微晶片科技 (MCHP) 2015 Q1 法說會逐字稿

Good day, everyone, and welcome to this Microchip Technology first-quarter and fiscal-year 2015 financial results conference call. As a reminder, today's call is being recorded.

大家好，歡迎參加本次 Microchip Technology 2015 年第一季度和財年財務業績電話會議。提醒一下，今天的電話正在錄音中。

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

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

Thank you and good afternoon, everyone.

謝謝大家，大家下午好。

During the course of this conference call, we will be making projections and other forward-looking statements regarding future events for 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 will 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.

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

In attendance with me today are Steve Sanghi, Microchip's President and CEO, and Ganesh Moorthy, Microchip's COO. I will comment on our first-quarter fiscal-year 2015 financial performance, and Steve and Ganesh will then give their comments on the results, provide some additional information on our acquisition activities, and discuss the current business environment, as well as our guidance. We will then be available to respond to specific investor and analyst questions.

今天與我一同出席的有 Microchip 總裁兼首席執行官 Steve Sanghi 和 Microchip 首席運營官 Ganesh Moorthy。我將對我們 2015 財年第一季度的財務業績發表評論，然後史蒂夫和 Ganesh 將對結果發表評論，提供有關我們收購活動的一些額外信息，並討論當前的商業環境以及我們的指導。然後，我們將可以回答特定的投資者和分析師的問題。

I want to remind you that we are including information in our press release and this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the investor relations page of our website at www.microchip.com, which we believe you will find useful when comparing GAAP and non-GAAP results.

我想提醒您，我們將在我們的新聞稿和本次電話會議中包含有關各種 GAAP 和非 GAAP 措施的信息。我們已在我們網站 www.microchip.com 的投資者關係頁面上發布了完整的 GAAP 與非 GAAP 對賬，我們相信您在比較 GAAP 和非 GAAP 結果時會發現它很有用。

I will now go through some of the operating results, including net sales, gross margin, and operating expenses. I will be referring to these results on a non-GAAP basis prior to the effects of our acquisition activities and share-based compensation.

我現在將介紹一些運營結果，包括淨銷售額、毛利率和運營費用。在我們的收購活動和基於股份的薪酬的影響之前，我將在非公認會計原則的基礎上參考這些結果。

Non-GAAP net sales in the June quarter were above the midpoint of our guidance at a record $531.3 million, including $20.2 million of non-GAAP net sales from Supertex, and were up 7.7% sequentially from net sales of $493.4 million in the immediately preceding quarter. Non-GAAP net sales were $2.5 million higher than GAAP net sales, as GAAP does not recognize revenue on the sellthrough of products sitting in the distribution channel on the date an acquisition occurs.

6 月季度的非美國通用會計準則淨銷售額高於我們指引的中點，達到創紀錄的 5.313 億美元，其中包括來自 Supertex 的 2020 萬美元的非美國通用會計準則淨銷售額，比上一季度的 4.934 億美元淨銷售額環比增長 7.7%四分之一。非 GAAP 淨銷售額比 GAAP 淨銷售額高 250 萬美元，因為在收購發生之日，GAAP 不確認分銷渠道中產品的銷售收入。

Revenue by product line was a record $343.8 million for microcontrollers, a record $127.8 million for analog, $33.4 million for memory, $20.4 million for licensing, and $5.9 million of other. The Supertex non-GAAP revenue was $17.6 million of analog and $2.7 million of foundry services revenue, which we classify in the other category.

按產品線劃分的微控制器收入為創紀錄的 3.438 億美元，模擬為創紀錄的 1.278 億美元，內存為 3340 萬美元，許可為 2040 萬美元，其他收入為 590 萬美元。 Supertex 非 GAAP 收入為 1760 萬美元的模擬收入和 270 萬美元的代工服務收入，我們將其歸為另一類。

Revenue by geography was a record $103.3 million in the Americas, $109.7 million in Europe, and a record $318.3 million in Asia. I will remind you that we recognize revenue based on where we ship our products to, which tends to skew some of the revenue towards Asia, where a lot of contract manufacturing takes place.

按地域劃分的收入在美洲達到創紀錄的 1.033 億美元，在歐洲達到創紀錄的 1.097 億美元，在亞洲達到創紀錄的 3.183 億美元。我會提醒你，我們根據我們將產品運送到哪裡來確認收入，這往往會使部分收入偏向亞洲，那裡有很多合同製造。

On a non-GAAP basis, gross margins were above the high end of our guidance at 59.8% in the June quarter. Non-GAAP operating expenses were at the low end of our guidance at 26.6% of sales. Non-GAAP operating income was above the high end of our guidance at 33.2% of sales and net income was a record $151.6 million. This resulted in record earnings of $0.68 per diluted share, which is at the high end of our guidance and $0.02 above the midpoint.

在非公認會計原則的基礎上，6 月季度的毛利率高於我們指引的高端 59.8%。非美國通用會計準則運營費用佔銷售額的 26.6%，處於我們指引的低端。非美國通用會計準則營業收入佔銷售額的 33.2%，高於我們指引的高端，淨收入達到創紀錄的 1.516 億美元。這導致每股攤薄收益達到創紀錄的 0.68 美元，處於我們指引的高端，比中點高 0.02 美元。

On a GAAP basis, net sales were $528.9 million and gross margins, including share-based compensation and acquisition-related expenses, were 58% in the June quarter. GAAP gross margins include the impact of $2.1 million of share-based compensation and $7.8 million of charges associated with the sellthrough of written-up inventory from our acquisitions of Supertex and EqcoLogic.

按公認會計原則計算，6 月季度的淨銷售額為 5.289 億美元，毛利率（包括股權激勵和收購相關費用）為 58%。 GAAP 毛利率包括 210 萬美元的股票薪酬和 780 萬美元與我們收購 Supertex 和 EqcoLogic 的書面庫存銷售相關的費用的影響。

Total operating expenses were $190.6 million, or 36% of sales, and include acquisition intangible amortization of $36.6 million, share-based compensation of $11.3 million, $0.9 million of acquisition-related expenses, and special charges of $0.3 million.

總運營費用為 1.906 億美元，佔銷售額的 36%，其中包括 3660 萬美元的收購無形攤銷、1130 萬美元的股權補償、90 萬美元的收購相關費用和 30 萬美元的特殊費用。

The GAAP net income of $89.9 million, or $0.40 per diluted share. GAAP net income includes nonrecurring unfavorable tax events of $4.5 million, which were primarily associated with integrating Supertex into Microchip's corporate structure.

GAAP 淨收入為 8990 萬美元，或每股攤薄收益 0.40 美元。 GAAP 淨收入包括 450 萬美元的非經常性不利稅務事件，這主要與將 Supertex 整合到 Microchip 的公司結構中有關。

In the June quarter, the non-GAAP tax rate was 10.7% and the GAAP tax rate was 16%. The GAAP tax rate was unfavorably impacted by the $4.5 million of nonrecurring tax events that I mentioned before. Our tax rate is impacted by the mix of geographical profit, withholding taxes associated with our licensing business, and the tax effect of various nonrecurring items. Excluding any nonrecurring events, we expect our longer-term forward-looking non-GAAP effective tax rate to be about 10.5%.

6月季度，非GAAP稅率為10.7%，GAAP稅率為16%。 GAAP 稅率受到我之前提到的 450 萬美元的非經常性稅務事件的不利影響。我們的稅率受到地域利潤、與我們的許可業務相關的預扣稅以及各種非經常性項目的稅收影響的影響。排除任何非經常性事件，我們預計我們的長期前瞻性非公認會計原則有效稅率約為 10.5%。

To summarize the after-tax impact the non-GAAP adjustments had on Microchip's earnings per share in the June quarter, acquisition-related items were about $0.195, share-based compensation was about $0.053, nonrecurring unfavorable tax events were about $0.02, and non-cash interest expense was about $0.07.

總結非 GAAP 調整對 Microchip 6 月季度每股收益的稅後影響，收購相關項目約為 0.195 美元，股票薪酬約為 0.053 美元，非經常性不利稅務事件約為 0.02 美元，非現金利息支出約為 0.07 美元。

The dividend declared today of $0.356 per share will be paid on September 4, 2014, to shareholders of record on August 21, 2014. The cash payment associated with this dividend will be approximately $71.4 million.

今天宣布的每股 0.356 美元的股息將於 2014 年 9 月 4 日支付給 2014 年 8 月 21 日登記在冊的股東。與該股息相關的現金支付將約為 7140 萬美元。

This quarter's dividend will be our 48th consecutive quarter of making a dividend payment. We have never made reductions in our dividend and, in fact, this quarter's increase marks the 42nd occasion we have increased the dividend payment and our cumulative dividends paid amount to $2.3 billion. This program continues to be an important component of how we will return value to our shareholders.

本季度的股息將是我們連續第 48 個季度支付股息。我們從未減少股息，事實上，本季度的增加標誌著我們第 42 次增加股息支付，我們支付的累計股息達到 23 億美元。該計劃仍然是我們如何向股東回報價值的重要組成部分。

Moving on to the balance sheet, consolidated inventory at June 30, 2014, was $264.5 million, or 109 days, compared to 118 days at the end of the March quarter. The inventory balance at June 30, 2014, includes $8.5 million of Supertex inventory writeup costs required for GAAP purchase accounting. Excluding the Supertex inventory and its associated GAAP writeup, Microchip had 108 days of inventory on its balance sheet at the end of the quarter.

轉到資產負債表，截至 2014 年 6 月 30 日，合併庫存為 2.645 億美元，即 109 天，而第三季度末為 118 天。截至 2014 年 6 月 30 日的存貨餘額包括 850 萬美元的 Supertex 存貨增記成本，以符合 GAAP 採購會計準則。不包括 Supertex 庫存及其相關的 GAAP 記錄，Microchip 在本季度末的資產負債表上有 108 天的庫存。

We have taken steps to increase our capacity so our inventory days don't go significantly lower in the September quarter and support the needs of our customers.

我們已採取措施增加我們的產能，因此我們的庫存天數在 9 月季度不會顯著降低，並支持我們客戶的需求。

Inventory at our distributors decreased by two days in the June quarter to 31 days and remains at low levels compared to where they have been historically. I want to remind you that our distribution revenue throughout the world is recognized on a sellthrough basis.

我們分銷商的庫存在 6 月季度減少了兩天至 31 天，與歷史水平相比仍處於較低水平。我想提醒您，我們在全球的分銷收入是在銷售基礎上確認的。

At March 31, the accounts receivable balance was $286.7 million, an increase by $44.3 million on a sequential basis, due to the acquisition of Supertex and the revenue growth we experienced in the quarter. Receivable balances remain in great shape.

3 月 31 日，應收賬款餘額為 2.867 億美元，環比增加 4430 萬美元，原因是收購 Supertex 和我們在本季度經歷的收入增長。應收賬款餘額保持良好狀態。

The increase in Microchip's net cash and investment balance in the June quarter, excluding our acquisition of Supertex and our dividend payment, was $121.3 million. As of June 30, the consolidated cash and total investment position was approximately $2.29 billion and our borrowings under our revolving line of credit increased to $980 million.

不包括我們對 Supertex 的收購和我們的股息支付，Microchip 在 6 月季度的淨現金和投資餘額增加了 1.213 億美元。截至 6 月 30 日，合併現金和總投資頭寸約為 22.9 億美元，循環信貸額度下的借款增加到 9.8 億美元。

The increase in Microchip's borrowing during the June quarter was driven by our acquisition of Supertex.

Microchip 在 6 月季度的借款增加是由於我們對 Supertex 的收購。

Excluding dividend payments and our acquisition activities, we expect our total cash and investment position to grow by approximately $160 million to $180 million in the September quarter.

不計股息支付和我們的收購活動，我們預計我們的總現金和投資頭寸將在 9 月季度增長約 1.6 億美元至 1.8 億美元。

Capital spending was approximately $44.6 million for the June quarter, and we expect about $50 million in capital expenditures in the September quarter and overall capital expenditures for the fiscal-year 2015 to be about $175 million, as we are adding capital to support the growth of the business and to bring in house more of the assembly and test operations that are currently outsourced.

6 月季度的資本支出約為 4460 萬美元，我們預計 9 月季度的資本支出約為 5000 萬美元，2015 財年的總體資本支出約為 1.75 億美元，因為我們正在增加資本以支持業務並引入更多目前外包的組裝和測試業務。

Depreciation expense in the June quarter was $23.3 million.

六月季度的折舊費用為 2330 萬美元。

I want to remind our investors and analysts that as Microchip's stock price changes, there is a diluted share count impact from Microchip's outstanding convertible debt. There is a table on the supplemental financial information section of Microchip's investor relations site that walks through the level of dilution at various stock prices that you may find helpful.

我想提醒我們的投資者和分析師，隨著 Microchip 的股價變化，Microchip 的未償可轉換債券會對稀釋的股票數量產生影響。 Microchip 投資者關係網站的補充財務信息部分有一張表格，其中介紹了您可能會發現有用的各種股票價格的稀釋程度。

The diluted common shares outstanding presented in the guidance table in today's press release assumes an average Microchip stock price in the September 2014 quarter of $46 per share. However, we make no prediction as to what our actual share price will be for such period or any other period.

在今天的新聞稿中的指導表中列出的稀釋後流通普通股假設 Microchip 2014 年 9 月季度的平均股價為每股 46 美元。但是，我們不會預測我們在該時期或任何其他時期的實際股價。

I will now ask Ganesh to give his comments on the performance of the business in the June quarter and provide an update on the Supertex and ISSC acquisitions. Ganesh?

我現在請 Ganesh 就 6 月季度的業務表現發表評論，並提供有關 Supertex 和 ISSC 收購的最新信息。加內甚？

Thank you, Eric, and good afternoon, everyone. Let's take a closer look at the performance of each of our product lines, starting with microcontrollers.

謝謝你，埃里克，大家下午好。讓我們仔細看看我們每個產品線的性能，從微控制器開始。

Our overall microcontroller revenue grew strongly at 5.3% sequentially in the June quarter and was up 14.5% versus the year-ago quarter, achieving a new revenue record. All three microcontroller segments, 8-bit, 16-bit, and 32-bit, experienced sequential growth in the June quarter and all three microcontroller segments achieved record revenue in the June quarter. Microcontrollers represented 64.7% of Microchip's overall revenue in the June quarter.

我們的整體微控制器收入在 6 月季度強勁增長，環比增長 5.3%，與去年同期相比增長 14.5%，創下新的收入記錄。所有三個微控制器細分市場（8 位、16 位和 32 位）均在 6 月季度實現了連續增長，所有三個微控制器細分市場均在 6 月季度實現了創紀錄的收入。微控制器在 6 月季度佔 Microchip 總收入的 64.7%。

We normally don't provide much color on our 8-bit microcontroller business, but I'm going to make an exception this time because the results are exceptional and don't always get the attention they deserve. Not only did our 8-bit microcontroller revenue achieve a new record in the June quarter, the cumulative revenue in the last four quarters of our 8-bit microcontroller revenue was up 11.5% over the cumulative revenue in the prior four quarters.

我們通常不會在我們的 8 位微控制器業務上提供太多色彩，但這次我要破例，因為結果非常出色，而且並不總是得到應有的關注。不僅我們的 8 位微控制器收入在 6 月季度創下新紀錄，我們 8 位微控制器收入的最後四個季度的累計收入比前四個季度的累計收入增長了 11.5%。

We continue to gain significant share as competitors have defocused in this area, while we have continued to introduce a large number of innovative new products that have captured the imagination of a broad range of customers who have designed them in. In fact, demand for our innovative new 8-bit microcontroller products introduced over the last three years have been so strong, it has outstripped our ability to ramp manufacturing fast enough. Steve will talk more about that later in his section today.

隨著競爭對手在該領域的分散注意力，我們繼續獲得可觀的份額，同時我們繼續推出大量創新的新產品，這些產品吸引了設計它們的廣大客戶的想像力。事實上，對我們的需求過去三年推出的創新 8 位微控制器產品非常強大，它已經超過了我們以足夠快的速度進行生產的能力。史蒂夫將在今天稍後的部分中詳細討論這一點。

Our 16-bit microcontroller business was up 0.6% sequentially in the June quarter, also achieving a new record for revenue. 16-bit microcontroller revenue was up 26.5% versus the year-ago quarter. While the 16-bit microcontroller business took a bit of a pause in the June quarter, this business continues to be an important engine of ongoing growth for us as we continue to find and serve new customers and new applications with our expanding portfolio, and we expect strong growth in the September quarter.

我們的 16 位微控制器業務在 6 月季度環比增長 0.6%，收入也創下新紀錄。 16 位微控制器收入同比增長 26.5%。雖然 16 位微控制器業務在 6 月季度稍有停頓，但隨著我們通過不斷擴大的產品組合繼續尋找和服務新客戶和新應用，這項業務仍然是我們持續增長的重要引擎，而且我們預計 9 月季度將出現強勁增長。

Our 32-bit microcontroller business was up 21.5% sequentially in the June quarter, also achieving a new record for revenue. 32-bit microcontroller revenue was also up 59.8% versus the year-ago quarter. This business is now at a size and growth rate where it is making meaningful contribution to our ongoing growth. We are continuing to rapidly expand our new product portfolio, win new designs, and expand our presence in fields of play, like the Internet of Things, to enable further growth in revenue and market share.

我們的 32 位微控制器業務在 6 月季度環比增長 21.5%，收入也創下新紀錄。與去年同期相比，32 位微控制器收入也增長了 59.8%。該業務現在的規模和增長率正在為我們的持續增長做出有意義的貢獻。我們將繼續快速擴展我們的新產品組合，贏得新設計，並擴大我們在物聯網等遊戲領域的影響力，以實現收入和市場份額的進一步增長。

Overall, we continue to gain significant microcontroller market share and have the new product momentum and customer engagement to continue to gain even more share as we further build the best performing microcontroller franchise in the industry.

總體而言，隨著我們進一步打造業內表現最佳的微控制器特許經營權，我們繼續獲得顯著的微控制器市場份額，並憑藉新產品的勢頭和客戶參與度繼續獲得更多份額。

Now let's move to analog products, and before I comment on the analog business, let me reiterate what Eric said in terms of how we will be reporting the Supertex business, as this is the first time we are including it in our results. Approximately 85% to 90% of Supertex revenue consists of proprietary analog products, which will be consolidated into our analog reporting segment. The remaining approximately 10% to 15% of Supertex business consists of providing specialty foundry services for customers to have their proprietary designs fabricated by Supertex, which will be consolidated into our reporting segment classified as other.

現在讓我們轉向模擬產品，在我評論模擬業務之前，讓我重申一下 Eric 所說的關於我們將如何報告 Supertex 業務的內容，因為這是我們第一次將它包含在我們的結果中。 Supertex 收入的大約 85% 至 90% 由專有的模擬產品組成，這些產品將合併到我們的模擬報告部門。 Supertex 業務的剩餘約 10% 至 15% 包括為客戶提供專業代工服務，讓 Supertex 製造其專有設計，這將合併到我們歸類為其他的報告分部。

All of what we have reported in the other category historically has been our specialty high-reliability assembly and test services business that we inherited as part of our acquisition of MMT in Thailand about three and half years ago.

歷史上，我們在其他類別中報告的所有內容都是我們在大約三年半前在泰國收購 MMT 時繼承的專業高可靠性組裝和測試服務業務。

Now let's get to the performance of our analog business. Including Supertex analog products, our analog business grew 18.9% sequentially in the June quarter and was up 23.8% from the year-ago quarter. Including Supertex analog products revenue, our analog business represented 24% of Microchip's overall revenue in the June quarter and we crossed a key milestone with over $500 million of annualized analog products revenue. We continue to develop and introduce a wide range of innovative and proprietary new products to fuel the future growth of our analog business.

現在讓我們來看看我們模擬業務的表現。包括 Supertex 模擬產品在內，我們的模擬業務在 6 月季度環比增長 18.9%，比去年同期增長 23.8%。包括 Supertex 模擬產品收入在內，我們的模擬業務在 6 月季度佔 Microchip 總收入的 24%，我們跨越了一個重要的里程碑，年化模擬產品收入超過 5 億美元。我們繼續開發和推出一系列創新和專有的新產品，以推動我們模擬業務的未來增長。

Moving to our memory business, which is comprised of our Serial E-Squared memory products, as well as our SuperFlash memory products, this business was sequentially up 0.7%. We continue to run our memory business in a disciplined fashion that maintains consistently high profitability, enables our licensing business, and serves our microcontroller customers to complete their solutions. Our memory business represented 6.3% of Microchip's overall revenue in the June quarter.

轉向我們的內存業務，該業務由我們的 Serial E-Squared 內存產品以及我們的 SuperFlash 內存產品組成，該業務連續增長 0.7%。我們繼續以嚴謹的方式經營我們的內存業務，保持始終如一的高盈利能力，支持我們的許可業務，並為我們的微控制器客戶提供完善的解決方案。我們的內存業務佔 Microchip 六月季度總收入的 6.3%。

Now a short update about Supertex and where we are in the integration process. Effective July 1, Supertex operations, spanning from order entry to manufacturing to shipments to billings, are fully integrated into Microchip's business systems. Supertex had a small subscale assembly and test operation in Sunnyvale, California, for a small percentage of their manufacturing. The Sunnyvale operations have been closed and the manufacturing done there has been absorbed into Microchip's Thailand facility.

現在簡要更新一下 Supertex 以及我們在集成過程中的位置。自 7 月 1 日起，Supertex 的業務從訂單輸入到製造再到發貨再到計費，都已完全集成到 Microchip 的業務系統中。 Supertex 在加利福尼亞州的桑尼維爾有一個小規模的組裝和測試操作，只佔其製造的一小部分。 Sunnyvale 的業務已經關閉，在那裡完成的製造工作已被 Microchip 的泰國工廠吸收。

Supertex has a leased six-inch fab in San Jose, California.

Supertex 在加利福尼亞州聖何塞租用了一座 6 英寸的晶圓廠。

Prior to our acquisition, Supertex had already started to qualify many of their products at foundries for better competitiveness. After completing a detailed assessment, we have begun qualifying at Microchip's fabs some of the products that were planned for movement to the foundries. We're also studying the long-term scalability and cost effectiveness of Supertex six-inch leased fab and expect to conclude our study by the end of this quarter.

在我們收購之前，Supertex 已經開始在代工廠對他們的許多產品進行認證，以獲得更好的競爭力。在完成詳細的評估後，我們已經開始在 Microchip 的晶圓廠中對一些計劃轉移到代工廠的產品進行認證。我們還在研究 Supertex 六英寸租賃晶圓廠的長期可擴展性和成本效益，並希望在本季度末完成我們的研究。

Supertex subcontracts 100% of its assembly and over 60% of its test volume. We have identified and started transferring some of the products currently outsourced by Supertex into our internal assembly and test operations in Thailand. We are also studying the long-term scalability and cost effectiveness of Supertex Hong Kong test facility and expect to conclude our study by the end of this quarter.

Supertex 將 100% 的組裝和超過 60% 的測試量分包出去。我們已經確定並開始將一些目前由 Supertex 外包的產品轉移到我們在泰國的內部組裝和測試業務中。我們還在研究 Supertex Hong Kong 測試設施的長期可擴展性和成本效益，並希望在本季度末完成我們的研究。

As I had mentioned in our last conference call, we are retaining Supertex sales and applications engineers and have begun cross-training them, as well as our existing sales force, so that we can find revenue synergies. We have also begun to combine the channel partners of both companies with the goal to achieve expanded distribution capabilities for the products of both companies.

正如我在上次電話會議中提到的那樣，我們正在保留 Supertex 銷售和應用工程師，並開始對他們以及我們現有的銷售人員進行交叉培訓，以便我們能夠找到收入協同效應。我們也開始聯合兩家公司的渠道合作夥伴，目標是擴大兩家公司產品的分銷能力。

Lastly, a short update on our acquisition of Taiwan-based ISSC, which we announced on May 22. As you saw in our press release of July 14, we completed a very successful tender offer and now have majority ownership of ISSC. We purchased 83.5% of the outstanding shares as part of the tender offer and have another 10.5% of outstanding shares pledged to us that we will buy when they are past a lockup agreement that expires on November 27, 2014.

最後，我們在 5 月 22 日宣布了我們收購台灣 ISSC 的簡短更新。正如您在 7 月 14 日的新聞稿中看到的那樣，我們完成了非常成功的要約收購，現在擁有 ISSC 的多數股權。作為要約收購的一部分，我們購買了 83.5% 的流通股，並有另外 10.5% 的流通股質押給我們，我們將在它們超過 2014 年 11 月 27 日到期的鎖定協議時購買。

The full merger will take place sometime in December 2014, but we are moving ahead full speed with integration planning and integration, as the full merger is a mere formality at this point. Since the announcement of the acquisition on May 22, we have spent considerable time understanding ISSC's business, organization, and systems. We have begun developing detailed integration plans and have begun execution of some of these plans this quarter.

全面合併將在 2014 年 12 月的某個時候進行，但我們正在全速推進整合規劃和整合，因為此時全面合併只是形式。自 5 月 22 日宣布收購以來，我們花費了大量時間了解 ISSC 的業務、組織和系統。我們已經開始製定詳細的整合計劃，並在本季度開始執行其中一些計劃。

In regards to manufacturing, ISSC outsources 100% of its manufacturing. The fab processes used are more advanced than what Microchip has in house and will therefore remain at the professional foundries where they run, which happen to be the same foundries that Microchip also runs at. We're doing a make-versus-buy analysis and evaluating whether some of the assembly and tests currently outsourced by ISSC can be brought into our internal assembly and test operation.

在製造方面，ISSC 將 100% 的製造外包。所使用的晶圓廠工藝比 Microchip 內部的工藝更先進，因此將保留在它們運行的專業代工廠，而這些代工廠恰好是 Microchip 也運行的同一代工廠。我們正在進行製造與購買分析，並評估目前由 ISSC 外包的一些組裝和測試是否可以納入我們的內部組裝和測試操作。

Microchip will transition all ISSC backend manufacturing systems, like wafer ordering, assembly and test management, shipment, and warehouses, to our systems. We estimate that this transition will be complete sometime in the fourth calendar quarter of 2014, at which time all ISSC products will be shipping from Microchip's business systems.

Microchip 會將所有 ISSC 後端製造系統（如晶圓訂購、組裝和測試管理、裝運和倉庫）轉移到我們的系統。我們估計，這一過渡將在 2014 年第四季度的某個時間完成，屆時所有 ISSC 產品都將從 Microchip 的業務系統發貨。

Regarding sales and applications, we are planning to retain ISSC's sales and applications engineers and will cross-train them, as well as our existing sales force, so that we can find revenue synergies.

在銷售和應用方面，我們計劃保留 ISSC 的銷售和應用工程師，並對他們以及我們現有的銷售人員進行交叉培訓，以便我們找到收入協同效應。

We also plan to combine the distribution network for the two companies. A few of the distributors for the two companies are the same, while most are different, as almost all of the ISSC business was done in Taiwan and China. Our goal is to achieve significantly expanded distribution capabilities for ISSC's products.

我們還計劃合併兩家公司的分銷網絡。兩家公司的一些分銷商是相同的，而大多數是不同的，因為幾乎所有的 ISSC 業務都是在台灣和中國大陸完成的。我們的目標是顯著擴大 ISSC 產品的分銷能力。

Now let me pass it to Steve for some general comments about our business, as well as our guidance going forward. Steve?

現在讓我將它傳遞給史蒂夫，以獲得關於我們業務的一些一般性評論，以及我們未來的指導。史蒂夫?

Thank you, Ganesh, and good afternoon, everyone.

謝謝 Ganesh，大家下午好。

Today, I would like to first reflect on the results of the fiscal first quarter of 2015, then I will comment on the progress of some of our acquisitions, and then provide guidance for the fiscal second quarter of 2015.

今天，我想先回顧一下2015財年第一季度的業績，然後我將評論我們的一些收購進展，然後對2015財年第二季度提供指導。

We are very pleased with our execution in the June quarter. All of the non-GAAP financial metrics, like net sales, gross margin percentage, operating expense percentage, operating profit percentage, and earnings per share, were better than the midpoint of our guidance. Without including Supertex results, our non-GAAP gross margin was 60%, achieving a milestone again, and our non-GAAP operating profit was 33.5%.

我們對我們在六月季度的執行感到非常滿意。所有非公認會計準則財務指標，如淨銷售額、毛利率、營業費用百分比、營業利潤百分比和每股收益，都好於我們指導的中點。不包括 Supertex 業績，我們的非公認會計準則毛利率為 60%，再次達到里程碑，我們的非公認會計準則營業利潤為 33.5%。

We also made excellent progress on improving Supertex operating results. Supertex non-GAAP gross margin was 54.5% and non-GAAP operating profit was 24.5%. I remind you that Supertex standalone non-GAAP operating margin in the full calendar-year 2013, before the acquisition, was 17.2%.

我們在改善 Supertex 經營業績方面也取得了顯著進展。 Supertex 非美國通用會計準則毛利率為 54.5%，非美國通用會計準則營業利潤為 24.5%。我提醒您，Supertex 在 2013 年整個日曆年（在收購之前）的獨立非公認會計原則營業利潤率為 17.2%。

Combining Supertex results, our consolidated non-GAAP gross margin was 59.8% and non-GAAP operating profit was 33.2%, and we are making excellent progress towards our long-term goal of 35% operating profit. Consolidated non-GAAP earnings per share was a record $0.68 and was $0.02 better than the midpoint of our guidance.

結合 Supertex 的業績，我們的綜合非 GAAP 毛利率為 59.8%，非 GAAP 營業利潤為 33.2%，我們正在朝著 35% 營業利潤的長期目標邁進。合併非公認會計原則每股收益為創紀錄的 0.68 美元，比我們指導的中點高 0.02 美元。

We also made many new all-time records. Total net sales were an all-time record. In microcontrollers, 8-, 16-, and 32-bit microcontrollers all made new records individually and collectively. Analog product sales also achieved new all-time record. Geographically, our net sales in Americas and Asia each made all-time new record, and in the non-GAAP financials, our gross margin dollars, operating profit dollars, net income dollars, and earnings per share all made fresh all-time records in the quarter.

我們還創造了許多新的歷史記錄。總淨銷售額創歷史新高。在微控制器中，8 位、16 位和 32 位微控制器都單獨和集體創造了新的記錄。模擬產品銷售也創下歷史新高。從地域上看，我們在美洲和亞洲的淨銷售額均創下歷史新高，在非公認會計準則財務方面，我們的毛利率、營業利潤、淨收入和每股收益均創下歷史新高季度。

Last, but not the least, the June quarter was our 95th consecutively profitable quarter. I want to thank all the employees of Microchip for their contribution in making this an outstanding quarter.

最後但並非最不重要的一點是，六月季度是我們連續第 95 個季度盈利。我要感謝 Microchip 的所有員工，感謝他們為使本季度成為一個出色的季度所做的貢獻。

Now on April 1, we closed the acquisition of Supertex. Ganesh highlighted the status of our integration on Supertex. We have obviously honed our skills and experience through several very successful acquisitions.

現在在 4 月 1 日，我們完成了對 Supertex 的收購。 Ganesh 強調了我們在 Supertex 上的整合狀態。通過幾次非常成功的收購，我們顯然已經磨練了我們的技能和經驗。

Supertex contributed $0.013 accretion for the last quarter, which is above the $0.01 accretion that we had guided. Now $0.003 may be a small difference on Microchip numbers, but it was a substantial bead on the Supertex contribution.

Supertex 在上一季度貢獻了 0.013 美元的增長，高於我們指導的 0.01 美元增長。現在 0.003 美元可能與 Microchip 的數字相差很小，但它對 Supertex 的貢獻來說是一個巨大的珠子。

Now I will provide guidance for the fiscal second quarter of 2015. We are seeing a seasonally normal business environment with strength in many of our end markets, like industrial, automotive, housing, consumer electronics, and personal computing. We are seeing exceptional strength in some of our new products and technologies, which are growing at double-digit percentages sequentially.

現在，我將為 2015 財年第二季度提供指導。我們看到了一個季節性正常的商業環境，在我們的許多終端市場，如工業、汽車、住房、消費電子產品和個人計算，都表現強勁。我們看到我們的一些新產品和技術具有非凡的實力，這些產品和技術連續以兩位數的百分比增長。

As a result, our product delivery lead times have stretched out, and we are selectively capacity constrained in fab, wafer sort, assembly, and test operations, particularly on our newest products and technologies.

結果，我們的產品交付週期延長了，我們在晶圓廠、晶圓分類、組裝和測試操作方面受到選擇性的產能限制，特別是在我們最新的產品和技術方面。

Our inventory of 108 days is below our targeted level of 115 and is expected to go even lower this quarter. So we are ramping all of our factories, but we are limited by equipment lead times. We have increased our planned capital expenditures for fiscal-year 2015 to $175 million.

我們 108 天的庫存低於我們 115 天的目標水平，預計本季度還會更低。所以我們正在擴大我們所有的工廠，但我們受到設備交貨時間的限制。我們已將 2015 財年的計劃資本支出增加到 1.75 億美元。

We also, just today, posted a Dear Customer letter on our website, www.microchip.com, informing our customers about the business environment, our capacity constraints, and our lead times. So you may want to look at that letter.

就在今天，我們還在我們的網站 www.microchip.com 上發布了一封尊敬的客戶信函，告知我們的客戶有關業務環境、產能限制和交貨時間的信息。所以你可能想看看那封信。

We're also mindful of summer quarter in Europe that is usually sequentially down.

我們還注意到歐洲的夏季季度通常會連續下降。

So taking all these factors into account, we expect the September quarter net sales to be up 5.4% to 8.4% sequentially. This includes about $18 million of sales from ISSC, which are on our clock from July 18 to the end of the quarter.

因此，考慮到所有這些因素，我們預計 9 月季度淨銷售額將環比增長 5.4% 至 8.4%。這包括來自 ISSC 的約 1800 萬美元的銷售額，這是我們從 7 月 18 日到本季度末的時鐘。

So as Ganesh said, Microchip owns 83.5% of the shares of ISSC. Microchip will include the ISSC sales from July 18 onwards in its financial results and consolidate them line by line. We will then back out the profits for the minority interest.

所以正如 Ganesh 所說，Microchip 擁有 ISSC 83.5% 的股份。 Microchip 將從 7 月 18 日起將 ISSC 銷售納入其財務業績，並逐行合併。然後，我們將收回少數股權的利潤。

I would also like to highlight that ISSC's revenue recognition through distribution is currently on a sell-in basis. As we integrate their business into Microchip's business systems, we will change the revenue recognition from distribution to a sellthrough basis upon modifying the contractual relationships we have with the distributors. We believe that this will happen in the December quarter and we will share the accounting impact of this with you in the next earnings call.

我還想強調的是，ISSC 通過分銷確認收入目前是在賣出的基礎上。隨著我們將他們的業務整合到 Microchip 的業務系統中，我們將在修改我們與分銷商的合同關係後，將收入確認從分銷更改為銷售基礎。我們相信這將在 12 月季度發生，我們將在下一次財報電話會議中與您分享這對會計的影響。

Continuing on the guidance, on a non-GAAP basis we expect our gross margin to be between 59.2% and 59.6% of sales. The short-term gross margin is slightly negatively impacted from the consolidation of Supertex, as well as ISSC. ISSC gross margin is currently about 45%. Longer term, we expect to improve Supertex, as well as ISSC, gross margin to Microchip levels.

繼續指導，在非公認會計原則的基礎上，我們預計我們的毛利率將在銷售額的 59.2% 至 59.6% 之間。短期毛利率受到 Supertex 和 ISSC 合併的輕微負面影響。 ISSC目前的毛利率約為45%。從長遠來看，我們預計 Supertex 和 ISSC 的毛利率將提高到 Microchip 的水平。

We expect operating expenses to be between 26.3% and 26.7% of sales. We expect operating profit to be between 32.5% and 33.3% of sales, again slightly negatively impacted by Supertex and ISSC short term.

我們預計運營費用將佔銷售額的 26.3% 至 26.7%。我們預計營業利潤將在銷售額的 32.5% 至 33.3% 之間，再次受到 Supertex 和 ISSC 短期的輕微負面影響。

Longer term, we expect Supertex and ISSC's operating margins to be similar to those of Microchip's.

從長遠來看，我們預計 Supertex 和 ISSC 的營業利潤率將與 Microchip 的相似。

We expect non-GAAP earnings per share to be between $0.70 and $0.74 per share. This includes about $0.015 accretion from Supertex and about $0.01 accretion from ISSC.

我們預計非 GAAP 每股收益將在每股 0.70 美元至 0.74 美元之間。這包括來自 Supertex 的約 0.015 美元的增值和來自 ISSC 的約 0.01 美元的增值。

Given all the complications of accounting for the acquisitions, including amortization of intangibles, restructuring charges, and inventory writeup on acquisitions, Microchip will continue to provide guidance and track its results on a non-GAAP basis. We believe that non-GAAP results provide a more meaningful comparison to prior quarters and we request that the analysts continue to report the non-GAAP estimates to First Call.

鑑於收購會計的所有復雜性，包括無形資產的攤銷、重組費用和收購的庫存增記，Microchip 將繼續提供指導並在非公認會計原則的基礎上跟踪其結果。我們認為，非公認會計原則的結果與前幾個季度相比提供了更有意義的比較，我們要求分析師繼續向 First Call 報告非公認會計原則的估計。

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

有了這個，接線員，請您投票詢問問題嗎？

(Operator Instructions). Chris Caso, Susquehanna Financial Group.

（操作員說明）。克里斯·卡索，薩斯奎漢納金融集團。

I guess our first question, perhaps we could talk about the production constraints you mentioned in your prepared remarks. Does this imply that there is some business that you are not able to address right now? Are you meeting the customer delivery requests in general on some of these products that have stretched out?

我想我們的第一個問題，也許我們可以談談你在準備好的評論中提到的生產限制。這是否意味著您現在無法處理某些業務？您是否總體上滿足了客戶對其中一些已延長的產品的交付要求？

And as a follow-on to that, if you could talk about the steps you can take, when lead times start to stretch out and you have seen these constraints in the past, how you make sure that customers aren't ordering more than they need?

作為對此的後續，如果您可以談論您可以採取的步驟，當交貨時間開始延長並且您過去已經看到這些限制時，您如何確保客戶的訂購量不超過他們需要？

So definitely, we are leaving out some revenue due to supply constraints in the September quarter. We cannot really dollarize that number because we don't really know what other additional customer demand will come in for the fiscal Quarter 2 and what product mix that demand will come in.

因此，由於 9 月季度的供應限制，我們肯定會遺漏一些收入。我們無法真正將這個數字美元化，因為我們真的不知道第二財季會有哪些其他額外的客戶需求以及該需求將進入什麼產品組合。

In fact, I mentioned that we posted a Dear Customer letter on our website today, and this letter will start going out to our customers immediately, and hopefully we will have a much better idea of the supply constraints in the coming weeks.

事實上，我提到我們今天在我們的網站上發布了一封親愛的客戶信，這封信將立即開始發送給我們的客戶，希望我們能在未來幾週內更好地了解供應限制。

At the same time, we are also working actually quite hard to improve the supply in expediting equipment from our vendors, so an accurate estimate would be difficult on a short-term basis, but we are definitely leaving out some revenue on the table.

同時，我們實際上也在非常努力地改善供應商的加速設備供應，因此在短期內很難準確估計，但我們肯定會遺漏一些收入。

The obvious question can be that are we losing any designs or market share because of that? Our microcontroller revenue in the June quarter was up 14.5% versus the year-ago quarter. As you know from really any market growth numbers, that far exceeds any market data for growth of microcontrollers. So overall, we are gaining market share and actually gaining substantial market share.

顯而易見的問題是，我們是否因此而失去任何設計或市場份額？與去年同期相比，我們在 6 月季度的微控制器收入增長了 14.5%。正如您從任何市場增長數據中知道的那樣，這遠遠超過了微控制器增長的任何市場數據。所以總的來說，我們正在獲得市場份額，並且實際上獲得了可觀的市場份額。

The products that we have constraints on are very special products with unique features and very high growth. The products that actually -- these products are killing the competition. The new designs will be in production in about a year or longer for anybody who is thinking of doing a new design with these products.

我們限制的產品是非常特殊的產品，具有獨特的功能和非常高的增長。實際上，這些產品正在扼殺競爭。對於任何想用這些產品進行新設計的人來說，新設計將在大約一年或更長時間內投入生產。

So short-term constraints, I don't think, are going to impact design wins because our customers know our track record for the last 25 years, and these are shorter-term problems and we will solve them quickly.

因此，我認為短期限制不會影響設計的成功，因為我們的客戶知道我們過去 25 年的業績記錄，這些都是短期問題，我們會迅速解決它們。

Okay, thank you. As a follow-up with respect to the gross margin, and I guess with -- you have given us the ISSC margins so we can figure out the impact of that on your margin guidance. But for the underlying Microchip margin, with production increasing next quarter, could you talk to us about how that works its way through the income statement, what sort of benefit you see there, and perhaps how long you'd expect that benefit to continue with the inventory down below your target levels? I suppose this wouldn't be something that you would get back to normal in just a quarter.

好的謝謝你。作為毛利率的後續行動，我猜你已經給了我們 ISSC 利潤率，所以我們可以弄清楚它對你的利潤率指導的影響。但是對於潛在的 Microchip 利潤率，隨著下個季度產量的增加，您能否與我們談談這如何在損益表中發揮作用，您在那裡看到什麼樣的好處，以及您預計這種好處會持續多長時間？庫存低於您的目標水平？我想這不會是你在短短四分之一內就能恢復正常的事情。

As I mentioned, the inventory this quarter actually will decline further, so actually taking inventory from the balance sheet and adding to your cost of goods sold. So I would say that core Microchip margins are in the same range where they were last quarter, plus some or minus some, but usually on the good side. And then, they are somewhat negatively impacted by integrating a 45% margin on about $18 million sales from ISSC.

正如我所提到的，本季度的庫存實際上會進一步下降，因此實際上從資產負債表中提取庫存並增加您的銷售成本。所以我想說，核心 Microchip 的利潤率與上一季度的範圍相同，加或減一些，但通常是好的。然後，他們受到 ISSC 約 1800 萬美元銷售額的 45% 利潤率的負面影響。

And there is Supertex effect also because their margins at 54.5% are also slightly lower than Microchip, but they were in the numbers last quarter also and we're also picking up a fair amount of old inventory from Supertex that we are shipping now because of first in, first out.

並且還有 Supertex 效應，因為它們 54.5% 的利潤率也略低於 Microchip，但它們也在上個季度的數字中，而且我們還從 Supertex 那裡獲得了相當數量的舊庫存，我們現在正在發貨，因為先進先出。

So there are a large number of moving parts, but overall margin is in excellent shape.

所以有大量的活動部件，但整體餘量狀況良好。

Right, but as the production increases, once the capacity is in place, I guess that would suggest better fixed-cost absorption, improvement to margin, once that occurs?

是的，但是隨著產量的增加，一旦產能到位，我想這意味著更好的固定成本吸收，提高利潤率，一旦發生？

Yes, the answer to that will be correct. Yes.

是的，答案是正確的。是的。

Great, thank you.

太好了謝謝。

Jim Covello, Goldman Sachs.

吉姆·科維羅，高盛。

Thanks so much for taking the question. I appreciate it. Congratulations on the good results. Question on the equipment. You mentioned some equipment has extended lead times. Are you referring specifically to testing equipment or packaging equipment? Could you give us a little more perspective there?

非常感謝您提出這個問題。我很感激。祝賀取得好成績。關於設備的問題。你提到一些設備延長了交貨時間。您是指測試設備還是包裝設備？你能給我們更多的視角嗎？

It is predominantly fab and test. There is assembly also, but there are a few challenges, but it is -- the majority of that is really the fab and test. Test in two places, wafer test, as well as final test.

它主要是晶圓廠和測試。也有組裝，但有一些挑戰，但它是——其中大部分實際上是晶圓廠和測試。在兩個地方進行測試，晶圓測試，以及最終測試。

That's helpful, thank you. And then, do you get the sense that your competitors are experiencing the same sort of issues when you talk to your customers or do you think your situation is a little bit unique?

這很有幫助，謝謝。然後，當您與客戶交談時，您是否感覺到您的競爭對手正在經歷同樣的問題，或者您是否認為您的情況有點獨特？

We are not focused on our competitors. We are focused on our customers. I don't really know what competitors are experiencing.

我們並不專注於我們的競爭對手。我們專注於我們的客戶。我真的不知道競爭對手正在經歷什麼。

Our growth rate is phenomenal. Some of the numbers I have seen on microcontroller growth rates and analog growth rates from some of the competitors who have announced in the earnings season, and sometime you have to look at the numbers rolling four-quarter cumulative over the similar four quarters prior because single quarter can play games. Everybody has different seasonality.

我們的增長率是驚人的。我從一些在財報季宣布的競爭對手那裡看到了一些關於微控制器增長率和模擬增長率的數字，有時你必須查看前四個季度的累計數字，因為單季可以玩遊戲。每個人都有不同的季節。

When you are shipping from -- when you are building product and shipping from inventory, it is the totality of it that counts. Our numbers are so far above the competition. I think the average, when I did the chart yesterday, that four-quarter over prior four-quarter comparison, the average of that was about 4.5%. And that number for Microchip is 15.2%.

當您發貨時——當您構建產品並從庫存發貨時，重要的是它的整體。我們的數字遠遠高於競爭對手。我認為，當我昨天做圖表時，四個季度與前四個季度的比較平均值約為 4.5%。 Microchip 的這個數字是 15.2%。

So, we are doing phenomenal in our products, in our growth, in microcontroller, in analog, and that was not expected a year ago that we will have those kind of growth rates. And as a result, with long lead times and equipment, we are having some capacity challenges.

因此，我們在產品、增長、微控制器、模擬方面都取得了驚人的成績，而一年前我們並沒有預料到我們會有這樣的增長率。因此，由於交貨時間和設備較長，我們面臨著一些產能挑戰。

Very helpful. Thank you so much. Good luck.

非常有幫助。太感謝了。祝你好運。

Craig Hettenbach, Morgan Stanley.

克雷格·海滕巴赫，摩根士丹利。

This is [Anai] calling in for Craig. I had a question on ISSC. I think you indicated that your guide has $18 million in revenue. What is the related OpEx to that? And as you stop integrated Supertex, any negative or [posted] the prices that have come along?

這是 [Anai] 打電話給 Craig。我有一個關於 ISSC 的問題。我認為您表示您的指南有 1800 萬美元的收入。與此相關的 OpEx 是什麼？當您停止集成 Supertex 時，是否會出現任何負面或 [張貼] 價格？

So I think you can calculate that in dollars, but ISSC's current model is 45% gross margin, 26% expenses, 19% operating profit. That is what they're doing standalone and you can do the math on it, and we will improve it substantially on our clock, but always take some time.

所以我認為你可以用美元來計算，但 ISSC 目前的模型是 45% 的毛利率、26% 的費用、19% 的營業利潤。這就是他們獨立做的事情，你可以對其進行數學計算，我們將在我們的時鐘上大幅改進它，但總是需要一些時間。

Got it. And any negative and posted surprises over the last quarter on Supertex?

知道了。 Supertex 上一季度是否有任何負面和發布的驚喜？

No, we did outstandingly. We beat our revenue guidance. We beat our internal gross margin. We did very well in managing expenses and our attrition was 30% better than what we guided, $0.013 versus $0.01. So you have to divide that by Microchip's 223 million shares, so the numbers become miniscule, but standalone, we did very well on what we set out to do.

不，我們做得非常出色。我們超過了我們的收入指導。我們超過了我們的內部毛利率。我們在管理費用方面做得很好，我們的減員比我們指導的要好 30%，0.013 美元對 0.01 美元。因此，您必須將其除以 Microchip 的 2.23 億股，所以這些數字變得微不足道，但獨立起來，我們在我們打算做的事情上做得很好。

Got it. That's helpful. And for my follow-up, automotive has been a growth engine, both for analog and MCU. Can you just touch upon the opportunities you are seeing and any new product introductions towards automotive, especially on the 32-bit side?

知道了。這很有幫助。在我的後續研究中，汽車一直是模擬和 MCU 的增長引擎。您能否談談您所看到的機會以及針對汽車的任何新產品介紹，尤其是在 32 位方面？

Go ahead, Ganesh.

來吧，甘尼什。

We play in a broad range of automotive applications. We're not focused on any single item, engine control or whatever.

我們涉足廣泛的汽車應用領域。我們不專注於任何單個項目、引擎控製或其他任何東西。

In many of the applications, we are the main microcontroller. Those tend to be associated with the body electronics, some of the networking inside of the car. In many of the other applications, we are the auxiliary microcontroller. There is somebody else that is micro which is a large high-performance microcontroller. So, there is no specific single application that is driving the growth.

在許多應用中，我們是主要的微控制器。這些往往與車身電子設備、車內的一些網絡有關。在許多其他應用中，我們是輔助微控制器。還有其他人是微型的，它是一個大型高性能微控制器。因此，沒有特定的單一應用程序可以推動增長。

Clearly, we are winning more than our fair share of applications and the number of cars being built is growing as well. So those are the two factors driving the automotive part of our business.

顯然，我們贏得的應用數量超過了我們應得的份額，而且正在建造的汽車數量也在增長。因此，這是推動我們業務的汽車部分的兩個因素。

To add a little bit in the medical field for what Ganesh said, how broadly our products go into automotive and we are not really focused on really designing one product. If you go buy today an S-Class Mercedes, you will be buying 51 chips from Microchip. I think there are about 30 or so microcontrollers. There are some analog parts and there are some others. If you buy a Hyundai Genesis --

補充一點 Ganesh 所說的醫療領域，我們的產品在汽車領域的應用範圍有多廣，我們並沒有真正專注於真正設計一種產品。如果你今天去購買一輛 S 級梅賽德斯，你將購買 Microchip 的 51 個芯片。我認為大約有 30 個左右的微控制器。有一些模擬部分，還有一些其他的。如果您購買現代 Genesis--

54 of them in (multiple speakers)

其中 54 人在（多位發言者）

54 different chips from Microchip all over the car. So those are a couple of representative examples where we are not trying to win this by having one part that goes into the cars. We are trying to win it by having 30, 40 chips on a car from up and down the car, all different applications. And each of those applications be -- our part be the main part.

來自 Microchip 的 54 種不同芯片遍布整車。所以這些是幾個有代表性的例子，我們並沒有試圖通過讓一個零件進入汽車來贏得這一點。我們試圖通過在車上和車上安裝 30、40 個籌碼來贏得它，所有不同的應用程序。這些應用程序中的每一個都是 - 我們的部分是主要部分。

Got it, that's helpful. And congrats once again on a good quarter, guys.

明白了，很有幫助。再次祝賀你們取得了良好的成績，伙計們。

Harsh Kumar, Stephens Investment Bank.

斯蒂芬斯投資銀行的 Harsh Kumar。

First of all, congratulations. These are exceptional numbers. I just had a couple of really quick questions. Steve, in your press release and in your script, you mentioned you are seeing exceptional strength at some of your newer products. I am curious if you could just give us some more color. Are these the products you were recently buying or is this products that are out in the last three to four years?

首先，恭喜。這些是特殊的數字。我只是有幾個非常快速的問題。史蒂夫，在你的新聞稿和劇本中，你提到你在一些新產品中看到了非凡的實力。我很好奇你能不能給我們更多的顏色。這些是您最近購買的產品，還是過去三到四年推出的產品？

Let me make an attempt on it. The conventional wisdom has been that 8-bit microcontrollers is declining and all the customers want is really to convert to 32-bit microcontrollers.

讓我嘗試一下。傳統觀點認為 8 位微控制器正在下降，客戶真正想要的只是轉換為 32 位微控制器。

And you have heard us over the years. We have disagreed with that conventional wisdom for many years. Our 8-bit, as well as our 16-bit microcontroller, businesses have performed extremely well, in addition to our 32-bit microcontroller, and Ganesh talked about all of them. In fact, all three microcontroller types -- 8-, 16-, and 32-bit -- made new records in the quarter.

多年來，您已經聽到了我們的聲音。多年來，我們一直不同意這種傳統智慧。除了我們的 32 位微控制器之外，我們的 8 位微控制器和 16 位微控制器業務表現都非常出色，Ganesh 談到了所有這些微控制器。事實上，所有三種微控制器類型——8 位、16 位和 32 位——在本季度都創造了新的記錄。

Now, the growth in 16- and 32-bit microcontroller has been very good and a lot more predictable. We plan for those kind of high numbers and we are achieving it.

現在，16 位和 32 位微控制器的增長非常好，而且更加可預測。我們為這些高數字做計劃，我們正在實現它。

I think the surprise was on the 8-bit because nobody gives it the credit. When we talk to the Street, analysts, and investors, they are all interested asking about 32-bit.

我認為令人驚訝的是 8 位，因為沒有人相信它。當我們與華爾街、分析師和投資者交談時，他們都對 32 位感興趣。

We introduced a significant number of new 8-bit products, including a new very high efficiency 8-bit core and an entire family of products built on that core that can use C programming language like the higher-end 16- and 32-bit microcontrollers. We also introduced a category of core independent peripherals that allow our customers to run the peripheral functions without the microcontroller core engine running or without consuming the CPU power.

我們推出了大量新的 8 位產品，包括一個新的非常高效的 8 位內核以及基於該內核構建的整個系列產品，這些產品可以使用 C 編程語言，如高端 16 位和 32 位微控制器.我們還推出了一類獨立於內核的外圍設備，允許我們的客戶在不運行微控制器內核引擎或不消耗 CPU 功率的情況下運行外圍功能。

These have allowed our customers to expand the use of 8-bit microcontrollers dramatically and the demand for many of these products have really exploded. These products are built on our latest process technology, proprietary technology, that we run in our Gresham fab, so the demand for this process technology is growing at the rate of 15% to 20% per quarter, starting from a fairly large base.

這些使我們的客戶能夠顯著擴展 8 位微控制器的使用範圍，並且對其中許多產品的需求確實呈爆炸式增長。這些產品基於我們在 Gresham 工廠運行的最新工藝技術、專有技術，因此對這種工藝技術的需求從相當大的基數開始以每季度 15% 到 20% 的速度增長。

The success of these and other 8-bit microcontroller products is unprecedented. It is unprecedented even measuring at a very successful microcontroller track record, even against that very successful track record at Microchip. We're also seeing that the entire competitive threat of trying to insert the M0 Cortex 32-bit ARM core into the 8-bit microcontroller socket really has petered out. These products had 32-bit engine, but otherwise no peripherals or features. They were largely bait-and-switch kind of products and customers have seen the hollow offering.

這些和其他 8 位微控制器產品的成功是前所未有的。即使以非常成功的微控制器跟踪記錄進行衡量，即使與 Microchip 非常成功的跟踪記錄相比，它也是前所未有的。我們還看到，試圖將 M0 Cortex 32 位 ARM 內核插入 8 位微控制器插槽的整個競爭威脅已經逐漸消失。這些產品有 32 位引擎，但沒有外設或功能。它們主要是誘餌和轉換類型的產品，客戶已經看到了空洞的產品。

The result is that our 8-bit microcontroller business is extremely strong, making new records, and currently capacity constrained, but hopefully not for very long because we are growing capacity rapidly.

結果是我們的 8 位微控制器業務非常強大，創造了新的記錄，而且目前的產能受到限制，但希望不會持續很長時間，因為我們的產能正在迅速增長。

Appreciate it, Steve. That was very helpful. And then as my follow-up, if I can ask you with the new additions to your Microchip business, Supertex and ISSC, perhaps maybe help us think about how we should think of the seasonality. Is it still largely unchanged or will you see more of a consumer affect now in the December quarter?

欣賞它，史蒂夫。這很有幫助。然後作為我的後續行動，如果我可以向您詢問您的 Microchip 業務 Supertex 和 ISSC 的新增內容，也許可以幫助我們思考我們應該如何看待季節性。它仍然基本沒有變化，還是您會在 12 月季度看到更多的消費者影響？

Every acquisition modifies it a little bit; these acquisitions are not extremely large, but ISSC is very consumer-ish and it will change the seasonality a little bit. Supertex does not change it as much. They are similar to ours, much more industrial. SMSC did change the seasonality a little bit. They were a little more on PCs than we were, yes, so these all have impacts.

每次收購都會對其進行一點修改；這些收購規模不是很大，但 ISSC 非常適合消費者，它會稍微改變季節性。 Supertex 並沒有改變太多。它們與我們的相似，更具工業性。 SMSC 確實稍微改變了季節性。是的，它們在 PC 上的使用比我們多一點，所以這些都會產生影響。

Fair enough, guys. Thank you and congratulations again.

很公平，伙計們。謝謝你，再次祝賀你。

JoAnne Feeney, ABR Investment Strategy.

JoAnne Feeney，ABR 投資策略。

Congrats, guys, on the nice quarter and the guidance. Follow-up question on the capacity constraint. So it sounds like from your last answer there that mostly this is hitting on the 8-bit side. Is it not possible for you at this point to change the mix and shift some of your capacity over to that which is being constrained? Or are you seeing a broader-based constraint that is really hitting all of your products?

恭喜，伙計們，在美好的季度和指導。關於容量限制的後續問題。因此，從您那裡的最後一個答案聽起來，這主要是在 8 位方面。在這一點上，您是否不可能改變組合併將您的一些能力轉移到受到限制的能力？或者您是否看到了一個真正影響您所有產品的更廣泛的約束？

And if you could just clarify, really, where those constraints are kicking in and why mix can't be changed or why it is not worthwhile to do that at this point, that would be helpful.

如果你能澄清一下，真的，這些限制是從哪裡開始的，為什麼不能改變混合，或者為什麼現在不值得這樣做，那將是有幫助的。

Many of the products that are growing 15% to 20% sequentially are built on our latest advanced technology, so you can't really use the older capacity for these. We have to add new capacity.

許多連續增長 15% 到 20% 的產品都是基於我們最新的先進技術構建的，因此您不能真正將舊容量用於這些產品。我們必須增加新的容量。

Within the products itself, obviously we're changing mix to build the products which are stronger, but I think they are all largely doing very well. We are constrained overall on the products on their technology. So even after changing the mix within, the entire number of wafers we got to run on that technology are 20%, 30% higher than, really, what I can run today.

在產品本身中，顯然我們正在改變組合以構建更強大的產品，但我認為它們在很大程度上都做得很好。我們總體上受限於他們的技術產品。因此，即使在改變內部組合之後，我們在該技術上運行的晶圓總數也比我今天可以運行的晶圓數量高出 20%、30%。

Okay, that's helpful.

好的，這很有幫助。

And we just made an increase just this last month. There is another one happening on August 1, which is tomorrow. We increased the wafer starts. There is another one scheduled for October 1, another one scheduled for January 1, so we're bringing these new equipment, adding it, and some of that has been in the works for months, if not quarters, and we have been constantly adding.

上個月我們剛剛增加了。還有一個發生在 8 月 1 日，也就是明天。我們增加了晶圓啟動。還有一個計劃在 10 月 1 日，另一個計劃在 1 月 1 日，所以我們帶來了這些新設備，添加它，其中一些已經工作了幾個月，如果不是幾個季度，我們一直在不斷添加.

And we keep thinking that the demand will moderate, but from a fairly large base, the demand has continued, which is really the strength of the products. Everybody bad-mouths 8-bit and competitors have backed off and everybody wants to sell a core tax core. We defied that conventional wisdom. We were right. We are so successful at that, 8-bit is adding the largest dollar revenue in growth. And we are the only man standing, almost.

我們一直認為需求會緩和，但從相當大的基數來看，需求一直在持續，這才是產品的真正優勢所在。每個人都在說 8 位的壞話，競爭對手都退縮了，每個人都想出售核心稅收核心。我們挑戰了這種傳統智慧。我們是對的。我們在這方面非常成功，8 位正在增加最大的美元收入增長。我們幾乎是唯一站著的人。

That's really helpful. If I could just get a follow-up in on the 16-bit side, obviously that has grown very strongly, as you said in the trailing 12 months year over year. I am wondering if you could elaborate on what you think the pause was. Is this just a timing issue of particularly design wins that aren't starting for a bit or is this a specific end market that might be weak or a specific application, and why you're confident that is going to pick up again in this quarter.

這真的很有幫助。如果我能在 16 位方面進行後續跟進，顯然它已經非常強勁地增長，正如你在過去 12 個月中所說的那樣。我想知道您是否可以詳細說明您認為暫停是什麼。這只是一個時間問題，特別是設計勝利還沒有開始，還是這是一個可能很弱的特定終端市場或特定應用程序，以及為什麼你有信心在本季度再次回升.

There are small changes quarter to quarter when people's timings, et cetera, of when they want to purchase may be adjusted.

當人們想要購買的時間等可能會調整時，每個季度都會有微小的變化。

But if you go back and look, it's had a very strong quarter before that. We're expecting a strong quarter. So what falls into any one 90-day period isn't reflective of the business. I think if you look at it over a 12-month period of time, it evens all that out, and so we see the design wins, we see the customers ramping, we are confident of the product line going forward.

但如果你回過頭來看，在此之前它有一個非常強勁的季度。我們期待一個強勁的季度。因此，任何一個 90 天期限都不能反映業務。我認為，如果您在 12 個月的時間內觀察它，一切都會變得平衡，因此我們看到設計獲勝，我們看到客戶數量激增，我們對產品線的發展充滿信心。

We have seen the same thing on 32-bit. 32-bit did very well last quarter, but if you look at the quarter before, 32-bit had a very low single-digit growth. So these smaller product lines, 16, 32, although they are fairly sizable, their growth rate doesn't seem to match the corporate and the seasonality.

我們已經在 32 位上看到了同樣的情況。 32 位上個季度的表現非常好，但如果你看前一個季度，32 位的個位數增長非常低。所以這些較小的產品線，16、32，雖然它們相當大，但它們的增長率似乎與公司和季節性不匹配。

Overall, both are doing very well year over year, but quarters are uncertain. So on 16-bit, our current quarter backlog is up by double digits. I am not saying it will end there, but I think it will end very well.

總體而言，兩者的同比表現都非常好，但季度不確定。所以在 16 位上，我們當前的季度積壓量增加了兩位數。我不是說它會在那裡結束，但我認為它會很好地結束。

That's very helpful. Thanks for the clarity.

這很有幫助。感謝您的澄清。

William Stein, SunTrust.

威廉斯坦，SunTrust。

Thanks for taking my question. I'm hoping you can give us a little bit more granularity or detail to try to understand the degree to which these lead times -- the stretch lead times or the storages are felt broadly across the portfolio. Is it a relatively narrow number of products that are affected or is it broadly speaking? And maybe if you can quantify to what degree you have seen lead times stretch. Thank you.

感謝您提出我的問題。我希望你能給我們更多的粒度或細節，以嘗試了解這些交貨時間的程度——延長交貨時間或存儲在整個投資組合中的廣泛感受。是受影響的產品數量相對較少，還是泛泛而談？也許如果你能量化你看到的交貨時間延長到什麼程度。謝謝你。

The letter we posted today, it says our lead times are from six weeks to 18 weeks, plus, and Microchip sells over 100,000 SKUs, so it's really all over the place. Anytime people want a headline number, our lead times are X weeks. There's really no such thing. When you have 100,000 SKUs, there are parts that you can get off the shelf because in any mix situation, there is always some parts available.

我們今天發布的信中說，我們的交貨時間從 6 周到 18 週不等，而且 Microchip 銷售了超過 100,000 個 SKU，所以它真的無處不在。任何時候人們想要一個標題號碼，我們的交貨時間是 X 週。真的沒有這種事。當您擁有 100,000 個 SKU 時，有些零件可以下架，因為在任何混合情況下，總會有一些零件可用。

But in any reasonable volume, we can do it in as little as six weeks and many other 18 weeks, plus. But these constraints are fairly significant, I would say.

但以任何合理的數量，我們可以在短短 6 週內完成，還有很多其他 18 週，再加上。但我想說，這些限制相當重要。

Following up on that, perhaps you can give us a sense as to when you expect that supply will be more in line with demand. You talked about adding capacity. I think tomorrow you said you are adding some new capacity and then you have something planned for, I think you said, January. When would you expect to see a relative balance between supply and demand?

跟進這一點，也許您可以讓我們了解您預計何時供應將更符合需求。你談到了增加容量。我想明天你說你正在增加一些新的容量，然後你有一些計劃，我想你說，一月份。您預計何時會看到供需之間的相對平衡？

The supply/demand balances are hard to predict. I know what additional supply we're bringing in because we know the wafer start ramp and similar ramp in the assembly and test.

供需平衡很難預測。我知道我們要引入哪些額外的供應，因為我們知道晶圓啟動斜坡和組裝和測試中的類似斜坡。

Now matching it against what demand may materialize, that is a difficult one. So we don't know what demand does in December quarter and then March quarter of next year. Will the rate of growth of these products continue?

現在將其與可能實現的需求相匹配，這是一個困難的問題。因此，我們不知道 12 月季度和明年 3 月季度的需求情況。這些產品的增長率會持續下去嗎？

It looks like we dramatically beat our own internal expectation; a year ago, what we predicted regarding these products will do, we were wrong. They are doing significantly, extremely better than that. A year ago, I would have told you that the 8-bit can grow in double digits. You wouldn't have believed it. So, I can't tell you exactly the timeframe when the problems get resolved, but we're adding a lot of new capacity and they will get better.

看起來我們大大超出了自己的內部預期；一年前，我們對這些產品的預測是錯誤的。他們做得非常好，比這要好得多。一年前，我會告訴你 8 位可以以兩位數增長。你不會相信的。所以，我不能告訴你問題得到解決的確切時間範圍，但我們正在增加很多新容量，它們會變得更好。

If I could just sneak one more quick one in, you are known as the cycle maven in semi. You have done very well predicting this for all the investors in the past. It feels very much now like the market is telling us that something is going to roll over soon. Your results certainly don't seem to foretell that.

如果我能再快速溜進去一個，你就被稱為半自行車專家。過去，您已經為所有投資者很好地預測了這一點。現在感覺就像市場告訴我們很快就會發生變化。你的結果似乎並沒有預示著這一點。

To what degree does this to you feel like the last run before the tightness gets resolved and suddenly you wind up having a positive demand versus more beginning stages of extended improving demand?

在何種程度上這對您來說是緊縮解決之前的最後一次運行，突然間您最終獲得了積極的需求，而不是更多開始階段的擴展需求改善？

I carry heavy burden on my shoulders for semi vision, but I'm not seeing any rollover right now. I think wind is on our back.

我肩負著半視力的沉重負擔，但我現在沒有看到任何翻車。我認為風在我們的背上。

All right, thank you.

好噠。謝謝你們。

Ray Rund, Shaker Investments.

雷潤德，Shaker Investments。

Thank you for taking my question. Steve, actually most of my questions have been answered. I was just curious if you could just repeat what the breakdown was in terms of the different revenue by product area that you went through at the beginning. You did it pretty fast.

謝謝你接受我的問題。史蒂夫，實際上我的大部分問題都已得到解答。我只是好奇你是否可以重複一下你一開始所經歷的按產品領域劃分的不同收入的細分。你做得很快。

This is Eric. I can do that. So microcontrollers were $343.8 million, analog was $127.8 million, memory was $33.4 million, licensing was $20.4 million, and other was $5.9 million.

這是埃里克。我能做到。所以微控制器是 3.438 億美元，模擬是 1.278 億美元，內存是 3340 萬美元，許可是 2040 萬美元，其他是 590 萬美元。

Okay. As a follow-up question, you mentioned that the analog, excluding Supertex, was up very -- I think less than 1% sequentially. Is there any reason why analog has slowed down the last couple of quarters?

好的。作為一個後續問題，您提到不包括 Supertex 的類似物上漲非常 - 我認為連續上漲不到 1%。模擬在過去幾個季度放緩的原因有什麼？

Like we mentioned for our 16-bit product line, if you -- I think quarter to quarter, there are going to be sometimes a larger-than-expected growth and sometimes a smaller-than-expected growth. This isn't the totality of how it's been doing year over year on an annualized basis, and you will find that the analog business has had fantastic growth throughout this time.

就像我們提到的 16 位產品線一樣，如果您 - 我認為每個季度的增長有時會大於預期，有時會小於預期。這並不是它按年計算的年復一年的全部情況，您會發現模擬業務在這段時間內取得了驚人的增長。

That's quite true.

這是真的。

It was not 1%, by the way. Our analog business was out to -- Supertex grew 2.6% sequentially.

順便說一句，這不是 1%。我們的模擬業務實現了——Supertex 環比增長 2.6%。

Okay, I misunderstood, then. Okay. At any rate, let me add my congratulations on an excellent quarter. Thank you very much.

好吧，那我誤會了。好的。無論如何，讓我祝賀一個出色的季度。非常感謝。

Rajvindra Gill, Needham & Company.

Rajvindra Gill，Needham & Company。

This is Josh in for Raji. Congratulations on the quarter and thanks for taking my question. Most of them have been answered, but could you please give us some color on end markets? I know you mentioned a little bit with auto before, but more color there would be helpful.

這是拉吉的喬希。祝賀本季度，感謝您提出我的問題。他們中的大多數都已經回答了，但是你能給我們一些關於終端市場的顏色嗎？我知道你之前提到過一點關於 auto 的內容，但是更多的顏色會有幫助。

So I think I mentioned we are seeing strength in industrial. We are seeing strength in auto. We are seeing strength in housing. We ship a lot of parts into all sorts of housing appliances, garage door openers, security systems, and all that kind of stuff.

所以我想我提到我們正在看到工業領域的實力。我們看到了汽車的實力。我們看到了住房方面的實力。我們將大量零件運送到各種家用電器、車庫開門器、安全系統以及所有類似的東西中。

We are seeing strength in consumer electronics and kind of things we do. We don't go into the cell phone, but the other consumer electronics, and the unique one is personal computing. I think if you listened to the Intel commentary and their results, the PCs are going through a refresh cycle, so our PC exposure has gone up with the acquisition of SMSC; in fact, two different divisions of SMSC, one that does the embedded controller for the PCs and the other division does Ethernet and LAN and USB and all that. We have seen that market strengthening also.

我們看到了消費電子產品和我們所做的事情的實力。我們不涉及手機，而是其他消費電子產品，唯一的一個是個人計算。我認為如果你聽過英特爾的評論和他們的結果，PC 正在經歷一個更新周期，所以我們的 PC 曝光率隨著收購 SMSC 而上升；事實上，SMSC 有兩個不同的部門，一個負責 PC 的嵌入式控制器，另一個負責以太網、LAN 和 USB 等。我們也看到市場走強。

So we are seeing strength in many of these end markets.

因此，我們在許多這些終端市場中看到了實力。

I believe the market that has been weak was the smart phones, and that's where Microchip doesn't have exposure, so I think we have done well largely because we tried to stay away from that market. We don't like its margins. We don't like its customers. We don't like a number of things about it.

我相信一直疲軟的市場是智能手機，而這正是 Microchip 沒有涉足的領域，所以我認為我們做得很好主要是因為我們試圖遠離那個市場。我們不喜歡它的利潤。我們不喜歡它的客戶。我們不喜歡它的很多事情。

Thank you. That's very helpful. And then, lastly, on the SMSC, last quarter I think you mentioned you thought you were about halfway to the point where it was -- had reached its full potential for accretion. Can you maybe update us there on where that progress is? Has it been complicated at all by Supertex (multiple speakers)

謝謝你。這很有幫助。然後，最後，在 SMSC 上，上個季度我想你提到你認為你已經達到了它的一半——已經達到了它的全部吸積潛力。您能否在那兒向我們介紹進展情況？ Supertex（多個揚聲器）是否使它變得複雜

So I will let Ganesh respond to that, but what we said last quarter is we were halfway there on integrating backend assembly and test manufacturing.

所以我會讓 Ganesh 對此做出回應，但我們上個季度所說的是，我們在集成後端組裝和測試製造方面已經完成了一半。

That is exactly what we said, and so -- and we were actually a little less than 50% at that point in time.

這正是我們所說的，所以——實際上，當時我們的比例還不到 50%。

Those are -- not everything that is outsourced makes sense to bring in house. We do that case by case. And there is some accretion in SMSC that over time will come as we sell those designs to a broader set of customers using Microchip sales, teams, and all that. But SMSC has done exceedingly well and better than what we had expected in its contribution to Microchip.

這些是 - 並非所有外包的東西都可以帶入內部。我們逐案進行。隨著時間的推移，隨著我們使用 Microchip 銷售、團隊等將這些設計出售給更廣泛的客戶群，SMSC 中會有一些增長。但是 SMSC 在其對 Microchip 的貢獻方面做得非常好，比我們預期的要好。

So SMSC's gross and operating margins are now at the Microchip level.

因此 SMSC 的毛利率和營業利潤率現在處於 Microchip 水平。

Okay, great. Thank you. Congratulations again.

好，太棒了。謝謝你。再次祝賀。

And further improvements are possible as we bring some of the small stuff in, but already SMSC's gross and operating margins are right on the top of Microchip.

隨著我們引入一些小東西，進一步的改進是可能的，但 SMSC 的毛利率和營業利潤率已經在 Microchip 的首位。

(Operator Instructions). [Gill Alexander], [Darful Associates].

（操作員說明）。 [吉爾亞歷山大]，[Darful Associates]。

Congratulations again. Could you update us on your long-term model and what you would like to have your gross margins at and your operating expenses? And you mentioned your operating profit goal is at 35% now?

再次祝賀。您能否向我們介紹您的長期模式以及您希望獲得的毛利率和運營費用？您提到您的營業利潤目標現在是 35%？

Let me remind everyone, we haven't changed it, so our long-term gross margin model is 61.5%, plus/minus 0.5%. Our operating expense target is 26.5%, plus/minus 0.5%. And our operating margin target is 35%, plus/minus 1% if you just look all the low and high.

讓我提醒大家，我們沒有改變它，所以我們的長期毛利率模型是61.5%，正負0.5%。我們的營業費用目標是 26.5%，正負 0.5%。我們的營業利潤率目標是 35%，如果你只看低和高，加/減 1%。

What is really -- what is holding us back a little bit are really the acquisitions. It is very difficult to go out and find an acquisition that is performing at Microchip kind of financials today. In fact, we have found none. So the acquisitions we buy, SST, SMSC, Supertex, ISSC, they are all in the gross margins between 45% and 55%, operating margins in teens, pretty much all of them, and SST was worse than that. It wasn't making any money.

真正的——讓我們有點退縮的是收購。很難走出去尋找在今天的 Microchip 金融領域表現出色的收購。事實上，我們沒有找到。所以我們購買的收購，SST、SMSC、Supertex、ISSC，它們的毛利率都在 45% 到 55% 之間，營業利潤率在十幾歲，幾乎所有這些，而 SST 比這更糟糕。它沒有賺錢。

And then, we take on the task through pruning and expense reduction and margin improvement and moving them to our factories and choosing what to make and not to make and selecting the product lines and getting our sales and applications infrastructure to go sell them better to get them into our operating profit. We did that with SST. We did that with SMSC. We are making huge improvement with Supertex, as I mentioned. Their operating margin was 17 and now it is 25. And we got to go the rest of the way, and ISSC, we have just begun. We closed the deal about a week ago.

然後，我們通過削減開支、降低成本和提高利潤來承擔任務，將它們轉移到我們的工廠，選擇生產什麼和不生產什麼，選擇產品線，讓我們的銷售和應用基礎設施更好地銷售它們以獲得將它們計入我們的營業利潤。我們用 SST 做到了這一點。我們使用 SMSC 做到了這一點。正如我所提到的，我們正在對 Supertex 進行巨大的改進。他們的營業利潤率是 17，現在是 25。我們必須走完剩下的路，而 ISSC，我們才剛剛開始。我們大約一周前完成了交易。

Thank you. Could you give me an idea of how much money you have overseas?

謝謝你。你能告訴我你在海外有多少錢嗎？

A lot.

很多。

Yes. The vast majority of our cash and investments balance is offshore, and that's why we are borrowers in the US. We manage our US balance to keep our borrowings as low as possible, but the vast majority of cash is offshore.

是的。我們絕大多數的現金和投資餘額都在離岸，這就是為什麼我們是美國的借款人。我們管理我們的美國餘額以保持我們的借款盡可能低，但絕大多數現金是離岸的。

And your estimated depreciation (technical difficulty) for fiscal 2015?

以及您對 2015 財年的估計折舊（技術難度）？

It depends on the capital that we are bringing in and how that ramps on, but it is probably going to be somewhere between $97 million and $100 million, so it will be up year over year.

這取決於我們引入的資本以及如何增加，但它可能會在 9700 萬美元到 1 億美元之間，因此會逐年增加。

Okay. Could you remind me what ISSC's sales are?

好的。你能提醒我ISSC的銷售額是多少嗎？

So one is the public number for the last quarter, which is known, which is what?

所以一個是上一季度的公眾號，這是已知的，這是什麼？

The last public number is for the June quarter, and I know in NT dollars, that is TWD638 million.

最後一個公眾號是六月季度，我知道是新台幣，也就是6.38億新台幣。

So, about 21.

所以，大約21。

$21 million.

2100萬美元。

About $21 million, and I think their last calendar year, they were about $70 million, $69 million?

大約 2100 萬美元，我認為他們上一個日曆年大約是 7000 萬美元，6900 萬美元？

Yes, just over $69 million.

是的，剛剛超過 6900 萬美元。

So the June quarter, publicly-announced sales were about $21 million, and this quarter would be higher than that, but we have to ratio the sales from July 18 to the end of the quarter and that we have guided to be $18 million.

所以 6 月季度，公開宣布的銷售額約為 2100 萬美元，本季度會更高，但我們必須將 7 月 18 日至季度末的銷售額與我們的指導為 1800 萬美元進行比率。

Thank you very much. Appreciate it.

非常感謝。欣賞它。

John Pitzer, Credit Suisse.

約翰·皮策，瑞士信貸。

Thanks for letting me sneak in a question here at the end. Steve, a lot of them have been answered, but as you guys integrate more and more of these acquisitions, thinking about the core Microchip revenue as becoming harder and harder, but when I look to the September guidance, if you look at the -- take out the acquisition revenue, I'm getting to a flat core sequential growth. One, is that right? And two, even if it is not, I'd just be curious, given the capacity constraints, how much better could the September guidance have been if you didn't have some of the capacity constraints? Thank you.

謝謝你讓我在最後偷偷問一個問題。史蒂夫，很多問題已經得到解答，但是隨著你們整合越來越多的這些收購，考慮到核心 Microchip 收入變得越來越難，但是當我查看 9 月份的指導時，如果你看——除去收購收入，我的核心環比增長持平。一，對嗎？第二，即使不是，我也只是好奇，考慮到產能限制，如果沒有一些產能限制，9 月份的指導會好多少？謝謝你。

The answer to your first question, I think Microchip core business is growing quite substantially, so I don't know where you are coming up with flat. If you did that just for a quarter or so, I don't know, but if you look at four quarters over four quarters, or fiscal-year 2014 over fiscal-year 2013, we have had very, very substantial growth net of acquisitions.

回答你的第一個問題，我認為 Microchip 的核心業務正在大幅增長，所以我不知道你在哪裡提出平價。如果你只做了一個季度左右，我不知道，但如果你看四個季度比四個季度，或者 2014 財年比 2013 財年，我們的收購淨額增長非常非常可觀.

Steve, I was talking more sequential June to September.

史蒂夫，我說的是 6 月到 9 月的連續性。

June to September.

六月至九月。

That's up 3.5%.

上漲了 3.5%。

The midpoint of that guidance is 3.5%, plus the $18 million coming on from ISSC.

該指導的中點是 3.5%，加上來自 ISSC 的 1800 萬美元。

So Supertex was -- and that may be the confusion -- so Supertex was closed on April 1, so the entire Supertex was included in our June numbers. So including Supertex, June to September, the midpoint of our growth is 3.5%, not flat. And then, add 18% on the top of that.

所以 Supertex 是 - 這可能是混亂 - 所以 Supertex 於 4 月 1 日關閉，所以整個 Supertex 都包含在我們 6 月的數字中。所以包括 Supertex，6 月到 9 月，我們增長的中點是 3.5%，而不是持平。然後，再加上 18%。

Yes, $18 million.

是的，1800 萬美元。

$18 million, which takes the overall growth to about 6.9%.

1800 萬美元，使整體增長率達到 6.9% 左右。

What could the 3.5% have been had you not had some of the capacity constraints that you do?

如果沒有你所做的一些容量限制，那 3.5% 會是什麼？

I can't tell you that. I don't know.

我不能告訴你。我不知道。

Thanks, guys.

多謝你們。

Kevin Cassidy, Stifel.

凱文·卡西迪，斯蒂菲爾。

Thanks for letting me get one question in. The ISSC, how much of their product will be attached, do you think, to your microcontrollers or will be similar to when you first came into the analog market? And eventually this will sell on its own or do you expect that 1 plus 1 equals 3 with your microcontrollers plus ISSC?

感謝您讓我提出一個問題。ISSC，您認為他們的產品有多少會附加到您的微控制器上，還是會與您第一次進入模擬市場時類似？最終這將自行銷售，還是您希望 1 加 1 等於 3 與您的微控制器加 ISSC？

Clearly, we expect many of their products will marry up with a microcontroller, sometimes with our memory, as well as sometimes with our analog. The applications they go into in many cases we have served, but without the solution that ISSC has brought.

顯然，我們預計他們的許多產品將與微控制器結合，有時與我們的存儲器結合，有時與我們的模擬結合。他們進入的應用程序在我們服務過的許多情況下，但沒有 ISSC 帶來的解決方案。

But I think the large opportunity in ISSC also is to take it outside of Taiwan and China, which is where the predominant revenue for them is all coming from, and there, we have our sales channels and customer relationships where existing products that customers are building, but missing the components that ISSC builds, automatically becomes a quick addition that we can make.

但我認為 ISSC 的巨大機會也在於將其帶到台灣和中國之外，這是他們的主要收入來源，在那裡，我們擁有我們的銷售渠道和客戶關係，客戶正在建立現有產品，但缺少 ISSC 構建的組件，會自動成為我們可以快速添加的內容。

So we're expecting that many, many ISSC products will be sold next to our microcontrollers.

因此，我們預計將在我們的微控制器旁邊銷售許多 ISSC 產品。

Okay, great. And can you give us an idea of what the cost split is between front end and back end? You say you're going to move the back-end portion [I think] to internal manufacturing?

好，太棒了。你能告訴我們前端和後端之間的成本分配是多少嗎？你說你要把後端部分[我認為]轉移到內部製造？

We don't break that out, and even the timeline for when it can be done, not everything that ISSC manufactures will make sense to move in house. So we go systematically, item by item, with the objective of making sure that we get to a lower cost bringing it in house, and a percentage of what they do will make sense and some of it will not. But that analysis is not complete and we don't break out the backend versus front-end components of that.

我們不會打破這一點，甚至是何時可以完成的時間表，並不是 ISSC 製造的所有東西都適合搬入內部。因此，我們逐項系統地進行，目的是確保我們以較低的成本將其帶入內部，並且他們所做的事情的一部分是有意義的，而其中一些則沒有。但這種分析並不完整，我們沒有將後端與前端組件分開。

Okay, thank you. Congratulations.

好的謝謝你。恭喜。

There are no further questions in the queue.

隊列中沒有其他問題。

Okay, thank you very much for attending our conference call. We will see some of you on the road as we are doing conferences. Otherwise, we will talk to next quarter. Thank you.

好的，非常感謝您參加我們的電話會議。我們在開會時會在路上見到你們中的一些人。否則，我們將在下個季度討論。謝謝你。

That does conclude today's teleconference. We thank you for your participation.

今天的電話會議到此結束。我們感謝您的參與。