微晶片科技 (MCHP) 2022 Q3 法說會逐字稿

Good day, everyone, and welcome to Microchip's Third Quarter Fiscal 2020 Financial Results. As a reminder, today's call is being recorded.

大家好，歡迎閱讀 Microchip 2020 財年第三季度財務業績。提醒一下，今天的電話正在錄音中。

At this time, I'd like to turn the call over to Microchip's Chief Financial Officer, Mr. Eric Bjornholt. Please go ahead, sir.

現在，我想將電話轉給 Microchip 的首席財務官 Eric Bjornholt 先生。請繼續，先生。

Thank you, and good afternoon, everyone. During the course of this conference call, we will be making projections and 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 and that actual events or results may differ materially. We refer you to our press releases of today as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operations.

謝謝大家，大家下午好。在本次電話會議期間，我們將對未來事件或公司未來財務業績做出預測和其他前瞻性陳述。我們希望提醒您，此類陳述是預測，實際事件或結果可能存在重大差異。我們向您推薦我們今天的新聞稿以及我們最近向 SEC 提交的文件，這些文件確定了可能影響 Microchip 業務和運營結果的重要風險因素。

In attendance with me today are Ganesh Moorthy, Microchip's President and CEO; Steve Sanghi, Microchip's Executive Chair; and Sajid Daudi, Microchip's Head of Investor Relations. I will comment on our third quarter fiscal year 2022 financial performance. Ganesh will then provide commentary on our results and discuss the current business environment as well as our guidance, and Steve will provide an update on our cash return strategy. We will then be available to respond to specific investor and analyst questions.

今天與我一同出席的有 Microchip 總裁兼首席執行官 Ganesh Moorthy； Microchip 執行主席 Steve Sanghi；以及 Microchip 投資者關係主管 Sajid Daudi。我將評論我們 2022 財年第三季度的財務業績。然後 Ganesh 將對我們的結果發表評論並討論當前的商業環境以及我們的指導，Steve 將提供我們現金回報策略的最新信息。然後，我們將可以回答特定的投資者和分析師的問題。

We are including information in our press release and this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page for our website at www.microchip.com, and included reconciliation information in our press release, which we believe you will find useful when comparing GAAP and non-GAAP results. We have also posted a summary of our outstanding debt and leverage metrics on our website.

我們將在我們的新聞稿和本次電話會議中包含有關各種 GAAP 和非 GAAP 措施的信息。我們已在我們網站 www.microchip.com 的投資者關係頁面上發布了完整的 GAAP 與非 GAAP 對賬，並在我們的新聞稿中包含了對賬信息，我們相信您在比較 GAAP 和非 GAAP 結果時會發現這些信息很有用.我們還在我們的網站上發布了未償債務和槓桿指標的摘要。

I will now go through some of the operating results, including net sales, gross margin and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis, which is based on expenses prior to the effects of our acquisition activities, share-based compensation and certain other adjustments as described in our press release.

我現在將介紹一些經營業績，包括淨銷售額、毛利率和經營費用。除淨銷售額外，我將在非公認會計原則的基礎上提及這些結果，這是基於我們的收購活動、基於股份的薪酬和我們新聞稿中描述的某些其他調整的影響之前的費用。

Net sales in the December quarter were $1.76 billion, which was up 6.5% sequentially and up 30% compared to the December quarter of fiscal 2021. We have posted a summary of our GAAP net sales by product line and geography, as well as our total end market demand on our website for your reference.

12 月季度的淨銷售額為 17.6 億美元，環比增長 6.5%，與 2021 財年 12 月季度相比增長 30%。我們發布了按產品線和地理劃分的 GAAP 淨銷售額摘要，以及我們的總銷售額我們網站上的終端市場需求供您參考。

On a non-GAAP basis, gross margins were a record at 66.1% and operating income was a record 44.6%. Non-GAAP net income was a record $681.7 million. Our non-GAAP cash tax rate was 6.7% in the December quarter. Non-GAAP earnings per diluted share was at the high end of our guidance and was a record $1.20.

按非公認會計原則計算，毛利率達到創紀錄的 66.1%，營業收入達到創紀錄的 44.6%。非美國通用會計準則淨收入達到創紀錄的 6.817 億美元。我們在 12 月季度的非 GAAP 現金稅率為 6.7%。非公認會計準則每股攤薄收益處於我們指導的高端，達到創紀錄的 1.20 美元。

On a GAAP basis in the December quarter, gross margins were a record at 65.6% and include the impact of $8.4 million of share-based compensation expense. Total operating expenses were $638.3 million and include acquisition intangible amortization of $215.7 million, special income of $0.3 million, $3.2 million of acquisition-related and other costs and share-based compensation of $42.5 million. GAAP net income was $352.8 million or $0.62 per diluted share and was negatively impacted by the GAAP loss on the convertible debt exchanges we executed in the quarter, which were not included in our guidance.

在 12 月季度的 GAAP 基礎上，毛利率達到創紀錄的 65.6%，其中包括 840 萬美元的股票薪酬費用的影響。總運營費用為 6.383 億美元，其中包括 2.157 億美元的收購無形攤銷、30 萬美元的特殊收入、320 萬美元的收購相關成本和其他成本以及 4250 萬美元的股權補償。 GAAP 淨收入為 3.528 億美元或每股攤薄收益 0.62 美元，受到我們在本季度執行的可轉換債務交易的 GAAP 損失的負面影響，這些損失未包含在我們的指導中。

Our December quarter GAAP tax expense was impacted by a variety of factors, most notably, the tax expense recorded from truing up estimated taxes to actual amounts based on tax returns filed during the quarter.

我們 12 月季度的 GAAP 稅費受到多種因素的影響，最顯著的是，根據本季度提交的納稅申報表將估計稅款與實際金額相匹配而記錄的稅費。

Our inventory balance at December 31, 2021 was $768.2 million. We had 116 days of inventory at the end of the quarter, which was up 4 days from the prior quarter's level. Our levels of raw materials and work in progress increased in the quarter, which helps position us for increased production we are expecting from our internal factories and helps buffer us against unexpected shortages or changes in material lead times.

我們在 2021 年 12 月 31 日的庫存餘額為 7.682 億美元。本季度末我們有 116 天的庫存，比上一季度的水平增加了 4 天。我們的原材料和在製品水平在本季度有所增加，這有助於我們提高我們對內部工廠的預期產量，並有助於緩沖我們對意外短缺或材料交貨時間變化的影響。

The days of inventory on our balance sheet go up with our gross margin improvement, with each 100 basis points of gross margin improvement translating into approximately 2 to 3 days of increased inventory on our balance sheet. The carrying cost of our inventory has been and will be increasing due to rising input costs from our supply chain. We are continuing to ramp capacity in our internal and external factories so we can ship as much product as possible to support customer requirements. Inventory at our distributors in the December quarter was at 19 days, which is a record low level and in line with where it was at the end of the prior quarter.

我們資產負債表上的庫存天數隨著我們毛利率的提高而增加，每 100 個基點的毛利率提高轉化為我們資產負債表上大約 2 到 3 天的庫存增加。由於我們供應鏈的投入成本上升，我們庫存的持有成本已經並將繼續增加。我們將繼續提高內部和外部工廠的產能，以便我們可以運送盡可能多的產品來滿足客戶的需求。 12 月季度我們分銷商的庫存為 19 天，創歷史新低，與上一季度末的水平一致。

During the December 2021 quarter, we achieved a milestone of becoming an investment-grade rated company. This is a goal we have been pursuing since we acquired Microsemi in May of 2018, and it positions us well for our capital return strategy that we detailed for investors at our Investor and Analyst Day back in November.

在 2021 年 12 月季度，我們實現了成為投資級評級公司的里程碑。這是我們自 2018 年 5 月收購 Microsemi 以來一直追求的目標，它為我們在 11 月的投資者和分析師日為投資者詳細介紹的資本回報戰略奠定了良好的基礎。

In the December quarter, we exchanged a total of $96.2 million of principal value of 2025, 2027 and 2037 convertible subordinated notes for cash and shares of our common stock. We used cash generation during the quarter to fund the principal amount of the convertible debt exchanges, and we believe that these transactions will benefit stockholders by significantly reducing share count dilution to the extent our stock price appreciates over time.

在 12 月季度，我們將本金價值總計 9620 萬美元的 2025、2027 和 2037 年可轉換次級票據換成現金和我們的普通股股份。我們在本季度使用現金產生來為可轉換債務交換的本金提供資金，我們相信這些交易將通過顯著減少股票數量稀釋來使股東受益，因為我們的股價會隨著時間的推移而升值。

The principal amount of convertible debt on our balance sheet at December 31 was $903 million compared to $4.481 billion at the beginning of calendar 2020, putting our overall capital structure in a much better long-term position.

截至 12 月 31 日，我們資產負債表上的可轉換債務本金為 9.03 億美元，而 2020 年初為 44.81 億美元，使我們的整體資本結構長期處於更好的狀態。

During the December quarter, we also refinanced our revolving line of credit to be in line with our investment-grade rating and decrease the size of that facility from $3.6 billion to $2.75 billion. Our cash flow from operating activities was a record $853.4 million in the December quarter. Our free cash flow was a record $762.7 million and 43.4% of net sales.

在 12 月季度，我們還對循環信貸額度進行了再融資，以符合我們的投資級評級，並將該貸款的規模從 36 億美元降至 27.5 億美元。我們的經營活動現金流在 12 月季度達到創紀錄的 8.534 億美元。我們的自由現金流達到創紀錄的 7.627 億美元，占淨銷售額的 43.4%。

As of December 31, our consolidated cash and total investment position was $315.5 million. We paid down $362.7 million of total debt in the December quarter. And over the last 14 full quarters since we closed the Microsemi acquisition and incurred over $8 billion in debt to do so, we have paid down almost $4.8 billion of the debt and continue to allocate substantially all of our excess cash beyond dividends and stock buyback to bring down this debt. We have accomplished this despite the adverse macro and market conditions during the earlier years of this period, which we feel is a testimony to the cash generation capabilities of our business as well as our ongoing operating discipline.

截至 12 月 31 日，我們的綜合現金和總投資頭寸為 3.155 億美元。我們在 12 月季度償還了 3.627 億美元的總債務。自我們完成對 Microsemi 的收購併為此承擔超過 80 億美元的債務以來的過去 14 個完整季度中，我們已經償還了近 48 億美元的債務，並繼續將除股息和股票回購之外的大部分多餘現金分配給降低這筆債務。儘管在此期間的前幾年宏觀和市場條件不利，我們還是實現了這一目標，我們認為這證明了我們業務的現金產生能力以及我們持續的經營紀律。

We continue to expect our debt levels to reduce significantly over the next several years. Our adjusted EBITDA in the December quarter was a record $869.4 million and 49.5% of net sales. Our trailing 12-month adjusted EBITDA was also a record at $3 billion and 46.5% of net sales. Our net debt to adjusted EBITDA was 2.58 at December 31, 2021, down from 2.99 at September 30, 2021. Our dividend payment in the September quarter was $128.7 million, and we repurchased $166 million of stock during the quarter.

我們繼續預計我們的債務水平將在未來幾年內大幅下降。我們在 12 月季度調整後的 EBITDA 為創紀錄的 8.694 億美元，占淨銷售額的 49.5%。我們過去 12 個月調整後的 EBITDA 也達到創紀錄的 30 億美元，占淨銷售額的 46.5%。截至 2021 年 12 月 31 日，我們與調整後 EBITDA 的淨債務為 2.58，低於 2021 年 9 月 30 日的 2.99。我們在 9 月季度支付的股息為 1.287 億美元，我們在本季度回購了 1.66 億美元的股票。

Capital expenditures were $90.7 million in the December quarter. Our expectation for the March 2022 quarter's capital expenditures is between $135 million and $145 million. Our capital expenditures for fiscal 2022 are expected to be between $390 million and $400 million.

12 月季度的資本支出為 9070 萬美元。我們對 2022 年 3 月季度的資本支出的預期在 1.35 億美元至 1.45 億美元之間。我們 2022 財年的資本支出預計在 3.9 億美元至 4 億美元之間。

As a reminder, our fiscal year 2021 capital expenditures came in lower than originally planned due to longer equipment lead times and deliveries pushing out as a result of overall industry conditions. We continue to prudently add capital equipment to maintain, grow and operate our internal manufacturing operations to support the expected long-term growth of the business. We expect these capital investments will bring gross margin improvement to our business and give us increased control over our production during periods of industry-wide constraints. Depreciation expense in the December quarter was $64.9 million.

提醒一下，我們 2021 財年的資本支出低於原計劃，因為整體行業狀況導致設備交貨時間延長和交付推遲。我們繼續謹慎地增加資本設備，以維持、發展和運營我們的內部製造業務，以支持業務的預期長期增長。我們預計這些資本投資將為我們的業務帶來毛利率的提高，並讓我們在全行業受限期間加強對生產的控制。 12 月季度的折舊費用為 6490 萬美元。

I will now turn it over to Ganesh to give his comments on the quarter on the performance of the business as well as our guidance for the March quarter. Ganesh?

我現在將把它交給 Ganesh，就本季度的業務表現以及我們對 3 月季度的指導發表評論。加內甚？

Great. Thank you, Eric, and good afternoon, everyone. Our December quarter results continued the strength of strong growth quarters, with revenue growing 6.5% sequentially to achieve another all-time record at $1.76 billion, breaking through the $7 billion annualized revenue milestone.

偉大的。謝謝你，埃里克，大家下午好。我們 12 月的季度業績延續了強勁增長季度的強勁勢頭，收入環比增長 6.5%，創下 17.6 億美元的歷史新高，突破了 70 億美元的年化收入里程碑。

On a year-over-year basis, our December quarter revenue was up 30%, registering the fifth consecutive quarter of rising year-over-year revenue growth rate. Non-GAAP gross margin was another record of 66.1%, up 80 basis points from 65.3% in the September quarter and above the midpoint of our guidance as we continue to ramp our internal factories and benefit from improved fixed cost absorption as well as product mix changes.

與去年同期相比，我們 12 月季度的收入增長了 30%，連續第五個季度實現收入同比增長。非美國通用會計準則毛利率再創紀錄，為 66.1%，比 9 月季度的 65.3% 上升 80 個基點，高於我們指引的中點，因為我們繼續擴大內部工廠規模，並受益於固定成本吸收和產品組合的改善變化。

Non-GAAP operating margin was also a record at 44.6%, up 210 basis points from 42.5% in the September quarter and well above the high end of our guidance. The large increase in operating margin percentage was helped by the rapid growth in revenue, and the additional time it is taking to hire new employees, thus delaying expected operating expenses. At 21.5% operating expenses, we're 100 basis points below the low end of our long-term model of 22.5% to 23.5% in operating expenses. Our long-term business model will continue to guide our actions to enable the long-term growth and profitability of our business.

非美國通用會計準則營業利潤率也達到創紀錄的 44.6%，比 9 月當季的 42.5% 上升 210 個基點，遠高於我們指引的高端。營業利潤率的大幅增長得益於收入的快速增長，以及僱用新員工所需的額外時間，從而推遲了預期的運營費用。以 21.5% 的運營費用計算，我們的運營費用比我們長期模型 22.5% 至 23.5% 的低端低 100 個基點。我們的長期業務模式將繼續指導我們的行動，以實現我們業務的長期增長和盈利能力。

Our consolidated non-GAAP diluted EPS was a record $1.20 per share at the high end of our guidance and up 49% from the year ago quarter. Adjusted EBITDA at 49.5% of revenue and free cash flow at 43.4% of revenue were both very strong, continuing to demonstrate the robust cash generation capabilities of our business. This, in turn, enabled us to pay down another $362.7 million in debt. It's brought down our net debt by $422.1 million, driving our net leverage ratio down to 2.58% in the December quarter. This reduction in net debt and net leverage ratio was achieved despite our also buying back $166 million of our shares under our $4 billion stock buyback program, which we initiated soon after we achieved investment-grade rating for our debt in November.

在我們指導的高端，我們的合併非公認會計原則攤薄後每股收益達到創紀錄的每股 1.20 美元，比去年同期增長 49%。佔收入 49.5% 的調整後 EBITDA 和占收入 43.4% 的自由現金流都非常強勁，繼續展示了我們業務強勁的現金生成能力。這反過來又使我們能夠償還另外 3.627 億美元的債務。它使我們的淨債務減少了 4.221 億美元，使我們的淨槓桿率在 12 月季度降至 2.58%。儘管我們還根據 40 億美元的股票回購計劃回購了 1.66 億美元的股票，但淨債務和淨槓桿率的降低還是實現了，該計劃是我們在 11 月獲得債務投資級評級後不久啟動的。

The December quarter marked our 125th consecutive quarter of non-GAAP profitability. And I would like to thank all our stakeholders who enabled us to achieve these outstanding and record results, and especially thank the worldwide Microchip team whose tireless efforts are what made these results possible.

12 月季度是我們連續第 125 個季度實現非公認會計準則盈利。我要感謝我們所有的利益相關者，他們使我們能夠取得這些傑出和創紀錄的成果，特別感謝全球 Microchip 團隊的不懈努力使這些成果成為可能。

Taking a look at our revenue from a product line perspective. Our microcontroller revenue was sequentially up a strong 8.7% as compared to the September quarter and was an all-time record. On an annualized basis, our December quarter microcontroller revenue at $3.9 billion is closing in on $4 billion.

從產品線的角度來看我們的收入。與 9 月季度相比，我們的微控制器收入連續增長 8.7%，創下歷史新高。按年計算，我們 12 月季度的微控制器收入為 39 億美元，接近 40 億美元。

On a year-over-year basis, our December quarter microcontroller revenue was up 33.9%. All microcontroller product lines, 8-bit, 16-bit and 32-bit, had over 30% year-over-year revenue growth in the December quarter, with 32-bit microcontrollers having the highest year-over-year growth. 8-bit microcontrollers and 32-bit microcontrollers, both of which are about the same size in revenue, each also achieved record revenue milestones. Microcontrollers represented 55.3% of our revenue in the December quarter.

與去年同期相比，我們 12 月季度的微控制器收入增長了 33.9%。 8 位、16 位和 32 位的所有微控制器產品線在 12 月季度的收入同比增長超過 30%，其中 32 位微控制器的同比增長最高。 8 位微控制器和 32 位微控制器的收入規模大致相同，均創下了創紀錄的收入里程碑。微控制器占我們 12 月季度收入的 55.3%。

Coming off strong sequential growth in the September quarter, our analog revenue increased 1.9% in the December quarter, setting another record in the process. On an annualized basis, our December quarter analog revenue broke through the $2 billion mark for the first time.

在 9 月季度強勁的連續增長之後，我們的模擬收入在 12 月季度增長了 1.9%，在此過程中再創紀錄。按年計算，我們 12 月季度的模擬收入首次突破 20 億美元大關。

On a year-over-year basis, our December quarter analog revenue was up 34.3%, almost the same year-over-year growth rate as our microcontroller revenue. Analog represented 28.5% of our revenue in the December quarter.

與去年同期相比，我們 12 月季度的模擬收入增長了 34.3%，與我們的微控制器收入的同比增長率幾乎相同。模擬在 12 月季度占我們收入的 28.5%。

While we no longer break out our FPGA or licensing revenue, they both remain a key focus for Microchip's long-term growth. In the December quarter, our FPGA revenue hit an all-time record by a wide margin, and our licensing royalty revenue also hit an all-time record.

雖然我們不再細分我們的 FPGA 或許可收入，但它們仍然是 Microchip 長期增長的重點。在 12 月季度，我們的 FPGA 收入大幅創歷史新高，我們的許可使用費收入也創歷史新高。

Taking a look at our revenue from a geographic and end market perspective. Americas was up 4.6% sequentially, Europe was up 11% sequentially, which is significantly better than typical seasonal performance for the December quarter, Asia was up 5.8% sequentially and all end markets were strong and supply-constrained.

從地理和終端市場的角度來看我們的收入。美洲環比增長 4.6%，歐洲環比增長 11%，明顯好於 12 月季度的典型季節性表現，亞洲環比增長 5.8%，所有終端市場都表現強勁且供應受限。

Business conditions continue to be exceptionally strong through the quarter. Our preferred supply program, or PSP backlog, continues to grow and is well over 50% of our aggregate backlog and 100% of our backlog in the most constrained capacity product areas. Demand far outpaced the capacity improvements and increased shipments we achieved in the quarter. As a result, our unsupported backlog, which represents backlog customers wanted shipped to them in the December quarter but which we could not deliver in the December quarter, continued to climb significantly as compared to the unsupported backlog exiting the September quarter.

整個季度的商業狀況繼續異常強勁。我們的首選供應計劃（或 PSP 積壓）繼續增長，遠遠超過我們總積壓的 50% 和我們在容量最受限的產品領域的積壓的 100%。需求遠遠超過了我們在本季度實現的產能改善和出貨量增加。因此，與退出 9 月季度的不受支持的積壓相比，我們不受支持的積壓訂單（代表客戶希望在 12 月季度發貨但我們無法在 12 月季度交付的積壓訂單）繼續顯著攀升。

To illustrate the magnitude of the demand/supply imbalance. Despite our December quarter revenue having grown 30% as compared to the year ago quarter, we exited the December quarter with the highest unsupported backlog ever. We continue to experience constraints in all our internal and external factories and their related manufacturing supply chains. We are also experiencing some adverse impact from the rapid rise in the Omicron variant cases of the COVID-19 virus. We continue to ramp our internal factories as fast as possible, and we are working closely with our supply chain partners who provide wafer foundry, assembly, test and materials to secure additional capacity wherever possible.

說明供需失衡的嚴重程度。儘管我們 12 月季度的收入與去年同期相比增長了 30%，但我們在 12 月季度以有史以來最高的未支持積壓退出。我們所有的內部和外部工廠及其相關的製造供應鏈都繼續受到限制。我們還因 COVID-19 病毒的 Omicron 變異病例迅速增加而受到一些不利影響。我們將繼續盡快擴大我們的內部工廠，並與我們的供應鏈合作夥伴密切合作，他們提供晶圓代工、組裝、測試和材料，以盡可能確保額外的產能。

Looking at the magnitude of the demand/supply imbalance, the size of our noncancelable backlog and the rate at which we're able to bring on new capacity, we continue to expect that we will remain supply-constrained throughout 2022 and possibly beyond that. We believe our backlog position, especially the proportion of PSP backlog, is giving us a solid foundation to prudently acquire constrained raw materials, invest in expanding factory capacity and hire employees to support our factory ramps.

考慮到供需失衡的程度、我們不可取消的積壓的規模以及我們能夠帶來新產能的速度，我們繼續預計我們將在整個 2022 年甚至更長時間內保持供應受限。我們相信我們的積壓狀況，尤其是 PSP 積壓的比例，為我們提供了一個堅實的基礎，可以謹慎地採購受限原材料、投資擴大工廠產能並僱傭員工來支持我們的工廠生產。

Our planned capital spending continues to rise in response to growth opportunities in our business as well as to fill gaps in the level of capacity investments being made by our outsourced manufacturing partners in technologies they consider to be trailing edge, but which we believe will be workhorse technologies for us for many years to come.

我們計劃的資本支出繼續增加，以響應我們業務的增長機會，並填補我們的外包製造合作夥伴在他們認為落後但我們認為將是主力的技術方面的產能投資水平差距未來許多年的技術。

In the December quarter, we signed a definitive agreement to purchase an assembly test factory shell in the Philippines near where we already operate our manufacturing facilities. As we facilitize and build out this shell with equipment, we will be able to grow our internal back-end capacity for many years to come.

在 12 月季度，我們簽署了一項最終協議，在菲律賓附近我們已經運營我們的製造設施的地方購買組裝測試工廠外殼。隨著我們用設備促進和建造這個外殼，我們將能夠在未來很多年裡增加我們的內部後端能力。

We believe our increase in capital spending will enable us to capitalize on growth opportunities, improve our gross margins, increase our market share and give us more control over our destiny, especially for trailing-edge technologies. We will, of course, continue to utilize the capacity available from our outsourced partners. But our goal is to be less constrained by their investment priorities in areas where they don't align with our business needs.

我們相信，我們增加資本支出將使我們能夠利用增長機會，提高我們的毛利率，增加我們的市場份額，並讓我們更好地控制我們的命運，特別是在前沿技術方面。當然，我們將繼續利用外包合作夥伴提供的能力。但我們的目標是減少他們在不符合我們業務需求的領域的投資優先事項的限制。

Now let's get into the guidance for the March quarter. Our backlog for the March quarter is very strong, and we have more capacity improvements coming into effect. However, our supply in the March quarter is expected to be adversely impacted by the COVID-19 Omicron variant, which has increased the level of factory workforce absentees. We also have challenges in staffing in several of our factories at the rate we would like to. Taking all these factors we have discussed on the call today into consideration, we expect our net sales for the March quarter to be up between 2% and 5% sequentially. Our guidance range assumes some capacity additions, as well as continued capacity constraints, some of which we expect to work during the quarter and others that we will carry over to future quarters.

現在讓我們進入 3 月季度的指導。我們在 3 月季度的積壓非常多，而且我們有更多的產能改進正在生效。但是，我們在 3 月季度的供應預計將受到 COVID-19 Omicron 變體的不利影響，這增加了工廠勞動力的缺勤率。我們在幾家工廠的人員配備方面也面臨我們想要的挑戰。考慮到我們今天在電話會議上討論的所有這些因素，我們預計 3 月季度的淨銷售額將環比增長 2% 至 5%。我們的指導範圍假設一些產能增加，以及持續的產能限制，其中一些我們預計將在本季度發揮作用，而其他一些我們將延續到未來幾個季度。

At the midpoint of our revenue guidance, our year-over-year growth for the March quarter would be a strong 24%. For the March quarter, we expect our non-GAAP gross margin to be between 66.2% and 66.6% of sales. We expect non-GAAP operating expenses to be between 21.8% and 22.2%, and we expect non-GAAP operating profit to be between 44% and 48% of sales. We expect our non-GAAP diluted earnings per share to be between $1.22 per share and $1.28 per share.

在我們收入指導的中點，我們 3 月季度的同比增長將達到 24%。對於 3 月季度，我們預計我們的非 GAAP 毛利率將在銷售額的 66.2% 至 66.6% 之間。我們預計非 GAAP 營業費用將在 21.8% 至 22.2% 之間，我們預計非 GAAP 營業利潤將在銷售額的 44% 至 48% 之間。我們預計我們的非公認會計原則攤薄後每股收益將在每股 1.22 美元至 1.28 美元之間。

Given all the complications of accounting for our acquisitions, including amortization of intangibles, restructuring charges and inventory write-up on acquisitions, Microchip will continue to provide guidance and track its results on a non-GAAP basis except for net sales, which will be on a GAAP basis. We believe that non-GAAP results provide more meaningful comparison to prior quarters, and we request that analysts continue to report their non-GAAP estimates to first call.

鑑於我們收購會計的所有復雜性，包括無形資產的攤銷、重組費用和收購的庫存增記，Microchip 將繼續提供指導並在非公認會計原則的基礎上跟踪其結果，淨銷售額除外，這將在以公認會計原則為基礎。我們認為，非 GAAP 業績與前幾個季度相比提供了更有意義的比較，我們要求分析師繼續在首次電話會議上報告他們的非 GAAP 估計。

Finally, at our Investor Day on November 8 last year, we unveiled our Microchip 3.0 strategy, which builds on our Microchip 2.0 strategy that we successfully executed over the last decade, employing serial acquisitions to give us a solid foundation to build scale and breadth of solutions while significantly improving our gross and operating margin model.

最後，在去年 11 月 8 日的投資者日上，我們公佈了 Microchip 3.0 戰略，該戰略建立在我們過去十年成功執行的 Microchip 2.0 戰略的基礎上，通過連續收購為我們建立規模和廣度提供了堅實的基礎。解決方案，同時顯著改善我們的毛利率和營業利潤率模型。

To summarize, the essential elements of Microchip 3.0 we announced were: an organic growth target of 2x the industry growth by focusing on total system solutions and the 6 key market megatrends; long-term non-GAAP operating margin target of 44% to 46% and free cash flow target of 38%; increased capital return to shareholders to 50% of free cash flow and further increase this every quarter to return 100% of free cash flow to shareholders as net leverage drops to 1.5x; increase our CapEx investment to 3% to 6% of revenue and invest in 130 to 150 days of inventory over the business cycles; and finally, to maintain a strong company foundation built on culture and sustainability.

總而言之，我們宣布的 Microchip 3.0 的基本要素是：通過專注於整體系統解決方案和 6 個主要市場大趨勢，實現 2 倍行業增長的有機增長目標；長期非公認會計原則營業利潤率目標為 44% 至 46%，自由現金流目標為 38%；將向股東的資本回報增加到自由現金流的 50%，並在每季度進一步增加，以在淨槓桿率降至 1.5 倍時向股東返還 100% 的自由現金流；將我們的資本支出投資增加到收入的 3% 到 6%，並在整個業務週期內投資 130 到 150 天的庫存；最後，保持建立在文化和可持續性基礎上的強大公司基礎。

As you can see from our December quarter results and the March quarter guidance, we are laser-focused on executing our Microchip 3.0 strategy.

正如您從 12 月季度業績和 3 月季度指導中所看到的那樣，我們專注於執行我們的 Microchip 3.0 戰略。

Let me now pass the baton to Steve to talk more about our capital return to shareholders. Steve?

現在讓我把接力棒交給史蒂夫，更多地談談我們對股東的資本回報。史蒂夫?

Thank you, Ganesh, and good afternoon, everyone. Today, I would like to reflect on our financial results announced today and provide you further updates on our capital return strategy.

謝謝 Ganesh，大家下午好。今天，我想回顧一下我們今天公佈的財務業績，並為您提供有關我們資本回報策略的進一步更新。

Reflecting on our financial results, I continue to be very proud of all employees of Microchip that have delivered another exceptional quarter in making new records in many respects, namely record net sales, record non-GAAP gross margin percentage, record non-GAAP operating margin percentage, record non-GAAP EPS, record cash flow from operations and record adjusted EBITDA.

回顧我們的財務業績，我仍然為 Microchip 的所有員工感到非常自豪，他們在許多方面創造了新的記錄，即創紀錄的淨銷售額、創紀錄的非 GAAP 毛利率、創紀錄的非 GAAP 營業利潤率百分比、創紀錄的非公認會計原則每股收益、創紀錄的經營現金流和創紀錄的調整後 EBITDA。

The Board of Directors announced an increase in the dividend of 9.1% from last quarter to $0.253 per share. This is an increase of 29.7% from a year ago quarter.

董事會宣布將股息從上一季度增加 9.1% 至每股 0.253 美元。這比去年同期增長了 29.7%。

Last quarter, we received an investment-grade rating from both Moody's and Fitch. After receiving such rating, we initiated our enhanced capital return strategy that we described at our Investor and Analyst Day on November 8, 2021.

上個季度，我們獲得了穆迪和惠譽的投資級評級。在獲得此類評級後，我們啟動了我們在 2021 年 11 月 8 日的投資者和分析師日描述的增強資本回報策略。

During the last quarter, we purchased $166 million of our stock in the open market. We also paid out $129 million in dividends. Thus, the total cash return totaled $295 million. This was 50.1% of our free cash flow projection at the start of the quarter of $589 million, consistent with us targeting 50% of free cash flow as a return to our investors. However, our cash collections in the final month of the quarter were exceptional due to a very strong and linear shipping quarter and record non-GAAP gross and operating margins and record adjusted EBITDA being well above our forecast.

在上一季度，我們在公開市場上購買了 1.66 億美元的股票。我們還支付了 1.29 億美元的股息。因此，總現金回報總額為 2.95 億美元。這是我們在本季度初的 5.89 億美元自由現金流預測中的 50.1%，與我們將 50% 的自由現金流作為對投資者的回報的目標一致。然而，由於非常強勁和線性的航運季度以及創紀錄的非公認會計原則毛利率和營業利潤率以及創紀錄的調整後 EBITDA 遠高於我們的預測，我們在本季度最後一個月的現金收款非常出色。

Our actual free cash flow last quarter was $763 million, which was $174 million higher than our projection. Towards the end of the quarter, the stock buyback window had already closed. So we use the extra free cash flow towards further paying down the debt. This extra paydown of debt as well as record adjusted EBITDA drove down our December net leverage to 2.58 from 2.99 at the end of September.

我們上個季度的實際自由現金流為 7.63 億美元，比我們的預測高出 1.74 億美元。到本季度末，股票回購窗口已經關閉。因此，我們使用額外的自由現金流來進一步償還債務。這種額外的債務償還以及創紀錄的調整後 EBITDA 將我們 12 月的淨槓桿率從 9 月底的 2.99 降至 2.58。

Our strategy for cash return to the shareholders was to execute it based on forecast and then true up in the following quarter. Because of the unpredictability of the free cash flow, we are simplifying the process. Going forward, we will use the actual free cash flow for the prior quarter and return our target percentage of that free cash flow to shareholders in the current quarter. So based on this revised process, we will use our last quarter's actual free cash flow of $763 million. This quarter, we plan to return 52.5% of this $763 million, which is $400 million to the shareholders. Out of this $400 million, the dividend is expected to be approximately $141 million and the stock buyback is expected to be approximately $259 million.

我們為股東提供現金回報的策略是根據預測執行，然後在下一季度實現。由於自由現金流的不可預測性，我們正在簡化流程。展望未來，我們將使用上一季度的實際自由現金流，並在本季度將自由現金流的目標百分比返還給股東。因此，根據這個修改後的流程，我們將使用上一季度的實際自由現金流 7.63 億美元。本季度，我們計劃將這 7.63 億美元中的 52.5% 返還給股東，也就是 4 億美元。在這 4 億美元中，股息預計約為 1.41 億美元，股票回購預計約為 2.59 億美元。

I will also like to note that on January 13, 2022, Moody's further raised Microchip's unsecured debt credit rating from prior BAA3+ to the current BAA2+. As you know, Moody's BAA2 rating is equivalent to BBB on the rating scale of S&P and Fitch.

我還要指出，2022 年 1 月 13 日，穆迪進一步將 Microchip 的無擔保債務信用評級從之前的 BAA3+ 提高到了當前的 BAA2+。如您所知，穆迪的 BAA2 評級在標準普爾和惠譽的評級等級上相當於 BBB。

With that, operator, will you please poll for questions?

有了這個，接線員，請您投票提問嗎？

(Operator Instructions) We'll take our first question from John Pitzer with Credit Suisse.

（操作員說明）我們將回答瑞士信貸的 John Pitzer 提出的第一個問題。

Just relative to the supply issues that you're seeing in the March quarter, any way to quantify that? And as you think about the balance of the year, do you have enough visibility of backlog and scheduled supply growth to make the argument that you should be able to grow sequentially every quarter in the calendar year '22?

就您在 3 月季度看到的供應問題而言，有什麼方法可以量化嗎？當您考慮今年的餘額時，您是否對積壓和預定供應增長有足夠的可見性，以提出您應該能夠在 22 日曆年的每個季度按順序增長的論點？

So the supply issues in the March quarter are comprehended in our guidance. And so there's nothing more to say other than we are working through it. There are just natural issues that come with COVID and some of the disruptions that happened with it.

因此，我們的指導包含了 3 月季度的供應問題。因此，除了我們正在解決它之外，沒有什麼可說的了。 COVID帶來的只是自然問題以及隨之而來的一些破壞。

Our backlog position, as I mentioned, is extremely strong. We have much of 2022 backlog already on the books. And really, it's bringing supply on that we expect will continue to drive the growth. There's no shortage of demand that we're working on. And every quarter, we continue to leave more of the backlog that is unsupported has happened 5 quarters in a row.

正如我所提到的，我們的積壓職位非常強大。我們已經有很多 2022 年的積壓工作。實際上，它帶來了供應，我們預計將繼續推動增長。我們正在努力解決的需求並不短缺。每個季度，我們都會繼續留下更多不受支持的積壓訂單，這些訂單已經連續 5 個季度發生。

So if you look at the size of the imbalance, the size of the noncancelable backlog, the rate at which we're bringing on new capacity, we expect we're going to be constrained throughout 2022.

因此，如果您查看不平衡的規模、不可取消的積壓訂單的規模以及我們引入新產能的速度，我們預計我們將在 2022 年受到限制。

We'll take our next question from Pradeep Ramani with UBS.

我們將向瑞銀的 Pradeep Ramani 提出下一個問題。

I just wanted to sort of follow-up on the prior question. In the past, you talked about visibility being solid for 4 quarters of sequential growth. How do we interpret your comments that you just made in terms of whether you have that visibility now, both in terms of demand and supply?

我只是想對前面的問題進行一些跟進。過去，您曾談到連續 4 個季度增長的可見性是穩定的。我們如何解釋您剛剛發表的關於您現在在需求和供應方面是否具有這種知名度的評論？

We have visibility in terms of demand that exceeds 4 quarters. We have supply coming on every single quarter. We're trying to guide you a quarter at a time. But at this point, there is no demand signal that has any concern for us. The PSP backlog makes it all noncancelable. It's a very high percentage of our backlog. Some of the PSP backlog is going well beyond 12 months at this point in time. So it's really a supply-driven equation for at least all of 2022 and likely into 2023.

我們的需求可見度超過 4 個季度。我們每個季度都有供應。我們試圖一次指導你四分之一。但在這一點上，沒有對我們有任何擔憂的需求信號。 PSP 積壓使得這一切都無法取消。這是我們積壓的一個非常高的百分比。目前，一些 PSP 的積壓工作遠遠超過 12 個月。因此，至少在 2022 年全年，甚至可能到 2023 年，這實際上都是一個供應驅動的方程式。

We'll take our next question from Gary Mobley with Wells Fargo Securities.

我們將向富國銀行證券公司的 Gary Mobley 提出下一個問題。

(technical Difficulties]

（技術難點]

As your unsupported backlog continues to grow each and every quarter, I'm presuming that you're having to make tough decisions with respect to supporting perhaps or not supporting some lower-margin products in the strategy for maximizing the mix and whatnot. Longer term, does that deferred product shipment go into backlog? Is it temporarily or permanently lost? What sort of -- what are the sort of the long-term considerations in terms of mix contribution from the supply constrained environment that we're in?

隨著您不受支持的積壓訂單每個季度都在持續增長，我假設您必須做出艱難的決定，以支持或不支持一些利潤率較低的產品，以最大限度地提高組合等等。從長遠來看，延遲的產品發貨是否會積壓？是暫時丟失還是永久丟失？什麼樣的——就我們所處的供應受限環境的混合貢獻而言，長期考慮是什麼？

Well, a constrained environment clearly gives us an opportunity to richen the mix and use the capacity we have. But you can't just be short-term oriented in that. You have to look at who the customers are, what markets they're in, what the long-term prospects are that go with them.

嗯，一個受限制的環境顯然給了我們一個機會來豐富組合和利用我們擁有的能力。但你不能只以短期為導向。你必須看看客戶是誰，他們在什麼市場，他們的長期前景是什麼。

As demand goes unfulfilled in any quarter, it remains, for the most part, noncancelable backlog. Anything in 90 days with or without PSP is already noncancelable. And what we do is we just squeeze out some into the following quarters, some into the quarter after that. Capacity is coming on, and we're able to respond to some of it with that. And they could be on the fringes, some of the demand that eventually does not materialize. But the vast majority of the backlog stays as noncancelable backlog but serviced at a later point in time.

由於任何季度的需求都沒有得到滿足，它在很大程度上仍然是不可取消的積壓。 90 天內有或沒有 PSP 的任何事情都已經不可取消。我們所做的只是將一些擠出到接下來的季度，一些擠出到之後的季度。容量正在增加，我們能夠對此做出回應。他們可能處於邊緣，一些最終沒有實現的需求。但絕大多數積壓工作仍是不可取消的積壓工作，但會在稍後的時間點得到服務。

And the biggest decision maker now in terms of what we're shipping is based on the PSP backlog that we've had in place and how long it's been in place.

現在就我們要交付的產品而言，最大的決策者是基於我們已經到位的 PSP 積壓以及它已經到位的時間。

Yes. I think your question was more like are we not shipping a low-margin backlog, and when we eventually ship is that a negative to gross margin. I think operations don't know what the gross margin is. They look at units and backlog in dollars and they ship and allocate. So there's a much lower level of emphasis to not ship the low-margin backlog. It's much more to do with who the customer is, what the market segment is, who the strategic accounts are, we're shipping the PSP backlog and constraining the non-PSP backlog. So I think your concern is really not well placed there.

是的。我認為您的問題更像是我們是否沒有運送低利潤的積壓訂單，而當我們最終運送時，這對毛利率是不利的。我認為運營不知道毛利率是多少。他們查看單位和積壓的美元，然後發貨和分配。因此，不交付低利潤積壓的重點要低得多。這更多地與客戶是誰、細分市場是什麼、戰略客戶是誰有關，我們正在運送 PSP 積壓並限制非 PSP 積壓。所以我認為你的關注點確實不太合適。

We'll hear next from Toshiya Hari with Goldman Sachs.

接下來我們將聽到 Toshiya Hari 與高盛的合作。

I wanted to get your thoughts on industry supply/demand. Clearly, as of today, and as you guys say, for the rest of the year, things most likely stay very tight. At the same time, you're seeing pretty significant increases in CapEx from most players, including yourselves, your peers with capacity coming online late '22 and definitely into '23. Is it way too early to be concerned about supply/demand going into '23? Or how do you think about that internally? And what would you need to see for you to kind of pump the brakes on CapEx decisions?

我想了解您對行業供需的看法。顯然，截至今天，正如你們所說，在今年餘下的時間裡，情況很可能會非常緊張。同時，您會看到大多數參與者的資本支出顯著增加，包括您自己，您的同行在 22 年末上線，肯定會在 23 年上線。現在擔心進入 23 年的供需是否為時過早？或者你在內部是怎麼想的？你需要看到什麼來阻止資本支出決策？

After 5 quarters and now into the sixth quarter, there's really no line of sight to having demand/supply coming back into some form of equilibrium. So we continue to -- the gap between demand and supply, despite adding supply, continues to grow. We know that's not a permanent factor, but it is at this point in time.

在 5 個季度之後，現在進入第六季度，需求/供應恢復到某種形式的平衡真的看不到。因此，儘管供應增加，但需求和供應之間的差距繼續擴大。我們知道這不是一個永久性的因素，但它是在這個時間點。

Demand continues to be strong. Every customer I speak to, every CEO that expresses their needs continues to see strength in their business. It's, in fact, many, many of them wanting to go into something more of noncancelable nature into '23, in many cases, into '24 as they see their business. So there are many, many factors driving semiconductor growth beyond the short-term supply/demand. There are secular factors that we've talked about with the megatrends, with how digitization is taking place. At some point, it will have a supply/demand balance that does occur. We don't see it in '22. We don't see it in our numbers that we see for '23 at this point.

需求繼續強勁。我與之交談的每一位客戶，每一位表達他們需求的 CEO 都會繼續在他們的業務中看到實力。事實上，他們中的許多人都希望在 23 年，在許多情況下，進入 24 年，因為他們看到了他們的業務。因此，除了短期供需之外，還有很多很多因素推動半導體增長。在大趨勢中，我們談到了一些長期因素，以及數字化是如何發生的。在某個時候，它會出現供需平衡。我們在 22 年看不到它。我們在我們現在看到的 23 年的數字中看不到它。

We'll take our next question from Vivek Arya with Bank of America Securities.

我們將向美國銀行證券公司的 Vivek Arya 提出下一個問題。

So Ganesh, I wanted to ask the supply/demand question in a different way. Can you increase supply every quarter for the next 3 or 4 quarters, obviously, barring any macro issues? Because if you can increase supply and demand, it's not an issue. Then growing sales every quarter should be doable, right? Or what part of that equation, right, am I missing?

所以 Ganesh，我想以不同的方式提出供需問題。很明顯，除非出現任何宏觀問題，否則您能否在接下來的 3 或 4 個季度每個季度增加供應？因為如果你能增加供需，這不是問題。那麼每個季度的銷售額增長應該是可行的，對吧？或者那個等式的哪一部分，對，我錯過了？

We are absolutely increasing capacity every single quarter. You're not missing any part of that equation.

我們每個季度都在絕對增加產能。你不會錯過這個等式的任何部分。

Got it. So that's what I wanted to confirm because I thought there was some confusion that -- are you still sticking with the potential for improving revenue every quarter, all else being equal?

知道了。所以這就是我想確認的，因為我認為存在一些困惑——你是否仍然堅持每個季度提高收入的潛力，其他條件都一樣？

We're driving in that direction. We've got plenty of demand. So demand side is not the issue, capacity is. We are building capacity that will continue to grow throughout 2022 and into 2023. We're trying to provide you more general direction of where are we going without trying to make this every quarter what are we trying to do. Clearly, the guidance we're providing specifically is for this quarter. But the demand/supply equation, driven by the demand we have, the supply we are bringing on, continues to have many quarters of legs.

我們正朝著那個方向前進。我們有很多需求。所以需求端不是問題，產能才是。我們正在建設的能力將在整個 2022 年和 2023 年繼續增長。我們正在努力為您提供更多關於我們前進方向的總體方向，而不是試圖讓每個季度都像我們想要做的那樣。顯然，我們專門提供的指導是針對本季度的。但是，由我們擁有的需求和我們帶來的供應驅動的需求/供應方程繼續存在許多季度。

We'll take our next question from Harlan Sur with JPMorgan.

我們將向摩根大通的 Harlan Sur 提出下一個問題。

Congratulations on the solid results and execution. Over the past earnings season, all 3 of the large U.S.-based semi equipment suppliers have been coming up a bit short on shipments to their customers because they're being constrained by component availability, logistics and labor issues, and well, and they all expect to slightly under-shift their customers' manufacturing requirements, at least through the first half of this year. So I'm wondering if this is maybe slowing your ability to improve your internal front-end wafer capacity or even capacity plans by your outsourced wafer fab partners maybe just a little bit versus what you expected, maybe 60, 90 days ago?

祝賀取得了紮實的成果和執行。在過去的財報季中，所有 3 家美國大型半導體設備供應商都在向客戶發貨時出現了一些短缺，因為他們受到組件可用性、物流和勞動力問題的限制，而且他們都預計至少在今年上半年之前，他們的客戶的製造要求會略有下降。因此，我想知道這是否會減緩您提高內部前端晶圓產能的能力，甚至是您的外包晶圓廠合作夥伴的產能計劃，可能只是與您在 60、90 天前的預期相比有所下降？

So it is true that equipment, in general, and we've been saying this on prior calls as well, lead times have been stretching. Some part of that is just the equipment manufacturers' imbalance between supply and demand. Some of it is semiconductor shortages that feed into the equipment that is built for semiconductor manufacturers. So yes, our lead times for receiving equipment have continued to stretch.

因此，總的來說，設備確實如此，我們在之前的電話中也一直在說，交貨時間一直在延長。部分原因只是設備製造商的供需失衡。其中一些是為半導體製造商製造的設備中的半導體短缺。所以，是的，我們接收設備的交貨時間繼續延長。

We'll take our next question from Harsh Kumar with Piper Sandler.

我們將帶著 Piper Sandler 向 Harsh Kumar 提出下一個問題。

A lot of people have asked about supply. I wanted to ask a question about demand. So this is the fifth or the sixth quarter, Steve and Ganesh, have exceptional demand. I understand at the beginning of the COVID time frame, there was some particular mismatch. But can you help us understand what is fundamentally going on with the end markets that this demand continues to strengthen? And now you are looking at a year's worth of -- years-plus worth of noncancelable orders. So help us with that, if you don't mind.

很多人都問過供應。我想問一個關於需求的問題。所以這是第五或第六季度，Steve 和 Ganesh 有超常的需求。我知道在 COVID 時間框架開始時，存在一些特殊的不匹配。但是，您能否幫助我們了解這種需求持續增強的終端市場的根本情況？現在你正在查看一年的價值 - 年加上價值不可取消的訂單。如果您不介意，請幫助我們。

So demand in all geographies, in all end markets, continues to be strong. And I think they're driven by different requirements and at different times, right? If you take automotive, some of it was shortages. And then as they have tried to solve some of the shortages as content and there's a richening mix of the cars that is driving consumption of semiconductors. You take office automation. There was the return to -- the work from home at first and now there is some amount of returning to the office and what needs to be done.

因此，所有地區、所有終端市場的需求持續強勁。而且我認為它們是由不同的需求和不同的時間驅動的，對吧？如果您選擇汽車，其中一些是短缺。然後，當他們試圖解決內容方面的一些短缺時，汽車的豐富組合正在推動半導體的消費。你採取辦公自動化。有返回 - 起初在家工作，現在有一些返回辦公室和需要做的事情。

So segment by segment by segment when you go into that, what we find is that the demand drivers, some of those or the megatrends we have talked about, some of that is still catch-up demand that people are trying to put in place. Demand continues to be extremely strong, as reflected in the bookings we see, the backlog we have, the period of time over which people are willing to place backlog, and the percentage that they're willing to have is noncancelable.

因此，當您逐個細分市場時，我們發現需求驅動因素，其中一些或我們已經討論過的大趨勢，其中一些仍然是人們試圖實現的追趕需求。需求仍然非常強勁，這反映在我們看到的預訂、我們擁有的積壓、人們願意放置積壓的時間段以及他們願意擁有的百分比是不可取消的。

Next from Tore Svanberg with Stifel.

接下來是 Tore Svanberg 和 Stifel。

Congratulations on the results. One of your competitors just had a call this morning, and they're talking about some pretty big CapEx numbers, basically regardless of the economic climate. I'm just wondering, philosophically, as you think about your capacity additions over the next few years, it does sound like the plans are a bit more measured, and then also the other CapEx number for fiscal '23.

祝賀結果。你的一個競爭對手今天早上剛接到電話，他們談論的是一些相當大的資本支出數字，基本上不管經濟環境如何。從哲學上講，我只是想知道，當您考慮未來幾年的產能增加時，聽起來確實計劃更加謹慎，然後是 23 財年的另一個資本支出數字。

So we don't have a CapEx for fiscal '23, if that was your question. We will share some of that when we have a May call itself. CapEx decisions are long-term decisions. They're not driven by just what does the next calendar year look like. It's decisions about capacity that we want to be able to serve a 5-, 10-year window of time as we look at it. And so perhaps, we have been more measured, and we do want to be thoughtful in what capacity and what capital are we bringing online, but we have also been aggressive over the last year.

因此，如果這是您的問題，我們沒有 23 財年的資本支出。當我們有一個五月電話會議本身時，我們將分享其中的一些內容。資本支出決策是長期決策。他們並不受下一個日曆年的影響。當我們看到它時，我們希望能夠服務於 5 年或 10 年的時間窗口，這是關於容量的決定。所以也許，我們更加謹慎，我們確實想考慮一下我們在網上帶來的能力和資本，但我們在過去一年中也很積極。

As you have seen in the level of capital expenses that we have put in, in the raising of the CapEx targets that we have had into capacity that we believe is long-term good capacity for Microchip to have both to be able to serve customers, but also to be able to replenish some of the inventory we think we need to as some level of normalization in demand and supply come about.

正如您在我們投入的資本支出水平中所看到的那樣，在提高資本支出目標時，我們認為這是 Microchip 能夠同時為客戶提供服務的長期良好能力，但也為了能夠補充一些我們認為我們需要的庫存，因為需求和供應出現某種程度的正常化。

As Ganesh said, we're not going to give you a fiscal '23 capital plan today. We will put that together as part of our annual operating plan process we go through this quarter. But I think investors should expect that given the environment that we're seeing, our intention to increase the percentage of manufacturing that we do internally, that CapEx will continue to be kind of on the high end of our guidance that we've given on a long-term basis next year, and we'll give you a more firm number next quarter.

正如 Ganesh 所說，我們今天不會為您提供 23 財年的資本計劃。我們將把這些放在一起，作為我們本季度經歷的年度運營計劃流程的一部分。但我認為投資者應該預期，鑑於我們所看到的環境，我們打算增加我們內部進行的製造百分比，資本支出將繼續處於我們給出的指導的高端明年的長期基礎，我們將在下個季度給你一個更確定的數字。

We'll hear next from William Stein with Truist Securities.

接下來，我們將聽到 William Stein 與 Truist Securities 的對話。

I'll add my congratulations to the very strong execution. There's a comment in the press release that, I don't know if you've touched on during this discussion, I don't quite understand. I certainly understand we're capacity-constrained; Microchip is, the whole industry is. Demand is very strong. Revenue is going up next quarter. I think the press release noted that inventory days you expect to increase next quarter. Is that for -- are you building demand for product that has -- building inventory for product that has demand in future quarters, that's just happened to not be required to be delivered during Q1? Or is it WIP versus finished goods? Can you help me understand that?

我要對非常強大的執行表示祝賀。新聞稿中有一條評論說，不知道你們在討論中是否提到過，我不太明白。我當然理解我們的能力有限。微芯片是，整個行業都是。需求非常強勁。下個季度收入會增加。我認為新聞稿指出，您預計下個季度的庫存天數會增加。那是為了——你是否正在為有需求的產品建立需求——為未來幾個季度有需求的產品建立庫存，而這恰好不需要在第一季度交付？還是在製品與成品？你能幫我理解嗎？

Yes. I mean we're ramping our factories. We're seeing input costs increase to the supply chain and all those things are impacting our costs. And we demonstrated in our Analyst and Investor Day that we want to increase the days of inventory in the balance sheet to be able to better support customers. So raw materials, work in process is absolutely going up. Input costs continue to rise. And we're positioning ourselves to be able to continue to grow the business, as Ganesh has described before.

是的。我的意思是我們正在擴大我們的工廠。我們看到供應鏈的投入成本增加，所有這些都在影響我們的成本。我們在分析師和投資者日展示了我們希望增加資產負債表中的庫存天數，以便能夠更好地支持客戶。所以原材料，在製品絕對是在上升。投入成本繼續上升。正如 Ganesh 之前所描述的，我們正在將自己定位為能夠繼續發展業務。

If we can build it, we're shipping it. So we're not trying to build inventory and hold shipments back. Clearly, there's more WIP, work in progress, there's more materials that we're going to need. We're in a growing environment. So what we have to have internally is to be able to feed forward-looking demand, not just backward-looking demand.

如果我們能建造它，我們就會運送它。因此，我們不會試圖建立庫存並阻止發貨。顯然，還有更多的在製品，正在進行的工作，還有更多我們需要的材料。我們處於一個成長的環境中。因此，我們內部必須擁有的是能夠滿足前瞻性需求，而不僅僅是向後看的需求。

Right. And also, as I mentioned in kind of my prepared remarks is as gross margin improves, that essentially increases the days of inventory on the balance sheet. It's just the way the math works there.

對。而且，正如我在準備好的評論中提到的那樣，隨著毛利率的提高，這從本質上增加了資產負債表上的庫存天數。這就是數學在那里工作的方式。

We'll take our next question from Chris Danely with Citi.

我們將向花旗的 Chris Danely 提出下一個問題。

So sequential revenue growth is slowing down a little bit [easily] there's some Omicron issues and other hiring issues. Assuming that gets fixed in the March quarter, does that mean that revenue growth should accelerate in the June quarter? And will you be able to start to catch up and maybe try and reduce this unsupported backlog, if that happens?

因此，連續收入增長正在放緩一點[容易]存在一些 Omicron 問題和其他招聘問題。假設這個問題在 3 月季度得到解決，這是否意味著 6 月季度的收入增長應該會加速？如果發生這種情況，您是否能夠開始趕上並嘗試減少這種不受支持的積壓？

So Chris, the limitation is not on the demand side. It's on the supply side. We're working our CAC to address the supply constraints. COVID was an extra factor that we had not built into our plans. Obviously, no one knew about it until the December time frame. We will hopefully clear through some of that going through this quarter. But there are also challenges on. Earlier on, we talked about getting equipment in on time has been a challenge. Hiring all the people has been a challenge. So we're running like heck. We expect that the June quarter will have more favorable capabilities, barring any unknowns in terms of where we might go.

所以克里斯，限制不在需求方面。這是在供應方面。我們正在努力解決供應限制問題。 COVID 是一個額外的因素，我們沒有納入我們的計劃。顯然，直到 12 月的時間框架，沒人知道這件事。我們希望通過本季度清除其中的一些問題。但也有挑戰。早些時候，我們談到按時交付設備是一個挑戰。僱用所有人一直是一個挑戰。所以我們跑得像地獄一樣。我們預計六月季度將有更有利的能力，除非我們可能去哪裡有任何未知數。

We'll hear next from Chris Caso with Raymond James.

接下來我們將聽到 Chris Caso 和 Raymond James 的講話。

My question is on pricing. And I know as input costs were rising last year, you were quick to pass along those price increases. I guess, well, just 3 sub-questions to that. One, do you believe that the price -- the input price increases have -- are behind us now? Or is there potential for those to go higher as the year goes on? Are those price increases now fully baked into the quarterly results now that you're guiding for the March quarter? And then at what point do we start to kind of anniversary these price increases? And I'm guessing you're not going to want to give us the magnitude of how much pricing has gone up. But at kind of what point does that -- is that no longer a factor in your year-on-year comps?

我的問題是關於定價。我知道隨著去年投入成本的上升，你很快就會把這些價格上漲轉嫁出去。我想，好吧，只有 3 個子問題。一，你認為價格——投入價格上漲——現在已經過去了嗎？或者隨著時間的推移，這些人是否有可能走高？既然您正在指導 3 月季度，這些價格上漲現在是否已完全納入季度業績？然後我們在什麼時候開始這些價格上漲的周年紀念日？而且我猜你不會想告訴我們價格上漲的幅度。但是在什麼時候——這不再是你的年度比較的一個因素嗎？

So let me try and parse your 3 questions and see how best to answer it. So firstly, input prices for us, so our costs continue to go up. They are happening from different suppliers at different points in time with different magnitude. So what you see reflected in our COGS, our days of inventory and all that is, in fact, an aggregation of what is taking place every quarter. But our costs are going up and will continue to go up as we go through the year as that our structured cost increases built into 2022.

所以讓我試著解析你的 3 個問題，看看如何最好地回答它。所以首先，為我們投入價格，所以我們的成本繼續上升。它們在不同的時間點從不同的供應商以不同的幅度發生。因此，您所看到的反映在我們的 COGS、我們的庫存天數以及所有這些實際上是每個季度發生的事情的匯總。但是我們的成本正在上升，並且隨著我們的結構性成本在 2022 年的增長而繼續上升。

For pricing, we have done them at specific points to try and not have a price increase every time there is a cost increase on us. That will also continue at some -- as we collect cost increases that we have incurred and pass them on as price increases to a customer. Our intention is to be able to make sure that we're able to cover the increase that we have taken on.

對於定價，我們已經在特定點進行了嘗試，並且每次我們的成本增加時都不會增加價格。這也將在某些情況下繼續 - 因為我們收集我們已經產生的成本增加並將它們作為價格上漲轉嫁給客戶。我們的目的是能夠確保我們能夠支付我們已經承擔的增長。

It's hard to know in the current environment when does adjustment mechanisms that we have stopped. It's an inflationary environment. We know that our suppliers are facing that inflation. They are passing on that inflation to us. There are large capital cost that they have incurred, the large capital costs we are incurring that are building into the cost structure. The labor costs have gone up quite significantly. The material costs have gone up quite significantly. And that hasn't stemmed as of yet. And I don't know if a year from now, we might be in better times from an inflationary standpoint. But as long as that inflation is there and cost increases are passed on to us, we will pass them on as price increases.

在目前的環境下，很難知道我們什麼時候停止了調整機制。這是一個通貨膨脹的環境。我們知道我們的供應商正面臨著通貨膨脹。他們正在把通貨膨脹轉嫁給我們。他們已經產生了大量的資本成本，我們正在產生的大量資本成本正在構建到成本結構中。勞動力成本大幅上漲。材料成本大幅上漲。而這還沒有停止。而且我不知道一年後，從通貨膨脹的角度來看，我們是否會處於更好的時期。但只要通貨膨脹存在並且成本增加轉嫁給我們，我們就會將它們作為價格上漲轉嫁。

(Operator Instructions) We'll hear next from Joe Moore with Morgan Stanley.

（操作員說明）接下來我們將聽到喬·摩爾和摩根士丹利的談話。

I wonder if you could talk about your customer level of inventory. I know we're dealing with the shortage situations, but it seems like in the past, we get into incomplete kitting where maybe you have inventory of other people's components waiting for yours. Do you have any sense for that? And are you the bottleneck component in enough of these cases that you feel pretty confident that the inventory is as lean as it looks?

我想知道您是否可以談談您的客戶庫存水平。我知道我們正在處理短缺的情況，但似乎在過去，我們進入了不完整的配套，也許你有其他人的組件庫存在等待你的。你對此有任何意義嗎？在這些情況下，您是否是足夠多的瓶頸組件，以至於您對庫存與看起來一樣精益充滿信心？

So we get inventory visibility through our channel because they report that on a regular basis to us. To our OEM customers, we really don't get -- they don't report to us. We might be able to look through their balance sheets as they report them and see what [has happened]. But it's really not specific to us.

因此，我們通過我們的渠道獲得庫存可見性，因為他們會定期向我們報告。對於我們的 OEM 客戶，我們真的沒有得到——他們沒有向我們報告。當他們報告資產負債表時，我們也許可以查看他們的資產負債表，看看[發生了什麼]。但這真的不是我們特有的。

The intensity of customer escalations has not really backed off. Every single day, I am involved in half a dozen or more, personally, which means that the rest of the company has an order or 2 magnitudes higher than that are involved. And those are all the places where something that Microchip provides them is holding up that customer's ability to complete what they're doing. Now we're, of course, aware of this, what has been termed the golden screw syndrome, where customers may be building inventory on product they can get shipments off while they await shipments of the product that they need to complete the bill of materials. It's reasonable to assume there's some part of that, that it would apply to us as well.

客戶升級的強度並沒有真正退縮。就我個人而言，每一天，我都參與了六個或更多的事情，這意味著公司的其他人比參與的人數要高一個或 2 個數量級。這些都是 Microchip 提供給他們的東西，可以幫助客戶完成他們正在做的事情。當然，現在我們已經意識到這一點，即所謂的金螺絲綜合症，客戶可能會在產品上建立庫存，他們可以在等待完成材料清單所需的產品發貨時將其發貨.可以合理地假設其中的某些部分也適用於我們。

But given our 90-day noncancelable terms for standard backlog at a minimum of 12 months of noncancelable for PSP backlog, we believe there are significant disincentives for our customers to order meaningfully more than what they need.

但是，鑑於我們的標準積壓訂單的 90 天不可取消條款至少 12 個月的 PSP 積壓訂單不可取消，我們認為對於我們的客戶訂購比他們需要的更多的有意義的訂單有很大的抑製作用。

We'll take our next question from Ambrish Srivastava with BMO.

我們將回答 Ambrish Srivastava 與 BMO 的下一個問題。

Ganesh, I had a question on OpEx. You mentioned that you're below the long-term target range of 22.5% to 23.5%. Should we expect OpEx then to catch up to the lower end, at least to the lower end of that range as we go through the next few quarters?

Ganesh，我有一個關於 OpEx 的問題。您提到您低於 22.5% 至 23.5% 的長期目標範圍。我們是否應該期望 OpEx 在接下來的幾個季度中趕上低端，至少達到該範圍的低端？

It will go slowly. You can see we tapped it up in this quarter. Eric, maybe you want to talk a little bit more about kind of how the rate at which we would do that.

它會慢慢走。你可以看到我們在本季度挖掘了它。埃里克，也許你想多談談我們這樣做的速度。

Yes. I think it's very much dependent on our hiring success, right? I mean we're challenged in getting the labor that we need throughout the company. It's just the market right now, and we're working hard with our HR teams to make that happen. So I think it's going to be a gradual increase, but the way we want you modeling long term is within our long-term model, which is 22.5% to 23.5%, and we're below that this quarter.

是的。我認為這在很大程度上取決於我們的招聘成功，對吧？我的意思是，我們在獲得整個公司所需的勞動力方面面臨挑戰。現在只是市場，我們正在與我們的人力資源團隊一起努力實現這一目標。所以我認為這將是一個逐漸增加的過程，但我們希望你長期建模的方式是在我們的長期模型中，即 22.5% 到 23.5%，我們在本季度低於此水平。

And there's wage inflation as well, which is higher than historical. And we expect that will continue for some time.

還有工資通脹，高於歷史水平。我們預計這將持續一段時間。

We'll hear our next question from Christopher Rolland with SIG.

我們將聽取來自 SIG 的 Christopher Rolland 的下一個問題。

And one for Ganesh or Steve. So we are coming off of the TI update, and they're going to have somewhere between 5 to 8 300-millimeter fabs, which is pretty unbelievable. But do you guys were -- and they're not the only adding 300-millimeter fabs. So do you guys worry about a flood of kind of super efficient analog and embedded product hitting the market eventually here, I guess, first of all. And secondly, does this change your thinking about getting your own 300-millimeter fab to compete?

還有一個給 Ganesh 或 Steve。所以我們即將結束 TI 更新，他們將擁有 5 到 8 300 毫米晶圓廠，這非常令人難以置信。但是你們是不是——而且他們不是唯一增加 300 毫米的晶圓廠。所以你們是否擔心最終會有大量超高效的模擬和嵌入式產品湧入市場，我想，首先。其次，這是否會改變您讓自己的 300 毫米晶圓廠參與競爭的想法？

If you look over time, I mean, capacity has come on at different points in the industry. At this point in time, we're not feeling a particular concern about 12-inch capacity and what it might do to our analog business. We do build some analog products through our foundry partners at our own 12-inch. A 12-inch fab at some point might be in Microchip's future. It isn't one that we're looking at today. And we'll just have to evaluate where the situation is and what makes sense.

我的意思是，隨著時間的推移，產能已經出現在行業的不同階段。目前，我們並沒有特別擔心 12 英寸容量以及它可能對我們的模擬業務產生的影響。我們確實通過我們的代工合作夥伴在我們自己的 12 英寸上製造了一些模擬產品。 Microchip 的未來可能會在某個時候建造一座 12 英寸的晶圓廠。這不是我們今天要討論的。我們只需要評估情況在哪里以及什麼是有意義的。

But today, we're focused on the technologies that we build in-house, the work that we're doing to ensure that, that trailing-edge technology, which is really a limitation not just in our growth, but actually part of the industry's growth. There is not enough investment going in to those product lines that limit large end equipment. And we want to make sure that we have our capacity well lined up to participate in that growth and help our customers as well. Do you want to add anything else, Steve?

但是今天，我們專注於我們內部構建的技術，我們正在做的工作以確保這種先進技術，這不僅是我們增長的限制，而且實際上是我們的一部分行業的增長。那些限制大型終端設備的產品線沒有足夠的投資。我們希望確保我們有足夠的能力參與這種增長並幫助我們的客戶。你還想補充什麼嗎，史蒂夫？

I would just add that based on what we know, the number of fabs being added by the company that you named, there is going to be a period of substantial underutilization and substantial underperformance and a significant headwind to the gross margin delivered by all that cost that they have to absorb. So I think you're talking about very low cost capacity. I think, I look at it just the opposite. I think there's going to be a significant cost problem for them. And not having all that 12-inch capacity, we're making enormous gross margins. Our operating margins are higher than our long-term target almost already, right?

我只想補充一點，根據我們所知道的，你所命名的公司增加的晶圓廠數量，將會有一段時期的充分利用不足和嚴重的業績不佳，以及所有這些成本帶來的毛利率的重大逆風他們必須吸收。所以我認為你在談論非常低成本的容量。我想，我的看法正好相反。我認為這對他們來說將是一個重大的成本問題。由於沒有那麼多 12 英寸的容量，我們正在賺取巨大的毛利率。我們的營業利潤率幾乎已經高於我們的長期目標，對吧？

It's getting close to it.

它越來越接近它了。

Getting close to it. So -- and we continue to make further improvements with bringing test inside. The technology we licensed last quarter, which we'll be producing inside. So we got plenty of buttons on ourselves to push, and I'm really not concerned about somebody else's capacity coming in. I recently learned of a report that there's $150 billion of investment that would be required to bring the trailing-edge capacity online for the next 5 years. The capacity is that much short on the trailing edge. Why? Because no foundry is putting additional trailing-edge capacity. They're only putting leading edge. So trailing edge has to be done by whoever. And given that, there is not $150 billion of capital being put into trailing-edge technology in the coming 5 years. So I think I see this capacity to be short as far as we can see right now.

接近它。所以 - 我們繼續通過將測試帶入內部進行進一步改進。我們上個季度獲得許可的技術，我們將在內部生產。所以我們自己有很多按鈕可以推動，我真的不擔心其他人的產能進入。我最近得知一份報告稱，需要 1500 億美元的投資才能將後緣產能上線未來5年。後緣的容量要短得多。為什麼？因為沒有代工廠增加額外的後緣產能。他們只是把前沿。所以後緣必須由誰來完成。鑑於此，未來 5 年不會有 1500 億美元的資金投入到前沿技術上。所以我認為就我們現在所看到的而言，我認為這種能力很短。

We'll take our next question from Nick Todorov with Longbow Research.

我們將向 Longbow Research 的 Nick Todorov 提出我們的下一個問題。

I have a little bit more philosophical question. How would you characterize the level of trust in the supply chain between suppliers, customers, the channel? Do you think there's been damage sustained? And given all the disruptions and what kind of impact is that potentially having?

我有一個更哲學的問題。您如何描述供應商、客戶和渠道之間的供應鏈信任程度？你覺得有沒有受到傷害？考慮到所有的干擾，這可能會產生什麼樣的影響？

Trust is built over many, many years. It isn't something that you either gain or lose in the course of a short period of time, which is what I would refer to the last 6, 12 months as. And trust is a function of communication, managing expectations, treating each other with respect. And all of those are consistent with how we work with our customers and we work with our suppliers and what we do. So no, I don't think trust has been a thing. I think there's clearly stress points. People are looking to grow more. We're looking to grow more. We want more. Our customers are looking to grow more, they want more. But there's a realistic sense that we're doing the best that we can within the constraints that we have, just as our suppliers are working as best as they can within the constraints that they have. And we both share some responsibility in how we manage the path going forward. But I don't see any trust issues on either the customer side or the supplier side that's an issue.

信任是建立了很多很多年的。這不是你在短時間內獲得或失去的東西，這就是我所說的過去 6、12 個月。信任是溝通、管理期望、尊重彼此的功能。所有這些都與我們與客戶合作的方式、我們與供應商的合作方式以及我們的工作相一致。所以不，我不認為信任是一回事。我認為有明顯的壓力點。人們正在尋求增長。我們希望增長更多。我們想要更多。我們的客戶希望增長更多，他們想要更多。但是有一種現實的感覺是，我們正在盡我們所能在我們所擁有的限制範圍內做到最好，就像我們的供應商在他們所擁有的限制範圍內盡可能地工作一樣。我們都在如何管理前進的道路上分擔一些責任。但我認為無論是客戶方面還是供應商方面都沒有任何信任問題。

Well, it's also a relative equation. If we were not shipping everything a customer needs but they were getting all the products from our competitors whenever they are designed with our competitors, then it would be a problem, a bigger problem for us and losing trust because we're letting them down more than anybody else. But that's not the case. It's actually just the obvious opposite. Customer after customer, we are being told that despite the constraints, we have enabled their success in the last year, 2 years, more than the others have. Our constraints are -- there are many competitors who won't even take an escalation call. They would say, don't bother us. There's nothing we can do. That's all we can give you. And at Microchip, we are on numerous calls all day, every day of the week, and taking customers call, explaining them the situation, improving where we can, but giving shoulders -- giving a shoulder to cry on for the customers. And that empathy is helpful. So I think, in general, we are building trust relative to our competitors in destroying trust.

嗯，這也是一個相對方程。如果我們沒有運送客戶需要的所有東西，但他們從我們的競爭對手那裡獲得所有與我們的競爭對手一起設計的產品，那麼這將是一個問題，對我們來說是一個更大的問題，並且會失去信任，因為我們讓他們失望得更多比任何人。但事實並非如此。實際上恰恰相反。一個接一個的客戶，我們被告知儘管有限制，但我們在過去的一年裡幫助他們取得了成功，2 年，比其他人更多。我們的限制是 - 有許多競爭對手甚至不會接聽升級電話。他們會說，不要打擾我們。我們無能為力。這就是我們能給你的一切。在 Microchip，我們每天、一周中的每一天都在接聽客戶的電話，向他們解釋情況，盡我們所能進行改進，但也給予支持——給予支持為客戶哭泣。這種同理心是有幫助的。所以我認為，總的來說，我們在破壞信任的過程中建立了相對於競爭對手的信任。

We'll take a final question from Harsh Kumar with Piper Sandler.

我們將回答 Harsh Kumar 和 Piper Sandler 的最後一個問題。

A tactical one here. Ganesh, I believe when you gave the commentary you may not have provided any color on how you expect these segments to perform in the March quarter. I was curious if you would take a second to just kind of give us whatever -- what vision you can and how you expect the microcontroller analog business to perform in March.

這裡是戰術。 Ganesh，我相信當您發表評論時，您可能沒有就您期望這些細分市場在 3 月季度的表現提供任何顏色。我很好奇你是否願意花一點時間給我們任何東西——你能有什麼願景，以及你期望微控制器模擬業務在三月份的表現如何。

So we don't break out our product line for each quarter in terms of the guidance. They all work together on it. Right now, all of them are supply limited. All end markets are supply limited. It's really how effectively we can bring capacity on, fight through some of the COVID issues and all of that. And the demand is there in all product lines, all end markets for what we need to do. And for the -- for at least many more quarters, that's really what determines what the strength is as seen in the product line or in an end market.

因此，我們不會根據指導劃分每個季度的產品線。他們都在這方面共同努力。目前，所有這些都是供應有限的。所有終端市場供應有限。這真的是我們如何有效地提高能力，解決一些 COVID 問題等等。所有產品線、所有終端市場都對我們需要做的事情有需求。對於 - 至少在更多季度，這確實決定了產品線或終端市場的實力。

I think it's probably helpful to look back (inaudible). We had a few quarters last calendar year where microcontroller analog outperformed each other. But overall, for the year, Ganesh gave year-over-year numbers. They really performed right in line with each other in terms of growth.

我認為回顧過去可能會有所幫助（聽不清）。上個日曆年我們有幾個季度的微控制器模擬表現優於對方。但總的來說，在這一年裡，Ganesh 給出了同比數字。他們在增長方面確實表現得非常一致。

It's exactly the same.

完全一樣。

That does conclude today's question-and-answer session. I'd like to turn the conference back over to Mr. Moorthy for any additional or closing remarks.

今天的問答環節到此結束。我想將會議轉回給 Moorthy 先生，以獲取任何補充或結束語。

Great. Well, thank you, everybody, for attending. We do have meetings and conferences and all that coming up in the next several weeks, and we look forward to speak with you soon. So thank you. Good afternoon.

偉大的。嗯，謝謝大家的出席。在接下來的幾週內，我們確實有會議和會議以及所有這些，我們期待很快與您交談。所以謝謝。下午好。

Thank you. And that does conclude today's conference. We do thank you all for your participation. You may now disconnect.

謝謝你。這確實結束了今天的會議。我們非常感謝大家的參與。您現在可以斷開連接。