博通 (AVGO) 2021 Q2 法說會逐字稿

Welcome to Broadcom Inc.'s Second Quarter Fiscal Year 2021 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Director of Investor Relations of Broadcom Inc. Please go ahead.

歡迎參加 Broadcom Inc. 2021 財年第二季財務業績電話會議。現在，我想將電話轉給博通公司投資者關係總監 Ji Yoo，以進行開場發言和介紹。請繼續。

Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; Tom Krause, President, Infrastructure Software Group; and Charlie Kawwas, Chief Operating Officer.

謝謝接線員，大家下午好。與我一起參加今天電話會議的還有總裁兼執行長 Hock Tan；克斯汀‧斯皮爾斯，財務長； Tom Krause，基礎架構軟體集團總裁；和首席營運長查理·卡瓦斯 (Charlie Kawwas)。

Broadcom also distributed a press release and financial tables after the market closes, describing our financial performance for the second quarter of fiscal year 2021. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com.

博通還在收盤後發布了一份新聞稿和財務表格，描述了我們 2021 財年第二季的財務表現。如果您沒有收到副本，您可以從 Broadcom 網站 Broadcom.com 的投資者部分獲取資訊。

This conference call is being webcast live, and a recording will be available via telephone playback for 1 week. It will also be archived in the Investors section of our website at broadcom.com.

本次電話會議正在進行網路直播，錄音將透過電話播放 1 週。它還將存檔在我們網站 Broadcom.com 的投資者部分。

During the prepared comments, Hock and Kirsten will be providing details of our second quarter fiscal year 2021 results, guidance for our third quarter as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments.

在準備評論期間，Hock 和 Kirsten 將提供 2021 財年第二季業績的詳細資訊、第三季的指導以及有關商業環境的評論。我們將在準備好的評論結束後回答問題。

Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis. A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release. Comments made during today's call will primarily refer to our non-GAAP financial results.

請參閱我們今天的新聞稿以及我們最近向美國證券交易委員會提交的文件，以了解可能導致我們的實際結果與本次電話會議中所做的前瞻性陳述存在重大差異的具體風險因素的資訊。除了美國公認會計原則報告外，博通還根據非公認會計原則報告某些財務指標。今天新聞稿所附的表格中包含了公認會計原則和非公認會計原則措施之間的調節。今天電話會議期間發表的評論將主要涉及我們的非公認會計準則財務表現。

I'll now turn the call over to Hock.

我現在將把電話轉給霍克。

Thank you, Ji, and thank you, everyone, for joining us today. In Q2, semiconductor solutions revenue grew a strong 20% year-on-year to $4.8 billion, with infrastructure software revenue growing an expected 4% year-on-year to $1.8 billion. Consolidated net revenue was of $6.6 billion, up 15% year-on-year.

謝謝你，吉，也謝謝大家今天加入我們。第二季度，半導體解決方案營收年增 20%，達到 48 億美元，基礎設施軟體營收預計年增 4%，達到 18 億美元。綜合淨收入為66億美元，年增15%。

Now on the last earnings call we had, we talked about how strong broadband and networking bookings were from hyper cloud and service providers, even as wireless was declining seasonally. In Q2 just passed, not only do we see broadband and networking sustaining, we now see a recovery of bookings from enterprise. And on the supply side, hourly times have now stabilized, but the volume of bookings we are experiencing today continues to grow. Now we intend to meet such demand, and in doing so, we maintain our disciplined process of carefully reviewing our backlog, identifying real end user demand and delivering products accordingly.

現在，在我們舉行的最後一次財報電話會議上，我們談到了超級雲端和服務供應商的寬頻和網路預訂量有多麼強勁，儘管無線業務正在季節性下降。在剛剛過去的第二季度，我們不僅看到寬頻和網路的持續發展，而且現在我們還看到企業預訂的恢復。在供應方面，每小時的時間現在已經穩定，但我們今天經歷的預訂量仍在繼續增長。現在我們打算滿足這樣的需求，為此，我們保持嚴格的流程，仔細審查我們的積壓工作，確定真正的最終用戶需求並相應地交付產品。

With that as context, let me provide you more color. Starting with broadband, which interestingly now is going through somewhat of a renaissance. Revenue grew 28% year-on-year and represented 18% of our semiconductor revenue. As discussed during our Broadband Teach-In, the work, learn and play from home environment is driving global service providers to expand connectivity to the home.

以此為背景，讓我為您提供更多色彩。從寬頻開始，有趣的是，寬頻現在正在經歷某種程度的復興。營收年增 28%，占我們半導體收入的 18%。正如我們在寬頻宣講會上所討論的那樣，家庭環境中的工作、學習和娛樂正在推動全球服務提供者擴展家庭連接。

In our broadband carrier access business, PON fiber or otherwise known as PON grew over 40% year-on-year, mostly with existing generation 2.5G. But with next-generation 10G PON representing only 30% today, there is significant room for content growth as 10G PON deploys over the next few years. Not to be outdone by fiber, cable operators in the U.S. are driving deployment of DOCSIS 3.1 cable modems, we saw an 80% year-on-year growth, and planning to accelerate the upgrade to next-generation DOCSIS 4.0. Our broadband technologies, in fact, are enabling service providers to complement the 5G they deliver -- to deliver best experience for consumers.

在我們的寬頻業者接取業務中，PON光纖或其他稱為PON的業務年增超過40%，其中大部分是現有的2.5G。但由於目前新一代 10G PON 僅佔 30%，因此隨著未來幾年 10G PON 的部署，內容還有很大的成長空間。光纖也不甘示弱，美國有線營運商正在推動DOCSIS 3.1有線數據機的部署，年成長80%，並計劃加速升級到下一代DOCSIS 4.0。事實上，我們的寬頻技術使服務提供者能夠補充他們提供的 5G，從而為消費者提供最佳體驗。

Now overlaying all this last-mile broadband upgrades, we see a demand surge for the latest WiFi 6 and 6E technology to enable the last 100 feet of connectivity in homes. Broadcom has emerged as the clear market and technology leader in WiFi for access gateways to the home and to enterprises, with over 50 million ports shipped in Q2 alone or a year-on-year revenue growth of some 30%.

現在，覆蓋所有最後一英里的寬頻升級，我們看到對最新 WiFi 6 和 6E 技術的需求激增，以實現家庭最後 100 英尺的連接。Broadcom 已成為家庭和企業接入網關 WiFi 領域明顯的市場和技術領導者，僅第二季度就出貨了超過 5,000 萬個端口，營收年增約 30%。

On the other hand, as we might expect, with the push into higher-performance fiber, copper DSL, digital subscriber line deployments for wireline broadband, declined 30% year-on-year. And with a lack of live events during the pandemic, video declined 20%. But with the onset of 5G, service providers are competing for subscribers, leading to technology upgrades globally in fiber, cable and WiFi connectivity. We're seeing this investment cycle in broadband extending into 2022. And so for Q3, we expect to sustain double-digit year-on-year revenue growth in this segment.

另一方面，正如我們所預期的那樣，隨著高性能光纖、銅線DSL、有線寬頻數位用戶線路部署的推進，比去年同期下降了30%。由於疫情期間缺乏現場活動，影片數量下降了 20%。但隨著 5G 的到來，服務供應商正在爭奪用戶，導致全球光纖、電纜和 WiFi 連接方面的技術升級。我們預期寬頻投資週期將延續至 2022 年。因此，對於第三季度，我們預計該領域的收入將保持兩位數的同比增長。

Moving on to networking. Networking grew 10% year-on-year and represented 32% of our semiconductor revenue. We experienced tailwinds from hyper cloud and telcos, partially offset by headwinds from enterprise. Revenue for switching was up 30% year-on-year, primarily driven by the strong ramp of our Trident and Tomahawk 3 for over 400G platforms and hyper cloud data centers.

繼續討論網路。網路業務年增 10%，占我們半導體營收的 32%。我們經歷了來自超級雲端和電信公司的順風，但部分被企業的逆風所抵消。交換收入年增 30%，主要是由於我們針對超過 400G 平台和超雲資料中心的 Trident 和 Tomahawk 3 的強勁增長推動的。

In the network, service providers have been investing in 5G infrastructure worldwide, where the demand for Jericho2 at the metro core and Qumran at the edge have been robust with revenue up 35% year-on-year. On the other hand, enterprise demand in networking has not yet recovered, still down double digits from a year ago. But as we go into the back half of the year, we expect to see hyper cloud upgrading to our next-generation Trident, Tomahawk 4 or over 800G switching platforms and sustained strength by service providers in network routing. And accordingly, in Q3, we expect networking revenue to maintain the trend of low double-digit growth year-on-year. We found the complete recovery of enterprise demand.

在網路方面，全球服務供應商一直在投資5G基礎設施，其中城域核心的Jericho2和邊緣的Qumran需求強勁，營收年增35%。另一方面，企業對網路的需求尚未恢復，仍比一年前下降兩位數。但隨著進入今年下半年，我們預計超級雲端將升級到下一代 Trident、Tomahawk 4 或超過 800G 的交換平台，以及服務供應商在網路路由方面的持續實力。因此，我們預期第三季網路營收將維持年比低位兩位數成長的趨勢。我們發現企業需求完全恢復。

Speaking of enterprise, let's talk about server storage connectivity, which represented approximately 12% of semiconductor revenue. This end market is largely driven by enterprise. And in line with our guidance, revenue was down 16% year-on-year. You may recall, however, in Q1, this was down 22%. And as the economy starts to recover, we are seeing an improving demand trajectory. And so in Q3, we expect server storage connectivity revenue to be down high single-digit percentage year-on-year.

說到企業，我們來談談伺服器儲存連接，它約佔半導體收入的 12%。這個終端市場主要是由企業驅動的。根據我們的指引，營收年減 16%。然而，您可能還記得，第一季下降了 22%。隨著經濟開始復甦，我們看到需求軌跡正在改善。因此，在第三季度，我們預計伺服器儲存連線收入將年減高個位數百分比。

With the launch of Intel's Ice Lake, AMD's Milan as well as future ARM-based servers, this space is turning quite exciting and innovative for us, both in hardware and software. And we will provide, obviously, more color during our next teach-in in July on our server storage business.

隨著英特爾 Ice Lake、AMD Milan 以及未來基於 ARM 的伺服器的推出，這個領域在硬體和軟體方面都對我們來說變得非常令人興奮和創新。顯然，我們將在 7 月的下一次宣講會上就我們的伺服器儲存業務提供更多的資訊。

Moving on to wireless. Q2 revenue was down 16% sequentially, reflecting seasonality, with wireless representing 34% of semiconductor revenue mix. Nonetheless, on a year-over-year basis, wireless revenue was up 48%, reflecting a very favorable compare year-on-year as well as content increases in FBAR and WiFi. In Q2, we were able to ship more than we had originally planned. And accordingly, in Q3, we expect the growth trend in wireless revenue to sustain but at over 30% year-on-year.

轉向無線。第二季營收季減 16%，反映出季節性因素，無線業務佔半導體收入組合的 34%。儘管如此，無線收入年增了 48%，反映出非常有利的同比比較以及 FBAR 和 WiFi 內容的增加。在第二季度，我們的發貨量超出了最初的計劃。因此，我們預期第三季無線營收的成長趨勢將持續，但年增幅將超過30%。

Finally, industrial and other represented approximately 4% of Q2 semiconductor solutions revenue. Resales grew 34% year-over-year in Q2, driven by recovery in automotive and China. Inventory in the channel continues to deplete as what we shipped in the distributors grew only 23%. Turning to Q3, we expect resales to continue to grow double-digit percentage on a year-on-year basis.

最後，工業和其他領域約佔第二季半導體解決方案收入的 4%。在汽車和中國復甦的推動下，第二季轉售量年增 34%。由於我們在經銷商的出貨量僅成長了 23%，因此通路中的庫存持續減少。談到第三季度，我們預計轉售量將繼續同比增長兩位數百分比。

Summary, Q2 semiconductor solutions segment was up 20% year-on-year. And in Q3, we expect revenue growth year-over-year to be of a similar amount.

總結，第二季半導體解決方案業務年增20%。在第三季度，我們預計營收年增將達到類似水準。

Turning to software. In Q2, infrastructure software produced another quarter of steady and predictable results as revenue grew 4% year-on-year and represented 27% of total revenue. Now if we exclude professional services, our enterprise software revenue grew 7% actually year-over-year. And a further indicator of the quality and sustainability of our products, over 90% of our software bookings represented recurring subscription and maintenance with an average contract life span from core customers pretty much close to 3 years. We continue to believe our infrastructure software business is on track to grow at or better than mid-single-digit percentage year-over-year, which is again what we expect to see in Q3.

轉向軟體。第二季度，基礎設施軟體又創造了一個穩定且可預測的季度業績，營收年增 4%，佔總營收的 27%。現在，如果我們排除專業服務，我們的企業軟體收入實際上比去年同期成長了 7%。我們的產品品質和永續性的進一步指標是，超過 90% 的軟體預訂代表定期訂閱和維護，核心客戶的平均合約期限幾乎接近 3 年。我們仍然相信我們的基礎設施軟體業務預計將實現同比中個位數百分比或更好的成長，這也是我們預計在第三季度看到的情況。

Summarizing this, demand continues to be robust, and so our Q2 consolidated net revenue grew 15% year-over-year. We expect the momentum to sustain in Q3 and total revenue to be at $6.75 billion or up 16% year-on-year.

綜上所述，需求持續強勁，因此我們第二季的綜合淨收入年增 15%。我們預計第三季這股勢頭將持續，總營收將達到 67.5 億美元，年增 16%。

With that, let me now turn the call over to Kirsten.

現在讓我把電話轉給克爾斯滕。

Thank you, Hock. Let me now provide additional detail on our financial performance. Revenue was $6.6 billion for the quarter, up 15% from a year ago. Gross margins were a record 75% of revenue in the quarter and up approximately 180 basis points year-on-year. Operating expenses were $1.2 billion, down 1% year-on-year, driven by lower SG&A, offset in part by increased investment in R&D. Operating income for the quarter was $3.8 billion and was up 25% from a year ago. Operating margin was 58% of revenue, up approximately 470 basis points year-on-year. Adjusted EBITDA was $4 billion or 60% of revenue. This figure excludes $133 million of depreciation.

謝謝你，霍克。現在讓我提供有關我們財務業績的更多詳細資訊。該季度營收為 66 億美元，比去年同期成長 15%。該季度毛利率創歷史新高，佔營收的 75%，較去年同期成長約 180 個基點。營運費用為 12 億美元，年減 1%，這是由於 SG&A 較低，但部分被研發投資增加所抵銷。該季度營業收入為 38 億美元，比去年同期成長 25%。營業利益率為營收的58%，年增約470個基點。調整後 EBITDA 為 40 億美元，佔營收的 60%。這一數字不包括 1.33 億美元的折舊。

Now a review of the P&L for our 2 segments. Revenue for our semiconductor solutions segment was $4.8 billion and represented 73% of total revenue in the quarter. This was up 20% year-on-year. Gross margins for our semiconductor solutions segment were approximately 69%, up 290 basis points year-on-year, driven primarily by higher product margins. This margin improvement comes from content growth as we deploy more next-generation products in broadband and networking end markets. Operating expenses were $795 million in Q2, up approximately 2% year-on-year as we invested in R&D and streamlined SG&A. R&D was $702 million in Q2, up approximately 6% year-on-year. Q2 operating margins increased to 53%, up 580 basis points year-on-year. So while semiconductor revenue was up 20%, operating profit grew 35%.

現在回顧我們兩個部門的損益表。我們的半導體解決方案部門的收入為 48 億美元，佔本季總收入的 73%。這一數字同比增長了 20%。我們的半導體解決方案部門的毛利率約為 69%，較去年同期成長 290 個基點，主要得益於產品利潤率的提高。隨著我們在寬頻和網路終端市場部署更多下一代產品，利潤率的提高來自於內容的成長。第二季的營運費用為 7.95 億美元，年成長約 2%，因為我們投資於研發並簡化了 SG&A。第二季研發費用為 7.02 億美元，較去年同期成長約 6%。第二季營業利益率增至 53%，較去年同期成長 580 個基點。因此，雖然半導體收入成長了 20%，但營業利潤成長了 35%。

Moving to the P&L for our infrastructure software segment. Revenue for infrastructure software was $1.8 billion and represented 27% of revenue. This was up 4% year-on-year. Gross margins for infrastructure software were 90% in the quarter, up 100 basis points year-over-year. Operating expenses were $355 million in the quarter, down 8% year-on-year as we've completed the integration of Symantec. R&D spending at $228 million is up 1% year-over-year. Operating profit was up 10% year-on-year on top line growth of 4%. Operating margin was 70% in Q2, up 360 basis points year-over-year.

轉向我們的基礎設施軟體部門的損益表。基礎設施軟體收入為 18 億美元，佔收入的 27%。較去年同期成長 4%。該季度基礎設施軟體毛利率為 90%，較去年同期成長 100 個基點。本季營運費用為 3.55 億美元，年減 8%，因為我們完成了對賽門鐵克的整合。研發支出為 2.28 億美元，年增 1%。營業利潤年增 10%，營收成長 4%。第二季營業利益率為 70%，較去年同期成長 360 個基點。

Moving to cash flow. Free cash flow in the second quarter was $3.4 billion, representing 52% of revenue. Days sales outstanding were 33 days in the second quarter compared to 51 days a year ago. We ended the second quarter with inventory of $1 billion, an increase of $52 million or 5% from the end of the prior quarter. We should also note in Q2, we spent $126 million on capital expenditures.

轉向現金流。第二季自由現金流為34億美元，佔營收的52%。第二季的應收帳款天數為 33 天，去年同期為 51 天。第二季末我們的庫存為 10 億美元，比上一季末增加了 5,200 萬美元，即 5%。我們還應該注意到，在第二季度，我們花了 1.26 億美元的資本支出。

On the financing front, we extended our weighted average debt maturity to approximately 10 years from 9 by exchanging notes. Our weighted average coupon decreased about 5 basis points to 3.7%. During the quarter, we made $1.5 billion in payments on debt obligations, ending the quarter with $9.5 billion of cash and $40.4 billion of total debt, of which $278 million is short term.

在融資方面，我們透過交換票據將加權平均債務期限從 9 年延長至約 10 年。我們的加權平均票息率下降約 5 個基點至 3.7%。本季度，我們支付了 15 億美元的債務，季末現金為 95 億美元，總債務為 404 億美元，其中 2.78 億美元為短期債務。

Turning to capital allocation. In the quarter, we paid stockholders $1.6 billion of cash dividends. We also paid $461 million in withholding taxes due on vesting of employee equity, resulting in the elimination of approximately 1 million AVGO shares. We ended the quarter with 410 million outstanding common shares and 450 million diluted shares. Note that we expect the diluted share count to be 449 million in Q3.

轉向資本配置。本季度，我們向股東支付了 16 億美元的現金股利。我們也支付了 4.61 億美元的員工股權歸屬預扣稅，導致約 100 萬股 A​​VGO 股票被註銷。本季末，我們擁有 4.1 億股已發行普通股和 4.5 億股稀釋股。請注意，我們預計第三季稀釋後的股票數量將為 4.49 億股。

The Board of Directors has approved a quarterly cash dividend on our common stock of $3.60 per share in Q3. Based on current trends and conditions, our guidance for the third quarter of fiscal 2021 is for consolidated revenues to be $6.75 billion and adjusted EBITDA of approximately 60% of projected revenue.

董事會已批准第三季普通股每股 3.60 美元的季度現金股利。根據當前趨勢和條件，我們對 2021 財年第三季的指導是合併收入為 67.5 億美元，調整後 EBITDA 約為預期營收的 60%。

That concludes my prepared remarks. Operator, please open up the call for questions.

我準備好的發言就到此結束。接線員，請撥打電話詢問問題。

(Operator Instructions) Our first question comes from the line of John Pitzer of Credit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸銀行的 John Pitzer。

Hock, I've got 2 quick ones. First, within your wireless business, you've been able to sign long-term contracts with your key customer, and I'd argue that's benefited both you and them. It's given you the confidence to invest in the business properly and then the confidence that you'll have supply for them when they need it. I'm just kind of curious, given how tight things are elsewhere in the semi business, have you been able to parlay this into any longer-term customer contracts? And what implications might that have as we all start to worry about the "end of cycle"?

霍克，我有兩個快速的。首先，在您的無線業務中，您已經能夠與主要客戶簽訂長期合同，我認為這對您和他們都有利。它讓您有信心正確投資業務，然後有信心在他們需要時為他們提供供應。我只是有點好奇，考慮到半成品行業其他地方的情況有多緊張，您是否能夠將其運用到任何長期客戶合約中？當我們都開始擔心「週期結束」時，這可能會產生什麼影響？

And then secondly, just on your comments about enterprise recovery, can you elaborate on that? Was that specifically a storage comment? Or is that also a networking comment?

其次，關於您對企業復甦的評論，您能否詳細說明一下？這是專門針對儲存的評論嗎？還是這也是網路評論？

Okay. Let me take the question one at a time. On arrangements with long-term agreements, John, this is something we have been thoughtfully, carefully putting in place with our core strategic customers. We just don't go do it as if it's commoditized. We're very thoughtful about doing it, and we do it in very specific areas where we know for sure that the technology is fairly, fairly difficult, complex to manage and which requires a substantial amount of R&D spending. And we've been doing it for a while now with strategic customers in core businesses. So we just don't do it across the board.

好的。讓我一次一個地回答這個問題。關於長期協議的安排，約翰，這是我們與我們的核心策略客戶深思熟慮、仔細落實的。我們只是不會像商品化一樣去做。我們對此深思熟慮，並且在非常具體的領域進行，我們確信該技術相當非常困難，管理起來很複雜，並且需要大量的研發支出。我們與核心業務的策略客戶這樣做已經有一段時間了。所以我們只是不全面這樣做。

And what you pointed out is very, very correct. It's a mutual -- then it's a structure, it's an agreement with mutual benefit. We have the confidence to invest in R&D to make CapEx capacity investment. And in return, we offer the best leading-edge technology in specific areas in a timely manner to our critical customers. So yes, we have been doing it, and we will continue to thoughtfully do it in a very appropriate manner.

而且你指出的非常非常正確。這是一個相互的——那麼它是一個結構，它是一個互惠互利的協議。我們有信心投資研發以進行資本支出產能投資。作為回報，我們及時向關鍵客戶提供特定領域最好的尖端技術。所以，是的，我們一直在這樣做，我們將繼續以非常適當的方式深思熟慮地這樣做。

On the second part, okay, which is -- if you could repeat the question, John? Let me be sure...

關於第二部分，好吧，那就是──約翰，你能重複這個問題嗎？讓我確定一下...

Yes, just elaborate a little bit on your comments about an enterprise recovering brewing. Was that mostly within storage? Or was it networking? So I'm a little bit surprised, given some of Cisco's comments, that you're not a little bit more positive on the enterprise network space.

是的，稍微詳細說明一下您對企業復甦醞釀的評論。大部分是在儲存中嗎？還是網路？因此，考慮到思科的一些評論，我感到有點驚訝，因為您對企業網路領域的態度並沒有更加積極。

It is across -- it is for enterprise spending. It is -- I won't say across the board necessarily and trying to define enterprise very appropriately. As you noticed in my comments, we've classified service providers, telcos as a separate animal, different from traditional enterprise. And so -- and as I pointed out, based on broadband, telcos have been investing big time. Service providers, telcos have been investing in a huge manner over the past 12 months.

它是跨界的——它是為了企業支出。我不會一概而論，並試圖非常恰當地定義企業。正如您在我的評論中註意到的，我們將服務提供者、電信公司歸類為獨立的動物，與傳統企業不同。因此，正如我所指出的，電信公司在寬頻方面投入了大量資金。服務供應商、電信公司在過去 12 個月中進行了大量投資。

But traditional enterprise, the companies, whether it's the banks, the manufacturing sector, various retail customers, airlines, examples, no, these guys are in a recovery mode. And not surprising, we are seeing pandemic easing like, say, in North America. And as it eases, we see a step-up in spending. But we do not see spending spiking up.

但傳統企業、公司，無論是銀行、製造業、各種零售客戶、航空公司，例如，不，這些人正處於復甦模式。毫不奇怪，我們看到大流行有所緩解，例如在北美。隨著情勢的緩解，我們看到支出增加。但我們並沒有看到支出激增。

Now obviously, if you look at some businesses that -- like warehouses that require WiFi networks, campus networking environment, you do see that improving. But to say across the board, all enterprises are just spending money, not -- we are still seeing -- and as I showed that in server storage connectivity, we still see year-on-year, things are not up to what it was a year ago. And that applies not just on data centers, namely compute. It also applies to data centers in enterprise, campus environment. We see less of that but across the board.

現在顯然，如果你看看一些企業——例如需要 WiFi 網路的倉庫、校園網路環境，你確實會看到這種情況有所改善。但總的來說，所有企業都只是在花錢，而不是——我們仍然看到——正如我所展示的，在伺服器儲存連接方面，我們仍然看到，與去年同期相比，情況並沒有達到原來的水平一年前。這不僅適用於資料中心，即計算中心。它也適用於企業、校園環境中的資料中心。我們看到的情況較少，但總體而言。

Our next question comes from the line of Harlan Sur of JPMorgan.

我們的下一個問題來自摩根大通的哈蘭‧蘇爾。

Great job on the quarterly execution, strong margins and free cash flow generation. Hock, I think as you mentioned, we're still in the early phases of the 400-gig networking upgrade cycle with your hyperscale and telco customers. I know 2 of your big cloud typing customers have already started the upgrade. It looks like there's another 2 more that are going to start the upgrade cycle here in the second half of this year and quite a bit more next year.

在季度執行、強勁的利潤和自由現金流方面表現出色。Hock，我認為正如您所提到的，我們與您的超大規模和電信客戶仍處於 400 千兆網路升級週期的早期階段。我知道你們的 2 個大型雲端打字客戶已經開始升級。看起來還有另外 2 個將在今年下半年開始升級週期，明年還會有更多。

And then as you mentioned, you still have Tomahawk 4 ahead of you. So given the extended visibility that the team has with the strong backlog, do you see the cloud and telco upgrade cycle and inevitable recovery in enterprise driving continued year-over-year growth in networking into next year?

然後如你所提到的，你面前還有戰斧 4。因此，考慮到該團隊對大量積壓工作的長期可見性，您是否認為雲端和電信升級週期以及企業不可避免的復甦會推動明年網路的持續同比增長？

I don't -- we don't really try to guide more than 1 quarter at a time, first of all, because we're not that smart to be able to do that. But on a broader trajectory, it does appear fairly much the trend, as we said, which is the hyper cloud guidance will push out in the second half, as I indicated, on the data center side on Tomahawk 4, the 800G platform. In fact, we have substantial backlog for delivering in the back half of the year for Tomahawk 4.

我不——首先，我們並沒有真正嘗試一次指導超過一個季度，因為我們沒有那麼聰明，無法做到這一點。但從更廣泛的軌跡來看，正如我們所說，超級雲指導將在下半年推出，正如我指出的，在 Tomahawk 4（800G 平台）的資料中心方面。事實上，我們有大量的積壓工作需要在今年下半年交付戰斧 4。

So we see that going on, and we -- you're right, we see the recovery step-by-step of the enterprise, though I do not see that really taking off in terms of reaching the level it was a year ago, probably until 2022. But what we do not know for sure is would that give pause to hyper cloud in their spending. And that part, I'm just putting everything on the table. We're not sure whether hyper cloud spending will necessarily continue into 2022. We sensed it would. We see some of the backlog.

所以我們看到這種情況正在發生，我們——你是對的，我們看到企業正在逐步復甦，儘管我沒有看到它真正起飛達到一年前的水平，可能要到 2022 年。但我們不確定這是否會導致超級雲端的支出暫停。這部分，我只是把一切都擺在桌面上。我們不確定超級雲端支出是否一定會持續到 2022 年。我們感覺到會的。我們看到一些積壓的情況。

But as enterprise steps up, one really never knows if the economy starts to rebalance in that side. But what we do see in broadband is service providers, the telcos in particular are, for sure, upgrading. And here, this is the longer cycle of upgrade and we see them upgrade. And we see the backlog associated with it through 2022.

但隨著企業的崛起，人們真的永遠不知道經濟是否開始在這方面重新平衡。但我們在寬頻領域確實看到的是服務供應商，尤其是電信公司，肯定正在升級。在這裡，這是更長的升級週期，我們看到它們升級。我們看到到 2022 年與之相關的積壓工作。

Our next question comes from Ross Seymore of Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西莫爾。

Congrats on the strong results. Hock, I want to dive a little bit into the lead time commentary that you had with that stabilizing. Two quarters ago, you talked about the size of the book, the backlog you had. Last quarter, you talked about the year-over-year and even, in some instances, the sequential growth being so large in bookings. And now we're hearing that the lead times are stabilizing. People could interpret that a bunch of different ways as far as the implication on the demand side of the equation or that supply is catching up to it, or frankly, people are just ordering so far out that they're not willing to extend that any further.

祝賀取得強勁的成果。霍克，我想深入探討您對穩定期的評論。兩個季度前，您談到了書的大小以及積壓的訂單。上個季度，您談到了同比情況，甚至在某些情況下，預訂量的環比增長如此之大。現在我們聽說交貨時間正在穩定。人們可以用多種不同的方式解釋這一點，即對等式需求方的影響或供應正在趕上它，或者坦率地說，人們只是訂購得太遠，以至於他們不願意延長任何時間。 。

So I was hoping to double-click on that lead time commentary and get your feelings as to why it's stabilizing. And do you take that as a positive or a negative?

因此，我希望雙擊該交付時間評論，了解您對它為何穩定的感受。您認為這是積極的還是消極的？

I'll just make a comment to say we have stretched out our lead times so far, Ross. Good point you bring up -- and I'm glad you're bring it up to give me a chance to clarify a set of quick comments I made in my opening remarks that we are comfortable at the lead times we are on. And so what it is, is customers -- our customers are comfortable seeing our lead time now.

我只想發表評論說，到目前為止，我們已經延長了交貨時間，羅斯。您提出的觀點很好，我很高興您提出來，讓我有機會澄清我在開場白中發表的一系列快速評論，即我們對目前的交貨時間感到滿意。所以，重要的是客戶——我們的客戶現在很樂意看到我們的交貨時間。

But one we have found rather remarkable over the last quarter is that even if our lead times remain stable, consistent, the volume of bookings we receive every week continues to grow. I made that comment and thanks for the opportunity to make that -- reiterate that point. Same lead time, stable for last 3 months, but the booking rate we are seeing every week continues to step up.

但我們在上一季發現相當引人注目的是，即使我們的交貨時間保持穩定、一致，我們每週收到的預訂量仍在繼續增長。我發表了這一評論，並感謝有機會發表這一評論——重申這一點。交貨時間相同，過去 3 個月保持穩定，但我們每週看到的預訂率都在持續上升。

Our next question comes from Vivek Arya of Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的 Vivek Arya。

Hock, I had another one on the supply situation. If there were no supply constraints, how fast would your semiconductor business be growing? And kind of part B of that is, what is driving the shortages for you right now? And what are you doing to resolve it? And do you have any kind of gut feel on when the supply situation will become normal?

霍克，我還有一份關於供應情況的報告。如果沒有供應限制，您的半導體業務成長速度有多快？B 部分是，現在是什麼導致了你們的短缺？你正在做什麼來解決這個問題？您對供應情況何時恢復正常有什麼直覺嗎？

One of the first -- I'll answer the first and the last. In between, I'm not sure. But on the first, it's -- we will not put ourselves in a situation nor should anyone do it because there's also a certain amount. You do not -- we do not want our customers, and I don't think any of our peers want to do that either, to buy, to hoard, to create buffers, to buy ahead of what they need.

第一個－我會回答第一個和最後一個。在這之間，我不確定。但首先，我們不會讓自己陷入困境，任何人也不應該這樣做，因為也有一定數量。你不——我們不想要我們的客戶，我認為我們的任何同行也不想這樣做，購買、囤積、創造緩衝、提前購買他們需要的東西。

So we try to mesh, identify, as I said, and go through a process of rigorously understanding true end demand. In other words, we look for drop date quantities as the term is used in the industry. And we ship to those drop date quantities and maybe a little more. And what you see today is the true growth rate we are representing. We are not hiding what could have been. There's no what could have been. We're shipping to what we believe the customers consider as the true real demand.

因此，正如我所說，我們嘗試進行整合、識別，並經歷一個嚴格理解真實最終需求的過程。換句話說，我們尋找的是業界使用的術語「投放日期數量」。我們會按交貨日期發貨，甚至可能更多。您今天看到的是我們所代表的真實成長率。我們並沒有隱藏可能發生的事情。沒有什麼可以發生的。我們正在運送我們認為客戶認為真正的實際需求的產品。

Now having said that, we may be delivering -- doing JIT, just-in-time. But nonetheless, we do try to fulfill what customer truly want just in a timely basis. And that still continues today, regardless of the size of the backlog we have, but this is really in that regard. And from our perspective, the challenges we have in the supply chain is a constant side challenge. It's to ensure that we get components, whether it's wafers, substrates, getting our products assembled, tested and any other small components on a timely basis to make sure that we can keep this thing running.

話雖如此，我們可能正在進行 JIT 準時交貨。但儘管如此，我們確實盡力及時滿足客戶真正想要的東西。無論我們的積壓量有多大，這種情況今天仍然在繼續，但這確實是在這方面。從我們的角度來看，我們在供應鏈中面臨的挑戰是一個持續的側面挑戰。這是為了確保我們及時獲得組件，無論是晶圓、基板、組裝、測試我們的產品以及任何其他小組件，以確保我們能夠保持這個東西運作。

And if you look at the size of our inventory versus the size of our cost of goods sold or revenue quarterly, you can see that we run pretty close to just-in-time through our entire supply chain. And we've been able to do it and sustain that. And so what we're reporting to you like 20% year-on-year growth on semiconductor components is, in our view, a pretty decent reflection what is truly end demand needs out there. All right.

如果您查看我們的庫存規模與銷售成本或季度收入的規模，您會發現我們整個供應鏈的運作非常接近準時制。我們已經能夠做到並維持這一點。因此，我們認為，我們向您報告的半導體元件 20% 的同比增長相當不錯地反映了真正的最終需求需求。好的。

The next question comes from Timothy Arcuri of UBS.

下一個問題來自瑞銀集團的提摩西·阿庫裡。

Hock, I guess I wanted to ask you what you think the long-term growth rate is of your semiconductor business. You're sort of trending to the high teens this year, but that's kind of due to easy comps and you have the compressed iPhone launch and the pull forward of some of these technologies due to the pandemic. So once this all sort of normalizes, what do you think is the right long-term growth rate for the business? Are you still thinking 5%? Or do you think maybe just given the strength of the bookings recently that it could be better than that?

Hock，我想我想問您認為您的半導體業務的長期成長率是多少。今年的趨勢有點高，但這是因為比較容易，而且 iPhone 的發佈時間被壓縮，並且由於大流行而推動了其中一些技術的發展。因此，一旦這一切恢復正常，您認為該業務的正確長期成長率是多少？你還在想5%嗎？或者您認為考慮到最近的預訂量，情況可能會更好嗎？

That's a hell of a question. And I'll tell you this. Right now, we're in the midst of a very strong demand, and that's also created perhaps, as we all know about, a severe imbalance between demand and supply, demand and supply works to catch up. But if you look at it long enough, I think the dynamics underlying -- the fundamental dynamics underlying the semiconductor industry hasn't yet changed. At least I haven't seen it change.

這是一個很糟糕的問題。我會告訴你這一點。目前，我們正處於非常強勁的需求之中，眾所周知，這可能也造成了供需之間的嚴重失衡，而供需正在努力迎頭趕上。但如果你觀察得夠久，我認為潛在的動態——半導體產業的基本動態尚未改變。至少我沒看到它有什麼改變。

So Tim, that's my -- that's the best answer I can give you, which is I haven't changed my thinking, if we look over the next 10 years, how this industry will behave because it is a relatively mature industry. It's evolutionary. Technology is still evolving, which is great for us. And it keeps getting better and better. But it's evolving. Disruption, as people like to say in this industry, is less of an event. It's evolutionary. And I have not seen anything that tells me there's a fundamental change.

所以提姆，這就是我能給你的最佳答案，那就是我沒有改變我的想法，如果我們展望未來 10 年，這個產業將如何表現，因為它是一個相對成熟的產業。這是進化的。科技仍在不斷發展，這對我們來說是一件好事。而且它一直在變得越來越好。但它正在發展。正如這個行業的人們常說的那樣，顛覆並不是事件。這是進化的。我還沒有看到任何東西告訴我有根本性的改變。

Our next question comes from Craig Hettenbach of Morgan Stanley.

我們的下一個問題來自摩根士丹利的克雷格·赫滕巴赫。

Hock, just given the ongoing strength in free cash flow and improved balance sheet, can you just talk about your thoughts on the M&A environment and also -- and/or buybacks, how you're thinking about cash deployment as you go forward?

霍克，鑑於自由現金流的持續強勁和資產負債表的改善，您能否談談您對併購環境以及/和/或回購的想法，以及您在未來如何考慮現金部署？

Yes, I'll take that one. This is Kirsten. Relative to capital allocation, first and foremost, we're dedicated to paying 50% of our free cash flows to our shareholders. And so that would be first. Secondly, M&A, if we can -- accretive M&A, it would be the second objective. Then thirdly, stock buybacks, and at the end, there would be debt repayments. So I think that's how we're looking at capital allocation in that order. There isn't anything yet on the M&A front that I can talk about. But if anything does come up, we'll let you know.

是的，我會接受那個。這是克爾斯滕。相對於資本配置，首先也是最重要的是，我們致力於將 50% 的自由現金流支付給股東。所以這是第一位的。其次，併購，如果可以的話——增值併購，這將是第二個目標。第三，股票回購，最後，還有債務償還。所以我認為這就是我們按順序看待資本配置的方式。關於併購方面我還沒有什麼可以談的。但如果有任何情況發生，我們會通知您。

Our next question comes from Blayne Curtis of Barclays.

我們的下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。

Just curious, a little more detail on the gross margin. It's a record gross margin. Any color on product or segment? And then I guess as you look forward here, if you could describe what you're still dealing with in terms of excess costs due to COVID and then how to think about it as enterprise comes back. Should that be additive to the gross margin?

只是好奇，關於毛利率的更多細節。這是創紀錄的毛利率。產品或細分市場有任何顏色嗎？然後我想，正如您在此展望的那樣，您是否可以描述一下您仍在處理因新冠疫情導致的超額成本，以及隨著企業恢復而如何考慮它。這應該會增加毛利率嗎？

I expect gross margin next quarter to be about the same as it was this quarter. And then as you know, at the end of the year, we're expecting wireless to come back in for the normal ramp that we have. And so the margins will come down a bit towards the end of the year. But at this point, I see us being able to sustain the margins that we experienced this quarter, mostly coming from networking and broadband.

我預計下季度的毛利率將與本季大致相同。如您所知，到今年年底，我們預計無線網路將恢復正常。因此，到今年年底，利潤率將會略有下降。但目前，我認為我們能夠維持本季的利潤，主要來自網路和寬頻。

Blayne, at the risk of perhaps repeating ourselves -- myself too much from past conversations that I had with you -- with all you guys, our gross margin has this natural trend of continuing to keep expanding year-on-year, not necessarily quarter-on-quarter but -- sequentially as much as year-on-year, simply because we tend to have a chance to go to a new product life -- product new -- next-generation product across some of our franchise products. And it's a combination of all this.

布萊恩，冒著可能重複自己的風險——我自己在過去與你們的談話中太多了——對你們所有人來說，我們的毛利率有這種自然趨勢，即繼續逐年增長，不一定是季度增長-按季度但是 -連續與同比一樣多，僅僅是因為我們傾向於有機會進入新的產品生命 - 產品新 - 我們的一些特許經營產品的下一代產品。這是所有這些的結合。

So the natural growth of -- expansion of gross margin for our business, especially in the semi side -- particularly in the semi side, which I assume your question is related to, Blayne is, as I've always said, we have a gross margin expansion range of 50 to 150 basis points year-by-year. And it's an average across our 24, 25 different -- well, I should take out software, just hardware, about 20 or so different product lines, each with a different product life cycle and each going to its new generation product each time. Because as you know, each time we come to a new generation product, we get a lift in margins, in product margins, which translates to gross margin.

因此，我們業務毛利率的自然增長，特別是在半成品方面，尤其是在半成品方面，我認為您的問題與此相關，布萊恩，正如我一直說的那樣，我們有一個毛利率同比擴張幅度為50至150個基點。這是我們24、25 個不同產品的平均值——好吧，我應該拿出軟體，只是硬件，大約20 個左右不同的產品線，每個產品線都有不同的產品生命週期，並且每次都會推出新一代產品。因為如你所知，每次我們推出新一代產品時，我們的利潤率、產品利潤率（即毛利率）都會有所提高。

So it's not unusual to see us go to the high end of the range. And in this particular case, year-on-year, it's a bit more than the higher end of the range. And that's probably related to perhaps a separate mix of products in this environment because there's still puts and takes across our product range. Not everything is on fire. And based on that, we end up with higher than the normal 50 to 150 basis point range. But I don't think this is something that will go on forever. But you should expect that year after year, you will see that 50 to 150 basis point improvement in gross margin on the semiconductor side.

因此，看到我們達到該範圍的高端並不罕見。在這種特殊情況下，與去年同期相比，它略高於該範圍的高端。這可能與這種環境中的單獨產品組合有關，因為我們的產品系列中仍然存在放置和取出的情況。並非一切都著火了。基於此，我們最終得到的利率高於正常的 50 至 150 個基點範圍。但我不認為這種情況會永遠持續下去。但你應該預料到，年復一年，你會看到半導體方面的毛利率提高 50 到 150 個基點。

Our next question comes from Toshiya Hari of Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

I had 2 actually, 1 on wireless and 1 on the cost side. Hock, in terms of wireless, I guess in Q2, revenue came in better than expected. I just wanted to understand, was that primarily supply being better? Or were there dynamics on the demand side that came in better than expected? And then sticking to wireless, as you think about the next-generation product cycle at your largest customer, how are you thinking about the content opportunity at this point? You pretty much know what's locked in. If you can comment on RF and WiFi and touch -- and maybe compare and contrast this uplift in this cycle vis-a-vis past cycles, that would be super helpful.

實際上我有 2 個，1 個用於無線，1 個用於成本方面。Hock，就無線而言，我想第二季的營收比預期要好。我只是想了解，主要供應是否更好？或者需求方面的動態是否優於預期？然後堅持無線，當您考慮最大客戶的下一代產品週期時，您如何考慮此時的內容機會？你幾乎知道裡面鎖著什麼。如果您可以對射頻、WiFi 和觸控進行評論，或許還可以將本週期中的這種提升與過去的週期進行比較和對比，那將非常有幫助。

And then on the cost side, based on the comments you just made about gross margin expansion and some of Kirsten's comments, I doubt cost inflation is having impact on your business. But if you can speak to wafer pricing and substrates and what you're seeing from a cost perspective over the next year or so, that would be super helpful.

然後在成本方面，根據您剛剛對毛利率擴張的評論以及克爾斯滕的一些評論，我懷疑成本通膨是否會對您的業務產生影響。但如果您能談論晶圓定價和基板以及您在未來一年左右從成本角度看到的情況，那將非常有幫助。

All right. Let's start with the first one. And if I lost track of the last 2, you better remind me. But on wireless, you're right. What I indicated was Q2 wireless was kind of higher than we -- than we had originally planned and a lot related to demand. Of course, it's demand. We will never ship just because we have the products. It's based on demand, wanting it, and so we're happy to fulfill it.

好的。讓我們從第一個開始。如果我忘記了最後兩個，你最好提醒我。但在無線方面，你是對的。我指出的是，第二季的無線業務比我們最初計劃的要高，並且與需求有很大關係。當然，這是需求。我們絕不會因為我們有產品就出貨。它是基於需求、想要它，所以我們很樂意滿足它。

And part of the demand may actually come a bit from Q3. Not sure 100% yet because this is -- demand comes in short cycles. And it may, and perhaps that's why we are a bit careful about telling you Q3 year-on-year improvement is still 30-plus percent year-on-year growth. I'm not saying 40%-plus. But we don't know for sure, except we know that we do pull in some from Q3 to Q2, not much, and that allows Q2 to perform that 48% year-on-year growth, which is great. But Q3 will still be pretty good year-on-year, as we fully expect.

部分需求實際上可能來自第三季。還不確定 100%，因為需求週期很短。也許是這樣，也許這就是為什麼我們謹慎地告訴大家第三季的同比改善仍然是 30% 以上的同比增長。我不是說40%以上。但我們不確定，除非我們知道我們確實從第三季到第二季吸收了一些，但不多，這使得第二季能夠實現 48% 的同比增長，這非常棒。但正如我們完全預期的那樣，第三季同比仍然相當不錯。

And related to content and all that, I prefer, at this point in this sensitive arena with a highly sensitive situation, to not answer that question at all. No offense, please, but I can't answer that question.

與內容和所有這些相關，在這個高度敏感的敏感領域，我寧願根本不回答這個問題。無意冒犯，但我無法回答這個問題。

But I'll be happy to take the third question, which is, yes, we have cost inflation in this environment where, as we all know, the semiconductor supply chain is on a severe constraint on its ability to provide. Now we are very large. We are a very, very large customer and a very loyal customer to many of our suppliers, all of our key components. And so we believe we are treated very well.

但我很樂意回答第三個問題，那就是，是的，我們在這種環境下成本膨脹，眾所周知，半導體供應鏈的供應能力受到嚴重限制。現在我們已經很大了。我們是一個非常非常大的客戶，也是我們許多供應商和所有關鍵組件的非常忠誠的客戶。所以我們相信我們受到了很好的對待。

Having said that, where prices are concerned, of course not. We see cost inflation. And in this environment, we are very, very open to talking to our customers who are, in turn, very open to being able to address cost -- inflationary cost pressure in a higher purchase price on your side. So we're good, which is why our margin has been stable.

話雖如此，就價格而言，當然不是。我們看到成本膨脹。在這種環境下，我們非常非常願意與我們的客戶交談，而他們反過來也非常願意能夠解決成本問題——貴方提高購買價格所帶來的通膨成本壓力。所以我們很好，這就是我們的利潤率穩定的原因。

Our next question comes from C.J. Muse of Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I guess another question on the supply chain and I guess a bigger picture question, Hock. If you think about your increased lead times, you talked earlier to John's question about selective strategic agreements with key customers. At the same time, we're taking multiyear kind of take-or-pay contracts with foundries. Curious if you see any structural changes to the semi industry as we kind of emerge post pandemic.

我猜是關於供應鏈的另一個問題，我猜是一個更大的問題，霍克。如果您考慮到交貨時間的增加，您之前談到了約翰關於與主要客戶的選擇性策略協議的問題。同時，我們正在與代工廠簽訂多年的照付不議合約。很好奇，隨著我們在疫情後的出現，半導體產業是否會發生任何結構性變化。

Okay. My frank opinion, I don't know. There shouldn't be. Same question that was asked is, do I think the semiconductor industry over the next 10, 20 years will grow any faster or slower? And my view is no, I don't think -- I don't see any fundamental things that have changed. See, while we're in the thick of this storm, so to speak, of course, all hell breaks loose, as the expression goes.

好的。坦白說，我不知道。不應該有。同樣的問題是，我認為未來 10 年、20 年半導體產業的成長會更快還是更慢？我的觀點是否定的，我不認為──我沒有看到任何根本性的事情發生了變化。瞧，當我們正處於這場風暴最激烈的時候，可以這麼說，正如俗話說的那樣，一切都崩潰了。

But these are cycles we all have seen many times in the semiconductor industry. And maybe this is a bit extreme with -- in the context of the pandemic over the course of 2020, now extending partly into 2021, but the supply will step up at some point. And demand is always there because people need technology, people need the performance, need the technology that we all offer in the products we provide. And we'll be competing the same way we have been competing. And it's not necessarily related to creating long-term agreement or any such thing. It's about being able to provide the best technology, the best product in a timely manner for your customers.

但這些都是我們在半導體產業中多次看到的周期。也許這有點極端——在 2020 年大流行的背景下，現在部分延續到 2021 年，但供應量會在某個時候增加。需求總是存在的，因為人們需要技術，人們需要性能，需要我們在我們提供的產品中提供的技術。我們將以與以往相同的方式進行競爭。這不一定與建立長期協議或任何類似的事情有關。這是關於能夠及時為您的客戶提供最好的技術、最好的產品。

And it doesn't matter that you do any agreements if at the end of the day, you lack the technology or you lack the products that customers need to make themselves successful to be able to deploy very well in a good manner. And that has always been the semiconductor industry. And that is -- there will -- I do not see anything that changes that. Now putting long-term agreements might make life easier. But I think it's just a myth. We still have to establish ourselves that we can outperform, out-engineer the competition.

如果歸根結底，您缺乏客戶成功所需的技術或產品，從而能夠以良好的方式很好地進行部署，那麼您達成任何協議都沒有意義。這一直是半導體產業。那就是——將會——我沒有看到任何改變這一點的事情。現在簽訂長期協議可能會讓生活變得更輕鬆。但我認為這只是一個神話。我們仍然必須證明自己能夠超越競爭對手、超越競爭對手。

Our next question comes from Chris Danely of Citi.

我們的下一個問題來自花旗銀行的克里斯·丹利。

There's a lot of talk, worries, speculation, I don't know, old wives' tales, whatever, about this big inventory build of handsets in China. Any thoughts there, Hock and team? And what would be the potential impact for Broadcom?

關於中國手機庫存的大量增加，有很多談論、擔憂、猜測，我不知道，老太太的故事等等。霍克和他的團隊有什麼想法嗎？這對博通有何潛在影響？

Well, not directly. If there's such a big overhang sitting out there, not directly because our wireless business, our wireless product, as we have fully articulated, pretty much sells to 2 large customers largely. And we're talking about handset. We do not sell much, if any, to the handset product -- handset guys, OEMs that is in China. And we sell to 2 big customers, 1 in North America, 1 in Korea. And these are very high-end flagship status phones. And that's it.

嗯，不直接。如果存在如此大的懸而未決，並不是直接因為我們的無線業務，我們的無線產品，正如我們充分闡明的那樣，幾乎主要銷售給兩個大客戶。我們正在談論手機。我們不會向手機產品（中國的手機製造商、原始設備製造商）出售太多（如果有的話）。我們銷售給2個大客戶，1個在北美，1個在韓國。這些都是非常高階的旗艦手機。就是這樣。

And now that could be indirect blowback and that I do recognize in certain markets if there is an excess of inventory that needs to be just thrown out there. But on the other side, on a direct basis, we do not see any -- we do not expect to see any impact.

現在這可能是間接的反作用，我確實認識到在某些市場上如果有多餘的庫存需要扔掉。但另一方面，從直接的角度來看，我們沒有看到任何影響——我們預計不會看到任何影響。

At this time, I'd like to turn the call over to Ji Yoo for closing remarks.

此時，我想將電話轉給 Ji Yoo 進行總結發言。

Thank you, operator. In closing, please note that Hock will be presenting at the BofA Securities Technology Conference on Tuesday, June 8. Following our networking and broadband teach-ins earlier this year, Broadcom and Bernstein will be hosting a teach-in on our storage businesses on Wednesday, July 21 at 12 p.m. Eastern, 9 a.m. Pacific. Hock will be joined by Jas Tremblay, General Manager of our Server Storage Connectivity business; Jack Rondoni, General Manager of our SAN business; and Dan Dolan, Marketing Head of our Hard Disk Drive business.

謝謝你，接線生。最後，請注意，Hock 將於 6 月 8 日星期二在美國銀行證券技術會議上發表演講。月21日中午12點東部時間上午 9 點太平洋。Hock 將由伺服器儲存連線業務總經理 Jas Tremblay 加入； Jack Rondoni，我們 SAN 業務總經理；以及我們硬碟業務行銷主管 Dan Dolan。

That will conclude our earnings call today. Thank you all for joining. Operator, you may end the call.

我們今天的財報電話會議到此結束。感謝大家的加入。接線員，您可以結束通話了。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。