邁威爾科技 (MRVL) 2019 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Third Quarter 2019 Marvell Technology Group Ltd. Earnings Conference Call. (Operator Instructions) As a reminder, today's program may be recorded.

女士們、先生們，美好的一天，歡迎來到 Marvell 科技集團有限公司 2019 年第三季度。收益電話會議。（操作員說明） 提醒一下，今天的節目可能會被錄製。

And now, I'd like to introduce your host for today's program, Ashish Saran, Vice President of Investor Relations. Please go ahead.

現在，我想介紹一下今天節目的主持人，投資者關係副總裁 Ashish Saran。請繼續。

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

謝謝大家，大家下午好。歡迎參加 Marvell 2019 財年第三季度財報電話會議。今天與我一起出席的有 Marvell 總裁兼首席執行官 Matt Murphy；以及 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 risk 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 refer 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，我們將提及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。

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

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

Great. Thank you, Ashish, and good afternoon to everyone joining us on the call. The third quarter of fiscal 2019 was the first full quarter that Marvell and Cavium operated as a combined company, and we delivered solid results. Working together, we completed several key integration milestones ahead of schedule, including establishing common operating practices, converging our technology and integrating product roadmaps.

偉大的。謝謝你，阿什什，祝所有參加我們電話會議的人下午好。2019 財年第三季度是 Marvell 和 Cavium 作為合併公司運營的第一個完整季度，我們取得了穩健的業績。我們共同努力，提前完成了幾個關鍵的集成里程碑，包括建立通用操作實踐、融合我們的技術和集成產品路線圖。

During the quarter, we also hosted our Investor Day in New York City, which many of you attended on the call, where we shared our strategy and growth plans for the combined company as we continue our expansion into the infrastructure market. The breadth and depth of our combined portfolios will drive long-term growth in a broad number of areas, including 5G, Ethernet networking, enterprise and data center storage, ARM servers, cloud security, AI, and automotive. During this call, we will provide you with an update on the progress we are making on a number of these growth initiatives, and on our continued drive towards operational excellence.

本季度，我們還在紐約舉辦了投資者日活動，許多人都參加了電話會議，我們在會上分享了合併後公司在繼續向基礎設施市場擴張的過程中的戰略和增長計劃。我們合併後的產品組合的廣度和深度將推動眾多領域的長期增長，包括 5G、以太網、企業和數據中心存儲、ARM 服務器、雲安全、人工智能和汽車。在本次電話會議中，我們將向您介紹我們在多項增長計劃方面所取得的最新進展，以及我們持續推動卓越運營的情況。

Now I'd like to cover the results of our third fiscal quarter. Our GAAP revenue was $851 million, GAAP gross margin was 45.1%, and GAAP loss per diluted share was $0.08.

現在我想介紹一下我們第三財季的業績。我們的 GAAP 收入為 8.51 億美元，GAAP 毛利率為 45.1%，GAAP 攤薄每股虧損為 0.08 美元。

Now switching to our non-GAAP results. Marvell's revenue for the third quarter came in above the midpoint of our guidance at $851 million, driven by strong performance from our networking business and solid performance from our storage business, which met our expectations.

現在轉向我們的非公認會計原則結果。Marvell 第三季度收入達到 8.51 億美元，高於我們指引的中值，這得益於網絡業務的強勁表現和存儲業務的穩健表現，滿足了我們的預期。

As you may recall, during last quarter's earnings call, we had identified approximately $20 million of excess inventory being held at Cavium customers, which was impacting our revenue expectations for the third quarter. This excess inventory was depleted during the third quarter and revenue from Cavium products came in slightly above our prior estimate of approximately $210 million.

您可能還記得，在上季度的財報電話會議上，我們發現 Cavium 客戶持有約 2000 萬美元的過剩庫存，這影響了我們第三季度的收入預期。多餘的庫存在第三季度被耗盡，Cavium 產品的收入略高於我們之前估計的約 2.1 億美元。

In the third quarter, we continued to improve our non-GAAP gross margin, reaching 64.6%, 10- basis points above the midpoint of our guidance, and we continue to expand gross margin over the coming quarters.

第三季度，我們繼續提高非 GAAP 毛利率，達到 64.6%，比指導中值高出 10 個基點，並且我們將在未來幾個季度繼續擴大毛利率。

Marvell's non-GAAP operating margin for the third quarter was 29.7%, non-GAAP earnings per share was $0.33, just above the midpoint of guidance. Now moving to our core businesses of storage, and then, networking. Our storage business, which includes a fiber channel products and Marvell's HDD and flash storage controller products, performed well, meeting our expectations with revenue of $407 million. Storage controller revenue increased sequentially quarter-to-quarter, with a seasonal increase from all storage markets.

Marvell 第三季度的非 GAAP 運營利潤率為 29.7%，非 GAAP 每股收益為 0.33 美元，略高於指導中值。現在轉向我們的核心業務：存儲，然後是網絡。我們的存儲業務（包括光纖通道產品以及 Marvell 的 HDD 和閃存存儲控制器產品）表現良好，達到了我們的預期，收入達到 4.07 億美元。存儲控制器收入環比增長，所有存儲市場均出現季節性增長。

On a year-over-year basis, revenue from storage Controller shipping into the enterprise and data center market grew by approximately 30% year-over-year, which more than offset the year-over-year decline from the PC market. Our fiber channel business slightly exceeded expectations.

與去年同期相比，運往企業和數據中心市場的存儲控制器的收入同比增長了約30%，這遠遠抵消了PC市場的同比下降。我們的光纖通道業務略超預期。

Looking ahead to the fourth quarter and similar to what you have heard from many of our storage customers, we are also forecasting weak demand. There are several factors hurting this market, including PC CPU shortages, trade tensions, moderating cloud CapEx, and large inventory increases at our customers. Given these headwinds, we expect storage revenue in the fourth quarter to sequentially decline by about 10%. However, we remain bullish on the long-term prospects of our storage business.

展望第四季度，與您從我們許多存儲客戶那裡聽到的情況類似，我們也預測需求疲軟。有幾個因素損害了這個市場，包括 PC CPU 短缺、貿易緊張、雲資本支出放緩以及我們客戶的庫存大量增加。考慮到這些不利因素，我們預計第四季度存儲收入將環比下降約 10%。然而，我們仍然看好存儲業務的長期前景。

During the third quarter, we won several storage controller designs that will continue to diversify our storage business by adding significant future revenue streams outside the PC market. These wins include 3 data center sockets and an EDGE video surveillance application. We expect these wins to start ramping late next year and into fiscal 2021, and help drive growth in our storage revenue.

在第三季度，我們贏得了多項存儲控制器設計，這些設計將通過增加 PC 市場之外的重要未來收入來源，繼續使我們的存儲業務多元化。這些成果包括 3 個數據中心插座和 EDGE 視頻監控應用程序。我們預計這些成果將在明年年底和 2021 財年開始逐步擴大，並有助於推動我們存儲收入的增長。

We also sampled our new flash platform solutions, which include NVMe aggregators, accelerators and converters, with several Tier 1 server and storage OEMs. Aggregators increased SSD densities to maximize throughput for new emerging SSD form factors and architectures. Accelerators and converters reduced the need for additional servers, while optimizing overall data storage utilization, performance and scalability.

我們還與多家一級服務器和存儲 OEM 一起對新的閃存平台解決方案進行了採樣，其中包括 NVMe 聚合器、加速器和轉換器。聚合器增加了 SSD 密度，以最大限度地提高新興 SSD 外形尺寸和架構的吞吐量。加速器和轉換器減少了對額外服務器的需求，同時優化了整體數據存儲利用率、性能和可擴展性。

Early customer reaction has been extremely positive, and these products, once again, demonstrate that Marvell is continuing to drive innovation in the storage market. The success of these initiatives will contribute to additional growth in our storage revenue from the enterprise and data center markets.

早期客戶反應非常積極，這些產品再次表明 Marvell 正在繼續推動存儲市場的創新。這些舉措的成功將有助於我們在企業和數據中心市場的存儲收入的進一步增長。

Moving on to networking. Our networking business includes Ethernet switches and Fis, embedded processors, Wi-Fi connectivity, security products, Ethernet connectivity and ARM-server processors. All together, we have a very broad and diverse set of networking products.

繼續討論網絡。我們的網絡業務包括以太網交換機和 Fi、嵌入式處理器、Wi-Fi 連接、安全產品、以太網連接和 ARM 服務器處理器。總之，我們擁有非常廣泛且多樣化的網絡產品。

Our networking business performed above expectations, delivering $398 million in revenue, driven by solid results from our OCTEON family of high-end embedded processors and strong demand from Marvell's Ethernet switch and Fi products.

在 OCTEON 系列高端嵌入式處理器的強勁業績以及 Marvell 以太網交換機和 Fi 產品的強勁需求的推動下，我們的網絡業務表現超出預期，實現了 3.98 億美元的收入。

Embedded processors had a good quarter, with stable demand from the enterprise market, and as expected, our service provider OEMs depleted excess processor inventory they had built up over the past few quarters. In addition, during the quarter, we started shipping embedded processors into trial 5G deployments, which are a strong precursor for larger rollouts in the next year.

嵌入式處理器季度表現良好，企業市場需求穩定，正如預期的那樣，我們的服務提供商 OEM 耗盡了過去幾個季度積累的多餘處理器庫存。此外，在本季度，我們開始將嵌入式處理器投入 5G 試驗部署，這是明年更大規模部署的有力先兆。

As we detailed at our Investor Day, we expect 5G base stations to be a significant long-term growth driver for Marvell as our dollar content in these deployments is substantially higher than what we currently have in 4G. We anticipate our platform solution, which includes our 5G baseband processors, embedded processors, and Ethernet switches and Fis, to start ramping late next year as we have already secured a significant design win for our full 5G solution with a leading base station customer. In addition, since Investor Day, our momentum has continued in 5G engagements with additional Tier 1 customers.

正如我們在投資者日詳述的那樣，我們預計 5G 基站將成為 Marvell 的重要長期增長動力，因為我們在這些部署中的美元含量遠高於目前 4G 的美元含量。我們預計我們的平台解決方案（包括 5G 基帶處理器、嵌入式處理器以及以太網交換機和 Fi）將在明年底開始量產，因為我們已經獲得了一家領先基站客戶的完整 5G 解決方案的重大設計勝利。此外，自投資者日以來，我們與其他一級客戶的 5G 合作繼續保持勢頭。

Marvell's Ethernet switch and Fi business delivered another strong performance as new products continue to ramp in the enterprise market. Revenue grew by approximately 30% year-on-year. Our refreshed portfolio continues to gain momentum with customers, and we won several new sockets during the quarter. These include a switch design with a major server OEM, and several Fi wins with a top networking OEM. We believe our continued progress in the enterprise, combined with the 5G opportunity in the service provider market, will fuel significant long-term growth.

隨著新產品在企業市場的不斷湧現，Marvell 的以太網交換機和 Fi 業務再次表現強勁。收入同比增長約30%。我們更新後的產品組合繼續獲得客戶的青睞，我們在本季度贏得了多個新插座。其中包括與主要服務器 OEM 合作的交換機設計，以及與頂級網絡 OEM 合作的多項 Fi 項目。我們相信，我們在企業領域的持續進步，加上服務提供商市場的 5G 機遇，將推動顯著的長期增長。

As expected, our Wi-Fi revenue declined due to our planned transition away from older connectivity products. We expect our Wi-Fi business to seasonally bottom out in the fourth quarter, then start growing again as we ramp our next generation of Wi-Fi, 802.11 AX, which is now called Wi-Fi 6. We have the industry's most complete and fully-compliant set of Wi-Fi 6 products, which are gaining strong traction with leading customers. These include 8x8, 4x4, and 2x2 SOCs, targeted at the enterprise and retail access points, carrier gateways, as well as the automotive and premium home markets.

正如預期的那樣，由於我們計劃放棄舊的連接產品，我們的 Wi-Fi 收入有所下降。我們預計我們的 Wi-Fi 業務將在第四季度季節性觸底，然後隨著我們推出下一代 Wi-Fi 802.11 AX（現在稱為 Wi-Fi 6）而再次開始增長。完全兼容的 Wi-Fi 6 產品系列，受到領先客戶的強烈關注。其中包括 8x8、4x4 和 2x2 SOC，針對企業和零售接入點、運營商網關以及汽車和高端家庭市場。

Our ARM server CPU business continued to make progress with several cloud and high-performance computing customers who are qualifying our ThunderX2 family of processors. Given the complexity of introducing a new architecture, we expect this evaluation to continue over the next few quarters.

我們的 ARM 服務器 CPU 業務繼續取得進展，多家云和高性能計算客戶正在對我們的 ThunderX2 系列處理器進行資格認證。考慮到引入新架構的複雜性，我們預計這項評估將在接下來的幾個季度繼續進行。

In addition, Marvell was recently awarded funding from the Los Alamos National Laboratory to develop next-generation, high-performance ARM processors, optimized for exascale workloads. And at the recently-completed supercomputing conference, there were multiple customer and partner announcements highlighting their adoption of ThunderX2. Meanwhile, Sandia, NRL, GW4 and Gen C, released a number of benchmarks, which demonstrate the compelling performance of ThunderX2 over alternative server processors.

此外，Marvell 最近獲得了洛斯阿拉莫斯國家實驗室的資助，用於開發針對百億億次工作負載進行優化的下一代高性能 ARM 處理器。在最近結束的超級計算會議上，多個客戶和合作夥伴宣布了他們對 ThunderX2 的採用。與此同時，Sandia、NRL、GW4 和 Gen C 發布了許多基準測試，證明 ThunderX2 相對於替代服務器處理器具有令人信服的性能。

Notably, Sandia's Astro supercomputer, which is based on HPE's Apollo 70, and powered by ThunderX2, became the world's first ARM-based computer to enter the top 500 supercomputer list. And finally, last week, Amazon Web services announced an ARM-based public cloud offering based on their processor. This is a major endorsement of ARM-based servers by another Tier 1 cloud vendor, and meaningfully broadens the ARM ecosystem. Millions of end-users will now have the opportunity to run their workloads hosted on an infrastructure powered by ARM, and we believe that this milestone will help accelerate future ARM server deployments.

值得注意的是，桑迪亞的Astro超級計算機基於HPE的Apollo 70並由ThunderX2提供支持，成為世界上第一台進入超級計算機500強榜單的基於ARM的計算機。最後，上週，亞馬遜網絡服務宣布推出基於 ARM 處理器的公共雲產品。這是另一家一級雲供應商對基於 ARM 的服務器的重大認可，並且有意義地拓寬了 ARM 生態系統。數百萬最終用戶現在將有機會在 ARM 提供支持的基礎設施上運行其工作負載，我們相信這一里程碑將有助於加速未來 ARM 服務器的部署。

We are also making strong progress in our new initiatives, including automotive, AI inference, and cloud security, with a very robust design win funnel at several key customers.

我們在汽車、人工智能推理和雲安全等新舉措方面也取得了強勁進展，並在幾個關鍵客戶中建立了非常強大的設計贏得渠道。

In summary, our networking business delivered a solid third quarter. Looking ahead, we expect low single-digits sequential revenue growth for this business in the fourth quarter, primarily from an increase in demand from the service provider market for our embedded and baseband processors.

總而言之，我們的網絡業務第三季度表現強勁。展望未來，我們預計第四季度該業務的收入將出現低個位數的環比增長，這主要是由於服務提供商市場對我們的嵌入式和基帶處理器的需求增加。

Turning to our other products, which are our legacy products, revenue was $46 million, and we expect this category to decline by about 10% sequentially in the fourth quarter.

轉向我們的其他產品，即我們的傳統產品，收入為 4600 萬美元，我們預計第四季度該類別將環比下降約 10%。

For the fourth quarter at the midpoint of guidance, we expect $810 million in consolidated company revenue and $0.32 in non-GAAP earnings per share. We also expect to increase non-GAAP gross margin to 65% and lower non-GAAP operating expenses to $287.5 million at the midpoint.

對於第四季度的指導中點，我們預計公司合併收入為 8.1 億美元，非 GAAP 每股收益為 0.32 美元。我們還預計將非 GAAP 毛利率提高至 65%，並將非 GAAP 運營費用中值降低至 2.875 億美元。

In closing, while we need to navigate through some short-term market headwinds in the storage business, we continue to benefit from positive trends in our other businesses. First, Ethernet switch and Fi business has maintained a double-digit year-on-year growth rate over several quarters, and we expect this to continue into the fourth quarter.

最後，雖然我們需要克服存儲業務的一些短期市場阻力，但我們繼續受益於其他業務的積極趨勢。首先，以太網交換機和Fi業務連續幾個季度保持兩位數的同比增長，我們預計這種情況將持續到第四季度。

Second, we expect growth in the Cavium business, and at the midpoint of our guidance, we are projecting this business to grow double-digit sequentially to approximately $240 million of revenue in the fourth quarter. We have now fully integrated Cavium and going forward, we will not be delineating revenue between Marvell and Cavium.

其次，我們預計 Cavium 業務將實現增長，並且在我們指導的中期，我們預計該業務將連續兩位數增長，第四季度收入約為 2.4 億美元。我們現已完全整合 Cavium，今後我們將不會劃分 Marvell 和 Cavium 之間的收入。

Third, 5G trials have started, which we believe will turn into larger deployments that will drive significant revenue growth from existing design wins and from ongoing engagements with additional Tier 1 base station OEMs. We expect to be a leading supplier of merchant silicon for 5G base stations when they ramp to production based on our end-to-end portfolio.

第三，5G 試驗已經開始，我們相信這將轉變為更大規模的部署，從而通過現有的設計勝利以及與其他一級基站 OEM 的持續合作來推動收入的顯著增長。當 5G 基站基於我們的端到端產品組合投入生產時，我們預計將成為 5G 基站商用芯片的領先供應商。

Fourth, despite anticipating lower revenue in the fourth quarter, we still expect to increase gross margins to 65%. We also project to continue increasing gross margins next year as we complete our planned $50 million of COGS-related integration synergies. Throughout all of this, we will continue to tightly manage OpEx and drive operating margins, while continuing to invest in the long-term growth initiatives we outlined at our Investor Day.

第四，儘管預計第四季度收入較低，但我們仍預計毛利率將提高至 65%。隨著我們完成計劃的 5000 萬美元的銷貨成本相關整合協同效應，我們還預計明年將繼續提高毛利率。在這一切過程中，我們將繼續嚴格管理運營支出並提高運營利潤率，同時繼續投資於我們在投資者日概述的長期增長計劃。

Lastly, I'm pleased to report that we delivered free cash flow at 30% of revenue this quarter, which is a strong result. We are putting this excess cash to good use by reducing debt and returning it to shareholders through buybacks and dividends.

最後，我很高興地向大家報告，本季度我們的自由現金流佔收入的 30%，這是一個強勁的結果。我們通過減少債務並通過回購和股息將其返還給股東，充分利用這些多餘的現金。

All together, these achievements represent another solid quarter for Marvell. With the foundation and momentum we are building, combined with the opportunities in front of us, I am as excited as ever about our progress and long-term potential.

總而言之，這些成就代表了 Marvell 又一個堅實的季度。憑藉我們正在建立的基礎和動力，再加上我們面前的機遇，我對我們的進步和長期潛力一如既往地感到興奮。

Let me just close by recognizing and thanking Marvell's 5,000-plus employees around the world for their hard work and contributions during the quarter. As a result of their efforts, we continue to make great progress towards building the next great semiconductor company.

最後，我要對 Marvell 全球 5,000 多名員工在本季度的辛勤工作和貢獻表示認可和感謝。在他們的努力下，我們在打造下一個偉大的半導體公司方面不斷取得巨大進展。

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

接下來，讓我將電話轉給我們的首席財務官 Jean Hu，了解有關我們第三季度業績和第四季度前景的更多詳細信息。

Thanks, Matt, and good afternoon, everyone. I'll start with a review of our financial results for the third quarter for fiscal 2019, and then, provide our current outlook for the fourth quarter for fiscal 2019. Please note, our GAAP results reflect purchase price accounting, amortization of intangibles, acquisition, and the integration related to nonrecurring expenses, as well as the stock-based compensation.

謝謝馬特，大家下午好。我將首先回顧我們 2019 財年第三季度的財務業績，然後提供我們對 2019 財年第四季度的當前展望。請注意，我們的公認會計準則結果反映了購買價格會計、無形資產攤銷、收購以及與非經常性費用相關的整合以及基於股票的薪酬。

Revenue in the third quarter was $851 million, about the middle point of the outlook provided in September. Our COG business of storage and the networking counted for 95% of revenue.

第三季度收入為 8.51 億美元，約為 9 月份展望的中間值。我們的存儲和網絡 COG 業務佔收入的 95%。

Storage accounted for 48% of revenue, in line with our expectations. Networking accounted for 47% of revenue, better than expectations. Other products accounted for 5% of revenue. GAAP gross margin was 45.1%, which included $103 million for amortization of Cavium inventory step-up cost. As a reminder, we stepped up Cavium inventory cost as part of acquisition purchase price accounting. We anticipate amortizing the remaining balance of $98 million by the end of the fourth quarter for fiscal 2019.

存儲佔收入的48%，符合我們的預期。網絡業務佔收入的47%，好於預期。其他產品佔收入的5%。GAAP 毛利率為 45.1%，其中包括用於 Cavium 庫存增加成本的攤銷 1.03 億美元。提醒一下，我們提高了 Cavium 庫存成本，作為收購採購價格核算的一部分。我們預計到 2019 財年第四季度末攤銷剩餘餘額 9800 萬美元。

Our non-GAAP gross margin was 64.6%, a 90- basis points improvement from the prior quarter and it reflects the operating mix of the combined company. GAAP operating expenses were $404 million. Non-GAAP operating expenses were $297 million, approximately $5 million below our middle point of the guidance provided in September. This was a result of the faster than expected realization of the integration synergies, and our continued focus on operational excellence in managing our core operating expense.

我們的非 GAAP 毛利率為 64.6%，比上一季度提高 90 個基點，反映了合併後公司的運營組合。GAAP 運營費用為 4.04 億美元。非 GAAP 運營費用為 2.97 億美元，比我們 9 月份提供的指導中點低約 500 萬美元。這是由於整合協同效應的實現速度比預期更快，以及我們在管理核心運營費用方面持續關注卓越運營的結果。

Non-GAAP operating margin was 29.7%. GAAP loss per diluted share was $0.08 and the non-GAAP earnings per diluted share was $0.33, above the middle point of our guidance range.

非 GAAP 運營利潤率為 29.7%。GAAP 攤薄每股虧損為 0.08 美元，非 GAAP 攤薄每股收益為 0.33 美元，高於我們指導範圍的中點。

Now turning to our balance sheet and the cash flow statement. We generated $299 million in cash flow from operating activities in the third quarter, and this result include the cash impact related to Cavium merger and the restructuring activities. Capital expenditures were $13 million, and the depreciation was $39 million. We also spent $33 million on purchases and the payment for technology license obligations in the third quarter.

現在轉向我們的資產負債表和現金流量表。第三季度我們的經營活動產生了 2.99 億美元的現金流，這一結果包括與 Cavium 合併和重組活動相關的現金影響。資本支出為 1300 萬美元，折舊為 3900 萬美元。第三季度我們還花費了 3300 萬美元用於採購和支付技術許可義務。

Our resulting free cash flow for the third quarter was $254 million, or 30% of revenue. In the third quarter, we paid down $75 million of our long-term debt and returned $93 million to shareholders through $54 million in share repurchases, and $39 million in dividend. We exit the quarter with $610 million in cash and short-term investments, an increase of $87 million from the end of the prior quarter. Our long-term debt was $1.8 billion, and we expect to continue to pay down debt to achieve our target leverage ratio.

我們第三季度的自由現金流為 2.54 億美元，佔收入的 30%。第三季度，我們償還了 7500 萬美元的長期債務，並通過 5400 萬美元的股票回購和 3900 萬美元的股息向股東返還了 9300 萬美元。本季度結束時，我們擁有 6.1 億美元的現金和短期投資，比上一季度末增加了 8700 萬美元。我們的長期債務為 18 億美元，我們預計將繼續償還債務以實現我們的目標槓桿率。

Let me now move on to our current outlook for the fourth quarter for fiscal 2019. We expect our revenue to be in the range of $790 million to $830 million. Our expected GAAP gross margin will be approximately 46%, and our non-GAAP gross margin will be approximately 65%. We expect our GAAP operating expenses to be between $375 million and $385 million, and the non-GAAP operating expenses to be in the range of $285 million to $290 million. At the middle point of this outlook, our non-GAAP operating expense would reflect achievement of $120 million of operating expenses synergies, and our continued focus on managing our core operating expense.

現在讓我談談我們目前對 2019 財年第四季度的展望。我們預計我們的收入將在 7.9 億至 8.3 億美元之間。我們預計 GAAP 毛利率約為 46%，非 GAAP 毛利率約為 65%。我們預計 GAAP 運營費用將在 3.75 億美元至 3.85 億美元之間，非 GAAP 運營費用將在 2.85 億美元至 2.9 億美元之間。在這一展望的中間點，我們的非 GAAP 運營費用將反映 1.2 億美元的運營費用協同效應的實現，以及我們繼續專注於管理核心運營費用。

And our current planning assumptions projects operating expense [accessing] fiscal 2020 to be approximately $10 million lower on a quarterly run-rate basis from the $290 million we had provided during our Investor Day. As a reminder, our operating expenses have a certain amount of seasonality and tend to increase in the Q1 of our fiscal year, driven primarily by employee payroll taxes, matching contribution, and our annual merit process.

我們目前的規劃假設預計 2020 財年的運營費用按季度運行費率將比我們在投資者日期間提供的 2.9 億美元減少約 1000 萬美元。需要提醒的是，我們的運營支出具有一定的季節性，並且在本財年第一季度往往會增加，這主要是由員工工資稅、匹配繳款和我們的年度績效流程推動的。

We anticipate that these factors will drive our operating expense in the Q1 of fiscal 2020 to just above $300 million. We anticipate operating expense to then reduce as we progress into the rest of fiscal 2020 and exit the year at a quarterly run rate of $280 million.

我們預計這些因素將使我們 2020 財年第一季度的運營支出略高於 3 億美元。我們預計，隨著 2020 財年剩餘時間的到來，運營費用將會減少，並以 2.8 億美元的季度運行費用結束這一年。

We expect our non-GAAP tax rate to be approximately 4%, and net interest expense to be $20 million. We expect GAAP loss per diluted share in the range of $0.05 to $0.01, and the non-GAAP income per diluted share in the range of $0.30 to $0.34.

我們預計非 GAAP 稅率約為 4%，淨利息支出為 2000 萬美元。我們預計 GAAP 攤薄後每股虧損將在 0.05 至 0.01 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 to take your questions. Operator, please open the line for questions.

我們現在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 the line of John Pitzer from Credit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸銀行的 John Pitzer。

Matt, congratulations on the solid results, given the difficult environment. Matt, my first question is just on the storage guidance. You're guiding the overall storage business down about 10% sequentially into the fiscal fourth quarter. Kind of curious if you could help us give us some color to how that breaks out between fiber channel, HDD and SSD? Are they all down about the same? Or are you still seeing some secular growth drivers in the SSD business? That'd be helpful.

馬特，祝賀您在困難的環境下取得了堅實的成果。馬特，我的第一個問題只是關於存儲指南。進入第四財季，您將引導整體存儲業務環比下降約 10%。有點好奇您能否幫助我們了解一下光纖通道、HDD 和 SSD 之間的區別？他們都一樣嗎？或者您仍然看到 SSD 業務有一些長期增長動力嗎？那會有幫助的。

Great. Thanks, John. So yes, to answer your question, we see all of our subsegments of storage down, fiber channel less, and then, our storage controllers, which is classic Marvell, down more. So equal to 10%.

偉大的。謝謝，約翰。所以，是的，為了回答你的問題，我們看到我們所有的存儲子部分都下降了，光纖通道減少了，然後我們的存儲控制器（這是經典的 Marvell）下降了更多。所以等於10%。

Is there a big difference between HDD and SSD?

HDD 和 SSD 有很大區別嗎？

Both are down and both are very weak, when you look across the range of customers. So I would say, directionally, both are down. The entire storage business, whether it's cold storage or hot storage, is being hit.

當你縱觀整個客戶群時，兩者都在下降，而且都非常疲弱。所以我想說，從方向上看，兩者都在下降。整個存儲業務，無論是冷存儲還是熱存儲，都受到了打擊。

That's helpful. And then as my follow-up, just on the 5G opportunity. I like the fact that you're highlighting more than just one Tier 1. If memory serves me correct, Cavium had a strong position at Samsung. I'm kind of curious, as you look to broaden out the OEM exposure, how long does that process take? And again, can you help me understand the TAM opportunity here? Our math would suggest that you've got an opportunity to capture, maybe, $2,500 of content per base station, and potentially, a market that might have 1 million base stations per year. Does that feel like the right ballpark?

這很有幫助。然後作為我的後續行動，就 5G 機會而言。我喜歡這樣一個事實，即您強調的不僅僅是一個一級。如果我沒記錯的話，Cavium 在三星擁有強大的地位。我有點好奇，當您希望擴大 OEM 曝光範圍時，這個過程需要多長時間？再說一次，您能幫我了解這裡的 TAM 機會嗎？我們的數學表明，您有機會捕獲每個基站可能價值 2,500 美元的內容，並且潛在的市場每年可能擁有 100 萬個基站。這感覺是正確的嗎？

Sure. So I'll break it to the 2 pieces. One is, how is the progress going with the largest lead customer that we brought over from Cavium, and then second, on the content. So on the first one, we continue to do very well with the lead customer, and we're encouraged by their progress in the end market, in terms of them expanding their footprint, not only in Asia, but also, domestically, here in the U.S. And what I'd say is the solution we have is very compelling because it's a platform solution, and so we continue to get a lot of interest in -- actually, all aspects of the portfolio. The Fusion, M, baseband, OCTEON for processing, and then, our Ethernet switches and Fis. And so this is something we'll keep you updated on, but just directionally, we thought it would be helpful to share that we continue to build with good momentum in terms of engagements on 5G. With respect to content, you're in the right ZIP Code when -- and the type of content that you mentioned -- when we're all-in with our full platform solution, and that's certainly something that we expect with our large customer, and that would be -- that would be, I think, in the range of where you say the Tam would be for our full solution at a base station.

當然。所以我會把它分成兩塊。一是我們從 Cavium 帶來的最大的主要客戶的進展情況如何，二是內容。因此，在第一個方面，我們繼續與主要客戶合作得很好，我們對他們在終端市場上取得的進展感到鼓舞，他們不僅在亞洲，而且在國內，擴大了他們的足跡。我想說的是，我們擁有的解決方案非常引人注目，因為它是一個平台解決方案，因此我們繼續對產品組合的各個方面產生濃厚的興趣。Fusion、M、基帶、OCTEON 進行處理，然後是我們的以太網交換機和 Fis。因此，我們將隨時向您通報最新情況，但只是從方向上來說，我們認為分享我們在 5G 合作方面繼續保持良好勢頭會有所幫助。就內容而言，當我們全力以赴使用我們的完整平台解決方案時，以及您提到的內容類型，您就處於正確的郵政編碼中，這當然是我們對大客戶的期望，我認為，這將是在你所說的 Tam 為我們的基站提供完整解決方案的範圍內。

Our next question comes from the line of Ross Seymore from Deutsche Bank.

我們的下一個問題來自德意志銀行的 Ross Seymore。

I want to go back to the storage side. Matt, the answer to the prior question, the details are very helpful for the given quarter. But I wanted to see what your thoughts were on the duration of this weakness? I know there's a lot of moving parts from it, but how do you judge -- whether it's an aggregate or it's a storage business, or the different moving parts within it, how long this weakness is going to last? And maybe even what does it mean to seasonality in your April quarter, considering you're coming off such a weak January?

我想回到存儲方面。馬特，上一個問題的答案，詳細信息對特定季度非常有幫助。但我想知道你對這種弱點的持續時間有何看法？我知道其中有很多變化因素，但你如何判斷——無論是總體還是存儲業務，或者其中的不同變化部分，這種疲軟會持續多久？考慮到一月份的表現如此疲弱，這對四月份季度的季節性意味著什麼？

Sure. So the commentary that we're hearing from our customers, and I think you hear the same thing, is people are saying this is a "couple of quarters" in terms of the duration. It's very hard to call. And in fact, where we sit in the supply chain, we're one step removed or one step behind. So if you look at end OEMs that are consuming drive that have our controllers in them, we tend to be further back in the supply chain. So we're not as close as the customers to it, but certainly, their outlook, we tend to agree with, and we're sort of following their lead. We'll prepare, obviously, to the extent that things come back earlier, but we're planning for this to be several quarters.

當然。因此，我們從客戶那裡聽到的評論，我想你們也聽到了同樣的說法，就是人們說，就持續時間而言，這是“幾個季度”。打電話非常困難。事實上，我們在供應鏈中的位置，要么落後一步，要么落後一步。因此，如果你看看正在使用裝有我們控制器的驅動器的終端原始設備製造商，我們往往處於供應鏈的更靠後的位置。因此，我們與客戶的關係並不那麼密切，但當然，我們傾向於同意他們的觀點，並且我們正在追隨他們的領導。顯然，我們會做好準備，讓事情早點恢復，但我們計劃這需要幾個季度。

Great. And I guess, as my follow-up question was, one of the comments you had in your preamble was on Graviton and the design of an internally-developed ARM processor. I can see the side that you're saying it's great for the ecosystem, but I could also see the side that they just removed a potential customer by servicing themselves. How do you think about the balance between those 2 and your commitment to ThunderX2?

偉大的。我想，正如我的後續問題一樣，您在序言中的評論之一是關於 Graviton 和內部開發的 ARM 處理器的設計。我可以看到你所說的這對生態系統有好處的一面，但我也可以看到他們通過自我服務而刪除了潛在客戶的一面。您如何看待這兩者之間的平衡以及您對 ThunderX2 的承諾？

Sure. So let me answer it in 2 ways. The first is, as we were in the final stages of closing Cavium, there was announcements from one of the other large competitors that they were pulling back in their efforts. And what I'd say is in the short-term, that helped us because it helps solidify our design position in a number of ways, but also there was a lingering question -- there's been a lingering question, is Marvell going to be the only last-man-standing with respect to ARM servers. On the Graviton announcement, all I'll say is, I think we've had a view for some time that, that particular customer was going to do something on their own and therefore, that's never been a part of our SAM assumption. So from -- again, from our point of view, we're happy to see them -- had made progress, get an initial start, in terms of putting up their instance. And I meant what I said, I do think this is going to be good for the ecosystem. And when I look out to 2019, and in our next-generation chip, which is ThunderX3, which we'll be taping out sampling, I think we'll be very well-positioned as Marvell and its ARM to compete very effectively with the next generation processors from the usual suspects. So that's the continuum of how I see this market evolving.

當然。那麼讓我用兩種方式來回答這個問題。第一個是，當我們處於關閉 Cavium 的最後階段時，其他大型競爭對手之一宣布他們正在撤回他們的努力。我想說的是，從短期來看，這對我們有幫助，因為它有助於以多種方式鞏固我們的設計地位，但也有一個揮之不去的問題——有一個揮之不去的問題，Marvell 是否會成為對於 ARM 服務器而言，只有最後一個人。關於 Graviton 的公告，我想說的是，我認為一段時間以來我們一直認為，特定客戶將自己做一些事情，因此，這從來不是我們 SAM 假設的一部分。因此，再次從我們的角度來看，我們很高興看到他們在建立實例方面取得了進展，取得了初步的開始。我的意思是我所說的，我確實認為這對生態系統有利。當我展望 2019 年時，在我們的下一代芯片 ThunderX3 中，我們將對其進行流片，我認為我們將作為 Marvell 及其 ARM 處於非常有利的地位，能夠與下一代處理器來自通常的懷疑。這就是我對這個市場不斷發展的看法。

Our next question comes from the line of Vivek Arya from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Vivek Arya。

Matt, my first question, on storage. In the past, you had kind of sized storage growing at a low- single-digit kind of growth rate. Is that still a useful construct for fiscal '19? I know it's early days, but could you just help us right-size where the business can trend because I understand that there is probably some excess inventory and CPU shortages on the hard disk drive side, but are there issues on the SSD side or other areas? Just overall, how do you think about storage from a fiscal '19 perspective?

馬特，我的第一個問題是關於存儲的。過去，存儲規模以低個位數的增長率增長。對於 19 財年來說，這仍然是一個有用的結構嗎？我知道現在還為時過早，但您能否幫助我們調整業務趨勢的規模，因為我知道硬盤驅動器方面可能存在一些過剩庫存和 CPU 短缺，但 SSD 方面或其他方面是否存在問題地區？總體而言，從 19 財年的角度來看，您如何看待存儲？

Sure. So I think even with the weakness we see, if you look at our performance, storage has still hung in there pretty well, and I think it's probably flattish, if you look at the performance in '19. Looking forward into '20, certainly understanding there's going to be this inventory correction we have to work through with the growth drivers that we've highlighted, especially the traction we see and the continued growth in the enterprise and data center portion of our storage business, we think that as we get through the inventory correction, and we head back to a normal state, we'll continue to see growth in our storage segment.

當然。因此，我認為即使我們看到了弱點，如果你看看我們的表現，存儲仍然保持得很好，如果你看看 19 年的表現，我認為它可能持平。展望 20 世紀，當然要理解，我們必須解決庫存調整的問題，我們必須解決我們強調的增長驅動因素，特別是我們看到的牽引力以及我們存儲業務的企業和數據中心部分的持續增長，我們認為，當我們經歷庫存調整併回到正常狀態時，我們將繼續看到存儲領域的增長。

I see. And for my follow-up, how is all this noise around tariffs and the potential for them to go from 10% to 25%, or maybe they don't go to 25%. Every day that news changes. But do you see your customers behaving a certain way right then? What are they telling you? Are they taking some certain steps to kind of pull-in inventory? Any change in behavior that you are noticing from their side? Or anything else that you are noticing in terms of cancellations or other things in your business?

我懂了。對於我的後續行動，圍繞關稅的所有這些噪音以及關稅從 10% 升至 25% 的可能性如何，或者可能不會達到 25%。新聞每天都在變化。但是您是否看到您的客戶當時有某種行為方式？他們在告訴你什麼？他們是否正在採取某些措施來拉動庫存？您注意到他們的行為有什麼變化嗎？或者您在業務取消或其他事情方面注意到了什麼？

Sure. So yes. So first of all, you're right, the situation is noisy, and it's changing daily, it's been interesting preparing for this call, seeing what's happened between Sunday and today. So yes, a lot of noise. To kind of focus on your question, we certainly hear about this in the industry, about pull-ins in anticipation of the tariffs kicking in. I say, in our own experience, it's very limited in terms of what we can actually point to. And I'd say we saw this in China through distribution for some of our networking products. So you end up kind of going pretty specific in terms of where some of this may have occurred. But even when we look at it, it's speculation, quite frankly, because we don't go and have customers actively coming to us telling us, hey, we're planning on pulling in and here's what's happening. But we do hear about it, and the noisy environment certainly isn't helping the overall situation for us as well as our peers.

當然。所以是的。首先，你是對的，情況很吵鬧，而且每天都在變化，準備這次電話會議很有趣，看看周日到今天之間發生了什麼。所以是的，有很多噪音。為了集中討論你的問題，我們當然在行業中聽說過這種情況，即預期關稅生效而拉動的情況。我想說的是，根據我們自己的經驗，我們實際上可以指出的內容非常有限。我想說的是，我們通過我們的一些網絡產品的分銷在中國看到了這一點。因此，您最終會非常具體地了解其中某些情況可能發生的位置。但坦率地說，即使我們看到它，這也只是猜測，因為我們不會讓客戶主動來找我們告訴我們，嘿，我們正計劃加入，這就是正在發生的事情。但我們確實聽說過這種情況，而且嘈雜的環境肯定對我們和我們的同行的整體狀況沒有幫助。

Our next question comes from the line of Timothy Arcuri from UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的蒂莫西·阿庫裡 (Timothy Arcuri)。

Matt, I had a question on the networking business, you're not giving us connectivity, but it seems like the guidance assumes like something a little more than $200 million, for sort of the core Marvell business, which is up a good bit from sort of $150 million here a couple of quarters ago. Can you talk about that? Is that real demand? Or is that some of what you just talked about, some of the pull-forward with the tariffs? I'm just kind of wondering whether that's a reasonable baseline to sort of think of going forward?

馬特，我有一個關於網絡業務的問題，您沒有為我們提供連接，但似乎該指南假設 Marvell 核心業務的金額略高於 2 億美元，該業務比幾個季度前這裡的銷售額約為 1.5 億美元。你能談談嗎？這是真正的需求嗎？或者這是您剛才談到的一些內容，一些關稅的提前？我只是想知道這是否是考慮未來的合理基準？

Tim, this is Jean. I'll give you some color about the Wi-Fi business. It becomes really below 10% of overall Marvell's business now. As Matt mentioned during his prepared remarks, this is the quarter we actually see the gaming product line completely going out. And so when you look at it year-over-year, the business has certainly declined significantly and kind of bottomed-up in Q4. But I would say, going forward, especially after we get out of Q4, next year, we actually see this revenue going to start to ramp-up and growing in fiscal '20. And I think that the run-rate that you quoted is actually lower than what our actual revenue number. We do see this is a business that continue to be going back -- now they're going back to the level for data gaming revenue, but certainly, all the other business momentum continue to be good. So we are actually expecting the growth of Wi-Fi business in fiscal '20.

蒂姆，這是吉恩。我將為您介紹一下 Wi-Fi 業務。現在它佔 Marvell 整體業務的比例確實低於 10%。正如馬特在他準備好的講話中提到的那樣，這是我們實際上看到遊戲產品線完全淘汰的季度。因此，當你逐年查看時，該業務肯定會大幅下降，並且在第四季度觸底反彈。但我想說，展望未來，特別是在明年第四季度結束後，我們實際上看到這一收入將在 20 財年開始增加和增長。我認為您引用的運行率實際上低於我們的實際收入數字。我們確實看到這是一項繼續回升的業務——現在他們正在恢復到數據遊戲收入的水平，但當然，所有其他業務勢頭仍然良好。因此，我們實際上預計 20 財年 Wi-Fi 業務將出現增長。

Okay. Okay, Jean. And then, as a follow-up, I know that you were talking about the Cavium business, the baseline being like $230 million, and the guidance is now $240 million. So it's a bit better. And the channel sounds like it's been pretty cleared out, is there some restocking happening there yet? I'm just sort of wondering what we should expect for the trajectory of the Cavium business now that the channel is basically cleared out?

好的。好吧，讓。然後，作為後續行動，我知道您正在談論 Cavium 業務，基線約為 2.3 億美元，現在的指導值為 2.4 億美元。所以好一點。而且頻道聽起來已經被清空了，那裡還有補貨嗎？我只是想知道，既然渠道已經基本清理完畢，我們應該對 Cavium 業務的發展軌蹟有何期待？

Sure yes. So you're right to point it out. We're actually very pleased with how Cavium's performing. It came in ahead of plan for Q3. We did get lean. In the last call, we said, $230 million, and now, we're projecting it to be $240 million. So both of those were very positive. And that's really due to growth in the OEM business. All the channels and stuff is clean. Channel inventory is clean, our DSOs. Everything is -- linearity -- all that's very good. So this is really a resumption of growth in that business, and it's performing well, but the -- just to be clear, the growth quarter-to-quarter as well as the increase over what we had indicated before was really the OEM customer base coming back, primarily in the OCTEON and Fusion product lines.

當然可以。所以你指出這一點是對的。事實上，我們對 Cavium 的表現非常滿意。它提前於第三季度的計劃。我們確實瘦了。在上次電話會議中，我們說是 2.3 億美元，現在我們預計為 2.4 億美元。所以這兩者都是非常積極的。這實際上是由於 OEM 業務的增長。所有的渠道和東西都是乾淨的。我們的 DSO 渠道庫存很乾淨。一切都是線性的，這一切都非常好。因此，這確實是該業務的增長恢復，並且表現良好，但是需要明確的是，季度環比的增長以及我們之前指出的增長實際上是 OEM 客戶群回歸，主要是在 OCTEON 和 Fusion 產品線中。

Our next question comes from the line of Blayne Curtis from Barclays.

我們的下一個問題來自巴克萊銀行的 Blayne Curtis。

Just wanted to follow up on the SSD business. In the October quarter, enterprise data center was growing nicely year-over-year. Client was down a little. I'm just kind of curious on your outlook into January, the whole segment, it sounds like it's down a bit, can you just give us some color between those 2 segments?

只是想跟進SSD業務。在十月季度，企業數據中心同比增長良好。客戶情緒有些低落。我只是對你對一月份整個部分的展望感到好奇，聽起來好像有點下降，你能給我們一些關於這兩個部分之間的顏色嗎？

Yes. So Blayne, so -- sorry. So yes, so both -- the way to think of it is, if you look at the overall classic Marvell storage market, which is both our flash solutions products as well as our HDD controllers, that whole Controller business for us is down from Q3 to Q4. It's both HDD as well as flash, SSD, and it's broad-based across virtually every customer. In fact, when I was preparing for this week, took a look at all of the customers above $1 million a quarter, and every single one is down sequentially. So I characterize it as not related specifically to one or the other, but both are down in the fourth quarter.

是的。布萊恩，所以——抱歉。所以是的，所以兩者 - 思考的方式是，如果你看看整個經典 Marvell 存儲市場，既包括我們的閃存解決方案產品，也包括我們的 HDD 控制器，我們的整個控制器業務比第三季度有所下降到 Q4。它既包括 HDD，也包括閃存、SSD，並且廣泛應用於幾乎所有客戶。事實上，當我準備本週的時候，查看了所有每季度超過 100 萬美元的客戶，每個客戶都在連續下降。因此，我將其描述為與其中之一沒有具體關係，但兩者都在第四季度下降。

Yes. I think it's the inventory adjustment, right? We're really looking at the storage segment, especially at the Controller side, we see the inventory adjustment. It would take a few quarters, like Matt said earlier.

是的。我覺得是庫存調整吧？我們確實在關注存儲領域，特別是在控制器方面，我們看到了庫存調整。正如馬特早些時候所說，這需要幾個季度的時間。

And then, maybe, actually, the kind of some question when you look at the HDD business. This is a business that has had cycles, if you look back over history and including your end-customers are struggling. I'm just kind of curious your perspective of inventory of controllers. I mean, look at your guidance for January, is that just reflective of what the end-customer is doing? Or are you working down some inventory controllers as well?

然後，實際上，當你審視硬盤業務時，也許會遇到這樣的問題。這是一個有周期的業務，如果你回顧歷史，包括你的最終客戶都在苦苦掙扎。我只是有點好奇你對控制器庫存的看法。我的意思是，看看你們一月份的指導，這是否反映了最終客戶在做什麼？或者您也在處理一些庫存控制器嗎？

Yes. Again, just -- yes, sorry, Blayne, just to be clear, the last answer I gave on, which you asked on SSD, I'm really answering for both together. And the reason is because, one, when we look at this business, what's become apparent over the last couple of years, quite frankly, is that the -- when we break out our business, looking at it by market is much more helpful. So when we talk about our growth drivers, we're talking about where our investments are, that whole commentary, we've been pretty consistent. We actually give a lot of data at our Investor Day around the enterprise and data center segment. When you bring it back to inventory, as I mentioned, we see inventory issues, both on the SSD side as well as the HDD side, both sides, from a storage perspective, have inventory, are going to be down in Q4, and both are going to take some quarters to rebalance.

是的。再說一次，只是 - 是的，抱歉，Blayne，我要澄清的是，我給出的最後一個答案，即您在 SSD 上提出的問題，我實際上是同時回答這兩個問題。原因是，第一，當我們審視這項業務時，坦率地說，過去幾年中顯而易見的是，當我們分解我們的業務時，按市場來看待它會更有幫助。因此，當我們談論我們的增長動力時，我們談論的是我們的投資在哪裡，整個評論我們一直非常一致。實際上，我們在投資者日上提供了有關企業和數據中心領域的大量數據。當你把它帶回庫存時，正如我提到的，我們看到庫存問題，無論是 SSD 方面還是 HDD 方面，從存儲的角度來看，雙方都有庫存，在第四季度都會下降，而且兩者都存在。需要幾個季度才能重新平衡。

Our next question comes from the line of Mark Delaney from Goldman Sachs.

我們的下一個問題來自高盛的馬克·德萊尼。

Question on the gross margin guidance for next quarter, which is coming up pretty nicely, given the lower revenue. Can you give us a sense to what extent that's starting to benefit from COG synergies related to Cavium? Or is it more about mix? And Jean, maybe you can remind us of the $50 million of annualized COG synergies that you're expecting to realize? What sort of cadence should we have in mind per that issue?

關於下季度毛利率指引的問題，考慮到收入較低，該指引的進展相當不錯。您能否讓我們了解一下，該公司在多大程度上開始從與 Cavium 相關的 COG 協同效應中受益？還是更注重混合？Jean，也許您可以提醒我們您期望實現 5000 萬美元的年度 COG 協同效應？對於這個問題，我們應該考慮什麼樣的節奏？

Yes. Yes. We are really pleased with our guidance, over 65% gross margin. It actually -- it has now included the $50 million cost of sales synergies that we outlined during our last earnings call. So there are a few key drivers I want to talk about. The first one is the mix of Cavium product, which when we include the Cavium as the combined company, the mix improvement, certainly, coming from the Cavium product side. Secondly, we actually talked about here before is when you look at the Marvell's networking product, when we release a new product and ramp a new product into production, those product lines, actually, have higher growth margins. So Matt mentioned our networking businesses Wave-2, Fi, have been growing significantly. So we are benefiting from that mix change too is the networking product ramping up. Going forward, while our new product continue to ramp, we'll continue to see that benefit. And the third, of course, is operational excellence and efficiency. Our operational team continue to drive the supply chain efficiency and improve overall cost of sales. So this is really 65%. It's a starting point for the synergy team. So going into fiscal '20, Matt mentioned that when we achieve the $50 million cost of sales synergy, we are going to continue to expand our growth margin.

是的。是的。我們對我們的指導非常滿意，毛利率超過 65%。事實上，它現在已經包括我們在上次財報電話會議中概述的 5000 萬美元的銷售協同成本。所以我想談談幾個關鍵驅動因素。第一個是 Cavium 產品的組合，當我們將 Cavium 作為合併後的公司時，組合的改進當然來自 Cavium 產品方面。其次，我們之前實際上談到的是，當你看Marvell的網絡產品時，當我們發布新產品並將新產品投入生產時，這些產品線實際上具有更高的增長率。馬特提到我們的網絡業務 Wave-2、Fi 一直在顯著增長。因此，我們也從這種組合變化中受益，即網絡產品的不斷增加。展望未來，當我們的新產品繼續增加時，我們將繼續看到這種好處。第三，當然是卓越運營和效率。我們的運營團隊不斷提高供應鏈效率並提高總體銷售成本。所以這實際上是 65%。這是協同團隊的起點。因此，進入 20 財年，馬特提到，當我們實現 5000 萬美元的銷售協同成本時，我們將繼續擴大我們的增長率。

Yes. And I'll just add, I think, as Jean said, I think this is a very powerful setup for us for fiscal '20. The fact that we're guiding 65% gross margins on the level of revenue that we're talking about, I think the mix improvements we've made and the new product progress we've made have been very good in terms of profitability. And I would note, I think, this is something like the 10th quarter in a row, where, sequentially, we've managed to increase our gross margins a little bit each quarter for the last couple of years. And we see that continuing into fiscal '20 on the back of higher revenue, improved product mix, and our COG synergies, which have yet to flow through the income statement. So we're very optimistic on this for next year.

是的。我想補充一點，正如吉恩所說，我認為這對我們 20 財年來說是一個非常強大的安排。事實上，我們在我們談論的收入水平上指導了 65% 的毛利率，我認為我們所做的組合改進和新產品的進展在盈利能力方面非常好。我想指出，我認為這就像連續第十個季度一樣，在過去的幾年裡，我們每個季度的毛利率都取得了一點點的增長。我們認為，在收入增加、產品組合改善以及我們的 COG 協同效應的支持下，這種情況將持續到 20 財年，而這些都尚未反映在損益表中。因此，我們對明年的情況非常樂觀。

That's very helpful. My follow-up is on the broader topic still of margins and synergies. And Jean, you mentioned some reduction in how much OpEx you expect the company to be spending next year compared to your prior view. Do I understand, is that just overall tight management of expenses, given some of those inventory adjustments that you talked about? Or is there any change in how much synergies the company thinks it can achieve from the Cavium acquisition?

這非常有幫助。我的後續行動是關於更廣泛的主題，即利潤和協同效應。Jean，您提到與您之前的觀點相比，您預計公司明年的運營支出會有所減少。我是否理解，考慮到您談到的一些庫存調整，這是否只是總體上嚴格的費用管理？或者公司認為收購 Cavium 可以實現多少協同效應有任何變化嗎？

Yes. You're right. We raised our synergy to $200 million during our last earnings call. That's very well defined. Our team is executing ahead of achieving our $200 million synergy plan, especially on the operating expense side we said at the midpoint of guidance, so for Q4, we are achieving $120 million of the $150 million synergy. We still have $30 million to go, which we'll achieve in the course of fiscal '20. So the rest of the operating expense reduction is really because our team is doing a great job, really applying this planned resource allocation project to a much larger scale operations. So that's how we achieve the better operating spend.

是的。你說得對。在上次財報電話會議上，我們將協同效應提高到了 2 億美元。這是非常明確的。我們的團隊正在實現 2 億美元的協同效應計劃之前執行，特別是在我們在指導中點所說的運營費用方面，因此在第四季度，我們將實現 1.5 億美元協同效應中的 1.2 億美元。我們還需要 3000 萬美元，我們將在 20 財年實現這一目標。因此，其餘的運營費用減少實際上是因為我們的團隊做得很好，真正將這個計劃的資源分配項目應用於更大規模的運營。這就是我們實現更好運營支出的方法。

Our next question comes from the line of Harlan Sur from JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Within the networking business, the enterprise and campus Ethernet, switching in Fi, clearly, 2018, we saw a strong upgrade cycle. How was the team thinking about the momentum of that upgrade cycle heading into calendar 2019? What we're hearing is that we're still early days in the upgrade cycle, given sort of the legacy infrastructure that hasn't been upgraded in a while. And also these customers also kind of solidified their plans in terms of what's going to remain on-prem versus what's going off-prem. But wanted to get your views.

在網絡業務、企業和園區以太網、Fi 交換中，2018 年我們顯然看到了強勁的升級週期。團隊如何看待 2019 年升級週期的勢頭？我們聽到的是，鑑於一些遺留基礎設施已經有一段時間沒有升級了，我們仍處於升級週期的早期階段。此外，這些客戶還鞏固了他們的計劃，即哪些內容將保留在本地，哪些內容將離開本地。但想听聽您的意見。

Yes. Our view is very consistent with that. We believe that, that cycle will continue into calendar '19. It's been a growth driver for us over the last 12 months, we can expect that to continue. So that's a good market trend. And I would say, on top of that, layering in our new product success will further help accelerate our growth, our continued growth, in our wired networking segment, which is, as you mentioned, our Ethernet switches and Fi products, all of which are extremely competitive and are doing very well in the market.

是的。我們的觀點與此非常一致。我們相信，這個週期將持續到 19 年日曆。在過去 12 個月裡，它一直是我們的增長動力，我們預計這種情況將會持續下去。所以這是一個很好的市場趨勢。我想說的是，最重要的是，我們新產品的成功將進一步有助於加速我們的增長，我們在有線網絡領域的持續增長，正如您提到的，我們的以太網交換機和 Fi 產品，所有這些極具競爭力，並且在市場上表現出色。

Great. And then, looking at the better Cavium results in October, and the stronger sequential growth from Cavium in Q4, it sort of implies that the core Marvell business is down about $65 million sequentially. Looks like $40 million of that is due to the storage weakness. Where is the other $20 million, $25 million of weakness coming from?

偉大的。然後，看看 Cavium 10 月份更好的業績，以及 Cavium 第四季度強勁的環比增長，這在某種程度上意味著 Marvell 核心業務環比下降了約 6500 萬美元。看起來其中 4000 萬美元是由於存儲缺陷造成的。另外 2000 萬美元、2500 萬美元的疲軟從何而來？

Harlan, this is Jean. So your math is right, the rest of it is coming from other product line, it's declining. And also a little bit of Wi-Fi, because as we said, we don't have the gaming product anymore, and so seasonality really impacts that business too.

哈倫，這是吉恩。所以你的數學是正確的，其餘的來自其他產品線，它正在下降。還有一點 Wi-Fi，因為正如我們所說，我們不再擁有遊戲產品，因此季節性也確實影響了該業務。

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

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

Just wanted to follow up on the storage business. Sounds like there are lots of moving parts, some hit the clients, some hit enterprise data center. Just wondering, do you see sort of both segments down for a couple of quarters? Do you expect one to recover before the other? And then, I've got a follow-up on the networking business.

只是想跟進存儲業務。聽起來有很多移動部件，有些影響到客戶，有些影響到企業數據中心。只是想知道，您是否認為這兩個細分市場都會下降幾個季度？您希望其中一個先於另一個康復嗎？然後，我對網絡業務進行了跟進。

Quinn, just want to clarify, right? And so the enterprise and the data center of our storage controller business, actually, have been growing year-over-year, and continue even in Q4, it's going to grow. So really, the decline of guidance into the Q4, it's more related to other segments of the business, and I think that's one thing to clarify, right, is, I think it's an inventory adjustment. We are going through data overall storage controller, both HDD and the flash side. We're trying to manage the high winds for next 1 or 2 quarters.

奎因，只是想澄清一下，對吧？因此，我們的存儲控制器業務的企業和數據中心實際上一直在逐年增長，甚至在第四季度也會繼續增長。因此，實際上，第四季度指導意見的下降，與業務的其他部門更多相關，我認為這是需要澄清的一件事，對吧，我認為這是庫存調整。我們正在研究數據整體存儲控制器，包括硬盤和閃存端。我們正在努力控制未來一兩個季度的強風。

Sorry, Jean, and that's been mostly on the client side? The enterprise data center will continue to linger on?

抱歉，Jean，這主要是在客戶端？企業數據中心還會繼續苟延殘喘嗎？

Yes. Enterprise data center actually are growing year-over-year, so the decline, if you think about it, is really largely on the other end, the client side.

是的。企業數據中心實際上在逐年增長，所以如果你仔細想想，下降實際上主要是在另一端，即客戶端。

Got it. Got it. Great. And then, just going through Harlan's comment there on the networking business, with Cavium business up to $240 million. Does the core networking business, the core Marvell networking business, actually decline in the January quarter? Is that stable?

知道了。知道了。偉大的。然後，只要瀏覽一下 Harlan 對網絡業務的評論，Cavium 的業務就高達 2.4 億美元。核心網絡業務、核心 Marvell 網絡業務在一月份季度是否真的出現下滑？那穩定嗎？

So Marvell networking business, if you think about, Matt talk about it, both the switch and the Fi, they are actually growing year-over-year, double-digit at the end. I think Wi-Fi is the major seasonally down quarter and without a gaming Wi-Fi revenue, that certainly impacts the business on that side.

Marvell 網絡業務，如果你想想，Matt 談到的，無論是交換機還是 Fi，它們實際上都在逐年增長，最終達到兩位數。我認為 Wi-Fi 是主要的季節性下滑季度，如果沒有遊戲 Wi-Fi 收入，這肯定會影響這方面的業務。

Our next question comes from the line of Craig Ellis from B. Riley FBR.

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

I'll ask a question about use-of-cash since the cash generation performance in the business was so strong and with good margins in the outlook. So it was pretty balanced in the quarter, with good share buyback and good debt-reduction pacing. Is that a proxy for what we should expect, both in the fiscal fourth quarter as we look into fiscal '20? Or with the stock at these prices, Matt, and I think relative valuations to the S&P 500 that are at 10-year lows, which should be more biased to tick it up on the share buyback side?

我會問一個關於現金使用的問題，因為該業務的現金生成表現非常強勁，並且前景利潤率很高。因此，本季度的情況相當平衡，股票回購和債務削減步伐良好。這是我們在展望 20 財年第四財季時應該預期的指標嗎？或者，馬特和我認為，在股價處於這些價格的情況下，標準普爾 500 指數的相對估值處於 10 年來的低點，這應該更傾向於在股票回購方面提高股價？

Yes. So I think as you can see, right, we generated very strong cash flow in Q3, we're really pleased with that. Going forward, we do think, with our business model, we'll continue to generate a strong cash flow. We have talked about that we plan to pay down debt by close to $100 million each quarter, to get to our target leverage ratio. I think because of how much cash we generate, you can see we can certainly have the strong flexibility to do a buyback. We certainly will try to balance both different quarter, it could be different, but that's the flexibility we have going forward.

是的。所以我認為正如你所看到的，我們在第三季度產生了非常強勁的現金流，我們對此非常滿意。展望未來，我們確實認為，通過我們的商業模式，我們將繼續產生強勁的現金流。我們已經談到，我們計劃每個季度償還近 1 億美元的債務，以達到我們的目標槓桿率。我認為，由於我們產生了多少現金，你可以看到我們當然可以擁有強大的靈活性來進行回購。我們當然會努力平衡兩個不同的季度，可能會有所不同，但這就是我們未來的靈活性。

Yes. And Craig, I would just add, I think when we -- we're certainly very mindful of our valuation relative to those other metrics, as you mentioned. We are very bullish on our prospects, and given the cash flow generation of this business, clearly, we'll be buying back stock as appropriate. I think we're going to do our debt paydown, as Jean mentioned, and we're going to be mindful of that. But there's an opportunity here, and we're going to continue just to take advantage of the strong cash flow of the business.

是的。克雷格，我想補充一點，我認為當我們——正如您提到的那樣，我們當然非常注意相對於其他指標的估值。我們非常看好我們的前景，考慮到這項業務產生的現金流，顯然我們將酌情回購股票。我認為我們將償還債務，正如吉恩提到的，我們會注意到這一點。但這裡有一個機會，我們將繼續利用業務強勁的現金流。

That's helpful. And then, the follow-up, Matt, is to you. You provided us with some very helpful color on the opportunity in base station, both from a product standpoint and the way that can evolve from a customer standpoint. But at Analyst Day, you and Jean identified 2 other upside growth drivers. Are you starting to get visibility that data center, I think, it was auto Ethernet, can come into view in fiscal '20? Or are those other 2 drivers really longer-term, with base station really being the principal driver of those 3 upside drivers for next year?

這很有幫助。然後，馬特，後續行動是給你的。您為我們提供了一些關於基站機會的非常有用的信息，無論是從產品的角度還是從客戶的角度發展的方式。但在分析師日，您和 Jean 發現了另外兩個上行增長動力。您是否開始意識到數據中心（我認為是汽車以太網）可以在 20 財年出現？或者其他 2 個驅動因素真的是長期驅動因素嗎？基站真的是明年這 3 個上行驅動因素的主要驅動因素嗎？

Yes. So from a total dollar amount, the 5G will clearly be, head and shoulders, the largest of those upside drivers. Both of those 3 initiatives as well as, actually, for the whole company. That being said, we're happy about all of them. The other one you mentioned was automotive Ethernet. Now that's coming off of a smaller base, but off a small base, that business has been growing quite rapidly, and we expect it to grow again significantly in fiscal '20. But again, that's a much smaller base we're talking about, but design win pipeline is very strong there, our new products, which has been in leadership positions, both on our gigabit Ethernet Fi, as well as our secure switch, have a significant design win pipeline, and those are certainly materializing to wins, which would translate into revenue ramps. And then, the third one was really around ARM server, if I recall, is the third upside lever. And as I mentioned in my prepared remarks, I think our showing at Supercomputing '18 was very strong in terms of ThunderX2 performing well on all benchmarks, both for cloud and for high-performance computing applications, and that will also generate year-over-year revenue growth and contribution. It'll be part of why we're going to grow in fiscal '20 as well. But I'd say the 5G, by far, is the one where we see the most upside potential.

是的。因此，從總金額來看，5G 顯然將是最大的上行驅動因素。這三項舉措實際上都是針對整個公司的。話雖這麼說，我們對他們所有人都很高興。您提到的另一個是汽車以太網。現在，該業務的基數較小，但業務增長相當迅速，我們預計其將在 20 財年再次大幅增長。但同樣，我們談論的基礎要小得多，但那裡的設計贏得管道非常強大，我們的新產品在我們的千兆位以太網 Fi 以及我們的安全交換機上一直處於領先地位，具有重要的設計勝利管道，這些肯定會實現勝利，這將轉化為收入的增長。然後，第三個實際上是圍繞 ARM 服務器的，如果我沒記錯的話，這是第三個上行槓桿。正如我在準備好的發言中提到的那樣，我認為我們在 Supercomputing '18 上的表現非常強勁，因為 ThunderX2 在所有基準測試中都表現良好，無論是針對雲還是高性能計算應用程序，這也將產生逐年-年收入增長和貢獻。這也是我們在 20 財年實現增長的部分原因。但我想說，到目前為止，5G 是我們認為最具上升潛力的領域。

Our next question comes from the line of C.J. Muse from Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I guess, quick one on storage, and specifically SSDs. Can you walk through your thinking for calendar '19? Obviously, there's an inventory correction going on, but bit growth still should be at least north of 35%, and you've got, hopefully, demand elasticity. So I would love to hear your thoughts on how you see that playing out for that part of your business, in calendar '19?

我想，快速介紹一下存儲，特別是 SSD。您能談談您對 19 年日曆的想法嗎？顯然，庫存修正正在進行，但位增長仍應至少超過 35%，並且希望您擁有需求彈性。所以我很想听聽您對 19 年日曆中這部分業務的看法如何？

Sure. Yes. So I think, again, the way to think about our growth coming out of this cycle next year in storage and controllers, is really -- I'd focus you more around the end- markets and the end-applications that we're going to grow in, which are, by the way, agnostic to whether it's hot storage, or it's cold storage, or it's flash, or its HDDs, and that is enterprise and data center, it's been growing very well for us. We believe it's going to grow next year. We believe that once we're through this cycle, that will continue to drive our growth. We've been less focused --, and we talked about this at Analyst Day -- on the client side, and in particular, in the PC expose segments. That one, we've been -- we made our pivot to the cloud probably 2 years ago in terms of our R&D investments. So I think as we go forward, I think that's the more pertinent way to look at our business, because that's really where profitability is driven, that's where R&D is focused, and that's where the growth is coming from and the future of our overall storage control of the business.

當然。是的。因此，我再次認為，考慮明年在存儲和控制器領域擺脫這一周期的增長的方式實際上是——我會更多地關注我們將要發展的終端市場和終端應用程序順便說一句，無論是熱存儲、冷存儲、閃存還是 HDD，即企業和數據中心，它對我們來說都增長得非常好。我們相信明年它將會增長。我們相信，一旦經歷了這個週期，這將繼續推動我們的增長。我們不太關注客戶端，特別是 PC 暴露部分，我們在分析師日討論了這一點。就我們的研發投資而言，我們可能在兩年前就轉向了雲。因此，我認為，隨著我們前進，我認為這是看待我們業務的更相關的方式，因為這確實是盈利能力的驅動力，這就是研發的重點，這就是增長的來源和我們整體存儲的未來對業務的控制。

Very helpful. And if I could just follow up on that same theme, specific to NVMe enterprise controllers, can you kind of walk through where you are in terms of customer design wins, as well as, what revenue opportunities could look like from just licensing IP, et cetera?

很有幫助。如果我可以跟進同一主題（特定於 NVMe 企業控制器），您能否介紹一下您在客戶設計方面的進展，以及僅通過許可 IP 等獲得的收入機會是什麼樣的？諸如此類？

Okay. Yes. So let me take the second one first. So we don't have any plans to do any licensing of our IP. Our portfolio is rich, in particular, as you mentioned in NVMe. And I think NVMe and then NVMe over Fabrics, as a technology, is very important to our company, both because we own it at the drive level as well as now, at the Controller level upstream. And I think what I'd say there is that will be an important technology for us across a wide number of applications in the company, but I don't think I'm going to go one click lower into the design wins for our specific NVMe products for the enterprise, that's probably a bit too detailed for here, but we are certainly participating in that market. But I'd just say, NVMe, overall, as you saw at our Analyst Day, we talked about our new products, which are in the form of our aggregators and our accelerators, and those kind of products and those solutions, I think, coupled with our SSD controllers, it provides a total solution for data center and emerging enterprise applications.

好的。是的。那麼我先來說第二個。所以我們沒有任何計劃對我們的知識產權進行任何許可。正如您在 NVMe 中提到的，我們的產品組合非常豐富。我認為 NVMe 以及 NVMe over Fabrics 作為一項技術，對我們公司非常重要，因為我們在驅動器級別以及現在在上游控制器級別都擁有它。我認為我想說的是，這對於我們公司的眾多應用程序來說將是一項重要的技術，但我不認為我會為了我們的特定產品而一鍵降低設計成功率針對企業的 NVMe 產品，在這裡可能有點過於詳細，但我們確實參與了這個市場。但我只想說，NVMe，總的來說，正如您在分析師日看到的那樣，我們討論了我們的新產品，這些產品以聚合器和加速器的形式出現，我認為這些產品和解決方案，與我們的 SSD 控制器相結合，它為數據中心和新興企業應用提供了整體解決方案。

Our next question comes from the line of Gary Mobley from Benchmark.

我們的下一個問題來自 Benchmark 的 Gary Mobley。

Matt, I wanted to start with a technical question covering your largest storage customer. I don't think it's been a secret that your largest storage customer has been a big supporter of RISC-V, and as evident in their press release today, it's evident that they're developing their own SSD controller for enterprise and data center applications. And so with that specific customer in mind, I'm curious to hear your perspective on market share, and then as well, overall market share for SSD controllers and captive versus merchant. And Jean, as a follow-up, a housekeeping question, it looks like your share count came in below what I was expecting just based on the transaction value of Cavium. As a baseline, could you give us what the share count assumption is for the fourth quarter?

馬特，我想從一個涉及您最大的存儲客戶的技術問題開始。我認為你們最大的存儲客戶一直是 RISC-V 的大力支持者，這已經不是什麼秘密了，從他們今天的新聞稿中可以明顯看出，他們正在為企業和數據中心應用程序開發自己的 SSD 控制器。因此，考慮到該特定客戶，我很想听聽您對市場份額的看法，以及 SSD 控制器的整體市場份額以及自營市場與商家市場份額的看法。Jean，作為一個後續問題，一個內務問題，看起來你的股票數量低於我基於 Cavium 交易價值的預期。作為基準，您能否告訴我們第四季度的股票數量假設是多少？

Okay. So I'll take the first 2, and then I'll let Jean cover the third. So with respect to RISC-V, this is something that we're involved in also, we're a member. We're actively engaged. And actually, looking at a number of different processor architectures, obviously, we have most of our products from the Marvell side based on ARM from the Cavium side. They've made the miss to ARM transition. So we're very open in terms of processor architecture out there. And we've had very good discussions and we're very closely aligned with WD, as you can imagine, because they're our largest customer. So I think we understand, and I think they've been very vocal, probably one of the most vocal OEMs, with respect to implementing RISC-V in their own products, some of which they've announced in some of -- so I think we're aware of that. And that ties in to your second question, which is the verticalization question in captive versus merchant in that market. And what I'd say is similar to what I said at the Analyst Day, which is this trend has been happening for some time. Some of those products are already on the market today, but the number of SKUs that are out there, the number of applications that are now present for us in the SSD market, in the flash solutions market across a wide range of not only the guys that make the SSDs, but also the new emerging applications in terms of the do-it-yourself customer base in the data center and others, presents -- I think, that's really where the trend is going and where we see the most traction. But we'll continue to participate in both. I think both are going to be important parts of our business, but no question on the verticalization, especially at the lower end, and in the PC market, I think it's made sense for these companies to make their own solutions for cost reasons, and that probably will continue. The DIY model though, I think, is one where it really plays to our strengths, and that is because we have experience and knowledge of everyone else's NAND. We're able to go in and actually do almost an SoC, if you will, for different cloud customers, enterprise customers, and then there's even some new emerging applications for the future, where we can enable our customers using our technology to take advantage of multiple NAND sources out there, and get their own IP implemented in our products, and get their own design that they need. And I'll turn to Jean on the share count.

好的。所以我會先講前兩個，然後讓吉恩講第三個。因此，對於 RISC-V，我們也參與其中，我們是成員。我們正在積極參與。事實上，看看許多不同的處理器架構，顯然，我們的大部分產品都來自 Marvell 方面，基於 Cavium 方面的 ARM。他們錯過了向 ARM 的過渡。因此，我們在處理器架構方面非常開放。我們進行了非常好的討論，正如您可以想像的那樣，我們與 WD 的關係非常密切，因為他們是我們最大的客戶。所以我認為我們理解，而且我認為他們在自己的產品中實施 RISC-V 方面一直非常直言不諱，可能是最直言不諱的 OEM 之一，其中一些產品他們已經在一些產品中宣布了——所以我我想我們已經意識到了這一點。這與你的第二個問題有關，即該市場中自營企業與商人的垂直化問題。我想說的與我在分析師日所說的類似，即這種趨勢已經發生了一段時間了。其中一些產品現已上市，但現有的 SKU 數量、SSD 市場以及閃存解決方案市場中的應用程序數量，不僅包括這些產品製造 SSD 的技術，以及數據中心和其他領域的 DIY 客戶群方面的新興應用——我認為，這確實是趨勢的發展方向，也是我們看到的最具吸引力的方向。但我們將繼續參與這兩個領域。我認為兩者都將成為我們業務的重要組成部分，但毫無疑問的是垂直化，特別是在低端市場，在個人電腦市場，我認為這些公司出於成本原因制定自己的解決方案是有意義的，並且這可能會持續下去。不過，我認為 DIY 模式是真正發揮我們優勢的一種模式，這是因為我們擁有其他人 NAND 的經驗和知識。如果你願意的話，我們能夠為不同的雲客戶、企業客戶，實際上做一個 SoC，甚至還有一些未來新興的應用程序，我們可以讓我們的客戶使用我們的技術來利用多個 NAND 來源，並在我們的產品中實施他們自己的 IP，並獲得他們需要的自己的設計。我將向吉恩詢問股票數量。

Share count. On share count, right? In Q3, we did buy back some of our shares, probably close to 3 million shares. So at Q3, the share count, the non-GAAP share count, is about 666 million shares. I think for Q4, you can model similar, maybe, one or 2 million shares more. That's what you can model for Q4.

分享計數。按份額計算，對嗎？在第三季度，我們確實回購了一些股票，可能接近 300 萬股。因此，在第三季度，股票數量（非 GAAP 股票數量）約為 6.66 億股。我認為對於第四季度，您可以建立類似的模型，也許可以多一到兩百萬股。這就是您可以為第四季度建模的內容。

Our next question comes from the line of Kevin Cassidy from Stifel.

我們的下一個問題來自 Stifel 的 Kevin Cassidy。

This is Nick Doyle on for Kevin Cassidy. So following up on the 5G. How should we be thinking of the timing for revenue ramping on 5G deployment? And I have a follow-up.

我是凱文·卡西迪的尼克·道爾。所以跟進5G。我們應該如何考慮 5G 部署帶來的收入增長時機？我有一個後續行動。

Sure. Best as we can tell, and again, this is a new technology transition, so this is always subject to change by some quarters, but best as we can tell, it's about a year from now, it's Q4 of calendar -- well, our Q4 fiscal, which is a year from now. That's when we would start seeing, I think, some of the ramp for our products.

當然。據我們所知，這是一次新技術轉型，所以這總是會在某些季度發生變化，但據我們所知，最好的情況是，從現在開始大約一年後，這是日曆的第四季度——好吧，我們的第四財季，即一年後。我認為，那時我們將開始看到我們產品的一些增長。

Okay. Great. And have you seen any slowing in revenue from China due to security concerns? Or even restrictions on buying products from any of their customers?

好的。偉大的。您是否發現由於安全問題而導致來自中國的收入放緩？或者甚至限制從任何客戶那裡購買產品？

No. We haven't seen that. We -- yes, we have Chinese customers, and we have not seen that.

不。我們還沒有看到這一點。我們——是的，我們有中國客戶，但我們還沒有看到這一點。

Our final question for today comes from the line of Christopher Rolland from Susquehanna.

我們今天的最後一個問題來自薩斯奎哈納的克里斯托弗·羅蘭。

I guess, Matt, now that we're a few quarters into Cavium, perhaps you can talk about the products that surprised you the most. What's been stronger-than-expected for you? And what's been weaker?

我想，Matt，現在我們已經進入 Cavium 幾個季度了，也許您可以談談最讓您驚訝的產品。什麼事情比你預期的要強？以及什麼是較弱的？

Sure. Yes. Chris, so great final question. So overall, we're very pleased with the set of technologies that we got. In fact, I think you nicknamed it in one of your reports some time ago as a roadmap in a box. And I think it was -- we were very fortunate to get such a diverse set of product lines and technologies from them. So I think, in general, the -- our feeling is from when we started the journey with them to now, the expectations have largely been met. I'd say that with 5G, I mean, if you go back to fall of 2017, okay, when we were announcing this, I think 5G, at that point, seemed like it was going to be sort of a 2021, 2022 type of thing. We hit Mobile World in February, and all of a sudden, everything changed. And since then, I think, directionally, we've seen those pull in. So I think the 5G opportunity on the basis of Fusion's success in 4G, and then, all the work -- the great work the team did to get the 5G technology ready, I think, that's been a nice upside surprise to us. I think the rest of it, whether it's OCTEON, which is sort of what we would call one of the franchised businesses of Cavium, it's doing extremely well. We see that as very complementary with our switches and our Fis when we go to market now, we're able to sell that as a total solution, team's doing a great job there. I'd say as we also integrated our ARMADA, our processor line into the OCTEON team, I think they've also done a great job of taking their STK and applying it to the ARMADA products. And in fact, we had some products in flight that were "ARMADA" that are going to be announced at OCTEON and they're going to be run like a Cavium product from Day 1. So lots of positive collaboration between the teams, the technologies are good. There's a whole laundry list of things that they have, and I probably won't go into every one in detail. But I'd say, in aggregate, we're very happy with what we got. And I think the fact that their revenue has come back, and it looks good for Q4, and we've got the outlook as we head into the second half of next year with some of the new ramps, we're very optimistic, and I think, again, the combination of the 2 companies, the ability to share the IP, the ability to sell the whole solution now with OCTEON, as an example, at the core, very positive on that outlook.

當然。是的。克里斯，最後一個問題非常好。總的來說，我們對我們獲得的這組技術非常滿意。事實上，我認為您不久前在一份報告中將其暱稱為“盒子裡的路線圖”。我認為我們非常幸運能夠從他們那裡獲得如此多樣化的產品線和技術。所以我認為，總的來說，我們的感覺是，從我們開始與他們合作到現在，我們的期望基本上得到了滿足。我想說的是，對於 5G，我的意思是，如果你回到 2017 年秋天，好吧，當我們宣布這一點時，我認為 5G 在那時似乎將是 2021 年、2022 年的類型的東西。我們在二月份推出了《Mobile World》，突然之間，一切都發生了變化。從那時起，我認為，從方向上來說，我們已經看到了這些因素的吸引。因此，我認為基於 Fusion 在 4G 領域成功的 5G 機會，以及團隊為 5G 技術做好準備所做的所有工作，我認為這對我們來說是一個很好的上行驚喜。我認為其餘的業務，無論是 OCTEON（我們稱之為 Cavium 的特許經營業務之一），都表現得非常好。我們認為，當我們現在進入市場時，它與我們的交換機和 Fis 非常互補，我們能夠將其作為整體解決方案進行銷售，團隊在那裡做得很好。我想說，由於我們還將 ARMADA、我們的處理器系列集成到 OCTEON 團隊中，我認為他們在採用 STK 並將其應用到 ARMADA 產品方面也做得很好。事實上，我們有一些即將在 OCTEON 上發布的“ARMADA”產品，從第一天起它們就會像 Cavium 產品一樣運行。團隊、技術之間有很多積極的合作很好。他們擁有一整套清單，我可能不會詳細介紹每一項。但我想說，總的來說，我們對我們所得到的感到非常滿意。我認為他們的收入已經回升，第四季度看起來不錯，而且隨著我們進入明年下半年，我們已經有了一些新的增長的前景，我們非常樂觀，並且我再次認為，兩家公司的結合、共享 IP 的能力、現在以 OCTEON 為核心銷售整個解決方案的能力，對這一前景非常積極。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Ashish, for any further remarks.

今天節目的問答環節到此結束。我想將程序交還給 Ashish，以供進一步評論。

Thank you, everyone, for joining us today. And we look forward to talking to you 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您交談。謝謝，再見。

Thank you, ladies and gentlemen, for your participation at today's conference. This does conclude the program. You may now disconnect. Good 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。您現在可以斷開連接。再會。