英特爾 (INTC) 2016 Q2 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Intel Corporation second-quarter 2016 earnings conference call.

女士們、先生們，大家好。歡迎參加英特爾公司2016年第二季財報電話會議。

(Operator Instructions)

（操作說明）

As a reminder, this conference call may be recorded. I would now like to turn the conference over to Mark Henninger. You may begin.

再次提醒，本次電話會議可能會被錄音。現在我將把會議交給馬克·亨寧格主持。你可以開始了。

Thank you, and welcome everyone to Intel's second-quarter 2016 earnings conference call. By now you should have received a copy of our earnings release and the CFO commentary that goes along with it. If you've not received both documents, they're available on our investor website, intc.com.

謝謝大家，歡迎各位參加英特爾2016年第二季財報電話會議。現在您應該已經收到我們的獲利報告以及財務長的評論。如果您尚未收到這兩份文件，它們可以在我們的投資者網站 intc.com 上找到。

I'm joined today by Brian Krzanich, our CEO, and Stacy Smith, our Chief Financial Officer. In a moment we will hear brief remarks from both of them, followed by Q&A.

今天與我一同出席的有我們的執行長布萊恩·科再奇和財務長史黛西·史密斯。稍後我們將聽到他們兩人的簡短發言，然後是問答環節。

Before we begin, let me remind everyone that today's discussion contains forward-looking statements based on the environment as we currently see it, and as such does include risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially.

在開始之前，請允許我提醒大家，今天的討論包含基於我們目前所見環境的前瞻性陳述，因此確實存在風險和不確定性。有關可能導致實際結果與預期結果存在重大差異的具體風險因素的更多信息，請參閱我們的新聞稿。

Also if during this call we use any non-GAAP financial measures or references, we'll post the appropriate GAAP financial reconciliation to our website, intc.com. With that, let me hand it over to Brian.

此外，如果在本次電話會議期間我們使用任何非GAAP財務指標或參考資料，我們將在我們的網站intc.com上發布相應的GAAP財務調節表。那麼，現在讓我把麥克風交給布萊恩。

Thanks, Mark. Our top-line results for the quarter came in right in line with outlook. And profitability this quarter exceeded our expectations. Year-over-year growth this quarter was 3% overall as we transformed Intel into a Company that powers the cloud and billions of smart, connected devices. We continue to focus on growth in line with this transformation, as evidenced by results in the data center, IoT and programmable solutions business this quarter.

謝謝你，馬克。本季營收與預期完全一致。本季獲利能力超出了我們的預期。本季年增3%，我們成功將英特爾轉型為一家為雲端運算和數十億智慧互聯設備提供動力的公司。我們將繼續專注於與此轉型相符的成長，本季資料中心、物聯網和可程式解決方案業務的業績就證明了這一點。

I'd like to take a few minutes to walk through these results and their implications. I will start with the Client Computing Group, where we saw a 3% decline in revenue year over year this quarter while operating margin was up 19%. These results were a little better than we expected, as the PC supply chain reduced inventories at a slightly slower rate while the two-in-one and enthusiast product lines continued to grow. We also started shipping our seventh generation core microprocessor, formerly known as Kaby Lake, and our latest LTE modem, known as 7360.

我想花幾分鐘時間詳細解讀這些結果及其意義。我先從客戶端計算集團說起，該集團本季的營收年減了 3%，但營業利潤率卻成長了 19%。這些結果比我們預期的要好一些，因為 PC 供應鏈減少庫存的速度略慢，而二合一電腦和發燒友產品線則持續成長。我們也開始出貨第七代酷睿微處理器（以前稱為 Kaby Lake）和最新的 LTE 數據機（稱為 7360）。

Next the Data Center, where revenue grew 5% year over year. Cloud service providers grew 9%, comm service providers grew 10%, and enterprise was down 1%. We achieved some critical milestones in the quarter that give us confidence in our growing momentum as we enter the second half of the year.

其次是資料中心，其營收年增了 5%。雲端服務供應商成長了 9%，通訊服務供應商成長了 10%，而企業級服務供應商下降了 1%。本季我們取得了一些關鍵里程碑，這讓我們對進入下半年後的發展勢頭充滿信心。

In the data center, we're seeing an ongoing preference for performance up and down the pricing stack. Average selling prices increased year over year in every microprocessor product segment, from Adam and Xeon D SOCs at the low end up through Xeon and Xeon Phi at the high end.

在資料中心領域，我們看到，無論價格層級高低，人們對效能的偏好都在不斷增強。從低階的 Adam 和 Xeon D SoC 到高階的 Xeon 和 Xeon Phi，每個微處理器產品細分市場的平均售價都逐年上漲。

We continued to gain share in network infrastructure throughout the entire segment, as Intel architecture becomes the solution of choice for the transformation of the network to SDN, NFE, and 5G. The significant share gains at the low end of the network infrastructure segment resulted in an overall 1% decline in data center CPU average selling prices.

隨著英特爾架構成為網路轉型為 SDN、NFE 和 5G 的首選解決方案，我們在整個細分市場中持續擴大在網路基礎設施領域的份額。網路基礎設施領域低階市場佔有率的顯著成長導致資料中心 CPU 平均售價整體下降 1%。

Progress in the data center extended beyond our CPU product lines. Our latest Xeon Phi accelerator, formerly known as Knights Landing, continued to ramp after shipping the first limited production units in December of last year. Xeon Phi revenue grew eight times in the first six months of this year versus all of 2015, gaining share in the supercomputing and machine learning segments.

資料中心領域的進步不僅限於我們的 CPU 產品線。我們最新的 Xeon Phi 加速器，以前稱為 Knights Landing，在去年 12 月交付了第一批限量生產的單元後，繼續擴大生產規模。今年前六個月，Xeon Phi 的收入比 2015 年全年增長了八倍，在超級計算和機器學習領域獲得了更多份額。

Omni-Path, our high performance computing fabric, was launched earlier this year and has already achieved 30% market segment share of the 100-gig fabric market. In June's top 500 supercomputing list, Omni-Path was deployed in half of the new 100-gig systems, pointing to the performance that this technology brings to the market.

Omni-Path 是我們今年稍早推出的高效能運算架構，目前已在 100G 架構市場中佔據 30% 的市場份額。在 6 月公佈的全球 500 強超級電腦排行榜中，Omni-Path 被部署在一半的新型 100G 系統中，這表明該技術為市場帶來了卓越的性能。

This quarter we also shipped our first silicon Photonics products for revenue, the industry's only fully integrated solution. We expect DCG's adjacent product lines, including Omni-Path, Silicon Photonics and ethernet, to collectively grow more than 20% for the full year, and this quarter make up 12% of DCG's revenue.

本季度，我們還推出了首批實現盈利的矽光子產品，這是業界唯一完全整合的解決方案。我們預計 DCG 的相鄰產品線，包括 Omni-Path、矽光子學和以太網，全年總成長將超過 20%，本季佔 DCG 收入的 12%。

The Internet of Things business was up 2% over last year, coming in below our expectations. We saw growth in the industrial and video verticals offset by an inventory burn after a very strong first quarter. We continue to see tremendous potential in this business.

物聯網業務較去年成長了 2%，低於我們的預期。工業和視訊垂直領域的成長被強勁的第一季後的庫存消耗所抵消。我們仍然認為這個產業擁有巨大的潛力。

A great example was demonstrated earlier this month when we announced our autonomous driving collaboration with BMW and Mobileye, marking a significant step for the auto industry as we work together to establish an industry standard, open platform for autonomous driving. In addition we're bringing Indian computing technology to power the next generation of BMW's highly autonomous and fully autonomous products, of the door locks to the data center.

本月初，我們宣布與寶馬和 Mobileye 合作進行自動駕駛領域的合作，這是一個很好的例子。我們共同努力，為自動駕駛建立一個行業標準的開放平台，這標誌著汽車行業邁出了重要一步。此外，我們還將印度的運算技術引入寶馬下一代高度自動化和完全自動化產品，從門鎖到資料中心，都將為之提供動力。

Our Memory business was down 20% over last year, and fell short of our expectations as a result of a more competitive pricing environment. While we acknowledge the cyclical and competitive nature of this business, we remain confident in our long-term growth prospects as a result of the new technologies we're bringing to this market.

由於競爭更加激烈的價格環境，我們的記憶體業務比去年下降了 20%，未能達到預期。雖然我們承認這個行業的周期性和競爭性，但由於我們正在為這個市場帶來新技術，我們對長期成長前景仍然充滿信心。

568 in Dalion, China started its initial 3-D NAND wafers late in the second quarter, but ahead of schedule. We also remain on track to ship 3-D Cross Point SSDs, branded Optane, by the end of the year, and look forward to delivering this exciting new breakthrough in memory to the industry.

中國大龍 568 於第二季末開始生產首批 3D NAND 晶圓，但比原計劃提前完成。我們仍按計劃在年底前交付 3D Cross Point SSD（品牌為 Optane），並期待將這項令人興奮的儲存技術新突破帶給業界。

The Programmable Solutions Group, formerly known as Altera, delivered great results. PSG grew 12% over Altera's results last year, a strength in [calms], infrastructure and the channel. PSG is on track to ship 14-nanometers, Stratex 10 samples this year. I'm very pleased with both the integration of this business and their strong execution. Our security business was up 10% as a restructuring the team completed last year, and their focused execution continues to deliver results.

可程式解決方案集團（前身為 Altera）取得了優異的成績。PSG 的表現比 Altera 去年成長了 12%，這得益於其在平靜水域、基礎設施和渠道方面的優勢。PSG預計今年交付14奈米Stratex 10樣品。我對這家公司的整合以及他們出色的執行力都非常滿意。由於團隊去年完成了重組，我們的安保業務成長了 10%，他們專注的執行力也持續帶來成果。

And finally, our restructuring initiative that we began last quarter is solidly on track. This program is changing where and how we invest in everything from research and development to sales and marketing.

最後，我們上季啟動的重組計劃進展順利。這項計劃正在改變我們在研發、銷售和行銷等各個方面的投資方向和方式。

In April we announced some important changes to our roadmaps in areas like SOCs and perceptual computing. These changes are accelerating our transformation to a Company that powers the cloud and the billions of smart, connected computing devices while increasing the profitability in our Client business. In total we expect this initiative will drive in a net run rate OpEx savings of $1.4 billion by mid-2017.

今年四月，我們宣布了在系統單晶片 (SOC) 和感知計算等領域路線圖的一些重要變化。這些變化正在加速我們向一家為雲端運算和數十億智慧互聯運算設備提供支援的公司轉型，同時提高我們客戶業務的獲利能力。我們預計，到 2017 年年中，這項措施將帶來 14 億美元的淨營運支出節省。

Looking ahead, I am very excited about the growing momentum heading into the second half of the year. While we remain cautious about the PC segment and continue to expect a decline in the high single digits of this year, we're expecting our businesses outside of CCG to collectively deliver double digit growth in the third quarter.

展望未來，我對下半年的發展動能感到非常興奮。儘管我們對個人電腦業務仍持謹慎態度，並繼續預計今年將出現接近兩位數的下滑，但我們預計除 CCG 以外的其他業務將在第三季度實現兩位數的增長。

We are seeing clear signs that our strategy is working, laying a solid foundation for growth built on the Data Center and the Internet of Things business, reinforced by the combination of Memory and FPGA, and bound together by connectivity. With that, let me turn it over to Stacy.

我們看到了明顯的跡象，表明我們的策略正在奏效，為以資料中心和物聯網業務為基礎的成長奠定了堅實的基礎，並透過記憶體和FPGA的結合得到了加強，並透過連接性將它們聯繫在一起。那麼，接下來就交給史泰西吧。

Thanks, Brian. In the second quarter we met our financial commitments and made good progress towards our restructuring goals. Our forecast reflects growing momentum as we enter the back half of 2016.

謝謝你，布萊恩。第二季度，我們履行了財務承諾，並在重組目標方面取得了良好進展。我們的預測反映了隨著我們進入 2016 年下半年，成長動能將持續增強。

Revenue for the second quarter was $13.5 billion, in line with expectations and up 3% year over year. Gross margin for the quarter of 62% was approximately 1 point higher than our expectations, primarily driven by lower platform unit costs. Spending on R&D and MG&A was $5.2 billion, in line with our expectations. We're on track to the restructuring announcement last earnings call, with a reduction of about 6,000 employees in the second quarter.

第二季營收為 135 億美元，符合預期，年增 3%。本季毛利率為 62%，比我們的預期高出約 1 個百分點，主要原因是平台單位成本降低。研發和管理費用支出為 52 億美元，符合我們的預期。我們正按計劃推進上次財報電話會議上宣布的重組計劃，第二季將裁員約 6,000 人。

Operating income of $3.2 billion was down 2% from a year ago. The effective tax rate for the quarter was 20%. Earnings per share of $0.59 was down $0.03 from a year ago.

營業收入為 32 億美元，比去年同期下降 2%。本季實際稅率為20%。每股收益為 0.59 美元，比去年同期下降 0.03 美元。

The Client Computing Group had revenue of $7.3 billion, down 3% year over year. Client Computing Group operating profit was $1.9 billion, up 19% from a year ago. This improvement is driven by lower overall spending and margin improvements in our mobile products and higher ASPs in the PC segment. The worldwide PC supply chain inventory levels came down a bit in the second quarter, and as we enter the second half they are at healthy levels.

客戶端計算集團的營收為 73 億美元，年減 3%。客戶端計算集團的營業利潤為 19 億美元，比上年同期成長 19%。這項改善得益於行動產品整體支出降低和利潤率提高，以及 PC 端平均售價上漲。第二季全球個人電腦供應鏈庫存水準略有下降，進入下半年後，庫存水準已處於健康水準。

Data Center revenue was $4 billion, up 5% year over year. The Data Center Group had operating profit of $1.8 billion, down 4% year over year, primarily driven by increased costs as we ramp 14-nanometer data center products. As we enter the second half we expect the enterprise segment of the business to stabilize and the cloud segment growth rate to accelerate. In addition, we expect increasing ASPs as we ramp our Broadwell-based server products.

資料中心營收為 40 億美元，年增 5%。資料中心集團的營業利潤為 18 億美元，年減 4%，主要原因是隨著我們逐步推出 14 奈米資料中心產品，成本增加。進入下半年，我們預期企業業務板塊將趨於穩定，而雲端業務板塊的成長速度將加快。此外，隨著我們基於 Broadwell 的伺服器產品不斷增產，我們預計平均售價 (ASP) 也將上漲。

Our Internet of Things segment achieved revenue of $572 million, with year over year growth of 2%. Our security business had revenue of $537 million, up 10% year over year.

我們的物聯網業務部門實現了 5.72 億美元的收入，年增 2%。我們的安防業務收入為 5.37 億美元，年增 10%。

Our Memory business had revenue of $554 million, down 20% year over year. This segment had an operating loss of $224 million as a result of continued pricing pressures, higher startup costs as we ramp 3-D NAND in our China factory, and an increased 3-D Cross Point spending.

我們的儲存業務收入為 5.54 億美元，年減 20%。由於持續的價格壓力、在中國工廠擴大 3D NAND 產能帶來的較高啟動成本以及 3D Cross Point 支出增加，該業務部門的營業虧損達 2.24 億美元。

The Programmable Solutions Group had revenue of $465 million, up 12% year over year when compared to Altera's results from a year ago. Operating profit was negative $62 million. This includes about $160 million in non-cash charges for inventory adjustments. Excluding these charges would result in about $100 million in positive operating profit.

可程式解決方案集團的營收為 4.65 億美元，比 Altera 去年同期的業績成長了 12%。營業利潤為負6200萬美元。這其中包括約 1.6 億美元的非現金庫存調整費用。剔除這些費用後，營業利潤約1億美元。

Total cash balance at the end of the quarter was roughly $17.7 billion, up $2.6 billion from the first quarter. Our total debt is $28.6 billion. Our net cash balance, total cash less debt and inclusive of our other longer term investments, is negative $5.7 billion. We're projecting to improve this net cash balance over the second half of the year.

本季末現金餘額總額約為 177 億美元，比第一季增加了 26 億美元。我們的總債務為286億美元。我們的淨現金餘額（總現金減去債務，並包括我們的其他長期投資）為負 57 億美元。我們預計下半年淨現金餘額將會改善。

We are generating healthy levels of free cash flow, which enable us to invest in our business and return cash to shareholders. This is demonstrated in our Q2 results, as we generated $3.8 billion of cash from operations in the second quarter, purchased $2.3 billion in capital assets and repurchased approximately $800 million of stock. In the second quarter we also paid $1.2 billion in dividends. And as of yesterday's close of market our dividend yield was about 3%.

我們產生了健康的自由現金流，這使我們能夠投資於我們的業務並向股東返還現金。從我們第二季的業績可以看出這一點，我們在第二季從經營活動中產生了 38 億美元的現金，購買了 23 億美元的資本資產，並回購了約 8 億美元的股票。第二季我們也支付了12億美元的股利。截至昨日收盤，我們的股息殖利率約為3%。

As we look forward to the third quarter of 2016, we are forecasting the midpoint of the revenue range of $14.9 billion. This forecast is at the high end of the average seasonal increase for the third quarter. We are forecasting the midpoint of the gross margin range to be 62%.

展望 2016 年第三季度，我們預測營收範圍的中位數為 149 億美元。這項預測處於第三季平均季節性成長的較高水準。我們預測毛利率範圍的中點為 62%。

Turning to the full year 2016, we expect revenue growth in the mid single digits. We continue to expect the overall PC market to be down in the high single digits, and we expect to achieve low double digit growth in our Data Center business. Gross margin for the full year 2016 is expected to be 62%, consistent with our prior outlook.

展望 2016 年全年，我們預期營收成長將達到中等個位數。我們仍然預期整體 PC 市場將出現高個位數的下滑，而我們的資料中心業務預計將實現低兩位數的成長。預計 2016 年全年毛利率為 62%，與我們先前的預期一致。

You can see our strategy playing out in our first-half results and our expectations for the second half. We expect above seasonal growth in the back half of the year led by strong growth in the Data Center, Internet of Things and Memory businesses. And for the year we expect that growth in those business will offset the PC market decline, and with the addition of the Programmable Solutions Group, will result in mid-single digit revenue growth.

從我們上半年的業績和對下半年的預期中，可以看到我們策略的實施。我們預計下半年將高於季節性的成長，這主要得益於資料中心、物聯網和記憶體業務的強勁成長。我們預計，今年這些業務的成長將抵消個人電腦市場的下滑，加上可程式解決方案集團的加入，將帶來中等個位數的收入成長。

Additionally, we're executing to our restructuring program, which allows us to increase investments in strategically important areas, generate financial returns for our owners, and build the foundation for future financial growth. With that, let me turn it back over to Mark.

此外，我們正在執行重組計劃，這使我們能夠增加對具有戰略意義領域的投資，為我們的所有者創造財務回報，並為未來的財務成長奠定基礎。那麼，現在讓我把麥克風交還給馬克。

Okay. Thank you, Brian and Stacy. Moving on now to the Q&A.

好的。謝謝布萊恩和史泰西。接下來進入問答環節。

(Caller Instructions)

（來電者指示）

Operator, please go ahead and introduce our first questioner.

接線員，請介紹我們的第一位提問者。

(Operator Instructions)

（操作說明）

Chris Danely, Citigroup.

克里斯丹尼利，花旗集團。

Thanks, guys. Just a question on the server expectations for the second half. What's given you the confidence that things are going to bounce back so nicely?

謝謝各位。請問一下伺服器對下半場的預期效能如何？是什麼讓你如此確信事情會迅速好轉？

Sure. I will start and then Stacy can add. This is Brian, Chris.

當然。我先開始，然後斯泰西可以補充。這是布萊恩，克里斯。

I think it's really a mix of a couple of things. One, we saw in the second quarter, and we project out into the second half, a bit of stabilization of the enterprise side of the market. Enterprise side was down only about 1%, which is a bit more stable than it has been.

我認為這實際上是多種因素共同作用的結果。第一，我們在第二季看到，我們預計下半年，企業市場方面會趨於穩定。企業端僅下降了約 1%，比之前的情況穩定一些。

Second thing is we are ramping our Broadwell E server in the second half of the year. So we expect strong demand. And we typically see an ASP uplift as people buy up in the stock with the new server systems coming out. And we have customers signals that just indicate that there is a second-half seasonal buying patterns kicking in a bit as well.

第二件事是，我們將在今年下半年逐步擴大 Broadwell E 伺服器的規模。因此我們預計需求強勁。通常情況下，隨著新伺服器系統的推出，人們會大量購買股票，導致平均售價上漲。我們也收到一些客戶回饋，顯示下半年的季節性購買模式也開始顯現。

Those three things are the second-half keys. If you take a look at a broader view of this, just overall our view of the Data Center and really the cloud continues to be that the cloud is going to continue to expand. It's going to be driven by the many, many machines that connect to the cloud that drive orders of magnitudes more data than what the average human creates today, and that's getting to the cloud. So there's kind of the short versus the longer-term point of view.

這三件事是下半場的關鍵。從更廣闊的角度來看，我們對資料中心乃至整個雲端運算的看法仍然是，雲端運算將繼續擴張。這將由連接到雲端的眾多機器驅動，這些機器產生的資料量比普通人今天產生的資料量要多幾個數量級，而這些資料最終都會上傳到雲端。所以這裡存在短期視角和長期視角之分。

Perfect.

完美的。

And for my follow-up, you mentioned you started shipping the 7360. Was that material to Q2 or will it be material to the second half? And any comments on profitability there?

我還有一個後續問題，您提到您已經開始出貨 7360 了。那對第二季有實質影響嗎？還是對下半年有實質影響？關於獲利能力方面，您有什麼看法？

Yes. So I'm not going to talk specifically about the 7360, because our policy is let our customers announce any design wins that they want to announce when they want to announce them.

是的。所以我不會具體談論 7360，因為我們的政策是讓客戶在他們想宣布的時候宣布任何他們想宣布的設計中標。

In terms of the overall impact on financials, when I look at the second half, you will note that we have an above seasonal growth rate in there. The biggest driver of that is what Brian just talked about in the Data Center. So that's kind of the biggest driver.

從整體財務影響來看，當我觀察下半年時，你會注意到我們的成長率高於季節性水準。造成這種情況的最大原因就是布萊恩剛才在資料中心談到的內容。所以這算是最大的驅動因素。

We were kind of below the average annual growth rate in the first half. We expect to be above that low double digits in the back half driven by the three things he talked about that. But in particularly the cloud buying patterns that we've identified with some of those large customers.

上半年我們的年增長率略低於平均。我們預計下半季的勝率將超過兩位數，這主要得益於他提到的三件事。但尤其值得注意的是，我們已經發現一些大客戶的雲端購買模式。

And then behind that we see an improvement in revenue in Memory and an improvement in revenue in IoT. So those are the big drivers as we go into the back half.

此外，我們也看到記憶體業務的收入有所成長，物聯網業務的收入也有所成長。所以，這些就是我們進入下半程時的主要驅動因素。

Thanks, guys.

謝謝各位。

John Pitzer, Credit Suisse.

瑞士信貸的約翰‧皮策。

God afternoon, guys. Thanks for letting me ask the question.

下午好，各位。謝謝您允許我提問。

Stacy, you did a nice job relative to the full-year guidance, kind of giving us your expectation for PC demand for the year. I'm just kind of curious as you look into the third quarter, the guide is sort of the high end of normal seasonal, as you talked about. How would you characterize kind of your view of the PC business going into Q3? And to the extent that it's still a subdued view, is this really confidence in Data Center, or what other parts of the business would drive above seasonal -- or high end of seasonal, sorry?

Stacy，你對全年的預測做得很好，大致反映了你對今年個人電腦需求的預期。我只是有點好奇，當你展望第三季時，正如你所說，這份指南似乎處於正常季節性預測的高端。您如何看待第三季個人電腦產業的前景？如果這種觀點仍然較為低迷，那麼這真的是對資料中心的信心，還是對業務其他方面的信心，才能推動業務超越季節性波動——或者說，超越季節性波動的高端部分？

John, how about if I start on just the view of the PC, especially into the third quarter, and then Stacy can get into the where is the above seasonal numbers coming from? I think if you look at the second half, we already said that Q2 ended up being a little bit better than what we had anticipated. And we had built the year at the high single digits. And if you take a look at Q2, it ended up coming at kind of the mid-single digit decline.

約翰，不如我先從個人電腦的角度出發，特別是第三季的情況，然後史泰西可以來探討上述季節性資料是如何產生的？我認為，如果你看一下下半年的情況，我們已經說過，第二季的最終結果比我們預期的要好一些。我們原本預計今年的成長率將達到個位數。如果你看第二季度，你會發現最終出現了中等個位數的下滑。

We've tried to be relatively cautious as we look out into the rest of this year and built the year and the forecast around that high single digit number set for decline of the PC. We are carrying momentum out of Q2. So there's still data that needs to be collected on how it looks. But right now we have maintained our cautious view of the high single digits.

展望今年剩餘時間，我們一直盡量保持相對謹慎的態度，並圍繞個人電腦銷量預計下降的個位數高位來製定今年的計劃和預測。我們延續了第二季度的良好勢頭。所以，還需要收集一些數據來了解它的外觀。但目前我們仍然對個位數高位持謹慎態度。

So just to translate that into seasonality against the backdrop of what Brian just said, which is high single digit decline in the PC business, we're expecting that to play out more or less seasonally, John. We tend to do a little bit better than that because of mix in ASP, but from a unit standpoint should be fairly seasonal. And then the driver is what I just talked about.

所以，約翰，為了把這種情況轉化成季節性因素，並結合佈萊恩剛才所說的個人電腦業務出現高個位數下滑的背景下，我們預計這種情況或多或少會呈現出季節性特徵。由於平均售價 (ASP) 的組合，我們通常能做得比這好一些，但從單位價格來看，應該具有相當強的季節性。然後就是我剛才提到的司機問題。

The Data Center growth rate as we move into the back half should be significantly higher than what we saw in the first half based on stabilization in enterprise, what we see with the cloud customers. And then some ASP uplift as we ramp Broadwell server -- 14-nanometer Broadwell servers into the product mix.

隨著企業市場的穩定以及雲端客戶的出現，資料中心在下半年的成長率應該會比上半年高得多。隨著我們將 Broadwell 伺服器（14 奈米 Broadwell 伺服器）逐步納入產品組合，平均售價 (ASP) 也將有所提升。

That's helpful, guys. Maybe for my follow-up, just looking at the Memory business. As you guys characterize, tough quarter in the June quarter, you analyze the operating loss, it's a fairly large number.

這很有幫助，夥計們。或許我的後續工作就是關註一下記憶體業務。正如你們所描述的，6 月的季度非常艱難，你們分析了一下營業虧損，虧損額相當大。

I'm just kind of curious, have startup cost there peaked? Did we have another couple of quarters of startup costs going up in Memory? And I guess more importantly, as Dalion ramps and as you think about Cross Point, how should we think about your profitability goals longer term and what the fall-through on that business looks like as revenue does start to accelerate?

我只是有點好奇，那裡的啟動成本是否已經達到高峰了？記憶體方面的啟動成本是否還會再增加幾季？更重要的是，隨著 Dalion 的發展壯大，以及您在考慮 Cross Point 時，我們應該如何看待您的長期盈利目標，以及當收入開始加速增長時，該業務的失敗會是什麼樣子？

There's a short-term and a long-term component to this. In the short term, as I think about the second half, in rough math I would expect a consistent loss in the second half to what we saw in the first half. I think startup costs will be slightly higher.

這件事既有短期因素，也有長期因素。短期來看，就下半場而言，粗略估計，下半場的成績會比上半場持續下滑。我認為啟動成本會略高一些。

We will see the first production cost play through on 3-D Cross Point, which as you know from watching us over the year, those first production costs tend to be fairly high in any factory when you're starting it up. Offset by the underlying existing NAND business, I think gets a bit better as we go into the back half. So that's the short-term answer.

我們將看到 3-D Cross Point 的首批生產成本發揮作用，正如您過去一年來觀察我們時所了解到的，任何工廠在啟動初期，首批生產成本往往都相當高。考慮到現有 NAND 業務的良好表現，我認為下半年情況會有所改善。這就是短期解決方案。

To your longer-term question, and I will turn this over to Brian to talk about the technology, but I think the combination of 3-D NAND and the cost structure we're going to achieve, and then the disruptive nature of 4-D Cross Point, we should have a very good value proposition and a very good overall profit position for the business.

關於您提出的長期問題，我將把這個問題交給 Brian 來談談技術方面，但我認為，3D NAND 和我們將要實現的成本結構相結合，再加上 4D Cross Point 的顛覆性特性，我們應該能夠為公司帶來非常好的價值主張和非常好的整體盈利能力。

John, I would just echo was Stacy said. We're just now starting to ramp our 3-D NAND. So as we go through this back half of this year and into next year, it's really starting to ramp up.

約翰，我只想附和史泰西的話。我們現在才剛開始大規模生產 3D NAND。所以，隨著今年下半年進入明年，情況真的開始加速發展了。

We think large cost advantages and good performance position there. And as we said, 3-D Cross Point SSDs start to ship at the end of this year. 3-D Cross Point and DIMMs next year.

我們認為那裡具有巨大的成本優勢和良好的性能地位。正如我們所說，3D Cross Point SSD 將於今年年底開始出貨。明年將推出 3D 交叉點和 DIMM。

And so these investments that we are making this year, which we have talked about, are really playing forward those two technologies. So I'm still very bullish on the long-term prospects. The units and the gigabytes continue to grow.

因此，我們今年進行的這些投資，正如我們之前討論過的，確實推動了這兩項技術的發展。所以我仍然非常看好其長期前景。銷售量和容量（以千兆位元組為單位）持續成長。

Our cost structure gets better and better as we go through the back half and into next year. And then 3-D Cross Point, as we've said, will really, in our minds, change the whole memory storage architecture.

隨著我們進入下半年並進入明年，我們的成本結構會越來越好。正如我們所說，3D Cross Point 將會真正改變整個記憶體儲存架構。

Thank you.

謝謝。

Joe Moore, Morgan Stanley.

喬摩爾，摩根士丹利。

Great. Thank you so much.

偉大的。太感謝了。

I wonder if you could talk about, first the Data Center, the growth, your mid-single digit growth for about three consecutive quarters. And I know you had higher expectations for that a few quarters ago. Can you talk about, is that entirely an enterprise phenomenon, or is that a timing issue around cloud? Just how should we think about the last few quarters of DCG?

我想請您先談談資料中心，談談成長情況，以及您連續三個季度維持的個位數中等成長率。我知道幾個季度前你對此抱有更高的期望。您能否談談，這完全是企業特有的現象，還是與雲端運算發展時機有關的問題？我們該如何看待DCG最近幾季的表現？

So overall relative to expectations we had at the beginning of the year, let's say, it's primarily enterprise driven. And then there's what we commonly use as lumpiness quarter-on-quarter.

所以總的來說，與我們年初的預期相比，它主要是由企業驅動的。然後還有我們通常所說的季度間波動。

So to how you asked the question, we actually weren't surprised by the Q2 results. In fact, they came in right in line, actually just a hair above what our internal forecast was. We have, I think, pretty good insight into the large cloud customers. And so we had some good insight into the buying patterns as those customers went from Q1 to Q2.

至於你提出的問題，我們其實對第二季的結果並不感到意外。事實上，他們的表現完全符合預期，甚至略高於我們的內部預測。我認為，我們對大型雲端客戶有相當深入的了解。因此，我們對這些客戶從第一季到第二季的購買模式有了一些很好的了解。

And now as we look at the back half we see several purchasing cycles kicking in for some of the large guys. So we expect that the cloud piece will accelerate as we get into the back half.

現在我們來看看下半年，可以看到一些大型企業正在經歷幾個採購週期。因此我們預計，隨著比賽進入後半程，雲量將會加速增加。

Great. That's helpful. Thank you.

偉大的。那很有幫助。謝謝。

And then with regards to the balance sheet, I noticed both day sales outstanding and days of inventory bumped up a little bit. And I hadn't expected that. Can you just talk about what drove that?

另外，關於資產負債表，我注意到應收帳款週轉天數和存貨週轉天數都略有上升。我沒想到會這樣。您能談談是什麼原因促成了這件事嗎？

Yes. Those are two different things.

是的。這是兩碼事。

I'll just start with the easy one, days sales outstanding. I'm not seeing anything unusual there. That's just the amount of net billings at the end of the quarter. The average day paid and all of that still looks really healthy. So I'm not seeing anything unusual there.

我先從最簡單的說起，應收帳款週轉天數。我沒發現什麼異常之處。這只是季度末的淨帳單金額。平均每日工資水平等等各項指標看起來仍然非常健康。所以我覺得沒什麼不尋常的。

On the inventory side, as I talked to you last quarter, we ended Q1 higher than where I wanted to be. Our yields got better in Q1. Frankly, they got a lot better in Q2 as well. And we under-shipped a little bit in Q1 relative to the units that we were expecting.

庫存方面，正如我上個季度和你談過的那樣，我們第一季末的庫存高於我的預期。第一季我們的收益率有所提高。坦白說，他們在第二季也進步了很多。第一季我們的出貨量比預期略低。

So we took some actions in the second quarter to start bringing inventory levels down. What you see inside of inventory, it was kind of flattish, right in line with what we expected Q1 to Q2. It was a remixing.

因此，我們在第二季採取了一些措施，開始降低庫存水準。從庫存情況來看，情況比較平穩，與我們對第一季到第二季的預期基本一致。這是一首混音作品。

So you see some more expensive server parts and some skylight parts going up, and then you see some of the older generation CPUs going down. And as we get into the back half we would expect inventory to click down, and be down pretty meaningfully by the time we get to Q4.

所以你會看到一些更昂貴的伺服器零件和一些天窗零件的價格上漲，然後你會看到一些老一代的 CPU 的價格下降。隨著下半年的到來，我們預期庫存會下降，到第四季時，庫存下降幅度會相當大。

Great. Thanks so much.

偉大的。非常感謝。

Thanks, Joe.

謝謝你，喬。

Harlan Sur, JPMorgan.

哈蘭‧蘇爾，摩根大通。

Good afternoon, and thanks for taking my question. PC gaming has been a bright spot for the team with growth in the double digits year-over-year range for the past number of quarters. Your desktop ASPs were up again in Q2, maybe due to the strength here.

下午好，感謝您回答我的問題。PC 遊戲一直是該團隊的一大亮點，在過去的幾個季度裡，其同比增長率一直保持在兩位數。第二季您的桌面端ASP又會上升，可能是因為這方面的強勁表現。

Seems like the graphics guys are rolling out some new products. There appears to be a good pipeline of new games for the second half. So I guess the question is, did the PC gaming segment continue to drive double digits growth for the team in Q2? And how do you see that trending into the second half?

看來圖形設計團隊正在推出一些新產品。下半年似乎會有不少新遊戲推出。所以我想問的是，PC遊戲業務在第二季是否繼續為團隊帶來兩位數的成長？你認為下半年這種趨勢會如何發展？

Sure. If you take a look at it, there is 3-ish, maybe 4-ish, major segments of the PC that did better and continue to do better than the rest of the segment and overall. Laptops, mobile PCs continue to do better. They did better in the second quarter. Two-in-one devices specifically do -- are doing very well and continue to grow in double digits.

當然。如果你仔細觀察一下，你會發現個人電腦領域有大約 3 個，或許 4 個主要細分市場表現得比其他細分市場和整體市場都要好，並且這種好勢頭還在持續。筆記型電腦和行動電腦的銷售持續成長。他們在第二節表現得更好。二合一設備尤其如此——它們表現得非常出色，並且繼續以兩位數的速度成長。

And then as you said, we often call it enthusiast gaming. You see our case SKUs in there. And then you saw us also announced the X SKU, which is our new 10-core system that has been selling much, much better than even we anticipated. And so yes, gaming and enthusiast continues to grow at a double digit rate.

正如你所說，我們通常稱之為發燒友遊戲。您可以在那裡看到我們的產品 SKU。然後，您也看到了我們發布了 X SKU，這是我們新的 10 核系統，其銷售量遠遠超出我們的預期。所以，沒錯，遊戲和遊戲愛好者群繼續以兩位數的速度成長。

Great. Thanks for the insights there.

偉大的。謝謝你的見解。

And then on the deceleration in the IoT business in June, you talked about an inventory burn. Sorry if I missed this, but what vertical is that focused on? And does the team expect reacceleration on a year-over-year basis as you move into the second half of the year? And if so, what verticals are going to be driving the growth?

然後，在談到 6 月物聯網業務成長放緩時，你提到了庫存消耗。如果我錯過了什麼，請見諒，但這家公司主要關注哪個領域？進入下半年，團隊是否預期業績將較去年同期加速成長？如果真是如此，哪些垂直領域將成為成長的主要驅動力？

Let me take the revenue question and I will let Brian take the, what we see in the verticals part. It was not one vertical.

讓我來回答營收方面的問題，至於垂直領域的情況，就讓布萊恩來回答。它不是一條垂直線。

If you just look at it, I think our customers got out a little ahead of their skis in the first quarter. If you remember, I think we had a 21% or 22% year-on-year growth rate in Q1. There was a little more inventory out there than we anticipated, and that took some of the -- that was a bit of a headwind as we started Q2.

如果只看數據，我認為我們的客戶在第一季有點操之過急了。如果你還記得的話，我認為我們第一季的年成長率為 21% 或 22%。市場上的庫存比我們預期的要多一些，這給我們第二季的開始帶來了一些不利影響。

To your question on the back half, we do expect to reacceleration. I had said at the investor meeting that we expect double digit growth in excess of what we had achieved last year. We still expect that. We had a strong Q1, inventory burn in Q2, we expected a strong Q3 and Q4.

關於您提出的後半程的問題，我們預計會再次加速。我在投資人會議上說過，我們預計今年的成長將達到兩位數，比去年實現的成長幅度更大。我們仍然抱持這樣的預期。第一季業績強勁，第二季庫存消耗正常，我們預期第三季和第四季業績也會強勁。

From a which verticals, the verticals that have been the strongest growing for us, especially in recent, has been industrial and in the security video type applications. Those have been the two real growth.

從各個垂直領域來看，我們成長最強勁的垂直領域，尤其是最近成長最快的領域，是工業領域和安防視訊應用領域。這是真正的兩項增長。

We have a lot of, I'll call it longer-term growth vectors. Retail's a longer-term growth factor. And then you saw, as we mentioned in the call, automotive ADAS section, like the announcement with BMW, some other programs in that space as well.

我們有很多，我稱之為長期成長動力。零售業是長期成長因素。然後，正如我們在電話會議中提到的，汽車ADAS領域，例如與寶馬的合作公告，以及該領域的其他一些項目。

Great. Thank you.

偉大的。謝謝。

Stacy Rasgon, Bernstein Research.

Stacy Rasgon，伯恩斯坦研究公司。

Hi, guys. Thanks for taking my question.

嗨，大家好。謝謝您回答我的問題。

I just wanted to verify, on the DCG growth target into the back half, it sounds like you need enterprise to keep getting better into the second half as well as for the cloud and comm side of DCG to significantly re-accelerate to get there. Cloud was up 9% year-over-year. It's good, but that's a significant deceleration. Can you sort of give us a feeling for what you need for enterprise into the back half and what drove the deceleration in the high growth parts of this business into Q2?

我只是想確認一下，關於 DCG 下半年的成長目標，聽起來你們需要企業業務在下半年繼續好轉，同時 DCG 的雲端和通訊業務也要大幅加速成長才能實現目標。雲端業務年增 9%。這固然不錯，但這確實是一次顯著的減速。您能否大致談談您對下半年企業發展的需求，以及是什麼導致了第二季高成長業務板塊增速放緩？

Yes. I would say -- I'd characterize enterprise in the back half consistent with what we saw in Q2. If it stabilizes at that rate, that gives us the ability to grow to the levels that we are projecting.

是的。我認為－下半年企業的發展狀況與我們在第二季看到的情況一致。如果能以這種速度穩定下來，我們就有能力達到我們預期的成長水準。

And then for the cloud, yes, you are right. It's what I said earlier. We actually forecasted a pause in purchasing based on what we knew of the customer -- the big cloud players' ordering patterns. And based on the signals we are seeing from them, we do expect a reacceleration in the back half to something more consistent with what we were seeing through the last couple of years.

至於雲，是的，你說得對。我之前就是這麼說的。根據我們對客戶的了解——大型雲端服務商的訂購模式——我們實際上預測了購買暫停的情況。根據我們從他們那裡看到的信號，我們預計下半年經濟將再次加速成長，並達到與過去幾年我們看到的更一致的水平。

So what gives you confidence in enterprise will continue to stabilize and that what we saw in Q1 is not a one-quarter blip, given it's been down pretty meaningfully for the last few years pretty consistently?

鑑於過去幾年企業經濟持續大幅下滑，是什麼讓您相信企業經濟將繼續趨於穩定，並且我們在第一季看到的波動並非僅僅是一個季度的偶然現象？

It's what we saw in Q2.

這正是我們在第二季看到的情況。

Q2, I mean.

我是說Q2。

We saw it down slightly. And again, it's just what we see of the big enterprise customers' signals to us in terms of what they want to purchase.

我們看到它略微下降了一些。再說一遍，這只是我們從大型企業客戶那裡得到的訊號，他們想購買什麼。

Thanks, Stacy.

謝謝你，史黛西。

Ross Seymore, Deutsche Bank.

羅斯·西摩，德意志銀行。

Hi, guys. Thanks for let me ask a question.

嗨，大家好。謝謝允許我提問。

Given that dynamic in the cloud on the enterprise side within DCG, do you still expect a crossover in the percentage of revenues that those two generate in the back half of this year? Or is it pulled forward a little bit, or pushed out, given the dynamics that you've described so far?

鑑於 DCG 企業雲端業務的這種動態變化，您是否仍預期今年下半年這兩項業務的營收佔比會重疊？或者，根據你目前描述的動態情況，它是被向前拉了一點，還是被向外推了一點？

Sorry crossover from what to what, Ross?

抱歉，羅斯，剛才說的是什麼跨界？

When you said, I believe at your last analyst meeting you talk about the cloud revenue, the percentage of DCG would be somewhere in the mid-30%s and that would cross over the enterprise-generated revenue in that. And that was therefore viewed as a point of acceleration for the entire group. Wondering, given the slower growth year to date in the business, if that crossover is going to be achieved in the time you expected?

我相信您在上次分析師會議上談到了雲端收入，當時資料中心成長 (DCG) 的百分比應該在 30% 左右，這將超過企業產生的收入。因此，這被視為整個團隊的加速發展點。鑑於今年迄今為止業務成長放緩，我想知道能否在預期的時間內實現這一目標？

I will be honest. I haven't looked at the data from that lens. But what I'd say, let me just take you back to the answer that I gave, I think it was to Joe's question earlier.

我會實話實說。我還沒有查看過那個鏡頭的數據。但我想說的是，讓我回到我之前對喬的問題的回答。

That if you look to the expectations we had at the beginning of the year, the enterprise is a bit weaker than we thought overall for the year. And I think cloud will be in line with what we thought. So my guess is that still true. Which quarter it happens maybe a jump ball, but my guess is this still true.

如果回顧我們年初的預期，就會發現公司全年的整體業績比我們預想的要弱一些。我認為雲端服務的發展將符合我們的預期。所以我猜想情況仍然如此。這事發生在哪一節可能得看運氣，但我猜這個說法還是成立。

But I would like the opportunity to actually go look at the data and I can give you a crisper answer next time we talk.

但我希望有機會實際查看數據，下次我們談話時，我可以給你一個更明確的答案。

Okay. As my follow-up question, sticking with DCG then, is on the gross margin side. It sounds like you are expecting some pretty significant growth, not only in the unit side of the equation in DCG but also in the ASP side.

好的。那麼，我的後續問題，還是以 DCG 為例，是關於毛利率方面的問題。聽起來您預計不僅在 DCG 的單位銷售額方面，而且在 ASP 方面，都會有相當大的成長。

And then you also talked about some of the ASP benefits that might happen in CCG, at least in the PC portion of it. If I put that all together, I'm a little surprised that either mix or ASPs, neither of those are mentioned in your gross margin reconciliation for it to go to 62% in the third quarter. Can you talk a little bit about how those dynamics fit into your gross margin?

然後你也談到了CCG中可能出現的ASP優勢，至少在PC部分是如此。綜合所有因素來看，我對毛利率在第三季達到 62% 感到有些驚訝，無論是產品組合還是平均售價，這兩項都沒有在你的毛利率調整表中提及。您能否談談這些因素如何影響您的毛利率？

Sure. So first let me start with your question on Data Center. There's a lot in there.

當然。首先，讓我先回答您關於資料中心的問題。裡面內容很多。

So I do expect an operating margin improvement in the Data Center as we work through this year. I think we were kind of around mid-40%s in the second quarter, and historical ranges been closer to 50%, as I expected, that ticks up some as we move into the back half. The big driver there is costs.

因此，我預計隨著我們今年的工作進展，資料中心的營運利潤率將會提高。我認為第二季我們的成長率大概在 40% 左右，而歷史平均值接近 50%，正如我預期的那樣，隨著下半年的到來，這個數字還會略有上升。主要驅動因素是成本。

So the early production on the Broadwell server is fairly expensive. Costs come down as we get into the back half. And as you said, we do expect some ASP uplift in the back half.

因此，Broadwell 伺服器的早期生產成本相當高。隨著賽季進入後半程，成本會下降。正如你所說，我們預計下半年平均售價會有所提升。

Overall for the Company what we're seeing, I'll use Q3 as the anchor point, we are seeing some good news in Q3 associated with higher volumes. And then the big offset there is we are seeing 10-nanometer startup costs going up pretty significantly in the back half. So that may be the piece that you are missing in the equation in Q3.

總體而言，就公司而言，我們目前看到的是，以第三季為基準，我們在第三季看到了一些與銷售成長相關的好消息。而最大的不利因素是，我們看到 10 奈米技術的啟動成本在下半年大幅上升。所以，這可能就是你在問題 3 的等式中缺少的關鍵部分。

That continues into Q4, by the way. We see a little bit more startup costs. If you do your algebra, you are probably coming up with a gross margin for Q4 that's about 62%. So think of that as some good things happen, but we have again an increase in startup costs and we have some of the Dalion costs with the first production of 3-D Cross Point that also kick in a bit more in Q4.

順便一提，這種情況會持續到第四季。我們看到啟動成本略高一些。如果你進行代數運算，你可能會得出第四季的毛利率約為 62%。所以，你可以把這看作是一些好事發生了，但是我們的啟動成本再次增加，而且隨著 3-D Cross Point 的首次生產，Dalion 的一些成本也會在第四季度進一步增加。

Great. Thank you.

偉大的。謝謝。

You're welcome.

不客氣。

Chris Caso, CLSA.

Chris Caso，CLSA。

Just a clarification on some of your earlier comments on inventory and PC. You talked about the customers taking down the inventory a little bit less than you had expected in Q2. Can you clarify why they chose to do that? And I guess with the inventory levels right now, where do they stand relative to where you would expect them to be into the third quarter?

關於您之前對庫存和電腦的一些評論，我這裡有一些澄清。您提到第二季客戶減少的庫存量比您預期的要少一些。你能解釋一下他們為什麼選擇這樣做嗎？那麼，就目前的庫存水平而言，它們與您預期在第三季度達到的水平相比如何？

Overall we continue to see inventory levels as being very healthy. I think that the PC -- the worldwide PC supply chain has moved towards a stance of being fairly lean and fairly cautious, and we see that continuing.

整體而言，我們認為庫存水準依然非常健康。我認為，全球個人電腦供應鏈已經朝著精簡謹慎的方向發展，我們看到這種趨勢還會持續下去。

You would typically see an inventory burn in the second quarter. It was little bit less of an inventory burn then what we expected. I think it goes back to Brian's comments that he made at the beginning of the call that from their perspective the PC market was a little better in Q2. So I think they probably just brought down inventory levels a little bit less.

通常情況下，第二季會出現庫存消耗。庫存消耗量比我們預期的要少一些。我認為這要追溯到布萊恩在電話會議開始時發表的評論，即從他們的角度來看，第二季的個人電腦市場情況略有好轉。所以我認為他們可能只是略微減少了庫存水準。

Okay. As a follow-on to that, maybe you can clarify what you consider to be normal PC seasonality in the third quarter, because I think that's been changing over the past several years.

好的。作為後續，您能否澄清一下您認為第三季度正常的個人電腦季節性波動是什麼，因為我認為這種情況在過去幾年裡一直在變化。

Last year the build into the third quarter was a little stronger. Obviously there were some product launches there. How do you characterize the build this year relative to what we have seen last year and the year before?

去年第三季的開局階段表現更強勁一些。顯然，那裡有一些產品發布會。與去年和前年相比，您如何評價今年的建築業發展？

I would say for the Company you would expect to see the seasonality, a revenue seasonality for us that's in the high single digits as we go from Q2 to Q3. Our guide is a little higher than that for the reasons that we've been talking about. PC market is probably in line with that, maybe just an inch higher in terms of the overall PC channel.

我認為，對於公司而言，你會預期看到季節性變化，我們的營收季節性變化在從第二季到第三季時達到個位數高點。由於我們剛才討論的原因，我們的指導價會略高一些。PC市場的情況可能與此相符，就整個PC通路而言，或許略高一些。

Great. Thank you.

偉大的。謝謝。

Matt Ramsay, Canaccord Genuity.

Matt Ramsay，Canaccord Genuity。

Yes. Thank you very much. Good afternoon. Thanks for taking my question.

是的。非常感謝。午安.謝謝您回答我的問題。

I guess it's kind of a follow-on to the DCG question that Ross had brought up in terms of margins. Does the DCG business, is obviously going to diversify itself some going forward with some of the new products that you're introducing and the networking business taking off.

我想這算是對羅斯先前提出的關於利潤率的 DCG 問題的後續探討。DCG 業務顯然會隨著你們推出的一些新產品和網路業務的蓬勃發展而實現多元化發展。

The operating margin percentage is down fairly sharply year-over-year. And I would expect that to ramp back up some as revenue reaccelerates, but maybe Stacy you could talk about what the long-term margin structure looks like from an operating margin perspective in DCG as the business diversified some? Thanks.

營業利益率較去年同期大幅下降。我預計隨著收入重新加速成長，利潤率也會回升。 Stacy，或許你可以談談隨著業務多元化，DCG從營業利潤率的角度來看，其長期利潤率結構是什麼樣的？謝謝。

Sure. So we'll talk about that in more depth at the investor meeting, but I'll give you some off-the-cuff comments here.

當然。所以我們會在投資人會議上更深入地討論這個問題，但我在這裡先簡單說幾句。

First, to just put it in perspective, the operating margin percent decline that we saw in Q2 had nothing to do with the new products, or the new products weren't driving it. It was the 14-nanometer cost of Broadwell server. And we get in the back half we're going to see an ASP impact associated with that because we think that the performance of that product brings -- enables customers to get a better value proposition by buying a richer mix. So that's why I'm pretty confident we get in the back half, we see the margin snapping back towards that 50% that we've articulated as our long-term goal.

首先，為了更清楚說明問題，我們在第二季看到的營業利潤率下降與新產品無關，或者說新產品並不是造成利潤率下降的原因。這是 Broadwell 伺服器採用 14 奈米製程的成本。到了下半年，我們將看到平均售價受到影響，因為我們認為該產品的性能提升——使客戶能夠透過購買更豐富的產品組合獲得更好的價值主張。所以，我很有信心，到了下半季，我們的利潤率會迅速回升到我們設定的長期目標——50%。

We'll talk more about the mix of products and whatnot at the investor meeting. But the one thing I'd point you to is remember, something like networking, which is at atom-based server product that's going in. While it does have a lower ASP than the average within DCG, it has an ASP that's actually been going up and it has a very different cost structure than a Xeon does. So I won't just immediately assume that because it's a lower price segment of the market that it's a margin-hindered segment of the market because that's not the case.

我們將在投資者會議上詳細討論產品組合等問題。但我只想提醒你一點，記住，像網路這樣的功能，是即將推出的基於 Atom 的伺服器產品。雖然它的平均售價低於 DCG 的平均水平，但實際上它的平均售價一直在上漲，而且它的成本結構與 Xeon 完全不同。所以，我不會因為它是價格較低的市場區隔而立即斷定它是利潤率受限的市場區隔領域，因為事實並非如此。

Great, thank you. That's very helpful.

太好了，謝謝。那很有幫助。

And then I guess to follow up on, that sticking on margins, maybe you could talk a little bit about how adding the third chip on 14-nanometer may affect margins going into 2017 in the PC business to offset some of the 10-nanometer ramp costs you had talked about? I think it's a little bit of a different dynamic than we have seen with the business traditionally with the tick-tock approach.

然後我想繼續探討利潤率的問題，您能否談談在 14 奈米製程上增加第三顆晶片可能會如何影響 2017 年 PC 業務的利潤率，以抵消您之前提到的 10 奈米製程的爬坡成本？我認為這與我們以往在商業領域看到的「滴答滴答」式的運作方式略有不同。

So any sort of broader comments you could give there about margins would be really helpful. Appreciate it. Thanks.

所以，如果您能就頁邊距方面提出任何更廣泛的意見，都將非常有幫助。謝謝。謝謝。

Let me take the margin side and then I will let Brian come in over the top to talk a little bit about the roadmap and how we think about that from the customer's perspective.

讓我先談談利潤率方面的問題，然後我會讓布萊恩從客戶的角度來談談路線圖以及我們是如何考慮這個問題的。

From a -- first off, we haven't forecast 2017 margins. So we will give you the first glimpse of that at the investor meeting and then we put a formal stake in the ground when we get to next January.

首先，我們尚未預測 2017 年的利潤率。所以，我們將在投資者會議上首次向大家展示這一點，然後在明年一月正式確定。

But I would say that there is nothing that I am seeing in the overall roadmap that for me is a significant headwind as we go into 2017. So we will give you a lot more insight in that in a few months. But I am not seeing anything that has me worried as we go into 2017.

但我認為，從整體路線圖來看，在進入 2017 年之際，並沒有出現任何對我而言的重大阻力。所以幾個月後，我們會為您提供更多這方面的資訊。但就2017年而言，我並沒有看到任何令我擔憂的事情。

I guess what I would talk about is Kaby Lake. One of the things we have learned on 14-nanometers is how to make meaningful performance and improvements, both in the silicon and then with the silicon combined with the architecture. So we said we already started shipping Kaby Lake to our customers and OEMs. We're seeing meaningful performance across all of the various SKUs of Kaby Lake relative to Skylight. Kaby Lake's built off a Skylight core.

我想談談卡比湖。我們在 14 奈米製程中學到的一件事是如何實現有意義的性能提升，無論是在矽晶片上，還是將矽晶片與架構結合。所以我們說我們已經開始向我們的客戶和OEM廠商出貨Kaby Lake了。我們看到 Kaby Lake 各個 SKU 的性能都比 Skylight 有顯著提升。Kaby Lake 是以 Skylight 為核心建造的。

And as a result, the die size does not significantly grow. So you don't see -- there's no driver in the silicon itself to shift the margin structure of this product. We're able to get the performance and feature enhancements with relatively small silicon increases but good improvement on the silicon -- raw silicon technology itself.

因此，模具尺寸不會顯著增加。所以你看——矽晶片本身並沒有驅動力來改變該產品的邊際結構。我們能夠透過相對較小的矽片增加來獲得性能和功能的增強，同時對矽片本身（原始矽技術）​​進行很好的改進。

So there's not an intrinsic driver that should say, die size got twice as big so margins are cut. There's nothing like that.

所以並沒有內在的驅動因素會導致這種情況：模具尺寸增加了一倍，利潤率就下降了。根本沒有那樣的事。

And it comes in on a process technology that's mature with healthy yields and healthy cost structures. So from that perspective you get a nice performance boost at a good cost structure.

而且，它採用的製程技術已經成熟，產量和成本結構都很健康。所以從這個角度來看，你可以以合理的成本獲得不錯的效能提升。

Thank you very much.

非常感謝。

Thanks, Matt.

謝謝你，馬特。

Romit Shah, Nomura Securities.

羅米特·沙阿，野村證券。

Thanks. Brian, I know that you remain cautious overall in the PC market. But when you look at some of the third-party data it definitely seems like North America was better. Asia, Latin America, a little mix, I'm wondering has your view, at least on a regional basis, changed at all?

謝謝。布萊恩，我知道你對個人電腦市場整體上仍然保持謹慎態度。但從一些第三方數據來看，北美的情況顯然更好。亞洲、拉丁美洲，還有一些其他地區，我想知道您的看法，至少從區域層面來看，是否有所改變？

So my regional view would say that certain of the -- some North America and Western Europe has been stronger for us for some period of time, and it continues to be the stronger segment for us. As you said, South America, Latin America continues to be weak.

因此，從區域角度來看，北美和西歐的部分地區在一段時間內對我們來說一直比較強勁，而且它仍然是我們比較強勁的市場。正如你所說，南美洲和拉丁美洲依然疲軟。

We see weakness in Asia, but it did get a little bit better than in the past. And that combined with North America were the two drivers that made Q2 perform better than what we'd modeled in our high single digits.

亞洲經濟疲軟，但比過去略有改善。再加上北美市場的因素，這兩大因素使得第二季業績超過了我們先前預測的個位數高成長。

And as I said, I'm being relatively cautious in this and making sure that we put an estimate out there that we are very comfortable with. And that's why we've gone with -- stuck with our high single digit view of the year.

正如我所說，我在這方面比較謹慎，確保我們給出的估算結果讓我們非常放心。這就是為什麼我們堅持今年的成長率將保持在個位數高位的原因。

The other thing that's been reported is that commercial models have seen some momentum. Windows 10 has been a catalyst. Your view on commercial enterprise, has that improved at all over the last 90 days?

另有報道稱，商業模式也呈現出一定的成長動能。Windows 10 起到了催化劑的作用。過去90天裡，您對商業企業的看法是否有改善？

Yes. And we are hearing that same thing from our customers. And as we go out and talk to CIOs, we are hearing the same thing.

是的。我們從客戶那裡也聽到了同樣的回饋。當我們與資訊長們交談時，我們也聽到了同樣的說法。

Those cycles, though, can sometimes take -- you will hear them, and then they sometimes can take some time to really kick in. So again, we kind of built that into the cautiousness of the second half and making sure that we know what we are going into the second half with.

不過，這些週期有時會發生——你會聽到它們，然後它們有時需要一些時間才能真正開始發揮作用。所以，我們再次將這種謹慎的態度融入下半場的策略中，確保我們知道下半場的情況。

But we are hearing similar things around the enterprise conversion. It's comfort with Windows 10, ability to make that transition, they're wanting to do it on new hardware.

但我們在企業轉型方面也聽到了類似的說法。他們熟悉 Windows 10，能夠順利過渡，並且希望在新硬體上進行操作。

Great. Thank you.

偉大的。謝謝。

C.J. Muse, Evercore ISI.

C.J. Muse，Evercore ISI。

Good afternoon. Thank you for taking my question. I guess first question on Cross Point.

午安.感謝您回答我的問題。我猜第一個問題是關於交叉點的。

You talked about stronger growth expectations looking over the next couple of years. Just curious if you could share what conversations you have had with customers, what use cases you've uncovered? And any thoughts in terms of sizing the market?

您提到未來幾年成長預期會更加強勁。我很好奇您能否分享您與客戶的對話內容，以及您發現的使用案例？關於市場規模，您有什麼想法嗎？

So we haven't really tried to -- we have pretty widespread guess times and models right now on sizing the market, because we are still really learning. We've actually started to ship some sample units to customers already to let them try out and start to learn. Those are to the big COG service providers, is mostly who we're sending those to.

所以我們還沒有真正嘗試過——目前我們在市場規模的估算方面有很多猜測和模型，因為我們仍然在學習。我們實際上已經開始向客戶寄送一些樣品機，讓他們試用並開始學習。這些郵件主要發給大型的COG服務提供者。

You're going to see it enter as SSDs. You'll see those SSDs, both enterprise-class SSDs and also commercial consumer type SSDs. We've demonstrated in several live demonstrations, anywhere from 5 to 7, 8, 9, 10 times improvement in performance, depending on the workload through those SSDs. So you're going to see those be the first implications.

你會看到它以固態硬碟（SSD）的形式出現。你會看到這些固態硬碟，既有企業級固態硬碟，也有商用消費級固態硬碟。我們在多次現場演示中證明，根據透過這些固態硬碟進行的工作負載的不同，效能可以提高 5 到 7、8、9、10 倍。所以你會看到這些是最初的影響。

When I think about where the big volume will come from, I think it will come in that DIMM form factor. You're going to see it in cloud applications, everything from machine learning, big data, anyplace where you have memory-intensive and where you can do in-memory applications. The 3-D Cross Point is going to be nicely configured for that. It allows you to bring large amounts of storage-like data into a memory-like performance. And that's the real key here.

當我思考大批量產品會從哪裡來時，我認為它們會以 DIMM 記憶體的形式出現。你會在雲端應用中看到它，從機器學習、大數據，到任何記憶體密集型應用和可以進行記憶體應用的地方。3D交叉點將為此進行良好的配置。它允許你將大量類似儲存的資料轉化為類似記憶體的效能。這才是真正的關鍵。

I also believe you will see it in consumer devices. You will see laptops and devices like that. Gaming machines, we think it will have gaming applications where you can preload in a cache-like environment the next level of your game. And so it loads almost instantly as you transition within the game.

我相信你也會在消費性電子產品中看到它。你會看到類似的筆記型電腦和設備。我們認為，遊戲機將擁有遊戲應用程序，您可以在類似快取的環境中預先載入遊戲的下一關。因此，當你在遊戲內切換場景時，它幾乎可以瞬間加載完成。

So there's going to be a variety of those. And actually the more we go and start to play with it, start to give it out to customers, the more types of applications and workloads we're finding that it can be used for.

所以會有各種各樣的這類產品。事實上，我們越是深入研究並開始將其提供給客戶，就越發現它可以用於更多類型的應用程式和工作負載。

That's very helpful. And I guess as a quick follow-up.

那很有幫助。我想快速補充一點。

Stacy, can you provide an update on your targeted capital structure here? And at what point with net leverage, net cash we should start to see more aggressive buybacks?

Stacy，你能提供一下你目標資本結構的最新進展嗎？那麼，當淨槓桿率和淨現金達到什麼水準時，我們應該開始看到更積極的股票回購計畫嗎？

Sure. As I communicated, I think at the investor meeting or in the last six months, our goal is to get back to net cash zero. And one point I had predicted that that would happen in the back half of this year.

當然。正如我在投資者會議或過去六個月所溝通的那樣，我們的目標是恢復淨現金為零。我曾預測，這種情況會在今年下半年發生。

The combination of business levels being lower from what we thought at the beginning of the year as well as some pretty significant restructuring charges will push that out. So that will happen sometime in 2017, although I do think we will make good progress towards net cash zero as we move into the back half. Today our net debt level is right around $5 billion. So we will take a big chunk out of that as we move into the back half.

業務水準低於我們年初的預期，再加上一些相當大的重組費用，這將導致專案延期。所以這將在 2017 年的某個時候發生，不過我認為隨著我們進入下半年，我們將在實現淨零現金目標方面取得良好進展。目前我們的淨債務水準約為50億美元。所以，進入後半程，我們將大幅減少這部分損失。

In terms of -- now that said, we're still generating excess free cash flow. You can see that even in the first half, even inclusive of the restructuring charges we did.

也就是說，我們目前仍在產生過剩的自由現金流。你可以看到，即使在上半年，即使算上我們所做的重組費用，情況也是如此。

And so you can see we did, I think $1.6 billion of buybacks in the first half. And we have a dividend yield that as of yesterday was about 3%. So I think you see us executing to the priorities that we had articulated.

所以你可以看到，我們在上半年進行了16億美元的股票回購。截至昨天，我們的股息殖利率約為3%。所以我認為，大家可以看到我們正在執行我們之前製定的優先事項。

Thanks, C.J. Operator, I think we have time for two more questions.

謝謝，C.J.接線員，我想我們還有時間再問兩個問題。

Vivek Arya, Bank of America.

Vivek Arya，美國銀行。

Thanks for taking my question. For my first one Brian, I am curious, there are expectations of Intel becoming successful with your 4G modems in the back half. And I'm curious, how's the longer-term visibility around sustaining growth in the business? And just the timing as to when you can bring those products from foundry to your [facets]?

謝謝您回答我的問題。Brian，我的第一個問題是，我很好奇，大家是否期望英特爾的 4G 數據機在下半年取得成功？我很好奇，企業能否長期維持成長？那麼，你們何時才能將這些產品從代工廠運送到你們的[生產環節]呢？

Sure. So let's just talk about modems.

當然。所以我們來聊聊調變解調器吧。

Really to stay on a leading edge modem, you need to have a yearly cadence of modem technology. And so we have just that, a yearly cadence laid out. We had the 7260 last year. We had the 7360 this year.

要真正使用最先進的數據機，你需要每年更新調變解調器技術。因此，我們就有了這樣的年度節奏。我們去年用的是7260型。我們今年有7360型飛機。

We have a series of modems out. We've got them built out and planned for the next several years.

我們已部署了一系列調變解調器。我們已經完成了建設，並製定了未來幾年的計劃。

We haven't publicly stated when we will bring it inside, but clearly we plan to. We will do that when the right point of intercepting the roadmap and getting the right performance off the 14-nanometers is required. Right now I am more concerned about getting the leading edge momentum going for us with the 7360 and then the follow-on in 2017, and really showing that we are a world-class modem company.

我們尚未公開說明何時將其引入室內，但顯然我們計劃這樣做。我們將在合適的時機介入路線圖，並從 14 奈米製程獲得合適的性能時這樣做。現在我更關心的是如何憑藉 7360 以及 2017 年的後續產品，為我們贏得領先的發展勢頭，真正證明我們是一家世界一流的調製解調器公司。

As my follow-up, staying on the BCG team, are you still comfortable this can be a double digit growth business over the longer term? And I guess as part of that, what role does competition play into it with all the recent noise around [Sofbang and Bangar] presumably putting more resources into it. I understand there are no near-term implications, but just longer term how do you think about growth and competition in DCG? Thank you.

作為我的後續問題，如果您繼續留在 BCG 團隊，您是否仍然認為從長遠來看，這可以是一個兩位數成長的業務？我想，作為其中的一部分，隨著最近圍繞 [Sofbang 和 Bangar] 的各種傳聞，以及他們可能投入更多資源，競爭在其中扮演著怎樣的角色呢？我知道短期內不會有任何影響，但從長遠來看，您如何看待DCG的成長和競爭？謝謝。

Sure. So let me try and talk about why I am so confident in growth. We could talk about competition. And we'll see if that does not answer your question.

當然。那麼，讓我試著談談我為什麼對成長如此充滿信心。我們可以談談競爭。我們看看這樣是否能解答你的問題。

When I think of the cloud, the cloud that we have today is really built on the backs of people. It's your Facebook data, it's your Salesforce data, it's your Twitter data. It's all data that is really across the devices that we pretty much handle day to day.

當我想到雲端運算時，我意識到我們今天所擁有的雲端運算實際上是建立在人們的辛勤勞動之上的。這是你的 Facebook 數據，這是你的 Salesforce 數據，這是你的 Twitter 數據。這些數據實際上分佈在我們日常處理的各種設備上。

The current estimates are if you look out into 2020, that average person will generate about 1.5 gigabytes a day of data off those devices. Those are going to be all your posts and pictures and all that kind of information.

根據目前的估計，到 2020 年，普通人每天將透過這些設備產生約 1.5 GB 的數據。那裡將是你所有的貼文、圖片以及所有這類資訊。

If you take a look at the average autonomous car in 2020, the estimates right now is it will throw off about 40 gigabytes a minute of data. If you take a look at the average autonomous drone doing some kind of scan looking for somebody lost in the forest or scanning a mine, it's going to throw off about 20 gigabytes a minute. If you take something like our replay technology that is filming in virtual reality a basketball game or a football game, it's throwing off 200 gigabytes a minute right now. And as we continue to refine the accuracy of that, that number will likely just grow.

如果看一下 2020 年的平均自動駕駛汽車，目前的估計是每分鐘會產生約 40 GB 的數據。如果你看一下普通的自主無人機，例如在森林裡尋找迷路的人或掃描礦井，它每分鐘會產生大約 20 GB 的資料。以我們的回放技術為例，它以虛擬實境技術拍攝籃球比賽或足球比賽，目前每分鐘會產生 200 GB 的數據。隨著我們不斷提高預測的準確性，這個數字很可能會繼續成長。

So it's that growth in data and the need to both process it at the edge, and then through the data center and into the cloud to be able to store it, to be able to apply machine learning to all of those applications, those all tell me that the cloud is going to continue to grow. It's going to be lumpy.

因此，資料量的增長，以及在邊緣處理資料、透過資料中心處理資料並上傳到雲端進行儲存、將機器學習應用於所有這些應用的需求，都表明雲端運算將繼續發展壯大。表面會凹凸不平。

These guys don't build out their data centers in a linear fashion. They go, they build out a big chunk of overcapacity so that they can go then sell that and have expansion space. And they don't build for a while.

這些公司建立資料中心的方式並非線性。他們會建造大量的過剩產能，然後把這些產能賣掉，以獲得擴張空間。而且他們有一段時間不會進行建設。

And so I know people worry about, is it slowing down? But these trends and data that tell me, no, it's not slowing down over the long term. And what you're really going to see is just the buying patterns and the build-outs of the various structures that are going up.

所以我知道人們擔心，它是否會放緩？但這些趨勢和數據告訴我，不，從長遠來看，這種趨勢並沒有放緩。你真正將會看到的是購買模式和正在建造中的各種建築物的建造情況。

As far as competition, there's always going to be competition in this market. I expect it. That's okay. We think of ourselves as competition, in fact.

至於競爭，這個市場永遠都會有競爭。我預料到了。沒關係。事實上，我們把自己視為競爭對手。

We are built on a model that says we have to build a continuous improvement of our products such that we are replacing ourself with a better cost per performance model over time. And so we know that even if there was no competition, the competition is we've got to build a product that's better and drives replacement as well as growth.

我們的經營模式是，我們必須不斷改進產品，隨著時間的推移，不斷提升產品的性價比。因此我們知道，即使沒有競爭，競爭也在於我們必須打造一款更好的產品，從而推動產品更新換代並實現成長。

And so, I look at the competition as it's welcome, it keeps us better, it's always been out there. There will always be somebody out there. But really what we have to do is build products that are so competitive that people want to replace our products with our new product. That then is one of the best models to use for making sure you stay ahead.

因此，我認為競爭是值得歡迎的，它能讓我們變得更好，競爭一直都存在。總會有人願意伸出援手。但我們真正需要做的，是打造出極具競爭力的產品，讓人們想要用我們的新產品來取代我們的產品。因此，這是確保你保持領先的最佳模型之一。

Thank you.

謝謝。

Thanks, Vivek. Operator, can you go -- please go ahead and introduce our first questioner -- or last questioner, excuse me.

謝謝你，維韋克。接線員，請您介紹我們的第一位提問者——或者最後一位提問者，不好意思。

David Wong, Wells Fargo.

David Wong，富國銀行。

Thanks very much. Just following up from the earlier round. Can you give us some feel for your attitude to total amount of debt?

非常感謝。這是對上一輪的後續討論。能否談談您對債務總額的態度？

You have a goal of net cash neutrality, but do you have an upper limit on the total amount of debt you're willing to carry? Might you choose at some point to repatriate overseas cash to bring down debt or pay dividends and stock purchases?

你的目標是實現淨現金中立，但是你願意承擔的債務總額是否有上限？您是否會在某個時候選擇將海外現金匯回國內以償還債務或支付股息和購買股票？

So there certainly is a limit to the amount of overall debt that I'd feel comfortable with, but it's not something that we have articulated externally and it'll vary by the size of the Company and the cash flow. To my philosophy just generally, I'm not a believer in taking on debt to do stock buybacks. You really have not seen us do that.

因此，我個人能夠接受的總債務金額肯定有一個上限，但這並不是我們對外明確表示的，而且這個上限會根據公司的規模和現金流而有所不同。就我個人理念而言，我不贊成透過舉債來回購股票。你真的沒看過我們那樣做。

Obviously it's a Board decision, but I'm just sharing with you my view of it. I wouldn't take on debt in order to do buybacks or to do a special dividend or anything like that.

這顯然是董事會的決定，但我只是想和你們分享我的看法。我不會為了回購股票、發放特別股利或做類似的事情而舉債。

Great. Thanks so much.

偉大的。非常感謝。

You're welcome

不客氣

David, did you have a follow up? Sounds like you're all set, David.

大衛，你還有後續問題嗎？聽起來你一切都準備就緒了，大衛。

All right. Thank you all for joining us today. Operator, please go ahead and wrap up the call.

好的。感謝各位今天蒞臨。接線員，請結束通話。

Ladies and gentlemen, thank you for participating in today's conference. That does conclude today's program. You may all disconnect. Everyone have a great day.

女士們、先生們，感謝各位參加今天的會議。今天的節目到此結束。你們可以斷開連結了。祝大家今天過得愉快。