邁威爾科技 (MRVL) 2019 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Second Quarter 2019 Marvell Technology Group Ltd. Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們、先生們，美好的一天，歡迎來到 Marvell Technology Group Ltd 2019 年第二季度。收益電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

Now, I'd like to turn the call over to Ashish Saran, VP of Investor Relations. Sir, you may begin.

現在，我想將電話轉給投資者關係副總裁 Ashish Saran。先生，您可以開始了。

Thank you, and good afternoon, everyone. Welcome to Marvell's Second Quarter Fiscal Year 2019 Earnings Call. Joining me today are Marvell President and CEO, Matt Murphy; and Marvell CFO, Jean Hu.

謝謝大家，大家下午好。歡迎參加 Marvell 2019 財年第二季度財報電話會議。今天與我一起出席的有 Marvell 總裁兼首席執行官 Matt Murphy；和 Marvell 首席財務官 Jean Hu。

Before I turn the call over to Matt, I want to remind everyone that certain comments today may include forward-looking statements, which are subject to significant risks and uncertainties, and which could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements.

在我把電話轉給馬特之前，我想提醒大家，今天的某些評論可能包括前瞻性陳述，這些陳述受到重大風險和不確定性的影響，可能導致我們的實際結果與管理層當前的預期存在重大差異。請查看我們今天向 SEC 提交並發佈在我們網站上的收益新聞稿中包含的警示性聲明和風險因素，以及我們最近的 10-K 和 10-Q 文件。我們不打算更新我們的前瞻性陳述。

During our call today, we will make reference to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measures is available on our website in the Investor Relations section.

在今天的電話會議中，我們將參考某些非公認會計準則財務指標。我們的 GAAP 和非 GAAP 財務指標之間的調節可在我們網站的投資者關係部分找到。

As you know, we closed the acquisition of Cavium on July 6, 2018, approximately 4 weeks before the end of our second fiscal quarter. Therefore, the results we report today for the second quarter of fiscal 2019 include the results from the Cavium businesses from July 6 to the end of the fiscal quarter.

如您所知，我們於 2018 年 7 月 6 日（即第二財季結束前大約 4 週）完成了對 Cavium 的收購。因此，我們今天報告的 2019 財年第二季度業績包括 Cavium 業務從 7 月 6 日到本財季末的業績。

To provide a direct comparison to the second quarter fiscal year business outlook we provided in our earnings call last quarter, we have provided a table which breaks out Marvell's stand-alone non-GAAP results for the second quarter and excludes partial quarter results from the acquired Cavium business in our earnings press release. We are providing Marvell's stand-alone non-GAAP results on a onetime basis only. As a reminder, there are no GAAP results for stand-alone Marvell. Matt and Jean's second quarter commentary will primarily focus on the results from the stand-alone Marvell business as it relates to the guidance we provided on our May call, unless stated otherwise.

為了與我們在上季度財報電話會議中提供的第二季度財年業務前景進行直接比較，我們提供了一個表格，其中詳細列出了 Marvell 第二季度的獨立非 GAAP 業績，並排除了所收購公司的部分季度業績我們的財報新聞稿中包含 Cavium 業務。我們僅一次性提供 Marvell 的獨立非 GAAP 結果。提醒一下，獨立的 Marvell 沒有 GAAP 業績。除非另有說明，Matt 和 Jean 的第二季度評論將主要關注獨立 Marvell 業務的業績，因為它與我們在 5 月電話會議上提供的指導相關。

Please note that the financial outlook for the third quarter of fiscal year 2019 includes expected results from the acquired Cavium businesses for the full quarter.

請注意，2019 財年第三季度的財務前景包括所收購的 Cavium 業務整個季度的預期業績。

Prior to the acquisition of Cavium, we reported revenue for 3 core businesses, which were storage, networking and connectivity. We also reported revenue from a legacy set of businesses under the category of Other.

在收購 Cavium 之前，我們報告了 3 個核心業務的收入，即存儲、網絡和連接。我們還在“其他”類別下報告了一組遺留業務的收入。

In order to incorporate Cavium's product lines, starting with the third quarter outlook and going forward, we will be changing the structure and composition for revenue reporting. We will categorize and report revenue by 2 core businesses, storage and networking. The new storage business would include Cavium's fiber channel products, in addition to all the prior Marvell storage product line.

為了整合 Cavium 的產品線，從第三季度展望開始，我們將改變收入報告的結構和構成。我們將按存儲和網絡這兩個核心業務對收入進行分類和報告。除了所有先前的 Marvell 存儲產品線之外，新的存儲業務還將包括 Cavium 的光纖通道產品。

The new networking business would include Cavium embedded processor, security processor and Ethernet connectivity products in addition to all the prior Marvell networking products. Marvell's Wi-Fi connectivity business will also be reported within networking.

除了所有先前的 Marvell 網絡產品外，新的網絡業務還將包括 Cavium 嵌入式處理器、安全處理器和以太網連接產品。Marvell 的 Wi-Fi 連接業務也將在網絡領域進行報導。

We will still report revenue for the Other businesses, and the composition of that category remains unchanged.

我們仍將報告其他業務的收入，該類別的構成保持不變。

Please also note that starting next quarter, we will provide a revenue outlook range for the upcoming quarter only at the consolidated company level. Given changes which can take place within different businesses through the quarter, some of which can be offsetting, providing specific revenue outlooks for individual businesses may not yield the most accurate projections at the company level. This change mirrors how the majority of our peers and customers already report as well.

另請注意，從下季度開始，我們將僅在合併公司層面提供下一季度的收入前景範圍。鑑於本季度不同業務可能發生的變化（其中一些變化可能會相互抵消），為個別業務提供具體的收入前景可能無法在公司層面產生最準確的預測。這一變化也反映了我們大多數同行和客戶已經報告的情況。

We will, of course, continue to report and comment on actual results by business and we'll also provide directional commentary on revenue expectations by business for the upcoming quarter.

當然，我們將繼續按業務報告和評論實際業績，我們還將對下一季度按業務的收入預期提供定向評論。

With that, let me turn the call over to Marvell's President and CEO, Matt Murphy. Matt?

接下來，讓我將電話轉給 Marvell 總裁兼首席執行官 Matt Murphy。馬特？

Great. Thank you, Ashish, and welcome to the Marvell team, it's great to have you onboard. And good afternoon to all of you on the call, and thank you for joining us today.

偉大的。謝謝您，Ashish，歡迎加入 Marvell 團隊，很高興您加入。各位與會者下午好，感謝您今天加入我們。

I'll start with a summary of our second quarter GAAP results for the combined company. Revenue for the combined company was $665 million; GAAP gross margin was 56.7% and earnings per diluted share was $0.01.

我將首先總結合併後公司第二季度的 GAAP 業績。合併後公司的收入為 6.65 億美元； GAAP 毛利率為 56.7%，稀釋後每股收益為 0.01 美元。

I'm now going to review stand-alone Marvell non-GAAP results, excluding those of Cavium. Jean will provide third quarter projections for the combined company. Q2 was another strong quarter for Marvell. Once again, we delivered solid results driven by the strength of our core businesses and continued operational excellence. We also received regulatory clearance to close our merger with Cavium and began integrating the 2 businesses. Together, we are on our way to becoming an infrastructure solutions leader. Marvell's stand-alone revenue for their second quarter came in above the midpoint of our guidance at $624 million, up 3% from a year ago driven by strong growth in networking and continued growth in our storage business.

我現在將回顧獨立的 Marvell 非 GAAP 業績，不包括 Cavium 的業績。Jean 將為合併後的公司提供第三季度的預測。第二季度是 Marvell 另一個強勁的季度。在核心業務實力和持續卓越運營的推動下，我們再次取得了堅實的業績。我們還獲得了監管機構的批准，完成了與 Cavium 的合併，並開始整合這兩項業務。我們共同努力成為基礎設施解決方案的領導者。在網絡強勁增長和存儲業務持續增長的推動下，Marvell 第二季度的獨立收入達到 6.24 億美元，高於我們指引的中值，較上年同期增長 3%。

We continue to improve our non-GAAP gross margin, reaching a record high of 63.5%. This reflects continued progress in improving operational efficiency as well as capturing more value from our world-class engineering effort. Looking ahead, we will continue to focus on expanding our gross margin as we integrate Cavium.

我們繼續提高非 GAAP 毛利率，達到 63.5% 的歷史新高。這反映出我們在提高運營效率以及從世界一流的工程工作中獲取更多價值方面不斷取得進展。展望未來，我們將在整合 Cavium 時繼續專注於擴大毛利率。

Marvell's stand-alone non-GAAP operating margin for the second quarter was 30.1%, up 4.3 percentage points from a year ago. I am very pleased to report that we have achieved this target 6 quarters earlier than we originally projected at our last Investor Day in March of 2017.

Marvell 第二季度獨立非 GAAP 營業利潤率為 30.1%，比去年同期增長 4.3 個百分點。我很高興地向大家報告，我們已經比 2017 年 3 月最後一次投資者日的最初預計提前了 6 個季度實現了這一目標。

Non-GAAP earnings per share on a stand-alone basis was $0.35, above the midpoint of our guidance and up 17% year-over-year.

非 GAAP 每股獨立收益為 0.35 美元，高於我們指引的中值，同比增長 17%。

Moving to our core businesses. Our storage business met expectations with revenue of $320 million, growing 3% year-over-year. We continue to offset secular declines in client HDDs through 2 efforts. First, we are growing our position in the nearline segment of the HDD market, which is fueled by continued demand for data storage in the cloud. Second, we continue to increase Marvell's footprint in the SSD market, where we are also expanding our reach into the enterprise and data center segment. We believe that both of these efforts will continue to generate revenue tailwinds over the next few years.

轉向我們的核心業務。我們的存儲業務達到預期，收入達到 3.2 億美元，同比增長 3%。我們繼續通過兩項努力來抵消客戶端硬盤的長期下降。首先，我們在硬盤驅動器市場的近線部分的地位不斷增強，這得益於對雲中數據存儲的持續需求。其次，我們繼續擴大 Marvell 在 SSD 市場的佔有率，同時我們還將業務範圍擴展到企業和數據中心領域。我們相信，這兩項努力將在未來幾年繼續帶來收入增長。

As we look forward, we see significant data growth continuing at cloud and data center customers for which they need more efficient storage management that we are addressing with our new innovative solutions. For example, I'm proud to share that at last month's Flash Memory Summit, we announced 3 new storage architecture solutions based on emerging NVMe over Fabric interfaces and include both Cavium-developed products for servers and Marvell-developed products for SSD devices.

展望未來，我們看到雲和數據中心客戶的數據持續顯著增長，他們需要更高效的存儲管理，我們正在通過新的創新解決方案解決這一問題。例如，我很自豪地與大家分享，在上個月的閃存峰會上，我們宣布了 3 種基於新興 NVMe over Fabric 接口的新存儲架構解決方案，其中包括 Cavium 開發的服務器產品和 Marvell 開發的 SSD 設備產品。

These architectures eliminate legacy bottlenecks in traditional server managed storage deployments, allowing customers to efficiently scale and share storage without adding additional servers. Cloud and data center customers will now be able to meet their growing demands for higher performance and higher capacity storage, while improving the utilization and lowering their total cost of ownership.

這些架構消除了傳統服務器管理的存儲部署中的遺留瓶頸，使客戶能夠有效地擴展和共享存儲，而無需添加額外的服務器。雲和數據中心客戶現在將能夠滿足他們對更高性能和更高容量存儲不斷增長的需求，同時提高利用率並降低總體擁有成本。

Moving on to networking. Our networking business delivered $170 million in revenue and grew 16% year-over-year, significantly higher than our guidance of high single-digit growth. This growth was driven by a robust IT spending environment as well as the continued ramp of our refreshed switch and buy products for the enterprise. We are also helped by the resumption of shipments to ZTE after the export ban was lifted part way through the quarter. In addition, we also continue to ramp Ethernet switch products into wireless base stations.

繼續討論網絡。我們的網絡業務實現了 1.7 億美元的收入，同比增長 16%，明顯高於我們高個位數增長的指導。這一增長是由強勁的 IT 支出環境以及我們為企業更新的開關和購買產品的持續增長推動的。本季度中段出口禁令解除後，對中興通訊的發貨恢復也對我們有所幫助。此外，我們還繼續將以太網交換機產品推向無線基站。

Overall, Marvell's networking business continues to perform exceptionally well driven by growth from our refreshed product portfolio. As a proof point within switching, the relative contribution of revenue from our refreshed switching products more than doubled from a year ago. The addition of Cavium's products further strengthens our networking portfolio.

總體而言，在我們更新的產品組合增長的推動下，Marvell 的網絡業務繼續表現出色。作為交換領域的一個證明，我們更新的交換產品的收入相對貢獻比一年前增加了一倍多。Cavium 產品的加入進一步增強了我們的網絡產品組合。

Now moving onto connectivity. We continue to execute our strategy of shifting Marvell's connectivity business to higher performance opportunities away from older generation, lower-margin Wi-Fi products. As a result and as expected, connectivity revenue of $88 million declined 11% year-over-year in this quarter. Please note that we completed our transition away from the older gaming connectivity product during the second quarter.

現在轉向連接。我們繼續執行我們的戰略，將 Marvell 的連接業務從老一代、利潤率較低的 Wi-Fi 產品轉向更高性能的機會。因此，正如預期的那樣，本季度的連接收入為 8800 萬美元，同比下降 11%。請注意，我們在第二季度完成了從舊遊戲連接產品的過渡。

In contrast, the rest of our connectivity portfolio grew year-over-year in the second quarter as we continue to pivot the higher performance, higher margin solutions. Anticipating the evolving needs of our customers who are increasingly looking for broad platform solutions, we have recently announced our 802.11 AX suite of solutions, which position Marvell to capitalize on the market shift in the next generation of Wi-Fi.

相比之下，隨著我們繼續轉向更高性能、更高利潤的解決方案，我們的其他連接產品組合在第二季度同比增長。我們的客戶日益尋求廣泛的平台解決方案，預計他們的需求會不斷變化，因此我們最近發布了 802.11 AX 解決方案套件，這使得 Marvell 能夠利用下一代 Wi-Fi 的市場轉變。

Overall, I'm very pleased with the performance of Marvell's core businesses and look forward to their continued growth, especially with the integration of Cavium's products and technologies.

總體而言，我對 Marvell 核心業務的表現非常滿意，並期待其持續增長，特別是與 Cavium 產品和技術的整合。

Now let me move on to the integration of Cavium. As I've mentioned on past calls, we started integration planning early and the Cavium team is already an integral part of the new Marvell. It's been great to welcome them to our combined team.

現在讓我繼續討論 Cavium 的集成。正如我在過去的電話中提到的，我們很早就開始了集成規劃，Cavium 團隊已經成為新 Marvell 不可或缺的一部分。很高興歡迎他們加入我們的聯合團隊。

Given that we had completed a significant amount of planning before the acquisition closed, our integration is proceeding at a fast pace. As we integrate, we're applying important lessons from the last 2-plus years of Marvell's own transformation.

鑑於我們在收購完成之前已經完成了大量規劃，我們的整合正在快速進行。在整合過程中，我們正在吸取 Marvell 過去兩年多自身轉型的重要經驗教訓。

All of this experience in planning is now paying off with rapid and efficient integration occurring across our sales, engineering, operations and G&A teams. For example, in the first 2 months since closing the acquisition, we have already integrated the XPliant in our modern road maps into their respective R&D teams.

所有這些規劃經驗現在正在通過我們的銷售、工程、運營和 G&A 團隊之間快速高效的整合而得到回報。例如，在完成收購後的前兩個月，我們已經將現代路線圖中的 XPliant 整合到各自的研發團隊中。

We also quickly realigned Cavium's business processes and infrastructure with Marvell's, including robust forecasting, budgeting, project reviews and establishing P&L accountability at the product line level to better optimize resource allocation.

我們還迅速將 Cavium 的業務流程和基礎設施與 Marvell 的業務流程和基礎設施進行了調整，包括強大的預測、預算、項目審查以及在產品線層面建立損益問責制，以更好地優化資源分配。

Similarly, our combined business and engineering leaders also completed a strategic portfolio review of all key products and technologies across the entire combined company in order to optimize future R&D investments.

同樣，我們合併後的業務和工程領導者還完成了對整個合併後公司的所有關鍵產品和技術的戰略組合審查，以優化未來的研發投資。

One of the key changes we instituted on day 1 was applying Marvell's disciplined revenue and sales processes to the Cavium businesses. We believe that these actions will provide significant long-term benefits, including a more predicable business, lower levels of inventory across the supply chain, higher customer satisfaction and less pressure on the sales team to chase short-term revenue.

我們在第一天實施的關鍵變革之一是將 Marvell 嚴格的收入和銷售流程應用於 Cavium 業務。我們相信，這些行動將帶來顯著的長期利益，包括業務更可預測、整個供應鏈的庫存水平更低、客戶滿意度更高以及銷售團隊追求短期收入的壓力更小。

Our sales team is focused on attaining high-quality design wins that drive long-term revenue growth, and I'm confident that our disciplined approach will enable this across all of our new businesses. I'm very confident that our combined team will drive us towards our long-term 6% to 8% annual revenue growth target.

我們的銷售團隊專注於獲得高質量的設計成果，從而推動長期收入增長，我相信我們嚴格的方法將在我們所有的新業務中實現這一點。我非常有信心，我們的合併團隊將推動我們實現 6% 至 8% 的長期年收入增長目標。

I'm also very happy with how well the Marvell and Cavium teams are collaborating. Already, as we have begun working together, we've identified additional cost savings opportunities. These additional synergies, combined with our rigorous and thorough approach to integration, are allowing us to increase our synergy target from our prior $150 million to $175 million outlook to $200 million by the end of fiscal 2020 on a run rate basis.

我也對 Marvell 和 Cavium 團隊的良好合作感到非常滿意。當我們開始合作時，我們已經確定了額外的成本節省機會。這些額外的協同效應，加上我們嚴格而徹底的整合方法，使我們能夠將協同目標從之前的 1.5 億美元至 1.75 億美元的預期提高到 2020 財年末的 2 億美元（按運行率計算）。

As Jean will discuss later, our combined third quarter outlook bakes in just over half of the long-term OpEx synergy target on a run rate basis. This will be significant accomplishment in our first full quarter as a combined company.

正如吉恩稍後將討論的那樣，我們對第三季度的綜合展望僅略高於長期運營支出協同目標的一半（按運行率計算）。這將是我們合併後公司第一個完整季度取得的重大成就。

As I mentioned earlier, we also completed our annual strategic portfolio review to prioritize R&D resource allocation to maximize future growth and profitability. As a result, we have begun shifting resources to areas with higher return potential and deemphasizing investments in lower ROI products.

正如我之前提到的，我們還完成了年度戰略投資組合審查，以優先考慮研發資源分配，以最大限度地提高未來的增長和盈利能力。因此，我們開始將資源轉移到回報潛力較高的領域，並不再強調投資回報率較低的產品。

For example, we completed the sale of Cavium's MontaVista Software product line and have quickly converged road maps in switching and embedded processors. Our future switch development will be based on Marvell's Prestera product line, and we will be focusing our embedded processor efforts through Cavium's industry-leading OCTEON products. We'll, of course, continue to support customers who are currently using Cavium's XPliant switch products and Marvell's ARMADA embedded processors.

例如，我們完成了 Cavium MontaVista Software 產品線的銷售，并快速融合了交換和嵌入式處理器的路線圖。我們未來的交換機開發將基於 Marvell 的 Prestera 產品線，並且我們將通過 Cavium 業界領先的 OCTEON 產品來專注於我們的嵌入式處理器工作。當然，我們將繼續為目前使用 Cavium XPliant 交換機產品和 Marvell ARMADA 嵌入式處理器的客戶提供支持。

Before I turn the call over to Jean, I'd like to thank the entire team for their continued contributions both this quarter and throughout the integration planning process. We've made amazing progress due in large part to the hard work and collaboration across the Marvell and Cavium teams, and I am excited about what we can accomplish together.

在將電話轉給 Jean 之前，我要感謝整個團隊在本季度以及整個集成規劃過程中持續做出的貢獻。我們取得了驚人的進步，這在很大程度上歸功於 Marvell 和 Cavium 團隊的辛勤工作和協作，我對我們能夠共同實現的目標感到興奮。

Our combined company has significantly larger scale, more diverse products, a greater pool of engineering talent and a broader set of technologies that are very relevant to cloud and data center customers. I've been in a number of key customer meetings recently where the depth of architectural discussion and engagement with the most senior decision-makers far exceeded what we had previously seen as independent companies and they are excited to work with us on their most ambitious projects.

我們合併後的公司擁有更大的規模、更多樣化的產品、更多的工程人才以及更廣泛的與雲和數據中心客戶非常相關的技術。我最近參加了許多重要的客戶會議，其中架構討論的深度以及與最高級決策者的互動遠遠超出了我們之前所認為的獨立公司，他們很高興與我們合作開展他們最雄心勃勃的項目。

I look forward to sharing more about our business, technology and Marvell's trajectory at our upcoming Investor Day on October 16, in New York City.

我期待在即將於 10 月 16 日在紐約市舉行的投資者日上分享更多有關我們的業務、技術和 Marvell 發展軌蹟的信息。

With that, let me turn the call over to our CFO, Jean Hu, for more details on our second quarter financial performance and our outlook for the third quarter.

接下來，讓我將電話轉給我們的首席財務官 Jean Hu，了解有關我們第二季度財務業績和第三季度前景的更多詳細信息。

Thanks, Matt, and good afternoon, everyone. I'll start with our GAAP results for the second quarter for the combined company. Please note our GAAP results include the impact of purchase price accounting items, amortization of intangibles, acquisition and integration-related and nonrecurring expenses as well as the stock-based compensation.

謝謝馬特，大家下午好。我將從合併後公司第二季度的 GAAP 業績開始。請注意，我們的公認會計準則結果包括購買價格會計項目、無形資產攤銷、收購和整合相關的非經常性費用以及基於股票的薪酬的影響。

Revenue was at $665 million; gross margin was at 56.7%; operating expenses were $385 million; operating loss was $8 million; and earnings per diluted share was $0.01.

收入為 6.65 億美元；毛利率為56.7%；運營費用為 3.85 億美元；營業虧損為 800 萬美元；稀釋後每股收益為 0.01 美元。

Turning to our combined balance sheet. I want to note that the inventory at the end of second quarter was $473 million, which include the impact of stepping up Cavium's inventory by $223 million due to purchase price accounting. We amortized $23 million of this step-up into COGS in the second quarter and we anticipate amortizing the remaining balance by the end of the fourth quarter for fiscal 2019. Please note, our non-GAAP results exclude the amortization of inventory step-up charges.

轉向我們的合併資產負債表。我想指出的是，第二季度末的庫存為 4.73 億美元，其中包括由於採購價格會計而增加 Cavium 庫存的 2.23 億美元的影響。我們在第二季度攤銷了 2300 萬美元的 COGS，預計在 2019 財年第四季度末攤銷剩餘餘額。請注意，我們的非公認會計原則結果不包括庫存增加費用的攤銷。

We exit the quarter with $524 million in cash and short-term investments. Our long-term debt was $1.9 billion, and currently, carry a blended interest rate of [4.3%]. Our gross debt-to-EBITDA ratio was 2x and the net debt-to-EBITDA ratio was 1.4x, based on our combined pro forma EBITDA.

本季度結束時，我們擁有 5.24 億美元的現金和短期投資。我們的長期債務為 19 億美元，目前的混合利率為 [4.3%]。根據我們的合併預計 EBITDA，我們的總債務與 EBITDA 比率為 2 倍，淨債務與 EBITDA 比率為 1.4 倍。

We currently expect to start paying down the debt this quarter and anticipate stepping up the paydown rate to approximately $100 million per quarter starting at fiscal 2020. As a result, we believe we can quickly get to our targeted ratio of 1.5x gross debt-to-EBITDA.

我們目前預計本季度開始償還債務，並預計從 2020 財年開始每季度將償還率提高至約 1 億美元。因此，我們相信我們能夠很快達到 1.5 倍總債務與 EBITDA 的目標比率。

In second quarter, we distributed $39 million to shareholders in dividends.

第二季度，我們向股東派發了 3900 萬美元的股息。

I will now move on to stand-alone Marvell non-GAAP results for the second quarter for fiscal year 2019. As Ashish has noted, we are providing stand-alone Marvell results on a onetime basis only this quarter because our previously provided financial outlook for the second quarter exclude any impact of the Cavium acquisition. Reconciliation of our stand alone and combined performance as well as GAAP to non-GAAP results are available in our press release.

我現在將討論 2019 財年第二季度獨立的 Marvell 非 GAAP 業績。正如 Ashish 所指出的，我們僅在本季度一次性提供獨立的 Marvell 業績，因為我們之前提供的第二季度財務前景排除了收購 Cavium 的任何影響。我們的新聞稿中提供了我們的獨立和綜合業績以及 GAAP 與非 GAAP 業績的對照表。

Stand-alone Marvell revenue in the second quarter was $624 million, toward the high end of the outlook provided in May. Our core business of storage, networking and connectivity accounted for 93% of revenue and grew 4% year-over-year.

第二季度 Marvell 獨立營收為 6.24 億美元，接近 5 月份預測的上限。我們的存儲、網絡和連接核心業務佔收入的 93%，同比增長 4%。

Storage accounted for 51% of revenue and grew 3% year-over-year, in line with our expectations.

存儲佔收入的51%，同比增長3%，符合我們的預期。

Networking accounted for 27% of revenue and grew 16% year-over-year, much stronger than expectations as we benefited from a strong end market and the resumption of shipment with ZTE halfway through the quarter. I'm very pleased with this level of growth from networking, which is coming above what we think is sustainable in the long term.

網絡業務佔收入的 27%，同比增長 16%，遠強於預期，因為我們受益於強勁的終端市場以及本季度中興通訊恢復發貨。我對網絡的這種增長水平感到非常滿意，這超出了我們認為的長期可持續發展水平。

Connectivity accounted for 14% of revenue and, as expected, it declined 11% year-over-year as we ramped down our older generation, lower-margin gaming product.

連接性業務佔收入的 14%，正如預期的那樣，由於我們減少了老一代、利潤率較低的遊戲產品，它同比下降了 11%。

Other product accounted for 7% of revenue and it declined 5% year-over-year, consistent with our expectations.

其他產品佔收入的7%，同比下降5%，符合我們的預期。

Non-GAAP gross margin was 63.5%, a record level for Marvell, and increased over 2.3 percentage point from last year. Non-GAAP operating expenses were $208 million, declined 3% year-over-year, while we simultaneously delivered the year-over-year revenue growth. Non-GAAP operating margin was 30.1%, up 4.3 percentage points from a year ago. Non-GAAP earnings per diluted share were $0.35, exceeding the midpoint of our guidance range.

非 GAAP 毛利率為 63.5%，創 Marvell 歷史新高，較去年增長超過 2.3 個百分點。非 GAAP 運營費用為 2.08 億美元，同比下降 3%，同時我們實現了同比收入增長。非 GAAP 營業利潤率為 30.1%，較上年同期上升 4.3 個百分點。非 GAAP 攤薄每股收益為 0.35 美元，超過我們指導範圍的中值。

Before I go to our third quarter outlook, I would like to spend a moment discussing Cavium's recent revenue run rate and also provide some guidance about our $200 million cost synergy achievement plan. Cavium's revenue run rate before we closed the acquisition and its contribution of $41 million to our second fiscal quarter during the 4 weeks after closing the acquisition was well below expectations. The primary reason for this was the large inventory reduction at the Cavium distributors and certain customers to bring their inventory down to levels more consistent with Marvell's business practices. At Marvell, our days of inventory have typically been in the range of 2 to 2.5 months and our distributor inventory have been in the same range, too.

在展望第三季度之前，我想花點時間討論 Cavium 最近的收入運行率，並就我們 2 億美元的成本協同實現計劃提供一些指導。在我們完成收購之前，Cavium 的收入運行率以及在完成收購後的 4 週內為我們第二財季貢獻的 4100 萬美元遠低於預期。主要原因是 Cavium 分銷商和某些客戶大幅減少庫存，以將庫存降低到更符合 Marvell 業務實踐的水平。在 Marvell，我們的庫存天數通常為 2 至 2.5 個月，我們的分銷商庫存也處於同一範圍內。

Cavium's revenue was also impacted by softer demand environment among some service providers as well as the decision to sell Cavium's MontaVista product line and the road map consolidation for Cavium's XPliant switch product.

Cavium 的收入還受到一些服務提供商需求環境疲軟、出售 Cavium MontaVista 產品線的決定以及 Cavium XPliant 交換機產品路線圖整合的影響。

Also, it's worth noting, Cavium typically had fairly nonlinear revenue generation through their fiscal quarter with the relatively low levels of revenue in the first month of their fiscal quarter, which was the last month of our fiscal quarter. The Marvell and the Cavium teams have worked together to quickly integrate our forecasting supply chain and the demand fulfillment processes. We believe Cavium's revenue bottomed out due to inventory reduction and acquisition-related impact during our fiscal second quarter, and we are forecasting a recovery in the third quarter.

此外，值得注意的是，Cavium 在整個財政季度的收入通常相當非線性，其財政季度第一個月（也就是我們財政季度的最後一個月）的收入水平相對較低。Marvell 和 Cavium 團隊共同努力，快速整合我們的預測供應鍊和需求履行流程。我們認為，由於第二財季庫存減少和收購相關影響，Cavium 的收入已見底，預計第三季度將出現復甦。

We're currently projecting strong sequential growth from Cavium in the fourth quarter, anticipating that the inventory reduction will be completely flushed out in the third quarter. We believe from the combined company base, in the fourth quarter for fiscal 2019, we can drive long-term revenue growth to our target of 6% to 8% annually.

我們目前預計 Cavium 在第四季度將出現強勁的環比增長，並預計庫存減少將在第三季度完全消除。我們相信，從合併後的公司基礎來看，2019 財年第四季度，我們可以推動長期收入增長，達到每年 6% 至 8% 的目標。

Turning to our synergy achievement plan, which we have raised to $200 million. 25% of the synergies will come from COGS, which typically take about 6 months to start taking effect. The balance, $150 million of synergy, will benefit operating expenses based on the combined pro forma operating expense run rate of $1.3 billion before the close of the transaction. The middle point of our third quarter outlook bakes in realization of $90 million of OpEx to synergy on a run rate basis.

談到我們的協同效應實現計劃，我們已將該計劃籌集到 2 億美元。25% 的協同效應將來自銷貨成本，通常需要大約 6 個月才能開始生效。根據交易結束前 13 億美元的綜合預計運營費用運行率，剩餘的 1.5 億美元協同效應將有利於運營費用。我們第三季度展望的中間點是在運行率的基礎上實現 9000 萬美元的運營支出以實現協同效應。

As a reminder, our operating expenses have a certain amount of seasonality and tends to increase in the first half of our fiscal year, primarily driven by employee payroll tax matching and our annual merit process.

需要提醒的是，我們的運營費用具有一定的季節性，並且在我們的上半財年往往會增加，這主要是由員工工資稅匹配和我們的年度績效流程推動的。

Let me now move on to our current outlook for the third quarter for fiscal 2019, which include the full quarter of Cavium contribution. We expect our total revenue to be in the range of $825 million to $865 million. At the middle point of this outlook, we expect approximately $210 million of revenue contribution from ongoing Cavium businesses. This expectation for Cavium revenue assumes approximately $20 million of excess customer and distributor inventory to be consumed in the third quarter. We believe that exiting the third quarter, Cavium's inventory level will be aligned with Marvell's practices.

現在讓我談談我們對 2019 財年第三季度的當前展望，其中包括 Cavium 整個季度的貢獻。我們預計我們的總收入將在 8.25 億美元至 8.65 億美元之間。在這一前景的中間點，我們預計正在進行的 Cavium 業務將帶來約 2.1 億美元的收入貢獻。Cavium 收入預期假設第三季度將消耗約 2000 萬美元的過剩客戶和分銷商庫存。我們相信，第三季度結束後，Cavium 的庫存水平將與 Marvell 的做法保持一致。

We expect our storage revenue at the middle point of our guidance to be approximately 48% of total revenue. As a reminder, the business now include Cavium's fiber channel product in addition to other prior year Marvell storage product lines.

我們預計我們的存儲收入在指導的中間點將佔總收入的 48% 左右。提醒一下，除了去年的其他 Marvell 存儲產品線外，該業務現在還包括 Cavium 的光纖通道產品。

We expect our networking revenue at the middle point of guidance to be approximately 46% of total revenue. This business now includes Cavium's embedded processors, security processor and the Ethernet connectivity products in addition to other prior year Marvell networking and Wi-Fi connectivity product.

我們預計我們的網絡收入在指導的中間點將佔總收入的 46% 左右。除了去年的其他 Marvell 網絡和 Wi-Fi 連接產品外，該業務現在還包括 Cavium 的嵌入式處理器、安全處理器和以太網連接產品。

We expect Other revenue at the midpoint of our guidance to be approximately 6% of total revenue.

我們預計其他收入在我們指引的中點將佔總收入的 6% 左右。

Our expected GAAP gross margin will be in the range of 44% to 45% and the non-GAAP gross margin will be in the range of 64% to 65%. We expect GAAP operating expenses to be approximately $390 million to $400 million, and the non-GAAP operating expenses to be in the range of $300 million to $305 million. We expect our GAAP tax rate to be 4% in the rest of fiscal '19. We'll update you on our fiscal '20 tax rate once we make a progress to integrate the 2 companies' international tax structure.

我們預計 GAAP 毛利率將在 44% 至 45% 範圍內，非 GAAP 毛利率將在 64% 至 65% 範圍內。我們預計 GAAP 運營費用約為 3.9 億至 4 億美元，非 GAAP 運營費用約為 3 億至 3.05 億美元。我們預計 19 財年剩餘時間內的 GAAP 稅率為 4%。一旦我們在整合兩家公司的國際稅務結構方面取得進展，我們將向您通報 20 財年稅率的最新情況。

We expect our interest expense to be around $20 million. We expect diluted share count of 670 million shares. As you know, our share count increased from prior quarter due to the 153 million shares issued as equity consideration related to this acquisition. Please note that starting with this quarter, we'll be simplifying diluted share count projection to GAAP only as the difference to non-GAAP has become immaterial with the increasing total share count.

我們預計利息支出約為 2000 萬美元。我們預計攤薄後的股數為 6.7 億股。如您所知，由於與本次收購相關的股權對價發行了 1.53 億股，我們的股票數量較上一季度有所增加。請注意，從本季度開始，我們將簡化按照 GAAP 計算的稀釋股票數量預測，因為隨著總股票數量的增加，與非 GAAP 的差異已變得無關緊要。

We anticipate GAAP loss per diluted share in the range of $0.04 to $0.08 and the non-GAAP income per diluted share in the range of $0.30 to $0.34.

我們預計 GAAP 攤薄後每股虧損將在 0.04 至 0.08 美元之間，非 GAAP 攤薄後每股收益將在 0.30 至 0.34 美元之間。

We're now ready for your questions. Operator, please open the line for questions.

我們現在已準備好回答您的問題。接線員，請開通提問線路。

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

（操作員說明）我們的第一個問題來自德意志銀行的 Ross Seymore。

And Jean, thanks for all the details about the ins and outs with Cavium. One follow-up question to that, for either you or Matt, is it appears that the Cavium revenues, if you say they're clean in your January quarter, and we just added back in that [2] of the $25 million for the $210 million that you're guiding to in October, you'd still be down kind of high single digits year-over-year. So can you just talk about what you think that Cavium revenue growth rate can be off of that base and kind of the 235-ish range going forward? And why is it down that much year-over-year?

Jean，感謝您提供有關 Cavium 來龍去脈的所有詳細信息。對於您或馬特來說，接下來的一個問題是，如果您說 Cavium 的收入在 1 月份的季度中很乾淨，那麼我們剛剛將 2500 萬美元的收入加回[2]。儘管您 10 月份的目標是 2.1 億美元，但同比仍會出現較高的個位數下降。那麼您能否談談您認為 Cavium 收入增長率可能會脫離這個基礎並在未來 235 左右的範圍內？為什麼同比下降這麼多？

Sure. Ross, this is Matt. I'll take this one and let Jean add if she'd like to. So yes, the way to think of it is we're guiding $210 million for Q3. Then, to the best of our knowledge and the analysis we've done, there's $20 million that will still get consumed. So you should assume a $230 million run rate. To answer one part of your question, that's the baseline run rate that we believe we can grow the company off of, based on the annual growth targets that we set when we announced the transaction. The year-over-year change, primarily, you can attribute to inventory, obviously, that we're now going back sort of year in time. And so reconstructing that in infinite detail is challenging, but what we do know is when we look through at the current set of customers, now that we've got Cavium under the Marvell umbrella, we look at the channel inventory and customer inventory and demand patterns, we feel very confident that we'll exit Q3 with inventory, overall normalized to the Marvell levels.

當然。羅斯，這是馬特。如果瓊願意的話，我會接受這個並讓她補充。所以，是的，我們的想法是，我們為第三季度指導 2.1 億美元。然後，據我們所知和所做的分析，仍有 2000 萬美元將被消耗。因此，您應該假設運行率為 2.3 億美元。為了回答你的問題的一部分，這是我們相信我們可以根據我們宣布交易時設定的年度增長目標來發展公司的基準運行率。同比變化主要可以歸因於庫存，顯然，我們現在正在回溯到去年的情況。因此，以無限的細節重建這一點具有挑戰性，但我們所知道的是，當我們查看當前的客戶群時，既然我們已經將 Cavium 納入 Marvell 旗下，我們就會查看渠道庫存以及客戶庫存和需求模式，我們非常有信心我們將在第三季度結束時庫存總體標準化至 Marvell 水平。

Great. And I guess, for my follow-up, just switching gears to the storage side of your business and maybe just the classic Marvell side. Lots of debates these days on the NAND pricing market. I know that doesn't directly correlate to what your SSD business does one way or the other, but this is the first quarter in a while you haven't highlighted what SSDs were as a percent of the business. Can you just give us an update on how that segment of your storage business is ramping?

偉大的。我想，對於我的後續行動，只需將齒輪切換到您業務的存儲方面，也許只是經典的 Marvell 方面。這些天關於 NAND 定價市場的爭論很多。我知道這與您的 SSD 業務的經營方式沒有直接關係，但這是您沒有強調 SSD 在業務中所佔百分比的第一季度。您能否向我們介紹一下您的存儲業務部門的發展情況？

Sure, Ross. No problem. And yes, I think we're adjusting here to having a much broader portfolio of products to talk about. And so with respect to SSD, that business continues to perform well. We've seen multi years now of pretty, pretty strong compounded annual growth in that business. With respect to -- I won't comment specifically on pricing or we're not sort of the barometer on demand and pricing but certainly, I think it's widely reported that supply continues to come free. And I think to that extent, that's going to be good for, certainly, people that supply into this market, including us. I'd also add that on top of all that, our progress and effort to really grow our presence in the enterprise and data center segment of SSD continues to make very good progress. And so I think as you -- we had the Analyst Day plus future calls when we have sort of the Cavium ins and outs settled, we can continue to give you more color there, but we still see strong business in SSD for the company.

當然，羅斯。沒問題。是的，我認為我們正在調整以擁有更廣泛的產品組合可供討論。因此，就 SSD 而言，該業務繼續表現良好。我們已經看到該業務多年來的複合年增長率非常非常強勁。關於——我不會具體評論定價，或者我​​們不是需求和定價的晴雨表，但當然，我認為廣泛報導稱供應繼續免費。我認為從這個意義上說，這當然對向這個市場供貨的人們（包括我們）有利。我還想補充一點，最重要的是，我們在 SSD 企業和數據中心領域真正擴大影響力的進展和努力繼續取得非常好的進展。因此，我認為，正如您一樣，我們召開了分析師日，加上未來的電話會議，當我們解決了 Cavium 的來龍去脈時，我們可以繼續為您提供更多信息，但我們仍然看到該公司在 SSD 方面的強勁業務。

And our next question comes from Vivek Arya with Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

Good to see that Cavium results integrated and all the details. First question, Matt, you mentioned strong sequential growth for Cavium in Q4. What does that imply? Does it get to you back to the $230 million baseline or can it to be stronger than that? I'm just trying to see what a normal Cavium contribution quarter looks like.

很高興看到 Cavium 結果集成和所有細節。第一個問題，Matt，您提到 Cavium 在第四季度的強勁連續增長。這意味著什麼？它是否能讓您回到 2.3 億美元的基準線，或者是否可以比這個基準線更強？我只是想看看正常的 Cavium 貢獻季度是什麼樣子。

Yes. I think I'll focus to -- just to be specific, what I said, which was -- and again, normally, we wouldn't lean out kind of 2 quarters out, that's never been our practice but given the circumstances, we felt we needed to get some color there. So yes, I think the way just to read it very simply is take the $210 million, assume that's the run rate, add $20 million back. And so $210 million going to $230 million is a baseline to think about. Obviously, we're not guiding that formally, and we've got to see how the business does during that time frame. But at this juncture, I think for everybody on the phone and the investors listening, I think that's the best view that we've got at this point. So that's really the growth we're talking about, the $210 million to $230 million.

是的。我想我會重點關注——具體來說，我所說的是——而且，通常情況下，我們不會傾斜兩個季度，這從來不是我們的做法，但考慮到目前的情況，我們覺得我們需要在那裡添加一些顏色。所以，是的，我認為簡單地閱讀它的方法就是拿 2.1 億美元，假設這是運行率，再加上 2000 萬美元。因此，2.1 億美元到 2.3 億美元是需要考慮的基線。顯然，我們並沒有正式指導這一點，我們必須看看業務在這段時間內的表現如何。但在此時此刻，我認為對於電話裡的每個人和聆聽的投資者來說，我認為這是我們目前得到的最好的觀點。這就是我們真正談論的增長，從 2.1 億美元到 2.3 億美元。

Got it. And for my follow-up, Matt, so good job on your gross margins. You're kind of close to the 65% or so pro forma target. And I recall that when you gave that target, Marvell's organic margins were $61 million but now they are $63.5 million. So is it possible that longer term, you could perhaps do better than the pro forma targets you had outlined before?

知道了。對於我的後續行動，馬特，你們的毛利率做得很好。您已經接近 65% 左右的預計目標了。我記得當您設定該目標時，Marvell 的有機利潤為 6100 萬美元，但現在為 6350 萬美元。那麼，從長遠來看，您是否可以比您之前概述的預計目標做得更好？

Okay, yes. Thanks, Vivek. I think, yes, if you go back to when we announced the transaction, you're right. We said 65% was our long-term target and at that time, we were in that range. So we've been very pleased, right, with the performance of core Marvell since we announced this. That business has strengthened on revenue, it's strengthened on gross margin and operating income, and so that's been a nice tailwind heading into the closing of Cavium. We're certainly not -- we're not ready to update our targets at this point, although we have an Analyst Day coming up. But you should assume that the -- one of the guiding principles, I think, that I've infused in the company over the last 2 years has been to really drive the gross margin as a reflection of the quality of the engineering in the company and the value we deliver, and we think it's a huge lever on our company's overall value. So we pay attention to it, we manage it, and we're certainly happy in the first quarter out at the revenue level that we're guiding that we can already be in the 64% to 65% range. So look for us to keep driving that higher over time, but let's wait until Analyst Day to do a more extensive update on what we think we can do.

好吧，是的。謝謝，維韋克。我想，是的，如果你回到我們宣布交易的時候，你是對的。我們說65%是我們的長期目標，當時我們就在這個範圍內。因此，自從我們宣布這一消息以來，我們對 Marvell 核心的性能感到非常滿意。該業務的收入、毛利率和營業收入都得到了加強，因此這對 Cavium 的關閉來說是一個很好的推動力。我們當然沒有——我們現在還沒有準備好更新我們的目標，儘管我們即將迎來分析師日。但你應該假設，我認為，過去兩年我向公司灌輸的指導原則之一是真正提高毛利率，以反映公司的工程質量以及我們提供的價值，我們認為這是對我們公司整體價值的巨大槓桿。所以我們關注它，我們管理它，我們當然對第一季度的收入水平感到高興，我們指導的收入水平已經達到了 64% 到 65% 的範圍。因此，隨著時間的推移，我們將繼續推動這一進步，但讓我們等到分析師日，對我們認為可以做的事情進行更廣泛的更新。

And our next question comes from John Pitzer with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的約翰·皮策 (John Pitzer)。

Congratulations, Matt, on the good start with Cavium. You did a good job kind of outlining the synergies from cost of COGS and OpEx. Wondering if you'd talk a little bit more about, kind of, the icing on the cake, which is the revenue synergies. How do you think -- or how do you see that playing out from sort of the lowest hanging fruit to some of the higher hanging fruit? And I guess, as you answer the question, I'd love to kind of get sort of the customer reaction on the compute site of Cavium, ThunderX, ThunderX2, now that it's a part of your organization, a larger organization, with perhaps more support.

恭喜 Matt，與 Cavium 取得了良好的開端。您很好地概述了 COGS 和 OpEx 成本的協同效應。想知道您是否願意多談談錦上添花，即收入協同效應。您如何看待——或者您如何看待從最容易實現的目標到一些最容易實現的目標的發展？我想，當您回答這個問題時，我很想了解 Cavium、ThunderX、ThunderX2 計算站點上的客戶反應，因為它是您組織的一部分，是一個更大的組織，也許還有更多支持。

Sure. So let me break that into 2 questions, and I'll start with the revenue synergy, which really ties into the customer feedback since we've closed the transaction and certainly, the fact that the customer base and the infrastructure market, right, whether that's cloud or hyperscale data center companies, the leaders in wireless base stations driving the 5G transition or traditional strong enterprise customers, the feedback has been resoundingly positive. And I think what we're finding is a few examples where -- I mean, one I can give is one of our large networking customers where actually, Cavium had more revenue and position than we did. We were chasing design wins there, kind of, for a few years, closed the transaction, engaged at the right level and I think on the basis of the hard work we've put in but also, I think, on the basis of the combined larger relationship. We were awarded sockets on products that we had never had before at that account. And so I think this -- and I think if you look at the switch products we have with our PHY technology plus the processor products from Cavium, we're seeing a lot of cross-selling opportunities. So we're not quantifying the revenue synergies, I want to be clear on that. We've been sort of out of the chute saying, "Hey, any revenue synergy gap would be on top of the growth targets that we've set," but we certainly see strong leading indicators that this could definitely be 1 plus 1 equals more than 2, from that point of view. With respect to Thunder, probably helpful to comment on that as well. That's been an interesting evolution, really, even since we announced the acquisition from sort of us announcing supercomputing. If you remember last year, in 2017, ThunderX2 had a very strong initial showing. Subsequently, if you look at it basically, the parts released to production got strong customer traction. We're shipping it now in production and I think the customer base is looking to us and the ecosystem to really continue to support that effort. Because if you look at the leading benchmarking companies out there like a non-tech and others, ThunderX2 is performing extremely well on especially memory-intensive applications versus Skylake. So that's an emerging business. But what I'd characterize it at right now is strong customer pull, parts out, released. It's a good product. And we'll be happy to update you on that as we make progress there.

當然。因此，讓我將其分為兩個問題，我將從收入協同效應開始，自從我們完成交易以來，這確實與客戶反饋密切相關，當然，客戶群和基礎設施市場，對吧，是否無論是雲或超大規模數據中心公司、推動 5G 轉型的無線基站領導者還是傳統強大的企業客戶，反饋都是非常積極的。我認為我們發現的是一些例子——我的意思是，我可以舉一個我們的大型網絡客戶之一，實際上，Cavium 的收入和地位都比我們高。我們在那裡追逐設計勝利，幾年來，完成了交易，以適當的水平參與，我認為基於我們付出的辛勤工作，而且我認為，基於結合起來更大的關係。我們獲得了該帳戶以前從未有過的產品的插座。所以我認為，如果你看看我們採用 PHY 技術的交換機產品以及 Cavium 的處理器產品，我們會看到很多交叉銷售機會。因此，我們沒有量化收入協同效應，我想澄清這一點。我們有點脫口而出，“嘿，任何收入協同效應差距都將超出我們設定的增長目標”，但我們當然看到了強有力的領先指標，這絕對可能是 1 加 1 等於從這個角度來看，超過2。關於雷霆，對此發表評論可能也有幫助。這確實是一個有趣的演變，即使自從我們宣布收購我們宣布超級計算的公司以來也是如此。如果你還記得去年，2017 年，ThunderX2 的初始表現非常強勁。隨後，如果你從根本上看的話，就會發現投入生產的零件獲得了強大的客戶吸引力。我們現在正在生產中交付它，我認為客戶群正在期待我們和生態系統真正繼續支持這一努力。因為如果你觀察一下領先的基準測試公司（例如非技術公司和其他公司），就會發現與 Skylake 相比，ThunderX2 在內存密集型應用程序上的表現非常出色。所以這是一項新興業務。但我現在將其描述為強大的客戶拉力、零部件、發布。這是一個好產品。隨著我們在這方面取得進展，我們將很樂意向您通報最新情況。

That's helpful, Matt. And maybe as my follow-up, just going back to the core Marvell storage business. Clearly, there's been some more mix data points on the hard drive side of the market. I guess if you look out to your October guidance, is there any color you can give us as to how you're viewing hard drives versus SSDs? And can you remind us again kind of the mix benefit as more moves towards SSDs and/or perhaps the ASP benefit as densities of platters go up within core HDDs?

這很有幫助，馬特。也許作為我的後續內容，我們將回到核心 Marvell 存儲業務。顯然，市場上的硬盤驅動器方面存在更多混合數據點。我想如果您關注 10 月份的指導，您可以告訴我們您如何看待硬盤驅動器與 SSD 的區別嗎？您能否再次提醒我們，隨著更多轉向 SSD 帶來的混合優勢和/或隨著核心 HDD 內盤片密度的增加而帶來的 ASP 優勢？

John, yes, when we look at our storage business, we're actually very pleased with the performance. Looking into Q3 when we guided, frankly, we continue to see our storage business grow year-over-year, including both HDD and the SSD business. SSD business, definitely, is growing double-digit year-over-year. So overall, when we look at it, the momentum with our SSD business continues, and we are pivoting more into the enterprise data center with both our SSD and HDD business. So I think we're very pleased with our overall migration as the percentage of revenue, the enterprise data center becoming increasingly more. When we have our Investor Day, we'll definitely update you about the journey and the progress we have made during the last 1.5 years. So overall, we are pretty happy with the Q3, how we look at the storage business. There's not much significant change from a momentum perspective.

約翰，是的，當我們審視我們的存儲業務時，我們實際上對性能非常滿意。展望第三季度，坦率地說，我們的存儲業務繼續同比增長，包括 HDD 和 SSD 業務。毫無疑問，SSD 業務正以兩位數的速度同比增長。因此，總的來說，我們的 SSD 業務的勢頭仍在繼續，我們的 SSD 和 HDD 業務將更多地轉向企業數據中心。因此，我認為我們對整體遷移佔收入的百分比感到非常滿意，企業數據中心變得越來越多。當我們舉辦投資者日時，我們一定會向您介紹我們在過去 1.5 年中的歷程和取得的進展。總的來說，我們對第三季度以及我們對存儲業務的看法非常滿意。從動量的角度來看，沒有太大的變化。

And John, I'll just add, I think that was a great summary, just to close on that. I think your -- the part you mentioned around the HDD areal density opportunity improvements that we could potentially help enable to drive -- help drive that market forward. We're very much pleased with our progress there. Our latest read channel technology is, I think, going to help enable many new applications as HDDs in the cloud and data center for cold storage push up to higher and higher levels of capacity. And I think we're going to be at the leading -- at the forefront of enabling technologies like HAMR or MAMR or dual actuator. Those are all opportunities for Marvell's differentiated IP and strength in the market to enable a very important part of what we think is going to be the -- for the cloud and hyperscale companies.

約翰，我想補充一點，我認為這是一個很好的總結，只是為了結束這一點。我認為，您提到的有關 HDD 面密度機會改進的部分，我們可能會幫助推動該市場的發展。我們對在那裡取得的進展感到非常滿意。我認為，我們最新的讀取通道技術將有助於實現許多新應用，因為雲中的 HDD 和用於冷存儲的數據中心將容量提升到越來越高的水平。我認為我們將處於領先地位——處於 HAMR 或 MAMR 或雙執行器等支持技術的最前沿。這些都是 Marvell 差異化 IP 和市場實力的機會，可以為雲和超大規模公司實現我們認為的非常重要的部分。

And our next question comes from Blayne Curtis with Barclays.

我們的下一個問題來自巴克萊銀行的 Blayne Curtis。

Just going back to the Cavium revenue, I think you've described it as multiple factors that caused the shortfall. You addressed the inventory portion. I was curious if you'd just address some of the end-market weakness, like service provider, as well as some of the new product forecasts versus actual revenue. And then kind of as you look forward here, can you just describe your level of confidence, at this point, in understanding all those moving pieces?

回到 Cavium 的收入，我認為您已經將其描述為導致收入短缺的多種因素。您解決了庫存部分。我很好奇您是否只想解決一些終端市場的弱點，例如服務提供商，以及一些新產品預測與實際收入的比較。然後，當你展望這裡時，你能描述一下你在這一點上理解所有這些令人感動的部分的信心嗎？

Sure. Sure, Blayne. So I'll give you my perspective on this, and then Jean can add. So I'd say going back to the inventory question and the Cavium revenue, so if you think about it, the inventory that was built, that was sort of, you could imagine, was running at a higher base of inventory than Marvell had ran, whether it was in the channel or in the end customer or, quite frankly, even in the factory. That was fairly broad-based in nature, because that's just how they ran their business. So as we've now owned the company for 8 weeks and again, trying to -- under our watch, the -- I'd say, the inventory now that's impacting the revenue was really around end market, which is primarily the service provider base station market, which is going through its own -- lumpy to begin with. And then you layer on top this 5G transition, which, from everything we're hearing, is going to be meaningful next year and probably pull in certainly ahead of where people thought it would be a year ago. So I think that transition that's looming is causing some lumpiness. And so the bulk of the remainder inventory to be consumed is really in that area, and that's primarily sitting at our OEM customers. But that's how I'd characterize it. If you start broad and you just sort of narrow it down to the $20 million, that's the way to think about it. And to the extent that we continue to be successful in service provider, there's going to be lumpiness in that business. I think everybody understands that. But...

當然。當然，布萊恩。所以我會告訴你我對此的看法，然後讓可以補充。所以我想說回到庫存問題和 Cavium 收入，所以如果你想一想，你可以想像，所建立的庫存的庫存基數比 Marvell 的庫存基數更高，無論是在渠道中還是在最終客戶中，或者坦率地說，甚至在工廠中。這本質上是相當廣泛的，因為這就是他們經營業務的方式。因此，由於我們現在已經擁有這家公司 8 週了，所以在我們的監督下，我想說，現在影響收入的庫存實際上是圍繞終端市場，主要是服務提供商基站市場本身正在經歷著坎坷。然後你再考慮一下 5G 過渡，從我們所聽到的一切來看，這將在明年變得有意義，並且可能肯定會領先於人們一年前的預期。所以我認為即將到來的轉變正在造成一些混亂。因此，要消耗的大部分剩餘庫存實際上都在該領域，而且主要是在我們的 OEM 客戶那裡。但這就是我對它的描述。如果你一開始範圍很廣，然後將範圍縮小到 2000 萬美元，那就是這樣考慮的。只要我們在服務提供商方面繼續取得成功，該業務就會出現混亂。我想每個人都明白這一點。但...

Yes. And also, Blayne, we did say the XPliant and MontaVista, which we sold with the business, those combined revenue, impact revenue run rate is probably about a little bit more than $20 million a year. So that certainly is small, but it's some of the impact, too.

是的。而且，Blayne，我們確實說過 XPliant 和 MontaVista，我們與業務一起出售，這些組合收入，影響收入運行率可能每年略高於 2000 萬美元。所以這當然很小，但這也是一些影響。

Helpful. And then for Jean, just on the OpEx, you're raising the range. I think Cavium came in higher in the March quarter by about that much. I'm just kind of -- how do you think about the increased savings that you're getting? Is it just really the upside that Cavium did or are you finding other areas? And then you had a higher range for a longer time period, I'm just kind of curious if that still holds too off the $200 million.

有幫助。然後，對於 Jean 來說，就 OpEx 而言，您就提高了範圍。我認為 Cavium 在三月份季度的表現大約高出這麼多。我只是——你如何看待你所獲得的增加的儲蓄？這真的只是 Cavium 的優勢還是您正在尋找其他領域？然後你在更長的時間內有一個更高的範圍，我只是有點好奇這是否仍然無法超過 2 億美元。

Yes. I think our combined team, they did a great job to quickly integrate the R&D road map and also, all the other different functions. And so we certainly see the increase in the savings from more efficiency driving through the combination of the team to save more money on some of the investment areas and also on the SG&A support areas. So certainly, how we work through the process is we use the base run rate, the Cavium, as you mentioned, Q1 in 2018 and our last quarter run rate, that's the baseline, right? And then the team literally worked through every line item and every work stream to drive the synergy achievement. And so $200 million, I would say, across-the-board, the increase comes from both R&D and SG&A area.

是的。我認為我們的聯合團隊在快速整合研發路線圖以及所有其他不同功能方面做得非常出色。因此，我們當然會看到通過團隊組合提高效率來節省更多資金，從而在某些投資領域以及 SG&A 支持領域節省更多資金。當然，我們如何完成這個過程是使用基本運行率，Cavium，正如你提到的，2018 年第一季度和我們最後一個季度的運行率，這是基線，對嗎？然後，團隊實際上完成了每個項目和每個工作流，以推動協同效應的實現。因此，我想說，總體而言，2 億美元的增長來自研發和 SG&A 領域。

Yes, but -- and that's perfect, I just want to add one thing, Blayne, which is yes, Cavium OpEx ended up being higher in the March quarter, as you mentioned. But when you go back and even with our original models, right, we always had this $1.3 billion OpEx run rate, that was going to be our target baseline, which is $325 million a quarter. And as the year progressed, right, obviously, Cavium's OpEx was higher, but then Marvell's, as you can see even in our stand-alone results, was $208 million. So while theirs came in higher, ours came in actually lower, we managed it pretty efficiently. So that $1.3 billion run rate, actually, it's still the same. So we didn't -- said another way, getting to $200 million isn't because we were just resetting Cavium to whatever their level was. We looked at it as a combined run rate, and that's just the way that's worked. Hopefully, that's helpful to help you think about it.

是的，但是——這很完美，我只想補充一件事，Blayne，是的，正如您提到的，Cavium OpEx 最終在 3 月份季度更高。但當你回頭看時，即使使用我們最初的模型，我們始終擁有 13 億美元的運營支出運行率，這將是我們的目標基線，即每季度 3.25 億美元。隨著時間的推移，很明顯，Cavium 的運營支出更高，但 Marvell 的運營支出為 2.08 億美元，正如您在我們的獨立業績中看到的那樣。因此，雖然他們的得分較高，但我們的得分實際上較低，但我們管理得相當有效。所以 13 億美元的運行率實際上還是一樣的。所以我們沒有——換句話說，達到 2 億美元並不是因為我們只是將 Cavium 重置到他們的水平。我們將其視為綜合運行率，這就是它的工作方式。希望這對您的思考有所幫助。

And our next question comes from Mark Delaney with Goldman Sachs.

我們的下一個問題來自高盛的馬克·德萊尼。

First question is a follow-up on the synergies topic. And Jean, thanks for all the clarity, but are there remaining OpEx synergies beyond this upcoming quarter? Can you help us understand the linearity that you'd expect to achieve those?

第一個問題是協同效應主題的後續問題。Jean，感謝您的澄清，但在即將到來的季度之後，是否還存在運營支出協同效應？您能幫助我們了解您期望實現這些目標的線性度嗎？

Yes. That's a good question. So as all of you know, the system integration, the ERP integration typically takes 9 to 12 months. So there are a lot of synergy dollars that will be tied to 1 ERP, which typically will come off 4 quarters, 3 or 4 quarters from now. So the way we're thinking about to help you model is the Q3 OpEx is going to be largely flattish at that level. Then the first half of fiscal '20, you should see some step up because of the payroll matching and the merit increase. Then certainly, when ERP happens, you will see the step down to the run rate what we talk about, that Matt mentioned the -- from $325 million run rate before the close of the year to, it may end close to $290 million run rate exiting Q4 2020.

是的。這是個好問題。眾所周知，系統集成、ERP 集成通常需要 9 到 12 個月。因此，有大量的協同資金將與 1 個 ERP 掛鉤，通常會在 4 個季度、3 個或 4 個季度後產生。因此，我們正在考慮幫助您建模的方式是，第三季度的運營支出將在該水平上基本持平。然後，在 20 財年上半年，由於工資匹配和績效增加，您應該會看到一些進步。當然，當 ERP 出現時，你會看到我們所說的運行率下降，馬特提到的——從年底前的 3.25 億美元運行率到最終可能接近 2.9 億美元的運行率2020 年第四季度結束。

Got it. That's helpful. And then for a follow-up question on the HDD controller business, one of your larger customers had announced a factory shutdown, and I know in the past, some of those factory shutdowns have led to some periods of inventory accumulation. And I don't know if that's anything that Marvell has seen or able to quantify or is something which you might be in the upcoming quarters?

知道了。這很有幫助。然後關於硬盤控制器業務的後續問題，你們的一個大客戶宣布工廠關閉，我知道在過去，其中一些工廠關閉導致了一段時期的庫存積累。我不知道 Marvell 是否已經看到或能夠量化這一切，或者您在未來幾個季度可能會遇到什麼？

No, Mark, this is Matt. I'll take it. I think our perspective is the following. We've lived through many of these shutdowns in the 8 quarters I've been on the job here, so this is nothing new in terms of managing through these transitions. Actually, I remember back at the Analyst Day we had in 2017, this had just gone on and the way that we managed it then and we're managing it now, is you should think about that we -- we're very plugged in with those companies in terms of understanding their inventory and their supply chains. And so we've comprehended any transitions that they have in their business in our forecast. I can't really comment more on what each of these companies is doing and the reasons for and the details, but we're very aware of these things, and we have a number of things that we do also to monitor inventory that's at the end customer level as well as their sell-through, and so we have a number of ways that we use -- we manage our forecasting environment, sometimes, when there's these transitions. So all I can say is we're aware of it, we baked it in and it's part of our guidance.

不，馬克，這是馬特。我要買它。我認為我們的觀點如下。在我工作的 8 個季度中，我們經歷了許多此類停工，因此就管理這些過渡而言，這並不是什麼新鮮事。事實上，我記得在 2017 年的分析師日，這種情況剛剛發生，我們當時和現在的管理方式是，你應該考慮一下我們——我們非常投入與這些公司合作，了解他們的庫存和供應鏈。因此，我們在預測中了解了他們業務中的任何轉變。我無法對這些公司正在做的事情以及原因和細節進行更多評論，但我們非常了解這些事情，並且我們還做了很多事情來監控庫存最終客戶水平以及他們的銷售量，因此我們有多種使用的方法 - 有時，當發生這些轉變時，我們管理我們的預測環境。所以我只能說我們已經意識到了這一點，我們已經將其納入其中，並且它是我們指導的一部分。

Our next question comes from Joe Moore with Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬摩爾。

Wondering if you guys could talk about the China tariff situation. Do you see any impact that it's having on your customers, either the first couple of ways or the ways that are coming? And I guess, do you see any risk of customers trying to accumulate inventory to sort of manage moving a geographic footprint around the world?

想知道你們能否談談中國的關稅情況。您認為它對您的客戶有什麼影響嗎？無論是最初的幾種方式還是未來的方式？我想，您是否認為客戶試圖積累庫存以管理全球地理足蹟的任何風險？

Sure. Joe, I'll take it. So yes, I'd say, the first point, just to make, I think you didn't ask it, but I'll just answer it, which is the tariffs themselves have really minimal to no impact on Marvell in terms of us manufacturing in China, and then shipping parts here for consumption in the U.S. So the tariffs directly on us is not really an issue. But as you point out, the bigger concern is what's the global impact of the tariffs on our customer base and does that drive different behavior. And certainly, we're concerned like everybody is about the global economic impact of the trade war escalating. I can't think of any specific issues related to customers that are telling us right now we're buying more inventory or we're taking less because of the tariffs, but we certainly know it's out there, and it's going to -- to the extent that this becomes a larger global GDP issue, then certainly, semiconductor companies will feel it. But I can't help much more than that because I can't give you any direct commentary because we're not getting that when we do our demand pulses right now, but it may be out there.

當然。喬，我會接受的。所以，是的，我想說，第一點，我想你沒有問過，但我只是回答一下，就我們而言，關稅本身對 Marvell 的影響很小甚至沒有影響在中國製造，然後將零件運到這裡供美國消費，因此直接對我們徵收關稅並不是真正的問題。但正如您所指出的，更大的擔憂是關稅對我們客戶群的全球影響是什麼，以及這是否會導致不同的行為。當然，我們像每個人一樣擔心貿易戰升級對全球經濟的影響。我想不出與客戶相關的任何具體問題，他們告訴我們，由於關稅，我們現在正在購買更多庫存，或者我們正在減少庫存，但我們當然知道它就在那裡，而且它將——如果這成為一個更大的全球GDP問題，那麼半導體公司肯定會感受到它。但我無法提供更多的幫助，因為我無法給你任何直接的評論，因為當我們現在進行需求脈衝時我們沒有得到這一點，但它可能就在那裡。

Our next question comes from Karl Ackerman with Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Karl Ackerman。

Two questions, please. Matt and Jean, I want to go back to your comments on the synergy targets. Should we expect all of those cost savings to flow to the bottom line? Or are you looking to repurpose those monies into R&D within the core portfolio? And I guess, as a follow-up, as your portfolio has become more diverse, how do you prioritize R&D for your now very broad networking portfolio? Cavium's rule of thumb was half of sales growth. Is that still the right way to think about spending for your business?

請教兩個問題。馬特和吉恩，我想回到你們對協同目標的評論。我們是否應該期望所有這些成本節約都能轉化為利潤？或者您是否希望將這些資金重新用於核心投資組合的研發？我想，作為後續行動，隨著您的產品組合變得更加多樣化，您如何優先考慮現在非常廣泛的網絡產品組合的研發？Cavium 的經驗法則是銷售額增長一半。這仍然是考慮企業支出的正確方式嗎？

Okay. I'll take your question. Matt, can add on the R&D resource allocation side. So as far as the synergy, our objective is we are targeting $200 million run rate synergy, and they're all going to flow through the bottom line. That part is clear. There's certainly -- there's the time line we just outlined how we are going to achieve that synergy but our objective is to drive the earnings and the shareholder value there. As far as the R&D investment, frankly, Matt mentioned it during his prepared remarks. We just went through our annual strategy and portfolio review. That's the process that we look at all the different product lines to allocate the results among different product lines. So from investment dollar overall perspective, we feel we have the right investment. Matt probably can comment more on the process of how we look at the results allocation.

好的。我來回答你的問題。Matt，可以補充一下研發資源分配方面的內容。就協同效應而言，我們的目標是實現 2 億美元的運行率協同效應，而且它們都將流向利潤。那部分很清楚。當然，我們剛剛概述瞭如何實現協同效應的時間表，但我們的目標是推動盈利和股東價值。至於研發投入，坦率地說，馬特在準備好的發言中提到了這一點。我們剛剛完成了年度戰略和投資組合審查。這就是我們查看所有不同產品線以在不同產品線之間分配結果的過程。因此，從投資美元的整體角度來看，我們認為我們的投資是正確的。馬特可能可以更多地評論我們如何看待結果分配的過程。

Sure, sure. I think -- happy to take that one. So the first comment I'd make is even if you go back to when, as a stand-alone company, we went through our own transformation and we had our own plans there, which was $250 million of OpEx reductions at that time, actually, if you guys remember, we actually invested in key businesses during that time. So it was not just, "Hey, we're going to go take out cost," and everybody suffers. That we used that opportunity as an example to increase our headcount staffing in our SSD and networking areas and I think we're seeing the benefit of that now paying off. And so the way we look at it is, as Jean mentioned, that's $200 million, obviously, to the bottom line. But within that, you should assume there's some add backs that are netted out, meaning we're going to go deeper in some areas, we're going to add back in others, and we view this as one of the most important things we do in the company. We have an annual review where -- and by the way, every company does this differently. As you mentioned, Cavium kind of had a high level way of doing it; take sales growth, cut it in half and higher to that. We have, I think, a pretty rigorous approach to segmenting all of the investments we're making. So we actually have P&Ls now for all the Marvell businesses, all the Cavium businesses. We know what those businesses' relative market shares are, their gross margins, their growth trajectories and ultimately, what their operating margins are and their level of contribution to the company. And then based on that, we make decisions about how we're going to fund those businesses, whether we need to reduce or transfer people or rehire in certain areas. And so even though we're going through our synergy achievement, we have a significant number of open ranks in the company because we're hiring key talent in areas where we think we can grow. And we'll continue to do that and be good stewards of the R&D expense because we view that as the most critical resource we have. And so we deploy it in a very -- but we deploy it in a very thoughtful and data-driven way that, really, you should think of it as a combination of technical analysis on the products and their prospects as well as integrated with the financial analysis. And we've actually empowered the engineering leaders in the company, the business unit leaders as well as my executive staff, so we're looking at those as an integrated way to run the company. And so I know it's a little bit of a longer answer, but for those of you that might be new to the story, that's been the playbook and we plan on continuing that on an ongoing basis.

一定一定。我想——很高興接受這個。因此，我要說的第一條評論是，即使你回到過去，作為一家獨立公司，我們經歷了自己的轉型，我們有自己的計劃，當時實際上減少了​​ 2.5 億美元的運營支出，如果你們還記得的話，那段時間我們實際上投資了關鍵業務。所以這不僅僅是“嘿，我們要取消成本”，然後每個人都受苦。我們以這個機會為例，增加了 SSD 和網絡領域的員工人數，我認為我們現在已經看到了這一點的好處。所以我們看待它的方式是，正如 Jean 提到的，這顯然是 2 億美元的底線。但在這之中，你應該假設有一些添加回來了，這意味著我們將在某些領域進行更深入的研究，我們將在其他領域添加回來，我們認為這是我們最重要的事情之一在公司做。我們每年都會進行一次審查——順便說一句，每家公司的做法都不同。正如您所提到的，Cavium 有一種高水平的方法來做到這一點；將銷售增長減少一半或更高。我認為，我們有一種非常嚴格的方法來劃分我們正在進行的所有投資。因此，我們現在實際上擁有所有 Marvell 業務、所有 Cavium 業務的損益表。我們知道這些企業的相對市場份額、毛利率、增長軌跡，以及最終的營業利潤率和對公司的貢獻水平。然後在此基礎上，我們決定如何為這些企業提供資金，是否需要減少或轉移人員，或者在某些領域重新僱用人員。因此，儘管我們正在取得協同效應，但我們公司仍有大量空缺職位，因為我們正在我們認為可以發展的領域招聘關鍵人才。我們將繼續這樣做，並妥善管理研發費用，因為我們認為這是我們擁有的最重要的資源。因此，我們以一種非常深思熟慮和數據驅動的方式部署它，實際上，您應該將其視為對產品及其前景的技術分析的組合，以及與財務分析。實際上，我們已經為公司的工程領導者、業務部門領導者以及我的執行人員提供了授權，因此我們將這些視為運營公司的綜合方式。所以我知道這個答案有點長，但對於那些可能不熟悉這個故事的人來說，這就是劇本，我們計劃繼續這樣做。

And our next question comes from Craig Ellis with B. Riley FBR.

我們的下一個問題來自 Craig Ellis 和 B. Riley FBR。

Congratulations on the core Marvell performance in the quarter, and appreciate all the financial information. The first question I had was on revenues, Matt, and it's really more of a long-term question. As we look ahead to the fiscal fourth quarter when Cavium's back to a more normalized revenue level, if I understood you correctly, that's the base from which the company can proceed towards the 6% to 8% revenue growth target. So the question is how long does it take to get there? And what are the 3 or 4 key things that need to happen for you to attain that goal on a sustained basis?

祝賀 Marvell 本季度的核心業績，並感謝所有財務信息。我的第一個問題是關於收入，馬特，這實際上是一個長期問題。當我們展望第四財季時，Cavium 將恢復到更正常的收入水平，如果我理解正確的話，這是該公司可以實現 6% 至 8% 收入增長目標的基礎。那麼問題是需要多長時間才能到達那裡？為了持續實現這一目標，您需要做哪些 3 或 4 件關鍵的事情？

Great, yes. So Craig, on the first part, you captured that correctly. At this time, that's our best assessment, which is take the Q4 revenue and then apply the growth rate to it. And certainly, having come off of our strategy review process where we just reviewed all these businesses, we reviewed their next 3-year outlook, we've reviewed how fast the market is growing, and we'll give more details on this on Analyst Day, but from a market perspective, we see the end markets that we're targeting growing at least these kind of rates and certainly, we think if we're being good managers, we should be able to do that or better. I think the high level I would just give you is you think about, really, we have 2 big businesses now that are really portfolios, there's a strong portfolio under each in storage. I think the way to think about that one is it's got 2 very strong cash flow businesses in there where we have significant market share and differentiation, but they're slower growing markets and those are flattish, and those are HDD and fiber channel. And -- but if you layer in our SSD business and our flash business, which we really expanded from SSD controllers to, really, flash-based solutions, as seen at our FMS announcements, that business should continue to grow, so you can do your model thinking about it that way. And then within networking, if you just take a look at core Marvell networking as a pretty good proxy for what one can do in a networking business when you execute on R&D, you've got the right customers, you define the right products, we see that business continuing to grow, right, at double digits or greater. And we also think about OCTEON and Fusion and the processor business from Cavium having a similar type of profile. And again, as I mentioned, some of those we're finding are more than we thought are actually in the same application. So I think the way to think about that is you've got those businesses, you've got our security business, which is making a transition to the cloud, and there's been a number of announcements from large cloud providers on liquid security, so we see that as being a good growth business. And so the networking portion of the total should clearly grow faster than the storage, but I think when you start running your own models and you'll have your own view, based on end markets and what they're doing and based on our own kind of product line by product line view, we think that those targets we set are very achievable. And we're going to drive the company hard to go do that.

太好了，是的。所以克雷格，在第一部分，你正確地捕捉到了這一點。此時，這是我們最好的評估，即採用第四季度的收入，然後應用增長率。當然，在結束我們的戰略審查流程後，我們剛剛審查了所有這些業務，我們審查了他們的下一個 3 年前景，我們審查了市場增長的速度，我們將在分析師上提供更多詳細信息天，但從市場的角度來看，我們看到我們目標的終端市場至少以這種速度增長，當然，我們認為如果我們是優秀的管理者，我們應該能夠做到這一點或更好。我認為我要給你的高水平是你想一想，實際上，我們現在有兩個大業務，它們是真正的投資組合，每個存儲下都有一個強大的投資組合。我認為思考這個問題的方法是，它有兩個非常強大的現金流業務，我們在這些業務中擁有顯著的市場份額和差異化，但它們是增長較慢的市場，而且表現平平，那就是硬盤驅動器和光纖通道。而且 - 但如果你把我們的 SSD 業務和閃存業務分層，我們真的從 SSD 控制器擴展到基於閃存的解決方案，正如我們的 FMS 公告所示，該業務應該繼續增長，所以你可以做你的模型就是這樣思考的。然後在網絡領域，如果您將核心 Marvell 網絡視為一個很好的代理，說明當您執行研發時，您可以在網絡業務中做什麼，您就會擁有正確的客戶，您定義正確的產品，我們看到業務繼續以兩位數或更高的速度增長。我們還認為 OCTEON 和 Fusion 以及 Cavium 的處理器業務具有類似的概況。正如我所提到的，我們在同一應用程序中發現的一些內容實際上比我們想像的要多。因此，我認為思考這個問題的方法是，您擁有這些業務，您擁有我們的安全業務，該業務正在向雲過渡，而且大型雲提供商已經發布了許多關於流動安全的公告，因此我們認為這是一項良好增長的業務。因此，總數中的網絡部分顯然應該比存儲增長得更快，但我認為，當您開始運行自己的模型時，您將根據終端市場和他們正在做的事情以及我們自己的模型有自己的看法從產品線類型來看，我們認為我們設定的目標是非常可以實現的。我們將努力推動公司做到這一點。

And then the follow-up question goes back to comments that you've made on prior calls. You've expressed strong interest in returning to -- cash return via share buyback. Jean outlined debt paydown of $100 million per quarter beyond the current quarter. So in light of debt paydown, when do you expect you can return to share buyback? And Jean, if I could sneak one in for you since every client will be asking it tomorrow, what's the time line to quarterly earnings accretion on the former Cavium business? It doesn't look like we would be getting that in the fiscal third quarter, but can we expect that in the fiscal fourth quarter?

然後後續問題回到您在之前通話中所做的評論。您對通過股票回購獲得現金回報表示了強烈的興趣。Jean 概述了本季度之後每季度償還 1 億美元的債務。那麼，考慮到債務償還，您預計什麼時候可以重返股票回購？Jean，如果我可以偷偷地告訴您一下，因為每個客戶明天都會問這個問題，那麼前 Cavium 業務的季度收益增長的時間線是多少？看起來我們不會在第三財季實現這一目標，但我們能期望在第四財季實現這一目標嗎？

Two questions, right, and so the first one on the cash return. Certainly, we want to target 1.5x gross debt-to-EBITDA ratio. So we do want to pay down the debt quickly. However, the combined company is going to generate a very significant amount of cash flow, right? So we do see -- we should be able to start to consider buyback once we get to 1.5x ratio, which should happen quickly. Our overall view, we'll share more about the capital allocation during our Investor Day. But overall, the strong cash flow generation, we should be able to deploy capital in a way benefit the shareholder the most going forward. Buyback is certainly one for the 2 elements. And we're going to focus on 2. So that's your first question. Second question on accretion. Certainly, right, I think if you look at Q3, as we mentioned earlier, we are resetting Cavium's side of the revenue to make sure their process is aligned with our processes, so we can be more efficiently run the combined business going forward. We do expect accretion in fiscal '20. And frankly, if we diligently manage our $200 million synergy-achieving plan and also really drive top line revenue growth, we do see double-digit accretion when we get to exiting fiscal '20. So we are very optimistic about our capability to run the business. As you know, we have the track record, as a company, to really drive the efficiency and also drive the top line revenue growth.

兩個問題，對吧，第一個問題是關於現金回報的。當然，我們希望將總債務與 EBITDA 比率設定為 1.5 倍。所以我們確實希望盡快還清債務。然而，合併後的公司將產生大量現金流，對嗎？所以我們確實看到——一旦我們達到 1.5 倍的比率，我們應該能夠開始考慮回購，這應該會很快發生。我們的總體觀點是，我們將在投資者日分享更多有關資本配置的信息。但總體而言，由於現金流量強勁，我們應該能夠以最有利於股東的方式部署資本。回購肯定是這兩個要素之一。我們將重點關注 2。這是你的第一個問題。第二個問題，關於吸積。當然，對，我認為如果你看一下第三季度，正如我們之前提到的，我們正在重置 Cavium 方面的收入，以確保他們的流程與我們的流程保持一致，這樣我們就可以更有效地運營未來的合併業務。我們確實預計 20 財年會出現增長。坦率地說，如果我們努力管理 2 億美元的協同效應計劃，並真正推動營收增長，那麼當我們結束 20 財年時，我們確實會看到兩位數的增長。所以我們對我們經營業務的能力非常樂觀。如您所知，作為一家公司，我們擁有真正提高效率並推動營收增長的記錄。

And our next question comes from Quinn Bolton with Needham & Company.

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

Just wanted to come back with the -- that you had sold the MontaVista business but can you say what have you done with the XPliant business?

只是想回來說一下——您已經出售了 MontaVista 業務，但您能說說您對 XPliant 業務做了什麼嗎？

Sure, I can take that, so Quinn. Yes, so on XPliant, that product line and team and critical IP have been largely integrated into the Marvell switching team. So as you guys know, we have a large successful switching group inside of Marvell. There was a lot of discussion and integration planning on R&D on how to take the road map forward. And I think based on -- it was a joint decision between the Cavium team and Marvell team, but everybody agreed that the Prestera architecture, our ROS that we provide was the right way to go. And so we're going to drive that one forward. So that business has now been folded in. Clearly, there's some revenue headwind on the XPliant piece, as we mentioned, because once this was -- even once, actually, the acquisition was even announced, I mean, I think customers who were looking at both sort of were wondering and that definitely had a pause and that is resulting in some of those design wins probably ramping down faster than we thought and certainly, not getting new ones during this time frame. So Cavium, as Jean mentioned, MontaVista plus XPliant is about $20 million a year run rate. MontaVista's out and XPliant will wind down. Although we'll support it, any customer that's designed it in or was in the process of designing in, we're going to support them with our larger engineering team. But that's how you should think about XPliant. It's not a stand-alone business anymore, it's just run as part of Marvell switching.

當然，我可以接受，所以奎因。是的，XPliant 的產品線、團隊和關鍵 IP 已大部分整合到 Marvell 交換團隊中。正如你們所知，我們在 Marvell 內部擁有一個大型成功的切換團隊。關於如何推進路線圖，研發方面進行了大量討論和整合規劃。我認為這是基於——這是 Cavium 團隊和 Marvell 團隊之間的共同決定，但每個人都同意 Prestera 架構、我們提供的 ROS 是正確的選擇。因此，我們將推動這一進程向前發展。所以現在這項業務已經被合併了。顯然，正如我們所提到的，XPliant 項目存在一些收入逆風，因為一旦這——甚至一次，實際上，甚至宣布了收購，我的意思是，我認為正在關注這兩種產品的客戶都在想，這肯定是暫停了，這導致其中一些設計勝利的下降速度可能比我們想像的要快，當然，在這段時間內沒有獲得新的設計勝利。因此，Cavium，正如 Jean 提到的，MontaVista 加上 XPliant 的年運行費約為 2000 萬美元。MontaVista 已經退出，XPliant 也將逐漸消失。儘管我們會支持它，但任何設計它或正在設計它的客戶，我們都將通過我們更大的工程團隊來支持他們。但這就是您應該如何看待 XPliant。它不再是一個獨立的業務，它只是作為 Marvell 交換的一部分運行。

Great. And then a follow up. At Analyst Day, for the core Marvell storage business, I think you were targeting about a 3% growth rate for that business on a both combined HDD, SDD. As you bring in the fiber channel business from Cavium, does that 3% CAGR change at all?

偉大的。然後進行跟進。在分析師日，對於核心 Marvell 存儲業務，我認為您的目標是在 HDD、SDD 組合上實現該業務約 3% 的增長率。當您從 Cavium 引入光纖通道業務時，3% 的複合年增長率是否會發生變化？

So we'll give you an update on our upcoming Analyst Day. But it should not change much, right? Matt just mentioned both HDD and the fiber channel, they're mature business, they generate a tremendous cash flow, and we are going to drive the business to grow flattish with the market at both of those businesses. So we'll share more during our Investor Day about the prospect of our storage business.

因此，我們將向您通報即將到來的分析師日的最新情況。但應該不會有太大變化吧？馬特剛剛提到了硬盤驅動器和光纖通道，它們都是成熟的業務，它們產生巨大的現金流，我們將推動這兩項業務的業務與市場持平。因此，我們將在投資者日分享更多有關我們存儲業務前景的信息。

Yes, I think that's the right forum. If you go back to the last one, a lot changed from now to then, right? I think SSD has significantly outperformed sort of where we thought it would be back then as a market and our own business. And I think Marvell's storage overall has actually done better than we thought. So I think that's the right forum. We'll have more time under our belt and we can give you the full view of the storage portfolio but...

是的，我認為這是正確的論壇。如果你回到上一篇，從現在到那時發生了很多變化，對嗎？我認為 SSD 作為一個市場和我們自己的業務，其表現已經遠遠超出了我們當時的預期。我認為 Marvell 的存儲整體表現實際上比我們想像的要好。所以我認為這是正確的論壇。我們將有更多的時間，我們可以為您提供存儲產品組合的完整視圖，但是......

This concludes today's Q&A session. I would now like to turn the call back over to Ashish Saran for closing remarks.

今天的問答環節到此結束。現在我想將電話轉回給阿希什·薩蘭 (Ashish Saran)，讓其致閉幕詞。

Thanks, everyone, for joining us today. And we look forward to talking to you all again next quarter. Thank you, and goodbye.

謝謝大家今天加入我們。我們期待下個季度再次與大家交談。謝謝，再見。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect. Everyone, have a great day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程序。你們都可以斷開連接。大家，祝你有美好的一天。