TTM Technologies Inc (TTMI) 2019 Q1 法說會逐字稿

Good day, and welcome to the TTM Technologies Q1 2019 Earnings Call.

美好的一天，歡迎來到迅達科技 2019 年第一季度收益電話會議。

At this time, I'd like to turn the conference over to Mr. Sameer Desai, Senior Director of Corporate Development and Investor Relations.

現在，我想將會議轉交給企業發展和投資者關係高級總監 Sameer Desai 先生。

Please go ahead, sir.

請繼續，先生。

Thank you.

謝謝你。

Before we get started, I would like to remind everyone that today's call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to TTM's future business outlook.

在我們開始之前，我想提醒大家，今天的電話會議包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括與迅達未來業務前景相關的陳述。

Actual results could differ materially from those forward-looking statements due to one or more risks and uncertainties, including the factors explained in our most recent annual report on Form 10-K and our other filings with the Securities and Exchange Commission.

由於一項或多項風險和不確定性，包括我們最近的 10-K 表格年度報告和我們向美國證券交易委員會提交的其他文件中解釋的因素，實際結果可能與這些前瞻性陳述存在重大差異。

These forward-looking statements are based on management's expectations and assumptions at the date of this presentation.

這些前瞻性陳述基於管理層在本報告發布之日的預期和假設。

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

TTM 不承擔公開更新或修改任何這些聲明的義務，無論是由於新信息、未來事件或其他情況，除非法律要求。

Please refer to the disclosures regarding the risks that may affect TTM, which may be found in the reports on Form 10-K, 10-Q, 8-K, the registration statement on Form S-4 and the company's other SEC filings.

請參閱有關可能影響 TTM 的風險的披露，這些披露可在 10-K、10-Q、8-K 表格的報告、S-4 表格的註冊聲明和公司向美國證券交易委員會提交的其他文件中找到。

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

我們還將在此次電話會議上討論某些非 GAAP 財務指標，例如調整後的 EBITDA。

Such measures should not be considered as a substitute for the measures provided and presented in accordance with GAAP, and we direct you to the reconciliation of non-GAAP to GAAP measures included in the company's press release, which was filed with the SEC and is available on TTM's website, at www.ttm.com.

不應將此類措施視為根據 GAAP 提供和呈現的措施的替代品，我們將指導您將非 GAAP 措施與公司新聞稿中包含的 GAAP 措施進行核對，該新聞稿已提交給美國證券交易委員會並可獲得在 TTM 的網站 www.ttm.com 上。

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

我現在想把電話轉給 TTM 的首席執行官 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 2019 conference call.

下午好，感謝您加入我們的 2019 年第一季度電話會議。

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

我將首先回顧我們的業務戰略，包括本季度的亮點，然後討論我們第一季度的業績。

Todd Schull, our CFO, will follow with an overview of our Q1 2019 financial performance and our Q2 2019 guidance.

我們的首席財務官 Todd Schull 隨後將概述我們 2019 年第一季度的財務業績和 2019 年第二季度的指導意見。

We will then open the call to your questions.

然後我們將打開您的問題的電話。

First and foremost, I would like to thank our employees for their contributions during a challenging quarter for TTM Technologies.

首先，我要感謝我們的員工在 TTM Technologies 充滿挑戰的季度中所做的貢獻。

Both our revenue and non-GAAP EPS were within the guided range, despite some material weakness in 2 of our end markets.

儘管我們的兩個終端市場存在一些實質性疲軟，但我們的收入和非 GAAP 每股收益都在指導範圍內。

Excluding a negative $0.03 impact due to foreign exchange, EPS would have been $0.19, towards the high end of guidance, while revenue was below the midpoint of the range.

排除因外匯造成的 0.03 美元的負面影響，每股收益為 0.19 美元，接近指導的高端，而收入低於該範圍的中點。

We achieved these results because of our diversification, strong operational performance and financial discipline.

我們之所以取得這些成績，是因為我們的多元化經營、強勁的經營業績和財務紀律。

We saw solid growth in our aerospace and defense end market that partially offset weakness in our commercial markets of automotive and cellular.

我們看到我們的航空航天和國防終端市場穩步增長，部分抵消了我們汽車和手機商業市場的疲軟。

We generated solid cash flow from operations in the quarter of $36.9 million and continued the repayment of our term loan.

我們在本季度的運營中產生了 3690 萬美元的穩健現金流，並繼續償還我們的定期貸款。

While our forecast for Q2 reflects continued softness in some commercial end markets, particularly in cellular and automotive, we remain focused on operational excellence, financial discipline as well as our strategic goals of diversification and differentiation.

雖然我們對第二季度的預測反映了一些商業終端市場的持續疲軟，尤其是在蜂窩和汽車領域，但我們仍然專注於卓越運營、財務紀律以及我們多元化和差異化的戰略目標。

We continue on our path towards differentiation in the automotive and aerospace and defense end markets.

我們繼續在汽車、航空航天和國防終端市場實現差異化。

Notwithstanding near-term global demand weakness, we view the automotive end market as a core growth driver due to increasing electronics content and the adoption of advanced technologies.

儘管近期全球需求疲軟，但由於電子產品含量的增加和先進技術的採用，我們將汽車終端市場視為核心增長動力。

We see 4 key megatrends driving automotive PCB content growth: number one, vehicle safety and autonomous driving; number two, increasing adoption of hybrid and electric vehicles; number three, advanced infotainment; and number four, increased connectivity.

我們看到推動汽車 PCB 含量增長的 4 個主要大趨勢：第一，車輛安全和自動駕駛；第二，越來越多地採用混合動力和電動汽車；第三，高級信息娛樂；第四，增加連接性。

As we are seeing today, the longer-term transition driven by these trends may cause some short-term pain for our global customer base as the world transitions away from the internal combustion engine.

正如我們今天所看到的那樣，隨著世界從內燃機轉型，由這些趨勢驅動的長期轉型可能會給我們的全球客戶群帶來一些短期的痛苦。

Our goal will be to support our existing customers as they adapt to this new world, while also building business with a set of new, innovative, technology-focused customers.

我們的目標是支持我們現有的客戶適應這個新世界，同時與一組新的、創新的、以技術為中心的客戶建立業務。

Because of the above trends, there continues to be a tremendous amount of innovation in the automotive electronics industry.

由於上述趨勢，汽車電子行業不斷出現大量創新。

Our design activity remains robust, which bodes well for future revenues.

我們的設計活動依然強勁，這預示著未來的收入。

In the automotive market, customer engagement begins well before a product ramp.

在汽車市場，客戶參與早在產品量產之前就開始了。

We won 44 new automotive designs in the first quarter, of which 21 were ADAS-related.

我們在第一季度贏得了 44 項新的汽車設計，其中 21 項與 ADAS 相關。

This compares to 37 total design wins in Q1 of last year and 53 total designs won in the fourth quarter of 2018.

相比之下，去年第一季度共贏得 37 項設計，2018 年第四季度共贏得 53 項設計。

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

我們今年贏得的設計將在未來幾年為收入做出貢獻。

I am also proud of our employees' efforts that serve our aerospace and defense customers.

我也為我們的員工為我們的航空航天和國防客戶服務所做的努力感到自豪。

Our organic aerospace and defense revenues grew 5% year-over-year in Q1, achieving a new record level.

我們的有機航空航天和國防收入在第一季度同比增長 5%，創下歷史新高。

And with Anaren, our revenues grew by 34% year-over-year.

與 Anaren 合作後，我們的收入同比增長了 34%。

This strength is a result of our team's dual focus on supporting both customer Build to Print and design-to-specification requirements across a broad base of major defense programs.

這種實力是我們團隊雙重關注的結果，即在廣泛的主要國防項目基礎上支持客戶按印刷製造和按規格設計要求。

As I've mentioned before, the addition of Anaren moves TTM higher up in the value chain, allowing us to engage with customers earlier in the design cycle.

正如我之前提到的，Anaren 的加入將 TTM 推向了價值鏈的更高位置，使我們能夠在設計週期的早期與客戶接觸。

Our customers can now rely on TTM to deliver a completely designed RF solution to meet their needs.

我們的客戶現在可以依靠迅達來提供完全設計的射頻解決方案來滿足他們的需求。

Now I'd like to review our end markets.

現在我想回顧一下我們的終端市場。

For TTM, the aerospace and defense end market represented 27% of total first quarter sales, compared to 19% of Q1 2018 sales and 23% of sales in Q4 2018.

對於迅達而言，航空航天和國防終端市場佔第一季度總銷售額的 27%，而 2018 年第一季度銷售額為 19%，2018 年第四季度銷售額為 23%。

Total program backlog at the end of Q1 was $487 million, a new record, versus a pro forma backlog of $427 million in Q1 of last year and $481 million in Q4 of 2018.

第一季度末的項目積壓總額為 4.87 億美元，創下新紀錄，而去年第一季度和 2018 年第四季度的備考積壓訂單分別為 4.27 億美元和 4.81 億美元。

We expect sales in Q2 from this end market to represent about 27% of our total sales.

我們預計該終端市場第二季度的銷售額將占我們總銷售額的 27% 左右。

Networking/communications accounted for 18% of revenue during the first quarter of 2019.

網絡/通信佔 2019 年第一季度收入的 18%。

This compares to 15% in the first quarter of 2018 and 18% of revenue in the fourth quarter of 2018.

相比之下，2018 年第一季度為 15%，2018 年第四季度為 18%。

Dollar sales were up on a year-over-year basis due to the inclusion of Anaren, where we enjoyed robust wireless infrastructure-related sales for early stages of 5G development.

由於 Anaren 的加入，美元銷售額同比增長，我們在 5G 開發的早期階段享受了強勁的無線基礎設施相關銷售。

In Q2, we expect this segment to be 18% of revenue.

在第二季度，我們預計該部門將佔收入的 18%。

Automotive sales represented 17% of total sales during the first quarter of 2019, compared to 21% in the year-ago quarter and 16% during the fourth quarter of 2018.

汽車銷售額佔 2019 年第一季度總銷售額的 17%，而去年同期為 21%，2018 年第四季度為 16%。

Automotive sales were weaker than expected in Q1 and down year-over-year due to the softness in global demand, particularly in Asia and Europe.

由於全球需求疲軟，尤其是亞洲和歐洲，第一季度汽車銷量低於預期且同比下降。

We expect automotive to contribute 19% of total sales in Q2.

我們預計汽車將在第二季度貢獻總銷售額的 19%。

The medical/industrial/instrumentation end market contributed 15% of our total sales in the first quarter, compared to 15% in the year-ago quarter and 14% in the fourth quarter of 2018.

醫療/工業/儀器儀表終端市場在第一季度貢獻了我們總銷售額的 15%，而去年同期為 15%，2018 年第四季度為 14%。

We saw strength in our larger medical and industrial customers and weakness in our instrumentation customers.

我們看到了我們較大的醫療和工業客戶的實力，以及我們儀器儀表客戶的弱點。

For the second quarter, we expect this market to be 15% of revenues.

對於第二季度，我們預計該市場將佔收入的 15%。

Sales in the computing/storage/peripherals end market represented 13% of total sales in the first quarter, compared to 13% in Q1 of 2018 and 13% in the fourth quarter of 2018.

計算/存儲/外設終端市場的銷售額佔第一季度總銷售額的 13%，而 2018 年第一季度為 13%，2018 年第四季度為 13%。

We saw strength in high-end notebooks but weakness in data center and semiconductor customers.

我們看到高端筆記本電腦的優勢，但數據中心和半導體客戶的疲軟。

We expect revenues in this end market to represent approximately 14% of second quarter sales.

我們預計該終端市場的收入約佔第二季度銷售額的 14%。

The cellular phone end market accounted for 7% of revenue in the first quarter, compared to 16% in Q1 of 2018 and 14% in Q4 of 2018.

手機終端市場在第一季度佔收入的 7%，而 2018 年第一季度為 16%，2018 年第四季度為 14%。

The sequential decline was primarily due to weaker demand and inventory reductions by our cellular customers.

環比下降主要是由於我們的手機客戶需求疲軟和庫存減少。

We expect cellular to represent 6% of revenues in Q2 as we continue to see inventory digestion before new model releases in the second half of the year.

我們預計蜂窩業務將佔第二季度收入的 6%，因為我們在今年下半年新型號發布之前繼續看到庫存消化。

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

接下來我將介紹第一季度的一些細節。

During the quarter, our advanced technology business, which includes HDI, rigid-flex, substrate and RF subsystems and components, accounted for approximately 33% of our company's revenue.

本季度，我們的先進技術業務（包括 HDI、剛柔結合、基板和射頻子系統和組件）約占公司收入的 33%。

This compares to approximately 35% in the year-ago quarter and 38% in Q4.

相比之下，去年同期約為 35%，第四季度約為 38%。

The sequential and year-over-year decline were driven by softness in the cellular end market.

移動終端市場的疲軟推動了環比下降和同比下降。

We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology capabilities in new markets.

我們將繼續尋求新的商機並增加客戶設計參與活動，以利用我們在新市場中的先進技術能力。

Capacity utilization in Asia Pacific was 55% in Q1, compared to 78% in the year-ago quarter and 73% in Q4.

第一季度亞太地區的產能利用率為 55%，而去年同期為 78%，第四季度為 73%。

The sequential and year-over-year declines were due to softness in our commercial end markets.

連續和同比下降是由於我們的商業終端市場疲軟。

Our overall capacity utilization in North America was 60% in Q1, compared to 57% in the year-ago quarter and 57% in Q4, as our A&D end market continued to drive strong utilization levels in North America.

我們在北美的整體產能利用率在第一季度為 60%，而去年同期為 57%，在第四季度為 57%，因為我們的 A&D 終端市場繼續推動北美的強勁利用率水平。

Our top 5 customers contributed 29% of total sales in the first quarter of 2019, compared to 33% in the year-ago quarter and 35% in the fourth quarter of 2018.

我們的前 5 大客戶在 2019 年第一季度貢獻了總銷售額的 29%，而去年同期為 33%，2018 年第四季度為 35%。

Our largest customer accounted for 9% of sales in the first quarter, versus 16% in the year-ago quarter and 17% in Q4.

我們最大的客戶佔第一季度銷售額的 9%，而去年同期為 16%，第四季度為 17%。

At the end of Q1, our 90-day backlog, which is subject to cancellations, was $438.3 million, compared to $479.6 million at the end of the first quarter last year and $458.4 million at the end of Q4.

在第一季度末，我們可能會取消的 90 天積壓訂單為 4.383 億美元，而去年第一季度末為 4.796 億美元，第四季度末為 4.584 億美元。

Our PCB book-to-bill ratio was 0.84 for the 3 months ending April 1.

截至 4 月 1 日的三個月，我們的 PCB 訂單出貨比為 0.84。

I'd like to conclude by emphasizing TTM's commitment to operational discipline.

最後，我想強調迅達對運營紀律的承諾。

While our visibility is limited, we are preparing for the possibility that some of the weakness in our commercial markets continues into the second half.

雖然我們的能見度有限，但我們正在為我們的商業市場的一些疲軟持續到下半年的可能性做準備。

As a result, in addition to our normal cost reduction efforts to address the softness we are experiencing in the commercial markets, we are reviewing our overall cost structure to ensure that our manufacturing footprint aligns well with the demand realities across our end markets.

因此，除了我們為應對商業市場疲軟而採取的正常成本削減措施外，我們還在審查我們的整體成本結構，以確保我們的製造足跡與我們終端市場的需求現實保持一致。

Our goal is for TTM to emerge from this period of softness in an even stronger position to service our customers as their demand cycle improves.

我們的目標是讓迅達從這段疲軟時期中脫穎而出，隨著客戶需求週期的改善，以更強大的地位為客戶提供服務。

In the longer term, our strategic focus on diversification, differentiation and operational discipline will pay off for TTM, our investors and our customers.

從長遠來看，我們對多元化、差異化和運營紀律的戰略重點將為迅達、我們的投資者和客戶帶來回報。

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

現在托德將審查我們第一季度的財務業績。

Todd?

托德？

Thanks, Tom.

謝謝，湯姆。

And good afternoon, everyone.

大家下午好。

For the first quarter, net sales were $620.2 million, compared to net sales of $663.6 million in the first quarter of 2018 and compared to fourth quarter 2018 net sales of $711 million.

第一季度淨銷售額為 6.202 億美元，2018 年第一季度淨銷售額為 6.636 億美元，2018 年第四季度淨銷售額為 7.11 億美元。

The year-over-year decrease in revenue was due to the declines in our commercial end markets, partially offset by the inclusion of Anaren and growth in our core aerospace and defense end market.

收入同比下降是由於我們的商業終端市場下滑，部分被 Anaren 的納入以及我們核心航空航天和國防終端市場的增長所抵消。

GAAP operating income for the first quarter of 2019 was $17.5 million, compared to $30 million in the first quarter of 2018 and $42.8 million in the fourth quarter of 2018.

2019 年第一季度的 GAAP 營業收入為 1750 萬美元，而 2018 年第一季度為 3000 萬美元，2018 年第四季度為 4280 萬美元。

On a GAAP basis, we incurred a loss in the first quarter of 2019 of $3.3 million, or $0.03 per share.

根據 GAAP，我們在 2019 年第一季度虧損 330 萬美元，即每股虧損 0.03 美元。

This compares to net income of $10.1 million, or $0.09 per diluted share, in the first quarter last year and $52.5 million, or $0.42 per diluted share, in the fourth quarter of 2018.

相比之下，去年第一季度的淨收入為 1010 萬美元，即每股攤薄收益 0.09 美元，2018 年第四季度的淨收入為 5250 萬美元，即每股攤薄收益 0.42 美元。

As a reminder, Q4 included a tax-related benefit of $43.6 million due to the release of a valuation allowance.

提醒一下，由於估值津貼的釋放，第四季度包括了 4360 萬美元的稅收相關收益。

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

我的其餘評論將集中在我們的非 GAAP 財務業績上。

Our non-GAAP performance excludes acquisition-related costs; certain noncash expense items and other unusual or infrequent items, such as the gain on the sale of our Viasource business this quarter; as well as the associated tax impact of these items.

我們的非 GAAP 業績不包括與收購相關的成本；某些非現金支出項目和其他不尋常或不常見的項目，例如本季度出售我們的 Viasource 業務的收益；以及這些項目的相關稅收影響。

Additionally, we exclude nonoperational changes in our tax expense, such as the release in the fourth quarter of the tax valuation allowance.

此外，我們排除了稅收支出的非經營性變化，例如第四季度稅收估值津貼的釋放。

We present non-GAAP financial information to enable investors to see the company through the eyes of management and to better provide insight into the company's ongoing financial performance.

我們提供非 GAAP 財務信息，使投資者能夠從管理層的角度看待公司，並更好地洞察公司的持續財務業績。

Gross margin in the first quarter was 14.6%, compared to 13.4% in the first quarter of 2018 and 17.5% in the fourth quarter of 2018.

第一季度毛利率為 14.6%，而 2018 年第一季度為 13.4%，2018 年第四季度為 17.5%。

The year-over-year increase in gross margin was primarily due to the addition of Anaren and growth in our core A&D end market, partially offset by lower volumes in our cellular end market.

毛利率的同比增長主要是由於 Anaren 的加入和我們核心 A&D 終端市場的增長，部分被我們的蜂窩終端市場的銷量下降所抵消。

Selling and marketing expense was $18.4 million in the first quarter, or 3% of net sales, versus $17.3 million, or 2.6% of sales, a year ago and $18 million, or 2.5% of net sales, in the fourth quarter.

第一季度的銷售和營銷費用為 1840 萬美元，占淨銷售額的 3%，去年同期為 1730 萬美元，佔銷售額的 2.6%，第四季度為 1800 萬美元，占淨銷售額的 2.5%。

First quarter G&A expense was $31.6 million, or 5.1% of net sales, compared to $27.4 million, or 4.1% of net sales, in the same quarter a year ago and $33 million, or 4.6% of net sales, in the previous quarter.

第一季度 G&A 費用為 3160 萬美元，占淨銷售額的 5.1%，去年同期為 2740 萬美元，占淨銷售額的 4.1%，上一季度為 3300 萬美元，占淨銷售額的 4.6%。

The year-over-year increases in selling and marketing and G&A expenses were due to the addition of Anaren.

銷售和營銷以及 G&A 費用的同比增長是由於 Anaren 的加入。

Our operating margin in Q1 was 6.5%.

我們第一季度的營業利潤率為 6.5%。

This compares to 6.7% in the same quarter last year and 10.3% in the fourth quarter of 2018.

相比之下，去年同期為 6.7%，2018 年第四季度為 10.3%。

Interest expense was $17.8 million in the first quarter, an increase of $7.4 million from the same quarter last year due to the incremental term loans associated with the acquisition of Anaren and higher interest rates.

第一季度的利息支出為 1780 萬美元，比去年同期增加 740 萬美元，原因是與收購 Anaren 相關的增量定期貸款和更高的利率。

During the quarter we recorded $4.9 million of foreign exchange losses.

本季度我們錄得 490 萬美元的匯兌損失。

Government incentives brought the net loss to $3.6 million, or approximately $0.03 of EPS.

政府激勵措施使淨虧損達到 360 萬美元，或每股收益約 0.03 美元。

This compares to a net loss of $1.1 million in Q1 last year.

相比之下，去年第一季度淨虧損 110 萬美元。

Our effective tax rate was 14% in the first quarter.

我們第一季度的有效稅率為 14%。

First quarter net income was $16.4 million, or $0.16 per diluted share.

第一季度淨收入為 1640 萬美元，或每股攤薄收益 0.16 美元。

This compares to first quarter 2018 net income of $28 million, or $0.26 per diluted share, and fourth quarter 2018 net income of $55 million, or $0.52 per diluted share.

相比之下，2018 年第一季度淨收入為 2800 萬美元，稀釋後每股收益為 0.26 美元，2018 年第四季度淨收入為 5500 萬美元，稀釋後每股收益為 0.52 美元。

Adjusted EBITDA for the first quarter was $78.5 million, or 12.7% of net sales, compared with first quarter 2018 adjusted EBITDA of $83.2 million, or 12.5% of net sales.

第一季度調整後的 EBITDA 為 7850 萬美元，占淨銷售額的 12.7%，而 2018 年第一季度調整後的 EBITDA 為 8320 萬美元，占淨銷售額的 12.5%。

In the fourth quarter, adjusted EBITDA was $117.4 million, or 16.5% of net sales.

第四季度，調整後的 EBITDA 為 1.174 億美元，占淨銷售額的 16.5%。

Cash flow from operations was $36.9 million in the first quarter, versus a use of cash of $14.3 million in the same quarter last year.

第一季度運營現金流為 3690 萬美元，而去年同期使用現金為 1430 萬美元。

During the quarter we also repaid an additional $30 million of debt, bringing our total repayment of debt to $114 million since we acquired Anaren -- $144 million since we acquired Anaren.

在本季度，我們還額外償還了 3000 萬美元的債務，使我們自收購 Anaren 以來償還的債務總額達到 1.14 億美元——自收購 Anaren 以來為 1.44 億美元。

Cash and cash equivalents at the end of the first quarter totaled $235.2 million, versus $256.4 million in the fourth quarter.

第一季度末現金和現金等價物總計 2.352 億美元，而第四季度為 2.564 億美元。

Depreciation for the first quarter was $41.6 million.

第一季度的折舊為 4160 萬美元。

Net capital spending for the quarter was $28.4 million.

本季度的淨資本支出為 2840 萬美元。

Now I'd like to turn to our guidance for the second quarter.

現在我想談談我們對第二季度的指導。

We expect total revenue for the second quarter of 2019 to be in the range of $610 million to $650 million.

我們預計 2019 年第二季度的總收入將在 6.1 億美元至 6.5 億美元之間。

We expect non-GAAP earnings to be in the range of $0.15 to $0.21 per diluted share.

我們預計非 GAAP 每股攤薄收益將在 0.15 美元至 0.21 美元之間。

The EPS forecast is based on a diluted share count of approximately 106 million shares.

每股收益預測基於約 1.06 億股的稀釋後股份數。

Our share count includes dilutive securities such as options and RSUs, but no shares associated with our convertible bonds.

我們的股票數量包括期權和 RSU 等稀釋性證券，但不包括與我們的可轉換債券相關的股票。

We expect that SG&A expense will be about 8.3% of revenue in the second quarter.

我們預計第二季度 SG&A 費用將佔收入的 8.3% 左右。

We expect interest expense to total about $17.8 million.

我們預計利息支出總額約為 1780 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。

To assist you in developing your financial models, we offer the following additional information.

為了幫助您開發財務模型，我們提供以下附加信息。

We expect to record during the second quarter amortization of intangibles of about $12.5 million; stock-based compensation expense of about $3.9 million; noncash interest expense of approximately $3.5 million; and we estimate depreciation expense will be approximately $42 million.

我們預計在第二季度記錄的無形資產攤銷約為 1250 萬美元；基於股票的補償費用約為 390 萬美元；非現金利息支出約為 350 萬美元；我們估計折舊費用約為 4200 萬美元。

Finally, I'd like to announce that we will be participating in the J.P. Morgan Global Technology, Media and Communications Conference in Boston on May 14; the Macquarie Technology, Media and Telecom Corporate Day in New York City on May 21; the Barclays High Yield Bond and Syndicated Loan Conference in Colorado Springs on June 6; the Stifel Cross Sector Insight Conference on June 11 in Boston; and the NASDAQ Technology Conference in London on June 13.

最後，我想宣布，我們將參加 5 月 14 日在波士頓舉行的摩根大通全球技術、媒體和通信大會； 5 月 21 日在紐約市舉行的麥格理技術、媒體和電信企業日； 6 月 6 日在科羅拉多斯普林斯舉行的巴克萊高收益債券和銀團貸款會議； 6 月 11 日在波士頓舉行的 Stifel 跨部門洞察會議；以及 6 月 13 日在倫敦舉行的納斯達克技術大會。

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

我們準備好的發言到此結束，現在我想打開提問熱線。

Operator?

操作員？

(Operator Instructions) And our first question comes from Matt Sheerin, with Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Matt Sheerin。

Just a question regarding the cellular business.

只是關於蜂窩業務的問題。

It looks like that revenue number for June is going to be the lowest for that segment in, like, since 2014.

看起來 6 月份的收入數字將是該細分市場自 2014 年以來的最低水平。

How much of that is just weakness at your top customer versus any share gains, any changes in content?

其中有多少只是你的頂級客戶的弱點與任何份額收益，內容的任何變化？

And as you look, and I know there's not a lot of visibility, but typically you start to see some signs of bookings or backlog going into the second half with typical seasonal ramps, any indication that things have bottomed here and that you should start to see at least some sequential growth in the second half?

當你看的時候，我知道能見度不高，但通常你會開始看到一些預訂或積壓的跡象進入下半年，典型的季節性斜坡，任何跡象表明事情已經觸底，你應該開始至少看到下半年出現一些連續增長？

Sure.

當然。

Let me answer this one.

讓我回答這個問題。

So we're of course on the tail end of a cycle on the cellular side, and that Q1 and Q2 production level is usually determined by the sell-through that our customers experience on the consumer side.

因此，我們當然處於移動端週期的尾端，第一季度和第二季度的生產水平通常取決於我們的客戶在消費者端體驗到的銷售情況。

I think this has been a cycle where our customer, our major customer, certainly, has not seen the kind of sell-through that they were hoping for.

我認為這是一個循環，我們的客戶，我們的主要客戶當然沒有看到他們希望的那種銷售。

I think inventories have been high in the channel.

我認為渠道中的庫存一直很高。

And really Q1 and now Q2 as we forecast Q2, as well, we're going to be really down to very low production levels as the chain, our customers' assembly chain works through inventories.

真的 Q1 和現在的 Q2 正如我們預測的 Q2 一樣，我們將真正降低到非常低的生產水平，因為鏈條，我們客戶的裝配鏈通過庫存運作。

So that's really what we're forecasting is going to occur in Q2.

所以這真的是我們預測的第二季度會發生的事情。

As far as the back half of the year goes, we're still in very good shape on prototyping for the new cycle on the cellular phones.

就今年下半年而言，我們在手機新周期的原型設計方面仍然處於非常好的狀態。

Q3 looks to be a forecast very similar to what we've seen in past years where we'll be pretty much building everything we can.

第三季度看起來是一個與我們在過去幾年中看到的非常相似的預測，我們將盡我們所能構建一切。

The production output will be determined by yields.

產量將由產量決定。

But this next cycle, we're looking at really again a lesser technology shift with the new phones.

但在下一個週期，我們將再次關注新手機帶來的較小技術轉變。

And so our goal is going to be to optimize yields in that third quarter and then continue to build into that fourth quarter ramp.

因此，我們的目標是在第三季度優化收益率，然後繼續進入第四季度。

So nothing different there in terms of what we see in the back half of the year as compared to past ramps.

因此，與過去的斜坡相比，我們在今年下半年看到的情況並沒有什麼不同。

Okay.

好的。

Just off of a lower base, I guess.

我猜只是在較低的基礎上。

Yes, correct.

是，對的。

And then you also talked, Tom, about wanting to utilize that very high-end, substrate-like PCB technology that you use for smartphones for other end markets.

湯姆，然後你還談到了想要將用於智能手機的非常高端的類基板 PCB 技術用於其他終端市場。

How -- where are you positioned there?

如何 - 你在那裡的位置？

Are we talking about opportunities within the next year or two?

我們是在談論未來一兩年內的機會嗎？

And what end markets?

什麼終端市場？

Okay.

好的。

So within cellular we are seeing this technology, substrate-like PCBs, really what it allows our customers to do is to get down below 30 microns in terms of lines and spacing; so much denser circuitry requirements.

因此，在蜂窩網絡中，我們看到了這種技術，類似基板的 PCB，它真正允許我們的客戶做的是將線和間距降低到 30 微米以下；如此密集的電路要求。

And that general trend is going to proliferate through other end markets.

而且這種總體趨勢將通過其他終端市場擴散。

Within cellular, beyond our largest customer, we've already now started to see adoption for high-end phones.

在蜂窩網絡中，除了我們最大的客戶之外，我們現在已經開始看到高端手機的採用。

That will certainly be enhanced by 5G.

5G 肯定會增強這一點。

We expect that as with the new chipsets that will be required for other applications with 5G, including Internet of Things-type applications and certainly automotive, we're going to start to see lines and spacing again moving down below that 30-micron level.

我們預計，與其他 5G 應用（包括物聯網類型的應用，當然還有汽車）所需的新芯片組一樣，我們將開始看到線和間距再次下降到 30 微米水平以下。

So there certainly are promising trends in terms of longer-term adoption in automotive, in networking/communications and in the MII area where again a lot of the Internet of Things goes into industrial-type applications.

因此，在汽車、網絡/通信和 MII 領域的長期採用方面肯定存在有希望的趨勢，其中許多物聯網再次進入工業型應用程序。

So you're going to start seeing movement of those requirements and again all of that being enabled by the new chipsets that are coming, or being required by the new chipsets that will come with 5G.

因此，您將開始看到這些要求的變化，並且即將到來的新芯片組支持所有這些要求，或者 5G 隨附的新芯片組需要這些要求。

So that's sort of where we sit today, Matt.

所以這就是我們今天坐的地方，馬特。

Our next question comes from Maynard Um, with Macquarie.

我們的下一個問題來自 Maynard Um 和 Macquarie。

On the auto side you were down, I think, 20% year-over-year versus the market down around 7% in Q1.

在汽車方面，我認為與去年同期相比下降了 20%，而第一季度市場下降了 7% 左右。

Are you exposed to any particular segment?

您接觸過任何特定的細分市場嗎？

Are you exposed more to the luxury segment?

您對奢侈品領域的了解更多嗎？

Are you fairly broad-based?

你的基礎相當廣泛嗎？

And given kind of the secular trends toward more electrification, I guess, why is there such a large disconnect?

考慮到更多電氣化的長期趨勢，我想，為什麼會有如此大的脫節？

And when could we see that gap maybe start to narrow?

我們什麼時候才能看到差距可能開始縮小？

Sure.

當然。

Thanks, Maynard.

謝謝，梅納德。

On the auto side, as we've gone through and certainly what we're talking about here is primarily the demand for conventional printed circuit boards, which is approximately 21% from a revenue standpoint of what we ship in the auto area.

在汽車方面，正如我們所經歷的那樣，當然我們在這裡談論的主要是對傳統印刷電路板的需求，從我們在汽車領域出貨的收入角度來看，這大約是 21%。

And as we look at that area, where we have seen particular year-on-year weakness has been in Europe, in our European shipments, and particularly being impacted by our customers' exposure on the diesel side.

當我們審視該地區時，我們看到歐洲的同比表現特別疲軟，尤其是我們的歐洲出貨量，尤其是受到我們客戶在柴油方面的風險敞口的影響。

And so that combination, of course they go together.

所以這種組合，當然他們一起去。

European demand and diesel demand being down certainly had an impact in terms of our shipments.

歐洲需求和柴油需求下降肯定對我們的出貨量產生了影響。

The other impact and that we've talked about and continues to be the case is in Asia, broadly written; particularly, in China.

另一個影響，我們已經討論過並繼續存在的情況是在亞洲，廣泛地寫在亞洲；特別是在中國。

And there we have seen year-on-year weakness and quarter-on-quarter weakness, as well, in Q1 versus the prior quarter.

與上一季度相比，我們在第一季度也看到了同比疲軟和環比疲軟。

So those are the 2 regions where we have particular concern.

因此，這些是我們特別關注的兩個區域。

I think, if anything, the 1 positive takeaway in terms of those regions is that we did see the downdraft on the European side ameliorate a bit on a quarter-to-quarter basis.

我認為，如果有的話，就這些地區而言，第一個積極的收穫是我們確實看到歐洲方面的下行趨勢按季度有所改善。

And so what we had been looking at for the quarter was our expectation that the European side would have worked through a lot of the inventories that they had.

因此，我們在本季度一直關注的是我們的預期，即歐洲方面會處理掉他們擁有的大量庫存。

It hasn't occurred as quickly as we had expected.

它並沒有像我們預期的那樣迅速發生。

But as we start to look towards the back half of this year, certainly we would expect that on both the European and Asia inventory hubs that inventories would be worked down so we'd start to see real demand levels again.

但當我們開始展望今年下半年時，我們當然會預計歐洲和亞洲的庫存中心都會減少庫存，因此我們將再次開始看到實際需求水平。

So that's where I would see shipment expectations as we sort of go through the course of the year.

因此，這就是我們在今年的過程中看到的出貨預期。

As you pointed out, the electrification of the automobile is an ongoing trend and one where the 19% of our advanced technologies really go into that area and then a little bit of our conventional production.

正如您所指出的，汽車的電氣化是一個持續的趨勢，我們 19% 的先進技術真正進入了該領域，然後是我們的一些傳統生產。

And I certainly agree with you that the longer-term trends continue to be very promising, but from a total unit standpoint still is small.

我當然同意你的看法，長期趨勢仍然非常有希望，但從總單位的角度來看仍然很小。

And so that's why you're seeing a larger impact from the conventional board side in terms of that downdraft; and again, particularly Europe, on a year-on-year basis.

因此，這就是為什麼您會看到傳統董事會在下降趨勢方面產生更大影響的原因；再次，尤其是歐洲，同比增長。

Got it.

知道了。

Okay.

好的。

That's helpful.

這很有幫助。

And then when you talk about reviewing the cost structure, can you just maybe talk about what segments or areas of the business you can see some of that cost structure improvement?

然後，當你談論審查成本結構時，你能不能談談你可以看到一些成本結構改進的業務部門或領域？

And I kind of ask that question given that some of your segments are obviously going to see some upcoming big growth drivers maybe over the next couple of years.

我有點問這個問題，因為你的一些細分市場顯然會在未來幾年內看到一些即將到來的巨大增長動力。

So I'm wondering how you'll look to balance cost optimization versus making sure you still have that infrastructure to fulfill that potential growth.

所以我想知道您將如何平衡成本優化與確保您仍然擁有該基礎設施來實現潛在增長。

Very well said, and exactly how we analyze our footprint.

說得很好，以及我們如何分析我們的足跡。

And obviously, with 29 facilities we are always looking at our facilities, we're looking at how they're performing, we're looking at their utilization rates, and we're looking at the customer base and the charter of those facilities.

顯然，對於 29 家設施，我們一直在關注我們的設施，我們正在研究它們的表現，我們正在研究它們的利用率，我們正在研究客戶群和這些設施的章程。

So what I can tell you is it's part of our DNA to look at where we can become more operationally efficient, how we can really maximize our operational performance, even when facilities are down in terms of utilization rates.

所以我可以告訴你的是，我們的 DNA 的一部分是研究我們可以在哪些方面提高運營效率，我們如何才能真正最大化我們的運營績效，即使設施的利用率下降也是如此。

That involves a lot of labor movement between facilities.

這涉及設施之間的大量勞動力流動。

It means that we put a lot of emphasis on our supply chain and how we're handling our material purchases.

這意味著我們非常重視我們的供應鏈以及我們如何處理我們的材料採購。

And then the maximization of yields for what we are producing, absolutely critical.

然後是我們正在生產的產品的產量最大化，這絕對是至關重要的。

So as we look across our footprint and we started looking at longer-term structural requirements, we will take that same discipline to the process.

因此，當我們審視我們的足跡並開始考慮更長期的結構要求時，我們將在流程中採用同樣的原則。

As we look at our footprint, we look at how full is the facility, what is the charter of the facility, what is the customer base and how could that customer base be transferred.

當我們查看我們的足跡時，我們會查看設施的滿載程度、設施的章程是什麼、客戶群是什麼以及如何轉移該客戶群。

So obviously a very important process for us to follow.

顯然，我們要遵循一個非常重要的流程。

And really what we are highlighting here is that we are looking at that.

我們在這裡真正強調的是，我們正在關注這一點。

We are looking at that footprint in terms of longer-term requirements of our end markets and customer base for exactly the reason that you highlighted so that, if anything, we come out of this soft period with a stronger, more capable footprint that can be optimized from a technical standpoint to meet customer needs.

我們正在根據我們的終端市場和客戶群的長期需求來審視這一足跡，這正是您強調的原因，因此，如果有的話，我們會以更強大、更有能力的足跡走出這個疲軟時期從技術角度優化以滿足客戶需求。

(Operator Instructions) Our next question comes from Steven Fox, with Cross Research.

（操作員說明）我們的下一個問題來自 Steven Fox 和 Cross Research。

I guess just following up on that, Tom, I'm trying to understand all of that in the context of where your utilization rates are right now and the expected improvements.

我想只是跟進一下，湯姆，我試圖在您現在的利用率和預期的改進的背景下理解所有這些。

Can you give us a hint on where you think they could go in the second half so that you're not coming back and writing down assets or inventory or something like that?

你能給我們一個提示，告訴我們你認為他們在下半年會去哪裡，這樣你就不會回來減記資產或庫存或類似的東西嗎？

What's the comfort level given all the comments you've made so far?

考慮到您到目前為止所做的所有評論，您的舒適度如何？

Sure, Steve.

當然，史蒂夫。

And when we're talking utilization rates, really I'm highlighting our Asia utilization rates.

當我們談論利用率時，我實際上是在強調我們的亞洲利用率。

As you know, our North America facilities, high-mix/low-volume facilities, utilization isn't a great measure to look at those facilities with.

如您所知，我們的北美設施、高混合/低容量設施、利用率並不是衡量這些設施的好方法。

But as we look at our Asia facilities, where we're comfortable operating is -- certainly when we're in that Q3/Q4 period, Steve, we need to be above the 80% level with those facilities.

但是，當我們審視我們的亞洲設施時，我們可以輕鬆運營的地方 - 當然，當我們在第三季度/第四季度期間，史蒂夫，我們需要在這些設施上達到 80% 以上的水平。

As you know, in years past we've been able to move them up above 90% and be even in the 95% range.

如您所知，在過去的幾年裡，我們已經能夠將它們提高到 90% 以上，甚至在 95% 的範圍內。

So being above 80% is sort of a marker of where we like to operate our facilities.

因此，超過 80% 是我們喜歡在哪裡運營設施的標誌。

Clearly, we're suboptimal right now.

顯然，我們現在不是最理想的。

We know that cellular will be coming back strong in Q3/Q4.

我們知道蜂窩將在第三季度/第四季度強勢回歸。

So those facilities will be certainly optimized as we come into Q3.

因此，當我們進入第三季度時，這些設施肯定會得到優化。

And it's really about the other parts of our commercial business and looking at the longer-term trends in those end markets and how that then impacts utilization rates.

這實際上是關於我們商業業務的其他部分，並著眼於這些終端市場的長期趨勢，以及這將如何影響利用率。

Great.

偉大的。

That's helpful.

這很有幫助。

And then just real quick, in terms of the auto weakness, are you saying that on the electro-mechanical side of the business, I know it's small, but that that wasn't weak and it was all board related?

然後很快，就汽車弱點而言，你是說在業務的機電方面，我知道它很小，但那並不弱，而且都與董事會有關？

Or were both of those functions weak?

或者這兩個功能都很弱？

Primarily board.

以板為主。

We had -- we were down a little bit on the EMS side but nothing to highlight.

我們有 - 我們在 EMS 方面有所下降，但沒有什麼值得強調的。

And as you said, it's not a major part of the business from a revenue standpoint.

正如你所說，從收入的角度來看，它不是業務的主要部分。

So really primarily that board area.

所以實際上主要是那個板區域。

And we have no further questioners at this time.

現在我們沒有其他提問者了。

I would now like to turn the conference back to Mr. Tom Edman for closing remarks.

我現在想把會議轉回 Tom Edman 先生作閉幕詞。

Thank you very much.

非常感謝你。

I'd just like to close by summarizing some of the key points that we made earlier.

最後，我想總結一下我們之前提出的一些要點。

First, we did deliver earnings in the guided range and we generated solid cash flow for the first quarter.

首先，我們確實在指導範圍內實現了收益，並且我們在第一季度產生了可觀的現金流。

And that was in the face of a relatively weak commercial environment.

那是面對相對薄弱的商業環境。

Second, while we're facing a challenging first half of the year, we continue to execute well on our core strategies of diversification, differentiation and discipline.

其次，儘管我們上半年面臨挑戰，但我們繼續在多元化、差異化和紀律化的核心戰略上執行良好。

And finally, I'd like to thank our employees, our customers and all of you, our investors, for your continued support.

最後，我要感謝我們的員工、我們的客戶以及你們所有人，我們的投資者，感謝你們一直以來的支持。

Thank you.

謝謝你。

Ladies and gentlemen, this concludes today's presentation.

女士們，先生們，今天的演講到此結束。

You may now disconnect.

您現在可以斷開連接。