Vishay Precision Group Inc (VPG) 2024 Q2 法說會逐字稿

Good morning all, and thank you for joining us for VPG's second-quarter fiscal 2024 earnings call. My name is Carly, and I'll be the call coordinator for today. (Operator Instructions)

大家早安，感謝您參加 VPG 2024 財年第二季財報電話會議。我叫卡莉，我將擔任今天的通話協調員。（操作員說明）

I would now hand over to your host Steve Cantor, Senior Director of Investor Relations, to begin. Steve, please go ahead.

現在請主持人投資者關係高級總監 Steve Cantor 開始發言。史蒂夫，請繼續。

Thank you, Carly, and good morning, everyone. Welcome to VPG's 2024 second-quarter earnings conference call. Our Q2 press release and accompanying slides have been posted on the VPG website at vpgsensors.com, and audio recording of today's call will be available on the internet for a limited time and can also be accessed on our website.

謝謝你，卡莉，大家早安。歡迎參加 VPG 2024 年第二季財報電話會議。我們的第二季新聞稿和隨附幻燈片已發佈在 VPG 網站 vpgsensors.com 上，今天通話的錄音將在有限時間內在互聯網上提供，也可以在我們的網站上訪問。

Today's remarks are governed by the Safe Harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward-looking statements. For a discussion of the risks associated with VPG's operations, we encourage you to refer to our SEC filings, especially the Form 10-K for the year ended December 31, 2023, and our other recent SEC filings.

今天的言論受 1995 年《私人證券訴訟改革法案》的安全港條款管轄。我們的實際結果可能與前瞻性陳述有所不同。如需討論與 VPG 營運相關的風險，我們鼓勵您參考我們向 SEC 提交的文件，尤其是截至 2023 年 12 月 31 日的年度 10-K 表格，以及我們最近向 SEC 提交的其他文件。

On the call today are Ziv Shoshani, CEO and President; and Bill Clancy, CFO.

今天參加電話會議的是執行長兼總裁 Ziv Shoshani；和財務長比爾·克蘭西。

And now, I'll turn the call to Ziv for some prepared remarks.

現在，我將把電話轉給齊夫，請其發表一些準備好的演講。

Thank you, Steve. I will begin with some commentary on VPG's consolidated financial results, and sales trends for the second quarter. Bill will provide financial details about the quarter, and our outlook for the third quarter of 2024.

謝謝你，史蒂夫。我將首先對 VPG 的綜合財務業績和第二季的銷售趨勢進行一些評論。Bill 將提供有關本季度的財務詳細資訊以及我們對 2024 年第三季的展望。

Moving to slide 3, overall, our second quarter was as follows. Sales trends continue to reflect a mixed market environment. Revenues grew sequentially in some of our markets, while other markets remained soft. Similarly, order trends were mixed with sequentially growth in the measurement systems offset by lower orders in sensors, and weighing solutions.

轉到投影片 3，總體而言，我們第二季的情況如下。銷售趨勢持續反映了複雜的市場環境。我們的部分市場的收入連續成長，而其他市場仍然疲軟。同樣，訂單趨勢與測量系統的連續增長混合在一起，被感測器和稱重解決方案的訂單減少所抵消。

We achieved a solid gross margin in light of our revenue levels, as we adjusted our operations effectively to current revenue levels, and expanded our cost reduction programs. Customer engagement remains high as we continue our focus on our business development initiatives.

鑑於我們的收入水平，我們實現了穩健的毛利率，因為我們有效地將業務調整到當前的收入水平，並擴大了成本削減計劃。隨著我們繼續專注於業務發展計劃，客戶參與度仍然很高。

Our strong balance sheet and solid free cash flow, provides a good foundation for organic and inorganic growth. We expect the macro environment to be stable to the end of 2024, with mixed trends continuing in our markets.

我們強大的資產負債表和穩定的自由現金流為有機和無機成長提供了良好的基礎。我們預期宏觀環境將穩定到 2024 年底，我們的市場將繼續呈現混合趨勢。

Moving to slide 4, looking at the second-quarter results in detail, we reported sales of $77.4 million, which were 14.8% lower than a year ago, and 4.2% lower sequentially. Orders of $73.5 million softened modestly from $75.3 million in the first quarter. Our book-to-bill ratio improved slightly to 0.95. We are seeing mixed trends in our markets.

轉向投影片 4，詳細查看第二季業績，我們報告銷售額為 7,740 萬美元，比去年同期下降 14.8%，比上一季下降 4.2%。訂單量為 7,350 萬美元，較第一季的 7,530 萬美元略有下降。我們的訂單出貨比略有改善至 0.95。我們看到市場的趨勢好壞參半。

Bookings were soft in the test and measurement, avionic military and space, and industrial weighing. However, orders grew for consumer-related applications and in our transportation and steel markets. Regarding our strategic business development initiatives, we are seeing the early results of these efforts in terms of design wins, and initial orders with new customers and additional applications, and projects with existing ones.

測試和測量、航空電子、軍事和航太以及工業稱重領域的預訂量疲軟。然而，消費者相關應用以及運輸和鋼鐵市場的訂單有所增長。關於我們的策略性業務發展計劃，我們正在看到這些努力在設計獲勝、新客戶和其他應用程式的初始訂單以及現有應用程式專案方面的早期成果。

Our gross margin of 41.9%, declined from a record of 43.4% in the first quarter, reflecting lower sales in the second quarter. We generated $10.2 million of adjusted EBITDA, $7.5 million of cash from operations, and $4.9 million of adjusted free cash flow, which supports our capital allocation strategy to grow stockholders' value. I'll now review our business segment performance for the second quarter.

我們的毛利率為 41.9%，較第一季創紀錄的 43.4% 有所下降，反映出第二季銷售額的下降。我們產生了 1,020 萬美元的調整後 EBITDA、750 萬美元的營運現金和 490 萬美元的調整後自由現金流，這支持我們提高股東價值的資本分配策略。我現在將回顧第二季我們的業務部門業績。

Moving to slide 5, beginning with our sensors segment, second-quarter revenue of $28.9 million declined 20.4% from a year ago and was 1.9% lower sequentially. Compared to the first quarter, sales growth in advanced sensors products was offset, by lower sales of our precision resistors. Sales of advanced sensors and related strain gauge products grew 17% from Q1 on the strength in consumer applications.

轉到投影片 5，從我們的感測器部門開始，第二季營收為 2,890 萬美元，比去年同期下降 20.4%，比上一季下降 1.9%。與第一季相比，先進感測器產品的銷售成長被精密電阻器銷售額的下降所抵消。由於消費性應用的強勁成長，先進感測器和相關應變儀產品的銷售額較第一季成長了 17%。

Sales of precision resistors to the test and measurement market were softer, particularly in Asia. While second-quarter orders for sensors of $26.1 million, were slightly lower sequentially, bookings for advanced sensors grew 20%. Orders for our resistor products were soft, particularly in the test and measurement market in Asia.

測試和測量市場的精密電阻器銷售疲軟，尤其是在亞洲。雖然第二季感測器訂單額為 2,610 萬美元，比上一季略有下降，但先進感測器的訂單量增加了 20%。我們的電阻器產品訂單疲軟，尤其是在亞洲的測試和測量市場。

Strategically, in the advanced sensors, we continue to address additional opportunities in both high-end road bikes and e-bikes with European and Asian bike makers. These applications use our sensors to precisely measure the force of every pedal stroke. This helps professional and high-end bike riders train more efficiently. In addition, we received a substantial R&D order, for a developer of robotics for medical applications.

從戰略上講，在先進感測器方面，我們繼續與歐洲和亞洲自行車製造商合作，在高端公路自行車和電動自行車領域尋求更多機會。這些應用使用我們的感測器來精確測量每個踏板行程的力量。這有助於專業和高端自行車騎士更有效地訓練。此外，我們也收到了大量針對醫療應用機器人開發商的研發訂單。

Our project with a leading developer of a humanoid robot, continues to progress well as we recorded revenue related to prototypes for this project. This customer expects to deploy several thousands of these robots in its factories, by the end of 2025. Book-to-bill ratio for sensors was 0.9.

我們與領先的人形機器人開發商合作的專案繼續進展順利，我們記錄了與該專案原型相關的收入。該客戶預計到 2025 年底將在其工廠部署數千台此類機器人。感測器的訂單出貨比為 0.9。

Moving to slide 6, turning to our weighing solutions segment, second-quarter sales of $27.4 million were 12.2% lower than a year ago, and 4.8% below the first quarter of 2024. Sequentially, the decline reflected lower revenue in the transportation market while revenue in our industrial market was roughly flat. The book-to-bill ratio for weighing solutions was 0.93. Orders of $25.5 million declined 7.3% from the first quarter.

轉到投影片 6，轉向我們的稱重解決方案領域，第二季銷售額為 2740 萬美元，比去年同期下降 12.2%，比 2024 年第一季下降 4.8%。隨後，下降反映了運輸市場收入的下降，而工業市場的收入大致持平。稱重解決方案的訂單出貨比為 0.93。訂單金額為 2,550 萬美元，較第一季下降 7.3%。

The lower orders were primarily in the transportation market for process weighing and onboard weighing systems. In terms of business development initiatives for weighing solutions, we are developing a variety of solutions and applications for existing and new customers in the medical and lab automation, construction and transportation markets.

較低的訂單主要來自製程稱重和車載稱重系統的運輸市場。在稱重解決方案的業務開發計劃方面，我們正在為醫療和實驗室自動化、建築和運輸市場的現有和新客戶開發各種解決方案和應用程式。

Moving to slide 7, turning to our measurement system segment, second-quarter revenue of $21 million declined 9.6% from a year ago and 6.6% sequentially. The sequential decline was driven by lower sales of DTS safety testing products in AMS and the transportation end markets. Book-to-bill ratio for measurement systems was 1.04, as orders of $21.9 million improved 3.8% from the first quarter.

轉到投影片 7，轉向我們的測量系統部門，第二季營收為 2,100 萬美元，比去年同期下降 9.6%，比上一季下降 6.6%。持續下降的原因是 DTS 安全測試產品在 AMS 和運輸終端市場的銷售量下降。測量系統的訂單出貨比為 1.04，訂單金額為 2,190 萬美元，較第一季成長 3.8%。

Sequentially, orders grew for the DSI comprehensive tools for the development of new metal alloys, while bookings for the DTS and KELK steel productivity systems were softer. As we have discussed, order pattern can fluctuate quarter to quarter due to the timing of customer projects and the long lead times of these products. We continue to be encouraged by our business development activity in the measurement systems.

隨後，用於開發新金屬合金的 DSI 綜合工具的訂單增加，而 DTS 和 KELK 鋼鐵生產系統的訂單則較為疲軟。正如我們所討論的，由於客戶專案的時間表和這些產品的交貨時間較長，訂單模式可能會按季度波動。我們在測量系統方面的業務發展活動繼續鼓舞著我們。

In the current quarter, we expect to have the first aluminum manufacturing customer evaluation of our KELK optimization system, using our optical technology. As we have discussed, the industrial aluminum manufacturing is a new potential adjacent market for us. We believe our solution can offer important cost savings, for these customers in terms of reduced downtime and waste.

在本季度，我們預計將有第一個鋁製造客戶使用我們的光學技術對我們的 KELK 優化系統進行評估。正如我們所討論的，工業鋁製造對我們來說是一個新的潛在相鄰市場。我們相信我們的解決方案可以為這些客戶節省大量成本，減少停機時間和浪費。

For DSI, we expanded our offering of our Gleeble thermal-mechanical physical simulation tool, for developing new metal alloys with modules that can efficiently test smaller sample size. This capability opens a new market for DSI in the additive material manufacturing equipment market, for applications such as commercial 3D metal printers.

對於 DSI，我們擴展了 Gleeble 熱機械物理模擬工具的產品範圍，用於開發新的金屬合金，其模組可以有效地測試較小的樣本量。這項功能為 DSI 在積層製造設備市場中開闢了一個新市場，適用於商業 3D 金屬列印機等應用。

Moving to slide 8, before turning the call to Bill, I want to comment on our capital allocation strategy. Given our balance sheet and the free cash flow generation, we believe that we can create stockholders' value to organic growth, successful M&A, and as warranted, stock repurchases. During the quarter, we repurchased $3.1 million of our stock, or 97,000 shares.

前往投影片 8，在打電話給 Bill 之前，我想先評論一下我們的資本配置策略。考慮到我們的資產負債表和自由現金流的產生，我們相信我們可以為有機成長、成功的併購以及保證的股票回購創造股東價值。本季度，我們回購了價值 310 萬美元的股票，即 97,000 股。

In closing, we continue to focus on our strategic initiatives in both business development activities, and cost reduction programs. These actions are positioning VPG, to realize the significant long-term earnings power, embedded in our business model.

最後，我們持續關注業務發展活動和成本削減計畫的策略性舉措。這些行動使 VPG 能夠實現顯著的長期獲利能力，並將其融入我們的商業模式中。

I will now turn it over to Bill Clancy for additional financial details. Bill?

我現在將其轉交給比爾·克蘭西以獲取更多財務細節。帳單？

Thanks, Ziv.

謝謝，齊夫。

Referring to slide 9 and the reconciliation tables of the slide deck, our second-quarter revenues declined 4.2% from the first quarter and were 14.8% below the second quarter a year ago. Adjusted gross margin in the second quarter of 41.9%, compared to 43.4% in the first quarter, due to lower volume and unfavorable product mix.

參考投影片 9 和投影片的調節表，我們第二季的營收比第一季下降了 4.2%，比一年前第二季下降了 14.8%。由於銷量下降和不利的產品組合，第二季調整後毛利率為 41.9%，而第一季為 43.4%。

By segment, gross margin for the sensors segment of 38.3% improved sequentially, primarily due to improved efficiencies. The weighing solutions gross margin of 37.6% was lower than the first quarter, primarily due to lower volume.

以細分市場來看，感測器細分市場的毛利率環比提高了 38.3%，這主要是由於效率的提高。稱重解決方案的毛利率為 37.6%，低於第一季，主要是由於銷量下降。

Measurement systems and gross margin of 37.6% was lower than the first quarter, primarily due to lower volume. Measurement systems gross margin of 52.4% declined sequentially, reflecting lower volume with an unfavorable product mix.

測量系統的毛利率為 37.6%，低於第一季，主要是由於銷量下降。測量系統毛利率季減 52.4%，反映出銷量下降和產品結構不利。

Total selling, general, and administrative expenses for the second quarter were $26.5 million, or 34.3% of revenues, as compared to $27.4 million, or 33.9% of revenues for the first quarter of 2024. The sequential decrease in SG&A of $900,000 was mainly attributable, to a reduction of bonus reserve accruals.

第二季的銷售、一般和管理費用總額為 2,650 萬美元，佔營收的 34.3%，而 2024 年第一季為 2,740 萬美元，佔營收的 33.9%。SG&A 環比減少 90 萬美元，主要是由於應計獎金準備金減少。

Operating margin was 7.6%, as compared to 8.6% for the first quarter. The adjusted operating margin in the second quarter was 7.6%, as compared to 10% in the first quarter of 2024, primarily reflecting the lower revenue. The adjusted net earnings for the second quarter were $4.2 million, with $0.31 per diluted share, which compared to $5.7 million, or $0.42 per diluted share in the first quarter of 2024.

營業利益率為 7.6%，而第一季為 8.6%。第二季調整後營業利潤率為 7.6%，而 2024 年第一季為 10%，主要反映了營收下降。第二季調整後淨利為 420 萬美元，稀釋後每股收益 0.31 美元，而 2024 年第一季調整後淨利為 570 萬美元，稀釋後每股收益 0.42 美元。

Adjusted EBITDA was $10.2 million, but 13.2% of revenue, compared to $12.3 million, or 15.3% in the first quarter of 2024. Purchased CapEx in the second quarter was $2.6 million. For the full fiscal year of 2024, we expect purchased CapEx to be in the range of $10 million to $12 million, which is significantly lower, than the levels we have spent over the past few years.

調整後 EBITDA 為 1,020 萬美元，佔營收的 13.2%，而 2024 年第一季為 1,230 萬美元，佔營收的 15.3%。第二季購買的資本支出為 260 萬美元。對於 2024 年整個財年，我們預計購買的資本支出將在 1,000 萬至 1,200 萬美元之間，這明顯低於我們過去幾年的支出水準。

Adjusted free cash flow was $4.9 million, which increased from $4.2 million for the first quarter. We define adjusted free cash flow as cash from operating activities of $7.5 million, less capital expenditures of $2.6 million.

調整後自由現金流為 490 萬美元，較第一季的 420 萬美元增加。我們將調整後的自由現金流定義為經營活動產生的現金 750 萬美元減去資本支出 260 萬美元。

The GAAP tax rate in the second quarter was 33.3%, as compared to 28.4% in the first quarter of 2024, primarily reflecting a higher proportion of income, and higher tax rate jurisdictions. The second-quarter operational tax rate was 27%. We are assuming an operational tax rate in the range of 26% to 28% for the full year of 2024.

第二季的 GAAP 稅率為 33.3%，而 2024 年第一季為 28.4%，主要反映了收入比例較高以及稅率較高的司法管轄區。第二季營業稅率為27%。我們假設 2024 年全年的營業稅率在 26% 至 28% 之間。

Moving to slide 10, we ended the second quarter with $84.1 million of cash and cash equivalents and total debt of $31.9 million, which was classified as a current liability. I want to note that we have realized approximately $900,000 in net interest savings, through the first half of 2024, as a result of our debt paydown in 2023.

轉向投影片 10，我們第二季末的現金和現金等價物為 8,410 萬美元，總負債為 3,190 萬美元，被歸類為流動負債。我想指出的是，由於我們在 2023 年償還了債務，到 2024 年上半年，我們已經實現了約 90 萬美元的淨利息節省。

Regarding the outlook for the third fiscal quarter, given the current market conditions and our backlog, we expect net revenues to be in the range of $70 million to $78 million at constant second fiscal quarter 2024 exchange rates.

關於第三財季的前景，考慮到當前的市場狀況和我們的積壓，我們預計淨收入將在 2024 年第二財季不變匯率下在 7,000 萬美元至 7,800 萬美元之間。

In summary, we've adjusted our operations effectively to current revenue levels. We've generated solid cash flow and continue to repurchase our common stock. And we continue our focus on strategic business development, and cost savings initiatives.

總之，我們已經有效地將我們的營運調整到當前的收入水平。我們已經產生了穩定的現金流，並繼續回購我們的普通股。我們繼續專注於策略性業務發展和成本節約計劃。

With that, let's open the lines for questions. Thank you.

接下來，讓我們開始提問。謝謝。

(Operator Instructions) Griffin Boss, B. Riley.

（操作員說明）Griffin Boss，B. Riley。

Hi. Good morning, Ziv, Bill. Thanks for taking my questions. So first from me, you laid out your three to five-year targets for revenue growth and margin expansion back in February of 2022. Now that we're about six months from the front end of that range and macro uncertainty remains and perhaps is even growing, how viable do you see those targets today?

你好。早上好，齊夫，比爾。感謝您回答我的問題。首先，您在 2022 年 2 月就制定了收入成長和利潤擴張的三到五年目標。現在距離範圍的前端還有大約六個月的時間，宏觀不確定性仍然存在，甚至可能還在增加，您今天認為這些目標的可行性如何？

Good morning, Griffin. When we developed the three to five-year plan back in 2022, naturally we have not foreseen the downturn, I would say, in the marketplace. Nevertheless, I still believe that the plan we have provided is very much viable, given the fact that based on the discussions that we had with our large OEMs and the initial outlook that we have been looking for an initial recovery in the second half of 2024, which, at this point in time, we are looking moving the initial recovery based on the discussion we had with our large OEMs and their earnings release as well.

早上好，格里芬。我想說，當我們在 2022 年制定三到五年計畫時，我們自然沒有預見市場的低迷。儘管如此，我仍然相信我們提供的計劃非常可行，因為基於我們與大型原始設備製造商的討論以及我們一直在尋求 2024 年下半年初步復甦的初步前景，目前，我們正在根據我們與大型原始設備製造商的討論及其收益發布來考慮推動最初的復甦。

The correlation with the earnings release, we foresee the recovery starting as of 2025. In addition to our extensive business development activities, which should generate new, I would say, we would expect it to generate significant revenue with new projects. I do believe that the plan we have laid back in 2022 is still viable, and the plan for the company is still to meet that.

與收益發布的相關性，我們預計從 2025 年開始復甦。除了我們廣泛的業務開發活動（這應該會產生新的）之外，我想說，我們預計它會透過新項目產生可觀的收入。我確實相信我們在 2022 年制定的計劃仍然可行，公司的計劃仍然是為了實現這一目標。

Okay. Great. Thanks for the colors, Ziv. On that note, the revenue growth targets obviously implied meaningful inorganic contribution. Can you just discuss a little bit more what you're seeing on the M&A front, how that process has progressed throughout the year?

好的。偉大的。謝謝你的顏色，Ziv。在這一點上，收入成長目標顯然意味著有意義的無機貢獻。您能否再多討論一下您在併購方面所看到的情況以及這一過程在這一年中的進展？

On the M&A front, it was, I would say that on the M&A front, we still have seen deals with some lower multiples. We have been in, I would say, in discussion with a few companies. At this point in time, unfortunately, I have nothing to report, but I do feel that the M&A landscape is going to be more.

在併購方面，我想說的是，在併購方面，我們仍然看到一些市盈率較低的交易。我想說，我們已經與幾家公司進行了討論。不幸的是，目前我沒有什麼好報告的，但我確實覺得併購前景將會更加廣闊。

I would say, more reasonable at a much better, I would say, at a much better closing, or I would say at a much better deal as we move forward. So I would say that, unfortunately, we were not able to execute, but I do think that we are going to be much more optimistic about M&A, as we move forward.

我會說，更合理，更好，我會說，在更好的收盤中，或者我會說，隨著我們前進，我們會達成更好的協議。所以我想說，不幸的是，我們無法執行，但我確實認為，隨著我們的前進，我們將對併購更加樂觀。

Okay. Great. Makes sense. Thanks, Ziv. And just turning to a model question here, the gross margin, SG&A, both came in below our expectations, obviously, gross margin because of the lower volume. SG&A, the ongoing cost reduction initiatives, which is great to see. Is it fair to assume that those trends, are going to continue into the back half of the year, just given the expectation for Q3 top line?

好的。偉大的。有道理。謝謝，齊夫。回到這裡的模型問題，毛利率、SG&A 都低於我們的預期，顯然，毛利率是因為銷售量較低。SG&A，持續的成本削減舉措，這是很值得一看的。考慮到第三季營收的預期，假設這些趨勢將持續到今年下半年是否公平？

The gross margin, we are looking at a similar revenue level at a similar exchange rate. The gross margin is sustainable. And the SG&A Bill will provide more color regarding the SG&A.

在毛利率方面，我們正在以相似的匯率考慮相似的收入水準。毛利率是可持續的。SG&A 法案將提供更多關於 SG&A 的內容。

So Griffin, on the SG&A, we were at $26.5 million for Q2, which included some bonus adjustments. It would only be slightly higher for Q3, so trending similar to where we were, slightly higher.

因此，Griffin 在 SG&A 方面，第二季我們的營收為 2,650 萬美元，其中包括一些獎金調整。第三季只會略高，因此趨勢與我們的情況相似，略高。

Okay. Great. All right. Thanks. And then just last from me, I guess more broadly, obviously, the past 12 months have been tough. I think the company has been navigating the environment very well. But just looking forward, aside from the ongoing cost reduction initiatives, what gets you most excited for the future in terms of trends, or business opportunities?

好的。偉大的。好的。謝謝。最後我想說的是，我想更廣泛地說，過去 12 個月顯然很艱難。我認為該公司在環境方面做得很好。但展望未來，除了持續的成本削減措施之外，未來的趨勢或商業機會最讓您興奮的是什麼？

What gets me most excited, is our business development initiatives. We are working very diligently, and we have enhanced our business development resources. And I would say each of the reporting segments is working with some, I would say, with some key OEMs in order to develop high volume revenues. As I've indicated during the call, we have, on the sensors side, the humanoid projects.

最讓我興奮的是我們的業務發展計畫。我們非常努力地工作，並且增強了我們的業務發展資源。我想說的是，每個報告部門都在與一些關鍵的原始設備製造商合作，以開發大量收入。正如我在電話會議中指出的那樣，我們在感測器方​​面有人形項目。

We have some medical robotics applications. We have the consumer electric bike and high-end bikes. We have inventory management on the weighing solutions. We have some large OEM construction designs. On the measurement systems, we have, on the DSI, the additive production ceramic-based testing.

我們有一些醫療機器人應用。我們有消費性電動自行車和高端自行車。我們對稱重解決方案進行庫存管理。我們有一些大型 OEM 建築設計。在測量系統上，我們在 DSI 上進行了基於陶瓷的增材生產測試。

So all those projects, which are in an initial design cycle, should generate a substantial amount of revenue in the future. And this is what I'm really excited about, the improvement and the acceleration of organic growth, for the company in the coming years.

因此，所有這些處於初始設計週期的專案都應該在未來產生大量收入。這就是我真正感到興奮的地方，即公司在未來幾年內有機成長的改善和加速。

Great. That's excellent. Thanks, Ziv. And thank you for taking my questions.

偉大的。那太好了。謝謝，齊夫。感謝您回答我的問題。

John Franzreb, Sidoti & Company.

約翰‧弗蘭茲雷布 (John Franzreb)，西多蒂公司 (Sidoti & Company)。

Good morning, guys, and thanks for taking the questions. I'd actually like to take a step back and Ziv, maybe talk about in the beginning of the year until today. When you look back at the revenue profile, what business was far weaker than you thought now, than you thought maybe in the beginning of the year?

早上好，夥計們，感謝您提出問題。我實際上想退後一步，Ziv，也許會在今年年初直到今天談論。當你回顧收入狀況時，哪些業務比你現在想像的要弱得多，比你年初想像的要弱得多？

Okay. That's a great question, John. Our outlook going into the year, was for an initial recovery in the second half of 2024, which was based on a more optimistic expectation from our customers. We have received indications from many of our OEM customers that, their expectation for an upturn has been pushed from the second half of 2024 to 2025.

好的。這是一個很好的問題，約翰。我們對今年的展望是 2024 年下半年初步復甦，這是基於客戶更樂觀的期望。我們從許多 OEM 客戶收到指示，他們對經濟好轉的預期已從 2024 年下半年推遲到 2025 年。

We have seen this mainly in precision agriculture, industrial, construction, and also semiconductor test and measurement. So those would be the main end markets, where we have expected an upturn in the second half of this year, which at this point in time, based on the discussions with them, they are looking for a push-up for 2025. In terms of our outlook for the rest of the year, we expect order to be flattish, reflecting continuing mixed trends in our end markets.

我們主要在精準農業、工業、建築以及半導體測試和測量中看到了這一點。因此，這些將是主要的終端市場，我們預計今年下半年將出現好轉，目前，根據與他們的討論，他們正在尋找 2025 年的俯臥撐市場。就我們今年剩餘時間的前景而言，我們預計訂單將持平，反映出終端市場持續的混合趨勢。

Yes, some of those end markets that you just mentioned are interest rate sensitive. Would it be fair to assume that interest rate cuts would be certainly a positive for those end markets?

是的，您剛才提到的一些終端市場對利率敏感。是否可以公平地假設降息肯定會對這些終端市場產生正面影響？

Yes. This is correct, John. If we are looking at the large capital investment like construction, like precision ag, definitely test and measurement. Those markets would be influenced by the interest rates. And once the interest rates are expected to drop, we would see, I would say, an improvement in their business activity.

是的。這是正確的，約翰。如果我們關注像建築、精密農業這樣的大型資本投資，那麼肯定是測試和測量。這些市場將受到利率的影響。我想說，一旦利率預計下降，我們就會看到他們的商業活動有所改善。

And it seemed to me in your prepared remarks, there is an increased emphasis on the advanced sensor business again. Are you seeing more interest in that product line? Can you just kind of elaborate, why the increased verbiage on it?

在我看來，在您準備好的發言中，人們再次更加重視先進感測器業務。您是否發現對該產品線更感興趣？您能否詳細說明一下，為什麼要增加冗長的措辭？

Yes. Okay. So one, we had a good positive sign of an increase of 21% in bookings in terms of consumer electronics in respect to prior quarter. And I do believe that we are very, very excited given the business development initiatives in advanced sensors. The fact that the business environment is soft, only emphasize how important it is to continue and promote the business development activities in order to assure the long-term growth of the company.

是的。好的。因此，我們看到了一個良好的正面跡象，消費性電子產品的預訂量較上一季成長了 21%。我確實相信，鑑於先進感測器的業務開發計劃，我們非常非常興奮。經營環境的軟性，更凸顯了持續推動業務發展活動對於確保公司長期發展的重要性。

A project like the humanoid project, which this year should result in hundreds of thousands of dollars of revenue only at the prototype level. The large R&D order, a significant R&D order for medical robotics and e-bike are only an indication regarding customer engagement, and the potential growth for high value dollar accounts. And this is what the business is focusing on.

像人形項目這樣的項目，今年僅在原型層面就應該帶來數十萬美元的收入。大型研發訂單、醫療機器人和電動自行車的重要研發訂單僅顯示客戶參與度以及高價值帳戶的潛在成長。而這正是企業所關注的重點。

So we understand that there is a short-term business environment, but the company is very much focused and driven, on pushing those business development activities. And this is why, since the team and myself are very excited about, and this is only one platform, about advanced sensors, this is why we are discussing this product line.

因此，我們知道存在短期的商業環境，但公司非常專注並推動推動這些業務發展活動。這就是為什麼，因為團隊和我自己都非常興奮，而且這只是一個關於先進感測器的平台，這就是為什麼我們正在討論這個產品線。

Understood. And I guess if we kind of look at it, that so the business is slower than expected, but across the whole portfolio, if I wanted to like identify what business line would indicate things are starting to turn around, the proverbial green shoots. When you look at your portfolio, where would you expect to see a turnaround first emerge?

明白了。我想，如果我們仔細觀察一下，就會發現業務比預期要慢，但在整個投資組合中，如果我想確定哪些業務線將表明事情正在開始好轉，即眾所周知的綠芽。當您審視您的投資組合時，您預期哪裡會先出現好轉？

If I'm looking, when we speak about turnaround, there are two verticals. One is a true demand in the market, while the other one is going to the end of the cycle of depletion of inventory. I do believe that one of the business segments that, we should expect to see by the end of the year, a faster depletion of the inventory and an initial indication of recovery, is test and measurement.

如果我看的話，當我們談論週轉時，有兩個垂直方向。一是市場真正有需求，二是庫存消耗週期即將結束。我確實相信，到今年年底，我們應該會看到庫存更快耗盡並初步出現復甦跡象的業務部門之一是測試和測量。

During those discussions with customers, we have a -- during the discussions, we understand that they are getting to the end cycle of the inventory level, and they would expect, beginning of next year, to start placing orders. As we have discussed earlier, other markets could be more dependent on interest rates. So once interest rate -- once there is an indication of a reduction of the interest rates.

在與客戶的討論中，我們了解到他們正在進入庫存水準的結束週期，他們預計從明年初開始下訂單。正如我們之前討論的，其他市場可能更依賴利率。一旦有利率下降的跡象。

I think that customers would be more willing to start investing in big projects and start investing more in inventory. We should -- please also bear in mind that the inventory Q cycle at EMS and at distribution is very, very low, given the high interest rates and the cost of holding inventory. So I would expect that this would also change, as interest rates would start to go down.

我認為客戶會更願意開始投資大型專案並開始增加庫存投資。我們還應該記住，考慮到高利率和持有庫存的成本，EMS 和分銷的庫存 Q 週期非常非常低。因此，我預計隨著利率開始下降，這種情況也會改變。

Understood. Thank you, Ziv, for taking my questions. I'll get back at the queue.

明白了。謝謝你，齊夫，回答我的問題。我會回到隊列。

(Operator Instructions) It would appear we have no further questions, so I will hand back to Steve Cantor, Senior Director of Investor Relations, for closing remarks.

（操作員說明）看來我們沒有其他問題了，所以我將請投資者關係高級總監 Steve Cantor 發表結束語。

Thank you all for joining the call. I want to note that we will be participating in the Jefferies Conference on September 4. You can check our website for additional details. Again, thank you, all, and have a good day. Bye.

感謝大家加入通話。我想指出的是，我們將參加 9 月 4 日舉行的 Jefferies 會議。您可以查看我們的網站以了解更多詳細資訊。再次感謝大家，祝福大家有美好的一天。再見。

This concludes today's call. Thank you to everyone for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家的加入。現在您可以斷開線路。