博通 (AVGO) 2019 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Q2 2019 Broadcom Earnings Conference Call.

女士們、先生們，美好的一天，歡迎參加 Broadcom 2019 年第二季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to introduce your host for today's call, Ms. Beatrice Russotto, Director, Investor Relations.

現在我想介紹一下今天電話會議的主持人，投資者關係總監 Beatrice Russotto 女士。

Ms. Russotto, you may begin.

魯索托女士，您可以開始了。

Thank you, operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

Joining me today are Hock Tan, President and CEO; and Tom Krause, Chief Financial Officer of Broadcom.

今天與我一起出席的還有總裁兼執行長 Hock Tan；以及博通財務長湯姆·克勞斯 (Tom Krause)。

After the market closed today, Broadcom distributed a press release and financial table describing our financial performance for the second quarter of fiscal year 2019.

今天收盤後，博通發布了一份新聞稿和財務表格，描述了我們 2019 財年第二季的財務表現。

If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com.

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.

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。

It will also be archived in the Investors section of our website at broadcom.com.

它還將存檔在我們網站 Broadcom.com 的投資者部分。

During the prepared comments section of this call, Hock and Tom will be providing details of our second quarter fiscal year 2019 results, guidance for fiscal year 2019 and commentary regarding the business environment.

在本次電話會議的準備評論部分，Hock 和 Tom 將提供 2019 財年第二季業績的詳細資訊、2019 財年的指導以及有關商業環境的評論。

We will take questions after the end of our prepared comments.

我們將在準備好的意見結束後回答問題。

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.

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聲明存在重大差異的具體風險因素的資訊。

In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis.

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。

A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release.

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。

Comments made during today's call will primarily refer to our non-GAAP financial results.

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。

So with that, I'll now turn the call over to Hock.

因此，我現在將把電話轉給霍克。

Thank you, Bea, and thank you, everyone, for joining in today.

謝謝 Bea，也謝謝大家今天的加入。

Let me touch on the second quarter results, after which I will update you on the current environment and our outlook for the second half of the year.

讓我談談第二季的業績，然後我將向您介紹當前環境和我們對下半年的展望的最新情況。

Looking at the second quarter just passed, it really went as planned.

看看剛剛過去的第二季度，確實是按計劃進行的。

Networking continued to perform very well, and our broadband business started to recover.

網路繼續表現良好，寬頻業務開始復甦。

This was offset by the anticipated sharp decline in wireless and the ongoing softness in storage.

這被預期的無線業務急劇下降和儲存持續疲軟所抵消。

On the other hand, the infrastructure software business delivered solid top line results, benefiting from sustained enterprise demand for our mainframe and distributed software as well as SAN switching products.

另一方面，由於企業對我們的大型主機和分散式軟體以及 SAN 交換產品的持續需求，基礎設施軟體業務實現了穩健的營收績效。

The integration of CA is progressing well.

CA的整合進展順利。

Just last week, we reached a major milestone with day 2, which is the integration of the CA business processes onto Broadcom's IT platform.

就在上週，我們在第二天就實現了一個重要里程碑，將 CA 業務流程整合到 Broadcom 的 IT 平台上。

We remain confident that we can meet, if not exceed, the long-term revenue and profitability targets that we laid out for CA to you last year.

我們仍然有信心能夠實現（如果不能超過的話）我們去年為 CA 制定的長期收入和獲利目標。

Renewals in our CA business are strong, and the dollar commitments from our core customers continue to grow.

我們的 CA 業務更新強勁，我們核心客戶的美元承諾將持續成長。

Now let me address the current business environment and our outlook for the remainder of the year.

現在讓我談談當前的商業環境和我們對今年剩餘時間的展望。

We have, as I indicated, performed very much to plan in the first half of fiscal '19.

正如我所指出的，我們在 19 財年上半年的表現非常符合計畫。

And in the second half, we had expected a recovery.

在下半年，我們預計會出現復甦。

However, while enterprise and mainframe software demand remained stable, particularly in North America and Europe, with respect to semiconductors, it is clear that the U.S.-China trade conflict, including the Huawei export ban, is creating economic and political uncertainty and reducing visibility for our global OEM customers.

然而，雖然企業和大型主機軟體需求保持穩定，特別是在北美和歐洲，但就半導體而言，很明顯，包括華為出口禁令在內的中美貿易衝突正在造成經濟和政治不確定性，並降低了半導體產業的能見度。

As a result, demand volatility has increased and our customers are actively reducing inventory levels to manage risks.

因此，需求波動性增加，我們的客戶正在積極降低庫存水準以管理風險。

This leads us to believe the second half of 2019 will be more in line with the first half as opposed to the previously expected recovery.

這使我們相信 2019 年下半年將與上半年更加一致，而不是先前預期的復甦。

We now anticipate fiscal 2019 semiconductor solutions segment revenue of $17.5 billion, which translates into a year-over-year decline in the high single digits.

我們現在預計 2019 財年半導體解決方案部門的營收為 175 億美元，這意味著年比出現高個位數下降。

CA software continues to perform above our original expectations, while SAN switching is slowing down after a very strong first half.

CA 軟體的表現持續高於我們最初的預期，而 SAN 交換在經歷了上半年的強勁表現後正在放緩。

As a result, we are maintaining our fiscal 2019 infrastructure software outlook at $5 billion.

因此，我們將 2019 財政年度基礎設施軟體的前景維持在 50 億美元。

While this scenario has been playing out, I should emphasize the fundamentals of our business remains very much intact.

雖然這種情況已經發生，但我應該強調我們業務的基本面仍然完好無損。

We continue to execute on the very rich road map for next-generation network switching and routing in the cloud and enterprises, including the leading-edge Trident 4 software-defined network switch just recently announced this week.

我們繼續在雲端和企業中執行非常豐富的下一代網路交換和路由路線圖，包括本週剛發布的領先的 Trident 4 軟體定義網路交換器。

We've also secured the next 2 generations of RF front-end at a large North American OEM, which positions us very well for the transition into 5G.

我們也為北美一家大型 OEM 提供了下一代 2 代 RF 前端，這為我們向 5G 過渡奠定了良好的基礎。

We continue to win increasing numbers of compute offload accelerators in the hypercloud operators across AI, video transcoding, encryption and networking.

我們繼續在人工智慧、視訊轉碼、加密和網路領域的超雲端營運商中贏得越來越多的運算卸載加速器。

We are pleased with the ramp of our new-generation WiFi 802.11ax, otherwise called Wi-Fi 6, in enterprise gateways and carrier access points.

我們對新一代 WiFi 802.11ax（也稱為 Wi-Fi 6）在企業網關和營運商存取點中的推廣感到高興。

All this leaves us confident that we will able to continue to drive sustained long-term revenue growth and increasing free cash flow.

所有這些都讓我們充滿信心，我們將能夠繼續推動持續的長期收入成長和增加自由現金流。

Let me now turn it over to Tom who will provide you with more color.

現在讓我把它交給湯姆，他將為你提供更多的色彩。

Thank you, Hock.

謝謝你，霍克。

Consolidated net revenue for the second quarter was $5.5 billion, a 10% increase from a year ago.

第二季綜合淨收入為 55 億美元，比去年同期成長 10%。

And EPS came in at $5.21, a 7% increase from a year ago off of a 448 million weighted average fully diluted share count.

每股盈餘為 5.21 美元，較去年同期成長 7%，加權平均完全稀釋股數為 4.48 億股。

In addition, we have record free cash flow of $2.54 billion or 46% of revenue.

此外，我們的自由現金流達到創紀錄的 25.4 億美元，佔營收的 46%。

Free cash flow grew 20% year-over-year.

自由現金流年增 20%。

The semiconductor solutions segment revenue was $4.1 billion and represented 74% of our total revenue this quarter, which was down 10% as expected year-on-year on a comparable basis.

半導體解決方案部門營收為 41 億美元，佔本季總營收的 74%，以可比口徑年減 10%，符合預期。

Our infrastructure software segment revenue was $1.4 billion and represented 26% of revenue.

我們的基礎設施軟體部門收入為 14 億美元，佔收入的 26%。

Let me now provide additional detail on our financial performance.

現在讓我提供有關我們財務業績的更多詳細資訊。

Operating expenses were $1.02 billion.

營運費用為 10.2 億美元。

Operating income from continuing operations was $2.95 billion and represented 53.5% of net revenue.

持續經營業務的營業收入為 29.5 億美元，佔淨收入的 53.5%。

Adjusted EBITDA was $3.11 billion and represented 56.4% of net revenue.

調整後 EBITDA 為 31.1 億美元，佔淨收入的 56.4%。

This figure excludes $142 million of depreciation.

該數字不包括 1.42 億美元的折舊。

Receivables in the quarter decreased to $193 million, and inventory decreased to $40 million from the prior quarter.

本季應收帳款較上一季減少至 1.93 億美元，庫存減少至 4,000 萬美元。

I would also note that we accrued $136 million of restructuring and integration expenses and made $218 million of cash restructuring and integration payments in the quarter.

我還要指出的是，本季我們累計了 1.36 億美元的重組和整合費用，並支付了 2.18 億美元的現金重組和整合付款。

Finally, we spent $125 million on capital expenditures.

最後，我們花了 1.25 億美元的資本支出。

In the second quarter, we returned $2.4 billion to stockholders consisting of $1.1 billion in the form of cash dividends and $1.3 billion for the repurchase and elimination of 4.7 million AVGO shares.

第二季度，我們向股東返還了 24 億美元，其中 11 億美元以現金股利的形式，13 億美元用於回購和註銷 470 萬股 A​​VGO 股票。

We ended the quarter with $5.3 billion of cash, $37.5 billion of total debt, 399 million outstanding shares and 447 million fully diluted shares outstanding.

本季末，我們擁有 53 億美元現金、375 億美元總債務、3.99 億股流通股和 4.47 億股完全稀釋流通股。

We also refinanced our $18 billion of term loans that we put in place at the beginning of fiscal 2019 to finance the CA acquisition.

我們也為 2019 財年初發放的 180 億美元定期貸款進行了再融資，為 CA 收購提供資金。

Via a combination of $11 billion of investment-grade bonds and a new term loan, we're able to extend our average debt maturity to approximately 5 years and substantially reduce the quantum of debt due in any one year.

透過 110 億美元的投資等級債券和新定期貸款的結合，我們能夠將平均債務期限延長至約 5 年，並​​大幅減少任何一年的到期債務。

As of today, our average cost of borrowing stands at approximately 3.7%.

截至目前，我們的平均借貸成本約為 3.7%。

Turning to our fiscal year 2019 guidance.

轉向我們的 2019 財年指導。

As Hock discussed, we are updating our full year revenue guidance to $22.5 billion, including approximately $17.5 billion from semiconductor solutions and approximately $5 billion from infrastructure software.

正如霍克所討論的，我們將全年收入指引更新為 225 億美元，其中包括來自半導體解決方案的約 175 億美元和來自基礎設施軟體的約 50 億美元。

IP licensing is not expected to generate a material amount of revenue.

知識產權許可預計不會產生大量收入。

On a non-GAAP basis, operating margins are expected to be approximately 52.5%, an increase of approximately 150 basis points from our prior guidance.

根據非公認會計原則，營業利潤率預計約為 52.5%，比我們先前的指導增加約 150 個基點。

Net interest expense and others are expected to be approximately $1.3 billion.

淨利息支出和其他支出預計約為 13 億美元。

We do not contemplate any debt pay-down in fiscal year 2019.

我們不考慮在 2019 財政年度償還任何債務。

The tax rate is forecast to be approximately 11%.

預計稅率約為11%。

Depreciation is expected to be approximately $600 million.

折舊預計約 6 億美元。

CapEx is expected to be approximately $500 million.

資本支出預計約 5 億美元。

As a result, free cash flow is expected to be approximately $9 billion, which takes into account projected restructuring and integration charges of approximately $1.1 billion.

因此，自由現金流預計約為 90 億美元，其中考慮到預計約 11 億美元的重組和整合費用。

Stock-based compensation expense is expected to be approximately $2.2 billion.

股票補償費用預計約 22 億美元。

And finally, we expect weighted average diluted share count to be 444 million for Q3 and 443 million for Q4, and this excludes any impacts from share buybacks and eliminations.

最後，我們預計第三季加權平均稀釋後股票數量為 4.44 億股，第四季為 4.43 億股，這不包括股票回購和註銷的任何影響。

Now on to capital allocation.

現在進行資本配置。

Our capital allocation strategy remains the same.

我們的資本配置策略維持不變。

We plan to maintain the current quarterly dividend payout of $2.65 per share throughout the year subject to quarterly Board approval, which means we plan to pay out over $4 billion in cash dividends in fiscal 2019.

我們計劃全年維持目前每股 2.65 美元的季度股息支付，但須經董事會季度批准，這意味著我們計劃在 2019 財年支付超過 40 億美元的現金股息。

In addition, we remain committed to buying back and eliminating a total $8 billion of stock in fiscal 2019.

此外，我們仍致力於在 2019 財年回購併銷毀總計 80 億美元的股票。

In the first half of the fiscal year, we have spent $4.8 billion for the repurchase and elimination of shares.

上半財年，我們花了48億美元用於回購和註銷股票。

That concludes my prepared remarks.

我準備好的發言就到此結束。

(Operator Instructions) Operator, please open up the call for questions.

（接線生說明）接線員，請撥打電話詢問問題。

(Operator Instructions) Our first question comes from Vivek Arya with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Vivek Arya。

Hock, in the $2 billion-or-so reduction in the semiconductor outlook for the next 2 quarters, can you give us some sense how much of that is Huawei, how much is outside of Huawei and just any segment level impact so we can calibrate our models?

Hock，未來兩季半導體前景將減少 20 億美元左右，您能否告訴我們其中有多少是華為造成的，有多少是華為以外的，以及任何細分市場層面的影響，以便我們可以校準我們的模型？

Well, it's an interesting way to figure that out because in terms of full disclosure, Huawei represented last year about $900 million of revenues for this company by itself.

嗯，這是一個有趣的方式來解決這個問題，因為就完全披露而言，華為去年為該公司帶來了約 9 億美元的收入。

But the other part of the picture I should add is that guide down that we're providing, as you put it, of $2 billion obviously extends beyond just one particular customer.

但我應該補充的另一部分是，正如您所說，我們提供的 20 億美元的指導顯然超出了某個特定客戶的範圍。

We're talking about uncertainty in our marketplace, uncertainty because of the -- of demand in the form of order reduction as the supply chain out there constricts -- compress, so to speak and because we do see, to some extent, end users in the U.S., particularly North America and Europe, continuing to be there.

我們談論的是市場的不確定性，這種不確定性是由於供應鏈收縮而導致需求以訂單減少的形式減少的，可以這麼說，因為我們確實在某種程度上看到了最終用戶在美國，特別是北美和歐洲，仍然存在。

But what we do see in between is the uncertainty of the environment has put in place a concern about placing additional orders and actively a reduction of inventory out there.

但我們確實看到，環境的不確定性引發了人們對增加訂單和積極減少庫存的擔憂。

Basically, compression of supply chain is what's driving this reduction more than anything else, and it's broad-based.

基本上，供應鏈的壓縮是推動這種減少的最重要原因，而且它的基礎廣泛。

Our next question comes from Blayne Curtis with Barclays.

我們的下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。

Maybe I could just follow up on to that question, Hock.

也許我可以繼續回答這個問題，霍克。

Just kind of curious, as you look -- I mean I think markets were soft and you saw a lot of revisions last quarter.

只是有點好奇，正如你所看到的 - 我的意思是我認為市場疲軟，上個季度你看到了很多修正。

You guys kind of maintained your forecast.

你們維持了你們的預測。

I'm kind of just trying to figure out when you saw this slowdown, if you can give us any idea of that, and then if there's just any more color you can add for end market.

我只是想弄清楚您何時看到這種放緩，是否可以給我們任何想法，然後是否可以為終端市場添加更多顏色。

Is there any end markets that you're not seeing this weakness?

是否有任何終端市場沒有看到這種弱點？

And if you can point to any particular product, that would be helpful.

如果您能指出任何特定產品，那將會很有幫助。

Well, we started seeing this softness, right, as we -- basically, the beginning of this quarter, right, Q3, very much so a dramatic reduction, and it particularly accelerated with the denial order that was imposed on Huawei.

嗯，我們開始看到這種疲軟，對，基本上是在本季度初，對，第三季度，大幅減少，而且隨著對華為的拒絕令而加速。

Our next question comes from Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

On the networking side specifically, that's been a strong area for the team, growing double digits year-over-year for the past few quarters.

特別是在網路方面，這一直是該團隊的優勢領域，在過去幾個季度中同比增長了兩位數。

And it's an area where you guys actually do have some pretty strong product cycles like Tomahawk 3, Jericho 2, some of the compute offload ASICs.

在這個領域，你們確實擁有一些相當強大的產品週期，例如 Tomahawk 3、Jericho 2 和一些計算卸載 ASIC。

In the revised outlook ex Huawei, how does the macro uncertainty impacting this segment and some of these programs?

在修訂後的展望（華為除外）中，宏觀不確定性如何影響該細分市場和其中一些項目？

And again, ex Huawei, would you expect the networking business to grow second half over first half?

再說一遍，除華為外，您預計網路業務下半年會比上半年成長嗎？

Harlan, a very good question.

哈倫，一個非常好的問題。

Our networking business, which I think is what you're referring to, continues to be a very strong business.

我認為您所指的就是我們的網路業務，它仍然是一項非常強勁的業務。

Year-on-year, we expect our networking -- total networking business to grow double digits year-on-year.

與去年同期相比，我們預計我們的網路業務－總網路業務將年增兩位數。

It's strong, particularly with new product ramps and new product cycles that we've seen both in switching, routing related to that.

它很強大，特別是在新產品的成長和新產品週期方面，我們在與之相關的交換和路由中都看到了這一點。

It is one of the brightest areas in our portfolio in this environment and continuous to be strong, notwithstanding the export ban on Huawei.

在這種環境下，它是我們投資組合中最光明的領域之一，儘管對華為實施了出口禁令，但它仍然保持強勁。

Our next question comes from Ross Seymore with Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西莫爾。

I wanted to go into the wireless side.

我想進入無線領域。

I know you just signed a supply agreement with a large North American customer.

我知道你們剛剛與一位北美大客戶簽訂了供貨協議。

They typically have positive second half seasonality.

他們通常在下半年具有積極的季節性。

And most of us believe you actually were regaining some shares.

我們大多數人都相信你實際上重新獲得了一些股份。

So when I put that all into the mix, how are you getting -- especially given what you just said in networking growing double digits, how are you getting the second half to be relatively flat with the first half?

因此，當我將所有這些因素綜合起來時，你的表現如何——特別是考慮到你剛才所說的網絡增長兩位數，你如何讓下半年與上半年相對持平？

Is there some offsets in other areas?

其他領域是否有一些抵消？

Or are some of our assumptions in wireless incorrect?

或者我們對無線的一些假設不正確？

Well, I don't know what the assumptions are, Ross, on wireless.

羅斯，我不知道無線方面的假設是什麼。

But networking is about really the -- is about the only area of strength in this current environment, and that's because it coincides with very strong product cycles we are seeing.

但網路確實是當前環境中唯一的優勢領域，這是因為它與我們所看到的非常強勁的產品週期相吻合。

In just about broadly any of the end market segments, we do not see, in terms of year-on-year, improvement from 2018.

在幾乎所有終端細分市場中，我們都沒有看到 2018 年年比情況有所改善。

Our next question comes from Timothy Arcuri with UBS.

我們的下一個問題來自瑞銀集團的提摩西·阿庫裡。

Hock, I actually just had a question about the competitive environment for your RF front-end business as we kind of move into 5G and particularly around a large modem maker now that's talking about having a complete RF package and sort of being able to sweep that in with their modem.

Hock，實際上，我只是對你們的射頻前端業務的競爭環境有一個疑問，因為我們正在進入5G，特別是圍繞一家大型調製解調器製造商，現在他們正在談論擁有完整的射頻套件，並且能夠掃除這一點。

So can you kind of talk about the competitive environment and your position as you kind of get into 5G?

那麼您能談談進入 5G 時的競爭環境和您的定位嗎？

That's a very interesting question.

這是一個非常有趣的問題。

We continue to believe we are very, very strongly positioned.

我們仍然相信我們的地位非常非常強大。

And it's in many ways validated by some of the data points I just mentioned.

我剛才提到的一些數據點在很多方面都驗證了這一點。

We have, by far, the best technology and products out there in RF front-end components, particularly the filters and the integrated front-end modules.

到目前為止，我們在射頻前端組件方面擁有最好的技術和產品，特別是濾波器和整合前端模組。

We are, by far, the furthest ahead technology-wise and in terms of capabilities.

到目前為止，我們在技術和能力方面處於最領先地位。

And we continue to believe we are still very much in front.

我們仍然相信我們仍然處於領先地位。

And as I said, it's been validated and continues to be validated by the value we give to our very critical customers and the fact that they continue to be very supportive of our business.

正如我所說，它已經得到驗證，並將繼續得到驗證，因為我們為非常關鍵的客戶提供了價值，而且他們繼續大力支持我們的業務。

Our next question comes from Toshiya Hari with Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

I had a question on RF as well.

我也有一個關於 RF 的問題。

Hock, can you remind us what kind of content growth are you expecting or assuming into the back half, both on the RF side as well as the WiFi side of your business within wireless?

Hock，您能否提醒我們，您預計或假設下半年的內容成長會是什麼樣的，無論是在無線業務的 RF 方面還是 WiFi 方面？

And then you also talked about 5G or rather how the recent win positions you well into 5G.

然後您還談到了 5G，或者更確切地說，最近的勝利如何讓您更好地進入 5G。

As of today, what -- based on what you heard from your customers, what kind of content growth on the RF side are you expecting as we transition to 5G over the next couple of years?

截至今天，根據您從客戶那裡聽到的情況，當我們在未來幾年過渡到 5G 時，您預計 RF 方面的內容增長是什麼樣的？

Thank you.

謝謝。

Well, asking year-on-year is actually very difficult, so I appreciate you asking me what do I see over the next 2, 3 years on content growth.

嗯，逐年詢問其實是非常困難的，所以我很感謝你問我在未來 2、3 年的內容成長方面有何看法。

And I mean the best way to describe content growth in RF, and we have seen that and we have empirical evidence of that for the last 5 years, even longer and not the same every year, is that annually, we probably see in the 5% to 10% range content growth and with -- in terms of the products we ship.

我的意思是描述 RF 內容增長的最佳方式，我們已經看到了這一點，並且我們有過去 5 年的經驗證據，甚至更長並且每年都不一樣，每年我們可能會在 5 年內看到這一點% 到10% 範圍內的內容成長以及—就我們出貨的產品而言。

Now for the entire, I guess, served available market or -- yes, served available market, it's probably a smaller growth percentage.

現在，我想，對於整個可用市場，或者——是的，可用市場，它可能是一個較小的成長百分比。

Our next question comes from John Pitzer with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的約翰‧皮策 (John Pitzer)。

Hock, I just want to go back to Ross' question about the wireless guide for the balance of the year.

霍克，我只想回到羅斯關於今年剩餘時間無線指南的問題。

I'm just curious, relative to 90 days ago when you guys were kind of guiding the overall semi business well above normal seasonality for the balance of the year, now you're talking about a flat half-to-half.

我只是很好奇，相對於 90 天前，你們引導整個半成品業務遠高於今年剩餘時間的正常季節性，現在你們談論的是持平的一半。

To what extent did your content expectations come down to the back half of the year versus just this really being a unit issue on the wireless side of the business?

您對下半年內容的期望在多大程度上下降了，而這實際上只是無線業務方面的一個單位問題？

Well, that's an interesting question that lays out that with -- keep in mind, we're taking a very conservative stance here.

嗯，這是一個有趣的問題，請記住，我們在這裡採取非常保守的立場。

And very frankly, even as we see the ramp-up, and we do see the ramp-up, we are -- we have also been forecasting a fairly dramatic set of numbers before.

坦白說，即使我們看到了成長，而且我們確實看到了成長，我們之前也預測了一組相當戲劇性的數字。

And when you -- and that is more than offset by the fact that for the rest of the broader markets, we're just seeing a demand environment that is extremely uncertain.

對於其他更廣泛的市場來說，我們看到的需求環境極其不確定，這一事實遠遠抵消了這一點。

Our next question comes from Craig Hettenbach with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

Hock, just going back to the compute offload you talked about at hyperscale.

Hock，回到您談到的超大規模運算卸載。

I know a little while back you guys talked about some initial traction in ASICs.

我知道不久前你們談到了 ASIC 的一些最初的吸引力。

Just wanted to get an update in terms of the breadth of that particular hyperscale is and how to the extent that you're extending that to multiple customers as we look forward.

只是想了解特定超大規模的廣度以及如何在我們預期的範圍內將其擴展到多個客戶的程度的更新。

Well, I have mentioned before in previous calls, earnings calls, about our focus in increasing traction in what we call compute offload engines or, I call it, compute offload accelerators in multiple areas, including AI, of course, and virtualization, orchestration from the compute servers and expanding that now to video transcoding and encryption.

嗯，我之前在之前的電話會議、財報電話會議中提到過，我們的重點是增加我們所說的計算卸載引擎的吸引力，或者我稱之為多個領域的計算卸載加速器，當然包括人工智能，以及虛擬化、編排運算伺服器，現在將其擴展到視訊轉碼和加密。

And we continue to see that.

我們繼續看到這一點。

And it is an emerging space from our perspective.

從我們的角度來看，這是一個新興的空間。

But nonetheless, it's a space that seems to be growing very steadily and continuing to trend up very significantly.

但儘管如此，這個領域似乎正在非常穩定地成長，並且繼續呈現顯著上升趨勢。

And this is a space we believe at the end -- in a matter of 3 to 5 years could be a significant percentage of the total compute spend within any large-scale data center.

我們最終相信，這個空間在 3 到 5 年內可能會佔任何大型資料中心總計算支出的很大一部分。

And we're talking about potentially getting to perhaps even as high as 25% or more of total spend in the computing environment of a large-scale cloud data center.

我們正在討論的是，大規模雲端資料中心的運算環境的總支出可能高達 25% 或更多。

Our next question comes from Chris Danely with Citi.

我們的下一個問題來自花旗銀行的克里斯丹利 (Chris Danely)。

Just looking at the overall environment, Hock, do you think your guidance incorporates the proposed next round of $300 billion in tariffs, i.e., if that thing does go through, do you still feel good about your guidance?

就整體環境而言，Hock，您認為您的指導意見是否包含擬議的下一輪 3000 億美元關稅，也就是說，如果這件事確實通過，您對您的指導意見仍然感覺良好嗎？

Or do you think there could be more downside if that does go through?

或者您認為如果這種情況真的發生，可能會有更多的負面影響嗎？

I think at this point, we try to capture everything including that proposed next round into the picture.

我認為在這一點上，我們試圖將包括下一輪提案在內的所有內容納入考慮範圍。

We're of the belief that things are -- environment is very, very nervous.

我們相信環境是非常非常緊張的。

And that's why we see a very, very sharp and rapid contraction of supply chain and orders out there from our customers, especially our global OEM customers, even as we believe, as I mentioned in North America and Europe, end demand hasn't reflected that.

這就是為什麼我們看到供應鏈和我們的客戶（尤其是我們的全球 OEM 客戶）的訂單急劇萎縮，儘管我們相信，正如我在北美和歐洲提到的，最終需求並未反映出來。

So we are seeing a very reactive mode here.

所以我們在這裡看到了一個非常被動的模式。

And so I got to believe that includes the sense that this $300 billion of next round of potential tariffs could be in place.

因此，我相信這包括下一輪 3000 億美元的潛在關稅可能會到位的感覺。

Also keep in mind, something I should add is that even as we see some -- there are 2 parts to this.

另請記住，我應該補充的是，即使我們看到一些 - 這也分為兩部分。

One part is what's the impact of the Huawei ban on a company like us selling components and technology?

一方面是華為禁令對像我們這樣銷售零件和技術的公司有何影響？

Well, short term, keep in mind, we'll see a very sharp impact simply because there are no purchases allowed, and there's no obvious substitution in place from other OEMs replace -- taking over end demand, which may exist -- which may continue to exist.

嗯，短期內，請記住，我們將看到非常嚴重的影響，僅僅是因為不允許購買，並且其他原始設備製造商沒有明顯的替代品替代——接管可能存在的最終需求——這可能繼續存在。

Give it a few months, give it 6 months, if those end demand still remains out there, we'll see other OEMs qualified to take over those -- to replace Huawei on those demand and other OEMs will come in, and those OEMs will continue to buy our products.

給它幾個月，給它6個月，如果這些最終需求仍然存在，我們將看到其他有資格接管這些需求的原始設備製造商——根據這些需求取代華為，其他原始設備製造商將會加入，而這些原始設備製造商將繼續購買我們的產品。

And so we have a rebalancing and readjustment in demand from our side.

因此，我們對需求進行了重新平衡和調整。

But short term, we do not expect to see that.

但短期內，我們預計不會看到這種情況。

Our next question comes from William Stein with SunTrust.

我們的下一個問題來自 SunTrust 的 William Stein。

On a brighter note, I'd like to ask about CA a little bit.

更積極的一點是，我想問一下關於 CA 的問題。

Last quarter, Hock, I think you talked about at least one proof point with regard to sort of deeper engagements with CIOs around a deal that might involve both sides of the business.

上個季度，霍克，我認為您至少談到了一個證據點，涉及圍繞一項可能涉及業務雙方的交易與首席資訊長進行更深入的接觸。

Anything similar to that?

有類似的嗎？

Were you seeing more proof points around traction in sort of the strategic approach in that acquisition?

您是否在那次收購中看到了更多關於策略方法方面吸引力的證據？

Well, yes.

嗯，是。

One of the things we are doing is, as we said last time, is as -- we focus on core accounts.

正如我們上次所說，我們正在做的事情之一是——我們專注於核心客戶。

As I said, these are the largest enterprises in the world who buys a lot of software infrastructure and infrastructure software.

正如我所說，這些是世界上最大的企業，購買了大量的軟體基礎設施和基礎設施軟體。

And given the broad portfolio of products CA has that we bring to bear between mainframes, and these largest companies mostly runs a lot of mainframe capacity and distributed software infrastructure, and our ability to offer this as an enterprise- and portfolio-wide transaction, we have been very, very successful in securing such enterprise-wide contracts with significant uplift in booking dollars in the form of larger amount of renewals with, right now, over 20 large accounts in the 6 months since we've taken over and closed on this transaction.

鑑於我們在大型主機之間提供廣泛的產品組合，這些最大的公司大多運行大量的大型機容量和分散式軟體基礎設施，以及我們將其作為企業和投資組合範圍交易提供的能力，我們自我們接管並關閉此專案以來的6 個月內，我們已經非常非常成功地獲得了此類企業範圍的合同，透過大量續訂的形式，預訂金額顯著增加，目前已有20 多個大型帳戶交易。

And we foresee that rate being even higher over the next 6 months.

我們預計未來 6 個月該比率會更高。

So that's working.

這樣就可以了。

And that's working very well, which gives -- which allows us to give you a fairly positive tone to how the CA business has been trending as far as we are concerned.

這運作得非常好，這讓我們能夠為您提供相當積極的基調，以了解我們所關注的 CA 業務的趨勢。

Put it in a nutshell, and I said that earlier, the amount of dollar commitments we've been able to achieve compared to what expires has increased quite significantly.

簡而言之，我之前說過，我們能夠實現的美元承諾金額與到期金額相比已經大幅增加。

Our next question comes from Matt Ramsay with Cowen.

我們的下一個問題來自馬特·拉姆齊和考恩。

Hock, I wanted to ask a little bit about -- obviously, we talked about the demand environment and the trade environment a bit, but I wanted to ask a little bit about the M&A environment as you see it.

霍克，我想問一些關於——顯然，我們討論了一些需求環境和貿易環境，但我想問一些關於你所看到的併購環境的問題。

Obviously, CA took the company in a little bit of a different direction, but we've seen some semiconductor mergers announced here very recently and I wonder if you might give us a little bit of a view on the M&A environment as you see it right now on the semiconductor side.

顯然，CA 帶領公司走向了一個不同的方向，但我們最近在這裡宣布了一些半導體合併，我想知道您是否可以向我們介紹您認為正確的併購環境現在在半導體方面。

You are saying the M&A environment in the semiconductor space?

您是說半導體領域的併購環境嗎？

Yes, I see what you see there, which is some level of activity that seems to go on.

是的，我看到了你所看到的，某種程度的活動似乎仍在繼續。

And it's quite interesting, in a way quite encouraging, for us to see that the direction we have taken, a large part of this industry seems to be making sense to a lot of our peers, too.

這非常有趣，在某種程度上非常令人鼓舞，讓我們看到我們所採取的方向，這個行業的很大一部分似乎對我們的許多同行來說也是有意義的。

And from our point of view, we welcome it.

從我們的角度來看，我們對此表示歡迎。

And as I've indicated before in previous earnings call, for us, it's what's makes sense, what's actionable in terms of businesses that are franchises that we see as very sustainable and that are -- that we are able to acquire.

正如我之前在之前的財報電話會議中所指出的那樣，對我們來說，對於我們認為非常可持續且我們能夠收購的特許經營業務而言，這才是有意義的、可操作的。

And -- but right now, we see a lot of movements, but we -- and we continue to be very interested in opportunities that may present themselves, and we continue to be very active in assessing those opportunities.

但現在，我們看到了很多動向，但我們仍然對可能出現的機會非常感興趣，並且我們繼續非常積極地評估這些機會。

And our final question will come from Chris Caso with Raymond James.

我們的最後一個問題將由克里斯·卡索和雷蒙德·詹姆斯提出。

Hock, I just wanted to return to some of your questions -- some of your comments rather regarding inventory, and you talked about the customers reducing inventory.

霍克，我只想回到你的一些問題——你的一些評論而不是關於庫存，你談到了客戶減少庫存。

Do you think that the inventory levels at the customers were elevated coming into the quarter?

您認為本季客戶的庫存水準是否有所上升？

Or is this just a situation where the customers are reducing inventory proactively because of the uncertainty?

或者這只是客戶因為不確定性而主動減少庫存的情況？

I guess the question is how much of the weakness you see here is driven by inventory reductions as opposed to demand.

我想問題是你在這裡看到的疲軟有多少是由庫存減少而不是需求造成的。

I think what we are seeing a lot here because overall demand weakness or uncertainty probably started even before this quarter began, but the sharpness in terms of demand contraction -- demand reduction, I should say, is coming from the fact that customers are even more aggressively now trying to reduce inventory out there.

我認為我們在這裡看到的很多東西是因為總體需求疲軟或不確定性可能甚至在本季度開始之前就已經開始了，但需求收縮的急劇程度——我應該說，需求減少來自這樣一個事實：客戶甚至更多現在正在積極嘗試減少庫存。

And a lot of it is customer inventory that we're talking about directly.

其中很大一部分是我們直接討論的客戶庫存。

As you noticed, on our balance sheet, our inventory has been very well managed, tightly managed, and we continue to be very, very consistent through all this, in the range of 60 to 65 days of inventory.

正如您所注意到的，在我們的資產負債表上，我們的庫存管理得非常好、嚴格，而且我們在這一切過程中仍然非常非常一致，庫存期限在 60 到 65 天之間。

So this reduction is very much reaction of the supply chain of the end user, which really reflects on our direct customers where there's been a sharp reduction of inventory out there.

因此，這種減少很大程度上是最終用戶供應鏈的反應，這確實反映了我們的直接客戶的庫存急劇減少。

And are we talking significant?

我們正在談論重要的事情嗎？

Yes.

是的。

We believe it is -- what we've seen is very significant, and we anticipate that to continue, which reflects in our revised guidance for the rest of this year, which is the next less than 6 months out there.

我們相信，我們所看到的情況非常重要，我們預計這種情況會繼續下去，這反映在我們今年剩餘時間（即接下來不到 6 個月）的修訂指導中。

Beyond that, who knows?

除此之外，誰知道呢？

Thank you.

謝謝。

Ladies and gentlemen, thank you for participating in today's Q&A session as well as today's conference call.

女士們、先生們，感謝你們參加今天的問答環節以及今天的電話會議。

This concludes the program.

程式到此結束。

You may all disconnect, and have a wonderful day.

你們可以斷開連接，度過美好的一天。