeding $100 million for the sixth quarter in a row and performing much better than expected, with broad-based strength across all segments. For the fourth quarter, we expect MINI to be 17% of revenues as quick turn continues to moderate and select customers face component shortages.

醫療工業儀器終端市場在第三季度貢獻了我們總銷售額的 19%，而去年同期為 20%，2022 年第二季度為 21%。該市場的收入同比增長 18%，連續第六個季度超過 1 億美元，表現遠好於預期，在所有領域都有廣泛的實力。對於第四季度，我們預計 MINI 將佔收入的 17%，因為快速轉向繼續放緩，部分客戶面臨零部件短缺。

Automotive sales represented 15% of total sales during the third quarter of 2022 compared to 18% in the year ago quarter and 18% during the second quarter of 2022. Automotive revenues grew 1.6% year-over-year and exceeded $100 million for the fourth quarter in a row. We continue to see stable trends 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. We expect our automotive PCB business to contribute 16% of total sales in Q4.

2022 年第三季度汽車銷售額佔總銷售額的 15%，而去年同期為 18%，2022 年第二季度為 18%。汽車收入同比增長 1.6%，第四季度超過 1 億美元連續四分之一。儘管 COVID 造成的供應鍊和需求中斷、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 的穩定趨勢。我們預計我們的汽車 PCB 業務將在第四季度貢獻總銷售額的 16%。

Sales in the data center computing end market represented 14% of total sales in the third quarter compared to 14% in Q3 of 2021 and 17% in the second quarter of 2022. Revenues from this end market were up 18% year-on-year due primarily to growth from our data center customers. We expect revenues in this end market to represent approximately 14% of fourth quarter sales as data center demand continues to drive year-on-year growth. Networking/communications accounted for 14% of revenue during the third quarter of 2022. This compares to 16% in the third quarter of 2021 and 14% of revenue in the second 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 through our data center computing and networking customers.

數據中心計算終端市場的銷售額在第三季度佔總銷售額的 14%，而 2021 年第三季度和 2022 年第二季度分別為 14% 和 17%。該終端市場的收入同比增長 18%主要是由於我們的數據中心客戶的增長。由於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四季度銷售額的 14% 左右。網絡/通信佔 2022 年第三季度收入的 14%。相比之下，2021 年第三季度為 16%，2022 年第二季度為 14%。我們看到同比增長相對強勁與電信相比，網絡以年為基礎，因為我們繼續通過我們的數據中心計算和網絡客戶為高層數板分配容量。

In Q4, we expect this end market to be 13% of revenue as customers manage their inventory levels. Next, I'll cover some details from the third 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 41% of our revenue and now includes all of the Telephonics revenue. This compares to approximately 29% in the year ago quarter and 33% in Q2. 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.

在第四季度，隨著客戶管理他們的庫存水平，我們預計這個終端市場將佔收入的 13%。接下來，我將介紹第三季度的一些細節。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、剛性柔性和射頻子系統和組件）占我們收入的約 41%，現在包括所有電話收入。相比之下，去年同期約為 29%，第二季度約為 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。

PCB capacity utilization in Asia Pacific was 78% in Q3 compared to 91% in the year ago quarter and 88% in Q2. Our overall PCB capacity utilization in North America was 45% in Q3 compared to 50% in the year ago quarter and 42% in Q2. The lower rate in Asia Pacific was caused by a decline in production volumes, while the lower year-over-year rate in North America was due to additional plating capacity added earlier in the year and direct labor shortages in certain regions. Our top 5 customers contributed 33% of total sales in the third quarter of 2022 compared to 30% in the second quarter of 2022. We did not have any customers over 10% in the quarter.

第三季度亞太地區的 PCB 產能利用率為 78%，而去年同期為 91%，第二季度為 88%。第三季度我們在北美的整體 PCB 產能利用率為 45%，而去年同期為 50%，第二季度為 42%。亞太地區的下降是由於產量下降，而北美的同比下降是由於今年早些時候增加了電鍍產能以及某些地區的直接勞動力短缺。我們的前 5 名客戶在 2022 年第三季度貢獻了總銷售額的 33%，而在 2022 年第二季度這一比例為 30%。本季度我們沒有任何超過 10% 的客戶。

At the end of Q3, our 90-day backlog, including Telephonics, which is subject to cancellations, was $672.9 million compared to $594.8 million at the end of the third quarter last year, not including Telephonics and $703.7 million at the end of Q2, including Telephonics. Our book-to-bill ratio, including Telephonics, was 0.92 for the 3 months ended October 3. The book-to-bill was below 1 due to a decline in bookings in our commercial business as lead times were reduced and customers manage inventories and face supply chain challenges. I do want to thank our employees for continuing to contribute to TTM and our critical mission of inspiring innovation for our customers. Our business performed better than we expected as a direct result of our employees and our supply chain partners concerted efforts to support TTM and our customers. Now Todd will review our financial performance for the third quarter. Todd?

在第三季度末，我們的 90 天積壓訂單（包括可能被取消的 Telephonics）為 6.729 億美元，而去年第三季度末為 5.948 億美元，不包括 Telephonics，第二季度末為 7.037 億美元，包括電話。截至 10 月 3 日止 3 個月，我們的訂單出貨比（包括 Telephonics）為 0.92。由於交貨時間縮短以及客戶管理庫存和面臨供應鏈挑戰。我要感謝我們的員工繼續為迅達做出貢獻，感謝我們為客戶激發創新的關鍵使命。由於我們的員工和供應鏈合作夥伴齊心協力支持迅達和我們的客戶，我們的業務表現好於我們的預期。現在托德將審查我們第三季度的財務業績。托德?

Todd hit star 6, you'll be able to come off. Star 6.

托德打六星，你就可以脫身了。星 6。

Okay. Can you hear me now?

好的。你能聽到我嗎？

Yes, we can hear you.

是的，我們可以聽到你的聲音。

Great. Thanks, everybody, and I appreciate your patience today with all of our technical challenges. I'll take a quick review of our financial results for the third quarter, which are also shown in the press release distributed today as well as on Slide 6 of our earnings presentation that is posted to our website. For the third quarter, net sales were $671.1 million compared to $556.8 million in the third quarter of 2021. The year-over-year increase in revenue was primarily due to the inclusion of Telephonics as well as organic growth in each of our end markets. GAAP operating income for the third quarter of 2022 was $49.8 million. This compares to $32.2 million in the third quarter of 2021. On a GAAP basis, net income in the third quarter of 2022 was $43.5 million or $0.42 per diluted share. This compares to GAAP net income of $21 million or $0.19 per diluted share in the third quarter of last year.

偉大的。謝謝大家，感謝您今天對我們所有技術挑戰的耐心等待。我將快速回顧一下我們第三季度的財務業績，這些業績也顯示在今天發布的新聞稿以及發佈在我們網站上的收益演示文稿的幻燈片 6 中。第三季度的淨銷售額為 6.711 億美元，而 2021 年第三季度為 5.568 億美元。收入的同比增長主要是由於電話業務的加入以及我們每個終端市場的有機增長。 2022 年第三季度的 GAAP 營業收入為 4980 萬美元。相比之下，2021 年第三季度為 3220 萬美元。按公認會計原則計算，2022 年第三季度的淨收入為 4350 萬美元或稀釋後每股收益 0.42 美元。相比之下，去年第三季度的 GAAP 淨收入為 2100 萬美元或每股攤薄收益 0.19 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 noncash expense items such as amortization of intangibles and stock compensation and other unusual or infrequent items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate comparisons with expectations and prior periods. Gross margin in the third quarter was 19.7% and compares to 17.2% in the third quarter of 2021. The year-on-year increase was due to better product mix, higher pricing and premium revenue and the addition of Telephonics, partially offset by higher year-on-year labor costs, particularly in North America as we wages earlier this year to be more competitive. Selling and marketing expense was $19.1 million in the third quarter or 2.8% of net sales versus $15.1 million or 2.7% of net sales a year ago. Third quarter G&A expense was $38 million or 5.7% of net sales compared to $29.1 million or 5.2% of net sales in the same quarter last year. The inclusion of Telephonics added $2.3 million and $3.2 million to sales and marketing and G&A, respectively.

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併購相關成本、重組成本、某些非現金支出項目，如無形資產攤銷和股票補償以及其他不尋常或不常見的項目。我們提供非公認會計準則財務信息，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。第三季度毛利率為 19.7%，而 2021 年第三季度為 17.2%。同比增長是由於更好的產品組合、更高的定價和溢價收入以及電話業務的增加，部分被更高的同比勞動力成本，尤其是在北美，因為我們今年早些時候的工資更具競爭力。第三季度的銷售和營銷費用為 1910 萬美元，占淨銷售額的 2.8%，而一年前為 1510 萬美元，占淨銷售額的 2.7%。第三季度的 G&A 費用為 3800 萬美元，占淨銷售額的 5.7%，而去年同期為 2910 萬美元，占淨銷售額的 5.2%。 Telephonics 的加入分別為銷售和營銷以及 G&A 增加了 230 萬美元和 320 萬美元。

In the third quarter, R&D was $7 million or 1% of revenues compared to $4 million or 0.7% of revenues in the year ago quarter. $2 million of the increase was due to the addition of Telephonics. Our operating margin in Q3 was 10.2%, an outstanding result given the macro challenges we've been facing. This compares to 8.6% in the same quarter last year. Interest expense was $10.4 million in the third quarter compared to $10.6 million in the same quarter last year. During the quarter, there was a positive $9 million of foreign exchange impact below the operating line. Government incentives and interest income increased this to $10.3 million or an $0.08 impact to EPS. This compares to a loss of $0.1 million in the same quarter last year. Our effective tax rate was 15% in the third quarter, resulting in tax expense of $10.2 million. This compares to a rate of 1.1% or tax expense of $0.4 million in the prior year.

第三季度，研發為 700 萬美元或收入的 1%，而去年同期為 400 萬美元或收入的 0.7%。增加的 200 萬美元是由於增加了 Telephonics。我們第三季度的營業利潤率為 10.2%，考慮到我們一直面臨的宏觀挑戰，這是一個出色的結果。相比之下，去年同期為 8.6%。第三季度的利息支出為 1040 萬美元，而去年同期為 1060 萬美元。在本季度，營業線以下產生了 900 萬美元的正外匯影響。政府激勵措施和利息收入增加至 1030 萬美元，或對每股收益產生 0.08 美元的影響。相比之下，去年同期虧損 10 萬美元。第三季度我們的有效稅率為 15%，導致稅收支出為 1020 萬美元。相比之下，上一年的稅率為 1.1% 或稅費為 40 萬美元。

Third quarter net income was $57.9 million or $0.56 per diluted share. This compares to third quarter 2021 net income of $36.5 million or $0.34 per diluted share. Adjusted EBITDA for the third quarter was $102.5 million or 15.3% of revenue compared with third quarter 2021 adjusted EBITDA of $68.6 million or 12.3% of revenue. Depreciation for the quarter was $24 million. Net capital spending in the quarter was $26.3 million. Cash flow from operations was a very strong $80 million or 11.9% of revenue, exceeding our target of 10%. Free cash flow was also very good at $53.7 million or 8% of revenue. Cash and cash equivalents at the end of the third quarter of 2022 were $335.6 million, and our net debt divided by last 12 months EBITDA was 1.8x, below our target of 2.0.

第三季度淨收入為 5790 萬美元或每股攤薄收益 0.56 美元。相比之下，2021 年第三季度的淨收入為 3650 萬美元或每股攤薄收益 0.34 美元。第三季度調整後 EBITDA 為 1.025 億美元，佔收入的 15.3%，而 2021 年第三季度調整後 EBITDA 為 6860 萬美元，佔收入的 12.3%。本季度折舊為 2400 萬美元。本季度的淨資本支出為 2630 萬美元。運營現金流非常強勁，達到 8000 萬美元，佔收入的 11.9%，超過了我們 10% 的目標。自由現金流也非常好，為 5370 萬美元，佔收入的 8%。 2022 年第三季度末的現金和現金等價物為 3.356 億美元，我們的淨債務除以過去 12 個月的 EBITDA 為 1.8 倍，低於我們 2.0 的目標。

Now I'd like to turn to guidance for the fourth quarter. We expect total revenue for the fourth quarter of 2022 to be in the range of $630 million to $670 million, and we expect non-GAAP earnings to be in the range of $0.36 to $0.42 per diluted share. As Tom mentioned earlier, we expect sequential decline in revenues due to macroeconomic concerns by customers in our commercial end markets. Some commercial customers are carefully managing inventory levels and others are facing supply chain challenges. We expect a sequential decline in margins due to lower revenues and less premium revenues. The EPS forecast is based on a diluted share count of approximately 104 million shares, which includes dilutive securities such as options and RSUs. We expect that SG&A expense will be about 9.1% of revenue in the fourth quarter and R&D to be about 1.1% of revenue. We expect interest expense to total approximately $11.7 million.

現在我想轉向第四季度的指導。我們預計 2022 年第四季度的總收入將在 6.3 億美元至 6.7 億美元之間，我們預計非 GAAP 收益將在每股攤薄收益 0.36 美元至 0.42 美元之間。正如湯姆之前提到的，由於我們商業終端市場的客戶對宏觀經濟的擔憂，我們預計收入將連續下降。一些商業客戶正在仔細管理庫存水平，而另一些則面臨供應鏈挑戰。由於收入下降和保費收入減少，我們預計利潤率將連續下降。每股收益預測基於約 1.04 億股的稀釋股數，其中包括期權和 RSU 等稀釋性證券。我們預計 SG&A 費用將佔第四季度收入的 9.1% 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 1170 萬美元。

Finally, we estimate our effective tax rate to be between 13% and 17%. To assist you in developing your financial models, we offer the following additional information. During the fourth quarter, we expect to record amortization of intangibles of about $11.7 million, stock-based compensation expense of about $5.4 million, noncash interest expense of approximately $0.5 million, and we estimate depreciation expense will be approximately $24.5 million. Finally, I'd like to announce that we'll be participating in the Baird Industrial Conference on November 8 and the Bank of America Leverage Finance Conference on November 29. That concludes our prepared remarks, and now we'd like to give an opportunity for questions. Sameer...

最後，我們估計我們的有效稅率在 13% 到 17% 之間。為了幫助您開發財務模型，我們提供以下附加信息。在第四季度，我們預計無形資產攤銷約為 1170 萬美元，股票補償費用約為 540 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。最後，我想宣布我們將參加 11 月 8 日的 Baird 工業會議和 11 月 29 日的美國銀行槓桿金融會議。我們準備好的發言到此結束，現在我們想給一個機會提問。薩米爾...

Yes. Thanks, Todd. This is Sameer from TTM. So if you have any questions for Tom and Todd, please text or e-mail me, and I will call on you to ask your question. When I do make sure you're unmuted and the way you mute your line is star 6. So first question, Will Stein -- can you go ahead and ask your question, make sure we can hear you if we can't do a star 6 on your line...

是的。謝謝，托德。這是來自 TTM 的 Sameer。因此，如果您對 Tom 和 Todd 有任何問題，請給我發短信或發送電子郵件，我會打電話給您提出問題。當我確實確保您未靜音並且您將線路靜音的方式是星號 6 時。所以第一個問題，Will Stein -- 你能繼續問你的問題嗎，如果我們不能做的話，請確保我們能聽到你的聲音6星在你的行...

Can you hear me?

你能聽到我嗎？

Yes, we can hear you well.

是的，我們可以很好地聽到您的聲音。

Great. I figured it out. A couple of questions. First, you described premium revenue a couple of times in the call. I suspect that relates to sort of quick turn less than normal lead time sort of product that may be less important to customers today given the softening demand? Is that the right way to describe it?

偉大的。我想到了。幾個問題。首先，您在電話會議中多次描述了保費收入。我懷疑這與一種比正常交貨時間更短的產品快速周轉有關，鑑於需求疲軟，這種產品對今天的客戶來說可能不太重要？這是描述它的正確方式嗎？

Yes, that's correct, Will. And so it's a quick turn and generally new product introduction, that's been -- that's where a lot of that work is concentrated of late. It's -- if customers need product within -- well within our lead times, then that would be included in premium revenue. And to give you some perspective, historically, we ran about 9% of revenue and premium. And the most recent -- so if you thought think about Q2, which was very elevated, we're closer to 12%. And in this most recent quarter, we were at about 10%. So still elevated. What we're expecting in the fourth quarter is to come down actually below -- slightly below that historical average. So really seeing the pendulum come back in terms of premium requirements.

是的，這是正確的，威爾。因此，這是一個快速的轉變，通常是新產品的推出，這就是最近很多工作集中的地方。如果客戶在我們的交貨時間內需要產品，那麼這將包含在溢價收入中。為了給你一些視角，從歷史上看，我們運行了大約 9% 的收入和溢價。而最近的 - 所以如果你考慮一下非常高的第二季度，我們接近 12%。在最近的這個季度，我們的比例約為 10%。所以還是高的。我們對第四季度的預期實際上是低於 - 略低於歷史平均水平。所以真的看到鐘擺在保費要求方面又回來了。

Got it. And as a follow-up, I'd like to ask about wage inflation. This has been sort of an issue in years past where you couldn't secure enough labor. This was a supply constraint. And then earlier in the year, you talked about raising wages. I think there was a global analysis you made and you decided to raise wages globally. But I think I heard you say that you continue to be constrained by labor in North America. Is it something we should expect to continue to limit revenue growth? Or should we think about another potential wage increase on the comp? Thank you.

知道了。作為後續，我想問一下工資通脹。這在過去幾年中一直是一個問題，因為您無法獲得足夠的勞動力。這是供應限制。然後在今年早些時候，你談到了提高工資。我認為您進行了全球分析，並決定在全球範圍內提高工資。但我想我聽到你說你繼續受到北美勞動力的限制。我們是否應該期望它會繼續限制收入增長？還是我們應該考慮另一個潛在的工資增長？謝謝你。

Yes. Thank you, Will. Yes. So you're very good recollection. We -- early in the year in approximately the February time frame, we did make a very -- a big adjustment in our structures for compensation in North America. We saw that we were in a difficult labor market, and we also recognize that we have really fallen behind where we needed to be in North America. And so we -- this was part of a leveling of our entire organization. So that was a global leveling project that we did to really get all of our titling, our compensation on a global -- into a global framework, a huge project that we've embarked on several years prior. As part of that project, really the last phase was to make this adjustment in North America.

是的。謝謝你，威爾。是的。所以你記性很好。我們 - 在大約 2 月的時間框架內，在今年年初，我們確實對我們在北美的薪酬結構進行了非常大的調整。我們看到我們處於艱難的勞動力市場，我們也認識到我們在北美確實落後於我們需要達到的地方。所以我們 - 這是我們整個組織平衡的一部分。所以這是一個全球平衡項目，我們真正將我們所有的頭銜，我們在全球範圍內的報酬 - 納入一個全球框架，這是我們幾年前開始的一個巨大項目。作為該項目的一部分，實際上最後一個階段是在北美進行這種調整。

So -- and I'm pleased to say that as a result of that, of course, we also did our normal compensation review in midyear, and that is a global review. But as a result of the changes, we really have found turnover rates to come down and retention has improved. -- what we're referring to here is an ongoing challenge now is really the recruiting of labor and particularly direct labor in a number of the regions in North America that we operate in. And that's been just an ongoing challenge that we've had to face. It's coupled a bit with ongoing absenteeism related to COVID. -- frankly, in some of the jurisdictions in which we operate, we're required to give extra PTO for -- specifically for COVID purposes, and we've chosen to do that as a company as well. So those are the 2 issues that we continue to be challenged with in North America. And I would love to say that the direct labor challenges going away. I really do think that depends on where the economy goes. We are very secure in our need for direct labor going forward and with such a strong defense business in North America that we're seeing -- we will see a need for TTM employees and continuing to build on our strong base of employees for -- certainly for the foreseeable future here in North America. Next question?

所以 - 我很高興地說，因此，我們當然也在年中進行了正常的薪酬審查，這是一次全球性的審查。但由於這些變化，我們確實發現離職率下降了，留存率提高了。 - 我們在這裡指的是一個持續的挑戰，現在實際上是在我們經營的北美一些地區招聘勞動力，特別是直接勞動力。這只是我們面臨的一個持續挑戰面對。這與與 COVID 相關的持續曠工有點相關。 - 坦率地說，在我們經營的一些司法管轄區，我們需要提供額外的 PTO 來 - 特別是為了 COVID 目的，我們也選擇作為一家公司這樣做。所以這些是我們在北美繼續面臨挑戰的兩個問題。我想說的是，直接勞動力挑戰正在消失。我真的認為這取決於經濟的走向。我們對直接勞動力的需求非常有保障，並且我們看到北美有如此強大的國防業務——我們將看到對 TTM 員工的需求，並繼續在我們強大的員工基礎上建立——當然，在可預見的未來，在北美。下一個問題？

Yes. Thanks. So next question, Mike Crawford, you can go ahead and ask.

是的。謝謝。所以下一個問題，邁克克勞福德，你可以繼續問。

You're good at reverse engineering, Mike. I'll give you credit for that. Yes, we're still going to have good margins. They just won't be as strong as our current quarter or Q3. We will still have a good performance. So if you do the reverse math, yes, you're going to probably come up with gross margins greater than 18%.

你擅長逆向工程，邁克。我會給你功勞。是的，我們仍然會有不錯的利潤。他們只是不會像我們當前的季度或第三季度那樣強大。我們仍然會有很好的表現。所以如果你做相反的數學，是的，你可能會得出大於 18% 的毛利率。

Okay. Thank you, Todd. And then if I heard right regarding Malaysia perhaps you already have commitments for what would represent 60% of the capacity of that facility. So at what level of capacity do you hope to be operating that facility in general? And what do you say that -- where you are with that foundation and the steel raising that you're on track or at or behind kind of schedule to get that up and running?

好的。謝謝你，托德。然後，如果我沒聽錯關於馬來西亞的說法，也許您已經承諾佔該設施產能的 60%。那麼，您希望以什麼水平的能力運營該設施？你怎麼說——你在那個基礎上的位置，以及你在軌道上或在或落後於某種時間表的鋼鐵提升來啟動和運行？

Sure. Thanks, Mike. Yes. So you're correct, 60% in terms of to what would be our planned capacity. That planned capacity will be about $180 million of capacity for revenue. Of course, that will move around a little bit depending on the pricing at the given moment, what the product mix is. But that's an approximate number for you. And from a production volume standpoint, about slightly over 60% already committed to with a long-term agreement. So that's where we sit in terms of the customer side. We're continuing to work that, by the way. We continue to have some very fruitful discussions. And so hopefully, that percentage will move upwards. In terms of progress, I think we're very much on schedule at this point. The one of the benefits in terms of the site planning that we've done in our operations team has really put in place in terms of planning. Early on, they went with a steel frame construction for this building, and that's a little bit more expensive, but it involves less labor from a construction standpoint. And Malaysia, like so many countries is dealing with labor shortages. So the fact that we've got a relatively simple and efficient construction framework is going to help us, and we certainly hope to remain on schedule to date, we are...

當然。謝謝，邁克。是的。所以你是對的，就我們計劃的產能而言，60% 是正確的。該計劃產能將是大約 1.8 億美元的收入產能。當然，這會根據給定時刻的定價、產品組合的不同而有所變化。但這對你來說是一個大概的數字。從產量的角度來看，大約 60% 以上的公司已經承諾簽訂長期協議。這就是我們在客戶方面所處的位置。順便說一句，我們正在繼續努力。我們繼續進行一些非常富有成果的討論。所以希望這個百分比會上升。在進展方面，我認為我們目前非常按計劃進行。我們在運營團隊中所做的站點規劃方面的好處之一已經在規劃方面真正落實到位。早期，他們為這座建築採用了鋼架結構，這有點貴，但從建築的角度來看，它涉及的勞動力更少。和許多國家一樣，馬來西亞也在應對勞動力短缺問題。因此，我們擁有一個相對簡單和高效的構建框架這一事實將對我們有所幫助，我們當然希望迄今為止仍能按計劃進行，我們...

Excellent. Thank you very much.

出色的。非常感謝。

Thanks, Mike.

謝謝，邁克。

So next question, Jim Ricchiuti from Needham. Can you just check your audio real quick and come out from you if you're on me press star 6. Jim, we can't hear you yet... So you might I think you... Yes, we can hear you now...

那麼下一個問題，來自Needham 的Jim Ricchiuti。如果你在我身上，你能不能快速檢查你的音頻，然後從你身上出來？按星號 6。吉姆，我們還聽不到你的聲音......所以你可能會認為你......是的，我們可以聽到你的聲音現在...

Wonderful. Tom, I just wanted to drill down into not surprisingly, some of the comments about the softening you're seeing in some of your commercial markets. And I'm wondering if you could elaborate on that, which of the verticals? And how did that play out over the course of the quarter? And what are you seeing thus far in Q4?

精彩的。湯姆，我只是想深入了解一些關於您在某些商業市場中看到的軟化的評論。我想知道您是否可以詳細說明，哪個垂直？在本季度的過程中，情況如何？到目前為止，您在第四季度看到了什麼？

Okay. Sure, Jim. Yes, let me -- I'll give you a bit of a ranking here. And so -- and I'll start with sort of the areas of what I would call a softening that we're seeing. If you -- if the -- the second eye in MII, which is instrumentation, so the semiconductor capital equipment side of our instrumentation business, which roughly a little bit less than half of the instrumentation piece of MII, we are seeing softness there. We are seeing softness in computing, which for us is semiconductor. -- burn-in test and burn-in board area, we've seen some relative softness there. Telecom, we've seen softness there to customers in that area are referring to inventory control, but we're believing that, that also is an indicator of a little bit of softness, the 5G build-outs right now are alive and well in India, but other countries seem to have slowed down. And then commercial aerospace continues to be weak, relatively weak. That's an ongoing story until we -- as we see passenger traffic come back as we see jet builds restart and as we see customers work through inventory, that situation should improve.

好的。當然，吉姆。是的，讓我 - 我會在這裡給你一個排名。所以——我將從我們所看到的一些我稱之為軟化的領域開始。如果你 - 如果 - MII 中的第二隻眼睛，即儀器儀表，那麼我們儀器儀表業務的半導體資本設備方面，大約略低於 MII 儀器儀表部分的一半，我們在那裡看到了軟弱。我們正在看到計算的軟性，對我們來說就是半導體。 ——老化測試和老化板區域，我們已經看到那裡有些相對柔軟。電信，我們已經看到該領域客戶的疲軟是指庫存控制，但我們相信，這也是疲軟的一個指標，目前的 5G 建設仍然存在並且很好印度，但其他國家似乎已經放慢了腳步。然後商業航空繼續疲軟，相對疲軟。這是一個持續的故事，直到我們看到客運量恢復，因為我們看到噴氣式飛機建造重新啟動，並且當我們看到客戶通過庫存工作時，這種情況應該會有所改善。

On the watch -- I'll just say, watch list, meaning customers referring to supply chain management and inventory controls, I would put data center and networking, both areas where customers are still pointing to demand strength, but they are certainly looking at short-term inventory controls as they see their supply chain situation gradually improve. So those areas in medical, I referred to a little bit of less medical premium work, which is an indicator, I think, of certainly more inventory control going on in that area as well. So that's sort of a middling area. And then where we're still continuing to see strength. Industrial, we're involved in downhole areas, industrial robotics, big areas for us, still doing very well. Automotive solid automotive demand continues to be solid from our customers. And then, of course, defense, very strong. So a mix there of businesses. I think if you listen to that, you can see that on balance, the markets are continuing to be good with areas of softening. And those are the areas that we're watching closely.

在手錶上——我只想說，觀察名單，意思是客戶指的是供應鏈管理和庫存控制，我會把數據中心和網絡放在這兩個領域，客戶仍然指向需求強度，但他們肯定在關注短期庫存控制，因為他們看到他們的供應鏈狀況逐漸改善。因此，在醫療領域，我提到了一些較少的醫療優質工作，我認為這是一個指標，當然也表明該領域正在進行更多的庫存控制。所以這是一個中等的區域。然後我們仍在繼續看到實力。工業，我們涉足井下領域，工業機器人，對我們來說很大的領域，仍然做得很好。汽車 強勁的汽車需求繼續來自我們的客戶。然後，當然，防守，非常強大。所以那裡有各種各樣的企業。我認為，如果您聽聽，您可以看到總體而言，市場在疲軟的領域繼續表現良好。這些是我們正在密切關注的領域。

Got it. If I could squeeze a follow-up just with respect to telematics, and I may have missed it. Todd, I think you had talked about it contributing something on the order of $0.04 in earnings. I don't know if that was the case in the quarter and whether the synergies that you've talked about, are they -- is that time line still intact? Or it's early days, I know.

知道了。如果我能在遠程信息處理方面進行後續跟進，我可能會錯過它。托德，我想你已經談到它貢獻了大約 0.04 美元的收益。我不知道本季度的情況是否如此，以及您所談到的協同效應是否——時間線是否仍然完好無損？或者現在還為時尚早，我知道。

I'll answer the latter first and then follow up. So in regards to synergies, as Tom indicated, we are in the process of integration, and we're making good progress -- when we announced the acquisition, we talked about our plan to achieve $12 million of run rate synergies by the end of 2024. And we are on track to deliver that. We're feeling really good about that as we get into the weeds and start being very specific in what actions to take. So that's moving nicely and consistent with our earlier expectations. In terms of Telephonics contribution to the quarter, you're pretty close. The revenue for the quarter was about $68 million. And keep in mind that the calendar Q3 quarter is traditionally the peak quarter for Telephonics as that used to be their fiscal year-end. And so all their programs drive towards that end date.

我會先回答後者，然後再跟進。因此，在協同效應方面，正如湯姆所說，我們正在整合過程中，我們正在取得良好進展——當我們宣布收購時，我們談到了我們計劃在年底前實現 1200 萬美元的運行率協同效應2024. 我們正在按計劃實現這一目標。當我們進入雜草並開始非常具體地採取什麼行動時，我們對此感覺非常好。所以這進展順利，與我們之前的預期一致。就本季度的電話業務貢獻而言，您已經非常接近了。本季度的收入約為 6800 萬美元。請記住，日曆 Q3 季度傳統上是 Telephonics 的高峰季度，因為它曾經是他們的財政年度結束。所以他們所有的程序都朝著那個結束日期前進。

Profit performance came in pretty good. As you noted, we give some indication, we were expecting about $0.04 of contribution. Maybe we got a little bit more than that. So it was slightly favorable, maybe $0.05, but it was in that neighborhood. So they surprised on the upside a bit there. So a good first quarter, but we are expecting things to be a little lighter in calendar Q4 as that's traditionally coming off their peak for their traditional fiscal year.

盈利表現相當不錯。正如您所指出的，我們給出了一些指示，我們預計大約 0.04 美元的捐款。也許我們得到的遠不止這些。所以它有點優惠，可能是 0.05 美元，但它就在那個街區。所以他們在那裡有點驚訝。所以第一季度不錯，但我們預計第四季度的情況會稍微輕鬆一些，因為這通常會在他們傳統的財政年度達到頂峰。

Got it. Thank you.

知道了。謝謝你。

Thanks, Jim.

謝謝，吉姆。

Yes. So next question, Tyler from Craig Hallum. If we can't hear you, you might have done a year line get...

是的。下一個問題，來自 Craig Hallum 的 Tyler。如果我們聽不到您的聲音，您可能已經完成了一年的線路獲取...

You may now...

你現在可能...

Yes, I can hear you, Tyler.

是的，我能聽到你的聲音，泰勒。

Awesome. Great. ask a question or 2 here quick. So I guess I want to follow up on some of these commercial market weakness you're seeing. And I just wanted your thoughts there that you looking into next year, would it be fair to expect some of these headwinds to persist into next year? It would seem that off in these type of challenges and the inventory corrections and adjustments that go along with them are not use just one quarter in nature. Is that a fair way to think about as we head into the first half of next year or anything to call out there?

驚人的。偉大的。在這裡快速問一個或 2 個問題。所以我想我想跟進你所看到的一些商業市場的弱點。我只是想讓你在明年考慮一下你的想法，期望這些不利因素中的一些會持續到明年是否公平？似乎在這些類型的挑戰中，隨之而來的庫存修正和調整併不僅僅是使用四分之一。在我們進入明年上半年的時候，這是一個公平的思考方式嗎？或者有什麼可以呼籲的嗎？

Yes. Thanks, Tyler. I think the -- you characterized it well. So if you go through those list of areas that I talked about as softer commercial aerospace should turn into a tailwind here as we go through the course of the next year. We've been bumping along the bottom as customers work through inventories and I expect that we'll start to see real demand come back there. I would say the same for telecom. Generally, 5G build-outs are going to continue. We should still -- we should see strength come back there. So I think really the semiconductor and semiconductor capital equipment side, those are just 2 areas I'd point out as being areas that could be weaker next year. And then the other areas, I think the jury is still out. Certainly, data center and networking. Our customers are indicating that for them, it's really a matter that their programs are strong and that they just need to work through supply chain issues. So good indicators there, at least from the customers. And then medical certainly expect that area to come back as well.

是的。謝謝，泰勒。我認為 - 你很好地描述了它。因此，如果你仔細閱讀我談到的那些領域列表，因為我們在明年的過程中，商業航空航天領域應該會變成順風。隨著客戶處理庫存，我們一直在觸底，我預計我們將開始看到真正的需求回到那裡。對於電信，我也會這麼說。一般來說，5G 建設將繼續進行。我們仍然應該——我們應該看到力量回到那裡。所以我認為真的是半導體和半導體資本設備方面，這只是我要指出的兩個領域，明年可能會較弱。然後是其他領域，我認為還沒有定論。當然，數據中心和網絡。我們的客戶表示，對他們來說，真正重要的是他們的計劃很強大，他們只需要解決供應鏈問題。那裡有這麼好的指標，至少來自客戶。然後醫療當然希望該領域也能恢復。

I mean, they're working through inventory, but I really do believe that's more of a temporary issue than anything else. So on balance, again, it's wonderful to have a diverse set of end markets that we're serving here, particularly in these times when certainly some areas may soften a bit. But also having that strong defense business that works on a very different cycle. So I like where we sit right now going into 2023.

我的意思是，他們正在處理庫存，但我真的相信這只是一個暫時的問題，而不是其他任何事情。因此，總的來說，擁有我們在這裡服務的多樣化終端市場真是太好了，特別是在某些領域肯定會有所軟化的時代。但也有強大的國防業務在一個非常不同的周期運作。所以我喜歡我們現在坐到 2023 年的位置。

That sounds great. And then one more quick one, if I can, for Todd, probably. On the margins, again, gross margin specifically probably, could you either maybe give us what a normalized gross margin might look like at this level, absent some of these headwinds that we called out or what kind of impact you might attribute to the gross margins in your Q4 guide, just so we can kind of get a baseline as we go into next year?

聽起來不錯。如果可以的話，再給 Todd 一個更快速的。在利潤率方面，特別是毛利率，您能否告訴我們在這個水平上的標準化毛利率可能是什麼樣子，沒有我們提到的一些不利因素，或者您可能會將什麼樣的影響歸因於毛利率在您的第四季度指南中，只是為了讓我們在進入明年時獲得一個基線？

I'm not sure I quite understand the question. Are you asking about Q4 guidance and expectations?

我不確定我是否完全理解這個問題。您是在詢問第四季度的指導和期望嗎？

You talk... The Q4 guidance and you say I think margins were going to be down due to some of the same kind of macro headwinds and concerns at some of these markets we talked about. So I guess is it just a volume thing with those markets being down is there, I guess, anything else to call out on the manage front that we should be.

你說......第四季度的指導，你說我認為由於我們談到的一些市場存在一些相同的宏觀逆風和擔憂，利潤率將會下降。因此，我想這只是那些市場下跌的數量問題，我想，還有什麼可以在管理方面提出我們應該做的事情。

Well, I think we made the comment in the script but it's really fairly straightforward. We have some revenue decline in Q4 compared to Q3. And really coming from some of those commercial markets, as Tom has commented on. And that hurts us in volume. But I would say, if you look at our margins overall, and we tend to look more at operating margins, but you can -- it's the same explanation for gross margins. If you do the reverse engineering of the EPS guidance that we gave, you're going to get a number somewhere around 9% in terms of operating margin, and that's down from the 10.2%. And that decline is really driven by 2 things. One, volume and the other one is a further decline in premium revenue.

好吧，我認為我們在腳本中做了評論，但這真的很簡單。與第三季度相比，我們在第四季度的收入有所下降。正如湯姆所評論的那樣，真正來自其中一些商業市場。這在數量上傷害了我們。但我想說，如果你看一下我們的整體利潤率，我們傾向於更多地關注營業利潤率，但你可以——這與毛利率的解釋相同。如果你對我們給出的 EPS 指導進行逆向工程，你會得到一個大約 9% 的營業利潤率數字，低於 10.2%。這種下降實際上是由兩件事驅動的。一是銷量，二是保費收入進一步下降。

So Tom talked about earlier in the call that our premium revenue in the third quarter was still pretty good. It was better than we were expecting in our guidance, and so that helped on the upside. But it is definitely declining from its peaks. And that's really a reflection of some softening that we've been talking about. So when you look at the impact in our guidance for Q4, the reason for the decline in margin is really split 50-50 lower volume and less premium revenue expected.

所以湯姆早些時候在電話會議中談到，我們第三季度的保費收入仍然相當不錯。這比我們在指導中的預期要好，因此這有助於上行。但它肯定會從峰值下降。這確實反映了我們一直在談論的一些軟化。因此，當您查看我們對第四季度指導的影響時，利潤率下降的原因實際上是 50-50 的銷量減少和預期的保費收入減少。

That's perfect. Thank you. That’s all for me. Thanks guys.

那很完美。謝謝你。這就是我的全部。多謝你們。

Thanks. So next question is Matt Sheerin from Stifel.

謝謝。下一個問題是來自 Stifel 的 Matt Sheerin。

I appreciate you guys stay in and providing all these details. Just one question. I just wanted to drill down on the automotive outlook. You're still trending down year-over-year even with a sequential growth in December, and I understand the issues at your customers. But as you look at your backlog and visibility into next year, are you expecting kind of a nice rebound in growth next year?

感謝你們留下來並提供所有這些細節。就一個問題。我只是想深入了解汽車的前景。即使在 12 月連續增長，您的同比仍呈下降趨勢，我了解您客戶的問題。但是，當您查看您的積壓訂單和對明年的可見性時，您是否期望明年的增長會出現不錯的反彈？

Thanks, Matt. Yes, and I appreciate your patience -- so automotive for us, year-on-year, if you look at the fourth quarter, we'll be down sequentially maintaining very, very solid position. And I'll just remind you, last year in the fourth quarter was really when we were in the midst of a really strong rebound in customers we're building -- rebuilding inventory position. So Q4 last year was particularly strong. So as we go through the balance, we look into next year, and of course, everyone has their crystal ball. What I'm encouraged by is, number one, the overall macro trends from an automotive standpoint are going to continue to lean on electronics content. And we're going to be looking at PCB content moving from where it was at the end of last year at about $100 PCB content per vehicle upwards to, let's just say, I think the forecasters are calling for $150 to $160 by 2025.

謝謝，馬特。是的，我感謝你的耐心——所以汽車對我們來說，與去年同期相比，如果你看第四季度，我們將繼續保持非常非常穩固的地位。我只想提醒你，去年第四季度真的是我們正在建立的客戶真正強勁反彈的時候——重建庫存狀況。所以去年第四季度特別強勁。因此，當我們完成平衡時，我們會展望明年，當然，每個人都有自己的水晶球。讓我感到鼓舞的是，第一，從汽車的角度來看，整體宏觀趨勢將繼續依賴電子產品。我們將關注 PCB 含量從去年底的水平（每輛車約 100 美元）上升到，我認為預測者要求到 2025 年將達到 150 至 160 美元。

That trend is encouraging. I think we're in the right areas as we focus on ADAS build-out as we focus on ED support. Our team has done a really good job in terms of program placement. So I'm encouraged by that. I think that will certainly help TTM overall and our positioning in the marketplace. As far as the unit volumes in automotive go, I think that's going to be a case of when the supply chain catches up. And hard to predict. Right now, our customers are still dealing with shortages. Over this last quarter, we continued to see PCB demand really robust, particularly in Europe and North America, where we saw weakness was in Asia, China and Japan. And again, I think if you look at the economics, some of the challenges in both of those economies, it makes some sense. So as we go into 2023, I think it's going to be a case of at what point does really automotive production catch up with demand. And then at that point, we'll see what real demand across our geographies is.

這一趨勢令人鼓舞。我認為我們處於正確的領域，因為我們專注於 ADAS 的建設，因為我們專注於 ED 支持。我們的團隊在節目安排方面做得非常好。所以我對此感到鼓舞。我認為這肯定會幫助 TTM 整體和我們在市場中的定位。就汽車的單位數量而言，我認為這將是供應鏈迎頭趕上的情況。而且很難預測。目前，我們的客戶仍在處理短缺問題。在上個季度，我們繼續看到 PCB 需求非常強勁，特別是在歐洲和北美，我們看到亞洲、中國和日本的需求疲軟。再說一次，我認為如果你看看經濟學，這兩個經濟體的一些挑戰，這是有道理的。因此，當我們進入 2023 年時，我認為這將成為汽車生產真正趕上需求的時間點。然後到那時，我們將看到我們各個地區的實際需求是什麼。

And so I think we're going to be, I would say, certainly in the first part of the year, we're in a solid position in automotive. And we'll see what happens again when the supply catches up. And I just can't really predict when that will happen. So -- and just while we're talking automotive, usually the question comes up. So let me address new program wins in automotive this quarter as well. We won a program value of about $125 million in the quarter off of 19 automotive designs, and that's pretty comparable to where we were last year at this time. So positive to see customers releasing packages again for new designs. So that's encouraging, particularly as those packages start to build on a strong EV story for the industry.

所以我認為，我會說，在今年上半年，我們肯定會在汽車領域處於穩固的地位。當供應趕上時，我們將看到會再次發生什麼。我只是無法真正預測什麼時候會發生。所以——就在我們談論汽車的時候，通常會出現問題。因此，讓我來談談本季度汽車領域的新項目勝利。我們在本季度從 19 種汽車設計中贏得了約 1.25 億美元的項目價值，這與我們去年此時的情況相當。很高興看到客戶再次為新設計發布包裝。所以這是令人鼓舞的，特別是當這些套餐開始建立在該行業強大的電動汽車故事之上時。

Okay. That was very helpful. Thanks very much.

好的。這很有幫助。非常感謝。

So this is Sameer. I don't believe we have any more questions in the queue at this point. I get to give everyone our last chance to ask any questions if they would like -- so star 6, if we can't hear you and you need to your line. Okay. It doesn't look like we have any more questions. So I'll hand it back to Tom for any concluding remarks.

這就是薩米爾。我不相信我們現在在隊列中還有任何問題。如果他們願意，我將給每個人最後一次提問的機會——如果我們聽不到您的聲音並且您需要撥打您的電話，請給 6 星。好的。看起來我們沒有更多問題了。因此，我將把它交還給 Tom 以作總結性發言。

Thank you, Sameer. And let me start out by thanking Samir, acting as operator and investor relations and dealing with a very challenging vendor situation today. So thank you, Sameer, for that incredible job. And also, again, I'd like to thank all of you for your patience and your willingness to get on this call on such short notice. Let me just close by summarizing the points I made earlier.

謝謝你，薩米爾。首先讓我感謝 Samir，他擔任運營商和投資者關係並處理當今非常具有挑戰性的供應商情況。所以，謝謝你，Sameer，完成了這項令人難以置信的工作。另外，我要再次感謝大家的耐心和願意在如此短的時間內接聽電話的意願。最後讓我總結一下我之前提出的觀點。

First, TTM delivered revenues in line with guidance and earnings above the high end of guidance. Second, our end market diversification enabled strong revenue growth of 8.3% year-on-year. That's not including Telephonics. Third, we generated strong cash flow, and we're now down to a net leverage of 1.8x. And fourth, we're well positioned for whatever comes our way here in terms of the commercial markets with an aerospace and defense business at 40% of revenues. So in closing, I would just like to thank our employees and our customers. And of course, you, our investors, for your support and your ongoing support. Thank you very much. I hope you have a good rest of the day.

首先，迅達的收入符合指引，收益高於指引的高端。其次，我們的終端市場多元化實現了強勁的收入同比增長 8.3%。這不包括電話。第三，我們產生了強勁的現金流，現在我們的淨槓桿率降至 1.8 倍。第四，我們在商業市場方面處於有利地位，航空和國防業務佔收入的 40%。最後，我想感謝我們的員工和客戶。當然，您，我們的投資者，感謝您的支持和持續的支持。非常感謝。我希望你在這一天過得愉快。