芯源系統 (MPWR) 2023 Q3 法說會逐字稿

Welcome, everyone, to the MPS Third Quarter 2023 Earnings Webinar. My name is Genevieve Cunningham, and I will be the moderator for this webinar. Joining me today are Michael Hsing, CEO and Founder of MPS; and Bernie Blegen, EVP and CFO.

歡迎各位參加 MPS 2023 年第三季財報網路研討會。我是 Genevieve Cunningham，將擔任本次研討會的主持人。今天與我一同出席的有 MPS 執行長暨創辦人 Michael Hsing，以及執行副總裁兼財務長 Bernie Blegen。

In the course of today's webinar, we will make 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.

在今天的研討會過程中，我們將發表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出現重大差異。請參閱今日發布之財報新聞稿中所載的安全港聲明。

Risks, uncertainties and other factors that could cause actual results to differ are identified in the safe harbor statements contained in the Q3 earnings release and in our latest SEC filings, including our Form 10-K and our Form 10-Q, which are accessible through our website. MPS assumes no obligation to update the information provided on today's call.

可能導致實際結果不同的風險、不確定性及其他因素，已在第三季財報新聞稿中的安全港聲明以及我們最新的 SEC 申報文件（包括 Form 10-K 與 Form 10-Q）中加以說明，相關文件可透過我們的網站取得。MPS 不承擔更新今日電話會議所提供資訊的任何義務。

We will be discussing gross margin, operating expense, operating income, other income, income before income taxes, 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. Tables that outline the reconciliation between the non-GAAP financial measures to GAAP financial measures are included in our Q3 2023 earnings release, which we have furnished to the SEC and is currently available on our website.

我們將以 GAAP 與非 GAAP 兩種基礎討論毛利率、營業費用、營業利益、其他收益、所得稅前利益、淨利以及每股盈餘。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。概述非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間調節的表格，已包含於我們的 2023 年第三季財報新聞稿中；該新聞稿已提供給 SEC，並可於我們網站上取得。

I'd also like to remind you that today's conference call is being webcast live over the Internet and will be available for replay on our website for 1 year, along with the earnings release filed with the SEC earlier today.

另外提醒各位，今天的電話會議將透過網際網路進行即時網路直播，並將在我們網站上提供為期 1 年的重播；同時也會提供今日稍早向 SEC 申報的財報新聞稿。

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, Gen. MPS reported third quarter revenue of $474.9 million, 7.6% higher than second quarter of 2023 and 4.1% lower than third quarter of 2022. Compared with Q2 2023, sales in enterprise data and storage and computing improved sequentially, while automotive, industrial and communications revenue was lower.

謝謝你，Gen。MPS 公布第三季營收為 4.749 億美元，較 2023 年第二季成長 7.6%，較 2022 年第三季下降 4.1%。與 2023 年第二季相比，企業資料與儲存以及運算的銷售呈現季增，而車用、工業與通訊營收則較低。

Turning now to our third quarter 2023 revenue by market. In our enterprise data market, third quarter 2023 revenue of $98.9 million increased 106.2% from the second quarter of 2023 with sequential growth in both GPU and CPU program sales. Third quarter 2023 enterprise data revenue was up 31.4% year-over-year. Enterprise data revenue represented 20.8% of MPS' third quarter 2023 revenue compared with 15.2% in the third quarter of 2022.

接著看我們 2023 年第三季按市場別的營收。在企業資料市場方面，2023 年第三季營收為 9,890 萬美元，較 2023 年第二季成長 106.2%，GPU 與 CPU 專案銷售皆呈現季增。2023 年第三季企業資料營收年增 31.4%。企業資料營收占 MPS 2023 年第三季總營收的 20.8%，高於 2022 年第三季的 15.2%。

Storage and computing revenue of $129.5 million increased 3.9% from the second quarter of 2023. The sequential revenue improvement primarily reflected higher sales in commercial notebooks. Third quarter 2023 storage and computing revenue was up 14.7% year-over-year. Storage and computing revenue represented 27.3% of MPS' third quarter 2023 revenue compared with 22.8% in the third quarter of 2022.

儲存與運算營收為 1.295 億美元，較 2023 年第二季成長 3.9%。此一季增主要反映商用筆記型電腦的銷售增加。2023 年第三季儲存與運算營收年增 14.7%。儲存與運算營收占 MPS 2023 年第三季總營收的 27.3%，高於 2022 年第三季的 22.8%。

Third quarter consumer revenue of $62.4 million decreased 4.3% from the second quarter of 2023 as higher gaming and monitor sales were offset by declines in TV and home appliance revenue. Third quarter 2023 consumer revenue was down 30.1% year-over-year. Consumer revenue represented 13.1% of MPS' third quarter 2023 revenue compared with 18.0% in third quarter of 2022.

第三季消費性營收為 6,240 萬美元，較 2023 年第二季下降 4.3%，因遊戲與顯示器銷售增加被電視與家電營收下滑所抵銷。2023 年第三季消費性營收年減 30.1%。消費性營收占 MPS 2023 年第三季總營收的 13.1%，低於 2022 年第三季的 18.0%。

Third quarter 2023 communications revenue of $46.8 million was down 5.1% from the second quarter of 2023, primarily reflecting lower infrastructure sales. Third quarter 2023 communications revenue was down 35.3% year-over-year. Communications sales represented 9.9% of our total third quarter 2023 revenue compared with 14.6% in the third quarter of 2022.

2023 年第三季通訊營收為 4,680 萬美元，較 2023 年第二季下降 5.1%，主要反映基礎設施銷售較低。2023 年第三季通訊營收年減 35.3%。通訊銷售占我們 2023 年第三季總營收的 9.9%，低於 2022 年第三季的 14.6%。

Third quarter automotive revenue of $95.2 million decreased 8.8% from the second quarter of 2023 primarily due to lower ADAS and digital cockpit sales. Third quarter 2023 revenue was up 9.3% year-over-year. Automotive revenue represented 20.0% of MPS' third quarter 2023 revenue compared with 17.5% in the third quarter of 2022.

第三季車用營收為 9,520 萬美元，較 2023 年第二季下降 8.8%，主要因 ADAS 與數位座艙銷售較低。2023 年第三季營收年增 9.3%。車用營收占 MPS 2023 年第三季總營收的 20.0%，高於 2022 年第三季的 17.5%。

Third quarter 2023 industrial revenue of $42.1 million decreased 15.3% from the second quarter of 2023 due to lower sales in security and industrial meter applications. Third quarter 2023 revenue was down 28.2% year-over-year. Industrial revenue represented 8.9% of our total third quarter 2023 revenue compared with 11.9% in the third quarter of 2022.

2023 年第三季工業營收為 4,210 萬美元，較 2023 年第二季下降 15.3%，原因是安防與工業電表應用的銷售較低。2023 年第三季營收年減 28.2%。工業營收占我們 2023 年第三季總營收的 8.9%，低於 2022 年第三季的 11.9%。

I'd like to make some general comments about our business. In our previous earnings calls, we have noted customer ordering patterns were oscillating within the overall market. This environment persisted through Q3. We continue to see some orders getting delayed or amended by pull-in requests. This lack of short-term visibility continues to make forecasting beyond the next quarter difficult.

我想對我們的業務做一些概括性的評論。在先前的財報電話會議中，我們提到客戶下單模式在整體市場中呈現擺盪。這樣的環境在第三季仍持續。我們仍看到部分訂單被延後，或因提前拉貨（pull-in）要求而被修改。短期能見度不足，仍使得對下一季以外的預測變得困難。

However, as we said in our last call, our business fundamentals remain unchanged. Our design win pipeline and customer base have expanded tremendously, particularly amongst Tier 1 accounts. Additionally, we continue to innovate and have a strong design win pipeline position us well for future growth.

然而，正如我們在上次電話會議所說，我們的業務基本面並未改變。我們的設計導入（design win）管線與客戶基礎大幅擴展，特別是在一線（Tier 1）客戶方面。此外，我們持續創新，並擁有強勁的設計導入管線，使我們在未來成長上具備良好定位。

Moving now to a few comments on gross margin. GAAP gross margin was 55.5%, 60 basis points lower than the second quarter of 2023 and 320 basis points lower than the third quarter of 2022. Our GAAP operating income was approximately $135.6 million compared to $112.3 million reported in the second quarter of 2023.

接著談幾點關於毛利率的評論。GAAP 毛利率為 55.5%，較 2023 年第二季低 60 個基點，較 2022 年第三季低 320 個基點。我們的 GAAP 營業利益約為 1.356 億美元，相較於 2023 年第二季公布的 1.123 億美元。

Non-GAAP gross margin for the third quarter of 2023 was 55.7%, down 80 basis points from the gross margin reported for the second quarter of 2023. The quarter-over-quarter decrease in both GAAP and non-GAAP gross margin is attributed largely to an unfavorable product mix. Our non-GAAP operating income was $167.8 million compared to $153.1 million reported in the second quarter of 2023.

2023 年第三季非 GAAP 毛利率為 55.7%，較 2023 年第二季所報告的毛利率下降 80 個基點。GAAP 與非 GAAP 毛利率的季減，主要歸因於不利的產品組合。我們的非 GAAP 營業利益為 1.678 億美元，相較於 2023 年第二季公布的 1.531 億美元。

Let's review our operating expenses. Our GAAP operating expenses were $128 million in third quarter of 2023 compared with $135.4 million in the second quarter of 2023. Our non-GAAP operating -- our non-GAAP third quarter 2023 operating expenses were approximately $96.6 million, essentially flat with what we saw in each of the first 2 quarters of 2023.

我們來檢視營業費用。2023 年第三季 GAAP 營業費用為 1.28 億美元，相較於 2023 年第二季的 1.354 億美元。我們的非 GAAP 營業——我們 2023 年第三季非 GAAP 營業費用約為 9,660 萬美元，與 2023 年前兩季所見水準基本持平。

The differences between non-GAAP earning expenses and GAAP operating expenses for the quarters discussed here are primarily stock compensation expense and income or loss on an unfunded deferred compensation plan. For the third quarter of 2023, stock compensation expense, including approximately $1 million charged cost of goods sold, was $33.6 million compared with $38 million recorded in the second quarter of 2023.

此處所討論各季的非 GAAP 獲利費用與 GAAP 營業費用之差異，主要為股票酬勞費用，以及未提撥資金之遞延補償計畫的收益或損失。就 2023 年第三季而言，股票酬勞費用（包含約 100 萬美元計入銷貨成本）為 3,360 萬美元，相較於 2023 年第二季認列的 3,800 萬美元。

Switching to bottom line. Third quarter 2023 GAAP net income was $121.2 million or $2.48 per fully diluted share compared with $99.5 million or $2.04 per share in the second quarter of 2023. Third quarter 2023 non-GAAP net income was $150.3 million or $3.08 per fully diluted share compared with $137.5 million or $2.82 per fully diluted share in the second quarter of 2023. Fully diluted shares outstanding at the end of Q3 2023 were 48.8 million.

接著看最終獲利。2023 年第三季 GAAP 淨利為 1.212 億美元，或完全稀釋後每股 2.48 美元；相較於 2023 年第二季的 9,950 萬美元，或每股 2.04 美元。2023 年第三季非 GAAP 淨利為 1.503 億美元，或完全稀釋後每股 3.08 美元；相較於 2023 年第二季的 1.375 億美元，或完全稀釋後每股 2.82 美元。2023 年第三季末完全稀釋後流通在外股數為 4,880 萬股。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $1.04 billion at the end of third quarter 2023 compared with $941.1 million at the end of the second quarter of 2023. For the quarter, MPS generated operating cash flow of approximately $175.9 million compared with Q2 2023 operating cash flow of $90.2 million. Accounts receivable ended the quarter of 2023 at $185.8 million, representing 36 days of sales outstanding, which was 1 day higher than the 35 days reported at the end of the second quarter of 2023.

現在我們來看資產負債表。截至 2023 年第三季末，現金、約當現金及投資為 10.4 億美元，相較於 2023 年第二季末的 9.411 億美元。本季 MPS 產生的營運現金流約為 1.759 億美元，相較於 2023 年第二季營運現金流的 9,020 萬美元。2023 年第三季末應收帳款為 1.858 億美元，代表應收帳款週轉天數（DSO）為 36 天，較 2023 年第二季末所報告的 35 天增加 1 天。

Our internal inventories at the end of the third quarter of 2023 were $397.3 million, down from $427.4 million at the end of the second quarter of 2023. Days of inventory of 171 days came in at the end of the third quarter of 2023 were 30 days lower than at the end of the second quarter of 2023. Comparing current inventory levels with following quarter's projected revenue, you can see days of inventory decreased to 180 days at the end of the third quarter of 2023 from 184 days at the end of the second quarter of 2023.

我們在2023年第三季末的內部庫存為3.973億美元，較2023年第二季末的4.274億美元下降。2023年第三季末的庫存天數為171天，較2023年第二季末降低30天。將目前庫存水準與下一季的預估營收相比，可以看到2023年第三季末的庫存天數由2023年第二季末的184天下降至180天。

I would now like to turn to our outlook for the fourth quarter of 2023. We are forecasting Q4 revenue in the range of $442 million to $462 million; GAAP gross margin in the range of 55.2% to 55.8%; non-GAAP gross margin in the range of 55.4% to 56%; total stock-based compensation expense in the range of $32.2 million to $34.2 million, including approximately $1 million that would be charged to cost of goods sold; GAAP operating expenses between $127.1 million to $131.1 million; non-GAAP operating expenses in the range of $95.9 million to $97.9 million. The estimate -- this estimate excludes stock compensation expense but includes litigation expense; interest and other income in the range from $4.1 million to $4.5 million before foreign exchange gains or losses; fully diluted shares in the range of 48.7 million to 49.1 million shares.

接下來我想談談我們對2023年第四季的展望。我們預估第四季營收介於4.42億至4.62億美元；GAAP毛利率介於55.2%至55.8%；非GAAP毛利率介於55.4%至56%；股票基礎薪酬費用總額介於3,220萬至3,420萬美元，其中約100萬美元將計入銷貨成本；GAAP營業費用介於1.271億至1.311億美元；非GAAP營業費用介於9,590萬至9,790萬美元。此估計—該估計不含股票薪酬費用，但包含訴訟費用；利息及其他收入介於410萬至450萬美元（未計入外匯損益之前）；完全稀釋後股數介於4,870萬至4,910萬股。

We are also pleased to announce that our Board of Directors has approved a share buyback program for up to $640 million over the next 3 years with the goal of offsetting future dilution. In conclusion, while we expect visibility to remain limited in the short term, which was the same as last quarter, we continue to execute on the long-term strategy.

我們也很高興宣布，董事會已核准一項股票回購計畫，未來3年內最多回購6.4億美元，目標是抵銷未來的稀釋效應。總結而言，雖然我們預期短期能見度仍將有限（與上季相同），但我們將持續執行長期策略。

I will now open the webinar up for questions.

現在我將開放線上研討會進行提問。

Thank you, Bernie. Analysts, I would now like to begin our Q&A session. (Operator Instructions) Our first question is from Quinn Bolton of Needham.

謝謝你，Bernie。各位分析師，現在我們開始問答環節。（接線員指示）我們的第一個問題來自Needham的Quinn Bolton。

Michael and Bernie, congratulations on the results and the outlook in a tough market. I guess, Bernie, Michael, the enterprise data business, very strong quarter-on-quarter. Wondering if you could just give us some thoughts as you look into next year, how you see the GPU business. And specifically, do you see sort of expansion of that customer list driving strength in GPUs?

Michael和Bernie，恭喜你們在艱難的市場中交出這樣的成績與展望。我想問一下，Bernie、Michael，企業資料業務季對季非常強勁。想請你們談談展望明年時，如何看待GPU業務。具體來說，你們是否看到客戶名單的擴大正在帶動GPU的強勢？

And then a question on CPU. You said CPU was up in the third quarter. Wondering if you're finally starting to see some strength in the Sapphire Rapids and Genoa side of that business? And then I have a follow-up question.

另外一個關於CPU的問題。你們提到第三季CPU成長。想請問你們是否終於開始在Sapphire Rapids與Genoa相關業務上看到一些走強？我還有一個追問。

At this time, okay, as Bernie said earlier, okay, these markets are very much oscillating and that came in the net, you see it we done from the last -- from this quarter. So from last year, year-to-year, we're still down. I mean -- but AI and AI, okay, these are power modules and we -- as we're ramping up as a result of -- can maintain gross over in these years and still slightly -- a slight growth from the last years, okay? That's mainly due to AI.

目前，好的，正如Bernie先前所說，好的，這些市場確實在大幅波動，而這也反映在淨額上，你可以看到我們從上一個——從本季相較於上一季的變化。所以從去年到今年、年對年來看，我們仍然是下滑的。我的意思是——但AI與AI，好的，這些是電源模組，而我們——隨著我們因為——在拉升產能的結果，我們在這些年度仍能維持毛利，並且相較去年仍有些微——些微成長，好的？這主要是因為AI。

And also in the prior quarters in the autos that we see as a very lumpy business, okay, lumpy for ADAS ramping up. But all of these, okay, we believe that will happen in ramping up in the next year, not only from ADAS. And also, as you mentioned about on the general CPU and in the server side.

另外，在前幾季的汽車業務中，我們看到這是一個非常不均勻（lumpy）的業務，好的，因為ADAS拉升而呈現不均勻。但所有這些，好的，我們相信明年會開始拉升，不僅來自ADAS。也包括你提到的一般CPU以及伺服器端。

And I might as well as mentioned all the other ones. We still have a lot of greenfield products haven't really ramped up yet. And many, many projects gets delayed in this year pushing to next year. And we don't want to give a very clear forecast that we still don't know yet. But sometime in the next years, we believe that they will start ramping up and all these greenfield products. So that's kind of my summary for the near-term business.

我也順便提一下其他部分。我們仍有許多綠地（greenfield）產品尚未真正開始放量。並且今年有非常非常多專案延後，推遲到明年。我們不想給出非常明確的預測，因為我們現在仍不確定。但在接下來的幾年某個時間點，我們相信它們會開始拉升，包含所有這些綠地產品。所以這就是我對短期業務的總結。

I guess a follow-up question. Bernie, I think in the script, you mentioned some pushouts, some pull-ins or expedites. I think the pull-ins or expedites maybe newer given just the overall challenging industry. Were the pull-ins specific to certain customers or end markets? Or are you starting to see pull-in requests across multiple end markets?

我想追問一下。Bernie，我記得在講稿中你提到一些延後（pushouts）、一些提前拉貨（pull-ins）或加急（expedites）。考量整體產業環境具挑戰性，提前拉貨或加急似乎比較新。這些提前拉貨是特定客戶或終端市場的需求嗎？還是你們開始在多個終端市場都看到提前拉貨的要求？

Yes. Quinn, I think what we're experiencing here is a unique business cycle and that right now, our end customers are unwilling to commit beyond a fairly narrow window of -- expecting lead times within under 10 weeks for delivery. So that makes, as we said earlier in the comments, the predictability really hard to call right now.

是的。Quinn，我認為我們正在經歷的是一個獨特的景氣循環；目前我們的終端客戶不願意在相當狹窄的時間窗之外做出承諾——他們期望交期在10週以內完成交付。因此，正如我們先前評論所說，現在要做出可預測性判斷真的很困難。

But I think, as Michael just said, that when we look at our design win pipeline, it's strong. And we're confident that we're in a good position to capture share and growth as the market recovers. But right now, we're still in a level of unpredictability.

但我認為，正如Michael剛才所說，當我們看我們的設計導入（design win）管線時，它很強勁。我們有信心在市場復甦時，能處於良好位置來取得市占與成長。但就目前而言，我們仍處於一定程度的不可預測性之中。

He's talking about which the segments and...

他在問是哪些區隔以及……

Oh, I'm sorry. Which segments?

喔，不好意思。哪些區隔？

Yes, which segments, Okay. And we look at it kind of a rough surveys. Like it's actually across the entire product segment, including consumers. Some of the products, okay, they need and put it in very quick. As Bernie said, the lead time is very, very short. And we don't have those products that can -- it's pretty much across the board. And other than AI, we really planned ahead, and we really planned ahead from the beginning of the beginning of the year. And we can anticipate all the ramp-up in -- even for the next few quarters.

是的，哪些區隔，好的。我們用一個大致的調查來看。其實是橫跨整個產品區隔，包括消費性。某些產品，好的，他們需要而且要很快就下單。正如Bernie所說，交期非常、非常短。我們沒有那種可以——基本上是全面性的。除了AI之外，我們確實有提前規劃，而且從年初一開始就提前規劃。我們可以預期所有的拉升——甚至是接下來幾季的拉升。

Our next question is from Tore Svanberg of Stifel.

我們的下一個問題來自Stifel的Tore Svanberg。

Congratulations on that $1 billion cash balance. First question is on the Q4 outlook. I know you typically don't guide by segment, but can you just talk about directionally where you expect each segment to trend in Q4?

恭喜你們現金餘額達到10億美元。第一個問題是關於第四季展望。我知道你們通常不按部門提供指引，但能否就方向性談談你們預期第四季各部門的趨勢？

Yes. Q4 is still down, Q4 is still down quite a bit from Q3, okay? And pretty much everything except -- okay, maybe not auto, okay? I mean auto probably sideways are maybe slightly up, okay, is slightly up and also the AI power still continuously to ramp up.

是的。第四季仍然下滑，第四季相較第三季仍會下滑不少，好的？幾乎所有項目都會下滑，除了——好的，也許汽車不會，好的？我的意思是汽車可能持平或略為上升，好的，是略為上升；另外AI電源也會持續拉升。

Yes. I think that when you look at the broader market, we're experiencing a lot of the weakness in demand that many of our peer companies are. And what makes us differentiated is the AI boost we're experiencing.

是的。我認為當你看更廣泛的市場時，我們正經歷與許多同業公司相同的需求疲弱。而讓我們有所差異的是，我們正在經歷AI帶來的提振。

And pretty much AI and auto. And everything else is pretty much muted, yes.

基本上就是AI和汽車。其他的幾乎都相當平淡，是的。

Very good. And as my follow-up and maybe related to the previous question on enterprise data and AI, just wondering if you have any visibility on the sustainable growth here. There's obviously one big partner that's ramping right now, but it looks like there's some other processor companies that are going to be catching up next year. So if you could give us any color on, especially enterprise data segment for 2024, that would be really helpful.

很好。我的追問，可能也與前一題關於企業資料與AI相關。我想了解你們對這裡可持續成長的能見度。顯然目前有一個大型合作夥伴正在拉升，但看起來明年還有一些其他處理器公司會追上來。所以如果你們能提供一些資訊，特別是對2024年企業資料部門的看法，將非常有幫助。

All I can tell you, overall, how the MPS strategies. Like the MPS strategy always take the -- get the best -- which provides the best performance. When the volume gets higher and requirements lower, okay, we don't chase those low-end -- the low-end segment.

我能告訴你的整體是，關於MPS的策略。MPS的策略一向是採用——取得最佳——也就是提供最佳效能的方案。當出貨量變大、需求門檻降低時，好的，我們不會去追逐那些低階——低階市場區隔。

I see MPS is still in the forefront in terms of best efficiencies and the lowest generating heat in, okay, smallest areas. We are still the leading -- would be next year and the year after, all these products are eyeing in development with our customers and with the leading-edge -- leading providers in AI GPUs specifically. And that's a huge market, and we don't want to take all of them.

我認為MPS在最佳效率、最低發熱、好的、最小面積等方面仍站在最前沿。我們仍將是領先者——明年以及後年，所有這些產品都在與客戶、以及特別是在AI GPU的先進——領先供應商共同開發中。那是一個巨大的市場，而我們不想把它們全部都拿下。

And to your other part of the question is the general market, right? Okay. In general market, in other segments, we CPUs. And you'll remember in the VR13, we didn't have a lot of design wins, okay? But we had -- we put up a lot of inventories and the winter VR13.5, okay, it became a serendipity. And again, we have a few project design win and other supply to ship, but we ship a lot. So that's where you see the server data center growth. That's because of that.

至於你問題的另一部分，是一般市場，對吧？好的。在一般市場、其他區隔方面，我們有CPU。你會記得在VR13時，我們沒有很多設計導入，好的？但我們——我們建立了大量庫存，而到了冬季的VR13.5，好的，這變成一個意外之喜。再者，我們也有幾個專案的設計導入，以及其他供應可以出貨，但我們出貨很多。所以你看到伺服器資料中心的成長，就是因為這個。

And for next years, we were told to get ready to have those projects ramping up in a rapid supply, right, okay, let's call it that. And so when these markets are already ramping up, MPS are there.

而在接下來幾年，我們被告知要準備好讓那些專案以快速供應的方式加速放量，對吧，好吧，就先這麼稱呼它。因此當這些市場已經在加速放量時，MPS 也在那裡。

I think, Tore, you hit on a couple of very good points that as far as the AI GPU opportunity, we're very well positioned both for the near term, in 2024, but more importantly, longer term. And as Michael just emphasized, there is a differentiated market there, and we want to stay at the high end of that market. So we've always been aware that there would be competitors entering this space, and that's how we're differentiating ourself.

我認為，Tore，你點出了幾個非常好的重點：就 AI GPU 的機會而言，我們在短期（2024 年）以及更重要的長期都處於非常有利的位置。正如 Michael 剛才強調的，那裡有一個差異化的市場，而我們希望維持在該市場的高端。因此我們一直都知道會有競爭者進入這個領域，而這正是我們用來做出差異化的方式。

And then as far as the CPU and GPU markets, what we're preparing to do is to manage the uptick in demand that we're anticipating by building that inventory during the next couple of quarters.

至於 CPU 與 GPU 市場，我們正在準備做的是：透過在接下來幾個季度建立庫存，來管理我們預期將出現的需求上升。

Oh, yes. That's what I forgot. Well, I tried to make a point. I want to -- and MPS doesn't want to be known as AI power company, okay? We want to focus on the diversified growth. And we do have a lot of greenfield products still haven't realized yet. These are across the segment. And also in the consumer side, in the last years, okay, because last couple of years because the shortages we kind of neglect it.

喔，是的。那是我忘了的。嗯，我試著強調一點。我想要——而且 MPS 也不想被稱為 AI 電源公司，好嗎？我們想聚焦在多元化成長。我們確實還有很多綠地（greenfield）產品尚未實現。這些橫跨各個事業部門。另外在消費端，過去幾年——好吧，過去這一兩年因為缺貨，我們某種程度上忽略了它。

And that will -- in the last half years, we developed a low-cost product, and we introduced the market where you'll see the growth. That's only on the -- because of very short term -- short design cycle, you will see revenue from -- for next year. And all the other product like industrials, automotive, in tracking inverters, in chargers and also ADAS, these were ramping up. And so we want to achieve very diversified growth, not only on the AI side.

而且在過去半年，我們開發了一款低成本產品，並已導入市場，你們會看到成長。這只是在——因為非常短期——設計週期很短，你們會在明年看到營收貢獻。至於其他產品，例如工業、車用、追日逆變器（tracking inverters）、充電器以及 ADAS，這些都在放量中。因此我們希望達成非常多元化的成長，而不只是 AI 這一端。

Great color. Good job with the buyback.

很好的補充說明。回購做得不錯。

Our next question is from Ross Seymore of Deutsche Bank.

下一個問題來自德意志銀行（Deutsche Bank）的 Ross Seymore。

Guys, can you hear me?

各位，你們聽得到我嗎？

Yes.

聽得到。

So I guess the question I have is, I don't know cyclicality or seasonality is carrying the day. But the last couple of quarters, you've talked about weakness. You're not unique in that. But the fourth quarter, you seem to be guiding pretty much back to a seasonal drop. If I look into the first quarter, is that something that you expect to continue? Or is visibility just too limited to really comment on that quite yet.

所以我想我有個問題：我不確定現在主導的是景氣循環性還是季節性。但過去幾個季度，你們一直在談疲弱，你們也不是唯一這麼說的。不過在第四季，你們看起來幾乎是在指引回到一個季節性的下滑。如果我看第一季，這是你們預期會延續的狀況嗎？還是目前能見度太有限，還不太能評論？

Yes. It's -- well, the numbers kind of reflected seasonal, but the reality is it just happened that way, okay, which we can't call it seasonal. This fast-changing market, I mean, it's very difficult for us to forecast. That's difficult, okay? Unfortunately, we have a lot of capacities. And -- but these capacity were still the lead time still shorter than our production cycle, okay? And we have to get ready just that, okay?

是的。這——嗯，數字看起來有點反映季節性，但實際上只是剛好如此，好嗎？我們不能稱它為季節性。這個快速變動的市場，我是說，對我們來說很難預測，這很困難，好嗎？不幸的是，我們有很多產能。而且——但這些產能的交期仍然比我們的生產週期更短，好嗎？我們必須為此做好準備，就是這樣，好嗎？

Ross, you bring up a really good point is that if we look at the outlook for Q4, a portion of that is how competitive we were at going after the notebook market. And so the Q4, we're experiencing a little bit of a decline as those are seasonal sales.

Ross，你提出了一個很好的觀點：如果我們看第四季的展望，其中一部分來自於我們在爭取筆電市場時的競爭力。因此在第四季，隨著那些季節性銷售，我們會經歷一些下滑。

When we look at Q1, Michael said it best, is there isn't a lot of visibility. But as we look at this cycle, we believe that next year is really back half-weighted. And so I would probably indicate that we'll have a more conservative profile as we look at the first half of 2024.

當我們看第一季時，Michael 說得最貼切：目前沒有太多能見度。但就這個循環來看，我們相信明年會是下半年權重較高。因此我可能會表示，在看 2024 年上半年時，我們會採取較保守的輪廓。

Yes. Also, I didn't -- I forgot to mention about it. And we may -- we talked about beginning of the year, we'll be aggressive on price and especially in -- within the course of board. And then we have a new product in the consumer segment come out and -- or already came out.

是的。另外，我剛才——我忘了提到。我們可能——我們在年初談過，我們會在價格上更積極，尤其是在——整個產品線範圍內。然後我們在消費性產品線也推出了一個新產品——或者已經推出了。

And also in a notebook area, we pretty much have a large market share in the commercial side. In the beginning of the year, we were very starting to become very aggressive on the price. And now, fourth quarter, you see it in our notebook side start to gain more shares in the consumer side.

另外在筆電領域，我們在商用端基本上有很大的市占。年初時，我們開始在價格上變得非常積極。而現在到第四季，你們可以看到我們在筆電端開始在消費端取得更多市占。

Got it. And my one follow-up, I want to just pivot over to the gross margin side of things. You mentioned, Bernie, in your script that you're at the low end of your guidance because of mix. I was a little surprised that enterprise data more than doubled sequentially, but yet you pointed to mix. Can you just talk a little bit about what's going on? What mix were you referring to? Because I think, whether correctly or incorrectly, at least I assume that enterprise data would be an accretive gross margin category.

了解。那我再追問一個問題，我想把焦點轉到毛利率。Bernie，你在講稿裡提到，因為產品組合（mix）的關係，你們落在指引區間的低端。我有點意外的是，企業資料（enterprise data）營收季增超過一倍，但你們仍指向 mix。你能談談發生了什麼嗎？你指的是哪一種 mix？因為我想——不論對或不對——我至少假設企業資料應該是毛利率增厚（accretive）的類別。

Sure. Well, consumer notebook, margins are very low, okay? But it's an easier money to be made, okay?

當然。嗯，消費性筆電的毛利率非常低，好嗎？但那是比較容易賺到的錢，好嗎？

Yes. Michael is exactly right, is that we have been aggressive on pricing across the board. And while that isn't called out specifically as a contributing factor to the lower gross margin, it is reflected in the overall mix, notwithstanding the impact of the GPU and AI business.

是的。Michael 說得完全正確：我們一直在全產品線採取積極的定價。雖然這沒有被特別點名為毛利率較低的貢獻因素，但它反映在整體產品組合之中，且不論 GPU 與 AI 業務的影響如何。

And has that pricing dynamic, is that starting to kind of normalize from here? Or is that an incremental headwind that we should consider going forward?

那這種定價動態，現在是否開始趨於正常化？還是這會是我們往後需要考量的額外逆風？

I believe that as the market begins to stabilize, that will return to a more normal profile as far as pricing. Again, a very specific point to make here is that most of our customers are attractive, and we have secured design wins because of our innovation as opposed to pricing alone. So I believe that as the market stabilizes sometime in 2024 that we'll probably return to a more normal pricing environment as well.

我相信，隨著市場開始穩定，定價將回到較正常的狀態。再次強調一個非常具體的重點：我們的大多數客戶都很有吸引力，而我們拿下設計導入（design wins）是因為我們的創新，而不只是靠價格。因此我相信，當市場在 2024 年某個時間點穩定下來後，我們也可能會回到較正常的定價環境。

Yes. You said product mix, right? But also, there's other capacities, okay, and capacity utilizations in China and also add a lot of capacity cost, okay, for us. So it's a mix of all of them, not only the product mix.

是的。你說的是產品組合，對吧？但另外，還有其他產能因素，好嗎？以及中國的產能利用率，也會增加很多產能成本，好嗎？所以這是多種因素的混合，不只是產品組合。

Our next question is from Rick Schafer of Oppenheimer.

下一個問題來自 Oppenheimer 的 Rick Schafer。

Let me add my congratulations. If I could follow up, just one more question on enterprise data. You mentioned your greenfield product lineup for next year, I think, a couple of times on call. And one of those really stands out is the silicon carbide power isolation module you guys are working on. And I know that's for a couple of different end markets.

讓我也補上我的恭喜。如果我可以追問一下，關於企業資料再問一題。你們在電話會議中提到明年的綠地產品線好幾次。其中一個特別突出的，是你們正在開發的碳化矽（silicon carbide）電源隔離模組。我知道那是用在幾個不同的終端市場。

I was hoping you could give some color around the sort of engagements you're seeing right now with the CSPs, so in data center, maybe a sense of timing of when those initial revenues would start showing up in the model. And my bigger question is really, do you view sort of power isolation -- the power solution module as a TAM expander for your existing enterprise data franchise?

我希望你能補充一些目前你們與 CSP 的互動情況（在資料中心），也許談談初期營收大概何時會開始反映在模型中。以及我更大的問題是：你們是否把電源隔離——電源解決方案模組視為擴大你們既有企業資料業務可服務市場（TAM）的方式？

Let me answer your first for silicon cover. Thanks for reminding me this. I almost forgot. Yes, we released the product. And first revenue, we'll see sometime in the next years, okay, would be in the solar inverters. And the green energies has a lot of demand, the products that we designed for those -- that market segment and will start to ramp and also in automotive. And these are not specifically for tracking inverter for these drivers, okay? We do power management.

我先回答你第一個關於碳化矽的問題。謝謝你提醒我，我差點忘了。是的，我們已經發布了這個產品。第一筆營收，我們會在接下來幾年中的某個時間看到，好嗎？會先在太陽能逆變器上。綠能有很大的需求，我們為那個——市場區隔所設計的產品將開始放量，也會在車用端放量。而且這些並不是專門用在追日逆變器的那些驅動器上，好嗎？我們做的是電源管理。

And we will see those products designed and ramping up much later. I mean these are clearly in the dip is -- there's a void in the market. No other company produces that kind of a product, and it became very unique. And so I'm -- I have very good confidence in the second half of next year, the year after, okay? We will see a lot of new revenue coming from that segment.

而我們會在更晚一些時候看到那些產品被設計導入並開始放量。我的意思是，這裡很明顯——市場上有一個空缺，沒有其他公司生產那種產品，它變得非常獨特。因此我——我對明年下半年、再下一年，好嗎？非常有信心。我們會看到那個區隔帶來很多新的營收。

And what's the second questions -- second part of the question.

那第二個問題——問題的第二部分是什麼？

Yes. Within CFP, the full rack power that I know you guys have discussed. Is there any color you could give around how you view that? Is that sort of a TAM expander for your enterprise data segment? I'm sorry, the hyperscalers?

是的。在 CFP 之內，我知道你們討論過整機櫃（full rack）供電。你能否補充一些你們如何看待它？它是否算是擴大你們企業資料部門 TAM 的方式？抱歉，我指的是超大規模雲端業者（hyperscalers）？

Oh, the hyperscaler. Hyperscaler is now -- you guys know better than we do. We just only provides the power. So I can mean that -- for the CPU side, GPU side, as we said earlier, okay, VR14, we have -- we expect to have bigger shares. And if you refer to silicon carbide in that, that we will develop those products. Those are power supplies. And again, these are plug-and-play power supply and these are large modules. And that will ramping up -- I don't have a time frame, okay? Probably is towards the very end of the next year, the 2025.

喔，超大規模雲端業者。超大規模雲端業者現在——你們比我們更了解。我們只是提供電源。所以我的意思是——在 CPU 端、GPU 端，如同我們先前所說，好嗎？VR14，我們預期會有更大的份額。若你提到其中的碳化矽，我們也會開發那些產品。那些是電源供應器。同樣地，這些是即插即用（plug-and-play）的電源供應器，而且是大型模組。那將會放量——我沒有時間表，好嗎？可能會在明年非常接近年底，或是 2025 年。

Okay. And I guess, maybe if I could try one more slide that Ross' question on gross margin. I don't know, Bernie, if you could give us any kind of rule of thumb. And I understand it's a mix issue and I hear everything you're saying about the current pricing environment. But as we look the thing sort of normalizing, say, in the second half next year, say you get back to your $2 billion or better kind of run rate, I mean, should we be thinking gross margin at that level should be back sort of tilting toward the high 50s again at that sort of a run rate?

好的。我想也許我可以再追問一張投影片，關於 Ross 對毛利率的問題。我不知道，Bernie，你能不能給我們一個大概的經驗法則。我理解這是組合的問題，也聽到你對目前定價環境所說的一切。但當我們看這件事在明年下半年某種程度上回歸正常，比如說你回到每季 20 億美元或更高的那種 run rate，我是說，我們是否應該認為在那樣的 run rate 下，毛利率應該會回到、偏向高 50% 的水準？

Yes. I would not be too quick to jump to the high 50s in the near term here. I think that we -- what we've said previously is that we expect for the next few quarters to stay within our model, targeting about 56% plus or minus 50 basis points. And then as we look at the second half of next year, as things stabilize and we get a better mix that we should see return to have an incremental improvement.

是的。我不會在短期內太快就跳到高 50% 的判斷。我想我們——我們先前說過的是，我們預期接下來幾個季度會維持在我們的模型範圍內，目標大約是 56%，上下 50 個基點。然後當我們看明年下半年，隨著情況穩定、組合變得更好，我們應該會看到回升並有一些邊際改善。

Yes. I still see some, okay, and I didn't look at the number in details so I am not giving them, we expand a lot of capacities. And from a -- these are strategically not mistake. And we do see a lot of growth from -- in the next couple of years. And so I believe this capacity, the utilization had taken into effect on the gross margins. I don't know what -- how many -- what's the percentage? I don't know. Maybe Bernie can answer you later, okay?

是的。我仍然看到一些——好吧，我沒有仔細看數字，所以我不提供具體數字——我們擴了很多產能。從——這些在策略上不是錯誤。而且我們確實看到未來幾年會有很多成長。所以我相信這些產能的利用率已經對毛利率產生影響。我不知道——有多少——比例是多少？我不知道。也許 Bernie 之後可以再回答你，好嗎？

Yes. On the capacity, and I'll take this topic on because it's an important one as we look ahead, is we talked about a year ago as far as developing new relationships with fab partners, particularly in Taiwan and Singapore as we not only expand capacity in advance of a future upswing in demand but also to diversify by geography. And so those investments are adding to our overall cost profile more in the R&D side than in gross margin specifically today, but that capacity will become available here just as we see the second half of next year starting to...

是的。關於產能，我來談這個主題，因為展望未來這很重要。我們大約一年前談過，為了與晶圓代工夥伴建立新的合作關係，特別是在台灣和新加坡；我們不僅是在未來需求回升之前提前擴充產能，也是在地理上做分散。因此，這些投資目前更多是增加我們整體成本結構中的研發端，而不是今天毛利率本身；但這些產能將在我們看到明年下半年開始……時可用。

Well, these are for future. China is on...

嗯，這些是為了未來。中國在……

Yes.

是的。

But the capacity that we expanded from a year ago and it's not utilized, yes?

但我們從一年前擴的產能，還沒有被利用，對嗎？

Yes, not yet.

是的，還沒有。

Okay. Or the test equipment. Okay.

好的。或者是測試設備。好的。

Our next question comes from William Stein of Truist.

我們的下一個問題來自 Truist 的 William Stein。

I'm hoping -- Michael, you talked about traction in design wins that will turn into revenue over the next several quarters and years. It sounds like you've been very busy with these, as you always are. And often, that means you can see sort of what's coming a little earlier in terms of where the revenue might shift in terms of the end markets and products and that sort of thing.

我希望——Michael，你談到在設計導入（design wins）方面的進展，這些會在未來幾個季度與幾年內轉為營收。聽起來你們在這方面非常忙碌，一如既往。而通常這代表你們能更早看到一些趨勢，例如營收可能在終端市場與產品等方面如何轉移。

So when you think about the bigger design wins, either the bigger volume runners or the bigger ASP drivers, is there a shift either in end markets or in mix, let's say, for modules or motion control or things like that? Any other shifts in the ready mix that we should expect because of these design wins that have yet to ramp?

所以當你想到較大的設計導入——不論是出貨量較大的量產案，或是帶動較高 ASP 的案子——在終端市場或產品組合上是否有任何轉變？例如模組、運動控制（motion control）之類？因為這些尚未放量的設計導入，是否會讓我們預期到任何其他組合上的變化？

Well, thanks for reminding me the motion. I forgot about that. Okay, yes, we do have a lot of design in the motion side, too. And we look at it. And the beauty is, I can't call it specifically, really across the board. And that means we have our biggest customers, like 4%, 5%, maybe slightly higher out of these years. And all the other customers, there are a few thousand customers and a few thousand products around, I don't know how many market segments, okay? And they are very healthy in for -- in terms of design win activities, okay?

嗯，謝謝你提醒我 motion。我忘了那個。好的，是的，我們在 motion 端也有很多設計導入。我們也在看。好處是，我沒辦法很具體地點名，因為真的幾乎是全面性的。這也意味著，我們最大的客戶占比大概 4%、5%，可能略高一些；而其他客戶有幾千家，產品也有幾千種，涵蓋我不知道多少個市場區隔。就設計導入活動而言，它們都非常健康。

And so all of them will turn into revenues. And I can give you some bigger segments, okay, and not many people talking about it. And is not going, what is it, a USB-C, USB-PD. And I believe that this will be a huge revenue, okay, and growth. And MPS has a lot more content in -- versus a USB-PD versus the USB -- what's that, USB...

因此，這些都會轉成營收。我可以給你一些比較大的區塊，好嗎？而且沒有太多人在談。那就是 USB-C、USB-PD。我相信這會帶來很大的營收與成長。相較於 USB——那個叫什麼，USB……MPS 在 USB-PD/USB-C 上的內容價值更高。

Earlier versions.

較早的版本。

Yes, earlier versions like B -- type B, okay, now it's type C. And some of them in auto will be cannibalized in -- for USB type B product, okay? And -- but C is a much higher content, and that's in auto. And in the consumer side, it's totally new. And USB type -- B type is a very low -- is like a consumer side. And now they're converting to USB-C, and that will be a lot broader applications. And it's based on -- because all unified approach, and especially European countries and drive that standards and I think to migrate to everywhere. They have a clear mandate went to switch it.

是的，像 B——Type B 這種較早的版本，現在是 Type C。在汽車端，有些會被 USB Type B 產品所替代（被侵蝕），好嗎？——但 Type C 的內容價值高得多，而且是在汽車端。在消費端，這是全新的。USB Type——B Type 在消費端的內容價值很低。而現在它們正在轉向 USB-C，應用會更廣。這是基於——因為採用統一的方式，尤其是歐洲國家推動這個標準，我認為會遷移到各地。他們有明確的強制要求要切換。

And I believe even Apple on, okay, for the next version of a phone will be USB-C. And we see MPS has a lot of opportunities, a lot of growth. So other than that, okay, battery management and that will ramp in 2014, okay? And again in a lot of different applications from...

而且我相信連 Apple 也會在——好吧——下一代手機採用 USB-C。我們看到 MPS 有很多機會、很多成長。除此之外，好嗎，還有電池管理，並且會在 2014 年放量，好嗎？而且同樣是在很多不同的應用中，從……

2024.

2024。

2024. And these are from power tool to garden tools and -- from all kind of other things, okay? I mean those are already designed in products, okay, we're ramping in the next 12 to 24 months or less than 6 to 24 months, I guess, yes.

2024。這些應用從電動工具到園藝工具，以及——各式各樣其他東西，好嗎？我的意思是，這些都已經是設計導入的產品，好嗎？我們會在接下來 12 到 24 個月內放量，或是少於 6 到 24 個月，我想，是的。

And in addition, just to repeat sort of the opportunities that we talked about in both green energy, clean energy and as well as in DDR5. So there's a large number of products that are expected to ramp here very quickly for us.

另外，再重申一下我們談過的機會，包括綠能、潔淨能源，以及 DDR5。因此，有大量產品預期會在這裡很快為我們放量。

Great. If I can ask one follow-up. The inventory decline sequentially surprised us a bit. Perhaps this was always your plan. But if it wasn't, can you describe what happened here? Perhaps customer came in with more demand for something or maybe you decided mid-quarter to reduce production. What -- maybe just set me straight on this issue.

很好。我可以再追問一個問題嗎？庫存的季比下降讓我們有點意外。也許這一直都是你們的計畫。但如果不是，你能描述一下這裡發生了什麼嗎？也許客戶對某些產品的需求增加，或是你們在季度中途決定減產。到底——請幫我釐清這個問題。

We reduced the overall inventories that came in starting at the beginning of the year. That's probably reflects that. And yes, and it doesn't mean we will keep that low, okay? We will boost it up more.

我們從年初開始就降低了整體進貨的庫存。這大概反映了那件事。是的，而且這不代表我們會一直維持那麼低，好嗎？我們會再把它提高。

Yes. What we've done is we've said that we have a range of inventory that we want to operate within -- between 180 to 200 days. And what you've seen is that we did reduce wafer starts about 9 months or 3 quarters ago, and that's now being reflected in our balance sheet today. But as we anticipate the demand for all of the opportunities that we see possible for 2024, we are beginning to ramp inventory. And as Michael said, we have the capacity available to take advantage of that.

是的。我們做的是，我們設定了一個希望運作的庫存區間——大約在 180 到 200 天之間。你看到的是，我們大約在 9 個月前、也就是 3 個季度前，降低了晶圓投片（wafer starts），而這現在反映在我們今天的資產負債表上。但當我們預期 2024 年所有我們看到的可能機會所帶來的需求時，我們正開始拉升庫存。而如 Michael 所說，我們有可用的產能來把握這些機會。

Our next question is from Matt Ramsay of Cowen.

我們的下一個問題來自 Cowen 的 Matt Ramsay。

Michael, I wanted to dig into the automotive market a bit and understand the drivers of the business over the next several quarters. I think you guys have some very exciting new content with one of the leading EV OEMs in the States and obviously some really good content with a number of folks in Asia.

Michael，我想更深入了解汽車市場，並理解未來幾個季度業務的驅動因素。我認為你們與美國某家領先的電動車 OEM 有一些非常令人興奮的新內容（content），而且顯然也與亞洲多家客戶有很好的內容。

So if you could try to help us break down what your expectations are for the drivers of your automotive business over the next, I don't know, 6, 9 months relative to some, I'd say, fluctuations in unit expectations from some key customers, I'd really appreciate it.

所以如果你能幫我們拆解一下，你對未來——我不知道——6 到 9 個月汽車業務驅動因素的預期，相對於一些關鍵客戶在整車出貨預期上的波動，我會非常感謝。

Yes. I -- these type of products is not like a consumers. Like a 0.5 year and you can design you out, okay? And it took us a year -- okay, it took us years and it took us at least 12 months to work with our customers, the major suppliers, okay, and to put in the system and make a production worthy and working. And that's a long effort.

是的。我——這類產品不像消費性產品。像是 0.5 年就可能把你設計淘汰掉，好嗎？我們花了一年——好吧，我們花了好幾年，至少 12 個月，與客戶、主要供應商合作，好嗎？把它放進系統裡，做到可量產、可運作。那是很長的投入。

And frankly, I really -- don't really care, okay? As long as you win those socket or you win those projects, okay? I mean the revenue will come. And so when is the next 3 months or next 9 months? I don't really know, okay? I mean we thought from the last year -- again, we saw the last year, middle of this year, we'll start to ramp up. It didn't, okay? I mean -- and -- but I think it's next year, sometimes that we'll see more and more ADAS and also the tracking -- the new type of tracking inverters. And so that's pretty much as -- just as everybody else expected, okay? All these products are ramping up, okay, we'll go with it.

坦白說，我真的——不太在乎，好嗎？只要你贏下那些插槽（socket）或贏下那些專案，好嗎？我的意思是，營收會來的。所以接下來 3 個月或 9 個月會怎樣？我真的不知道，好嗎？我的意思是，我們去年以為——再說一次，我們去年看到，今年年中會開始放量。結果沒有，好嗎？我的意思是——而且——但我認為是明年某個時候，我們會看到越來越多 ADAS，以及牽引——新型的牽引逆變器。所以這大致上——就跟大家預期的一樣，好嗎？這些產品都在放量，我們就跟著走。

And if I can just add to that, that a lot of the customers that are picking up on design wins are skewed more heavily to EVs that are inviting new technology platforms. And that market has slowed in unit volumes observed. But the exciting part of this story is that we see that new platform launches for those customers are in position to ramp in the first half of next year. And we're seeing a proliferation of a broadening of those technologies going into more traditional internal combustion, or IC brands. So I think that the automotive market, while it's difficult to time, that our positioning is very secure.

另外如果我可以補充一下，許多正在取得設計導入（design wins）的客戶，較明顯偏向採用新技術平台的電動車（EV）。而我們觀察到該市場的出貨量（unit volumes）已放緩。不過這個故事令人振奮的部分在於，我們看到這些客戶的新平台上市，已具備在明年上半年放量爬坡的條件。同時我們也看到，這些技術正加速擴散，並導入到更傳統的內燃機（internal combustion）或 IC 品牌之中。因此我認為汽車市場雖然難以精準掌握時點，但我們的布局非常穩固。

Yes. Okay. That's a good point. And then the ADAS, okay, they start to ramp, okay? We were told at the beginning of the year and at the end of the year and -- now we were told, the next years. But all of these are new for us in the digital cockpit and also ADAS. So now they tell us early next year. And I don't know I can believe or not. I mean...

是的。好，這是個好觀點。那麼 ADAS 呢，好，他們開始放量爬坡了，對吧？我們在年初、年底都被告知會放量——現在又被告知是明年。但這些對我們來說在數位座艙（digital cockpit）以及 ADAS 都是新的。所以現在他們告訴我們明年初。我不知道我能不能相信。我的意思是……

We'll see, we'll see.

我們再看看，我們再看看。

We -- I guess my follow-up question, it's not, to me, the most strategically important part of your business, but I think it has a lot of different benefits is the consumer market in Asia. And I mean Bernie used the cookie jar analogy a number of times over the years. And the consumer market got down to a small enough percentage of your revenue.

我——我想我的追問是：對我而言，這並不是你們業務中最具策略重要性的部分，但我認為它有很多不同的好處，那就是亞洲的消費市場。我是說，Bernie 這些年多次用「餅乾罐（cookie jar）」的比喻。而消費市場占你們營收的比重已降到相當小。

It was -- I think there was an intention to potentially really lean in and try to regrow that business both from a revenue perspective and also, it gives you a lot of flexibilities around growth and margins. And maybe the demand environment is not there today to really lean in and regrow that. But I just wanted to do a pulse check on the strategy, that's still the intention to regrow that business as a percentage of revenue and you feel like you have the product portfolio to go and do that?

我想——當時可能有個意圖，是要更積極投入並嘗試把這塊業務重新做大，既從營收角度，也因為它能在成長與毛利上提供更大的彈性。也許今天的需求環境不支持你們大舉投入去重建成長。但我只是想確認一下策略脈動：你們仍然打算把這塊業務占營收的比重拉回來嗎？而且你們覺得你們有足夠的產品組合去做到這件事嗎？

The strategy is correct, okay? And we will -- it's demand -- as in the last quarter, I said like has dropped to unhealthy positions, okay, way too low. And there's a lot of money to be made. And margin may be lower and -- but it helped the EPS a lot.

這個策略是正確的，好嗎？而我們會——需求——就像我在上一季說的，已經掉到不健康的水位，好嗎？太低了。那裡其實有很多錢可以賺。毛利可能會比較低——但它對 EPS 的幫助很大。

So the second question is whether we have enough product, okay? We did a lot of them, and that came in last 0.5 years. And other ones will release in next couple of quarters and our next quarter also, and those will turn into revenues in the 0.5 year to 9 months' time.

所以第二個問題是我們是否有足夠的產品，好嗎？我們做了很多產品，這些是在過去半年內推出的。接下來幾季還會有其他產品發布，下一季也會有，而這些會在大約半年到 9 個月後轉化為營收。

We remain committed to the consumer marketplace as part of our diversification.

作為我們多元化的一部分，我們仍然致力於消費市場。

Absolutely. Okay.

完全同意。好。

Our next question is from Tore Fanberg of Stifel.

下一個問題來自 Stifel 的 Tore Fanberg。

I just had 2 quick follow-ups. First of all, on the buyback, I mean, this is from a size perspective something that's quite large. And we don't have much history with the company in regards to a size like that. So how should we think about the, I guess, philosophy with the buyback? You mentioned to offset dilution, but are you going to be opportunistic? Or are you like some other companies where you buy the stock regardless of the price? Just trying to understand some of the dynamics there.

我有兩個簡短的追問。首先關於庫藏股回購（buyback），我的意思是，就規模而言這相當大。我們過去對公司在這種規模上的回購沒有太多歷史可參考。所以我們應該如何理解回購背後的——我想是——理念？你提到是為了抵銷稀釋（dilution），但你們會伺機而為嗎？還是像某些公司那樣不管價格都買？只是想了解其中的一些動態。

Yes. So I'd like to comment on that very quickly is that when we looked at doing the buyback, we were demonstrating confidence in our free cash flow over the next 3-year window. And the goal here is to offset dilution that will naturally occur during that period of time. So we're going to apply a go-to-market strategy that is both opportunistic but also programmatic. So we don't have a timetable necessarily for how to implement it during that period, but it will reflect both existing market conditions as well as a systematic program.

是的。我想很快評論一下：當我們評估進行回購時，我們是在展現對未來三年期間自由現金流（free cash flow）的信心。這裡的目標是抵銷在那段期間自然會發生的稀釋。因此我們會採用一個兼具「伺機而為」但也「按計畫執行（programmatic）」的市場策略。所以在那段期間內如何落實，我們不一定有固定的時間表，但會同時反映當前市場狀況以及一個系統性的計畫。

What Bernie has implied is a bylaw, keep at a high, yes. Okay?

Bernie 的意思是有一條規則：維持在高位，是的。好嗎？

Yes, that's very helpful. The other follow-up, and I know this is a minor detail, but your lighting control business was up quite a bit in the quarter. Was that mainly because of notebook? Or was there something else going on there?

是的，這非常有幫助。另一個追問，我知道這是個小細節，但你們的照明控制（lighting control）業務本季成長不少。那主要是因為筆電（notebook）嗎？還是有其他因素？

Lighting business?

照明業務？

I'm sorry, Tore, you broke up a little bit. Were you talking about storage and computing?

抱歉，Tore，你剛剛訊號有點斷斷續續。你是在問儲存與運算（storage and computing）嗎？

No, no, no. Your -- so you have the lighting control business. I mean you showed this in your filings. It was up about 20% sequentially. And I was just wondering if that was because of notebook or anything else.

不，不，不。你們——你們有照明控制業務。我是說你們在申報文件裡有揭露。它季增大約 20%。我只是想知道那是因為筆電還是其他原因。

No, these are these decorate lighting. We don't have a lot of consumer business anymore. These are -- but these are small numbers, okay? I mean I don't know that specifically, but I do know we don't have a lot of consumers because these are really, really low price. These are industrial lightings and decorative lighting.

不是，這些是裝飾照明（decorative lighting）。我們現在已經沒有太多消費性業務了。這些——但這些數字很小，好嗎？我的意思是我不清楚具體原因，但我知道我們沒有太多消費端，因為這些價格真的非常、非常低。這些是工業照明和裝飾照明。

Yes. I apologize, Tore. I think that you broke up and we missed the heart of your question, which end market?

是的，抱歉 Tore。我想你剛剛訊號中斷，我們沒有聽到你問題的核心：你指的是哪個終端市場（end market）？

Lighting, he said.

他說是照明。

Yes. You have a lighting control versus DC to DC, right? So lighting control, it increased by $4.5 million sequentially. It was up 20%. It's a $100 million annual business. I mean it's not trivial, but obviously, small in the bigger scheme of things.

是的。你們有照明控制（lighting control）相對於 DC-DC，對吧？所以照明控制季增了 450 萬美元，成長 20%。這是一個年營收 1 億美元的業務。我是說這不算微不足道，但顯然在更大的格局裡算小。

Yes. Okay.

是的。好。

Yes. Again, Michael addressed it, but it's a general market.

是的。再說一次，Michael 已經回應了，但這是整體市場的因素。

I don't know it specifically, but that's the market where we're in, okay? We will position ourself, okay? We're not specifically in the consumer and in high volumes.

我不清楚具體原因，但那就是我們所在的市場，好嗎？我們會做好自身定位，好嗎？我們並不是特別在消費端、也不是在高出貨量的領域。

And also, it's in automotive as well.

而且它也在汽車領域。

Oh, yes, yes, yes. You're right. Okay.

哦，是的，是的，是的。你說得對。好。

(Operator Instructions) As there are no further questions, I would now like to turn the webinar back over to Bernie.

（操作員指示）由於沒有進一步的提問，我現在把網路研討會交回給 Bernie。

Just in closing here, I'd like to thank you all for joining us this webinar, and I look forward to talking to you again during the fourth quarter, which will likely be at the end of January. Thank you. Have a nice day.

最後做個結語，我想感謝各位參加本次網路研討會，我也期待在第四季再次與各位交流，時間很可能是在一月底。謝謝。祝各位有美好的一天。