微晶片科技 (MCHP) 2016 Q4 法說會逐字稿

Good day, everyone, and welcome to this Microchip Technology fourth-quarter and FY16 financial results conference call.

大家好，歡迎參加 Microchip Technology 第四季和 2016 財年財務業績電話會議。

As a reminder, today's call is being recorded.

提醒一下，今天的通話正在錄音。

At this time, I would like to turn the call over to Mr. Eric Bjornholt, Chief Financial Officer.

現在，我想將電話轉給財務長 Eric Bjornholt 先生。

Please go ahead, sir.

請繼續，先生。

Good afternoon, everyone.

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 or the future financial performance of the Company.

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。

We wish to caution you that such statements are predictions and that actual events or results may differ materially.

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。

We refer you to our press releases of today, as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operations.

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。

In attendance with me today are Steve Sanghi, Microchip's Chairman and CEO; and Ganesh Moorthy, Microchip's President and COO.

今天與我一起出席的有 Microchip 董事長兼執行長 Steve Sanghi；以及 Microchip 總裁兼營運長 Ganesh Moorthy。

I will comment on our fourth-quarter and full FY16 financial performance, and Steve and Ganesh will then give their comments on the results, discuss the current business environment, as well as our guidance, and provide an update on the integration activities associated with the Atmel and Micro acquisitions.

我將評論我們第四季度和整個 2016 財年的財務業績，然後 Steve 和 Ganesh 將對結果發表評論，討論當前的商業環境以及我們的指導，並提供與Atmel 和 Micro 收購。

We will then be available to respond to specific investor and analyst questions.

然後我們將可以回答具體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.

我想提醒您，我們在新聞稿和本次電話會議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。

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 調整表，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.

我現在將介紹一些經營業績，包括淨銷售額、毛利率和經營費用。

I will be referring to those results on a non-GAAP basis prior to the effects of our acquisition activities and share-based compensation.

我將在我們的收購活動和基於股份的薪酬的影響之前參考非公認會計原則的結果。

Non-GAAP net sales in the March quarter were a record and at the high end of our guidance at $568.4 million and were up 3% sequentially from net sales of $552 million in the immediately preceding quarter.

3 月季度的非 GAAP 淨銷售額創歷史新高，達到我們指引的上限，達到 5.684 億美元，比上一季的淨銷售額 5.52 億美元季增 3%。

Non-GAAP net sales were $10.8 million higher than GAAP net sales, as we are reporting non-GAAP net sales on a full sell-through revenue recognition basis while GAAP does not recognize revenue on the sell-through of products sitting in the distribution channel on the date an acquisition occur, and when distributor contracts are changed to the standard Microchip format compared to the sell in revenue-recognition contracts that Micrel previously had for certain of their distribution partners.

非 GAAP 淨銷售額比 GAAP 淨銷售額高出 1,080 萬美元，因為我們在完全銷售收入確認的基礎上報告非 GAAP 淨銷售額，而 GAAP 不確認分銷管道中產品的銷售收入與Micrel 之前為其某一些分銷合作夥伴簽訂的收入確認合約中的銷售相比，在收購發生之日以及分銷商合約更改為標準Microchip 格式時。

We have posted a summary of our revenue by product line and geography on your website for your reference.

我們已在您的網站上發布了按產品線和地理位置劃分的收入摘要，供您參考。

On a non-GAAP basis, gross margins were 58.4% in the March quarter, which was above the high end of our guidance.

以非公認會計原則計算，三月季度的毛利率為 58.4%，高於我們指導的上限。

Non-GAAP operating expenses were 27% of sales, below the bottom end of our guidance, and non-GAAP operating income was 31.4% of sales, which was significantly above the high end of our guidance, which was 30.8%.

非 GAAP 營業費用佔銷售額的 27%，低於我們指引的下限，非 GAAP 營業收入佔銷售額的 31.4%，明顯高於我們指引的上限（30.8%）。

Non-GAAP net income was $153 million, resulting in earnings per diluted share of $0.70, which was also above the high end of our guidance.

非 GAAP 淨利潤為 1.53 億美元，稀釋後每股收益為 0.70 美元，也高於我們指引的上限。

For FY16 on a non-GAAP basis, net sales were a record $2.214 billion, and up 2.5% year over year.

2016 財年，以非 GAAP 計算，淨銷售額達到創紀錄的 22.14 億美元，較去年同期成長 2.5%。

Gross margins were 58.1%, operating expenses were 27.2% of sales, and operating income was 31% of sales.

毛利率為58.1%，營業費用佔銷售額的27.2%，營業收入佔銷售額的31%。

Net income was $583.3 million, and non-GAAP EPS was a record $2.68 per diluted share.

淨利為 5.833 億美元，非 GAAP 每股攤薄每股收益創歷史新高 2.68 美元。

On a GAAP basis, net sales were $557.6 million and gross margins were 54.3% in the March quarter.

以 GAAP 計算，第三季淨銷售額為 5.576 億美元，毛利率為 54.3%。

GAAP gross margins include the impact of $1.9 million of share-based compensation, $5.4 million of gross margin impact from the distributer revenue adjustment I mentioned earlier, $18.2 million in acquired inventory valuation costs, and a manufacturing vendor material issues of $3.6 million.

GAAP 毛利率包括190 萬美元的股權激勵的影響、我之前提到的經銷商收入調整帶來的540 萬美元的毛利率影響、1820 萬美元的收購庫存評估成本以及360 萬美元的製造供應商材料問題。

Total operating expenses were $222.8 million, or 40% of sales, and include acquisition intangible amortization of $48.1 million, share-based compensation of $15.4 million, $5 million of acquisition-related expenses, and special charges of $0.8 million.

總營運費用為 2.228 億美元，佔銷售額的 40%，其中包括 4,810 萬美元的收購無形攤銷、1,540 萬美元的股權激勵、500 萬美元的收購相關費用以及 80 萬美元的特殊費用。

GAAP net income was $67.4 million, or $0.31 per diluted share.

GAAP 淨利為 6,740 萬美元，或攤薄後每股收益 0.31 美元。

For FY16, GAAP net sales were a record $2.173 billion, gross margins were 55.5%, operating expenses were 39.3% of sales, and operating income was 16.2% of sales.

2016 財年，GAAP 淨銷售額達到創紀錄的 21.73 億美元，毛利率為 55.5%，營運費用佔銷售額的 39.3%，營運收入佔銷售額的 16.2%。

Net income was $324.1 million, or $1.49 per diluted share.

淨利潤為 3.241 億美元，即稀釋後每股收益 1.49 美元。

In the March quarter, the non-GAAP tax rate was 11% and the GAAP tax benefit rate was 16.9%.

3 月季度，非 GAAP 稅率為 11%，GAAP 稅收優惠率為 16.9%。

The non-GAAP tax rate does not reflect a $12.3 million benefit for non-recurring items associated with the tax audit settlement and other matters.

非 GAAP 稅率並未反映與稅務審計和解及其他事項相關的非經常性項目的 1,230 萬美元收益。

Including Atmel, we expect our longer-term forward-looking non-GAAP effective tax rate to be between 8% to 9%.

包括 Atmel 在內，我們預計長期前瞻性非 GAAP 有效稅率將在 8% 至 9% 之間。

Moving on to the balance sheet, our inventory balance at March 31, 2016 was $306.8 million.

轉到資產負債表，截至 2016 年 3 月 31 日，我們的庫存餘額為 3.068 億美元。

Excluding the purchase accounting adjustments flowing through the income statement, Microchip had 117 days of inventory at March 31, 2016, which is down by 3 days from the levels at the end of the December quarter.

不計入損益表的採購會計調整，截至 2016 年 3 月 31 日，Microchip 的庫存天數為 117 天，比 12 月季度末的水準減少了 3 天。

Excluding purchase accounting adjustments, inventory at our distributors was at 32 days, which is down 2 days from the December quarter levels.

不包括採購會計調整，我們經銷商的庫存為 32 天，比 12 月季度水準減少了 2 天。

I want to remind you that historically, Microchip's distribution revenue throughout the world has been recognized on a sell-through basis.

我想提醒您的是，從歷史上看，Microchip 在全球範圍內的分銷收入都是根據銷售量來確認的。

Atmel had a mixture of sell-in and sell-through revenue recognition in its distribution channel.

Atmel 在其分銷管道中混合了銷售收入和直銷收入確認。

Our non-GAAP revenue guidance provided in our release today is based on sell-through revenue recognition for the Atmel distributors for the entire June quarter in order to continue to provide investors with a view of the true end-market demand for our products.

我們今天發布的非公認會計準則收入指引是基於 Atmel 經銷商整個 6 月季度的銷售收入確認，以便繼續向投資者提供有關我們產品的真正終端市場需求的資訊。

There will be a difference in GAAP revenue recognition, as the inventory in Atmel's sell-through distribution channels at the date of the acquisition will not be recognized as revenue for GAAP accounting purposes, and also because some of the contracts with the Atmel distributors drive sell-in recognition for GAAP accounting purposes.

GAAP 收入確認將存在差異，因為 Atmel 直銷分銷渠道中的庫存在收購之日不會被確認為 GAAP 會計目的收入，而且還因為與 Atmel 分銷商簽訂的一些合同推動了銷售- 出於GAAP 會計目的的認可。

The cash generation in the March quarter, excluding our acquisition activities, our dividend payment, and changes in borrowing levels under our revolving line of credit was a record $196.3 million.

不包括我們的收購活動、股利支付和循環信貸額度下的借款水準變化，三月季度的現金產生量達到創紀錄的 1.963 億美元。

This includes a $22 million cash benefit from unwinding the interest rate swap that we had in place.

這包括我們解除現有利率交換帶來的 2,200 萬美元現金收益。

The swap was unwound as our natural hedge of floating rate debt went away by utilizing our cash to fund the Atmel acquisition.

由於我們利用現金為 Atmel 收購提供資金，浮動利率債務的自然對沖消失了，因此掉期被解除。

As of March 31st, the consolidated cash and total investment position was $2.565 billion.

截至 3 月 31 日，合併現金和總投資部位為 25.65 億美元。

Our borrowings under our revolving line of credit as of March 31st were $1.052 billion.

截至 3 月 31 日，我們的循環信貸額度下的借款為 10.52 億美元。

Excluding dividend payments, changes in borrowing levels, and our acquisition-related activities, we expect our total cash generation to be approximately $140 million to $160 million in the June quarter.

不包括股利支付、借款水準變動以及收購相關活動，我們預期第二季的現金產生總額約為 1.4 億至 1.6 億美元。

Capital spending was approximately $[16.5] million in the March quarter and $97.9 million in FY16, well below the $110 million forecast we provided in our last earnings call.

三月季度的資本支出約為 1,650 萬美元，2016 財年的資本支出為 9,790 萬美元，遠低於我們在上次財報電話會議中提供的 1.1 億美元的預測。

We expect about $35 million in capital spending in the June quarter and overall capital expenditures for FY17 to be about $140 million, including Atmel.

我們預計 6 月季度的資本支出約為 3,500 萬美元，2017 財年的總體資本支出約為 1.4 億美元，其中包括 Atmel。

We are selectively adding capital to support the growth of our production capabilities for our fast-growing new products and technologies and to bring in house more of the assembly and test operations that are currently outsourced.

我們有選擇地增加資本，以支持我們快速成長的新產品和技術的生產能力的成長，並引進更多目前外包的組裝和測試業務。

Depreciation expense in the March quarter was $26.2 million and $103.9 million for FY16.

3 月季度的折舊費用為 2,620 萬美元，2016 財年的折舊費用為 1.039 億美元。

I will now ask Ganesh to give his comments on the performance of the business in the March quarter.

我現在請加內什對三月季度的業務表現發表評論。

Thank you, Eric, and good afternoon, everyone.

謝謝你，埃里克，大家下午好。

Today I'll give you a summary of our product-line performance and then provide an update as to where we are with the Atmel integration from a product-line perspective.

今天，我將向您簡要介紹我們的產品線績效，然後從產品線的角度介紹我們與 Atmel 整合的進度。

Let's take a closer look at the performance of each of our product lines, starting with microcontrollers.

讓我們從微控制器開始，仔細看看我們每個產品線的性能。

Our microcontroller revenue was up 5.5% in the March quarter as compared to the December quarter, as we experienced a broad-based recovery in our business.

與 12 月季度相比，我們的微控制器收入在 3 月份季度增長了 5.5%，因為我們的業務出現了廣泛的復甦。

All three businesses, 8-bit, 16-bit and 32-bit microcontrollers, were sequentially up, with the 16-bit and 32-bit businesses being up in double-digit percentages.

8位、16位和32位微控制器這三個業務均連續成長，其中16位和32位業務的成長幅度達到兩位數。

Microcontrollers represented 59.9% of Microchip's overall revenue in the March quarter.

微控制器佔Microchip第三季總營收的59.9%。

Gartner Dataquest just released their microcontroller market share report for 2015.

Gartner Dataquest 剛發布了 2015 年微控制器市場佔有率報告。

We are pleased to report that Microchip retained the number one position for 8-bit microcontrollers and once again gained market share in 2015.

我們很高興地報告，Microchip 保持了 8 位元微控制器第一的位置，並在 2015 年再次獲得了市場份額。

In the 16-bit microcontroller market too, we continue to gain market share, while in the 32-bit microcontroller market, our market share was about flat.

在16位微控制器市場上，我們的市佔率也不斷增加，而在32位微控制器市場上，我們的市佔率基本上持平。

The microcontroller market-share data reported by Gartner is getting increasingly volatile, driven by the inclusion of smart card and NFC revenue, and is further exacerbated by our belief that this data is inconsistently reported by the companies surveyed.

受智慧卡和 NFC 收入納入的推動，Gartner 報告的微控制器市場份額數據變得越來越不穩定，而且我們認為受訪公司報告的數據不一致，進一步加劇了這種情況。

Smart card and NFC revenue has no bearing on the broad-based microcontroller market, which is a much more resilient and profitable business and where Microchip participates.

智慧卡和 NFC 收入對廣泛的微控制器市場沒有影響，微控制器市場是一個更具彈性和盈利能力的業務，也是 Microchip 參與的領域。

We remain pleased with the performance and competitiveness of our 8-bit, 16-bit, and 32-bit microcontrollers in the broad-based market.

我們對 8 位元、16 位元和 32 位元微控制器在廣泛市場中的性能和競爭力仍然感到滿意。

Our overall microcontroller results are outperforming the market in a very competitive environment, and these results are a tribute to the relentless effort by the worldwide Microchip team.

在競爭非常激烈的環境中，我們的整體微控制器結果優於市場，這些結果歸功於全球 Microchip 團隊的不懈努力。

We have gained market share, and we 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.

我們已經獲得了市場份額，隨著我們進一步打造業內性能最佳的微控制器特許經營權，我們擁有新產品動力和客戶參與度，可以繼續獲得更多份額。

The addition of Atmel microcontrollers to our portfolio will further strengthen our position and performance in the microcontroller market.

Atmel 微控制器加入我們的產品組合將進一步加強我們在微控制器市場的地位和績效。

Moving now to analog products.

現在轉向模擬產品。

Our analog business was about flat in the March quarter as compared to the December quarter, and was up 34.6% compared to the year-ago quarter.

我們的模擬業務在 3 月季度與 12 月季度相比基本持平，但與去年同期相比增長了 34.6%。

In FY16, which ended on March 31st, our analog business was up 26.3% as compared to FY15.

截至 3 月 31 日的 2016 財年，我們的模擬業務比 2015 財年成長了 26.3%。

The strong growth and increase in market share in FY16 was a result of our organic growth efforts as well as the Micrel acquisition.

2016 財年的強勁成長和市場份額的增加得益於我們的有機成長努力以及對 Micrel 的收購。

Our analog business represented 30.2% of Microchip's overall revenue in the March quarter.

我們的模擬業務佔 Microchip 三月季度總營收的 30.2%。

We continue to develop and introduce a wide range of innovative and proprietary new linear, mix-signal, power, interface, and timing products to fuel the future growth of our analog business.

我們持續開發和推出各種創新和專有的新型線性、混合訊號、電源、介面和定時產品，以推動我們模擬業務的未來成長。

Moving now to our memory business, which is comprised of our Serial [Es] Quad memory products as well as our super-flash memory products.

現在轉向我們的記憶體業務，該業務由我們的串行 [Es] Quad 記憶體產品以及我們的超級快閃記憶體產品組成。

This business was down 1.8% in the March quarter as compared to the December quarter.

與 12 月季度相比，該業務在 3 月季度下降了 1.8%。

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.

我們繼續以嚴格的方式經營我們的記憶體業務，保持一貫的高盈利能力，支援我們的授權業務，並為我們的微控制器客戶提供完整的解決方案。

Our memory business represented 4.8% of Microchip's overall revenue in the March quarter.

我們的記憶體業務佔 Microchip 三月季度總營收的 4.8%。

Now an update about Atmel and where we are in the integration process.

現在介紹 Atmel 的最新情況以及我們在整合過程中的進展。

Since the close of the acquisition on April 4th, we have spent considerable time understanding Atmel's businesses, organization, and systems.

自 4 月 4 日收購結束以來，我們花了相當多的時間來了解 Atmel 的業務、組織和系統。

We're developing detailed integration plans that are in various stages of completion.

我們正在製定詳細的整合計劃，目前處於不同的完成階段。

Where we have decisions made, we have begun to execute those plans, while we continue to build and refine integration plans in other areas.

在我們做出決定的地方，我們已經開始執行這些計劃，同時我們繼續在其他領域制定和改善整合計劃。

Specific to the product lines, here is where we are with our integration.

具體到產品線，這是我們的整合情況。

We have combined Atmel's 8-bit AVR microcontroller business, along with Microchip's 8-bit PIC microcontroller business under a single leader.

我們將 Atmel 的 8 位元 AVR 微控制器業務與 Microchip 的 8 位元 PIC 微控制器業務合併到一個領導者之下。

The 8-bit AVR microcontroller, which is still very popular among a broad base engineers, had atrophied under Atmel over the last five years as resources were diverted to touch and 32-bit microcontrollers.

8 位元 AVR 微控制器在廣大工程師中仍然很受歡迎，但在過去五年中，由於資源被轉移到觸控和 32 位元微控制器上，在 Atmel 的領導下已經萎縮。

That stopped on April 4th, as we reprioritized resources to reinvigorate the iconic AVR microcontrollers to drive growth.

這種情況在 4 月 4 日停止，因為我們重新調整了資源的優先順序，以重振標誌性的 AVR 微控制器以推動成長。

We expect to release a steady stream of innovative new AVR microcontrollers over the next 12 months that will lead its resurgence, even as we continue to release a steady stream of innovative new 8-bit PIC microcontrollers.

我們預計將在未來 12 個月內源源不斷地發布創新型新型 AVR 微控制器，從而引領其復興，同時我們也將繼續源源不斷地發布創新型新型 8 位元 PIC 微控制器。

We have also combined Atmel's SAM 32-bit microcontroller and 32-bit microprocessor business, along with Microchip's 32-bit microcontroller business under a single leader.

我們也將 Atmel 的 SAM 32 位元微控制器和 32 位元微處理器業務以及 Microchip 的 32 位元微控制器業務合併到一個領導者之下。

32-bit microprocessors, by the way, are a new product category for Microchip, and are typically higher performance and complex embedded control solutions.

順便說一句，32 位元微處理器是 Microchip 的一個新產品類別，通常是更高效能和複雜的嵌入式控制解決方案。

Unlike microcontrollers, which have flash memory on chip, microprocessors have no flash memory on chip, and instead use much larger, external flash memories.

與片上有快閃記憶體的微控制器不同，微處理器沒有片上閃存，而是使用更大的外部快閃記憶體。

Microchip had a PIC-32 microprocessor program, which was in its early stage of investment.

Microchip有一個PIC-32微處理器項目，該項目正處於投資的早期階段。

And we have decided to terminate that investment, as we can capitalize on Atmel's SAM-32 microprocessor road map, which is more advanced and already in significant revenue stage.

我們決定終止這項投資，因為我們可以利用 Atmel 的 SAM-32 微處理器路線圖，該產品更先進，並且已經處於可觀的收入階段。

Looking forward we expect to continue to develop new SAM 32 and PIC 32 products, exploiting specific areas of specialization that each Company had carved out over the years, while streamlining and harmonizing the technology and intellectual property building blocks that each will use.

展望未來，我們預計將繼續開發新的 SAM 32 和 PIC 32 產品，利用各公司多年來開拓的特定專業領域，同時簡化和協調各公司將使用的技術和智慧財產權建構模組。

We have combined Atmel's wireless business and Microchip's wireless business under a single leader.

我們將 Atmel 的無線業務和 Microchip 的無線業務合併到一個領導者的領導下。

The product lines have some overlap, and road maps are in the process of being rationalized to bring the investment in line with what is appropriate for the business.

產品線有一些重疊，路線圖正在合理化，以使投資符合適合業務的方向。

In that light, one decision we made was to close Atmel's Dresden wireless development center in mid-April.

有鑑於此，我們做出的一項決定是在四月中旬關閉 Atmel 的德勒斯登無線開發中心。

There is more wireless investment rationalization that is left to do.

還有更多的無線投資合理化工作要做。

We have combined Atmel's memory business and Microchip's memory business under a single leader.

我們將 Atmel 的記憶體業務和 Microchip 的記憶體業務合併到一個領導者之下。

The product lines offer many substitutable products, and while we will continue to support both product lines for any customer who cannot switch, for the great majority of the customers, we will converge to a best-of-breed product, which has the lowest overall cost and best overall customer value.

這些產品線提供了許多可替代的產品，雖然我們將繼續為任何無法切換的客戶提供這兩條產品線的支持，但對於絕大多數客戶，我們將集中到同類最佳的產品，該產品的整體成本最低。成本和最佳整體客戶價值。

We have also begun rationalizing the going forward R&D investment to eliminate redundant projects either Microchip or at Atmel.

我們也開始合理化未來的研發投資，以消除 Microchip 或 Atmel 的冗餘項目。

Atmel's touch business is in the process of being restructured into mobile and non-mobile, which is essentially the automotive and industrial businesses.

Atmel的觸控業務正在重組為行動和非行動業務，主要是汽車和工業業務。

We have identified the leadership structures required for two independent businesses.

我們已經確定了兩個獨立企業所需的領導結構。

As we announced on April 4th, the automotive and industrial touch business will stay with Microchip in the long run, while the mobile touch business will be sold.

正如我們在 4 月 4 日宣布的那樣，汽車和工業觸控業務將長期留在 Microchip，而行動觸控業務將出售。

We expect to have the two organizations in place some time this quarter and to begin marketing the mobile touch business soon after.

我們預計這兩個組織將在本季度的某個時候就位，並很快開始行銷行動觸控業務。

Atmel security solutions business consists of a number of crypto products.

Atmel 安全解決方案業務由多種加密產品組成。

This is a newer field of play for Microchip, and Atmel's offerings will add to and strengthen our security offerings, as well as accelerate some of the solutions that Microchip had planned to independently develop.

這是 Microchip 的一個新領域，Atmel 的產品將補充和加強我們的安全產品，並加速 Microchip 計劃獨立開發的一些解決方案。

Steve will comment in more detail in his section about how we expect to see the accretion results rollout.

史蒂夫將在他的部分中更詳細地評論我們期望如何看到吸積結果的推出。

Finally, let me provide an update on Atmel's acquisition --on the Atmel acquisition in regards to our product-line reporting.

最後，讓我提供有關 Atmel 收購的最新資訊——有關 Atmel 收購的有關我們產品線報告的資訊。

Atmel standard microcontroller revenue, including the automotive and industrial touch microcontrollers, will be reported as part of Microchip's microcontroller product line.

Atmel 標準微控制器收入（包括汽車和工業觸控微控制器）將作為 Microchip 微控制器產品線的一部分進行報告。

Atmel's analog revenue, which is predominantly made up of products for the automotive market, will be reported as part of Microchip's analog product line.

Atmel 的模擬收入主要由汽車市場產品組成，將作為 Microchip 模擬產品線的一部分進行報告。

Atmel's memory revenue will be reported as part of Microchip's memory product line.

Atmel 的記憶體收入將作為 Microchip 記憶體產品線的一部分進行報告。

Atmel had a product line called multi-market, which included the aerospace business, the legacy CPLD business, and the foundry services business.

Atmel 擁有一條名為「多市場」的產品線，其中包括航空航太業務、傳統 CPLD 業務和代工服務業務。

Microchip will adopt multi-market as a product line we'll report, and we will roll the revenue from our historical other product line, which consisted of manufacturing services into this multi-market product line.

Microchip 將採用多市場作為我們將報告的產品線，我們將把歷史上其他產品線（包括製造服務）的收入轉入該多市場產品線。

Further, Atmel also has legacy ASIC microcontrollers comprising either discontinued products or products which had not had any investment for many years.

此外，Atmel 還擁有傳統 ASIC 微控制器，包括已停產的產品或多年沒有任何投資的產品。

We intend to include revenue from these products in the multi-market product line as well.

我們也打算將這些產品的收入納入多市場產品線。

As we mentioned during our April 4th conference call, Atmel's mobile touch business will be classified as an asset held for sale, and we will only report the net profit or loss for this business below the operating line of Microchip's income statement.

正如我們在 4 月 4 日的電話會議中所提到的，Atmel 的行動觸控業務將被歸類為待售資產，我們將僅在 Microchip 損益表的營業線下方報告該業務的淨利潤或虧損。

Let me now pass it to Steve for general comments about our business, our guidance going forward, and some more about the Atmel integration.

現在讓我將其轉交給 Steve，徵求有關我們業務、未來指導以及有關 Atmel 整合的更多資訊的一般性意見。

Steve?

史蒂夫？

Thank you, Ganesh, and good afternoon, everyone.

謝謝你，Ganesh，大家下午好。

Today I would like to first comment on the results of the fourth quarter of FY16 and then provide guidance for the first quarter of FY17.

今天我想先評論 2016 財年第四季的業績，然後為 2017 財年第一季提供指引。

I will also make comments on the progress of integration for Micrel and newly acquired Atmel.

我也會對Micrel和新收購的Atmel的整合進展發表評論。

Our March quarter financial results were very strong amid a weak semiconductor industry backdrop.

在半導體產業疲軟的背景下，我們三月季度的財務表現非常強勁。

We achieved the high end of our net sales guidance, establishing a new record in the process, and we exceeded the high end of the guidance for non-GAAP gross margin percentage, operating profit percentage, and earnings per share.

我們實現了淨銷售額指導的上限，在此過程中創造了新的記錄，並且我們超過了非公認會計原則毛利率百分比、營業利潤百分比和每股收益指導的上限。

Our non-GAAP earnings per share was sequentially up approximately 11% from the December quarter due to improving sales, gross margins, and operating expense leverage.

由於銷售額、毛利率和營運費用槓桿率的改善，我們的非 GAAP 每股收益比 12 月季度增長了約 11%。

I hope that emphatically demonstrates the operating leverage left in our premium business model.

我希望這能重點介紹我們優質業務模式中留下的營運槓桿。

Before I go into guidance, let me give you a brief update on the integration of Micrel and Atmel.

在開始指導之前，讓我先向您簡要介紹一下 Micrel 和 Atmel 的整合情況。

On Micrel, we are essentially in the final stages of completing the integration.

在 Micrel 上，我們基本上處於完成整合的最後階段。

The two items remaining are both in the manufacturing area.

剩下的兩個項目都在製造區域。

The integration of back-end operations into Microchip systems is on schedule for August.

將後端操作整合到 Microchip 系統中的計劃按計劃於 8 月進行。

The other item is a closing of the fab and we have an update on that.

另一件事情是關閉工廠，我們有最新消息。

We could have closed Micrel's fab in August by building a large amount of inventory for the customers to switch to Microchip's 8-inch fabs.

我們本來可以在8月關閉Micrel的晶圓廠，為客戶建立大量庫存，以便轉向Microchip的8吋晶圓廠。

But as we have analyzed options after the Atmel purchase, we believe that a couple of processes are better transferred from the Micrel 6-inch fab to Atmel's 6-inch fab in Colorado Springs.

但正如我們分析收購 ​​Atmel 後的選擇一樣，我們認為將一些製程從 Micrel 6 吋晶圓廠轉移到 Atmel 位於科羅拉多斯普林斯的 6 吋晶圓廠會更好。

This will require less inventory and result in lower risk to the customers and business units.

這將需要更少的庫存，並降低客戶和業務部門的風險。

Therefore, we are transferring the process to Atmel's fab and we will structure the Micrel fab to a very small operation, largely running a couple of those processes until they are qualified in the Atmel fab.

因此，我們正在將製程轉移到 Atmel 的晶圓廠，並將 Micrel 晶圓廠建造為非常小的操作，主要運行其中幾個工藝，直到它們在 Atmel 晶圓廠合格為止。

We believe this will delay the final close of the Micrel fab by four months to December of 2016.

我們相信這將使 Micrel 晶圓廠的最終關閉時間將推遲四個月至 2016 年 12 月。

The financial model of Micrel is starting to look very good.

麥克雷爾的財務模式開始看起來非常好。

Recall that when we purchased Micrel about nine months ago, it was making a gross margin of 48.4% and the operating profit was 6.7% of revenue.

回想一下，大約九個月前我們收購 Micrel 時，它的毛利率為 48.4%，營業利潤佔收入的 6.7%。

In the December 2015 quarter, we achieved 49.5% gross margin and 18% operating profit from Micrel.

2015 年 12 月季度，我們從 Micrel 獲得了 49.5% 的毛利率和 18% 的營業利潤。

I'm happy to report that in the March 2016 quarter, we achieved 53.2% gross margin and 22.8% operating profit from Micrel.

我很高興地向大家報告，在 2016 年 3 月季度，我們從 Micrel 獲得了 53.2% 的毛利率和 22.8% 的營業利潤。

We now believe that after we close the fab, the final operating-profit model for Micrel will exceed 30% and will be above our original model.

我們現在相信，在關閉晶圓廠後，Micrel 最終的營運利潤模型將超過 30%，高於我們原來的模型。

By the way, SuperTex integration is complete.

至此，SuperTex 整合已完成。

Final result, gross margin in the high 60s.

最終結果，毛利率在 60 左右。

The operating expenses are really intertwined, so harder to decipher, but safe to say that operating profit is in the 30s.

營運費用確實交織在一起，因此很難破譯，但可以肯定地說，營運利潤在 30 左右。

Now regarding Atmel.

現在關於Atmel。

Ganesh provided the progress report on the integration of product lines of Atmel.

Ganesh提供了Atmel產品線整合的進展報告。

There's not a whole lot more beyond that with just one month gone.

僅僅一個月過去了，除此之外並沒有更多的事情。

We are in the process of cross-franchising Microchip and Atmel distributors, and we are sorting through all of the overlaps in rep coverage and major accounts.

我們正在對 Microchip 和 Atmel 分銷商進行交叉特許經營，並且正在對代表範圍和主要客戶中的所有重疊部分進行排序。

I will now provide guidance for the June 2016 quarter.

我現在將為 2016 年 6 月季度提供指導。

We started out the June quarter with a stronger backlog than we had going into January, and the bookings and turns for the quarter so far have been strong.

我們在 6 月季度開始時的積壓量比 1 月份時還要多，而且該季度迄今為止的預訂量和周轉量都非常強勁。

The Chinese New Year holidays in Asia are also behind us, although this is traditionally a slower quarter in Europe.

亞洲的農曆新年假期也已過去，儘管這在歐洲傳統上是一個較慢的季度。

Based on our analysis of economic and semiconductor industry conditions, as well as our own business indicators, we are guiding the March quarter net sales without Atmel to be up between 1% to 5% sequentially, or between $574.1 million and $596.9 million.

根據我們對經濟和半導體行業狀況以及我們自己的業務指標的分析，我們預計 3 月份季度（不含 Atmel）淨銷售額將環比增長 1% 至 5%，即 5.741 億美元至 5.969 億美元。

We expect non-GAAP gross margin, again without Atmel, to be between 58.2% and 58.6% of sales.

我們預計，不考慮 Atmel 的非 GAAP 毛利率將在銷售額的 58.2% 至 58.6% 之間。

We expect non-GAAP operating expenses to be between 26.3% and 26.6% of sales, and we expect the non-GAAP operating profit to be between 31.6% and 32.3% of sales.

我們預計非 GAAP 營運費用將佔銷售額的 26.3% 至 26.6%，我們預計非 GAAP 營運利潤將佔銷售額的 31.6% 至 32.3%。

We expect our non-GAAP earnings per share without Atmel to be $0.70 to $0.74 per share.

我們預計，在不考慮 Atmel 的情況下，我們的非 GAAP 每股收益將為每股 0.70 美元至 0.74 美元。

With this, let me now provide guidance for accretion from the acquisition of Atmel.

現在，讓我為收購 Atmel 帶來的增值提供指導。

There are two items that we need to be mindful of as we look at guidance for Atmel's net sales.

在查看 Atmel 淨銷售額指引時，我們需要注意兩點。

First, while Atmel reported its net sales based on sell-in revenue recognition to distributors in Asia, Microchip will report Atmel's non-GAAP sales based on a sell-through revenue recognition worldwide.

首先，Atmel 根據向亞洲經銷商確認的直銷收入來報告其淨銷售額，而 Microchip 將根據全球直銷收入確認來報告 Atmel 的非 GAAP 銷售額。

Secondly, Microchip will report the mobile touch portion of Atmel's business as an asset held for sale, and will report this business unit's profit or loss below the net operating profit of Microchip and will exclude this net profit or loss for non-GAAP purposes.

其次，Microchip 將把 Atmel 業務的行動觸控部分作為持有待售的資產進行報告，並將報告該業務部門的損益低於 Microchip 的淨利潤，並且出於非 GAAP 目的排除該淨利潤或虧損。

Now based on that, we expect Atmel to add approximately $225 million to $245 million in net sales for the continued businesses.

在此基礎上，我們預期 Atmel 的持續業務淨銷售額將增加約 2.25 億至 2.45 億美元。

We expect the continuing business of Atmel to be between 46% to 47% in gross margin, and we expect the Atmel subsidiary to be $0 to $0.05 accretive to Microchip's non-GAAP earnings per share.

我們預計 Atmel 持續業務的毛利率將在 46% 至 47% 之間，我們預計 Atmel 子公司將為 Microchip 的非 GAAP 每股盈餘增加 0 至 0.05 美元。

So now let's combine the guidance for core Microchip and Atmel.

現在讓我們結合核心 Microchip 和 Atmel 的指南。

We expect June quarter net sales to be between $799.1 million and $841.9 million.

我們預計 6 月季度的淨銷售額將在 7.991 億美元至 8.419 億美元之間。

We expect non-GAAP earnings per share to be between $0.70 to $0.79 per share.

我們預計非 GAAP 每股盈餘將在 0.70 美元至 0.79 美元之間。

We continue to expect that Atmel will be about $0.25 accretive to Microchip's non-GAAP earnings per share in FY17.

我們繼續預期 Atmel 2017 財年的非公認會計原則每股收益將增加約 0.25 美元。

In closing, I would like to say that March quarter marks the start of the growth period for us after ending the inventory correction in the December quarter.

最後，我想說，在 12 月季度的庫存調整結束後，3 月季度標誌著我們增長期的開始。

In case of Atmel, the inventory on the balance sheet and the distribution inventory is still high, and there is still some inventory correction to go through that is baked into our guidance.

就 Atmel 而言，資產負債表上的庫存和分銷庫存仍然很高，並且仍然需要進行一些庫存修正，這些修正已納入我們的指導中。

Combining growth from our core business, further accretion coming from Micrel, and the accretion from Atmel, this triple effect will set up the earnings growth momentum that we expect will lead us to an 18% non-GAAP EPS growth from FY16 to FY17.

結合我們核心業務的成長、Micrel 的進一步成長以及Atmel 的成長，這種三重效應將形成獲利成長勢頭，我們預計這將使我們從2016 財年到2017 財年實現18% 的非GAAP 每股盈餘成長。

With this, operator will you please poll for questions?

有了這個，接線員可以請您投票提問嗎？

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

We first move to Vivek Ayra with Banc of America Merrill Lynch.

我們首先與美銀美林一起轉向 Vivek Ayra。

Hi, thank you for letting me ask a question.

你好，謝謝你讓我問一個問題。

This is [Shankar] on behalf of Vivek.

我是 [Shankar] 代表 Vivek。

On the Atmel business, can you talk about the growth in the various segments that you have on the latest (inaudible) you acquired, which of the segments do you think is going to grow?

關於 Atmel 業務，您能否談談您最近收購的（聽不清楚）各個細分市場的成長情況，您認為哪些細分市場將會成長？

And how do you think you're going to position your products along with their products and strategically grow both product lines?

您認為您將如何將您的產品與他們的產品一起定位，並策略性地發展這兩個產品線？

It's a little early for all of the growth areas, obviously, we're coming up to speed on the different businesses.

對於所有成長領域來說，現在還為時過早，顯然，我們正在加快不同業務的發展速度。

The investment road maps have been what they were, they were focused on 32-bit and touch alone.

投資路線圖一直是這樣，他們只專注於 32 位元和觸控。

There wasn't as much on 8-bit; we see that as a potential area of growth for us going forward.

8 位就沒有那麼多了；我們認為這是我們未來發展的一個潛在成長領域。

There is some nice growth, we believe in security, certainly in the 32-bit microcontroller and wireless areas that they have invested in.

我們相信安全性方面有一些不錯的成長，尤其是在他們投資的 32 位元微控制器和無線領域。

It's a little early to give you any specific numbers, we're working on that.

現在給你任何具體數字還為時過早，我們正在研究這個問題。

We also have to look at how to balance that with investments Microchip has also been making in similar areas, so that's with respect to growth.

我們還必須考慮如何平衡這一點與 Microchip 在類似領域的投資，所以這是關於成長的。

On the positioning, I think we have very clear ways in which products have areas of strength that they have developed.

在定位上，我認為我們有非常明確的方法，讓產品擁有自己開發的優勢領域。

On 8-bit, the AVR has a strong following, a wide base of customers and applications and so does the PIC microcontrollers.

在 8 位元方面，AVR 擁有強大的追隨者、廣泛的客戶和應用基礎，PIC 微控制器也是如此。

The biggest opportunity on that is going to be how do we take our analog products and create more attach around both companies' efforts.

最大的機會將是我們如何利用我們的模擬產品並圍繞兩家公司的努力建立更多聯繫。

Obviously, we've been doing that on 8-bit for a long time, now doing it for the AVR 8-bits as well.

顯然，我們長期以來一直在 8 位元上這樣做，現在也在 AVR 8 位元上這樣做。

On 32-bit, microprocessors is an area Atmel had as a strength, we hadn't been doing it.

在 32 位元領域，微處理器是 Atmel 的強項，但我們一直沒有這麼做。

We'll take that and run with it, and again, position the rest of our product lines to attach with their microprocessors.

我們將採用它並運行它，並再次定位我們其餘的產品線以連接到他們的微處理器。

We expect on the microcontrollers that are ARM-based, as well as MIPS-based microcontrollers, so we'll have PIC 32s and SAM 32 products.

我們期望基於 ARM 的微控制器以及基於 MIPS 的微控制器，因此我們將擁有 PIC 32 和 SAM 32 產品。

They each have different uniqueness around them, have gone after slightly different markets.

他們各自都有不同的獨特性，所追求的市場也略有不同。

In some cases, they could be commonality of customers.

在某些情況下，它們可能是客戶的共通點。

And so largely on the microcontrollers, we're not expecting that there's big shake-ups in the road maps.

由於主要是在微控制器上，我們預期路線圖不會有重大變化。

And then outside of microcontrollers, really the rest of the product lines are reasonably well positioned.

然後，除了微控制器之外，其他產品線的定位確實相當不錯。

Got it.

知道了。

Just as a follow-up on the synergies from Atmel acquisition, could you provide a split up between how much will come from the COGS side of things and OpEx side of things for FY17?

作為收購 Atmel 綜效的後續行動，您能否提供 2017 財年 COGS 面向和 OpEx 方面的支出比例？

And then maybe in out years, will that incrementally be more on the COGS side or the OpEx side?

也許在未來幾年，這會逐漸更集中在 COGS 方面還是 OpEx 方面？

We are not able to break down the synergies in OpEx side or the COGS side revenue growth.

我們無法分解營運支出方面或銷貨成本方面收入成長的綜效。

We are given combined numbers of the earnings-per-share accretion for FY17, FY18, and FY19.

我們獲得了 2017 財年、2018 財年和 2019 財年每股收益成長的合併數據。

And a month after the acquisition, as we have looked at it, we are pretty much confirming that we can achieve those numbers.

收購一個月後，正如我們所看到的，我們幾乎確認我們可以實現這些數字。

Okay, thank you.

好的謝謝。

Next question comes from Craig Hettenbach with Morgan Stanley.

下一個問題來自摩根士丹利的 Craig Hettenbach。

Yes, thank you.

是的，謝謝。

Just a question on the IoT piece of the business, Steve, if you can just touch on how you're seeing design activity there and the relative growth for those type of products versus the overall MCU business?

史蒂夫，我只是問一個關於物聯網業務的問題，您能否談談您如何看待那裡的設計活動以及這些類型的產品與整個 MCU 業務的相對增長？

Well, our wireless business has been doing quite well for quite some time.

嗯，我們的無線業務在相當長一段時間內表現良好。

And honestly, we are surprised about where Atmel got some of the reputation on being well positioned in IoT.

老實說，我們對 Atmel 在物聯網領域的良好定位而享有盛譽感到驚訝。

As we looked at it now closer as we own it, the wireless business was less than half of Microchip's business and losing a very large amount of money.

當我們現在更仔細地審視它時，我們發現無線業務還不到 Microchip 業務的一半，並且損失了大量資金。

So we are dramatically restructuring Atmel's wireless business, combining with our wireless business and coming up with the combined road maps, some products from us, some products from them.

因此，我們正在大幅重組Atmel的無線業務，與我們的無線業務結合，並提出合併的路線圖，有些產品來自我們，有些產品來自他們。

In fact, just today, we closed one of the design centers of the wireless, which was based in Dresden, Germany.

事實上，就在今天，我們關閉了位於德國德勒斯登的無線設計中心之一。

But Microchip had a very strong momentum in wireless.

但Microchip在無線領域有著非常強勁的勢頭。

And taking some of the good products from Atmel, it will further aid to it, but their wireless business wasn't really tracked up to really what they positioned it with the analysts and investors.

並從 Atmel 獲得一些優質產品，這將進一步為其提供幫助，但他們的無線業務並沒有真正追蹤他們對分析師和投資者的定位。

Got it, and then just as my follow-up for a comment on just the current environment, as you mentioned, this is a growth period for you.

明白了，就像我對當前環境的評論的後續行動一樣，正如您提到的，這對您來說是一個成長期。

Any anecdotes you can point to in terms of as you made your way through the inventory correction, whether it's customer behavior or distributors and how the business is being managed?

您可以指出在庫存調整過程中發生的任何軼事嗎？無論是客戶行為還是經銷商以及業務管理方式？

Are you talking about Microchip's core business or Atmel's business?

你說的是Microchip的核心業務還是Atmel的業務？

Microchip's core.

微晶片的核心。

So our business is running normal.

所以我們的業務一切正常。

We completed the inventory correction back in the December quarter, as we reported, distribution inventory was basically flattish; it was down by two days last quarter.

我們在 12 月季度完成了庫存修正，正如我們報告的那樣，分銷庫存基本上持平；上個季度減少了兩天。

Internal inventory seems reasonable, so I don't really think there's movement going in either direction.

內部庫存似乎很合理，所以我真的認為這兩個方向都沒有變化。

I think the business is really normal.

我覺得生意真的很正常。

Our business represents the real demand today.

我們的業務代表了當今的真實需求。

Got it, thanks.

知道了謝謝。

Next question comes from John Pitzer with Credit Suisse.

下一個問題來自瑞士信貸銀行的約翰‧皮策 (John Pitzer)。

Yes, good afternoon, guys.

是的，下午好，夥計們。

Thanks for letting me ask the question and thanks for all of the detail in the conference call.

感謝您讓我提出問題，也感謝電話會議中提供的所有細節。

Steve, my first question is if I adjust for the mobile touch business at Atmel, it looks like the June guide is implying flat to down 8%, maybe down 4% at the mid point.

史蒂夫，我的第一個問題是，如果我對 Atmel 的行動觸控業務進行調整，看起來 6 月的指南意味著持平至下降 8%，中間可能下降 4%。

I'm just curious, to what extent do you think this is just the hangover of some of the distribution inventory problems you had versus maybe a portfolio that wasn't as strong as you'd originally thought?

我只是很好奇，您在多大程度上認為這只是您遇到的一些分銷庫存問題的後遺症，而不是一個可能不如您最初想像的強大的投資組合？

And importantly, when do you think you get the core Atmel business back to some level of sequential and year-over-year growth?

重要的是，您認為 Atmel 核心業務何時才能恢復到一定水準的連續成長和年成長？

So there were probably more than one question in there, but the mobile touch business of Atmel that we didn't include is about $14 million a quarter.

因此，其中可能存在不止一個問題，但我們沒有包括在內的 Atmel 行動觸控業務每季約為 1400 萬美元。

So if you add it to the midpoint of our guidance that we provided, it's about $250 million.

因此，如果將其添加到我們提供的指導的中點，則約為 2.5 億美元。

So it's really neither way up or down much.

所以它實際上既沒有上升也沒有下降太多。

We basically feel that Atmel was in the middle of a very major inventory correction.

我們基本上認為 Atmel 正處於非常重大的庫存調整之中。

There was a very, very large amount of distribution inventory, as well as the inside inventory.

有非常非常大量的分銷庫存，以及內部庫存。

We have seen some of that behavior with the sell-in driven companies in our prior acquisitions also, but this one was really over the top.

在我們之前的收購中，我們也看到一些以拋售為導向的公司的這種行為，但這次確實太過分了。

As we announced back on April 4th that based on a sell-in driven revenue recognition, the revenue was only in the $220 million range, so there was really a massive inventory correction and distribution.

正如我們在 4 月 4 日宣布的那樣，根據銷售驅動的收入確認，收入僅在 2.2 億美元範圍內，因此確實進行了大規模的庫存調整和分配。

If they were standalone, then the revenue would just had been very, very low.

如果它們是獨立的，那麼收入就會非常非常低。

And I think the second part of your question was when do we see growth?

我認為你問題的第二部分是我們什麼時候會看到成長？

We believe we see stabilization beginning now, and it continuously improves.

我們相信現在已經開始穩定，並且持續改善。

We are improving Atmel systems on many different fronts, and you will see the second half of this year to be significantly better than what you have seen in the first half.

我們正在許多不同方面改進 Atmel 系統，您將看到今年下半年的情況明顯優於上半年。

That's helpful, Steve, and then maybe for my follow-up, I know this doesn't impact the non-GAAP guidance you gave.

這很有幫助，史蒂夫，也許對於我的後續行動，我知道這不會影響您提供的非公認會計準則指導。

But when you report the below-the-line loss or gain from the mobile touch business, did you expect that business to be profitable, is it a loss?

但是，當您報告行動觸控業務的線下虧損或盈利時，您是否預期該業務會獲利，這是虧損嗎？

And how do we think about getting rid of that business relative to your accretion targets for Atmel?

相對於 Atmel 的成長目標，我們如何考慮擺脫該業務？

Okay, so the business is about $14 million in revenue, low 30%s gross margin, in the 33% range gross margin, and it's losing money.

好吧，該業務的收入約為 1,400 萬美元，毛利率低至 30%，毛利率在 33% 左右，而且正在虧損。

And part of the issue is its expenses are extremely high and kept high by Atmel management, while the revenue was falling steeply down over the last year and the year before.

部分問題在於，該公司的開支非常高，而且 Atmel 管理層一直將其維持在高位，而去年和前年的收入卻急劇下降。

So what we are doing is very, very aggressively cutting its operating expenses to size of business accordingly to get it to close to profitability.

因此，我們正在做的是非常非常積極地根據業務規模相應地削減營運費用，以使其接近盈利。

And with that, we will market that business to be able to sell it.

有了這個，我們將行銷該業務以便能夠出售它。

Helpful, thanks guys.

有幫助，謝謝大家。

Next question comes from Harlan Sur with JPMorgan.

下一個問題來自摩根大通的 Harlan Sur。

Good afternoon and nice job on the quarterly execution.

下午好，季度執行情況良好。

Your 16- and 32-bit businesses grew double digits sequentially in March.

3 月份，您的 16 位和 32 位業務連續兩位數成長。

It's pretty solid results in a tough demand environment.

在嚴峻的需求環境中，這是相當可靠的結果。

I know you said broad based, but any color geography or end-market wise as to the strong growth drivers?

我知道你說的是基礎廣泛，但對於強勁的成長動力，有色彩地理或終端市場的智慧嗎？

I know automotive continues to be an area of strength, but any color you can provide will be appreciated here?

我知道汽車仍然是一個優勢領域，但您能提供的任何顏色都會在這裡受到讚賞嗎？

There's nothing I can point my finger to and say this is what it was.

我沒有什麼可以指指點點說事情就是這樣的。

Both businesses are like our overall microcontroller business, are broad based; thousands of customers; many, many, many different applications.

這兩項業務就像我們的整體微控制器業務一樣，基礎廣泛；數以千計的客戶；很多很多不同的應用。

And that work takes place over the years to establish those new designs.

多年來，這項工作一直在進行，以建立這些新設計。

And as any overall improvement in environment happens, we see that improvement in our business across a wide range of applications and customers.

隨著環境的整體改善，我們看到我們的業務在廣泛的應用程式和客戶方面得到了改善。

So nothing specific I can point to.

所以我沒有什麼具體可以指出的。

Okay, well thanks for that.

好的，謝謝。

And then I know the team had previously mentioned that China did not fall off a cliff in the March quarter, as maybe the market had feared.

然後我知道該團隊之前曾提到，中國並沒有像市場擔心的那樣在三月季度跌落懸崖。

Is the team expecting the core Microchip China business to grow in the June quarter?

團隊是否預期 Microchip 中國核心業務將在第二季實現成長？

Again, auto and China appears to be an area of strength.

汽車和中國似乎再次成為優勢領域。

I know you've got broad-based exposure here, but again, any areas in China that you're seeing strength?

我知道您在這裡擁有廣泛的影響力，但同樣，您在中國的哪些領域看到了優勢？

Is it more just inventory replenishment or do you think that it's true demand pull?

這只是補充庫存還是您認為這是真正的需求拉動？

Well, yes, absolutely.

嗯，是的，絕對是。

Our June quarter business in China will be up sequentially over the March quarter.

我們六月季度在中國的業務將比三月季度環比成長。

We were not able to break down by industry because we just don't roll up the revenue that way.

我們無法按行業進行細分，因為我們只是不以這種方式匯總收入。

It's broad based, we're up in direct, we're up in distribution, so it's really fairly broad based.

它的基礎廣泛，我們在直接方面領先，我們在分銷方面領先，所以它的基礎確實相當廣泛。

Our China business will definitely be up in the March quarter.

我們的中國業務肯定會在三月季度有所成長。

And it's really always up in June following the Chinese New Year that happens in the March quarter, so just it's a higher number of shipping days, but the demand environment is fine.

在三月季度農曆新年之後，六月的貨運量確實總是上漲，所以只是運輸天數較多，但需求環境良好。

Great, thanks for the insights.

太好了，感謝您的見解。

Welcome.

歡迎。

Next question comes from Craig Ellis with B Riley.

下一個問題來自 Craig Ellis 和 B Riley。

Thanks for taking the question and congratulations on the nice job in the quarter.

感謝您提出問題並祝賀本季的出色工作。

Steve, I wanted to start off with a higher level question.

史蒂夫，我想從一個更高層次的問題開始。

The team has had four weeks to be on the inside of the Atmel business.

該團隊已有四個星期的時間深入 Atmel 業務內部。

Could you summarize for us what your biggest takeaways are now that you're on the inside looking at that business versus what you thought you were getting when you closed the deal a month ago?

您能否為我們總結一下，您現在在內部審視該業務與一個月前完成交易時所認為的收穫相比，您最大的收穫是什麼？

That's a thoughtful question and really requires a thoughtful answer.

這是一個深思熟慮的問題，確實需要深思熟慮的答案。

I think if you take it from the high level, in consolidation of any industry, there are companies at the bottom that have been underperforming for years.

我認為，如果你從高層來看，在任何產業的整合中，都會有一些處於底層的公司多年來表現不佳。

They are being forced by either the [bulls] or the activist investors to seek strategic alternatives, which is another word for basically selling their Company.

他們被[公牛]或激進投資者強迫尋求策略替代方案，這就是基本上出售公司的另一種說法。

Such consolidation is now taking place in the semiconductor industry and we have been one of the consolidators.

半導體產業現在正在發生這種整合，我們也是整合者之一。

Microchip has purchased a number of companies that were all underperforming, and in each of these companies, we found some negative surprises after we bought the companies.

Microchip 收購了許多表現不佳的公司，在這些公司中，我們在收購這些公司後都發現了一些負面的意外情況。

But Microchip has systematically transformed the companies that we have bought into highly profitable enterprises performing in the Microchip business model.

但 Microchip 已有系統地將我們收購的公司轉變為按照 Microchip 商業模式運作的高利潤企業。

We've given you examples of SMSC, Micrel, Supertex before, and we believe that we'll be able to do the same with Atmel.

我們之前已經為您提供了 SMSC、Micrel、Supertex 的範例，我們相信我們也能夠對 Atmel 做同樣的事情。

We have competed Atmel for years.

我們多年來一直與 Atmel 競爭。

What we knew of Atmel from outside was that they had very good products and technology.

我們從外部對 Atmel 的了解是，他們擁有非常好的產品和技術。

And a month after we have purchased them, we have confirmed that many of Atmel's products and technologies are good, and they fit very well with Microchip's products, technologies, and our road maps,.

在我們購買它們一個月後，我們已經確認Atmel的許多產品和技術都很好，而且它們與Microchip的產品、技術和我們的路線圖非常契合。

But at the same time, we always wondered why Atmel, with such good products and technologies, always underperformed and could not make even one-third of the profit that Microchip made.

但同時，我們也一直想知道，為什麼Atmel擁有如此好的產品和技術，卻總是表現不佳，利潤連Microchip的三分之一都達不到。

We now have a deeper understanding of that, and the easiest way to describe that is they were very poorly managed.

我們現在對此有了更深入的了解，最簡單的描述就是它們的管理非常糟糕。

I will put that in five main buckets.

我將把它分為五個主要部分。

First, very poor accountability for results, kept giving bonuses and raises or whatever irrespective of the performance of the Company.

首先，對結果的責任感很差，無論公司的業績如何，都不斷發放獎金和加薪。

So very poor accountability for results.

所以對結果的責任感非常差。

Number second, poor teamwork.

第二，團隊合作不佳。

As we have seen teamwork between sales and operations and planning and inventory and just everybody does what they need to do and very poor teamwork.

正如我們所看到的，銷售、營運、計劃和庫存之間的團隊合作，每個人都做他們需要做的事情，但團隊合作非常差。

Number three, very high spending culture, obviously operating expenses in excess of 40% of revenue.

第三，消費文化非常高，營運費用顯然超過了收入的 40%。

Number four, always swinging for home runs, and essentially, getting struck out versus Microchip building its business with singles and doubles.

第四，總是能打出全壘打，而且本質上，在與 Microchip 建立單打和雙打業務的比賽中被三振出局。

And finally, number five, very poor pricing discipline.

最後，第五，定價紀律非常差。

So I think those are the five areas we have diagnosed.

所以我認為這些是我們已經診斷出的五個領域。

Again poor accountability for results; poor teamwork; very high spending culture; swinging for fences for the home-runs; and very, very poor pricing discipline.

再次，對結果的問責不力；團隊合作能力差；非常高的消費文化；為擊出本壘打而揮桿；而且定價紀律非常非常差。

So we have now combined most of Atmel's business units and their Microchip leaders so that we can begin to teach and implement our system of teamwork, accountability, operating expense, discipline, broad customer base, and strong pricing discipline.

因此，我們現在已將Atmel 的大部分業務部門及其Microchip 領導者合併起來，以便我們可以開始教導和實施我們的團隊合作、責任制、營運費用、紀律、廣泛的客戶群和嚴格的定價紀律系統。

As we have done with our SMSC, Supertex, and Micrel, we will be sharing that progress with the investors and analysts in the coming quarters.

正如我們對 SMSC、Supertex 和 Micrel 所做的那樣，我們將在未來幾季與投資者和分析師分享這一進展。

Atmel is not the first Company that I've been stressed over after purchasing them.

Atmel 並不是第一家讓我在收購後感到壓力的公司。

But I'm confident that just like in other cases, investors will like the results we deliver as we transform Atmel's good products and technologies to yield Microchip financial performance.

但我相信，就像在其他情況下一樣，當我們將 Atmel 的優質產品和技術轉化為 Microchip 的財務表現時，投資者會喜歡我們所提供的結果。

So that's how I see it.

我就是這麼看的。

Thanks for that detail.

謝謝你的詳細資料。

The follow-up question is one related to prepared comments, and it deals with integration, some of the operational aspects of the new business.

後續問題與準備好的評論相關，涉及整合以及新業務的一些營運方面。

And it's in regards to the distribution channels and the sales teams.

這與分銷管道和銷售團隊有關。

How long does it take to do a full cross-selling training on each of the portfolios with the different channels?

對不同管道的每個產品組合進行全面的交叉銷售培訓需要多長時間？

And when do you expect to start to get the design win synergy off of that cross training?

您預計什麼時候開始從交叉訓練中獲得設計勝利的協同效應？

I would say it takes about three months to launch it, another six months to train it, and you start getting design wins in the second half probably after six, seven months.

我想說大約需要三個月的時間來啟動它，另外六個月的時間來訓練它，你可能會在六、七個月後在下半年開始獲得設計勝利。

And the November production is another year, year-and-a-half away.

距離 11 月的製作還有一年半的時間。

Had some earlier wins on analog and attach and this is where the time to revenue could be shorter.

早期在模擬和附加方面取得了一些勝利，這就是創收時間可能會更短的地方。

Thanks, and the last question is for Ganesh.

謝謝，最後一個問題是問 Ganesh 的。

Ganesh, I appreciate the careful walk through of the product groups and the way Atmel is integrating with Microchip.

Ganesh，我很欣賞對產品組的仔細介紹以及 Atmel 與 Microchip 整合的方式。

I didn't hear you mention the 16-bit business.

我沒聽你提到16位業務。

Where does that fit as the portfolios come together under either standalone leadership or leadership with one of the groups you did mention?

當投資組合在獨立領導或與您提到的其中一個團隊的領導下聚集在一起時，這在哪裡合適？

That's easy.

這很容易。

There was no 16-bit business at Atmel.

Atmel 沒有 16 位元業務。

Microchip 16-bit business continues as a standalone business.

Microchip 16 位元業務繼續作為一項獨立業務。

Thanks guys.

多謝你們。

(Operator Instructions)

（操作員說明）

We next move to Chris Danely with Citigroup.

接下來我們請來花旗集團的克里斯丹利 (Chris Danely)。

Hey, thanks, Steve.

嘿，謝謝，史蒂夫。

I was going to ask another question, but your response to the last prompted me to ask this one.

我本來想問另一個問題，但你對上一個問題的回答促使我問這個問題。

So with Atmel's culture being pretty screwed up, A, have you had an acquired Company that's been this bad?

那麼，由於 Atmel 的文化非常糟糕，A，你有一家被收購的公司表現得這麼糟糕嗎？

And B, if you could share any anecdotes?

B，您能分享一些軼事嗎？

And then perhaps talk to us about how long you think it will take to get things in line there?

然後也許可以和我們談談您認為需要多長時間才能讓事情順利進行？

Well, I think I have been on record that this is probably the worst-performing Company I bought, and the size and scale of it makes it that much more challenging.

嗯，我想我已經公開表明，這可能是我購買的表現最差的公司，而且它的規模和規模使其更具挑戰性。

But we have deep experience inside of Microchip.

但我們在 Microchip 內部擁有豐富的經驗。

The people we have prepared and battle hardened to do these integrations over many, many different acquisitions.

我們已經準備好並經過磨練的人員在許多不同的收購中進行這些整合。

Remember, we have done acquisition in memory, which was FST.

記住，我們是在記憶體中進行採集的，也就是FST。

We've done acquisitions in wireless before.

我們之前曾在無線領域進行過收購。

We have done acquisitions in logic businesses, like SMSC.

我們已經完成了邏輯業務的收購，例如 SMSC。

We have acquired manufacturing assets before where we bought one of the test plan to MMT.

我們之前已經收購了製造資產，我們向 MMT 購買了一項測試計劃。

We bought a fab plant in Oregon, so across our diverse management structure, we have deep expertise in integrating acquired companies across many, many disciplines.

我們在俄勒岡州購買了一家晶圓廠，因此在我們多元化的管理結構中，我們在整合跨多個學科的收購公司方面擁有深厚的專業知識。

And the entire trained and battle-hardened management team of Microchip is really at work at Atmel, where essentially all but one or so of the divisions are today business units are being lead by Microchip executive.

Microchip 整個訓練有素、久經沙場的管理團隊都在 Atmel 工作，除了一個或幾個部門之外，現在基本上所有業務部門都由 Microchip 高層領導。

And we are basically making the operational changes, the cultural changes, teamwork changes, we have set up meetings already where operations and business units are in a common meeting, figuring out what the demand is, what we should build.

我們基本上正在進行營運變革、文化變革、團隊合作變革，我們已經召開了會議，營運和業務部門召開共同會議，弄清楚需求是什麼，我們應該建立什麼。

Those things were not connected basically.

這些東西基本上沒有連結。

Business units threw a demand over the wall and a manufacturing group went and built it, and sales never booked that order and never won that design.

業務部門提出了一個需求，然後一個製造團隊去建造它，而銷售部門從未預訂過訂單，也從未贏得該設計。

And there are lots and lots of millions of parts sitting written off and there was a very, very high amount of inventory write-off at Atmel, when we look at the history of that.

當我們回顧歷史時，有數以百萬計的零件被註銷，Atmel 的庫存註銷銷售非常非常高。

And doesn't compare anything with Microchip where we are really well run and rare that you have any large inventory write-off.

與 Microchip 相比，我們運作得非常好，而且很少有大量庫存沖銷。

So we are implementing all of Microchip's processes, and as we implement Microchip's processes, then a lot of the gross margin, other improvement will just happen because you don't write-off the inventory.

因此，我們正在實施 Microchip 的所有流程，當我們實施 Microchip 的流程時，就會出現大量毛利率和其他改進，因為您不會沖銷庫存。

There's a better pricing discipline, there's less OpEx, people are working together, all that stuff.

有更好的定價規則、更少的營運支出、人們一起工作等等。

Chris, I would also add there are lots and lots of great employees at Atmel.

克里斯，我還要補充一點，Atmel 有很多很多優秀的員工。

Many of whom were yearning for an improvement in system and who are responding extremely well to our presence, our values.

他們中的許多人都渴望改進系統，並且對我們的存在和我們的價值觀反應非常好。

And so we've seen this in other companies as well, that once you go below the top level, there are lots and lots of excellent employees who will be a big part of the contribution as we bring in the improvements that we need to make.

因此，我們在其他公司也看到了這一點，一旦你低於最高水平，就會有很多很多優秀的員工，他們將在我們帶來我們需要的改進時做出很大的貢獻。

And we're already seeing lots of those people are thrilled to be liberated and to be able to thrive in the systems that we bring.

我們已經看到很多人很高興獲得解放並能夠在我們帶來的系統中蓬勃發展。

We always say that management works on the system and employees work in the system, so employees worked in the system with very little accountability and they were not empowered to really make maybe possibility of improvements they could have made.

我們總是說，管理階層在系統中工作，員工在系統中工作，因此員工在系統中工作，幾乎沒有責任，他們沒有被授權真正做出他們本來可以做出的改進。

And system was very tops down.

而且系統是自上而下的。

There was too much bureaucracy in the system.

系統中官僚主義太多。

As we have traveled to all the Atmel sites internationally and other places that team has constantly come that there was so much central command and control from the headquarter where it took levels and levels of approvals and just there was a constipation of the funnels essentially, where nothing got approved and nothing got done.

由於我們走遍了 Atmel 國際上的所有工廠和其他地方，團隊不斷地來到這裡，總部有如此多的中央指揮和控制，需要層層審批，而且本質上存在漏斗堵塞，其中什麼都沒有得到批准，什麼也沒有做。

And ours is very distributed intelligence and distributed decision-making and people empowered where they work by our values, they know what they need to do.

我們的智慧和決策是高度分散式的，人們在工作中按照我們的價值觀獲得授權，他們知道自己需要做什麼。

And so lots of people as we have traveled from Norway to France to Germany to Colorado Springs to other have embraced us and said this is the kind of culture we have been yearning for.

當我們從挪威到法國、德國、科羅拉多斯普林斯等其他地方旅行時，很多人都擁抱了我們，並說這就是我們一直嚮往的文化。

Oh, great, thanks guys.

哦，太好了，謝謝大家。

Next question comes from Rajvindra Gill with Needham & Company.

下一個問題來自 Needham & Company 的 Rajvindra Gill。

Yes, thanks for taking my questions and congratulations as well.

是的，感謝您提出我的問題並表示祝賀。

This is a question with respect to Atmel's growth rate, and I think you've touched upon it a little bit.

這是一個關於 Atmel 成長率的問題，我想你已經觸及了一點。

But just wanted to get more clarity.

但只是想看得更清楚。

If you look at Atmel's revenue in 2015, it declined about 17% year over year roughly.

如果你看看Atmel 2015年的收入，它比去年同期下降了約17%左右。

There were a lot of maybe one-time items that were -- contributed to that fall, which is calculated.

經過計算，有很多可能是一次性的物品導致了那次墜落。

But I wanted to get a sense of how you're looking at Atmel's three-year or long-term growth rate, putting aside some of the one-time events that occurred in 2015.

但我想了解您如何看待 Atmel 的三年或長期成長率（拋開 2015 年發生的一些一次性事件）。

And given the fact that two-thirds of Atmel's revenue is really microcontrollers and your strategy of really focusing on the two-thirds of the business, how do we look at Atmel's longer-term growth rate?

考慮到 Atmel 三分之二的收入實際上是微控制器，以及您真正專注於三分之二業務的策略，我們如何看待 Atmel 的長期成長率？

Well, I think any answer we give either would mean nothing or you won't believe it.

好吧，我認為我們給的任何答案都毫無意義，或者你不會相信。

So one month after this, we're not ready to talk about what happens to Atmel's revenue three years from now.

因此，一個月後，我們還沒有準備好談論三年後 Atmel 的收入會發生什麼變化。

What we are seeing is that there was a very, very large shipment into distribution where distribution inventory was out of sight.

我們看到的是，有非常非常大的貨物進入配送中心，但配送庫存卻看不見。

And when you then measure revenue by sell-in, the revenue had a steep fall off in the later quarters, which is what you are counting in a significant revenue drop of Atmel in 2015.

然後，當您透過銷售來衡量收入時，收入在後面幾季急劇下降，這就是您在 2015 年 Atmel 收入大幅下降中所計算的。

And I'm not disagreeing the revenue was down 17%,s 17.5%.

我並不反對收入下降 17%，即 17.5%。

From the number that we're guiding you today, we see this number to be the starting point of stabilization in Atmel's revenue.

從我們今天提供給您的數字來看，我們認為這個數字是 Atmel 收入穩定的起點。

There is some more distribution inventory correction to go through, so the second half of this year should be stronger than the first half.

分銷庫存還要進行一些調整，因此今年下半年應該會比上半年更強。

Now beyond that would be better execution, combined road maps, a good pricing discipline, great distribution methodology, cross-selling distribute of each of those products, analog attach, and others.

除此之外，還包括更好的執行、綜合路線圖、良好的定價規則、出色的分銷方法、每種產品的交叉銷售分銷、模擬附加等。

We need to produce a growth rate from Atmel which is at least as much as the industry.

我們需要讓 Atmel 的成長率至少與整個產業一樣高。

I don't think that would be that difficult from how atrophied it is, and we have seen that in our other acquisitions.

我認為，鑑於它的萎縮程度，這不會那麼困難，我們在其他收購中也看到了這一點。

Beyond that, I can't really add the numbers to it.

除此之外，我無法真正將數字添加到其中。

Well, that's helpful, at least in terms of the thought process.

嗯，這很有幫助，至少在思考過程方面是如此。

Just following up, again, if the microcontroller business is -- put aside the changes in the revenue recognition, is roughly two-thirds of the Atmel's business and then you have the non-volatile memory in RF, auto, and multi-market.

再次跟進，如果微控制器業務——拋開收入確認的變化，大約佔 Atmel 業務的三分之二，然後你就可以在 RF、汽車和多市場中擁有非揮發性記憶體。

So it's not true that we're only focusing on the microcontroller business; we have two of our general managers focusing on the microcontroller business, one on eight8- bit and one on the 32-bit.

因此，我們並不只專注於微控制器業務。我們有兩位總經理專注於微控制器業務，一位負責 8 位，一位負責 32 位。

But we have another one focused on wireless.

但我們還有另一款專注於無線的產品。

We have another one focused on the R automotive business.

我們還有另一項業務專注於 R 汽車業務。

We have another one focused on security.

我們還有另一項重點關注安全性。

We have another one trying to combine the memory businesses of both companies, and they have are some good memory products and we think we could do more and better with them.

我們還有一家公司試圖將兩家公司的記憶體業務結合起來，他們有一些很好的記憶體產品，我們認為我們可以用他們做得更多更好。

So I can't afford to ignore one-third of any business.

所以我不能忽視任何業務的三分之一。

I understand that.

我明白那個。

I'm just doing the math, and in terms of sensitivity, every 250 basis points change in the microcontroller business has 180 basis points impact on revenue growth.

我只是在算算，就敏感度而言，微控制器業務每發生 250 個基點的變化，就會對營收成長產生 180 個基點的影響。

And the same number in terms of on the one-third of the business only had 80 basis points.

而同樣的數字對於三分之一的企業而言只有80個基點。

So that's what I'm just trying to get a sense of your thought process there.

所以這就是我只是想了解你的思考過程。

Yes, the business has been declining so far, with the March quarter as the bottom.

是的，到目前為止，業務一直在下滑，三月季度是谷底。

And what we are trying to do is first to stabilize it here, recover from the distribution inventory issue in the second half, grow some, and then lots of good design wins and the works.

我們要做的就是先穩定這裡，從下半年的分銷庫存問題中恢復過來，增長一些，然後贏得很多好的設計和作品。

The products and technologies are fundamentally good, and so we believe they're a good foundation from which to begin the efforts needed to grow the business.

這些產品和技術從根本上來說是好的，因此我們相信它們是開始發展業務所需努力的良好基礎。

There's every confidence that as we take those products, apply some of the disciplines that Steve talked about, get them into a combined channel, there is no doubt in my mind we'll find ways to grow that business.

我們完全有信心，當我們採用這些產品，應用史蒂夫談到的一些規則，將它們納入一個組合管道時，毫無疑問，我們會找到發展該業務的方法。

Great, thank you.

太好了謝謝。

Next question comes from Kevin Cassidy with Stifel.

下一個問題來自凱文·卡西迪和史蒂菲爾。

Thanks for taking my question.

感謝您提出我的問題。

I just wanted to talk about the CapEx, your plans, it seems it's extremely low as a percentage of revenue.

我只是想談談資本支出，你們的計劃，它佔收入的百分比似乎非常低。

And is that just good timing or do you expect that to expand in coming years?

這只是一個好時機嗎？還是您預計這種情況會在未來幾年擴大？

And what is the CapEx going to be spent on?

資本支出將用於哪些方面？

I would say we have the factory footprint that we need and we'll make incremental investments in the business as required.

我想說，我們擁有所需的工廠規模，我們將根據需要對業務進行增量投資。

You'll probably recall that for Microchip's core business, that we had pretty high CapEx in the first two quarters of last fiscal year.

您可能還記得，對於 Microchip 的核心業務，我們在上一財年的前兩個季度擁有相當高的資本支出。

And with that, we put some capacity in place that really isn't being utilized today.

這樣，我們就投入了一些目前尚未利用的產能。

So we've got some capacity to grow into on that front.

因此，我們在這方面有一定的發展能力。

We still have a lot of work to do in determining how back-end integration is going to work for Atmel, and we've got some place holders for that.

在確定 Atmel 的後端整合如何運作方面，我們還有很多工作要做，並且我們已經為此做好了一些準備。

But we think $140 million is a good placeholder for the current fiscal year, and as we learn more about future investment needs we can update you on that.

但我們認為 1.4 億美元是本財年的一個很好的佔位符，隨著我們更多地了解未來的投資需求，我們可以向您通報最新情況。

And Atmel revenue is down much more substantially.

Atmel 的營收下降幅度更大。

Our revenue is close to -- it was record last quarter, but Atmel's revenue is down significantly from its higher numbers before.

我們的收入接近上個季度的創紀錄水平，但 Atmel 的收入較之前的較高數字大幅下降。

An earlier caller mentioned that 17% were up last year, so there is substantial space in their factories.

早些時候的一位來電者提到去年增長了 17%，因此他們的工廠有很大的空間。

So therefore, I think the capital investment should be relatively limited for growing the revenue going forward.

因此，我認為為了增加未來的收入，資本投資應該相對有限。

Okay great, thank you.

好的，太好了，謝謝。

Next question comes from Mark Delaney with Goldman Sachs.

下一個問題來自高盛的馬克·德萊尼。

Yes, good afternoon.

是的，下午好。

Was hoping I could better understand some of the dynamics around the Atmel revenue.

希望我能更了解 Atmel 收入的一些動態。

And there was some discussion in some of the online publications around some of the larger customers potentially taking business away from Atmel post merger.

一些線上出版物中圍繞著一些可能在合併後從 Atmel 手中搶走業務的大客戶進行了一些討論。

And I was hoping you could clarify if any of the decline in Atmel's revenue is some of these larger customers maybe taking business elsewhere?

我希望你能澄清 Atmel 收入的下降是否是這些大客戶中的一些可能將業務轉移到其他地方？

So I think I mentioned that Atmel had a very, very poor pricing discipline.

所以我想我提到過 Atmel 的定價紀律非常非常差。

So we have found businesses in Atmel, or particular line items to particular customers that were at negative gross margins, where you're wrapping money around every part that you're shipping.

因此，我們發現 Atmel 的企業或針對特定客戶的特定產品線的毛利率為負，在這些企業中，你要在運送的每個零件上都花錢。

And some of that happening even on non-commodity products, even microcontrollers and why would you do that?

其中一些甚至發生在非商品產品上，甚至是微控制器上，為什麼要這樣做？

So I think as we tried to correct those things, I put the brand in three different categories, three different positioning, and let me take that angle from a marketing standpoint.

所以我認為，當我們試圖糾正這些問題時，我將品牌分為三個不同的類別，三個不同的定位，讓我從行銷的角度來看待這個角度。

A Company has a brand position, which is really, what do the customers think of the company?

一個公司有一個品牌定位，也就是顧客對這個公司的看法如何？

Then a company has a product position -- positioning where what does the customer think of companies' products?

那麼企業有產品定位－定位顧客對企業產品的看法？

And then the third, a company has a pricing position where what do the customers think of the value the company provides to the customers on its products?

第三，公司的定價地位是客戶如何看待公司為其產品提供給客戶的價值？

So positioning is important three different ways: brand positioning, product positioning, and pricing positioning.

所以定位很重要三個不同的面向：品牌定位、產品定位和定價定位。

When I lock at Microchip, I find us very strong in all three.

當我鎖定 Microchip 時，我發現我們在這三個方面都非常強大。

We have a good brand reputation, we have good product positioning, and we have good pricing positioning where we are able to draw very, very good pricing by customers seeing the value in our products; that's how we make near 60% gross margin.

我們有良好的品牌聲譽，我們有良好的產品定位，我們有良好的定價定位，透過客戶看到我們產品的價值，我們能夠獲得非常非常好的定價；這就是我們如何獲得近 60% 的毛利率。

When I apply the same principle to Atmel, I find they have a good product positioning, and Ganesh and I mentioned that we find good products.

當我將同樣的原則應用到 Atmel 時，我發現他們有很好的產品定位，我和 Ganesh 提到我們找到了很好的產品。

The Company probably has just an okay brand position as a Company, but it has a very poor pricing positioning where it hasn't positioned its products to be able to show the value to the customer and the sell them like jellybeans.

作為一家公司，該公司可能擁有不錯的品牌定位，但它的定價定位非常糟糕，它沒有將其產品定位為能夠向客戶展示價值並像軟糖一樣銷售它們。

So as Microchip starts to put that discipline in place and there are common customers where we do business with, and they're the same customers that Atmel does business with, and that's something in paper where some ex-executives are blathering about and being pissed off or whatever because they no longer have a job or the cheese has been moved.

因此，當 Microchip 開始實施這項紀律時，我們與一些共同的客戶有業務往來，而他們與 Atmel 也有業務往來，這就是一些前高管在紙上喋喋不休並感到憤怒的事情。關閉或其他什麼原因，因為他們不再有工作或起司已被移動。

But all these customers are doing business with Microchip, and they are doing business with Microchip.

但所有這些客戶都在與 Microchip 開展業務，而且他們也在與 Microchip 開展業務。

We're able to position our products at a much higher value, and we have substantially higher gross margin at the same customers where Atmel has a very poor gross margin.

我們能夠將我們的產品定位在更高的價值，並且我們在相同客戶處的毛利率要高得多，而 Atmel 的毛利率非常低。

So we have no large customers that are designing out because of this in any way; if anything, it's a converse.

所以我們沒有大客戶因此而以任何方式進行設計；如果有什麼不同的話，那就是相反。

We have more conversations with large customers recognizing that the combined Companies, Microchip and Atmel, to them represent a much more strategic supplier to them and wanting to have more discussions in that direction.

我們與大客戶進行了更多對話，認識到合併後的公司（Microchip 和 Atmel）對他們來說代表著更具戰略意義的供應商，並希望在這個方向上進行更多討論。

Then on the top of that, the sales force is commissioned, Atmel's sales force is commissioned.

然後最重要的是，銷售隊伍被委託，Atmel 的銷售隊伍被委託。

Microchip is not.

微晶片不是。

And we have had conversations with salespeople where we say this is a negative gross margin business.

我們與銷售人員進行了交談，我們說這是一項毛利率為負的業務。

Why do you do that?

為什麼這麼做？

Well I'm making commission on it.

好吧，我正在從中賺取佣金。

You can't take it away.

你不能把它拿走。

So as you start to interrupt that environment and start to change that culture, you will get reaction from those people.

因此，當你開始中斷這個環境並開始改變這個文化時，你會得到那些人的反應。

And then somebody talks to the press.

然後有人接受媒體採訪。

That's what you have read.

這就是你讀過的內容。

We are doing what our investors would want us to do is to have three better positionings: brand, products, and pricing.

我們正在做投資者希望我們做的事情，那就是擁有三個更好的定位：品牌、產品和定價。

It is very helpful and just a couple of just very quick clarifications around Atmel.

它非常有幫助，並且只是對 Atmel 的一些非常快速的澄清。

Could you clarify what sell-in revenue is next quarter?

您能否澄清一下下個季度的銷售收入是多少？

I think the $225 million to $245 million is sell-through.

我認為 2.25 億至 2.45 億美元是售罄率。

And then one other clarification, I think you mentioned $14 million is excluded from revenue for Atmel around the mobile touch, and I thought last quarter was maybe $6 million to $7 million.

然後還有一個澄清，我想你提到 Atmel 在行動觸控方面的收入不包括 1400 萬美元，我認為上個季度可能是 600 萬到 700 萬美元。

And maybe just help me reconcile those two figures, thank you very much.

也許可以幫我協調這兩個數字，非常感謝。

So $6 million to $7 million is based on sell-in and the inventory was very, very high.

因此，600 萬至 700 萬美元是基於銷售量計算的，而且庫存非常非常高。

The sell-through was $14 million -- around $14 million, so that's the difference on your second question.

銷售額為 1400 萬美元——大約 1400 萬美元，所以這就是第二個問題的差異。

Regarding what is the sell-in revenue this quarter, we don't care.

至於本季的銷售收入是多少，我們並不在乎。

We really don't care.

我們真的不在乎。

We're not going to stop the channel.

我們不會停止該頻道。

We're not going to make any deals; that's another thing Atmel did, they basically made deals at the end of the quarter at the lower prices and made deals with the distribution to give whatever so that a given revenue could be reported.

我們不會做任何交易；這是 Atmel 所做的另一件事，他們基本上在季度末以較低的價格達成交易，並與分銷商達成交易，以提供一切，以便可以報告給定的收入。

We do not care about the sell-in.

我們不關心賣出情況。

We never cared about sell-in on the Microchip side.

我們從不關心 Microchip 方面的賣出情況。

We're going to work with the distributors to create demand and sell business to end customers at better prices, and whatever distributors want to start, we don't care about sell in.

我們將與經銷商合作創造需求，以更優惠的價格向最終客戶出售業務，無論經銷商想開始什麼，我們都不在乎銷售。

Thank you very much.

非常感謝。

You're welcome.

不客氣。

Next question comes from Gil Alexander with Darfil Associates.

下一個問題來自 Darfil Associates 的 Gil Alexander。

My questions been answered thank you very much.

我的問題得到了解答，非常感謝。

Thank you.

謝謝。

Next question comes from Mark Lipacis with Jefferies.

下一個問題來自 Jefferies 的 Mark Lipacis。

Thanks for taking my question.

感謝您提出我的問題。

First one is a clarification I think.

第一個是我認為的澄清。

If I wanted to compare like apples to apples on revenues going forward, the touch business comes out of the top line.

如果我想像蘋果與蘋果一樣比較未來的收入，那麼觸控業務就來自營收。

Did you say the 32-bit PIC business comes out of the top line and the Atmel wireless comes out of the top line going forward?

您是否說過 32 位元 PIC 業務將來自營收，Atmel 無線業務將來自營收？

And then aggregate, about could you share with us what that was in the previous quarter?

然後總的來說，您能與我們分享上一季的情況嗎？

Mark I don't know how you got all that.

馬克，我不知道你是怎麼得到這一切的。

The only thing that comes out of the top line is the mobile piece of the touch business.

唯一來自營收的是觸摸業務的移動部分。

We're dividing the touch business into two portions: the automotive and industrial on one side, which we are keeping, and then the mobile touch on the other side, which we are not keeping.

我們將觸控業務分為兩部分：一方面是汽車和工業，我們保留了這一部分，然後是移動觸摸，另一部分是我們不保留的。

Which last quarter was $7 million on sell in, about $14 million on sell through; that's the only thing that's coming out.

上個季度的售入額為 700 萬美元，售出額約為 1,400 萬美元；這是唯一出來的東西。

Nothing else is coming from the top line.

頂線沒有其他任何消息。

I don't know how you got wireless.

不知道你的無線是怎麼來的

So the PIC microprocessor that Ganesh mentioned earlier, that was a project that was in development at Microchip.

Ganesh 先前提到的 PIC 微處理器是 Microchip 正在開發的專案。

That was not producing revenue.

那並沒有產生收入。

Okay.

好的。

Yes, so it was a brand new initiative at Microchip.

是的，所以這是 Microchip 的一項全新舉措。

In addition to our 32-bit PIC microcontroller line, we were going to develop a PIC microprocessor line, which is, they are higher end [codes], they don't have flash, it goes in a different market, they use Linux Operating System.

除了我們的 32 位元 PIC 微控制器系列之外，我們還打算開發 PIC 微處理器系列，也就是說，它們是更高階的[程式碼]，它們沒有快閃記憶體，它面向不同的市場，它們使用 Linux 操作系統。

It was a very, very large investment and Atmel has already made that investment and had significant revenue on it.

這是一項非常非常大的投資，Atmel 已經進行了這項投資，並從中獲得了可觀的收入。

So we are not going to make those investments on our sides.

因此，我們不會在我們這邊進行這些投資。

But there was $0 revenue, there was not even a revenue on it in the next year.

但收入為0美元，甚至第二年都沒有收入。

Okay.

好的。

And then nothing comes out of the wireless.

然後無線就什麼都沒有輸出了。

We -- Atmel ran a very, very small wireless business out of seven different design centers, and we closed one of them which was in Germany in a very high cost region.

我們－Atmel 在七個不同的設計中心經營著一家非常非常小的無線業務，我們關閉了其中一個位於德國成本非常高的地區的中心。

Okay that's helpful.

好的，這很有幫助。

And we sell those products and market those products.

我們銷售這些產品並行銷這些產品。

It was a very small revenue coming out of that center, so there's nothing else.

中心的收入非常少，所以沒有其他的。

It's only the mobile touch.

這只是移動觸摸。

Understand, thanks for clarifying.

明白了，謝謝澄清。

And then I imagine there will be a restructuring charge in the June quarter.

然後我想六月季度將會有重組費用。

Is there a way to estimate that or give us a sense of how big that might be?

有沒有辦法估計或讓我們了解它可能有多大？

We don't have it.

我們沒有。

We're not going to give you a number and then be limited in any way to really live to that number.

我們不會給你一個數字，然後以任何方式限制你真正活到這個數字。

So restructuring charge will be whatever it will be.

因此，重組費用將是多少。

Fair enough, thank you.

很公平，謝謝。

With no further questions in queue, I'd like to turn the conference back over to management for closing remarks.

由於沒有其他問題，我想將會議轉回管理層進行閉幕致詞。

Okay, we thank everyone for attending the call and asking some nice questions.

好的，我們感謝大家參加電話會議並提出一些很好的問題。

We'll see some of you on the road.

我們會在路上見到你們中的一些人。

There's some conferences coming up.

一些會議即將召開。

I'll personally be at the JPMorgan conference in Boston, and Eric you will be?

我將親自參加在波士頓舉行的摩根大通會議，艾瑞克你也會參加嗎？

So we're going to have to revisit the schedule, but we're at another conference in early June.

因此，我們將不得不重新審視日程安排，但我們將在六月初參加另一場會議。

With that, thank you very much.

在此，非常感謝。

Ladies and gentlemen, that does conclude today's conference.

女士們、先生們，今天的會議到此結束。

We do thank you for your participation, and you may now disconnect.

我們非常感謝您的參與，您現在可以斷開連接。

Have a great rest of your day.

祝您有個愉快的一天。