Varex Imaging Corp (VREX) 2020 Q1 法說會逐字稿

Greetings, and welcome to the Varex Imaging Corporation First Quarter Fiscal Year 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Varex Imaging Corporation 2020 財年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Mr. Howard Goldman, Director of Investor Relations. Please go ahead, sir.

現在我想將會議交給東道主投資者關係總監霍華德·戈德曼先生。請繼續，先生。

Good afternoon, and welcome to our earnings conference call for the first quarter of fiscal year 2020. With me today are Sunny Sanyal, our President and CEO; and Clarence Verhoef, our CFO.

下午好，歡迎參加我們 2020 財年第一季的收益電話會議。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 Clarence Verhoef。

To simplify our discussions, unless otherwise stated, all references to the quarter are comparison for the first quarter of fiscal 2020 versus the first quarter of fiscal 2019.

為了簡化我們的討論，除非另有說明，所有提及該季度的內容都是 2020 財年第一季與 2019 財年第一季的比較。

On today's call, we will discuss certain non-GAAP financial measures. These adjusted measures are not presented in accordance with, nor are they a substitute for GAAP financial measures. We provided a reconciliation of each adjusted financial measure to the most directly comparable GAAP financial measure in our earnings press release, which is posted on our website. Outlook for our net earnings per diluted share is provided on an adjusted basis only. This adjusted financial measure is forward-looking, and we are unable to provide a meaningful or accurate compilation of reconciling items to guidance for GAAP net earnings per diluted share due to the uncertainty of the amount and timing of the unusual items.

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。這些調整後的指標並非依照公認會計準則財務指標提出，也不能取代公認會計原則財務指標。我們在我們網站上發布的收益新聞稿中提供了每項調整後的財務指標與最直接可比較的 GAAP 財務指標的調整表。我們的稀釋每股淨利潤展望僅在調整後的基礎上提供。這項調整後的財務指標具有前瞻性，由於異常項目的金額和時間的不確定性，我們無法提供有意義或準確的調節項目彙編，以指導 GAAP 攤薄後每股淨利潤。

Please be advised that during this call, we will be making forward-looking statements, which are predictions or 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.

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或預測。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。

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.

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，包括我們 10-Q 表格季度報告和 10-K 表格年度報告的第 1A 項風險因素。

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.

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。

And now I'll turn the call over to Sunny.

現在我將把電話轉給 Sunny。

Thank you, Howard. Good afternoon, and welcome. We started off this fiscal year with strong top line performance in the first quarter. However, our profitability was below expectations due to a number of different factors that Clarence and I will review with you.

謝謝你，霍華德。下午好，歡迎光臨。我們在本財年伊始，第一季的營收表現強勁。然而，由於克拉倫斯和我將與您一起審查的許多不同因素，我們的盈利能力低於預期。

Revenues in the first quarter were up 8% to $200 million from $186 million in the same quarter a year ago. Direct Conversion contributed $5 million in the quarter.

第一季營收從去年同期的 1.86 億美元成長 8% 至 2 億美元。Direct Conversion 在本季貢獻了 500 萬美元。

On a segment basis, medical revenues increased 8% and industrial revenues increased 6%. Our revenue growth was driven by higher global sales of CT tubes and products for oncology, dental and airport baggage screening applications. Partially offsetting these gains were lower sales of radiographic digital detectors and mammography products.

分部門看，醫療收入成長8%，工業收入成長6%。我們的收入成長得益於用於腫瘤學、牙科和機場行李檢查應用的 CT 管和產品的全球銷售增加。射線照相數位偵測器和乳房X光檢查產品的銷售下降部分抵消了這些收益。

Growth in our Industrial segment in the first quarter was once again led by strong demand for our industrial CT tubes for airport baggage screening applications. To give you some color, according to third-party research, the global market for these airport screening systems is projected to grow at the rate of more than 5% compounded annually over the next 5 years and reach $4.3 billion by 2023.

第一季工業部門的成長再次受到對機場行李檢查應用的工業 CT 管的強勁需求的推動。為您提供一些參考，根據第三方研究，這些機場安檢系統的全球市場預計在未來 5 年內將以每年 5% 以上的複合成長率成長，到 2023 年將達到 43 億美元。

Stringent security regulations and the need for improved throughput has been driving the demand for CT systems for both checked and carry-on baggage screening. Over the coming years, we expect that most airports will replace older systems with more sophisticated next-generation CT systems that offer 3D imaging and automated threat-detection capabilities.

嚴格的安全法規和提高吞吐量的需求一直推動著對用於托運行李和隨身行李檢查的 CT 系統的需求。未來幾年，我們預計大多數機場將用更先進的下一代 CT 系統取代舊系統，這些系統可提供 3D 影像和自動威脅偵測功能。

In nondestructive testing and inspection, we continue to ship linear accelerators for imaging applications in the aerospace, defense and manufacturing verticals. During the quarter, we also opened a new office in the Houston area to be closer to and better serve customers in the oil and gas vertical. We have several new products for this vertical moving through development phases and expect to talk more about them in the coming quarters.

在無損檢測和檢驗方面，我們繼續為航空航太、國防和製造垂直領域的成像應用提供線性加速器。本季度，我們還在休士頓地區開設了一個新辦事處，以更貼近並更好地服務石油和天然氣垂直行業的客戶。我們有幾種針對該垂直領域的新產品正在經歷開發階段，並預計在未來幾個季度將更多地討論它們。

In our Medical segment, we had strong global sales of CT tubes as well as an increase in sales of oncology and dental products. In particular, dental detector revenues increased double digits from the prior year quarter and have grown sequentially over the past 4 quarters.

在我們的醫療部門，我們的 CT 管全球銷售強勁，腫瘤和牙科產品的銷售也有所增加。特別是，牙科探測器收入比去年同期增長了兩位數，並且在過去四個季度中連續增長。

We also announced this afternoon that Varex has renewed its 3-year pricing agreement with Canon Medical Systems for calendar years 2020 through 2022.

今天下午我們也宣布，Varex 已與佳能醫療系統續簽了 2020 年至 2022 年的 3 年期定價協議。

This agreement extends our multi-decade long relationship with Canon Medical through which we continue to supply our CT tubes and heat exchangers for integration into Canon Medical's CT imaging systems for the global market. We estimate potential product sales during the term of this renewed agreement to be approximately $385 million.

該協議延續了我們與佳能醫療數十年的長期合作關係，透過這種關係，我們繼續向全球市場提供 CT 管和熱交換器，以便整合到佳能醫療的 CT 成像系統中。我們估計在續約協議期間潛在的產品銷售額約為 3.85 億美元。

In addition, through separate agreements, we also supply Canon Medical with our digital detectors and high-voltage connectors. We're also happy to say that since the beginning of this fiscal year, we have renewed a number of additional multiyear pricing agreements with key customers. To give you a frame of reference, these customers, including Canon, represented more than 50% of our Medical segment revenues in fiscal year 2019. These agreements reinforce the long-term nature of our partnerships with our customers.

此外，透過單獨的協議，我們也向佳能醫療提供我們的數位偵測器和高壓連接器。我們也很高興地說，自本財年年初以來，我們已與主要客戶續簽了許多額外的多年定價協議。為了給您一個參考框架，包括佳能在內的這些客戶在 2019 財年占我們醫療部門收入的 50% 以上。這些協議加強了我們與客戶的長期合作關係。

In China, our local OEM customers continue to make progress in bringing their new CT systems to market, and we expect that our unit volumes will continue to grow this fiscal year. This growth in China, along with rest of world activity, contributed to overall growth in our global CT tube sales during the quarter. As a reminder, most of the CT systems in China are new placements that expand our global installed base of CT tubes. As the installed base grows, we expect to benefit from sales of both the initial CT tubes that are incorporated into the new systems as well as multiple future replacements over the life of the systems.

在中國，我們當地的 OEM 客戶在將新 CT 系統推向市場方面不斷取得進展，我們預計本財年將繼續成長。中國的成長以及世界其他地區的活動推動了本季我們全球 CT 管銷售的整體成長。提醒一下，中國的大多數 CT 系統都是新部署的，旨在擴大我們的全球 CT 球管安裝基礎。隨著安裝量的成長，我們預計將從新系統中的初始 CT 管的銷售以及系統生命週期內的多個未來替換管的銷售中受益。

During the first quarter, our Wuxi facility manufactured and shipped its first orders of our new locally made radiographic digital detectors for both local Chinese OEMs and global OEMs at factories in China. We shipped a number of prototypes to existing and prospective customers, and early feedback has been positive. We also recently signed a multiyear contract with the dental OEM customer based in China, and we will be supplying them the detectors from our Wuxi facility. This new customer is just one example of dental OEMs that are launching new systems in China, and we look forward to the prospect of working with more of these potential customers in the future.

第一季度，我們的無錫工廠為中國本土原始設備製造商和中國工廠的全球原始設備製造商製造並運送了第一批新的本地製造的放射線數位偵測器訂單。我們向現有和潛在客戶交付了許多原型，早期回饋非常積極。我們最近還與中國的牙科 OEM 客戶簽署了一份多年期合同，我們將從我們的無錫工廠向他們提供探測器。這位新客戶只是在中國推出新系統的牙科原始設備製造商的一個例子，我們期待未來與更多這些潛在客戶合作。

While we're talking about China, let me give you an update on how the coronavirus outbreak has impacted us. As a point of reference, our facility in Wuxi is located about 450 miles east of Wuhan and about 90 miles west of Shanghai. Like many other manufacturers in China, we have temporarily put a hold on operations at our facility in Wuxi and shifted manufacturing to other locations to cover current demand. While this has certainly been a concerning time, I'm glad to report that as of today none of our employees have contracted the virus. We currently anticipate being able to reopen our factory next week and look forward to resuming production. Somewhat in response to this major health event, we have seen early signs of some increased near-term demand for our CT tubes and radiographic detectors that are incorporated into diagnostic imaging systems used for screening this type of respiratory disease. We will continue to monitor the situation closely.

當我們談論中國時，讓我向您介紹冠狀病毒爆發對我們有何影響的最新情況。作為參考，我們在無錫的工廠位於武漢以東約 450 英里、上海以西約 90 英里處。與中國許多其他製造商一樣，我們暫時暫停了無錫工廠的運營，並將生產轉移到其他地點以滿足當前需求。雖然這確實是一個令人擔憂的時期，但我很高興地報告，截至今天，我們的員工還沒有感染該病毒。目前，我們預計下週能夠重新開放我們的工廠，並期待恢復生產。在某種程度上，為了應對這一重大健康事件，我們已經看到了對CT 管和放射線探測器的近期需求增加的早期跡象，這些探測器被納入用於篩選此類呼吸道疾病的診斷成像系統中。我們將繼續密切關注事態發展。

Marketing efforts in our Medical segment are paying off. In December, we attended RSNA, the largest trade show event of the year for the medical imaging industry, where we showcased and discussed several new technologies and innovative products. These included our Z Platform digital detectors, nonglass flexible substrate detectors, photon counting detectors, liquid metal bearing, cardiac and CT tubes and nanotube x-ray tubes. We also exhibited in the new AI Pavilion where our software team demonstrated artificial intelligence capabilities to autonomously detect and discriminate meaningful artifacts and x-ray images for lung screening and liver and dental applications.

我們醫療部門的行銷努力正在發揮成效。12 月，我們參加了醫學影像產業年度最大的貿易展會 RSNA，在會上我們展示並討論了多項新技術和創新產品。其中包括我們的 Z 平台數位探測器、非玻璃柔性基板探測器、光子計數探測器、液態金屬軸承、心臟和 CT 管以及奈米管 X 射線管。我們也在新的人工智慧館中進行了展示，我們的軟體團隊展示了人工智慧功能，可以自動檢測和區分有意義的偽影和 X 光影像，用於肺部篩檢、肝臟和牙科應用。

Overall, RSNA was a busy show for us, and we came away with a good number of meetings scheduled with prospective customers that want to discuss ways our new technologies can be incorporated into their next-generation x-ray imaging systems. We expect these new technologies to be a significant competitive differentiator for us in the future.

總體而言，RSNA 對我們來說是一場繁忙的展會，我們安排了與潛在客戶的大量會議，這些客戶希望討論如何將我們的新技術納入他們的下一代 X 射線成像系統。我們預計這些新技術將成為我們未來的重要競爭優勢。

Before I turn over the call to Clarence, let me provide you with some high-level comments regarding our gross margin, which was lower than expected in the first quarter. Quarterly variation in gross margins is not unusual for us. Our adjusted gross margin rate has ranged from 33% to 38% over the past 8 quarters. This is primarily caused by changes in product mix, volume or productivity and could also be due to timing of customer pricing changes and product cost reduction activities. We are in competitive markets that have varying levels of price erosion, particularly with digital detectors. To offset this, we have ongoing programs to lower our cost structure by optimizing our supply chain, redesigning products for cost effectiveness and improving factory productivity and product yields. A separate and significant opportunity for improvement relates to the previously announced closure of our Santa Clara facility and related transfer of operations to Salt Lake City and other Varex locations.

在我將電話轉給克拉倫斯之前，讓我向您提供一些有關我們第一季毛利率低於預期的高層評論。毛利率的季度變化對我們來說並不罕見。過去 8 個季度，我們調整後的毛利率在 33% 至 38% 之間。這主要是由產品組合、產量或生產率的變化引起的，也可能是由於客戶定價變化和產品成本降低活動的時間安排所造成的。我們處於競爭激烈的市場，價格受到不同程度的侵蝕，尤其是數位探測器。為了抵​​消這一影響，我們不斷實施計劃，透過優化供應鏈、重新設計產品以提高成本效益以及提高工廠生產力和產品產量來降低成本結構。一個單獨且重要的改進機會與先前宣布的關閉我們的聖克拉拉工廠以及相關業務轉移到鹽湖城和其他 Varex 地點有關。

We had expected to be able to stop production in Santa Clara by the end of calendar year 2020. Good progress has been made by the team, and we now expect to pull the closure date in by a full quarter with some ramp down of operations in the fourth quarter of fiscal year 2020.

我們原本預計能夠在 2020 年底前停止在聖克拉拉的生產。該團隊已經取得了良好進展，我們現在預計將關閉日期提前整個季度，並在 2020 財年第四季減少營運。

With that, let me hand over the call to Clarence to talk about our financial performance in greater detail.

接下來，讓我將電話轉交給克拉倫斯，更詳細地討論我們的財務表現。

Thanks, Sunny, and hello, everyone. Let me follow-up on Sunny's comments about the Santa Clara closure. As we get closer to completion of this project, we now have a better view on timing of its financial impact. Previously, we indicated that the net annual benefit from the closure would be in the range of $21 million to $27 million, beginning in the second quarter of fiscal year 2021. We have already received some of that benefit by closing the glass fab portion of the facility in the first half of fiscal year 2019. By now pulling in the closure date for the rest of the facility, we expect to receive a full year of benefit in fiscal year 2021.

謝謝，Sunny，大家好。讓我跟進桑尼關於聖克拉拉關閉的評論。隨著該專案越來越接近完成，我們現在對其財務影響的時間有了更好的了解。先前，我們表示，從 2021 財年第二季開始，關閉帶來的年度淨收益將在 2,100 萬美元至 2,700 萬美元之間。透過在 2019 財年上半年關閉該工廠的玻璃工廠部分，我們已經獲得了部分收益。截至目前，該設施其餘部分的關閉日期已確定，我們預計將在 2021 財年獲得全年收益。

Last quarter, we indicated that there would be $0.05 to $0.07 of EPS impact in fiscal year 2020 for the overlapping cost of the transition from Santa Clara to Salt Lake City. The pull-in of the closure date allows us to offset these overlapping costs within this fiscal year and helped to maintain our gross margin expectations for the full year.

上季度，我們表示，從聖克拉拉過渡到鹽湖城的重疊成本將對 2020 財年的每股盈餘產生 0.05 至 0.07 美元的影響。關閉日期的提前使我們能夠在本財年內抵消這些重疊成本，並有助於維持我們全年的毛利率預期。

Now turning to the quarter. We had good revenue performance, while both gross and operating margins were weighed down by some onetime events. In particular, we had an additional week in the first quarter. Fiscal year 2020 is a 53-week year for Varex, with the first quarter being 14 weeks instead of 13. This impacted a number of items throughout the P&L in the first quarter. The good news is that in the added week delivered some additional revenues, however, the extra week contained a number of holidays, which had a negative impact on productivity, while we also had higher operating expenses due to the additional week.

現在轉向季度。我們的收入表現良好，但毛利率和營業利潤率都受到一些一次性事件的影響。特別是，第一季我們多了一周。對 Varex 來說，2020 財年是 53 週的一年，第一季是 14 週，而不是 13 週。這影響了第一季損益表中的許多項目。好消息是，在增加的一周內實現了一些額外的收入，但是，額外的一周包含了許多假期，這對生產力產生了負面影響，同時我們也因增加的一周而產生了更高的運營費用。

For the first quarter, revenues were $200 million compared to $186 million in the prior year quarter. Medical revenues for the quarter increased 8% to $156 million, and industrial revenues increased 6% to $45 million.

第一季的營收為 2 億美元，而去年同期的營收為 1.86 億美元。本季醫療收入成長 8%，達到 1.56 億美元，工業收入成長 6%，達到 4,500 萬美元。

For the first quarter, our gross margin was 31% compared to 32% in the prior year quarter. Medical segment gross margin declined by about 3 points. During the quarter, we had lower productivity in our factories with the added holidays and a physical inventory in the first week of October. Our digital detector margins declined due to additional costs in Europe related to a customs audit, and we increased reserves for warranty and slow-moving inventory. Industrial segment gross margin improved by about 3 points versus the prior year due to a favorable mix of higher-margin products. Overall, our adjusted gross margin was 33% compared to 36% in the prior year quarter.

第一季度，我們的毛利率為 31%，而去年同期為 32%。醫療板塊毛利率下降約3個百分點。在本季度，由於假期增加和 10 月第一周的實體庫存，我們工廠的生產率較低。由於歐洲與海關審核相關的額外成本，我們的數位偵測器利潤下降，並且我們增加了保固和滯銷庫存的儲備。由於高利潤產品的有利組合，工業部門的毛利率比去年提高了約 3 個百分點。整體而言，我們調整後的毛利率為 33%，去年同期為 36%。

R&D expenses were $22 million in the first quarter, an increase of $3 million from the prior year quarter. R&D expense increased to about 11% of revenues, primarily due to the additional week in the quarter and the inclusion of direct conversion. First quarter SG&A expenses were $35 million and included approximately $5 million of expenses related to acquisition integration, restructuring and other nonoperational costs. SG&A expenses also increased versus the prior year due to the added week in the quarter and higher audit and consulting fees. SG&A expenses for the prior year quarter were $31 million and included approximately $3 million of expenses related to restructuring and other nonoperating costs.

第一季研發費用為 2,200 萬美元，比去年同期增加 300 萬美元。研發費用增加至收入的 11% 左右，主要是由於本季增加了一周以及直接轉換的納入。第一季的 SG&A 費用為 3,500 萬美元，其中包括約 500 萬美元的與收購整合、重組和其他非營運成本相關的費用。由於本季增加了一周以及審計和諮詢費用增加，SG&A 費用也較上年增加。去年同期的銷售、管理及行政費用為 3,100 萬美元，其中包括約 300 萬美元的與重組和其他非營運成本相關的費用。

Going forward, we will be adopting a change in our reporting of non-GAAP adjustments. For fiscal years 2018 and '19 and the first quarter of fiscal year 2020, we treated the expenses associated with the implementation of Sarbanes-Oxley as a non-GAAP adjustment due to its initial setup after our separation from Varian. Now that SOx implementation and monitoring has transitioned to an ongoing activity, any audit and consulting costs associated with SOx implementation and monitoring will no longer be treated as a non-GAAP adjustment.

展望未來，我們將在非公認會計原則調整報告中進行更改。對於2018 財年和19 財年以及2020 財年第一季度，我們將與實施《薩班斯-奧克斯利法案》相關的費用視為非GAAP 調整，因為其初始設定是在我們與瓦里安分離後進行的。現在，SOx 實施和監控已轉變為一項持續活動，與 SOx 實施和監控相關的任何審計和諮詢成本將不再被視為非 GAAP 調整。

Depreciation and amortization totaled $9 million for the first quarter compared to $14 million in the prior year. The first quarter of last year included $4 million of accelerated depreciation associated with the restructuring of the detector fab operations.

第一季折舊和攤銷總額為 900 萬美元，而去年同期為 1,400 萬美元。去年第一季包括與探測器工廠運作重組相關的 400 萬美元加速折舊。

Our operating earnings for the first quarter were $5 million compared to $10 million in the year ago quarter. Our adjusted operating earnings for the first quarter were $15 million compared to $20 million in the year ago quarter.

我們第一季的營業利潤為 500 萬美元，而去年同期為 1,000 萬美元。我們第一季調整後的營業利潤為 1,500 萬美元，而去年同期為 2,000 萬美元。

Interest expense in the first quarter was $5 million, which is comparable to the year ago quarter. Tax benefit for the first quarter was near 0 compared to tax expense of $1 million in the prior year quarter.

第一季利息支出為 500 萬美元，與去年同期相當。與去年同期 100 萬美元的稅收支出相比，第一季的稅收優惠接近 0。

We recorded a net loss of $1 million or $0.03 per diluted share in the first quarter compared to net earnings of $3 million or $0.08 per diluted share in the prior year quarter. Adjusted net earnings for the quarter were $8 million or $0.21 per diluted share compared to $10 million or $0.26 per diluted share in the prior year quarter.

我們第一季的淨虧損為 100 萬美元，即稀釋後每股 0.03 美元，而去年同期淨利為 300 萬美元，即稀釋後每股 0.08 美元。本季調整後淨利為 800 萬美元，即稀釋後每股收益 0.21 美元，去年同期為 1,000 萬美元，即稀釋後每股收益 0.26 美元。

Diluted shares outstanding were 39.1 million shares versus 38.3 million shares in the prior year quarter.

稀釋後流通股數為 3,910 萬股，去年同期為 3,830 萬股。

Looking at our working capital. Accounts receivable decreased by $18 million during the quarter. Days sales outstanding was 55 days compared to 65 days in the prior year quarter. Inventory increased $21 million in the first quarter to $269 million.

看看我們的營運資金。該季度應收帳款減少了 1800 萬美元。銷售應收天數為 55 天，去年同期為 65 天。第一季庫存增加 2,100 萬美元，達到 2.69 億美元。

We ended the first quarter with cash and cash equivalents of $30 million. During the quarter, we reduced debt by $14 million and ended the quarter with total debt outstanding of $381 million.

第一季結束時，我們的現金和現金等價物為 3000 萬美元。本季度，我們減少了 1,400 萬美元的債務，本季末未償債務總額為 3.81 億美元。

During the first quarter, we completed the implementation of a new accounting standard for leasing. The impact on the P&L was immaterial, but it increased our assets and liabilities by roughly equal amounts of $25 million and $26 million, respectively. We are still completing some of the work related to this new accounting standard, and as a result, we will not file our 10-Q for the first quarter by its deadline tomorrow, but plan on filing it in the near future. Even though the first quarter gross and operating margins were lower than usual, we anticipate that our overall financial performance will be in line with our expectations for the year.

一季度，我們完成了新租賃會計準則的實施。對損益表的影響並不重大，但它使我們的資產和負債分別增加了大致相等的 2500 萬美元和 2600 萬美元。我們仍在完成與這項新會計準則相關的一些工作，因此，我們不會在明天的截止日期之前提交第一季的 10-Q，但計劃在不久的將來提交。儘管第一季毛利率和營業利潤率低於平常，但我們預計我們的整體財務表現將符合我們今年的預期。

Lastly, I would like to announce that after more than 14 years with Varex and Varian, I intend to retire from Varex later this year. I will stay on to assist through the transition to a new CFO. So I look forward to continuing to work with all of you over the next few quarters.

最後，我想宣布，在為 Varex 和瓦里安工作超過 14 年後，我打算今年晚些時候從 Varex 退休。我將繼續協助完成新財務長的過渡。因此，我期待在接下來的幾季繼續與大家合作。

So before we move on to Q&A -- this is Sunny Sanyal, I just want to take a moment to acknowledge the tremendous contributions that Clarence has made to the company. Clarence has been an integral part of our company for many, many years and an inspirational leader through the spinoff from Varian 3 years ago. During his time as a finance leader for Varian and later Varex, the imaging components business grew revenues from under $100 million to over $780 million. And with his help and guidance, we established a global finance team and the corporate infrastructure that will lead us into the future. His in-depth knowledge of the industry and our operations have been a tremendous asset, and we've been very fortunate to have clearance on our management team.

因此，在我們進行問答之前，我是 Sunny Sanyal，我只想花點時間感謝 Clarence 對公司的巨大貢獻。多年來，Clarence 一直是我們公司不可或缺的一部分，並且在 3 年前從瓦里安分拆出來後，他成為了一位鼓舞人心的領導者。在他擔任瓦里安 (Varian) 和後來的瓦雷克斯 (Varex) 的財務主管期間，成像組件業務的收入從不到 1 億美元增加到超過 7.8 億美元。在他的幫助和指導下，我們建立了全球財務團隊和企業基礎設施，將引領我們走向未來。他對產業和我們營運的深入了解是一筆巨大的財富，我們非常幸運能夠獲得管理團隊的許可。

With that, let's open up the call for your questions.

接下來，讓我們開始詢問您的問題。

(Operator Instructions) Your first question comes from the line of Anthony Petrone with Jefferies.

（操作員說明）您的第一個問題來自 Anthony Petrone 和 Jefferies 的電話。

Clarence, congratulations, and best of luck to you in the future, hope to cross paths again as time goes on. Maybe just to stay on the topic of CEO, just to address just transition expectation for timing on transition and just what the approach is going to be there? And then I'll have a few follow-ups.

克拉倫斯，恭喜你，祝你未來好運，希望隨著時間的推移再次相遇。也許只是停留在執行長的話題上，只是為了解決過渡期的過渡期望以及過渡的方法是什麼？然後我會進行一些後續行動。

Yes, Anthony. So Clarence, as we said, has expressed his intent to retire. So with that, we are just beginning the process. We didn't really start until how we will get going. We expect to do this expeditiously, but Clarence will stay on for a significant portion of the year, and he will assist in transition through that.

是的，安東尼。因此，正如我們所說，克拉倫斯已經表達了退休的意圖。至此，我們才剛開始這個過程。直到我們將如何開展，我們才真正開始。我們希望盡快做到這一點，但克拉倫斯將在今年的大部分時間裡留下來，他將協助過渡。

Okay. And then maybe just to shift to the numbers for the quarter and just go into adjusted operating margin and guidance and just the bridge. So I understand that some of the costs and nonrecurring and -- allocated to the first quarter. But maybe just as you look out over the next 3 quarters, what -- where is the comfort level and sort of getting back the $0.07 deficit that we've seen here in the first quarter? And specifically, what are the drivers there? Is it mix? Is it the expectation for order flow from whether it be China OEMs or newly signed customers, et cetera? So just a little bit of help in bridging from the first quarter numbers to the guidance for the full year?

好的。然後也許只是轉向本季度的數字，然後進入調整後的營業利潤率和指導以及橋樑。因此，我了解到一些成本和非經常性成本分配給了第一季。但也許正如您展望未來 3 個季度一樣，舒適度在哪裡，以及能否收回我們在第一季看到的 0.07 美元的赤字？具體來說，驅動因素是什麼？是混合的嗎？是否是來自中國主機廠或新簽約客戶等的訂單流預期？那麼，在從第一季的數據到全年的指導之間是否有一點幫助呢？

Sure. So I'd say this -- I mean, I think you touched on a couple of things, first of all, that you have some onetime events in the quarter, but that also made the margin rates, both operating profit and gross margins be at a lower level than would be for the full year. The key item is actually going to be all around the Santa Clara closure by pulling that in by a quarter, I think that makes a significant benefit because before we had built into the numbers, the overlap cost of ramping up operations in Salt Lake City and a little bit in some other locations and with none of the benefit happening in the fiscal year and really fundamentally not happening till mid-2021. So now as we pull that in, we get a little bit of that benefit or some amount of that benefit in the fourth quarter already and that has a good impact for us. I would say that the other element is, as we've seen the good demand on -- for CT tubes going forward for the year, that helps us a little bit on the product mix side. So I think that's going to be the other element that is going to make a bit of a difference there.

當然。所以我想說的是——我的意思是，我認為你談到了幾件事，首先，你在本季度發生了一些一次性事件，但這也使得利潤率，包括營業利潤和毛利率低於全年水平。關鍵的項目實際上是圍繞聖克拉拉的關閉，將其拉動四分之一，我認為這會帶來很大的好處，因為在我們計算出數字之前，鹽湖城和鹽湖城業務增加的重疊成本和其他一些地方也有一點點，但本財年並沒有帶來任何好處，而且實際上要到 2021 年中期才根本上不會發生。因此，現在當我們引入這一點時，我們已經在第四季度獲得了一點好處或一定數量的好處，這對我們產生了良好的影響。我想說，另一個因素是，正如我們看到的那樣，今年對 CT 管的良好需求，這對我們在產品組合方面有所幫助。所以我認為這將是另一個會產生一些影響的因素。

That's helpful. And maybe to shift gears just to the top line outlook and specifics, Sunny, your comments in China. So we've seen so far this earnings season just the mix view as it relates to coronavirus. You mentioned in your prepared comments that potentially, there is some higher-than-expected demand due to coronavirus. Just trying to get a sense of installation cycles, specifically for CT machines in China. Siemens, for instance, sort of announced that it's not necessarily orders, but timing on installations that could be impacted. So just maybe a little bit on CT installation cycles in China? And then I'll have one last follow-up.

這很有幫助。也許只是為了重點展望和具體細節，桑尼，你在中國的評論。因此，到目前為止，我們在本財報季看到的只是與冠狀病毒相關的混合觀點。您在準備好的評論中提到，由於冠狀病毒，需求可能會高於預期。只是想了解安裝週期，特別是中國 CT 機的安裝週期。例如，西門子就宣布，受影響的不一定是訂單，而是安裝時間。那麼，也許可以稍微了解一下中國的 CT 安裝週期呢？然後我將進行最後一次跟進。

Yes. So Anthony, it's -- we don't get good visibility to what it takes for our OEMs from the point where they order our tubes, how long it sits in their facility versus how long it gets -- how long -- what -- how much elapsed time is to install the systems. From our perspective, when our customer places an order, we typically ship x works. So the point where they pick up the tubes is when we consider as having shipped to them. Now that said, these -- the reference I made to slight uptick in demand for the tubes, these are for immediate shipments. I mean the customers are standing on top of us to try to get these tubes from us ASAP. These are over and above what they had ordered. So we're doing our best to get these out to them ASAP and trying to cover as much of that in sort of with urgency. And these systems are -- will get shipped out by our customers ASAP out of their facilities. So that's -- I don't know if that answers your question, but these are -- we expect to fulfill bulk of that extra demand in this current quarter.

是的。所以安東尼，我們無法很好地了解我們的原始設備製造商從訂購我們的管子時需要做什麼，它在他們的工廠中放置了多長時間，以及它得到了多長時間——多長時間— —什麼－安裝系統需要多長時間。從我們的角度來看，當客戶下訂單時，我們通常會運送 x 件作品。因此，當我們認為已經運送給他們時，他們就會拿起管子。話雖如此，我提到的管材需求略有上升，這些是為了立即發貨。我的意思是，客戶站在我們的上方，試著盡快從我們這裡拿到這些管子。這些超出了他們訂購的內容。因此，我們正在盡最大努力盡快將這些內容提供給他們，並嘗試以緊急的方式涵蓋盡可能多的內容。這些系統將由我們的客戶盡快從他們的設施中運出。所以，我不知道這是否能回答您的問題，但我們預計在本季滿足大部分額外需求。

Okay. And last one for me, and I'll get back in here is, just in tariffs, there was a deadline that was upcoming in December. Some other capital providers, specifically intuitive, mentioned there was some pull forward of orders ahead of that potential deadline, of course, never happened. But just wondering if there was any sort of tariffs dynamics in the quarter.

好的。最後一個問題是，我會回到這裡，就關稅而言，最後期限即將在 12 月到來。其他一些特別直觀的資本提供者提到，在潛在的截止日期之前有一些訂單提前，當然，這從未發生過。但只是想知道本季是否有任何關稅動態。

No, we did not see any change in our customers' ordering patterns or any other behavior change one way or another due to the tariffs.

不，我們沒有看到客戶的訂購模式發生任何變化，也沒有看到任何其他行為因關稅而發生這樣或那樣的變化。

Your next question comes from the line of Larry Solow with CGS (sic) [CJS] Securities.

您的下一個問題來自 CGS（原文如此）[CJS] 證券公司的 Larry Solow。

Great. Just a couple of questions. Sunny, you mentioned and you had a separate release on the Canon agreement. And you actually mentioned that you've re-upped, it sounds like on greater than 50% of your medical contracts. Can you give us any feel for pricing, volume changes? Are these contracts basically just rolling over at similar levels? Any color there would be great.

偉大的。只是幾個問題。桑尼，您提到過，您對佳能協議有單獨的發布。你實際上提到你已經重新升級了，聽起來超過 50% 的醫療合約。能為我們介紹一下定價、銷售變化嗎？這些合約基本上只是以相似的水平展期嗎？任何顏色都會很棒。

Yes. So Larry, a couple of -- first, a backgrounder on the reason for my comment about the other contracts. So first of all, it's great to always see our largest customer, Cannon, continue on this with decades-long relationship with us. So we're excited about this. We're into the second month of the calendar year. And I thought I'd just, as a frame of reference, just give you that example of how we're doing with the rest of our customers, and it's just as a representative. The key point there for us is that these are multiyear agreements. So that means our customers have -- not only have faith in us, but also faith in stability of pricing in the market. You might recall a few years ago when we were seeing huge swings in detector pricing, very few customers would agree to any kind of multiyear pricing agreement with us. But we're happy to say that we're able to get our customers to lock in with 3-year pricing agreements. So we're very happy about that.

是的。拉里，首先，介紹一下我對其他合約發表評論的原因。首先，很高興看到我們最大的客戶 Cannon 繼續與我們保持數十年的合作關係。所以我們對此感到興奮。我們進入了日曆年的第二個月。我想，作為一個參考框架，我只是給大家一個例子，說明我們如何與其他客戶合作，這只是作為一個代表。對我們來說，關鍵點是這些是多年期協議。因此，這意味著我們的客戶不僅對我們有信心，而且對市場定價的穩定性也有信心。您可能還記得幾年前，當我們看到探測器價格大幅波動時，很少有客戶會同意與我們簽訂任何類型的多年定價協議。但我們很高興地說，我們能夠讓客戶鎖定 3 年定價協議。所以我們對此感到非常高興。

And then coming to your question about any color on pricing and price erosion, et cetera. Nothing. There's been no real shift in pricing approach or price erosion since our previous conversations that are noteworthy. Tubes' price -- pricing on tubes has continued to be consistent with historical levels. In fact, we get -- in some cases, we were on hold prices. In some cases, we give some nominal adjustments for volumes. And actually, in some other cases, it's performance-driven. We've started looking at performance-based pricing. So I'd say tubes has been fairly consistent. Detectors, fees price erosion. And we've said, historically, we've seen price erosion in single digits, and that has continued. So there's really nothing dramatic that, that's worth mentioning.

然後是關於定價和價格侵蝕等方面的任何顏色的問題。沒有什麼。自從我們之前值得注意的對話以來，定價方法沒有真正的轉變或價格侵蝕。管材價格－管材定價繼續與歷史水準保持一致。事實上，在某些情況下，我們暫停了價格。在某些情況下，我們會對交易量進行一些名義上的調整。實際上，在其他一些情況下，它是性能驅動的。我們已經開始考慮基於績效的定價。所以我想說管子一直都相當一致。探測器、收費價格侵蝕。我們說過，從歷史上看，我們已經看到了個位數的價格侵蝕，而且這種情況仍在持續。所以確實沒有什麼值得一提的戲劇性的事情。

Okay. And just trying to follow up just on Anthony's question about the profitability in the quarter. So obviously, it was -- I know you don't guide to the quarter, but it sounds like it was certainly below your numbers on the gross line? And then operating expenses, obviously, were certainly much higher than your guide was for the full year. Is there any -- you said, there was an extra quarter -- excuse me, extra week in the quarter, but that also should obviously benefited revenue. So I'm just trying to bridge the gap a little bit better. And you sort of said, you'll make up for it with a little bit of an earlier closure on the facility, but making up for it. But is there -- are we at a lower -- in other words, was it just - was this an aberration? Or you have to make up for it and then some with other quarters of lower numbers? I'm just trying to get a better grasp to that.

好的。只是想跟進安東尼關於本季獲利能力的問題。很明顯，我知道您沒有對本季進行指導，但聽起來肯定低於您的總收入數字？顯然，營運費用肯定比全年指南高得多。是否有任何 - 你說，有一個額外的季度 - 對不起，該季度額外的一周，但這顯然也應該有利於收入。所以我只是想更好地彌補差距。你好像說過，你會提前關閉該設施來彌補這一點，但還是彌補了。但是，我們是否處於較低水平——換句話說，這是否只是——這是一種失常嗎？或者你必須彌補它，然後用其他季度的較低數字來彌補？我只是想更好地理解這一點。

Let me take a shot at that first, Larry, in terms of...

拉里，讓我先嘗試一下…

Yes. Just sort of -- in summary, just trying to figure out why you missed, not how you're going to make it up? You've explained how you're going to try and make it up, but you haven't really explained why you missed?

是的。總而言之，只是想弄清楚為什麼你錯過了，而不是如何彌補？你已經解釋了你將如何嘗試彌補，但你還沒有真正解釋為什麼你錯過了？

Yes. So I mean the -- adding an extra week is not an insignificant impact on the operating expenses, you're right, and we get a little bit of extra revenue, which is what I mentioned. And we -- and the variable costs are going to be running at the same kinds of levels as the revenue. So that's normal. But the OpEx expenses, there's no offset to that. So there's an incremental $4 million, $5 million, something in that kind of a range of additional operating expenses in the quarter just due to the extra week. And that's basically in R&D and SG&A.

是的。所以我的意思是——增加一周對營運費用的影響並不是微不足道的，你是對的，我們得到了一點額外的收入，這就是我提到的。我們以及變動成本將與收入保持在同一水平。所以這很正常。但營運支出卻無法抵銷。因此，由於多了一周，本季的一系列額外營運費用增加了 400 萬美元、500 萬美元。這基本上是在研發和銷售、一般管理費用方面。

And then the -- within the gross margin, you basically have a few of those unusual or onetime kinds of events, not necessarily around -- all around the extra week, but more about relative to the detector business didn't perform quite as well as we wanted it to do in the quarter. And I mentioned customs audit, where we set aside some money for that and set aside some money for warranty and slow-moving inventory. Those are all factors that come into play and are the primary drivers of that. I mean there's -- beyond that, it's kind of business as usual, I would say, in terms of the rest of the moving parts in the quarter.

然後，在毛利率範圍內，基本上會發生一些不尋常或一次性的事件，不一定會在額外的一周內發生，但與探測器業務相關的更多事件表現不佳正如我們希望在本季度做到的那樣。我提到了海關審計，我們為此留出了一些錢，並留出了一些錢用於保固和滯銷庫存。這些都是發揮作用的因素，也是其主要驅動因素。我的意思是，除此之外，我想說的是，就本季的其餘活動部分而言，一切照常進行。

And then just switching gears a little bit, Sunny mentioned you spoke to some of the closures of the facility in China, and hopefully, that reopen soon, and then also the coronavirus and maybe you'll actually get a little bit of a benefit from some new -- some more diagnostic equipment going towards that. But net-net, are you -- do you think from where you stand today in your guidance is coronavirus have any effect, negative or positive? Or is it right now you're not adjusting for that?

然後稍微轉換話題，桑尼提到你談到了中國工廠的一些關閉，希望這些工廠很快重新開放，然後還有冠狀病毒，也許你實際上會從中受益一些新的——一些更多的診斷設備正在實現這一目標。但是網絡網絡，您認為從您今天的指導立場來看，冠狀病毒有任何影響，無論是消極的還是積極的？或者現在你還沒有適應這一點？

So it's too early to tell one way or another.

因此，現在判斷這種或另一種方式還為時過早。

Right. I mean just quantitatively more...

正確的。我的意思是數量上更多...

Yes, quantitatively, unbalanced. The extra orders of tubes and detectors will be helpful. Those are -- those, we hope, are incremental versus pull-ins. Again, tough to say, but since these are going to the sites that are specifically impacted by the coronavirus, you can hypothesize that these are incremental to the normal plans that any hospitals might have, but that's still TBD.

是的，數量上，不平衡。額外訂購管子和偵測器將會有所幫助。我們希望這些是漸進式的而不是拉動式的。同樣，很難說，但由於這些將前往特別受冠狀病毒影響的地點，您可以假設這些是任何醫院可能製定的正常計劃的增量，但這仍然是待定。

In terms of -- on the cost side, we carry -- we haven't seen any -- there hasn't been a cost impact to us, we -- not yet. We carry inventory for our materials and purchases and the things that we depend on from China. So for the rest of the quarter, and as we get into -- all the way through March, we're working off of our current supply chain. So we haven't felt an impact one way or another. Now if the situation gets worse and beyond the current projections, then I think the entire industry and globally everyone will be impacted and us in a similar way. So -- but that's a wait-and-see situation for us.

就成本而言，我們還沒有看到任何成本對我們造成影響，我們還沒有。我們有來自中國的材料、採購品以及我們依賴的物品的庫存。因此，在本季度剩餘的時間裡，當我們進入整個三月時，我們正在利用當前的供應鏈進行工作。所以我們還沒有感受到某種程度的影響。現在，如果情況變得更糟並超越目前的預測，那麼我認為整個產業和全球每個人都會受到影響，我們也會受到類似的影響。所以——但這對我們來說是一個觀望的情況。

I think, Larry, though, what this does is it introduces a little bit more uncertainty in the year. In terms of quarter-to-quarter variation, just like we talked about that we already have quarterly variations, just is more of the same as what that tells me.

不過，拉里，我認為這會在今年帶來更多的不確定性。就季度到季度的變化而言，就像我們談到的那樣，我們已經有了季度變化，這與我所知道的更加相同。

Right. Right. Okay. Just last question. Any update on how Direct is performing. I think you sort of scaled back expectations a little bit last quarter from, I think, initially when you acquired it. You mentioned the $5 million this quarter, but perhaps, it's a little of an inflated number. So any update on how that's progressing?

正確的。正確的。好的。只是最後一個問題。有關 Direct 執行情況的任何更新。我認為上個季度你比最初收購它時稍微降低了預期。您提到本季的 500 萬美元，但也許這個數字有點誇張。那麼有進展嗎？

So I would say that -- okay, the $5 million is a nice number for us. And you're right that we had backed off a little bit on the timing of when they -- when some of -- we expect some of their deliveries to happen to their customers. And this isn't about them being -- having challenges with developing product or getting product out the door, but it's more about the new applications that Direct is -- Direct's products, photon counting is going into, take time to get to the market and get -- gone through the market acceptance phases and the development process by their customers. And that's been a little bit where we see their challenge has been a little bit around the timing of when their customers will be ramping up their business. I mean overall, it's still proving out to be a very strong technology that is being well received. We had a ton of traffic at the RSNA trade show around it. There was a lot of interest in the products. So I think it's going to do very well, but it's a question a little bit about near term versus long term.

所以我想說——好吧，500 萬美元對我們來說是一個不錯的數字。你是對的，我們在他們——當他們中的一些人——我們期望他們的一些交付發生在他們的客戶身上的時間上有所退縮。這與他們在開發產品或推出產品方面遇到的挑戰無關，而更多的是關於 Direct 的新應用程式 -- Direct 的產品，光子計數正在進入，需要時間才能進入市場並獲得——經歷市場接受階段和客戶的開發過程。我們看到他們的挑戰與客戶擴大業務的時間有關。我的意思是，總的來說，它仍然被證明是一項非常強大的技術，並且受到了廣泛的歡迎。在 RSNA 貿易展上，我們周圍的人流量很大。人們對這些產品很感興趣。所以我認為它會做得很好，但這是一個關於短期與長期的問題。

Great. Okay, excellent. I appreciate it. And Clarence, I second those words. Best of luck to you. I'm sure, we'll still talk for the next couple of quarters or so.

偉大的。好的，非常好。我很感激。克拉倫斯，我贊同這些話。祝你好運。我確信，我們仍會在接下來的幾季左右進行討論。

Yes. Thanks, Larry.

是的。謝謝，拉里。

Your next question comes from the line of Suraj Kalia with Oppenheimer.

你的下一個問題來自蘇拉吉·卡利亞（Suraj Kalia）和奧本海默（Oppenheimer）的對話。

Can you hear me all right?

你聽得到我說話嗎？

Yes, we can.

我們可以。

Yes.

是的。

Perfect. So first and foremost, Clarence, it's been a pleasure dealing with you, and best of luck. Although we'll still be dealing for a couple more quarters, I guess, but congrats nonetheless.

完美的。首先，克拉倫斯，很高興與您打交道，祝您好運。雖然我猜我們還需要幾季的交易，但還是恭喜你。

So you guys provided a lot of commentary. And Clarence, maybe you can, or Sunny, maybe you guys can fill in the blanks for us. The 8% uptick in the Medical segment. So one was, Sunny, your comments about the short-term demand, right? The customers wanted to fill orders ASAP for whatever reason. The second is, there was an extra selling week that was offset by holidays. So when I take all these 3, can you normalize for us what the Medical segment growth would have been year-over-year if I remove some of these factors? And I guess what I'm trying to understand is how sustainable is the step-up in this category, particularly?

所以你們提供了很多評論。克拉倫斯，也許你可以，或者桑尼，也許你們可以為我們填補空白。醫療領域成長 8%。桑尼，您對短期需求的評論是嗎？無論出於何種原因，客戶都希望盡快完成訂單。第二個是，額外的銷售週被假期所抵消。因此，當我考慮所有這 3 個因素時，您能否為我們標準化如果我刪除其中一些因素，醫療部門的同比增長情況？我想我想了解的是這一類別的進步的可持續性如何，特別是？

So Suraj, I'll let Clarence chime in, but let me just clarify. The extra demand that we saw for -- or that we alluded to for coronavirus was not in Q1. It would be for what we would ship them now, right? Those are coming in now. So it's -- timing-wise that didn't impact our first quarter. The extra week does have a positive impact, and I'll let Clarence comment to that.

蘇拉傑，我會讓克拉倫斯插話，但讓我澄清一下。我們看到的或我們提到的冠狀病毒的額外需求並不出現在第一季。這就是我們現在運送它們的原因，對吧？那些現在正在進來。因此，從時間角度來看，這並沒有影響我們的第一季。額外的一周確實產生了積極的影響，我會讓克拉倫斯對此發表評論。

Yes. And I mean it's an extra week of production for us is the key around that. So -- but it's -- maybe if I kind of walk through a little bit of what -- how I interpret the movers of the increase, okay? So we were at $186 million, we ended up at $200 million for the -- $186 million a year ago and $200 million now. So we talk about Direct Conversion adding $5 million because that was not in the comparable period a year ago. But the extra week, I'm going to just -- I didn't put specific numbers around it, but it's probably something in the order of magnitude of $3 million to $5 million or something like that. So then you have just overall growth that's going on in our markets. And I think we touched on these a little bit because we've got multiple markets that went up double digits for us. As in the CT market, the dental market, the oncology markets, in particular, those are the biggest drivers as well as -- and we're talking about medical, but the industrial business did well in addition. So those markets have got good strong demand going forward. It's nice to actually see that recovery going on in the dental space that we -- now seems to be more of an ongoing trend as such. But it's -- at the end of the day, the big money for us is still in CT tubes. I would say that's the biggest factor.

是的。我的意思是，對我們來說，額外一週的生產是關鍵。所以 - 但它 - 也許如果我稍微介紹一下 - 我如何解釋成長的推動因素，好嗎？所以我們的資產是 1.86 億美元，一年前是 1.86 億美元，現在是 2 億美元，最終我們的資產是 2 億美元。因此，我們談論直接轉換增加了 500 萬美元，因為這不是一年前的可比時期。但額外的一周，我不會給出具體數字，但可能是 300 萬到 500 萬美元或類似的數量級。那麼我們的市場就會出現整體成長。我認為我們稍微觸及了這些，因為我們有多個市場的成長率達到了兩位數。就像 CT 市場、牙科市場、腫瘤市場一樣，這些市場尤其是最大的驅動因素——我們談論的是醫療，但工業業務也表現良好。因此，這些市場未來的需求將會非常強勁。很高興看到牙科領域正在復甦，我們現在似乎更像是持續的趨勢。但歸根結底，我們的大筆資金仍然是 CT 管。我想說這是最大的因素。

Got it. And Sunny, you guys put out this press release on renewal of the multiyear contract with Canon, and there is commentary about other customers. Maybe if I can just kind of peel a layer of the onion here. Is there a tiered-volume arrangement? Is it on a rolling order basis? How should we think about it? Is it just $385 million divided by 3? And how does it stack up relative to the comps, let's say, in the prior contract? Just help us contextualize, is it just going to provide price stability? But even if I look at that, just on the 3-year to 3-year or whatever the prior contract was. Any color there would be great.

知道了。Sunny，你們發布了關於續約與佳能多年合約的新聞稿，並且有關於其他客戶的評論。也許我可以在這裡剝一層洋蔥。有分層卷安排嗎？是滾動訂單嗎？我們該如何思考呢？是 3.85 億美元除以 3 嗎？比如說，與先前合約中的比較相比，它的表現如何？只是幫助我們了解具體情況，這只是為了提供價格穩定嗎？但即使我看一下，也只是三年到三年或之前的合約是什麼。任何顏色都會很棒。

Yes. So Suraj, I'm going to try to answer your question without just exposing competitive information. In general, our pricing agreements are based on our customers' forecasts of volume. And generally speaking, our large customers have done a pretty good job historically on -- with their business plans. So the $385 million is an estimate based on what our customers telling us that they'll do over these next 3 years. And based on -- we believe that based on that, we associate an average price for the different tube models. So $385 million is a roll-up based on that. So it's not on an ongoing rolling basis. It's based on, they tell us they're going to do x number of tubes per year, and we come to an agreement on the price for that. And that goes true -- that's true for our other customers as well. And -- okay? Hope that helps.

是的。所以蘇拉吉，我將嘗試回答你的問題，而不僅僅是暴露競爭訊息。一般而言，我們的定價協議是基於客戶的銷售預測。一般來說，我們的大客戶在他們的業務計劃方面歷來都做得非常好。因此，3.85 億美元是根據客戶告訴我們他們在未來 3 年內將要做的事情而估算的。基於－我們相信，基於此，我們關聯了不同管型號的平均價格。因此，3.85 億美元是在此基礎上匯總的。所以它不是持續滾動的。這是基於他們告訴我們他們每年將生產 x 數量的管子，並且我們就價格達成了協議。這確實是事實——對於我們的其他客戶來說也是如此。還有——好嗎？希望有幫助。

Your next question comes from the line of Mark Strouse with JPMorgan.

您的下一個問題來自摩根大通的馬克‧斯特勞斯 (Mark Strouse)。

Clarence, I'd like to add my congrats as well. So Sunny, I just want to kind of follow-up on a couple of questions that have already been asked. But you mentioned a couple of years ago, customers not necessarily looking to lock into pricing over a multiyear term. Really, since the spin, as far as I can recall anyway, you've been kind of targeting long-term growth in that mid-single-digit range. Just wondering if there's been any kind of change in that forecast now or reasons to be a bit more optimistic now that customers seem to be a bit more comfortable locking in that give you any reason to think that number could potentially be higher?

克拉倫斯，我也想表達我的祝賀。桑尼，我只想跟進已經提出的幾個問題。但您幾年前提到過，客戶不一定希望在多年內鎖定定價。確實，自從旋轉以來，據我所知，無論如何，您一直將目標定為中個位數範圍內的長期增長。只是想知道現在的預測是否有任何變化，或者有理由更加樂觀，因為客戶似乎更願意鎖定，這讓您有理由認為這個數字可能會更高嗎？

So on the -- there's no change in our position. We've said that the Medical market is growing at 2% to 3%. Industrial market's growing at 4% to 6%. So blended, we expect our growth to approach. We end up targeting 5% growth. And it's -- as one of the market leaders, where you end up growing more or less with the market, the different -- but we expect to grow do slightly better than that, and that's how we came to that 5%-ish based on our bottoms-up projections. These multiyear pricing agreements that we signed with our customers essentially give us some price stability with the products that they design agreements with. So that helps us with our forecasting, helps us with our planning.

因此，我們的立場沒有改變。我們說過醫療市場正在以 2% 到 3% 的速度成長。工業市場成長4%至6%。如此混合，我們預計我們的成長將接近。我們最終的目標是 5% 的成長。作為市場領導者之一，你最終會或多或少地隨著市場的增長而增長，這是不同的，但我們預計增長會比這稍好一些，這就是我們如何得出5% 左右的基礎的根據我們自下而上的預測。我們與客戶簽署的這些多年定價協議本質上為我們與他們設計協議的產品提供了一定的價格穩定性。這有助於我們進行預測，並幫助我們進行規劃。

(Operator Instructions) Your next question comes from the line of Jim Sidoti with Sidoti & Company.

（操作員說明）您的下一個問題來自 Sidoti & Company 的 Jim Sidoti。

Can you hear me?

你聽得到我嗎？

Yes, Jim.

是的，吉姆。

Great. Great. Clarence, I feel like I just picked it up. I hope you're not leaving because of me.

偉大的。偉大的。克拉倫斯，我感覺我剛剛撿到了它。我希望你不會因為我而離開。

No.

不。

I just want to be clear, are you reiterating your annual guidance for the year of $1.30 to $1.45 EPS?

我只是想澄清一下，您是否重申了今年 1.30 美元至 1.45 美元每股收益的年度指引？

We're not making any changes to the guidance, both revenue and EPS.

我們不會對收入和每股收益的指導進行任何更改。

Okay. I just want to be clear on that. All right. Now with the Chinese facility, you said you were able to ship products from other facilities, which I assume the Germany and possibly the U.S. Was that -- did that have an impact on the gross margin in the quarter?

好的。我只是想澄清這一點。好的。現在，有了中國工廠，您說您可以從其他工廠運送產品，我認為是德國，也可能是美國，這對本季的毛利率有影響嗎？

No, it wouldn't have made a difference in reality. I mean you're right; that's where product did ship from, probably a little more from Germany than from the U.S. (inaudible). And some of that is just because of there's still some tariffs in place that impact product that shipped from the U.S.

不，這不會對現實產生任何影響。我的意思是你是對的；這就是產品的出貨地，德國的出貨量可能比美國多一點（聽不清楚）。其中部分原因只是因為仍有一些關稅影響從美國出貨的產品。

Okay. And then the last one for me is you indicated that you're going to start to include the SOx auditing cost and some of its actual cost in your EPS. Is that a material number?

好的。最後一個對我來說是你表示你將開始將 SOx 審計成本及其一些實際成本納入你的 EPS 中。這是材料編號嗎？

It was -- so I think the non-GAAP adjustment for last year would have been probably $2 million to $3 million, somewhere in that kind of a range. So it's not an insignificant number.

所以我認為去年的非 GAAP 調整可能是 200 萬至 300 萬美元，在這個範圍內。所以這不是一個微不足道的數字。

Okay. But your guidance from $1.30 to $1.45, that anticipates that already?

好的。但是你的指導價從 1.30 美元到 1.45 美元，這已經預料到了嗎？

Yes, we knew that already going into this. So I mean, that was already built into our plans for the year.

是的，我們已經知道這一點了。所以我的意思是，這已經納入我們今年的計劃中。

Your next question is a follow-up from Anthony Petrone with Jefferies.

您的下一個問題是 Anthony Petrone 和 Jefferies 的後續問題。

Just a couple of follow-ups just to tighten up some of the math here. So the extra day, I think Clarence, you mentioned $3 million to $5 million. Was that just Medical? Is that overall? So that would be the first follow-up question just on the extra selling week, the contribution there.

只需進行幾個後續操作即可加強此處的一些數學計算。所以額外的一天，我想克拉倫斯，你提到了 300 萬到 500 萬美元。那隻是醫療嗎？整體來說是這樣嗎？因此，這將是關於額外銷售週的第一個後續問題，即那裡的貢獻。

And then in terms of additional OEM deals. I know Canon here was announced. But when you think of the top 10 OEM customers, just where are you in the cycle with those customers and/or any expected to be announced over the next year?

然後是額外的 OEM 交易。我知道佳能在這裡宣布了。但是，當您想到十大 OEM 客戶時，您與這些客戶和/或預計明年宣布的客戶處於哪個週期？

And then the last one, I'll just add in here. Just an update on high-level numbers on where China OEM orders stand both on the CT side and maybe to a lesser extent, on the flat panel side?

然後最後一個，我就在這裡補充。只是更新一下中國 OEM 訂單在 CT 方面以及在較小程度上在平板方面的高層數據嗎？

So let me start with those latter 2 questions. Anthony, we don't announce individual customer renewals or transitions. And historically, the -- we've only done that for Cannon, given the size and the volume of that renewal. So in general, the conversations with our top OEMs; top 10, top 15 big group, are actually all proceeding very well. These are -- I'm happy to say that we don't -- we're not -- we haven't seen customer leakages or anything significant that we can point to as a problem. So I'm very, very happy with the way our long-term relationships are continuing to hold and grow. And then your...

讓我從後兩個問題開始。安東尼，我們不會宣布個人客戶續訂或轉換。從歷史上看，考慮到更新的規模和數量，我們只為 Cannon 這樣做過。所以總的來說，與我們頂級原始設備製造商的對話；前10名、前15名的大集團，其實都進展得很好。我很高興地說，我們沒有——我們沒有——我們沒有看到客戶流失或任何我們可以指出的重大問題。因此，我對我們的長期關係持續保持和發展的方式感到非常非常高興。然後你的...

So maybe the follow-on to that, I guess, is the key point is that we've got renewed agreements that are multiyear agreements that represent 50% of the medical business. So this is -- it has to be our larger customers, I mean, to get to the math just to be for that to work. So it puts us in a good place with the major OEMs that are out there that are -- that have been our ongoing customers, and it's a good renewal from that perspective and sends a strong message to us about their commitment to our partnership with them.

因此，我想，接下來的關鍵點可能是我們已經續簽了多年期協議，佔醫療業務的 50%。所以，我的意思是，必須是我們的大客戶，才能進行數學計算才能使其發揮作用。因此，它使我們與主要原始設備製造商處於良好的關係，這些原始設備製造商一直是我們的長期客戶，從這個角度來看，這是一次很好的更新，並向我們發出了一個強烈的訊息，表明他們對我們與他們的合作夥伴關係的承諾。

Now back to the extra week. Basically, if you think about it, it adds a little bit of production time granted, it was during a time when you got extra holidays and the like. So it's not super productive from that perspective. But -- so that's how I came to a rough number, and it's a very rough number about how much we get out of that. And so it's -- but more importantly, I think, is that we still -- we had good demand in a variety of other just ongoing applications throughout the quarter, and that's -- that helped us to a strong quarter for the first quarter of the year.

現在回到額外的一周。基本上，如果你仔細想想，它會增加一點生產時間，那是在你有額外假期之類的時間。所以從這個角度來看，它的效率並不是很高。但是——這就是我得出一個粗略數字的方式，這是一個關於我們從中得到多少的非常粗略的數字。因此，但我認為更重要的是，我們在整個季度中對各種其他正在進行的應用程式仍然有良好的需求，這幫助我們在第一季度取得了強勁的季度業績那一年。

And then, Anthony, your last question about China CT orders and anything else around detectors. So our China CT customers are the ones who have been working on projects with us. They're continuing to make good progress. And we're seeing good, steady and growing demand from them as we had anticipated. And it's -- on the mix side, most of what we're seeing currently are their initial CT systems that they rolled out that are in the -- where the demand is the highest on the 16 slice. So -- but we're satisfied and happy with the volumes and the demand and the progress of our customers -- CT customers in China.

然後，安東尼，你的最後一個問題是關於中國 CT 訂單以及有關探測器的其他任何問題。所以我們的中國CT客戶就是那些一直與我們合作專案的客戶。他們正在繼續取得良好進展。正如我們預期的那樣，我們看到他們的需求良好、穩定且不斷增長。在混合方面，我們目前看到的大部分是他們推出的最初的 CT 系統，這些系統對 16 層的需求最高。所以，我們對我們的客戶（中國的 CT 客戶）的數量、需求和進展感到滿意和高興。

And on the detector side, frankly, the -- we -- last year, we had lost a chunk of the radiographic detectors that we pulled out from because it didn't make sense for us to sell those, given the tariff situation. The production that we've just begun in China are for those radiographic detectors, and it will take a bit of time for us to get back in the group with those detectors, but the initial shipments have begun. We've shipped prototypes to customers. They're really happy with it. These are new models, great detectors, and I'm optimistic that going forward, we will start recouping -- regaining our position in China with the radiographic detectors.

在探測器方面，坦白說，我們去年失去了大部分放射線探測器，我們把它們撤掉了，因為考慮到關稅情況，我們出售這些探測器沒有意義。我們剛在中國開始生產這些射線探測器，我們需要一些時間才能回到這些探測器的生產組，但首批發貨已經開始。我們已將原型發送給客戶。他們真的很高興。這些都是新型號、出色的探測器，我樂觀地認為，展望未來，我們將開始恢復——透過射線照相探測器重新奪回我們在中國的地位。

Now we've continued to do steady business in China with some of our high-end dynamic detectors for both Chinese OEMs and the global OEMs. And recall, we also sell industrial detectors in China, so that has continued on with -- as business as usual. We're happy now to add some incremental business in China with these new dental OEMs. So we're very excited that there are dental OEMs that are introducing the high-end applications. And we -- as we mentioned, we signed an agreement with one of them for a multiyear agreement, and we are optimistic that this will be a good one for us to continue on with other dental OEMs in China.

現在，我們繼續在中國開展穩定的業務，為中國 OEM 廠商和全球 OEM 廠商提供一些高階動態探測器。回想一下，我們還在中國銷售工業探測器，所以我們的業務一切如常。我們現在很高興能夠透過這些新的牙科 OEM 在中國增加一些增量業務。因此，我們非常高興看到牙科 OEM 正在推出高端應用。正如我們所提到的，我們與其中一家公司簽署了多年期協議，我們樂觀地認為，這將是我們繼續與中國其他牙科 OEM 合作的良好協議。

Ladies and gentlemen, we have reached the end of the question-and-answer session, and I would like to turn the call back to Mr. Howard Goldman for closing remarks.

女士們、先生們，問答環節已經結束，我想請霍華德‧戈德曼先生致閉幕詞。

Thank you for your questions and participating in our earnings conference call for the first quarter of fiscal year 2020. A replay of this conference call will be available through February 25, 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. Replay conference call access code is 13698110. Thank you, and goodbye.

感謝您提出問題並參加我們的 2020 財年第一季財報電話會議。本次電話會議的重播將持續到 2 月 25 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 進行觀看。S.地點。重播電話會議接入碼為13698110。謝謝，再見。

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

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。