萊迪思半導體 (LSCC) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions) If you would like -- and I would like to welcome everyone to the Lattice Semiconductor First Quarter Fiscal Year 2020 Earnings Release Conference Call. (Operator Instructions) A replay will be available approximately 2 hours after the call today. The replay dial-in number is (404) 537-3406. The conference ID number is 8369259. The replay will also be accessible on Lattice's website at latticesemi.com.

女士們，先生們，謝謝你們的支持。 （操作員說明）如果你願意——歡迎大家參加萊迪思半導體公司 2020 財年第一季度收益發布電話會議。 （操作員說明）今天通話後約 2 小時將提供重播。重播撥入號碼是 (404) 537-3406。會議 ID 號是 8369259。重播也可以在萊迪思的網站 latticesemi.com 上訪問。

I would now like to turn the call over to Rick Muscha. Please go ahead.

我現在想把電話轉給 Rick Muscha。請繼續。

Thank you, operator, and good afternoon, everyone. With me today are Jim Anderson, Lattice's President and CEO; and Sherri Luther, Lattice's CFO. We will provide a financial and business review of the first quarter of 2020 and the business outlook for the second quarter of 2020. If you have not obtained a copy of our earnings press release, it can be found at our company website in the Investor Relations section at latticesemi.com.

謝謝接線員，大家下午好。今天和我在一起的有萊迪思總裁兼首席執行官 Jim Anderson；和萊迪思的首席財務官 Sherri Luther。我們將提供 2020 年第一季度的財務和業務回顧以及 2020 年第二季度的業務展望。如果您還沒有獲得我們的收益新聞稿副本，可以在我們公司網站的投資者關係中找到latticesemi.com 上的部分。

I would like to remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that is currently available, and actual results may differ materially. We refer you to the documents the company files with the SEC, including our 10-Ks, 10-Qs and 8-Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. This call includes and constitutes the company's official guidance for the second quarter of 2020. If at any time after this call we communicate any material changes to this guidance, we intend that such updates will be done using a public forum such as a press release or publicly announced conference call.

我想提醒大家，在我們今天的電話會議中，我們可能會對未來事件或公司未來的財務業績做出預測或其他前瞻性陳述。我們希望提醒您，此類陳述是基於當前可用信息的預測，實際結果可能存在重大差異。我們建議您參考公司向美國證券交易委員會提交的文件，包括我們的 10-Ks、10-Qs 和 8-Ks。這些文件包含並確定了可能導致實際結果與我們的預測或前瞻性陳述中包含的結果存在重大差異的重要風險因素。本次電話會議包括並構成公司 2020 年第二季度的官方指南。如果在本次電話會議後的任何時候我們傳達了對本指南的任何重大更改，我們打算使用公共論壇（例如新聞稿或公開宣布的電話會議。

Some financial information that we present during the call will be provided on both a GAAP and a non-GAAP basis. By disclosing certain non-GAAP information, management intends to provide investors with additional information to permit further analysis of the company's performance and underlying trends. Management uses non-GAAP measures to better assess operating performance and to establish operational goals. For historical periods, we provide reconciliations of these non-GAAP financial measures to GAAP financial measures that can be found on the Investor Relations section of our website at latticesemi.com.

我們在電話會議期間提供的一些財務信息將在 GAAP 和非 GAAP 基礎上提供。通過披露某些非 GAAP 信息，管理層打算為投資者提供更多信息，以便進一步分析公司的業績和潛在趨勢。管理層使用非 GAAP 措施來更好地評估運營績效並製定運營目標。對於歷史時期，我們提供了這些非 GAAP 財務措施與 GAAP 財務措施的對賬，這些措施可以在我們網站 latticesemi.com 的投資者關係部分找到。

Let me now turn the call over to Jim Anderson, our President and CEO.

現在讓我把電話轉給我們的總裁兼首席執行官吉姆安德森。

Thank you, Rick, and thank you, everyone, for joining us on our call today. I'm pleased with the results we delivered in Q1 of 2020 given the dynamic environment around COVID-19. We took action quickly at Lattice to safeguard the health and well-being of our employees, which is a top priority. I want to take the opportunity to thank all of our employees for how well they've managed this situation. I want to thank the engineering team for staying focused on executing our road map, our operations team for staying focused on supply chain management and our business team for continuing to make progress with our customers. I could not be more proud of the Lattice team.

謝謝你，里克，也謝謝大家今天加入我們的電話會議。鑑於 COVID-19 周圍的動態環境，我對我們在 2020 年第一季度交付的結果感到滿意。我們在萊迪思迅速採取行動，以保障我們員工的健康和福祉，這是當務之急。我想藉此機會感謝我們所有的員工，感謝他們處理這種情況的能力。我要感謝工程團隊一直專注於執行我們的路線圖，我們的運營團隊一直專注於供應鏈管理，我們的業務團隊繼續與我們的客戶取得進展。我為 Lattice 團隊感到無比自豪。

Let me cover a few key points from the first quarter of 2020. Relative to our Q1 guidance, we experienced a roughly 3% impact to Q1 revenue due to COVID-19, with the impact to demand concentrated in Asia and primarily in our consumer segment. However, we saw strong year-over-year revenue growth in both our communications and computing segment as well as our industrial and automotive segment. Also, we continue to make progress on gross margin expansion with a non-GAAP gross margin increase of 120 basis points year-over-year as we continue to execute on our gross margin improvement strategy. We also continue to drive improvements to profitability with a 39% year-over-year increase in our non-GAAP net income, and we ended the quarter with a healthy balance sheet, including a strong cash position. Also, despite many of our employees working from home over the past weeks, we continue to make steady progress on our key product road map milestones and continue to build customer momentum on the products that we launched last year. Let me now provide an overview of our business by end market.

讓我談談 2020 年第一季度的幾個要點。相對於我們的第一季度指引，由於 COVID-19，我們對第一季度的收入產生了大約 3% 的影響，對需求的影響集中在亞洲，主要集中在我們的消費者領域.然而，我們在通信和計算部門以及工業和汽車部門都看到了強勁的同比收入增長。此外，隨著我們繼續執行我們的毛利率改善戰略，我們繼續在毛利率擴張方面取得進展，非美國通用會計準則毛利率同比增長 120 個基點。我們還繼續推動盈利能力的改善，我們的非 GAAP 淨收入同比增長 39%，並且我們在本季度結束時擁有健康的資產負債表，包括強勁的現金狀況。此外，儘管過去幾週我們的許多員工在家工作，但我們繼續在我們的關鍵產品路線圖里程碑上取得穩步進展，並繼續為我們去年推出的產品建立客戶動力。現在讓我按終端市場概述我們的業務。

In the communications and computing market, revenue was approximately flat sequentially and up 8% on a year-over-year basis. In computing, our revenue grew sequentially and year-over-year as we continue to see adoption of our products used in both servers as well as client-computing platforms. Growth in servers was driven by both our higher attach rate and ASP versus the prior generation of servers. We continue to work closely with our key server customers to bring greater value to next-generation platforms. In the communications market, although revenue was down sequentially due to declines in older generation systems, we continue to benefit from 5G infrastructure deployments with both sequential and year-over-year growth in 5G revenue in Q1. We continue to expect the deployment of 5G infrastructure to be a long-term multiyear growth opportunity for Lattice.

在通信和計算市場，收入環比基本持平，同比增長 8%。在計算方面，隨著我們繼續看到我們的產品在服務器和客戶端計算平台中的採用，我們的收入逐年增長。與上一代服務器相比，我們更高的附加率和 ASP 推動了服務器的增長。我們繼續與我們的主要服務器客戶密切合作，為下一代平台帶來更大的價值。在通信市場，儘管由於老一代系統的下降導致收入環比下降，但我們繼續受益於 5G 基礎設施部署，第一季度 5G 收入環比和同比增長。我們繼續預計 5G 基礎設施的部署將成為萊迪思的長期多年增長機會。

Turning now to the industrial and automotive market. Revenue increased 5% sequentially in Q1 and 14% on a year-over-year basis. Q1 growth in the industrial segment reflects increased demand for our products used in a broad range of applications, including factory automation, robotics and embedded vision. Although automotive remains a small portion of this segment at this time, we believe it will be a long-term growth vector as new customer programs ramp and demand in the automotive market returns.

現在轉向工業和汽車市場。第一季度收入環比增長 5%，同比增長 14%。工業領域第一季度的增長反映了對我們產品在廣泛應用中的需求增加，包括工廠自動化、機器人技術和嵌入式視覺。儘管目前汽車仍然是該細分市場的一小部分，但我們相信隨著新客戶計劃的增加和汽車市場需求的回歸，這將成為一個長期的增長載體。

Turning now to the consumer market. Revenue declined 24% sequentially in Q1 and 32% year-over-year. The decline reflects weakness due to COVID-19, particularly in the Asia geography as well as the expected shift in the mix of revenue towards our other market segments over time. In consumer, we remain focused on applications with consistent multiyear revenue streams and higher margins, where our solutions are enabling customers to differentiate their products. I'll now provide some highlights of our recent product road map execution.

現在轉向消費市場。第一季度收入環比下降 24%，同比下降 32%。這一下降反映了 COVID-19 造成的疲軟，尤其是在亞洲地區，以及收入組合隨著時間的推移向我們其他細分市場的預期轉變。在消費領域，我們仍然專注於具有穩定的多年收入流和更高利潤率的應用程序，我們的解決方案使客戶能夠在這些應用程序中實現產品差異化。我現在將提供我們最近產品路線圖執行的一些亮點。

As we discussed at our Nexus platform launch in December, we're investing in a portfolio of higher-level software that allows our devices to be easily used, adopted quickly and introduced to the market much faster. The first installment in our software solution portfolio was our award-winning sensAI software stack, which is focused on low-power inference processing at the edge of the network. I'm very pleased that we launched our second installment in our software solution portfolio on time in Q1, which is our embedded vision stack called mVision. mVision is a complete hardware-software solution that enables customers to accelerate and simplify the implementation of embedded vision across our key markets. The response has been very positive from both our customers and the industry, as our mVision solution stack recently received Best in Show award at the 2020 Embedded World Exhibition.

正如我們在 12 月推出的 Nexus 平台上所討論的那樣，我們正在投資開發更高級別的軟件組合，使我們的設備能夠輕鬆使用、快速採用並更快地推向市場。我們的軟件解決方案組合中的第一部分是我們屢獲殊榮的 sensAI 軟件堆棧，它專注於網絡邊緣的低功耗推理處理。我很高興我們在第一季度按時推出了我們的軟件解決方案組合中的第二部分，這是我們的嵌入式視覺堆棧，稱為 mVision。 mVision 是一個完整的硬件-軟件解決方案，使客戶能夠在我們的主要市場加速和簡化嵌入式視覺的實施。我們的客戶和行業的反響都非常積極，因為我們的 mVision 解決方案堆棧最近在 2020 年嵌入式世界展覽會上獲得了最佳展示獎。

We also remain firmly on track for the launch of the third installment in our software solutions portfolio, which is our security solution stack, which is planned for delivery to customers in the second half of 2020. With regard to our device road map, when we launched our Nexus FPGA platform this past December, we also launched our first device based on the platform, the CrossLink-NX device. At that time, we committed to releasing 2 additional Nexus-based devices in 2020. I'm pleased to report that execution remains on track for both programs. We expect to launch our second Nexus-based device in Q2, and our third device is on track to launch in the second half of 2020. The Nexus platform has been architected for power efficiency, which enables a significant power reduction for our customers across a broad range of applications. We also offer significantly better performance compared to the competition in applications that require video connectivity such as AI and embedded vision. We're very pleased with the broad adoption of our Nexus platform as the number of both customer engagements and opportunities continues to build.

我們還堅定地推出我們的軟件解決方案組合中的第三部分，這是我們的安全解決方案堆棧，計劃於 2020 年下半年交付給客戶。關於我們的設備路線圖，當我們去年 12 月推出了我們的 Nexus FPGA 平台，我們還推出了我們的第一款基於該平台的設備，即 CrossLink-NX 設備。當時，我們承諾在 2020 年再發布 2 款基於 Nexus 的設備。我很高興地向大家報告，這兩個項目的執行仍在進行中。我們預計將在第二季度推出我們的第二款基於 Nexus 的設備，我們的第三款設備有望在 2020 年下半年推出。Nexus 平台專為提高能效而設計，可以為我們的客戶顯著降低功耗廣泛的應用。與人工智能和嵌入式視覺等需要視頻連接的應用程序的競爭相比，我們還提供了明顯更好的性能。我們對 Nexus 平台的廣泛採用感到非常高興，因為客戶參與度和機會的數量都在不斷增加。

In summary, while COVID-19 creates some uncertainty in the near-term business environment, we remain focused on our long-term strategy. We continue to accelerate the cadence of new products and solutions that we're bringing to market, and we continue to build momentum with customers across our market segments with our expanding product portfolio. Our team remains focused on executing our strategy, and I want to once again thank our employees for their creativity, dedication and continued execution.

總而言之，雖然 COVID-19 在近期商業環境中造成了一些不確定性，但我們仍然專注於我們的長期戰略。我們繼續加快將新產品和解決方案推向市場的節奏，並繼續通過不斷擴大的產品組合與我們各個細分市場的客戶建立勢頭。我們的團隊仍然專注於執行我們的戰略，我想再次感謝我們的員工的創造力、奉獻精神和持續的執行力。

I'll now turn the call over to our CFO, Sherri Luther.

我現在將電話轉給我們的首席財務官 Sherri Luther。

Thank you, Jim. First quarter revenue was $97.3 million, down 2.9% sequentially from the fourth quarter and down about 1% year-over-year. The year-over-year decline was primarily in the consumer segment and was offset by strong growth in both our communications and computing segments as well as in our industrial and automotive segment. Gross margin on a GAAP basis was 59.1% compared to 59.2% in the fourth quarter, up from 58.8% in the year ago first quarter. Our non-GAAP gross margin expanded to 59.8% compared to 59.6% in the prior quarter and was up from 58.6% in the year ago first quarter. The 120 basis points of non-GAAP gross margin expansion year-over-year was driven primarily by execution on our pricing optimization strategy as well as product cost reductions.

謝謝你，吉姆。第一季度收入為 9730 萬美元，環比下降 2.9%，同比下降約 1%。同比下降主要是在消費領域，但被我們的通信和計算領域以及我們的工業和汽車領域的強勁增長所抵消。按 GAAP 計算的毛利率為 59.1%，而第四季度為 59.2%，高於去年同期的 58.8%。我們的非美國通用會計準則毛利率從上一季度的 59.6% 擴大到 59.8%，高於去年第一季度的 58.6%。非 GAAP 毛利率同比增長 120 個基點，主要是由於執行了我們的定價優化策略以及產品成本降低。

Q1 GAAP operating expenses were $47.8 million compared to $43.8 million in the fourth quarter and $45.2 million in Q1 2019. On a non-GAAP basis, operating expenses were $36.1 million compared to $35.3 million in the fourth quarter and $38 million in Q1 2019. In Q1, R&D increased sequentially to $19.1 million as we continue to invest in our product road map. SG&A declined sequentially to $17 million as we continue to drive SG&A spending closer to our target model.

第一季度 GAAP 運營費用為 4780 萬美元，而第四季度為 4380 萬美元，2019 年第一季度為 4520 萬美元。按非公認會計原則計算，運營費用為 3610 萬美元，而第四季度為 3530 萬美元，2019 年第一季度為 3800 萬美元。第一季度，隨著我們繼續投資於我們的產品路線圖，研發費用連續增加到 1910 萬美元。隨著我們繼續推動 SG&A 支出更接近我們的目標模型，SG&A 連續下降至 1700 萬美元。

Q1 GAAP earnings per basic and diluted share was $0.06 compared to $0.10 in Q4 2019 and $0.06 per basic share and $0.05 per diluted share in Q1 2019. Q1 non-GAAP earnings per basic and diluted share was $0.15 compared to $0.17 in Q4 and $0.11 in the year ago quarter.

第一季度 GAAP 每股基本和稀釋後每股收益為 0.06 美元，而 2019 年第四季度為 0.10 美元，2019 年第一季度每股基本和稀釋後每股收益為 0.06 美元和 0.05 美元。第一季度非 GAAP 每股基本和稀釋後收益為 0.15 美元，而第四季度為 0.17 美元，2019 年第一季度為 0.11 美元。一年前的季度。

We continue to focus and execute on cash generation with approximately $21 million in cash from operations in Q1. In addition, given the current environment, we preemptively drew down $50 million on our revolver during the quarter to further solidify our cash position. Our leverage ratio, as defined in our credit agreement, after the drawdown is 1.7 compared to a leverage ratio of 2.4 in the year ago quarter. Our ending cash balance was approximately $177 million. Let me now review our outlook for the second quarter.

我們繼續關注並執行現金生成，第一季度的運營現金約為 2100 萬美元。此外，鑑於當前環境，我們在本季度先發製人地從我們的左輪手槍中提取了 5000 萬美元，以進一步鞏固我們的現金狀況。根據我們的信貸協議的定義，我們的槓桿比率在提款後為 1.7，而去年同期的槓桿比率為 2.4。我們的期末現金餘額約為 1.77 億美元。現在讓我回顧一下我們對第二季度的展望。

Revenue for the second quarter of 2020 is expected to be between $95 million and $105 million. Gross margin is expected to be 60%, plus or minus 1%, on a non-GAAP basis. Total operating expenses for the second quarter are expected to be between $36 million and $37 million on a non-GAAP basis. As we manage through COVID-19, we believe that our long-term growth drivers remain firmly intact. Our focus on execution, our differentiated and innovative product portfolio and our solid balance sheet ensure that we are well positioned to capitalize on increasing customer and market opportunities.

預計 2020 年第二季度的收入將在 9500 萬美元至 1.05 億美元之間。根據非美國通用會計準則，毛利率預計為 60%，上下浮動 1%。按非美國通用會計準則計算，第二季度的總運營費用預計在 3600 萬美元至 3700 萬美元之間。在我們通過 COVID-19 進行管理時，我們相信我們的長期增長動力仍然完好無損。我們專注於執行、差異化和創新的產品組合以及穩健的資產負債表確保我們能夠很好地利用不斷增加的客戶和市場機會。

Operator, we can now open the call for questions.

接線員，我們現在可以打開問題電話了。

(Operator Instructions) Your first question is from Matt Ramsay from Cowen.

（操作員說明）您的第一個問題來自 Cowen 的 Matt Ramsay。

Considering all that's going on, congratulations on the results. Jim, I wanted to ask a couple of questions on -- by division of the revenue that you guys reported and are talking about going forward. Obviously some pretty big moves in mobile and consumer down and also the industrial and automotive business, quite a bit higher than at least I had thought about it coming into this call. So any puts or takes in the supply chain that maybe artificially accelerated some sales in one division or restricted them in others? And just maybe some commentary on how those 2 divisions play out in the second quarter would be helpful.

考慮到所有發生的事情，祝賀結果。吉姆，我想問幾個問題 - 通過你們報告的收入劃分以及正在談論的未來。顯然，在移動和消費者以及工業和汽車業務方面，有一些相當大的舉措，至少比我在這次電話會議中想到的要高得多。那麼供應鏈中的任何投入或投入可能人為地加速了一個部門的某些銷售或限制了其他部門的銷售？也許對這兩個部門在第二季度的表現進行一些評論會有所幫助。

Sure. Thanks, Matt. Yes. So if you look at Q1, we did see strong performance from our industrial and automotive segment. I think it was 5% up sequentially, 14% up year-over-year. I will point out that actually, over the last couple of years, that segment has performed quite well for us certainly relative to the broader market performance. And this is one of the segments that we expect to be a long-term growth driver for the company. There's -- particularly in the industrial segment, there's just -- there's a number of customer -- new customer revenue streams or design wins that continue to ramp and perform well, and so we're quite pleased with the progress in that segment. And again, we do view that as a long-term growth driver for the company.

當然。謝謝，馬特。是的。因此，如果您看一下第一季度，我們確實看到了工業和汽車領域的強勁表現。我認為它連續增長了 5%，同比增長了 14%。我要指出的是，實際上，在過去幾年中，相對於更廣泛的市場表現，該細分市場對我們來說表現相當不錯。這是我們預計將成為公司長期增長動力的細分市場之一。有 - 特別是在工業領域，只有 - 有許多客戶 - 新的客戶收入流或設計勝利繼續增加並表現良好，因此我們對該領域的進展感到非常滿意。同樣，我們確實將其視為公司的長期增長動力。

Now moving forward into Q2 kind of sequentially from Q1 to Q2 in the industrial auto segment, I would expect that segment to kind of be flat to slightly down sequentially. We would expect to start to see some COVID-19 demand related impact to that segment in Q2.

現在進入工業汽車領域從第一季度到第二季度的第二季度，我預計該領域將持平或略有下降。我們希望在第二季度開始看到對該細分市場的一些與 COVID-19 需求相關的影響。

On the consumer segment, in Q1, our consumer segment was certainly impacted by COVID-19 consumer demand. That was primarily localized to the Asia geography but pretty broad-based across our consumer customers in Asia. So that -- yes, we certainly saw a softer demand in Q1 in consumer than we had originally anticipated. I would expect that to continue on into Q2. I would expect the consumer to again be sort of flat to slightly down into Q2.

在消費者領域，在第一季度，我們的消費者領域肯定受到 COVID-19 消費者需求的影響。這主要局限於亞洲地區，但在我們亞洲的消費者客戶中具有相當廣泛的基礎。所以 - 是的，我們當然看到第一季度消費者的需求比我們最初預期的要疲軟。我希望這種情況會持續到第二季度。我希望消費者在第二季度再次持平或略有下降。

And then our third segment comms and computing, from a sequential standpoint, it was flat year-over-year, was 8% up year-over-year. Going into Q2, I would expect that segment to be sequentially up. We're seeing a quite strong demand in that segment. Just a little additional color there is I think with COVID-19 that's obviously put a lot of people working from home that's placed additional pressure on infrastructure. So we're seeing higher demand from the computing segment, things like servers and client computing. And we'd expect a little bit higher demand from the communications segments as well. So hopefully -- Matt, hopefully, that was the color you were looking for.

然後是我們的第三部分通信和計算，從連續的角度來看，它同比持平，同比增長 8%。進入第二季度，我預計該細分市場將依次上升。我們看到該領域的需求非常強勁。我認為 COVID-19 只是增加了一點顏色，這顯然讓很多人在家工作，這給基礎設施帶來了額外的壓力。所以我們看到來自計算領域的更高需求，比如服務器和客戶端計算。我們預計通信領域的需求也會有所增加。希望——馬特，希望那是你要找的顏色。

Jim, that's great. Sherri, a quick one for you hopefully, but maybe it's just a mix of revenue by division or something about the way that you guys have managed working capital. But DSOs have gone up quite a bit over the last, I don't know, 3 or 4 quarters, and obviously, the results have been strong. So I don't want to nitpick, but if you could walk me through sort of what's going on there and just how we expect that. Is that a new normal or -- in the way that you're going to manage the working capital? Or is there something we should expect to change there going forward?

吉姆，那太好了。 Sherri，希望您能快速了解一下，但也許這只是按部門劃分的收入組合，或者與你們管理營運資金的方式有關。但 DSO 在過去的 3 或 4 個季度裡上漲了很多，我不知道，顯然，結果很強勁。所以我不想吹毛求疵，但如果你能告訴我那裡發生了什麼，以及我們是如何期望的。這是一種新常態，還是——以您管理營運資金的方式？或者有什麼我們應該期待改變的地方嗎？

Yes. Thanks, Matt, for the question. I'm going to fill in for Sherri and then do my best since apparently her line dropped. But hopefully, we'll get her back soon, but I'll do my best here. So on DSO, yes, we did see an uptick in DSO in Q1. What's happening there is it has to do with where the demand ends up being serviced within the quarter. So if you look at Q1 demand, our February was quite weak. Our January was kind of normal. February was quite weak versus historicals, and even March was -- got off to a slow start. But demand started to pick up in March, and so what happened is more of our demand was loaded in the back, the last month of the quarter than what has been typical in prior quarters. And so what that did is that, that has the effect of driving up our DSO since the collections for those shipments in the last month of the quarter end up being in the following quarter. And we saw a little bit of that in Q4 as well where demand was loaded a little bit further back in the quarter than prior.

是的。謝謝馬特提出這個問題。我要代替雪莉，然後儘力而為，因為顯然她的台詞掉線了。但希望我們能盡快讓她回來，但我會盡力而為。所以在 DSO 上，是的，我們確實看到第一季度 DSO 有所上升。那裡發生的事情與需求在本季度內最終得到滿足的地方有關。所以如果你看看第一季度的需求，我們的 2 月份非常疲軟。我們的一月很正常。 2 月與歷史數據相比相當疲軟，甚至 3 月也是——起步緩慢。但需求在 3 月份開始回升，所以發生的事情是我們的需求更多地加載在後面，即本季度的最後一個月，而不是前幾個季度的典型情況。因此，這樣做的結果是，這會提高我們的 DSO，因為本季度最後一個月的這些出貨量的收集最終會在下一季度進行。我們在第 4 季度也看到了一些這樣的情況，本季度的需求比之前更晚了一點。

So DSO is something we will work to get back down to more normal levels. We view the current level as elevated, and we will work to get DSO back to more normal levels. Sherri, are you back on?

所以 DSO 是我們將努力恢復到更正常水平的東西。我們認為當前水平已升高，我們將努力使 DSO 恢復到更正常的水平。雪莉，你回來了嗎？

Yes. Sorry about that. I got dropped off.

是的。對於那個很抱歉。我下車了。

Okay. I did my best to cover for you.

好的。我盡力為你掩護。

Okay.

好的。

Your next question is from Tristan Gerra from Baird.

您的下一個問題來自 Baird 的 Tristan Gerra。

So with the guidance in gross margin, you're about 200 basis points away from your target, which is your longer-term target, which is a great achievement. Do you have more leverage in terms of gross margin expansion with existing product and mix to get to that longer-term target? Or do you need the ramp of Nexus and the next-generation platform to get there?

因此，根據毛利率的指導，您距離目標約 200 個基點，這是您的長期目標，這是一項了不起的成就。在現有產品和組合的毛利率擴張方面，您是否有更大的影響力來實現長期目標？或者您是否需要 Nexus 的斜坡和下一代平台才能到達那裡？

Yes. Thanks, Tristan, for the question. I think it's a combination of both. Certainly, as you're aware, in late 2018, we put in place a strategy to drive better pricing. We called it our pricing optimization strategy on existing products, and we also put a strategy in place to drive multiyear product cost reductions. And so both of those strategies, we continue to execute on that, and we will continue to execute on that moving forward. There's still room for more improvement on pricing optimization even on the products that are already in production, and there's certainly more room on product cost improvements. In fact, we have a long-term road map to drive product cost improvements. So we certainly expect to see gross margin expansion from products already in production.

是的。謝謝特里斯坦提出這個問題。我認為這是兩者的結合。當然，如您所知，在 2018 年底，我們制定了一項戰略來推動更好的定價。我們將其稱為現有產品的定價優化策略，我們還制定了一項戰略來推動多年產品成本的降低。因此，我們將繼續執行這兩項戰略，我們將繼續執行這一戰略。即使在已經投產的產品上，在定價優化方面仍有更多改進空間，而且在產品成本改進方面肯定還有更多空間。事實上，我們有一個推動產品成本改進的長期路線圖。因此，我們當然希望看到已經投產的產品的毛利率有所增長。

So also as you mentioned, as we bring some of the new products online, for instance, the products based on our Nexus platform, we do expect those new products to be accretive to the company's overall gross margin. So those will help drive margin improvements as well. And we are certainly very focused on our long-term goal, which is to get above 62% gross margin. And we made steady progress towards that goal, and we expect to continue to make progress.

因此，正如您提到的，當我們將一些新產品上線時，例如基於我們的 Nexus 平台的產品，我們確實希望這些新產品能夠增加公司的整體毛利率。因此，這些也將有助於推動利潤率的提高。我們當然非常關注我們的長期目標，即毛利率超過 62%。我們朝著這個目標取得了穩步進展，我們希望繼續取得進展。

Great. You've mentioned 5G infrastructure at a time when companies have been struggling in the past few quarters to kind of maintain revenue in that segment. What percentage is it roughly of your total top line right now? Is it low single digit? And also, if you could remind us what Huawei was as a percent of revenue last quarter. And do you expect Huawei to grow in the next -- in the coming quarter?

偉大的。你提到 5G 基礎設施時，公司在過去幾個季度一直在努力維持該領域的收入。它現在大約佔您總收入的百分比是多少？是低個位數嗎？而且，如果你能提醒我們華為上個季度佔收入的百分比是多少。您預計華為在下一個季度會增長嗎？

Yes. Thanks, Tristan. Yes, in terms of overall revenue, we don't break out 5G specifically, but it's still a relatively small part of our overall revenue. But because we view it as a good, long-term, multiyear growth driver, it's something we watch very carefully. So for instance, in Q1, again, we saw sequential growth in 5G wireless infrastructure-related revenue. We saw year-over-year growth in Q1, and we expect 5G infrastructure revenue to be a growth driver over a multiyear period, not just for Lattice but for the industry overall. And so it's something we watch very closely, and we believe we're well positioned.

是的。謝謝，特里斯坦。是的，就整體收入而言，我們沒有具體細分 5G，但它仍然是我們整體收入中相對較小的一部分。但因為我們認為它是一個良好的、長期的、多年的增長動力，所以我們非常仔細地觀察它。因此，例如，在第一季度，我們再次看到 5G 無線基礎設施相關收入的連續增長。我們在第一季度看到了同比增長，我們預計 5G 基礎設施收入將在多年內成為增長動力，不僅對萊迪思如此，對整個行業也是如此。所以這是我們密切關注的事情，我們相信我們已經做好了準備。

If you'll recall from our Investor Day, which was about a year ago, almost a year ago, we shared that in 5G systems we enjoy a roughly 30% more content, dollar content in a 5G system than we did in sort of similar 4G systems. So as 5G ramps, we expect to see good growth from that revenue line.

如果你還記得我們的投資者日，那是大約一年前，差不多一年前，我們分享了在 5G 系統中我們享受的內容和 5G 系統中的美元內容比我們在類似的系統中多了大約 30% 4G系統。因此，隨著 5G 的發展，我們預計該收入線將實現良好增長。

And then to your question on Huawei, yes, just as a reminder, we said in the past that, in 2018, Huawei accounted for roughly single digits overall revenue from Lattice's revenue in 2018. We saw that revenue decline in 2019, and we would expect Huawei revenue to decline again this year.

然後關於你關於華為的問題，是的，提醒一下，我們過去說過，在 2018 年，華為佔萊迪思 2018 年收入的總收入大約是個位數。我們看到 2019 年收入下降，我們會預計今年華為營收將再次下滑。

Your next question is from Charlie Anderson from Dougherty & Company.

你的下一個問題來自 Dougherty & Company 的 Charlie Anderson。

I guess you answer my question if you're sitting around the conference table 6 feet away you are all calling in, so that one's out of the way. So I was just curious...

如果你坐在會議桌旁 6 英尺遠的地方，我猜你會回答我的問題，因為你都在呼喚，所以有人不礙事。所以我只是好奇...

Yes, we are adhering to the social distancing. We are following our own rules. Sorry, go ahead.

是的，我們堅持保持社交距離。我們遵循自己的規則。對不起，繼續。

That's right. Excellent. Excellent. So Jim, I wonder if you can maybe just update us on channel inventory, distributor inventory. How are people acting during this pandemic versus normal? Is there any buffer or safety stock being created? Just any general comments there, and then I've got a follow-up.

這是正確的。出色的。出色的。所以吉姆，我想知道你是否可以向我們更新渠道庫存、分銷商庫存。與正常情況相比，人們在這種大流行期間的行為如何？是否正在創建任何緩衝或安全庫存？只是那裡的任何一般性評論，然後我會進行跟進。

Sure. Thanks, Charlie. On channel inventory, as we -- we have very good visibility on our distributor inventory, and where we ended Q1 was, I would call it, a very healthy level. If we look at just historically what is normal levels of inventory for our distributors, we ended right in the middle of the range of what we view as normal inventory for our distributors. And so we view it as healthy at this point and healthy from 2 perspectives, healthy from the standpoint of not being too much inventory but also healthy from the standpoint of being able to service customer demand as well. And so yes, distributor inventory in good shape. And we have not, to date, seen any signs of, as you said, buffering or safety stock, but it's something that we're watching very closely, and we definitely keep a close eye on it. So hopefully, that's the color you were looking for on channel inventory.

當然。謝謝，查理。在渠道庫存方面，我們對我們的分銷商庫存有很好的了解，而我們在第一季度結束時，我稱之為非常健康的水平。如果我們從歷史上看我們的分銷商的正常庫存水平是多少，我們就會發現我們恰好處於我們認為的分銷商正常庫存範圍的中間。因此，我們認為它在這一點上是健康的，從兩個角度來看是健康的，從沒有太多庫存的角度來看是健康的，從能夠滿足客戶需求的角度來看也是健康的。所以是的，分銷商庫存狀況良好。到目前為止，我們還沒有看到任何跡象表明，正如你所說的，緩衝或安全庫存，但這是我們正在密切關注的事情，我們肯定會密切關注它。所以希望這就是您在渠道庫存中尋找的顏色。

No, that's perfect. And then for my follow-up, you mentioned client computing within computing was also a pocket of strength, and I know others are seeing that trend as well. Maybe if you could just update us, Jim, roughly where Lattice stands as far as client computing as a market. And what are some of the opportunities that you see in the horizon in terms of the designs that you can potentially pursue within that end market?

不，那是完美的。然後對於我的後續行動，你提到計算中的客戶端計算也是一個優勢，我知道其他人也看到了這種趨勢。吉姆，也許你可以告訴我們萊迪思在客戶端計算市場中的大致位置。就您可以在該終端市場中追求的設計而言，您在地平線上看到了哪些機會？

Yes. Thanks, Charlie. Yes. So in client computing, that -- in addition to computing in the server segment, that's been a nice growth area for us as well. In client computing, there's a couple of areas that we see as good potential opportunity for us. If you think about we've been talking about how our products are used for artificial intelligence, for inference at the edge of the network, for building intelligence into devices at the edge of the network, well, certainly client devices, client computing devices are edge devices, and so we do see opportunity for our products to bring artificial intelligence capabilities to client devices. And so that's one potential area of growth. Similarly, we've talked about our MachXO3D product, which is our FPGA with special security processing. And that is -- that's used for a platform root of trust in server applications, while that same security concept could be applied to actually a variety of devices, including client computing devices but also networking devices, et cetera. So we do see some opportunity for potential growth in providing security or platform root-of-trust type security in client devices. So that's a couple of places that we see for future growth in the client computing space.

是的。謝謝，查理。是的。因此，在客戶端計算中，除了服務器部分的計算之外，這對我們來說也是一個很好的增長領域。在客戶端計算中，我們認為有幾個領域對我們來說是很好的潛在機會。如果你想一想我們一直在談論我們的產品如何用於人工智能，用於網絡邊緣的推理，用於在網絡邊緣的設備中構建智能，當然，客戶端設備、客戶端計算設備是邊緣設備，因此我們確實看到了我們的產品為客戶端設備帶來人工智能功能的機會。因此，這是一個潛在的增長領域。同樣，我們談到了我們的 MachXO3D 產品，這是我們具有特殊安全處理的 FPGA。那就是 - 它用於服務器應用程序中的平台信任根，而相同的安全概念實際上可以應用於各種設備，包括客戶端計算設備以及網絡設備等。因此，我們確實看到了在客戶端設備中提供安全性或平台信任根類型安全性方面的潛在增長機會。所以這是我們在客戶端計算領域看到未來增長的幾個地方。

Your next question is from Christopher Rolland from Susquehanna.

你的下一個問題來自 Susquehanna 的 Christopher Rolland。

Just wanted to follow up on consumer, and I know it's hard to quantify. And I certainly understand the Asian consumer dynamic there. But was part of the weakness you guys shying away from lower-margin business? If so, how do you kind of quantify that? And bigger picture, how much more pruning of lower-margin consumer do you guys have to go? What kind of a headwind do you think it might be for this year?

只是想跟進消費者，我知道這很難量化。我當然了解那裡的亞洲消費者動態。但是你們迴避低利潤業務的部分弱點是什麼？如果是這樣，你如何量化它？更大的圖景，你們還要削減多少低利潤消費者？您認為今年可能會出現什麼樣的逆風？

Yes. It's a good question, Chris. And so in addition to -- clearly, in Q1, we saw impact to our consumer segment due to COVID-19. And also consumer is normally just seasonally down from Q4 to Q1, so we had both of those. Plus, as you mentioned, if you step back and look over a multiyear period, and we had shared this back at our Investor Day a year ago, we are expecting our revenue to shift over time and for a greater percentage of our revenue to come from our other market segments, industrial and automotive and communications and computing and for a smaller percentage over time to come from consumer. What we're doing within the consumer segment is we're changing -- really transitioning the type of revenue and the type of design wins that we're winning within consumer. So we're focused much more on prosumer applications, so these are high-end consumer applications. These type of applications are applications where our products can really help differentiate our customers' systems, and they have longer multiyear revenue streams. They have higher gross margins. And we are executing that transition within consumer right now so -- but we do -- consumer is an important segment for us. It's just a segment where we're in the middle of that transition to longer revenue streams and higher margins.

是的。這是個好問題，克里斯。因此，除了 - 顯然，在第一季度，我們看到了 COVID-19 對我們的消費者群體的影響。而且消費者通常只是從第四季度到第一季度季節性下降，所以我們同時擁有這兩個。另外，正如你提到的，如果你退後一步，回顧多年，我們在一年前的投資者日分享了這一點，我們預計我們的收入會隨著時間的推移而變化，並且我們的收入比例會更大來自我們的其他細分市場，工業和汽車以及通信和計算，並且隨著時間的推移來自消費者的比例較小。我們在消費者領域所做的是我們正在改變 - 真正轉變我們在消費者中贏得的收入類型和設計勝利類型。所以我們更關注專業消費者應用程序，所以這些是高端消費者應用程序。這些類型的應用程序是我們的產品可以真正幫助區分客戶系統的應用程序，並且它們具有更長的多年收入流。他們有更高的毛利率。我們現在正在消費者內部執行這種轉變 - 但我們這樣做 - 消費者對我們來說是一個重要的部分。這只是我們正處於向更長的收入流和更高的利潤率過渡的中間部分。

Great. And on the industrial side of things, and I appreciate that new industrial programs are ramping, but with industrial and auto, that segment, for others, there seems to be some more structural worries with the virus here. Do you think these programs are going to be enough to give you a material difference versus your peers? Or is this more of a nearer-term phenomenon for you? Do you think you can kind of grow through what could be a downturn here? And do you think that there are any supply chain issues buying ahead, for example, on supply chain worries that are boosting that in the near term?

偉大的。在工業方面，我很欣賞新的工業項目正在興起，但對於工業和汽車這一領域，對於其他領域，似乎對病毒的結構性擔憂更多。您認為這些計劃足以讓您與同齡人相比有實質性的不同嗎？或者這對您來說更像是一個近期現象？你認為你可以通過這裡可能出現的低迷來實現增長嗎？你認為提前購買是否存在任何供應鏈問題，例如，供應鏈擔憂會在短期內推動這種情況？

Yes. Thanks, Chris. Yes. So first of all, in the industrial and automotive segment, maybe it would be helpful for me to point out that the vast majority of revenue within industrial and automotive is industrial, and so automotive still remains a relatively small part of our industrial auto segment. Now we do think that automotive is a longer-term growth opportunity for the company. We have won several important design wins in the automotive segment that we expect to be ramping over the course of time. And those design wins do ramp slower in automotive, but we do expect automotive to be a nice growth vector for the company over time. But at this point in time, it is a small portion of that revenue segment.

是的。謝謝，克里斯。是的。因此，首先，在工業和汽車領域，我可能會指出工業和汽車領域的絕大部分收入是工業收入，因此汽車仍然是我們工業汽車領域中相對較小的一部分。現在我們確實認為汽車是公司的長期增長機會。我們在汽車領域贏得了幾項重要的設計勝利，我們預計這些勝利會隨著時間的推移而增加。這些設計勝利在汽車領域的增長速度確實較慢，但我們確實希望汽車隨著時間的推移成為公司的一個很好的增長載體。但目前，它只佔該收入部分的一小部分。

Now industrial, which is the bulk of that revenue, if you look at, over the last couple of years, at how our industrial auto segment has performed relative to market, we've actually had quite strong performance for the last couple of years relative to market. And we expect this segment to continue to be a long-term growth opportunity for us. Our products are just very well suited for a number of the secular trends that we're seeing in industrial that I think will be over a multiyear period, things like industrial automation, increased use of robotics, touchless control where the operator doesn't have to touch the machine whether it's through voice command or through hand gestures, embedded vision, so these are the type of applications that our products are just very, very well suited for low-power, small FPGAs that can do inferencing in these applications are well suited. And so we're seeing nice design win traction within this segment, and we expect it to be long-term growth.

現在工業，這是收入的大部分，如果你看看過去幾年我們的工業汽車部門相對於市場的表現，我們實際上在過去幾年相對於市場表現相當強勁市場。我們預計這一細分市場將繼續成為我們的長期增長機會。我們的產品非常適合我們在工業中看到的許多長期趨勢，我認為這些趨勢將持續多年，例如工業自動化、機器人技術的使用增加、操作員沒有的非接觸式控制觸摸機器，無論是通過語音命令還是通過手勢，嵌入式視覺，所以這些都是我們的產品非常非常適合可以在這些應用程序中進行推理的低功耗小型 FPGA 的應用程序類型適合。因此，我們看到漂亮的設計贏得了這一細分市場的牽引力，我們預計它將實現長期增長。

Now in the short term, more tactically, for instance, moving in from Q1 to Q2, yes, we would expect some potential softness in this segment due to COVID-19 impact on demand in the industrial segment. So moving into Q2, we would expect this segment to be flat to down in this -- in Q2. But overall, over the long term, we expect it to be a growth area for us.

現在在短期內，更具戰術性，例如，從第一季度進入第二季度，是的，由於 COVID-19 對工業領域需求的影響，我們預計該領域可能會出現一些疲軟。因此，進入第二季度，我們預計該細分市場在第二季度將持平或下降。但總的來說，從長遠來看，我們預計它會成為我們的一個增長領域。

You did ask about supply chain, what we're seeing. Right now our...

您確實詢問了我們所看到的供應鏈。現在我們的...

Yes, just any buy ahead.

是的，只要提前購買。

Yes, we -- I was going to say, we don't see any signs of that. I think -- I don't know if your question was specific to industrial or just in general, but we haven't seen any signs of buy ahead yet. It's something that we're watching very carefully for. We're very sensitive to that. We watch very carefully what we ship into distributors and what gets shipped out of our distributors. But to date, we haven't seen any signs of buy aheads.

是的，我們——我要說的是，我們沒有看到任何跡象。我想——我不知道你的問題是針對工業的還是一般的，但我們還沒有看到任何提前購買的跡象。這是我們正在非常仔細觀察的事情。我們對此非常敏感。我們非常仔細地觀察我們運送給分銷商的東西以及從我們的分銷商運出的東西。但迄今為止，我們還沒有看到任何提前購買的跡象。

(Operator Instructions) Your next question is from Alessandra Vecchi from William Blair.

（操作員說明）你的下一個問題來自威廉布萊爾的亞歷山德拉維奇。

Congratulations on a great quarter and outlook in a tough environment. Just on the Nexus platform, I know it's very early with the launch that's having been in December. But the time you talked about 65 customers, 35 early access, have you sort of seen any of these early access customers push out interest or indicate any product delays at this point that are COVID related? Or how do we sort of think of that even if revenue is not really expected until 2021?

祝賀在艱難的環境中取得了出色的季度和前景。就 Nexus 平台而言，我知道 12 月份的發布還為時過早。但是當你談到 65 個客戶，35 個搶先體驗時，你是否看到過這些搶先體驗客戶中的任何一個表現出興趣或表明此時與 COVID 相關的任何產品延遲？或者，即使到 2021 年才真正預計到收入，我們又如何看待這一點？

Yes. I would say that it's a good question, Alex. In general, not just our Nexus platform but some of the other products, new products that we launched last year, in general, we're seeing very healthy levels of customer activity and just customer intensity on our design wins and in the design-in programs that we're working with online. To date, we haven't seen any COVID-19 impact in terms of customer programs. Our -- first of all, our Lattice team, I believe, both the sales and our application engineering team have done just a great job continuing to support our customers despite COVID-19, despite work from home, and we continue to see good healthy levels of activity and for things -- and things are progressing well.

是的。我會說這是一個很好的問題，亞歷克斯。總的來說，不僅僅是我們的 Nexus 平台，還有我們去年推出的其他一些產品，新產品，總的來說，我們看到了非常健康的客戶活動水平，以及客戶對我們的設計勝利和設計導入的熱情我們在線使用的程序。迄今為止，我們還沒有看到 COVID-19 對客戶計劃產生任何影響。我們——首先，我們的 Lattice 團隊，我相信，儘管 COVID-19，儘管在家工作，但銷售和我們的應用工程團隊都做得很好，繼續支持我們的客戶，我們繼續看到良好的健康狀況活動水平和事情 - 事情進展順利。

On Nexus, in particular, yes, when we launched Nexus in December, we had 65 customers engaged. That's certainly grown since then. We're now over 100 customers engaged. We continue to see very strong interest in the platform, very strong design interest, a good design funnel. The platform is quite competitive. It's the only FPGA products that are on FD-SOI technology, which is semiconductor technology that offers very good power efficiency. And combined with our own architectural enhancements, we're able to deliver up to 75 better power efficient -- 75% better power efficiency versus our competition. And so that's really compelling to our customer base, and we're seeing just very strong design traction. So we're quite pleased with the progress, and obviously, despite COVID-19, we're very focused on making sure that we continue to make good progress with our customers across Nexus and all our all of our new products.

特別是在 Nexus 上，是的，當我們在 12 月推出 Nexus 時，我們有 65 個客戶參與。那肯定是從那時起增長的。我們現在有 100 多個客戶參與。我們繼續看到對該平台非常濃厚的興趣，非常濃厚的設計興趣，一個很好的設計漏斗。該平台具有相當的競爭力。它是唯一採用 FD-SOI 技術的 FPGA 產品，這種半導體技術具有非常好的電源效率。結合我們自己的架構改進，我們能夠提供高達 75 倍的能效——與我們的競爭對手相比，能效提高 75%。所以這對我們的客戶群來說真的很有吸引力，我們看到了非常強大的設計吸引力。因此，我們對取得的進展感到非常滿意，顯然，儘管有 COVID-19，但我們非常專注於確保我們在 Nexus 和所有新產品上繼續與客戶取得良好進展。

Great. And then just one more to that extent. You've always talked about sort of broad customer adoptions or interest across markets for Nexus, including robotics and industrial automation and communications. As the customer count has sort of grown, is -- for -- in terms of initial interest or which end market can maybe sort of lead the charge, is anything standing out in particular?

偉大的。然後再到那個程度。你一直在談論 Nexus 的廣泛客戶採用或跨市場的興趣，包括機器人技術和工業自動化和通信。隨著客戶數量的增長，就最初的興趣或哪個終端市場可能引領潮流而言，是否有什麼特別突出的？

No, we continue to see really good broad-based adoption across multiple markets. That value proposition that I mentioned earlier of 75% better power efficiency versus competitive devices, that's a tremendous advantage to customers in just about every market segment. Every customer is faced with power constraints at the system level, and so that sort of power efficiency is a big benefit to our customers regardless of their application.

不，我們繼續看到跨多個市場的廣泛採用。我之前提到的與競爭設備相比能效提高 75% 的價值主張，對於幾乎每個細分市場的客戶來說都是一個巨大的優勢。每個客戶都面臨著系統級的功率限制，因此這種功率效率對我們的客戶來說是一個很大的好處，無論他們的應用是什麼。

I think if you were to ask what -- which market segments would likely enter production most quickly, typically, our consumer segment is the one that is fastest in terms of time to revenue. So as our first Nexus devices enter production, I would expect them to first be probably consumer-related devices or devices for the computing segment. Those are typically our segments that are fastest in terms of time to revenue. But in terms of design win funnel, we're seeing good funnel across all the market segments.

我想如果你要問什麼——哪些細分市場可能最快進入生產，通常，我們的消費者細分市場是在實現收入方面最快的細分市場。因此，當我們的第一批 Nexus 設備投入生產時，我希望它們首先可能是與消費者相關的設備或用於計算領域的設備。這些通常是我們在創收時間方面最快的細分市場。但就設計取勝漏斗而言，我們在所有細分市場都看到了良好的漏斗。

Great. Great. That's very helpful. And then one last one if I can. I know you touched already on gross margin and sort of the 3 levers you have to pull. This quarter was quite impressive from a product gross margin growth perspective in the face of down sequential licensing revenue. I mean, obviously, some of that's mix and per what you said, pricing optimization and product cost reduction. But I'm just curious, as you're sort of a year later or a year plus later from the Analyst Day, if you've uncovered sort of additional shoots or levers to pull within pricing optimization and cost reductions, I think you've talked about 9 initiatives in the past, just curious if that number has sort of grown over time.

偉大的。偉大的。這很有幫助。如果可以的話，最後一張。我知道你已經談到了毛利率和你必須拉動的 3 個槓桿。面對連續許可收入下降，從產品毛利率增長的角度來看，本季度相當可觀。我的意思是，很明顯，其中一些是混合的，按照你所說的，定價優化和產品成本降低。但我只是好奇，因為你是在分析師日之後的一年或一年多之後，如果你發現了一些額外的芽或槓桿來推動定價優化和成本降低，我認為你'過去我們談過 9 項舉措，只是好奇這個數字是否隨著時間的推移而增長。

Absolutely. So we continue to find areas to continue to improve pricing and pricing optimization. We put that initial strategy in place at the end of 2018 and started executing in 2019. You saw great progress on gross margin in 2019. And those 9 initiatives that we first put in place, many of those initiatives are continuing into 2020. But we have added some additional focus areas as well over time. And so we view pricing optimization as an ongoing process, and we don't believe we're kind of ever done with that. There's always room for improvement, and so we continue to be focused there. And also product cost reductions, at the end of '18, we did put in place a multiyear road map of product cost reductions that we're executing to. We expect to execute to that in 2020 and beyond, all to help carry us to that goal of driving to greater than 62% gross margin, which is the business model target that we gave at our Investor Day last year.

絕對地。因此，我們繼續尋找可以繼續改進定價和定價優化的領域。我們在 2018 年底制定了初始戰略，並於 2019 年開始執行。您看到 2019 年毛利率取得了巨大進步。我們首先實施的那 9 項舉措，其中許多舉措將持續到 2020 年。但我們隨著時間的推移，也增加了一些額外的重點領域。因此，我們將定價優化視為一個持續的過程，我們不認為我們已經完成了這一過程。總有改進的餘地，因此我們將繼續專注於此。還有產品成本降低，在 18 年底，我們確實制定了我們正在執行的產品成本降低的多年路線圖。我們希望在 2020 年及以後實現這一目標，所有這些都是為了幫助我們實現毛利率超過 62% 的目標，這是我們在去年投資者日提出的商業模式目標。

The other thing that, as I mentioned earlier, that will help improve margins as well is as we bring some of the new products online, for instance, the Nexus products that you asked about, we expect those products to be accretive to our overall corporate gross margin. So those should help drive gross margin expansion as well.

正如我之前提到的，另一件事也將有助於提高利潤率，因為我們將一些新產品上線，例如您詢問的 Nexus 產品，我們希望這些產品能夠增加我們整個公司的收益毛利率。因此，這些也應該有助於推動毛利率的增長。

Your next question is from Richard Shannon from Craig-Hallum.

你的下一個問題來自 Craig-Hallum 的 Richard Shannon。

Jim, I guess, the first one in the industrial and automotive segments, I'm curious what -- how did that segment end up in terms of revenues versus your original expectations you gave us in early February? And could you give us also what the relative trends were between North America and rest of world, specifically Asia?

吉姆，我猜是工業和汽車領域的第一個，我很好奇——這個領域的收入與你在 2 月初給我們的最初預期相比如何？您能否也告訴我們北美與世界其他地區（尤其是亞洲）之間的相對趨勢是什麼？

Yes. First of all, on the first part of your question relative to our original expectations, I would say it ended up being a little bit better than what we had expected, pretty much in line with what we had expected, maybe slightly better. And that helped offset a little bit of the worse consumer results that we -- or worse results than what we had expected. And then, Richard, the second part of your question, can you remind me, was...

是的。首先，關於你的問題的第一部分相對於我們最初的預期，我會說它最終比我們預期的要好一點，非常符合我們的預期，可能稍微好一點。這有助於抵消我們較差的消費者結果——或者比我們預期的更差的結果。然後，理查德，你問題的第二部分，你能提醒我一下，是……

Geographic differences, North America versus rest of world, specifically Asia.

地理差異，北美與世界其他地區，特別是亞洲。

Yes. Thank you. So in Q1, North America and Europe performed pretty much as we had expected. They were kind of right on target. It was really Asia that was weaker or softer than we had expected and again, particularly in the consumer segment and also mostly in the China geography. And so yes, that's where the softness relative to our original guidance for Q1 was.

是的。謝謝。因此，在第一季度，北美和歐洲的表現與我們預期的差不多。他們有點像目標。確實是亞洲比我們預期的要弱或軟，尤其是在消費領域，而且主要是在中國地區。所以是的，這就是相對於我們對第一季度的原始指導而言的軟弱之處。

Okay. That's helpful. My follow-up question is in your comms and computing segment. I think you said to a prior question, you expected that segment to grow sequentially in the second quarter. Curious if both the comms and computing parts are expected to grow? And within comms, do you see the non-5G part continue to grow as well?

好的。這很有幫助。我的後續問題是在您的通信和計算部分。我想你對先前的問題說過，你預計該部分將在第二季度連續增長。想知道通信和計算部分是否都有望增長？在通信中，您是否看到非 5G 部分也在繼續增長？

Yes. So comms and computing overall, we would expect to grow. I think that's primarily -- we're expecting that to primarily be driven by compute. What we're seeing is, with COVID-19, with people working from home, that's brining in a lot of pressure on the infrastructure. We're certainly seeing strong orders from our server customers and our computing customers in general, which we think will help drive sequential growth in that segment. We would expect 5G revenue to continue to be strong into Q2. The non-5G revenue in our communications segment, that, we would expect to probably be flattish sequentially. So hopefully, that gives you a little bit more color in that segment.

是的。因此，總體而言，我們預計通信和計算會增長。我認為這主要是——我們期望它主要由計算驅動。我們看到的是，對於 COVID-19，人們在家工作，這給基礎設施帶來了很大壓力。我們肯定會看到來自服務器客戶和一般計算客戶的強勁訂單，我們認為這將有助於推動該領域的連續增長。我們預計 5G 收入將在第二季度繼續保持強勁勢頭。我們通信部門的非 5G 收入，我們預計可能會連續持平。所以希望這能讓你在那個部分有更多的色彩。

(Operator Instructions) Your next question is from Ruben Roy from Benchmark.

（操作員說明）您的下一個問題來自 Benchmark 的 Ruben Roy。

I had a -- and congrats for executing so well in the challenging environment. I had a question on some earlier comments around China. I understand kind of the Huawei dynamics, but there are, I think, some new rules that the BIS is putting out there, which potentially remove some civilian exceptions. I'm wondering if you've had a chance to think about potential implications because it seems like they've called out FPGAs and FPGA shipments amongst other tech into China and some other countries, so any early thoughts on that would be helpful.

我有一個——並祝賀你在充滿挑戰的環境中表現得如此出色。我對之前關於中國的一些評論有疑問。我了解華為的一些動態，但我認為 BIS 正在製定一些新規則，這些規則可能會消除一些民用例外。我想知道您是否有機會考慮潛在的影響，因為他們似乎已經將 FPGA 和 FPGA 與其他技術一起運往中國和其他一些國家，所以任何早期的想法都會有所幫助。

Yes. Thanks, Ruben. So clearly, that announcement was just made yesterday, and we've only got about a day to digest it and assess what sort of impact it would have to Lattice. But our initial read of that is that based on where our products are manufactured and then also based on the current export control classifications for our products, we don't believe there would be an impact to the products that we're currently shipping.

是的。謝謝，魯本。很明顯，該公告是昨天才發布的，我們只有大約一天的時間來消化它並評估它會對萊迪思產生什麼樣的影響。但我們的初步解讀是，根據我們產品的製造地，然後還根據我們產品的當前出口管制分類，我們認為這不會對我們目前運輸的產品產生影響。

And so the other thing that I would add is that our understanding is that there's a 60-day feedback and comment period for the industry to provide over the next 60 days that would -- before this would potentially take effect. And so we don't believe this would have any impact to our Q2 business. But of course, that's our early read. We'll continue to assess the situation as it evolves. And then I'd probably just take the opportunity to reiterate, of course, we comply with all export restrictions today, and we would absolutely continue to do that.

因此，我要補充的另一件事是，我們的理解是，在接下來的 60 天內，行業有 60 天的反饋和評論期，這可能會生效。因此，我們認為這不會對我們第二季度的業務產生任何影響。但當然，那是我們的早期閱讀。隨著情況的發展，我們將繼續評估情況。然後我可能會藉此機會重申，當然，我們今天遵守所有出口限制，我們絕對會繼續這樣做。

Yes. That's very helpful, Jim. I appreciate that. And yes, I understand it's early, so we'll see how that plays out. Just a quick follow-up on some of the commentary around software. It's great that you guys are continuing to execute on the plan for the products later this year. As you think about the success and the initial feedback around sensAI, wondering if you're planning on additional software stacks beyond the 2 that you mentioned today on the call. And are you getting customer feedback on these software stacks? I'm wondering if they're helping you define some of the IP that's going to be included and if that's helping kind of point your direction into how you're thinking about that part of the business and product categories as you think longer term.

是的。這很有幫助，吉姆。我很感激。是的，我知道現在還早，所以我們會看看結果如何。只是快速跟進一些關於軟件的評論。很高興你們在今年晚些時候繼續執行產品計劃。當您考慮 sensAI 的成功和初步反饋時，想知道您是否計劃在您今天在電話會議上提到的 2 個軟件堆棧之外開發其他軟件堆棧。您是否收到客戶對這些軟件堆棧的反饋？我想知道他們是否正在幫助您定義一些將要包含的 IP，以及這是否有助於將您的方向指向您如何考慮長期考慮的業務和產品類別的這一部分。

Yes. Thanks, Ruben. So certainly, we're seeing good customer activity on sensAI. That was the first installment in our software solution stack portfolio. We continue to see actually good traction across a number of different markets. In February, just this past February, we put in place a second installment. That was our machine vision, mVision, embedded vision software stack, again, really good customer reception but also a great reception from the industry. We won a Best in Show award from one of the industry exhibitions, and so that was good to see. So that's 2 of the software stacks in our portfolio.

是的。謝謝，魯本。當然，我們在 sensAI 上看到了良好的客戶活動。那是我們軟件解決方案堆棧組合中的第一部分。我們繼續看到許多不同市場的實際良好牽引力。 2 月，就在剛剛過去的 2 月，我們推出了第二期。那是我們的機器視覺、mVision、嵌入式視覺軟件堆棧，再次獲得了非常好的客戶接待，同時也受到了業界的好評。我們從一個行業展覽中獲得了最佳展示獎，因此很高興看到。這就是我們產品組合中的 2 個軟件堆棧。

The third software stack comes out in the second half of this year. That remains on track for delivery to our customers in the back half of this year, and that's for security. So basically, think about it as security -- hardware level security for all sorts of edge applications. And so we'll launch that in the second half of this year.

第三個軟件堆棧將於今年下半年問世。這仍然有望在今年下半年交付給我們的客戶，這是為了安全。所以基本上，將其視為安全性——各種邊緣應用程序的硬件級安全性。因此，我們將在今年下半年推出它。

And then we are contemplating additional software solution packages beyond that. We haven't announced which ones beyond that, but we are certainly working closely with our customers to understand what additional software solutions would be helpful beyond that. This is a key part of our R&D strategy. Of course, we're -- clearly, we're investing in our hardware -- the hardware part of our road map and bringing new devices out, bringing them out at a faster cadence. But the other big part of our R&D strategy is to really beef up and improve the software level solutions that we have so that we can allow customers to adopt our devices much more quickly, bring them to market much more quickly. So this is definitely a key part of our strategy moving forward.

然後我們正在考慮除此之外的其他軟件解決方案包。我們還沒有宣布除此之外還有哪些，但我們肯定會與我們的客戶密切合作，以了解除此之外還有哪些其他軟件解決方案會有所幫助。這是我們研發戰略的關鍵部分。當然，我們 - 顯然，我們正在投資我們的硬件 - 我們路線圖的硬件部分並推出新設備，以更快的節奏推出它們。但我們研發戰略的另一重要部分是真正加強和改進我們擁有的軟件級解決方案，以便我們可以讓客戶更快地採用我們的設備，更快地將它們推向市場。所以這絕對是我們未來戰略的關鍵部分。

(Operator Instructions) Your next question is from David Duley from Steelhead Securities.

（操作員說明）你的下一個問題來自 Steelhead Securities 的 David Duley。

I had just a couple of follow-up questions to topics that have already been discussed. I guess, first, what -- you mentioned the COVID impact, I think, in the first quarter. What do you think the impact to revenue would be in the second quarter? And maybe as a follow-on to that, if you could just talk about what you're hearing from your customers for the second half of the year.

對於已經討論過的主題，我只有幾個後續問題。我想，首先，你在第一季度提到了 COVID 的影響。您認為第二季度對收入的影響是什麼？也許作為後續行動，如果你能談談今年下半年你從客戶那裡聽到的消息。

Okay. Thanks, David. So in Q2, our guidance really factors in what we think is the impact to COVID or to our demand -- our Q2 demand from COVID-19. If you look at the midpoint of our guidance, that's really our best estimate based on all the data we have to date on the outlook for our revenue. That's based on the billings and backlog that we have to date as well as the forecast for the remainder of the quarter for both our distis as well as our direct customers in terms of what they need for the remainder of the quarter. So that midpoint is our best estimate based on the data we have to date.

好的。謝謝，大衛。因此，在第二季度，我們的指導意見真正考慮了我們認為對 COVID 或我們的需求的影響——我們對 COVID-19 的第二季度需求。如果你看一下我們指導的中點，那確實是我們根據迄今為止對收入前景的所有數據做出的最佳估計。這是基於我們迄今為止的賬單和積壓訂單以及我們的分銷商和我們的直接客戶在本季度剩餘時間的需求方面對本季度剩餘時間的預測。因此，中點是我們根據迄今為止的數據得出的最佳估計。

And then if you notice, we did actually widen the range that we gave this quarter versus prior quarters, a little bit wider range, plus or minus 5%. And that's to account for potential variability due to COVID-19, variability on either the downside or the upside of that midpoint. And then in terms of second half, it's still very difficult to gauge. I think you'd ask what our customers say. I think it's very difficult for our customers to gauge what will be the COVID-19 impact to demand in the back half of this year. Certainly, we're very close to our customers talking to them on a regular basis. And they're -- the customers -- we do have a customer forecast for second half of the year. Now we don't generally provide guidance that far out, but we're working very closely with our customers to make sure that we meet their demand for not just Q2 but for second half. And yes, I think it's just -- it's really tough to tell what sort of impact COVID-19 will have further out this year.

然後，如果你注意到的話，我們實際上確實擴大了本季度與前幾個季度相比的範圍，範圍稍微擴大一點，上下 5%。這是為了解釋由於 COVID-19 引起的潛在可變性，即中點的下行或上行的可變性。然後就下半場而言，仍然很難衡量。我想你會問我們的客戶怎麼說。我認為我們的客戶很難衡量 COVID-19 對今年下半年需求的影響。當然，我們非常接近定期與客戶交談的客戶。他們是——客戶——我們確實有下半年的客戶預測。現在我們通常不會提供那麼遠的指導，但我們正在與客戶密切合作，以確保我們不僅滿足他們對第二季度而且對下半年的需求。是的，我認為這只是——很難說 COVID-19 在今年會產生什麼樣的影響。

So I guess that's safe to assume that the customers haven't really changed their forecast for the second half because they just don't know.

所以我想可以安全地假設客戶並沒有真正改變他們對下半年的預測，因為他們只是不知道。

Usually, we get a pretty good forecast out through Q3. So for instance, we're seeing billing and backlog now for -- or, sorry, just backlog for Q3. We have forecasts for, in particular, for programs that are ramping. For programs that are ramping in the back half of the year, we would have forecast of that second half ramp to ensure that we have the supply to meet those ramps. So that would be the visibility that we'd have in the back half of the year.

通常，我們會在第三季度得到一個很好的預測。因此，例如，我們現在看到計費和積壓——或者，抱歉，只是第三季度的積壓。我們有預測，特別是對於正在增加的計劃。對於在今年下半年增加的項目，我們會預測下半年的增加，以確保我們有供應來滿足這些增加。這就是我們在今年下半年的能見度。

Okay. And then has your business -- or do you see signs of recovery from -- in your business in Asia or in China specifically just because those would seem to be the geographic regions that most likely saw a demand impact first? I'm just wondering if they're starting to get better at this point.

好的。然後，您在亞洲或中國的業務——或者您是否看到復甦的跡象——特別是因為這些地區似乎是最有可能首先受到需求影響的地理區域？我只是想知道他們此時是否開始好轉。

Yes. Thanks, David. We certainly saw, in China, in particular, we certainly saw very slow demand through the end of February and into the beginning of March. That started to pick up significantly at the end of March, and we've seen that strong demand in China or in Asia in general continue on through the beginning of the quarter. And so yes, we definitely saw a pickup in China demand kind of in -- I would say it started in kind of mid-part of March and into the second half of March.

是的。謝謝，大衛。我們當然看到，特別是在中國，我們確實看到從 2 月底到 3 月初的需求非常緩慢。這在 3 月底開始顯著回升，我們看到中國或整個亞洲的強勁需求一直持續到本季度初。所以是的，我們確實看到了中國需求的回升——我想說它是從 3 月中旬到 3 月下半月開始的。

Excellent. Final thing for me is have you seen your -- what currently are your lead times? And have they extended because of any sort of supply issues from your foundries and shipments or anything like that? Any information there you could share with us would be most helpful.

出色的。對我來說，最後一件事是你看到你的——你目前的交貨時間是多少？他們是否因為您的鑄造廠和運輸或類似問題的任何供應問題而延長？您可以與我們分享的任何信息都將非常有幫助。

Sure. We are working really closely with our suppliers to make sure that we meet all customer demand. I would say that right now we are absolutely meeting all customer demand. We're working closely with our suppliers to make sure that, that stays the case. We are taking the opportunity in Q2 to probably build a little bit of Lattice inventory. This would be inventory internal Lattice on high-demand products and high running products that we could potentially see a snapback or a surge in demand. And so we'll probably be building a bit of inventory from Q1 to Q2 on those high-demand programs. And then we are also -- we're -- where we have some long lead time ingredients for our products, things like substrates, we are making sure that we order well in advance and that we're well covered for our demand moving forward. So certainly, something we're watching very carefully and making sure that we continue to do a good job to meet our customer demand.

當然。我們正在與我們的供應商密切合作，以確保我們滿足所有客戶的需求。我會說現在我們絕對滿足所有客戶的需求。我們正在與我們的供應商密切合作，以確保保持這種情況。我們正在利用第二季度的機會建立一些萊迪思庫存。這將是高需求產品和高運行產品的內部萊迪思庫存，我們可能會看到需求回升或激增。因此，我們可能會在第一季度到第二季度為這些高需求項目建立一些庫存。然後我們也——我們——我們的產品有一些交貨期很長的成分，比如基材，我們確保我們提前訂購，並且我們能夠很好地滿足我們未來的需求.所以當然，我們正在非常仔細地觀察並確保我們繼續做好工作以滿足客戶需求。

So lead times have not extended?

所以交貨期沒有延長？

We've seen lead times extend a little bit on some products, but we're working very carefully with our suppliers to keep lead times from extending and to make sure that we're meeting the demand for our customers.

我們已經看到某些產品的交貨時間有所延長，但我們正在與供應商非常謹慎地合作，以防止交貨時間延長，並確保我們滿足客戶的需求。

There are no further questions at this time. I will turn the call over to Lattice CEO, Jim Anderson, for closing comments.

目前沒有其他問題。我將把電話轉給萊迪思首席執行官吉姆安德森，以徵求結束意見。

Thank you, operator, and thanks, everyone, for joining us on the call today. I want to take the opportunity again to thank the Lattice team and our partners for all of their professionalism and dedication in the current environment. We really appreciate it. Despite some of the recent challenges, we continue to make very steady progress and remain focused on executing to our strategy. We appreciate your support and hope you and your families remain healthy.

謝謝接線員，也感謝大家今天加入我們的電話會議。我想藉此機會再次感謝 Lattice 團隊和我們的合作夥伴，感謝他們在當前環境下的專業精神和奉獻精神。我們真的很感激。儘管最近遇到了一些挑戰，但我們繼續取得非常穩步的進展，並繼續專注於執行我們的戰略。我們感謝您的支持，並希望您和您的家人保持健康。

Operator, that concludes today's call.

接線員，今天的電話會議到此結束。

And ladies gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。