Varex Imaging Corp (VREX) 2021 Q4 法說會逐字稿

Greetings. Welcome to the Varex Fourth Quarter 2021 Earnings Conference Call. (Operator Instructions)

問候。歡迎參加 Varex 2021 年第四季財報電話會議。（操作員說明）

I will now turn the conference over to your host, Chris Belfiore, Director of Investor Relations. You may begin.

現在我將會議轉交給東道主投資者關係總監 Chris Belfiore。你可以開始了。

Good afternoon, and welcome to Varex Imaging Corporation's earnings conference call for the fourth quarter of fiscal year 2021. 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 2021 財年第四季財報電話會議。今天與我在一起的有我們的總裁兼執行長桑尼桑亞爾 (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 on our Varex's website at investors.vareximaging.com. The webcast and supplemental slide presentation will be archived on Varex's website.

請注意，本次電話會議的網路直播包括補充幻燈片演示，您可以在我們的 Varex 網站 Investors.vareximaging.com 上存取該演示。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 2021. In addition, unless otherwise stated, quarterly comparisons are made sequentially from the fourth quarter of fiscal year 2021 to the third quarter of fiscal year 2021, rather than 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，所有提及該季度的數據均指 2021 財年第四季。此外，除非另有說明，季度比較是從2021財年第四季到2021財年第三季依序進行的，而不是去年同季。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. Additional information concerning factors that could cause actual results to materially differ from those anticipated is contained in the -- 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.

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。與我們業務相關的風險在我們的季度收益發布以及我們向 SEC 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，包括第 1A 項、表格 10-Q 季度報告的風險因素以及表格 10-K 年度報告。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 provide 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. Fiscal 2021 was an outstanding year for Varex despite what turned out to be a very challenging and dynamic environment. As we entered the year, uncertainty around the ongoing effects of COVID were top of mind. Pent-up demand and an increase in focus by many countries around the world on expanding their healthcare delivery capabilities has increased the demand for diagnostic imaging systems. As the year progressed, this increased demand was met with supply chain constraints that challenged both our output levels and our profitability. That said, we continue to execute on our strategic initiatives, improving gross margin, reducing operating expenses and inventory, and introducing new products and technology to drive future growth and profitability.

謝謝克里斯，大家下午好。2021 財年對 Varex 來說是出色的一年，儘管事實證明這是一個充滿挑戰和充滿活力的環境。進入新的一年，新冠疫情持續影響的不確定性成為首要考慮因素。被壓抑的需求以及世界許多國家對擴大醫療保健服務能力的關注增加，增加了對診斷影像系統的需求。隨著時間的推移，需求的增加遇到了供應鏈的限制，這對我們的產量水準和獲利能力提出了挑戰。也就是說，我們將繼續執行我們的策略性舉措，提高毛利率，減少營運費用和庫存，並推出新產品和技術，以推動未來的成長和獲利能力。

Turning to the fourth quarter, I'm excited to report a strong finish to the year. Broad-based strength globally, especially in our Medical segment, drove record quarterly revenues of $226 million in the fourth quarter. Profitability improved in the quarter, driven by strong growth and stable operating expenses. Improved earnings and working capital management helped drive robust cash generation. Cash flow from operations was $51 million in the quarter, and the cash balance at the end of the year was $145 million.

談到第四季度，我很高興地報告今年的強勁業績。全球基礎廣泛的實力，尤其是我們的醫療領域，推動第四季營收達到創紀錄的 2.26 億美元。在強勁成長和穩定營運費用的推動下，本季獲利能力有所改善。獲利和營運資金管理的改善有助於推動強勁的現金產生。本季營運現金流為 5,100 萬美元，年末現金餘額為 1.45 億美元。

Global demand for CT tubes remained strong in the quarter as did demand for detectors in both Medical and Industrial applications. While the third quarter marked a return to pre-COVID levels or better for many medical modalities, I'm pleased to say that the fourth quarter saw all modalities above pre-COVID levels. Our revenues in the fourth quarter increased 7% sequentially, and 33% year-over-year, with both Medical and Industrial segments showing strong growth.

本季全球對 CT 管的需求依然強勁，醫療和工業應用中對探測器的需求也保持強勁。雖然第三季標誌著許多醫療方式恢復到新冠疫情前的水平或更好，但我很高興地說，第四季度所有醫療方式都高於新冠疫情前的水平。我們第四季的營收季增 7%，年增 33%，醫療和工業領域均呈現強勁成長。

Non-GAAP gross margins in the quarter were 34%, as strong volumes were partially offset by supply chain challenges. Non-GAAP operating margin was 14% of revenues, and non-GAAP EPS of $0.45 exceeded the top end of our guidance range.

本季非 GAAP 毛利率為 34%，強勁的銷售量被供應鏈挑戰部分抵銷。非 GAAP 營業利潤率為收入的 14%，非 GAAP 每股收益為 0.45 美元，超出了我們指導範圍的上限。

Let me give you some high-level insight into how our different modalities and applications trended during the quarter. Medical segment revenues increased 8% sequentially, and 33% year-over-year. We continue to see (technical difficulty) globally for CT tubes in the fourth quarter. In our other medical modalities, oncology, radiographic, dental and mammography posted sequential growth, and were above pre-COVID levels. Fluoro was somewhat flat in the quarter due to timing of shipments.

讓我向您介紹本季我們不同模式和應用程式的趨勢。醫療部門營收季增 8%，年增 33%。我們在第四季度繼續看到全球 CT 管的（技術困難）。在我們的其他醫療模式中，腫瘤學、放射學、牙科和乳房X光檢查連續成長，並且高於新冠疫情前的水平。由於發貨時間的原因，Fluoro 在本季度的表現有些持平。

Revenues in our Industrial segment increased 4% sequentially, and 34% year-over-year. During the quarter, demand for digital detectors for non-destructive inspection remained strong in several of our industrial verticals, including battery inspection and oil and gas. Demand for imaging products for security screening at ports and borders, as well as baggage screening at airports continued to be soft, but both remain headed in a more positive direction.

工業部門的營收季增 4%，年增 34%。本季度，我們的幾個工業垂直領域（包括電池檢查以及石油和天然氣）對用於無損檢測的數位探測器的需求仍然強勁。用於港口和邊境安全檢查以及機場行李檢查的成像產品的需求持續疲軟，但仍朝著更積極的方向發展。

As we have done in the past, I would like to highlight the outstanding work we're doing in one of our businesses. At Varex, our mission is to make the invisible visible, and our AI-aided software is strategic to that mission. This software will be on display at RSNA in a few weeks, along with other products such as photon counting detectors, nanotubes, Z Platform detectors, and our new LUMEN detectors.

正如我們過去所做的那樣，我想強調我們在一項業務中所做的出色工作。在 Varex，我們的使命是讓不可見變得可見，而我們的人工智慧輔助軟體對於實現這項使命具有戰略意義。該軟體將在幾週後在 RSNA 上與其他產品一起展出，例如光子計數探測器、奈米管、Z 平台探測器和我們的新型 LUMEN 探測器。

Our software business represented over $30 million in revenue in fiscal year 2021. As imaging becomes more accessible globally and efficient workflow becomes more critical, we're excited about the growth potential that AI-aided software represents. Actually, AI-aided software leverages our more than a decade of field-based experience with software for image analysis and computer-aided detection that is installed on thousands of diagnostic workstations globally. We have been able to apply these competencies for developing AI-aided software for breast, lung, neuro and liver imaging, and we expect to continue this development across various other imaging modalities. With an increasing focus on connectivity and integration, we're happy to be able to offer the software via the cloud.

我們的軟體業務在 2021 財年的收入超過 3,000 萬美元。隨著影像在全球變得越來越容易使用，高效的工作流程變得越來越重要，我們對人工智慧輔助軟體所代表的成長潛力感到興奮。實際上，人工智慧輔助軟體利用了我們十多年的影像分析和電腦輔助檢測軟體現場經驗，這些軟體安裝在全球數千個診斷工作站上。我們已經能夠應用這些能力來開發用於乳房、肺部、神經和肝臟成像的人工智慧輔助軟體，並且我們期望在各種其他成像模式中繼續這種開發。隨著人們對連接性和整合的日益關注，我們很高興能夠透過雲端提供該軟體。

Our AI-aided lung screening software called Veolity is setting new standards in the industry as a trusted diagnostic platform for high throughput environments. With an increased focus on lung screening globally, we think Veolity has the potential to become a significant contributor to our software growth. We have been participating in tenders globally, and recently, we won a tender to provide lung screening software for 9 hospitals in the province of British Columbia and Canada. We expect this win and other projects won in Europe and the United Kingdom to help drive broader adoption of Veolity over time.

我們的人工智慧輔助肺部篩檢軟體 Veolity 正在為業界設定新標準，成為高通量環境下值得信賴的診斷平台。隨著全球對肺部篩檢的關注日益增加，我們認為 Veolity 有潛力成為我們軟體成長的重要貢獻者。我們一直在全球範圍內參與招標，最近，我們贏得了為不列顛哥倫比亞省和加拿大的 9 家醫院提供肺部篩檢軟體的招標。我們預計這場勝利以及在歐洲和英國贏得的其他項目將有助於隨著時間的推移推動 Veolity 的更廣泛採用。

In the U.S. alone, there are over 200,000 lung cancer cases and over 60,000 deaths from lung cancer each year. A high mortality rate of about 19% is mainly late diagnosis of lung cancer, catching the disease at a point where it's often too late to treat effectively. However, over the last few years, global and national recommendations have encouraged early lung cancer screening using low dose CT among more high-risk groups. In the U.S., this could potentially increase the number of persons eligible for screening from about 6 million to nearly 15 million. With other regions like Europe, Canada and Asia following suit, we expect this expansion of lung cancer screening to continue to grow. This expansion will require productivity-enhancing software that supports effective high-volume screening. This is a key capability and the strength of Veolity.

光是在美國，每年就有超過 20 萬例肺癌病例，超過 6 萬人死於肺癌。約 19% 的高死亡率主要是由於肺癌診斷較晚，發現這種疾病時往往為時已晚，無法進行有效治療。然而，在過去幾年中，全球和國家建議鼓勵在高風險族群中使用低劑量 CT 進行早期肺癌篩檢。在美國，這可能會使符合篩檢資格的人數從約 600 萬人增加到近 1,500 萬人。隨著歐洲、加拿大和亞洲等其他地區的跟進，我們預計肺癌篩檢的擴大將繼續成長。這種擴展將需要支援有效大容量篩選的提高生產力的軟體。這是 Veolity 的關鍵功能和優勢。

Our Veolity AI-aided software can enhance radiologist productivity by enabling them to perform CT lung screening quickly and with AI oversight for added diagnostic confidence. This software offers automated workflow with historical comparisons and 3D volume measurement capabilities that tracks the progress of a tumor over time, and can help with early detection of cancer. Over the last 5 years, Varex has licensed over 570 instances of Veolity across the Americas, Europe and Asia.

我們的 Veolity 人工智慧輔助軟體可以提高放射科醫生的工作效率，使他們能夠快速執行 CT 肺部篩檢，並透過人工智慧監督來增加診斷信心。該軟體提供具有歷史比較和 3D 體積測量功能的自動化工作流程，可追蹤腫瘤隨時間的進展，並有助於早期發現癌症。在過去 5 年裡，Varex 已在美洲、歐洲和亞洲授權了 570 多個 Veolity 實例。

The global lung cancer screening market is expected to grow at 20% CAGR from a base of approximately $20 million in calendar 2021, and we expect to benefit from this market growth. We are excited about the possibilities that AI-aided software can bring to the imaging world, and proud that Varex is an innovator in this space. As we expand our AI-aided software capabilities into other applications, we expect this business to become a larger contributor to Varex in the future.

預計到 2021 年，全球肺癌篩檢市場將從約 2,000 萬美元的基礎上以 20% 的複合年增長率成長，我們預計將從這一市場成長中受益。我們對人工智慧輔助軟體為成像世界帶來的可能性感到興奮，並為 Varex 成為該領域的創新者感到自豪。隨著我們將人工智慧輔助軟體功能擴展到其他應用程序，我們預計該業務未來將成為 Varex 的更大貢獻者。

Before I hand over the call to Sam, I'd like to take a minute to reflect on the past year. As noted earlier, fiscal 2021 was a record year for Varex across the board. [Increased] demand drove our business to new levels. Looking back to a strong period before COVID, revenue was up 5% from fiscal 2019 to $818 million in 2021, while adjusted EBITDA was up 15% to $133 million. This translates to nearly 50% incremental margin, an outstanding accomplishment from a (technical difficulty) considered to be very strong at a time. This increase includes the results from the first quarter of fiscal 2021, which was still significantly impacted by the effects of COVID.

在將電話轉交給 Sam 之前，我想花一點時間回顧過去的一年。如前所述，2021 財年對 Varex 來說是創紀錄的一年。[增加]需求將我們的業務推向了新的水平。回顧新冠疫情之前的強勁時期，2021 年營收較 2019 財年成長 5%，達到 8.18 億美元，調整後 EBITDA 成長 15%，達到 1.33 億美元。這意味著近 50% 的增量利潤，這是被認為非常強大的（技術難度）的傑出成就。這一增長包括 2021 財年第一季的業績，該季度仍受到新冠肺炎疫情的嚴重影響。

As we all know, the strong results exiting fiscal '19 were met with significant headwinds from COVID, but the actions that we took to bolster our financial position helped us recover to an even stronger position. Robust demand drove revenue growth of over 30% from the low point in the fourth quarter of 2020 to $226 million in the fourth quarter of 2021, while adjusted EBITDA grew 10x to $40 million. This strong sequential quarterly improvement culminated in record revenue of $818 million in fiscal 2021. This revenue, along with continued expense management, led to gross margins of 34.7% in fiscal 2021, while adjusted EBITDA improved to $133 million, and EPS finished the year at $1.31. During this period, global CT volumes increased double digits.

眾所周知，19 財年的強勁業績受到了新冠疫情的巨大阻力，但我們為鞏固財務狀況而採取的行動幫助我們恢復到了更強大的地位。強勁的需求推動營收成長超過 30%，從 2020 年第四季的低點成長至 2021 年第四季的 2.26 億美元，而調整後的 EBITDA 成長了 10 倍，達到 4,000 萬美元。這一強勁的季度環比改善最終導致 2021 財年收入達到創紀錄的 8.18 億美元。這筆收入加上持續的費用管理，使 2021 財年的毛利率達到 34.7%，調整後的 EBITDA 提高至 1.33 億美元，全年每股收益為 1.31 美元。在此期間，全球 CT 數量增加了兩位數。

In fiscal 2021, we generated record operating cash flow of $93 million, and our cash balance ended the year at $145 million, even after paying down $30 million of our debt in July.

2021 財年，我們的營運現金流達到創紀錄的 9,300 萬美元，即使在 7 月償還了 3,000 萬美元的債務後，我們的現金餘額在年底仍達到 1.45 億美元。

I'd like to take a moment to recognize all our employees, customers and suppliers globally, who are continuing to weather a very difficult environment and meeting elevated demand levels through significant supply chain challenges. Fiscal 2021 set a strong foundation for us to build upon. As we move into 2022, demand remains strong, the supply (technical difficulty) and we're confident in our ability to deliver quality products to our customers.

我想花點時間向我們在全球的所有員工、客戶和供應商表示認可，他們繼續應對非常困難的環境，並透過重大的供應鏈挑戰滿足不斷提高的需求水準。2021 財年為我們的發展奠定了堅實的基礎。進入 2022 年，需求依然強勁，供應（技術難度）依然強勁，我們對向客戶提供優質產品的能力充滿信心。

While we expect COVID and supply chain issues to remain part of our business environment during fiscal 2022, we are steadfastly maintaining our focus on Varex 2.0 and the long term. The focus of that journey is centered around expanding our leadership position through innovation and continued focus on improving profitability. Our fiscal 2022 expenses include fully funding several R&D initiatives that we will expect to drive future growth.

雖然我們預計新冠肺炎和供應鏈問題在 2022 財年仍將是我們業務環境的一部分，但我們將堅定不移地關注 Varex 2.0 和長期發展。這趟旅程的重點是透過創新擴大我們的領導地位，並持續專注於提高獲利能力。我們 2022 財年的支出包括為多項研發計畫提供全額資助，我們預計這些計畫將推動未來的成長。

As we have discussed earlier, we're developing several exciting new products, such as photon counting detector for CT, a family of next-generation radiographic detectors on flexible substrate, several advanced tube models for CT and cardiovascular applications, AI-aided software and new connect and control components as well. We expect to have customer prototypes of CT photon counting detector modules available in the second quarter of our fiscal 2022. We expect that these and other innovation initiatives will expand our addressable markets and increase our position as a preferred partner for innovative technology with current and potential customers.

正如我們之前討論的，我們正在開發幾種令人興奮的新產品，例如用於CT 的光子計數探測器、柔性基板上的一系列下一代射線照相探測器、用於CT 和心血管應用的幾種先進管模型、人工智慧輔助軟體和還有新的連接和控制組件。我們預計將在 2022 財年第二季提供 CT 光子計數偵測器模組的客戶原型。我們預計這些和其他創新措施將擴大我們的潛在市場，並提高我們作為現有和潛在客戶創新技術首選合作夥伴的地位。

While our local-for-local platform in China continues to be highly successful in CT, we are now engaged with local OEMs on our innovation in X-ray tubes, detectors for applications such as cardiovascular, oncology and surgery. Our joint venture, VEC, is making steady progress with nanotube technologies, and we are at a stage in our development process where we are shipping prototypes to industrial OEMs.

雖然我們在中國的在地化平台在 CT 領域繼續取得巨大成功，但我們現在正與本地 OEM 廠商合作，共同致力於 X 光管、心血管、腫瘤和外科等應用偵測器的創新。我們的合資企業 VEC 在奈米管技術方面正在穩步取得進展，我們正處於開發過程中向工業原始設備製造商運送原型的階段。

Our continued focus on improving profitability and cash generation are driven by investments in our factory, ongoing improvements in productivity and yield, and reducing product costs through lower cost designs, vertical integration and supply chain actions. We have weathered uncertainties created by COVID so far and have come out stronger. In the same way, we expect to continue to navigate the current supply uncertainties and emerge with a more resilient supply chain globally.

我們持續專注於提高獲利能力和現金產生能力，這得益於對工廠的投資、生產力和產量的持續提高，以及透過降低成本設計、垂直整合和供應鏈行動來降低產品成本。到目前為止，我們已經度過了新冠疫情帶來的不確定性，並變得更加堅強。同樣，我們預計將繼續應對當前的供應不確定性，並在全球範圍內建立更具彈性的供應鏈。

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 2021 with those of our third quarter of fiscal year 2021. Varex continued to deliver strong results in the quarter with solid demand across all modalities. Revenue and non-GAAP EPS were higher than our guided range.

謝謝，Sunny，大家好。提醒一下，除非另有說明，我將提供 2021 財年第四季與 2021 財年第三季業績的連續比較。Varex 在本季持續取得強勁業績，所有模式的需求均強勁。收入和非公認會計準則每股收益高於我們的指導範圍。

Fourth quarter revenues were $226 million, an increase of 7% from the third quarter. Medical revenues were $181 million, and Industrial revenues were $46 million. For both Varex in total and the Medical segment, this is the highest quarterly revenue level we have posted. These revenue levels translated to 80% Medical and 20% Industrial sales. Sequentially, Medical sales grew 8% and Industrial sales grew 4%. The revenue levels in all 3 regions remained strong in the quarter. EMEA declined 2% sequentially, Americas grew 7%, and APAC grew 18%. China revenue was $112 million in fiscal year 2021.

第四季營收為2.26億美元，較第三季成長7%。醫療收入為 1.81 億美元，工業收入為 4,600 萬美元。對於 Varex 整體收入和醫療部門來說，這是我們公佈的最高季度收入水準。這些收入水準轉化為 80% 的醫療銷售額和 20% 的工業銷售額。隨後，醫療銷售額成長了 8%，工業銷售額成長了 4%。本季所有 3 個地區的營收水準仍然強勁。歐洲、中東和非洲地區較上月下降 2%，美洲地區成長 7%，亞太地區成長 18%。2021財年中國收入為1.12億美元。

Let me now cover our results on a GAAP basis. Fourth quarter gross margin was 33%, down 200 basis points from the previous quarter. Operating income of $27 million was $1 million higher than the third quarter. Net earnings declined [$9 million], compared to the previous quarter, primarily on a higher tax provision of $6 million, compared to $3 million in the prior quarter. Earnings per diluted share were $0.20 compared to $0.29 in the third quarter.

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33%，較上季下降200個基點。營業收入為 2,700 萬美元，比第三季增加 100 萬美元。與上一季相比，淨利潤下降了[900萬美元]，主要是由於稅收撥備增加了600萬美元，而上一季為300萬美元。稀釋後每股收益為 0.20 美元，而第三季為 0.29 美元。

Moving on to non-GAAP results for the quarter. Gross margin was 34%, down 200 basis points from the third quarter as higher volumes were partially offset by ongoing supply chain challenges. At the beginning of fiscal 2021, we aim to expand gross margin through cost reduction initiatives, as well as improved efficiencies in our manufacturing and service (technical difficulty). As noted earlier, in 2021, we grew our gross margins 470 basis points to 34.7% for the full year. We are very pleased with the gross margin improvement we saw in 2021, and believe it sets a solid foundation for 2022 and beyond. As we have noted in the past, we continue to expect gross margins to be 35%, plus or minus 100 basis points.

接下來是本季非公認的會計準則業績。毛利率為 34%，比第三季下降 200 個基點，因為銷售增加被持續的供應鏈挑戰部分抵消。2021財年伊始，我們的目標是透過降低成本措施以及提高製造和服務效率（技術難度）來擴大毛利率。如前所述，2021 年，我們的全年毛利率成長了 470 個基點，達到 34.7%。我們對 2021 年毛利率的改善感到非常滿意，並相信這為 2022 年及以後奠定了堅實的基礎。正如我們過去指出的，我們繼續預期毛利率為 35%，上下浮動 100 個基點。

Despite the robust demand environment during the quarter, supply chain and freight expenses impacted gross margin more than originally anticipated. Freight impacted gross margin by about 30 basis points sequentially. In addition, during the quarter, we qualified various alternate suppliers. And as a result, resources were diverted towards solving supply chain issues. For this reason, approximately $1 million of R&D was charged to cost of goods sold as compared to the third quarter of fiscal 2021. This impacted gross margin sequentially by about 50 basis points.

儘管本季需求環境強勁，但供應鏈和貨運費用對毛利率的影響超出了最初的預期。運費持續影響毛利率約 30 個基點。此外，在本季度，我們對各種替代供應商進行了資格認證。結果，資源被轉移到解決供應鏈問題。因此，與 2021 財年第三季相比，約 100 萬美元的研發費用計入銷售成本。這對毛利率造成了約 50 個基點的影響。

As we have highlighted since the second quarter, supply chain constraints largely around the freight and logistics has been a persistent headwind. These challenges became more pronounced in the fourth quarter and impacted the availability and cost of some materials used to make our products, especially semiconductors. We continue to work through these challenges with current and alternate suppliers to mitigate impact, but this has been and continues to be a dynamic environment.

正如我們自第二季以來所強調的那樣，主要圍繞貨運和物流的供應鏈限制一直是持續的阻力。這些挑戰在第四季度變得更加明顯，並影響了用於製造我們產品的某些材料（尤其是半導體）的可用性和成本。我們繼續與當前和替代供應商一起應對這些挑戰，以減輕影響，但這一直是並將繼續是一個動態的環境。

In the backdrop of such a rising input cost environment, we are working to mitigate the impact of increasing costs through expense management and price increases. In late October, we rolled out a broad-based price increase of mid-single-digit percentage or higher. Since many customers are on annual price contracts, we expect pricing adjustments to kick in gradually throughout fiscal 2022.

在投入成本不斷上升的背景下，我們正在努力透過費用管理和價格上漲來減輕成本增加的影響。十月下旬，我們全面漲價，漲幅達到中個位數百分比或更高。由於許多客戶簽訂的是年度價格合同，我們預計價格調整將在 2022 財年逐步開始。

R&D spending in the fourth quarter was $18 million, or 8% of revenues, within our 8% to 10% target range. Recall that R&D was lower by $1 million as it was redirected to cost of goods sold. SG&A was approximately $27 million in Q4, roughly in line with the prior quarter. Operating expenses were $45 million, down $1 million from the prior quarter, as explained above. Lower operating expenses helped drive an 8% increase in operating earnings from the previous quarter to $33 million. Despite (technical difficulty) margin, our operating margin held steady at 14% of revenue. Tax expense in the fourth quarter was $6 million, similar to the previous quarter.

第四季的研發支出為 1,800 萬美元，佔營收的 8%，在我們 8% 至 10% 的目標範圍內。回想一下，研發費用減少了 100 萬美元，因為它被重新導向到銷售成本。第四季的銷售、行政管理費用約為 2,700 萬美元，與上一季大致持平。如上所述，營運費用為 4,500 萬美元，比上一季減少 100 萬美元。營運費用的降低使得營運利潤比上一季成長了 8%，達到 3,300 萬美元。儘管有（技術困難）利潤率，我們的營業利潤率仍穩定在收入的 14%。第四季的稅費為 600 萬美元，與上一季相似。

Net earnings increased to $19 million or $0.45 per diluted share compared to $16 million or $0.40 per diluted share in Q3. Average diluted shares in the quarter were 41 million, compared to 39.8 million in the prior quarter. Please note that due to our convertible notes related bond hedge and the associated trading range of our shares, there is a difference between diluted shares for GAAP and non-GAAP purposes. GAAP share count ignores the bond hedge, while non-GAAP share count includes the economic benefit from the hedge. We have provided a reconciliation between the 2 at the end of our earnings press release. The appendix of our slides provide the table showing the effect of the convertible notes related bond hedge on the diluted share count for GAAP and non-GAAP purposes.

淨利潤增至 1,900 萬美元，即稀釋後每股收益 0.45 美元，而第三季淨利為 1,600 萬美元，即稀釋後每股收益 0.40 美元。本季平均稀釋後股票為 4,100 萬股，而上一季為 3,980 萬股。請注意，由於我們與可轉換票據相關的債券對沖以及我們股票的相關交易範圍，因此以公認會計原則和非公認會計原則計算的稀釋股票之間存在差異。GAAP 股票數量忽略了債券對沖，而非 GAAP 股票數量則包括了對沖帶來的經濟利益。我們在收益新聞稿的末尾提供了兩者之間的調節表。我們投影片的附錄提供了表格，顯示與可轉換票據相關的債券對沖對公認會計原則和非公認會計原則稀釋股數的影響。

Now turning to the balance sheet. Accounts receivables increased by $7 million, mainly due to higher sales in the quarter. DSO improved by 2 days to 62 days. Inventory declined $18 million, and days of inventory improved to 136 days. Accounts payables decreased by $7 million, and days payable was 36 days.

現在轉向資產負債表。應收帳款增加 700 萬美元，主要是由於本季銷售額增加。DSO 改善了 2 天，達到 62 天。庫存減少 1800 萬美元，庫存天數改善至 136 天。應付帳款減少 700 萬美元，應付帳款天數為 36 天。

Now moving on to debt and cash flow information. Cash flow from operations improved to a record $51 million, driven by improved profitability and working capital. We ended the quarter with cash of $145 million on the balance sheet, an increase of $17 million in the quarter, after paying down $30 million of debt. Gross debt outstanding at the end of the fourth quarter was $481 million, and debt net of cash, declined to $336 million, reflecting our priority to continue to delever on a net debt basis.

現在轉向債務和現金流資訊。在獲利能力和營運資本改善的推動下，營運現金流改善至創紀錄的 5,100 萬美元。本季末，我們資產負債表上的現金為 1.45 億美元，在償還了 3,000 萬美元的債務後，本季增加了 1,700 萬美元。第四季末未償債務總額為 4.81 億美元，扣除現金的債務降至 3.36 億美元，反映出我們繼續在淨債務基礎上去槓桿化的優先事項。

Adjusted EBITDA was $40 million in the fourth quarter, up $1 million from the prior quarter. Adjusted EBITDA margin was 18% in the quarter. The combination of improved profitability and our robust cash generation has helped lower our net debt leverage ratio to 2.5x at fiscal year-end. Recall, our goal was to bring our net debt leverage ratio below 3x.

第四季調整後 EBITDA 為 4,000 萬美元，比上一季增加 100 萬美元。本季調整後 EBITDA 利潤率為 18%。獲利能力的提高和強勁的現金產生能力相結合，幫助我們在財年末將淨債務槓桿率降低至 2.5 倍。回想一下，我們的目標是將淨債務槓桿率降至 3 倍以下。

Fiscal 2021 presented challenges seemingly at every turn from higher-than-anticipated demand levels, to a severely constrained supply chain, but we remained focused on our strategy to improve both capital leverage and operating leverage. To that end, I would like to thank our Varex colleagues worldwide for their tremendous efforts in staying on course and achieving these excellent results.

2021 財年似乎處處都面臨挑戰，從高於預期的需求水準到嚴重受限的供應鏈，但我們仍專注於提高資本槓桿和營運槓桿的策略。為此，我要感謝世界各地的 Varex 同事為堅持正確方向並取得這些出色的成果而付出的巨大努力。

Before providing guidance, I wanted to take a step back and discuss our revenue results for Q4 in the context of our expectations for Q1. Our Q4 results came in higher-than-expected, in part, because towards the end of Q4, we received some raw material earlier-than-planned, and consequently, were able to meet additional customer demand. The supply chain environment remains significantly unpredictable and lumpy. While Q1 demand remains strong and higher than Q4, due to supply chain constraints, we may not be able to ship all the demand in Q1 and have taken this into account when establishing our guidance.

在提供指導之前，我想退後一步，在我們對第一季的預期的背景下討論我們第四季度的收入結果。我們第四季的業績高於預期，部分原因是在第四季度末，我們比計劃提前收到了一些原材料，因此能夠滿足額外的客戶需求。供應鏈環境仍然非常不可預測且不穩定。雖然第一季的需求仍然強勁並高於第四季度，但由於供應鏈的限制，我們可能無法滿足第一季的所有需求，並且在製定指導時已考慮到這一點。

With that as a backdrop, here is our guidance for Q1. Revenues are expected between $200 million and $220 million, and non-GAAP earnings per diluted share are expected between $0.20 and $0.40. Our expectations are based on the following. Non-GAAP gross margin in a range of 34% to 35%. Please note, going forward, we expect gross margin to be an ongoing and a dynamic balance between price increases and rising costs. Non-GAAP operating expenses in the range of $45 million to $46 million, tax rate of about 23% for full fiscal year 2022, non-GAAP diluted share count of about 41 million shares for Q1, and a slightly higher CapEx of about $25 million for full fiscal 2022 to expand capacity for our tube factory, as well as complete the build-out of our new cable factory in the Philippines.

以此為背景，這是我們對第一季的指導。收入預計在 2 億美元至 2.2 億美元之間，非 GAAP 攤薄後每股收益預計在 0.20 美元至 0.40 美元之間。我們的期望基於以下幾點。非 GAAP 毛利率在 34% 至 35% 之間。請注意，展望未來，我們預計毛利率將在價格上漲和成本上漲之間保持持續的動態平衡。非 GAAP 營運費用在 4,500 萬至 4,600 萬美元之間，2022 年整個財年稅率約為 23%，第一季非 GAAP 攤薄後股數約為 4,100 萬股，資本支出略高，約 2,500 萬美元2022 財年，我們將擴大管材工廠的產能，並完成菲律賓新電纜工廠的建造。

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 is from Anthony Petrone with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Anthony Petrone。

This is Frank Pinal on for Anthony. I guess, first, congratulations on a very nice quarter again. First question, I guess, we're seeing a lot of companies touch on supply chain impacts, and you sort of touched on it with delays and pricing increases. Just sort of wondering what you're seeing as you were exiting the quarter, and how you're sort of thinking about 4Q? Maybe if you can touch on China, maybe port congestion that's impacting you? And perhaps, how long do you expect these impacts to persist? Is this going to mid-2022 to the back half or beyond?

這是安東尼的弗蘭克·皮納爾。我想，首先，恭喜您再次度過了一個非常美好的季度。第一個問題，我想，我們看到很多公司都談到了供應鏈的影響，而你們也談到了延遲和價格上漲的問題。只是想知道當您退出本季時您會看到什麼，以及您如何看待第四季度？也許您可以談談中國，也許港口擁堵正在影響您？也許，您預計這些影響會持續多久？會持續到 2022 年下半年還是更久嗎？

This is Sunny. I'll touch on -- I'll open it up. It's a pretty broad question, and I'll let Sam jump in and give the financial implications. The port congestions for us that is -- was a problem at a point in time, but we've moved away from ocean freight to airfreight for all our inbound. So from a freight perspective, the outbound costs of freight, those are handled by our customers who pick up from our doorstep. The inbound that we buy from or input materials that we buy, those come through airfreight. So we've been able to avoid the delays in congestions at seaports.

這是陽光明媚。我會談到——我會打開它。這是一個相當廣泛的問題，我會讓 Sam 介入並給予財務影響。對我們來說，港口擁堵在某個時間點是一個問題，但我們已經將所有入境貨物從海運轉向空運。所以從貨運的角度來看，出境貨運成本是由我們的客戶處理的，他們從我們家門口提貨。我們購買的入境材料或購買的輸入材料都是透過空運來的。因此，我們能夠避免海港擁堵造成的延誤。

Our supply chain issues continue to hover around the fact that materials supply from our suppliers have become very lumpy. They're unpredictable. They're lumpy. Now this is not new. It's been going on for a good solid 12-plus months now, and we're just managing through it. And it's becoming difficult because more and more of these suppliers are falling behind, but we're just managing through it. And increasingly, as Sam pointed out, we've been qualifying alternate suppliers. And this has been an ongoing dynamic situation and qualifying alternate suppliers and figuring out how to fill in the gaps, and that is continuing.

我們的供應鏈問題繼續圍繞著這樣一個事實，即我們供應商的材料供應變得非常不穩定。他們是不可預測的。它們是塊狀的。現在這並不新鮮了。這種情況已經持續了 12 個多月，而我們只是在努力渡過難關。這變得越來越困難，因為越來越多的供應商落後了，但我們只是在克服它。正如薩姆指出的那樣，我們越來越多地對替代供應商進行資格審查。這是一個持續不斷的動態情況，對替代供應商進行資格審查，並找出如何填補空白，而且這種情況仍在繼續。

Yes. And Frank, this is Sam here. Thanks, Sunny. What I can add here is more and more instead of ocean freight, we are going airfreight, and that is much more expensive, like. So sequentially, we were 30 basis points higher on freight. But as I look at our long run average, freight is running 60 basis points higher. So it is expensive. And as Sunny said, things remain lumpy and unpredictable. Sometimes stuff comes in a bit sooner and sometimes at the last moment, we would be told that it's going to be a week late or 2 weeks late or 3 weeks late, and that causes a lot of inefficiencies in terms of factory scheduling and providing or shipping the product on time. So all those issues are going through, and we are managing through it, but we are actively managing through it. But it is definitely a drain on the performance.

是的。弗蘭克，這是山姆。謝謝，桑尼。我可以在這裡補充的是，我們越來越多地選擇空運，而不是海運，這要貴得多。因此，我們的運費連續上漲了 30 個基點。但從我們的長期平均值來看，運費上漲了 60 個基點。所以它很貴。正如桑尼所說，事情仍然不穩定且不可預測。有時東西來得早一點，有時在最後一刻，我們會被告知將晚一周或晚兩週或三週，這會導致工廠調度和提供或交付方面效率低下。按時運送產品。因此，所有這些問題都在經歷，我們正在解決它，但我們正在積極地解決它。但這肯定會消耗性能。

Great. I guess the next question, if you will, if you could touch on underlying demand in China CT, also backlog, that would be great. And I have one follow-up question after that, if possible.

偉大的。我想下一個問題，如果你願意的話，如果你能觸及中國CT的潛在需求以及積壓，那就太好了。如果可以的話，我還有一個後續問題。

The demand for CT in China is continuing. I mean, it's been -- the one thing that's been steady and increasing. And it's driven by, as you know, in continued expansion of health care services in China, and the Chinese government has not let up on that. Secondly, our participation there is pretty strong because of our -- because we've got several Chinese OEMS, sage Chinese OEMs that are designing in our products that are -- that started this journey a while ago, and they're continuing to release more systems. So that continues to remain strong. The demand there is strong. And into the foreseeable future as well, we see this continuing.

中國對CT的需求仍在持續。我的意思是，這是一件一直穩定且不斷成長的事情。如你所知，這是由中國醫療保健服務的持續擴張所推動的，而中國政府並沒有放鬆這一點。其次，我們在那裡的參與相當強烈，因為我們有幾家中國原始設備製造商，明智的中國原始設備製造商正在設計我們的產品，他們不久前開始了這一旅程，並且他們正在繼續發布更多系統。因此，這種勢頭繼續保持強勁。那裡的需求很強勁。在可預見的未來，我們也看到這種情況仍在持續。

Yes. And Frank, to your question on backlog, I can add that typically, we've not provided backlog number every quarter, but it is in our 10-Q or 10-K documents. We are planning to file our 10-K in a week or so here. We've been working on it. So backlog did increase for Q4 significantly from Q3. But I just want to remind you that backlog is not necessarily a very strong part of our revenue performance. Nonetheless, backlog was significantly ahead of $300 million. It was closer to $320 million -- $327 million for us at the end of Q4 versus around $250 million, $260 million previously. But again, I want to caution you, backlog is not necessarily a predictor of future revenues for us because things can change.

是的。Frank，對於你關於積壓的問題，我可以補充一點，通常我們不會每個季度提供積壓的數量，但它在我們的 10-Q 或 10-K 文件中。我們計劃在一周左右的時間內在這裡提交 10-K。我們一直在努力。因此，第四季的積壓確實比第三季顯著增加。但我只是想提醒您，積壓訂單不一定是我們收入表現的重要組成部分。儘管如此，積壓訂單仍遠遠超過 3 億美元。在第四季末，我們的營收接近 3.2 億美元，即 3.27 億美元，而之前約為 2.5 億美元，2.6 億美元。但我想再次提醒您，積壓訂單不一定能預測我們未來的收入，因為情況可能會改變。

Great. Just one last one here. I'm just wondering if you can provide any sort of color or updates on nanotech X-ray technology, I think most people are generally excited to hear about that.

偉大的。這裡只有最後一張。我只是想知道您是否可以提供任何類型的顏色或奈米技術 X 射線技術的更新，我認為大多數人都會很高興聽到這一點。

Yes. It's a novel technology. And as you know, in our business, it takes time for introducing novel technologies in adult. And since we go through a B2B OEM channel, when we -- after we have the technology, and we feel it's ready for customer consumption and our customers start the consultative process of trying to understand what to do with this technology and how to start conceiving of applications. But we're -- I'll summarize by saying that we're -- we also continue to be excited about this technology. We have been steadily, continuously validating the technology itself and assessing the parameters for this technology, the performance parameters and characteristics, so that we can have intelligent consultative conversations with our customers about what kind of applications it would be suitable for. So we're at that stage now where I mentioned that we're now including in our customers into our -- into that piece of the work, and we are shipping prototypes to prospects who want to evaluate this technology. So that's where we are.

是的。這是一項新穎的技術。如您所知，在我們的行業中，向成人引入新技術需要時間。由於我們透過 B2B OEM 管道，當我們擁有技術後，我們覺得它已經準備好供客戶消費，並且我們的客戶開始嘗試了解如何使用該技術以及如何開始構思的諮詢流程應用程式。但我們——我總結一下，我們——我們也繼續對這項技術感到興奮。我們一直在穩步、持續地驗證技術本身，並評估該技術的參數、性能參數和特性，以便我們可以與客戶就其適合什麼樣的應用進行智慧協商對話。所以我們現在正處於我提到的階段，我們現在正在將我們的客戶納入我們的工作中，我們正在向想要評估這項技術的潛在客戶提供原型。這就是我們現在的處境。

Great. Congrats on a great quarter, again.

偉大的。再次恭喜這個季度的出色表現。

Thank you.

謝謝。

Our next question is from Larry Solow with CJS Securities.

我們的下一個問題來自 CJS 證券的拉里·索洛 (Larry Solow)。

I guess first question, just sort of a general question. It sounds like demand is pretty strong across both segments and most modalities. Other than fluoroscopic, is there anything that's sort of been a laggard? You did mention, I know, on the Industrial side, the cargo is a little bit -- has been a little bit slower, that's improving. Anything else that sort of hasn't -- maybe it's come back from COVID, but it's sort of languishing? And maybe a little more insight on the Industrial side? I know you said NDT is doing well. Any other things that are doing well there?

我想第一個問題只是一個一般性問題。聽起來這兩個細分市場和大多數模式的需求都相當強勁。除了透視檢查之外，還有什麼是落後的嗎？我知道，你確實提到，在工業方面，貨運速度有點慢，但正在改善。還有其他東西沒有——也許是從新冠疫情中恢復過來的，但它有點萎靡不振？也許對工業方面有更多的了解？我知道你說無損檢測做得很好。還有其他做得好的事情嗎？

So as we said, all modalities did well in the fourth quarter. And the fluoroscopic -- the fluoro, that's timing, as you know, in our business, sometimes, one quarter, we might find one modalities. It was slightly down next quarter, someone else is slightly down. So there's no pattern there. And in the -- a couple of the modalities, so CT has been strong throughout, as you know. Surgery has held the ground throughout cardiovascular after the initial slowdowns during COVID, started to come back up as procedure volumes came back up. And then mammography was slightly slow at coming back up, but now we're seeing strength there as well, and it's returning to good help, so to say. So Larry, there's nothing that I can call out as in the Medical side that hasn't recovered or hasn't shown some strength. Even dental, there was some -- we had hard time identifying patterns because you would move around the globe in different patterns depending on as COVID moved around. But even within dental, we're starting in that recovery and growth type of mode.

正如我們所說，所有模式在第四季都表現良好。螢光鏡檢查－螢光檢查，如你所知，在我們的業務中，有時，一個季度，我們可能會找到一種模式。下個季度略有下降，其他人也略有下降。所以那裡沒有模式。如您所知，在幾種模式中，CT 自始至終都很強大。在新冠疫情期間最初的放緩之後，隨著手術量的回升，外科手術在整個心血管領域佔據了基礎。然後乳房X光檢查的恢復速度稍慢，但現在我們也看到了那裡的力量，可以說，它正在恢復良好的幫助。所以拉里，我可以指出醫療方面沒有什麼還沒有恢復或沒有表現出一定的實力。即使是牙科，也有一些——我們很難識別模式，因為根據新冠病毒的傳播情況，你會以不同的模式在全球範圍內移動。但即使在牙科領域，我們也正以恢復和成長類型的模式開始。

On the Industrial side, cargo and security, in general, cargo and airport security, although they're on the right trajectory. And as you look at our customers, major OEMs in that space, they're also reporting orders -- confirming orders that they have received. And sooner or later, we expect those to translate into shipments for us as well. So that is a positive sign, and it's -- as we said, it's moving in the right direction. Industrial NDT, it's areas that were strong previously that we mentioned in our earlier calls, like electronics inspection, battery inspection. Our detectors are doing very well in that space. And then broad-based NDT is -- seems like business as usual.

在工業方面，貨運和安全，總的來說，貨運和機場安全，儘管它們處於正確的軌道上。當您觀察我們的客戶（該領域的主要原始設備製造商）時，他們也會報告訂單 - 確認他們已收到的訂單。我們預計這些遲早也會轉化為我們的出貨量。所以這是一個積極的跡象，正如我們所說，它正在朝著正確的方向發展。工業無損檢測，這是我們之前在電話中提到的強勢領域，例如電子產品檢查、電池檢查。我們的探測器在這個領域表現得非常好。然後基礎廣泛的無損檢測似乎一切如常。

Okay. No, that's a very good color there. And then just second question, just on guidance. I know you're no longer giving annual guidance, just kind of give the quarterly guidance. Sort of a bunch of moving parts. Maybe you can just help better frame the year. I don't know if there's any seasonality if that even comes into play anymore. Q1 used to be slower, but maybe with supply chain stuff and still COVID, maybe that's skewed out a little bit, but it sounds like you have a couple of pluses going forward.

好的。不，那裡的顏色非常好。然後是第二個問題，只是關於指導。我知道你們不再提供年度指導，只是提供季度指導。有點像一堆活動部件。也許你可以幫助更好地規劃這一年。我不知道是否還有季節性。第一季過去速度較慢，但也許由於供應鏈問題以及新冠疫情的影響，可能有點偏差，但聽起來未來有一些優勢。

Pricing will roll in, and you'll get more of a benefit as the year goes on. Let's call the seasonality a washer now. Supply chain, did this -- did you expect that to get better or worse? So you should -- should you make up or expect to make up these lost revenue? And I guess, it sounds like R&D might be a little bit higher. So just trying to -- does Q1, is that a good representation of the year? Should we expect things to get better, get worse marketably on either side of that? Maybe you can just help give us a little more perspective from high level.

定價將會不斷增加，隨著時間的推移，您將獲得更多的好處。現在我們將季節性稱為洗衣機。供應鏈，你預期情況會變得更好還是更糟？所以你應該——你應該彌補或期望彌補這些收入損失嗎？我想，聽起來研發可能會更高一點。所以只是想——第一季是今年的一個很好的代表嗎？我們是否應該期望市場狀況會變得更好，或者在市場上變得更糟？也許你可以幫助我們從更高的層次提供更多的視野。

Thank you, Larry. Yes, that's a lot of questions there and a lot of good ones, Larry. So yes, absolutely. So yes, you're right that in general, Q1 is a slow quarter for us, but that is when the world is in a demand constrained environment. As you know, when in a normal year, there is seasonality because of demand and all of that type of stuff. So that concept applied there. But right now, as we indicated quite clearly that we are operating in a supply-constrained environment, so seasonality goes out the window. And essentially, if the supply chain bottlenecks were not there, then we would be shipping more than what we are guiding here. But we are clearly operating in that constrained environment. So I would say that not to focus too much on seasonality, but maybe perhaps by the following year, in 2023, seasonality comes back and all of the supply chain constraints are removed, who knows. So that's the perspective on seasonality.

謝謝你，拉里。是的，那裡有很多問題，而且有很多很好的問題，拉里。所以是的，絕對是的。所以，是的，你是對的，總的來說，第一季對我們來說是一個緩慢的季度，但那時世界正處於需求受限的環境中。如您所知，在正常年份，由於需求和所有此類因素，存在季節性。所以這個概念應用在那裡。但現在，正如我們非常清楚地表明的那樣，我們正在供應受限的環境中運營，因此季節性因素已經消失。從本質上講，如果不存在供應鏈瓶頸，那麼我們的發貨量將超過我們在此指導的數量。但我們顯然是在那種受限的環境中運作的。所以我想說，不要過度關注季節性，但也許到下一年，即 2023 年，季節性會回來，所有供應鏈限制都會被消除，誰知道呢。這就是季節性的觀點。

Then in terms of the year, as it develops, et cetera, the way we are thinking about this situation is that, how we are planning -- we are planning to invest in R&D resources. We are planning to invest additional CapEx and increasing the capacity for the tubes factory, and a number of other things. So we are expecting FY 2022, our fiscal '22 to be a growth here. However, in terms of guidance and any such thing for the entire year, we really do not have that much of visibility. And what I mean by that is visibility into the supply chain. It is a very uncertain, unpredictable type of an environment. So we are staying away from providing an annual guidance. So all I can say at this time is that we are expecting fiscal '22 to be a growth year. And if supply chain constraints get retired early, then we can do better. And if they continue to remain constrained, then we will operate in a constrained environment. And that's where really the -- what we can say at this time, Larry.

然後就今年而言，隨著它的發展等等，我們對這種情況的思考方式是，我們如何規劃——我們計劃投資研發資源。我們計劃投資額外的資本支出並增加管材工廠的產能，以及其他一些事情。因此，我們預計 2022 財年，即我們的 22 財年將實現成長。然而，就全年的指導和任何此類事情而言，我們確實沒有那麼多的可見性。我的意思是供應鏈的可見性。這是一個非常不確定、不可預測的環境。因此，我們不會提供年度指導。因此，我現在只能說，我們預計 22 財年將是成長年。如果供應鏈的限制儘早消失，那麼我們就能做得更好。如果他們繼續受到限制，那麼我們將在一個受限的環境中運作。這就是我們現在可以說的，拉里。

So that's a growth year on an EPS basis, you're saying. Is that…

你說，從每股盈餘來看，今年是成長的一年。就是它…

No. I mean it from a sales basis. Yes, I mean it from a sales basis.

不。我的意思是從銷售角度來看。是的，我的意思是從銷售角度來看。

Okay. That's fine. I just appreciate the clarification. Last question, just longer term, ex supply chain issues, are there further levers on the gross margin side? Or is that just a mix and overhead abruption thing? And then similarly, is it on the operating side? Is that -- it sounds like R&D could wait for a little bit up and down, but it's maybe remain in the 8% to 10% range. Is the operating income or margin more of adjusted operating leverage there on a go-forward basis?

好的。沒關係。我只是感謝您的澄清。最後一個問題，從長遠來看，除供應鏈問題外，毛利率方面是否還有進一步的槓桿？或者這只是混合和開銷中斷的事情？那麼同樣，是在營運方面嗎？是這樣嗎——聽起來研發可以等待一點上下，但它可能會保持在 8% 到 10% 的範圍內。未來的營業收入或利潤率是否更多的是調整後的營業槓桿？

Yes. So from an operating leverage basis, thanks, Larry. Yes, on an operating leverage basis, definitely, the P&L has significant operating leverage. And both of our segments are growing segments. So outside of supply chain and whatever headwinds there are, outside of that, we should see a nice development of operating leverage on our P&L. Definitely, incremental sales should drive incremental operating income. So from a longer-term perspective, thinking that way and modeling that way would be fine.

是的。因此，從營運槓桿的角度來看，謝謝拉里。是的，在營運槓桿的基礎上，損益表肯定具有顯著的營運槓桿。我們的兩個細分市場都在成長。因此，除了供應鏈之外，無論存在什麼逆風，我們都應該看到損益表上的營運槓桿有良好的發展。當然，增量銷售應該會帶動營業收入增量。因此，從長遠來看，以這種方式思考和建模就可以了。

Our next question is from Jim Sidoti with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 Jim Sidoti。

I wanted to ask you about inventory because it's down, I think, almost $40 million from fiscal 2020. And it's seeming down about $20 million from fiscal 2021 -- I mean, fiscal '19. What -- why is that? And is that trending to continue? Or do you think you'll have to invest in inventory going forward?

我想問您有關庫存的問題，因為我認為庫存比 2020 財年減少了近 4000 萬美元。與 2021 財年（我的意思是 19 財年）相比，似乎減少了約 2,000 萬美元。什麼——這是為什麼？這種趨勢會持續下去嗎？或者您認為未來必須投資庫存嗎？

Sure, Jim. Let me take that question. So yes, as you know, we rolled out an initiative to reduce inventory at the beginning of fiscal '21, and we had provided you some color and some guidance on that, and I'm pleased to say that we were able to achieve or overachieve those targets. So we did well over there. However, as you rightly pointed out, right now, in this type of a supply chain environment, I would rather have a bit more inventory than less.

當然，吉姆。讓我來回答這個問題。所以，是的，如您所知，我們在 21 財年年初推出了一項減少庫存的舉措，我們已經為您提供了一些相關資訊和指導，我很高興地說我們能夠實現或超額實現這些目標。所以我們在那裡做得很好。然而，正如您正確指出的那樣，目前，在這種類型的供應鏈環境中，我寧願擁有更多的庫存，而不是更少的庫存。

So my thinking is and how we are planning is that more likely than not, that inventory would go up in the remaining -- in the coming quarters, probably not all the way back to the levels where it was when we started the year, but perhaps a little bit of buildup in the inventory. And as I said, we are expecting fiscal '22 to be a growth year. So I think that would provide a nice support to our growth objective here on the top line and then also provide a little bit more streamlined and efficient operations for our factory. So we are not necessarily targeting further reduction in inventory for the upcoming fiscal year. Now it can move around, [above] around here or there from quarter-to-quarter, but we do not have another initiative for fiscal '22 that we had for '21.

所以我的想法是，我們的計劃是，在接下來的幾個季度裡，庫存很可能會增加，可能不會一直回到年初的水平，但也許庫存有一點累積。正如我所說，我們預計 22 財年將是成長的一年。因此，我認為這將為我們的成長目標提供很好的支持，同時也為我們的工廠提供更精簡和高效的營運。因此，我們不一定要在下一財年進一步減少庫存。現在它可以按季度左右移動，[上圖]，但我們沒有像 21 財年那樣針對 22 財年採取其他措施。

All right. But even if you don't get that boost to cash flow from the inventory, I mean, it seems like even if it's not the $92 million of operating cash you had in fiscal 2021, there is going to be significant operating cash generated in fiscal 2022. And with CapEx spending around $25 million, you're still going to have quite a bit of free cash. What are the uses of that going forward?

好的。但即使你沒有從庫存中獲得現金流的增加，我的意思是，即使這不是你在 2021 財年擁有的 9200 萬美元的運營現金，也將在 2021 財年產生大量的運營現金。2022 年。由於資本支出約為 2500 萬美元，您仍然將擁有相當多的自由現金。未來有什麼用處？

Yes. You're right. We expect to generate positive cash for coming fiscal year for sure. Yes, that's what we are planning at this time. Again, as I have said that our goal is to fully fund all the operating needs, new technologies, as well as CapEx that I laid out, the details that I laid out for CapEx. Beyond that, for the excess cash flow, we are allowed to pay down some amount of debt every calendar year. So that is one opportunity. And if any such decision is made, we will be -- we would go ahead and share that with you as and when such a decision is made. So that opportunity is there. But broadly, I would say our focus is to delever, whether it is on a net debt basis, where the cash is on our balance sheet or we are able to retire the debt, either which way, I think the strategy is to keep on delevering.

是的。你說得對。我們預計下一財年一定會產生正現金。是的，這就是我們目前正在計劃的。再次，正如我所說，我們的目標是為所有營運需求、新技術以及我列出的資本支出和我為資本支出列出的細節提供充分資金。除此之外，對於多餘的現金流，我們可以每年償還一定金額的債務。所以這是一個機會。如果做出任何此類決定，我們將在做出此類決定時與您分享。所以這個機會就在那裡。但總的來說，我想說，我們的重點是去槓桿化，無論是在淨債務基礎上，現金都在我們的資產負債表上，還是我們能夠償還債務，無論哪種方式，我認為策略都是繼續去槓桿化。

(Operator Instructions) Our next question is from Suraj Kalia with Oppenheimer & Co.

（操作員說明）我們的下一個問題來自 Oppenheimer & Co. 的 Suraj Kalia。

Sunny and Sam, can you hear me all right?

桑尼和山姆，你們聽得到我說話嗎？

Yes. Suraj, how are you?

是的。蘇拉吉，你好嗎？

Gentlemen, congrats on a great quarter and excellent progress. Sunny, a bunch of questions for you and a couple for Sam also. So let me throw out my questions to you first, Sunny. Specifically, you -- this was the first call that I remember in a long time, you're spending so much time on AI, and how it could be a significant component of the overall business. Maybe you could walk us through how you view Varex's AI? What is the competitive advantage, for example, in lung versus other systems, other AI systems? That would be one question for you, Sunny. If I could just tap on a couple more to you. The cold cathode, what all validation is still needed? And would you venture to first trial that out on the Industrial or the Medical side? And finally, I'd love to get a little more color on the flexible substrate, digital detector. I don't want to get too bogged down on the engineering side, but it's a fascinating concept, and I'd love any color you could provide.

先生們，恭喜這個季度的出色表現和出色的進步。桑尼，有很多問題想問你，還有一些問題想問山姆。所以讓我先向你提出我的問題，Sunny。具體來說，這是我很長一段時間以來記得的第一個電話，您在人工智慧上花費了很多時間，以及它如何成為整個業務的重要組成部分。也許您可以向我們介紹一下您如何看待 Varex 的人工智慧？例如，與其他系統、其他人工智慧系統相比，肺部的競爭優勢是什麼？這對你來說是一個問題，桑尼。如果我能再給你點幾個就好了。冷陰極，還需要什麼驗證？您會冒險在工業或醫療方面首先進行試驗嗎？最後，我希望在柔性基板、數位探測器上獲得更多的顏色。我不想在工程方面陷入太多困境，但這是一個令人著迷的概念，我希望您能提供任何顏色。

Okay. So I'll take it in that sequence. First of all, on AI, Suraj, we have been in this technology area for quite some time. So the company that, as you know, the MeVis, the company that we acquired in Germany that would be own 73% of, they've been in the competitive detection space for a very long time. So there's been a lot of field experience and a lot of in-house experience with AI technology. So there, we have developed lung screening workstation. So the difference in our lung screening workstation, or what we do versus someone else's, and I can't speak for our competitor, relatively. What we do very well is, it's a full workflow solution.

好的。所以我會按照這個順序來討論。首先，關於人工智慧，Suraj，我們在這個技術領域已經有一段時間了。所以，如你所知，我們在德國收購的 MeVis 公司將擁有 73% 的股份，他們在檢測領域的競爭已經很長時間了。因此，我們在人工智慧技術方面擁有豐富的現場經驗和內部經驗。因此，我們開發了肺部篩檢工作站。因此，我們的肺部篩檢工作站的差異，或我們與其他人所做的工作的差異，相對而言，我不能代表我們的競爭對手說話。我們做得很好的是，它是一個完整的工作流程解決方案。

AI algorithms, it's one thing to build the AI algorithms and sell those to OEMs and they come and get it versus what we have the full workflow solution designed at being able to enable radiologists do lung screening with high velocity. It's the same type of workflow and efficiency solution that you see in mammography screening, where you need to read at very high-speed because there are -- we anticipate that as the volumes of lung screening increased that organizations would have to deal with it -- with limited radiologists and very efficiently. And so that's the main thing. At the end of the day, the radiology group wants -- they want to go through -- they want to see efficiency in their productivity in their department.

人工智慧演算法，建立人工智慧演算法並將其出售給原始設備製造商（OEM），他們來獲取它是一回事，而我們擁有完整的工作流程解決方案，旨在使放射科醫生能夠高速進行肺部篩檢。這與您在乳房X 光檢查篩檢中看到的工作流程和效率解決方案類型相同，您需要以非常高的速度讀取，因為- 我們預計，隨著肺部篩檢量的增加，組織將不得不處理它 - - 放射科醫生數量有限，但效率很高。這就是主要的事情。歸根結底，放射科小組希望——他們想要經歷——他們希望看到他們部門的生產力效率。

Secondly, on the clinical side, we believe we've got a very, very robust clinical solution, where the combination of the way we present the images for diagnosis, the way we -- the things that we do to help the radiologists such as being able to track progression of tumors over historicals and be able to provide information with automated calculations, we can do volumetric measuring. These are the kinds of things that make it clinically very user-friendly. And the radiologist's experience is really, really great. And by the way, this has come from decades of working on these types of workflow solutions. So that's basically what we're doing.

其次，在臨床方面，我們相信我們已經有了一個非常非常強大的臨床解決方案，其中結合了我們呈現診斷影像的方式，我們為幫助放射科醫生所做的事情，例如由於能夠追蹤腫瘤的歷史進展並能夠透過自動計算提供信息，我們可以進行體積測量。這些使得它在臨床上非常用戶友好。放射科醫師的經驗真的非常非常好。順便說一句，這是數十年來對此類工作流程解決方案的研究成果。這基本上就是我們正在做的事情。

Now we're also -- in this particular case, we are taking we're taking steps to help the industry with adoption. And that's why we are positioning these technologies in tenders. And as you know, outside the U.S., most of these kinds of programs are initiated by different government health initiatives. So in the U.K., in Canada, and other parts of the world, we have been participating in tenders and largely to get ourselves out there and provide the momentum for adoption of AI technologies.

現在，在這種特殊情況下，我們正在採取措施來幫助業界採用。這就是我們在招標中定位這些技術的原因。如您所知，在美國以外，大多數此類計劃都是由不同的政府衛生措施發起的。因此，在英國、加拿大和世界其他地區，我們一直在參與招標，主要是為了走出去，為人工智慧技術的採用提供動力。

So that's -- and then we've continued on with that work with other organ systems, either like liver, dental. And the intention here is broad-based. One, to be able to market these independently, separately, but also to be able to incorporate these technologies into our broader solutions. So if you were to -- we do offer software analysis packages, the image processing packages that are included as part of our detectors. So I mean, these images can be preprocessed before they even get to a radiologist. And so if I were to fast forward and say, we would continue to stay down on that path and bring more of those capabilities into our broader applications. Okay. So that was a color on the AI.

所以，然後我們繼續與其他器官系統合作，像是肝臟、牙齒。這裡的意圖是廣泛的。第一，能夠獨立、單獨地行銷這些技術，而且能夠將這些技術納入我們更廣泛的解決方案中。因此，如果您願意，我們確實提供軟體分析包，影像處理包包含在我們的偵測器中。所以我的意思是，這些影像甚至可以在交給放射科醫生之前進行預處理。因此，如果我快進地說，我們將繼續沿著這條道路走下去，並將更多這些功能帶入我們更廣泛的應用程式中。好的。這就是人工智慧的顏色。

Secondly, cold cathode, so then our multi-emitter nanotube-related X-ray sources, we're -- we continue to push the edges of that technology to make sure that we understand what it's capable of, and that's what we've been doing. And I don't want to share -- I've given you everyone a color as to what that meant. And we -- all I'll just say is we've continued to make that journey down the path, and we're not disappointed, but we are learning about how -- one, how to make these tubes into more and more complex tubes with lot more emitters and make them in a way that satisfies our needs to ascertain stability, performance, life, longevity, yield, all those kinds of things. And we are in that life cycle of our product development life cycle, where this is a good time for us to engage with OEMs, and that's what we're doing.

其次，冷陰極，我們的多發射器奈米管相關的 X 射線源，我們繼續推動該技術的邊緣，以確保我們了解它的能力，這就是我們所擁有的。我不想分享——我已經給大家提供了一種顏色來說明這意味著什麼。我們——我只想說的是，我們繼續沿著這條路走下去，我們並沒有失望，但我們正在學習如何——第一，如何使這些管子變得越來越複雜具有更多發射器的管子，並以滿足我們確定穩定性、性能、壽命、壽命、產量等所有需求的方式製造它們。我們正處於產品開發生命週期的生命週期中，這是我們與原始設備製造商合作的好時機，這就是我們正在做的事情。

Now Industrial versus Medical, we -- the conversations we're having with customers are simultaneously, but it's always convenient for us to put something in an industrial setting where there are fewer regulatory constraints there. So it's easier for us to try something out in the field and the experience there helps because we -- that's a real-life use, real-life integration activity. So that's what we're doing. So it's a pretty standard part of our process and journey that we're doing, and we have not been disappointed so far.

現在，工業與醫療相比，我們與客戶的對話是同時進行的，但對我們來說，將某些東西放在監管限制較少的工業環境中總是很方便。因此，我們更容易在現場嘗試一些東西，那裡的經驗很有幫助，因為我們——這是一個現實生活中的使用、現實生活中的整合活動。這就是我們正在做的事情。所以這是我們正在做的流程和旅程中相當標準的一部分，到目前為止我們並沒有失望。

And then lastly, the flex substrate -- sorry, Suraj.

最後是柔性基板——抱歉，Suraj。

Yes, go ahead, please.

是的，請繼續。

Yes, flex substrate. So the flex substrate is -- it's -- you should think about it in terms of, when we talked about Z Platform, Z Platform use the new material called IGZO. But the difference between just dropping in an IGZO sensor, we didn't do that. What we did was we took advantage of the performance that you get from that type of sensor with that material, and we designed a whole new platform for dynamic detectors with the Z Platform. It's a whole new simulator, whole new electronics, whole new everything, to take full advantage of that platform. Same way with flexible substrate, flex by itself doesn't do much. I mean our detectors don't -- the breakage rate, glass breakage rate is very nominal.

是的，柔性基板。因此，柔性基板是——它是——你應該從以下角度考慮它，當我們談論 Z 平台時，Z 平台使用稱為 IGZO 的新材料。但與僅僅放入 IGZO 感測器的區別是，我們沒有這樣做。我們所做的就是利用該類型感測器與該材料獲得的性能，並透過 Z 平台設計了一個全新的動態探測器平台。這是一個全新的模擬器，全新的電子設備，全新的一切，可以充分利用該平台。與柔性基板相同，柔性本身並沒有太大作用。我的意思是我們的探測器沒有——破損率、玻璃破損率非常小。

Weight savings will be, okay, it will be an order of a few hundred grams, but that wasn't a big deal. What we've done with the new generation of detectors that we're planning to introduce half customer shippable versions available in the middle -- by May or June of this upcoming year is to redesign that radiographic platform with high capabilities. These would be premium capabilities that would bring down into the radiographic detectors with lower cost design, lower cost supply chain. And the intention here is to attack that space aggressively. So these will be very high-quality premium detectors. And while we're at it, we decided, (inaudible) move away from glass until flexible substrate. And we get the added benefit of robustness in the mechanical design.

重量會減輕，好吧，會減輕幾百克，但這沒什麼大不了的。我們計劃在明年五月或六月推出新一代探測器，其中一半可交付給客戶，我們所做的就是重新設計具有高性能的射線照相平台。這些都是優質功能，可以降低射線照相探測器的設計成本和供應鏈成本。這裡的目的是積極攻擊那個空間。因此，這些將是非常高品質的優質探測器。當我們這樣做時，我們決定（聽不清楚）從玻璃轉向柔性基板。我們也獲得了機械設計穩健性的額外好處。

Interesting. Sam, one question for you, and I'll hop back in queue. And maybe you already referenced this, so please forgive me if I didn't catch this. So Sam, one of the things when you joined and you had clearly articulated efforts to improve gross margin and optimize the P&L, and inventory was one component. I believe, $25 million or so that you had articulated, and please correct me if I got the number wrong. But inventory was one target area. In this environment, supply chain issues, are you shifting any LIFO/ FIFO base because the raw materials are also, the price is increasing. And if you could help us understand this 5% ASP increase, how sustainable do you think is this pass-through in terms of a price increase? Gentlemen, congrats again.

有趣的。山姆，問你一個問題，我會重新排隊。也許您已經引用了這一點，所以如果我沒有聽清楚這一點，請原諒我。所以薩姆，當你加入時，你明確表達了提高毛利率和優化損益表的努力之一，而庫存就是其中之一。我相信，您所說的大約是 2500 萬美元，如果我的數字有誤，請糾正我。但庫存是目標領域之一。在這種環境下，供應鏈問題，你是否會轉移任何後進先出/先進先出的基礎，因為原材料也在增加，價格也在上漲。如果您能幫助我們了解 5% 的平均售價上漲，您認為這種轉嫁價格上漲的可持續性如何？先生們，再次恭喜。

Thanks, Suraj. Yes, that's right that the inventory reduction was one of our initiatives for fiscal '21 that we signed up for, and as the results show that we were able to definitely achieve those. Our current situation and our accounting method, the LIFO/FIFO, we are not discussing that. So we are not looking at changing the accounting method or the inventory standard cost method or inventory relieving method. So we plan to continue to follow the same practices that we have followed before. So that's on the LIFO versus FIFO in the inventory.

謝謝，蘇拉吉。是的，沒錯，減少庫存是我們簽署的 21 財年措施之一，結果顯示我們確實能夠實現這些目標。我們目前的情況和我們的會計方法，即後進先出/先進先出，我們不討論這個。因此，我們不會考慮改變會計方法或庫存標準成本法或庫存減免方法。因此，我們計劃繼續遵循我們之前遵循的相同做法。這就是庫存中的後進先出法與先進先出法。

And in terms of the price reduction versus the cost increases, our goal with price increase has been and was when we rolled out the price increase, was to pass on the cost increases to our customers. It's not an initiative to improve gross margin. For gross margin improvement, we continue to work towards improving factory efficiencies, relaying out the factory, reducing warranty costs, reducing scrap and improving yield and all of those initiatives, which are all pretty much determined by us. In terms of price increases, our plan is to maintain the gross margin guidance that we provided you -- I should not use the word guidance, but gross margin expectations on a longer-term basis, 35% plus/minus 1%, plus/minus 100 basis points, that should continue.

就降價與成本增加而言，我們提價的目標一直是，當我們推出漲價時，就是將成本增加轉嫁給我們的客戶。這並不是提高毛利率的舉措。為了提高毛利率，我們繼續努力提高工廠效率、重新佈局工廠、降低保固成本、減少廢品和提高產量以及所有這些舉措，這些舉措很大程度上都是由我們決定的。在價格上漲方面，我們的計劃是維持我們為您提供的毛利率指導——我不應該使用指導這個詞，而是長期的毛利率預期，35% 加/減 1%，加/負100個基點，這種情況應該會持續下去。

And what we are doing here is to maintain that gross margin expectation and pass on the increase in raw materials costs over to customers, and that's how we are looking at pricing. And we are expecting these to remain sustainable. These are not transitory. As you know, some of the costs do not go down. For example, wage inflation is also something that we are dealing with, and that's not expected to go down. So from our vantage point, prices that we are rolling out are not transitory, they are permanent. And then subject to other market factors that may come in future, we'll deal with them. But from our perspective, the increase in prices is permanent.

我們在這裡所做的就是維持毛利率預期，並將原物料成本的增加轉嫁給客戶，這就是我們看待定價的方式。我們預計這些將保持可持續。這些都不是暫時的。如您所知，有些成本不會下降。例如，薪資通膨也是我們正在應對的問題，而且預期不會下降。因此，從我們的角度來看，我們推出的價格不是暫時的，而是永久性的。然後根據未來可能出現的其他市場因素，我們會進行處理。但從我們的角度來看，價格上漲是永久性的。

We have reached the end of the question-and-answer session. I will now turn the call over to Chris Belfiore for closing remarks.

我們的問答環節已經結束。現在我將把電話轉給克里斯貝爾菲奧裡 (Chris Belfiore) 致閉幕詞。

Thank you for your questions and participating in our earnings conference call for the fourth quarter of fiscal year 2021. The webcast and supplemental slide presentation will be archived on Varex website. A replay of this quarterly conference call will be available through November 30, 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 13724162. Thank you, and goodbye.

感謝您提出問題並參加我們的 2021 財年第四季財報電話會議。網路廣播和補充幻燈片簡報將存檔在 Varex 網站上。本季度電話會議的重播將持續到 11 月 30 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。S.地點。重播電話會議接入碼為13724162。謝謝，再見。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。