TTM Technologies Inc (TTMI) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to the TTM Technologies first quarter 2024 financial results conference call.

感謝您的耐心等待，歡迎參加 TTM Technologies 2024 年第一季財務業績電話會議。

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。

After the speaker presentation, there will be a question-and-answer session.

演講者演講結束後，將進行問答環節。

(Operator Instructions) Please be advised that today's conference is being recorded on May 1, 2024.

（操作員說明）請注意，今天的會議錄製日期為 2024 年 5 月 1 日。

I would now like to turn the conference over to your host, Mr. Sameer Desai, TTM's Vice President of Corporate Development and Investor Relations who'll now review TTM's disclosure statement.

現在我想將會議轉交給您的東道主，TTM 企業發展和投資者關係副總裁 Sameer Desai 先生，他現在將審查 TTM 的披露聲明。

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 risk and uncertainties, including the risk factors we provide in our filings with the Securities and 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，包括我們在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 不承擔任何義務公開更新或修改任何這些前瞻性陳述，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 and we direct you to the reconciliation between GAAP and non-GAAP measures included in the company's earnings release, which is available on the Investor Relations section of TTM's website at investors.ttm.com. We've also posted on that website a slide deck that we will refer to during our call.

此類措施不應被視為替代根據GAAP 準備和提出的措施，我們會引導您查看公司收益報告中包含的GAAP 和非GAAP 措施之間的對賬，該報告可在TTM 網站的投資者關係部分找到在 Investors.ttm.com 上。我們還在該網站上發布了幻燈片，我們將在通話期間參考。

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 afternoon, and thank you for joining us for our first quarter 2024 conference call.

下午好，感謝您參加我們的 2024 年第一季電話會議。

I'll begin with a review of our business highlights from the quarter and a discussion of our first 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我們第一季的業績，然後總結我們的業務策略。

Dan Bailey, our CFO, will follow with an overview of our Q1 2024 financial performance and our Q2 2024 guidance.

我們的財務長 Dan Bailey 隨後將概述我們 2024 年第一季的財務業績和 2024 年第二季的指導。

We will then open the call to your questions.

然後我們將開始電話詢問您的問題。

Highlight to the quarter's financial results are summarized on Slide 3 of the earnings presentation posted on TTM's website.

TTM 網站上發布的收益簡報的幻燈片 3 總結了本季財務表現的要點。

We delivered a solid quarter, and I would like to thank our employees for their hard work and contributions in support of these results.

我們交付了一個穩定的季度業績，我要感謝我們的員工為支持這些成果所做的辛勤工作和貢獻。

In the first quarter of 2024, non-GAAP earnings per share were above the high end of the guided range and demonstrated solid year-on-year growth due to improved operating performance and favorable product mix.

2024 年第一季度，非 GAAP 每股收益高於指導範圍的高端，並且由於經營業績改善和有利的產品組合而實現了穩健的同比增長。

Revenues were at the high end of the previously guided range and returned to year-on-year growth due to demand strength from our aerospace and defense and data center computing end markets, which was partially 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需求強勁，收入處於先前指導範圍的高端，並恢復了同比增長，但部分被我們的醫療、工業低於預期的業績所抵消以及儀器儀表和汽車終端市場。

Demand in our aerospace and defense market, which was 46% of revenues for the quarter, continues to be solid as we registered a positive book-to-bill in the quarter and now have a program backlog of approximately $1.38 billion.

我們的航空航太和國防市場的需求佔本季度收入的 46%，該市場的需求繼續保持強勁，因為我們在本季度實現了積極的訂單出貨比，目前項目積壓約為 13.8 億美元。

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.

TTM 正在努力將我們的業務轉型為更少的周期性和更具差異化的業務。

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.

在過去的幾年裡，TTM 一直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 transactions in the aerospace and defense end market through the acquisitions of Anaren and Telephonics, over 50% of our revenues in aerospace and defense are now generated from engineered and integrated electronic products with PCBs contributing less than 50% overall.

由於透過收購 Anaren 和 Telephonics 在航空航太和國防終端市場進行了戰略交易，我們在航空航太和國防領域超過 50% 的收入現在來自工程和整合電子產品，而 PCB 的整體貢獻不到 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, to service our customers in our commercial end markets.

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建造一座最先進、高度自動化的 PCB 製造工廠，為商業終端市場的客戶提供服務。

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 ongoing customer audits and qualification sampling occurring, and with our test panel yields climbing.

我們繼續在馬來西亞工廠取得進展，進行持續的客戶審核和資格抽樣，我們的測試面板產量不斷攀升。

I was thrilled to welcome customers, vendors and government officials to our grand opening event in Penang, which was held on April 25.

我很高興歡迎客戶、供應商和政府官員參加我們於 4 月 25 日在檳城舉行的盛大開幕活動。

We expect our Penang facility to register limited revenues in the second quarter and ramp further in the second half with investments in phase two expansion of the facility starting towards the end of the year.

我們預計我們的檳城工廠在第二季度的收入有限，並在下半年進一步增加，並從年底開始投資工廠的第二階段擴建。

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.

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、客戶關注度和獲利能力。

During the course of 2023, PCB manufacturing operations in Anaheim and Santa Clara, California and Hong Kong were closed and consolidated into TTM's remaining facilities.

2023 年期間，位於加州阿納海姆和聖克拉拉以及香港的 PCB 製造業務將關閉，並併入 TTM 的剩餘工廠。

We are presently on track and are ramping production for the transferred parts and receiving facilities throughout North America and Asia Pacific.

目前，我們已步入正軌，正在提高整個北美和亞太地區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 existing Syracuse, New York campus.

最後，我想向您通報我們先前宣布的最新情況，即我們打算透過緊鄰我們現有的紐約錫拉丘茲園區建設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。

This new facility will focus on specialized high-technology PCB production, providing customers with reduced lead times and a significant increase in domestic capacity for Ultra-HDI PCBs in support of increasing national security requirements for high technology PCBs.

該新工廠將專注於專業化高科技 PCB 生產，為客戶縮短交貨時間，並顯著提高國內超 HDI PCB 產能，以支持國家對高科技 PCB 日益增長的安全要求。

Provided we are able to complete discussions with various stakeholders regarding their support for this facility, we anticipate that we will be prepared to break ground in the first half of 2024 with initial low-rate production expected to follow within 18 months after groundbreaking.

如果我們能夠與各利益相關者就他們對該設施的支持完成討論，我們預計我們將準備在 2024 年上半年破土動工，預計在破土動工後 18 個月內進行初步低產量生產。

As previously announced, we expect the investment for phase one of the proposed project, including capital for campus-wide improvements to be in the range of between $100 million to $130 million and is anticipated to run through 2026 with TTM's capital investment commitments determined after finalizing terms with various stakeholders.

正如先前宣布的那樣，我們預計擬議項目第一階段的投資（包括校園範圍內改善的資本）將在1 億至1.3 億美元之間，預計將持續到2026 年，TTM 的資本投資承諾將在最終確定後確定。

To date, we have secured the land for this facility and applied for various government incentive packages in support of future equipment purchases.

迄今為止，我們已獲得該設施的土地，並申請了各種政府獎勵計劃以支持未來的設備採購。

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 first quarter sales compared to 43% of Q1 2023 sales and 46% of sales in Q4 2023.

航空航太和國防終端市場佔第一季總銷售額的 46%，而 2023 年第一季銷售額為 43%，2023 年第四季銷售額為 46%。

Th solid demand in the defense market is a result of a positive tailwinds in previous defense budgets, our strong 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、我們強有力的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。

We had a strong bookings quarter with a book-to-bill ratio of 1.2, leading to an A&D program backlog of approximately $1.38 billion at the end of the first quarter.

我們的預訂季度表現強勁，預訂出貨比為 1.2，導致第一季末 A&D 專案積壓約 13.8 億美元。

During the quarter, we saw significant bookings for the F-16 scalable, agile, beam radar or SABR program.

本季度，我們看到 F-16 可擴展、敏捷、波束雷達或 SABR 專案的大量預訂。

Javelin missile program and a key restricted program.

標槍飛彈計劃和一項關鍵限制計劃。

We expect sales in Q2 from this end market to represent about 44% of our total sales.

我們預計第二季該終端市場的銷售額將占我們總銷售額的 44% 左右。

Bookings in the aerospace and defense market ship over a longer period of time than in our commercial markets and provide good visibility into future revenue growth.

航空航太和國防市場的預訂出貨時間比我們的商業市場更長，並且可以很好地了解未來的收入成長。

Sales in the data center computing end market represented 21% of total sales in the first quarter compared to 10% in Q1 of 2023 and 17% in the fourth quarter of 2023.

資料中心計算終端市場的銷售額佔第一季總銷售額的 21%，而 2023 年第一季為 10%，2023 年第四季為 17%。

This end market performed better than expected and saw 106% year on year growth due to strength in our data center customers building products for generative AI applications.

由於我們的資料中心客戶為生成式人工智慧應用建立產品的實力，該終端市場的表現優於預期，較去年同期成長 106%。

We expect revenues in this end market to represent 20% of second quarter sales.

我們預計該終端市場的營收將佔第二季銷售額的 20%。

The medical industrial instrumentation end market contributed 14% of our total sales in the first quarter compared to 19% in the year ago quarter and 16% in the fourth quarter of 2023.

醫療工業儀器終端市場占我們第一季總銷售額的 14%，而去年同期為 19%，2023 年第四季為 16%。

The year-over-year decline was caused primarily by inventory reductions at a number of our customers, particularly in the industrial and instrumentation areas.

年比下降主要是由於我們許多客戶的庫存減少造成的，特別是在工業和儀器儀表領域。

However, we are beginning to see generative AI driving growth in the DRAM market, which is leading to increased purchases of automated test equipment.

然而，我們開始看到生成式人工智慧推動 DRAM 市場的成長，這導致自動化測試設備的購買量增加。

For the second quarter, we expect the medical, industrial, instrumentation end market to be 15% of revenues.

對於第二季度，我們預計醫療、工業、儀器儀表終端市場將佔營收的15%。

Automotive sales represented 13% of total sales during the first quarter of 2024 compared to 17% in the year ago quarter and 15% during the fourth quarter of 2023.

2024 年第一季汽車銷售佔總銷售量的 13%，去年同期為 17%，2023 年第四季為 15%。

The year-over-year decline for automotive was due primarily to continued inventory adjustments and soft demand at several customers.

汽車業務年減主要是由於持續的庫存調整和一些客戶的需求疲軟。

We expect our automotive business to contribute 14% of total sales in Q2.

我們預計汽車業務將佔第二季總銷售額的 14%。

Networking accounted for 6% of revenue during the first quarter of 2024.

2024 年第一季度，網路業務佔營收的 6%。

This compares to 11% in the first quarter of 2023 and 6% of revenue in the fourth quarter of 2023.

相比之下，2023 年第一季佔營收的 11%，2023 年第四季佔營收的 6%。

Demand was softer as customers continue to focus on inventory digestion and experienced 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 first quarter of 2023, contributed approximately $8 million in sales to this segment in the first quarter of 2023.

提醒一下，我們在 2023 年第一季出售的上海背板業務在 2023 年第一季為該細分市場貢獻了約 800 萬美元的銷售額。

In Q2, we expect this end market to be 7% of revenue.

在第二季度，我們預計該終端市場將佔營收的 7%。

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

接下來，我將介紹第一季的一些細節。

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 48% 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 48%。

This compares to approximately 41% in the year ago quarter and 47% in Q4.

相比之下，去年同期約為 41%，第四季約為 47%。

We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advance technology and engineered product 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，這些活動將在新專案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 52% in Q1 compared to 52% in the year ago quarter and 51% in Q4.

第一季亞太地區 PCB 產能利用率為 52%，去年同期為 52%，第四季為 51%。

Utilization rates were suppressed due to weak demand in several of our commercial markets.

由於我們的幾個商業市場的需求疲軟，利用率受到抑制。

Our overall PCB capacity utilization in North America was 38% in Q1, compared to 39% in the year ago quarter and 35% in Q4.

第一季我們在北美的整體 PCB 產能利用率為 38%，去年同期為 39%，第四季為 35%。

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

提醒一下，北美的利用率數據不如亞太地區那麼有意義，因為這些高混合、低產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的核心過程。

Our top five customers contributed 42% of total sales in the first quarter of 2024, compared to 44% in the fourth quarter of 2023.

我們的前五名客戶貢獻了 2024 年第一季總銷售額的 42%，而 2023 年第四季為 44%。

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 Q1, our 90-day backlog, which is subject to cancellations, was $592.6 million compared to $482.2 million at the end of the first quarter last year.

截至第一季末，我們的 90 天積壓訂單（可能被取消）為 5.926 億美元，而去年第一季末為 4.822 億美元。

Our book-to-bill ratio was 1.15 for the three months ended April 1.

截至 4 月 1 日的三個月，我們的訂單出貨比為 1.15。

Now, Dan will review our financial performance for the first quarter.

現在，丹將回顧我們第一季的財務表現。

Dan?

擔？

Thanks, Tom, and good afternoon, everyone.

謝謝湯姆，大家下午好。

I will review our financial results for the first quarter that were included in the press release distributed today and are summarized on Slide 6 of the earnings presentation posted on our website.

我將回顧我們第一季的財務業績，這些業績包含在今天發布的新聞稿中，並在我們網站上發布的收益簡報的幻燈片 6 中進行了總結。

For the first quarter, net sales were $570.1 million, compared to $544.4 million in the first quarter of 2023.

第一季淨銷售額為 5.701 億美元，而 2023 年第一季淨銷售額為 5.444 億美元。

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

年比成長是由於我們的資料中心運算以及航空航太和國防終端市場的成長，部分被我們的汽車、醫療、工業和儀器儀表以及網路終端市場的下降所抵消。

GAAP operating income for the first quarter of 2024 was $17.1 million as compared with a GAAP operating loss of $3.5 million for the first quarter of 2023.

2024 年第一季的 GAAP 營業收入為 1,710 萬美元，而 2023 年第一季的 GAAP 營業虧損為 350 萬美元。

On a GAAP basis, net income in the first quarter of 2024 was $10.5 million, or $0.10 per diluted share.

根據 GAAP 計算，2024 年第一季淨利潤為 1,050 萬美元，即稀釋後每股收益 0.10 美元。

This compares to GAAP net loss of $5.8 million or $0.06 per diluted share in the first quarter of last year.

相比之下，去年第一季 GAAP 淨虧損為 580 萬美元，即稀釋後每股虧損 0.06 美元。

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

我其餘的評論將集中於我們的非公認會計準則財務表現。

Our non-GAAP performance 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.

我們的非公認會計原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、商譽減損和股票補償、出售財產的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 in 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，以便於與前期預期進行比較。

Gross margin in the third quarter was 18.8% and compares to 17.1% in the first quarter of 2023.

第三季的毛利率為 18.8%，而 2023 年第一季的毛利率為 17.1%。

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 volume and less premium sales in some 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，部分被一些商業市場的銷售下降和溢價銷售減少所抵消。

Selling and marketing expense was $19.4 million in the first quarter or 3.4% of net sales versus $20.6 million or 3.8% of net sales a year ago.

第一季的銷售和行銷費用為 1,940 萬美元，佔淨銷售額的 3.4%，而去年同期為 2,060 萬美元，佔淨銷售額的 3.8%。

First quarter G&A expense was $40 million for 7% of net sales, compared to $32.1 million or 5.9% of net sales in the same quarter a year ago.

第一季管理及行政費用為 4,000 萬美元，佔淨銷售額的 7%，而去年同期為 3,210 萬美元，佔淨銷售額的 5.9%。

In the first quarter of 2024, research and development was $7 million or 1.2% of net sales, compared with $6.8 million or 1.3% of net sales in the same quarter last year.

2024 年第一季，研發費用為 700 萬美元，佔淨銷售額的 1.2%，去年同期為 680 萬美元，佔淨銷售額的 1.3%。

Our operating margin in the first quarter of 2024 was 7.1%, a 100 basis points increase from 6.1% in the same quarter last year.

我們2024年第一季的營業利益率為7.1%，比去年同期的6.1%成長了100個基點。

Interest expense was $11.8 million in the first quarter of 2024, compared to $12.1 million in the same quarter last year.

2024 年第一季利息支出為 1,180 萬美元，去年同期為 1,210 萬美元。

During the current year quarter, there was a positive $4.4 million foreign exchange impact below the operating income line.

本季度，營業收入線以下的外匯影響為 440 萬美元。

Government incentives and interest income totaling $4.8 million, resulting in a net $9.2 million gain for an $0.08 positive impact to EPS.

政府激勵和利息收入總計 480 萬美元，淨收益 920 萬美元，對 EPS 產生 0.08 美元的正面影響。

This compares to a net gain of $1.2 million or a $0.01 impact to EPS in the same quarter of last year.

相比之下，去年同期淨收益為 120 萬美元，對 EPS 的影響為 0.01 美元。

Our effective tax rate was 14% in the first quarter, resulting in tax expense of $5.3 million.

第一季我們的有效稅率為 14%，稅金支出為 530 萬美元。

This compares to a rate of 17% for a tax expense of $3.8 million in the same quarter last year.

相比之下，去年同一季度的稅費為 380 萬美元，稅率為 17%。

First quarter 2024 net income was $32.8 million or $0.31 per diluted share.

2024 年第一季淨利為 3,280 萬美元，或攤薄後每股收益 0.31 美元。

This compares to first quarter 2023 net income of $18.6 million or $0.18 per diluted share.

相比之下，2023 年第一季淨利潤為 1,860 萬美元，即稀釋後每股收益 0.18 美元。

Adjusted EBITDA for the first quarter of 2024 was $74.8 million or 13.1% of net sales, compared to the first quarter 2023 adjusted EBITDA of $58.5 million or 10.7% of net sales.

2024 年第一季調整後 EBITDA 為 7,480 萬美元，佔淨銷售額的 13.1%，而 2023 年第一季調整後 EBITDA 為 5,850 萬美元，佔淨銷售額的 10.7%。

Depreciation for the quarter was $24.7 million.

本季折舊額為 2,470 萬美元。

Net capital spending for the quarter was $49.3 million, which is inclusive of the remaining fit-out costs for our Penang facility.

本季的淨資本支出為 4,930 萬美元，其中包括我們檳城工廠的剩餘裝修成本。

Cash flow from operations in the first quarter of 2024 was $43.9 million.

2024 年第一季營運現金流為 4,390 萬美元。

We purchased 600,000 shares of common stock for $9.3 million at an average price of $15.56 per share.

我們以 930 萬美元的價格購買了 60 萬股普通股，平均價格為每股 15.56 美元。

Cash and cash equivalents at the end of the first quarter of 2024 totaled $440.4 million.

截至 2024 年第一季末，現金及現金等價物總額為 4.404 億美元。

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

我們的淨債務除以過去 12 個月的 EBITDA 為 1.5 倍，在我們目標範圍 1.5 倍至 2 倍的低端。

Now I will turn to our guidance for the second quarter.

現在我將談談我們對第二季的指導。

We project net sales for the second quarter of 2024 to be in the range of $560 million to $600 million and non-GAAP earnings to be in the range of $0.32 to $0.38 per diluted share, which is inclusive of operating costs associated with starting up our Penang facility.

我們預計2024 年第二季的淨銷售額將在5.6 億至6 億美元之間，非公認會計原則每股攤薄收益將在0.32 至0.38 美元之間，其中包括與啟動我們的公司相關的營運成本。

The EPS forecast is based on a diluted share count of approximately 105 million shares, which includes the dilutive impact of outstanding stock options and other stock awards.

EPS預測是基於約1.05億股的稀釋股數，其中包括已發行股票選擇權和其他股票獎勵的稀釋影響。

We expect SG&A expense to be about 9.9% of net sales in the second quarter and R&D to be about 1.3% of net sales.

我們預計第二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 1.3% 左右。

We expect interest expense of approximately $12.2 million and interest income of approximately $2 million.

我們預計利息支出約 1,220 萬美元，利息收入約 200 萬美元。

We estimate our effective tax rate would be between 12% and 16%.

我們估計我們的有效稅率將在 12% 至 16% 之間。

Further, we expect to record depreciation of approximately $26.5 million, amortization of approximately $12.6 million, stock-based compensation expense of approximately $5.6 million, and non-cash interest expense of approximately $0.5 million.

此外，我們預計折舊約為 2,650 萬美元，攤提約 1,260 萬美元，股票補償費用約為 560 萬美元，非現金利息費用約為 50 萬美元。

Finally, I'd like to announce that we will be participating in the Barclays Leveraged Finance Conference in Austin on May 21, the B. Riley Institutional Investor Conference in Los Angeles on May 22, and the Stifel Cross Sector Insight Conference in Boston on June 4.

最後，我想宣布，我們將參加 5 月 21 日在奧斯汀舉行的巴克萊槓桿金融會議、5 月 22 日在洛杉磯舉行的 B. Riley 機構投資者會議以及 6 月在波士頓舉行的 Stifel 跨部門洞察會議4.

That concludes our prepared remarks.

我們準備好的演講到此結束。

Now, open the line for questions.

現在，打開提問熱線。

Operator?

操作員？

Thank you.

謝謝。

(Operator Instructions) Matt Sheerin, Stifel.

（操作員說明）Matt Sheerin，Stifel。

Just -- first question, just regarding your guidance, it implies that gross margin will be up over 19% sequentially.

第一個問題，就您的指導而言，這意味著毛利率將持續成長超過 19%。

So good sequential growth there off of a this modest revenue growth.

在如此溫和的收入成長的基礎上，出現瞭如此良好的連續成長。

So I'm wondering if -- is that related to mix at all?

所以我想知道這是否與混音有關？

Or are you also seeing some benefits from the closures of the -- of some of those facilities in the US and in Hong Kong?

或者您也看到了關閉美國和香港的一些設施帶來的一些好處？

Thanks for your question.

謝謝你的提問。

I would say, it's a combination of a few things.

我想說，這是幾件事的結合。

So there's a little bit of mix.

所以有一點混合。

We are seeing some -- you mentioned, we are seeing some benefits of the closures of the [Clover], the three plants from last year.

我們看到了一些——你提到的，我們看到了去年關閉三葉草工廠的一些好處。

We are also -- we are just -- between Q1 and Q2, we got more efficiencies in the factory.

我們也——我們只是——在第一季和第二季之間，我們的工廠效率得到了提升。

Q1 has the impact of the Chinese New Year.

Q1受到農曆新年的影響。

And so with lower volume in AP, we tend to get lower efficiencies, obviously in the factories there just with the covering the overhead -- the operating leverage.

因此，隨著 AP 產量的降低，我們的效率往往會降低，顯然在工廠裡，只是為了彌補管理費用——營運槓桿。

So that is a natural improvement from Q1 to Q2, which is another part of that.

所以這是從第一季到第二季的自然改進，這是其中的另一部分。

Are you still -- and does that also factor in the headwinds that you're seeing from the factory expansion in Penang and is that kay?

您還在嗎？ 這是否也考慮到您在檳城工廠擴張中看到的不利因素，這是可以的嗎？

And what's the headwind there?

那裡的逆風是什麼？

Yeah.

是的。

There's significant headwind there of about 180 basis points for the first half of the year, and then we'll come back to -- in the second half of the year, we'll ramp pretty quickly in the second half of the year to get to about 100 basis points impact on the full year from the Penang headwind, which is kind of what we've expected.

今年上半年約 180 個基點的重大逆風，然後我們會回到 - 在今年下半年，我們將在今年下半年快速增長，以獲得檳城逆風對全年影響約100 個基點，這正是我們的預期。

Okay, helpful.

好的，有幫助。

And then regarding some of the end markets.

然後關於一些終端市場。

Tom, could you elaborate more on the significant growth you're seeing in the datacom area with hyperscale customers?

Tom，您能否詳細說明您在數據通訊領域看到的超大規模客戶的顯著成長？

Could you talk about customer concentration, where you're seeing that in your visibility?

您能談談您在可見度方面看到的客戶集中度嗎？

It looks like you're going to be down a little bit sequentially.

看起來你會依序下降一點。

But could you talk about the visibility that you're seeing for the rest of the year?

但您能談談今年剩餘時間您所看到的可見度嗎？

Yeah.

是的。

So sure.

非常確定。

In terms of sequential, it's really flat sequentially in data center computing.

就順序而言，資料中心計算中的順序確實是平坦的。

And what we're seeing, absolutely, as you pointed out, is strength in generative AI continues to, at this point, be about 50% of that data center demand.

正如您所指出的，我們所看到的，生成式人工智慧的實力目前仍佔資料中心需求的 50% 左右。

A little bit higher than that actually.

比實際高一點點。

And it still remains relatively concentrated, but certainly better than where we were last year when the growth started.

它仍然保持相對集中，但肯定比去年成長開始時的情況要好。

So high level of growth, I think as we start to look at the second half of the year, we're going to continue to look at adding incremental capacity there, both in our major facility that services that area as well as another facility that we're qualifying for some more AI and hyperscale work.

如此高的成長水平，我認為當我們開始展望今年下半年時，我們將繼續考慮增加那裡的增量產能，無論是在我們為該地區提供服務的主要設施中，還是在為該地區提供服務的在另一個設施中。

So we'll look to meet what we expect to be scaling demand there in the second half of the year.

因此，我們將尋求在今年下半年滿足我們預期的擴大需求。

So really strong environment there.

那裡的環境真的很強大。

I also expect that we're going to see semiconductors or the computing part of that data center computing end market start to improve here as we go forward through the course of the year as well.

我還預計，隨著今年的進展，我們將看到半導體或資料中心計算終端市場的計算部分開始改善。

And is there an OEM server market that you also serve as well, where you talked about like enterprise adoption and that sort of thing that will maybe come at some point?

您是否也服務於 OEM 伺服器市場，您談到了企業採用以及可能在某個時候出現的此類事情？

Yeah.

是的。

So that's also a part of the market that we serve there.

所以這也是我們在那裡服務的市場的一部分。

We put that broadly into that data center area.

我們將其廣泛地納入資料中心領域。

But yeah, that is an area that we serve as well.

但是，是的，這也是我們服務的領域。

Jim Ricchiuti, Needham & Co.

吉姆‧里基烏蒂 (Jim Ricchiuti)，李約瑟公司

Maybe just following up on the last question.

也許只是跟進最後一個問題。

If I look at the midpoint of your revenue guidance and the way you're characterizing the vertical market contributions, it seems like you're assuming a nice sequential step up in a couple of markets that were down sequentially in Q1, notably auto and MII.

如果我看一下你們收入指引的中點以及你們描述垂直市場貢獻的方式，似乎你們假設在第一季度連續下降的幾個市場中出現了良好的連續上升，特別是汽車和 MII 。

And maybe, Dan, you may have touched on this, is auto seasonality coming out of the Q1 Chinese New Year and -- or are you seeing some improvement in the outlook there?

也許，丹，你可能已經提到過這一點，汽車季節性是否來自中國新年第一季度，或者你是否看到那裡的前景有所改善？

Same question on MII.

MII 也有同樣的問題。

Tom, you alluded to semi testing of potential bright spots, but what are you seeing in those markets?

湯姆，您提到了對潛在亮點的半測試，但您在這些市場中看到了什麼？

Yeah.

是的。

So Jim, yeah, a couple of things going on there.

吉姆，是的，那裡發生了一些事情。

You're absolutely right.

你是絕對正確的。

In terms of Chinese New Year impact, there is a positive.

就農曆新年的影響而言，這是正面的。

So think about it as a little bit more than a week of production that we bring back in the Q2 that helps with those end markets.

因此，可以將其視為我們在第二季度恢復的一周多一點的生產，這有助於這些終端市場。

Of course, you have to see the demand to absorb that production capacity.

當然，你必須看到吸收該產能的需求。

In auto, we are looking at being sequentially up.

在汽車領域，我們正在尋求順序上升。

I'm not going to read too much into that at this point.

目前我不會對此進行過多解讀。

I think it's certainly encouraging to see some of the booking trends improve there as well as the overall -- if you look at the overall commercial market to have a solid positive book-to-bill.

我認為看到一些預訂趨勢以及整體預訂趨勢的改善無疑是令人鼓舞的——如果你看看整個商業市場，你會發現預訂到帳單的動機。

In the medical, industrial, instrumentation area, you pointed out the area where we are seeing now some incremental return of growth, which is in that instrumentation category, that's primarily semiconductor, capital equipment.

在醫療、工業、儀器領域，您指出我們現在看到一些增量成長回報的領域，這是在儀器儀表類別中，主要是半導體、資本設備。

We're seeing some demand particularly in the test side of that come back.

我們看到一些需求，特別是在測試方面的需求回來了。

And so that is helping on the sequential demand side.

因此，這對連續需求方面有所幫助。

Expecting that kind of momentum to continue as we go into the back half of the year.

預計今年下半年這種勢頭將持續下去。

And I would add networking as well.

我也會加入網路。

We're finally seeing customers work through inventory.

我們終於看到客戶在處理庫存。

Several customers have worked through their inventory challenges, and we're starting to see some incremental improvement in that end market.

一些客戶已經解決了庫存挑戰，我們開始看到該終端市場出現了一些漸進式的改善。

Got it.

知道了。

That's helpful.

這很有幫助。

That actually brings me to the next question to round out that discussion around the verticals.

這實際上讓我想到了下一個問題，以完善圍繞垂直領域的討論。

It looks like you're, again, at the midpoint, assuming -- anticipating a sequential decline in A&D.

看來您再次處於中點，假設 A&D 會連續下降。

And I'm wondering if you could provide some color on that, just given the backlog, given the growth you're seeing?

我想知道您是否可以提供一些信息，考慮到積壓的情況，考慮到您所看到的增長？

How are you thinking about the A&D business looking out over the remainder of the year?

您如何看待 A&D 業務今年剩餘時間的前景？

Yeah, I would not read too much into that.

是的，我不會對此進行太多解讀。

The Q1 A&D end market outperformed our expectations.

第一季 A&D 終端市場的表現超出了我們的預期。

That was mainly the fact that -- as you remember, Q4, generally the strongest quarter that we have in A&D as we finish out the year.

這主要是一個事實——正如你所記得的那樣，第四季度通常是我們在年底時 A&D 領域最強勁的季度。

Q1, usually we have a drop-off.

Q1，通常我們會下車。

We really didn't have a significant drop off here and that was just because we actually, I would say -- I wouldn't say, overproduce, but we certainly were able to maximize production in the A&D. area.

我們確實沒有出現大幅下降，那隻是因為我們實際上，我想說——我不會說，生產過剩，但我們當然能夠最大限度地提高 A&D 的產量。區域。

As we look at Q2, we're sort of expecting more of a normal quarter there in A&D.

當我們審視第二季時，我們預計 A&D 季度將更加正常。

And then as we look towards the -- again, Q3, Q4, we're expecting that Clover -- what we call, Project Clover, the facilities that we shut down, we're expecting that the tailwind there as we bring up the receiving facilities to help to improve the A&D revenues as we go into Q3 and Q4.

然後，當我們再次展望第三季度、第四季度時，我們期待三葉草——我們所說的三葉草項目，我們關閉的設施，我們預計當我們啟動當我們進入第三季度和第四季度時，接收設施有助於提高A&D 收入。

So again, Q2, you're absolutely right, sort of flattish to slightly down.

再說一次，第二季度，你是絕對正確的，有點平坦甚至略有下降。

But expecting Q3, Q4, that capacity to kick in with the receiving facilities.

但預計第三季、第四季，這種能力將在接收設施中發揮作用。

William Stein, Truist Securities.

威廉斯坦，Truist 證券公司。

I wanted to actually hit on some overlapping topics for the last question and that was, your guidance in aerospace defense through this sub-seasonal.

我實際上想針對最後一個問題討論一些重疊的主題，那就是，您在這個次季節期間對航空航天防禦的指導。

I think you sort of just explained it, but I just -- I am reminded what has happened historically when we see book-to-bill very strong in aerospace and defense and the backlog go up, but we know it's sort of long duration backlog.

我想你只是解釋了這一點，但我只是——我想起了歷史上發生的事情，當我們看到航空航天和國防領域的訂單到帳單非常強勁並且積壓不斷增加時，但我們知道這是一種長期的積壓。

And there are quarters when you have the lack of growth where we anticipate more growth because of the good bookings.

在某些季度，當您缺乏成長時，我們預計會因預訂量良好而會出現更多成長。

In the past, it's been related to labor shortages and I wonder if that's still dogging the company in any way or if this is something different.

過去，這與勞動力短缺有關，我想知道這是否仍然以任何方式困擾著公司，或者這是否有所不同。

And so labor is always a factor.

因此，勞動力始終是一個因素。

We're -- that is certainly an area of focus in several of our facilities.

這當然是我們幾個設施的重點領域。

I would say that the headwind we have in A&D continues to be concentrated in supply chain.

我想說，我們在航空與航太領域面臨的阻力仍然集中在供應鏈上。

We're still looking at a headwind of about $8 million quarterly.

我們仍然面臨著每季約 800 萬美元的逆風。

That's about -- that's less than half of where we were a year ago.

這大約是——不到一年前的一半。

But we still do have that headwind to overcome each quarter.

但每季我們仍然需要克服這種阻力。

But really, with our businesses as we stand today, it's about production volumes, how we can get those out.

但實際上，就我們今天的業務而言，問題在於產量，以及我們如何將其生產出來。

And then as you remember, with the addition of Telephonics, we have a percent complete accounting recognition there with mission systems.

然後，正如您所記得的，隨著電話技術的加入，我們在任務系統中完成了百分之一的會計識別。

So that can get a little bit lumpy depending on where we are in the percent complete process.

因此，這可能會變得有點不穩定，這取決於我們在完成過程百分比中的位置。

So those are factors that go beyond sort of where we were traditionally in that business.

因此，這些因素超出了我們傳統的業務範圍。

And so from a labor perspective, absolutely ongoing challenge, but really it's much more of that supply chain situation.

因此，從勞動力的角度來看，這絕對是一個持續的挑戰，但實際上更多的是供應鏈的情況。

And then just a little bit of lumpiness as we ship out on particular programs.

然後，當我們發布特定的程式時，就會出現一點點的混亂。

Tom, the book to bill in the commercial markets was really stronger than it's been in many quarters by my math, but I think you just -- you answered that.

湯姆，根據我的數學計算，這本書在商業市場上的表現確實比許多季度都要強，但我認為你只是——你回答了這個問題。

It sounds like you're expecting revenue to continue to accelerate there in the back half.

聽起來您預計下半年營收將繼續加速。

So let me instead focus on OpEx.

因此，讓我專注於營運支出。

This is an area -- I guess, I was a little surprised that OpEx is up year over year, and I wonder what we should expect going forward?

這是一個領域——我想，我對營運支出逐年上升感到有點驚訝，我想知道我們未來應該期待什麼？

Is there any activity to kind of constrain that going forward?

是否有任何活動可以限制這種情況的發展？

Or are there any unusual things that drove the increase year over year?

或者有什麼不尋常的事情推動了逐年增長嗎？

Thank you.

謝謝。

Thank you for the question.

感謝你的提問。

Well, there were a few one-off items in Q1.

嗯，第一季有一些一次性項目。

There were some personnel related and healthcare related to true-ups in Q1 that were year end accruals that -- our estimates, we had a little bit higher Q1 true ups than we had expected.

有一些與第一季的真實情況相關的人事和醫療保健相關的年終應計費用——我們的估計，第一季的真實情況比我們的預期要高一些。

And then with regards to the Syracuse expansion, we had about $1.5 million application fees that we paid in Q1 that were budgeted for later in the year.

然後，關於雪城大學的擴建，我們在第一季支付了約 150 萬美元的申請費，這些費用已列入今年稍後的預算。

And so the conglomerate of those in the first quarter was about $8.5 million of additional OpEx expense that were -- will not recur.

因此，第一季總共有約 850 萬美元的額外營運支出，這些支出不會再出現。

Those are one-offs.

這些都是一次性的。

But even with that headwind from Penang, we're still up 100 basis points operating margin year over year.

但即使有來自檳城的逆風，我們的營業利潤率仍較去年同期成長 100 個基點。

We're forecasting increasing that up to other another almost 190 basis points in the Q2.

我們預計第二季將再增加近 190 個基點。

So yes, you'll see that come back in the second half of the year, continue to grow.

所以，是的，你會看到它在下半年回歸並繼續增長。

Mike Crawford, B. Riley Securities.

麥克‧克勞福德 (Mike Crawford)，B. 萊利證券 (Riley Securities)。

Could you provide the lifetime value of the automotive program wins you secured in the quarter?

您能否提供您在本季獲得的汽車項目的終身價值？

Sure.

當然。

So not a great quarter in regards to automotive.

因此，對於汽車行業來說，這並不是一個很好的季度。

We had about $20 million in wins in terms of program wins in Q1.

就第一季的計劃勝利而言，我們獲得了大約 2000 萬美元的勝利。

If you look a year ago, we were at $267 million.

如果你看看一年前，我們的市值是 2.67 億美元。

So that's quite a difference, Mike.

所以這是一個很大的區別，麥克。

And as we look at what to attribute that to, it appears that our customers -- and remember, most of our customers are the Tier 1 parts suppliers that -- they're dealing with market turbulence as they look at program shifts with EV coming on, with some of the changes in terms of their global marketplace.

當我們考慮將其歸因於什麼時，我們的客戶似乎- 請記住，我們的大多數客戶都是一級零件供應商- 他們正在應對市場動盪，因為他們正在考慮隨著電動汽車的到來而進行的計劃轉變隨著全球市場的一些變化。

And for the second quarter in a row, they're withholding packages as they try to get more certainty about production starts.

他們連續第二個季度扣留了包裹，因為他們試圖獲得更多關於生產開始的確定性。

And again, they're trying to anticipate production starts that would begin a year from now.

他們再次試圖預測一年後的生產開始。

So you can imagine how challenging it is in the environment out there to anticipate those production starts.

因此，您可以想像在外部環境中預測這些生產開始是多麼具有挑戰性。

So we're just not seeing the volume of package opportunities that we saw last year -- this year.

所以我們只是沒有看到去年和今年看到的打包機會的數量。

So that's what appears to be going in auto.

這就是汽車產業正在發生的事情。

Okay.

好的。

Thank you.

謝謝。

And then just regarding the new facility in Syracuse, it looks like you've already received some $60 million in local tax breaks, but you're hoping to get some federal equipment purchase breaks as well.

然後就錫拉丘茲的新設施而言，您似乎已經獲得了約 6000 萬美元的地方稅收減免，但您還希望獲得一些聯邦設備購買減免。

And did I hear you say you're still hoping to break down within the next two months?

我有沒有聽到你說你仍然希望在接下來的兩個月內崩潰？

So you're right, the state has been very forthcoming and really thrilled with that.

所以你是對的，國家對此非常樂於助人並且非常興奮。

And we're just -- yeah, we're just looking to finalize the federal side and that takes a bit more time.

我們只是——是的，我們只是想敲定聯邦方面的決定，這需要更多的時間。

So we're working our way through that.

所以我們正在努力解決這個問題。

And I'd also say that in the quarter, we were able to firm up our agreements with customers as well.

我還想說，在本季度，我們也能夠與客戶簽訂協議。

So hasn't changed our overall schedule in terms of breaking ground in the first half of the year, but just working through sort of the final stages here of preparation as we as we get ready to break ground.

因此，我們在上半年破土動工的整體時間表並沒有改變，只是在準備破土動工時完成了最後階段的準備工作。

Okay.

好的。

Thank you.

謝謝。

I'll just end just with a kind of a minor question.

我將以一個小問題作為結束。

But with the buyback, again, was active in Q1 and your relative reverse stock-based comp, I was a little surprised that you're guiding to higher diluted share count in 2Q.

但由於回購在第一季非常活躍，而且您的相對反向股票比較，我有點驚訝您在第二季度引導更高的稀釋股票數量。

Is that just being conservative or is there something else happening?

這只是保守還是有其他原因發生？

Yeah, I would say, it's a bit conservative with the shares that will be issued in Q2 that -- from vesting of our stock plan.

是的，我想說，對於第二季將要發行的股票來說，這有點保守——來自我們股票計劃的歸屬。

There will be some more buyback probably -- that will likely bring that down a little bit more than the 105 million that we've got there.

可能還會有更多的回購——這可能會比我們現有的 1.05 億美元減少一點點。

But that's what we used for the guidance.

但這就是我們用來指導的。

Thank you.

謝謝。

(Operator Instructions) I am showing no further question in the queue at this time, I would like to turn the call back over to Mr. Tom Edman for closing remarks.

（操作員指示）此時，我在隊列中沒有顯示任何其他問題，我想將電話轉回給 Tom Edman 先生進行結束語。

Thank you.

謝謝。

Yeah.

是的。

I'd just like to close by summarizing a few of the points that I made earlier.

最後我想總結一下我之前提出的一些觀點。

First, we delivered non-GAAP EPS above the high end of guided range.

首先，我們的非公認會計準則每股收益高於指導範圍的高端。

Revenues at the high end of the guided range with improved operational performance and favorable product mix on a year-on-year basis.

收入處於指導範圍的高端，營運績效有所改善，產品組合較去年同期有所改善。

Second, we generated a healthy cash flow from operations at 7.7% of revenues that did enable us to repurchase stock and maintain a solid balance sheet with a net EBITDA leverage of about 1.5x at the low end of our target range.

其次，我們從營運中產生了健康的現金流，佔收入的 7.7%，這確實使我們能夠回購股票並保持穩健的資產負債表，淨 EBITDA 槓桿約為目標範圍低端的 1.5 倍。

And in closing, I would just like to thank our employees, our customers and you, our investors, for your continued support.

最後，我要感謝我們的員工、客戶以及您，我們的投資者，感謝你們的持續支持。

Thank you very much.

非常感謝。

This concludes today's program.

今天的節目到此結束。

Thank you for participating disconnect.

感謝您參與斷開連線。