微晶片科技 (MCHP) 2023 Q4 法說會逐字稿

Greetings, and welcome to the Microchip Technologies Q3 and FY '23 Financial Results Conference Call.

您好，歡迎參加 Microchip Technologies 第三季及 23 財年財務業績電話會議。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Eric Bjornholt, Senior Vice President and CFO. Thank you, and you may proceed, sir.

提醒一下，本次會議正在錄製中。現在，我很高興介紹主持人，高級副總裁兼財務長艾瑞克·比約霍爾特先生。謝謝，先生，您可以繼續了。

Okay. Thank you, and good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions and that actual events or results may differ materially. 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. In attendance with me today are Ganesh Morley, Microchip's President and CEO; Steve Sanghi, Microchip's Executive Chair; and Sajid Daudi, Microchip's Head of Investor Relations.

好的。謝謝大家，下午好。在本次電話會議中，我們將對公司未來事件或未來財務表現做出預測和其他前瞻性陳述。我們在此提醒您，此類陳述僅為預測，實際事件或結果可能有重大差異。請您參閱我們今天的新聞稿以及我們最近向美國證券交易委員會 (SEC) 提交的文件，其中列出了可能影響 Microchip 業務和營運績效的重要風險因素。今天與我一同出席電話會議的嘉賓包括 Microchip 總裁兼執行長 Ganesh Morley、Microchip 執行主席 Steve Sanghi 以及 Microchip 投資者關係主管 Sajid Daudi。

I will comment on our fourth quarter and full fiscal year 2023 financial performance. Ganesh will then provide commentary on our results and discuss the current business environment as well as our guidance, and Steve will provide an update on our cash return strategy. We will then be available to respond to specific investor and analyst questions. We are including information in our press release and this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page of our website at www.microchip.com, and included reconciliation information in our earnings press release which we believe you will find useful when comparing our GAAP and non-GAAP results.

我將對我們2023財年第四季和全年的財務表現進行評論。 Ganesh隨後將對我們的業績進行評論，並討論當前的商業環境和我們的預期，Steve將介紹我們現金回報策略的最新情況。之後，我們將回答投資人和分析師的具體問題。我們將在新聞稿和本次電話會議中提供有關各種GAAP和非GAAP指標的資訊。我們已在公司網站www.microchip.com的投資者關係頁面上發布了完整的GAAP與非GAAP對賬表，並在盈利新聞稿中包含了對賬信息，我們相信這些信息在比較GAAP和非GAAP業績時會有所幫助。

We have also identified and posted a summary of our outstanding debt and our leverage metrics on our website. I will now go through some of the operating results, including net sales, gross margin and operating expenses. Other than net sales, I will be referring to these results on a non-GAAP basis, which is based on expenses prior to the effects of our acquisition activities, share-based compensation and certain other adjustments as described in our earnings press release and in the reconciliation on our website.

我們也已確認並發布了未償債務和槓桿率指標的摘要，並將其發佈在我們的網站上。現在，我將介紹一些營運業績，包括淨銷售額、毛利率和營運費用。除淨銷售額外，我將以非公認會計準則 (Non-GAAP) 為基礎，該準則基於未計入收購活動、股權激勵以及我們收益新聞稿和網站上對帳表中所述的某些其他調整的影響的費用。

Net sales in the March quarter were $2.233 billion, which was up 2.9% sequentially. We have posted a summary of our net sales by product line and geography on our website for your reference. On a non-GAAP basis, gross margins were a record at 68.3%. Operating expenses were at 20.7% and operating income was a record 47.65%. Non-GAAP net income was a record $907.8 million, non-GAAP earnings per diluted share was a record $1.64 and $0.01 above the high end of our guidance range. On a GAAP basis in the March quarter, gross margins were a record at 68%.

3月當季淨銷售額為22.33億美元，季增2.9%。我們已在網站上發布了按產品線和地區劃分的淨銷售額摘要，供您參考。以非公認會計準則 (Non-GAAP) 計算，毛利率達到創紀錄的68.3%。營運費用為20.7%，營運利潤達到創紀錄的47.65%。以非公認會計準則 (Non-GAAP) 計算，淨利達到創紀錄的9.078億美元，非公認會計準則 (Non-GAAP) 攤薄每股收益達到創紀錄的1.64美元，比我們預期區間的上限高出0.01美元。以公認會計準則 (GAAP) 計算，3月當季毛利率達到創紀錄的68%。

Total operating expenses were $671.3 million and included acquisition and tangible amortization of $167.4 million, vessel charges of $2.1 million, $2.3 million of acquisition-related and other costs and share-based compensation of $37.8 million. GAAP net income was a record $604 million, resulting in a record $1.09 in earnings per diluted share. As compared to a year ago quarter, our March quarter GAAP tax expense was adversely impacted by a variety of factors, notably the tax expense recorded as a result of the capitalization of R&D expenses for tax purposes.

總營運費用為6.713億美元，其中包括1.674億美元的收購及有形攤銷、210萬美元的船舶費用、230萬美元的收購相關費用及其他費用，以及3780萬美元的股權激勵費用。 GAAP淨利創下6.04億美元的紀錄，每股攤薄收益也創下1.09美元的紀錄。與去年同期相比，我們3月份季度的GAAP稅費受到多種因素的不利影響，尤其是因研發費用資本化而計入的稅費。

For fiscal year 2023, net sales were a record $8.439 billion and were up 23.7% from net sales in fiscal year 2022. On a non-GAAP basis, gross margins were a record 67.8%. Operating expenses were 20.9% of sales and operating income was a record 46.9% of sales. Non-GAAP net income was a record $3.353 billion, and EPS was a record at $6.02 per diluted share. On a GAAP basis, gross margins were also a record at 67.5%, operating expenses were 30.6% of sales and operating income was 36.9% of sales.

2023財年，淨銷售額創下84.39億美元紀錄，較2022財年成長23.7%。非公認會計準則（Non-GAAP）毛利率達創紀錄的67.8%。營運費用佔銷售額的20.9%，營運收入佔銷售額的46.9%，創下歷史新高。非公認會計準則淨收入達創紀錄的33.53億美元，每股收益達創紀錄的6.02美元。公認會計準則毛利率同樣創下67.5%的紀錄，營運費用佔銷售額的30.6%，營運收入佔銷售額的36.9%。

Net income was $2.238 billion and EPS was $4.02 per diluted share. Our non-GAAP cash tax rate was 10.8% in the March quarter and 10.9% for fiscal year 2023. Our non-GAAP tax rate for fiscal year 2024 is expected to be about 14%, which is exclusive of the transition tax and any tax audit settlements related to taxes occurred in prior fiscal years. Our fiscal '24 cash tax rate is expected to be higher than our fiscal '23 tax rate for a variety of factors, including lower availability of tax attributes, such as net operating losses and tax credits, lower tax depreciation with our expectation for lower capital expenditures in the U.S. in fiscal 2024 as well as the impact of current tax rules requiring the capitalization of R&D expenses for tax purposes.

淨利為22.38億美元，每股攤薄收益為4.02美元。我們3月季的非公認會計準則現金稅率為10.8%，2023財年為10.9%。我們預計2024財年的非公認會計準則稅率約為14%，此稅率不包括過渡稅以及任何與前幾個財年發生的稅務審計和解。我們預計24財年的現金稅率將高於23財年的稅率，原因包括：可獲得的稅項（例如淨營運虧損和稅收抵免）減少；稅收折舊減少（我們預計2024財年美國資本支出將減少）；以及現行稅法要求將研發費用資本化以用於稅收目的的影響。

We are still hopeful that the tax rules requiring companies to capitalize R&D expenses will be pushed out or repealed. If this were to happen, we would anticipate about a 200 basis point favorable adjustment to Microchip's non-GAAP tax rate in future periods. Our inventory balance at March 31, 2023, was $1.325 billion. We had 169 days of inventory at the end of the March quarter, which was up 17 days from the prior quarter's level. We have increased our raw materials inventory to help protect our internal manufacturing supply lines. We are carrying higher work in progress to help maximize the utilization of constrained equipment as well as to position ourselves to take advantage of new equipment installations, which should relieve bottlenecks.

我們仍然希望那些要求公司將研發費用資本化的稅收規則能夠被推遲或廢除。如果這種情況發生，我們預期未來期間微晶片的非公認會計準則稅率將出現約200個基點的有利調整。截至2023年3月31日，我們的庫存餘額為13.25億美元。截至3月季末，我們的庫存週轉天數為169天，比上一季增加了17天。我們增加了原料庫存，以保護我們的內部製造供應鏈。我們正在增加在製品庫存，以最大限度地提高受限設備的利用率，並充分利用新設備的安裝，從而緩解瓶頸。

In certain circumstances, we have allowed customers to push out delivery schedules for products that were very far through the manufacturing process. We are investing and building inventory for long-lived, high-margin products whose manufacturing capacity is being end of life by our supply chain partners, and these last-time buys represented about 7 days of inventory at the end of March. We feel that we need to take actions to help ensure that our supply lines can feed our growth beyond what we expect in the June 2023 quarter. We are targeting actions to reduce our inventory down between 5 and 10 days in the June quarter. Inventory at our distributors in the March quarter was at 24 days, which was up 2 days from the prior quarter's level.

在某些情況下，我們允許客戶延遲已完成生產流程的產品的交貨時間。我們正在投資和建立庫存，用於那些壽命長、利潤率高的產品，這些產品的產能即將被我們的供應鏈合作夥伴淘汰。截至3月底，這些最後一次採購的庫存量約為7天。我們認為我們需要採取行動，以確保我們的供應鏈能夠滿足我們在2023年6月當季超出預期的成長需求。我們的目標是在6月當季將庫存減少5至10天。 3月當季，我們經銷商的庫存量為24天，比上一季增加了2天。

Our cash flow from operating activities was $709.5 million in the March quarter. Included in our cash flow from operating activities was a net $79.5 million of long-term supply assurance receipts from customers and suppliers. We are going to adjust these items out of our free cash flow to determine the adjusted free cash flow that we will return to shareholders through dividends and share repurchases as these payments will be refundable over time as purchase commitments are fulfilled.

3月季度，我們的營運活動現金流為7.095億美元。其中，來自客戶和供應商的長期供應保證淨額為7,950萬美元。我們將從自由現金流中調整這些項目，以確定調整後的自由現金流，並透過股利和股票回購返還給股東，因為這些款項將隨著採購承諾的履行而逐步退還。

Our adjusted free cash flow was $517.3 million in the March quarter and was adversely impacted by our working capital investments this quarter, including $158.4 million increase in inventory and $130.3 million increase in accounts receivable, which we do not expect to repeat in the June quarter.

我們 3 月季度的調整後自由現金流為 5.173 億美元，並受到本季營運資本投資的不利影響，包括庫存增加 1.584 億美元和應收帳款增加 1.303 億美元，我們預計 6 月季度不會重複出現這種情況。

As of March 31, our consolidated cash and total investment position was $234 million. We paid down $153 million of total debt in the March quarter, and our net debt was reduced by $98.1 million. Over the last 19 full quarters that we closed the Microsemi acquisition and incurred over $8 billion of debt to do so, we have now paid down $6.35 billion of the debt and continue to allocate substantially all of our excess cash beyond dividends and stock buyback to bring down this debt. Our adjusted EBITDA in the March quarter was a record at $1.139 billion and 51% of net sales.

截至3月31日，我們的合併現金及總投資狀況為2.34億美元。我們在3月季度償還了1.53億美元的總債務，淨債務減少了9,810萬美元。在過去19個完整季度中，我們完成了對美高森美的收購，並為此承擔了超過80億美元的債務，目前我們已償還了63.5億美元的債務，並繼續將除股息和股票回購之外的大部分剩餘現金用於償還債務。我們3月季度的調整後息稅折舊攤銷前利潤（EBITDA）創下11.39億美元的紀錄，佔淨銷售額的51%。

Our trailing 12-month adjusted EBITDA was also a record at $4.288 billion, our net debt to adjusted EBITDA was 1.45 at March 31, 2023, down from 1.56 at December 31, 2022, and down from 2.32 at March 31, 2022. Getting our net leverage below 1.5 is a significant milestone for Microchip on its capital returns earnings, which Steve will talk about shortly. Capital expenditures were $112.7 million in the March quarter and $486.2 million for fiscal year 2023. Our expectation for capital expenditures for fiscal year 2024 is between $300 million and $400 million as we still have a lot of equipment that was ordered with long lead times that will be received over the next year. We expect that our capital investments will continue to provide us with increased control over our production during periods of industry-wide constraints. Depreciation expense in the March quarter was $54.1 million.

我們過去 12 個月的調整後 EBITDA 也創下了 42.88 億美元的紀錄，我們的淨債務與調整後 EBITDA 之比在 2023 年 3 月 31 日為 1.45，低於 2022 年 12 月 31 日的 1.56，也低於 203 月 2031 日的 20312 20312 20312 20312 20312 2032 2032 20322023 月的 20312 20312。將淨槓桿率降至 1.5 以下對於 Microchip 的資本回報收益來說是一個重要的里程碑，Steve 稍後會談到這一點。 3 月季度的資本支出為 1.127 億美元，2023 財年為 4.862 億美元。我們預計 2024 財年的資本支出將在 3 億至 4 億美元之間，因為我們仍有許多訂購的長交貨期設備將在明年收到。我們預計，在全行業受限期間，我們的資本投資將繼續幫助我們更好地控制生產。 3 月季度的折舊費用為 5,410 萬美元。

I will now turn it over to Ganesh to give us comments on the performance of the business in the March quarter as well as our guidance for the June quarter. Ganesh?

現在我將把時間交給 Ganesh，請他對 3 月份季度的業務表現以及 6 月份季度的預期做出評論。 Ganesh？

Thank you, Eric, and good afternoon, everyone.

謝謝你，埃里克，大家下午好。

Our March quarter results were strong in the context of a slowing macro environment, marked by our continued disciplined execution as well as our resilient end market. Net sales grew 2.9% sequentially and 21.1% on a year-over-year basis to achieve another all-time record of $2.23 billion. The March quarter represented our tenth consecutive quarter of sequential growth. Non-GAAP gross margin came in at the high end of our guidance at a record 68.3%, up 171 basis points from the year ago quarter. Non-GAAP operating margin also came in close to the high end of our guidance at a record 47.65%, up 292 basis points from the year ago quarter.

在宏觀經濟放緩的背景下，我們三月季度的業績表現強勁，這得益於我們持續嚴謹的執行力以及終端市場的韌性。淨銷售額季增2.9%，年增21.1%，再創22.3億美元的歷史新高。三月季度是我們連續第十個季度實現環比成長。非公認會計準則毛利率達到我們預期的高位，創下68.3%的紀錄，較去年同期上升171個基點。非公認會計準則營業利益率也接近我們預期的高點，創下47.65%的紀錄，較去年同期上升292個基點。

We continue to make investments that we expect to drive the long-term revenue growth, profitability and durability of our business. Our consolidated non-GAAP diluted earnings per share was above the high end of our guidance at a record of $1.64 per share, up 21.5% from the year ago quarter.

我們持續進行投資，預計將推動公司業務的長期收入成長、獲利能力和持久性。本季度，我們合併非公認會計準則稀釋每股盈餘高於預期上限，達到創紀錄的每股1.64美元，較去年同期成長21.5%。

Adjusted EBITDA was 51% of net sales and adjusted free cash flow was 23.2% of net sales in the March quarter continuing to demonstrate the robust cash generation characteristics of our business. We returned $469.9 million to shareholders in dividends and share repurchases in the March quarter, representing 62.5% of our December quarter adjusted free cash flow. Our net leverage exiting March dropped to 1.45x and as we did mention a quarter ago, our capital returns this quarter will increase to 67.5% of our March quarter adjusted free cash flow as we continue on our plan to return 100% of adjusted free cash flow by the March quarter of calendar year 2025.

3月季度，調整後EBITDA佔淨銷售額的51%，調整後自由現金流佔淨銷售額的23.2%，持續展現了我們業務強勁的現金產生能力。 3月季度，我們以股利和股票回購的形式向股東返還了4.699億美元，佔12月季度調整後自由現金流的62.5%。截至3月底，我們的淨槓桿率已降至1.45倍。正如我們上一季所提到的，本季的資本回報率將增至3月季度調整後自由現金流的67.5%，我們將繼續執行到2025年3月季度實現100%調整後自由現金流返還的計劃。

Reflecting on our fiscal year '23 results, it was another one for the record books. Revenue grew 23.7% to finish at a record $8.4 billion. Non-GAAP gross margin, non-GAAP operating margin, non-GAAP EPS, EBITDA and adjusted free cash flow all set new records. We significantly increased the capital return to shareholders in fiscal year '23 to $1.64 billion, representing a 76.6% growth as compared to fiscal year '22 through a combination of increasing dividends, and our formulaic share buyback program. My heartfelt gratitude to all of our stakeholders who enabled us to achieve these outstanding results and especially to the worldwide Microchip team, whose tireless efforts are what enable us to navigate effectively through the business cycle.

回顧我們23財年的業績，這又是一個創紀錄的成績。營收成長23.7%，達到創紀錄的84億美元。非公認會計準則毛利率、非公認會計準則營業利潤率、非公認會計準則每股收益、息稅折舊攤銷前利潤（EBITDA）及調整後自由現金流均創下新高。透過增加股利和製定合理的股票回購計劃，我們大幅提高了23財年的股東資本回報率，達到16.4億美元，較22財年增長76.6%。我衷心感謝所有利害關係人，是他們讓我們取得了這些優異的業績，尤其要感謝全球的Microchip團隊，正是他們的不懈努力，才使我們能夠有效地度過整個商業週期。

Taking a look at our March quarter net sales from a product line perspective, our mixed signal microcontroller net sales set another all-time record, coming in sequentially up 5.8% in the March quarter and up 23.5% on a year-over-year basis. Our 32 bit mix-signal microcontrollers grew at the fastest rate among our mixed-signal microcontroller product line and represented over 48% of our fiscal year '23 mixed signal microcontroller revenue. As you may have noticed, we are clarifying the nomenclature for our microcontrollers going forward to be mixed-signal microcontrollers as they have substantial analog and mixed-signal content integrated on-chip, and as a result, exhibit business characteristics that are more like analog and mixed=signal products.

從產品線角度來看，我們三月季度的淨銷售額，我們的混合訊號微控制器淨銷售額再創歷史新高，季增5.8%，年增23.5%。我們的32位元混合訊號微控制器是我們混合訊號微控制器產品線中成長最快的產品，占我們23財年混合訊號微控制器營收的48%以上。您可能已經注意到，我們正在明確我們未來微控制器的命名，將其統一為混合訊號微控制器，因為它們在晶片上整合了大量類比和混合訊號內容，因此其業務特性更類似於類比和混合訊號產品。

Staying with mixed-signal microcontrollers for a moment, Gartner just published their rankings for calendar year '22. Using our publicly reported mixed-signal microcontroller revenue for calendar year '22, which Gartner unexpectedly underreported for Microchip. We ranked #3 and are just 1.4% away from #1. To put this in perspective, just 3 years ago in calendar year 2019, by our estimate, combined with the Gartner data, we were 16.5% away from #1. We are fast closing on the #1 spot.

先說說混合訊號微控制器，Gartner 剛剛發布了 2022 年度的排名。排名使用了我們公開報告的 2022 年度混合訊號微控制器收入，Gartner 出乎意料地低估了 Microchip 的收入。我們排名第三，距離第一名僅差 1.4%。相較之下，就在三年前的 2019 年，根據我們的估計，結合 Gartner 的數據，我們距離第一名還差 16.5%。而我們正在快速逼近第一的位置。

Moving next to our analog business. Our analog net sales also set another all-time record, coming in sequentially up 1.9% in the March quarter and up 19.9% on a year-over-year basis. Fiscal year '23 analog sales were $2.4 billion, and broke through the $2 billion mark for the first time ever. We are gaining share in our analog business with our total system solutions approach continuing to provide a tailwind for this product line.

接下來是我們的模擬業務。我們的模擬淨銷售額也創下了歷史新高，3月季增1.9%，年增19.9%。 2023財年的類比銷售額為24億美元，首次突破20億美元大關。我們的模擬業務份額正在不斷增長，而我們採用的整體系統解決方案將繼續為該產品線提供輔助。

While we don't normally break out our FPGA product line results, it is noteworthy to report that our March quarter and fiscal year '23 revenue for FPGA for both records. In fact, our fiscal year '23 FPGA revenue exceeded $550 million, grew more than 31% as compared to fiscal year '22 and delivered operating margins of a north of corporate average. Our design win momentum is strong, and we offer market-leading mid-range FPGA solutions with best-in-class low power, reliability and security. At our Investor Day in November 2021, we emphasized the importance of 6 market megatrends for our long-term growth and shared that we expect that our revenue growth from customers and applications within the megatrends to be approximately 2x of Microchip's growth rate.

雖然我們通常不會單獨公佈 FPGA 產品線的業績，但值得一提的是，我們 3 月份季度和 2023 財年的 FPGA 收入均創下歷史新高。事實上，我們 2023 財年的 FPGA 營收超過 5.5 億美元，與 2022 財年相比成長了 31% 以上，營運利潤率遠高於公司平均水準。我們的設計贏單勢頭強勁，我們提供市場領先的中階 FPGA 解決方案，具有一流的低功耗、可靠性和安全性。在 2021 年 11 月的投資者日上，我們強調了六大市場趨勢對我們長期成長的重要性，並表示我們預計來自這些大趨勢內客戶和應用的收入成長將達到 Microchip 成長率的約 2 倍。

We just completed our revenue by megatrend analysis for fiscal year '23. As compared to fiscal year '21, which is the last time we conducted the same analysis, Microchip overall revenue grew 55.2% while revenue from our megatrends grew 108.5%, right in line with our expectation of roughly 2x growth from the megatrend. Revenue from the 6 megatrends represented approximately 45% of our fiscal year '23 revenue as compared to approximately 34% of our fiscal year '21 revenue.

我們剛完成了2023財年按大趨勢劃分的收入分析。與我們上次進行相同分析的2021財年相比，Microchip的整體營收成長了55.2%，而來自大趨勢的營收成長了108.5%，這與我們預期的大趨勢營收成長約兩倍的預期完全一致。六大趨勢的收入約占我們2023財年營收的45%，而約占我們2021財年營收的34%。

We also just completed our revenue by end market analysis for fiscal '23. As compared to fiscal '22, our industrial business grew from 40% to 41% of our revenue. Our data center and computing business grew from 18% to 19% of our revenue. And our consumer appliance business declined from 14% to 12% of our revenue. Automotive and communications infrastructure remained unchanged at 17% and 11% of our revenue, respectively.

我們剛完成了23財年按終端市場劃分的收入分析。與22財年相比，我們的工業業務佔營收的比例從40%成長到41%。我們的資料中心和計算業務佔營收的比例從18%成長到19%。我們的消費性電器業務佔收入的比例從14%下降到12%。汽車和通訊基礎設施業務佔收入的比例保持不變，分別為17%和11%。

As you can see from the data, slowly but surely, we continue to curate an increasing proportion of our business towards less volatile and more resilient end markets. Now for some color on the March quarter. While our overall business remained strong in the March quarter, many of our customers felt the effect of slowing economic activity and increased business uncertainty, request to push out or cancel backlog increase, and we were able to push out significant amounts of backlog to later quarters to help customers with inventory positions.

從數據中可以看出，我們正緩慢但穩定地將越來越多的業務轉向波動性較低、更具韌性的終端市場。現在來回顧一下3月季度。雖然我們的整體業務在3月份季度保持強勁，但許多客戶感受到了經濟活動放緩和業務不確定性增加的影響，推遲或取消積壓訂單的請求有所增加。我們得以將大量積壓訂單延後到後續季度，以協助客戶應對庫存問題。

This resulted in our days of inventory growing. We are comfortable with this inventory growth given the very long life cycles and durable end markets for our products. By taking action to reduce customer inventory overbuild and carrying that inventory on our balance sheet, we expect to increase our odds of achieving a soft landing and also expect to be better positioned to respond to demand growth and the macro environment strengthened.

這導致我們的庫存天數增加。鑑於我們產品的生命週期非常長，且終端市場經久不衰，我們對庫存成長感到滿意。透過採取措施減少客戶庫存過剩，並將這些庫存計入我們的資產負債表，我們預計能夠提高實現軟著陸的幾率，並有望更好地應對需求成長和宏觀環境的增強。

Consistent with the slowing macro environment and the growth in our inventory we have paused most of our internal factory expansion plans, reduced our capital investment plan for fiscal year '24 and taken steps to lower our inventory in the coming quarters. As a result of the uncertain macro environment and multiple quarters worth of backlog on our books, our bookings have slowed down as expected over the last 2 quarters. In order to provide customers with more flexibility in an uncertain demand environment as well as to achieve a more healthy and sustainable long-term supply-demand balance, we are striving to bring average lead times down to under 26 weeks over the course of the second half of 2023.

鑑於宏觀環境放緩及庫存成長，我們暫停了大部分內部工廠擴張計劃，下調了2024財年的資本投資計劃，並採取措施降低未來幾季的庫存。由於宏觀環境的不確定性以及我們訂單積壓了多個季度，過去兩個季度我們的訂單量如預期般放緩。為了在不確定的需求環境中為客戶提供更大的靈活性，並實現更健康、更可持續的長期供需平衡，我們力爭在2023年下半年將平均交貨週期縮短至26週以內。

We believe there are 3 reasons why Microchip's business continues to demonstrate more resilience in the midst of the weakness seen by some of our semiconductor -- some other semiconductor companies: First, on the demand side, the end markets that we have the most exposure to; industrial, which includes aerospace and defense; automotive and data center; and the applications within these end markets where we are strong, are less volatile and comparatively more resilient.

我們認為，在我們一些半導體公司和其他一些半導體公司表現疲軟的情況下，Microchip 的業務繼續表現出更強的韌性，原因有三：首先，在需求方面，我們最關注的終端市場是工業市場，包括航空航天和國防、汽車和數據中心；而這些終端市場中我們雄厚的應用波動性較小，相對而言更有韌性。

Second, on the supply side, a vast majority of our products are built on specialized technologies requiring trailing edge capacity. This is the capacity that has been most constrained over the last 2-plus years and where there was less opportunity to overship to consumption. And third, a laser focus on organic growth for multiple years by concentrating on total system solutions and higher growth megatrends, which we just discussed a few minutes ago, has translated into increased design wins, further share gains and a resultant revenue tailwind.

其次，在供應方面，我們絕大多數產品都基於需要後緣產能的專用技術。在過去兩年多的時間裡，後緣產能受到最大限制，也使得向消費市場超額出貨的機會減少。第三，多年來，我們專注於整體系統解決方案和更高成長趨勢，這體現了我們幾分鐘前討論過的有機成長，這轉化為設計訂單的增加、市場份額的進一步成長以及隨之而來的收入成長。

A quick update regarding the CHIPS Act. We have been getting the benefit of the investment tax credit since the beginning of this year, and we are in the process of submitting our applications for grants to support expansion in several of our domestic factories. The timeline for when grants may be approved is not yet determinable.

關於《晶片保護與資訊系統法案》（CHIPS Act）的簡要更新。自今年年初以來，我們一直享受投資稅收抵免政策，並且正在提交撥款申請，以支持我們幾家國內工廠的擴張。撥款的批准時間尚不確定。

Now let's get to the guidance for the June quarter. Although our backlog for the June quarter is strong, we expect to continue to take active steps to help customers with inventory positions to push out their backlog. Taking all the factors we have discussed on the call today into consideration, we expect our net sales for the June quarter to be up between 1% and 4% sequentially. At the midpoint of our net sales guidance, our year-over-year growth in the June quarter would be a strong 16.5%. We expect our non-GAAP gross margin to be between 68.3% and 68.5% of sales. We expect non-GAAP operating expenses to be between 20.1% and 20.5% of sales, and we expect non-GAAP operating profit to be between 47.8% and 48.4% of sales. We expect our non-GAAP diluted earnings per share to be between $1.63 and $1.65. At the midpoint of our non-GAAP EPS guidance, our year-over-year growth for the June quarter would be a strong 19.7% despite a much higher tax rate than the year ago quarter.

現在來看看6月當季的業績預期。儘管6月當季的訂單量強勁，但我們預計將繼續採取積極措施，幫助有庫存的客戶減少訂單量。綜合考慮我們今天電話會議上討論的所有因素，我們預計6月當季淨銷售額將環比增長1%至4%。以我們淨銷售額預期的中位數，6月當季的年成長將達到強勁的16.5%。我們預期非公認會計準則下的毛利率將介於銷售額的68.3%至68.5%之間。我們預期非公認會計準則下的營運費用將介於銷售額的20.1%至20.5%之間，非公認會計準則下的營運利潤將介於銷售額的47.8%至48.4%之間。我們預計非公認會計準則下的稀釋每股盈餘將介於1.63美元至1.65美元之間。以我們非公認會計準則每股收益指引的中點計算，儘管稅率遠高於去年同期，但 6 月當季的年成長率仍將達到 19.7%。

Finally, as you can see from our March quarter results and our June quarter guidance, our Microchip 3.0 strategy, which we launched 18 months ago is firing on all cylinders as we continue to build and improve what we believe is one of the most diversified, defensible, high growth, high margin, high cash generating businesses in the semiconductor industry. However, we also recognize that we operate in a cyclical industry and that we are not immune to business cycles. But if you review Microchip's speak to trust performance through the business cycles over the last 15-plus years, you will observe our robust and consistent cash generation, gross margin and operating margin results. Although we don't foresee any significant decline in our business, if we were to experience the semiconductor inventory correction, like the industry has seen in the past, we are highly confident that our non-GAAP operating margins would remain well above 40%.

最後，正如您從我們3月季度的業績和6月季度的業績指引中看到的，我們18個月前啟動的Microchip 3.0戰略正在全力推進，我們將繼續構建和改進我們認為是半導體行業最多元化、最具防禦性、高增長、高利潤率和高現金流的業務之一。然而，我們也意識到，我們處於一個週期性行業，我們也無法免受商業週期的影響。但如果您回顧Microchip在過去15年多的商業週期中取得的業績，您會發現我們強勁且持續的現金流、毛利率和營業利潤率。雖然我們預計業務不會出現任何顯著下滑，但如果我們經歷半導體庫存調整，就像行業過去經歷的那樣，我們非常有信心，我們的非公認會計準則營業利潤率將保持在40%以上。

We remain cautiously optimistic about navigating to a soft landing for our business in this cycle and expect our cash generation gross margin and operating margin to once again demonstrate consistency and resiliency through the cycles. With that, let me pass the baton to Steve to talk about our cash return to shareholders. By the way, Steve just published a new book called Up and to the Right, which chronicles building Microchip into a technology juggernaut. Investors and analysts can get additional insights from the book about the foundational elements behind Microchip's long-term business success. Steve?

我們對在本輪週期中實現業務軟著陸仍持謹慎樂觀的態度，並預計我們的現金創造能力、毛利率和營業利潤率將再次展現出在各個週期中的一致性和韌性。至此，我將把接力棒交給史蒂夫，讓他談談我們向股東的現金回報。順便說一句，史蒂夫剛剛出版了一本名為《向上向右》（Up and to the Right）的新書，講述了將微晶片打造為科技巨頭的歷程。投資人和分析師可以從這本書中獲得更多見解，了解微晶片長期業務成功背後的基本要素。史蒂夫？

Thank you, Ganesh, and thanks for the plug on the book, and good afternoon, everyone. I would like to reflect on our financial results announced today and provide you further updates on our cash return strategy. Reflecting on our financial results, I continue to be very proud of all employees of Microchip that have delivered another exceptional quarter while making new records in many respects, namely: Record net sales, record non-GAAP gross margin percentage, record non-GAAP operating margin percentage, record non-GAAP EPS and record adjusted EBITDA and all of that in a continuing challenging environment.

謝謝Ganesh，也謝謝你對這本書的宣傳。大家下午好。我想回顧我們今天公佈的財務業績，並進一步介紹我們的現金回報策略。回顧我們的財務業績，我依然為Microchip的全體員工感到無比自豪，他們又一個季度表現出色，並在多個方面創造了新的紀錄，包括：創紀錄的淨銷售額、創紀錄的非GAAP毛利率、創紀錄的非GAAP營業利潤率、創紀錄的非GAAP每股收益和創紀錄的調整後息的所有這些都是折銷前利潤，所有這些都是在創紀錄的實際利潤中取得的持續利潤。

The Board of Directors announced an increase in the dividend of 38.8% from the year ago quarter to $0.383 per share. During the last quarter, we purchased $273.9 million of our stock in the open market. We also paid out $195.9 million in dividends. Thus, the total cash return was $469.8 million. This amount was 62.5% of our actual adjusted free cash flow of $751.6 million during the December 2022 quarter. Our paydown of debt as well as record adjusted EBITDA drove down our net leverage at the end of March 2023 quarter to 1.45x from 1.56x at the end of December 2022. This also marks the pivotal point of our net leverage going below 1.5x, at which we further accelerate our cash return to the shareholders, which I will describe further. Ever since we achieved an investment-grade rating for our debt in November 2021 and pivoted to increasing our capital return to shareholders, we have returned $2.336 billion to shareholders through March 31, 2023, by a combination of dividends and share buybacks.

董事會宣布股息較去年同期成長38.8%，至每股0.383美元。上一季度，我們在公開市場回購了2.739億美元的股票。我們還派發了1.959億美元的股息。因此，總現金回報為4.698億美元。這筆金額佔2022年12月當季實際調整後自由現金流7.516億美元的62.5%。我們償還了債務，加上創紀錄的調整後息稅折舊攤銷前利潤（EBITDA），使我們的淨槓桿率從2022年12月底的1.56倍降至2023年3月底的1.45倍。這也標誌著我們淨槓桿率降至1.5倍以下的關鍵點，屆時我們將進一步加快向股東的現金回報，我將對此進行進一步闡述。自從我們在 2021 年 11 月獲得債務投資等級評級並轉向增加對股東的資本回報以來，截至 2023 年 3 月 31 日，我們已透過股利和股票回購等方式向股東返還了 23.36 億美元。

In the current June quarter, we will use the adjusted free cash flow from the March quarter to target the amount of cash returned to shareholders. The adjusted free cash flow excludes a net $79.5 million that we collected from our customers and paid to our suppliers for long-term supply assurance payment. These payments are refundable when purchase commitments are fulfilled. The adjusted free cash flow for the March quarter was $517.3 million. We plan to return 67.5% or $349.2 million of that amount to our shareholders with the dividend expected to be approximately $209 million and the stock buyback expected to be approximately $140.2 million.

在目前的六月季度，我們將使用三月季度的調整後自由現金流來確定返還股東的現金金額。調整後的自由現金流不包括我們從客戶收取並支付給供應商的7,950萬美元淨額，用於支付長期供應保證金。這些款項在採購承諾履行後可退還。三月季度的調整後自由現金流為5.173億美元。我們計劃將其中的67.5%（即3.492億美元）返還給股東，其中預計股息約為2.09億美元，股票回購預計約為1.402億美元。

The above numbers reflect a pivot in 1 area. We are increasing the total return to shareholders in 500 basis point increments per quarter instead of the 250 basis points we were increasing until now. Going forward, we plan to continue to increase free cash flow return to shareholders by 500 basis points every quarter until we reach 100% of our adjusted free cash flow returned to shareholders. That will take 7 more quarters and dividends over time, we expect will represent approximately 50% of our cash returns.

以上數字反映了一個領域的轉變。我們將以每季500個基點的增量增加股東總回報率，而不是先前的250個基點。展望未來，我們計劃繼續以每季500個基點的增量增加股東自由現金流回報率，直到達到調整後自由現金流100%的回報率。這將需要7個季度的時間，我們預計，隨著時間的推移，股息將占我們現金回報率的約50%。

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

接線員，請問您是否可以進行投票提問？

(Operator Instructions) The first question comes from Toshiya Hari from Goldman Sachs.

（操作員指示）第一個問題來自高盛的 Toshiya Hari。

I was hoping you could give a little bit more color and context in terms of the demand environment. Ganesh, you talked about experiencing push-outs from your customers an uptick in cancellations. But are these sort of events broad-based across geographies and end markets and device types? Or is it a little bit more concentrated? And then I have a follow-up.

我希望您能就需求環境提供更多細節和背景資訊。 Ganesh，您提到了客戶延遲付款導致取消訂單數量上升的情況。但這類事件是否廣泛存在於不同地域、不同終端市場和不同設備類型？還是更集中一些？然後我還有一個後續問題。

Generally speaking, I would say that our cross section of those requests from many geographies, many customers, many end markets. We also continue to have constrained products on which there are shortages that we're trying to accelerate product for. So it is not only 1 directional in which the demand reflects are coming in at.

總的來說，我想說，我們涵蓋了來自不同地區、不同客戶和不同終端市場的需求。我們也持續存在一些供應受限、供應短缺的產品，我們正在努力加快生產。所以，需求反映的方向並非只有一個。

Got it. And then as my follow-up, just your thoughts on trough gross margins. You provided a good context in terms of operating margins. I think you said well above 40% in a kind of a recessionary or contractionary environment. How should we think about gross margins off of these record levels as you work down inventory and presumably reduce utilization rates?

明白了。接下來我想問您對谷底毛利率的看法。您提供了一個很好的營業利潤率背景。我記得您說的是，在經濟衰退或收縮的環境下，毛利率遠高於40%。在您降低庫存並可能降低利用率的情況下，我們應該如何看待這些創紀錄水準的毛利率？

They're going to be (expletive) good. If you look at our history, you can get a pretty good idea of what the gross margin trough to peak or peak to trough look like. We are sitting at 48% operating margin, giving you 8 percentage points as a bottom end of where this is going to be an operating margin, I think you can draw the conclusion relatively easily.

他們的表現會（髒話）很棒。如果你回顧我們的歷史，就能很清楚地了解毛利率從低谷到高峰，或是從高峰到低谷的走勢。我們現在的營業利益率為48%，如果算上8個百分點的底線，我想你就能相對輕鬆地得出結論。

And we have some charts on our website to look at the last 15 years of history, and you can draw some conclusions from that.

我們的網站上有一些圖表來回顧過去 15 年的歷史，您可以從中得出一些結論。

The next question comes from Ambrish Srivastava from BMO Capital Markets.

下一個問題來自 BMO 資本市場的 Ambrish Srivastava。

Yes, that chart was very helpful, Eric. I had my -- for my first question. For the last few quarters, you have been guiding for the quarter out. And so I just wanted to make sure that you are not able to guide for September vis-a-vis if you just look at how the business has changed, and I'm just reading your comments, it sounds like that confidence is not bad this quarter?

是的，艾瑞克，那張圖表很有幫助。我的第一個問題是：過去幾個季度，您一直在為季度業績提供指引。所以我想確認一下，您是否能為9月的業績提供指引？如果您只看業務變化，我剛剛讀了您的評論，聽起來本季的信心還不錯？

So we have not adopted a consistent practice of providing more than 1 quarter guidance. At certain points of time, we have elected to provide more than 1 quarter guidance or directional guidance sometimes and this is when we believed it would help investors and analysts better frame our current quarter guidance. Having provided the extra quarter of directional guidance for 3 quarters in a row, it did not appear to add much value to analysts or investors who are more worried about the overall semiconductor industry cycle. And in fact, it seemed to elicit more skepticism in our ability to provide guidance and confidence in our understanding of the business. And therefore, we've decided to end the temporary practice we've started and revert to just providing 1 quarter's guidance.

因此，我們並沒有一貫地提供超過一個季度的業績指引。在某些時候，我們有時會選擇提供超過一個季度的業績指引或方向性指引，因為我們認為這將有助於投資者和分析師更好地制定我們當前的季度業績指引。在連續三個季度提供超過一個季度的方向性指引後，對於那些更擔心整體半導體產業週期的分析師或投資者來說，這似乎並沒有帶來太多價值。事實上，這似乎引發了人們對我們提供指引的能力以及我們對業務理解的信心的更多質疑。因此，我們決定終止這項臨時做法，恢復到僅提供單一季度的業績指引。

Makes sense, except it proved how wrong I was every quarter. I just had a question on the push out, Ganesh. How do they come back to the overall PSP? I'm assuming that this is not in the NCNR because those you have said in the past, you're not willing to negotiate or less willing to negotiate on? Is that the right way to think about it? The PSP has both NCNRs and non-NCNRs and a push out some more related to the non-NCNRs.

很有道理，只是它證明了我每季都錯得離譜。 Ganesh，我只是想問個關於推廣的問題。他們是怎麼回到整體PSP的？我假設這不在NCNR範圍內，因為你之前說過，你不願意或不太願意就這些進行談判？這樣想對嗎？ PSP既有NCNR，也有非NCNR，推廣內容與非NCNR更相關。

So maybe let me clarify. All PSP backlog is noncancelable, non-reschedulable. What I have said before is that we are not flexible in the noncancelable portion we are flexible on the non-reschedulable and that's where we're pushing up. So we are pushing our backlog, PSP or not into further quarters. And that's the way in which we support customers who -- whose business environment has changed and who have concern about their inventory level and in the process, hopefully, create less of an overhang that we will run into and more of a soft landing for our own business. But we are flexible on the reschedulability, just not on the non-cancelablity.

所以，讓我來澄清一下。所有PSP積壓訂單都是不可取消、不可重新安排的。我之前說過，我們對不可取消的部分不靈活，但對不可重新安排的部分靈活，這就是我們正在努力推進的。所以，無論是否是PSP，我們都在將積壓訂單推向下一個季度。這就是我們支持那些業務環境變化、擔心庫存水準的客戶的方式，希望在此過程中，我們能夠減少未來可能遇到的積壓，並實現我們業務的軟著陸。我們對可重新安排的部分很靈活，但在不可取消性方面則不然。

The next question comes from Vivek Arya from Bank of America.

下一個問題來自美國銀行的 Vivek Arya。

Ganesh, I wanted to revisit again this question of end market. So there's a perception that aerospace defense, medical parts of data center these markets are holding up better. So can you give us a sense that in the last 3 months, specifically which end markets or customers in which end market have asked you or you have asked them and they have agreed to pushing off some of their demand because I just want to make sure that are we -- when you say a soft landing, are we talking about revenues kind of floating at plus/minus the levels you're giving for June? Or is there some bigger drop off? And like having that end market view, I think we'll be better prepared to analyze, right, where -- how we should be thinking about September and December?

Ganesh，我想再討論一下終端市場的問題。人們普遍認為航空航太、國防、醫療以及資料中心等市場表現較好。您能否具體介紹一下，在過去三個月裡，具體是哪些終端市場或客戶向您提出過要求，或者您也提出過要求，而他們最終同意推遲部分需求？我想確認一下，您所說的軟著陸是指收入在您給出的6月份水平上下浮動嗎？還是說會有更大的下降？有了這樣的終端市場視角，我認為我們就能更好地分析9月和12月的趨勢。

In an absolute sense. There's no end market that I can say is the only one that has a problem or one that has no problem at all. It's all on a relative basis. And so the strength comes from those end markets where there's far better resilience, far better end market characteristics. Those are the ones we described as industrial, including aerospace and defense, automotive, parts of the data center that we have exposure to. And even if you look at industrial, I know different people have had different comments on it, but our exposure in industrial is dominated by aerospace and defense, renewable energy, energy efficiency, factory automation, medical, infrastructure. These are all the parts of industrial that dominate us.

絕對是如此。我無法斷言哪個終端市場是唯一有問題的，或者哪個市場完全沒有問題。一切都是相對的。因此，我們的優勢來自於那些韌性較強、終端市場特徵較佳的終端市場。這些市場我們稱之為工業市場，包括航空航太和國防、汽車以及我們涉足的資料中心部分。即使只專注於工業領域，我知道不同的人對此有不同的評價，但我們在工業領域的業務主要集中在航空航太和國防、再生能源、能源效率、工廠自動化、醫療和基礎設施。這些都是工業領域中佔據主導地位的領域。

Now within that, is there going to be somebody asking for a pushout or reschedule or a swap of certain products? Sure, there'll be some of that. But in the aggregate, that end market is doing extremely well compared to the rest of the end markets that perhaps are in consumer and phones and others, which we don't have much exposure to.

那麼，會有人要求延後、重新安排或更換某些產品嗎？當然會有人要求。但總體而言，與其他終端市場（例如消費者、手機和其他我們不太涉足的領域）相比，這個終端市場表現非常好。

Got it. And for my follow-up, I just actually had 2 quick clarifications, perhaps what I, I think just what is the right way to look at the other expense line? And any implication of kind of the rising rates on your debt servicing? And then OpEx, right, it's kind of -- our OpEx intensity is lower than your long-term model. So how are you planning to manage expenses as the business goes through this kind of slowdown in the near term?

明白了。接下來，我實際上想快速澄清兩點，我認為如何看待其他費用項目？利率上升對你們的債務償還有什麼影響？然後是營運支出，對吧？我們的營運支出強度低於你們的長期模型。那麼，在短期內業務放緩的情況下，你們打算如何管理支出？

Okay. So let me take the other expense piece first, which is obviously dominated by interest expense.

好的。那我先來談談其他支出，顯然利息支出占主導地位。

So yes, we are being impacted by the rising rate environment. We don't have much variable rate debt left on the balance sheet today. It's just our line of credit, which is about $100 million. But we do have bonds coming due in both June and September of this calendar year that the current intention is to refinance those or retire those using our line of credit and the interest rate currently on the variable line of credit, is higher than where those bonds are at. So we are going to be facing a higher rate interest expense each quarter as we go through this fiscal year. It's not like a stair step jump, but definitely the interest expense will be rising by several million dollars per quarter. I think the debt schedule that's on our website can help you model that because it shows the maturity dates and the interest rates on those various pieces of debt and our current borrowing rate on our line of credit is about 6.35%. So I think with that information, you can probably model that out appropriately.

是的，我們確實受到了利率上升環境的影響。目前，我們的資產負債表上沒有太多浮動利率債務，只有大約1億美元的信用額度。但我們確實有一些債券將於今年6月和9月到期，我們目前打算用信用額度為這些債券進行再融資或償還，而浮動信用額度的利率目前高於這些債券的利率。因此，在本財年期間，我們每季的利息支出都將上升。雖然不是階梯式成長，但利息支出肯定會每季增加數百萬美元。我認為我們網站上的債務明細表可以幫助您對此進行建模，因為它顯示了各種債務的到期日和利率，而我們目前的信用額度借款利率約為6.35%。所以，我認為有了這些訊息，您就可以正確地進行建模。

On the OpEx side, yes, we are below our long-term model. And obviously, Microchip has grown very fast over the last couple of years, and we've had a hard time keeping up with expenses and expenses as a percentage of net sales is dropping again this quarter at the midpoint of guidance, OpEx is rising in dollars again, but the percentage is coming down. And the large factor in there in terms of just our hiring activities is the variable compensation that we're paying to our employees. And as the environment changes from 1 of very high growth to 1 of more moderate growth, we will moderate those bonuses that are being paid to help us manage appropriately within our long-term model. I don't know if Ganesh wants to add anything more to that.

就營運支出而言，是的，我們低於長期模型。顯然，Microchip 在過去幾年中發展非常迅速，我們很難跟上支出的成長步伐，因為本季支出佔淨銷售額的百分比再次下降，處於指導價值的中點。營運支出以美元計算再次上升，但百分比正在下降。就我們的招募活動而言，其中一個重要因素是我們支付給員工的浮動薪酬。隨著環境從非常高的成長轉變為較溫和的成長，我們將調整支付的獎金，以幫助我們在長期模型內進行適當的管理。我不知道 Ganesh 是否想對此進行補充。

No. I think you stated it exactly so. And as we've always said, right, the operating expenses are an investment in the long-term growth profitability resilience of our results. And so those investments need to be made and to have years and years of return on those investments. And we are below our target, but as things settle out over time, that will creep up, but not at an accelerated rate.

不，我認為你說得完全正確。正如我們一直所說，營運費用是對我們業績長期成長和獲利韌性的投資。因此，這些投資必須持續進行，並且需要多年才能獲得回報。目前我們的目標還未實現，但隨著情況逐漸穩定，這個數字會逐漸上升，但不會加速。

The next question comes from Joshua Buchalter from Cowen & Company.

下一個問題來自 Cowen & Company 的 Joshua Buchalter。

I wanted to, I guess, ask about the pricing environment. So when you were discussing the PSP, you mentioned that backlog is noncancelable. But it sounds like it's flexible on the timeline. Can you talk about how the pricing discussions go, both within your PSP program and then outside it? And if there's been any change in that as you're going to -- you're starting to lower inventories a bit.

我想問一下定價環境。您在討論PSP的時候提到積壓訂單是不可取消的。但聽起來時間安排比較有彈性。您能談談PSP專案內部和外部的定價討論進度如何嗎？如果情況有任何變化，例如您開始稍微降低庫存。

So pricing is not any difference between PSP and non-PSP. So I'll give you a more general answer for just our overall methodology. Pricing for us is a strategic exercise. We provide products that are sole-sourced products, they are proprietary products and customers place their trust in us years before they go to production and then they're with us for many, many years to come. Traditionally, over the years, we have not had annual price reductions necessarily as a consistent part of what we do. In the last 2 years, we've had inflation at a much higher rate than what we would absorb with our improvements, and we did pass along price increases that would absorb the cost increases, keeping it margin neutral, and that has not changed and that we don't expect to change as we go forward. So pricing is stable and strategic and I think, in our thought process.

所以定價在PSP和非PSP之間並沒有什麼差別。所以我想就我們整體的方法論做一個更概括的回答。對我們來說，定價是一項策略性的工作。我們提供的產品都是獨家採購的，是專有產品，客戶在產品投入生產前就對我們充滿信任，並且會在未來很多年與我們合作。多年來，我們一直堅持每年降價，但這並非我們業務的必然組成部分。過去兩年，我們的通膨率遠高於我們透過改進所能吸收的水平，我們確實透過漲價來吸收成本上漲，從而保持利潤率中立。這一點至今沒有改變，我們預期未來也不會改變。所以，我認為，定價是穩定的、具有策略性的，並且在我們的思考過程中始終如此。

Got it. And I was hoping you could maybe help us understand the utilization rates a little bit better. Can you walk us through where things are at in your front end and whether, I guess, as you lower inventory, more of it is coming out of your internal facilities versus your foundry partners?

明白了。我希望您能幫助我們更了解一下利用率。能否介紹一下你們前端的情況？隨著庫存減少，我猜想是更多的庫存來自你們的內部設施，而不是來自代工夥伴？

Yes. So utilization in the factories has been high throughout the last year and that continues today. So we aren't facing underutilization charges or anything like that. We're still trying to get caught up on our backlog. So the factories are still running at a pretty high rate.

是的。所以工廠的利用率在去年一直很高，而且現在也維持了很高的水準。所以我們沒有面臨利用率不足之類的指控。我們仍在努力處理積壓訂單。所以工廠的運作率仍然很高。

And we don't expect the reduction of inventory days to affect what we're going to do in our factories in terms of underloading them. So the internal factories are running lower inventory and they will run constant through this cycle. And so there's no underabsorption issue to be concerned about.

我們預期庫存天數的減少不會影響我們工廠的減產措施。因此，內部工廠的庫存量較低，並且在整個週期中將保持穩定。因此，無需擔心吸收不足的問題。

The next question comes from Raji Gill from Needham & Company.

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

Congratulations on kind of solid results in a tough environment. Just in terms of the backlog. So in the past, you mentioned as the backlog come down through the year as lead times start to normalize, you'll start to see that -- you'll see more order volatility. And I think you're indicating that. But in the past, you mentioned that the delta between the backlog and the actual sales is still quite wide. And that backlog to sales delta could offset that potential order volatility. So I wanted to get a sense of what are your thoughts on the backlog to sales delta as we stand today?

祝賀您在艱難的環境下取得了不錯的業績。就積壓訂單而言。您之前提到，隨著交貨週期逐漸正常化，積壓訂單量在全年下降，您會看到訂單波動加劇。我想您也暗示了這一點。但您之前提到，積壓訂單量和實際銷售額之間的差距仍然很大。積壓訂單量與銷售額之間的差距可以抵消潛在的訂單波動。所以，我想了解一下，您對目前積壓訂單量與銷售額之間的差距有何看法？

So we still have significant backlog in excess of our sales. And we have backlog over multiple quarters, and we continue to get new bookings and backlog that layers in over time. The backlog is a function of also where customers view lead times are going to be headed, not so much what they're going to be consuming. And so as lead times slowly pull in, we do expect that customers will slow down some of what they want to do in terms of placing backlog.

因此，我們仍有大量積壓訂單，遠遠超過銷售額。這些積壓訂單已持續多個季度，而且我們仍在不斷獲得新的訂單，積壓訂單也會隨著時間的推移而累積。積壓訂單量也取決於顧客對交貨週期走向的看法，而非他們的實際消費量。因此，隨著交貨週期的緩慢縮短，我們預計客戶在積壓訂單方面會放慢一些速度。

Now any kind of inventory adjustment is not a permanent change in this industry. right? A year ago, we were -- we had a completely different view of where things were. And a year from now, we may have a completely different view of where things are likely to be. I think many customers are strategic in their thinking, have very high-value end products and what they're doing. And so they are more strategic in how they're thinking about their inventory over time and what backlog it will place. But we don't see any concern with the amount of backlog we need to be able to achieve the guidance that we have provided and the soft landing that we're trying to drive towards. Obviously, it still will require bookings to come in and that is all driven by how consumption continues.

現在，任何庫存調整都不會對這個行業造成永久性的改變，對吧？一年前，我們對當時情況的看法完全不同。一年後，我們對未來發展方向的看法也可能完全不同。我認為很多客戶都具有策略思維，擁有非常高價值的終端產品和業務。因此，他們在規劃長期庫存和積壓訂單方面也更具策略性。但我們並不擔心我們需要多少積壓訂單才能達到我們先前給出的預期目標，以及我們努力推動的軟著陸目標。顯然，這仍然需要訂單的增加，而這一切都取決於消費的持續成長。

And just my follow-up, what is your latest pulse on China regarding customer order patterns and channel inventory?

我的後續問題是，您對中國客戶訂單模式和通路庫存的最新動態有何看法？

So I would say China is stable. I don't see a major uptick from China post Chinese New Year and we will see how the rest of the year goes. I think there is opportunity for China to strengthen and contribute some tailwinds as we go through the rest of the year. But I can't say that we can see that today in what we see with the auto patterns.

所以我認為中國經濟是穩定的。我認為春節後中國經濟不會大幅上漲，我們拭目以待今年剩餘時間的趨勢。我認為中國經濟有機會在今年剩餘時間走強，並帶來一些推動力。但就目前汽車市場的表現來看，我還不能斷言我們就能看到這一點。

(Operator Instructions) The next question comes from Chris Danely from Citi.

（操作員指示）下一個問題來自花旗銀行的 Chris Danely。

Can you give us a sense of how much of the backlog right now, let's just say, for the next 12 months is PSP versus, I guess, the "can be canceled or can be pushed out"? Any kind of percentage there?

您能否告訴我們，目前積壓的訂單中，未來12個月的訂單中，有多少是PSP訂單，有多少是「可以取消或延期」的訂單？具體佔比是多少？

So the percent of backlog that is PSP has amazingly been consistent for the last, I would say, 9 to 12 months. So even as overall backlog has been slowly ticking down, right? PSP as a percent of total backlog, it's well over 50%, have stayed at that level. So it is resilient backlog. It is higher quality backlog than what we see.

所以，PSP 佔積壓訂單的百分比在過去 9 到 12 個月裡一直保持著驚人的穩定性。也就是說，即使整體積壓訂單一直在緩慢下降，對吧？ PSP 佔總積壓訂單的百分比遠超 50%，一直維持在這個水準。所以，這是有韌性的積壓訂單。它的品質比我們看到的要高。

Great. And have you had any customers try and renegotiate any of the PSP agreements either supply or price.

太好了。有沒有客戶嘗試重新協商PSP協議，無論是供應還是價格？

Not on price. I think there have been customers asking for help on PSP backlog that they wanted to have pushed out in time. And as I mentioned earlier in my prepared remarks, that is something that we have been actively doing to enable them to have that. It's a strange environment where I think in the shorter term, there are more people looking to push out because they're uncertain about their business. But we're also seeing cases where people who wanted to push out several months ago coming back in and wanting to pull it back in as well. So I think sometimes there is an overcorrection on both sides, and I would not be surprised as we go through the second half of this year that some of all the push outs that are happening today if the environment strengthens, it could just as well come right back out at that point in time. But in today's environment, it's very marquee.

不是價格問題。我認為有些客戶一直在尋求協助，解決PSP積壓問題，他們希望能及時解決。正如我之前在準備好的演講中提到的，我們一直在積極幫助他們解決積壓問題。這是一個奇怪的環境，我認為在短期內，會有更多人因為業務不確定而尋求延遲。但我們也看到一些案例，幾個月前就想推遲的人現在又回來了，並且想收回成本。所以我認為有時雙方都存在過度調整的情況。隨著今年下半年市場環境好轉，今天發生的一些延遲事件，我並不感到驚訝，它們也可能會在那個時候立即恢復。但在今天的環境下，這種情況非常引人注目。

The next question comes from Joe Moore from Morgan Stanley.

下一個問題來自摩根士丹利的喬·摩爾。

Thanks for all the color on the actions you guys are taking to match up customer inventories. Can you talk about what you think the state of those inventories are? And I know some of your competitors have talked about we're trying to prune some of the backlog, we're proactively making sure that our shipments are going into demand and not into inventory. Can you just talk about where you think you are relative to others? How careful are you trying to be in terms of preserving the customer inventory balances being where you got to be.

感謝您對您們為匹配客戶庫存所採取的措施的詳細說明。您能談談您認為這些庫存的狀況嗎？我知道你們的一些競爭對手提到，我們正在努力減少積壓訂單，我們正在積極確保我們的發貨滿足需求，而不是進入庫存。您能談談您認為您們相對於其他公司處於什麼位置嗎？在維持客戶庫存平衡方面，你們做得有多謹慎？

So our visibility into customer inventory is not there because they don't share that with us. We can infer their inventory by their request for pushouts or cancellations as the case might be. Where there is cancelable backlog or cancelable -- basically anytime there's -- or reschedule backlog, they can do that. Where it is non-reschedulable and noncancelable and they ask for help, then we get involved in it. But it's hard for us to know where customer is and their inventory correction position. We can see that in distribution. And there, we get a weekly report, it tells us by distributor in different parts of the world where is that?

因此，我們無法了解客戶庫存，因為他們不會與我們分享庫存。我們可以根據他們提出的延期或取消訂單請求來推斷他們的庫存情況。如果有可取消的積壓訂單，或基本上任何時候都可以取消或重新安排積壓訂單，他們可以處理。如果積壓訂單既不可重新安排也不可取消，而且他們尋求幫助，我們就會介入。但我們很難知道客戶在哪裡以及他們的庫存調整。我們可以在分銷管道看到這一點。在那裡，我們會收到一份每週報告，它將告訴我們世界各地分銷商的庫存情況。

As Eric mentioned, distribution days of inventory went up by 2 days from 22 to 24 days. Still well in control, below where it used to be historically and where is at. And so that's about as much color as we can give you on kind of customer inventory or end customer inventory.

正如Eric所提到的，庫存配送天數增加了2天，從22天增加到24天。仍然控制得很好，低於歷史水平和目前的水平。關於客戶庫存或最終客戶庫存，我們能提供的資訊大概就這些了。

Okay. That makes sense. And I guess as you've described the PSP over the last couple of quarters, you're now kind of taking a little bit more of an approach of helping the customers where they want to reduce it. Is that because there's just more people asking now as you're trying to match it up? Or were they asking 2 quarters ago, but it wasn't broad enough. I'm just -- there's a perception, I guess, that because of PSP, you may have more inventory at customers than peers. And I'm just trying to see if your behavior is really that much different than anyone else.

好的。這很有道理。我想，正如您在過去幾季所描述的PSP，您現在採取了一種更傾向於幫助客戶降低庫存的方式。這是因為現在問的人越來越多，而您正試圖匹配庫存？還是兩個季度前他們就問過，但範圍不夠廣？我猜，人們可能認為由於PSP，您在客戶處的庫存可能比同行更多。我只是想看看您的行為是否真的與其他人有很大不同。

So let me clarify. I don't know where that perception was set, maybe what we said in the past. We have been pushing out orders from customers, PSP customers for multiple quarters, right? I mean we're in this to be responsive to the market, but we also want to make sure that as noncancelable orders get placed, there is a symmetric responsibility from us and from our customers, and that's what creates some resistance to placing orders that they shouldn't be placing or that are speculative and where they're at. So we've done this multiple quarters. This is not the first quarter we're doing it. And it is in response to where markets and customers and specific situations are at. And we will continue to do it as needed, including in this quarter.

所以讓我澄清一下。我不知道這種看法是從哪裡來的，也許是我們過去說過的。我們已經連續幾季推遲客戶（PSP客戶）的訂單了，對吧？我的意思是，我們這樣做是為了回應市場，但我們也希望確保，在下達不可取消的訂單時，我們和客戶承擔相同的責任，這讓他們對下達不該下的訂單或投機性訂單產生了一些阻力。所以，我們已經這樣做了好幾個季度。這不是我們第一次這樣做。這是根據市場、客戶和具體情況做出的回應。我們會根據需要繼續這樣做，包括在本季。

I just want to add 1 point. This is Steve. I think investors and analysts failed to appreciate that when a customer is placing a year worth of orders, which by contract are noncancelable and nonreschedulable. It goes through a level of review at the customer at much higher level than just only the purchasing person, and the resulting backlog that is placed on Microchip is a much higher quality. So therefore, even though we have taken some adjustments in rescheduling some of the PSP backlog, the fundamental fact is that, that backlog is a very high quality relative to a similar backlog at any other competitor.

我只想補充一點。我是史蒂夫。我認為投資者和分析師未能意識到，當客戶下達一年的訂單時，根據合同，這些訂單是不可取消和不可重新安排的。客戶會比採購人員的審核等級高得多，因此微晶片的積壓訂單品質要高得多。因此，即使我們在重新安排部分PSP積壓訂單方面做出了一些調整，但基本事實是，與其他競爭對手的類似積壓訂單相比，我們的積壓訂單品質非常高。

The next question comes from Harlan Sur from JPMorgan.

下一個問題來自摩根大通的 Harlan Sur。

Was the unsupported backlog to actual revenue shift still above 1 in the March quarter? And where do you anticipate that ratio to be this quarter?

3月季度，無支援積壓訂單與實際收入的比率是否仍高於1？您預計本季該比率會達到多少？

I believe the unsupported backlog was greater than the amount that we shipped in the quarter, but I think it's becoming a less relevant indicator at this point, right? We are unsupportive means it's on our backlog, it is noncancelable. But we are helping -- and nonreschedulable, but we are actively allowing customers to reschedule it out in time. And so we don't pay that much attention to it today as we did a year ago. Today, it's really making sure that we are shipping to customers who need the product. We're helping customers who are asking for help and working towards setting this thing up to not have an overhang to the best extent that we can.

我相信本季未支援的積壓訂單量比我們實際出貨量還要大，但我認為現在這個指標已經不那麼重要了，對吧？ 「未提供支援」表示訂單在我們的積壓訂單中，無法取消。但我們正在提供幫助，而且無法重新安排，但我們會積極地允許客戶及時重新安排。所以，我們現在不像一年前那樣關注這個問題。現在，我們真正需要做的是確保我們能夠將產品運送給需要的客戶。我們正在幫助那些尋求幫助的客戶，並盡最大努力避免積壓問題。

Okay. Perfect. And then your data center products are quite applications specifically, right? So a bit easier to track rate storage controllers, enterprise key controllers, Ethernet PHy and so on, right? The demand dynamics in cloud and more so in Enterprise data center have clearly weakened. I know you guys have said some products are strong, some products are still weak, but is the aggregate data center franchise holding up on a quarter-over-quarter and year-over-year basis?

好的。完美。那麼你們的資料中心產品是專門針對應用的，對吧？這樣更容易追蹤儲存控制器、企業金鑰控制器、乙太網路實體層等等的速率，對吧？雲端運算以及企業資料中心的需求動態明顯減弱了。我知道你們說過有些產品表現強勁，有些產品仍然疲軟，但整體資料中心特許經營權的季度環比和年度環比表現是否保持穩定？

Absolutely. And I would say we are getting tailwinds from the AI servers and we are represented in those. Many of our PCI switches are an integral part of that. The storage in general, is stable, but it has experienced substantial growth over the last year. And the data center is holding up. Obviously, not as strong today as it was from a year ago growth but still stable.

絕對是如此。我想說，我們正從人工智慧伺服器中受益，我們在其中佔有一席之地。我們的許多 PCI 交換器都是其中不可或缺的一部分。儲存業務整體穩定，但在過去一年中經歷了大幅成長。資料中心業務也保持穩定。當然，今天的成長不如一年前那麼強勁，但仍然穩定。

The next question comes from Tore Svanberg from Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

I had a follow-up on the rescheduling of backlog. I mean the semi industry has obviously been struggling for a while now. So would you say that this more recent phenomenon is due to some of the financial stresses that's going on? And the reason I'm asking that is because I'm just wondering if people are pushing out because they feel a little bit uncomfortable with the current financial environment and as soon as there's some stabilization, perhaps those pushouts will turn into pull-in. So I'm just hoping you could give us your view there.

我對積壓訂單的重新安排進行了跟進。我的意思是，半導體產業顯然已經苦苦掙扎了一段時間。那麼，您是否認為這種近期的現像是由於正在發生的一些財務壓力所造成的？我之所以問這個問題，是因為我想知道，人們是否因為對當前的金融環境感到有些不安而選擇退出，而一旦情況穩定下來，也許這種退出會變成吸引。所以我只是希望您能就此發表您的看法。

I'm sure there's a portion of that, that falls into that. But you've also got to think about the environment is more stressful for our customers today with where inflation is at, where interest rate is at, what the economy in general is doing in terms of relative growth rate from a year ago. And so they placed orders with the best intention, with the best information that they had back in time. And as the environment has changed, are, in some cases, seeing their demand picture different and therefore, asking for our supply picture to adapt to where they're at.

我確信其中有一部分原因，也與此有關。但你也必須考慮到，如今的通貨膨脹、利率以及總體經濟與去年同期的相對成長率對我們的客戶來說壓力更大。因此，他們下訂單時懷著良好的意願，並充分利用了他們過去掌握的最佳資訊。隨著環境的變化，在某些情況下，他們看到的需求情況發生了變化，因此要求我們的供應情況也隨之調整。

I don't believe this is a permanent change. I think these things go in cycles. And I do think as the economy at some point reverses and gathers more strength as the macro gathers more strength, many of these will come right back up. And I do expect if history is to be repeated, we will, at some point, go back into people asking for expedites on things that maybe 3 months ago, 6 months ago, they were asking for pushouts. It's the nature of the beast and people have the best visibility at any point in time. But as that visibility pushes out their need or pulls in their need, they will signal to us what we have to do to help them.

我不認為這是一個永久性的改變。我認為這些事情會循環往復。我確實認為，隨著經濟在某個時刻出現逆轉，隨著宏觀經濟的增強，很多事情會立即回升。我確實預計，如果歷史重演，我們最終會再次看到人們要求加快處理一些事情，而這些事情可能在三個月前或六個月前是要求延期的。這是自然規律，人們在任何時間點都有最清晰的視野。但當這種視野推動或拉動他們的需求時，他們就會向我們發出信號，告訴我們該做些什麼來幫助他們。

Very good. And as my follow-up is one for Steve. And Steve, congratulations on your new book. What was the reason behind the increase of the returns from 250 to 500 bps a quarter. I guess my question is more on the timing of it. I mean you just feel more confident about the profitability of the company during the soft landing period? If you could just elaborate on the timing, that would be great.

非常好。我的後續問題是問史蒂夫的。史蒂夫，祝賀你的新書問世。季度報酬率從250個基點提高到500個基點的原因是什麼？我想我的問題更多的是關於時機。我的意思是，你只是對公司在軟著陸期間的獲利能力更有信心嗎？如果你能詳細說明一下時機，那就太好了。

So the reason in going from 250 bps increase per quarter to 500 was clearly hitting a target of a total leverage going below 1.5x. So this is what we have said for a long time that by paying down the debt every quarter, we're going to bring the leverage below 1.5x. And when that happens, then we will further accelerate the return to the shareholders. So that happened last quarter where the leverage was 1.45. So therefore, we are accelerating the total cash return to shareholders from 62.5% last quarter to 67.5% this quarter, a difference of 500 bps. And the following quarter will be 72.5% then 77.5% and so on, will take about 7 quarters to get to 100.

因此，將每季的升息幅度從250個基點提高到500個基點，顯然是為了實現將總槓桿率降至1.5倍以下的目標。我們長期以來一直強調，透過每季償還債務，我們將把槓桿率降至1.5倍以下。一旦達到這一目標，我們將進一步加快股東回報。上個季度的槓桿率為1.45，我們達成了這個目標。因此，我們將股東總現金報酬率從上季的62.5%提高到本季的67.5%，降幅為500個基點。下一季將是72.5%，然後是77.5%，以此類推，大約需要7個季度才能達到100%。

And over that 7 quarters, we will continue to use the excess cash to pay down debt and bring leverage down further. We think it is appropriate in a difficult interest rate environment.

在接下來的七個季度裡，我們將繼續利用剩餘現金償還債務，並進一步降低槓桿率。我們認為，在當前艱難的利率環境下，此舉是合理的。

The next question comes from Vijay Rakesh from Mizuho.

下一個問題來自瑞穗的 Vijay Rakesh。

I was just wondering if you could give us some color on what ASP trends look like exiting '22 and how they are looking this year? And then I have a follow-up.

我只是想知道，您能否為我們介紹一下2022年之後的平均售價趨勢以及今年的趨勢？然後我還有一個後續問題。

To the earlier question, ASP trends tend to be reasonably stable. We have passed along price increases to a lesser extent than what we have, I don't know, always absorbed from a cost standpoint, trying to be margin neutral to make sure that between the improvements we're making in our own business, and the pricing from a market standpoint being reasonable to the customer. So ASPs today, if you were to compare them with a year ago are slightly higher, but there are stable trends on the ASP.

關於先前的問題，平均售價趨勢趨於穩定。我們轉嫁的價格上漲幅度比我們自己（我不知道）承受的幅度要小，我們總是從成本的角度來吸收，努力保持利潤率中性，以確保我們自身業務的改進與市場定價之間保持合理的平衡，讓客戶滿意。所以，如果與一年前相比，今天的平均售價略高，但整體趨勢穩定。

And some of those trends is not necessarily price increase driven. It's introducing new proprietary more complex products that bring more value to our customers.

其中一些趨勢不一定是由價格上漲所驅動的，而是推出新的、更複雜的專有產品，為我們的客戶帶來更多價值。

Got it. And then just addressing the comment you had in your deck. Just wondering what percentage of customers you're seeing kind of redeploy -- look to redeploy backlog or push out cancel. What are you seeing there? If you could give us some idea on if it's like any particular segment that you're seeing it. That's it.

明白了。然後我想談談你在演講稿中提到的問題。我想知道有多少比例的客戶正在重新部署——考慮重新部署積壓訂單或推遲取消訂單。你看到了什麼？能否請你告訴我們，這是否是你所看到的某個特定細分市場的情況？就是這樣。

It's next to impossible to give you a number because we serve about 125,000 customers, about 115,000 of them are indirect through our distributor channels. So we don't really hear customer by customer where it's at. I would say that it's not the majority of the business that we're doing. It's specific customers and specific markets in any given day, that's there. So there's not a wholesale. I want to push everything out that's out there.

幾乎不可能給出一個數字，因為我們服務的客戶大約有12.5萬，其中約11.5萬是透過我們的分銷管道間接獲得的。所以我們實際上無法了解每個客戶的具體情況。我想說，這不是我們業務的主體。我們每天都會針對特定的客戶和特定的市場。所以，我們不是批發商。我想把所有現有的產品都推廣出去。

We'll move on to our next question, which is coming from the line of Chris Danely with Citi.

我們繼續討論下一個問題，這個問題來自花旗銀行的 Chris Danely。

I just have 2 quickies and then I guess I'll let everybody go back to working on the notes. Is there any way you could tell like how much of this changes in backlog is too much inventory versus weaker demand? Is it 50-50, a little more on the demand side, a little more on the inventory side. Any color, any clarity there?

我只想快速問兩個問題，然後大家就可以回去繼續做筆記了。有什麼方法可以判斷積壓訂單的變化有多少是庫存過剩還是需求疲軟造成的嗎？是各佔一半嗎？需求側多一點，庫存側多一點。有什麼具體解釋嗎？

Those 2 are interconnected, right? It's not that -- it's only one or the other. So weaker demand results in more inventory, which last some longer or stronger demand results in needing to expedite that as well. So it's hard to parse those out. There's some of both that's in there. And in many of these -- our customers who are also facing uncertainty perhaps. So it may not just be demand alone, but the environment that they're in, and they are trying to decide how should they navigate their environment. And so what we see in the end is the aggregate feedback or request that they provide us. And with all of that, we're able to show continuing growth into this quarter, into the June quarter.

這兩者是相互關聯的，對吧？並非如此——只是其中之一。需求疲軟會導致庫存增加，庫存會持續更長時間；而需求強勁也會導致需要加快生產速度。所以很難分析這些因素。兩者都有影響。其中許多客戶可能也面臨不確定性。所以，可能不只是需求本身，還有他們所處的環境，他們正在努力決定如何應對環境。最終我們看到的是他們提供給我們的整體回饋或要求。正是基於所有這些因素，我們才能夠在本季度，也就是第二季度，持續成長。

As it stands right now, we believe it is highly unlikely at the September quarter is going to have a sequential down quarter and that's a basis of all of our integrated information from customers on what they're seeing on internal data that we see in all of our indicators, bookings, backlog, expedite request, pushout requests, all the external data that we track, GDP, PMI, consumer confidence, inflation, et cetera. And so that's what gives us the confidence in our business.

就目前情況而言，我們認為9月份季度環比下滑的可能性極小，這是基於我們從客戶那裡獲取的所有綜合資訊得出的結論。這些資訊來自我們所有指標中的內部數據，包括訂單、積壓訂單、加急請求、延期請求，以及我們追蹤的所有外部數據，例如GDP、PMI、消費者信心、通膨等等。這讓我們對業務充滿信心。

Thank you. There are no further questions at this time. I would like to turn the call back to Ganesh Moorthy for closing remarks. Thank you.

謝謝。目前沒有其他問題了。我想請Ganesh Moorthy做最後發言。謝謝。

I want to thank everybody for your time and questions this afternoon. We will be seeing many of you on the road as we come out to different conferences, et cetera. And thank you again.

感謝大家今天下午抽空回答問題。我們還會參加各種會議等等，路上還會見到你們中的許多人。再次感謝大家。

Thank you very much. And ladies and gentlemen, that does conclude today's teleconference. Thank you very much for joining us. You may now disconnect your lines.

非常感謝。女士們，先生們，今天的電話會議到此結束。非常感謝各位的參與。現在您可以掛斷電話了。