益華電腦 (CDNS) 2024 Q2 法說會逐字稿

Good afternoon. My name is Brianna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cadence second quarter 2024 earnings conference call. (Operator Instructions) I will now turn the call over to Richard Gu, Vice President of Investor Relations for Cadence. Please go ahead.

午安.我叫布麗安娜，今天我將擔任你們的會議操作員。此時，我歡迎大家參加Cadence 2024年第二季財報電話會議。 （操作員指示）我現在將電話轉給 Cadence 投資者關係副總裁 Richard Gu。請繼續。

Thank you, operator. I would like to welcome everyone to our second quarter of 2024 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，接線生。歡迎大家參加我們的 2024 年第二季財報電話會議。今天與我一起出席會議的還有總裁兼執行長 Anirudh Devgan 和資深副總裁兼財務長 John Wall。本次電話會議的網路直播和今天準備好的演講副本將在我們的網站 cadence.com 上提供。

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, CFO commentary, and today's earnings release.

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績效的展望。由於風險和不確定性，實際結果可能與今天討論中預測或暗示的結果有重大差異。有關可能導致實際結果不同的因素的信息，請參閱我們向 SEC 提交的文件，包括我們最新的 10-K 和 10-Q 表格、首席財務官評論以及今天的收益發布。

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. In addition, we 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.

本次電話會議期間的所有前瞻性陳述均基於我們今天掌握的估計和信息，我們不承擔更新這些陳述的義務。此外，我們提出了某些非 GAAP 衡量標準，不應將這些衡量標準與 GAAP 結果分開考慮或取代 GAAP 結果。今天的收益報告中包含了 GAAP 與非 GAAP 指標的調整。

(Event Instructions) Now I'll turn the call over to Anirudh.

（活動說明）現在我將把電話轉給 Anirudh。

Thank you, Richard. Good afternoon, everyone, and thank you for joining us today. Cadence delivered strong financial results for the second quarter of 2024, with broad-based momentum across our product portfolio. Bookings were stronger than expected, leading to a healthy backlog and underscoring the robust demand for our innovative technologies. We exceeded our outlook on all key metrics and are updating our revenue guidance for the year to over 13% year-over-year growth. John will provide more details on both our Q2 results and updated outlook for the year.

謝謝你，理查。大家下午好，感謝您今天加入我們。 Cadence 在 2024 年第二季實現了強勁的財務業績，我們的產品組合呈現出廣泛的勢頭。預訂量強於預期，導致訂單積壓良好，並凸顯了對我們創新技術的強勁需求。我們所有關鍵指標都超出了預期，並將今年的營收指引更新為年增 13% 以上。約翰將提供有關我們第二季度業績和今年更新展望的更多詳細資訊。

Generational trends such as hyperscale computing, 5G, and autonomous driving, all underpinned by the AI supercycle, are driving strong design activity across multiple verticals, particularly in datacenter and automotive. Along with increasing chip complexity and system companies building their own silicon, these trends are creating tremendous tailwinds for our differentiated solutions.

超大規模運算、5G 和自動駕駛等世代趨勢均以人工智慧超級週期為基礎，正在推動多個垂直領域的強勁設計活動，特別是在資料中心和汽車領域。隨著晶片複雜性的增加和系統公司建立自己的晶片，這些趨勢為我們的差異化解決方案創造了巨大的推動力。

We are steadfastly executing to our Intelligent System Design strategy, extending our leadership in core EDA, while steadily expanding our footprint in the new system design and analysis area.

我們堅定不移地執行我們的智慧系統設計策略，擴大我們在核心 EDA 領域的領先地位，同時穩步擴大我們在新系統設計和分析領域的足跡。

Customers are ramping up their R&D spend in a AI-driven automation. Our Cadence.AI portfolio offering unparalleled quality of results and productivity benefits continues to gain momentum with orders more than tripling over the last year. Our solutions are enabling the massive air infrastructure build-out across the semi and systems space. Additionally, we continue embedding AI in our EDA, SDA, and digital biology solutions.

客戶正在增加人工智慧驅動自動化的研發支出。我們的 Cadence.AI 產品組合提供無與倫比的結果品質和生產力優勢，繼續保持強勁勢頭，訂單量比去年增加了兩倍多。我們的解決方案正在支援跨半和系統領域的大規模航空基礎設施建設。此外，我們繼續將人工智慧嵌入到我們的 EDA、SDA 和數位生物解決方案中。

In Q2, our long-term development partner, NVIDIA, broadly deployed Palladium Z3 to deliver to its next-generation AI product roadmap, further solidifying Cadence's leadership in the industry. A marquee hyperscaler meaningfully expanded its partnership with Cadence in Q2 through a broad proliferation of our Cadence.AI EDA, SDA, and hardware portfolio.

第二季度，我們的長期開發合作夥伴 NVIDIA 廣泛部署了 Palladium Z3，以實現其下一代 AI 產品路線圖，進一步鞏固了 Cadence 在該行業中的領導地位。一家大型超大規模企業在第二季度透過廣泛擴展我們的 Cadence.AI EDA、SDA 和硬體產品組合，有意義地擴大了與 Cadence 的合作夥伴關係。

The growing foundry ecosystem is driving increased design activity and creating significant opportunities for our industry leading products. And in Q2, we expanded our collaboration with several leading foundry partners.

不斷發展的鑄造生態系統正在推動設計活動的增加，並為我們領先業界的產品創造重要機會。在第二季度，我們擴大了與幾個領先代工合作夥伴的合作。

We announced that Cadence.AI digital and analog tools for optimized for Samsung's advanced node SF2 gate-all-around process, driving enhanced quality of results and accelerating node migration. We extended our long-standing collaboration with TSMC through a very comprehensive and innovative technology advancement, ranging from 3D-IC to design IP and photonics, and providing optimized digital and analog full flows for TSMC's latest N2 process technologies.

我們宣布 Cadence.AI 數位和類比工具針對三星先進節點 SF2 全柵製程進行了最佳化，從而提高了結果品質並加速了節點遷移。我們透過非常全面和創新的技術進步擴展了與台積電的長期合作，範圍從 3D-IC 到設計 IP 和光子學，並為台積電最新的 N2 製程技術提供最佳化的數位和類比全流程。

Our integrity 3D-IC platinum is the industry's leading unified design, analysis, and signoff platform for multi-chiplet architectures. Integrity has been certified for all of TSMC's latest 3DFabric offerings and now has enabled several new features like hierarchical 3D-IC design. We also announced that Integrity has been enabled for all of Samsung Foundry's multi-die integration offerings, accelerating the design and assembly of stacked chiplets.

我們的完整性 3D-IC 白金版是業界領先的多晶片架構統一設計、分析和簽核平台。 Integrity 已獲得台積電所有最新 3DFabric 產品的認證，現已啟用分層 3D-IC 設計等多項新功能。我們也宣布，三星代工廠的所有多晶片整合產品均已啟用 Integrity，從而加速堆疊小晶片的設計和組裝。

Additionally, we released the complete Intel Foundry EMIB advanced packaging reference flow, that is optimized to work seamlessly with Intel 18A technology. We are also collaborating with multiple foundries to optimize our industry-leading IP cores for AI, HPC, mobile and automotive applications for the advanced process technologies, so as to ensure seamless integration into customer designs.

此外，我們還發布了完整的英特爾代工 EMIB 高級封裝參考流程，該流程經過優化，可與英特爾 18A 技術無縫協作。我們也與多家代工廠合作，針對先進製程技術優化我們業界領先的人工智慧、高效能運算、行動和汽車應用IP核，以確保無縫整合到客戶設計中。

We saw strong momentum in our IP business, with it delivering 25% year-over-year growth in Q2, as we executed to our profitable and scalable growth strategy. AI use cases, HPC, and heterogeneous integration were the primary drivers fueling the demand for our HBM, PCIe, GDDR, 112G SerDes, and UCle products.

隨著我們執行獲利和可擴展的成長策略，我們的 IP 業務呈現強勁勢頭，第二季度年增 25%。 AI 使用案例、HPC 和異質整合是推動我們的 HBM、PCIe、GDDR、112G SerDes 和 UCle 產品需求的主要驅動力。

We expanded our system IP portfolio with the addition of Cadence Janus Network-on-a-Chip solution that manages high-speed communications effectively with minimum latency, enabling customers to achieve their PPA targets faster and with lower risk.

我們透過添加 Cadence Janus 片上網路解決方案擴展了我們的系統 IP 產品組合，該解決方案能夠以最小的延遲有效管理高速通信，使客戶能夠更快地實現其 PPA 目標並降低風險。

Emulation and Prototyping have become mission critical elements of chip design and software bring-up flows. Following the launch of our market-leading Z3 and X3 platforms, there is robust demand for these best-in-class systems, particularly by AI, hyperscale, and automotive companies. And we continue to ramp up our production capacity accordingly.

模擬和原型設計已成為晶片設計和軟體啟動流程的關鍵任務要素。隨著我們市場領先的 Z3 和 X3 平台的推出，對這些一流系統的需求強勁，尤其是人工智慧、超大規模和汽車公司。我們將繼續相應地提高我們的產能。

Verisium, our AI-driven verification platform, continued seeing rapid customer adoption with several market-shaping customers, including Qualcomm successfully using Verisium SimAI for coverage maximization and achieving up to a 20x reduction in verification workload time.

我們的 AI 驅動驗證平台 Verisium 繼續得到多個市場塑造客戶的快速採用，其中包括 Qualcomm 成功使用 Verisium SimAI 實現覆蓋範圍最大化，並將驗證工作負載時間縮短了 20 倍。

Our system design and analysis business continued its strong momentum in Q2, delivering 20% year-over-year revenue growth.

我們的系統設計和分析業務在第二季度持續保持強勁勢頭，營收年增 20%。

As chiplet-based architectures gain traction, our industry-leading Integrity 3D-IC platform had increased adoption and expansion from large deployments at 5G, hyperscale, memory, and consumer customers. Our AI-enabled Allegro X design platform is being rapidly adopted and driving competitive displacement, as multiple aerospace and defense hyperscalers and EV customers take advantage of the platform's productivity and next-generation capabilities.

隨著基於小晶片的架構越來越受歡迎，我們領先業界的 Integrity 3D-IC 平台在 5G、超大規模、記憶體和消費者客戶的大規模部署中得到了更多的採用和擴展。隨著多個航空航太和國防超大規模企業和電動車客戶充分利用該平台的生產力和下一代功能，我們支援人工智慧的 Allegro X 設計平台正在迅速被採用，並推動競爭替代。

Allegro X's in-design and analysis capabilities are also driving a pull through of our multiphysics analysis solutions. In Q2, a leading EV auto company forged a strategic partnership with Cadence, making a significant investment across the breadth of our multiphysics portfolio.

Allegro X 的設計內和分析功能也推動了我們多物理場分析解決方案的發展。第二季度，一家領先的電動車公司與 Cadence 建立了戰略合作夥伴關係，對我們的多物理場產品組合進行了重大投資。

With the close of Beta CAE in Q2, we now offer a comprehensive multiphysics platform covering electromagnetics, electrothermal, CFD, and structural analysis solutions.

隨著第二季 Beta CAE 的結束，我們現在提供涵蓋電磁、電熱、CFD 和結構分析解決方案的綜合多物理場平台。

Our digital IC and custom businesses delivered another solid quarter. Proliferation of our digital full flow at the most advanced nodes continued, with close to 40 full flow wins over the last 12 months, especially at hyperscalers. With over 400 tapeouts, customers are increasingly relying on Cadence Cerebrus, the leading AI tool in the industry, as it continues to deliver amazing PPA and productivity benefits.

我們的數位 IC 和客製化業務又實現了強勁的季度業績。我們在最先進節點上的數位全流程持續激增，在過去 12 個月內贏得了近 40 個全流程，尤其是在超大規模企業。憑藉 400 多個串流片，客戶越來越依賴業界領先的 AI 工具 Cadence Cerebrus，因為它繼續提供驚人的 PPA 和生產力優勢。

For example, Cadence Cerebrus has been delivering up to a 10% PPA gain for a global marquee systems company and is now deployed as part of the default flow for their latest designs at the most advanced nodes. Samsung Foundry leveraged Cadence Cerebrus in both DTCO and implementation to achieve more than a 10% leakage power reduction on their SF2 Gate-All-Around platform.

例如，Cadence Cerebrus 一直為一家全球大型系統公司提供高達 10% 的 PPA 增益，現在已作為其最新設計在最先進節點的預設流程的一部分進行部署。 Samsung Foundry 在 DTCO 和實作中利用 Cadence Cerebrus，在其 SF2 Gate-All-Around 平台上實現了超過 10% 的洩漏功率降低。

Socionext utilized Certus Closure and Tempus Signoff to reduce timing closure time by 73% and doubled productivity while reducing memory cost by 90%.

Socionext 利用 Certus Closure 和 Tempus Signoff 將時序收斂時間縮短了 73%，使生產率提高了一倍，同時將記憶體成本降低了 90%。

Our AI-driven Virtuoso Studio is the leading automated solution for analog and RF designs. And it's new AI features allow much more efficient migration from one process node to another. Virtuoso Studio added 35 new logos in Q2, led by top hyperscalers, aerospace and defense and automotive customers.

我們的人工智慧驅動的 Virtuoso Studio 是領先的類比和射頻設計自動化解決方案。它的新人工智慧功能允許更有效地從一個流程節點遷移到另一個流程節點。 Virtuoso Studio 在第二季增加了 35 個新徽標，其中主要是頂級超大規模企業、航空航太、國防和汽車客戶。

In summary, I'm pleased with our Q2 results and the continuing momentum of our business. The AI-driven automation era offers massive opportunities and the co-optimization of our comprehensive EDA and SDA portfolio with accelerated computing and AI orchestration, uniquely positions us to provide disruptive solutions to multiple markets.

總之，我對我們第二季的業績和業務的持續成長勢頭感到滿意。人工智慧驅動的自動化時代提供了巨大的機遇，我們全面的 EDA 和 SDA 產品組合與加速運算和人工智慧編排的共同優化，使我們處於獨特的地位，能夠為多個市場提供顛覆性解決方案。

Now I will turn it over to John to provide more details on the Q2 results and our updated 2024 outlook.

現在我將把它交給 John，以提供有關第二季度業績和我們更新的 2024 年展望的更多詳細資訊。

Thanks, Anirudh, and good afternoon, everyone. I'm pleased to report that Cadence delivered strong results for the second quarter of 2024, finishing the first half with backlog of approximately $6 billion. Also, we expanded our multiphysics platform in Q2 by completing the acquisition of BETA CAE. Here are some of the financial highlights from the second quarter, starting with P&L.

謝謝阿尼魯德，大家午安。我很高興地報告，Cadence 在 2024 年第二季取得了強勁的業績，上半年完成時積壓了約 60 億美元。此外，我們在第二季完成了對 BETA CAE 的收購，擴展了我們的多物理場平台。以下是第二季的一些財務亮點，從損益表開始。

Total revenue was $1.061 billion. GAAP operating margin was 27.7% and non-GAAP operating margin was 40.1%, and GAAP EPS was $0.84, with non-GAAP EPS $1.28. Next turning to the balance sheet and cash flow.

總收入為 10.61 億美元。 GAAP 營業利潤率為 27.7%，非 GAAP 營業利潤率為 40.1%，GAAP 每股收益為 0.84 美元，非 GAAP 每股收益為 1.28 美元。接下來轉向資產負債表和現金流。

Cash balance at quarter end was $1.059 billion for the principal value of debt outstanding was $1.350 billion. Operating cash flow was $156 million. DSOs were 49 days and we used $125 million to repurchase Cadence shares in Q2.

季末現金餘額為 10.59 億美元，未償債務本金為 13.50 億美元。營運現金流為 1.56 億美元。 DSO 為期 49 天，我們在第二季使用了 1.25 億美元回購了 Cadence 股票。

Before I provide our updated outlook, I'd like to share some assumptions that are embedded. Our updated outlook includes BETA CAE, and it contains the usual assumption that export control regulations that exist today remains substantially similar for the remainder of year.

在提供最新的展望之前，我想先分享一些內在的假設。我們更新的展望包括 BETA CAE，並且包含通常的假設，即目前存在的出口管制法規在今年剩餘時間內保持基本相似。

Our updated outlook for 2024 is revenue in the range of $4.60 billion to $4.66 billion; GAAP operating margin in the range of 29.7% to 31.3%; non-GAAP operating margin in the range of 41.7% to 43.3%; GAAP EPS in the range of $3.82 to $4.02; non-GAAP EPS in the range of $5.77 to $5.97; operating cash flow in the range of $1.0 billion to $1.2 billion, and we expect to use approximately 50% of our annual free cash flow to repurchase Cadence shares.

我們對 2024 年的最新展望是營收在 46 億美元至 46.6 億美元之間； GAAP營業利益率介於29.7%至31.3%之間；非公認會計準則營業利益率介於 41.7% 至 43.3% 之間； GAAP 每股收益在 3.82 美元至 4.02 美元之間；非 GAAP 每股盈餘在 5.77 美元至 5.97 美元之間；營運現金流在 10 億至 12 億美元之間，我們預計將使用年度自由現金流的約 50% 來回購 Cadence 股票。

With that in mind, for Q3, we expect revenue in the range of $1.165 billion to $1.195 billion; GAAP operating margin in the range of 27.7% to 29.3%; non-GAAP operating margin in the range of 40.7% to 42.3%, GAAP EPS in the range of $0.83 to $0.93, and non-GAAP EPS in the range of $1.39 to $1.49.

考慮到這一點，我們預計第三季的營收將在 11.65 億美元至 11.95 億美元之間； GAAP營業利益率介於27.7%至29.3%之間；非 GAAP 營業利潤率為 40.7% 至 42.3%，GAAP 每股收益為 0.83 美元至 0.93 美元，非 GAAP 每股收益為 1.39 美元至 1.49 美元。

And as usual, we published the CFO commentary document on our Investor Relations website, which includes our outlook for additional items as well as further analysis and GAAP to non-GAAP reconciliations.

與往常一樣，我們在投資者關係網站上發布了首席財務官評論文件，其中包括我們對其他項目的展望以及進一步分析以及 GAAP 與非 GAAP 調節。

In conclusion, I'm pleased with our strong Q2 results. We exceeded our outlook on all key financial metrics, a good finish to the first half and ongoing demand for our solutions sets us up for strong growth in the second half of 2024. As always, I'd like to close by thanking our customers, partners, and our employees for their continued support.

總之，我對我們第二季的強勁業績感到滿意。我們在所有關鍵財務指標上都超出了預期，上半年的良好收官以及對我們解決方案的持續需求為我們在2024 年下半年實現強勁增長奠定了基礎。我們的客戶，感謝合作夥伴以及我們的員工的持續支持。

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

接線員，我們現在開始提問。

(Operator Instructions) Charles Shi, Needham & Company.

（操作員指令）Charles Shi，Needham & Company。

Hi, good afternoon. Thanks for taking my questions. Anirudh and John, maybe the first question, I do want to ask a fairly big question -- a big picture one. So you did pick up your outlook for the year. But some of that really comes from BETA CAE. But the broader question is the semiconductor -- global conductor sales, it's on track to grow a lot faster, let's say, compared with you and given your peer synopsis.

嗨，下午好。感謝您回答我的問題。阿尼魯德和約翰，也許是第一個問題，我確實想問一個相當大的問題——一個大局問題。所以你確實確定了今年的展望。但其中一些確實來自 BETA CAE。但更廣泛的問題是半導體——全球導體銷售，比方說，與您相比並考慮到您的同行概要，它的增長速度將會更快。

But this seems to me kind of like a reversal of a trend of the last three years when you actually did outgrow the semi conductors. But with so much AI being a big driver for semiconductors, we do wonder whether it's either through pricing or through some other measures Cadence can actually gain a little bit bigger piece of the pie for overall semiconductor, especially from AI. s

但在我看來，這有點像是過去三年趨勢的逆轉，當時半導體的發展確實已經超出了半導體的發展速度。但由於人工智慧成為半導體的一大推動力，我們確實想知道，無論是透過定價還是透過其他一些措施，Cadence 是否實際上可以在整個半導體領域獲得更大的份額，尤其是透過人工智慧。 s

I don't know if you can provide some thoughts today. I am not necessarily asking how to change that trend in terms of the value capture, but any thoughts would be great. Thanks.

不知道今天能否提供一些想法。我不一定要問如何改變價值捕獲方面的趨勢，但任何想法都很棒。謝謝。

Yeah. Hi, Charles. Thanks for the question. I mean, first of all, I'd like to say that overall, we are pleased with how we're performing in. If you step back -- because you asked a longer-term question, right? If you step back, we will deliver -- we expect more than 13% revenue growth and about 42.5% operating margin. So I think that's a best-in-class combination of both revenue growth and operating margin.

是的。嗨，查爾斯。謝謝你的提問。我的意思是，首先，我想說的是，總的來說，我們對我們的表現感到滿意。如果你退後一步，我們將實現——我們預計收入成長超過 13%，營業利潤率約為 42.5%。因此，我認為這是收入成長和營業利潤率的最佳組合。

And then if you look at our CAGR over last three years, which is one of our favorite metrics, that's also performing pretty well in terms of growth and margin expansion. And you mentioned semi-cycle. It is encouraging to see that there is going to be growth this year, which -- it was not there last year.

然後，如果你看看我們過去三年的複合年增長率（這是我們最喜歡的指標之一），它在成長和利潤率擴張方面也表現得相當不錯。你提到了半循環。令人鼓舞的是，今年將出現成長，而去年則沒有。

But as you will know, Charles, we are tied to the R&D spend more than the revenue of our customers. And of course, if the revenue goes up, they're more likely to spend on R&D. But in general, our customers, both system and semi companies, continue to spend on R&D, and these are long-term projects.

但查爾斯，你會知道，我們與研發支出的關係比與客戶收入的關係更大。當然，如果收入增加，他們更有可能在研發上投入資金。但總的來說，我們的客戶，無論是系統公司還是半導體公司，都會繼續在研發上投入資金，而這些都是長期專案。

So we'll see how that goes as the semiconductor revenue improves. But this is not instantaneous effect on R&D spend. There's always some lag sometimes. And so we really -- but we are encouraged to see the improvement in semi spending overall in the semiconductor revenue.

因此，隨著半導體收入的改善，我們將看看情況如何。但這並不是對研發支出的立竿見影的影響。有時候總是有一些延遲。因此，我們確實 - 但我們很高興看到半導體收入中半支出整體的改善。

So I would like to say, and we can see in our backlog also, we maintain a pretty healthy backlog. So overall, I think things are performing well, and this AI is broadening out. You know this well; AI is broadening our beyond data center, which we are glad to have great partnerships to automotive, to more edge consumer devices like smartphones and PCs . So overall, I feel pretty good about the industry and of course, our position in it as the essential provider of design software.

所以我想說，我們也可以在我們的積壓中看到，我們保持著相當健康的積壓。總的來說，我認為一切都表現良好，而且人工智慧正在不斷擴展。你很清楚這一點；人工智慧正在擴大我們的資料中心範圍，我們很高興能與汽車、智慧型手機和個人電腦等更邊緣的消費設備建立良好的合作夥伴關係。總的來說，我對這個行業感覺很好，當然，我們作為設計軟體的重要提供者在其中的地位也很好。

Got it. Maybe a quick follow-up on China. Looks like a China revenue is still pretty light in the second quarter. So I recall you were thinking maybe China contributions are probably going to be slightly less than the mid teens or 15% -- less than 15%. But even if -- let me assume the China revenue gets to like a 14%-ish, it still implies a little bit of a second half reacceleration of China revenue growth. Is that still the case, or you think maybe compare with the three months ago, China actually make get a little bit weaker as you previously thought? Thanks

知道了。也許是對中國的快速跟進。看起來第二季中國的收入仍然相當少。所以我記得你當時在想，中國的貢獻可能會略低於十幾歲或 15%——低於 15%。但即使——讓我假設中國收入成長 14% 左右，這仍然意味著下半年中國收入成長將有所加速。情況仍然如此嗎，或者你認為也許與三個月前相比，中國實際上像你之前想像的那樣變得更弱了一些？謝謝

Thanks for the question, Charles. And that's -- regional revenue is notoriously hard to predict. I will say that at the midpoint of our current revenue guide, we only need China to get to 13% of overall revenue to be able to hit that midpoint. I mean when you look at performance in Q2 in the first half, we had a very strong bookings first half, very pleased with customers' response to our new hardware systems.

謝謝你的提問，查爾斯。眾所周知，地區收入很難預測。我想說的是，按照我們目前收入指南的中點，我們只需要中國達到總收入的 13% 就能夠達到該中點。我的意思是，當您查看上半年第二季度的表現時，我們上半年的預訂量非常強勁，對客戶對我們新硬體系統的反應非常滿意。

The IP and SD&A businesses continue to grow strongly. Core businesses continue to scale really well. And we're focused on profitable revenue growth. I know it's in your first question. You indicated that we hadn't raised the outlook, but we did raise non-GAAP EPS by $0.06. We're very pleased with the improvement in profitability.

IP 和 SD&A 業務持續強勁成長。核心業務持續保持良好規模。我們專注於獲利性收入成長。我知道這是你的第一個問題。您表示我們沒有提高預期，但我們確實將非 GAAP 每股盈餘提高了 0.06 美元。我們對獲利能力的改善感到非常滿意。

And when you look at the current guide, we're actually on track for 50% incremental margin, excluding the impact BETA CAE now. BETA CAE is in our guide, but it's in our guide at what we've previously communicated in the press release -- it's $40 million of revenue and about $0.12 dilution to non-GAAP EPS. There is an impact to [op cash] as a result of BETA CAE as well.

當您查看當前指南時，我們實際上預計將實現 50% 的增量利潤，不包括現在 BETA CAE 的影響。 BETA CAE 在我們的指南中，但它在我們之前在新聞稿中傳達的內容中——它是 4000 萬美元的收入，對非 GAAP 每股收益的稀釋約為 0.12 美元。 BETA CAE 也會對 [op cash] 產生影響。

But overall, very, very pleased. We thought it was prudent to assume lower China revenue for this year at the midpoint of our guide but that's it. We only 13% to get to the midpoint of guidance.

但總的來說，非常非常滿意。我們認為，謹慎的做法是假設今年中國收入較低，處於我們指南的中間位置，但僅此而已。我們只有 13% 達到指導的中點。

Gianmarco Conti, Deutsche Bank.

吉安馬科·孔蒂，德意志銀行。

Yeah, hi there. Thank you so much for taking my questions. So on my first one, could you talk a little bit about the implied Q4 ramp up to 29% growth at the midpoint of guidance? And what is giving you the confidence in reaching that target? Is it mostly harder visibility coming through or are there an unusually high number of Q4 renewals that you're waiting for? Any color here would be great. Thank you.

是的，你好。非常感謝您回答我的問題。那麼，在我的第一個問題上，您能談談第四季度隱含的成長率在指導中點達到 29% 的情況嗎？是什麼讓您有信心實現該目標？是否主要是可見度比較困難，或者您正在等待的第四季度續訂數量是否異常高？這裡任何顏色都會很棒。謝謝。

Yes, Gianmarco. There's no real change from what we said last quarter. I mean, it's effectively the shape of the revenue curve for the year. We're expecting upfront revenue -- more upfront revenue in the second half. It is just the timing of shipments really that -- upfront revenue typically comes from IP hardware and to a lesser extent, some software on the SG&A side.

是的，吉安馬科。與我們上季度所說的沒有真正的變化。我的意思是，它實際上是今年收入曲線的形狀。我們預計下半年會有更多的預付費用收入。這只是發貨時間的問題——前期收入通常來自 IP 硬件，其次是 SG&A 方面的一些軟體。

With the hardware, it takes time to build the systems. We have higher revenue in Q4 versus Q3 as a result but also from IP. There's -- IP is -- we recognize revenue on IP based on the timing of deliveries. We're confident in that guide. It's shows the -- the shape of Q3 and Q4 is what we have in the guide now.

有了硬件，建置系統需要時間。因此，我們第四季的營收高於第三季度，而且來自智慧財產權的收入也更高。 IP 是－我們根據交付時間確認 IP 收入。我們對該指南充滿信心。它顯示了 - Q3 和 Q4 的形狀就是我們現在在指南中所看到的。

Okay, great. So my follow-up would be on Honda. If you could talk a little bit about how much visibility you have actually in H2. Are you booking and delivering in the same quarter, hence why we're not seeing major uplift in backlog growth? Or is there a different amount to it? I'm trying to understand if you're booking, manufacturing, and delivering, all in the same quarter for hardware essentially. Thank you.

好的，太好了。所以我的後續行動將是本田。您能談談您在 H2 中實際擁有多少可見度嗎？您是否在同一季度進行預訂和交付，因此為什麼我們沒有看到積壓訂單增長大幅提升？或有不同的金額嗎？我試圖了解你們的硬體預訂、製造和交付是否都在同一季度進行。謝謝。

Thanks for the question. Yes, in some cases. On the newer systems, there is a timeline, a lead time to building the systems. We have more bookings than our ability to actually fulfill those bookings, but we do have some inventory of the older systems, where we deliver those in the quarter. So there's always a mix.

謝謝你的提問。是的，在某些情況下。在較新的系統上，有一個時間表，即建置系統的準備時間。我們的預訂量超出了我們實際完成這些預訂的能力，但我們確實有一些舊系統的庫存，我們將在本季度交付這些庫存。所以總是有混合的。

We did have a challenge in the past with getting inventory and building the inventory as fast as we could for the amount. And I think we've dealt with a lot of us. You'll also see in the op cash guide, we're planning to purchase a significant amount of raw materials for building inventory in Q3. That's the biggest portion of the change in op cash guide.

過去我們確實面臨著一個挑戰，那就是盡可能快地取得庫存並建立庫存。我想我們已經和很多人打過交道了。您還會在營運現金指南中看到，我們計劃在第三季購買大量原料以建立庫存。這是營運現金指南變化的最大部分。

Also just added on our overall -- Hey, just to add on the overall hardware cycle, as you remember, we launched new systems in April, just a couple of months ago -- a few months ago now. And the response to them has been phenomenal. Actually, we -- these palladium, especially both palladium and protium -- but these systems can design chips, like I mentioned last time, with capacity of 1 trillion transistors. And the current biggest chip is like 200 billion transistor's. Most of them are in 100 billion or less.

還剛剛添加了我們的整體 - 嘿，只是添加了整個硬體週期，如你所知，我們在四月份推出了新系統，就在幾個月前 - 幾個月前。他們的反應是驚人的。實際上，我們——這些鈀，特別是鈀和氕——但這些系統可以設計晶片，就像我上次提到的，容量為 1 兆個電晶體。而目前最大的晶片相當於2000億個電晶體。大部分都在1000億以下。

So we are 5x to 10x higher capacity than what is needed. So that should suit the industry well for next several years. And I'm also -- what we're pretty pleased about is that we delivered production deployments of our system -- new systems to some very major customers. So we highlighted in NVIDIA, a development partner, this significant deployment of Z3; also one of the lead in mobile system -- mobile companies in the world and one of the leading hyperscalers.

因此，我們的容量比所需容量高 5 到 10 倍。因此，這應該很適合未來幾年的行業。我還感到非常高興的是，我們向一些非常重要的客戶交付了系統的生產部署——新系統。因此，我們向開發合作夥伴 NVIDIA 強調了 Z3 的這項重大部署；也是行動系統領域的領導者之一——全球行動公司和領先的超大規模企業之一。

So it's across multiple markets that we delivered our latest systems, which are performing exceedingly well. So that sets up very well for the future and also competitively. And we have a significant lead given the nature of our systems. It's a combination of -- protium is based on FPGA and then palladium is based on our own chip at advanced TSMC process. And Cadence is the only solution that does that and provides a unique value.

因此，我們在多個市場交付了性能非常出色的最新系統。因此，這為未來和競爭奠定了良好的基礎。鑑於我們系統的性質，我們擁有顯著的領先優勢。它是基於 FPGA 的 Protium 和基於先進台積電製程的我們自己的晶片的 Palladium 的組合。 Cadence 是唯一能夠做到這一點並提供獨特價值的解決方案。

So overall, I think hardware business is performing well. And as you know, these are multi-year upgrade cycles. So this is not all in '24. So we'll see how things go in '25 and '26 here.

所以總的來說，我認為硬體業務表現良好。如您所知，這些是多年的升級週期。所以這並不是 24 年的全部。所以我們將在這裡看看 25 和 26 年的情況如何。

Vivek Arya, Bank of America Securities.

Vivek Arya，美國銀行證券公司。

Thanks for taking my questions. So on an absolute basis in fiscal '24, organic sales growth rate as robust, but in terms of revisions, it has stalled, right? Essentially no real movement since what you suggested at the start of the year. So I'm curious, Anirudh, how has the year transpired versus what you thought?

感謝您回答我的問題。因此，在 24 財年的絕對基礎上，有機銷售成長率同樣強勁，但就修正而言，它已經停滯了，對嗎？自從您年初提出建議以來，基本上沒有任何實際行動。所以我很好奇，阿尼魯德，這一年的情況與你的想法有何不同？

And how do you think about bookings and backlog trends into the second half? Should we expect that backlog stays around the $6 billion. Will it start to pick up? Just I'm trying to understand that should we be thinking about sales accelerating from here or this being kind of the sustainable growth rate for the company?

您如何看待下半年的預訂和積壓趨勢？我們是否應該預期積壓金額將維持在 60 億美元左右？會開始回升嗎？只是我想了解的是，我們是否應該考慮從這裡開始加速銷售，或者這是公司的可持續成長率？

Yeah. Hi, Vivek, good question. So in general, what I would like to say is, like we mentioned last two times, the shape of the curve this year is unique to Cadence, given multiple factors. This is not what we expected last two years. So this time is more back-end loaded for the reasons we mentioned before. So the guide is a little different.

是的。嗨，維韋克，好問題。所以總的來說，我想說的是，就像我們前兩次提到的那樣，考慮到多種因素，今年的曲線形狀是Cadence獨有的。這不是我們過去兩年所期望的。因此，由於我們之前提到的原因，這次更多的是後端載入。所以指南有點不同。

And we are also, given that shape of the curve, more prudent in our guide like we were in Q2. And then we rather overachieve and deliver that and give the team flexibility to do the right business for the long term. So I think that's the different this year versus last few years is given the shape of the curve, we have more prudent in our revenue guide, like John mentioned. And John can comment on the backlog expectations.

考慮到曲線的形狀，我們在指南中也像第二季一樣更加謹慎。然後我們寧願超額完成並實現這一目標，並為團隊提供靈活性，以便長期開展正確的業務。因此，我認為今年與過去幾年的不同之處在於曲線的形狀，我們的收入指南更加謹慎，就像約翰提到的那樣。約翰可以評論積壓的預期。

Yeah. We don't guide book things, but we were very pleased with the strong bookings in the first half. And I get the question, Vivek. Essentially, we're seeing strong demand for our hardware systems. We're seeing strength across all our businesses. And I guess your question is that when you add in BETA CAE, you're not really taken the revenue guide up.

是的。我們不指導預訂，但我們對上半年的強勁預訂感到非常滿意。我明白了這個問題，維維克。本質上，我們看到對我們的硬體系統的強勁需求。我們在所有業務中都看到了實力。我想您的問題是，當您添加 BETA CAE 時，您並沒有真正了解收入指南。

I think, essentially, if your question is what would we like to see improve? I think it's the China revenue percentage. It was 12% in Q1, 12% in Q2. It improved in Q2 over Q1, and we think it will continue to improve through the year. But right now, our guide only need to get to 13% China to hit the midpoint of that guidance.

我認為，本質上，如果您的問題是我們希望看到哪些改進？我認為這是中國的收入百分比。第一季為 12%，第二季為 12%。第二季的情況比第一季有所改善，我們認為這種情況將在全年繼續改善。但目前，我們的指南只需要達到中國的 13% 即可達到該指南的中點。

And for my follow-up, you mentioned BETA CAE quite a drag to EPS. I think you mentioned $0.12 dilution and almost I think what is like a $300 million hit to operating cash flows. Can you describe that acquisition a little more? And when does it start to become accretive to your financials? Thank you.

在我的後續行動中，您提到 BETA CAE 對 EPS 造成相當大的拖累。我想你提到了 0.12 美元的稀釋，我幾乎認為營運現金流會受到 3 億美元的打擊。您能詳細描述一下這次收購嗎？它什麼時候開始增加你的財務狀況？謝謝。

So yes, Vivek. On the $300 million drop in operating cash, just to clarify that, about 40% of that $300 million drop is due to M&A. I mean, in things like BETA CAE, some of the purchase price, the geography of where the operating cash -- or where the cash impact goes, some of that payment flows through op cash.

所以是的，維維克。關於營運現金減少 3 億美元，需要澄清的是，這 3 億美元的減少中約 40% 是由於併購造成的。我的意思是，在諸如BETA CAE之類的事情中，一些購買價格、營運現金的地理位置——或者現金影響的去向，其中一些付款是透過營運現金流動的。

The bigger portion of the impact on operating cash is our plan to purchase a lot of inventory raw materials for the hardware demand that we're seeing. We're pre-purchasing a lot of inventory. So you'll see our inventory spike in Q3 with all of the raw materials we're purchasing. We want to make sure that we have all the raw materials necessary to ramp up the build-out of our hardware systems.

對營運現金影響最大的部分是我們計劃購買大量庫存原材料以滿足我們所看到的硬體需求。我們正在預先採購大量庫存。因此，您會看到我們購買的所有原材料在第三季度的庫存激增。我們希望確保擁有擴大硬體系統建置所需的所有原料。

And then in relation to BETA CAE, there's -- I mean, it's a very recent acquisition. It's no different to what we have in the press release. In fact, on the press release, we said we were expecting $40 million revenue at the midpoint. That's embedded now in the guide. We're expecting $0.12 dilution on non-GAAP EPS. That's also in the guide now.

關於 BETA CAE，我的意思是，這是最近收購的。這與我們在新聞稿中的內容沒有什麼不同。事實上，在新聞稿中，我們表示預計收入中點為 4,000 萬美元。現在已嵌入指南中。我們預計非 GAAP 每股盈餘稀釋為 0.12 美元。現在指南中也包含了這一點。

And we expect it to be -- operationally, it'll be accretive next year, but there were some interest costs associated with the [test], but we think it will be accretive next year.

我們預計，從操作上來說，明年將會增加，但[測試]會產生一些利息成本，但我們認為明年將會增加。

Also, a couple of things to clarify. So one thing, this purchase of inventory for the hardware systems, that will be used over multiple years. It's not just for '24. So I think it's a one-time investment that pays for several years, and that's a prudent decision to make together get the right kind of parts for the future.

另外，有幾件事需要澄清。因此，有一件事是，購買的硬體系統庫存將使用多年。這不僅僅是24歲的事。因此，我認為這是一項可以持續數年的一次性投資，這是一個謹慎的決定，需要共同為未來購買合適的零件。

And then on BETA, it completes our system analysis portfolio to add structural analysis. It also strengthens our position in automotive. Of course, you know data center is a big vertical with all the AI supercycle. But I think one of the other exciting verticals is automotive with all this electrification and also AI getting added in the self-driving car or driver assistance. So we see lot of design activity in automotive. Also, automotive is also moving through chiplets and 3D-IC.

然後在BETA上，它完成了我們的系統分析組合，並添加了結構分析。它也加強了我們在汽車領域的地位。當然，您知道資料中心是一個包含所有人工智慧超級週期的大型垂直領域。但我認為其他令人興奮的垂直領域之一是汽車，所有這些電氣化以及人工智慧都被添加到自動駕駛汽車或駕駛員輔助中。所以我們看到汽車領域有很多設計活動。此外，汽車產業也正在向小晶片和 3D-IC 發展。

So I think automotive has all the three tenants of our ISD strategy. It has silicon content that is increasing. And more and more system design, of course, is needed for the design of automotive, and AI for all the data and competition software. So for that reason, BETA CAE is -- completes our portfolio in automotive and positions us well in the future. And this is not just with the semiconductors company's doing automotive but also the system companies now. OEMs doing more and more chip design, doing more of our system solutions.

因此，我認為汽車產業擁有我們 ISD 策略的所有三個租戶。它的矽含量不斷增加。當然，汽車設計需要越來越多的系統設計，所有數據和競賽軟體都需要人工智慧。因此，BETA CAE 完善了我們在汽車領域的產品組合，並使我們在未來佔據有利地位。這不僅適用於汽車領域的半導體公司，現在的系統公司也是如此。 OEM廠商越來越多做晶片設計，做越來越多的我們的系統解決方案。

And I also want to highlight and congratulate McLaren. There was a big news this weekend. McLaren got one and two in Hungarian F1. And we have been working with them for the last few months and years, and it's good to see them do well as we deploy. So I think the automotive solution that we are driving is a combination of silicon system and then AI, and we are seeing the results of that through organic and inorganic expansion.

我還想強調並祝賀麥克拉倫。這個週末有一個大消息。麥克拉倫在匈牙利 F1 比賽中獲得第一名和第二名。在過去的幾個月和幾年裡，我們一直在與他們合作，很高興看到他們在我們的部署中表現出色。因此，我認為我們正在推動的汽車解決方案是矽系統和人工智慧的結合，我們正在透過有機和無機擴展看到其結果。

Joshua Tilton, Wolfe Research.

約書亞‧蒂爾頓，沃爾夫研究中心。

Great. The first one is just kind of more of a clarification. I know there's been a lot of questions around the mix in upfront versus recurring. I guess what I'm just trying to understand is -- and I could be wrong with my math here -- but it feels like the upfront component was still a little light in 2Q and now we're a little bit more second-half-weighted, more 4Q-weighted, because you need time to develop inventory. Am I thinking about that the right way?

偉大的。第一個只是更多的澄清。我知道圍繞前期與重複的混合存在著許多問題。我想我只是想理解的是 - 我的數學可能是錯誤的 - 但感覺前期的部分在第二季度仍然有點輕，現在我們在下半年有點多-加權，更多的是4Q加權，因為你需要時間來開發庫存。我的思考方式正確嗎？

That's fair, Josh. I would do the inverse on here in terms of bookings were stronger than we expected in Q2, and we got some uplift on recurring revenue -- took a bit of pressure off on the upfront side. And we are taking orders. We've got strong demand for the hardware, and we're building those hardware systems as quickly as we can, particularly, the newer hardware orders.

這很公平，喬許。我會在這裡做相反的事情，因為第二季度的預訂量比我們預期的要強，而且我們的經常性收入得到了一些提升——減輕了一些前期壓力。我們正在接受訂單。我們對硬體有強烈的需求，我們正在盡快建立這些硬體系統，特別是新的硬體訂單。

IP is doing really well, and system design and analysis is doing really well. And what we reflected in the guide is our expectation of how much that revenue will fall in in Q3 and Q4. We took the opportunity. We've really derisked the guide for the year by reducing our expectations for China. Upfront, we still expect to be in a range of 80% to 85%, but I think we might be slightly more recurring revenue as a result of the strong bookings in the first half.

IP做得非常好，系統設計和分析也做得非常好。我們在指南中反映的是我們對第三季和第四季營收將下降多少的預期。我們抓住了這個機會。透過降低對中國的期望，我們確實消除了今年指南的風險。前期，我們仍預計在 80% 至 85% 的範圍內，但我認為，由於上半年的預訂量強勁，我們的經常性收入可能會略有增加。

That is super clear. And then I guess, just my follow-up to that is -- it's another visibility question, but how much of what's baked into the guide from an upfront perspective do you feel like you have like good inventory level to meet that guidance? Or did the guidance that you put out today still require you to build and develop inventory between now and shipping those boxes?

那是超清楚的。然後我想，我的後續行動是——這是另一個可見性問題，但是從前期的角度來看，指南中包含了多少內容，您認為您有良好的庫存水平來滿足該指南？或者，您今天發布的指導是否仍然要求您從現在到運送這些盒子之間建立和開發庫存？

Yes, but it's -- we definitely need to build hardware, and you'll see the impact on our inventory in Q3 with the amount of raw materials we're purchasing. But as Anirudh says, here, that's a one-time thing that we're doing to trying to get raw materials and to build our systems as quickly as we can.

是的，但我們確實需要製造硬件，您將看到我們購買的原材料數量對第三季庫存的影響。但正如阿尼魯德所說，我們正在做的一次性事情是試圖盡快獲得原材料並建立我們的系統。

But the a lot of the upfront revenue in the second half comes from the strength in our IP business, and we have those orders in backlog and it's just the case of executing against those. We also have some SD&A or system design analysis upfront revenue that's scheduled to occur in Q3 and Q4. Again, most of that is from orders in the system. On the hardware side, it's kind of mid- to high-single-digits is what we were expecting the SVG Group to deliver to be able to hit the midpoint of that guidance.

但下半年的前期收入大多來自我們智慧財產權業務的實力，我們有這些訂單積壓，而這只是針對這些訂單執行的情況。我們還有一些 SD&A 或系統設計分析預付費用，預計在第三季和第四季實現。同樣，其中大部分來自系統中的訂單。在硬體方面，我們期望 SVG Group 能夠提供中高個位數的業績，以達到該指導的中點。

Super helpful. And then just a quick follow-up is, really awesome to see the recurring revenue growing sequentially this quarter. Is there any way you can maybe help us on what the expected recurring versus upfront mix is supposed to be in 3Q? And then I'll cede the floor.

超有幫助。然後快速跟進，看到本季經常性收入連續成長真是太棒了。您有什麼辦法可以幫助我們了解第三季的預期經常性與預付費用的組合嗎？然後我就讓出發言權。

Oh, I don't have that to hand, but let me come back to that. I'll see if I can dig it out here.

哦，我手邊沒有這個，但讓我回過頭來說一下。我看看能不能把這裡挖出來。

Ruben Roy, Stifel.

魯本·羅伊，斯蒂菲爾。

Yes. Thank you. John, just a very quick question and then, I guess a follow-up and then I'll ask a real question. But on the inventory purchases, am I right in assuming that that's mostly for the Z3, X3? Has anything changed in terms of when you're thinking about general availability of those hardware products?

是的。謝謝。約翰，只是一個非常簡短的問題，然後我想是一個後續問題，然後我會問一個真正的問題。但在庫存採購方面，我假設主要是 Z3、X3，對嗎？當您考慮這些硬體產品的普遍可用性時，有什麼變化嗎？

Yes. That's correct. But the vast majority of the purchases are to get raw materials to help build those new systems.

是的。這是正確的。但絕大多數採購都是為了取得原料來幫助建構這些新系統。

And then in terms of the type --

然後就類型而言——

See -- Yeah, just to clarify, also, we have two systems, right? So palladiums, we design ourselves. And we manufacture the chip in TSMC. And protium -- we also designed ourselves. But the silicon itself is primarily from AMD with Xilinx's FPGAs. So a lot of this purchase is for X3s and the FPGAs, and that should serve us for multiple years.

是的，只是為了澄清一下，我們還有兩個系統，對吧？所以鈀，我們自己設計。我們在台積電生產晶片。還有氕──我們也是自己設計的。但晶片本身主要來自 AMD 和 Xilinx 的 FPGA。因此，大部分採購都是用於 X3 和 FPGA，這應該可以為我們服務多年。

On Z3, like you said, we are already shipping them, and they're already deployed in production this quarter. So I think Z3 is slightly different than X3 in terms of the mix of the silicon content, just to clarify that.

在 Z3 上，正如您所說，我們已經發貨，並且本季度它們已經部署在生產中。所以我認為 Z3 在矽含量的混合方面與 X3 略有不同，只是為了澄清這一點。

Okay. I apologize, Anirudh. I thought they are going to sort of certain customers and not generally available. But thank you for that.

好的。我道歉，阿尼魯德。我以為他們會針對某些特定客戶，而不是普遍可用。但謝謝你。

And then the real question is just around, some of your top customers have been accelerating the rhythm of bringing their very complex chips to market. NVIDIA and AMD certainly have accelerated their roadmaps to sort of a one-year rhythm. Are you seeing any changes in sort of the way your business is impacted or affected by the acceleration of their product roadmaps yet?

然後真正的問題就出現了，您的一些頂級客戶一直在加快將非常複雜的晶片推向市場的節奏。 NVIDIA 和 AMD 無疑已經加快了他們的路線圖，以某種一年的節奏進行。您是否發現您的業務受到產品路線圖加速影響或影響的方式發生了任何變化？

Yes, I would like to -- I think we're seeing more and more design activity -- like you said, the rhythm or the cadence of the products and also different kind of chips. It is not just the big data center chips, but even within them, there is more and more customization. Of course, the hyperscaler is doing their own silicon. And then now, we talked about our partnership with, for example, Qualcomm, and they are doing consumer or edge laptop AI devices.

是的，我想 - 我認為我們看到越來越多的設計活動 - 就像你說的，產品的節奏或節奏以及不同類型的晶片。不僅僅是大數據中心晶片，即使在它們內部，也有越來越多的客製化。當然，超大規模廠商正在生產自己的晶片。現在，我們談論了與高通等公司的合作夥伴關係，他們正在開發消費性或邊緣筆記型電腦人工智慧設備。

So the amount AI is also spreading to other verticals, not just the obvious -- the big one on data center. And data center design is accelerating. And I think than when we look at it, we still see that the data center part of AI still should accelerate, at least the visibility we have for next couple of years. So we'll see how that goes.

因此，人工智慧的數量也在蔓延到其他垂直領域，而不僅僅是顯而易見的——資料中心的大垂直領域。資料中心設計正在加速。我認為，當我們審視它時，我們仍然看到人工智慧的資料中心部分仍然應該加速，至少是我們在未來幾年的可見度。所以我們會看看情況如何。

And therefore -- and the other thing is automotive -- automotive takes normally a little longer, but there is -- already seeing design activity and the deployment maybe few years down -- maybe after data center. And then consumer and PC is already starting with phones and laptops.

因此，另一件事是汽車產業，汽車產業通常需要更長的時間，但已經看到設計活動和部署可能會推遲幾年，也許是在資料中心之後。然後消費者和個人電腦已經從手機和筆記型電腦開始。

So overall, we do see accelerating deployment of AI into the whole semiconductor ecosystem. And we are very proud of our position in it, whether it's 3D-IC, whether it is data center chips, whether it's our own AI products, we are winning almost all engagements on all -- on our kind of cadence.ai portfolio. So overall, we do see more and more design and deployment of AI infrastructure and our own AI products.

總的來說，我們確實看到人工智慧在整個半導體生態系統中的部署加速。我們對自己在其中的地位感到非常自豪，無論是 3D-IC、資料中心晶片還是我們自己的 AI 產品，我們都贏得了幾乎所有的合作——在我們的 cadence.ai 產品組合上。所以總的來說，我們確實看到越來越多的人工智慧基礎設施和我們自己的人工智慧產品的設計和部署。

And if I could just come back to Josh's question -- sorry -- if I could just come back to Josh's question on the revenue mix for Q3, for a recurring revenue, we expect -- sorry -- 80% to 85% of revenue to be recurring for the year. And Q3 includes the middle of that range. And then the balance is a Q4. So you can do the math work out what the upfront piece is.

如果我能回到喬許的問題——抱歉——如果我能回到喬許關於第三季收入組合的問題，對於經常性收入，我們預計——抱歉——佔收入的 80% 到 85%年內重複出現。第三季包括該範圍的中間部分。然後餘額就是Q4。所以你可以透過數學算出前期的部分是什麼。

Jay Vleeschhouwer, Griffin Securities.

Jay Vleeschhouwer，格里芬證券。

Thank you. Good evening. Anirudh, a question about the evolution of the product portfolio for EDA generally and perhaps for SD&A, specifically. What I'd like to ask about is how you're thinking about packaging products. Over the last year, you've introduced a couple of products with the term studio in the name, and I'm wondering if you're thinking about more and more bundling or packaging of our that kind via that nomenclature for the EDA products?

謝謝。晚安. Anirudh，這是一個關於 EDA 產品組合演變的問題，具體來說可能是關於 SD&A 的產品組合演變。我想問的是您如何看待產品包裝。去年，你們推出了一些名稱中帶有「工作室」一詞的產品，我想知道你們是否正在考慮透過 EDA 產品的命名法來越來越多地捆綁或包裝此類產品？

And then specifically for SD&A, now that you do have multiple codes, how are you thinking about packaging or integrating across the various simulation codes that you've assembled now in acquisition? Then I'll ask my follow-up.

然後，特別是對於 SD&A，既然您確實擁有多個程式碼，那麼您如何考慮打包或整合您現在在採集中組裝的各種模擬程式碼？然後我會問我的後續。

Yeah, hi, Jay. Good question. So as you know, in EDA, when we go to lower nodes, there is more integrated solutions which are required, whether it's innovative digital or analog or verification. And that is further accelerated by use of AI. So like Cerebrus, for example, in digital, we'll integrate not just place-and-route, but also synthesis and sign-offs. So I think that trend is definitely there.

是的，嗨，傑伊。好問題。如您所知，在 EDA 中，當我們進入較低的節點時，需要更多的整合解決方案，無論是創新的數位、類比還是驗證。人工智慧的使用進一步加速了這個過程。例如，就像數位領域的 Cerebrus 一樣，我們不僅會整合佈局佈線，還會整合綜合和簽核。所以我認為這種趨勢肯定是存在的。

And same thing with Verisium, our leading AI product for verification also integrate the four major verification platforms we have. So it is more and more platform-driven approach, and we can do that now with SD&A, now that we have a complete portfolio. And we mentioned like a leading EV company like OEM, one of the leading -- the most advanced EV companies deployed our entire portfolio.

與 Verisium 一樣，我們領先的人工智慧驗證產品也整合了我們擁有的四大驗證平台。因此，這是越來越多的平台驅動方法，現在我們可以透過 SD&A 做到這一點，因為我們擁有完整的產品組合。我們提到像 OEM 這樣的領先電動車公司，最先進的電動車公司之一部署了我們的整個產品組合。

So as we have a bigger portfolio in SD&A, it does lead us do what we have always done in EDA -- focus on solutions, not just on individual products and indicate solutions with our kind of native integration, whether it's analog, digital verification and now with SD&A.

因此，當我們在SD&A 領域擁有更大的產品組合時，它確實引導我們做我們在EDA 領域一直以來所做的事情——專注於解決方案，而不僅僅是單個產品，並透過我們的本地集成來指示解決方案，無論是類比、數位驗證或現在與 SD&A 合作。

All right. As follow-up, I know it's still quite early in the propagation of AI and ML by you and your peers to the customers. But are you beginning to see any commonality or convergence towards a relatively small number of use cases that customers are mostly employing the tools for? And then relatedly, are you also seem AI/ML adoption having any meaningful effect on your services revenue?

好的。作為後續行動，我知道您和您的同行向客戶傳播人工智慧和機器學習還處於早期階段。但是，您是否開始看到客戶主要使用這些工具的相對較少的用例有任何共同點或趨同性？與此相關的是，您認為人工智慧/機器學習的採用是否對您的服務收入產生了任何有意義的影響？

Yes, Jay, so what I would like to say is that the number of use cases I see is increasing at this point. I mean, the -- of course, one of the biggest use case that we started with was digital implementation, since it is so kind of -- a heavy kind of design process. So automating the digital implementation process was huge benefit. Ans we thought even this quarter, Cerebrus, being deployed as one of the leading system companies for the default flow also used by Samsung, also, you see verification being used by Qualcomm.

是的，傑伊，所以我想說的是，目前我看到的用例數量正在增加。我的意思是，當然，我們開始的最大用例之一是數位實施，因為它是一種繁重的設計流程。因此，數位化實施過程的自動化帶來了巨大的好處。我們認為，即使在本季度，Cerebrus 也被部署為三星使用的預設流程的領先系統公司之一，而且您還會看到高通正在使用驗證。

So I think what is happening in that Cerebrus or the implementation use case -- two things -- one is that it is going not just for design but also for DTCO -- design technology co-optimization and also for higher level in the design process like floor planning and 3D-IC exploration. So it's not just for implementation of the design but also for architecture and exploration.

所以我認為 Cerebrus 或實施用例中發生的事情有兩件事，一是它不僅適用於設計，還適用於 DTCO——設計技術協同優化以及設計過程中的更高水平例如平面圖和 3D-IC 探索。所以它不只是為了設計的實現，也是為了架構和探索。

And the other thing is like there is more workflow automation. As customers get used to Cerebrus, they are using it not just towards the end of the design process. They're using it right from the beginning throughout the design process. So it allows us to do more workflow automation, and Cerebrus has also evolved to allow much more of a entire workflow rather than a specific implementation use case.

另一件事是工作流程自動化程度更高。隨著客戶習慣了 Cerebrus，他們不僅在設計過程的最後階段使用它。他們從一開始就在整個設計過程中使用它。因此，它允許我們進行更多的工作流程自動化，並且 Cerebrus 也已經發展到允許更多的整個工作流程，而不是特定的實施案例。

And then same thing is happening in terms of more and more use cases. For example, packaging; Allegro X is doing pretty well. And recently, one of the leading customers in 3D-IC used this capability to automate, for example, routing, for automating, placement, which was not there before in PCB and package design.

然後越來越多的用例正在發生同樣的事情。例如，包裝； Allegro X 表現相當不錯。最近，3D-IC 領域的領先客戶之一利用這項功能實現了自動化，例如佈線、貼裝的自動化，這在 PCB 和封裝設計中是不存在的。

So overall, I do think it is maturing of the workflows. And then with this LLMs and GenAI, we have several workflows for taking spec to RTL, and we highlighted some of them last quarter. So I actually do see finally that in the -- we were always kind of building out the AI infrastructure, these big companies designing chips.

總的來說，我確實認為工作流程正在成熟。然後，透過 LLM 和 GenAI，我們有幾個將規範納入 RTL 的工作流程，我們在上個季度重點介紹了其中的一些工作流程。所以我實際上最終確實看到了——我們總是在建立人工智慧基礎設施，這些大公司在設計晶片。

But I do see now there's a turning point and deployment of AI for the design process. With the initial work flow being Cerebrus and digital implementation now to -- expanding LLM-based spec, expanding to the DTCO, expanding to 3D-IC, of course, expanding to analog, packaging, verification. And we do have the most comprehensive a portfolio in terms of all five major center product lines. So actually, it's a pretty encouraging view compared to a year ago.

但我確實看到現在設計過程出現了一個轉折點和人工智慧的部署。最初的工作流程是 Cerebrus，現在數位實作正在擴展基於 LLM 的規範，擴展到 DTCO，擴展到 3D-IC，當然，也擴展到類比、封裝、驗證。就所有五個主要中心產品線而言，我們確實擁有最全面的產品組合。所以實際上，與一年前相比，這是一個非常令人鼓舞的觀點。

Harlan Sur, JPMorgan.

哈蘭‧蘇爾，摩根大通。

Hi, good afternoon. Thanks for taking my question. The bookings will fall for the full year still expected to be 40% first half, 60% second half, because if it is, then that would imply book to bill greater than 1 for the full year, total backlog up about 9% this year to about $6.5 billion. But I guess how much of that backlog this due to the BETA CAE acquisition. What I'm just trying to figure out is ex- BETA CAE, if core cadence orders and backlog are expected to be up this year, which will continue the strong sort of six to seven year trend of increasing orders and backlog for the team?

嗨，下午好。感謝您提出我的問題。全年預訂量仍將下降，預計上半年為 40%，下半年為 60%，因為如果是這樣，那就意味著全年預訂量將大於 1，今年總積壓量將增加約 9%至約65億美元。但我猜其中有多少積壓是因為 BETA CAE 收購造成的。我只是想弄清楚的是，前BETA CAE，如果今年核心節奏訂單和積壓訂單預計會增加，這將延續團隊訂單和積壓訂單增加六到七年的強勁趨勢？

Yes, Harlan, again like we're not guiding bookings, but we were very, very pleased with the strong first half for bookings. BETA CAE contribution to backlog is very, very small. It's immaterial. Because BETA CAE, their revenues upfront. So that's the upfront piece of business rather than the recurring revenue. But yeah, we're very pleased. I mean, you can typically expect us to always be driving for a book-to-bill of greater than 1. But we don't guide bookings though.

是的，哈倫，就像我們不指導預訂一樣，但我們對上半年的強勁預訂感到非常非常滿意。 BETA CAE 對積壓的貢獻非常非常小。這無關緊要。因為 BETA CAE，他們的收入是預付的。所以這是前期業務而不是經常性收入。但是，是的，我們非常高興。我的意思是，您通常可以期望我們的預訂比帳單比始終大於 1。

Okay, perfect. Thank you. Anirudh, there's a pretty interesting dynamic with your memory customers. Well, the big customers of your custom product family, Virtuoso. But there are moving more and more to advanced digital design. The HDL console logic chip, for example, is moving to leading-edge technologies and advanced chip design. Similarly, with some of the nan customers, they're moving towards more of this sort of bonded CMOS periphery to array.

好的，完美。謝謝。 Anirudh，您的記憶體客戶之間有一個非常有趣的動態。好吧，你們客製化產品系列的大客戶 Virtuoso。但越來越多的人轉向先進的數位設計。例如，HDL 控制台邏輯晶片正在轉向領先的技術和先進的晶片設計。同樣，對於一些 nan 客戶，他們正在轉向更多這種將 CMOS 週邊設備黏合到陣列的方式。

The periphery chip again, is also moving towards advanced digital design as well. So are you starting to see more adoption of your vast digital implementation and verification products by your memory customers and then does the leadership in memory via virtual also sort of give you an advantage as they bring on more advanced logic design capabilities?

同樣，外圍晶片也正在朝向先進的數位設計邁進。那麼，您是否開始看到您的記憶體客戶更多地採用您的大量數位實施和驗證產品，然後透過虛擬技術在記憶體方面的領先地位是否也為您帶來了優勢，因為它們帶來了更先進的邏輯設計能力？

Yes, Harlan. That's a great observation. And we are fortunate to have very deep and long-standing partnership with all the major primary companies. At least, there are three big ones. And then, maybe two the next level. But overall, we are -- given our strength, like you mentioned in Virtuoso, which is the platform for choice for all memory implementation. And yes, there is a lot more digital and implementation design happening at memory companies, primarily driven by HBM and other trends.

是的，哈倫。這是一個很好的觀察。我們很幸運能夠與所有主要的主要公司建立非常深入和長期的合作關係。至少，有三個大的。然後，也許兩個下一個級別。但總的來說，鑑於我們的實力，就像您在 Virtuoso 中提到的那樣，Virtuoso 是所有記憶體實現的首選平台。是的，記憶體公司正在進行更多的數位化和實施設計，這主要是由 HBM 和其他趨勢推動的。

And actually, also there is some kind of -- I mean, they were always doing digital, but it's a lot more now. And there is a trend of integrating TSMCs technologies with kind of memory. And given our strong partnership with TSMC, that also helps us with the memory companies. And as you know, they are also doing a lot more 3D-IC, all the three big memory companies. And these memory layers are going from -- they're actually one of the most advanced 3D-IC with the memory layers going from 8 to 12. And that also plays to our strengths. And even in my prepared remarks, I mentioned, for example, our partnership with Samsung and 3D-IC.

事實上，還有某種——我的意思是，他們一直在做數位化的事情，但現在更多了。並且有一種趨勢是將台積電的技術與某種記憶體結合。鑑於我們與台積電的牢固合作關係，這也有助於我們與記憶體公司的合作。如您所知，三大儲存公司都在生產更多的 3D-IC。這些儲存層實際上是最先進的 3D-IC 之一，儲存層從 8 層增加到 12 層。甚至在我準備好的演講中，我也提到了我們與三星和 3D-IC 的合作夥伴關係。

And then so it's true with the other kind of two major players in memory. So we are pleased in our position in memory and emerging trends of HBM and 3D-IC integration. And we will see how that how that progresses. But I think memory is often overlooked in -- I don't need to tell you but just in general, memory is often overlooked in the big AI super cycle. It's not the big chips logics, but memories play very essential role. And we are very well-positioned both with the leaders like NVIDIA on the logic side, and then we highlighted Samsung and the other big memory plays in general so.

記憶中的另外兩位主要球員也是如此。因此，我們對我們在記憶體領域的地位以及 HBM 和 3D-IC 整合的新興趨勢感到滿意。我們將看看事情如何進展。但我認為記憶經常被忽視——我不需要告訴你，但總的來說，記憶在大人工智慧超級週期中經常被忽視。這不是大晶片邏輯，但記憶體起著非常重要的作用。我們在邏輯方面與 NVIDIA 等領導者處於非常有利的位置，然後我們重點介紹了三星和其他大型記憶體公司。

Thank you for the insights.

感謝您的見解。

Jason Celino, KeyBanc Capital Markets.

Jason Celino，KeyBanc 資本市場。

Great. Thanks for taking my questions. So lots of questions upon hardware timing. But I think, John, on prior calls, you said that hardware delivery time typically are like 8 to 10 weeks. That's what it is for like a normal cycle. But are you saying the lead times for the Z3, X3 are longer than this because the demand is much better than what you're seeing?

偉大的。感謝您回答我的問題。關於硬體時序的很多問題。但我認為，約翰，在之前的電話中，您說過硬體交付時間通常為 8 到 10 週。這就是正常循環的目的。但您是說 Z3、X3 的交貨時間比這個長，是因為需求比您看到的要好得多嗎？

Demand is strong, demand is strong. What I was trying to point out was that we do have inventory of the older systems that we can deliver right away. The newer systems we're having to build them as quickly as we can because the orders are coming in faster than we can build them. So the lead times is a bit of a moving target in that respect. We are planning to purchase a lot of raw materials and builders quickly we can in Q3. So you'll see a significant uptick in our inventory balance at the end of Q3.

需求旺盛，需求旺盛。我想指出的是，我們確實擁有可以立即交付的舊系統庫存。我們必須盡快建立較新的系統，因為訂單的速度比我們建造它們的速度要快。因此，從這方面來說，交貨時間是一個不斷變化的目標。我們計劃在第三季盡快購買大量原料和建築商。因此，您會在第三季末看到我們的庫存餘額顯著增加。

Okay. No, that's helpful. And then just a clarification. I think you were saying like the FDA group to hit your guide needed to do like mid to high single-digit growth. I'm not familiar with SVG? Is that the functional verification kind of guide for the year and then if you're parsing out like does that imply -- what do we need to see on IP since that the other upfront component to hit the guide? Thanks.

好的。不，這很有幫助。然後只是澄清一下。我想你是說，像 FDA 小組一樣，要達到你的指南，需要達到中高個位數成長。我不熟悉 SVG？這是今年的功能驗證指南嗎？謝謝。

Yeah, that's fair. Yeah, IP is having a really strong year as a system design analysis. There will be our two fastest growers for the year, And then again, there's some upfront revenue from them. It's more weighted towards Q4 versus Q3. So we have -- the shape of the curve is really driving our guide. And I would categorize it as prudent. Anirudh, would you add anything?

是的，這很公平。是的，IP 作為系統設計分析今年經歷了非常強勁的一年。今年我們將有兩家成長最快的公司，而且，他們還會帶來一些預付費用。與第三季相比，第四季的權重更大。所以我們知道——曲線的形狀確實在驅動我們的指南。我將其歸類為謹慎。阿尼魯德，你能補充點什麼嗎？

No, that's, as I said John and sorry, for the acronym, SVG, system verification group. So when we say, SVG, that means verification. So I think that's what John was implying. Verification should grow. But right now, we are not assuming massive growth in verification for this year, but it should grow compared to last year.

不，正如我所說的，約翰，抱歉，這是縮寫 SVG，系統驗證組。所以當我們說 SVG 時，這意味著驗證。所以我認為這就是約翰所暗示的。驗證應該增長。但目前，我們並不假設今年的驗證量會大幅成長，但與去年相比應該會有所成長。

And then like you mentioned some of the upfront revenues also IP, if you remember, we highlighted in Q1 a new partnership with Intel and they're -- are deploying our IP portfolio for the Intel process. So it takes time to do that and deliver to that. And some of it is in Q3 and Q4.

然後，就像您提到的一些前期收入以及 IP 一樣，如果您還記得的話，我們在第一季強調了與英特爾的新合作夥伴關係，他們正在為英特爾流程部署我們的 IP 產品組合。因此，需要時間來做到這一點並實現這一目標。其中一些是在第三季和第四季。

And also this time, we talked about our expansion partnership with Intel both on EMIB, packaging and 3D-IC. platform. And 18A, just to clarify the --

這次，我們也討論了與英特爾在 EMIB、封裝和 3D-IC 方面的擴展合作夥伴關係。平台。 18A，只是為了澄清—

Yes, thanks for the lingo acronym help. Very helpful.

是的，感謝行話縮寫的幫助。很有幫助。

Lee Simpson, Morgan Stanley.

李‧辛普森，摩根士丹利。

Thanks for fitting in and well done on a good quarter. Just wanted to get some clarification. I don't know if I heard correctly, but I think I heard you say that, a mobile OEM has taken the Z3 platform. And if that's the case, do you have a sense for what the emulation work might be? Would it be for chips on device or would it be for chips both on device and perhaps in let's say a network situation? Thanks.

感謝您的合作並在美好的季度中表現出色。只是想得到一些澄清。我不知道我聽得是否正確，但我想我聽到你說，一家行動OEM已經採用了Z3平台。如果是這樣的話，您是否了解模擬工作可能是什麼？是針對裝置上的晶片還是針對裝置上的晶片以及可能在網路情況下的晶片？謝謝。

Well, good question. We don't comment on individual or a customer specific customer use cases. But in general, these hardware systems, as you know, are used both for chip design and for system software bring up. So both use cases are there. And we are the leading platform given Palladium and Protium. And this is true for all -- even in AI use case, even the data center AI use case, lot of it is for software development.

嗯，好問題。我們不會評論個人或客戶特定的客戶用例。但總的來說，如您所知，這些硬體系統既用於晶片設計，也用於系統軟體的建置。所以這兩個用例都存在。我們是 Palladium 和 Protium 的領先平台。這對所有人來說都是如此——即使在人工智慧用例中，甚至在資料中心人工智慧用例中，許多都是用於軟體開發的。

Actually Palladium is a platform for choice to even lower AI chip customers to give you a model to their customers because even before they have a chip, they can give a Palladium model to see how it performs. So it's both for chip design and also for system design and system software. And that's true for multiple major verticals, data center, mobile, automotive, these things.

實際上，Palladium 是一個可供選擇的平台，甚至可以讓 AI 晶片客戶為他們的客戶提供一個模型，因為即使在他們擁有晶片之前，他們也可以提供一個 Palladium 模型來看看它的性能如何。所以它既適用於晶片設計，也適用於系統設計和系統軟體。對於多個主要垂直行業、資料中心、移動、汽車等都是如此。

Yes. Thanks. Just on those multiple verticals, if we look at the incidence of 3D-ICs coming through, I get the sense that that's starting to hit the tape now in automotive. You have mentioned EV companies as collaboration of late. You have mentioned a number of chip makers also.

是的。謝謝。就這些多個垂直領域而言，如果我們看看 3D-IC 的出現率，我會感覺到，它現在開始在汽車領域出現。您最近提到了電動車公司的合作。您也提到了一些晶片製造商。

I wonder if it's possible at this point or even if it's relevant to just maybe talk about the split between the customers. Are we talking system customers, i.e., OEMs in Tier 1 and the majority right now? Or is it still major semi chip makers for the automotive work? Thanks.

我想知道目前是否有可能，或者是否與談論客戶之間的分歧有關。我們談論的是系統客戶，即目前一級的 OEM 和大多數嗎？或者它仍然是汽車行業的主要半導體晶片製造商嗎？謝謝。

Great question. So first to -- like you correctly pointed out, I think the 3D-IC is a lot more prevalent in automotive than, let's say, 6 to 12 months ago. And of course, the original genesis is HPC and data center AI. But now all these chiplets and 3D-IC platforms are moving to automotive. And I think over time, we'll move to other verticals like consumer. They already moved to laptop for example. The several of the laptop chips are 3D-IC, but I think that will be the progression. It will gradually go to all verticals, but it definitely active in automotive.

很好的問題。首先，正如您正確指出的那樣，我認為 3D-IC 在汽車領域比 6 到 12 個月前要普遍得多。當然，最初的起源是 HPC 和資料中心人工智慧。但現在所有這些小晶片和 3D-IC 平台都正在轉向汽車領域。我認為隨著時間的推移，我們將轉向消費者等其他垂直領域。例如，他們已經轉向筆記型電腦。一些筆記型電腦晶片是 3D-IC，但我認為這將是進步。它將逐漸進入所有垂直領域，但它肯定會活躍在汽車領域。

Because as you know, with the chiplet architecture, the customer doesn't have to redesign all the chips and also they can use some standard chips and have some specific which are more value added for them. And that's particularly true in automotive as each OEM wants to differentiate versus the other OEM. So this trend is not just for semi companies to your question, it's also there in OEMs.

因為如您所知，透過小晶片架構，客戶不必重新設計所有晶片，他們也可以使用一些標準晶片並擁有一些對他們來說更具附加價值的特定晶片。在汽車行業尤其如此，因為每個原始設備製造商都希望與其他原始設備製造商形成差異化。因此，對於你的問題來說，這種趨勢不僅適用於半導體公司，也存在於原始設備製造商中。

And I think that's using more -- I do think that the 3D-IC trend makes even more sense for end OEMs because then they are able to customize and differentiate versus the other. So we are seeing that and we are seeing that in other geographies as well. Because as you know China is particularly strong in EV and then US and then Japan, there's a lot of activity. So overall, I think automotive, there is more activity on 3D-IC, including both semi and ODMs.

我認為這會使用更多——我確實認為 3D-IC 趨勢對於終端 OEM 來說更有意義，因為這樣他們就能夠進行客製化並與其他廠商區分開來。所以我們看到了這一點，我們也在其他地區看到了這一點。因為如您所知，中國在電動車領域尤其強大，然後是美國和日本，因此有很多活動。因此，總的來說，我認為汽車產業在 3D-IC 方面有更多的活動，包括半成品和 ODM。

Thanks, Anirudh. Great color.

謝謝，阿尼魯德。顏色很棒。

Clarke Jeffries, Piper Sandler.

克拉克·傑弗里斯，派珀·桑德勒。

Thank you for taking the question. My first question is yes, Anirudh, how do you expect the delivery of these third generation systems translate to additional software consumption in the recurring revenue portfolio? These products are happening with verification acceleration, software bring up, but how do you see that additional consumption panning out after the delivery of a new ZRX System? And then I will follow.

感謝您提出問題。我的第一個問題是，Anirudh，您預計這些第三代系統的交付如何轉化為經常性收入組合中的額外軟體消耗？這些產品的出現伴隨著驗證加速和軟體啟動，但是您如何看待交付新 ZRX 系統後額外消耗的情況？然後我會跟隨。

Yeah, great question. Like what John was saying as when we say SVG, system verification group, so hardware is part of that group. Even though hardware is a significant business, we organized as part of verification. And one of the big reasons for that is apart from in verification, apart from the hardware systems, we have lot of other verification product which are doing pretty well. Like Jasper for formal verification, Xcelium for logics simulation. And the customer is looking for a integrated solution on verification.

是的，很好的問題。就像約翰所說的，當我們說 SVG 時，系統驗證組，所以硬體是該組的一部分。儘管硬體是一項重要業務，我們還是將組織作為驗證的一部分。其中一個重要原因是除了驗證之外，除了硬體系統之外，我們還有很多其他驗證產品做得很好。就像 Jasper 用於形式驗證，Xcelium 用於邏輯模擬。客戶正在尋找整合的驗證解決方案。

To the earlier question that Jay had about what is happening and SDA. In EDA, we always have believed for last several years that it's going to be integrated solution in verification. So the stronger our hardware products get, we do expect it should help our software verification products, things like Xcelium and Jasper and Verisium.

對於 Jay 之前提出的關於正在發生的事情和 SDA 的問題。在 EDA 領域，過去幾年我們一直相信它將成為驗證中的整合解決方案。因此，我們的硬體產品越強大，我們確實希望它能夠幫助我們的軟體驗證產品，例如 Xcelium、Jasper 和 Verisium。

Because a lot of -- some of the hardware capacity is also used for what is called SimAccel, simulation acceleration in which they use palladium to accelerate logic simulation. So there is no natural tie-in between verification software products and verification hardware products. Now exactly how it pans out, we just have to see. But the trend in hardware should help us in our overall portfolio strength.

因為很多——一些硬體能力也用於所謂的 SimAccel，即模擬加速，他們使用鈀來加速邏輯模擬。因此，驗證軟體產品和驗證硬體產品之間並不存在天然的搭配。現在具體結果如何，我們只需要看看。但硬體的趨勢應該有助於我們增強整體產品組合的實力。

Perfect. And then one follow-up for John. I think just to kind of finally put a cap on the whole discussion around timing. I guess is it fair to say that that sort of $600 million-odd of upfront revenue in the second half -- maybe a majority of that is coming from IP and SD&A. and not necessarily the Gen 3 systems and that maybe the interpretation that there is going to be more of a demand curve in the beginning of '25 rather than this $600 million being strongly driven by 3rd-gen Palladium and Protium. Is that? Is that a fair takeaway?

完美的。然後是約翰的後續行動。我認為這只是為了最終限制有關時間安排的整個討論。我想可以公平地說，下半年的預付款收入超過 6 億美元——也許其中大部分來自 IP 和 SD&A。不一定是第 3 代系統，這可能是一種解釋，即 25 年初將會出現更多的需求曲線，而不是由第 3 代 Palladium 和 Protium 強力驅動的 6 億美元。就是它？這是一個公平的外賣嗎？

I think that is, Clarke. Yes, that's exactly right, this. I mean, we always knew that it would take time to build the hardware system. So we originally included that in our guide in the first place.

我想那就是，克拉克。是的，完全正確，就是這個。我的意思是，我們一直都知道建立硬體系統需要時間。所以我們最初將其包含在我們的指南中。

Right. Thank you for taking my questions.

正確的。感謝您回答我的問題。

Joe Vruwink, Baird.

喬·弗魯溫克，貝爾德。

Great. Thanks for fitting me in. I did want to follow up that stay with verification and just this raw material investment. So the thing I'm trying to reconcile is, I would imagine you entered this year expecting the new platform, strong demand is meeting the scale production and therefore invest in inventory. So I guess I'm wondering what changed in the quarter that warranted this -- updated this assumption for cash flow and raw material purchase?

偉大的。感謝您讓我加入。所以我想要協調的是，我想你今年進入時期待新平台，強勁的需求滿足規模生產，因此投資庫存。所以我想我想知道這個季度發生了什麼變化，導致了這一點——更新了現金流和原材料購買的假設？

And really at the heart of the question, did something change about your hardware demand expectation, not necessarily for 2024, but maybe out into 2025? And we just happened to be getting that news now because of the need to update your cash from ops forecasts associated with the inventory input.

問題的核心是，您的硬體需求預期是否發生了變化（不一定是 2024 年，但可能會持續到 2025 年）？我們現在恰好收到這個消息，因為需要更新與庫存輸入相關的營運預測中的現金。

Yes, great question. Joe. I mean, the leaders of that business spent plenty of time with them this last quarter because they were monitoring what the demand was like for the new systems. Demand is quite strong. And then the key thing to highlight here is it's a one-time multi-tier purchase of inventory raw materials. They feel very, very confident in the longevity of the systems and the longevity of that demand. And they wanted to prepurchase multi-years of inventory gain in Q3.

是的，很好的問題。喬.我的意思是，該業務的領導者在上個季度花了很多時間與他們在一起，因為他們正在監控新系統的需求。需求相當強勁。這裡要強調的關鍵一點是，這是對庫存原料的一次性多層採購。他們對系統的壽命和需求的壽命非常非常有信心。他們希望在第三季預購多年累積的庫存。

Now that was news to us, if you like, so we thought that onetime things we want to include at all now in Q3 and not impact -- that doesn't impact next -- I mean, it will be a favorable for next year's operating cash.

現在這對我們來說是新聞，如果你願意的話，所以我們認為我們現在想要在第三季度包含的東西而不是影響 - 這不會影響下一步 - 我的意思是，這將有利於明年的經營現金。

Okay, great. Then lastly, you mentioned at the start, quarters for cadence.ai tripled year over year. I don't think that's possible without also getting a less than the base business, both across CDA and SD&A. I guess on an ACV run rate basis, what has the AI lineup meant for Cadence overall?

好的，太好了。最後，您在開頭提到，cadence.ai 的季度同比增長了兩倍。我認為如果 CDA 和 SD&A 的業務都低於基本業務，這是不可能的。我想在 ACV 運行率的基礎上，AI 陣容對 Cadence 整體意味著什麼？

And does this create a step-up in value where as you start pulling these contracts from backlog and coming quarters, it will become more noticeable in revenue and we'll kind of see a contribution and more than we have to, at this point?

當你開始從積壓訂單和未來幾季中撤回這些合約時，這是否會創造價值的提升，它在收入方面會變得更加明顯，我們會在這一點上看到比我們必須做的更多的貢獻？

Yeah. Good question. I mean, AI is adding -- like I was mentioning before, it's almost become like table stakes now. So all our new contracts include our cadence.ai portfolio as customers get more and more kind of used to using them. And once you start using the AI portfolio, it's difficult to go back to not using them. So without getting into like what happened exactly to future revenue and bookings, we are always cautious about that. But in general, there is uptick with more customers deploying AI. And whenever we have new contracts, we are including them as it makes sense in them.

是的。好問題。我的意思是，人工智慧正在增加——就像我之前提到的，它現在幾乎變成了賭注。因此，隨著客戶越來越習慣使用我們的 cadence.ai 產品組合，我們所有的新合約都包含其中。一旦你開始使用人工智慧產品組合，就很難再回到不使用它們的狀態。因此，在不了解未來收入和預訂情況的情況下，我們始終對此保持謹慎態度。但總體而言，部署人工智慧的客戶數量有所增加。每當我們簽訂新合約時，我們都會將其納入其中，因為其中有意義。

Okay. Thank you, very much.

好的。非常感謝。

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

現在我將把電話轉回給阿尼魯德·德夫甘 (Anirudh Devgan) 致閉幕詞。

Thank you all for joining us this afternoon. It's an exciting time for Cadence with strong business momentum and growing opportunities with semiconductor and system customers. With a world-class employee base, we continue in delivering to our innovative roadmap and working hard to delight their customers and partners. On behalf of our Board of Directors, we thank our customers, partners, and investors for their continued trust and confidence in Cadence.

感謝大家今天下午加入我們。對於 Cadence 來說，這是一個令人興奮的時刻，其業務勢頭強勁，半導體和系統客戶的機會不斷增長。憑藉世界一流的員工基礎，我們繼續實現我們的創新路線圖，並努力取悅他們的客戶和合作夥伴。我們謹代表董事會感謝客戶、合作夥伴和投資者對 Cadence 的持續信任和信心。

Thank you for participating in today's Cadence second quarter 2024 earnings conference call. This concludes today's call. You may now disconnect.

感謝您參加今天的 Cadence 2024 年第二季財報電話會議。今天的電話會議到此結束。您現在可以斷開連線。