輝達 (NVDA) 2005 Q2 法說會逐字稿

Welcome to the PortalPlayer, Inc. second quarter 2005 earnings conference call. Today's call is being recorded and will be available for playback beginning one hour after the completion of the call. To access the replay, please dial 719-457-0820 with the passcode 6446864. At this time for opening remarks and introductions, I would like to turn the call over to Kristine Mozes, Investor Relations for PortalPlayer. Please go ahead.

歡迎來到 PortalPlayer, Inc. 2005 年第二季度財報電話會議。正在錄製今天的通話，通話結束一小時後即可播放。要訪問回放，請撥打 719-457-0820，密碼為 6446864。此時，我想將電話轉給 PortalPlayer 投資者關係部的 Kristine Mozes。請繼續。

Thank you, and thank you for joining us today. In addition to this call being available by phone replay, it is being 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 in reconciliations of the differences between these measures.

謝謝你，謝謝你今天加入我們。除了通過電話重播獲得本次電話會議外，還將通過 PortalPlayer 網站 www.portalplayer.com 的投資者關係頁面進行現場直播。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，以核對這些指標之間的差異。

With me today is Gary Johnson, President and CEO of PortalPlayer, and Olav Carlsen, PortalPlayer's Chief Financial Officer.

今天和我在一起的是 PortalPlayer 總裁兼首席執行官 Gary Johnson 和 PortalPlayer 首席財務官 Olav Carlsen。

I will begin this call by reading our safe harbor statement. The statements on today's call, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. e forward-looking statements include, but are not limited to, statements as to our future plans and growth, development efforts, features, benefits and introductions of products and technology, our plans to hire additional resources, our plans with respect to our facility in Hyderabad, India, and our and our customers' market position, our revenue growth, including revenue from the flash market and timing thereof, market trends and demand for high-capacity players and anticipated growth of this market, demand for our products and future financial results, GAAP and non-GAAP including revenue, net income, expenses, gross margins, ASPs, stock based compensation charges, tax rates, cash flow, weighted average shares outstanding, and operating expenses, including, but now limited to, future R&D spending and selling, general and administrative expenses. 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, our Form 10-K for the year ended December 31, 2004, and our Form 10-Q for the quarter ended March 31, 2005, as filed with the SEC and from time to time in our other SEC reports for information on risk factors that could 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.

我將通過閱讀我們的安全港聲明開始這個電話會議。今天電話會議上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。前瞻性陳述包括但不限於關於我們未來計劃和增長、開發努力、特點、優勢和產品和技術介紹的陳述，我們僱用額外資源的計劃，我們關於我們在印度海得拉巴，以及我們和我們客戶的市場地位、我們的收入增長，包括來自閃存市場的收入及其時機、市場趨勢和對高容量玩家的需求以及該市場的預期增長、對我們產品的需求和未來的財務狀況結果、公認會計原則和非公認會計原則，包括收入、淨收入、費用、毛利率、平均售價、基於股票的薪酬費用、稅率、現金流、加權平均流通股和運營費用，包括但現在限於未來研發支出以及銷售、一般和行政費用。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。請參閱今天的收益報告、我們截至 2004 年 12 月 31 日止年度的 10-K 表格和截至 2005 年 3 月 31 日的季度的 10-Q 表格，這些表格已提交給 SEC 並不時提交給我們的其他 SEC報告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。

Now I'd like to turn the call over to Gary for his introductory remarks. Gary?

現在，我想將電話轉給 Gary，讓他作介紹性發言。加里？

Thank you and welcome everyone. As you can see from our press release, Q2 was another great quarter for PortalPlayer. We successfully executed on our product roadmap and business plan and demand for personal media players that incorporate our technology was again stronger than seasonal trends this quarter. Second quarter revenue came in line with our guidance. It nearly quadrupled from the second quarter a year ago and was slightly higher than the strong revenue recorded in Q1. o in Q1 and Q2, quarters in which the consumer electronics industry typically sees sequential revenue dip, we did not experience these declines, but rather continued to see very strong demand. We again added more than $13 million to our cash position, which has increased now to more than $150 million. Our earnings per share came in at the highest point of our guidance range. We are very proud of what we achieved this past quarter. In summary, all our financial metrics were in line with or better than our guidance. Olav will give you more details in a minute.

謝謝大家，歡迎大家。正如您從我們的新聞稿中看到的那樣，第二季度對 PortalPlayer 來說是另一個很棒的季度。我們成功執行了我們的產品路線圖和業務計劃，並且本季度對採用我們技術的個人媒體播放器的需求再次強於季節性趨勢。第二季度收入符合我們的預期。它比去年第二季度幾乎翻了兩番，略高於第一季度的強勁收入。 o 在第一季度和第二季度，消費電子行業通常會出現連續收入下滑的季度，我們沒有經歷這些下滑，而是繼續看到非常強勁的需求。我們再次增加了超過 1300 萬美元的現金頭寸，現在已增加到超過 1.5 億美元。我們的每股收益處於我們指導範圍的最高點。我們為上個季度取得的成就感到非常自豪。總之，我們所有的財務指標都符合或優於我們的指導。奧拉夫將在一分鐘內為您提供更多詳細信息。

So what were our major initiatives in Q2? We focused a lot of our attention on our operational execution. During the quarter, we successfully and quickly ran production of our new PP5022 device. In fact, as of today, we have already shipped more than 6 million units of this device. We have completed the design activity for our customer's exciting new models that are expected to launch in the second half of this year. In addition, we worked with our supply chain to prepare operations for significant demand in the second half of the year. And finally, we accelerated our investment in innovative wireless technologies that we believe will help fuel our growth in 2006 and beyond.

那麼我們在第二季度的主要舉措是什麼？我們將很多注意力集中在我們的運營執行上。在本季度，我們成功快速地生產了新的 PP5022 設備。事實上，截至今天，我們已經出貨了超過 600 萬台這款設備。我們已經完成了客戶激動人心的新車型的設計活動，預計將於今年下半年推出。此外，我們與供應鏈合作，為下半年的大量需求做好準備。最後，我們加快了對創新無線技術的投資，我們相信這將有助於推動我們在 2006 年及以後的增長。

In a few minutes, I'll go into more detail about each of these initiatives but first I'd like to take a minute to thank Tom Spiegel for his dedication and support as a member of the board of directors as we have successfully transitioned from a startup to a public company. With this call, we are announcing that Tom has resigned from the board and on behalf of the board, I would like to thank Tom for his energy and involvement over the past three and a half years and wish him great success as he turns his attention to new endeavors. Thank you, Tom.

幾分鐘後，我將詳細介紹這些舉措中的每一項，但首先我想花一點時間感謝湯姆·斯皮格爾作為董事會成員的奉獻和支持，因為我們已經成功地從一家上市公司的初創公司。通過這次電話會議，我們宣布 Tom 已從董事會辭職，我謹代表董事會感謝 Tom 在過去三年半中的精力和參與，並祝愿他在轉移注意力時取得巨大成功到新的努力。謝謝你，湯姆。

Now I will turn the call over to Olav who will take you through the details of our second quarter financials.

現在我將把電話轉給 Olav，他將帶您了解我們第二季度財務的詳細信息。

Thank you, Gary, and welcome everyone. The second 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 about a 270% increase from the $12 million in the same period a year ago, and slightly higher than the revenue of $44.5 million we recorded in the first quarter of 2005. As Gary just mentioned, the second quarter of any given year is typically the weakest for the consumer electronics market so we're very pleased that the overall demand for products that utilize our technology continue to be so strong.

謝謝你，加里，歡迎大家。 2005 年第二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，比去年同期的 1200 萬美元增長約 270%，略高於我們第一季度錄得的 4450 萬美元的收入2005 年。正如 Gary 剛剛提到的，任何一年的第二季度通常是消費電子市場最疲軟的時期，因此我們很高興看到使用我們技術的產品的整體需求仍然如此強勁。

To give you a little more color, we did see some seasonality with our business outside of our largest customer, as well as market share shifts in favor of our largest customer. As a result, revenue from our other customers declined slightly, 8% of our overall revenue, while revenue from our largest customer increased. And as a reminder, in the second quarter, all of our revenue came from shipments for hard drive based personal media players. We began shipping our new 5022 system- on-chip in volume during Q1 and demand for that product has proven to be very strong. Revenue from the 5022 in Q2 accounted now for a majority of our total revenue and as Gary mentioned earlier, as of today, we've shipped more than 6 million units of this device. So as you can see, this new product has really been a great success within the marketplace and we've executed flawlessly in ramping production.

為了給您更多色彩，我們確實看到了我們最大客戶之外的業務的一些季節性，以及市場份額向我們最大客戶的轉移。因此，來自我們其他客戶的收入略有下降，占我們總收入的 8%，而來自我們最大客戶的收入則有所增加。提醒一下，在第二季度，我們所有的收入都來自基於硬盤的個人媒體播放器的出貨量。我們在第一季度開始批量出貨新的 5022 片上系統，事實證明對該產品的需求非常強勁。第二季度 5022 的收入現在占我們總收入的大部分，正如 Gary 之前提到的，截至今天，我們已經出貨了超過 600 萬台這款設備。如您所見，這款新產品在市場上確實取得了巨大成功，我們在提高產量方面表現完美。

Net income for the second quarter was $6.3 million compared with a net loss of $880,000 in the same period a year ago. This second quarter 2005 net income resulted in the income of $0.25 per diluted share based on 25.1 million weighted average shares outstanding compared to the loss of $0.64 per share based on approximately 1.4 million basic weighted average shares outstanding in the same quarter a year ago. And the significant difference in the share count between these two quarters is of course due to the fact that in the second quarter of 04, we were still a private company. Net income in the first quarter of '05 was $7.8 million, or $0.31 per diluted share based on 25 million weighted average shares.

第二季度淨收入為 630 萬美元，而去年同期淨虧損 88 萬美元。根據 2510 萬股加權平均流通股計算，2005 年第二季度的淨收益為每股攤薄收益 0.25 美元，而一年前同一季度基於約 140 萬股基本加權平均流通股，每股虧損 0.64 美元。而這兩個季度的股份數量的顯著差異當然是因為在 04 年第二季度，我們仍然是一家私營公司。 05 年第一季度的淨收入為 780 萬美元，或每股攤薄收益 0.31 美元（基於 2500 萬股加權平均股數）。

I would note here that we have made some changes in our employee stock incentive program. In the second quarter, we decided to move to a mix of options end restricted shares to all employees, thereby reducing the overall number of instruments that are issued. So for the second quarter, for the first time we incurred charges for the expensing of these restricted shares that vest over a longer period, now five years. I'll give you more details in a minute.

我要在這裡指出，我們對員工股票激勵計劃進行了一些更改。在第二季度，我們決定向所有員工混合期權終止限制性股票，從而減少發行工具的總數。因此，在第二季度，我們第一次為這些在更長時期內（現在是五年）歸屬的限制性股票的費用產生了費用。我會在一分鐘內給你更多細節。

And as a reminder on the tax side, for federal tax purposes, we're still carrying forward approximately $6 million of freely available net operating losses for this tax year. Based on our current strong financial performance and our business outlook for the remainder of '05, as well as the fact that we are quickly using up most of our NOLs,we began to provide for tax liabilities this year. As we said last quarter, using an effective tax rate of 25%, and this remains unchanged.

作為稅收方面的提醒，出於聯邦稅收的目的，我們仍在本納稅年度結轉約 600 萬美元的可自由使用的淨營業虧損。基於我們目前強勁的財務業績和 05 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，我們今年開始提供稅收負債。正如我們上個季度所說，使用 25% 的有效稅率，這保持不變。

Now excluding noncash stock compensation charges of $470,000 non-GAAP net income for this second quarter of '05 was $6.8 million or $0.27 per diluted share, compared with a non-GAAP net income in the second quarter of 04 of approximately $780,000 or $0.5 per diluted share. Non-GAAP net income for the first quarter of 05 $8.2 million or $0.33 per diluted share. In our earnings release, we provided a detailed reconciliation between GAAP numbers and the non-GAAP numbers which details the stock compensation charges for each quarter.

現在不包括 470,000 美元的非現金股票補償費用，05 年第二季度的非 GAAP 淨收入為 680 萬美元或每股攤薄收益 0.27 美元，而 04 年第二季度的非 GAAP 淨收益約為 780,000 美元或每股攤薄收益 0.5 美元分享。 05 年第一季度非美國通用會計準則淨收入 820 萬美元或每股攤薄收益 0.33 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。

Now let me discuss some information on this quarter's P&L and then I will move on to the balance sheet. The second quarter was again a great success on all accounts. Our gross margin for the second quarter was 43% and this is well within our long-term model of 41 to 44% and is about the same as in the first quarter of '05. As we've said in the past, we expect ASPs to decrease in the 20 to 25% range year-over-year on a single SKU basis and expect a blended portfolio ASP to decrease by only 10 to 15% year-over-year as we're able to achieve higher prices on our newer products. In Q2, our portfolio ASPs decreased by only 9% year-over-year due to the continued strength of our new products. Operating expenses were about $11.4 million for R&D and SG&A in the second quarter, a $2.1million increase from the previous quarter, exactly what we planned and guided to.

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。第二季度在所有方面再次取得巨大成功。我們第二季度的毛利率為 43%，這完全符合我們 41% 至 44% 的長期模型，與 05 年第一季度大致相同。正如我們過去所說，我們預計單個 SKU 的 ASP 將同比下降 20% 至 25%，並且預計混合組合 ASP 同比僅下降 10% 至 15%因為我們能夠在我們的新產品上實現更高的價格。在第二季度，由於我們新產品的持續強勢，我們的產品組合平均售價僅同比下降 9%。第二季度研發和 SG&A 的運營費用約為 1140 萬美元，比上一季度增加了 210 萬美元，這正是我們計劃和指導的。

So let me break this down for you. The majority of the additional spending, about $1.5 million, was allocated to our R&D activities which came in at $7.9 million. As expected, our acceleration of some of our important R&D milestones result in additional NRE expenses in Q2, 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 in our subsidiary in India. Going forward, we expect to continue to manage our R&D spending to about 70% of our revenue as we make continuous investments in people and technology to support a very competitive roadmap. Accordingly, we expect R&D in the next quarter to be about $9.3 million.

所以讓我為你分解一下。大部分額外支出（約 150 萬美元）分配給了我們的研發活動，其中有 790 萬美元。正如預期的那樣，我們一些重要的研發里程碑的加速導致第二季度的 NRE 費用增加，但更重要的是，我們還能夠填補我們的一些員工空缺，特別是在美國和我們的戰略研發領域。印度的子公司。展望未來，隨著我們對人員和技術的持續投資以支持極具競爭力的路線圖，我們預計將繼續將我們的研發支出控制在我們收入的 70% 左右。因此，我們預計下一季度的研發費用約為 930 萬美元。

SG&A expenses in the second quarter were $3.5 million, which is a $540,000 increase from the previous quarter. This increase is mostly driven by additional costs associated with our Sarbanes-Oxley compliance. For the third quarter of 2005, we expect SG&A to increase by about $400,000. Our noncash compensation charge included, as always, elements of amortization of deferred compensation and some variable charges, and for the first time, a charge for amortizing the expense of restricted share grants that I mentioned earlier. We booked $100,000 charge for this. Going forward, we expect our noncash stock compensation charges to be approximately $520,000 in the third quarter of fiscal '05. However, this stock compensation charge will again include a small variable element based on our ending stock price and therefore the exact amount is hard to predict.

第二季度的 SG&A 費用為 350 萬美元，比上一季度增加了 54 萬美元。這一增長主要是由與我們的 Sarbanes-Oxley 合規性相關的額外成本推動的。對於 2005 年第三季度，我們預計 SG&A 將增加約 400,000 美元。我們的非現金補償費用一如既往地包括遞延補償的攤銷和一些可變費用，並且首次包括我之前提到的限制性股票授予費用的攤銷費用。我們為此預訂了 100,000 美元的費用。展望未來，我們預計 05 財年第三季度的非現金股票補償費用約為 520,000 美元。但是，該股票補償費用將再次包括基於我們的期末股票價格的一個小變量元素，因此很難預測確切的金額。

So now let's turn to the balance sheet. Our accounts receivable were 25.2 million and our inventory balance as of June 30 was at $1.1 million, all of which is finished goods. Now this balance is quite low. It represents only about three to four days of inventory which is certainly below our targeted goal of thirty days. The explanation for this is in our deferred revenue for this quarter. Demand at the very end of the calendar quarter was stronger then we initially expected and so we responded to that. These shipments late in the calendar quarter are not included in our second quarter revenue in accordance with our revenue recognition policy with which I think you are very familiar by now. Rather, these shipments were deferred. Our deferred income position on the balance sheet representing the gross margin for those shipments increased from 4 to over $5 million at the end of Q2. So we ended the quarter with very positive momentum and we're now increasing our inventory back to a more normalized level as we prepare for a significant ramp in demand.

所以現在讓我們轉向資產負債表。我們的應收賬款為 2520 萬，截至 6 月 30 日，我們的庫存餘額為 110 萬美元，所有這些都是製成品。現在這個餘額很低。它僅代表大約三到四天的庫存，這肯定低於我們 30 天的目標。對此的解釋是我們本季度的遞延收入。本季度末的需求比我們最初預期的要強，因此我們對此做出了回應。根據我們的收入確認政策，這些日曆季度末的發貨不包括在我們的第二季度收入中，我認為您現在已經非常熟悉了。相反，這些貨物被推遲了。在第二季度末，我們在資產負債表上的遞延收入頭寸代表了這些貨物的毛利率從 4 美元增加到超過 500 萬美元。因此，我們以非常積極的勢頭結束了本季度，我們現在正在將庫存增加回更正常的水平，因為我們為需求的大幅增長做準備。

We generated a quarterly positive cash flow from operations in the second quarter, more than $30 million. This is taking into account a $4 million tax payment we made this quarter. So our cash and short-term investments increased another 10% to be more than $150 million at the end of the second quarter.

我們在第二季度從運營中產生了超過 3000 萬美元的季度正現金流。這是考慮到我們本季度繳納的 400 萬美元稅款。因此，我們的現金和短期投資在第二季度末又增加了 10%，超過 1.5 億美元。

Headcount at the end of the quarter was about 228. We added 34 employees during the second quarter, more than 80% 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, about half of our overall headcount was based in Hyderabad, India.

本季度末員工人數約為 228 人。我們在第二季度增加了 34 名員工，其中 80% 以上是研發人員。在本季度末，我們四分之三以上的總員工專注於我們當前或戰略性的研發活動，而且我們總員工中約有一半位於印度海得拉巴。

We recently moved into our new, more cost effective office in a much larger location in San Jose that offers us a more integrated space in which to expand. In addition, we recently purchased real estate in Hyderabad, India, close to the new planed international airport, where we expect to complete the construction of a new building in the second half of 2006 to support our planned growth in the coming years.

我們最近搬進了位於聖何塞更大位置的新的、更具成本效益的辦公室，這為我們提供了一個更完整的擴展空間。此外，我們最近在印度海得拉巴購買了房地產，靠近新規劃的國際機場，我們預計將在 2006 年下半年完成新大樓的建設，以支持我們未來幾年的計劃增長。

We're excited about the back-to-school and holiday seasons and believe we're very well positioned for significant growth in the second half of the year. We believe that our revenue for the third quarter will be in the range of $50 million to $60 million. And we recognize that this is a slightly broader range than what you're used to see from us and let me explain why. We expect September to be extraordinary strong month. Let me remind you of our conservative revenue recognition policy that has us cutting off GAAP revenue about three weeks before the end of the month, so relatively early in September. Accordingly, the exact timing of shipments within the month of September decides what we recognize as revenue for the third quarter and what will be deferred at the end of September.

我們對返校和假期感到興奮，並相信我們已經為下半年的顯著增長做好了準備。我們相信我們第三季度的收入將在 5000 萬美元到 6000 萬美元之間。我們認識到，這比您過去從我們這裡看到的範圍要寬一些，讓我解釋一下原因。我們預計 9 月將是非常強勁的月份。讓我提醒您我們保守的收入確認政策，該政策要求我們在月底前大約三週（即相對較早的 9 月）切斷 GAAP 收入。因此，9 月份內發貨的確切時間決定了我們確認第三季度的收入以及將在 9 月底推遲的收入。

Operating expenses are expected to be approximately $13.2 million and we expect our stock based compensation charges to be about $520,000 and GAAP net income per diluted share to be between $0.28 and $0.36, based on approximately 26 million weighted average shares outstanding. Non-GAAP net income per diluted share, excluding our compensation charges, is expected to be between $0.30 and $0.38. At this time, I would like to turn the call back over to Gary for his comments.

運營費用預計約為 1320 萬美元，我們預計基於股票的薪酬費用約為 520,000 美元，GAAP 每股攤薄淨收益將在 0.28 美元至 0.36 美元之間，基於約 2600 萬股加權平均流通股。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 0.30 美元至 0.38 美元之間。在這個時候，我想把電話轉回給加里徵求他的意見。

Thank you, Olav. As you see from a financial standpoint, the second quarter was a great success. It was also a tremendous success from an operational standpoint as well. Our entire PortalPlayer team has continued to execute impeccably on our business plan and product roadmap in supporting our world-class customers. This past quarter we focused on seamlessly and successfully ramping the production of our new 5022 device and transitioning from our 5022 device to this new one. As I said earlier, we reached a significant milestone of shipping more than 6 million 5022 devices to date. With the strength and support of our world-class partners, UMC and Edified Logic, ramping production on .13 microprocess was fast and seamless. In fact, it only took about three months for us to achieve full volume production. We believe this is a great testament to speed and flexibility of our operating model. The move to .13 microprocess was an additional factor that allowed us to reduce the chip power consumption, resulting in significantly improved battery life. With the 5022, we have also successfully developed a unified storage platform, or USP, that works seamlessly and interchangeably with both hard drive and flash storage media.

謝謝你，奧拉夫。從財務角度來看，第二季度取得了巨大成功。從操作的角度來看，這也是一個巨大的成功。我們整個 PortalPlayer 團隊繼續無可挑剔地執行我們的業務計劃和產品路線圖，以支持我們的世界級客戶。在上個季度，我們專注於無縫並成功地增加新 5022 設備的生產，並從我們的 5022 設備過渡到這個新設備。正如我之前所說，我們達到了迄今為止出貨超過 600 萬台 5022 設備的重要里程碑。在我們的世界級合作夥伴 UMC 和 Edified Logic 的力量和支持下，0.13 微工藝的產量快速且無縫。事實上，我們只用了三個月左右的時間就實現了量產。我們相信這是對我們運營模式的速度和靈活性的一個很好的證明。轉向 0.13 微處理是使我們能夠降低芯片功耗的另一個因素，從而顯著提高了電池壽命。借助 5022，我們還成功開發了統一存儲平台（USP），它可以與硬盤驅動器和閃存存儲介質無縫且可互換地工作。

In doing so, we offer our customers more flexibility in designing and producing the new product models. With our 5022 device, customers have the option to choose the other system components they want to use in their designs or for those who want to go with a fully integrated approach, they can choose to use our 5024 device. In falling on that same trend, we expect our current and future platforms that support video capabilities will also offer our customers the flexibility to choose our natively supported video or choose a higher performance external video code process using, for example, our CSI interface.

通過這樣做，我們為客戶在設計和生產新產品模型方面提供了更大的靈活性。使用我們的 5022 器件，客戶可以選擇他們想在設計中使用的其他系統組件，或者對於那些想要採用完全集成方法的人，他們可以選擇使用我們的 5024 器件。在落入同一趨勢的同時，我們預計支持視頻功能的當前和未來平台也將為我們的客戶提供選擇我們本機支持的視頻或使用例如我們的 CSI 接口選擇更高性能的外部視頻代碼處理的靈活性。

In Q2, we also focused our operational efforts on planning for the second half of this year. We have been working closely with our supply chain partners to secure the additional capacity and testers needed to meet the significant increase in demand that is expected. We believe we enter the second half of the year well-positioned to handle the significant forecasted ramp in demand.

在第二季度，我們還將運營重點放在了今年下半年的規劃上。我們一直與我們的供應鏈合作夥伴密切合作，以確保滿足預期需求的顯著增長所需的額外容量和測試人員。我們相信，我們進入下半年已做好準備應對預計的需求大幅增長。

The last operational milestone I'd like to mention is that in Q2, we take the next generation of our technology in preparation for the 2006 product cycle. In the consumer electronics industry, which is very competitive and fast-paced, it is critical that we remain on the forefront of technology and innovation and that we achieve our billables on time. I am very proud of the entire PortalPlayer team for executing crisply on this front. We not only met all our production goals but in some cases, we even exceeded them. At the same time, we continue to build our power mode chip design team to broaden our product offering and accelerate our roadmap.

我想提到的最後一個運營里程碑是，在第二季度，我們採用了我們的下一代技術，為 2006 年的產品週期做準備。在競爭激烈且快節奏的消費電子行業中，我們必須始終站在技術和創新的前沿，並按時完成計費。我為整個 PortalPlayer 團隊在這方面的出色執行感到非常自豪。我們不僅實現了所有的生產目標，而且在某些情況下，我們甚至超過了它們。同時，我們繼續建立我們的功耗模式芯片設計團隊，以擴大我們的產品範圍並加快我們的路線圖。

Now let's take a look at design wins. At this point in the year, the vast majority of design wins for personal media players that are planned to be introduced in 2005 are already locked in. I will not break out the number of design wins by customers' names but I will say that we are extremely satisfied with our wins. In particular, we're delighted with our success of flash based designs. Based on the design wins, we expect to see a significant portion of our revenue coming from the flash market beginning in the third quarter. On our last quarter's earnings calls, we told you that the high-capacity flash player market could exceed 20% of the total flash player volume run rate by the end of 2005. Well, due to non-flash price declines, we believe that market demand for high-capacity flash players has accelerated and could now exceed 20% of the total flash run rate sometime before the end of 2005.

現在讓我們來看看設計勝利。在這一年的這個時候，計劃在 2005 年推出的個人媒體播放器的絕大多數設計中標已經鎖定。我不會按客戶的名字細分設計中標的數量，但我會說我們對我們的勝利非常滿意。特別是，我們對基於閃存的設計的成功感到高興。根據設計勝利，我們預計從第三季度開始，我們的大部分收入將來自閃存市場。在我們上個季度的財報電話會議上，我們告訴過您，到 2005 年底，大容量閃存播放器市場可能會超過閃存播放器總銷量的 20%。好吧，由於非閃存價格下跌，我們認為市場對大容量閃存播放器的需求已經加速，現在可能會在 2005 年底之前的某個時候超過總閃存運行率的 20%。

Now let's look at some of the factors that are driving the use of content in high-capacity feature rich personal media players. First is subscription services. We believe that subscription services will fuel demand for high-capacity players since consumers can pay a monthly flat fee to have instant access to thousands of songs on a personal media player without buying each song individually. Yahoo has recently introduced a very low-cost distribution model that may prove attractive to consumers and Microsoft technology allows both a subscription model and a download model, which could help drive interest in the marketplace.

現在讓我們來看看驅動在大容量功能豐富的個人媒體播放器中使用內容的一些因素。首先是訂閱服務。我們相信訂閱服務將刺激對大容量播放器的需求，因為消費者可以每月支付固定費用，在個人媒體播放器上即時訪問數千首歌曲，而無需單獨購買每首歌曲。雅虎最近推出了一種成本極低的分銷模式，這種模式可能對消費者有吸引力，而微軟的技術允許訂閱模式和下載模式，這有助於推動市場的興趣。

The second driver is podcasting. With Apple's launch of iTunes 4.9, which integrates podcasting into iTunes, this pushed what was previously a niche functionality into the mainstream. Within two days of the launch, customers subscribed to more than 1 million podcasts. With the content people store on their personal media players expanding beyond just music, they're going to need higher capacity products to store and manage that content.

第二個驅動因素是播客。隨著 Apple 推出將播客集成到 iTunes 中的 iTunes 4.9，這將以前的小眾功能推向了主流。在發布後的兩天內，客戶訂閱了超過 100 萬個播客。隨著人們存儲在個人媒體播放器上的內容不僅僅局限於音樂，他們將需要更高容量的產品來存儲和管理這些內容。

The third key driver is streaming broadcast services, such as satellite radio. We believe that these new types of services, which can offer consumers time shifted radio content on their personal media players so they can play back whenever or wherever they want, will show good growth.

第三個關鍵驅動因素是流媒體廣播服務，例如衛星廣播。我們相信，這些新型服務可以為消費者提供個人媒體播放器上的時移廣播內容，以便他們可以隨時隨地播放，將顯示出良好的增長。

And the last driver is time shifted video. The best example of this today is the TiVo DVR. We are now seeing personal media players with 60 or even 80 gigabytes of storage, which is about the same as a personal DVR today. With this level of storage, consumers can use their personal media player to store movies, TV shows, music videos and more. Though this market is small today, we believe that continued innovation will continue in this space.

最後一個驅動因素是時移視頻。今天最好的例子是 TiVo DVR。我們現在看到的個人媒體播放器具有 60 甚至 80 GB 的存儲空間，這與今天的個人 DVR 差不多。有了這種存儲級別，消費者可以使用他們的個人媒體播放器來存儲電影、電視節目、音樂視頻等。儘管今天這個市場很小，但我們相信這個領域將繼續創新。

All of these trends point towards high-capacity players and the need for a powerful solution that can manage the content, catalog the data and provide a robust and snappy user experience. This is exactly where we excel.

所有這些趨勢都指向高容量播放器，並且需要一個強大的解決方案來管理內容、編目數據並提供強大而快速的用戶體驗。這正是我們擅長的地方。

In the second quarter, we also dedicated much of our time and effort in furthering our product development and innovation. We believe the devices in the near future will need to be constantly connected. And as such, we have accelerated our investment in a range of wireless technologies. The MP3 phenomenon has clearly entered the cell phone market. As happens with most technologies, it will take a couple of iterations to hit the market's sweet spot. The cell phones that are coming out this year are limited in battery life, cannot incorporate as many songs as a stand-alone player, and are inhibited by music distribution and content protection limitations. We think the next wave has to overcome these limitations and should be driven by and targeted to specific lifestyle type devices. We believe that these unified devices represent an exciting market opportunity down the road and we are making the appropriate investments in this area today.

在第二季度，我們還投入了大量時間和精力來推進我們的產品開發和創新。我們相信，在不久的將來，這些設備將需要不斷地連接。因此，我們加快了對一系列無線技術的投資。 MP3現象顯然已經進入了手機市場。與大多數技術一樣，需要幾次迭代才能達到市場的最佳位置。今年推出的手機電池壽命有限，無法像獨立播放器那樣容納那麼多歌曲，並且受到音樂分發和內容保護限制的限制。我們認為下一波浪潮必須克服這些限制，並應由特定生活方式類型的設備驅動並定位。我們相信，這些統一的設備代表著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。

In summary, we're having great success with our current customer base. Our 5022 and 5024 devices significantly raise the bar of technology offerings. We are excited about the momentum that is building for the second half of the year for both existing and new customers and we continue to invest in future technologies. We're 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 roadmaps. Operator, we are ready for questions.

總之，我們在現有客戶群方面取得了巨大成功。我們的 5022 和 5024 設備顯著提高了技術產品的標準。我們對今年下半年為現有客戶和新客戶建立的勢頭感到興奮，我們將繼續投資於未來的技術。我們很高興現在打開電話來回答您對我們業務的問題，但我確實想提醒大家，我們的政策是不對特定客戶、產品或路線圖發表評論。接線員，我們準備好提問了。

[ OPERATOR INSTRUCTIONS ] And we'll go first to Randy Abrams, Credit Suisse First Boston.

[ 操作員說明 ] 我們將首先前往瑞士信貸第一波士頓的 Randy Abrams。

Good afternoon, guys. First question. Wanted to see if you could help us understand the guidance range a little more. How much do have factored in from the new products? How much from the flash market versus traditional hard drive products?

下午好，伙計們。第一個問題。想看看您是否可以幫助我們更多地了解指導範圍。從新產品中考慮了多少？閃存市場與傳統硬盤產品相比有多少？

Hi, Randy. I don't think I can give you the data. So we don't break out how we arrive at our revenue guidance. We've given a 50 to $60 million range, a little broader than what you saw last quarter, because we see a very active shipping month in September. And our revenue recognition policy cuts revenue off pretty early in September. So between deferred revenue and recognized revenue, a change of a few days of actual ship dates could make a difference there between recognized and deferred, but breaking it out in terms of flash or hard drive is nothing that I want to go into right now.

嗨，蘭迪。我想我不能給你數據。因此，我們不會詳細說明我們是如何得出收入指導的。我們給出了 50 到 6000 萬美元的範圍，比你上個季度看到的要寬一些，因為我們看到 9 月份的出貨量非常活躍。我們的收入確認政策在 9 月初就削減了收入。因此，在遞延收入和確認收入之間，實際發貨日期的幾天變化可能會在確認和遞延之間產生差異，但我現在不想在閃存或硬盤驅動器方面打破它。

Okay, maybe take it more on a market level. You were talking about more than 20% of the flash run rate by year end for high end flash. Could you talk about what type of run rate you see for the overall flash market and what kind of expectations are you expecting for the hard drive market?

好吧，也許更多地在市場層面上看待它。你說的是高端閃存到年底的閃存運行率超過 20%。您能否談談您對整個閃存市場的運行速度以及您對硬盤市場的期望？

Hi, Randy, it's Gary. Overall, we still see both segments being very robust. Reflecting back on some of the Gardner (?) forecasts for this year, as you're probably aware, they're forecasting 28 million units hard drive forecast this year, flash 46 million this year, with hard drive going over 50%. And they forecast flash growing only about 35%. We think the flash market in itself is continuing to accelerate so that is, we think, still going to experience robust growth there. I think, bottom line, is we're seeing the decreasing demand price is allowing this high-capacity segment to really become viable and we're excited to see growth from high-capacity hard drives, mid range hard drive and in the high end flash.

嗨，蘭迪，我是加里。總體而言，我們仍然認為這兩個細分市場都非常強勁。回顧一下 Gardner (?) 對今年的一些預測，您可能已經知道，他們預測今年將有 2800 萬個硬盤驅動器，今年閃存 4600 萬個，硬盤驅動器將超過 50%。他們預測閃存增長僅約 35%。我們認為閃存市場本身正在繼續加速，因此我們認為，該市場仍將經歷強勁增長。我認為，最重要的是，我們看到需求價格的下降正在讓這個高容量細分市場真正變得可行，我們很高興看到大容量硬盤、中檔硬盤和高端硬盤的增長閃光。

Okay, and then for average selling prices, want to see if you could maybe walk through an approximate way to look at the new flash product, how it fares relative to the hard drive product? And then also, how does it split out between yourselves & Ostro and Microsystems? Would you split that ASP?

好的，然後對於平均售價，想看看您是否可以大致了解一下新的閃存產品，它相對於硬盤產品的價格如何？然後，它是如何在你們自己、Ostro 和 Microsystems 之間分離的？你會拆分那個 ASP 嗎？

So the ASP is for both segments are similar. And I can't break out the AMS between us and AMS. I can tell you that the AMS ship is building .35 micron process. It's a very mature process and it's certainly not an expensive process. So I hope that answers a little bit of your question.

因此，這兩個細分市場的 ASP 是相似的。而且我無法打破我們和 AMS 之間的 AMS。我可以告訴你，AMS 船正在建造 0.35 微米工藝。這是一個非常成熟的過程，當然也不是一個昂貴的過程。所以我希望這能回答你的一些問題。

Okay. Just to clarify, you'll get the same ASP for both flash and hard drive and then Oscar would be incremental above that for them?

好的。澄清一下，你會為閃存和硬盤驅動器獲得相同的 ASP，然後 Oscar 會在它們之上增加嗎？

That's probably a way to look at it, yes. Randy, just to clarify. Remember that both of those products are incorporated in a system and package, so the resulting ASP for the system and package is the ASP comparisons we're referring to. I wouldn't want you to add on top of that the Austriamicrosystem cost. We as an ASP supplier to our customers integrate their dye and we're a one-stop shop to our customers and we give them one integrated ASP point.

這可能是一種看待它的方式，是的。蘭迪，澄清一下。請記住，這兩種產品都包含在系統和軟件包中，因此系統和軟件包的 ASP 就是我們所指的 ASP 比較。我不希望你再加上奧地利微系統的成本。我們作為客戶的 ASP 供應商集成他們的染料，我們是客戶的一站式商店，我們為他們提供一個集成的 ASP 點。

Okay, and just a final question. Looks like gross margins held up around 43% toward the higher end. Is that something we should expect to continue in that range? And what are kind of the big swing factors you see over the next quarter or two on the gross margin side?

好的，最後一個問題。看起來毛利率在高端保持在 43% 左右。這是我們應該期望在這個範圍內繼續發生的事情嗎？在毛利率方面，您在未來一兩個季度看到哪些重大波動因素？

I think we're very comfortable with the model. I think it was nice to be at the high end of that 41 to 44% model that we referred to. The secret here, of course, is innovation. If you keep the innovation going and add new features, you can increase the selling price to your customers. So frankly, that's what we focus on is integration, generation and of course, keep our operations teams working. So we don't see a change, fundamental change, in that model at this point of 41 to 44%.

我認為我們對模型非常滿意。我認為處於我們提到的 41% 到 44% 模型的高端是很好的。當然，這裡的秘訣在於創新。如果您保持創新並添加新功能，則可以提高對客戶的銷售價格。坦率地說，這就是我們關注的集成、生成，當然還有讓我們的運營團隊繼續工作。因此，我們在該模型中沒有看到 41% 到 44% 的變化，根本性的變化。

Okay, thanks a lot guys.

好的，非常感謝各位。

We'll go next to Glen Yeung, Smith Barney.

我們會去史密斯巴尼的 Glen Yeung 旁邊。

Hi, this is Jim for Glen. On the gross margin, a quick follow-up. Was there any benefit from previously written off inventory?

嗨，我是格倫的吉姆。關於毛利率，快速跟進。以前註銷的庫存有什麼好處嗎？

Yes, there's always of a little bit of that in every quarter, Jim. It was less than a percent again, like comparable to last quarter. These are mostly products that we're shipping to replace some of the earlier product with some of our customers.

是的，吉姆，每個季度總有一點點。再次低於百分之一，與上一季度相當。這些主要是我們運送的產品，以替換我們的一些客戶的一些早期產品。

Okay and then finally looking out into seasonality. You mentioned strength in September. Any outlook that we can expect going into Q4 for linearity for the quarter?

好的，然後最後研究季節性。你在九月提到了實力。我們可以期待進入第四季度的本季度線性度的任何前景嗎？

We don't give guidance that far out at this point. We're keeping our comments directly tied to Q3. We have clearly given color what we think the second half is clearly going to be a very strong half for us, but sorry, we have not broken out specific Q4 guidance at this point.

在這一點上，我們沒有給出那麼遠的指導。我們將我們的評論直接與第三季度聯繫起來。我們已經清楚地給出了我們認為下半年對我們來說顯然將是一個非常強大的一半，但抱歉，我們目前還沒有公佈具體的第四季度指導。

Okay, this quarter Q3 will be back end-loaded towards September, is that correct?

好的，本季度 Q3 將在 9 月結束，對嗎？

September is very active shipping month for us. Yes.

九月對我們來說是非常活躍的運輸月份。是的。

We will go next to Shawn Slayton, SG Cowen.

我們將在 SG Cowen 的 Shawn Slayton 旁邊。

Good afternoon. Nice execution, nice guidance. Gary, can you help us understand what's happening in your estimation on the non iPod side of the business? Why is that, on a percentage basis, why is that business shrinking for you here, at least in the very near-term? Is it a function of the hardware, user interface, form factor or does it have something to do on the content side of things, the online content side of things?

下午好。很好的執行，很好的指導。 Gary，您能幫助我們了解您對非 iPod 業務方面的估計嗎？為什麼在百分比的基礎上，為什麼你的業務在這裡萎縮，至少在短期內？它是硬件、用戶界面、外形因素的功能，還是與事物的內容、在線內容有關？

Both.

兩個都。

Actually I think the major contributor is is neither of those. I think the major contributor, though those two are important, is frankly just the seasonality of the consumer cycle. Remember that Q2 is traditionally the weakest quarter for this segment and I think with the factors you just indicated, I think frankly it was a sluggish quarter.

實際上，我認為主要貢獻者都不是。我認為主要貢獻者雖然這兩個很重要，但坦率地說只是消費周期的季節性。請記住，第二季度傳統上是該細分市場中最疲軟的季度，我認為考慮到您剛才指出的因素，坦率地說，這是一個低迷的季度。

Why would you have different seasonality when your largest customer and the customers that you have away from your largest customer?

當您的最大客戶和您擁有的客戶遠離您的最大客戶時，為什麼會有不同的季節性？

Well, I think that is where it then kicks into the point you mentioned, the acceleration and ease of use of the very large customers we have of that product in the market is continuing to, as you said, get very strong response in the market. The ease of use, the integration into the services, as you mentioned, I think is very key. So I think we're seeing continued both response to the quality of the products that are out there in the market and also the great branding that goes with those leadership products.

好吧，我認為這就是你提到的重點，正如你所說，我們在市場上擁有該產品的非常大客戶的加速和易用性繼續在市場上獲得非常強烈的反應.正如您所提到的，易用性，與服務的集成，我認為是非常關鍵的。因此，我認為我們看到對市場上產品質量的持續反應以及與這些領先產品相結合的偉大品牌。

Okay. On the R&D side, you're clearly adding headcount. Can you help us understand -- help us understand where you're adding heads and maybe on the SoC information side of things. Are you guys -- do you have any strategy in place to take in-house some of the services currently being offered to you by your factory partners? Your fab partners or third parties?

好的。在研發方面，您顯然在增加員工人數。您能否幫助我們理解 - 幫助我們了解您在哪裡添加磁頭，也許是在 SoC 信息方面。你們——你們有什麼策略可以在內部接受工廠合作夥伴目前向你們提供的一些服務嗎？您的晶圓廠合作夥伴或第三方？

Let me address the R&D headcount in general. First of all, we continue to hire smart people across the board, so it's both in the Silicon engineering and architecture and software and in firmware and we're finding great folks both here in the U.S. and India. So I wouldn't specifically point out a particular area where we're adding heads, and aiming to now produce we have parallel development teams. We have so many ideas that we can execute. Some of your question from key customers are actually building out parallel development teams. Just over a year ago, we probably had one key engineering team running here. With respect to a transition of bringing more manufacturing capability in-house, as you know, we look at that on each chip generation to generation and we are slowly stepping up some of that expertise, but we have not particularly accelerated our efforts. We are looking at that on a case by case basis.

讓我來談談一般的研發人員數量。首先，我們繼續全面招聘聰明人，所以無論是在矽工程、架構、軟件和固件方面，我們都在美國和印度找到了優秀的人才。所以我不會特別指出我們正在增加人頭的特定領域，並且現在我們的目標是生產我們有平行的開發團隊。我們有很多可以執行的想法。您從主要客戶那裡提出的一些問題實際上是在建立並行開發團隊。就在一年前，我們可能有一個關鍵的工程團隊在這裡運行。關於在內部引入更多製造能力的過渡，如您所知，我們會在每一代芯片上進行研究，並且我們正在慢慢加強其中的一些專業知識，但我們並沒有特別加快努力。我們正在逐案研究。

Okay, fair enough. My last question here and I'll yield the floor. So this quarter you guys are expecting direct revenue from 5024. This quarter, are flash player chips sales going to contribute to greater customer diversity? That's all I have.

好吧，夠公平的。我在這裡的最後一個問題，我將讓步。所以本季度你們預計來自 5024 的直接收入。本季度，閃存播放器芯片的銷售將有助於提高客戶多樣性嗎？那是我的全部了。

Repeat the question on diversity.

重複關於多樣性的問題。

This quarter, are your flash player IC sales going to contribute to greater customer diversity?

本季度，您的閃存播放器 IC 銷售是否有助於提高客戶多樣性？

We not going to break out specifics of where our products go to. As you know, that's per our policy. As we look at the strength of our flash player solution, as we targeted that high-performance slot, what I will say is we have interest across the board, from both major customers that you would be used to and also customers that would not be our traditional customer base. So we plan on exploiting both of those.

我們不會詳細說明我們的產品去向。如您所知，這是我們的政策。當我們看到我們的 Flash 播放器解決方案的優勢時，當我們瞄準高性能插槽時，我要說的是，我們對您會習慣的主要客戶和不習慣的客戶都有興趣我們的傳統客戶群。所以我們計劃利用這兩者。

So if I understand you correctly, you will recognize flash player IC revenue from what we call, meaningful flash player IC revenue, from more than one customer this quarter, Gary?

因此，如果我對您的理解正確，您會從我們所說的、有意義的 Flash 播放器 IC 收入中確認 Flash 播放器 IC 收入，該收入來自本季度多個客戶，Gary？

We haven't broken the number of customers just because we don't want to get into a constant reporting of --

我們沒有打破客戶數量只是因為我們不想持續報告——

Not a number. Just more than one.

不是一個數字。不止一個。

Yes.

是的。

Okay, thanks guys.

好的，謝謝各位。

We'll go next to Quinn Bolton, Needham and Company.

我們將在 Quinn Bolton、Needham and Company 旁邊進行。

Just a clarification on that flash. I think you mentioned that you would see significant contribution from the 5024 in the third quarter. I'm just wondering is that, you guys typically define significant as, say, 10% of revenues. Is there any kind of number you can put behind that? And then I have a couple of follow ups. Thanks.

只是對那個閃光的澄清。我認為您提到您將在第三季度看到 5024 的重大貢獻。我只是想知道，你們通常將重要定義為收入的 10%。有什麼數字可以放在後面嗎？然後我有幾個跟進。謝謝。

You know, you asked the same question a quarter ago and I think I said significant means between 10 and 90. So I don't want to be repetitive. I think significant is a good number and it's certainly more than 10. Let me be a little more specific this quarter. Sorry I can't be more specific.

你知道，你在一個季度前問過同樣的問題，我想我說的是 10 到 90 之間的顯著平均值。所以我不想重複。我認為顯著是一個很好的數字，肯定會超過 10 個。讓我在本季度更具體一點。對不起，我不能更具體。

More than 10 is fine. And then one for Gary. You talked about your next generation device that just came out. I know you guys haven't formally introduced the platform, but you've talked in the past about being able to support video coprocessors through your existing solutions. I'm kind of wondering, does this next generation chip sort of remove the need for a video coprocessor? Can you talk about whether you can support MPEG4, H.T64 video codex with the platform that you plan to release for 2006.

超過10個就好了。然後是加里的一個。您談到了剛剛問世的下一代設備。我知道你們還沒有正式介紹這個平台，但你們過去曾談到能夠通過現有解決方案支持視頻協處理器。我有點想知道，這種下一代芯片是否可以消除對視頻協處理器的需求？您能否談談您計劃在 2006 年發布的平台是否支持 MPEG4、H.T64 視頻編解碼器。

After the fact, the base platform versus tipping off the competition to tomorrow's platform. So on today's platform, we natively support video on the 5022. So we should not necessarily assume that we have to always use a video coprocessor. From time to time, our customers, from time to market, we'll partner our chip out to different networking solutions, different video solutions, and so we have many support for video today and the 5022 generation. On the next generation, for competitive reasons I don't particularly want to tip our hat there, but I think it's fair to say, I think you know we push the envelope on introducing new features that we believe will bring innovation to the market and that will certainly continue along those same trends.

事實上，基礎平台與將競爭推向明天的平台。所以在今天的平台上，我們在 5022 上原生支持視頻。所以我們不一定要假設我們必須始終使用視頻協處理器。有時，我們的客戶，有時會與市場合作，將我們的芯片用於不同的網絡解決方案、不同的視頻解決方案，因此我們對今天的視頻和 5022 代有很多支持。關於下一代，出於競爭原因，我並不特別想在這方面表現得淋漓盡致，但我認為可以公平地說，我認為您知道我們在引入新功能方面突破極限，我們相信這些新功能將為市場帶來創新，並且這肯定會沿著同樣的趨勢繼續下去。

It sounded like you have come up with the scheme for the 5024, where you add the analog support chip in a system and package devices. Can you talk about whether, it looks like you're planning to do the same thing with next year's platform, to offer that flexibility to the customer base?

聽起來您已經提出了 5024 的方案，您在系統和封裝設備中添加了模擬支持芯片。您能否談談您是否計劃在明年的平台上做同樣的事情，為客戶群提供這種靈活性？

Again, I don't want to pre-announce our products. In general, the two axis, of course, you work on is actually cost and integration and power and performance. And so I think the combination of those four elements that we're constantly working on, so we intend to move quickly. I think but the tapeout this time of year points very well to us getting the timing and sequence right for the 2006 product introduction cycle. In this space, you really do have to get a line correctly to really hit very cleanly the very large customers' product production cycle so that's why that tapeout in Q2 is very critical to us.

同樣，我不想預先宣布我們的產品。一般來說，這兩個軸，當然，你工作的實際上是成本和集成以及功率和性能。所以我認為我們一直在努力的這四個要素的結合，所以我們打算迅速採取行動。我認為，但每年這個時候的流片非常清楚地表明我們在 2006 年產品推出週期中獲得了正確的時間和順序。在這個領域，你確實必須正確地獲得一條生產線才能真正非常乾淨地擊中非常大客戶的產品生產週期，這就是為什麼第二季度的流片對我們來說非常重要。

Okay, and then just lastly, it looks like the 5022 is now the majority of the hard drive revenues. Can you say when you expect the 5020 to phase out of the revenue stream?

好的，最後，看起來 5022 現在是硬盤收入的主要部分。您能說一下您預計 5020 何時會逐步退出收入流嗎？

I thank it will phase out of the revenue stream by the end of this year.

我感謝它將在今年年底前逐步退出收入流。

Okay, thank you.

好的謝謝你。

We go next to Jason Pflaum with Thomas Weisel Partners.

我們和 Thomas Weisel Partners 一起來到 Jason Pflaum。

Yes, good afternoon. To start out, looking again at your guidance and your commentary on the flash market, or the flash segment being a significant portion of your revenue. Is if it isn't greater than 10% or so, it would seem to imply that your hard drive business would only be up modestly. Is this more out of conservatism or are we seeing other dynamics at play?

是的，下午好。首先，請再次查看您對閃存市場的指導和評論，或者閃存部分是您收入的重要組成部分。如果它不大於 10% 左右，這似乎意味著您的硬盤業務只會適度增長。這更多是出於保守主義還是我們看到了其他動態？

You know, the guidance, Jason, 50 to 60 is certainly a wide range. I don't thank you can read any kind of conservativism into this right now. We're looking at [inaudible] right now. It's still beyond September at this time. It's hard to actually answer that question without going into detail of what we see in the breakout flash versus hard drive so I can't really comment any further than that.

要知道，傑森的指導，50到60的範圍肯定很廣。我不感謝你現在可以讀到任何形式的保守主義。我們現在正在研究 [音頻不清晰]。此時仍是九月之後。如果不詳細說明我們在突破性閃存與硬盤驅動器中看到的內容，很難真正回答這個問題，所以我真的不能再評論了。

Okay and maybe just thinking about the end of the quarter. It seems to be somewhat back end loaded yet exiting the June quarter, you saw some good strength. Has that strenth continued into July?

好的，也許只是在考慮本季度末。它似乎有點後端負載但退出六月季度，你看到了一些不錯的力量。這種力量一直持續到七月嗎？

It was a very busy couple of days at the end of the quarter. July is not the busiest of all months. So I can say that. July was as expected, I guess. August is going to be stronger than July and then September is really ramping up in terms of shipments.

在本季度末，這是非常忙碌的幾天。七月並不是所有月份中最忙碌的。所以我可以這麼說。我猜，七月正如預期的那樣。 8 月將強於 7 月，然後 9 月的出貨量確實在增加。

Okay, and then I know you kept making comments regarding your inventory levels, they're running a little bit below normalized levels. Are you comfortable with your ability or flexibility to hit any upside demand that may come your way throughout the quarter? In other words, if you could help us understand, are some of your logistics' partners sitting on a lot of finished goods right now?

好的，然後我知道您一直在對您的庫存水平發表評論，它們的運行水平略低於正常水平。您是否對自己滿足本季度可能出現的任何上行需求的能力或靈活性感到滿意？換句話說，如果您能幫助我們了解，您的一些物流合作夥伴現在是否坐擁大量成品？

Yes, how flexible can we respond to upside. What we did in the end of the quarter is actually proof of how flexible we are. We saw some upside and we responded to it in a very flexible way. We're building inventory levels back up to a normal level, a more normalized level, finding that all the target models, 30 days. It's relatively, certainly not an overbid. I agree with that. So in summary, it's a snapshot in time. We respond to some upside with flexibility and I'm very positive that we can continue to respond to some additional upside if it came in the future with the same flexibility.

是的，我們可以靈活地應對上行空間。我們在本季度末所做的實際上證明了我們的靈活性。我們看到了一些好處，我們以非常靈活的方式做出了回應。我們正在將庫存水平恢復到正常水平，更標準化的水平，發現所有目標模型，30 天。這是相對的，當然不是高價。我同意這一點。所以總而言之，這是一個及時的快照。我們以靈活的方式應對一些上行空間，我非常肯定，如果未來以同樣的靈活性出現，我們可以繼續應對一些額外的上行空間。

Jason, one thing that is beneficial of us with the [inaudible] we had in the 5022. We had already hitting the volumes we're hitting -- place at a longer cycle but necessary orders to our supply partners. Once you have a proven part that's shipped as many units as the 5022, you can actually then start working with your supply chain in a much more predictable manner. So when I look at the second half, I think we've planned very well to make sure that we have the necessary flexibility to be able to execute on a very strong plans for the second half.

Jason，我們在 5022 中擁有的 [聽不清] 對我們有利的一件事。我們已經達到了我們正在達到的數量 - 以更長的周期向我們的供應合作夥伴下達必要的訂單。一旦您擁有一個經過驗證的部件，它的出貨量與 5022 一樣多，您實際上就可以開始以一種更可預測的方式與您的供應鏈合作。所以當我看下半場時，我認為我們已經計劃得很好，以確保我們有必要的靈活性來執行下半場非常強大的計劃。

Okay, that's helpful. Last question, just on the handset opportunity. When do you expect the earliest chance to start recognizing some revenue there?

好的，這很有幫助。最後一個問題，只是關於手機的機會。您預計最早的機會何時開始在那裡確認一些收入？

Again, we haven't pinpointed that down at this point for externally. The pointers we would point toward would be 2006.

同樣，我們目前還沒有從外部確定這一點。我們將指向的指針將是 2006 年。

Okay, fair enough. Thanks guys.

好吧，夠公平的。多謝你們。

We'll go next to Daniel Ernst, Hudson Square Research.

我們將與哈德遜廣場研究部的丹尼爾·恩斯特（Daniel Ernst）一起討論。

Yes, good afternoon, Gary, Olav. Thanks for taking the question. Actually three, if I might. One, can you comment on how your revenues, recognized revenues, track with the sales group of end market products? And then secondly, on the the 6 million 5022s that you shipped, can you say what percentage of that was actually recognized in Q2? And then, last, can you comment on a blended ASP in the March quarter was down 8% year-and-year, less than initially expected. Could you talk about that trend in the second quarter? Thanks.

是的，下午好，加里，奧拉夫。感謝您提出問題。如果可以的話，實際上是三個。第一，您能否評論一下您的收入、確認收入如何與終端市場產品的銷售團隊保持一致？其次，在你們出貨的 600 萬個 5022 中，您能說一下在第二季度實際得到認可的百分比是多少？然後，最後，您能否評論一下 3 月份季度的混合 ASP 同比下降 8%，低於最初的預期。你能談談第二季度的趨勢嗎？謝謝。

All right, Dan, I'll definitely take the first one. The tracking of our revenue with the self group. I don't think I have sufficient visibility to really know exactly what the self group (?) is. There's numbers coming from our largest customers. There's MPD data that is actually here for the domestic market but there is a lot of seltzer ? in the non-US market. So, you know, we have a deferral policy in place. On top of that there is the supply chain into our customers has intermediaries in between the ODMs. So there's a lot of buffers in between that makes the tracking a little more difficult. Having said all that, we certainly do track it and from what we see right now, based on the limited information that I just described to you, I think we're tracking very well with those numbers.

好吧，丹，我肯定會拿第一個。使用自我組跟踪我們的收入。我認為我沒有足夠的知名度來真正確切地知道自我組（？）是什麼。有來自我們最大客戶的數字。實際上有國內市場的 MPD 數據，但有很多蘇打水？在非美國市場。所以，你知道，我們制定了延期政策。最重要的是，我們的客戶的供應鏈在 ODM 之間有中間商。所以中間有很多緩衝區，這使得跟踪變得更加困難。說了這麼多，我們當然會跟踪它，從我們現在看到的情況來看，根據我剛剛向您描述的有限信息，我認為我們對這些數字的跟踪非常好。

Great.

偉大的。

And then, I'm sorry, could you repeat your -- what was the second question?

然後，對不起，你能重複一下你的第二個問題嗎？

The second question was on the recognizing shipments of the 5022. You said you shipped 6 million through now. What percentage of that was recognized in the second quarter? And the last question was ASP trends.

第二個問題是關於 5022 的出貨確認。你說你到現在出貨了 600 萬。其中有多少百分比在第二季度得到確認？最後一個問題是 ASP 趨勢。

So we actually specifically said,as of today, so that we didn't have to break it out into quarters. So that's the information that we wanted to tell you because we're very proud of the number but we didn't want to break it out by quarter. So now I'm sorry -- are moving from one question to another. I'm sorry, repeat the third one again.

所以我們實際上從今天起特別說過，這樣我們就不必把它分成四等份。這就是我們想告訴您的信息，因為我們對這個數字感到非常自豪，但我們不想按季度細分。所以現在我很抱歉——正在從一個問題轉移到另一個問題。對不起，再重複第三個。

The trends for ASPs in the quarter. Thanks a lot.

本季度 ASP 的趨勢。非常感謝。

Sorry about that. So the trends for the ASPs, and of course, again, it was 9% down from a portfolio basis year-over-year. So comparing it to the second quarter of last year, our portfolio ASP dropped only 9%. Kind of like a 9 with the 10 to 15% that we guiding a little bit low. Our cost declined about 11% so if you compare margins year-over-year, we improved slightly. I think that's as much as I can break it down for you.

對於那個很抱歉。因此，ASP 的趨勢，當然，再一次，它比投資組合的同比下降了 9%。因此，與去年第二季度相比，我們的投資組合平均售價僅下降了 9%。有點像 9，我們指導的 10% 到 15% 有點低。我們的成本下降了約 11%，所以如果你比較去年同期的利潤率，我們會略有改善。我想這就是我可以為你分解的。

Great, that helps a lot. Thank you.

太好了，這很有幫助。謝謝你。

Thank you.

謝謝你。

We'll go next to Jason Paraschac, Kaufman Brothers.

我們將在考夫曼兄弟的 Jason Paraschac 旁邊。

Hi, good afternoon gentlemen. Couple of quick questions here. First on the manufacturing side. There's been increasing talk about factory utilizations kind of peaking out and then there was an article this morning about UMC hitting some thresholds on their utilization, starting to cut back some of the smaller customers. First, have you seen any indication that there is going to be a potential shortage? Is that plain to your planning at all and the second part of that, have you seen that affect pricing from your partners? And the second part of that is do your customers worry about your manufacturing capabilities, given the utilization rates?

嗨，先生們下午好。這裡有幾個快速問題。首先是製造方面。關於工廠利用率達到頂峰的討論越來越多，然後今天早上有一篇文章稱聯電達到了利用率的一些門檻，開始削減一些較小的客戶。首先，您是否看到任何跡象表明可能會出現短缺？這對你的計劃來說是不是很清楚，第二部分，你有沒有看到這會影響你的合作夥伴的定價？第二部分是考慮到利用率，您的客戶是否擔心您的製造能力？

The short answer is no and no. The beauty of having -- working with world-class customers is they give you great visibility and we translate that into long ordering cycles. So we feel very confident that we put those second-half plans already in place and our key suppliers know what they need to supply for us and our key customers. So that's the beauty of having the high visibility and also frankly, having the caliber of customers we do, we clearly get a great deal of attention from our large fab partners. So no, we believe we've already taken care of any potential supply chain issues from both the supply point of view and we haven't seen the pricing elements that you refer to.

簡短的回答是不和不。與世界級客戶合作的美妙之處在於，他們為您提供了極大的知名度，我們將其轉化為較長的訂購週期。因此，我們非常有信心，我們已經制定了這些下半年計劃，我們的主要供應商知道他們需要為我們和我們的主要客戶提供什麼。因此，這就是擁有高知名度的美妙之處，而且坦率地說，擁有我們所從事的客戶的能力，我們顯然得到了大型晶圓廠合作夥伴的大量關注。所以不，我們相信我們已經從供應的角度處理了任何潛在的供應鏈問題，我們還沒有看到你提到的定價元素。

Okay. As a follow-up to that, how far in advance do you have visibility on your pricing with your customers? Is that set in any kind of timeframe like a three or six month pricing timeframe?

好的。作為對此的跟進，您提前多長時間了解您的客戶定價？是否設置在任何類型的時間範圍內，例如三或六個月的定價時間範圍？

n general, our customers work on a per quarter basis and there is no fixed period for pricing negotiations. It tends to happen that a number of times per year. So it would be misleading to say that we have particular visibility in that. We sit down and negotiate with our customers on an as-needed basis a number of times per year. So that's the best color I can give you.

n 一般而言，我們的客戶按季度工作，定價談判沒有固定期限。每年往往會發生很多次。因此，如果說我們在這方面有特別的知名度，那將是一種誤導。我們每年都會根據需要與客戶進行多次協商。所以這是我能給你的最好的顏色。

Okay. And then one final question on the gross margin. You talk about the 5022 now representing a majority of revenue and units, I assume. Given that move from .18 to .13 micron, I would have assumed more of a positive impact on your cost basis. Am I just wrong in that assumption or is there some cost-benefit that's yet to flow through?

好的。然後是關於毛利率的最後一個問題。我假設您談論的是現在代表大部分收入和單位的 5022。鑑於從 0.18 到 0.13 微米的變化，我會假設對您的成本基礎產生更多的積極影響。我的假設是錯誤的，還是有一些成本效益尚未產生？

.13 is still not as cost-effective as some of the more mature processors, like a .18 or .35. But I think in us going early to .13, as we look in the second half of this year and into next year, there is a dip in the current where these new advanced processors really get into volume and really hit the cost efficiency. So .13, we don't think is yet the very most cost efficient process but the way the physics and financials work means that it is clearly moving that direction. So we think we've chosen the process early and it points to good cost economics for us moving forward, frankly.

.13 仍然不如一些更成熟的處理器（如 .18 或 .35）具有成本效益。但我認為我們早早進入 0.13，正如我們在今年下半年和明年展望的那樣，這些新的先進處理器真正進入量產並真正達到成本效率的電流有所下降。所以.13，我們認為這還不是最具成本效益的過程，但物理和財務的工作方式意味著它顯然正在朝著這個方向發展。因此，我們認為我們已經很早就選擇了這個流程，坦率地說，這表明我們前進的成本經濟性很好。

Okay. Great, thank you.

好的。太好了謝謝。

We'll go next to Craig Berger with Bush Morgan.

我們將和布什摩根一起去克雷格伯傑旁邊。

Thank you. Just kind of follow on the last question. You talked about the process being cost effective or not. Can you tell us where you were and the yield ramp and maybe how much goodness we can expect going forward from improved yields?

謝謝你。只需關注最後一個問題。您談到了該過程是否具有成本效益。你能告訴我們你在哪裡，產量上升，也許我們可以從提高產量中期待多少好處？

Unit information, per se, we don't break out. What I will say is one of the real benefits of working with our intermediaries in this productionless environment with LSI and the UMC is we have two world-class partners, all in the same boat with us, working on things like yield and cost improvement and quality. And so I think we are very happy with the present yields we are achieving and we're very happy to be working with companies like LSI who pay a great deal of focus on that and together, we make sure we really come out with a cost efficient products. But the yields are not a significant factor in a delta in our financial model. We've got great partners that are helping us deliver the volume and quality we need.

單位信息，就其本身而言，我們不會爆發。我要說的是，與 LSI 和 UMC 在這種無生產環境中與我們的中間商合作的真正好處之一是，我們有兩個世界級的合作夥伴，與我們同舟共濟，致力於提高產量和成本等方面的工作，以及質量。所以我認為我們對我們目前實現的產量感到非常滿意，我們很高興與像 LSI 這樣的公司合作，他們非常關注這一點，我們一起確保我們真的付出了代價高效的產品。但在我們的財務模型中，收益率並不是影響增量的重要因素。我們擁有出色的合作夥伴，幫助我們提供所需的數量和質量。

Got it. Can you -- I know you referenced the ASPs declined 9% year-over-year. Are you able to give us the sequential?

知道了。你能 - 我知道你提到 ASP 同比下降 9%。你能給我們順序嗎？

No, Craig, I can't give you the sequential. I don't break that out.

不，克雷格，我不能給你順序。我不打破這個。

Okay. And then, finally, if we go back in time, you guys used to say that the model was the first half of the year heavy on R&D as you tape out products and what not. Now we're looking for a pretty sizable increase in R&D into the third quarter. How do we think about, sort of, bucketizing the R&D between first half and second half as we go forward -- is the first half heavy a done deal or can you just help us out there?

好的。然後，最後，如果我們回到過去，你們過去常說，該模型上半年在研發上投入了大量精力，因為您將產品流片等等。現在，我們正在尋找到第三季度研發的相當可觀的增長。在我們前進的過程中，我們如何考慮，在某種程度上，將上半年和下半年之間的研發分門別類——上半年是完成的交易還是你能幫助我們嗎？

I would put a slightly different sort of tone on that. I would categorize that more as a management team focus than maybe R&D spending. Maybe when we were a little smaller that was how it worked out, but fundamentally you're right. You have to have the design wins locked and loaded here for the second half. So you tended to have a lot of management attention on R&D and product development in the first half and then execution and operations in the second. Now, as we've successfully transitioned to a public company and can afford to fund these parallel developments, we keep the gas on multiple developments and don't think there will be as much tied to quarterly seasonal basis as we will to our ability to fund and grow these new programs. Does that make sense?

我會對此提出一種稍微不同的語氣。我會將其歸類為管理團隊的重點，而不是研發支出。也許當我們更小一點的時候，結果就是這樣，但基本上你是對的。您必須在下半場將設計勝利鎖定並加載到此處。因此，您傾向於在上半年將大量管理注意力放在研發和產品開發上，然後在下半年進行執行和運營。現在，由於我們已經成功轉型為一家上市公司，並且有能力為這些平行開發提供資金，我們將精力放在多個開發上，並且認為與季度季節性基礎的聯繫不會像我們的能力那樣緊密。資助和發展這些新項目。那有意義嗎？

Yes, so I think what you're telling me is we should expect tapeouts during any or every quarter of the year, kind of on a go forward basis?

是的，所以我認為您要告訴我的是，我們應該在一年中的任何一個季度或每個季度期待流片，有點向前發展？

That's correct.

這是正確的。

Okay.

好的。

What's important is to be early enough for the next critical cycle so that's the issue. Yes, you'll see a variety of tapeouts but as we taped out in this last quarter, again, pointing to 2006, you have to get that runway really fine correctly. Otherwise you can be in serious trouble.

重要的是要足夠早地迎接下一個關鍵週期，這就是問題所在。是的，你會看到各種各樣的流片，但正如我們在上個季度的流片一樣，再次指向 2006 年，你必須正確地把跑道弄得很好。否則你可能會遇到嚴重的麻煩。

Got it. Question, and I know this has kind of been asked, but on the flash sales in Q3 or beyond, are you able to offer us any metrics, i.e., number of customers, number of design wins, anything at all quantifiable?

知道了。問題，我知道有人問過這個問題，但是在第三季度或以後的限時搶購中，您能否向我們提供任何指標，即客戶數量、設計獲勝數量，以及任何可量化的指標？

It's ahead of its kind. We will be very happy as our customers announce their products, to follow their announcements on our quarterly calls and give a little bit more color around that, but we're not going to pre-announce our customers and such like. So we're going to stay somewhat mum until our customers launch some great products in the second half.

它領先於同類產品。當我們的客戶宣布他們的產品時，我們將非常高興，在我們的季度電話會議上關注他們的公告並為此提供更多的色彩，但我們不會預先宣布我們的客戶等。因此，在我們的客戶在下半年推出一些出色的產品之前，我們將保持沉默。

Can you just comment on maybe what your customers are telling you from a high-level what they're seeing in the flash market? Is that inventory getting worked through and is that pushing back maybe the ramp of some new products targeted to age or what are you guys seeing and what are your customers telling you on the flash market?

您能否評論一下您的客戶從高層次上告訴您他們在閃存市場上看到的內容？庫存是否得到解決，是否可能會推遲一些針對年齡的新產品的增長，或者你們看到了什麼，你的客戶在閃存市場上告訴你什麼？

I can't really add much color on the inventory side. I think your comment that they would delay introduction is not what my experience tells me. The actual product introduction cycles and innovation in this market goes ahead irrespective of where people sit on inventory. They have to get new models refreshed for Christmas. The have to start shipping to the major brands around the world. So just because maybe some customers or other suppliers in the channel may have inventory, they can't afford to slow down the innovation cycle.

我不能在庫存方面添加太多顏色。我認為您關於他們會延遲介紹的評論不是我的經驗告訴我的。無論人們坐在哪裡，這個市場的實際產品引入周期和創新都會繼續進行。他們必須為聖誕節更新新模型。必須開始向世界各地的主要品牌發貨。因此，僅僅因為渠道中的一些客戶或其他供應商可能有庫存，他們就無法減緩創新周期。

Got it. Then just a last question from me. I heard Samsung has come out with a somewhat compelling media processor, dubbed the blues processor. Have you guys seen any impact from that? Do you expect Samsung to continue to be a big HDD customer going forward?

知道了。然後只是我的最後一個問題。我聽說三星推出了一款頗具吸引力的媒體處理器，被稱為藍調處理器。你們有沒有看到這有什麼影響？您是否期望三星繼續成為 HDD 的大客戶？

Samsung Semiconductor is a very able semiconductor company itself. The firm has strength, the systems strength has typically not being their strong point. Whether a customer uses their vertical integrated again, really depends on whether there's enough differentiation in that the performance so frankly it's a case by case basis. Just because there's internal versus external silicon, we have to work with our customers, provide the best solutions, and we can very successfully compete against vertical integrated customers if we have the right solutions and the right price point.

三星半導體本身就是一家非常有能力的半導體公司。公司有實力，系統實力通常不是他們的強項。客戶是否再次使用他們的垂直集成，實際上取決於是否有足夠的差異化，因此坦率地說，這是一個個案。僅僅因為存在內部與外部芯片，我們必須與客戶合作，提供最佳解決方案，如果我們擁有正確的解決方案和合適的價格點，我們可以非常成功地與垂直集成客戶競爭。

So no specifics as to whether Samsung will be a HDD customer in '06?

所以沒有關於三星是否會在 06 年成為 HDD 客戶的細節？

As we indicated earlier, we are not giving guidance into Q4. Frankly, 06 is even further out for us. So wait and see.

正如我們之前指出的，我們沒有對第四季度提供指導。坦率地說，06 對我們來說更遠。所以拭目以待。

We'll take our final question, Shaw Wu, American Technology Research.

我們將回答最後一個問題，美國技術研究部的 Shaw Wu。

Thanks, just a couple of clarifications. You talk about how the next quarter you will see a more sizeable contribution from flash. Just wanted to clarify if that was the 5022 or the 5024. That's the first question. And the second question is, should we think of the 5024 as the successor to the 5022? Thanks.

謝謝，只是幾個澄清。您談到下一季度您將如何看到閃存的更大貢獻。只是想澄清那是 5022 還是 5024。這是第一個問題。第二個問題是，我們是否應該將 5024 視為 5022 的繼任者？謝謝。

I'm going to answer the second question first. Now the 5024 is really a more integrated version of the 5022. It's no secret that the actual host CPU in the 5022 and the 5024 is actually the same die. With respect to design wins moving into the second half of this year, it's mixed between the two, between the 5022 and the 5024.

我先回答第二個問題。現在5024真的是5022集成度更高的版本。5022和5024中實際的主機CPU其實是同一個die，這已經不是什麼秘密了。至於今年下半年的設計勝利，它介於兩者之間，介於 5022 和 5024 之間。

What's the difference, in terms -- if there is a mix, should we think of one as more high-end and one more low-end? I mean, how should we think of that?

就術語而言，有什麼區別 - 如果有混合，我們應該認為一個更高端，一個更低端嗎？我的意思是，我們應該怎麼想？

It frankly depends on the customer's choice. Some customers, if they're really driving for maximum integration, very much like the 5024, more highly integrated device. Other customers have their own particular demands and differentiation and they like to use other system components around our host CPU. And so it really is the choice of our customers' design team. So we provide both and they can choose either, depending on how they like to architect their new models.

坦率地說，這取決於客戶的選擇。一些客戶，如果他們真的追求最大集成度，就像 5024 一樣，集成度更高的設備。其他客戶有自己的特殊需求和差異化，他們喜歡在我們的主機 CPU 周圍使用其他系統組件。因此，這確實是我們客戶設計團隊的選擇。所以我們兩者都提供，他們可以選擇其中任何一個，這取決於他們喜歡如何構建他們的新模型。

Okay. Sorry. So to clarify, for Q3, you expect to see a contribution from both the 5022 and the 5024 in the flash market?

好的。對不起。所以澄清一下，對於第三季度，您希望看到 5022 和 5024 在閃存市場中的貢獻？

Actually go back to the second half. I didn't give the Q3 granularity but for the second half you'll see a mix of, we believe there'll be a mix of both those design wins for those two products.

其實回到下半場。我沒有給出第三季度的詳細信息，但在下半年你會看到混合，我們相信這兩種產品都會混合使用這兩種設計。

Okay, thank you.

好的謝謝你。

Thanks a lot. Thank you, everyone. And thank you for joining us today and we plan to meet with the investors on August 22, in San Francisco at the media conference and plan to present at the Smith Barney Citigroup conference on September 6. We look forward to seeing many of you there and with that, we'd like to conclude this conference call. Thank you.

非常感謝。謝謝大家。感謝您今天加入我們，我們計劃於 8 月 22 日在舊金山的媒體會議上與投資者會面，併計劃在 9 月 6 日出席美邦花旗集團會議。我們期待與你們中的許多人見面，並至此，我們想結束這次電話會議。謝謝你。

This does conclude today's conference. Thank you for your participation. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連接。