TTM Technologies Inc (TTMI) 2024 Q3 法說會逐字稿

Good afternoon, and thank you for standing by. Welcome to the third quarter 2024 TTM Technologies earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded today, Wednesday, October 30, 2024.

下午好，感謝您的耐心等待。歡迎參加 TTM Technologies 2024 年第三季財報電話會議。 （操作員說明）謹此提醒，本次會議將於今天（2024 年 10 月 30 日星期三）進行錄製。

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

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

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

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

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 不承擔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. Such measures should not be considered as a substitute for the measures prepared and presented in accordance with GAAP, and we direct you to the reconciliations 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.

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。此類措施不應被視為替代根據GAAP 準備和提出的措施，我們會指導您查看公司收益報告中包含的GAAP 和非GAAP 措施之間的對賬，該資訊可在公司收益報告的投資者關係部分找到。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. Please go ahead, Tom.

我現在將把電話轉給 TTM 執行長 Tom Edman。請繼續，湯姆。

Thank you, Sameer. Good afternoon, and thank you for joining us for our third quarter 2024 conference call. I'll begin with a review of our business highlights from the quarter and a discussion of our third quarter results, followed by a summary of our business strategy. Dan Boehle, our CFO, will follow with an overview of our Q3 2024 financial performance and our Q4 2024 guidance. We will then open the call to your questions.

謝謝你，薩米爾。下午好，感謝您參加我們的 2024 年第三季電話會議。我將首先回顧本季的業務亮點並討論第三季的業績，然後總結我們的業務策略。我們的財務長 Dan Boehle 隨後將概述我們 2024 年第三季的財務業績和 2024 年第四季的指導。然後我們將開始電話詢問您的問題。

Highlights of the quarter's financial results are summarized on slide 3 of the earnings presentation posted on TTM's website. We delivered an excellent quarter, and I would like to thank our employees for their hard work and contributions in support of these results. In the third quarter of 2024, TTM delivered strong operating margin performance due to higher revenues, favorable mix, and outstanding operational execution.

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。我們度過了一個出色的季度，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。 2024 年第三季度，由於收入增加、有利的產品組合和出色的營運執行力，TTM 實現了強勁的營業利潤率表現。

Revenues were above the mid-point of the guided range, representing the third consecutive quarter of year-on-year growth due to demand strength from our aerospace and defense and data center computing end markets, the latter being driven by Generative AI.

由於我們的航空航太、國防和資料中心運算終端市場的需求強勁，收入高於指導範圍的中點，連續第三個季度同比增長，後者是由生成人工智慧驅動的。

The growth in revenues was partially offset by year-over-year declines from our medical, industrial, and instrumentation and automotive end markets. Overall, the company book-to-bill was [1.20] with the A&D book to bill at [1.26] for the second consecutive quarter. Demand in our aerospace and defense market, which was 46% of revenues for the quarter continues to be strong, and we now have a record program backlog of approximately $1.49 billion.

收入的成長部分被我們的醫療、工業、儀器和汽車終端市場的年減所抵消。整體而言，該公司的訂單出貨比連續第二季為[1.20]，A&D 的訂單出貨比為[1.26]。佔本季營收 46% 的航空航太和國防市場需求依然強勁，目前我們的計畫積壓金額創歷史新高，約 14.9 億美元。

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

我現在想提供戰略更新。 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。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 printed circuit boards contributing less than 50% overall. We have been executing against this strategy as our aerospace and defense and operations teams have steadily improved operating margins.

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整合電子產品。印刷電路板整體貢獻不到 50%。我們一直在執行這項策略，因為我們的航空航太、國防和營運團隊的營運利潤率穩步提高。

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 customers in our commercial end markets. This new facility in Malaysia is supporting customers end markets such as data center computing, networking and medical industrial and instrumentation. We continue to make progress ramping volume production as we manage through ongoing customer audits and qualifications. We registered revenues in the third quarter and expect our Malaysia facility to gain further revenue momentum in the fourth quarter as we continue our production ramp.

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的高度自動化 PCB 製造工廠，為商業終端市場的客戶提供服務。馬來西亞的這家新工廠正在為資料中心運算、網路以及醫療工業和儀器儀表等客戶終端市場提供支援。透過持續的客戶審核和資格認證，我們在提高產量方面不斷取得進展。我們在第三季錄得收入，並預計隨著我們繼續提高產量，我們的馬來西亞工廠將在第四季度獲得進一步的收入動力。

I'd also like to update you on the consolidation of our manufacturing footprint. We previously announced our plan to close three small printed circuit board 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's remaining facilities. We continue to ramp production for the transferred parts at receiving facilities.

我還想向您介紹我們製造業務整合的最新情況。我們先前宣布計劃關閉三個小型印刷電路板製造工廠，以提高工廠總利用率、營運績效、客戶關注度和獲利能力。 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。我們持續在接收設施提高轉移零件的產量。

We also have plans to consolidate two smaller non-PCB integrated electronics facilities in Elizabeth City, North Carolina and Huntington, New York into existing facilities in order to improve efficiencies. This consolidation will occur over the next three quarters. After these consolidation plans are complete, TTM will operate a total of 22 facilities worldwide.

我們還計劃將北卡羅來納州伊麗莎白市和紐約州亨廷頓的兩個較小的非 PCB 整合電子工廠合併到現有工廠中，以提高效率。這種整合將在未來三個季度進行。這些整合計畫完成後，TTM 將在全球營運總共 22 個工廠。

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. This new facility will focus on specialized high technology printed circuit board 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. We have broken ground for the new building and expect initial low-rate production in 2026.

最後，我想向您通報我們先前宣布的最新情況，即我們打算透過在現有的紐約雪城校區附近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。該新工廠將專注於專業化高科技印刷電路板生產，為客戶縮短交貨時間，並大幅增加國內超 HDI PCB 產能，以支持國家對高科技 PCB 日益增長的安全要求。我們的新大樓已破土動工，預計 2026 年可實現初步低產量生產。

As previously announced, we expect the investment for Phase 1 of the proposed project, including capital for campus wide improvements to be in the range of between $100 million $130 million. We will be receiving support from both federal and state sources on the order of approximately $52 million subject to certain requirements and contingencies, which will serve to offset the initial capital investment and lower operating expenses.

如同先前所宣布的，我們預計擬議項目第一階段的投資（包括校園範圍內的改善資金）將在 1 億美元至 1.3 億美元之間。根據某些要求和意外情況，我們將獲得聯邦和州政府提供的約 5,200 萬美元的支持，這將有助於抵消初始資本投資並降低營運費用。

This month, we celebrated the groundbreaking with a beam signing ceremony at the site of the new manufacturing building. TTM executives, the Governor of New York, other state and local officials and leading defense customers were present at this milestone event.

本月，我們在新製造大樓現場舉行了梁簽字儀式，慶祝了奠基儀式。 TTM 高層、紐約州州長、其他州和地方官員以及領先的國防客戶出席了這項里程碑式的活動。

Now I'd like to review our end market which are referenced on page 4 of the earnings presentation on our website. The aerospace and defense end market represented 46% of total third quarter sales, compared to 45% of Q3 2023 sales and 45% of sales in Q2 2024. The solid demand in the defense market is a result of a positive tailwind in previous defense budgets and supplemental funding related to conflicts in Ukraine and the Middle East.

現在我想回顧一下我們網站上的收益演示第 4 頁引用的我們的終端市場。航空航太和國防終端市場佔第三季總銷售額的46%，而2023 年第三季銷售額為45%，2024 年第二季銷售額為45%。推動的結果以及與烏克蘭和中東衝突有關的補充資金。

Our strong strategic program alignment and key bookings for ongoing franchise programs. We had a strong bookings quarter with a book to bill ratio of [1.26] for the second consecutive quarter, leading to a record A&D program backlog of approximately $1.49 billion at the end of the third quarter. During the quarter, we saw significant bookings for SPY-7, MH-60R and the Japan Aerospace Defense Ground Environment programs.

我們為正在進行的特許經營計劃提供強有力的策略計劃調整和關鍵預訂。我們的預訂季度表現強勁，預訂出貨比連續第二季達到[1.26]，導致第三季末 A&D 專案積壓創紀錄，約 14.9 億美元。本季度，我們看到 SPY-7、MH-60R 和日本航空航天防禦地面環境項目的大量預訂。

We expect sales in Q4 from this end market to represent about 45% of our total sales. 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.

我們預計第四季度該終端市場的銷售額將占我們總銷售額的 45% 左右。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 19% of total sales in the third quarter, compared to 17% in Q3 of 2023 and 21% in the second quarter of 2024. This end market saw 20% year-on-year growth due to strength from our data center customers building products for Generative AI applications. Due to customer timing, we saw some deliveries move from Q3 into Q4. As a result, we expect revenues in this end market to represent 21% of fourth quarter sales.

資料中心計算終端市場的銷售額佔第三季總銷售額的 19%，而 2023 年第三季為 17%，2024 年第二季為 21%。資料中心客戶為生成式人工智慧應用程式建立產品，提供了強大的力量。由於客戶時間安排的原因，我們看到一些交付從第三季度轉移到了第四季度。因此，我們預計該終端市場的營收將佔第四季銷售額的 21%。

The medical, industrial, instrumentation end market contributed 14% of our total sales in the third quarter compared to 16% in the year ago quarter and 14% in the second quarter of 2024. The year-over-year decline was generally the result of lower demand and ongoing inventory normalization, particularly in the industrial and medical areas. We saw increased demand from our semiconductor testing customers as Generative AI drove growth in the DRAM market, leading to increased purchases of automated test equipment. For the fourth quarter, we expect the medical, industrial, instrumentation end market to be 14% of revenues.

醫療、工業、儀器終端市場在第三季貢獻了我們總銷售額的 14%，而去年同期為 16%，2024 年第二季為 14%。 ，特別是在工業和醫療領域。隨著生成式人工智慧推動 DRAM 市場的成長，我們看到半導體測試客戶的需求不斷增加，導致自動化測試設備的購買量增加。對於第四季度，我們預計醫療、工業、儀器儀表終端市場將佔營收的 14%。

Automotive sales represented 14% of total sales during the third quarter of 2024 compared to 15% in the year ago quarter and 14% during the second quarter of 2024. The year-over-year decline for automotive was due primarily to continued inventory adjustments and soft demand at several customers. We expect our automotive business to contribute 12% of total sales in Q4 as the automotive end market remains challenged in the near-term.

汽車銷售佔 2024 年第三季總銷量的 14%，而去年同期為 15%，2024 年第二季為 14%。由於汽車終端市場短期內仍面臨挑戰，我們預期汽車業務將佔第四季總銷售額的 12%。

Networking accounted for 7% of revenue during the third quarter of 2024. This compares to 7% in the third quarter of 2023 and 6% of revenue in the second quarter of 2024. We saw a return to year-on-year growth due to recovering demand from certain networking customers. In Q4, we expect this end market to be 8% of revenues as this market continues to recover driven by AI related demand and new products.

2024 年第三季度，網路業務佔營收的 7%。客戶的需求。第四季度，我們預計該終端市場將佔營收的 8%，因為該市場在人工智慧相關需求和新產品的推動下持續復甦。

Next, I'll cover some details from the third quarter. This information is also available on page 5 of our earnings presentation. During the quarter, our advanced technology and engineered products, which include HDI, rigid flex, RF subsystems and components and engineered systems accounted for approximately 49% of our revenue. This compares to approximately 47% in the year ago quarter and 45% in Q2. We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology and engineered products capabilities in new programs and new markets.

接下來，我將介紹第三季的一些細節。此資訊也可在我們的收益簡報的第 5 頁上找到。本季度，我們的先進技術和工程產品（包括 HDI、剛柔結合、射頻子系統和組件以及工程系統）約占我們收入的 49%。相比之下，去年同期約為 47%，第二季約為 45%。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 60% in Q3 compared to 46% in the year ago quarter 64% in Q2. On a year-on-year basis, utilization rates improved as data center demand continues to be strong and other commercial markets started to rebound. Our overall PCB capacity utilization in North America was 35% in Q3 compared to 38% in the year ago quarter and 39% in Q2.

第三季亞太地區 PCB 產能利用率為 60%，去年同期為 46%，第二季為 64%。與去年同期相比，隨著資料中心需求持續強勁以及其他商業市場開始反彈，利用率有所改善。第三季我們在北美的整體 PCB 產能利用率為 35%，去年同期為 38%，第二季為 39%。

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. Our top five customers contributed 41% of total sales in the third quarter of 2024 compared to 43% in the third quarter of 2023. We had one customer with over 10% of our total sales in the quarter.

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。我們的前五名客戶在 2024 年第三季貢獻了總銷售額的 41%，而 2023 年第三季為 43%。

At the end of Q3, our 90-day backlog, which is subject to cancellations and includes shipments into customer hubs, was $638.9 million compared to $606.8 million at the end of the third quarter last year. And as I mentioned earlier, our aerospace and defense program backlog increased from $1.35 billion at the end of Q3 last year to a record of $1.49 billion at the end of Q3 this year. Our overall book to bill ratio was 1.20 for the three months ended September 30.

截至第三季末，我們的 90 天積壓訂單（可能會被取消，包括運送到客戶中心的貨物）為 6.389 億美元，而去年第三季末為 6.068 億美元。正如我之前提到的，我們的航空航太和國防項目積壓從去年第三季末的 13.5 億美元增加到今年第三季末的創紀錄的 14.9 億美元。截至 9 月 30 日的三個月，我們的整體訂單出貨比為 1.20。

Now Dan will review our financial performance for the third quarter. Dan?

現在丹將回顧我們第三季的財務表現。擔？

Thanks, Tom, and good afternoon, everyone. I will review our financial results for the third quarter that were included in the press release distributed today and are summarized on slide 6 of the earnings presentation posted on our website.

謝謝湯姆，大家下午好。我將回顧我們第三季的財務業績，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第 6 幻燈片中進行了總結。

For the third quarter, net sales were $616.5 million compared to $572.6 million in the third quarter of 2023. 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 end markets.

第三季淨銷售額為6.165 億美元，而2023 年第三季為5.726 億美元。 。

GAAP operating income for the third quarter of 2024 was $51 million, as compared to GAAP operating loss for the third quarter of 2023 of $10.2 million, inclusive of a $44.1 million goodwill impairment charge related to the RF&S component segment.

2024 年第三季的 GAAP 營業收入為 5,100 萬美元，而 2023 年第三季的 GAAP 營業虧損為 1,020 萬美元，其中包括與 RF&S 組件部門相關的 4,410 萬美元商譽減損費用。

On a GAAP basis, net income in the third quarter of 2024 was $14.3 million, or $0.14 per diluted share. This compares to GAAP net loss for the third quarter of 2023 of $37.1 million, or a negative $0.36 per diluted share.

以 GAAP 計算，2024 年第三季淨利為 1,430 萬美元，即稀釋後每股收益 0.14 美元。相比之下，2023 年第三季 GAAP 淨虧損為 3,710 萬美元，即稀釋後每股虧損 0.36 美元。

The remainder of my comments will focus on our non-GAAP financial performance. Our non-GAAP performance excludes M&A related costs, restructuring costs, certain non-cash expense items such as amortization of intangibles, impairment of goodwill, stock compensation, gains on the sale of property, and other unusual or infrequent items. We present non-GAAP financial information to enable investors to see the company through the eyes of management and to facilitate comparisons with expectations and prior periods.

我其餘的評論將集中於我們的非公認會計準則財務表現。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、股票補償、出售財產收益等不尋常或罕見的項目。我們提供非公認會計準則財務信息，使投資者能夠透過管理層的視角了解公司，並便於與預期和前期進行比較。

Gross margin in the third quarter was 22% and compares to 20.8% in the third quarter of 2023. The year-on-year increase was due to higher sales volume, particularly in this aerospace and defense and data center computed end market, and improved operational execution.

第三季的毛利率為 22%，而 2023 年第三季的毛利率為 20.8%。執行。

Selling and marketing expense was $18.9 million in the third quarter, or 3.1% of net sales, versus $17.9 million, or 3.1% of net sales a year ago. Third quarter G&A expense was $36.4 million or 5.9% of net sales compared to $37.7 million or 6.6% of net sales in the same quarter a year ago.

第三季銷售和行銷費用為 1,890 萬美元，佔淨銷售額的 3.1%，而去年同期為 1,790 萬美元，佔淨銷售額的 3.1%。第三季管理及行政費用為 3,640 萬美元，佔淨銷售額的 5.9%，去年同期為 3,770 萬美元，佔淨銷售額的 6.6%。

In the third quarter of 2024, research and development was $7.7 million, or 1.3% of net sales, compared to $5.9 million, or 1% of net sales in the same quarter last year. Our operating margin in third quarter of 2024 was 11.8%. A 170 basis points increase from 10.1% in the same quarter last year. Interest expense was $11.3 million in the third quarter of 2024 compared to $9.6 million in the same quarter last year.

2024 年第三季度，研發費用為 770 萬美元，佔淨銷售額的 1.3%，去年同期為 590 萬美元，佔淨銷售額的 1%。 2024 年第三季我們的營業利益率為 11.8%。較去年同期的 10.1% 成長 170 個基點。 2024 年第三季的利息支出為 1,130 萬美元，去年同期為 960 萬美元。

During the third quarter of 2024, there was a $17.8 million foreign exchange loss below the operating income line, compared to a $0.9 million foreign exchange gain in the third quarter of 2023. The current year impact was primarily driven by unrealized foreign exchange losses from translation of our China and Malaysia balance sheets from local currency into the US dollar functional currency, which experienced significant devaluation against the local currencies in the current quarter.

2024 年第三季度，營業收入線以下出現 1,780 萬美元的外匯損失，而 2023 年第三季的外匯收益為 90 萬美元。馬來西亞的資產負債表從當地貨幣轉換為美元功能貨幣，美元兌當地貨幣在本季經歷了大幅貶值。

Government incentives and interest income totaling $3.6 million resulted in a net $14.2 million loss or $0.12 negative impact to EPS in the current quarter. This compares to a net gain of $3 million or a $0.03 positive impact in EPS in the same quarter of last year.

總計 360 萬美元的政府激勵措施和利息收入導致本季每股收益淨虧損 1,420 萬美元，即 0.12 美元的負面影響。相比之下，去年同期淨收益為 300 萬美元，每股收益為 0.03 美元。

Our effective tax rate was 9.8% in the third quarter, resulting in tax expense of $4.6 million. This compares to a rate of 12.6% or a tax expense of $6.5 million in the same quarter last year. Third quarter 2024 net income was $42.7 million, or $0.41 per diluted share. This compares to third quarter 2023 net income of $44.9 million, or $0.43 per diluted share.

第三季我們的有效稅率為 9.8%，稅費支出為 460 萬美元。相比之下，去年同期的稅率為 12.6%，稅費為 650 萬美元。 2024 年第三季淨利為 4,270 萬美元，或攤薄後每股收益 0.41 美元。相比之下，2023 年第三季淨利為 4,490 萬美元，即稀釋後每股收益 0.43 美元。

Adjusted EBITDA for the third quarter of 2024 was $84.4 million, or 13.7% of net sales, compared with third quarter 2023 adjusted EBITDA of $84.1 million, or 14.7% of net sales. Depreciation for the quarter was $25.8 million. The net capital spending for the quarter was $40.9 million. Our cash flow from operations in the third quarter of 2024 was $65.1 million for 10.6% of net sales.

2024 年第三季調整後 EBITDA 為 8,440 萬美元，佔淨銷售額的 13.7%，而 2023 年第三季調整後 EBITDA 為 8,410 萬美元，佔淨銷售額的 14.7%。該季度的折舊為 2580 萬美元。該季度的淨資本支出為 4,090 萬美元。 2024 年第三季我們的營運現金流為 6,510 萬美元，佔淨銷售額的 10.6%。

Cash and cash equivalents at the end of the third quarter of 2024 totaled $469.5 million. Our net debt divided by last 12 months EBITDA was 1.4 times, below the low end of our targeted range of 1.5 times to 2 times.

截至 2024 年第三季末，現金及現金等價物總額為 4.695 億美元。我們的淨債務除以過去 12 個月的 EBITDA 為 1.4 倍，低於我們目標範圍 1.5 倍至 2 倍的下限。

Now I will turn to our guidance for the fourth quarter. We project net sales for the fourth quarter of 2024 to be in the range of $610 million to $650 million, and non-GAAP earnings to be in the range of $0.44 to $0.50 for diluted share, which is inclusive of operating costs associated with starting up our Penang facility.

現在我將談談我們對第四季的指導。我們預計 2024 年第四季的淨銷售額將在 6.1 億至 6.5 億美元之間，非 GAAP 攤薄收益將在 0.44 至 0.50 美元之間，其中包括與啟動相關的營運成本我們的檳城工廠。

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. We expect SG&A expense to be about 9.5% of net sales in the fourth quarter, and R&D to be about 1.3% of net sales. We expect interest expense of approximately $12.1 million and interest income of approximately $2.5 million. We estimate our effective tax rate will be between 10% and 14%.

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。我們預計第四季銷售及管理費用將佔淨銷售額的 9.5% 左右，研發費用將佔淨銷售額的 1.3% 左右。我們預計利息支出約 1,210 萬美元，利息收入約 250 萬美元。我們估計我們的有效稅率將在 10% 至 14% 之間。

Further, we expect to record depreciation of approximately $26.6 million, amortization of intangibles of approximately $9.2 million, Stock-based compensation expense of approximately $8.3 million, and non-cash interest expense of approximately $0.5 million.

此外，我們預計折舊約 2,660 萬美元，無形資產攤銷約 920 萬美元，股票補償費用約 830 萬美元，非現金利息費用約 50 萬美元。

Finally, I'd like to announce that we will be participating in the Stifel Midwest one-on-one Conference in Chicago on November 7, the BofA Leveraged Finance Conference in Boca Raton on December 3, and the UBS Global Industrials and Transportation Conference in Palm Beach on December 4.

最後，我想宣布，我們將參加11 月7 日在芝加哥舉行的Stifel Midwest 一對一會議、12 月3 日在博卡拉頓舉行的美國銀行槓桿金融會議以及12 月3 日在博卡拉頓舉行的瑞銀全球工業和運輸會議。

That concludes our prepared remarks. Now we'd like to open the line for questions. Operator?

我們準備好的演講到此結束。現在我們想開通提問專線。操作員？

(Operator Instructions).

（操作員說明）。

William Stein, Truist Securities.

威廉斯坦，Truist 證券公司。

All right, great. Thanks for taking my question. Congrats on the good quarter and outlook. I first want to ask about this foreign exchange impact and make sure I understand this because, while we are accustomed to dealing with these things episodically with companies, we haven't heard you guys talk about this in a meaningful way, at least not in my -- not in the recent past, not that I remember anyway. Can you remind us, is this the result of a hedge where I really should look at sort of the whole result of the company with this FX impact? Or do I think about this as an unhedged sort of one-time effect that in a way to get the normalized result I sort of back it out? Can you maybe just explain this for us a little bit? Thank you.

好吧，太好了。感謝您提出我的問題。祝賀良好的季度和前景。我首先想問外匯影響，並確保我理解這一點，因為雖然我們習慣於偶爾與公司處理這些事情，但我們還沒有聽到你們以有意義的方式談論這個問題，至少在我的——不是最近的事，反正我不記得了。您能否提醒我們，這是對沖的結果嗎？或者我認為這是一種未對沖的一次性效應，為了獲得標準化結果，我有點將其取消？您能為我們解釋一下嗎？謝謝。

Yeah, it's the latter, Will. Thanks for the question. This is Dan. The -- it's unhedged. It's a non-cash impact from unrealized translation effects on our balance sheet. So we have significant balance sheet balances in both Asia or China and Malaysia. The Malaysian obviously has increased year-over-year because we now have that building up. So and because of the third quarter change in a US dollar interest rate we just had a significant devaluation of the US dollar versus those currencies. So it'd be the latter to your question.

是的，是後者，威爾。謝謝你的提問。這是丹.這是沒有對沖的。這是未實現的轉換效應對我們資產負債表的非現金影響。因此，我們在亞洲或中國和馬來西亞都有大量的資產負債表餘額。馬來西亞人顯然逐年增加，因為我們現在已經有了這種累積。因此，由於第三季美元利率的變化，美元兌這些貨幣出現了大幅貶值。所以你的問題應該是後者。

So operationally, it looks like the earnings feed was quite a bit stronger than the sort of nominal non-GAAP number. So I think I get that.

因此，從營運角度來看，獲利數據似乎比名目非公認會計準則數字強得多。所以我想我明白了。

Yeah.

是的。

One -- yes, the other question I wanted to ask about that's been a meaningful issue with the company is your execution in Penang. I recall in the last call there was a push out in the timing to break-even and the influence of this -- the new building and the new -- well, facility really on your P&L. Can you review with us what the effect on the Q3 result was from Penang? Was it as big of a drag as you expected or smaller, bigger? And then how you anticipate that trending over the next several quarters?

一——是的，我想問的另一個問題對公司來說是一個有意義的問題，那就是你在檳城的執行力。我記得在上次電話會議中，盈虧平衡的時間被推遲了，這對新建築和新設施的影響確實對你的損益表產生了影響。您能和我們一起回顧一下檳城對第三季成績的影響嗎？它的阻力是像你預期的那麼大還是更小、更大？那麼您如何預測未來幾季的趨勢？

Sure, Will. Yes, it's been pretty consistent the last couple of quarters at about 180 basis points drag on our operating margins. So it's been consistent this quarter and last and we expect the same level of drag in the fourth quarter. We'll start seeing significant revenue ramp up in Q1 and Q2 and as we've said previously, we do expect now to reach break-even middle of next year.

當然，威爾。是的，過去幾季我們的營業利潤率一直以約 180 個基點的速度拖累。因此，本季和上季的情況是一致的，我們預期第四季也會出現同樣程度的拖累。我們將開始看到第一季和第二季的收入大幅成長，正如我們之前所說，我們現在預計明年中期將達到收支平衡。

Previously, correct? That was what you said last quarter?

以前，對嗎？這就是你上個季度所說的？

Right. That's what we said last quarter.

正確的。這就是我們上個季度所說的。

Yes. And that's exactly right, Will. This is Tom. I just wanted to comment to give you a little bit of additional color on how Penang is going. Pretty much as we spoke about it last quarter, we are registering revenues. They're insignificant at this point. Next quarter, we're expecting a buildup in those revenues. And as Dan said, into Q1 and Q2 of next year, we should see a steepening of the revenue climb.

是的。完全正確，威爾。這是湯姆。我只是想評論一下，讓大家對檳城的發展有一些額外的了解。就像我們上個季度談到的那樣，我們正在登記收入。他們在這一點上是微不足道的。下個季度，我們預計這些收入將會增加。正如丹所說，進入明年第一季和第二季度，我們應該會看到收入急劇攀升。

From a qualification standpoint, really no change. We're making progress, steady progress there as we go through audits and qualifications. So and customer interest remains very high in the facility given the opportunity to reinforce or to enforce supply chain resiliency, that interest is still there from the customer base. So really no shift in terms of the characterization of facility from that perspective.

從資格的角度來看，確實沒有變化。當我們通過審核和資格認證時，我們正在取得進展，並穩步進展。因此，鑑於有機會加強或加強供應鏈彈性，客戶對該設施的興趣仍然非常高，客戶群的興趣仍然存在。因此，從這個角度來看，設施的特徵確實沒有改變。

Just one more if I can squeeze it in. The 180 bps drag today that then the facility gets to break-even by mid next year. Is -- what you are -- the way we should interpret that, does that mean effectively holding all sequel a year from now margins will be 180 bps higher or does it not quite mean that because it's even at break-even it's still a drag?

如果我能擠進去的話，就再多一個。你的意思是，我們應該這樣解釋，這是否意味著從現在起一年後有效持有所有續集，利潤率將提高180 個基點，或者這並不完全意味著，因為它甚至處於收支平衡狀態，它仍然是一個拖累？

No. At break-even that's -- you'd get that 180 back, so that's zero drag. And then but if you look at -- so that's a quarterly headwind that I've been giving you the 180 basis points. So you're still going to have two quarters of that headwind and then the second half of the year you'll get to zero and the third quarter you'll start seeing it get a little bit above that. We expect mid-single -- mid-teen operating margins in that business ultimately as we get to full ramp.

不。然後，如果你看一下——這就是我一直給你的 180 個基點的季度逆風。因此，您仍然會遇到兩個季度的逆風，然後下半年您將達到零，第三季您將開始看到它略高於此。我們預計，當我們全面發展時，該業務的營運利潤率最終將達到中路至中雙位數。

So you'll see somewhere between zero in that number as we ramp up in the second half of the year. So for that, when you look at an annual basis, you're not going to get all of that back. It will be slightly still negative for the full year, next year slight drag. But by -- on a quarterly basis, you'll be back at -- you'll be at zero by the third quarter.

因此，當我們在今年下半年增加時，您會看到該數字介於零之間。因此，當你查看年度基礎時，你將無法收回所有這些。全年仍將略為負數，明年略有拖累。但是，按季度計算，到第三季度，您將回到零。

Understood. Thanks for taking my questions.

明白了。感謝您回答我的問題。

Matt Sheerin, Stifel.

馬特謝林，史蒂菲爾。

Yes. A question on the strength that you're seeing in the data center and computing segment. Could you remind us what percentage of your revenue there now is from hyperscale customers and or AI related? And in the customer concentration there, like how many like significant customers are there in that segment?

是的。關於您在資料中心和計算領域看到的實力的問題。您能否提醒我們，目前您的收入中有多少比例來自超大規模客戶和/或與人工智慧相關的？在客戶集中度方面，該細分市場中有多少類似的重要客戶？

So, yes, about 85% of that data center computing end market at this point is related to primarily the hyperscalers and of course the big driver there is Generative AI. So that's significantly up as you know Matt from where we were historically. The balance is primarily in the semiconductor side building boards. From the standpoint of number of customers, we have steadily been improving in terms of the diversity of the customer mix there.

所以，是的，目前資料中心計算終端市場的大約 85% 主要與超大規模相關，當然最大的驅動力是產生式人工智慧。所以，正如你從我們歷史上了解馬特的情況來看，這個數字顯著上升。平衡主要在半導體方面的構建板。從客戶數量來看，我們的客戶結構多樣性一直在穩步提高。

It's still if you start looking at hyperscalers and who's involved in terms of leadership in that market, it's still you're still looking at really a world of four or five major customers. So you're always going to have a relatively high concentration there versus some of our other end markets, but we are trying to work actively to extend our presence across that base.

如果你開始關注超大規模企業以及誰參與該市場的領導地位，那麼你仍然會看到一個由四到五個主要客戶組成的世界。因此，與我們的一些其他終端市場相比，那裡的集中度總是相對較高，但我們正在積極努力擴大我們在該基地的影響力。

Yeah. And Tom, in terms of the visibility that you have, we cover several other suppliers that do see quarter-to-quarter volatility there in terms of orders and you already talked about seeing some push outs into Q4, which is why you raised your guide there. So could you talk about like as you look into next year, do you have firm visibility into the first couple of quarters or more or less than that?

是的。湯姆，就您所擁有的可見性而言，我們涵蓋了其他幾家供應商，這些供應商確實在訂單方面看到了季度與季度的波動，並且您已經談到看到一些產品進入第四季度，這就是您提高指南的原因那裡。那麼，您能否談談展望明年的情況，您對前幾季或更多或更少的情況有明確的了解嗎？

Yeah. So the visibility for us certainly Q4 as we've guided and then Q1 looks solid as well. Beyond that gets difficult to -- more difficult to forecast. So really at this point, the strength looks like we're in solid shape Q4 and then into Q1 harder to project beyond that. And obviously, the backdrop still looks very good in terms of capital expenditures and Generative AI, in terms of innovation that's occurring in that end market that would drive demand significantly, Matt. But again, in terms of firm demand signals, we're really it goes through Q1.

是的。因此，正如我們所指導的那樣，我們對第四季度的能見度肯定很高，然後第一季看起來也很穩定。除此之外，就很難預測了。所以實際上在這一點上，我們的實力看起來第四季已經處於穩定狀態，然後進入第一季就更難超出這個範圍了。顯然，就資本支出和生成人工智慧而言，就終端市場中正在發生的將顯著推動需求的創新而言，背景看起來仍然非常好，馬特。但同樣，就堅定的需求訊號而言，我們確實經歷了第一季。

Got it. And then and just a question regarding the expansion in Syracuse. In terms of the timetable there, will there be any financial impact in terms of margins or anything next year? Or is it really more of a fiscal '26 story in terms of when you're going to start to ramp and that sort of thing?

知道了。然後是關於錫拉丘茲擴張的問題。就時間表而言，明年會對利潤率或其他方面產生任何財務影響嗎？或者說這其實更像是 26 財年的故事，例如什麼時候開始加速擴張之類的事情？

Yes, that's mostly fiscal 2026. Next year very little P&L impact. And we'll be building the facility next year, but won't really have it online until very late in the year. You'll start seeing a little bit of depreciation. That's really it. We'll be ramp up for that slowly.

是的，這主要是 2026 財年的情況。我們將在明年建造該設施，但要到今年晚些時候才會真正上線。您將開始看到一點貶值。確實如此。我們將慢慢為此做好準備。

Thank you.

謝謝。

Michael Crawford, B. Riley Securities.

邁克爾·克勞福德 (Michael Crawford)，B. 萊利證券 (Riley Securities)。

Thank you. Can you talk about what impact, if any, you had at your advanced technology center in Chippewa Falls where there was a fire in August? I think this was facility you got with your i3 acquisition five years ago?

謝謝。您能否談談您位於 Chippewa Falls 的先進技術中心 8 月發生的火災造成了哪些影響（如果有的話）？我認為這是您五年前收購 i3 時獲得的便利？

Sure, Mike. Yeah. So actually, it was in our Chippewa Falls base facility, which is -- which we've had since 2002, I guess it was. Adjacent or close by that facility, we built our advanced technology center that was not impacted. It was just in our main building for printed circuit board production. It was -- there was really no impact -- material impact at all. We were -- and if there was we would have announced it. The fire occurred I think on a Sunday. We were back in production a day later. So no material impact whatsoever.

當然，麥克。是的。所以實際上，它是在我們的 Chippewa Falls 基地設施中，我猜是我們自 2002 年以來一直擁有的設施。在該設施附近或附近，我們建立了未受影響的先進技術中心。它就在我們用於印刷電路板生產的主建築內。這是——實際上沒有影響——根本沒有實質影響。我們是——如果有的話我們就會宣布。我認為火災發生在周日。一天後我們就恢復生產了。所以沒有任何實質影響。

Okay. Excellent. And then, I'm guessing given that auto remains weak that you didn't have a lot of program lifetime value wins booked in the period. But if you have that number, that'd be appreciated. And then kind of your outlook for when we might expect some revival in that end market vertical?

好的。出色的。然後，我猜測，鑑於汽車仍然疲軟，您在此期間沒有預訂很多專案生命週期價值勝利。但如果你有這個號碼，我將不勝感激。那麼您對我們何時可以預期終端市場垂直領域有所復甦有何展望？

Sure. Yes. So you characterized it well. Market continues to be at this point in a state of flux particularly because of the situation in China, the innovation around EVs there, but the fact that that EV market is largely a China OEM EV market. And so that has certainly impacted the Western World OEM customer base and in turn the Tier-1s. So as they've looked at new programs to let, they've been reluctant given that turbulence to let significant programs out. And those programs that have been let out or programs that are relatively less interest in terms of technology requirements.

當然。是的。所以你很好地描述了它。目前市場仍處於不斷變化的狀態，特別是因為中國的情況以及圍繞電動車的創新，但事實上該電動車市場主要是中國 OEM 電動車市場。因此，這肯定影響了西方世界 OEM 客戶群，進而影響了一級供應商。因此，當他們考慮出租新項目時，考慮到當前的動盪，他們一直不願意出租重要的項目。還有那些已經放出去的節目或是對技術要求相對不太感興趣的節目。

So where we are this last quarter, we won about $25 million in terms of program value, that is certainly not where we'd like to be. I think year-to-date we're at about $106 million. It is I think representative of a market that is dealing with a lot of turbulence and a market that personally and, I think, I mentioned this last quarter, this is really the one commercial market where we're not from a TTM expectation standpoint, we're not expecting growth. I think, next year will be a challenging year as well.

因此，就專案價值而言，我們在上個季度贏得了約 2500 萬美元，這當然不是我們想要的。我認為今年迄今為止我們的營收約為 1.06 億美元。我認為它代表了一個正在應對大量動蕩的市場，以及一個我個人認為我在上個季度提到的市場，這確實是我們不從 TTM 預期角度來看的一個商業市場，我們並不期待成長。我想，明年也將是充滿挑戰的一年。

If you look beyond that to our other commercial markets, we are seeing really turning the corner even in a market such as networking, which is now being influenced by AI. Good to see that growth, good to see data center continuing to be significant and the instrumentation portion of our medical, industrial, instrumentation end market also really starting to pick up. So again, automotive is the one market where I'm at this point hesitant to say that we will see growth here in the near-term.

如果你把目光投向我們的其他商業市場，你會發現，即使在像網路這樣的市場，現在正受到人工智慧的影響，我們也看到了真正的轉折點。很高興看到這種成長，很高興看到資料中心繼續保持重要地位，我們的醫療、工業、儀器終端市場的儀器儀表部分也真正開始回升。再說一次，汽車市場是我目前猶豫是否會在短期內看到成長的市場。

Maybe just one final question for me further this point. So I believe the program lifetime value wins in the last two years in automotive were $530 million and then $623 million so if it's something like $125 million this year and even next year, still those prior wins ought to be programs that are going into production or do some of those prior wins now maybe go into potentially lower volume production than might have been envisioned at that time?

也許這對我來說只是最後一個問題。因此，我相信過去兩年汽車領域的專案生命週期價值贏得了 5.3 億美元，然後是 6.23 億美元，因此，如果今年甚至明年達到 1.25 億美元，那麼之前的勝利應該是正在投入生產或的專案。之前的一些勝利現在可能會導致產量低於當時的預期嗎？

Yeah. No, that's a great point. So the wins that we've had in the past few years, I think there is you really have a full spectrum there. There are programs and our focus and where we pick up significant content particularly in the EV space. We're going to see those programs most of those programs go into production, but a couple of things are going on, Mike.

是的。不，這是一個很好的觀點。因此，我們在過去幾年中取得的勝利，我認為您確實擁有全方位的勝利。有一些計劃和我們的重點，以及我們在其中獲取重要內容的地方，特別是在電動車領域。我們將看到這些程序中的大部分程序投入生產，但有一些事情正在發生，邁克。

I think one is the ramp schedules less aggressive than they were and the other in some cases the date of production of record has slipped. So certainly, as customers recalibrate based on what they're seeing out there in terms of potential demand, they are moving those programs around as well. But by far the majority of those programs will go to production. It's just a question of at what scale they -- how quickly they ramp and the timing of that.

我認為一是坡道時間表沒有以前那麼激進，二是在某些情況下記錄的生產日期已經推遲。因此，當然，當客戶根據他們所看到的潛在需求重新調整時，他們也會改變這些計劃。但到目前為止，這些項目中的大多數都將投入生產。問題只是它們的規模、成長速度和時機。

Okay. Excellent. Thank. Thank you very much.

好的。出色的。感謝。非常感謝。

Thank you.

謝謝。

(Operator Instructions).

（操作員說明）。

Jim Ricchiuti, Needham & Company.

吉姆‧里奇烏蒂 (Jim Ricchiuti)，李約瑟公司。

Hi, good afternoon. This is Chris Grenga on for Jim. I guess my first would be, have you observed or do you anticipate any impact from the strikes that are going on in the commercial aerospace industry at the moment?

嗨，下午好。我是克里斯·格倫加 (Chris Grenga) 替吉姆 (Jim) 發言。我想我的第一個問題是，您是否觀察到或預期目前商業航空航太業正在發生的罷工會產生任何影響？

So, great question. Just to start, if you look at our A&D revenue, so looking at a business that's accounting for 46% of total company revenue, only about 5% of that ties to commercial aerospace. And so relatively, if you look at total company revenues less than about 2% of total company. So not a huge exposure there. With that said, our program content tends to be heavier with the [787]. The [787] has not been affected. It's built in South Carolina. So that's good news.

所以，很好的問題。首先，如果你看看我們的 A&D 收入，看看占公司總收入 46% 的業務，其中只有大約 5% 與商業航空航天相關。相對而言，如果你看看公司總收入不到公司總收入的 2% 左右。所以那裡的曝光度並不高。話雖如此，我們的節目內容往往更重於[787]。 [787]則沒有受到影響。它建於南卡羅來納州。這是個好消息。

What we have seen overall, revenues this last quarter were down about approximately 25% quarter-on-quarter. But if you look year-on-year, it's still up 10% year-on-year and that represents that continued 787 build, as well as in other areas the anticipation, I think that the strike may not go on for too much longer. So we'll see what happens there. But again, that's the extent of our visibility relatively insignificant part of company revenue.

總體而言，上一季的營收季減約 25%。但如果你看年比，仍然同比增長了10%，這代表著787的持續建造，以及其他領域的預期，我認為罷工可能不會持續太久。所以我們會看看那裡會發生什麼。但同樣，我們的知名度在公司收入中相對不重要。

And just to clarify the CapEx for the Syracuse expansion, the number -- the figure you cited, the $100 million to $130 million range, that's net of the federal and state contributions?

只是為了澄清雪城大學擴建的資本支出，您引用的數字，1 億美元到 1.3 億美元的範圍，是扣除聯邦和州捐款的淨值嗎？

No, that does not include that federal $30 million contribution. So that's pre -- that contribution.

不，這不包括聯邦 3000 萬美元的捐款。這就是之前的貢獻。

Thank you very much.

非常感謝。

Thank you.

謝謝。

I am showing no further questions at this time. I would now like to turn the call back over to Tom Edman for closing remarks.

我目前沒有提出任何進一步的問題。我現在想將電話轉回給湯姆·埃德曼（Tom Edman）發表結束語。

Thank you very much. Just wanted to reiterate a few of the points that we made in the call. First, we delivered strong operating margin performance that was driven by higher revenues, favorable mix. And I really wanted to highlight the improved and ongoing improvement in operational execution.

非常感謝。只是想重申我們在電話中提出的一些觀點。首先，我們在更高的收入和有利的組合的推動下實現了強勁的營業利潤率表現。我真的想強調營運執行方面的改進和持續改進。

Second, we generated a healthy cash flow from operations at $65.1 million. We also maintained a solid balance sheet with a net debt to EBITDA leverage ratio of 1.4 times.

其次，我們的營運產生了 6,510 萬美元的健康現金流。我們也維持穩健的資產負債表，淨負債與 EBITDA 的槓桿比率為 1.4 倍。

Third, we continue to make progress on strategic initiatives such as our new facilities in Penang, and in Syracuse.

第三，我們繼續在策略性舉措上取得進展，例如在檳城和雪城的新設施。

And in closing, I would like to thank our employees, first and foremost our customers and our investors for all of your continued support. Thank you very much. Good-bye.

最後，我要感謝我們的員工，首先是我們的客戶和投資者的持續支持。非常感謝。再見。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。