微晶片科技 (MCHP) 2025 Q1 法說會逐字稿

Greetings and welcome to the Microchip first-quarter fiscal year 2025 financial results conference call. (Operator Instructions). As a reminder, this conference is being recorded.

歡迎參加 Microchip 2025 財年第一季財務業績電話會議。 （操作員說明）。提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, Eric Bjornholt, CFO. Please go ahead.

現在我很高興向您介紹主持人，財務長 Eric Bjornholt。請繼續。

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.

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。

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.

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.

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。

I will comment on our first-quarter fiscal year 2025 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.

我將評論我們 2025 財年第一季的財務表現。然後，加內什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資訊。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、毛利率和營運費用。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，這是基於我們的收購活動、基於股份的薪酬以及我們的收益新聞稿中所述的某些其他調整之前的費用，在我們網站上的對帳。

Net sales in the June quarter were $1.241 billion, which was down 6.4% 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 just below the midpoint of our guidance at 59.9%, including capacity underutilization charges of $36 million as we continue to manage production activities to adjust to the challenging business conditions.

六月季度的淨銷售額為 12.41 億美元，比上一季下降 6.4%。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。以非公認會計原則計算，毛利率略低於我們指引的中點 59.9%，其中包括 3,600 萬美元的產能利用率不足費用，因為我們繼續管理生產活動以適應充滿挑戰的業務環境。

Operating expenses were at 28.4% of net sales and operating income was 31.5%. Non-GAAP net income was $289.9 million and non-GAAP earnings per diluted share was $0.53, which was $0.01 ahead of the midpoint of our guidance.

營業費用佔淨銷售額的 28.4%，營業收入佔 31.5%。非 GAAP 淨利潤為 2.899 億美元，非 GAAP 攤薄每股收益為 0.53 美元，比我們指引的中位數高出 0.01 美元。

On a GAAP basis in the June quarter, gross margins were 59.4%. Total operating expenses were $517.8 million, and included acquisition intangible amortization of $123 million, special charges of $2.6 million, share-based compensation of $37.4 million, and $1.8 million of other expenses. GAAP net income was $129.3 million, resulting in $0.24 in earnings per diluted share.

以 GAAP 計算，第二季的毛利率為 59.4%。總營運費用為 5.178 億美元，其中包括收購無形攤銷 1.23 億美元、特殊費用 260 萬美元、股權激勵 3,740 萬美元以及其他費用 180 萬美元。 GAAP 淨利潤為 1.293 億美元，稀釋後每股收益為 0.24 美元。

Our non-GAAP cash tax rate was 13% in the June quarter, which was in line with our guidance. Our non-GAAP tax rate in fiscal year '25 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.

我們第二季的非 GAAP 現金稅率為 13%，符合我們的指引。我們 25 財年的非公認會計原則稅率預計約為 13%，這不包括過渡稅和與上一財年應計稅款相關的任何稅務審計結算。

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 June 30, 2024, was $1.308 billion, which was down $8 million from the end of the March 2024 quarter. We had 237 days of inventory at the end of the June quarter, which was up 13 days from the prior quarter's levels as a result of a lower dollar value of quarterly cost of goods sold from lower sequential revenue.

截至 2024 年 6 月 30 日，我們的庫存餘額為 13.08 億美元，比 2024 年 3 月季度末減少了 800 萬美元。截至 6 月季度末，我們的庫存為 237 天，比上一季的水準增加了 13 天，這是由於連續收入下降導致季度銷售商品成本美元價值下降。

At the midpoint of our September 2024 quarter guidance, we would expect inventory dollars to be up modestly and days of inventory to increase. 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 19 days of inventory at the end of June.

在我們 2024 年 9 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。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，這些最後一次購買代表了 6 月底 19 天的庫存。

Inventory at our distributors in the June quarter was at 43 days, which was up two days from the prior quarter's level. Distribution took down their inventory holdings in the June quarter as distribution sell-through was about $85 million higher than distribution sell in.

6 月季度我們經銷商的庫存為 43 天，比上一季的水準增加了兩天。由於分銷銷售額比分銷銷售額高出約 8,500 萬美元，分銷管道在 6 月季度減少了庫存。

Our cash flow from operating activities was $377.1 million in the June quarter, adjusted free cash flow was $301.3 million in the June quarter. As of June 30, our consolidated cash and total investment position was $315.1 million. Our total debt increased by $179 million in the June quarter, and our net debt increased by $183.6 million.

我們六月季度的營運活動現金流量為 3.771 億美元，調整後的自由現金流量為 3.013 億美元。截至 6 月 30 日，我們的綜合現金和總投資部位為 3.151 億美元。在第二季度，我們的總債務增加了 1.79 億美元，淨債務增加了 1.836 億美元。

The increase in debt was impacted by our refinancing activities in the quarter which included issuing a 0.75% six-year convertible bond, for which we paid $105 million for a 75% cap call to provide some protection from future equity dilution from stock price appreciation. Our adjusted EBITDA in the June quarter was $456.2 million and 36.8% of net sales,

債務增加受到我們本季再融資活動的影響，其中包括發行0.75% 的六年可轉換債券，為此我們支付了1.05 億美元的75% 上限要求，以提供一些保護，防止未來因股價上漲而稀釋股權。我們六月季度調整後的 EBITDA 為 4.562 億美元，佔淨銷售額的 36.8%，

Our trailing 12-month adjusted EBITDA was $2.908 billion. Our net debt-to-adjusted EBITDA was 2.02 times as of June 30, 2024, up from 1.29 times at June 30, 2023. Capital expenditures were $72.9 million in the June quarter.

我們過去 12 個月的調整後 EBITDA 為 29.08 億美元。截至 2024 年 6 月 30 日，我們的淨債務與調整後 EBITDA 為 2.02 倍，高於 2023 年 6 月 30 日的 1.29 倍。

Our expectations for capital expenditures for fiscal year 2025 is about $175 million and is more heavily weighted in the first quarter of fiscal year 2025 as we had worked with our suppliers to push out capital that was originally planned for delivery last fiscal year. Depreciation expense in the June quarter was $43 million.

我們對 2025 財年資本支出的預期約為 1.75 億美元，並且在 2025 財年第一季的權重更大，因為我們與供應商合作推出了原計劃在上財年交付的資本。六月季度的折舊費用為 4,300 萬美元。

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

我現在將其轉交給 Ganesh，以發表他對 6 月季度業務業績的評論以及我們對 9 月季度的指導。加內什。

Thank you, Eric, and good afternoon, everyone. Our June quarter results were consistent with our guidance, with net sales down 6.4% sequentially as we continue to navigate through a major inventory correction. Non-GAAP gross margin came in just under the midpoint of our guidance of 59.9%, while non-GAAP operating margin was at the midpoint of our guidance at 31.5% as we continued our strong expense control programs. Our consolidated non-GAAP diluted earnings per share came in $0.01 ahead of guidance at $0.53 per share.

謝謝你，埃里克，大家下午好。我們 6 月季度的業績與我們的指導一致，隨著我們繼續進行重大庫存調整，淨銷售額環比下降 6.4%。隨著我們繼續實施強有力的費用控制計劃，非 GAAP 毛利率略低於我們指導價值 59.9% 的中點，而非 GAAP 營業利潤率則處於我們指導值 31.5% 的中位數。我們的綜合非公認會計準則攤薄每股收益比指引每股 0.53 美元高出 0.01 美元。

Our sequential revenue decline resulted in June quarter adjusted EBITDA dropping. And as a result, our net leverage rose to 2.02x. We expect our net leverage to rise modestly for a few more quarters as trailing 12-month adjusted EBITDA drops when replacing stronger prior year quarters with weaker, current year quarters.

我們的連續收入下降導致 6 月季度調整後 EBITDA 下降。結果，我們的淨槓桿率升至 2.02 倍。我們預計我們的淨槓桿率將在接下來的幾個季度內小幅上升，因為用較弱的本年季度取代較強勁的去年季度後，過去 12 個月調整後的 EBITDA 會下降。

However, our cash generation continues to be solid, and we remain committed to our capital return plan. Our capital return to shareholders in the September quarter will increase to 92.5% of our June 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.

然而，我們的現金產生能力仍然強勁，我們仍然致力於我們的資本回報計劃。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9 月季度向股東返還的資本回報率將增至6 月季度調整後自由現金流的92.5% 。

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

我感謝我們的全球團隊在我們繼續應對困難的環境時所給予的支持、辛勤工作和勤奮。並專注於我們認為有助於我們長期發展的行動。 7 月初，我們宣布進入 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。

This extends 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.

這將我們強大的 32 位元嵌入式微處理器產品組合擴展到更高的效能和增強的功能，同時保留了 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 to 64 bit as well as FPGAs with a common development to 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）以及具有共同開發生態系統的FPGA 的公司，這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 June quarter and the general business environment. All regions of the world and most of our end markets exhibited varying degrees of weakness. The exceptions were aerospace and defense, which was stable and the artificial intelligence subset of data centers, which continue to be strong.

現在對六月季度和整體商業環境進行一些分析。世界所有地區和我們的大部分終端市場都表現出不同程度的疲軟。例外的是航空航太和國防領域，它們保持穩定，而資料中心的人工智慧子集則繼續保持強勁。

Our business in Europe and America, which are dominated by industrial and automotive markets were particularly weak on the heels of a very weak March quarter. Our broad base of customers continue to manage their inventory tightly and adjust their business plans in the midst of a weak macro environment for manufacturing, high interest rates, very short lead times, and an uncertain business outlook.

我們在以工業和汽車市場為主的歐洲和美洲業務在三月季度非常疲軟之後尤其疲軟。在製造業宏觀環境疲軟、利率高、交貨時間非常短以及業務前景不確定的情況下，我們廣大的客戶群繼續嚴格管理庫存並調整業務計劃。

This combination of factors we believe is driving inventory destocking as well as reductions in target inventory levels in multiple areas at our direct customers, at contract manufacturers and distributors who buy from us, at our indirect customers who buy through our distributors, and in many cases, at our customers' customers.

我們認為，這些因素的結合正在推動庫存去庫存，並降低我們的直接客戶、從我們這裡購買的合約製造商和分銷商、透過我們的經銷商購買的間接客戶等多個領域的目標庫存水準。 ，在我們客戶的客戶處。

The early signs of green shoots in our business we saw in February, March, and April have continued to progress, although at an uneven pace, with bookings up sequentially in some months and relatively flat sequentially in other months.

我們在 2 月、3 月和 4 月看到的業務復甦的早期跡象仍在繼續取得進展，儘管進展不平衡，某些月份的預訂量連續增加，而其他月份的預訂量則相對持平。

Although quarterly bookings grew close to 50% in the June quarter, as compared to the March quarter, overall bookings were still below where we would like to see them. Bookings, however, continue to age over a shorter period of time. And we continue to see many requests for expedites of new orders and shipment date pull-ins for previously placed orders. Request for cancellations and pushouts continue to subside.

儘管 6 月季度的季度預訂量增長了近 50%，但與 3 月份季度相比，整體預訂量仍低於我們希望看到的水平。然而，預訂在較短的時間內繼續老化。我們繼續看到許多要求加快新訂單和提前下達訂單的發貨日期的請求。取消和推遲的請求繼續減少。

Our average lead time continue to be about eight weeks or less, while the short lead times are resulting in reduced near-term visibility as customers delay placing orders since they have high confidence that supply is readily available. We also believe short lead times during a period of business uncertainty are the best way to help customers navigate the environment successfully and improve the quality of backlog placed with us.

我們的平均交貨時間仍然約為八週或更短，而較短的交貨時間導致近期可見度降低，因為客戶對供應隨時可用而推遲下訂單。我們也相信，在業務不確定時期，縮短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。

We have adjusted our operational systems to adapt to this uncertain environment and preposition semi-finished and finished goods inventory as best as we can to accept and ship the turns orders we need this quarter. Given the severity of the down cycle, our factories around the world are continuing to run at lower utilization rates in order to help control inventory levels.

我們調整了我們的營運系統，以適應這種不確定的環境，並儘可能預先儲備半成品和成品庫存，以接受和運送本季所需的輪換訂單。鑑於經濟下行週期的嚴重性，我們在世界各地的工廠繼續以較低的利用率運行，以幫助控制庫存水準。

Our internal capacity expansion actions remain paused. We expect our capital investments in fiscal '25 and likely in fiscal '26 as well, will be low as we will use the inventory we have invested in as well as our underutilized capacity to support the next up cycle.

我們的內部產能擴張行動仍處於暫停狀態。我們預計我們在 25 財年以及可能在 26 財年的資本投資將會較低，因為我們將利用已投資的庫存以及未充分利用的產能來支持下一個上升週期。

We're also prepared for the long-term growth of our business. On the one hand, in partnership with our foundry and outsourced assembly and test partners. And on the other hand, for our internal factories, with the optionality of deploying capital, which we have purchased but not yet placed into service.

我們也為業務的長期成長做好了準備。一方面，與我們的代工廠以及外包組裝和測試合作夥伴合作。另一方面，對於我們的內部工廠來說，我們可以選擇部署資本，我們已經購買了但尚未投入使用的資本。

While neither we, nor our customers know the shape of the recovery in the coming months, we do expect it to arrive advertise in all prior semiconductor cycle. And we believe we are well prepared for the things we can control to exploit whatever the market recovery looks like.

雖然我們和我們的客戶都不知道未來幾個月復甦的情況，但我們確實預計它會在之前的所有半導體週期中出現。我們相信，無論市場復甦的情況如何，我們都已經做好了充分的準備，可以控制我們可以利用的事情。

On the chip stack front, we continue to work through a number of challenges with the chips office and other government departments in regards to the grants. While the investment tax credit process has been relatively straightforward, and we are greatly appreciative of this benefit. The journey to receive grants has taken much longer and been more complicated than we expected.

在晶片堆疊方面，我們繼續與晶片辦公室和其他政府部門一起解決有關補助金的一系列挑戰。雖然投資稅收抵免流程相對簡單，但我們非常讚賞這種好處。獲得資助的過程比我們預期的要長得多，也更複雜。

Recall, we announced a preliminary memorandum of terms in early January 2024, and supported the completion of diligence by March. Given that we align extremely well with the US government's goals of shoring up semiconductor supply for national security and industrial security, it would be unfortunate if a pragmatic agreement on the conditions attached to the grants cannot be reached. We continue to persevere through the challenges by collaborating with the chip's office while remaining resolute that whatever agreement we reach must also be consistent with our business values.

回想一下，我們在 2024 年 1 月初宣布了初步條款備忘錄，並支持在 3 月完成盡職調查。鑑於我們與美國政府為國家安全和工業安全而支持半導體供應的目標非常一致，如果無法就贈款所附條件達成務實協議，那將是不幸的。我們將繼續與晶片辦公室合作，克服挑戰，同時堅定地認為，無論我們達成什麼協議，都必須符合我們的商業價值觀。

Before we get into our guidance, I note about the strength of our design in activity. After two years-plus of dealing with shortages and redeploying their innovation resources towards mitigating the impact of shortages, our customers over the last year plus have returned to prioritizing their innovation projects. The result is a strong design-in pipeline for us across all end markets, mega trends, and key customers, amplified by our total system solutions approach to take advantage of our broad portfolio of solutions.

在我們進入指導之前，我注意到我們的設計在活動中的優勢。經過兩年多的時間處理短缺問題並重新部署創新資源以減輕短缺的影響，我們的客戶在過去一年多裡重新開始優先考慮他們的創新項目。結果是我們在所有終端市場、大趨勢和關鍵客戶中建立了強大的設計管道，並透過我們的整體系統解決方案方法加以放大，以利用我們廣泛的解決方案組合。

The impact of this growing design pipeline is muted in the current environment where excess inventory gets most of the attention, and design-in activity takes time to gestate into production. But design win momentum is the engine of long-term growth that we have always focused on and which we expect will drive above-market long-term growth.

在當前環境中，過剩的庫存最受關注，而且設計活動需要時間才能進入生產，而這種不斷增長的設計管道的影響微乎其微。但設計獲勝動力是我們一直關注的長期成長的引擎，我們預計它將推動高於市場的長期成長。

Now let's get into our guidance for the September quarter. While we continue to see a number of green shoots in our business indicators, we do need turns orders within the quarter to meet our guidance, operating in a high turns environment has historically been normal for Microchip, but it's challenging to predict during abnormal times as we're in today.

現在讓我們來看看九月季度的指導。雖然我們的業務指標繼續出現一些萌芽，但我們確實需要在本季度內增加訂單才能滿足我們的指導，對於Microchip 來說，在高週轉環境中運營歷來都是正常的，但在異常時期進行預測卻很困難，因為我們今天在。

We are, however, forecasting strong signs of growth in our data center business beyond the artificial intelligence subset after several quarters of weakness. This is effectively another green shoot. Taking all the factors we have discussed on the call today into consideration, especially the very low backlog visibility we are faced with, we expect our net sales for the September quarter to be between $1.12 billion and $1.18 billion. We expect our non-GAAP gross margin to be between 58.5% and 59.5% of sales.

然而，我們預測，在經歷幾季的疲軟之後，我們的資料中心業務將在人工智慧子集之外出現強勁的成長跡象。這其實是另一個萌芽。考慮到我們今天在電話會議上討論的所有因素，特別是我們面臨的積壓情況非常低，我們預計 9 月季度的淨銷售額將在 11.2 億美元至 11.8 億美元之間。我們預計非 GAAP 毛利率將在銷售額的 58.5% 至 59.5% 之間。

We expect non-GAAP operating expenses to be between 30% and 31% of sales. We expect non-GAAP operating profit to be between 27.5% and 29.5% of sales, and we expect our non-GAAP diluted earnings per share to be between $0.40 and $0.46.

我們預計非 GAAP 營運費用將佔銷售額的 30% 至 31%。我們預計非 GAAP 營業利潤將在銷售額的 27.5% 至 29.5% 之間，我們預計非 GAAP 攤薄每股收益將在 0.40 美元至 0.46 美元之間。

This multiyear semiconductor cycle for Microchip and for the overall semiconductor industry has been like none other we had seen. It started with COVID-related supply and demand disruptions in the March quarter of 2020, which then continued for many months. This was followed by extreme product shortages and result in supply chain challenges later that year and for several quarters thereafter. And finally, a substantial inventory correction over the last several quarters.

對於 Microchip 和整個半導體產業來說，這個多年的半導體週期是我們從未見過的。它始於 2020 年第三季與新冠疫情相關的供需中斷，隨後持續了數月。隨後出現了嚴重的產品短缺，並導致當年晚些時候以及此後幾季的供應鏈挑戰。最後，過去幾季的庫存大幅調整。

We recognize that on a peak to trough basis, our revenue decline has been sharper than many of our competitors. Some of this variance reflects the differences in end market exposure as this cycle has impacted different end markets at different times. Some of the variance is due to differences in non-cancellable, non-reschedulable programs implemented by us and our competitors. And finally, some of the variance is driven by differences in the relative size of business transacted either directly or through the channel.

我們體認到，從高峰到低谷來看，我們的營收下降幅度比許多競爭對手都要嚴重。其中一些差異反映了終端市場敞口的差異，因為該週期在不同時間影響了不同的終端市場。部分差異是由於我們和我們的競爭對手實施的不可取消、不可重新安排的計劃的差異造成的。最後，部分差異是由直接或透過通路交易的業務相對規模的差異所造成的。

While peak-to-trough revenue performance is relevant, we believe a better, longer-term indicator is a comparison of the cumulative revenue generated through the entire cycle. Assuming the December quarter of 2019 was the last unaffected or normal quarter, Microchip's cumulative revenue over the next 19 quarters, inclusive of our guidance from -- for the September 2024 quarter when indexed to the December quarter of 2019 shows very comparable performance between us and our competitors.

雖然收入表現從高峰到低谷是相關的，但我們認為更好、更長期的指標是對整個週期產生的累積收入進行比較。假設2019 年12 月季度是最後一個未受影響或正常的季度，則Microchip 在接下來的19 個季度的累積收入（包括我們對2024 年9 月季度的指導，當索引到2019 年12 月季度時）顯示我們和我們的競爭對手。

This is, of course, excluding the impact of acquisitions for everyone. The revenue peaks and troughs were different for each company. We believe for the factors that we mentioned earlier. However, when we're looking -- when looking at the cumulative 19-quarter revenue, essentially the area under the revenue curve is what that would represent. While the journey for each company was different that destination was very similar after 19 quarters.

當然，這不包括收購對所有人的影響。每家公司的收入高峰和低谷都不同。我們相信我們之前提到的因素。然而，當我們查看 19 個季度的累積收入時，基本上就是收入曲線下的面積。雖然每家公司的歷程各不相同，但 19 個季度後的目的地非常相似。

This would suggest that Microchip may be positioned for a sharper growth in the coming quarters, although we're not ready to predict the shape of that recovery at this time. My point is that rather than be focused on peak-to-trough performance alone, it seems prudent to consider the area under the curve of cumulative revenue performance as well. We believe the fundamental characteristics of growth, profitability, and cash generation of our business remain intact.

這表明 Microchip 可能會在未來幾季實現更大幅度的成長，儘管我們目前還沒有準備好預測復甦的形式。我的觀點是，與其只關注峰谷業績，不如考慮累積收入業績曲線下的區域，這似乎是謹慎的做法。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。

We are confident that our solutions remain the engine of innovation for the application of end markets we serve. We remain committed to executing our strategic imperatives, which we believe will deliver sustained results and substantial shareholder value.

我們相信，我們的解決方案仍然是我們所服務的終端市場應用的創新引擎。我們仍然致力於執行我們的策略要務，我們相信這將帶來持續的成果和巨大的股東價值。

And finally, at a time of macro uncertainty, we remain focused on the things we can control to create long-term shareholder value. With that, let me pass the baton to Steve to talk more about our cash generation to shareholders. Steve?

最後，在宏觀不確定性的時期，我們仍然專注於我們可以控制的事情，以創造長期股東價值。接下來，讓我將接力棒交給史蒂夫，讓他向股東多談我們的現金產生情況。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 10.7% from the year-ago quarter to a record $0.454 per share.

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 10.7%，達到創紀錄的每股 0.454 美元。

During the last quarter, we purchased $72.7 million of our stock in the open market. We also paid out $242.6 million in dividends. Thus, the total cash return was $315.3 million. This quarter, our total cash return was reduced by the cash outlays for the recent acquisition of VSI and Neuronix.

上個季度，我們在公開市場購買了 7,270 萬美元的股票。我們還支付了 2.426 億美元的股息。因此，現金回報總額為 3.153 億美元。本季度，我們的總現金回報因最近收購 VSI 和 Neuronix 的現金支出而減少。

When you combine the dividend buyback and acquisition-related cash outlays, this amount was 87.5% of our actual adjusted free cash flow of $389.9 million during the March 2024 quarter. Our net leverage at the end of June 2024 quarter was 2.02 times.

如果將股利回購和收購相關的現金支出合併起來，這筆金額佔 2024 年 3 月季度實際調整後自由現金流 3.899 億美元的 87.5%。截至 2024 年 6 月季末，我們的淨槓桿率為 2.02 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 $4.6 billion to shareholders through June 30, 2024, by a combination of dividends and share buybacks.

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 6 月 30 日，我們透過股利和股票回購的方式總共向股東返還了 46 億美元。

During this period, our share buyback in the open market was approximately 31.2 million shares representing approximately 5.8% of our shares outstanding. In the current September quarter, we will use the adjusted free cash flow level from the June quarter to target the amount of cash returned to shareholders.

在此期間，我們在公開市場回購了約3,120萬股股票，約占我們已發行股票的5.8%。在當前九月季度，我們將使用六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。

Our adjusted free cash flow for the June quarter was $301.3 million. So our target return to shareholders would be 92.5% of that amount, minus a small payment made for acquisitions. Our resulting cash return to shareholders will be approximately $261 million. Out of that amount, dividends are expected to be approximately $243.8 million, and our expected stock buyback will be approximately $17.2 million.

6 月季度調整後的自由現金流為 3.013 億美元。因此，我們對股東的目標回報將是該金額的 92.5%，減去一小筆收購費用。我們最終為股東帶來的現金回報約為 2.61 億美元。其中，預計股息約 2.438 億美元，我們預期股票回購約 1,720 萬美元。

Going forward, we plan to continue to increase our adjusted 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 through dividends and share buybacks. That will take two more quarters and we expect that dividend over the long run will represent approximately 50% of our cash returned.

展望未來，我們計劃繼續每季將調整後的自由現金流回報增加 500 個基點，直到我們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。這還需要兩個季度的時間，我們預計長期股息將占我們現金回饋的約 50%。

We also announced today that effective at the close of business on August 20, which is the date of our Annual Shareholders' Meeting, I will transition from Executive Chair to being the Non-Executive Chair of the Board. In this role, I will continue to be a resource to Ganesh and to all of Microchip. I want to thank our investors and our employees. It was my highest honor to have served you for 34 years.

我們今天也宣布，自 8 月 20 日收盤之日（年度股東大會召開之日）起，我將從執行主席轉任董事會非執行主席。在此職位上，我將繼續為 Ganesh 和整個 Microchip 提供資源。我要感謝我們的投資者和員工。為你們服務34年是我最高的榮幸。

Let me now turn it back to Ganesh.

現在讓我把話題轉回加尼什身上。

Thank you, Steve. On behalf of the Microchip leadership team and all of our employees worldwide, thank you so much on the bottom of our hearts for your 34 years of service to Microchip. In your Non-Executive Chair role, you will continue to be an important resource for me personally and for other Microchip team members as well.

謝謝你，史蒂夫。我謹代表 Microchip 領導團隊和全球所有員工，衷心感謝您 34 年來為 Microchip 提供的服務。在您擔任非執行主席期間，您將繼續成為我個人以及其他 Microchip 團隊成員的重要資源。

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

史黛西，請您投票提問好嗎？

(Operator Instructions) Tim Arcuri, UBS.

（操作員說明） Tim Arcuri，UBS。

Ganesh, you talked about orders being up 50% sequentially, but you said that they're still weak. Can you talk about that a little more? Is that -- are you just saying that book-to-bill is still well below 1? Is that the point there?

Ganesh，您談到訂單環比增長了 50%，但您表示訂單仍然疲軟。能再多談一下嗎？您只是說訂單出貨比仍遠低於 1 嗎？這是重點嗎？

Yes. I wouldn't say well below 1 book-to-bill is below 1. It has bookings have been growing. They've been growing unevenly between the months. So it's on the right track, just not as fast as we would like it to.

是的。我不會說遠低於 1 的預訂到帳單低於 1。幾個月之間它們的生長並不均勻。所以它走在正確的軌道上，只是沒有我們希望的那麼快。

And coming in they're aging faster. So that also helps.

而且進來後他們老得更快。所以這也有幫助。

Got it. Got it. And then can you talk a little bit more about -- you had talked about the green shoots, and it sounds like they kind of stalled out a little bit. Can you talk about maybe when that happened in the quarter? Was it like the last month of the quarter?

知道了。知道了。然後你能再多談談嗎——你已經談到了綠芽，聽起來它們有點停滯了。您能談談本季發生的情況嗎？就像本季的最後一個月嗎？

And has it continued through the first month of this quarter, just -- and maybe the end markets where that's actually happened.

這種情況是否持續到了本季的第一個月，也許是實際發生的終端市場。

So at the end of May, I think we were at a public conference where we had said, hey, bookings are flattish for May versus April, June got a little bit better. I think it's just through the quarter week to week. I think these are short-term indicators. We have to look at it kind of on a longer-term basis, how is it evolving? So -- but yes, June did not have the same momentum that we would have expected.

所以在五月底，我想我們在一次公開會議上說過，嘿，五月的預訂量與四月持平，六月的情況有所好轉。我認為這只是每週一個季度的情況。我認為這些都是短期指標。我們必須從更長遠的角度來看待它，它是如何演變的？所以——但是，是的，六月並沒有我們預期的那樣的勢頭。

If this was continuing at a consistent pace. And so that's the difference between what we saw in April versus May versus June. It just didn't have a consistency throughout the quarter. And there's no particular end market thing.

如果這種情況繼續以一致的速度進行。這就是我們在四月、五月和六月看到的差異。只是整個季度的表現並不穩定。而且沒有特定的終端市場。

The two end markets I referred to, stability in aerospace and defense, strengthen the data center market. And of course, we're indicating that it's not only the AI subset, but going forward for September and December, we're seeing strength across the data center markets that we're in.

我提到的兩個終端市場，即航空航太和國防領域的穩定，增強了資料中心市場。當然，我們表明這不僅僅是人工智慧子集，而且在 9 月和 12 月，我們看到了我們所在的資料中心市場的實力。

Christopher Rolland, Susquehanna International Group.

克里斯多福羅蘭，薩斯奎哈納國際集團。

Mine is around utilizations and where we go from here. So I think you guys had some shutdowns in June? Are you expecting to continue those into September? And then you also talked about external wafer supply agreements, would you expect those negotiations to go well and to push those out? Or might those effect as well?

我的目標是圍繞著利用率以及我們接下來的方向。所以我認為你們六月有一些停工？您希望將這些活動持續到九月嗎？然後您也談到了外部晶圓供應協議，您是否希望這些談判能夠順利進行並推動這些協議的落實？或者這些也可能有效果嗎？

So I'll start with internal utilization. So we are not planning on having another two-week shutdown for our wafer fabs in the September quarter. We do not expect production value out of the fabs to be much different quarter-on-quarter. We continue to have attrition and had to lower starts because of that. but we'll not be having another two-week shutdown.

所以我將從內在利用開始。因此，我們不打算在九月季度再次關閉晶圓廠兩週。我們預計晶圓廠的產值環比不會有太大差異。我們仍然存在人員流失，因此不得不降低開工率。但我們不會再經歷兩週的停工。

And in our assembly and test areas, we will continue to have days off for those activities to manage our finished goods assembly and test out appropriately. Ganesh, do you want to comment on foundry?

在我們的組裝和測試區域，我們將繼續為這些活動提供休息日，以適當管理我們的成品組裝和測試。 Ganesh，您想對鑄造廠發表評論嗎？

Yes. We have continued to work with our foundry partners on how to match the wafers coming into the demand picture as it changes the degree of how we have worked that out has a different results at different semi -- foundry partners. But by and large, we are working through those with business arrangements to make sure that we are not receiving substantially more wafers than what we can use with the exception of the last time buy that Eric referred to, where factories are either closing down or processes are being end of life where we are buying because those products often have extremely high gross margins, and it behooves us to be able to take the inventory and over many years, I realize very high gross margin on those parts.

是的。我們繼續與我們的代工合作夥伴合作，研究如何匹配進入需求情況的晶圓，因為這改變了我們的計算方式，不同的半代工夥伴會產生不同的結果。但總的來說，我們正在與那些有業務安排的人合作，以確保我們收到的晶圓不會遠遠多於我們可以使用的數量，除了艾瑞克提到的上次購買的情況外，那裡的工廠要么關閉，要么加工我們購買的產品即將報廢，因為這些產品通常具有極高的毛利率，我們有必要能夠保留庫存，多年來，我意識到這些零件的毛利率非常高。

And then you didn't call out China as a source of additional weakness. I was wondering if we could maybe get an update there, what you're seeing out of China and/or Asia.

然後你沒有指出中國是額外弱點的根源。我想知道我們是否可以在那裡得到最新消息，你在中國和/或亞洲看到了什麼。

Sure. So in the breakout that we provide that's on our website, Asia. We don't usually break out China, but Asia was flattish. The declines were largely in the Americas and to a larger extent, in Europe. And I think China and Asia on current basis is more constructive.

當然。因此，我們在亞洲網站上提供了突破性的資訊。我們通常不會單獨列出中國，但亞洲表現平平。下降主要發生在美洲，更大範圍內發生在歐洲。我認為中國和亞洲在目前的基礎上更具建設性。

The weakness is predominantly in the Americas and Europe. And I think that is, to some extent, consistent with if you look at some of the PMI reports and where the manufacturing economy is that just this morning, the US PMI came out last month, the European PMI came out.

疲軟的地區主要是美洲和歐洲。我認為，在某種程度上，這與今天早上發布的一些 PMI 報告以及製造業經濟狀況是一致的，美國上個月的 PMI 和歐洲 PMI 都出來了。

This is not the first month, there's been many, many months over which that weakness has been playing out. And I think China was there earlier on as were other parts of Asia. Some of that they have worked out. So more stability and strength on a relative basis than the Europe and Americas regions.

這不是第一個月了，這種疲軟狀態已經持續了很多很多個月了。我認為中國和亞洲其他地區更早出現在那裡。其中一些他們已經解決了。因此相對而言比歐洲和美洲地區更穩定和實力。

Tore Svanber, Stifel.

托雷·斯萬伯，斯蒂菲爾。

Ganesh, one of your peers last week talked about customers sort of ordering hand to mouth and potentially even holding too low inventory due to working capital constraints and so on and so forth. Are you seeing that with some of your customers and maybe especially on the industrial side because that's certainly a concerning thing and it certainly may reflect the very low terms orders that you are getting or the very low backlog visibility that you are getting?

Ganesh，您的一位同行上週談到了客戶的訂單量，甚至可能由於營運資金限制等而導致庫存過低。您是否在某些客戶身上看到了這種情況，尤其是在工業方面，因為這肯定是一件令人擔憂的事情，而且它肯定可能反映出您收到的訂單條款非常低，或者您收到的積壓可見度非常低？

No, that is absolutely happening at many, many customers. And I think they have, in some cases, low visibility into their own business as well. So they're reflecting that. Given that there's plenty of capacity and short lead times, right? There's really no reason for them to try to get backlog ahead of time.

不，這絕對發生在很多很多客戶身上。我認為，在某些情況下，他們對自己業務的了解也很低。所以他們正在反映這一點。考慮到產能充足且交貨時間短，對嗎？他們確實沒有理由試圖提前獲得積壓的訂單。

At some point, that will change, and it will correct itself. But yes, the -- what is reflected in the green shoots we talked about when we said we're getting expedite orders where new orders are being placed with short cycle expectation and prior orders that were placed are being pulled in.

在某些時候，這種情況將會改變，並且會自行修正。但是，是的，當我們說我們正在獲得加急訂單時，我們談到的萌芽反映了這一點，即新訂單以短週期預期下達，而先前下達的訂單正在被拉動。

Those are all reflective of people who are more conservative in how they place orders and then recognizing they need it parts sooner. At some point, that will catch up on itself. It's still early, but that's how these things usually correct is people tend to go too low and run out of inventory, any strengthening in the business starts to create some urgency for orders that becomes the whole expedite chase. We saw that back in other cycles as well. But that is something we're watching.

這些都反映出人們在下訂單的方式上更加保守，然後認識到他們需要更快地零件。在某些時候，這會迎頭趕上。現在還為時過早，但這就是這些事情通常會糾正的方式，因為人們往往會走得太低並耗盡庫存，業務的任何加強都會開始對訂單產生一些緊迫感，從而成為整個加速追逐的過程。我們在其他週期中也看到了這一點。但這是我們正在關注的事情。

We're still in the early innings of how that up cycle will play out.

我們仍處於上升週期如何展開的早期階段。

Yes. And related to that, I mean, can you comment on how much terms you need at this point and maybe compare that with previous cycle?

是的。與此相關，我的意思是，您能否評論一下您目前需要多少條款，並可能與上一個週期進行比較？

So we don't typically break that out. I think maybe you want to give some historical perspective on where they're at.

所以我們通常不會打破這一點。我想也許你想對他們所處的位置提供一些歷史視角。

So I mean, it is not unusual for us to enter a quarter needing 30%, 40% turns. And with short lead times, we've been able to do that historically now. We're coming off a period up to the last couple of quarters where we were fully booked entering a quarter. So it's definitely a large change for us from what we've seen over the last 2.5 years.

所以我的意思是，我們進入一個需要 30%、40% 週轉率的季度並不罕見。由於交貨時間短，我們現在已經能夠做到這一點。我們即將結束過去幾季的一段時期，進入一個季度時我們已經被訂滿了。因此，與過去 2.5 年相比，這對我們來說絕對是一個巨大的變化。

But there's a significant amount of terms that we need to take, and we've kind of been signaling that to the marketplace that with short lead times that is not out of outside of what we would expect it to be. And customers are managing their balance sheet and know that we can get them inventory quickly.

但我們需要接受大量條款，我們一直在向市場發出這樣的訊號：交貨時間很短，這並不超出我們的預期。客戶正在管理他們的資產負債表，並且知道我們可以快速為他們提供庫存。

(Operator Instructions) Joshua Buchalter, TD Cowen.

（操作員說明）Joshua Buchalter，TD Cowen。

Congratulations to Steve in the next step in an incredible career. To start, I was hoping maybe you provide some more color on what's baked into your assumptions for the September quarter guidance. I know it's difficult but is there any way maybe you can give us on a relative basis. Do you -- how much do you expect to be under-shipping demand in the September quarter? Is that level going down versus June.

祝賀史蒂夫在令人難以置信的職業生涯中邁出了下一步。首先，我希望您能就 9 月季度指導的假設提供更多資訊。我知道這很困難，但是有什麼辦法也許你可以給我們一個相對的基礎。您預計九月季度的出貨需求會不足多少？與六月相比，這個水準是否有所下降？

Do you feel like you're close to shipping to end demand and demand just weak? I'd just be curious to hear any granularity you can give us on what you're seeing at inventory levels, both in the channel what your downstream -- and at your downstream customers.

您是否覺得自己已接近滿足最終需求但需求卻疲軟？我只是很想知道您能否向我們提供有關您所看到的庫存水平的任何詳細信息，無論是在您的下游渠道還是在您的下游客戶中。

So a lot of questions there, and I think there's a lot of information that is really not readily available. Clearly, as Eric mentioned, the distribution inventory in absolute terms has been coming down. It's the third consecutive quarter where we brought down distribution. So that is draining. Where is true consumption at - I think that's a $64 million question that I'm not completely sure we know where that is.

那裡有很多問題，而且我認為有很多資訊確實不容易獲得。顯然，正如艾瑞克所提到的，分銷庫存的絕對值一直在下降。這是我們連續第三季減少分銷。所以很耗電。真正的消費在哪裡——我認為這是一個價值 6400 萬美元的問題，但我不完全確定我們知道它在哪裡。

Anecdotally, when I visit customers, and I try to understand where is their business, and I try to compare it to where is our business, right? Where is our business. Customer business is down more in the 5%, 10%, 15% year over year kind of that level. We're obviously down in the mid-40s, maybe high 40s with the guidance and.

有趣的是，當我拜訪客戶時，我試圖了解他們的業務在哪裡，並嘗試將其與我們的業務進行比較，對嗎？我們的生意在哪裡。客戶業務較去年同期下降更多，有 5%、10%、15% 之類的水平。在指導下，我們顯然處於 40 多歲左右，甚至可能在 40 多歲左右。

So that delta is what you should expect that in time, as inventory drains will get closed with a recovery in our business even when the macro is still weak. But the customers don't really report out inventory to us. We can glean information based on are they placing orders? Are they expediting orders? What are they seeing?

因此，隨著我們業務的復甦，即使宏觀經濟仍然疲軟，庫存消耗也會隨著我們業務的復甦而結束，所以這個增量是你應該及時預期的。但客戶並沒有真正向我們報告庫存。我們可以根據他們是否下訂單來收集資訊？他們正在加急訂單嗎？他們看到了什麼？

And in those patterns, you can begin to form conclusions for a given customer.

在這些模式中，您可以開始為特定客戶得出結論。

We have 100,000 customers. It's awfully hard to integrate that. And then from an end market perspective, as we mentioned, both industrial and automotive are both large pieces of our business and where we see the largest weaknesses as well.

我們有 10 萬名客戶。整合起來非常困難。然後，從終端市場的角度來看，正如我們所提到的，工業和汽車都是我們業務的重要組成部分，也是我們看到的最大弱點。

Understood. And I mean, it doesn't really seem like it from the gross margin numbers you're putting up. But anything changed as a digestion extends on the pricing front? And in particular, like one of your larger peers, I think, called out some pricing pressure and weakness in general purpose microcontrollers. Are you observing any of that?

明白了。我的意思是，從你提供的毛利率數據來看，情況似乎並非如此。但隨著消化在定價方面的延伸，有什麼改變嗎？我認為，特別是像您的較大同行之一一樣，指出了通用微控制器的一些定價壓力和弱點。你有觀察到這些嗎？

So there's no pricing pressure on the immediate products we are shipping last quarter or this quarter. And there's always the fringes some of that. But what really takes place is our new designs, all participants who are trying to win a design are going to put their best foot forward, which often is their newest and most cost-effective products and are going to be as aggressive as they can be with consistent within their model for that. That is, in fact, happening.

因此，我們上季度或本季出貨的直接產品不存在定價壓力。而且總是有一些邊緣。但真正發生的是我們的新設計，所有試圖贏得設計的參與者都會全力以赴，這通常是他們最新、最具成本效益的產品，並將盡可能積極進取與他們的模型一致。事實上，這種情況正在發生。

And -- but that is always how business has been conducted. And I'm sure there may be a little extra of that when people see the environment is weak. But pricing, in general, is a more strategic exercise both for us and for customers for whom they're making decisions on a platform for multiyears. And price is not the only reason someone makes a decision. It's really value.

而且——但這始終是開展業務的方式。我確信當人們看到環境薄弱時，可能會產生一些額外的影響。但總的來說，定價對於我們和多年來在平台上做出決策的客戶來說都是更具策略性的做法。價格並不是人們做出決定的唯一原因。這真的很有價值。

And it's what else do we bring besides price that brings the overall value equation to match what the customer is willing to accept.

除了價格之外，我們還提供其他什麼，使整體價值方程式與客戶願意接受的東西相符。

Harlan Sur, JPMorgan.

哈蘭‧蘇爾，摩根大通。

As you guys mentioned other of your peers in the embedded market, MCU and analog have seen sort of this broad pickup in China back in May, at our conference. I think you did talk about seeing improvements in sell-through by your China disti customers. It looks like, again, as you guys mentioned, this was reflected in your Asia sales, which were flat sequentially.

正如你們提到的嵌入式市場的其他同行，MCU 和模擬在 5 月的我們的會議上在中國已經看到了這種廣泛的回升。我想您確實談到了您的中國分銷客戶的銷售量有所改善。正如你們所提到的，這似乎反映在你們的亞洲銷售額中，該銷售額連續持平。

Did Asia (inaudible) sell-through actually grow sequentially in June? And during the September quarter, would you anticipate China and the Asia region revenues this quarter to outperform Europe and North America again?

6 月份亞洲（聽不清楚）的銷售實際上環比成長了嗎？在九月季度，您預計本季中國和亞洲地區的營收將再次超過歐洲和北美嗎？

We don't break out the details of sell-through any longer, right? We provided some information over the last couple of quarters of the amount that sell-through exceeded sell-in. That amount was $85 million roughly in the June quarter and about $125 million in the March quarter. I will just say that China was really the first to go into this.

我們不再透露銷售的細節，對吧？我們提供了過去幾季銷售量超過銷售量的一些資訊。 6 月季度的這筆金額約為 8,500 萬美元，3 月份的季度金額約為 1.25 億美元。我只想說，中國確實是第一個進入這個領域的人。

This is similar to Ganesh's comments earlier. And we wouldn't be surprised if they were the first to come out. The June quarter is a little bit hard to judge because the March quarter has a Chinese New Year. So there's just more shipping days, right? And so you kind of have to look effectively what's happening on a daily basis.

這與 Ganesh 之前的評論類似。如果他們是第一個出來的，我們不會感到驚訝。六月季度有點難以判斷，因為三月季度正值農曆新年。那麼運送天數就更多了，對嗎？所以你必須有效地觀察每天發生的事情。

But I would say China is our least weak market at this point in time. And I know that doesn't sound great, but Americas and Europe are definitely hurting more so at this point in time than what we're seeing out of the Far East.

但我想說，中國是目前我們最不疲軟的市場。我知道這聽起來不太好，但美洲和歐洲目前所受到的傷害肯定比我們在遠東看到的還要嚴重。

One of the difference in this cycle is we have typically viewed sell-through as a measure of the consumption, the economic conditions have changed. What we're also seeing is there is inventory sometimes downstream. So a great example, if you take automotive, right, if you look at automotive showrooms, particularly in the US where they have inventory, have substantially more inventory today than they did a year ago or two years ago.

這個週期的差異之一是，我們通常將銷售量視為消費的衡量標準，但經濟狀況已經改變了。我們也看到下游有時存在庫存。這是一個很好的例子，如果你看一下汽車展廳，尤其是在美國，他們有庫存，今天的庫存比一年前或兩年前要多得多。

So inventory sometimes is not just what the channel has, but also what is downstream from them. And all those play into the final equation of how does the destocking take place. And I think that has been one of the reasons why it has been slower than what most of us have expected. But as every month goes by, it continues to lower the level of water. And I think that just sets the conditions up for when this will revert back and change to those direction.

因此，庫存有時不僅僅是通路擁有的庫存，還包括通路下游的庫存。所有這些都影響到如何進行去庫存的最終方程式。我認為這就是它比我們大多數人預期的要慢的原因之一。但隨著時間的推移，水位不斷降低。我認為這只是為何時恢復並改變到這些方向奠定了條件。

I appreciate the color there. Obviously, in this kind of environment that you just described, there is a lot of in orders. I appreciate that. But is the team seeing a pickup in cancellations pushouts and rescheduling or is that still at relatively low levels.

我很欣賞那裡的顏色。顯然，在你剛才描述的這種環境中，有許多訂單。我很感激。但團隊是否看到取消、推遲和重新安排的情況增加，或仍處於相對較低的水平。

No, that has been on a decline continues to be -- that's one of the green shoots that continues is that new bookings are continuing not as fast as we would like, and the cancellations and pushouts are decreasing. So those are good signs.

不，這一數字一直在下降——這是持續出現的新芽之一，新預訂的速度沒有我們希望的那麼快，而且取消和取消的情況正在減少。所以這些都是好兆頭。

Chris Danley, Citibank.

克里斯丹利，花旗銀行。

I guess just from a broader perspective, so you're seeing some green shoots, but the revenue decline is getting incrementally worse. So exactly how is that happening? And then when the customers come to you guys, are they saying that it's more their demand trends are a little worse than expected? Or are they just like found too much inventory? Or is it some combination of both?

我想從更廣泛的角度來看，你會看到一些萌芽，但收入下降的情況越來越嚴重。那麼到底是怎麼發生的呢？然後當客戶來找你們時，他們是否會說他們的需求趨勢比預期的要差一些？或者他們只是發現庫存過多？還是兩者的結合？

Maybe just take us into the machinations of the quarter of the business?

也許只是帶我們進入該季度業務的陰謀？

If you look at the end markets, we have a large exposure to industrial and automotive. And clearly, there is more cleanup there. That's also where when you look at broader macro trends, what is happening with the PMI, what is being reflected in that. I mean I think US has had of 21 months in a row where the PMI has been weak.

如果你看看終端市場，我們在工業和汽車領域有很大的投資。顯然，那裡有更多的清理工作。這也是當你觀察更廣泛的宏觀趨勢時，PMI 正在發生什麼，其中反映了什麼。我的意思是，我認為美國 PMI 已連續 21 個月疲軟。

Europe, I think, is closer to 24 months.

我認為歐洲更接近 24 個月。

So all of that is just playing itself out into lack of confidence in knowing what and when their business will change, lack of confidence in placing orders soon enough. And so at some point, this will all reverse. We just don't have enough visibility to be able to say, "Hey, here's how it is, and here's when it is. And -- but I don't have more than that. We call it the way we're seeing it.

因此，這一切都只是導致他們缺乏信心，不知道自己的業務會發生什麼變化以及何時發生變化，缺乏盡快下訂單的信心。所以在某個時候，這一切都會逆轉。我們只是沒有足夠的可見性來說，「嘿，事情就是這樣，事情就是這樣。而且——但我沒有更多的資訊。我們稱之為我們所看到的方式它。

And right now, I think there's lack of confidence reflected in the backlog being low and the orders being placed on shorter cycles than what they would historically have done. And you add all that up, is what we have in our guidance.

目前，我認為積壓訂單量較低以及訂單週期比以往更短，這反映出人們缺乏信心。把所有這些加起來，就是我們的指導。

Sure. And then before I ask my follow-up, I just want to say that Steve, you are a true icon in the industry, especially for those of us that have been around for a long time. And we really appreciated your candor and your honesty over the years. I really mean that.

當然。在我詢問後續問題之前，我只想說史蒂夫，你是這個行業真正的偶像，特別是對於我們這些已經存在很長時間的人來說。我們非常感謝您多年來的坦率和誠實。我真的是這個意思。

And as my follow-up, just in terms of your two bigger end markets, automotive versus industrial, any qualitative or quantitative comments on which is worse, or which is better and why on a relative basis?

作為我的後續行動，就汽車和工業這兩個更大的終端市場而言，有什麼定性或定量的評論可以說明哪個更差，哪個更好，以及為什麼相對而言？

Yes. I don't know about the why, but I can tell you, I think in general, anecdotally, I would say industrial feels worse, and it's just been consistent with -- I think automotive has a bit of it, which is inventory, but also a bit of it, which is people are still buying cars and it's just flowing through that inventory. But I would say on a relative basis, that would be my best guess.

是的。我不知道為什麼，但我可以告訴你，我認為總的來說，從軼事來看，我會說工業感覺更糟，而且它與 - 我認為汽車有一點是一致的，那就是庫存，但還有一點是，人們仍在購買汽車，但它只是流過庫存。但我想說，相對而言，這是我最好的猜測。

Harsh Kumar, Piper Sandler.

嚴厲的庫馬爾，派珀桑德勒。

Yes. Let me start off. Steve, congratulations. I've enjoyed working with you for all these, I guess, over a decade now. And hopefully, we'll still get to hear your voice on at least some of the calls.

是的。讓我開始吧。史蒂夫，恭喜你。我想，十多年來，我很高興與您一起完成所有這些工作。希望我們至少在某些通話中仍能聽到您的聲音。

Appreciate it's Steve all the holes that we put in with you and you're honestly as somebody else said earlier.

感謝史蒂夫，我們給你帶來的所有漏洞，你是誠實的，正如其他人之前所說的那樣。

I had a question. Let me start off with the product question. Could you just help us understand what kind of end markets you might be able to address with a 64-bit microcontroller -- and I think you mentioned that the software that will be used on 64 bit is also the same over 8 to 64 and also your FPGA line. Is that actually correct? And how important is that?

我有一個問題。讓我從產品問題開始。您能幫助我們了解您可以使用 64 位元微控制器解決什麼樣的終端市場嗎？線。這實際上是正確的嗎？這有多重要？

So firstly, it isn't the software that is common. It's all the development tools and the related ecosystem of what we need to do. But yes, so they all come under what is a Microchip branded set of ecosystem and tools. We call it MP lab. And all of that is set up in such a way that once you get used to that environment, you can easily move around, you can port things between the different products and you can start on a bit processor and move to a 64-bit processor or vice versa as the case might be.

首先，它不是通用的軟體。就是我們要做的所有的開發工具以及相關的生態系統。但是，是的，所以它們都屬於 Microchip 品牌的生態系統和工具集。我們稱之為 MP 實驗室。所有這些都是以這樣的方式設定的：一旦您習慣了該環境，您就可以輕鬆移動，可以在不同產品之間移植，並且可以從位元處理器開始並遷移到 64 位元處理器或反之亦然（視情況而定）。

The -- there is a significant expansion that is at the higher performance end of where this processing takes place. And so this is more compute intensive. It's in places which can be in factory automation, it's envision. That machine vision. It's an AI at the edge.

- 在進行此處理的更高效能端有顯著的擴展。因此，這是計算密集型的。這是可以想像的，它可以在工廠自動化的地方進行。那個機器視覺。這是一個處於邊緣的人工智慧。

And so it's a continuum of where we were on microprocessors with 32-bit, but now higher end from there where we couldn't reach before with the products that we had and also, in some cases, opening up some places where perhaps people would not have considered us because they didn't see a common road map that they could get to from starting at one end of what we had in 32-bit and moving into the other end of 64 bit.

因此，這是我們在32 位元微處理器上的連續統一體，但現在是我們以前無法使用我們擁有的產品達到的更高端，而且在某些情況下，也開闢了一些人們可能會感興趣的領域。

So this is going to be done over multiple years, we'll have a broad set of portfolio of products, a family of products that are going to be needed. But clearly, it opens up a meaningful amount of new total available market to us. And by our estimates, there's about $3 billion to $4 billion of total available market on the 32-bit loan. By the time you add the 64 bits, it almost doubled that to about $6 billion.

因此，這將在多年內完成，我們將擁有廣泛的產品組合，一系列所需的產品。但顯然，它為我們開闢了大量新的可用市場。據我們估計，32 筆貸款的可用市場總額約為 30 億至 40 億美元。當加上 64 位數時，這個數字幾乎翻了一番，達到約 60 億美元。

Got it. And maybe for my follow-up, I wanted to ask you sort of talked about industrial versus automotive, but maybe you could give us some more color on which other end markets outside of data center are acting better. And perhaps some that are not acting so well outside of industrial.

知道了。也許對於我的後續行動，我想問您談論工業與汽車，但也許您可以給我們更多關於資料中心之外的其他終端市場表現更好的資訊。也許還有一些在工業領域之外表現不佳。

There's nothing that is acting better so to speak. Aerospace and defense for various reasons. It's stable. There are pockets of commercial aviation that for the well-known issues are there. space tends to be a very lumpy business for us quarter-to-quarter.

可以說，沒有什麼比這更好的了。由於各種原因，航空航天和國防。它很穩定。商業航空領域存在一些眾所周知的問題。對我們來說，每季的太空業務往往都非常不穩定。

Defense is strong for reasons that you can read in the news as well. But I don't have any other end market out as being particularly noteworthy.

防守很強大，原因你也可以在新聞上讀到。但我沒有其他終端市場特別值得注意。

Quinn Bolton, Needham & Company.

奎因·博爾頓，李約瑟公司。

(inaudible) on for Quinn. Just one question kind of talking about the other side of -- the only place that's positive, you talked about a broadening of data center growth in the September quarter. Can you just elaborate what's coming from? Is it from the general purpose side, the power connectivity, anything specific you can call out? .

（聽不清楚）奎因。只是一個問題，有點像談論另一面——唯一積極的地方，你談到了九月季度資料中心成長的擴張。能詳細說明一下是從哪裡來的嗎？是從通用方面、電源連接方面，還是您可以指出的任何具體方面？ 。

Yes. So the data center infrastructure, which is kind of where a lot of the business was before the AI wave and the accelerated computing way I came about as that happened, there was some amount of CapEx at many places that moved primarily to the accelerated computing.

是的。因此，資料中心基礎設施，也就是人工智慧浪潮之前的許多業務所在，以及我在那時出現的加速運算方式，在許多地方都有一定數量的資本支出主要轉向加速運算。

And we had our share of that with where we were designed in. Now what we're seeing is some of that and it can be in the back plane, the citing the power supplies, it can be in the storage networks, a number of different areas that all need at some point, the data center investment as well.

我們在設計時也有這樣的經驗。如此。

And all of that plays into the data center solutions that we bring. So the AI or the accelerated computing piece is going well. It's just other parts of data center are doing better at this point. Yes. And some of that, you can see also reflected in the CapEx announcements that have been made by some of the data center players out there.

所有這些都融入到我們帶來的資料中心解決方案中。所以人工智慧或加速運算部分進展順利。目前只是資料中心的其他部分做得更好。是的。其中一些，您也可以在一些資料中心參與者發布的資本支出公告中看到。

Craig Ellis, B. Riley Securities.

克雷格·艾利斯，B.萊利證券。

Steve, let me just start off by saying thanks for all the insights over the years, I learned a tremendous amount from you and really appreciate all your help. Moving on to questions, Ganesh, I wanted to go back to the point you made in prepared commentary about the significant reengagement from customers and design in activity. as we got through the supply chain crisis.

史蒂夫，首先讓我感謝您多年來的所有見解，我從您那裡學到了很多東西，並且非常感謝您的所有幫助。繼續提問，Ganesh，我想回到您在準備好的評論中提出的關於客戶和活動設計的顯著重新參與的觀點。當我們度過供應鏈危機。

As you look at how that's manifested across Microchip's business, can you comment a little bit for the unnotable trends? And from when those engagements result in design or a design win that's going to go to protect production, how should investors think about the gestation period.

當您了解這一點在 Microchip 業務中的體現時，您能否對不顯著的趨勢發表一些評論？當這些參與產生設計或設計勝利以保護生產時，投資者應該如何考慮醞釀期。

So when do we begin to see the benefit of this renewed more vibrant engagement that you're seeing from your customers?

那麼，我們什麼時候開始看到您從客戶那裡看到的這種新的、更有活力的參與所帶來的好處呢？

So our historical design cycles have been in the 12 to 24 months range. Some of them are a little longer, so maybe it shorter. But for the most part, it's in that 12 to 24 months range. And so you would begin to see a lot of this in the next 12 months because we are about 12 months into that process.

所以我們的歷史設計週期一直在 12 到 24 個月的範圍內。其中一些有點長，所以可能會更短。但大多數情況下，時間都在 12 到 24 個月的範圍內。因此，在接下來的 12 個月內，您將開始看到許多這樣的情況，因為我們已經進入該過程大約 12 個月了。

Now keep in mind that there are a couple of other forces that will make certain adjustments to it. One is when customers have inventory, they will also look to use their inventory and perhaps be a little more of the older generation until they can burn through that inventory before they shift to the newer generation of whatever they build.

現在請記住，還有其他一些力量會對其進行某些調整。一是當客戶有庫存時，他們也會考慮使用他們的庫存，並且可能會更多地使用老一代的庫存，直到他們可以消耗掉這些庫存，然後再轉向他們製造的新一代產品。

Second, if the slowdown in the macro persists for some time, historically, what we mean is customers tend to want to delay some of the launch because there's upfront costs associated with the marketing activities there, building of inventory, stocking of channels and all of that. And so there are many things at play here.

其次，如果宏觀經濟放緩持續一段時間，從歷史上看，我們的意思是，客戶往往希望推遲部分產品的發布，因為存在與營銷活動、庫存建設、渠道庫存等相關的前期成本。所以這裡有很多事情在起作用。

But it should, in the next one, two, three years, create a surge of activity from all the work that has been started since about a year ago, and it's continuing and will continue. And that surge has the benefit of both Microchip's approach on maximizing the total system solutions.

但在接下來的一年、兩年、三年裡，自大約一年前開始的所有工作應該會掀起一股活動熱潮，而且這種活動正在持續並將繼續下去。這種激增得益於 Microchip 最大化整體系統解決方案的方法。

And we do measure that internally, how we look at how many products for Microchip are getting attached to these new designs and how well it attaches to the fastest growing parts of the market. So I think there's a lot coming in the next one, two, three years from design in activity over the last year, plus the design-in activities that are still continuing over the next one or two years.

我們確實在內部進行了衡量，我們如何看待有多少 Microchip 產品與這些新設計相關，以及它與市場成長最快的部分的相關程度如何。因此，我認為，去年、兩年、三年的設計活動以及未來一兩年仍在繼續的設計活動將帶來許多成果。

That's really helpful. And then for the follow-up one for Eric. Eric, it's clear you're able to keep CapEx pretty low over the next two to four quarters. I wanted to understand the interplay of that with low foundry utilization that we're seeing in potentially attractive pricing.

這真的很有幫助。然後是埃里克的後續作品。埃里克，很明顯，您能夠在接下來的兩到四個季度內將資本支出保持在相當低的水平。我想了解這與我們在潛在有吸引力的定價中看到的低代工廠利用率之間的相互作用。

At the margin, does the current foundry environment with low utilization give you an opportunity to do a little bit more externally or as you look at the mix of internal and external production, are you interested in continuing with the mix that you've had in driving that forward.

在邊際上，目前使用率較低的代工環境是否為您提供了在外部進行更多操作的機會，或者當您考慮內部和外部生產的組合時，您是否有興趣繼續使用您已經擁有的組合推動這一進程向前發展。

I would say the mix that we have is pretty fixed, right? Typically, a product is either designed on a process technology in one of our own factories or an outsourced partners process. There are limited cases where we have capabilities to do something both externally and internally on the fab side.

我想說我們的組合是相當固定的，對吧？通常，產品要么是根據我們自己工廠的工藝技術設計的，要么是根據外包合作夥伴工藝設計的。在有限的情況下，我們有能力在晶圓廠外部和內部做一些事情。

So I think that mix is going to stay about where it's at. We continue to do some things with technologies that we own to bring them in-house, but we've got this roughly 40% in rental 60% external split for foundry.

所以我認為這種混合將保持在原來的位置。我們繼續利用我們擁有的技術來做一些事情，將它們引入內部，但我們已經將大約 40% 的租金和 60% 的外部分成用於代工廠。

And I think that will likely stay about that for the coming years.

我認為未來幾年這種情況可能會持續下去。

And where we have opportunities of technologies that can run both inside and outside. And we have done some of the work over the last two, three years towards that. It is far more favorable to load an underloaded internal factory for almost all cases that I can think of, than it is to say, let's continue to underload the internal factory and load more at the foundry.

我們擁有可以在內部和外部運作的技術的機會。在過去的兩三年裡，我們已經為此做了一些工作。在我能想到的幾乎所有情況下，加載一個負載不足的內部工廠要比說讓我們繼續負載不足的內部工廠並在鑄造廠負載更多要有利得多。

Janet Ramkissoon, Quadra Capital.

Janet Ramkissoon，Quadra Capital。

First, Steve, thanks very much for a nice ride. All these decades and for all you've done for Microchip long-term shareholders. A lot of my questions have been asked.

首先，史蒂夫，非常感謝您為我們帶來了愉快的旅程。幾十年來，感謝您為 Microchip 長期股東所做的一切。我的很多問題都被問到了。

Met 40 years ago, when I was raising private financing at a $10 million market cap. Fast-forward 34 years with a $45 billion market cap, you're still a (inaudible). So staying the I'm ready to go kick for my grandkids. Kick them around by (inaudible)

40 年前相識，當時我正在籌集市值 1,000 萬美元的私人融資。快進 34 年，市值達到 450 億美元，您仍然是（聽不清楚）。所以，我已經準備好為我的孫子們踢球了。踢他們（聽不清楚）

I still hold some of that stock, Steve. Thank you for convincing to with this. So just a couple of little ones if I may. 64-bit marketplace. Can you give us a sense or any color on what the early design win activity is looking like?

我仍然持有一些股票，史蒂夫。謝謝你的說服。如果可以的話，就幾個小孩子吧。 64 位市場。能為我們介紹一下早期設計獲勝活動的情況嗎？

And the second question is that you said that June, May was fattish June was weak. Any additional color on how July progressed relative to June and May.

第二個問題是你說六月、五月很胖，六月很弱。關於 7 月相對於 6 月和 5 月的進展的任何其他顏色。

So I think the -- I said May was flattish. June actually was -- is -- in terms of plans was up from there. The July numbers are just coming together, I would say, is flattish where it was. So month-to-month, these things don't matter as much. We just need to look at it kind of on a quarterly bucket in terms of where it's at.

所以我認為──我說的五月是平淡的。就計劃而言，六月實際上是從那裡開始的。我想說，七月份的數據剛剛匯總起來，與原來的情況持平。所以每個月，這些事情都不再那麼重要了。我們只需要按季度來看它的位置。

And in a stutter step, it is heading in the right direction, just not consistent month-to-month and not at the pace that we want to on a quarter-to-quarter basis.

它正在朝著正確的方向前進，只是步履蹣跚，只是每個月的情況不一致，也沒有達到我們希望的每個季度的速度。

On your 64-bit question, it's early days. So it's too early to have design wins, but we have lots of early adopters. These would be customers who are interested, want to have the product samples and the tools have an idea of a design that they want to pursue are in detailed discussions with our field and technical teams because they see an opportunity to take advantage of what the 64-bit product lines have. And so it's optimistic early days, but still early days.

關於您的 64 位元問題，現在還為時過早。因此，現在獲得設計勝利還為時過早，但我們有許多早期採用者。這些客戶有興趣，想要產品樣品和工具，了解他們想要追求的設計理念，並與我們的現場和技術團隊進行詳細討論，因為他們看到了利用 64位產品線都有。因此，現在還處於樂觀的早期階段，但仍處於早期階段。

Just one little thing. If history repeats itself, once you start producing the 64-bit chips, the margins on those new products should really move up the ramp quite a bit faster. Well, they would certainly be faster than the 32 would assume given the markets that you're targeting. Is that a fair assumption? .

只是一件小事。如果歷史重演，一旦開始生產 64 位元晶片，這些新產品的利潤率確實應該會更快上升。好吧，考慮到您所瞄準的市場，它們肯定會比 32 假設的速度更快。這是一個公平的假設嗎？ 。

It's a little early for that. Typically, the processor or controller margins have all been within a narrow range between them. I think to some extent, as we find the specific applications we'll look at that. And we want to look at margin not just on that one chip alone. We want to look at how is it with the entire portfolio that attached to that 64 bed.

現在還為時過早。通常，處理器或控制器的裕度都在它們之間的狹窄範圍內。我認為在某種程度上，當我們找到具體的應用程式時，我們會考慮這一點。我們希望不僅僅關注某一晶片的利潤率。我們想了解一下與 64 張床相連的整個產品組合的情況如何。

And so the value for us is not just the one chip, but it's really the entire total system solutions that we can bring to that customer. Great. Thank you.

因此，對我們來說，價值不僅僅是一個晶片，而是我們可以為客戶帶來的整個系統解決方案。偉大的。謝謝。

I would like to turn the floor over to Ganesh for closing remarks.

我想請加內什致閉幕詞。

Okay. Well, thank you, everybody, for coming in and spending some time with us. And we look forward to meeting many of you in the coming weeks through the conferences and other meetings that are being set up. So thank you. This concludes this call.

好的。好的，謝謝大家來到這裡並與我們共度時光。我們期待在未來幾週內透過正在召開的會議和其他會議與你們中的許多人見面。所以謝謝。本次通話到此結束。

This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與。