芯源系統 (MPWR) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems, Inc., Q1 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

各位女士、先生，大家好，歡迎參加 Monolithic Power Systems, Inc. 2018 年第一季財報電話會議。(接線員指示) 提醒各位，本次會議將被錄音。

I would now like to introduce your host for today's conference, Bernie Blegen, Chief Financial Officer. You may begin.

現在我想介紹今天會議的主持人，Bernie Blegen，財務長。您可以開始了。

Great. Thank you. Good afternoon, and welcome to the First Quarter 2018 Monolithic Power Systems Conference Call. Michael Hsing, CEO and Founder of MPS, is with me on today's call.

很好。謝謝。各位下午好，歡迎參加 Monolithic Power Systems 2018 年第一季電話會議。MPS 的執行長兼創辦人 Michael Hsing 也與我一同出席今天的電話會議。

In the course of today's conference call, we will make forward-looking statements and projections that involve risk and uncertainty, which could cause results to differ materially from management's current views and expectations. Please refer to the safe harbor statement contained in the earnings release published today. Risks, uncertainties and other factors that could cause actual results to differ are identified in the safe harbor statements contained in the Q1 earnings release and in our SEC filings, including our Form 10-K filed on March 1, 2018, which is accessible through our website, www.monolithicpower.com.

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，已在第一季財報新聞稿及我們向 SEC 提交的文件中的安全港聲明中列示，包括我們於 2018 年 3 月 1 日提交的 Form 10-K，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'll be discussing gross margin, operating expense, R&D and SG&A expense, operating income, interest and other income, net income, and earnings on both a GAAP and a non-GAAP basis. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP.

MPS 不承擔更新今日電話會議所提供資訊的任何義務。我們將同時以 GAAP 與非 GAAP 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、利息及其他收入、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。

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 2017, Q4 2017 and Q1 2018 releases as well as to the reconciling tables that are posted on our website.

我們的財報新聞稿（已向 SEC 提交）中包含一份表格，說明非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節。我建議投資人參閱 2017 年第一季、2017 年第四季及 2018 年第一季的新聞稿，以及我們網站上公布的調節表。

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 1 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，並將在我們網站上提供 1 年的重播，同時也會提供今日稍早向 SEC 提交的財報新聞稿。

MPS had yet another record first quarter with revenue of $129.2 million, 28.7% higher than the comparable quarter in 2017. MPS continues to benefit from our technology leadership and diversified multimarket strategy.

MPS 再次創下第一季營收新高，營收達 1.292 億美元，較 2017 年同期高出 28.7%。MPS 持續受惠於我們的技術領先地位與多元化的多市場策略。

Looking at our revenue by market. Compared with the first quarter of 2017, revenue from consumer markets increased $11.5 million or 32.4%. The year-over-year revenue increase reflected solid improvements in high-value consumer markets, including home appliances, power chargers and lighting as well as increases in certain traditional consumer revenue categories. Consumer revenue of $47.1 million represented 36.5% of our Q1 revenue.

接著看我們按市場別的營收。與 2017 年第一季相比，消費市場營收增加 1,150 萬美元，或 32.4%。年增的營收反映高價值消費市場的穩健改善，包括家電、電源充電器與照明，同時某些傳統消費類別的營收亦有所增加。消費市場營收為 4,710 萬美元，占我們第一季營收的 36.5%。

In our computing and storage market, revenue of $31.0 million increased $10.4 million or 50.2% year-over-year, reflecting strong sales growth for cloud computing, SSD storage and high-end notebooks. Computing and storage revenue represented 24.0% of MPS' first quarter 2018 revenue.

在運算與儲存市場方面，營收為 3,100 萬美元，年增 1,040 萬美元或 50.2%，反映雲端運算、SSD 儲存與高階筆電的銷售強勁成長。運算與儲存市場營收占 MPS 2018 年第一季營收的 24.0%。

First quarter 2018 automotive revenue of $17.7 million grew 43.8% over the same period of 2017. This growth primarily represented increased sales of infotainment, safety and connectivity application products. Automotive revenue represented 13.7% of MPS' first quarter 2018 revenue.

2018 年第一季汽車市場營收為 1,770 萬美元，較 2017 年同期成長 43.8%。此成長主要來自資訊娛樂、安全與連網應用產品的銷售增加。汽車市場營收占 MPS 2018 年第一季營收的 13.7%。

First quarter 2018 industrial revenue of $17.6 million increased 14.3% from the first quarter of 2017, reflecting gains in smart meters, security and power sources. Industrial revenue accounted for 13.6% of our total first quarter revenue.

2018 年第一季工業市場營收為 1,760 萬美元，較 2017 年第一季增加 14.3%，反映智慧電表、安防與電源等領域的成長。工業市場營收占我們第一季總營收的 13.6%。

In Q1, MPS adopted the revenue recognition standard generally referred to as Topic 606. Its adoption had a negligible impact on Q1 revenue.

在第一季，MPS 採用了通常稱為 Topic 606 的收入認列準則。其採用對第一季營收的影響可忽略不計。

GAAP gross margin was 55.4%, 40 basis points higher than the fourth quarter of 2017 and 80 basis points higher than the first quarter of 2017. Our GAAP operating income was $22.0 million compared to $13.6 million reported in the first quarter of 2017.

GAAP 毛利率為 55.4%，較 2017 年第四季高 40 個基點，較 2017 年第一季高 80 個基點。我們的 GAAP 營業利益為 2,200 萬美元，相較於 2017 年第一季的 1,360 萬美元。

For the first quarter of 2018, non-GAAP gross margin was 55.9%, 20 basis points higher than the fourth quarter 2017 and 40 basis points higher than the first quarter of 2017. Our non-GAAP operating income was $37.2 million compared to $26.5 million reported in the first quarter of 2017.

2018 年第一季非 GAAP 毛利率為 55.9%，較 2017 年第四季高 20 個基點，較 2017 年第一季高 40 個基點。我們的非 GAAP 營業利益為 3,720 萬美元，相較於 2017 年第一季的 2,650 萬美元。

Let's review our operating expenses. Our GAAP operating expenses were $49.5 million in the first quarter of 2018 compared with $41.3 million in the first quarter of 2017. Our non-GAAP first quarter 2018 operating expenses were $35.0 million, up from the $29.2 million reported in the first quarter of 2017.

接著檢視我們的營業費用。2018 年第一季 GAAP 營業費用為 4,950 萬美元，相較於 2017 年第一季的 4,130 萬美元。2018 年第一季非 GAAP 營業費用為 3,500 萬美元，高於 2017 年第一季的 2,920 萬美元。

The differences between non-GAAP operating expenses and GAAP operating expenses to the quarters discussed here are stock compensation expense and income or loss on an unfunded deferred compensation plan. For the first quarter of 2018, total stock compensation expense, including approximately $433,000 charged to cost of goods sold, was $15.0 million compared with $11.7 million recorded in the first quarter of 2017.

此處所討論各季度中，非 GAAP 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。2018 年第一季股票酬勞費用總額為 1,500 萬美元（其中約 43.3 萬美元計入銷貨成本），相較於 2017 年第一季認列的 1,170 萬美元。

Switching to the bottom line. First quarter 2018 GAAP net income was $21.9 million or $0.49 per fully diluted share compared with $0.33 per share in the first quarter of 2017. First quarter 2018 non-GAAP net income was $35.0 million or $0.79 per fully diluted share compared with $0.58 per share in the first quarter of 2017. Fully diluted shares outstanding at the end of Q1 2018 were 44.3 million.

接著看最終獲利。2018 年第一季 GAAP 淨利為 2,190 萬美元，或完全稀釋後每股 0.49 美元，相較於 2017 年第一季每股 0.33 美元。2018 年第一季非 GAAP 淨利為 3,500 萬美元，或完全稀釋後每股 0.79 美元，相較於 2017 年第一季每股 0.58 美元。截至 2018 年第一季末，完全稀釋後流通在外股數為 4,430 萬股。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $312.5 million at the end of the first quarter of 2018 compared to $304.3 million at the end of the fourth quarter 2017. For the quarter, MPS generated operating cash flow of about $16.3 million compared with operating cash flow of $21.9 million in the first quarter of 2017. First quarter 2018 capital spending totaled $7.4 million.

現在來看資產負債表。截至 2018 年第一季末，現金、約當現金及投資為 3.125 億美元，相較於 2017 年第四季末的 3.043 億美元。本季 MPS 產生的營運現金流約為 1,630 萬美元，相較於 2017 年第一季的 2,190 萬美元。2018 年第一季資本支出合計為 740 萬美元。

Accounts receivable ended the first quarter of 2018 at $48.2 million or 34 days of sales outstanding, which was 1 day lower than the 35 days posted in the first quarter of 2017. Our internal inventories at the end of the first quarter of 2018 were $111.9 million, up from the $99.3 million at the end of the fourth quarter of 2017. Inventories increased in anticipation of sales growth during the second half of 2018, especially for the computing, consumer and automotive markets. Days of inventory increased to 177 days at the end of Q1 2018 compared with 157 days at the end of the first quarter of 2017.

應收帳款於 2018 年第一季末為 4,820 萬美元，或銷售天數（DSO）為 34 天，較 2017 年第一季的 35 天減少 1 天。截至 2018 年第一季末，我們的內部存貨為 1.119 億美元，高於 2017 年第四季末的 9,930 萬美元。存貨增加是為了因應 2018 年下半年銷售成長的預期，尤其是在運算、消費與汽車市場。截至 2018 年第一季末，存貨天數增加至 177 天，相較於 2017 年第一季末的 157 天。

I would like -- I would now like to turn to our outlook for the second quarter of 2018. We are forecasting Q2 revenue in the range of $135 million to $141 million. We also expect the following: GAAP gross margin in the range of 54.9% to 55.9%; non-GAAP gross margin in the range of 55.4% to 56.4%; total stock-based compensation expense of $15.2 million to $17.2 million, including approximately $500,000 that would be charged to cost of goods sold; litigation expenses ranging between $300,000 to $500,000; GAAP R&D and SG&A expenses between $48.4 million and $53.4 million; non-GAAP R&D and SG&A expenses to be in the range of $33.7 million to $36.7 million. This estimate excludes stock compensation and litigation expenses.

我想——我現在想轉到我們對2018年第二季的展望。我們預測第二季營收將介於1.35億美元至1.41億美元之間。我們也預期如下：GAAP毛利率介於54.9%至55.9%；非GAAP毛利率介於55.4%至56.4%；股票基礎薪酬費用總額介於1,520萬美元至1,720萬美元之間，其中約50萬美元將計入銷貨成本；訴訟費用介於30萬美元至50萬美元之間；GAAP研發與銷售、一般及行政（SG&A）費用介於4,840萬美元至5,340萬美元之間；非GAAP研發與SG&A費用介於3,370萬美元至3,670萬美元之間。此估計不包含股票薪酬與訴訟費用。

Interest and other income is expected to range from $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. In conclusion, we continue to grow and continue to enhance shareholder value.

利息及其他收入預期在扣除外匯損益前介於60萬美元至70萬美元之間，完全稀釋後股數預計介於4,390萬至4,490萬股。總結而言，我們持續成長，並持續提升股東價值。

I will now open the phone lines for questions.

我現在開放電話線供提問。

(Operator Instructions) And our first next question is from Quinn Bolton from Needham.

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

Michael and Bernie, I wanted to start with the power management business, specifically for the Purley cycle. Can you give us an update on when the QSMod solutions for CPU power begin to ramp? Does that start this quarter?

Michael和Bernie，我想先從電源管理業務談起，特別是針對Purley週期。你們能否更新一下CPU電源用的QSMod解決方案何時開始放量？是從本季開始嗎？

I think it's the -- we see it started -- starting the last couple of quarters and just slowly. There are other -- all these activities -- yes, now we see a lot more.

我想是——我們看到它已經開始——從最近幾個季度開始，而且只是緩慢地進行。還有其他——所有這些活動——是的，現在我們看到更多了。

Yes. And I think that, in addition to Purley, we've certainly increased the number of design wins that we have on this cycle with some of our other products, the point-of-load and the E-Fuse. And so as we look ahead, we see it continuing momentum growth.

是的。而且我認為，除了Purley之外，我們也確實在這個週期中，透過其他一些產品（如負載點（point-of-load）與E-Fuse）增加了我們拿下的設計導入（design wins）數量。因此展望未來，我們看到它將持續保持動能成長。

Do you guys still think you're on track to pick up those 4 to 5 points of share that you'd previously talked about?

你們仍然認為有望如先前所說，拿下那4到5個百分點的市佔嗎？

Yes. Well, we only talked about results for the next quarter forecast. We don't see anything that's changing that assumption.

是的。嗯，我們只談了下一季的預測結果。我們沒有看到任何會改變該假設的因素。

Yes. Look, this is very -- at the very beginning -- early for MPS. Other opportunities still developing here.

是的。你看，對MPS而言，這還非常——才剛開始——很早期。其他機會仍在這裡持續發展中。

Okay. And then the second question, just kind of it looks like your inventories are up in anticipation of sort of higher second half sales. But I think the last couple of quarters, you've said that things in the supply chain are tight. You were worried about double ordering. I think that was particularly something that you were worried about heading into the fourth quarter. Can you just give us an update on your backlog coverage? Do you think you've seen -- have you been able to sort of shake out any potential excess from the order books?

好的。第二個問題，看起來你們的庫存上升，是為了因應下半年較高的銷售。但我想在過去幾個季度，你們提到供應鏈吃緊。你們擔心重複下單（double ordering）。我記得那特別是你們在進入第四季前所擔心的事情。能否請你們更新一下訂單積壓（backlog）的覆蓋情況？你們是否看到——是否已能從訂單簿中梳理出任何可能的超額訂單？

Yes, I think that it's prudent to be cautious as far as interpreting the ordering trends that we're seeing. In each of the last 3 quarters, the bookings and backlog going into the quarter have been running higher than they traditionally have. And so as a result of that, we wanted to, a, be able to make sure that we have adequate inventory in order to be able to meet real demand. But by the same token, we're trying to manage what we observe as far as inventory in the channel to make sure that, that doesn't increase and come at the expense of future growth. So when we looked at the channel inventory at the end of Q1, it was very consistent. In fact, it was down a few days from where we had been a year ago.

是的，我認為在解讀我們所看到的下單趨勢時，保持謹慎是明智的。在過去3個季度中，每一季在進入季度時的接單（bookings）與訂單積壓（backlog）都高於以往的傳統水準。因此，我們希望，第一，能確保我們有足夠的庫存以滿足真實需求。但同時，我們也在管理我們所觀察到的通路庫存，確保它不會增加，並且不會以犧牲未來成長為代價。所以當我們檢視第一季末的通路庫存時，它非常一致。事實上，相較於一年前，它還少了幾天。

Our next question is from Rick Schafer from Oppenheimer.

我們的下一個問題來自Oppenheimer的Rick Schafer。

So your auto business -- maybe my first question, your auto business has been doubling annually, I guess, the last few years. I think it was up close to 50%, I think, you highlighted, Bernie, in your remarks this past quarter. Can you talk about the growth expectation for 2018? As much as you -- much color as you can give there. And maybe provide some color on what's driving that growth. I mean, it seems like ADAS is becoming a bigger incremental driver. So as mix kind of maybe favors ADAS going forward, can you talk about what that does to maybe gross margin in that segment?

關於你們的車用業務——也許我的第一個問題是，你們的車用業務在過去幾年似乎每年都翻倍成長。我想你在本季的談話中提到，Bernie，成長接近50%。你能談談2018年的成長預期嗎？請盡可能提供更多細節。也請談談是什麼在驅動這個成長。我的意思是，看起來ADAS正成為更大的增量驅動因素。因此，若未來產品組合（mix）更偏向ADAS，你能談談這對該業務部門的毛利率可能會有什麼影響嗎？

Sure. When we look at automotive right now, we are certainly benefiting from significant growth. But still, we represent such a small portion of what the total available market is to us. So a lot of what we're seeing right now has been in the gains in infotainment and then we've also seen some gains in body controls and also in certain of the networking applications. And we look forward to opportunities in ADAS in particular. Although I don't think that those will be of a material nature to us until for another couple of years.

當然。就目前車用市場而言，我們確實受惠於顯著的成長。但同時，相對於我們可觸及的整體可服務市場（TAM），我們仍只占很小的一部分。因此，我們目前看到的很多成長來自資訊娛樂（infotainment）的市佔提升，此外我們也在車身控制（body controls）以及某些網路連結（networking）應用上有所斬獲。我們也期待特別是在ADAS方面的機會。不過我認為，這些機會對我們而言要到再過幾年才會具有實質性影響。

Got it. Second question. The 12-volt to 48-volt transition that's sort of already underway in auto, can you talk about that opportunity as it relates to GPU and CPU core power? Is that something else that we should think about as being sort of couple of years from now but before it's really a growth driver? And who do you expect to compete with there? Who do you see also going after the 48-volt market for CPU, GPU?

了解。第二個問題。車用領域從12伏轉向48伏的轉換已經在進行中，你能談談這個機會與GPU與CPU核心電源之間的關聯嗎？這是否也是我們應該視為還要再過幾年才會真正成為成長驅動因素的事情？你預期會和誰競爭？你看到還有哪些公司也在搶攻48伏的CPU、GPU市場？

I think the 48-volt market is inevitable. And as the CPU or GPU power increases, that's the only way to get the current down, to get the efficiency up. Think of the -- it's all well known that our competitors and that they are publishing papers, but we have solutions now.

我認為48伏市場是不可避免的。而且隨著CPU或GPU功率提升，這是降低電流、提高效率的唯一方式。想想——眾所周知，我們的競爭對手也在發表論文，但我們現在已經有解決方案。

And Michael, any key competitors you see there? Would it be the sort of the TIs and the Infineons of the world? Or who it be, do you think, at 48-volt?

Michael，那裡你看到有哪些主要競爭對手？會是像TI、Infineon這類公司嗎？或者你認為在48伏領域會是誰？

I don't think -- I don't -- we don't have -- see a real solution out there, okay, other than the existing 48-volts -- in 48-volts, which is very expensive, as far as I know. And I think we are the first few company -- first company that have our own solution as a semiconductor players.

我不認為——我不——我們沒有——看到外面有真正的解決方案，好嗎，除了現有的48伏——在48伏方面——據我所知那非常昂貴。而且我認為，作為半導體業者，我們是最早幾家——第一家擁有自有解決方案的公司。

Got it. And then if I could sneak one last question in, just maybe a quick update on your 300-millimeter design efforts? And I don't know how to frame that. I mean, any expectation or what your expectations are for 300-millimeter revenue contribution this year? Or is it more of a -- I know I'm asking a lot of far-out questions. I mean, is it -- or this more of a 2019/2020 kind of thing? And is...

了解。然後如果我可以再偷偷塞最後一個問題，能否簡單更新一下你們 300 毫米的設計進展？我也不太確定該怎麼問。我是說，今年 300 毫米對營收貢獻有沒有任何預期，或你們的預期是什麼？還是說這更像是——我知道我問的是很久以後的問題。我是說，這會不會——或是更偏向 2019/2020 這樣的時程？以及是否……

I think it's a 2019/2020 kind of thing. So I don't rule out at the end of the year, we have some small volume productions happening.

我認為這是 2019/2020 這類的事情。所以我不排除在年底時，我們會有一些小量產在進行。

And Michael, is that targeting any particular, like, specific verticals? Or is it just kind of across your basket of verticals?

Michael，那是鎖定任何特定的領域嗎？還是說就是橫跨你們整個垂直領域組合？

I think it's across our basket of verticals. Now we -- with the 12-inch and we integrate a lot more features in there. And as we talked about, a lot of programming capability, a lot of memories and -- along with the increase of power density. And I think that we'll be putting a power solution on -- as MPS name, so Monolithic Power Systems, we're going to put sub-power systems on a single chip. And 12-inch -- 12-inch widen our capability.

我認為是橫跨我們的垂直領域組合。現在我們——在 12 吋（晶圓）上，我們會整合更多功能進去。而且如我們談到的，有很多可程式化能力、很多記憶體，並且——伴隨功率密度的提升。我想我們會把電源解決方案——以 MPS 的名義，也就是 Monolithic Power Systems——把子電源系統放到單一晶片上。而 12 吋——12 吋擴大了我們的能力。

Our next question is from William Stein from SunTrust.

下一個問題來自 SunTrust 的 William Stein。

I'd like to sort of contrast the growth rate in light of your inventory build in the quarter. I mean, you've been a rapid growth company for some time. You've accelerated the year-over-year growth in the last couple quarters now, which is great, and inventories are increasing. Should we expect that acceleration to continue and to see even higher year-over-year growth rates as we progress through the year? That's what the inventory build would imply. So if not, I'm hoping maybe we can reconcile it a little bit.

我想就你們本季的庫存增加，來對照一下成長率。我是說，你們一直以來都是高速成長的公司。你們在最近幾個季度加速了年對年成長，這很棒，而庫存也在增加。我們是否應該預期這種加速會持續，並且隨著今年推進看到更高的年對年成長率？庫存增加看起來暗示了這點。所以如果不是，我希望我們能稍微把它對起來、解釋一下。

Yes. That's a good reading, okay. I mean, of course, we're not saying -- okay, we're going to be accelerating more. But we certainly anticipated that, okay, if there's opportunity there.

是的。這樣解讀很好，好的。我的意思是，當然我們不是在說——好，我們會加速得更多。但我們確實預期，如果那裡有機會的話。

And for investors that sort of look at this outsized growth rate and recognize it's pretty unusual, pretty unique in semis, can you help us maybe review the reasons that you're seeing the design wins maybe from a technology perspective or just from the design wins that you've won recently that you can talk about that would exemplify why you're seeing such rapid growth?

對於投資人來說，他們看到這種超常的成長率，並認知到在半導體產業這相當不尋常、相當獨特；你能否幫我們回顧一下你們看到這些設計導入（design wins）的原因——可能從技術角度，或是從你們最近拿下、可以談的設計案——來具體說明為什麼你們能有這麼快的成長？

Well, it's a -- if we're talking about all the design wins, okay, we can go for hours. And frankly, I don't even know, I can remember 3 or 4 things, okay. I mean, just -- and this is truly a broad-based growth. And we're not using our standard products and using our configurable software. We can go into many different fields. That's actually realities, yes. And that's the beauty of it. I can't say which one is -- has more growth. And now, you're talking about server, you're talking about autos, and these are much -- very high concentrated market segments that we can talk about. But a lot of others actually grow more than this area. So I can't really talk about it. And we have a -- in fact, a lot of smaller customers using our solution, that really excites me. That means, okay, we're pushing the margin even higher, and we provide the service. Our customers really want that even though we have outrageous margins. So that's kind of the things I'm getting excited.

嗯，這個——如果要談所有的設計導入，好的，我們可以講好幾個小時。坦白說，我甚至不確定我能記得 3、4 件事，好的。我的意思是——而且這確實是廣泛基礎的成長。我們不是只用標準產品，而是搭配我們可配置的軟體。我們可以進入很多不同的領域。這就是現實，是的。而這就是它的美妙之處。我無法說哪一個——成長更多。現在你談到伺服器、你談到汽車，這些都是我們可以談的、非常高度集中的市場區隔。但其實還有很多其他領域的成長甚至超過這些。所以我真的很難具體談。而且我們——事實上，有很多較小的客戶在使用我們的解決方案，這讓我非常興奮。這代表，好的，我們把毛利推得更高，而且我們提供服務。即使我們的毛利高得驚人，我們的客戶仍然真的想要那樣的服務。所以這就是讓我感到興奮的事情。

Our next question is from Ross Seymore from Deutsche Bank.

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

The comments you said earlier, Bernie, about the inventory up because you saw opportunities in the second half, I think you said in computing, consumer and automotive. Without going into specific customers and sockets, et cetera, can you just talk a little bit about the applications into which you're putting those parts in the back half of the year? And just what sort of dollar content penetration, market penetration, just some numbers around those to give us a little more color to help investors feel comfortable with the inventory level?

Bernie，你先前提到庫存上升是因為你們看到下半年有機會，我想你說是在運算、消費性與車用。不談特定客戶與特定插槽（sockets）等細節，你能否稍微談談你們在下半年把這些零件用到哪些應用上？以及大概的單機價值含量滲透（dollar content penetration）、市場滲透之類的——給一些數字，讓我們更有畫面，幫助投資人對目前的庫存水位感到安心？

Sure. So when we look at a lot of the growth that we've -- we started to enjoy, probably beginning in Q3 of 2017, we were basically introducing new products and new markets for new customers. And the demands of these customers are significant, meaning that we didn't want to come out of the gate with our new release -- new product releases and not be able to sustain the growth because of being constrained in any way. So I think you recall that last year, we invested in bringing up a fourth fab in order to aid capacity. So really, this has been pretty consistent as far as an overarching supply chain management philosophy to position us to be able to achieve, as Michael said, should the demand be there, this accelerated rate of revenue growth. And we believe that we have actually targeted -- so when we look at the inventory levels, they're targeted in some of the highest-growth revenue areas. And right now, it's also, in the quarter, pretty well evenly split between raw materials, work in process and finished goods. Meaning, that what we've done is have a very balanced approach to how we're making those investments.

當然。所以當我們看我們開始享受到的許多成長——大概從 2017 年第三季初開始——我們基本上是在為新客戶導入新產品與新市場。而這些客戶的需求很可觀，意思是我們不希望在推出新版本——新產品發佈——之後，因為任何限制而無法支撐成長。所以我想你還記得，去年我們投資啟用第四座晶圓廠，以協助產能。因此，這其實一直相當一致，作為一個總體的供應鏈管理理念：讓我們能夠達成——如 Michael 所說——如果需求存在的話，這種加速的營收成長率。而我們相信我們實際上已經鎖定——所以當我們看庫存水位時，它們是鎖定在一些營收成長最快的領域。而且目前在本季，原物料、在製品與成品之間的分布也相當平均。這表示我們在進行這些投資時，採取的是非常均衡的方法。

Yes, Ross, you don't have to worry about these inventories, okay. I mean, we increased it -- and I know our investors -- some of the investors are kind of sensitive, okay, and I'm kind of irritated, okay. And we grow this much and we need real inventory to back it up. And on top of it, all these products are new products. If anything goes wrong, we have something to back it up. And also provides with some industrial, automotive, even computing company. They want inventory. They want -- we're the new players and we guaranteed they're supplied. So that's why we're doing it. And so last reason is I don't worry about inventory, our product cycle lasts for 10 years, and we don't have a problem until have a huge write-off.

是的，Ross，你不需要擔心這些庫存，好的。我的意思是，我們把它提高了——我知道我們的投資人——有些投資人有點敏感，好的，而我有點被惹毛了，好的。我們成長這麼多，就需要真正的庫存來支撐。而且除此之外，這些產品都是新產品。如果有任何地方出問題，我們也有東西可以支援。同時也供應給一些工業、車用，甚至運算類公司。他們想要庫存。他們想要——我們是新進者，而我們保證他們的供應。所以這就是我們這麼做的原因。最後一個原因是，我不擔心庫存，我們的產品週期長達 10 年，而且在出現巨額減記之前，我們不會有問題。

That's very helpful. My second question, and I'm going to try to not to irritate you further. If that one happened to, this one might do worse. But the guidance -- on an absolute-dollar basis, the guidance is great. On year-over-year, the guidance is great. Sequentially though, that's less growth than you guys -- I mean, I have to go back many, many, many years. Is there anything that's changing the very near term, the bridge between now and the second half growth that's less than normal? Is there something that's changed just with the move to ASC 606 as far as the seasonality? Just trying to figure out -- or are you just being conservative like you tend to do over time for consistency's benefits? Just trying to figure out what went into the guidance in those regards.

這很有幫助。我的第二個問題，我會盡量不要再惹你更不高興。如果剛剛那個問題讓你不爽，這個可能更糟。但關於財測——以絕對金額來看，財測很棒。以年對年來看，財測也很棒。但以季對季來看，成長就比你們以往要少——我是說，我得回溯很多很多很多年。在非常短期內，有沒有任何事情正在改變——也就是從現在到下半年之間，那段成長比平常少的橋接因素？是否有什麼因採用 ASC 606 而在季節性上改變了？只是想弄清楚——還是你們只是像過去一樣偏保守，以維持一致性的好處？只是想了解在這些方面，你們的財測是怎麼形成的。

Sure, I can help out with this. So if you look at -- generally speaking, we have a fairly large or pronounced falloff in revenue between Q4 to Q1, and that didn't occur. So the base that we're starting out with in Q1 revenue is much higher than the seasonal norm we'd normally provide for. And some of that represented that we had some late deliveries in Q1 that aided our performance in the quarter but then also creates a issue with the comparable Q2 number. So I would say that we do have a profile to always be able to meet expectations and, in fact, do a little bit better. And there is a change in seasonality relative to what our historic norm has been with Q1, and none of that is related in any way to the 606, the new revenue-recognition standard.

當然，我可以協助處理這個。所以如果你看一下——一般來說，我們的營收在第4季到第1季之間通常會有相當大、或很明顯的季節性下滑，但這次並沒有發生。因此，我們在第1季營收的起始基期就比我們通常會提供的季節性常態高出許多。其中一部分是因為我們在第1季有一些延後交付，這有助於我們該季的表現，但同時也會讓第2季的可比數字出現問題。所以我會說，我們一直都有能力達到市場預期，事實上還能做得稍微更好一些。而相較於我們過去第1季的歷史常態，季節性確實有所改變，但這些都與606（新的收入認列準則）完全無關。

Yes, I think, Ross, you've covered us since the IPO, right. And you see the seasonality change. And we -- from a consumer-centric to broad based now, okay. And last year, we see a 4 quarters consecutive growth. That's the first time -- I think, the first time ever and...

是的，我想，Ross，你從我們IPO以來就一直追蹤我們，對吧。而你也看到了季節性的變化。而我們——從以消費者為中心，現在轉為更廣泛的布局，好嗎。而去年我們看到連續4個季度的成長。那是第一次——我想，是史上第一次，而且……

2006.

2006年。

Well, 2006, that was the last time, so this is the second time. And I think of this time is a really changed -- in a -- from the -- all the business changed. And that's a less irritating question.

嗯，2006年是上一次，所以這是第二次。而我認為這一次真的是一個很大的改變——在某種——從——整個業務都改變了。而這是一個比較不那麼惱人的問題。

Our next question is from Tore Svanberg from Stifel.

我們的下一個問題來自Stifel的Tore Svanberg。

First question, could you update us on e-commerce and your programmable products. Or is that business model starting to contribute to revenue yet? Or is that still more of a second half event?

第一個問題，你能否更新一下電子商務以及你們的可程式化產品。或者說，這種商業模式是否已開始對營收有所貢獻？還是這仍然比較像是下半年才會發生的事情？

Well, I think our web -- e-commerce website is up, and I think that's only the first step. And regarding to revenue, no, okay. And -- but the business model, and it's more -- the more I visit customers, these are smaller customers, and the more I'm really excited. I think of this as that we were hitting an inflection point in some point -- sometime this year or next year, as we provide a more -- now's the time to provide more content. What can we put on the website, how we serve all these time to -- very quick time-to-market product or underserved customers. And the business models are truly, I really believe, are more and more -- I believe, when I visit those smaller customers, and I see a lot more opportunity. And now we have to deliver more content. We have the website -- but although the programming portion is still not there yet. But as we -- as I talk about it, we hand them a floppy disk, and they can program it on their own now.

嗯，我想我們的網路——電子商務網站已經上線了，而我認為那只是第一步。至於營收方面，沒有，好嗎。但是——就商業模式而言，而且更——我越是拜訪客戶，這些是較小型的客戶，我就越感到興奮。我認為我們在今年或明年的某個時間點會到達一個拐點，因為我們會提供更多——現在正是提供更多內容的時候。我們能在網站上放什麼、我們如何服務這些需要——非常快速上市（time-to-market）的產品或是過去服務不足的客戶。而這些商業模式確實——我真的相信——會越來越——我相信，當我拜訪那些較小型客戶時，我看到更多機會。而現在我們必須交付更多內容。我們有網站——但程式設計（programming）的部分目前還沒有到位。不過，正如我所說，我們現在會給他們一張軟碟，他們就可以自己去做程式化設定。

That's really helpful. And on that same topic and as that business model starts to materialize, I mean, wouldn't that mean that inventory days will be higher anyway just because these are programmable parts?

這非常有幫助。同樣延續這個主題，當這種商業模式開始成形時，我是說，這是否意味著庫存天數無論如何都會更高，因為這些是可程式化的零件？

I haven't really thought about this what the product will be because we have a third-party product and -- as part of our solutions, okay. And so that probably will be a higher inventory in the future.

我其實還沒有仔細想過產品會是什麼樣子，因為我們有第三方產品，並且——作為我們解決方案的一部分，好嗎。所以未來庫存可能會更高。

And Tore, part of the benefit of being able to go to the 12-inch wafer is that we can have larger production runs and get better cost economics that certainly benefit this mass customization market.

而且Tore，能夠轉向12吋晶圓的其中一個好處是，我們可以進行更大規模的生產批次，並取得更好的成本經濟效益，這對這個大規模客製化市場當然很有利。

Okay, great. And I had a follow-up question on the 48-volt. So are you using the BCDHV process for that? Or is it something else?

好的，很棒。我還有一個關於48伏的追問。所以你們是使用BCDHV製程來做那個嗎？還是用其他的？

No, that's correct. And we have a very efficient solution. And I think as a lot of people have seen it, and we're presenting a paper that we have a real product now, okay. And these are -- this product family is very cost effective. And I think of the 48-volts, we're really betting on it, that the future.

不，是的，沒錯。而且我們有一個非常高效率的解決方案。我想很多人都已經看到了，而且我們正在發表一篇論文，表示我們現在已經有真正的產品了，好嗎。而且——這個產品系列非常具有成本效益。而我認為在48伏這一塊，我們真的在押注它，這是未來。

Okay. Just one last question. I know there's been some talks in the industry about shortages, especially for raw wafers. Is that something that you're seeing? And have you secured enough capacity there for your growth going forward?

好的。最後一個問題。我知道業界一直有一些關於短缺的討論，特別是原始晶圓。你們有看到這種情況嗎？而且你們是否已為未來的成長確保了足夠的產能？

We don't have a shortage. And we don't have a shortage, and last year, we expand the fab, and this year, we expand the fab again. And we don't see shortages, okay. We don't. And we have a lot of inventories, and we don't have a shortage issue. And to other ones, I heard a lot of stories, okay, out there. I can't confirm if the -- yes.

我們沒有短缺。我們沒有短缺，而且去年我們擴建了晶圓廠，今年我們又再次擴建晶圓廠。我們沒有看到短缺，好嗎。我們沒有。而且我們有很多庫存，我們沒有短缺的問題。至於其他的，我在外面聽到很多故事，好嗎。我無法確認是否——是的。

Our next question is from Chris Caso from Raymond James.

我們的下一個問題來自Raymond James的Chris Caso。

Just another question, following on to the seasonality question. And is there anything in particular we should be thinking about seasonality with respect to individual segments embedded in the Q2 guidance with automotive and computing carrying much of the sequential growth in Q1? Does that continue into Q2? Or do you see a bit more broad-based revenue growth as you go in Q2?

再問一個問題，延續季節性的問題。在第2季指引中，若以汽車與運算在第1季承擔了大部分的季增成長來看，對於各個細分市場的季節性，有沒有什麼特別需要我們思考的？這樣的趨勢會延續到第2季嗎？或者你們在第2季會看到更廣泛的營收成長？

I can give you something, what I see it, okay, and what I believe. The business that we focus on are very long term and are very broad based. And these are design-in activities and have -- design-in activities turn into revenue takes about 3 or 4 years. And we see all these activities, and we see all these activities turning into revenues. And I think from now on, we will have a very consistent growth, and that's really where we want to see it, in a steady state. And the growth on the -- or maybe steady state have a bad connotation. Some of you are going to pick up, okay, we're slowing down. We're not, okay. And so I think of the consistent is the key. And for my next couple of quarters, and we don't see much of a difference from last year, I guess. Yes.

我可以給你一些——我所看到的，好嗎，以及我所相信的。我們聚焦的業務都是非常長期、而且覆蓋面很廣的。這些是design-in（設計導入）活動，而——從design-in活動轉化為營收大約需要3到4年。我們看到所有這些活動，也看到這些活動正在轉化為營收。而我認為從現在開始，我們會有非常一致的成長，這正是我們想看到的，也就是在一個穩定狀態下。而成長在——或者說「穩定狀態」可能有不好的含意。你們有些人可能會解讀成，好嗎，我們在放緩。我們沒有，好嗎。所以我認為「一致性」是關鍵。而在接下來幾個季度，我想我們看不出與去年有太大的差異。是的。

I mean, one of the things that we work to do is even though we're in high growth relative to our industry, is we want to be predictable. And I don't think there's anything boring about that.

我的意思是，我們努力去做的一件事是，即使相對於我們的產業我們處於高成長，我們仍希望是可預測的。而我不認為這有什麼無聊的。

Right. Well, as a follow-on to that, given the -- what appears to be strong industry conditions, strong revenue for you guys, to what extent are you able to be somewhat selective in the business that you take from a quarter-to-quarter basis? I'm sure that there's some margin discrepancies up -- along some of the things that you sell. Given the business conditions right now, are you able to be a little bit more selective in that business? And if so, what does that mean?

對。那麼，作為延伸問題，鑑於——看起來產業景氣強勁、你們營收也很強，在每一季的基礎上，你們在承接業務方面能在多大程度上更具選擇性？我相信你們所銷售的某些產品之間，毛利率可能存在一些差異。以目前的經營環境來看，你們是否能在承接這些業務時更有選擇性？如果可以，這代表什麼？

One of the things that we benefited from as we've seen this shift in our business mix is that there's longer lead times. And so as a result of that, we're able to have very consistent 10 to 20 basis points improvement in our gross margin quarter-over-quarter, and what that allows us to do is find the mix that allows us to accelerate our rate of revenue growth. So it's really having that visibility in that lead time that allows us to be able to manage the business in this manner.

我們在業務組合轉變中受益的一點是交期變長了。因此，我們得以在季度對季度的基礎上，讓毛利率非常穩定地提升10到20個基點；而這讓我們能找到一個組合，使我們可以加速營收成長的速度。所以，正是因為在交期上有那樣的可視性，才讓我們能以這種方式來管理業務。

Great. If I just, one quick follow-on. In computing, Intel made some changes to the road map on 10-nanometer pushing some of that out. I know that you guys have had some design wins on that. Is there any material effect on your business going forward?

很好。我再追問一個很快的問題。在運算領域，Intel 對10奈米的路線圖做了一些調整，把部分時程往後推。我知道你們在那方面也有一些設計導入（design wins）。這對你們未來的業務是否有任何重大影響？

No. We're -- we keep an eye on what Intel is doing, but as far as the delay in a release or change in their road map, it does not -- it's not going to impact us.

沒有。我們——我們會關注 Intel 的動向，但就他們發佈延後或路線圖變更而言，不會——不會對我們造成影響。

(Operator Instructions) And our next question is from David Wong from Wells Fargo.

（接線員指示）下一個問題來自富國銀行（Wells Fargo）的 David Wong。

Michael, can you run through some of the R&D projects currently underway that you're most excited about?

Michael，你能談談目前正在進行、你最感到興奮的一些研發專案嗎？

Oh, it's e.Motion. And I just visited a couple of customers when I came in, and these really need our help. And they were glad to see us, okay. These are from, what do you call it, the mail -- the packaging sorter to warehouse management to massage chairs to hospital beds, okay. And they have a different kind of design. Each design take them half year -- or 3 months to half year. And we can go in there with our standard products -- standard modules. And sometimes, they want to buy us our -- buy our modules that we buy from a third party. We produce several standard product, and we use a program to change it. This has significantly changed our business. We sell instead of a few dollars a chip, now we sell $20, $30 a module now. And our customers -- or those customers really want this product. And so they do not have to go through the design. So that's kind of thing that get me excited.

喔，是 e.Motion。我剛到這裡時拜訪了幾位客戶，他們真的需要我們的協助。而且他們很高興見到我們，好嗎。這些應用從——怎麼說——郵件/包裹分揀機到倉儲管理到按摩椅到醫院病床，好嗎。而且他們的設計類型不同。每一個設計要花他們半年——或3個月到半年。我們可以用我們的標準產品——標準模組——切入。有時候，他們想向我們購買我們的——購買我們的模組，而那些模組是我們向第三方採購的。我們生產幾個標準產品，然後用一個程式去做變更。這已經大幅改變了我們的業務。我們不再只是賣幾美元的一顆晶片，現在賣的是一個20、30美元的模組。而我們的客戶——或那些客戶真的很想要這個產品。因此他們不必再走一遍設計流程。所以這就是讓我感到興奮的事情。

I think just to add to that, there's sort of 2 things that all of our R&D is focused on right now is really the ease of use and that we're really focused on selling our customers solutions as opposed to just an individual IC.

我想補充一下，目前我們所有研發主要聚焦在兩件事：一是易用性；二是我們非常專注於向客戶銷售解決方案，而不只是單一的 IC。

Okay, great. And one thing just to confirm, Bernie, I think last earnings call, you talked -- you said that adoption of ASC 606 has negligible revenue recognition impact on Q1 revenues. And that's still true going into the next quarter, is that correct?

好的，很好。另外確認一點，Bernie，我記得在上一季財報電話會議上你提到——你說採用 ASC 606 對第一季營收認列的影響可忽略不計。那進入下一季仍然是如此，對嗎？

That is correct.

沒錯。

We do a sell-to model, right. We never had a sell-through model.

我們採用 sell-to 模式，對吧。我們從來沒有採用 sell-through 模式。

Yes. We only -- our business, we had a very small portion of it that was on sell-through.

是的。我們的業務中，只有非常小的一部分是 sell-through。

Since the beginning of the company, inception of the company, we always do sell-to models.

自公司成立以來、公司創立之初，我們一直都是採用 sell-to 模式。

Correct.

對。

You buy your product, you own it. We don't have a...

你買了產品，你就擁有它。我們沒有……

Our next question is from William Stein from SunTrust.

下一個問題來自 SunTrust 的 William Stein。

It was asked and answered.

這個問題已經問過並且回答了。

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Bernie Blegen, Chief Financial Officer, for closing remarks.

謝謝。目前我這邊顯示沒有其他問題。我想把電話會議交回給財務長 Bernie Blegen 作結語。

I'd like to thank you all for joining us for this conference call. As a reminder, MPS will be hosting an Analyst Day on June 7 at our offices in San Jose, California. We expect this to be an informative update on MPS' strategic direction. I hope you will be able to join us. And if you are unable to join us on June 7, I look forward to talking to you again during our second quarter conference call, which is likely to be at the end of the July. Thank you. Have a nice day.

感謝各位參加本次電話會議。提醒一下，MPS 將於6月7日在加州聖荷西（San Jose）的辦公室舉辦分析師日（Analyst Day）。我們預期這將是一次對 MPS 策略方向的資訊性更新。希望各位能夠參加。如果你無法在6月7日參加，我也期待在我們第二季的電話會議中再次與你交流，該會議很可能在7月底舉行。謝謝。祝各位有美好的一天。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect.

各位女士、先生，感謝您參與今天的電話會議。本次會議到此結束。您現在可以掛線。