英特爾 (INTC) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Intel Corporation First Quarter 2018 Earnings Conference Call. (Operator Instructions) And as a reminder, this conference may be recorded.

女士們，先生們，美好的一天，歡迎參加英特爾公司 2018 年第一季度收益電話會議。 （操作員說明）作為提醒，本次會議可能會被記錄下來。

I would now like to turn the conference over to Mr. Mark Henninger, Head of Investor Relations. Sir, you may begin.

我現在想將會議轉交給投資者關係主管 Mark Henninger 先生。先生，您可以開始了。

Thank you, operator. And welcome, everyone, to Intel's first quarter 2018 earnings conference call. By now, you should have received a copy of our earnings release and the CFO earnings presentation that goes along with it. If you've not received both documents, they're available on our investor website, intc.com.

謝謝你，接線員。歡迎大家參加英特爾 2018 年第一季度財報電話會議。到目前為止，您應該已經收到了我們的收益發布和隨附的 CFO 收益演示文稿的副本。如果您沒有收到這兩個文件，可以在我們的投資者網站 intc.com 上找到它們。

The CFO earnings presentation is also available on the webcast window for those joining us online.

在線加入我們的人也可以在網絡廣播窗口上觀看 CFO 收益報告。

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

今天，我們的首席執行官 Brian Krzanich 加入了我的行列；和我們的首席財務官 Bob Swan。稍後，我們將聽到他們兩人的簡短評論，然後是問答。

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，讓我提醒大家，今天的討論包含基於我們目前所看到的環境的前瞻性陳述，因此確實包含風險和不確定性。請參閱我們的新聞稿，了解有關可能導致實際結果出現重大差異的特定風險因素的更多信息。

A brief reminder that this quarter, we have provided both GAAP and non-GAAP financial measures. Today, we will be speaking to the non-GAAP financial measures when describing our consolidated results. The CFO earnings presentation and earnings release available on intc.com include the full GAAP and non-GAAP reconciliations.

簡要提醒一下，本季度我們提供了 GAAP 和非 GAAP 財務指標。今天，我們將在描述我們的綜合結果時談到非公認會計原則的財務指標。 intc.com 上提供的 CFO 收益介紹和收益發布包括完整的 GAAP 和非 GAAP 對賬。

With that, let me hand it over to Brian.

有了這個，讓我把它交給布賴恩。

Thanks, Mark. Coming off a record 2017, 2018 is off to an exceptionally strong start. Q1 was Intel's best first quarter ever and significantly exceeded the expectations we set in January. Our Client Computing Group continue to execute well, producing growth within a declining PC market. And our transformation to a data-centric company accelerated with our data-centric businesses, booting McAfee up 25% over the first quarter of last year.

謝謝，馬克。 2017 年打破了創紀錄的 2018 年，開局異常強勁。第一季度是英特爾有史以來最好的第一季度，大大超出了我們在一月份設定的預期。我們的客戶端計算部門繼續表現良好，在下滑的 PC 市場中實現增長。我們以數據為中心的業務加速了我們向以數據為中心的公司的轉型，使 McAfee 比去年第一季度增長了 25%。

The strength of Intel's business underscores my confidence in our strategy. What we're seeing is an unrelenting demand for compute performance driven by the continuing growth of data and the need to process, analyze, store and share that data. That dynamic benefits our traditional CPU business and it reinforces the big bets we've made in memory, modems, FPGAs and autonomous vehicles. We're competing to win in our largest collection of addressable markets ever. And importantly, we're not just competing in these markets. We're leading and shaping them as our first quarter results demonstrate.

英特爾業務的實力凸顯了我對我們戰略的信心。我們看到的是，由於數據的持續增長以及處理、分析、存儲和共享數據的需求，對計算性能的需求不斷增長。這種動態有利於我們傳統的 CPU 業務，並加強了我們在內存、調製解調器、FPGA 和自動駕駛汽車方面的大賭注。我們正在競相贏得我們有史以來最大的潛在市場集合。重要的是，我們不僅僅是在這些市場上競爭。正如我們的第一季度業績所顯示的那樣，我們正在引領和塑造它們。

Data Center Group revenue was up 24% year-over-year. We saw broad-based demand strength across all DCG segments in Q1. And customer preference for high performance products, including Xeon Scalable drove a richer ASP mix.

數據中心集團收入同比增長 24%。我們在第一季度看到所有 DCG 細分市場的廣泛需求強度。客戶對包括 Xeon Scalable 在內的高性能產品的偏好推動了更豐富的 ASP 組合。

The cloud segment grew 45%. And in the comm service provider segment, we continue to take share and grew revenue 33% as customers chose IA-based solutions to virtualize and transform their networks as the industry prepares for the 5G transition.

雲業務增長了 45%。在通信服務提供商領域，隨著行業為 5G 轉型做準備，客戶選擇了基於 IA 的解決方案來虛擬化和改造他們的網絡，因此我們繼續佔據份額並將收入增長 33%。

Intel's presence at the Winter Olympics in Pyongyang was a powerful showcase of our 5G capability. Intel and KT deployed the world's largest 5G network to date, including more than 20 5G links delivering 3,800 terabytes of network capacity. We've established leadership in 5G. And when commercial networks begin deploying around 2019, we'll be there with industry-leading products from the core of the data center to the edge to mobile devices.

英特爾在平壤冬奧會上的亮相有力地展示了我們的 5G 能力。英特爾和 KT 部署了迄今為止世界上最大的 5G 網絡，包括 20 多個 5G 鏈路，提供 3,800 TB 的網絡容量。我們已經在 5G 領域確立了領導地位。當商業網絡在 2019 年左右開始部署時，我們將提供從數據中心核心到邊緣再到移動設備的行業領先產品。

And we also saw growth in our enterprise segments for the second consecutive quarter as macro strength continued and customers prioritized hybrid and on-premises infrastructure investments. Data center customers are also looking to FPGAs for workload acceleration. The Programmable Solutions Group again set a record for design win volume, and those design wins are translating directly into revenue.

我們還看到我們的企業部門連續第二個季度增長，因為宏觀實力持續增長，客戶優先考慮混合和本地基礎設施投資。數據中心客戶也在尋求 FPGA 來加速工作負載。 Programmable Solutions Group 再次創造了設計勝出量的記錄，而這些設計勝出正在直接轉化為收入。

PSG's business grew 17% in Q1 on data center and embedded strength along with last time buys. PSG's data center segment was up 150% over last year, and the Advanced products category, our 28-, 20- and 14-nanometer solutions grew more than 40%.

PSG 的業務在第一季度的數據中心和嵌入式實力以及最後一次購買方面增長了 17%。 PSG 的數據中心部門比去年增長 150%，高級產品類別，我們的 28、20 和 14 納米解決方案增長超過 40%。

Microsoft also recently announced that they're using Intel's FPGAs to power new Bing intelligent search features using real-time AI. PSG's momentum is evidence that our 2016 acquisition of Altera is delivering value for our customers and contributing directly to Intel's growth.

微軟最近還宣布，他們正在使用英特爾的 FPGA 來支持使用實時 AI 的新 Bing 智能搜索功能。 PSG 的發展勢頭證明我們在 2016 年收購 Altera 正在為我們的客戶創造價值並直接促進英特爾的增長。

Our IoTG business grew 17% on record unit volume with continuing momentum in the retail and video segment as compute increasingly moves to the edge. Consistent with our commitment to be disciplined with our resources, we made the decision to divest Wind River and sharpen the focus of IoTG on other growth opportunities that more closely align to our strategy.

隨著計算越來越多地向邊緣移動，我們的 IoTG 業務以創紀錄的單位數量增長了 17%，零售和視頻領域的勢頭持續強勁。根據我們對資源進行約束的承諾，我們決定剝離 Wind River，並將 IoTG 的重點放在更符合我們戰略的其他增長機會上。

The memory business set a revenue record, growing 20% in the first quarter, crossing over the $1 billion mark in revenue. The last business that passed that mark was DCG, crossing over that mark over a decade ago.

內存業務創下收入紀錄，第一季度增長 20%，收入突破 10 億美元大關。上一個通過該標記的企業是 DCG，十多年前就跨越了該標記。

Both yields and output in our Dalian factory continue to ramp ahead of schedule. In fact, we believe the Dalian Fab extension is one of the fastest brownfield of wafer starts projects in memory industry history.

我們大連工廠的產量和產量繼續提前增長。事實上，我們相信大連晶圓廠擴建是存儲器行業歷史上最快的晶圓啟動項目之一。

We also launched our first mainstream Optane SSDs for clients, known as the 800 series, driving further industry adoption of this revolutionary technology. The NSG remains on track to be profitable for the full year.

我們還為客戶推出了我們的第一款主流 Optane SSD，即 800 系列，推動了這一革命性技術的進一步行業採用。 NSG 全年仍有望實現盈利。

And we continue to demonstrate momentum in autonomous driving, and I'm happy to report that the Intel Mobileye autonomous vehicle test fleet has begun to operate in Israel and will expand to other geographies in the coming months. Our fleet fully implements the Responsible Sensitive Safety system or RSS that we introduced last year. This unique system applies a formal, common sense safety field to the vehicle's decision making, resulting in the optimal combination of provable safety and humanlike driving style. We believe that the winning path to autonomous driving will be a progression from ADAS capabilities to full autonomous driving. And we're seeing significant momentum in the marketplace, including a recent high-volume design win for EyeQ5 with a European premium vehicle manufacturer.

我們繼續展示自動駕駛的勢頭，我很高興地報告英特爾 Mobileye 自動駕駛汽車測試車隊已經開始在以色列運營，並將在未來幾個月擴展到其他地區。我們的車隊完全實施了我們去年推出的責任敏感安全系統或 RSS。這個獨特的系統將正式的、常識性的安全領域應用於車輛的決策，從而實現了可證明的安全性和人性化駕駛風格的最佳組合。我們相信，通往自動駕駛的製勝道路將是從 ADAS 能力到完全自動駕駛的進步。我們在市場上看到了顯著的勢頭，包括最近與歐洲高檔汽車製造商合作的 EyeQ5 的大批量設計。

And finally, the Client Computing Group extended its strong track record of execution in a challenging PC environment. The revenue was up 3% despite a declining PC TAM on strength in the commercial and enthusiast segments, leading to a strong core mix. The CCG launched its first ever i9 processors for laptops in the first quarter, again demonstrating our outright product leadership.

最後，Client Computing Group 在具有挑戰性的 PC 環境中擴展了其強大的執行記錄。儘管 PC TAM 在商業和發燒友領域的實力下降，但收入增長了 3%，從而導致了強大的核心組合。 CCG 在第一季度推出了首款用於筆記本電腦的 i9 處理器，再次展示了我們在產品方面的絕對領先地位。

We continue to make progress on our 10-nanometer process. We are shipping in low volume and yields are improving, so the rate of improvement is slower than we anticipated. As a result, volume production is moving from the second half of 2018 into 2019. We understand the yield issues and have defined improvements for them, but they will take time to implement and qualify. We have leadership products on the road map that continue to take advantage of 14-nanometer with Whiskey Lake for Client and Cascade Lake for the data center coming later this year.

我們繼續在 10 納米工藝上取得進展。我們正在小批量發貨，產量正在提高，因此改進速度比我們預期的要慢。因此，量產將從 2018 年下半年轉移到 2019 年。我們了解產量問題並為它們定義了改進，但它們需要時間來實施和驗證。我們在路線圖中擁有領先的產品，這些產品將繼續利用 14 納米技術，為客戶提供 Whiskey Lake，為今年晚些時候推出的數據中心提供 Cascade Lake。

Moore's Law is essential to our strategy and our product leadership. It continues to create significant value for Intel and our customers. While it's taking longer and costing more to deliver and yield advanced process technologies, we are able to optimize our process and products within a node to deliver meaningful performance improvements. For example, 14-nanometer process optimizations and architectural improvements have resulted in performance gains of more than 70% since the first 14-nanometer products were launched. We combined these advances in manufacturing technology and architecture that produced truly a leadership product, and it's that product leadership that ultimately matters most to our customers and end users.

摩爾定律對我們的戰略和產品領導力至關重要。它繼續為英特爾和我們的客戶創造重要價值。雖然交付和生產先進的工藝技術需要更長的時間和更多的成本，但我們能夠在一個節點內優化我們的工藝和產品，以提供有意義的性能改進。例如，自第一批 14 納米產品推出以來，14 納米工藝優化和架構改進已使性能提高了 70% 以上。我們結合了製造技術和架構方面的這些進步，生產出了真正的領先產品，而這種產品的領先地位最終對我們的客戶和最終用戶最重要。

Intel and the industry stepped up for a tough challenge as we responded to the security vulnerabilities known as Spectre and Meltdown. I'm pleased with our progress and proud of how Intel and industry partners address this issue collaboratively, with transparency and with customer-first urgency. We're delivering against our security-first pledge and we've now rolled out micro code-based mitigation for all Intel products launched over the last 9 years that require protection against Spectre and Meltdown.

在我們應對被稱為 Spectre 和 Meltdown 的安全漏洞時，英特爾和整個行業加緊應對嚴峻挑戰。我對我們的進步感到高興，並為英特爾和行業合作夥伴如何以透明和客戶至上的緊迫性協作解決這個問題感到自豪。我們正在兌現我們的安全第一承諾，現在我們已經為過去 9 年推出的所有需要針對 Spectre 和 Meltdown 提供保護的英特爾產品推出了基於微代碼的緩解措施。

We'll also begin delivering both client and data center products with the hardware-based mitigations later this year.

我們還將在今年晚些時候開始提供基於硬件的緩解措施的客戶端和數據中心產品。

With our Data centric transformation accelerating, we're raising our expectations for our full year results, yet more evidence that our strategy is working. As Intel marks its 50th anniversary, we're well positioned to be the end-to-end platform provider for the new data world and the leader in artificial intelligence and the autonomous revolution.

隨著我們以數據為中心的轉型加速，我們提高了對全年業績的期望，更多的證據表明我們的戰略正在奏效。在英特爾迎來 50 週年紀念之際，我們已做好準備成為新數據世界的端到端平台提供商以及人工智能和自主革命的領導者。

With that, let me hand it over to Bob.

有了這個，讓我把它交給鮑勃。

Thanks, Brian. Q1 was truly an outstanding start to 2018. Our transformation to a data-centric company continues to build momentum. Revenue was a first quarter record of $16.1 billion, up 13% year-over-year. Operating income was $4.8 billion, up 21% year-over-year. And EPS of $0.87 was up 32% year-over-year.

謝謝，布賴恩。第一季度確實是 2018 年的一個出色開端。我們向以數據為中心的公司轉型的勢頭繼續增強。第一季度收入達到創紀錄的 161 億美元，同比增長 13%。營業收入為 48 億美元，同比增長 21%。每股收益為 0.87 美元，同比增長 32%。

From a capital allocation perspective, we generated $6.3 billion of cash flow from operations and returned $3.3 billion to shareholders in the form of buybacks and dividend. As a result of the strength we are seeing in the business, we are raising our full year revenue guide by $2.5 billion to $67.5 billion. We're raising our EPS guide by $0.30 to $3.85. And we're raising our free cash flow guide by $1.5 billion to $14.5 billion.

從資本配置的角度來看，我們從運營中產生了 63 億美元的現金流，並以回購和股息的形式向股東返還了 33 億美元。由於我們在業務中看到的實力，我們將全年收入指南提高了 25 億美元，達到 675 億美元。我們將每股收益指南上調 0.30 美元至 3.85 美元。我們正在將我們的自由現金流指南提高 15 億美元，達到 145 億美元。

Our Q1 results demonstrated continued momentum in our transformation from a PC-centric company to a data-centric company. Intel's data-centric businesses were up 25% collectively with each business individually growing double digits. Our data-centric businesses are now approaching 50% of our revenue, an all-time high.

我們的第一季度業績顯示了我們從以 PC 為中心的公司向以數據為中心的公司轉型的持續動力。英特爾以數據為中心的業務總體增長了 25%，每項業務均實現兩位數增長。我們以數據為中心的業務現在接近我們收入的 50%，創歷史新高。

Our PC-centric business was up 3% on strength in notebook, desktop and modem. DCG strong cash flows fund Intel's investment in new data-centric growth.

我們以 PC 為中心的業務在筆記本電腦、台式機和調製解調器方面增長了 3%。 DCG 強勁的現金流為英特爾投資於以數據為中心的新增長提供了資金。

As a reminder, we adopted a new revenue recognition standard in Q1. The new standard drove $462 million in incremental Q1 revenue recognition. This predominantly affected CCG and NSG. By year-end, we expect roughly half of this to net out.

提醒一下，我們在第一季度採用了新的收入確認標準。新標準推動第一季度收入確認增加了 4.62 億美元。這主要影響 CCG 和 NSG。到年底，我們預計其中大約一半將被扣除。

Moving to Q1 earnings. We generated significant EPS expansion in the quarter, up 32% year-on-year. Our non-GAAP EPS improvement was driven by strong top line growth, a 3-point improvement in operating margins and an 11-point reduction in our effective tax rate. The 3-point improvement in operating margins were driven by a 4-point reduction in spending, partially offset by a 1 point decline in gross margin. The 1 point decline in gross margin was driven by growth in our adjacencies, which have lower gross margins than our CPU products.

轉向第一季度的收益。我們在本季度實現了顯著的每股收益增長，同比增長 32%。我們的非公認會計原則每股收益的改善是由強勁的收入增長、營業利潤率提高 3 個百分點和我們的有效稅率降低 11 個百分點推動的。營業利潤率提高 3 個百分點是由於支出減少 4 個百分點，部分被毛利率下降 1 個百分點所抵消。毛利率下降 1 個百分點是由於我們相鄰產品的增長，其毛利率低於我們的 CPU 產品。

From a spending standpoint, versus last year, we delivered $1.3 billion more revenue on $200 million less spending.

從支出的角度來看，與去年相比，我們在支出減少 2 億美元的情況下增加了 13 億美元的收入。

As a second reminder, we adopted a new mark-to-market standard for our equity investments. In 2017, all realized gains and losses were recorded in our non-GAAP results. But in 2018, all mark-to-market adjustments flow through earnings. In an effort to eliminate volatility, we have excluded these adjustments from our non-GAAP results. Our Q1 GAAP EPS included approximately $0.13 for mark-to-market gains in our ICAP portfolio that were excluded from our non-GAAP results.

作為第二個提醒，我們對我們的股權投資採用了新的按市值計價的標準。 2017 年，所有已實現的損益都記錄在我們的非公認會計原則業績中。但在 2018 年，所有按市值計價的調整都通過收益進行。為了消除波動性，我們已將這些調整排除在我們的非公認會計原則結果之外。我們的第一季度 GAAP 每股收益包括我們的 ICAP 投資組合中大約 0.13 美元的按市值計價收益，這些收益被排除在我們的非 GAAP 業績之外。

We are also making excellent progress in our operating efficiencies. In January, we pulled in our 30% spending goal from 2020 to 2019, and we're off to a good start in 2018. Total spending was down 4% year-over-year in the quarter. R&D spending as a percentage of revenue was down approximately 2 points. And our SG&A costs were down over 2 points. Our intensity on spending is designed to accelerate top line growth, and it is paying off. Currently, as a result of strong top line growth, we now expect to meet our 30% spending target in 2018, 2 years ahead of our original expectations.

我們在運營效率方面也取得了顯著進步。 1 月份，我們將 2020 年至 2019 年的支出目標提高到 30%，我們在 2018 年開局良好。本季度總支出同比下降 4%。研發支出佔收入的百分比下降了約 2 個百分點。我們的 SG&A 成本下降了 2 個百分點以上。我們的支出強度旨在加速收入增長，並且正在取得成效。目前，由於強勁的收入增長，我們現在預計 2018 年將實現 30% 的支出目標，比我們最初的預期提前 2 年。

Let me touch briefly on our Q1 performance by segment. The Data Center Group delivered a great quarter, much better than expected. DCG revenue of $5.2 billion was up 24% year-over-year, and operating income of $2.6 billion grew 75%. Q1 operating margin was 50%. Overall, unit volume was up 16%, and ASPs were up 7%.

讓我簡要介紹一下我們按細分市場劃分的第一季度業績。數據中心集團實現了一個出色的季度，比預期的要好得多。 DCG 收入 52 億美元，同比增長 24%，營業收入 26 億美元，增長 75%。第一季度營業利潤率為 50%。總體而言，單位銷量增長了 16%，平均售價增長了 7%。

We saw broad-based demand strength in Q1 with customer preference for high-performance products driving richer ASPs. Cloud and comms service providers segments were greater than 60% of the data center business. And this was the first quarter our cloud business has surpassed $2 billion in revenue, which made it our largest segment in the first quarter.

我們在第一季度看到了廣泛的需求強度，客戶對高性能產品的偏好推動了更豐富的 ASP。雲和通信服務提供商部分佔數據中心業務的 60% 以上。這是第一季度我們的雲業務收入超過 20 億美元，這使其成為我們第一季度最大的部門。

Additionally, we redefined our expanded TAM for DCG to markets beyond the CPU, like silicon photonics, Fabric, network ASICs and 3D XPoint memory. These adjacent businesses are gaining traction and grew 16% year-over-year. DCG performance in all segments was better than our January forecast, and we expect that strength to continue to aid DCG momentum through the second quarter.

此外，我們將 DCG 的擴展 TAM 重新定義為 CPU 以外的市場，例如矽光子學、Fabric、網絡 ASIC 和 3D XPoint 內存。這些相鄰的業務正在獲得牽引力，同比增長 16%。 DCG 在所有領域的表現都好於我們 1 月份的預測，我們預計這種實力將繼續推動 DCG 在第二季度的發展勢頭。

Our additional data-centric businesses, IoTG, NSG and PSG, are becoming a larger component of our overall business, growing 18% year-over-year in the quarter. Our Internet of Things business achieved revenue of $840 million, growing 17% year-over-year, driven by strength in video and continued momentum in retail. Operating profit was $227 million, up 116% year-over-year on higher revenue and lower spending as we shifted our ADAS investments to Mobileye.

我們的其他以數據為中心的業務 IoTG、NSG 和 PSG 正在成為我們整體業務的重要組成部分，本季度同比增長 18%。我們的物聯網業務實現了 8.4 億美元的收入，同比增長 17%，這得益於視頻業務的強勢和零售業的持續發展勢頭。隨著我們將 ADAS 投資轉移到 Mobileye，營業利潤為 2.27 億美元，同比增長 116%，原因是收入增加和支出減少。

As you heard from Brian, the Mobileye business is going strong. Q1 revenue was $151 million. And while it's early in the journey, we are on track to our deal thesis.

正如您從 Brian 那裡聽到的，Mobileye 的業務正在發展壯大。第一季度收入為 1.51 億美元。雖然它還處於旅程的早期階段，但我們正朝著我們的交易論點前進。

Our memory business broke the $1 billion in quarterly revenue for the first time, up 20% year-over-year with strong demand for data center SSD solutions.

我們的內存業務季度收入首次突破 10 億美元，同比增長 20%，對數據中心 SSD 解決方案的需求強勁。

We reduced our operating losses by $48 million with strong gigabyte demand and unit cost reductions more than offsetting ASP reductions.

由於強勁的千兆字節需求和單位成本的降低，我們將運營虧損減少了 4,800 萬美元，而不是抵消了 ASP 的降低。

The transition to 64 3D NAND is improving our cost while we invest in and expand our Dalian factory. We expect the second half of '18 to be balanced between supply and demand, and we continue to expect this segment to be profitable for the full year of 2018.

在我們投資和擴建大連工廠的同時，向 64 3D NAND 的過渡正在降低我們的成本。我們預計 18 年下半年將在供需之間保持平衡，我們繼續預計該細分市場將在 2018 年全年實現盈利。

The Programmable Solutions Group had revenue of $498 million with 17% growth, driven by strength in data center and the embedded segments. Operating profit was $97 million, up 5% year-over-year. The PSG team continues to perform and execute well. Our advanced FPGA products, those at 28-, 20- and 14-nanometer, grew over 40% in the quarter. In fact, PSG won more customer designs in Q1 than in any prior quarter.

可編程解決方案集團的收入為 4.98 億美元，增長 17%，這得益於數據中心和嵌入式領域的實力。營業利潤為 9700 萬美元，同比增長 5%。巴黎圣日耳曼團隊繼續表現出色並執行良好。我們先進的 28、20 和 14 納米 FPGA 產品在本季度增長了 40% 以上。事實上，PSG 在第一季度贏得的客戶設計比上一季度都多。

Finally, the Client Computing Group had another strong quarter. Revenues of $8.2 billion were up 3%, and operating margins were down 4 points due to 10-nanometer transition cost and growth in our modem business.

最後，客戶端計算集團又迎來了一個強勁的季度。由於 10 納米過渡成本和我們調製解調器業務的增長，收入 82 億美元，增長 3%，營業利潤率下降 4 個百分點。

Our PC-centric business continues to perform well in a challenging but improving market and serves as a significant source of cash flow for the company. We saw strength in the commercial and gaming businesses, and we believe the worldwide PC supply chain is operating at healthy levels.

我們以 PC 為中心的業務在充滿挑戰但不斷改善的市場中繼續表現良好，並成為公司現金流的重要來源。我們看到了商業和遊戲業務的實力，我們相信全球 PC 供應鏈正以健康的水平運行。

We've laid out our capital allocation priorities: invest organically, expand acquisitively and return capital to our shareholders, and do it wisely. We continue to execute to these priorities. We generated $6.3 billion in cash from operations. This included $1.7 billion in cash received from NAND customer supply agreement. We invested $2.9 billion in CapEx and delivered $3.4 billion in free cash flow, up 73% year-over-year. We returned almost 100% of free cash flow to our shareholders in the form of $1.9 billion in buybacks and $1.4 billion in dividends, a 10% increase per share over last year.

我們已經制定了我們的資本配置優先事項：有機投資、收購擴張並將資本返還給我們的股東，並且明智地去做。我們將繼續執行這些優先事項。我們從運營中產生了 63 億美元的現金。這包括從 NAND 客戶供應協議中收到的 17 億美元現金。我們在資本支出上投資了 29 億美元，實現了 34 億美元的自由現金流，同比增長 73%。我們以 19 億美元的回購和 14 億美元的股息的形式向股東返還了幾乎 100% 的自由現金流，比去年每股增長 10%。

Now moving to our full year outlook. Our strategy is working, and our investments are paying off. We are now forecasting the midpoint of the revenue range at $67.5 billion, up $2.5 billion versus our expectations in January. We expect operating margin of approximately 31%, up 1 point from January as spending as a percent of revenue drops to approximately 30%.

現在轉到我們的全年展望。我們的戰略正在奏效，我們的投資正在獲得回報。我們現在預測收入範圍的中點為 675 億美元，比我們 1 月份的預期增加 25 億美元。我們預計營業利潤率約為 31%，比 1 月份上升 1 個百分點，因為支出佔收入的百分比下降到約 30%。

Versus prior estimates, gross margin will be approximately flat as broad-based strength in our business is offset by the higher cost associated with the 10-nanometer volume production shift to 2019.

與之前的估計相比，毛利率將大致持平，因為我們業務的廣泛實力被與 10 納米批量生產轉移到 2019 年相關的更高成本所抵消。

We now expect a full year tax rate of 13%, 1 point down versus our prior estimate. Overall, stronger top line growth, improved operating margins and a lower tax rate will boost EPS to $3.85, up $0.30 versus prior estimate. From a cash flow perspective, we are increasing our free cash flow to $14.5 billion, up $1.5 billion from January. We now expect net capital deployed of approximately $12.5 billion, up $500 million versus the expectations we set in January. This reflects gross CapEx of approximately $14.5 billion offset by approximately $2 billion of customer prepayments for memory supply agreement.

我們現在預計全年稅率為 13%，比我們之前的估計低 1 個百分點。總體而言，更強勁的收入增長、更高的營業利潤率和更低的稅率將使每股收益達到 3.85 美元，比之前的估計高 0.30 美元。從現金流的角度來看，我們將自由現金流增加到 145 億美元，比 1 月份增加了 15 億美元。我們現在預計部署的淨資本約為 125 億美元，比我們 1 月份設定的預期增加 5 億美元。這反映了大約 145 億美元的總資本支出被大約 20 億美元的內存供應協議客戶預付款所抵消。

In Q2, we expect strong growth to continue. We are forecasting the midpoint of the revenue range at $16.3 billion, up 10% year-over-year. We expect operating margin of approximately 30%, up 1 point versus last year, which reflects approximately 1.5 point decrease in gross margin and a 2.5 to 3-point decline in spending.

在第二季度，我們預計將繼續強勁增長。我們預測收入範圍的中點為 163 億美元，同比增長 10%。我們預計營業利潤率約為 30%，比去年上升 1 個百分點，這反映了毛利率下降約 1.5 個百分點和支出下降 2.5 至 3 個百分點。

We expect EPS of $0.85, up 31% excluding equity adjustments from strong top line growth, spending reductions and a lower tax rate.

我們預計每股收益為 0.85 美元，增長 31%，不包括強勁的收入增長、支出減少和較低的稅率導致的股權調整。

To sum it up, we believe 2018 will be another record year for Intel. We've met and exceeded our financial commitments, and we feel great about where we are relative to our 3-year plan. Our PC-centric team keeps winning in a challenging market, and our data-centric businesses are growing fast, fueling Intel's transformation to a company that powers the cloud in smart connected devices.

綜上所述，我們相信 2018 年將是英特爾再創紀錄的一年。我們已經達到並超過了我們的財務承諾，我們對我們相對於我們的 3 年計劃的位置感到非常滿意。我們以 PC 為中心的團隊在充滿挑戰的市場中不斷獲勝，我們以數據為中心的業務正在快速增長，推動英特爾轉型為一家為智能連接設備中的雲提供支持的公司。

With that, let me turn it over to Mark, and we'll get to your questions.

有了這個，讓我把它交給馬克，我們會回答你的問題。

All right. Thank you, Brian and Bob. Moving on now to the Q&A. (Operator Instructions) Operator, please go ahead and introduce our first questioner.

好的。謝謝你，布賴恩和鮑勃。現在繼續進行問答。 （操作員說明）操作員，請繼續介紹我們的第一個提問者。

And the first question will come from the line of Ross Seymore with Deutsche Bank.

第一個問題來自德意志銀行的羅斯·西莫爾（Ross Seymore）。

Brian, one for you about the sustainability of this demand, specifically in the data center side. I think people are pretty aware that the macroeconomic drivers are all kind of going the right way and that's helping the enterprise side of things. But the acceleration of the cloud and the comm side for the last 2 quarters is beating your own expectations for growth rates and been quite strong. How much of that do believe is Intel specific? And if you can go to the reasons why? Or is the macro side really the bigger driver in those 2 vectors as well?

Brian，關於這種需求的可持續性，特別是在數據中心方面。我認為人們很清楚宏觀經濟驅動因素都在朝著正確的方向發展，這對企業方面有所幫助。但過去兩個季度雲計算和通信方面的加速超出了你自己對增長率的預期，而且相當強勁。其中有多少是英特爾特有的？如果你可以去的原因是什麼？或者宏觀方面真的是這兩個向量中更大的驅動因素嗎？

Sure, Ross. That's a good question. Let me try and answer it. So first thing I'll tell you is that there is a bit here that is the transition to cloud continues to occur, occurring at a bit even faster rate so that -- you do see that trend is going on. But remember, we've always talked about that over the long haul, you have to look at these, it can sometimes be lumpy. So our forecast for the long term is still in that high teens, low 20s kind of range for that kind of growth. We thought that we -- the enterprise is clearly up. We think that -- as you said that a lot of that is reinvigoration of investments by companies in on-site data. Our view of long term there, I look out over the long term again, it's still -- that should be in a declining mode versus moving those workloads long term over to the cloud. So if I take a look at this, as Bob said in his prepared remarks, so we look at -- if I look at our data-centric businesses in general, so even just beyond the data center, we see these growing in that mid- to high teens range. And that's kind of how we view this. And we do believe that is sustainable. And it will move from cloud to enterprise. And sometimes, you'll see IoT pick up a bit, offset something, but that's why we grouped those into that data centric. But they're all really tied together. It's data coming from the edge, moving through the network into the data center and really being based in the cloud and analytics being applied to it and people using that data then to make decisions to drive businesses. So we think it's sustainable in kind of the data-centric numbers that you saw. But it will float between those various segments.

當然，羅斯。這是個好問題。讓我試著回答一下。所以我要告訴你的第一件事是，這裡有一點是繼續發生向雲的過渡，以更快的速度發生，所以 - 你確實看到了這種趨勢。但是請記住，從長遠來看，我們一直在談論這個問題，你必須看看這些，它有時可能會很混亂。因此，我們對這種增長的長期預測仍處於十幾歲、二十幾歲的低水平。我們認為我們 - 企業顯然已經起來了。我們認為——正如你所說，其中很大一部分是公司對現場數據的投資重振。我們對那裡的長期看法，我再次從長遠來看，它仍然 - 應該處於下降模式，而不是將這些工作負載長期轉移到雲中。因此，如果我看一下這一點，正如鮑勃在他準備好的講話中所說，那麼我們看一下——如果我看一下我們以數據為中心的業務，即使只是在數據中心之外，我們也看到這些業務在那個中期增長- 到高青少年範圍。這就是我們的看法。我們確實相信這是可持續的。它將從雲遷移到企業。有時，你會看到物聯網有所回升，抵消了一些東西，但這就是我們將這些歸為以數據為中心的原因。但他們都真的聯繫在一起。它是來自邊緣的數據，通過網絡進入數據中心，並真正基於雲計算，並對其進行分析，然後人們使用這些數據做出決策以推動業務發展。所以我們認為你看到的以數據為中心的數字是可持續的。但它會在這些不同的細分市場之間浮動。

The only thing, Ross, that I would add is in terms of our outlook in the more near term, our outlook for the year is kind of continued strength in the second quarter similar to the first quarter. And -- but beyond that, it's probably a little cloudier. I think we are benefiting from global macroeconomic environment. I think the higher earning is -- higher earnings and the ability to deduct IT related expenditures, I think is giving CIOs a little more money to spend. And we see ourselves benefiting from that through the first half of the year.

羅斯，我唯一要補充的是，就我們近期的前景而言，我們對今年的前景是第二季度與第一季度類似的持續走強。而且 - 但除此之外，它可能有點陰雲密布。我認為我們正在受益於全球宏觀經濟環境。我認為更高的收入是——更高的收入和扣除 IT 相關支出的能力，我認為給 CIO 更多的錢可以花。我們看到自己在今年上半年從中受益。

Second half is going to be a little bit of a wait and see as to whether the short-term dynamics continue into the second half. But you go back to Brian's comments, I think the -- what we do know is the -- this increased demand for compute data, analytics, storage, rapid retrieval is what's really driving the demand for high performance compute. And not only do we see the unit volume strength but also the ASP strength, which we think is a function of Intel-related products.

下半年的短期走勢是否會延續到下半年，還需稍作觀望。但你回到布萊恩的評論，我認為——我們所知道的是——對計算數據、分析、存儲、快速檢索的需求增加是真正推動高性能計算需求的原因。而且我們不僅看到了單位體積實力，還看到了 ASP 實力，我們認為這是英特爾相關產品的一個功能。

That's very helpful. For my follow-up question, one for either of you, frankly. In the 10-nanometer pushout, do you believe that the competitive lead you have versus your competition is shrinking? Or is this a challenge everybody's going to have? And then the gross margin side of that equation, Bob, you said it was going to be a headwind into the full year guide. Any sort of linearity about when that starts to move from being a headwind to a tailwind would be great.

這很有幫助。對於我的後續問題，坦率地說，對於你們中的任何一個。在 10 納米推進中，您是否認為您與競爭對手的競爭優勢正在縮小？或者這是每個人都會遇到的挑戰？然後是這個等式的毛利率方面，鮑勃，你說這將成為全年指南的逆風。任何關於何時開始從逆風變為順風的線性都會很棒。

Sure, Ross. So let me start -- we absolutely have product and process leadership. We're shipping 10-nanometer products today. So I did want to make sure that, that was very clear to you and that was our densest, highest performing product out there. We're slowing the ramp down as we go and fix the yields, and we were able to do that. A, we understand the yield issues. They're really tied to this being the last technology tied to not having EUV and the amount of multi-patterning and the effects of that or defects. But also, the real strengths of 14-nanometers, I mentioned in my prepared remarks that we've done 70% improvements in the performance of that technology over its current life time. And we believe it continues to have lags that we can continue to make improvement, both within that process technology and architecturally. That's really giving us the breathing room to go and make these yield improvements. So it's really balancing between delivering the world's best product. So we believe our road map for 2018 is strong and stronger than it's ever been. And we have the ability to carry that into 2019, allowing us to get the yields where we want them to be. So the cost and the spending are really in line with what you as a shareholder expect from us. We believe that if you take a look at others during this time frame, if you look at anybody else and said 70% improvement on a technology note, yes, let me rename those nodes as we go through this. And we have always chosen to be really transparent and clean and just say, it's improvements on the existing technology rather than renaming. So we believe we have that. Now as we look at -- out in time, we do see the density. You just take that component, the density gap is narrowing a bit. But that's out in time. But again, performance is really a function of multiple parts of the process around power and performance and in architecture. And that's why we think our products continue to lead and be the world standard.

當然，羅斯。那麼讓我開始吧——我們絕對擁有產品和流程的領導地位。我們今天發貨的是 10 納米產品。所以我確實想確保，這對你來說非常清楚，那是我們最密集、性能最高的產品。我們正在放慢下降速度並修復收益率，我們能夠做到這一點。答，我們了解產量問題。它們確實與此相關，這是與沒有 EUV 和多重圖案的數量以及該或缺陷的影響有關的最後一項技術。而且，我在準備好的評論中提到了 14 納米的真正優勢，即我們在當前生命週期內將該技術的性能提高了 70%。我們相信，無論是在工藝技術上還是在架構上，我們都可以繼續進行改進，但仍然存在滯後。這真的給了我們喘息的空間來進行這些產量改進。因此，在提供世界上最好的產品之間確實取得了平衡。因此，我們相信我們 2018 年的路線圖比以往任何時候都更加強大。我們有能力將其延續到 2019 年，使我們能夠獲得我們想要的收益率。因此，成本和支出確實符合您作為股東對我們的期望。我們相信，如果您在此時間範圍內查看其他人，如果您查看其他人並說在技術說明上改進了 70%，是的，讓我在我們進行此操作時重命名這些節點。我們一直選擇真正透明和乾淨，只是說，這是對現有技術的改進，而不是重命名。所以我們相信我們擁有這一點。現在，當我們看——及時，我們確實看到了密度。你只要拿那個組件，密度差距就會縮小一點。但那是及時的。但同樣，性能實際上是圍繞功率和性能以及架構的多個過程部分的函數。這就是為什麼我們認為我們的產品繼續領先並成為世界標準的原因。

And on the gross margin question, the strong -- both volume and ASP performance in the first quarter contributed to gross margins being 2 points ahead of kind of our expectations at the beginning of the year. So we saw that real good performance on top line flowing through in the first quarter. What we indicated for the full year, though, there's no change in our full year gross margin. That essentially is a function of continued volume and ASP strength but partially offset by yields that are improving, but not quite at the rate that we had anticipated on 10-nanometer.

在毛利率問題上，第一季度強勁的銷量和平均售價表現導致毛利率比我們年初的預期高出 2 個百分點。因此，我們在第一季度看到了真正的良好業績。不過，我們全年指出的情況是，我們的全年毛利率沒有變化。這基本上是持續銷量和 ASP 強度的函數，但部分被提高的產量所抵消，但與我們在 10 納米上預期的速度不完全一致。

And secondly, our cost associated with -- we expected, at the end of the year, that we'll have pre-PRQ reserves that will be a little bit higher as we shift into 2019. So strong first quarter, strong for the full year, but those 10-nanometer costs will be a little bit of a drag. We step back, we still look at kind of gross margins for the full year that are at the high end of kind of our historical range in the 60% to 65% range, which is good. And for us, that's despite the fact that we're getting really solid growth from our lower margin, but earnings-accretive businesses like modem and memory.

其次，與我們相關的成本——我們預計，在今年年底，隨著我們進入 2019 年，我們將擁有 PRQ 前的儲備金會略高一些。第一季度如此強勁，整個季度都很強勁年，但那些 10 納米的成本會有點拖累。我們退後一步，我們仍然著眼於全年毛利率處於我們歷史範圍的高端，在 60% 到 65% 的範圍內，這很好。對我們來說，儘管我們從較低的利潤率中獲得了真正的穩健增長，但對我們來說，這是調製解調器和內存等可增加收益的業務。

The next question comes from the line of Stacy Rasgon with Bernstein Research.

下一個問題來自 Bernstein Research 的 Stacy Rasgon。

I wanted to follow-up on that 10-nanometer point. So as the volume production pushes out into 2019, given you understand the yield issue supposedly, is this a first half kind of push out? Or does it push out into the second half? And when it actually does ramp, do you think it actually will be the current 10-nanometer process that's shipping? Or will that be like slipping out to like 10, 10 nanometers plus potentially?

我想跟進那個 10 納米點。所以隨著量產推進到 2019 年，假設你理解了產量問題，這是上半年的推進嗎？或者它會推到下半場？當它真正開始升溫時，你認為它實際上會是目前正在出貨的 10 納米工藝嗎？還是會像滑出到 10、10 納米以上一樣？

So I'm just going to correct you. You said that supposedly, we have the solutions. We do understand these things. So we do have confidence that we can go and work these issues, Stacy. Right now, as I said, we are shipping. We're going to start that ramp as soon as we think the yields are in line. So as I said, 2019. We didn't say first or second half, although we'll do it as quickly as we can based on the yield. And the last part of your question about whether -- will it be a 10 or a 10++ or a 10-plus, I think, was your question, these -- the yield improvements that we're making are just that, more focused on yield. So think of them as improvements to the various etch steps and lithography steps and cleans and things like that in order to really drive the multi-patterning and in some cases, the multi multi-patterning where we have 4, 5, 6 layers of patterning to produce a feature. It's really about that. They aren't necessarily around performance. We do have plans on 10-nanometer all ready similar to 14-nanometer, for 10-plus and 10++. And so we think all of these technologies now have multiple years of performance improvement built into them as they come off the floor.

所以我只是要糾正你。你說，據說，我們有解決方案。我們確實了解這些事情。所以我們確實有信心我們可以去解決這些問題，Stacy。現在，正如我所說，我們正在發貨。一旦我們認為收益率符合要求，我們就會開始加速。所以正如我所說，2019 年。我們沒有說上半年或下半年，儘管我們會根據產量盡快完成。你的問題的最後一部分是——我認為是 10 還是 10++ 還是 10+專注於產量。因此，將它們視為對各種蝕刻步驟和光刻步驟以及清潔等的改進，以便真正推動多重圖案化，在某些情況下，我們有 4、5、6 層圖案化的多重多重圖案化產生一個特徵。真的是這樣。它們不一定圍繞性能。我們確實有與 14 納米類似的 10 納米計劃，用於 10+ 和 10++。因此，我們認為所有這些技術現在在它們落地時都內置了多年的性能改進。

For my follow up, I wanted to ask about gross margin drivers and free cash flow drivers into 2019. We have CapEx pretty significantly outpacing depreciation at the moment. You'll have that 10-nanometer ramp kind of starting. Memory and modems probably going to be growing. And then on the free cash flow side, we've got the reversal potentially of the NAND prepayments eventually as you start shipping the NAND that you've been paid for. So how do we think about the drivers, gross margin puts and takes around those elements and maybe others as we get into -- as we go through -- get into 2019?

對於我的後續行動，我想詢問 2019 年的毛利率驅動因素和自由現金流驅動因素。目前，我們的資本支出大大超過了折舊。您將擁有 10 納米的坡道啟動。內存和調製解調器可能會增長。然後在自由現金流方面，當您開始運送已付款的 NAND 時，我們最終可能會逆轉 NAND 預付款。那麼，當我們進入 2019 年時，我們如何考慮驅動因素、毛利率和這些因素以及其他因素？

First, I'm not -- probably not throw a whole lot in 2019 as we focus on trying to execute what we believe will be an outstanding 2018. But I think there's a few dynamics that we've been wrestling with. As you know, over the last couple of years we've seen a gap between earnings and cash flow, and it's really been driven by a couple of things. One, success and by that, I mean, accelerating rates of growth and the additional capital that goes along with that growth, both CapEx and inventory levels. So those have been one of the drivers. Secondly, we brought on 10-nanometer equipment but haven't necessarily put it to use yet. So that's a cash driver without an impact on earnings. And third, memory is in the investment phase. So those 3 things have really been what's been driving the gap, and we've done a few things in light of that, that you're aware of. One, memory, we engage in the strategic supply agreements that you mentioned, which really for us is a sign that our customers are excited and committed to the technologies that we're building such that we can help -- we can use their money to help fund the scaling of the business. And we think that's a good, positive short, medium and long-term move. And the other thing, just if you think about, Stacy, kind of how we guided this year, you have earnings -- if you don't give us credit for the ICAP gains last year and strip that out, you see earnings growth that's roughly 25%, 26% and you see free cash flow growth that's in the mid-30s. So you'll start to see that gap narrowing as we go through the course of this year. And then the other thing is we're going to make a fairly significant cash tax payment in 2018 as a result of the ICAP gains from last year, and that's roughly $1.2 billion that's going to weigh on our cash flows this year. If you strip that out for a second, what you see during the course of 2018 is roughly 25% earnings growth and roughly 50% free cash flow growth, and that gap begins to narrow while we're accelerating the growth rate of the business. So those are -- that's kind of the dynamics in terms of how we're deploying capital for accelerating top line growth and the improvements on free cash flow relative to earnings per share this year. As we get through the course of 2018, we'll start to shed a little more light on what that means for 2019 later in the year.

首先，我不會 - 可能不會在 2019 年投入太多，因為我們專注於嘗試執行我們認為將是出色的 2018 年。但我認為我們一直在努力應對一些動態。如您所知，在過去幾年中，我們看到了收益和現金流之間的差距，這實際上是由幾件事驅動的。一，成功，我的意思是，加速增長率和伴隨增長而來的額外資本，包括資本支出和庫存水平。因此，這些人一直是驅動因素之一。其次，我們引進了 10 納米設備，但還沒有投入使用。因此，這是一個對收益沒有影響的現金驅動因素。第三，內存處於投資階段。所以這三件事確實是造成差距的原因，我們已經為此做了一些事情，你們都知道。一，記憶，我們參與了你提到的戰略供應協議，這對我們來說確實是一個跡象，表明我們的客戶對我們正在構建的技術感到興奮並致力於我們可以提供幫助——我們可以用他們的錢來幫助為業務擴展提供資金。我們認為這是一個好的、積極的短期、中期和長期舉措。另一件事，如果你想想，史黛西，我們今年的指導方式，你有收益——如果你不把去年的 ICAP 收益歸功於我們並將其剔除，你會看到收益增長大約 25%、26%，你會看到 30 年代中期的自由現金流增長。因此，隨著我們今年的進程，您將開始看到這種差距正在縮小。然後另一件事是，由於去年的 ICAP 收益，我們將在 2018 年支付相當可觀的現金稅，這大約是 12 億美元，這將對我們今年的現金流造成壓力。如果你把它剔除一秒鐘，你會在 2018 年看到大約 25% 的收益增長和大約 50% 的自由現金流增長，而隨著我們加快業務的增長率，這種差距開始縮小。因此，就我們如何部署資本以加速收入增長以及今年相對於每股收益的自由現金流的改善而言，這就是一種動態。隨著我們度過 2018 年的歷程，我們將在今年晚些時候開始更多地了解這對 2019 年意味著什麼。

The next question comes from the line of Chris Danely with Citigroup.

下一個問題來自花旗集團的 Chris Danely。

I guess another question on the manufacturing. Can you just talk about why the ramp in 10-nanometer, why the yields have been a little bit slower than expected? Have there been any changes in manufacturing? And then also, should we expect this to extend to future generations as well, i.e., a little bit slower than it had been in the past?

我想關於製造的另一個問題。你能談談為什麼 10 納米的斜坡，為什麼產量比預期的要慢一點嗎？製造業有沒有變化？然後，我們是否應該期望這也會擴展到後代，即比過去慢一點？

Sure. So the issues around 10 nanometers, I kind of tried to lay that out without getting too deep into the technology, but this is the last technology with -- that doesn't incorporate EUV. And what you also need to understand is that we took very aggressive goals at 10 nanometers. So if you talk about the scaling factor or think about it as the multiple at which you shrink a feature, okay, we took a target of 2.7. So you took any feature and 1 over 2.7 is the dimensional shrink that you get to this device. For example, on 14 nanometers, we took a target of 2.4. So you're almost 10% more aggressive on 10 nanometers. And if you look at what more is the industry standard, what the foundries and other players are typically doing, they're typically in that 1.5 to 2.0 range. So they're -- we're maybe 20% more aggressive. So we took very aggressive goals to hit our cost targets and where we want the technology to be. And that, combined with end-of-life of emergent scanner before we hit EUV, has just created something that's a little bit more difficult. And so that's why I have the confidence that this is not something we're shipping, that transistors work. We know the performance is in line. So it's really just about getting the defects and the cost in line to where we want. As far as what does that imply for future technologies, we made a lot of changes at 7 nanometers. 7 nanometers currently is the first technology forecasted to implement EUV. So that immediately makes the lithography system different. We're going back to a more standard for us compaction number of 2.4 So that makes it a little bit easy. We think we've bit off a little too much in this case. And it may not seem like a lot, but 10% can make a lot of difference in this kind of the world. And thirdly, we are using some very unique packaging technologies and such that allow us that 7 nanometers and beyond, we really move into a world where you're not going to look at any piece of silicon as being a single node. You're going to use what we're going to call heterogeneous techniques that allow us to use silicon for multiple nodes. So you may use course from 7 nanometers and IP from 14 nanometers and even as far back as 22 nanometers for the parts that don't need the high performance. And we're able to put those together and make them perform and behave like a single piece of silicon in the package. So really, 7 nanometers is quite a bit different, and so I think as a result, we don't expect to see these kinds of impacts on 7 nanometers.

當然。所以關於 10 納米的問題，我試圖在不深入研究技術的情況下解決這個問題，但這是最後一項沒有包含 EUV 的技術。您還需要了解的是，我們在 10 納米處採取了非常激進的目標。因此，如果您談論縮放因子或將其視為縮小特徵的倍數，好吧，我們的目標是 2.7。因此，您採用了任何功能，並且 2.7 上的 1 是您獲得此設備的尺寸縮小。例如，在 14 納米上，我們的目標是 2.4。所以你在 10 納米上的攻擊性幾乎提高了 10%。如果你看看行業標準還有什麼，代工廠和其他參與者通常在做什麼，他們通常在 1.5 到 2.0 的範圍內。所以他們——我們可能會更有攻擊性20%。因此，我們採取了非常積極的目標來實現我們的成本目標以及我們希望技術達到的目標。而且，再加上我們到達 EUV 之前緊急掃描儀的生命週期結束，剛剛創造了一些更困難的東西。所以這就是為什麼我有信心這不是我們正在運送的東西，晶體管可以工作。我們知道性能是一致的。因此，這實際上只是將缺陷和成本與我們想要的一致。至於這對未來技術意味著什麼，我們在 7 納米上做了很多改變。 7 納米目前是第一個預計實現 EUV 的技術。因此，這立即使光刻系統與眾不同。我們將回到更標準的 2.4 壓縮數，這讓它變得更容易一些。我們認為在這種情況下我們有點過分了。它可能看起來不多，但 10% 可以在這種世界中產生很大的不同。第三，我們正在使用一些非常獨特的封裝技術，從而使我們能夠實現 7 納米及以上，我們真正進入了一個您不會將任何矽片視為單個節點的世界。您將使用我們將稱為異構技術的技術，允許我們將矽用於多個節點。因此，對於不需要高性能的部件，您可以使用 7 納米的課程和 14 納米甚至 22 納米的 IP。我們能夠將它們組合在一起，使它們的性能和行為就像封裝中的單片矽一樣。所以真的，7 納米有很大的不同，所以我認為結果是，我們不希望看到對 7 納米的這些影響。

Great. For my follow up, I know in the presentation you mentioned that adjacency ramps will be responsible for some of the gross margins being down in Q2. Does that have any impact on gross margin for the rest of the year? Or are you assuming that data center growth is going to slow down in the second half of the year and that's another reason why the gross margin hasn't moved up? Or is it entirely the 10-nanometer issue?

偉大的。對於我的跟進，我知道您在演示文稿中提到鄰接坡道將導致第二季度的一些毛利率下降。這對今年剩餘時間的毛利率有影響嗎？或者您是否假設數據中心增長將在下半年放緩，這是毛利率沒有上升的另一個原因？還是完全是 10 納米的問題？

No, it's -- maybe all 3. First, we do expect the adjacencies throughout the course of the year to continue to grow faster than the rest of the business, if you will. So that will have a compression kind of effect throughout the course of the year. Secondly, yes, 10-nanometer will be a headwind. And third, for data center growth, while we're kind of expecting strong growth through the first half of the year, the second half of the year implied in our guidance is a deceleration. And if you put it in the context of kind of the updated guide, we have data-centric growth going from mid-teens to higher teens. And you can attribute virtually all of that to DCG because obviously it's the biggest component. But we do expect there to be deceleration for DCG growth from first half to second half for sure. We hope we're wrong, but where we sit right now, we see the trends continuing to Q2. But we'll have tougher comps. We'll have tougher competition going into the second half, and we're going to wait to July to see kind of how we see the trends we've experienced through the first 4 months of the year play out for the second half.

不，它 - 可能是全部 3 個。首先，如果您願意的話，我們確實預計在整個一年中的相鄰業務將繼續比其他業務增長更快。因此，這將在整個一年中產生一種壓縮效果。其次，是的，10 納米將是一個逆風。第三，對於數據中心的增長，雖然我們預計上半年會有強勁的增長，但我們的指導中暗示的下半年是減速。如果你把它放在更新指南的背景下，我們會發現以數據為中心的增長從十幾歲到十幾歲。您幾乎可以將所有這些都歸功於 DCG，因為它顯然是最大的組成部分。但我們確實預計 DCG 從上半年到下半年的增長肯定會減速。我們希望我們錯了，但我們現在所處的位置，我們看到趨勢持續到第二季度。但我們會有更艱難的比賽。進入下半年，我們將面臨更激烈的競爭，我們將等到 7 月，看看我們如何看待今年前 4 個月所經歷的趨勢在下半年發揮作用。

The next question comes from the line of Chris Caso with Raymond James.

下一個問題來自 Chris Caso 和 Raymond James 的台詞。

Just first question is on CapEx that's been coming up a bit. If you could talk a little bit about the incremental growth in CapEx, what that's associated with. And are there any CapEx effects associated with the changes in the ramp up of 10-nanometer?

第一個問題是關於資本支出的問題。如果您可以談談資本支出的增量增長，那與什麼相關聯。是否存在與 10 納米增長變化相關的資本支出效應？

Yes, the -- just the CapEx that we took up, $0.5 billion is really a function of the incremental $2.5 billion of revenue. So of course, when we came into the year, we guided a logic CapEx of roughly $10.5 billion, and we had full year revenue of $65 billion. So we've taken $65 billion up to 67 50. That's going to require roughly $0.5 billion additional CapEx for the second half of the year and as we go into 2019. So it's the best I've ever felt about a CapEx increase, and it's a result of $2.5 billion more revenue and that the CapEx increase, as we indicated, will generate an additional $1.5 billion of free cash flow as well.

是的 - 只是我們佔用的資本支出，5 億美元實際上是增加的 25 億美元收入的函數。因此，當然，當我們進入這一年時，我們指導的邏輯資本支出約為 105 億美元，全年收入為 650 億美元。因此，我們已將 650 億美元增加到 67 50。這將需要在今年下半年和進入 2019 年時增加大約 5 億美元的資本支出。所以這是我對資本支出增加的最好感受，並且這是收入增加 25 億美元的結果，正如我們所指出的，資本支出的增加也將產生額外的 15 億美元的自由現金流。

All right. Great. And as a follow up, perhaps you can give a bit more color on the expectations on memory as you go through the year. I know you talked about that being profitable and I think consistent with what you said -- what you guys said last quarter. Has there been any changes in your outlook for the year? And if you could talk a little bit about what's framed your expectations as you look through the year for memory.

好的。偉大的。作為後續行動，也許你可以在這一年中對記憶的期望給出更多的色彩。我知道你談到了盈利，我認為這與你所說的一致——你們上個季度所說的。您對這一年的展望有什麼變化嗎？如果你能談談在你回顧這一年的記憶時是什麼構成了你的期望。

First, no real changes. As Brian mentioned, it's our first $1 billion order in Q1. We feel good about the demand that we're seeing. Demand -- gigabyte demand is relatively strong. Our cost per gigabyte coming out of our Dalian fab continues to trend down. And at the same time, we see ASPs were down a bit. But as we go through the rest of the year, we see demand and supply to be relatively well balanced. We are ramping [mod a] in Dalian. So that is in the early stages of the ramp that's costing a little bit. Continued gigabyte demand, continuing to scale the Dalian fab and continuing to come down the gigabyte -- the cost per gigabyte curve are all contributing to what we believe will be a continued growth and profitability for the business for the full year.

首先，沒有真正的變化。正如布賴恩所說，這是我們第一季度的第一個 10 億美元訂單。我們對我們看到的需求感覺良好。需求——技嘉需求比較旺盛。我們大連工廠的每 GB 成本繼續呈下降趨勢。同時，我們看到平均售價有所下降。但隨著我們度過今年餘下的時間，我們看到供需相對平衡。我們正在大連加速 [mod a]。所以這是在斜坡的早期階段，這需要一點成本。持續的千兆字節需求，繼續擴大大連晶圓廠的規模並繼續降低千兆字節——每千兆字節的成本曲線都有助於我們認為全年業務的持續增長和盈利能力。

And maybe the only thing I'd add to that is as Bob mentioned in his remarks, our 64 Tier product, we -- I still believe gives us really a leading-edge product and also a very good cost relative to the market. So as we ramp that technology in Dalian at 64 Tiers, we believe our costs are very competitive relative to the rest of the market.

也許我唯一要補充的是，正如 Bob 在他的講話中提到的，我們的 64 層產品，我們——我仍然相信，我們提供了真正領先的產品，而且相對於市場而言，成本也非常好。因此，當我們在大連以 64 層級提升該技術時，我們相信我們的成本相對於其他市場而言非常具有競爭力。

The next question comes from the line of John Pitzer with Crédit Suisse.

下一個問題來自瑞士信貸的 John Pitzer。

Brian, I think within DCG, the cloud hyperscale dynamics are kind of well understood by investors. 90 days ago, I think what surprised everybody, probably including yourselves, was just the strength of enterprise in the December quarter. And I think when you reported December, you were reluctant to call that a trend and you wanted to get some more data points. I'm kind of curious as to kind of what the view of enterprise is now 90 days later. And specifically, a couple of your key software partners last year in Microsoft and VMware finally brought out kind of their hybrid cloud software stack solution, and I'm wondering if that's actually been the driver of some of this pent-up demand in the enterprise. And how sustainable do you think it is?

布賴恩，我認為在 DCG 中，雲的超大規模動態已經被投資者很好地理解了。 90 天前，我想讓包括你們自己在內的所有人都感到驚訝的，僅僅是 12 月季度的企業實力。而且我認為當您報告 12 月時，您不願意將其稱為趨勢，並且您希望獲得更多數據點。我有點好奇 90 天后企業現在的看法是什麼。具體來說，去年微軟和 VMware 的幾個關鍵軟件合作夥伴終於推出了他們的混合雲軟件堆棧解決方案，我想知道這是否真的是企業中一些被壓抑的需求的驅動力.你認為它的可持續性如何？

Yes, it's a great question, John. What I would tell you is clearly, as we look out into Q2, we're expecting the same kind of positive trend on enterprise for the second quarter. I think as we look at the long term though, that trend that enterprise should decline in that low single digit and it drives and helps fuel the growth of cloud, not all of those are drivers of the growth of cloud, that -- those workloads are moving over to the cloud base continues. I think you're right. Products like Microsoft Azure and others where you can be a hybrid, Azure on-prem versus Azure on cloud, are great examples how, I think, that low single digits is sustainable over the long haul. But I just don't see that trend. Again, I try and look at these businesses not over the quarter or even 1 to 2 quarters, but really thinking about how am I going to invest over the next 2 to 5 years. I got to look at that and say that trend's probably likely to continue. Now for us, you also need to understand that those other segments, so data center, the cloud and like networking and comms, as I look at the Data Center Group are now well over 50% of the revenue of that segment. So we are less and less impacted, I'd say, by the enterprise. If you go back when I started as CEO, enterprise was 60%, 70% of the business. And so we swung wildly by that. It's kind of the other way around now where the cloud and networking and storage are now that 60% to 70% growing to their right and the enterprise is less and less. So the other thing you need to realize, John, is we're more driven by what that cloud is doing anyway.

是的，這是一個很好的問題，約翰。我要告訴你的是，當我們展望第二季度時，我們預計第二季度企業將出現同樣的積極趨勢。我認為，從長遠來看，企業應該以低個位數下降的趨勢推動並幫助推動雲計算的增長，並非所有這些都是雲計算增長的驅動力，那些工作負載正在遷移到雲基礎繼續。我覺得你是對的。像 Microsoft Azure 和其他可以混合的產品，Azure on-prem 與雲上的 Azure，是很好的例子，我認為，低個位數是如何長期可持續的。但我只是看不到這種趨勢。再一次，我嘗試著眼於這些業務，而不是超過一個季度甚至 1 到 2 個季度，而是真正考慮我將如何在未來 2 到 5 年內進行投資。我不得不看一下，然後說這種趨勢可能會持續下去。現在對我們來說，您還需要了解其他細分市場，如數據中心、雲以及網絡和通信等，正如我所看到的，數據中心集團現在佔該細分市場收入的 50% 以上。因此，我想說，企業對我們的影響越來越小。如果你回到我剛開始擔任 CEO 的時候，企業佔業務的 60%、70%。所以我們瘋狂地搖擺不定。現在的情況正好相反，雲、網絡和存儲現在有 60% 到 70% 向右增長，而企業越來越少。因此，約翰，您需要意識到的另一件事是，無論如何，我們更受雲正在做什麼的驅動。

That's helpful. And as my follow up to Bob, just kind of a multipart question on the guide for Q2 and the full year. First, was the 606 impact embedded in the original March quarter guidance? Is that the only quarter where you'll have a 606 impact? Second, is Wind River now out of the Q2 and full year guide, or is that still in it? And kind of how big is that business? And then third, when you look at Q2 specifically, it just looks like the operating income beat seems a lot larger than the EPS beat. Is there anything going on below the line other than the tax rates that you guided to that can explain that?

這很有幫助。作為我對 Bob 的跟進，只是關於第二季度和全年指南的多部分問題。首先，606 影響是否包含在最初的 3 月季度指導中？那是您將產生 606 影響的唯一季度嗎？其次，Wind River 現在是否已超出 Q2 和全年指南，還是仍在其中？那業務有多大？第三，當你具體看第二季度時，看起來營業收入的表現似乎比每股收益的表現要大得多。除了您指導的稅率之外，還有什麼可以解釋的嗎？

Yes, great question. First, 606, what we expect for the full year, we had a strong benefit in the first quarter and roughly half of that unwinds during the course of the year. So it contribute to growth in Q1. It will unwind itself throughout the course of the year. So full year impact will be likely -- at this stage of the game, we get more around $200 million to $250 million, but it unwinds through the next several quarters. I think your second question, John, was Wind River. Our assumptions are that we will complete the sale of that business at the end of the second quarter. So it's in our second quarter guide, but it's a component of the first half to second half deceleration. The third question, I think it relates to in the first quarter we had good volume, operating margin flow-through to EPS. In the second quarter, the flow-through is not as rich. And the fundamental reason is we have some below-the-line charges associated with, a, the 2039 convertible securities that we have outstanding that have a exchange feature associated with them. And as people, as we hit a certain stock price, our holders can exercise that exchange feature. The implications are there's a noncash charge associated with that, which goes through our interest and other line that's negative. The good aspects of it is all else equal, it reduces our outstanding, our diluted shares and we avoid a coupon going forward. But that will have -- as more people exercise that exchange feature, we'll see that noncash charge below the line. So that's causing a little bit of a drag on the operating income growth flowing through to the EPS in Q2.

是的，很好的問題。首先，606 是我們對全年的預期，我們在第一季度獲得了強勁的收益，其中大約一半在一年中解除。因此，它有助於第一季度的增長。它將在一年中自行放鬆。因此，全年的影響可能會發生——在遊戲的這個階段，我們將獲得大約 2 億至 2.5 億美元的更多收益，但它會在接下來的幾個季度中放鬆。我認為你的第二個問題，約翰，是風河。我們的假設是我們將在第二季度末完成該業務的出售。所以它在我們的第二季度指南中，但它是上半年到下半年減速的一個組成部分。第三個問題，我認為這與第一季度我們的銷量、營業利潤率流向每股收益有關。第二季度，流通量沒有那麼豐富。根本原因是我們有一些線下費用與我們擁有的未償付的 2039 年可轉換證券相關，這些證券具有與之相關的交換功能。作為人，當我們達到一定的股價時，我們的持有人可以行使這種交換功能。其含義是有與此相關的非現金費用，它通過我們的利益和其他負面的線。它的好的方面是其他方面都是平等的，它減少了我們的流通股、稀釋股，我們避免了未來的票息。但這將具有 - 隨著越來越多的人使用該交換功能，我們將看到該線下方的非現金費用。因此，這對第二季度流向每股收益的營業收入增長造成了一點拖累。

And our next question will come from the line of Timothy Arcuri from UBS.

我們的下一個問題將來自瑞銀的蒂莫西·阿庫裡（Timothy Arcuri）。

I actually have a 2-part question on 10-nano. The issues seem to be going on now for some time, and it's almost as if the design libraries or something are flawed. And so I guess the first question is why not skip 10-nanometer and go directly to 7? You guys have a lot of EUV experience and it's going to cut out a lot of the multi-patterning layers. So that's the first question. And number two, the real question is that if you did that, would that be a net drag to gross margin looking out because you never really monetized 10-nanometer?

我實際上有一個關於 10 納米的兩部分問題。這些問題似乎已經持續了一段時間，就好像設計庫或其他東西有缺陷一樣。所以我想第一個問題是為什麼不跳過 10 納米直接進入 7 納米？你們有很多 EUV 經驗，它會削減很多多圖案層。所以這是第一個問題。第二，真正的問題是，如果你這樣做了，是否會因為你從未真正將 10 納米技術貨幣化而對毛利率造成淨拖累？

Okay. So let me try and answer your question. So no, there's nothing wrong with the design libraries or anything like that. I mean, the proof of that is that we're shipping products. So if there were basic functionality issues like that, you wouldn't be able to produce and ship a product. Again, as I said, this is all around how many layers are on multi-patterning and kind of the end-of-life of the emergent for the critical later. The second part of your question was would it benefit to just skip to 7 nanometers and would that have an effect on the capital or the gross margin. The simple answer is no, I don't think that's a good idea. The best answer is to fix -- there's a lot of learning that will happen that we can carry forward in the 7 nanometers, just like we carried from 14 to 10. The other thing is that we still hold roughly 80% of our capital equipment is fungible to the next node or backwards to the prior node. And so that's why as we shifted 10 and 14, we're able to do that without shifting our capital expenditures greatly. We're able to just move the capacity back and forth. The same thing is going to happen between 10 and 7. So you'll have some percentage, and it's always based on demand and how fast things are ramping and all of that. But the equipment will be fungible for the most part between 10 and 7 as well. But no, the right thing to do is exactly what we're doing. This is a unique opportunity we have. There's a lot, lot more performance in 14. We can keep driving that. We'll fix the yield issues. If 10, it's going to have a 10, a 10-plus, a 10++, you can see a lot of products and a lot of performance out of that technology.

好的。所以讓我試著回答你的問題。所以不，設計庫或類似的東西沒有任何問題。我的意思是，這證明是我們正在運送產品。因此，如果存在類似的基本功能問題，您將無法生產和交付產品。同樣，正如我所說，這完全是關於多重模式有多少層，以及後來關鍵的緊急事件的生命終結。您問題的第二部分是跳到 7 納米是否有好處，這會對資本或毛利率產生影響。簡單的答案是否定的，我認為這不是一個好主意。最好的答案是修復——我們可以在 7 納米上繼續學習，就像我們從 14 到 10 一樣。另一件事是我們仍然持有大約 80% 的資本設備可互換到下一個節點或倒退到前一個節點。這就是為什麼當我們改變 10 和 14 時，我們能夠在不大幅改變資本支出的情況下做到這一點。我們能夠來回移動容量。同樣的事情將在 10 到 7 之間發生。所以你會有一些百分比，它總是基於需求以及事情進展的速度等等。但該設備在 10 到 7 之間的大部分時間也是可替代的。但是不，正確的做法正是我們正在做的事情。這是我們擁有的獨特機會。 14 有很多很多的性能。我們可以繼續推動它。我們將解決產量問題。如果是 10，它將有 10、10+、10++，您可以看到該技術的很多產品和很多性能。

And the next question comes from the line of Romit Shah with Nomura Instinet.

下一個問題來自 Romit Shah 與 Nomura Instinet 的對話。

Brian, I wanted to ask you about China. Your filings indicate that Mainland China was about 20-plus percent of revenue in 2017, and I have 2 questions. One, does that figure represent your exposure to the domestic vendors in China? And I guess just in light of the current environment between the U.S. and China, there's reports now of potential ban beyond ZTE. How concerned are you as it relates to the impact to Intel?

布萊恩，我想問你關於中國的事。您的文件顯示，中國大陸在 2017 年約佔收入的 20% 以上，我有兩個問題。一，這個數字是否代表了您對中國國內供應商的了解？而且我想，鑑於目前中美之間的環境，現在有報導稱中興通訊可能會被禁止。您對英特爾的影響有多擔心？

So yes, that number is much broader. So that would be -- if you think about it, so everything from shipments in companies like ZTE or Huawei that are more domestically oriented, although Huawei ships around the world now, it goes to Lenovo and companies like that, spread charm, all of those companies now, if you look at Chinese companies, very few are holdings within just China. They're almost all shipping products and selling across the world. So that's -- that number is really representative of all of the companies that are building within China. Our view is that China is an important market as you just described, right, 20-something-plus percent. It's one of our fastest-growing segments as well. It's important to us, and we're counting on our leaders and the leaders of the world to go resolve these issues. We believe in fair trade. We believe that countries and companies need to be able to play in markets fairly and compete, and we're counting on this getting worked out. That's very important to us.

所以是的，這個數字要廣泛得多。所以這就是——如果你想一想，從像中興通訊或華為這樣更面向國內的公司的出貨量，雖然華為現在在世界各地出貨，它都流向了聯想和類似的公司，傳播魅力，所有的現在那些公司，如果你看中國公司，很少有人在中國境內持股。他們幾乎都是運送產品並在世界各地銷售。這就是——這個數字真正代表了在中國建立的所有公司。我們的觀點是，正如你剛才所說，中國是一個重要的市場，對，20% 以上。這也是我們增長最快的細分市場之一。這對我們很重要，我們指望我們的領導人和世界領導人解決這些問題。我們相信公平貿易。我們認為，國家和公司需要能夠在市場上公平競爭並參與競爭，我們希望這能得到解決。這對我們來說非常重要。

Okay. Great. And then Bob, I'm curious if you'll shed more light on longer-term spending targets. But as we build our models for '19, do you think it's reasonable to assume that you can drive additional operating leverage beyond 2018?

好的。偉大的。然後鮑勃，我很好奇你是否會更多地了解長期支出目標。但是，當我們為 19 年構建模型時，您認為假設您可以在 2018 年之後推動額外的運營槓桿是否合理？

You're right. I will shed more light on that later. No, but I think, look, the trends that you've seen over the last couple of years is in -- it's kind of how we frame things back at our Analyst Day early last year, I guess. And that is that we're going to see an expanded TAM and with that expanded TAM, accelerating growth in areas that have lower gross margins. And that we expect over time that there will be a modest degradation in gross margins as a result of growing earnings in different segments. But at the same time, we've said that, that gross margin modest erosion, we believe, will be offset by continued -- both continuing to invest in the critical priorities, but getting leverage on our existing spending base. So with that, I think you're going to have a natural offset, and we're 2 years ahead of our targets to get to 30%. We're excited about the accelerating growth of the company, and we do believe that as we continue to accelerate growth and invest in key priorities that our leverage on spending continue to come down.

你是對的。稍後我將對此進行更多說明。不，但我認為，看，你在過去幾年中看到的趨勢是——我猜，這就是我們在去年年初的分析師日回顧事情的方式。那就是我們將看到擴大的 TAM 和擴大的 TAM，加速毛利率較低的地區的增長。我們預計隨著時間的推移，由於不同領域的收益增長，毛利率將略有下降。但與此同時，我們已經說過，我們認為，毛利率的適度下降將被持續的抵消——既繼續投資於關鍵優先事項，又利用我們現有的支出基礎。所以有了這個，我認為你會有一個自然的抵消，我們比我們的目標提前 2 年達到 30%。我們對公司的加速增長感到興奮，我們確實相信，隨著我們繼續加速增長並投資於關鍵優先事項，我們的支出槓桿將繼續下降。

Thanks, Romit, and thank you all for joining us. Operator, please go ahead and wrap up the call.

謝謝，羅米特，謝謝大家加入我們。接線員，請繼續結束通話。

Thank you. Ladies and gentlemen, this does conclude today's conference. You may all disconnect. Everyone, have a great day.

謝謝你。女士們，先生們，今天的會議到此結束。你們都可以斷開連接。大家，有一個美好的一天。