微晶片科技 (MCHP) 2011 Q1 法說會逐字稿

Good day, everyone. Welcome to this Microchip Technology first quarter and fiscal year 2011 earnings results conference call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Microchip's Chief Financial Officer, Mr. Eric Bjornholt. Please go ahead, sir.

今天是個好日子。歡迎參加 Microchip Technology 2011 年第一季及財年財報電話會議。提醒一下，今天的通話正在錄音。現在，我想將電話轉給 Microchip 財務長 Eric Bjornholt 先生。請繼續，先生。

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 release 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. In attendance with me today are Steve Sanghi, Microchip's President and CEO; Ganesh Moorthy, Microchip's COO; and Gordon Parnell, Vice President Business Development and Investor Relations. I will comment on our first quarter fiscal year 2011 financial performance, and Steve and Ganesh will then give their comments on the results, discuss the current business environment, and discuss our guidance. We will then be available to respond to specific investor and analyst questions.

大家下午好。在本次電話會議期間，我們將就公司未來事件或未來財務表現做出預測和其他前瞻性陳述。我們希望提醒您，此類陳述僅為預測，實際事件或結果可能會有重大差異。我們建議您參閱今天的新聞稿以及我們最近向 SEC 提交的文件，其中確定了可能影響 Microchip 業務和營運績效的重要風險因素。今天與我一起出席的有 Microchip 總裁兼執行長 Steve Sanghi； Ganesh Moorthy，Microchip 營運長；戈登‧帕內爾 (Gordon Parnell)，業務發展與投資者關係副總裁。我將評論我們 2011 財年第一季的財務業績，然後 Steve 和 Ganesh 將對結果發表評論，討論當前的商業環境，並討論我們的指導。然後我們將可以回答具體的投資者和分析師的問題。

For today's discussion, I will first present the results for Microchip excluding SST, followed by SST's continuing operations, and finally for the combined Microchip and SST continuing operations. We are including information on our press release on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on our Investor Relations page of our website at Www.microchip.com, which we believe you will find useful when comparing GAAP and non-cash GAAP results. We will now go through some of the operating results for the June quarter. I will be referring to gross margin and operating expense information on a non-GAAP basis prior to the effects of share based compensation and acquisition related expenses.

在今天的討論中，我將首先介紹 Microchip 不包括 SST 的結果，然後介紹 SST 的持續經營業務，最後介紹 Microchip 和 SST 合併後的持續經營業務。我們在新聞稿中包含了有關各種公認會計原則和非公認會計原則措施的資訊。我們已在網站 Www.microchip.com 的投資者關係頁面上發布了完整的 GAAP 與非 GAAP 調整表，我們相信您在比較 GAAP 和非現金 GAAP 結果時會發現它很有用。我們現在將了解六月季度的一些營運表現。我將指的是股權激勵和收購相關費用影響之前的非公認會計準則基礎上的毛利率和營運費用資訊。

For Microchip excluding SST, net sales were a record $302.4 million, exceeding our $300 million revenue guidance for the quarter, and were up approximately 8.8% from net sales of $278 million in the immediately preceding quarter and were up 56.7% from net sales of $192.9 million in the June 2009 quarter. Excluding SST, Microchip's non-GAAP net income for the first quarter of fiscal year 2011 was $96 million or a record $0.51 per diluted share, an increase of 10.7% from non-GAAP net income of $86.7 million or $0.46 per diluted share in the immediately preceding quarter. Gross margins for Microchip excluding SST were a record 62% in the June quarter compared to 61.6% in the March quarter. The increase in gross profit margin was driven by a variety of factors, including higher production activity in our factories and continued cost reduction efforts from our global manufacturing operations. With the increase in revenue in the June quarter and our continued focus on prudent spending, we were able to achieve operating leverage from the business with total operating expenses of 25% of sales for Microchip excluding SST, and non-GAAP operating income was a record 37%.

對於Microchip（不包括SST），淨銷售額達到創紀錄的3.024 億美元，超出了我們本季3 億美元的收入指導，比上一季的淨銷售額2.78 億美元增長了約8.8%，比上一季的淨銷售額192.9 美元增長了56.7% 2009 年 6 月季度的收入為 100 萬美元。不包括SST，Microchip 2011 財年第一季的非GAAP 淨利為9,600 萬美元，即創紀錄的每股攤薄收益0.51 美元，較上一季的非GAAP 淨利8,670 萬美元，即稀釋每股收益0.46 美元成長了10.7%上一季。 Microchip 不計銷售及服務的毛利率在 6 月季度達到創紀錄的 62%，而 3 月季度為 61.6%。毛利率的成長是由多種因素推動的，包括我們工廠生產活動的增加以及我們全球製造業務持續降低成本的努力。隨著六月季度收入的成長以及我們對審慎支出的持續關注，我們能夠從業務中實現營運槓桿，總營運支出佔 Microchip 銷售額的 25%（不包括 SST），並且非 GAAP 營運收入創歷史新高37%。

SST's continuing operations produced net sales of $18.4 million, which was above our quarterly guidance of $18 million. In the June quarter, the SST continuing operations produced non-GAAP gross margins of 90% and non-GAAP net income of $8.3 million or $0.04 per diluted share. For Microchip and SST continuing operations combined, net sales for the September quarter were a record $320.8 million, up approximately 15.4% from net sales of $278 million in the immediately preceding quarter and up 66.3% from net sales of $192.9 million in the June 2009 quarter.

SST 的持續營運產生了 1,840 萬美元的淨銷售額，高於我們 1,800 萬美元的季度指引。在第二季度，SST 持續經營業務的非 GAAP 毛利率為 90%，非 GAAP 淨利潤為 830 萬美元，即稀釋後每股收益 0.04 美元。對於Microchip 和SST 持續營運業務的合計，9 月季度的淨銷售額達到創紀錄的3.208 億美元，比上一季的淨銷售額2.78 億美元增長約15.4%，比2009 年6 月季度的淨銷售額額1.929 億美元成長66.3% 。

On a geographic basis, revenue in the Americas was up 8.6% sequentially, Europe was up 2.7%, and Asia was up 25.4%. All geographies were in line with their expectations for the quarter and delivered growth above normal seasonality. Asia continues to be our largest geographic region, representing 53.9% of sales in the June quarter. The Americas were 22.6% of sales and Europe was 23.5% of sales. These measurements are based on where the product was delivered for manufacturing purposes for our customers, but does not necessarily represent where the design activity is taking place or where the end product consumption is occurring. The combined gross margins for Microchip and SST's continuing operations were an outstanding 63.6% and at the high end of our previous guidance.

從地理來看，美洲的營收季增 8.6%，歐洲成長 2.7%，亞洲成長 25.4%。所有地區都符合他們對本季的預期，並實現了高於正常季節性的成長。亞洲仍然是我們最大的地理區域，佔第二季銷售額的 53.9%。美洲佔銷售額的 22.6%，歐洲佔銷售額的 23.5%。這些測量是基於產品交付給我們的客戶進行製造的地點，但不一定代表設計活動發生的地點或最終產品消費發生的地點。 Microchip 和 SST 持續經營業務的綜合毛利率高達 63.6%，處於我們先前指導的最高水準。

Total consolidated operating expenses from continuing operations were 25.7%. This compares to our combined Company guidance for the June quarter of 26.6%. Research and development costs were $35.5 million, representing 11.1% of sales. Sales and general administrative expenses were $46.9 million, representing 14.6% of sales. The Microchip and SST continuing operations produced consolidated non-GAAP operating income of 37.9%. Combined Company non-GAAP net income was $104.2 million or $0.55 per diluted share compared with our June quarter guidance of $0.52 per share. The after-tax impact on continuing operations in the June 2010 quarterly earnings that have been excluded from our non-GAAP results include $8.3 million in share based compensation expense, $1 million in non-cash interest expense associated with our convertible debt, and $4.9 million in charges associated with our acquisition activities. The acquisition related charges include the sell-through of purchased inventory costs, amortization of intangible assets, and acquisition related expenses.

持續經營業務的綜合營運費用總額為 25.7%。相比之下，我們六月季度的公司綜合指導為 26.6%。研發成本為 3,550 萬美元，佔銷售額的 11.1%。銷售和一般管理費用為 4,690 萬美元，佔銷售額的 14.6%。 Microchip 和 SST 的持續經營業務產生了 37.9% 的綜合非 GAAP 營業收入。合併後的公司非 GAAP 淨利潤為 1.042 億美元，即稀釋後每股收益 0.55 美元，而我們 6 月季度指引為每股 0.52 美元。 2010 年6 月季度收益中持續經營業務的稅後影響（未包括在我們的非公認會計準則業績中）包括830 萬美元的股權激勵費用、100 萬美元與我們的可轉換債務相關的非現金利息費用以及490 萬美元與我們的收購活動相關的費用。收購相關費用包括購買存貨成本的轉售、無形資產攤銷、收購相關費用。

On a full GAAP basis, the combined results of Microchip and SST's continuing operations were as follows. Gross margins including share based compensation and acquisition related expenses, which includes the sell-through of written up inventory and intangible amortization, were 62.2%. Total operating expenses were $92.8 million or 28.9% of sales and include share based compensation of $7.5 million, acquisition related expenses of $2.5 million, and $0.5 million in severance charges that are classified as a special charge within operating expenses. The non-GAAP and GAAP tax rates for the combined Companies continuing operations for the June quarter were 12.7%. Our tax rate is impacted by the mix of geographical profits and the percentage of our cash that is invested in tax advantaged securities. We expect our combined forward-looking effective tax rate to be between 13% and 13.5%.

根據完整的 GAAP 基準，Microchip 和 SST 持續經營業務的綜合業績如下。包括股權激勵和收購相關費用在內的毛利率（包括已記帳存貨的轉售和無形攤銷）為 62.2%。總營運費用為9,280 萬美元，佔銷售額的28.9%，其中包括750 萬美元的股權激勵費用、250 萬美元的收購相關費用以及50 萬美元的遣散費，這些費用被歸類為營運費用中的特殊費用。合併後公司第二季持續經營業務的非公認會計準則和公認會計準則稅率均為 12.7%。我們的稅率受到地域利潤和投資於稅收優惠證券的現金百分比的影響。我們預計合併後的前瞻性有效稅率將在 13% 至 13.5% 之間。

GAAP net income from continuing operations for the combined Companies was $89.6 million in the June quarter or $0.47 per diluted share. The discontinued operations of SST were essentially breakeven and includes $6 million in acquisition related costs primarily related to the sell-through of inventory that was written up to fair value as of the acquisition date. The dividend declared today of $0.343 per share will be paid on September 2, 2010 to shareholders of record on August 19, 2010. The cash payment associated with this dividend will be approximately $63.7 million.

合併後公司第二季的 GAAP 持續經營淨利潤為 8,960 萬美元，攤薄後每股收益為 0.47 美元。 SST 已終止的業務基本上實現了損益平衡，其中包括 600 萬美元的收購相關成本，主要與截至收購日期計入公允價值的庫存轉售相關。今天宣布的每股 0.343 美元的股息將於 2010 年 9 月 2 日支付給 2010 年 8 月 19 日登記在冊的股東。與本次股息相關的現金支付約為 6,370 萬美元。

Moving on to the balance sheet, the combined inventory of Microchip and SST at June 30, 2010 was $128.1 million, which represents approximately 96 days and is down one day from the prior quarter level. Inventory at our distributors was 40 days, which is also down one day from the prior quarter level. At the end of June, the combined inventory on Microchip's balance sheet and at its distributors was 136 days or down two days from the previous quarter. Deferred income on shipments to distributors increased 9.2% sequentially and was up 29.5% year-over-year, while Microchip's distribution revenue was up 58.1% over the same 12 month time period. I would like to remind you that Microchip recognizes its distribution revenue on a sell-through basis in its worldwide distribution channel.

再來看資產負債表，截至 2010 年 6 月 30 日，Microchip 和 SST 的庫存合計為 1.281 億美元，相當於約 96 天，比上一季的水準下降了一天。我們經銷商的庫存為 40 天，也比上一季水準減少了一天。截至 6 月底，Microchip 資產負債表及其分銷商的庫存總計為 136 天，比上一季減少了兩天。向經銷商出貨的遞延收入較上季成長 9.2%，較去年同期成長 29.5%，而 Microchip 的分銷收入在同一 12 個月期間成長 58.1%。我想提醒您，Microchip 會在其全球分銷管道的銷售基礎上確認其分銷收入。

During the June quarter, we continue to aggressively increase our manufacturing output so we can continue to satisfy the needs of our customers. We expect inventory days on our balance sheet to be about flat in the September quarter and remain well below our internal target of 115 days. Some of Microchip's consolidated balance sheet items have changed materially due to the acquisition of SST. For the SST businesses that we have classified as discontinued operations, we have included only the fixed assets, inventory, and intangible assets for these businesses as assets held for sale. The remaining balance sheet items such as accounts receivable and accounts payable will stay on Microchip's books when the businesses are sold.

在六月季度，我們持續積極增加製造產量，以便能夠持續滿足客戶的需求。我們預計 9 月季度資產負債表上的庫存天數將基本持平，並且仍遠低於 115 天的內部目標。由於收購 SST，Microchip 的一些合併資產負債表項目發生了重大變化。對於我們歸類為終止經營的SST業務，我們僅將這些業務的固定資產、存貨和無形資產列為持有待售資產。當業務出售時，剩餘的資產負債表項目（例如應收帳款和應付帳款）將保留在 Microchip 的帳簿上。

At June 30th, Microchip's receivables excluding SST were $152.2 million, an increase of 10.4% from the balance as of the end of March. The total receivable balance including SST was $193.5 million and includes the receivables for the discontinued operations, which makes the change in the overall receivables balance look abnormally high. The receivables balance will normalize over time as the businesses are rationalized. Receivable balances are in great condition, with excellent payments performance continuing from our customers.

截至6月30日，Microchip不計SST的應收帳款為1.522億美元，較3月底的餘額增加10.4%。包括銷售及服務稅在內的應收帳款餘額總額為1.935億美元，其中包括已終止經營業務的應收帳款，這使得整體應收帳款餘額的變化看起來異常高。隨著業務的合理化，應收帳款餘額將逐漸正常化。應收帳款餘額狀況良好，我們的客戶繼續保持出色的付款表現。

As of June 30th, Microchip's cash and investment position was approximately $1.48 billion. Microchip's cash generation from its standalone business, excluding the SST acquisition, was $95.3 million prior to the payment of a $63.7 million dividend. Our cash generation continues to be strong, and our total cash and investment position is projected to grow by approximately $115 million to $135 million in the September quarter prior to dividend payment.

截至6月30日，Microchip的現金和投資部位約為14.8億美元。在支付 6,370 萬美元股息之前，Microchip 從其獨立業務（不包括 SST 收購）產生的現金為 9,530 萬美元。我們的現金產生能力持續強勁，在支付股息之前的第二季度，我們的現金和投資頭寸總額預計將增長約 1.15 億美元至 1.35 億美元。

Capital spending was approximately $34.1 million for the June quarter. We are continuing to invest in equipment to support the revenue growth of our new products and technologies and our capital expenditure forecast for fiscal 2011 is about $120 million. Depreciation expense for Microchip and SST combined in the June quarter was $22.5 million, which was up from depreciation of $21.3 million for Microchip excluding SST in the March quarter.

六月季度的資本支出約為 3,410 萬美元。我們將繼續投資設備以支持新產品和新技術的收入成長，2011 財年的資本支出預計約為 1.2 億美元。 Microchip 和 SST 在 6 月季度的折舊費用總計為 2,250 萬美元，高於 Microchip 在 3 月季度（不包括 SST）的折舊費用 2,130 萬美元。

I will now ask Ganesh to give comments on performance and the business in the June quarter.

我現在請 Ganesh 對六月季度的業績和業務發表評論。

Thank you, Eric, and good afternoon everyone. I will now comment on the individual product lines. All three of our product lines -- microcontrollers, analog, and [serial memory] -- delivered another quarter of outstanding growth in the June quarter. Our strategy to stay invested in our new product development and demand creation initiative during the global recession continues to pay off handsomely, as you can see from the continuation of our differentiated revenue growth and operating profit results quarter after quarter. Let's now take a closer look at each of our product lines, starting with microcontrollers.

謝謝你，埃里克，大家下午好。我現在將評論各個產品線。我們的所有三個產品線——微控制器、類比和[串行記憶體]——在六月季度又實現了出色的成長。我們在全球經濟衰退期間繼續投資於新產品開發和需求創造計劃的策略繼續獲得豐厚回報，正如您可以從我們逐季持續的差異化收入增長和營業利潤結果中看到的那樣。現在讓我們仔細看看我們的每條產品線，從微控制器開始。

Our microcontroller business delivered superb results, with revenue up a strong 9.8% on a sequential basis and up 55.3% from the year ago quarter, achieving a new record. All three microcontroller segments -- 8 bit, 16 bit, and 32 bit -- also achieved new records for revenue. Flash microcontrollers represented 84% of our microcontroller business in the June quarter. Our 8 bit microcontroller business had another excellent quarter, achieving a new record as all segments of our 8 bit product line again experienced very strong growth. Our 16 bit microcontroller business also achieved another record for quarterly revenue, with strong sequential growth of 26% and up 154% from the year ago quarter. New customers and new designs go into production continued to help drive significant growth as the number of volume 16 bit customers grew by 295 customers to end at 2,868. Our 32 bit microcontroller product line continues to make excellent progress, with an outstanding 86% sequential growth from a small but rapidly growing base and building upon the 36% sequential growth we had in the March quarter. As with our 16 bit microcontrollers, new customers and new designs go into production, are expanding rapidly, and we now have 268 32 bit microcontroller customers in volume production, up from the 222 we reported last quarter.

我們的微控制器業務取得了優異的業績，營收季增 9.8%，較去年同期成長 55.3%，創下新紀錄。所有三個微控制器細分市場——8 位、16 位和 32 位——也都創下了新的收入記錄。快閃記憶體微控制器占我們第二季微控制器業務的 84%。我們的 8 位元微控制器業務又迎來了一個出色的季度，創下了新紀錄，我們的 8 位元產品線的所有細分市場再次經歷了非常強勁的成長。我們的 16 位元微控制器業務也創下了季度營收的新紀錄，較上季強勁成長 26%，較去年同期成長 154%。新客戶和新設計投入生產繼續幫助推動顯著成長，16 位客戶數量增加了 295 個，達到 2,868 個。我們的 32 位元微控制器產品線繼續取得出色進展，在 3 月季度 36% 的環比增長基礎上，在規模雖小但增長迅速的基礎上實現了 86% 的環比增長。與我們的 16 位元微控制器一樣，新客戶和新設計投入生產，正在迅速擴張，我們現在有 268 個 32 位微控制器客戶投入大量生產，高於我們上季度報告的 222 個。

Moving to development tools, we had another record quarter with 49,710 development tools shipped in the June quarter, the fifth consecutive quarter of record development tool sales, obliterating the prior record set just last quarter by a significant margin. As you've seen from our galloping growth in recent quarters, development tool sales are an excellent leading indicator of continued strong design win activity and an acceptance of our solutions by our customers, and the continued strength of record development tool sales should bode well for future growth.

談到開發工具，我們在 6 月季度的季度出貨量達到了 49,710 個開發工具，這是我們連續第五個季度創下的開發工具銷售記錄，大幅刷新了上個季度創下的記錄。正如您從我們最近幾季的快速成長中看到的那樣，開發工具銷售是持續強勁的設計獲勝活動以及客戶對我們的解決方案的接受度的出色領先指標，創紀錄的開發工具銷售的持續強勁應該是個好兆頭未來的成長。

Moving to our analog business, this business also delivered outstanding results, with very strong sequential growth of 17.8% and 101.2% growth versus the year ago quarter to achieve another record high for revenue. This marks the fifth consecutive quarter of double digit growth for our analog business. After breaking through the $100 million annualized revenue run rate for the first time in the December quarter and breaking through the $125 million annualized revenue run rate in the March quarter, our analog business continued to rocket forward, finishing a shade under the $150 million annualized revenue run rate in the June quarter. Growth was especially strong in the linear, mixed signal, safety, security, and RF product lines. We are very pleased with the design win and revenue momentum our analog business has shown and we continue to introduce a steady stream of innovative new products that we expect will contribute to strong revenue growth in the coming quarters.

轉向我們的模擬業務，該業務也取得了出色的業績，與去年同期相比，連續增長了 17.8%，增長了 101.2%，收入再創歷史新高。這標誌著我們的模擬業務連續第五個季度實現兩位數成長。在 12 月季度首次突破 1 億美元年化收入運行率，並在 3 月份季度突破 1.25 億美元年化收入運行率之後，我們的模擬業務繼續猛增，年化收入略低於 1.5 億美元六月季度的運行率。線性、混合訊號、安全、保全和射頻產品線的成長尤其強勁。我們對模擬業務所表現出的設計勝利和收入勢頭感到非常滿意，我們將繼續源源不斷地推出創新的新產品，我們預計這些產品將有助於未來幾季的強勁收入成長。

Moving to serial [EEPROMS] memory, this business was approximately flat on a sequential basis as we prioritized our capacity to support our proprietary microcontroller and analog product lines. We continue to run the serial EEPROMS business in a disciplined fashion that maintains consistent profitability and serves our microcontroller customers to complete the solutions.

轉向串行 [EEPROMS] 記憶器，該業務在連續基礎上大致持平，因為我們優先考慮支援我們專有的微控制器和模擬產品線的能力。我們繼續以嚴格的方式經營串行 EEPROMS 業務，保持穩定的盈利能力，並為我們的微控制器客戶提供完整的解決方案。

We continue to increase our manufacturing output at a measured rate to support the unprecedented order rates and record backlog levels that we have been experiencing. Our current lead times are between eight and 15 weeks -- longer than we would like, but still well below the 15 to 30 weeks that most of our competitors are at. We are capitalizing on the strength to further grow our market share by enabling existing and new customers to better achieve their business objectives using Microchip solutions.

我們繼續以適度的速度增加製造產量，以支持前所未有的訂單率和創紀錄的積壓水平。我們目前的交貨時間為 8 至 15 週，比我們希望的要長，但仍遠低於大多數競爭對手的 15 至 30 週。我們正在利用這一優勢，讓現有和新客戶能夠使用 Microchip 解決方案更好地實現其業務目標，從而進一步擴大我們的市場份額。

Let me now pass it to Steve for general comments as well as our guidance going forward. Steve?

現在讓我將其轉交給史蒂夫，徵求一般性意見以及我們未來的指導。史蒂夫？

Thank you, Ganesh, and good afternoon, everyone. Today I would like to first reflect on the results of the June quarter, and then I will provide an update on our integration activities of Silicon Storage Technology acquisition. Finally, I will talk about our guidance.

謝謝你，Ganesh，大家下午好。今天，我想先回顧一下六月季度的業績，然後我將提供有關收購 Silicon Storage Technology 的整合活動的最新資訊。最後我講一下我們的指導。

Reflecting on the June quarter, it was Microchip's best quarter ever in our history. I want to thank the entire Microchip team, including the employees of our SST subsidiary, for delivering an outstanding quarter in every respect. We made new records in every aspect of our business. We achieved record sales in 8 bit microcontrollers, 16 bit microcontrollers, 32 bit microcontrollers, and analog product lines. We also achieved record non-GAAP gross margin percentage, record non-GAAP operating margin percentage, and record non-GAAP EPS. All these numbers also exceeded our guidance for the quarter. We have now been profitable for 79 consecutive quarters and the September quarter will be our 80th. That will be 20 years of making profit every quarter in good times and in bad times, a record that is unmatched among our peer companies and is testimony to the resiliency of the business model that we have developed and finetuned over time.

回顧六月季度，這是 Microchip 歷史上最好的季度。我要感謝整個 Microchip 團隊，包括我們 SST 子公司的員工，他們在各方面都提供了出色的季度業績。我們在業務的各個方面都創造了新記錄。我們在 8 位元微控制器、16 位元微控制器、32 位元微控制器和類比產品線方面實現了創紀錄的銷售額。我們還實現了創紀錄的非 GAAP 毛利率、創紀錄的非 GAAP 營業利潤率以及創紀錄的非 GAAP 每股收益。所有這些數字也超出了我們對本季的指導。目前，我們已連續 79 個季度實現盈利，9 月份的季度將是第 80 個季度。這將是 20 年，無論順境還是逆境，每個季度都會盈利，這一記錄在我們的同行公司中是無與倫比的，也證明了我們隨著時間的推移開發和調整的商業模式的彈性。

I also wanted to highlight the [competitive] SIA numbers that were recently released. While Microchip does not participate in SIA and short-term SIA numbers are often suspect, many of the investors and analysts follow those numbers. Based on SIA data, June quarter 2010 industry sales for 8 plus 16 bit microcontrollers were up 4.8% sequentially. During the same time, Microchip's 8 plus 16 bit microcontroller sales were up 9.6% sequentially, growing at exactly two times industry sales growth for the last quarter and showing significant market share gains.

我還想強調一下最近發布的[有競爭力的] SIA 數據。雖然 Microchip 不參與 SIA，而且短期 SIA 數據常常令人懷疑，但許多投資者和分析師都會關注這些數據。根據 SIA 數據，2010 年 6 月季度 8 位元和 16 位元微控制器的產業銷售額較上季成長了 4.8%。同時，Microchip 的 8 位元和 16 位元微控制器銷售額較上季成長 9.6%，增幅恰好是上一季產業銷售額增幅的兩倍，市佔率顯著成長。

I will now give an update on the acquisition of Silicon Storage Technology. Microchip completed this acquisition on April 8, 2010. After closing the deal, we moved quickly to identify the core and non-core assets of SST. We identified the licensing business and the 8051 microcontroller businesses as the core assets of the Company, and the results from these operations are being reported in our results from continuing operations. From the continuing businesses of SST, the revenue was $18.4 million, with a gross margin of 90% and an operating margin of 52.5%. This business was dominated by the licensing revenue, which is at a very high gross margin. During the June quarter, we sold one division of SST, which contained the non-core assets of NAND drive, NAND Controllers, smart card, and some older flash memory products of SST. This transaction was consummated on May 21, 2010, and the results from this division through May 21, 2010 are being reported in our results from discontinued operations.

我現在介紹一下收購Silicon Storage Technology的最新情況。 Microchip於2010年4月8日完成了此次收購。交易完成後，我們迅速確定了SST的核心和非核心資產。我們將授權業務和8051微控制器業務確定為公司的核心資產，這些業務的績效將在我們的持續經營績效中報告。 SST的持續業務收入為1840萬美元，毛利率為90%，營業利益率為52.5%。該業務以授權收入為主，毛利率非常高。在第二季度，我們出售了 SST 的一個部門，其中包括 NAND 驅動器、NAND 控制器、智慧卡和 SST 一些較舊的快閃記憶體產品等非核心資產。該交易於 2010 年 5 月 21 日完成，該部門截至 2010 年 5 月 21 日的業績將在我們的終止經營業績中報告。

On July 8, we licensed certain serial NOR-Flash products in certain industry segments and in certain geographies to PCT Limited, a public company in Taiwan. PCT will start selling the licensed products to the licensed market starting September 1, 2010. We received a license fee from PCT and we will receive ongoing royalties from the sale of license products by PCT. The results from this segment for the June quarter as well as September 1, 2010 will be reported in our results from discontinued operations. We are nearing the sale of another division of SST. This business contains a Wi-Fi PA assets which had also been slated as non-core business and asset held for sale, and the results from this business for the June quarter are being reported in our results from the discontinued operations. We will likely consummate this transaction in the current quarter.

7 月 8 日，我們將某些行業領域和某些地區的某些系列 NOR-Flash 產品授權給台灣上市公司 PCT Limited。 PCT 將從 2010 年 9 月 1 日起開始向許可市場銷售許可產品。我們從 PCT 收到許可費，並且我們將從 PCT 銷售許可產品中獲得持續的特許權使用費。該部門 6 月份季度以及 2010 年 9 月 1 日的業績將在我們的已終止業務業績中報告。我們即將出售 SST 的另一個部門。該業務包含 Wi-Fi PA 資產，該資產也被列為非核心業務和待售資產，該業務 6 月季度的業績將在我們已終止業務的業績中報告。我們可能會在本季完成這項交易。

The NOR-Flash memory business has several other segments in it, mainly serial flash and parallel flash products. Microchip will continue to hold the remaining NOR-Flash business unit revenue as an asset held for sale and put its results in the discontinued operations as we further rationalize the various pieces. With two deals consummated and the third deal getting closed, we are making great progress on the restructuring. The R&D expenses associated with the memory business are critical to developing the technology and generating the licensing revenue. Therefore, the R&D expenses of the memory business will be associated with the licensing segment and reported in our continuing operations as operating expenses.

NOR-Flash記憶體業務還有其他幾個部分，主要是串列快閃記憶體和平行快閃記憶體產品。 Microchip 將繼續將 NOR-Flash 業務部門的剩餘收入作為待售資產持有，並在我們進一步合理化各個部分時將其業績納入已終止的業務中。隨著兩筆交易的完成和第三筆交易的完成，我們的重組工作正在取得重大進展。與記憶體業務相關的研發費用對於開發技術和產生授權收入至關重要。因此，記憶體業務的研發費用將與授權部門相關聯，並在我們的持續經營業務中報告為營運費用。

Overall, the acquisition of SST was accretive to Microchip's non-GAAP earnings from continuing operations in the June quarter by $0.04 per share. So the consolidated non-GAAP EPS including SST's results was $0.55 per share. We expect that the acquisition will be accretive to our non-GAAP earnings for the full fiscal year 2011 by about $0.20 per share.

總體而言，收購 SST 使 Microchip 在第二季的持續營運業務中獲得的非 GAAP 收益增加了每股 0.04 美元。因此，包括 SST 業績在內的綜合非 GAAP 每股收益為 0.55 美元。我們預計此次收購將為我們 2011 整個財年的非公認會計原則每股收益增加約 0.20 美元。

I will now provide guidance for September 2010 quarter. Microchip's book-to-bill ratio for June quarter was 1.41, and we started a September quarter with another all-time record high backlog, and this measure is by a wide margin. The bookings rate so far in the quarter has continued to be strong. We are at this point completely booked out for the quarter, so the visibility for the quarter is nearly 100%, barring any execution issues, any pushouts in the backlog, or any issues in distribution sell-through. We're also being successful in creating some upside capacity for the current backlog to help out our customers in short-term need. Considering all that, we expect our net sales for the September quarter including SST to be between $340 million and $343 million, or up between 6% to 7% sequentially. This revenue includes approximately $20 million contribution from the continuing businesses of SST. We expect our non-GAAP gross margin to be about 63.6% for the September quarter, and we expect non-GAAP earnings per share to be approximately $0.58.

我現在將為 2010 年 9 月季度提供指導。 Microchip 6 月季度的訂單出貨比為 1.41，9 月季度開始，我們的積壓訂單又創歷史新高，這項指標大幅領先。本季度迄今為止的預訂率持續保持強勁。目前，我們本季的預訂已全部預訂完畢，因此本季的可見度接近 100%，排除任何執行問題、積壓訂單中的任何推出或分銷銷售中的任何問題。我們也成功地為當前積壓的訂單創造了一些上升能力，以幫助我們的客戶解決短期需求。考慮到所有這些，我們預計 9 月季度（包括銷售及服務稅）的淨銷售額將在 3.4 億美元至 3.43 億美元之間，或比上一季成長 6% 至 7%。該收入包括來自 SST 持續業務的約 2000 萬美元貢獻。我們預計 9 月季度的非 GAAP 毛利率約為 63.6%，非 GAAP 每股盈餘約為 0.58 美元。

Now as we look into the December quarter, our backlog is substantially higher than it was for the September quarter at the same point in time. We continue to see robust demand around the world, driven by exceptionally strong new design wins in all of our strategic product lines. We are increasing our manufacturing capacity to meet the projected demands of our customers in the December quarter. Considering all of this, we expect the December quarter net sales to be up approximately 3% over the September quarter in our otherwise seasonally weakest quarter of the year, in which we are ordinarily down or best case flat. Given all of the complications of accounting for a large acquisition, including purchased inventory write up, amortization of intangibles, and restructuring charges -- like many other companies have done, Microchip will provide guidance and track its results on non-GAAP basis. We believe that non-GAAP results will provide more meaningful comparison to prior quarters, and we request that the analysts continue to report their non-GAAP estimates to First Call.

現在，當我們審視 12 月季度時，我們的積壓訂單大幅高於 9 月季度的同期水準。在我們所有戰略產品線中異常強勁的新設計勝利的推動下，我們繼續看到世界各地的強勁需求。我們正在提高製造能力，以滿足客戶在第二季的預期需求。考慮到所有這些，我們預計 12 月季度的淨銷售額將比 9 月季度增長約 3%，這是我們今年季節性最弱的季度，我們通常會下降或最好的情況是持平。考慮到大型收購的會計處理的所有複雜性，包括購買庫存的記帳、無形資產攤銷和重組費用——就像許多其他公司所做的那樣，Microchip 將提供指導並根據非GAAP 基礎追蹤其結果。我們相信，非 GAAP 業績將提供與前幾個季度更有意義的比較，我們要求分析師繼續向 First Call 報告他們的非 GAAP 預測。

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

那麼，梅勒妮，請您投票提問好嗎？

(Operator Instructions). We'll take our first question from James Schneider with Goldman Sachs.

（操作員說明）。我們將回答高盛詹姆斯·施奈德的第一個問題。

Good afternoon. Thanks for taking my question. I was wondering if you could help us understand -- what percentage of your current bookings fall outside the current quarter, i.e. outside September quarter into the December quarter? And then as part of that, your lead times, you gave a range. Can you tell us whether you expect those to move up, down, or basically stay flat in the current quarter? Thank you.

午安.感謝您提出我的問題。我想知道您是否可以幫助我們了解 - 您當前的預訂量中有多少是在當前季度之外（即從 9 月季度到 12 月季度）？然後，作為交貨時間的一部分，您給出了一個範圍。您能否告訴我們您預計本季這些數字是上升、下降還是基本持平？謝謝。

So a great number of percentage of bookings fall outside of the current quarter. As I said, we're largely booked out. There is some small incremental capacity we have been able to create through acquiring additional equipment and expedites and other stuff, but a large amount of bookings that come in will be scheduled outside of the quarter. In terms of the lead times, I believe that lead time guidance is quite wide, eight to 15 weeks because there are a large number of products -- microcontrollers, memory, analog and within the microcontroller 8, 16, and 32 -- certain products where the lead times are short and other products where the lead times are long. So there's not really one generic answer, but lots of products where we can take additional turns in the quarter, while there are other quarters where the availability is far out. Our lead times at this point in time are not going out. They are basically stable.

因此，很大比例的預訂都在本季之外。正如我所說，我們基本上都被訂滿了。透過購買額外的設備、加急和其他東西，我們已經能夠創造一些小規模的增量產能，但大量的預訂將安排在本季之外。就交貨時間而言，我認為交貨時間指導相當寬，為 8 至 15 週，因為有大量產品 - 微控制器、記憶體、模擬以及微控制器內的 8、16 和 32 - 某些產品交貨時間短的產品和交貨時間長的其他產品。因此，實際上並沒有一個通用的答案，但我們可以在本季對許多產品進行額外輪換，而其他季度的可用性則遙遙無期。目前我們的交貨時間還沒結束。他們基本上穩定。

Thanks, that's helpful. And then can you maybe comment on the geographic nature of the business in the September quarter? Obviously everything is tracking better than normal seasonality at this point, but can you give us a sense of whether Asia, US, or Europe would be tracking better or worse than normal or which one is the most good?

謝謝，這很有幫助。那麼您能否評論一下九月份季度的業務地理性質？顯然，目前一切都比正常的季節性要好，但您能否讓我們了解亞洲、美國或歐洲的情況是否會比正常情況更好或更差，或者哪一個最好？

Are you meaning for June quarter or the September quarter?

您是指六月季度還是九月季度？

September.

九月。

Well, September quarter seasonally is a weak quarter in Europe, because as we speak right now, a lot of the Europe is in holiday in August. So Europe quarter usually is a weak quarter and September quarter is a weak quarter in Europe. It should be fairly strong quarter in Asia, China, and a reasonable one in the US.

嗯，九月季度是歐洲的季節性疲軟季度，因為正如我們現在所說，歐洲很多地方在八月正在度假。因此，歐洲季度通常是疲軟季度，而 9 月季度是歐洲疲軟季度。亞洲和中國的季度表現應該相當強勁，而美國的季度表現也較為合理。

Fair enough. Thanks very much.

很公平。非常感謝。

Our next question comes from Chris Danely with JPMorgan.

我們的下一個問題來自摩根大通的克里斯·丹利（Chris Danely）。

Thanks, guys. Actually just a follow-up on lead times. It seems like this quarter, your lead times maybe extended a little bit, but your competitors' lead times came in. Can you just maybe talk about when you expect your lead times to come back to normal and what you're doing about bringing on increased capacity to bring down those lead times?

多謝你們。實際上只是交貨時間的跟進。看起來這個季度，您的交貨時間可能會延長一點，但您的競爭對手的交貨時間進來了。您能否談談您預計交貨時間何時恢復正常以及您正在採取哪些措施來實現這一目標增加產能以縮短交貨時間？

So lead times are also a function of how the bookings come in, and what you see is the unprecedented bookings rate at which we have been receiving orders. We're working to increase our capacity. As Steve mentioned, we have a pretty broad range depending on what product line and how we're juggling between the product lines to bring in that capacity. As every day comes by, we are adding capability to pull in that lead time, but I don't have an exact date. Depends on which product, which makes a product they're looking at for that lead time. But I expect as time goes on we're working to improve that lead time from where it's at. We don't like where it's at either.

因此，交貨時間也是預訂方式的函數，您所看到的是我們收到訂單時前所未有的預訂率。我們正在努力提高我們的能力。正如史蒂夫所提到的，我們有一個相當廣泛的範圍，這取決於什麼產品線以及我們如何在產品線之間進行調整以帶來這種能力。隨著時間的推移，我們正在增加能力來縮短交貨時間，但我沒有確切的日期。取決於哪種產品，這使得他們在交貨時間內正在尋找產品。但我預計，隨著時間的推移，我們正在努力改善目前的交貨時間。我們也不喜歡它的位置。

Got you, and then as my follow-up, Steve, you talked about some December revenue expectations. Can you guys maybe talk about what you expect the OpEx and gross margins to do beyond this quarter if we're up 3% in December?

明白了，然後作為我的跟進者，史蒂夫，你談到了一些 12 月的收入預期。你們能否談談如果我們 12 月成長 3%，你們預計本季之後的營運支出和毛利率會如何？

Well, with gross margins at 63.6%, I mean they are really all-time high. At this point in time, factories are running full capacity. We're adding equipment and growing further, so the gross margins are essentially in the range. We have said many times before at levels lower than this, the old gross margin model used to be about 61.5%, and partially the gross margin is quite high right now because of the SST licensing business. So longer term basically we have said that gross margins are in the range.

嗯，毛利率為 63.6%，我的意思是它們確實是歷史最高水準。目前，工廠已滿載運轉。我們正在增加設備並進一步成長，因此毛利率基本上在這個範圍內。我們之前多次說過，在低於這個水準的情況下，原來的毛利率模式是61.5%左右，部分是因為SST授權業務，現在的毛利率相當高。所以從長遠來看，我們基本上已經說過毛利率在這個範圍內。

And how about OpEx?

那麼營運支出呢？

The OpEx may, depending on the rate at which the revenue grows, we may continue to see a very small amount of accretion like we have continued to see in the last many quarters. So we're not saying that the OpEx accretion would stop here, but I think with overall OpEx now below 26%, they are pretty much near our long term model.

根據收入成長的速度，營運支出可能會繼續出現極少量的成長，就像過去多個季度所持續看到的那樣。因此，我們並不是說營運支出的增加將就此停止，但我認為，由於目前整體營運支出低於 26%，它們非常接近我們的長期模型。

Got it. Thanks a lot.

知道了。多謝。

Sure.

當然。

And our next question comes from Sumit Dhanda with Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Sumit Dhanda。

Yes, hi. Steve, a question maybe for you. In terms of the book-to-bill and then the improvement in backlog, on the backlog is it also fair to assume that much of the increase in backlog really relates to the calendar fourth quarter as opposed to the third quarter? I guess my question really relates to your backlog and book-to-bills at a record high, but the growth in the core business is only about 3% to 3.5% of the September quarter.

是的，嗨。史蒂夫，也許有個問題想問你。就訂單出貨量和積壓訂單的改善而言，在積壓訂單上，是否可以公平地假設積壓訂單的大部分增加確實與日曆上的第四季度而不是第三季度有關？我想我的問題確實與你們的積壓訂單和訂單出貨比創歷史新高有關，但核心業務的成長僅為 9 月季度的 3% 至 3.5% 左右。

No, I think you didn't hear it right. The guidance for the September quarter is up 6% to 7% and the guidance for the December quarter is 3%.

不，我想你沒有聽錯。 9 月季度的指導成長 6% 至 7%，12 月季度的指導成長 3%。

I apologize, sorry, I meant 6% to 7%, and then 3% in the December quarter. But it seems like with an accelerating book-to-bill, your sequential growth rates are a little lower going forward.

我很抱歉，對不起，我的意思是 6% 到 7%，然後是 12 月季度的 3%。但隨著訂單出貨量的加速成長，你們的環比成長率似乎會略低一些。

Well, what's your point?

嗯，你的意思是什麼？

I guess the point is, do you feel like the backlog increase that you're seeing is reflective of -- more related to your extended lead times, or in other words why with the acceleration in the backlog -- you're not able to guide for an acceleration in sales.

我想重點是，您是否覺得您所看到的積壓增加反映了 - 與您延長的交貨時間更相關，或者換句話說，為什麼隨著積壓的加速 - 您無法加速銷售的指南。

Well, it's all of the above. Our June quarter was better than what we guided to. So a lot of the bookings filled up the June quarter and backlog continued, bookings continued very very strong. So people started to give us orders even outside of the June quarter into the September quarter. And it's only the 5th of August and the September quarter is nearly booked. So we got a strong backlog for that. And we continue to get a large amount of orders where people are placing orders all the way into November and December, because people are just concerned about overall industry conditions and getting the parts or whatever. So we have probably the best visibility we've had in a long time with -- the September quarter guidance is very narrow, because we have full visibility of our June quarter guidance was very narrow and basically gave one number. And during the quarter, we were able to bring additional capacity, and with that we were able to create some upside and we're doing the same thing for September. And we currently see the December quarter well above seasonality, where if you do any kind of averages of the December quarter is our best case flat. But we see a fairly strong backlog building for the December quarter.

嗯，以上就是這些了。我們的六月季度比我們的指導還要好。因此，大量的預訂填滿了六月季度，積壓仍在繼續，預訂量繼續非常強勁。因此，人們甚至開始在六月季度之外到九月季度向我們下訂單。現在才 8 月 5 日，9 月的季度就已經訂滿了。所以我們為此積壓了大量的訂單。我們繼續收到大量訂單，人們一直在 11 月和 12 月下訂單，因為人們只關心整體行業狀況以及獲取零件或其他什麼。因此，我們可能擁有很長一段時間以來最好的可見性——9 月份季度的指導非常狹窄，因為我們對 6 月份季度指導的全面了解非常狹窄，基本上只給出了一個數字。在本季度，我們能夠帶來額外的產能，從而創造一些上漲空間，我們在 9 月也做了同樣的事情。目前我們看到 12 月季度遠高於季節性，如果你對 12 月季度進行任何平均，那麼我們最好的情況是持平。但我們看到 12 月季度的積壓量相當強勁。

Okay, and maybe the other line of questioning I had was on the gross margins, last quarter on the base business they were up 40 basis points. This quarter you're essentially suggesting they are roughly flat. So with the incremental capacity coming online and obviously a pretty healthy top line clip, do we not expect any more incremental leverage off of some defined fixed cost base and a trickle back down to gross margin expansion from current levels?

好吧，也許我遇到的另一個問題是毛利率，上個季度基本業務成長了 40 個基點。本季度您基本上表明它們大致持平。因此，隨著增量產能的上線以及顯然相當健康的營收剪輯，我們是否不期望在某些確定的固定成本基礎上產生更多的增量槓桿，並從當前水平回落到毛利率擴張？

Well, we're juggling a very large number of things, including the acquisition and the businesses from acquisition. Some of those buy wafers from outside. So the entire business of SST runs from wafers from foundries and none of that runs into Microchip. They also do wafer sort assembly and test everything from outside. So the traditional margin accretion that happens when we do inside doesn't really happen from when you do it from outside. Secondly, on the business that is ours and we are doing inside, we are essentially spending premium dollars at times to produce upside from the customers and keep the lines running and make the product available to them over a short-term and working overtime, and paying premium for the equipment from fab to assembly to test to piece parts to others. So at this point in time, gross margin, which is already above a longer term model, isn't really what we're trying to improve. We're trying to obviously keep a focus on serving the customers to make sure we have one of the best suppliers, and they are telling us we're one of the best suppliers in terms of meeting their needs, grow the top line, and we reported 37% operating profit. Give me a break. I don't think our intent is really to add further to gross margin. If it happens, it happens, but that's not really where the focus is.

嗯，我們正在處理很多事情，包括收購和收購帶來的業務。其中一些從外部購買晶圓。因此，SST 的整個業務都來自代工廠的晶圓，而這些晶圓都沒有進入 Microchip。他們還進行晶圓分類組裝並從外部測試所有內容。因此，當我們在內部進行操作時，傳統的利潤增加並不會真正發生在您從外部操作時。其次，在我們內部開展的業務中，我們有時會花費大量資金來從客戶那裡獲得收益，保持生產線運行，並在短期和加班時間內向他們提供產品，並且為從工廠到組裝到測試到將零件提供給其他人的設備支付溢價。因此，目前，已經高於長期模型的毛利率並不是我們真正想要提高的。我們顯然正在努力專注於為客戶提供服務，以確保我們擁有最好的供應商之一，他們告訴我們，在滿足他們的需求、增加收入和提高收入方面，我們是最好的供應商之一。我們報告營業利潤為37%。讓我休息一下。我不認為我們的真正目的是進一步增加毛利率。如果它發生了，它就會發生，但這並不是真正的焦點。

Okay, thank you very much. Thanks for the explanation.

好的，非常感謝。感謝您的解釋。

You're welcome.

不客氣。

We'll take our next question from Uche Orji with UBS.

我們將回答 UBS 的 Uche Orji 提出的下一個問題。

Thank you very much. Steve, let me just ask you a question around analog. It's been growing faster than your microcontroller business. Obviously, that's an element of cross sell within microcontroller and analog, but it looks like there's more to it. Can you just talk about the elements of the subsets you've seen in analog and how sustainable that is and anything you're doing to grow that business on its own right specifically?

非常感謝。史蒂夫，讓我問你一個關於模擬的問題。它的成長速度比您的微控制器業務還要快。顯然，這是微控制器和類比領域交叉銷售的要素，但看起來還有更多內容。您能否談談您在模擬中看到的子集的元素以及其可持續性如何，以及您為發展該業務而採取的具體措施？

Well, the analog business is doing very well. It took a while to get all of the right products in place and position them accordingly, but as Ganesh mentioned, we've had five quarters of double digit growth. It's growing substantially faster than overall microcontrollers because it's a much smaller base, [running at] $150 million annualized and microcontrollers is $1 billion annualized, so you aren't talking about the same scale. The smaller businesses within the microcontroller like the 16 bit and 32 bit are growing similar, very very strong pace, but analog is growing in its own right. We're not winning analog business only because we got the microcontroller. We're up against traditional strong competition of Linear, Maxim, ADI, TI, and others -- so when it's microchips, microcontroller socket, yes we have some advantage. But we are winning against other people's microcontroller sockets, around SPGAs, around [ASIC] products and the general purpose analog market also.

嗯，模擬業務做得很好。我們花了一段時間才將所有正確的產品到位並進行相應的定位，但正如 Ganesh 所提到的，我們已經實現了五個季度的兩位數成長。它的成長速度比整體微控制器要快得多，因為它的基數要小得多，年化收入為1.5 億美元，而微控制器的年化收入為10 億美元，所以你說的不是相同的規模。微控制器中的小型業務（例如 16 位元和 32 位元）正在以相似且非常強勁的速度成長，但模擬本身正在成長。我們贏得模擬業務並不僅僅因為我們擁有了微控制器。我們面對的是 Linear、Maxim、ADI、TI 等公司的傳統強勁競爭 - 因此，當涉及微晶片、微控制器插座時，我們確實有一些優勢。但我們正在圍繞 SPGA、[ASIC] 產品和通用模擬市場戰勝其他人的微控制器插座。

Okay, great. I just wanted to -- disproportionate (inaudible), but are you investing more in this business now given the success you've seen with the analog business? Because I think the perception has been more like it's been just foolproof -- the microcontroller business is growing on its own right now. Is this a tendency to want to invest more specifically on its own and grow as an independent business?

好的，太好了。我只是想——不成比例（聽不清楚），但是考慮到您在模擬業務上所取得的成功，您現在是否會在該業務上投入更多資金？因為我認為這種看法更像是萬無一失的——微控制器業務現在正在自行成長。這是一種想要更具體地進行自身投資並作為獨立企業發展的趨勢嗎？

We try to take advantage of everything that can help it, like the microcontroller attach, but also growing sockets where there's no microcontroller, so it's all of the above.

我們嘗試利用一切可以幫助它的東西，例如微控制器連接，而且還在沒有微控制器的地方增加插座，所以就是以上所有。

All right, let me ask Eric a question on the aging structure of your bookings. I mean as you look at your book-to-bill, obviously you have with this book-to-bill fairly good visibility. But when you look at the aging structure of it, are you a little bit concerned that there will be elements of people asking for things they don't necessarily need, because lead times are as stretched out as they are? So if that's the case, how do you [put that to be sure] that with the bookings you have, things that you feel very comfortable with?

好吧，讓我問 Eric 一個關於您預訂的老化結構的問題。我的意思是，當你查看你的訂單到賬單時，顯然你對這個訂單到賬單有相當好的可見性。但是，當您查看其老化結構時，您是否有點擔心，由於交貨時間如此拉長，人們會要求他們不一定需要的東西？那麼，如果是這樣的話，您如何[確定]您所擁有的預訂以及您感到非常滿意的事情？

I guess I would say that it's always a possibility when things get booked out further in time that our direct customers or distribution partners can push out, pull in, and change that backlog. But what Steve had said earlier is this gives us much improved visibility, allows us to run our factories very efficiently in the short-term, and we can't really control the general economy. So we are just continuing to make sure we have the correct capacity in place to support what our customers are telling us they need today.

我想我會說，當事情進一步及時預訂時，我們的直接客戶或分銷合作夥伴總是有可能推出、拉入和更改積壓的訂單。但史蒂夫之前說過，這讓我們的可見度大大提高，使我們能夠在短期內非常有效率地運作我們的工廠，而我們無法真正控制整體經濟。因此，我們只是繼續確保我們擁有適當的能力來支持客戶告訴我們他們今天需要的東西。

We don't even look at large customers and large distributors. We look at the history, run rate, new design pipeline, major designs that may be coming off from going to the end of life. So it's not like somebody whose buying actually in dollars can buy 10X that in our backlog and we take it to the bank. So we sanitize it continuously and ask questions and look at the run rate and what kind of end product they're building and what's the run rate of that. So the record has been pretty good. I think you can go back in history and look at -- Microchip has no history of large inventory obsoletions -- I mean in the last decade we have had not a single inventory write-off, and we never came to you and said we're going to write off $50 million of inventory.

我們甚至不考慮大客戶和大經銷商。我們著眼於歷史、運行率、新設計流程、可能即將結束的主要設計。因此，這並不像那些實際以美元購買的人可以購買我們積壓訂單中的 10 倍，然後我們將其存入銀行。因此，我們不斷對其進行清理，提出問題，查看運行率以及他們正在構建什麼樣的最終產品以及其運行率是多少。所以戰績已經相當不錯了。我想你可以回顧一下歷史——Microchip沒有大量庫存報廢的歷史——我的意思是，在過去的十年裡，我們沒有一次庫存註銷，而且我們從來沒有來找過你並說過我們“我們將註銷5000 萬美元的庫存。

Right.

正確的。

Like many other companies have done.

就像許多其他公司所做的那樣。

Right.

正確的。

So we know what we're doing and this has been honed over many many cycles, and we are continuously engaged with our customers and distributors in sanitizing the backlog.

因此，我們知道我們在做什麼，而這已經經過許多周期的磨練，我們不斷與客戶和分銷商合作清理積壓的訂單。

All right, great. Thank you very much.

好吧，太好了。非常感謝。

You're welcome.

不客氣。

(Operator Instructions). We will go next to Brendan Furlong with Miller Tabak.

（操作員說明）。接下來我們將與米勒·塔巴克 (Miller Tabak) 一起前往布倫丹·弗隆 (Brendan Furlong)。

Good afternoon. Thank you very much. A question for you on -- your 16 and 32 bit obviously grew phenomenally well in the quarter, but you look at your 8 bit, it looks like it grew roughly 6% sequentially, which seems a little bit below what I would have thought. Are you allocating capacity from 8 bit with the capacity issues to 16 and 32 or what's going on there?

午安.非常感謝。有個問題要問你——你的16 位和32 位在本季度顯然增長得非常好，但你看看你的8 位，它看起來連續增長了大約6%，這似乎有點低於我的預期。您是否將容量從存在容量問題的 8 位分配到 16 和 32 位，或者那裡發生了什麼？

Well, first of all, I think -- I don't know how you calculate it, but we don't break out the growth. I can tell you the 8 bit growth was outstanding. We had a record quarter for 8 bit microcontrollers and we are certainly not allocating capacity away from 8 bit.

嗯，首先，我認為——我不知道你是如何計算的，但我們沒有公佈增長情況。我可以告訴你，8 位元的成長非常出色。我們的 8 位元微控制器季度創歷史新高，我們當然不會將產能分配給 8 位元微控制器。

Okay, and then if I could just follow-up on the previous caller on the analog, appreciate coming off of a low base, but you way outgrew the rest of your peers as you commented on the call. Is there anywhere you can point us to in terms of segments of the analog market that you're doing particularly well leading to this type of very strong growth rate? Thank you.

好吧，如果我能在模擬中跟進前一個來電者，我很感激你的基數較低，但當你對電話發表評論時，你的成長遠遠超過了其他同行。您是否可以向我們指出，在模擬市場的哪些細分市場中，您做得特別好，從而實現了這種非常強勁的成長率？謝謝。

Well, as far as the segments are concerned, I think Ganesh in his comments gave you a broad brush -- linear mixed signal, safety, security, and RF product line. I don't know if that's the granularity you're looking at. Beyond that, we think there's competitive harm done, because Microchip does these things very well -- excellent gross margin, 37% operating profit over the business. And we're always a target, people are always looking at where is Microchip succeeding, where are we putting the efforts, what are we doing. So we tend to not give a lot of information that could bring competitive harm.

嗯，就細分市場而言，我認為 Ganesh 在他的評論中給了你一個廣泛的了解——線性混合信號、安全、安保和射頻產品線。我不知道這是否是您所關注的粒度。除此之外，我們認為這會造成競爭損害，因為 Microchip 在這些方面做得非常好——出色的毛利率，營業利潤佔業務的 37%。我們始終是一個目標，人們總是專注於 Microchip 在哪裡取得了成功，我們在哪裡努力，我們在做什麼。因此，我們傾向於不提供大量可能帶來競爭損害的資訊。

I understand. Thank you very much.

我明白。非常感謝。

You're welcome.

不客氣。

We'll take our next question from Terence Whalen with Citi.

我們將回答花旗集團特倫斯惠倫 (Terence Whalen) 提出的下一個問題。

Hi, good afternoon. This first question is a little bit of a higher level question. Obviously you saw tremendous growth from Asia sequentially in the quarter. My question is did you see anything within your Asian order or revenue patterns that reflected attempts by the government to actually rein in growth?

嗨，下午好。第一個問題是一個更高層次的問題。顯然，本季亞洲地區出現了巨大的成長。我的問題是，您是否在亞洲訂單或收入模式中看到任何反映政府實際控製成長的嘗試？

The answer to that is no. I don't know how we would know that. We're getting orders from our customers and distributors and what's the government's hand in that? I don't know how we would know that. But I was personally in China. I was personally in Taiwan and Ganesh was in Japan and Korea and other places. So our executives really cover the world, every quarter. Not everybody everywhere, but somebody everywhere. So we have a pretty good feel and we see our major customer and distributors and employees. So I personally was in China and Taiwan and I don't really see anybody's hand in it.

答案是否定的。我不知道我們怎麼會知道這一點。我們從客戶和經銷商那裡得到訂單，政府在這方面扮演了什麼角色？我不知道我們怎麼會知道這一點。但我個人在中國。我自己在台灣，Ganesh則在日本、韓國等地。因此，我們的高階主管每季都會覆蓋全球。不是每個地方的每個人，而是每個地方的某個人。所以我們的感覺非常好，我們看到了我們的主要客戶、經銷商和員工。所以我個人在中國和台灣，我並沒有看到任何人參與其中。

And then as a follow-up -- more product specific question, I believe this quarter you introduced a multi-touch product for small form factor portable application. Just wanted to get an update on progress in the touch sensitive market, how large an opportunity is that for Microchip? Thank you.

然後，作為一個更具體的產品問題，我相信本季度您推出了一款用於小型便攜式應用的多點觸控產品。只是想了解觸摸敏感市場的最新進展，這對 Microchip 來說有多大的機會？謝謝。

So yes, we did introduce what we call the projected capacity solution. It has -- while we introduced it in June, we have been working with customers for some time on design. So it's got a very nice pipeline and not only for that but really the whole portfolio of touch solutions that we have. The touch business for us continues to do very well across the very broad range of customers and applications, so we don't have a single killer application we're trying to go after as some of the others do with their touch solutions. But we're very happy with how the touch business is growing across a broad range of customers and applications and building momentum as another growth driver for us.

所以，是的，我們確實引入了所謂的預計容量解決方案。雖然我們在六月推出了它，但我們已經與客戶在設計上合作了一段時間。因此，它有一個非常好的管道，不僅如此，而且實際上是我們擁有的整個觸控解決方案組合。我們的觸控業務在非常廣泛的客戶和應用程式中繼續表現出色，因此我們沒有像其他一些觸控解決方案那樣試圖追求單一的殺手級應用程式。但我們對觸摸業務在廣泛的客戶和應用中的成長以及作為我們另一個成長動力的勢頭感到非常高興。

We have said before we're engaged with over 500 customers in the touch area.

我們之前說過，我們在觸控領域與 500 多家客戶接觸。

Appreciate the color. Congratulations.

欣賞顏色。恭喜。

Thank you.

謝謝。

We will go next to Tim Luke with Barclays.

接下來我們將與巴克萊銀行的蒂姆·盧克進行對話。

Thanks so much. Just in guiding up in the 6% to 7% range and then guiding up through December, could you give any color in the microcontroller area where you might see the strongest growth and where you believe you may be seeing some incremental share traction in that arena? Thank you.

非常感謝。只是在6% 到7% 的範圍內進行指導，然後在整個12 月份進行指導，您能否在微控制器領域給出任何顏色，您可能會在該領域看到最強勁的增長，並且您認為您可能會在該領域看到一些增量份額牽引力？謝謝。

I think our growth is likely to be very broad based. We'll do another record this quarter on 8 bit, another record on 16, another record on 32, and another record on analog. I mean the backlog shows that already. There's almost no doubt in it, so it will be very broad based. Geographically, as I said, Europe should be weak, and Asia and China, and US, all of those will pick up the slack to make that quarter. But from a product line perspective, the backlog in all these product lines will take us to another record.

我認為我們的成長可能會有非常廣泛的基礎。本季我們將在 8 位元上錄製另一張唱片，在 16 位元上錄製另一張唱片，在 32 上錄製另一張唱片，在模擬上錄製另一張唱片。我的意思是積壓的訂單已經表明了這一點。這幾乎是毫無疑問的，所以它的基礎將非常廣泛。正如我所說，從地理位置上看，歐洲應該疲軟，亞洲、中國和美國，所有這些都將彌補該季度的不足。但從產品線的角度來看，所有這些產品線的積壓將讓我們再創新高。

I think we'll gain share in all three segments, 8, 16, and 32.

我認為我們將在所有三個細分市場（8、16 和 32）中獲得份額。

Okay, and in guiding the inventory on hand flat through the September quarter, do you have an expectation about how you think the distribution channel is going to run as you move forward?

好的，在整個 9 月季度指導現有庫存持平時，您對未來分銷管道的運作方式是否有預期？

If you look at it for a number of quarters now, our distribution inventory has been flat to down. It was down last quarter and I think the quarter before was up one day. So it's been in that range for quite a while. And there seems to be some extraordinary concern and there has been for a while with some people on the Street that somehow the distribution inventory is rising and doing something different. You have to look at it in days of sale. It's been largely flat to down. So our feeling is we don't have any excess product to give anybody for building inventory. We can't meet all of the demand. We will go up for the September quarter, significant line of product we will not ship that the people want, and we did not ship in the June that they wanted. And so it's basically everybody's hand to mouth and we don't really have room to build anybody's inventory.

如果你看看現在幾個季度的情況，我們的分銷庫存一直持平甚至下降。上個季度有所下降，我認為前一個季度有一天有所上升。所以它已經在這個範圍內待了很長一段時間了。似乎存在一些不尋常的擔憂，一段時間以來，華爾街上的一些人一直認為分銷庫存正在上升，並且正在做一些不同的事情。您必須在銷售日內查看它。它基本上是持平或下跌。所以我們的感覺是，我們沒有任何多餘的產品可以提供給任何人來建立庫存。我們無法滿足所有的需求。我們將在九月的季度增加重要的產品線，我們不會交付人們想要的產品，而且我們也沒有在他們想要的六月交付。所以基本上每個人都只能勉強度日，我們真的沒有空間來建立​​任何人的庫存。

Thanks very much guys.

非常感謝你們。

We'll take our next question from Doug Freedman with Gleacher and Company.

我們將接受 Gleacher and Company 的 Doug Freedman 提出的下一個問題。

Great. Congratulations, guys, on strong results and thanks for taking the time for my question.

偉大的。恭喜各位，取得了優異的成績，並感謝您花時間回答我的問題。

Thank you.

謝謝。

Steve, we're seeing numbers that are -- or the industry in a position that's really the best shape we've probably ever seen it. I don't know if you would use those terms, but what are some of the early indicators that would trouble you that there's rough waters ahead and what should we be looking at?

史蒂夫，我們看到的數字是——或者說整個行業處於我們可能見過的最好的狀態。我不知道您是否會使用這些術語，但是有哪些早期指標會讓您感到困擾，表明前方將有波濤洶湧，我們應該關注什麼？

I think my feeling is that for our business, I don't really know about the industry. I think that's your job and you guys do it well and continue to do so. But when I look at our business, we model our business really by channel, by geography, by regional manager, and even down to by salesperson, the funnel bubbles up and -- with some judgment, and we roll up the numbers and by division, by product line, by area, by region, by regional sales manager, by VP. And as we look at it, we see a very large amount of increase in served available market and design wins, and I think took that section out of my comments. I think I've used that the last couple of times and I maybe should have included it again this time.

我想我的感覺是，對於我們這個行業來說，我對這個行業並不是很了解。我認為這是你們的工作，你們做得很好，並將繼續這樣做。但當我審視我們的業務時，我們實際上是按通路、地理位置、區域經理，甚至銷售人員來建模我們的業務，漏斗會冒泡，並且經過一些判斷，我們會按部門匯總數字、按產品線、按地區、按區域、按區域銷售經理、按副總裁。當我們看到它時，我們看到服務的可用市場和設計勝利有了很大的增加，我認為這部分已經從我的評論中刪除了。我想我過去幾次已經使用過它，這次我也許應該再次包含它。

We said we increased our sales and marketing headcount 28% about four years ago, and then kept them through the downturn. And these people have produced a very steady stream of new design wins, and the revenue stream I can see how much of the business is there that we didn't do business with those customers, we didn't do business in those regions or whatever. And then all of the new products we have added, we're talking about 300 new products that we didn't have two to 2.5 years ago. And as these products have come out of incubation, so a large amount of revenue is on those products that three years ago we didn't even make them. All of the growth we're seeing on 16 bit, 32 bit, large amount of analog growth, all these products didn't exist three years ago.

我們說，大約四年前，我們將銷售和行銷人員數量增加了 28%，然後讓他們度過了經濟低迷時期。這些人創造了源源不斷的新設計勝利，我可以看到有多少業務是我們沒有與這些客戶做生意的，我們沒有在這些地區做生意的。 。然後我們添加的所有新產品，我們談論的是 2 到 2.5 年前我們還沒有的 300 種新產品。由於這些產品已經完成孵化，因此大量收入來自三年前我們甚至還沒有生產的產品。我們在 16 位元、32 位元以及大量模擬方面看到的所有成長，所有這些產品三年前都不存在。

So it's not older products that have come out of nowhere and somebody is building inventory and channel is all staffed and it's all going to shake out. It's really not that kind of visibility we have. It's very high quality, a high quality backlog, a lot of new products, a lot of new designs that didn't exist before. We basically have been unable to build our inventory and unable to build our distribution inventory. For many many quarters we've been telling you our long term goal for the inventory is 115 days, and we go down every quarter almost because the demand is that strong and we can't really seem to get there. Same thing with our distributors. Everybody is screaming for more parts.

因此，舊產品並不是憑空出現的，有人正在建立庫存，渠道也配備了人員，一切都會改變。這確實不是我們所擁有的那種可見性。這是非常高的質量，高品質的積壓，很多新產品，很多以前不存在的新設計。我們基本上無法建立我們的庫存，也無法建立我們的分銷庫存。許多個季度以來，我們一直告訴您我們的庫存長期目標是 115 天，而我們幾乎每個季度都會減少庫存，因為需求非常強勁，而我們似乎無法真正實現這一目標。我們的經銷商也是如此。每個人都在尖叫著想要更多的零件。

So any of the paths to shakeouts that have happened, you could see inventory build up in the channel, at the customers, at the distributors, at the CMs, at the semiconductor manufacturers. I'm not seeing that. We have no inventory. Our distributors have no inventory. I saw results when they came out for Arrow and we'll see when AvNet comes out -- their inventory hasn't changed. They are here and there, but largely inventory hasn't changed.

因此，無論發生何種方式的洗牌，您都可能會看到通路、客戶、經銷商、CM、半導體製造商的庫存累積。我沒有看到這一點。我們沒有庫存。我們的經銷商沒有庫存。當他們為 Arrow 推出時我看到了結果，我們會在 AvNet 推出時看到結果 - 他們的庫存沒有改變。它們隨處可見，但庫存基本上沒有變化。

So I don't think there are any clouds in the horizon. That's why we went out of the way and gave you a feel for the December quarter that should be much much better than seasonal. I also could take you back to nine months ago in November of 2009, and you may recall we went to totally did something unique where we shared with the Street our internal plan for calendar year 2010, which we have never done before. On November 4, our earnings conference call, November 4, 2009 -- we shared our internal plan with the investors for calendar year 2010. And our guidance at that time was $1.05 billion, up 26% from calendar 2009. And a lot of people questioned that number and I have a large number of report saying that was not doable because they don't estimate for lower in terms of growth. The way we are, we're headed for a couple hundred million dollar higher than that number for the year, and that's without including SST. Approximately 46% growth from calendar year 2009 to calendar year 2010. Earnings per share would be about 33% better. We had guided $1.50. We're looking at well in excess of $2.

所以我認為地平線上沒有任何雲彩。這就是為什麼我們特意讓您感受到 12 月季度的情況應該比季節性好得多。我還可以帶您回​​到九個月前的2009 年11 月，您可能還記得我們完全做了一些獨特的事情，我們與華爾街分享了我們2010 日曆年的內部計劃，這是我們以前從未做過過的。 2009 年 11 月 4 日，在我們的收益電話會議上，我們與投資者分享了 2010 日曆年的內部計劃。當時我們的指導為 10.5 億美元，比 2009 日曆年增長了 26%。質疑這個數字，我有大量報告說這是不可行的，因為他們沒有估計成長率會降低。按照目前的情況，我們今年的收入將比這個數字高出幾億美元，而且這還不包括 SST。從 2009 日曆年到 2010 日曆年，成長約 46%。每股盈餘將提高約 33%。我們指導價為 1.50 美元。我們正在考慮遠超過 2 美元。

So there are a lot of skeptics in the Street and that's okay. That's your job. But we have a job to do for investors and we are continuing to add capacity to serve our customers which will produce the numbers for our investors.

所以華爾街有很多懷疑論者，但沒關係。那是你的工作。但我們還有一項工作要做，為投資者做事，我們正在繼續增加服務客戶的能力，這將為我們的投資者帶來回報。

Terrific. Thank you for all of the color. If I could, I hate to do, but I'll focus on the one thing I see a trend starting to form and I was hoping you could help explain it -- and that is in the memory space we're hearing the competitors move out of this sector. Your number is pulling down the overall Company growth. Is there a transition away that's happening in the marketplace? Can you help us understand what that trend is starting to form there?

了不起。謝謝你給我的所有顏色。如果可以的話，我不想這樣做，但我會專注於我看到趨勢開始形成的一件事，我希望你能幫忙解釋一下——那就是在記憶空間中，我們聽到競爭對手的舉動脫離這個部門。你的數字正在拉低公司的整體成長。市場上是否正在轉變？您能幫助我們了解這種趨勢在那裡開始形成嗎？

Well, we have done this pretty much in every cycle where 90% plus of our business is proprietary, which is microcontrollers, 8, 16, 32, and analog and then we have about 10% or less of the business which is in the memory. And it's a common capacity really on both. And when our proprietary product demand is strong where the customer is relying on Microchip to give the product and there's no substitute product, you can not take our product out and pluck somebody else's product in, then we feel we have higher level of responsibility to the customers to provide them the proprietary product they need. So in those times we take the pedal off the memory and allocate more capacity to microcontroller. We are seeing some of our other competitors doing the same, but we haven't seen them do that in the past. Either they were not focused on it or the proprietary segments were smaller or whatever the change may be, but certainly it's not the first time for us.

好吧，我們幾乎在每個週期都這樣做了，其中90% 以上的業務是專有的，即微控制器、8、16、32 和模擬，然後我們有大約10% 或更少的業務在內存中。這確實是兩者的共同能力。當我們的專有產品需求強勁時，客戶依賴Microchip提供產品，並且沒有替代產品，你不能把我們的產品拿出來，把別人的產品拿進來，那麼我們覺得我們對這個產品負有更高的責任。客戶為他們提供所需的專有產品。因此，在那些時候，我們取消了記憶體踏板，並為微控制器分配了更多容量。我們看到其他一些競爭對手也在做同樣的事情，但我們過去從未見過他們這樣做。要么他們沒有關注它，要么專有部分更小，或者無論發生什麼變化，但這對我們來說肯定不是第一次。

Okay, great. Thank you so much.

好的，太好了。太感謝了。

You're welcome.

不客氣。

We will take a follow-up question from Uche Orji with UBS.

我們將接受瑞銀集團的 Uche Orji 提出的後續問題。

Thank you very much. Just one follow-up. Steve, if you look at pricing in the industry, it looks like the industry has had consistently improving pricing power through this recovery. To what extent do you think that has been responsible not just for your growth but also the growth of the industry? And are we worried we're getting near a peak in terms of the improvements we've seen across the industry?

非常感謝。只是一個後續行動。史蒂夫，如果你看看該行業的定價，你會發現該行業透過這次復甦不斷提高定價能力。您認為這在多大程度上不僅促進了您的成長，也促進了整個產業的發展？我們是否擔心整個行業的改進已接近頂峰？

So I heard that kind of thing. For Microchip, pricing has been responsible for nothing. We have not changed the pricing on our microcontroller analog products at all. That's the obligation we have to a customer who designs a proprietary product, and if we take a customer who designed a proprietary product and then raised the pricing on them, then they have no other choice, no other product to go to, then it will have negative ramifications of them wanting to design a product again. They will look for a product that is multi-sourced or whatever else. So we have never done this on microcontrollers. So in our number, there is no revenue which is coming from price increase on over 90% of our volume -- the microcontroller, the analog, all 8, 16, 32 bit microcontroller. There could be some in the memory, but it's fairly small and we're not growing through memory. Our memory business is flat. So really pricing is not playing a part in our performance.

所以我聽到了這樣的事情。對 Microchip 來說，定價無關緊要。我們根本沒有改變微控制器類比產品的定價。這是我們對設計專有產品的客戶的義務，如果我們接受設計專有產品的客戶，然後提高他們的定價，那麼他們別無選擇，沒有其他產品可去，那麼它就會他們想要再次設計產品會產生負面影響。他們會尋找多來源的產品或其他產品。所以我們從未在微控制器上這樣做過。因此，在我們的數據中，我們 90% 以上的銷售量（微控制器、類比微控制器、所有 8、16、32 位元微控制器）沒有來自價格上漲的收入。記憶中可能有一些，但它相當小，而且我們並不是透過記憶來成長的。我們的記憶體業務持平。所以定價其實並沒有影響我們的業績。

I see. And another way we could look at pricing is, have you had a historical price cut where you cut prices (inaudible) and one way to look at that now has that been more flat in terms of the way it's trended? I just want to understand what the historical pricing pattern has been and what it's been recently?

我懂了。我們看待定價的另一種方式是，你們是否有過歷史性的降價（聽不清楚），而現在看待這一點的一種方式是，就其趨勢而言，是否更加平坦？我只是想了解歷史定價模式是什麼以及最近是什麼？

Yes, so we were just having a discussion in my staff meeting the other day, talking about one of the larger customers. And they got their yearly price decrease, so our business is continuing at that rate.

是的，所以我們前幾天在員工會議上進行了討論，談論了一位大客戶。他們的價格每年都在下降，所以我們的業務正在以這個速度繼續下去。

For the proprietary products, you can't be thinking six months. You have to think of these as platforms that go for many many years and subsequent designs. So it's a much more strategic process rather than a tactical quarter-over-quarter pricing.

對於專有產品，您不能考慮六個月。您必須將這些視為可以使用多年和後續設計的平台。因此，這是一個更具戰略性的過程，而不是戰術性的季度定價。

Our ASP decline year-over-year has typically been in the 3% to 5% range and it just hasn't fluctuated from that in the current environment.

我們的平均售價年減通常在 3% 到 5% 的範圍內，而且在當前環境下並沒有波動。

That's great. Thank you very much.

那太棒了。非常感謝。

We will go next to Craig Ellis with Caris and Company.

接下來我們將與 Caris and Company 一起前往 Craig Ellis。

Thanks for taking the question. And congratulations on the results, guys. You've commented a number of times about adding capacity. Is $90 million still the right way to look at this years CapEx? And if demand winds up being stronger than that plus 3% in the December quarter, would we be looking at a higher CapEx number than that for the fiscal year?

感謝您提出問題。夥計們，恭喜你們的結果。您曾多次評論過有關增加容量的問題。 9000 萬美元仍然是看待今年資本支出的正確方式嗎？如果需求最終強於 12 月季度的 3%，我們會看到比本財年更高的資本支出數字嗎？

So Craig, in the earnings release and my comments I talked to CapEx being increased to $120 million for fiscal 2011. So we are investing in capital to support the growth.

克雷格，在收益報告和我的評論中，我提到 2011 財年的資本支出將增加到 1.2 億美元。因此，我們正在投資資本以支持成長。

And what's the underlying assumption on that $120 million, Eric? Is it that the business grows? And then how do we think about the risks that there would be upside to the $120 million versus that being really the number that settles in for the year?

艾瑞克，這 1.2 億美元的基本假設是什麼？是不是業務成長了？那麼我們如何看待 1.2 億美元與今年實際確定的數字相比存在的上行風險？

Well, let me try to answer that. Don't tie the capital to short-term what happens in September, what happens in December. Any capital you're adding is not going to give you anything probably for -- nothing for September and may barely give you a little bit for December, only if it's in the test area. Any fab capital you add is really for calendar Q1 or Q2. Any test capital you add could give you a little bit in December, but it's largely for Q1. So it's basically investing because we believe there's continued growth in September, December, and then followed by another good March quarter.

好吧，讓我試著回答。不要將資本與短期的9月、12月發生的事掛鉤。你添加的任何資本都不會為你帶來任何可能的東西——九月沒有任何東西，十二月可能幾乎沒有給你一點點，除非它是在測試區域。您添加的任何晶圓廠資本實際上都是針對日曆第一季或第二季的。您添加的任何測試資本都可以在 12 月為您帶來一些好處，但這主要是針對第一季的。所以它基本上是投資，因為我們相信 9 月、12 月將持續成長，然後是另一個好的 3 月季度。

Okay, thanks for that, Steve. And then just looking at the growth in the 32 bit business, it looks like you're starting to see a ramp that's very similar to what we saw as the 16 bit business ramped a number of years ago. As that business has started to ramp, what have you learned about the customer base, the revenues that you're getting, and the different products -- can you just share some of what you're learning as that business starts to become more material for the Company?

好的，謝謝你，史蒂夫。然後只要看看 32 位業務的成長，您就會開始看到與我們幾年前看到的 16 位業務的成長非常相似的成長。隨著業務開始發展，您對客戶群、所獲得的收入以及不同產品了解了哪些資訊——隨著該業務開始變得更加實質性，您能否分享一些您所了解的內容為公司？

So your observation is correct. I think as we look at the first nine quarters that the 32 bit has been in production, its revenue growth rates have been very similar to what we saw on our 16 bit and really you should expect that. It's got the same formula we've used inside Microchip to define the products, develop the products, to take it to market, have it sold by the salesforce, going into an expanding set of customers and applications. The type of applications that a 32 bit can get us into obviously are at the higher end of what our 16 bit products were capable of and we're past that at this point in time. So it's taking us into newer places, within consideration of customers who were predominantly designing the 32 bit that didn't see us there before. So it's expanding our served available market very much in the way we thought about the product line when we brought it to market.

所以你的觀察是正確的。我認為，當我們觀察 32 位生產的前 9 個季度時，其收入增長率與我們在 16 位上看到的非常相似，您確實應該預料到這一點。它的公式與我們在 Microchip 內部使用的公式相同，用於定義產品、開發產品、將其推向市場、由銷售人員銷售、進入不斷擴大的客戶和應用領域。 32 位元可以讓我們進入的應用程式類型顯然處於 16 位元產品能力的高端，而我們目前已經超越了這一點。因此，它將我們帶入更新的領域，考慮到那些主要設計 32 位的客戶，而我們以前從未在那裡見過我們。因此，它極大地擴展了我們所服務的可用市場，就像我們將產品線推向市場時所考慮的那樣。

And Ganesh, anything different that you're seeing with the analog attach rate on the 32 business versus 16 and 8 bit? Are you seeing higher level of intensity and analog?

Ganesh，您認為 32 位元業務與 16 位元和 8 位元的類比連線速率有什麼不同嗎？您是否看到更高程度的強度和模擬？

Absolutely. I think we've said that all along that the more complex a system is, the higher end of our 8 bit, the 16 product line, the 32 bit product lines all go into much more complex applications. And they have an incremental amount of need for analog attach around them and that's very much also helping another leg of how the analog product line is growing.

絕對地。我想我們一直以來都說過，系統越複雜，我們的 8 位元、16 位元產品線、32 位元產品線的高階產品都會進入更複雜的應用程式。他們對周圍的模擬連接的需求不斷增加，這也極大地幫助了模擬產品線增長的另一條腿。

Thanks guys.

多謝你們。

We'll go next to Ruben Roy with Pacific Crest Securities.

接下來我們將介紹 Pacific Crest 證券公司的魯本·羅伊 (Ruben Roy)。

Thank you. Steve, I was wondering if you could give us a little bit more detail on your assessment of what's going on with market share. You guys have clearly been executing very well and growing faster than the SIA data you cited, but at least one of your competitors has as well. And I was wondering if you think some of the shares are coming at the expense of companies can't meet demand, so lead times extended, et cetera. And then maybe those competitors really are on a decline to cut it out longer term, or if it's temporary? Just more detail around market share? Thank you.

謝謝。史蒂夫，我想知道您是否可以向我們提供更多有關您對市場份額情況的評估的詳細資訊。你們顯然執行得非常好，並且比你們引用的 SIA 數據增長得更快，但至少你們的競爭對手之一也是如此。我想知道您是否認為某些股票是以公司無法滿足需求為代價的，因此交貨時間延長等等。那麼，也許這些競爭對手確實會長期拒絕這樣做，或者只是暫時的？只是關於市場佔有率的更多細節嗎？謝謝。

Well, one thing I would like to clarify is that in the microcontrollers, you can't gain market share just because you got product on the shelf and somebody else's lead time is longer. The product has to be designed in, you got to have the right product, the right features. And if that was the only equation then in the last 20 years, a lot of Asians and others when the DRAM capacity or flash capacity, they have microcontrollers that could come in and really we would have achieved the results we have achieved, and we have taught people that through the entire cycle. At Microchip we're thinking four or five years ahead. It takes two to three years to bring the right kind of products into when we go into 16 or 32 bit area -- it takes about three or four years to bring the right kind of products and it takes another year to two years to really get those products designed into the circuit. Now you're talking four or five years investment and then, the cycle comes where other people's lead times are long. You only get what you designed in. You don't harvest from the others. In some low end product lines, low end of 8 bit, yes, some people can switch maybe over shorter term, but even that is very limited.

好吧，我想澄清的一件事是，在微控制器中，你不能僅僅因為你的產品上架而別人的交貨時間更長而獲得市場份額。產品必須經過設計，你必須擁有正確的產品和正確的功能。如果這是唯一的等式，那麼在過去20 年裡，許多亞洲人和其他人，當DRAM 容量或快閃記憶體容量，他們擁有可以進入的微控制器時，我們真的會取得我們所取得的成果，而且我們已經在整個週期中教導人們這一點。在 Microchip，我們正在考慮未來四到五年的情況。當我們進入16 或32 位領域時，需要兩到三年的時間才能推出合適的產品——大約需要三到四年的時間才能推出合適的產品，而真正獲得合適的產品還需要一年到兩年的時間。那些設計到電路中的產品。現在你談論的是四、五年的投資，然後，當其他人的交貨時間很長時，就會出現週期。你只會得到你設計的東西。你不會從別人那裡收穫。在一些低端產品線中，低端8位，是的，有些人可能可以在短期內切換，但即使這樣也是非常有限的。

So I think our market share gains, driven by the strategy we put together four or five years ago that I highlighted, expanding our server available market, adding these people, changing our distribution network, taking control of demand creation and others, and the competitor you mentioned is doing well. They did similar. They have been on restructuring. We actually identified that opportunity 1.5 years ago, tried to buy it and we saw the opportunities. So clearly with the market crashed and our partner backing out, we were unable to execute on that, but we would want to identify the opportunity.

因此，我認為我們的市場份額的成長是由我強調的四五年前我們制定的策略推動的，擴大我們的伺服器可用市場，增加這些人員，改變我們的分銷網絡，控制需求創造和其他以及競爭對手你提到的做得很好。他們也做了類似的事。他們一直在進行重組。事實上，我們在 1.5 年前就發現了這個機會，並試圖購買它，我們看到了其中的機會。很明顯，隨著市場崩盤和我們的合作夥伴退出，我們無法執行該計劃，但我們希望找到機會。

Yes, all good points. Thank you for that. And then quickly, you were asked earlier on the call about what analysts should look for for signs of any type of deterioration in demand. Yet you guys have been quite innovative in creating ways to look out for that as well, so with things like your housing index, et cetera, have you been doing any of that or discussing any of this type of thing with your customers? And if so, what is the feedback on true end demand that your customers are seeing?

是的，都是優點。謝謝你。然後很快，您在電話會議的早些時候被問及分析師應該尋找哪些需求惡化的跡象。然而，你們在創造方法來關注這一點方面也非常具有創新性，因此，對於住房指數等問題，你們是否一直在做這些事情或與客戶討論任何此類事情？如果是這樣，您的客戶看到的關於真實最終需求的回饋是什麼？

Well, we're having a large amount of discussions with our customers and distributors around the world, like I mentioned. We are seeing very very strong demand driven by large number of new products, significant innovation going on in all kinds of industries. The content is going in cars, the content is going in consumer electronics, all of the things going on in gaming, 3D glasses, the entire TV industry is going through a major change with first the plasma and the LCD, and the [tint] TVs, and now the 3D TVs and all that kind of stuff. And all of this stuff tends to have Microcontrollers everywhere in each and every thing. What's happening in the touch area, what's happening in the low power area, what's happening in green power, what's happening in analog for digital power conversion, connectivity -- I mean, we are everywhere and that's one of the things.

嗯，正如我所提到的，我們正在與世界各地的客戶和分銷商進行大量討論。我們看到大量新產品和各行業正在進行的重大創新推動了非常非常強勁的需求。汽車中的內容、消費性電子產品中的內容、遊戲、3D 眼鏡中發生的所有事情，整個電視行業正在經歷一場重大變革，首先是等離子和 LCD，以及 [色調]電視，現在是3D 電視以及諸如此類的東西。所有這些東西往往在每件事情上都到處都有微控制器。觸控領域正在發生什麼，低功耗領域正在發生什麼，綠色能源方面正在發生什麼，數位電源轉換、連接的類比方面正在發生什麼——我的意思是，我們無處不在，這就是其中之一。

We're really not focused on one area like touch or something we can tell you we're doing X amount of revenue. We're involved in 15 to 20 different things, so our business is very broad based. We do not like low margin of some of the areas doing a very large volume business. There's present of 40% margin business I can do also, substantially larger. Our operating profits at 37% are closer to somebody else's gross margins.

我們確實不專注於觸摸等某一領域，或者我們可以告訴你我們正在做X數量的收入的領域。我們涉及 15 到 20 個不同的領域，因此我們的業務基礎非常廣泛。我們不喜歡某些業務量很大的領域利潤率低。目前我還可以做 40% 的保證金業務，規模要大得多。我們的營業利潤為 37%，更接近其他人的毛利率。

So we just have a different model. We're not criticizing anybody else's, but we're not trying to be anybody else. We know what we're doing and we like our model. It has been successful over time. In good time and bad times this model is profitable and very very consistent and staid, and we're here to run it that way.

所以我們只是有一個不同的模型。我們不會批評別人，但我們也不會試圖成為別人。我們知道我們在做什麼，我們喜歡我們的模式。隨著時間的推移，它取得了成功。無論順境或逆境，這個模式都是有利可圖的，而且非常一致和穩定，我們就是以這種方式運作的。

Great. Thanks, Steve.

偉大的。謝謝，史蒂夫。

We'll go next to [Neely Matta] with Stifel Nicolaus.

接下來我們將會和 Stifel Nicolaus 一起去 [Neely Matta]。

Hi, I'm Neely calling in for Kevin. I just wanted to get the thoughts on the Japanese market. One of your recent competitors bought some (inaudible) there and it seems like that market is consolidating a little bit. Just wanted to see about your strategy and what your thoughts are about Japan?

嗨，我是尼利幫凱文打電話。我只是想了解日本市場的想法。您最近的一位競爭對手在那裡購買了一些（聽不清楚），而且該市場似乎正在鞏固一點。只是想了解您的策略以及您對日本的看法？

So I think you're referring to the Renaissance/NEC combination?

所以我認為你指的是文藝復興/NEC 組合？

Yes.

是的。

Okay, so the way I look at it is -- it's not just the Japan market, but Renaissance and NEC are large players in the microcontroller market. I think their combination presents significant opportunity for Microchip. First of all, just combining the two companies results in many of the customers looking for another source where Renaissance and NEC may have been the two sources they've had, opening it up to Microchip as another possible source. Second, as they restructure they are going to have to make significant changes, and some of which they've announced and some of which are still yet to come with respect to the manufacturing network, with respect to the product line strategy. And all of that is going to create further dislocation in their existing customer base, and I think that's got to again represent an opportunity, because when you create that dislocation a customer opens it up to say what other choices do I have. And with our investment in both products as well as in customer service, I think we'll find many many opportunities that are currently served by Renaissance NEC -- some maybe in Japan but many maybe outside of Japan as well.

好吧，我的看法是——不僅僅是日本市場，Renaissance 和 NEC 也是微控制器市場的大玩家。我認為他們的結合為 Microchip 帶來了重大機會。首先，僅僅將這兩家公司合併就會導致許多客戶尋找另一個來源，而 Renaissance 和 NEC 可能是他們已有的兩個來源，從而向 Microchip 開放作為另一個可能的來源。其次，隨著他們的重組，他們將不得不做出重大改變，其中一些是他們已經宣布的，一些是關於製造網路和產品線策略的。所有這些都會在他們現有的客戶群中造成進一步的混亂，我認為這必須再次代表一個機會，因為當你造成這種混亂時，客戶會敞開心扉說我還有什麼其他選擇。透過我們對產品和客戶服務的投資，我認為我們會發現文藝復興 NEC 目前提供的許多機會——有些可能在日本，但很多也可能在日本以外。

What other places outside of Japan might that be?

日本以外的其他地方可能是什麼？

Well, they are global business as well. They operate in the US, they operate in Europe and they have customers that -- which they've had good positions and I expect those customers will open up to. And in fact we've had many many discussions and have gone into varying degrees of helping those customers with another platform choice.

嗯，他們也是全球性企業。他們在美國運營，在歐洲運營，他們擁有良好的客戶地位，我希望這些客戶會向他們敞開心扉。事實上，我們已經進行了很多討論，並在不同程度上幫助這些客戶選擇其他平台。

Okay, thank you very much.

好的，非常感謝。

That concludes today's question and answer session. At this time I'd like to turn the conference back over to Mr. Sanghi for any additional or closing remarks.

今天的問答環節到此結束。現在，我想將會議轉回給桑吉先生，讓他發表補充或結束語。

Well, we want to thank all of the analysts and investors for attending the call and we'll see some of you on the road. Otherwise we'll talk to you next quarter. Thank you.

好吧，我們要感謝所有參加電話會議的分析師和投資者，我們會在路上見到你們中的一些人。否則我們會在下個季度與您聯繫。謝謝。

That concludes today's conference. We thank you for your participation.

今天的會議到此結束。我們感謝您的參與。