芯源系統 (MPWR) 2017 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Fourth Quarter 2017 Earnings Conference Call. (Operator Instructions) And as a reminder, this conference is being recorded. I would now like to turn the conference over to Monolithic's Vice President and Chief Financial Officer, Bernie Blegen. Please go ahead.

各位女士、各位先生，大家好，歡迎參加 Monolithic Power Systems 2017 年第四季財報電話會議。(接線員指示) 並提醒各位，本次會議將被錄音。現在我想把會議交給 Monolithic 的副總裁兼財務長 Bernie Blegen。請開始。

Thank you very much. Good afternoon, and welcome to the fourth quarter and fiscal year 2017 Monolithic Power Systems conference call. Michael Hsing, CEO and Founder of MPS is with me on today's call. In the course of today's conference call, we will make forward-looking statements and projections that involve risk and uncertainty, which could causes 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 Q4 earnings release and in our SEC filings, including our Form 10-K filed on March 1, 2017, and Form 10-Q, filed on November 6, 2017, both of which are accessible through our website, www.monolithicpower.com.

非常感謝。各位下午好，歡迎參加 Monolithic Power Systems 2017 年第四季及 2017 會計年度財報電話會議。MPS 的執行長兼創辦人 Michael Hsing 也與我一同參與今天的電話會議。在今天的電話會議過程中，我們將作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。請參閱我們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，已在第四季財報新聞稿的安全港聲明以及我們向 SEC 提交的文件中列示，包括於 2017 年 3 月 1 日提交的 Form 10-K，以及於 2017 年 11 月 6 日提交的 Form 10-Q；上述文件均可透過我們的網站 www.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, pretax 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.

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、研發與銷售及管理費用（SG&A）、營業利益、利息及其他收益、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據 GAAP 編製，不應被視為可替代或優於依據 GAAP 編製之財務績效衡量指標。

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 Q1 through Q4 releases for both 2016 and 2017, as well as to the reconciling tables that are posted on our website.

我們的財報新聞稿中包含一份表格，說明非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節（reconciliation），且我們已將該新聞稿提交至 SEC。我也建議投資人參閱 2016 年與 2017 年第一季至第四季的新聞稿，以及我們網站上所公布的調節表。

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.

我也想提醒各位，今天的電話會議正透過網際網路進行即時網路直播，並將在我們的網站上提供為期一年的重播，同時也會提供今天稍早已向 SEC 提交的財報新聞稿。

Continuing with our now 5-year trend, we are pleased to announce 2017 was another record year for revenue. Full year revenue of $470.9 million was up 21.2% from 2016. The year-over-year growth was nearly double that of the analog semiconductor industry, which SIA estimates grew 10.9% over the prior year.

延續我們目前長達 5 年的趨勢，我們很高興宣布 2017 年再度創下營收新高。全年營收為 4.709 億美元，較 2016 年成長 21.2%。年增率幾乎是類比半導體產業的兩倍；SIA 估計該產業較前一年成長 10.9%。

Looking at our 2017 over 2016 revenue growth by market segment; automotive revenue, up 58.7%; compute and storage, up 25.1%; consumer, up 23.4%; and industrial revenue, up 12.9%.

以市場區隔來看，2017 年相較 2016 年的營收成長如下：車用營收成長 58.7%；運算與儲存成長 25.1%；消費性成長 23.4%；工業成長 12.9%。

Communications revenue was essentially flat between years. Let me speak to highlights by market segment. Full year automotive revenue grew $19.9 million to $53.9 million in 2017. This growth primarily represented increased sales of infotainment, safety and connectivity application products. Automotive is MPS's largest SAM opportunity at $6 billion, and we are in the early stages of penetrating this market.

通訊營收在兩年間基本持平。我來談談各市場區隔的重點。2017 年全年車用營收增加 1,990 萬美元，達到 5,390 萬美元。此成長主要來自資訊娛樂（infotainment）、安全與連線應用產品的銷售增加。車用是 MPS 最大的 SAM 機會，規模約 60 億美元，而我們仍處於切入該市場的早期階段。

In the years ahead, we plan to offer a number of new products for applications in infotainment, body controls, lighting, EV batteries and ADAS. Automotive revenue represented 11.4% of MPS's full year 2017 revenue compared with 8.7% for 2016.

在未來幾年，我們計畫推出多款新產品，應用於資訊娛樂、車身控制、照明、電動車（EV）電池以及 ADAS。車用營收占 MPS 2017 年全年營收的 11.4%，相較之下 2016 年為 8.7%。

Compute and storage revenue grew $20.2 million to $100.8 million in 2017. This growth reflected strong sales growth for cloud computing, SSD storage and high-end notebooks. Compute and storage revenue represented 21.4% of MPS's total revenue in 2017.

2017 年運算與儲存營收增加 2,020 萬美元，達到 1.008 億美元。此成長反映雲端運算、SSD 儲存以及高階筆記型電腦的強勁銷售成長。2017 年運算與儲存營收占 MPS 總營收的 21.4%。

Consumer revenue grew $36.0 million to $189.8 million in 2017. This growth reflected gains in gaming and high-value consumer markets, including home appliances and battery management systems. Consumer revenue represented 40.3% of MPS's full year 2017 revenue.

2017 年消費性營收增加 3,600 萬美元，達到 1.898 億美元。此成長反映我們在電競與高價值消費市場的斬獲，包括家電與電池管理系統。消費性營收占 MPS 2017 年全年營收的 40.3%。

Industrial revenue grew $7.2 million to $62.9 million in 2017. This growth reflected sales for applications and power sources, point of sale systems and industrial meters. Industrial revenue represented 13.4% of MPS's full year 2017 revenue.

2017 年工業營收增加 720 萬美元，達到 6,290 萬美元。此成長反映應用與電源、銷售點（POS）系統以及工業儀表的銷售。工業營收占 MPS 2017 年全年營收的 13.4%。

Turning back to our overall financial performance.

接著回到我們整體的財務表現。

On a GAAP basis, full year 2017 gross margin of 54.8% expanded 50 basis points from the prior year. GAAP pretax income grew 44.8% over 2016 to $82.9 million. On a per share basis, GAAP net earnings of $1.50 were 19% higher in 2016.

以 GAAP 基礎計算，2017 年全年毛利率為 54.8%，較前一年擴大 50 個基點。GAAP 稅前利益較 2016 年成長 44.8%，達到 8,290 萬美元。以每股計算，GAAP 每股淨利為 1.50 美元，較 2016 年高出 19%。

The enactment of the Tax Cuts and Jobs Act of 2017 resulted in a one-time GAAP tax expense of $13.5 million or $0.31 per share. This new tax legislation also allows MPS to repatriate foreign-sourced earnings. The one-time charge increased our 2017 tax rate from 5.1% to 21.4%.

2017 年《減稅與就業法案》（Tax Cuts and Jobs Act）的通過，導致一次性 GAAP 所得稅費用 1,350 萬美元，或每股 0.31 美元。這項新的稅法也允許 MPS 匯回海外來源的盈餘。這筆一次性費用使我們 2017 年的稅率由 5.1% 提高至 21.4%。

On a non-GAAP basis, full year gross margin of 55.6% expanded 40 basis points from the prior year. Non-GAAP pretax income of $137.9 million grew 32.4% over 2016.

以非 GAAP 基礎計算，2017 年全年毛利率為 55.6%，較前一年擴大 40 個基點。非 GAAP 稅前利益為 1.379 億美元，較 2016 年成長 32.4%。

MPS achieved record full year non-GAAP earnings of $2.93 per share, which was 27.4% higher than 2016.

MPS 全年非 GAAP 每股盈餘創下新高，達到每股 2.93 美元，較 2016 年高出 27.4%。

Switching to Q4. MPS had a record fourth quarter, with revenue of $129.4 million, 24.9% higher than the comparable quarter in 2016 and slightly higher than revenue generated in the prior quarter.

接著看第四季。MPS 第四季創下歷史新高，營收為 1.294 億美元，較 2016 年同期高出 24.9%，也略高於上一季的營收。

Looking at our 2017 over 2016 fourth quarter revenue growth by market segment; automotive, up 57.7%; consumer, up 44.6%; compute and storage, up 14.0%; and industrial, up 6.7%. Fourth quarter revenue for the communications segment fell 7.0% from the prior-year period.

以市場區隔來看，2017 年相較 2016 年第四季的營收成長如下：車用成長 57.7%；消費性成長 44.6%；運算與儲存成長 14.0%；工業成長 6.7%。第四季通訊區隔營收較前一年同期下滑 7.0%。

Fourth quarter GAAP gross margin was 55.0%, matching the prior quarter of 2017 and 50 basis points higher than the fourth quarter of 2016. Our GAAP pretax income was $26.7 million compared to the $25.1 million reported in the prior quarter of 2017 and $18.4 million reported in the fourth quarter of 2016.

第四季 GAAP 毛利率為 55.0%，與 2017 年前一季相同，且較 2016 年第四季高出 50 個基點。我們的 GAAP 稅前收入為 2,670 萬美元，相較於 2017 年前一季報告的 2,510 萬美元，以及 2016 年第四季報告的 1,840 萬美元。

For the fourth quarter of 2017, non-GAAP gross margin was 55.7%, matching the prior quarter of 2017 and 30 basis points higher than the fourth quarter from a year ago. Our non-GAAP pretax income was $39.2 million compared to the $39.5 million reported in the prior quarter and the $29.7 million reported in the fourth quarter of 2016.

2017 年第四季，非 GAAP 毛利率為 55.7%，與 2017 年前一季相同，且較一年前的第四季高出 30 個基點。我們的非 GAAP 稅前收入為 3,920 萬美元，相較於前一季報告的 3,950 萬美元，以及 2016 年第四季報告的 2,970 萬美元。

Let's review our operating expenses. Our GAAP operating expenses were $46.1 million in the fourth quarter compared with $47.0 million in the third quarter of 2017. On a non-GAAP basis, fourth quarter 2017 operating expenses were $33.9 million, $1 million up from the $32.9 million expense in the third quarter, primarily reflecting an increase in R&D, new product spending.

接下來我們回顧營業費用。第四季 GAAP 營業費用為 4,610 萬美元，較 2017 年第三季的 4,700 萬美元下降。以非 GAAP 基礎計，2017 年第四季營業費用為 3,390 萬美元，較第三季的 3,290 萬美元增加 100 萬美元，主要反映研發與新產品投入增加。

Fourth quarter 2017 operating expenses were up $5.5 million from the $28.4 million reported in the fourth quarter of 2016.

2017 年第四季營業費用較 2016 年第四季報告的 2,840 萬美元增加 550 萬美元。

On both a GAAP and a non-GAAP basis, fourth quarter litigation expenses were $340,000. The difference between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are stock compensation expenses and expenses from an unfunded deferred compensation plan.

無論以 GAAP 或非 GAAP 基礎計，第四季訴訟費用為 34 萬美元。此處所討論各季度的非 GAAP 營業費用與 GAAP 營業費用之差異，主要來自股票酬勞費用以及一項未提撥資金之遞延補償計畫的費用。

Stock comp expense was $11.9 million in the fourth quarter of 2017 compared with $14.0 million in the prior quarter of 2017 and $10.7 million in the fourth quarter of 2016.

2017 年第四季股票酬勞費用為 1,190 萬美元，相較於 2017 年前一季的 1,400 萬美元，以及 2016 年第四季的 1,070 萬美元。

Switching to the bottom line. Q4 GAAP net income was $12.1 million or $0.27 per fully diluted share compared with $0.54 per share in the previous quarter of 2017 and $0.39 per share in the fourth quarter of 2016.

接著看最終獲利。第四季 GAAP 淨利為 1,210 萬美元，或每股完全稀釋後 0.27 美元；相較之下，2017 年前一季為每股 0.54 美元，2016 年第四季為每股 0.39 美元。

The current quarter GAAP results included the one-time expense of $13.5 million or $0.31 per fully diluted share resulting from the newly passed tax legislation. Q4 non-GAAP net income was $36.3 million or $0.82 per fully diluted share compared with $0.84 per share in the previous quarter of 2017 and $0.65 per share in the fourth quarter of 2016.

本季 GAAP 結果包含因新通過稅改法案所產生的一次性費用 1,350 萬美元，或每股完全稀釋後 0.31 美元。第四季非 GAAP 淨利為 3,630 萬美元，或每股完全稀釋後 0.82 美元；相較之下，2017 年前一季為每股 0.84 美元，2016 年第四季為每股 0.65 美元。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $304.3 million at the end of the fourth quarter of 2017, $620,000 less than the prior quarter of 2017. For Q4 2017, operating cash flow was $53.4 million, and for the full year 2017, MPS generated operating cash flow of about $133.8 million. Cash proceeds from employees stock option exercises and ESPP were $20,000 in Q4 and $2.9 million for all of 2017.

現在來看資產負債表。截至 2017 年第四季末，現金、約當現金及投資為 3.043 億美元，較 2017 年前一季少 62 萬美元。2017 年第四季營運現金流為 5,340 萬美元；2017 全年，MPS 產生的營運現金流約為 1.338 億美元。員工行使股票選擇權及員工股票購買計畫（ESPP）帶來的現金收入，第四季為 2 萬美元，2017 全年為 290 萬美元。

Q4 2017 capital equipment purchases were $40.7 million, and for the full year were $65.8 million. Dividend payments were $8.7 million for the quarter and $33.9 million for the year. Fourth quarter accounts receivable was $38.0 million or 27 days of sales -- days sales outstanding, which was lower than the 36 days we reported at the end of the prior quarter of 2017. This decrease was due to a higher proportion of the quarter sales being recorded in the first 2 months of Q4 compared with the prior quarter.

2017 年第四季資本設備採購為 4,070 萬美元，全年為 6,580 萬美元。股利支付本季為 870 萬美元，全年為 3,390 萬美元。第四季應收帳款為 3,800 萬美元，或 27 天銷售天數——應收帳款週轉天數（DSO），低於我們在 2017 年前一季末報告的 36 天。此下降係因本季銷售中有較高比例是在第四季前兩個月入帳，相較於前一季。

Fourth quarter 2017 days sales outstanding were 3 days lower than the 30 days posted in the fourth quarter of 2016. Our internal inventories at the end of the fourth quarter of 2017 were $99.3 million, down slightly from the $99.9 million at the end of the prior quarter. Days of inventory decreased from -- to 155 days at the end of Q4 from 156 days at the end of Q3 2017.

2017 年第四季應收帳款週轉天數較 2016 年第四季的 30 天少 3 天。截至 2017 年第四季末，我們的內部存貨為 9,930 萬美元，較前一季末的 9,990 萬美元略降。存貨天數由——在 Q4 期末降至 155 天，較 2017 年 Q3 期末的 156 天下降。

I would now like to turn to our outlook. First and foremost, MPS is announcing a 50% increase in our quarterly dividend from $0.20 per share to $0.30 per share for shareholders of record as of March 30, 2018. During the next year, MPS will look for future opportunities to return value to our shareholders. As of January 1, 2018, MPS adopted ASC 606. This new accounting standard, which modifies the revenue recognition rules will have a minimal impact on our Q1 revenue.

接下來我想談談我們的展望。首先也是最重要的，MPS 宣布將季度股利提高 50%，由每股 0.20 美元提高至每股 0.30 美元，適用於 2018 年 3 月 30 日登記在冊的股東。在接下來一年，MPS 將尋找更多機會把價值回饋給股東。自 2018 年 1 月 1 日起，MPS 採用 ASC 606。此一修訂收入認列規則的新會計準則，對我們第一季營收的影響將非常有限。

Looking at Q1, we are forecasting revenue in the range of $122 million to $128 million. We also expect the following: GAAP gross margin in the range of 54.8% to 55.8%; non-GAAP gross margin in the range of 55.3% to 56.3%; total stock-based compensation expense of $13.9 million to $15.9 million, including approximately $400,000 that will be charged to cost of goods sold; litigation expenses of $250,000 to $350,000; non-GAAP R&D and SG&A expenses to be in the range of $32.1 million to 35.1% million.

就第一季而言，我們預估營收介於 1.22 億至 1.28 億美元。我們也預期如下：GAAP 毛利率介於 54.8% 至 55.8%；非 GAAP 毛利率介於 55.3% 至 56.3%；股票基礎酬勞費用合計介於 1,390 萬至 1,590 萬美元，其中約 40 萬美元將計入銷貨成本；訴訟費用介於 25 萬至 35 萬美元；非 GAAP 研發與銷售、一般及管理（SG&A）費用介於 3,210 萬至 3,510 萬美元。

This estimate excludes stock compensation and litigation expenses. Other income of $600,000 to $700,000 before foreign exchange gains or losses. Fully diluted shares to be in the range of 43.9 to 44.9 million shares. Our tax rate for 2018 is expected to be between 5% and 10% on both a GAAP and a non-GAAP basis.

此估計不包含股票酬勞與訴訟費用。其他收入在未計入外匯損益前為 60 萬至 70 萬美元。完全稀釋後股數預計介於 4,390 萬至 4,490 萬股。我們 2018 年的稅率預期在 GAAP 與非 GAAP 基礎下皆介於 5% 至 10%。

In conclusion, we continue to grow and continue to enhance shareholder value. I'll now open the microphone for questions.

總結來說，我們持續成長，並持續提升股東價值。接下來我將開放提問。

(Operator Instructions) Our first question comes from Quinn Bolton with Needham & Company.

（接線員指示）我們的第一個問題來自 Needham & Company 的 Quinn Bolton。

Michael, Bernie, congratulations on the -- another record year and nice to see the 50% increase in the dividend. Michael or Bernie, just a couple of questions. First on the compute business quarter-to-quarter, it looks like it was down sequentially despite the ramp of Purley. I'm wondering if could give us an update on the Purley ramp and superpower management for you guys? And then, Bernie, it looks like CapEx was up significant in the fourth quarter, can you go into a little bit of detail on what you were spending that CapEx on?

Michael、Bernie，恭喜——又創下另一個創紀錄的年度，也很高興看到股利提高 50%。Michael 或 Bernie，我有幾個問題。首先關於運算（compute）業務的季對季表現，儘管 Purley 正在放量爬坡，看起來仍呈現連續下滑。想請問能否更新一下 Purley 的爬坡進度，以及你們在超級電源管理（superpower management）方面的情況？另外，Bernie，看起來第四季資本支出（CapEx）大幅增加，能否稍微說明一下這些資本支出主要用在什麼項目上？

Sure. Let me start off with your first question as far as what we're observing in compute and storage in the Q3 to Q4. So interestingly, we had very good continuation of growth in our cloud computing, which was closely associated with the server business. And that was offset by declines in both the storage and notebook. So I think that -- versus our expectations internally as far as what the opportunity for servers are, we are tracking at or in fact, a little bit ahead of what -- where we expected to be. And the business that we have to date has been primarily in some of the lower dollar categories, and we expect to see our Intelli-Phase or QSMod side of the business, which is higher dollar, to pick up early in 2018. With regard to the cap spending, we've made some purchases of office space in the quarter, and we picked up 2 offices, one for $25 million and the other for $15 million, and believe that this is a good way to secure capacity at a fixed price that will benefit the -- accretive to earnings over the years to come.

當然。我先從你的第一個問題開始，談談我們在第三季到第四季期間在運算與儲存方面觀察到的情況。有趣的是，我們的雲端運算持續維持非常好的成長，且與伺服器業務密切相關。而這部分的成長被儲存與筆電兩者的下滑所抵銷。因此我認為——相較於我們內部對伺服器機會的預期，我們目前的進度符合，甚至略微超前於我們原先預期的水準。截至目前，我們拿到的業務主要集中在一些單價較低的類別；我們預期單價較高的 Intelli-Phase 或 QSMod 這一側的業務，將在 2018 年初開始回升。至於資本支出方面，我們在本季購置了一些辦公空間，新增了 2 個辦公室，一個 2,500 萬美元、另一個 1,500 萬美元；我們認為這是以固定價格確保產能的好方法，未來多年將帶來效益——對盈餘具有增益（accretive）。

Great. And then, maybe just one, sort of, forward-looking question. As you look into 2018, could you size or maybe rank order for us what you see is perhaps some of the biggest incremental revenue drivers heading into this year?

很好。接著，或許再問一個比較前瞻性的問題。當你們展望 2018 年時，能否幫我們估算或排序一下，你們認為今年最大的新增營收驅動因素可能有哪些？

Sure. I'm going to address this on a percentage basis. And so the dollars maybe a little bit different. But automotive, as I've been saying in the recent past is expected to grow in any quarter-over-quarter between 30% to 60%. And that was consistent with the experience that we had in 2017. So that -- with the design wins and visibility that we have in the long term, we believe that for 2018 and '19 and '20, automotive...

當然。我會用百分比的角度來回答。因此金額可能會有些不同。但汽車業務，如同我最近一直在說的，預期每一季的季增率會在 30% 到 60% 之間。這也與我們在 2017 年的經驗一致。因此——基於我們取得的設計導入（design wins）以及長期能見度，我們相信在 2018、'19、'20 年，汽車……

Well, the growth on each market segment, there is going to be -- if you look at our last 2 or 3 years, and if you're looking to forward, okay? And that's just a plus or minus of fewer percentage on the each market segments. And the trend will be very similar to 2018 and 2019, 2020, that's as far we see, is a pretty much all set. The percentage is just only a few percentage change.

嗯，各個市場區隔的成長，如果你看我們過去 2 到 3 年，再往前看，好嗎？各市場區隔的成長率大概只會有正負幾個百分點的差異。而趨勢會非常類似於 2018、2019、2020 年；就我們目前所見，基本上都已經相當明確。百分比只會有少數幾個百分點的變化。

Our next question comes from William Stein with SunTrust.

下一個問題來自 SunTrust 的 William Stein。

This is Joe on for Will. Nice quarter. I'm just wondering if you guys had an update on the web-based e-commerce analog for the masses project?

我是 Joe，代替 Will 提問。本季表現不錯。我想請問你們是否有關於「面向大眾的、以網路為基礎的電商類比」這個專案的最新進度？

Well, (inaudible) it's delayed again. I promised in January, it didn't happen (inaudible) . I think that we rather have a very good user experience to launch it first and rather than at the mediocre ones. And so I made a very hard decision not to do it and not to launch it. And you will see probably in a -- now I don't have credibility on that. I postponed it several times already. Look, I promised, I postponed it several times and hopefully it will be in Q2.

嗯，（聽不清）又延後了。我在一月承諾過，但沒有發生（聽不清）。我想我們寧可先推出一個非常好的使用者體驗，而不是勉強推出一個普通的版本。所以我做了一個非常艱難的決定：先不做、也不推出。你們可能會在——現在我對這件事也沒什麼公信力了。我已經延後好幾次了。你看，我承諾過、也延後過好幾次，希望會在第二季。

Just to add to that. I think that Michael has a lot of credibility, typically when you look at the results we turned in 2017 and going forward. And that secondary point...

補充一下。我認為 Michael 其實很有公信力，通常你看我們在 2017 年交出的成果，以及未來的表現。而第二點……

Well, this is one area I (expletive) it up.

嗯，這一塊是我把它（髒話）搞砸了。

Well, that's honest. We will manage that in the transcript. The expectations set as far as 0 revenue generation is a result of e-commerce in 2018 and 2019. So to the extent that we have a successful launch and we're able to incorporate customer feedback into making quick adaptations of that platform, I think it's time well spent.

嗯，這很坦白。我們會在逐字稿裡處理這段。就預期而言，2018 與 2019 年電商帶來的營收貢獻為 0。因此，只要我們能成功上線，並把客戶回饋納入，快速調整這個平台，我認為這些時間花得值得。

But on the other (inaudible) I do emphasize that's the direction we're really going. And that doesn't -- the delay doesn't cause any doubt. And as a matter of fact, all the -- the testings that can be -- without the website, is doing really, really well. And we in the last few months, every months we increase 600, 700 customers, and those customers we never know of even.

但另一方面（聽不清），我確實要強調這就是我們真正要走的方向。而這次延後並不會造成任何疑慮。事實上，所有在沒有網站的情況下也能做的——那些測試——都進行得非常、非常好。而且在過去幾個月，我們每個月都增加 600、700 位客戶，而那些客戶我們以前甚至都不知道。

No marketing, just coming over to transom.

沒有行銷，就自己跑到 transom 來。

That's right. Yes. And so the trainings even I can't imagine with our own website and that these -- with these -- acquired the customers from our distributors and from other sites. And I can't imagine from our own site, the marketings and other effort we were putting in and it will be a phenomenal growth.

沒錯。是的。所以這樣的成長我甚至無法想像：如果有我們自己的網站，再加上——這些——從經銷商與其他網站取得的客戶。我更無法想像若是從我們自己的網站來，再配合我們投入的行銷與其他努力，成長會非常驚人。

It's really helpful detail. Just as a follow-up, if you could give any update on customer order patterns, are you getting any sense for double ordering given the strength of the revenue growth?

這些細節很有幫助。追問一下，若可以的話，能否更新一下客戶下單模式？在營收成長強勁的情況下，你們是否感覺到有重複下單（double ordering）的現象？

Yes, it's a concern that we had going into Q4 because we had very high level of backlog compared to what historical norms have been. And going into Q1, that has remained also on the high side. And what we're very conscious of is that we don't want to either participate in double ordering or where we're selling demand or that the inventories is just going to sit in the channel. And as a result, we've been very cautious as far as meeting customer demands that we believe are in excess of what they need to keep their facilities going. So in the end of Q4, I think we did a very good job because we were able to generate the revenue we did and we did not increase the days in the channel.

是的，這是我們在進入第四季時的疑慮，因為相較於過往常態，我們的未交訂單（backlog）水位非常高。而進入第一季後，這個水位也仍然偏高。我們非常注意的是：我們不希望參與重複下單，也不希望我們賣出去的其實是「被拉動的需求」，或讓庫存只是堆在通路裡。因此，對於我們認為超出客戶維持其產線運作所需的那部分需求，我們在供貨上一直非常謹慎。所以在第四季末，我認為我們做得很好，因為我們在創造營收的同時，並沒有增加通路天數（days in the channel）。

Our next question comes from Ross Seymore with Deutsche Bank.

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

This is Jeriel on behalf of Ross. So I just want to get some clarity on your tax rates. Some peers in the semi industry who reported so far that presently pay higher taxes than you and who reported an increase in their tax -- ongoing tax rate going forward. So with your 7.5% rate, it appears you guys are guiding to a rate that's flat, I assume on an ongoing basis. Could you walk me through how you guys arrived with your tax guidance?

我是 Jeriel，代表 Ross 提問。我想釐清一下你們的稅率。目前為止，一些已經公布財報的半導體同業，現行稅負比你們高，但他們也提到未來的——持續性——稅率會上升。以你們 7.5% 的稅率來看，似乎你們指引的是稅率持平，我假設是以持續性基礎來看。你能否說明一下你們是如何得出這個稅率指引的？

Well, if you look it -- and thanks for our last year effort, we bought a lot of buildings. These are tax free.

嗯，如果你看一下——也要感謝我們去年一整年的努力，我們買了很多棟建築物。這些是免稅的。

Let me try and clarify that. So there are 2 components to the tax, you have the transition of the toll tax, which we recorded in Q4. That's what Michael is referring to. Because we've invested in a lot of property, we actually had a lower blended tax rate that we had to pay there. Going forward, as far as how we can guide to the 5% to 10% rate, there is a step-up as far as the GILTI tax, but we have some discrete items that can offset that. And so as a result, for 2018, you won't see a change in our tax rate from what we reported in the current year.

我來試著釐清一下。所以稅務有兩個組成部分：你有一次性的過渡稅（toll tax），我們在第四季入帳了。這就是 Michael 所指的部分。因為我們投資了很多不動產，實際上我們在那部分需要支付的加權平均稅率較低。往前看，至於我們如何指引 5% 到 10% 的稅率，GILTI 稅會有一個上調，但我們有一些一次性項目可以抵銷它。因此，2018 年你不會看到我們的稅率相較於本年度所報告的有任何變化。

Got it. That's really helpful. And I think next question I guess, switching over to automotive, it was really strong in 4Q and strong in 2017 in general north of (inaudible) growth rate. What's driving that strength from like maybe its infotainment or lighting, et cetera, perspective, and (inaudible) at this rate in 2018?

了解。這真的很有幫助。我想下一個問題，切換到汽車領域，第四季表現非常強勁，而 2017 年整體也很強，成長率在（聽不清）以上。從資訊娛樂或照明等角度來看，是什麼在驅動這股強勁動能？以及（聽不清）在 2018 年是否能維持這樣的速度？

Yes, it is fair that the growth rate it will not change much. Okay, but don't quote me exactly what's the rate. It would be very similar to this year. Which applications or which segments, I think in the next couple of years we're going to expand lot more segments. Now the lighting, infotainments and the safeties, and we will have a lot more safety products come out. And as Bernie said in his script, we have an ADAS and also the battery management as well as the connectivities. And those areas have a very little revenue or some of the items have no revenue, only sampling. And we expect to have a very high percentage growth in -- a very dollar amount growth in 2019, '20 and '21.

是的，可以說成長率不會有太大變化。好，但不要精確引用我說的具體比率。它會和今年非常相近。至於哪些應用或哪些區隔，我想未來幾年我們會擴展到更多區隔。目前包括照明、資訊娛樂與安全，我們也會推出更多安全產品。而且如 Bernie 在講稿中提到的，我們有 ADAS，也有電池管理以及連線相關產品。這些領域目前營收很少，或有些項目還沒有營收，只有送樣。我們預期在 2019、2020 和 2021 年會有非常高的百分比成長——也會有非常可觀的金額成長。

And to add one more point is that, we're getting good penetration in all the major geographies known for automotive.

再補充一點，我們在所有主要的汽車重點地區都取得了良好的滲透率。

All right. And if I could squeeze one last in, just a clarity on the CapEx spend. You mentioned it was office space, so is this -- this is of more capacity to manufacture goods or there's is some office space for workers? I'm trying to...

好的。如果我可以再塞最後一個問題，就是釐清一下資本支出（CapEx）。你提到是辦公空間，所以這是——這是為了增加製造產品的產能，還是有一些是給員工的辦公空間？我想確認一下……

Well, I think it's everything. Everything for the factories and for engineering facility, for automotive, quality control systems and everything.

嗯，我想是全部都有。工廠、工程設施、汽車相關、品質控制系統等等，全部都包含。

And down the road software as well. Software design.

以及未來的軟體部分。軟體設計。

(Operator Instructions) Our next question comes from Tore Svanberg with Stifel, Nicolaus.

(接線員指示) 我們的下一個問題來自 Stifel, Nicolaus 的 Tore Svanberg。

This is actually Jeremy calling in for Tore. Let me add my congratulations again to you, another great quarter. Just I want to follow-up briefly on the automotive segment. You mentioned connectivity. Can you give us a little bit more detail on what this piece is? Is it USB-type stuff? Or is it serialing-type stuff?

其實我是 Jeremy，代 Tore 來提問。我再一次向你們致上祝賀，又是一個很棒的季度。我想簡短追問一下汽車業務。你提到「連線」。能否再多給我們一點細節，這一塊具體是什麼？是 USB 類的東西嗎？還是序列（serial）類的東西？

Michael, on the connectivity.

Michael，關於連線這部分。

Which one? The automotive?

哪一個？汽車的？

Yes, go ahead.

對，請說。

Pushing up here. Could you repeat the question, I was looking at a lot of people.

我這邊先接上來。你可以重複一下問題嗎？我剛剛在看很多人。

Just wanted a little bit more insight into what's the connectivity portion of this business was related to you?

只是想更深入了解一下，對你們而言，這項業務中的「連線」部分是指什麼？

Yes, sorry, I didn't -- wasn't paying attention. The connectivity for the car and a lot of ADAS and a lot of safety things, okay? And safety cameras such as the cameras (inaudible) and these all will be connected to the cloud. And those are the areas we really focused on it and those are our customers' requirements.

是的，抱歉，我剛剛——沒有注意聽。連線是用在車上，以及很多 ADAS 和很多安全相關的東西，好嗎？還有安全攝影機，例如那些攝影機（聽不清），而這些都會連到雲端。這些就是我們真正聚焦的領域，也符合我們客戶的需求。

So it's more of a car to infrastructure or car to cloud kind of connectivity versus an in-car connectivity system?

所以這比較像是車聯基礎設施或車聯雲端的連線，而不是車內的連線系統？

Actually both. In the in-car, the connectivities are between the (inaudible) all these sensors to the control units, and the control units to the cloud. And these are all add up to all this self-learning capability. And that's the area we're really focused on it and that's the way we receive a huge requirements and for joint development with these larger automotive companies.

其實兩者都有。在車內，連線是在（聽不清）這些感測器與控制單元之間，以及控制單元到雲端之間。而這些加總起來就形成整體的自我學習能力。這是我們真正聚焦的方向，也是我們收到大量需求、並與大型車廠進行共同開發的領域。

Great. That's very helpful. Second question, in terms of your industrial market, can you give us an update in terms of how e.Motion is doing and how you're penetrating that and also with medical?

很好。這非常有幫助。第二個問題，關於你們的工業市場，能否更新一下 e.Motion 的進展、你們如何提升滲透率，以及醫療方面的情況？

Yes, the emotional -- it's not emotional, e.Motion product lines, in the past and there's other people asking me, okay, the product didn't do well and actually it's doing really well. This year, we will generate somewhere between $8 million to $12 million business. And we develop the new product, the integrated -- fully integrated the modules and we received how many requests, is beyond my belief, actually. And those ones that will do well in the 2018 and '19, particularly.

是的，e.Motion——不是 emotional，是 e.Motion 產品線。過去也有人問我，好嗎，說這個產品做得不好，但其實它做得非常好。今年我們將創造大約 800 萬到 1,200 萬美元的業務。而且我們開發了新產品，也就是整合式——完全整合的模組，我們收到的需求數量多到超乎我的想像，真的。而這些產品在 2018 年和 2019 年會表現得很好，尤其如此。

Okay. And just one question, on the longer term on the outlook, you've done obviously very well using your -- leveraging your process expansion both in markets and applications. As we look out 3 to 5-plus years, can you still -- is there something that you can still ride do you intend to invest in maybe adjacent processes or something completely new?

好的。再一個問題，關於較長期的展望，你們顯然透過製程擴張，在市場與應用上都做得非常好。當我們看未來 3 到 5 年甚至更久，你們是否仍有可以持續乘勢而上的方向？你們是否打算投資於相鄰的製程，或是完全新的東西？

Well, that's a good question. As we said, in the last conference call, we move -- we started with 2 12-inch wafer fab. So we migrated from a 6-inch, 8-inch, now the 12-inch. And on the each upgrade, we add a lot more new features. And so you can think about it, okay, now we can integrate microcontrollers and is not inconceivable, we even put a Wi-Fi system on it.

嗯，這是個好問題。如同我們在上一通電話會議所說，我們——我們一開始有兩座 12 吋晶圓廠。所以我們從 6 吋、8 吋一路遷移到現在的 12 吋。而每一次升級，我們都會加入更多新功能。所以你可以這樣想：現在我們可以整合微控制器，而且也不是不可想像，我們甚至可以把 Wi‑Fi 系統也放上去。

We do have a follow-up question from William Stein with SunTrust.

我們確實有一個後續問題，來自 SunTrust 的 William Stein。

Just on 2018, given that you're guiding for 25% growth in Q1, and given like the multiple growth drivers you have coming on Purley, gaming, notebooks, is there any reason we shouldn't think that calendar '18 can grow in the low 20% range year-over-year?

就 2018 年而言，鑑於你們指引第一季成長 25%，以及你們在 Purley、遊戲、筆電等多重成長動能陸續到位，有沒有任何理由讓我們不應該認為 2018 年曆年營收可以年增落在 20% 出頭的區間？

We don't offer specific guidance for -- beyond one quarter. But the way I can respond to it is that we have been promoting our strategic business model now for about last 4 years. And if you look at 2017, we had revenue growth of 20% (inaudible) 21%, which was a little better than our model. We had gross margin that increased at 40 basis points for the full year, which was consistent with our margin -- with our model. And our operating expenses came in between 50% and 60% of what our revenue growth was. And I think what we've done is, we've achieved the model and expect to continue along that line. The one thing that will offer just some concern is that there are risk factors associated with introducing new products to new customers and particularly, in what is becoming a sort of a more clouded longer-term outlook as far as what the economy is going to do. So we tend to believe that we're capable of achieving our model, but I add just cautionary note that there are risk factors and so you might build in a little bit of a cushion when looking at what full year outlook might be.

我們不提供超過單一季度的具體指引。但我可以這樣回應：我們推動我們的策略性商業模式大約已經 4 年了。如果你看 2017 年，我們的營收成長 20%（聽不清）21%，比我們的模型稍微好一些。我們全年毛利率提升了 40 個基點，這與我們的毛利率——與我們的模型一致。而我們的營業費用落在我們營收成長的 50% 到 60% 之間。我認為我們所做的是：我們已經達成該模型，並預期會持續沿著這條路走。唯一需要提出一些疑慮的是：將新產品導入新客戶會伴隨風險因素，尤其是在對經濟走向而言，長期展望正變得更為不明朗的情況下。因此我們傾向相信我們有能力達成我們的模型，但我也補充一點提醒：存在風險因素，所以在評估全年展望可能如何時，你或許要多留一點緩衝。

Let me comment on your question. In early 2005, 2006, we had a model like a 20% to 30%, and we never achieved that. We achieved close to 18%, 19% in between 15% to 20%. And I was very criticized by the -- some of the shareholders and I spend too much money is not grow enough. Okay, as I can't figure out there's a 20% or not 20%. In 2006 -- 2016 in the first quarter's and I made announcements -- I mean -- or some people asked me are we going to achieve the models. I said that okay, it will be 2017, and we did it, okay. Now since you ask for this year, again, I think I can't predict in a couple of percentage difference. But we will grow double or triple than the industrial growth. If the industrial growth is negative 5%, okay, we'll be 3 times -- we will grow from somewhere 10% to 15% range.

我來評論一下你的問題。在 2005、2006 年初，我們有一個像是 20% 到 30% 的模型，但我們從未達成。我們達到接近 18%、19%，大概在 15% 到 20% 之間。我因此受到——一些股東——很多批評，說我花太多錢但成長不夠。好吧，我也搞不清楚到底是 20% 還是不是 20%。在 2006——2016 年第一季，我做了公告——我是說——或是有人問我我們是否會達成模型。我說好吧，會在 2017 年，而我們做到了，好。現在既然你問今年，同樣地，我想我無法預測差個幾個百分點。但我們會以產業成長的兩倍或三倍速度成長。如果產業成長是負 5%，好，那我們會是 3 倍——我們會成長在大約 10% 到 15% 的區間。

And that's if the industry grows 5%, that we will grow 10% to 15%.

而如果產業成長 5%，那我們會成長 10% 到 15%。

Yes, I got it. And just a housekeeping question, are you guys having an analyst day this year?

是的，我明白了。再一個例行問題，你們今年會舉辦分析師日嗎？

We are planning on it, but we haven't announced the date yet.

我們正在規劃，但尚未公布日期。

Yes, we were planning to and because our website (expletive) up, so we delayed it.

是的，我們原本打算要辦，但因為我們的網站（髒話）出問題，所以我們延後了。

We have another question from John Vinh with KeyBanc Capital.

我們還有一個問題，來自 KeyBanc Capital 的 John Vinh。

Bernie, last year you came in at the high end of kind of OpEx as a percentage of sales growth, I think at high-end of the 60% range. What's your sense in terms of how we should be thinking about OpEx growth this year as a percentage of sales? You've got a 50% to 60% model. Could we get a little bit more leverage and be at the lower end of the range or how should we be thinking about that?

Bernie，去年你們的營業費用（OpEx）相對於銷售成長的比例落在區間高端，我想是在 60% 區間的高端。你對於今年我們應該如何看待 OpEx 成長占銷售的比例，有什麼看法？你們的模型是 50% 到 60%。我們是否可能獲得更多營運槓桿、落在區間低端？或我們應該怎麼思考？

When I say the 50% to 60% range, that's really focused on R&D and SG&A, and does not include litigation, which can be a little hard to manage. So for 2017, my calculations show this for the full year being at 58% of our revenue growth rate. When you look ahead here, I think we've got 3 drivers that we're going to invest in. Automotive in particular, we want to continue to fuel that revenue growth through sales and marketing as well as a QA and some -- also some R&D specific to it. On top of that, Michael also mentioned to you, as far as our investment in 12-inch fabs, that's going to be continuing for about 5 to 6 quarters beginning in Q2 -- beginning in earnest in Q2. And then finally, with the launch of the website in the e-commerce platform, we're going to make a big investment in marketing to be able to really launch that successfully and get the word out. So I think that in that instance, and I don't have a firm number yet, but we want to be able to strike and make these investments and that will put us at a minimum with the high-end of that range.

當我說 50% 到 60% 的區間時，那其實主要聚焦在研發（R&D）與銷售、一般及行政（SG&A），不包含訴訟費用，因為那比較難管理。所以就 2017 年而言，我的計算顯示全年約為我們營收成長率的 58%。往前看，我認為我們有 3 個驅動因素要投資。特別是在車用領域，我們希望透過銷售與行銷，以及品保（QA）和一些——也包括一些針對性的研發，持續推動該營收成長。此外，Michael 也提到我們對 12 吋晶圓廠的投資，將從第二季開始——在第二季正式加速——並持續約 5 到 6 個季度。最後，隨著網站與電商平台上線，我們將在行銷上做一筆大投資，以便真正成功推出並把訊息傳出去。所以我認為在那種情況下，我目前還沒有一個確切數字，但我們希望能夠把握時機進行這些投資，而這至少會讓我們落在該區間的高端。

Yes. But Bernie is talking about a lot of investments. But if you look in our history, we never have a wide spending. And we will -- if we spend, we spend a couple of more percent. That will be it. And we don't have a wide, which has open pocket spending. We never happened in the entire MPS history. So the 50% -- 60% to 61%, 62%, that's probably I don't see we go beyond that.

是的。但 Bernie 談到很多投資。不過如果你看我們的歷史，我們從來沒有大手筆花錢。而我們會——如果要花，也就多花幾個百分點。就這樣而已。我們不會那種大開口袋、毫無節制的花費。在整個 MPS 的歷史上從未發生過。所以 50%——60% 到 61%、62%，我大概不認為我們會超過那個水準。

Great. And then my follow-up is just on growth question. I know you guys are trying to avoid guidance specific -- to a specific number for '18 again, but if I think about the computing segment, you've got kind of uplift to higher ASPs in QSMod and then you get the full year's benefit of the Purley ramp. And then on consumer, you've got obviously the full benefit of a full year's worth of a gaming console ramp where you've kind of increased your market share. Is there any reason to think that the growth rates of these 2 segments could be positively bias, slightly higher in 2018 versus '17?

很好。那我的追問是關於成長問題。我知道你們想避免對 2018 年給出特定數字的指引，但如果我看運算（computing）部門，你們在 QSMod 有 ASP（平均售價）上升的帶動，並且你們也能享有 Purley 放量爬坡的全年效益。而在消費性（consumer）方面，你們顯然也能享有遊戲主機放量爬坡的全年效益，且你們的市占率有所提升。有沒有任何理由認為，這兩個部門在 2018 年的成長率可能會呈現正向偏差、比 2017 年略高？

I think Michael did a good job of responding to that saying that, if you look at the growth profile of '17 and plus or minus a couple of percentage points off of what we enjoyed there, that's pretty much what we're expecting for '18 as well.

我認為 Michael 回應得很好：如果你看 2017 年的成長輪廓，並在我們當時的表現上下加減幾個百分點，那大致就是我們對 2018 年的預期。

Well, in the gaming, and I can't openly say it. It's not my favorite topics. And it goes up by a quarter a lot, and then the next couple of quarters it comes down. And I want to manage a very, very smooth growth and then comes sustainable growth. And so these things you mentioned about gaming, of course, there is a lot of dollars to be made. And these are very opportunistics, so that's why we said, we have a few percentage variation.

嗯，關於遊戲領域，而且我不能公開說。這不是我最喜歡談的主題。它常常會先上升四分之一，然後接下來幾個季度又下來。而我想要管理的是非常、非常平滑的成長，然後才是可持續的成長。所以你提到的這些關於遊戲的事情，當然，有很多錢可以賺。而這些都非常機會導向，所以這就是為什麼我們說，我們會有幾個百分點的波動。

But on the gaming, I think, it's very important to offer that we're fully committed to the gaming platforms, and -- but there are limited opportunities for growth. And so we have to be able to make sure that the market understands that we're positioned for the long term there, and to be able to enjoy the benefits of future design wins to help accelerate that growth.

但在遊戲方面，我認為非常重要的是要讓大家知道我們對遊戲平台是完全投入的，並且——但成長機會是有限的。因此我們必須確保市場理解我們在那裡是以長期為定位，並且能夠享受未來設計導入（design wins）所帶來的好處，以幫助加速那個成長。

Our next question comes from David Wong with Wells Fargo.

我們的下一個問題來自富國銀行（Wells Fargo）的 David Wong。

This is a Amit Chandra dialing in for David. Bernie, for the December quarter, could you share with us what percentage of your cash flows are onshore versus offshore? And should we expect the majority of offshore cash to be brought back to the U.S. post tax reform? And what are your priorities for uses of cash in 2018?

我是 Amit Chandra，代替 David 撥入。Bernie，針對 12 月季度，你能和我們分享一下你們的現金流有多少比例是在岸（onshore）與離岸（offshore）嗎？而在稅改之後，我們是否應該預期大部分離岸現金會匯回美國？以及你們在 2018 年的用現金優先順序是什麼？

So at the end of the year, we had about 40% of our cash is onshore, 60% was offshore. We are continuing to evaluate what the impact of the new tax reform means for us. We took an initial step by increasing the dividend this quarter, and we're going to use the remainder of this year to consider other opportunities where we can increase shareholder value either through dividends or acquisitions or perhaps even a stock buyback. But right now, we haven't firmed up any specific plans around that.

所以在年底，我們大約有 40% 的現金是在岸，60% 在離岸。我們仍在持續評估新的稅改對我們意味著什麼影響。我們先採取了一個初步步驟，在本季度提高了股利，接下來我們會利用今年剩餘時間來考慮其他能提升股東價值的機會，可能是透過股利或併購，或甚至股票回購。但目前我們還沒有就此確定任何具體計畫。

Okay, great. And then as a follow-up, in your high-end notebook business, can you maybe talk about the product cycles that you expect that are upcoming in 2018 to drive that business higher?

好的，很好。接著追問一下，在你們的高階筆電業務方面，你能否談談你們預期 2018 年即將到來、可推動該業務走高的產品週期？

Yes, I'd say that the notebook business and a lot of that has to do with customer adoption. And we have a couple of very good prospects that we've been designed in with. And we're looking at various scenarios as far as what the timing and the unit volumes could be. One of the things that you may be aware of is that Canyon Lake was canceled and that the next opportunity for a new design will be, I believe it's called Whiskey Lake, which is supposed to be in mid-2019. So I think we feel very, very well positioned there. We have very good new adoptions that are occurring right now, but that the product cycle from Intel got moved out by a year.

是的，我會說筆電業務很大一部分取決於客戶採用。我們有幾個非常好的潛在案子，已經被納入設計（designed in）。我們正在就時程與出貨量可能性評估各種情境。你可能知道 Canyon Lake 已被取消，而下一個新設計的機會，我相信叫做 Whiskey Lake，預計在 2019 年年中。所以我認為我們在那裡的布局非常、非常到位。我們目前正出現非常好的新採用，但 Intel 的產品週期被往後延了一年。

Well, since you mentioned notebook, notebook is not my favorite either. And these are kind of low-margin but the way Bernie emphasize high value notebooks. And those are generally they sell like a retailing price like a $1,200 or $1,300 above. And some of the models they pay it. And so they appreciate our technology. Those are products that we deliver.

嗯，既然你提到筆電，筆電也不是我最喜歡的。這些算是低毛利，但如 Bernie 強調的是高價值筆電。而那類產品通常零售價格大概在 1,200 或 1,300 美元以上。有些機型他們願意付這個價。所以他們很欣賞我們的技術。這些就是我們所交付的產品。

We want to go after.

我們想要去爭取的。

Yes.

是的。

Okay. And then one final one for me, for your E-Fuse opportunities, can you talk about that in 2018?

好的。最後一個問題，關於你們的 E-Fuse 機會，你能談談 2018 年的情況嗎？

Sure. E-Fuse tends to be lower dollar content, but what they've been very helpful for us is being able to open the door for opportunities that we haven't else wise had.

當然。E-Fuse 通常單位金額較低，但它對我們非常有幫助的一點是，能為我們打開一些原本不太容易取得的機會之門。

Are you talking about a server area or talking about all area?

你是在談伺服器領域，還是談所有領域？

Broadly.

廣泛來說。

Yes, broadly speaking.

是的，廣泛來說。

Server area is MPS become a single source and adoption in some very large customers. And our product now is realized, just start to realize by all the large first tier server makers. And those are not small low dollar, very high margins. And what we are more excited about in order. In the -- the train is to replace the blowup fuse and the use of – use an electronic fuse, that's where the MPS opportunity is.

在伺服器領域，MPS 已成為單一來源（single source），並在一些非常大型的客戶中被採用。而我們的產品現在正被所有大型一線伺服器製造商所認可，並開始採用。而那些不是小額、低單價的案子，而是高毛利。這也是我們更感到興奮的地方。趨勢是要取代爆破式保險絲（blowup fuse），改用——使用電子保險絲，這就是 MPS 的機會所在。

There is also an opportunity in the communications networking as well and that should start to roll out here at the end of 2018.

在通訊網路領域也有機會，而且應該會在 2018 年底開始推展。

I show no further questions. Thank you. So I'd like to turn the conference back over to Mr. Blegen for closing remarks.

我沒有其他問題了。謝謝。那我想把電話會議交回給 Blegen 先生做結語。

Thank you very much. So thank you for joining us on the conference call. And I look forward to talking to you again during our first quarter conference call, which is likely to be at the end of April. Thank you, and have nice day.

非常感謝。感謝各位參加我們的電話會議。我期待在我們第一季的電話會議再與各位交流，時間可能會在四月底。謝謝，祝各位有美好的一天。

Thank you. Ladies and gentlemen, that does conclude today's conference. Thank you very much for your participation. You may all disconnect. Have a wonderful day.

謝謝。各位女士先生，今天的會議到此結束。非常感謝各位的參與。各位現在可以掛線。祝各位有美好的一天。