Varex Imaging Corp (VREX) 2022 Q4 法說會逐字稿

Hello, and welcome to the Varex Fourth Quarter Fiscal Year 2022 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Varex 2022 財年第四季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It's now my pleasure to turn the call over to Christopher Belfiore, Director of Investor Relations, please go ahead.

現在我很高興將電話轉給投資者關係總監 Christopher Belfiore，請繼續。

Good afternoon, and welcome to Varex Imaging Corporation's earnings conference call for the Fourth Quarter of Fiscal year 2022. With me today are Sunny Sanyal, our President and CEO; and Sam Maheshwari, our CFO.

下午好，歡迎參加 Varex Imaging Corporation 2022 財年第四季的收益電話會議。今天與我在一起的是我們的總裁兼執行長 Sunny Sanyal；以及我們的財務長 Sam Maheshwari。

Please note that the live webcast of this conference call includes a supplemental slide presentation that can be accessed at Varex' website at vareximaging.com/news. The webcast and supplemental slide presentation will be archived on Varex' website.

請注意，本次電話會議的網路直播包括補充幻燈片演示，可在 Varex 網站 vareximaging.com/news 上存取。網路廣播和補充幻燈片簡報將存檔在 Varex 的網站上。

To simplify our discussion, unless otherwise stated, all references to the quarter are for the fourth quarter of fiscal year 2022. In addition, unless otherwise stated, quarterly comparisons are made sequentially from the fourth quarter of fiscal year 2022 to the third quarter of fiscal year 2022 rather than to the same quarter of the prior year. Finally, all references to the year are to the fiscal year and not calendar year, unless otherwise stated.

為了簡化我們的討論，除非另有說明，所有提及季度的數據均指2022 財年第四季度。此外，除非另有說明，季度比較均從2022 財年第四季度到2022 財年第三季度依序進行。2022 年，而不是 上一年度的同一季度。最後，除非另有說明，所有提及年份的內容均指財政年度而非日曆年。

Please be advised that during this call, we will be making forward-looking statements, which are predictions and projections about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Risks relating to our business are described in our quarterly earnings release and our filings with the SEC.

請注意，在本次電話會議中，我們將做出前瞻性聲明，即對未來事件的預測和預測。這些陳述是基於目前的預期和假設，這些預期和假設存在風險和不確定性，可能導致實際結果與預期有重大差異。我們的季度收益報告和向 SEC 提交的文件中描述了與我們業務相關的風險。

Additional information concerning factors that could cause actual results to materially differ from those anticipated is contained in our SEC filings, including Item 1A, Risk Factors of our quarterly reports on Form 10-Q and our annual report on Form 10-K. The information in this discussion speaks as of today's date, and we assume no obligation to update or revise the forward-looking statements in this discussion.

有關可能導致實際結果與預期結果有重大差異的因素的更多資​​訊包含在我們向 SEC 提交的文件中，包括表 10-Q 季報告和表 10-K 年度報告的第 1A 項「風險因素」。本次討論中的資訊截至今天為止，我們不承擔更新或修改本次討論中的前瞻性陳述的義務。

On today's call, we will discuss certain non-GAAP financial measures. These non-GAAP measures are not presented in accordance with, nor are they a substitute for GAAP financial measures. We provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure in our earnings press release, which is posted on our website.

在今天的電話會議上，我們將討論某些非公認會計準則財務指標。這些非公認會計準則衡量指標並非依照公認會計準則財務衡量指標提出，也不能取代公認會計準則財務衡量指標。我們在我們網站上發布的收益新聞稿中提供了每項非公認會計原則財務指標與最直接可比較的公認會計原則財務指標的調節表。

I will now turn the call over to Sunny.

我現在將把電話轉給 Sunny。

Thank you, Chris, and good afternoon, everyone. I'm pleased to announce a strong finish to another fiscal year with revenues reaching $231 million in the quarter, a new quarterly record for Varex.

謝謝克里斯，大家下午好。我很高興地宣布又一個財年圓滿結束，本季營收達到 2.31 億美元，創下 Varex 的新季紀錄。

Global demand for our products were solid during the quarter and a slowly improving supply chain and our supplier diversification efforts allowed us to convert more orders to sales. As we start a new fiscal year, I feel good about Varex's prospects to grow despite a high degree of uncertainty in the upcoming year. Revenue in the fourth quarter increased 8% sequentially and 2% year-over-year. Revenue in Medical increased 9% sequentially, while Industrial revenue increased 6%. Non-GAAP gross margin in the quarter was 33% at the low end of our expectations, primarily due to high semiconductor procurement costs.

本季全球對我們產品的需求強勁，供應鏈的緩慢改善以及我們供應商多元化的努力使我們能夠將更多訂單轉化為銷售。當我們開始新的財政年度時，儘管來年存在高度不確定性，但我對 Varex 的成長前景感到樂觀。第四季營收季增 8%，年增 2%。醫療收入季增 9%，工業收入成長 6%。本季非 GAAP 毛利率為 33%，處於我們預期的低端，主要是由於半導體採購成本較高。

Adjusted EBITDA was $36 million, and non-GAAP EPS was $0.42. Our cash position, including marketable securities, was solid at $113 million at the end of the quarter, up $3 million sequentially.

調整後 EBITDA 為 3,600 萬美元，非 GAAP 每股收益為 0.42 美元。截至本季末，我們的現金部位（包括有價證券）穩定在 1.13 億美元，比上一季增加 300 萬美元。

Let me give you some high-level insights into the market environment based on qualitative assessment of demand for different modalities and applications during the quarter. Medical segment revenues increased 9% sequentially and were flat year-over-year.

讓我根據對本季度不同模式和應用程式需求的定性評估，為您提供一些對市場環境的高級見解。醫療部門營收季增 9%，較去年同期持平。

Global demand for CT tubes remained solid, but we saw some softness in Asia Pacific as some customers experienced delays with their other suppliers. Demand across our other medical modalities was solid, led by fluoroscopy, radiography, dental and mammography. Oncology shipments were soft in the quarter primarily due to timing of shipments to 1 customer. Revenues in our Industrial segment increased 5% sequentially and 9% year-over-year.

全球對 CT 管的需求仍然強勁，但我們看到亞太地區的需求有些疲軟，因為一些客戶與其他供應商的訂單出現了延誤。我們其他醫療模式的需求強勁，其中透視、放射線照相、牙科和乳房 X 光檢查為主導。本季腫瘤學出貨量疲軟，主要是由於向 1 位客戶的出貨時間表所致。我們工業部門的營收季增 5%，年增 9%。

During the quarter, we saw broad-based demand across various nondestructive inspection applications, including high energy sources for cargo screening at ports and borders. In the past, we have highlighted various products across our medical and industrial segments that we expect to drive future growth. Today, I wanted to take some time to reflect on the progress that we have made over the last year on these products as well as other fronts and our expectations moving forward. The global CT market remains a significant driver of sales for Varex.

在本季度，我們看到了各種無損檢測應用的廣泛需求，包括港口和邊境貨物篩檢的高能源。過去，我們重點介紹了醫療和工業領域的各種產品，我們預計這些產品將推動未來的成長。今天，我想花一些時間回顧我們去年在這些產品以及其他方面的進展以及我們未來的期望。全球 CT 市場仍然是 Varex 銷售的重要推動力。

This includes new system installations as well as demand for replacement tubes from our growing installed base. During fiscal 2022, we had several new design wins with our CT customers, including local OEMs in China. These new design wins represent future sales opportunities as well as 10 to 15 years of subsequent demand for replacement tubes. We continue to expect China to be a key driver of growth for both CT and Varex as our local OEM partners continue to gain market share.

這包括新系統的安裝以及我們不斷增長的安裝基礎對更換管的需求。 2022 財年，我們贏得了 CT 客戶（包括中國本土 OEM 廠商）的多項新設計。這些新設計的勝利代表了未來的銷售機會以及隨後 10 至 15 年更換管的需求。隨著我們的本地 OEM 合作夥伴繼續獲得市場份額，我們仍然預計中國將成為 CT 和 Varex 成長的主要驅動力。

Turning to nanotubes. To further expand our position in nanotubes, in September, we entered into a technology collaboration with Micro-X, a leader in carbon nanotube-based X-ray systems for medical and security markets. This includes an exclusive global license enabling Varex to use Micro-X' technology in the field of multi-beam X-ray tubes. Varex believes in the future importance of cold cathode X-ray sources and we're excited to invest in additional nanotube technology to diversify our product portfolio.

轉向奈米管。為了進一步擴大我們在奈米管領域的地位，9 月份，我們與 Micro-X 建立了技術合作關係，Micro-X 是醫療和安全市場碳奈米管 X 射線系統的領導者。其中包括全球獨家許可，使 Varex 能夠在多束 X 射線管領域使用 Micro-X 技術。 Varex 相信冷陰極 X 射線源未來的重要性，我們很高興投資額外的奈米管技術來使我們的產品組合多樣化。

Earlier this year, we highlighted our high-performance X-ray tubes used for cardiovascular applications. During the year, we continued to ship samples of our new liquid metal bearing based CT and cardiovascular tubes for evaluation by potential customers. Over the upcoming quarters, we expect to receive additional feedback on the products and move towards being included in their future system designs. These tubes offer a long-life, noise-free operation and increased throughput for certain applications. Moving to detectors.

今年早些時候，我們重點介紹了用於心血管應用的高性能 X 光管。年內，我們繼續運送基於液態金屬軸承的新型 CT 管和心血管管的樣品，以供潛在客戶評估。在接下來的幾個季度中，我們預計會收到有關產品的更多回饋，並致力於將其納入未來的系統設計中。這些管子可提供長壽命、無噪音的運行，並提高某些應用的吞吐量。轉向探測器。

We were happy to see that our Dynamic Detector platform called Azure continues to receive high interest from our customers. In fiscal 2022, a number of customers began to design Azure detectors into their systems and we continue to receive positive feedback. We expect to see further adoption of our Azure platform as our customers launch their product offerings. We have converted the majority of our radiographic customers to our Lumen detectors. This is a highly competitive radiographic detector platform targeted at the low end of the market where we have historically had lower market share. We will be showcasing our current Lumen detectors as well as a new detector for advanced radiographic applications at RSNA later this November.

我們很高興看到我們的動態偵測器平台 Azure 繼續受到客戶的高度關注。 2022 財年，許多客戶開始在他們的系統中設計 Azure 探測器，我們繼續收到正面的回饋。隨著我們的客戶推出他們的產品，我們期望看到我們的 Azure 平台進一步採用。我們已將大多數射線照相客戶轉而使用我們的流明探測器。這是一個競爭激烈的射線照相探測器平台，針對的是我們歷來市佔率較低的低端市場。我們將於今年 11 月稍後在 RSNA 上展示我們目前的 Lumen 探測器以及用於高級射線照相應用的新型探測器。

We also continue to make progress with our Photon Counting technology on both Medical and Industrial side. In Medical, our Photon Counting detectors are being used in various applications. Further, we're making progress with our CT customers and are working closely with them to firm up design specifications for integration into their systems. As we have noted in the past, we do not have an offering in the CT detector market space today, making this an entirely incremental market for Varex.

我們也繼續在醫療和工業方面的光子計數技術方面取得進展。在醫療領域，我們的光子計數探測器被用於各種應用。此外，我們正在與 CT 客戶取得進展，並與他們密切合作，以確定整合到他們的系統中的設計規格。正如我們過去所指出的，我們目前在 CT 探測器市場領域沒有產品，這使得這對 Varex 來說是一個完全增量的市場。

Finally, we have been working to establish a local presence in India. We took a similar approach in China where we have seen our revenue grow to nearly $140 million in fiscal 2022. We believe India and Southeast Asia region will be on a similar growth trajectory and this investment in India will establish a new local presence in the region. Later this month, along with many of our customers, we will be attending the Radiological Society of North America, RSNA, Conference in Chicago.

最後，我們一直致力於在印度建立當地業務。我們在中國採取了類似的方法，我們的營收在2022 財年增長到近1.4 億美元。我們相信印度和東南亞地區將處於類似的成長軌跡，在印度的這項投資將在該地區建立新的本地業務。本月晚些時候，我們將與許多客戶一起參加在芝加哥舉行的北美放射學會 (RSNA) 會議。

Varex will be highlighting its product portfolio, including some of the products we have talked about today. Turning to Industrial. We expect the cargo security market for ports and borders to continue to be strong end market for Varex Industrial. Our security business is experiencing growth as a result of increased demand worldwide for cargo screening systems and our partnership with established OEMs in this space. We expect to see continued growth here as we head into fiscal 2023, building on the success we saw this past year. Our industrial customers continued to praise the high frame rate imaging capability of Photon Counting detectors and as a result, we are seeing increased adoption across various nondestructive inspection applications, such as electronics, battery and food inspection.

Varex 將重點介紹其產品組合，包括我們今天討論的一些產品。轉向工業。我們預計港口和邊境的貨物安全市場將繼續成為 Varex Industrial 的強勁終端市場。由於全球範圍內對貨物檢查系統的需求不斷增加，以及我們與該領域成熟的原始設備製造商的合作關係，我們的安全業務正在經歷成長。我們預計，在進入 2023 財年時，我們將在去年的成功基礎上繼續成長。我們的工業客戶繼續稱讚光子計數探測器的高幀率成像能力，因此，我們看到在各種無損檢測應用中越來越多的採用，例如電子、電池和食品檢測。

These Photon Counting detectors enable faster inspection rates and better image quality through enhanced material discrimination compared to other technologies and thus enable factories to meet increased demand in these growth industries. Last quarter, we highlighted an exciting area within our industrial market. Specifically, I'm referring to the use of x-ray or e-beam technologies to sterilize consumer-facing products. This is not a new market outside of Varex, but one that we have historically had limited exposure to.

與其他技術相比，這些光子計數探測器透過增強的材料辨別能力實現更快的檢測速度和更好的圖像質量，從而使工廠能夠滿足這些成長行業不斷增長的需求。上季度，我們強調了工業市場中一個令人興奮的領域。具體來說，我指的是使用 X 光或電子束技術對面向消費者的產品進行消毒。這不是 Varex 以外的新市場，但我們歷來接觸的市場有限。

We expect irradiation to be a growing market in which our high-power X-ray sources can be used to irradiate food and other consumer-facing products. These solutions are in development and introduction stages, but we expect to have more details in fiscal 2023 as we receive feedback from our customers. At the recent American Society for Nondestructive Testing Conference, ASNT, held in Nashville during early November, our OEM systems integration partners indicated strong backlog and future demand for their inspection solutions in the aerospace, defense and automotive markets.

我們預計輻照市場將持續成長，我們的高功率 X 射線源可用於輻照食品和其他面向消費者的產品。這些解決方案正處於開發和推出階段，但我們預計在 2023 財年收到客戶的回饋後會獲得更多詳細資訊。最近，在 11 月初於納許維爾舉行的美國無損檢測協會 ASNT 會議上，我們的 OEM 系統整合合作夥伴表示，航空航太、國防和汽車市場對其檢測解決方案的積壓和未來需求強勁。

Our customers see value in our ability to integrate new technologies like Photon Counting detectors, supporting system components, image acquisition, workflow software and AI capabilities for automated inspection. We continue to be excited about the prospect of providing more integrated solutions to our industrial customers. We expect this new approach to be a key growth driver for Varex across several industrial verticals. As we move into a new fiscal year, we're happy with the progress that we have made with supply chain initiatives and look forward to our prospects in fiscal 2023 and beyond.

我們的客戶看到了我們整合光子計數探測器、支援系統組件、影像擷取、工作流程軟體和用於自動檢查的人工智慧功能等新技術的能力的價值。我們仍然對為工業客戶提供更多整合解決方案的前景感到興奮。我們預計這種新方法將成為 Varex 在多個工業垂直領域的關鍵成長動力。隨著我們進入新的財年，我們對供應鏈計畫所取得的進展感到滿意，並展望 2023 財年及以後的前景。

With that, let me hand over the call to Sam.

接下來，讓我把電話轉給 Sam。

Thanks, Sunny, and hello, everyone. As a reminder, unless otherwise indicated, I will provide sequential comparison of our results for the fourth quarter of fiscal year 2022 with those of our third quarter of fiscal 2022.

謝謝，Sunny，大家好。提醒一下，除非另有說明，我將提供 2022 財年第四季與 2022 財年第三季業績的連續比較。

We are pleased with our ability to grow both revenues and earnings this year despite supply chain challenges that constrained our sales and inflationary pressure from raw materials and logistics that compressed our gross margins. Revenues for the year grew 5% year-over-year to $859 million and non-GAAP EPS grew 9% to $1.43 for the year.

儘管供應鏈挑戰限制了我們的銷售，原材料和物流帶來的通膨壓力壓縮了我們的毛利率，但我們對今年收入和利潤的成長能力感到滿意。全年營收年增 5% 至 8.59 億美元，全年非 GAAP 每股收益成長 9% 至 1.43 美元。

Adjusted EBITDA increased 5% year-over-year to $140 million and we finished the year with cash and securities of $113 million. Turning now to the fourth quarter. Our supply chain initiatives enabled us to ship more in the quarter, leading to sales of $231 million, above the midpoint of guidance. Non-GAAP gross margin was 33%. Non-GAAP EPS was near the top of our guidance at $0.42.

調整後 EBITDA 年成長 5%，達到 1.4 億美元，年底我們的現金和證券價值為 1.13 億美元。現在轉向第四季。我們的供應鏈計畫使我們能夠在本季實現更多出貨量，銷售額達到 2.31 億美元，高於指導中位數。非 GAAP 毛利率為 33%。非 GAAP 每股盈餘接近我們指引的最高點，為 0.42 美元。

Fourth quarter revenues increased 8% compared to the third quarter. Medical revenues were $181 million and Industrial revenues were $50 million. Sequentially, Medical sales increased 9% and Industrial sales increased 6%. Medical revenues were 78% and Industrial revenues were 22% of our total revenues for the quarter.

第四季營收較第三季成長8%。醫療收入為 1.81 億美元，工業收入為 5,000 萬美元。隨後，醫療銷售額成長了 9%，工業銷售額成長了 6%。醫療收入佔本季總收入的 78%，工業收入佔 22%。

Looking at revenue by region. Americas increased 26% sequentially, while EMEA increased 5% and APAC declined 4%. The increase in the Americas was primarily driven by sales into our radiographic and fluoro markets, while the decline in APAC was primarily the result of some softness in CT as customers saw delays with their other suppliers. Sales to China finished the year strong at approximately $140 million in revenue or 16% of total Varex sales.

按地區查看收入。美洲地區較上季成長 26%，歐洲、中東和非洲地區成長 5%，亞太地區下降 4%。美洲的成長主要是由我們的射線照相和螢光市場的銷售推動的，而亞太地區的下降主要是由於客戶看到其他供應商的延誤而造成 CT 的一些疲軟的結果。全年對中國的銷售強勁，收入約 1.4 億美元，佔 Varex 總銷售額的 16%。

Let me now cover our results on a GAAP basis. Fourth quarter gross margin was 32%, down 200 basis points from the previous quarter. Operating expenses held steady at $50 million and operating income was $25 million, up $2 million sequentially. Net earnings were $13 million and GAAP EPS was $0.32 based on fully diluted 41 million shares.

現在讓我介紹一下我們按照公認會計準則計算的結果。第四季毛利率為32%，較上季下降200個基點。營運支出穩定在 5,000 萬美元，營運收入為 2,500 萬美元，比上一季增加 200 萬美元。根據完全稀釋的 4,100 萬股計算，淨利潤為 1,300 萬美元，GAAP 每股收益為 0.32 美元。

Moving on to non-GAAP results for the quarter. Gross margin of 33% was down 200 basis points from the previous quarter and at the low end of our guidance. There were 2 primary drivers of the lower gross margin. First, higher semiconductor-related material costs, which we expect to continue through fiscal 2023. And second, our industrial business mix was somewhat unfavorable.

接下來是本季非公認的會計準則業績。毛利率為 33%，比上一季下降 200 個基點，處於我們指引值的低端。毛利率較低有兩個主要驅動因素。首先，半導體相關材料成本上升，我們預期這種情況將持續到 2023 財年。其次，我們的工業業務組合有些不利。

R&D spending in the fourth quarter was $20 million, flat compared to the prior quarter and represented 9% of revenue. SG&A was $27 million, also flat compared to the prior quarter and represented 12% of revenue. As a result, operating expenses were $47 million, in line with the prior quarter and represented 20% of revenue. Operating income was $29 million and operating margin was 13% of revenue, similar to the previous quarter.

第四季研發支出為 2,000 萬美元，與上一季持平，佔營收的 9%。 SG&A 為 2,700 萬美元，與上一季持平，佔營收的 12%。結果，營運費用為 4,700 萬美元，與上一季持平，佔營收的 20%。營業收入為 2,900 萬美元，營業利潤率為收入的 13%，與上一季相似。

Tax expense in the fourth quarter was $4 million or 17% of pretax income compared to $6 million or 29% in the previous quarter. The lower tax rate in the fourth quarter was primarily the result of favorable U.S. tax items and international valuation allowances. Net earnings were $17 million or $0.42 per diluted share, up $0.05 from the third quarter. Average diluted shares for the quarter on a non-GAAP basis were $40 million. Please note that ASU 2020-06 related to the accounting for convertible instruments became effective for us from Q1 of fiscal 2023 onwards.

第四季的稅務支出為 400 萬美元，佔稅前收入的 17%，而上一季為 600 萬美元，佔稅前收入的 29%。第四季稅率較低主要是美國稅收優惠和國際估價津貼的結果。淨利潤為 1700 萬美元，即稀釋後每股收益 0.42 美元，比第三季增加 0.05 美元。以非公認會計準則計算，本季平均攤薄股本為 4,000 萬美元。請注意，與可轉換工具會計相關的 ASU 2020-06 自 2023 財年第一季起對我們生效。

Under this accounting standard, the EPS calculation adds back the after-tax convertible loan interest expense to net income and add shares underlying our convertible notes and associated bond hedge to the diluted shares outstanding. For Varex on an annual basis, we add back approximately $6 million of after-tax interest expense to net income and approximately 8 million shares to otherwise outstanding diluted shares. For an illustrative view on potential scenarios, please see the appendix of our Q4 earnings slide deck. Now turning to the balance sheet. Accounts receivable increased by $16 million and DSO increased 1 day to 68 days in the quarter, primarily due to higher sales in the second half of the quarter.

根據該會計準則，每股盈餘計算將稅後可轉換貸款利息費用加回淨利潤，並將可轉換票據和相關債券對沖的基礎股票添加到稀釋後的已發行股票中。對於 Varex，我們每年將約 600 萬美元的稅後利息費用加回淨利潤中，並將約 800 萬股加回其他已發行稀釋股份中。有關潛在情境的說明性視圖，請參閱我們第四季度收益投影片的附錄。現在轉向資產負債表。本季應收帳款增加 1,600 萬美元，DSO 增加 1 天至 68 天，主要是由於本季下半年銷售額增加。

Inventory increased modestly by $3 million as we target to improve inventory turns while balancing supply chain risk. As a result, days of inventory decreased to 176 days. Accounts payable decreased by $5 million. Now moving to debt and cash flow information. Cash flow from operations was $17 million in the fourth quarter, and we ended the quarter with cash and securities of $113 million, an increase of $3 million from the prior quarter. Gross debt outstanding at the end of the quarter was $450 million and debt net of $113 million of cash and securities was $337 million.

由於我們的目標是在平衡供應鏈風險的同時提高庫存週轉率，因此庫存小幅增加了 300 萬美元。庫存天數因此減少至 176 天。應付帳款減少 500 萬美元。現在轉向債務和現金流資訊。第四季營運現金流為 1,700 萬美元，本季末我們的現金和證券為 1.13 億美元，比上一季增加了 300 萬美元。本季末未償債務總額為 4.5 億美元，扣除 1.13 億美元現金及證券後的債務淨額為 3.37 億美元。

Adjusted EBITDA for the quarter was $36 million and adjusted EBITDA margin was 16% of sales. Our net debt leverage ratio was 2.4x at quarter end. Now moving to outlook for Q1 of '23. We see demand patterns running higher than pre-COVID levels but lower than what we experienced 6 months ago. Given our strong backlog and supply chain initiatives, we expect to grow sales in fiscal 2023 over '22. However, we expect inflation driven higher material and labor costs to keep our gross margin around the 33% level.

該季度調整後 EBITDA 為 3,600 萬美元，調整後 EBITDA 利潤率為銷售額的 16%。截至季末，我們的淨負債槓桿率為 2.4 倍。現在轉向 23 年第一季的展望。我們看到需求模式高於新冠疫情前的水平，但低於 6 個月前的水平。鑑於我們強大的積壓和供應鏈計劃，我們預計 2023 財年的銷售額將比 2022 財年有所成長。然而，我們預期通膨推動材料和勞動成本上升將使我們的毛利率維持在 33% 左右的水平。

Moving to guidance for the first quarter of fiscal '23. As a reminder, the first fiscal quarter is generally a seasonally low quarter for shipments for us. With that in mind, our guidance for the first quarter is as follows: Revenues are expected between $195 million and $215 million. At the midpoint of $205 million, this is up 3% from Q1 of fiscal '22; and non-GAAP earnings per diluted share are expected between $0.10 and $0.30. Our expectations are based on non-GAAP gross margin of about 33%, non-GAAP operating expenses in the range of $46 million to $47 million, tax rate of about 28% to 30% for Q1 and fiscal 2023, non-GAAP diluted share count of about 41 million shares.

轉向 23 財年第一季的指引。提醒一下，第一財季對我們來說通常是出貨量的季節性低季。考慮到這一點，我們對第一季的指導如下：預計營收在 1.95 億美元至 2.15 億美元之間。以 2.05 億美元的中位數計算，這比 22 財年第一季成長了 3%；非 GAAP 每股攤薄收益預計在 0.10 美元至 0.30 美元之間。我們的預期基於約 33% 的非 GAAP 毛利率、4,600 萬至 4,700 萬美元的非 GAAP 營運費用、2023 年第一季和 2023 財年的稅率約 28% 至 30%、非 GAAP 攤薄份額總股數約4100萬股。

Please see Slide 22 with the title illustrative impact of ASU 2020-06 in our earnings presentation for more details on the various scenarios for non-GAAP diluted shares under this accounting standard.

請參閱我們的收益簡報中標題為 ASU 2020-06 的說明性影響的投影片 22，以了解有關此會計準則下非 GAAP 稀釋股票的各種情境的更多詳細資訊。

With that, we will now open the call for your questions.

現在，我們將開始電話詢問您的問題。

(Operator Instructions) Our first question today is coming from Larry Solow from CJS.

（操作員說明）今天我們的第一個問題來自 CJS 的 Larry Solow。

Great. Just to clarify, just on the guidance real fast for the -- I know you only give 1 quarter guidance in light of the new convertible tax flow accounting rules. It's essentially -- for Q1, you're still assuming the 41 million shares. So it's essentially only the lack of add-back of that interest expense, right, that noncash interest expense. Is that correct, just for Q1?

偉大的。只是為了澄清，只是關於真正快速的指導——我知道根據新的可轉換稅收流量會計規則，您只給出了 1 個季度的指導。本質上來說，對於第一季度，你仍然假設有 4,100 萬股。因此，本質上只是缺乏利息費用的加回，對吧，非現金利息費用。僅針對 Q1，這是正確的嗎？

Yes. So Larry, this is Sam. Good to talk to you. The way this accounting standard works, it makes EPS calculation a little bit more complicated. But what happens on a non-GAAP basis, if you're moderately saying, say, less than $0.21, $0.22, you're still using 41 million shares for the diluted share count. But if you are looking at more than $9 million in non-GAAP net income or say about more than $0.21, $0.22 then you'll add back $1.4 million of interest expense, which is after tax interest expense to the numerator and then add 8 million shares to the denominator. So essentially, beyond $0.21, $0.22 of non-GAAP diluted EPS, you are mentally assuming as if the convertible has converted. So you no longer have to pay the interest expense. And then the share count goes up by $8 million. So that's the way to think about it. I hope that clears for you or...

是的。拉里，這是山姆。很高興和你說話。此會計準則的運作方式使每股盈餘的計算變得更加複雜。但在非 GAAP 基礎上會發生什麼，如果你適度地說，比方說，低於 0.21 美元、0.22 美元，你仍然使用 4100 萬股作為稀釋後的股票數量。但是，如果您查看的非GAAP 淨利潤超過900 萬美元，或者說超過0.21 美元、0.22 美元，那麼您將加回140 萬美元的利息費用，這是分子的稅後利息費用，然後加上800 萬美元股數除以分母。因此，本質上，除了 0.21 美元、0.22 美元的非 GAAP 稀釋每股收益之外，您在心裡假設可轉換債券已轉換。這樣您就不再需要支付利息費用。然後股票數量增加了 800 萬美元。這就是思考這個問題的方式。我希望你能明白這一點，或者…

Yes. So -- no, it does, I guess. And I looked at some of your charts, I'm just trying to simplify it because I don't get how it kind of skews up. So your guidance is kind of then -- it's kind of taking in a range of those scenarios.

是的。所以——不，我猜是這樣。我看了你們的一些圖表，我只是想簡化它，因為我不明白它是如何傾斜的。所以你的指導是一種考慮了一系列這些場景的指導。

Yes. So our guidance is $0.10 to $0.30 as we just guided. So towards the higher end of that guidance between, say, $0.22 and $0.30, it would go towards the scenario where we add back the interest expense and add the dilutive shares and below $0.21 $0.22, we are not.

是的。因此，我們的指導價為 0.10 美元至 0.30 美元，正如我們剛剛指導的那樣。因此，對於該指導的較高端，例如 0.22 美元和 0.30 美元之間，我們會加回利息費用並添加稀釋性股票，而低於 0.21 美元和 0.22 美元則不會。

So like in theory, hypothetically, if you just on an operating basis, reach the high end of your operating profit, right, which would, in theory, put you at the high end of your operating EPS, assuming nothing else changes, you're actually impacting yourself on a quarter-to-quarter basis, that's like an $0.08 sequential difference, right? Because you're adding back the $0.03 of interest expense and like $0.05, $0.06 of -- you're adding -- your share count is increasing 20%, right? So that's simple math. That's on $0.30, that's $0.06, right? And then...

因此，就像理論上一樣，假設，如果您只是在運營基礎上達到運營利潤的高端，對吧，理論上，這將使您處於運營每股收益的高端，假設沒有其他變化，那麼您'實際上，每季都會對自己產生影響，這相當於0.08 美元的環比差異，對吧？因為你要加回 0.03 美元的利息費用，例如 0.05 美元、0.06 美元——你要加上——你的股票數量增加了 20%，對吧？這就是簡單的數學。也就是 0.30 美元，也就是 0.06 美元，對嗎？進而...

Yes, Larry, on an annual basis...

是的，拉里，每年......

I just want to make it simple. These (inaudible), you can look at -- they don't do anything. They're just -- I know you put them up there, but there's so many numbers. I'm just trying to make it simple. So on a high-end scenario, your guidance could have been $0.38, isn't that right, $0.39?

我只是想讓事情變得簡單。這些（聽不清楚），你可以看看——它們沒有做任何事。它們只是——我知道你把它們放在那裡，但數字太多了。我只是想讓事情變得簡單。因此，在高端場景中，您的指導價可能是 0.38 美元，對吧，0.39 美元？

That's a little bit high, Larry -- yes, that's a little bit high, Larry. This guidance...

這有點高，拉里——是的，這有點高，拉里。該指導...

But close to that, right? Directionally, I feel like that's right, right? I mean -- or let's ask it this way. If you had the impact in Q4 of this 8 million shares and you couldn't add back the interest expense, you would have done $0.50 -- you would have done $0.34, correct? $0.33 or [$0.32]...

但接近那個，對吧？從方向上來說，我覺得是這樣的，對吧？我的意思是——或者讓我們這樣問。如果你在第四季度受到這 800 萬股的影響，而且你無法加回利息費用，那麼你會賺 0.50 美元 - 你會賺 0.34 美元，對嗎？ $0.33 或 [$0.32]...

No, the impact is about $0.04 a quarter, Larry, because the numerator is a positive thing and the denominator is a negative thing that...

不，拉里，每季的影響約為 0.04 美元，因為分子是正數，分母是負數…

Okay. So you're taking away the -- you're taking -- yes.

好的。所以你正在拿走——你正在拿走——是的。

Yes, so annualized impact is $0.12, $0.13, $0.14 in that range. So for a given quarter, it's about $0.03 to $0.04.

是的，所以該範圍內的年化影響為 0.12 美元、0.13 美元、0.14 美元。因此，對於給定的季度，約為 0.03 至 0.04 美元。

Okay. Okay, I got you. Okay. That's fair. Understood. Okay. And then just a question for Sunny, just switching gears. Everything sounds pretty good. Obviously, you have some supply chain, more macro issues and some higher semi-cap semiconductor costs and stuff. But just in general, it sounds like things are pretty good. I realize that the macro headwinds, in general, the economy is not great, but just trying to see specifically for you, what else kind of concerns you? Is it just macro -- these macro supply issues that are maybe not impacting you, but your customers and how hospital budget spending look, I know I think there was some concern a few weeks ago, I think somebody, Omnicell, maybe reported and they talked about a capital -- hospital budgets are not looking as good as maybe some people thought.

好的。好的，我找到你了。好的。這還算公平。明白了。好的。然後我想問 Sunny 一個問題，換個話題。一切聽起來都不錯。顯然，你有一些供應鏈、更多宏觀問題和一些更高的半電容半導體成本等。但總的來說，聽起來一切都還不錯。我意識到宏觀逆風，總體來說，經濟不是很大，但只是想專門為您看看，您還有什麼擔憂？這只是宏觀問題嗎——這些宏觀供應問題可能不會影響你，但你的客戶以及醫院預算支出的情況，我知道我認為幾週前有人擔心，我認為有人，Omnicell，可能報告了他們談到資本－醫院預算看起來並不像有些人想像的那麼好。

So can you just give us sort of a broad brush on -- you mentioned just some -- a tough environment, and I get the macro is tough. But trying to figure out (inaudible) specifically what kind of concerns you?

那麼，您能否向我們大致介紹一下——您只提到了一些——艱難的環境，我知道宏觀環境很艱難。但試著弄清楚（聽不清楚）您具體關心哪種問題？

Yes. So Larry, our customers had very strong bookings in both our fiscal '21 and fiscal '22. So they all had a very strong year, and they're sitting on quite a bit of orders that they've taken that are in their backlog. So as you know, for us, then that represents the call-offs that we would get to the extent that they have deliveries in this year. So as I look forward and just looking at where we are from a supply chain perspective, I feel good about that. We've made quite a bit of progress with our supply chain initiatives. You might recall, we jumped on them early. We got going really fast. We qualified a lot of suppliers. So I feel good about our ability and to progressively have a good year going forward. I think the risk for me is sitting here, not quite fully understanding the situation that our customers might be in with their supply chains and whether they'd be able to get the products out as we would want them to. So that's the risk that we're looking at, and that's the unknown here, to be fair.

是的。拉里，我們的客戶在 21 財年和 22 財年的預訂量都非常強勁。因此，他們都度過了非常強勁的一年，並且他們已經接到了相當多的積壓訂單。正如你所知，對我們來說，這代表著我們今年的交付量將被取消。因此，當我展望未來並從供應鏈的角度審視我們所處的位置時，我對此感覺很好。我們的供應鏈計劃已經取得了相當大的進展。你可能還記得，我們​​很早就抓住了他們。我們進展得很快。我們對許多供應商進行了資格認證。因此，我對我們的能力感到滿意，並將逐步度過美好的一年。我認為我面臨的風險是坐在這裡，沒有完全了解我們的客戶在供應鏈中可能面臨的情況，以及他們是否能夠按照我們希望的那樣將產品運送出去。這就是我們正在考慮的風險，公平地說，這是未知的。

Okay. So your concerns on the revenue side, whether it be the Medical side or even maybe Industrial, from customers, it sounds like Industrial, up until now is doing great for you guys or a lot better than sequentially over the last few quarters. Does a slow economy necessarily you would think that would curb spending a little bit? Does that concern you?

好的。因此，您對收入方面的擔憂，無論是醫療方面，還是來自客戶的工業方面，聽起來像是工業方面，到目前為止對您來說做得很好，或者比過去幾個季度的連續表現要好得多。您是否認為經濟放緩一定會抑制支出？這與你有關嗎？

Yes, it does. But you used the example of Omnicell. I believe Omnicell makes pharmacy cabinets and products like that. They're signed directly to end users and then their situation is different from ours in the sense that our customers have longer shipment cycles. And so given the volume of business that's already in their backlog, I feel like we're in a different place. Our uncertainty is if the economy starts to slow down and orders intake by our customers softens then that impact is likely to be at the tail end of the year or next year. And so we don't quite know how to model that in this year. This year, we're -- we feel good about at least the current position. Q1, as Sam mentioned, is -- Q1 tends to be historically a soft quarter for us because of the fiscal year-end of our customers, they've already bought a lot of the things that they need for this quarter. So Q1 is cyclically -- Q1 is a little soft, but then we improved as the year goes by. And you would have seen that from last year as well. We had a soft Q1 and then progressively it got better during the year.

是的，它確實。但您使用了 Omnicell 的範例。我相信 Omnicell 生產藥局櫃和類似產品。他們直接與最終用戶簽約，他們的情況與我們不同，因為我們的客戶有更長的發貨週期。因此，考慮到他們已經積壓的業務量，我覺得我們處於不同的境地。我們的不確定性是，如果經濟開始放緩並且客戶的訂單量減少，那麼這種影響可能會在今年年底或明年出現。所以我們不太知道今年該如何建模。今年，我們至少對目前的狀況感覺良好。正如 Sam 所提到的那樣，第一季對我們來說歷來是一個疲軟的季度，因為我們的客戶的財年結束了，他們已經購買了本季度所需的很多東西。所以第一季是週期性的——第一季有點軟，但隨著時間的推移我們有所改善。從去年起你也會看到這一點。我們的第一季表現疲軟，但這一年情況逐漸好轉。

And does the CT concern -- and that's obviously one of your bigger growth drivers. It sounds like that's more of a timing issue, but also, I guess, a supply chain issue. Do you assume in your guidance that you make up most of that through the year? Or are you kind of holding that back a little bit because of continuing supply chain issues?

CT 是否關心——這顯然是您更大的成長動力之一。聽起來這更像是一個時間問題，但我猜也是一個供應鏈問題。您是否在您的指導中假設您在這一年中完成了大部分工作？或者由於持續的供應鏈問題，您會稍微推遲一下？

So we're expecting to make that up during the year. But the thing you asked what else could be on our minds from a risk perspective, as the -- in this type of an environment, our mix might move to more of the lower-end CT products. As people look at what it is that they're going to buy during the year in a tough recessionary environment that tends to happen. So we're not quite sure exactly what the mix will look like in the second half of the year for CT.

因此，我們預計將在今年內彌補這一不足。但你問的問題是，從風險的角度來看，我們可能還會想到什麼，因為在這種環境下，我們的產品組合可能會轉向更多的低階 CT 產品。當人們考慮在今年可能發生的嚴峻的經濟衰退環境中他們將購買什麼。因此，我們不太確定今年下半年 CT 的組合會是什麼樣子。

Your next question is coming from Suraj Kalia from Oppenheimer.

您的下一個問題來自奧本海默的蘇拉吉·卡利亞（Suraj Kalia）。

Sunny, Sam, Chris, can u hear me all right?

桑尼、山姆、克里斯，你們聽得到我說話嗎？

Yes, we do.

是的，我們願意。

Perfect. Sunny, 1 question for you, 2 for Sam. Let me start out with the partnership with Micro-X Sunny. Maybe you could talk to us about the complementarity that Micro-X, their carbon nanotube offers with your platform, especially the multibeam. What are the implications? And what gap are you trying to fill with this partnership?

完美的。 Sunny，問你 1 個問題，問 Sam 2 個問題。讓我先從與 Micro-X Sunny 的合作開始。也許您可以與我們談談 Micro-X（他們的碳奈米管）與您的平台的互補性，尤其是多光束。有什麼影響？您想透過這種夥伴關係來填補哪些空白？

Yes. Suraj, so first of all, the -- our technology work has made good progress. As you know that, we've talked a lot about that. And we are -- we feel fairly good and very -- believe in the future prospects of cold cathode technology. So our conviction there remains strong, and I wanted to make sure that, that comes across pretty clearly. Now these are new technologies, as you know, and there are many different kinds of cold cathode technologies, and there are different ways to make these emitters. And so what we wanted to do was to make sure that we were, one -- there were 2 things here.

是的。 Suraj，首先，我們的技術工作取得了良好進展。如您所知，我們已經就此討論了很多。我們 - 我們感覺相當好並且非常 - 相信冷陰極技術的未來前景。因此，我們的信念仍然堅定，我想確保這一點能夠非常清楚地傳達出來。如您所知，現在這些都是新技術，並且有許多不同種類的冷陰極技術，並且有不同的方法來製造這些發射器。所以我們想做的就是確保我們，一——這裡有兩件事。

One, we wanted to make sure that we had access to a couple of different emitter technologies. One of them is through our joint venture VC. And the second one, we wanted to make sure that we had it ourselves as well. So this was in addition to our joint venture, having the emitter technology and we making multi-beam tubes with that technology, we wanted to, also for the long term, make sure that we have access to a slightly different type of carbon nanotube-based emitter technology that we could also continue to evolve on our own. So this was mostly a diversification play for us and where we get to own the technology ourselves in addition to through our JV partner.

第一，我們希望確保我們能夠使用幾種不同的發射器技術。其中之一是透過我們的合資企業 VC 實現的。第二個，我們想確保我們自己也擁有它。因此，這是我們合資企業的補充，擁有發射器技術，並且我們用該技術製造多束管，從長遠來看，我們希望確保我們能夠獲得稍微不同類型的碳奈米管-基於發射器技術，我們也可以繼續自行發展。因此，這對我們來說主要是一種多元化經營，除了透過我們的合資夥伴之外，我們還可以自己擁有該技術。

Okay. Got it. And Sam, I'll throw a couple of things your way and I'll post both of these together, if I could. So Sam, gross margins, right, and I'm specifically referring to GAAP gross margins, they seem to be sort of stuck in a 32-ish , 34-ish range. Are we in a position to sort of compartmentalize? Okay, here is the impact of supply chain, these many bps, FX, these many bps, inflationary costs or product mix. Just help us -- walk us through -- what is the more acute impact you're seeing? And any efforts to mitigate that? And Sam, if I could also throw it in there, maybe if you could just walk us through how cargo costs are currently shaping up, which are presumably embedded in your OpEx? Any color would be great.

好的。知道了。山姆，我會按照你的方式扔一些東西，如果可以的話，我會把它們一起發布。 Sam，毛利率，對吧，我特別指的是 GAAP 毛利率，它們似乎陷入了 32 左右、34 左右的範圍。我們是否能夠進行某種劃分？好吧，這是供應鏈、這麼多基點、外匯、這麼多基點、通膨成本或產品組合的影響。請幫助我們——引導我們度過難關——您看到的更嚴重的影響是什麼？有什麼措施可以緩解這種情況嗎？ Sam，如果我也可以把它放在那裡，也許你可以向我們介紹目前的貨運成本是如何形成的，這可能已經包含在你的營運支出中？任何顏色都會很棒。

Yes. Thanks, Suraj. So yes, in terms of specifically answering on the -- from the GAAP gross margin perspective, and actually, these impacts pretty much apply to non-GAAP gross margin results as well. So it's -- the effect is the same for GAAP and non-GAAP. So I would say compared to pre-COVID time, our freight is running high. The freight costs -- higher freight costs are impacting our gross margin by 100, even 150 basis points. In terms of costs, they are up quite a bit. Cost is up 7% to 10%. If you look at, say, 3 or 4 quarters ago cost versus where we are now. So essentially, we are looking at 200 to 300 basis points cost increases, which is impacting the gross margin. So that gets you to, say, 35, 36 percentage gross margin if these were not there.

是的。謝謝，蘇拉吉。所以，是的，從 GAAP 毛利率的角度具體回答，實際上，這些影響也幾乎適用於非 GAAP 毛利率結果。因此，對於 GAAP 和非 GAAP 的影響是相同的。所以我想說，與新冠疫情之前相比，我們的貨運量很高。貨運成本－更高的貨運成本正在影響我們的毛利率 100，甚至 150 個基點。就成本而言，它們上漲了很多。成本上漲7%至10%。如果你看三、四個季度前的成本與現在的成本。因此，本質上，我們預計成本會增加 200 到 300 個基點，這會影響毛利率。如果沒有這些的話，那麼毛利率可以達到 35%、36%。

But then we've also been increasing prices, and we have been slowly realizing increased prices to offset this. But so far, because the price improvement efforts have been slow, and we've not been fully able to mitigate the cost increases or the freight increase through price realization. So slowly, we are trying to defray that and we have been somewhat successful in that, but not fully. So from a price perspective, we are looking at 100 to 200 basis points improvement back towards the higher end of the gross margin. So that is how the bridge is working in terms of freight and materials cost and then plowing it back through price increases.

但後來我們也一直在提高價格，我們一直在慢慢意識到提高價格來抵銷這一點。但到目前為止，由於價格改善緩慢，我們還沒有完全能夠透過價格變現來緩解成本上漲或運費上漲。所以慢慢地，我們正在努力支付這筆費用，我們在這方面取得了一些成功，但並不完全。因此，從價格角度來看，我們預計毛利率將提高 100 到 200 個基點，回到較高水準。這就是這座橋在運費和材料成本方面的運作方式，然後透過價格上漲將其收回。

So that's that. And then your second question related to freight, as I said, freight is impacting 100 to 150 basis points. Currently, it has been that way for last 3, 6, 9 months, I would say. Lately, we are beginning to see some improvement in freight. But given the current supply chain situation in many areas, we are still very tight in terms of -- I would not say we are hand to mouth anymore, but things are still tight. And so we are leveraging or utilizing higher cost-oriented freight modes. So freight probably will take another quarter or maybe 1 to 2 quarters for us to normalize in terms of having its effect begin to show up on gross margin.

就是這樣。然後你的第二個問題與運費有關，正如我所說，運費影響了 100 到 150 個基點。我想說，目前，過去 3、6、9 個月都是這樣。最近，我們開始看到貨運有所改善。但考慮到目前許多地區的供應鏈狀況，我們仍然非常緊張——我不會說我們已經勉強糊口，但情況仍然很緊張。因此，我們正在利用或利用更高成本導向的貨運模式。因此，貨運可能還需要一個季度或一到兩個季度才能使我們正常化，其影響開始顯現到毛利率上。

(Operator Instructions) Our next question today is coming from Anthony Petrone from Mizuho Group.

（操作員說明）今天我們的下一個問題來自瑞穗集團的 Anthony Petrone。

Congrats on good execution here in the quarter. I'll start with a few demand questions and Sunny, Sam, you have CT as sort of listed as neutral demand in the quarter, just the backdrop in the environment. I mean how much of that geographically is linked to the United States, Europe, how much of that is linked to China? And then when you sort of look at dental, that's actually more of a tailwind in 3Q. We're hearing some mixed data points just on the backdrop of dental volumes still being impacted from labor shortages from some of the other publicly traded companies that have solutions in dental. So do you see any risk to dental slowing down in the next couple of quarters? And I'll have a few follow-ups.

恭喜本季的良好執行力。我將從幾個需求問題開始，Sunny、Sam，您將 CT 列為本季的中性需求，這只是環境的背景。我的意思是，其中有多少地理上與美國、歐洲有關，有多少是與中國有關？然後，當你看看牙科時，實際上這在第三季度更像是一個順風車。我們聽到一些混合的數據點，背景是牙科銷售仍然受到其他一些擁有牙科解決方案的上市公司勞動力短缺的影響。那麼，您認為未來幾季牙科產業發展放緩是否有任何風險？我將進行一些後續行動。

Thanks, Anthony, and good to hear your voice back, and welcome back on our call. So yes, what I would say in terms of CT, CT demand is still high. The graphic color that we provide is really compared how we see the CT business this quarter versus the last quarter. CT has been a growing business for us for quite a few number of quarters here. And so what we -- it's still from a historical perspective, this line is still running towards the higher end. It's just that it is not as high as what it was last quarter or the prior quarter. So we feel good about the CT business. As we've talked about, we've been -- we've qualified a number of new OEMs in China. And so our demand for CT from China, Japan, et cetera, is quite strong. So overall, CT is good, but compared to the prior quarter, it's a little bit down.

謝謝，安東尼，很高興聽到你的聲音，歡迎回到我們的電話。所以，是的，就 CT 而言，我想說的是，CT 需求仍然很高。我們提供的圖形顏色實際上是對本季與上季 CT 業務的看法進行了比較。連續幾個季度以來，CT 業務一直在不斷成長。所以我們——仍然從歷史的角度來看，這條線仍然朝著高端運行。只是沒有上季或上季那麼高。所以我們對CT業務感覺良好。正如我們所說，我們已經對中國的一些新的原始設備製造商進行了認證。所以中國、日本等國對CT的需求是相當強勁的。所以總體來說，CT 不錯，但與上一季相比，略有下降。

And as we look forward into the remaining quarters of the year, as Sunny was mentioning, we need to think about in terms of the product mix, whether any recessionary pressure forces our customers to ship down on the product mix in terms of saving dollars, yet the quantities remain good. So we just need to watch out for that going forward in CT. But overall, we feel pretty good about CT. And your next question comes on dental. Maybe, Sunny, you want to add on dental?

正如桑尼所提到的，當我們展望今年剩餘的季度時，我們需要考慮產品組合，是否有任何衰退壓力迫使我們的客戶為了節省美元而減少產品組合，但數量仍然不錯。所以我們只需要關注 CT 的未來發展。但總的來說，我們對 CT 的感覺還不錯。你的下一個問題是關於牙科的。也許，桑尼，你想增加牙科？

Yes. I wasn't -- Anthony, it wasn't clear to me what you meant by labor pressures. Were you saying that in your other calls or you've been hearing that...

是的。我不是──安東尼，我不清楚你所說的勞動壓力是什麼意思。您是在其他電話中這麼說還是您已經聽過…

So due to labor pressure -- yes, due to continued labor pressures at the side of (inaudible).

因此，由於勞動力壓力——是的，由於（聽不清楚）方面持續存在的勞動力壓力。

For the clinic?

為了診所？

Correct, some of the dental companies that have exposure to procedures, they talked about a slowdown through this current quarter. I'm wondering if that translates back to...

是的，一些從事手術的牙科公司，他們談到了本季的放緩。我想知道這是否可以翻譯回...

See, our -- we have strong -- we have good market share in dental. We're fairly diversified across many geographies. So we haven't felt that yet. I mean we're not seeing any specific softness in any way that I can call out specifically. Europe continues to be strong for us in dental. So I really don't have any way of verifying or validating what you're saying? There's...

看，我們的——我們強大的——我們在牙科領域擁有良好的市場份額。我們在許多地區都相當多元化。所以我們還沒有感覺到。我的意思是，我們沒有看到任何我可以特別指出的具體軟弱之處。歐洲在牙科領域對我們來說仍然很強大。所以我真的沒有任何方法來驗證或驗證你所說的話嗎？有...

No worries. No worries. A couple of follow-ups would be, one, on currency. The dollar here is obviously strong year-over-year elevated now for almost 6 months. It hasn't appeared to have any impact in demand on Varex Solutions. Just wondering what the latest is on the currency discussion as we're just dealing with an elevated dollar here?

不用擔心。不用擔心。一些後續行動將涉及貨幣。近六個月來，美元明顯年比走強。它似乎沒有對 Varex Solutions 的需求產生任何影響。只是想知道貨幣討論的最新進展是什麼，因為我們正在處理美元升值的問題？

Yes. So let me provide some color on that, Anthony. Our business on an annual basis, about 25% is in foreign currencies as sales comes in and 75% is in U.S. dollars. And so we've looked at it and the top line impact compared to how we started this last fiscal year '22. It's been about $18 million to $20 million. Obviously, dollar has strengthened across every major currency, whether it's yuan, Japanese yen or the euro. So that impact on the top line to us has been about $20 million. But at the same time, from a margin and the bottom line perspective, as you know, we do have operations in Europe in terms of our R&D facilities as well as production facilities, and we also do have production in China.

是的。安東尼，讓我對此提供一些說明。在我們每年的業務中，隨著銷售額的增加，大約 25% 是外幣，75% 是美元。因此，我們研究了它以及與上一財年 22 財年開始時的情況相比對營收的影響。大約是1800萬到2000萬美元。顯然，美元兌所有主要貨幣都走強，無論是人民幣、日圓或歐元。因此，這對我們的營收影響約為 2,000 萬美元。但同時，從利潤和利潤的角度來看，如您所知，我們確實在歐洲擁有研發設施和生產設施，在中國也有生產。

So what ends up happening for us is that the top line has been compressed by, say, for the full year by about $18 million, $20 million, but the gross margin becomes a little bit more difficult for us. I would say we are more -- somewhat less impacted because our costs also go down along with the revenue impact. So I would say we are reasonably buffered, I would say, probably less than 50 basis points impact on gross margin percentage for the full year due to the dollar strengthening, I would probably guess towards that. It's probably not more than that. Whether it is really 30 basis points or 50 basis points, I do not have that level of accuracy.

因此，最終我們的結果是，全年收入被壓縮了約 1800 萬美元、2000 萬美元，但毛利率對我們來說變得有點困難。我想說的是，我們受到的影響更大——稍微小一些，因為我們的成本也隨著收入影響而下降。因此，我想說，由於美元走強，我們受到了合理的緩衝，對全年毛利率的影響可能不到 50 個基點，我可能會猜測這一點。可能僅此而已。不管是真的30個基點還是50個基點，我都沒有那麼準確。

But I do have good clarity around top line impact. Don't know if that is exactly what you were looking for or you're looking -- or you were questioning from a different perspective.

但我確實很清楚對營收的影響。不知道這是否正是您正在尋找的或您正在尋找的，或者您是從不同的角度提出疑問的。

No, that's clear. And then last one for me, just on capital allocation. The company has done tuck-in M&A in the past several years, we haven't seen anything on the activity front, although prices in public and private markets have shifted here a bit. So just the latest thoughts on tuck-in M&A activity.

不，這很清楚。最後一個是關於資本配置的。該公司在過去幾年中進行了一些併購活動，儘管公共和私人市場的價格已經發生了一些變化，但我們沒有看到任何活動。以上就是關於併購活動的最新想法。

Anthony, we've still been focused on strengthening our balance sheet, paying down debt, and we expect to continue to do that to get to our target leverage levels. So for fiscal '23, we'll continue down that track of supporting the investments that we need to make in India, in our factories and the capital budget deployed in that direction. No particular specific plans for moving off of that trajectory at this time.

安東尼，我們仍然專注於加強我們的資產負債表、償還債務，我們預計將繼續這樣做，以達到我們的目標槓桿水平。因此，在 23 財年，我們將繼續支持我們在印度、我們的工廠進行的投資以及朝這個方向部署的資本預算。目前還沒有脫離這一軌蹟的具體計劃。

Yes. I would just add, Anthony, a little bit more color to what just Sunny said that first priority for us is to keep on investing in our business organically, which would be through investing in working capital and fully funding R&D and other priorities. But at the same time, as we look forward to this upcoming year, we are -- we would need to invest a little bit more CapEx than what we have traditionally done in the past. We are looking at high capacity utilization for our tubes factory here in Salt Lake City. So we are investing a little bit more in tubes factory here in Salt Lake as well as elsewhere in the world. So CapEx, we expect to run a little bit higher in fiscal '23 than what it was for fiscal '22 for us.

是的。安東尼，我想補充一點，桑尼剛才所說的，我們的首要任務是繼續對我們的業務進行有機投資，這將透過投資營運資本並為研發和其他優先事項提供充分資金。但同時，當我們期待即將到來的一年時，我們需要比過去傳統上投資更多的資本支出。我們正在尋求鹽湖城管材工廠的高產能利用率。因此，我們對鹽湖城以及世界其他地方的管材工廠進行了更多投資。因此，我們預期 23 財年的資本支出將略高於 22 財年。

And Anthony, we've always had a fairly good visibility to prospects and opportunities in organic opportunities. We have -- as you know, we stay in touch with a lot of the companies in this space. So we'll continue to stay connected and in touch with opportunities, but we'll -- if something does materialize, then of course, we're not going to look away from it.

安東尼，我們一直對有機機會的前景和機會有相當好的了解。如您所知，我們與該領域的許多公司保持聯繫。因此，我們將繼續保持聯繫並抓住機遇，但如果某件事確實實現，那麼我們當然不會放棄它。

But at this point, we're not actively pursuing any particular M&A opportunities.

但目前，我們並沒有積極尋求任何特定的併購機會。

Next question today is coming from Jim Sidoti from Sidoti & Company.

今天的下一個問題來自 Sidoti & Company 的 Jim Sidoti。

Can you talk a little bit more about pricing, the price increases you put in earlier this year seem to be (inaudible), do you think that they're going to increase pricing again in fiscal 2023 if your costs continue to rise?

您能否多談談定價問題，您今年早些時候提出的價格上漲似乎（聽不清楚），您認為如果您的成本繼續上漲，他們是否會在 2023 財年再次提高定價？

Jim. So we have rolled out -- we rolled out price increases. And they have had some effect or they've offset some of the cost increases. However, the cost increase -- the input material cost increases that we've seen have outpaced our ability to realize -- to offset fully the price increases that we've realized during the year. And a part of the reason for that is our -- many of our customers have multiyear contracts and some of them also place large frame orders with us. So until those run out and we get to a renewal point, we're not able to realize the benefit of those price increases. So we will continue to roll out price increases in fiscal '23 as well, and the timing of when they go into effect will impact how much we can realize.

吉姆.所以我們已經推出了價格上漲。它們已經產生了一些效果，或者抵消了部分成本的增加。然而，成本的增加——我們所看到的投入材料成本的增加已經超出了我們實現的能力——完全抵消了我們今年實現的價格上漲。部分原因是我們的——我們的許多客戶都有多年合同，其中一些還向我們下了大型框架訂單。因此，在這些資源用完並且達到更新點之前，我們無法實現價格上漲的好處。因此，我們也將在 23 財年繼續實施漲價，其生效時間將影響我們所能實現的幅度。

And then on the balance sheet, a couple of questions. First one, PP&E is up about $5 million from the June quarter. Is that the investments to increase capacity? Or what else is in there?

然後在資產負債表上，有幾個問題。第一個，PP&E 比 6 月季度增加了約 500 萬美元。這是為了增加產能而進行的投資嗎？或者說裡面還有什麼？

Jim, it was mostly lumpiness in terms of when the payments go out and stuff like that. If you remember last year, we had highlighted to you that this fiscal year in '22 that we just completed, we are looking at CapEx of around $25 million, but it was not straight line throughout -- through every quarter of fiscal '22. But overall, we came out a little bit -- we ended fiscal '22 with around $21 million, $22 million. So we were -- we did not spend as much CapEx as we had hoped to, partly because of supply chain and continued delays from equipment providers. So we were not able to execute all the CapEx plans that we had planned to complete in '22. In '23, we will be higher than $25 million. We just have to see how -- what kind of progress we are able to make in a number of -- make in terms of a number of initiatives that we have for us. Mostly, these are growth initiatives in terms of adding new machines or adding higher productivity machines and mostly around our tube factory.

吉姆，在付款時間之類的方面，主要是不穩定的。如果您還記得去年，我們曾向您強調過，我們剛完成的 22 財年的資本支出約為 2500 萬美元，但在整個 22 財年的每個季度，資本支出並不是直線。但總體而言，我們取得了一些成果——22 財年結束時，我們的收入約為 2,100 萬美元、2,200 萬美元。因此，我們的資本支出沒有達到我們希望的那麼多，部分原因是供應鏈和設備提供者的持續延誤。因此，我們無法執行計劃在 22 年完成的所有資本支出計劃。 23 年，我們的收入將超過 2500 萬美元。我們只需要看看我們能夠在許多方面取得什麼樣的進展，以及我們為我們制定的一些措施。大多數情況下，這些都是在添加新機器或添加更高生產率的機器方面的成長舉措，並且主要圍繞我們的管材工廠。

All right. And then just a quick one on cash. You reported in your presentation, $113 million in cash and equivalents. You're always showing $89 million on the balance sheet. So is that other $24 million in other assets?

好的。然後是快速的現金。您在演示中報告了 1.13 億美元的現金及等價物。資產負債表上總是顯示 8,900 萬美元。那麼另外 2400 萬美元是其他資產嗎？

Yes. Jim, thanks a lot for asking that question. Yes. So our cash is really $113 million, but one of the GAAP rules for presenting cash on the balance sheet is that any investments, say, in fixed deposits or CDs or other securities that we do, which is more than 90 days, then we need to present it elsewhere in the balance sheet. Given the interest rate environment, obviously, we want to generate some interest income from our cash portfolio. So the balance sheet presented cash is $89 million. But once you add all the other, call it, securities or fixed deposits and stuff like that, that we have invested in commercial paper, and all of that added up, that's $113 million. So from my perspective, I look at it as $113 million.

是的。吉姆，非常感謝你提出這個問題。是的。因此，我們的現金實際上是1.13 億美元，但在資產負債表上列示現金的GAAP 規則之一是，我們進行的任何投資（例如定期存款、定期存款或其他證券）超過90 天，那麼我們需要將其列示在資產負債表的其他位置。顯然，考慮到利率環境，我們希望從現金投資組合中產生一些利息收入。因此，資產負債表上列示的現金為 8,900 萬美元。但是，一旦你把我們投資於商業票據的所有其他東西（稱為證券或定期存款之類的東西）加起來，所有這些加起來就是 1.13 億美元。所以從我的角度來看，我認為它是 1.13 億美元。

We reached the end of our question-and-answer session. I'd like to turn the floor back over to Chris for any further or closing comments.

我們的問答環節結束了。我想將發言權交還給克里斯，以徵求進一步或結束評論的意見。

Great. Thank you for your questions. Sunny, any final comments?

偉大的。謝謝您的提問。 Sunny，最後有什麼意見嗎？

Yes. Thank you, Chris. Look, in closing, we're very happy with the solid results, which we have posted for a consecutive year with both top line and earnings growth. Our internal efforts to diversify our supply chain was a key enabler for these results, and I'm very proud of the effort that our 2,300 employees globally make on a daily basis to make these results possible. Going to that end, I feel that we are well positioned to grow our top line again in fiscal 2023 in what's expected to be a very dynamic environment. Thank you for your continued interest in Varex.

是的。謝謝你，克里斯。最後，我們對穩健的業績感到非常滿意，我們已經連續一年公佈了營收和獲利的成長。我們內部為實現供應鏈多元化所做的努力是取得這些成果的關鍵因素，我為我們全球 2,300 名員工每天為實現這些成果所付出的努力感到非常自豪。為此，我認為我們處於有利位置，可以在預計充滿活力的環境中在 2023 財年再次實現營收成長。感謝您對 Varex 的持續關注。

Thank you, Sunny. Thank you all for participating in our earnings conference call for the fourth quarter of fiscal year 2022. The webcast and supplemental slide presentation will be archived on Varex' website. A replay of the quarterly conference call will be available through November 29 and can be accessed at the company's website or by calling (877) 660-6853 from anywhere in the U.S. or (201) 612-7415 from non-U.S. locations. The replay conference call access code is 13733761. Thank you, and goodbye.

謝謝你，桑尼。感謝大家參加我們 2022 財年第四季的財報電話會議。網路廣播和補充投影片簡報將存檔在 Varex 的網站上。季度電話會議的重播將持續到 11 月 29 日，您可以透過本公司網站或在美國任何地方撥打 (877) 660-6853 或在美國以外地區撥打 (201) 612-7415 進行存取。重播電話會議接入碼是13733761。謝謝，再見。

Thank you. You may now disconnect your lines.

謝謝。現在您可以斷開線路。