芯源系統 (MPWR) 2018 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Second Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded.

各位女士、各位先生，大家好，歡迎參加 Monolithic Power Systems 2018 年第二季財報電話會議。(接線員指示) 提醒各位，今天的會議將被錄音。

I'd now like to introduce your host for today's conference, Mr. Bernie Blegen, Chief Financial Officer. Sir, please go ahead.

現在我想介紹今天會議的主持人，Bernie Blegen 先生，財務長。先生，請開始。

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

非常感謝。各位下午好，歡迎參加 Monolithic Power Systems 2018 年第二季電話會議。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 the 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 1, 2018, and Form 10-Q filed on May 8, 2018, which are accessible through our website, www.monolithicpower.com. MPS assumes no obligation to update the information provided on today's call.

在今天的電話會議過程中，我們將提出涉及風險與不確定性的前瞻性陳述與預測，這些因素可能導致實際結果與管理層目前的觀點與預期存在重大差異。請參閱今日發布之財報新聞稿中所載的安全港聲明。可能導致實際結果不同的風險、不確定性及其他因素，已在第二季財報新聞稿以及我們向 SEC 提交的文件（包括 2018 年 3 月 1 日提交的 Form 10-K 與 2018 年 5 月 8 日提交的 Form 10-Q）中的安全港聲明中加以說明；上述文件可透過我們的網站 www.monolithicpower.com 查閱。MPS 不承擔更新今日電話會議所提供資訊的任何義務。

We will be discussing gross margin, operating expense, R&D and SG&A expense, operating income, interest and other income, net income and earnings on both a GAAP and a non-GAAP basis. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. A table that outlines the reconciliation between the non-GAAP financial measures to GAAP financial measures is included in our earnings release, which we have filed with the SEC. I would refer investors to the Q2 2017, Q1 2018 and Q2 2018 releases as well as to the reconciling tables that are posted on our website.

我們將同時以 GAAP 與非 GAAP 口徑討論毛利率、營業費用、研發與銷售、一般及行政（SG&A）費用、營業利益、利息及其他收益、淨利與每股盈餘。這些非 GAAP 財務衡量指標並非依據 GAAP 編製，不應被視為依據 GAAP 編製之財務績效衡量指標的替代或更優指標。我們的財報新聞稿（已向 SEC 提交）中包含一份表格，說明非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節。我建議投資人參閱 2017 年第二季、2018 年第一季及 2018 年第二季的新聞稿，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 earnings release filed with the SEC earlier today.

我也想提醒各位，今天的電話會議將透過網際網路進行即時網路直播，並將在我們的網站上提供重播長達 1 年，同時也會提供今日稍早向 SEC 提交的財報新聞稿。

In the second quarter of 2018, MPS set a new high watermark in quarterly revenue and non-GAAP earnings per share. MPS' Q2 revenue of $139.8 million was 8.2% higher than revenue in the first quarter 2018 and 24.6% higher than the comparable quarter in 2017. MPS' sales momentum continues to build as we generate superior results from our R&D investments, targeting the computing, automotive and industrial markets.

在 2018 年第二季，MPS 的單季營收與非 GAAP 每股盈餘皆創下新高。MPS 第二季營收為 1.398 億美元，較 2018 年第一季高出 8.2%，較 2017 年同期高出 24.6%。隨著我們從研發投資中取得優異成果並鎖定運算、車用與工業市場，MPS 的銷售動能持續增強。

Looking at our revenue by market. In our computing and storage market, revenue of $37.0 million increased $12.5 million or 51.1% year-over-year. Growth in this market was broad-based when compared to the year-ago quarter, with all applications, cloud computing, storage and high-end notebooks increasing at a rate well above the market. Computing and storage revenue represented 26.4% of the MPS' second quarter 2018 revenue.

接著按市場別來看我們的營收。在運算與儲存市場，營收為 3,700 萬美元，年增 1,250 萬美元或 51.1%。與去年同期相比，該市場的成長相當廣泛，所有應用領域——雲端運算、儲存以及高階筆電——的成長率皆遠高於市場水準。運算與儲存營收占 MPS 2018 年第二季營收的 26.4%。

Second quarter automotive revenue of $20.3 million grew 58.2% over the same period of 2017, fueled by product sales for infotainment, safety and connectivity application products. Automotive revenue was 14.6% of MPS' total second quarter 2018 revenue.

第二季車用營收為 2,030 萬美元，較 2017 年同期成長 58.2%，主要受惠於資訊娛樂、安全與連線應用產品的銷售。車用營收占 MPS 2018 年第二季總營收的 14.6%。

In our consumer markets, revenue of $47.8 million increased 8.9% over the second quarter of 2017 and represented 34.2% of our second quarter 2018 revenue. The year-over-year revenue increase reflected gains in home appliances, IoT-related applications and specialty lighting.

在消費性市場，營收為 4,780 萬美元，較 2017 年第二季成長 8.9%，占我們 2018 年第二季營收的 34.2%。年增主要反映家電、物聯網（IoT）相關應用與特殊照明的成長。

Second quarter 2018 industrial revenue of $19.1 million increased 27.2% from the second quarter 2017, due primarily to increased sales of industrial power supplies. Industrial represented 13.7% of our total second quarter 2018 revenue.

2018 年第二季工業市場營收為 1,910 萬美元，較 2017 年第二季成長 27.2%，主要由工業電源供應器銷售增加所帶動。工業市場占我們 2018 年第二季總營收的 13.7%。

GAAP gross margin was 55.5%, 10 basis points higher than the first quarter of 2018 and 80 basis points higher than the second quarter of 2017. Our GAAP operating income was $24.9 million compared to $22.0 million reported in the first quarter of 2018 and $15.0 million reported in the second quarter of 2017.

GAAP 毛利率為 55.5%，較 2018 年第一季高 10 個基點，較 2017 年第二季高 80 個基點。GAAP 營業利益為 2,490 萬美元，相較於 2018 年第一季的 2,200 萬美元，以及 2017 年第二季的 1,500 萬美元。

Non-GAAP gross margin for the second quarter of 2018 was 56.0%, 10 basis points higher than the first quarter of 2018 and 40 basis points higher than the second quarter from a year ago. Our non-GAAP operating income was $41.4 million compared to $37.2 million reported in the prior quarter and $31.2 million reported in the second quarter of 2017.

2018 年第二季非 GAAP 毛利率為 56.0%，較 2018 年第一季高 10 個基點，較去年同期第二季高 40 個基點。非 GAAP 營業利益為 4,140 萬美元，相較於前一季的 3,720 萬美元，以及 2017 年第二季的 3,120 萬美元。

Let's review our operating expenses. Our GAAP operating expenses were $52.7 million in the second quarter of 2018 compared with $49.5 million in the second quarter of 2018 and $46.5 million in the second quarter of 2017. Our non-GAAP second quarter 2018 operating expenses were $36.9 million, up from the $35.0 million we spent in the first quarter 2018 and up from the $31.2 million reported in the second quarter of 2017.

接著回顧我們的營業費用。2018 年第二季 GAAP 營業費用為 5,270 萬美元，相較於 2018 年第二季的 4,950 萬美元，以及 2017 年第二季的 4,650 萬美元。2018 年第二季非 GAAP 營業費用為 3,690 萬美元，高於我們在 2018 年第一季支出的 3,500 萬美元，也高於 2017 年第二季的 3,120 萬美元。

The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are stock compensation expense and income or loss on an unfunded deferred compensation plan.

此處所討論各季度之非 GAAP 與 GAAP 營業費用之差異，主要來自股票酬勞費用，以及未提撥資金之遞延補償計畫所產生的收益或損失。

For the second quarter of 2018, total stock compensation expense, including approximately $480,000 charge to cost of goods sold was $15.9 million compared with $15.0 million recorded in the first quarter of 2018.

2018 年第二季股票酬勞費用合計為 1,590 萬美元，其中包含約 48 萬美元計入銷貨成本；相較之下，2018 年第一季認列為 1,500 萬美元。

Switching to the bottom line. Second quarter 2018 GAAP net income was $24.2 million or $0.55 per fully diluted share compared with $21.9 million or $0.49 per share in the first quarter of 2018 and $15.0 million or $0.35 per share in the second quarter of 2017. Q2 non-GAAP net income was $40.0 million or $0.90 per fully diluted share compared with $35.0 million or $0.79 per share in the first quarter of 2018 and $29.5 million or $0.68 per share in the second quarter of 2017.

接著看最終獲利。2018 年第二季 GAAP 淨利為 2,420 萬美元，或完全稀釋後每股 0.55 美元；相較於 2018 年第一季的 2,190 萬美元或每股 0.49 美元，以及 2017 年第二季的 1,500 萬美元或每股 0.35 美元。第二季非 GAAP 淨利為 4,000 萬美元，或完全稀釋後每股 0.90 美元；相較於 2018 年第一季的 3,500 萬美元或每股 0.79 美元，以及 2017 年第二季的 2,950 萬美元或每股 0.68 美元。

Fully diluted shares outstanding at the end of Q2 2018 were 44.4 million.

2018 年第二季末的完全稀釋流通在外股數為 4,440 萬股。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $318.7 million at the end of the second quarter of 2018 compared to $312.5 million at the end of the first quarter of 2018. For the quarter, MPS generated operating cash flow of about $25.4 million compared with Q1 2018 operating cash flow of $16.3 million. Second quarter 2018 capital spending totaled $5.6 million.

現在我們來看資產負債表。截至 2018 年第二季末，現金、約當現金及投資為 3.187 億美元，相較於 2018 年第一季末的 3.125 億美元。本季 MPS 產生的營運現金流約為 2,540 萬美元，對比 2018 年第一季的營運現金流 1,630 萬美元。2018 年第二季資本支出合計 560 萬美元。

Accounts receivable ended the second quarter of 2018 at $53.5 million, representing 35 days of sales outstanding, which was 1 day higher than the 34 days reported both at the end of the first quarter of 2018 and at the end of the second quarter of 2017. Our internal inventories at the end of the second quarter of 2018 were $128.9 million, up from the $111.9 million in the first quarter of 2018. Days of inventory increased to 189 days at the end of Q2 2018 from the 177 days at the end of first quarter of 2018. The increase in inventory days is due to a buildup in advance of seasonally high Q3 revenue; changing customer requirements, particularly in automotive, computing and gaming applications; and hedging for potential upside in the second half of 2018.

2018 年第二季末應收帳款為 5,350 萬美元，代表銷售收現天數（DSO）為 35 天，較 2018 年第一季末及 2017 年第二季末所報告的 34 天各增加 1 天。截至 2018 年第二季末，我們的內部存貨為 1.289 億美元，高於 2018 年第一季的 1.119 億美元。截至 2018 年第二季末，存貨天數由 2018 年第一季末的 177 天增加至 189 天。存貨天數增加係因：為迎接季節性較高的第三季營收而提前備貨；客戶需求變動，尤其是在汽車、運算與遊戲應用；以及為 2018 年下半年潛在上行空間進行避險。

I would now like to turn to our outlook for the third quarter of 2018. We are forecasting Q3 revenue in the range of $155.5 million to $161.5 million. We're also expecting -- we also expect the following: GAAP gross margin in the range of 55.2% to 56.2%; non-GAAP gross margin in the range of 55.6% to 56.6%; total stock-based compensation expense of $15 million to $17 million, including approximately $500,000 that will be charged to cost of goods sold; GAAP R&D and SG&A expenses between $52.3 million and $57.3 million; non-GAAP R&D and SG&A expenses to be in the range of $37.8 million to $40.8 million. In anticipation of higher revenue in the next 2 to 3 years, we are stepping up investment in our foundry capabilities. We're actively qualifying 2 12-inch fabs and are in the process of developing advanced technologies.

接下來我想談談我們對 2018 年第三季的展望。我們預估第三季營收介於 1.555 億至 1.615 億美元。我們也預期如下：GAAP 毛利率介於 55.2% 至 56.2%；非 GAAP 毛利率介於 55.6% 至 56.6%；股票基礎給付費用合計 1,500 萬至 1,700 萬美元，其中約 50 萬美元將計入銷貨成本；GAAP 研發與銷售、一般及管理（SG&A）費用介於 5,230 萬至 5,730 萬美元；非 GAAP 研發與 SG&A 費用介於 3,780 萬至 4,080 萬美元。為因應未來 2 到 3 年更高的營收，我們正在加大對晶圓代工能力的投資。我們正積極進行 2 座 12 吋晶圓廠的認證，並正在開發先進技術。

Other income is expected to be in the range from $600,000 to $1 million before foreign exchange gains and losses, fully diluted shares to be in the range of 44.0 million to 45.0 million shares before share buyback. We are continuing to execute our long-term business strategy, which we believe will maximize long-term shareholder value.

其他收入（不含匯兌損益）預期介於 60 萬至 100 萬美元；在庫藏股回購前，完全稀釋股數預期介於 4,400 萬至 4,500 萬股。我們將持續執行長期業務策略，我們相信這將使股東長期價值最大化。

I will now open the phone lines for questions.

我現在開放電話線供提問。

(Operator Instructions) Our first question comes from the line of Ross Seymore with Deutsche Bank.

(接線員指示) 我們的第一個問題來自德意志銀行（Deutsche Bank）的 Ross Seymore。

This is Jeriel Ong on behalf of Ross. Just want to focus in on the auto business a little bit. It's kind of grown from being your smallest business line to now larger than both comms and industrial. At the Analyst Day, you guys detailed that you could see auto growing at 40%, 50% CAGR. Auto grew about 60%, 65% CAGR from 2013 to 2017. Is it fair to think of auto growing like about anywhere from maybe 40% CAGR going forward through 2021? I guess, how do you guys think about the growth going forward?

我是 Jeriel Ong，代表 Ross 提問。我想稍微聚焦在汽車業務。它從你們最小的業務線，成長到現在比通訊與工業都更大。在分析師日，你們提到汽車業務可能以 40%、50% 的年複合成長率（CAGR）成長。汽車業務在 2013 到 2017 年約以 60%、65% 的 CAGR 成長。是否可以合理地認為，展望未來到 2021 年，汽車業務大約會以 40% 左右的 CAGR 成長？也就是說，你們如何看待未來的成長？

Sure. At the Analyst Day that was on June 7, we characterized growth in the next 3 years of being in the range between 40% to 50% in any given year. And on a quarterly basis, because there's sort of a step-function with how revenue increases here, that it could be between 30% and 60%. So I think that you're in the right ballpark in -- for your CAGR.

當然。在 6 月 7 日的分析師日，我們將未來 3 年的成長描述為每一年大約介於 40% 到 50% 的區間。而以季度來看，由於營收增加呈現某種階梯式（step-function）的特性，可能介於 30% 到 60%。所以我認為你對 CAGR 的估計大致在正確範圍內。

All right. Appreciate that. And next I'd like to ask about the inventory dynamics you guys had this quarter. I understand you guys had some prepared remarks, but I'd love to hear you guys elaborate a little bit more on this. So inventory is up 39% year-on-year. Your -- that's ahead of revenues for actually the sixth straight quarter. Maybe there is mix dynamic there, I understand, with auto. Maybe some of your parts have a longer life cycle and maybe require more of a build. But is there anything else that you'd like to elaborate on why inventories continue to be outgrowing revenues?

好的。感謝。接下來我想問本季你們的存貨變化。我知道你們在事先準備的講稿中有提到，但我希望你們能再多補充一些。存貨年增 39%。而且這已經是連續第六季存貨增速領先營收。我理解可能有產品組合的因素，例如汽車。也許你們某些零件生命週期較長，可能需要更多備貨。但除此之外，是否還有其他原因可以補充，為什麼存貨持續比營收成長更快？

Actually, you gave a pretty complete answer for me there, in that we're experiencing...

其實你剛剛已經替我把答案說得很完整了，因為我們正在經歷……

We already said in earnings, right? One of -- is the way of hedging the potential future growth. And I can give you more color is that we have so many products introduced in the market. They start to ramp. A lot of them, you haven't seen the revenue yet. And during the ramps, you don't want to see any hiccup, either the number of the product or the quality issues. And we don't have any history of it. And that's the way to be very cautious. We use the cash wisely, and we never intend to do -- MPS in the history, we don't write a lot of inventory. And so if you want to talk about our inventories, this is how we manage it. And we have a long life cycles, okay? And as long that we see growth -- grow the top line, grow the EPS, I don't care the rest of it.

我們在財報說明裡已經講過了，對吧？其中一個原因——就是用來對沖未來潛在成長的方式。我可以再補充一些細節：我們有非常多產品導入市場。它們開始放量爬坡。其中很多產品，你們還沒看到營收。而在爬坡期間，你不希望看到任何卡關，不論是產品數量供應或品質問題。而我們也沒有相關的歷史數據可依循。因此這是一種非常謹慎的做法。我們會明智地運用現金，而且 MPS 歷史上我們從不打算——我們不會大量沖銷存貨。所以如果你想談我們的存貨，這就是我們的管理方式。而且我們的產品生命週期很長，好嗎？只要我們看到成長——營收成長、EPS 成長，其他的我不在乎。

Our next question comes from the line of Quinn Bolton with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

Congratulations on the nice results for June and particularly strong guide for September. Just wanted to start with the September quarter. Is there anything in particular, any one end market where you're seeing particular strength relating to that guide? Or is it pretty broad-based? And then I've got a couple of follow-ups.

恭喜 6 月季度繳出不錯的成績，尤其是對 9 月季度給出特別強勁的指引。我想先從 9 月季度開始問。在你們的指引中，是否有任何特定的終端市場特別強勁、帶動了這個展望？還是說成長相當廣泛、全面性？接著我還有幾個追問。

It's pretty much broad-based. I mean, all the growth there that we covered in the last few quarters, the stories remain the same. We are very -- we're at the very beginning, and all the products are ramping across the board.

基本上是全面性的。我是說，我們在過去幾個季度所涵蓋的所有成長，那些故事仍然一樣。我們還在非常——我們正處於非常早期的階段，而且所有產品都在全面爬坡放量。

You guys still feel pretty comfortable with hitting that 8% to 10% share of the server power management market by or for all of 2018?

你們仍然對在2018年全年達到伺服器電源管理市場8%到10%的市占率感到相當有把握嗎？

Yes, our expectations for the server market have really -- have not changed in the 18 months since we started discussing it in those terms. We're seeing very positive results and very good acceptance and continuation of good volume.

是的，我們對伺服器市場的預期確實——自從我們在18個月前開始用那樣的說法討論以來，並沒有改變。我們看到非常正面的結果、很好的接受度，以及良好出貨量的持續。

Great. And then just wanted to ask, some others in the industry have been constrained by the supply of ceramic capacitors and passive devices. And just wondering if you're seeing those same constraints? If so, are you doing anything to try to avoid some of those constraints, possibly purchasing passive devices that you can sell as part of your solution to the customers. Or any thoughts on the supply of passives and whether it's impacting your business?

很好。接著我想問一下，產業內有些公司受到陶瓷電容與被動元件供應的限制。想請問你們是否也看到同樣的限制？如果有，你們是否在做些什麼來避免這些限制，例如採購一些被動元件，並把它們作為你們解決方案的一部分賣給客戶？或是對被動元件供應以及是否影響你們業務，有任何看法？

Yes, it does impact our business. And a lot of product ramping are not as high as we expected it. And we are looking heavily to design around without using the capacitors.

是的，這確實會影響我們的業務。而且很多產品的爬坡放量沒有我們預期的那麼高。我們也在積極研究透過設計繞開、盡量不使用那些電容。

Okay. And then lastly, for you, Bernie, you mentioned the step-up in spending here to qualify 2 12-inch foundries, something like that, that might be a 2- to 3-year phenomena. Is that -- does that take you above the OpEx as a percent of sales in that range of 50% to 60%? Or do you still think you can kind of target that 50% to 60% OpEx growth as a percent of revenue growth?

了解。最後一個問題給你，Bernie，你提到為了認證兩座12吋晶圓代工廠之類的事情，支出會有一個階段性的提升，可能會是2到3年的現象。那——這是否會讓你們的營業費用（OpEx）占營收比率高於50%到60%那個區間？還是你們仍然認為可以把OpEx維持在營收成長的50%到60%這個目標範圍？

Yes, I think for a brief period of time here, and I don't know how many quarters necessarily that's going to be. But while we're ramping and qualifying the 2 fabs, we will be beyond what our model is. But we're very conscious of the need to get operating leverage, in return spending down to the 50% to 60% of revenue growth. But I would say that probably for the next 4 to 5 quarters, maybe about 6, we'll probably be above that level.

是的，我認為在這裡會有一段短暫的時間，我也不確定一定會是幾個季度。但在我們爬坡並認證這兩座晶圓廠期間，我們會高於我們模型所假設的水準。不過我們非常清楚需要取得營運槓桿，並把支出拉回到相當於營收成長的50%到60%。但我會說，接下來大概4到5個季度，可能到6個季度，我們大概會高於那個水準。

The next question comes from the line of Rick Schafer with Oppenheimer.

下一個問題來自Oppenheimer的Rick Schafer。

I guess, maybe I'll start off with the e-commerce question. Maybe an update on the progress there with that effort? I know you're already adding some customers. So I'm just curious what feedback has been? And maybe if you could quantify what that opportunity looks like for you guys over the next couple of years? Put some kind of a -- I know that's tough. But put some kind of -- quantify it somehow, I guess, give us a TAM kind of what you -- how you guys look at that.

我想也許我先從電商的問題開始。能否更新一下那項工作的進展？我知道你們已經在新增一些客戶。所以我想了解目前的回饋如何？另外，如果可以的話，能否量化一下未來幾年這個機會對你們看起來會是什麼樣子？我知道這很難。但還是希望你們能用某種方式量化一下，我想要一個TAM之類的概念，了解你們怎麼看這件事。

Well, I can answer you. The first question first. The website is up, and it still looks pretty shitty, but we will improve it later. Okay? And we do have orders come from the -- our own website. And the programmable modules that we're pushing out there and this -- that -- trajectories -- okay, we can be -- we cannot even predict. And because this is almost nothing to something. And we look at the numbers, and in the last couple of months, is better than I expected. And so we keep evaluating. So stay tuned.

好，我可以回答你。先回答第一個問題。網站已經上線了，現在看起來還是挺糟的，但之後我們會改善。好嗎？而且我們確實有訂單是從——我們自己的網站來的。至於我們正在推的可程式化模組，以及這——那——成長軌跡——好吧，我們甚至無法預測。因為這幾乎是從零到有。我們看數字，過去幾個月比我預期的更好。所以我們會持續評估。敬請期待。

Okay but for now, I assume, you're -- we're keeping it out of the model for now, I guess.

了解，但就目前而言，我想你們——我們暫時還是不把它納入模型裡，對吧？

Yes, we keep out of that model.

是的，我們把它排除在那個模型之外。

We kept revenue expectations -- we made a conscious effort to keep them low for '18 and '19. And really what we're trying to do is get up to speed on what it takes to market and successfully manage the e-commerce experience. And during this time, we'll also be adding more products and getting traction with the customer acceptance.

我們把營收預期維持——我們刻意把2018年和2019年的預期壓低。我們真正想做的是先把如何行銷、以及如何成功管理電商體驗所需的能力建立起來。在這段期間，我們也會增加更多產品，並在客戶接受度上取得進展。

Got it. Then maybe switch gears to 48-volt core power. I know in the next couple of years, you guys have talked about 48-volt coming to GPU and CPU. I guess, maybe if you could walk us through what the timing looks like of that. Who are you likely to compete with there? I think GPU probably ramps before CPU. So maybe what has to happen for that to go?

了解。那我們換個話題談48伏核心電源。我知道你們談過未來幾年48伏會導入GPU和CPU。我想請你們帶我們走一遍這件事的時程大概會是什麼樣子。你們在那裡可能會跟誰競爭？我想GPU可能會比CPU更早放量。所以要讓這件事發生，需要哪些條件？

Yes. We expect it hitting the mainstream in the early or mid-2019. And we have been looking at -- we have been developing product for -- in the last 3 years. And we see this as imminent solutions for the future servers. And I can't answer who do we compete with, because there's no such solution out there. And maybe there's a few. And our solution will be mass produced and easy to use. And we see -- in the last few years, we see -- we have many design wins.

是的。我們預期它會在2019年初或年中進入主流。而且我們在過去3年一直在——一直在開發相關產品。我們把這視為未來伺服器迫在眉睫的解決方案。至於我們會跟誰競爭，我無法回答，因為市面上沒有那樣的解決方案。也許有少數幾個。而我們的解決方案將可量產且易於使用。而且我們看到——在過去幾年，我們有很多設計導入（design wins）。

And just to add real quickly, as Michael said that we've had this project under development for 3 years. And I think that there are a couple of data points in the market today that validate the timing of having our solution released in the 2019 was a good set of circumstances for us. We're in the right place at the right time with the 48-volt solution.

我再很快補充一下，正如Michael所說，我們這個專案已經開發了3年。我認為目前市場上有幾個數據點，驗證了我們在2019年推出解決方案的時點，對我們而言是一個很好的情勢組合。在48伏解決方案上，我們是天時地利。

Got it. And then just a quick clarification question, if I could, on 300 millimeter. Where do you guys stand today? I mean, do you have any design wins on 300 millimeter? Or is that still on the comm? And then maybe if you could update us on the ramp of any design wins at 55 or 65 nanometer?

了解。再請教一個關於300毫米的快速釐清問題。你們目前進展到哪裡了？我是說，你們在300毫米上有任何設計導入嗎？還是那仍然在——（溝通/規劃）階段？另外也請更新一下，在55或65奈米的任何設計導入，其放量進度如何？

These are some of the stuff that we're hitting in the market very, very soon, somewhere the -- and I don't know it is the first shipment or we certainly will start to sampling it.

這些是我們很快、非常非常快就會在市場上推進的一些事情，大概在——我也不確定是首次出貨，或是我們肯定會開始提供樣品。

Slightly different development tracks where the 55 effort will probably have design wins early in 2019 and the 300 millimeter will probably be more out in the 2020.

稍有不同的開發路徑，其中 55 的專案可能會在 2019 年初較早取得設計導入（design win），而 300 毫米則可能要到 2020 年左右才會更明顯。

Your next question comes from William Stein with SunTrust.

下一個問題來自 SunTrust 的 William Stein。

I wanted to return to the comment about hedging for potential upside in the second half. Is there a particular end market that, that's weighted towards? And likewise, would you anticipate sort of the variability and potential upside to be more of a Q3 event? Or is there something special in Q4 that we should think about? And then I have a follow-up, if I can.

我想回到你們提到下半年為潛在上行做避險（hedging）的評論。是否有特定的終端市場是主要權重所在？同樣地，你們是否預期這種波動性與潛在上行會比較像是第三季的事件？或者第四季有什麼特別之處是我們應該納入考量的？然後如果可以的話，我還有一個追問。

Yes, I think that as we've said on the call that there is really a 3 or 4 key areas that are driving a lot of our business. And within that, what we've tried to do is we're working within a range of expectations for any one of those. And generally, what we've done is we've modeled in our revenue expectations the midpoint or below, but we've provided the inventory at the upper end of the range that has been provided to us by the OEM or from the end customer. So it really could be any one of the opportunities in computing and storage or automotive in particular where we could experience a pop.

是的，我想正如我們在電話會議中所說，確實有 3 到 4 個關鍵領域正在驅動我們相當大一部分的業務。在此之中，我們嘗試做的是：針對其中任何一個領域，我們都在一個預期區間內運作。一般而言，我們在營收預期模型中採用的是中位數或略低，但我們會依 OEM 或終端客戶提供給我們的區間上緣來準備庫存。因此，真正出現跳升（pop）的可能性，可能來自運算與儲存，或特別是汽車領域的任何一個機會。

I appreciate that. And maybe backing up, you offered initial take on e-commerce. I wonder if there is any change in the customer traction relative to the e.Motion product?

了解，謝謝。再往前一步，你們先前對電商（e-commerce）提供了初步看法。我想知道，相較於 e.Motion 產品，客戶牽引力（traction）是否有任何變化？

It's a -- E.Motion product, then a lot of them I see we're rather selling the ICs and we're selling the total solution. And it's a lot better way, a lot easier way in -- to generating revenues or to service our customers that we learned from -- I learned it from the last couple of years. And so I see this is the same kind of (inaudible) to the same kind of things.

這個——e.Motion 產品方面，我看到我們很多時候其實是在賣 IC，也是在賣整體解決方案。而這是一種更好的方式、也更容易——用來創造營收或服務客戶，這是我從——過去幾年學到的。所以我認為這是同一類型的（聽不清）到同一類型的事情。

And on the e.Motion, that is starting to ramp very nicely right now. And we've seen a lot of design wins that we have not just in '18 and '19, but even '20 and '21 that we're already going to be benefiting from. So that is an initiative that we started in earnest about 4 years ago. And that's how long it takes for these things to ramp. Whereas the e-commerce platform and the field programmability offered on it, we're just in the very early stages of that.

至於 e.Motion，目前正開始非常順利地放量（ramp）。我們已經看到很多設計導入，不僅在 2018、2019 年，甚至 2020、2021 年我們都已經會從中受益。所以這是一項我們大約在 4 年前開始認真推動的計畫。而這類事情要放量就是需要這麼長的時間。相較之下，電商平台以及其上提供的現場可程式化（field programmability），我們才剛處於非常早期的階段。

Your next question comes from Tore Svanberg with Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

First question. The 12-inch fabs, I understand the OpEx on top of it. But how should I think about that impacting your gross margins over time, because I would think that, that could potentially be pretty accretive to your gross margin?

第一個問題。關於 12 吋晶圓廠（fabs），我理解其上會有營運費用（OpEx）。但我該如何看待它對你們長期毛利率的影響？因為我會認為這可能對毛利率有相當正面的增益（accretive）。

Yes, Tore, okay, you've covered us for long times. And you know that. Our pattern is that we move from early days to go to 6-inch and then we go to 8-inch. 8-inch, with the first 8-inch was a 0.35-micron fab. And we -- until these 180 nanometers fabs depreciated further, then we move there, okay? So each step we move to a new foundry or new more advanced fab that it doesn't impact the model immediately. And so those 12-inch fabs are still expensive. But 3, 4 years later, they will be cheaper. And so we just follow our history. We repeat and repeat the same thing, and by the time, we have a superior technologies and good cost.

是的，Tore，好，你長期追蹤我們。你也知道。我們的模式是：早期先到 6 吋，然後再到 8 吋。8 吋的第一座是 0.35 微米的晶圓廠。而我們——直到那些 180 奈米的晶圓廠折舊再進一步攤提之後，我們才轉移過去，好嗎？所以每一步我們移轉到新的代工廠或更先進的新廠時，並不會立刻影響模型。而這些 12 吋晶圓廠目前仍然昂貴。但 3、4 年之後，它們會變得更便宜。所以我們只是遵循我們的歷史。我們一再重複同樣的事情，而到那個時候，我們就會擁有更優越的技術與良好的成本。

Very good. And I believe last quarter, your ASPs were up sort of in the high single digits. Is there a number you could share with us for this quarter?

很好。我記得上季你們的 ASP 大概上升到高個位數百分比。這一季你們能分享一個數字給我們嗎？

Not at this point. What I can tell you is that the ASP delta, it has a lot to do with our mix of business. And many of these new opportunities that we're going into have ASPs that are 2, 3 and 4x what some of our legacy products, particularly in consumer, used to be. So I think that you're going to see an upward bias as the higher percent of our business is with these newer opportunities.

目前還不行。我能告訴你的是，ASP 的變動（delta）很大程度取決於我們的業務組合（mix）。而我們正在切入的許多新機會，其 ASP 是我們部分既有產品（特別是消費性產品）過去的 2、3 甚至 4 倍。所以我認為，隨著這些較新機會在我們業務中的占比提高，你會看到 ASP 有向上的偏向。

Very good. And just last question on automotive, it sounds like there could be some pretty major upside there next -- in the second half of the year. If we think about the constant you have in the car so far, I think it's been primarily in lighting and also in some of the USB power, stuff like that. Is there some new incremental constant in other areas that could come already in the second half of this year?

很好。最後一個關於汽車的問題，聽起來今年下半年那邊可能會有相當大的上行空間。如果我們看你們目前在車上的既有內容（content），我想主要是在照明，以及一些 USB 供電之類的。是否在其他領域有新的增量內容，可能在今年下半年就開始出現？

Actually, as far as the technology that we've introduced into automotive, it really is centered around the infotainment, the USB-C ports and body controls. Interesting, the lighting, we're just at the very early stages of that. And so over the course of the next 12 months, I think you're going to see it ramping in the body controls and then little bit after that in lighting.

其實，就我們導入汽車的技術而言，主要集中在車載資訊娛樂（infotainment）、USB-C 連接埠以及車身控制（body controls）。有趣的是，照明方面我們才剛處於非常早期的階段。因此在接下來 12 個月內，我認為你會看到車身控制先開始放量，然後再過一點時間才會輪到照明。

Our next question comes from the line of Alex Vecchi with William Blair.

下一個問題來自 William Blair 的 Alex Vecchi。

I guess, just moving back to the increased expenses on the fabs, Bernie, you said that would go on for 4 to 6 quarters. And you guys just gave a 2021 sort of operating margin target at your Analyst Day. I assume you're still -- those targets are still intact and these increased expenses were obviously planned at that point?

我想回到晶圓廠費用增加這件事，Bernie，你說這會持續 4 到 6 個季度。而你們在分析師日剛給了 2021 年的營業利益率目標。我猜這些目標仍然——仍然有效，而且這些增加的費用在當時顯然已經納入規劃了？

Yes. What we have been looking to do and we've been sort of trying to provide some soft guidance on both the timing and order of magnitude. And now we're starting to see the -- those investments translate into the P&L here. But the overall commitment to manage our core business outside of -- I'm not going to describe these as onetime costs necessarily, but this is project-related and those will wind down. And that will allow us to get to the targets that we've set for ourselves.

是的。我們一直在做的是，嘗試就時程與規模提供一些較為溫和的指引（soft guidance）。而現在我們開始看到——這些投資在損益表（P&L）上反映出來。但整體而言，我們仍致力於管理我們的核心業務；此外——我不會把這些成本必然描述為一次性成本，但它們是專案相關的，並且會逐步下降。而這將使我們能達成我們為自己設定的目標。

Well, here we see the opportunity to grow and we want to -- we will grow in the next 2, 3 years and that we have lot of opportunities. And so we made a decision so we're going to increase it and to increase on the expenditures, the investments rather in a new fab so that we don't have -- we won't have capacity issues, at the same times, keep our technology advance forward. And just look at us, last year -- early this year, MPS did not have capacity constraint. We grow as normal. So we spend our money wisely. And as long as we grow -- again, I only care of the top line and EPS. I care the rest of it less.

嗯，在這裡我們看到成長的機會，而且我們希望——我們會在接下來 2、3 年成長，並且我們有很多機會。因此我們做了決定，要把它提高，也就是提高支出，更確切地說是增加在新晶圓廠的投資，這樣我們就不會——就不會有產能問題，同時也能讓我們的技術持續往前推進。而且你看看我們，去年——今年年初，MPS 並沒有產能限制。我們照常成長。所以我們很明智地花錢。只要我們成長——再說一次，我只在乎營收（top line）和 EPS。其他的我就沒那麼在乎。

And then as far as characterizing what we provided at the Analyst Day, those are guidelines. So for example, in the revenue, we want to be able to grow at 20%. And in this case, with the midpoint of the guidance that we've offered for Q3 as well as what we've done in Q1 and Q2, we're several percentage points above that this year. So you really have to look at the guidelines that we've offered in the business model. Sometimes we'll be above it. Sometimes we'll be below it. And the thing to focus on is we only provide guidance one quarter ahead at a time.

然後就我們在分析師日所提供內容的性質而言，那些都是指引。例如在營收方面，我們希望能以 20% 的速度成長。而在這個情況下，結合我們對第三季所提供指引的中位數，以及第一季和第二季的表現，今年我們高出那個水準好幾個百分點。所以你真的必須看我們在商業模式中所提供的那些指引。有時候我們會高於它。有時候我們會低於它。而需要聚焦的一點是：我們一次只提供往前一季的指引。

Well, to be fair, okay, we grow less, okay, we'll spend less. And now -- and we're accelerating our growth. We cannot grow on the -- in the thin air.

嗯，公平地說，好吧，我們成長少一些，好吧，我們就少花一些。而現在——我們正在加速成長。我們不可能在沒有基礎的情況下成長。

Understood. Are you guys seeing sort of the seasonality of your business change as you become more broad-based? I mean, obviously, your Q3 sort of in line with the normal seasonal. I know you don't guide Q4. But given some of the upside opportunities you guys have been describing, how should we sort of think about seasonality as we look out into the out year as well?

了解。隨著你們的業務變得更廣泛，你們是否看到業務的季節性有所改變？我的意思是，顯然你們第三季大致符合正常的季節性。我知道你們不提供第四季指引。但考量到你們描述的一些上行機會，當我們展望未來年度時，應該如何看待季節性？

Yes, I'd say that by and large, we are looking to maintain seasonality the way we've been historically. Now having said that, Q1 came in higher. There is a lower step-down from Q4 to Q1 than we had experienced. And as a result of that, the increase from Q2-- from Q1 was also lower than we've historically done by about 3 percentage points. But then in the guide that we've given here for Q3, that's almost right down in the middle of how we performed in the past.

是的，我會說整體而言，我們希望維持過去歷史上的季節性模式。不過話說回來，第一季表現更高。從第四季到第一季的下滑幅度比我們過去經歷的要小。因此，從第一季到第二季的增幅也比我們歷史水準低了大約 3 個百分點。但在我們這次給出的第三季指引中，幾乎正好落在我們過去表現的中間值。

Yes, our seasonality is changed. In the last year -- as business changed. And also, we are in a higher growth period. And so the last year, we have a 4 consecutive -- I think -- is it right?

是的，我們的季節性已經改變了。在去年——隨著業務改變。而且我們也處在較高成長的階段。所以去年我們有連續 4 個——我想——是這樣嗎？

Yes.

是的。

Four consecutive growth, okay, never happened since 2004, 2005. Okay? And so I can't tell you what's our seasonality anymore.

連續四季成長，好嗎，這自 2004、2005 年以來從未發生過。好嗎？所以我已經沒辦法再告訴你我們的季節性是什麼了。

(Operator Instructions) Our next question comes from the line of Matt Ramsay with Cowen.

(接線生指示) 我們的下一個問題來自 Cowen 的 Matt Ramsay。

This is Josh Buchalter on behalf of Matt. First, I'd just like to dig a little bit more on the storage and compute bucket. Is there any more granularity you could provide on some of the moving parts within the quarter and maybe the guide, given your large socket wins there?

我是 Josh Buchalter，代表 Matt 提問。首先，我想再深入一點談談儲存與運算這個類別。鑑於你們在那裡有很大的插槽（socket）勝出，能否就本季以及可能的指引中一些變動因素提供更細的拆解？

It's -- again, it's a story of -- we have too many riches because all of the major product lines that we've gone after in the computing and the storage are doing very, very well. And in the guide for Q3, that just reflects the continuation. And so it's a situation where a lot of the technologies that we invested in developing are now coming into the market. So if you focus on the servers, for example, that transition has rolled out almost identical to how we expected it. And right now, we don't see any headwinds. In fact, it's continuation of tailwinds.

這——再說一次，這是一個——我們好到有點「太富足」的故事，因為我們在運算與儲存領域所鎖定的所有主要產品線表現都非常、非常好。而第三季的指引只是反映這種延續。因此，這是一種我們投入研發的許多技術現在正進入市場的情況。例如如果你聚焦在伺服器，那個轉換的推出幾乎與我們預期完全一致。而目前我們沒有看到任何逆風。事實上，這是順風的延續。

Understood. And then you provide an update on e.Motion and e-commerce. I was hoping maybe you could provide the same on field programmability?

了解。另外你們有提供 e.Motion 和電子商務的更新。我希望你們也能就現場可程式化（field programmability）提供同樣的更新？

No. These are tied together. E-commerce, of course, is wider than we do. Some of the product is not programmable. And currently, I think that we sell most of our product, it's kind of fixed -- and because the website was late. And now we have the capability to reprogram the product, reconfigure the product. So these are the same to me, e-commerce and field programmable.

不。這些是綁在一起的。當然，電子商務的範圍比我們所做的更廣。有些產品不是可程式化的。而目前我認為我們賣的大多數產品有點像是固定的——因為網站上線得晚。而現在我們具備重新程式化產品、重新配置產品的能力。所以對我來說，這兩者是一樣的：電子商務與現場可程式化。

And I think that as we look at the continuing demands in this area is that we're going to take even larger number of our product catalog today and reengineer it around field programmability, which offers the -- our customers the best ease of use and time to market.

而且我認為，隨著我們看到這個領域持續的需求，我們將把目前產品目錄中更大比例的產品，圍繞現場可程式化重新設計，這能為——我們的客戶提供最佳的易用性與上市時間。

I'm showing no further questions in queue at this time. I'd like to turn the call back to management for closing remarks.

我目前看到隊列中沒有其他問題。我想把電話交回管理層做結語。

I'd like to thank you all for joining us in this conference call and look forward to talking to you again during our third conference call, which will likely be at the end of October. Thank you, and have a nice day.

感謝各位參加本次電話會議，也期待在我們第三次電話會議時再與各位交流，時間很可能在十月底。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, and you may now disconnect. Everyone, have a great day.

各位女士、先生，感謝您參與今天的電話會議。本節目到此結束，您現在可以掛線。各位，祝您有美好的一天。