微晶片科技 (MCHP) 2021 Q1 法說會逐字稿

Good day, everyone, and welcome to Microchip's First Quarter Fiscal 2021 Financial Results Conference Call. As a reminder, today's call is being recorded.

大家好，歡迎參加 Microchip 2021 財年第一季度財務業績電話會議。提醒一下，今天的通話正在錄音中。

At this time, I would like to turn the call over to Microchip's President and Chief -- excuse me, Microchip's Chief Financial Officer, Eric Bjornholt. Please go ahead, sir.

在這個時候，我想把電話轉給 Microchip 的總裁兼首席執行官 - 對不起，Microchip 的首席財務官 Eric Bjornholt。請繼續，先生。

Thanks, Brandon, 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.

謝謝，布蘭登，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的財務業績做出預測和其他前瞻性陳述。我們想提醒您，此類陳述是預測，實際事件或結果可能存在重大差異。

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.

請參閱我們今天的新聞稿以及我們最近向美國證券交易委員會提交的文件，這些文件確定了可能影響 Microchip 的業務和運營結果的重要風險因素。

In attendance with me today are Steve Sanghi, Microchip's Chairman and CEO; and Ganesh Moorthy, Microchip's President and COO. I will comment on our first quarter financial performance, and Steven and Ganesh will then give their comments on the results and discuss the current business environment as well as our guidance. We will then be available to respond to specific investor and analyst questions.

今天和我一起出席的有 Microchip 董事長兼首席執行官 Steve Sanghi； Microchip 總裁兼首席運營官 Ganesh Moorthy。我將對我們第一季度的財務業績發表評論，然後 Steven 和 Ganesh 將對結果發表評論，並討論當前的商業環境以及我們的指導意見。然後我們將可以回答具體的投資者和分析師問題。

We are including information in our press release and in 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 of our website at www.microchip.com, which we believe you will find useful when comparing our GAAP and non-GAAP results. We have also posted a summary of our outstanding debt and leverage metrics on our website.

我們在新聞稿和本次電話會議中包含了有關各種 GAAP 和非 GAAP 措施的信息。我們在我們網站 www.microchip.com 的投資者關係頁面上發布了完整的 GAAP 與非 GAAP 對賬，我們相信您在比較我們的 GAAP 和非 GAAP 結果時會發現有用。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 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 GAAP 基礎上提及這些結果，這是基於收購活動、基於股份的薪酬和我們新聞稿中所述的某些其他調整影響之前的費用。

Net sales in the June quarter were $1.31 billion, which was down 1.3%, sequentially and above the midpoint of our upwardly revised guidance from June 2, 2020, when net sales were expected to be flat to down 6% sequentially. We have posted a summary of our GAAP net sales as well as end-market demand by product line and geography on our website for your reference.

6 月季度的淨銷售額為 13.1 億美元，環比下降 1.3%，高於我們自 2020 年 6 月 2 日起向上修正的指引的中點，當時預計淨銷售額將持平至環比下降 6%。我們已在我們的網站上按產品線和地理位置發布了我們的 GAAP 淨銷售額以及終端市場需求的摘要，供您參考。

On a non-GAAP basis, gross margins were strong at 61.7%. Operating expenses were at 23.1%, and operating income was an outstanding 38.6%, all better than the high end of our upwardly revised guidance.

按非美國通用會計準則計算，毛利率高達 61.7%。營業費用為 23.1%，營業收入為 38.6%，均好於我們上調指引的上限。

Non-GAAP net income was $401.9 million, non-GAAP earnings per diluted share was $1.56 and $0.03 above the high end of our upwardly revised guidance from June 2.

非 GAAP 淨收入為 4.019 億美元，非 GAAP 每股攤薄收益為 1.56 美元，比我們從 6 月 2 日起向上修訂的指引的上限高出 0.03 美元。

On a GAAP basis, in the June quarter, gross margins were 61% and include the impact of $6.4 million of share-based compensation and $2.8 million of COVID-19 shelter-in-place restrictions on manufacturing activities. Total operating expenses were $580 million and include acquisition intangible amortization of $235.4 million, special charges of $0.3 million, $6 million of acquisition-related and other costs and share-based compensation of $36 million. The GAAP net income was $123.6 million or $0.48 per diluted share.

根據 GAAP，在 6 月季度，毛利率為 61%，其中包括 640 萬美元的股票薪酬和 280 萬美元的 COVID-19 就地避難所限制對製造活動的影響。總運營費用為 5.8 億美元，包括 2.354 億美元的收購無形攤銷、30 萬美元的特殊費用、600 萬美元的收購相關成本和其他成本以及 3600 萬美元的股份補償。GAAP 淨收入為 1.236 億美元或每股攤薄收益 0.48 美元。

Our June quarter GAAP tax benefit was impacted by a variety of factors, including tax reserve releases associated with the statute of limitations expiring, deferred tax adjustments related to intercompany movements of intellectual property rights, offset by tax reserve accruals associated with the outcome of the Altera case during the period and other matters.

我們 6 月季度的 GAAP 稅收優惠受到多種因素的影響，包括與時效到期相關的稅收儲備金釋放、與公司間知識產權轉移相關的遞延稅收調整、與 Altera 結果相關的應計稅收儲備抵消期間的案件等事項。

The non-GAAP cash tax rate was 6% in the June quarter. We expect our non-GAAP cash tax rate for fiscal '21 to be about 6%, exclusive of the transition tax, any potential tax associated with restructuring the Microsemi operations into Microchip global structure and any tax audit settlements related to taxes accrued in prior fiscal years. We have many tax attributes and net operating losses and tax credits as well as U.S. tax interest deductions that we believe will keep our cash tax payments low. The cash tax payments beyond the June 2020 quarter associated with the transition tax are expected to be about $245 million and will be paid out over the next 6 years, including a payment that we made in July 2020 of $23.2 million. We have posted a schedule of our projected transition tax payments on the Investor Relations page of our website.

6 月季度的非 GAAP 現金稅率為 6%。我們預計 21 財年的非 GAAP 現金稅率約為 6%，不包括過渡稅、與將 Microsemi 業務重組為 Microchip 全球結構相關的任何潛在稅款以及與上一財年應計稅款相關的任何稅務審計結算年。我們有許多稅收屬性和淨營業虧損和稅收抵免以及美國稅收利息減免，我們相信這將使我們的現金納稅額保持在較低水平。2020 年 6 月季度之後與過渡稅相關的現金稅款預計約為 2.45 億美元，並將在未來 6 年內支付，其中包括我們在 2020 年 7 月支付的 2320 萬美元。我們已在我們網站的投資者關係頁面上發布了預計的過渡稅支付時間表。

Our inventory balance at June 30, 2020, was $657.2 million. We had 117 days of inventory at the end of the June quarter, which was down 5 days from the prior quarter's levels and right in the middle of our publicly-stated inventory target of 115 to 120 days. Inventory at our distributors in the June quarter were 30 days compared to 29 days at the end of March. We believe distribution inventory levels for Microchip are still low compared to the historical range we have experienced over the past 10 years, which is between 27 and 47 days.

截至 2020 年 6 月 30 日，我們的庫存餘額為 6.572 億美元。我們在 6 月季度末的庫存天數為 117 天，比上一季度的水平下降了 5 天，正好處於我們公開宣布的 115 至 120 天庫存目標的中間。我們經銷商在 6 月季度的庫存為 30 天，而 3 月底為 29 天。我們認為，與我們過去 10 年經歷的 27 至 47 天的歷史範圍相比，Microchip 的分銷庫存水平仍然較低。

The cash flow from operating activities was $501.8 million in the June quarter. As of June 30, the consolidated cash and total investment position was $380.2 million. We paid down $394 million of total debt in the June quarter. And over the last 8 full quarters since we closed the Microsemi acquisition and incurred over $8 billion of debt to do so, we have paid down $2.62 billion of debt and continue to allocate substantially all of our excess cash beyond dividends to aggressively bring down this debt. We have accomplished this despite the adverse macro and market conditions during most of this period, which we feel is a testimony to the cash generation capabilities of our business as well as our ongoing operating discipline. We continue to expect our debt levels to reduce significantly over the next several years.

6 月季度經營活動產生的現金流量為 5.018 億美元。截至 6 月 30 日，綜合現金和總投資頭寸為 3.802 億美元。我們在 6 月季度償還了 3.94 億美元的總債務。自從我們完成對 Microsemi 的收購併為此承擔了超過 80 億美元的債務以來，在過去的 8 個完整季度中，我們已經償還了 26.2 億美元的債務，並繼續分配除股息以外的所有多餘現金，以積極降低這筆債務.儘管在此期間的大部分時間宏觀和市場條件不利，但我們仍然實現了這一目標，我們認為這證明了我們業務的現金生成能力以及我們持續的經營紀律。我們繼續預計未來幾年我們的債務水平將大幅下降。

Our adjusted EBITDA in the June quarter was $562.2 million, and our trailing 12-month adjusted EBITDA was $2.154 billion. Our net debt to adjusted EBITDA, excluding our very long-dated convertible debt that matures in 2037 and is more equity-like in nature, was 4.24 at the end of June 2020, down from 4.46 at the end of March 2020.

我們在 6 月季度調整後的 EBITDA 為 5.622 億美元，過去 12 個月的調整後 EBITDA 為 21.54 億美元。截至 2020 年 6 月底，我們的淨債務與調整後 EBITDA 之比為 4.24，低於 2020 年 3 月底的 4.46，不包括 2037 年到期且性質更像股權的超長期可轉換債務。

Our dividend payment in the June quarter was $90.4 million.

我們在 6 月季度支付的股息為 9040 萬美元。

Capital expenditures were $9.5 million in the June 2020 quarter. We expect about $15 million in capital spending in the September quarter and overall capital expenditures for fiscal 2021 to be between $50 million and $70 million. We continue to add capital to maintain and operate our internal manufacturing operations, support the production capabilities for new products and technologies as well as to selectively bring in-house some of the assembly and test operations that are currently outsourced. We expect these capital investments will bring some gross margin improvement to our business, particularly for the outsourced Atmel and Microsemi manufacturing activities that we are bringing into our own factories.

2020 年 6 月季度的資本支出為 950 萬美元。我們預計 9 月季度的資本支出約為 1500 萬美元，2021 財年的總體資本支出將在 5000 萬至 7000 萬美元之間。我們繼續增加資本以維持和運營我們的內部製造業務，支持新產品和新技術的生產能力，並有選擇地將目前外包的一些組裝和測試業務引入內部。我們預計這些資本投資將為我們的業務帶來一定的毛利率改善，特別是對於我們正在引入我們自己工廠的外包 Atmel 和 Microsemi 製造活動。

Depreciation expense in the June quarter was $41.1 million.

6 月季度的折舊費用為 4110 萬美元。

I will now turn it over to Ganesh to give his comments on the performance of the business in the June quarter. Ganesh?

我現在將其轉交給 Ganesh，讓他對 6 月季度的業務表現發表評論。像頭神？

Great. Thank you, Eric, and good afternoon, everyone. Let's start by taking a closer look at microcontrollers. In a weak macro environment, our microcontroller business performed better than we expected. On a GAAP basis, our microcontroller revenue was sequentially down 1.3% as compared to the March quarter, while from an end-market demand standpoint, our microcontroller business was sequentially down 2.8%.

偉大的。謝謝埃里克，大家下午好。讓我們從仔細研究微控制器開始。在宏觀環境疲軟的情況下，我們的微控制器業務表現好於我們的預期。根據 GAAP，我們的微控制器收入與 3 月季度相比環比下降 1.3%，而從終端市場需求的角度來看，我們的微控制器業務環比下降 2.8%。

On a GAAP year-over-year basis, our microcontroller business was up 1.2%. We continue to introduce a steady stream of innovative new microcontroller solutions, including the industry's smallest automotive-grade maxTouch controller family, the first functional safety-ready AVR microcontroller family with a peripheral touch controller, the Switchtec advanced fabric generation -- generation 4 PCIe Switch family, which enables complex fabric topologies with greater scalability, lower latency and higher performance and traditional PCIe switches. And last but not least, the Adaptec SmartRAID 3100E RAID, which stands for redundant array of inexpensive disks adapters designed to provide reliable hardware rate protection for customer data in cost-sensitive end applications that require no power and high performance. Microcontrollers overall represented 54.9% of our end-market demand in the June quarter.

按 GAAP 同比計算，我們的微控制器業務增長了 1.2%。我們繼續推出源源不斷的創新微控制器解決方案，包括業界最小的汽車級 maxTouch 控制器系列、第一個具有外設觸摸控制器的功能安全就緒 AVR 微控制器系列、Switchtec 高級結構一代——第 4 代 PCIe 開關系列，它使復雜的結構拓撲具有更大的可擴展性、更低的延遲和更高的性能以及傳統的 PCIe 交換機。最後但同樣重要的是 Adaptec SmartRAID 3100E RAID，它代表廉價磁盤適配器的冗餘陣列，旨在為不需要電源和高性能的成本敏感終端應用程序中的客戶數據提供可靠的硬件速率保護。微控制器總體佔 6 月季度終端市場需求的 54.9%。

Now moving to analog. On a GAAP basis, our analog revenue was sequentially up 0.7% as compared to the March quarter. While from an end-market standpoint, our analog business was sequentially down 0.7%. In both scenarios, our analog business performed better than we expected in the midst of a weak macro environment.

現在轉向模擬。根據 GAAP，我們的模擬收入與 3 月季度相比環比增長 0.7%。而從終端市場的角度來看，我們的模擬業務環比下降了 0.7%。在這兩種情況下，我們的模擬業務在疲軟的宏觀環境中表現都好於我們的預期。

On a GAAP year-over-year basis, our analog business was down 4.2%. During the quarter, we continued to announce and introduce a steady stream of innovative analog products, including an expanded portfolio of over 25 transient voltage suppressor vertical rays and a 32 channel, high-voltage analog multiplexion, further enabling miniaturization of medical ultrasound applications. Analog represented 28.1% of our end-market demand in the June quarter.

按 GAAP 同比計算，我們的模擬業務下降了 4.2%。在本季度，我們繼續發布並推出源源不斷的創新模擬產品，包括超過 25 種瞬態電壓抑制器垂直射線和 32 通道高壓模擬多路復用的擴展產品組合，進一步實現了醫療超聲應用的小型化。模擬產品占我們 6 月季度終端市場需求的 28.1%。

Our FPGA revenue, on a GAAP basis, was down 10.3% sequentially as compared to the March quarter. From an end-market demand standpoint, our FPGA business was sequentially down 6.5%.

與 3 月季度相比，我們的 FPGA 收入按 GAAP 計算環比下降 10.3%。從終端市場需求的角度來看，我們的 FPGA 業務環比下降 6.5%。

Our FPGA business in the June quarter had one significant aerospace customer who were shut down hard due to COVID-19 restrictions for pretty much the entire quarter, resulting in lower-than-expected results. Despite this customer being unlikely to resume production in the September quarter, we are expecting the FPGA business to sequentially grow meaningfully in the September quarter.

我們在 6 月季度的 FPGA 業務有一個重要的航空航天客戶，由於幾乎整個季度的 COVID-19 限制，該客戶被迫關閉，導致業績低於預期。儘管該客戶不太可能在 9 月季度恢復生產，但我們預計 FPGA 業務將在 9 月季度連續顯著增長。

On a GAAP year-over-year basis, our FPGA business was down 4.6%.

按 GAAP 同比計算，我們的 FPGA 業務下降了 4.6%。

During the quarter, we continued to introduce a steady stream of innovative FPGA products, including the vector blocks accelerator software development kit, which enables developers to take advantage of Microchip's all fire FPGAs to easily create low-power neuro network applications. FPGA represented 6.7% of our end-market demand in the June quarter.

本季度，我們繼續推出源源不斷的創新 FPGA 產品，包括矢量塊加速器軟件開發套件，使開發人員能夠利用 Microchip 的 all fire FPGA 輕鬆創建低功耗神經網絡應用程序。FPGA 佔 6 月季度終端市場需求的 6.7%。

Our licensing, memory and other product line, which we refer to as LMO, was flat as compared to the March quarter from an end-market demand standpoint. During the quarter, we introduced a new Phase Noise Analyzer, designed for engineers and scientists who rely on precise and accurate measurements of frequency signals generated for 5G networks, data centers, commercial and military aircraft systems, space vehicle, communication satellite and metrology applications. LMO represented 10.4% of our end-market demand in the June quarter.

從終端市場需求的角度來看，我們的許可、內存和其他產品線（我們稱之為 LMO）與 3 月份季度相比持平。本季度，我們推出了一款新的相位噪聲分析儀，專為依賴精確測量 5G 網絡、數據中心、商用和軍用飛機系統、航天器、通信衛星和計量應用所生成的頻率信號的工程師和科學家而設計。LMO 占我們 6 月季度終端市場需求的 10.4%。

An update regarding coronavirus and its impact on our operations. Most of our nonfactory employee base continues to work from home. Our global teams have been highly engaged, collaborative and productive under the circumstances, resulting in strong customer engagement for new designs and effectiveness in our new product development programs. We would like to thank our teams worldwide for adapting as needed to changing conditions while continuing to deliver results. Our manufacturing operations, especially those in the Philippines and our outsourced partners in Malaysia, worked through various constraints throughout the June quarter and delivered increased output as reflected in our better-than-expected results.

有關冠狀病毒及其對我們運營的影響的更新。我們的大部分非工廠員工繼續在家工作。在這種情況下，我們的全球團隊一直高度參與、協作和富有成效，從而使客戶對新設計的強烈參與和我們新產品開發計劃的有效性。我們要感謝我們的全球團隊根據需要適應不斷變化的條件，同時繼續交付成果。我們的製造業務，尤其是菲律賓的製造業務和我們在馬來西亞的外包合作夥伴，在整個 6 月季度克服了各種限制，並實現了產量增加，這反映在我們好於預期的結果中。

By the end of the June quarter, we had dug out of most of the delinquencies in our shipments that accumulated in April and May when unpredictable constraints from government mandates were in effect. Our customers and our supply chain partners also endure some constraints of their factories and logistics, primarily during the month of April and May. As we progress through May and June, we experienced many short lead time orders from customers, some of which we could not support in the quarter, primarily due to 3 factors: First, customers whose business has strengthened due to COVID-19 conditions like from work-from-home initiatives and medical devices; second, the partial recovery in May and June of some customers' business, which experienced a sharp decline in the March-April time frame, automotive being the biggest example of that in some industrials; and third, an unrealistic expectations from some customers that orders placed with short lead time can be supported by the slack in the supply chain.

到 6 月季度末，我們已經解決了 4 月和 5 月累積的大部分貨運拖欠問題，當時政府指令的不可預測的限制生效。我們的客戶和我們的供應鏈合作夥伴也受到工廠和物流的一些限制，主要是在 4 月和 5 月期間。隨著我們在 5 月和 6 月的進展，我們收到了許多來自客戶的短交貨期訂單，其中一些我們無法在本季度提供支持，這主要是由於 3 個因素：首先，由於 COVID-19 的情況，客戶的業務得到加強，例如來自在家工作的舉措和醫療設備；二是部分客戶業務在5、6月部分恢復，3-4月期間出現大幅下滑，汽車是部分行業最大的例子；第三，一些客戶不切實際的期望，認為短交貨期的訂單可以通過供應鏈的鬆弛來支持。

We are working with our customers to improve the visibility of their backlog so that we may serve them better. Given the current market dynamics, we are providing some qualitative insights into our principal end markets.

我們正在與我們的客戶合作，以提高他們積壓工作的可見性，以便我們可以更好地為他們服務。鑑於當前的市場動態，我們正在對我們的主要終端市場提供一些定性的見解。

Now before we provide commentary for the June quarter, we would first like to share with you our best estimate for our fiscal year '20 revenue by end market. With over 120,000 customers served by Microchip and given the complexity of our customer base, it is laborious to collect this data and we only do so every few years. We remind you that this data is only estimated, and it is not something we can track with high accuracy.

現在，在我們提供 6 月季度的評論之前，我們首先想與您分享我們對終端市場 20 財年收入的最佳估計。Microchip 為超過 120,000 名客戶提供服務，鑑於我們客戶群的複雜性，收集這些數據非常費力，而且我們每隔幾年才收集一次。我們提醒您，此數據只是估計值，我們無法進行高精度跟踪。

Based on our analysis done in the June quarter for the fiscal year '20 revenue, industrial remained our largest end market of 28% of revenue. Computing and data center was next at 18% of revenue; followed by automotive, 15% of revenue. Communications at 14% of revenue, consumer at 13%; and finally, aerospace and defense at 12% of revenue.

根據我們在 6 月季度對 20 財年收入所做的分析，工業仍然是我們最大的終端市場，佔收入的 28%。計算和數據中心緊隨其後，佔收入的 18%；其次是汽車，佔收入的 15%。通信佔收入的 14%，消費者佔 13%；最後，航空航天和國防佔收入的 12%。

With that backdrop to provide context, here are some end-market trend insights for the June quarter that we'd like to share with you. Data center and computing continued to show strength from the shift to work-from-home requirements. However, we anticipate that these segments may revert to more normal demand patterns in the coming months as the search requirements start to dissipate.

在此背景下，我們希望與您分享 6 月季度的一些終端市場趨勢見解。數據中心和計算從轉向在家工作的需求中繼續顯示出優勢。但是，我們預計隨著搜索需求開始消散，這些細分市場可能會在未來幾個月恢復到更正常的需求模式。

Automotive car sales and production in China recovered nicely to grow sequentially and year-over-year, benefiting our China automotive business. Our automotive business everywhere else had a very poor quarter as April and May were adversely impacted by widespread automotive factory shutdowns. We began to see recovery in June and believe that the worst for automotive is behind us.

中國的汽車銷售和生產恢復良好，環比和同比增長，有利於我們的中國汽車業務。我們在其他地方的汽車業務季度表現非常糟糕，因為四月和五月受到廣泛的汽車工廠停工的不利影響。我們在 6 月開始看到復蘇，並相信汽車行業最糟糕的時期已經過去。

Medical devices necessary to treat COVID patients, like ventilators, respirators, oxygen monitors, portable ultrasound machines, they were all strong. In addition to a host of other hospital equipment needed for increased patient loads, medical devices for elective procedures such as hearing aids, pacemakers, defibrillators, some of the large ultrasound MRI machines, those experienced a slowdown as individuals and hospitals delayed elective procedures.

治療 COVID 患者所需的醫療設備，如呼吸機、呼吸器、氧氣監測儀、便攜式超聲機，它們都很堅固。除了增加患者負荷所需的大量其他醫院設備外，助聽器、心臟起搏器、除顫器等擇期手術醫療設備、一些大型超聲核磁共振成像儀等醫療設備也因個人和醫院推遲擇期手術而出現放緩。

Even within the broad-based industrial and consumer markets, which were generally weak, we did see pockets of strength related to COVID-19. In consumer, the strengths that are related to gaming, home improvement and hobbyist projects for people shelter at home. In industrial, the strengths were related to UV disinfection system, air filtration systems, infrared temperature scanners and a generally increasing trend towards touch rate controllers.

即使在普遍疲軟的基礎廣泛的工業和消費市場中，我們也確實看到了與 COVID-19 相關的力量。在消費者方面，與遊戲、家居裝修和為居家避難所的愛好者項目相關的優勢。在工業領域，優勢與紫外線消毒系統、空氣過濾系統、紅外溫度掃描儀和触摸率控制器的普遍增長趨勢有關。

Let me now pass it to Steve for comments about our business and our guidance going forward. Steve?

現在讓我把它轉交給史蒂夫，徵求他對我們的業務和我們未來的指導意見。史蒂夫？

Thank you, Ganesh, and good afternoon, everyone. Today, I would like to first reflect on the results of the fiscal first quarter of 2021, I will then provide guidance for the fiscal second quarter of 2021.

謝謝 Ganesh，大家下午好。今天，我想首先回顧一下 2021 財年第一季度的結果，然後我將為 2021 財年第二季度提供指導。

The June quarter demonstrated what the best of Microchip culture and its people represent. Our global team of operations, business units, sales and marketing and support groups all came together in the middle of a global pandemic, while working with a pay-cut and delivered a superb quarter. I'm proud of how rapidly the Microchip team adapted to the new constraints we faced so that our employees would be safe, our customers could be well served and our supply chain partners engaged to help ensure mutual success despite the challenges we faced.

六月季度展示了 Microchip 文化及其員工所代表的精華。我們的全球運營團隊、業務部門、銷售和營銷以及支持團隊在全球大流行期間齊心協力，同時減薪並交付了出色的季度業績。我為 Microchip 團隊能夠如此迅速地適應我們面臨的新限製而感到自豪，這樣我們的員工就可以安全，我們的客戶可以得到良好的服務，我們的供應鏈合作夥伴也可以參與進來，儘管我們面臨挑戰，但仍能確保共同成功。

Despite the COVID-19 pandemic challenges, we delivered net sales of $1.31 billion that was down only 1.3%, sequentially and down only 1% from the year ago quarter. Our original net sales guidance was to be down 6% sequentially at the midpoint. In early June, we revised it to be down 3% sequentially at the midpoint, and we ended at down only 1.3% sequentially. These are exceptional results against the backdrop of simultaneous supply and demand dislocations.

儘管面臨 COVID-19 大流行的挑戰，我們的淨銷售額仍為 13.1 億美元，環比僅下降 1.3%，比去年同期僅下降 1%。我們最初的淨銷售額指引是在中點連續下降 6%。6 月初，我們在中點將其修正為環比下跌 3%，而我們僅環比下跌 1.3%。在供需同時錯位的背景下，這些都是非凡的結果。

We also delivered outstanding non-GAAP gross margin of 61.7%, 90 basis points above the midpoint of our original guidance from May 7, 2020, and non-GAAP operating margin of 38.6%, 260 basis points above the midpoint of our original guidance. And we did all this while reducing our days of inventory from 122 days to 117 days. I am particularly proud of producing 38.6% operating margin at near the bottom of the business cycle amidst a global pandemic.

我們還實現了 61.7% 的優秀非 GAAP 毛利率，比 2020 年 5 月 7 日的原始指引中點高出 90 個基點，非 GAAP 營業利潤率為 38.6%，比我們原始指引中點高出 260 個基點。我們做這一切的同時將庫存天數從 122 天減少到 117 天。我特別自豪的是，在全球大流行的情況下，在商業周期接近底部時實現了 38.6% 的營業利潤率。

Our consolidated non-GAAP EPS was $1.56, $0.21 above the midpoint of our original guidance and $0.12 above the midpoint of our revised guidance. On a non-GAAP basis, this was also our 119th consecutive profitable quarter.

我們的綜合非 GAAP 每股收益為 1.56 美元，比我們最初指引的中點高出 0.21 美元，比我們修訂後的指引中點高出 0.12 美元。在非 GAAP 基礎上，這也是我們第 119 個連續盈利的季度。

In the June quarter, we paid down $394 million of our debt. Our total debt payment since the end of June 2018 has been about $2.62 billion, bringing our net leverage ratio down to 4.24. The pace of debt payments has been strong despite the weak and uncertain business conditions, underlying the strong -- underlining the strong cash generation characteristics of our business as well as our active efforts to continue to squeeze working capital efficiencies.

在 6 月季度，我們償還了 3.94 億美元的債務。自 2018 年 6 月底以來，我們的總債務支付額約為 26.2 億美元，使我們的淨槓桿率降至 4.24。儘管商業環境疲軟且不確定，但債務支付的步伐一直強勁，這是強大的基礎 - 強調了我們業務強大的現金生成特徵以及我們為繼續壓縮營運資本效率而做出的積極努力。

Now I will discuss our guidance for the September quarter. After a strong March and April, our bookings were soft in May and June. But the bookings we received in May and June had a much higher mix of near-term requirements as the customers and distributors did not have the visibility to place longer-term orders. While the near-term aged to bookings filled up the June quarter, it left the September quarter backlog on July 1, 2020, to be down 8% compared to the backlog for June quarter on April 1, 2020.

現在我將討論我們對 9 月季度的指導。在經歷了強勁的 3 月和 4 月之後，我們的預訂在 5 月和 6 月變得疲軟。但我們在 5 月和 6 月收到的訂單中，短期需求的組合要高得多，因為客戶和分銷商無法下長期訂單。雖然近期預訂滿了 6 月季度，但與 2020 年 4 月 1 日的 6 月季度積壓相比，2020 年 7 月 1 日的 9 月季度積壓訂單下降了 8%。

We also left a large amount of backlog unsupported out of the June quarter because those requirements came inside of our lead time, and we were not able to ship them according to customer request aids. This all prompted us to write a letter to our customers and distributors, first informing them of the business environment and our cycle time to build their products. Then we ask them to place at least 12 weeks of backlog for their requirements. We also informed our customers and distributors that if they ask for expediting of an order, we would need to charge an expedite service fee given the disruptive nature of such orders. Through the letter, we are just trying to encourage customers to give us more visibility so that we can better meet their requirements. The expedite charges have never been material in terms of our overall revenue.

我們還在 6 月季度留下了大量未得到支持的積壓訂單，因為這些要求是在我們的交貨時間內提出的，我們無法根據客戶要求的輔助工具運送它們。這一切都促使我們寫信給我們的客戶和分銷商，首先告知他們商業環境和我們構建他們產品的周期時間。然後我們要求他們為他們的要求放置至少 12 週的積壓。我們還告知我們的客戶和分銷商，如果他們要求加急處理訂單，鑑於此類訂單的破壞性，我們將需要收取加急服務費。通過這封信，我們只是想鼓勵客戶給我們更多的知名度，以便我們更好地滿足他們的要求。就我們的總收入而言，加速費用從來都不是實質性的。

With another month under our belt now since the letter, we have seen some of the customers and distributors respond. The rate of bookings has increased. Our backlog for the September quarter is still well below the backlog for June quarter at the same point in time, but we believe that the stronger bookings now compared to weak bookings of May and June will continue to improve the September quarter backlog compared to June quarter.

從這封信到現在又過了一個月，我們已經看到一些客戶和分銷商做出了回應。預訂率有所提高。我們 9 月季度的積壓訂單仍遠低於同期 6 月季度的積壓訂單，但我們認為，與 5 月和 6 月的疲軟預訂相比，現在的強勁預訂將繼續改善 9 月季度與 6 月季度相比的積壓訂單.

From an end market standpoint, as you heard during Ganesh's remarks, we have several cross-currents, contributing strengths and weaknesses at the same time. The common denominator among them is whether COVID-19 was a tailwind or a headwind during the quarter for a given end market. The diversity of our end-market exposure, which we consider to be a strength, gives us the ability to capitalize on whatever strength there are during challenging market conditions.

從終端市場的角度來看，正如你在 Ganesh 的發言中聽到的那樣，我們有幾個交叉流，同時貢獻了優勢和劣勢。它們之間的共同點是 COVID-19 在本季度對特定終端市場來說是順風還是逆風。我們認為終端市場風險敞口的多樣性是一種優勢，使我們能夠在充滿挑戰的市場條件下利用任何優勢。

Taking all these factors into consideration, we expect our net sales for September quarter to be between flat to down 8% sequentially. A relatively broad guidance range is to help account for the lack of visibility and uncertainty associated with the evolving COVID-19 situation. Based on the much better-than-expected financial results in the June quarter, we gave our employees half of their June quarter salary sacrifice back in the form of a bonus. However, we have maintained the salary cuts in the September quarter due to continued uncertainty.

考慮到所有這些因素，我們預計 9 月季度的淨銷售額將持平至環比下降 8%。一個相對廣泛的指導範圍是為了幫助解決與不斷發展的 COVID-19 情況相關的可見性和不確定性的缺乏。基於 6 月季度好於預期的財務業績，我們以獎金的形式向員工返還了 6 月季度犧牲的一半工資。然而，由於持續的不確定性，我們維持了 9 月季度的減薪。

Our inventory at 117 days is now right in the middle of our 115 to 120 days target. Hence, we are also adjusting the factory schedules and removing the rotating time off.

我們 117 天的庫存現在正好在我們 115 到 120 天目標的中間。因此，我們也在調整工廠時間表並取消輪休時間。

For September quarter, we expect our non-GAAP gross margin to be between 61.2% and 62.2% of sales. We expect non-GAAP operating expenses to be between 23.2% and 24.2% of sales. We expect non-GAAP operating profit percentage to be between 37% and 39% of sales. We expect our non-GAAP earnings per share to be between $1.30 per share to $1.52 per share.

對於 9 月季度，我們預計我們的非 GAAP 毛利率將在銷售額的 61.2% 至 62.2% 之間。我們預計非 GAAP 營業費用將佔銷售額的 23.2% 至 24.2% 之間。我們預計非 GAAP 營業利潤百分比將在銷售額的 37% 至 39% 之間。我們預計我們的非 GAAP 每股收益在每股 1.30 美元至 1.52 美元之間。

We also expect to pay down another approximately $300 million of our debt in the September quarter. We believe that despite the near-term pandemic-driven challenges, we are confident in the strength and diversity of the businesses and end markets we are in to achieve long-term growth in excess of the average semiconductor market growth.

我們還預計在 9 月季度再償還約 3 億美元的債務。我們相信，儘管近期存在大流行病驅動的挑戰，但我們對我們所處業務和終端市場的實力和多樣性充滿信心，能夠實現超過半導體市場平均增長的長期增長。

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 non-GAAP basis except for net sales, which will be on GAAP basis. We believe that GAAP results provide more meaningful comparison to prior quarters, and we request that the analysts continue to report their non-GAAP estimates to first call.

考慮到我們收購會計的所有復雜性，包括無形資產攤銷、重組費用和收購庫存增記，Microchip 將繼續提供指導並在非 GAAP 基礎上跟踪其結果，但淨銷售額除外，淨銷售額將在 GAAP 基礎上基礎。我們相信 GAAP 結果提供了與前幾個季度更有意義的比較，我們要求分析師繼續報告他們的非 GAAP 估計以進行首次通話。

With this, operator, will you please poll for questions.

有了這個，接線員，請你輪詢問題。

(Operator Instructions) The first question will come from Vivek Arya with Bank of America Securities.

（操作員說明）第一個問題將來自美國銀行證券公司的 Vivek Arya。

Steve, I think you mentioned bookings somewhat improved in July. Historically, what do August and September bookings do? And what are your assumptions in giving guidance for this quarter? Are you assuming that the bookings trend kind of stays where it is? Does it get better? Does it get worse? I'm just trying to frame the guidance versus some historical trends and what your assumptions are for what the environment does in the remaining months of the quarter?

史蒂夫，我想你提到 7 月份的預訂量有所改善。從歷史上看，8 月和 9 月的預訂是做什麼的？您在為本季度提供指導時的假設是什麼？您是否假設預訂趨勢會保持原樣？它會好轉嗎？它會變得更糟嗎？我只是想將指導與一些歷史趨勢相比較，以及您對本季度剩餘月份環境的假設是什麼？

So Vivek, first thing I would say is that you should not really be looking at any past trends because this is just not a normal environment. Our bookings and backlogs and expedites and customer requests are really all driven by end market by end market, what the effect of COVID-19 is and what the visibility of the customers and distributors are. So really just absolutely -- bookings in a quarter would be stronger if you go into it with a weaker backlog, and the bookings often will be -- in turns would be lower if you have a strong backlog that all depends on lead time and visibility. So we went into the start of this quarter with basically -- dramatically decreased visibility by our distributors and customers. Therefore, we started the quarter with a very, very weak backlog.

所以 Vivek，我要說的第一件事是你不應該真正關注任何過去的趨勢，因為這不是一個正常的環境。我們的預訂、積壓、加急和客戶要求實際上都是由終端市場驅動的，COVID-19 的影響是什麼，客戶和分銷商的知名度是多少。所以真的絕對 - 如果你進入一個較弱的積壓訂單，那麼一個季度的預訂量會更多，而且預訂通常會 - 如果你有一個強大的積壓訂單，則反過來會更低，這完全取決於交貨時間和可見性.因此，我們在本季度開始時基本上 - 我們的分銷商和客戶的知名度大幅下降。因此，我們在本季度開始時積壓的訂單非常非常少。

If you recall, the June quarter, we started the June quarter on April 1 with a very strong backlog. From -- coming from March and the turn of China from the new Chinese New Year and all that. And then the bookings during the June quarter actually declined through May and June, which was a reverse of what happens in a normal year because June is a very strong quarter and bookings accelerate from April to May to June, it was totally different this time.

如果您還記得，在 6 月季度，我們從 4 月 1 日開始的 6 月季度有非常多的積壓。來自——從三月開始，從新的農曆新年開始轉向中國等等。然後 6 月季度的預訂實際上在 5 月和 6 月下降，這與正常年份的情況相反，因為 6 月是一個非常強勁的季度，預訂從 4 月到 5 月再到 6 月加速，這次完全不同。

So again, in July, August and September, July bookings were up significantly from the June run rate. June was very low. And August is just starting, but looking at just a couple of days of bookings for August, they're also pretty good and even higher than the July average. So our expectation is that August and September bookings would be strong. And near-term turns still from those bookings will be significant, which will make up for how the quarter looks against the same point in time versus June. It will improve, and that's really what is included in our guidance.

同樣，在 7 月、8 月和 9 月，7 月的預訂量明顯高於 6 月的運行率。六月很低。8 月剛剛開始，但看看 8 月短短幾天的預訂量，它們也相當不錯，甚至高於 7 月的平均水平。所以我們預計 8 月和 9 月的預訂量會很高。這些預訂的短期轉機仍然很重要，這將彌補本季度與 6 月同一時間點的情況。它會有所改善，而這正是我們指南中包含的內容。

The next question will come from John Pitzer with Credit Suisse.

下一個問題將來自瑞士信貸的 John Pitzer。

Steve, you said in your prepared comments that backlog heading into September is down about 8% from the comparable time period heading into the June quarter. But if I go back 90 days ago, you didn't believe that backlog. And at least your initial guidance for June took a fairly significant haircut to kind of the backlog and bookings. I'm just kind of curious, can you help us understand relative to the normal backlog coverage you have to your guide, how does sort of the September guidance look today?

史蒂夫，你在準備好的評論中說，進入 9 月的積壓訂單比進入 6 月季度的可比時期下降了約 8%。但如果我回到 90 天前，你不會相信積壓。至少你對 6 月份的初步指導對積壓和預訂進行了相當大的削減。我只是有點好奇，您能否幫助我們了解相對於您對指南的正常積壓報導，9 月的指南今天看起來如何？

So same thing, John. I think in this pandemic-driven environment, throw all the old graphs away because you will reach a wrong conclusion. If you recall, on April 1, our backlog was quite strong. And the guidance we gave -- I think our backlog, Eric, was it up 9%, do I recall it correctly?

同樣的事情，約翰。我認為在這個大流行驅動的環境中，扔掉所有舊圖表，因為你會得出錯誤的結論。如果您還記得，在 4 月 1 日，我們的積壓工作量非常大。我們給出的指導——埃里克，我認為我們的積壓工作增加了 9%，我沒記錯嗎？

I'd have to go back in a second. I mean our book-to-bill was like 1.17% in the March quarter. And so we entered with very strong backlog, and then we saw weak bookings and...

我必須馬上回去。我的意思是我們在 3 月季度的訂單出貨比約為 1.17%。所以我們帶著非常多的積壓進入，然後我們看到預訂疲軟......

We had a very strong backlog. And we gave guidance -- original guidance, which was actually to be down from 2% to 10% or 2% to 12%. So we basically said that the backlog will deteriorate from being up near 9% to down 6%. This is a reverse quarter where the backlog started lower, and it started 8% lower than April 1. And the midpoint of our guidance is really down -- is down 4%. So this time, we're improving. We are expecting the backlog to improve in comparison to the last quarter. Why? Because last quarter bookings declined during the quarter. This quarter, bookings are increasing during the quarter. And it's all visibility, pandemic, end market-driven, what's happening in automotive, what's happening in data center, what's happening in others. And there is really no correlation to what happened in the last 5 years. So throw all seasonality of the past away.

我們有很多積壓。我們給出了指導——最初的指導，實際上是從 2% 下降到 10% 或 2% 到 12%。所以我們基本上說積壓將從接近 9% 的增長惡化到下降 6%。這是一個反向季度，積壓開始減少，開始時比 4 月 1 日低 8%。我們指導的中點確實下降了——下降了 4%。所以這一次，我們正在改進。與上一季度相比，我們預計積壓情況會有所改善。為什麼？因為上個季度的預訂量在本季度有所下降。本季度，本季度的預訂量在增加。這一切都是可見性、流行病、終端市場驅動的，汽車領域正在發生的事情，數據中心正在發生的事情，以及其他領域正在發生的事情。並且與過去 5 年發生的事情確實沒有關聯。因此，丟掉所有過去的季節性。

That's helpful. But Steve, if I could just add on there. We've all struggled. And I think you guys have internally with all the acquisitions, defining what's normal seasonal. Any update on what you can give us or what you think a normal seasonal September quarter would look like sequentially?

這很有幫助。但是史蒂夫，如果我可以補充一下。我們都掙扎過。而且我認為你們在內部進行了所有收購，定義了正常的季節性。關於你能給我們什麼的任何更新，或者你認為正常的季節性 9 月季度會是什麼樣子？

Well, first, the environment has to become normal. And we haven't seen normal in the last couple of years with all the U.S.-China trade sanctions and then the tariffs and now global pandemic. So once we have to have a stable environment for a year or so to figure out what the new seasonality would be with our acquisitions. Right now, it would be anybody's guess. And whatever the seasonality would be in future right now throw that away.

那麼，首先，環境必須變得正常。在過去的幾年裡，隨著美中貿易制裁、關稅和現在的全球大流行，我們沒有看到正常情況。因此，一旦我們必須擁有一年左右的穩定環境，才能弄清楚我們的收購會出現什麼新的季節性。現在，這將是任何人的猜測。不管未來的季節性如何，現在就把它扔掉。

The next question will come from Ambrish Srivastava with BMO.

下一個問題將來自 BMO 的 Ambrish Srivastava。

Steve, I'm going to ask for a clarification as well. I just want to make sure I understand your comments correctly. So as the last quarter progressed based on what -- how you explained it, it sounds like kind deteriorated because you had a lot of short lead time orders that were not met. And now heading into the September quarter, is it fair to assume that those quarters are now -- those quarter are scrub. But then how to reconcile with the fact that you still had delinquencies that you could not meet. Should they be coming up in this quarter? I'm just a little bit confused on trying to reconcile all your comments on the short lead time orders and the booking trends? That made sense that as the quarter progressed, bookings deteriorated, but then what about the shorter lead time orders that you could not meet in the last quarter?

史蒂夫，我也想要求澄清一下。我只是想確保我正確理解您的評論。因此，隨著上個季度的進展——你如何解釋它，這聽起來有點惡化，因為你有很多未滿足的短交貨期訂單。現在進入 9 月季度，假設這些季度現在是公平的 - 那些季度是擦洗。但是，如何與您仍然無法滿足的拖欠事實相協調。他們應該在這個季度出現嗎？我只是有點困惑，試圖調和您對短交貨期訂單和預訂趨勢的所有評論？這是有道理的，隨著季度的進展，預訂量下降，但那麼您在上個季度無法滿足的更短交貨期訂單呢？

Well, let me see if I can clear some of the confusion. So we started the June quarter with a fairly strong backlog, I recall up 9% or so, and Eric correct that. And then we got reasonable bookings in April. So April was a good month. So it was still looking good. But bookings slowed down significantly in May and then dramatically so in June. So June was even lower than May. And the bookings were so low that if our orders from those bookings were normally aged in terms of near term and outer term, the quarter would have been very low. But the percentage of bookings that aged into the quarter were quite high. And even though we were not able to meet some of the bookings, some of those orders because of shortly timed, we still beat the quarter. From an original guidance of minus 6% at the midpoint, we came in at minus 1.3%, which means we did meet a lot of the orders, but we still left a large and delinquent. And whatever was delinquent last quarter will get shipped this quarter. But since the bookings were so near term, we started the quarter still very much on the whole, down 8% from last quarter.

好吧，讓我看看我是否可以消除一些困惑。因此，我們在 6 月季度開始時積壓了相當多的訂單，我記得增加了 9% 左右，埃里克糾正了這一點。然後我們在四月份得到了合理的預訂。所以四月是個好月份。所以看起來還是不錯的。但預訂量在 5 月份明顯放緩，然後在 6 月份急劇下降。所以六月甚至低於五月。而且預訂量如此之低，以至於如果我們從這些預訂中獲得的訂單通常按近期和遠期期限計算，那麼本季度的訂單量就會非常低。但該季度過期的預訂比例相當高。即使我們無法滿足一些預訂，其中一些訂單由於時間緊迫，我們仍然超過了本季度。從中點的負 6% 的原始指導，我們以負 1.3% 的價格進入，這意味著我們確實滿足了很多訂單，但我們仍然留下了大量拖欠訂單。上個季度拖欠的任何東西都將在本季度發貨。但由於預訂時間如此之近，我們在本季度開始時總體上仍然非常多，比上一季度下降了 8%。

And now the bookings are strengthening, bookings have largely -- the slope of the bookings have been higher. Day after day bookings are increasing all through July. And therefore, the backlog versus the same point in time has improved somewhat, but there is a lot more to go. And we think at the rate the bookings are now and continuing to increase. The shipments will improve from the minus 8% at the start of the quarter to minus 4% at the midpoint that we're guiding to. Does that make sense now?

現在預訂量正在增加，預訂量很大 - 預訂量的斜率更高。整個 7 月，預訂量日復一日地增加。因此，與同一時間點相比，積壓有所改善，但還有很多工作要做。我們認為，按照現在的速度，預訂量會繼續增加。出貨量將從本季度初的負 8% 改善到我們指導的中點的負 4%。現在這有意義嗎？

It does, Steve. If I just could ask one more clarification. Does that mean then that the visibility as you stand today is better than what it was at the same point in the prior quarter?

是的，史蒂夫。如果我能再問一個澄清。這是否意味著您今天所處的能見度優於上一季度同一時間點的能見度？

I don't think visibility is any better. I think visibility is very low that's why it's improved from May and June. But it isn't improved from March and April. I think March and April were very strong bookings. People had -- China had just come back from Chinese New Year, and everybody is expecting a quick end to the pandemic. So there were a lot of bookings. People do want to get quite short. And the pandemic has went longer and longer and longer. And now there is no end inside, nobody knows what's happening. In many states, it's reemerging. Some countries are still going higher every week. So now the customers and distributors are not giving long-term orders. It's slightly better than it was in May and June. As I described, the bookings are higher, and we believe it may continue to improve in August and September.

我不認為能見度會更好。我認為能見度非常低，這就是它從 5 月和 6 月開始有所改善的原因。但與三四月份相比並無改善。我認為 3 月和 4 月的預訂量非常大。人們——中國剛剛過完春節回來，每個人都期待著疫情盡快結束。所以有很多預訂。人們確實想要變得很短。大流行病持續的時間越來越長。現在裡面沒有盡頭，沒有人知道發生了什麼。在許多州，它正在重新出現。一些國家仍然每週都在走高。所以現在客戶和經銷商都沒有給出長期訂單。比5月和6月略好。正如我所描述的，預訂量更高，我們相信它可能會在 8 月和 9 月繼續改善。

I'm just going to add on to what Steve said there, just to confirm that the 9% that he is quoting in terms of our opening backlog entering the June quarter, that is the accurate number for comparison purposes compared to the minus 8% or down 8% heading into the September quarter.

我只是想補充一下史蒂夫在那裡所說的話，只是為了確認他在我們進入 6 月季度的開盤積壓中引用的 9%，與負 8% 相比，這是用於比較目的的準確數字或在進入 9 月季度時下降 8%。

So that's a good comparison where June quarter started up 9%, and September quarter is starting down 8%. And the June quarter deteriorated -- I'm sorry, improved from minus 9% to minus 1.3%. And we believe that this quarter will also improve from -- this quarter will go the other way. It will go from minus 8% to minus 4% that we're guiding to.

所以這是一個很好的比較，其中 6 月季度開始增長 9%，而 9 月季度開始下降 8%。6 月季度惡化——對不起，從負 9% 提高到負 1.3%。而且我們相信本季度也會有所改善 - 本季度將會相反。它將從我們指導的負 8% 到負 4%。

Right. Just to clarify that statement. We entered the June quarter with backlog being up 9%, and it deteriorated to the point where we finished the quarter and down 1.3%.

正確的。只是為了澄清這一說法。我們進入 6 月季度時積壓訂單增加了 9%，並且情況惡化到我們在本季度結束時下降了 1.3%。

Correct.

正確的。

The next question will come from Craig Hettenbach with Morgan Stanley.

下一個問題將來自摩根士丹利的 Craig Hettenbach。

Steve, just a question, just from a geographic perspective. The initial growth was driven by China, and as you mentioned, coming back from China New Year. Do you think some of the China strength is sustainable? And then also, how are you feeling about other geographies, like Europe and North America?

史蒂夫，只是一個問題，只是從地理角度來看。最初的增長是由中國推動的，正如你提到的，從中國新年回來。你認為中國的某些力量是可持續的嗎？然後，您對歐洲和北美等其他地區有何看法？

Ganesh, you want to take that?

Ganesh，你想要那個嗎？

Yes. So China was certainly stronger last quarter than we expected. But China doesn't live in isolation. China is affected by how other parts of the world do. And so as we go into the September quarter, it is still doing well, but we anticipate that weakness in Europe, weakness in Americas would have some impact on China, and that's all baked into the guidance that we have built.

是的。因此，中國上個季度的表現肯定比我們預期的要強勁。但中國並不是孤立存在的。中國受到世界其他地區的影響。因此，當我們進入 9 月季度時，它仍然表現良好，但我們預計歐洲的疲軟、美洲的疲軟會對中國產生一些影響，而這一切都融入了我們制定的指導方針中。

The next question will come from Harsh Kumar with Piper Sandler.

下一個問題將來自 Harsh Kumar 和 Piper Sandler。

Steve, so I'm going to ask about what everybody else is talking about. So it sounds like there's good demand, but sounds like towards the end of last quarter, you saw short-term demand, but now you're seeing the customer pivot completely, and they are starting to place orders. So my question to you, as you guys talked, you guys do a great job. You've got lots of customers. You do a good job keeping up with them. What do you think is making the customer flip in this manner?

史蒂夫，所以我要問一下其他人都在談論什麼。所以聽起來需求很好，但聽起來好像在上個季度末，你看到了短期需求，但現在你看到客戶完全轉向，他們開始下訂單。所以我的問題是，正如你們所說的那樣，你們做得很好。你有很多客戶。你很好地跟上了他們。您認為是什麼讓客戶以這種方式翻轉？

I think it's all COVID-19. Customers are not sure. There is a resurgence of COVID in certain countries and certain states in the United States. Customers and distributors have low backlog from their end customers, and our direct customers are not really sure what the run rate would be. So we're getting frequent orders for short-term delivery that they have the demand today, and they need to build a product to deliver to their customer, but they do not know whether that is sustainable in September, in October, in November. So we're getting -- we're not getting as many longer-term orders to fill the pipeline. But we're getting enough orders to have the strong billings as we go.

我認為這都是 COVID-19。客戶不確定。COVID 在美國的某些國家和某些州捲土重來。客戶和分銷商從他們的最終客戶那裡積壓的訂單很少，而我們的直接客戶並不確定運行率是多少。因此，我們經常收到他們今天有需求的短期交付訂單，他們需要構建一個產品來交付給他們的客戶，但他們不知道這在 9 月、10 月、11 月是否可持續。所以我們得到了——我們沒有得到那麼多的長期訂單來填補管道。但是我們得到了足夠的訂單，可以在我們前進的過程中獲得強勁的賬單。

As we saw last quarter, there was enough strength in short-term orders that the billings was good and we ended fairly good and for all we know that could happen this quarter. But we can't say with certainty today with our backlog being low compared to same point last quarter, we could get enough turn to fill the quarter. But there is lack of visibility, therefore, we can't guide with that certainty.

正如我們在上個季度看到的那樣，短期訂單有足夠的實力，賬單很好，我們結束得相當好，據我們所知，本季度可能會發生這種情況。但是我們今天不能肯定地說，與上個季度的同一點相比，我們的積壓量很低，我們可以得到足夠的機會來填補這個季度。但是缺乏可見性，因此，我們無法確定地進行指導。

Fair enough, Steve. And for my follow-up, your revenues are down quite a bit based on your guidance, but your margin is pretty steady, pretty stable sequentially. Just curious if you have any thoughts on that?

很公平，史蒂夫。對於我的後續行動，根據你的指導，你的收入下降了很多，但你的利潤率相當穩定，連續相當穩定。只是好奇你對此有什麼想法嗎？

Well, so you should look at the results and look at it a little bit year-over-year. So when you look at it year-over-year, will be kind of much more in the pack overall in the semiconductors. And actually, year-over-year guidance for September is better than really most of our microcontroller and analog competitors. So everybody's seasonality is different. Our automotive business is only about -- Ganesh, is it 12% now?

好吧，所以你應該看看結果，並逐年看看。因此，當您逐年查看它時，半導體的整體包裝會更多。實際上，9 月份的同比指導比我們大多數微控制器和模擬競爭對手都要好。所以每個人的季節都不一樣。我們的汽車業務只有——Ganesh，現在是 12% 嗎？

It's probably 13%, 14% after the last quarter.

上個季度之後可能是 13%、14%。

Yes. So our automotive business is about 13%, 14% of our business. And some of our competitors, it's 40%, 45%. So they took a much larger hit when the automotive went down. Automotive was down 40% or so in the industry last quarter. And so they are seeing a much larger recovery. Our business, we're seeing a similar recovery, but being only 13%, 14% of our business, this impact will be lower. So we did better last quarter. This quarter, we're doing worse sequentially. But if you look at year-over-year, our results are better than all of our larger competitors, TI assays and others.

是的。因此，我們的汽車業務約占我們業務的 13%、14%。而我們的一些競爭對手，是 40%、45%。因此，當汽車拋錨時，他們受到的打擊要大得多。上個季度汽車行業下降了 40% 左右。因此，他們看到了更大的複蘇。我們的業務，我們看到了類似的複蘇，但只占我們業務的 13%、14%，這種影響會更低。所以我們上個季度做得更好。本季度，我們的表現更差。但是，如果您逐年查看，我們的結果優於我們所有較大的競爭對手、TI 分析和其他公司。

And as far as the question on the margin is concerned, I mean margin, there have been a lot of moving parts, internalization, more advanced-process technologies, some restructuring of our factories, we have talked about before. So lots of things we have brought to bear, where there's been a tailwind on the margins and this is really the best gross margin and operating margin performance of any cycle at Microchip because driven by all these self-health kind of things we have done. And when this business recovers and goes back to new record on the top line, I think you will see record growth in operating margins.

就利潤率問題而言，我的意思是利潤率，有很多移動部件、國際化、更先進的工藝技術、我們工廠的一些重組，我們之前已經談過。因此，我們承擔了很多事情，利潤率有所下降，這確實是 Microchip 任何週期中最好的毛利率和營業利潤率表現，因為在我們所做的所有這些自我健康類事情的推動下。當這項業務恢復並回到新的最高記錄時，我認為你會看到營業利潤率創紀錄的增長。

The next question will come from Shawn Harrison with Loop Capital.

下一個問題將來自 Loop Capital 的 Shawn Harrison。

Just a quick clarification and then a follow-up. What was the underutilization in the charge this quarter, Eric?

只是快速澄清，然後跟進。埃里克，本季度的費用利用率不足是多少？

The underutilization was about $13.9 million. That's right in line with what it was in the March quarter. So flat sequentially.

未充分利用約為 1390 萬美元。這與 3 月季度的情況一致。順序如此平坦。

And then Steve, to kind of beat the dead horse on the demand environment. But are there end markets where you're seeing sharper contractions in demand? We know automotive production will be up sharply in the September quarter, but where are you seeing maybe a contraction or more volatility in kind of the bookings rate, if you could give an end market perspective, that would be helpful.

然後是史蒂夫，在需求環境上擊敗了死馬。但是，您是否看到終端市場的需求出現更劇烈的收縮？我們知道汽車產量將在 9 月季度急劇上升，但您在哪裡看到預訂率可能會收縮或波動更大，如果您能給出終端市場的觀點，那將會有所幫助。

Ganesh? I'll give it to Ganesh.

像頭神？我會把它交給 Ganesh。

So in my prepared remarks, I gave you some flavor of by different end markets what are we seeing in the June quarter. And I think as time goes on, some of these are going to start reverting to normal, which we think, for example, data center and work-from-home-related items. You don't need to continue to be at a high level once you've gotten past the first several months of buying which you need. And then those that were below in the initial phases, like automotive and industrials, should be the ones that begin to recover. We've already seen the automotive parts put a bottom in the June quarter. And we're expecting September to be good, and we're expecting December to be good. And likewise, in some of the other segments.

因此，在我準備好的發言中，我通過不同的終端市場向您介紹了我們在 6 月季度看到的情況。而且我認為隨著時間的推移，其中一些將開始恢復正常，我們認為，例如，數據中心和在家工作相關的項目。一旦你度過了你需要的最初幾個月的購買，你就不需要繼續處於高水平。然後那些在初始階段處於下方的行業，如汽車和工業，應該是開始復甦的行業。我們已經看到汽車零部件在 6 月季度觸底。我們預計 9 月會很好，我們預計 12 月會很好。同樣，在其他一些細分市場中。

So medical was another example where some parts of medical did really well because of COVID-related items. Other parts -- the elective parts got pushed out because people are not willing to go out of their homes or go set up consults for what was elected. Elective will come back. You can't push it out forever. And so that will be -- in general, I think the places that will recur as time goes on will be the ones that have more strength. And some of the things that were stronger could revert back to normal in the coming months.

所以醫療是另一個例子，醫療的某些部分因為與 COVID 相關的項目而做得非常好。其他部分——選修部分被推遲了，因為人們不願意走出家門或為選出的內容進行諮詢。選課會回來的。你不能永遠把它推出去。所以這將是——總的來說，我認為隨著時間的推移會出現的地方將是那些更有力量的地方。在接下來的幾個月裡，一些更強大的東西可能會恢復正常。

The next question will come from Gary Mobley with Wells Fargo Securities.

下一個問題將來自 Wells Fargo Securities 的 Gary Mobley。

I wanted to start with some questions for Eric. I wanted to ask about OpEx. It looks like for your guidance and what you deliver for the first quarter, you're somewhere just south of $300 million per quarter, that's down, I believe, more than 10% from last year. How much of that is the salary cuts and various other OpEx decreases like lower travel? I'm just trying to get a sense of what oral might look like for you guys on the OpEx side once things begin to turn out?

我想先問埃里克一些問題。我想問一下 OpEx。從你的指導和第一季度的交付情況來看，你每季度大約在 3 億美元左右，我相信，這比去年下降了 10% 以上。其中有多少是減薪和其他各種 OpEx 減少，如減少旅行？我只是想了解一旦事情開始出現，你們在 OpEx 方面的口述會是什麼樣子？

So the salary cuts when at the levels we implemented, we quantified those last quarter as being about a $21 million per quarter run rate that pulled out. And Stephen talked about us giving some of that back to employees this last quarter is because the results were really quite good.

因此，在我們實施的減薪水平上，我們將上個季度的減薪量化為每季度約 2100 萬美元的運行率。斯蒂芬談到我們在上個季度將其中的一些回饋給員工是因為結果確實非常好。

Things like travel, we haven't quantified them, but they are pretty significant. And what I would say with that, I think some of that is probably more permanent than temporary. I think as we've adjusted from working from home throughout the organization in the different functions, people will become very effective in doing that. And I think overall, travel, although it will come back to a higher level, some of that is going to be permanent savings.

像旅行這樣的事情，我們還沒有量化它們，但它們非常重要。我要說的是，我認為其中一些可能比暫時的更永久。我認為，隨著我們在整個組織的不同職能部門從在家工作中調整過來，人們在這方面會變得非常有效。我認為總體而言，旅行雖然會回到更高的水平，但其中一些將成為永久性儲蓄。

So I think we're managing the operating expenses very tightly in the environment that we're in. And the employees are doing a good job of managing that for the environment. But overall, we've taken out a lot of costs. But as the business improves, some of those costs in terms of the salary cuts and some of the bonuses returning to a higher level, they absolutely will come back to the P&L, and we'll manage that appropriately given where top line growth is.

所以我認為我們在我們所處的環境中非常嚴格地管理運營費用。員工在管理環境方面做得很好。但總的來說，我們已經減少了很多成本。但隨著業務的改善，其中一些成本在減薪和一些獎金恢復到更高水平方面，它們絕對會回到損益表中，我們將根據收入增長情況適當地管理它。

Okay. A follow-up I wanted to ask about the debt structure. You guys refinanced and extended the maturity of a pretty hefty amount of your debt. It looks like as a result, your net interest expense, the new norm might be substantially lower. Can you speak to what the new norm may look like for net interest expense and as well, given the low interest rate environment that we're in, what the additional opportunities might be to draw down your cost of capital?

好的。後續我想問一下債務結構。你們再融資並延長了大量債務的期限。結果，您的淨利息支出，新規範可能會大大降低。你能談談淨利息支出的新常態是什麼樣的嗎？此外，鑑於我們所處的低利率環境，還有哪些額外的機會可以降低你的資本成本？

Sure. So we were active in the debt capital markets in the quarter. We issued $2.2 billion of senior secured notes and paid off a bridge loan, paid off some of our converts and then use the remaining funds to pay off amounts over a line of credit. The guidance that you'll see in our guidance table in the press release for other expense, which is most of that is interest expense is about $78 million on a non-GAAP basis for the quarter. And that's a pretty good run rate since all these debt transactions had occurred last quarter and are factored into that guidance. And obviously, we're using a significant amount of the cash that we're generating to pay down debt, everything really beyond the dividend payment.

當然。因此，我們在本季度活躍於債務資本市場。我們發行了 22 億美元的優先擔保票據並還清了過橋貸款，還清了我們的一些轉換者，然後使用剩餘資金通過信用額度償還金額。您將在我們的新聞稿指導表中看到其他費用的指導，其中大部分是本季度的非 GAAP 利息費用約為 7800 萬美元。這是一個相當不錯的運行率，因為所有這些債務交易都發生在上個季度，並被納入該指導。顯然，我們正在使用我們產生的大量現金來償還債務，一切都超出了股息支付。

And so as Steve mentioned in his prepared remarks that in the current quarter, we expect to pay down another $300 million of debt. So that is coming down nicely. We've done some nice things to remove some of the dilution that comes from those convertibles that we've retired from the structure, and we're pretty happy with the transactions that we executed both in the March quarter and the June quarter. And that ongoing run rate is probably about $78 million, and that will reduce as the interest expense comes down through debt repayments.

因此，正如史蒂夫在他準備好的發言中提到的那樣，在本季度，我們預計將再償還 3 億美元的債務。所以這很好。我們做了一些很好的事情來消除我們從結構中退出的那些可轉換債券帶來的稀釋，我們對我們在 3 月季度和 6 月季度執行的交易非常滿意。持續運行率可能約為 7800 萬美元，並且隨著利息支出通過償還債務減少而減少。

(Operator Instructions) The next question will come from Chris Caso with Raymond James.

（操作員說明）下一個問題將來自 Chris Caso 和 Raymond James。

Just a couple of clarifications here. Your revenue guidance is suggesting about a 6% year-on-year decline with all of the puts and takes that we've talked about. Do you think that down 6% a year is an accurate reflection of what your customers' consumption really is? Is that sort of the baseline that we should be using here? And as we look forward into the December quarter, based on what you're seeing in bookings, does that provide you with any degree of confidence that we'd see a sequential increase as we go into December? Or is that just too tough to call given the short nature of the orders that you're receiving now?

這裡只是一些澄清。您的收入指引表明，我們討論過的所有看跌期權均同比下降 6%。您認為每年下降 6% 是否準確反映了客戶的真實消費情況？我們應該在這裡使用那種基線嗎？當我們展望 12 月季度時，根據您在預訂中看到的情況，這是否讓您有信心在進入 12 月時我們會看到環比增長？或者考慮到您現在收到的訂單的短期性質，這是否太難了？

I'll take the first part of that question. I think the revenue based on selling that we report, we also tell you the end-market demand number, which is based on sell-through, they're not that far apart now. Those 2 numbers have come really fairly well together. They were wide apart when we were correcting for inventory 2 years ago. So if we're down 6% in September quarter guidance versus September quarter of last year that basically represents the market demand today. So that was the first part of your question.

我將回答這個問題的第一部分。我認為我們報告的基於銷售的收入，我們還告訴你基於銷售的終端市場需求數字，它們現在相差不遠。這 2 個數字非常好地結合在一起。當我們 2 年前糾正庫存時，它們相距甚遠。因此，如果我們在 9 月季度的指導與去年 9 月季度相比下降 6%，那基本上代表了今天的市場需求。所以這是你問題的第一部分。

The second part was, what do we expect for September? Is that what you're trying to say?

第二部分是，我們對 9 月有何期待？那是你想說的嗎？

Yes. And given the fact it sounded like the orders improved in July, I suppose that some of that's going into the December quarter. But you also mentioned that the order rates were -- the order -- the aging of the orders was very short. So perhaps you're not getting the same visibility you're getting this now that you would in a typical quarter, and perhaps that makes it more difficult to call.

是的。鑑於這聽起來像是 7 月份的訂單有所改善，我想其中一些會進入 12 月季度。但你也提到訂單率 - 訂單 - 訂單的老化時間非常短。因此，也許您現在獲得的知名度與典型季度中的知名度不同，也許這使得打電話變得更加困難。

So I would say, in this kind of environment, we can barely call September. We can't really call December. It will depend on what happens on the COVID situation. Does the vaccine come out, do those fears go away, does everybody go back to work, all factories remain open, schools open. There is a lot of ground to cover between now and October before the December quarter starts. So I would say -- I'm not willing to say much about December yet.

所以我想說，在這種環境下，我們幾乎不能稱之為九月。我們真的不能打電話給 12 月。這將取決於 COVID 情況。疫苗出來了嗎，那些恐懼是否消失了，每個人都回去工作了嗎，所有工廠都開門了，學校開門了嗎？從現在到 12 月季度開始前的 10 月，有很多方面需要考慮。所以我想說——我還不想多說 12 月的事。

The next question will come from Raji Gill with Needham & Company.

下一個問題將來自 Needham & Company 的 Raji Gill。

You might have answered this in the past question, but just to kind of repeat. So as we entered into the June quarter, we saw kind of a dramatic reversal, plus 9% going to minus 1.3%. And as we go into September, we're seeing a reversal in the other direction, going from minus 8% to about minus 4%. And so those reversals, either positive or negative, if you were to sum it up, it's primarily based on just complete lack of visibility that your customers are getting and basically operating on very short lead times?

您可能已經在過去的問題中回答了這個問題，但只是重複一下。因此，當我們進入 6 月季度時，我們看到了一種戲劇性的逆轉，增長 9% 變為負 1.3%。當我們進入 9 月時，我們看到了另一個方向的逆轉，從負 8% 到大約負 4%。那麼這些逆轉，無論是正面的還是負面的，如果你要總結一下，它主要是基於你的客戶完全缺乏可見性並且基本上在非常短的交貨時間內運營？

It's basically there. We serve 6, 7 markets. Every end market is affected differently by COVID-19. Automotive being the worst and industrial being next. And on the other hand, the best market was a data center and medical and some of the work-from-home computing and all that. So each market is affected very differently by COVID-19. And backlog almost by those end markets, how the customers are behaving is quite different. And I think it's really basically all driven by that. So what we are seeing today is the bookings today are not bad to really what we need to ship this week and next week and next week. But we're not getting back in May and June. We were not getting enough bookings for August and September and October.

它基本上在那裡。我們服務於 6、7 個市場。每個終端市場都受到 COVID-19 的不同影響。汽車是最糟糕的，其次是工業。另一方面，最好的市場是數據中心和醫療以及一些在家工作的計算等等。因此，每個市場受到 COVID-19 的影響非常不同。幾乎這些終端市場的積壓，客戶的行為方式大不相同。我認為這基本上都是由它驅動的。所以我們今天看到的是，今天的預訂對於我們本週、下周和下週真正需要運送的貨物來說還不錯。但我們不會在五月和六月回來。我們在 8 月、9 月和 10 月沒有收到足夠的預訂。

So today, we've seen good booking for -- in July, we got good bookings for July, August and September, but not enough yet for the next quarter. So as we proceed in the quarter, especially when we are in August and September, not only we need to get the bookings to fill the August and September there has a role in it, we also got to get enough bookings. So on October 1, we start the next quarter correctly. And December quarter is also front-end loaded usually because December is a short month because of all the holidays. And it's really just COVID-19 is controlling the people's emotions and purchasing managers habits and everything else.

所以今天，我們看到了很好的預訂——7 月份，我們在 7 月、8 月和 9 月得到了很好的預訂，但下一季度的預訂還不夠。因此，當我們在本季度進行時，尤其是在 8 月和 9 月時，我們不僅需要獲得預訂來填補 8 月和 9 月的空缺，我們還必須獲得足夠的預訂。所以在 10 月 1 日，我們正確地開始下一個季度。12 月季度通常也是前端加載的，因為 12 月是一個很短的月份，因為所有的假期。實際上只是 COVID-19 控制著人們的情緒和採購經理的習慣以及其他一切。

And for my follow-up, in terms of the gross margin, so with revenue being down 4% sequentially, gross margins are holding flat sequentially despite revenue declining, even though data center is appearing to kind of revert back to normal patterns. I'll presume data center might be a higher gross margin product. So can you just talk a little bit about the puts and takes in terms of the mix shift that's happening, utilization rates that are happening? Why is margins being flat, which is a good thing despite revenue coming down?

對於我的後續行動，就毛利率而言，由於收入連續下降 4%，儘管收入下降，但毛利率連續持平，儘管數據中心似乎有點恢復正常模式。我假設數據中心可能是毛利率更高的產品。那麼，您能否就正在發生的混合轉變、正在發生的利用率談談看跌期權和接受？為什麼利潤率持平，儘管收入下降但這是一件好事？

So Eric, do you want to take that one?

埃里克，你要不要那個？

Sure. I can. So just maybe start by just reiterating that, we're pretty proud about how the gross margins have held up. And the last couple of years, we've experienced of the various things of China trade and now COVID. And even with our $13.9 million underutilization charge, still posted 61.7% gross margin this last quarter. So there's always things with product mix that impact gross margins, utilization levels and all those things. But we see pretty good stability this quarter. The midpoint of guidance, as you said, is flat sequentially. And we've given a little bit broader range of gross margin guidance than we normally do, between 61.2% and 62.2%, so 1% range there. But we've got a pretty wide range of revenue also that we're guiding to between flat and down 8%. So lots of puts and takes, but we're continuing to do all the right things to keep costs under control, bring things in-house where we can to improve the cost structure and gross margin, I think, is really kind of highlighting this cycle in terms of how well they've been maintained.

當然。我可以。因此，也許從重申這一點開始，我們對毛利率的保持情況感到非常自豪。在過去的幾年裡，我們經歷了中國貿易的各種事情，現在又經歷了 COVID。即使加上我們 1390 萬美元的未充分利用費用，上個季度的毛利率仍為 61.7%。因此，產品組合總是會影響毛利率、利用率水平和所有這些因素。但我們看到本季度相當穩定。正如您所說，指導的中點依次持平。我們給出的毛利率指導範圍比我們通常做的要寬一些，在 61.2% 到 62.2% 之間，所以 1% 的範圍。但我們也有相當廣泛的收入，我們將其指導在持平和下降 8% 之間。如此多的投入和投入，但我們將繼續做所有正確的事情來控製成本，在我們可以改善成本結構和毛利率的地方帶來東西，我認為，這確實是在強調這一點根據它們的維護情況循環。

The next question will come from William Stein with Forest Securities (sic) [SunTrust].

下一個問題將來自 Forest Securities (sic) [SunTrust] 的 William Stein。

Steve, in the press release and in the comments that you made in your prepared remarks today, you seem to attribute the slower pace of bookings, at least partly to resurgence in COVID. And I think what some investors are concerned about is that instead, the slowdown may be related to customers having over ordered in the recent past, Microchip's delivery gets that and then customers have to digest it. Meanwhile, you seem to have had some pretty deep conversations with customers to figure out sort of end-market expectations for the full year. So I'm wondering if perhaps do you have a sense from those discussions, what customer inventory levels are like now? It seems to me if they're ordering on very short lead times, they're probably ordering for production and not for safety stock, but any insight in this regard would really helpful.

史蒂夫，在新聞稿和你今天準備好的評論中發表的評論中，你似乎將預訂速度放緩歸因於 COVID 的複蘇，至少部分原因是。而且我認為一些投資者擔心的是，相反，放緩可能與客戶最近訂購過多有關，Microchip 的交貨得到了，然後客戶必須消化它。與此同時，您似乎與客戶進行了一些非常深入的對話，以弄清楚全年的終端市場預期。所以我想知道您是否從這些討論中了解到，現在的客戶庫存水平如何？在我看來，如果他們在非常短的交貨時間內訂購，他們可能會訂購生產而不是安全庫存，但在這方面的任何見解都會非常有幫助。

Well, we are -- we do business with 120,000 customers and long-tail well over 100,000 of them buy from hundreds of our distributors around the world. We're not aware of any broad-based holding of inventory by our customers, and our distributor inventories are still in the range of being 15-year lows. With, again, 120,000-plus end customers, we're really not able to assess the inventory situation in each one of our customers, but we have a generally good sense of the inventory in the market. We've done a good job of keeping our lead time short and maintaining our delivery performance at a reasonable level. If the customers were -- had hold inventory in the prior quarter or so, we wouldn't be getting so many short-term requests. And in some cases, customers are paying expedite charge to get those parts. And there's no reason customers will be paying expedite charges to get the parts if they didn't need them for production. And in many cases, we are delivering right on the factory floor. They are short-circuiting shipment methods and, hey, drop it on my floor because there are lines-down situation. So if anything, inventory is not high out there, inventory is low.

好吧，我們是——我們與 120,000 名客戶開展業務，其中超過 100,000 名長尾客戶從我們全球數百家分銷商處購買產品。我們不知道我們的客戶有任何廣泛的庫存持有，我們的分銷商庫存仍處於 15 年低點的範圍內。同樣，我們有 120,000 多個終端客戶，我們真的無法評估每個客戶的庫存情況，但我們對市場庫存有一個總體的了解。我們在縮短交貨時間和將交付績效保持在合理水平方面做得很好。如果客戶在上一季度左右持有庫存，我們就不會收到那麼多的短期請求。在某些情況下，客戶需要支付加急費用才能獲得這些零件。如果客戶不需要零件進行生產，他們沒有理由支付加急費用來獲得零件。在許多情況下，我們直接在工廠車間交付。他們是短路運輸方式，嘿，把它放在我的地板上，因為有線路中斷的情況。因此，如果有的話，那裡的庫存並不高，庫存很低。

The next question will come from Chris Daneley with Citigroup.

下一個問題將來自花旗集團的 Chris Daneley。

Just a quick one. Can you give us approximately what percentage of revenue goes through China and how that's done over the last few quarters?

只是一個快速的。您能告訴我們大約有多少百分比的收入來自中國，以及過去幾個季度是如何完成的嗎？

Eric, do you have that?

埃里克，你有嗎？

Yes. So a 21%, 22% of our revenue ships into China. And obviously, there's some of that that's local consumption and some of that comes back to the Americas or Europe for consumption, but it's in that 21%, 22% range.

是的。因此，我們有 21%、22% 的收入運往中國。顯然，其中一些是本地消費，一些回到美洲或歐洲消費，但在 21%、22% 的範圍內。

So Chris, the June quarter -- in the June quarter, the China revenue snapped back to higher levels as the COVID-19 situation improved in China, and business activities supporting local consumption appear to be much more normal in China.

因此，克里斯，六月季度——在六月季度，隨著中國 COVID-19 形勢的改善，中國收入迅速回升至更高水平，支持本地消費的商業活動在中國似乎更加正常。

The next question will come from Harlan Sur with JPMorgan.

下一個問題將來自摩根大通的 Harlan Sur。

In response to the muted demand environment back in the June quarter, you guys did cut back the number of manufacturing hours for your fab employees in your 2 U.S. fabs. I think it was -- it went from like 11 -- it went from like a 13-week work week -- work quarter to like an 11-week work quarter. With the demand trends being muted, are you guys continuing to drive an 11-week manufacturing work quarter? Or are you guys taking down work hours and utilizations further here in the September quarter? And then just as a follow-up, it looks like Philippines is reimposing some of the regional lockdowns and a resurgence of COVID-19. Is this having an impact on the Philippines test operations?

為了應對 6 月季度疲軟的需求環境，你們確實減少了 2 個美國晶圓廠的晶圓廠員工的製造時間。我認為它是——它從大約 11 週——從大約 13 週的工作週——工作季度變成了大約 11 週的工作季度。隨著需求趨勢減弱，你們是否繼續推動為期 11 週的製造業工作季度？或者你們是否在 9 月季度進一步減少工作時間和利用率？然後作為後續行動，菲律賓似乎正在重新實施一些區域封鎖和 COVID-19 的死灰復燃。這對菲律賓的測試操作有影響嗎？

So I'll take that first part of the question. I think you may have missed the commentary earlier, but I did say in my remarks that actually our inventory last quarter came down to 117 days from the 120 days before. Remember, we went into the quarter guiding to be down minus 6%. So if we were down minus 6%, our inventory would have gone up, which we did not want. So we put the rotating time off in the factory, at least in the 2 largest fabs to really have operators take some time off. And so we did better in revenue with only being down minus 1.3%, and we cut back on the production. So the combined effect of that was our inventory actually came down.

所以我將回答問題的第一部分。我想你可能錯過了之前的評論，但我在評論中確實說過，實際上我們上個季度的庫存從之前的 120 天下降到 117 天。請記住，我們進入本季度的指導目標是下降 -6%。因此，如果我們下降了 -6%，我們的庫存就會上升，這是我們不希望的。因此，我們將工廠的輪換時間放假，至少在 2 個最大的晶圓廠中，真正讓操作員休假。因此，我們的收入表現更好，僅下降了-1.3%，並且我們削減了產量。因此，綜合影響我們的庫存實際上下降了。

So with the 117 days inventory, we have now adjusted the factory schedule where we're no longer working the rotating time off in those 2 large fabs. There are lots of small, small plants we inherited from Microsemi around the world, in Boston, in Ireland, in Germany and other places, those are all small labs, and each one has their own schedule. Some of them are working short weeks because demand on certain products is weak. But the big plants are no longer working short hours.

因此，有了 117 天的庫存，我們現在已經調整了工廠時間表，我們不再在這兩個大型晶圓廠中輪休。我們在世界各地從美高森美那裡繼承了很多很小很小的工廠，在波士頓，在愛爾蘭，在德國和其他地方，那些都是小實驗室，每個都有自己的時間表。由於對某些產品的需求疲軟，他們中的一些人每週工作很短。但大型工廠不再工作時間短。

And second part of your question was the Philippines. Ganesh, you want to take that one?

你問題的第二部分是菲律賓。Ganesh，你想要那個嗎？

Yes. So we did -- we are aware of the adjustments Philippines is making. What we have not given you much color on is, at the May conference call, I mentioned that we've had people who are effectively living in the Philippines factory, who run our operations there for a significant portion of certainly, March and April. And at its peak, we had about 850 employees living in our factory to be able to work around the constraints. It has come down since then. We still maintain a force of about 300 people that are there. It gives us that strategic flexibility on any short-term constraints. And so we have planned for where this might go and what other actions may be taken. And we are not -- unless something different happens with what we expect is likely to happen, we feel we have the control and what we need to do for keeping Philippines run.

是的。所以我們做到了——我們知道菲律賓正在做出的調整。我們沒有給你太多顏色的是，在 5 月的電話會議上，我提到我們有一些人實際上住在菲律賓的工廠裡，他們在 3 月和 4 月的大部分時間裡在那裡經營我們的業務。在鼎盛時期，我們有大約 850 名員工住在我們的工廠裡，以便能夠克服這些限制。從那以後它已經下降了。我們仍然保持著大約 300 人的力量。它為我們提供了針對任何短期限制的戰略靈活性。因此，我們已經計劃了這可能發生的情況以及可能採取的其他行動。我們不是——除非發生與我們預期可能發生的事情不同的事情，我們覺得我們有控制權，我們需要做些什麼來保持菲律賓的運轉。

The next question will come from Vijay Rakesh with Mizuho.

下一個問題將來自瑞穗的 Vijay Rakesh。

Good execution in a tough environment. Just wondering on your September quarter guide for down 4 of the midpoint, are you seeing any particular weakness in you look by segment is are you seeing storage, the computer data center being a little bit more weaker or industrial? If you give some more color there?

在艱難的環境中表現出色。只是想知道您的 9 月季度指南中點下降 4，您是否看到按細分市場看的任何特別弱點是您看到存儲，計算機數據中心更弱還是工業？如果你給那裡更多的顏色？

So Ganesh, we answered that question before, but go ahead, take it again.

所以 Ganesh，我們之前回答過這個問題，但是繼續，再問一遍。

So as I mentioned, some of the segments that were strong in the June quarter were driven by the work from home and medical type of activities, which had very short surge of demand that was acquired. That's what had us running in the June quarter to try and catch up with a lot of new orders that came in as well. We are anticipating and the trends we're seeing is some of that surge subsides and demand begins to revert back to normal at that point in time. So in that sense, I wouldn't call it weak demand, but I would call it, it doesn't have the surge that the June quarter had required as you continue to go long in time. And likewise, on the opposite side, some of the things that were really weak, automotive being one example of that, also begins to correct in the opposite direction where it begins to make up for some of that weakness as factories run, as demand returns and that product business gets stronger.

因此，正如我所提到的，6 月季度表現強勁的一些細分市場是由在家工作和醫療類型的活動推動的，這些活動的需求激增非常短暫。這就是我們在 6 月季度運行的原因，試圖趕上大量新訂單。我們預計，我們看到的趨勢是在那個時間點激增消退，需求開始恢復正常。因此，從這個意義上說，我不會稱之為需求疲軟，但我會稱之為，隨著時間的推移，它沒有 6 月季度所需的激增。同樣，在另一方面，一些真正疲軟的東西，汽車就是一個例子，也開始朝相反的方向糾正，隨著工廠的運行，隨著需求的恢復，它開始彌補一些弱點並且該產品業務變得更強大。

Got it. And I know you've mentioned not able to meet all the demand coming through, given the short-term nature of these orders, spurt of orders, I guess. Do you see any risk of losing orders or losing share? Or just wondering if that's part of it or is it just limited visibility on the part of the customers?

知道了。而且我知道你已經提到無法滿足所有需求，因為這些訂單的短期性質，我猜是訂單的激增。您是否看到任何失去訂單或失去份額的風險？或者只是想知道這是否是其中的一部分，或者只是客戶的可見性有限？

These are all proprietary products. These aren't product that you switch overnight and go between sources and all that, so no. We don't see any risk of losing share in what's going on. And as we have said, we're working constructively with our customers to be -- to try and get the best visibility they have to us as well and to be able to serve them in order to meet their demand requirements. And so these are short-term issues caused by the demand and supply shocks in the system, I don't expect these to be long-term issues.

這些都是專有產品。這些不是您在一夜之間切換並在來源之間切換的產品，所以不是。我們沒有看到任何失去對正在發生的事情的份額的風險。正如我們所說，我們正在與我們的客戶建設性地合作——努力讓他們對我們也有最好的了解，並能夠為他們提供服務，以滿足他們的需求。所以這些都是系統供需衝擊造成的短期問題，我不認為這些是長期問題。

The next question will come from Christopher Rolland with Susquehanna.

下一個問題將來自 Christopher Rolland 和 Susquehanna。

This one's really for Steve. Switching gears, we now have ADI acquiring Maxim. Do you see this changing anything for the analog market? And what are your feelings generally on consolidation? Do you expect it to continue at this pace or even accelerate during COVID? And if you had a view of valuations for targets in the industry right now, that would be appreciated as well.

這個真的是給史蒂夫的。切換齒輪，我們現在有 ADI 收購 Maxim。您認為這會改變模擬市場嗎？您對整合總體上有何看法？您是否希望它在 COVID 期間繼續保持這種速度甚至加速？如果您現在對行業目標的估值有一個看法，那也將不勝感激。

Okay. Well, thanks for the question. I mean we ourselves do not see any threat from the proposed acquisition of Maxim by ADI. They are both strong competitors in the analog space, and we compete against both of them on a regular basis. And when they get combined -- anytime an acquisition happens, we always see incremental opportunities arise because sometimes the customer wants 2 defense sources or do on all their business with ADI and Maxim as they become one. So some opportunities appear that we'll be able to take advantage of it.

好的。好吧，謝謝你的提問。我的意思是，我們自己沒有看到 ADI 擬收購 Maxim 的任何威脅。他們都是模擬領域的強大競爭對手，我們經常與他們競爭。當它們合併時——無論何時發生收購，我們總是會看到增量機會出現，因為有時客戶需要 2 個防禦資源，或者在 ADI 和 Maxim 成為一個時與他們開展所有業務。所以一些機會出現了，我們將能夠利用它。

In terms of the merger environment, it really -- it looks at times that it could slow down. And if large acquirers are digesting. At one time, look like it will be difficult to get approvals from China. But then we got a flurry of approvals. Marvell got approved. IDT got approved. The Mellanox got approved. And now it is Maxim, and Cyprus got approved. So if China continues to approve these deals and the still acquirers who are willing to acquire then the consolidation in the industry would continue. I think that's really for sure.

就合併環境而言，它確實 - 它有時看起來可能會放緩。如果大型收購方正在消化。一方面，看起來很難獲得中國的批准。但隨後我們得到了一連串的批准。Marvell 獲得批准。IDT 獲得批准。Mellanox 獲得批准。現在是馬克西姆，塞浦路斯獲得批准。因此，如果中國繼續批准這些交易，並且仍然有願意收購的收購方，那麼該行業的整合將繼續。我認為這是肯定的。

And the fundamental issue is, if you look at over a long period of time, over the last 20 years, the overall growth of the semiconductor industry has been low to mid-single digits, and that's a tough environment to operate in. Every year, people get excited about one thing or the other, but all these various trends have come in, but a consolidated long-term industry has struggled. And any time an industry struggles on the top line, then the stronger will acquire, the weaker and consolidation will continue. So that's really my view on consolidation.

根本的問題是，如果你從很長一段時間來看，在過去的 20 年裡，半導體行業的整體增長一直處於低至中等個位數的水平，這是一個艱難的經營環境。每年，人們都會對一件事或另一件事感到興奮，但所有這些不同的趨勢都已經出現，但一個長期整合的行業卻在掙扎。每當一個行業在頂線掙扎時，強者將收購，弱者將繼續整合。所以這真的是我對整合的看法。

As far as valuation question is concerned, I mean look at the valuation Cyprus went for and Maxim went for, it just kind of keeps going higher and higher. And I think for most targets, the remaining targets, their stock price already reflects a significant acquisition premium. But you wouldn't convince their boards and their management that the acquisition premium is in there, and that's what drives a very, very high valuation. So that's a problem.

就估值問題而言，我的意思是看看塞浦路斯和馬克西姆的估值，它只是越來越高。而且我認為對於大多數目標，其餘目標，他們的股價已經反映出顯著的收購溢價。但你不會說服他們的董事會和管理層相信收購溢價就在那裡，而這正是推動非常非常高估值的原因。所以這是個問題。

The next question will come from David O'Connor with Exane BNP Paribas.

下一個問題將來自 Exane BNP Paribas 的 David O'Connor。

Maybe just a quick follow-up from a previous question. Steve, can you just remind us what the order mix is? What percentage of orders are typically short lead time versus long lead time, both historically versus currently? And I've one quick follow-up.

也許只是對上一個問題的快速跟進。史蒂夫，你能提醒我們訂單組合是什麼嗎？訂單的百分比通常是短交貨期還是長交貨期，無論是過去還是現在？我有一個快速跟進。

We don't have that numeric, and I don't think we would be willing to share it. It changes a lot week-to-week and month-to-month. And it's a very fluid situation when you're working with hundreds of distributors and 120,000-plus customers. So we wouldn't share that indicator.

我們沒有那個數字，我認為我們不會願意分享它。它每周和每月都有很大變化。當您與數百個分銷商和 120,000 多個客戶合作時，情況非常不穩定。所以我們不會共享該指標。

Okay. Fair enough. And as my follow-on. Last quarter, the -- you said with the U.S. Department of Commerce export ruling, it should be pretty much straightforward for you guys. You called out, I think, military maybe some attention there. Was there anything that popped up from the implementation that you went through that was unexpected?

好的。很公平。作為我的後續。上個季度，你說美國商務部的出口裁決對你們來說應該非常簡單。我想，您大聲疾呼，軍方可能會引起注意。在您經歷的實施過程中，有沒有出現什麼出乎意料的情況？

Ganesh, do you want to take that one?

Ganesh，你想要那個嗎？

Yes. No, there were no issues. There was obviously administrative procedures that need to put in place or have our partners put in place. And so all of that is done and behind us.

是的。不，沒有問題。顯然有一些行政程序需要到位或讓我們的合作夥伴到位。因此，所有這些都已完成並在我們身後。

Next question will come from Craig Ellis with B. Riley FBR.

下一個問題將來自 Craig Ellis 和 B. Riley FBR。

Nice job on the execution in the quarter. Steve, I wanted to ask a question. I'll start with you and may ultimately go to Ganesh. But clearly, the company has executed a number of things tactically with COGS management and OpEx management to really protect margin leverage at historically high levels through last year's and now this year's crises. The question is, as we look ahead and think about things that the company might be doing that are those ongoing continuous efforts to drive structural improvement in both, COGS and OpEx versus some of the things that will have some unwind employees going back to full salaries eventually as demand normalizes. How do we think about the gives and takes there? And maybe Ganesh, if you can just list for us what some of the key longer-term drivers for costs reduction and OpEx optimization are, that would be helpful.

本季度的執行工作做得很好。史蒂夫，我想問一個問題。我將從你開始，最終可能會去 Ganesh。但很明顯，該公司已經通過 COGS 管理和 OpEx 管理在戰術上執行了一些事情，以在去年和今年的危機中真正保護利潤率處於歷史高位。問題是，當我們展望未來並思考公司可能正在做的事情時，這些事情是那些持續不斷的努力來推動 COGS 和 OpEx 的結構改進，而不是一些會讓一些放鬆的員工回到全薪的事情最終隨著需求正常化。我們如何看待那裡的付出和索取？也許 Ganesh，如果你能為我們列出一些降低成本和優化 OpEx 的關鍵長期驅動因素，那將很有幫助。

Go ahead, Ganesh, if you want to take that.

去吧，Ganesh，如果你想接受它。

So obviously, there are some costs that are short-term costs that we have taken out, you've listed many of them, Eric commented on one by one. And as we see revenue return, you should expect that some of those costs will come back. And historically, we have been disciplined about how we bring back some of these costs as revenue returns. And you can go back and look at other cycles in terms of how -- as a percentage of revenue, we manage our operating expenses.

所以很明顯，有一些成本是我們已經拿出來的短期成本，你已經列出了很多，Eric 一一評論道。當我們看到收入回報時，您應該期望其中一些成本會回來。從歷史上看，我們一直對如何將這些成本中的一部分作為收入回報收回來進行紀律處分。你可以回頭看看其他週期——我們如何管理我們的運營費用佔收入的百分比。

I think one thing which we will do different as we come out of this is also look at what have we learned out of this crisis in terms of managing more effectively from an operating expense standpoint. And there, we will get into changes in methodology, Eric mentioned to perhaps travel not being as at high rate as we used to switching to more virtual methods for customer training and a number of other things as well.

我認為，當我們走出這一步時，我們會做的一件事是，從運營費用的角度來看，我們從這場危機中學到了什麼，可以更有效地管理。在那裡，我們將改變方法，埃里克提到，旅行的頻率可能不像我們過去那樣高，而是轉向更多的虛擬方法來進行客戶培訓和其他一些事情。

And so we are committed to the long-term targets we have, which is to get operating expenses down into the 23% range. That's part of our 40.5% operating margin target that we're working towards. And every bit and every quarter, we learn things we can do more effectively, whether it's in research and development, in sales and marketing or in the overall general and administrative areas that sequentially brings things a bit by bit down. We have been working on the last bit of the integration for Microsemi, which is predominantly, at this point, focused on the business process and IT-related items. We're about 9 months away from wrapping that up as the last bits of those get done. So there is constant part of our DNA that is working on these -- in all 3 areas. And in a crisis, you take some of the best learnings and make sure you capture them when you get past the crisis.

因此，我們致力於實現我們的長期目標，即將運營費用降低到 23% 的範圍內。這是我們正在努力實現的 40.5% 營業利潤率目標的一部分。每時每刻，我們都在學習可以更有效地做的事情，無論是在研發、銷售和營銷領域，還是在整體的一般和行政領域，這些領域都會逐步降低水平。我們一直致力於 Microsemi 的最後一點集成，目前主要集中在業務流程和 IT 相關項目上。我們還有大約 9 個月的時間才能完成最後的工作。因此，我們的 DNA 中始終有一部分在處理這些問題——在所有 3 個領域。在危機中，你會吸取一些最好的經驗教訓，並確保在度過危機後抓住它們。

The next question will come from John Pitzer with Crédit Suisse.

下一個問題將來自 Crédit Suisse 的 John Pitzer。

Ganesh, you had mentioned in the prepared comments that you thought FPGAs would be up pretty significantly in the September quarter. I'm just kind of curious, is that a business that's more exposed to the auto market? And so what we're seeing is weak June and auto to strong June and September, and that's driving it? Are there other drivers there? There are, can you kind of enumerate, please?

Ganesh，您在準備好的評論中提到，您認為 FPGA 在 9 月季度會大幅增長。我只是有點好奇，這是一家更容易接觸汽車市場的企業嗎？所以我們看到的是 6 月疲軟和汽車業到 6 月和 9 月強勁，這是推動它的嗎？那裡還有其他司機嗎？有，你能列舉一下嗎？

So exposure to automotive for the FPGA business is low at this point. It's one of the things that Microchip brought to that business with our historical strengths in terms of how we take advantage of each other's end-market strength. So it's other parts of the market that are responding and providing growth in the September quarter. And even as we expect that was one large customer that created a down -- a lower revenue in the June quarter, we don't expect they're going to recover in the September quarter. In spite of that, we expect that the other improvements we're making in business will more than offset for that in the September quarter. But it's not automotive.

因此，此時 FPGA 業務在汽車領域的曝光率很低。就我們如何利用彼此的終端市場優勢而言，這是 Microchip 憑藉我們的歷史優勢為該業務帶來的優勢之一。因此，市場的其他部分正在響應並在 9 月季度提供增長。即使我們預計是一個大客戶造成了 6 月季度收入下降，但我們預計他們不會在 9 月季度恢復。儘管如此，我們預計我們在業務方面所做的其他改進將足以抵消 9 月季度的改進。但它不是汽車。

I'll now turn the conference back over to Steve Sanghi for any closing remarks.

我現在將會議轉回給 Steve Sanghi 作閉幕詞。

So there is one other indicator I wanted to give you. We haven't planned on it, but I think with all the questions we got in -- how the bookings happened in last quarter versus what's happening in this quarter. I'm going to go on the little and give you this number. The July bookings were 15.5% higher than the May bookings per day -- based on per day. Every month is not the same. There are minor differences. And July, bookings were 36.6% higher per day than the June bookings. So you could see how last quarter, bookings were decreasing in May and then really fell precipitously in June, but the bookings were very short-term-oriented. So we made the code actually beat the guidance in the quarter last quarter, but it started this quarter in a whole. But now this quarter, July bookings were 15.5% better than May and 36.6% better than June, that's why we have a confidence that even though we started minus 8%, we're going to end up a lot better. Hopefully, that helps a little bit.

所以我想給你另一個指標。我們還沒有計劃，但我認為我們遇到了所有問題——上個季度的預訂情況與本季度的情況相比如何。我要繼續下去，給你這個號碼。7 月份的預訂量比 5 月份的每天預訂量高 15.5%（按天計算）。每個月都不一樣。有細微差別。而 7 月，每天的預訂量比 6 月高出 36.6%。所以你可以看到上個季度，5 月份的預訂量是如何減少的，然後在 6 月份真的急劇下降，但這些預訂都是非常短期的。所以我們在上個季度使代碼實際上超過了指導，但它從整個季度開始。但現在這個季度，7 月的預訂量比 5 月高 15.5%，比 6 月高 36.6%，這就是為什麼我們有信心，即使我們開始時為負 8%，我們最終也會好得多。希望這能有所幫助。

With that, we'll be attending a number of virtual conferences in the coming days and weeks. And so we'll talk to some of you in those conferences. Thank you very much.

有了這個，我們將在未來幾天和幾週內參加一些虛擬會議。因此，我們將在這些會議上與你們中的一些人交談。非常感謝。

Thank you. Ladies and gentlemen, this concludes today's event. You may now disconnect your lines. Enjoy the rest of your day.

謝謝。女士們，先生們，今天的活動到此結束。您現在可以斷開線路。享受你剩下的一天。