美光科技 (MU) 2017 Q1 法說會逐字稿

Good afternoon. My name is Lateef, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Micron Technology's first quarter 2017 financial release conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period.

午安.我叫拉蒂夫，今天我將擔任你們的會議主持人。在此，我謹代表美光科技公司歡迎各位參加2017年第一季財務業績發布電話會議。所有線路均已靜音，以防止任何背景噪音。發言結束後，將進行問答環節。

(Operator Instructions)

（操作說明）

Thank you. It is now my pleasure to turn the floor over to your host, Ivan Donaldson. Sir, you may begin your conference.

謝謝。現在我很高興把發言權交給你們的主持人伊凡唐納森。先生，您可以開始會議了。

Thank you, Lateef, and welcome to Micron Technology's first quarter 2017 financial conference call. On the call with me today are Mark Durcan, CEO and Director; and Ernie Maddock, Chief Financial Officer. This conference call, including audio and slides, is also being webcast from our Investor Relations website at investors.micron.com.

謝謝 Lateef，歡迎參加美光科技 2017 年第一季財務電話會議。今天和我一起通話的是執行長兼董事馬克·杜爾坎和財務長厄尼·馬多克。本次電話會議（包括音訊和幻燈片）也將在我們的投資者關係網站 investors.micron.com 上進行網路直播。

In addition, our website contains the earnings press release filed a short while ago and supplemental information including quarterly operational and financial metrics and guidance, GAAP to non-GAAP reconciliations, slides used during today's conference call, and a convertible debt and capped call dilution table. Today's call will be approximately 60 minutes in length. A webcast replay will be available on our website for one year.

此外，我們的網站還包含不久前發布的盈利新聞稿和補充信息，包括季度運營和財務指標及指導、GAAP 與非 GAAP 的調節表、今天電話會議中使用的幻燈片以及可轉換債券和上限期權稀釋表。今天的電話會議大約需要60分鐘。網路直播回放將在我們的網站上保留一年。

We encourage you to monitor our website at micron.com throughout the quarter for the most current information on the Company, including information on the various financial conferences that we will be attending and our 2017 analyst conference which will be held on Thursday, February 2. You can also follow us on Twitter @MicronTech.

我們鼓勵您在本季度密切關注我們的網站 micron.com，以獲取有關公司的最新信息，包括我們將參加的各種金融會議以及將於 2 月 2 日（星期四）舉行的 2017 年分析師會議的信息。您也可以在 Twitter 上關注我們 @MicronTech。

As a reminder, the matters we will be discussing today include forward-looking statements based on the environment as we currently see it. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today. We refer you to the documents the Company files with the SEC, specifically our most recent Form 10-Q and 10-K, for a complete discussion of these important factors and other risks that may affect our future results. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

再次提醒大家，我們今天討論的事項包括基於我們目前所見環境的前瞻性陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與今天所作的陳述有重大差異。有關這些重要因素以及可能影響我們未來業績的其他風險的完整討論，請參閱公司向美國證券交易委員會提交的文件，特別是我們最新的 10-Q 表格和 10-K 表格。儘管我們認為前瞻性聲明中反映的預期是合理的，但我們無法保證未來的結果、活動水準、績效或成就。

We are under no duty to update any of the forward-looking statements after today's date to conform these statements to actual results. I'll now turn the call over to Mark.

我們沒有義務在今天之後更新任何前瞻性聲明，以使這些聲明與實際結果相符。現在我將把電話交給馬克。

Thank you, Ivan. For fiscal Q1 2017, Micron posted total revenue of $3.97 billion with non-GAAP gross margin of 26% and net income of $335 million, or $0.32 per share. Revenue, gross margin, operating income, all exceeded our guidance. Operating cash flow was $1.1 billion.

謝謝你，伊凡。2017 財年第一季，美光科技總營收為 39.7 億美元，非 GAAP 毛利率為 26%，淨收入為 3.35 億美元，即每股 0.32 美元。營收、毛利率、營業收入均超乎預期。經營現金流為11億美元。

In the first quarter, we saw an acceleration of the positive market conditions that began this fall. For the industry, supply is slowing, demand is strong in a number of key segments, and inventory is at low levels. Prices have been strengthening on a like-for-like basis across all leading edge DRAM and NAND products and we see this trend continuing into the current quarter.

第一季度，我們看到了始於今年秋季的積極市場狀況加速發展。就整個產業而言，供應正在放緩，一些關鍵領域的需求強勁，庫存水準較低。所有領先的DRAM和NAND產品的價格都在同類產品的基礎上走強，我們預計這一趨勢將在本季度繼續下去。

To give you some perspective on pricing dynamics, after declining for roughly 18 months, PC DRAM ASPs are up 50% to 60% compared to the trough pricing, driven by an improvement in demand, historically low inventory levels and the impact of supply shifts to other segments. In contrast, all other DRAM segments declined substantially less over the same period and are recovering at a slower rate.

為了讓您更了解價格動態，在經歷了大約 18 個月的下跌之後，PC DRAM 的平均售價比低谷價格上漲了 50% 到 60%，這主要得益於需求的改善、歷史性的低庫存水準以及供應轉移到其他領域的影響。相較之下，同期所有其他 DRAM 細分市場的下滑幅度都小得多，而且復甦速度也較慢。

Given the duration of the broad supply/demand tightness in the market, we are currently seeing improvements in quarter-over-quarter pricing trends in these non-PC segments. Taking all these variables together, blended DRAM ASPs are essentially flat compared to the same period last year. With this in mind, and as we look at our current quarter, operational execution is driving DRAM sales up more than $1 billion year-over-year, while our cost of goods sold is up only about half this amount, driving substantial improvements in gross margins.

鑑於市場供需緊張的局面持續存在，我們目前看到這些非個人電腦領域的季度環比價格趨勢有所改善。綜合考慮所有這些因素，混合 DRAM 的平均售價與去年同期相比基本持平。考慮到這一點，當我們審視當前季度時，營運執行力推動 DRAM 銷售額同比增長超過 10 億美元，而我們的銷售成本僅增長了大約一半，從而推動了毛利率的大幅提高。

Product mix has a more significant impact on the NAND landscape where we are also experiencing like-for-like pricing increases. However, we are also shifting our product portfolio to 3D and TLC NAND which enables higher density and lower cost products that also have lower ASPs. Taken together, blended NAND ASPs are down approximately 10% year-over-year while gross margins are up meaningfully.

產品組合對 NAND 市場格局的影響更為顯著，我們也正經歷同類產品價格上漲的情況。然而，我們也正在將產品組合轉向 3D 和 TLC NAND，這使得產品密度更高、成本更低，平均售價也更低。綜合來看，混合 NAND 平均售價較去年同期下降約 10%，而毛利率則顯著上升。

Turning to the industry outlook, we currently expect 2017 DRAM bit supply growth in the 15% to 20% range. This is based on an assumption that suppliers won't add significant wafer capacity to the industry, but will continue to focus on process node migrations to enable cost reductions and natural supply growth. This compares to our long-term bit demand growth forecast of approximately 20% to 25%. We expect favorable supply and demand dynamics to persist in 2017.

展望產業前景，我們目前預計 2017 年 DRAM 位供應量成長將在 15% 至 20% 之間。這是基於這樣的假設：供應商不會向產業增加大量的晶圓產能，而是會繼續專注於製程節點遷移，以實現成本降低和自然供應成長。這與我們對比特需求長期成長約 20% 至 25% 的預測相比有所下降。我們預計2017年有利的供需動態將持續。

For NAND, we estimate 2017 industry bit growth in the high 30% to low 40% range which is in line with 2016. This compares to our long-term bit demand growth forecast of approximately 40% to 45%. 3D conversions continue to be a headwind to industry supply growth. This factor, along with strong demand for storage and mobile solutions, sets up for a well-balanced supply and demand dynamic in 2017.

對於 NAND，我們估計 2017 年產業比特成長率在 30% 到 40% 之間，與 2016 年的情況一致。這與我們對長期比特需求成長約 40% 至 45% 的預測相比有所下降。3D轉換持續對產業供應成長構成阻礙。這一因素，加上對儲存和行動解決方案的強勁需求，為 2017 年供需平衡的局面奠定了基礎。

I'll now provide a high level overview of each of our business units and Ernie will follow with more details on their specific financial performances. In the Compute and Networking business unit, we experienced revenue growth as a result of strengthening or strengthened demand. We executed well to our 20-nanometer shipment plan and achieved key qualifications of 64 gigabyte LRDIMMs at multiple server customers. We also continued our strong performance in the graphic segment where our GDDR5X technology leads competitors.

接下來我將概述我們各個業務部門的情況，Ernie 將隨後詳細介紹它們的具體財務表現。在運算和網路業務部門，由於需求增強，我們實現了收入成長。我們很好地執行了 20 奈米出貨計劃，並在多個伺服器客戶處實現了 64 GB LRDIMM 的關鍵認證。我們在圖形領域也持續保持強勁勢頭，我們的 GDDR5X 技術領先於競爭對手。

In our Mobile business unit, the completion of our customer qualifications drove substantial revenue and profit growth this quarter. As noted last quarter, we continue to see the Chinese market driving mobile growth and higher memory content per smartphone. We had strong growth in our LPDRAM and mobile NAND product lines and are focused on new qualification opportunities as we see the mobile market as one of the strongest growth drivers of our business.

在我們的行動業務部門，客戶資格認證的完成推動了本季營收和利潤的大幅成長。正如上個季度所指出的，我們繼續看到中國市場推動行動業務成長，並帶動智慧型手機內存容量的提高。我們的 LPDRAM 和行動 NAND 產品線實現了強勁成長，我們正專注於新的認證機會，因為我們認為行動市場是我們業務最強勁的成長驅動力之一。

Our Embedded business was driven by strong demand across a variety of segments. Our NAND-based MCPs continue in business and machine-to-machine communications modules and our strong portfolio also brought us significant share in several new home automation and action camera platforms this quarter. We expect our new application Optimize SD cards to drive market share gains within both the industrial and connected home segments.

我們的嵌入式業務得益於各細分市場的強勁需求。我們的基於 NAND 的 MCP 繼續應用於商業和機器對機器通訊模組，我們強大的產品組合也使我們在本季度在幾個新的家庭自動化和運動相機平台中獲得了相當大的份額。我們預計我們的新應用「優化 SD 卡」將在工業和智慧家庭領域都取得市場份額的成長。

Our Automotive business had another excellent quarter. We're securing an increasing number of automotive design wins on our leading edge, managed NAND and 20-nanometer DRAM products. We also see automotive demand for advanced memory technologies accelerating as more sophisticated ADAS systems come to market in the years ahead.

我們的汽車業務又迎來了一個出色的季度。我們憑藉領先的管理型 NAND 和 20 奈米 DRAM 產品，在汽車設計領域贏得了越來越多的訂單。我們也看到，隨著未來幾年更複雜的ADAS系統進入市場，汽車產業對先進儲存技術的需求也將加速成長。

Our Storage business unit continues to make progress shifting our portfolio to advanced 3D NAND technologies. First, the 1,100 client SSDs we announced last quarter completed qualifications and we commenced volume shipments with several major customers. This complements our crucial MX300 consumer drive which is currently shipping in high volumes. Additionally, we announced our cloud-based 5100 SATA SSD earlier this month offering industry leading performance and 8 terabyte capacities. All three of these SSDs are built with our TLC 3D NAND and illustrate our focused portfolio transition to this high capacity, high performance and cost effective technology.

我們的儲存業務部門不斷取得進展，將我們的產品組合轉向先進的 3D NAND 技術。首先，我們上季宣布的 1100 個客戶端 SSD 已完成認證，並已開始向幾家主要客戶大量出貨。這與我們目前大量出貨的關鍵消費級 MX300 硬碟相輔相成。此外，我們本月稍早發布了基於雲端的 5100 SATA SSD，提供業界領先的效能和 8 TB 的容量。這三款固態硬碟均採用我們的 TLC 3D NAND 快閃記憶體製成，體現了我們專注於向這種高容量、高效能和高性價比技術的產品組合轉型。

We continue to provide updates with respect to critical targets related to operational execution originally shared at our Analyst Day in August of 2015. Thus far, these milestones include bit crossover on 20-nanometer DRAM and 3D NAND, and the SSD product release road map have all been achieved on or ahead of schedule. Our two-year bit growth and cost per bit targets remain on track and we continue to be focused on delivering to our commitments.

我們將繼續提供有關營運執行的關鍵目標的最新信息，這些目標最初是在 2015 年 8 月的分析師日上分享的。到目前為止，這些里程碑包括 20 奈米 DRAM 和 3D NAND 的位元交叉，以及 SSD 產品發布路線圖都已按計劃或提前完成。我們兩年的比特成長和每比特成本目標仍然按計劃進行，我們將繼續專注於履行我們的承諾。

Our focus in DRAM this year is primarily related to the deployment of our 1X nanometer technology. We're targeting meaningful output on 1X by the latter part of FY17. We expect to generate approximately 20% to 25% cost per bit reductions in FY17. Our cash costs for bit declines will be well above this range.

今年我們在DRAM領域的重點主要與我們的1X奈米技術的部署有關。我們的目標是在 2017 財年下半年實現 1X 平台的實質產出。我們預計在 2017 財年實現每位元成本降低約 20% 至 25%。我們的鑽頭損耗現金成本將遠高於這個範圍。

For NAND, we will continue to focus on ramping our Gen 1 3D, as well as TLC. We have also commenced production on our second generation 64-layer 3D technology and we're targeting meaningful output by the latter part of FY17. The 3D and TLC ramps will deliver 20% to 25% cost per bit improvement in FY17. This cost per bit includes the impact of expanding our SSD, eMCP and managed NAND solutions which carry additional bill of materials and costs, but will also enable a richer ASP mix.

對於 NAND，我們將繼續專注於提高第一代 3D 快閃記憶體和 TLC 快閃記憶體的產能。我們也開始生產第二代 64 層 3D 技術，目標是在 2017 財年下半年實現有意義的產量。3D 和 TLC 斜坡將在 2017 財政年度實現每鑽頭成本降低 20% 至 25%。每位元成本包括擴展我們的 SSD、eMCP 和託管 NAND 解決方案的影響，這些解決方案會帶來額外的物料清單和成本，但同時也將實現更豐富的 ASP 組合。

Relative to 3D XPoint technology, we will be shipping our QuantX solutions for revenue in 2017 and continue to believe this innovative technology will be an important contributor to Micron's future success. This month, just after our quarter closed, we finalized the acquisition of Inotera in Taiwan which we expect to continue to provide strategic and financial opportunities for the Company. We are excited to welcome the Inotera team to Micron and look forward to realizing the benefits of the new operating model. Now I'd like to turn it over to Ernie.

就 3D XPoint 技術而言，我們將在 2017 年推出 QuantX 解決方案以實現盈利，並且我們仍然相信這項創新技術將對美光未來的成功做出重要貢獻。本月，就在我們季度結束後不久，我們完成了對台灣 Inotera 的收購，我們預計這將繼續為公司提供策略和財務機會。我們非常高興地歡迎 Inotera 團隊加入美光，並期待實現新營運模式帶來的好處。現在我想把麥克風交給厄尼。

Thank you, Mark. As we indicated earlier this month, we continue to see positive trends in the overall business environment resulting in fiscal Q1 performance that came in above the high end of the guidance ranges we provided in October. Today I'll first discuss some technology and business unit details followed by an overview of the Company's results for the quarter and guidance for our fiscal second quarter.

謝謝你，馬克。正如我們本月稍早所指出的，我們繼續看到整體商業環境的正面趨勢，使得第一財季的業績超過了我們在 10 月提供的預期範圍的上限。今天我將首先討論一些技術和業務部門的細節，然後概述公司本季的業績以及我們對第二財季的展望。

DRAM represented 61% of our total revenue with the following segmentation. Mobile represented about 30%, up from 25% the prior quarter. The PC segment was in the mid-20% range and the server business was in the high-teens percent range. Specialty DRAM, which includes networking, graphics, auto and other embedded technologies, was in the mid-20% range, down from the prior quarter.

DRAM占我們總收入的61%，具體細分如下。行動端佔比約 30%，高於上一季的 25%。PC 業務佔比在 20% 左右，伺服器業務佔 10% 以上。包括網路、圖形、汽車和其他嵌入式技術在內的專用DRAM的佔比在20%左右，比上一季下降。

In our Non-Volatile Memory business, trade revenue represented 32% of total revenue, with the following segmentation. Consumer, which includes memory cards, USB and components, represented 40%, down from the prior quarter. Mobile was in the low-20% range, up from the prior quarter, as we saw the continued impact of our completed customer qualifications. As a reminder, eMCPs are primarily in the Mobile segment. SSDs were in the mid-teens range, up from the prior quarter and the automotive, industrial multi-market, and other embedded applications were in the 20% range.

在我們的非揮發性記憶體業務中，貿易收入佔總收入的 32%，具體細分如下。消費品（包括記憶卡、USB 和組件）佔 40%，比上一季下降。行動業務佔比在 20% 左右，比上一季有所上升，這主要得益於我們已完成的客戶資格審查工作的持續影響。需要提醒的是，eMCP 主要應用於行動領域。SSD 佔比在 15% 左右，比上一季有所成長；汽車、工業多市場和其他嵌入式應用佔比在 20% 左右。

Turning to performance by business unit, the Compute and Networking business unit reported fiscal Q1 revenue of $1.47 billion, up 18% sequentially, primarily due to stronger demand and higher 20-nanometer shipments and a stronger pricing environment. The non-GAAP operating profit was $204 million or 14% of revenue.

以業務部門來看業績，計算和網路業務部門報告稱，第一財季收入為 14.7 億美元，環比增長 18%，主要原因是需求強勁、20 奈米晶片出貨量增加以及定價環境走強。非GAAP營業利潤為2.04億美元，佔營收的14%。

In the Enterprise segment, we executed well in shipping 20-nanometer solutions to the market and qualified several lower cost products at multiple customers. Cloud was CMBU's fastest growing segment and Micron is now qualified on most high volume sockets for the top customers in this segment. Demand is being driven by both our leading edge DDR4 solutions, as well as continuing need for DDR3.

在企業級領域，我們成功地將 20 奈米解決方案推向市場，並為多家客戶驗證了多款低成本產品。雲端業務是 CMBU 成長最快的業務板塊，而美光目前已獲得該板塊頂級客戶的大多數大批量插槽的認證。需求的驅動力既來自我們領先的 DDR4 解決方案，也來自對 DDR3 的持續需求。

In graphics, we had continued share growth in GDDR with our major graphics customers. New graphics card launches and strong console sales sustained favorable demand for both GDDR5 and GDDR5X. In Networking, we saw shipment and revenue growth, bolstered by the continued transition to 20-nanometer, 4 gigabyte DDR3 and 8 gigabyte DDR4. We continue to see strong interest in our high performance memory portfolio, as well. Finally, within the client segment, ASP strength exceeded our expectations and solid execution on 20-nanometer drove improved shipments and cost reductions.

在圖形領域，我們與主要圖形客戶的 GDDR 市佔率持續成長。新顯示卡的發布和強勁的遊戲主機銷售持續推動了對 GDDR5 和 GDDR5X 的良好需求。在網路領域，我們看到出貨量和收入均有所成長，這得益於向 20 奈米、4 GB DDR3 和 8 GB DDR4 的持續過渡。同時，我們也看到市場對我們的高效能記憶體產品組合表現出濃厚的興趣。最後，在客戶領域，ASP 的強勁表​​現超出了我們的預期，而 20 奈米技術的穩健執行推動了出貨量的增加和成本的降低。

The mobile business delivered fiscal Q1 revenue of $1.03 billion, up 54% sequentially, driven by completed customer qualifications and strong sales of LPDRAM and mobile NAND products in an improved pricing environment. The non-GAAP operating income was $89 million or 9% of revenue, as we continue to ramp our 20-nanometer products and made substantial progress reducing higher cost early production inventory. The Embedded business unit delivered fiscal Q1 revenue of $578 million, up 13% sequentially. Non-GAAP operating income was $178 million or 31% of revenue.

行動業務第一財季營收達 10.3 億美元，環比增長 54%，這主要得益於客戶資質認證的完成以及在價格環境改善的情況下 LPDRAM 和行動 NAND 產品的強勁銷售。非GAAP營業收入為8,900萬美元，佔營收的9%，因為我們持續擴大20奈米產品的產能，並在降低成本較高的早期生產庫存方面取得了實質進展。嵌入式業務部門第一財季營收達 5.78 億美元，季增 13%。非GAAP營業收入為1.78億美元，佔營收的31%。

The results were primarily driven by seasonally strong consumer business and record automotive revenue. Embedded ASP trends tend to be more stable compared to the broader compute and mobile markets, but we are beginning to see the benefit of tightening supply/demand in this business unit, as well. Consumer revenue was up 25% sequentially, driven by home automation and camera application. In addition, our 20-nanometer DDR4 products continue to ramp into some 4K set-top box applications.

業績主要得益於季節性強勁的消費業務和創紀錄的汽車收入。與更廣泛的運算和行動市場相比，嵌入式 ASP 趨勢往往更加穩定，但我們也開始看到，在這個業務部門收緊供需關係的好處。受家庭自動化和攝影機應用的推動，消費者收入較上季成長 25%。此外，我們的 20 奈米 DDR4 產品正逐步應用於一些 4K 機上盒應用。

The Automotive business performed well with revenue up 7% sequentially and 11% year-over-year. These solid results continue to be driven by strong and increasing demand for both DDR3 and e.MMC solutions for infotainment, instrument cluster and LPDRAM for advanced driver assist systems applications.

汽車業務表現良好，營收季增 7%，年增 11%。這些穩健的業績持續受到市場對資訊娛樂系統、儀錶板用 DDR3 和 e.MMC 解決方案以及高級駕駛輔助系統用 LPDRAM 的強勁且不斷增長的需求的推動。

The industrial and multi-market business increased 6% sequentially with a strong quarter for our NOR business combined with ramping our NAND solutions into the Japanese amusement market. In addition, we continue to see growing demand for our industrial grade managed NAND solutions.

工業和多市場業務環比增長 6%，這得益於 NOR 業務的強勁季度表現，以及 NAND 解決方案在日本娛樂市場的快速發展。此外，我們持續看到市場對我們工業級管理型 NAND 解決方案的需求不斷增長。

The Storage business delivered fiscal Q1 revenue of $860 million, up 13% sequentially. The non-GAAP operating loss was $45 million, or 5% of revenue. During the quarter, SBU strengthened both the NAND and SSD product portfolios, having now entered fully ramped production and customer qualification of 3D TLC NAND client and cloud drives. Our ramp of 3D TLC cost competitive products will position us to effectively participate more fully in this growth segment. SBU is also benefiting from a favorable supply/demand balance in the industry with like-for-like pricing improving for many products. Demand drivers look strong for the foreseeable future.

儲存業務第一財季營收達 8.6 億美元，季增 13%。非GAAP營業虧損為4,500萬美元，佔營收的5%。本季度，SBU 加強了 NAND 和 SSD 產品組合，目前 3D TLC NAND 用戶端和雲端硬碟已全面投入量產並完成客戶認證。我們3D TLC成本競爭力產品的快速成長將使我們能夠更有效地參與這一成長領域。SBU 也受惠於業界有利的供需平衡，許多產品的同類產品價格都有所改善。在可預見的未來，需求驅動因素依然強勁。

Moving on to overall Company results, revenue for the first fiscal quarter was $3.97 billion, up 23% sequentially, and driven by strong volume shipments for DRAM combined with increasing ASPs. Trade NAND shipments also increased as a result of the successful crossover of 3D production which occurred in the quarter, and we experienced stable blended ASPs with like-for-like ASPs trending up in many cases.

接下來來看公司整體業績，第一財季營收為 39.7 億美元，季增 23%，這主要得益於 DRAM 的強勁出貨量以及不斷上漲的平均售價。由於本季 3D 生產成功過渡，貿易 NAND 出貨量也有所增加，並且我們觀察到混合平均售價保持穩定，在許多情況下，同類平均售價呈上升趨勢。

Non-GAAP gross margin for the quarter was 26%, up from 19% in the prior quarter, driven by a strong pricing environment, particularly for DRAM, and solid execution on cost per bit reductions. NAND cost reductions were driven by an ongoing ramp of 3D and the portfolio shifting to higher density TLC enabled solutions. Non-GAAP net income was $335 million, or $0.32 per share.

本季非GAAP毛利率為26%，高於上一季的19%，這主要得益於強勁的價格環境，尤其是DRAM的價格環境，以及每比特成本降低的良好執行。NAND 成本的降低得益於 3D 技術的持續普及以及產品組合向更高密度 TLC 解決方案的轉變。非GAAP淨利為3.35億美元，即每股0.32美元。

Turning to results by product line, DRAM revenue increased 24% compared to the prior quarter as a result of an 18% increase in bit shipments and a 5% increase in ASPs. DRAM gross margins for the first quarter increased 8 percentage points sequentially to 28%, primarily driven by the strong pricing environment and continued 20-nanometer ramp. Our Non-Volatile Trade revenue increased 26% compared to the prior quarter, reflecting a 26% increase in bit shipments. ASPs were relatively unchanged from the prior quarter on a blended basis.

以產品線來看，DRAM 營收較上一季成長 24%，這得益於比特出貨量成長 18% 和平均售價成長 5%。第一季DRAM毛利率季增8個百分點至28%，主要得益於強勁的價格環境和20奈米製程的持續量產。與上一季相比，我們的非波動性交易收入成長了 26%，反映出比特出貨量成長了 26%。以綜合數據計算，平均售價與上一季相比基本保持不變。

Gross margin increased 6 percentage points sequentially to 23% as cost per bit was down 8%, benefiting from the 3D and TLC ramps. Non-GAAP operating expenses for the quarter were $594 million, slightly below the lower end of our guided range, driven by lower prequalification expenses, lower legal costs, and higher expense sharing credits.

毛利率季增 6 個百分點至 23%，每位元成本下降 8%，這得益於 3D 和 TLC 製程的快速發展。本季非GAAP營運支出為5.94億美元，略低於我們預期範圍的下限，主要原因是資格預審費用、法律成本和費用分攤抵免額較低。

The Company generated cash flow of $1.1 billion, an increase of $200 million over last quarter, and we ended the quarter with cash and marketable investments of approximately $4.3 billion. In the first fiscal quarter, capital expenditures net of partner contributions were approximately $1.18 billion.

公司本季實現現金流 11 億美元，比上一季增加 2 億美元，截至本季末，公司現金及有價投資約 43 億美元。在第一財政季度，扣除合夥人出資後的資本支出淨額約為 11.8 億美元。

Moving now to the guidance for the second quarter. On a non-GAAP basis, we expect the following: Consolidated revenue in the range of $4.35 billion to $4.7 billion, gross margin in the range of 31% to 34%, operating expenses between $590 million and $640 million, operating income ranging between $800 million and $900 million, and EPS ranging between $0.58 and $0.68 per share based on 1.123 billion diluted shares.

接下來是第二季業績展望。依非GAAP準則，我們預期：合併收入在43.5億美元至47億美元之間，毛利率在31%至34%之間，營業費用在5.9億美元至6.4億美元之間，營業利潤在8億美元至9億美元之間，每股收益在0.58美元至0.68美元之間（基於11.23億股稀釋股份）。

Please note that as indicated earlier this month, we expect the impact from the Inotera acquisition to be accretive beginning this quarter. Specifically, for fiscal quarter 2, we expect the accretion to positively impact gross margins by low-single-digit percentage and contribute approximately $0.02 to EPS. These impacts have already been included in the guidance I just provided and will not be further distinguished as we provide guidance in future quarters.

請注意，正如本月初所指出的，我們預計從本季開始，Inotera 收購的影響將帶來增益。具體而言，對於第二財季，我們預計該項成長將對毛利率產生低個位數百分比的正面影響，並為每股盈餘貢獻約 0.02 美元。這些影響已包含在我剛才提供的指導意見中，在未來幾季的指導下將不再區分。

From an operational perspective, we remain on track to achieve the bit growth and cost per bit reduction targets that we've previously shared and we look forward to sharing more details on our progress and plans at our analyst conference on February 2. With that, I will turn it back to Mark.

從營運角度來看，我們仍有望實現先前公佈的比特成長和每比特成本降低目標，我們期待在2月2日的分析師大會上分享更多關於我們進展和計畫的細節。接下來，我將把發言權交還給馬克。

Thank you, Ernie. To summarize, we're entering our second quarter with a number of positive drivers across the business. The markets for both DRAM and NAND are healthy and improving, and I'm pleased with our operational execution over the past several quarters. We will continue deploying leading edge technology and shifting our product portfolio toward higher value segments and products. Operator, we're now ready to begin the Q&A.

謝謝你，厄尼。總而言之，我們進入第二季時，公司各方面都有許多正面的驅動因素。DRAM 和 NAND 市場都發展良好且不斷改善，我對我們過去幾季的營運執行情況感到滿意。我們將繼續部署前沿技術，並將產品組合轉向更高價值的領域和產品。操作員，我們現在可以開始問答環節了。

Thank you, sir.

謝謝您，先生。

(Operator Instructions)

（操作說明）

Our first question comes from the line of Blayne Curtis of Barclays. Your line is open.

我們的第一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。您的線路已開通。

Hi, this is Chris Hemmelgarn on for Blayne. Thanks very much for taking the question, and congrats on the great quarter. First of all, just regarding Inotera, could you help us understand roughly how much you expect consolidating it, fully consolidating operations to add to bit output on the DRAM side in the February quarter?

大家好，我是克里斯‧赫梅爾加恩，為您報道布萊恩。非常感謝您回答這個問題，也恭喜您本季業績優異。首先，就 Inotera 而言，您能否大致說明一下，您預計在 2 月份季度，透過全面整合運營，將 DRAM 端的比特輸出增加多少？

We already had included the benefits of that since we took 100% of the output. So it really represents no material change to anything we've provided previously.

由於我們獲得了 100% 的產出，因此我們已經包含了這些收益。所以，這實際上並沒有對我們之前提供的任何內容產生實質的影響。

No, I just mean in terms of -- obviously, you'd expect the recognized bit output to be up quarter-on-quarter. Any guide in terms of like what percentage of the existing -- .

不，我的意思是——顯然，你會期望識別出的比特輸出量環比增長。任何關於現有百分比的指南——。

Obviously, we said all along that as we have full managerial control of the entity we will have increased operational flexibility and the opportunity to potentially fine-tune some of our management practices, et cetera. We expect that over time that will provide some modest benefits to manufacturing efficiency. All of those are baked into our overall projections on a go-forward basis and we don't anticipate breaking out individual fabs for you on a go-forward basis.

顯然，我們一直都說，由於我們對該實體擁有完全的管理控制權，我們將擁有更大的營運靈活性，並有機會對我們的一些管理做法進行微調等等。我們預計，隨著時間的推移，這將對生產效率帶來一些適度的好處。所有這些都已納入我們未來的整體預測中，我們預計不會在未來單獨向您介紹各個晶圓廠的情況。

Okay, that's helpful. And then as a quick follow-up, there's been, obviously, a lot in the news about potential changes to policies with the new presidential administration coming in. As I recall, you guys had a chance to sit down and chat some of that over with them. I was just curious if you had any thoughts about how some of the [river] changes are going to impact your business in the coming years?

好的，這很有幫助。然後，很顯然，新聞中有很多關於新總統政府上台後政策可能改變的報導。我記得，你們當時有機會坐下來和他們聊聊這些事。我只是好奇，您對未來幾年河流的一些變化將如何影響您的業務有什麼看法？

Micron did not actually participate in the gathering of tech executives that happened recently. Through our activities, our ongoing activities and engagement with government, we continue to stay involved in all sorts of policies that we believe impact our business. But there's really nothing specific that we would have to say about how that transition is going or anything of that nature at this point.

美光公司其實並沒有參加最近舉行的科技高階主管聚會。透過我們的活動、持續的活動以及與政府的互動，我們將繼續參與我們認為會影響我們業務的各種政策。但就目前而言，我們真的沒有什麼具體的事情要對這種過渡進展或類似的事情說。

Okay. Thanks much, and congrats again on the strong quarter.

好的。非常感謝，再次恭喜你們取得了強勁的季度業績。

Thank you. Our next question comes from Vijay Rakesh of Mizuho. Your line is open.

謝謝。下一個問題來自瑞穗銀行的Vijay Rakesh。您的線路已開通。

Hi, guys, congrats on a great set of results here. Just on the DRAM side, I know you mentioned that, obviously, great results there, as well. How is 60-nanometer going? How do you see the transition to 60-nanometer as you progress through the year?

嗨，各位，恭喜你們取得了這麼棒的成績。關於DRAM方面，我知道你提到過，顯然，那方面也取得了非常好的結果。60奈米製程進展如何？隨著時間的推移，您如何看待向 60 奈米技術的過渡？

I'm sorry to 1X nanometer?

對不起，1X奈米？

Yes.

是的。

On the DRAM front?

DRAM方面呢？

That's correct.

沒錯。

We're very pleased with the product progress we're making. We have a number -- a broad set of products that are supported by that 1X technology. It's running in Japan, as well as our DRAM fab in Taichung, and we have a number of mobile products, as well as compute and server products, all of which are progressing on schedule and we're quite happy with.

我們對目前的產品研發進度非常滿意。我們有許多產品——涵蓋了廣泛的產品系列——都支援這項 1X 技術。它在日本以及我們在台中的DRAM工廠都有生產，我們有很多移動產品以及計算和伺服器產品，所有這些都在按計劃進行，我們對此非常滿意。

Great. And on the 3D NAND side, happy to see you guys start up the second generation 64 layer. Any thoughts on how we should see that progress? Obviously on crossover already, but how do you see the 64 layer ramping through 2017? Thanks.

偉大的。在 3D NAND 方面，很高興看到你們開始研發第二代 64 層技術。對於我們該如何看待這項進展，大家有什麼想法？顯然，64層架構已經發展到一定程度了，但您認為64層架構在2017年的發展前景如何？謝謝。

Yes, just to reiterate, we believe it will be significant late in the fiscal year in terms of the bit output. It's a very significant shrink for us. So we're very excited about the efficiencies that will bring to our operation, but its impact will occur later in the fiscal year.

是的，再次重申一下，我們相信在本財年後期，比特產量將顯著成長。這對我們來說是一個非常大的降幅。因此，我們對這將為我們的營運帶來的效率提升感到非常興奮，但其影響將在本財年稍後顯現。

Great, thank you.

太好了，謝謝。

Thank you. Our next question comes from Mark Delaney of Goldman Sachs. Your question, please.

謝謝。下一個問題來自高盛的馬克·德萊尼。請問您的問題。

Hi, yes, good afternoon. Thanks very much for taking the questions. First question, was hoping you could help us understand the sustainability of some of the strong bit growth trends that you reported in the November quarter. I think you've talked about growing above the market in 2017 in both DRAM and in NAND. Can you sustain some of these types of strong sequential bit growth trends as you look into February?

你好，下午好。非常感謝您回答這些問題。第一個問題是，希望您能幫助我們了解您在 11 月季度報告中提到的一些強勁的比特成長趨勢的可持續性。我認為您曾談過，2017 年 DRAM 和 NAND 兩大領域的成長都將超過市場平均值。展望二月份，您能否維持這些強勁的連續比特成長趨勢？

Yes, we don't have any bit growth update for you relative to the two-year CAGRs that we had previously forecast. We're still on track to sustain those numbers, and trying to get down quarter-to-quarter, we think, is less productive than continuing to focus on that long-term productivity increase in trend.

是的，我們目前沒有任何關於兩年複合年增長率（CAGR）的最新數據可以與您分享，這些數據與我們先前預測的相差甚遠。我們仍有望維持這些數字，我們認為，與其試圖逐季降低成本，不如繼續專注於長期生產力成長的趨勢，這樣效率更高。

Got it. Okay. And then for a follow-up question, I was hoping you could help us understand a little bit more on some of the end market trends in PCs and handsets, and if you could elaborate specifically on what you're seeing in terms of demand trends in the China handset market?

知道了。好的。其次，我希望您能幫助我們更深入地了解個人電腦和手機終端市場的一些趨勢，特別是您能否具體闡述一下您在中國手機市場觀察到的需求趨勢？

Yes, so first of all, on PCs, I think you've got the same market data we have there. The PC industry ended up maybe a little stronger than any of us anticipated. Still from a unit perspective, flattish to maybe down a percent, but overall generating about 10% DRAM bit growth going into that segment.

是的，首先，在PC端，我認為你們掌握的市場數據和我們掌握的是一樣的。個人電腦產業的最終表現可能比我們任何人預期的都要強勁一些。從單位數量來看，成長基本上持平，甚至可能下降一個百分點，但總體而言，該細分市場的 DRAM 位元成長約為 10%。

Mobile is interesting. We continue to see pretty good bit growth by system. On average for the mobile market, probably moving to 2.4 gigabytes of DRAM and high 30%s, somewhere in the 35% to 40%, maybe in the middle of that range in terms of gigabytes of NAND.

行動裝置很有意思。我們看到各系統的數據成長持續良好。行動市場平均而言，DRAM 容量可能會達到 2.4 GB，NAND 快閃記憶體容量可能會達到 30% 以上，或者在 35% 到 40% 之間，也許會處於這個範圍的中間位置。

So if you net that out, that's almost 20% DRAM bit growth per system and maybe a little north of 40% on NAND. So for that market in aggregate, pretty strong, and in particular the value smartphone probably seeing the highest bit growth per system of any of those segments.

所以，如果把這些加起來，每個系統的 DRAM 位元成長將接近 20%，而 NAND 的成長可能略高於 40%。因此，就整個市場而言，表現相當強勁，尤其是性價比高的智慧型手機，其係統每比特成長率可能是所有細分市場中最高的。

Thank you very much.

非常感謝。

Thank you. Our next question comes from Rajvindra Gill from Needham & Company. Your line is open.

謝謝。我們的下一個問題來自 Needham & Company 的 Rajvindra Gill。您的線路已開通。

Yes, thank you. Congratulations, as well, on excellent results. Housekeeping question first, on the taxes, I think this quarter was about $30 million. Can you give some sense of what the guidance for taxes going forward would be?

是的，謝謝。也祝賀你取得了優異的成績。首先問個簡單的問題，關於稅收，我認為本季的稅收約為 3000 萬美元。您能否大致說明一下未來稅務的指導方針？

I think I'd guide you to low-teens millions, which would be low-single-digit tax rate and that will change as the Company's profitability changes. Obviously, when the profitability goes up, the tax rate will sequentially decline a little bit because of where that income is generated and should the Company's profitability decline, the actual rate will creep up just a little bit.

我認為我會引導你把金額控制在幾百萬美元左右，這樣稅率就會很低，而且稅率會隨著公司獲利能力的變化而變化。顯然，當獲利能力上升時，由於收入來源的原因，稅率會相應略微下降；而如果公司獲利能力下降，實際稅率則會略微上升。

Okay. Great. And in the commentary you had mentioned around 15% to 20% bit supply growth in DRAM baring any additional supply from competitors. Can you talk a little about the -- what you're seeing in terms of the transition to 18-nanometer for some of your competitors, and is there risk in your mind in terms of additional supply coming online, any thoughts on that would be helpful?

好的。偉大的。你在評論中提到，在不考慮競爭對手額外供應的情況下，DRAM 的位元供應量將增加約 15% 至 20%。您能否談談您觀察到的一些競爭對手向 18 奈米製程過渡的情況？您認為新增產能上線是否有風險？您對此有何看法？

We don't have a great crystal ball as to what our competitors are doing. We read the same reports that you guys read. All of that, plus all the other internal intelligence we can generate, is baked into our ranges and in the data sheet that we provided.

我們無法預知競爭對手的動向。我們和你們一樣，都讀同樣的報告。所有這些，加上我們能夠產生的所有其他內部信息，都已融入我們的產品系列和我們提供的數據表中。

So I think there has been some chatter recently potentially about a few incremental wafers from one of the suppliers. Our view of that is if that were to happen it's a relatively minor adjustment in terms of the overall scope of the bit growth that we're projecting and that would probably not cause us to change that range that we've given you.

所以我覺得最近有一些傳言說，某個供應商可能會少量增產一些晶圓。我們認為，如果這種情況發生，就我們預測的位元成長的整體範圍而言，這只是一個相對較小的調整，可能不會導致我們改變我們給出的範圍。

All right, great. And last question, in terms of on the balance sheet, how do you think about reducing the level of debt going forward now that you're entering into a period of higher free cash flow generation? We're at about $8.5 billion, or close to $10 billion of debt. Any thoughts on the strategy about reducing debt levels over time?

好的，太好了。最後一個問題，就資產負債表而言，鑑於您即將進入自由現金流產生量較高的時期，您打算如何降低未來的債務水準？我們目前的債務約 85 億美元，接近 100 億美元。對於逐步降低債務水準的策略，您有什麼想法？

Yes, so to be consistent with my prior comments, first thing I want to do is make sure we generate the cash, which we're working on feverishly and expect to make some headway on here with the results we've just shared. And then as we get to that point and look at the credit markets, as well as a number of other factors, we will make a determination about the best way to delever. But delevering for the Company remains an important priority as we have an expectation of increased free cash flow this year.

是的，為了與我之前的評論保持一致，我首先要確保我們能籌集到資金，我們正在全力以赴地努力，並期望憑藉我們剛剛分享的結果在這方面取得一些進展。然後，當我們達到那個階段，並審視信貸市場以及其他一些因素時，我們將決定去槓桿化的最佳方式。但對於公司而言，降低槓桿率仍然是一項重要的優先事項，因為我們預計今年的自由現金流將會增加。

Okay. Great. Thanks again.

好的。偉大的。再次感謝。

Thank you. Our next question comes from Timothy Arcuri of Cowen. Your question, please.

謝謝。我們的下一個問題來自 Cowen 公司的 Timothy Arcuri。請問您的問題。

Thank you very much. First question, Mark, you made some recent comments about China and about them potentially flooding the market if they do get access to IP, so my question is, can you again remind us of what your mission statement is around the potential of sharing IP or licensing IP into China? Thanks.

非常感謝。馬克，第一個問題，你最近對中國發表了一些評論，說如果他們獲得智慧財產權，可能會大量湧入市場。所以我的問題是，你能否再次提醒我們，你們關於與中國共享智慧財產權或授權智慧財產權的使命宣言是什麼？謝謝。

So first of all, let me say that comments that I make in the press are sometimes not in the full context of the discussion I had. And I think one of the things to think about in terms of what might or might not happen in China is that these things do take time. Our investment cycles take place over periods of useful life of equipment of five years. We think in the long term, when we think about investing in our business to make sure that we're being good stewards of the shareholders' money, but anything that would happen there is going to play out over many years. And having a crystal ball as to exactly how that will play out is difficult to say.

首先，我想說的是，我在媒體上發表的評論有時並不完全符合我當時參與的討論的背景。我認為，在考慮中國可能發生的事情時，需要考慮的一點是，這些事情確實需要時間。我們的投資週期以設備五年使用壽命為週期。從長遠來看，我們在考慮投資業務時，會確保我們能夠妥善管理股東的資金，但任何可能發生的事情都需要很多年才能顯現效果。至於事情最終會如何發展，很難說。

Relative to what Micron has said about our interests in China, we have a great interest in doing business in China. We have large existing operations there including back end operations, circuit design, product engineering activities, as well as software and firmware activity. We have a lot of activity in China already from an operations perspective and we have a large number of important customers over there. So we stay fully engaged with China and continue to expect to have strong relationships there and grow our business.

就美光公司對我們在中國的業務興趣所做的表態而言，我們本人對在中國開展業務有著濃厚的興趣。我們在那裡擁有龐大的現有業務，包括後端營運、電路設計、產品工程活動以及軟體和韌體活動。從營運角度來看，我們在中國已經有很多業務活動，並且我們在那裡擁有大量重要客戶。因此，我們將繼續與中國保持密切聯繫，並期待與中國建立牢固的關係，發展我們的業務。

Relative to whether we would undertake any expansion or licensing activity in China, what we said is really as it has been, which is our job is to look for opportunities to make Micron a stronger Company. And we will continue to investigate lots of options about ways to generate shareholder value, whether it's in China or any other part of the world. And that's just part of us being effective managers of the Company, and we'll continue to do that and if we can figure out things that make the Company stronger, we'll always consider that in terms of the long-term benefits and act accordingly.

至於我們是否會在中國進行任何擴張或授權活動，我們先前的說法與現在一致，那就是我們的工作是尋找機會，使美光成為更強大的公司。我們將繼續探索各種創造股東價值的途徑，無論是在中國還是在世界其他任何地方。這只是我們作為公司有效管理者的一部分，我們將繼續這樣做，如果我們能找到使公司更強大的方法，我們始終會從長遠利益的角度考慮，並採取相應的行動。

Okay. Great. Thank you for that. And then I had a follow-up to a question that was asked about some of the tax law changes coming.

好的。偉大的。謝謝。然後，我針對有人提出的關於即將出台的一些稅法改革的問題進行了後續提問。

It seems pretty obvious that there's going to be some sort of VAT that gets added to product that's made outside the US and you guys are, obviously, fairly exposed to that. So I'm wondering, is there any like contingency planning happening? And I'm trying to assess the likelihood that maybe CapEx might have to be a little higher as you may have to plan for some of those contingencies. Thanks.

很明顯，在美國境外生產的產品會被徵收某種增值稅，而你們顯然會受到相當大的影響。所以我想知道，是否有任何應急預案之類的東西在製定？我正在評估資本支出可能需要略微增加的可能性，因為您可能需要為一些突發情況做好準備。謝謝。

So, Tim, really, it's an issue of what you think any such tariffs of whatnot, how they would impact our end market, not necessarily as they directly impact Micron, because typically we manufacture overseas. We sell in many cases overseas, and then it's our customers who would then be subject to any of those importation issues.

所以，提姆，實際上，問題在於你認為任何此類關稅等等會如何影響我們的終端市場，而不是它們會直接影響美光，因為我們通常是在海外生產的。我們許多產品都銷往海外，因此，我們的客戶將面臨各種進口問題。

I think it's really too soon to tell what the impact of that would be because simultaneously we're reading about a dramatic reduction of the corporate tax rate and also the ability to repatriate billions of dollars of cash. So there's a lot of moving pieces to this, and I think anybody who would portend to be able to specifically predict things is probably guessing a little bit right now.

我認為現在判斷這將產生什麼影響還為時過早，因為與此同時，我們看到有關企業稅率大幅降低以及數十億美元現金可以匯回國內的消息。所以這件事有很多變數，我認為任何聲稱能夠具體預測事情的人現在可能只是在猜測。

Okay, Ernie. Thank you.

好的，厄尼。謝謝。

Thank you. Our next question comes from Joe Moore of Morgan Stanley. Your line is open.

謝謝。下一個問題來自摩根士丹利的喬·摩爾。您的線路已開通。

Great. Thank you. I wonder if you can just give us some context on why the markets are so good? And in particular, when I look at your shipments have been stronger than I expected, your competitors' shipments have been a bit stronger than I expected, and yet our checks, and everyone's checks show this -- good now and staying good for a while.

偉大的。謝謝。我想請您解釋一下，為什麼市場現在這麼好？尤其是，當我查看你們的出貨量時，發現你們的出貨量比我預期的要好，你們競爭對手的出貨量也比我預期的要好一些，然而我們的檢查結果，以及所有人的檢查結果都表明——現在情況良好，而且這種情況還會持續一段時間。

Can you give us any context on why the supply/demand balance has shifted so much in a favorable direction when everyone's shipping more bits than the sort of long-term trend line?

能否解釋一下，為什麼在所有人的出貨量都超過長期趨勢線的情況下，供需平衡會朝著如此有利的方向發生如此大的轉變？

At the end of the day, Joe, it's got to be adding up all the pieces, right, and having less supply than demand. I will say that as the end markets that we ship into continue to segregate and the product has to find its way into the right -- or the wafers have to find their way into the right product at the right time for the right segment, getting that balance exactly right segment to segment becomes difficult.

喬，歸根究底，還是要把所有因素加起來，對吧，那就是供過於求。我想說的是，隨著我們出貨的終端市場不斷細分，產品必須找到合適的切入點——或者說晶圓必須在合適的時間以合適的方式進入合適的細分市場——要在每個細分市場之間取得精確的平衡變得非常困難。

And, therefore, I think it provides the opportunity for supply -- for pricing to react to changes in supply and demand in a way that I think is positive from a manufacturer's perspective.

因此，我認為這為供應——價格——提供了對供需變化做出反應的機會，我認為這從製造商的角度來看是積極的。

Great. That's helpful. Thank you. And then, secondly, in terms of your NAND planning, is there going to continue to be a long tail on the planer NAND business, or do you see the whole business transitioning to 3D over time?

偉大的。那很有幫助。謝謝。其次，就你們的 NAND 規劃而言，平面 NAND 業務是否會繼續保持長尾效應，還是你們認為整個業務會隨著時間的推移過渡到 3D 呢？

There's definitely a tail and it definitely exists for a long time. The question is how significant is that in terms of bits and what eventually will be the pricing in that long tail. I think that the planer bits are going to get squeezed out of a lot of the end market applications as we start to generate more 3D supply as an industry.

肯定有尾巴，而且肯定存在了很長時間。問題是，就比特而言，這有多重要，以及最終長尾市場的定價會是多少。我認為，隨著整個產業開始生產更多的 3D 列印產品，刨削刀具將在許多終端市場應用中被擠出市場。

However, there will be a long tail that's probably less than 10% of the overall market that sticks around for a long, long time and serves very valuable niches. It's a matter of getting that balance right, making sure you have the product, have the right products in that -- in those lagging nodes so you can address the right market opportunities.

然而，會有一部分長尾市場，可能佔整個市場的不到 10%，它們會長期存在，服務於非常有價值的細分市場。關鍵在於找到合適的平衡點，確保你擁有合適的產品，在那些滯後節點上擁有合適的產品，這樣你才能抓住正確的市場機會。

That's very helpful. Thank you very much.

那很有幫助。非常感謝。

Thank you. Our next question comes from Steven Fox of Cross Research. Your question, please.

謝謝。我們的下一個問題來自 Cross Research 公司的 Steven Fox。請問您的問題。

Hi. Good afternoon. I was just wondering if you could talk a little bit about some of the higher margin, higher mix products where maybe -- where you mentioned like-for-like pricing also getting better.

你好。午安.我只是想問您能否談談一些利潤率較高、產品組合較多的產品，您之前提到過，在這些產品中，同類產品的定價也在不斷改善。

For example, in the storage business unit with SSDs, how are you managing your customer expectations for longer design cycles and qualification cycles given that product is tight now and you're saying it could be tight for a while, especially as you ramp 3D NAND and maybe it has some puts and takes along the way?

例如，在固態硬碟 (SSD) 儲存業務部門，鑑於目前產品供應緊張，而且您也表示供應緊張的情況可能會持續一段時間，尤其是在您大力推進 3D NAND 快閃記憶體生產的過程中，可能會遇到一些波折，您是如何管理客戶對更長設計週期和認證週期的期望的？

It's always tricky when you have customers with supply expectations, making sure that you are making the right commitments that you can deliver on while not significantly over or under committing. There are lots of those segments that are value-add where you have to have long-term customer relationships where there's a certain amount of trust, and I think from Micron's perspective, that's actually an advantage for us. Our customers like us. They want us to succeed. We have a long-term history of meeting our commitments, and so I think in this kind of environment that actually plays out pretty well for us.

當客戶對供貨有預期時，總是很棘手的，確保做出你能兌現的承諾，同時又不會過度承諾或承諾不足。有很多這樣的增值領域，你需要與客戶建立長期的關係，建立一定的信任，我認為從美光的角度來看，這對我們來說實際上是一個優勢。我們的客戶喜歡我們。他們希望我們成功。我們一直以來都信守承諾，所以我認為在這種環境下，這實際上對我們非常有利。

Some of the specific segments that are value-add that are pretty important, things like graphics, we grew our graphics business pretty substantially this year. In many cases, those are sole source relationships, or two sources at most, and a significant piece of the customer's end product and so those types of relationships, I think, are flagships for that kind of thought process. Automobile also, I think, is another one where Micron has very significant market share, deep relationships with the customers and a trust that we're going to be there for them with the right products as markets tighten up.

有些特定的增值領域非常重要，例如圖形設計，我們今年的圖形設計業務成長相當顯著。在許多情況下，這些都是單一來源關係，或最多只有兩個來源，而且是客戶最終產品的重要組成部分，因此我認為，這些類型的關係是這種思維方式的典範。我認為，汽車產業也是美光擁有非常大的市場份額、與客戶建立深厚關係並贏得客戶信任的另一個領域，客戶相信我們會在市場競爭日益激烈時，為他們提供合適的產品。

That's really helpful. And then just a quick clarification, so on Inotera I understand you don't want to go too much deeper into the numbers, but in terms of some of the synergies that are potentially ahead of you with Inotera, should we just think of it more as the flexibility to manage bits a little bit more efficiently or should we consider that there could be some meaningful cost savings that could come through to the margins down the road? Thanks.

這真的很有幫助。然後，我想快速澄清一下，關於 Inotera，我知道您不想過多地深入探討具體數字，但就您與 Inotera 之間可能存在的協同效應而言，我們應該僅僅將其視為更有效地管理業務的靈活性，還是應該考慮未來可能會在利潤率方面帶來一些實質性的成本節約？謝謝。

This is Ernie. I think the best way to think about it is what Mark articulated earlier, which is the cost synergies are relatively small. The real opportunity will be as we align the manufacturing capability fully to the best of Micron's fabs, and that will provide more incremental opportunity to us than the cost savings piece.

這是厄尼。我認為最好的思考方式正如馬克之前闡述的那樣，那就是成本協同效應相對較小。真正的機會在於，當我們能夠將自身的製造能力與美光最好的晶圓廠完全對接時，這將為我們帶來比成本節約更大的增量機會。

Great. Thank you very much.

偉大的。非常感謝。

Thank you. Our next question comes from Chris Danely of Citigroup. Your line is open.

謝謝。我們的下一個問題來自花旗集團的克里斯·丹利。您的線路已開通。

Thanks, guys. Quick question on the mobile end market. You talked about China as being a big driver there. Can you give us any sense of how big China is as far as your mobile demand or how big of the increase it was sequentially?

謝謝各位。關於行動終端市場，我有個問題想請教一下。你曾提到中國是推動這股趨勢的重要因素。您能否大致說明中國市場對行動裝置的需求規模有多大，或是較上季成長幅度有多大？

We had pretty good growth, obviously, in all geographies and with a lot of different customers with the mobile business doubling. Some of that was with the market leaders, but a lot of it also was in China. So EMCPs have been a great business for us. A lot of that is in the Chinese value handsets, and I don't think we want to get specific in terms of percentages, but I think it's fair to say that we had strong growth in China, as well as at some of the high end smartphone manufacturers.

顯然，我們在所有地區都取得了相當不錯的成長，擁有眾多不同的客戶群，其中行動業務更是翻了一番。其中一些發生在市場領導者那裡，但許多也發生在中國。因此，EMCP 對我們來說是一項非常成功的業務。其中許多成長都來自中國經濟型手機，我們不想具體給出百分比，但可以肯定的是，我們在中國市場以及一些高階智慧型手機製造商都取得了強勁的成長。

Great. And then a second question on another end market PCs. Again, we all read the same stuff you do about shortages in DRAM in the PC end market. I would you say that is the end market where supply is tightest, and any estimate of when these lead times could be -- these extending lead times could be relieved?

偉大的。然後是關於另一款面向終端市場的PC的第二個問題。再說一遍，我們都看到了和你一樣的關於PC終端市場DRAM短缺的新聞。您認為終端市場是供應最緊張的地區嗎？能否預估一下這些延長的交貨週期何時能夠緩解？

Yes, I'd say it's tight there, but product is moving around, right? The industry is not static, and what tends to happen as the market tightens up like this is people will sacrifice a little bit of short-term margin to move product into segments they believe are longer term, more advantaged.

是的，我覺得那裡的貨源很緊張，但產品還是有流通的，對吧？產業並非一成不變，隨著市場像這樣趨緊，人們往往會犧牲一些短期利潤，將產品推向他們認為長期來看更有優勢的細分市場。

There's a little bit of that going on right now where perhaps margins might actually be a little higher in PCs, but people may shift production into servers because it's viewed as potentially longer term, more favorable, or mobile because it's maybe a slightly more defendable market share as things change over time.

目前確實存在一些這樣的情況，個人電腦的利潤率可能確實更高一些，但人們可能會將生產轉移到伺服器，因為伺服器被認為具有更長遠的前景，或者更有利，或者轉移到行動設備，因為隨著時間的推移，行動市場份額可能更容易守住。

Okay, thanks, guys.

好的，謝謝各位。

Thank you. Our next question comes from John Pitzer of Credit Suisse. Your line is open.

謝謝。下一個問題來自瑞士信貸的約翰‧皮策。您的線路已開通。

Yes, good afternoon, guys. Thanks for letting me ask the question. Mark, my first question is just around sort of your DRAM profitability versus peers. Absolutely, clearly, DRAM is getting better, but there's still this gap between the peers. I'm wondering if you can talk about the 1X transition for you?

是的，下午好，各位。謝謝您允許我提問。馬克，我的第一個問題是關於你們的DRAM獲利能力與同行相比如何。沒錯，DRAM 的確在不斷進步，但與其他同類產品之間仍有差距。我想請您談談您從 1X 系統過渡到 1X 系統的經歷？

It seems like there's two vectors where you might be able to close that gap. One, it just seems like a better shrink for you than maybe your peers, and, two, correct me if I'm wrong, but of most of Rexchip, I believe, is still at 25 nanometers. So it might seem to me that as you guys move to 1X you'll have a bigger wafer start base at 1X than you had at 20 nanometers. Am I thinking about that the right way, or how are you thinking about it?

似乎有兩個途徑可以彌補這個差距。第一，它似乎比你的同行更適合你；第二，如果我錯了請糾正我，但我相信 Rexchip 的大部分仍然停留在 25 納米。所以在我看來，隨著你們向 1X 製程過渡，你們在 1X 製程下所需的晶圓起始尺寸會比在 20 奈米製程下要大。我的想法對嗎？還是你怎麼想的？

First of all, at a high level, we're going to continue to outgrow the market in terms of bits like we talked about, and we're reducing cost at a faster rate than we have over the last three years. So that gap will continue to narrow with the forecast we've given you. Specifically, relative to 110 Series, yes, it's a good shrink.

首先，從宏觀層面來看，正如我們之前討論的那樣，我們在產品數量方面將繼續超越市場，我們降低成本的速度比過去三年都要快。因此，根據我們給出的預測，這一差距將繼續縮小。具體來說，相對於 110 系列，是的，這是一個不錯的縮小。

We have -- as I mentioned, we've got a number of different products coming. Some of them are bigger shrinks than others. We're pretty -- particularly excited about some of the ones that come later in the fiscal year that really drive out a lot of cost and die size, as opposed to some of the ones that come earlier and fill value-added potential segments or specific power or performance attributes that the customers are looking for.

正如我剛才提到的，我們有許多不同的產品即將推出。他們當中有些人比其他人更擅長縮減開支。我們非常興奮——尤其對本財年稍後推出的一些產品感到興奮，這些產品能夠真正降低成本和縮小晶片尺寸，而不是像一些早期推出的產品那樣，填補客戶正在尋找的增值潛在細分市場或特定功率或性能屬性。

Beyond that, I think it's fair to say that we should get a good bang for the buck on this technology transition, not only because it's a substantial shrink, but also because a chunk of it, a large chunk of it's happening in Taichung, so we're actually transitioning capacity from 25-nanometer all the way down to 1X. So it's as we did with 20-nanometer in Hiroshima and Inotera, and a big chunk of that capacity at Inotera was a double hop from 30 nanometer to 20 nanometer. This will be a double hop from 25 to 1X at the Taichung fab, and so there is a pretty good bang for the buck there.

除此之外，我認為可以公平地說，這次技術轉型應該會帶來豐厚的回報，不僅因為尺寸大幅縮小，還因為很大一部分轉型工作在台中進行，所以我們實際上是將產能從 25 奈米一直過渡到 1X。所以，就像我們在廣島和井田製作 20 奈米製程一樣，井田製作的很大一部分產能是從 30 奈米到 20 奈米的雙重躍升。這將是台中工廠從 25 倍到 1 倍的雙重升級，因此性價比相當高。

That's helpful. And then, guys, as my follow-up, you're still endorsing the two-year CAGRs for bit growth in NAND and DRAM for you. Ernie, I know you don't want to get into quarter-by-quarter, but I'm curious as how we should think about linearity of that bit growth from here on out for this fiscal year for both DRAM and NAND?

那很有幫助。然後，各位，我的後續問題是，你們仍然認可 NAND 和 DRAM 位成長的兩年複合年增長率嗎？Ernie，我知道你不想逐季度分析，但我很好奇，對於本財年DRAM和NAND而言，我們應該如何看待比特成長的線性趨勢？

And I ask the question because specifically for DRAM, if it's a linear growth rate, it just seems like the February numbers are still embedding some very conservative assumptions around pricing given how good the environment is. So how do I think about that dynamic?

我提出這個問題是因為，具體到 DRAM 而言，如果成長率是線性的，考慮到目前的良好市場環境，2 月的數據似乎仍然包含了對價格的一些非常保守的假設。那麼，我該如何看待這種動態關係呢？

I think you're going to see us make some steady quarter-on-quarter growth, but I don't think in DRAM particularly you're going to see it continue at the levels that you've seen it for the last couple quarters. And I think the best guidance we can provide is that we're going to be roughly year-on-year to get to our targets, we're going to need to be at or slightly above 50% in terms of bit growth year-on-year. We've just given you a pretty big number for Q1. So that math is getting easier and easier to work out.

我認為我們將會實現穩定的季度環比成長，但我認為DRAM尤其不會繼續保持過去幾季的水平。我認為我們能提供的最好指導是，為了實現我們的目標，我們需要大致逐年增長，在比特增長率方面，我們需要達到或略高於 50%。我們剛剛給了第一季一個相當大的數字。所以數學題越來越容易解了。

I would also tell you relative to some of the pricing, you'll note that we widened our revenue guidance range a little bit and that's reflective of a bigger business, and the fact that we realize pricing environment continues to be dynamic. So we did try to reflect our best thinking in the guidance that we've provided to you.

我也想告訴大家，關於一些定價方面，您會注意到我們稍微擴大了收入預期範圍，這反映了業務規模的擴大，以及我們意識到定價環境仍在不斷變化。因此，我們努力將我們最好的想法體現在我們提供給你們的指導意見中。

Perfect. Thanks, guys. Congratulations on the strong results.

完美的。謝謝各位。恭喜你們取得優異成績。

Thank you. Our next question comes from of Jagadish Iyer of Summit Redstone. Your question, please.

謝謝。我們的下一個問題來自 Summit Redstone 的 Jagadish Iyer。請問您的問題。

Yes, thanks so much for taking my question. First question, Mark or Ernie, how should we think about cost reduction for Gen 2 NAND versus your Gen 1, and when do you think it might become visible for you guys?

是的，非常感謝您回答我的問題。首先，Mark 或 Ernie，我們應該如何看待第二代 NAND 相對於第一代 NAND 的成本降低？你們認為什麼時候才能看到這種降低的效果？

On full conversion, think of it as roughly doubling the bits per wafer, and think of a cost down in the range of greater than 30%. So it's a big transition, but it's also, as we mentioned, won't start to become significant until later in FY17.

完全轉換後，可以想像成每片晶圓上的比特數大約翻了一番，成本下降幅度超過 30%。所以這是一個很大的轉變，但正如我們所提到的，它要到 2017 財年晚些時候才會開始變得顯著。

Okay. Then on the DRAM front, I just wanted to find out if there is going to be any meaningful wafer capacity additions from Micron in FY17. Is there a fab where you have some additional headroom for you to invest or should you invest in a new greenfield? Thank you.

好的。至於DRAM方面，我只是想了解美光在2017財年是否會有任何實質的晶圓產能成長。你有沒有額外的投資空間可以投入現有工廠，還是應該投資新建工廠？謝謝。

We're very focused on the technology upgrades that we were talking about with John a minute ago. That's where we get the biggest bang for the buck. We do have some clean room space around the network, but we have no plans to add new wafers this year.

我們非常關注剛才和約翰討論的技術升級。這樣我們才能獲得最大的投資報酬。我們網絡周圍確實有一些無塵室空間，但我們今年沒有計劃增加新的晶圓。

Thank you.

謝謝。

Thank you. Our next question comes from Harlan Sur with JPMorgan. Your line is open.

謝謝。下一個問題來自摩根大通的哈蘭‧蘇爾。您的線路已開通。

Good afternoon, guys, and solid job on the quarterly execution. And also congrats on the 600-basis-point inflection in NAND gross margins.

各位下午好，季度執行工作完成得非常出色。另外，恭喜 NAND 毛利率實現了 600 個基點的拐點。

If we focus on this, clearly, 3D bit crossover was a big driver going forward, as I think about more cost per bit declines, you still have the benefits of continued higher 3D mix, higher TLC 3D mix on Gen 1. Question here is, when should we expect TLC 3D crossover with 3D MLC? Is that going to be this quarter?

如果我們聚焦於此，很顯然，3D位元交叉是未來發展的重要驅動力。考慮到每位元成本的進一步下降，我們仍然可以享受到更高比例的3D晶片（尤其是第一代TLC 3D晶片）的好處。問題是，我們何時才能看到TLC 3D晶片與3D MLC晶片的交叉？是指本季嗎？

It definitely will be this quarter in aggregate. We expect TLC to be greater than 50% of the 3D bits.

本季整體來看，肯定會是這樣。我們預計 TLC 將大於 3D 位元的 50%。

Great. Thanks for that. And then at the product level, based off of third party estimates, the enterprise SSD market's about a $10 billion market growing at about 25% year-over-year for the next few years.

偉大的。謝謝。然後，根據第三方估計，從產品層面來看，企業級 SSD 市場規模約為 100 億美元，未來幾年將以每年約 25% 的速度成長。

You guys have low-single-digits market share while you're JV partner has about 35% market share here. High capacity SATA is the biggest portion of this market. You just announced the 5100 Series that's 3D TLC.

你們的市佔率只有個位數，而你們的合資夥伴在這裡的市佔率約為 35%。高容量SATA是這個市場中佔比最大的部分。你們剛剛發布了 5100 系列，它採用的是 3D TLC 技術。

Can you guys just give us a sense on when you're going to start shipping this in volume production? Are the large hyper scale guys the lead customers here? And just given what looks to be a step-up in the road maps and maybe some of your customer feedback, do you guys anticipate growing your shares here in the enterprise space in 2017?

你們能大概透露一下什麼時候開始大量生產出貨嗎？這裡的主要客戶是那些超大規模的企業嗎？鑑於你們的路線圖似乎有所改進，也可能收到了一些客戶的回饋，你們預計在 2017 年能在企業領域擴大市場份額嗎？

Yes, we definitely plan to grow our share. As you point out, the fact that our share is relatively small in those segments today means there's a lot of opportunity. We do have what we think is a much better product portfolio now that's got a lot of customer excitement and eagerness, and we think that we're well-positioned with long-term customers who really want to buy from Micron. So, yes.

是的，我們肯定會努力擴大市場佔有率。正如你所指出的，我們目前在這些領域的份額相對較小，這意味著存在著許多機會。我們現在擁有我們認為更好的產品組合，這讓客戶感到非常興奮和渴望，我們認為我們與真正想從美光購買產品的長期客戶建立了良好的關係。是的。

Thank you.

謝謝。

Thank you. Our next question comes from Romit Shah of Nomura. Your line is open.

謝謝。我們的下一個問題來自野村證券的羅米特·沙阿。您的線路已開通。

Yes, thank you. I just wanted to ask a question about gross margin. The guidance is much better than expected. I'm just curious, how would you suggest we think about the gross margin potential of Micron considering your mix, cost road map, and whatever baseline pricing assumptions you're making? Is last cycle's, your peak gross margin a good guidepost for us, or are you thinking about it differently?

是的，謝謝。我只是想問一下關於毛利率的問題。指導效果遠超預期。我只是好奇，考慮到你們的產品組合、成本路線圖以及你們所做的任何基準定價假設，你們建議我們如何看待美光的毛利率潛力？上個週期的毛利率高峰對我們來說是否是一個很好的參考指標，還是您有不同的看法？

That's a question that's got a thousand relative comparisons in it. What I would tell you is look, we are a different Company than at the last peak. We have a higher mix of NAND. We have a technology progression that we've tried to share with you.

這個問題包含了上千種相對比較。我想告訴你們的是，我們現在的公司和上次達到巔峰時期已經完全不同了。我們的NAND快閃記憶體佔比更高。我們有一些技術進步，並嘗試與您分享。

Certainly, I think we've outlined our cost reductions over the next three quarters or so, if you take the broad guidance we've provided. We've provided bit growth targets. You get to overlay a pricing environment and from that derive a gross margin profile. But I would expect if you have a similar market, you're going to continue to see opportunity for us to expand our gross margins.

當然，我認為，如果我們採納我們提供的整體指導，我們已經概述了未來三個季度左右的成本削減計劃。我們已設定了比特成長目標。您可以疊加定價環境，並由此得出毛利率概況。但我認為，如果你們的市場情況類似，我們將繼續看到擴大毛利率的機會。

Okay. Thanks, Ernie. Can I also ask you, what's the net operating -- the NOL balance today, and can you just educate us on restrictions in terms of utilizing that asset against future tax provisions?

好的。謝謝你，厄尼。我也可以問一下，目前的淨營業虧損餘額是多少？能否請您解釋一下，在利用該資產抵扣未來的稅務準備金方面有哪些限制？

It's somewhere in the $4 billion plus or minus range, and one of the reasons that -- and we're very focused on protecting that NOL, which is the reason we put our NOL rights plan in place and it's been the proxy now and up for shareholder review, as well. And we intend to do everything we can to continue to preserve our ability to use that because these are exactly the times that we want to have the ability to do that.

金額大約在 40 億美元左右，其中一個原因是——我們非常注重保護淨經營虧損，這也是我們制定淨經營虧損權利計劃的原因，該計劃現在已經提交股東審查。我們打算盡一切努力繼續保持使用這項技術的能力，因為在當前情況下，我們尤其需要這項能力。

Does a $4 billion balance mean that whatever the tax rate is, 5%, is the right way to think about your rate over the next several years?

40億美元的財政餘額是否意味著，無論稅率是多少，5%都是未來幾年內考慮稅率的正確方式？

No, because that would apply to US income and earnings which are taxed, unfortunately, at a much higher rate than 5%.

不，因為那將適用於美國的收入和收益，不幸的是，這些收入和收益的稅率遠高於 5%。

Okay. So you can only utilize it for US income?

好的。所以它只能用於美國收入嗎？

That's right.

這是正確的。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Thank you. Our next question comes from David Wong of Wells Fargo. Your line is open.

謝謝。下一個問題來自富國銀行的David Wong。您的線路已開通。

Thanks very much. Can you give us some idea of what you expect your debt and cash and equivalents might be at the end of the February quarter following the Inotera payments? And apart from CapEx, are there any significant post-acquisition cash charges for restructuring or anything else to do with Inotera?

非常感謝。能否大致估算一下，在支付 Inotera 款項後，到 2 月份季度末，您的債務和現金及等價物大概會是多少？除了資本支出之外，收購後是否還有其他與 Inotera 相關的重大現金支出，例如重組或其他費用？

There are no significant restructuring charges anticipated. We borrowed $2.5 billion relative to Inotera. So we would expect that to be somewhere -- our total debt to be somewhere in the range of $12 billion, high $12 billion, maybe $13 billion, plus or minus. There's a few little moving pieces around.

預計不會產生重大重組費用。我們相對於 Inotera 借款 25 億美元。因此我們預計我們的總債務將在 120 億美元左右，120 億美元以上，也許 130 億美元，上下浮動。這裡有一些小的變動部件。

We're sitting here with cash this quarter at $4.3 billion. There was a cash component to the transaction of about $500 million, and then we'll generate operating cash flow and free cash flow in fiscal Q2, which we don't guide. So the result of that will be where we'll be at cash, but I would expect based on everything I know that it's reasonable to think flat or higher.

本季我們手頭現金為 43 億美元。該交易包含約 5 億美元的現金部分，然後我們將在第二財季產生經營現金流和自由現金流，但我們不對此進行預測。所以最終結果將決定我們目前的現金流狀況，但根據我所了解的一切，我認為現金流持平或上漲是合理的。

Great. Thanks very much.

偉大的。非常感謝。

Thank you. Our next question comes from Kevin Cassidy of Stifel. Your question, please.

謝謝。我們的下一個問題來自 Stifel 公司的 Kevin Cassidy。請問您的問題。

Thank you. On your transition to the 1X DRAM process, will this be any different than past transitions, meaning are you going to be coming out into the PC market first and then mobile, or will these be targeted for certain markets?

謝謝。在向 1X DRAM 製程過渡的過程中，這與以往的過渡會有什麼不同嗎？也就是說，你們會先進入 PC 市場，然後再進入行動市場，還是會針對某些特定市場？

We've got a -- as I mentioned earlier, Kevin, we've got a broad spectrum of products. We're trying to make sure we get as many of them qualified early in the ramp as possible this time and do a slightly better job than we did at 20-nanometer. So actually we have mobile and compute products coming, and then we have additional cost reduced and broader market applications behind that.

正如我之前提到的，凱文，我們擁有種類繁多的產品。這次我們努力確保盡可能多的晶片在量產初期就能獲得合格認證，並且比我們在 20 奈米製程時做得更好一些。所以實際上我們即將推出行動和運算產品，此外，我們還有成本更低、市場應用範圍更廣的產品。

Okay. Great. And on your 3D XPoint, you said that you'd have your first revenue in 2017. Can you say what end market that would be?

好的。偉大的。在你的 3D XPoint 大會上，你曾說過你將在 2017 年獲得第一筆收入。你能說說它的最終市場是什麼嗎？

Sorry, can you repeat the question?

不好意思，您能再說一次問題嗎？

3D XPoint, what's your first end markets for that?

3D XPoint，你們的首批終端市場是什麼？

We're talking to a number of different customers and we probably don't want to say yet.

我們正在與許多不同的客戶洽談，目前可能還不想透露具體細節。

Okay. Congratulations on the great results and guidance.

好的。祝賀你們取得如此優異的成績，也感謝你們的指導。

Thank you.

謝謝。

Thank you. Our next question comes from Mark Newman of Bernstein. Your line is open.

謝謝。我們的下一個問題來自伯恩斯坦公司的馬克紐曼。您的線路已開通。

Hi. Thanks, and congrats on a great quarter. Question relating about where we are in the cycle right now. Things look really great on pricing. I wonder -- also you mentioned inventory on the DRAM maintenance level also looks good.

你好。謝謝，恭喜你們本季業績出色。關於我們目前所處週期階段的問題。價格方面看起來真的很不錯。我想問一下——您提到的DRAM維護等級的庫存情況看起來也不錯。

Do you have any comments on the inventory level of the customers? I'm wondering particularly on the Chinese smartphone OEMs have been buying quite a lot of memory through the second half of 2016. And I'm just wondering if you're seeing any double ordering, any excess inventory on the customer side, anything at all that makes you a little bit concerned of excess inventory, either on the chip side or on the finished product side, especially on the handsets?

您對客戶的庫存水準有什麼意見嗎？我特別想知道，中國智慧型手機廠商在 2016 年下半年購買的記憶體數量相當多。我只是想問您是否發現任何重複訂購的情況，客戶方面是否有任何庫存過剩的情況，或者任何讓您擔心晶片或成品（尤其是手機）庫存過剩的情況？

Not really, Mark. We've heard rumors along the lines of those that you're alluding to, I believe, but we can't validate -- I can't validate those for you. Certainly, in most market segments, it's very, very tight, and any time you have that and customers start get nervous about, are they potentially going to go line down, et cetera, you always start to be concerned that people are just trying to get a little bit ahead of it and build some inventory.

其實不是，馬克。我相信，我們也聽過一些類似你提到的那些傳聞，但我們無法證實──我無法替你證實這些傳聞。當然，在大多數市場領域，競爭都非常非常激烈，每當這種情況發生，顧客開始擔心是否會出現搶購潮等等問題時，你總是會開始擔心有人只是想搶佔先機，囤積一些庫存。

I think that's only natural. I think we're doing a pretty good job of trying to allocate this product where it's absolutely most needed, and so I don't think too many people are building up too much inventory.

我認為這很正常。我認為我們在將該產品分配到最需要的地方方面做得相當不錯，所以我認為沒有太多人囤積了過多的庫存。

Great. Thanks. And then if you think back to the previous, back in 2014, at the moment, this feels very much like 2014, pricing's strong, demand's good, supply/demand remains pretty tight. Anything different if you compare between now and then because, clearly, what happened in 2015 and 2016 wasn't quite what we were hoping for in terms of supply/demand balance and pricing.

偉大的。謝謝。如果你回想一下之前的情況，回想一下 2014 年，目前的情況感覺很像 2014 年，價格強勁，需求良好，供需仍然相當緊張。如果將現在與那時進行比較，會發現並沒有什麼不同，因為很明顯，2015 年和 2016 年在供需平衡和定價方面發生的事情並不完全符合我們的預期。

I'm just wondering if you had any comments on what is different between the previous cycle? Clearly, the industry is a lot better than the past, but the question is how much, and I'm just trying to ask if you have any particular thoughts of this time versus 2014 in particular?

我想知道您對這次週期與上次週期有何不同有什麼看法？顯然，現在的產業狀況比過去好得多，但問題是好多少呢？我只是想問您對現在的情況與 2014 年相比有什麼特別的看法嗎？

Well, I think it's -- I think that part of what happened in the last -- latter stage of the last cycle were perhaps a little bit of miscalculation by one of the suppliers. But they probably learned from. So there's that.

嗯，我認為——我認為上一輪週期後期發生的事情，部分原因可能是某個供應商的計算失誤。但他們可能從中吸取了教訓。就是這樣。

The biggest change structurally in the market, though, really is the fact that the products are going into a much broader set of end markets, much more broadly distributed now we're three or four years on from where we were in the last cycle. And I think that does make a difference. On top of that --

不過，市場結構上最大的變化實際上是，產品正在進入更廣泛的終端市場，分銷範圍也比上一個週期擴大了三、四年。我認為這確實會產生影響。除此之外——

Thanks very much.

非常感謝。

Mark, I'll add one more piece to that, which is a long-term trend that we've talked about in the past in terms of slowing technology migrations, means that competitors in the marketplace are likely doing math with numbers that are changing less rapidly than they used to be. So both from a demand and a supply perspective, as those numbers get smaller and the slope gets smaller, and the rate of change, it gets a little bit easier to do the math and to keep things in balance.

馬克，我再補充一點，這是我們過去討論過的長期趨勢，即技術遷移速度放緩，這意味著市場上的競爭對手可能正在用變化速度不如以前快的數字進行計算。因此，無論從需求或供給的角度來看，隨著這些數字變小、斜率變小、變化率降低，計算起來就容易一些，也更容易保持平衡。

And then finally, you layer on what's going on with NAND right now from a demand perspective, it's just explosive, I think, is probably the right word in terms of demand and elastic, as well. I think there's maybe some insulation there that wasn't there last time around.

最後，從需求角度來看，NAND 目前的發展動能非常迅猛，我認為用「爆發式成長」來形容需求和彈性可能比較貼切。我認為那裡可能有一些上次沒有的隔熱層。

Great. Thanks very much.

偉大的。非常感謝。

Operator, we have time for one more question.

操作員，我們還有時間再問一個問題。

Yes, sir. Our next question comes from C.J. Muse of Evercore ISI. Your question, please.

是的，先生。我們的下一個問題來自 Evercore ISI 的 C.J. Muse。請問您的問題。

Hi, this is Ada calling in for C.J. A question, another question on XPoint. Can you talk about whether you see that product impacting DRAM demand down the road?

您好，我是Ada，替C.J.打電話。我有一個關於XPoint的問題。您能否談談您認為該產品是否會對未來的DRAM需求產生影響？

A question on export? Is that what --

關於出口方面的問題？是嗎？

XPoint.

XPoint。

Oh, XPoint.

哦，XPoint。

XPoint.

XPoint。

Not early, no. The question was asked, who are we going to ship to first? We're not going to tell you who we're going to ship to first, but longer term it's storage, it's data center, and it's mobile applications, all of those. I think early on it's pure additive demand in the overall memory market. We get two or three years in and have more substantial ramp going on and cost reduction, yes, I think it will over time cannibalize part of the DRAM business.

不早。有人問，我們要先把產品出貨給誰？我們不會告訴你我們會先向哪些領域供貨，但從長遠來看，是儲存、資料中心和行動應用程序，所有這些領域。我認為早期階段，整個記憶體市場的需求純粹是增加的。兩三年後，隨著產能的大幅提升和成本的降低，我認為隨著時間的推移，它會蠶食一部分DRAM業務。

And second question, in terms of the NAND channel inventory, how's that looking right now?

第二個問題，就 NAND 頻道庫存而言，目前情況如何？

Very tight, very tight. Customers are quite concerned.

非常緊，非常緊。顧客們非常擔憂。

Thank you.

謝謝。

Thank you, everyone. This now concludes Micron Technology's first quarter 2017 financial release conference call. You may now disconnect.

謝謝大家。美光科技2017年第一季財務業績發布電話會議到此結束。您現在可以斷開連線了。