芯源系統 (MPWR) 2018 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Fourth Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference is being recorded. I'd now like to introduce your host for today's conference, Mr. Bernie Blegen, Chief Financial Officer. Sir, please go ahead.

各位女士、先生，大家好，歡迎參加 Monolithic Power Systems 2018 年第四季財報電話會議。(接線員指示) 提醒各位，今天的會議將被錄音。現在我想介紹今天會議的主持人：財務長 Bernie Blegen 先生。先生，請開始。

Good afternoon, and welcome to the Fourth Quarter 2018 Monolithic Power Systems Conference Call. 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.

各位下午好，歡迎參加 Monolithic Power Systems 2018 年第四季電話會議。在今天的電話會議過程中，我們將發表涉及風險與不確定性的前瞻性陳述與預測，這些因素可能導致實際結果與管理層目前的觀點與預期存在重大差異。請參閱今日發布之財報新聞稿中所載的安全港聲明。

Risks, uncertainties and other factors that could cause the 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, 2018, and Form 10-Q filed on November 2, 2018, both of which are accessible through our website, www.monolithicpower.com. MPS assumes no obligation to update the information provided on today's call.

可能導致實際結果出現差異的風險、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 提交的文件中加以說明，包括 2018 年 3 月 1 日提交的 Form 10-K 與 2018 年 11 月 2 日提交的 Form 10-Q；上述文件可透過我們的網站 www.monolithicpower.com 取得。MPS 不承擔更新今日電話會議所提供資訊的任何義務。

We will be discussing gross margin, operating expenses, 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.

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、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品，亦不應被視為優於 GAAP 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 Q4 2017, Q3 2018 and Q4 2018 earnings releases as well as to the reconciling tables that are posted on our website.

我們已在向 SEC 提交的財報新聞稿中，提供一份表格說明非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節。我也建議投資人參閱 2017 年第四季、2018 年第三季與 2018 年第四季的財報新聞稿，以及張貼於我們網站上的調節表。

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.

同時提醒各位，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，並附上今日稍早向 SEC 提交的財報新聞稿。

I would like to begin today's comments with a few highlights of what was a very successful year for MPS. For the full year 2018, MPS achieved record revenue of $582.4 million, 23.7% higher than revenue from 2017. The $111 million increase in year-over-year revenue was the largest annual gain in the company's history. The 23.7% annual increase was the highest growth rate for MPS since the company redirected its focus in 2010 to the industrial, cloud computing, automotive and high-end consumer markets. Although we cannot escape the current macroeconomic conditions, we see momentum in these segments continuing strong for the next several years. This was the sixth consecutive year of double-digit growth.

我想先以幾項重點來開場，回顧 MPS 非常成功的一年。2018 全年，MPS 創下 5.824 億美元的營收新高，較 2017 年營收成長 23.7%。年增 1.11 億美元的營收增量，為公司史上最大的年度增幅。23.7% 的年度增幅，是自 2010 年公司將重心轉向工業、雲端運算、車用與高階消費市場以來的最高成長率。儘管我們無法擺脫當前的總體經濟環境，我們仍看到這些領域的動能在未來數年將持續強勁。這是連續第六年達成兩位數成長。

2018 was a significant year for MPS. On the technology front, we've widened our lead with BCD5 solidly in volume production and with the development of BCD6, a 55-nanometer process designed on a 12-inch wafer. Both of these advancements will significantly increase our product's functionality, improve energy efficiency, reduce our solution size, ease our customer's adoption efforts and keep our product cost competitive.

2018 年對 MPS 而言是重要的一年。在技術方面，隨著 BCD5 穩健進入量產，以及開發 BCD6（採用 12 吋晶圓設計的 55 奈米製程），我們進一步擴大領先優勢。這兩項進展將大幅提升我們產品的功能性、改善能源效率、縮小解決方案尺寸、降低客戶導入門檻，並維持具競爭力的產品成本。

In addition, we are increasing production capacity both in 12-inch and 8-inch wafer in anticipation of future revenue growth.

此外，我們也正在提升 12 吋與 8 吋晶圓的產能，以因應未來營收成長的需求。

On the customer front, MPS penetrated a number of new Tier 1 companies in the automotive and cloud server market, generating initial and meaningful revenue. More importantly, we are codeveloping next-generation products with a number of these Tier 1 companies that will revolutionize their industries. We expect these partnerships to drive substantial technological advancements and represent an important source of MPS' future revenue growth.

在客戶方面，MPS 成功打入多家車用與雲端伺服器市場的新一級（Tier 1）公司，並帶來初期且具意義的營收。更重要的是，我們正與其中多家 Tier 1 公司共同開發下一代產品，將為其產業帶來革命性變革。我們預期這些合作夥伴關係將推動顯著的技術進步，並成為 MPS 未來營收成長的重要來源。

A few examples include: developing specific leading-edge system solutions using QSMod technologies for GPU-based artificial intelligence and machine learning applications; using MPS' 48-volt QSMod technology for both cloud-based and automotive applications; working with automotive companies to develop specific solutions for smart driving systems and unique riding applications with a 2020 target for market introduction; developing a mechanical relay replacement servicing the IoT and automotive markets using MPS' high-current, high density process technology for improved reliability in a compact form; and we completed the integration of high-current programmable power modules for communications applications, such as 5G networks. The target market applications to these modules are base stations and switchers, which require compact and reliable solutions.

幾個例子包括：運用 QSMod 技術，為以 GPU 為基礎的人工智慧與機器學習應用開發特定的先進系統解決方案；將 MPS 的 48 伏 QSMod 技術同時用於雲端與車用應用；與車廠合作，為智慧駕駛系統與獨特的乘用應用開發特定解決方案，目標於 2020 年導入市場；運用 MPS 的大電流、高密度製程技術，開發用於物聯網與車用市場的機械繼電器替代方案，以在緊湊外形下提升可靠性；以及我們已完成用於通訊應用（如 5G 網路）之大電流可程式化電源模組的整合。這些模組的目標市場應用為基地台與交換器（switchers），其需要緊湊且可靠的解決方案。

In addition to these exciting codevelopment projects, 2018 was important as we launched our e-commerce website allowing engineers to design their own customized solutions from their desktop. This catalog of programmable solutions will greatly enhance our customer's time to market, lower their total cost of ownership and optimize the efficiency of their designs.

除了這些令人振奮的共同開發專案外，2018 年也很重要，因為我們推出了電子商務網站，讓工程師可在桌面端自行設計客製化解決方案。這套可程式化解決方案目錄將大幅縮短客戶的上市時間、降低其總持有成本，並最佳化其設計效率。

Now let's look at our full year 2018 revenue by market segment compared with 2017. Computing and storage, up 57.9%; automotive up 48.6%; industrial, up 40.7%; and communications revenue, up 11.0%. Consumer revenue was down 3.0%.

接著我們來看 2018 全年各市場區隔的營收，並與 2017 年比較。運算與儲存成長 57.9%；車用成長 48.6%；工業成長 40.7%；通訊營收成長 11.0%。消費性營收下滑 3.0%。

Full year computing and storage revenue grew $58.3 million to $159.1 million in 2018. This increase primarily reflected strong sales growth for cloud computing, SSD storage, high-end notebooks and initial GPU power management sales. Computing and storage revenue represented 27.3% of MPS' total revenue in 2018 compared with 21.4% in 2017.

2018 全年運算與儲存營收增加 5,830 萬美元，達到 1.591 億美元。此增幅主要反映雲端運算、SSD 儲存、高階筆電以及初期 GPU 電源管理產品的強勁銷售成長。2018 年運算與儲存營收占 MPS 總營收的 27.3%，相較 2017 年的 21.4%。

Automotive revenue grew $26.2 million to $80.1 million in 2018. This growth primarily represented increased sales of infotainment, safety and connectivity application products. Automotive represented 13.8% of MPS' full year 2018 revenue compared with 11.4% in 2017.

2018 年車用營收增加 2,620 萬美元，達到 8,010 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。車用營收占 MPS 2018 全年營收的 13.8%，相較 2017 年的 11.4%。

Industrial revenue grew $25.6 million to $88.5 million in 2018. This growth reflected sales for applications in power sources, security and industrial meters. Industrial revenue represented 15.2% of MPS' full year 2018 revenue compared with 13.4% in 2017.

2018 年工業營收增加 2,560 萬美元，達到 8,850 萬美元。此成長反映電源供應、安全與工業儀表等應用的銷售增加。2018 年工業營收占 MPS 全年營收的 15.2%，相較 2017 年的 13.4%。

Communications revenue grew $7.0 million to $70.6 million. This improvement was primarily due to higher sales of our legacy home router and wireless gateway products. More importantly, though, we see initial ramping in the 5G market segment. Communications revenue represented 12.1% of our 2018 revenue compared with 13.5% in 2017.

通訊營收增加 700 萬美元，達到 7,060 萬美元。此改善主要來自我們既有的家用路由器與無線閘道器產品銷售提升。不過更重要的是，我們看到 5G 市場區隔正開始初期放量。通訊營收占我們 2018 年營收的 12.1%，相較 2017 年的 13.5%。

Switching to Q4. While we started to see the impact of macroeconomic headwinds in Q4, MPS still had a record fourth quarter with revenue of $153.5 million, 4.0% lower than the revenue generated in the third quarter of 2018 but 18.6% higher than the comparable quarter of 2017.

切換到第四季。雖然我們在第四季開始看到總體經濟逆風的影響，MPS 仍創下破紀錄的第四季，營收達 1.535 億美元，較 2018 年第三季的營收低 4.0%，但較 2017 年同期高 18.6%。

By market segment, revenue for industrial grew 66.6% over the same period 2017; computing and storage grew 63.2%; and automotive grew 40.2%. Communications revenue -- communications grew 27.1% due primarily to increased revenue from MPS' legacy home router and wireless gateway products. Fourth quarter revenue for consumer fell 25.9% from the prior year.

按市場區隔來看，工業市場營收較 2017 年同期成長 66.6%；運算與儲存成長 63.2%；汽車成長 40.2%。通訊營收——通訊成長 27.1%，主要由於 MPS 傳統家用路由器與無線閘道器產品營收增加。第四季消費性產品營收較前一年下降 25.9%。

MPS experienced continued weakness in high-volume consumer-related businesses with especially the soft demand in the greater China region. In the fourth quarter, MPS continued to see strong design win momentum. However, many customers, concerned about the economic outlook and trade policies, delayed their production ramps for new products in automotive, computing and industrial, which resulted in a less desirable sales product mix.

MPS 在高出貨量的消費相關業務仍持續疲弱，尤其是大中華地區需求偏軟。在第四季，MPS 持續看到強勁的設計導入（design win）動能。然而，許多客戶因擔憂經濟前景與貿易政策，延後汽車、運算與工業新產品的量產爬坡，導致銷售產品組合不如預期。

As a result, fourth quarter 2018 non-GAAP gross margin was 55.6%, 50 basis points lower than the third quarter of 2018 and 10 basis points lower than the fourth quarter of 2017.

因此，2018 年第四季非 GAAP 毛利率為 55.6%，較 2018 年第三季低 50 個基點，亦較 2017 年第四季低 10 個基點。

Our non-GAAP operating income was $46.6 million compared to $49.2 million reported in the prior quarter and $38.2 million reported in the fourth quarter of 2017. Fourth quarter 2018 GAAP gross margin was 55.1%, 50 basis points lower than the third quarter of 2018 but 10 basis points higher than the fourth quarter of 2017.

我們的非 GAAP 營業利益為 4,660 萬美元，較上一季的 4,920 萬美元為低，但高於 2017 年第四季的 3,820 萬美元。2018 年第四季 GAAP 毛利率為 55.1%，較 2018 年第三季低 50 個基點，但較 2017 年第四季高 10 個基點。

Our GAAP operating income was $33.1 million compared to $33.5 million reported in the third quarter of 2018 and $25.1 million reported in the fourth quarter of 2017.

我們的 GAAP 營業利益為 3,310 萬美元，較 2018 年第三季的 3,350 萬美元略低，但高於 2017 年第四季的 2,510 萬美元。

Let's review our operating expenses. Our GAAP operating expenses were $51.5 million in the fourth quarter compared with $55.5 million in the third quarter of 2018 and $46.1 million in the fourth quarter of 2017. Our non-GAAP fourth quarter 2018 operating expenses were $38.7 million, down from the $40.5 million we spent in the third quarter of 2018 and up from the $33.9 million reported in the fourth quarter of 2017.

接著檢視我們的營業費用。第四季 GAAP 營業費用為 5,150 萬美元，較 2018 年第三季的 5,550 萬美元為低，但高於 2017 年第四季的 4,610 萬美元。2018 年第四季非 GAAP 營業費用為 3,870 萬美元，低於 2018 年第三季的 4,050 萬美元，但高於 2017 年第四季的 3,390 萬美元。

On both a GAAP and a non-GAAP basis, fourth quarter litigation expenses were $409,000 compared with $343,000 expense in Q3 2018 and a $340,000 expense in Q4 2017. The difference between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are stock compensation expense and income or loss from an unfunded deferred compensation plan.

無論以 GAAP 或非 GAAP 口徑計算，第四季訴訟費用為 40.9 萬美元，較 2018 年第三季的 34.3 萬美元及 2017 年第四季的 34.0 萬美元為高。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，以及未提撥資金之遞延補償計畫所產生的收益或損失。

Total stock compensation expense, including $504,000 charged to cost of goods sold for the fourth quarter of 2018, was $14.8 million compared with $14.8 million recorded in the third quarter of 2018.

2018 年第四季股票酬勞費用合計為 1,480 萬美元（其中 50.4 萬美元計入銷貨成本），與 2018 年第三季認列的 1,480 萬美元相同。

Switching to the bottom line. Fourth quarter 2018 GAAP net income was $27.6 million or $0.61 per fully diluted share compared with $0.71 per share in the third quarter of 2018 and $0.27 per share in the fourth quarter of 2017. Q4 non-GAAP net income was $44.6 million or $0.99 per fully diluted share compared with $1.06 per share in the third quarter of 2018 and $0.82 per share in the fourth quarter of 2017. Fully diluted shares outstanding at the end of Q4 2018 were 45.1 million.

接著看最終獲利。2018 年第四季 GAAP 淨利為 2,760 萬美元，或完全稀釋後每股 0.61 美元；相較之下，2018 年第三季為每股 0.71 美元，2017 年第四季為每股 0.27 美元。第四季非 GAAP 淨利為 4,460 萬美元，或完全稀釋後每股 0.99 美元；相較之下，2018 年第三季為每股 1.06 美元，2017 年第四季為每股 0.82 美元。2018 年第四季末完全稀釋後流通在外股數為 4,510 萬股。

Now let's look at the balance sheet. Cash, cash equivalents and investments were $380.5 million at the end of the fourth quarter of 2018 compared to $353.1 million at the end of the third quarter of 2018.

現在來看資產負債表。截至 2018 年第四季末，現金、約當現金及投資為 3.805 億美元，較 2018 年第三季末的 3.531 億美元增加。

For the quarter, MPS generated operating cash flow of about $47.6 million compared with Q3 2018 operating cash flow of $52.2 million. Fourth quarter 2018 capital spending totaled $4.5 million.

本季 MPS 產生的營運現金流約為 4,760 萬美元，較 2018 年第三季的 5,220 萬美元為低。2018 年第四季資本支出合計為 450 萬美元。

Accounts receivable ended the fourth quarter of 2018 at $55.2 million or 33 days of sales outstanding compared with the $59.9 million or 34 days reported at the end of the third quarter of 2018 and the $38.0 million or 27 days reported in the fourth quarter of 2017.

2018 年第四季末應收帳款為 5,520 萬美元，或應收帳款週轉天數（DSO）33 天；相較之下，2018 年第三季末為 5,990 萬美元或 34 天，2017 年第四季為 3,800 萬美元或 27 天。

Our internal inventories at the end of the fourth quarter of 2018 were $136.4 million, down slightly from the $136.8 million at the end of the third quarter of 2018. Days of inventory rose to 180 days at the end of Q4 2018 from the 175 days at the end of third quarter of 2018.

截至 2018 年第四季末，我們的內部存貨為 1.364 億美元，較 2018 年第三季末的 1.368 億美元略降。存貨天數於 2018 年第四季末上升至 180 天，高於 2018 年第三季末的 175 天。

I would now like to turn to the outlook. First, MPS is announcing a 33% increase in our quarterly dividend to $0.40 per share from $0.30 per share for shareholders of record as of March 29, 2019. We are forecasting Q1 2019 revenue in the range of $138 million to $144 million.

接下來我想談談展望。首先，MPS 宣布將季度股利提高 33%，由每股 0.30 美元提高至每股 0.40 美元；股權登記日為 2019 年 3 月 29 日。我們預估 2019 年第一季營收介於 1.38 億至 1.44 億美元。

We also expect the following: GAAP gross margin in the range of 54.8% to 55.4%; non-GAAP gross margin in the range of 55.3% to 55.9%; total stock-based compensation expense at $17.6 million to $19.6 million, including approximately $600,000 that would be charged to cost of goods sold; GAAP R&D and SG&A expenses between $55 million and $59 million; non-GAAP R&D and SG&A expense to be in the range of $38 million to $40 million. This estimate excludes stock compensation and litigation expenses.

我們也預期如下：GAAP 毛利率介於 54.8% 至 55.4%；非 GAAP 毛利率介於 55.3% 至 55.9%；股票基礎酬勞費用合計為 1,760 萬至 1,960 萬美元，其中約 60 萬美元將計入銷貨成本；GAAP 研發與銷售、一般及行政（SG&A）費用介於 5,500 萬至 5,900 萬美元；非 GAAP 研發與 SG&A 費用介於 3,800 萬至 4,000 萬美元。此估計不包含股票酬勞與訴訟費用。

Our income is -- our other income is expected to be in the range of $1.4 million to $1.6 million before foreign exchange gains or losses. Fully diluted shares to be in the range of 44.7 million to 45.7 million shares.

我們的其他收入預期在扣除外匯損益前介於 140 萬至 160 萬美元。完全稀釋後股數預期介於 4,470 萬至 4,570 萬股。

In conclusion, despite uncertainty in the macroeconomy, we expect to continue winning market share in the cloud computing, automotive and telecommunications market. We believe the future is bright. I'll now open the phone lines for questions.

總結來說，儘管總體經濟存在不確定性，我們預期將持續在雲端運算、汽車與電信市場取得市占率。我們相信未來前景光明。現在我將開放電話線供提問。

(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。

Michael or Bernie, just wanted to get your view on the macro environment. You guys have a lot of company specifics where you can take share, but you're not immune if the tide's rising or if it's falling like it is right now. So any color on the linearity of demand you saw and how you view 2019 growth potential, relative to what the overall market is doing versus what sort of incremental share gains you guys can take in any number of product areas where you have new design wins.

Michael 或 Bernie，我想請教你們對總體環境的看法。你們公司有許多自身因素可用來搶市占，但若大環境潮水上升或像現在這樣下滑，你們也不可能完全不受影響。因此，能否分享一下你們觀察到的需求線性變化（linearity），以及你們如何看待 2019 年的成長潛力：相對於整體市場的表現，以及你們在多個產品領域（你們已取得新的設計導入）可額外取得的市占增量。

Ross, okay. So good questions. As you know, all MPS' growth is from the new product. And then you -- in the new market segment that Bernie mentioned, the automotives and industrials and the computing. And in the later -- especially in the Q4, last year's, we see slowing down dramatically. And we asked around our customers and all due to the -- they said to me, it's all due to economy and uncertainty in the futures. And however, in the middle of all of these, okay, we see -- not all the products have stopped, and a delay that there, they're introductions. But as some have stopped -- some the -- their end product still introduced, or still we have a replacement, we gained some market shares. And in 2019, we still expect to grow and grow -- have a very healthy year. But the percentage -- okay, the growth, whether it's the same as the last couple of years, that we cannot tell.

Ross，好。所以是很好的問題。如你所知，MPS 的所有成長都來自新產品。然後你——在 Bernie 提到的新市場區隔，也就是汽車、工業以及運算。而在後期——尤其是在去年第四季，我們看到放緩得非常明顯。我們也向客戶打聽，都是因為——他們跟我說，完全是因為經濟以及對未來的不確定性。不過，在這些情況之中，好，我們看到——並不是所有產品都停下來了，有些只是延後了它們的導入。但當有些停下來——有些——它們的終端產品仍然導入，或我們仍有替代方案，因此我們取得了一些市占率。而在 2019 年，我們仍預期會成長、會成長——會是非常健康的一年。但成長的百分比——好，成長是否會和過去幾年一樣，我們無法判斷。

And if I could add to that, Ross, that what we're observing, again, only from our specific position, is that the design wins are in place. Our end customers are interested in going to market, but they're just not the right conditions for them to invest in that type of new product ramp. And so I don't have any view as far as how long this will last or when we start to see the improvements come around. But I believe very confidently that we're well positioned to take full advantage of that turnaround.

Ross，如果我可以補充一下，我們觀察到的——同樣地，只是從我們特定的位置來看——是設計導入（design wins）都已到位。我們的終端客戶有興趣把產品推向市場，但目前的條件不適合他們投資這類新產品的放量爬坡。因此，這會持續多久、或我們何時開始看到改善，我沒有任何看法。但我非常有信心，我們已處於很好的位置，可以在景氣回升時充分把握機會。

I guess, as my follow-up, just on the inventory side, I know you guys have talked about increasing your own internal inventory to be ready for those ramps. So I guess, a 2-part question. One, is that still the case? Or should that inventory come down if those ramps continue to be delayed? And then two, do give us an update on what the channel inventory situation is and what your expectations are for that as well.

我想，作為追問，就庫存面來看，我知道你們談過要提高自家內部庫存，以便為那些放量爬坡做好準備。所以我想這是一個兩部分的問題。第一，現在仍然是這樣嗎？或者如果那些爬坡持續延後，庫存是否應該下降？第二，也請更新一下通路庫存的狀況，以及你們對此的預期。

Hey Ross, I like that question now. The inventory, I think we see it as a lag, okay. Clearly, it's very valid, okay. And in this kind of a transitional market conditions, we watch very carefully. So that's why I like that question. And of course, there's a delay there, and we see -- it was -- of course, demand's slowing down, okay. We control our -- the inventory will come down, so we control very highly -- now Bernie, you can answer the more important numbers.

嗨 Ross，我現在喜歡這個問題。庫存，我認為我們把它視為一個落後指標，好。很明顯，這個問題非常合理，好。在這種轉換期的市場狀況下，我們會非常仔細地觀察。所以我才喜歡這個問題。當然，這裡面有延遲，我們也看到——它是——當然，需求正在放緩，好。我們會控制我們的——庫存會下降，所以我們會非常嚴格地控制——現在 Bernie，你可以回答更重要的數字。

Yes. On the second side of that question, as far as how the channel performed, is what we do is we fill orders based upon our customer demand, and that's 90% distributor-related. And then the distributors are creating that demand or those orders on that, based on the information they're getting from their customers. And the slowdown occurred during the quarter, so we ended up in a position where the, in terms of both dollars and days, that the channel inventories did increase and managing that going forward, some of the management of that is reflected in our guidance for Q1.

是。就問題的第二部分，關於通路表現，我們的做法是依據客戶需求來出貨，而其中 90% 與經銷商相關。接著經銷商會根據他們從其客戶那裡得到的資訊，來形成那個需求或那些訂單。放緩發生在本季期間，因此我們最後的狀況是——以金額與天數來看——通路庫存確實增加了；而往後如何管理，其中一部分已反映在我們對第一季的財測指引中。

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

我們的下一個問題來自 Needham 的 Quinn Bolton。

Hey guys, I'll apologize because I missed most of the prepared comments. But obviously, a slightly weaker guide for March. Just wondering as you look into the full year, you typically see a much stronger second and third quarter in terms of seasonality. Is there any reason to think some of the near-term effects you've seen -- that are hitting Q1 extend into Q2, Q3 or should we be thinking about a more traditional seasonal pattern as we get out to the June and September quarters?

嗨各位，我先道歉，因為我錯過了大部分的事先準備發言。但很明顯，對三月的指引稍微偏弱。我想問的是，當你們看全年時，通常在季節性上第二季和第三季會強很多。是否有任何理由認為你們看到的一些短期影響——正在衝擊第一季的那些——會延伸到第二季、第三季？還是我們應該在走到六月與九月季度時，回到較傳統的季節性型態來思考？

I think when we responded to Ross on this, is that we really don't have good visibility. There's a lot of uncertainty relative to the out quarters. So when we look more short term at Q1, even -- let me go back to Q4 for a second, we put up some very significant numbers in all of our groups, except for consumer, which was most price sensitively impacted by trade and tariffs in the macro, particularly in Greater China. So it's the -- the point that we also observed is that a lot of the new product ramps that our customers were building expectations around have been pushed out in this period in time. And so it's hard for us to say concretely how that's going to affect our overall growth rate for the year or when do we expect the turnaround to begin.

我想我們在回覆 Ross 時提到的是，我們其實沒有很好的能見度。對於後續季度存在很多不確定性。所以當我們較短期地看第一季時——甚至讓我回到第四季一下——我們在所有事業群都交出非常顯著的數字，除了消費性產品；消費性產品在宏觀環境中受貿易與關稅影響、對價格最敏感，特別是在大中華區。所以——我們也觀察到的一點是，許多客戶原本建立期待的新產品放量爬坡，在這段期間被往後推遲了。因此，我們很難具體地說這將如何影響我們今年的整體成長率，或我們預期何時開始出現回升。

Okay, great. And then just a second question again, I'll apologize. Did you sort of give a backlog number? I think you've for most of the past 3 or 4 years, you tended to be at 80-or-so percent of guidance in backlog starting the quarter. Are we in that metric range for the March quarter?

好的，很好。然後第二個問題，我再道歉一次。你們有提到積壓訂單（backlog）的數字嗎？我想在過去 3 到 4 年的大部分時間，你們在季度開始時，積壓訂單通常約為指引的 80% 左右。在三月季度，我們是否也在這個指標範圍內？

Yes, we are.

是的，我們是。

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

我們的下一個問題來自 Oppenheimer 的 Rick Schafer。

I guess that I was hoping to understand gross margin at least in the near term just a little better, I know it's obviously softer. Is the primary driver, that's just simply mix? I would have assumed a better mix in 1Q, but are we -- Bernie, if you can provide any, maybe a little more color there, what's your expectations are by segment, maybe it almost seems like consumer's going to be a bigger contributor to mix in the first quarter. And then the second part of that question is just how fast -- if you guys can give any color on how fast the gross margin might rebound?

我想我希望能更了解至少在短期內的毛利率，我知道它顯然偏軟。主要驅動因素是否只是產品組合（mix）？我原本以為第一季的組合會更好，但我們是否——Bernie，如果你能提供一些——也許多一點說明，你對各事業群的預期是什麼？看起來好像消費性產品在第一季會對組合有更大的貢獻。然後第二部分是，如果你們能提供一些說明，毛利率可能會以多快的速度回升？

Sure. So when we look at Q4, let's just start with that, that was clearly mix. Because when you look at the influx of revenue into the communications, that was predominantly lower-margin business. And we discussed that in Q3 as well, so it's continuation of the same. But then you had some of our high-margin, and it was pretty broad-based. For example, SSD, power management for GPUs and a couple of things in industrial that underperformed expectations. And so as a result, those are very high margin, and we off -- it was -- the offset was against lower-margin business and that accounted for the 50 basis points. When we look at Q1, we still have some overhang of mix issues. It's not -- not all of it. And even though we don't have a specific number, we are anticipating that we'll need to look at our inventory provisions in a different light with lower demand. Again, we've talked in the past that our inventory has a long shelf life and we believe that all products are ultimately going to be sellable. But the mechanic of how we determine our inventory provision is based upon near-term demand, and that may not support or may support a higher inventory provision. And as far as looking forward, I don't have guidance beyond. But obviously, with the new products that -- when they start to ramp as Michael is describing, those will contribute very positively and immediately to our gross margin.

當然。所以當我們看第四季——先從那裡開始——那很明顯是組合因素。因為當你看通訊領域的營收湧入，那主要是較低毛利的業務。我們在第三季也討論過，所以這是同樣情況的延續。但同時你也看到我們一些高毛利的業務，而且範圍相當廣。例如 SSD、GPU 的電源管理，以及工業領域中幾項表現低於預期的項目。因此，這些都是非常高毛利，而我們——它是——被較低毛利的業務所抵消，這解釋了那 50 個基點。當我們看第一季時，組合問題仍有一些壓力（overhang）。但並不是——不是全部。而且即使我們沒有一個具體數字，我們預期在需求較低的情況下，需要用不同的角度來看待我們的庫存備抵（inventory provisions）。我們過去談過，我們的庫存有很長的保存期限，我們相信所有產品最終都能賣得出去。但我們決定庫存備抵的機制是基於短期需求，而這可能不支持、或可能支持較高的庫存備抵。至於往前看，我沒有更後面的指引。但很明顯，隨著新產品——當它們如 Michael 所描述開始放量爬坡時——將會非常正面且立即地貢獻我們的毛利率。

What we foresee, going forward, is all the new product delays and the margin will stay as closer than that, so okay. We don't see a dramatic change. But dramatic change is all relative. And now we have 0.5% change, okay, that's pretty small to me. Okay? And -- but we analyze that -- and that's against our very consistent result in the last 4, 5 quarters. And that is due to the mix. And all the newer products -- newer revenue, high-quality revenue gets delayed. And going forward, and we expect to grow the gross margin as -- very consistently as the economy recovered.

我們對未來的預期是，所有新產品的延遲以及毛利率將會維持在接近目前的水準，所以可以。我們不認為會有劇烈的變化。但所謂劇烈變化都是相對的。而現在我們只有0.5%的變動，好的，對我來說這很小。好嗎？而且——但我們分析過——這是相對於過去4、5個季度非常一致的結果而言。這是由於產品組合所致。而所有較新的產品——較新的營收、高品質營收都被延後了。展望未來，隨著經濟復甦，我們預期毛利率將會非常穩定地成長。

And then just shifting gears quickly to server. You've talked I know in the past about the potential server content for you guys, around 50 today but going to 70 next year. And I'm just curious because you were talking about 48-volt in your prepared remarks. How much of that 50 to 70 captures any content gains associated with 48-volt core power market share for -- gains for you guys? Is 48-volt a material content driver for MPS?

接著快速轉到伺服器。我知道你們過去談過你們在伺服器上的潛在內容價值，目前大約50，但明年會到70。我只是好奇，因為你在準備好的發言中提到48伏。在這個從50到70的提升中，有多少包含了與48伏核心電源市場市佔提升相關的內容增量——也就是你們的增量？48伏對MPS而言是重要的內容驅動因素嗎？

Yes. We actually expected it in Q1 -- what, in Q1 2019. And obviously, much -- it's actually -- the numbers are much smaller, so like we and -- so all -- actually, as we see it. It's not in the first half anyway, so it would be in the second half of 2018 and early part of 2020.

是。我們其實原本預期會在第一季——什麼，在2019年第一季。而顯然，規模要小得多，所以像我們——所以一切——其實，就我們所見。反正不會在上半年，所以會在2018年下半年以及2020年初期。

Our next question comes from the line of William Stein with SunTrust.

下一個問題來自SunTrust的William Stein。

Based on the backlog and the order patterns, would you expect -- or I should say, it seems to me that we'd expect lower than maybe typical seasonality heading into Q2. Is that the right way to think about the model, given that you, maybe you sort of started seeing this weakness a little bit later than others and seems to be at least a couple of quarters of weakness for what everyone else is seeing?

根據積壓訂單和下單模式，你是否預期——或者我應該說，在我看來，我們可能會預期進入第二季時的季節性會低於典型水準。考量到你們可能比其他人稍晚才開始看到這種疲弱，而且看起來大家所看到的疲弱至少會持續幾個季度，這樣理解模型是否正確？

Yes. I don't see there being a quick -- a catalyst that would create a quick turnaround. So I think while we only guide 1 quarter ahead, that I could support that thesis.

是。我不認為會有一個快速的——能促成快速反轉的催化劑。所以我想，雖然我們只提供往前一季的指引，但我可以支持這個論點。

Okay. And then, as it relates to inventory, Bernie, I think you mentioned that channel inventory on days and dollars were up again in the quarter. Does your guidance for Q1, combined with what you, let's say expect to sell through, would that support lower dollars and days at the end of Q1 or something different?

好的。接著關於庫存，Bernie，我想你提到本季通路庫存（以天數與金額計）又上升了。你們對第一季的指引，加上你們預期的銷售消化（sell-through），是否支持第一季末的庫存金額與天數下降，還是會是不同的情況？

It's more likely that we will be down in dollars, but probably close to flat in days because you have a smaller denominator.

更可能是金額會下降，但天數可能接近持平，因為分母變小了。

Our next question comes from the line of Tore Svanberg with Stifel.

下一個問題來自Stifel的Tore Svanberg。

I'll start here from the macro stuff, and I'm pretty interested in BCD6. Could you elaborate a little bit more what that means for products going forward? You talked about 55-nanometer and 12-inch wafers. But any other color you could add?

我先從總體面開始，我對BCD6很感興趣。你能否再多說一點，這對未來產品意味著什麼？你提到55奈米和12吋晶圓。還有其他補充說明嗎？

Yes, okay. These -- as, actually, as usual, with every other years and every years, we introduced, okay, we develop newer technologies, and that is really our foundation for the future growth. And -- so the BCD6 that we set at BCD5, we, including the memories, and okay, now it's like we're including much denser logics. So now we mentioned -- Bernie mentioned it is a 55-nanometer, and we will have those type of logics. So you can think of it that way. We really put entire systems of -- on a single chip, which means we included the microcontroller. And that will give us access to a lot more market segments and a lot more capability.

是，好的。這些——其實一如往常，每隔幾年、每一年，我們都會推出、我們會開發更新的技術，而那真的是我們未來成長的基礎。而且——所以我們的BCD6是在BCD5的基礎上，我們把記憶體也納入，然後現在等於是納入更高密度的邏輯。所以現在我們提到——Bernie提到它是55奈米，我們會有那類型的邏輯。你可以用這種方式來理解。我們真的把整個系統——整套系統整合在單一晶片上，這表示我們把微控制器也包含進來。這將讓我們能切入更多市場區隔並具備更多能力。

And then from simply a cost point of view, there is a lower unit cost involved with this process and this geometry and how we choose to deploy that cost advantage will basically depend upon the end market. So for example, in consumer, that will extend our ability to be price competitive. In other markets, it will allow us to improve our gross margins. And in others still, it will make us able to, with the technological advantage, to compete in markets that we hadn't previously been able to enter into.

另外，從純成本角度來看，這個製程與幾何尺寸會帶來較低的單位成本，而我們如何運用這個成本優勢，基本上取決於終端市場。例如在消費性市場，這會延伸我們在價格上的競爭力。在其他市場，這將使我們能提升毛利率。而在另外一些市場，憑藉技術優勢，這會讓我們能在過去無法進入的市場中競爭。

And also you mentioned obviously, e-commerce and your website up and running last year. Could you give us some color on how the feedback has been so far? How the learning curve going for customers?

另外你也提到，顯然，電商以及你們的網站去年已經上線運作。你能否分享一些目前為止的回饋？客戶的學習曲線進展如何？

Yes. We -- you call the website, yes, operating okay. But I said, we're still learning. As expected, actually, this is a very new frontier to everybody, and nobody attempted that before. And we still trying to figure out why the -- when we give the floppy disk because it's a lot more effective, but then we go through our website. So we're still trying to figure out. Something's, obviously, is not quite right. But the product itself, when we give a traditional way and give them all the tools, they give them a CD and give them -- download a program, everybody likes that. And we see more and more customers would rather use a fixed product than they choose the programmable parts. And going -- we see a clear directions. And but how effectively using the website, we're still trying to figure out.

是。我們——你說網站，是的，運作還可以。但我說，我們仍在學習。如預期，這對所有人來說都是非常新的領域，而且以前沒有人嘗試過。我們仍在試著弄清楚為什麼——當我們提供軟碟時效果更好，但我們改走網站流程就不一樣。所以我們還在摸索。顯然有些地方不太對。但產品本身，當我們用傳統方式提供並給他們所有工具，給他們一片CD並讓他們——下載程式，大家都喜歡。而且我們看到越來越多客戶寧可使用固定功能的產品，而不是選擇可程式化的元件。展望未來——我們看到一個明確的方向。但網站要如何更有效地使用，我們仍在試著弄清楚。

Very good. One last question...

很好。最後一個問題……

(inaudible)

(聽不清楚)

Yes, go ahead, Bernie.

是，請說，Bernie。

I just wanted to caution that I think we tried to set expectations around the fact that we would have 0 revenue in '18, 0 revenue in '19, that's not entirely true because we are generating revenue. But then we'll have a good slow ramp in '20 and '21. And it's really 2022 is when we expect it to contribute materially.

我只是想提醒一下，我想我們試著設定市場預期：我們在2018年會是0營收、2019年也會是0營收，但這不完全正確，因為我們正在產生營收。但接著在2020年和2021年會有一個良好但緩慢的爬坡。而真正預期會有實質貢獻的是2022年。

Are you're talking about the e-commerce?

你是在說電商嗎？

Yes.

是。

Yes. And that's strictly sales through website. And now we see the early -- actually, we do see some revenues -- some meaningful revenues. But in terms of a programmable site and why people just don't use online tools, whether the online tools are not good enough or whether have ordering kind of was too difficult for them to order. And we try -- in that respect, we haven't generated any revenues on a programmable parts revenue from our website.

是。而那嚴格來說是透過網站的銷售。而現在我們看到早期——其實，我們確實看到一些營收——一些有意義的營收。但就可程式化網站而言，以及為什麼人們就是不使用線上工具，究竟是線上工具不夠好，還是下單流程對他們來說太困難。而我們嘗試——在這方面，我們尚未從網站上的可程式化元件營收中產生任何營收。

Just one last question. You mentioned communications coming back. It sounds like that's more kind of your legacy business. Should we assume that the new 5G products will kind of get the gross margin going again in the communications revenue?

最後再問一個問題。你提到通訊業務正在回來。聽起來那比較像是你們的既有（legacy）業務。我們是否可以假設新的 5G 產品會讓通訊營收的毛利率重新回升？

Absolutely. As I've said, in a -- I remember the last year, some quarters, and I think it's Q2, I mentioned that, and we will get some communication revenues and we see the opportunities. And it's even though a lower margin, but it's good dollars. And at the same times, I mentioned, I haven't given up on the higher-margin communications. Once we introduce the right product, and we did have it in the last years, okay, and we just haven't just release it. And now we design it. And when the 5G happens, we were -- we will be on the way.

絕對是。如我所說，我記得去年某幾個季度，我想是在第二季（Q2），我提到過我們會拿到一些通訊營收，而且我們看到了機會。即使毛利率較低，但仍是很好的收入貢獻。同時我也提到，我並沒有放棄高毛利的通訊業務。一旦我們推出對的產品——過去幾年其實我們就有了，好嗎，只是一直沒有正式釋出。而現在我們正在設計它。等到 5G 來臨時，我們——我們就會在路上（準備就緒）。

Our next question comes from the line of Matt Ramsay with Cowen.

下一個問題來自 Cowen 的 Matt Ramsay。

Bernie, I wondered if you, I guess this is maybe a little bit of a different way to ask Rick's question from earlier around mix and gross margin. But maybe perhaps you could give us a little bit of color by division about how you're thinking of sequential growth or decline in the different business units might be going into Q1? I think that would be helpful.

Bernie，我想用另一種方式來問先前 Rick 關於產品組合與毛利率的問題。或許你可以按事業部門提供一些補充說明，談談你們如何看待各個業務單位在第一季（Q1）可能出現的季增或季減？我想這會很有幫助。

Yes, sure. When we look at mix, obviously, the traditional way to sort of view it is that consumer is lower and also the legacy comms business is on the lower end. And just as far as the transition from Q4 to Q1, we've guided at about flat gross margin, but the mix is less bad in Q1 than in Q4 because we've continued to see growth in our computing and...

好的，當然。我們看產品組合時，傳統的看法是消費性較低毛利，而既有通訊業務也偏低端（毛利較低）。就從第四季（Q4）到第一季（Q1）的轉換而言，我們指引毛利率大致持平，但 Q1 的組合比 Q4 沒那麼差，因為我們持續看到運算與……的成長。

Automotive. Yes.

車用。是的。

Automotive. And then there's some declines in industrial, and that you have to have as a backdrop that industrial has, the last 2 quarters, really outperformed any of its historic patterns. So that's not coming as a total surprise. And then you have consumer that's doing a little bit of an exaggerated step down from Q4 to Q1. So that's really the mix that we're looking at, is computing and automotive are continuing to form -- outperform expectations. And we've got some declines or exposure to both high- and low-margin opportunities.

車用。然後工業有一些下滑；同時要把背景放進來看：工業在過去兩個季度的表現其實大幅優於其歷史季節性/型態。所以這並不算完全意外。另外，消費性從 Q4 到 Q1 的下滑幅度也稍微被放大。因此我們看到的組合就是：運算與車用持續——表現優於預期。而我們在高毛利與低毛利機會上，都有一些下滑或曝險。

Got it. That's helpful on the mix. I guess, if we look forward in the compute and storage business, if you could remind us again about exactly the mix and exposure to the computing side and the storage side? It seems like there's some catalyst on, obviously, on the computing side from a share perspective and 48-volt, but this has been a pretty ugly environment on the storage side from a macro perspective. So some update on the mix and how you're thinking about those 2 different segments out there, recovering as we go through the year would be helpful.

了解。這對產品組合的說明很有幫助。我想再往前看運算與儲存業務，能否再提醒我們在運算端與儲存端的實際組合與曝險各是如何？看起來運算端在市占與 48 伏特方面有一些催化因素，但從總體環境來看，儲存端的環境相當艱困。所以如果能更新一下組合，以及你們如何看待這兩個不同區塊在今年逐步復甦，會很有幫助。

Sure. So storage is a significant part of our business, but it's declined as a percent only because it hadn't grown at the same rate as what we've seen on the compute side. And there was, if you look at last year, 2018, SSD in particular, ramped very early and sustained that growth all the way through the mid part of Q3 before starting to decline. In that area, I see sort of a stabilization. And currently, storage, if you looked at Q4 for example, it's about 1/3 of that line item. Then when you look at the computing, obviously, we've had significant run-up in our server and workstation. So that's at an elevated level. And then as -- we were talking about earlier is that some initial sales related to GPUs are falling off as that market or those customers take a pause.

當然。儲存是我們業務中相當重要的一部分，但它占比下降只是因為它的成長速度沒有像運算端那樣快。如果你看去年 2018 年，特別是 SSD，很早就開始放量，並且一路維持成長到第三季（Q3）中段才開始下滑。在那個領域，我看到某種程度的穩定。以第四季（Q4）為例，目前儲存大約占該項目（line item）的三分之一。再看運算端，顯然我們的伺服器與工作站有顯著的拉升。所以目前處在較高水位。另外，如同我們先前談到的，與 GPU 相關的一些初期銷售正在下滑，因為該市場或那些客戶正在暫停一下。

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

下一個問題來自 William Blair 的 Alessandra Vecchi。

Just on the extension of the end markets or segments in Q1, when you guys commented that you saw sort of new product launches delayed, was there any particular vertical you're seeing that in? Is it a delay in sort of the new smart meter, industrial products? Is it a delay in the automotive products? If you could just give a little bit of color on that.

關於第一季（Q1）終端市場或區隔的延伸，你們提到看到一些新產品上市延後，這是出現在特定垂直領域嗎？是像新智慧電表、工業產品的延後嗎？還是車用產品的延後？如果可以的話，請稍微補充一些背景。

Actually, Bernie mentioned it in the earnings earlier. And we see pretty much across-the-board, automotive, industrials and as well as computing, and -- does that answer your questions?

其實 Bernie 在先前的財報說明中提到過。我們看到幾乎是全面性的：車用、工業，以及運算也都有——這樣有回答到你的問題嗎？

Yes, that does. Apologies if I missed it.

有的，回答到了。如果我剛剛漏聽了，抱歉。

That's okay.

沒關係。

All my other questions were answered.

我其他問題都已經被回答了。

(Operator Instructions) Our next question comes from the line of William Stein with SunTrust.

（接線員指示）下一個問題來自 SunTrust 的 William Stein。

Any update on the e.Motion product revenue traction?

e.Motion 產品的營收動能有任何更新嗎？

Yes. We're afraid of, this is too much of -- and yes, we actually, starting January, pretty meaningful revenue. And the new integrated solutions, as you've see it. Our website, we sell the reference design, including the models. And we received very good feedback on these. But the revenue is still...

有。我們擔心——這有點太多——但確實是，從一月開始有相當有意義的營收。而新的整合式解決方案，如你所看到的。在我們網站上，我們販售參考設計，包含模型。我們收到非常好的回饋。但營收仍然……

Early ramp.

還在早期放量。

It's early ramp. But it is ramping. It's ramping, very high percentage.

還在早期放量。但確實在放量。放量幅度很大，成長百分比非常高。

Will, thanks for giving us a chance to respond. We actually had an internal discussion on whether -- we have too many items out there. So we're not shying away from it, it's just that we, we've -- competing against a lot of other opportunities to talk about.

Will，謝謝你給我們機會回應。我們其實內部討論過是否——我們對外的項目太多了。所以我們不是在迴避它，只是我們——我們在很多其他機會之間競爭發言時間。

I understand. One other opportunity you mentioned a couple of times tonight is 48-volt. I think there's one small semi company that's pretty well known to have a big share in that market. And we're also aware that one of the main consumers is GPUs. Are you seeing revenue for that product today or is it more a couple of quarters out? And is it -- of course, we know automotive is moving in that direction, too. But in which market do you expect to generate revenues first, how close are we?

我理解。你們今晚提到好幾次的另一個機會是 48 伏特。我想有一家小型半導體公司在那個市場的市占很大、也相當知名。我們也知道其中一個主要的用戶是 GPU。你們今天已經看到該產品的營收了嗎？還是要再過幾個季度？另外——當然，我們也知道車用也正往那個方向走。但你們預期會先在哪個市場產生營收？我們離那個時間點有多近？

It's actually both. And automotive has been in the 48-volts in all in high-end cars, okay, now it's trickled down. And last year, we expected to have -- in the second half of 2019. And as we see it, okay, probably still going to happen because these are very high -- these are high-end products. I think it's still going to launch because the demand's still there. It's regardless, regardless of the market.

其實兩者都有。而汽車領域在高階車款上早已全面採用 48 伏系統，好，現在也逐步下放。而去年，我們原本預期會在 2019 年下半年推出——依我們目前所見，好，可能仍然會發生，因為這些是非常高階——這些是高階產品。我認為仍會上市，因為需求仍在。不管怎樣，不管市場如何。

You'll have product that's competitive and ready and recognizing revenue in the back half of this year?

你們會在今年下半年推出具競爭力且已準備就緒的產品，並在今年下半年開始認列營收嗎？

I believe so. Yes, I believe so, that in terms of how -- what is the impact to our revenue, that's difficult to say now. I think these are high -- these are AR systems, and you always need it somewhere, but it's just a matter of how many.

我相信會。是的，我相信會；至於——對我們營收的影響會是什麼，現在很難說。我想這些是高——這些是 AR 系統，你總會在某些地方需要它，但只是數量多寡的問題。

Our next question comes the line of Chris Caso with Raymond James.

我們的下一個問題來自 Raymond James 的 Chris Caso。

Just one question for me. Bernie, could you clarify one of the comments you made earlier on the inventory provisions? You said you needed to take another look on that. Is the right interpretation of that just changing the quarterly reserves that you typically make? And what's about the magnitude, is there any impact on margins from that?

我只有一個問題。Bernie，你能否釐清你先前對存貨備抵（提列）所做的一則評論？你說你需要再看一下。正確的解讀是否只是調整你們通常每季提列的準備金？另外就幅度而言，這對毛利率是否有任何影響？

Yes. I haven't specifically calculated any exposure. So what we've done in the forecast or the guidance is just provide a little bit of a step up. And the rationale behind it is that we have a mechanical way of determining that number, which is based upon the next 6 months' demand. So it's sort of inferred that if your 6-month demand looks to be going down, that, that could increase your likelihood of having an exposure. That's not to call out any specific product or end market. It's just sort of being generally conservative in the guidance we're providing.

是的。我尚未針對任何曝險做出具體計算。所以我們在預測或財測指引中所做的，只是稍微上調一些。其背後的理由是：我們有一套機械式的方法來決定那個數字，是以未來 6 個月的需求為基礎。因此可以推論，如果你未來 6 個月的需求看起來在下降，那麼你發生曝險的可能性就會提高。這並不是在點名任何特定產品或終端市場。只是我們在提供指引時，整體上採取較保守的作法。

Yes. As of today, we don't see any dramatic change, okay. And it's all small numbers and change, okay. When -- but -- when, what Bernie is talking about when the market dramatically changes, okay, again, it's likely in last year, December -- the end of the quarters. And then we'll -- it may changes again. So we -- at this times, we see it's pretty normal now.

是的。截至今天，我們沒有看到任何劇烈變化，好。而且都只是小幅的數字變動，好。但——Bernie 所說的是，當市場出現劇烈變化時，好，再次強調，很可能是在去年 12 月——季度末。然後——它也可能再次改變。所以——就目前而言，我們看起來現在相當正常。

Our next question comes with a line of Tore Svanberg with Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

I just had a quick follow-up, and back to BCD6. I think you've talked about having a $17 billion SAM. And I'm just wondering what BCD6 does to that SAM number.

我有個簡短的追問，回到 BCD6。我想你們談到過有 170 億美元的 SAM（可服務市場規模）。我想知道 BCD6 會如何影響那個 SAM 數字。

Yes. We haven't got to that point yet. That's a very good question. And certainly, we see in our -- in the application that we targeted, and targeted, we can integrate a lot of -- many microcontroller features.

是的。我們還沒到那一步。這是個非常好的問題。而且當然，我們在——在我們所鎖定的應用中看到，而且在我們鎖定、鎖定的應用裡，我們可以整合很多——許多微控制器的功能。

And just to be clear...

我只是想確認一下……

Yes, yes?

是，是？

Yes, and just to be clear, so those micros, you would develop yourself, right? You wouldn't buy off-the-shelf ones?

是的，我只是想確認一下，所以那些微控制器會由你們自行開發，對吧？你們不會去買現成的？

It depends on applications. Some of the -- and as we know now, okay, we rebranded. And but we do have our firmware in the macro. And as of -- into the total integrators solutions, and first of all, so have a total integration, has a clear reason, has a cost-effective in all by size limitations. And it was integrated, and then we had to wait -- are not going to -- ground up, develop a microcontroller. And as those are not cost-effective for us, and those are way most likely is a licensing.

這取決於應用。有些——而且就我們目前所知，好，我們做了重新品牌化。但是我們確實在宏（macro）裡有我們的韌體。而就——整體整合式解決方案而言，首先，做全面整合有明確的理由：在尺寸限制下，整體成本更具效益。而它已被整合，因此我們必須等待——我們不會——從零開始開發一顆微控制器。因為那對我們不具成本效益，而更可能的方式會是授權。

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

目前我看到佇列中沒有其他問題。我想把電話交回管理層做結語。

I'd like to thank you all for joining us for the conference call and look forward to talking to you again during our first quarter 2019 conference call, which would likely be in April. Thank you. Have a great day.

感謝各位參加本次電話會議，也期待在我們 2019 年第一季法說電話會議再與各位交流，時間可能會在 4 月。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，感謝各位參與今天的會議。本次議程到此結束，您現在可以掛線。各位，祝有美好的一天。