英特爾 (INTC) 2019 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the First Quarter 2019 Intel Corporation Earnings Conference Call. (Operator Instructions) As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. Mark Henninger, Head of Investor Relations. Please go ahead, sir.

各位女士、先生，大家好，歡迎參加英特爾公司2019年第一季財報電話會議。（操作說明）提醒各位，今天的節目正在錄製中。現在，我謹向大家介紹今天節目的主持人，投資者關係主管馬克‧亨寧格先生。請繼續，先生。

Thank you, operator, and welcome, everyone, to Intel's Second Quarter 2018 (sic) [First Quarter 2019] Earnings Conference Call. By now, you should have received a copy of our earnings release and the earnings presentation. If you've not received both documents, they're available on our Investor website, intc.com. The earnings presentation is also available in the webcast window for those joining us online.

謝謝接線員，歡迎各位參加英特爾 2018 年第二季（原文如此）[2019 年第一季] 財報電話會議。現在，您應該已經收到我們的獲利報告和獲利簡報了。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。在線上觀看的朋友也可以透過網路直播視窗觀看業績報告。

I'm joined today by Bob Swan, our interim CEO and Chief Financial Officer; Murthy Renduchintala, Group President of the Technology, Systems Architecture and Client Group and Chief Engineering Officer; as well as Navin Shenoy, Executive Vice President and General Manager of the Data Center Group. In a moment, we'll hear brief remarks from Bob followed by Q&A.

今天與我一同出席的有：臨時執行長兼財務長鮑伯‧斯旺；技術、系統架構與客戶集團總裁兼首席工程長穆爾蒂‧倫杜欽塔拉；以及資料中心集團執行副總裁兼總經理納文‧舍諾伊。稍後，我們將聽到鮑勃的簡短講話，然後是問答環節。

(technical difficulty)

（技術難題）

We're having technical difficulties. Let me jump back in here. I'm joined today by our CEO, Bob Swan; our CFO, George Davis; and in a moment, we'll hear brief remarks from both of them, followed by the Q&A.

我們遇到了技術故障。讓我再插一句。今天與我一同出席的有我們的首席執行官鮑勃·斯旺和首席財務官喬治·戴維斯；稍後我們將聽到他們二人的簡短講話，之後是問答環節。

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。

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

簡單提醒一下，本季我們提供了GAAP和非GAAP財務指標。今天，我們將在介紹我們的合併績效時，談到非GAAP財務指標。intc.com 上提供的收益簡報和收益發布包括完整的 GAAP 和非 GAAP 調整表。

With that, let me hand it over to Bob.

那麼，就讓我把麥克風交給鮑伯吧。

Thanks, Mark. With the interim introduction, I thought on our outlook I was getting demoted already. But look, coming off a record 2018, our top line results came in slightly higher than expectations, with upsides in the PC and IoT segments, offset by incremental NAND pricing weakness. Total revenue of $16.1 billion was flat year-over-year, as our PC-centric business grew 4% and our data-centric businesses were down 5%. The team executed well, though underlying trends are concerning, and as a result, we've revised our expectations down for the full year.

謝謝你，馬克。透過這次過渡介紹，我認為按照目前的情況，我可能已經被降職了。但是，在經歷了創紀錄的 2018 年之後，我們的營收業績略高於預期，PC 和物聯網領域的成長被 NAND 價格的疲軟所抵消。總收入為 161 億美元，與上年持平，其中以 PC 為中心的業務增長了 4%，而以數據為中心的業務下降了 5%。團隊執行得不錯​​，但潛在趨勢令人擔憂，因此，我們下調了全年的預期。

I'll give you some insight into the customer trends informing our outlook, but first, I'd like to take a few minutes to recap the progress we've made over the first quarter. It's been just under 3 months since I was honored with the best job in the world. At that time, I said that our leadership team would focus relentlessly on delivering for our customers to take advantage of the biggest opportunity in our company's history. We're making important progress by intensifying our focus in 3 key areas: expanding our TAM, accelerating innovation and improving our execution while evolving our culture. I'd like to spend a few minutes talking about our philosophy and progress in each of those areas.

我將向大家介紹一些影響我們展望的客戶趨勢，但首先，我想花幾分鐘時間回顧我們在第一季的進展。距離我榮幸地獲得世界上最好的工作已經過去了不到三個月。當時我說過，我們的領導團隊將全力以赴為客戶服務，抓住公司史上最大的機會。我們透過加強對以下三個關鍵領域的關注，取得了重要進展：擴大我們的目標市場、加速創新和改進執行力，同時發展我們的企業文化。我想花幾分鐘時間談談我們在這些領域的理念和進展。

First, expanding our TAM. We are transforming from a PC-centric company to a data-centric company, and our ambitions are bigger than they've ever been. Our aim is to identify and capitalize on key technology inflections that set us up to play a larger role in our customers' success while improving returns for our owners. You can see the impact of this approach in our Q1 execution.

首先，擴大我們的潛在市場規模。我們正在從一家以個人電腦為中心的公司轉型為以數據為中心的公司，我們的雄心壯志也比以往任何時候都更遠。我們的目標是發現並利用關鍵的技術變革，從而在客戶的成功中發揮更大的作用，同時提高股東的回報。從我們第一季的業績中可以看到這種方法的影響。

For example, our first-ever data-centric portfolio launch marked an important milestone in our efforts to capitalize on the AI opportunity and undisputed technology inflection. Our new second-generation Xeon Scalable is the only processor in the industry with built-in artificial intelligence acceleration. Not only did we deliver a 14x generation-over-generation performance improvement, but we also showed CPU performance beating GPU performance on major AI workloads like recommendation engines. And we worked closely with the software industry ahead of the launch to deliver a great out-of-the-box experience for customers like Siemens. They're collaborating with us on a breakthrough AI-based cardiac MRI model. This application has the potential to provide real-time diagnosis using the DL Boost technology in our newest Xeon Scalable processor.

例如，我們首次推出以數據為中心的投資組合，標誌著我們在利用人工智慧機會和無可爭議的技術變革方面邁出了重要一步。我們全新推出的第二代至強可擴充處理器是業界唯一一款內建人工智慧加速功能的處理器。我們不僅實現了 14 倍的世代效能提升，而且還證明了 CPU 在推薦引擎等主要 AI 工作負載上的效能優於 GPU。在產品發布之前，我們與軟體產業密切合作，為像西門子這樣的客戶提供出色的開箱即用體驗。他們正與我們合作開發一種突破性的基於人工智慧的心臟磁振造影模型。該應用程式有望利用我們最新款 Xeon 可擴展處理器中的 DL Boost 技術提供即時診斷。

Another TAM-expanding business that continues to gain traction is Mobileye, with 8 new global ADAS designs in the first quarter alone, including our first win in India. Mobileye's real-time crowd-sourced mapping technology, Road Experience Management or REM, continues to build momentum with a major North American automaker adopting this breakthrough data-centric capability. Autonomous driving is a technology inflection that we're ready to lead.

另一家不斷擴大市場規模並持續獲得發展動力的企業是 Mobileye，僅在第一季就獲得了 8 項新的全球 ADAS 設計，其中包括我們在印度的首次成功案例。Mobileye 的即時眾包地圖技術 Road Experience Management (REM) 正在不斷發展壯大，一家北美大型汽車製造商也採用了這項突破性的以數據為中心的技術。自動駕駛是一項技術變革，我們已準備好引領這項變革。

2019 will be a foundational year for another disruptive technology, 5G. As you know, we recently sharpened our 5G focus. When it became apparent that we don't have a clear path to profitability in 5G smartphone modems, we acted. We are now winding down that business and conducting a strategic assessment of 5G modems for the PC and IoT sectors while continuing to meet our current 4G customer commitments. By acting now, we focus our 5G efforts on the transformation of the wireless network and edge infrastructure, where we have a clear technology advantage, market share to win and a strategic role to play with customers.

2019 年將是另一項顛覆性技術——5G——奠定基礎的一年。如您所知，我們最近加大了對 5G 的關注。當我們發現 5G 智慧型手機數據機沒有明確的獲利途徑時，我們就採取了行動。我們現在正在逐步結束這項業務，並對面向 PC 和物聯網領域的 5G 數據機進行策略評估，同時繼續履行我們對現有 4G 客戶的承諾。透過現在採取行動，我們將 5G 工作重點放在無線網路和邊緣基礎設施的轉型上，因為我們在這些領域擁有明顯的技術優勢、可以贏得的市場份額以及可以與客戶共同發揮的戰略作用。

At Mobile World Congress, we demonstrated a range of 5G products under development, including the 5G-ready N3000 FPGA acceleration card and the new 10-nanometer-based Snow Ridge network SoC for use in 5G base stations. As networks cloudify, Intel is in a great position to win in this base station segment, where we expect to grow to 40% market segment share by 2022. The vast majority of the 5G market opportunity and profit is in the transformation of network and edge infrastructure, where we are now laser focused.

在世界行動通訊大會上，我們展示了一系列正在開發的 5G 產品，包括支援 5G 的 N3000 FPGA 加速卡和用於 5G 基地台的基於 10 奈米製程的新型 Snow Ridge 網路 SoC。隨著網路雲端化，英特爾在這個基地台領域處於有利地位，我們預計到 2022 年，其市場份額將增長至 40%。5G 市場的大部分機會和利潤都體現在網路和邊緣基礎設施的轉型中，而這正是我們目前重點關注的領域。

Next, accelerating innovation. Successfully competing in a bigger TAM requires a broad range of products and technologies. Only Intel has the breadth of IP to deliver leadership products across increasingly diverse workloads for the data-centric era. Harnessing data for discovery, invention and business value is not a one-size-fits-all computing challenge. That's why we are investing in 6 important pillars of innovation: process technology, architecture, memory, interconnect, security features and software. Already this year, we've introduced incredible examples of this approach to innovation across the business. Let me take a minute to talk about a few.

其次，加速創新。要在更大的市場規模中成功競爭，需要廣泛的產品和技術。只有英特爾擁有如此廣泛的智慧財產權，才能在以數據為中心的時代，為日益多樣化的工作負載提供領先的產品。利用數據進行發現、發明和創造商業價值並非一成不變的計算挑戰。因此，我們正在投資六大創新支柱：製程技術、架構、記憶體、互連、安全特性和軟體。今年以來，我們已經在公司內部推出了許多運用這種創新方法的絕佳案例。讓我花點時間談談其中幾個方面。

We are currently architecting what we expect will be the United States' first exascale supercomputer for the U.S. Department of Energy's Argonne National Laboratory. This supercomputer, called Aurora, will be delivered in 2021 and powered by Intel technologies designed specifically for the convergence of artificial intelligence and high-performance computing. These include a future generation of the Intel Xeon Scalable processor, Intel's Xe compute architecture, a future generation of Optane persistent memory and Intel's One API software. It's a great example of how our data-centric products architected together can deliver technology breakthroughs for our customers.

我們目前正在為美國能源部阿貢國家實驗室設計我們預期將是美國第一台百億億次級超級電腦。這款名為 Aurora 的超級電腦將於 2021 年交付，並採用專為人工智慧和高效能運算融合而設計的英特爾技術。其中包括下一代英特爾® 至強® 可擴充處理器、英特爾® Xe® 運算架構、下一代傲騰® 持久性記憶體和英特爾® One API 軟體。這是一個很好的例子，說明我們以資料為中心的產品架構如何為客戶帶來技術突破。

We are also accelerating innovation in our PC-centric business. For example, our team is hard at work with our OEM customers to define and deliver a stunning new class of next-generation laptops. We call this Project Athena, and the first of these sleek, beautiful designs are coming in the second half of 2019. And just this week, we launched the most powerful generation of Intel Core mobile processors ever, designed for gamers and content creators.

我們也在加速推動以個人電腦為中心的商業創新。例如，我們的團隊正與我們的 OEM 客戶緊密合作，共同定義和交付令人驚豔的新一代筆記型電腦。我們稱之為“雅典娜計畫”，首批時尚精美的設計將於 2019 年下半年推出。就在本週，我們發布了有史以來最強大的英特爾酷睿行動處理器，專為遊戲玩家和內容創作者而設計。

On the process technology front, our teams executed well in Q1 and our velocity is increasing. We remain on track to have volume client systems on shelves for the holiday selling season. And over the past 4 months, the organization drove a nearly 2x improvement in the rate at which 10-nanometer products moved through our factories.

在製程技術方面，我們的團隊在第一季表現出色，生產速度正在加快。我們仍按計畫推進，確保在假期銷售季前將大量客戶系統上架銷售。在過去的 4 個月裡，該組織使 10 奈米產品在我們工廠的生產速度提高了近 2 倍。

Finally, execution and culture. This is about concentrating our resources on the vital few programs that will have an impact on our customers' success and our owners' return, rather than the trivial many. Over the last couple of years, that focus has resulted in exiting McAfee and wearables business, shutting down Saffron and divesting Wind River. And our spending as a percentage of revenue has gone from approximately 36% to about 30% this quarter. It has allowed us to invest more of our resources, and just as importantly, our collective attention and focus, where it really counts. By doing fewer things, we'll execute better at the things that matter most.

最後，是執行和文化。這指的是將我們的資源集中投入到少數幾個對客戶的成​​功和所有者的回報產生影響的關鍵項目中，而不是投入到許多無關緊要的項目中。過去幾年，這種專注促使公司退出了 McAfee 和穿戴式裝置業務，關閉了 Saffron，並剝離了 Wind River。本季度，我們的支出佔收入的比例從約 36% 下降到約 30%。這使我們能夠將更多的資源，以及同樣重要的，我們的集體注意力和精力，投入到真正重要的地方。少做一些事情，就能更好地完成最重要的事情。

Specific areas where we need to improve execution include meeting customer demand and delivering on our 10-nanometer lineup of products, and we are making progress. Our supply constraints have had a disruptive impact on our customers and ecosystem. We've committed never again to be a constraint on our customers' growth. We've increased capacity to improve our position in the second half, although product mix will continue to be a challenge in the third quarter as our teams align available supply with customer demand.

我們需要改進的具體領域包括滿足客戶需求和交付我們的 10 奈米產品系列，我們正在取得進展。我們的供應限制對我們的客戶和生態系統造成了破壞性影響。我們承諾絕不成為客戶發展的阻礙。為了改善下半年的市場地位，我們提高了產能，但第三季產品組合仍將是一個挑戰，因為我們的團隊需要將現有供應與客戶需求相匹配。

As I shared earlier, our confidence in 10-nanometer is also improving. In addition to the manufacturing velocity improvement I described earlier, we expect to qualify our first volume 10-nanometer product, Icelake, this quarter and are increasing our 10-nanometer volume goals for the year.

正如我之前所說，我們對 10 奈米技術的信心也不斷增強。除了我之前描述的製造速度提升之外，我們預計本季將完成首款量產 10 奈米產品 Icelake 的認證，我們將提高今年的 10 奈米產品量產目標。

I'll shift now to our full year outlook. Going forward, George will deliver our forecast. But given this is his third week with us, I'll share my thoughts on our full year reset and he'll review our first quarter results and second quarter guide.

接下來我將展望一下全年情況。接下來，喬治將為我們帶來預測。但鑑於這是他加入我們的第三週，我將分享我對我們全年調整的看法，而他將回顧我們第一季的業績和第二季的展望。

Our conversations with customers and partners across our PC and data-centric businesses over the past couple of months have made several trends clear. The decline in memory pricing has intensified. The data center inventory and capacity digestion that we described in January is more pronounced than we expected, and China headwinds have increased, leading to a more cautious IT spending environment. And yet those same customer conversations reinforce our confidence that demand will improve in the second half. So we've reassessed our '19 expectations based on the challenges we're seeing.

在過去的幾個月裡，我們與個人電腦和資料中心業務的客戶和合作夥伴進行了交流，從中可以明顯看出幾個趨勢。記憶體價格的下降趨勢加劇。我們在 1 月描述的資料中心庫存和容量消化情況比我們預期的更為明顯，而且來自中國的不利因素也在增加，導致 IT 支出環境更加謹慎。然而，這些與客戶的對話也增強了我們對下半年需求將有所改善的信心。因此，根據我們目前面臨的挑戰，我們重新評估了我們對 2019 年的期望。

Our full year outlook is now $69 billion in revenue, down 3% year-over-year and down approximately $2.5 billion from our previous estimate. Given the magnitude of change, we'll be somewhat more granular in explaining the drivers. We now see data-centric revenue down low single digits year-over-year, with DCG down mid-single digits year-over-year off a tough compare, continued China weakness and inventory and capacity absorption. We are also anticipating an incrementally more challenging NAND pricing environment.

我們對全年營收的預期為 690 億美元，年減 3%，比我們先前的預期下降約 25 億美元。鑑於變化的幅度，我們將更細緻地解釋其驅動因素。我們現在看到，以數據為中心的收入同比下降了幾個位數，其中數據中心業務同比下降了幾個位數，原因是去年同期基數較高、中國市場持續疲軟以及庫存和產能吸收不足。我們也預期 NAND 快閃記憶體定價環境將逐漸變得更具挑戰性。

Our PC-centric forecast remains unchanged at low single digits. We are forecasting operating margin to be 32%, down approximately 3 points year-over-year and down approximately 2 points from our previous guide. This outlook reflects lower full year revenue and a year-over-year decline in gross margins as a result of the 10-nanometer ramp and NAND pricing.

我們以個人電腦為中心的預測仍維持在個位數低點。我們預測營業利益率為 32%，年減約 3 個百分點，比我們先前的預期下降約 2 個百分點。這一預期反映了全年收入下降以及由於 10 奈米製程和 NAND 定價而導致的毛利率同比下降。

We continue to see good discipline on spending and expect our exit from the 5G smartphone modem segment, annualized in 2018 spending actions, and incremental spending efficiencies to reduce OpEx by approximately $1 billion year-over-year, partially offsetting the impact of lower gross margin. We now forecast full year EPS at $4.35 per share, down approximately 5% year-over-year and $0.25 from our previous guide. We now expect our full year tax rate to be 12%, up 1 point year-over-year and down 1.5 points versus our prior guide, largely as a result of lower pretax income.

我們繼續保持良好的支出紀律，預計退出 5G 智慧型手機數據機領域、2018 年的年度支出行動以及支出效率的逐步提高，將使營運支出同比減少約 10 億美元，部分抵消毛利率下降的影響。我們現在預測全年每股收益為 4.35 美元，年減約 5%，比我們先前預期的下降 0.25 美元。我們現在預計全年稅率為 12%，比上年同期上升 1 個百分點，比之前的預期下降 1.5 個百分點，這主要是由於稅前收入下降所致。

Before I hand the call over to George, I'd like to welcome him as Intel's new CFO. I've known George for a long time from his CFO days at Applied Materials while I was a board member. He brings deep industry knowledge from prior roles. He's a true team player and he cares deeply about people development and diversity. George will review our first quarter financials and second quarter guide, then we'll get to your questions. George?

在將電話交給喬治之前，我想歡迎他成為英特爾的新財務長。我認識喬治很久了，從他擔任應用材料公司財務長的時候，我還是該公司董事會成員的時候就認識他了。憑藉著以往的工作經驗，他帶來了深厚的行業知識。他是一位真正的團隊合作者，並且非常關心員工發展和多元化。喬治將回顧我們第一季的財務狀況和第二季的業績指引，然後我們將回答你們的問題。喬治？

Thanks, Bob, and good afternoon, everyone. I'm delighted to be at Intel and look forward to regularly engaging with our key stakeholders.

謝謝你，鮑勃，大家下午好。我很高興加入英特爾，並期待與我們的主要利益相關者定期交流。

Revenue for our first quarter came in at $16.1 billion, flat year-on-year and slightly higher than our guide. Data-centric revenue was $7.5 billion, down 5%; and PC-centric revenue was $8.6 billion, up 4% year-on-year. Q1 operating margin was 28%, down 2 points due to cost of our 10-nanometer ramp and NAND reserves, partially offset by platform ASP strength as supply constraints at the low end in CCG led to an especially rich mix as well as lower spending overall.

我們第一季的營收為 161 億美元，與去年同期持平，略高於我們的預期。資料中心業務收入為 75 億美元，年減 5%；個人電腦業務收入為 86 億美元，較去年同期成長 4%。第一季營業利潤率為 28%，下降 2 個百分點，原因是 10 奈米產能爬坡成本和 NAND 儲備，但平台平均售價的強勁表現部分抵消了這一影響，因為 CCG 低端產品的供應限制導致產品組合特別豐富，以及整體支出減少。

Q1 EPS came in at $0.89, up 2% versus the prior year and $0.02 over what we guided for the quarter. Year-to-date, we have generated $1.6 billion of free cash flow; returned $3.9 billion to shareholders, including dividends of $1.4 billion; and repurchased approximately 49 million shares.

第一季每股收益為 0.89 美元，比上年同期增長 2%，比我們此前對該季度的預期高出 0.02 美元。今年迄今為止，我們已產生 16 億美元的自由現金流；向股東返還了 39 億美元，其中包括 14 億美元的股息；並回購了約 4,900 萬股股票。

We are pleased with the team's focused execution for the quarter. We anticipated a challenging start to 2019, and that's what we have encountered. We also knew that the timing of our 10-nanometer ramp would pressure margins in the first quarter. And while we continue to make progress on the road map, that pressure remains a factor.

我們對團隊本季專注且有效率的執行力感到滿意。我們預料到 2019 年會有一個充滿挑戰的開端，而事實也的確如此。我們也知道，我們 10 奈米製程產能爬坡的時間安排會在第一季給利潤空間帶來壓力。儘管我們在路線圖上不斷取得進展，但這種壓力仍然是一個因素。

We see customers becoming more cautious in their buying patterns, with the most acute deceleration happening in China. Demand pressure is particularly evident in our data center business, where we are seeing a continuing inventory correction in enterprise and comms and capacity digestion among cloud service providers who ramped consumption strongly in 2018.

我們發現消費者的購買行為變得更加謹慎，其中中國市場的這種放緩趨勢最為明顯。需求壓力在我們的資料中心業務中尤其明顯，我們看到企業和通訊領域的庫存持續調整，而雲端服務供應商在 2018 年大幅提高消費量後，容量也逐漸消化。

Non-GAAP EPS was up 2% year-over-year driven by strength in our client and IoT ASPs, lower spending, lower shares outstanding and the McAfee dividend received in the quarter. Offsetting factors were continued NAND pricing pressure, 10-nanometer ramp cost and weak enterprise and government data center demand. Our tax rate came in at 12.5%, up almost 1 point year-over-year due to nonrecurring benefits in Q1 of 2018.

非GAAP每股盈餘年增2%，主要得益於客戶和物聯網平均售價的強勁成長、支出減少、流通股減少以及本季收到的McAfee股息。抵銷因素包括 NAND 快閃記憶體價格持續承壓、10 奈米製程爬坡成本以及企業和政府資料中心需求疲軟。由於 2018 年第一季的非經常性收益，我們的稅率為 12.5%，比去年同期增加了近 1 個百分點。

We continue to improve our operating efficiency year-over-year from 32.4% to 30.3% spending as a percent of revenue. Total spending was down 7% year-over-year in the quarter as we drove efficiencies in our SG&A spending and kept R&D spending flat compared to the prior year. Within that overall flat R&D spend, we are making thoughtful trade-offs so that we can amplify the investments into key priorities to grow the business. This has resulted in more investment in 10-nanometer and 7-nanometer process technology and accelerating road maps in DCG and CCG and in key growth areas like autonomous driving, AI and 5G network infrastructure.

我們的營運效率逐年提高，支出佔收入的百分比從 32.4% 降至 30.3%。本季總支出年減 7%，因為我們提高了銷售、一般及行政費用的效率，研發支出與前一年持平。在研發支出整體保持不變的情況下，我們正在進行深思熟慮的權衡，以便增加對關鍵優先事項的投資，從而促進業務成長。這促使人們增加對 10 奈米和 7 奈米製程技術的投資，並加快了 DCG 和 CCG 以及自動駕駛、人工智慧和 5G 網路基礎設施等關鍵成長領域的路線圖。

Let me now break down our performance by segment. Our Data Center Group ended the quarter with revenue of $4.9 billion, down 6% from the prior year and 19% sequentially within our expected range of sequential decline, given the headwinds we noted last quarter. Against the challenging year-over-year compare, platform units were down 8%. We saw record Xeon ASPs as customers continue to select high-performance products. We also saw a strong ramp of network SoCs, resulting in moderation of our blended platform ASP.

現在讓我按細分市場來分析一下我們的業績。我們的資料中心集團本季營收為 49 億美元，比上年同期下降 6%，季減 19%，在我們預期的環比下降範圍內，考慮到我們上個季度遇到的不利因素。與去年同期相比，平台銷量下降了 8%。隨著顧客持續選擇高性能產品，我們看到 Xeon 平均售價創下歷史新高。我們也看到網路 SoC 的強勁成長，導致我們的混合平台 ASP 趨於平穩。

Non-CPU adjacencies were up 2% driven by strength in network ASICs and silicon photonics. Cloud revenue grew 5% year-over-year in the first quarter as cloud service providers absorbed capacity put in place in 2018. Enterprise and government revenue declined by 21%, and comms service provider revenue declined 4% year-over-year in the first quarter as both enterprise and comms customers worked through inventory and China demand weakened.

受網路專用積體電路和矽光子學的強勁發展推動，非 CPU 鄰接裝置數量增加了 2%。第一季雲端收入年增 5%，因為雲端服務供應商吸收了 2018 年新增的容量。第一季度，企業和政府營收年減 21%，通訊服務供應商營收年減 4%，原因是企業和通訊客戶都在消化庫存，而中國需求疲軟。

Overall, our data-centric businesses were flat year-over-year. Our IoT businesses saw 19% revenue growth adjusted for Wind River and operating income growth of 11% year-on-year due to a mix shift to higher core products in the quarter, with the growth of compute-intensive applications like AI and computer vision.

總體而言，我們以數據為中心的業務與去年同期持平。經 Wind River 調整後，我們的物聯網業務營收年增 19%，營業收入年增 11%，這得益於本季核心產品組合的調整，以及人工智慧和電腦視覺等運算密集型應用的成長。

Mobileye had record revenue, up 38% due to an extended -- expanded product portfolio and customer base. Our memory business was down 12% due to continued NAND pricing pressures, offset by NAND data center and client bit growth. Operating income for this group is down driven by NAND ASP deterioration and demand softness, resulting in inventory revaluations.

由於產品組合和客戶群的擴展，Mobileye 的收入創下歷史新高，成長了 38%。由於 NAND 快閃記憶體價格持續承壓，我們的記憶體業務下降了 12%，但 NAND 快閃資料中心和客戶端位元的成長抵消了這一影響。該集團的營業收入下降，主要原因是 NAND 平均售價下降和需求疲軟，導致庫存重估。

The PSG group declined 2% year-on-year due to weakness in cloud and enterprise, partially offset by strength in wireless and advanced node products.

由於雲端運算和企業業務疲軟，PSG集團年減2%，但無線和先進節點產品業務的強勁表現部分抵銷了這一影響。

The Client Computing Group showed continued growth, with revenue up 4% year-over-year. Platform revenue was up 3% driven by strength in large commercial and gaming. Modem drove the majority of strength in the adjacencies, resulting in a 26% increase over the prior year. We have added supply capacity and continue working closely with our customers to align our available supply to their demand. However, supply of our PC processors and chipsets remains tight, particularly for our small core products as we prioritize big core. We saw strong ASP growth in desktop and notebook in part due to the small core constraints, but also on strong performance in gaming. Constraints were also responsible for the year-over-year decline in volume.

客戶端運算集團持續成長，營收年增 4%。平台營收成長 3%，主要得益於大型商業和遊戲業務的強勁成長。數據機推動了鄰近區域的大部分成長，比前一年增長了 26%。我們增加了供應能力，並繼續與客戶密切合作，使我們的現有供應與他們的需求相匹配。然而，我們的 PC 處理器和晶片組的供應仍然緊張，尤其是我們的小核心產品，因為我們優先考慮大核心產品。我們看到桌上型電腦和筆記型電腦的平均售價實現了強勁增長，部分原因是核心數量有限，但也得益於遊戲性能的強勁表現。各種限制因素也是導致銷量較去年同期下降的原因之一。

This quarter, we generated $5 billion in operating cash flow, and we invested $3.3 billion to expand our 14-nanometer capacity and ramp 10-nanometer. We raised the dividend by 5% and repurchased 49 million shares.

本季度，我們創造了 50 億美元的營運現金流，並投資 33 億美元擴大了 14 奈米產能，並提高了 10 奈米產能。我們將股利提高了 5%，並回購了 4,900 萬股股票。

Let me wrap up with our Q2 outlook. We expect Q2 revenue to be $15.6 billion, down 8% year-over-year. Our data-centric businesses are expected to decline in the high single digits year-over-year as memory pricing declines weigh on our NAND business and DCG customers continue to consume inventory and absorb capacity. We expect DCG to be approximately flat sequentially. The PC-centric segment is expected to decline in the high single digits on declining PC ASPs on a relative mix of more small core units. Operating margin in Q2 is expected to be 29%, down 4 points year-over-year on lower platform revenue, the 4G modem ramp and NAND pricing.

最後，我來總結我們第二季的展望。我們預計第二季營收為 156 億美元，年減 8%。由於記憶體價格下跌對我們的 NAND 業務造成壓力，而 DCG 客戶繼續消耗庫存和吸收產能，預計我們以數據為中心的業務將同比出現高個位數的下降。我們預計DCG將基本保持穩定。由於 PC 平均售價下降以及小型核心設備相對增多，以 PC 為中心的細分市場預計將出現高個位數的下滑。預計第二季營業利潤率為 29%，年減 4 個百分點，主要原因是平台收入下降、4G 調變解調器產能爬坡以及 NAND 快閃記憶體定價。

We forecast earnings per share of $0.89, flat sequentially and down $0.15 year-over-year. We expect the non-GAAP tax rate in the quarter to be 11.5%.

我們預測每股收益為 0.89 美元，環比持平，年減 0.15 美元。我們預計本季非GAAP稅率為11.5%。

I will conclude here and turn the call back to Mark.

我將就此結束發言，並將電話轉回給馬克。

Great. Thank you, George. After that eventful start to the call, we'll now move on to the Q&A. (Operator Instructions) Operator, please go ahead and introduce our first caller.

偉大的。謝謝你，喬治。在經歷瞭如此精彩的開場之後，我們現在將進入問答環節。（操作員指示）操作員，請介紹我們的第一位來電者。

Certainly. Our first question comes from the line of Joe Moore from Morgan Stanley.

當然。我們的第一個問題來自摩根士丹利的喬·摩爾。

Our next question comes from the line of Aaron Rakers.

我們的下一個問題來自 Aaron Rakers 的演講。

Yes, as we think about the gross margin trajectory through the course of the year, I'm wondering if you could help us understand the delta between the impact of 10-nanometer ramping relative to kind of the impact that you're seeing. It seems like it's going to persist, related to NAND flash.

是的，當我們考慮全年的毛利率走勢時，我想知道您是否可以幫助我們理解 10 奈米製程量產的影響與您目前看到的影響之間的差異。看來這個問題會一直存在，與NAND快閃記憶體有關。

Yes, it's lots of movement going on in the gross margin line. I'd start by saying implied in our guide for the first half is roughly 60%, so it implies a little increase off of Q1. And our implied guide then for full year is almost 60%. So through all the ups and downs, there's going to be quite a bit of consistency. That being said, the Q1 will likely be the lowest, because as I indicated in my prepared remarks, that we're going to -- we intend to qualify the 10-nanometer part in the second quarter. So what that means is in the first quarter, all of our 10-nanometer cost is flowing through cost of sales. When we qualify, it goes on the balance sheet. And then when we sell those previously reserved units in the third quarter, those units go out with no cost. So the dynamics imply low Q1 and a much stronger Q3, but through it all, fairly stable at roughly 60% level.

是的，毛利率這一項波動很大。首先我想說的是，我們指南中暗示的上半年成長幅度約為 60%，這意味著比第一季略有成長。因此，我們全年的隱含指導值接近 60%。所以，儘管會經歷起起伏伏，但整體上還是會保持相當程度的穩定性。也就是說，第一季的產量可能會最低，因為正如我在準備好的演講稿中指出的那樣，我們打算在第二季完成 10 奈米裝置的認證。這意味著在第一季度，我們所有的 10 奈米製程成本都計入了銷售成本。如果符合條件，就會列入資產負債表。然後，當我們在第三季出售之前預留的那些單元時，這些單元將免費出售。因此，動態顯示第一季較低，第三季較高，但總體而言，基本穩定在 60% 左右。

On the year-on-year decline, obviously, the NSD -- sorry, NSG pricing is having a real impact on us. We expect NSG for the year to be down roughly 10% almost, and that is primarily driven by significant change in pricing dynamics during the course of the year. So that'll be a headwind for us throughout the year.

顯然，同比下降的 NSD——抱歉，是 NSG 定價對我們產生了真正的影響。我們預計今年的 NSG 將下降約 10%，這主要是由於年內價格動態發生了重大變化。所以這將是我們全年面臨的一大不利因素。

Aaron, sorry, I should probably add something, Mark. The one last thing is, as we indicated, we expect to have systems on shelf in the fourth quarter or for holiday season, so -- and that given the progress we've made on 10, we're going to be shifting more units in the fourth quarter than we previously anticipated. So all else equal, that implies Q4 would a little bit lower than the full year guide.

亞倫，抱歉，馬克，我可能應該補充點什麼。最後一點是，正如我們所指出的，我們預計在第四季度或假日季將系統上架銷售，因此——而且鑑於我們在 10 號產品上取得的進展，我們將在第四季度售出比之前預期更多的產品。因此，在其他條件相同的情況下，這意味著第四季業績將略低於全年預期。

Once again, Joe Moore, your line is open.

喬·摩爾，你的線路已接通。

With regards to DCG being down mid-single digits for the year, I understand the issues in the first half. But it seems like the cloud guys were -- the CapEx has been okay, and I thought we had a little bit more snap back in the back half. Can you just talk a little bit more about the dynamics, specifically on the cloud side, and related to your -- the inventory that they may have of your parts there?

關於DCG今年出現個位數中段下滑的情況，我理解上半年存在的問題。但看起來雲端運算團隊的情況還不錯——資本支出還可以，而且我認為我們在下半年會有更大的反彈。您能否再詳細談談其中的動態，特別是雲端方面的動態，以及與您相關的——他們可能在雲端擁有的您的零件庫存？

Yes. Joe, as you know, the -- we came off a very strong 2018, up 21%. As we came into the year, implied in our guide, particularly in Q1, was our expectations that we'd be in quite a digestion period, both for enterprise and government but cloud as well and that, that would really impact our Q1. Look, what we're highlighting today as it relates to cloud is 2 things: that we expect the digestion to continue into Q2; that demand is going to be soft in Q2. And it's even exacerbated in China where, if you'll remember, through the third quarter last year, our demand for cloud players in China was close to triple digits. That was negative in the first quarter. So overall, they're still in a digestion period, the cloud guys. And in China is even -- it's been even more dramatic in the first quarter and the first couple weeks here in the second quarter.

是的。喬，如你所知，我們2018年業績非常強勁，成長了21%。年初時，正如我們的指南中所暗示的那樣，尤其是在第一季度，我們預計企業、政府以及雲端運算都將進入一段相當長的消化期，這將對我們的第一季業績產生重大影響。今天，我們將重點放在與雲端運算相關的兩件事：一是我們預期消化過程將持續到第二季​​；二是第二季需求將會疲軟。這種情況在中國甚至更加嚴重，如果你還記得的話，去年第三季度，我們對中國雲端服務供應商的需求接近三位數。第一季是負成長。所以總的來說，雲端運算團隊目前仍處於消化期。在中國，情況甚至更糟——第一季和第二季的前幾週情況更加嚴重。

That being said, when we asked that, when we look at end demand in this data-centric environment, when we're looking at end demand, it still seems relatively strong. And the -- in our dialogues with our customers, they are implying an uptick as we move from first half into second half.

也就是說，當我們提出這個問題時，當我們在這個以數據為中心的環境中審視最終需求時，最終需求似乎仍然相對強勁。而且—在我們與客戶的對話中，他們暗示隨著我們從上半年進入下半年，需求將會上升。

Our next question comes from the line of Toshiya Hari from Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

I had a question on your enterprise business within DCG. I was a little bit surprised by the magnitude of the decline in Q1. Bob, in your view and based on what you know, what you hear from customers, how much of that decline is tied to true end demand versus inventory dynamics at your customers? And I ask that question because some of your customers may have pre-bought in fear of supply constraints.

我有一個關於您在DCG內部企業業務的問題。第一季的下滑幅度之大讓我有些意外。鮑勃，根據你了解的情況以及你從客戶那裡聽到的信息，你認為這種下降有多少是由於客戶的實際最終需求與庫存動態有關，又有多少是由於客戶的庫存動態變化有關？我之所以問這個問題，是因為你們的一些客戶可能因為擔心供應緊張而提前購買了商品。

Yes, it's a great question. Truly, we believe that there's the end demand, and forget about which segment, but end demand remains relatively strong. But by segment, enterprise and government year-on-year decline was not way off what we expected, because we didn't have a real robust guide for Q1, but we have seen it continue into the second quarter. And I just think that the ordering ahead or the digestion of last year's strong growth, we expect now just to continue in enterprise and government through the first half and even a little more into the second half as it relates to E&G.

是的，這是一個很好的問題。我們相信，最終需求是存在的，至於具體是哪個細分市場，我們暫且不論，但最終需求仍然相對強勁。但以細分市場來看，企業和政府的年減幅與我們的預期相差不大，因為我們對第一季並沒有真正可靠的預測，但我們看到這種情況延續到了第二季。我認為，提前下單或消化去年強勁成長的勢頭，我們預計在企業和政府領域，這種趨勢將持續到上半年，甚至在下半年還會持續一段時間，尤其是在經濟和政府領域。

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

我們的下一個問題來自伯恩斯坦研究公司的史黛西·拉斯貢。

I wanted to know, of the mid-single-digit decline for data center, how much of that do you think is units versus pricing? I would have expected, with the new platform launch, we might have seen better. And obviously, you have the inventory in digestion, but there's also competition that's coming in the second half. So how do you see units versus pricing declining within the envelope of your down mid-single digits for the business overall?

我想知道，在資料中心業務出現個位數中段下滑的情況下，您認為其中有多少是業務量下降導致的，又有多少是價格下降導致的？我原本以為，隨著新平台的推出，我們會看到更好的結果。顯然，你們有庫存需要消化，但下半年也會面臨競爭。那麼，在公司整體業務下滑個位數中段的情況下，您如何看待銷售量與價格的下滑？

Yes, we kind of -- as we came in -- the updated guide, the guide now is more a unit story. When we came into the year, back in January, our expectation on ASPs is they would be pressured in DCG by 2 things in particular: one, just we indicated at the time that we expected an increased competitive environment as we go into the second half; and then two, as we look at 5G SoCs beginning to ramp as we go into the fourth quarter, they tend to be at lower ASPs. So we expect product enhancements but offset by tougher competitive environment and mix of SoCs for the comms service providers. So the big change from January is really more a unit story. And we think we bounded the ASPs best we could back in January time frame. That hasn't changed.

是的，我們有點——就像我們進來時一樣——更新的指南，現在的指南更像是單元故事。今年年初，也就是一月份，我們對資料中心集團 (DCG) 的平均售價 (ASP) 的預期是，主要有兩方面因素會對其構成壓力：第一，正如我們當時所指出的，我們預計下半年競爭環境將加劇；第二，隨著 5G SoC 在第四季度開始量產，它們的平均售價往往會更低。因此，我們預計產品效能將有所提升，但通訊服務供應商將面臨更激烈的競爭環境和 SoC 組合，這將抵消上述優勢。所以，從一月到現在最大的變化其實更多的是一個單元方面的變化。我們認為，在一月的時候，我們已經盡可能地控制了平均售價的範圍。這一點沒有改變。

Our next question comes from the line of C.J. Muse from Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I guess a question on the modem side of things. As you think about the cost savings as you deemphasize that business, will that be repurposed? Or should that accrue to the bottom line? And can you give some thoughts as to what the cost savings will have -- look like and what time frame we should see it?

我想問一個關於調製解調器方面的問題。當你考慮透過減少對該業務的投入來節省成本時，這些資金是否會被重新用於其他用途？還是這應該計入最終利潤？您能否談談成本節約的具體形式以及我們應該在多長時間內看到成效？

Yes, let me -- C.J., let me take a run and ask George to chime in as well. We announced that we were going to exit the 5G smartphone business and that we are going to evaluate the 5G Modem in other applications, like PC and IoT, while assessing our alternatives as it relates to the 5G Modem overall. So what's reflected in kind of the updated guide we gave is we do expect lower spending for 5G smartphone as we go through the course of the year. That is part of the lower spending going into the second half that we reflected. But we also -- we haven't really completed our assessment about what to do with the wonderful IP that we've developed, the real strong team that we have and the other opportunities we have, whether it's in network infrastructure, where we're really excited about the role we'll play in 5G, or whether it's the role that 5G Modem plays in these non-smartphone applications. So that's something that we're working very hard on to try to get to the right answer about how we'll deal with the technologies we built, the capabilities we have and what the implications will be on cost structure as we go into the second half of the year and into next year. So that's still a work in progress.

是的，讓我－C.J.，讓我去問問喬治，讓他也參與進來。我們宣布將退出 5G 智慧型手機業務，並將評估 5G 數據機在其他應用（如 PC 和物聯網）中的應用，同時評估與 5G 數據機相關的其他替代方案。因此，我們在更新後的指南中反映出的是，我們預計今年 5G 智慧型手機的支出將會下降。這是我們之前提到的下半年支出減少的一部分原因。但是，我們還沒有真正完成對如何利用我們開發的優秀知識產權、我們擁有的強大團隊以及我們擁有的其他機會的評估，無論是在網路基礎設施領域（我們對將在 5G 中扮演的角色感到非常興奮），還是 5G 調製解調器在這些非智慧型手機應用中扮演的角色。所以，我們正在努力尋找正確的答案，以應對我們開發的技術和我們擁有的能力，以及這些技術、能力以及它們對今年下半年和明年成本結構的影響。所以這項工作仍在進行中。

And C.J., I just might add, we talk about spending being down $1 billion year-over-year, I would say the expectations for slowing 5G spend or reducing 5G smartphone spend prior to getting through the decision process of -- that we're going through right now, is maybe 20% to 30% of that. So there is not a lot yet evident in the spend rate that we're talking about that results from the 5G Modem business.

C.J.，我還要補充一點，我們談到支出同比下降了 10 億美元，我認為在完成我們目前正在經歷的決策過程之前，預計 5G 支出​​放緩或 5G 智慧型手機支出減少的幅度可能只有這個數字的 20% 到 30%。因此，在我們所討論的支出率中，5G調變解調器業務帶來的實際影響還不明顯。

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

我們的下一個問題來自瑞士信貸的約翰‧皮策。

I know you would like us to focus a little bit more on op margin than gross margin, but I just want to go back to the gross margin line. As far as I can remember, with an in line revenue quarter for March, this is the most significant gross margin miss to Street estimates that I can remember for the company. And I know you've talked about 10-nanometer volumes being higher than you expected this year. Can you talk a little bit about the yield curve and kind of the cost of 10-nanometer? And I guess really importantly, if the long-term sort of upper range of your gross margin had been 60% to 65%, do you still think that that's the right sort of higher-end range as we go to the 10-nanometer node for CPUs, notwithstanding that some of the adjacencies are lower gross margin?

我知道您希望我們更專注於營業利潤率而不是毛利率，但我只想回到毛利率這一項。就我記憶所及，儘管三月的營收季度與預期相符，但這是我所見過的該公司毛利率與華爾街預期差距最大的一次。我知道您曾說過，今年 10 奈米級晶片的產量比您預期的要高。能簡單談談10奈米製程的良率曲線和成本嗎？我想真正重要的是，如果你們的長期毛利率上限是 60% 到 65%，那麼隨著 CPU 製程邁向 10 奈米節點，即使某些相鄰產品的毛利率較低，你們是否仍然認為這是一個合適的較高範圍？

Yes. Thanks, John. First, in the first quarter, kind of 2 things that really impacted gross margin: one, frankly, we planned for and played out as we expected; and two, we did not plan for. But the one we planned for is just as we ramp 10, and as you're aware and I mentioned earlier, until we qualify the product, which we expect to do in the second quarter, all that cost flows through cost of sales. So when we're in early stages of ramp prior to qualification, that does compress gross margin. And that played out as we expected, because I mentioned in my prepared remarks that our progress and our improvement on 10-nanometer yields was in line with what we've expected coming into the year, a little bit better, that gave us the comfort that we're going to increase volume at the end of the year. But Q1 is just the dynamics of all of that ramp cost going through cost of sales. That was planned and that was anticipated. The not planned in the quarter was just the ASP declined much greater than we had anticipated for NSG. We were in the -- we were expecting kind of mid-20s to 30% ASP declines. The reality is it was closer to the mid-40s. And as a result, and George flagged this, but as a result, we had to take a lower cost or market reserve against our inventory balance in the quarter. That cost us over 1 point of gross margins in the quarter. That we did not quite anticipate.

是的。謝謝你，約翰。首先，在第一季度，有兩件事對毛利率產生了真正的影響：坦白說，第一件事是我們計劃好的，並且按照預期進行；第二件事是我們沒有計劃好的。但我們計劃的方案是在我們開始生產第 10 台產品的時候，正如您所知，我也提到過，在我們完成產品認證之前（我們預計在第二季度完成），所有這些成本都計入銷售成本。因此，在獲得認證之前的早期產能爬坡階段，確實會壓縮毛利率。事情的發展正如我們預期的那樣，因為我在事先準備好的發言稿中提到，我們在 10 奈米製程良率方面的進展和改進與我們年初的預期相符，甚至更好一些，這讓我們有信心在年底提高產量。但第一季只是所有這些啟動成本都計入銷售成本的動態結果。那是計劃好的，也是預料之中的。本季未規劃的情況是，NSG 的平均售價下降幅度遠超我們的預期。我們當時預計平均售價會下降 20% 到 30%。實際情況更接近 40 年代中期。因此，正如喬治指出的那樣，我們不得不降低本季庫存餘額的成本或市場準備。這導致我們本季毛利率下降了超過 1 個百分點。這是我們始料未及的。

So gross margin Q1, in line with kind of what we thought, with the exception of inventory reserves that we took in the quarter. And as I said, Q2, we expect it to be better than Q1 because we'll begin to capitalize those costs because of the progress we're making on 10-nanometer. And then just to kind of go from your Q1 to your 5 years out point of view, I guess maybe on the gross margin, operating margin dynamics, maybe we'll defer that, kick the can couple of weeks, until we see you on May 8 when we kind of walk through our longer-range planning process.

所以第一季的毛利率基本上符合我們的預期，只是本季提列了庫存準備金。正如我所說，我們預計第二季度會比第一季更好，因為我們將在 10 奈米技術取得進展後開始將這些成本轉化為收益。然後，從您第一季到未來五年的展望來看，關於毛利率、營業利潤率的動態變化，我們或許會推遲討論，再拖延幾週，直到 5 月 8 日與您見面，屆時我們將詳細討論我們的長期規劃流程。

Our next question comes from the line of Timothy Arcuri from UBS.

我們的下一個問題來自瑞銀集團的 Timothy Arcuri。

Bob, I wanted to ask you just a question strategically about memory. And I wanted to understand, obviously, you need to make cost [point], but relative to NAND, why the need to make NAND on your own? It seems like you could sell the factory and maybe strike some sort of a supply agreement and save a lot of free cash flow, particularly after a quarter rotation can cost you 100 basis points.

鮑勃，我想就記憶力方面的問題問你一個策略性的問題。我很想知道，顯然你們需要考慮成本，但是相對於 NAND 快閃記憶體來說，為什麼需要自己生產 NAND 快閃記憶體呢？看起來你可以賣掉工廠，或許還能達成某種供應協議，從而節省大量自由現金流，尤其是在季度輪換可能讓你損失 100 個基點的情況下。

Yes. First, maybe just some context on when we talk about expanded TAM, the -- maybe the criteria we think about and then I'll try to apply them to where we are in memory. First, we look for technology inflections where we think we have a real advantage, whether it's process manufacturing or performance-oriented design that is worth pursuing, number one; number two, such that we can play a more important role in the success of our customers; and third, in an area where we think we can get attractive returns for our investors. So those are our -- the 3 criteria that we're applying, and we're going to be increasingly disciplined on the third aspect of those criteria.

是的。首先，或許應該先說明我們何時談論擴展的 TAM，也就是我們考慮的標準，然後我會嘗試將它們應用到我們目前所處的記憶體狀況中。首先，我們會尋找我們認為具有真正優勢的技術轉折點，無論是值得追求的製程製造還是性能導向型設計；其次，這樣我們就能在客戶的成功中發揮更重要的作用；第三，在這個領域，我們認為可以為投資者帶來可觀的回報。所以，以上就是我們採用的 3 項標準，我們將越來越嚴格地執行這 3 項標準中的第三項。

As it relates to memory, we have a high-performance Optane product that we think is really differentiated, coupled with our CPU that can do things best in industry that's really needed to keep pace with the increased performance of CPU processing. So strategically, we think it's really important. Technically, we think we have a real advantage. And third, we think we can get good returns.

就記憶體而言，我們擁有高效能的傲騰產品，我們認為它具有真正的差異化優勢，再加上我們業界最優秀的 CPU，這對於跟上 CPU 處理效能不斷提高的步伐至關重要。因此，從戰略角度來看，我們認為這非常重要。從技術角度來看，我們認為我們擁有真正的優勢。第三，我們認為我們可以獲得好的回報。

As it relates to NAND, we think we have process technology advantage. We're in the stage where we've gone from 32-layer to 64-layer now. The profitability of the NAND business pre this massive decline in ASPs was okay last year as we were ramping the business. And our challenge going forward is we're just going to have to execute better on the NAND business, so we can check that third box of attractive returns for our investors. And I don't want to -- when the market's plummeting I don't want to conclude what the right decision is. I want to maybe look through the horizon a little bit to get to the right decision. But clearly, we got to generate more attractive returns on the NAND side of the business, and the team is very focused on making that a reality. And to the extent there is a partnership out there that's going to increase the likelihood and/or accelerate the pace, we're going to evaluate those partnerships along the way so it can be enhancing to the returns of what we do in the memory space.

就NAND而言，我們認為我們在製程技術方面具有優勢。我們現在已經從 32 樓發展到 64 樓了。在 ASP 大幅下滑之前，NAND 業務去年的獲利能力還不錯，因為我們正在擴大業務規模。我們未來的挑戰在於，我們必須在 NAND 業務上做得更好，這樣才能為我們的投資者帶來可觀的回報，從而實現第三個目標。而且我不想——當市場暴跌時，我不想判斷什麼是正確的決定。我想稍微放眼長遠，以便做出正確的決定。但很顯然，我們必須在 NAND 業務方面獲得更有吸引力的回報，團隊正全力以赴實現這一目標。如果存在能夠提高可能性和/或加快速度的合作關係，我們將在此過程中評估這些合作關係，以便提高我們在記憶體領域所做工作的回報。

Our next question comes from the line of David Wong from Nomura.

我們的下一個問題來自野村證券的David Wong。

Bob, given your stance on concentration of resources, what are you thinking with regard to Intel developing a [term] GPU product? And if you are pressing ahead with this, can give us an update on where you are and when we might see the first Intel GPUs?

鮑勃，鑑於你對資源集中化的立場，你對英特爾開發GPU產品有何看法？如果您正在推進這項工作，能否告知我們目前的進展情況，以及我們何時能看到首批英特爾GPU？

Yes. I mean first, as we think about the key technologies that we believe are going to be increasingly important going forward, I flagged them earlier, but we characterize them as our -- kind of our 6 pillars of technology differentiation. Obviously, process technology is an important component; Second, architectures, I'll come back to that; third, memory; fourth, interconnect; fifth, security; and sixth, software. And how we bring the collection of those 6 things together that nobody else in the industry can do, we think is really what's going to allow us to capitalize on an increasingly data-centric world.

是的。首先，當我們思考我們認為未來將變得越來越重要的關鍵技術時，我之前已經提到過，我們將它們概括為我們——某種意義上的六大技術差異化支柱。顯然，工藝技術是一個重要組成部分；其次是架構，我稍後會再談到；第三是記憶體；第四是互連；第五是安全；第六是軟體。而我們如何將這 6 件事結合起來，這是業內其他人都做不到的，我們認為這才是真正能夠讓我們在日益以數據為中心的世界中獲利的關鍵。

When we think about architecture, we just -- as we learn more and more about how workloads are evolving and the increasingly importance of artificial intelligence and parallel processing, we believe that architectures beyond the CPU, like GPU, like FPGA, like AI, like other accelerators, become increasingly important. So we have decided that we are going to invest in discrete GPUs. We're going to launch a new integrated GPU in the near term, which we're pretty excited about. But discrete GPUs, I think we said that we are going to launch it in 2020 time frame, both for clients and for data center. Increased workloads, we're going to leverage the integrated technology that we've enhanced and invested in discrete GPUs because we think it's an architecture that's increasingly important. And we think we can develop some real attractive products based on our existing core architecture.

當我們思考架構時，我們只是——隨著我們對工作負載的演變以及人工智慧和平行處理的重要性了解得越來越多，我們認為 CPU 以外的架構，如 GPU、FPGA、AI 和其他加速器，變得越來越重要。所以我們決定投資獨立顯示卡。我們近期將推出一款新的整合式顯示卡，對此我們感到非常興奮。但對於獨立顯示卡，我想我們說過我們將在 2020 年左右推出，面向客戶端和資料中心。隨著工作負載的增加，我們將利用我們已經增強的整合技術，並投資於獨立 GPU，因為我們認為這種架構越來越重要。我們認為，基於我們現有的核心架構，我們可以開發出一些真正有吸引力的產品。

Our next question comes from the line of Vivek Arya from Bank of America.

我們的下一個問題來自美國銀行的維韋克·阿亞。

Bob, I had a question on 10-nanometer progress and the competition on the server side. I know your -- the team is sounding more confident about 10-nanometer on the client side. I'm curious what the progress is on 10-nanometer and the server side, and as part of that, how do you think your customers are reacting to a competitor bringing out their products in the back half? Your products are coming out next year. What are you hearing from customers as to how they are thinking about the next generation of server CPUs and the desire for perhaps diversifying suppliers?

鮑勃，我有一個關於 10 奈米製程進展以及伺服器端競爭的問題。我知道你們團隊對客戶端的 10 奈米製程越來越有信心。我很好奇 10 奈米製程和伺服器端的進展情況，以及，您認為您的客戶對競爭對手在下半年推出產品有何反應？你們的產品將於明年上市。您從客戶那裡了解到，他們對下一代伺服器 CPU 有什麼看法？他們是否希望供應商多元化？

First, on 10-nanometer for server, what we've indicated is that we would have client systems on shelf for the holiday season, and our expectation is that server CPUs would be a fast follow. Historically, I think it's been more of a 12- to 18-month gap between client and then server. On 10-nanometer, that gap would be much shorter. And again, what we said is fast follow after client systems on shelf, so sometime in 2020, earlier versus later. In terms of just competitive positioning, with the -- we've been -- our Xeon Scalable product that we launched last year and then enhanced with our Cascade Lake launch just a few weeks ago I think, that has increased performance. It's got AI acceleration built into it. It's coupled with Optane memory. It's got a 56 core count. And the performance of that product, coupled with our knowledge of the environment in which -- our customers' environments, we think we really have demonstrated differentiated performance, a product leadership performance, even though it is still on 14-nanometer.

首先，關於伺服器的 10 奈米工藝，我們已經表示，我們將在假期期間提供客戶端系統，我們預計伺服器 CPU 很快就會跟進。從歷史數據來看，我認為客戶端和伺服器之間通常會有 12 到 18 個月的時間間隔。在 10 奈米尺度上，這個差距會小得多。我們再次強調，客戶系統上市後會迅速跟進，所以會在 2020 年的某個時候推出，比之前更早。就競爭定位而言，我們去年推出的 Xeon 可擴展產品，以及幾週前推出的 Cascade Lake 產品，都提高了效能。它內建了人工智慧加速功能。它與傲騰記憶體結合。它有56個核心。這款產品的性能，加上我們對客戶環境的了解，我們認為我們已經真正展現了差異化的性能，產品領先性能，即使它仍然採用 14 奈米技術。

So we have a good product that really pulls together those 6 pillars that I talked about earlier. We launched it a few weeks ago. We said we expect it to ramp as fast as any launch that we've done in the past. And we think it positions us competitively in the second half of the year, despite increased competition prior to launching 10-nanometer in 2020.

所以我們有一個很棒的產品，它真正將我之前提到的 6 個支柱融合在一起。我們幾週前發布了它。我們預計它的產能提升速度將與我們過去任何一次產品發布一樣快。我們認為，儘管在 2020 年推出 10 奈米技術之前競爭加劇，但這仍使我們在下半年處於競爭優勢。

So we feel good about 10-nanometer in general. We're going to be a fast follow with server in 2020. In the meantime, the Cascade Lake product has some real performance enhancements based on our deep domain knowledge of our customers. And it'll be an increased competitive environment, but we feel pretty good and we tried the best we could to capture that in our outlook for 2019.

所以我們總體上對 10 奈米製程感到滿意。我們將於 2020 年迅速跟進伺服器。同時，基於我們對客戶的深入了解，Cascade Lake 產品在性能方面也得到了顯著提升。競爭環境將會更加激烈，但我們感覺相當不錯，我們已盡最大努力在 2019 年展望中體現這一點。

Our next question comes from the line of Harlan Sur from JPMorgan.

我們的下一個問題來自摩根大通的哈蘭‧蘇爾。

5G network connectivity is very strong and projected to continue to accelerate on a go-forward basis. Korea, China, U.S., all starting to fire. You guys have a great lineup of products, Xeon D, full-blown Xeon, base station ASICs, FPGAs and so on. So help us understand, given all these dynamics, why did the comms service provider segment decline year-over-year in Q1? And maybe more importantly, just given the strong 5G lineup that you have, do you see comms service provider contributing to the strong second half implied growth in your data-centric segment guidance for the full year?

5G網路連線非常強大，預計未來將繼續加速發展。韓國、中國、美國都開始開火。你們的產品線非常豐富，包括 Xeon D、全功能 Xeon、基地台 ASIC、FPGA 等等。那麼，鑑於所有這些動態因素，請幫助我們理解為什麼通訊服務提供者部門在第一季同比下降？更重要的是，鑑於貴公司強大的 5G 產品陣容，您認為通訊服務供應商能否為貴公司全年資料中心業務板塊下半年的強勁成長做出貢獻？

Yes. I think, first, yes, we feel like we got a great product lineup for the launch of 5G. We have a strong position today, and we think 5G is only going to accelerate that across a broad swath of our products and technologies. The -- a couple of things going on, we believe, in Q1. One, just in terms of the increased demand, we do expect it to be coming maybe a little bit later in the year. I think FPGA is a little bit earlier, but the Xeon, we expect to follow later in the year and even more in 2020, to be honest with you. So timing, we expect it to be out a little bit, modest improvement in the second half but not dramatic.

是的。首先，我認為，是的，我們感覺我們為 5G 的推出準備了非常棒的產品陣容。我們目前擁有強大的市場地位，我們認為 5G 只會加速這一地位在我們眾多產品和技術中的普及。我們認為，第一季有兩件事正在發生。第一，就需求增加而言，我們預計它可能會在今年稍後到來。我覺得FPGA會稍微早一點推出，但說實話，我們預計Xeon會在今年稍後推出，甚至可能要等到2020年。所以，就時間安排而言，我們預計會稍有偏差，下半年會略有改善，但不會有顯著變化。

And the other thing I would say is that we have a strong customer base in China in comms. And we -- like we saw in cloud and enterprise and government, comms growth we think was also impacted by strong comms growth last year that's probably being digested a little bit in the first couple of quarters of this year. Again, one of our large customers in China is a contributor to the question earlier about buying ahead and then digestion, is a weight on comms growth in the first quarter. So we're pretty excited about the demand signals we're seeing, the relationships we've built for 5G and think it's going to be a really important part of our story going forward.

另外，我想說的是，我們在中國通訊領域擁有強大的客戶基礎。就像我們在雲端運算、企業和政府領域看到的那樣，我們認為通訊領域的成長也受到了去年強勁通訊成長的影響，而這種成長可能在今年前幾季得到了一些消化。再次強調，我們中國的一位大客戶也對先前提出的提前購買和消化問題做出了貢獻，這給第一季的通訊業務成長帶來了壓力。因此，我們對目前看到的需求訊號以及我們為 5G 建立的關係感到非常興奮，並認為這將是我們未來發展歷程中非常重要的一部分。

Our next question comes from the line of Ambrish Srivastava from BMO.

我們的下一個問題來自 BMO 的 Ambrish Srivastava。

Bob, I just wanted to -- I was wondering if you could shed more light on the DCG op margin. We've not seen this low a number in quite a few quarters, I think 6 to 8 quarters, 38%. And you list 3 reasons, but it disproportionately seems to be lower versus the revenue decline. Could you shed a little bit more light? And more importantly, how should we expect this to trend as the year progresses?

鮑勃，我只是想問一下——我想知道你是否能更詳細地解釋一下 DCG 營運利潤率。我們已經好幾個季度沒見過這麼低的數字了，我想大概有 6 到 8 個季度了，38%。你列出了 3 個原因，但與收入下降相比，這些原因似乎不成比例地偏低。能再詳細解釋一下嗎？更重要的是，隨著時間的推移，我們應該預期這種趨勢會如何發展？

Yes, I mean I think the things we flagged, obviously, unit volume declines on a high-margin business worked against us. Secondly, it's really DCG now. I talked to you about the fast follow of DCG on 10-nanometer after client launch. So as a result, they're just now beginning to bear some of the brunt of the cost of sales that all went through the P&L in the first quarter until those products qualify. And then third, this is a -- this is a big growth area for us and we're going to continue to make investments. So those 3 things are really what drove the op margin decline in the quarter.

是的，我的意思是，我認為我們指出的問題，很明顯，高利潤業務的銷售下降對我們不利。其次，它現在真的是DCG了。我之前跟你談過客戶端發布後 DCG 在 10 奈米製程上的快速跟進。因此，他們現在才開始承擔部分銷售成本，這些成本原本都計入了第一季的損益表，直到這些產品符合資格為止。第三，這是──這是我們一個重要的成長領域，我們將繼續進行投資。所以，這三件事才是導致本季營業利益率下降的真正原因。

As you know, just from historical trends, data center margins tend to be a little bit lower in the first quarter. And obviously, implied in our guide first half to second half, second half is a little stronger. And with that strength on unit volumes despite maybe more intense ASP environment, we expect operating margins to kind of improve in line with revenue growth in the second half. Those trends are fairly consistent with how the quarterly dynamics of DCG operating margins go. They're just more exacerbated in Q1 with the 10-nanometer cost of sales starting to impact the business.

如您所知，從歷史趨勢來看，資料中心利潤率在第一季往往會略低一些。顯然，正如我們的指南中從上半場到下半場所暗示的那樣，下半場的強度要高一些。儘管平均售價環境可能更加緊張，但由於銷量依然強勁，我們預計下半年營業利潤率將隨著收入成長而有所改善。這些趨勢與 DCG 營運利潤率的季度動態變化相當一致。只是在第一季度，由於 10 奈米製程的銷售成本開始影響業務，這些問題更加嚴重了。

Our final question for tonight comes from the line of Blayne Curtis from Barclays.

今晚的最後一個問題來自巴克萊銀行的布萊恩柯蒂斯。

Just one more on gross margin, if possible, and I know you don't want to comment on '20. But I'm just trying to understand the trajectory here, because it seems like your 10-nanometer has been delayed. You're ramping it now. It does seem like it's on a portion of the product line, not like the old days, where it would flip over all of client. So I'm just trying to understand, if you look at the impact you saw this year, why is it incorrect to think about that you should see a similar impact next year?

如果可以的話，請再問一個關於毛利率的問題，我知道您不想對 2020 年的情況發表評論。但我只是想了解這裡的發展軌跡，因為看起來你們的 10 奈米製程似乎被推遲了。你現在正在加大力度。看起來它似乎只影響部分產品線，不像以前那樣會影響整個客戶。所以我想弄清楚，如果你看看今年所看到的影響，為什麼認為明年也應該看到類似的影響是不正確的呢？

Well, yes, I think you know that our expectations are as we begin to ramp high-volume manufacturing, that in conjunction with that, we expect to see improved yields and better [units-to-die] performance as we go throughout the course of the year and as we step on the pedal and ramping volumes. So the -- part of the answer is we expect to improve yields as we go forward. But that being said, any time we transition to a new node, the earlier stages tend to be -- have a little bit of a compression effect on gross margins until we get a little more maturity. And I don't want to get out ahead on 2020. We're more focused on '19 right now, but it's natural for the transition to a new node in early stages to have a bit of a downward pressure on gross margin.

是的，我想您也知道，隨著我們開始逐步提高產量，我們預計在今年內，隨著我們加大力度提高產量，良率和晶片單元數性能將會提高。所以答案的一部分是，我們預期隨著時間的推移，收益率會提高。但話雖如此，每當我們過渡到新節點時，早期階段往往會對毛利率產生一些壓縮效應，直到我們更加成熟為止。我不想在2020年之前就領先一步。我們現在更關注 2019 年，但在早期階段向新節點過渡自然會對毛利率造成一些下行壓力。

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

謝謝你，布萊恩。感謝各位今天蒞臨現場。接線員，請結束通話。

Certainly. Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

當然。女士們、先生們，感謝各位參加今天的會議。節目到此結束。您現在可以斷開連線了。再會。