美光科技 (MU) 2017 Q2 法說會逐字稿

Good afternoon. My name is Latif and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Micron Technology second-quarter 2017 financial release conference call.

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年第二季財務業績發布電話會議。

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. (Operator Instructions). Thank you.

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。（操作說明）謝謝。

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

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, Latif, and welcome to Micron Technology's second-quarter fiscal 2017 financial conference call. On the call with me today are Mark Durcan, CEO and Director, and Ernie Maddock, Chief Financial Officer.

謝謝 Latif，歡迎參加美光科技 2017 財年第二季財務電話會議。今天和我一起通話的是執行長兼董事馬克·杜爾坎，以及財務長厄尼·馬多克。

This conference call, including audio and slides, is also being webcast from our Investor Relations website at investors. Micron.com. 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 cap call dilution table.

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上進行網路直播，網址為 investors。Micron.com。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資本期權稀釋表。

Today's call will be approximately 60 minutes in length. A webcast replay will be available on our website for one year. We encourage you to monitor our website at Micron.com through the quarter for the most current information on the Company, including information on the various financial conferences that we will be attending. You can also follow us on Twitter @MicronTech.

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。我們鼓勵您在本季度密切關注 Micron.com 網站，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 material from statements made today. We refer you to the documents the Company's files with the SEC, specifically our most recent Form 10-K and Form 10-Q, for a complete discussion of the important risk factors and other risks that may affect our future results.

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。有關可能影響我們未來業績的重要風險因素和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-K 表格和 10-Q 表格。

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. We are under no duty to update any of the forward-looking statements after today's date to conform these statements to actual results.

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。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。

I'll now turn the call over to Mark.

現在我將把電話交給馬克。

Thanks Ivan.

謝謝你，伊凡。

For fiscal Q2 2017, Micron posted total revenue of $4.65 billion with non-GAAP gross margin of 38.5% and net income of $1.03 billion, or $0.90 per share. Revenue was at the top of our guidance while gross margin, operating income, and earnings per share exceeded projections. Operating cash flow was $1.8 billion.

2017 財年第二季度，美光科技總營收為 46.5 億美元，非 GAAP 毛利率為 38.5%，淨收入為 10.3 億美元，即每股 0.90 美元。營收達到預期最高水平，毛利率、營業收入和每股盈餘均超乎預期。經營現金流為18億美元。

Last quarter, we provided detailed insight on industry pricing dynamics, explaining how the significant increases over trough pricing for PC DRAM far exceeded what we had seen in other segments, which typically react more slowly. This quarter, we saw continued gains in client DRAM pricing but also benefited from increases in mobile, cloud, and enterprise pricing as well. All of these segments showed meaningful quarter-over-quarter increases. These gains, combined with outstanding progress on cost reductions, led to a significant increase in our DRAM margins.

上個季度，我們詳細分析了行業定價動態，解釋了 PC DRAM 價格較低谷大幅上漲的幅度遠遠超過了其他細分市場，而其他細分市場的反應通常較為緩慢。本季度，我們看到客戶端 DRAM 價格持續上漲，同時也受惠於行動、雲端和企業價格的上漲。所有這些業務板塊都實現了顯著的環比增長。這些收益，加上成本降低的顯著進展，使我們的 DRAM 利潤率大幅提高。

In NAND, we were able to capitalize on an increasing percentage of low-cost 3D TLC NAND by more fully participating in the SSD market. As a result, while blended ASPs were down slightly due to a higher density product mix, our NAND margins improved substantially over last quarter.

在 NAND 領域，我們透過更充分地參與 SSD 市場，利用了低成本 3D TLC NAND 佔比不斷提高的優勢。因此，儘管由於高密度產品組合的增加，混合平均售價略有下降，但我們的 NAND 利潤率比上一季大幅提高。

As we noted in our February analyst conference, we continue to see broad industry trends placing increasing value on the memory and storage technologies we develop and the features those product -- those technologies can provide. In the most recent quarter, you can see that reflected in significant increases in cloud and enterprise businesses, both in bits shipped and value of products going to those segments, and in an ongoing preference for SSDs over HDDs in storage platforms. We'll comment more on this when we walk through the specific business details in a moment.

正如我們在二月的分析師會議上指出的那樣，我們繼續看到廣泛的行業趨勢越來越重視我們開發的記憶體和儲存技術以及這些技術所能提供的產品特性。在最近一個季度，這一點體現在雲端業務和企業業務的顯著成長上，無論是出貨量還是銷往這些領域的產品價值，以及儲存平台中對 SSD 而非 HDD 的持續偏好。稍後我們將詳細介紹具體的業務細節，屆時再對此進行更詳細的評論。

From a supply and demand perspective, we continue to be comfortable with market dynamics given the capacity plans we are aware of today.

從供需角度來看，鑑於我們目前所了解的產能計劃，我們對市場動態仍然感到滿意。

I'll now provide a high-level overview of each of the business units, and Ernie will follow on with more details on our financial performance.

接下來我將對各個業務部門進行概述，Ernie 隨後將詳細介紹我們的財務表現。

In the compute and networking business unit, we experienced continued revenue growth as a result of strength across all market segments with particular strength in cloud and enterprise. We began enablement of our 1X nanometer products and extended our lead in graphics technology with the announcement of our next generation GDDR5X product, which is the fastest discrete memory available.

在運算和網路業務部門，由於所有市場領域的強勁表現，特別是雲端運算和企業業務的強勁表現，我們實現了持續的收入成長。我們開始啟用 1X 奈米產品，並透過發布下一代 GDDR5X 產品進一步擴大了我們在圖形技術領域的領先地位，該產品是目前速度最快的獨立記憶體。

In our mobile business, as in other segments, broad market tightness has resulted in increased ASPs across all types of mobile memory. Our customers continue to be focused on increased memory and storage density for smartphones, which nicely plays to Micron strategy to focus on MCP markets. We plan to introduce more than 20 new MCP designs over the next 12 months to address the highest growth mobile applications. Customers prefer these solutions because they simplify design, validation and supply chain processes. MCPs also provide Micron with an opportunity to strengthen our relationship with key market enablers, providing a path to increased market share.

在我們的行動業務中，與其他領域一樣，市場整體緊張導致所有類型行動記憶體的平均售價上漲。我們的客戶持續專注於智慧型手機記憶體和儲存密度的提升，這與美光專注於MCP市場的策略不謀而合。我們計劃在未來 12 個月內推出 20 多款新的 MCP 設計，以滿足成長最快的行動應用程式的需求。客戶更喜歡這些解決方案，因為它們簡化了設計、驗證和供應鏈流程。MCP 也為美光提供了加強與關鍵市場推動者關係的機會，從而為提高市場份額提供了途徑。

Our embedded business grew revenues this quarter through increased DRAM shipments in automotive as well as consumer and connected home applications, and we achieved record automotive revenues for the fourth quarter in a row. Increased NAND shipments to industrial multi-market customers helped offset this quarter's anticipated decline in NOR shipments to Japanese gaming applications.

本季度，我們的嵌入式業務收入成長，這得益於汽車、消費電子和智慧家居應用領域 DRAM 出貨量的增加，並且我們連續第四個季度實現了創紀錄的汽車業務收入。工業多市場客戶的 NAND 出貨量增加，有助於抵消本季日本遊戲應用 NOR 出貨量預期下降的影響。

Design and activity continues to be strong for our 20 nanometer DDR and LP DDR products in automotive, consumer, connected home, and Internet of Things gateway applications. In addition, design-in activity for our latest generation of automotive grade managed NAND continues to increase with new design wins up significantly over the prior quarter.

我們的 20 奈米 DDR 和 LP DDR 產品在汽車、消費性電子、智慧家庭和物聯網閘道應用領域的設計和業務活動仍然強勁。此外，我們最新一代汽車級管理型 NAND 的設計導入活動持續增加，新設計訂單數量較上一季大幅成長。

Our storage business performance this quarter was driven by continued shift to cost-effective 3D NAND TLC products, and increased traction for our SSD portfolio across the OEM cloud and enterprise markets. Wins with OEM customers enabled a record number of SSD shipments during the quarter.

本季度，我們的儲存業務表現得益於持續向高性價比的 3D NAND TLC 產品轉型，以及我們的 SSD 產品組合在 OEM 雲端和企業市場日益增長的市場需求。與 OEM 客戶的成功合作使得本季 SSD 出貨量創下歷史新高。

Customer focus on larger capacity and tailored storage solutions led to a dramatic growth in our enterprise and cloud segments, which were our fastest-growing part of our SSD portfolio. The trend toward tailored solution drives greater opportunities for Micron to engage end customers on future IT investment planning. As we pursue these opportunities, our flexible, feature-oriented portfolio has been well received by our customers.

客戶對更大容量和客製化儲存解決方案的關注，促使我們的企業和雲端業務部門實現了顯著成長，這些部門也是我們 SSD 產品組合中成長最快的部分。客製化解決方案的趨勢為美光公司提供了更多機會，使其能夠與最終客戶共同參與未來的 IT 投資規劃。在追求這些機會的過程中，我們靈活且以功能為導向的產品組合受到了客戶的好評。

The storage market has broadly adopted 3D TLC products, and we are well-positioned to take advantage of this trend. We are seeing the ongoing demand for high-performance, reliable, power efficient storage driving greater SSD adoption across multiple markets. We anticipate to grow our overall storage bit output as our Fab 10X expansion continues to ramp.

儲存市場已廣泛採用 3D TLC 產品，我們已做好充分準備，利用這一趨勢。我們看到，對高效能、可靠、節能儲存的持續需求正在推動固態硬碟在多個市場中得到更廣泛的應用。隨著 Fab 10X 工廠的持續擴建，我們預計整體儲存位元產量將會增加。

Our technology transitions are on track, and will continue to provide benefit to the Company over the next several quarters. We are driving deployment of 1X DRAM with meaningful output expected by the end of the fiscal year. We expect 1X nanometer DRAM to build on our success with 20 nanometer DRAM, which is deployed throughout our portfolio and rated number one in quality by multiple enterprise OEM customers.

我們的技術轉型進展順利，並將在未來幾季繼續為公司帶來效益。我們正在大力推進 1X DRAM 的部署，預計到本財年末將有顯著成效。我們期望 1X 奈米 DRAM 能夠延續我們在 20 奈米 DRAM 上的成功，20 奈米 DRAM 已部署在我們的產品組合中，並被多家企業 OEM 客戶評為品質第一。

Likewise, we are aggressively proliferating 32 layer 3D NAND through our product lines while also driving the deployment of 64 layer 3D NAND with meaningful output expected by the end of the fiscal year. Micron's unique integration of CMOS circuitry under the array will enable the industry's smallest die size on our 64 layer designs.

同樣，我們正在透過我們的產品線積極推廣 32 層 3D NAND，同時也在推動 64 層 3D NAND 的部署，預計到本財年末將取得顯著成果。美光將 CMOS 電路獨特地整合到陣列下方，這將使我們的 64 層設計實現業界最小的晶片尺寸。

As we look toward the end of our fiscal year, we are currently on track to have more than 75% of our NAND bits on 3D. Of course, certain segments require legacy NAND technologies and will transition much more slowly, embedded markets for example.

展望本財年即將結束，我們目前預計將實現超過 75% 的 NAND 位元採用 3D 儲存。當然，某些領域需要傳統的 NAND 技術，轉型速度會慢得多，例如嵌入式市場。

As we previewed for you at our analyst day, we believe our NAND bit growth in fiscal 2018 will approximate the aggregate market growth. This will take 3D NAND to 90% of our total bit output for fiscal 2018.

正如我們在分析師日上向您預告的那樣，我們相信我們在 2018 財年的 NAND 位成長將與整體市場成長大致相當。這將使 2018 財年 3D NAND 的位元產量占我們總比特產量的 90%。

We continue to work on developing new memory technologies and are enabling our 3D XPoint technology. We will be shipping 3D XPoint memory for revenue later in 2017. We believe these innovative solutions offer unique value to enterprise customers and will be an important contributor to Micron's future success.

我們將繼續致力於開發新的儲存技術，並啟用我們的 3D XPoint 技術。我們將於 2017 年稍後開始出貨 3D XPoint 記憶體以實現盈利。我們相信這些創新解決方案能為企業客戶帶來獨特的價值，並將成為美光未來成功的重要貢獻者。

Now, I'll turn it over to Ernie.

現在，我把麥克風交給厄尼。

Thank you Mark. The business environments in fiscal Q2 continued to be positive with our results favorably impacted by product mix, progress on our cost improvement, and the sustained positive pricing environment.

謝謝你，馬克。第二財季的商業環境仍然良好，產品組合、成本改善進展以及持續的積極定價環境對我們的業績產生了積極影響。

I'll begin my remarks today with an overview of the fiscal Q2 results by technology and business unit followed by our corporate financial performance and guidance for fiscal Q3.

今天，我將首先概述第二財季各技術和業務部門的業績，然後介紹公司財務表現和第三財季的業績指引。

DRAM represented 64% of our total revenue with the following segmentation: mobile was in the high 20% range; PC represented 25%; server also represented 25%, up from the high teens of the prior quarter; and specialty DRAM, which includes networking, graphics, auto, and other embedded technologies, was in the low 20% range.

DRAM 占我們總收入的 64%，具體細分如下：行動裝置佔比接近 20%；PC 佔比 25%；伺服器也佔 25%，比上一季接近 10% 的比例有所上升；而包括網路、圖形、汽車和其他嵌入式技術在內的專用 DRAM 則佔比在 20% 左右。

In our nonvolatile memory business, trade NAND represented 30% of our revenue with the following segmentation: consumer, which includes memory cards, USB and components, represented approximately 40%; mobile represented 20%; and as a reminder, EMCPs are primarily in the mobile segment. SSDs were in the mid-20% range, up from the mid-teens percent last quarter. And the automotive, industrial multi-market, and other embedded applications were in the high teens percent range.

在我們的非揮發性記憶體業務中，貿易 NAND 占我們營收的 30%，具體細分如下：消費品（包括記憶卡、USB 和元件）約佔 40%；行動產品佔 20%；需要提醒的是，EMCP 主要屬於行動領域。SSD 的使用率在 20% 左右，高於上季的 15% 左右。汽車、工業多市場和其他嵌入式應用領域的佔比均在 10% 以上。

Turning to performance by business unit, the compute and networking business units reported fiscal Q2 revenue of $1.92 billion, up 30% sequentially due to firm demand in a robust pricing environment. Non-GAAP operating income was $736 million, or 36% of revenue, up from 14% the prior quarter, enhanced by the pricing environment and better performance on costs.

從業務部門的業績來看，計算和網路業務部門報告稱，第二財季收入為 19.2 億美元，環比增長 30%，這得益於強勁的定價環境下的穩定需求。非GAAP營業收入為7.36億美元，佔營收的36%，高於上一季的14%，這得益於定價環境和成本控制的改善。

We saw good growth in the cloud and enterprise segments driven by shipments of our first generation 20 nanometer DDR4 products. Additionally, we are beginning shipments of our second generation product optimized for the industry's newest service -- server platform. Graphics saw modest revenue growth despite what is traditionally a seasonally weak period, and we began shipments of our next generation G5X to Nvidia for the new GeForce 1080Ti, further solidifying Micron's technology leadership in the high-performance graphics memory segment.

受第一代 20 奈米 DDR4 產品出貨量的推動，我們在雲端和企業領域實現了良好的成長。此外，我們已開始交付第二代產品，該產品針對業內最新服務—伺服器平台進行了最佳化。儘管正值傳統淡季，圖形業務的收入仍實現了溫和成長。我們開始向英偉達交付用於新款 GeForce 1080Ti 的下一代 G5X，進一步鞏固了美光在高效能圖形記憶體領域的技術領先地位。

Networking saw increased shipments and revenue driven by the continued growth of 20 nanometer 4 gigabit DDR3 and 8 gigabit DDR4 products at key OEMs, especially in Asia, and client revenue growth was primarily driven by the continued strong pricing environment.

網路業務的出貨量和收入成長主要得益於主要 OEM 廠商（尤其是亞洲廠商）20 納米 4 千兆 DDR3 和 8 千兆 DDR4 產品的持續成長，而客戶收入成長主要得益於持續強勁的價格環境。

The mobile business unit delivered fiscal Q2 revenue of $1.08 billion, up 5% sequentially, driven by a stronger pricing environment. Non-GAAP operating income was $170 million, or 16% of revenue, as pricing strength combined with improved costs.

行動事業部門第二財季營收達 10.8 億美元，較上季成長 5%，主要得益於更強勁的定價環境。非GAAP營業收入為1.7億美元，佔營收的16%，這得益於定價優勢和成本改善。

The embedded business unit delivered fiscal Q2 revenue of $590 million, up 2% sequentially. Non-GAAP operating income was $193 million, or 33% of revenue. The results were primarily driven by increased automotive unit shipments and increased average selling prices of DDR3 and NAND on a like-for-like basis in our consumer and connected home segments.

嵌入式業務部門第二財季營收達 5.9 億美元，季增 2%。非GAAP營業收入為1.93億美元，佔營收的33%。業績成長主要得益於汽車出貨量增加，以及在消費品和智慧家庭領域，DDR3 和 NAND 的平均售價以同類產品計算有所提高。

The storage business delivered fiscal Q2 revenue of $1.04 billion, up 21% sequentially. Non-GAAP operating income was $71 million, or 7% of revenue. The results were primarily driven by strong growth in client and cloud SSD shipments and lower costs. Our 5100 cloud drive, which was introduced in December, continues to be well received and is in the process of additional calls on a large number of customer platforms.

儲存業務第二財季營收達 10.4 億美元，季增 21%。非GAAP營業收入為7,100萬美元，佔營收的7%。業績成長主要得益於客戶端和雲端 SSD 出貨量的強勁成長以及成本的降低。我們於 12 月推出的 5100 雲端碟持續受到好評，目前正在大量客戶平台上進行更多部署。

Moving on to overall Company results, revenue for the fiscal second quarter was $4.65 billion, up 17% sequentially and driven primarily by DRAM pricing strength and increased NAND volume shipments in a stable to rising pricing environment.

接下來看公司整體業績，第二財季營收為 46.5 億美元，季增 17%，主要得益於 DRAM 價格走強以及在價格穩定上漲的環境下 NAND 出貨量增加。

Non-GAAP gross margin for the quarter was 38.5%, up from 26% in the prior quarter, driven by product mix, cost reductions, and the strong pricing environment. Non-GAAP net income was $1.03 billion, or $0.90 per share.

本季非GAAP毛利率為38.5%，高於上一季的26%，這主要得益於產品組合、成本降低以及強勁的定價環境。非GAAP淨利為10.3億美元，即每股0.90美元。

Turning to results by product line, DRAM revenue increased 22% compared to the prior quarter as the result of a 1% increase in bit shipments and a 21% increase in ASPs. DRAM gross margins for the second quarter increased 16 percentage points sequentially to 44% driven primarily by the strong pricing environment and cost declines. As we look at the next couple of quarters, we expect that second-half fiscal year 2017 bits out will exceed first-half fiscal year 2017 bits out by about 10%.

以產品線來看，DRAM 營收較上一季成長 22%，這得益於比特出貨量成長 1% 和平均售價成長 21%。受強勁的價格環境和成本下降的推動，第二季DRAM毛利率較上季成長16個百分點至44%。展望未來幾個季度，我們預計 2017 財年下半年的比特輸出量將比 2017 財年上半年的比特輸出量高出約 10%。

Our nonvolatile trade revenue, NAND revenue, increased 11% compared to the prior quarter, reflecting an 18% increase in bit shipments. ASPs were down 6% from the prior quarter on a blended basis, primarily as a result of a higher density product mix. Gross margin increased 8 percentage points sequentially to 31% as cost per bit was down 15%. We are seeing like-for-like price increases across nearly all segments and, looking forward, we expect that second-half fiscal year 2017 bits out will exceed first-half fiscal year 2017 bits out by about 30%, occurring primarily in FQ3. Non-GAAP operating expenses for the quarter were $612 million, at the midpoint of the guidance range.

我們的非波動性貿易收入（NAND 收入）比上一季成長了 11%，反映出比特出貨量成長了 18%。平均售價較上一季下降 6%，主要原因是產品組合密度較高。由於每比特成本下降了 15%，毛利率較上季增加 8 個百分點至 31%。我們看到幾乎所有細分市場都出現了同類產品價格上漲，展望未來，我們預計 2017 財年下半年的出貨量將比 2017 財年上半年的出貨量高出約 30%，主要發生在第三財季。本季非GAAP營運費用為6.12億美元，處於預期範圍的中點。

The Company generated operating cash flow of $1.77 billion, representing an increase of $628 million over last quarter.

公司經營活動產生的現金流為 17.7 億美元，比上一季增加了 6.28 億美元。

To conform to GAAP reporting relative to the Inotera acquisition, we reflected approximately $350 million of the Inotera purchase price as a reduction to operating cash flows. As a result, our financial statements reflect operating cash flow of $1.41 billion.

為了符合 GAAP 關於 Inotera 收購的報告規定，我們將 Inotera 收購價格的約 3.5 億美元計入經營現金流的減少額。因此，我們的財務報表反映經營現金流為 14.1 億美元。

We ended the quarter with cash, marketable investments and restricted cash of approximately $4.6 billion. In the second fiscal quarter, capital expenditures net of partner contributions were approximately $1.2 billion.

本季末，我們持有的現金、有價投資和受限現金約為 46 億美元。第二財季，扣除合夥人出資後的資本支出淨額約 12 億美元。

Moving now to our guidance for the third quarter, on a non-GAAP basis, we expect the following: revenue in the range of $5.2 billion to $5.6 billion; gross margin in the range of 44% to 48%; operating expenses between $560 million and $610 million; operating income ranging between $1.8 billion and $2 billion; and EPS ranging between $1.43 and $1.57 per share based on 1.155 billion diluted shares.

現在來看看我們對第三季的業績指引，以非GAAP準則計算，我們預期：營收在52億美元至56億美元之間；毛利率在44%至48%之間；營運支出在5.6億美元至6.1億美元之間；營運收入介於18億美元至20億美元之間；每股盈餘在1.43美元至1.57美元之間（基於1.575億美元）。

In closing, we remain focused on achieving the technology transition and cost reduction targets we outlined at our analyst day. Currently, we are tracking to deliver free cash flow in excess of the $1.5 billion we shared with you at that event and continue to view delevering as an important priority.

最後，我們將繼續專注於實現我們在分析師日上提出的技術轉型和成本降低目標。目前，我們正朝著實現超過我們在上次活動中與大家分享的 15 億美元的自由現金流目標穩步前進，並將繼續把去槓桿化視為一項重要的優先事項。

With that, I'll turn it back over to Mark.

這樣，我就把麥克風交還給馬克了。

Thanks Ernie.

謝謝你，厄尼。

In summary, we are heading into the third quarter with a strong market environment and steady progress on our technology initiatives. I'm preleased with our execution, and we continue to press forward together on technology, operational, and product enablement targets. Our continued progress towards these goals will enable us -- will enable further cost reductions and the opportunity to address higher value-added market segments.

總而言之，我們帶著強勁的市場環境和穩步推進的技術計劃進入第三季。我對我們的執行情況感到滿意，我們將繼續共同努力，推動技術、營運和產品賦能目標的實現。我們持續朝著這些目標取得進展，將使我們能夠進一步降低成本，並有機會開拓更高附加價值的市場領域。

Looking to the market as a whole, we see increasing customer interest in Micron playing a more collaborative role in solving design challenges and plan to use this environment to strengthen our relationships with industry partners and customers.

從整個市場來看，我們看到客戶對美光在解決設計挑戰方面發揮更協作的作用越來越感興趣，並計劃利用這種環境來加強我們與行業合作夥伴和客戶的關係。

As you all know, at our analyst conference in February, I announced my retirement. While the board and I work to identify my successor, I remain fully committed and engaged in leading Micron through this exciting and dynamic period. We will provide further updates on our CEO search as appropriate.

如大家所知，在二月的分析師大會上，我宣布了退休計畫。在我和董事會努力尋找我的繼任者的同時，我將繼續全力以赴，帶領美光度過這段激動人心、充滿活力的時期。我們將根據情況提供關於執行長遴選工作的最新進展。

Operator, we are now ready to begin Q&A.

操作員，我們現在可以開始問答環節了。

(Operator Instructions). Harlan Sur, JPMorgan.

（操作說明）哈蘭‧蘇爾，摩根大通。

Thank you for taking my question, and congratulations on the solid quarterly execution and strong outlook.

感謝您回答我的問題，並祝賀貴公司本季業績穩健，前景樂觀。

Despite the very optimistic and positive pricing environment, there's been some growing concern around the notion of demand destruction given the strong pricing environment and availability of both DRAM and NAND to a point where I think there is a view forming that there's potential for PC and server destocking on the DRAM side, less DRAM per box, on the mobile side, less DRAM per smartphone and on the NAND side, less uptake of SSDs and more uptake of HDDs. I guess the question is do you see this happening, and how does it impact the dynamics of the supply-demand environment going forward?

儘管價格環境非常樂觀積極，但鑑於強勁的價格環境和DRAM和NAND的供應，人們越來越擔心需求會受到抑制。我認為，目前有一種觀點認為，PC和伺服器在DRAM方面可能會減少庫存，每台設備使用的DRAM數量會減少；在行動裝置方面，每部智慧型手機使用的DRAM數量會減少；在NAND方面，固態硬碟的銷售量可能會下降，而機械硬碟的銷售量可能會上升。我想問的是，您是否認為這種情況會發生，以及它將如何影響未來供需環境的動態變化？

This is Mark. To date, we've seen no indication of that at all really in any segment. It's true that, in cycles, from time to time, that does happen late in a cycle, but, today, we see continued strong bit growth across almost every end market segment and no real indication of that occurring anywhere, in particular not in specialty, not in mobile, certainly not in the enterprise and server area.

這是馬克。到目前為止，我們在任何領域都沒有看到任何這方面的跡象。誠然，在某些週期中，這種情況偶爾會在週期的後期發生，但如今，我們看到幾乎所有終端市場細分領域都持續強勁增長，而且沒有任何跡象表明這種情況會在任何地方發生，尤其是在專業領域、行動領域，當然在企業和伺服器領域。

Great, thank you for that. And then solid results in the NAND business with your margins up I think it's 800 basis points in the quarter. As we think about the cost curve on a go-forward basis and the ramp of your 64 layer 3D, can you just give us an idea on how your yields and performance of the products are doing either relative to your internal targets or relative to the same time last year in the ramp of your 32 layer products?

太好了，謝謝你。然後，NAND業務取得了穩健的業績，利潤率也提高了，我認為本季提高了800個基點。考慮到未來的成本曲線以及您的 64 層 3D 產品產能爬坡，您能否簡要介紹一下您的產品良率和性能與內部目標的對比情況，或者與去年同期 32 層產品產能爬坡的情況對比情況？

This is Mark. A year ago, Harlan, I can't catch that I even recall where we were on 3D NAND yields, but I will tell you we are very happy with where they are for 32 layer MLC and TLC. And again, TLC is the big piece of that. We are where we thought we ought to be and at very mature yields. 64 layer, as we talked about, is a material piece of our bid output late in the year, and we are very happy with the progress we are making there and the yields we are seeing on that technology as well.

這是馬克。哈蘭，一年前，我甚至記不清我們在 3D NAND 良率方面的情況了，但我可以告訴你，我們對 32 層 MLC 和 TLC 的良率現狀非常滿意。再說一遍，TLC是其中最重要的組成部分。我們現在所處的位置正是我們預期的，產量也非常成熟。正如我們之前討論過的，64 層是今年稍後我們投標產品的重要組成部分，我們對該技術的進展和產量都非常滿意。

Great. Thank you.

偉大的。謝謝。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

Thanks. Good afternoon. Just two questions from me. First of all, if you could talk a little bit more color around this -- I believe you talked about bit growth of about 30% half-over-half. Maybe qualify or quantify as much as you want to the growth drivers, how much from SSDs versus mobile, etc.

謝謝。午安.我只有兩個問題。首先，如果您能再詳細談談這方面的情況——我相信您提到過，上半年比特成長率約為 30%。您可以根據需要對成長驅動因素進行定性或量化，例如 SSD 帶來的成長與行動裝置帶來的成長等等。

And then secondly, can you talk a little bit about the auto growth in the quarter and what's driving that and how that looks into the second half as well and what's the key contributors there? Thank you.

其次，您能否談談本季汽車產業的成長情況，以及推動成長的因素，並分析下半年的成長前景以及主要貢獻因素？謝謝。

Sure. So relative to bit growth with NAND, that was more statement around what our output profile is going to look like. And of course, we will deploy that output to the end markets that we feel will provide the best opportunity for the Company here as we see the back half of the year unfold.

當然。因此，相對於 NAND 的位元成長而言，這更多是關於我們的輸出概況的說明。當然，隨著下半年的發展，我們將把這些產品推向我們認為能為公司帶來最佳機會的終端市場。

Relative to automotive, it's very similar to what we've been consistently talking about -- driver assist systems, infotainment, a lot of what is required as we move up that autonomous driving food chain, and as what are today considered to be advanced features in automotive, the automotive business penetrates mid and lower end cars. So that -- there's nothing particularly unique about what continues to drive that. It's the same unfolding story relative to memory deployment in the automotive sector.

就汽車而言，它與我們一直在談論的內容非常相似——駕駛輔助系統、資訊娛樂系統，以及我們在自動駕駛領域不斷進步所需的許多功能，這些如今被認為是汽車領域的高級功能，汽車行業滲透到中低端汽車市場。所以——驅動這種情況持續下去的因素並沒有什麼特別獨特之處。汽車產業記憶體部署的情況也類似。

I think, if the question is do we participate in all of the various pieces of automotive end demand, the answer is yes. We are in the drivetrain. We are in the ADAS systems. We are in the infotainment systems and continue to maintain strong market share in all those pieces.

我認為，如果問題是“我們是否參與了汽車終端需求的各個環節”，那麼答案是肯定的。我們現在在傳動系統中。我們身處ADAS系統中。我們在車載資訊娛樂系統領域，並在所有相關產品中都保持著強大的市場份額。

Thanks very much for that. Just real quick on the first comments, on the -- just as it applies to cloud SSDs, your own cloud SSDs that you're launching, can you give a little more color on how broadly we should see those deployed maybe during the fall of this year?

非常感謝。關於第一個評論，我只想快速回答一下——就像它適用於雲端 SSD 一樣，關於你們即將推出的雲端 SSD，你們能否更詳細地說明一下，我們應該在今年秋季看到這些產品得到多廣泛的部署？

Yes. I think you're going to see them very broadly deployed. As we noted, the initial uptakes of that SSD was announced in the early part of December of last year. The uptake has been very strong, and we continue to see that growing at a significant rate here as we progress through the calendar year, along with some new features. We have a 5100 SATA drive with PCIE and NVMe coming soon as well, so we think that will help with the proliferation and the expansion of the demand.

是的。我認為你會看到它們被非常廣泛地部署。正如我們所指出的，該 SSD 的初步採用情況是在去年 12 月初宣布的。用戶的接受度非常高，而且隨著時間的推移，用戶接受度將繼續以顯著的速度成長，同時我們也推出了一些新功能。我們即將推出一款支援PCIE和NVMe的5100 SATA硬碟，因此我們認為這將有助於滿足市場需求並促進其普及。

Great. Thank you very much.

偉大的。非常感謝。

Timothy Arcuri, Cowen.

提摩西·阿庫裡，考恩。

Thank you very much. I guess, Mark, I'm just looking at the guidance, and you guys are guiding to a quarterly earnings number that's like 50% higher than you guys did in the last cycle, yet your stock is still $5.00 below where it peaked last time. And I know there are some changes in the cap structure and whatnot. But I guess the question really is what's the concern you hear from investors when you've been out there on the conference circuit this quarter? Are people worried about the sustainability of the cycle, and like what is the big concern from your point of you and is that valid?

非常感謝。馬克，我看了下你們的業績指引，你們預計本季獲利將比上一季成長約 50%，但你們的股價仍然比上次的高峰低 5 美元。我知道資本結構等方面會有一些變化。但我認為真正的問題是，本季你參加各種會議時，從投資人那裡聽到的擔憂是什麼？人們是否擔心循環的可持續性？從你的角度來看，最大的擔憂是什麼？這種擔憂是否合理？

It's a good question. I think people are looking at the cycle and wondering are we getting long in the tooth, etc.? We start to read stuff about that. We are not seeing that at all. As mentioned, we are not seeing -- really what's driving this cycle when you think about it is broad-based demand across multiple market segments, and in particular it's content growth in all of those segments as opposed to particularly strong unit growth in one segment or the other. And so as we look at the market today, it looks very robust from an end market demand, and maybe much broader and less unit-driven than we've seen in the past.

這是個好問題。我認為人們正在觀察這個週期，並思考我們是否已經步入老年等等？我們開始閱讀相關資料。我們完全沒有看到這種情況。正如前面提到的，我們並沒有看到——仔細想想，真正推動這一周期發展的是多個細分市場的廣泛需求，尤其是所有這些細分市場的內容增長，而不是某個細分市場或另一個細分市場的特別強勁的銷量增長。因此，從目前的市場來看，終端市場需求非常強勁，而且可能比我們過去看到的市場更加廣泛，更少受銷售驅動。

We also see that the supply, as best we can tell, seems in control relative to demand. And I think, if you think about this cycle versus last cycle, what you saw -- what you saw last cycle was a big chunk of supply come off with the Hynix fire and the reaction with more supply to replace it, and so maybe a little less stability than we're seeing this time around. So that's all on the DRAM side.

我們也看到，就我們目前所見，供應似乎相對於需求而言處於控制地位。我認為，如果你把這個週期和上一個週期比較一下，你會發現上一個週期由於海力士火災導致大量供應減少，為了彌補損失，市場需要增加供應來填補空缺，因此可能不如我們這次看到的那麼穩定。以上就是DRAM方面的全部內容。

On the NAND side, this HDD replacement cycle is big. We are well into it in client. It's not going to stop in the cloud and enterprise. Mobile storage demand continues to accelerate. And so, again, it's broad-based content growth in all of those end applications, and it's supply on the NAND side that's relatively capital-intensive to put in place with complex technology. And so there, again, that all seems like it's in pretty good shape.

從 NAND 快閃記憶體的角度來看，這次硬碟更換週期非常大。我們已經深入客戶內部了。這不會止步於雲端和企業級應用程式。行動儲存需求持續加速成長。因此，所有這些終端應用都實現了廣泛的內容成長，而 NAND 方面的供應則需要相對大量的資本投入，並採用複雜的技術。所以，總的來說，一切似乎都很順利。

Okay. I guess just to follow onto that, so it looks like, based upon the guidance, that the gross margin in DRAM is going to be in excess of 50%. Usually, that doesn't last very long, and people are obviously worried about Samsung adding a bunch of wafers. Why would that not happen this time? Based upon what you know, why would that not happen? And sort of what's your -- obviously, they have to add some wafers. But what's your base assumption for what the competition will do sort of in terms of bit growth this year? Thanks.

好的。我想接著說，根據指導意見來看，DRAM 的毛利率似乎將超過 50%。通常情況下，這種情況不會持續太久，人們顯然擔心三星會增加大量的晶圓。為什麼這次就不會這樣了？根據你所了解的情況，為什麼這種情況不會發生呢？而且，很明顯，他們還需要添加一些晶片。但你對今年競爭對手在比特成長的表現有何基本假設？謝謝。

Again, I think the last cycle was a little different with that instability in supply created by the Hynix fire. I don't know why they would intentionally repeat the mistake from last cycle. They probably are enjoying making good margins. And our view is we just go out and we look at what information is available relative to all the various additions people are making and might be making and what the timeframe that might occur in, and then we give you -- you know, what we think that bit growth looks like. And that looks like it's probably actually -- Samsung is actually probably on the low end over the next couple of years relative to what's going on in the industry as a whole. And the industry as a whole is probably a little bit south of where we think demand growth is. So, could it happen? Yes. Why would it happen? I can't forecast that for you.

我認為上一個週期由於海力士火災造成的供應不穩定而略有不同。我不明白他們為什麼會故意重蹈上一輪的覆轍。他們可能很享受獲得豐厚利潤的過程。我們的觀點是，我們出去看看與人們正在做和可能做的各種新增業務相關的可用信息，以及這些業務可能在多長時間內發生，然後我們會告訴你——你知道，我們認為這種增長會是什麼樣子。而且看起來，未來幾年三星的股價可能實際上會低於整個產業的股價。整個產業的成長可能略低於我們預期的需求成長水準。那麼，這有可能發生嗎？是的。為什麼會發生這種情況？我無法為你預測。

This is Ernie. I think the important thing to bear in mind is, in the estimates that we've provided for supply growth this year of 15% to 20%, you would have to add some wafers to get into that range. Absent those wafer additions, you would be below the low end of that range, based on everything that we know. So, it is not a surprise that wafers are being added, given the forecast that we believe exists from the supply side.

這是厄尼。我認為需要記住的重要一點是，在我們今年對供應成長15%到20%的估計中，你需要增加一些晶圓​​才能達到這個範圍。如果不增加這些晶圓，根據我們目前所知的一切，你的價格將低於該範圍的下限。因此，考慮到我們對供應方面的預測，晶圓產量增加也就不足為奇了。

And again, the other thing to keep in mind here is there are some natural impediments. The technology is getting more expensive to deploy. It's getting more difficult. And as we look to the future, we do see trends towards new technologies that might come into place out in time, and that may be somewhat of an impediment to people as they think about do I really want to add incremental, significant new wafers to use supply when there may be competing technologies coming.

此外，還需要記住一點，這裡存在一些自然障礙。這項技術的部署成本越來越高。情況越來越難了。展望未來，我們確實看到了新技術的發展趨勢，這些技術可能會在未來的某個時候出現，這可能會在某種程度上阻礙人們思考是否真的要在可能出現競爭技術的情況下增加增量、大量的新晶圓來利用供應。

Agreed, guys. Thank you.

同意，各位。謝謝。

Chris Danely, Citi.

克里斯·丹尼利，花旗銀行。

I didn't know I went from Jewish to Italian. Anyway, congrats. It feels like we have stepped into a time machine and got off in 1995.

我不知道自己從猶太人變成了義大利人。總之，恭喜你。感覺就像我們坐上了時光機，回到了1995年。

Can you just go through your price assumptions for the gross margin guide, and then also maybe list the gross margin drivers in order of importance for beyond the May quarter?

能否詳細說明一下毛利率指引中的價格假設，然後列出五月季度之後影響毛利率的因素，並依重要性排序？

This is Ernie. You and I have been around each other long enough to know you're not going to get an answer to your first question. We don't give underlying pricing assumptions to derive our gross margin guidance. Our gross margin guidance stands on its own for what it is.

這是厄尼。你我相識已久，應該很清楚你的第一個問題不會得到答案。我們不提供推導毛利率預期所依據的潛在定價假設。我們的毛利率預期本身就具有參考價值。

Relative -- can you repeat the second piece, half, of your question please?

親戚－請您重複一下您問題的後半部好嗎？

Sure, just list the gross margin drivers in order of importance for wait for beyond the make order?

當然可以，只需按重要性順序列出毛利​​率驅動因素，以便等待訂單完成後再做決定即可？

Yes. So, to do that would be predicting a pricing curve, which I also think is troublesome business. As we've talked about, right now, the pricing curve is much flatter than you typically see it, and the normal sort of rules of thumb as you look at segments continue to be a little bit inverted as we experience this environment that we are in.

是的。因此，這樣做就等於預測價格曲線，我認為這也是件麻煩事。正如我們之前討論過的，目前的價格曲線比通常情況下要平緩得多，而且在我們目前所處的這種環境下，通常的細分市場經驗法則也略有顛倒。

So, we have -- we never predict that things go up and to the right for an infinite period of time. You would expect that we would be thinking cautiously as we do our internal business planning, which we do. We do apply a very consistent methodology to how we look at things, but we aren't in a position to tell you when we think that the pricing curve would return to any sort of more normalized perspective that we would have from historical reference.

所以，我們——我們永遠不會預測事物會無限期地向上向右發展。你可能會認為我們在進行內部業務規劃時會謹慎思考，而我們也確實如此。我們確實採用了一套非常一致的方法論來看待事物，但我們無法告訴您，我們認為價格曲線何時會回歸到我們從歷史參考中看到的某種更正常的視角。

That's fine. Since I whiffed on my first question, maybe you'll allow me another follow-up. You talked about delevering now that cash flow is pretty good. Maybe give us any insight into what would be or what would trigger you to start raising capital or restructure the debt? What would be the options out there?

沒關係。既然我第一個問題沒問準，或許您可以允許我再問一個後續問題。你剛才提到，現在現金流狀況良好，可以考慮去槓桿化。能否請您透露一下，什麼情況下您會開始籌措資金或重整債務？有哪些選擇？

I think we are pretty consistent with what we said at our analyst day. We talked about 50% to 75% of a $1.5 billion number. We are on track for that. We'll do that at a time and a pace of our choosing based upon a wide variety of business circumstances, but we do, as I said in my script, remain committed to this and think that it's an important priority for us.

我認為我們目前的說法與我們在分析師日上所說的基本一致。我們討論的是15億美元這個數字的50%到75%。我們正朝著這個目標穩步前進。我們將根據各種商業情況，選擇合適的時間和節奏來完成這項工作，但正如我在稿子中所說，我們仍然致力於此，並認為這是我們的一項重要優先事項。

Great. Thanks guys.

偉大的。謝謝各位。

Mark Delaney, Goldman Sachs.

馬克‧德萊尼，高盛集團。

Good afternoon. Congratulations on the good results and thanks for taking the questions.

午安.恭喜你取得好成績，感謝你回答問題。

The first question was a follow-up on just the broader pricing environment. I'm not looking for any absolute number, but just hoping you could help us understand if the contract prices that Micron has seen are still below spot prices. Obviously spot prices rallied pretty significantly, but there's some time maybe before contract can catch up. And just, with what you're guiding at, do you think contract pricing is still below spot in your assumptions?

第一個問題是針對更廣泛的定價環境的後續問題。我並不需要具體的數字，只是希望您能幫助我們了解美光目前看到的合約價格是否仍低於現貨價格。現貨價格顯然大幅上漲，但合約價格可能還需要一段時間才能跟上。那麼，按照您目前的指導意見，您認為合約價格是否仍然低於您假設的現貨價格？

Certainly, that's the case today. And don't forget we've also talked in the past about how some of our other segments have contracts of longer duration, so you would get the impact of a renewal of those contracts and, generally speaking, that those renewal -- that renewal pricing environment would continue to be favorable as well.

現在的情況的確如此。別忘了我們過去也討論過，我們其他一些業務部門的合約期限更長，因此你會感受到這些合約續約的影響，而且一般來說，這些續約的定價環境也將繼續保持有利。

That's helpful. And then for a follow-up question, I know the Company talked a bit in the prepared remarks about certain mix shifts that it has been executing on, doing more in areas like SSDs, and moving more towards server DRAM and creation. I was hoping you could help us understand how much more you think you can achieve in those areas through the rest of this fiscal year.

那很有幫助。然後，對於後續問題，我知道該公司在準備好的發言稿中談到了一些它一直在執行的某些組合調整，例如在 SSD 等領域投入更多精力，以及更多地轉向伺服器 DRAM 和創新。我希望您能幫助我們了解，在本財年剩餘的時間裡，您認為在這些領域還能達到多大的成就。

Sure. So, on the SSD side of the house, as we mentioned I think in response to an earlier question, we think we are at the early days of what we're seeing in terms of penetration on our cloud and enterprise SSDs. I think we do have fairly good momentum and traction in clients in OEM. So that is how we are looking at or thinking about what the opportunities are on the SSD side of the house.

當然。所以，在 SSD 方面，正如我們之前在回答一個問題時提到的那樣，我們認為，就我們在雲端和企業級 SSD 的滲透率而言，我們還處於早期階段。我認為我們在OEM客戶方面確實擁有相當不錯的勢頭和市場認可。所以這就是我們看待或思考 SSD 方面有哪些機會的方式。

And then you also saw an increase in the percentage of the DRAM output that went into the server and cloud segment, and we see those continuing to increase here, or the demand side of it continuing to increase here, with all of the new data center deployments and a pretty strong demand environment for those.

此外，我們還看到，用於伺服器和雲端領域的 DRAM 輸出百分比有所增加，而且隨著所有新的資料中心部署和對它們的強勁需求環境，我們看到這些百分比還在繼續增加，或者說，對它們的需求方面也在繼續增加。

Thank you.

謝謝。

Tristan Gerra, Baird.

特里斯坦·格拉，貝爾德。

Good afternoon. You mentioned that you 3D mix would exceed 75% by year-end in NAND. Could you remind me? Are you decommissioning 2D capacity, or is that 3D capacity all incremental? And what kind of longer-term ratio should we expect between 3D and 2D beyond this year?

午安.您提到到年底，NAND快閃記憶體中3D晶片的佔比將超過75%。你能提醒我嗎？你們是在淘汰二維產能，還是說新增的立體產能？那麼，從長遠來看，今年之後 3D 和 2D 之間的比例會是什麼樣的呢？

It's a transition primarily from planar to 3D. If it were 100% transition, which it's not, that ratio on a square footage basis might be something north of 2-to-1. But we have incremental space as well, so it's not exactly like that.

這主要是從平面到三維的過渡。如果過渡率達到 100%（但實際上並非如此），那麼以平方英尺計算，該比例可能超過 2:1。但我們也有增量空間，所以情況並不完全如此。

Okay. And then could you also remind me, as you transition from 2D to 3D, for the same wafer capacity, what type of bit growth do you get with 64 layer?

好的。那麼，您能否也提醒我一下，在從 2D 過渡到 3D 的過程中，對於相同的晶圓容量，64 層能獲得什麼樣的比特增長？

From a 2D planar NAND, from a planar NAND wafer to a 64 layer 3D NAND wafer?

從二維平面NAND快閃記憶體，從平面NAND快閃記憶體晶圓到64層三維NAND快閃記憶體晶圓？

Correct, yes.

沒錯。

It might be -- it's north of 300%, closer to 4X.

有可能—超過 300%，接近 4 倍。

Thank you.

謝謝。

Jagadish Iyer, Summit Redstone.

賈加迪什·艾耶，峰會紅石。

Thanks for taking my question -- two questions. First, in terms of the DRAM bit supply, given that you have had Inotera under your belt, I'm curious why your bit shipments were only in the low single digits. And then I have follow-up.

謝謝您回答我的問題—我有兩個問題。首先，就 DRAM 位元供應而言，考慮到你們已經收購了 Inotera，我很好奇為什麼你們的位出貨量只有個位數。然後我還有後續工作。

Inotera has always been part of our output and measured in our bit shipments, so the transaction -- the formal closing of the transaction really did not represent an incremental addition to the Company's bit supply.

Inotera 一直是我們產品的一部分，並在我們的比特出貨量中得到體現，因此，這筆交易——交易的正式完成——實際上並沒有增加公司的比特供應量。

Okay, fair enough. Then on the pricing environment for DRAM, what contributed to the 21% increase? Was there any specific subsegment of DRAM that you saw strength? And do you think that this is a one-time event, or how should we think about it? I know you would not give more clarity on pricing going forward, but any color specifically on the 21% increase would be helpful.

好吧，這說得有道理。那麼，在DRAM定價環境下，是什麼因素導致了21%的漲幅？您認為DRAM的哪個細分領域表現強勁？你認為這是一次性事件嗎？還是我們該如何看待這件事？我知道您不會就未來的定價給出更明確的說明，但如果您能具體說明 21% 的漲幅，那就太好了。

We've all been able to read every week about what's happened to DRAM exchange with respect to spot pricing, and certainly that trend as influenced every single other segment. So I think, as Mark mentioned in his script, while last quarter the pricing was more focused around what was happening in the client and OEM markets, this quarter, the impact of that having extended over time and consistent with our earlier comments been subject to some of these contract renewals, are starting to manifest themselves across mobile, across enterprise, and really the full breadth of the DRAM product portfolio.

我們每週都能看到關於DRAM現貨價格走勢的新聞，而這個趨勢無疑影響了其他所有領域。所以我認為，正如馬克在他的腳本中提到的那樣，雖然上個季度的定價更多地集中在客戶端和 OEM 市場發生的事情上，但本季度，隨著時間的推移，這種影響已經持續存在，並且與我們之前的評論一致，受到一些合約續約的影響，這些影響開始在行動、企業以及整個 DRAM 產品組合中顯現出來。

Thank you.

謝謝。

John Pitzer, Credit Suisse.

瑞士信貸的約翰‧皮策。

Good afternoon guys. Thanks for letting me ask a question. Congratulations Mark and Ernie. Ernie, I know you're not going to talk about kind of forward pricing assumptions in the May guide, but when you look at the May guide and just how significantly above investor expectations it were, I was wondering if you could help us quantify or qualify a little bit to what extent is this being driven by cyclical leverage, like-for-like pricing, versus things that might have a little bit more longevity like your ability to mix into better end markets or your ability to cost-down or just operational efficiencies. And as you answer the question, I'd be curious just to see your view on whether or not you believe you are starting to close that cost cap with some of your peers out there.

各位下午好。謝謝允許我提問。恭喜馬克和厄尼。厄尼，我知道你不會在五月份的業績指引中談論遠期定價假設，但是當你看到五月份的業績指引，以及它遠超投資者預期的情況時，我想知道你是否可以幫我們量化或稍微定性一下，這在多大程度上是由周期性槓桿、同類產品定價驅動的，又在多大程度上是由其他因素提高的，例如你融入成本的市場能力的市場能力。當你回答這個問題時，我很想知道你對你是否認為你正在與一些同行一起縮小成本上限有什麼看法。

I think, one, to reiterate something we said earlier, but it is very important, we are really consistent quarter to quarter with how we think about our guidance. So there was no dramatic change from a methodology point of view in that.

我認為，首先，重申我們之前說過的話，這一點非常重要，那就是我們對業績指引的思考方式在每季都保持著高度的一致性。所以從方法論的角度來看，這方面並沒有發生巨大的變化。

And I think, John, you actually hit on many of the points that are contributing to that nice uptick in margin. So, first, we do have a broad profile, and that allows us to move between segments and really maximize the opportunity between those segments. And as you saw this quarter, we are tilting more to cloud and enterprise, which we think represents some good, long-term opportunity for the Company. We have system-level solutions that utilize the breadth of the Company's product portfolio in things like MCPs and builds on the capabilities of the Company with things like SSDs. You have a better technology execution, or strong technology execution, in terms of where we have been in the past, so the gap is closing. We've been consistently telling you that we think it will close and we're going to continue to make progress in that regard.

約翰，我認為你確實提到了許多促成利潤率顯著提升的因素。首先，我們的業務範圍很廣，這使我們能夠在各個細分市場之間轉換，並真正最大限度地利用各個細分市場之間的機會。正如您在本季度所看到的，我們正在更加專注於雲端運算和企業級應用，我們認為這代表著公司一些良好的長期發展機會。我們擁有系統級解決方案，利用公司廣泛的產品組合，例如 MCP，並利用公司在 SSD 等方面的能力。你們的技術執行力更強，或者說技術執行力更勝以往，與我們過去相比，差距正在縮小。我們一直告訴你們，我們認為它會關閉，我們將繼續在這方面取得進展。

And then you do have leverage that comes from the scale that we have achieved over the course of the last two or three years as we've made these technology transitions.

此外，在過去兩三年裡，隨著我們進行這些技術轉型，我們取得了規模上的優勢，這為我們帶來了槓桿作用。

So, really, I think, to the point you are making, this is not only about pricing. It's about pricing and everything else that we've been working on collectively as a team to deliver broad operational capability into all of our end markets.

所以，我認為，正如你所說，這不僅僅是價格的問題。這關乎定價以及我們團隊一直在共同努力的其他一切，旨在為我們所有的終端市場提供廣泛的營運能力。

That's helpful. Then maybe as my follow-up, Mark, in your prepared comments, you talked about having meaningful 1X volume by the end of this fiscal year. I'm wondering if you could quantify what you mean by meaningful. And I guess, from my perspective, it seems like a little bit earlier than I would have expected. Is that true? And if so, are you just finding it an easier ramp? And can you remind us of sort of the cost-downs you expect to get with the move to 1X?

那很有幫助。那麼，馬克，作為我的後續問題，你在事先準備好的評論中提到，到本財年結束時，1X 交易量將達到可觀的水平。我想知道您能否量化一下您所說的「有意義」是什麼意思。我覺得，從我的角度來看，這似乎比我預期的還要早。是真的嗎？如果是這樣，你是不是覺得這條坡道比較容易走？您能否提醒我們一下，您預計採用 1X 方案後能降低多少成本？

I don't want to put too much specificity around exactly where we will end up at the end of the year on a bit mix, but I will tell you that you will recall, at the analyst day, we shared with you that we believe we were making very good progress on our 1X nanometer yield ramp at that time, and that continues to go really very smoothly with a good progress in both Taiwan and Japan. So, we are very happy with the way it's going, and we will continue to monitor that and drive it appropriately.

我不想過多具體說明我們年底的比特組合會達到什麼水平，但我可以告訴你們，你們應該還記得，在分析師日上，我們曾與你們分享過，我們認為當時我們在 1X 奈米良率提升方面取得了非常好的進展，而且這一進展在台灣和日本都繼續非常順利地進行著。所以，我們對目前的進展非常滿意，我們將繼續專注並適當地推進。

I will say also that there's a pretty good suite of products that penetrate a number of different end market segments, and those qualifications are going well and those products are looking very robust. And I'm happy with the way that's coming along.

我還要說，我們有一系列相當不錯的產品，可以滲透到許多不同的終端市場領域，這些產品的資格認證進展順利，而且這些產品看起來非常穩健。我對目前的進展很滿意。

From a cost perspective, I think greater than 20% is what we've indicated in the past, and that's probably a good place to leave it for now. At the end of the day, it will depend on mix. We've got a lot of different products going in a lot of different segments.

從成本角度來看，我認為超過 20% 是我們過去所指出的，目前來說，這可能是比較合適的水平。歸根結底，這取決於配比。我們在很多不同的領域都有很多不同的產品。

Great. Thanks guys. I appreciate it.

偉大的。謝謝各位。謝謝。

Joe Moore, Morgan Stanley.

喬摩爾，摩根士丹利。

Thank you. I'm wondering if you could touch on the NAND prices being down sequentially. I was little surprised to see that relative to what we are hearing.

謝謝。我想請您談談NAND快閃記憶體價格季內下跌的情況。看到這個結果，我有點驚訝，因為我們聽到的都是什麼。

It's primarily around mix. We are shipping a lot of high density TLC 3D product versus, previously, we had some lower density products hanging out in some pretty small niches as our volume has gone up and as we've begun to drive more towards some of these higher density cloud type applications. We are doing more those types of products, and all of the pricing is down. They are driving some pretty significant cost improvements for us as well. And so, from a margin perspective, that's definitely where we want to be moving through time here.

主要圍繞混合展開。隨著銷售量的成長，以及我們開始更多地轉向一些高密度雲端應用，我們現在出貨了大量高密度 TLC 3D 產品，而此前我們只在一些非常小的細分市場銷售一些低密度產品。我們正在生產更多這類產品，而且所有產品的價格都下降了。它們也為我們帶來了相當顯著的成本改善。因此，從利潤率的角度來看，這絕對是我們希望在未來發展的方向。

Okay, great. That's helpful. Thank you. And then your inventory picked up a little bit, and I was surprised to see that because I know how much customers want product. Can you just talk about, that and did that sort of -- is that the ramp in NAND or what are we seeing there?

好的，太好了。那很有幫助。謝謝。然後你們的庫存稍微增加了一些，這讓我很驚訝，因為我知道顧客對產品的需求有多高。您能談談那件事嗎？還有，那件事到底是怎麼回事──那是 NAND 快閃記憶體的斜坡嗎？或者我們看到的是什麼？

Consistent with sort of the ambitious plans we have around the SSD market, I would say the majority of that was attributable to that build-up. And in addition to that, if you are doing a quarter-on-quarter compare, Inotera on the DRAM side was not considered part of the inventory in the December quarter -- or sorry, in the prior quarter -- whereas it's currently part of our inventory. So that was really a significant part of the increase on the DRAM side. So, it's those two things.

與我們圍繞 SSD 市場制定的雄心勃勃的計劃相一致，我認為這大部分都歸功於先前的準備工作。此外，如果您要進行季度環比比較，Inotera 在 DRAM 方面在 12 月季度（或抱歉，是上個季度）不被視為庫存的一部分，而目前它已是我們庫存的一部分。所以這確實是DRAM方面成長的一個重要組成部分。所以，就是這兩件事。

Makes a lot of sense. Thank you very much.

很有道理。非常感謝。

Romit Shah, Nomura.

Romit Shah，野村證券。

This is Kristen [Shak] in for Romit Shah. Thanks for letting me ask a question and congrats on the great quarter, guys.

這是克里斯汀沙克 (Kristen Shak) 飾演羅米特沙阿 (Romit Shah)。謝謝你們允許我提問，也恭喜你們本季業績出色！

My first question, you gave some helpful commentary about the bit growth for the second half of fiscal 2017 versus the first half of fiscal 2017. I was just wondering if you could give some color about how we should think about the cost declines for the second half versus the first half. I'm not looking for anything, really concrete numbers, just anything qualitative would be great.

我的第一個問題是，您對 2017 財年下半年與 2017 財年上半年的比特增長情況給出了一些有益的評論。我只是想問一下，您能否就我們應該如何看待下半年與上半年的成本下降情況給出一些解釋？我不是尋找具體數字，任何定性資訊都歡迎。

I think the best way I would guide you do there is we have actually provided what we thought was going to be a fiscal year -- a fiscal year cost-down target for both technologies and we've now given you all of the pieces that you need to compute that. So, that's how I would guide you to come up with your estimate of what you think our cost-downs are going to be.

我認為最好的指導方式是，我們實際上已經提供了我們認為的財政年度成本下降目標，涵蓋了兩種技術，現在我們已經提供了計算該目標所需的所有資訊。所以，我會這樣引導你估算你認為我們的成本削減幅度會是多少。

Okay, great. Thanks. And then we are still seeing a lot of the spec-ing uptrends for Chinese smartphones, especially in DRAM. With the strong pricing that we've seen in DRAM over the past few months, do you see that trend changing, or do you see that trend continuing? Any color there would be great.

好的，太好了。謝謝。而且我們仍然看到中國智慧型手機的許多規格都在上漲，尤其是在DRAM方面。鑑於過去幾個月DRAM價格的強勁走勢，您認為這種趨勢會改變，還是會持續下去？任何顏色都行。

Sorry, the question around Chinese phones was content or --

抱歉，關於中國手機的問題是關於內容還是——

Yes, content, mainly in DRAM content.

是的，主要是DRAM內容。

We continue to see, in the lower-end and midtier phones, we continue to see pretty good content growth. Yes, there is more of a concern at the high end in terms of what eventually will people stop taking densities up there, but even at the high end, I think we anticipate some continued growth with 6 to 8 gigabits at the top. But in the lower-tier and mid-tier smartphones, we still see pretty robust growth, and so, in aggregate, when we look at mobile, we are thinking in terms of 30% bit growth there this year.

我們持續看到，在低階和中階手機領域，內容成長勢頭依然強勁。是的，高端市場確實存在一個更令人擔憂的問題，那就是人們最終會停止選擇如此高的密度，但即使在高端市場，我認為我們預計仍會繼續成長，最高可達 6 至 8 吉比特。但在低階和中階智慧型手機領域，我們仍然看到相當強勁的成長，因此，總體而言，當我們展望行動領域時，我們認為今年該領域將成長 30%。

Great. Thanks guys.

偉大的。謝謝各位。

Mehdi Hosseini, Susquehanna.

Mehdi Hosseini，Susquehanna。

Hi, thanks for taking my question. This is David Ryzhik for Mehdi. Just two if I can. Just how can we think about contract discussions with customers? Are you seeing more long-term type of duration negotiations? And I just had a quick follow-up. Thanks.

您好，感謝您回答我的問題。這是大衛雷日克為邁赫迪所作的報道。如果可以的話，就兩個吧。我們應該如何看待與客戶的合約談判？您是否看到更多長期談判？我剛剛還有一個簡短的後續問題。謝謝。

It's very different segment to segment, customer to customer. So, I wouldn't say that there is a huge sea change, although clearly there are some customers in this kind of environment that are interested in lengthier relationships.

各個細分市場、各個客戶的情況都大不相同。所以，我不會說發生了巨大的變化，儘管很明顯，在這種環境下，有一些客戶對更長期的合作關係感興趣。

Great. And for 3D NAND, any update on timing of QLC introduction, and would you introduce it at the 64 layer density? Thanks.

偉大的。至於 3D NAND，QLC 的推出時間有更新嗎？你們會推出 64 層密度的版本嗎？謝謝。

Yes, we are not going to be too specific yet about our QLC plans, but we will confirm that we are happy with the way that technology is progressing. And that's probably all we've got to say for now.

是的，我們目前還不會對我們的 QLC 計劃透露太多細節，但我們可以肯定的是，我們對技術的發展方向感到滿意。這就是我們目前想說的全部了。

Thanks so much.

非常感謝。

Robert Mertens, Needham & Company.

Robert Mertens，Needham & Company。

Thank you for taking my question. Just two quick questions on behalf of Raji Gill. You spoke a little bit towards the yields with 3D NAND on the 32 layer. Could you just talk a little bit about your competitive advantage going forward on the 3D NAND side, and then also just give a little bit more color on your gross margin trajectory and how we should think about that throughout the year? Thank you.

感謝您回答我的問題。我代表拉吉·吉爾提出兩個簡短的問題。您剛才稍微談到了 32 層 3D NAND 的良率。您能否談談貴公司在 3D NAND 領域的未來競爭優勢，並進一步闡述貴公司的毛利率走勢以及我們應該如何看待這一年的發展趨勢？謝謝。

We are not going to give you gross margins, as Ernie already indicated unfortunately. We're just not going to go there. But relative to our competitive position on 3D NAND, we feel very good about it. I would direct you back to the comments we made in the slides we showed at the analyst conference a couple of months ago.

很遺憾，正如厄尼已經指出的那樣，我們不會提供毛利率。我們就是不去那裡。但就我們在 3D NAND 領域的競爭地位而言，我們對此感到非常滿意。我建議您回顧一下我們幾個月前在分析師會議上展示的幻燈片中所做的評論。

We are very happy with our 32 layer yields. We are very happy with how we are progressing on our 64 layer spec. And we think we are in the lead position relative to our cost effectiveness and our density and our ability to deliver products at all the (inaudible).

我們對32層膜的產量非常滿意。我們對目前 64 層規範的進展非常滿意。我們認為，就成本效益、密度以及在所有（聽不清楚）地區交付產品的能力而言，我們都處於領先地位。

Okay, great. Thank you.

好的，太好了。謝謝。

C.J. Muse, Evercore.

C.J. Muse，Evercore。

Good afternoon. Thank you for taking my question. Can you guys -- first question -- update us on your thoughts in terms of DRAM supply demand for this year? And are we to assume that tightening shortages should continue through the calendar year? And then assuming the wafers that you already have baked into that 15% to 20% supply, if we don't see new wafers next year and we just think about a world that shrinks, how should we think about supply into calendar 2018?

午安.感謝您回答我的問題。各位能否──第一個問題──談談你們對今年DRAM供需狀況的看法？我們是否可以假設物資短缺加劇的趨勢會持續到年底？假設你已經擁有的晶圓佔供應量的 15% 到 20%，如果我們明年看不到新的晶圓，並且我們設想一個不斷縮小的世界，我們應該如何看待 2018 年的供應情況呢？

We really don't have an update for you. It's still, in our view, it's 15% to 20% supply growth this year, could actually be less than that if there's less new wafers than we have in our plan. Demand is still 20% plus. Next year, we would be in the teens if we don't get the new wafers.

我們目前沒有什麼最新消息可以告訴您。我們認為，今年的供應成長仍將達到 15% 至 20%，但如果新晶圓的數量少於我們的計劃，實際成長幅度可能會更低。需求仍維持在20%以上。明年，如果我們得不到新的晶片，我們的產量就會跌到十幾磅。

Great. And as a follow-up, you talked about second-half DRAM bits being 10% higher than first-half. I'm assuming that's production. Can you hit that on a sales basis, or should we assume slightly less, given the timing of 1X?

偉大的。作為後續問題，您提到下半年的 DRAM 位元比上半年高出 10%。我猜那是生產環節。你能在銷售額上達到這個目標嗎？或者考慮到 1X 的時間安排，我們應該假設略低於這個目標？

No, that was representative of what we think will ultimately be reflected in our financial statements.

不，那隻是我們認為最終會在財務報表中反映的情況的代表。

Excellent. Thanks so much.

出色的。非常感謝。

Stephen Chin, UBS.

Stephen Chin，瑞銀集團。

Great. Thanks for taking my questions. I had a question on, first of all, for the NAND flash business with mobile being only 20% of the sales there. I was wondering. Just given the relatively low exposure there currently relative to the overall market, is that implying that, for the second half of the year, you are expecting you'll see a lot of seasonality that's helping to drive some of the second-half 30% half-on-half growth?

偉大的。謝謝您回答我的問題。首先，我有一個關於 NAND 快閃記憶體業務的問題，因為行動裝置的銷售額只佔該業務銷售額的 20%。我想知道。鑑於目前該領域的投資額相對於整體市場而言較低，這是否意味著，您預計下半年將出現許多季節性因素，從而推動下半年環比成長 30%？

Again, the 30% was a function of our output, and we would direct that output into the various outlets that we have, whether it be the SSD business, the mobile business, etc. So, we will sort of wait and see how that plays out here as we get to the back half of the year.

再次強調，30% 的利潤率取決於我們的產量，我們會將這些產量分配到我們擁有的各種管道，無論是 SSD 業務、行動業務等等。所以，我們會拭目以待，看看到了下半年情況會如何發展。

Okay, that's fair. As my follow-up, in terms of the gross margin guidance, can you talk a bit about the implied cost reductions on both DRAM and NAND flash for this quarter's guidance? Just given the relatively high output for your 20 nanometer DRAM and also I guess the ramping nature of 32 layer 3D, is there still a lot of cost reduction in the current quarter from both of those technologies?

好吧，這很合理。我的後續問題是，關於毛利率預期，您能否談談本季 DRAM 和 NAND 快閃記憶體成本降低的具體情況？考慮到 20 奈米 DRAM 相對較高的產量，以及 32 層 3D 的產能提升特性，這兩種技術在本季是否仍有很大的成本降低空間？

Again, I'd kind of refer you back to the full-year guidance that we provided, which was rather specific. We have now completed two quarters of that year, and we've given you a view of the back-half bit growth. So I think we've given you all the building blocks that you need to derive a gross margin profile, and that's not something that we typically share.

我再次建議您參考我們提供的全年指導意見，其中有非常具體的說明。現在我們已經完成了那一年的兩個季度，並向您展示了下半年的成長。所以我覺得我們已經提供了你推導出毛利率曲線所需的所有基本要素，而這通常不是我們會分享的內容。

And operator, I think we have time for one more question.

操作員，我想我們還有時間再回答一個問題。

Mark Newman, Bernstein.

馬克紐曼，伯恩斯坦。

Hi. Thanks. Congrats on great results. I have a question around your supply growth, given there is such strong pricing out there in the market. So, firstly, can you talk about what the underlying wafer capacity trend is doing for Micron in both DRAM and NAND this year? And related to that, how much flexibility, given how strong pricing is today, how much flexibility does Micron have to add more either this calendar year or next year? I'm not saying that you will. Just how much flexibility do you have to add more if, for whatever economic means reasons, you could make the calculation that it does make sense to add more? Thanks.

你好。謝謝。恭喜取得如此優異的成績！鑑於目前市場價格如此強勁，我有一個關於你們供應成長的問題。首先，您能否談談今年晶圓產能的整體趨勢對美光在DRAM和NAND領域的影響？與此相關的是，鑑於目前的價格如此強勁，美光科技在今年或明年有多少彈性來增加產能？我不是說你一定會這麼做。如果出於某種經濟原因，你計算出增加更多容量是合理的，那麼你究竟有多少彈性可以增加容量？謝謝。

I think the best way -- as best as we going to characterize wafers would be to say it's pretty stable. We are very focused on technology transitions. We are not focused on adding more supply, so we are just utilizing the existing capacity and transitioning it through advanced nodes. We do have white space in both our Fab 16 in Taichung as well as Fab 10X, but we are not planning any capacity additions this year. And if we were to decide we wanted to, which I think is unlikely, for us, as for our competitors, there is significant leadtime at the moment for equipment and it would take quite a while to bring that on in the marketplace.

我認為描述晶圓的最佳方式——或者說我們能對晶圓做出的最佳描述——就是說它相當穩定。我們非常關注技術轉型。我們並不專注於增加供應，所以我們只是利用現有產能，並將其過渡到先進的節點。我們在台中Fab 16和Fab 10X都有剩餘產能，但我們今年沒有計畫增加產能。即使我們決定要這樣做（我認為這不太可能），對我們和我們的競爭對手來說，目前設備的交付週期都很長，需要相當長的時間才能將其推向市場。

Is it possible to quantify how much it would be in terms of wafers? Again, not saying you're going to add it, but just how much capacity you have the ability -- and how much do you have the ability to add in both DRAM and NAND?

能否量化一下這相當於多少晶圓？再次聲明，我不是說你一定會添加，而是說你到底有多少容量——以及你分別有多少容量可以添加到DRAM和NAND中？

No, and, again, it's kind of moot. So, thanks for the questions.

不，而且，再說一遍，這其實沒什麼意義。謝謝大家的提問。

Thanks very much.

非常感謝。

This is Ernie. Before we close, I wanted to share with everyone that Ivan is going to be transitioning out of his IR role into another role here at Micron, and I wanted to personally express my appreciation to him for his support of the Company during his tenure in IR, including bringing me up to speed, which was quite challenging, I'm sure. We will miss him very, very much. We are in the process of determining how best to fill his shoes, but in the interim, Liz Morali will be the primary IR contact point. And with that, we will say thanks again for your participation and we'll talk to you next quarter.

這是厄尼。在結束前，我想告訴大家，Ivan 即將卸任投資人關係職務，轉任美光科技的其他職務。我個人也想對他擔任投資者關係職務期間對公司的支持表示感謝，包括幫助我快速上手，我相信這對他來說相當具有挑戰性。我們會非常非常想念他。我們正在確定如何最好地填補他的空缺，但在此期間，Liz Morali 將是 IR 的主要聯絡人。最後，我們再次感謝您的參與，我們下個季度再見。

Thank you everyone.

謝謝大家。

Thank you. This concludes today's Micron Technology second-quarter 2017 financial release conference call. You may now disconnect.

謝謝。美光科技2017年第二季財務報告電話會議到此結束。您現在可以斷開連線了。