輝達 (NVDA) 2005 Q1 法說會逐字稿

Good day, everyone, and welcome to the PortalPlayer, Incorporated, first quarter 2005 earnings conference call. Today's call is being recorded and will be available for playback beginning two hours after the completion of the call. To access the replay, please dial 719-457-0820 with the passcode 5879481. At this time, for opening remarks, I'd like to turn the call over to Kristine Mozes, Investor Relations for PortalPlayer. Please go ahead.

大家好，歡迎參加 PortalPlayer, Incorporated 2005 年第一季度財報電話會議。正在錄製今天的通話，通話結束兩小時後即可開始播放。如需觀看重播，請撥打 719-457-0820，密碼為 5879481。此時，作為開場白，我想將電話轉給 PortalPlayer 投資者關係部的 Kristine Mozes。請繼續。

Thank you for joining us today. In addition to this call being available by phone replay, it is being webcast, broadcast live via the Investor Relations page of PortalPlayer's website at www.PortalPlayer.com. Earlier today we issued our earnings press release and filed it with the SEC. The press release is also available on PortalPlayer's website. That press release contains certain non-GAAP financial measures, which we will discuss during today's call, together with the most directly comparable financial measures calculated in accordance with GAAP and reconciliations of the differences between these measures.

感謝您今天加入我們。除了通過電話重播獲得本次電話會議外，還通過 PortalPlayer 網站 www.PortalPlayer.com 的投資者關係頁面進行網絡直播和現場直播。今天早些時候，我們發布了我們的收益新聞稿並提交給了美國證券交易委員會。該新聞稿也可在 PortalPlayer 的網站上獲得。該新聞稿包含某些非公認會計原則財務指標，我們將在今天的電話會議中討論這些指標，以及根據公認會計原則計算的最直接可比的財務指標以及這些指標之間差異的對賬。

With me today is Gary Johnson, president and CEO of PortalPlayer, and Olav Carlsen, PortalPlayer's chief financial officer. I will begin this call by reading our Safe Harbor statement.

今天和我在一起的是 PortalPlayer 的總裁兼首席執行官 Gary Johnson 和 PortalPlayer 的首席財務官 Olav Carlsen。我將從閱讀我們的安全港聲明開始本次電話會議。

Before we begin our discussions, statements on today's call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements include but are not limited to statements as to the future plans and growth development efforts, introductions of products and technology, the growth of and trends in the MP3 player market, our and our customers' market leadership, demand for our products, the expected benefits of our products and technology, and future financial results, including revenue, net income, expenses, growth margins, ASPs, stock-based compensation charges, tax rates, cash flow and future R&D spending. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements. Please refer to today's earnings release and our Form 10-K for the year ended December 31, 2004 as filed with the SEC and, from time to time, in our SEC reports for information on risk factors that can cause actual results to differ materially from those discussed in these forward-looking statements. These forward-looking statements speak only as of the date hereof. PortalPlayer disclaims any intent or obligation to update these forward-looking statements. Additionally, this conference call is the property of PortalPlayer and may not be recorded or rebroadcast without specific written permission from the Company. Now I would like to turn the call over to Gary for his introductory remarks. Gary?

在我們開始討論之前，關於今天電話會議的陳述並非歷史事實，屬於《私人證券訴訟改革法案》含義內的前瞻性陳述。這些前瞻性陳述包括但不限於關於未來計劃和增長發展努力、產品和技術的介紹、MP3 播放器市場的增長和趨勢、我們和我們客戶的市場領導地位、對我們的需求的陳述。產品、我們的產品和技術的預期收益以及未來的財務業績，包括收入、淨收入、費用、增長利潤率、平均售價、基於股票的薪酬費用、稅率、現金流和未來的研發支出。這些前瞻性陳述受到許多風險和不確定性的影響，可能導致實際結果與這些前瞻性陳述中討論的結果大不相同。請參閱今天的收益發布和我們提交給美國證券交易委員會的截至 2004 年 12 月 31 日止年度的 10-K 表格，以及不時在我們的美國證券交易委員會報告中關於可能導致實際結果與實際結果大不相同的風險因素的信息。這些前瞻性陳述中討論的內容。這些前瞻性陳述僅在本文發布之日發表。 PortalPlayer 不承擔更新這些前瞻性陳述的任何意圖或義務。此外，本次電話會議是 PortalPlayer 的財產，未經公司明確書面許可，不得錄製或轉播。現在，我想將電話轉給 Gary 進行介紹性發言。加里？

Thank you and welcome, everyone. Once again, we had a great quarter. First quarter revenue more than quadrupled from the first quarter a year ago and rivaled the record revenue recorded during the seasonally strong holiday season last quarter. A key driver to this quarter's growth was the launch of our new PP5022 chip, which I will describe in more detail in a few minutes.

謝謝大家，歡迎大家。再一次，我們有一個很棒的季度。第一季度的收入比一年前的第一季度增長了四倍多，與上一季度季節性強勁的假日季節的創紀錄收入相媲美。本季度增長的一個關鍵驅動因素是我們新的 PP5022 芯片的推出，我將在幾分鐘內更詳細地描述它。

As you know, the consumer-tight industry can typically experience and up to 30% sequential decrease in the first quarter following the strong holiday season. So we are very pleased with the results we are reporting today. The high revenue results also showed us to achieve record cash flow in the first quarter of $13.6 million. In addition, our gross margin improved sequentially by 40 basis points when you exclude the one-time effect of that sale of the previously written-up material had in our margins in both Q4 and Q1. Olav will give you more details in a minute.

如您所知，在強勁的假日季節之後，消費者緊張的行業通常會在第一季度經歷高達 30% 的連續下降。因此，我們對今天報告的結果感到非常滿意。高收入結果還表明我們在第一季度實現了創紀錄的 1360 萬美元的現金流。此外，當您排除出售先前書面材料對我們在第四季度和第一季度的利潤率產生的一次性影響時，我們的毛利率連續提高了 40 個基點。奧拉夫將在一分鐘內為您提供更多詳細信息。

In addition, we created considerable excitement in the marketplace with some new revolutionary features that we demonstrated to our customers with two new semiconductor devices we introduced to the market. We believe these featured devices will help contribute significantly to our growth the rest of the year. Our new 5022 system-on-chip up to triples the battery life for today's hard-drive media players and can also support high-capacity flash media players.

此外，我們通過向市場推出的兩種新半導體器件向客戶展示了一些新的革命性功能，在市場上引起了極大的轟動。我們相信這些特色設備將有助於我們在今年餘下時間的增長做出重大貢獻。我們全新的 5022 片上系統可將當今硬盤媒體播放器的電池壽命延長三倍，還可以支持大容量閃存媒體播放器。

Our new 5024 system in package, which we began sampling in Q1 is our first device that integrates the media processor along with the audio, car management and battery charging features in a single package for MP3 flash players. With both the 5022 and the 5024, we believe we can extend our hard-drive technology leadership as well as target a much larger percentage of the '04 personal media player market, both hard drive and flash.

我們在第一季度開始提供樣品的全新 5024 系統封裝是我們第一款將媒體處理器與音頻、汽車管理和電池充電功能集成在一個用於 MP3 閃存播放器的單個封裝中的設備。憑藉 5022 和 5024，我們相信我們可以擴展我們的硬盤技術領先地位，並瞄準更大比例的 '04 個人媒體播放器市場，包括硬盤和閃存。

Actually, Jon Erensen of the market research firm, Gartner, recently released new hard drive and flash digital audio player estimates. According to his report, the hard drive portion of the market is expected to grow 104% in 2005 over 2004 to be over 28 million units this year. The flash portion of the market is expected to grow 74% year-over-year to be close to 46 million units in 2005. In a few minutes, I will go into more detail about our new products, our first quarter progress, and some key market trends. But first I will turn the call over to Olav, who will take you through the details of our first quarter financials.

實際上，市場研究公司 Gartner 的 Jon Erensen 最近發布了新的硬盤驅動器和閃存數字音頻播放器的估計值。根據他的報告，2005 年硬盤市場份額預計將比 2004 年增長 104%，今年將超過 2800 萬台。預計閃存部分市場將同比增長 74%，2005 年將接近 4600 萬台。幾分鐘後，我將詳細介紹我們的新產品、第一季度的進展以及一些主要市場趨勢。但首先我會將電話轉給 Olav，他將帶您了解我們第一季度財務的詳細信息。

Thank you, Gary, and welcome, everyone. This first quarter of 2005 was again a quarter of very significant year-over-year growth. We are very pleased to report that net revenue for this quarter was $44.6 million, which is more than four times the revenue of $10.2 million in the same period a year ago, and about the same as the record revenue of $44.7 million we recorded in the fourth quarter of 2004.

謝謝你，加里，歡迎大家。 2005 年第一季度又是一個非常顯著的同比增長的季度。我們很高興地報告，本季度的淨收入為 4460 萬美元，是去年同期 1020 萬美元收入的四倍多，與我們在2004 年第四季度。

As Gary just mentioned, the fourth quarter of any given year is typically the strongest for the consumer electronics market, and so we are very pleased that demand for products that utilize our technology continue to be so strong even during a traditionally weaker quarter. Again, this quarter, we saw strong demand from both our largest customer as well as from other customers from which we recognize to get more than $5 million of revenue. And in the first quarter, all of our revenue came from shipments for the hard drive based media players. We began shipping our new 5022 system on chip in volume during this quarter and demand for that product was quite strong. Revenue from the 5022 already accounted for a significant portion of our total revenue in the first quarter, and so, as you can see, the introduction of this new product has really been a great success.

正如 Gary 剛剛提到的，任何一年的第四季度通常是消費電子市場最強勁的時期，因此我們很高興即使在傳統上較弱的季度，對使用我們技術的產品的需求仍然如此強勁。同樣，本季度，我們看到我們最大的客戶以及其他客戶的強勁需求，我們認為這些客戶將獲得超過 500 萬美元的收入。在第一季度，我們所有的收入都來自基於硬盤的媒體播放器的出貨量。我們在本季度開始批量出貨新的 5022 片上系統，對該產品的需求非常強勁。 5022 的收入已經占我們第一季度總收入的很大一部分，因此，如您所見，這款新產品的推出確實取得了巨大的成功。

Net income for the first quarter was $7.8 million compared with a net loss of $2.4 million in the same period a year ago. The first quarter 2005 net income resulted in an income of $0.31 per diluted share based on 25 million weighted average shares outstanding compared with a loss of $15.37 per share based on approximately 157,000 weighted average shares outstanding in the same quarter a year ago. And the significant difference in share count between these two quarters is, of course, due to the fact that in the first quarter of '04 we were still a private company.

第一季度淨收入為 780 萬美元，而去年同期淨虧損 240 萬美元。 2005 年第一季度的淨收益為每股攤薄收益 0.31 美元（基於 2500 萬股加權平均流通股），而基於去年同一季度約 157,000 股加權平均流通股的每股虧損 15.37 美元。當然，這兩個季度之間股票數量的顯著差異是由於在 04 年第一季度我們仍然是一家私營公司。

Net income in the fourth quarter of 2004 was $10.5 million, or $0.50 per diluted share based on 21.1 million weighted average shares in that quarter and the increase in share count between Q4 and the first quarter of '05 is due to the fact that the share count is the weighted average. So shares issued in our IPO in late November only partially affected the fourth quarter average but that fully included in our first quarter numbers.

2004 年第四季度的淨收入為 1,050 萬美元，或攤薄後每股 0.50 美元，基於該季度 2,110 萬股加權平均股數，並且在 05 年第四季度和第一季度之間股票數量的增加是由於該股count 是加權平均值。因此，我們在 11 月下旬首次公開募股中發行的股票僅部分影響了第四季度的平均水平，但完全包含在我們的第一季度數據中。

On the tax side, for federal tax purposes, we are still carrying forward approximately $6 million of freely available net operating losses. Based on our current strong financial performance and our business outlook for the remainder of 2005, as well as the fact that we are quickly using up most of our NOLs, we began to provide for tax liabilities as we sat last quarter using an effective tax rate of 25%. That compares with only a 3% tax rate that we used last quarter than all for alternative minimum taxes.

在稅收方面，出於聯邦稅收的目的，我們仍在結轉大約 600 萬美元的可自由使用的淨經營虧損。基於我們目前強勁的財務業績和我們對 2005 年剩餘時間的業務前景，以及我們正在迅速用完大部分 NOL 的事實，我們開始使用有效稅率為上個季度的稅收負債提供準備金25%。相比之下，我們上個季度僅使用了 3% 的稅率，而不是其他最低稅率。

Excluding noncash stock compensation charges of $384,000, non-GAAP net income for the first quarter of '05 was $8.2 million, or $0.33 per diluted share compared with a non-GAAP net loss in the first quarter of '04 of approximately $434,000, or a loss of $2.77 per share. Non-GAAP net income for the fourth quarter of '04 was $11.2 million, or $0.53 per diluted share. And in our earnings release, we provided the detailed reconciliation between GAAP numbers and the non-GAAP numbers, which detailed the stock compensation charges for each quarter.

不計 384,000 美元的非現金股票補償費用，05 年第一季度的非公認會計原則淨收入為 820 萬美元，或稀釋後每股 0.33 美元，而 04 年第一季度的非公認會計原則淨虧損約為 434,000 美元，或每股虧損 2.77 美元。 04 年第四季度的非公認會計原則淨收入為 1120 萬美元，或每股攤薄收益 0.53 美元。在我們的收益發布中，我們提供了 GAAP 數字和非 GAAP 數字之間的詳細核對，其中詳細說明了每個季度的股票薪酬費用。

So now let me discuss some information on this quarter's P&L, and then I will move on to the balance sheet. The first quarter was a great success on all accounts. Our gross margin for the first quarter was 43.1%. This is well within our long-term model of 41% to 44% and compares with 43.4% in the fourth quarter of 2004. Last quarter in Q4 our gross margin was favorably impacted by 90 basis points from the sale of previously written-off material. In Q1, however, the sale of previously written-off material had a favorable impact of only 20 basis points on our overall gross margin. So if you eliminate this impact to both quarters, the gross margin for our current product actually went up 40 basis points sequentially.

所以現在讓我討論一些關於本季度損益表的信息，然後我將繼續討論資產負債表。第一季度在所有方面都取得了巨大的成功。我們第一季度的毛利率為 43.1%。這完全符合我們 41% 到 44% 的長期模型，而 2004 年第四季度為 43.4%。在第四季度的最後一個季度，我們的毛利率受到以前註銷材料銷售 90 個基點的有利影響.然而，在第一季度，以前註銷的材料的銷售對我們的整體毛利率僅產生了 20 個基點的有利影響。因此，如果你消除這兩個季度的影響，我們當前產品的毛利率實際上連續上升了 40 個基點。

As we have said in the past, we expect a piece to decrease in the 20% to 25% range year-over-year on a single SKU basis, however we expect the blended portfolio ASP to decrease by only 10% to 15% year-over-year, as we are able to achieve higher prices on our newer products, which we accomplished this quarter.

正如我們過去所說，我們預計單個 SKU 的單品價格將同比下降 20% 至 25%，但我們預計混合組合 ASP 每年僅下降 10% 至 15% - 與去年同期相比，因為我們能夠在本季度完成的新產品上實現更高的價格。

Operating expenses were $9.7 million in the first quarter, which includes the $1.2 million increase in R&D and SG&A, offset by a lower stock charge in this quarter. So let me break this down for you -- the majority of the additional spending, about $1.1 million, was allocated to our R&D activities, which came in at $6.4 million. This represented 14% of revenues, which is below our target of 16% to 17%, mostly due to the higher revenue in the quarter.

第一季度的運營費用為 970 萬美元，其中包括研發和 SG&A 增加的 120 萬美元，但被本季度較低的庫存費用所抵消。所以讓我為你分解一下——大部分額外支出，大約 110 萬美元，分配給了我們的研發活動，其中有 640 萬美元。這佔收入的 14%，低於我們 16% 至 17% 的目標，主要是由於本季度收入增加。

Now, as expected, our focus on product development resulted in an increased level in our e-type expenses, but, more importantly, we were also able to fill some of our staff openings, especially in the strategic R&D area here in the U.S. and at our subsidiary in India. Going forward, we now expect to accelerate some of our important R&D milestones resulting in additional NRE expenses, especially in the second quarter. So we also plan to continue to hire additional resources, moving forward. Accordingly, we expect R&D in the next quarter to be about $8 million.

現在，正如預期的那樣，我們對產品開發的關注導致我們的電子類費用水平增加，但更重要的是，我們也能夠填補我們的一些員工空缺，特別是在美國的戰略研發領域和在我們在印度的子公司。展望未來，我們現在預計將加快一些重要的研發里程碑，從而導致額外的 NRE 費用，尤其是在第二季度。因此，我們還計劃繼續僱傭額外的資源，繼續前進。因此，我們預計下一季度的研發費用約為 800 萬美元。

SG&A expenses in the first quarter were $2.9 million, or about 7% of revenue, which is $137,000 increase from the previous quarter. For the second quarter of '05, we expect SG&A to increase by about $500,000 mostly due to additional costs associated with our Sarbanes-Oxley compliance.

第一季度的 SG&A 費用為 290 萬美元，約佔收入的 7%，比上一季度增加了 137,000 美元。對於 05 年第二季度，我們預計 SG&A 將增加約 500,000 美元，這主要是由於與我們的 Sarbanes-Oxley 合規相關的額外成本。

We expect our noncash stock compensation charges to be approximately $450,000 in the second quarter of '05, however, the stock compensation charge will also include a small variable element based on our ending stock price and, therefore, the exact amount is hard to predict.

我們預計 05 年第二季度的非現金股票補償費用約為 450,000 美元，但是，股票補償費用還將包括基於我們的期末股票價格的一個小的可變因素，因此，確切的金額很難預測。

And so now let's turn to the balance sheet. Our accounts receivable were $22.8 million with an average DSO of about 44 days, and our inventory balance at March 31st was at $8.5 million, all of which is finished goods. So this balance is now much closer to our targeted inventory level of 30 days than the $1.8 million of inventory, which showed in our Q4 numbers, which only represented about six days of inventory at that time.

現在讓我們轉向資產負債表。我們的應收賬款為 2280 萬美元，平均 DSO 約為 44 天，我們在 3 月 31 日的庫存餘額為 850 萬美元，所有這些都是製成品。因此，這種餘額現在更接近我們 30 天的目標庫存水平，而不是 180 萬美元的庫存，這在我們的第四季度數據中顯示，當時僅代表大約 6 天的庫存。

Deferred income, which represents the margin on those shipments that we defer in accordance with our revenue recognition policy was $4.3 million at the end of the first quarter, slightly above the fourth quarter number of $4 million. We generated a record quarterly positive cash flow from operations in the first quarter, more than $13 million, and so our cash and short-term investments increased to $137 million at the end of the first quarter.

遞延收入，代表我們根據我們的收入確認政策遞延的那些出貨量的利潤，在第一季度末為 430 萬美元，略高於第四季度的 400 萬美元。我們在第一季度產生了創紀錄的季度正現金流，超過 1300 萬美元，因此我們的現金和短期投資在第一季度末增加到 1.37 億美元。

Headcount at the end of the quarter was about 194. We added 13 employees during the first quarter, most of them in R&D. At the end of the quarter, more than three quarters of our overall headcount was focused on our current or strategic R&D activities and, again, half of our overall headcount was based in Hyderabad in India.

本季度末員工人數約為 194 人。第一季度我們增加了 13 名員工，其中大部分在研發部門。在本季度末，我們總人數的四分之三以上專注於我們當前或戰略性的研發活動，而且，我們總人數的一半再次位於印度海得拉巴。

We also recently signed a new lease and are planning to move our Santa Clara operations to San Jose at the beginning of June. The new facility allows us to support our planned growth as well as take advantage of the very favorable real estate rate, which are among the lowest in the past decade.

我們最近還簽署了一份新租約，併計劃在 6 月初將我們的聖克拉拉業務轉移到聖何塞。新設施使我們能夠支持我們的計劃增長，並利用非常有利的房地產價格，這是過去十年中最低的。

We believe fiscal 2005 will continue to be a significant growth year for both the flash and hard drive MP3 markets, and according to market forecasts, demand continues to be strong in both segments. In the near term, we expect demand for personal media players to continue to be stronger than the typical seasonal consumer electronics trends. Therefore, we believe that our revenue for the second quarter of 2005 could be about the same as the first quarter revenue, and so we expect second quarter revenue to be between $41.6 million and $47.6 million.

我們認為 2005 財年將繼續是閃存和硬盤 MP3 市場的顯著增長年，並且根據市場預測，這兩個領域的需求將繼續保持強勁。在短期內，我們預計對個人媒體播放器的需求將繼續強於典型的季節性消費電子產品趨勢。因此，我們認為我們 2005 年第二季度的收入可能與第一季度的收入大致相同，因此我們預計第二季度的收入將在 4160 萬美元到 4760 萬美元之間。

Operating expenses are expected to be approximately $11.4 million, and we expect our stock-based compensation charges to be about $450,000, and GAAP net income per diluted share to be between $0.19 and $0.25 based on approximately 25.5 million weighted average shares outstanding.

運營費用預計約為 1140 萬美元，我們預計基於股票的薪酬費用約為 450,000 美元，根據約 2550 萬股加權平均流通股，GAAP 每股攤薄淨收益將在 0.19 美元至 0.25 美元之間。

The effective tax rate for the second quarter is expected to remain at 25% and non-GAAP net income per diluted share, excluding our compensation charges, is expected to be between $0.21 and $0.27.

第二季度的有效稅率預計將保持在 25%，非公認會計準則每股攤薄淨收入（不包括我們的補償費用）預計在 0.21 美元至 0.27 美元之間。

So, at this time, I would like to turn the call back over to Gary for his comments. Gary?

因此，此時，我想將電話轉回給 Gary 以徵求他的意見。加里？

Thank you, Olav. As you see from the financials, the first quarter was a great start to the new year. As Olav mentioned, the first quarter demand came from both our largest customer as well as from some of our design wins and new customers that launched their products in the fourth quarter last year.

謝謝你，奧拉夫。正如您從財務數據中看到的，第一季度是新一年的良好開端。正如 Olav 所說，第一季度的需求來自我們最大的客戶以及我們的一些設計勝利和去年第四季度推出產品的新客戶。

Revenue from other customers, which includes iRiver, Olympus, Samsung, increased more than six times than the revenue we had from other customers in the same period a year ago.

來自其他客戶（包括 iRiver、奧林巴斯、三星）的收入比去年同期來自其他客戶的收入增長了六倍多。

As you may remember, our customer strategy is to focus our efforts on winning designs from those companies who are the brand leaders worldwide -- those that have the marketing clout and shelf space to enable their products to potentially ramp to significant volumes.

您可能還記得，我們的客戶戰略是將我們的努力集中在贏得全球品牌領導者公司的設計上——那些擁有營銷影響力和貨架空間的公司，使他們的產品有可能大量增加。

On our last conference call, we mentioned iRiver, a recognize leader in the MP3 market had recently introduced the H10 MP3 jukebox based on our photo edition platform. The one-inch hard drive, 5-gigabyte design has been well received in the marketplace not only for its MP3 capabilities and color LTD screen, but is also one of the first Microsoft plays-for-sure compliance products that supports the recently launched subscription music service.

在我們上次的電話會議上，我們提到了 MP3 市場公認的領導者 iRiver 最近推出了基於我們照片編輯平台的 H10 MP3 點唱機。 1 英寸硬盤驅動器、5 GB 設計不僅因其 MP3 功能和彩色 LTD 屏幕而在市場上廣受好評，而且還是首批支持最近推出的訂閱的 Microsoft 確保遊戲合規產品之一音樂服務。

iRiver also just recently introduced a 20-gigabyte version of the H10, which can bolt to the subscription model allowing users to download greater amounts of digital media. The best example of the MP3 brand leader is, of course, Apple Computer. The new iPod mini-models that were introduced in late February utilize our latest system-on-chip technology, which I will discuss in a few minutes.

iRiver 最近還推出了 20GB 版本的 H10，它可以固定到訂閱模式，允許用戶下載更多的數字媒體。 MP3 品牌領導者最好的例子當然是蘋果電腦。 2 月下旬推出的新款 iPod mini 型號採用了我們最新的片上系統技術，我將在幾分鐘後討論該技術。

On the operations side, we are dedicated to providing high-performance semiconductor solutions, innovative firmware and software, and flexible development kits that help our customers to design leading-edge, differentiated products in the high-capacity feature-rich hard drive and now flash memory markets.

在運營方面，我們致力於提供高性能的半導體解決方案、創新的固件和軟件以及靈活的開發套件，幫助我們的客戶在大容量、功能豐富的硬盤驅動器和現在的閃存中設計領先的差異化產品內存市場。

In the first quarter we dedicated much of our time and effort to further improving our existing technologies and working on upcoming technology initiatives that we believe will drive market growth and differentiation for our customers in the future.

在第一季度，我們投入了大量時間和精力來進一步改進我們現有的技術，並致力於即將推出的技術舉措，我們相信這些舉措將在未來為我們的客戶推動市場增長和差異化。

First let's look at the improvements we've made. In early March we launched our fifth-generation SoC, system-on-a-chip, the 5022, and announced the 5024, which is a new systems in package targeted at the high-capacity, feature-rich MP3 market. The technology incorporated in these solutions dealt with three major initiatives -- battery life, analog integration, and price points. So let's go through each of these new products, and I will discuss the improvements and features along the way.

首先讓我們看看我們所做的改進。 3 月初，我們推出了我們的第五代 SoC，即片上系統 5022，並發布了 5024，這是一款針對大容量、功能豐富的 MP3 市場的新型封裝系統。這些解決方案中採用的技術涉及三個主要舉措——電池壽命、模擬集成和價格點。因此，讓我們逐一介紹這些新產品，並在此過程中討論改進和功能。

First, let's look at our new 5022 SoC. This chip, which is manufactured on a 0.13 micron processor, up to triples the battery life of the hard-drive media players, while increasing system peak performance by up to 25%. It also supports flash memory storage media. Hard-drive-based media players based on the technology can now play for up to 28 hours, or about 2 hours a day for two weeks. We believe this two-week usage model puts to rest the question about the battery life that media players can achieve with our products.

首先，讓我們看看我們的新 5022 SoC。該芯片採用 0.13 微米處理器製造，可將硬盤媒體播放器的電池壽命延長三倍，同時將系統峰值性能提高 25%。它還支持閃存存儲介質。基於該技術的基於硬盤的媒體播放器現在可以播放長達 28 小時，或者兩週內每天大約 2 小時。我們相信，這種兩週使用模式解決了媒體播放器可以使用我們的產品實現的電池壽命的問題。

On an ongoing basis, we plan to continue to develop new innovations not only with audio power management improvements, but also with driving industry-leading support for decoding high-resolution photos and digital rights managed video content.

在持續的基礎上，我們計劃繼續開發新的創新，不僅包括改進音頻電源管理，還包括推動行業領先的對高分辨率照片和數字版權管理視頻內容的解碼支持。

Second, in addition to battery life improvements and increased system performance, our 5022 offers a host of new and upgraded features such as best-in-class photo viewing for music slide shows, USB 2.0 host, On-the-Go, and pig sync, offering compatibility for the first time to a large range of camera models. Also MJPEG video MPEG-4 video, and high performance co-processor support through our co-processor system interfaces. And, finally, 2 to 3 megapixel image support for integrated camera applications.

其次，除了延長電池壽命和提高系統性能外，我們的 5022 還提供了許多新的和升級的功能，例如一流的音樂幻燈片查看照片、USB 2.0 主機、On-the-Go 和 pig 同步，首次提供與大量相機型號的兼容性。此外，通過我們的協處理器系統接口支持 MJPEG 視頻 MPEG-4 視頻和高性能協處理器。最後，為集成相機應用提供 2 到 3 兆像素的圖像支持。

The 5022 also meets the demands of today's diverse display technologies, which is high-resolution, normal LCD displays, and television out support. Our dual view display technology enables users to navigate a handheld LCD to preview and select music follow the video or playing a different image concurrently on a television screen. We are very excited about the achievements we have made with this new device and how smoothly and quickly we have been able to wrap manufacturing. Reviews of the models using the 5022 with this dramatic extended battery life have been extremely favorable.

5022 還滿足當今各種顯示技術的需求，即高分辨率、普通 LCD 顯示和電視輸出支持。我們的雙視圖顯示技術使用戶能夠導航手持式 LCD 以預覽和選擇跟隨視頻的音樂或在電視屏幕上同時播放不同的圖像。我們對使用這種新設備所取得的成就以及我們能夠多麼順利和快速地完成製造感到非常興奮。使用 5022 電池壽命顯著延長的型號的評論非常受歡迎。

Third, our new 5024 system-in-package, or SIP, takes many of the high-performance hardware features that are in our new 5022 chip and combines them with analog integration to deliver revolutionary solution for feature-rich, high-capacity MP3 players. By integrating our new 0.13 micron media processor with a 0.135 micron mixed signal SoC that we worked jointly on with AustriaMicrosystems, we now have a fully integrated in a small 10x10 mm chip package solution that is designed for high-capacity, feature-rich, flash-based designs.

第三，我們新的 5024 系統級封裝 (SIP) 採用了我們新的 5022 芯片中的許多高性能硬件功能，並將它們與模擬集成相結合，為功能豐富的大容量 MP3 播放器提供革命性的解決方案.通過將我們新的 0.13 微米媒體處理器與我們與 AustriaMicrosystems 合作開發的 0.135 微米混合信號 SoC 集成，我們現在擁有一個完全集成在小型 10x10 毫米芯片封裝中的解決方案，該解決方案專為大容量、功能豐富的閃存而設計——基於設計。

The SIP integrates a system processor along with the audio, power management, and battery-charging features, and this is a first step in our analog integration roadmap.

SIP 集成了系統處理器以及音頻、電源管理和電池充電功能，這是我們模擬集成路線圖的第一步。

The 5024 is our first product to utilize stacked dye System-in-Package technology and enables us to create semi-custom integration options of highly integrated devices that supports specific customer and product requirements. Stacked dye enables us to offer a mix-and-match approach to particular customer platform, and enabling solutions offer a small footprint, ease in design the board, and a simplified firmware support model since variation is reduced.

5024 是我們第一個利用堆疊染料系統級封裝技術的產品，使我們能夠創建支持特定客戶和產品要求的高度集成設備的半定制集成選項。堆疊染料使我們能夠為特定的客戶平台提供混合搭配的方法，並且支持解決方案提供小尺寸、易於設計電路板以及簡化的固件支持模型，因為減少了變化。

The 5024 brings, for the first time, those features that are used in hard-drive players such as color screens and support for the multi-media features like gaming and video to high-capacity flash memory-based personal media players, and we are doing so at attractive price points. The 5024 will be generally available in the second half of the year for 995 at 10,000-unit volumes and as is typical, significant discounts apply to higher volumes offering very competitive price points.

5024 首次將那些用於硬盤播放器的功能（例如彩屏）以及對遊戲和視頻等多媒體功能的支持帶入了基於大容量閃存的個人媒體播放器，我們正在以有吸引力的價格這樣做。 5024 將在下半年以 995 的批量供貨，批量為 10,000 件，通常情況下，大幅折扣適用於提供極具競爭力的價格點的更高批量。

We are often asked what will be the target market for 5024, how big will that market be? In order to define this opportunity, we look at the combination of storage capacity and features the players will offer. The design must have enough storage to say this solution is feature-rich, one adds a database, more advanced content management and license support for DRM-based content, and we expect OEMs to become interested in offering these types of features and functionality beginning with a 1-gigabyte flash player supporting subscription music services. This market is emerging, however, we believe as flash costs continue to decrease, companies will move quickly to design high-capacity flash products.

我們經常被問到 5024 的目標市場是什麼，這個市場會有多大？為了定義這個機會，我們將研究玩家將提供的存儲容量和功能的組合。設計必須有足夠的存儲空間才能說明此解決方案功能豐富，添加了一個數據庫、更高級的內容管理和對基於 DRM 的內容的許可支持，我們希望 OEM 開始對提供這些類型的特性和功能感興趣支持訂閱音樂服務的 1 GB 閃存播放器。這個市場正在興起，然而，我們相信隨著閃存成本的不斷下降，公司將迅速採取行動設計大容量閃存產品。

By the end of the year, we believe that 1-gigabyte or greater high-capacity flash market could exceed 20% of the total flash player volume run rate. As a reminder, Gartner is expecting the flash market to be 45.8 million units this year.

到今年年底，我們認為 1GB 或更大容量的閃存市場可能會超過閃存播放器總運行率的 20%。提醒一下，Gartner 預計今年閃存市場將達到 4580 萬台。

We believe the 5022 and 5024 will enable us to target a larger percentage of the '04 digital player market and should help us win new designs with new customers as well as our existing customer base.

我們相信 5022 和 5024 將使我們能夠瞄準更大比例的 '04 數字播放器市場，並應幫助我們贏得新客戶以及我們現有客戶群的新設計。

I'll shift gears a little bit and talk about some of the market trends. There are many emerging trends that are expected to fuel the demand for future personal media players, and inspire the development of new, innovative products. We believe we are on the forefront of developing these technologies.

我會稍微改變一下，談談一些市場趨勢。許多新興趨勢有望推動對未來個人媒體播放器的需求，並激發新的創新產品的開發。我們相信我們處於開發這些技術的最前沿。

First is the emergence of alternative voice to download music. We are seeing the pay-as-you-go model of downloading music has been very successful. The next step is to introduce alternative models to suit different people's needs. We believe, to that end, there could be a variety of different models that appeal to different music types.

首先是替代語音下載音樂的出現。我們看到下載音樂的現收現付模式非常成功。下一步是引入替代模型以適應不同人的需求。我們相信，為此，可能會有多種不同的模型來吸引不同的音樂類型。

Subscription services have been introduced in the past few months that only enable streaming music to any music the listener desires with one monthly rental fee but, more importantly, allows downloading the song to the personal media player under the same rental fee. We believe that subscription services will be particularly attractive to users with high-capacity players who can pay a monthly flat fee to access thousands of songs without buying each song individually.

訂閱服務在過去幾個月推出，只允許以每月租金將音樂流式傳輸到聽眾想要的任何音樂，但更重要的是，允許以相同的租金將歌曲下載到個人媒體播放器。我們相信訂閱服務對擁有高容量播放器的用戶特別有吸引力，他們可以每月支付固定費用來訪問數千首歌曲，而無需單獨購買每首歌曲。

In the future, we see the appeal also increasing as the content is expanded to include data from other types of audiobooks, short video clips, news reports, POD casts and photos. POD casts, for example, began as an underground movement but has quickly emerged and is now being used by companies such as General Motors, Sun Microsystems, and Nintendo. We see these as significant drivers for high-capacity players that need a powerful solution that can manage the content, catalog the data, and provide a robust and snap-in user experience. This is exactly where PortalPlayer excels.

未來，隨著內容擴展到包括其他類型的有聲讀物、短視頻剪輯、新聞報導、POD 演員表和照片的數據，我們認為吸引力也會增加。例如，POD casts 開始是一種地下運動，但很快就出現了，現在被通用汽車、Sun Microsystems 和任天堂等公司使用。我們將這些視為大容量播放器的重要驅動因素，這些播放器需要強大的解決方案來管理內容、編目數據並提供強大的嵌入式用戶體驗。這正是 PortalPlayer 擅長的地方。

The latest example is Microsoft's "Play for Sure," technology which has both elements -- a subscription model and a download model. We believe that PortalPlayer is a leader in making customers to design products off of both these technologies, and we currently have customers shipping products that incorporate both of these features.

最新的例子是微軟的“Play for Sure”技術，它具有兩種元素——訂閱模式和下載模式。我們相信，PortalPlayer 在讓客戶利用這兩種技術設計產品方面處於領先地位，並且我們目前有客戶交付包含這兩種功能的產品。

The move to high-resolution color screens is another trend that is clearly underway. In 2004 we introduced our photo edition platform, which enabled color displays in personal media players. In 2005, we expect color displays to transition from the high end to more mainstream products. And the new products that we introduce this year, we expect will help migrate the same feature set into the high-end, feature-rich, flash media player market. We believe that media players that incorporate this feature will be among the most attractive to prospective new buyers.

轉向高分辨率彩色屏幕是另一個明顯正在發生的趨勢。 2004 年，我們推出了照片編輯平台，該平台支持個人媒體播放器中的彩色顯示。 2005 年，我們預計彩色顯示器將從高端產品過渡到更主流的產品。我們預計今年推出的新產品將有助於將相同的功能集遷移到高端、功能豐富的閃存媒體播放器市場。我們相信，包含此功能的媒體播放器將成為對潛在新買家最有吸引力的媒體之一。

Another driver of color displays on personal media players is the proliferation of billions of digital photographs. As capacity increases and color displays become more sophisticated, media players are the perfect device to store additional photos, show them to friends and family in a slide show in a music-enhanced manner. The problem right now, however, is there isn't much interoperability and compatibility between these camera devices and digital music players. That is why we recently became a founding member of the pig sync [ph] consortium. The consortium is a voluntary industry effort of companies in the digital media player, digital camera, and portable data storage markets working to make it easier for consumers to transfer photos between digital cameras and car players and to and from consumer electronic storage and playback devices. PortalPlayer is contributing significant support to this initiative.

個人媒體播放器上彩色顯示的另一個驅動因素是數十億張數碼照片的激增。隨著容量的增加和彩色顯示變得更加複雜，媒體播放器成為存儲額外照片、以增強音樂的方式以幻燈片放映方式向朋友和家人展示的完美設備。然而，現在的問題是這些相機設備和數字音樂播放器之間沒有太多的互操作性和兼容性。這就是為什麼我們最近成為 pig sync [ph] 聯盟的創始成員。該聯盟是數字媒體播放器、數碼相機和便攜式數據存儲市場公司的自願行業努力，致力於讓消費者更輕鬆地在數碼相機和汽車播放器之間以及在消費電子存儲和播放設備之間傳輸照片。 PortalPlayer 為這項計劃提供了重要支持。

Our new 5022 device allows users to hook up their portable media player up directly to their digital camera. We see the ability to store and display digital photos as a growth driver to the media player market, and we'll continue to work with other industry leaders to help evolve the standards in technology to capitalize on this growth opportunity.

我們新的 5022 設備允許用戶將他們的便攜式媒體播放器直接連接到他們的數碼相機。我們將存儲和顯示數碼照片的能力視為媒體播放器市場的增長動力，我們將繼續與其他行業領導者合作，幫助發展技術標準以利用這一增長機會。

The last trend I'd like to talk about today is the development of unified devices. These are devices that incorporate the functionality of personal media players, cell phones, PDAs, wireless e-mail, and gaming devices. We believe that these types of devices will represent an exciting market opportunity down the road, and we are making the appropriate investment in this area today.

我今天要談的最後一個趨勢是統一設備的發展。這些設備結合了個人媒體播放器、手機、PDA、無線電子郵件和遊戲設備的功能。我們相信，這些類型的設備將代表未來令人興奮的市場機會，我們今天正在這一領域進行適當的投資。

So, in summary, we are having great success with our current customer base, our 5022 significantly raises the bar on our technology offering, our 5024 enables us to target an even larger portion of the overall market, and the momentum to remain strong in 2005. We intend to remain on the forefront of the technology development as well as a market leader.

因此，總而言之，我們在現有客戶群方面取得了巨大成功，我們的 5022 顯著提高了我們技術產品的標準，我們的 5024 使我們能夠瞄準整個市場的更大部分，並且在 2005 年保持強勁勢頭. 我們打算繼續走在技術發展的前沿，並保持市場領先地位。

We are happy to now open up the call to take your questions about our business, but I do want to remind everyone that it is our policy not to comment on specific customers' products or their roadmap. So, Operator, we are ready for questions.

我們很高興現在打開電話，回答您對我們業務的問題，但我想提醒大家，我們的政策是不對特定客戶的產品或他們的路線圖發表評論。所以，接線員，我們準備好提問了。

[OPERATOR INSTRUCTIONS] Randy Abrams, Credit Suisse First Boston.

[操作員說明] Randy Abrams，瑞士信貸第一波士頓。

To start off, I wondered if you could elaborate a little bit more on what is driving the strength and your outlook for second quarter? Maybe talk about the outlook, whether that's from existing products or whether you see some new products that's helping the outlook for the coming quarter?

首先，我想知道您是否可以詳細說明是什麼推動了第二季度的實力和您的前景？也許談談前景，無論是來自現有產品還是您是否看到一些有助於下一季度前景的新產品？

Overall, as we said, we see that strength in the quarter. It's reflected directly from our backlog. That backlog, as you know, with our concentration, is made up with some very large customers today. So, as I said, we reiterate the strength of that quarter is really driven from the backlog we have in front of us. So it is from both a broad range of customers, and that's probably the color I can give you on that.

總體而言，正如我們所說，我們在本季度看到了這種實力。它直接反映在我們的積壓工作中。如您所知，由於我們的專注，積壓的訂單是由今天的一些非常大的客戶組成的。因此，正如我所說，我們重申該季度的實力確實來自我們面前的積壓工作。所以它來自廣泛的客戶，這可能是我可以給你的顏色。

Okay, and turning over to the flash product -- just maybe provide an update on how it's been received from customers and how sampling activity is going.

好的，然後轉到閃存產品 - 只是可能提供有關如何從客戶那裡收到它以及採樣活動如何進行的更新。

Our customer reception has been strong. As you may know, the CS was the first time that we demonstrated this product both in stand-alone and in actual compelling mockup platforms that we have produced. As I said, reception has been strong. We are targeting a second half general release of that product, and we believe we're on track for that.

我們的客戶接待能力很強。您可能知道，CS 是我們第一次在獨立和我們製作的實際引人注目的模型平台上展示該產品。正如我所說，接收一直很強烈。我們的目標是該產品的下半年全面發布，我們相信我們正朝著這個目標前進。

Okay, and just one final question on the cell phone market -- Nokia just came out with a 4-gigabyte hard disk drive in a BOD [ph] phone. Maybe talk about the cell phone market a little bit more -- are you starting to see more engagement from Hensa [ph] vendors and carriers? And if you look at your chips that's now -- do you see that being able to sell into this space, or do you see additional functionality you need just to target that market?

好的，關於手機市場的最後一個問題——諾基亞剛剛在 BOD [ph] 手機中推出了 4 GB 硬盤驅動器。也許多談談手機市場——您是否開始看到 Hensa [ph] 供應商和運營商的更多參與？如果你看看你現在的芯片——你是否看到能夠在這個領域銷售，或者你是否看到你需要額外的功能來瞄準那個市場？

That was a great question, Randy. We think there's a lot of excitement in the market. We believe that the mobile phone experience could really benefit from a great music experience. So as you indicated there are some early products being announced that may be here the end of the year, high price point, low battery life. So the areas in our active conversations, where we're really focusing on, which makes a big difference, is both the user interface, the power of the platform, and the power consumption, and we're having great conversations with the key players in this marketplace.

這是一個很好的問題，蘭迪。我們認為市場上有很多令人興奮的地方。我們相信手機體驗可以真正受益於美妙的音樂體驗。因此，正如您所指出的，一些早期產品可能會在今年年底發布，價格高，電池壽命短。因此，在我們的積極對話中，我們真正關注的領域有很大的不同，包括用戶界面、平台的功能和功耗，我們正在與主要參與者進行很好的對話在這個市場。

Glen Yeung with Salomon Smith Barney.

Glen Yeung 與 Salomon Smith Barney。

Hi, this is Jim on behalf of Glen. In the past you've discussed that your Apple revenues have been about 88% and non-Apple about 12% in Q4. Can you give us an update for Q1 and the outlook.

嗨，我是代表 Glen 的 Jim。過去您曾討論過，您的 Apple 收入在第四季度約為 88%，非 Apple 收入約為 12%。您能給我們提供第一季度和展望的最新信息嗎？

Update is, as I said earlier in the prepared remarks, we sold more than $5 million of product to non-Apple customers this quarter, and I can't break it out for you, Jim, for the second quarter. We don't give that kind of guidance.

更新是，正如我之前在準備好的評論中所說，本季度我們向非 Apple 客戶銷售了超過 500 萬美元的產品，我無法為你解釋第二季度的情況，Jim。我們不提供那種指導。

Anything for year-end?

過年有什麼嗎？

For year-end, no, certainly not. The guidance is only for one quarter, and we don't break out by customer.

對於年終，不，當然不是。該指導僅適用於四分之一，我們不會按客戶細分。

Okay, can you comment on units and ASPs in Q1?

好的，你能評論一下第一季度的單位和平均售價嗎？

I'm sorry, again, I can't comment on ASPs. You know what we said before -- ASPs traditionally declined in the consumer electronic space. We said we see this on a SKU basis, 20% to 25% decline. As we add new products and new features, and with that new value, you can slow that down and decrease that decline to maybe 10% to 15%. As you reset the price for new products, and we have been very successful and accomplished something this quarter by when we introduced the 5022.

再次抱歉，我不能對 ASP 發表評論。你知道我們之前說過的——傳統上，消費電子領域的 ASP 下降了。我們說我們在 SKU 的基礎上看到了這一點，下降了 20% 到 25%。隨著我們添加新產品和新功能以及使用新價值，您可以放慢速度並將下降幅度降低到 10% 到 15%。當您重新設置新產品的價格時，我們在本季度推出 5022 時已經非常成功並取得了一些成就。

[OPERATOR INSTRUCTIONS] Shawn Slayton with SG Cowen Investment Bank.

[操作員說明] SG Cowen 投資銀行的 Shawn Slayton。

Hi, gentlemen, good afternoon -- a nice quarter, nice guidance. When would you expect -- maybe to Gary -- when would you expect meaningful revenue from your flash SIP? Could it hit this year, or are you setting the table for early '06?

嗨，先生們，下午好——一個不錯的季度，很好的指導。您預計什麼時候——也許對 Gary 來說——您預計什麼時候可以從您的閃存 SIP 中獲得有意義的收入？它會在今年出現嗎，或者你是在為 06 年初設置表嗎？

Of course, it all comes back to the definition of meaningful. As we said, we have planned, and we believe that we'll be seeing revenue in the second half of this year. As you know, from our breakdown of the flash market, we are still very much targeting the high-end, high-capacity, high-feature part of the market. We think the market is moving to us. We think, as the price point of flash memories are decreasing rapidly, the big picture for us is really positioning for 2006 where the sweet spot, we think, the high-capacity players move very much into our strength, which is high-capacity, large databases, large content count. So, yes, we'll see revenue this year, but the tone of your question is also very strong, and 2006 is where we think the market moves to us to be a very meaningful push for us into that space.

當然，這一切都回到了有意義的定義上。正如我們所說，我們已經計劃好了，我們相信我們將在今年下半年看到收入。如您所知，從我們對閃存市場的細分來看，我們仍然非常針對市場的高端、大容量、高功能部分。我們認為市場正在向我們移動。我們認為，隨著閃存的價格點正在迅速下降，我們的大局是真正定位到 2006 年的甜蜜點，我們認為，大容量玩家非常適合我們的強項，即大容量，大型數據庫，大量內容。所以，是的，我們今年會看到收入，但是你的問題的語氣也非常強烈，2006 年我們認為市場對我們來說是一個非常有意義的推動我們進入這個領域的地方。

Okay, thanks. Olav, I think there exists some investor jitters out there as to absolute inventory levels in flash and hard-drive players. So can you maybe characterize for us your visibility and comfort level as to inventory first, at your largest customer, and maybe can you characterize for us your visibility into the hard-drive player sales channel. So in other words help us understand consumption in the context of existing channel fill? Thanks.

好的謝謝。 Olav，我認為對於閃存和硬盤播放器的絕對庫存水平存在一些投資者的不安。因此，您能否向我們描述您在最大客戶處的庫存第一的知名度和舒適度，也許您能否向我們描述您對硬盤播放器銷售渠道的知名度。所以換句話說，幫助我們在現有渠道填充的背景下理解消費？謝謝。

I don't have the visibility, and I can't comment on our customers' channel inventory, but if we believe that there was excess inventory, we would not be seeing the strong backlog orders we have translated into our strong revenue guidance. So do you want to know what our inventory level --

我沒有可見性，也無法評論我們客戶的渠道庫存，但如果我們認為庫存過剩，我們就不會看到我們已經轉化為我們強大的收入指導的強大積壓訂單。那麼你想知道我們的庫存水平是多少——

We can obviously make the presumption that you have very good visibility into the levels of your ICs at your largest customer. That's kind of a no-brainer, I guess, right?

我們顯然可以假設您對最大客戶的 IC 水平有很好的了解。我想，這有點不明智，對吧？

We're very comfortable with the guidance that we've given. We work with the brand leaders that have very good material planning processes, who are very tight in that process, and as you know we're already in our 8th week of revenue recognition, you know, in accordance with our revenue recognition policy.

我們對我們提供的指導感到非常滿意。我們與擁有非常好的物料計劃流程的品牌領導者合作，他們在該流程中非常嚴格，而且如您所知，根據我們的收入確認政策，我們已經進入了第 8 週的收入確認。

Can you frame for us how you monitor what I'll call "finished goods." Your end customer, end brand, finished goods out there in the sales channel, thanks.

你能告訴我們你如何監控我稱之為“成品”的東西嗎？您的最終客戶、最終品牌、銷售渠道中的成品，謝謝。

Well, we have the same data access that you have. We certainly look at MPD data, we look at our own sales into the channel, and we have the same access to the data that you have when our customers release information about their software.

好吧，我們擁有與您相同的數據訪問權限。我們當然會查看 MPD 數據，查看我們自己在渠道中的銷售額，並且當我們的客戶發布有關其軟件的信息時，我們對您擁有的數據具有相同的訪問權限。

Okay, so with the information available, you're comfort level is high. I don't want to put words in your mouth, but is that what I'm hearing?

好的，所以有了可用的信息，你的舒適度很高。我不想把話放在你嘴裡，但這是我聽到的嗎？

Yes, that's what you're hearing.

是的，這就是你所聽到的。

Absolutely.

絕對地。

Jason Pflaum with Thomas Weisel Partners.

Jason Pflaum 與 Thomas Weisel Partners。

Yes, good afternoon, guys. Maybe just to follow on that question as far as your visibility into Q2. You mentioned that you have pretty strong backlog. What percentage of your guidance is in that backlog today? Or in other words how much more do you need to turn this quarter to hit your guidance?

是的，下午好，伙計們。就您對第二季度的可見性而言，也許只是為了解決這個問題。你提到你有相當多的積壓。今天的積壓工作中有多少百分比的指導？或者換句話說，您需要在本季度完成多少才能達到您的指導？

Well, I can't break that out for you, Jason. I can't tell you exactly whatever our sales are. Again, we're in the 8th week of our revenue recognition already . You know that we cut off our revenue recognition -- for Q1 we cut it off in the basically March 10. So everything after March 10 is Q2 revenue.

好吧，傑森，我不能替你解釋。我不能確切地告訴你我們的銷售額是多少。同樣，我們已經進入收入確認的第 8 週。你知道我們切斷了我們的收入確認——對於第一季度，我們基本上在 3 月 10 日切斷了它。所以 3 月 10 日之後的一切都是第二季度的收入。

Jason, I'll give you a little flavor on the graphics chip company. We are not experiencing the tremendous hockey stick type of dynamics in this business at this point, and so we don't want to characterize exactly the shape of that curve, but I can color it -- it is not like the type of experience you can see in other types of consumer electronics chip businesses, which are very hockey-stick loaded.

傑森，我給你介紹一下圖形芯片公司。在這一點上，我們還沒有在這項業務中體驗到巨大的曲棍球棒類型的動態，因此我們不想準確描述該曲線的形狀，但我可以給它上色——它不像你的那種體驗在其他類型的消費電子芯片業務中可以看到，這些業務非常棒。

I guess looking at your flash market strategy there, are you planning to expand your sales and distribution footprint at all to service a broader customer base? Are you really doing a rifle-shot approach, where you're targeting just the big guys out there?

我想看看你那裡的閃存市場策略，你是否打算擴大你的銷售和分銷範圍以服務更廣泛的客戶群？你真的是在用步槍射擊的方法，只針對那裡的大個子嗎？

It's building from the brand leaders. That is where we have excelled and really honed our skills, but you bring up a great point in that we are investing in Asia, in geographies with feet on the street in locations like Korea, like Taiwan, particularly. And so we are expanding on that, because, as you indicate, there are different customers, different strength of customers we can attack there. But we're putting some strength at the branded customers, but we are also expanding our footprint in Asia, because that will serve, as you know, brought us to the customers first, as well.

它是由品牌領導者打造的。這就是我們擅長並真正磨練我們的技能的地方，但你提出了一個很好的觀點，我們正在亞洲投資，在像韓國這樣的地方，特別是台灣這樣的地方，在街上的地區。因此，我們正在對此進行擴展，因為正如您所指出的，我們可以在那裡攻擊不同的客戶，不同的客戶實力。但是我們正在為品牌客戶提供一些力量，但我們也在擴大我們在亞洲的足跡，因為正如你所知，這也將把我們帶到客戶面前。

Okay, and then maybe just looking at the handset opportunity -- can you talk a little bit about the design cycles that you're seeing there and maybe just give a flavor for when you think the earliest you could see potential product in the market?

好的，然後也許只是看看手機的機會——你能談談你在那裡看到的設計週期，也許只是在你認為最早可以在市場上看到潛在產品的時候給你一個味道？

Yes, we think today you're seeing the first generation of the music phones -- relatively limited storage and much of the difficult user experience tied into music services over the air and through the PC or connector services. So for us it's also important to synchronize the timing of when the carriers and new types of providers will be providing these music services. So that really does start to point towards more 2006 timeframe. And that, frankly, is probably more driven by really getting a great end-to-end user experience than a particular chip availability. So I would point you toward a 2006 timeframe for, really, what we think will be a great music experience on a type of music-based cell phone.

是的，我們認為今天您看到的是第一代音樂手機——相對有限的存儲空間和許多困難的用戶體驗與無線音樂服務以及通過 PC 或連接器服務相關聯。所以對我們來說，同步運營商和新型供應商提供這些音樂服務的時間也很重要。所以這確實開始指向更多的 2006 年時間框架。坦率地說，這可能更多是因為真正獲得了出色的端到端用戶體驗，而不是特定芯片的可用性。因此，我將向您指出 2006 年的時間表，實際上，我們認為將在一種基於音樂的手機上提供出色的音樂體驗。

Okay, 2006. And then, finally, did you give gross margin guidance for Q2?

好的，2006 年。最後，您是否給出了第二季度的毛利率指導？

No, we haven't, Jason, but if you're asking about it, the long-term target model that we have is completely intact. So we expect our margin to be in the 41% to 44% range.

不，我們沒有，傑森，但如果你問這個問題，我們擁有的長期目標模型是完全完整的。因此，我們預計我們的利潤率將在 41% 至 44% 的範圍內。

Quinn Bolton with Needham and Company.

Quinn Bolton 與 Needham and Company。

Hey, guys, good quarter. A few questions -- Gary, you had some real interesting comments about the color screens moving to the mainstream market. I'm assuming that when you say mainstream, you're moving into the flash player market, and so I'm curious as you look across the competitive landscape, you look at the 5024 versus some of the other offerings out there in the market, what kind of color screen support do you have or do you have advantages over the, say, existing silicon in the market, and then I've got a few follow-ups.

嘿，伙計們，好季度。幾個問題——Gary，你有一些關於彩色屏幕走向主流市場的真正有趣的評論。我假設當你說主流時，你正在進入 Flash 播放器市場，所以我很好奇，當你縱觀競爭格局時，你看看 5024 與市場上的其他一些產品，你有什麼樣的彩色屏幕支持，或者你有優勢，比如說，市場上現有的矽片，然後我有一些跟進。

When I talk about the penetration of color, I think it's into the mainstream hard-drive market and into the high-end, high-capacity flash players, but the trends are clearly there. I think people love color, they love the vitality and such like.

當我談到色彩的滲透時，我認為它進入了主流硬盤市場，進入了高端、大容量的閃存播放器，但趨勢很明顯。我認為人們喜歡色彩，他們喜歡活力等等。

What we mean by our capability in the flash market is to be able to support screens up to your 2x3 inches -- either TFT or DSTN technology, and so in our technology supports really crisp, vibrant photo display or movie display -- on those pocket-sized displays.

我們在閃存市場的能力是指能夠支持高達 2x3 英寸的屏幕——TFT 或 DSTN 技術，因此在我們的技術中支持非常清晰、充滿活力的照片顯示或電影顯示——在那些口袋上尺寸的顯示器。

Is that a quarter VJA or even higher resolution? What kind of pixel resolution can you drive with the device?

那是四分之一 VJA 還是更高的分辨率？您可以使用該設備驅動哪種像素分辨率？

Quarter VJA is about right for the price point, because the interesting trend here is if you really push too high on the cost of those screens and on the resolution, you start to push them out of, really, the critical price points for personal media players. So QVJA provides a very nice experience and, again, the other great feature we have in our chipset is the ability to also simultaneously display on a TV, and customers are loving that approach to be able to have two different images -- one on the media player and one on the TV. So now we've had a great experience in music, we're adding that music experience to photos and to the movie clips, video clips that we are enabling.

Quarter VJA 在這個價位上是合適的，因為這裡有趣的趨勢是，如果你真的把這些屏幕的成本和分辨率推得太高，你就會開始把它們推到個人媒體的關鍵價位之外玩家。因此，QVJA 提供了非常好的體驗，而且我們芯片組的另一個重要功能是能夠同時在電視上顯示，客戶喜歡這種方法，因為它能夠擁有兩個不同的圖像——一個在媒體播放器和電視上的一個。所以現在我們在音樂方面有了很好的體驗，我們正在將這種音樂體驗添加到照片和電影剪輯中，我們正在啟用的視頻剪輯中。

Okay, moving to this flip between the 5022 and the 5020. You said 5022 was significant for us. I'm just trying to see if you give a little bit more color. I mean, is that double digits? Is it more than 10 but less than 50? Anything you can provide there. And a related question is when do you think the older 5020 product would start to go end of life? Is that a product that will still ship into 2006?

好的，轉到 5022 和 5020 之間的這個翻轉。你說 5022 對我們很重要。我只是想看看你是否給了更多的顏色。我的意思是，這是兩位數嗎？是不是超過 10 小於 50？你可以在那裡提供的任何東西。一個相關的問題是，您認為舊的 5020 產品何時會開始報廢？那個產品會在 2006 年上市嗎？

So the color and the split? No, I can't provide but I can tell you, yes, in double digits. Significant for me is certainly double digit. Somewhere between 10 and 90.

那麼顏色和分割呢？不，我不能提供，但我可以告訴你，是的，是兩位數。對我來說意義重大當然是兩位數。大約在 10 到 90 之間。

That's a pretty wide range, but okay. What about the 5020, can you comment as to when you think that may fall out of the revenue mix?

這是一個相當廣泛的範圍，但沒關係。 5020 怎麼樣，您能否評論一下您認為它何時可能會超出收入組合？

The tail will probably be going into the early '06. That's probably where the product will tail off -- second half is where, as you say, with these new product introductions, which is off to a really tremendous tripling of battery life, is a very compelling feature set that made a huge difference to the impact of our technology in this space. So I think, frankly, by the end of this year, the front end of next year, is where you'll see that diminish to a fairly small percentage of our business.

尾巴可能會進入 06 年初。這可能是該產品將退出的地方——正如你所說，下半年是這些新產品推出的地方，電池壽命真的是驚人的三倍，這是一個非常引人注目的功能集，對我們的技術在這個領域的影響。所以我認為，坦率地說，到今年年底，明年的前端，你會看到這在我們的業務中減少到相當小的比例。

Okay, and then just one final question on the market. Can you talk about the handset market in terms of whether you're seeing opportunities in, I guess, the nearer term for stand-alone MP3 player chips used only in an MP3 player application that would sit to, say, a camera processor or a media co-processor/apps processor, or do you see the 5022 or future generation of products really replacing or filling the entire apps processor or media co-processor role in the handsets?

好的，然後是市場上的最後一個問題。你能否談談手機市場，我猜你是否看到了機會媒體協處理器/應用程序處理器，或者您是否看到 5022 或下一代產品真正取代或填補手機中的整個應用程序處理器或媒體協處理器角色？

The answer is both of those. It's really dependent, frankly, on the time-to-market for some of the various players here in the market. The 5022 offers a significant power savings over solutions in the market today, and if you think about today's solutions in the handset market, they work really great when they're not transmitting. They work great in high transmit power, but as constant operation mode, which is how MP3 or music playback works, is really the forte that PortalPlayer has developed. So we're seeing interest in both those applications you described.

答案是這兩者。坦率地說，這真的取決於市場上一些不同參與者的上市時間。與當今市場上的解決方案相比，5022 提供了顯著的節能效果，如果您考慮當今手機市場中的解決方案，它們在不傳輸時工作得非常好。它們在高發射功率下工作得很好，但作為 MP3 或音樂播放工作方式的恆定操作模式，確實是 PortalPlayer 開發的強項。因此，我們看到了對您描述的這兩個應用程序的興趣。

Okay, great, and then the last quick one -- can you give a comment on where lead times are -- sort of, eight, 12 weeks, any comment you could give?

好的，太好了，然後是最後一個快速的——你能就交貨時間發表評論嗎——大概是八週、十二週，你可以發表任何評論嗎？

About midpoint between those two.

大約在這兩者之間的中點。

Dan Ernst with Hudson Square Research.

哈德遜廣場研究公司的丹恩斯特。

This is Frank calling in for Dan. Just one quick housekeeping question -- the other income seemed a little bit high around $900,000. Could you explain why that was?

這是弗蘭克給丹打電話的。只是一個簡單的家務問題——另一個收入似乎有點高，大約 900,000 美元。你能解釋一下為什麼會這樣嗎？

It's mostly interest. We have $137 million invested, and yields are, as you know, doing much better now. So it's mostly interest income, Dan.

主要是興趣。我們有 1.37 億美元的投資，正如你所知，現在的收益率要好得多。所以主要是利息收入，丹。

Okay, that makes sense. And, secondly, just -- I know Q2 is usually a little bit slower for electronics, but given that the MP3 market is not really penetrated that highly, are you comfortable with your inventory level going into Q2? I know you said your days inventory outstanding is around 30 days, long term. That's what you want it at. Is that still a good level considering the strength you see going into --

好吧，這是有道理的。其次，我知道第二季度電子產品通常會慢一點，但鑑於 MP3 市場的滲透率並沒有那麼高，你對進入第二季度的庫存水平感到滿意嗎？我知道您說您的未清庫存天數約為 30 天，長期而言。這就是你想要的。考慮到你所看到的力量，這仍然是一個很好的水平——

Absolutely, we believe we're at the right level, and we feel good about that, very good about that.

當然，我們相信我們處於正確的水平，我們對此感覺很好，非常好。

Okay, and, lastly, I know that the handset question has been kind of asked a lot. I'll just try one more time. Given that Motorola is looking at releasing an iTune [ph] possibly by the end of the year, probably more likely in 1Q and keeping the hard drive in their phone and DVDH capabilities on your chip -- if the video market for handsets were to materialize in early to mid 2006, does that necessarily mean you would have to start sampling chips with any potential handset vendors by the end of this year or is there some other way of looking at in a timeframe --

好的，最後，我知道手機問題被問了很多。我再試一次。鑑於摩托羅拉正在考慮可能在今年年底之前發布 iTune [ph]，可能更有可能在第一季度發布，並將硬盤驅動器保留在手機中，並將 DVDH 功能保留在芯片上——如果手機視頻市場能夠實現的話在 2006 年初到年中，這是否必然意味著您必須在今年年底之前開始向任何潛在的手機供應商提供芯片樣品，或者在某個時間範圍內是否有其他方式來看待——

No, you're not far off the timeframe. The answer is, I think, someone asked the earlier question -- is the architecture you would use for that chipset implementation, and we can be positioned, depending on the customer requirements, in either of those two actual socket positions. So what we learned, I think, is being a pioneer, frankly, in the MP3 space for the last five years, is you have to make sure that the complete end-to-end experience is put together, and I think we learned that very actively in the MP3 market of understanding how to put together both tying into the applications, the firmware, and the chip, and we think that customers on the cell phone are going to want a great music experience. So that's what we're focusing, and we're making sure we're making the right investments to do that for us.

不，你離時間表不遠了。答案是，我認為，有人問過前面的問題——您將用於該芯片組實現的架構，我們可以根據客戶要求定位在這兩個實際插槽位置中的任何一個位置。所以我認為，坦率地說，在過去五年中，我們學到的是成為 MP3 領域的先驅，你必須確保將完整的端到端體驗放在一起，我認為我們學到了在 MP3 市場上非常積極地了解如何將應用程序、固件和芯片結合在一起，我們認為手機上的客戶將需要出色的音樂體驗。所以這就是我們關注的重點，我們正在確保我們做出正確的投資來為我們做到這一點。

Carter Driscoll with IRG Research.

IRG Research 的 Carter Driscoll。

Good afternoon, gentlemen, well done. Many of my questions have been answered, but I want to take a step back and ask indirectly what you're seeing in terms of NAN [ph] and microdrive prices and when you're seeing the continued deceleration in pricing trends and whether you think that bodes well for continued MP3 player pricing to come down into the sweet spot and drive more demand at the higher end -- just a top-level question to start off with, and then I have a follow-up.

下午好，先生們，幹得好。我的許多問題都已得到解答，但我想退後一步，間接詢問您在 NAN [ph] 和微驅動器價格方面看到的情況，以及當您看到定價趨勢持續減速時，您是否認為這預示著 MP3 播放器的持續定價會下降到最佳位置並推動更高端的更多需求——這只是一個開始的頂級問題，然後我有一個後續行動。

Are you asking on the hard drive or the micro hard drive versus the flash?

你問的是硬盤驅動器還是微型硬盤驅動器與閃存？

Just general pricing for the storage medium itself and where you see it directly translating into the ability of the vendors to bring down their own prices and drive unit growth that we're all forecasting.

只是存儲介質本身的一般定價，您可以看到它直接轉化為供應商降低自己的價格並推動我們都預測的單位增長的能力。

Well, as you know, the hard drive market itself has a smaller volume base, smaller number of players, but we are now starting to see the big players really step into stride, and we're seeing announcements of their suppliers increasing their production through the year. So we think you'll see steady decline on the micro hard drive prices, not significant steady declines, but also the introduction of new capacity points, for example, say, 10-gig in this type of space.

好吧，如您所知，硬盤市場本身的容量基數較小，參與者數量較少，但我們現在開始看到大型參與者真正邁出步伐，我們看到他們的供應商宣布通過以下方式增加產量那一年。因此，我們認為您會看到微型硬盤驅動器價格穩步下降，而不是顯著的穩定下降，而且還會引入新的容量點，例如此類空間中的 10-gig。

Also, there's been announcements from companies like Western Digital, their intent to enter this market as well, so that is generally increasing the competition, increasing the availability, and increasing the price competition in the hard drive space.

此外，西部數據等公司也發布了公告，他們也打算進入這個市場，因此這通常會增加競爭，增加可用性，並增加硬盤空間的價格競爭。

On the flash market, from a price point of view, is much more vibrant. You're looking at between 40% and 45% price decline in the flash market, and we think that's going to continue significantly in the second half as well. Again, that's why our strategy of not chasing the flash market down into the low flash capacity sizes -- half a gig, 256 -- we think is a smart one, because we think end of this year, 2006, you're going to see really 1 and 2-gigabyte be the sweet spot for the flash MP3 players.

在閃存市場上，從價格上看，是充滿活力的。你看到閃存市場的價格下降了 40% 到 45%，我們認為這種情況在下半年也將繼續顯著下降。再說一次，這就是為什麼我們不將閃存市場推向低閃存容量的策略——半個 gig，256——我們認為這是一個明智的策略，因為我們認為今年年底，2006 年，你會看到真正的 1 和 2 GB 是 Flash MP3 播放器的最佳選擇。

Could you comment at all, again, you're a little bit indirectly removed from this, but demand geographically and where you see it accelerating or decelerating versus your own expectations?

你能否再次發表評論，你有點間接地遠離了這一點，但在地理上的需求以及你認為它在哪裡加速或減速而不是你自己的預期？

It really hasn't made much of a mix. I think there is always, as some of the new music services get launched by some of the very large players in this market that stimulates demands within different locations, if someone -- you know, a new music start in Australia or in Central Europe obviously helps that from a regional point of view. We still see the U.S. as a very strong driver for the hard drive MP3 market. Career [ph] just loves new innovation, and so the career market, in general, laps up all types of variety of MP3 players, and then the rest of the world tends to be more cost-conscious. So that I would paint as the general picture, and it's fairly consistent, so far, quarter-over-quarter.

它真的沒有太多的混合。我認為總有一些新的音樂服務由這個市場上的一些非常大的玩家推出，刺激不同地區的需求，如果有人 - 你知道，顯然在澳大利亞或中歐開始了新的音樂從區域的角度來看，這是有幫助的。我們仍然將美國視為硬盤 MP3 市場的強大推動力。 Career [ph] 只喜歡新的創新，因此，Career 市場通常會吸引各種類型的 MP3 播放器，然後世界其他地區往往更加註重成本。這樣我就可以描繪出總體情況，到目前為止，季度環比情況相當一致。

Are you at all concerned or, obviously, you've taken this into account with your strategy, but attempts in the past, especially in the handset market, to integrate multimedia functionality or beyond adding one or two main applications such as potentially adding video or music to the cell phone itself has had mixed success, at best. What makes you more confident that we've reached a critical point, which, you know, battery management has always been a huge issue, going forward. What gives you confidence that we're at that critical juncture, that we're actually going to introduce products that consumers aren't going to be disappointed with yet again?

您是否完全擔心，或者顯然您已經在策略中考慮到了這一點，但過去曾嘗試集成多媒體功能，或者在添加一兩個主要應用程序（例如可能添加視頻或音樂到手機本身也取得了喜憂參半的成功，充其量是。是什麼讓你更有信心我們已經達到了一個關鍵點，你知道，電池管理一直是一個巨大的問題，未來。是什麼讓您相信我們正處於關鍵時刻，我們實際上將推出消費者不會再次失望的產品？

Well, I think you echo exactly the point I was making. It's pulling together the complete solution and knowing how to both deliver encrypted content in a very low-power profile, having produced very snappy user interfaces, how to give people common user interfaces between, for example, say, their PC and their handset. And these are all areas that we have excelled in as we've built our personal media player business over the last five years. We have the power optimized solutions now for photos, for music, we have integrated camera solutions, we have the video clip capabilities, and so our leadership and our management plus the real deep insight into end-to-end services, we think offers, for us, a very interesting competitive advantage as we talk to the players in the market.

好吧，我認為你完全符合我的觀點。它整合了完整的解決方案，並且知道如何以非常低的功耗配置加密內容，產生非常靈活的用戶界面，如何為人們提供通用的用戶界面，例如，他們的 PC 和他們的手機。這些都是我們在過去五年中建立個人媒體播放器業務時所擅長的領域。我們現在有針對照片、音樂的功率優化解決方案，我們有集成的相機解決方案，我們有視頻剪輯功能，所以我們的領導和我們的管理加上對端到端服務的真正深入洞察，我們認為提供，對我們來說，當我們與市場參與者交談時，這是一個非常有趣的競爭優勢。

And just a last question for Olav -- can you break out the cash from operations into a couple of components -- one, possibly the stock option exercise contribution?

奧拉夫的最後一個問題——你能否將運營中的現金分成幾個部分——一個，可能是股票期權行使貢獻？

Our stock option exercise contribution was absolutely minimal. Mostly from our net income and then certainly you see that inventory and then some noncash working capital components have changed. There is probably $7 million to $8 million from net income and maybe $5 million to $6 million from changes in noncash working capital.

我們的股票期權行使貢獻絕對是微乎其微的。主要來自我們的淨收入，然後您當然會看到庫存以及一些非現金營運資金成分發生了變化。淨收入可能有 700 萬至 800 萬美元，非現金營運資本的變化可能有 500 萬至 600 萬美元。

Jason Paraschac with Kaufman Brothers Equity Research.

考夫曼兄弟股票研究公司的 Jason Paraschac。

A question on the second quarter guidance -- can you give us some color there in terms of whether you think it's for new product inventory builds or is that your customers planning for a very strong summer ramp, and so they're building inventory ahead of that, or do you think that we're just seeing a very strong linear ramp through the year in terms of consumer demand?

關於第二季度指導的一個問題——你能否給我們一些顏色，看看你認為它是為了新產品庫存的建立，還是你的客戶計劃非常強勁的夏季坡道，所以他們正在提前建立庫存那個，或者你認為我們只是在消費者需求方面看到了一個非常強勁的線性增長？

If we believed this is excess inventory, we wouldn't be seeing those strong backlog orders. So we think we're not seeing extraordinary differences or information back from our primary vendors. As Olav indicated, we have strong, good relationships with very material planning aspects. So if we believed there was excess inventory, we wouldn't be seeing these strong backlogs. So and that, frankly, has translated directly into our strong revenue guidance for this next quarter -- for this Q2 quarter.

如果我們認為這是庫存過剩，我們就不會看到那些強勁的積壓訂單。因此，我們認為我們沒有看到來自主要供應商的異常差異或信息。正如 Olav 所指出的，我們在非常重要的計劃方面有著牢固、良好的關係。因此，如果我們認為庫存過剩，我們就不會看到這些強大的積壓。坦率地說，這已經直接轉化為我們對下個季度的強勁收入指導 - 對於這個第二季度。

So should I take away from that that you believe that consumer demand is just ramping in a linear fashion that strongly?

那麼我是否應該擺脫你認為消費者需求正以線性方式強勁增長的觀點？

I'm not sure I can put a linear number on that. As you saw from the Gartner numbers, we are still in a great accelerating and growing MP3 market. The numbers forecasts from Gartner are showing well, and, as we indicated, our guidance is better than seasonal as compared to a similar electronics trend. That's because the MP3 market is vibrant and, of course, blowing our own trumpet here, we have great products designed into great customer products, and they're winning in the market.

我不確定我可以在上面加上一個線性數字。正如您從 Gartner 的數據中看到的那樣，我們仍處於一個快速增長的 MP3 市場。 Gartner 的數字預測顯示良好，而且正如我們所指出的，與類似的電子趨勢相比，我們的指導優於季節性。那是因為 MP3 市場充滿活力，當然，我們在這裡吹響了我們自己的號角，我們將優秀的產品設計成優秀的客戶產品，並且他們在市場上獲勝。

Does that include new products that you're selling into now that will be released later on in the year?

這是否包括您現在銷售的新產品，這些新產品將在今年晚些時候發布？

This quarter and the effect is really on a quarter-by-quarter basis. The second half we'll talk about when we get to the second half. In this market, I don't believe that people really build long chains here in terms of building shelf life here. So, no, we think this reflects business opportunities that our customers are expecting.

本季度的效果實際上是逐季度的。下半場我們將在下半場討論。在這個市場上，我不相信人們真的在這裡建立長鏈來建立保質期。所以，不，我們認為這反映了我們的客戶所期待的商機。

Okay, and then just two housekeeping questions -- just trying to clarify on the blended ASP question. Olav, I know you talked about you have a 10% to 15% blended ASP decline, but given the strength -- apparent strength of the 5022, is it possible that ASPs, on a blended basis, actually increased this quarter?

好的，然後只是兩個內務問題——只是試圖澄清混合的 ASP 問題。奧拉夫，我知道你說過你的混合 ASP 下降了 10% 到 15%，但考慮到 5022 的強度——表觀強度，本季度的混合平均售價是否有可能實際增加？

Let me just answer it this way -- ASPs do decline in our business. I mean, there could be a quarter where you could see a flat ASP development depending on when you introduce a product and what the additional feature is. Q1, I think it's exactly in line with what we have guided to.

讓我這樣回答 - ASP 在我們的業務中確實下降了。我的意思是，根據您何時推出產品以及附加功能是什麼，您可能會在四分之一的時間看到平坦的 ASP 開發。 Q1，我認為這完全符合我們的指導方針。

Okay, thank you, then just a question on the flash product the second half of this year -- do you think that there is going to be -- or can you give us any color on a difference in the gross margin of that product versus the hard drive products?

好的，謝謝，然後問一個關於今年下半年閃存產品的問題——你認為會有——或者你能告訴我們該產品的毛利率與毛利率的差異嗎？硬盤產品？

We don't break out individual products by product set. We are confident of the long-term model that we've guided and have frankly building a business to -- 41% to 44%, and that we have given guidance through the rest of this year at this point.

我們不會按產品集劃分單個產品。我們對我們所指導的長期模式充滿信心，並且坦率地說，我們已經建立了 41% 到 44% 的業務，並且我們已經在今年餘下的時間裡給出了指導。

Randy Abrams, Credit Suisse First Boston.

Randy Abrams，瑞士信貸第一波士頓。

Just a follow-up with the cash you're generating this quarter and then potentially in the coming quarter -- do you have any plans to potentially even buyback stock with some of the lockup just to try to soak up some of the shares that might be coming up? Maybe better talk about what your targeted cash levels might be?

只是對您在本季度以及可能在下一季度產生的現金的後續行動-您是否有任何計劃甚至可能回購一些鎖定的股票，以嘗試吸收一些可能會來嗎？也許更好地談談您的目標現金水平可能是多少？

There is no plan that I can talk about right now about a buyback program. We just went public, there's cash, there's a lot of opportunities out there, we're very happy that we generated the amount of cash. I don't know exactly what -- I can't give you any guidance on any planning on what our target level is and what we would actually enter into such an agreement. It's a little early, and we're still executing our plan right now, and we're very happy with our Q1 results with our Q2 guidance. So when the time comes, I'll make the appropriate disclosures.

我現在沒有可以談論回購計劃的計劃。我們剛剛上市，有現金，有很多機會，我們很高興我們產生了這麼多現金。我不知道具體是什麼——我無法就我們的目標水平是什麼以及我們實際達成這樣的協議的任何計劃提供任何指導。現在還為時過早，我們現在仍在執行我們的計劃，我們對我們的第一季度業績和第二季度指導感到非常滿意。因此，當時機成熟時，我會做出適當的披露。

Chris Chaney with Stanford Group Brokerage.

斯坦福集團經紀公司的克里斯·錢尼。

Thank you and great quarter, guys. I just wanted to ask a question about your supply chain and that is -- you guys have crossed over the threshold now of well over 10 million units per year at which point the [inaudible] and LSI Logic relationships maybe aren't quite as necessary as they were. Do you have any plans coming up that you can talk about at all to perhaps help protect your gross margin? If ASPs decline more than you expect or anything like that to sort of boost overall profitability in that area?

謝謝你們，很棒的季度，伙計們。我只是想問一個關於你們供應鏈的問題，那就是——你們現在已經跨越了每年超過 1000 萬件的門檻，此時 [聽不清] 和 LSI Logic 的關係可能並不那麼必要像他們一樣。您是否有任何計劃可以談論，以幫助保護您的毛利率？如果 ASP 下降幅度超出您的預期，或者類似的情況會提高該領域的整體盈利能力？

The answer to that is our existing supplies, as you indicated, are actually proving to be very nimble and quite flexible partners. They know that they have to respond to market changes as well. So they're doing a good job for us. They are doing a good job on this cost reduction plans we have in place, but, as you said, in this last quarter we actually had started to make the headcount investments and some of the other critical investments we need to beef up our operational capability in-house, and we'll be looking at the transition, as you alluded to, to what's got the COT technology real, a part-by-part basis, as we go through the year. So our existing partners are serving us well. They're being good, flexible partners, but we have started to add the headcount that will be needed to make a decision on a SKU-by-SKU basis to a transition to COT.

答案是我們現有的供應，正如您所指出的，實際上被證明是非常靈活和非常靈活的合作夥伴。他們知道他們也必須對市場變化做出反應。所以他們為我們做得很好。他們在我們制定的降低成本計劃方面做得很好，但是，正如你所說，在上個季度，我們實際上已經開始進行員工人數投資和我們需要加強運營能力的其他一些關鍵投資正如你所提到的那樣，我們將在一年中逐個部分地研究使COT技術真正成為現實的過渡。因此，我們現有的合作夥伴為我們提供了良好的服務。他們是優秀、靈活的合作夥伴，但我們已經開始增加員工人數，以便在逐個 SKU 的基礎上做出決定以過渡到 COT。

Shawn Slayton, SG Cowen.

肖恩·斯雷頓，SG Cowen。

Gary, you mentioned video clips. On an industry basis and not at a customer's specific level here, is there a rush to bring new MPEG4-enabled media players to market this Christmas? Or do you feel like the industry is still getting its sea legs as to subscription-based audio this year, and MPEG4 is most likely an '06 event? Thanks.

加里，你提到了視頻剪輯。在行業基礎上而不是在客戶的特定層面上，今年聖誕節是否急於將新的支持 MPEG4 的媒體播放器推向市場？或者您是否覺得今年業界在訂閱式音頻方面仍處於領先地位，而 MPEG4 很可能是 06 年的盛事？謝謝。

The answer is it really is customer-specific. I think as customers start to look at how they differentiate between each other, we do see quite different trends. In Asia, for example, there's quite an excitement around video type of content, and the content that we think is the most valuable and most pertinent for a personal media player is clips that go between 15 seconds and 15 minutes. And so out of our Asia customer base, where customers are more willing to download content in a slightly more haphazard manner, we're seeing interest. I was in Korea recently, and we saw significant interest there.

答案是它確實是客戶特定的。我認為隨著客戶開始關注他們如何區分彼此，我們確實看到了截然不同的趨勢。例如，在亞洲，視頻類型的內容非常令人興奮，我們認為對個人媒體播放器最有價值和最相關的內容是 15 秒到 15 分鐘之間的剪輯。因此，在我們的亞洲客戶群中，客戶更願意以稍微隨意的方式下載內容，我們看到了興趣。我最近在韓國，我們在那裡看到了極大的興趣。

To your point, not having an integrated, easy to use type of service, that probably is '06. And so we see both. It's a great position to be in.

就您而言，沒有集成的、易於使用的服務類型，這可能是 06 年。所以我們兩者都看到了。這是一個很好的位置。

Shaw Wu, American Technology Research.

Shaw Wu，美國技術研究中心。

Okay, thanks, just some questions on the 5024 -- is this product aimed solely at flash or will it also be used for hard drives? And then a little better color as to the timing of second half. Is that the first half of the second half or the second half of the second half? Thanks.

好的，謝謝，關於 5024 的一些問題 - 這個產品是專門針對閃存還是也將用於硬盤驅動器？然後對於下半場的時間安排有更好的色彩。是下半場的上半場還是下半場的下半場？謝謝。

I'm just smiling here on the timing aspect. The 5024 is what is optimized for the flash market. Actually, by using the second 0.35 micron chip has all the great power levels and power hours you need to play on the flash player -- the display, back light, power USB 2.0 -- so 5024 is the specific, well-targeted point for a complete high-end, flash play solution.

我只是在時間方面微笑。 5024 針對閃存市場進行了優化。實際上，通過使用第二個 0.35 微米芯片，您可以在 Flash 播放器上播放所需的所有強大功率級別和功率時間——顯示器、背光、USB 2.0 電源——因此 5024 是特定的、有針對性的點完整的高端 Flash 播放解決方案。

In terms of the second-half guidance, frankly, I'm not going to give you any more color at this point. Wait and see, is the answer.

坦率地說，就下半年的指導而言，我現在不會再給你任何顏色了。等等看，就是答案。

Okay, and just a quick follow-up, if I may. In terms of next-generation hard drive platforms, do you see -- you say that you're 5022 supports MPEG, video, I guess, with the co-processor. Any plans on having that fully integrated?

好的，如果可以的話，只是快速跟進。在下一代硬盤平台方面，你看到了嗎——你說你的5022支持MPEG，我猜是視頻，帶有協處理器。有沒有完全集成的計劃？

Actually, we fully support motion JPEG and MPEG 4 in the native mode today without any external support there. What we have introduced through a defined co-processor interface is if you really want to push the performance levels of video, it will take significant power, frankly. We now interface into solutions out of the market to give you really a very high-performance solution. So mainstream video we have covered in our integrated chip today.

實際上，我們今天在本地模式下完全支持運動 JPEG 和 MPEG 4，而沒有任何外部支持。我們通過定義的協處理器接口介紹的是，如果你真的想提升視頻的性能水平，坦率地說，它需要很大的功率。我們現在與市場之外的解決方案對接，為您提供真正高性能的解決方案。所以我們今天在集成芯片中涵蓋了主流視頻。

Sorry, just one last one. Do you give the number of units you ship in the quarter?

抱歉，只剩最後一個了。您是否提供了本季度出貨的單位數量？

No, as a policy to now we've actually declined to give color both on ASPs and volumes.

不，作為一項政策，我們實際上拒絕在 ASP 和數量上給出顏色。

All right, I think at this point we thank you again, all of you, for joining us today. It was a great pleasure to have you on the call and for your interest. We plan to be on the road meeting with investors quite often during the next few months. Olav will be attending a Merrill Lynch technology gathering on May 3rd. We'll both be present at the CIBC World Markets Communications and Technology Conference on May 11th as well as the Salomon Smith Barney conference on June 2nd, and, of course, the Western Annual Technology Conference on June 7th. So we both look forward to seeing many of you at these conferences and, with that, we'll conclude this conference call. Thank you.

好的，我想在這一點上，我們再次感謝你們，你們所有人，今天加入我們。很高興有您接聽電話並表達您的興趣。我們計劃在接下來的幾個月裡經常與投資者會面。 Olav 將參加 5 月 3 日舉行的美林技術聚會。我們都將出席 5 月 11 日的 CIBC 世界市場通信和技術會議以及 6 月 2 日的 Salomon Smith Barney 會議，當然還有 6 月 7 日的西方年度技術會議。因此，我們都期待在這些會議上見到你們中的許多人，並且，我們將結束這次電話會議。謝謝你。

Ladies and gentlemen, this does conclude today's teleconference. We appreciate your participation in today's discussion, and you may disconnect your phone lines at this time.

女士們，先生們，今天的電話會議到此結束。感謝您參與今天的討論，此時您可以斷開電話線。