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 年第一季財報電話會議。 今天的通話正在錄音，通話結束後兩小時即可播放。 若要存取重播，請撥打 719-457-0820，密碼為 5879481。現在，為了開場白，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。 本次電話會議除了可透過電話重播外，還將透過 PortalPlayer 網站 www.PortalPlayer.com 的投資人關係頁面進行網路直播。 今天早些時候，我們發布了收益新聞稿並將其提交給美國證券交易委員會。 新聞稿也可在 PortalPlayer 的網站上查閱。 新聞稿包含某些非 GAAP 財務指標，我們將在今天的電話會議上討論這些指標，以及根據 GAAP 計算的最直接可比較的財務指標以及這些指標之間差異的對帳。

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.

今天與我一起出席的是 PortalPlayer 總裁兼執行長加里·約翰遜 (Gary Johnson) 和 PortalPlayer 財務長 Olav Carlsen。 我首先將宣讀我們的安全港聲明。

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，今天電話會議上的陳述不是歷史事實，而是《私人證券訴訟改革法案》所定義的前瞻性陳述。這些前瞻性陳述包括但不限於有關未來計劃和成長發展努力、產品和技術的推出、MP3 播放器市場的成長和趨勢、我們和客戶的市場領導地位、對我們產品的需求、我們的產品和技術的預期效益以及未來財務結果的陳述，包括收入、淨收入、費用、支出、平均銷售價格、股票薪酬費用、稅率、現金流量和未來研發。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有重大差異。請參閱今天的收益報告和我們向美國證券交易委員會提交的截至 2004 年 12 月 31 日的年度 10-K 表，以及我們不時提交給美國證券交易委員會的報告中有關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的風險因素的信息。這些前瞻性陳述僅代表截至本文發布之日的觀點。 PortalPlayer 不承擔任何更新這些前瞻性聲明的意圖或義務。此外，本次電話會議屬於 PortalPlayer 的財產，未經本公司書面許可不得錄製或轉播。現在我想把電話交給加里，請他作開場發言。 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。 我們又一次度過了一個美好的季度。 第一季的營收比去年同期成長了四倍多，與上個季度旺季期間創下的創紀錄收入相當。 本季成長的一個關鍵驅動力是我們推出的新款 PP5022 晶片，我將在幾分鐘內對其進行更詳細的描述。

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.

眾所周知，消費緊俏的產業在旺季過後的第一季通常會經歷高達 30% 的連續下滑。 因此，我們對今天報告的結果非常滿意。 高收入結果還表明我們在第一季實現了創紀錄的 1,360 萬美元的現金流。 此外，如果排除第四季和第一季出售先前增值材料對利潤率的一次性影響，我們的毛利率將比上季提高 40 個基點。 Olav 稍後會向您提供更多詳細資訊。

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，我們向客戶展示了我們推向市場的兩款新型半導體裝置的一些革命性新功能，在市場上引起了相當大的轟動。 我們相信這些特色設備將對我們今年剩餘時間的成長做出重大貢獻。 我們的新型 5022 系統單晶片可將當今硬碟媒體播放器的電池壽命延長三倍，並且還可以支援大容量快閃媒體播放器。

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.

我們新的 5024 系統級封裝已於第一季開始提供樣品，這是我們第一款將媒體處理器與音訊、汽車管理和電池充電功能整合在一個封裝中的 MP3 閃存播放器設備。 憑藉 5022 和 5024，我們相信我們可以擴大硬碟技術的領先地位，並瞄準 2004 年個人媒體播放器市場（包括硬碟和快閃記憶體）的更大份額。

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 最近發布了新硬碟和閃存數位音訊播放器的估計數據。 根據他的報告，預計2005年硬碟市場的出貨量將比2004年成長104%，達到2,800萬台以上。 預計 2005 年快閃記憶體市場將比去年同期成長 74%，達到近 4,600 萬台。幾分鐘後，我將更詳細地介紹我們的新產品、第一季的進展以及一些關鍵的市場趨勢。 但首先我將把電話轉給奧拉夫，他將向您介紹我們第一季財務狀況的詳細資訊。

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 年第一季再次實現了顯著的同比增長。 我們非常高興地報告，本季的淨收入為 4,460 萬美元，比去年同期的 1,020 萬美元收入高出四倍多，與 2004 年第四季創下的 4,470 萬美元的歷史最高收入大致相同。

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.

正如加里剛才提到的，每年的第四季度通常是消費電子市場最強勁的季度，因此我們很高興看到，即使在傳統上較為疲軟的季度，對採用我們技術的產品的需求仍然如此強勁。 再次，本季度，我們看到了來自最大客戶以及其他客戶的強勁需求，我們從這些客戶那裡獲得了超過 500 萬美元的收入。 第一季度，我們的所有收入均來自基於硬碟的媒體播放器的出貨量。 我們在本季開始大量出貨新的 5022 系統單晶片，該產品的需求非常強勁。 5022 的收入已經占到我們第一季總收入的很大一部分，所以，正如您所見，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.

第一季淨收入為 780 萬美元，而去年同期淨虧損為 240 萬美元。 2005 年第一季淨收入為每股收益 0.31 美元（基於 2,500 萬股加權平均流通股），而去年同期每股虧損 15.37 美元（基於約 157,000 股加權平均流通股）。 當然，這兩個季度的股票數量有顯著差異，是因為 2004 年第一季我們仍然是一家私人公司。

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 年第四季的淨收入為 1,050 萬美元，或每股攤薄收益 0.50 美元（基於該季度 2,110 萬股加權平均股份），而第四季度與 2005 年第一季之間的股份數量增加是由於股份數量為加權平均值。 因此，我們在 11 月下旬 IPO 中發行的股票僅部分影響了第四季度的平均水平，但完全計入了我們第一季的數據。

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，我們仍結轉約 600 萬美元的可自由支配的淨營業虧損。 基於我們目前強勁的財務業績和對 2005 年剩餘時間的業務前景，以及我們正在快速用完大部分淨營業收入 (NOL) 的事實，我們從上個季度開始以 25% 的有效稅率計提稅款。 相比之下，我們上個季度採用的替代最低稅稅率僅為 3%。

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.

不計入 384,000 美元的非現金股票薪酬費用，2005 年第一季的非 GAAP 淨收入為 820 萬美元，或每股攤薄收益 0.33 美元，而 2004 年第一季的非 GAAP 淨虧損約為 434,000 美元，或每股虧損 2.77 美元。 2004 年第四季非 GAAP 淨收入為 1,120 萬美元，即每股 0.53 美元。 在我們的收益報告中，我們提供了 GAAP 數據和非 GAAP 數據之間的詳細對賬，其中詳細列出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.

現在讓我討論一下本季損益表的一些信息，然後我將轉到資產負債表。 從各方面來看，第一季都取得了巨大的成功。 我們第一季的毛利率為43.1%。 這完全符合我們 41% 至 44% 的長期模型，而 2004 年第四季這一數字為 43.4%。上個季度，即第四季度，我們的毛利率因先前註銷材料的銷售而獲得了 90 個基點的正面影響。 然而，在第一季度，先前註銷的材料的銷售僅對我們的整體毛利率產生了 20 個基點的有利影響。 因此，如果消除對兩個季度的影響，我們目前產品的毛利率實際上比上季上升了 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.

正如我們過去所說的那樣，我們預計單一 SKU 的價格將同比下降 20% 至 25%，但我們預計混合產品組合的平均售價將同比僅下降 10% 至 15%，因為我們能夠為新產品設定更高的價格，而我們本季度已經實現了這一目標。

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.

第一季營運費用為 970 萬美元，其中包括研發和銷售、一般及行政費用增加 120 萬美元，但本季的庫存費用較低，抵銷了這一增加。 那麼讓我來為您分解一下——大部分額外支出（約 110 萬美元）分配給了我們的研發活動，研發支出為 640 萬美元。 這佔營收的 14%，低於我們的 16% 至 17% 的目標，主要原因是本季收入較高。

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型費用水平增加，但更重要的是，我們還能夠填補一些員工空缺，特別是在美國的戰略研發領域和我們在印度的子公司。 展望未來，我們現在預計加速一些重要的研發里程碑，從而增加 NRE 費用，尤其是在第二季。 因此，我們也計劃繼續招募更多資源。 因此，我們預計下一季的研發費用約為 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.

第一季銷售、一般及行政費用為 290 萬美元，約佔營收的 7%，比上一季增加 13.7 萬美元。 對於 2005 年第二季度，我們預計銷售、一般及行政費用 (SG&A) 將增加約 50 萬美元，主要原因是與遵守《薩班斯-奧克斯利法案》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 2005 年第二季的非現金股票薪酬費用約為 450,000 美元，但是，股票薪酬費用還將包括基於我們期末股價的少量可變因素，因此，確切金額很難預測。

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.

現在我們來看看資產負債表。 我們的應收帳款為 2,280 萬美元，平均 DSO 約為 44 天，3 月 31 日的庫存餘額為 850 萬美元，全部為成品。 因此，現在這個餘額比我們第四季數據中顯示的 180 萬美元庫存更接近我們 30 天的目標庫存水平，而這僅代表當時約 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收入確認政策遞延的貨物運輸利潤，第一季末為 430 萬美元，略高於第四季的 400 萬美元。 我們在第一季創造了創紀錄的季度正營運現金流，超過 1,300 萬美元，因此我們的現金和短期投資在第一季末增加到 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.

本季末的員工總數約為 194 人。我們在第一季增加了 13 名員工，其中大部分在研發部門。 截至本季末，我們超過四分之三的員工專注於當前或策略研發活動，而且我們一半的員工駐紮在印度海得拉巴。

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.

我們最近也簽署了一份新的租約，並計劃在六月初將我們的聖克拉拉業務遷至聖荷西。 新設施使我們能夠支持計劃的成長，並利用非常優惠的房地產利率，這是過去十年中最低的利率之一。

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.

我們相信，2005財年仍將是快閃記憶體和硬碟MP3市場顯著成長的一年，而且根據市場預測，這兩個領域的需求都將持續保持強勁。 短期內，我們預期個人媒體播放器的需求將持續強於典型的季節性消費性電子產品趨勢。 因此，我們認為 2005 年第二季的營收可能與第一季的營收大致相同，因此我們預計第二季的營收將在 4,160 萬美元至 4,760 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.

預計營運費用約為 1,140 萬美元，我們預計股票薪酬費用約為 45 萬美元，基於約 2,550 萬股加權平均流通股，GAAP 每股攤薄淨收益在 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.

預計第二季有效稅率仍為 25%，不包括薪資費用的非 GAAP 每股攤薄淨利潤預計在 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，我想將電話轉回給加里，聽聽他的意見。 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。 從財務數據可以看出，第一季是新年的一個好開始。 正如 Olav 所提到的，第一季的需求既來自我們最大的客戶，也來自我們的一些設計訂單以及去年第四季推出產品的新客戶。

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.

其他客戶（包括 iRiver、Olympus、三星）的收入比去年同期從其他客戶獲得的收入增加了六倍多。

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​​的客戶策略是集中精力從全球品牌領導者那裡贏得設計——這些公司擁有行銷影響力和貨架空間，可以使其產品潛在地大幅增加銷售量。

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.

在我們上次電話會議中，我們提到 MP3 市場公認的領導者 iRiver 最近推出了基於我們的照片版平台的 H10 MP3 點唱機。 這款配備一吋硬碟和 5GB 容量的設計不僅因為其 MP3 功能和彩色 LTD 螢幕而受到市場的歡迎，而且也是首批支援最近推出的訂閱音樂服務的 Microsoft play-for-sure 合規產品之一。

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 最近也推出了 20GB 版本的 H10，可以與訂閱模式結合，讓用戶下載更多數位媒體。 MP3品牌領袖的最佳例子當然是蘋果電腦。 二月底推出的新款 iPod mini 採用了我們最新的系統系統技術，我將在幾分鐘內討論這項技術。

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.

在營運方面，我們致力於提供高性能半導體解決方案、創新韌體和軟體以及靈活的開發套件，幫助我們的客戶在高容量功能豐富的硬碟和現在的快閃記憶體市場中設計出尖端的差異化產品。

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，我們投入了大量的時間和精力來進一步改進現有技術，並致力於即將推出的技術計劃，我們相信這些計劃將推動未來市場的成長和客戶的差異化。

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，我們推出了第五代 SoC、系統單晶片 5022，並宣布推出 5024，這是一款針對高容量、功能豐富的 MP3 市場的新型封裝系統。 這些解決方案所採用的技術涉及三大舉措——電池壽命、模擬整合和價格點。 那麼，讓我們逐一了解這些新產品，我將討論它們的改進和特性。

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。 該晶片採用 0.13 微米處理器製造，可將硬碟媒體播放器的電池壽命延長三倍，同時將系統峰值效能提高 25%。 它還支援閃存儲存媒體。 基於該技術的硬碟媒體播放器現在可播放長達 28 小時，或者說，連續兩週每天播放約 2 小時。 我們相信，這種兩週的使用模式可以解決有關媒體播放器使用我們的產品時電池壽命的問題。

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.

我們計劃持續開發新的創新，不僅要改進音頻電源管理，還要推動業界領先的高解析度照片和數位版權管理影片內容解碼支援。

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效能之外，我們的 5022 還提供了許多全新升級的功能，例如用於音樂幻燈片的最佳照片瀏覽、USB 2.0 主機、On-the-Go 和 pig sync，首次提供與多種相機型號的兼容性。 此外，也透過我們的協處理器系統介面提供 MJPEG 視訊 MPEG-4 視訊和高效能協處理器支援。 最後，整合相機應用程式支援 2 億至 300 萬像素的影像。

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 也滿足當今多樣化顯示技術的需求，即高解析度、普通 LCD 顯示和電視輸出支援。 我們的雙視圖顯示技術使用戶能夠操作手持 LCD 來預覽和選擇音樂、跟隨影片或在電視螢幕上同時播放不同的影像。 我們對這款新設備所取得的成就以及我們能夠如此順利和快速地完成製造感到非常興奮。 使用具有顯著延長電池壽命的 5022 的型號的評價非常積極。

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，我們的新型 5024 系統級封裝 (SIP) 採用了新型 5022 晶片中的許多高性能硬體功能，並將它們與模擬集成相結合，為功能豐富的大容量 MP3 播放器提供了革命性的解決方案。 透過將我們的新型 0.13 微米媒體處理器與我們與奧地利微系統公司聯合開發的 0.135 微米混合訊號 SoC 相集成，我們現在擁有一個完全集成在小型 10x10 毫米晶片封裝中的解決方案，該解決方案專為高容量、功能豐富、基於快閃記憶體的設計而設計。

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 整合了系統處理器以及音訊、電源管理和電池充電功能，這是我們模擬整合路線圖的第一步。

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 是我們第一款採用堆疊染料系統級封裝技術的產品，使我們能夠創建高度整合設備的半客製化整合選項，以滿足特定客戶和產品的要求。 堆疊染料使我們能夠為特定客戶平台提供混合搭配的方法，並且由於變化減少，支援解決方案佔用空間小、易於設計電路板，並且簡化了韌體支援模型。

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 首次將硬碟播放器所採用的功能（如彩色螢幕和對遊戲和視訊等多媒體功能的支援）引入到基於大容量快閃記憶體的個人媒體播放器中，並且以極具吸引力的價格實現這些功能。 5024 將於今年下半年全面上市，批量為 10,000 台時單價為 995 美元，按照慣例，批量越大，折扣越大，從而提供極具競爭力的價格。

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.

我們常被問到 5024 的目標市場是什麼，這個市場有多大？ 為了確定這個機會，我們研究了玩家將提供的儲存容量和功能的組合。 設計必須具有足夠的存儲空間才能表明該解決方案功能豐富，可以添加數據庫、更高級的內容管理和基於 DRM 內容的許可支持，並且我們預計 OEM 會對提供這些類型的特性和功能感興趣，從支持訂閱音樂服務的 1GB 閃存播放器開始。 這個市場正在興起，但是，我們相信隨著快閃記憶體成本的不斷下降，公司將迅速轉向設計大容量快閃記憶體產品。

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.

今年底，我們相信 1GB 或更大容量快閃記憶體市場可能會超過快閃記憶體播放器整體出貨量的 20%。 提醒一下，Gartner 預計今年快閃記憶體市場將達到 4,580 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 將使我們能夠在 2004 年數位播放器市場中佔據更大的份額，並有助於我們贏得新客戶和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.

我將稍微轉換主題，談談一些市場趨勢。 許多新興趨勢預計將推動未來個人媒體播放器的需求，並激發新型創新產品的開發。我們相信我們處於開發這些技術的前沿。

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.

首先是下載音樂的替代聲音的出現。 我們看到，下載音樂的按使用量付費模式非常成功。 下一步是推出替代模型以滿足不同人的需求。 我們相信，為此，可以有多種不同的模型來適應不同的音樂類型。

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.

過去幾個月推出了訂閱服務，該服務僅允許聽眾以每月支付一次租金的方式串流播放任何他們想聽的音樂，但更重要的是，允許聽眾以相同的租金將歌曲下載到個人媒體播放器上。 我們相信，訂閱服務對於擁有大容量播放器的用戶來說尤其具有吸引力，他們可以每月支付固定費用來存取數千首歌曲，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、短影片片段、新聞報導、播客和照片的數據，我們看到其吸引力也會增加。 例如，POD Casts 最初是一場地下運動，但很快就興起並被通用汽車、Sun Microsystems 和任天堂等公司所採用。 我們認為這些是大容量播放器的重要驅動力，它們需要強大的解決方案來管理內容、編目資料並提供強大且便利的使用者體驗。 這正是 PortalPlayer 的優勢。

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”，該技術同時包含兩種元素——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，目前我們的客戶也正在交付結合這兩種功能的產品。

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.

轉向高解析度彩色螢幕是另一個明顯的趨勢。 2004 年，我們推出了照片版平台，使個人媒體播放器能夠實現彩色顯示。 2005年，我們預期彩色顯示器將從高階產品轉變為更主流的產品。 我們預計，我們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，具有此功能的媒體播放器對於潛在的新買家來說將是最有吸引力的。

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.

個人媒體播放器採用彩色顯示的另一個驅動因素是數十億張數位照片的激增。 隨著容量的增加和彩色顯示器的日益複雜，媒體播放器已成為儲存更多照片、以音樂增強的方式透過幻燈片向朋友和家人展示照片的完美設備。 然而，目前的問題是這些攝影設備和數位音樂播放器之間缺乏太多的互通性和相容性。 這就是我們最近成為 pig sync [ph] 聯盟創始成員的原因。 該聯盟是由數位媒體播放器、數位相機和便攜式資料儲存市場中的公司自願組成的行業組織，旨在讓消費者更輕鬆地在數位相機和車載播放器之間以及消費性電子儲存和播放設備之間傳輸照片。 PortalPlayer 為此舉措提供了大力支持。

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.

我們的新 5022 設備允許用戶將便攜式媒體播放器直接連接到數位相機。 我們認為儲存和顯示數位照片的能力是媒體播放器市場的成長動力，我們將繼續與其他行業領導者合作，幫助發展技術標準，以利用這一成長機會。

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.

今天我想談的最後一個趨勢是統一設備的發展。 這些設備融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，我們今天正在對此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.

總而言之，我們在現有客戶群中取得了巨大的成功，我們的 5022 大大提高了我們提供的技術標準，我們的 5024 使我們能夠瞄準更大的整體市場份額，並且保持了 2005 年的強勁勢頭。我們打算繼續走在技術發展的前沿，並成為市場領導者。

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.

我們很高興現在開始回答您有關我們業務的問題，但我想提醒大家，我們的政策是不評論特定客戶的產品或他們的路線圖。 接線員，我們已經準備好回答問題了。

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

[操作員指示] 瑞士信貸第一波士頓的蘭迪·艾布拉姆斯。

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更詳細地闡述推動這一強勁成長的因素以及您對第二季的展望？ 也許可以談談前景，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強勁勢頭。 這直接反映在我們的積壓工作上。 如您所知，透過我們的集中精力，今天的積壓訂單已經由一些非常大的客戶彌補了。 因此，正如我所說，我們重申，該季度的強勁表現實際上是由我們面前的積壓訂單推動的。 因此，它來自廣泛的客戶群體，這可能是我能給你提供的資訊。

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，現在轉到閃存產品——也許只是提供有關客戶反饋情況以及採樣活動進度的最新消息。

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.

我們的客戶接待十分熱烈。 您可能知道，CS 是我們第一次在獨立平台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，反應十分熱烈。 我們計劃在下半年全面發布該產品，並且我們相信我們正在按計劃實現這一目標。

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，關於手機市場還有最後一個問題——諾基亞剛剛推出了一款配備 4GB 硬碟的 BOD [ph] 手機。 也許可以多談談手機市場——您是否開始看到 Hensa [ph] 供應商和運營商的更多參與？ 如果你看看現在的晶片——你是否認為它能夠在這個領域銷售，或者你認為你需要額外的功能才能瞄準這個市場？

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.

蘭迪，這個問題問得非常好。 我們認為市場中存在著許多令人興奮的事情。 我們相信，出色的音樂體驗確實能夠改善手機體驗。 正如您所說，一些早期發布的產品可能會在年底上市，價格較高，電池壽命較短。 因此，我們積極對話的重點領域是使用者介面、平台功能和功耗，這些領域具有很大的不同，我們正在與這個市場的關鍵參與者進行良好的對話。

Glen Yeung with Salomon Smith Barney.

所羅門史密斯巴尼 (Salomon Smith Barney) 的 Glen Yeung。

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.

大家好，我是 Glen 的 Jim。 您過去曾討論過，第四季您的蘋果營收約佔 88%，非蘋果營收約佔 12%。 您能否向我們介紹第一季度的最新情況和前景？

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.

最新消息是，正如我之前在準備好的發言中所說的那樣，本季度我們向非蘋果客戶銷售了價值超過 500 萬美元的產品，吉姆，我無法為你透露第二季度的具體數字。 我們不提供那種指導。

Anything for year-end?

年末有啥安排嗎？

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

對年底來說，不，肯定不是。 該指導僅針對一個季度，我們不會按客戶進行細分。

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

好的，您能評論一下第一季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，我無法對 ASP 進行評論。 您知道我們之前說過什麼—消費性電子領域的平均售價傳統上呈現下降趨勢。我們表示，從 SKU 來看，下降幅度為 20% 至 25%。 隨著我們添加新產品、新功能以及新價值，您可以減緩這一速度並將下降幅度降低到 10% 到 15% 左右。 當您重新設定新產品的價格時，我們在本季推出 5022 時取得了巨大的成功並取得了一些成就。

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

[操作員指示] 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?

先生們，大家好，下午好——這是一個美好的季度，很好的指導。 您什麼時候期望——也許對加里來說——您什麼時候期望從閃存 SIP 中獲得有意義的收入？ 它會在今年實現嗎？還是說您打算等到 2006 年初？

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，一切都回歸到有意義的定義。 正如我們所說，我們已經制定了計劃，我們相信我們將在今年下半年看到收入。 如您所知，從我們對快閃記憶體市場的細分來看，我們仍然主要瞄準高端、高容量、高效能的市場部分。 我們認為市場正在朝著有利於我們的方向發展。 我們認為，隨著快閃記憶體價格的快速下降，我們的大局實際上是在2006年找到最佳定位，我們認為，大容量播放器將非常符合我們的優勢，即高容量、大資料庫、大內容數。 所以，是的，我們今年會看到收入，但你的問題的語氣也非常強烈，我們認為 2006 年是市場走向的年份，這對我們進入該領域具有非常有意義的推動作用。

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。 奧拉夫，我認為投資者對於閃存和硬碟播放器的絕對庫存水準存在一些擔憂。 那麼，您能否先向我們描述一下您對最大客戶的庫存的可見度和舒適度，也許您能否向我們描述一下您對硬碟播放器銷售管道的可見性。 那麼換句話說，這有助於我們了解現有通路填充背景下的消費情況嗎？ 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通路庫存，但如果我們認為庫存過剩，我們就不會看到我們轉化為強勁收入預期的強勁積壓訂單。 那麼你想知道我們的庫存水準嗎——

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 水準有很好的了解。 我想這是一件不用動腦子的事情，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.

我們對所給予的指導感到非常滿意。 我們與擁有非常好的材料規劃流程的品牌領導者合作，他們在流程中非常嚴格，如您所知，我們已經進入了收入確認的第 8 週，這符合我們的收入確認政策。

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.

您能否為我們描述如何監控我所說的「成品」？ 謝謝您的最終客戶、最終品牌、銷售管道中的成品。

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.

嗯，我們擁有與您相同的資料存取權限。 我們當然會查看 MPD 數據，我們會查看我們自己在通路中的銷售情況，並且當我們的客戶發布有關其軟體的資訊時，我們可以存取與您相同的數據。

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，有了這些訊息，您的舒適度就會很高。 我不想把話塞到你嘴裡，但我聽到的東西就是這樣的嗎？

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 和 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，大家下午好。 也許只是為了了解您對 Q2 的了解而繼續回答這個問題。 您提到您有相當多的積壓訂單。 目前，您的指導中有多少比例屬於積壓訂單？ 或者換句話說，本季您還需要做出多少努力才能達到您的預期？

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，我無法告訴你這一點。 我無法確切地告訴你我們的銷售額是多少。 再次重申，我們已經進入收入確認的第 8 週。您知道，我們停止了第一季的收入確認——基本上是在 3 月 10 日。因此，3 月 10 日之後的所有收入都屬於第二季收入。

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，我來跟你介紹一下這家圖形晶片公司。 目前，我們在這個行業中還沒有經歷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——它不像你在其他類型的消費電子晶片業務中看到的經歷，那些業務非常具有曲棍球棒型的動態。

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，從你們的快閃記憶體市場策略來看，你們是否計劃擴大銷售和分銷範圍，以服務更廣泛的客戶群？ 您是否真的採取了步槍射擊的方法，只針對那些大人物？

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。 這正是我們表現優異並真正磨練技能的地方，但您提出的一個很好的觀點是，我們正在亞洲進行投資，特別是在韓國、台灣等地開展業務。 因此，我們正在擴大這一範圍，因為正如您所說，我們可以針對不同的客戶、不同實力的客戶。 但我們在品牌客戶方面投入了一些力量，但我們也在擴大我們在亞洲的影響力，因為正如你所知，這也將首先為我們帶來客戶。

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，那麼也許只看一下手機機會——您能否稍微談談您所看到的設計週期，並簡單介紹一下您認為最早什麼時候可以在市場上看到潛在產品？

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——存儲空間相對有限，而且許多困難的用戶體驗都與無線音樂服務以及透過 PC 或連接器服務捆綁在一起。 因此，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。 因此這確實開始指向 2006 年的時間範圍。 坦白說，這可能更多是為了獲得真正出色的端到端用戶體驗，而不是特定的晶片可用性。 因此，我想指出，在 2006 年這個時間範圍內，我們認為人們在音樂手機上將會獲得非常棒的音樂體驗。

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

好的，2006。最後，您是否給出了第二季的毛利率預測？

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，但如果你問到這個問題，我們的長期目標模型是完全完整的。 因此我們預期利潤率將在 41% 至 44% 之間。

Quinn Bolton with Needham and Company.

奎因·博爾頓 (Quinn Bolton) 與 Needham and Company 合作。

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，夥計們，這是一個好季度。 幾個問題——加里，你對彩色螢幕進入主流市場提出了一些非常有趣的評論。 我假設您所說的主流是指進入閃存播放器市場，因此我很好奇，當您縱觀整個競爭格局時，您將 5024 與市場上的一些其他產品進行比較，您有什麼樣的彩色屏幕支持，或者您是否比市場上現有的矽片有優勢，然後我還有一些後續問題。

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.

當我談到彩色的滲透時，我認為它已經進入了主流硬碟市場和高端、高容量閃存播放器，但趨勢顯然是存在的。 我認為人們喜歡色彩，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.

我們所說的在快閃記憶體市場的能力是指能夠支援最大 2x3 吋的螢幕 - TFT 或 DSTN 技術，因此我們的技術支援在這些袖珍顯示器上實現真正清晰、生動的照片顯示或影片顯示。

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

這是四分之一 VJA 還是更高解析度？ 該設備可以驅動什麼樣的像素解析度？

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.

四分之一 VJA 的價格恰到好處，因為這裡有趣的趨勢是，如果你真的將這些螢幕的成本和解析度推得太高，你就會開始將它們推離個人媒體播放器的關鍵價格點。 因此，QVJA 提供了非常好的體驗，而且，我們晶片組的另一個很棒的功能是能夠同時在電視上顯示，客戶喜歡這種方式，能夠獲得兩個不同的圖像——一個在媒體播放器上，一個在電視上。 現在我們在音樂方面有了豐富的經驗，我們將這種音樂體驗添加到照片、影片剪輯和影片剪輯中。

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，現在轉到 5022 和 5020 之間的轉換。您說 5022 對我們來說意義重大。 我只是想看看你是否能給出更多顏色。 我的意思是，那是兩位數嗎？ 是否大於 10 但小於 50？ 您可以在那裡提供任何東西。 一個相關的問題是，您認為舊款 5020 產品何時會開始走向生命週期的終點？ 該產品還會在 2006 年出貨嗎？

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，我無法提供，但我可以告訴你，是的，兩位數。 對我來說重要的當然是兩位數。 介於 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?

範圍很廣，但是沒關係。那麼 5020 呢，您能否評論一下您認為它什麼時候會從收入結構中消失？

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.

尾部可能將於 2006 年初出現。 這可能是產品功能逐漸減弱的階段——正如你所說，隨著這些新產品的推出，電池壽命將大幅延長三倍，這是一套非常引人注目的功能，對我們的技術在這個領域的影響力產生了巨大的影響。 所以坦白說，我認為到今年年底，也就是明年年初，你會看到這一比例在我們業務中所佔的比例會下降到相當小的程度。

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，最後再問一個關於市場的問題。 能否談談手機市場？您是否看到了機會，我想，近期獨立的 MP3 播放器晶片僅用於 MP3 播放器應用，可以作為相機處理器或媒體協處理器/應用處理器，或者您是否認為 5022 或未來一代產品真的會取代或填補手機中整個應用處理器或媒體協處理器的角色？

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.

答案是兩者皆有。 坦白說，這實際上取決於市場上一些參與者的上市時間。 與當今市場上的解決方案相比，5022 顯著節省了電力，如果你想想當今手機市場上的解決方案，它們在不傳輸時也能很好地工作。 它們在高發射功率下運作得很好，但恆定操作模式（即 MP3 或音樂播放的工作方式）才是 PortalPlayer 真正開發的強項。 因此，我們對您描述的這兩種應用都很感興趣。

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，然後最後一個快速問題——您能否評論一下交貨時間——大概是八週，還是十二週，您能給什麼評論嗎？

About midpoint between those two.

大約位於兩者的中間點。

Dan Ernst with Hudson Square Research.

哈德遜廣場研究公司的丹恩斯特 (Dan Ernst)。

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?

我是法蘭克，替丹打來的。 只是一個簡單的基本問題——其他收入似乎有點高，約為 90 萬美元。 你能解釋為什麼會這樣嗎？

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。 我們已投資 1.37 億美元，如您所知，現在收益率已經好多了。 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 --

好的，這很有道理。 其次，我知道第二季電子產品的銷售通常會稍微慢一些，但考慮到 MP3 市場滲透率還不是那麼高，您對第二季的庫存水準是否感到滿意？ 我知道您說過，長期來看，您的庫存週轉天數約為 30 天。 這就是你想要的。 考慮到您所看到的實力，這仍然是一個很好的水平嗎？

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，並且我們對此感覺很好，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，我知道關於手機的問題已經被問了很多次了。 我就再試一次。 鑑於摩托羅拉計劃在今年年底（更有可能是第一季）推出 iTune [ph]，並保留手機中的硬碟和晶片上的 DVDH 功能 - 如果手機視訊市場在 2006 年初至年中實現，這是否意味著您必須在今年年底前開始向任何潛在的手機供應商提供晶片樣品，或者是否有其他方式來考慮時間框架 -

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，你距離時間框架並不遠。 我認為答案是，有人問過先前的問題——您將使用哪種架構來實現該晶片組？我們可以根據客戶要求，將其定位在兩個實際插座位置中的任何一個。 所以我認為，作為過去五年 MP3 領域的先驅，我們學到的是，必須確保整合完整的端到端體驗，而且我認為我們在 MP3 市場中非常積極地學習瞭如何將應用程式、韌體和晶片整合在一起，我們認為手機用戶想要獲得出色的音樂體驗。 這就是我們關注的重點，我們要確保做出正確的投資來實現這一目標。

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.

先生們，下午好，幹得好。 我的許多問題都已得到解答，但我想退一步，間接地問一下，您對 NAN [ph] 和微型硬碟的價格有何看法？何時看到價格趨勢持續減速？您是否認為這預示著 MP3 播放器的價格將持續下降到最佳價位，並推動高端市場的更多需求？這只是一個頂級問題，然後我有一個後續問題。

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

您問的是硬碟還是微硬碟與快閃記憶體？

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.

這只是儲存媒體本身的一般定價，您可以看到它直接轉化為供應商降低自身價格並推動我們都預測的單位成長的能力。

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.

嗯，正如你所知，硬碟市場本身的容量基數較小，參與者數量也較少，但我們現在開始看到大公司真正邁出步伐，我們也看到他們的供應商宣布全年增加產量。 因此，我們認為您會看到微硬碟價格穩定下降，不是明顯的穩定下降，而且還會出現新的容量點，例如這種類型的空間中的 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，西部數據等公司也宣布有意進入這個市場，因此這通常會加劇競爭，增加可用性，並加劇硬碟領域的價格競爭。

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.

就快閃記憶體市場而言，從價格角度來看，更加活躍。 快閃記憶體市場的價格下跌幅度在 40% 到 45% 之間，我們認為下半年這種趨勢還會持續大幅下降。 再次強調，這就是為什麼我們的策略是不追逐閃存市場進入低閃存容量尺寸 - 半 GB、256 - 我們認為這是一個聰明的策略，因為我們認為到今年年底，也就是 2006 年，你將會看到 1 GB 和 2 GB 將成為閃存 MP3 播放器的最佳容量。

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?

您能否評論一下，您與這個問題有點不相關，但從地理位置上看，您認為需求在哪些方面會加速或減速，這與您自己的預期相比如何？

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.

它確實沒有產生太多混合。 我認為總是存在這種情況的，因為這個市場上的一些大型參與者會推出一些新的音樂服務，從而刺激不同地區的需求，如果有人——你知道，從區域角度來看，在澳大利亞或中歐推出的新音樂顯然會有所幫助。 我們仍然認為美國是硬碟 MP3 市場的強大推動力。 Career [ph] 喜歡新的創新，因此職業市場總體上會接受各種類型的 MP3 播放器，而世界其他地區則往往更加重視成本。 因此，我將其描繪成總體情況，到目前為止，每個季度的情況都相當一致。

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?

您是否擔心，或者顯然，您已在策略中考慮到了這一點，但過去嘗試過，特別是在手機市場，集成多媒體功能或添加一兩個主要應用程序（例如可能在手機本身上添加視頻或音樂），但最多只能說是成功與失敗參半。 是什麼讓您更有信心我們已經達到一個關鍵點，你知道，電池管理一直是一個大問題，向前發展。 是什麼讓您有信心我們正處於這個關鍵時刻，我們實際上將推出不會讓消費者再次失望的產品？

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.

嗯，我想你完全贊同我的觀點。 它將完整的解決方案整合在一起，並知道如何以非常低功耗的配置傳輸加密內容，製作非常靈敏的用戶介面，以及如何為人們提供例如個人電腦和手機之間的通用用戶介面。 這些都是我們在過去五年建立個人媒體播放器業務時表現出色的領域。 我們現在擁有針對照片、音樂進行功率優化的解決方案，我們擁有集成相機解決方案，我們擁有視頻剪輯功能，因此我們的領導力、管理能力以及對端到端服務的真正深入洞察，我們認為，當我們與市場參與者交談時，這為我們提供了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?

最後一個問題想問奧拉夫——您能把經營活動產生的現金分成幾個部分嗎——第一部分可能是股票選擇權行使貢獻？

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.

我們的股票選擇權行使貢獻絕對微乎其微。 主要來自我們的淨收入，然後你肯定會看到庫存和一些非現金營運資本部分發生了變化。 淨收入大概有 700 萬到 800 萬美元，非現金營運資本變動大概有 500 萬到 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?

關於第二季度指引的一個問題——您能否給我們一些細節，您認為這是由於新產品庫存增加所致，還是您的客戶正在為夏季的強勁增長做準備，因此他們正在提前建立庫存，或者您認為我們只是看到消費者需求在全年呈現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從主要供應商看到顯著的差異或資訊。 正如奧拉夫所指出的，我們在非常重要的規劃方面有著牢固而良好的關係。 因此，如果我們認為庫存過剩，我們就不會看到如此嚴重的積壓。所以，坦白說，這直接轉化為我們對下一季（第二季）的強勁營收預期。

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

那麼，我是否應該由此得出這樣的結論：您認為消費者需求正在以線性方式強勁成長？

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.

我不確定我能否用線性數字來表示這一點。 正如您從 Gartner 資料中看到的，我們仍然處於快速成長的 MP3 市場中。 Gartner 的數位預測表現良好，正如我們所指出的，與類似的電子產品趨勢相比，我們的指導比季節性要好。 這是因為 MP3 市場充滿活力，當然，我們也在吹噓，我們將優秀的產品設計成優秀的客戶產品，而且它們在市場上獲得了成功。

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

這是否包括您目前正在銷售並將於今年稍後發布的新產品？

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.

本季的效果確實是逐季呈現的。 下半場我們到下半場再講。 在這個市場中，我不相信人們真的會在這裡建立長鏈來延長保質期。 所以，不，我們認為這反映了我們的客戶所期望的商機。

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，然後只有兩個基本問題——只是想澄清混合 ASP 問題。 奧拉夫，我知道您談到了混合 ASP 下降了 10% 到 15%，但考慮到 5022 的強度——明顯的強度，本季度混合 ASP 是否有可能實際上有所增加？

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.

讓我這樣回答吧——我們業務的平均售價確實下降了。 我的意思是，在某個季度，您可能會看到 ASP 成長持平，這取決於您何時推出產品以及附加功能是什麼。 Q1，我認為這完全符合我們的指導。

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，那麼關於今年下半年的快閃記憶體產品的問題——您認為會有——或者您能否告訴我們該產品與硬碟產品的毛利率有何差異？

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.

我們不會按照產品系列來區分單一產品。 我們對我們所指導的長期模式充滿信心，坦白說，我們已經將業務建設到 41% 到 44%，並且我們已經對今年剩餘時間給出了指導。

Randy Abrams, Credit Suisse First Boston.

瑞士信貸第一波士頓的蘭迪‧艾布拉姆斯 (Randy Abrams)。

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?

我想問一下您本季以及下一季產生的現金狀況——您是否有計劃回購部分鎖定期股票，以吸收可能出現的部分股票？ 也許最好談談您的目標現金水準是多少？

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.

我現在還沒有可以談論的有關回購計劃的計劃。 我們剛上市，有現金，有很多機會，我們很高興能籌集這麼多現金。 我不知道具體情況——我無法就我們的目標水平以及我們實際上將達成什麼樣的協議向你提供任何指導。 現在還為時過早，我們現在仍在執行我們的計劃，我們對第一季的業績和第二季的指導感到非常滿意。 因此，時機成熟時，我會做出適當的披露。

Chris Chaney with Stanford Group Brokerage.

史丹佛集團經紀公司的克里斯錢尼 (Chris Chaney)。

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，大家，本季表現非常出色。 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 1000 多萬台的門檻，此時 [聽不清楚] 和 LSI Logic 的關係可能​​不再像以前那麼必要了。 您有什麼計劃可以談一談，以幫助保護您的毛利率嗎？ 如果平均售價下降幅度超過您的預期或類似情況，是否會提高該地區的整體獲利能力？

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，正如您所說，我們現有的供應商實際上被證明是非常靈活和相當靈活的合作夥伴。 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。 他們在執行我們現有的成本削減計劃方面做得很好，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投資和一些其他關鍵投資，我們需要加強內部運營能力，並且我們將在全年逐步研究如何將 COT 技術真正轉化為現實。 因此，我們現有的合作夥伴為我們提供了良好的服務。 他們是優秀的、靈活的合作夥伴，但我們已開始增加員工人數，以便在向 COT 過渡的過程中根據 SKU 逐一做出決策。

Shawn Slayton, SG Cowen.

肖恩·斯萊頓，SG 考恩。

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，你提到了影片片段。 從行業角度而不是從客戶的特定層面來看，今年聖誕節是否急於將新的支援 MPEG4 的媒體播放器推向市場？ 或者您覺得今年業界在基於訂閱的音訊方面仍處於起步階段，而 MPEG4 很可能是 2006 年的事件？ 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，它確實是針對特定客戶的。 我認為，當顧客開始專注於如何區分彼此時，我們確實會看到截然不同的趨勢。 例如，在亞洲，人們對影片類型的內容非常感興趣，我們認為對於個人媒體播放器來說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，從我們的亞洲客戶群來看，客戶更願意以稍微隨意的方式下載內容，我們看到了他們的興趣。 我最近去了韓國，我們看到那裡有濃厚的興趣。

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.

正如您所說，沒有一種整合的、易於使用的服務類型，這可能是 '06。 因此我們看到了兩者。 這是一個很好的位置。

Shaw Wu, American Technology Research.

Shaw Wu，美國技術研究。

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，我只想問一些關於 5024 的問題——該產品是否僅針對閃存，還是也可用於硬碟？ 然後下半場的時間安排會更好。 那是下半場的前半部還是下半場的後半部？ 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.

我只是對時間方面感到高興。 5024 是針對快閃記憶體市場進行最佳化的。 實際上，透過使用第二個 0.35 微米晶片，您可以獲得在閃存播放器上播放所需的所有強大功率等級和供電時間 - 顯示器、背光、電源 USB 2.0 - 因此 5024 是完整高階快閃記憶體播放解決方案的特定、目標明確的點。

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.

關於下半年的預期，坦白說，我現在不會再給你任何細節。 拭目以待，這就是答案。

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，我只想快速跟進。 就下一代硬碟平台而言，您看到嗎——您說您的 5022 支援 MPEG 視頻，我猜，是透過協處理器實現的。 有任何將其完全整合的計劃嗎？

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，我們今天在本機模式下完全支援運動 JPEG 和 MPEG 4，無需任何外部支援。 我們透過定義的協處理器介面引入的是，如果您真的想提高視訊的效能水平，坦白說，這將需要很大的功率。 我們現在與市場上的其他解決方案進行對接，為您提供真正高效能的解決方案。 今天我們在整合晶片中介紹了主流影片。

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。 您能提供本季出貨的單位數量嗎？

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

不，根據目前的政策，我們實際上拒絕透露平均售價和銷量的資訊。

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，我想現在我們再次感謝大家今天的參加。 非常高興您接聽電話並表示有興趣。 我們計劃在接下來的幾個月經常外出與投資者會面。 Olav 將於 5 月 3 日參加美林證券技術聚會。 我們都將參加 5 月 11 日舉行的加拿大帝國商業銀行 (CIBC) 全球市場通訊和技術會議、6 月 2 日舉行的 Salomon Smith Barney 會議，當然還有 6 月 7 日舉行的西部年度技術會議。 因此，我們都期待在這些會議上見到你們，並以此結束本次電話會議。 謝謝。

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，現在您可以斷開電話線。