芯源系統 (MPWR) 2020 Q3 法說會逐字稿

Welcome, everyone, to the MPS Third Quarter 2020 Earnings Webinar. Please note that this webinar is being recorded and will be archived for 1 year on our Investor Relations page at monolithicpower.com. My name is Genevieve Cunningham, and I will be the moderator for this webinar.

歡迎各位參加 MPS 2020 年第三季財報網路研討會。請注意，本次研討會將被錄音，並將在 monolithicpower.com 的投資人關係頁面存檔 1 年。我叫 Genevieve Cunningham，將擔任本次研討會的主持人。

Joining me today are Michael Hsing, CEO and Founder of MPS; and Bernie Blegen, VP and CFO. During this webinar, we will discuss our Q3 2020 financial results and guidance for Q4 2020, followed by a Q&A session.

今天與我一同出席的有 MPS 執行長暨創辦人 Michael Hsing，以及副總裁兼財務長 Bernie Blegen。在本次研討會中，我們將討論 2020 年第三季的財務結果與 2020 年第四季的展望指引，隨後進行問答環節。

(Operator Instructions)

（接線員指示）

In the course of today's webinar, we will be making forward-looking statements and projections that involve risk and uncertainty, which could cause results to differ materially from management's current views and expectations. Please refer to the safe harbor statement contained in the earnings release published today. Risks, uncertainties and other factors that could cause actual results to differ are identified in the safe harbor statements contained in the Q3 2020 earnings release and in our SEC filings, including our Form 10-K filed on February 28, 2020, and in our Form 10-Q filed on August 3, 2020, which are accessible through our website, monolithicpower.com.

在今天的研討會過程中，我們將提出涉及風險與不確定性的前瞻性陳述與預測，這些因素可能導致實際結果與管理層目前的觀點與預期存在重大差異。請參閱今日發布之財報新聞稿中所載的安全港聲明。可能導致實際結果不同的風險、不確定性及其他因素，已在 2020 年第三季財報新聞稿以及我們向 SEC 提交的文件（包括於 2020 年 2 月 28 日提交的 Form 10-K，以及於 2020 年 8 月 3 日提交的 Form 10-Q）中的安全港聲明內加以說明；上述文件可透過我們的網站 monolithicpower.com 查閱。

MPS assumes no obligation to update the information provided on today's call. We will be discussing gross margin, operating expense, R&D and SG&A expense, operating income, interest and other income, net income and earnings on both a GAAP and a non-GAAP basis. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A table that outlines the reconciliation between the non-GAAP financial measures to GAAP financial measures is included in our earnings release, which we have filed with the SEC. I would refer investors to the Q3 2019, Q2 2020 and Q3 2020 releases as well as to the reconciling tables that are posted on our website.

MPS 不承擔更新今日電話會議所提供資訊的任何義務。我們將以 GAAP 與非 GAAP 兩種基礎討論毛利率、營業費用、研發與銷售及管理（SG&A）費用、營業利益、利息及其他收入、淨利與每股盈餘。這些非 GAAP 財務衡量指標並非依 GAAP 編製，不應被視為 GAAP 財務績效衡量指標的替代或更優指標。我們的財報新聞稿（已向 SEC 提交）中包含一份表格，說明非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節。我建議投資人參考 2019 年第三季、2020 年第二季與 2020 年第三季的新聞稿，以及張貼於我們網站上的調節表。

Now I'd like to turn the call over to Bernie Blegen.

現在我想把電話會議交給 Bernie Blegen。

Thanks, Jen. MPS achieved record third quarter revenue of $259.4 million, 39.3% higher than revenue in the second quarter of 2020, and 53.7% higher than the comparable quarter in 2019. As noted in our September 14, 2020 update to our Q3 financial guidance, our revenue increased beyond expectations for 2 key reasons: First, we were able to fulfill our customers' demand that had been delinquent due to past capacity constraints; second, certain China-based customers requested previously scheduled shipment dates be pulled into the third quarter of 2020. We believe this request was related to trade and regulatory policy changes that occurred during the quarter. These 2 factors contribute significantly to this quarter's performance relative to the prior quarter of 2020 and to Q3 of 2019.

謝謝你，Jen。MPS 在 2020 年第三季達成創紀錄營收 2.594 億美元，較 2020 年第二季高出 39.3%，較 2019 年同期高出 53.7%。如我們於 2020 年 9 月 14 日更新的第三季財務指引所述，我們的營收超出預期主要有兩個關鍵原因：第一，我們得以滿足先前因產能限制而延遲的客戶需求；第二，部分以中國為基地的客戶要求將原先排定的出貨日期提前至 2020 年第三季。我們認為此要求與本季期間發生的貿易與監管政策變動有關。這兩項因素相較於 2020 年前一季以及 2019 年第三季，對本季表現有顯著貢獻。

Looking at our revenue by market. Third quarter 2020 communications revenue of $54.7 million was up 81.8% from the second quarter of 2020, primarily due to a pull-in of customers' requested ship dates. Communications sales represented 21.1% of our total third quarter 2020 revenue. In our consumer markets, third quarter 2020 revenue of $70.2 million increased 47.4% from revenue reported for the prior quarter of 2020. This extraordinary growth in consumer reflects a combination of market share gains in gaming, wearables and IoT applications, along with normal seasonality.

從市場別來看我們的營收。2020 年第三季通訊市場營收為 5,470 萬美元，較 2020 年第二季成長 81.8%，主要由於客戶要求的出貨日期提前。通訊銷售占我們 2020 年第三季總營收的 21.1%。在消費性市場方面，2020 年第三季營收為 7,020 萬美元，較 2020 年前一季所報告的營收成長 47.4%。消費性業務的這種非凡成長，反映了在遊戲、穿戴式裝置與 IoT 應用的市占率提升，以及正常的季節性因素共同作用。

Consumer revenue represented 27.1% of our third quarter 2020 revenue. In our computing and storage market, third quarter revenue of $75.3 million increased $11.2 million or 17.5% from the second quarter of 2020. The sequential quarterly revenue growth was broad-based with sales gains recorded in high-end notebooks, servers and storage. Computing and storage revenue represented 29.0% of MPS' third quarter 2020 revenue. Third quarter automotive revenue of $28.5 million grew $10.7 million or 60.4% over the second quarter of 2020. This improvement reflects a more normal ordering level following the Q2 2020 industry-wide slowdown resulting from the pandemic. We believe MPS' market share will continue to expand in the coming years as we have been awarded multiple design wins in infotainment, smart lighting, ADAS and autonomous driving. Automotive revenue was 11.0% of MPS' total third quarter 2020 revenue.

消費性營收占我們 2020 年第三季營收的 27.1%。在運算與儲存市場方面，第三季營收為 7,530 萬美元，較 2020 年第二季增加 1,120 萬美元（或 17.5%）。按季營收成長範圍廣泛，在高階筆電、伺服器與儲存等領域均錄得銷售成長。運算與儲存營收占 MPS 2020 年第三季營收的 29.0%。2020 年第三季車用營收為 2,850 萬美元，較 2020 年第二季增加 1,070 萬美元（或 60.4%）。此改善反映在疫情導致 2020 年第二季全產業放緩之後，訂單水準回到較正常的狀態。我們相信，隨著我們在資訊娛樂系統、智慧照明、ADAS 與自動駕駛領域取得多項設計導入（design win），MPS 的市占率在未來幾年將持續擴大。車用營收占 MPS 2020 年第三季總營收的 11.0%。

Third quarter 2020 industrial revenue of $30.7 million increased 15.3% from the second quarter of 2020, due primarily to increased revenue for power sources and industrial meters. Industrial revenue represented 11.8% of our total third quarter 2020 revenue. GAAP gross margin was 55.1%, matching the second quarter of 2020 and 10 basis points lower than the third quarter of 2019. Our GAAP operating income was $60.0 million compared to $28.0 million reported in the second quarter of 2020, and $30.0 million reported in the third quarter of 2019.

2020 年第三季工業市場營收為 3,070 萬美元，較 2020 年第二季成長 15.3%，主要由於電源供應器與工業儀表的營收增加。工業營收占我們 2020 年第三季總營收的 11.8%。GAAP 毛利率為 55.1%，與 2020 年第二季持平，較 2019 年第三季低 10 個基點。我們的 GAAP 營業利益為 6,000 萬美元，相較於 2020 年第二季所報告的 2,800 萬美元，以及 2019 年第三季所報告的 3,000 萬美元。

Non-GAAP gross margin for the second quarter of 2020 was 55.5%, 20 basis points below the gross margin reported for the second quarter of 2020 and 10 basis points lower than the third quarter from a year ago. Our non-GAAP operating income was $84.9 million compared to $53.0 million reported in the prior quarter and $51.4 million reported in the third quarter of 2019.

2020 年第三季非 GAAP 毛利率為 55.5%，較 2020 年第二季所報告的毛利率低 20 個基點，亦較去年同期第三季低 10 個基點。我們的非 GAAP 營業利益為 8,490 萬美元，相較於前一季所報告的 5,300 萬美元，以及 2019 年第三季所報告的 5,140 萬美元。

Let's review our operating expenses. Our GAAP operating expenses were $83.1 million in the third quarter of 2020 compared with $74.6 million in the second quarter of 2020 and $63.1 million in the third quarter of 2019. Our non-GAAP third quarter 2020 operating expenses were $59.1 million, up from the $50.7 million we spent in the second quarter of 2020 and up from the $42.5 million reported in the third quarter of 2019. The sequential increase in Q3 non-GAAP operating expenses primarily reflected higher variable costs associated with the increase in revenue and an increased level of investment in securing foundry capacity. The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are stock compensation expense, an income or loss on an unfunded deferred compensation plan.

接著檢視我們的營業費用。2020 年第三季 GAAP 營業費用為 8,310 萬美元，相較於 2020 年第二季的 7,460 萬美元，以及 2019 年第三季的 6,310 萬美元。2020 年第三季非 GAAP 營業費用為 5,910 萬美元，高於 2020 年第二季的 5,070 萬美元，也高於 2019 年第三季所報告的 4,250 萬美元。第三季非 GAAP 營業費用的按季增加，主要反映與營收成長相關的較高變動成本，以及為確保晶圓代工產能而提高的投資水準。此處所討論各季度中，非 GAAP 與 GAAP 營業費用之差異項目為：股票酬勞費用，以及未提撥資金之遞延補償計畫的收益或損失。

For the third quarter of 2020, total stock compensation expense, including approximately $707,000 charged to cost of goods sold, was $23.0 million compared with $21.0 million recorded in the second quarter of 2020.

2020 年第三季股票酬勞費用總額（包含約 70.7 萬美元計入銷貨成本）為 2,300 萬美元，相較於 2020 年第二季所記錄的 2,100 萬美元。

Switching to the bottom line. Third quarter 2020 GAAP net income was $55.6 million or $1.18 per fully diluted share compared with $30.2 million or $0.64 per share in the second quarter of 2020, and $29.5 million or $0.64 per share in the third quarter of 2019. Q3 non-GAAP net income was $79.4 million or $1.69 per fully diluted share compared with $50.6 million or $1.08 per share in the second quarter of 2020, and $49.5 million or $1.08 per share in the third quarter of 2019. Fully diluted shares at the end of Q3 2020 were 47.0 million.

轉到最終獲利。2020 年第三季 GAAP 淨利為 5,560 萬美元，或每股完全稀釋後 1.18 美元；相較之下，2020 年第二季為 3,020 萬美元或每股 0.64 美元，2019 年第三季為 2,950 萬美元或每股 0.64 美元。第三季非 GAAP 淨利為 7,940 萬美元，或每股完全稀釋後 1.69 美元；相較之下，2020 年第二季為 5,060 萬美元或每股 1.08 美元，2019 年第三季為 4,950 萬美元或每股 1.08 美元。2020 年第三季期末完全稀釋後股數為 4,700 萬股。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $554.5 million at the end of the third quarter of 2020 compared to $515.4 million at the end of the second quarter of 2020. For the quarter, MPS generated operating cash flow of about $77.4 million compared with Q2 2020 operating cash flow of $59.3 million. Third quarter 2020 capital spending totaled $19.6 million. Accounts receivable ended the third quarter of 2020 at $93.5 million, representing 33 days of sales outstanding, which was 6 days higher than the 27 days reported at the end of the second quarter of 2020 and 2 days higher than the 31 days at the end of the third quarter of 2019. Our internal inventories at the end of the third quarter of 2020 were $148.1 million, down from the $152.1 million at the end of the second quarter of 2020. Days of inventory of 116 days at the end of the third quarter 2020 were 50 days lower than at the end of the second quarter of 2020. The sequential drop in days inventory on hand represented an anomaly due to a decrease in the dollar value of inventory and a 39% increase in quarterly revenue. Currently, our inventory levels are lean. We are working very hard to return inventory to the 180 to 200-day level necessary to support our future growth.

現在讓我們來看資產負債表。截至2020年第三季末，現金、約當現金及投資為5.545億美元，相較於2020年第二季末的5.154億美元。本季，MPS 產生約7,740萬美元的營運現金流，對比2020年第二季的營運現金流5,930萬美元。2020年第三季資本支出合計1,960萬美元。應收帳款於2020年第三季末為9,350萬美元，代表銷售未收現天數（DSO）為33天，較2020年第二季末所報告的27天增加6天，亦較2019年第三季末的31天增加2天。我們的內部存貨於2020年第三季末為1.481億美元，低於2020年第二季末的1.521億美元。2020年第三季末的存貨天數為116天，較2020年第二季末低50天。存貨在手天數的連續下降屬於異常情況，原因在於存貨美元價值下降，以及季度營收增加39%。目前，我們的存貨水位偏精實。我們正非常努力將存貨恢復到支持未來成長所需的180至200天水準。

I would now like to turn to the outlook for the fourth quarter of 2020. We are forecasting Q4 revenue in the range of $218 million to $230 million. We also expect the following: GAAP gross margin in the range of 55.1% to 55.7%; non-GAAP gross margin in the range of 55.4% to 56.0%; total stock-based compensation expense of $21.8 million to $23.8 million, including approximately $700,000 that would be charged to cost of goods sold; GAAP R&D and SG&A expenses between $81.3 million and $85.3 million; non-GAAP R&D and SG&A expenses to be in the range of $60.2 million to $62.2 million; litigation expense should range between $1.8 million to $2.2 million; interest income is expected to range from $1.0 million to $1.4 million; fully diluted shares to be in the range of 47.1 million to 48.1 million shares.

接下來我想談談2020年第四季的展望。我們預估第四季營收介於2.18億至2.30億美元。我們也預期如下：GAAP 毛利率介於55.1%至55.7%；非GAAP毛利率介於55.4%至56.0%；股票基礎薪酬費用總額介於2,180萬至2,380萬美元，其中約70萬美元將計入銷貨成本；GAAP 研發與銷售、一般及管理（SG&A）費用介於8,130萬至8,530萬美元；非GAAP研發與SG&A費用介於6,020萬至6,220萬美元；訴訟費用預計介於180萬至220萬美元；利息收入預計介於100萬至140萬美元；完全稀釋後股數預計介於4,710萬至4,810萬股。

In conclusion, we will monitor market conditions closely and continue to execute. I'll now open the webinar up for questions.

總結來說，我們將密切監控市場狀況並持續執行。現在我將開放線上說明會進行提問。

(Operator Instructions)

（接線員指示）

Our first question comes from Tore Svanberg from Stifel.

我們的第一個問題來自 Stifel 的 Tore Svanberg。

Congratulations on the $1 billion run rate. First question is Q4 guidance. Could you talk a little bit about which are some of the end markets that's going to be performing in Q4? Obviously, I know communications is going to be down, but what about some of the other markets for the December quarter?

恭喜達到年化10億美元的營收運行率。第一個問題是關於第四季指引。您能否談談第四季哪些終端市場的表現會比較好？顯然我知道通訊會下滑，但12月季度其他市場的情況如何？

Tore, thanks for commenting on the $1 billion run rate. Yes, if you compare ourselves against Q3, obviously, that was a high watermark. So probably a more relevant comparison is against Q4 of 2019. And on that basis, we're expecting all of our major markets to be up significantly from the prior year. And then when you do the comparison against Q3, you'll see that there'll probably be declines in communications and computing and also in consumer. The consumer is seasonally adjusted, but we'll still expect to see improvements in industrial and automotive.

Tore，謝謝你提到年化10億美元的運行率。是的，如果拿我們自己與第三季相比，顯然那是一個高水位。因此更相關的比較可能是與2019年第四季相比。以此為基準，我們預期所有主要市場都將較去年同期大幅成長。而若與第三季相比，你會看到通訊與運算，以及消費性可能會下滑。消費性具有季節性調整，但我們仍預期工業與車用會有所改善。

Very good. And as my follow-up, you mentioned inventories are pretty lean. So can you just elaborate a little bit on what you're doing to try and get the inventories back up? You said you had some OpEx to maybe secure some foundry capacity, but anything else you can add on sort of how you're going to get back to that 180 days of inventory?

很好。作為追問，您提到存貨相當精實。能否再多說明一下你們正在做什麼來把存貨拉回來？您說可能會有一些營運費用（OpEx）用來確保晶圓代工產能，但還有其他可以補充的嗎？也就是你們打算如何回到180天的存貨水準？

Sure. I think as we acknowledged in Q3 that we were able to catch up as far as having adequate capacity in order to service near-term demand, and in giving guidance for Q4, that expectation follows along. When we look ahead over the course of the next 24 months, we previously mentioned that we're entering into new relationships with other fabs and expect to grow our overall capacity. So this will be an ongoing investment that we would project for at least about the next 6 quarters.

當然。我想我們在第三季已經承認，我們在產能充足性方面已能追上，以便滿足短期需求；而在給出第四季指引時，這個預期也延續下去。當我們展望未來24個月時，我們先前提到正在與其他晶圓廠建立新的合作關係，並預期提升整體產能。因此，這將是一項持續性的投資，我們預估至少會延續到接下來大約6個季度。

Great, and congratulations again.

很好，再次恭喜。

Thanks, Tore.

謝謝你，Tore。

Our next question comes from David Williams from Loop Capital.

我們的下一個問題來自 Loop Capital 的 David Williams。

Can you hear me?

你聽得到我嗎？

Yes, David, I can.

是的，David，我聽得到。

I think there is a mistake. It's Will Stein from Truist. I guess I'll just go. Bernie, first a clarification. The inventory target that you called out in your script, I think you said 180 to 200. I think that's 20 days higher than what you said on the last conference call. Is that correct? And if so, can you help us understand what's changed?

我想有個錯誤。其實是 Truist 的 Will Stein。我想我就直接問了。Bernie，先釐清一下。你在講稿中提到的存貨目標，我記得你說是180到200天。我想這比你在上次法說會上說的高了20天。這是正確的嗎？如果是，能否幫我們理解有什麼改變？

The previous metrics that we had been using were about 20 days lower, but we've really made this change as far as what we've been trying to explain to the analysts and to investors over the course of about the last 2 to 3 quarters. But nonetheless, I do want to address your question, which is in order for us to sustain the level of growth that we have in excess of our market, the industry that we have to have a higher level of inventory. So in other words, there is a mismatch. In other words, we are building the inventory today, but we're not going to -- for the sales that will occur 1 or 2 quarters out. And so it's not a perfect reflection for other companies where they're not growing as fast. They can maintain lower levels in terms of days, but here, again, we have to make an incremental investment in order to allow to support our growth.

我們先前使用的指標大約低20天，但我們其實在過去大約2到3個季度中，已經在向分析師與投資人說明這項變更。不過，我確實想回應你的問題：為了讓我們能維持高於市場的成長速度，我們必須持有更高水位的存貨。換句話說，這裡存在一個不匹配。我們今天在建立存貨，但這些存貨是為了1到2個季度之後才會發生的銷售。因此，對於成長沒那麼快的公司而言，存貨天數可能能維持在較低水準；但在我們這裡，我們必須做額外的投資，才能支撐我們的成長。

Let me add it. As you remember, end of the last year and we are at around 200 days of inventory. If we use that model and to meet this year growth, that probably -- that's about the right numbers. That's the basis. We -- that's where this 20 more days come from. And -- so if you go to a little more details, and MPS is a fabulous company, and yet, we have own technologies. This is very unique. I can't think of any of our competitors, they have -- they're in the same way of manufacturing, and I'll do the -- to fulfill their manufacturing. Most of them, they have their old fab. And so given the volatilities and also given the growth that we have and also number of product and address all the greenfield market segment, we need probably more than 200 days inventories.

我補充一下。如你所記得的，去年年底我們的存貨大約在200天左右。如果我們用那個模型來滿足今年的成長，那大概——那就是相當合適的數字。這就是基礎。我們——這就是多出這20天的來源。然後——如果再多講一點細節，MPS 是一家 fabless（無晶圓廠）公司，但我們擁有自有技術，這非常獨特。我想不出有任何競爭對手，他們在製造方式上——以同樣方式來完成他們的製造。大多數競爭對手都有自己的晶圓廠。因此，考量到波動性、我們的成長、產品數量，以及我們所切入的各個全新（greenfield）市場區隔，我們可能需要超過200天的存貨。

Okay. That helps a lot. If I can have one quick follow-up. The guidance, while great overall on revenue and EPS, the margins are a little bit different from what maybe some would have expected. And Bernie, I'm just wondering if you can tell us if the model we should be thinking about, which historically was that gross -- would grow at 10 to 20 bps a quarter. And op margin, either there was a, I guess, change in that view that perhaps we wouldn't get an operating margin leverage for the next year or 2. Maybe you could just update us on that model for both those lines.

好的，這很有幫助。如果我可以再快速追問一個問題：指引在營收與EPS方面整體都很不錯，但毛利率看起來與一些人可能預期的有點不同。Bernie，我想請問我們應該如何看待這個模型：過去歷史上毛利率——每季大約會增加10到20個基點（bps）。而營業利益率方面，是否你們的看法有所改變，也就是未來1到2年可能不會出現營業利益率的槓桿效應？能否就這兩條線更新一下你們對模型的看法？

Sure. And I think that you captured it very well is that obviously, our model has been to improve gross margin 10 to 20 basis points sequentially. Now a lot of factors weigh into being able to deliver against those results, including both our mix of business as well as what the market looks like. So again, you have to use these as guidelines, not as an absolute guarantee of what our performance will look like. And then on the operating expenses, right now, we are going to be continuing to invest in capacity, as I said, in each of the next 6 quarters. So that will be an additional layer of investment from what we've seen, and so as a result, we're not projecting our operating margins to improve significantly over the course of the next 2 years.

當然。我認為你抓得很到位：很明顯，我們的模式一直是讓毛利率逐季提升10到20個基點。現在，能否達成這些結果會受到許多因素影響，包括我們的業務組合以及市場狀況。因此，再次強調，你必須把這些當作指引，而不是對我們表現的絕對保證。至於營業費用方面，目前我們將如我所說，在接下來6個季度中的每一季持續投資於產能。因此，這會是在我們目前所見之上的額外投資層，結果就是，我們不預期未來2年內營業利益率會顯著改善。

Or OpEx, I think, is that right? In other words, op margin would just expand with gross, which is 10 to 20 bps a quarter? Or...

或者是OpEx，我想，是這樣對嗎？換句話說，營業利益率只會隨著毛利率擴張，也就是每季10到20個基點？或者……

Yes.

是。

Our next question comes from David Williams from Loop Capital.

下一個問題來自Loop Capital的David Williams。

Our next question comes from Quinn Bolton from Needham.

下一個問題來自Needham的Quinn Bolton。

Let me offer my congratulations on a very strong September and good December outlook. Bernie and Michael, these are sort of unprecedented times in the business, and I know you don't typically look out more than a quarter. But I guess, one of the questions I'm hearing from investors is, whether there is any sort of inflated demand still impacting the business in the December quarter. And wondering, to the extent you can give us any sort of thoughts on March, would March show a typical seasonal decline from the December quarter of, say, 3% to 5%, what you would see in a typical year? Or do you think it could show a greater seasonal factor? I know you don't typically go out 2 quarters, but again, this is really strong results here in the near term.

先恭喜你們9月表現非常強勁，且12月展望也很好。Bernie和Michael，這段時間對這個產業來說可說是前所未有，我知道你們通常不會展望超過一個季度。但我想投資人常問的一個問題是：12月季度的業務是否仍受到某種被放大的需求所影響？另外，若你們能對3月提供任何想法，3月是否會像一般年度那樣，較12月季度出現典型的季節性下滑，例如3%到5%？還是你們認為季節性因素可能更大？我知道你們通常不會往外看兩個季度，但畢竟短期內的結果真的非常強。

Let me answer that question. If you're talking about normal seasonality, then the outlook is great. And we have so many design in activities, and we see so many award projects. And -- but and as well as you know as well as I know, okay, this way in unprecedented era. Pandemics and geopolitical issues, and I can't predict, and frankly, I care less.

我來回答這個問題。如果你談的是正常的季節性，那麼展望很棒。我們有非常多的設計導入活動，也看到很多得標專案。但是——而且你也知道、我也知道，這是一個前所未有的時代。疫情與地緣政治問題，我無法預測，而且坦白說，我也不太在意。

And if I can just add to that is that. I really think that there are certain aspects of our business that we have in good control, as Michael hit on as far as the design win activity, but right now, we do not have control over what the end customer demand is ultimately going to be about. So I think that as far as executing against our strategy and seeing it show up in our results, I think we're going to continue along that path, but there are just too many factors for us. It would be pure speculation at this point.

如果我再補充一下：我確實認為，我們的業務有某些面向是我們能很好掌控的，正如Michael提到的設計導入（design win）活動；但目前，我們無法掌控最終客戶需求究竟會是什麼。因此，就執行我們的策略並讓它反映在結果上而言，我認為我們會持續沿著這條路走下去，但對我們來說變數太多了。此刻任何判斷都純屬臆測。

Okay. Maybe I could ask, in past calls, you've oftentimes given us some idea of your sort of starting backlog coverage, and I know that typically runs a very high percentage of the revenue guidance. I guess it's with some of the delinquencies you had a past quarter, you had very strong backlog. But as you head into the December quarter, so backlog sort of back to more normal levels that it would have typically run in the last couple of years? Is it still elevated? Can you give us any thoughts on kind of the backlog coverage?

好的。也許我可以問一下：在過去的電話會議中，你們常常會給我們一些關於期初在手訂單（backlog）覆蓋率的概念，我知道那通常占營收指引的比例很高。我想，因為你們上一季有一些延遲交付（delinquencies），所以在手訂單非常強。但當你們進入12月季度時，在手訂單是否回到過去幾年通常的較正常水準？還是仍然偏高？你們能否談談在手訂單覆蓋率的大致情況？

Well, as the December quarter -- go into December quarters, we are still facing delinquencies. So the capacity is still limited.

嗯，進入12月季度時——我們仍然面臨延遲交付。所以產能仍然受限。

And I think what we're seeing here is that, as I said, in the guidance that we offered is it anticipates both the demand, including the backlog that we had coming into the quarter, and it's matched with what our supply chain and capacity limits are. So I guess that I would probably offer that we have some ability for upside, but it's going to be a little bit limited by supply chain.

我認為我們看到的是：如我所說，我們提供的指引同時考量了需求（包括我們在進入該季度時的在手訂單），並且與我們供應鏈與產能限制相匹配。所以我想我大概會說，我們有一些上行空間，但會受到供應鏈的限制，因此上行幅度會比較有限。

Next question comes from Alex Vecchi from William Blair.

下一個問題來自William Blair的Alex Vecchi。

Michael and Bernie, congratulations, again, in a very volatile environment. If we can just touch base a little more on the automotive segment, this appears to be the highest revenue quarter you guys have posted since really starting to gain traction in the segment. I've realized the environment is just starting now to get a little bit better. But can you maybe update us on how we should think about the long-term growth targets there? In the past, you've said 40% to 60% growth. Obviously, that may be a little premature at this point, but perhaps, update us on how you're feeling on that segment.

Michael和Bernie，再次恭喜你們在非常波動的環境中取得佳績。如果我們再多談一點汽車（automotive）部門，這看起來是你們自從真正開始在該領域取得進展以來，所公布的最高營收季度。我知道整體環境現在才剛開始好轉一些。但你們能否更新一下，我們應該如何看待該領域的長期成長目標？過去你們曾說過40%到60%的成長。顯然，現在可能還有點言之過早，但也許請更新一下你們對該部門的看法。

I would probably say that automotive is one of the more exciting end markets for us for the next several years. Now if you look at our track record in 2019 and 2020, 2019 was affected by the recession, 2020 by factory closings related to the COVID-19 pandemic. So again, those are circumstances that were largely outside of our control. But what we're seeing is that we're expanding now from our traditional infotainment base into some of these more exciting technologies, including the lighting systems, the ADAS and the autonomous driving. So we think that this is a sustainable revenue growth should be well ahead of what our corporate average is going to be. At one time, we were promoting concept of being able to grow consistently at 20% to 60% per year, but that would probably back off of that, down to a more reasonable between 30% and 40%, but still a very exciting end market for us.

我大概會說，汽車是我們未來幾年最令人興奮的終端市場之一。若看我們在2019與2020年的紀錄，2019受到景氣衰退影響，2020則受到COVID-19疫情相關的工廠停工影響。所以再次強調，那些情況大多不在我們的控制範圍內。但我們看到的是，我們正從傳統的車載資訊娛樂（infotainment）基礎，擴展到一些更令人興奮的技術，包括照明系統、ADAS以及自動駕駛。因此我們認為，這將是可持續的營收成長，且應會明顯高於我們公司的平均水準。曾經有一段時間，我們宣傳能夠每年穩定成長20%到60%的概念，但我們可能會把這個目標下修到更合理的30%到40%之間，但對我們而言仍是非常令人興奮的終端市場。

That's a (inaudible) talking. Okay. I -- frankly, we don't have -- I don't have it on the clear pictures. And what's the growth? Frankly, I never put MPS' as we have to grow a certain percentage, okay? And what I'm looking at it is, which -- what kind of product, which project and how well we're positioned, and which customers, which projects we want designing. And a lot more importantly, okay, what kind of products in the pipeline. That really drives the top line. And so how we predicted what's the next lowest growth percentage, I can't tell you.

那是（聽不清）在講。好的。我——坦白說，我沒有——我沒有很清楚的圖像。成長是多少？坦白說，我從來不會把MPS設定成我們必須成長某個百分比，好嗎？我在看的，是什麼樣的產品、什麼專案、我們的定位有多好、哪些客戶、哪些專案我們想要去做設計導入。更重要的是，好嗎，產品線管道（pipeline）裡有什麼樣的產品。那才真正驅動營收。所以你要我預測下一個最低的成長百分比，我沒辦法告訴你。

No, no, that's fair, but it's good to hear that the trajectory seems to be sort of back on track. And then similarly, I don't think in the prepared comments you guys commented on the extent of the pull-ins into Q3. Is it fair to say that the vast majority of the sequential decline in Q4 is related to the pull-in activities? Or is there also a little bit of normalization of demand in there as well?

不，不，這很合理，但很高興聽到趨勢似乎回到正軌。然後同樣地，我想在你們的事先準備講稿中，你們沒有評論Q3提前拉貨（pull-ins）的程度。是否可以說，Q4的絕大部分季減都與提前拉貨活動有關？還是其中也包含一些需求正常化？

Well, we had a lot of pulling from Q3 and partially in Q4. And well still -- as I said earlier, we're still facing delinquencies. And so I think that's a combination of the growth and also in a capacity shortage from that past. Okay.

嗯，我們有很多從Q3提前拉貨，部分也拉到Q4。而且——如我先前所說，我們仍然面臨延遲交付。所以我認為這是成長與先前產能短缺的綜合結果。好。

From that past, okay. And then lastly, if I can, on -- just on the days inventory, the 180 to 200 days, how long will it take you to get back to that level? Is that something you can achieve in Q4? Are we really looking to more the first half of 2021?

從先前的情況來看，好。最後，如果可以的話，關於——就庫存天數而言，180到200天，你們需要多久才能回到那個水準？這是你們在Q4就能達成的嗎？還是我們其實要看到2021年上半年？

Well, if the market slows down, we'll get there quickly. I think that -- okay, we -- again, and this is -- we're at uncomfortable levels. I can meet that. And so we want to increase as much as we can. And now our engineers working the fabs, okay, working at the different fabs and to get the -- to qualify the process and technologies. And so we hope that in the next 6 months, we can catch up.

嗯，如果市場放緩，我們很快就能達到。我認為——好吧，我們——再說一次，而且這是——我們目前處在令人不舒服的水位。我可以接受這點。所以我們希望能盡可能提高。現在我們的工程師在晶圓廠裡工作，好嗎，在不同的晶圓廠裡，去——去認證製程與技術。所以我們希望在接下來 6 個月內能追上。

Our next question comes from Joshua Buchalter from Cowen.

下一個問題來自 Cowen 的 Joshua Buchalter。

Let me echo my congrats. As for my first question, earlier this year, you'd mentioned bringing in additional 12-inch fab online in the second half. I was wondering, was this the primary driver of the additional capacity you were able to secure in the third quarter? And then looking ahead, how much more capacity do you feel you need to both serve your customers and get the inventory levels up to that that you raise 180 to 200 days?

讓我也呼應一下我的恭喜。關於第一個問題，今年稍早你曾提到在下半年會再導入一座額外的 12 吋晶圓廠上線。我想請問，這是否是你們在第三季能夠取得額外產能的主要驅動因素？再往前看，你們覺得還需要多少額外產能，才能同時服務客戶並把庫存水位提高到你們所提到的 180 到 200 天？

Yes. Okay. The first question is, yes, absolutely, okay. We said earlier this year, we expanded another 12-inch fab, we had -- wasn't in our plan, but we hurried up in get that thing going, okay? And we start shipping product in Q3, okay? That's a very, very -- that's unprecedented, and thanks to our people. And they really worked day and night to manage that -- to manage and qualify these products. Going forward, it's a -- we just want to expand the capacity to reach 180 to 200 days inventory. And going in future, if we have a very linear world, and I came with that is very easy to calculate, okay? I think we are living in a very nonlinear environment and 200 days inventory, that's what we want to do.

是的。好。第一個問題，是的，絕對是，好嗎。我們今年稍早說過，我們擴充了另一座 12 吋晶圓廠，這——原本不在我們的計畫內，但我們加快腳步把它啟動起來，好嗎？而且我們在第三季開始出貨產品，好嗎？這是非常、非常——這是前所未有的，要感謝我們的同仁。他們真的日以繼夜地工作，去管理——去管理並認證這些產品。往前看，這——我們只是想擴充產能，把庫存拉到 180 到 200 天。再往未來，如果世界是非常線性的，而我帶著那樣的假設，那就很容易計算，好嗎？但我認為我們正處在一個非常非線性的環境，而 200 天庫存，就是我們想要做到的。

Got it. That's very helpful. And then for my follow-up, a bit of a bigger picture question. I mean you guys are now $1 billion -- or you reached $1 billion run rate this quarter. Are you seeing any increase or changes in the competitive responses from your peers as you move higher on both a unit basis and as well in the socket value?

了解。這很有幫助。接著我的追問，稍微是更宏觀的問題。你們現在已經是 10 億美元——或者說本季達到 10 億美元的年化營收規模。當你們在出貨量與每個插槽價值（socket value）兩方面都往上走時，你們是否看到同業競爭對手的反應有任何增加或改變？

Our ASP is increasing and as -- when we move to high-end market segments. And so that's -- our competitions are always pretty similar. I mean our customer doesn't even know MPS' is $1 billion. There are no MPS. MPS is very small potatoes against all these giants.

我們的 ASP 正在上升，因為——當我們往高階市場區隔移動時。所以——競爭狀況一直都差不多。我的意思是，我們的客戶甚至不知道 MPS 已經到 10 億美元。沒有什麼 MPS。相較於這些巨頭，MPS 只是小咖。

But I think you go back to what our competitive basis is, and it really is that we're winning with superior technology and a higher level of customer service, and I think that's what our customers are recognizing as far.

但我認為回到我們競爭的基礎，真正的原因是我們以更優越的技術與更高水準的客戶服務在贏，我想這也是我們的客戶目前所認可的。

That's right, yes.

沒錯，是的。

Congrats, again.

再次恭喜。

Thank you.

謝謝。

Our next question comes from Rick Schafer from Oppenheimer.

下一個問題來自 Oppenheimer 的 Rick Schafer。

I'll add my congratulations as well. Maybe just a quick follow-on, if I can, on that production question. I know you guys have been pulling in new production and foundry partners pretty aggressively. I mean I know you've spoken, I think, in the past about sort of once it's done, the goal is to kind of be at that $1.2 billion or so in kind of annual revenues. And that's not a lot of headroom for you guys at your current run rate at your current growth rate. So I'm curious, is that $1.2 billion still the right number we should be thinking of in terms of your capacity when all said and done? And maybe what does the time line look like for that now since you're pulling stuff in?

我也要補上恭喜。如果可以的話，我想就剛才的生產問題再追問一下。我知道你們一直相當積極地導入新的生產與晶圓代工夥伴。我記得你們過去曾談到，一旦都到位，目標大概是年營收 12 億美元左右。但以你們目前的年化規模與成長速度來看，這個空間不算大。所以我想問，當一切都完成後，以產能角度來看，12 億美元仍然是我們應該思考的正確數字嗎？另外，既然你們正在把一些事情提前，現在的時間表大概會是什麼樣子？

Yes. Okay. Obviously, the $1.2 billion is not enough, okay? And if you want to building a fast on the 200 days inventories, it's more than double right now. So that's what we try to do, and it's not easy. And that's what we're aiming for, just to double it.

是的。好。很明顯，12 億美元是不夠的，好嗎？而且如果你想快速把庫存建立到 200 天，那現在需要的會是兩倍以上。所以這就是我們正在努力做的事，而且不容易。我們的目標就是把它翻倍。

And I think that in the past, securing fab capacity and being able to introduce new products at the rate that we are is really nothing new to MPS. But the scale has been getting bigger, and so that's why the investments and the time that we have to plan ahead makes a difference. And so all we're doing is preparing both for the capacity, but also recognizing, acknowledging the investment that goes with it.

我想過去能夠取得晶圓廠產能、並以我們目前的速度導入新產品，對 MPS 來說其實不是新鮮事。但規模變得更大了，所以我們必須提前規劃的投資與時間就會產生差異。因此我們所做的就是同時為產能做準備，也要認知並承認這背後所需的投資。

So if we fast forward 18 months, 24 months, I mean, is there a bogey for what -- where you think your capacity will be? I mean if it's not $1.2 billion, is it -- I assume higher than that, but I'm just curious if there is a number you can share or if you know at this point?

所以如果我們把時間快轉到 18 個月、24 個月之後，我是說，有沒有一個目標值——你認為你們的產能會到什麼程度？如果不是 12 億美元，我想應該更高，但我只是好奇你是否能分享一個數字，或你現在是否已經知道？

We're doing -- I'm sorry, I wasn't said clear. We're shooting for $2 billion.

我們正在——抱歉，我剛才講得不夠清楚。我們的目標是 20 億美元。

$2 billion? I'm sorry, I misunderstood. Sorry. Thanks, Michael. And then just maybe a question, if I could, on 5G. And maybe I was hoping you could talk a little bit about your exposure to the Tier 1 5G ramp, OEMS, the one that you're allowed to sell to, of course. Where you are in terms of revenue ramp or design win activity? I mean are any of these guys buying QSMod yet? Or are you sort of initially seeing more POL issues kind of similar to what you saw in the early stages of your cloud server ramp?

20 億美元？抱歉，我誤會了。抱歉。謝謝你，Michael。再來如果可以的話，我想問一個關於 5G 的問題。我希望你能談談你們在 Tier 1 5G 放量、OEM（當然是你們被允許銷售的那些）方面的曝險程度。就營收爬坡或設計導入（design win）活動而言，你們目前進展如何？我的意思是，這些客戶有人已經在買 QSMod 了嗎？還是你們一開始看到的更多是 POL（Point-of-Load）方面的需求，類似你們雲端伺服器放量初期所看到的情況？

I think 5G overall at an early stage. And all I can say now that we engage with all the 5G station makers. And we do have a designing activity, and we do have award projects, and -- but it's not significant revenue yet.

我認為整體 5G 還在早期階段。我現在能說的是，我們與所有 5G 基站製造商都有接觸。我們確實有設計活動，也確實有得標的專案，並且——但目前還沒有顯著的營收。

Our next question comes from Ross Seymore from Deutsche Bank.

下一個問題來自 Deutsche Bank 的 Ross Seymore。

I want to give the same congrats that everybody else did this to pen this work here. A couple of quick questions. First, when do you expect the delinquencies to be gone?

我也想給出跟大家一樣的恭喜，這裡的表現很亮眼。兩個簡短問題。第一個，你們預期欠交（delinquencies）什麼時候會消失？

If the market slows down, we're going to do that next quarter. If the demand is still that strong, we continue to face that. And we see some not as bad as last quarters -- last 2 quarters.

如果市場放緩，我們下個季度就會做到。如果需求仍然那麼強，我們就會繼續面臨這個狀況。不過我們看到的情況沒有前幾季——前兩季那麼糟。

And then on the supply side of the equation somewhat, but maybe even more of a regulatory issue. What's the exposure? And how are you dealing with the Huawei ban? And does the SMIC band have any impact on you, whether it's in the supply side or otherwise?

接著是供應端的問題，但可能更偏向法規議題。你們的曝險是什麼？你們如何因應華為禁令？另外，中芯國際（SMIC）禁令是否對你們有任何影響，不論是在供應端或其他方面？

Well, Huawei is not our -- not our suppliers, okay? But SMIC, okay, it is our supplier. So far, it's not affecting us, and we don't know. We can't speculating, okay, what does all these policy means that came in. But on the other hand, and we diversified our foundry sources, okay? We're starting from a beginning of this year. We speed it up.

嗯，華為不是我們的——不是我們的供應商，好嗎？但中芯國際，好嗎，它是我們的供應商。到目前為止，這沒有影響到我們，而我們也不知道。我們不能臆測，好嗎，這些新出來的政策到底意味著什麼。但另一方面，我們也分散了我們的代工來源，好嗎？我們從今年年初就開始做，並且加快了速度。

So on the Huawei side, just to be clear, you had them as a customer, I believe, in the first half of the year one way or the other. And I assume you're no longer shipping to them, and I just wondered if that's part of fourth quarter guidance is then going to 0.

所以在華為這邊，為了確認清楚，我相信你們在今年上半年曾以某種方式把他們當作客戶。我假設你們現在已經不再出貨給他們了，我想問這是否意味著第四季的指引中，對他們的出貨會降到 0？

Well, we can say 0 or some nonzero, okay and so far, we cannot ship. And -- but there is other rules and regulations coming out and all the other permits, I mean, we cannot speculating or what kind of things we can do. And it's all depending on our government now.

嗯，我們可以說是 0 或某個非零值，好嗎？到目前為止，我們不能出貨。而且——但還有其他規則與法規會陸續出來，以及所有其他許可，我的意思是，我們不能臆測，或我們能做哪些事。現在一切都取決於我們的政府。

I guess the last question then away from government type questions is, Bernie, you and Michael have had a framework in -- for many, many years about the percentage superior growth versus the analog market that you guys have delivered. I think it's been kind of a 10% to 15% positive delta in your favor. Is that rule just thrown out the window now? This year is 25, 30 points above that peer group. And I know 1 year doesn't make a trend, but as you look at it, is there something that's creating some semblance of escape velocity where that delta expands meaningfully just due to the breadth of your design wins, the markets you're targeting? Or do we expect a little bit of a reversion to the mean in 2021 after such a great 2020?

我想最後一個問題，先不談政府類型的問題：Bernie，你和 Michael 多年來一直有一個框架——關於你們相對於類比市場所交付的超額成長百分比。我記得大概一直是對你們有利的 10% 到 15% 正向差距。這個規則現在是不是就被拋到窗外了？今年你們比那個同業群高出 25、30 個百分點。我知道 1 年不代表趨勢，但從你們的角度看，是不是有什麼因素在形成某種「逃逸速度」，讓這個差距因為你們設計導入（design wins）的廣度、你們鎖定的市場而顯著擴大？還是我們應該預期在 2021 年、在 2020 年如此亮眼之後，會有一些回歸均值？

Well, I can't -- as I said, the world is not linear. And I remember and I was facing a lot of -- I was a face -- I was facing a lot of questions about when our model is like a 20% to 25% growth rate. In 2016, '17 or 2015, '16, and we will criticize and will never get there, although we're somewhere around 17%, 18%, okay? And so -- and you asked so many times, you forced me say it at the time. I think around 2016, I said that -- but 2018, '19, we're going to get it over 20%, okay? And that comment is pulling off from my ears, okay? I don't have a -- this is not a science, okay? I mean in a nonlinear world, it's very difficult to predict. And so I said earlier, okay, we only anticipating and by staffing the inventories and by stock inventories. And just get ready, and of course, and the world crashes, okay. Of course, we're not we're going to start to depleting inventories. And okay, we're not building as many as much, okay? And so we can modulate the inside a little bit, okay? But for the growth rate, I see all these designing activities and all these projects. I will say last couple of years is better than 2, 3 years before. And we awarded a lot more high-value products, high-value sockets.

嗯，我不能——如我所說，世界不是線性的。我記得我當時面對很多——我面對很多問題，關於我們的模型是否像 20% 到 25% 的成長率。在 2016、'17 或 2015、'16 的時候，大家會批評說我們永遠到不了，雖然我們大概在 17%、18%，好嗎？所以——你們問了很多次，你們當時逼得我說。我想大概在 2016 年我說過——到 2018、'19 我們會把它拉到 20% 以上，好嗎？而那句話一直在我耳邊迴響，好嗎？我沒有——這不是科學，好嗎？在一個非線性的世界裡，很難預測。所以我先前也說過，好嗎，我們只能預期，透過人力配置與備貨、建立庫存來做準備；然後當然，世界崩盤了，好嗎。當然，我們就開始去化庫存。然後，好吧，我們就不再建那麼多、也不再建那麼快，好嗎？所以我們可以在內部稍微調節一下，好嗎？但就成長率而言，我看到所有這些設計活動、所有這些專案。我會說過去這幾年比再往前 2、3 年更好。而且我們拿到更多高價值產品、高價值插槽（sockets）。

Our next question comes from Tore Svanberg from Stifel.

我們下一個問題來自 Stifel 的 Tore Svanberg。

I just had a follow-up, Michael, on e-commerce. That's obviously a business model that could help you manage capacity, inventory and so on and so forth. Have you been able to keep up with the investments there in this environment? Maybe you could just update us on where the e-commerce business stands today.

我有一個追問，Michael，關於電商。那顯然是一種商業模式，可以幫助你們管理產能、庫存等等。你們在這種環境下，是否還能跟上那方面的投資？也許你可以更新一下，電商業務目前的狀況。

We didn't prepare the numbers. We're doing really good. And I thought that there was nobody going to ask the question because...

我們沒有準備數字。我們做得非常好。而且我以為不會有人問這個問題，因為……

We have so much other news.

我們還有那麼多其他消息。

It is okay. I think that we -- I can -- I feel -- I can say, we've figured out the way to do it. And so until we prove ourselves wrong again, the new website I think you see it, okay? It's very different, and we increased a whole lot more clicks and the customers stay on the pages for a lot longer. And also, we're creating a virtual labs and that part also help the e-commerce. So we don't have the product FAEs and have them pounding the payment to generate opportunities, and we're using the website. And the numbers and the increase by increased weekly, and I'm very pleased and the -- and so we're talking about a few hundred percentage increase from a small number. It doesn't mean a lot, but for us, and we learned it. That's the trick. That's the area we're going to do, okay? We're going to enhance that.

沒關係。我想我們——我可以——我覺得——我可以說，我們已經找到了做這件事的方法。所以在我們再次證明自己錯之前，新網站我想你們也看到了，好嗎？它非常不一樣，我們的點擊量增加了很多，客戶在頁面停留的時間也長了很多。另外，我們也在建立虛擬實驗室（virtual labs），那部分也有助於電商。所以我們不需要產品 FAE 一直去敲門、去推動機會，而是用網站來做。數字每週都在增加，我非常滿意——所以我們談的是從一個很小的基數出發，成長了幾百個百分點。這不代表絕對值很大，但對我們來說，我們學到了。這就是訣竅。這就是我們要做的領域，好嗎？我們會加強它。

I didn't know that there's an even higher arching strategy here where e-commerce is a significant part of, and it's really how do you go after underserved customers. And what was surprising to me is, we did a look at the last 3 years as far as how many customers did we have that were under $100,000 and how is that base growing. Because if you can use the linear model, where what they used to do is get in there early...

我之前不知道這裡還有一個更高層次的策略：電商是其中很重要的一部分，而核心其實是你要如何去服務那些被忽略、服務不足的客戶。讓我驚訝的是，我們回頭看了過去 3 年：我們有多少客戶的年營收（或採購額）低於 10 萬美元，以及這個客群的基礎是如何成長的。因為如果你可以用 Linear 的模式——他們以前的做法是很早就進去……

The linear technology.

Linear Technology。

Linear technology, getting there early and then develop these long-term relationships and then you grow with their growth. And so as a part of that strategy, I think we're -- the numbers I looked at, we're doing a very good job. They're starting to bear dividends.

Linear Technology，很早就進去，然後建立這些長期關係，接著隨著客戶的成長而一起成長。所以作為那個策略的一部分，我想我們——我看到的數字顯示，我們做得非常好。它們開始帶來回報。

We increased these number like 3 or 4 times.

我們把這個數量提高了大概 3 到 4 倍。

Yes.

是的。

And from a small base. And that is a significant, and it's happened in the last few years. And now clearly, we can put the metrics. And so old saying, this is what you measure what you get, okay? And we know how -- start to know how to -- what to measure it, and that's, to me, is very important. But I'm looking at the revenue-wise, okay, it became meaningful, but I don't have a clear details. I don't want to have a pull out my hair numbers.

而且是從一個小基數開始。這是很顯著的，而且是在過去幾年發生的。現在很清楚，我們可以建立指標。所以老話說，你衡量什麼，就會得到什麼，好嗎？而我們開始知道要怎麼——知道要衡量什麼，對我來說非常重要。但我看營收面，好嗎，它變得有意義了，但我沒有清楚的細節。我不想拿出那些讓我抓狂的數字。

Our next question comes from Rick Schafer from Oppenheimer.

我們下一個問題來自 Oppenheimer 的 Rick Schafer。

Michael and Bernie. And speaking of things that haven't been talked about as much maybe in the last couple of quarters. I'm curious if you could give us an update on the design win pipeline or revenue color for your converter business. Has -- I'm just curious, has ADI, Maxim opened any doors for you guys? And have you seen the level of engagement with customers increase maybe as a side note or are you seeing more analog, does it line into your resumes? Or is it easier to find guys? So I'm just curious if you could give us any update there.

Michael 和 Bernie。說到一些在過去幾季可能沒有被談那麼多的事情，我想請你們更新一下你們轉換器（converter）業務的設計導入管線（design win pipeline）或營收展望的色彩（revenue color）。我只是好奇：ADI、Maxim 是否為你們打開了任何門？你們是否看到與客戶的互動程度提高——順帶一提，或是你們看到更多類比人才，會投到你們這邊（履歷）？或者更容易找到人？所以我想請你們更新一下那邊的狀況。

It's -- finding good people as always hard. All these good company that keep the good people, and that's always a challenge, okay? And so we know that we need a diversified. And that came in a lot of times, okay, in the last 10, 15 years or more likely the last 20 years. We have a lot of people from China. And now 2 or 4, 5 years ago, we migrated to Europe and the Taiwan and outside of the Mainland China, okay? Now in the last couple of years, it will come back to U.S., and we do see, not necessarily in the Bay Area, but other parts of the countries, we do find some talents there.

要——找到好的人才一如既往地困難。所有這些好公司都把好的人留住，這一直是個挑戰，好嗎？所以我們知道我們需要多元化。而這在很多時候都出現過，好嗎，在過去 10、15 年，甚至更可能是過去 20 年。我們有很多人來自中國。然後在 2 或 4、5 年前，我們轉向歐洲、台灣，以及中國大陸以外的地方，好嗎？而在過去幾年，又會回到美國；我們也看到，不一定是在灣區，但在美國其他地區，我們確實能找到一些人才。

And Michael, any update on what's happening with converters for you guys?

那 Michael，你們的轉換器那邊有什麼最新進展嗎？

The converters, which...

轉換器，那個……

The signal chain stuff the team you brought in. I think it's been a couple of quarters since we talked about ADAS.

你引進的那個訊號鏈團隊。我想我們已經有幾季沒談 ADAS 了。

High-performance analog, yes.

高效能類比，是的。

Oh, yes. The data converters. Okay. Yes, yes, yes. Okay. I think we received the first chip, okay?

喔，是的。資料轉換器。好。是的、是的、是的。好。我想我們已經收到第一顆晶片了，好嗎？

Prototype.

原型。

Yes. And I think we're building a solutions and as most of the time, the first chip will have some bugs, but we -- it's weekly, and we are building a prototype, okay? We still can't put in a system yet now.

是的。我想我們正在打造解決方案，而通常第一顆晶片會有一些 bug，但我們——每週都在改進，我們正在做原型，好嗎？我們現在還不能把它放進系統裡。

Our next question comes from William Stein of Truist.

我們的下一個問題來自 Truist 的 William Stein。

Follow-up from before. We're just -- someone else asked about e-commerce, but I'm hoping you might give us an update on the eMotion and module business and maybe the programmable traction generally. I think about these as sort of separate from e-commerce, maybe they're not as separate, but an update on this part of it would be really helpful.

延續先前的追問。我們只是——剛剛有人問到電商，但我希望你們能更新一下 eMotion 與模組業務的進展，或更廣泛地談談可程式化牽引（programmable traction）。我把這些視為某種程度上不同於電商的業務，也許其實沒那麼分開，但若能更新這一塊會非常有幫助。

Yes, I think we use that e-commerce platform to promote those products. And that eMotion side, I think the revenues -- I had to say some number now otherwise I don't know whether you guys think of whether I'm -- I do have a numbers. I want to have Bernie's, okay. Sometimes it increase almost double. The models -- the motion side.

是的，我想我們會用那個電商平台來推廣那些產品。至於 eMotion 那一塊，我想營收——我現在得講個數字，不然我不知道你們會不會覺得我——我確實有數字。我想用 Bernie 的數字，好嗎。有時候它幾乎成長到接近翻倍。那些型號——運動控制那一塊。

Yes. The eMotion is right in that sort of transition phase because we have a lot of design wins that are going in. So last year, the revenue run rate was somewhere in the $10 million to $12 million, but now the doubling is going to start, particularly as we go into both automotive and industrial applications.

是的。eMotion 正處於那種轉換期，因為我們有很多設計導入（design wins）正在進來。所以去年營收的年化運行率大約在 1,000 萬到 1,200 萬美元之間，但現在翻倍的成長將開始，特別是當我們進入汽車與工業應用時。

Yes. Yes. So I'm correct. It was about double.

是的。是的。所以我說得沒錯。大約是翻倍。

Okay. I think also when we look at the modules business, that is taking off very nicely.

好的。我想另外當我們看模組業務時，它的成長也非常不錯、正在很漂亮地起飛。

The modules started with a smaller base, like a few hundred percent increase, okay? That was $40 million -- $30 million, $40 million, okay.

模組一開始的基期比較小，所以成長是幾百個百分點的增加，對吧？那大概是 4,000 萬美元——3,000 萬到 4,000 萬美元，對吧。

And was the -- is the strength that you're seeing there at all related to the pull-ins and delivering against delinquencies that you had previously? Or is this part of the rest of the business? What I want to think of as core that might not have...

那你們在那裡看到的強勁表現，是否與先前的拉貨（pull-ins）以及針對先前延遲交付（delinquencies）的出貨有關？還是這是業務其他部分的一環？我想把它視為核心業務的一部分，可能不會……

No, it's a small part of it is due to delinquencies. I mean this is a new market segment. And people from -- order from online, and we never see those, okay? I mean -- and our -- it is not our own internet and our own website from our distributors, and these are very small customers. They never all those ports before. So -- and that's although the numbers is small, but the revenue is still small, but the large number of our customers, and they use these are plunging play modules. And so what we -- and they can just plug-in, and they don't have to do any design. And since you mentioned the programming portion and that's part of what we learned that our customer doesn't even want to do programs, okay? They want us to do it, okay? And so we created virtual labs, and we -- customer tell us what they want, okay? And we show, in our labs, we program everything, and then we ship, okay? It's -- so now we can talking about is -- it's really a custom design for each customer, and that is taking off, and I'm very glad to see it.

不，只有一小部分是因為延遲交付。我是說，這是一個新的市場區隔。而且人們會——從線上下單，我們以前從來沒看過那些，對吧？我的意思是——而且這不是我們自己的網路或我們自己的網站，而是透過我們的經銷商；這些都是非常小的客戶。他們以前從來沒有那些埠口（ports）。所以——雖然數字不大，但營收仍然不大，不過我們的客戶數量很多，他們使用的是這些即插即用（plug-and-play）的模組。因此我們——他們可以直接插上就用，不需要做任何設計。你提到可程式化的部分，這也是我們學到的一點：客戶甚至不想自己寫程式，對吧？他們希望我們來做，對吧？所以我們建立了虛擬實驗室（virtual labs），然後——客戶告訴我們他們想要什麼，對吧？我們在實驗室裡把所有程式都寫好，然後出貨，對吧？所以現在我們談的是——基本上是為每位客戶做客製化設計，而這正在起飛；我很高興看到這樣的進展。

And just a final comment there is on the modules, they're not necessarily tied to any one end market. They're actually very broad-based. Initially, we thought that they would be plug-and-play solutions, particularly for prototyping or small volumes, but it turns out that they're actually going to mainstream production.

最後補充一點，關於模組：它們不一定綁定任何單一終端市場，實際上覆蓋面非常廣。一開始我們以為它們會是即插即用的解決方案，特別用於原型設計或小量生產，但結果顯示它們其實會走向主流量產。

Yes. Yes. And so that's something we learned, and I'm a former engineering, okay. I'm skilled engineers, our people and we created a great product that we see it, and we're parting like a slowly parameters, so many parameters on the website. They can program it and they can see what the result from simulations. And it turned out to be okay, and we put a lot there nobody looking at it and we're wondering why. And -- so we reduced to half, and then we cut another half the reduced to 5, 6, 7, they still don't want to see it. And they want to take the numbers in a total, you do that for me, okay, and that's great. We can do the work, they pay for it, too. That's fine.

是的。是的。所以這是我們學到的事情；我以前是工程師，對吧。我們有很強的工程師團隊，我們做出一個很棒的產品。我們看到它，然後我們在網站上放了很多參數，慢慢地加了很多參數。他們可以自己設定、也可以看到模擬結果。結果還可以，但我們放了很多東西卻沒有人看，我們就在想為什麼。然後——我們把它減半，再減半，最後縮到 5、6、7 個，他們還是不想看。他們想要的是：你把需求整套接過去，替我做，對吧？那很好。我們可以做這些工作，他們也願意付費。這沒問題。

Our next question comes from Quinn Bolton from Needham.

我們的下一個問題來自 Needham 的 Quinn Bolton。

Just wanted to see if you might be able to give us an update on your efforts in the GPU space for either desktop or data center GPUs. Just looking at the power consumption of those devices, I think you're seeing desktop GPUs now consuming up to 300 watts. I think data center, maybe up to 400 watts. You guys, I think I talked about that back at Analyst Day as a potential opportunity. Just wondering if you're starting to see any real traction or if you start to need in the curve on either the sort of the gaming or the data center side of GPUs.

想請教你們是否能更新一下在 GPU 領域的進展，無論是桌上型或資料中心 GPU。從這些裝置的耗電來看，我想你們看到桌上型 GPU 現在耗電可達 300 瓦；資料中心可能可達 400 瓦。我記得你們在分析師日（Analyst Day）提過這是一個潛在機會。想了解你們是否開始看到任何實質進展，或是在遊戲端或資料中心端的 GPU 上開始出現一些動能。

Yes. We're seeing substantial movement on both. We probably started out earlier on the desktop, where we started generating revenues with this about 18 months to 2 years ago. And now we're moving into the data center where we actually are starting to ramp, and in particular, 48 volt for artificial intelligence. So the opportunities are significant, but we're still at the very early stages of this market. So fundamentally, we're very well positioned, but it's still going to be another year or 2 before we still -- we move the dial with revenue ramp.

是的。我們在兩邊都看到顯著的進展。我們可能較早從桌上型開始，大約在 18 個月到 2 年前就開始在這方面產生營收。現在我們正進入資料中心，實際上也開始爬坡，特別是用於人工智慧的 48 伏方案。所以機會很大，但我們仍處於這個市場非常早期的階段。基本上，我們的布局非常到位，但在營收爬坡真正帶動數字之前，可能還需要再 1 到 2 年。

Those are AI Bernie is talking about, these are over 1,000 watts, and it's not 200 or 300 or 400-watt levels. If you get to that high level, you're only talking about only a few companies, they can supply those types of product. Again, in I think we are in good positions and -- but always can be better.

Bernie 談的是 AI，那些是超過 1,000 瓦的，不是 200、300 或 400 瓦等級。如果到那麼高的功率水準，你談的就只有少數幾家公司能供應那類產品。再說一次，我想我們的位置不錯——但總是可以更好。

(Operator Instructions)

（接線員指示）

There appear to be no further questions. I would now like to turn the webinar back over to Bernie.

看起來沒有其他問題了。現在我想把網路研討會交回給 Bernie。

Great. Thanks, Gen. I'd like to thank you all for joining us for this conference and look forward to talking to you again about our fourth quarter results, which will likely be in early February. Thank you, and have a nice day.

很好。謝謝你，Gen。感謝各位參加這次會議，也期待再次與各位交流我們第四季的業績，時間可能會在二月初。謝謝，祝各位有美好的一天。