芯源系統 (MPWR) 2013 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. Welcome to the Monolithic Power Systems conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time.

女士們、先生們，午安。歡迎參加 Monolithic Power Systems 電話會議。此時，所有參與者都處於只聽模式。稍後，我們將進行問答環節，屆時將有說明。

(Operator instructions)

（操作員說明）

As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Meera Rao, CFO of Monolithic Power Systems.

謹此提醒，本次電話會議正在錄音中。現在我想將會議交給主持人、Monolithic Power Systems 財務長 Meera Rao。

Thank you. Good afternoon, and welcome to the second quarter 2013 Monolithic Power Systems conference call. Michael Hsing, CEO and founder of MPS, is with me on today's call.

謝謝。下午好，歡迎參加 2013 年第二季 Monolithic Power Systems 電話會議。MPS 執行長兼創辦人 Michael Hsing 出席了今天的電話會議。

In the course of today's conference call, we will make forward-looking statements and projections that involve risks and uncertainties which could cause results to differ materially from management's current views and expectations. Risks, uncertainties and other factors that could cause actual results to differ are identified in the Safe Harbor statements contained in the Q2 earnings release and in our SEC filings, including our form 10-K filed on March 5, 2013 and in our form 10-Q filed today which is accessible through our website, www.monolithicpower.com. MPS assumes no obligation to update the information provided on today's call.

在今天的電話會議中，我們將做出前瞻性陳述和預測，這些陳述和預測涉及風險和不確定性，可能導致結果與管理階層目前的觀點和預期有重大差異。第二季財報中包含的安全港聲明和我們向 SEC 提交的文件（包括我們於 2013 年 3 月 5 日提交的 10-K 表格和 10-今天提交的問題可透過我們的網站www.monolithicpower. com 訪問。MPS 不承擔更新今天電話會議中提供的資訊的義務。

We will be discussing operating expense, 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. The table that is outlined for 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 will refer investors to the first and second quarter releases of 2012 and 2013, as well as to the reconciling tables that are posted on our website. 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 one year, along with the earnings release filed with the SEC earlier today.

我們將討論公認會計準則和非公認會計準則基礎上的營運費用、淨利潤和收益。這些非公認會計原則財務指標並非根據公認會計原則編制，不應被視為替代或優於根據公認會計原則編制的財務績效指標。概述的非公認會計原則財務指標與公認會計原則財務指標之間的調節表包含在我們向美國證券交易委員會提交的收益報告中。我將向投資者推薦 2012 年和 2013 年第一季和第二季的報告，以及我們網站上發布的調節表。我還想提醒您，今天的電話會議正在透過網路進行網路直播，並將與今天早些時候向 SEC 提交的收益報告一起在我們的網站上重播一年。

Let's start with the highlights. MPS had a great second quarter. Our revenue, gross margins, non-GAAP operating income and EPS grew sharply quarter over quarter. Revenue of $57.7 million grew 12% from Q1, with higher sales in the consumer, communication and industrial market segment. Gross margin expanded by 40 basis points. We leveraged the increase in sales and gross margin by holding non-GAAP operating expenses relatively flat for the prior quarter. As a result, non-GAAP operating income rose 45% over Q1, and non-GAAP earnings per share grew by 41%.

我們先從亮點開始吧。MPS 在第二季度表現出色。我們的收入、毛利率、非公認會計準則營業收入和每股收益逐季大幅成長。營收為 5,770 萬美元，較第一季成長 12%，消費、通訊和工業市場領域的銷售額增加。毛利率擴大了 40 個基點。我們透過將上一季的非公認會計準則營運費用維持在相對持平的水平，充分利用了銷售額和毛利率的成長。因此，非 GAAP 營業收入較第一季成長 45%，非 GAAP 每股盈餘成長 41%。

On the business front, our Monolithic Power modules, the MPM family has been very well received by customers. As everyone knows, power system design has always been a laborious and time-consuming process. It requires selecting and designing multiple components surrounding the IC to make the full system work efficiently. MPS has developed a power module that integrates the entire system into one package, which as expected, has been well received by our customers. Now customers can just drop in a module and move on to other challenges. We already have multiple design wins for power modules in industrial and high-end consumer markets. As we continue to expand the family of plug-and-play modules to address a variety of applications throughout the year, we expect to see steady revenue growth beginning in 2014.

在業務方面，我們的單晶片電源模組 MPM 系列深受客戶好評。眾所周知，電力系統設計一直是個費力又耗時的過程。它需要選擇和設計圍繞 IC 的多個組件，以使整個系統高效運作。MPS開發了一款將整個系統整合到一個封裝中的電源模組，正如預期的那樣，受到了客戶的好評。現在，客戶只需加入一個模組即可繼續應對其他挑戰。我們已經在工業和高端消費市場的電源模組方面獲得了許多設計勝利。隨著我們全年不斷擴展即插即用模組系列以滿足各種應用的需求，我們預計 2014 年開始收入將實現穩定成長。

Another market we have been focusing on is the fast-growing cloud computing segment. As we have mentioned in past earnings calls, we have had multiple design wins with emerging server manufacturers in Asia. At the same time, there has been extensive design activity with US server OEMS. As you know, US OEMS are typically more conservative in adopting new technologies, and are cautious in accepting new vendors. Despite this conservatism, the higher efficiency and compact form factor of the product enabled us to penetrate the US server market.

我們一直關注的另一個市場是快速成長的雲端運算領域。正如我們在過去的財報電話會議中提到的，我們已與亞洲新興伺服器製造商取得了許多設計勝利。同時，與美國伺服器原始設備製造商進行了廣泛的設計活動。如您所知，美國整車廠在採用新技術方面通常較為保守，對接受新供應商也持謹慎態度。儘管存在這種保守態度，但該產品更高的效率和緊湊的外形使我們能夠打入美國伺服器市場。

We are pleased to report that the US server maker has awarded MPS multiple Grantley platforms using our BCD3 family of point of load products. This success has led to additional design wins at this OEM with our current limit switches, and we are continuing to pursue other opportunities as well. Storage continues to be an exciting and growing market for MPS. Our continued introduction of p-mix for this application has increased penetration and led to design wins at several customers. Following the introduction of our initial front-end p-mix, MPS is now sampling two additional p-mix which will allow the customers to shrink the overall form factor. We believe these exciting products will ramp in the second half of next year and allow us to keep our leadership position in this market. Finally, as the Cool Power family has gained strength in the consumer market, we are pleased to see that revenue in the consumer segment has started to grow again.

我們很高興地報告，美國伺服器製造商已授予 MPS 多個使用我們的 BCD3 系列負載點產品的 Grantley 平台。這一成功為該 OEM 帶來了我們當前限位開關的更多設計勝利，我們也繼續尋求其他機會。對於 MPS 來說，儲存仍然是一個令人興奮且不斷成長的市場。我們針對該應用程式持續引入 p-mix 提高了滲透率，並贏得了多家客戶的設計勝利。在推出我們最初的前端 p-mix 後，MPS 現在正在對另外兩個 p-mix 進行採樣，這將使客戶能夠縮小整體外形尺寸。我們相信這些令人興奮的產品將在明年下半年大量湧現，並使我們能夠保持在這個市場的領導地位。最後，隨著Cool Power家族在消費市場的實力增強，我們很高興看到消費領域的收入開始再次成長。

Turning to the financial summary, our second-quarter revenue of $57.7 million was at the midpoint of our guidance. Compared with Q1, revenue was up by $6.2 million, or 12%. Our second-quarter gross margin was 53.6% compared with the 53.2% reported in the previous quarter. Our non-GAAP operating income increased from the $7 million reported in the prior quarter to $10.1 million in the second quarter as a result of higher revenue and relatively flat operating expenses. Q2 non-GAAP net income was $9.3 million or $0.24 per fully diluted share, compared with $0.17 per share in the previous quarter.

談到財務摘要，我們第二季的收入為 5770 萬美元，處於我們指導價值的中點。與第一季相比，營收成長了 620 萬美元，即 12%。我們第二季的毛利率為 53.6%，而上一季的毛利率為 53.2%。由於收入增加和相對平穩的營運費用，我們的非公認會計原則營運收入從上一季報告的 700 萬美元增加到第二季的 1,010 萬美元。第二季非 GAAP 淨利為 930 萬美元，即完全稀釋後每股收益 0.24 美元，而上一季為每股 0.17 美元。

Looking at our revenue by end market, consumer revenue grew $5.1 million to $23.9 million over the prior quarter, on increased product sales in general public, consumer and set up markets. Revenue in the communications and telecom markets also grew $1.6 million in the second quarter, to $14.9 million, primarily reflecting market share gains. Industrial revenue increased $800,000 to $8 million over the prior quarter. Storage and computing revenue declined $1.2 million to $10.9 million, as customers transitioned from older models to newer models.

從終端市場的收入來看，由於公眾、消費者和固定市場的產品銷售增加，消費者收入比上一季增加了 510 萬美元，達到 2,390 萬美元。第二季通訊和電信市場的收入也成長了 160 萬美元，達到 1,490 萬美元，主要反映了市場份額的成長。工業收入比上一季增加 80 萬美元，達到 800 萬美元。由於客戶從舊型號轉向新型號，儲存和運算收入下降了 120 萬美元至 1,090 萬美元。

Let's review our non-GAAP operating expenses. Excluding stock compensation, our non-GAAP operating expenses for the second quarter of 2013 were $21 million, an increase of $400,000 from the $20.6 million we spent in the first quarter. Moving on to our GAAP operating expenses, our GAAP operating expenses were $26 million in the second quarter, compared with $25.1 million in the first quarter. The only difference between non-GAAP operating expenses and GAAP operating expenses for these quarters is stock compensation expense; stock comp expense was $5 million in the second quarter, compared with $4.5 million in the prior quarter. Switching to the bottom line, on a non-GAAP basis, our Q2 net income was $9.3 million or $0.24 per fully diluted share. This compares to Q1 net income of $6.4 million or $0.17 per fully diluted share. These results are computed with an estimated tax rate of 7.5%.

讓我們回顧一下我們的非公認會計準則營運費用。不包括股票報酬，我們 2013 年第二季的非 GAAP 營運費用為 2,100 萬美元，比第一季的 2,060 萬美元增加了 40 萬美元。接下來是我們的 GAAP 營運費用，我們第二季的 GAAP 營運費用為 2,600 萬美元，而第一季為 2,510 萬美元。這些季度的非 GAAP 營運費用和 GAAP 營運費用之間的唯一區別是股票補償費用；第二季的股票補償費用為 500 萬美元，而上一季的股票補償費用為 450 萬美元。轉向淨利潤，按照非 GAAP 計算，我們第二季淨利潤為 930 萬美元，即完全稀釋每股收益 0.24 美元。相比之下，第一季淨利潤為 640 萬美元，或完全稀釋每股收益 0.17 美元。這些結果是根據 7.5% 的估計稅率計算的。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $201.3 million at the end of the second quarter of 2013, up from the $186.8 million at the end of the prior quarter, and also up from the $196.4 million at the end of the second quarter of 2012. In Q2, MPS generated operating cash flow of about $16.1 million. Cash proceeds from employee stock option exercises and employee stock purchases contributed another $6.3 million. We spent $7.9 million on capital equipment and software. Accounts receivable ended the second quarter at $20.3 million, compared with $22.7 million at the end of the prior quarter, and $21.4 million at the end of the second quarter 2012. Days of sales outstanding were down to 32 days in Q2, and 40 days in Q1 and 33 days in Q2 2012. Our internal inventory at the end of Q2 were $40.3 million, up from the $34.9 million at the end of the prior quarter. Days of inventory also increased from 132 days at the end of Q1 to 137 days at the end of Q2. Days of inventory in the distributor channel stayed the same as the prior quarter.

現在讓我們來看看資產負債表。截至 2013 年第二季末，現金、現金等價物和投資為 2.013 億美元，高於上一季末的 1.868 億美元，也高於 2012 年第二季末的 1.964 億美元。第二季度，MPS 產生的營運現金流約為 1,610 萬美元。員工股票選擇權行使和員工股票購買的現金收益另外貢獻了 630 萬美元。我們在資本設備和軟體上花費了 790 萬美元。第二季末應收帳款為 2,030 萬美元，上一季末為 2,270 萬美元，2012 年第二季末為 2,140 萬美元。2012 年第二季的應收帳款天數下降至 32 天，第一季下降至 40 天，第二季下降至 33 天。第二季末我們的內部庫存為 4,030 萬美元，高於上一季末的 3,490 萬美元。庫存天數也從第一季末的132天增加到第二季末的137天。經銷商通路的庫存天數與上一季持平。

I would now like to turn to our outlook for the third quarter of 2013. With design wins ramping and strong bookings for our newer products, we are seeing positive momentum in our business. Our revenue guidance is in the range of $63 million to $67 million. We expect gross margin to be in the range of 53.5 % to 54.5%. We expect stock-based compensation expense to be in the range of $4.3 million to $4.8 million. We also expect non-GAAP R&D and SG&A expense, excluding stock comp, in a range of $21 million to $22 million. We expect litigation expenses in the range of $300,000 to $400,000. We expect fully diluted shares to be in the range of 38.8 million to 39.2 million shares before share buyback. MPS's board approved the first phase of our capital allocation program, $100 million stock buyback program over a two-year period beginning in the third quarter of 2013.

我現在想談談我們對 2013 年第三季的展望。隨著設計贏得的勝利和新產品的強勁預訂，我們看到了業務的積極勢頭。我們的收入指引在 6,300 萬美元至 6,700 萬美元之間。我們預計毛利率將在53.5%至54.5%之間。我們預計股票補償費用將在 430 萬美元至 480 萬美元之間。我們也預期非 GAAP 研發和 SG&A 費用（不包括股票補償）在 2,100 萬美元至 2,200 萬美元之間。我們預計訴訟費用在 30 萬美元至 40 萬美元之間。我們預計股票回購前完全稀釋後的股票數量將在 3,880 萬股至 3,920 萬股之間。MPS 董事會批准了我們資本配置計畫的第一階段，即從 2013 年第三季開始的為期兩年的 1 億美元股票回購計畫。

In conclusion, MPS had an outstanding second quarter with sequential organic revenue growth of 12%, well above industry average. With our industry-leading products continuing to gain access to cloud computing, industrial and automotive markets, we are now in the new era of growth and diversification. I will now open the microphone for questions.

總而言之，MPS 第二季表現出色，有機收入連續成長 12%，遠高於行業平均。隨著我們領先業界的產品不斷進入雲端運算、工業和汽車市場，我們現在正處於成長和多元化的新時代。我現在打開麥克風提問。

Thank you.

謝謝。

(Operator instructions)

（操作員說明）

Patrick Wang, Evercore.

派崔克·王，Evercore。

Thanks a lot. Hello Michael and Meera. Congrats and really good progress on the new design wins.

多謝。你好，麥可和米拉。祝賀新設計取得了非常好的進展。

Just a couple questions. First, last quarter, you saw some upside in gross margins even though consumer was up a ton. It seems like a structural change taking place.

只是幾個問題。首先，上個季度，儘管消費者數量大幅成長，但毛利率有所上升。似乎正在發生結構性變化。

Can you talk about what happened in Q2 to get you a little bit better gross margins for your Q3 guide? And also, what your midterm implications are, particularly you just recently raised your margin targets at the analyst day.

您能否談談第二季發生的事情，使您的第三季指南的毛利率有所提高？此外，您的中期影響是什麼，特別是您最近在分析師日提高了利潤率目標。

Sure. Our gross margin improvement was a result of the product mix, and as you noticed, our consumer revenues increased. And we have some consumer products that also have pretty good margins. So the net result of that is we saw an improvement in Q2.

當然。我們的毛利率提高是產品組合的結果，正如您所注意到的，我們的消費者收入增加了。我們的一些消費品也有相當不錯的利潤。因此，最終結果是我們看到第二季度有所改善。

And as we have talked about the last few quarters, we expect our gross margin to continue to expand, but we expect it to be steady increase. And you can also see that in our guidance for Q3.

正如我們在過去幾個季度所討論的那樣，我們預計我們的毛利率將繼續擴大，但我們預計會穩定成長。您也可以在我們第三季的指導中看到這一點。

Okay and I guess the midterm implications, how should we think about that just over the next couple of quarters?

好吧，我猜中期影響，在接下來的幾季我們該如何考慮？

Patrick, this is Michael. As the revenue growth, and also we expect the gross margin to keep steadily increase as Meera said. The reason for that is that we focused on more value product rather than competing on the price.

派崔克，這是麥可。正如 Meera 所說，隨著收入的成長，我們預期毛利率將保持穩定成長。原因是我們專注於更有價值的產品，而不是價格競爭。

And as within the past year also, we have introduced all of these products which all have higher margin profile. And as we grow revenue, then the margin will grow.

與去年一樣，我們推出了所有這些具有較高利潤率的產品。隨著我們收入的成長，利潤率也會成長。

Okay great. Michael, your inventory is up 15% sequentially. I'm just curious, some or all of this was in reaction to the type of backlog you're seeing in the back half of the year, or was it something else?

好的，太好了。邁克爾，您的庫存比上一季增加了 15%。我只是很好奇，其中部分或全部是對今年下半年所看到的積壓類型的反應，還是其他原因？

Yes, as you noticed that inventory grows, and for the two points and two reasons for that, one is that we introduce a lot of new product. And the new product. And we can prepare some of the inventory for those products ramping in the second half of this year. And also from the fundamental point of view and the revenue, you see our revenue from $57.7 million to mid $60 million, and that is also a bigger jump. So we have to have some more inventory to cover the growth.

是的，正如您所注意到的，庫存增加了，有兩點和兩個原因，一是我們推出了許多新產品。還有新產品。我們可以為今年下半年增加的產品準備一些庫存。而且從基本面和收入的角度來看，我們的收入從 5,770 萬美元增加到 6,000 萬美元左右，這也是一個更大的跳躍。因此，我們必須有更多的庫存來滿足成長。

Got it. That's helpful. And then I have one more question, and then I'll jump back into queue.

知道了。這很有幫助。然後我還有一個問題，然後我會跳回隊列。

Michael, I just want to ask, we have been hearing about some M&A chatter recently, and I know you can't comment on it. But Meera talked about in the prepared comments that the Company's much different now than before. You're in a new era of growth. For instance, we are seeing you guys deliver much higher growth rates than your peers today. So given these changes, I'm just curious how you actually think about fair value for the company -- or just how you think about it today.

邁克爾，我只是想問一下，我們最近聽到了一些有關併購的傳聞，我知道你無法對此發表評論。但梅拉在準備好的評論中談到，公司現在與以前有很大不同。你正處於一個新的成長時代。例如，我們看到你們今天的成長率比同行高得多。因此，考慮到這些變化，我只是好奇你實際上如何看待公司的公允價值——或者只是你今天如何看待它。

Well, yes. As we have said, we have internally that the company transition from the smaller company to maybe a midsize level company. And there are a lot of changes from an organization point of view. From two years ago, we started to divide into the product line, when the organizations were very much different from a few years ago. We have through learning.

嗯，是的。正如我們所說，我們內部認為公司正在從小型公司轉型為中型公司。從組織的角度來看，也發生了許多變化。從兩年前開始，我們開始劃分產品線，當時的組織與幾年前大不相同。我們透過學習。

And also, when you look at from a value point of view, in the product we focus on a different product profile. And we are more focused on the value side. And that is all emphasized on the MPS and technologies and how we're competing in market and for the long-term and sustainable higher margin growth segment.

而且，當你從價值的角度來看時，在產品中我們關注的是不同的產品概況。而且我們更關注價值方面。這一切都強調 MPS 和技術，以及我們如何在市場上競爭以及實現長期、可持續的高利潤成長領域。

And now to answer your question, what is the value of the company? The Board recognizes that we are in the growth period and adjusted the very beginning. And on the one side, yes, we announced a $100 million buyback.

現在回答你的問題，公司的價值是什麼？董事會認識到我們正處於成長期，並一開始就進行了調整。一方面，是的，我們宣布了 1 億美元的回購。

And a couple of reasons for that. From a small company, we return our shareholder value, and one-time, we buyback 70 million shares, the one-time as you give $35 million for dividends. And these are sporadic.

這有幾個原因。從一家小公司開始，我們回報股東價值，我們一次性回購 7,000 萬股股票，一次性回購 3,500 萬美元作為股息。而這些都是零星的。

Now we're looking to look at the long-term views, and a comprehensive program to -- first to minimize the share gains, and second, how we reduced the study of the dividend. And those all haven't made a position yet, but I think it is very soon. And the third one is how we acquired the technology company to two new to expand.

現在我們正在著眼於長期觀點和一個全面的計劃，首先是盡量減少股票收益，其次是我們如何減少對股利的研究。這些都還沒有表態，但我認為很快就會表態。第三個是我們如何收購兩家新的科技公司來擴張。

So these are really the value for our shareholders. We form a transitioning from a smaller company to a larger company, and also we're going to reflect to MPS long-term values. So we should apply our shares now to return our shareholder value.

所以這些確實是我們股東的價值。我們正在從一家小公司過渡到一家大公司，我們也將反映 MPS 的長期價值。所以我們現在應該用我們的股票來回報我們的股東價值。

That's terrific. Thanks so much, and congrats again.

太棒了。非常感謝，並再次恭喜。

Tore Svanberg, Stifel Nicolaus

托雷·斯文伯格、史蒂菲爾·尼古拉斯

Thank you and nice quarter. First question, you talked about backlog and bookings doing quite well. Can you just give us some sense of how your visibility is looking now with two months left in the quarter?

謝謝你，美好的季度。第一個問題，您談到積壓和預訂做得很好。您能否讓我們了解一下在本季度還剩兩個月的情況下您的知名度如何？

We saw very good bookings as we went through last quarter, and we see that trend continue right now. And when you look at resells in the channel, that is also very good resells last quarter, and we're still seeing good in resells through July. So right now we are feeling pretty comfortable.

上個季度我們看到了非常好的預訂量，我們看到這種趨勢現在仍在繼續。當您查看管道中的轉售情況時，您會發現上個季度的轉售情況也非常好，並且我們在整個 7 月仍然看到良好的轉售情況。所以現在我們覺得很舒服。

Very good. Any your consumer business bounced back quite significantly, and you had mentioned some discretionary consumer growth there. Could you talk specifically to that segment? Where there any rather programs our product launches that you benefited from?

非常好。您的任何消費者業務都顯著反彈，並且您提到了一些可自由支配的消費者成長。能具體談談那個部分嗎？我們的產品發布有哪些方案讓您受益？

Sure. Some of the areas that we have grown in consumer is what I call general-purpose consumer, which consists of a lot of small different product lines. And these are a lot of design wins that we had with our Cool Power family of products that have started to ramp, and as a customer, they are also introducing the new models. This is something that we had alluded to also back in Q1, and all the revenues coming in now in Q2, and you're also going to see growth in Q3 in consumer as these models ramp.

當然。我們在消費者領域發展的一些領域就是我所說的通用消費者，它由許多小的不同產品線組成。這些是我們在 Cool Power 系列產品中取得的許多設計勝利，這些產品已經開始增加，作為客戶，他們也推出了新型號。這也是我們在第一季提到的，所有收入現在都在第二季出現，隨著這些模型的成長，你也會看到第三季消費者的成長。

Thanks Tore for recognizing that. And I received some concerns from our shareholders that we are get rid of the consumer business, and at the same time, we are starting focusing on another business. So my response was, yes, consumers were now walking away. And the Cool Power family were introduced last year and will start to ramp.

感謝托雷認識到這一點。我收到股東的一些擔憂，他們擔心我們正在擺脫消費者業務，同時我們開始專注於另一項業務。所以我的回答是，是的，消費者現在正在離開。Cool Power 系列於去年推出，並將開始擴大規模。

So at the time, we have not crossed yet, and I can only tell you our shareholder was our intention. Now finally, we delivered, and we started -- you will start to see the right train. The percentage of the total consumer business will reduce. But, the revenue will grow.

所以當時我們還沒有跨越，我只能告訴你我們的股東是我們的意圖。現在終於，我們交付了，我們開始了——你將開始看到正確的火車。消費業務佔總消費的比例將會降低。但是，收入將會成長。

Very good. And congratulations on those Grantley wins, could you give us a sense of when we will see the revenue contribution from those?

非常好。恭喜格蘭特利的勝利，您能否告訴我們什麼時候才能看到這些勝利帶來的收入貢獻？

Second half of next year. That is the Grantey cycle we expect to see revenue in the second half of next year.

明年下半年。這就是我們預計明年下半年會看到收入的格蘭特週期。

Very good. Last question, I know you still have some important design wins for communication in the pipeline. Can you just update us on those and especially on timing please?

非常好。最後一個問題，我知道您在管道中的通訊方面仍然有一些重要的設計成果。您能否向我們介紹最新情況，尤其是時間安排？

We have very extensive engagement on the design activities front. We also have a few design wins that are going to be ramping up, and you'll see the revenue -- some revenue this year, mostly in 2014.

我們在設計活動方面進行了非常廣泛的參與。我們還有一些設計成果將持續增加，您將看到收入——今年的一些收入，大部分是在 2014 年。

Very good. And congratulations again.

非常好。再次恭喜。

The power modules are ready to grow in that segment.

電源模組已準備好在該領域發展。

Very good, congratulations on the quarter. Thank you.

非常好，恭喜這個季度。謝謝。

Vernon Essi, Needham & Company

弗農‧埃西，李約瑟公司

Thank you very much and congrats on the results and those Grantley wins. Michael, if you could give us a profile or maybe a little more color on the customer. You said it was a domestic customer, and any information I guess regarding sort of what sort of penetration rate you might have within the customer's product line portfolio?

非常感謝，並祝賀格蘭特利獲勝的結果。邁克爾，您能否給我們一份個人資料或更多關於該客戶的資訊。你說這是一個國內客戶，我猜有關於你在該客戶的產品線組合中可能擁有什麼樣的滲透率的資訊嗎？

Okay I'll answer the second part of your question first. The percentage of the design wins that is still at the very beginning, and the key is that we penetrated. And we will see a meaningful ramp starting next year. And then next year, definitely we will move the needle. On the revenue needle.

好的，我先回答你問題的第二部分。設計勝出的比例仍處於最初階段，關鍵在於我們的滲透。從明年開始，我們將看到一個有意義的成長。明年，我們肯定會取得進展。在收入針上。

And the first question about what customers. I would answer all of them. All of the programs. Including in the US, and in Asia. Asia means Japan, China, Taiwan.

第一個問題是關於什麼客戶。我會全部回答。所有的節目。包括在美國和亞洲。亞洲是指日本、中國、台灣。

Okay, and I assume that straddles both enterprise and cloud-based opportunities?

好的，我認為這涵蓋了企業和基於雲端的機會？

Yes.

是的。

Okay. And then just to go back to the computing segment, it was a little bit -- I guess that you have had a sluggish performance, and in your prepared comments, you said that it would transition from an old product to new product. Is this on the storage side? Or is this on the computing side?

好的。然後回到計算領域，有一點——我猜你們的表現很遲緩，在你們準備好的評論中，你們說它將從舊產品過渡到新產品。這是在儲存方面嗎？還是這是在計算方面？

On the storage side as our customers transition from the older models to the newer models. That is what impacted our Q2 storage revenues.

在儲存方面，我們的客戶從舊型號過渡到新型號。這就是影響我們第二季儲存收入的原因。

Do you have any visibility as to how that might shape up in the third quarter? Does it still looks to be sluggish? Or is it snapping back?

您對第三季的情況有什麼了解嗎？看起來還是很遲鈍嗎？或者它正在反彈？

I think it is in a transitional period. The SSD in North America, the traditional Internet companies, it changes, the adopting rate is kind of slower. And that reflects that.

我認為現在正處於一個過渡時期。SSD在北美，傳統的網路公司，它發生了變化，採用速度有點慢。這反映了這一點。

But we see it in the second half and maybe in the beginning of the later second half of the year in the next year. So the revenue will start accelerating. And at the same time, like changing the models of the SSD, as well as the HHD in that case. So that is the situation we have now.

但我們會在下半年甚至明年下半年初看到它。因此，收入將開始加速。同時，就像改變SSD的型號，以及在這種情況下的HHD。這就是我們現在的情況。

Okay. And my last question here, I guess just a follow-up on some of the earlier questions from Tore, on the consumer side. You had indicated at your analyst event the had a higher profile gaming console when if I remember correctly, there was a pretty decent amount of dollar content in that product. Is this, just out of curiosity, what sort of sizing of that will contribute to the back half lift you have going in consumer?

好的。我的最後一個問題，我想只是 Tore 之前在消費者方面提出的一些問題的後續。您曾在分析師活動中表示，該產品擁有更高配置的遊戲機，如果我沒記錯的話，該產品中的美元含量相當可觀。出於好奇，這是否會有助於您在消費者中獲得的後半升力？

I know you have a broad range of Cool Power opportunities. But is there a way you could sort of strip out what that console opportunity means relative to the rest of the consumer business?

我知道您擁有廣泛的 Cool Power 機會。但有沒有一種方法可以消除控制台機會相對於其他消費業務的意義？

We are going to see the gaming console design win ramping up in Q3 and Q4. And I don't want to be anything more specific than saying we expect it to be several million dollars of revenue.

我們將看到遊戲機設計在第三季和第四季的勝利不斷增加。我不想說得更具體，只是說我們預計收入將達到數百萬美元。

Okay, let me try this another way, and maybe you still -- you're not giving me many details. But if you were to strip out the console, would you still be seeing growth in consumer through the quarter on quarter for the rest of the year?

好吧，讓我嘗試另一種方式，也許你仍然沒有給我很多細節。但如果你要剔除遊戲機，你還會看到今年剩餘時間消費者的季度環比成長嗎？

We would definitely see an increase in Q3.

我們肯定會看到第三季的成長。

Even without it. That's what I'm trying to determine, okay. Okay, thank you very much.

即使沒有它。這就是我想確定的，好吧。好的，非常感謝。

Ross Seymore, Deutsche Bank.

羅斯·西莫爾，德意志銀行。

Congratulations Michael and Meera. Just a question on the mix side of things and specifically on gross margin. I was impressed that your gross margin hit your guidance range even though it appears that the mix was actually a big headwind with consumer growing and the computer/storage side falling off.

恭喜麥可和梅拉。只是一個關於混合方面的問題，特別是關於毛利率的問題。令我印象深刻的是，你們的毛利率達到了指導範圍，儘管隨著消費者的成長和電腦/儲存方面的下滑，這種組合實際上是一個巨大的阻力。

Was that in fact the dynamic that you overcame in the second quarter? So, what drove it up I guess would be the question? Thank you.

這實際上是你在第二季度克服的動力嗎？那麼，我想是什麼推動了它的發展呢？謝謝。

Yes. Remember, last year and the beginning of this year, we said that the call most power intrinsically had a lower cost structure, Cool Power. And so again, we also, the second factors that increase the gross margin is that we focused only on the value side. And we are not going out and just competing on the price to gain market shares. So we pick and choose this time.

是的。請記住，去年和今年年初，我們說過，大多數電源本質上具有較低的成本結構，Cool Power。同樣，我們也認為，增加毛利率的第二個因素是我們只關注價值面。我們不會走出去，只是透過價格競爭來獲得市場份額。所以我們這次挑挑揀揀。

So that is the result. Even though we grow the consumer business relatively and the large portions, we still maintain the gross margins.

這就是結果。儘管我們的消費業務相對成長且比例較大，但我們仍然保持了毛利率。

Great. I guess my first of two follow-ups is looking into the third quarter, you're giving very solid revenue growth guidance. Any outliers as far as the four segments which one you think will grow faster and slower and what those drivers are please?

偉大的。我想我的兩個後續行動中的第一個是展望第三季度，你們給出了非常可靠的收入成長指引。就這四個細分市場而言，您認為哪一個細分市場的成長速度會更快或更慢，有哪些異常值？

Not really. We don't have any outlier out there. And a more systematic growth across the board. And I'm glad to see that finally the consumer side going down of the quarter and out is going up.

並不真地。我們沒有任何異常值。以及更有系統的全面成長。我很高興看到消費者方面最終在本季度有所下降，然後又有所上升。

And finally, all segments, the revenue's going to grow. So we are going to keep going that way. Again, the percentage of our consumer business, the growth rate will be slower than other segments.

最後，所有細分市場的收入都會成長。所以我們將繼續這樣做。再次，我們的消費業務所佔比重，成長速度會慢於其他細分領域。

Great. And I guess as my last question, and I know you are not guiding specifically for the fourth-quarter, but I historically you have been I guess hyper seasonal would be the best way to say it. And I think your historical average for the fourth quarter is down roughly 10% sequentially in revenues. How should we think about the revenue trajectory given all the new product launches that you have heading into the fourth quarter of this year? Thank you.

偉大的。我想作為我的最後一個問題，我知道您並不是專門針對第四季度進行指導，但從歷史上看，您一直是我認為超季節性將是最好的說法。我認為第四季的歷史平均收入比上一季下降了大約 10%。考慮到今年第四季你們推出的所有新產品，我們該如何看待營收軌跡？謝謝。

One of the things that I've noticed for the last few years is that seasonality is trumped by cyclicality of the market every single time. So that kind of makes it a hard one to answer.

過去幾年我注意到的一件事是，季節性每次都被市場的周期性所壓倒。所以這使得這個問題很難回答。

What particularly for us this year is that we have a lot of design wins that are ramping. So we don't know what the market cyclicality is going to be like at that time. And if that is going to offset any of this sort of ramp that we have right now.

今年對我們來說特別重要的是，我們獲得了許多正在增加的設計勝利。所以我們不知道那時候市場的周期性會是什麼樣子。如果這會抵消我們現在擁有的任何此類增長。

So that is something that we will not have much visibility on at this time. So when we look at our design wins and the demand out there, we still feel pretty prudent.

因此，目前我們對這一點還沒有太多了解。因此，當我們看到我們的設計成果和市場需求時，我們仍然感到非常謹慎。

Add a little more color on that. I think in the last couple of years, our focus has changed. So our seasonality should be impacted too. So looking at all the design win activity in the revenue ramps, we feel very positive for the four quarters.

在上面添加一點顏色。我認為在過去幾年中，我們的重點發生了變化。所以我們的季節性也應該受到影響。因此，看看收入成長中的所有設計獲勝活動，我們對這四個季度感到非常積極。

Great, congrats again. Thanks.

太好了，再次恭喜。謝謝。

Steven Smigie, Raymond James.

史蒂文·斯米吉，雷蒙德·詹姆斯。

Thanks a lot, and congratulations on the nice quarter and guide. It looks like on the guidance, the revenue is pretty close to your previous record high. Congrats also on the $100 million buyback.

非常感謝，並祝賀這個美好的季度和指南。從指導來看，收入非常接近之前的歷史新高。也恭喜 1 億美元的回購。

On the press release on the buyback, I think you talked about starting the buyback relatively soon, takes place over a couple of years. That you would do it sort of as you see fit. But, is it the case that you might do more of it on the front end versus the back end just because it seems like you're hitting a strong growth phase here, it seems like stock is probably going to be cheaper now than in the future? Would we expect to see more share buyback earlier on, like $100 million?

在有關回購的新聞稿中，我認為您談到了相對較快地開始回購，該回購將在幾年內進行。你會按照你認為合適的方式去做。但是，您是否可能在前端而不是後端做更多的事情，只是因為您似乎在這裡正處於強勁的增長階段，看起來股票現在可能會比在後端便宜未來？我們是否會預計早些時候會看到更多股票回購，例如 1 億美元？

Of course we cannot tell you what the formula buying patterns. And yes, we will start to buy as soon as the rules and the laws allow.

當然我們無法告訴您配方奶粉的購買模式是什麼。是的，只要規則和法律允許，我們就會開始購買。

Okay, great. And just with regard to process technology, BCD3 has been out there for a while now. Have you seen anybody come out with anything that is catching up little bit on that?

好的，太好了。就製程技術而言，BCD3 已經問世一段時間了。您是否見過有人推出了一些能夠趕上這一點的產品？

Yes, the BCD4 product is out. And we of course low revenues, it's really 2015 revenue, and we have a much bigger portion of that. And so, there is a right off in the BCD3.

是的，BCD4 產品已經出來了。當然，我們的收入很低，這實際上是 2015 年的收入，而且我們所佔的比例要大得多。因此，BCD3 中有一個右關。

Yes, the question is more just, obviously you guys came up with BCD3 very soon after come out BCD4 as a way to I think get ahead of some folks and things like that. And am just wondering if you have seen more competition at the BCD3 level? I realize that was the case that you are beyond that.

是的，問題更公正，顯然你們在 BCD4 推出後不久就想出了 BCD3，作為我認為領先於某些人和類似事情的一種方式。我只是想知道您是否在 BCD3 級別上看到了更多的競爭？我意識到情況就是這樣，你超出了這個範圍。

No, we haven't seen anything yet. Not that we know of.

不，我們還沒有看到任何東西。據我們所知並非如此。

Okay great. And then similar on the MPMs, sounds like you have some great innovations there obviously. And you have the first genius inspiration to pull all of that together.

好的，太好了。MPM 也類似，聽起來你們顯然有一些偉大的創新。你有第一個天才的靈感將所有這些整合在一起。

Have other folks seen what you have done and started making noise about being able to come out with something like that? Or do you think you still have your lead on some of that kind of stuff?

其他人是否看到你所做的事情並開始大聲疾呼能夠做出類似的事情？或者您認為您在某些此類事情上仍然處於領先地位嗎？

I have not seen the landscape changing it. There's always some more. This is what customers always wanted. And I think that we are the first to deliver that kind of a product.

我還沒有看到風景改變它。總有更多。這就是客戶一直想要的。我認為我們是第一個提供此類產品的公司。

And there is some product in the market that is way too expensive, and we focus on the very small need of the customer. And so like MPS, the commercialize the BCD3 process, and at this time, we are going to commercialize this module business.

市面上有些產品太貴了，而我們專注於客戶的微小需求。所以像MPS一樣，把BCD3工藝商業化，這時候我們要把這個模組業務商業化。

Okay, great. And just following up on Ross's question about the Q4 seasonality. It doesn't have to be specific to Q4, but if we were to see some seasonal drop, assuming you could give some color on what might happen to gross margin?

好的，太好了。接下來是羅斯關於第四季季節性的問題。它不一定是針對第四季度的，但如果我們看到一些季節性下降，假設您可以對毛利率可能發生的情況提供一些說明？

You guys are obviously fabulous, and it seems like a lot of the new innovations you have come out with, Cool Power for example, are on lower costs. So even in say a modest seasonal decline, could you still expand gross margin through that?

你們顯然非常棒，你們推出的許多新創新（例如 Cool Power）似乎成本更低。因此，即使季節性略有下降，您仍然可以透過這種方式擴大毛利率嗎？

It kind of depends upon the revenue levels. And the mix of products. So I could see a scenario where revenue could be down seasonally and gross margins could still expand. But again, it depends upon the revenue level and the mix.

這在某種程度上取決於收入水平。以及產品的組合。因此，我可以看到收入可能會季節性下降而毛利率仍可能擴大的情況。但同樣，這取決於收入水平和組合。

But I don't see a lot of downside. I don't see a lot of downside. The market and the macro economics can change. And as we see the consumer business grow and the rest of the business as you see growing and the last three or four quarters, and our gross margin will keep going higher.

但我沒有看到太多的缺點。我沒有看到太多的缺點。市場和宏觀經濟可能會發生變化。當我們看到消費者業務和其他業務的成長以及過去三、四個季度的成長時，我們的毛利率將繼續走高。

Okay great. And my last question is just an operating expenses. Looks I guidance here is pretty good and OpEx control. Obviously revenues helping because of the big jump. How should we think about that going forward?

好的，太好了。我的最後一個問題只是營運費用。看起來我這裡的指導非常好並且營運成本控制。顯然，收入的大幅成長有所幫助。未來我們該如何思考這個問題？

Obviously you have your target model out there. But my thought is, you have got a bunch of really successful products it sounds like ramping here that are in areas like competing networking that are sort of outside of your typical end markets. If those ramp pretty quickly, would you have to add support for that? I think that typically would be more significant support than what you guys have done in the past.

顯然你已經有了你的目標模型。但我的想法是，你已經擁有了一堆非常成功的產品，聽起來像是在競爭網路等領域，這些產品在典型的終端市場之外。如果這些增長得很快，您是否需要增加對此的支援？我認為這通常會比你們過去所做的提供更重要的支持。

We expected to hold OpEx relatively flat going forward as well. We believe we have the support that we need, and we may have to do an occasional hire. But I think you will find that our revenue growth is going to far outstrip any increase in OpEx.

我們預計未來營運支出也將保持相對穩定。我們相信我們擁有所需的支持，我們可能需要偶爾進行招募。但我認為你會發現我們的收入成長將遠遠超過營運支出的成長。

Yes, I will give a little more color on it. Some of our large shareholders say we should expand and grow or they should not grow the OpEx, so we take a moderate approach. We see the sales and marketing side is our weakness, and that we should keep expanding and the overall number should have a very modest increase.

是的，我會給它更多的色彩。我們的一些大股東表示我們應該擴張和成長，否則他們不應該增加營運支出，因此我們採取了溫和的方法。我們認為銷售和行銷方面是我們的弱點，我們應該繼續擴張，總體數量應該會有一個非常溫和的成長。

Great, okay thank you.

太好了，好的，謝謝。

(Operator instructions)

（操作員說明）

Mitch [Honda], Wells Fargo.

米奇[本田]，富國銀行。

Hello, thanks, this is Mitch Ulman dialing in for David Wong. Meera, can you talk about inventory levels at your customers for the different end markets that you serve and what you are seeing there?

您好，謝謝，我是米奇·烏爾曼 (Mitch Ulman)，為大衛·王 (David Wong) 撥打電話。Meera，您能談談您所服務的不同終端市場的客戶庫存水準以及您在那裡看到的情況嗎？

So we cannot see the levels, and our inventory in the channel has a sense and number of days has been at the same level for the last four quarters. We have been able to hold the inventory level, and we carry more inventories so we can meet the customer's end demand. And inventory that is in the channel right now, we are also seeing a mix with are changing from the older products to the newer product. So it is all in line with our sales strategy.

所以我們看不到水平，我們在渠道中的庫存有一定的意義，並且天數在過去四個季度一直處於同一水平。我們已經能夠保持庫存水平，並且我們擁有更多的庫存，這樣我們就可以滿足客戶的最終需求。現在通路中的庫存，我們也看到混合產品正在從舊產品轉向新產品。所以這一切都符合我們的銷售策略。

Okay, thank you. And can you provide us with a quick update on what percentage of revenue at the moment stems from new product versus your older product?

好的，謝謝。您能否向我們提供有關目前新產品與舊產品的收入百分比的快速更新資訊？

Yes, the new product revenue is about 37% to 38% of our revenue right now.

是的，新產品收入目前約占我們收入的 37% 至 38%。

Okay, great. And then finally, can you maybe talk about any traction that you are getting with power modules targeting the SSD market?

好的，太好了。最後，您能否談談針對 SSD 市場的電源模組的吸引力？

I would say we have used a couple of p-mix this quarter, and this is in addition to the front and p-mix that we had released I think about a year ago. So one is a higher voltage p-mix, and the other one is a companionship that works with the front-end.

我想說我們這個季度使用了幾個 p-mix，這是我們一年前發布的 front 和 p-mix 的補充。因此，一個是更高電壓的 p-mix，另一個是與前端配合使用的伴侶。

And also, the power module and the PMP for the SSD -- the revenue will now ramp into next year.

此外，電源模組和 SSD 的 PMP——收入將在明年開始增加。

Yes, the new p-mix that we have introduced. MPM module.

是的，我們推出了新的 p-mix。MPM 模組。

Okay. Thank you very much and congratulations again on the quarter.

好的。非常感謝並再次恭喜本季。

Lena Zhang, Blaylock

張莉娜，布萊洛克

Thank you for taking my question and congratulations as well. Only one for me regarding the internal inventory. In the last two quarters, the increases in internal inventory outpaced your revenue growth. Is that safe to assume the most of the new products are coming in Q4?

感謝您提出我的問題並表示祝賀。我只有一份關於內部庫存的資料。在過去兩個季度中，內部庫存的成長超過了收入的成長。假設大多數新產品將在第四季推出，是否安全？

We continue to see our new products being designed in and the revenues from these ramping. So we are holding this inventory in support of that demand. And as we also have started setting in some of our new products into larger customers, they also require us to hold more inventory of these newer products.

我們繼續看到我們的新產品被設計出來，而這些產品帶來的收入不斷增加。因此，我們持有這些庫存來支持這種需求。由於我們也開始將一些新產品投放到更大的客戶中，因此他們也要求我們持有更多新產品的庫存。

In some situations where we are the only supplier or we are one of two, and they want assurances that we have product ready. So everything we're doing is in support of our new business.

在某些情況下，我們是唯一的供應商，或者我們是兩個供應商之一，他們希望保證我們已準備好產品。因此，我們所做的一切都是為了支持我們的新業務。

Great, thank you.

太好了，謝謝。

I'm not showing any other questions in the queue at this time. I'd like to turn it back to Ms. Rao for any closing comments.

目前我不會在隊列中顯示任何其他問題。我想將其轉回饒女士以徵求結束意見。

We very much appreciate your joining us for this call and look forward to talking to you next quarter at the next earnings release. Thank you and have a nice day.

我們非常感謝您參加本次電話會議，並期待在下個季度的下一次財報發佈時與您交談。謝謝您，祝您有愉快的一天。

Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for your participation and have a wonderful day. You may all disconnect.

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與，祝您有美好的一天。你們都可以斷開連線。