博通 (AVGO) 2023 Q4 法說會逐字稿

Welcome to Broadcom Inc.'s Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. The floor is yours.

歡迎參加 Broadcom Inc. 第四季和 2023 財年財務業績電話會議。現在，為了進行開場發言和介紹，我想將電話轉給博通公司投資者關係主管 Ji Yoo。請發言。

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

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；以及半導體解決方案集團總裁 Charlie Kawwas。

Broadcom distributed a press release and financial tables after the market closed, describing our financial performance for the fourth quarter and fiscal year 2023. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com. This conference call is being webcast live, and an audio replay of the call can be accessed for 1 year through the Investors section of Broadcom's website.

Broadcom 在收盤後分發了一份新聞稿和財務表格，描述了我們第四季度和 2023 財年的財務業績。如果您沒有收到副本，您可以從 Broadcom 網站的投資者部分獲取資訊：broadcom.com 。本次電話會議正在進行網路直播，並且可以透過 Broadcom 網站的投資者部分獲取為期一年的電話會議音訊重播。

During the prepared comments, Hock and Kirsten will be providing details of our fourth quarter and fiscal year 2023 results, guidance for our fiscal year 2024, as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments.

在準備好的評論中，Hock 和 Kirsten 將提供我們第四季度和 2023 財年業績的詳細資訊、2024 財年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.

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。

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.

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.

謝謝你，吉，也謝謝大家今天加入我們。

In our fiscal Q4 '23, consolidated net revenue was $9.3 billion, up 4% year-on-year and very much as we had guided at the last conference call. Semiconductor Solutions revenue increased 3% year-on-year to $7.3 billion, and infrastructure software revenue grew 7% year-on-year to $2 billion. Overall, while infrastructure software remains very stable, semiconductor is continuing the cyclical slowdown at enterprises and telcos that we have been seeing over the past 6 months. However, hyperscalers remain strong.

在 23 年第 4 財季，綜合淨收入為 93 億美元，年增 4%，與我們在上次電話會議上的指導非常接近。半導體解決方案營收年增3%，達73億美元，基礎設施軟體營收年增7%，達20億美元。總體而言，雖然基礎設施軟體仍然非常穩定，但我們在過去 6 個月中看到，企業和電信公司的半導體產業正在繼續週期性放緩。然而，超大規模企業依然強勁。

Generative AI revenue driven by Ethernet solutions and custom AI accelerators represented close to $1.5 billion in Q4 or 20% of semiconductor revenue, while the rest of the semiconductor revenue continued to be rather stable at around $6 billion.

第四季度，由乙太網路解決方案和客製化 AI 加速器驅動的生成型 AI 收入接近 15 億美元，佔半導體收入的 20%，而其餘半導體收入則繼續穩定在 60 億美元左右。

Moving on to results for the year. For fiscal 2023, consolidated revenue hit a record $35.8 billion, growing 8% year-on-year. And since 2020, even though we have not made an acquisition, we have shown a robust trajectory of growth driven by semiconductor growing at an 18% CAGR over the past 3 years. In fiscal 2023, operating profit grew by 9% year-on-year, and our free cash flow grew 8% year-on-year to $17.6 billion or 49% of revenue. We returned $13.5 billion in cash to our shareholders through dividends and stock buybacks.

繼續討論今年的結果。 2023 財年，合併收入達到創紀錄的 358 億美元，較去年同期成長 8%。自 2020 年以來，儘管我們沒有進行收購，但在過去 3 年半導體成長推動下，我們呈現出強勁的成長軌跡，複合年增長率為 18%。 2023 財年，營業利潤年增 9%，自由現金流年增 8%，達到 176 億美元，佔營收的 49%。我們透過股利和股票回購向股東返還了 135 億美元現金。

As you well know, we just closed the acquisition of VMware on November 22, just about 4 weeks into Broadcom's fiscal 2024. We are now refocusing VMware on its core business of creating private and hybrid cloud environments among large enterprises globally and divesting noncore assets. Reflecting the consolidation of a restructured VMware into our 2024 outlook, we forecast our fiscal year '24 consolidated revenue to be $50 billion. We expect the integration to take about a year and will require close to $1 billion in transition spending, which will largely be done as we exit fiscal '24. Regardless, we expect our fiscal year 2024 adjusted EBITDA to be approximately 60% of revenue. Kirsten will give you more details in her section.

如您所知，我們剛剛在11 月22 日完成了對VMware 的收購，此時距離博通2024 財年只有大約4 週時間。我們現在正在將VMware 的重點重新集中在其核心業務上，即在全球大型企業創造私有雲和混合雲環境，並剝離非核心資產。我們預計 24 財年的合併收入將達到 500 億美元，這反映了我們將重組後的 VMware 整合到我們的 2024 年展望中。我們預計整合將需要大約一年的時間，並且需要近 10 億美元的過渡支出，這大部分將在我們退出 24 財年時完成。無論如何，我們預計 2024 財年調整後的 EBITDA 將佔營收的 60% 左右。克爾斯滕將在她的部分中為您提供更多詳細資訊。

Now let me give you more color on our 2 reporting segments, and I'll start with software. In Q4, as you know, there's no VMware revenue and the infrastructure software business of CA, Symantec and Brocade grew 7% year-on-year to $2 billion. Consolidated renewal rates averaged 119% over expiring contracts. And in our strategic accounts, we actually averaged 130%. Over 90% of the renewal value represented recurring subscription and maintenance.

現在讓我為您提供有關我們的 2 個報告部分的更多信息，我將從軟體開始。如大家所知，第四季VMware沒有營收，CA、賽門鐵克和博科的基礎設施軟體業務年增7%，達到20億美元。到期合約的綜合續約率平均為 119%。在我們的策略客戶中，我們實際上平均為 130%。超過 90% 的續訂價值來自定期訂閱和維護。

For the year, renewal rates averaged 116% over expiring contracts and in strategic accounts, we averaged 124%. Revenue in fiscal 2023 was $7.6 billion, up 3% year-on-year and our expectation for fiscal '24 is for this revenue to be $8 billion, which is 4% year-on-year.

今年，到期合約的續約率平均為 116%，而在策略客戶中，平均續約率為 124%。 2023 財年的營收為 76 億美元，年增 3%，我們對 24 財年的預期營收為 80 億美元，年增 4%。

For the 2024 outlook, we are excited to now include VMware. As we all know, VMware has the leading technology to virtualize entire data centers, not just compute, and by doing so, create private clouds on-prem. Our strategy going forward is simply to enable global enterprises to run their applications across the other data centers as well as on public clouds by consuming VMware's higher-value software stack. And to attract and keep these workloads across the environment, we are investing in a rich catalog of microservices tools. This will be our focus. And the noncore businesses of end-user computing and Carbon Black will be divested. So for 2024, based on 11 months of contribution from VMware, we expect VMware to contribute $12 billion in revenue. And on a consolidated basis, we expect our infrastructure software revenue in 2024 to be $20 billion.

對於 2024 年的展望，我們很高興現在將 VMware 納入其中。眾所周知，VMware 擁有領先的技術來虛擬化整個資料中心（而不僅僅是運算），並透過這樣做來創建本地私有雲。我們未來的策略就是透過使用 VMware 的更高價值的軟體堆疊，使全球企業能夠在其他資料中心以及公有雲上運行其應用程式。為了在整個環境中吸引並保留這些工作負載，我們正在投資豐富的微服務工具目錄。這將是我們的重點。最終用戶計算和炭黑等非核心業務將被剝離。因此，根據 VMware 11 個月的貢獻，到 2024 年，我們預計 VMware 將貢獻 120 億美元的營收。綜合來看，我們預計 2024 年基礎設施軟體營收將達到 200 億美元。

Turning now to the semiconductor segment. Let me give you more color by end markets. Q4 networking revenue of $3.1 billion grew 23% year-on-year, representing 42% of our semiconductor revenue. This was primarily driven by strong demand from hyperscalers for our custom AI accelerators and as well for our networking switches, routers and network interface dedicated towards scaling our AI data centers. As you know, even as Ethernet is the standard protocol in front-end networks, hyperscalers are also deploying Ethernet predominantly in their AI networks. In fiscal '23, networking revenue grew 21% year-on-year to $10.8 billion. If we exclude the AI accelerators, networking connectivity represented about $8 billion, and this is purely silicon, not systems, not cable nor subsystem. In fiscal 2024, we expect networking revenue to grow 30% year-on-year, driven by accelerating deployment of networking connectivity and expansion of AI accelerators in hyperscalers.

現在轉向半導體領域。讓我透過終端市場為您提供更多資訊。第四季網路營收為 31 億美元，年增 23%，占我們半導體營收的 42%。這主要是由於超大規模企業對我們的客製化人工智慧加速器以及專門用於擴展人工智慧資料中心的網路交換器、路由器和網路介面的強烈需求所推動的。如您所知，儘管乙太網路是前端網路的標準協議，超大規模企業也在其人工智慧網路中主要部署乙太網路。 23 財年，網路營收年增 21%，達到 108 億美元。如果我們排除人工智慧加速器，網路連接價值約 80 億美元，而且這純粹是晶片，不是系統，不是電纜，也不是子系統。到 2024 財年，我們預計網路收入將年增 30%，這主要得益於網路連線的加速部署以及超大規模企業中人工智慧加速器的擴展。

Moving to wireless. Consistent with the seasonal launch by our North American customers, Q4 wireless revenue of $2 billion increased 23% sequentially and declined 3% year-on-year, representing 27% of semiconductor revenue. In fiscal '23, wireless revenue was relatively flat at $7.3 billion, in fact, just down 2% year-on-year. The engagement with our North American customers continues to be deep, strategic and multiyear. And accordingly, in fiscal '24, we expect wireless revenue to again remain stable year-on-year.

轉向無線。與北美客戶的季節性發布一致，第四季度無線收入為 20 億美元，環比增長 23%，年減 3%，佔半導體收入的 27%。 23 財年，無線收入相對持平，為 73 億美元，事實上，年比僅下降了 2%。我們與北美客戶的合作仍然是深入的、策略性的和多年的。因此，在 24 財年，我們預計無線收入將再次保持年比穩定。

Next, our Q4 server storage connectivity revenue was $1 billion or 14% of semiconductor revenue and down 17% year-on-year. In fiscal '23, server storage connectivity was $4.5 billion, up 11% year-on-year. And going to fiscal '24, we expect server storage revenue to decline mid- to high teens percentage year-on-year, driven by the cyclical weakness that began late '23.

接下來，我們第四季的伺服器儲存連線收入為 10 億美元，佔半導體營收的 14%，年減 17%。 23 財年，伺服器儲存連線營收為 45 億美元，年增 11%。到 24 財年，我們預計伺服器儲存收入將在 23 財年末開始的周期性疲軟的推動下同比下降 10% 左右。

And moving on to broadband. Q4 revenue declined 9% year-on-year to $950 million, in line with expectations and represented 13% of semiconductor revenue. And in fiscal '23, broadband revenue was $4.5 billion and up 8% year-on-year. Moving on to fiscal '24, we expect broadband revenue to be down low to mid-teens percentage year-on-year and reflecting, again, the further slowdown as the cyclical weakness at service providers that began in late '23 continues into fiscal '24.

並轉向寬頻。第四季營收年減 9% 至 9.5 億美元，符合預期，佔半導體營收的 13%。 23 財年，寬頻營收為 45 億美元，年增 8%。進入 24 財年，我們預計寬頻收入將同比下降至百分之十左右，這再次反映出服務提供商自 23 財年末開始的周期性疲軟持續到財年而進一步放緩。24.

And finally, Q4 industrial sales of $236 million was stable year-on-year. In fiscal '23, industrial resales were $962 million. In fiscal '24, we expect industrial sales to be down low single digits year-on-year.

最後，第四季工業銷售額為 2.36 億美元，較去年同期穩定。 23 財年，工業轉售額為 9.62 億美元。在 24 財年，我們預計工業銷售額將年減低的個位數。

So in summary, fiscal '23 Semiconductor Solutions revenue was up 9% year-on-year to $28.2 billion. Revenue from generative AI in fiscal '23 reached 15% of semiconductor revenue in line with our expectation. And moving on to fiscal '24, we forecast Semiconductor Solutions revenue to be up mid- to high single-digit percent year-on-year. We expect revenue from generative AI to represent more than 25% of the semiconductor revenue consistent with prior guidance, which more than offset the lack of growth from non-AI semiconductor revenue.

總而言之，23 財年半導體解決方案營收年增 9%，達到 282 億美元。 23 財年生成式 AI 的營收達到半導體營收的 15%，符合我們的預期。進入 24 財年，我們預測半導體解決方案營收將年增至中高個位數百分比。我們預計生成式人工智慧的收入將佔半導體收入的 25% 以上，與先前的指導一致，足以抵消非人工智慧半導體收入成長不足的影響。

With the consolidation of VMware, bringing our infrastructure software segment revenue to $20 billion and the semiconductor segment holding at mid-high single digit growth year-on-year, we are, therefore, guiding our fiscal '24 revenue to be $50 billion, which represents 40% year-on-year growth from fiscal '23.

隨著 VMware 的整合，使我們的基礎設施軟體部門收入達到 200 億美元，半導體部門同比保持中高個位數增長，因此，我們將 24 財年收入指導為 500 億美元，這較23 財年同比增長40%。

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

接下來，讓我把電話轉給克斯汀。

Thank you, Hock.

謝謝你，霍克。

Let me now provide additional detail on our Q4 financial performance. Consolidated revenue was $9.3 billion for the quarter, up 4% from a year ago. Gross margins were 74.3% of revenue in the quarter, in line with our expectations. Operating expenses were $1.2 billion, flat year-on-year. R&D of $940 million was also stable year-on-year. Operating income for the quarter was $5.7 billion and was up 4% from a year ago, with operating margin at 62% of revenue. Adjusted EBITDA was $6 billion or 65% of revenue, in line with expectations. This figure excludes $124 million of depreciation.

現在讓我提供有關我們第四季度財務業績的更多詳細資訊。該季度綜合營收為 93 億美元，比去年同期成長 4%。本季毛利率佔營收的 74.3%，符合我們的預期。營運費用為 12 億美元，與去年同期持平。研發費用為9.4億美元，年比也維持穩定。該季度營業收入為 57 億美元，比去年同期成長 4%，營業利潤率為營收的 62%。調整後 EBITDA 為 60 億美元，佔營收的 65%，符合預期。該數字不包括 1.24 億美元的折舊。

Now a review of the P&L for our 2 segments, starting with our semiconductor segment. Revenue for our Semiconductor Solutions segment was $7.3 billion and represented 79% of total revenue in the quarter. This was up 3% year-on-year. Gross margins for our Semiconductor Solutions segment were approximately 70%, down 110 basis points year-on-year driven primarily by product mix within our semiconductor end markets. Operating expenses were stable year-on-year at $822 million, resulting in operating profit growth of 2% year-on-year and semiconductor operating margins of 58%.

現在回顧我們兩個部門的損益表，首先是半導體部門。我們的半導體解決方案部門的收入為 73 億美元，佔本季總收入的 79%。較去年同期成長 3%。我們的半導體解決方案部門的毛利率約為 70%，較去年同期下降 110 個基點，這主要是由於我們的半導體終端市場的產品組合所致。營運費用較去年穩定在 8.22 億美元，導致營運利潤年增 2%，半導體營運利潤率為 58%。

Now moving on to our Infrastructure Software segment. Revenue for Infrastructure Software was $2 billion, up 7% year-on-year and represented 21% of revenue. Gross margins for Infrastructure Software were 92% in the quarter, and operating expenses were $339 million in the quarter. Q4 operating profit grew 12% year-on-year with Infrastructure Software operating margin at 75%.

現在轉向我們的基礎設施軟體部分。基礎設施軟體營收為20億美元，年增7%，佔營收的21%。該季度基礎設施軟體的毛利率為 92%，該季度的營運費用為 3.39 億美元。第四季營業利潤年增 12%，基礎設施軟體營業利益率為 75%。

Now moving on to cash flow. Free cash flow in the quarter was $4.7 billion and represented 51% of revenues in Q4. We spent $105 million on capital expenditures. Days sales outstanding were 31 days in the fourth quarter compared to 30 days in the third. We ended the fourth quarter with inventory of $1.9 billion, up 3% sequentially. We continue to remain disciplined on how we manage inventory across the ecosystem. We exited the quarter with 76 days of inventory on hand, down 80 days in Q3. We ended the fourth quarter with $14.2 billion of cash and $39.2 billion of gross debt, of which $1.6 billion is short term.

現在轉向現金流。該季度自由現金流為 47 億美元，佔第四季營收的 51%。我們在資本支出上花了 1.05 億美元。第四季的應收帳款天數為 31 天，而第三季為 30 天。在第四季結束時，我們的庫存為 19 億美元，比上一季成長 3%。我們繼續嚴格管理整個生態系統的庫存。本季結束時，我們的庫存天數為 76 天，比第三季減少了 80 天。截至第四季末，我們的現金為 142 億美元，總債務為 392 億美元，其中 16 億美元為短期債務。

Now let me recap our financial performance for fiscal 2023. Our revenue hit a record $35.8 billion, growing 8% year-on-year. Semiconductor revenue was $28.2 billion, up 9% year-over-year. Infrastructure Software revenue was $7.6 billion, up 3% year-on-year. Gross margin for the year was 74.7%, down 90 basis points from a year ago. Operating expenses were $4.6 billion, down 4% year-on-year. Fiscal 2023 operating income was $22.1 billion, up 9% year-over-year and represented 62% of net revenue. Adjusted EBITDA was $23.2 billion, up 10% year-over-year and represented 65% of net revenue. This figure excludes $502 million of depreciation.

現在讓我回顧一下我們 2023 財年的財務表現。我們的營收達到創紀錄的 358 億美元，年增 8%。半導體營收為 282 億美元，年增 9%。基礎設施軟體營收為76億美元，年增3%。全年毛利率為74.7%，較前一年下降90個基點。營運支出為46億美元，較去年同期下降4%。 2023財年營業收入為221億美元，年增9%，佔淨收入的62%。調整後 EBITDA 為 232 億美元，年增 10%，佔淨收入的 65%。這一數字不包括 5.02 億美元的折舊。

We spent $452 million on capital expenditures, and free cash flow grew 8% year-on-year to $17.6 billion or 49% of fiscal 2023 revenue.

我們的資本支出為 4.52 億美元，自由現金流年增 8%，達到 176 億美元，佔 2023 財年收入的 49%。

Now turning to capital allocation. For fiscal 2023, we spent $15.3 billion, consisting of $7.6 billion in the form of cash dividends and $7.7 billion in share repurchases and eliminations. We ended the year with $7.2 billion of authorized share repurchase programs remaining. With the VMware deal closed, we have resumed repurchasing shares under our existing program.

現在轉向資本配置。 2023 財年，我們支出了 153 億美元，其中 76 億美元用於現金股息，77 億美元用於股票回購和註銷。截至年底，我們還剩 72 億美元的授權股票回購計畫。隨著 VMware 交易的完成，我們已根據現有計劃恢復股票回購。

In fiscal year 2024, including the incremental shares from the acquisition of VMware and excluding the potential impact of any share repurchases, we expect the non-GAAP diluted share count to be approximately 494 million. Aligned with our ability to generate increased cash flows in the preceding year and now off of a larger share count base from the acquisition of VMware, we are announcing an increase in our quarterly common stock cash dividend in Q1 fiscal 2024 to $5.25 per share, an increase of 14% from the prior quarter. We intend to maintain this target quarterly dividend throughout fiscal '24 subject to quarterly board approval. This implies our fiscal 2024 annual common stock dividend to be a record $21 per share. I would like to highlight that this represents the 13th consecutive increase in annual dividends since we initiated dividends in fiscal 2011.

2024 財年，包括收購 VMware 帶來的增量股票，並排除任何股票回購的潛在影響，我們預期非 GAAP 稀釋後股票數量約為 4.94 億股。與我們在前一年產生更多現金流的能力以及現在收購 VMware 帶來的更大股數基礎相一致，我們宣布將 2024 財年第一季的普通股現金股息增加至每股 5.25 美元，較上一季成長14%。我們打算在整個 24 財年維持這一目標季度股息，但須經董事會季度批准。這意味著我們 2024 財年的年度普通股股利將達到創紀錄的每股 21 美元。我想強調的是，這是自 2011 財年開始派息以來年度股息連續 13 次增加。

Now on to guidance. As Hock discussed, with the recent closing of our VMware acquisition and the integration process, which will take at least 1 year, for fiscal 2024, we will provide our outlook for the full year instead of quarterly guidance. Based on current business trends and conditions, our guidance for fiscal year 2024 is for consolidated revenues of $50 billion. Within this, our fiscal year 2024 semiconductor revenue is expected to grow mid- to high single-digit percent year-on-year. Our fiscal year 2024 Infrastructure Software segment revenue from continuing operations is expected to be $20 billion, including $8 billion from CA, Symantec Enterprise and Brocade and $12 billion from VMware.

現在開始指導。正如 Hock 所討論的，隨著我們最近完成了對 VMware 的收購和整合過程（這將至少需要 1 年時間），2024 財年我們將提供全年展望，而不是季度指導。根據目前的業務趨勢和狀況，我們對 2024 財年的指導是綜合收入達到 500 億美元。其中，我們 2024 財年的半導體收入預計將年增中高個位數百分比。 2024 財年，我們的基礎設施軟體部門持續營運收入預計為 200 億美元，其中包括來自 CA、Symantec Enterprise 和 Brocade 的 80 億美元，以及來自 VMware 的 120 億美元。

With regard to VMware, our forecast for fiscal '24 revenue of $12 billion reflects 11 months of contribution from VMware. This does not include revenue from EUC and Carbon Black of approximately $2 billion, which we plan to divest. We are also converting an installed base of licenses that is over 60% perpetual today to one that will be mostly subscription by the end of fiscal 2024. Offsetting these, our new strategy for VMware will accelerate revenue growth over the next 3 years.

對於 VMware，我們對 24 財年營收 120 億美元的預測反映了 VMware 11 個月的貢獻。這還不包括我們計劃剝離的約 20 億美元的 EUC 和 Carbon Black 收入。我們也將目前超過 60% 的永久授權安裝基數轉換為到 2024 財年末大部分將採用訂閱的授權。為了抵銷這些影響，我們的 VMware 新策略將在未來 3 年內加速營收成長。

During fiscal '24, we expect to incur about $1 billion of spend related to transitioning VMware into the new Broadcom model. This transition spending will be largely completed by the end of the fiscal year as our VMware spending run rate exit fiscal '24 at approximately $1.4 billion per quarter, down 40% from a year ago. So in fiscal year 2024, including VMware, we expect consolidated adjusted EBITDA of approximately 60% of projected revenue.

在 24 財年，我們預計將花費約 10 億美元將 VMware 過渡到新的 Broadcom 模型。這項過渡支出將在本財年末基本完成，因為我們的 VMware 支出運行率在 24 財年結束時約為每季 14 億美元，比一年前下降了 40%。因此，在 2024 財年，包括 VMware，我們預期綜合調整後 EBITDA 將約為預期營收的 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 will come from the line of Vivek Arya with Bank of America.

（操作員說明）我們的第一個問題將來自 Vivek Arya 與美國銀行的線路。

Hock, so yesterday, one of your peers suggested that the market for AI accelerators could be as large as $400 billion. So kind of 3 related questions. What do you think about that number? And then number two, how does Broadcom participate in that, just on your large kind of ASIC project on the compute offload side? And then what does this larger AI accelerator market imply for your Ethernet networking business? I assume that they are correlated, but what is the right way to think about what is presumably a much larger market for accelerators and how it impacts Broadcom's growth prospect?

Hock，昨天，您的一位同行表示，AI 加速器的市場可能高達 4000 億美元。這是 3 個相關的問題。你覺得這個數字怎麼樣？第二，Broadcom 如何參與計算卸載方面的大型 ASIC 專案？那麼這個更大的人工智慧加速器市場對您的乙太網路業務意味著什麼？我認為它們是相關的，但是思考可能更大的加速器市場以及它如何影響博通的成長前景的正確方法是什麼？

Thank you for those very interesting questions. Starting with the first part, I mean, it's -- what we're seeing is a market that continues to grow, to accelerate. What is also very obvious is it's very, very dynamic as architectures of large language models, software models, continues to change. I mean, literally change on the fly. We are also seeing the requirements for compute silicon change. And it's very interesting, very fascinating for us, but it also presents quite an interesting opportunity, which is to say that if a customer has a business model that is substantial and have resources which obviously supports that, it's getting to a stage that it might make a lot of sense to design AI compute engines, which comprises memory as well as the compute engine itself, then that can be tailored or better word, customized, for their particular requirements on applications, on the particular LLM model.

謝謝你提出這些非常有趣的問題。從第一部分開始，我的意思是，我們看到的是一個持續成長、加速的市場。同樣非常明顯的是，隨著大型語言模型、軟體模型的架構不斷變化，它是非常非常動態的。我的意思是，實際上是即時改變。我們也看到計算晶片的要求發生變化。這對我們來說非常有趣，非常令人著迷，但它也提供了一個非常有趣的機會，也就是說，如果客戶擁有龐大的商業模式並且擁有明顯支持該模式的資源，那麼它就會進入一個可能的階段設計人工智慧計算引擎非常有意義，其中包括內存以及計算引擎本身，然後可以根據特定的法學碩士模型對應用程式的特定要求進行定制，或者更好的說法是定制。

And we're seeing this as we all are seeing LLM models continue to change and the pace the shape of a generative AI dynamically change more and more, where training and inference are now starting to, in a way, converge. And the chip designs are changing. And we are seeing that in the way we design specific custom chips for hyperscalers. That's interesting. So that's a very interesting opportunity for us. And as I indicated in my remarks, we see that revenue as part of networking revenue, $4 billion and networking for AI networks and going -- doubling almost in 2024. Nothing new. We have said that before. And if anything else, we are reinforcing that particular guidance.

我們看到這一點，因為我們都看到法學碩士模型不斷變化，生成人工智慧的形狀動態變化的步伐越來越大，訓練和推理現在開始在某種程度上融合。而且晶片設計正在改變。我們在為超大規模企業設計特定客製化晶片的方式中看到了這一點。那很有意思。所以這對我們來說是一個非常有趣的機會。正如我在演講中指出的那樣，我們認為該收入是網路收入的一部分，為 40 億美元，人工智慧網路的網路收入將在 2024 年幾乎翻一番。沒什麼新鮮事。我們之前已經說過了。如果有其他的話，我們正在強化這個特定指導。

Now networking is particularly interesting as you heard in my opening remarks. It is accelerating as fast as our AI accelerators, the compute engines are growing. And we see that growing hand in hand and particularly so as training -- continuous training of very large language models with very different and very large parameters keep going on and things keep changing. So we're seeing no slowdown, in fact, in the update on building out this AI network. Anything else on average, we are seeing a doubling on size of those networks across the board.

正如您在我的開場白中所聽到的，現在網路特別有趣。它的加速速度與我們的人工智慧加速器一樣快，運算引擎也不斷成長。我們看到，這種增長是攜手並進的，尤其是隨著訓練——對具有非常不同和非常大的參數的非常大的語言模型的持續訓練不斷進行，事情也在不斷變化。事實上，我們並沒有看到建構這個人工智慧網路的更新速度放緩。平均而言，我們看到這些網路的規模全面翻倍。

So that's -- to answer your question, yes, I fully concur with AMD, when they indicate that it looks like demand appears to be accelerating rather than staying stable or decelerating.

所以，回答你的問題，是的，我完全同意 AMD 的觀點，他們表示需求似乎正在加速，而不是保持穩定或減速。

One moment for our next question, and that will come from the line of Ross Seymore with Deutsche Bank.

現在我們的下一個問題將來自德意志銀行的羅斯·西莫爾（Ross Seymore）。

Just a quick clarification on the question. The clarification is, is the fiscal year guidance going to be the new protocol? Or is that just this quarter? And then the real question, Hock, is on the VMware side of things, Kirsten talked about it potentially accelerating off of that $12 billion base. Can you just talk about the linearity of it maybe throughout the year? Or more importantly, how is it going to be accelerating as people start to look at what the VMware Street estimates were before, we know we have to take out the 2 divested operations. But what are the drivers of acceleration? And how should we consider the magnitude of that as we look forward?

只是對這個問題進行快速澄清。需要澄清的是，財政年度指導是否將成為新協議？或者只是這個季度？ Hock，真正的問題是在 VMware 方面，Kirsten 談到它可能會加速突破 120 億美元的基礎。您能談談它全年的線性嗎？或者更重要的是，當人們開始關注 VMware Street 之前的估計時，它會如何加速，我們知道我們必須取消這兩項剝離的業務。但加速的驅動因素是什麼？展望未來，我們該如何考慮其嚴重程度？

Yes. We are very -- we are in a very interesting, very, very exciting situation here as we move into the next chapter for VMWare. As I said, we focus the business on VMware Cloud Foundation, which is the full software stack that virtualizes data centers, on-prem not totally virtualize it, a cloud environment, and we are converting more and more customers as step-by-step as they come up for renewal into this higher value stack, and we're doing it on a subscription basis. So it becomes very focused.

是的。當我們進入 VMWare 的下一個篇章時，我們正處於一個非常有趣、非常、非常令人興奮的情況。正如我所說，我們將業務重點放在 VMware Cloud Foundation 上，它是虛擬化資料中心的完整軟體堆疊，本地部署而不是完全虛擬化，是一個雲端環境，我們正在逐步轉變越來越多的客戶當他們需要更新到這個更高價值的堆疊時，我們是在訂閱的基礎上進行的。所以它變得非常專注。

So we will kick it off at a much lower rate than -- because subscription generally brings down revenues, as you know, in software based on revenue recognition. But we see a trajectory of accelerated growth even in 2024 -- through 2024. And it just doesn't stop there because it's the math and the trajectory. And to answer your question, you're right, we are accelerating from $12 billion, and we're probably seeing a double-digit growth for the next 3 years, just by sheer math of selling that higher value virtualization stack versus the very loose component sales in the past, particularly on compute only.

因此，我們將以低得多的速度啟動它，因為訂閱通常會降低基於收入確認的軟體的收入。但我們甚至在 2024 年甚至到 2024 年都看到了加速成長的軌跡。而且它不止於此，因為這是數學和軌跡。為了回答你的問題，你是對的，我們正在從120 億美元加速成長，並且僅透過銷售更高價值的虛擬化堆疊與非常鬆散的虛擬化堆疊的純粹數學計算，我們可能會在未來3 年看到兩位數的成長過去的組件銷售，特別是僅在計算方面。

And on the fiscal year side, is this a 1 quarter thing? Or is this the new way you guys are going to be doing it?

從財政年度來看，這是第一季的事嗎？或者這是你們要做的新方式嗎？

Well, that's a good question. Well, we will -- just to give you an indication, in 2024 because it's an accelerating trend, our view is that it's more appropriate and more relevant to getting you guys a sense of where we're headed to get to turn it to an annual guidance for '24 and we will report results every quarter and update our annual guidance '24 each time we report the quarterly actuals.

嗯，這是個好問題。好吧，我們會——只是為了給你們一個指示，在 2024 年，因為這是一個加速的趨勢，我們的觀點是，它更合適、更相關，可以讓你們了解我們將在哪裡將其轉變為'24 年度指導，我們將每個季度報告結果，並在每次報告季度實際情況時更新我們的'24 年度指導。

One moment for our next question and that will come from the line of Harlan Sur with JPMorgan.

我們的下一個問題將由 Harlan Sur 與摩根大通 (JPMorgan) 聯繫，請稍等片刻。

One quick housekeeping item question. So even off the lower revenue base starting in fiscal '24 for VMware, is the team still targeting $8.5 billion-plus of EBITDA in 3 years? And then for my main question, Hock, as you mentioned, right, one of the fastest growing workloads and accelerated compute is accelerated compute in generative AI. And all of these workloads are increasing at an exponential rate, right? You talked about the benefits to your silicon franchise. But given the significant performance requirements of these workloads, right, training, inference, it appears that more of the near-term adoption of running these workloads is on bare metal, GPU, TPU, accelerated servers. So how is the team exploiting a software-defined data center solutions via either cloud foundation or Tanzu to try to help customers focus on AI sort of drive better utilization, better economics, faster deployments on this very fast growing part of the market?

一個快速的內務管理專案問題。因此，即使從 VMware 24 財年開始營收基礎較低，該團隊的目標是否仍是在 3 年內實現 85 億美元以上的 EBITDA？然後，對於我的主要問題，霍克，正如您所提到的，成長最快的工作負載和加速運算之一是產生人工智慧中的加速運算。所有這些工作負載都在以指數速度增長，對嗎？您談到了您的晶片特許經營權的好處。但考慮到這些工作負載（正確的訓練、推理）的顯著效能要求，近期運行這些工作負載的更多採用似乎是在裸機、GPU、TPU、加速伺服器上。那麼，團隊如何透過雲端基礎或Tanzu 利用軟體定義的資料中心解決方案來幫助客戶專注於人工智慧，從而在這個快速成長的市場部分推動更好的利用率、更好的經濟效益和更快的部署呢？

Well, as you may be aware in the last VM Explore in Las Vegas, VMWare came out and announced in partnership with NVIDIA, the VMware Private AI Cloud Foundation. Another way of describing it is VMware, the VMware Cloud Foundation software stack, the whole VCF stack, runs NVIDIA cooler, runs the NVIDIA GPU. That is the partnership. So if you're an enterprise. It's a very easy step to get into AI analytics because the data center that you as an enterprise own on-prem that runs VCF will by default run the NVIDIA GPU software stack as well.

嗯，正如您在拉斯維加斯舉行的上一屆 VM Explore 中可能知道的那樣，VMWare 出來並宣布與 NVIDIA（VMware 私人 AI 雲端基金會）合作。另一種描述方式是 VMware，VMware Cloud Foundation 軟體堆疊，整個 VCF 堆疊，運行 NVIDIA 冷卻器，運行 NVIDIA GPU。這就是夥伴關係。那如果你是一家企業。進入 AI 分析是一個非常簡單的步驟，因為您作為企業擁有的運行 VCF 的本機資料中心預設也會執行 NVIDIA GPU 軟體堆疊。

Another way to put it, it virtualizes the NVIDIA GPU. That's the VMware software stack as well. So it's a very strong attraction in our -- from our perspective to, in fact, accelerate thinking of lot of enterprise to adopting the whole VCF stack. It's simply because not only does it virtualize the data centers and make your data -- on-prem data center much more resilient, easier to manage, lower cost to manage, it has the added benefit, a big attraction this is of being able to right away start running AI workloads.

換句話說，它虛擬化了 NVIDIA GPU。這也是 VMware 軟體堆疊。因此，從我們的角度來看，事實上，它對我們來說具有非常強大的吸引力，可以加速許多企業採用整個 VCF 堆疊的想法。原因很簡單，因為它不僅可以虛擬化資料中心並使您的資料（本地資料中心）更具彈性、更易於管理、管理成本更低，它還具有額外的好處，這是能夠立即開始運行人工智慧工作負載。

And then just on my first question, are you guys still targeting $8.5 billion of EBITDA in 3 years on VMWare?

關於我的第一個問題，你們仍然以 3 年內 VMWare 實現 85 億美元的 EBITDA 為目標嗎？

As Kirsten indicated, as we exit fiscal '24, we are practically at a run rate of $8.5 billion EBITDA.

正如 Kirsten 所指出的，當我們結束 24 財年時，我們的 EBITDA 運行率實際上為 85 億美元。

One moment for our next question and that will come from the line of Stacy Rasgon with Bernstein.

我們的下一個問題將由史黛西·拉斯貢 (Stacy Rasgon) 和伯恩斯坦 (Bernstein) 提出。

Kirsten, along that line, I was wondering if you're going to do 60% EBITDA margin for the company for the full year. How should we think about the beginning and exit rates on EBITDA margin relative to that full year total? And I guess, aligned with that, I think I heard you say you -- that VMware OpEx would be down 40% exiting the year versus the entry trade. I'm actually kind of surprised it's not down more. Maybe that's the reinvestment, but is that $1.4 billion per quarter for VMware, that's the right exit rate for VMware OpEx? And should we sort of go off of that or what?

Kirsten，沿著這個思路，我想知道您是否打算為公司全年實現 60% 的 EBITDA 利潤率。我們應該如何考慮 EBITDA 利潤率相對於全年總額的開始率和退出率？我想，與此一致，我想我聽到你說過——VMware 營運支出今年退出時將比進入交易時下降 40%。我實際上有點驚訝它沒有下降更多。也許這就是再投資，但對 VMware 來說，每季 14 億美元是 VMware OpEx 的正確退出率嗎？我們應該停止這種做法嗎？

Yes, it is. That's VMware spending. So that's total spending.

是的。這就是VMware 的支出。這就是總支出。

Yes, it will be -- Stacy, you're missing the biggest point. We are on a -- as I indicated, I led to an earlier question by Vivek, I think, our revenue during this process, even 12 months, 4 quarters, is on the growth trajectory, just because of the way the math works. As we sell more and it's on revenue, and we recognize revenue on a ratable basis. Our revenue on a quarterly basis is on a growth trajectory. That will keep running and will keep running beyond 2024. But 2024 by itself won't be on a revenue trajectory that goes up very rapidly. So what you have think about picture is, is a revenue trajectory that into '24 that is expanding or growing while the expense -- operating expense total spend because of reduction of transition expenses is declining. And that's why we are telling you that by the end of -- as we exit fiscal '24, we pretty much get to the guidance we gave you at the beginning of when we announced this deal.

是的，將會是──史黛西，你忽略了最重要的一點。正如我所指出的，我提出了 Vivek 之前提出的問題，我認為，在這個過程中，即使是 12 個月、4 個季度，我們的收入也處於成長軌道上，這只是因為數學的運作方式。隨著我們銷售量的增加，並且這是基於收入，我們在可攤派的基礎上確認收入。我們的季度營收處於成長軌道。這種情況將持續下去，並將持續到 2024 年之後。但 2024 年本身的收入成長不會非常迅速。因此，您所想到的情況是，進入 24 年的收入軌跡正在擴大或成長，而由於過渡費用的減少，總營運費用正在下降。這就是為什麼我們要告訴你們，到 24 財年結束時，我們幾乎已經達到了我們在宣布這項交易之初給你們的指導。

So what's the total company EBITDA margin, say, exiting the year then, just to level set?

那麼，今年結束時，公司的 EBITDA 利潤率總額是多少，達到設定的水平？

Well, that's a total. We will get pretty close to where we are supposed to before we started this whole exercise.

嗯，這就是總數。在開始整個練習之前，我們將非常接近我們應該到達的位置。

What was that 65%? I can't remember.

那65%是多少？我不記得了。

It's somewhere between 60% and 65%. How does that sound, Stacy?

大約在 60% 到 65% 之間。聽起來怎麼樣，史黛西？

I mean you did say 65% on it. I think I recall you saying you were going to run VMware at 65%. So I guess, 65% is the right exit rate?

我的意思是你確實說過 65%。我記得您說過要以 65% 的速度運行 VMware。所以我猜，65% 是正確的退出率？

At steady state, you're right. At steady state, we'll get to pretty close to 65% on VMWare.

在穩定狀態下，你是對的。在穩定狀態下，VMWare 上的效率將接近 65%。

One moment for our next question and that will come from the line of Timothy Arcuri with UBS.

我們的下一個問題將由瑞銀集團的 Timothy Arcuri 提出。

Hock, in the language for the approvals from China, they noted some restrictive conditions and there were some protections around some sensitive information from your competitors. Can you detail what these are? And does this change your view on the synergies you can drive either cost or more importantly, revenue?

霍克，在中國批准的措辭中，他們指出了一些限制性條件，並且對來自競爭對手的一些敏感資訊進行了一些保護。能詳細說明一下這些是什麼嗎？這是否會改變您對綜效的看法，您可以推動成本或更重要的是收入？

No. I think those conditions are pretty well laid out in the website of the relevant authorities. I frankly don't think that it's very appropriate for me to sit here and repeat all those conditions again. It's right on the website, and that's what it is.

不會。我認為這些條件在有關當局的網站上已經寫得很清楚了。坦白說，我認為我坐在這裡再次重複所有這些條件不太合適。就在網站上，就是這樣。

Okay. And does it make you think any differently about the synergies that you can drive from the business?

好的。這是否會讓您對可以從業務中獲得的協同效應有任何不同的看法？

No.

不。

One moment for our next question, that will come from the line of Christopher Rolland with Susquehanna.

現在我們的下一個問題將來自克里斯多福羅蘭和薩斯奎哈納的路線。

Congrats on the quarter and closing the VMware deal. I guess cost of capital has increased since the announcement of the deal. And now that this is closed, I guess, does this affect how you look at your capital allocation strategy going forward? It sounds like you bounced -- you bumped the divvy here and you restarted your share repurchase now that it's closed. Are you going to focus more on repurchases? Or is it still same old Broadcom with acquisitions in mind as you delever?

恭喜本季取得成功並完成了與 VMware 的交易。我認為自交易宣布以來，資本成本有所增加。現在，我想這已經結束了，這是否會影響您如何看待未來的資本配置策略？聽起來你已經反彈了——你在這裡撞到了股息，並且在股票回購結束後又重新開始了股票回購。您會更加關注回購嗎？或者，在你去槓桿化的時候，它仍然是老舊的博通（Broadcom），還在考慮收購嗎？

Always with acquisitions in mind, we're continuing our share repurchase program that we promised. So that's -- we're definitely buying back shares. Yes, as being Broadcom, we'll delever quickly. So we'll keep everything in mind essentially.

我們始終牢記收購，並將繼續履行我們承諾的股票回購計畫。所以我們一定會回購股票。是的，身為博通，我們會很快地進行去槓桿化。所以我們基本上會記住一切。

Chris, to expand a bit on that. We acquired VMware with part of cash because it took longer. So we're going to sell some part of cash. And with that, flexibility, not only are we able to give dividends to the new shareholders from VMware side, we are continuing to complete the commitment we make to you, the shareholders, to -- for the rest of fiscal -- for the rest of calendar '23 to buy back that $7 billion of shares out there.

克里斯，對此進行了擴展。我們用部分現金收購了VMware，因為它花了更長的時間。所以我們要出售一部分現金。有了這種靈活性，我們不僅能夠向 VMware 方面的新股東發放股息，我們還將繼續履行我們對各位股東做出的承諾，在剩餘的財政年度中23 日曆年回購價值70 億美元的股票。

Great. And maybe a quick follow-up. Thoughts on just why you didn't offer next quarter in favor of the full year? And if you had any thoughts on the shape of revenue for next year, whether it's back half loaded significantly or pretty linear?

偉大的。也許還有一個快速的跟進。想想為什麼你們不提供下個季度的報價而選擇全年的報價？如果您對明年的收入狀況有什麼想法，那是顯著回負一半還是相當線性？

We just bought a company that's pretty sizable. We are restructuring the business model and we're changing, among other things, the business model to a subscription business model, as Kirsten said, and we see, therefore, that trajectory of the revenue -- a sharp trajectory of growth for the revenue just by sheer conversion to subscription and the fact that we are also upselling a higher-value product. The combination of that and the new company, we -- makes it more, much more sensible, let's put it this way, for us to be able to give you a full year number than a 3-month guidance because spending, transition spending might slip, might accelerate, revenue might accelerate, might slip and giving ourselves 3 months to tell you what it is, especially on a new environment to us. It's not very, very, I call it -- we have not been good to you guys, the shareholders. But for the full year, I think we have hell a lot more confidence, we will attain those endpoints at the exit.

我們剛買了一家規模相當大的公司。正如克爾斯滕所說，我們正在重組業務模式，除此之外，我們正在將業務模式轉變為訂閱業務模式，因此，我們看到了收入的軌跡——收入的急劇增長軌跡只是透過純粹的訂閱轉換以及我們也追加銷售更高價值的產品。這個和新公司的結合，我們——讓它變得更加、更加明智，讓我們這樣說，我們能夠給你一個全年的數字，而不是三個月的指導，因為支出、過渡支出可能會下滑，可能會加速，收入可能會加速，可能會下滑，給自己3 個月的時間來告訴你這是什麼，特別是在我們的新環境中。我稱之為，這不是非常非常──我們對你們股東不好。但對於全年而言，我認為我們更有信心，我們將在出口時達到這些終點。

One moment for our next question and that will come from the line of Toshiya Hari with Goldman Sachs.

請等一下，我們的下一個問題將來自高盛的 Toshiya Hari。

Hock, I had a question on the semiconductor business and specifically on the non-AI side of things for both networking and server storage connectivity. As you noted, you're obviously going through a cyclical correction. Historically, you've had a pretty good understanding of where customer inventory is. And when we simply look at their balance sheets for the public companies, inventory is pretty elevated, particularly on the networking side. What is your interpretation of where inventory is for your products? And how should we think about the timing and pace of recovery as you look into 2024?

Hock，我有一個關於半導體業務的問題，特別是關於網路和伺服器儲存連接的非人工智慧的問題。正如您所指出的，您顯然正在經歷週期性修正。從歷史上看，您對客戶庫存的位置有很好的了解。當我們簡單地查看上市公司的資產負債表時，就會發現庫存相當高，尤其是在網路方面。您對產品庫存的解釋是什麼？展望 2024 年，我們該如何考慮復甦的時機和速度？

On our books, you can see inventory for our products is pretty damn good, right, especially compared to our peers, and that's because we keep it tight. Out in customers, and we don't sell through channels, we don't sell much to channels. We usually do a lot of it direct to our logic customers. We feel they are in good shape, relatively speaking. We are still in good shape. Now if you ask me, maybe server storage, that could be a little excessive, but non-broadband and certainly not in networking.

在我們的帳面上，你可以看到我們產品的庫存非常好，對吧，特別是與我們的同行相比，這是因為我們保持緊張。在客戶之外，我們不透過通路銷售，我們不向通路銷售太多產品。我們通常直接向我們的邏輯客戶做很多工作。相對而言，我們認為他們的狀況良好。我們的狀態仍然很好。現在，如果你問我，也許是伺服器存儲，這可能有點過多，但非寬頻，當然也不是在網路領域。

So overall, on our products, we still feel rather good about it and the best indication is the level of our own inventory on our own books. And -- but what we do see is customers are perhaps much more cautious about buying more stuff, not just because they didn't have too much of my inventory, I think because they have too much of everybody else inventory out there. We tend to see some caution in the way they choose to buy. Having said that, we're still keeping to our lead times.

因此，總體而言，對於我們的產品，我們仍然感覺相當好，最好的指示是我們自己帳簿上的庫存水準。而且 - 但我們確實看到的是，顧客在購買更多東西時可能更加謹慎，不僅僅是因為他們沒有太多我的庫存，我認為是因為他們有太多其他人的庫存。我們往往會看到他們在選擇購買方式時持謹慎態度。話雖如此，我們仍然遵守交貨時間。

And Hock, any comment on sort of the timing or the shape of the recovery in '24?

霍克，對 24 年復甦的時機或形式有什麼評論嗎？

If only I know. I mean I'll be speculating to say second half of '24, things will start looking better compared to the first half of '24.

要是我知道就好了。我的意思是，我推測 24 年下半年，與 24 年上半年相比，情況會開始看起來更好。

And one moment for our next question and that will come from the line of Karl Ackerman with BNP Paribas.

我們的下一個問題將由法國巴黎銀行的卡爾阿克曼 (Karl Ackerman) 提出。

Hock, I was hoping you may discuss the reason for divesting EUC and Carbon Black. And maybe more importantly, as you think about the growth rate off this $12 billion, Kirsten, could you discuss the opportunity you see in front of you as DRAM memory pooling brought in from the adoption of CXL within data centers that would seem to be a very big opportunity for VMware?

Hock，我希望您能討論一下剝離 EUC 和 Carbon Black 的原因。也許更重要的是，當您考慮這 120 億美元的成長率時，Kirsten，您能否討論一下您面前的機會，因為資料中心內採用 CXL 帶來了 DRAM 記憶體池，這似乎是一個對於VMware來說有很大的機會嗎？

Yes. What was the first question again? Sorry. Okay. Why do I choose to sell end-user computing and Carbon Black? Those are good assets. Let's make no mistake. They are very sustaining. They are very stable, good assets. And why we chose to sell them is typically our playbook. We focus very much so on -- in any acquisition where we see the biggest value for our business model. And basically, we then do not want to be distracted by noncore focus. And VMware for us is about core. It's about data centers, it's about core networks and core compute.

是的。第一個問題又是什麼？對不起。好的。為什麼我選擇銷售最終用戶計算和炭黑？這些都是很好的資產。我們不要犯錯。他們非常有毅力。它們是非常穩定的優質資產。我們選擇出售它們的原因通常是我們的策略。我們非常關注——在任何收購中，我們都看到我們的商業模式具有最大的價值。基本上，我們不想被非核心焦點分散注意力。 VMware 對我們來說是核心。它與資料中心、核心網路和核心運算有關。

And so we're now going to invest and focus our sales and R&D on those core areas of VMware Cloud Foundation. And to us, end user computing, Carbon Black, good assets as they may -- as they may be, we prefer to divest them. We'll find good homes for them because there are a lot of very interested parties who are more than happy to take those assets. And we'll be very, very thoughtful about where we -- where we put those assets eventually, simply because their customers of many of these 2 assets, many of the customers are also the same customers to the VMware Cloud Foundation.

因此，我們現在將投資並將銷售和研發重點放在 VMware Cloud Foundation 的這些核心領域。對我們來說，最終用戶計算、炭黑可能是很好的資產，但我們更願意剝離它們。我們將為他們找到好家，因為有很多非常感興趣的各方非常樂意接受這些資產。我們將非常非常仔細地考慮我們最終將這些資產放在哪裡，只是因為這兩種資產中許多的客戶，其中許多客戶也是 VMware Cloud Foundation 的相同客戶。

And one moment for our next question and that will come from the line of Matt Ramsay with TD Cowen.

我們的下一個問題將由 Matt Ramsay 和 TD Cowen 提出。

Hock, I guess I'll caveat my question saying that I'm a semiconductor guy rather than a software expert. But I wanted to ask about the plan to convert the VMware customer base to subscription models. And contrast that with what you guys did with CA and Symantec. So are there -- do you feel like the process is going to be pretty similar in duration and success? Or are there differences in maybe the customer base, the length of the long tail outside the sort of Fortune 1000, the type of technologies there? Are there any similarities or differences in the plan there that we should sort of think about and what that might mean for how quickly you can convert that business?

霍克，我想我會警告我的問題，說我是半導體專家而不是軟體專家。但我想問一下將 VMware 客戶群轉變為訂閱模式的計畫。並將其與你們對 CA 和賽門鐵克所做的事情進行對比。那麼，您是否覺得這個過程在持續時間和成功方面非常相似？或者，客戶群、財富 1000 強之外的長尾長度、技術類型是否有差異？我們應該考慮一下該計劃中是否有任何相似之處或不同之處，以及這對於您能夠以多快的速度轉換該業務意味著什麼？

No. These are very different assets, not saying anyone necessarily is much better than the other, just different. In CA, particularly where we're mainframe, but also some distributors, we focus very much, especially on a core customer base, which represents at that time, we bought it 70% of the overall revenue of those CA. We focus on these customers. We focus on supporting them and we're continuing to basically give them really good support, feature request growth in the area. And that's how we then and -- we focus on Symantec too, which is a small core group of customers.

不。這些是非常不同的資產，並不是說任何人一定比另一個人好得多，只是不同而已。在CA，特別是我們是大型主機的地方，還有一些經銷商，我們非常關注，特別是核心客戶群，這代表著當時我們購買了這些CA總收入的70%。我們專注於這些客戶。我們專注於支持他們，我們將繼續基本上為他們提供真正良好的支持，以及該領域的功能請求成長。這就是我們的方式——我們也關注賽門鐵克，這是一個小的核心客戶群。

And a big part of it is the technology of CA, especially on mainframe is, honestly, is running a lot of legacy applications that are still very, very much alive today, but customers preferring to run it on those mainframe tools simply because it makes no sense to modernize or change for whatever is for their own good reasons. VMware, however, we're selling a product of the present and of the future. It is a growth product to be able to create a virtualized cloud environment in your own data center on-prem for any global company. The good thing about going to public cloud is it's also totally virtualized, but very resilient when you run -- when you run a software-defined environment.

其中很大一部分是CA 技術，尤其是在大型主機上，老實說，正在運行許多遺留應用程序，這些應用程式今天仍然非常非常活躍，但客戶更喜歡在這些大型機工具上運行它，只是因為它使得出於其自身的充分理由而現代化或改變是沒有意義的。然而，VMware 我們銷售的是目前和未來的產品。它是一款成長型產品，能夠在您自己的本地資料中心為任何跨國公司創建虛擬化雲端環境。轉向公有雲的好處是它也是完全虛擬化的，但是當您運行時（當您運行軟體定義的環境時）非常有彈性。

We are creating with VMware, the same experience of virtualization of the data center on-prem for those companies, which have workloads, by the way, that are already running VMware products that application that's already written on VMware Cloud Foundation. This is then giving these enterprises as the opportunity to have a hyperscaler on-prem. That's the plan we're doing, plain and simple.

我們正在與 VMware 一起為那些擁有工作負載的公司創建相同的本地資料中心虛擬化體驗，順便說一句，這些公司的工作負載已經在運行 VMware 產品，該應用程式已經在 VMware Cloud Foundation 上編寫。這為這些企業提供了在本地部署超大規模的機會。這就是我們正在做的計劃，簡單明了。

One moment for our next question and that will come from the line of William Stein with Truist.

我們下一個問題請稍等片刻，這個問題將來自威廉·斯坦因和真理主義者的台詞。

Hock, in the past, I think we've all been aware that there's one major customer on the accelerated compute side, I suspect that has broadened and deepened perhaps and hoping you can give us some characterization of that, maybe the number of customers or projects, how diversified it is at this point, that would really help.

霍克，在過去，我想我們都知道加速運算方面有一個主要客戶，我懷疑這一點可能已經擴大和深化，希望你能給我們一些描述，也許是客戶的數量或項目，目前的多元化程度，這確實會有幫助。

Yes, it has. It has, which reflects some of my opening remarks that say that I used to tell you guys, merchant silicon or [trim], but I think with the evolution of very rapid evolution I've been seeing on the AI, large language model, generative AI, large language models, and the fact that in hardware one size doesn't fit all. That is variation depending on the models you run. I would say that if for some of those hyperscalers with the resources, with the scale requirements to be able to create customized versions of hardware to match with customization of their foundation models and even their application models, it began -- we begin to see the effect of that.

是的，確實如此。它有，這反映了我的一些開場白，我曾經告訴過你們，商業矽或[修剪]，但我認為隨著我在人工智慧、大型語言模型上看到的非常快速的進化，生成式人工智慧、大型語言模型，以及硬體中單一尺寸不適合所有情況的事實。這取決於您運行的模型。我想說，如果對於一些擁有資源、規模要求的超大規模企業來說，能夠創建定製版本的硬件，以匹配其基礎模型甚至應用程序模型的定制，那麼它就開始了——我們開始看到的效果。

Other than that, I'd rather not disclose any more to you at this point because we're kind of under NDA overall.

除此之外，我現在不想向您透露更多信息，因為我們總體上處於保密協議之下。

One moment for our next question and that will come from the line of Harsh Kumar with Piper Sandler.

我們的下一個問題將由 Harsh Kumar 和 Piper Sandler 提出。

Yes, Hock, first of all, congratulations on closing the VMWare deal. I know you've been trying to close that for a while. I wanted to -- you've had a lot of time. Your management had a lot of time to look at this deal through the process of closing. I was curious what you have seen so far that pleases you the most and what do you think will be the most challenging aspect of the integration over the next 12 months that you highlighted?

是的，Hock，首先恭喜您完成了 VMWare 交易。我知道你已經嘗試關閉它有一段時間了。我想——你已經有很多時間了。您的管理層有很多時間在完成過程中審視這筆交易。我很好奇到目前為止您所看到的最令您滿意的內容以及您認為您強調的未來 12 個月整合中最具挑戰性的方面是什麼？

Well, over the past 18 months almost, we had on the journey of closing this deal from the date of announcement. You're right, we had a great opportunity and thanks to a very supportive management team from VMware that engages with us very, very well. Again, it's planning. We cannot wait and see, we can't touch, but it goes through a lot of time to plan and think through. It also gives me a lot of opportunity to go out there. And over the past 12, 16 months, I must have talked one-on-one or in small groups to at least 150 CIOs globally of the largest customers of VMware out there. And one thing is very clear. The VMware core product, the VMware Cloud Foundation software stack that enables virtualization of not just computing, servers, compute, but storage, networking as well as orchestration and management layer over that whole stack, is something that CIOs, Head of Infrastructure of large -- many large companies out there really want.

嗯，從公告發布之日起，我們幾乎在過去 18 個月裡一直在完成這筆交易。你說得對，我們有一個很好的機會，這要感謝來自 VMware 的非常支持的管理團隊，他們與我們進行了非常非常好的合作。再次，它正在計劃。我們不能觀望，不能觸摸，但需要花很多時間去計劃和思考。這也給了我很多出去的機會。在過去的 12 到 16 個月裡，我肯定與 VMware 最大客戶的全球至少 150 名 CIO 進行了一對一或小組討論。有一點是非常清楚的。 VMware 核心產品 VMware Cloud Foundation 軟體堆疊不僅支援運算、伺服器、運算，還支援整個堆疊上的儲存、網路以及編排和管理層的虛擬化，大型企業的資訊長、基礎設施主管認為： - 許多大公司確實想要。

They want to be able to deploy. They want to make their data centers, which is very heterogenous now between virtualization and compute to bare metal and the mix environment and different vendors where each is trying to optimize best-of-breed to one that is managing under a single abstraction layer across a diversity of hardware. That saves a lot of hardware purchases. That make -- that creates a lot of cost reduction in a way to manage it. That is the value of the technology VMware brings to bear. And the products are there. For us it's focusing and execution, which is what you hear us say that today and which is what you hear Kirsten layout in the numbers we are looking at just in the first year of completion of this acquisition.

他們希望能夠部署。他們希望建立自己的資料中心，現在虛擬化和計算到裸機、混合環境和不同供應商之間非常異質，每個供應商都在嘗試優化最佳組合，使其能夠在單個抽象層下跨整個網絡進行管理。硬體的多樣性。這可以節省大量硬體採購。這使得管理成本大大降低。這就是 VMware 技術所帶來的價值。產品就在那裡。對我們來說，它是專注和執行，這就是你今天聽到我們所說的，這也是你聽到克爾斯滕在我們在完成這次收購的第一年看到的數字中的佈局。

And that concludes today's question-and-answer session. I would now like to turn the call back over to Ms. Ji Yoo for any closing remarks.

今天的問答環節到此結束。我現在想將電話轉回給 Ji Yoo 女士，請其發表結束語。

Thank you, operator.

謝謝你，接線生。

In closing, Broadcom currently plans to report its earnings for the first quarter of fiscal '24 after close of market on Thursday, March 7, 2024. A public webcast of Broadcom's earnings conference call will follow at 2:00 p.m. Pacific. That will conclude our earnings call today. Thank you all for joining. Operator, you may end the call.

最後，博通目前計劃在 2024 年 3 月 7 日星期四收盤後公佈其 24 財年第一季的收益。博通收益電話會議的公開網路直播將於下午 2:00 舉行。太平洋。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 all for participating. This concludes today's program. You may now disconnect.

感謝大家的參與。今天的節目到此結束。您現在可以斷開連線。