微晶片科技 (MCHP) 2019 Q3 法說會逐字稿

Good day, everyone, and welcome to the Microchip's Third Quarter Fiscal 2019 Financial Results Conference Call.

大家好，歡迎參加 Microchip 2019 財年第三季度財務業績電話會議。

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

提醒一下，今天的通話正在錄音中。

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

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

Please go ahead, sir.

請繼續，先生。

Thank you and good afternoon, everyone.

謝謝，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，我們將對未來事件或公司未來的財務業績做出預測和其他前瞻性陳述。

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

我們想提醒您，此類陳述是預測，實際事件或結果可能存在重大差異。

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

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

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

今天和我一起出席的有 Microchip 董事長兼首席執行官 Steve Sanghi； Microchip 總裁兼首席運營官 Ganesh Moorthy。

I will comment on our third quarter fiscal year 2019 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 our integration activities associated with the Microsemi acquisition.

我將評論我們 2019 財年第三季度的財務業績，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意見，並提供與 Microsemi 收購相關的整合活動的最新情況。

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問題。

I want to remind you that we are including information in our press release in this conference call on various GAAP and non-GAAP measures.

我想提醒您，我們在本次電話會議的新聞稿中包含了有關各種 GAAP 和非 GAAP 措施的信息。

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 調節表，我們相信您在比較 GAAP 和非 GAAP 結果時會發現它很有用。

I want to remind investors that during the quarter ending June 30, 2018, we adopted a new GAAP revenue recognition standard, which requires revenue to be recognized at the time products are sold to distributors versus our historical revenue recognition policy where revenue on such transactions were deferred until the product was sold by our distributors to an end customer.

我想提醒投資者，在截至 2018 年 6 月 30 日的季度中，我們採用了新的 GAAP 收入確認標準，該標準要求在將產品出售給分銷商時確認收入，而我們的歷史收入確認政策是此類交易的收入是推遲到我們的分銷商將產品出售給最終客戶。

We recently went through a comment letter process with the SEC regarding our non-GAAP reporting.

我們最近與 SEC 就我們的非 GAAP 報告進行了評論函流程。

As a result of this process, we will now be referring to what we used to call non-GAAP revenue as a metric called end-market demand and we'll provide this metric in our earnings release each quarter.

作為這一過程的結果，我們現在將過去稱為非 GAAP 收入的指標稱為終端市場需求，我們將在每個季度的收益發布中提供該指標。

End-market demand is the net dollar amount of our products, licensing revenue and other services delivered to our direct customers to non-distributors and buyer distributors to their customers.

終端市場需求是我們的產品、許可收入和其他服務交付給我們的直接客戶給非分銷商和買方分銷商給他們的客戶的淨美元金額。

We are able to calculate end-market demand by our distributors based on information that our distributors provide to us about their product shipments to their customers and inventory holdings.

我們能夠根據我們的分銷商提供給我們的關於他們向客戶發貨的產品和庫存量的信息來計算我們的分銷商的終端市場需求。

The value of end-market demand from our distributors is calculated as the net of transaction value of these shipments.

我們分銷商的終端市場需求價值計算為這些貨物的交易價值的淨值。

We will continue to manage our business and distributor relationships based on creating and fulfilling end-market demand.

我們將繼續根據創造和滿足終端市場需求來管理我們的業務和分銷商關係。

All of Microchip's bonus programs will continue to work based on end-market demand.

Microchip 的所有獎勵計劃將繼續根據終端市場需求實施。

Therefore, along with our GAAP and non-GAAP results based on distribution sell-in, we will also provide investors with our end-market demand based on distribution sell out but will not provide a P&L based on end-market demand.

因此，除了我們基於分銷銷售的 GAAP 和非 GAAP 結果，我們還將向投資者提供基於分銷銷售的終端市場需求，但不會提供基於終端市場需求的損益表。

So even though we are changing our guidance practice going forward, for transition purposes, today, we will provide a review of our Q3 results compared to our non-GAAP guidance provided on November 7, 2018, using our historical non-GAAP nomenclature.

因此，儘管我們正在改變我們未來的指導實踐，但出於過渡目的，今天，我們將使用我們的歷史非 GAAP 命名法，將我們的第三季度結果與 2018 年 11 月 7 日提供的非 GAAP 指導進行比較。

Our guidance going forward will reflect the outcome of the SEC comment letter process, which Steve will also comment on during his remarks about our guidance for the March 2019 quarter.

我們未來的指引將反映美國證券交易委員會評論信流程的結果，史蒂夫也將在他對我們 2019 年 3 月季度的指引發表評論時發表評論。

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 these results on a non-GAAP basis using end-market demand metric as expenses and expenses prior to the effects of our acquisition activities and share-based compensation.

我將在非 GAAP 基礎上使用終端市場需求指標作為我們的收購活動和基於股份的薪酬影響之前的費用和費用來參考這些結果。

End-market demand in the December quarter was $1.416 billion, above the midpoint of our guidance, which was $1.4 billion, and down 6.4% sequentially from end-market demand of $1.513 billion in the immediately preceding quarter.

12 月季度的終端市場需求為 14.16 億美元，高於我們指引的中點 14 億美元，較上一季度的終端市場需求 15.13 億美元環比下降 6.4%。

We have posted a summary of our end-market demand and GAAP net sales by product line and geography on our website for your reference.

我們已在我們的網站上按產品線和地理位置發布了我們的終端市場需求和 GAAP 淨銷售額摘要，供您參考。

On a non-GAAP basis, gross margins were a record 62.2%, operating expenses were 24.8% of end-market demand and operating income was $530 million and 37.4% of end-market demand.

按非美國通用會計準則計算，毛利率達到創紀錄的 62.2%，營業費用佔終端市場需求的 24.8%，營業收入為 5.3 億美元，佔終端市場需求的 37.4%。

Non-GAAP net income was $405.6 million and non-GAAP earnings per diluted share was $1.66 and was $0.095 above the midpoint of our guidance of $1.565.

非 GAAP 淨收入為 4.056 億美元，非 GAAP 每股攤薄收益為 1.66 美元，比我們 1.565 美元的指引中點高出 0.095 美元。

On a GAAP basis, net sales in the December quarter were $1.375 billion, GAAP gross margins were 56.7% and include the impact of $3.4 million of share-based compensation, $74.3 million of acquired inventory valuation cost and $23.8 million impact from the differences in GAAP revenue and end-market demand.

根據 GAAP，12 月季度的淨銷售額為 13.75 億美元，GAAP 毛利率為 56.7%，其中包括 340 萬美元的股權補償的影響、7430 萬美元的收購庫存估值成本和 2380 萬美元的 GAAP 差異影響收入和終端市場需求。

All operating expenses were $584.9 million and include acquisition and intangible amortization of $193.7 million, special income of $1.3 million, $5.4 million of acquisition-related and other costs and share-based compensation of $36 million.

所有運營費用為 5.849 億美元，包括 1.937 億美元的收購和無形攤銷、130 萬美元的特殊收入、540 萬美元的收購相關成本和其他成本以及 3600 萬美元的股權補償。

The GAAP net income was $49.2 million or $0.20 per diluted share and includes onetime tax expense of $0.4 million related to a variety of matters, including tax reserve releases due to audit settlements, statute of limitations expiring, tax reform and transition tax refinement and fiscal 2018 tax provision to tax return adjustments.

GAAP 淨收入為 4920 萬美元或每股攤薄收益 0.20 美元，包括與各種事項相關的一次性稅項支出 40 萬美元，包括因審計和解、訴訟時效到期、稅收改革和過渡稅細化以及 2018 財年而釋放的稅收儲備金納稅申報調整的稅收撥備。

The non-GAAP cash tax rate was 3.5% in the December quarter and we expect a similar rate for all of fiscal year 2019.

非 GAAP 現金稅率在 12 月季度為 3.5%，我們預計 2019 財年全年的稅率相似。

We expect our non-GAAP cash tax rate for fiscal '20 and fiscal '21 to be 5% or less, exclusive of the transition tax, any potential tax associated with the restructuring of the Microsemi operations into the Microchip global structure and any tax audit settlements related to taxes accrued in prior fiscal years.

我們預計 20 財年和 21 財年的非 GAAP 現金稅率為 5% 或更低，不包括過渡稅、與將 Microsemi 業務重組為 Microchip 全球結構相關的任何潛在稅收以及任何稅務審計與前一財政年度應計稅款相關的結算。

We have many tax attributes and net operating losses and tax credits as well as U.S. interest deductions that we believe will keep our cash tax payments low.

我們有許多稅收屬性和淨營業虧損和稅收抵免以及美國利息減免，我們相信這將使我們的現金納稅額保持在較低水平。

The cash tax payments associated with the transition tax for the combined Microchip-Microsemi group is expected to be about $293 million and will be paid over 8 years.

與合併後的 Microchip-Microsemi 集團的過渡稅相關的現金稅款預計約為 2.93 億美元，將在 8 年內支付。

We have a posted schedule of our projected transition tax payments on the Investor Relations page of our website.

我們在我們網站的投資者關係頁面上發布了預計的過渡稅支付時間表。

For GAAP purposes, we had a significant tax benefit in the current quarter for a variety of reasons discussed earlier.

就 GAAP 而言，由於前面討論的各種原因，我們在本季度獲得了顯著的稅收優惠。

Moving on to the balance sheet.

轉到資產負債表。

Our inventory balance at December 31, 2018 was $702.5 million.

我們在 2018 年 12 月 31 日的庫存餘額為 7.025 億美元。

All of the inventory markup from Microsemi required for GAAP post-accounting has now been sold through and is no longer reflected in the ending inventory balance.

GAAP 後會計所需的所有 Microsemi 庫存加價現已售出，不再反映在期末庫存餘額中。

We had 123 days of inventory at the end of December quarter, up 6 days from the prior quarter's levels.

我們在 12 月季度末的庫存天數為 123 天，比上一季度的水平增加了 6 天。

Inventory at our distributors in the December quarter were 36 days compared to 37 days at the end of September.

我們經銷商在 12 月季度的庫存為 36 天，而 9 月底為 37 天。

We believe that our distributors are holding an appropriate level of inventory to support end-market demand.

我們相信我們的分銷商持有適當水平的庫存以支持終端市場需求。

The cash flow from operating activities was $481.5 million in the December quarter.

去年第四季度經營活動產生的現金流量為 4.815 億美元。

As of December 31, the consolidated cash and total investment position was $436.2 million.

截至 12 月 31 日，綜合現金和總投資頭寸為 4.362 億美元。

We paid down $377.5 million of total debt in the December quarter and the net debt on the balance sheet reduced by $349.4 million.

我們在 12 月季度償還了 3.775 億美元的總債務，資產負債表上的淨債務減少了 3.494 億美元。

At December 31, our debt outstanding includes $2.743 billion of borrowings under our line of credit, $2.713 billion of term loan B, $2 billion on high-grade bonds and $4.481 billion of convertible debt.

截至 12 月 31 日，我們的未償債務包括 27.43 億美元的信用額度借款、27.13 億美元的定期貸款 B、20 億美元的高級債券和 44.81 億美元的可轉換債券。

Our net debt-to-EBITDA, excluding our very long-dated convertible debt that matures in 2037 and is more equity-like in nature, was 4.8 at December 31.

截至 12 月 31 日，我們的淨債務與 EBITDA 之比為 4.8，不包括 2037 年到期且性質更類似股權的超長期可轉換債券。

Our net leverage metrics are based on a 12-month trailing EBITDA which will continue to provide some headwinds due to significant distribution inventory reductions that were made in the June and September quarter for Microsemi, which caused our shipment activity to be significantly less than end-market demand during these periods.

我們的淨槓桿指標基於過去 12 個月的 EBITDA，由於 Microsemi 在 6 月和 9 月季度顯著減少分銷庫存，這將繼續帶來一些不利因素，這導致我們的出貨活動明顯低於年底 -這些時期的市場需求。

The weak economic environment also has negatively impacted our EBITDA in the December 2018 quarter and will continue to do so in the March 2019 quarter.

疲軟的經濟環境也對我們 2018 年 12 月季度的 EBITDA 產生了負面影響，並將在 2019 年 3 月季度繼續如此。

We are committed to using substantially all of our excess cash generation beyond our dividend payments to reduce our debt levels and we expect our debt levels to reduce significantly over the next several years.

我們致力於使用除股息支付之外的幾乎所有超額現金產生來降低我們的債務水平，我們預計我們的債務水平將在未來幾年顯著降低。

Our dividend payment in the December quarter was $86.3 million.

我們在 12 月季度支付的股息為 8630 萬美元。

Capital expenditures were $27.4 million in the December quarter.

12 月季度的資本支出為 2740 萬美元。

We expect about $45 million in capital spending in the March quarter and overall capital expenditures for fiscal year 2019 to be about $235 million.

我們預計 3 月季度的資本支出約為 4500 萬美元，2019 財年的總體資本支出約為 2.35 億美元。

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

我們繼續增加資本以支持我們新產品和技術生產能力的增長，並將更多目前外包的組裝和測試業務引入內部。

These capital investments will bring some gross margin improvement to our business, particularly for the outsourced to Atmel and Microsemi manufacturing activities that we are bringing into our own factories.

這些資本投資將為我們的業務帶來一定的毛利率改善，特別是對於我們正在引入我們自己工廠的外包給 Atmel 和 Microsemi 的製造活動。

Depreciation expense in the December quarter was $47 million.

12 月季度的折舊費用為 4700 萬美元。

I will now turn it over to Ganesh to give us comments on the performance of the business in the December quarter and provide an update on some of the Microsemi integration activities.

我現在將把它轉交給 Ganesh，讓我們對 12 月季度的業務表現發表評論，並提供一些 Microsemi 集成活動的最新情況。

Ganesh?

像頭神？

Thank you, Eric, and good afternoon, everyone.

謝謝埃里克，大家下午好。

Before I get started, I'd like to clarify that the product line comparisons I would be sharing with you are based on an end-market demand metric, which is how Microchip measures this performance internally.

在開始之前，我想澄清一下，我將與您分享的產品線比較是基於終端市場需求指標，這是 Microchip 內部衡量這種性能的方式。

Let's start by taking a closer look at microcontrollers.

讓我們從仔細研究微控制器開始。

Our microcontroller business was sequentially down 8.7% compared to the September quarter, reflecting a broad macro weakness in the markets we serve.

與 9 月季度相比，我們的微控制器業務環比下降 8.7%，反映出我們所服務的市場普遍存在宏觀疲軟。

Microcontrollers, however, were up 13.2% from the year-ago quarter.

然而，微控制器比去年同期增長了 13.2%。

Microcontrollers represented 52.9% of our revenue in the December quarter.

微控制器占我們 12 月季度收入的 52.9%。

During the quarter, we continue to introduce a steady stream of innovative new microcontrollers, ranging from the industry's lowest power LoRa System-in-Package family; the single-chip maXTouch touchscreen controllers for screens up to 20 inches in size; to Intelligent Network Interface Controller technology, the industry's most efficient automotive infotainment networking solution that supports all data types, including audio, video, control and Ethernet over a single cable.

在本季度，我們繼續推出源源不斷的創新微控制器，包括業界最低功耗的 LoRa 系統級封裝系列；適用於最大 20 英寸屏幕的單芯片 maXTouch 觸摸屏控制器；到智能網絡接口控制器技術，這是業界最高效的汽車信息娛樂網絡解決方案，支持所有數據類型，包括通過單根電纜的音頻、視頻、控制和以太網。

In my prepared remark last quarter, I mentioned that our microcontroller business was annualizing at over $3 billion in end-market revenue.

在我上個季度準備好的發言中，我提到我們的微控制器業務年化終端市場收入超過 30 億美元。

Through our subsequent investor meetings, there seemed to be the perception that our 32-bit microcontroller business was not very big.

通過我們隨後的投資者會議，似乎有一種看法認為我們的 32 位微控制器業務不是很大。

To address this perception gap, we'd like to share with you that over the last 2 quarters, our 32-bit microcontroller business is annualizing at over $1.2 billion in end-market revenue.

為了解決這一認知差距，我們想與您分享，在過去兩個季度中，我們的 32 位微控制器業務的終端市場年收入超過 12 億美元。

The 2018 microcontroller rankings from Gartner are normally available in April and, as we have seen in prior years' results, we expect to see significant market share gains again.

Gartner 的 2018 年微控制器排名通常在 4 月份公佈，正如我們在往年的結果中看到的那樣，我們預計市場份額將再次大幅增長。

We will report on these results during our next conference call.

我們將在下次電話會議上報告這些結果。

Now moving to analog.

現在轉向模擬。

Our analog business was sequentially down 6.2% compared to the September quarter, reflecting the same broad macro weakness our microcontroller business experienced.

與 9 月季度相比，我們的模擬業務環比下降 6.2%，反映出我們的微控制器業務經歷了同樣廣泛的宏觀疲軟。

Analog, however, was up 77.9% from the year-ago quarter.

然而，Analog 比去年同期增長了 77.9%。

Analog represented 29.1% of our revenue in the December quarter.

模擬業務占我們 12 月季度收入的 29.1%。

And during the quarter, we continued to introduce a steady stream of innovative analog products as well, including the industry's smallest multi-output MEMS clock generator, the industry's smallest 5-channel temperature sensor and the most robust silicon carbide diodes and MOSFETs in the industry.

在本季度，我們還繼續推出源源不斷的創新模擬產品，包括業界最小的多輸出 MEMS 時鐘發生器、業界最小的 5 通道溫度傳感器以及業界最強大的碳化矽二極管和 MOSFET .

Our FPGA revenue hit another all-time record even after going back to the Microsemi and Actel history with 8.7% sequential growth compared to the September quarter.

即使回到 Microsemi 和 Actel 的歷史之後，我們的 FPGA 收入也創下了歷史新高，與 9 月季度相比環比增長 8.7%。

Our low-power, midrange PolarFire family continues to go on a -- garner strong market acceptance, while the prior generations continues to demonstrate consistent growth even in the current market environment.

我們的低功率、中端 PolarFire 系列繼續獲得強大的市場認可，而前幾代產品即使在當前的市場環境中也繼續表現出持續的增長。

We also unveiled the industry's first RISC-V system on a chip FPGA architecture, combining the industry's lowest power midrange PolarFire FPGA family with a complete microprocessor subsystem based on the open, royalty-free RISC-V instruction set architecture.

我們還推出了業界首款 RISC-V 片上系統 FPGA 架構，將業界功耗最低的中端 PolarFire FPGA 系列與基於開放、免版稅 RISC-V 指令集架構的完整微處理器子系統相結合。

FPGA represented 7% of our revenue in the December quarter.

FPGA 占我們 12 月季度收入的 7%。

Next, moving to our licensing business.

接下來，轉向我們的許可業務。

This business is sequentially up 7.9% as compared to the September quarter.

與 9 月季度相比，該業務環比增長 7.9%。

Our results reflect the sale of another type of license for a specific set of patents that can be used in noncompetitive fields of use.

我們的結果反映了可用於非競爭性使用領域的一組特定專利的另一種類型許可的銷售。

We anticipate that this patent license to close in the December quarter and include it in our guidance.

我們預計該專利許可將在 12 月季度結束，並將其納入我們的指導中。

We continue to retain indefinite rights to these patents for the field of use that are of interest to us.

對於我們感興趣的使用領域，我們繼續保留對這些專利的無限期權利。

Our patent licensing strategy is to monetize portions of the substantial patent portfolio we inherited through our acquisitions by licensing select patents to players in noncompetitive fields of use.

我們的專利許可策略是通過向非競爭性使用領域的參與者許可精選專利，將我們通過收購繼承的大量專利組合的一部分貨幣化。

In all cases, we retain rights to use these patents in our products as well.

在所有情況下，我們也保留在我們的產品中使用這些專利的權利。

We had meaningful patent license transactions in September and December quarters.

我們在 9 月和 12 月季度進行了有意義的專利許可交易。

Investors should expect that the revenue contribution in the future from this effort will be lumpy from quarter-to-quarter.

投資者應該預料到，這項努力未來的收入貢獻將逐季波動。

We do not expect meaningful contribution from the patent licensing in the March quarter.

我們預計 3 月季度的專利許可不會做出有意義的貢獻。

Our memory business was sequentially down 15% in the December quarter as compared to the September quarter.

與 9 月季度相比，我們的內存業務在 12 月季度環比下降了 15%。

And finally, our multi-market and other business was down 3% sequentially compared to the September quarter.

最後，與 9 月季度相比，我們的多市場和其他業務環比下降了 3%。

A quick update about the Microsemi integration.

有關 Microsemi 集成的快速更新。

Business units, sales, operations and support groups are all making rapid progress.

業務部門、銷售、運營和支持團隊都在快速進步。

Our thanks and kudos go out to the combined company employees who are working hand-in-hand to achieve the accelerated synergy results.

我們要感謝合併後的公司員工，他們攜手合作，實現了加速的協同效應。

Overall, we are ahead of our synergy targets and expect continued synergy gains for many quarters to come.

總體而言，我們領先於我們的協同目標，並預計未來許多季度將繼續實現協同收益。

What will take us the longest is the business systems and operations integration, which is being done in phases.

花費我們時間最長的是業務系統和運營整合，這是分階段進行的。

The first phase where one of the business units went live on November 1, 2018.

其中一個業務部門於 2018 年 11 月 1 日上線的第一階段。

The second phase just went live on February 1 and involved 3 more business units, and more phased releases are planned with a steady cadence.

二期2月1日剛剛上線，新增3個業務單元，更多階段性發布正在穩步推進中。

We expect the overall business and operational integration will take about 15 to 18 more months to complete.

我們預計整體業務和運營整合將需要大約 15 到 18 個月才能完成。

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

現在讓我把它轉交給史蒂夫，徵求他對我們的業務和我們未來的指導的一些評論。

Steve?

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 third quarter of 2019.

今天，我想首先回顧一下 2019 財年第三季度的業績。

I will then provide update on our progress at Microsemi.

然後我將提供我們在 Microsemi 的最新進展。

I will then provide guidance for fiscal fourth quarter of 2019.

然後我將提供 2019 財年第四季度的指導。

Our December quarter non-GAAP financial results based on end-market demand exceeded our guidance for net sales, gross margin percentage, operating profit -- operating margin percentage and earnings per share.

我們基於終端市場需求的 12 月季度非 GAAP 財務業績超過了我們對淨銷售額、毛利率、營業利潤——營業利潤率和每股收益的指導。

Our consolidated non-GAAP gross margin reached an all-time record at 62.2% of net sales and exceeded the midpoint of our guidance by about 100 basis points.

我們的綜合非 GAAP 毛利率達到淨銷售額的 62.2%，創下歷史新高，超出我們指引的中點約 100 個基點。

Our consolidated non-GAAP operating margins were strong at 37.4% of sales and exceeded the midpoint of guidance by about 130 basis points.

我們的綜合非 GAAP 營業利潤率強勁，佔銷售額的 37.4%，超出指導的中點約 130 個基點。

Our consolidated non-GAAP EPS exceeded the midpoint of our guidance by $0.095 per share.

我們的合併非 GAAP 每股收益超出我們指導的中點 0.095 美元/股。

We are pleased with the financial results despite a very unfavorable business environment with the tariffs, slowdown in China, the European automotive issues, higher interest rates and under absorption charges from some of our factories.

儘管關稅、中國經濟放緩、歐洲汽車問題、更高的利率以及我們一些工廠的吸收費用等非常不利的商業環境，但我們對財務業績感到滿意。

Let me also touch on the performance of Microsemi.

我還要談談 Microsemi 的性能。

Microsemi's non-GAAP operating profit reached a record.

美高森美的非美國通用會計準則營業利潤創下歷史新高。

We are systematically improving Microsemi's financial performance and realizing significant synergies.

我們正在系統地改善 Microsemi 的財務業績並實現顯著的協同效應。

At the time of our announcement of Microsemi acquisition, we had guided to $0.75 attrition run rate after the first year.

在我們宣布收購 Microsemi 時，我們將第一年後的損耗率指導為 0.75 美元。

After nearly 7 months, we are well ahead of the $0.75 run rate for attrition from Microsemi.

在將近 7 個月後，我們遠遠領先於美高森美 0.75 美元的減員率。

On non-GAAP basis, this was also our 113th consecutive profitable quarter.

在非 GAAP 基礎上，這也是我們第 113 個連續盈利的季度。

I want to thank all employees of Microchip, including employees from our acquisitions, for their contribution.

我要感謝 Microchip 的所有員工，包括我們收購的員工所做的貢獻。

Now let me provide you some further update on the progress we have made with the Microsemi integration.

現在讓我向您提供一些關於我們在 Microsemi 集成方面取得的進展的進一步更新。

First, distribution inventory.

一是分銷庫存。

After reducing the inventory and distribution channel in the September quarter, Microsemi distribution inventory remained stable at 2.6 months in the December quarter.

在 9 月季度減少庫存和分銷渠道後，Microsemi 分銷庫存在 12 月季度保持穩定在 2.6 個月。

We believe that at the current levels, distribution is holding the amount of inventory it needs to support the end-market demand.

我們認為，在目前的水平上，分銷持有支持終端市場需求所需的庫存量。

In last quarter's earnings conference call, we discussed moving several Microsemi customers back to being serviced directly that Microsemi had transferred to distribution.

在上一季度的收益電話會議上，我們討論了讓 Microsemi 的幾個客戶重新獲得 Microsemi 已轉移到分銷商的直接服務。

We completed this transition during the December quarter.

我們在 12 月季度完成了這一過渡。

Microsemi internal inventory.

Microsemi 內部庫存。

Microsemi's internal inventories are still high as we continue to maintain lower loadings in Microsemi's internal factories as well as subcontractors until the inventory comes in line.

Microsemi 的內部庫存仍然很高，因為我們繼續維持 Microsemi 內部工廠和分包商的較低負荷，直到庫存符合要求。

As we said from the beginning, Microsemi has very good engineering teams and very good products.

正如我們從一開始就說過的，Microsemi 擁有非常優秀的工程團隊和非常好的產品。

The customers' pockets are sticky and we continue to believe there are very good end-market opportunities for the combined company.

客戶的口袋很粘，我們仍然相信合併後的公司有很好的終端市場機會。

Our strategy for the better part of this decade has been to buy businesses and turn them into world-class performers in the likes of Microchip.

在這十年的大部分時間裡，我們的戰略一直是收購企業，並將它們變成像 Microchip 這樣的世界級企業。

Here, we started with excellent products, excellent gross margins and excellent engineering teams.

在這裡，我們從優秀的產品、優秀的毛利率和優秀的工程團隊開始。

With distributor and contract manufacturing inventories reduced and with Microchip's operating expense approach, we are optimistic about achieving our long-term targets for attrition from Microsemi.

隨著分銷商和合同製造庫存的減少以及 Microchip 的運營費用方法，我們對實現從 Microsemi 流失的長期目標持樂觀態度。

So far, we are ahead of our original target.

到目前為止，我們已經領先於最初的目標。

Now regarding guidance going forward.

現在關於未來的指導。

Beginning with this March quarter, as Eric mentioned, we are changing the information included in our financial guidance in response to comments and discussions with the staff of the Securities and Exchange Commission.

正如 Eric 提到的，從這個三月季度開始，我們正在更改財務指南中包含的信息，以響應與美國證券交易委員會工作人員的評論和討論。

After the GAAP standard change to sell-in revenue recognition, we continued to provide guidance and track our results based on sell-through revenue recognition and refer to the sell-through revenue as non-GAAP net sales.

在 GAAP 標準更改為銷售收入確認後，我們繼續根據銷售收入確認提供指導和跟踪我們的結果，並將銷售收入稱為非 GAAP 淨銷售額。

After the adoption of ASC 606, the feedback we received from investors and sell-side analysts had been very positive on a continuing use of sell-through revenue recognition in our reporting of non-GAAP net sales.

採用 ASC 606 後，我們從投資者和賣方分析師那裡收到的反饋非常積極，表明我們在非 GAAP 淨銷售額報告中繼續使用銷售收入確認。

We continue to strongly believe that managing our business on a sell-through basis is the appropriate way to run Microchip.

我們仍然堅信，以銷售為基礎管理我們的業務是經營 Microchip 的合適方式。

Therefore, we will have preferred to continue to use our end-market demand as our non-GAAP sales.

因此，我們更願意繼續使用我們的終端市場需求作為我們的非 GAAP 銷售額。

However, after receiving a SEC comment letter and discussing with the SEC, we have decided to provide net sales, sales guidance based on sell-in revenue recognition under the new GAAP standard.

然而，在收到美國證券交易委員會的評論函並與美國證券交易委員會討論後，我們決定根據新的公認會計原則標準提供基於銷售收入確認的淨銷售額和銷售指導。

We will continue to provide non-GAAP guidance for gross margin percentage, operating expense percentage, operating profit percentage and earnings per share, but we will use sell-in days GAAP revenue for these calculations.

我們將繼續為毛利率、營業費用百分比、營業利潤百分比和每股收益提供非 GAAP 指導，但我們將使用銷售天數 GAAP 收入進行這些計算。

When we report our results, we will also provide information on end-market demand so that investors can understand the consumption of our product in the marketplace, but we will not use the end-market demand for calculation of the non-GAAP P&L.

當我們報告我們的結果時，我們還將提供有關終端市場需求的信息，以便投資者了解我們產品在市場上的消費情況，但我們不會使用終端市場需求來計算非 GAAP 損益。

Now I will provide you guidance for the March quarter.

現在我將為您提供三月季度的指導。

The guidance we provided for the September and December quarters, which reflected our caution on business conditions, turned out in retrospect to be spot on and was a harbinger for broader industry weakness.

我們為 9 月和 12 月季度提供的指引反映了我們對商業環境的謹慎態度，回想起來是正確的，並且預示著更廣泛的行業疲軟。

We continue to be cautious about the outlook for the March quarter.

我們繼續對 3 月季度的前景持謹慎態度。

We see a very uncertain business environment with tariffs, slowdown in China, European automotive issues, higher interest rates potentially causing U.S. GDP to slow down, any lingering effect of U.S. government shutdown and potential for further U.S. government shutdown.

我們看到一個非常不確定的商業環境，包括關稅、中國經濟放緩、歐洲汽車問題、可能導緻美國 GDP 放緩的高利率、美國政府關閉的任何揮之不去的影響以及美國政府進一步關閉的可能性。

With all this commentary, we expect our total GAAP net sales based on sell-in revenue recognition for March quarter to be up 2% to down 9% sequentially.

通過所有這些評論，我們預計 3 月季度基於銷售收入確認的 GAAP 淨銷售額將連續增長 2% 至下降 9%。

We expect our non-GAAP gross margin to be between 61.2% and 61.8% of sales.

我們預計我們的非 GAAP 毛利率將在銷售額的 61.2% 至 61.8% 之間。

We expect non-GAAP operating expenses to be between 25.8% and 26.5% of sales.

我們預計非 GAAP 營業費用將佔銷售額的 25.8% 至 26.5% 之間。

We expect non-GAAP operating profit percentage to be between 34.7% and 36% of sales.

我們預計非 GAAP 營業利潤百分比將在銷售額的 34.7% 至 36% 之間。

We expect our non-GAAP earnings per share to be between $1.26 per share to $1.53 per share.

我們預計我們的非 GAAP 每股收益將在每股 1.26 美元至 1.53 美元之間。

Again, all these ranges for non-GAAP gross margin percentage, operating expense percentage, operating profit percentage and earnings per share are based on GAAP revenue and sell-in revenue recognition.

同樣，所有這些非 GAAP 毛利率百分比、營業費用百分比、營業利潤百分比和每股收益的範圍均基於 GAAP 收入和銷售收入確認。

We also want to give the investors and analysts a sense of how we see the Microchip business past the March quarter.

我們還想讓投資者和分析師了解我們如何看待 Microchip 業務在 3 月季度之後的情況。

As you know, there's a substantial pending date of March 1, 2019 when, if there is no settlement between U.S. and China, a 25% tariff would kick in for about $200 billion of Chinese goods shipped into U.S. We think that the 2 governments will make some progress, but it is likely that the data from March 1, 2019, will be extended further out.

如您所知，2019 年 3 月 1 日是一個重要的懸而未決的日期，如果中美之間沒有達成和解，將對運往美國的約 2000 億美元中國商品徵收 25% 的關稅。我們認為兩國政府將取得了一些進展，但 2019 年 3 月 1 日的數據可能會進一步延長。

Barring any material negative development on the trade front, we see the March 2019 quarter to mark the bottom of the cycle for Microchip.

除非貿易方面出現任何實質性的負面發展，否則我們認為 2019 年 3 月的季度將標誌著 Microchip 週期的底部。

We cannot yet say what the shape of the recovery would be, whether the recovery be V-shaped, U-shaped or L-shaped.

我們還不能說復甦的形狀是什麼，復甦是 V 型、U 型還是 L 型。

That will depend somewhat on the outcome of the trade talks.

這在一定程度上取決於貿易談判的結果。

What we do see a bottom forming and believe that the March quarter will mark the bottom for this cycle for Microchip.

我們確實看到底部正在形成，並相信 3 月季度將標誌著 Microchip 本週期的底部。

Given all the complications of accounting for our acquisitions, including amortization of intangibles, restructuring charges and the inventory write-up on acquisitions, Microchip will continue to provide guidance and track its results on non-GAAP basis, except for net sales, which will be on GAAP basis.

考慮到我們收購會計的所有復雜性，包括無形資產攤銷、重組費用和收購庫存增記，Microchip 將繼續提供指導並在非 GAAP 基礎上跟踪其結果，淨銷售額除外，這將是在公認會計原則的基礎上。

We believe that non-GAAP results provide more meaningful comparison to prior quarters and we request that the analysts continue to report the non-GAAP estimates to first call.

我們認為，非 GAAP 業績與前幾個季度相比提供了更有意義的比較，我們要求分析師繼續報告非 GAAP 估計以進行首次電話會議。

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

有了這個，接線員，請你投票提問好嗎？

(Operator Instructions) We'll go now to Craig Hettenbach with Morgan Stanley.

（操作員說明）我們現在將與摩根士丹利一起去 Craig Hettenbach。

I appreciate the color around kind of tariffs and how you're thinking about things kind of post-March.

我很欣賞圍繞關稅的色彩，以及你如何看待 3 月後的事情。

Just any signals that you're looking at in terms of calling the bottom here, whether it's kind of run rate of business, inventory distribution or customers?

無論是業務運行率、庫存分佈還是客戶，您正在尋找的任何信號都可以稱為底部嗎？

Just how you're seeing kind of the business evolve kind of beyond the March quarter?

您如何看待業務在 3 月季度之後的發展？

Well, we look at a variety of factors, including bookings and billings activity, discussion with our direct and distribution customers, distribution sell-through activity, customer cancellations, customer pull-ins, delivery push-outs and pull-ins.

那麼，我們會考慮多種因素，包括預訂和賬單活動、與我們的直接和分銷客戶的討論、分銷銷售活動、客戶取消、客戶拉入、交付推出和拉入。

With 120,000 plus customers that we service in a vast range of end markets and applications, we really believe that we get a very broad perspective of what is happening in our business.

我們在廣泛的終端市場和應用中為 120,000 多名客戶提供服務，我們真的相信我們對業務中發生的事情有非常廣泛的了解。

Today, these indicators are telling us that the environment is still very uncertain driven by a variety of factors, including the trade situation.

今天，這些指標告訴我們，在包括貿易形勢在內的多種因素的推動下，環境仍然非常不確定。

However, we don't see things getting worse at this point unless something more negative occurs on the trade front.

然而，我們認為目前情況不會變得更糟，除非貿易方面出現更不利的情況。

Based on the vast amount of data that we get, we're releasing a framework for the formation of a bottom for this cycle in the March quarter.

根據我們獲得的大量數據，我們發布了一個框架，用於在 3 月季度形成該週期的底部。

Got it.

知道了。

And then just as a follow-up, can you talk about, so far this quarter-to-date, kind of January to February, what type of linearity you're seeing and how the business has been?

然後作為後續行動，你能談談，到目前為止，這個季度至今，大約在 1 月到 2 月，你看到了什麼類型的線性以及業務如何？

So business is tracking well to the guidance we are providing.

因此，業務正在很好地跟踪我們提供的指導。

We have seen the bookings stabilize and even increase somewhat very recently, but I would say it's a very short duration indicator and it's really not enough for -- a long enough time to be really making calls based on that.

我們已經看到預訂量穩定下來，甚至最近有所增加，但我會說這是一個非常短的持續時間指標，而且它真的不夠 - 足夠長的時間才能真正根據此撥打電話。

We'll go next to Mark Delaney with Goldman Sachs.

我們將與高盛的馬克德萊尼一起去。

Steve, I was hoping, first, if you could give us a better sense, as you think about the March quarter, if you think sell-through will be above or below or similar to the sell-in revenue that you're giving guidance for?

史蒂夫，我希望，首先，如果你能給我們一個更好的感覺，當你考慮三月季度時，如果你認為銷售量將高於或低於或類似於你給出的銷售收入指導為了？

Yes.

是的。

So we are -- we do not really have a good process for forecasting what the change in distribution inventory is going to be.

所以我們 - 我們真的沒有一個好的流程來預測分銷庫存的變化。

That's not how we used to run our business historically, you know that, and that's why we've given the sell-through information or end-market demand consumption historically.

這不是我們過去經營業務的方式，你知道的，這就是為什麼我們在歷史上提供了銷售信息或終端市場需求消費。

We really feel, as we said kind of in our prepared remarks, that distribution inventory is in a good position to support what end-market consumption is.

我們真的覺得，正如我們在準備好的評論中所說的那樣，分銷庫存能夠很好地支持終端市場消費。

So I think at this point in time, we've given a pretty broad range of guidance for the quarter of plus 2 to down 9, so that's probably the broadest range of guidance you've seen from Microchip in a long time and some of that is the unpredictability of what the sell-in versus sell-through is going to be.

所以我認為在這個時間點，我們已經為季度加 2 到下降 9 提供了相當廣泛的指導，所以這可能是您長期以來從 Microchip 看到的最廣泛的指導和一些這就是賣出與賣出的不可預測性。

That's helpful.

這很有幫助。

And then my follow-up question on the completed quarter, revenue and gross margins were above your guidance.

然後我關於已完成季度的後續問題，收入和毛利率高於您的指導。

Can you just give us a better sense for what enabled the company to exceed its guidance on those financial metrics?

您能否讓我們更好地了解是什麼使公司能夠超越其對這些財務指標的指導？

Well, do you want to take that, Eric?

嗯，你想接受嗎，埃里克？

Sure.

當然。

So I mean, revenue was roughly 1% -- a little more than 1% better than our guidance was.

所以我的意思是，收入大約是 1%——比我們的指導高出 1% 多一點。

And I think that's just kind of the puts and takes that we saw in the quarter, but it was good that we came in above the midpoint.

我認為這只是我們在本季度看到的一些推桿和推桿，但我們超過中點是件好事。

And then on the gross margin side, we had a very favorable product mix in the quarter.

然後在毛利率方面，本季度我們的產品組合非常有利。

We continue to really focus on cost reductions of our manufacturing areas.

我們繼續真正專注於降低製造領域的成本。

You know that we made quite a bit of changes in terms of any discounts that were previously given for the Microsemi portion of the business, on sales to distributors or contract manufacturers, and we're really seeing the benefit reflect itself in the gross margin today.

您知道，我們在以前為 Microsemi 業務部分提供的任何折扣、向分銷商或合同製造商的銷售方面做出了相當大的改變，我們確實看到這些好處反映在今天的毛利率中.

We'll now take a question from Ambrish Srivastava from Bank of Montreal.

我們現在將接受來自蒙特利爾銀行的 Ambrish Srivastava 的提問。

Maybe just take stick to the gross margin side.

也許只是堅持毛利率方面。

Your guidance is, on a Q-over-Q, that's a pretty big delta, but yet your margins are coming in a much stronger than what I would have modeled it.

你的指導是，在 Q-over-Q 上，這是一個相當大的增量，但你的利潤率比我模擬的要強得多。

Could you just help us understand the dynamics there in the guided 2 quarters, especially in light of your inventory came down as well?

您能否幫助我們了解指導的兩個季度的動態，特別是考慮到您的庫存也下降了？

And I'm expecting you're not building inventory in the quarter.

而且我預計您不會在本季度建立庫存。

And then I have a quick follow-up.

然後我有一個快速跟進。

Is your question that the gross margins are coming down, but the operating margins are not as much?

你的問題是毛利率在下降，但營業利潤率沒有那麼多嗎？

No.

不。

My question is gross margin are -- gross margin is coming in stronger than what I would have modeled given your shortfall in the revenues versus what the street was expecting.

我的問題是毛利率是——考慮到你的收入與街道的預期相比，毛利率比我模擬的要強。

Well, I think the same reason why the gross margins were strong this quarter.

好吧，我認為本季度毛利率強勁的原因相同。

We are getting an uplift from a lot of the discounts that were given to the distribution channel and contract manufacturers and others.

我們從給予分銷渠道和合同製造商和其他人的大量折扣中得到提振。

And a lot of the business of that was moved to distribution from the Microsemi business, we have completed that conversion back to direct and, therefore, you take out the distribution margin hit.

很多業務從 Microsemi 業務轉移到分銷，我們已經完成了轉換回直接業務，因此，您可以消除分銷利潤率的影響。

So all that is having a positive effect on ASPs and our margins.

因此，所有這些都對 ASP 和我們的利潤率產生了積極影響。

We are continuing to reduce cost in all of our factories.

我們正在繼續降低我們所有工廠的成本。

There is still a lot of Atmel products, which was outside.

外面還有很多Atmel的產品。

Every quarter, more and more of it is coming in.

每個季度，越來越多的人湧入。

There is also some Microsemi product we're starting to bring in.

我們也開始引入一些 Microsemi 產品。

Some of the expenses have been taken out from the manufacturing overhead in synergies.

部分費用已從協同效應中的製造費用中扣除。

So we have a lot of moving parts and the product mix is very healthy.

所以我們有很多活動部件，產品組合非常健康。

Okay.

好的。

Good.

好的。

And then my quick follow-up, Steve, usually things don't turn around that quickly.

然後是我的快速跟進，史蒂夫，通常事情不會那麼快好轉。

And it's a small piece of your business.

這只是您業務的一小部分。

FPGA, if my memory serves me correct, it was kind of in the $320 million, $325 million run rate annual, and you posted $100 million quarter.

FPGA，如果我沒記錯的話，它的年運行率為 3.2 億美元，3.25 億美元，而你公佈的季度為 1 億美元。

What's going on?

這是怎麼回事？

Is there, hopefully not a last time buy, but some design wins that are ramping?

有沒有，希望不是最後一次購買，而是一些設計勝利正在增加？

Yes.

是的。

There are no last time buys in FPGA that are driving that revenue.

沒有最後一次購買 FPGA 來推動該收入。

There has been feed zone for many quarters on some of the new products, the fourth and fifth generation of the FPGA products.

一些新產品，第四代和第五代FPGA產品已經有很多季度的反饋區。

There's some of the FPGA, which is exposed to markets like defense and aerospace, they have some quarter-ending budget that needs to be spent.

有一些 FPGA 面向國防和航空航天等市場，他們有一些季度末預算需要花費。

But it's a stable, solid business and we see many, many good characteristics for how that can be continued to be built on.

但這是一項穩定、穩固的業務，我們看到瞭如何繼續建立它的許多很多好的特徵。

Quarter-to-quarter, we may have small changes, but our overall, if you look at annualized revenue, it's on a nice good growth path for us.

每個季度，我們可能會有一些小的變化，但我們的整體，如果你看年化收入，它對我們來說是一個很好的增長路徑。

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

我們將接受來自美國銀行的 Vivek Arya 的下一個問題。

So Steve, can you give us some color by end market, whether it's industrial or autos or consumer or communications, where you are perhaps seeing better or worse trends than what the midpoint of your March outlook would suggest?

那麼史蒂夫，你能給我們一些終端市場的顏色嗎，無論是工業、汽車、消費還是通信，你可能會看到比你 3 月份展望的中點所暗示的更好或更壞的趨勢？

Ganesh?

像頭神？

Yes.

是的。

Rather than going segment-by-segment, I think we have previously indicated that the automotive, industrial and consumer home appliance markets were weaker in the last quarter.

我認為我們之前已經指出，汽車、工業和消費家電市場在上個季度表現疲軟，而不是逐個細分市場。

Especially as we look at this in the guidance for this quarter, we're seeing the addition to that, the data center market, the communication markets have also started to have some softening that goes with it.

特別是當我們在本季度的指導中看到這一點時，我們看到除此之外，數據中心市場，通信市場也開始出現一些疲軟。

So at this point in time, I can't pick any one of them to say this is the main reason why the strength is coming or the weakness is coming.

所以在這個時間點上，我不能挑出其中任何一個來說這是強勢來臨或弱勢來臨的主要原因。

I think we're seeing a broad-based weakness and even some which were stronger last quarter are less strong at this point in time.

我認為我們看到了廣泛的疲軟，甚至上個季度表現強勁的一些在這個時間點也不那麼強勁了。

Defense and aerospace has continued to be strong.

國防和航空航天業繼續保持強勁勢頭。

It could have some impact this quarter from the government shutdown and what impacts that may have, but that's all built into our guidance at this point.

它可能會在本季度因政府關閉而產生一些影響以及可能產生的影響，但這一切都已納入我們目前的指導方針。

I think aerospace and defense is a market in its own.

我認為航空航天和國防本身就是一個市場。

It's in its own space and it doesn't really follow the usual -- what happens in industrial, consumer and other.

它在自己的空間裡，並沒有真正遵循通常的做法——工業、消費者和其他領域發生的事情。

It's a very different business.

這是一個非常不同的業務。

We did see some impact from the government shutdown where we couldn't get certain export licenses processed and some programs were not released, but we kind of expect it to square up in the quarter and not really have any significant impact going out of the quarter.

我們確實看到了政府關閉的一些影響，我們無法獲得某些出口許可證並且一些程序沒有發布，但我們預計它會在本季度恢復正常並且不會對本季度產生任何重大影響.

There is some impact of a budget flush and there's a lot of budget flush in September and December quarters where all these large customers, they have government budgets and they need to spend it.

預算沖洗有一些影響，在 9 月和 12 月的季度有很多預算沖洗，所有這些大客戶都有政府預算，他們需要花錢。

Otherwise, they use it or lose it.

否則，他們要么使用它，要么失去它。

And so March quarter is sequentially down in that segment because of the budget flush.

因此，由於預算充裕，三月季度在該部分連續下降。

Got it.

知道了。

And for my follow-up, Steve, if we, let's say, do have a trade resolution in the next few weeks, do you think there is a potential for an inventory refill?

對於我的後續行動，史蒂夫，如果我們在接下來的幾週內確實有貿易解決方案，您認為有可能補充庫存嗎？

Or do you think the industry is shipping to consumption right now, so we should not be modeling any better than seasonal quarters going forward?

或者您是否認為該行業現在正在向消費者發貨，所以我們不應該比未來的季節性季度更好地建模？

I don't know about how everybody else is doing, so I will just speak for Microchip rather than the industry.

我不知道其他人的情況如何，所以我只代表 Microchip 而不是整個行業。

A settlement of trade would be a bonanza.

貿易結算將是一筆財富。

Our customers and distributors are so cautious.

我們的客戶和分銷商非常謹慎。

There is low visibility.

能見度低。

They're building bare bones what they need for the backlog from their customers.

他們正在為客戶積壓的訂單構建所需的基本信息。

Nobody wants to get stuck with anything depending on what happens.

沒有人願意根據發生的情況陷入困境。

If the trade talks are settled prior to March 1, this would be a big bonanza.

如果貿易談判在 3 月 1 日之前解決，這將是一筆巨大的財富。

Yes.

是的。

Vivek, just to add to that, as you can tell from our last 2 quarters of actual results where our end-market demand was higher than what the sell-in revenue was, there's definitely a bleed-down of the distribution inventory and we don't think that the end customer is probably any different, although we don't get real data points on that.

Vivek，補充一下，正如您從我們最後兩個季度的實際結果中可以看出的那樣，我們的終端市場需求高於銷售收入，分銷庫存肯定會減少，我們不會不要認為最終客戶可能有任何不同，儘管我們沒有得到這方面的真實數據點。

Yes.

是的。

So we are not shipping to consumption as you said.

所以我們不會像你說的那樣運送到消費。

We're shipping well below consumption.

我們的出貨量遠低於消費量。

We'll take our next question from John Pitzer with Credit Suisse.

我們將接受瑞士信貸約翰皮策的下一個問題。

I guess, Eric, you said in your prepared comments, you made the comment that the guide for the March quarter on the revenue is wider than normal.

我猜，埃里克，你在準備好的評論中說過，你發表評論說 3 月份季度的收入指南比正常情況更廣泛。

Can you help me understand, to what extent is that just a reflection of how uncertain this environment is and to what extent is that just a reflection of having now to guide just sort of a sell-in revenue?

你能幫我理解一下，這在多大程度上反映了這種環境的不確定性，在多大程度上反映了現在只能指導某種銷售收入？

And as we think about future quarters, is this now the right range of guidance around the midpoint you're going to give us or is this just wider because of uncertainty?

當我們考慮未來的幾個季度時，現在這是您要給我們的中點附近的正確指導範圍，還是因為不確定性而變得更寬？

I believe it is the combination of both, right?

我相信這是兩者的結合，對吧？

I mean, we haven't given guidance historically based on sell-ins.

我的意思是，我們歷史上沒有根據銷售量給出指導。

So this is new to Microchip and we don't feel that we have a good way to understand if distribution inventory is going to increase or decrease in a period.

所以這對 Microchip 來說是新事物，我們認為我們沒有很好的方法來了解分銷庫存在一段時間內是會增加還是減少。

So that is a factor, but obviously the environment is very uncertain.

所以這是一個因素，但顯然環境非常不確定。

So I can't parse it out in terms of what percentage is each, but I -- this is just a pretty broad range of guidance...I can't really speak to (inaudible)

所以我無法根據每個百分比來解析它，但我 - 這只是一個相當廣泛的指導......我真的不能說（聽不清）

Yes.

是的。

So I think -- I would just say, maybe sticking my neck out a little bit, that over time, I think we will learn to have the guidance narrower.

所以我想 - 我只想說，也許我的脖子有點伸出來，隨著時間的推移，我認為我們將學會縮小指導範圍。

We have a very broad distribution.

我們的分佈非常廣泛。

We do business with over 100 distributors around the world, which is not the case with many other semiconductor players that do business with largely 3 or 4 large distributors.

我們與全球 100 多家分銷商開展業務，而許多其他主要與 3 或 4 家大型分銷商開展業務的半導體公司並非如此。

We, as you know in the past, we have large distributors, which we call global distributors, we have catalog houses and we have nearly 80 to 100 distributors in China alone.

正如你所知，我們過去有大型分銷商，我們稱之為全球分銷商，我們有目錄公司，僅在中國就有近 80 到 100 家分銷商。

So our distribution network is very, very broad.

所以我們的分銷網絡非常非常廣泛。

And to really figure out what everybody is going to buy, those are not the processes that we worked on in the past.

為了真正弄清楚每個人都會買什麼，這些不是我們過去工作的流程。

We don't really care what distributor buys.

我們真的不在乎分銷商購買什麼。

We care about what distributor sells out and our processes take care of that.

我們關心分銷商售罄的產品，我們的流程會處理好這一點。

So we will get better at it very rapidly.

所以我們會很快變得更好。

We're not saying years.

我們不是說年。

We're saying quarters.

我們說的是宿舍。

We'll get better at it and guidance will narrow.

我們會做得更好，指導範圍會縮小。

And the other impact is the uncertain environment.

另一個影響是不確定的環境。

Once the environment gets more certain, I think we'll narrow it also.

一旦環境變得更加確定，我想我們也會縮小範圍。

Yes, and I think another contributing factor is the lead times are very, very short today, right?

是的，我認為另一個促成因素是今天的交貨時間非常非常短，對吧？

So backlog visibility is not great.

所以積壓工作的可見性不是很好。

That's helpful.

這很有幫助。

Then maybe for my follow-up, guys.

然後也許是我的後續行動，伙計們。

I just wanted to go back to the gross margin, a couple of other questions were asked around that.

我只想回到毛利率，圍繞這個問題問了幾個其他問題。

I'm just kind of curious, given that, Steve, you mentioned you're undershipping demand today.

我只是有點好奇，考慮到這一點，史蒂夫，你提到你今天的需求不足。

In conjunction with sort of the slowdown at the industry level, you were also working through some excesses that the Microsemi business had when you bought it.

結合行業層面的某種放緩，你也在努力解決你購買 Microsemi 業務時的一些過度行為。

I'm just kind of curious, how should we be thinking about utilization now?

我只是有點好奇，我們現在應該如何考慮利用率？

Have you done all the utilization adjustments you needed to?

您是否已完成所有需要的利用率調整？

And I guess, more importantly, as business comes back and you benefit from increasing utilization and some of the more in-sourcing activities you're doing, how do we think about kind of that long-term target gross margin?

而且我想，更重要的是，隨著業務恢復並且您受益於利用率的提高以及您正在進行的一些更多的內包活動，我們如何看待這種長期目標毛利率？

Because relative to that 63% you've talked about, you're not too far away in what's a really rather lackluster business environment.

因為相對於你所說的 63%，你離真正相當乏味的商業環境並不遙遠。

Is 63% the right margin to think about or could it be higher?

63% 是考慮的正確利潤率還是可以更高？

Good question, as always.

好問題，一如既往。

Just to keep that question on the back of your mind, and I think as we get further, as we establish 63%, then we will assess further.

只是為了讓你記住這個問題，我認為隨著我們進一步深入，當我們確定 63% 時，我們將進一步評估。

Right now, especially Microsemi factories are significantly underloaded because we first corrected the distribution inventory, and then the internal inventories were much higher, the internal inventories from Microsemi that we inherited are a lot higher than really the level of inventory at Microchip.

現在，尤其是 Microsemi 工廠的負荷嚴重不足，因為我們首先糾正了分銷庫存，然後內部庫存高得多，我們從 Microsemi 繼承的內部庫存比 Microchip 的實際庫存水平高很多。

So we have a number of factories running at 50% capacity, a number of them are running something higher than that.

因此，我們有許多工廠以 50% 的產能運行，其中一些工廠的產能更高。

So overall utilization is very low.

所以整體利用率很低。

But, I made this point last quarter, I think only about 10% to 20% of -- 15% of Microsemi business is done in the internal factories, that comes from the foundries.

但是，我在上個季度提出了這一點，我認為只有大約 10% 到 20% 的 - 15% 的 Microsemi 業務是在來自代工廠的內部工廠中完成的。

So from foundries, we have aggressively cut the starts in assembly and test loading to really bring that down rapidly at subcontractors.

因此，從代工廠開始，我們積極削減了組裝和測試裝載的啟動時間，以真正迅速降低分包商的生產量。

Internal, we have cut it in the factories are running below capacity.

在內部，我們在工廠產能不足時削減了它。

And when the business comes back, we get some improvement from utilization from the internal factories but there were only 15% of Microsemi business, they're only probably 5% of our business, total, Microchip.

當業務恢復時，我們從內部工廠的利用率中得到了一些改善，但只有 15% 的 Microsemi 業務，它們可能只占我們業務的 5%，總共，Microchip。

So just be careful.

所以要小心。

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

我們將與 Piper Jaffray 一起接受來自 Harsh Kumar 的下一個問題。

One for Steve and one for Eric.

一份給史蒂夫，一份給埃里克。

Steve, I wanted to ask about your comment about marking the bottom in March, a couple of other broad companies have said the same thing.

史蒂夫，我想問一下你對三月份觸底的評論，其他幾家大公司也說過同樣的話。

But they are usually talking about either some sort of stabilization in the backlog or some kind of metric that they are watching and monitoring.

但他們通常談論的是積壓工作中的某種穩定或他們正在觀察和監控的某種指標。

I'm also -- when you make that statement, I'm also hearing sort of, Ganesh, in response to a question said, things are still getting worse in some of the markets.

我也是——當你發表這樣的聲明時，我也聽到了，Ganesh，在回答一個問題時說，一些市場的情況仍在惡化。

So I'm curious if you have any kind of tangible data in terms of either backlog or orders or something else you could point to.

所以我很好奇你是否有任何關於積壓或訂單或其他你可以指出的有形數據。

And do you think the China industry is sort of flushed at this point in time and that's we're basically shipping to true demand or maybe undershipping and that's the reason why you feel better about it?

你認為中國行業在這個時間點有點氾濫嗎？我們基本上是在滿足真正的需求，或者可能是出貨不足，這就是你感覺更好的原因？

And then I've got a follow-up for Eric.

然後我有埃里克的後續行動。

Well, I would say some of the data center and other business you're talking about, they're also down somewhat seasonally and they're weaker seasonally because March quarter is weaker compared to September and December quarters in which year-end shipments happen.

好吧，我想說的是您正在談論的一些數據中心和其他業務，它們也有一定的季節性下降，而且季節性較弱，因為與年末出貨的 9 月和 12 月季度相比，3 月季度較弱.

But I think the question you're really asking is, what gives us the confidence that the March quarter will mark the bottom, is that the question?

但我認為你真正要問的問題是，是什麼讓我們相信 3 月季度將觸底，是這個問題嗎？

Yes, yes.

是的是的。

Okay.

好的。

So I think I would say we really can't present you enough data to convince you and we're not going to try.

所以我想我會說我們真的無法向您提供足夠的數據來說服您，我們不會嘗試。

What we can tell you is that our current backlog for June quarter is about flat with the backlog we had for the March quarter on November 5, okay?

我們可以告訴您的是，我們目前 6 月季度的積壓訂單與 11 月 5 日 3 月季度的積壓訂單基本持平，好嗎？

So that may look flat.

所以這可能看起來很平淡。

But then you have to look at after November 5, we had a bunch of holidays, Thanksgiving, Christmas and then Chinese New Year in the March quarter.

但是你必須看看 11 月 5 日之後，我們在 3 月這個季度度過了一系列假期、感恩節、聖誕節，然後是農曆新年。

There are no major holidays for June quarter.

六月季度沒有重大假期。

So starting with the flat backlog and going into the stronger quarters without the holidays, that's why we say barring any significantly negative developments on the trade negotiations with China, we believe that June quarter will strengthen or we're confident that it should not be sequentially down again.

因此，從持平的積壓開始，進入沒有假期的強勁季度，這就是為什麼我們說，除非與中國的貿易談判出現任何重大的負面發展，否則我們相信 6 月季度將走強，或者我們有信心它不應該連續再次下降。

But the second point I would say, Harsh, is, and I don't mean this for all the analysts and for all the investors, there are lots of them that have followed us for a long time and believe the calls we make, but there are a lot of the others who don't.

但我要說的第二點，嚴厲的是，我並不是說所有的分析師和所有的投資者，他們中有很多人長期關注我們並相信我們做出的決定，但是還有很多其他人沒有。

We have made numerous calls in the last 15 years or so for the business environment to turn negative and then turn positive.

在過去 15 年左右的時間裡，我們多次呼籲商業環境從負面轉為正面。

When we first make a negative call, first it is not believed, it's even ridiculed a few times.

當我們第一次打出負面電話時，首先是不相信，甚至被嘲笑幾次。

Then 3 to 4 months later, what we say gets confirmed and everybody goes down.

然後 3 到 4 個月後，我們所說的得到證實，每個人都失望了。

Then comes the recovery part of the call, it is not believed either.

然後是呼叫的恢復部分，也不相信。

As we go on the road over and over and over we get the question, what gives you the confidence, and we answer it.

當我們一遍又一遍地走在路上時，我們得到了這個問題，是什麼給了你信心，我們會回答這個問題。

That is not believed either.

那也不相信。

So to my recollection, we have not been wrong in 15-plus years in calling the downturn, and we have not been wrong in the same time frame calling the upturn.

因此，根據我的回憶，我們在 15 年多的時間裡預測經濟衰退並沒有錯，我們在預測經濟好轉的同一時間框架內也沒有錯。

That's what gives us the confidence.

這就是給我們信心的原因。

Like you saying your business, past performance is no guarantee of the future results.

就像您所說的那樣，過去的表現並不能保證未來的結果。

So we don't guarantee anything.

所以我們不保證任何事情。

So of course, our confidence is subject to some number of risks, but I think that's the narrative I'd like to explain.

因此，當然，我們的信心會受到一些風險的影響，但我認為這就是我想解釋的敘述。

No, that's very helpful actually.

不，這實際上非常有幫助。

And then question for Eric was, how much free cash flow do you expect by your calculation to be available for debt payment in March?

然後 Eric 的問題是，根據您的計算，您預計 3 月份有多少自由現金流可用於償還債務？

And if that's the base level number and we expect business to get kind of better so we can get an idea of what you're kind of going to be able to do hopefully going forward if nothing macro changes?

如果這是基本水平的數字，我們希望業務會變得更好，那麼如果宏觀沒有任何變化，我們可以了解您希望能夠做些什麼？

Sure.

當然。

We expect somewhere between a $175 million and $200 million of debt pay down in the current quarter.

我們預計本季度將減少 1.75 億美元至 2 億美元的債務償還。

The last 2 quarters were significantly higher than that.

最後兩個季度明顯高於此水平。

I would say that we obviously are coming off where accounts receivable is down quarter-over-quarter.

我想說的是，我們顯然正在擺脫應收賬款環比下降的局面。

We had some very good help from some of our customers and some of our vendors in terms of payment terms and negotiating that, and really making significant progress compared to what our guidance was in the December quarter, but we don't really have those levers to pull in the current quarter.

在付款條件和談判方面，我們的一些客戶和一些供應商提供了一些非常好的幫助，並且與我們在 12 月季度的指導相比確實取得了重大進展，但我們確實沒有這些槓桿拉動當前季度。

So I don't think I'd use that $175 million to $200 million as kind of an ongoing run rate.

所以我認為我不會將這 1.75 億美元到 2 億美元用作持續運行率。

We do expect that it will get significantly better from this point forward, but we'll continue focus really all of our excess cash generation outside of the dividend on paying down debt.

我們確實預計從現在開始情況會明顯好轉，但我們將繼續將除股息之外的所有多餘現金產生都集中在償還債務上。

We'll go to William Stein with SunTrust for our next question.

下一個問題我們將與 SunTrust 一起去找 William Stein。

Steve, I'd like to maybe take a different approach to the sort of cycle and recovery question.

史蒂夫，我想對周期和恢復問題採取不同的方法。

Acknowledging that you've tended to call these turns early and correct, I just want to understand what's giving you the confidence -- from the perspective of trade, we have this March 1 deadline hanging over us, and it sounds like you're providing us with some, not guidance, but some sense of demand post-March quarter that implies this gets resolved constructively.

承認你傾向於提前和正確地調用這些轉變，我只是想了解是什麼給了你信心——從貿易的角度來看，我們有 3 月 1 日的最後期限懸而未決，聽起來你正在提供我們有一些，不是指導，而是一些 3 月後季度的需求感，這意味著這個問題得到了建設性的解決。

And I'm just wondering why you feel confident to do that?

我只是想知道為什麼你有信心這樣做？

And then I have a follow-up, please.

然後我有一個後續行動，請。

I don't know if that's what I'm saying.

我不知道我說的是不是這樣。

Actually, I'm saying very clearly that barring any significant negative developments from the trade front, that was the caveat in what I said.

實際上，我說得很清楚，除非貿易方面出現任何重大的負面發展，這就是我所說的警告。

And what I also said was that I think with a month to go to March 1, I think the governments are making progress, there are positive signals coming out of the White House.

我還說過，我認為距離 3 月 1 日還有一個月，我認為政府正在取得進展，白宮發出了積極的信號。

You recall how negatively signals were coming out regarding Canada during one of the conferences, I think.

我想，您還記得在其中一次會議期間對加拿大發出的負面信號。

And then all of a sudden, a week later it all came out good.

然後突然間，一周後一切都好起來了。

So it's -- Trump had used that strategy in a way and then not those negative signals coming about China.

所以它 - 特朗普以某種方式使用了該策略，然後沒有使用那些來自中國的負面信號。

So I think the progress must be good, but it's a lot of work to get done.

所以我認為進展一定是好的，但是要完成很多工作。

And I'm simply saying, it's most likely that there's some positive announcement but the actual settlement gets pushed out further.

我只是想說，很可能會有一些積極的公告，但實際的和解協議會被進一步推遲。

The settlement gets pushed out further, the environment we're seeing remains.

定居點被進一步推開，我們看到的環境仍然存在。

Our guidance assumes a fairly current environment continuing.

我們的指南假設當前環境持續存在。

And if that current environment continues, then June quarter is still better than March quarter.

如果目前的環境繼續下去，那麼 6 月季度仍好於 3 月季度。

Okay.

好的。

One other question on the Microsemi integration.

關於 Microsemi 集成的另一個問題。

I know that -- I recall they acquired Vectron, a lower-margin business right before you acquired the whole company, and that was a -- they had never reported a quarter with that asset.

我知道——我記得他們收購了 Vectron，這是一家利潤率較低的企業，就在你收購整個公司之前，那是——他們從未報告過該資產的季度。

And there were some other things in their portfolio that might not have met Microchip's, I don't know, view of a great business to be in.

他們的投資組合中還有一些其他東西可能不符合 Microchip 的，我不知道，對一個偉大的企業的看法。

I'm wondering if you've made any portfolio adjustments, if you've closed any of their businesses so that we can think about maybe a different margin profile or growth profile when demand normalizes and all the inventory adjustments are made?

我想知道您是否進行了任何投資組合調整，是否關閉了他們的任何業務，以便我們可以考慮在需求正常化並進行所有庫存調整時可能出現不同的利潤率或增長狀況？

We have not.

我們還沒有。

We have not sold any of the businesses, we have not closed any other of the Vectron factories.

我們沒有出售任何業務，也沒有關閉任何其他 Vectron 工廠。

We're running the business.

我們正在經營業務。

You are correct that the business is at a lower gross margin.

您是正確的，該業務的毛利率較低。

We're using our usual techniques.

我們正在使用我們常用的技術。

We are trying to improve the gross margins through ASP management, they also -- Microsemi had to cut some expenses, and we have cut some.

我們正試圖通過 ASP 管理提高毛利率，他們也 - Microsemi 不得不削減一些開支，我們也削減了一些。

So the contribution to EBITDA is actually much higher than really what it was originally.

所以對 EBITDA 的貢獻實際上比原來的要高得多。

But the gross margin, if you only focus on that, then the gross margins are lower.

但是毛利率，如果你只關注那個，那麼毛利率會更低。

We have other businesses at Microchip where the gross margins are lower than our corporate margin.

我們在 Microchip 有其他業務，其毛利率低於我們的公司利潤率。

We have also many businesses that are higher, in the 70s and 80s.

我們也有很多更高的業務，在 70 年代和 80 年代。

So at the end of the day, it's a mix.

所以歸根結底，這是一個混合。

If your question goes beyond Vectron.

如果您的問題超出了 Vectron。

In the last 2 conference calls, we've also mentioned as part of our integration effort, we have reviewed every single business.

在最近的 2 次電話會議中，我們還提到，作為整合工作的一部分，我們審查了每一項業務。

And while there are many, many excellent businesses, there were some that needed improvement.

雖然有很多很多優秀的企業，但也有一些需要改進。

And we have made adjustments in terms of level of investment we're making in those businesses to be better overall result for us as well.

我們已經對我們對這些業務的投資水平進行了調整，以便為我們帶來更好的整體結果。

So -- but that's all largely behind us.

所以——但這在很大程度上已經過去了。

At this point, as Steve mentioned, on Vectron and all the other businesses, we're working on improving what we inherited and making significant progress towards that.

在這一點上，正如史蒂夫提到的，在 Vectron 和所有其他業務上，我們正在努力改進我們繼承的東西，並朝著這個方向取得重大進展。

And when the factories come back to full production, as we take out these excess inventories, Vectron business will see substantial cost reduction through higher utilization in that factories, their numbers are going to start looking much better.

當工廠恢復全面生產時，當我們去除這些過剩庫存時，Vectron 業務將通過提高工廠的利用率來大幅降低成本，他們的數量將開始看起來好得多。

We'll now take a question from Chris Caso with Raymond James.

我們現在將與雷蒙德·詹姆斯一起接受克里斯·卡索的提問。

Just wanted to ask a question about revenue geographically.

只是想問一個關於地理收入的問題。

And I guess that we probably anticipate some of the weakness that you've seen in Asia that you talked about before.

而且我想我們可能會預見到您之前談到的亞洲的一些弱點。

It look liked from the results that you saw a downtick in Europe also.

從結果來看，您在歐洲也看到了下滑，這看起來很不錯。

Can you talk about that?

你能談談嗎？

And if there's anything specific geographically you're anticipating as you go into the March quarter?

如果您在進入 3 月季度時有什麼具體的地理位置預期？

I can take that.

我可以接受。

So I mean, the in all geographies, we're down.

所以我的意思是，在所有地區，我們都失敗了。

We posted this on our website.

我們將其發佈在我們的網站上。

So it's available for everybody to see and will be in our 10-Q filing.

因此，每個人都可以看到它，並將出現在我們的 10-Q 文件中。

But all geographies were down.

但是所有地區都下跌了。

It is not unusual at all for the Americas and Europe to be down in the December quarter just because of all the holidays.

美洲和歐洲在 12 月季度因為所有假期而出現下滑並不罕見。

And typically, we see strength from Asia in that time period prior to leading in the Chinese New Year in the current quarter.

通常，我們會在本季度農曆新年領先之前的那個時期看到亞洲的實力。

But I think all geographies were weak.

但我認為所有地區都很薄弱。

This weakness was not just the China issue, it's just kind of spread across the globe.

這種弱點不僅僅是中國問題，它只是在全球範圍內蔓延。

And in terms of forecast for the next quarter or the current quarter that we're in, we don't really break out the forecast by product line or geography.

就下一季度或當前季度的預測而言，我們並沒有真正按產品線或地理位置細分預測。

But I think directionally, March quarter, usually, our European business is strong, our China business is weak because of Chinese New Year, even in a normal time, we're also dealing with trade here, and the U.S. business is kind of normal.

但我認為方向性的，三月季度，通常，我們的歐洲業務強勁，我們的中國業務因農曆新年而疲軟，即使在正常時間，我們也在處理這裡的貿易，美國業務有點正常.

So I think directionally, it can have that.

所以我認為方向性的，它可以做到這一點。

Okay.

好的。

And just as a follow-up, the follow-up question's on revenue linearity through the quarter and kind of expectations for March as well.

作為後續行動，後續問題是關於整個季度的收入線性度以及對 3 月份的預期。

And you mentioned last quarter that you saw a slight uptick, I guess, in the first month of the quarter.

你在上個季度提到，我猜你在本季度的第一個月看到了小幅上升。

I presume that downtick towards the end of the quarter.

我認為在本季度末會下降。

And then how do typically see linearity as you go through the March quarter again taking in consideration the Chinese New Year holiday in the middle?

然後考慮到中間的農曆新年假期，當你再次經曆三月季度時，通常如何看待線性？

Well, so I think the uptick we talked about in bookings in November call basically did not hold.

好吧，所以我認為我們在 11 月的電話會議中談到的預訂量上升基本上沒有成立。

I think you've heard from everybody that December was fairly weak.

我想你已經從每個人那裡聽說 12 月相當疲軟。

That's always the problem in making decisions based on very short-term data.

這始終是根據非常短期的數據做出決策的問題。

And I said that earlier that our bookings have normalized very -- lately, we have even seen some strength.

我之前說過，我們的預訂已經正常化了——最近，我們甚至看到了一些實力。

But don't take it to the bank yet, I'm not taking it to the bank.

但是先別去銀行，我不會去銀行的。

We have made the call today, at the midpoint down about 3.5% sequentially from GAAP-to-GAAP revenue.

我們今天打了電話，從 GAAP 到 GAAP 收入的中點下降了約 3.5%。

This does not include any dramatic improvement of bookings or improvement of trade or anything like that.

這不包括預訂量的任何顯著改善或貿易的改善或類似的事情。

I think it just assumes that the market stays in the doldrums.

我認為它只是假設市場處於低迷狀態。

Our next question comes from Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

In terms of executing on the March quarter guide and maybe providing the team with a bit more confidence on the June quarter kind of qualitative outlook, historically, how much hinges upon the replenishment rates post-Chinese New Year?

在執行 3 月季度指南方面，也許讓團隊對 6 月季度的定性前景更有信心，從歷史上看，多少取決於春節後的補貨率？

And when do typically get these signals?

通常什麼時候收到這些信號？

Is it 2 weeks, 3 weeks after Chinese New Year?

是春節後2週、3週嗎？

So March quarter sometimes lands up very much depending on where that Chinese New Year falls based on the lunar calendar.

因此，三月季度有時會在很大程度上取決於農曆新年的落腳點。

Earlier the Chinese New Year, the better the March quarter usually lands up being because Chinese customers can go slow before that and they come back and then they see all charged up and ramp up their factories.

中國農曆新年越早，三月季度的情況通常越好，因為中國客戶在此之前可能會放慢速度，然後他們回來，然後他們會看到所有設備都在充電並擴大他們的工廠。

So Chinese New Year is happening this week, which we will consider kind of early because it can be late February, it can even be fairly late.

所以這週就要過春節了，我們認為這有點早，因為可能是二月下旬，甚至可能已經很晚了。

But it has been even earlier sometime in late January.

但它在 1 月下旬的某個時候甚至更早。

But this is really early to mid.

但這確實是早期到中期。

So this is good sign, and we will see what happens after Chinese New Year.

所以這是個好兆頭，我們將看看農曆新年後會發生什麼。

Okay.

好的。

No, I appreciate the insights there.

不，我很欣賞那裡的見解。

I know you guys are waiting for the Gartner data, but just looking at the recent SIA data, the MCU segment was down about 4% sequentially in Q4 versus your MCBU business, which was down about 9% sequentially.

我知道你們正在等待 Gartner 數據，但只要看看最近的 SIA 數據，MCU 部門在第四季度環比下降約 4%，而你們的 MCBU 業務環比下降約 9%。

I know you guys look at this data as well.

我知道你們也看這些數據。

Any reason for the big delta?

大三角洲有什麼理由嗎？

Is it sell-in versus sell-through so not a fair comparison?

它是賣出還是賣出，所以不是公平的比較？

I think in any given quarter, you're going to find that the data is more noisy.

我認為在任何給定的季度，您都會發現數據更加嘈雜。

It's easier to look at these on a 4-quarter rolling basis, and that's what we expect when we'll see the 2018 data.

在 4 個季度的滾動基礎上查看這些更容易，這就是我們在看到 2018 年數據時的預期。

So there is no doubt in our mind we're gaining market share.

因此，毫無疑問，我們正在獲得市場份額。

But quarter-to-quarter, the numbers can be more noisy.

但每個季度，數字可能會更加嘈雜。

Our next question will come from Gil Alexandre with Darphil.

我們的下一個問題將來自 Gil Alexandre 和 Darphil。

From all that say, it seems that your 300 synergies is pretty good number looking for fiscal '21 or '22.

綜上所述，您的 300 協同效應似乎是尋找 '21 或 '22 財年的不錯數字。

So what I would say to that is we are ahead of the accretion target today.

所以我要說的是，我們今天領先於吸積目標。

Just in some cases, we have pulled some of the synergies in, it had gone better in term of integration but we haven't revised the final number.

只是在某些情況下，我們引入了一些協同效應，在整合方面做得更好，但我們沒有修改最終數字。

The other major change that happened is that business environment recession that we're going through that we have not built into the forecast, nobody had anticipated it back then.

發生的另一個重大變化是我們正在經歷的商業環境衰退，我們沒有納入預測，當時沒有人預料到。

It will depend on the shape of the recovery.

這將取決於復甦的形式。

If the recovery is fast like it has happened in some prior cycles, then we get back on that schedule.

如果恢復像之前的一些週期一樣快速，那麼我們就會回到那個時間表。

If the recovery is a lot slower and it's kind of the L-shaped recovery, it stays in doldrums for a year, then the schedule for achieving that may have to be adjusted.

如果復蘇慢很多，有點像L型複蘇，低迷了一年，那麼實現這一目標的時間表可能就得調整了。

But I don't think we are uncomfortable with the number, total accretion.

但我不認為我們對這個數字、總增長感到不安。

So it really means that you get $8 non-GAAP earnings in fiscal '21 or '22, or you could?

所以這真的意味著你在 21 財年或 22 財年獲得 8 美元的非 GAAP 收益，或者你可以？

Well, you're putting words in my mouth.

好吧，你把話塞到我嘴裡了。

But that was our forecast then.

但那是我們當時的預測。

And again, depending on the shape of the recovery, that is still our target.

而且，根據復甦的形式，這仍然是我們的目標。

Okay.

好的。

And your long-term model targets stays the same as you made in March of 2018?

您的長期模型目標與您在 2018 年 3 月制定的目標保持一致嗎？

Correct.

正確的。

I think state them again for everybody?

我想給大家再說一遍？

So it is 63% gross margin, 22.5% operating expenses and 40.5% operating margin on a non-GAAP basis.

因此，在非 GAAP 基礎上，毛利率為 63%，營業費用為 22.5%，營業利潤率為 40.5%。

Yes, thank you.

是的，謝謝。

And do I need to be concerned that autos represent 17% of your mix?

我是否需要擔心汽車佔您組合的 17%？

Autos has been a very good business and you shouldn't be concerned.

汽車業一直是一項非常好的業務，您不必擔心。

We have just a tremendous funnel of the design wins in automotive for future and all that, significant entry into various electric vehicles around the world and autonomous vehicles around the world.

我們剛剛獲得了未來汽車設計的巨大漏斗，以及所有這些，重要進入世界各地的各種電動汽車和世界各地的自動駕駛汽車。

So there's really no reason to be concerned.

所以真的沒有理由擔心。

The issue in automotive market have been 2. One is, Europe implemented a new emission standard for their diesel vehicle starting September 1. And all the agencies had a 1-year notice, they knew a year ahead of time, that the new emission standard would go into effect on September 1, 2018.

汽車市場的問題是 2。一個是，歐洲從 9 月 1 日開始對其柴油車實施新的排放標準。所有機構都有 1 年的通知，他們提前一年知道，新的排放標準將於 2018 年 9 月 1 日生效。

September 1, 2018, came and there was no capacity.

2018年9月1日來了，沒有容量了。

People kind of just fell asleep on the switch.

人們有點在開關上睡著了。

So there were millions of cars taking away airport parking lots that can't be on the road because they don't pass emission standard.

所以有數以百萬計的汽車開走了機場停車場，因為它們沒有通過排放標準而不能上路。

So that created a significant dislocation in the European car market, it's working through it, will take more time to work through all that.

因此，這在歐洲汽車市場造成了嚴重的混亂，它正在解決這個問題，將需要更多時間來解決所有這些問題。

So that was one issue.

所以這是一個問題。

And the second issue was the slowdown in China.

第二個問題是中國經濟放緩。

China is now the largest automotive market, larger than U.S. and larger than Europe.

中國現在是最大的汽車市場，比美國大，也比歐洲大。

And China is going through its own issues of slowdown and stock market crash and some of the people's wealth has been affected.

中國正在經歷自己的經濟放緩和股市崩盤問題，一些人的財富受到了影響。

So the China automotive market, all that will come back.

所以中國汽車市場，一切都會回來。

And Gil, if I can add one more point.

吉爾，如果我能再補充一點的話。

The consumption of electronics going into cars continues to go up year after year after year.

汽車電子產品的消耗量年復一年地繼續上升。

So -- and in many years, that consumption of electronics going up offsets any reduction in production as well.

所以——多年來，電子產品消費的上升也抵消了產量的下降。

And so that's been the long-term trend and remain so.

因此，這一直是長期趨勢，並且仍然如此。

We'll take our next question from Kevin Cassidy with Stifel.

我們將接受來自 Stifel 的 Kevin Cassidy 的下一個問題。

Maybe just on the 32-bit micro traction that you're seeing.

也許就在您所看到的 32 位微型牽引力上。

Can you just say what end markets it is?

你能說說它是什麼終端市場嗎？

Maybe -- your discussion around automotive, maybe that plays into it.

也許 - 你關於汽車的討論，也許會發揮作用。

But can you say which end markets you're gaining the traction?

但是您能說出您正在吸引哪些終端市場嗎？

We're broadly represented in the 32-bit microcontroller market.

我們廣泛涉足 32 位微控制器市場。

The standard products are broadly represented in all the end markets, it's a ubiquitous product.

標準產品在所有終端市場都有廣泛的代表，是無處不在的產品。

I can't pick any one of them that's necessarily the one that's going there.

我不能選擇其中任何一個必然是去那裡的那個。

But we've been coming off of a -- a being lower in the rankings.

但我們已經擺脫了 - 排名較低。

We're rapidly coming up the rankings.

我們正在迅速提高排名。

And as we do that, it has to come from all the different segments that we play in.

當我們這樣做時，它必須來自我們參與的所有不同領域。

Okay, great.

好的，太好了。

Maybe is there such a thing as an upgrade from the -- your 8- and 16-bit customers going to 32?

也許有從您的 8 位和 16 位客戶升級到 32 位這樣的事情嗎？

Is that helping your traction?

這有助於你的牽引力嗎？

No, not at all.

一點都不。

I think, the 8- and 16-bits are continuing to do well.

我認為，8 位和 16 位繼續表現良好。

And again, when you see the annual results for 2018, you'll see that all 3 segments as it was in prior years are doing well.

再一次，當你看到 2018 年的年度業績時，你會發現所有 3 個細分市場都像往年一樣表現良好。

The 32-bit, we have more capabilities that have come both organically as well as through the acquisitions.

對於 32 位，我們擁有更多的功能，這些功能既有自發的，也有通過收購獲得的。

It's allowing us to play in a number of incremental markets that perhaps we couldn't get to a few years ago.

它使我們能夠在許多幾年前可能無法進入的增量市場中發揮作用。

And so I think the point of providing some color was there was a sense of perhaps 32-bit was still very small for us and we were just playing in 8 and 16s.

所以我認為提供一些顏色的意義在於，32 位對我們來說可能仍然很小，我們只是在玩 8 位和 16 位。

Now 32-bit, at over $1.2 billion annualized based on the last 2 quarters, is a pretty significant portion of a $3 billion-plus annualized microcontroller market for us.

現在 32 位，根據過去兩個季度的年化價值超過 12 億美元，對我們來說是年化超過 30 億美元的微控制器市場中相當重要的一部分。

We'll go next to Chris Rolland with Susquehanna.

我們將和 Susquehanna 一起去 Chris Rolland 旁邊。

Steve, so regardless of the SEC's opinion, this analyst supports you that the standard should be sell-through, for what it's worth.

史蒂夫，所以無論 SEC 的意見如何，這位分析師都支持你，該標準應該是銷售的，因為它的價值。

But in terms of a question, now that we're a few quarters into Microsemi, what has been the biggest positive surprise for you in terms of products and traction and demand for those products positively since you guys closed?

但就一個問題而言，既然我們進入 Microsemi 幾個季度，自你們關閉以來，在產品和對這些產品的積極影響和需求方面，對你們來說最大的驚喜是什麼？

So I would say that we confirm usually a lot of positives after we close the acquisition.

所以我想說，在完成收購後，我們通常會確認很多積極因素。

We don't usually find new positives because the management's always, those are the positive they bring out when they're selling their company, so they're really not hidden positives.

我們通常不會發現新的積極因素，因為管理層總是，這些是他們在出售公司時帶來的積極因素，所以它們真的不是隱藏的積極因素。

We usually find some new negatives that we may not have known or may not have fully understood or may not have been fully explained as you have seen.

我們通常會發現一些我們可能不知道或可能沒有完全理解或者可能沒有像您所看到的那樣得到充分解釋的新底片。

But on the positive side, we don't get surprises but we get confirmation.

但從積極的方面來說，我們沒有得到驚喜，而是得到了確認。

And here, as I said, we got a very good confirmation, the products are very good, customer sockets are very sticky in discrete military products, in FPGA sockets, in a lot of the analog sockets, in timing business and data center businesses.

在這裡，正如我所說，我們得到了很好的確認，產品非常好，客戶插座在分立軍用產品、FPGA 插座、許多模擬插座、計時業務和數據中心業務中非常粘。

They're very good businesses, they're good sticky sockets, very complex products as well as very simple discrete product.

他們是非常好的企業，他們是很好的粘性插座，非常複雜的產品以及非常簡單的分立產品。

So it has a range of products and very, very good engineering teams, very, very good work done.

所以它有一系列的產品和非常非常好的工程團隊，完成了非常非常好的工作。

And I think we have continuously said that we feel very good about it.

而且我認為我們一直在說我們對此感覺非常好。

Business fits very well with Microchip.

業務與 Microchip 非常契合。

We have truly enhanced the ASPs and gross margins by a methodology of discontinuing the -- some of the discounts and all that.

我們通過停止一些折扣和所有這些的方法，真正提高了 ASP 和毛利率。

We brought the inventories to the right levels.

我們使庫存達到了正確的水平。

Internal inventory, we're still working through.

內部庫存，我們仍在努力。

As we revamp the factories, I think they will have some more positive effect.

隨著我們改造工廠，我認為它們會產生一些更積極的影響。

So all that is very good.

所以這一切都很好。

I think we feel good about where we are.

我認為我們對自己的處境感覺良好。

Great.

偉大的。

And then on some of the PMCS products, whether it's optical or storage, given kind of the well-known storage slowdown trends that we've seen out there more broadly, and then some guys talking about a data center slowdown or hyperscale digestion out there, have you seen any of this at all?

然後在一些 PMCS 產品上，無論是光學產品還是存儲產品，考慮到我們已經更廣泛地看到的一種眾所周知的存儲放緩趨勢，然後一些人談論數據中心放緩或超大規模消化，你見過這些嗎？

And have you seen that play into either optical or storage for you guys?

你們有沒有看到它對你們的光學或存儲有影響？

I think, built into our guidance for this quarter, as I mentioned earlier, it does reflect that there is some weakness in those 2 segments in communications and data center.

我認為，正如我之前提到的，在我們本季度的指導中，它確實反映了通信和數據中心這兩個領域存在一些弱點。

It's not different from what others have been talking about as well.

這也與其他人一直在談論的內容沒有什麼不同。

And we are seeing that in the Microsemi products that play into those segments.

我們在參與這些細分市場的 Microsemi 產品中看到了這一點。

But I think I don't think anybody questions the strength of data center or communication market as a good market longer term.

但我認為，我認為沒有人質疑數據中心或通信市場的實力是一個長期良好的市場。

Any segment is going to go through inventory digestion in cycles.

任何一個細分市場都會周期性地進行庫存消化。

The question we were dealing with was, is Microsemi a good business?

我們要處理的問題是，Microsemi 是一家好公司嗎？

Is it the right direct acquisition?

直接收購合適嗎？

Is short-term cycle coming in?

短線週期來了？

And having some hyperscale digestion for a quarter or 2 will not really factor into our decision.

在四分之一或兩個季度內進行超大規模消化並不會真正影響我們的決定。

I think this will be a very good business long term.

我認為從長遠來看，這將是一項非常好的業務。

Our next question will come from Rajvindra Gill with Needham and Company.

我們的下一個問題將來自 Needham and Company 的 Rajvindra Gill。

Forgive me if this question was asked because I'm joining late, but I was wondering if you can make a distinction between any potential trade settlement or trade agreement versus the actual deceleration that's happening in the Chinese economy.

如果因為我加入晚了而問這個問題，請原諒我，但我想知道你是否可以區分任何潛在的貿易結算或貿易協定與中國經濟正在發生的實際減速。

So meaning, if there is some sort of trade settlement, what impact would that have in the business environment?

那麼意思是，如果有某種貿易結算，會對商業環境產生什麼影響？

Or is it just maybe taking 1 risk off the table but the reality is that the economy is slowing down dramatically and the trade agreement would really more have a sentiment improvement but nothing really changing in terms of actual business?

或者它可能只是將 1 個風險從桌面上移開，但現實是經濟正在急劇放緩，貿易協定真的會更好地改善情緒，但在實際業務方面並沒有真正改變？

Just wondering if you could -- or if you -- maybe if you could just elaborate on that.

只是想知道你是否可以——或者如果你——也許你可以詳細說明一下。

So Raji, I think our assessment is that trade is the problem why Chinese economy is weakening so much.

所以拉吉，我認為我們的評估是貿易是中國經濟如此疲軟的問題。

China has been the production center for the world.

中國一直是世界的生產中心。

And as these trades came in, Chinese goods became more expensive and threaten to go more expensive, with $200 billion of Chinese goods getting 25% tariff, that's a $50 billion tax.

隨著這些貿易的進入，中國商品變得更加昂貴，而且有可能變得更加昂貴，2000 億美元的中國商品被徵收 25% 的關稅，即 500 億美元的稅。

So companies have moved production out of China to the extent they could, to the extent the product was running in 2 different factories and 1 was outside.

因此，公司已經盡可能地將生產轉移出中國，以至於產品在 2 家不同的工廠生產，1 家在國外生產。

But there is just not enough capacity outside of China to take all that outside.

但是中國以外的地區沒有足夠的能力將所有這些都帶到國外。

But there are lots of them in works.

但是在作品中有很多。

With the tariffs, Chinese stock market has taken a major hit.

由於關稅，中國股市受到重創。

And Chinese consumers use the stock market as the cash machine to run their businesses and buy cars and buy stocks.

而中國消費者把股市當作提款機來經營他們的企業、買車和買股票。

So I think you cannot take the trade issue away from the Chinese economy.

所以我認為你不能把貿易問題從中國經濟中剝離出來。

As the trade issue is settled, that is the boost that the Chinese economy will need.

隨著貿易問題的解決，這是中國經濟所需要的提振。

And then the people will have to think about do they stop taking factories outside of China or would the trade talk settle, all that effort stops.

然後人們將不得不考慮他們是否停止將工廠轉移到中國以外的地方，或者貿易談判是否會解決，所有這些努力都會停止。

I can't know what would happen there.

我不知道那裡會發生什麼。

Is there a future risk?

未來有風險嗎？

If there is complete removal of trade barriers, then I think nobody's want to do the work to move the factories outside.

如果完全消除貿易壁壘，那麼我認為沒有人願意做將工廠遷往國外的工作。

If the settlement happens where there's significant barrier on both sides, then all that will continue.

如果和解發生在雙方存在重大障礙的地方，那麼一切都會繼續下去。

That's helpful.

這很有幫助。

And along those same lines, do you think there will be some sort of fiscal stimulus in addition to the -- if there's a trade agreement but a fiscal stimulus coming out of the Chinese government?

沿著同樣的思路，你認為除了 - 如果有貿易協議但中國政府出台財政刺激措施之外，還會有某種財政刺激措施嗎？

I thought there already was one.

我以為已經有一個了。

There are some small ones that have been done.

有一些小的已經完成了。

But we don't have any inside knowledge of them.

但我們對他們沒有任何內部消息。

Post New Year?

過年後？

Post-Chinese New Year?

後春節？

I think there was 1 small one done.

我認為完成了 1 個小的。

But I would think, yes, if there is a settlement in trade post-Chinese New Year, whenever Chinese economy has been weak, that's what they have done, stimulus for various things.

但我想，是的，如果在中國農曆新年之後的貿易問題上達成和解，每當中國經濟疲軟時，他們就會這樣做，刺激各種事情。

That's largely predictable.

這在很大程度上是可以預見的。

And I don't know, I don't have a line to the Premier, but I think that's really what would happen.

我不知道，我沒有接到州長的電話，但我認為這真的會發生。

We'll take our next Janet Ramkissoon from Quadra Capital.

我們將從 Quadra Capital 接下我們的下一位 Janet Ramkissoon。

Just a question about China again.

又是關於中國的問題。

Have you -- could you comment on the business with ZTE in the quarter?

您能否評論本季度與中興通訊的業務？

Did you see a recovery there?

你在那裡看到復甦了嗎？

And do you have any exposure specifically to Huawei?

你有沒有專門接觸過華為？

So ZTE had no restrictions in the quarter and our business was normal.

所以中興這個季度沒有限制，我們的業務也很正常。

I think we said in the prior quarter, there was some demand distraction where during the time, ZTE couldn't build a product.

我想我們在上一季度說過，在這段時間裡，中興通訊無法製造產品，存在一些需求干擾。

They lost some designs and competitor picked it up.

他們丟失了一些設計，競爭對手將其撿起。

And in certain cases, we got design with a competitor also; in certain cases, we did not.

在某些情況下，我們也得到了競爭對手的設計；在某些情況下，我們沒有。

But ZTE business is kind of normal.

但是中興的業務還算正常。

The Huawei business is normal.

華為業務正常。

There is a lot of talk about the U.S. indictment and their CFO has been detained in Canada.

有很多關於美國起訴的話題，他們的首席財務官在加拿大被拘留。

There has been no impact of any of that on the Huawei business yet.

目前還沒有對華為業務產生任何影響。

Our next question will come from Craig Ellis with B. Riley FBR.

我們的下一個問題將來自 Craig Ellis 和 B. Riley FBR。

Steve, I wanted to go back to the issue of integration with Microsemi but approach it more qualitatively than quantitatively understanding that you're not changing any target at this point.

史蒂夫，我想回到與 Microsemi 集成的問題，但是從定性上而不是從定量上理解你此時沒有改變任何目標。

So as we look at calendar 2019, can you just touch on what the key integration milestones are, objectives are, top 2 or 3, for sales items and channel management?

因此，當我們回顧 2019 年的日曆時，您能否談談銷售項目和渠道管理的關鍵集成里程碑是什麼，目標是前 2 名還是前 3 名？

And then the follow-up, I'll just hit it right now because it's similar.

然後是後續，我現在就點擊它，因為它很相似。

If we looked lower on the income statement at manufacturing and operating expenses, what would be some of the key issues you'd want to tackle this year in those areas as well?

如果我們在製造和運營費用的損益表上看得更低，那麼今年您希望在這些領域解決的一些關鍵問題是什麼？

We're moving forward on a very, very wide beachfront, so pick one.

我們正在一個非常非常寬闊的海濱前行，所以選擇一個吧。

When we bought Microsemi, Microsemi compiled their results on 21 different ERP systems, business unit by business unit, and then they are compiled, it is under like a conglomerate.

當我們收購 Microsemi 時，Microsemi 在 21 個不同的 ERP 系統上編譯了他們的結果，一個業務部門一個業務部門，然後他們被編譯，它就像一個聯合企業。

We -- the companies we have bought, we have brought them all into our enterprise system and ran a single enterprise system for years and years.

我們——我們收購的公司，我們將它們全部納入我們的企業系統，並運行一個單一的企業系統多年。

With Microsemi, we have said, we're going to go down to 2 systems.

我們已經說過，對於 Microsemi，我們將減少到 2 個系統。

I would love to go down to 1, but the work was just too much.

我很想降到 1，但工作量太大了。

So we were 22, one of us and 21 of Microsemi.

所以我們 22 歲，我們中的一員和 Microsemi 的 21 歲。

From 22, we'll go down to 2. And we're making progress.

從 22，我們將下降到 2。我們正在取得進展。

We took one business in into our system on November 1. We took 3 on February 1. We have another 3-or-so planned for May 1. And then there'll be a cadence of these go-live every quarter.

我們在 11 月 1 日將一項業務納入我們的系統。我們在 2 月 1 日採取了 3 項業務。我們還計劃在 5 月 1 日進行另外 3 項左右的業務。然後每個季度都會有這些上線的節奏。

In another 12 to 18 months, we will consolidate.

再過 12 到 18 個月，我們將整合。

So that's a huge project with lots of synergy and accretion coming from that.

所以這是一個巨大的項目，其中有很多協同作用和增長。

The business units in terms of the marketing and design and pipelines and integration with our technologies and factories and all that is largely some done, some ongoing.

業務部門在營銷和設計以及管道以及與我們的技術和工廠的集成方面以及所有這些大部分已經完成，一些正在進行中。

Most of Microsemi parts are not going to come into our factories.

大多數 Microsemi 零件不會進入我們的工廠。

Like PMC-Sierra parts, they run in foundries, and FPGA parts run in foundries, and they are not going to come in inside.

像 PMC-Sierra 零件，它們在代工廠中運行，而 FPGA 零件在代工廠中運行，它們不會進入內部。

But certain products of other business units may come in, and that's an ongoing process.

但其他業務部門的某些產品可能會進來，這是一個持續的過程。

As far as sales is concerned, sales all work for a common sales leader.

就銷售而言，銷售都是為一個共同的銷售主管工作。

So that's already done.

所以這已經完成了。

The biggest job in sales is cross-training and cross-pollinating.

銷售中最大的工作是交叉培訓和交叉授粉。

So a Microchip salesperson feel very confident selling Microsemi products, and in a total system solution gets all those designed in.

因此，Microchip 的銷售人員在銷售 Microsemi 產品時感到非常自信，並且在一個完整的系統解決方案中包含了所有設計的內容。

And vice versa, a Microsemi person feels very confident with Microchip.

反之亦然，Microsemi 的人對 Microchip 非常有信心。

With $4 billion company on one side, $2 billion company on other side, that takes some time.

一方面有 40 億美元的公司，另一方面有 20 億美元的公司，這需要一些時間。

And that's progressing.

這正在取得進展。

And how we kind of make it work is really as a team where you call on the expert from the Microchip side or the Microsemi side to make the joint call so you start to get your total system solution effect.

我們如何讓它發揮作用實際上是作為一個團隊，您可以從 Microchip 方面或 Microsemi 方面召集專家進行聯合通話，這樣您就可以開始獲得整體系統解決方案的效果。

And that, we're already getting.

而且，我們已經得到了。

The reviews we see from various businesses in the Microsemi reviews, we see Microchip parts designed in, in the future boards and on the Microchip reviews, we see the Microsemi parts designed in.

我們在 Microsemi 評論中看到來自不同企業的評論，我們看到 Microchip 部件設計在未來的電路板和 Microchip 評論中，我們看到 Microsemi 部件設計在。

So that is starting to happen.

所以這開始發生了。

But a lot more needs to happen.

但還有很多事情要做。

That's helpful.

這很有幫助。

And on the last point, Steve, is that something that will bear fruit from a revenue standpoint this year?

關於最後一點，史蒂夫，從今年的收入角度來看，這是否會取得成果？

Or does that just put you in a position where you've got the design win and then you work through what can often be a 12- to 18-month gestation period before that design would go to revenue?

或者這是否只是讓您處於設計獲勝的位置，然後在該設計實現收益之前通常需要 12 到 18 個月的醞釀期？

It's the latter.

是後者。

The designs take about 9 months to 2 years to go to production depending on how complex it is.

根據設計的複雜程度，這些設計需要大約 9 個月到 2 年的時間才能投入生產。

You could have a very simple, some discrete parts, et cetera, something that are designed in.

你可以有一個非常簡單的，一些離散的部分，等等，一些設計的東西。

There could be faster, but there are complicated parts which could be longer.

可能會更快，但有些複雜的部分可能會更長。

So it's really, yes, there's a gestation period after you get the design in.

所以這真的是，是的，在你得到設計之後有一個醞釀期。

You should see some revenue coming out of TSS in 2020, and then it accelerates from there.

你應該會在 2020 年看到 TSS 產生一些收入，然後從那裡加速。

That concludes today's question-and-answer session.

今天的問答環節到此結束。

I'd like to turn the conference back to Mr. Steve Sanghi for any additional or closing remarks.

我想將會議轉回給 Steve Sanghi 先生，聽取任何補充或結束語。

Well, we want to thank everyone for joining this call today.

那麼，我們要感謝大家今天加入這個電話會議。

And we'll be seeing some of you between now and the next conference call.

從現在到下一次電話會議，我們會見到你們中的一些人。

On the road, there are various conferences we'll be going to.

在路上，我們將參加各種會議。

So thank you.

所以謝謝。

This concludes today's call.

今天的電話會議到此結束。

Thank you for your participation, you may now disconnect.

感謝您的參與，您現在可以斷開連接。