Varex Imaging Corp (VREX) 2025 Q2 法說會逐字稿

Greetings and welcome to the Varex Q2 fiscal year 2025 call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host Chris Belfiore, Director of Investor Relations. Thank you, Chris. You may begin.

大家好，歡迎參加 Varex 2025 財年第二季電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興向你們介紹主持人、投資者關係總監 Chris Belfiore。謝謝你，克里斯。你可以開始了。

Good afternoon and welcome to Varex Imaging Corporation's earnings conference call for the second quarter of fiscal year 2025. 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 2025 財年第二季財報電話會議。今天與我一起的有我們的總裁兼執行長 Sunny Sanyal 和我們的財務長 Sam Maheshwari。

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

請注意，我們電話會議的現場網路直播包含一份補充幻燈片演示，可在 Varex 的網站 vareximaging.com 上觀看。網路直播和補充幻燈片簡報將在 Varex 的網站上存檔。

To simplify our discussion, unless otherwise stated, all references to the quarter are for the second quarter of fiscal year 2025. In addition, unless otherwise stated, quarterly comparisons are made year-over-year from the second quarter of fiscal year 2025 to the second quarter of fiscal year 2024. Finally, all references to the year are to the fiscal year and not the calendar year unless otherwise stated.

為了簡化我們的討論，除非另有說明，所有提及的季度均指 2025 財年第二季。此外，除非另有說明，季度比較是指 2025 財年第二季與 2024 財年第二季的年比比較。最後，除非另有說明，所有提及的年份均指財政年度，而非日曆年度。

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 information, expectations, and assumptions that are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated.

請注意，在本次電話會議中我們將做出前瞻性陳述，即對未來事件的預測和預期。這些聲明是基於當前資訊、預期和假設，受風險和不確定性的影響，可能導致實際結果與預期結果有重大差異。

Risks relating to our business are described in our quarterly earnings release and our filings with the SEC. 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.

與我們的業務相關的風險在我們的季度收益報告和向美國證券交易委員會提交的文件中進行了描述。有關可能導致實際結果與預期結果大不相同的因素的其他資訊包含在我們向美國證券交易委員會提交的文件中，包括第 1A 項、10-Q 表季度報告的風險因素和 10-K 表年度報告。本討論中的資訊截至今日有效，我們不承擔更新或修改本討論中前瞻性陳述的義務。

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 (non-GAAP) 指標並非依照 GAAP 財務指標呈現，也無法取代 GAAP 財務指標。我們在網站上發布的收益新聞稿中提供了每項非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表。

With that, I will now turn the call over to Sunny.

說完這些，我現在將電話轉給 Sunny。

Thank you, Chris. Good afternoon everyone and thank you for joining us for our second quarter earnings call. We continue to see strong demand in the second quarter, which resulted in revenue near the high end of our expectations.

謝謝你，克里斯。大家下午好，感謝大家參加我們的第二季財報電話會議。我們繼續看到第二季的強勁需求，這使得營收接近我們預期的高端。

Both the Medical and Industrial segment delivered year-over-year revenue growth as we continue to see solid order coverage during the quarter. Gross margin of 36% in the quarter was higher than anticipated. This was primarily the result of improved volume, favorable product sales mix, and productivity gains in both segments.

由於本季我們繼續看到穩固的訂單覆蓋率，醫療和工業部門的收入均實現了同比增長。本季毛利率為36%，高於預期。這主要是由於兩個部門的銷售增加、產品銷售組合良好以及生產力提高。

Cash generation was strong with cash from operations of $17 million in the quarter. This was driven by improved profitability and continued solid working capital management.

本季現金產生能力強勁，經營活動產生的現金為 1,700 萬美元。這是由獲利能力的提高和持續穩健的營運資本管理所推動的。

Turning to the second quarter results, total revenue in both Medical and Industrial segments were up 3% year-over-year, respectively. Non-GAAP gross margin was 36%, up from 33% in the same quarter last year. Adjust EBITDA and non-GAAP EPS in the second quarter were $34 million and $0.26 compared to $25 million and $0.16 last year, respectively.

展望第二季的業績，醫療和工業部門的總收入分別較去年同期成長 3%。非公認會計準則毛利率為 36%，高於去年同期的 33%。第二季調整後 EBITDA 和非 GAAP EPS 分別為 3,400 萬美元和 0.26 美元，而去年同期分別為 2,500 萬美元和 0.16 美元。

We ended the second quarter with $226 million worth of cash, cash equivalents, and marketable securities on the balance sheet, up $13 million compared to fiscal 2024 year-end, and up $36 million year-over-year. In addition, we also have $125 million of restricted cash raised from our senior secured debt offering in December. As noted in our press release earlier today, we plan to use this restricted cash and other cash on hand to repay the outstanding principle of our convertible notes upon maturity in June.

截至第二季末，我們的資產負債表上有價值 2.26 億美元的現金、現金等價物和有價證券，與 2024 財年末相比增加了 1,300 萬美元，與去年同期相比增加了 3,600 萬美元。此外，我們還從 12 月發行的優先擔保債務中籌集了 1.25 億美元的受限現金。正如我們今天早些時候的新聞稿中所述，我們計劃使用這些受限現金和其他現金來償還 6 月到期的可轉換票據的未償還本金。

Let me give you some highlights of sales detailed by modality in the quarter compared to a five quarter average, which we will refer to as the sales trend. Across both medical tubes and detectors, we continued to see strong demand in the quarter with improved mix, which drove increased profitability.

讓我向您介紹本季按銷售方式詳細列出的一些銷售亮點，並與五個季度的平均值進行比較，我們稱之為銷售趨勢。本季度，我們繼續看到醫療管和探測器的強勁需求，產品組合得到改善，從而推動了盈利能力的提高。

Sales in our Medical segment were up in the quarter, led by solid global sales of CT tubes, which were in line with their sales trend. Cells in fluoroscopy, oncology, mammography, and dental modalities were all above their respective cell trends in the quarter. Radiography was below its sales trend in the quarter.

本季度，我們醫療部門的銷售額有所成長，其中 CT 管的全球銷售強勁，符合其銷售趨勢。本季度，透視檢查、腫瘤學、乳房 X 光攝影和牙科檢查的細胞均高於各自的細胞趨勢。本季放射攝影的銷售低於趨勢。

Our Industrial segment continued to see strong demand. Strengthened global security screening drove the sales of cargo inspection component, as well as security inspection systems.

我們的工業部門持續保持強勁的需求。全球安全檢查的加強推動了貨物檢查部件以及安全檢查系統的銷售。

We continue to see increased demand for checked baggage inspection and cargo screening at airports, as well as non-destructive inspection in verticals such as aerospace and automotive. This demand drove growth in our industrial X-ray tube components product line, which continued to grow.

我們持續看到機場對托運行李檢查和貨物篩檢的需求不斷增加，以及航空航太和汽車等垂直行業的無損檢測需求也不斷增加。這種需求推動了我們的工業X射線管組件產品線的成長，並且該產品線持續成長。

Now, let me switch gears to talk about how the current tariff environment is impacting Varex. Let me also remind you that it is a very dynamic environment and our discussion today relates to the current tariff rates. The most pronounced impact of the tariffs for Varex as of today is due to the bilateral tariffs between the US and China.

現在，讓我換個話題，談談當前的關稅環境對 Varex 的影響。我還要提醒大家，這是一個非常動態的環境，我們今天的討論涉及當前的關稅稅率。截至目前，關稅對 Varex 最明顯的影響是美國和中國之間的雙邊關稅。

First, on the sales front, we currently expect that the 125% tariff imposed by China on the US products could negatively impact sales by about $20 million in the third quarter. This is primarily due to a pause in purchases by some of our China-based customers.

首先，在銷售方面，我們目前預期中國對美國產品徵收 125% 的關稅可能會對第三季的銷售額造成約 2,000 萬美元的負面影響。這主要是因為我們的一些中國客戶暫停了採購。

Our customers typically maintain some level of inventory of our components, and some customers appear to be pushing back deliveries to buy some time to see if there could be an improvement in the tariff rates or if exemptions might become available to them. Separately, we are actively working on implementing a number of options that could reduce the impact for our customers in the near-term, including pursuing commonly utilized mitigation practices and localizing more manufacturing activity in the region.

我們的客戶通常會保留一定水平的零件庫存，而一些客戶似乎正在推遲交貨，以爭取一些時間來看看關稅稅率是否會有所改善，或者他們是否可以獲得豁免。另外，我們正在積極努力實施一系列可以在短期內減少對客戶影響的方案，包括推行常用的緩解措施和在該地區進行更多的製造活動。

Second, on the cost side, raw materials and components sourced from global suppliers can include tariffs ranging from 10% to 145%. On an annual basis, materials imported into the US from China represent approximately 3% of total cost of goods sold. And roughly 17% of the cost of goods sold is imported from the rest of the world.

其次，在成本方面，來自全球供應商的原料和零件可能包含10%至145%的關稅。每年，從中國進口到美國的材料約佔商品總銷售成本的 3%。大約17%的銷售商品成本是從世界其他地區進口的。

Our mitigation actions include passing the tariff charges to our customers, redirecting material purchases to suppliers in lower tariff countries, shifting manufacturing closer to the region of consumption, and localizing supply chain where possible. We expect the impact on our gross margins, net of the mitigation efforts to be in the 150- to 200-basis-point range on a go-forward basis.

我們的緩解措施包括將關稅轉嫁給客戶、將材料採購轉向關稅較低國家的供應商、將製造業轉移到更靠近消費地區的地方、以及盡可能實現供應鏈本地化。我們預計，扣除緩解措施後，我們的毛利率將受到 150 至 200 個基點的影響。

Separately, you may have seen reports that the China Ministry of Commerce recently initiated two investigations of medical products imported into China. One investigation relates to the impact of imports of X-ray tubes on the domestic industry and its competitiveness.

另外，大家可能已經看到報道，中國商務部最近對進口到中國的兩項醫療產品發起了調查。其中一項調查涉及進口X射線管對國內產業及其競爭力的影響。

And the other investigation relates to alleged sales in China of medical CT X-ray tubes and tube inserts made in the US and India at prices that are less than what they are sold for in their home countries. We produce X-ray tubes for CTs in the United States but not in India. We intend to cooperate with the investigation.

另一項調查涉及涉嫌在中國以低於本國價格的價格銷售美國和印度生產的醫用 CT X 射線管和管插件。我們在美國生產 CT 機的 X 光管，但在印度不生產。我們打算配合調查。

Moving to some product highlights. In Medical, I am happy to note that our largest customer, Canon Medical Systems, introduced in Japan last month at the International Technical Exhibition of Medical Imaging Trade Show in Yokohama, a very innovative new CT system called Aquilion Rise, which uses a CT tube made by Varex.

轉向一些產品亮點。在醫療領域，我很高興地註意到，我們最大的客戶佳能醫療系統上個月在日本橫濱舉行的國際醫學影像技術展覽會上推出了一款非常創新的新型 CT 系統，名為 Aquilion Rise，該系統使用了 Varex 製造的 CT 管。

Aquilion Rise is a whole body CT scanner and the first of its kind to be able to image a patient in multiple positions, from lying down, to sitting, to standing vertically, enabling detection of lesions that may not be visible in a lying down position. This type of operation requires immense mechanical sophistication, and Varex' tubes have demonstrated the ability to perform under high G forces while rotating at different angles. We are proud of our partnership with Canon and our continued collaboration on new products.

Aquilion Rise 是一款全身 CT 掃描儀，也是同類產品中第一款能夠對患者在多種姿勢下進行成像的掃描儀，從躺著、坐著到垂直站立，可以檢測到躺著時可能無法看到的病變。這種操作需要極其複雜的機械技術，而 Varex 的管子已經證明了能夠在高 G 力作用下以不同角度旋轉的能力。我們為與佳能的合作夥伴關係以及在新產品上的持續合作感到自豪。

In photon counting, as mentioned previously, we continue to be actively engaged with large imaging OEMs to integrate our photon counting detector technology in their next-generation CT systems. We have two OEMs who are active in their R&D process and others in our pipeline who are evaluating our technology.

在光子計數方面，如前所述，我們繼續積極與大型成像 OEM 合作，將我們的光子計數偵測器技術整合到他們的下一代 CT 系統中。我們有兩家原始設備製造商正在積極進行研發工作，其他原始設備製造商也在評估我們的技術。

With photon counting, we have moved past the technology invention part of our development process, and now we are in our typical new platform introduction process with our OEMs who in turn are in different stages of their new systems development. This week at the control trade show in Stuttgart, Germany, which is one of the largest industrial non-destructive inspection technology conferences in the world, we are prominently showcasing our photon counting technologies for industrial imaging.

透過光子計數，我們已經完成了開發過程的技術發明部分，現在我們正與 OEM 一起進行典型的新平台引入過程，而 OEM 又處於新系統開發的不同階段。本週，在德國斯圖加特舉行的控制貿易展上，我們將重點介紹用於工業成像的光子計數技術，該展會是世界上最大的工業無損檢測技術會議之一。

A key offering is a product called Thor, which is a linear array detector for high-speed 3D imaging and inspection of the speed of production. This product is also suitable for certain medical imaging applications. I'm happy to say that we are continuing to make forward progress with driving adoption of photon counting and expect it to be a future growth driver for Varex.

一款主要產品是名為 Thor 的產品，它是一種用於高速 3D 成像和生產速度檢查的線性陣列探測器。該產品也適用於某些醫學影像應用。我很高興地說，我們在推動光子計數的採用方面繼續取得進展，並期望它成為 Varex 未來的成長動力。

In our Industrial segment where cargo systems is a key focus, today we announced a new order worth $25 million to provide cargo inspection systems. This order is from an international customer for portal systems that will be used to secure sea and land ports.

在我們的工業領域，貨物系統是重點關注的焦點，今天我們宣布了一項價值 2500 萬美元的新訂單，用於提供貨物檢查系統。該訂單來自一位國際客戶，訂購的門戶系統將用於保護海陸港口的安全。

This order is in addition to the $14 million of orders that we announced last quarter from other international customers. As is typical for these orders, they are expected to be installed over the next 12 to 18 months.

這項訂單是對我們上個季度宣布的其他國際客戶的價值 1400 萬美元訂單的補充。對於這些訂單來說，預計它們將在未來 12 到 18 個月內安裝。

Two to three years after installing these systems, we expect to see an ongoing service revenue stream from these customers. We are seeing good traction with our offerings and continue to engage with many customers and prospects regarding new systems opportunities.

安裝這些系統兩到三年後，我們預計將看到這些客戶的持續服務收入流。我們看到我們的產品具有良好的吸引力，並繼續與許多客戶和潛在客戶就新的系統機會進行接觸。

In summary, we're pleased with our solid first half performance and with the exception of China, encouraged by the demand trends across our business. While there are headwinds from the current tariff situation, we are partnering with our suppliers and customers to find ways to mitigate the impacts.

總而言之，我們對上半年的穩健業績感到滿意，除中國外，整個業務的需求趨勢也令我們感到鼓舞。儘管當前關稅情況存在阻力，但我們正在與供應商和客戶合作，尋找減輕影響的方法。

Considering the mitigation efforts that we have in flight at this point, particularly in China, we're not planning any restructuring in our China business. Also, our customers have not canceled any orders in our $316 million backlog at quarter end. In addition, we remain committed to paying down our convertible debt next month.

考慮到我們目前正在採取的緩解措施，特別是在中國，我們不打算對中國業務進行任何重組。此外，截至本季末，我們的客戶尚未取消我們價值 3.16 億美元的積壓訂單中的任何訂單。此外，我們仍承諾下個月償還可轉換債務。

We will stay close to the evolving geopolitical situation and adjust our mitigation plans as necessary. We intend to continue to execute on our long-range growth strategies that are based on innovation and cost leadership, and in parallel, continue to invest in our regional manufacturing operations and supply chain capabilities.

我們將密切關注地緣政治局勢的變化，並根據需要調整我們的緩解計劃。我們打算繼續執行基於創新和成本領先的長期成長策略，同時繼續投資於我們的區域製造業務和供應鏈能力。

I'd like to thank all our employees globally for their hard work and commitment in working through this challenging environment. With that, let me hand over the call to Sam.

我要感謝我們全球的所有員工在這種充滿挑戰的環境中辛勤工作和奉獻。說完這些，我把電話交給 Sam。

Thanks, Sunny, and hello, everyone. Turning to the results for the quarter. Our revenues in the second quarter were $213 million above the midpoint of our guidance. Non-GAAP gross margin was 36% and non-GAAP EPS was $0.26, both above our expectations.

謝謝，Sunny，大家好。談談本季的業績。我們第二季的營收比預期中位數高出 2.13 億美元。非公認會計準則毛利率為 36%，非公認會計準則每股收益為 0.26 美元，均高於我們的預期。

Comparing the second quarter to the same period in fiscal '24, revenues increased 3%. This increase was driven by a 3% increase in both our Medical and Industrial segments.

與 24 財年同期相比，第二季營收成長了 3%。這一增長得益於醫療和工業部門 3% 的增長。

Medical revenues were $154 million and Industrial revenues were $59 million. Medical revenues constituted 72% of total, and industrial revenues were 28% of our total revenue for the quarter.

醫療收入為 1.54 億美元，工業收入為 5,900 萬美元。醫療收入佔本季總收入的 72%，工業收入佔本季總收入的 28%。

Analyzing revenues by region, America saw an increase of 2% compared to the second quarter of fiscal '24. EMEA revenues were flat while APAC increased 8% due primarily to increased sales in China. During the quarter, China sales for 15% of total sales. China's sales increased 25% year-over-year and declined 11% compared to the prior quarter.

按地區分析收入，美洲的收入與 2024 財年第二季相比成長了 2%。歐洲、中東和非洲地區的收入持平，而亞太地區的收入則成長 8%，主要原因是中國銷售額的成長。本季，中國市場的銷售額佔總銷售額的15%。中國銷售額年增25%，季減11%。

Let me now cover our results on a GAAP basis. Second quarter gross margin was 36%, up approximately 400 basis points year-over-year. Operating expenses were $55 million a decrease of $3 million compared to the second quarter of fiscal '24.

現在讓我根據 GAAP 介紹一下我們的業績。第二季毛利率為36%，年增約400個基點。營運費用為 5,500 萬美元，與 24 財年第二季相比減少了 300 萬美元。

Operating income was $22 million an increase of $14 million from Q2 of fiscal '24. Net earnings was $7 million and GAAP EPS was cents per share based on fully diluted 51 million shares.

營業收入為 2,200 萬美元，較 24 財年第二季增加 1,400 萬美元。淨收益為 700 萬美元，基於完全稀釋的 5100 萬股，GAAP EPS 為每股美分。

Now moving on to the non-GAAP results for the quarter. Gross margin was 36%, an increase of 350 basis points year-over-year, primarily due to increased volume, favorable product sales mix, and productivity gains in both the segments. This was particularly the case in our Medical segment, which posted a record gross margin in the quarter.

現在來看看本季非公認的會計準則業績。毛利率為 36%，比去年同期增加 350 個基點，主要由於銷量增加、產品銷售組合有利以及兩個部門的生產力提高。我們的醫療部門尤其如此，該部門本季的毛利率創下了歷史新高。

R&D spending in the second quarter was $22 million, a decrease of approximately $1 million compared to the second quarter of fiscal '24 and representing 10% of revenues. Of note, R&D in the second quarter of fiscal '24 included a $1 million milestone payment for the transfer of technology from Micro-X.

第二季的研發支出為 2,200 萬美元，與 24 財年第二季相比減少約 100 萬美元，佔營收的 10%。值得注意的是，24 財年第二季的研發包括從 Micro-X 轉移技術的 100 萬美元里程碑付款。

SG&A expense was $29 million a decrease of $3 million compared to the second quarter of fiscal '24 and representing 14% of revenues. The decrease in SG&A was primarily due to a decrease in expenses associated with one of our joint ventures.

銷售、一般及行政費用為 2,900 萬美元，與 24 財年第二季相比減少了 300 萬美元，佔營收的 14%。銷售、一般及行政費用的減少主要是由於我們其中一家合資企業的相關費用減少。

Consequently, operating expenses totaled $51 million a decrease of $3 million and representing 24% of revenues. Operating income was $26 million an increase of $13 million compared to the previous year, and operating margin was 12% of revenue, up from 6% in the second quarter of fiscal '24.

因此，營運費用總計 5,100 萬美元，減少 300 萬美元，佔收入的 24%。營業收入為 2,600 萬美元，比上年增加 1,300 萬美元，營業利潤率為收入的 12%，高於 24 財年第二季的 6%。

Tax expense in the second quarter was $3 million or 21% of pre-tax income compared to $2 million or 19% in the second quarter of fiscal '24. Net earnings were $12 million or $0.26 per diluted share compared to $0.16 in the year ago quarter. Average diluted shares for the quarter on a non-GAAP basis were $51 million.

第二季的稅費為 300 萬美元，佔稅前收入的 21%，而 24 財年第二季的稅費為 200 萬美元，佔稅前收入的 19%。淨收益為 1,200 萬美元，即每股 0.26 美元，而去年同期為 0.16 美元。以非公認會計準則計算，本季平均攤薄股份為 5,100 萬美元。

Now turning to the balance sheet, accounts receivable increased by $8 million and day sales outstanding declined by six days to 62 days in the quarter. The increase in accounts receivables was largely related to the higher sales in the quarter.

現在轉向資產負債表，本季應收帳款增加了 800 萬美元，未收帳款天數減少了 6 天至 62 天。應收帳款的增加主要與本季銷售額的增加有關。

Inventory increased by $5 million in the second quarter, and days of inventory decreased by 19 days to 190 days. The increase in inventory was primarily due to a build-up prior to the tariffs. Accounts payable increased by $5 million and days payable decreased by two days to 47 days.

第二季庫存增加了500萬美元，庫存天數減少了19天至190天。庫存增加主要是由於關稅之前的累積。應付帳款增加了 500 萬美元，應付天數減少了兩天至 47 天。

Now moving to debt and cash flow information. Net cash flow from operations was $17 million. We ended the quarter with cash, cash equivalents, and marketable securities of $226 million, up $36 million compared to the second quarter of the prior year and up $7 million compared to the first quarter of 2025.

現在轉向債務和現金流資訊。經營活動產生的淨現金流為 1,700 萬美元。截至本季末，我們的現金、現金等價物和有價證券為 2.26 億美元，比去年同期第二季增加 3,600 萬美元，比 2025 年第一季增加 700 萬美元。

The $226 million includes $205 million of cash and cash equivalents, and $21 million of marketable securities. In addition to $226 million of cash, we also have $125 million of restricted cash raised through our senior secured add on debt offering, which is currently held in a restricted account earmarked for paying down our convertible notes.

這 2.26 億美元包括 2.05 億美元的現金和現金等價物，以及 2,100 萬美元的有價證券。除了 2.26 億美元現金外，我們還透過發行優先擔保附加債務籌集了 1.25 億美元的受限現金，這些現金目前存放在一個專用於償還可轉換票據的受限帳戶中。

As mentioned previously, we plan to repay the outstanding principle of $200 million for convertible notes upon maturity in June. We are pleased to be able to pay off the convertible notes, which will reduce our overall debt burden and simplify our capital structure.

如前所述，我們計劃在 6 月到期時償還 2 億美元的可轉換票據未償還本金。我們很高興能夠償還可轉換票據，這將減少我們的整體債務負擔並簡化我們的資本結構。

Gross debt outstanding at the end of the quarter was $570 million and debt net of $226 million of cash and marketable securities and $125 million of restricted cash was $219 million.

本季末未償還債務總額為 5.7 億美元，扣除 2.26 億美元現金和有價證券以及 1.25 億美元受限現金後的債務淨額為 2.19 億美元。

Adjusted EBITDA for the quarter was $34 million or 16% of sales. Our trailing 12-months adjusted EBITDA was $103 million and our net debt leverage ratio was approximately 2.1 times adjusted EBITDA on a trailing 12-month basis.

本季調整後的 EBITDA 為 3,400 萬美元，佔銷售額的 16%。我們過去 12 個月的調整後 EBITDA 為 1.03 億美元，我們的淨負債槓桿比率約為過去 12 個月調整後 EBITDA 的 2.1 倍。

Now, moving on to outlook for the third quarter. Under the current tariff environment, we see sales impact of roughly $20 million in China and gross margin impact of 150 basis points to 200 basis points, driven by increase in cost of goods sold, net of price increases to customers. In total, the lower sales and gross margin impact could result in an approximately $0.15 to $0.20 reduction of EPS in the third quarter.

現在，我們來談談第三季的展望。在當前關稅環境下，我們預計中國市場的銷售額將受到約 2,000 萬美元的影響，毛利率將受到 150 個基點至 200 個基點的影響，這是由於銷售成本增加（扣除客戶價格上漲）所致。總體而言，銷售額和毛利率的下降可能導致第三季每股收益減少約 0.15 美元至 0.20 美元。

With that as a backdrop, our guidance for the third quarter is as follows. Revenues are expected between $180 million and $200 million and we are assuming that sales in China are approximately $10 million for the third quarter.

基於此背景，我們對第三季的預測如下。預計營收在 1.8 億美元至 2 億美元之間，我們假設第三季在中國的銷售額約為 1,000 萬美元。

Non-GAAP earnings per diluted share are expected between a $0.05 loss and $0.10 of profit. Our expectations are based on a non-GAAP gross margin of 32% to 33%, and these figures include 150 basis points impact from tariff-related costs.

非公認會計準則每股攤薄收益預計在虧損 0.05 美元至獲利 0.10 美元之間。我們的預期是基於 32% 至 33% 的非 GAAP 毛利率，這些數字包括關稅相關成本的 150 個基點的影響。

Non-GAAP operating expenses are expected approximately $51 million. Interest and other expenses on a net basis in a range of $9 million to $10 million. Tax rate of about 25% for the third quarter and non-GAAP diluted share count of about 41 million shares.

非公認會計準則營運費用預計約為 5,100 萬美元。淨利息和其他支出在 900 萬美元至 1000 萬美元之間。第三季稅率約25%，非公認會計準則稀釋股數約4,100萬股。

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

現在，我們將開始回答大家的提問。

(Operator Instructions) Young Li, Jefferies.

(操作員指示) Young Li，Jefferies。

I guess to start, first on China, it's good to see that despite the really high tariff rates, some customers are still placing orders. I was wondering if you can talk a little bit about the types of orders that are still coming in?

我想先談談中國，我很高興看到，儘管關稅稅率很高，但有些客戶仍在下訂單。我想知道您是否可以談談目前仍在接收的訂單類型？

And then for the ones that paused purchases, have they given any indication for what they'll need to see before resuming purchasing? And then, zooming out, any updates on potential stimulus in China as well as Medical exemptions?

那麼對於那些暫停購買的人，他們是否給出了任何跡象表明在恢復購買之前他們需要看到什麼？然後，放眼望去，中國的潛在刺激措施以及醫療豁免有何最新消息？

So the first one regarding orders in China, there isn't -- the mix of orders that we've seen continue to be similar to what we've seen in other quarters. The key difference is that for some of the more expensive tubes, particularly the ones that are shipped directly from the US, that's where we saw the pause.

因此，第一個關於中國訂單的問題，我們看到的訂單組合與我們在其他季度看到的訂單組合類似。關鍵的區別在於，對於一些更昂貴的管子，特別是直接從美國運來的管子，我們看到了停頓。

So we have orders. Good news. All the things we said previously, that is the audit was over and it would start buying would begin again. And then we had also said that destocking was over. Those things pretty much panned out the way we had laid it out. So we started in the first two quarters, we saw uptakes in order and the order intake rate was good.

所以我們有訂單。好消息。我們之前說過的所有事情，即審計已經結束，購買將再次開始。然後我們也說過去庫存已經結束。這些事情基本上是按照我們計劃的方式進行。因此，我們從前兩個季度開始就看到訂單量上升，而且訂單量率也很好。

And so the pause that I talked about is mainly when a customer, I just give an illustrative example, if a customer placed an order for 300 tubes. They say, look, here's an order. It's with the farm PO, but in terms of delivery dates, give me the first 100. Hold off on the next 200 until I figure out what's going on.

因此，我談到的停頓主要是指當客戶下訂單時，我只是舉一個例子，如果客戶訂購了 300 根管子。他們說，看，這是訂單。這是農場採購訂單，但就交貨日期而言，請給我前 100 個。在我弄清楚發生了什麼事之前，請先不要進行接下來的 200 次。

So that's the drift of what we meant by the pause. They need those tubes. The X-ray tubes are used for new systems as well as for replacements, so they need them. So that's the backdrop here.

這就是我們暫停的意思。他們需要那些管子。X射線管既可用於新系統，也可用於替換，所以他們需要它們。這就是這裡的背景。

Now, we make certain products in China as well. Some of our tubes are made in China and some of our detectors are also made in China. And then we also sell industrial extra tubes and detectors in China. So we continue to see the same profile of orders for the deliveries and were lower and some of the industrial order volume was slightly lower.

現在，我們也在中國生產某些產品。我們的一些管子是中國製造的，我們的一些探測器也是中國製造的。此外，我們也在中國銷售工業備用管和探測器。因此，我們繼續看到訂單交付情況相同，但數量較低，部分工業訂單量略有下降。

Yeah. One thing I can add there, Young, for you is that as you know, we provide some of our products from Netherlands or Philippines or countries outside of the US, so business from those countries into China is continuing as it is. But the business from US into China, as mentioned, is on pause, and the customers are trying to see -- they're trying to buy some time here and exhausting their inventory right now because they're hoping maybe there is a trade deal or maybe some other situation changes that makes it a little bit more affordable for them.

是的。楊，我可以補充一點，正如你所知，我們的部分產品來自荷蘭、菲律賓或美國以外的國家，因此這些國家對華業務仍在繼續。但正如所提到的，從美國到中國的業務處於暫停狀態，客戶正在試圖看到——他們試圖在這裡爭取一些時間並消耗掉他們的庫存，因為他們希望可能會有貿易協議或其他一些情況變化，使他們能夠更負擔得起一些。

And at the same time, we are also pursuing a number of strategies, operational strategies in which we may be able to mitigate the impact of tariffs for our customers in China. Particularly, a number of commonly used operational practices, like a bonded warehouse or a free trade zone or stuff like that. So we are working on it at a very fast and active pace right now.

同時，我們也在推行一系列策略和營運策略，以減輕關稅對中國客戶的影響。特別是一些常用的操作方式，像是保稅倉庫、自由貿易區之類的。因此，我們現在正以非常快速和積極的步伐開展這項工作。

So that is not completed, but we are very hopeful that we are able to complete it by the end of Q3. So right now, we feel that we may be able, either through external environment change on the tariff and trade situation or through our own individual strategies, we may be able to mitigate the impact of tariff for our customers in China. And so that is also causing a little bit of a pause for the time being and we are hopeful of that.

所以這還沒有完成，但我們非常希望能夠在第三季末完成它。因此現在，我們認為我們或許能夠透過外部環境對關稅和貿易狀況的變化，或透過我們自己的個人化策略，來減輕關稅對中國客戶的影響。因此這也暫時導致了一點停頓，我們對此充滿希望。

And besides that, we are pursuing a few other strategies and we can talk about it. But that's specifically what's going on in China and related to the part of buying of a product by our customers in China. Back to you, Sunny.

除此之外，我們還在推行一些其他策略，我們可以討論一下。但這正是中國正在發生的事情，與我們中國客戶購買產品的部分有關。回到你身邊，Sunny。

Yeah, and your second question, Young, was about have you seen anything more with stimulus, any more demand being driven by a stimulus. Yeah, we haven't, and at this point, given everything else that's going on, it's very difficult to piece apart what is impacting what. So I frankly cannot give you any insight into whether the stimulus is working or not, anything beyond what we've said before, which is we haven't seen any direct correlation.

是的，楊，你的第二個問題是，你是否看到刺激措施帶來更多好處，刺激措施是否能推動更多需求。是的，我們還沒有，而且目前，考慮到正在發生的其他一切，很難分辨出哪些因素在影響什麼。因此，坦白說，除了我們之前所說的之外，我無法告訴你刺激措施是否有效，也就是說，我們沒有看到任何直接的相關性。

Okay, understood and I really appreciate the detailed thoughts; understanding it's a very dynamic environment. In fact, tariffs might be changing next week on China, so who knows.

好的，明白了，我真的很欣賞你詳細的想法；我知道這是一個非常動態的環境。事實上，下週針對中國的關稅可能會發生變化，所以誰知道呢。

My follow up here is, just on the $25 million cargo inspection order, it's a pretty big number and last quarter I think you had $14 million. I think last quarter, you said the $14 million takes around a year to turn to revenue this one says, 12 to 18 months.

我的後續問題是，僅就 2500 萬美元的貨物檢驗訂單而言，這是一個相當大的數字，而上個季度我認為您的訂單金額為 1400 萬美元。我認為上個季度您說 1400 萬美元需要大約一年的時間才能轉化為收入，而這個季度則說需要 12 到 18 個月。

I wanted to get a little bit understanding about your capacity to deliver, especially if you expect to get more of these type of deals in subsequent quarters. And then, just wanted to hear your thoughts about the trajectory of these types of orders going forward.

我想稍微了解一下你們的交付能力，特別是如果你們預計在接下來的幾個季度裡能獲得更多此類交易的話。然後，我只是想聽聽您對這類訂單未來走勢的看法。

Yeah, so, at this point -- so first of all, we're really excited that we're getting good traction. We have been bidding on, since we launched these our offerings, we've been actively bidding on tenders and as these start to get into the sales process, we're happy to see that we're able to be successful in these deals.

是的，所以，在這一點上——首先，我們真的很高興我們獲得了良好的進展。自從我們推出這些產品以來，我們一直在積極競標，隨著這些產品開始進入銷售流程，我們很高興看到我們能夠在這些交易中取得成功。

In terms of what it takes to deliver. Our lead times, first of all, we have our lead times, so what we need to do to build a product and for us those lead times are typical 120 days to 180 days. However, these systems typically involve civil works, construction, the local site, depending on the product.

就交付所需的條件而言。我們的交貨時間，首先，我們有交貨時間，所以我們需要做什麼來製造一個產品，對我們來說，這些交貨時間通常是 120 天到 180 天。然而，這些系統通常涉及土木工程、建築、當地場地，具體取決於產品。

If it's a portal, if it's a gantry, then there's construction involved. It's a mobile, then there's really no construction. But invariably when someone sets up this type of scanning, they have to make some changes to roadways and redirect traffic and those kinds of things. So a large part of the lead time is due to civil works and construction work. So that's the point.

如果它是一個門戶，如果它是一個龍門架，那麼就涉及施工。它是一個移動設備，因此實際上不需要構造。但是，當有人設定這種類型的掃描時，他們總是必須對道路進行一些更改並重新引導交通等。因此，很大一部分的準備時間是由於土木工程和建築工程造成。這就是重點。

Depending on the profile of the projects, if there's less construction and we're adding more portals, then it can go in sooner versus sometimes it can take a little longer. So that's why our general statement about 12 to 18 months. If it's mobile systems, then it's only our lead times and it's the lead times so what it takes to order the trucks and the equipment.

根據專案的情況，如果施工較少並且我們添加更多門戶，那麼它可以更快地完成，而有時則可能需要更長的時間。這就是我們關於 12 到 18 個月的總體聲明的原因。如果是行動系統，那麼就只是我們的交貨時間，也就是訂購卡車和設備所需的交貨時間。

So you should expect that the lead times, the delivery times will be in that range. The first order that we -- sorry, the order that we received last quarter, we've begun shipping against those. And those are -- we've got products built, we shipped some, we're waiting for export licenses for the others. They're all packed, ready to go.

因此您應該預計交貨時間和交貨時間將在該範圍內。我們收到的第一筆訂單——抱歉，是我們上個季度收到的訂單，我們已經開始出貨了。我們已經生產了產品，運送了一些產品，我們正在等待其他產品的出口許可。他們都收拾好行李，準備出發了。

So from our side at this point with the volume of orders we've taken. Manufacturing is not a rate limiting factor, it's mostly everything else around us from getting the export licenses lined up, getting the construction completed, and then injecting ourselves in that process. By the way, we don't do the construction work. We have local partners that handle all of the civil works.

從我們目前接到的訂單量來看。製造業並不是一個限制速度的因素，它主要是我們周圍的一切，從獲得出口許可證，完成建設，然後投入這個過程。順便說一句，我們不做建築工作。我們有當地合作夥伴負責所有土木工程。

Okay. Understood. Thank you so much.

好的。明白了。太感謝了。

Larry Solow, CJS Securities.

索洛（Larry Solow），CJS 證券公司。

So I just want a little clarity on that. So the tariffs, the $20 million in revenue is and just to clarify, isn't the predominant revenue driver in China is tubes. I know there is a little bit of, I guess, a little remaining detectors and some industrial detectors. But I thought when we had the last round of tariffs, you got out of most of the -- or not, yeah, I thought you got out of the most excluding the tubes. Is that correct?

所以我只是想稍微澄清一下這一點。因此，需要澄清的是，關稅，即 2000 萬美元的收入，並不是中國的主要收入來源是管材。我知道還有一點，我猜，還有一些剩餘的探測器和一些工業探測器。但我認為，當我們進行上一輪關稅時，你已經擺脫了大部分——或者沒有，是的，我認為你已經擺脫了大部分不包括管道的關稅。對嗎？

So a majority of our revenue in China is from tubes, and that is really CT tubes.

因此，我們在中國的大部分收入來自球管，也就是 CT 球管。

I was just going to say I thought those two customers really don't have it, at least in the short-term, don't really have a choice. And maybe they don't and they're just not like they're not, we're going to find the order from a competitor, but they're just delaying for the inevitable or they -- hoping, right, something will be resolved before they have to buy again.

我只是想說，我認為這兩位顧客真的沒有選擇，至少在短期內沒有。也許他們沒有這樣做，他們只是不想從競爭對手那裡找到訂單，但他們只是在拖延不可避免的事情，或者他們希望在他們再次購買之前解決一些問題。

But if there's no resolution to the tariffs, let's say, in six months from now or what have you, and nothing has changed, and they need replacement tubes. Never mind growth and new machines, which I thought you'd get that too. But on the replacement side, don't they have to come to you, right? Or is there an opportunity to -- or do you -- can you actually lose share?

但如果關稅問題沒有解決，比如說，六個月後，情況沒有任何改變，他們就需要更換管子。別介意增長和新機器，我認為你也會明白這一點。但是在替換方面，他們不必來找你，對嗎？或者是否有機會——或者您是否真的會失去市場份額？

So on the high-end CC tubes, Larry, that is correct. There's no -- they'll have to come to us, at least in the foreseeable future in the near-term. What's happening currently is, I don't know if you missed this part in my script, the customers are, even though they've placed orders, they put a pause, waiting, because they're trying different things on their end as well.

因此，關於高端 CC 管，拉里，這是正確的。沒有──他們必須來找我們，至少在可預見的近期內是如此。目前發生的情況是，我不知道您是否錯過了我腳本中的這部分，即使客戶已經下了訂單，他們也會暫停，等待，因為他們也在嘗試不同的事情。

First of all, most of our customers carry a certain amount of inventory. They carry anywhere between 60 to 90 days' worth of inventory. So they can bleed that down for some time while they're biding time to see if they're also lobbying their local governments for exemptions. They're also trying to figure out, working with us to figure out how alternate ways of getting products to them might work.

首先，我們的大多數客戶都持有一定數量的庫存。他們持有可供 60 至 90 天使用的庫存。因此，他們可以暫時減少這筆開支，同時等待時機，看看他們是否也在遊說當地政府獲得豁免。他們也試圖與我們合作，尋找其他可行的方式來提供產品給他們。

As you know, we're able to make certain tubes in China and get made in China designation for them. And those, when we do that, we ship parts and those parts have lower value and they come into the country with even though the tariff rate is the same, the tariff exposure is lower.

如您所知，我們能夠在中國生產某些管材並獲得中國製造的頭銜。當我們這樣做時，我們會運送零件，這些零件的價值較低，即使關稅稅率相同，它們進入該國時，關稅風險也較低。

So some of the tubes that we don't make there, we're now also accelerating the process of making there. So our customers have many choices. They know that we've given them road maps and they know some of these are coming.

因此，對於一些我們無法在那裡生產的管子，我們現在也正在加快在那裡的生產過程。因此我們的客戶有很多選擇。他們知道我們已經為他們提供了路線圖，並且他們知道其中一些即將實現。

And on top of that, as they look at the trade discussions that are all the buzz around what might be happening, what could be happening, they're all waiting to see if time is -- they feel like time is on their side. They'd rather, if they can pause and delay a little bit, they're better off doing that.

除此之外，當他們看到貿易討論中關於可能發生的事情和可能發生的事情的熱議時，他們都在等待，看看時間是否——他們覺得時間站在他們這邊。他們寧願，如果他們能夠暫停並延遲一點，那麼他們最好這樣做。

They're buying what they absolutely need, and that's what they're doing right now. Absolutely doesn't -- if they've depleted their inventory, field inventory, then they need to replenish that. That's what they're doing. But if they have inventory, they're just holding off.

他們購買他們絕對需要的東西，這就是他們現在正在做的事情。絕對不是——如果他們已經耗盡了庫存、現場庫存，那麼他們就需要補充。這就是他們正在做的事情。但如果他們有庫存，他們就只是推遲購買。

Now, we haven't stopped producing since we have frame orders from them, we haven't stopped producing. So we will make those and when they ask for ship, give a shipment dates, we will resume shipments.

現在，我們還沒有停止生產，因為我們有他們的框架訂單，所以我們還沒有停止生產。因此，我們會進行這些操作，當他們要求發貨並給出裝運日期時，我們將恢復發貨。

So it doesn't sound like -- so the China revenue is basically essentially going from approximately 15% to about 5% if everything else was equal plus or minus. But it doesn't feel like that whole that reduction of two-thirds of China revenue sounds like some of it is -- it's you think it's temporary or a lot of it will come back because of several different things, reasons, right? Whether it be customers just delaying, eventually they have to come to you or some of these mitigation efforts on your behalf, I guess, right?

所以聽起來不像——如果其他所有條件都相同，那麼中國的收入基本上會從大約 15% 下降到大約 5%。但是，中國區收入減少三分之二聽起來不像是全部——您認為這只是暫時的，還是由於多種不同原因，大部分收入會回升，對嗎？我想，不管是客戶拖延，最終他們都必須來找你，或是你得採取一些緩解措施，對吧？

That's correct, Larry, in the sense that the Q3 impact we are viewing it as temporary and it's clearly temporary. And we are continuing on our side a number of initiatives so there can be a number of initiatives on our side, as well as there might be a beneficial macro environment that might happen, which may reduce the burden for the customer.

拉里，這是正確的，從某種意義上說，我們認為第三季的影響是暫時的，而且顯然是暫時的。我們正在繼續採取一系列舉措，因此我們方面可以採取一些舉措，並且可能會出現有利的宏觀環境，這可能會減輕客戶的負擔。

But we are clearly expecting this two-thirds loss of revenue in China as temporary. And I believe hopefully by the time Q4 begins around, we are able to recover this. So clearly modeling Q3 as the basis for the next four quarters, I would think that that would be a mistake at this point.

但我們顯然預期中國三分之二的收入損失只是暫時的。我相信，到第四季開始時，我們能夠恢復這一水平。因此，顯然將第三季度建模為未來四個季度的基礎，我認為目前這是一個錯誤。

Sure. And I mean, is there an opportunity without trade resolution that you, a year from now, that this will be an impact, but maybe not, certainly not as significant. But do you think it could still be -- do you think you could actually mitigate the majority of it?

當然。我的意思是，如果沒有貿易解決方案，一年後這是否會產生影響，但可能不會，肯定不會那麼重大。但您認為它仍然可能——您認為您實際上可以減輕大部分影響嗎？

That's the direction we are working towards. That's the direction we are working towards through operational strategies like localizing more, qualifying more local supply chain as well as local manufacturing.

這就是我們努力的方向。這正是我們努力的方向，透過更多本地化、更多本地供應鏈以及本地製造等營運策略來實現。

And then on top of that, we are also working on bonded warehouse or free trade zone type of a situation. And so we are working on all of these. And our focus is to essentially mitigate a lot of this for our China customers.

除此之外，我們也正在研究保稅倉庫或自由貿易區之類的情況。所以我們正在努力解決所有這些問題。我們的重點是從根本上減輕中國客戶面臨的許多問題。

And other than tariff, there is no issue. China was recovering very well for us. You can see in this last quarter compared to a year ago quarter, China recovered very well for us. So the demand was there, is there.

除了關稅以外，沒有其他問題。對我們來說，中國復甦非常好。您可以看到，與去年同期相比，上一季中國經濟復甦表現非常好。所以需求是存在的，是的。

It's just that different customers are trying different things to just get away from this, what we are calling a temporary burden. And we are very actively pursuing a few strategies to reduce this burden, mostly, based on our own efforts and with the help of our customers working with us.

只是不同的客戶會嘗試不同的方法來擺脫這種我們稱之為暫時的負擔。我們正在積極推行一些策略來減輕這種負擔，主要是基於我們自己的努力以及與我們合作的客戶的幫助。

Okay. And then just as an aside, there was this, I'm sure you guys saw this anti-dumping story in the media a few weeks back related to China and tubes and stuff that doesn't seem to have had any impact or can you comment on that at all?

好的。然後順便說一句，我相信你們幾週前在媒體上看到了與中國和管材等有關的反傾銷報道，但似乎沒有產生任何影響，或者您能對此發表評論嗎？

That investigation hasn't had an impact on our sales side in China. That investigation is, there are two parts to it. One is the general industry investigation of competitiveness of X-ray tubes and how foreign made US and India made tubes by everyone is impacting the local industry. That's one part of the investigation.

該調查並未對我們在中國的銷售產生影響。調查分為兩部分。一是針對X射線管的競爭力進行一般產業調查，以及每個人生產的美國和印度製造的外國X射線管對當地產業的影響。這是調查的一部分。

And by the way, this investigation is going to continue somewhere between 12 and 18 months. Initially, they're now 12 months, but it can take 18 months. So this will be ongoing.

順便說一下，這項調查將持續 12 至 18 個月。最初，現在是 12 個月，但可能需要 18 個月。所以這將會持續下去。

And the second one is pricing related, which is the allegation that was made by one of the startup tech companies was that some tubes that are made in India and the United States are being sold at prices, you know the word dumping mean implies that it's being sold at prices lower than what they sell for in their home countries, in the home countries. And we don't make tubes in India. We make tubes --

第二個問題與定價有關，一家新創科技公司指控稱，一些在印度和美國生產的管子以低於本國售價的價格出售，傾銷一詞意味著其在本國的售價低於本國售價。而且我們在印度不生產管子。我們製造管子--

So it can't be.

所以不可能。

And we make CT tubes in the US, but vast majority of our CT OM customers are outside the US. So anyway, we are named in it, so we're collaborating and we will, I mean, definitely, we will comply.

我們在美國生產 CT 管，但我們的絕大多數 CT OM 客戶都在美國以外。無論如何，我們都在其中，所以我們正在合作，我們肯定會遵守。

No, that'll make sense. Okay. Last question, I guess I know a lot has been made on China, but of course it's only like 15% of your business, but I guess when it goes down just dramatically. But how's just overall trends outside of China, OEM trends?

不，這很有道理。好的。最後一個問題，我知道中國市場已經取得了很大進展，但當然這只佔你們業務的 15%，但我想當它急劇下降時，情況就會好轉。但是中國以外的整體趨勢、OEM 趨勢如何？

I know we're improving. I don't know if you touched on that coming in beginning of the call that I missed, but unfortunately it looks like it's at least in the short-term going to get overshadowed. But the thing is continue to improve outside China? And is there any other tariff impact you expect other than this that you talked about?

我知道我們正在進步。我不知道您是否在電話會議開始時提到過這一點，我錯過了，但不幸的是，看起來至少在短期內它會被掩蓋。但中國以外的事情還在持續改善嗎？除了您提到的這一點之外，您還預計關稅還會產生其他影響嗎？

So, in this case there's a pause. What we saw in Q2 was that there was broad-based strength both in Medical and Industrial, and then we saw many modalities, which had been either down or flattish. Previously, oncology, fluoroscopy, they were recovering. So we saw positive effect and so that was driven by demand.

因此，在這種情況下會出現暫停。我們在第二季度看到的是，醫療和工業領域都普遍表現強勁，而其他許多領域則出現下滑或持平的現象。此前，腫瘤科、透視科都在恢復中。所以我們看到了正面的效果，這是由需求推動的。

Our orders intake -- we don't, while the backlog has grown, as you know, it's not necessarily an indicator of strength for us. We look at the order intake rate, throughout Q1 and Q2, we saw order intake rates going up. Industrial remains strong. It was continued to be strong, and we saw a lot of new orders. So really, it really at this point, it comes down to it's really China for us at this point.

我們的訂單量－雖然積壓訂單增加，但如你所知，這並不一定是我們實力的指標。我們來看看訂單接收率，在整個第一季和第二季度，我們看到訂單接收率上升。工業依然強勁。它繼續保持強勁，我們看到了很多新訂單。所以實際上，就目前情況而言，對我們來說，真正的重點還是中國。

That's fair. Okay, all right, well, at least, hopefully, we can get some resolution there and things sounds like you do have a lot of positives too. So, all right, I'll leave it at that. I appreciate it. Thanks.

這很公平。好的，好吧，至少，希望我們能夠得到一些解決方案，而且聽起來你也有很多積極的方面。那麼，好吧，我就不多說了。我很感激。謝謝。

Suraj Kalia, Oppenheimer.

蘇拉傑·卡利亞（Suraj Kalia），奧本海默。

Hi, Sunny and Sam. This is [Seamus] on for Saraj. Congrats on a strong quarter.

嗨，Sunny 和 Sam。這是 [Seamus] 為 Saraj 主持的。恭喜本季業績強勁。

I guess to start, obviously all the focus is on China and you guys are trying to mitigate supply chains and whatnot, but any updates you can give on the India plan? And I guess is there any chance that you guys could accelerate some spend to get that up and running sooner and utilize that pathway to mitigate some of these tariff impacts?

我想首先，顯然所有的焦點都在中國，你們正在努力緩解供應鏈等等，但是您能提供一些關於印度計劃的最新消息嗎？我想，你們是否有機會加快一些支出，以便盡快啟動並運行，並利用這種方式來減輕一些關稅的影響？

Yes, so our India activities and projects, they are proceeding as part of a plan. And you are absolutely right, Seamus, that we are looking at that or that operational flexibility in the factories that we are bringing up there that we can accelerate some of that to help mitigate some of these tariff-related situations.

是的，我們在印度的活動和項目正在按照計劃進行。謝默斯，你說得完全正確，我們正在研究我們在那裡建立的工廠的運作靈活性，以便我們可以加快其中的一些進程，以幫助緩解一些與關稅相關的情況。

We are also accelerating qualifying suppliers from India so that that can also help us in terms of reducing our costs of procurement, as well as localizing more over there. So definitely a tool in the tool kit, so to say, here and puts us in a better place from regionalization and tariff mitigation perspective.

我們也正在加速從印度尋找合格供應商，以便幫助我們降低採購成本，並在那裡實現更多在地化。因此，這絕對是工具包中的一個工具，可以這麼說，它讓我們從區域化和關稅減免的角度處於更有利的地位。

Got it, appreciate that. Just kind of piggybacking on the previous question, I guess can you speak to the current environment you're seeing, like the trends you're starting to see in, you know, we saw in April and obviously the beginning of May. I guess putting some things together, you guys noticed, noted a 150- to 200-basis-point impact to your gross margin because of tariffs.

明白了，非常感謝。就像上一個問題一樣，我想您能否談談您所看到的當前環境，例如您在 4 月以及 5 月初看到的趨勢。我想，把一些因素綜合起來，你們就會注意到，關稅對你們的毛利率產生了 150 到 200 個基點的影響。

Are you guys passing on cost to customers due to the increased cost of goods sold? And are you seeing any customer wariness because of that? Are they accepting prices? It's just anything you can talk to there would be much appreciated. Thank you for taking our questions.

由於銷售成本增加，你們是否將成本轉嫁給客戶？您是否看到客戶因此而產生警覺？他們接受價格嗎？如果您能與我們討論任何事情，我們將非常感激。感謝您回答我們的問題。

Yes, so our plan is to pass along the tariff costs to our customers as tariff charges or price hikes as any which way you want to -- one may say. So that is our plan. We have been working on it in terms of figuring all of that out through our ERP system and everything else.

是的，所以我們的計劃是將關稅成本以關稅費用或價格上漲的形式轉嫁給我們的客戶，無論你希望以何種方式轉嫁——有人可能會這麼說。這就是我們的計劃。我們一直在努力透過我們的 ERP 系統和其他一切來解決所有這些問題。

We have started to charge our customers already for the tariffs for which we are -- the tariffs that we are experiencing in the last week or so. So essentially, that is our strategy is to pass tariff dollars to our customers.

我們已經開始向客戶收取我們所承擔的關稅——也就是過去一周左右我們所經歷的關稅。所以本質上，我們的策略就是將關稅轉嫁給我們的客戶。

One thing I would say is that our plan is to not do markups on the tariff. We are basically looking at tariff dollars and then charge it to our customers and so charge the customers what we pay in terms of tariffs.

我想說的是，我們的計劃是不提高關稅。我們基本上關注關稅金額，然後向我們的客戶收取費用，並以關稅的形式向客戶收取我們支付的費用。

So we are working with our customers. With some of our large customers we are having a back-and-forth type of a discussion as we speak, but that is our strategy in terms of passing the tariffs to our customers.

所以我們正在與客戶合作。我們正在與一些大客戶進行反覆討論，但這是我們將關稅轉嫁給客戶的策略。

Thank you.

謝謝。

James Sidoti, Sidoti & Company.

詹姆斯·西多蒂（James Sidoti），西多蒂公司。

Hey guys, this is Alex on for Jim. Thanks for taking questions. Yeah, I don't have Jim in the flat, but yeah. I know we've covered China and the tariffs fairly well. I just had one quick follow up, on the Industrials business, is there an impact to tariffs that you're anticipating? I know it's smaller than the Medical business in China.

嘿，大家好，我是 Alex，代表 Jim。感謝您的提問。是的，我的公寓裡沒有吉姆，但是的。我知道我們已經相當詳細地報道了中國和關稅問題。我只是想快速跟進工業業務，您預計關稅會受到影響嗎？我知道它比中國的醫療業務規模還要小。

Yes, there is definitely an impact of tariffs on Industrial business also. In Industrial business, we sell industrial detectors, industrial tubes, linear accelerators, and of course, we talked about cargo systems. So in all of those products and in their production and raw materials sourcing, something or the other that we are buying from vendors outside of the United States.

是的，關稅肯定也會對工業企業產生影響。在工業業務中，我們銷售工業探測器、工業管、直線加速器，當然，我們也談到了貨物系統。因此，在所有這些產品及其生產和原材料採購中，我們都是從美國以外的供應商那裡購買一些東西。

So there is an impact of that in terms of cost side of the equation. Our sales of our Industrial products into China is very small. So the China retaliator -- China tariffs onto US goods is not at all a major area of discussion for us.

因此，從成本角度來看，這會產生影響。我們的工業產品對中國的銷售非常小。因此，中國的報復——中國對美國商品徵收關稅根本不是我們討論的主要內容。

But on the cost side, product coming in from Germany, Austria, UK, et cetera, coming into the US is definitely there and it increases our cost. And there also, our plan is to pass costs related to these tariffs to our customers.

但在成本方面，來自德國、奧地利、英國等國的產品肯定會進入美國，這會增加我們的成本。而且，我們的計劃是將與這些關稅相關的成本轉嫁給我們的客戶。

Great, thank you for the context. And are you hearing anything -- you've mentioned some of the local lobbying efforts. Do you think that's more likely to result in exemptions on the Medical side, or no preferences on either side yet?

太好了，謝謝你提供的背景資訊。您聽到什麼了嗎—您提到了一些當地的遊說活動。您認為這更有可能導致醫療上的豁免，還是雙方都沒有任何偏好？

No, it's to be determined. Our customers in China don't have an indication whether they will get exemptions or not. There have been exemptions given to several different industries and categories of products.

不，這還有待確定。我們在中國的客戶不知道他們是否會獲得豁免。一些不同行業和產品類別已獲得豁免。

Unlike in the US where it's openly announced, I think these are more subtle. But at this point in time, the X-ray CT products are not in that list yet, but our customers, they've received exemptions in the past and they're certainly going to try and they are doing that.

與美國公開宣布不同，我認為這些措施更為微妙。但目前，X 光 CT 產品尚未列入該名單，但我們的客戶過去曾獲得豁免，他們肯定會嘗試，而且他們正在這樣做。

Understood. One more from us. I know you spoke about using cash towards those convertible notes. Could you talk a little bit about how you anticipate annual net interest expense falling out, after paying down those notes?

明白了。我們再說一個。我知道您談到了使用現金購買那些可轉換票據。您能否談談，在償還這些票據後，您預計年度淨利息支出將如何下降？

Sure, so annual interest expense, once the convertible notes are paid out, they are going to be in the $29 million range, $29 million to $30 million on a go-forward annualized basis interest expense. Our debt would be close to $370 million once we pay down the convertible notes.

當然，一旦可轉換票據支付完畢，年度利息支出將在 2,900 萬美元左右，以年度化利息支出計算，將在 2,900 萬至 3,000 萬美元之間。一旦我們償還可轉換債券，我們的債務將接近 3.7 億美元。

Great. Thank you again for taking questions.

偉大的。再次感謝您回答問題。

Anderson Shook, B. Riley Securities.

安德森·舒克 (Anderson Shook)，B. Riley 證券。

Hi, this is Brandon Carney on for Anderson. Thanks for taking our questions. I just wanted to know, if we get any near-term relief on the tariffs, would you expect that to have an immediate impact on your China outlook or would that take some time to ramp back up?

大家好，我是安德森的布蘭登卡尼 (Brandon Carney)。感謝您回答我們的問題。我只是想知道，如果我們在短期內獲得關稅減免，您是否認為這會對您的中國前景產生直接影響，還是需要一段時間才能恢復？

I think we should see -- if it's near-term as in gives us enough time in the quarter to get product back to customers. We could see some pretty immediate pull in, so to say, and that's why I made a comment earlier we haven't stopped production. Production's moving on. We're making sure that we are preparing ourselves to be able to pivot.

我認為我們應該看看——如果它是短期的，那麼我們在本季度是否有足夠的時間將產品返還給客戶。可以這麼說，我們可以看到一些相當直接的吸引力，這就是為什麼我之前說我們還沒有停止生產。生產仍在繼續。我們正在確保自己已經做好準備，能夠做出轉變。

Now, if that happens the last two weeks of the quarter then we'll be out of luck. But if it happens in the next two weeks and that still gives us all of June, we'll be able to pull some in. But we've lost a month, right? So that's hard to recover from.

現在，如果這種情況發生在本季的最後兩週，那麼我們就倒楣了。但如果它在接下來的兩週內發生並且仍然給我們整個六月的時間，我們將能夠吸引一些。但我們已經損失了一個月的時間了，對吧？所以很難恢復。

Right. Okay, and then it sounds to me like just given the assumption that the current levels stay where they at, the mitigation come into play in the next few quarters and you expect to ramp up anyway off of that $10 million number. Wondering, how the cadence on that is going to be, is it going to be more towards the back half of the fiscal year or is it going to be more evenly spaced for the recovery day?

正確的。好的，那麼在我看來，只要假設當前水平保持不變，緩解措施就會在接下來的幾個季度發揮作用，並且您預計無論如何都會從 1000 萬美元的數字上增加。想知道，這個節奏將會如何，是更多地集中在財政年度的後半段，還是會更均勻地分佈在復甦日？

So Brandon, there are two ways to answer your question. One is based on our own efforts in which we are making some operational strategies so that the tariff burden on the customer in China is minimized. If we are successful in terms of executing as per our plan, then we are expecting that to be completed by the end of Q3.

布蘭登，有兩種方式可以回答你的問題。一是依靠我們自身的努力，制定一些營運策略，盡量減少中國客戶的關稅負擔。如果我們按照計劃成功執行，那麼我們預計將在第三季末完成。

Obviously, there are still some steps to do and not everything can be pinpointed with 100% accuracy in terms of looking into the future here, but there can be some plus minus in terms of a few weeks on that window. But that's what we are working on.

顯然，還有一些步驟要做，而且從展望未來的角度來看，並非所有事情都能 100% 準確地確定，但就這個窗口期的幾周而言，可能會有一些加減效果。但這正是我們正在努力的事情。

So if such a thing happens and provided there is no other impact on the macro side in China or anywhere else, then we should see recovery starting from Q4. So that's one way to look at it.

因此，如果發生這種情況，並且假設對中國或其他任何地方的宏觀經濟沒有其他影響，那麼我們應該會看到從第四季度開始的復甦。這是一種看待這個問題的方式。

The other way to look at it is that we are not successful and then we are trying some other strategies. We have a plan A and a Plan B. In our plan B, it might take into the following quarter, so that way, that strategy may play out in that regard.

另一種看法是，我們沒有成功，所以我們正在嘗試一些其他策略。我們有 A 計劃和 B 計劃。在我們的 B 計畫中，它可能會延續到下一季度，這樣，策略就可能發揮作用。

And while we are talking all of the strategies that we are pursuing, the broader world keeps on moving, right, in terms of the macro situation, et cetera. So it's hard to pinpoint, but, hopefully, this color gives you an idea about how we are going about it.

當我們談論我們正在推行的所有策略時，更廣闊的世界也在不斷變化，就宏觀形勢等等而言。所以很難確定，但希望這個顏色能讓你了解我們是如何做到的。

All right, that's very helpful. Thanks. And then maybe just turning again to the inspection business. It's great to see the $25 million order this quarter. I think you mentioned in the past that you expect that business to be margin accretive once it gets to $10 million to $15 million per quarter. With the $14 million last quarter and the $25 million this quarter, do you have any update on timelines and when you expect to reach that $10 million to $15 million level?

好的，這非常有幫助。謝謝。然後也許再轉向檢查業務。很高興看到本季有 2500 萬美元的訂單。我記得您之前提到過，您預計一旦業務每季達到 1000 萬至 1500 萬美元，利潤就會增加。上個季度的銷售額為 1400 萬美元，本季的銷售額為 2500 萬美元，您是否有任何時間表更新以及預計何時能達到 1000 萬至 1500 萬美元的水平？

So I just want to highlight that those are orders, those orders, so for example, the $25 million is related to a number of machines, a number of units. And these units are going to ship at some sort of a cadence, call it one unit a quarter, two units a quarter, and there is also a lead time before we begin to ship them.

所以我只想強調那些是訂單，那些訂單，例如，2500 萬美元與一些機器、一些單位有關。這些單位將按照一定的節奏發貨，例如每季度一個單位，每季度兩個單位，並且在我們開始發貨之前還需要一段時間。

So there is still some time in the sense we may begin to see, say, in the coming quarter $1 million of revenue from it and in the following quarter $2 million or $3 million of revenue from it, even though the backlog would say $25 million and $14 million or so, say, close to $40 million in backlog, but it's going to take its time.

因此，從某種意義上來說，我們可能還需要一些時間才能開始看到，比如說，在下個季度，我們能從中獲得 100 萬美元的收入，在再下一個季度，我們能從中獲得 200 萬或 300 萬美元的收入，儘管積壓訂單大約為 2500 萬美元和 1400 萬美元。

And the margin accretiveness of that business comes into play when sufficient number of machines have shipped. And they have been in the field for 18 months or so, so that they go from warranty into what we call service contract or billable service or time and material service.

當有足夠數量的機器出貨時，該業務的利潤增值就會發揮作用。他們已經在該領域工作了 18 個月左右，從保固期過渡到了我們所說的服務合約或計費服務或時間和材料服務。

So we are still quite some time away from that side of the business becoming margin accretive. I would say we are at least two years away.

因此，我們距離該業務的利潤成長還有相當長一段時間。我想說我們至少還需要兩年的時間。

Got you. Thanks, that's helpful. Yeah, thanks for taking our questions.

明白了。謝謝，這很有幫助。是的，感謝您回答我們的問題。

[Faroth Prasad, Marshall Waves].

[法羅斯·普拉薩德，馬歇爾波浪]。

So the 150 basis points to 250 basis points gross margin impact that you talked about, how much of that is from countries excluding China and how much is China? I'm just trying to figure out if China tariffs go down to 50% next week or something like that, and other countries over time go up to 20%. Does your gross margin impact go up or down?

那麼，您談到的 150 個基點到 250 個基點的毛利率影響，其中有多少來自中國以外的國家，又有多少來自中國？我只是想知道下週中國的關稅是否會降至 50% 左右，而其他國家的關稅是否會逐漸上升至 20%。您的毛利率影響是上升還是下降？

Sure, so, I don't have that map right away, but you can get to that map. We said that 17% of our cost of goods sold comes from vendors outside of US, ex-China, and 3% of the cost of goods comes from vendors in China into the US. So you can see, you can do that math.

當然，我現在沒有那張地圖，但你可以拿到那張地圖。我們表示，我們銷售成本的 17% 來自美國以外的供應商（不包括中國），而 3% 的銷售成本來自中國進入美國的供應商。所以你可以看到，你可以做這個數學題。

Then the second piece, the piece that we did talk about, but mostly in qualitative manner, is that we are planning to pass the tariff increases that we receive from our vendors in terms of import duties that we pay to the government here, to pass it on to the customers. So in one way, we are not marking up the tariffs, but we are planning to charge the tariff dollars from our suppliers or from our importation basis over to our customers.

然後是第二部分，我們確實談論過的部分，但主要是以定性的方式，那就是我們計劃將從供應商那裡收到的進口關稅增加轉嫁給客戶，這些關稅是我們向政府支付的。因此，從某種程度上來說，我們不會提高關稅，但我們計劃從供應商或進口基礎中向客戶收取關稅。

So because there's no markup, there is an impact on gross margin. But I know I'm giving you some math, not the 100% math, but this is what we are able to share at this point.

因此，由於沒有加價，毛利率就會受到影響。但我知道我給你的是一些數學知識，不是 100% 的數學知識，但這是我們目前能夠分享的。

That's very helpful, and that kind of gives me my answer that the ex-China tariffs are more important for your gross margin impact than the China tariffs. And then the orders that obviously are paused at this moment, and on the retaliatory tariffs.

這非常有幫助，這也讓我知道，中國以外的關稅對你的毛利率的影響比中國關稅更重要。然後是目前顯然暫停的命令以及報復性關稅。

Assuming that there are some element of retaliatory tariffs that remain, let's just say 50%, 25%, how will that be shared between your Chinese customer and you, or will you be -- should we be thinking about a similar absorption on your end as you are thinking on the US side?

假設仍有一些報復性關稅，比如說 50%、25%，那麼這些關稅將如何在您的中國客戶和您之間分擔，或者您——我們是否應該考慮在您這邊進行類似的吸收，就像您在美國方面所考慮的那樣？

So from an economic perspective that obviously reduces the burden on our customers as the tariff rate by China onto the US products reduces. Because this is mostly a theoretical question at this point, we don't have a very specific answer, but I would just say broadly, that our cadence and our position right now with all of our customers is that we are going to pass the tariffs on to our customers to the best of our ability.

因此，從經濟角度來看，隨著中國對美國產品徵收的關稅降低，這顯然減輕了我們客戶的負擔。因為目前這主要是一個理論問題，我們沒有非常具體的答案，但我只能籠統地說，我們目前對所有客戶的節奏和立場是，我們將盡最大努力將關稅轉嫁給我們的客戶。

And right now, we're targeting to pass near all of the tariffs to our customers. So in your question, there will be a point at which it would not make sense for our customers to pay that type of tariff and buy our products. So in that situation, sales might get impacted and we are cognizant of that.

目前，我們的目標是將幾乎所有的關稅轉嫁給我們的客戶。所以，正如您所問，在某種程度上，我們的客戶支付這種關稅併購買我們的產品是沒有意義的。因此，在這種情況下，銷售可能會受到影響，我們意識到了這一點。

And that's why we are trying to localize manufacturing and come up with manufacturing strategies that we significantly reduce the tariff burden on our customers so that they can pay these tariff dollars to us so that we are unimpacted. And the impact on our customers is minuscule or small or something that they can absorb quite easily.

這就是為什麼我們試圖實現在地化製造並制定製造策略，以大幅降低客戶的關稅負擔，以便他們可以向我們支付這些關稅，從而讓我們不受影響。這對我們的客戶的影響微乎其微，或者說他們可以輕鬆承受。

Got it. Okay.

知道了。好的。

That our drop at least at this time, yeah.

是的，至少目前是這樣。

Got it. And my last question, you disclose in the 10-Q that the extra tube sales into China are roughly 10% of your sales on which obviously there's that Comm investigation. Is that 10%, all of that coming from US, is that right?

知道了。我的最後一個問題，您在 10-Q 報告中揭露，銷往中國的額外軟管銷售額約佔您銷售額的 10%，這顯然與商務部調查有關。這 10% 全部來自美國，對嗎？

So our sales to China as a company are about 15% to 17%. Tubes are not all tubes and recent detectors, and tubes, and a few other industrial products into China.

因此，我們公司對中國的銷售額約為 15% 至 17%。電子管並不是全部都是電子管，近期還有探測器、電子管等少數工業產品進入中國。

Roughly what we sell from US into China and then what we produce in China and other countries in the world into China is 50/50. So US into China is 50% of our overall China sales. I would say roughly 40% is made in China and 10% is from Europe or Philippines or whatnot into China.

大致來說，我們從美國銷售到中國的產品與我們在中國和世界其他國家生產到中國的產品的比例是50/50。因此，美國對華銷售額占我們中國總銷售額的 50%。我想說大約 40% 是在中國製造的，10% 是從歐洲或菲律賓等地進口到中國的。

Got it. Okay. Okay, this is very helpful. Thank you very much.

知道了。好的。好的，這非常有幫助。非常感謝。

There are no further questions at this time. I'd like to pass the call back over to Chris for any closing remarks.

目前沒有其他問題。我想將電話轉回給克里斯，讓他做最後的總結演講。

Thank you for your questions and participating in our earnings conference call today. The webcast and supplemental slide presentation will be archived on our website. The replay of the quarterly conference call will be available through May 22 and can be accessed at vareximaging.com/investor relations. Thank you and goodbye.

感謝您的提問並參加我們今天的收益電話會議。網路廣播和補充幻燈片簡報將存檔在我們的網站上。季度電話會議的重播將持續到 5 月 22 日，可透過 vareximaging.com/investor relations 存取。謝謝，再見。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。