TTM Technologies Inc (TTMI) 2023 Q4 法說會逐字稿

Good morning.

早安.

Thank you for standing by, and welcome to the TTM Technologies Fourth Quarter and Full Year 2023 financial results conference call.

感謝您的耐心等待，歡迎參加 TTM Technologies 2023 年第四季和全年財務業績電話會議。

During today's presentation, all parties will be in a listen-only mode.

在今天的演示過程中，各方都將處於僅聽模式。

Following the presentation, the conference will be open for questions.

演講結束後，會議將開放提問。

If you would like to ask a question, please press star one on your telephone.

如果您想提問，請按電話上的星號一。

You will then hear an automated message advising that your hand has been rate.

然後，您將聽到一條自動訊息，告知您的手牌已被評級。

If you would like to remove yourself from the queue, press star one.

如果您想將自己從佇列中刪除，請按星號一。

Again.

再次。

As a reminder, this conference is being recorded today, February seventh, 2024.

謹此提醒，本次會議於今日（2024 年 2 月 7 日）錄製。

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

現在，我們將由 TTM 企業發展和投資者關係副總裁 Sameer Desai 來查看 TTM 的揭露聲明。

Thank you.

謝謝。

Before we get started I would like to remind everyone that today's call contains forward-looking statements, including statements related to TTM's future business outlook.

在我們開始之前，我想提醒大家，今天的電話會議包含前瞻性陳述，包括與 TTM 未來業務前景相關的陳述。

Actual results could differ materially from these forward-looking statements due to one or more risks and uncertainties, including the risk factors who provide in our filings with the Securities Exchange Commission, which we encourage you to review.

由於一種或多種風險和不確定性，實際結果可能與這些前瞻性陳述有重大差異，包括我們向美國證券交易委員會提交的文件中提供的風險因素，我們鼓勵您查看這些風險因素。

These forward-looking statements represent management's expectations and assumptions based on currently available information.

這些前瞻性陳述代表了管理階層基於目前可用資訊的預期和假設。

Ttm does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events or other circumstances, except as required by law.

Ttm 不承擔任何公開更新或修改任何這些前瞻性聲明的義務，無論是由於新資訊、未來事件或其他情況，除非法律要求。

We will also discuss on this call certain non-GAAP financial measures such as adjusted EBITDA.

我們也會在本次電話會議上討論某些非公認會計準則財務指標，例如調整後的 EBITDA。

Such measures should not be considered as a substitute for measures prepared and presented in accordance with GAAP.

此類措施不應被視為替代根據 GAAP 制定和提出的措施。

And we direct you to the reconciliations between GAAP and non-GAAP measures included in the Company's earnings release, which was which is available on the Investor Relations section of TTM's website at investors dot TTM.com. We also have posted on that website, a slide deck, which we will refer to during our call.

我們還將引導您查看公司收益報告中包含的 GAAP 和非 GAAP 指標之間的對帳信息，您可以在 TTM 網站 Investors dot TTM.com 的投資者關係部分查看該信息。我們還在該網站上發布了幻燈片，我們將在電話會議期間參考。

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

我現在將把電話轉給 TTM 執行長 Tom Edman。

Please go ahead, Tom.

請繼續，湯姆。

Thank you, Sameer.

謝謝你，薩米爾。

Good morning and thank you for joining us for our fourth quarter and full year 2023 conference call.

早上好，感謝您參加我們的 2023 年第四季和全年電話會議。

I'll begin with a review of our business highlights from the quarter and a discussion of our fourth quarter results, followed by a summary of our business strategy.

我將首先回顧本季的業務亮點並討論第四季度的業績，然後總結我們的業務策略。

Dan Bailey, our CFO, will follow with an overview of our Q4 2023 financial performance and our Q1 2024 guidance.

我們的財務長 Dan Bailey 隨後將概述我們 2023 年第四季的財務業績和 2024 年第一季的指導。

We will then open the call to your questions.

然後我們將開始電話詢問您的問題。

The quarter's results are also shown on slide 4 of the investor presentation posted on TTM's website.

該季度的業績也顯示在 TTM 網站上發布的投資者簡報的幻燈片 4 中。

We delivered a strong finish to the year despite the current uncertain macroeconomic environment, and I would like to thank our employees for their hard work and contribution to generating these results.

儘管當前宏觀經濟環境存在不確定性，但我們仍以強勁的業績結束了這一年，我要感謝我們的員工為取得這些成果所做的辛勤工作和貢獻。

In the fourth quarter of 2023, non-GAAP earnings per share were above the high end of the guided range due to excellent operating performance and favorable product mix.

2023 年第四季度，由於出色的經營業績和有利的產品組合，非 GAAP 每股收益高於指導範圍的高端。

Revenues were within the previously guided range due to better than expected results from our aerospace and defense and data center computing end markets, which was offset by lower than expected results from our medical, industrial and instrumentation and automotive end markets.

由於我們的航空航太、國防和資料中心計算終端市場的表現優於預期，但我們的醫療、工業和儀器儀表以及汽車終端市場的表現低於預期，抵消了收入在先前指導範圍內的影響。

Demand in our aerospace and defense market, which was 46% of revenues for the quarter, continues to be solid, with continued strong backlog, offset by weaker demand in some of our commercial end markets.

我們的航空航太和國防市場的需求佔本季收入的 46%，仍然保持強勁，積壓訂單持續強勁，但被我們一些商業終端市場需求疲軟所抵消。

For the full year 2023, revenues declined 11%, driven by the downturn in commercial end markets, offset by growth in the aerospace and defense end markets.

2023 年全年，由於商業終端市場低迷，收入下降了 11%，但被航空航太和國防終端市場的成長所抵消。

While full year.

趁滿年。

Non-gaap operating margins were down year on year, driven by the revenue decline.

由於收入下降，非公認會計準則營業利潤率年減。

Q4 operating margins were actually up year on year despite the revenue headwinds.

儘管收入逆風，第四季度營業利潤率實際上同比增長。

Full year cash flow from operations was $187.3 million, enabling us to strengthen our balance sheet while returning some of the capital to shareholders.

全年營運現金流為 1.873 億美元，使我們能夠加強資產負債表，同時向股東返還部分資本。

In addition, we refinanced our term loan, an asset-based loan, improving the tenor with the first maturity date out to 2028.

此外，我們也為定期貸款（一種基於資產的貸款）進行了再融資，改善了期限，首個到期日為 2028 年。

I would now like to provide a strategic update.

我現在想提供戰略更新。

Ttm is on a journey to transform our business to be less cyclical and more differentiated over the past several years.

在過去的幾年裡，Ttm 正在努力將我們的業務轉型為週期性更低、更具差異化的企業。

Ttm has consistently emphasize 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.

Ttm 始終強調，我們策略的關鍵部分是為我們向客戶提供的產品解決方案增加價值，特別是在航空航太和國防市場。

As a result of strategic moves with the A. and D. acquisitions of andarine and Telephonics since 2018, over 50% of our A&D revenues are now being generated from engineered and integrated electronic products with PCBs being less than 50% of the overall contribution.

自 2018 年以來，A. 和 D. 採取了戰略舉措，收購了 andarine 和 Telephonics，現在我們超過 50% 的 A&D 收入來自工程和整合電子產品，其中 PCB 所佔的比例不到總體貢獻的 50%。

Another important element of our differentiation strategy is our investment in a new state-of-the-art, highly automated PCB manufacturing facility in Penang, Malaysia.

我們差異化策略的另一個重要因素是我們在馬來西亞檳城投資新建的最先進、高度自動化的 PCB 製造工廠。

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 manufacturing options in locations outside the Greater China region.

建立這家新工廠的決定是對客戶對供應鏈彈性和區域多元化日益增長的擔憂的直接回應，特別是對大中華地區以外地區先進多層 PCB 製造方案的需求。

The new facility in Malaysia will support customers in our commercial markets such as networking, data center computing and medical, industrial and instrumentation.

馬來西亞的新工廠將為網路、資料中心運算以及醫療、工業和儀器等商業市場的客戶提供支援。

We continue to make progress on the Malaysian facility with all major processes now running, and we are currently sampling product to customers for qualification.

我們繼續在馬來西亞工廠取得進展，所有主要流程現已運行，並且我們目前正在向客戶提供產品樣品以進行資格認證。

I'd also like to update you on the consolidation of our manufacturing footprint.

我還想向您介紹我們製造業務整合的最新情況。

We previously announced our plan to close three small manufacturing facilities in order to improve total plant utilization, operational performance, customer focus and profitability during the course of 2023, PCB manufacturing operations in Anaheim and Santa Clara, California and Hong Kong were closed and consolidated into TTM. remaining facilities.

我們先前宣布計劃關閉三個小型製造工廠，以提高工廠總利用率、營運績效、客戶關注度和盈利能力，並在2023 年期間關閉位於加利福尼亞州阿納海姆和聖克拉拉以及香港的PCB 製造業務並整合為TM。剩餘設施。

We ceased production at our Hong Kong manufacturing facility during the second quarter.

我們在第二季停止了香港製造工廠的生產。

Anaheim in the third quarter and Santa Clara at the end of 2023, we are presently ramping production for the transferred parts and receiving facilities throughout our North America footprint.

第三季在阿納海姆，2023 年底在聖克拉拉，我們目前正在北美地區提高轉移零件和接收設施的產量。

Finally, I would like to update you on the previous announcement of our intent to expand our advanced technology capability for the aerospace and defense market through the construction of a new facility immediately adjacent to our Syracuse New York campus.

最後，我想向您通報我們先前宣布的最新情況，即我們打算透過在緊鄰雪城紐約校區的地方建造一座新設施來擴大我們在航空航太和國防市場的先進技術能力。

Our proposed new facility will bring disruptive domestic production of high technology, Ultra HDIPCV.s in support of national security requirements.

我們提議的新工廠將帶來顛覆性的高科技 Ultra HDIPCV.s 國內生產，以支持國家安全要求。

This new facility is expected to focus on high-technology PCB production in North America, providing customers with reduced lead times and a significant increase in domestic capacity for Ultra HDIPCV. provided, we are able to complete discussions with various stakeholders regarding their support for this facility.

該新工廠預計將專注於北美的高科技 PCB 生產，為客戶縮短交貨時間，並大幅增加國內 Ultra HDIPCV 產能。只要我們能夠與各利益相關者就他們對該設施的支持進行討論即可。

We anticipate that we will be prepared to break ground in the first half of 2024 with initial production within 18 months after groundbreaking Phase one of the proposed project, including capital for campus-wide improvements, is estimated to be 100 to 130 million and is anticipated to run through 2026 with TTM's final capital investment commitments determined after finalizing terms with various stakeholders.

我們預計，我們將準備在2024 年上半年破土動工，並在破土動工後的18 個月內進行初步生產。擬議項目的第一階段，包括校園範圍內改善的資金，估計為100 至1.3 億美元，預計到 2026 年，TTM 的最終資本投資承諾將在與各利益相關者敲定條款後確定。

Now I'd like to review our end markets, which are referenced on page 4 of the earnings presentation on our website.

現在我想回顧一下我們的終端市場，我們網站上的收益演示第 4 頁引用了這些市場。

The aerospace and defense end market represented 46% of total fourth quarter sales compared to 40% of Q4 2022 sales and 45% of sales in Q3 2023.

航空航太和國防終端市場佔第四季總銷售額的 46%，而 2022 年第四季銷售額為 40%，2023 年第三季銷售額為 45%。

The solid demand in the defense market is a result of a positive tailwind in previous defense budgets, our strong strategic program alignment and key bookings for ongoing franchise programs.

國防市場的強勁需求是先前國防預算的積極推動力、我們強大的戰略計劃調整以及正在進行的特許經營計劃的關鍵預訂的結果。

At the end of the fourth quarter, our A&D program backlog was 1.3 billion during the quarter, we saw significant bookings for a key restricted program.

截至第四季末，我們的 A&D 專案積壓量為 13 億，我們看到關鍵受限專案的預訂量很大。

We expect sales in Q1 from this end market to also represent about 46% of our total sales coming off a seasonally high Q4 for the full year.

我們預計第一季來自該終端市場的銷售額也將占我們全年總銷售額的 46% 左右，第四季將達到全年季節性高點。

Aerospace and defense revenues grew 17%, primarily due to a full year of Telephonics in 2023 compared to six months in 2022.

航空航太和國防收入成長了 17%，主要得益於 2023 年全年的電話業務，而 2022 年為六個月。

Excluding that impact, organic growth was 6%.

排除此影響，有機成長率為 6%。

In 2024, we expect end market growth to be above longer-term market projections of 3% to 5%.

到 2024 年，我們預計終端市場成長將高於 3% 至 5% 的長期市場預測。

Sales in the data center computing end market represented 17% of total sales in the fourth quarter compared to 14% in Q4 of 2022 and 17% in the third quarter of 2023.

資料中心計算終端市場的銷售額佔第四季總銷售額的 17%，而 2022 年第四季為 14%，2023 年第三季為 17%。

This end market performed better than we expected and saw 15% year-on-year growth due to strength in our data center customers.

由於我們資料中心客戶的實力，該終端市場的表現優於我們的預期，較去年同期成長 15%。

Building products for regenerative AI applications.

建構用於再生人工智慧應用的產品。

We expect revenues in this end market to represent approximately 17% of first quarter sales.

我們預計該終端市場的營收將佔第一季銷售額的 17% 左右。

For the full year, data center computing declined 16% due to inventory corrections for semiconductor and data center customers early in the year, following 17% growth in 2020 to 25% growth in 2021 and 9% in 2020 and 2024, we expect to be above the longer-term end market growth of 4% to 7%, driven primarily by generative AI applications.

就全年而言，由於年初半導體和資料中心客戶的庫存調整，資料中心計算下降了 16%，繼 2020 年增長 17% 至 2021 年增長 25%、2020 年和 2024 年增長 9% 後，我們預計高於4% 至7% 的長期終端市場成長，主要由生成型人工智慧應用推動。

The medical industrial instrumentation end market contributed 16% of our total sales in the fourth quarter compared to 17% in the year ago quarter and 16% in the third quarter of 2023 The year-over-year decline was caused primarily by inventory reductions at a number of our customers, particularly in the industrial and instrumentation areas.

醫療工業儀器終端市場佔第四季總銷售額的 16%，去年同期為 17%，2023 年第三季為 16%。年減主要是由於庫存減少。我們的客戶數量，特別是在工業和儀器儀表領域。

For the first quarter, we expect MINI to be 16% of revenues.

對於第一季度，我們預計 MINI 將佔營收的 16%。

For the full year, MINI. declined 25% due to the inventory correction at many customers and weak demand from semiconductor test companies following 16.7% growth in 2020 to 11.5% growth in 2021 and 12.4% growth in 2020, well above industry forecasts, three years in a row as we took advantage of megatrends and faster faster-growing subsegments of this end market in 2024, we expect growth to be in line with the 2% to 4% longer term industry forecast for this end market, Automotive sales represented 15% of total sales during the fourth quarter of 2023 compared to 16% in the year ago quarter and 15% during the third quarter of 2023.

全年來看，MINI。由於許多客戶的庫存調整和半導體測試公司的需求疲軟，2020 年增長 16.7%，2021 年增長 11.5%，2020 年增長 12.4%，下降了 25%，遠高於行業預測，我們連續三年預測憑藉2024年該終端市場的大趨勢和更快成長的細分市場的優勢，我們預計該終端市場的成長將與2% 至4% 的長期產業預測一致，第四季汽車銷售額佔總銷售額的15 % 2023 年第四季的成長率為 16%，2023 年第三季為 15%。

Year over year decline for automotive was due primarily to continued inventory adjustments at several customers.

汽車產業年減主要是由於一些客戶的庫存持續調整。

We expect our automotive business to contribute 14% of total sales in Q1 due to typical seasonality in the first quarter from the lunar new Year and ongoing demand softness for the full year, automotive decreased 16% due to the inventory correction that automotive customers in 2023 advanced technology was 36% of our automotive end market compared to 31% in 2022 due to strong growth in our HDI. and RADAR product areas.

由於農曆新年之後第一季的典型季節性以及全年持續的需求疲軟，我們預計我們的汽車業務將佔第一季總銷售額的14%，由於汽車客戶2023 年的庫存調整，汽車業務下降了16%由於 HDI 的強勁成長，先進技術占我們汽車終端市場的 36%，而 2022 年這一比例為 31%。和雷達產品領域。

In 2023, we won new designs with a lifetime value of 608 million compared to 530 million in 2022.

2023 年，我們贏得的新設計的生命週期價值為 6.08 億美元，而 2022 年為 5.3 億美元。

Designs that we are winning this year will contribute to revenues in future years.

我們今年贏得的設計將為未來幾年的收入做出貢獻。

We expect this market in 2024 to be below longer-term forecasts of 3% to 5% as customers continue to adjust inventories in light of ongoing demand softness, networking accounted for 6% of revenue during the fourth quarter of 2023.

我們預計該市場在 2024 年將低於 3% 至 5% 的長期預測，因為客戶根據持續的需求疲軟繼續調整庫存，網路佔 2023 年第四季營收的 6%。

This compares to 13% in the fourth quarter of 2022 and 7% of revenue in the third quarter of 2023.

相比之下，2022 年第四季佔營收的 13%，2023 年第三季佔營收的 7%。

Demand was softer as customers continue to focus on inventory digestion as well as weak end market demand.

由於客戶持續專注於庫存消化以及終端市場需求疲軟，需求疲軟。

As a reminder, the Shanghai backplane business, which we sold in our second quarter contributed approximately 12 million sales in this segment in the fourth quarter of 2022.

提醒一下，我們在第二季出售的上海背板業務在 2022 年第四季為該細分市場貢獻了約 1,200 萬美元的銷售額。

In Q1, we expect this end market to be 7% of revenues.

在第一季度，我們預計該終端市場將佔營收的 7%。

For the full year, networking declined 46% due to inventory correction at both networking and telecom customers as well as weak demand at telecom customers.

由於網路和電信客戶的庫存調整以及電信客戶的需求疲軟，全年網路業務下降了 46%。

In addition, we sold the Shanghai BPA facility in Q2 of 2023 that had 45 million revenues in 2022 compared to 8 million in 2023.

此外，我們於 2023 年第二季出售了上海 BPA 設施，該設施在 2022 年的收入為 4,500 萬美元，而 2023 年為 800 萬美元。

We expect this market to be below longer-term forecast of 2% to 5% growth in 2024 due to the softer start of the year.

由於今年開局較為疲軟，我們預計該市場 2024 年的成長率將低於 2% 至 5% 的長期預測。

And next, I'll cover some details from the fourth quarter.

接下來，我將介紹第四季的一些細節。

This information is also available on Page 5 of our earnings presentation.

此資訊也可在我們的收益簡報的第 5 頁上找到。

During the quarter, our advanced technology and engineered products business, which includes HDI, rigid-flex, RF subsystems and components and Engineered Systems accounted for approximately 47% of our revenue.

本季度，我們的先進技術和工程產品業務（包括 HDI、剛柔結合板、射頻子系統和組件以及工程系統）約占我們收入的 47%。

This compares to approximately 39% in the year-ago quarter and 47% in Q3.

相比之下，去年同期約為 39%，第三季約為 47%。

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.

我們將繼續尋求新的商機並增加客戶設計參與活動，這些活動將在新項目和新市場中利用我們的先進技術和工程產品能力。

Pcb capacity utilization in Asia Pacific was 51% in Q4 compared to 69% in the year-ago quarter and 46% in Q. three.

第四季亞太地區 PCB 產能利用率為 51%，去年同期為 69%，第三季為 46%。

Our overall PCB capacity utilization in North America was 35% in Q4 compared to 41% in the year ago quarter and 38% in Q. three.

第四季我們在北美的整體 PCB 產能利用率為 35%，去年同期為 41%，第三季為 38%。

The lower year-over-year 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 as well as a greater mix of higher technology product that requires less finished plating.

亞太地區較去年同期下降的原因是產量下降，而北美地區較去年同期下降的原因是電鍍產能增加以及高科技產品的增加需要較少的成品電鍍。

As a reminder, North America utilization figures are not as meaningful as Asia Pacific, because bottlenecks in these volume facilities tend to occur in areas outside of plating, which is the core process that we use in calculating utilization rates.

提醒一下，北美的使用率數據不如亞太地區那麼有意義，因為這些批量設施的瓶頸往往發生在電鍍以外的區域，電鍍是我們計算利用率時使用的核心流程。

Our top five customers contributed 44% of total sales in the fourth quarter of 2023 compared to 43% in the third quarter of 2023.

我們的前五名客戶貢獻了 2023 年第四季總銷售額的 44%，而 2023 年第三季為 43%。

We had two customers over 10% of our total sales in the quarter.

我們有兩個客戶佔本季總銷售額的 10% 以上。

At the end of Q4, our 90 day backlog, which is subject to cancellations, was 575.9 million compared to 603.1 million at the end of four of the fourth quarter last year.

截至第四季末，我們的 90 天積壓訂單（可能被取消）為 5.759 億件，而去年第四季末的 6.031 億件為 6.031 億件。

Our book-to-bill ratio was 0.88 for the three months ended January first.

截至 1 月 1 日止的三個月，我們的訂單出貨比為 0.88。

Now Dan will review our financial performance for the fourth quarter.

現在丹將回顧我們第四季的財務表現。

Dan?

擔？

Thanks Tom, and good morning, everyone.

謝謝湯姆，大家早安。

I will review our financial results for the fourth quarter that were included in the press release distributed today as well as on Slide 6 of the earnings presentation posted on our website.

我將回顧我們第四季度的財務業績，這些業績包含在今天發布的新聞稿中以及我們網站上發布的收益簡報的幻燈片 6 中。

For the fourth quarter, net sales were $569 million compared to 617.2 million in the fourth quarter of 2022.

第四季的淨銷售額為 5.69 億美元，而 2022 年第四季的淨銷售額為 6.172 億美元。

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

年比下降的原因是我們的汽車、醫療、工業、儀器和網路終端市場的下降，但部分被我們的資料中心計算、航空航太和國防終端市場的成長所抵消。

The sale of our BPA facility in Q2 2023, as well as the previously announced PCB plant consolidation also contributed to the decline in net sales.

2023 年第二季出售 BPA 工廠以及先前宣布的 PCB 工廠合併也導致了淨銷售額的下降。

For the full year, net sales were $2.2 billion compared to $2.5 billion in 2022.

全年淨銷售額為 22 億美元，而 2022 年為 25 億美元。

The 11% decline was driven by declines in our commercial markets, partially offset by growth in our aerospace and defense end market and a full year of the Telephonics acquisition.

11% 的下降是由我們的商業市場的下降推動的，但部分被我們的航空航太和國防終端市場的成長以及全年的 Telephonics 收購所抵消。

The sale of the WPA. facility in Q2 2023, as well as the previously announced PCB plant consolidations also contributed to the decline in net sales.

出售 WPA。 2023 年第二季的工廠建設以及先前宣布的 PCB 工廠合併也導致了淨銷售額的下降。

Gaap operating income for the fourth quarter of 2023 was $34.6 million.

2023 年第四季公認的會計準則營業收入為 3,460 萬美元。

Gaap operating income for the fourth quarter of 2022 was $97.6 million and included a gain of $51.8 million in December 2022 from the sale of the property occupied for us from our former Shanghai EMS entity.

2022 年第四季公認的會計準則營業收入為 9,760 萬美元，其中包括 2022 年 12 月出售我們從前上海 EMS 實體佔用的財產而獲得的 5,180 萬美元收益。

On a GAAP basis, net income in the fourth quarter of 2023 was $17.3 million, or $0.17 per diluted share.

以 GAAP 計算，2023 年第四季淨利為 1,730 萬美元，即稀釋後每股收益 0.17 美元。

This compares to GAAP net income of $6 million or 6% to two per diluted share in the fourth quarter of last year.

相比之下，去年第四季 GAAP 淨利潤為 600 萬美元，即稀釋後每股收益 6% 至 2 倍。

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

我其餘的評論將集中於我們的非公認會計準則財務表現。

Our non-GAAP performance excludes M&A related costs, restructuring costs, certain noncash expense items such as amortization of intangibles, impairment of goodwill and stock compensation gains on the sale of property and other unusual or infrequent items.

我們的非公認會計準則績效不包括併購相關成本、重組成本、某些非現金費用項目，例如無形資產攤銷、商譽減損及出售財產的股票補償收益以及其他不尋常或罕見的項目。

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

我們提供非公認會計準則財務信息，使投資者能夠透過管理層的視角了解公司，以便於與預期和前期進行比較。

Gross margin in the fourth quarter was 21.3% and compares to 19.8% in the fourth quarter of 2022.

第四季的毛利率為 21.3%，而 2022 年第四季的毛利率為 19.8%。

The year-on-year increase was due to a more favorable product mix and improved execution in the North America region, partially offset by lower sales volumes and less premium in our commercial markets.

年比成長是由於北美地區更有利的產品組合和執行力的提高，部分被我們商業市場的銷售下降和溢價下降所抵消。

Selling and marketing expense was 17.8 million in the fourth quarter were 3.1% of net sales versus $18.8 million or 3.0% of net sales a year ago.

第四季銷售和行銷費用為 1,780 萬美元，佔淨銷售額的 3.1%，而去年同期為 1,880 萬美元，佔淨銷售額的 3.0%。

Fourth quarter G&A expense was $34.9 million or 6.1% of net sales compared to $37.4 million or 6.1% of net sales in the same quarter a year ago.

第四季管理及行政費用為 3,490 萬美元，佔淨銷售額的 6.1%，而去年同期為 3,740 萬美元，佔淨銷售額的 6.1%。

In Q4 2023, research and development was $7.3 million or 1.3% of net sales compared to 6.4 million and 1% in a year ago quarter.

2023 年第四季，研發費用為 730 萬美元，佔淨銷售額的 1.3%，去年同期為 640 萬美元，佔淨銷售額的 1%。

Our operating margin in Q4 was 10.7%, which compares to 9.7% in the same quarter last year.

我們第四季的營業利潤率為 10.7%，而去年同期為 9.7%。

Interest expense was $12.9 million in the fourth quarter compared to 12.0 million in the same quarter last year.

第四季利息支出為 1,290 萬美元，而去年同期為 1,200 萬美元。

During the quarter, there was a negative 7.0 million foreign exchange impact below the operating income line, government incentives and interest income of $3.6 million resulted in a net 3.4 million loss were a $0.03 negative impact to EPS.

本季度，營業收入線以下的外匯影響為 700 萬美元，政府激勵措施和利息收入為 360 萬美元，導致淨虧損 340 萬美元，對每股收益產生 0.03 美元的負面影響。

This compares to a net loss of 2.0 million or a $0.02 impact on EPS in Q4 last year.

相比之下，去年第四季淨虧損 200 萬美元，每股收益受影響 0.02 美元。

Our effective tax rate was 4.1% in the fourth quarter, resulting in tax expense of $1.9 million, which compares to a tax rate of 6.5% for tax expense of 2.9 million in the prior year.

第四季我們的有效稅率為 4.1%，稅費為 190 萬美元，而前一年的稅率為 6.5%，稅費為 290 萬美元。

Fourth quarter net income was $43.0 million or $0.41 per diluted share.

第四季淨利為 4,300 萬美元，或攤薄後每股收益 0.41 美元。

This compares to fourth quarter 2022 net income of $42.7 million or $0.41 per diluted share.

相比之下，2022 年第四季淨利潤為 4,270 萬美元，即稀釋後每股收益 0.41 美元。

Adjusted EBITDA for the fourth quarter was 80.9 million of 14.27% of net sales compared with Q4 2022 adjusted EBITDA of $81.6 million or 13.2% of net sales.

第四季調整後 EBITDA 為 8,090 萬美元，佔淨銷售額的 14.27%，而 2022 年第四季調整後 EBITDA 為 8,160 萬美元，佔淨銷售額的 13.2%。

Depreciation for the fourth quarter was $25.1 million.

第四季折舊額為 2,510 萬美元。

Net capital spending for the quarter was 46.0 million.

該季度淨資本支出為 4600 萬美元。

Cash flow from operations in the fourth quarter of 2023 was $47.5 million.

2023 年第四季營運現金流為 4,750 萬美元。

We repurchased 784,000 shares of common stock for $9.8 million at an average price of $12.52 per share.

我們以 980 萬美元的價格回購了 784,000 股普通股，平均價格為每股 12.52 美元。

Cash and cash equivalents at the end of 2023 totaled $450 million.

截至 2023 年底，現金及現金等價物總額為 4.5 億美元。

Our net debt divided by last 12 months EBITDA was 1.6 times at the low end of our targeted range of 1.5 to 2 times.

我們的淨債務除以過去 12 個月的 EBITDA 為 1.6 倍，處於我們目標範圍 1.5 至 2 倍的下限。

For the full year, cash flow from operations was $187.3 million or 8.4% of net sales.

全年營運現金流為 1.873 億美元，佔淨銷售額的 8.4%。

Free cash flow for the full year was $27.5 million or 1.2% of net sales as we invested in our main facility.

由於我們投資了主要設施，全年自由現金流為 2,750 萬美元，佔淨銷售額的 1.2%。

Now I will turn to our guidance for the first quarter of 2024.

現在我將談談我們對 2024 年第一季的指導。

We project net sales for the first quarter of 2024 to be in the range of 530 to $570 million and non-GAAP earnings to be in the range of $0.24 to $0.3 per diluted share, which is inclusive of costs associated with starting up our funding facility.

我們預計 2024 年第一季的淨銷售額將在 53 至 5.7 億美元之間，非 GAAP 稀釋每股收益將在 0.24 至 0.3 美元之間，其中包括與啟動我們的融資設施相關的成本。

The EPS forecast is based on diluted share count of approximately 104 million shares, which includes the dilutive effect of outstanding stock options and other stock awards.

EPS預測是基於約1.04億股的稀釋股數，其中包括已發行股票選擇權和其他股票獎勵的稀釋效應。

We expect SG&A expense to be about 9.9% of net sales in the first quarter and R&D to be about 1.2% of net sales.

我們預計第一季銷售及管理費用將佔淨銷售額的 9.9% 左右，研發費用將佔淨銷售額的 1.2% 左右。

We expect interest expense of approximately $12.3 million and interest income of approximately $2 million.

我們預計利息支出約 1,230 萬美元，利息收入約 200 萬美元。

Finally, we estimate our effective tax rate to be between 12% and 16%.

最後，我們估計我們的有效稅率在 12% 到 16% 之間。

Further, we expect to record depreciation of approximately $25 million, amortization of approximately 14 million, stock-based compensation expense of approximately $5 million and non-cash interest expense of approximately $0.5 million.

此外，我們預計折舊約 2,500 萬美元，攤提約 1,400 萬美元，股票補償費用約 500 萬美元，非現金利息費用約 50 萬美元。

And finally, I'd like to announce that we were participating in the Cowen Aerospace and Defense Conference in Washington, D.C. on February 13th, the JPMorgan Global High Yield and Leveraged Finance Conference in Miami on February 27th, and the JPMorgan Industrials Conference in New York on March 12th.

最後，我想宣布，我們將參加2 月13 日在華盛頓特區舉行的考恩航空航天和國防會議、2 月27 日在邁阿密舉行的摩根大通全球高收益和槓桿金融會議以及2 月27 日在紐約舉行的摩根大通工業會議。3 月 12 日，約克。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Now we'd like to open the line for questions.

現在我們想開通提問熱線。

Operator?

操作員？

Thank you.

謝謝。

As a reminder, if you would like to ask a question, please press star one on your telephone as well.

提醒一下，如果您想提問，也請按電話上的星號一。

Please wait for your name to be announced before you proceed with your questions.

請等待您的名字被公佈，然後再繼續提問。

One moment while we compile the Q&A roster.

我們正在編制問答名冊。

Our first question for today will come from Jim Ricchiuti of Needham & Company.

我們今天的第一個問題將來自 Needham & Company 的 Jim Ricchiuti。

Your line is open.

您的線路已開通。

I think you have good the good morning.

我想你早上好。

I was on the automotive side, Tom, any sense as to the duration of this inventory drawdown that you're seeing with the Tier ones?

我是在汽車行業，湯姆，你對你在一級汽車中看到的庫存減少的持續時間有什麼感覺嗎？

And to what extent are you seeing some weakness also just on some of the softness on the EV side in the US in Europe.

您在多大程度上看到了美國和歐洲電動車方面的一些疲軟情況。

Are you seeing any signs of that?

你看到任何跡象了嗎？

Yes.

是的。

Thanks, Joe. So overall, on automotive, this is one of the markets that I think is relatively soft.

謝謝，喬。總的來說，在汽車領域，我認為這是相對疲軟的市場之一。

We are seeing year-on-year declines in all three major regions, particularly in Asia.

我們看到所有三個主要地區的同比下降，特別是在亞洲。

And just as a reminder, we tend to in China our volume tends to go to joint ventures that are that are joint ventures of Tier ones, Western World Tier ones, if you will, in China.

提醒一下，我們在中國傾向於將我們的銷售流向合資企業，這些合資企業是一線企業、西方世界第一線企業在中國的合資企業。

So I think they are feeling the impact there on EV.s. And if you look into the Americas and Europe, less.

所以我認為他們正在感受到對電動車的影響。如果你看看美洲和歐洲，你會發現更少。

So I think we're still seeing a better demand climate there, though it is still down year on year.

因此，我認為我們仍然看到那裡的需求環境更好，儘管仍同比下降。

So certainly a combination of ongoing demand, some demand softness and ongoing inventory controls as customers adjust their forecasts.

因此，隨著客戶調整預測，持續的需求、部分需求疲軟以及持續的庫存控制肯定是結合在一起的。

So hopefully that gives you it gives you an answer there, Jim?

所以希望這能給你一個答案，吉姆？

Yes, that's helpful.

是的，這很有幫助。

And Dan, maybe a question for use as my follow up, Tom, and I apologize, you may have referenced it, but can you as we think about the scale up in Penang, how much of a headwind is that in Q1 to gross margins?

丹，也許是我的後續問題，湯姆，我很抱歉，你可能已經提到過它，但是當我們考慮檳城的擴張時，你能想到第一季度對毛利率有多大的阻力嗎？ ？

And maybe how does that how do you see that easing as we go through the year?

也許您如何看待這一年的寬鬆政策？

Sure.

當然。

Thanks for the question.

謝謝你的提問。

We did see.

我們確實看到了。

So historically, we were in 2023, you mentioned about 30 to 50 basis points headwind on M&A and that is pretty much what we experienced through the end of the year going into the new year in 2024.

從歷史上看，我們在 2023 年，您提到了併購方面大約 30 到 50 個基點的逆風，這幾乎就是我們從年底到 2024 年新年所經歷的情況。

It's got a little bit higher than that.

比這個還高一點點。

Probably going to be about 50 to 75 basis points for the first half of the year and then easing towards the towards the end, we think will breakeven towards Q4, although that might slip into Q1 of next year.

上半年可能會達到約 50 至 75 個基點，然後到年底會有所緩解，我們認為第四季度將實現盈虧平衡，儘管這可能會滑入明年第一季。

But we do see them headwinds for 50 to 70 basis points for the first half of the year and an easing in the second half.

但我們確實看到它們在上半年面臨 50 至 70 個基點的阻力，而在下半年則有所緩解。

Got it.

知道了。

Thank you.

謝謝。

I'll get back in the queue.

我會回到隊列中。

Canadian.

加拿大人。

Thank you, McLaren.

謝謝你，麥克拉倫。

Next question and our next question will be coming from Mike Crawford of B. Riley Securities.

下一個問題，也是我們的下一個問題，將由 B. Riley Securities 的 Mike Crawford 提出。

Your line is open, but do you in your data center end market, how much of that vertical revenue would you attribute to generative AI and who are your customers there?

您的產品線是開放的，但是您在資料中心終端市場中，您將垂直收入的多少歸因於生成式人工智慧以及您的客戶是誰？

Yes.

是的。

So we don't we don't talk about specific customers, but let me answer your general question there.

因此，我們不談論特定客戶，但讓我回答您的一般性問題。

The generative AI. continues to be to grow as a portion of the data center computing end market.

生成式人工智慧。作為資料中心計算終端市場的一部分，其持續成長。

So you can probably remember that that traditionally we've looked at this end market as being Yes, slightly over 50% data center, slightly less than 50% semiconductor today with the semiconductor softness, combined with the strength we're seeing in data center, you're looking at really close to 75% data center demand, 25% semiconductor and of that data center.

所以你可能還記得，傳統上我們認為這個終端市場是，略高於 50% 的資料中心，略低於 50% 的半導體，今天半導體的軟性，加上我們在資料中心看到的實力，您看到的是非常接近75% 的資料中心需求，以及該資料中心的25% 的半導體需求。

We're well over now 50% of that data center being generative AI driven, and that's, I think, a function of really strong demand for generative AI as well as perhaps some shift in cap capital expenditures away from traditional data center to two more generative AI.

現在，我們的資料中心中有超過50% 是由生成式AI 驅動的，我認為，這是對生成式AI 的強勁需求的結果，也可能是資本支出上限從傳統資料中心轉移到另外兩個數據中心的結果。生成式人工智慧。

So I so we're just seeing a combination there but certainly our terrific guys strength, ongoing strength in that generated a high portion of the data center computing end market for us.

所以我所以我們只是看到了那裡的組合，但肯定是我們出色的人員的實力，持續的實力為我們創造了數據中心計算終端市場的很大一部分。

Okay.

好的。

Thanks, Tom.

謝謝，湯姆。

And then shifting gears and I know you don't like to talk about customers by name, but in a recent blog posts, you referenced a radar screen emulator that that's a product of Keysight Technologies that you worked with them to design and supply.

然後換檔，我知道您不喜歡談論客戶的名字，但在最近的一篇部落格文章中，您提到了一個雷達螢幕模擬器，它是德科技的產品，您與他們合作設計和提供。

And I'm just wondering how many other types of engagements like that where you're really getting in early with the customer to help not only win business, but design product before you win that business?

我只是想知道還有多少其他類型的活動是這樣的，您真正能儘早與客戶接觸，不僅可以幫助贏得業務，而且可以在贏得業務之前設計產品？

Yes.

是的。

Thank you, Mike.

謝謝你，麥克。

As you know, it's really it is absolutely a critical part of our strategy.

如您所知，這確實是我們策略的關鍵部分。

And if you look at how we've deliberately built our defense portfolio product portfolio.

如果你看看我們是如何精心建構我們的國防產品組合的。

It really is all about that early engagement and working with our customers on the defense side of our business, which now of course, is close to 50% of the business, working very closely with the customers as they start to develop specifications for programs and that that involvement some critical to us as we look at radar systems for sure.

這實際上是關於我們業務防禦方面的早期參與和合作，當然，現在我們的業務已接近 50%，當客戶開始開發程序和規範規範時，與客戶密切合作。當我們研究雷達系統時，這種參與對我們來說至關重要。

But as we've gotten more involved with customers at the engineering level, as they look at specifications, that engagement, of course, crosses into other programs as well.

但是，隨著我們在工程層面與客戶更多互動，當他們查看規格時，這種參與當然也會涉及其他項目。

So I'm really pleased with how that strategy is developing on the aerospace and defense side of the business on the commercial side of the business, as you as you highlighted, they're also really critical as a differentiator for TTM.

因此，我對這項策略在航空航太和國防業務以及商業業務方面的發展感到非常滿意，正如您所強調的那樣，它們作為 TTM 的差異化因素也非常重要。

We like to engage with the engineers engaged with the engineers as they're developing their requirements, and that's becoming more and more critical, right as they as they start to drive speeds right there, they're driving higher and higher speeds that is intended.

我們喜歡與工程師接觸，因為他們正在開發他們的需求，這變得越來越重要，當他們開始提高速度時，他們正在駕駛越來越高的速度，這是預期的。

And they're also looking at shrinking real estate right in terms of number of lines and spacing density and becoming critical to them in order to populate more and more components onto the printed circuit board.

他們還考慮在線路數量和間距密度方面縮小空間，這對他們來說至關重要，以便將越來越多的元件安裝到印刷電路板上。

And they as they as they drive those elements of the technology.

他們推動了科技的這些要素。

They're also starting to see that there that there are potential limitations on the printed circuit board side that they need to work very closely with a supplier such as TTM around that combination of lines and spacing, material choices that they make and then the ability to provide the kind of durability in product architecture that most of our applications require.

他們也開始看到印刷電路板方面存在潛在的限制，他們需要與 TTM 等供應商圍繞線路和間距的組合、他們所做的材料選擇以及能力進行密切合作。提供我們大多數應用所需的產品架構的耐用性。

And so that combination requires intimacy right from a customer standpoint.

因此，從客戶的角度來看，這種結合需要親密性。

So we are very involved now with the as with the engineers at our customers.

因此，我們現在與客戶的工程師密切合作。

That's a critical part of our commercial strategy as well.

這也是我們商業策略的重要組成部分。

Okay, thank you.

好的謝謝。

And then as a final question, I know you've just provided 1Q guidance, but that is for the year, CTSI grows the top line low single digits.

最後一個問題，我知道您剛剛提供了第一季的指導，但那是今年的情況，CTSI 的營收成長了低個位數。

And I know there's a lot of moving parts with Penang and Syracuse, but who would you expect working capital to be it drives free cash flow or to what extent.

我知道檳城和錫拉丘茲有很多變化，但你希望誰的營運資金能推動自由現金流或在多大程度上推動自由現金流。

So I'll have Dan answer the specific working capital question.

所以我會讓丹回答具體的營運資金問題。

I just wanted to highlight if you looked at if you look at revenues.

我只是想強調一下，如果你看看收入的話。

And starting with Q4, remember that we were we were closed.

從第四季度開始，請記住我們已經關閉了。

We've been closing plants and shifting production freight and also that we sold our Shanghai BPA assembly facility.

我們一直在關閉工廠並轉移生產貨運，並且還出售了上海 BPA 組裝工廠。

So if you look at the combined impact of the closed plants and the BPA facility in the fourth quarter, that was about 25 million, right in the first quarter.

因此，如果你看看第四季度關閉工廠和 BPA 設施的綜合影響，你會發現第一季的影響約為 2500 萬。

We're looking at a combined impact of about 27 million.

我們正在研究約 2700 萬人的綜合影響。

So if you look at our at our guidance, pick the midpoint, you would see that that we're growing about 5% year on year if you exclude those factors.

因此，如果您查看我們的指導，選擇中點，您會發現如果排除這些因素，我們的同比增長率約為 5%。

And so that that's really at a critical point here now we are in the process of ramping the receiving plants, but that takes time as we finish qualifications and begin ramp.

因此，這確實是一個關鍵點，現在我們正在對接收工廠進行擴產，但這需要時間，因為我們完成資格認證並開始擴產。

So in the meantime, there's a little bit of trough on revenue there.

因此，同時，那裡的收入出現了一些低谷。

And then through the course of the year, where as we have moved equipment and are ramping at the receiving facilities will be really removing that, that slight revenue drag.

然後在這一年中，隨著我們移動設備並增加接收設施，將真正消除這種輕微的收入拖累。

So I just wanted to highlight that on the revenue side, Dan, that working capital and.

所以我只想強調一下收入方面，丹，營運資金和。

Sure.

當然。

Thank you.

謝謝。

You know, obviously with revenue increasing, yes, you will you should have a relative increase in working capital.

你知道，顯然隨著收入的增加，是的，你的營運資金應該會相對增加。

And Howard, right.

還有霍華德，對吧。

We have challenged ourselves a bit to reduce our overall working capital as we go into the next year as we budgeted this current year.

正如我們今年的預算一樣，我們在進入明年時對自己提出了一些挑戰，以減少我們的整體營運資金。

And BCAR. kind of went up quite a bit at year end.

還有BCAR。年底上漲了不少。

Some of that was some deliveries in our IE. area and A. and D., so some So if they are not quite up quite a bit.

其中一些是在我們的 IE 中進行的交付。區域和 A. 和 D.，所以一些所以如果他們沒有完全上升很多。

So we meet monthly to kind of manage that.

所以我們每個月開會來解決這個問題。

And we're really pushing hard to reduce where we can our AR balance.

我們確實在努力減少 AR 平衡。

We manage our inventory appropriately and then push out our average payable days to the extent we can as well.

我們適當地管理我們的庫存，然後盡可能延長我們的平均應付天數。

So we're really working that down hard this year, I believe, like I said, it'll Yes, normally, we'll go off with revenue increases but I think we're a little high now and we're going to challenge ourselves to bring working capital down a bit and increase our cash flow to get back to that target of 10% cash on 10% of revenues in our cash.

所以我們今年確實在努力降低這一點，我相信，就像我說的，是的，通常情況下，我們會增加收入，但我認為我們現在有點高，我們將挑戰自己，稍微降低營運資本並增加現金流，以回到現金收入佔收入10% 的目標，即10% 現金。

Great.

偉大的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

One moment for our next question and our next question will be coming from William Stein of Truist Securities.

我們的下一個問題請稍等一下，我們的下一個問題將來自 Truist Securities 的 William Stein。

Your line is open.

您的線路已開通。

Great.

偉大的。

Thanks for taking my questions.

感謝您回答我的問題。

First, I just want to recognize you already answered the question on inventory where I mistaken, we had too high in inventory days calculation of my note, apologies for that.

首先，我只想認識到您已經回答了我錯誤的庫存問題，我們的筆記中的庫存天數計算過高，對此表示歉意。

The question, the questions relate to two areas.

這個問題涉及兩個領域。

First, you're guiding overall revenue for the business, both you now and you gave the details by end market, but it's still fairly remarkable to me considering what everyone else in the tech supply chain, especially in semis is doing now and any insight as to how you're able to be guiding like this given the way everyone else is still seeing a pretty some significant correction.

首先，您正在指導業務的整體收入，您現在和您都按終端市場提供了詳細信息，但考慮到技術供應鏈中的其他人（尤其是半成品）現在正在做的事情以及任何見解，這對我來說仍然相當引人注目鑑於其他人仍然看到相當大的重大調整，你如何能夠像這樣進行指導。

Survey Thank you for the question.

調查 謝謝您的提問。

Well, the of So I think first of all, recognizing that that of course, A. and D. is roughly 46%, 47% of revenue and so there, if you're you know, if you're looking sequential, we're down slightly and that's mainly just as we yes, Q4 tends to be a seasonally high quarter for us in that in that A. and D. market.

嗯，所以我認為首先，認識到當然，A. 和 D. 大約佔收入的 46%、47%，所以，如果你知道，如果你按順序查看，我們略有下降，這主要是因為我們是的，第四季往往是我們在A. 和D. 市場中的季節性高季度。

So that let's just say that that deal there that was set that one aside.

所以我們只能說，那筆交易被擱置了。

So now we're really talking about the commercial market.

所以現在我們真正在談論的是商業市場。

And certainly with TTM is as we look at a data center, that continues to be a big driver that that generated a high demand.

當然，對於 TTM 來說，當我們看待資料中心時，它仍然是產生高需求的重要驅動力。

So that that is that's very helpful.

這非常有幫助。

We do have Chinese New Year, as you know.

如你所知，我們確實有中國新年。

And so sequentially, we're always going to be down in commercial Q4 to Q1 as plants as we shut down plants and Chinese New Year.

因此，隨著我們關閉工廠和農曆新年，我們的商業第四季到第一季的工廠數量總是會下降。

And in that general semi area, of course, we're trying to operate as much as we can during Chinese New Year.

當然，在那個一般的半區域，我們正在努力在農曆新年期間盡可能多地運作。

So that that accounts for a little bit, certainly from a TTM perspective of why that drop might not be as great a Q4 to Q1 from automotive.

因此，從 TTM 的角度來看，這確實解釋了為什麼汽車產業的下降幅度可能沒有第四季到第一季那麼大。

I think you're seeing that and with others as well is down sequentially a little bit more than just the Chinese New Year factor.

我想你已經看到了這一點，其他人也都看到了連續下降的情況，而不僅僅是中國新年因素。

And then if you look at medical industrial instrumentation, we're just seeing medical holding up pretty well in Q1 and into portions of instrumentation getting a bit better as well.

然後，如果你看看醫療工業儀器，我們會發現醫療在第一季表現良好，部分儀器也有所改善。

So that's how and remember there that our North America footprint does play an important role.

因此，請記住，我們在北美的足跡確實發揮著重要作用。

So And so while we're shutting down in China, we are operating in our North America facilities.

因此，當我們關閉在中國的工廠時，我們仍在北美工廠運作。

And so able to mitigate that again, a little bit of that, that sequential decline.

因此能夠再次緩解這種連續下降的情況。

And then finally, in the networking area, we're relatively flattish.

最後，在網路領域，我們相對平坦。

I'm glad to see that.

我很高興看到這一點。

I think that for us, that's a function of some of our networking customers now still dealing with inventories.

我認為對我們來說，這是我們的一些網路客戶現在仍在處理庫存的功能。

We expect that to continue through the first half, but at least they sort of hit bottom and starting to see a little bit better demand there.

我們預計這種情況將持續到上半年，但至少他們已經觸底並開始看到那裡的需求有所改善。

So again, hard for me to comment on others will.

再說一次，我很難評論別人的意願。

But hopefully that gives you a flavor of what of what we're seeing.

但希望這能讓您了解我們所看到的情況。

And then my follow-up, I'd like to ask about the margin improvement that we're seeing.

然後我想問我們所看到的利潤率改善情況。

You beat in Q4, you're guiding nicely, but consensus in Q1.

你在第四季度擊敗了你，你的指導很好，但在第一季達成了共識。

Can you talk about margin improvement?

能談談利潤率的改善嗎？

If I'm if I were to split it bluntly into two categories.

如果我直截了當地把它分成兩類。

One is sort of the product mix and the growth in non AI applications, which I'm sure is helping, but I know there's a lot of self-help going on as well restructuring and such.

一是產品組合和非人工智慧應用程式的成長，我確信這會有所幫助，但我知道有很多自助以及重組等正在進行中。

Can you potentially divide it into those two buckets, which one is having a greater impact on your business.

您能否將其分為這兩個部分，哪一個對您的業務影響更大？

So between the data center generator of AI. improvements versus closure of last year's closure of the facilities.

所以資料中心之間的AI生成器。與去年關閉設施的關閉相比有所改善。

Is that where you where you're at?

那是你現在所在的地方嗎？

Yes.

是的。

And any other changes that are more company specific or operations specific as opposed to me?

還有其他與我相比更具體的公司特定或營運特定的變化嗎？

Well, I think well, in North America A. and D., the integrated electronics business has expanded their margins quite a bit.

嗯，我認為，在北美 A. 和 D.，整合電子業務已經大大擴大了利潤。

This is the first full year that we've had Telephonics in our business.

這是我們在業務中使用電話技術的第一年。

We've worked hard on the supply chain there.

我們在那裡的供應鏈上做了很多努力。

And we've also increased and improved our pricing on those products to run to get much better margins on the integrated electronics business.

我們還提高和改善了這些產品的定價，以便在整合電子業務上獲得更好的利潤。

And that's obviously, a strategic focus to us, as Tom mentioned, and the earlier, we can get involved and engaged in engineering and helping our customers that's more value value-added work, right?

正如湯姆所提到的，這顯然是我們的策略重點，而且越早，我們就可以參與工程並幫助我們的客戶，這是更有價值的增值工作，對嗎？

So that's been strong.

所以這很強大。

I'd say we had across North America and our PCB business also just very good productivity this year on better productivity than we had last year.

我想說，我們在整個北美地區和 PCB 業務今年的生產力也非常好，比去年更好。

So keeping good flow through the factories and getting good at getting efficiencies that way.

因此，保持工廠的良好流動並善於透過這種方式提高效率。

And then on we probably had.

然後我們可能就有了。

So those are probably the two largest drivers.

所以這可能是兩個最大的驅動因素。

So it's more operational and we did have a DB accretion, as you mentioned, good, some good improvement from the generative, a commodity mix, but that you have in that more than offset some of the softness in those commercial markets, the other commercial markets.

因此，它更具可操作性，我們確實增加了資料庫，正如您所提到的，很好，從生成、商品組合方面取得了一些良好的改進，但您在這方面的表現足以抵消這些商業市場的一些疲軟，其他商業市場市場。

But I'd say net-net, you know, that wasn't the largest driver, but certainly that continued strength going forward.

但我想說，網絡，你知道，這不是最大的驅動力，但肯定是未來的持續成長勢頭。

And then probably in the last bit of that was just yet the drag that we had from the three plants that we closed down that did improve this year.

最後一點可能是我們關閉的三家工廠帶來的拖累今年確實有所改善。

You have in Q1, Q1 go into Q1 versus last year, probably about 5 million of improvement just from that.

與去年相比，第一季、第二季可能有大約 500 萬的改進。

Thank you.

謝謝。

And just one additional highlight a number that Dan, earlier answer to Jim's question regarding Penang.

再強調一點，丹早前回答了吉姆關於檳城的問題。

So that so we are seeing those improvements in it as we ramp Penang and take on additional headwinds.

因此，當我們提升檳城並承受額外的阻力時，我們會看到這些改進。

Great.

偉大的。

Thank you.

謝謝。

Thank you.

謝謝。

One moment for the next question.

請稍等一下，回答下一個問題。

And our next question will be coming from Matt Sheerin of Stifel.

我們的下一個問題將來自 Stifel 的 Matt Sheerin。

Your line is open.

您的線路已開通。

Yes, thank you.

是的，謝謝。

A question regarding the expansion in Malaysia.

關於馬來西亞擴張的問題。

Could you remind us what the revenue capacity will be as you ramp in and what would look like fully ramped?

您能否提醒我們，當您投入使用時，收入能力會是多少，以及全面增加時的收入能力會是多少？

And is that how much of that is incremental revenue versus some production shifting from China or other areas?

與從中國或其他地區轉移的部分生產相比，其中有多少是增量收入？

Sure.

當然。

So we're looking at full capacity, which we won't reach until next year, we're looking at it somewhere between 180,000,200 million dollars.

因此，我們正在考慮滿載生產，要到明年才能達到，我們正在考慮 180,000,2 億美元之間的水平。

And that depends on product mix, of course, in the facility.

當然，這取決於工廠內的產品組合。

So that you think about, you know, roughly 15, that percent or so being at least as we plan this coming from a shift out of China into Penang.

所以你想想，你知道，大約 15%，至少按照我們的計劃，這個百分比是從中國轉移到檳城的。

I would like to highlight that our China facilities where we do the most advanced technology work.

我想強調的是，我們在中國的工廠從事最先進的技術工作。

So the sooner we can get Penang up and running and shift that production, the better it is for us from a standpoint of serving that that generates a high demand.

因此，我們越早讓檳城啟動並運行並轉移生產，從服務產生高需求的角度來看，對我們來說就越好。

And so we certainly are driving to get Penang up as soon as we can.

因此，我們當然會盡快推動檳城的發展。

But we have to make sure that ensure that we have the right kind of quality performance and the right quality systems in place as a as we go through that ramp.

但我們必須確保，當我們通過這個坡道時，我們擁有正確的品質績效和正確的品質系統。

But that's roughly the order of magnitude, Matt.

但這大致上是一個數量級，馬特。

And again, hitting full capacity, we're going to be continuing that ramp as we go through the course of next year, but hitting that full capacity level by the end of next year.

再次強調，為了達到滿載生產，我們將在明年繼續這一成長，但到明年年底達到滿載生產水準。

Okay.

好的。

I'm sorry.

對不起。

Was that was that one 5% or 5%?

那是5%還是5%？

One five.

一五。

One five.

一五。

So the rest would be new program wins?

那麼剩下的將是新計劃的勝利？

That's correct.

這是正確的。

Yes.

是的。

So remember, the facility is that as designed is targeted at 16 to 18 layers.

所以請記住，該設施的設計目標是 16 至 18 樓。

And that layer count is what we think of as standard technology.

該層數就是我們所認為的標準技術。

We don't do all that much standard technology now and in our China plant.

我們現在和我們的中國工廠並沒有採用那麼多標準技術。

So that's what we're opening up as a supply chain resiliency opportunity for our customers to move that product from other suppliers to our Penang facility.

這就是我們為客戶提供的供應鏈彈性機會，將產品從其他供應商轉移到我們的檳城工廠。

That's the major goal.

這是主要目標。

Now how to help with startup?

現在如何幫助啟動？

That's where that 15% boost confidence that we are there.

這就是 15% 增強我們的信心的地方。

They're allowing us to move some product out of out of China into Penang.

他們允許我們將一些產品從中國轉移到檳城。

But it's the bulk of this is a combination of new programs and existing programs that may be that our customers are looking to move out of China into a non-China production facility.

但其中大部分是新計劃和現有計劃的組合，我們的客戶可能希望將其從中國轉移到非中國的生產設施。

Got it.

知道了。

Okay.

好的。

Thank you for that.

謝謝你。

And then regarding the plans to expand in Syracuse.

然後是關於在錫拉丘茲擴張的計劃。

You said that some of the expansion plans is contingent on stakeholders sort of buying in and I'm not sure exactly what you mean by that.

您說某些擴張計劃取決於利害關係人的認可，我不確定您的具體意思。

Does that mean that you need to have certain purchasing commitments or any co-investments on what do you mean by that?

這是否意味著您需要做出某些購買承諾或任何共同投資？這是什麼意思？

So really, we're looking primarily for us the customer, very the customers very supportive based on long-term agreements when we're in good shape there.

所以實際上，我們主要尋找的是客戶，當我們狀況良好時，客戶會根據長期協議給予我們非常支持。

We just as we look at that, that CapEx requirements, particularly as we look at potential government funding, we need to make sure that that our time line is in sync with the potential for ag for government funding, I and that and also that we make sure that we're in sync with customer requirements in terms of ramp schedule.

正如我們所看到的那樣，資本支出要求，特別是當我們考慮潛在的政府資金時，我們需要確保我們的時間線與政府資金的農業潛力同步，我以及我們確保我們在斜坡時間表方面與客戶要求保持同步。

So that's really what we're talking about now.

這就是我們現在正在討論的。

Got it.

知道了。

Okay.

好的。

All right.

好的。

Thanks very much.

非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

And we have a follow-up question coming in.

我們有一個後續問題。

There will be a follow-up question from Jim Ricchiuti of Needham & Company.

Needham & Company 的 Jim Ricchiuti 將提出後續問題。

Your line is open.

您的線路已開通。

John, you referenced I think a sizable booking on the defense side, and I think you said it was related to a restricted program, but I'm wondering, can you say or did you say whether that relates to the legacy and the TTM defense business or was that in relation to the Telephonics business?

約翰，你提到我認為防守方面有相當大的預訂，我認為你說這與限制計劃有關，但我想知道，你能說或者你說過這是否與遺產和 TTM 防守有關業務還是與電話業務有關？

Can you say that.

你能這麼說嗎？

I really can't Jevic.

我真的不能傑維奇。

Okay.

好的。

You're correct.

你是對的。

I did not say that, but yes, as a large booking, unfortunately, we just we just can't disclose the product type or the exact program that we're involved in there.

我沒有這麼說，但是，是的，作為一個大預訂，不幸的是，我們只是無法透露產品類型或我們參與的確切計劃。

Got it.

知道了。

Understand up moving to the MI business.

了解轉向 MI 業務。

Follow-up question is yes, you're clearly seeing some weakness.

後續問題是肯定的，您顯然看到了一些弱點。

You've been seeing weakness in the instrumentation side of that business related to semi.

您已經看到與半相關業務的儀器儀表方面的弱點。

Is that this is kind of at a trough level, do you think?

您認為這是否處於低谷水平？

Because we are I think many of us are anticipating an upturn in the semi cap side of the business over the next couple of quarters, but I'm wondering what your take is on that.

因為我認為我們中的許多人都預計未來幾季半上限業務將出現好轉，但我想知道您對此有何看法。

Yes, sure.

是的，當然。

And I did want to just to complete the thought on A. And B, I just did want to highlight we are down slightly on program backlog.

我確實想完成對 A 的思考。而 B，我只是想強調我們在計劃積壓方面略有下降。

So we're at 1.33 billion to be exact in terms of program backlog, that's down from 1.35 billion at the end of last quarter.

因此，準確地說，就計劃積壓而言，我們的數量為 13.3 億，低於上季末的 13.5 億。

So it's still holding up very well.

所以它仍然保持得很好。

And we're looking at what should be a pretty a pretty strong first half year as we look at program booking opportunities in A. and D. on the MI side?

當我們考慮 MI 方面 A. 和 D. 的節目預訂機會時，我們正在考慮上半年應該會相當強勁？

Yes.

是的。

So what I'm saying, Jim and remember, we're looking at test and burn-in board requirements.

所以我想說的是，吉姆，請記住，我們正在考慮測試和老化板要求。

So slightly different in a different cycle than the traditional large, you know, large semiconductor capital equipment requirements.

因此，在不同的週期中，與傳統的大型半導體資本設備需求略有不同。

Of course, we service those equipment companies as well.

當然，我們也為這些設備公司提供服務。

But it's a it's a smaller portion of that instrumentation piece and so we tend to be a little bit up front end there as customers start to invest in new generation of capability.

但這只是儀器的一小部分，因此當客戶開始投資新一代功能時，我們往往會走在前端。

They need that test and burn-in board base to for their for their equipment.

他們需要為他們的設備提供測試和老化板底座。

So what I can tell you, Jim, is certainly I think we we've hit trough there.

所以，吉姆，我可以告訴你的是，我認為我們已經觸底了。

We're again seeing some activity there that are good that are good indicators and I agree with how you characterized it.

我們再次看到一些好的活動，這些活動都是很好的指標，我同意你的描述。

I expect that there would be more momentum towards the back half of the year.

我預計下半年會有更多動力。

And certainly as we look at the larger process equipment requirements and which right now are in that trough.

當然，當我們考慮更大的製程設備需求時，哪些設備目前正處於低谷。

I wouldn't expect to see that until that kind of demand until Q4 ish.

我預計直到第四季左右才會出現這種需求。

But in the meantime, tests and burn-in board requirements, which go into the test and measurement area 10 tend at least for us to come in a bit earlier than that.

但同時，進入測試和測量區域 10 的測試和老化板要求至少對我們來說會比這更早。

So yes, I think, again, the trough for sure, starting to see a bit of activity that are good indicators that the back in the back half should that improve.

所以，是的，我認為，肯定會再次進入低谷，開始看到一些活動，這些活動是很好的指標，表明後半區應該會有所改善。

Got it.

知道了。

And if I could slip one quick one in you been providing last couple of quarters, some breakdown on the B&E business, commercial, aerospace and defense, which I think we all appreciate.

如果我可以快速向您提供過去幾個季度的 B&E 業務、商業、航空航天和國防方面的一些詳細信息，我想我們都會對此表示讚賞。

I was curious on commercial air, it looked like it was down sequentially.

我對商業空氣很好奇，看起來它是連續下降的。

Is that just kind of a lumpy business or is there anything that we should be paying attention to in that part of that A. and D. business.

這只是一個不穩定的業務嗎？還是說在 A. 和 D. 業務的這一部分中我們應該注意什麼？

Actually commercial air for us is still strong.

其實我們的商業氛圍還是很濃厚的。

And I and if you know, if we so roughly three up about seven percentage, seven percentage points year on year, and that's a year on year and also up slightly quarter on quarter in commercial aerospace.

我想，如果你知道的話，如果我們大約增長了三個百分點，同比增長了七個百分點，這是商業航空航天領域的同比增長，也是逐季度略有增長。

So we so we've so yes, the growth rate, which was remarkable, right, as commercial aerospace recovered.

因此，隨著商業航空航太業的復甦，我們的成長率是驚人的，對吧。

That growth rate has slowed down, but we did still see growth in the quarter.

該成長率已經放緩，但我們仍然看到本季的成長。

It still as a percentage of A&D, revenue remains about five percentage points.

從佔 A&D 的比例來看，收入仍維持在五個百分點左右。

It's so not a large part, but nice to see ongoing growth there.

這雖然不是很大的一部分，但很高興看到那裡的持續成長。

And just a reminder for everyone, our largest content here, it tends to be on the seven 87 and so that's where we see the largest content, of course, were across platforms, but that's the big the major content for us.

提醒大家，我們這裡最大的內容往往是在 7 87 上，所以這就是我們看到最大內容的地方，當然，是跨平台的，但這對我們來說是主要內容。

Got it.

知道了。

Thanks for clarifying and congrats on the quarter.

感謝您的澄清並祝賀本季。

Thanks, Jim.

謝謝，吉姆。

Thank you.

謝謝。

That concludes our Q&A session for today.

我們今天的問答環節到此結束。

And I would now like to turn the call over to Tom Edman for closing remarks.

現在我想將電話轉給湯姆·艾德曼（Tom Edman）做總結發言。

Please go ahead.

請繼續。

Thank you, Ed. I'll just close by summarizing some of the points I made earlier.

謝謝你，艾德。最後我將總結我之前提出的一些觀點。

First, we delivered non-GAAP EPS that was above the high end of the guided range with revenues in line with the guided range, really excellent operational performance and favorable product mix.

首先，我們的非公認會計原則每股收益高於指導範圍的高端，收入符合指導範圍，非常出色的營運績效和有利的產品組合。

Second, we generated a healthy cash flow from operations at 8.3% of revenue that did allow us to repurchase stock, maintain a solid balance sheet.

其次，我們的營運產生了健康的現金流，佔收入的 8.3%，這確實使我們能夠回購股票，並保持穩健的資產負債表。

And finally, in closing, I would like to thank our employees again for their efforts in this past year.

最後，我要再次感謝我們的員工在過去一年所做的努力。

Our customers as well, and certainly you our investors for your continued support.

我們的客戶也是如此，當然還有我們的投資者，感謝您的持續支持。

Thank you very much.

非常感謝。

This concludes today's conference call.

今天的電話會議到此結束。

You may all disconnect.

你們都可以斷開連線。