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.

歡迎參加 PortalPlayer, Inc. 2005 年第二季財報電話會議。 今天的通話正在錄音，通話結束後一小時後即可播放。 若要收聽重播，請撥打 719-457-0820，密碼為 6446864。現在，我將致開幕詞和介紹，並請 PortalPlayer 投資者關係部門的 Kristine Mozes 發言。 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，也謝謝您今天加入我們。本次電話會議除了可透過電話重播提供外，還將透過 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，我們發布了收益新聞稿並提交給了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，同時還將討論根據 GAAP 計算的最直接可比較的財務指標，以調節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。

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.

我首先要宣讀我們的安全港聲明。今天電話會議的陳述並非歷史事實，而是《私人證券訴訟改革法案》所定義的前瞻性陳述。前瞻性陳述包括但不限於有關我們未來計劃和增長、開發工作、產品和技術的特點、優勢和介紹、我們聘用更多資源的計劃、我們在印度海得拉巴的工廠的計劃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）、市場趨勢和對大容量播放器的需求以及該市場的預期增長、對我們產品的收入及其時機）、 GAAP，包括收入、淨收入、費用、毛利率、平均銷售價格、股票薪酬費用、稅率、現金流量、加權平均流通股數和營運費用（包括但不限於未來研發支出和銷售、一般及管理費用）。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有重大差異。 請參閱今天的收益報告、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 表和截至 2005 年 3 月 31 日的季度 10-Q 表，以及我們不時向美國證券交易委員會提交的其他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的風險因素。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。

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

現在我想把電話交給加里來做開場發言。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，第二季度對於 PortalPlayer 來說又是一個出色的季度。我們成功執行了產品路線圖和商業計劃，本季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。第二季的營收符合我們的預期。 該收入幾乎比去年同期第二季成長了四倍，並且略高於第一季的強勁收入。 o 在第一季和第二季度，消費性電子產業的營收通常會連續下滑，但我們並沒有經歷這些下滑，反而繼續看到非常強勁的需求。我們的現金部位再次增加了 1,300 多萬美元，目前已增至 1.5 億多美元。我們的每股盈餘達到了指導範圍的最高點。我們對上個季度所取得的成就感到非常自豪。總而言之，我們所有的財務指標均符合或優於我們的預期。 Olav 稍後會向您提供更多詳細資訊。

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.

那麼我們第二季的主要舉措是什麼？我們將大量注意力集中在營運執行上。本季度，我們成功且快速地完成了新 PP5022 設備的生產。事實上，截至今天，我們已經出貨了超過 600 萬台該設備。我們已經完成了客戶令人興奮的新車型的設計活動，預計將於今年下半年推出。此外，我們也與供應鏈合作，為下半年的大量需求做好營運準備。 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 年及以後的成長。

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，我將詳細介紹每項舉措，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，感謝他幫助我們成功地從一家新創公司轉型為一家上市公司。 透過這次電話會議，我們宣布湯姆已辭去董事會職務，我謹代表董事會感謝湯姆在過去三年半中的精力和參與，並祝愿他在轉向新事業時取得巨大成功。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，他將向您介紹我們第二季財務狀況的詳細資訊。

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 1,200 萬美元增長了約 270%，略高於 2005 年第一季的 4,450 萬美元。正如 Gary 剛才所提到的，每年的第二季度通常是消費性電子市場最疲軟的季度，因此，我們很高興看到採用我們技術的產品的整體需求持續如此強勁。

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.

為了給您更多信息，我們確實看到除了最大客戶之外的業務存在一些季節性，並且市場份額正在向我們最大的客戶傾斜。因此，來自其他客戶的收入略有下降，占我們總收入的 8%，而來自最大客戶的收入則增加。提醒一下，第二季度，我們的所有收入都來自基於硬碟的個人媒體播放器的出貨量。 我們在第一季開始大量出貨新的 5022 系統單晶片，事實證明該產品的需求非常強勁。 5022 在第二季的收入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 萬台該設備。正如您所看到的，這款新產品在市場上確實取得了巨大的成功，而且我們在提高產量方面也做得非常完美。

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.

第二季淨收入為 630 萬美元，而去年同期淨虧損為 88 萬美元。 2005 年第二季淨收入為每股收益 0.25 美元（基於 2,510 萬股加權平均流通股），而去年同期每股虧損 0.64 美元（基於約 140 萬股基本加權平均流通股）。這兩個季度的股票數量差異如此之大，當然是因為在 04 年第二季度，我們仍然是一家私人公司。 2005 年第一季的淨收入為 780 萬美元，以 2,500 萬股加權平均股計算，每股攤薄收益為 0.31 美元。

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.

我想在這裡指出，我們對員工股票激勵計畫做了一些改變。在第二季度，我們決定向所有員工提供選擇權和限制性股票組合，從而減少發行的工具總數。因此，在第二季度，我們首次因這些限制性股票的歸屬期限較長（目前為五年）而產生了費用。我馬上會給你更多細節。

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.

在稅收方面提醒一下，出於聯邦稅收的目的，我們仍將結轉本納稅年度約 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表現和對 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利潤 (NOL) 的事實，我們今年開始計提稅負。正如我們上個季度所說，採用 25% 的有效稅率，這一稅率保持不變。

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 美元的非現金股票薪酬費用，2005 年第二季度的非 GAAP 淨收入為 680 萬美元或每股稀釋後 0.27 美元，而 2004 年第二季度的非 GAAP 淨收入約為 780,000 美元或每股稀釋後 0.5 美元。 05 年第一季非公認會計準則淨收入 820 萬美元，即每股攤薄收益 0.33 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.

現在讓我討論一下本季度損益表的一些信息，然後我將轉到資產負債表。從各方面來看，第二季再次取得了巨大的成功。我們第二季的毛利率為 43%，完全符合我們長期模型的 41% 至 44%，與 2005 年第一季的毛利率大致相同。正如我們過去所說的那樣，我們預計單一 SKU 的平均售價將同比下降 20% 至 25%，而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。在第二季度，由於我們新產品的持續強勁表現，我們的產品組合平均售價年比僅下降了 9%。第二季的研發和銷售、一般及行政費用約為 1,140 萬美元，比上一季增加了 210 萬美元，這與我們的計劃和指導完全一致。

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.

那麼就讓我來為你解釋一下。額外支出中的大部分（約 150 萬美元）分配給了我們的研發活動，研發支出為 790 萬美元。正如預期的那樣，我們加速了一些重要的研發里程碑，導致第二季的 NRE 費用增加，但更重要的是，我們也能夠填補一些員工空缺，特別是在美國和印度子公司的策略研發領域。展望未來，我們預計將繼續將研發支出控制在收入的 70% 左右，同時我們將持續投資於人才和技術，以支持極具競爭力的發展路線圖。 因此，我們預計下一季的研發費用約為 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.

第二季銷售、一般及行政費用為 350 萬美元，較上一季增加 54 萬美元。這一增長主要是由於我們遵守《薩班斯-奧克斯利法案》所導致的額外成本。我們預計 2005 年第三季銷售、一般及行政費用 (SG&A) 將增加約 40 萬美元。我們的非現金薪酬費用一如既往地包括遞延薪酬攤銷和一些可變費用，並且首次包括了我之前提到的限制性股票授予費用的攤銷費用。我們為此預留了10萬美元的費用。展望未來，我們預計 2005 財年第三季的非現金股票薪酬費用約為 52 萬美元。然而，這筆股票補償費用將再次包含基於我們期末股價的小幅變動因素，因此具體金額難以預測。

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.

現在讓我們來看看資產負債表。我們的應收帳款為 2,520 萬美元，截至 6 月 30 日的庫存餘額為 110 萬美元，全部為成品。現在這個餘額相當低。這僅代表大約三到四天的庫存，這肯定低於我們三十天的目標。對此的解釋體現在我們本季的遞延收入。本季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，這些在日曆季度末發貨的貨物不計入我們的第二季度收入，我想您現在對此非常熟悉。相反，這些貨物被推遲了。 我們資產負債表上的遞延收入狀況代表了這些貨物的毛利率，在第二季末從 400 萬美元增加到 500 多萬美元。因此，我們以非常積極的勢頭結束了本季度，現在我們正在將庫存增加到更正常的水平，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.

我們第二季的經營活動產生了季度正現金流，超過 3,000 萬美元。這考慮到了我們本季繳納的 400 萬美元稅。因此，我們的現金和短期投資在第二季末又增加了 10%，達到 1.5 億美元以上。

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.

本季末的員工總數約為 228 人。我們在第二季增加了 34 名員工，其中 80％ 以上在研發部門工作。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，而且我們約有一半的員工駐紮在印度海得拉巴。

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荷西一個更大地點的新的、更具成本效益的辦公室，這為我們提供了一個更一體化的空間來擴展。此外，我們最近在印度海得拉巴新規劃的國際機場附近購買了房地產，我們預計將於 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.

我們對開學季和假期感到興奮，並相信我們已為今年下半年的顯著增長做好了準備。我們相信第三季的營收將在 5,000 萬美元至 6,000 萬美元之間。我們認識到，這個範圍比您從我們這裡看到的要廣一些，讓我來解釋一下原因。我們預計九月將是一個非常強勁的月份。讓我提醒您，我們的保守收入確認政策要求我們在月底前三週左右（即九月初）截止 GAAP 收入。因此，9 月出貨的具體時間決定了我們將哪些收入確認為第三季的收入，哪些收入將在 9 月底遞延。

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.

預計營運費用約為 1,320 萬美元，我們預計股票薪酬費用約為 52 萬美元，基於約 2,600 萬股加權平均流通股，每股 GAAP 淨收益在 0.28 美元至 0.36 美元之間。不包括薪資費用的非公認會計準則每股攤薄淨收益預計在 0.30 美元至 0.38 美元之間。現在，我想將電話轉回給加里，聽聽他的意見。

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，第二季取得了巨大的成功。從營運角度來看，這也是一個巨大的成功。我們整個 PortalPlayer 團隊繼續完美地執行我們的業務計劃和產品路線圖，以支援我們世界一流的客戶。在過去的一個季度中，我們專注於無縫且成功地提高新 5022 設備的產量，並從 5022 設備過渡到這款新設備。正如我之前所說，迄今為止，我們已交付超過 600 萬台 5022 設備，達到了一個重要的里程碑。在我們世界級合作夥伴 UMC 和 Edified Logic 的實力和支援下，.13 微製程的產量提升快速且無縫。事實上，我們只花了大約三個月的時間就實現了全面量產。我們相信這充分證明了我們的營運模式的速度和靈活性。轉向 .13 微處理器是讓我們能夠降低晶片功耗的另一個因素，從而顯著延長電池壽命。 透過 5022，我們還成功開發了統一儲存平台 (USP)，可與硬碟和快閃儲存媒體無縫且互換地運作。

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.

這樣，我們為客戶提供了設計和生產新產品模型的更多彈性。透過我們的 5022 設備，客戶可以選擇他們想要在其設計中使用的其他系統組件，或者對於那些想要採用完全整合方法的客戶，他們可以選擇使用我們的 5024 設備。順應同樣的趨勢，我們預計我們當前和未來支援視頻功能的平台也將為我們的客戶提供靈活性，讓他們選擇我們原生支援的視頻，或者選擇使用例如我們的 CSI 接口的更高性能的外部視頻編碼流程。

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，我們也將營運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，以確保獲得所需的額外產能和測試人員，以滿足預期的大幅成長的需求。我們相信，進入下半年，我們將有能力應對預測的大幅需求成長。

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.

我要提到的最後一個營運里程碑是，在第二季度，我們將採用下一代技術，為 2006 年產品週期做準備。在競爭非常激烈、發展速度很快的消費電子產業，保持技術和創新的前沿地位並按時完成結算至關重要。我為整個 PortalPlayer 團隊在這方面的出色表現感到非常自豪。我們不僅實現了所有生產目標，而且在某些情況下甚至超越了這些目標。同時，我們繼續組建功率模式晶片設計團隊，以拓寬我們的產品範圍並加速我們的發展路線圖。

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.

現在讓我們來看看成功的設計。到目前為止，計劃於 2005 年推出的個人媒體播放器的絕大多數設計訂單都已敲定。我不會逐一公佈客戶的具體設計訂單數量，但我可以肯定地說，我們對這些訂單感到非常滿意。尤其是，我們對基於快閃記憶體的設計所取得的成功感到非常高興。根據設計的勝利，我們預計從第三季開始我們的很大一部分收入將來自快閃記憶體市場。在我們上一季的收益電話會議上，我們告訴大家，到 2005 年底，大容量閃存播放器市場可能會超過閃存播放器整體出貨量的 20%。事實上，由於非快閃記憶體價格的下降，我們認為市場對大容量閃存播放器的需求已經加速增長，並且可能在 2005 年底之前的某個時候超過閃存播放器總體出貨量的 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.

現在讓我們來看看推動在高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，因為消費者只需支付每月固定費用即可在個人媒體播放器上即時存取數千首歌曲，而無需單獨購買每首歌曲。雅虎最近推出了一種非常低成本的分銷模式，可能會對消費者產生吸引力，而微軟技術同時允許訂閱模式和下載模式，這可能有助於激發市場興趣。

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。隨著蘋果推出將播客功能整合到 iTunes 的 iTunes 4.9，這項舉措將先前的利基功能推向了主流。推出兩天內，客戶訂閱的播客就超過 100 萬個。 隨著人們在個人媒體播放器上儲存的內容不再僅限於音樂，他們將需要更高容量的產品來儲存和管理這些內容。

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串流廣播服務，例如衛星廣播。我們相信，這些新型服務將會呈現良好的成長勢頭，它們可以在消費者的個人媒體播放器上提供時移廣播內容，以便他們隨時隨地播放。

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訊。當今最好的例子就是 TiVo DVR。我們現在看到的個人媒體播放器具有 60 甚至 80 GB 的儲存空間，這與今天的個人 DVR 大致相同。有了這種級別的存儲，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。儘管目前這個市場規模較小，但我們相信這個領域仍將持續創新。

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，以及對能夠管理內容、編目數據並提供強大而敏捷的用戶體驗的強大解決方案的需求。這正是我們的優勢。

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.

第二季度，我們也投入了大量的時間和精力來推進產品開發和創新。我們相信不久的將來設備將需要持續連接。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。正如大多數技術一樣，需要經過幾次迭代才能達到市場的最佳水平。今年推出的手機電池壽命有限，不能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的限制。我們認為下一波浪潮必須克服這些限制，並且應該由特定的生活方式類型的設備驅動並針對它們。我們相信這些統一的設備代表著未來令人興奮的市場機遇，我們今天正在對此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.

總而言之，我們在現有客戶群中取得了巨大的成功。我們的 5022 和 5024 設備顯著提高了技術產品的標準。我們對現有客戶和新客戶下半年的發展勢頭感到興奮，並將繼續投資於未來技術。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的客戶、產品或路線圖。接線員，我們已經準備好回答問題了。

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

[ 操作員指示 ] 我們先聯絡瑞士信貸第一波士頓的蘭迪艾布拉姆斯。

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?

大家下午好。第一個問題。 想看看您是否可以幫助我們進一步了解指導範圍。 新產品的影響有多少？快閃記憶體市場與傳統硬碟產品相比有多少差距？

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.

你好，蘭迪。我想我無法提供你數據。因此，我們不會透露我們如何得出收入預期。我們給出的範圍是 5000 萬至 6000 萬美元，比上個季度的預測稍微寬一些，因為我們看到 9 月份的航運非常活躍。我們的收入確認政策在九月初就停止了收入確認。 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對確認收入和遞延收入產生影響，但我現在不想就閃存或硬碟進行細分。

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?

好的，也許更多從市場層面來考慮。您剛才談到，到年底高階快閃記憶體的運行率將超過 20%。您能否談談您認為整個快閃記憶體市場的運作率是什麼樣的，以及您對硬碟市場的期望是什麼樣的？

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.

你好，蘭迪，我是蓋瑞。總體而言，我們仍然認為這兩個部分都非常強勁。 回顧 Gardner (?) 對今年的一些預測，您可能已經知道，他們預測今年硬碟的銷量為 2800 萬台，快閃記憶體的銷量為 4600 萬台，其中硬碟的銷量將超過 50%。他們預測快閃記憶體的成長率僅為 35% 左右。 我們認為快閃記憶體市場本身正在繼續加速發展，因此我們認為該市場仍將經歷強勁成長。我認為，最重要的是，我們看到需求價格的下降使得這個高容量部分真正變得可行，我們很高興看到高容量硬碟、中階硬碟和高階快閃記憶體的成長。

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，那麼對於平均售價，您是否可以透過一種近似的方式來了解新的快閃記憶體產品，它相對於硬碟產品的表現如何？那麼，你們與 Ostro 和 Microsystems 之間是如何劃分的呢？您會拆分該 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，這兩個部分的平均售價是相似的。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 微米製程。這是一個非常成熟的過程，而且肯定不是一個昂貴的過程。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。 只是為了澄清一下，快閃記憶體和硬碟的 ASP 是否相同，而 Oscar 的價格是否會高於它們的價格？

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.

是的，這可能是一種看待它的方式。蘭迪，只是想澄清一下。 請記住，這兩種產品都包含在一個系統和套件中，因此系統和套件的最終 ASP 就是我們所指的 ASP 比較。我不希望你在此基礎上再增加奧地利微電子的成本。作為客戶的 ASP 供應商，我們整合了他們的染料，為客戶提供一站式服務，並為他們提供一個整合的 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。看起來毛利率維持在較高水準 43% 左右。我們是否應該預期這種情況會繼續在這個範圍內發生？您認為未來一、兩個季度毛利率方面會出現哪些重大波動因素？

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%.

我認為我們對該模型非常滿意。 我認為，處於我們所提到的 41% 到 44% 車型的高端是件好事。當然，這裡的秘訣就是創新。如果您不斷創新並添加新功能，您可以提高對客戶的銷售價格。坦白說，我們關注的是整合、生成，當然還有保持我們的營運團隊正常運作。因此，在目前 41% 至 44% 的比例下，我們並沒有看到模型發生根本性的變化。

Okay, thanks a lot guys.

好的，非常感謝大家。

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

接下來我們將去拜訪史密斯巴尼的 Glen Yeung。

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

大家好，我是 Glen 的 Jim。 關於毛利率，我們快速跟進。 先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，每季都會有一點這樣的情況，吉姆。它再次低於百分之一，與上一季相當。這些主要是我們運送來替換部分客戶早期產品的產品。

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，最後來看看季節性。 您提到了九月的實力。我們對第四季的線性前景有何預測？

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.

目前我們不會給出那麼遠的指導。我們的評論與第三季直接相關。我們已經明確表示，我們認為下半年對我們來說顯然會是非常強勁的半年，但抱歉，目前我們還沒有公佈具體的第四季指引。

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

好的，本季第三季將在 9 月末期結束，對嗎？

September is very active shipping month for us. Yes.

九月對我們來說是航運非常活躍的月份。 是的。

We will go next to Shawn Slayton, SG Cowen.

接下來我們來談談 Shawn Slayton 和 SG Cowen。

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?

午安.執行得很好，指導得很好。蓋瑞，您能否幫我們了解一下您認為非 iPod 業務的情況？從百分比來看，為什麼你們的業務會萎縮，至少在短期內是如此？它是硬體、使用者介面、外形尺寸的功能嗎？還是與內容方面、線上內容方面有關？

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，我認為主要原因不是這兩者中的任何一個。 我認為，儘管這兩個因素都很重要，但主要的因素坦白說只是消費週期的季節性。請記住，第二季度傳統上是該部門最疲軟的季度，我認為根據您剛才指出的因素，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?

當您的最大客戶和遠離最大客戶的客戶時，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.

嗯，我認為這就是您提到的觀點，正如您所說，我們在市場上擁有的該產品的大型客戶的加速和易用性正在繼續在市場上獲得非常強烈的反響。正如您所說，易用性和與服務的整合性我認為非常關鍵。因此，我認為，我們看到了市場對現有產品品質的持續反應，以及與這些領先產品相伴的優秀品牌的持續反應。

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，你們顯然正在增加員工人數。您能否幫助我們理解 - 幫助我們了解您在哪裡添加頭以及可能在 SoC 資訊方面。 你們——你們是否有任何策略來將工廠合作夥伴目前向你們提供的一些服務轉交給內部人員？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.

讓我來總體談談研發人員數量問題。首先，我們持續全面招募聰明人才，無論是在矽工程、架構、軟體或韌體領域，我們都在美國和印度找到了優秀的人才。因此，我不會特別指出我們正在增加人員的某個特定領域，現在我們的目標是擁有並行的開發團隊。 我們有很多可以實施的想法。 一些來自主要客戶的問題實際上是建立並行開發團隊。就在一年多前，我們可能只有一個關鍵的工程團隊在這裡工作。關於將更多的製造能力轉移到內部，正如你所知，我們會逐代關注每一代晶片，並且我們正在慢慢加強一些專業知識，但我們並沒有特別加快我們的努力。我們正在根據具體情況進行審查。

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。這是我的最後一個問題，現在我要讓出發言權。所以本季你們預計 5024 會直接帶來營收。本季度，閃存播放器晶片的銷售是否會促進客戶多元化？這就是我所擁有的一切。

Repeat the question on diversity.

重複有關多樣性的問題。

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

本季度，你們的快閃記憶體播放器 IC 銷售是否會促進客戶多元化？

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.

我們不會透露我們的產品銷往哪裡的具體細節。如您所知，這是我們的政策。當我們看到我們的閃存播放器解決方案的優勢時，當我們瞄準高效能插槽時，我想說的是，我們對各個方面都感興趣，既包括您習慣的主要客戶，也包括非我們傳統客戶群的客戶。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，如果我理解正確的話，加里，您會從我們本季度從多個客戶那裡獲得所謂的有意義的閃存播放器 IC 收入嗎？

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

我們沒有公佈客戶數量，只是因為我們不想不斷地報告——

Not a number. Just more than one.

不是一個數字。 不只一個。

Yes.

是的。

Okay, thanks guys.

好的，謝謝大家。

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

接下來我們將前往 Quinn Bolton、Needham and Company。

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.

只是對那個閃光燈進行澄清。 我想您提到過，您會在第三季看到 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%。 您能給出一個什麼樣的數字嗎？然後我還有一些後續問題。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.

您知道，您在一個季度前問過同樣的問題，我認為我所說的「顯著性」意味著在 10 到 90 之間。所以我不想重複。我認為“顯著”是一個好數字，而且肯定超過 10。讓我在這個季度更具體一點。 抱歉，我無法說得更具體。

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 個就可以了。然後還有一篇是給蓋瑞的。 您談到了剛推出的下一代設備。我知道你們還沒有正式推出該平台，但你們過去曾談到能夠透過現有的解決方案支援視訊協處理器。我有點好奇，下一代晶片是否會消除對視訊協處理器的需求？您能否談談您計劃在 2006 年發布的平台是否可以支援 MPEG4、H.T64 視訊編解碼器？

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.

事後，基礎平台與未來平台的競爭相伴而生。因此，在今天的平台上，我們原生支援 5022 上的影片。所以我們不應該假設我們必須總是使用視訊協處理器。有時，我們的客戶、市場都會將我們的晶片與不同的網路解決方案、不同的視訊解決方案結合起來，因此我們對當今的視訊和 5022 世代有很多支援。 對於下一代產品，出於競爭原因，我並不特別想對此表示敬意，但我認為可以公平地說，我們在推出新功能方面不斷突破極限，我們相信這些功能將為市場帶來創新，而且肯定會繼續沿著同樣的趨勢發展。

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?

聽起來你已經想出了 5024 的方案，在系統和封裝設備中加入類比支援晶片。您能否談談，您是否計劃對明年的平台做同樣的事情，為客戶提供這種靈活性？

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.

再說一次，我不想預先宣布我們的產品。總的來說，您要考慮的兩個軸點實際上是成本、整合度、功率和性能。所以我認為我們正在不斷努力將這四個要素結合起來，所以我們打算迅速採取行動。我認為，今年這個時候的流片很好地表明我們為 2006 年產品推出週期把握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，才能真正乾淨地滿足大客戶的產品生產週期，所以第二季的流片對我們來說非常關鍵。

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 現在是硬碟收入的大部分。您能否透露一下預計 5020 何時會退出收入來源？

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

我認為它將在今年年底前逐步退出收入來源。

Okay, thank you.

好的，謝謝。

We go next to Jason Pflaum with Thomas Weisel Partners.

接下來我們來談談 Thomas Weisel Partners 的 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，再次回顧您對快閃記憶體市場的指導和評論，或者快閃記憶體部分是您收入的重要組成部分。如果它不超過 10% 左右，這似乎意味著您的硬碟業務只會小幅成長。這是否更多的是出於保守主義，還是我們看到了其他動態在運作？

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.

你知道，傑森，指導值 50 到 60 肯定是一個很寬的範圍。我不認為您現在可以從中讀出任何形式的保守主義。我們現在正在看[聽不清楚]。此時已是九月過後。如果不詳細了解快閃記憶體與硬碟的比較情況，很難真正回答這個問題，所以我無法發表進一步的評論。

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末的情況。它似乎有點後端負載，但在退出六月季度時，你看到了一些很好的力量。這種強勁勢頭會持續到七月嗎？

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.

本季末的幾天非常忙碌。七月並不是所有月份中最繁忙的月份。所以我可以這麼說。我想，七月正如預期的那樣。 8月的出貨量將比7月更加強勁，而9月份的出貨量也將大幅增加。

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評論您的庫存水平，它們的水平略低於正常水平。您是否對自己在整個季度中滿足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，您的部分物流合作夥伴現在是否持有大量成品？

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，我們可以多靈活地應對上行趨勢。我們在本季末所做的事情實際上證明了我們的靈活性。我們看到了一些好處，並以非常靈活的方式回應了。我們正在將庫存水平恢復到正常水平，更正常的水平，發現所有目標型號都需要 30 天。 相對而言，這絕對不是過高的出價。我同意這一點。總而言之，這是時間的快照。我們以靈活性來應對一些好處，並且我非常有信心，如果未來出現一些額外的好處，我們可以繼續以相同的靈活性來應對。

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.

傑森，我們在 5022 中擁有的 [聽不清楚] 對我們有好處。我們已經達到了我們要達到的數量 - 以更長的周期向我們的供應合作夥伴下達必要的訂單。 一旦您擁有經過驗證的零件，並且其出貨量與 5022 一樣多，您實際上就可以開始以更可預測的方式處理您的供應鏈。因此，當我展望下半年時，我認為我們已經計劃得非常好，以確保我們擁有必要的靈活性，能夠執行下半年非常強大的計劃。

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，關於手機機會。 您預計最早什麼時候有機會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.

再次強調，我們目前還沒有從外部確定這一點。我們的指針指向的是 2006 年。

Okay, fair enough. Thanks guys.

好吧，夠公平。謝謝大家。

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

接下來我們來談談哈德遜廣場研究公司的丹尼爾‧恩斯特 (Daniel Ernst)。

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。 感謝您回答這個問題。實際上是三個，如果可以的話。第一，您能否評論一下您的收入、確認的收入與終端市場產品銷售組的關係如何？其次，關於你們出貨的 600 萬台 5022，你能否說出其中有多少比例是在第二季度實際確認的？最後，您能否評論一下 3 月季度的混合 ASP 年比下降 8%，低於最初的預期。 能談談第二季的趨勢嗎？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.

好的，丹，我一定會選第一個。 透過自我小組來追蹤我們的收入。我認為我沒有足夠的了解來真正確切地知道自我群體（？）是什麼。這些數字來自我們最大的客戶。 這裡有針對國內市場的 MPD 數據，但有許多氣泡水？在非美國市場。 所以，你知道，我們有一個延期政策。最重要的是，我們的客戶的供應鏈中存在著介於 ODM 之間的中間商。因此，中間存在著許多緩衝區，這使得追蹤變得更加困難。 話雖如此，我們確實在跟踪它，而且從我們目前看到的情況來看，基於我剛才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，很抱歉，您能重複一下——第二個問題是什麼？

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.

第二個問題是關於確認 5022 批貨物的出貨情況。您說目前為止已經出貨 600 萬批。其中第二季確認的百分比是多少？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.

所以我們實際上明確地說過，從今天起，我們不必將其分成四個部分。這就是我們想要告訴您的訊息，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——我正從一個問題轉到另一個問題。抱歉，請再說一次第三個。

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

本季 ASP 的趨勢。多謝。

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.

很抱歉。因此，就 ASP 的趨勢而言，當然，與去年同期相比，它又下降了 9%。因此與去年第二季相比，我們的投資組合平均售價僅下降了 9%。有點像 9，但我們指導的 10% 到 15% 稍微低一些。我們的成本下降了約 11%，因此如果與去年同期相比，我們的利潤率略有提高。我想我能為你解釋的就這麼多了。

Great, that helps a lot. Thank you.

太好了，這很有幫助。謝謝。

Thank you.

謝謝。

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

接下來我們來談談考夫曼兄弟的傑森‧帕拉沙克 (Jason Paraschac)。

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。 這裡有幾個簡單的問題。首先是製造方面。關於工廠利用率達到高峰的討論越來越多，今天早上有一篇文章提到聯華電子的利用率達到了一些閾值，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出現短缺？這對您的計劃是否明顯？第二部分，您是否發現這會影響合作夥伴的定價？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，不」。與世界級客戶合作的美妙之處在於，他們能為您提供極佳的可視性，而我們則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。這就是擁有高知名度的魅力所在，坦白說，憑藉我們擁有的優秀客戶，我們顯然得到了大型晶圓廠合作夥伴的極大關注。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，而且我們還沒有看到您所提到的定價要素。

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。作為後續問題，您可以提前多久向客戶了解您的定價？這是在任何時間範圍內設定的嗎，例如三個月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.

一般來說，我們的客戶按季度進行工作，並且沒有固定的定價談判期限。 這種情況每年都會發生多次。因此，說我們對此有特別的了解是誤導性的。我們每年都會根據需要與客戶坐下來進行多次談判。這就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。最後一個問題是關於毛利率的。 我認為您說的 5022 現在代表了大部分收入和單位。考慮到從 0.18 微米到 0.13 微米的轉變，我認為這會對您的成本基礎產生更積極的影響。我的假設是否錯誤，或者是否存在尚未實現的成本效益？

.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 仍然不如一些較成熟的處理器（如 .18 或 .35）具有成本效益。但我認為，當我們展望今年下半年和明年時，我們早期就進入了.13階段，目前這些新的先進處理器真正投入量產並真正達到成本效益的階段將出現下滑。因此，我們認為 .13 還不是最具成本效益的流程，但實體和財務運作的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，坦白說，它為我們未來的發展帶來了良好的成本經濟效益。

Okay. Great, thank you.

好的。太好了，謝謝。

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

接下來我們將與布希·摩根一起採訪克雷格·伯傑。

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。只是繼續回答最後一個問題。您談到了這個過程是否具有成本效益。您能否告訴我們您所在的位置以及產量提升情況，以及我們可以從提高的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.

單位資訊本身我們不會透露。我想說的是，在與 LSI 和 UMC 這樣的中間商進行無生產環境中合作的真正好處之一是，我們擁有兩個世界級的合作夥伴，他們都與我們處境相同，共同致力於產量和成本改進以及質量等方面的工作。因此，我認為我們對目前實現的產量感到非常滿意，我們很高興能與 LSI 等非常重視這一點的公司合作，共同確保推出真正具有成本效益的產品。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。我們擁有優秀的合作夥伴，他們幫助我們提供所需的數量和品質。

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。你能嗎——我知道你提到平均售價年減了 9%。您能給我們提供序列嗎？

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

不，克雷格，我無法給你順序。我不會透露這一點。

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。 最後，如果我們回顧過去，你們曾經說過，上半年的模式是專注於研發，因為你們要推出產品等等。 現在我們預計第三季研發支出將大幅增加。我們如何考慮將研發工作分為上半年和下半年？上半年的工作是否已經完成，還是您能否幫助我們完成？

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?

我會對此發表稍微不同的看法。我認為這更多是管理團隊的關注點，而不是研發支出。也許當我們規模較小的時候，情況就是這樣的，但從根本上來說你是對的。 您必須在下半場鎖定並贏得設計勝利。 因此，管理階層往往在上半年將大量注意力放在研發和產品開發上，下半年則將注意力放在執行和營運上。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的開發項目提供資金，我們將繼續為多個開發項目提供資金，並且我們認為，這些資金將不會像我們為這些新項目提供資金和發展這些新項目的能力那樣，與季度季節性掛鉤。這樣有道理嗎？

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，所以我認為您告訴我的是，我們應該預期在一年中的任何一個季度或每個季度都會有流片，這是一種向前發展的基礎嗎？

That's correct.

沒錯。

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.

重要的是要儘早進入下一個關鍵週期，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流片一樣，再次指向 2006 年，你必須正確地獲得那條跑道。否則，你可能會遇到大麻煩。

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。問題是，我知道這個問題已經被問過了，但是對於第三季或以後的閃購，您能否為我們提供任何指標，例如客戶數量、設計獲勝數量，或任何可量化的數據？

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。當我們的客戶發布他們的產品時，我們會非常高興，我們會在季度電話會議上關注他們的公告，並對此提供更多的信息，但我們不會提前宣布我們的客戶等。因此，我們將保持沉默，直到我們的客戶在下半年推出一些出色的產品。

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?

您能否從高層次評論一下您的客戶告訴您的關於快閃記憶體市場的情況？庫存是否已處理？這是否會推遲一些針對特定年齡層的新產品的推出？或者你們看到了什麼？你們的客戶在快閃記憶體市場告訴了你們什麼？

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.

我真的無法在庫存方面添加太多顏色。我認為您所說的他們會推遲推出的評論與我的經驗並不相符。無論人們的庫存狀況如何，這個市場的實際產品推出週期和創新都會持續進行。他們必須在聖誕節前更新新模型。他們必須開始向世界各地的主要品牌出貨。因此，僅僅因為通路中的一些客戶或其他供應商可能有庫存，他們就無法放慢創新週期。

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。那我只想問最後一個問題。我聽說三星推出了一款相當引人注目的媒體處理器，被稱為藍調處理器。你們看到它的影響了嗎？您是否預計三星未來將繼續成為 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.

三星半導體本身是一家非常有能力的半導體公司。公司有實力，但係統實力通常不是他們的強項。客戶是否再次使用其垂直整合，實際上取決於效能上是否有足夠的差異化，所以坦白說，這是一個具體情況具體分析的問題。正因為有內部矽片和外部矽片，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正確的價格點，我們就可以非常成功地與垂直整合的客戶競爭。

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

那麼，沒有具體資訊表明三星是否會在 2006 年成為 HDD 客戶？

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，我們不會對第四季度給予指導。 坦白說，06 對我們來說還更遙遠。 所以拭目以待吧。

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

我們將回答最後一個問題，美國技術研究公司的肖吳 (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，我只想澄清幾點。您談到下個季度您將看到快閃記憶體帶來更可觀的貢獻。只是想澄清一下那是 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 實際上是 5022 的整合度更高的版本。 5022 和 5024 中的實際主機 CPU 實際上是同一個晶片，這已經不是什麼秘密了。就今年下半年的設計成果而言，5022 和 5024 兩者之間表現不一。

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?

從術語上講，它們之間有什麼區別呢？如果存在混合，我們是否應該將一個視為更高端，而另一個視為更低端？ 我的意思是，我們該如何看待這個問題？

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.

坦白說，這取決於客戶的選擇。如果一些客戶真正追求最大程度的集成，他們就會非常喜歡 5024 這種集成度更高的設備。 其他客戶有自己的特殊需求和差異，他們喜歡在我們的主機 CPU 周圍使用其他系統元件。所以這確實是我們客戶設計團隊的選擇。 因此，我們提供兩種服務，客戶可以選擇其中一種，這取決於他們如何建立新模型。

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。因此，澄清一下，對於第三季度，您預計 5022 和 5024 都會對快閃記憶體市場做出貢獻嗎？

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.

實際上回到下半場。我沒有給出第三季的具體細節，但對於下半年，你會看到兩種設計的成功，我們相信這兩種產品的設計都會成功。

Okay, thank you.

好的，謝謝。

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.

多謝。謝謝大家。感謝您今天的加入，我們計劃於 8 月 22 日在舊金山的媒體會議上與投資者見面，併計劃於 9 月 6 日在 Smith Barney Citigroup 會議上進行演講。我們期待在那裡見到你們，並以此結束本次電話會議。謝謝。

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。您現在可以斷開連線。