微晶片科技 (MCHP) 2024 Q4 法說會逐字稿

Greetings and welcome to the Microchip Q4 and Fiscal Year 2024 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 Microchip 第四季和 2024 財年財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Eric Bjornholt, Senior Vice President and CFO. Thank you. Eric, you may begin.

現在我很高興向您介紹主持人，高級副總裁兼財務長 Eric Bjornholt。謝謝。艾瑞克，你可以開始了。

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

謝謝大家，大家下午好。在本次電話會議期間，我們將對未來事件或公司未來財務表現做出預測和其他前瞻性陳述。我們希望提醒您，此類陳述僅為預測，實際事件或結果可能會有重大差異。我們建議您參閱今天的新聞稿以及我們最近向 SEC 提交的文件，其中確定了可能影響 Microchip 業務和營運績效的重要風險因素。

In attendance with me today are Ganesh Moorthy, Microchip's President and CEO; Steve Sanghi, Microchip's Executive Chair; Rich Simoncic, Microchip's COO; and Sajid Daudi, Microchip's Head of Investor Relations. I will comment on our fourth quarter and full fiscal year 2024 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.

今天與我一起出席的有 Microchip 總裁兼執行長 Ganesh Moorthy； Steve Sanghi，Microchip 執行主席； Rich Simoncic，Microchip 營運長；以及 Microchip 投資者關係主管 Sajid Daudi。我將評論我們第四季度和2024 年整個財年的財務業績，Ganesh 隨後將對我們的業績發表評論，並討論當前的商業環境以及我們的指導，史蒂夫將提供我們現金回報策略的最新信息。然後我們將可以回答具體的投資者和分析師的問題。

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. We have also posted a summary of our outstanding debt and our leverage metrics on our website.

我們在新聞稿和本次電話會議中納入了有關各種公認會計原則和非公認會計原則措施的資訊。我們已在我們網站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，並在我們的收益新聞稿中包含了調節信息，我們相信您在比較我們的GAAP 和非GAAP 時會發現這些資訊很有用。我們也在我們的網站上發布了未償債務和槓桿指標的摘要。

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 reconciliations on our website.

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。除了淨銷售額之外，我將在非公認會計原則的基礎上提及這些結果，該結果基於我們的收購活動影響之前的費用、基於股份的薪酬以及我們的收益新聞稿和財務報告中所述的某些其他調整。

Net sales in the March quarter were $1.326 billion, which was down 24.9% 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 60.3%, including capacity underutilization charges of $32 million, operating expenses were at 27.4% and operating income was 32.9%. Although our operating income was better than the midpoint of our guidance, our cash taxes came in higher than forecasted. Non-GAAP net income was $310.3 million, and non-GAAP earnings per diluted share was $0.57 and at the midpoint of our guidance.

三月季度的淨銷售額為 13.26 億美元，季減 24.9%。我們已在網站上發布了按產品線和地理位置劃分的淨銷售額摘要，供您參考。以非公認會計準則計算，毛利率為 60.3%，其中包括 3,200 萬美元的產能未充分利用費用，營運費用為 27.4%，營運收入為 32.9%。儘管我們的營業收入優於我們指導的中點，但我們的現金稅高於預期。非 GAAP 淨利潤為 3.103 億美元，非 GAAP 攤薄每股收益為 0.57 美元，處於我們指引的中點。

On a GAAP basis, in the March quarter, gross margins were 59.6%. Total operating expenses were $536.4 million and included acquisition intangible amortization of $151.2 million, special income of $16.9 million, which was primarily driven by the settlement of an unclaimed property audit at a value that was less than what we had accrued for. Share-based compensation of $37.4 million and $1.1 million of other expenses. GAAP net income was $154.7 million, resulting in $0.28 in diluted earnings per share.

以 GAAP 計算，第三季毛利率為 59.6%。總營運費用為 5.364 億美元，包括收購無形攤銷 1.512 億美元、特殊收入 1,690 萬美元，這主要是由於無人認領財產審計的結算價值低於我們應計的價值。股份報酬為 3,740 萬美元，其他費用為 110 萬美元。 GAAP 淨利潤為 1.547 億美元，稀釋後每股收益為 0.28 美元。

For fiscal 2024, net sales were $7.634 billion and were down 9.5% from net sales in fiscal year 2023. On a non-GAAP basis, gross margins were 65.8%, operating expenses were 22% of sales and operating income was 43.9% of sales. Non-GAAP net income was $2.698 billion, and EPS was $4.92 per diluted share.

2024 財年的淨銷售額為76.34 億美元，比2023 財年的淨銷售額下降9.5%。額的43.9% 。非 GAAP 淨利為 26.98 億美元，攤薄後每股收益為 4.92 美元。

On a GAAP basis, gross margins were 65.4%, operating expenses were 31.8% of sales and operating income was 33.7% of sales. Net income was $1.907 billion, EPS was $3.48 per diluted share.

以公認會計原則計算，毛利率為 65.4%，營運費用佔銷售額的 31.8%，營運收入佔銷售額的 33.7%。淨利潤為 19.07 億美元，稀釋後每股收益為 3.48 美元。

Our non-GAAP cash tax rate was 18.8% in the March quarter and 14.5% for fiscal year 2024. Our non-GAAP tax rate for fiscal year 2025 is expected to be about 13%, which is exclusive of the transition tax and any tax audit settlements related to taxes accrued in prior fiscal years. 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.

我們的非 GAAP 現金稅率在 3 月季度為 18.8%，2024 財年為 14.5%。 我們 2025 財年的非 GAAP 稅率預計約為 13%，不包括過渡稅和任何稅項與上一財政年度應計稅金相關的審計結算。我們仍希望要求公司將研發費用資本化的稅收規則將被推遲或廢除。如果這種情況發生，我們預計未來各期間 Microchip 的非 GAAP 稅率將有約 200 個基點的有利調整。

Our inventory balance at March 31, 2024, was $1.316 billion. We had 224 days of inventory at the end of the March quarter, which was up 39 days from the prior quarter's level and in line with our expectations given the difficult revenue quarter we experienced. At the midpoint of our June 2024 quarter guidance, we would expect inventory dollars to be up modestly and days of inventory to increase based on the lower cost of goods sold driven by the depressed revenue levels at which we believe is the low point of the current cycle for Microchip.

截至 2024 年 3 月 31 日，我們的庫存餘額為 13.16 億美元。截至 3 月季度末，我們的庫存天數為 224 天，比上一季的水準增加了 39 天，考慮到我們經歷了艱難的收入季度，這符合我們的預期。在我們 2024 年 6 月季度指導的中點，我們預計庫存金額將小幅上升，庫存天數將增加，因為收入水平低迷導致銷售商品成本降低，我們認為這是當前的低點Microchip 的周期。

We also continue to invest in 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 14 days of inventory at the end of March. Inventory at our distributors in the March quarter were at 41 days, which was up 4 days from the prior quarter's level. Distribution took down their inventory in the March quarter as distribution sell-through was about $125 million higher than distribution sell in. The inventory days increased as this is reflective of the much lower cost of sales for Microchip in the March quarter that is used in this calculation.

我們也繼續投資建立長壽命、高利潤產品的庫存，這些產品的製造能力已被我們的供應鏈合作夥伴淘汰，而這些最後一次購買代表了 3 月底 14 天的庫存。 3 月季度我們經銷商的庫存為 41 天，比上一季的水準增加了 4 天。分銷商在3 月季度減少了庫存，因為分銷商的銷售額比分銷商的銷售額高出約1.25 億美元。多。

Our cash flow from operating activities was $430 million in the March quarter. Our adjusted free cash flow was $389.9 million in the March quarter. As of March 31, our consolidated cash and total investment position was $319.7 million. Our total debt increased by $312 million in the March quarter, our net debt increased by $273.3 million.

三月季度我們的營運活動現金流量為 4.3 億美元。三月季度調整後的自由現金流為 3.899 億美元。截至 3 月 31 日，我們的綜合現金和總投資部位為 3.197 億美元。三月季度我們的總債務增加了 3.12 億美元，淨債務增加了 2.733 億美元。

Our adjusted EBITDA in the March quarter was $503 million and 37.9% of sales. Our trailing 12-month adjusted EBITDA was $3.623 billion, and our net debt to adjusted EBITDA was 1.57 at March 31, 2024, up from 1.45 at March 31, 2023. Capital expenditures were $40.1 million in the March quarter and $285.1 million for fiscal year 2024. Our expectation for capital expenditures for fiscal year 2025 is about $175 million. Depreciation expense in the March quarter was $45.8 million.

三月季度調整後的 EBITDA 為 5.03 億美元，佔銷售額的 37.9%。我們過去12 個月的調整後EBITDA 為36.23 億美元，截至2024 年3 月31 日，我們的淨債務與調整後EBITDA 比率為1.57，高於2023 年3 月31 日的1.45。資本支出為4,010 萬美元，本財年的資本支出為2.851 億美元2024 年。三月季度的折舊費用為 4,580 萬美元。

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

現在我將把它交給 Ganesh，讓他對 3 月季度的業務表現以及我們對 6 月季度的指導做出評論。加內什？

Thank you, Eric, and good afternoon everyone. Our March quarter results were consistent with our guidance, with net sales down 24.9% sequentially and down 40.6% from the year ago quarter as we endured through a major inventory correction. Non-GAAP gross margin came in as expected at 60.3% and non-GAAP operating margin was better than expected, 32.9% due to the strong expense control programs we had in place. However, as Eric mentioned, our tax rate was higher than expected, and as a result, our consolidated non-GAAP diluted EPS only met expectations at $0.57 per share.

謝謝你，埃里克，大家下午好。我們 3 月季度的業績與我們的指導一致，淨銷售額環比下降 24.9%，比去年同期下降 40.6%，因為我們經歷了重大庫存調整。由於我們實施了強有力的費用控制計劃，非 GAAP 毛利率達到預期的 60.3%，非 GAAP 營業利潤率好於預期，達到 32.9%。然而，正如艾瑞克所提到的，我們的稅率高於預期，因此，我們的合併非 GAAP 攤薄後每股盈餘僅達到預期 0.57 美元。

Our revenue decline resulted in March quarter EBITDA dropping. And as a result, our net leverage ratio rose to 1.57x. We expect our net leverage to rise modestly for a few quarters as trailing 12-month adjusted EBITDA drops when replacing stronger prior year quarters with weaker current year quarters. However, our cash generation capability remains strong, and we are committed to our capital return plan.

我們的營收下降導致 3 月季度 EBITDA 下降。結果，我們的淨槓桿率升至 1.57 倍。我們預計我們的淨槓桿率將在幾個季度內小幅上升，因為當用較弱的本年季度取代較強勁的去年季度時，過去 12 個月調整後的 EBITDA 會下降。然而，我們的現金產生能力仍然強勁，並且我們致力於我們的資本回報計劃。

Our capital return to shareholders in the June quarter will increase to 87.5% of our March quarter adjusted free cash flow as we continue on our path to return 100% of our adjusted free cash flow to shareholders by the March quarter of calendar year 2025.

隨著我們繼續努力在2025 年3 月季度將100% 的調整後自由現金流返還給股東，我們在6 月份季度向股東返還的資本回報率將增至3 月份季度調整後自由現金流的87.5% 。

Reflecting on our fiscal year '24 results, it was a roller coaster year with a positive start that was followed by a major inventory correction. As compared to fiscal year '23, revenue declined 9.5% to $7.6 billion. Non-GAAP operating margin was resilient at 43.9% as we took the actions required to respond to the major inventory correction. Capital return to shareholders through a combination of dividends and share buybacks in fiscal '24 was $1.89 billion, representing a 15.4% growth as compared to fiscal year '23.

回顧我們 24 財年的業績，這是過山車般的一年，開局良好，隨後出現了重大庫存調整。與 23 財年相比，營收下降 9.5% 至 76 億美元。由於我們採取了應對重大庫存調整所需的行動，非公認會計準則營業利潤率維持在 43.9%。 24 財年透過股利和股票回購相結合的方式為股東帶來的資本回報為 18.9 億美元，與 23 財年相比成長了 15.4%。

My thanks to our worldwide team for their support, hard work and diligence as we navigated a difficult environment and focus on actions that we believe position us well to thrive in the long term.

我感謝我們的全球團隊在我們度過困難的環境時所給予的支持、辛勤工作和勤奮，並專注於我們相信使我們能夠長期發展的行動。

Taking a look at our fiscal year '24 net sales from a product line perspective, our Mixed-Signal Microcontroller net sales were down 10.2% and represented 56% of Microchip's overall revenue. Our Analog net sales were down 15.2% and represented 26.4% of Microchip's overall revenue. While we don't normally break out our FPGA product line results, it is noteworthy that our fiscal year '24 FPGA revenue exceeded $670 million and set another record. FPGA revenue grew over 22% as compared to fiscal '23 and delivered operating margins of north of corporate average. We deliver market-leading mid-range FPGA solutions with best-in-class low power, reliability and security and are especially well suited for the fast emerging opportunities around artificial intelligence at the edge. Our overall FPGA design win momentum is strong across multiple end markets.

從產品線的角度來看我們 24 財年的淨銷售額，我們的混合訊號微控制器淨銷售額下降了 10.2%，佔 Microchip 總營收的 56%。我們的模擬淨銷售額下降了 15.2%，佔 Microchip 總收入的 26.4%。雖然我們通常不會公佈我們的 FPGA 產品線業績，但值得注意的是，我們 '24 財年的 FPGA 收入超過了 6.7 億美元，創下了另一項記錄。與 23 財年相比，FPGA 營收成長了 22% 以上，營業利益率高於公司平均。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，特別適合抓住邊緣人工智慧快速出現的機會。我們的整體 FPGA 設計在多個終端市場的獲勝勢頭強勁。

A few other product line notes are significant. Early in April, we closed our acquisition of Seoul, Korea-based VSI and ADAS and digital cockpit connectivity pioneer to extend our automotive networking market leadership. This acquisition adds automotive SerDes Alliance Motion Link technology, otherwise known as ASA-ML to Microchip's broad Ethernet and PCIe automotive networking portfolio to enable next-generation software-defined vehicles.

其他一些產品線註釋也很重要。 4 月初，我們完成了對韓國首爾 VSI 和 ADAS 以及數位座艙連接先驅的收購，以擴大我們在汽車網路市場的領先地位。此次收購將汽車 SerDes Alliance Motion Link 技術（也稱為 ASA-ML）添加到 Microchip 廣泛的乙太網路和 PCIe 汽車網路產品組合中，以支援下一代軟體定義汽車。

With the anticipated increase in the adoption of advanced camera-based driver assistance systems, in-cabin monitoring, safety and convenience features and multiscreen digital cockpits for next-generation software-defined vehicles, there is a growing requirement for a more highly asymmetric raw data and video links and higher bandwidth with the ASA Motion Link open-standard supports.

隨著下一代軟體定義車輛採用先進的基於攝像頭的駕駛員輔助系統、車內監控、安全和便利功能以及多屏數字駕駛艙的預期增加，對更加高度不對稱的原始數據的需求日益增長以及視頻連結和更高的頻寬，並支援ASA Motion Link 開放標準。

Also last month, we closed our acquisition of Neuronix AI Labs whose innovative software technology enhances AI-enabled intelligent edge solutions and increases neural networking capabilities. This technology expands our capabilities for power-efficient AI-enabled edge solutions deployed in FPGAs. Neuronix AI Labs provides neural network sparsity optimization technology that enables the reduction in power, size and calculation for tasks such as image classification, object detection and semantic segmentation while maintaining high accuracy.

同樣在上個月，我們完成了對 Neuronix AI Labs 的收購，該實驗室的創新軟體技術增強了支援 AI 的智慧邊緣解決方案並增強了神經網路功能。這項技術擴展了我們在 FPGA 中部署的高能源效率 AI 邊緣解決方案的能力。 Neuronix AI Labs 提供神經網路稀疏優化技術，能夠降低影像分類、物件偵測和語意分割等任務的功耗、尺寸和運算量，同時保持高精度。

Finally, in July, we expect to announce our entry into the 64-bit embedded microprocessor market with a suite of products, development tools and other support requirements to address high-performance embedded processing applications including AI-enabled edge solutions. This will extend our strong 32-bit embedded microprocessor portfolio to higher performance and increased capabilities while preserving Microchip's historically strong ecosystem of leading development tools to make adoption easy for embedded system design engineers.

最後，我們預計在 7 月宣布進入 64 位元嵌入式微處理器市場，並提供一套產品、開發工具和其他支援要求，以滿足高效能嵌入式處理應用（包括支援 AI 的邊緣解決方案）的需求。這將擴展我們強大的 32 位元嵌入式微處理器產品組合，以實現更高的效能和增強的功能，同時保留 Microchip 歷來強大的領先開發工俱生態系統，使嵌入式系統設計工程師能夠輕鬆採用。

Microchip is the only company to offer the widest embedded control and processing platform from 8-bit to 64-bit as well as FPGAs with a common development tool ecosystem that's empowering customers to innovate and reuse their work across a wide spectrum of markets and applications.

Microchip 是唯一一家提供最廣泛的嵌入式控制和處理平台（從8 位到64 位）以及具有通用開發工俱生態系統的FPGA 的公司，該生態系統使客戶能夠在廣泛的市場和應用中創新和重用其工作成果。

Now for some color on the March quarter and the general business environment. All regions of the world and most of our end markets with the exception of Aerospace and Defense and the Artificial Intelligence subset of data centers were weak. We believe that our product shipments were significantly lower than the end market consumption of our products as our distribution channels drained inventory during the quarter.

現在對三月季度和整體商業環境進行一些分析。世界所有地區和大多數終端市場（航空航天和國防以及資料中心的人工智慧子集除外）都很薄弱。我們認為，由於我們的分銷管道在本季度耗盡了庫存，我們的產品出貨量明顯低於我們產品的終端市場消耗量。

Our broad base of customers continued to lower their inventory and adjust their business plans in the midst of a weak macro environment and an uncertain outlook. With no major supply constraints, coupled with very short lead times and a weak macro environment, we believe there is inventory destocking as well as reduction in target inventory levels that is underway at multiple levels. At our direct customers and distributors who buy from us, our indirect customers who buy through our distributors and in some cases, our customers' customers.

在疲軟的宏觀環境和不確定的前景下，我們廣大的客戶群繼續降低庫存並調整業務計劃。由於沒有重大的供應限制，加上交貨時間很短和宏觀環境疲弱，我們認為庫存去庫存以及目標庫存水準的降低正在多個層面進行。我們的直接客戶和從我們這裡購買的分銷商，透過我們的經銷商購買的間接客戶，在某些情況下，我們客戶的客戶。

We are, however, also seeing early signs of green shoots in our business. First, the level of request the cancellations and pushouts has started to subside. Second, our bookings have started to pick up, albeit from low levels. February bookings were the highest in 8 months. March bookings were the highest in all of fiscal '24 and April bookings were higher than March. Third, the new bookings are aging over a shorter period of time; and fourth, the number of expedites and shipment pull-in requests are growing. Collectively, these green shoots, we believe, are pointing to the formation of a bottom.

然而，我們也看到了我們業務復甦的早期跡象。首先，取消和延遲請求的數量已開始減少。其次，我們的預訂量已開始回升，儘管水準較低。 2 月的預訂量創 8 個月來最高。 3 月的預訂量是 24 年所有財年中最高的，4 月的預訂量也高於 3 月。第三，新預訂的老化時間較短；第四，加急和拉貨請求的數量不斷增加。我們認為，總的來說，這些綠芽預示著底部的形成。

Our average lead times continue to be 8 weeks or less. During a period of business uncertainty, we believe short lead times are the best way to help customers navigate the environment successfully and improve the quality of backlog placed with us. However, the significant reduction in lead time is also resulting in reduced near-term visibility for our business.

我們的平均交貨時間仍為 8 週或更短。在業務不確定的時期，我們相信較短的交貨時間是幫助客戶成功應對環境並提高我們積壓訂單品質的最佳方式。然而，交貨時間的大幅縮短也導致我們業務的近期能見度降低。

Given the severity of the inventory correction, our factories around the world are running at lower utilization rates and our 3 major fabs will take another 2-week shutdown in the June quarter in order to help control the growth of inventory.

鑑於庫存調整的嚴重性，我們在世界各地的工廠都在以較低的利用率運行，我們的三大晶圓廠將在六月季度再停產兩週，以幫助控制庫存的成長。

Our internal capacity expansion actions remain [poised]. We expect our capital investments in fiscal year '25 will be low, even as we prepare for the long-term growth of our business.

我們的內部產能擴張行動仍[蓄勢待發]。我們預計 25 財年的資本投資將會較低，儘管我們正在為業務的長期成長做準備。

On the CHIPS Act front, we have nothing new to report. The CHIPS office has completed their diligence for the grants we are seeking and we are working towards an agreement.

在《CHIPS 法案》方面，我們沒有什麼新消息可報告。 CHIPS 辦公室已完成對我們正在尋求的贈款的盡職調查，我們正在努力達成協議。

At this stage of a major inventory correction, we believe that the days of inventory metric whether for Microchip or for our distributors can be [deceptive] as this is a backward-looking indicator measuring off of a baseline that is well below where we believe end market consumption is at. For inventory planning, we are, therefore, focused on where we believe consumption is running and will likely run in the coming quarters. We continue to work with our distribution partners to attempt to find the right balance of inventory required to serve their customers, manage through their cash flow requirements and be positioned for the eventual strengthening of business conditions.

在重大庫存調整的現階段，我們認為，無論是Microchip 還是我們的經銷商的庫存天數都可能具有[欺騙性]，因為這是一個向後看的指標，衡量的基線遠低於我們認為的最終水平市場消費處於。因此，對於庫存規劃，我們將重點放在我們認為未來幾季的消費情況和可能情況上。我們繼續與我們的分銷合作夥伴合作，試圖找到服務客戶所需的適當庫存平衡，管理他們的現金流需求，並為最終加強業務條件做好準備。

The operating expense reduction efforts we implemented last quarter, including broad-based salary sacrifices are continuing this quarter. The shutdown for manufacturing team members and pay cuts for non-manufacturing team members are consistent with our long-standing culture of shared sacrifices and down cycles and shared rewards and up cycles. Our culture of shared sacrifice protects our valuable employees from layoffs, helps enable us to support customers and maintain our design win momentum, helps ensure that manufacturing capacity can be turned on quickly as business conditions strengthen and helps enable our product development teams to maintain their pace of new solution introductions.

我們上季實施的營運費用削減措施，包括廣泛的薪資犧牲，本季仍在繼續。製造團隊成員的停工和非製造團隊成員的減薪符合我們共同犧牲和下行週期以及共享獎勵和上升週期的長期文化。我們的共同犧牲文化保護我們有價值的員工免遭裁員，幫助我們為客戶提供支援並保持我們的設計獲勝動力，幫助確保製造能力能夠隨著業務條件的增強而快速啟動，並幫助我們的產品開發團隊保持他們的步伐新解決方案的介紹。

Now let's get into the guidance for the June quarter. While we see a number of green shoots in our business indicators, we still need turns orders within the quarter to meet our guidance. Operating in a high turns environment has historically been normal for Microchip. It is just not a position we have found ourselves in over the last few years due to a supply-constrained high backlog environment we and the industry experience.

現在讓我們來看看六月季度的指導。雖然我們的業務指標出現了一些新芽，但我們仍然需要在本季度內輪換訂單才能滿足我們的指導。對於 Microchip 來說，在高週轉環境中運作歷來都是正常的。由於我們和產業經歷的供應受限、積壓較多的環境，這並不是我們在過去幾年中發現的處境。

Taking all the factors we have discussed on the call today into consideration, we expect our net sales for the June quarter to be between $1.22 billion and $1.26 billion. We believe that the June 2024 quarter marks the bottom of the cycle for Microchip and our business will return to sequential revenue growth in the September 2024 quarter. We expect our non-GAAP gross margin to be between 59% and 61% of sales. We expect non-GAAP operating expenses to be between 28.25% and 28.75% of sales. We expect non-GAAP operating profit to be between 30.25% and 32.75% of sales, and we expect our non-GAAP diluted earnings per share to be between $0.48 and $0.56.

考慮到我們今天在電話會議上討論的所有因素，我們預計 6 月季度的淨銷售額將在 12.2 億美元至 12.6 億美元之間。我們認為，2024 年 6 月季度標誌著 Microchip 週期的底部，我們的業務將在 2024 年 9 月季度恢復收入環比增長。我們預計非 GAAP 毛利率將在銷售額的 59% 至 61% 之間。我們預計非 GAAP 營運費用將佔銷售額的 28.25% 至 28.75%。我們預計非 GAAP 營業利潤將在銷售額的 30.25% 至 32.75% 之間，我們預計非 GAAP 攤薄後每股收益將在 0.48 美元至 0.56 美元之間。

We believe that the fundamental characteristics of growth, profitability and cash generation of our business remain intact. We are confident that our solutions remain the engine of innovation for the applications and end markets we serve. Our focus on total system solutions and key market megatrends continue to fuel strong design win momentum, which we expect will drive above-market long-term growth. We remain committed to executing our Microchip 3.0 strategic imperatives, which we believe will deliver sustained results and substantial shareholder value.

我們相信，我們業務的成長、獲利能力和現金產生的基本特徵保持不變。我們相信，我們的解決方案仍然是我們所服務的應用和終端市場的創新引擎。我們對整體系統解決方案和主要市場大趨勢的關注繼續推動強勁的設計獲勝勢頭，我們預計這將推動高於市場的長期成長。我們仍然致力於執行我們的 Microchip 3.0 策略要務，我們相信這將帶來持續的成果和巨大的股東價值。

Last but not least, a month ago, we appointed Rich Simoncic as Chief Operating Officer. Rich is a Microchip lifer who has been with us for 35 years in many different capacities. Rich has been expanding his role over the last few years, and he and I will jointly lead the Microchip global enterprise so that we can apply our combined leadership capacity to engage the opportunities and challenges that are ahead of us.

最後但並非最不重要的一點是，一個月前，我們任命 Rich Simoncic 為營運長。 Rich 是 Microchip 的終身員工，他在我們公司工作了 35 年，擔任過許多不同的職位。 Rich 在過去幾年中一直在擴大他的職責，他和我將共同領導 Microchip 全球企業，以便我們能夠運用我們的綜合領導能力來應對我們面前的機會和挑戰。

With that, let me pass it back on to Steve to talk more about our cash return to shareholders. Steve?

說到這裡，讓我把它轉交給史蒂夫，多談談我們對股東的現金回報。史蒂夫？

Thank you, Ganesh, and good afternoon, everyone. I would like to provide you with a further update on our cash return strategy. The Board of Directors approved an increase in the dividend of 18% from the year ago quarter to a record $0.452 per share. During the last quarter, we purchased a record $387.4 million of our stock in the open market. We also paid out a record $242.5 million in dividends. Thus, the total cash return was a record $629.9 million. This amount was 82.5% of our actual adjusted free cash flow of $763.4 million during the December 2023 quarter. Our net leverage at the end of March 2024 was 1.57x.

謝謝你，Ganesh，大家下午好。我想向您提供有關我們現金返還策略的進一步更新。董事會批准將股息較去年同期增加 18%，達到創紀錄的每股 0.452 美元。上個季度，我們在公開市場購買了創紀錄的 3.874 億美元股票。我們還支付了創紀錄的 2.425 億美元股息。因此，總現金回報達到創紀錄的 6.299 億美元。這筆金額佔 2023 年 12 月季度實際調整後自由現金流 7.634 億美元的 82.5%。截至 2024 年 3 月末，我們的淨槓桿率為 1.57 倍。

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 a total of $4.23 billion to shareholders through March 31, 2024, by a combination of dividends and share buybacks. During this period, our share buyback in the open market was approximately 30.4 million shares, representing approximately 5.7% of our shares outstanding.

自從我們在 2021 年 11 月獲得債務投資等級評級並轉向提高股東資本回報以來，截至 2024 年 3 月 31 日，我們透過股利和股票回購的方式總共向股東返還了 42.3 億美元。在此期間，我們在公開市場回購的股票數量約為3,040萬股，約占我們已發行股票的5.7%。

In the current June quarter, we will use the adjusted free cash flow level from the March quarter to target the amount of cash returned to shareholders. The adjusted free cash flow excludes amounts we collected from our customers for long-term supply assurance payments. These payments are refundable when purchase commitments are fulfilled.

在目前的六月季度，我們將使用三月季度調整後的自由現金流水準來確定返還給股東的現金金額。調整後的自由現金流不包括我們向客戶收取的長期供應保證付款金額。當履行購買承諾時，這些款項可退還。

Our adjusted free cash flow for the March quarter was $389.9 million, so our target return to shareholders would be 87.5% or $341.2 million of that amount. However, as Ganesh mentioned, we did complete 2 small acquisitions in this June quarter. So we are reducing our share buyback amount to reflect the cash outlay for those deals. Thus, in the June quarter, our cash return to shareholders is expected to be $315.3 million, out of which dividends are expected to be approximately $243 million and our expected stock buyback will be approximately $72.3 million.

我們三月季度調整後的自由現金流為 3.899 億美元，因此我們股東的目標回報率為該金額的 87.5%，即 3.412 億美元。然而，正如 Ganesh 所提到的，我們在這個 6 月的季度確實完成了 2 項小型收購。因此，我們正在減少股票回購金額，以反映這些交易的現金支出。因此，在第二季度，我們向股東提供的現金回報預計為 3.153 億美元，其中股息預計約為 2.43 億美元，我們預計股票回購約為 7,230 萬美元。

Going forward, we plan to continue to increase our adjusted free cash flow to return to shareholders by 500 basis points every quarter until we reach 100% of adjusted free cash flow returned to shareholders through dividends and share buybacks. That will take 3 more quarters, and we expect that dividends over time will represent approximately 50% of our cash returns.

展望未來，我們計劃繼續增加調整後的自由現金流，每季向股東返還 500 個基點，直到透過股利和股票回購將調整後的自由現金流 100% 返還給股東。這還需要 3 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的約 50%。

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

那麼，接線員，請您投票提問。

(Operator Instructions) Our first question is from Vivek Arya with Bank of America Securities.

（操作員說明）我們的第一個問題來自美國銀行證券公司的 Vivek Arya。

Ganesh, you were suggesting June to be the bottom end for September to grow sequentially because of green shoots. But to be fair, green shoots were suggested on the last call also. So what's the difference between the last call and this call and if you could help us maybe quantify what has been maybe the pace of bookings increase year-on-year or quarter-on-quarter so far, so we can get a sense for the pace of recovery into September.

Ganesh，您建議六月是九月連續生長的底端，因為有綠芽。但公平地說，最後一次電話會議也提出了新的想法。那麼上次電話和這次電話之間有什麼區別？

And then maybe if I could also ask, Eric, on a related note is, 60% also the trough for gross margin, if June is the bottom, does it also mean 60% is the trough for gross margins?

然後也許我還可以問，Eric，相關說明是，60% 也是毛利率的低谷，如果 6 月是底部，是否也意味著 60% 是毛利率的低谷？

Great. Thank you, Vivek. I don't think we mentioned green shoots at the last earnings call, but we did say in one of our banking sessions that we were at. And that was the first time we began to see it was in the March timeframe. And the momentum is picking up, right, as we go through March and April and May. I mentioned what the bookings were doing on a relative basis over that time, we can see how many more people are asking for pull-ins and expedites and all of that.

偉大的。謝謝你，維韋克。我不認為我們在上次財報電話會議上提到了復甦跡象，但我們確實在一次銀行會議上提到了這一點。這是我們第一次看到它是在三月的時間範圍內。隨著三月、四月和五月的到來，這種勢頭正在增強，對吧。我提到了在那段時間相對基礎上的預訂情況，我們可以看到有多少人要求拉入和加急等等。

So it's a qualitative view looking at how we integrate the last 2 or 3 months of where momentum is coming in, where the customer feedback is coming in that reflects our view that if the June quarter is the bottom and September quarter is growth.

因此，這是一種定性觀點，著眼於我們如何整合過去 2 或 3 個月的動力來源、客戶回饋的來源，反映了我們的觀點，即 6 月季度是底部，9 月季度是成長。

And then a follow-up question for me on that was on gross margin. And would I expect if June is the trough in revenue if gross margin would bottom out. And I believe that to be the case. I mean, obviously, we haven't given guidance yet, and there's factors that apply to that, that we don't know yet in terms of product mix and where we'll be running our factories. But I think that we are bouncing along the bottom on gross margin.

然後我的一個後續問題是毛利率。我預計如果六月是收入的低谷，毛利率會觸底嗎？我相信情況確​​實如此。我的意思是，顯然，我們還沒有給出指導，並且存在一些適用的因素，我們還不知道產品組合以及我們將在哪裡運作我們的工廠。但我認為我們的毛利率正在觸底。

Our next question is from Chris Caso with Wolfe Research.

我們的下一個問題來自沃爾夫研究公司的克里斯·卡索。

I guess the question is if there's any difference that you're seeing from any of the different end markets? I mean, you talked about some of the booking stabilization improvement that you've seen. How would you characterize that among the different end markets?

我想問題是您從不同的終端市場中看到的是否有任何差異？我的意思是，您談到了您所看到的一些預訂穩定性的改進。您如何看待不同終端市場的特性？

I don't -- on the stabilization, I can't really point to a particular end market doing better or not. I said in the aggregate, Aerospace and Defense and the AI segment of data center are both doing well. And so that part is pulling it up. On the others, there can be some industrial customers who are still seeing weakness, others who are beginning to see the bottom and trying to come back in with rush orders, that goes into the other end markets as well. So no particular end market trend that is distinguishable on the bottoming out of where their inventories are.

我不認為——在穩定方面，我不能真正指出某個特定的終端市場做得更好或不好。我說總體來說，航空航太和國防以及資料中心的人工智慧領域都做得很好。所以這部分正在拉升它。在其他方面，可能有一些工業客戶仍然感到疲軟，而另一些工業客戶則開始看到底部並試圖帶著緊急訂單回來，這些訂單也進入了其他終端市場。因此，在庫存觸底反彈方面，並沒有明顯的終端市場趨勢。

As a follow-up, Eric, you talked about perhaps if things go well, June is the trough and then June is likely the bottom for gross margins as well. As you go forward, as we pull our way out of this, what do you think would be the trajectory of gross margins? And I guess I asked that taking consideration the fact that your internal inventory is still high. So how would we think about gross margins in the context of recovery as you have to bring your own inventories down to normal?

作為後續行動，埃里克，您談到也許如果一切順利，六月是低谷，然後六月也可能是毛利率的底部。當你繼續前進時，當我們擺脫困境時，你認為毛利率的軌跡會是怎麼樣的？我想我問這個問題是考慮到你們的內部庫存仍然很高。那麼，當您必須將自己的庫存降至正常水平時，我們將如何考慮復甦背景下的毛利率？

So it does depend on the revenue trajectory and then how we would run our factories to respond to that. And so it's not a question that I can 100% answer today. But our cost structures are still in good shape. Average selling prices are absolutely hanging in there. So with that, we have confidence in our long-term model and our ability to get back there, but the trajectory and how we get there is going to very much be revenue dependent, which will drive certain actions to increase output from our factories. So I know that's not specifically answering your question, but I think that's the best we can do right now.

因此，這確實取決於收入軌跡，以及我們將如何運作我們的工廠來應對這種情況。所以這不是一個我今天可以 100% 回答的問題。但我們的成本結構仍然處於良好狀態。平均售價絕對穩定在那裡。因此，我們對我們的長期模式和重返目標的能力充滿信心，但我們實現目標的軌跡和方式將在很大程度上取決於收入，這將推動某些行動來增加我們工廠的產量。所以我知道這並沒有具體回答你的問題，但我認為這是我們現在能做的最好的事情。

Our next question is from Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Can you just talk about channel sell-through dynamics from your global distributors? In March, you mentioned sell-through $125 million higher versus sell-in. Is that a similar delta here in the June quarter, and if excess inventories at end customer of distributors are coming down, I would assume that distribution sell-through is starting to grow. Are you seeing that this quarter? And is this maybe what's also giving you confidence that June is the bottom?

您能談談您的全球經銷商的通路銷售動態嗎？ 3 月份，您提到售出率比售入額高出 1.25 億美元。六月季度是否存在類似的增量，如果分銷商最終客戶的過剩庫存下降，我認為分銷銷售開始成長。這個季度你看到了嗎？這是否也讓您相信六月已經觸底？

So Harlan, thanks for the question. The level of inventory that is past what our distributors had that is in with our customers is not always visible to us. I think we can get some sense of that from what the distribution sell-through is. But there's also a second factor, which is some of those customers are also reducing the months of inventory they want to carry. So it's a multipronged answer to it. But what we can see is that distribution is part of the placing of additional orders on us.

哈倫，謝謝你的提問。我們並不總是能看到超出分銷商在客戶手中的庫存水準。我認為我們可以從分銷銷售情況中了解這一點。但還有第二個因素，其中一些客戶也在減少他們想要持有的庫存月數。所以這是一個多管齊下的答案。但我們可以看到，分銷是向我們追加訂單的一部分。

So they are seeing how they are managing their end customers, their inventory and placing incremental orders on us. So that must have some relevance to how they're viewing things, but I don't have a definitive answer on where sell-through is going to end up versus sell-in here in the June quarter, at least not at this time.

因此，他們正在了解如何管理最終客戶、庫存並向我們下增量訂單。因此，這肯定與他們如何看待事物有一定的相關性，但對於六月季度的售出率與售入率的最終結果，我沒有明確的答案，至少目前還沒有。

And then just a quick follow-up. So direct customer shipments were almost 30%. We're down almost 30% sequentially, while disti shipments were only down 20% sequentially in March. Does that suggest that excess inventories are maybe a bit more pronounced at your direct customers? And if your lead times are sub 8-weeks, you guys only have visibility through the end of this quarter. So what gives the Microchip team confidence that shipments to direct customers post June will be growing sequentially as you aren't booking beyond that and you don't really have visibility into their sell-through dynamics?

然後進行快速跟進。因此直接客戶出貨量幾乎佔 30%。 3 月份，我們的出貨量較上季下降了近 30%，而經銷商的出貨量僅較上季下降了 20%。這是否表示庫存過剩對您的直接客戶可能更為明顯？如果您的交貨時間不到 8 週，那麼您只能在本季末之前看到結果。那麼，是什麼讓 Microchip 團隊相信 6 月之後向直接客戶的發貨量將連續增長，因為您不會預訂超出這個數量的訂單，而且您也無法真正了解他們的銷售動態？

So we know -- and customers are placing backlog into the September quarter, into the December quarter. So there's not a single answer that everybody is following. And we can see that as the bookings are rising, they are placing them into the next 3 to 6-months on a more predominant basis. So that level of where the momentum is coming in or how backlog is coming in is what gives us a sense of where the bottom is and how things are going to be as we move into the September and December quarters.

所以我們知道，客戶正在將訂單積壓到 9 月季度和 12 月季度。因此，沒有一個答案是每個人都遵循的。我們可以看到，隨著預訂量的增加，他們將更多的時間安排在未來 3 到 6 個月內。因此，勢頭的到來或積壓的程度讓我們了解底部在哪裡，以及當我們進入 9 月和 12 月季度時情況將如何。

Our next question is from Gary Mobley with Wells Fargo.

我們的下一個問題來自富國銀行的加里·莫布里。

I know you guys communicated that you held the OpEx lower than expected. And I think it's today, what, $355 million on a non-GAAP basis. My question is, how long can you hold that down? And is there any clawback provisions for the loss wages during this temporary salary cut? And I'm just trying to get a sense of how we should think about the OpEx increasing as revenue increases?

我知道你們表示營運支出低於預期。我認為，以非 GAAP 計算，今天的收入是 3.55 億美元。我的問題是，你能撐多久？這次臨時減薪期間的工資損失，是否有補償規定？我只是想了解我們應該如何看待營運支出隨著收入的增加而增加？

I'll start with the response and Ganesh can add to it if he wants to. So there is not a clawback in terms of what we're doing from a salary sacrifice for our employees. We have the shared sacrifice, share reward program. And in the past, when we have implemented something like this that has worked out well for our employees, that we keep everybody working on the things that are important to drive the revenue growth as the cycle turns upward, and we've gained market share through that.

我將從回應開始，如果 Ganesh 願意的話可以添加。因此，我們為員工所做的薪資犧牲並沒有帶來任何補償。我們有共同犧牲、共同回報的計劃。在過去，當我們實施了這樣對我們的員工效果良好的措施時，我們會讓每個人都致力於隨著週期的上升而推動收入增長的重要事情，並且我們獲得了市場份額通過那。

And so we've had great financial results coming out of it and then been able to share those rewards with employees through higher bonuses and taking away the pay cuts at the appropriate time. So we're going to have to see how this plays out from a topline revenue perspective. It would be my perspective that we will achieve the same types of results this go around with the actions that we've taken, but there's no promise to employees that they're going to get this money back. There's no retroactive clawback that would be implemented.

因此，我們取得了很好的財務業績，然後能夠透過更高的獎金與員工分享這些回報，並在適當的時候取消減薪。因此，我們必須從營收角度來看看這將如何發揮作用。我的觀點是，我們將透過我們採取的行動取得同樣的結果，但沒有向員工承諾他們會收回這筆錢。不會實施追溯追回。

This is a part of our culture that is not always as easily appreciable from an investor community. We have 98% of employees around the world that are participating in this voluntary. We have another 700 employees who have volunteered for a higher salary reduction than what we have requested from them. It's very difficult to quantify how powerful culture plays the role in these type of difficult situations and how much that the employees are part of the solution. And of course, they are part of the shared rewards that come up as we get into better times as well. So this is very much of a program that has worked many times in the past and this is another time we're applying it, and we expect it to be successful.

這是我們文化的一部分，但投資者群體並不總是那麼容易理解。我們全球 98% 的員工都參與了這項志工活動。我們還有另外 700 名員工自願接受比我們要求的更高的減薪。很難量化強大的文化在此類困難情況下發揮的作用以及員工在解決方案中的參與程度。當然，當我們進入更好的時代時，它們也是共享獎勵的一部分。因此，這個計劃在過去已經多次發揮作用，這是我們另一次應用它，我們希望它能夠成功。

I think the other thing that I'd add is we know this is difficult for employees. The inflation still exists, and this is a challenge for employees. So it's not that we want to keep these in place. But at the time, with where we're guiding revenue for the current quarter of revenue and earnings, it's appropriate. And we hope that we can restore these things back to normal salary levels as soon as possible.

我想我要補充的另一件事是我們知道這對員工來說很困難。通貨膨脹仍然存在，這對員工來說是一個挑戰。所以我們並不是想保留這些。但目前，根據我們對當前季度收入和盈利的指導，這是合適的。而我們希望能夠盡快將這些東西恢復到正常的薪資水平。

Thank you for that color, as my follow-up, I wanted to perhaps strike a more positive chord and ask about design win metrics for the fiscal year. I don't know if you have those stats on handy with you, but maybe if you can just give us some qualitative or quantitative measure of the lifetime value of the design wins.

謝謝你的顏色，作為我的後續行動，我也許想引起更積極的共鳴，並詢問本財年的設計獲勝指標。我不知道你是否手邊有這些統計數據，但也許你能給我們一些設計勝利的終身價值的定性或定量衡量標準。

So we don't usually break that out and we have slightly different ways in which we look at this. What we do constantly look at is how is the design pipeline progressing. And in the course of 2023 in addition to all the work that we did, we also saw customers shifting their priorities from doing triage for some of the shortages that they were running into bringing back the innovation program that they had put on hold. And so if you put all of that together, the design win pipeline is strong.

所以我們通常不會打破這一點，我們看待這個問題的方式也略有不同。我們經常關注的是設計流程的進展。在 2023 年期間，除了我們所做的所有工作之外，我們還看到客戶將他們的優先事項從對他們遇到的一些短缺進行分類，轉變為恢復他們擱置的創新計劃。因此，如果將所有這些放在一起，設計獲勝管道就會很強大。

There's a lot more design-in activity in the last 12 months than there was in the prior 12 months, just simply because customer bandwidth was there to be able to run the development program that they were progressing with.

過去 12 個月的設計活動比之前 12 個月要多得多，這僅僅是因為客戶的頻寬能夠運行他們正在進行的開發程式。

Our next question is from Carlos Coronado with UBS.

我們的下一個問題來自瑞銀集團的卡洛斯·科羅納多。

It's Tim on. So Ganesh, can you give us a sense of book-to-bill. It sounds like it was below 1 for March, but I just wanted to confirm that. And I know that you did say that orders are getting better month by month. But is the message that you think book-to-bill could be above 1 for the June quarter. So I'm just wondering if you can talk about book-to-bill?

是蒂姆在。 Ganesh，您能為我們介紹一下訂單到帳單的情況嗎？聽起來 3 月的數字低於 1，但我只是想確認一下。我知道您確實說過訂單逐月改善。但您認為 6 月季度的訂單出貨比可能會高於 1。所以我想知道你能否談談訂單到帳單的問題？

So book-to-bill was below 1. However, book-to-bill has never been an indicator for us of where the business is going as much as an indicator of where our lead times are. During the 2021, 2022 shortages, we had book-to-bill in many, many multiples of where they were at, reflecting the long lead times. Right now with short lead times that we have, we expect book-to-bill will be lower. But the bookings are rising, and I can't quite tell what May and June are going to complete. So I don't have anything. We don't really look at book-to-bill as necessarily an indicator of where the growth is going to be. It's more a reflection of as lead times get short, people replace the booking consistent with the shorter lead times.

因此，訂單出貨比低於 1。在 2021 年和 2022 年的短缺期間，我們的訂單到帳單數量是當時水準的許多倍，這反映出交貨時間很長。目前，由於交貨時間較短，我們預計訂單出貨量將會降低。但預訂量正在上升，我不太清楚五月和六月會完成什麼。所以我什麼都沒有我們並不真正將訂單出貨比視為成長方向的必然指標。這更反映了隨著交貨時間的縮短，人們會根據較短的交貨時間更換預訂。

Got it. Okay. And then, Eric, one for you. So inventory was a little higher coming out of March and I think some of us thought it would be. Can you talk about loadings in the factory and sort of how you're thinking about loadings into June? Are you just kind of drawing the line, I understand where you plan to bring down inventory on the balance sheet in June? And yes, just kind of talk about that and its impact on gross margin.

知道了。好的。然後，艾瑞克，給你一個。因此，三月的庫存量略高，我想我們中的一些人也這麼認為。您能談談工廠的裝貨情況以及您對六月裝貨的看法嗎？您只是在劃清界線嗎？是的，只是談談這一點及其對毛利率的影響。

Yes. So I'm honestly not quite sure where The Street had us modeled. We had talked about in our last conference call that inventory days are expected to be between about 225 to 230-days at the midpoint. We came in at 224. So I think we kind of delivered on what we told The Street we were going to do. In terms of utilization in the current quarter, we have been having some attrition in our factories. And because of that, we can start less wafers on a monthly basis than we can because we have a fewer number of employees.

是的。所以說實話，我不太確定《華爾街日報》讓我們在哪裡建模。我們在上次電話會議中談到，庫存天數預計中位數約為 225 至 230 天。我們以 224 的價格進入。就本季的利用率而言，我們的工廠出現了一些人員流失。正因為如此，我們每月可以啟動的晶圓數量比我們的員工數量更少。

But it's -- in the big picture, things are relatively modest. I don't think utilization will be significantly different than it was in the March quarter, maybe just modestly lower.

但從整體來看，情況相對溫和。我認為利用率不會與三月季度有顯著差異，可能只是略有下降。

Our next question is from Tore Svanberg with Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Let me move on from cyclical questions. And I have a question on 64-bit microcontrollers. You also had an AI acquisition in the quarter. Just trying to understand, Ganesh, your conversations with customers, we hear AI at the edge a lot, but it's hard for us to get true visibility on that. So -- when will Edge AI become a much more meaningful part of your revenues, what you think?

讓我繼續討論週期性問題。我有一個關於 64 位元微控制器的問題。您在本季也進行了人工智慧收購。 Ganesh，只是想了解您與客戶的對話，我們經常聽到邊緣人工智慧，但我們很難真正了解這一點。那麼，您認為 Edge AI 何時會成為您收入中更有意義的一部分？

Our target markets for Edge AI predominantly in industrial, smaller extent, automotive, some in medical. The medical segment of industrial factory automation, all that. So they are designs in progress and they've been taking place over the last 6 to 12-months. They probably will just take over 24 to 30-months of time. So it's in that time. There's some of it -- small amounts that are already taking place, but I think it becomes a more and more meaningful part as time goes on.

我們的邊緣人工智慧目標市場主要是工業，較小範圍，汽車，還有一些醫療領域。工業工廠自動化的醫療領域等等。因此，這些設計正在進行中，並且在過去 6 到 12 個月內一直在進行。他們可能只需要 24 到 30 個月的時間。所以就是在那個時候。其中一些——少量已經發生，但我認為隨著時間的推移，它會變得越來越有意義。

And each of these either product line announcement or some of the acquisitions which give us specific technologies, just accelerate where those designs can go and how our solutions can be differentiated from others providing similar solutions.

每一個產品線的發布或一些為我們提供特定技術的收購，都只是加速了這些設計的發展，以及我們的解決方案如何與其他提供類似解決方案的解決方案區分開來。

Great. And as my follow-up, you said that you're basically shipping below consumption. You're about $1 billion from your trough. Obviously, you're running inventory at a certain level. So you must have some idea where the consumption is. Is that a number you can share with us?

偉大的。作為我的後續行動，您說您的運輸量基本上低於消耗量。您距離低谷大約還有 10 億美元。顯然，您的庫存已達到一定水準。所以你必須知道消費在哪裡。您可以與我們分享這個號碼嗎？

Not With any level of precision. I think any form of a -- take a 4-quarter revenue divided by 4 starts to get you into the ballpark. But even that is unclear, right? So I think that number will get clearer as people begin to book and buy at a level that they need to -- excluding any growth just to get back to consumption. But there's not an easy way to make that number determinable. It's clearly between where our peak a year ago was in the June quarter to where you're seeing the guidance for this quarter.

不具有任何精確度。我認為任何形式的——用 4 個季度的收入除以 4 開始就可以讓你進入大概範圍。但即使這樣也不清楚，對吧？因此，我認為，隨著人們開始以他們需要的水平預訂和購買，這個數字將會變得更加清晰——不包括任何為了恢復消費而出現的增長。但沒有簡單的方法可以確定這個數字。顯然，它介於一年前六月季度的峰值和本季的指導值之間。

Our next question is from Toshiya Hari with Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

I had two quick ones. First, on inventory, maybe for Eric. So how should we think about inventory management through cycle or longer term? I know you've got strategic inventory. I know you want to better service your customers on the way up. But when you think 12 months out, 18 months out, whether be in dollars or days, what are you managing the business to?

我有兩個快的。首先，關於庫存，也許是針對艾瑞克的。那我們應該如何考慮週期或更長期的庫存管理呢？我知道你有戰略庫存。我知道您希望在晉升過程中更好地為客戶提供服務。但當你考慮 12 個月、18 個月後，無論是美元還是天數，你管理企業的目的是什麼？

And then quick follow-up on pricing. I think you mentioned that in the near term, pricing is holding up. But as you think about calendar '25, I think some of your peers have talked about pricing trends potentially reverting to pre-pandemic patterns down, call it, low singles. Is that a view that you would agree with or share? Or do you feel or think differently on pricing?

然後快速跟進定價。我想你有提到過，在短期內，定價保持不變。但當你想到 25 日曆年時，我認為你的一些同行已經談到定價趨勢可能會恢復到大流行前的模式，稱之為低單打。您同意或分享這個觀點嗎？或者您對定價有不同的感受或想法嗎？

Okay. All right. So on inventory days, longer term, our model is, and this really hasn't changed from what we shared back in our Analyst and Investor Day that we're targeting 130 to 150 days. Now we're a long way from that today, and I'm not going to put a time horizon on when we will get there, but that's still the goal, right? We think with that level in a more normalized environment, we can have short lead times and support our customers appropriately with that level. So I'll turn the pricing question over to Ganesh.

好的。好的。因此，就庫存天數而言，從長遠來看，我們的模型是這樣的，這實際上與我們在分析師和投資者日分享的目標沒有改變，我們的目標是 130 到 150 天。現在，我們距離今天的目標還有很長的路要走，我不會設定我們何時到達目標的時間範圍，但這仍然是目標，對嗎？我們認為，在更規範化的環境中，透過這一水平，我們可以縮短交貨時間，並以此水平為我們的客戶提供適當的支援。所以我將把定價問題交給 Ganesh。

And I would add one more thing, which is we also have these last time buys that we put into place on very high gross margin product lines, those will be additive and they are situational depending on when we're faced with that kind of situation.

我還要補充一件事，那就是我們還有最後一次購買，我們在毛利率非常高的產品線上進行了這些購買，這些將是附加的，並且它們是根據情況而定的，具體取決於我們何時面臨這種情況。

On the pricing itself, our pricing is predominantly a function of what we have to compete with at the point of design. And so in the near term, pricing is really driven by where designs were historically, what we won them at. And a lot of these are products going into applications that have long life cycles and they don't really change or like a consumer electronics or other end markets, they don't really every 9, 12 months change things out.

就定價本身而言，我們的定價主要取決於我們在設計時必須與之競爭的產品。因此，在短期內，定價實際上取決於設計的歷史地位以及我們贏得它們的原因。其中許多產品進入的應用具有很長的生命週期，它們並沒有真正改變，或者像消費性電子產品或其他終端市場一樣，它們並不是真正每 9、12 個月就會改變一次。

We have products that have been in designs for 5, 7, 9, 10 years in many cases as well. We are being competitive on new designs with pricing where we need to be, but we also have new products that we compete with. And so the most competitive new products are what we use to go fight in the most price-sensitive new design applications. And that's been historically how -- explains it's not something new. And if we go back and look at 20 years of Microchip, that's how we've done it.

在很多情況下，我們的產品設計已經有5年、7年、9年、10年的時間。我們在新設計上具有競爭力，定價符合我們需要的水平，但我們也有新產品可以與之競爭。因此，最具競爭力的新產品就是我們用來在對價格最敏感的新設計應用中進行戰鬥的產品。從歷史上看，這就是——解釋說這並不是什麼新鮮事。如果我們回顧一下 Microchip 的 20 年，我們就是這麼做的。

And we have a lot of business that continues, that will be existing business at existing prices for a long, long time to come. And then we'll have new business at new pricing. And at new pricing, we expect we'll have good gross margins as time goes on.

我們有很多業務仍在繼續，這些業務將在未來很長一段時間內以現有價格進行。然後我們將以新的定價開展新業務。在新的定價下，我們預計隨著時間的推移，我們將擁有良好的毛利率。

Our next question is from Joshua Buchalter with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Joshua Buchalter。

I guess to start, maybe I can follow up on the previous one. You mentioned pricing hanging in overall, but competing more on new design wins. Have those -- are you observing those new design wins becoming any more price sensitive or more price competitive as the shortages of ease and we've entered this correction mode? Or sort of still normal operating in and competitive conditions?

我想首先，也許我可以跟進上一個。您提到整體定價不變，但在新設計上的競爭更加激烈。您是否觀察到，隨著易用性的短缺以及我們已經進入這種修正模式，這些新設計的勝利變得對價格更加敏感或更具價格競爭力？或在競爭條件下仍然正常運作？

New designs have always been highly competitive. It's where people are trying to work on winning platforms with multiyear implications. So it's in the couple of years of constraints, there were fewer new platforms, new designs that customers are doing. But in the sense of having to be competitive and the competitive intensity for new designs, yes, it's different from the last 2 or 3-years, but it is consistent with what it has been over 20-years before that.

新設計一直具有很強的競爭力。人們在這裡努力開發具有多年影響力的獲勝平台。因此，在這幾年的限制下，客戶正在做的新平台、新設計越來越少。但就必須具有競爭力以及新設計的競爭強度而言，是的，這與過去兩三年不同，但與之前 20 多年的情況是一致的。

That's clear. I appreciate the color there. And then for my follow-up, the CapEx guidance is obviously down meaningfully off of what was likely a peak 2-years ago. Could you maybe just speak to your confidence in having enough capacity both internally and perhaps more importantly, investment from your foundry partners at across geometries that you ship your products on?

很清楚。我很欣賞那裡的顏色。然後，對於我的後續行動，資本支出指導顯然比兩年前的高峰大幅下降。您能否談談您對內部擁有足夠產能的信心，也許更重要的是，您的代工合作夥伴在您運送產品的幾何形狀上的投資？

Yes. So when we say -- it's a plan that we look at consistently, both short, medium and long term. We feel very confident with the internal capacity, both what is installed and underutilized, what is available and ready to go and then eventually what we might add to it. And then we work with our partners, both the foundries as well as the OSATs on their capacity planning across the horizon that they have. We're obviously a small piece of a much bigger pie there that they're running.

是的。因此，當我們說——這是一個我們持續關注的計劃，無論是短期、中期還是長期。我們對內部容量非常有信心，包括已安裝的容量和未充分利用的容量、可用的容量和準備就緒的容量以及最終我們可能添加的容量。然後我們與我們的合作夥伴（包括代工廠和 OSAT）合作，制定他們現有的產能規劃。顯然，我們只是他們經營的更大蛋糕中的一小部分。

But we don't have any particular capacity constraints that we're concerned about. It may change as demand begins to come back, and if, in fact, there is a much sharper rise as some people are predicting. But for the moment, we're quite confident both in our internal as well as our partner capacity for the business we're running.

但我們沒有任何我們擔心的特定容量限制。隨著需求開始回升，事實上，如果像一些人預測的那樣出現更大幅度的成長，情況可能會改變。但目前，我們對我們內部以及合作夥伴對我們正在經營的業務的能力充滿信心。

(Operator Instructions) Our next question is from Chris Danely with Citibank.

（操作員說明）我們的下一個問題來自花旗銀行的 Chris Danely。

So now that we're yet another quarter into the correction and hopefully coming out of it, if we look at your total drop in terms of revenue, it's probably going to be like 45% or something like that. And that's worse than most of your competitors. So I guess, why do you think that is? Do you think that the PSP program encouraged a little double ordering? Is there some geographic or something else going on? Just looking for some -- for your take on why that's happened?

因此，現在我們又進入了一個季度的調整，並希望能夠走出調整，如果我們看一下收入的總降幅，可能會達到 45% 或類似的水平。這比大多數競爭對手還要糟糕。所以我想，你認為這是為什麼？您認為 PSP 計劃是否鼓勵重複訂購？是否有地理原因或其他原因？只是尋找一些東西——您對為什麼會發生這種情況的看法？

No, great question, Chris. When you look at peak to trough, it all is a question of when does it start? And when does it bottom out, right? You've seen one of our peer group companies that try to do a peak trough in one quarter. And you could say, boy, that was one way to do it. Our objective has always been to try to respond as the business is changing. And so we've had different end markets responding at different times. We had a lot of automotive and industrial. They were later in the cycle. And our mix is higher in some of those markets as well.

不，很好的問題，克里斯。當你觀察高峰到低谷時，問題就在於它何時開始？什麼時候見底，對吧？您已經看到我們的一家同行集團公司試圖在一個季度內達到高峰低谷。你可以說，孩子，這是一種方法。我們的目標始終是努力應對業務的變化。因此，我們在不同的時間有不同的終端市場做出反應。我們有很多汽車和工業產品。他們後來進入了循環。我們在其中一些市場的組合也更高。

And in this case, the downturn substantially deeper than what anybody had expected on that. And that's probably a component of PSP that may have amplified some of those things, et cetera. But a lot of it has to do with we started later, and we are correcting stronger. And the end markets that we are predominantly represented in were the ones with the later in the cycle correction than perhaps those that are more consumer or phone or PC, that kind of exposure.

在這種情況下，經濟衰退比任何人預期的都要嚴重得多。這可能是 PSP 的一個組成部分，可能放大了其中一些東西，等等。但這很大程度與我們起步較晚有關，而且我們的矯正力道更強。我們主要代表的終端市場是那些在周期修正中較晚的市場，而不是那些更多的消費者、手機或個人電腦，這種暴露的市場。

Our next question is from Vijay Rakesh with Mizuho Securities.

我們的下一個問題來自瑞穗證券的 Vijay Rakesh。

Just a quick question on the competitive landscape, I guess, especially as you look at kind of China supply. Is there any worry around them being aggressive on the microcontroller supply coming out from there? What are you seeing in those trends?

我想，這只是一個關於競爭格局的簡單問題，尤其是當你關注中國的供應情況時。是否擔心他們對來自那裡的微控制器供應表現出侵略性？您在這些趨勢中看到了什麼？

China has always been a competitor in many of the spaces that we're in. Their approach is a little bit different. They have a lot of their attention going into things that can be faster to market quicker. And those tend to take them into places like consumer electronics and the other areas that are faster design-in cycle, a lot of the power supplies for cell phones and those kind of things.

中國一直是我們所處的許多領域的競爭對手。他們將大量注意力投入到可以更快推向市場的產品上。這些往往會將它們帶入消費性電子產品和其他設計週期更快的領域，例如手機電源等領域。

Clearly, they are also making products that can go into other end applications. And that's a competitive environment that is not different today. You could argue perhaps that there's a lot of attention and priority that they have. But we win with new products, we win with competitive solutions that we have. And we win by providing the customer with a solution that is better than what they can get otherwise. And that remains the way in which we've gone to market, and we'll continue to fight for new business in China and anywhere else.

顯然，他們也在生產可用於其他最終應用的產品。這種競爭環境與今天並沒有什麼不同。你可能會說他們受到了很多關注和優先考慮。但我們以新產品取勝，以我們擁有的有競爭力的解決方案取勝。我們透過為客戶提供比其他方式更好的解決方案來獲勝。這仍然是我們進入市場的方式，我們將繼續在中國和其他地方爭取新業務。

Got it. And then as you look at the utilization, I don't know if we gave a hard number there. But how do you see that playing out through the rest of the year? I know there's a lot of moving parts to that. But any way to look at what utilization looks like? I know you cut CapEx pretty significantly too so that should help?

知道了。然後當你查看利用率時，我不知道我們是否給了一個確切的數字。但您如何看待今年剩餘時間的情況？我知道這其中有很多變化的部分。但是有什麼方法可以查看使用率是什麼樣的嗎？我知道您也大幅削減了資本支出，這應該會有幫助嗎？

Yes. So we don't break out a specific utilization in total, we have -- it varies very much by factory. We have had some attrition in employee headcount, which I mentioned in response to an earlier question that just makes it as we go by the months and aren't rehiring, that capacity utilization would come down modestly. I'm not expecting a huge change from March to June, maybe just a little bit lower. And then obviously, actions depending on what our outlook is on revenue and inventory will drive what the rest of the year looks like as we gain a little bit more confidence in understanding where the business is heading over the coming months.

是的。因此，我們沒有列出具體的總體利用率，但不同工廠的利用率差異很大。我們的員工人數有所減少，我在回答之前的一個問題時提到過，隨著我們幾個月過去並且不再重新招聘，產能利用率將會適度下降。我預計三月到六月不會發生巨大變化，可能只是低一點。顯然，根據我們對收入和庫存的展望而採取的行動將推動今年剩餘時間的發展，因為我們對了解未來幾個月業務的發展方向有了更多的信心。

Our next question is from William Stein with Truist Securities.

我們的下一個問題來自 Truist Securities 的 William Stein。

Great. It was interesting to see a couple of tuck-in acquisitions this quarter. I'm wondering if you could talk about the relative focus of that approach to capital deployment or, let's say, product development going forward relative to internal development?

偉大的。本季發生的幾起收購很有趣。我想知道您是否可以談談這種資本部署方法的相對重點，或者說，相對於內部開發而言，未來的產品開發？

So we have an internal development that works on the model that we have provided, which over the long term is the 68% gross margin, 23% operating expense, 45% operating margin. That allows for the prioritization of our internal activities and where we want to apply it for different opportunities that we have in front of us. From time to time, we find our external opportunities where the speed at which we could do something or the time that it would involve in trying to get to a solution can be a lot longer if we were to do it just organically.

因此，我們根據我們提供的模型進行了內部開發，從長遠來看，毛利率為 68%，營運費用為 23%，營運利潤率為 45%。這允許我們對內部活動進行優先排序，以及我們希望將其應用於我們面前的不同機會。有時，我們會發現外部機會，如果我們只是有機地做某事，那麼我們做某事的速度或嘗試找到解決方案所需的時間可能會更長。

And there, we have applied these tuck-in acquisitions as a way to speed up what we're able to do, consistent with the direction that we are interested in or have been following for a while. And we've done about 6 or 8 of them now in the last 4 or 5 years of time ever since. Microsemi was the last major public acquisition we did. We've done about 6 to 8 smaller ones since then.

在那裡，我們將這些隱藏式收購作為加快我們能力的一種方式，這與我們感興趣或長期以來一直遵循的方向一致。從那時起，在過去的四、五年裡，我們已經完成了大約六到八項工作。 Microsemi 是我們進行的最後一次重大公開收購。從那時起，我們已經做了大約 6 到 8 個較小的專案。

And it all is to speed up our agenda with a very tactical and a pinpoint strike on what the acquisition can do for the areas that we're driving growth in. And we will do more of those as we continue on as well. Let's say -- we've always -- we've been public. That's an essential part of our strategy.

這一切都是為了加快我們的議程，透過非常戰術性和精確的打擊收購可以為我們推動成長的領域帶來什麼。比方說，我們一直都是公開的。這是我們策略的重要組成部分。

As a follow-up, it does sound that while you anticipate revenue to grow in September, I would imagine the inventory burn isn't done at the end of June. I wonder if you can maybe help us understand when we should expect a situation where your revenue is approximately the same as in demand? In other words, when the inventory reductions will be mostly done? Do you think that's -- have I misread you and that actually does happen in June? Or do you think it's more like September or even further out?

作為後續行動，聽起來確實是，雖然您預計 9 月的收入會成長，但我認為庫存消耗在 6 月底還沒有完成。我想知道您是否可以幫助我們了解什麼時候我們應該預期您的收入與需求大致相同的情況？換句話說，去庫存時什麼時候才完成？你認為我是不是誤讀了你的意思，而這確實發生在六月？還是你認為這更像是九月或更遠的時間？

So I'll start with the response here. I mean I think the bottom line is, well, with 125,000 customers, it is impossible to know when all customers or majority of customers have kind of corrected their inventory, to what they think the right level is and that's somewhat a moving target as lead times adjust based on whatever point in the cycle that we're at. So we don't have a good answer to be able to answer your question there.

所以我將從這裡的回應開始。我的意思是，我認為底線是，對於 125,000 名客戶，不可能知道所有客戶或大多數客戶何時將其庫存修正到他們認為正確的水平，這在某種程度上是一個移動目標作為領先時間會根據我們所處的周期中的任何點進行調整。所以我們沒有一個好的答案來回答你的問題。

Obviously, give guidance for the next quarter, and we'll have more information that we can share at that time. But I think that for some customers, this inventory correction is going to last beyond this quarter. I think that absolutely is the case.

顯然，為下個季度提供指導，屆時我們將獲得更多可以分享的資訊。但我認為，對於某些客戶來說，這種庫存調整將持續到本季之後。我認為絕對是這樣。

Yes. I think many customers made their own mistakes on how they viewed their business, what they thought the prospects were. Many other customers were very thoughtful, continue to be strong players and where they're at. And as we gave you some indications of certain end markets where there's strength as well. So it's all over the place. And just as a preponderance of people who are done with their inventory correction and are now going back into buying for their consumption and/or into growth that they may be seeing. The weighted average begins to shift, and that's the weighted average that begins to shift in September.

是的。我認為許多客戶在如何看待自己的業務以及他們對前景的看法方面犯了自己的錯誤。許多其他客戶非常周到，仍然是強大的參與者和他們所處的位置。正如我們向您提供的一些跡象表明，某些終端市場也有實力。所以到處都是。正如大多數人完成了庫存調整，現在重新開始購買消費和/或他們可能看到的成長。加權平均值開始發生變化，這是九月開始變化的加權平均值。

Our next question is from David O'Connor with BNP.

我們的下一個問題來自法國巴黎銀行的大衛·奧康納。

Great. Two from my side. Maybe firstly, just on the green shoots, can you talk about them from a geographical perspective? Is it mainly China driven? And now you're seeing that continue in Europe and the U.S.? Or how would you describe it geographically?

偉大的。我這邊有兩個。也許首先，就剛萌芽的問題，您能從地理角度談談嗎？主要是中國驅動的嗎？現在您看到這種情況在歐洲和美國繼續發生嗎？或者你會如何從地理角度描述它？

Yes. So the green shoots are not limited to any one geography, not limited to any one end market, it's really across all of them. And as I mentioned, you're going to have in a geography or an end market, both customers with continued paying and other customers who are starting to look at how to get back into growth mode and what they're doing. So no specific end market or geography leading to the green shoots.

是的。因此，萌芽並不局限於任何一個地區，也不局限於任何一個終端市場，它確實遍及所有這些地區。正如我所提到的，在某個地區或終端市場中，既有持續付費的客戶，也有其他開始考慮如何恢復成長模式以及他們正在做什麼的客戶。因此，沒有特定的終端市場或地理位置可以帶來萌芽。

Okay. Got it. And then maybe just on the acquisition, the Neuronix Labs acquisition. It seems like it helps you address the AGI market for your MCUs. Can you maybe talk about the kind of content tailwind for your MCUs for AGI that this can generate? Or how much of your MCU portfolio or customers looking to add AI content in the next-gen products to kind of run those AGI models? Can you give us any more color on that would be helpful.

好的。知道了。然後也許只是收購，收購 Neuronix Labs。它似乎可以幫助您解決 MCU 的 AGI 市場問題。您能否談談這可以為 AGI 的 MCU 帶來什麼樣的內容動力？或者，您的 MCU 產品組合或客戶中有多少希望在下一代產品中添加 AI 內容以運行這些 AGI 模型？您能給我們更多的顏色嗎？

I Don't know if there's a numerical way to give you that. I think -- that's what I said -- I believe that embedded customers are thinking about how AI can be used in delivering better solutions than what they have in the past. No different from -- if you go back in the chronology from 20, 25 years ago, people added intelligence first because you could make a product better with intelligence added. Then further out in time, people added connectivity as a way to now make it even better than just adding intelligence and then they added security as a thing.

我不知道是否有一種數字方法可以給你這個。我認為——這就是我所說的——我相信嵌入式客戶正在考慮如何使用人工智慧來提供比過去更好的解決方案。沒有什麼不同——如果你回顧 20、25 年前的時間順序，人們首先添加了智能，因為添加智能可以讓產品變得更好。然後，隨著時間的推移，人們添加了連接性，以使其比僅僅添加智慧更好，然後他們添加了安全性。

And now finally, I think AI is the next leg of how people will add capability to the products to make them better. So it's a journey, and there's going to be many customers who don't need to do anything with AI. Others who are seeing the opportunity, and we'll take advantage of that in the next generation of their products. But I think you should think of it as a continuum of customers. They're all looking to innovate. AI gives them another opportunity in their platforms to be able to innovate and provide better products than the previous generations.

最後，我認為人工智慧是人們為產品添加功能以使其變得更好的下一步。所以這是一個旅程，將會有許多客戶不需要使用人工智慧做任何事。其他人看到了機會，我們將在他們的下一代產品中利用這個機會。但我認為你應該將其視為客戶的連續體。他們都在尋求創新。人工智慧為他們的平台提供了另一個機會，能夠創新並提供比前幾代更好的產品。

Our next question is from Mark Lipacis with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Mark Lipacis。

I think this is for Ganesh or Steve. I'm wondering what is the difference between the setup for Microchip's business over the next 6-months and the setup that you see at the bottom of every cycle? It seems like there's a lot of similarities, and I'm hoping you can tell me the difference.

我認為這是給加內什或史蒂夫的。我想知道 Microchip 未來 6 個月的業務設定與您在每個週期底部看到的設定有什麼區別？看起來有很多相似之處，希望你能告訴我差別。

The similarities I see are -- there is some kind of demand shock or a big inventory build and then our customers and the supply chain downstream from them, recognize that, so they decide that they're going to supply themselves out of their own inventories, they cancel orders or they take orders down and then you don't get any visibility. So you and your peers take your utilization rates down and sometimes do temporary fab shutdowns.

我看到的相似之處是——存在某種需求衝擊或大量庫存增加，然後我們的客戶和他們下游的供應鏈認識到這一點，所以他們決定用自己的庫存來供應自己，他們取消訂單或下架訂單，然後你就看不到任何可見性。因此，您和您的同行會降低利用率，有時還會臨時關閉工廠。

And then your customers have an epiphany that they overcorrected on the downside and in 3, 4 quarters from here everybody is taking their numbers up and everybody scrambled in to get components. So those are the similarities I see. What are the differences? And if you have a disagreement over those similarities, I'd love to hear that, too.

然後你的客戶就會頓悟，他們在下行方面修正過度了，從這裡開始的三、四個季度，每個人都在增加他們的數字，每個人都爭先恐後地購買組件。這些是我看到的相似之處。有什麼區別？如果您對這些相似之處有不同意見，我也很想聽聽。

Mark, I think you have answered your question. We couldn't say any better. You asked the question then you answered it, I think it's perfect.

馬克，我想你已經回答你的問題了。我們不能說更好了。你問了問題然後回答了，我認為這是完美的。

Mark, I was going to welcome you back -- and as you said, I think this is a cycle we've seen play out many times, and the elements that you answered or the elements that you proposed are there. I don't know of any differences in this one. Obviously, the length of the up cycle sometimes affects the depth of the down cycle. But other than that, the elements are very similar.

馬克，我本來想歡迎你回來的——正如你所說，我認為這是一個我們已經見過很多次的循環，你回答的要素或你提出的要素都在那裡。我不知道這方面有什麼差別。顯然，上行週期的長度有時會影響下行週期的深度。但除此之外，這些元素非常相似。

I was hoping you might say, well, the supply chain has learned or lessen over the last 3-years and recognize that you guys need to have visibility because there's a manufacturing cycle time. So is that -- is the supply chain not learned anything downstream from you? Is it -- we're just doing the same over and over again?

我希望你們可能會說，好吧，供應鏈在過去三年中已經學習或減少了，並認識到你們需要具有可見性，因為存在製造週期時間。那麼供應鏈是否沒有從你身上學到任何下游的東西？是不是──我們只是一遍又一遍地做同樣的事情？

No. So yes, I had assumed that during the depth of the constraints with all the different discussions I was having with the senior executives at our -- at our customers that they would come out of this cycle with a better understanding of how semiconductor supply works and what they would need to be to be more strategic. But I have been surprised at how quickly people have forgotten and how quickly people have returned back to the way they used to think.

不。戰略性。但令我驚訝的是，人們遺忘的速度有多快，又回到原來的思考方式的速度有多快。

Basically, they think semiconductors are like water in your tap. You turn on the tap and the water comes and you turn off the tap, and it goes away. And so I am of the belief that those lessons will have to be relearned again as we go through the cycle. And we'll see how the cycle goes. But no, there has not been any -- there are a few. But for the most part, those learnings have not carried forward.

基本上，他們認為半導體就像水龍頭裡的水。你打開水龍頭，水就來了，你關掉水龍頭，水就消失了。因此，我相信，當我們經歷這個週期時，我們必須再次重新學習這些教訓。我們將看看這個週期如何進行。但不，沒有——有一些。但在大多數情況下，這些經驗並沒有延續。

So [last one] is repeat off the bottom?

那麼[最後一個]是從底部重複的嗎？

Yes. Mark, from time to time, some people have written or talked about industry has matured, and there will not be any cycles anymore. I think all those predictions have been wrong. Industry has always been cyclic and will always be cyclic. I think our customers, our distributors, vendors, suppliers, they don't learn.

是的。馬克，時不時有人寫或談論行業已經成熟，不會再有任何循環。我認為所有這些預測都是錯誤的。產業從來都是週期性的，而且永遠都是週期性的。我認為我們的客戶、我們的經銷商、供應商、供應商，他們沒有學習。

And I think people change, new purchasing managers come in, new people come in. And as Ganesh described, the lessons are forgotten very rapidly, leading to just these cycles never going away. And this one was the most pronounced cycle, both on the upside and now we're seeing on the downside.

我認為人們會發生變化，新的採購經理進來，新的人進來。 正如加內什所描述的，教訓很快就被遺忘，導致這些循環永遠不會消失。這是最明顯的周期，既有上行趨勢，也有下行趨勢。

Yes. I was just going to make the point is I view this as inventory correction on steroids, right? I mean we had not seen our lead times for the vast majority of our products go to 52-weeks before and then they contracted over a period of 12-months down to these very short lead times that we have today.

是的。我只是想說，我認為這是對類固醇的庫存修正，對嗎？我的意思是，我們絕大多數產品的交貨時間之前都沒有達到 52 週，然後在 12 個月的時間內縮短到我們今天的交貨時間非常短。

Our next question is from Joe Moore with Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬·摩爾。

Can you give us some color on the FPGA business. And I wonder, it sounds like some pretty good growth relative to the peers for the fiscal year. Can you talk about the trajectory of that? Have you seen -- it's obviously been a tough patch for FPGAs as well. Has that looked similar to the rest of your business? Has there been an outperformance relative to that? And can you talk about your market share prospects going forward in there?

您可以為我們介紹一下 FPGA 業務嗎？我想知道，與本財年的同行相比，這聽起來像是相當不錯的成長。能談談它的發展軌跡嗎？您是否看到了——對於 FPGA 來說，這顯然也是一個艱難的補丁。這看起來與您的其他業務相似嗎？與此相關的表現是否優異？您能談談您在那裡的市場佔有率前景嗎？

Sure. So our FPGA business has, in fact, performed better than our other businesses. And in part, it's because our FPGA business has historically had a large Aerospace and Defense component and continues to. Now we have, over the last 4, 5 years, been creating the new design opportunities for FPGA in the longer term to grow in industrial and automotive and the historical end market strengths that Microchip had before we got the FPGA business.

當然。所以我們的 FPGA 業務實際上比我們的其他業務表現得更好。部分原因是我們的 FPGA 業務歷來擁有大量的航空航天和國防組件，並將繼續如此。現在，在過去的 4、5 年裡，我們一直在為 FPGA 創造新的設計機會，以實現在工業和汽車領域的長期成長，以及 Microchip 在我們獲得 FPGA 業務之前所擁有的歷史終端市場優勢。

And so this -- it is not immune to market forces and where things are going to go. But it has got a better end market mix than some of our other businesses and therefore, has performed better. And of course, we are picking up designs that in the long term that are falling off of -- Erstwhile, Xilinx and Erstwhile Altera, as they take focus away from the mid -- over many years that they have done or end-of-life products, right? Those are all creating opportunities for our FPGA business. And so I am very, very optimistic about prospects for our FPGA business.

因此，它不能免受市場力量和事物發展方向的影響。但它比我們的其他一些業務擁有更好的終端市場組合，因此表現更好。當然，我們正在挑選那些從長遠來看正在下降的設計——昔日的賽靈思和昔日的Altera，因為他們將注意力從他們多年來所做的或結束的中間轉移開——生活用品吧？這些都為我們的FPGA業務創造了機會。所以我對我們 FPGA 業務的前景非常非常樂觀。

Our next question is from Christopher Rolland with Susquehanna.

我們的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

I guess, first of all, Ganesh, like in terms of this inventory, are there any products or markets that has surprised you either that they burnt inventory and have normalized quicker than you expected or that this is going to take longer for these products or markets?

我想，首先，Ganesh，就像庫存方面一樣，是否有任何產品或市場令您感到驚訝，要么它們消耗了庫存並且正常化的速度比您預期的要快，要么這些產品需要更長的時間，或市場？

I think it not so much by product, but I think if you look at specific customers, in many cases, even in the same market, right? So we can have an end market, say, industrial. And we have examples of certain customers who have burned through their inventory and they're back asking for new orders at expedited times. We also have other customers, same industry, who are still burning through inventory and taking longer where it goes. So I think a lot depends on a customer, their market prospects, what did they do to create and grow their business and how well are they executing? And so that's really been the difference is that it's customer by customer, the stories are different.

我認為這與產品無關，但我認為如果你看看特定的客戶，在很多情況下，即使在同一個市場，對嗎？所以我們可以擁有一個終端市場，比如說工業市場。我們有一些客戶的例子，他們已經耗盡了庫存，但他們又回來要求加快新訂單。我們還有其他同一行業的客戶，他們仍在消耗庫存，並且需要更長的時間才能到達目的地。因此，我認為很大程度上取決於客戶、他們的市場前景、他們為創建和發展業務所做的事情以及他們的執行情況如何？所以真正的差別在於，每個客戶的故事都是不同的。

Yes. Understood. And then if I'm hearing you correctly, you think June is the bottom. A lot of that is inventory based. I'd like an idea of how you're looking at the inventory position in September at your customers more generally? Do you think we can get back to seasonal trends in September and going forward? Or is there still this inventory drag overall?

是的。明白了。如果我沒聽錯的話，你認為六月是底部。其中很多是基於庫存的。我想了解您如何更全面地了解客戶 9 月的庫存狀況？您認為我們可以回到 9 月和未來的季節性趨勢嗎？或者總體上仍然存在這種庫存拖累嗎？

No, I think there's going to be customers at different points in the correction cycle. Some will have corrected and moved on. Others will still be correcting. So I think seasonality is perhaps one of the things which you need a level of normalcy for some period of time before you can say, okay. We now have all these variables that have been taken out. So I can't say we have seasonality in the September quarter. I can say that incrementally, on a weighted average basis, there are more customers who are going to be out of their inventory correction, but not that they're all done.

不，我認為在修正週期的不同階段會有客戶。有些人會糾正並繼續前進。其他人仍然會糾正。所以我認為季節性可能是你需要在一段時間內保持正常水平才能說“好吧”的事情之一。現在我們已經刪除了所有這些變數。所以我不能說九月季有季節性。我可以說，在加權平均的基礎上，越來越多的客戶將不再需要進行庫存調整，但並不是說他們都已經完成了。

Our next question is from Tore Svanberg with Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Just one quick follow-up. Ganesh, you said that you still need quite a bit of turns this quarter. Just wondering what is the turns requirement? And how does that compare with the previous cycle troughs?

只需一個快速跟進。 Ganesh，你說過本季你仍然需要相當多的輪替。只是想知道轉彎要求是什麼？與之前的周期低谷相比如何？

So we are not going to break out the amount of turns that are required, but we do have turns and take to meet our guidance, and our guidance is obviously to have another down quarter. But lead times are short. We are getting these requests for pull-in. I don't have a good comparison to give you in terms of prior cycles. If this turns out to be the bottom for us, which we believe it will, we can probably give some commentary when we talk about our September guidance as we kind of hit and move through that bottom.

因此，我們不會透露所需的輪次數量，但我們確實有輪次和需要滿足我們的指導，而我們的指導顯然是另一個下降的季度。但交貨時間很短。我們收到了這些拉入請求。我沒有很好的比較可以給你之前的週期。如果這最終成為我們的底部（我們相信它會如此），那麼當我們談論 9 月的指導時，我們可能會發表一些評論，因為我們有點觸及並突破了底部。

So one of the things which is more difficult to do is most people talk about turns in a normal environment where there isn't inventory out there. And it's harder to -- we can say, hey, it turns our x percent from a historical basis. But when there is inventory, we know those turns aren't going to show up because people will burn though inventory before they begin to place it. And I think that's some of the hesitation we have and trying to provide some insight where we know there's a lot of uncertainty.

因此，更難做的事情之一是大多數人在沒有庫存的正常環境中談論週轉。而且更難的是——我們可以說，嘿，它從歷史基礎上改變了我們的百分之x。但是，當有庫存時，我們知道這些週轉不會出現，因為人們在開始放置庫存之前會燒掉庫存。我認為這是我們的一些猶豫，並試圖在我們知道存在許多不確定性的情況下提供一些見解。

What we have done is done the best of our assessment of what those are going to be, where they're going to be and build it into the guidance. And so I think that's the best way to think about it is that we have taken into account the risks that are present from inventory that would otherwise cause headwinds to turns in the quarter.

我們所做的就是對這些內容將是什麼、它們將在哪裡進行最好的評估，並將其納入指南中。因此，我認為最好的思考方式是，我們已經考慮到庫存帶來的風險，否則這些風險可能會導致本季出現逆轉。

Our next question is from Vivek Arya with Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

Quick follow up, I just wanted to clarify what is the contribution of the acquisitions in the June quarter or in fiscal '25? And then, Ganesh, back to the September quarter, I think you did say that you expect it to grow. I understand that it's hard to put a seasonal number on it. But based on what you have seen in prior downturns, just the fact that Microchip has gone down so much from peak to trough, should we also expect kind of sharper recovery back when you do start recovering?

快速跟進，我只是想澄清收購對 6 月季度或 25 財年的貢獻是什麼？然後，Ganesh，回到九月季度，我想您確實說過您預計它會增長。我知道很難給出季節數據。但根據您在先前的經濟低迷中所看到的情況，事實上，Microchip 從高峰到低谷的跌幅如此之大，我們是否也應該期待當您開始復甦時會出現更急劇的復甦？

So to answer your first question, these are small tuck-in acquisitions. They're intended to accelerate our effort on design-ins and design wins and all of that. So they don't have any revenue contribution in the June quarter or in the September quarter, for that matter. In terms of the revenue and what happens as the correction happens, yes, you should think that at some point, and I can't tell you is it in September or is it in December, you will see -- we will see a sharper recovery. That's how it has played itself out in many other cycles as well.

因此，回答你的第一個問題，這些都是小型收購。它們的目的是加快我們在設計導入和設計獲勝等方面的努力。因此，他們在六月季度或九月季度沒有任何收入貢獻。就收入以及調整發生時會發生什麼而言，是的，你應該認為在某個時候，我不能告訴你是在 9 月還是 12 月，你會看到 - 我們會看到一個更尖銳的情況恢復。這也是它在許多其他週期中的表現。

And there are 2 stages to it. There's the first stage, which is just people needing to get back to -- they've burned through most of the inventory and they need to get back to at least buying to consumption. And then there's a second phase, which is what is the macro doing? And is the macro driving further growth for them above just what their flattened consumption line alone might tell us. And I think all of that, if you look forward into a likely environment over the next 12 months, should give us a sharper recovery.

它有兩個階段。第一階段是人們需要回到——他們已經消耗了大部分庫存，他們需要至少恢復到購買消費的狀態。然後是第二階段，就是宏在做什麼？宏觀經濟是否會推動他們進一步成長，而不僅僅是他們的消費線扁平化所告訴我們的。我認為，如果你展望未來 12 個月可能出現的環境，所有這些都應該會讓我們更快復甦。

This concludes our question-and-answer session. I would like to hand the floor back over to Ganesh Moorthy for any closing comments.

我們的問答環節到此結束。我想將發言權交還給 Ganesh Moorthy，讓其發表最後評論。

Great. I want to thank everybody for joining us on the call. I know we ran over a little bit, but I appreciate the questions, and we look forward to seeing and talking to many of you in the coming days as well as many of the conferences that are coming up. Thank you.

偉大的。我要感謝大家加入我們的電話會議。我知道我們有點忙不過來了，但我很感謝大家提出的問題，我們期待在未來幾天以及即將舉行的許多會議上見到你們並與你們交談。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。