益華電腦 (CDNS) 2022 Q3 法說會逐字稿

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Thank you. I will now turn the call over to Richard Gu, Vice President of Investor Relations for Cadence. Please go ahead.

下午好。我的名字是艾比，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 Cadence 2022 年第三季度收益電話會議。 （操作員說明）謝謝。我現在將把電話轉給 Cadence 投資者關係副總裁 Richard Gu。請繼續。

Thank you, operator. I'd like to welcome everyone to our third quarter of fiscal year 2022 earnings conference call. I'm joined today by Anirudh Devgan, President and Chief Executive Officer; and John Wall, Senior Vice President and Chief Financial Officer. The webcast of this call and a copy of today's prepared remarks will be available on our website, cadence.com.

謝謝你，接線員。我想歡迎大家參加我們的 2022 財年第三季度收益電話會議。今天，總裁兼首席執行官 Anirudh Devgan 也加入了我的行列；和高級副總裁兼首席財務官約翰·沃爾。我們的網站 cadence.com 將提供本次電話會議的網絡廣播和今天準備好的講話的副本。

Today's discussion will contain forward-looking statements, including our outlook on future business and operating results. Due to risks and uncertainties, actual results may differ materially from those projected or implied in today's discussion. For information on factors that could cause actual results to differ, please refer to our SEC filings, including our most recent Forms 10-K and 10-Q and today's earnings release. All forward-looking statements during this call are based on estimates and information available to us as of today, and we disclaim any obligation to update them.

今天的討論將包含前瞻性陳述，包括我們對未來業務和經營業績的展望。由於風險和不確定性，實際結果可能與今天討論的預測或暗示的結果大不相同。有關可能導致實際結果不同的因素的信息，請參閱我們向美國證券交易委員會提交的文件，包括我們最近的 10-K 和 10-Q 表格以及今天的收益發布。本次電話會議期間的所有前瞻性陳述均基於我們截至今天可獲得的估計和信息，我們不承擔任何更新它們的義務。

In addition, we'll present certain non-GAAP measures, which should not be considered in isolation from or as a substitute for GAAP results. Reconciliation of GAAP to non-GAAP measures are included in today's earnings release.

此外，我們將介紹某些非 GAAP 措施，不應將其與 GAAP 結果分開考慮或替代 GAAP 結果。 GAAP 與非 GAAP 措施的對賬包含在今天的收益發布中。

Today's earnings release for the third quarter of fiscal 2022, related financial tables and CFO commentary are also available on our website. (Operator Instructions)

今天發布的 2022 財年第三季度財報、相關財務表格和首席財務官評論也可在我們的網站上找到。 （操作員說明）

Now I'll turn the call over to Anirudh.

現在我將把電話轉給 Anirudh。

Thank you, Richard. Good afternoon, everyone, and thank you for joining us today. I'm pleased to report that Cadence delivered excellent results for Q3, driven by our technology leadership, strong execution, diversified customer base and resilient business model.

謝謝你，理查德。大家下午好，感謝您今天加入我們。我很高興地報告，在我們的技術領先地位、強大的執行力、多元化的客戶群和有彈性的商業模式的推動下，Cadence 在第三季度取得了出色的業績。

We beat our Q3 guidance on all key metrics and are raising our financial outlook for the year yet again to 19% year-over-year revenue growth and 40% operating margin. John will provide more details on our Q3 results and updated outlook for the year.

我們在所有關鍵指標上都超過了第三季度的指引，並將今年的財務前景再次提高至 19% 的同比收入增長和 40% 的營業利潤率。約翰將提供有關我們第三季度業績和今年更新展望的更多詳細信息。

Notwithstanding the prevailing macroeconomic uncertainties, our thesis about generational drivers, such as 5G, hyperscale computing and AI/ML driving robust design activity over the long term remains intact. These secular trends are accelerating the digital transformation across several end markets, while the growing hyperconvergence across multiple domains, mechanical and electrical, hardware and software and systems and semis is driving the strong need for continued innovation in compute, connectivity and storage.

儘管普遍存在宏觀經濟不確定性，但我們關於代際驅動因素的論文，如 5G、超大規模計算和 AI/ML 長期推動穩健的設計活動，仍然完好無損。這些長期趨勢正在加速多個終端市場的數字化轉型，而跨多個領域、機械和電氣、硬件和軟件以及系統和半導體的日益增長的超融合正在推動對計算、連接和存儲領域持續創新的強烈需求。

Customers are investing heavily to differentiate their next-generation platforms with system companies increasingly developing purpose-built silicon and semiconductor companies benefiting from expanding silicon content. Our comprehensive offerings comprised of leading end-to-end EDA solutions, IP, hardware and expanding systems portfolio uniquely position us to support our customers while providing us with ample growth opportunities.

隨著系統公司越來越多地開發專用矽和受益於不斷擴大的矽含量的半導體公司，客戶正在大力投資以使其下一代平台與眾不同。我們的全面產品包括領先的端到端 EDA 解決方案、IP、硬件和不斷擴展的系統組合，使我們能夠在支持客戶的同時為我們提供充足的增長機會。

In an environment of increasing design complexity, tighter time-to-market requirements and growing shortage of talent, sophisticated AI/ML solutions can greatly help to democratize chip and system development while dramatically increasing productivity and quality of results. Customers deploying our game-changing, AI-driven Cadence Cerebrus and Optimality solutions are realizing amazing results. And in Q3, we augmented our portfolio with the transformative Verisium AI verification platform and the JedAI data platform.

在設計複雜性不斷提高、上市時間要求越來越嚴格以及人才日益短缺的環境中，複雜的 AI/ML 解決方案可以極大地促進芯片和系統開發的民主化，同時顯著提高生產力和結果質量。部署我們改變遊戲規則、人工智能驅動的 Cadence Cerebrus 和 Optimality 解決方案的客戶正在實現驚人的成果。在第三季度，我們通過變革性的 Verisium AI 驗證平台和 JedAI 數據平台擴充了我們的產品組合。

Verification continues to be the critical part and system time to market, consuming the vast majority of resources with debug being the largest component. Verisium provides a generational shift in verification, moving from a legacy single-run, single-engine approach to algorithms that leverage big data and AI to optimize multiple runs across multiple engines, leading to a 10x boost in debug productivity. Several customers, including Samsung and STMicroelectronics, have observed impressive results with Verisium for automatically triaging and root causing bugs.

驗證仍然是關鍵部分和系統上市時間，消耗絕大多數資源，其中調試是最大的組成部分。 Verisium 在驗證方面提供了代際轉變，從傳統的單運行、單引擎方法轉變為利用大數據和 AI 優化跨多個引擎的多次運行的算法，從而將調試效率提高 10 倍。包括三星和 STMicroelectronics 在內的一些客戶已經觀察到 Verisium 在自動分類和導致錯誤的根源方面取得了令人印象深刻的結果。

JedAI is our revolutionary AI-driven, big data analytics platform that is foundational to unifying our AI innovations across Cadence Cerebrus, Optimality and Verisium. JedAI operates on vast amount of data, including all types of design, verification, analysis and methodology information to facilitate smaller design optimization -- facilitate smarter design optimization and enhanced productivity.

JedAI 是我們革命性的人工智能驅動的大數據分析平台，它是統一我們跨 Cadence Cerebrus、Optimality 和 Verisium 的人工智能創新的基礎。 JedAI 對大量數據進行操作，包括所有類型的設計、驗證、分析和方法信息，以促進更小的設計優化——促進更智能的設計優化和提高生產力。

In Q3, we significantly expanded our footprint with market-shaping customers as they increasingly embrace our optimized platform offerings. We deepened our partnership with BAE Systems across our core EDA and systems portfolio, including proliferation of our digital full flow and analog products and a broad expansion of our PCB and multiphysics system analysis solutions.

在第三季度，隨著塑造市場的客戶越來越多地接受我們優化的平台產品，我們顯著擴大了我們的足跡。我們在我們的核心 EDA 和系統產品組合中深化了與 BAE Systems 的合作夥伴關係，包括我們的數字全流程和模擬產品的擴散以及我們的 PCB 和多物理系統分析解決方案的廣泛擴展。

Additionally, in Q3, we strengthened our collaboration with Teradyne, which included a broad proliferation of our core EDA software across digital, analog and verification as well as a significant expansion of our PCB and system analysis business.

此外，在第三季度，我們加強了與泰瑞達的合作，其中包括我們核心 EDA 軟件在數字、模擬和驗證方面的廣泛推廣，以及我們 PCB 和系統分析業務的顯著擴展。

Demand for our core EDA software remains strong and broad-based. Our digital business had another strong quarter with 22% year-over-year growth, driven by key competitive wins and continued proliferation at market-shaping customers. 13 new customers adopted our digital full flow in Q3. It's been just over a year since we launched Cadence Cerebrus and it's fast becoming a linchpin technology for customers as they derive incredible productivity and PPA results on a wide variety of their most advanced SoC designs.

對我們核心 EDA 軟件的需求仍然強勁且基礎廣泛。我們的數字業務又一個強勁的季度實現了 22% 的同比增長，這得益於關鍵的競爭優勢和塑造市場的客戶的持續增長。 13 家新客戶在第三季度採用了我們的數字全流程。自我們推出 Cadence Cerebrus 僅一年多以來，它正迅速成為客戶的關鍵技術，因為他們在各種最先進的 SoC 設計上獲得了令人難以置信的生產力和 PPA 結果。

Several leading customers have major multi-design, multi-project production deployments underway and are reporting up to 30% improvement in quality of results and 30x productivity improvements. Additionally, we see accelerated growth in our front-end and sign-off offerings in part due to the Cadence Cerebrus pull-through effect.

一些領先的客戶正在進行重大的多設計、多項目生產部署，並報告結果質量提高了 30%，生產力提高了 30 倍。此外，我們看到我們的前端和簽核產品加速增長，部分原因是 Cadence Cerebrus 的拉動效應。

We launched the Certus Closure Solution, which dramatically accelerates complete design closure by using an innovative hierarchical architecture and a fully automated environment for concurrent full chip optimization and sign-off. Using Certus, Renesas observed 6x faster chip level sign-off closure versus current methodologies. And MaxLinear experienced overnight full chip sign-off closure while realizing up to 5% of untapped power savings.

我們推出了 Certus Closure 解決方案，該解決方案通過使用創新的分層架構和用於同時進行全芯片優化和簽核的全自動環境，極大地加速了完整的設計收斂。瑞薩電子使用 Certus 觀察到，與當前方法相比，芯片級簽核收斂速度提高了 6 倍。 MaxLinear 在一夜之間經歷了全芯片簽核關閉，同時實現了高達 5% 的未開發功率節省。

Our custom IC business continues to define the analog market with this bold vision, market-leading technology and comprehensive portfolio. In Q3, it grew 12% year-over-year, driven by best-in-class Virtuoso platform and by strong growth in our Spectra Simulation solutions.

我們的定制 IC 業務以其大膽的願景、市場領先的技術和全面的產品組合繼續定義模擬市場。在第三季度，在一流的 Virtuoso 平台和我們的 Spectra Simulation 解決方案的強勁增長的推動下，它同比增長了 12%。

Now moving on to functional verification. In Q3, our business grew 31% year-over-year, led by hardware and Xcelium. Our Palladium Z2 and Protium X2 hardware platforms, providing industry-leading system verification and software bring-up capabilities, added 3 new customers and had 20 repeat orders, including from high-end mobile, AI and hyperscale customers.

現在繼續進行功能驗證。在第三季度，我們的業務在硬件和 Xcelium 的帶動下同比增長 31%。我們的 Palladium Z2 和 Protium X2 硬件平台提供業界領先的系統驗證和軟件啟動能力，新增 3 家新客戶並獲得 20 份重複訂單，包括來自高端移動、人工智能和超大規模客戶的訂單。

Our IP business, led by a STAR IP offerings at the most advanced nodes, continue to benefit from ongoing IP outsourcing trend and from customers increasing embracing IP reuse for risk reduction and faster time to market. During Q3, we signed our largest IP contract ever with the marquee U.S. semiconductor company and had a major expansion at a leading U.S. 5G company. Tensilica extended its leadership in the true wireless stereo market while proliferating its functional safety and infotainment solutions with automotive companies. We also had multiple design IP wins across our leading PCIe, DDR and die-to-die portfolio.

我們的 IP 業務以最先進節點上的 STAR IP 產品為主導，繼續受益於持續的 IP 外包趨勢以及客戶越來越多地接受 IP 重用以降低風險和加快上市時間。在第三季度，我們與大型美國半導體公司簽署了有史以來最大的知識產權合同，並在美國領先的 5G 公司進行了重大擴張。 Tensilica 擴大了其在真正無線立體聲市場的領導地位，同時與汽車公司一起擴大了其功能安全和信息娛樂解決方案。我們還在領先的 PCIe、DDR 和 die-to-die 產品組合中贏得了多項設計 IP。

Our System Design & Analysis business is a key tenet of our growth strategy to leverage our computational software expertise and expand our TAM by growing in near adjacencies. This business continued its strong momentum, delivering 29% year-over-year growth as we increased our footprint in several verticals, including aerospace and defense and high-tech electronics. A broad systems portfolio providing tightly integrated platform solutions across the design, simulation and analysis is resonating strongly with customers as they increasingly choose a broader set of our solutions across these domains.

我們的系統設計和分析業務是我們增長戰略的一個關鍵原則，即利用我們的計算軟件專業知識並通過在鄰近地區增長來擴展我們的 TAM。隨著我們在航空航天、國防和高科技電子等多個垂直領域的業務增加，該業務繼續保持強勁勢頭，實現了 29% 的同比增長。廣泛的系統產品組合在設計、仿真和分析中提供緊密集成的平台解決方案，這引起了客戶的強烈共鳴，因為他們越來越多地在這些領域選擇我們更廣泛的解決方案。

In Q3, we broadened our collaboration with Emerson, a global industrial technology and software leader, as they significantly expanded their use of our system solutions, notably our PCB, AWR and system analysis technologies. Fidelity CFD software, that was announced earlier this year, is ramping nicely and facilitating customers in verticals such as aerospace, marine and turbo machinery to do design optimization, leading to efficiency improvement and meaningful reduction in emissions and energy consumption. And the addition of Future Facilities, digital twin-based thermal and power optimization technology, will further help data center customers to reduce their carbon footprint.

在第三季度，我們擴大了與全球工業技術和軟件領導者艾默生的合作，因為他們顯著擴大了對我們系統解決方案的使用，特別是我們的 PCB、AWR 和系統分析技術。今年早些時候宣布的富達 CFD 軟件正在迅速發展，並幫助航空航天、船舶和渦輪機械等垂直領域的客戶進行設計優化，從而提高效率並顯著減少排放和能源消耗。而未來設施（基於數字雙胞胎的熱力和功率優化技術）的加入，將進一步幫助數據中心客戶減少碳足跡。

Lastly, we completed the acquisition of OpenEye Scientific, a leader in the computational molecular design space. We are very excited to bring our system-level simulation and AI/ML expertise to the life sciences market to help improve the speed and accuracy of bio simulations, thereby enhancing the efficiency and success rate of drug discovery process. Integration of both our Future Facilities and OpenEye acquisitions is progressing well.

最後，我們完成了對計算分子設計領域的領導者 OpenEye Scientific 的收購。我們很高興將我們的系統級模擬和 AI/ML 專業知識帶入生命科學市場，以幫助提高生物模擬的速度和準確性，從而提高藥物發現過程的效率和成功率。我們未來設施和 OpenEye 收購的整合進展順利。

In closing, Q3 was an outstanding quarter as we advanced our intelligent system design strategy and continued to closely collaborate with our customers on their next-generation designs. We are managing our business with an intense focus on innovation and operational excellence to drive both revenue growth and margin expansion and are very well positioned to capitalize on the massive opportunities ahead of us.

最後，第三季度是一個出色的季度，因為我們推進了我們的智能係統設計戰略，並繼續與我們的客戶就他們的下一代設計進行密切合作。我們在管理業務時非常注重創新和卓越運營，以推動收入增長和利潤增長，並且非常有能力利用我們面前的巨大機遇。

Now I will turn it over to John to provide more details on the Q3 results and our updated 2022 outlook.

現在我將把它交給約翰，以提供有關第三季度業績和我們更新的 2022 年展望的更多詳細信息。

Thanks, Anirudh, and good afternoon, everyone. I'm pleased to report that we completed the acquisitions of OpenEye Scientific and Future Facilities in the third quarter of 2022. Cadence exceeded all key financial and operational metrics for the quarter. Here are some of the financial highlights from the third quarter.

謝謝，Anirudh，大家下午好。我很高興地報告，我們在 2022 年第三季度完成了對 OpenEye Scientific and Future Facilities 的收購。Cadence 超過了該季度的所有關鍵財務和運營指標。以下是第三季度的一些財務亮點。

Total revenue was $903 million. GAAP operating margin was 29%, and non-GAAP operating margin was 39%. GAAP EPS was $0.68, and non-GAAP EPS was $1.06. Operating cash flow was $317 million. We used $150 million of cash to repurchase Cadence shares. And at the end of the quarter, our cash balance totaled $1 billion, while the principal value of our debt outstanding was $800 million.

總收入為 9.03 億美元。 GAAP 營業利潤率為 29%，非 GAAP 營業利潤率為 39%。 GAAP EPS 為 0.68 美元，非 GAAP 每股收益為 1.06 美元。經營現金流為 3.17 億美元。我們用 1.5 億美元現金回購了 Cadence 的股票。在本季度末，我們的現金餘額總計 10 億美元，而我們未償債務的本金價值為 8 億美元。

Before I provide our updated outlook for the remainder of fiscal 2022, I'd like to take a moment to share certain key assumptions embedded in our outlook. We expect the impact of the recent changes to U.S. trade restrictions on our business to be limited and manageable. The impact is included in our outlook. Our outlook also assumes that the export limitations that exist today remain substantially similar for the rest of the year.

在我提供我們對 2022 財年剩餘時間的最新展望之前，我想花點時間分享我們展望中包含的某些關鍵假設。我們預計近期美國貿易限制的變化對我們業務的影響是有限且可控的。這種影響包含在我們的展望中。我們的展望還假設今天存在的出口限制在今年剩餘時間里基本保持相似。

Embedding these assumptions into our outlook for fiscal 2022, we now expect revenue in the range of $3.532 billion to $3.552 billion; GAAP operating margin in the range of 29.7% to 30.7%; non-GAAP operating margin in the range of 39.7% to 40.7%; GAAP EPS in the range of $2.71 to $2.75; non-GAAP EPS in the range of $4.20 to $4.24; operating cash flow of approximately $1.2 billion to $1.26 billion; and we expect to use approximately $1.05 billion of our free cash flow to repurchase Cadence shares in 2022.

將這些假設納入我們對 2022 財年的展望，我們現在預計收入在 35.32 億美元至 35.52 億美元之間； GAAP 營業利潤率在 29.7% 至 30.7% 之間；非美國通用會計準則營業利潤率在 39.7% 至 40.7% 之間；公認會計原則每股收益在 2.71 美元至 2.75 美元之間；非公認會計原則每股收益在 4.20 美元至 4.24 美元之間；營運現金流約為 12 億至 12.6 億美元；我們預計將在 2022 年使用大約 10.5 億美元的自由現金流回購 Cadence 的股票。

For Q4, we expect revenue in the range of $870 million to $890 million; GAAP operating margin of approximately 24%; non-GAAP operating margin of approximately 35%; GAAP EPS in the range of $0.50 to $0.54; non-GAAP EPS in the range of $0.89 to $0.93; and we expect to use approximately $300 million of cash to repurchase Cadence shares in Q4.

對於第四季度，我們預計收入在 8.7 億美元至 8.9 億美元之間； GAAP 營業利潤率約為 24%；非公認會計原則營業利潤率約為 35%；公認會計原則每股收益在 0.50 美元至 0.54 美元之間；非公認會計原則每股收益在 0.89 美元至 0.93 美元之間；我們預計將在第四季度使用約 3 億美元現金回購 Cadence 股票。

Our CFO commentary, which is available on our website, includes our outlook for additional items as well as further analysis and GAAP to non-GAAP reconciliations.

我們的 CFO 評論可在我們的網站上找到，其中包括我們對其他項目的展望以及進一步分析和 GAAP 與非 GAAP 對賬。

In summary, I'm pleased with our progress across all lines of business this year. At the midpoint of our outlook, our Q3 revenue CAGR continues to increase, and I'd like to thank our Cadence team for their exceptional execution and financial discipline. At the midpoint of our outlook, we expect our annual non-GAAP operating margin to exceed 40% for the first time, which is especially pleasing. As always, I'd like to thank our customers, partners and our employees for their continued support.

總之，我對我們今年在所有業務領域取得的進展感到滿意。在我們展望的中點，我們的第三季度收入複合年增長率繼續增加，我要感謝我們的 Cadence 團隊出色的執行力和財務紀律。在我們展望的中點，我們預計我們的年度非公認會計原則營業利潤率將首次超過 40%，這尤其令人高興。一如既往，我要感謝我們的客戶、合作夥伴和我們的員工一直以來的支持。

And with that, operator, we will now take questions.

有了這個，接線員，我們現在將回答問題。

(Operator Instructions) Your first question comes from Jason Celino from KeyBanc Capital Markets.

（操作員說明）您的第一個問題來自 KeyBanc Capital Markets 的 Jason Celino。

Can you guys hear me?

你們能聽到我嗎？

Yes, Jason. Go on.

是的，傑森。繼續。

Okay. Perfect. Perfect. Perfect. Sorry to be straight to the point here, but China is on everybody's minds. It was 50% growth in the quarter. To some extent, it was an easy comp, but is the largest revenue that you've seen in period. So I guess where did you see the strength? And then how would you describe the linearity of that strength? Was it all throughout the quarter? Or was it front-half-loaded or back-half-loaded? I'm curious, and then I'll have a follow-up.

好的。完美的。完美的。完美的。很抱歉在這裡直截了當，但中國在每個人的腦海中。本季度增長了 50%。在某種程度上，這是一個簡單的組合，但卻是您在此期間看到的最大收入。所以我猜你是從哪裡看到力量的？然後你會如何描述這種力量的線性？整個季度都是這樣嗎？還是前半載還是後半載？我很好奇，然後我會跟進。

That's a great question, Jason, and thanks for the opportunity to clarify. In Q2, you saw 13% of our revenue in Q2 came from China, and that jumped to 17% in Q3. Most of the increase -- the vast majority of that increase was a result of hardware sales in the quarter, hardware revenue that was recognized from deliveries into China during Q3. So that uptick in China revenue is all from upfront revenue sources.

這是一個很好的問題，傑森，感謝您有機會澄清。在第二季度，您看到我們第二季度 13% 的收入來自中國，而在第三季度躍升至 17%。大部分增長——絕大多數增長是該季度硬件銷售的結果，硬件收入在第三季度從交付到中國的過程中得到確認。因此，中國收入的增長全部來自前期收入來源。

Okay. Perfect. And then I did notice that backlog was kind of sequentially down a smidge in the quarter. How much of that was due to the inclusion of some of these new restrictions?

好的。完美的。然後我確實注意到本季度的積壓訂單略有下降。其中有多少是由於包含了其中一些新限制？

Yes, another great question, Jason. Last quarter, I think it was 2.75 in terms of our current RPO, and that's down to 2.7 now. That's partly as a result of that hardware delivery into China. It also includes the -- this quarter, we've included the impact of the new U.S. export regulations.

是的，另一個很好的問題，傑森。上個季度，我認為就我們當前的 RPO 而言是 2.75，現在已經下降到 2.7。這部分是由於向中國交付了硬件。它還包括 - 本季度，我們已經包括了新的美國出口法規的影響。

On backlog, in total, I think it went from 5.6 to 5.5. The current -- the RPO piece, that was slightly down more, and we had an increase in IP. We signed our largest IP contract ever, and that's in the noncancelable commitment portion of our backlog.

總的來說，我認為它從 5.6 上升到 5.5。當前 - RPO 部分略有下降，我們的 IP 有所增加。我們簽署了有史以來最大的知識產權合同，這是我們積壓的不可取消承諾部分。

Your next question comes from the line of Charles Shi from Needham & Company.

您的下一個問題來自 Needham & Company 的 Charles Shi。

Anirudh and John, I really just want to go back to the China question, maybe not immediate Q4 or fiscal '22, but to try to look a little bit ahead. Among your kind of like mid-teens of the total revenue coming from China, I know you sell to China to various kind of customers. You've got multinationals. You've got the large semiconductor companies, domestic. You've got AI start-ups, Chinese system companies. But across this wide spectrum of the different kind of customers in China, what kind of customer, the sales to the customer, could be the most impacted by the export control? And well, can you kind of quantify to us how much of the percentage of your revenue going to be impacted because of the latest round of export controls? And I have a follow-up to that.

Anirudh 和 John，我真的只想回到中國問題，也許不是立即的 Q4 或 22 財年，而是試著向前看一點。在你們來自中國的總收入中，我知道你們向中國銷售各種類型的客戶。你有跨國公司。你有國內的大型半導體公司。你有人工智能初創公司，中國系統公司。但在中國如此廣泛的不同類型客戶中，什麼樣的客戶，即對客戶的銷售，可能會受到出口管制的最大影響？好吧，您能否向我們量化一下，由於最新一輪的出口管制，您的收入中有多少會受到影響？我對此有後續行動。

Charles, this is John. Yes, the -- good point there. We did call out that the impact is limited. We believe the impact is limited and manageable. That's not just for Q4, but for the foreseeable future going forward.

查爾斯，這是約翰。是的，那裡有一個好點。我們確實呼籲影響是有限的。我們認為影響是有限且可控的。這不僅適用於第四季度，而且適用於可預見的未來。

Any thoughts on any specific type of customers that you may see the greater impact in the China -- in your China market?

對任何特定類型的客戶有什麼想法，您可能會在中國看到更大的影響——在您的中國市場？

Charles, this is Anirudh. So overall, China is a diversified customer base, and we have a lot of design activity in China. To think about Cadence is we participate in all kinds of designs, right, whether analog or digital or memory in different market segments. So overall, I feel that, that will be intact.

查爾斯，這是阿尼魯德。所以總的來說，中國是一個多元化的客戶群，我們在中國有很多設計活動。想想Cadence，我們參與了各種設計，對，無論是模擬、數字還是不同細分市場的存儲器。所以總的來說，我覺得那將是完整的。

I think there is some effect on local, like China foundries in the latest regulations, as you probably know. But overall, our business is very diversified, not just in China but other geos. So -- and therefore, we feel the impact is limited and manageable. And like what John said, not just for remaining of the year, but also going forward.

我認為這對當地有一些影響，比如最新法規中的中國代工廠，你可能知道。但總的來說，我們的業務非常多元化，不僅在中國，而且在其他地區。所以 - 因此，我們認為影響是有限且可控的。就像約翰所說的那樣，不僅是為了今年剩下的時間，而且是為了未來。

Your next question comes from the line of Gary Mobley from Wells Fargo.

您的下一個問題來自富國銀行的 Gary Mobley。

I wanted to talk about perhaps the indirect impact from the China export restrictions and as well the general semiconductor market backdrop and the challenges this may present for companies like Cadence. So you have some of your large customers who can ship product to China because of various export restrictions, one of which can't ship $400 million worth of product because of these export restrictions.

我想談談中國出口限制的間接影響，以及總體半導體市場背景以及這可能給 Cadence 等公司帶來的挑戰。因此，由於各種出口限制，您的一些大客戶可以將產品運送到中國，其中一個由於這些出口限製而無法運送價值 4 億美元的產品。

So to what extent, long term, might the R&D budgets of those types of companies be impacted, and related to that, the chip design activity as they can no longer sell to various and large end markets like China? And then related to the overall market backdrop, are you seeing any change in customer behavior with respect to the time it takes to get signed off on any large license deals?

那麼，從長遠來看，這些類型的公司的研發預算會在多大程度上受到影響，以及與芯片設計活動相關的影響，因為它們不能再向中國等各種大型終端市場銷售？然後與整體市場背景相關，您是否看到客戶行為在簽署任何大型許可交易所需的時間方面有任何變化？

Gary, good point, especially the indirect effect and also overall macroeconomic uncertainties. And we are carefully monitoring the situation on both of these fronts. As you know, we are more on the design side than on the volume of shipments. So on the macroeconomic trends, of course, there's a lot of news in the press, and we are carefully monitoring it.

加里，好點，尤其是間接影響以及整體宏觀經濟的不確定性。我們正在仔細監控這兩個方面的情況。如您所知，我們更多的是在設計方面而不是在出貨量方面。所以關於宏觀經濟趨勢，當然，媒體上有很多新聞，我們正在密切關注。

But right now, we see robust design activity.

但現在，我們看到了強大的設計活動。

And as you know, we participate in all the market verticals. So even if some verticals may be weaker, on their shipment side, they will still do design. But then some verticals are still good on the shipment side as well. So with this combination of us being on the design side and then us being very diversified across multiple verticals, right now, we still see very robust design activity. And that's reflected in the results that we are reporting today, right, and our outlook for rest of the year.

如您所知，我們參與了所有垂直市場。因此，即使某些垂直行業可能較弱，在他們的出貨方面，他們仍然會做設計。但是，一些垂直行業在出貨方面仍然很好。因此，由於我們在設計方面的組合，然後我們在多個垂直領域非常多樣化，現在，我們仍然看到非常強大的設計活動。這反映在我們今天報告的結果以及我們對今年剩餘時間的展望中。

Now on the indirect effect on China, that's to be observed also. But again, we are pretty diversified. And then yes, there's always some effect on some of our customers. But again, we are pretty diversified. And then -- so we, right now, feel that, that's manageable, but we will carefully monitor that going forward.

現在關於對中國的間接影響，這也需要觀察。但同樣，我們非常多樣化。然後是的，對我們的一些客戶總是有一些影響。但同樣，我們非常多樣化。然後 - 所以我們現在覺得這是可以管理的，但我們會仔細監控未來的情況。

All right. So I wanted to switch topics to your JedAI-based AI machine learning tools, including Cerebrus and some of the others you recently announced. I know you're in the early days of price discovery and introducing those products to market. What has been the feedback as it relates to "price discovery," and related to that, how deeply you may be seeing penetration at some of your early days customers there?

好的。所以我想把話題轉到你們基於 JedAI 的 AI 機器學習工具上，包括 Cerebrus 和你們最近宣布的其他一些工具。我知道您正處於價格發現和將這些產品推向市場的早期階段。與“價格發現”相關的反饋是什麼？與此相關的是，您在早期的一些客戶中看到的滲透程度有多深？

Yes, Gary, that's a great point. And we are super excited about this new AI-based solution because like I mentioned earlier, this is a great opportunity for EDA to add more value to our customers. Because if you look at historically, EDA has always been like -- has done -- we have done a lot of great productivity improvements for our customers, but it has always been like a single-run environment, right? You run our tool 1 time, and then the multiple runs have been managed by the customers. Typically, when you do the design, you're not running our tools 1 time, you're running it multiple times. So with these data analytics and AI, we can really offer solutions in this multi-run environment.

是的，加里，這是一個很好的觀點。我們對這個基於人工智能的新解決方案感到非常興奮，因為就像我之前提到的，這是 EDA 為我們的客戶增加更多價值的絕佳機會。因為如果你從歷史上看，EDA 一直就像 - 已經做到了 - 我們為我們的客戶做了很多偉大的生產力改進，但它總是像一個單一運行的環境，對吧？您運行我們的工具 1 次，然後多次運行由客戶管理。通常，當您進行設計時，您不會運行我們的工具 1 次，而是多次運行它。因此，通過這些數據分析和人工智能，我們可以真正在這種多運行環境中提供解決方案。

And so AI is a key part of that. But in a multi-run environment, you also have to manage the data because AI tools run on top of all the data that is generated. And we are very proud of this new JedAI platform. It's a new data analytics platform to capture all kinds of data in the design process. And that unifies our solutions across this space. And then we have 3, like, big apps on top of JedAI, on top of this data analytics. So one you already know, like Cadence Cerebrus, which was launched last year; Optimality, which is on the system space using some of the similar technologies as Cerebrus but applied to system simulation; and now Verisium in verification, which, by the way, verification, as you know, is one of the most time-consuming parts of the design flow and also the one that generates the most data. Logic simulation, hardware verification generates the most amount of data in EDA. So that's why it was critical to have JedAI to unify all these things, but also get ready for more data like in verification.

所以人工智能是其中的關鍵部分。但在多運行環境中，您還必須管理數據，因為 AI 工具在生成的所有數據之上運行。我們為這個新的 JedAI 平台感到非常自豪。它是一個新的數據分析平台，用於捕獲設計過程中的各種數據。這統一了我們在這個領域的解決方案。然後我們有 3 個，比如，在 JedAI 之上的大型應用程序，在這個數據分析之上。所以你已經知道了，比如去年推出的 Cadence Cerebrus；最優性，在系統空間上使用一些與 Cerebrus 類似的技術，但應用於系統仿真；現在 Verisium 在驗證中，順便說一下，驗證是設計流程中最耗時的部分之一，也是生成最多數據的部分。邏輯仿真、硬件驗證在 EDA 中生成的數據量最大。所以這就是為什麼讓 JedAI 統一所有這些東西至關重要，同時也要為更多數據做好準備，比如驗證。

And the adoption has been actually surprisingly good. And all the big customers are engaged. You see in Verisium, we have endorsement from several big customers. We talked about Cerebrus last time. So at this point, all the major customers really do want to deploy these solutions. And like I mentioned in the script, not just for 1 or 2 designs, we are seeing broader and broader adoption, and we are very happy with the progress so far.

採用實際上出奇的好。所有大客戶都參與其中。您在 Verisium 中看到，我們得到了幾個大客戶的認可。上次我們談到了 Cerebrus。所以在這一點上，所有主要客戶都確實想要部署這些解決方案。就像我在腳本中提到的那樣，不僅僅是一兩個設計，我們看到越來越廣泛的採用，我們對迄今為止的進展感到非常滿意。

Your next question comes from Jay Vleeschhouwer from Griffin Securities.

您的下一個問題來自 Griffin Securities 的 Jay Vleeschhouwer。

Anirudh, for you first, when you look back at the last 1 or 2 years, how would you rank the contribution to your bookings growth and/or share gain in what we define as core EDA from the various products that go under your -- us and nomenclature? I assume Innovus has been part of that given the size. But when you look at some of the various other sign-offs and other tools that you've introduced under that nomenclature, again, how would you rank the new momentum or incremental contribution from those and perhaps even look out ahead over the next 1 to 2 years in that respect?

Anirudh，首先對您而言，當您回顧過去 1 年或 2 年時，您如何對您的預訂增長的貢獻和/或在我們定義為核心 EDA 的分享收益進行排名，這些產品來自您旗下的各種產品——我們和命名法？考慮到規模，我認為 Innovus 已經成為其中的一部分。但是，當您再次查看您在該術語下引入的一些其他簽核和其他工具時，您將如何對這些新動力或增量貢獻進行排名，甚至可能展望未來 1 到2年在這方面？

Secondly, for you, John, what has been your experience to date in terms of the predictability of your IP business? This is not a China-specific question, but feel free to talk about China, specifically in terms of the increasingly material upfront component that we've seen for IP rev rec as well as for your services engagements related to IT.

其次，約翰，您迄今為止在知識產權業務的可預測性方面有何經驗？這不是一個針對中國的問題，但請隨意談論中國，特別是關於我們已經看到的 IP rev rec 以及您與 IT 相關的服務參與的越來越重要的前期組件。

Yes. Jay, that's a good question. And actually, I'm very pleased with our strength of portfolio in core EDA. And as you know, we have been doing increasingly well over the last couple of years. And I can say that Cadence -- core EDA portfolio is strong as it has ever been. And we want to apply our expertise in computational software to new areas like system analysis and system design and analysis, but it's super critical to maintain the leadership in the core because core always comes first. And then we take those expertise and apply to new areas like systems. So we are always focused on the core first.

是的。傑，這是個好問題。實際上，我對我們在核心 EDA 方面的投資組合實力感到非常滿意。如您所知，在過去的幾年裡，我們的表現越來越好。我可以說Cadence——核心EDA產品組合一如既往地強大。我們希望將我們在計算軟件方面的專業知識應用於系統分析和系統設計與分析等新領域，但保持核心領導地位至關重要，因為核心永遠是第一位的。然後我們將這些專業知識應用於系統等新領域。所以我們總是首先關注核心。

And core parts are, let's say, 3 big areas, right, in core EDA, digital, analog and verification at a high level. And I feel that we have a very strong portfolio now. In terms of contributions of growth, in analog, we were always strong, and I think there were some areas to improve in Spectre simulation, which have been fixed over the last 2 years. So I think analog is more steady. And you can see even this quarter, it grew a healthy 12%. But a lot of the growth has come from digital and not just Innovus, which is placed in route, but also now with synthesis and sign-off and Cerebrus. So I would say digital is growing very well also in terms of strengthening the position in the market.

比如說，核心部分是 3 個大領域，對，核心 EDA、數字、模擬和高級驗證。我覺得我們現在擁有非常強大的投資組合。在增長的貢獻方面，在模擬中，我們總是很強大，我認為 Spectre 模擬有一些需要改進的地方，這些在過去 2 年中已經得到修復。所以我認為模擬更穩定。您甚至可以看到，即使在本季度，它也增長了 12%。但是很多增長來自數字化，而不僅僅是 Innovus，它被放置在路由中，而且現在還來自於合成和簽核以及 Cerebrus。所以我會說數字在加強市場地位方面也發展得很好。

And then I'm especially pleased with verification. Now verification, there is systemic growth drivers that is helping hardware, but I think that some of it is strength of our portfolio, and some of it is hardware becomes more critical to the design portfolio. But in verification, I'm actually also pleased with Verisium, our logic simulator. I think that's doing really well in this year and over the last couple of years. And that completes our overall verification platform because we are now strong in hardware with Palladium and Protium. And then Jasper, we have always been the leading solution in formal verification. And with the strength of Xcelium, it completes our verification platform.

然後我對驗證特別滿意。現在驗證，有系統性的增長驅動力正在幫助硬件，但我認為其中一些是我們產品組合的優勢，還有一些是硬件對設計組合變得更加重要。但在驗證過程中，我實際上對我們的邏輯模擬器 Verisium 也很滿意。我認為這在今年和過去幾年做得非常好。這完成了我們的整體驗證平台，因為我們現在擁有強大的 Palladium 和 Protium 硬件。然後是 Jasper，我們一直是形式驗證的領先解決方案。並且憑藉 Xcelium 的實力，它完成了我們的驗證平台。

So I would say the growth in core EDA is driven by digital, number one; verification, close second; and then maintaining and strengthening our position in analog.

所以我想說核心 EDA 的增長是由數字驅動的，第一；驗證，關閉第二；然後保持和加強我們在模擬領域的地位。

In relation to your IP question and particularly the predictability of IP revenue, our focus remains on profitable growth through differentiated STAR IP that's highly reusable and easier to scale. And I've been very pleased with the discipline from the management team that run that business for us and their ability to target more profitable and sustainable revenue growth.

關於您的 IP 問題，尤其是 IP 收入的可預測性，我們的重點仍然是通過高度可重複使用且更易於擴展的差異化 STAR IP 實現盈利增長。我對為我們經營該業務的管理團隊的紀律以及他們實現更高利潤和可持續收入增長的能力感到非常滿意。

That's what we ask for. We always ask them to run IP like it's our family business, sign us up to business that you'd want to do if this was your family business, not just a public company. But -- and of course, with IP, in amongst that profitable, sustainable, regular recurring revenue, there's also some upfront components to IP that can have more variability.

這就是我們所要求的。我們總是要求他們像經營我們的家族企業一樣經營知識產權，如果這是您的家族企業，而不僅僅是一家上市公司，我們會為您註冊您想做的業務。但是——當然，對於 IP，在盈利的、可持續的、定期的經常性收入中，IP 的一些前期組件可能會有更多的可變性。

Naturally, we're cautious on that going forward, but we'll have to look at the macroeconomic environment on the impact of that for next year, but we see a lot of upfront revenue this year in our numbers. I think upfront revenue for 2022 is on track to be almost 50% growth year-over-year. That sets up some pretty tough comps for next year. So we'll look at that carefully.

自然，我們對此持謹慎態度，但我們必須關注宏觀經濟環境對明年的影響，但我們在今年的數據中看到了很多前期收入。我認為 2022 年的前期收入有望實現近 50% 的同比增長。這為明年設置了一些非常艱難的比賽。因此，我們將仔細研究。

Now most of that's coming on the hardware side. But when I look at all of the business, all the businesses across Cadence, they're all on track to go by low teens or more growth this year. And like I said, very, very pleased with the predictability of the IP business, particularly because they focused on profitable and sustainable revenue growth for us.

現在大部分都來自硬件方面。但是，當我查看所有業務時，Cadence 的所有業務，它們都有望在今年實現十幾歲或更多的增長。就像我說的，對 IP 業務的可預測性非常非常滿意，特別是因為他們專注於為我們帶來盈利和可持續的收入增長。

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

您的下一個問題來自美國銀行證券公司的 Vivek Arya。

I wanted to ask the China question in a different way. How much of your 17% of sales to China were to customers that were involved in or would eventually be involved in sub 14-nanometer logic design or leading edge NAND or DRAM? I guess it's just not intuitive that leading-edge design is not possible without your tools. China just got restricted from doing leading edge, yet you're not seeing the restriction in any way. It's just not intuitive to me at all.

我想以不同的方式問中國問題。在您對中國的 17% 銷售額中，有多少是涉及或最終將涉及亞 14 納米邏輯設計或前沿 NAND 或 DRAM 的客戶？我想如果沒有你的工具，前沿設計是不可能的，這並不直觀。中國剛剛在領先優勢方面受到限制，但您並沒有以任何方式看到這種限制。這對我來說根本不直觀。

Vivek, I mean we've taken the necessary steps to be in full compliance with the new export regulations. And our guidance includes the full impact. But we haven't broken out how much of our China revenue is sub 14-nanometer. But we do believe the impact to the company is limited and manageable.

Vivek，我的意思是我們已經採取了必要的措施來完全遵守新的出口法規。我們的指導包括全面的影響。但我們還沒有公佈我們在中國的收入中有多少是低於 14 納米的。但我們確實認為，對公司的影響是有限且可控的。

But is that a near-term view, John, in that is it because you are more involved in analog? Is it because you are in 2- or 3-year contracts? Or is it because you think that there is other revenue sources outside of China that can help you kind of offset that deficit?

但這是短期的觀點嗎，約翰，是因為你更多地參與了模擬嗎？是因為你有 2 年或 3 年的合同嗎？還是因為您認為中國以外還有其他收入來源可以幫助您抵消赤字？

Well, we also feel it's limited in the management going forward. Again, I mean we're applying these rules. These new U.S. export restrictions, we've applied them. We've included the impact in our guide. We believe it's limited. And like I say, manageable from an R&D perspective. And we have to look at some resources and maybe redeploy some of those resources.

好吧，我們也覺得它在未來的管理中受到限制。同樣，我的意思是我們正在應用這些規則。這些新的美國出口限制，我們已經應用了。我們已經在我們的指南中包含了影響。我們認為它是有限的。就像我說的，從研發的角度來看是可以管理的。我們必須查看一些資源，並可能重新部署其中一些資源。

Okay. And for my follow-up, I'm curious, what happens if semiconductor sales go down 10% or 15% next year? What happens to the budget for EDA? Like even if you don't decline, is it possible that the growth rate slows down from the mid-teens? Or I guess asked in a different way, under what scenario would Cadence's growth rate slow down next year?

好的。對於我的後續行動，我很好奇，如果明年半導體銷售額下降 10% 或 15% 會發生什麼？ EDA 的預算會發生什麼變化？就像即使你不下降，增長速度是否有可能從十幾歲開始放緩？或者我猜換個方式問，在什麼情況下，Cadence 明年的增速會放緩？

This is Anirudh. First of all, I think you know already, I just want to remind you that we believe our business is more resilient. But of course, we are not immune to macroeconomic situation, right? So it will depend on -- at a high level, it will depend on if there is a recession, how severe the recession is, right? Is it a mild recession or it's like a very, very severe recession? So if it's a very, very severe recession, then, of course, nobody is immune to it.

這是阿尼魯德。首先，我想你已經知道了，我只是想提醒你，我們相信我們的業務更有彈性。但是，當然，我們也不能倖免於宏觀經濟形勢，對吧？所以這將取決於 - 在較高的水平上，這將取決於是否存在衰退，衰退的嚴重程度，對吧？是溫和的衰退還是非常非常嚴重的衰退？因此，如果這是一場非常非常嚴重的衰退，那麼當然沒有人能倖免於難。

But in general, from our kind of business, I think there are 3 factors that makes it more resilient. So one, as you know, we are essential part of the design process. So we are not tied directly to volume or shipment modes to design activity and then design activities there, both in the semi companies and, of course, the system companies. And we are also expanding our portfolio into systems.

但總的來說，從我們的業務來看，我認為有 3 個因素使它更具彈性。因此，如您所知，我們是設計過程的重要組成部分。因此，無論是在半導體公司，當然還有系統公司，我們都不會直接將設計活動與設計活動聯繫到數量或發貨模式，然後再在那裡進行設計活動。我們還將我們的產品組合擴展到系統中。

So I think first part is we are more essential and tied to R&D. Second part, as you know, we are very ratable. Most of our revenue is ratable. And third part is we are very diversified in multiple geographies and verticals. So that gives us more resiliency than other companies in this environment. But of course, like I said, we are not immune to it, especially if there's a very severe kind of correction. And so we are carefully monitoring that. And I think when we talk to you next time in January, we'll have more information on the macro situation and can provide more color for next year.

所以我認為第一部分是我們更加重要並且與研發聯繫在一起。第二部分，如你所知，我們非常受好評。我們的大部分收入都是可評估的。第三部分是我們在多個地區和垂直領域非常多元化。因此，在這種環境下，我們比其他公司更具彈性。但是，當然，就像我說的那樣，我們也不能倖免，特別是如果有非常嚴重的修正。因此，我們正在仔細監控這一點。而且我認為，當我們在 1 月份下次與您交談時，我們將獲得有關宏觀形勢的更多信息，並可以為明年提供更多色彩。

Yes. And the macro will really impact upfront more. I mean we are very resilient, robust stream of recurring revenue. I think that's what Jay was getting at in his earlier question about the predictability of the IP business. I feel very confident in the IP business because we've been focused on profitable and sustainable revenue growth there, but we've had a really strong hardware revenue year this year. And I don't know myself, if there's a severe downturn in macroeconomic conditions, IT budgets are one of the first things that you look at in terms of do you need to purchase hardware and capital equipment and things like that. And that could impact us on the upfront side.

是的。而且宏觀確實會產生更多的前期影響。我的意思是我們非常有彈性，經常性收入來源強勁。我認為這就是 Jay 在他早先關於 IP 業務可預測性的問題中所要表達的意思。我對 IP 業務充滿信心，因為我們一直專注於那裡的盈利和可持續收入增長，但今年我們的硬件收入非常強勁。而且我自己也不知道，如果宏觀經濟狀況嚴重下滑，IT 預算是您首先要考慮的事情之一，您是否需要購買硬件和資本設備等。這可能會在前期影響我們。

Your next question comes from Harlan Sur with JPMorgan.

您的下一個問題來自摩根大通的 Harlan Sur。

Maybe as a follow-up to the last question. So your functional verification portfolio, which includes hardware emulation and prototyping, right, that's up 25% through the first 9 months of this year. Very strong growth. But if I think about a weaker semi industry next year and think about where the risk would be, you talked about some of the upfront portion of your revenues, and I think about hardware emulation and prototyping platforms. But then on the flip side, we continue to hear that design verification and early software development continue to be very significant bottlenecks in these next-generation digital SoC chip design, so actually very critical to your customers' overall design process. Do you guys agree with this? And given your pipeline visibility, backlog, do you see your hardware emulation and prototyping pipeline, at least as you're looking at it now, remaining relatively strong into next year?

也許作為最後一個問題的後續行動。因此，您的功能驗證產品組合，包括硬件仿真和原型設計，在今年前 9 個月增長了 25%。非常強勁的增長。但是，如果我考慮明年半導體行業的疲軟並考慮風險將在哪裡，您談到了您收入的一些前期部分，我想到了硬件仿真和原型設計平台。但另一方面，我們不斷聽到設計驗證和早期軟件開發仍然是這些下一代數字 SoC 芯片設計中非常重要的瓶頸，因此實際上對客戶的整體設計過程非常關鍵。你們同意這個嗎？鑑於您的管道可見性和積壓，您是否看到您的硬件仿真和原型設計管道，至少在您現在看到的情況下，在明年保持相對強勁？

So from a backlog perspective, we probably have 6 months of hardware revenue in backlog. But any kind of increased issues on the macroeconomic front will probably slow down hardware purchasing going forward. But we'll need another few months to assess what the climate is like there. But hardware is really a pipeline business. You get about 3 or 6 months kind of visibility into what that pipeline looks like.

因此，從積壓的角度來看，我們可能有 6 個月的積壓硬件收入。但是，宏觀經濟方面任何類型的增加問題都可能會減慢硬件採購的步伐。但是我們還需要幾個月的時間來評估那裡的氣候。但硬件實際上是一個管道業務。您可以獲得大約 3 或 6 個月的時間來了解該管道的外觀。

The -- so again, I think on the hardware side, it's been a phenomenal year. The functional verification group has had a tremendous year this year. We'll be lapping some tough comps next year, but we need a few more months to assess before we can guide anything to next year.

- 再說一次，我認為在硬件方面，這是非凡的一年。功能驗證組今年是豐收的一年。明年我們將進行一些艱難的比賽，但我們還需要幾個月的時間來評估，然後才能指導明年的任何事情。

But in general, your thesis is correct. I mean hardware almost become indispensable to the design of chips and electronic systems. So without these emulation and prototyping platforms, it's almost impossible to design that. And as the chips get bigger, as you go to near nodes, the chips, in terms of -- they get bigger in terms of number of gates, right, so the next node always has more gate than the previous node, even if the chip size is the same as you know. So as the chip number of gates gets larger. It requires more and more verification and emulation.

但總的來說，你的論文是正確的。我的意思是硬件幾乎成為芯片和電子系統設計不可或缺的一部分。因此，如果沒有這些仿真和原型設計平台，幾乎不可能進行設計。隨著芯片變大，當你靠近節點時，芯片，就 - 它們在門的數量方面變得更大，對，所以下一個節點總是比前一個節點有更多的門，即使芯片大小和你知道的一樣。因此，隨著門的芯片數量變大。它需要越來越多的驗證和仿真。

So overall, I think there is a systemic kind of support of how much emulation and verification needs to be done. So it just depends on how that overall baseline growth required gets affected by any large macroeconomic shifts. But in general, these hardware platforms are almost indispensable now as you do design and almost all our big customers are relying on them. Yes.

所以總的來說，我認為有一種系統性的支持來支持需要進行多少仿真和驗證。因此，這僅取決於所需的總體基線增長如何受到任何重大宏觀經濟變化的影響。但總的來說，這些硬件平台現在幾乎是必不可少的，因為您進行設計並且幾乎我們所有的大客戶都依賴它們。是的。

And from a business perspective, I mean we're building out our cloud infrastructure to be able to provide that hardware in the cloud. So that changes spend for emulation capacity from being capital spend to expense spending. Now from a revenue standpoint, though, emulation capacity that's used in the cloud, we would have to recognize that revenue ratably. But we do have a business solution if there is cutbacks on CapEx spending.

從業務角度來看，我的意思是我們正在構建我們的雲基礎設施，以便能夠在雲中提供該硬件。因此，將用於仿真能力的支出從資本支出轉變為費用支出。但是，現在從收入的角度來看，在雲中使用的仿真能力，我們必須按比例確認收入。但是，如果削減資本支出，我們確實有一個商業解決方案。

I appreciate that. And maybe just a longer-term question because we're hearing more and more about this. But on the move to 800 gig and higher optical space in the data center, this is driving a pretty strong focus on more integrated silicon photonics-based solutions, either optical module-based or co-package electrooptical. Intel, Marvell, Broadcom, NVIDIA, Cisco, all of some of your big customers are all working on [insightful] solutions. I know you guys have a pretty strong portfolio here. You've got Virtuoso photonics. I think you've got some of your advanced packaging and module design solutions, thermal and power modeling solutions as well. And you guys also have pretty strong partnerships with some of the manufacturing guys. How do you guys see this market opportunity unfolding for the team over the next few years?

我很感激。也許只是一個長期的問題，因為我們聽到越來越多的關於這個問題。但在數據中心向 800 gig 和更高光學空間遷移的過程中，這促使人們更加關注基於矽光子的集成度更高的解決方案，無論是基於光學模塊還是聯合封裝電光。英特爾、Marvell、博通、英偉達、思科，您所有的一些大客戶都在研究 [有洞察力的] 解決方案。我知道你們在這裡有一個非常強大的投資組合。你有 Virtuoso photonics。我認為您已經獲得了一些先進的封裝和模塊設計解決方案，以及熱和功率建模解決方案。你們還與一些製造商建立了非常牢固的合作夥伴關係。在接下來的幾年裡，你們如何看待這個市場機會為團隊展開的？

Yes, that's a great point. I mean photonics is big, and then you also touched on package-level integration. So I mean these things again play to the -- we are in a good position there based to the strength of Cadence. A lot of these things are done in Virtuoso platform, which is the flagship platform, and then also Allegro, which is, again, a flagship platform for advanced packaging.

是的，這是一個很好的觀點。我的意思是光子學很大，然後您還談到了封裝級集成。所以我的意思是這些東西再次發揮作用 - 基於Cadence的實力，我們在那里處於有利位置。很多這些事情都是在旗艦平台 Virtuoso 平台上完成的，然後在 Allegro 平台上完成，這也是先進封裝的旗艦平台。

And then over the last 4 years, we have built all these analysis tools, like Clarity and Celsius for electromagnetics and thermal, which are critical for photonics and 3D-IC. So we have a pretty broad solution. And that's the other exciting part is there are multiple vectors of growth that are possible with Cadence. And this is definitely a very exciting area, as you know. So we are working with all the -- because of our position in Virtuoso and Allegro and the new analysis tools, we are working in this very important market.

然後在過去 4 年中，我們構建了所有這些分析工具，例如用於電磁學和熱學的 Clarity 和 Celsius，這對於光子學和 3D-IC 至關重要。所以我們有一個相當廣泛的解決方案。另一個令人興奮的部分是，Cadence 可以實現多種增長向量。如您所知，這絕對是一個非常令人興奮的領域。因此，我們正在與所有人合作——由於我們在 Virtuoso 和 Allegro 中的地位以及新的分析工具，我們正在這個非常重要的市場上工作。

Your next question comes from Gal Munda with Wolfe Research.

您的下一個問題來自 Gal Munda 和 Wolfe Research。

Maybe the first one, John, for you. When I think about the guide heading into Q4, especially around the OpEx, it was implied to get to that level of profitability. Is there anything accelerated? Anything that we need to kind of factor in there in terms of the hiring on cost side? Or do you think -- I think incremental margins just implied is kind of low 30s to get you to that number. Is it more conservative? How would you kind of assess that part of the guide?

也許是第一個，約翰，適合你。當我考慮進入第四季度的指南時，尤其是在運營支出方面，暗示要達到那個盈利水平。有什麼加速的嗎？在成本方面的招聘方面，我們需要考慮哪些因素？或者你認為 - 我認為只是暗示的增量利潤率有點低 30 讓你達到這個數字。是不是比較保守？你會如何評估指南的這一部分？

Yes. Sure. Good question, Gal. But on the operating expense side, of course, it includes a full quarter now of expense for OpenEye Scientific and Future Facilities, plus incremental hiring that we did during Q3 and intend to do again in Q4. Because you get the full [biowave] effect of any hiring in Q3. You have a full quarter of that expense in Q4.

是的。當然。好問題，蓋爾。但在運營費用方面，當然，它包括 OpenEye 科學和未來設施的整個季度費用，以及我們在第三季度所做的增量招聘，並打算在第四季度再次進行。因為您在第三季度獲得了任何招聘的完整 [生物波] 效應。您在第四季度有整整四分之一的費用。

Also, on the bookings front, we've had seen substantial increase in bookings compared to our forecast this year, that sales have been very, very good. And so there will be increased commission costs embedded into that Q4 guide as well.

此外，在預訂方面，與我們今年的預測相比，我們的預訂量大幅增加，銷售非常非常好。因此，第四季度指南中也會增加佣金成本。

Okay. That's helpful. As a follow-up, obviously, hardware has done really well this year. But if you think about back when you introduced it Q4, the guide for the year, and then this is the third raise in a row, what -- look back 9 months, what is the thing that surprised you most? Was it the hardware itself, how strong it's been this year? Or has there been anything else that's allowed you to keep raising the guide on the top line throughout the year?

好的。這很有幫助。作為後續，顯然，今年硬件做得非常好。但是，如果您回想一下當您介紹 Q4 時，今年的指南，然後這是連續第三次加薪，什麼 - 回顧 9 個月，最讓您驚訝的是什麼？是硬件本身，今年有多強？或者還有什麼其他的東西可以讓你在一年中不斷提高指南的最高水平？

I've been very, very pleased with the performance of all the businesses. Like I said, every single one of our businesses is performing exceptionally well. The lowest-performing business is showing teen growth year-over-year. Absolutely tremendous. Now what I wasn't expecting was upfront revenue to grow by almost 50% over 2021. I don't think any of us would ever have predicted that. But you're seeing a lot of that upfront revenue coming through from hardware. Just the popularity of our emulation systems has just been off the charts. And long may it continue, but it's is very hard to determine how long that will continue for.

我對所有業務的表現非常非常滿意。就像我說的，我們的每一項業務都表現得非常出色。表現最差的業務顯示出同比增長。絕對厲害。現在，我沒想到的是，2021 年的前期收入將增長近 50%。我認為我們中的任何人都不會預料到這一點。但是您會看到很多前期收入來自硬件。只是我們的仿真係統的受歡迎程度剛剛超出圖表。它可能會持續多久，但很難確定它會持續多久。

We do have substantial backlog already and a long lead time, and we're making those systems as fast as we possibly can. I think if you have a look at the inventory, we've less than $10 million of finished goods there. The vast majority of that is already out on demonstration with customers. But -- so there's a triage situation that goes on every system that comes off the production line. There's a plan for getting that out to a customer as quickly as possible.

我們確實已經有大量的積壓工作並且交貨時間很長，我們正在盡可能快地製作這些系統。我想如果你看看庫存，我們那裡的成品不到 1000 萬美元。其中絕大多數已經在向客戶展示。但是——所以每個從生產線上下來的系統都會出現分類情況。有一個計劃可以盡快將其傳達給客戶。

Your next question comes from [Johnny Conti] from Deutsche Bank Securities.

您的下一個問題來自德意志銀行證券公司的 [Johnny Conti]。

Congratulations on delivering another great quarter. Now given the strong clear performance that you've had in system design analysis and JedAI and Cerebrus, could you perhaps give some color on how your customers are reacting to budgetary decisions regarding spend in this category given the current economic climate? Are you seeing customers' stickiness similar to that of the EDA consumption? Or is this bucket of software spend more volatile to economic (inaudible)? I'd imagine companies, particularly for this bucket, are more defensive, generally speaking. I'll ask a follow-up after.

祝賀你又交付了一個偉大的季度。現在，鑑於您在系統設計分析以及 JedAI 和 Cerebrus 方面的出色表現，您能否就當前經濟環境下您的客戶對此類支出的預算決策有何反應？您是否看到與 EDA 消費類似的客戶粘性？還是這批軟件的支出對經濟的影響更大（聽不清）？一般來說，我認為公司，特別是對於這個桶，更具防禦性。之後我會問後續。

This is Anirudh. So I mean it's a good question. The real -- like I mentioned, we are pleased with the adoption of these AI-based solutions because I think it can provide more automation than what EDA tools have done in the past. And to some extent, they are also deflationary. We have opportunity, I think, for the entire industry to move more of the work from people to automation, from people to tools.

這是阿尼魯德。所以我的意思是這是一個很好的問題。真正的——就像我提到的那樣，我們對採用這些基於人工智能的解決方案感到高興，因為我認為它可以提供比 EDA 工具過去所做的更多的自動化。而且在某種程度上，它們也是通貨緊縮的。我認為，我們有機會讓整個行業將更多的工作從人轉移到自動化，從人轉移到工具。

And this is possible because we have JedAI and then Cerebrus, Optimality and Verisium. A lot of the lower-level tasks which were very mundane can be automated, and the designer can focus on more value-add, higher tasks. That's the theme of our kind of AI-based solution is we move the mundane work, make the designer focus on higher value work, help in terms of you need the same resources, can you do more work?

這是可能的，因為我們有 JedAI，然後是 Cerebrus、Optimality 和 Verisium。許多非常平凡的低級任務可以自動化，設計師可以專注於更多增值、更高的任務。這就是我們這種基於人工智能的解決方案的主題是我們移動平凡的工作，讓設計師專注於更高價值的工作，幫助你需要相同的資源，你能做更多的工作嗎？

And that theme is very popular, and I've met all these CEOs over the last 3 to 6 months. And that's even popular in a tough environment because there's need for more automation. And it's even more -- so this is actually very timely, the launch of AI-based solutions, launch of Cerebrus, because the productivity of the organization goes up and also productivity of its talent because a lot of companies, 1 big issue is they have large teams, which are deployed across multiple countries or locations. And the question always is, are you getting enough value from all the locations? And something like Cerebrus or AI-based solution naturally uplifts the talent of your whole organization because these algorithms are the same, whether they run in one part of the world or the other.

這個主題很受歡迎，在過去的 3 到 6 個月裡，我遇到了所有這些 CEO。這在惡劣的環境中甚至很受歡迎，因為需要更多的自動化。甚至更多——所以這實際上非常及時，推出基於人工智能的解決方案，推出 Cerebrus，因為組織的生產力提高了，而且人才的生產力也提高了，因為很多公司，一個大問題是他們擁有分佈在多個國家或地區的大型團隊。問題始終是，您是否從所有地點獲得了足夠的價值？像 Cerebrus 或基於 AI 的解決方案這樣的東西自然會提升整個組織的人才，因為這些算法是相同的，無論它們在世界的一個地方還是另一個地方運行。

So I think the AI-based solutions, this is very timely and appropriate in this kind of tough environment. And I think we have a very good platform with JedAI and then we have 3 major solutions on top of it. And we will do more. I mean you'll see more from us next year in this area. So we are very pleased with the progress, and I think it's very timely to the situation we are in, the macro situation.

所以我認為基於人工智能的解決方案，在這種艱難的環境中是非常及時和合適的。我認為我們有一個非常好的 JedAI 平台，然後我們有 3 個主要的解決方案。我們會做得更多。我的意思是你明年會在這個領域看到更多來自我們的信息。所以我們對進展感到非常滿意，我認為這對我們所處的宏觀形勢非常及時。

Right. Just could you shed some color on whether there have been any changes to the backlog growth pipeline conversion, lengthening of sales cycles, given all of what's happening in software? Are your expectations unchanged to that report in Q2 whereas (inaudible) half of the backlog is expected to flow in revenues over the next 12 months. Maybe any commentary here on sort of economic impacts for next year will be fantastic. I'm just trying to understand if there's any material changes to your backlog to pipeline conversion in how you're looking at it compared to 3 months ago. And yes, any kind of color there would be great.

正確的。鑑於軟件中正在發生的所有事情，您能否就積壓增長管道轉換、銷售週期延長是否有任何變化？您對第二季度報告的期望是否不變，而（聽不清）一半的積壓訂單預計將在未來 12 個月內流入收入。也許任何關於明年經濟影響的評論都會很棒。我只是想了解與 3 個月前相比，您的積壓到管道轉換的方式是否有任何重大變化。是的，任何一種顏色都會很棒。

Fair point, [Johnny], that when I look at the current RPO, I'm -- despite the fact that it's slightly down from Q2 to Q3, but -- slightly down, including the impact of the latest U.S. export restrictions, but also including the fact that we ship more hardware into China in Q3. The -- I feel very, very confident in the current RPO and the RPO and very, very pleased with the growth that we've seen there.

公平點，[約翰尼]，當我查看當前的 RPO 時，我 - 儘管它從第二季度到第三季度略有下降，但是 - 略有下降，包括美國最新出口限制的影響，但是還包括我們在第三季度向中國運送更多硬件的事實。 - 我對當前的 RPO 和 RPO 感到非常非常有信心，並且對我們在那裡看到的增長非常非常滿意。

That's typically -- I know you've just started covering us. But typically, what we tend to see is about 55% of what we have in backlog turns up in revenue in the next 12 months. But -- and generally, Q4 is a good kind of add-on quarter for us for growing that current RPO. But -- so I feel very pleased in terms of where we are.

這通常是——我知道你剛剛開始報導我們。但通常情況下，我們傾向於看到的是，在未來 12 個月內，我們積壓的約 55% 會變成收入。但是 - 一般來說，第四季度是我們增加當前 RPO 的一個很好的附加季度。但是——所以我對我們所處的位置感到非常高興。

Annual value is about $2.7 billion now off of a backlog -- total backlog of $5.5 billion. The annual value is $2.7 billion, $5.5 billion represents time, but $2.7 billion is the annual value there. And I would anticipate that, that should grow through to the end of the year and set us up well for next year for our recurring revenue. But the upfront revenue is a lot more difficult to predict because it tends to be more lumpy.

現在積壓的年價值約為 27 億美元——總積壓為 55 億美元。年價值是 27 億美元，55 億美元代表時間，但 27 億美元是那裡的年價值。我預計，這應該會增長到今年年底，並為明年的經常性收入做好準備。但前期收入更難預測，因為它往往更加不穩定。

Right. That's very fair. Yes. It's interesting to see how much from revenue is actually generated this year. Yes. Fair enough.

正確的。這很公平。是的。有趣的是，今年實際產生了多少收入。是的。很公平。

Your next question comes from Joe Vruwink from Baird & Co.

您的下一個問題來自 Baird & Co. 的 Joe Vruwink。

Great. I wanted to go back to the IP topic and specifically ask about the record award. If I look at your noncancelable access arrangements, it looks like that value went from $171 million to $434 million. Is that primarily reflecting this award? And then is there anything unusual? Or is this a normal term length, so kind of reading between the lines, this big step-up in kind of what's visible in backlog, we should see that kind of hitting revenue next year?

偉大的。我想回到IP話題，專門問一下唱片獎。如果我看看你們不可取消的訪問安排，看起來這個價值從 1.71 億美元增加到 4.34 億美元。這主要反映了這個獎項嗎？然後有什麼不尋常的嗎？或者這是一個正常的任期長度，所以字裡行間的閱讀，在積壓中可見的這種巨大的進步，我們應該在明年看到這種打擊收入？

Yes, Joe, that record contract in IP is included in our noncancelable commitments, in our number in our backlog. The -- we're delighted with the performance of the IP team and how well they're doing. What's interesting, what I always find as kind of not intuitive when you look at Cadence's results is that sometimes in the biggest bookings quarters, you may not have a great increase in your current RPO for that particular business.

是的，喬，知識產權方面的創紀錄合同包含在我們不可取消的承諾中，在我們積壓的數量中。 - 我們對 IP 團隊的表現以及他們的表現感到高興。有趣的是，當您查看 Cadence 的結果時，我總是覺得有點不直觀的是，有時在最大的預訂季度中，您當前的 RPO 可能不會大幅增加該特定業務。

So I find when you have big renewals coming around, we tend to play defense on the renewal and then leave room for add-on opportunities later. But so often you can have a big bookings quarter may not generate a huge amount of growth in current RPO. And then in contrast, you might have lower bookings quarters where there's a lot of add-on opportunities get booked in those quarters, and that can increase your current RPO and drive growth for the company.

所以我發現當你有大的續約到來時，我們傾向於對續約進行防守，然後為以後的附加機會留出空間。但是，經常有一個大的預訂季度可能不會在當前的 RPO 中產生大量的增長。然後相比之下，您可能有較低的預訂季度，在這些季度中有很多附加機會被預訂，這可以增加您當前的 RPO 並推動公司的增長。

But in this particular case, it's a record contract. So you're trying to pay more defense on something like that. So you haven't seen a huge uptick in current RPO for IP this quarter, but I think that will come later.

但在這種特殊情況下，這是一份創紀錄的合同。所以你試圖為這樣的事情付出更多的防禦。因此，本季度您還沒有看到當前 IP 的 RPO 大幅上升，但我認為這將在以後出現。

Okay. Okay. That is helpful. And then I appreciate you're not guiding to next year, but there has been some conversations just around how good upfront deliveries have been this year, and obviously, that creates a tough comp. I wanted to take the other component and just focus on recurring revenue. And John, I think in the past, you kind of framed recurring revenue on a 3-year CAGR basis. Last quarter, the number was, I think, 12% to 13%. And then you mentioned how you thought that rate of growth was sustainable going forward. Just a quarter later, some things have changed, but given the visibility you have in hand today, any difference that you would comment on kind of 12%, 13% or some other rates on a kind of 3-year CAGR basis as it just pertains to recurring revenue?

好的。好的。這很有幫助。然後我很感激你沒有為明年提供指導，但是圍繞今年的前期交付情況進行了一些對話，顯然，這造成了艱難的競爭。我想採取其他組成部分，只專注於經常性收入。約翰，我認為過去，您將經常性收入設定為 3 年復合年增長率。上個季度，我認為這個數字是 12% 到 13%。然後你提到你認為未來的增長率是可持續的。僅僅一個季度後，有些事情發生了變化，但鑑於您今天掌握的可見性，您會在 3 年復合年增長率的基礎上評論 12%、13% 或其他一些利率的任何差異，因為它只是與經常性收入有關嗎？

Great question, Joe. I think I would characterize my opinion on our recurring revenue, I'm more confident now post the -- now that we know what the U.S. export restrictions are, I think I'm more confident in our recurring revenue going forward now than I was this time last quarter.

好問題，喬。我想我會描述我對經常性收入的看法，我現在更有信心發布 - 現在我們知道美國的出口限制是什麼，我認為我現在對我們的經常性收入比以前更有信心上個季度的這個時候。

I think the challenge from a macroeconomic standpoint is how the -- what the macro climate does to our upfront business for next year. I mean that's the toughest one to predict. That's why we need an extra few months just to figure out what that means for next year.

我認為從宏觀經濟的角度來看，挑戰在於宏觀氣候對我們明年的前期業務有何影響。我的意思是這是最難預測的。這就是為什麼我們需要額外的幾個月來弄清楚這對明年意味著什麼。

Your next question comes from Blair Abernethy from Rosenblatt Securities.

您的下一個問題來自 Rosenblatt Securities 的 Blair Abernethy。

Nice quarter, guys. Just wanted to talk a little bit about the Cadence on cloud and, in particular, the Palladium Cloud. Can you just walk us through sort of how you're looking at this cloud-based emulation? How -- as a customer coming to you having to make a decision between an on-prem hardware solution versus Palladium Cloud, just walk us through that a little bit. And maybe how are you thinking about or how are you approaching pricing?

不錯的季度，伙計們。只是想談談雲上的 Cadence，尤其是鈀雲。您能否簡單介紹一下您如何看待這種基於雲的仿真？如何——作為客戶來找您，必須在本地硬件解決方案與 Palladium Cloud 之間做出決定，請讓我們稍微了解一下。也許您是如何考慮或如何接近定價的？

Blair, this is Anirudh. Thanks for asking this question. That's a very important point. So in general, we really like these cloud offerings, especially for hardware. Because even if you think about in the regular cloud, right, with the CPU cloud by the big cloud vendors, what they're doing is they're amortizing hardware across multiple customers and moving from a -- more from a CapEx to OpEx model. So the cloud model has been successful in hardware first, right? And then you build all kinds of software solutions on top.

布萊爾，這是阿尼魯德。感謝您提出這個問題。這是非常重要的一點。所以總的來說，我們真的很喜歡這些雲產品，尤其是在硬件方面。因為即使您在常規雲中考慮，對，對於大型雲供應商的 CPU 雲，他們正在做的是將硬件攤銷給多個客戶，並從 - 更多地從資本支出模式轉變為運營支出模式.所以雲模式在硬件上已經成功了，對吧？然後你在上面構建各種軟件解決方案。

So this is the same hope for our Palladium business. We would want more and more customers to go to our cloud offering because that also makes the hardware business more and more ratable and also gives a lot of flexibility to our customers because one of the issues with Palladium and Protium being even more popular than they are now is that sometimes the smaller companies are not able to deploy as much as some of the big companies because there is the upfront cost to get like a full Palladium rack. Whereas if you have them on the cloud, it gives access to a lot of small companies also to use hardware emulation as they're doing more and more complicated designs. And then the second reason, of course, it makes it more and more ratable.

所以這也是我們鈀金業務的希望所在。我們希望越來越多的客戶使用我們的雲產品，因為這也使硬件業務越來越受歡迎，也為我們的客戶提供了很大的靈活性，因為鈀和 Protium 的問題之一是比他們更受歡迎現在的情況是，有時小公司無法像一些大公司那樣部署那麼多，因為要獲得一個完整的 Palladium 機架需要前期成本。然而，如果你將它們放在雲上，它可以讓許多小公司也可以使用硬件仿真，因為他們正在做越來越複雜的設計。然後是第二個原因，當然，它使它越來越受歡迎。

So we prefer -- we encourage all our customers to move to the cloud. And we have built infrastructure in data centers together with some big data center partners to have this capacity in the cloud. So now it depends on customer choice, right? Now if the customer wants to buy more for in-house use, then of course, we support that. But I think I feel customers are becoming more and more flexible in terms of whether they want to deploy on-prem or on the cloud, I mean, the hardware that they buy from us. And like what John was saying earlier, in this kind of tough environment, if they want to reduce CapEx and use more OpEx, then Palladium Cloud gives that opportunity, okay? So I mean this is something we have been building for several years, and we'll see how it goes. But in general, we want to encourage all our customers to move to the hardware cloud.

所以我們更喜歡——我們鼓勵我們所有的客戶遷移到雲端。我們與一些大數據中心合作夥伴一起在數據中心構建了基礎設施，以便在雲中擁有這種能力。所以現在這取決於客戶的選擇，對吧？現在，如果客戶想購買更多供內部使用，那麼我們當然支持。但我認為我覺得客戶在他們想要在本地部署還是在雲上部署方面變得越來越靈活，我的意思是，他們從我們這裡購買的硬件。就像約翰之前所說的，在這種艱難的環境中，如果他們想減少資本支出並使用更多的運營支出，那麼鈀雲提供了這個機會，好嗎？所以我的意思是，這是我們多年來一直在構建的東西，我們將看看它是如何進行的。但總的來說，我們希望鼓勵所有客戶遷移到硬件雲。

On the -- on cloud, which is on the software piece, I think like we talked about in the last earnings call, that's also great for start-ups and also for system companies that don't have big IP department -- I mean IT departments and data centers. So we really feel that on cloud, that's why we started first with system products from Cadence, is suitable for -- because system companies, there could be like 50,000, 70,000 customers in that space. And then some of them are big, of course, and have their own data centers, but a lot of them are not as big and they prefer this kind of cloud. And it also helps us go to the long tail in a much more smarter way.

在軟件部分的雲上，我認為就像我們在上次財報電話會議中談到的那樣，這對於初創企業以及沒有大型 IP 部門的系統公司來說也很棒——我的意思是IT 部門和數據中心。所以我們真的覺得在雲上，這就是為什麼我們首先從 Cadence 的系統產品開始，適合——因為系統公司，在那個空間可能有大約 50,000 到 70,000 個客戶。當然，其中一些很大，並且有自己的數據中心，但很多沒有那麼大，他們更喜歡這種雲。它還幫助我們以更聰明的方式進入長尾。

We want to innovate not just on the product side but go-to-market side. So especially innovating on the system side, the long tail on cloud is great. And Palladium and Protium Cloud are even good for the EDA big customers because it gives more ratability and flexibility and choices on how they buy hardware. So overall, I think these are 2 very strategic areas for us. And we want to encourage our customers to use more and more of these cloud offerings.

我們不僅要在產品方面進行創新，還要在進入市場方面進行創新。所以特別是在系統方面進行創新，雲上的長尾非常棒。 Palladium 和 Protium Cloud 甚至對 EDA 大客戶有好處，因為它為他們購買硬件的方式提供了更多的可評價性、靈活性和選擇。所以總的來說，我認為這對我們來說是兩個非常具有戰略意義的領域。我們希望鼓勵我們的客戶使用越來越多的這些雲產品。

Our final question comes from Ruben Roy from Stifel, Nicolaus.

我們的最後一個問題來自 Nicolaus Stifel 的 Ruben Roy。

I think you have answered just about every question there was. But I wanted to maybe drill into the new customers on the digital design flow. Can you maybe talk a little bit about what type of customers you're seeing? Is that competitive displacements for traditional semiconductor companies or nontraditional, combination of both? And then I guess, attached to that, are you seeing a higher attach rate in either semiconductor companies or systems companies for hardware these days as you sign up these new deals on digital design?

我想你已經回答了幾乎所有的問題。但我想深入了解數字設計流程的新客戶。你能談談你所看到的客戶類型嗎？這是傳統半導體公司的競爭替代還是非傳統的，兩者的結合？然後我猜想，與此相關的是，當您簽署這些數字設計新協議時，您是否看到這些天半導體公司或系統公司的硬件附加率更高？

Ruben, great points. So in general, in terms of the digital business, I think it's both, new customers and existing customers and taking share. In general, I think what's great about Cerebrus, one is, like I mentioned earlier, it does more automation of mundane task. It's almost like having automatic driving versus manual driving, right? You don't have to control all the knobs and all the tedious works. The tool does it for you. But it also unifies the platform.

魯本，偉大的觀點。因此，總的來說，就數字業務而言，我認為既是新客戶，也是現有客戶，並分享份額。總的來說，我認為 Cerebrus 的優點之一是，就像我之前提到的，它可以更自動化地完成日常任務。這幾乎就像自動駕駛與手動駕駛一樣，對吧？您不必控制所有的旋鈕和所有繁瑣的工作。該工具為您完成。但它也統一了平台。

We've been talking about unified synthesis placement and sign-off from, I don't know, 2014 or 2015. But I think Cerebrus naturally unifies the whole platform, too, because it can work across the whole synthesis, place and route and sign-off. So like I mentioned in my comments, there is a pull-through of synthesis and sign-off, along with place and route through Cerebrus, and we are seeing that. So we are pleased with the progress we are making in synthesis and sign-off, along with place and route implementation.

我們從 2014 年或 2015 年開始討論統一的合成佈局和簽核。但我認為 Cerebrus 自然也統一了整個平台，因為它可以在整個合成、佈局和佈線以及擱筆。所以就像我在評論中提到的那樣，有一個綜合和簽核，以及通過 Cerebrus 的佈局和路由，我們正在看到這一點。因此，我們對在綜合和簽核以及佈局佈線實施方面取得的進展感到滿意。

And then it does help in terms of full flow. So this drives like full flow wins, right, not just place and route. So I think in 2022, we have more than 40 new full flow wins. So that's helping our digital business. And you see this quarter, we had good growth in digital just like we had last quarter.

然後它確實有助於全流程。因此，這就像全流程獲勝一樣，對，不僅僅是佈局和佈線。所以我認為在 2022 年，我們有 40 多個新的全流勝利。所以這有助於我們的數字業務。你看這個季度，我們在數字方面有很好的增長，就像我們上個季度一樣。

Now on the hardware side, I mean that attach rate is there in the large kind of semi companies. But also there's a lot of hardware being used as system companies design semiconductors. Because by nature, as you know, system companies have more software, right? That's why they are a system company. So when you have software, you naturally need these hardware platform for software bring-up. So I think we are very pleased to see the growth of hardware, not just in the traditional large semi, but also in the large system companies. And then we try to do these new offerings, like I talked about, cloud, to help to lower barrier to entry for smaller companies, whether they're system or semi for hardware.

現在在硬件方面，我的意思是在大型半導體公司中存在附加率。但也有很多硬件被用於系統公司設計半導體。因為從本質上講，如您所知，系統公司擁有更多的軟件，對吧？這就是為什麼他們是一家系統公司。所以當你有軟件的時候，你自然需要這些硬件平台來進行軟件調動。所以我認為我們很高興看到硬件的增長，不僅在傳統的大型半導體公司，而且在大型系統公司。然後我們嘗試提供這些新產品，就像我談到的那樣，雲，以幫助降低小公司的進入門檻，無論它們是系統的還是硬件的半成品。

So overall, I think we are pleased with the progress of both digital and hardware, and we just carefully monitor it going forward.

所以總的來說，我認為我們對數字和硬件的進步感到滿意，我們只是仔細監控它的發展。

I will now turn it back to Anirudh Devgan for closing remarks.

我現在將把它轉回給 Anirudh Devgan 做結束語。

Thank you, everyone, for joining us this afternoon. We are excited about our business momentum and the tremendous market opportunities ahead of us. We are proud of the innovative and inclusive culture we have built at Cadence, and we are grateful for the recognitions we have received over the years, including most recently being named as one of the world's best workplaces for seventh time by Fortune and Great Place to Work. We are also honored to be included in the Investor Business Daily's 100 Best ESG Companies for 2022, the fourth year in a row that we have achieved this recognition.

謝謝大家今天下午加入我們。我們對我們的業務發展勢頭和擺在我們面前的巨大市場機會感到興奮。我們為在 Cadence 建立的創新和包容性文化感到自豪，我們感謝多年來獲得的認可，包括最近第七次被《財富》和 Great Place 評為全球最佳工作場所之一工作。我們也很榮幸被《投資者商業日報》評為 2022 年 100 家最佳 ESG 公司，這是我們連續第四年獲得此殊榮。

On behalf of our employees and our Board of Directors, we thank our customers, partners and investors for your continued trust and confidence in Cadence. We look forward to speaking with you again on our Q4 2022 earnings call. Thank you, and have a great evening.

我們代表我們的員工和董事會，感謝我們的客戶、合作夥伴和投資者一直以來對 Cadence 的信任和信心。我們期待在 2022 年第四季度財報電話會議上再次與您交談。謝謝你，祝你有個愉快的夜晚。

Thank you for participating in today's Cadence Third Quarter 2022 Earnings Conference Call. This concludes today's call. You may now disconnect.

感謝您參加今天的 Cadence 2022 年第三季度收益電話會議。今天的電話會議到此結束。您現在可以斷開連接。