輝達 (NVDA) 2005 Q3 法說會逐字稿

Welcome to the PortalPlayer, Inc. third quarter 2005 earnings conference call. Today's call is being recorded and will be available for playback beginning two hours after the completion of the call. To access the replay, please dial 719-457-0820 with the pass code 8519249.

歡迎參加 PortalPlayer, Inc. 2005 年第三季財報電話會議。 今天的通話正在錄音，通話結束後兩小時即可播放。 若要存取重播，請撥打 719-457-0820 並輸入密碼 8519249。

At this time for opening remarks and introductions, I would like to turn the call over to Ms. Kristine Mozes, Investor Relations for PortalPlayer. Please go ahead.

現在，在開場白和介紹的時候，我想將電話轉給 PortalPlayer 投資者關係部的 Kristine Mozes 女士。 請繼續。

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.

感謝您今天加入我們。 本次電話會議除了可透過電話重播外，還將透過 PortalPlayer 網站 www.portalplayer.com 的投資人關係頁面進行現場直播。

Earlier today, we issued our earnings press release and filed it with the SEC. The press release is also available on PortalPlayer's website.

今天早些時候，我們發布了收益新聞稿並將其提交給美國證券交易委員會。 新聞稿也可在 PortalPlayer 的網站上查閱。

Before we begin, we note that we will discuss certain non-GAAP financial measures during today's call, which are on the Corporate Governance section of our website, together with the most directly comparable financial measures calculated in accordance with GAAP and reconciliations of the differences between these measures.

在開始之前，我們注意到，我們將在今天的電話會議上討論某些非 GAAP 財務指標，這些指標位於我們網站的公司治理部分，以及根據 GAAP 計算的最直接可比的財務指標以及這些指標之間差異的對帳。

This non-GAAP information is provided to enhance the user's overall understanding of our historical financial performance. Specifically, we believe non-GAAP results provide useful information to both management and investors, by excluding the stock-based compensation expenses.

提供此非 GAAP 資訊是為了增強用戶對我們歷史財務表現的整體了解。 具體來說，我們認為非公認會計準則結果透過排除股票薪酬費用為管理階層和投資者提供了有用的信息。

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.

我首先將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。

These forward-looking statements include, but are not limited to, statements as to our future plans and growth; our roadmap for future products and broadening of our product offering; our development efforts, features, benefits and introductions of products and technology; diversification of our end-markets; our plans to hire additional resources; our and our customers' market position, market trends, including drivers for high content and high capacity; the acceleration of those drivers and expected capacity sweet spots; market demands, including seasonal trends, expected customer product introductions and their affect on demand; demand for our products; our intention regarding breaking-out revenue, benefits of net operating loss carry-forwards 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 expense.

這些前瞻性陳述包括但不限於有關我們未來計劃和成長的陳述；我們未來產品的路線圖和產品供應的擴大；我們的開發努力、產品和技術的特點、優勢和介紹；我們的終端市場的多樣化；我們僱用額外資源的計劃；我們和我們客戶的市場地位、市場趨勢，包括高內容和高容量的驅動因素；這些驅動因素的加速度和預期的容量最佳點；市場需求，包括季節性趨勢、預期的客戶產品介紹及其對需求的影響；對我們產品的需求；我們對分拆收入、淨營業虧損結轉的好處和未來財務結果的意圖； GAAP 和非 GAAP，包括收入、淨收入、費用、毛利率、ASP、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（但現在僅限於）未來研發支出和銷售、一般及管理費用。

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 June 30th, 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.

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 6 月 30 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，以獲取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信息。

These forward-looking statements speak only as of the date hereof and 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.

這些前瞻性聲明僅代表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. Before we begin, I want to note that today we filed an S1 registration statement. And as you know, we cannot comment on the filing, but refer you to the S1 and the related press release for more information.

謝謝大家，歡迎大家。 在我們開始之前，我想指出今天我們提交了一份 S1 註冊聲明。 如您所知，我們無法對該文件發表評論，但請您參閱 S1 和相關新聞稿以獲取更多資訊。

As you can see from our press release, Q3 was yet again another outstanding quarter for PortalPlayer. We are very excited that the first feature-rich Flash products using our technology, were introduced in the third quarter. Right out of the gate we entered the Flash market with two designs that are regarded as truly revolutionary media players.

正如您從我們的新聞稿中看到的，第三季度對於 PortalPlayer 來說又是一個出色的季度。 我們非常高興，第一款採用我們技術的功能豐富的 Flash 產品已於第三季推出。 我們一開始就憑藉著兩款被視為真正革命性的媒體播放器的設計進入了 Flash 市場。

One is the widely acclaimed iPod Nano and the other is the Sirius S50. We believe these product introductions are fueling demand as companies begin to unveil their products for the seasonally strong holiday months. As a result, we achieved very strong financial results for the quarter, including record revenue, up 30% sequentially, and record net income before taxes, at $13.7 million.

一款是廣受好評的iPod Nano，另一款是Sirius S50。 我們相信，隨著各公司開始在旺季假期推出新產品，這些產品的推出正在刺激需求。 因此，我們本季取得了非常強勁的財務業績，包括創紀錄的收入（環比增長 30%）和創紀錄的稅前淨收入（1,370 萬美元）。

We are very proud of these results. In summary, our financial metrics were in line or better than our guidance.

我們對這些成果感到非常自豪。 總而言之，我們的財務指標符合或優於我們的預期。

So what were our major initiatives in Q3? We focused much of our attention on helping our customers bring their revolutionary Flash-based products to market, worked with additional customers to get their products ready to launch this quarter, continued to focus on operational efficiencies and accelerated our product roadmap for products we plan to introduce next year and beyond. So again, excellent execution.

那麼我們在第三季的主要舉措是什麼？ 我們將大部分注意力集中在幫助客戶將其革命性的基於 Flash 的產品推向市場，與其他客戶合作，讓他們的產品準備好在本季度推出，繼續關注營運效率，並加速我們計劃在明年及以後推出的產品的產品路線圖。 再次強調，執行非常出色。

In a few minutes I will go into more detail about each of these initiatives, but first, I will turn the call over to Olav, who will take you through the details of our third quarter financials.

幾分鐘後，我將詳細介紹每項舉措，但首先，我將把電話轉給 Olav，他將向您介紹我們第三季財務狀況的詳細資訊。

Thank you, Gary, and welcome everyone. This third quarter of '05 was again a quarter of very significant year-over-year growth. We are very pleased to report that net revenue for this quarter was about $58 million, more than we've ever sold in any given quarter in our Company's history. An approximate 126% increase from the $25.6 million in the same period a year ago, and up 30% from the revenue of $44.6 million we recorded in the second quarter of '05.

謝謝你，加里，歡迎大家。 2005 年第三季再次實現了顯著的同比增長。 我們非常高興地報告，本季的淨收入約為 5800 萬美元，超過了公司歷史上任何一個季度的銷售額。 與去年同期的 2,560 萬美元相比成長了約 126%，與 2005 年第二季的 4,460 萬美元相比成長了 30%。

We again saw market shift in favor of our largest customer, particularly as a consequence of the introduction of a new Flash-based product in third quarter of this year. However, having said that, in Q3, shipments to our other customers were at a steady level of $3.5 million, about the same level as in the previous quarter.

我們再次看到市場轉向有利於我們最大的客戶，特別是由於今年第三季推出了基於 Flash 的新產品。 不過，話雖如此，在第三季度，我們對其他客戶的出貨量保持穩定在 350 萬美元的水平，與上一季大致相同。

As expected, the third quarter was the first in which we recorded revenue from Flash-based products. Because we're moving to a universal platform approach for our products such as the 5022 family can be used for either hard drive or Flash-based products, we do not intend to break out the revenue by memory type, due to competitive reasons.

正如預期的那樣，第三季是我們首次從基於 Flash 的產品中獲得收入。 由於我們正在為產品轉向通用平台方法，例如 5022 系列可用於硬碟或基於快閃記憶體的產品，因此出於競爭原因，我們不打算按記憶體類型細分收入。

As we also mentioned last quarter, the 5022 family now accounts for a majority of our total revenue and as it has been shipping in volume for a few quarters, we have now started to see the benefits of increased operational efficiencies. This supported a healthy increase in our gross margins, to 45.5% in the third quarter. And in summary, the 5022 family has really been a great success within the marketplace.

正如我們上個季度提到的那樣，5022 系列現在占我們總收入的大部分，由於它已經連續幾個季度大量出貨，我們現在開始看到營運效率提高的好處。 這支持了我們的毛利率健康成長，第三季達到 45.5%。 總而言之，5022 系列在市場上確實取得了巨大的成功。

Net income for the third quarter was $10.3 million, compared with a net income of $3.2 million in the same period a year ago. And this third quarter 2005 net income resulted in the income of $0.40 per diluted share, based on 25.5 million weighted average shares outstanding, compared with an income of $0.18 per diluted share, based on approximately 17.4 million basic weighted average shares outstanding in the same quarter a year ago.

第三季淨收入為 1,030 萬美元，而去年同期淨收入為 320 萬美元。 2005 年第三季淨收入為每股攤薄收益 0.40 美元（基於 2550 萬股加權平均流通股），而去年同期淨收入為每股攤薄收益 0.18 美元（基於約 1740 萬股基本加權平均流通股）。

The difference in the share count between these two quarters is, of course, due to the fact that in the third quarter of '04 we were still a Private Company.

當然，這兩個季度的股票數量的差異是由於 2004 年第三季度我們仍然是一家私人公司。

Net income in the second quarter of '05 was $6.3 million, or $0.25 per diluted share, based on 25.1 million weighted average shares.

根據 2,510 萬股加權平均股份計算，2005 年第二季淨收入為 630 萬美元，或每股攤薄收益 0.25 美元。

We continue to apply an effective tax rate of 25% to our results and for tax purposes this year, we continue to benefit from our net operating losses that we carry forward from previous years. It is noteworthy that before applying this tax rate, our pretax operating net income was a record $13.7 million this quarter.

我們繼續對我們的業績採用 25% 的有效稅率，出於今年的稅收目的，我們將繼續受益於前幾年結轉的淨經營虧損。 值得注意的是，在應用此稅率之前，我們本季的稅前營業淨收入達到了創紀錄的 1,370 萬美元。

Now, excluding non-cash stock compensation charges of $699,000, non-GAAP net income for this third quarter of '05, was $11 million, or $0.43 per diluted share, compared to the non-GAAP income in the third quarter of '04, of approximately $4.6 million, or $0.26 per diluted share.

現在，不包括 699,000 美元的非現金股票補償費用，2005 年第三季的非 GAAP 淨收入為 1,100 萬美元，或每股稀釋後 0.43 美元，而 2004 年第三季的非 GAAP 收入約為 460 萬美元，或每股稀釋後 0.26 美元。

Non-GAAP net income for the second quarter of '05 was $6.8 million, or $0.27 per diluted share.

2005 年第二季非 GAAP 淨收入為 680 萬美元，即每股 0.27 美元。

On our website, under the Investor Relations tab, we provide a detailed reconciliation between GAAP numbers and the non-GAAP numbers, which details the stock compensation charges for each quarter.

在我們網站的「投資者關係」標籤下，我們提供了 GAAP 數據和非 GAAP 數據之間的詳細對賬，其中詳細列出了每個季度的股票薪酬費用。

And so, now let me discuss some information on this quarter's P&L and then I will move on to the balance sheet.

現在，讓我討論一下本季損益表的一些信息，然後我將轉到資產負債表。

The third quarter was, again, a great success on many accounts with record revenue and record net income before taxes. As I mentioned earlier, increased operating efficiencies helped increase our gross margin for the third quarter to 45.5%. This is above our long-term model of 41 to 44%, which we don't change at this time.

第三季在許多方面再次取得了巨大成功，收入和稅前淨收入均創下歷史新高。 正如我之前提到的，提高營運效率幫助我們將第三季的毛利率提高到 45.5%。 這高於我們長期模型的 41% 至 44%，目前我們不會改變這個數字。

We've said in the past that we expect ASPs to decrease in the 20 to 25% range, year-over-year, on the single SKU basis and expect the blended portfolio ASP to decrease by 10 to 15% year-over-year, as we're able to achieve higher prices on our newer products.

我們過去曾表示，我們預計單一 SKU 的平均售價將年減 20% 至 25%，而混合產品組合的平均售價將年減 10% 至 15%，因為我們能夠為新產品設定更高的價格。

In Q3, our portfolio ASPs decreased by 17% year-over-year, which when taken into account the lower 8 and 9.5% portfolio declines we saw in the first and second quarters of this year, put us well within our target model for the year so far. By the way, we also saw our cost decline in a similar pattern.

在第三季度，我們的投資組合平均售價年減了 17%，考慮到今年第一季和第二季投資組合平均售價分別下降了 8% 和 9.5%，到目前為止，我們的業績遠超今年的目標模型。 順便說一句，我們也看到我們的成本以類似的模式下降。

Operating expenses were about $13.2 million for R&D and SG&A in the third quarter, a $1.9 million increase from the previous quarter, in line with what we planned and guided to.

第三季的研發和銷售、一般及行政費用約為 1,320 萬美元，比上一季增加 190 萬美元，符合我們的計劃和指導。

Let me break this down for you. The majority of the additional spending, about $1.3 million, was allocated to our R&D activities, which came in at $9.2 million. As expected, our acceleration of some of our important R&D milestones resulted in additional planned expenses of a nonrecurring nature, such as acquiring value-added intellectual property and technologies in Q3.

讓我來為您詳細解釋。 額外支出的大部分（約 130 萬美元）分配給了我們的研發活動，研發支出為 920 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，導致了額外的非經常性計畫支出，例如在第三季收購增值智慧財產權和技術。

We were also, again, able to fill some of our strategically important staff openings in the engineering area and R&D expenses were well within our long-term operating model that calls for R&D spending to be at an average of 16 to 17% of our revenue.

我們也能夠填補工程領域一些具有策略意義的職缺，研發費用也完全符合我們的長期營運模式，即研發支出平均佔營收的 16% 至 17%。

I want to take a few minutes to discuss the very flexible spending model that we have been implementing over the past quarters. On the one hand, we've focused on adding strategically important resources, mostly headcount, to our internal infrastructure. On the other hand, as our revenues have increased, we've also been investing in R&D through a discretionary variable model, which includes outsourcing development efforts to expert third party providers.

我想花幾分鐘討論我們在過去幾季一直在實施的非常靈活的支出模式。 一方面，我們專注於為我們的內部基礎設施增加具有策略重要性的資源，主要是員工數量。 另一方面，隨著收入的增加，我們也一直透過自由裁量變數模型投資研發，其中包括將開發工作外包給專業的第三方供應商。

In doing so, we've created a flexible spending model that allows us to operate within our long-term R&D spending model of 17% of revenue and accelerate our roadmap for future products.

透過這樣做，我們創建了一個靈活的支出模式，使我們能夠在佔收入 17% 的長期研發支出模式內運營，並加速我們未來產品的發展路線圖。

On a quarter-by-quarter basis, we can adjust our R&D spending levels as needed, but also taking into account our revenue projections. Going forward, we expect to continue to manage our R&D spending to about 17% of our revenue, as we make continuous investments into people and technology to support our very competitive roadmap.

我們可以按季度根據需求調整研發支出水平，同時也會考慮到我們的收入預測。 展望未來，我們預計將繼續將研發支出控制在收入的 17％ 左右，同時我們將持續投資於人才和技術，以支持我們極具競爭力的發展路線圖。

SG&A expenses in the third quarter were $4 million, which is within our long-term operating model of 6 to 7% of revenues. This is a $523,000 increase from the previous quarter. For the fourth quarter of '05, we expect SG&A to remain with our target long-term model of 6 to 7% of revenue.

第三季的銷售、一般及行政費用為 400 萬美元，符合我們長期營運模式中佔收入 6% 至 7% 的比例。 這比上一季增加了 523,000 美元。 對於 2005 年第四季度，我們預計銷售、一般及行政費用將維持我們長期目標模式，即收入的 6% 至 7%。

Our non-cash compensation charge included, as always, elements of amortization of deferred compensation and some variable charges, and for the second time now, a charge for amortizing the expense of restricted share grants, which we granted in the previous quarter in order to reduce our overall cost associated with the expensing of stock-based compensation.

像往常一樣，我們的非現金薪酬費用包括遞延薪酬攤銷和一些可變費用，並且第二次包括限制性股票授予費用的攤銷費用，我們在上一季度授予了這些限制性股票，以降低與股票薪酬費用相關的總體成本。

Going forward, we expect our non-cash stock compensation charges to be $600,000 to $800,000 in the fourth quarter of fiscal '05. However, the 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.

展望未來，我們預計 2005 財年第四季的非現金股票薪酬費用將達到 60 萬至 80 萬美元。 然而，股票薪酬費用將再次包含基於我們期末股價的小幅變動因素，因此，確切金額難以預測。

Now let's turn to the balance sheet. Our accounts receivable were 40.4 million and our inventory balance at September 30, was at $4.3 million, all of which is finished goods. This represents about 9 to 11 days of inventory. And while this is below our target of 30 days, it is higher and more favorable than the 4 days we had last quarter, and again reflects the strong activity level we saw at the end of the quarter.

現在讓我們來看看資產負債表。 我們的應收帳款為 4,040 萬美元，截至 9 月 30 日的庫存餘額為 430 萬美元，全部為成品。 這代表大約9到11天的庫存。 雖然這低於我們 30 天的目標，但比上一季的 4 天要高且更為有利，再次反映了我們在本季末看到的強勁活動水平。

Accordingly, our deferred income position, which represents the gross margin for shipments in the last three weeks of the quarter, increased from $5 million last quarter, to a record level of $10.9 million at the end of Q3. So we ended the quarter with very positive momentum going into the coming holiday seasons.

因此，我們的遞延收入狀況（代表本季最後三週的出貨量毛利率）從上個季度的 500 萬美元增加到第三季末的創紀錄的 1,090 萬美元。 因此，我們以非常積極的勢頭結束了本季度，並迎來了即將到來的假期。

Headcount at the end of the quarter was about 250. We added 22 employees during the third quarter, most of them in R&D. At the end of the quarter, more than 3/4 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, in India.

本季末的員工總數約為 250 人。我們在第三季增加了 22 名員工，其中大部分在研發部門工作。 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。

As Gary mentioned earlier, we filed an S-1 registration statement today. Because of the SEC quiet period rules, we cannot comment further, but refer you to the S-1 and related press release for more information.

正如加里之前提到的，我們今天提交了 S-1 註冊聲明。 由於美國證券交易委員會的靜默期規則，我們無法進一步評論，但請您參閱 S-1 和相關新聞稿以獲取更多資訊。

We're very excited about the upcoming holiday season and believe we're very well positioned for significant growth in Q4. We believe that our revenue for the fourth quarter will be in the range of $65 million to $75 million.

我們對即將到來的假期感到非常興奮，並相信我們已為第四季度的顯著增長做好了準備。 我們相信第四季的營收將在 6,500 萬美元至 7,500 萬美元之間。

Operating expenses are expected to be approximately $17 million, and we expect our stock-based compensation charges to be between $600,000 and $800,000; GAAP net income per diluted share to be between $0.34 and $0.43, based on approximately 28.5 million weighted average shares outstanding. This number includes an estimated 2.3 million weighted average shares, in light of our S-1 filing.

預計營運費用約為 1,700 萬美元，我們預計股票薪酬費用在 60 萬至 80 萬美元之間；根據約 2,850 萬股加權平均流通股計算，每股 GAAP 攤薄淨收益將在 0.34 美元至 0.43 美元之間。 根據我們的 S-1 文件，該數字包括估計的 230 萬股加權平均股。

Non-GAAP net income per diluted share, excluding our compensation charges, is expected to be between $0.37 and $0.46.

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 0.37 美元至 0.46 美元之間。

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

現在，我想將電話轉回給加里，聽聽他的意見。 加里？

Thank you, Olav. As you can see, from a financial standpoint, the third quarter was once again a great success. It was a smooth and successful quarter from an operational standpoint. Our entire PortalPlayer team continues to execute impeccably on the business plan and product roadmap in supporting our world class customers.

謝謝你，奧拉夫。 如您所見，從財務角度來看，第三季再次取得了巨大的成功。 從營運角度來看，這是一個順利且成功的季度。 我們整個 PortalPlayer 團隊繼續完美地執行業務計劃和產品路線圖，以支援我們世界一流的客戶。

This past quarter we focused on helping our customers successfully introduce their new feature-rich Flash products, which we refer to as Feature-Flash products, for the holiday season, as well as worked with our customers to finalize exciting new hard drive-based products, already introduced in October and expected to be introduced in the fourth quarter.

在過去的一個季度中，我們專注於幫助客戶在假期期間成功推出其功能豐富的新型 Flash 產品（我們稱之為 Feature-Flash 產品），並與客戶合作完成令人興奮的基於硬碟的新產品，該產品已於 10 月推出，預計將於第四季度推出。

The first Feature-Flash product to ship using our technology was the extremely popular iPod Nano, which was launched in early September. As I'm sure you have all heard by now, the Nano uses a PP-5021 device from PortalPlayer, a family member of the 5022. Using advanced package technologies, the 5021 is our smallest chip package ever, reducing the volume by approximately 44% from the 5022.

第一款採用我們技術的 Feature-Flash 產品是極受歡迎的 iPod Nano，該產品於 9 月初推出。 我相信大家現在都已經聽說了，Nano 使用的是 PortalPlayer 的 PP-5021 設備，它是 5022 系列的成員之一。採用先進的封裝技術，5021 是我們迄今為止最小的晶片封裝，體積比 5022 減少了約 44%。

As we have mentioned in the past, we are also increasing our investments in product development for a range of wireless technologies. The first opportunity we see in this area is in bringing new features and functionality to satellite radio players.

正如我們過去所提到的，我們也正在增加對一系列無線技術產品開發的投資。 我們在這領域看到的第一個機會是為衛星廣播播放器帶來新的功能和功能。

Today, we announced that we have teamed up with Korea-based, Humax, one of the world's leading digital satellite set-top box manufacturers, to change the way customers interact with digitally broadcast satellite radio content.

今天，我們宣布與全球領先的數位衛星機上盒製造商之一韓國的 Humax 合作，共同改變客戶與數位廣播衛星廣播內容互動的方式。

Our objective is to help create personal and portable devices that enable end users to enjoy digitally broadcasted content when and where they choose.

我們的目標是幫助創建個人和便攜式設備，使最終用戶能夠隨時隨地欣賞數位廣播內容。

Our first joint project was to assist in the development of the Sirius first wearable satellite radio, the Sirius S15, which was announced in September. The Sirius S50 is a great example on how we can leverage our personal media player platform to the wireless markets. The S50 allows users to store and listen to content whenever and wherever they want. The S50 uses our 5022 device, includes a color display and can store up to 50 hours of Sirius content, or a mix of Sirius content and MP3 and WMA files. Business Week called this device a radical handheld.

我們的第一個合作項目是協助開發 Sirius 首款穿戴式衛星收音機 Sirius S15，該產品於 9 月發布。 Sirius S50 是一個很好的例子，展示了我們如何將個人媒體播放器平台應用於無線市場。 S50 允許使用者隨時隨地儲存和聆聽內容。 S50 使用我們的 5022 設備，包括彩色顯示屏，可儲存長達 50 小時的 Sirius 內容，或混合儲存 Sirius 內容和 MP3 和 WMA 檔案。 《商業周刊》稱這款設備是激進的手持設備。

The digital broadcast market encompasses a variety of technologies, including satellite radio, internet radio, digital audio broadcasting, on-demand content, such as podcasting, and eventually, digital television broadcasting. Our goal is to give consumers greater flexibility and freedom to interact with this content when, where and how they wish.

數位廣播市場涵蓋多種技術，包括衛星廣播、網路廣播、數位音訊廣播、播客等隨選內容以及數位電視廣播。 我們的目標是讓消費者更靈活、更自由地隨時隨地以他們希望的方式與這些內容互動。

Some of the capabilities that we can help enable include being able to listen to and view content while on the go, and in the future, we expect to help establish multiple recording scenarios, similar to a TV digital video recorder.

我們可以幫助實現的一些功能包括能夠在旅途中收聽和查看內容，並且在未來，我們希望幫助建立多種錄製場景，類似於電視數位錄影機。

As a reminder, our first two Feature-Flash design wins are using our 5022 family. With this generation we have successfully developed a unified storage platform that works interchangeably with both hard drive and Flash storage media. In doing so, we offer our customers more flexibility in designing or producing their new product models.

提醒一下，我們前兩次成功的 Feature-Flash 設計均採用我們的 5022 系列。 透過這一代，我們成功開發了可與硬碟和快閃儲存媒體互換工作的統一儲存平台。 這樣，我們就可以為客戶設計或生產新產品模型提供更大的彈性。

With our 5022 family, customers have the option to either use our device as-is for great price performance, or choose the other system components, such as audio or video, for higher-end solutions to use through our coprocessor interface.

透過我們的 5022 系列，客戶可以選擇按原樣使用我們的設備以獲得極高的性價比，或選擇其他系統組件（例如音訊或視訊），以便透過我們的協處理器介面使用更高階的解決方案。

In the future we expect customers will be able to have the same choices for wireless capabilities. Either use our integrated solutions or choose specific vendor solutions that connect to our solutions via a coprocessor interface.

我們預計未來客戶將能夠擁有相同的無線功能選擇。 可以使用我們的整合解決方案，也可以選擇透過協處理器介面連接到我們的解決方案的特定供應商解決方案。

Some customers are choosing our PP 5024 device, because of its fully integrated mixed signal solution. We are excited about the designs we have won for that device and expect it to attract new customers to the PortalPlayer platform. We look forward to giving you more details as our customers' products rollout and they allow us to do so.

一些客戶選擇我們的 PP 5024 設備，因為它具有完全整合的混合訊號解決方案。 我們對贏得裝置的設計感到非常興奮，並希望它能吸引新客戶使用 PortalPlayer 平台。 隨著我們客戶的產品推出並且他們允許我們這樣做，我們期待向您提供更多詳細資訊。

Now let's take a look at some market trends. We see several market drivers accelerating the demand for high-capacity players. First is the availability of podcasts and now music video and TV shows. As consumers continue to download higher quality content, we believe that they will increasingly require more capacity to store that content.

現在讓我們來看看一些市場趨勢。 我們看到有多種市場驅動因素正在加速對大容量播放器的需求。 首先是播客的出現，現在還有音樂錄影帶和電視節目。 隨著消費者繼續下載更高品質的內容，我們相信他們將越來越需要更大的容量來儲存這些內容。

Second, we believe streaming broadcast services, where users can time-shift radio content, will spur demand for high-capacity devices. Third, we believe some consumers will be attracted to subscription services, where they can download as many songs as their players can hold, for one monthly fee.

其次，我們相信串流廣播服務（使用者可以對廣播內容進行時移）將刺激對大容量設備的需求。 第三，我們相信有些消費者會被訂閱服務所吸引，他們只需每月支付一次費用，就可以下載播放器所能容納的任意數量的歌曲。

Lastly, in the future we believe time-shifted video, like TiVo DVR capabilities, will spur the need for larger capabilities.

最後，我們相信未來時移影片（如 TiVo DVR 功能）將刺激對更強大功能的需求。

With the content people store on their personal media players expanding beyond just music, we believe they are going to need higher capacity players to store and manage that content. This is exactly where PortalPlayer excels. Over the next 12 months, we expect 2-gigabyte and 4-gigabyte Flash designs will become the new sweet spot of the market.

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，我們相信他們將需要更大容量的播放器來儲存和管理這些內容。 這正是 PortalPlayer 的優勢。 在接下來的 12 個月裡，我們預計 2 GB 和 4 GB 的快閃記憶體設計將成為市場的新熱點。

Looking ahead, we continue to work on our next generation technologies in preparation for the 2006 product cycle. In the consumer electronics industry, which is very competitive and fast-paced, it is critical to remain on the forefront of technology innovation and that we achieve our deliverables on time. The PortalPlayer team continues to execute crisply on this front.

展望未來，我們將繼續致力於下一代技術的研究，為 2006 年的產品週期做好準備。 在競爭激烈、發展迅速的消費性電子產業，保持技術創新的前沿並按時交付產品至關重要。 PortalPlayer 團隊在這方面繼續出色地執行。

At the same time, we continue to build out parallel chip design teams, to broaden our product offering, accelerate our roadmap and diversify our end-markets. We are very excited about the future.

同時，我們繼續組建並行的晶片設計團隊，以擴大我們的產品範圍，加速我們的發展路線圖，並使我們的終端市場多樣化。 我們對未來感到非常興奮。

In summary, we're having great success with our largest customer. We successfully took a leading position in the Feature-Flash market for our first quarter out. We are excited about the momentum that is building for the fourth quarter. And we continue to invest in future technologies and look forward to showcasing some of those technologies at CES in January.

總而言之，我們與最大的客戶的合作取得了巨大的成功。 我們在第一季成功佔據了 Feature-Flash 市場的領先地位。 我們對第四季度的成長勢頭感到興奮。 我們將繼續投資未來技術，並期待在一月份的 CES 上展示其中一些技術。

We are happy now to 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.

我們現在很高興開始電話會議，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] Randy Abrams of CSFB.

[操作員指示] CSFB 的 Randy Abrams。

I wanted to see if you could start, in looking at your deferred revenue, it was almost 11 million in the quarter, as you cited, which would imply that you started the quarter shipping to higher revenue run rate.

我想看看您是否可以開始查看您的遞延收入，正如您所說，本季的收入接近 1100 萬美元，這意味著您從本季開始就實現了更高的收入運行率。

Maybe talk about why your implied guidance, it seems to suggest a slowdown in shipments. Is that conservatism or is there some other factor playing into that or could they actually hold up at beginning of quarter shipment levels?

也許可以談談為什麼您的隱含指導似乎表明出貨量放緩。 這是保守行為嗎？還是有其他因素在作用？或者他們實際上能否維持本季初的出貨量水準？

Not every week is the same to begin with, right? I mean, from about three weeks of revenue you can certainly [unintelligible] relate to some degree to the quarter revenue, but not exactly.

首先，每週的情況並不都一樣，對吧？ 我的意思是，從大約三週的收入來看，你肯定可以在某種程度上將其與季度收入聯繫起來，但並非完全如此。

Is there anything else? Well, there's always supply constraints on high level complexity products that are ramping fast. We're not, certainly, gating this. If there is any upside or anything in that quarter, we're ready to supply more.

還有什麼嗎？ 嗯，對於快速成長的高複雜度產品來說，總是存在供應限制。 當然，我們不會對此進行限制。 如果該季度有任何好處或任何進展，我們準備提供更多。

Yes. Maybe on those lines, you've always had good visibility when it was more on the drive guise. Are you seeing Nan Flash constraining? Or maybe it's another component, but constraining shipments over the coming months? And what are the implications for first quarter if that is the case?

是的。 也許從這些方面來看，當它更多地處於駕駛狀態時，您總是能擁有良好的可視性。 您看到 Nan Flash 受到限制了嗎？ 或者也許是另一個組件，但限制了未來幾個月的出貨量？ 如果是這樣，那麼對第一季會有什麼影響？

Frankly, yes, we do believe that the demand for high-capacity Flash is actually growing faster than current supply can keep up at this point. Primarily because of that rapid movement that's gone from what was the sweet spot, 256/512, to now the 1, 2 and 4-gig. And as Olav indicated, often when you're ramping fast, it does take time for those to get an equilibrium.

坦白說，是的，我們確實相信，對大容量快閃記憶體的需求實際上增長速度超過了目前的供應速度。 主要是因為這種快速變化已經從最佳點 256/512 轉變為現在的 1、2 和 4-Gig。 正如奧拉夫所指出的，當你快速提升時，通常需要一些時間才能達到平衡。

But as you said, you know, when you look at history, it's often the storage element that can be lagging in that market. But over time, we think they we'll certainly get [two equilibriums] to the right point.

但正如你所說，回顧歷史，你會發現儲存元素往往是市場滯後的原因。 但隨著時間的推移，我們認為我們一定會使[兩個平衡]達到正確的水平。

Okay. And maybe go into--I know you talked about your target for R&D and SG&A, but you are seeing a big step function up in revenue. So maybe talk about what you're doing operationally, what's driving the up tick in expenses in fourth quarter? Are there tape-outs that might be factored in there, or is it expenses for new platforms, so maybe talk about some of what we're seeing in fourth quarter?

好的。 也許可以深入探討一下——我知道您談到了研發和銷售、一般及行政費用的目標，但您看到收入大幅提升。 那麼也許可以談談您在營運方面所做的工作，是什麼導致了第四季度費用的上升？ 其中是否可能考慮到流片成本，或者是新平台的費用，所以也許可以談談我們在第四季度看到的一些情況？

As I said earlier, we're working on an extremely flexible spending model. We've worked on this for a couple of quarters now, and specifically with--you know, if you follow our guidance for Q4, it really comes to fruition here. We have actually been very careful in adding fixed expenses, you know, expenses that are internal infrastructure expenses and have added a lot of variable expenses to our cost structure. Something that we can ramp up real quickly, as I said in my prepared remarks, working with a third-party expert developers outside that we can ramp much faster than internal resources.

正如我之前所說，我們正在研究一種極其靈活的支出模式。 我們已經為此努力了幾個季度，特別是——你知道，如果你遵循我們對第四季度的指導，它真的會取得成果。 實際上，我們在增加固定費用（即內部基礎設施費用）時非常謹慎，並且在我們的成本結構中增加了大量可變費用。 正如我在準備好的演講中所說的那樣，透過與外部第三方專家開發人員合作，我們可以快速地提高某些功能，這樣我們的提高速度比內部資源快得多。

So, that can also mean expensing some intellectual property that we acquire in any particular quarter, depending on some milestones of delivery. So there's a lot of ways to react very flexibly to revenue increase. Especially when you, like our Company, we're really firm with our 17% R&D spending model.

因此，這也意味著根據交付的一些里程碑，我們會在特定季度支出一些我們收購的智慧財產權。 因此，有許多方法可以非常靈活地應對收入增加。 特別是當您像我們公司一樣，我們堅定地堅持 17% 的研發支出模式。

Glen Yeung of Citigroup.

花旗集團的 Glen Yeung。

This is Peter [Karazeris] on for Glen Yeung. I had a question about, in your third quarter last year, you had a somewhat similar revenue growth and deferred income dynamic, and yet that quarter your gross margins were down sequentially. This quarter they're up. I wonder if you could just give us some sense of what's driving that from a pricing or cost environment perspective? And then I have a follow-up.

我是 Peter [Karazeris]，代替 Glen Yeung 報道。 我有一個問題，在去年第三季度，你們的營收成長和遞延收入動態有些相似，但那個季度你們的毛利率卻是環比下降。 本季度，他們的業績有所上升。 我想知道您是否可以從定價或成本環境的角度向我們介紹一下推動這一現象的因素？ 然後我有一個後續問題。

You know, this year is the 5022. The 5022 has been shipping now a couple of quarters and it's ramped really successfully. And with its ramp into real volume production in the third quarter, we were also able to harvest some good operational efficiencies on the supply side.

你知道，今年是 5022。5022 已經出貨幾個季度了，而且銷量非常成功。 隨著第三季實際量產的推進，我們在供應方面也獲得了一些良好的營運效率。

We've passed on most of those efficiencies to our customers and the result was a healthy increase of a couple of basis points in our gross margin.

我們已將大部分效率傳遞給我們的客戶，結果是我們的毛利率健康地增加了幾個基點。

And then, you were talking about the additional the spending in R&D, or keeping it at 17% and trying to work with partners to keep some flexibility, so you can, I guess, deliver to market in a timely fashion.

然後，您談到了研發方面的額外支出，或將其保持在 17%，並嘗試與合作夥伴合作以保持一定的靈活性，這樣我猜您就可以及時將產品推向市場。

There's been some discussion around a coprocessor that's in the Nano. I was curious if you could speak to what type of--what was critical about that technology? And then as you're going into the 2006 design cycle, how you see that playing out?

關於 Nano 中的協處理器已經有一些討論。 我很好奇，您能否談談這項技術的關鍵是什麼？ 那麼，當您進入 2006 年設計週期時，您認為其將如何發展？

Let me just talk about the 17% then and then Gary might be able to add to the coprocessor question. The spending this quarter was really not just to stay on target, it was really to accelerate some, you know, our roadmap. As our revenue increases quarter-over-quarter in the past, and we're able to not just stay on track, but accelerate.

讓我先談談 17%，然後 Gary 可能會補充有關協處理器的問題。 本季的支出其實不僅僅是為了維持目標，而是為了加速我們的路線圖。 由於我們的收入逐季成長，我們不僅能夠保持正軌，而且能夠加速成長。

Let me remind you that I think it was in the last conference call that we told you that next year's generation technology was already taped-out in Q2. That was basically possible because we are willing to spend the 17% of revenue in R&D and to accelerate as much as we can to bring as much R&D activity into the current quarter as we can, to be extremely competitive there in our roadmap.

讓我提醒你一下，我想在上次電話會議中我們告訴過你，明年的一代技術已經在第二季完成了。 這基本上是可能的，因為我們願意將 17% 的收入用於研發，並儘可能加快速度，將盡可能多的研發活動帶入本季度，以便在我們的路線圖中保持極強的競爭力。

And now I'll pass the coprocessor question to Gary.

現在我將把協處理器問題轉交給 Gary。

Thanks, Peter. So of course I won't specifically refer to any customers' products, but let me just talk about the coprocessor strategy in general, because I think it's an important one that we've used most successfully in the past as we enter and we're part of a fast-growing market.

謝謝，彼得。 因此，我當然不會具體提到任何客戶的產品，但我只想總體上談談協處理器策略，因為我認為這是我們進入並成為快速成長市場的一部分時過去最成功使用的一個重要策略。

And one way to look at what the coprocessor is, is essentially, we supply the main CPU on these solutions. Say, for example, a PC like the Intel CPU, and then occasionally you have these adding components like communications cards or in the case of the future, you'd think things like video, where you have an additional component.

了解協處理器的一種方式是，本質上，我們在這些解決方案中提供主 CPU。 舉例來說，像英特爾 CPU 這樣的 PC，然後偶爾你會添加這些元件，如通訊卡，或者在未來的情況下，你會想到像視訊這樣的東西，其中有一個額外的元件。

That component is generally used where customers are really trying to get to market very quickly and where the new features are developing. And so, we've worked very successfully with coprocessor devices in the past in things like USB and FireWire. And then over time, what we see is as we integrate those in, we can then really start to give our customers the cost savings and really an improved power consumption.

該組件通常用於客戶真正想要快速進入市場以及開發新功能的地方。 因此，我們過去在 USB 和 FireWire 等領域使用協處理器裝置取得了非常成功的合作。 隨著時間的推移，我們看到，當我們將這些整合在一起時，我們可以真正開始為我們的客戶節省成本，並真正改善電力消耗。

So the coprocessor model we've used effectively in the past, and you should expect to see it now in these new markets as new features come to market quickly. It's a quick way to get to market. But long-term, we look at integration then as our strategy to drive down the overall system cost and then to do a great job, frankly, on the battery life.

因此，我們過去有效地使用了協處理器模型，隨著新功能迅速進入市場，您應該期望現在在這些新市場中看到它。 這是進入市場的捷徑。 但從長遠來看，我們將整合視為降低整體系統成本的策略，然後坦白說，在電池壽命方面做得很好。

Very good. Thank you and nice quarter.

非常好。 謝謝，祝您一切順利。

Jason Pflaum of Thomas Weisel Partners.

Thomas Weisel Partners 的 Jason Pflaum。

Maybe just to start with the guidance again. Can you talk a little bit about your expectations for the linearity of the fourth quarter? Seasonally, I would think it would be very front-end loaded. And then you can just talk about how that compares to what you saw last year in the fourth quarter?

也許只是重新開始指導。 您能否談談對第四季線性的預期？ 從季節性角度來看，我認為它會非常前端化。 然後您能談談這與去年第四季的情況相比如何嗎？

Jason, I don't think it was too front-end loaded. There was a lot of activity in the first three weeks. But I think October is a very busy month and so is November. Turnaround times in Taiwan and China have really shortened significantly, so that you can have very significant production in October and November that still reaches the shelf [spread] before Christmas.

傑森，我不認為它的前端負載過大。 前三週有很多活動。 但我認為十月是一個非常繁忙的月份，十一月也是。 台灣和中國大陸的周轉時間確實已大大縮短，因此你可以在 10 月和 11 月進行大量生產，並且仍然可以在聖誕節前將產品送到貨架上。

Okay, so no major difference as far as linearity relative to what you saw last year?

好的，那麼就線性而言，與去年相比沒有太大差異嗎？

Not really, no.

不完全是，不是。

Okay. Also, on the gross margin, did you give guidance for the quarter?

好的。 另外，關於毛利率，您是否給出了本季的指引？

No.

不。

We've certainly talked about our long-term model of 41 to 44%, which I've done again.

我們當然已經討論過 41% 到 44% 的長期模型，我再次這樣做了。

Right. It seems like you would get some incremental benefit from the ongoing shift towards the 5022 this quarter and some of the new products that were not rolled out. Is that fair to assume that you could get some incremental benefit?

正確的。 看起來您會從本季度向 5022 的持續轉變以及一些尚未推出的新產品中獲得一些增量收益。 這樣假設你能獲得一些增量利益是否公平？

Well, we've had a manufacturing volume that we've never experienced before either, right? It was the highest manufacturing volume in our Company's history, in Q3. With that and specifically in the third quarter that we just went through, with the ramping of the 5022, we get those operational efficiencies.

嗯，我們的製造量也是前所未有的，對嗎？ 這是我們公司史上第三季的最高生產量。 透過這種方式，特別是在我們剛剛經歷的第三季度，隨著 5022 的增加，我們獲得了這些營運效率。

Let me not extrapolate that out into the fourth quarter. Let me just say that I'm very comfortable with modeling a financially highly successful company around our long-term model of 41 to 44%.

我不想把這一情況推斷到第四季。 我只想說，我非常樂意按照 41% 到 44% 的長期模型來打造一家財務上非常成功的公司。

Okay, fair enough. Just two more questions here. One, I haven't had a chance to look at the actual line, but if you could just talk generally about the purposes of the cash that you intend to raise? I think you have 150 or so million cash on the books right now. Pretty strong position. What's the big driver behind another 100 million or so?

好吧，夠公平。 這裡還有兩個問題。 首先，我還沒有機會了解實際的資金狀況，但您能否大致談談您打算籌集的現金的用途？ 我認為你現在帳面上有大約 1.5 億現金。 相當強勢的地位。 再增加 1 億左右的背後主要動力是什麼？

Jason, unfortunately, I cannot comment on that, as we're in the quiet period, as the SEC calls it.

傑森，不幸的是，我無法對此發表評論，因為我們正處於美國證券交易委員會所說的靜默期。

Okay. And then finally, can you just give us an update on your progress on the handset front? You didn't really talk much about that. Just curious when we might be able to see first revenue in that area? Thank you.

好的。 最後，能否向我們介紹一下手機的進展？ 你確實沒怎麼談論這個。 只是好奇我們什麼時候才能在該地區看到第一筆收入？ 謝謝。

So I'd characterize that with oh, steady as you go. As we indicated, we think to pull together really compelling end-to-end solutions are going to be a key part of that. And so we're actively investing in that space again. I think the strength of an applications processor has proved itself out with the Sirius S50 design win. And so again, I would characterize it as steady as you go.

所以我將其描述為“一路穩步前進”。 正如我們所指出的，我們認為整合真正引人注目的端到端解決方案將是其中的關鍵部分。 因此，我們再次積極投資該領域。 我認為應用處理器的強大功能已經透過 Sirius S50 設計的勝利得到了證明。 因此，我再次將其描述為穩步前進。

Okay. Would 2006 timeframe be reasonable?

好的。 2006 年的時間框架是否合理？

As we've talked about previously, we were probably looking toward the end--to the second half of 2006, primarily because, as you know, the cycle it really takes in both qualification and other reasons. So, that's consistent and that hasn't changed. As I say, we're making steady and I think, smart investments in that space.

正如我們之前談到的，我們可能正在考慮 2006 年下半年的結束，主要是因為，正如你所知，它在資格和其他原因方面確實需要一個週期。 所以，這是一致的，沒有改變。 正如我所說，我們正在對該領域進行穩健且明智的投資。

Shawn Slayton of SG Cowen.

SG Cowen 的 Shawn Slayton。

Just some housekeeping up front here, Olav. Can you give me your numbers for cash from operations and CapEx and D&A?

奧拉夫，這只是一些前期工作。 您能告訴我經營活動現金流、資本支出及折舊攤提前利潤的數字嗎？

Cash from operations is about, let me see, it's pretty close to our earnings, basically, it's about $12 million.

讓我想想，經營活動產生的現金流量大約與我們的收益相當接近，基本上約為 1,200 萬美元。

Okay.

好的。

And on CapEx, it is very low. As you know, we're a fabless Company. Superfabless, basically, working with our partners LSI and eSilicon. So, it's in 1.5 million range.

就資本支出而言，它非常低。 如您所知，我們是一家無晶圓廠公司。 Superfabless 基本上與我們的合作夥伴 LSI 和 eSilicon 合作。 所以，它在 150 萬的範圍內。

Okay, and then the D&A? You just gave me CapEx. Did you just give me D&A? I apologize.

好的，那麼 D&A 呢？ 你剛剛給了我資本支出。 你剛才給了我 D&A 嗎？ 我很抱歉。

I'm sorry, I understood MD&A, I'm sorry.

對不起，我理解MD&A，對不起。

No, depreciation and amortization?

不，折舊和攤提？

We're about 1 million in depreciation and we have no amortization, because there's nothing really that we're amortizing, other than our stock charges.

我們的折舊約為 100 萬美元，而且沒有攤銷，因為除了股票費用之外，我們實際上沒有攤銷任何東西。

Right, okay. Thanks for that. And I don't want to beat this to death again, but it's pretty important to next year's earnings forecast, so I want to make sure I get it right. Kind of on an absolute basis for the current quarter, R&D kind of like a $12 million range, we should model that on an absolute basis into 2006. Is that correct?

好的，好的。 謝謝。 我不想再重複這個問題，但這對明年的獲利預測非常重要，所以我想確保我做對了。 從本季的絕對值來看，研發費用約為 1,200 萬美元左右，我們應該將其絕對值建模為 2006 年的絕對值。對嗎？

I think the easiest way to really look at the spending is really to stick with the 17%. I can't help you, certainly, with what your model has in terms of revenue for all sakes, but if you stick with the 17% spending for R&D, that is how we look at our willingness to spend in order to execute on our roadmap.

我認為真正審視支出最簡單的方法就是堅持 17%。 當然，我無法幫助您了解您的模型在收入方面的情況，但如果您堅持 17% 的研發支出，這就是我們看待為執行我們的路線圖而願意支出的方式。

Okay, understand. Any additional or accelerating activity in your system and package product?

好的，明白了。 您的系統和包裝產品中是否有任何額外或加速的活動？

When we gave the preamble to the questions here, we did refer to the 5024 and I think gave some nice color on that. So, we are very pleased with how that is looking to shape out.

當我們在這裡對問題進行序言時，我們確實提到了 5024，並且我認為對此進行了很好的闡述。 因此，我們對這一結果感到非常滿意。

Okay. Let me ask you, Gary, I remember we talked a couple of quarters ago and you had mentioned that 2005 was likely not the year for video, as far as a converged audio/video portable device. Can you refresh us on your thoughts now as to that, in light of this Apple device and just kind of update us on your understanding of the market audio and video functionality?

好的。 加里，讓我問你一下，我記得我們幾個季度前談過，你曾提到，就融合音頻/視頻便攜式設備而言，2005 年可能不是視頻之年。 鑑於這款 Apple 設備，您能否向我們介紹一下您的想法，並告訴我們您對市場音訊和視訊功能的理解？

Sure. Remember, as we describe the video side, I always have a wry smile, because if you remember, I always stressed--and I still believe that, that these devices are not your two-hour DVD playback device.

當然。 請記住，當我們描述影片方面時，我總是帶著苦笑，因為如果您還記得的話，我總是強調——而且我仍然相信，這些設備不是您的兩小時 DVD 播放設備。

And so, my first preamble when we talk about video is to try to get people off the view that these are devices, I think still of these small handhelds, for many hours of video viewing. And we stressed the sort of more specialized content for these types of devices, you know, movie trailers and such like. I wouldn't claim that we were as bold to bridge out the TV shows, but I think in terms of the size of the content and the type of video content, I think that's consistent with our view and vision. Again, we are probably most skeptical about very long viewing technologies on the device.

因此，當我們談論影片時，我首先要嘗試讓人們不再認為這些設備只是用於長時間觀看影片的設備，我認為這些小型手持設備仍然是一種觀點。 我們強調為這些類型的設備提供更專業的內容，例如電影預告片等。 我不會聲稱我們大膽地將電視節目排除在外，但我認為就內容的規模和視訊內容的類型而言，我認為這與我們的觀點和願景是一致的。 再次，我們可能對該設備上的長時間觀看技術最為懷疑。

And so we still think specialized content, I think we'll see more coming, that sort of gives you sort of the 15-seconds to 15-minutes video smacking capability. We think that's very exciting and we're investing very appropriately on an integration roadmap for that type of profile.

因此，我們仍然認為專業內容，我認為我們會看到更多，這種內容可以為您提供 15 秒到 15 分鐘的錄影功能。 我們認為這非常令人興奮，並且我們正在為這種類型的配置文件的整合路線圖進行非常適當的投資。

Okay, I understand. Can you speak--I know you guys don't want to touch on anything incremental to the S1, but Gary, hopefully you can give us an understanding of your view of the future of PortalPlayer, again, from new markets, maybe stuff that you didn't touch on in the preamble?

好的，我明白了。 你能說說嗎——我知道你們不想談論 S1 的任何增量，但是加里，希望你能讓我們了解你對 PortalPlayer 未來的看法，再次從新市場的角度，也許是你在序言中沒有涉及的東西？

You're going to have a lot of cash on the balance sheet. I just want you to try to maybe add a little bit of flavor on maybe what PortalPlayer looks like as a Company in another 18 months. Do you grow by acquisition? Is it mostly organic? Help us understand, from 50,000 feet, PortalPlayer as a business.

你的資產負債表上將會有大量現金。 我只是希望您能嘗試為 PortalPlayer 公司在未來 18 個月內的發展做一些補充。 您是否透過收購實現成長？ 它主要是有機的嗎？ 幫助我們從 50,000 英尺的高度了解 PortalPlayer 的業務。

Sure, happy to do that. The basis of what we do really well is really providing solutions that we think go into very innovative, portable media playback type devices. And we started off here in the MP3 market, but that, as you've now seen with video and others, is continuing to grow there.

當然，我很樂意這麼做。 我們真正做得好的根本在於提供我們認為適用於非常創新的便攜式媒體播放類型設備的解決方案。 我們是從 MP3 市場起步的，但正如您現在在影片和其他領域所看到的，該市場仍在繼續成長。

So one of the biggest trends that we think is missing, and we've talked about that for successive quarters now, is the idea of having a constantly connected device. And as we think about the different types of technologies that can connect these devices wirelessly, back to either the PC or a satellite service or a coffee shop, there is a wide range of wireless technologies that we think will be an integral part of this type of platform.

因此，我們認為缺少的最大趨勢之一，也是我們連續幾個季度都在討論的，就是擁有一個持續連接的設備的想法。 當我們考慮能夠將這些設備無線連接到個人電腦、衛星服務或咖啡店的不同類型的技術時，我們認為各種各樣的無線技術將成為此類平台不可或缺的一部分。

So it's not just your cell phone with 3G. It's not just the WiFi. We think you'll see technologies like ultra wideband in the future, really start to tie in a very interesting types of connector devices that will start to serve different demographics.

所以它不僅僅是具有 3G 功能的手機。 這不僅僅是 WiFi。 我們認為，未來你會看到超寬頻等技術真正開始與非常有趣的連接器設備類型相結合，並開始服務不同的人群。

I think some folks will, for example, will start to enjoy TV and video content maybe differently than someone who wants news and audio. And so the bottom line is, we think these adjacent market and opportunities that build upon our strength on the media playback and portability offer us now very exciting adjacent markets that we'll be talking about in the future as we [move] to both that CS and in other forms.

例如，我認為有些人會開始以不同於喜歡新聞和音訊的人的方式享受電視和視訊內容。 因此，最重要的是，我們認為這些相鄰市場和機會建立在我們媒體播放和便攜性優勢之上，為我們提供了非常令人興奮的相鄰市場，我們將在未來轉向 CS 和其他形式時談論這些市場。

Okay. I'll yield the floor. Thanks.

好的。 我讓出發言權。 謝謝。

Quinn Bolton of Needham & Company.

尼德漢姆公司的奎因·博爾頓。

Great quarter. First question, Gary, don't know if you can really comment, because it starts to get into your 2006 platform, but you've seen one of your customers introduce a video capable device that uses a coprocessor. I'm wondering if you can say out in 2006, as we see more video enabled devices coming to market, do you think that you'll need a coprocessor to handle H.264 and some of the more advanced video codecs that are being used in the market? And then I've got a few follow-ons.

很棒的一個季度。 第一個問題，加里，不知道您是否真的可以發表評論，因為它開始進入您的 2006 平台，但您已經看到您的一位客戶推出了一款使用協處理器的視訊設備。 我想知道您是否可以透露一下，在 2006 年，隨著我們看到更多支援視訊的設備進入市場，您是否認為需要一個協處理器來處理 H.264 和市場上正在使用的一些更先進的視訊編解碼器？ 然後我還有一些後續內容。

Quinn, I don't think there's one standard answer there. What we do well at by being that main CPU on a motherboard, is actually we put in place the environment where we do play well with other players. We think that for cost and power, a high level of integration generally wins. And as you've seen us in the past integrate in other auxiliary components like FireWire and USB, it would be natural for us to start to attack and look at that level of integration.

奎因，我認為這裡沒有一個標準答案。 作為主機板上的主 CPU，我們做得非常好，實際上我們建立了一個可以與其他玩家良好互動的環境。 我們認為，從成本和功耗的角度來考慮，高整合度通常更勝一籌。 正如您過去看到的那樣，我們整合了 FireWire 和 USB 等其他輔助元件，因此我們自然會開始攻擊並關注該等級的整合。

But having said that, there are always customers that want to have different permutations in things like graphics and video and in wireless. So the answer is, we'll be looking, of course, at the right level of integration at the right time for both cost and power, for now. And then we'll be working--continue to work with a wide variety of folks as this platform becomes much broader in the future.

但話雖如此，總有客戶希望在圖形、視訊和無線等方面有不同的排列組合。 所以答案是，當然，就目前而言，我們會在適當的時間尋找適當的整合水平，以兼顧成本和功率。 然後，隨著這個平台在未來變得更加廣闊，我們將繼續與各種各樣的人合作。

Okay. Sort of a follow-on question. As you look to sort of expand the capabilities of the current 5022 family, I don't know whether that involved an ARM upgrade from ARM 7 to one of the more advanced ARM cores. But to the extent you do select a new ARM core, does all the software--is that all code-compatible between the various ARM processor families, or would there be any rework you need to do to the existing code base, to the extent you did go from, say, an ARM 7 to an ARM 9?

好的。 這有點像後續問題。 當您尋求擴展當前 5022 系列的功能時，我不知道這是否涉及將 ARM 從 ARM 7 升級到更先進的 ARM 核心之一。 但是，如果您確實選擇了新的 ARM 內核，那麼所有軟體是否都與各種 ARM 處理器系列的程式碼相容，或者是否需要對現有程式碼庫進行任何返工，例如從 ARM 7 升級到 ARM 9？

Well, I don't want to speculate here about future product architecture, so I'll sort of step back from the big picture there. And it is fair to say that once you're within a processor family like ARM or MIPs, the migration is considerably easier than you would have if you had jumped processor family recently. So let me leave it at that for this point. I really don't want to tip our hand on our future product roadmaps here.

好吧，我不想在這裡推測未來的產品架構，所以我會從大局上退一步。 可以公平地說，一旦您進入 ARM 或 MIP 等處理器系列，遷移就會比您最近跳到處理器系列時容易得多。 所以我暫時就講到這裡。 我真的不想在這裡透露我們未來的產品路線圖。

Okay. One for Olav. Olav, just first wanted to clarify, did you say that the blended ASP was down 17%, versus year-ago quarter?

好的。 一個給奧拉夫。 奧拉夫，首先我想澄清一下，您是否說過混合 ASP 與去年同期相比下降了 17%？

That's correct.

沒錯。

And then, just sort of some color around that. Do you think that that had to do more with just the volume ramp of the 5022 and that device being on .13, or might it have had to do more with the fact that your biggest customer introduced two new families here in the last month or so?

然後，在它周圍添加一些顏色。 您是否認為這更多地與 5022 的音量上升和該設備在 .13 上有關，或者是否更多地與您最大的客戶在過去一個月左右在這裡推出了兩個新系列有關？

Could there have been any price negotiations sort of involved with the introduction of the new players, that now that those are introduced, pricing comes back to more what you saw, say in the first and second quarter of '05?

在引入新球員時是否涉及任何價格談判？現在這些球員已經加入，價格是否又回到了你所看到的水平，例如 2005 年第一季和第二季的水平？

I don't want to tie the pricing really to any products that are introduced in the market. We just renegotiate our prices from time to time with our customers. And our cost has really developed very positively in the past quarter, as I mentioned earlier, with the ramping of the 5022. And so the renegotiations with our customers were just also in line with what we saw in our cost. It was not really tied to a specific introduction of a product.

我並不想將定價與市場上推出的任何產品掛鉤。 我們只是不時與客戶重新協商價格。 正如我之前提到的，隨著 5022 產量的增加，我們的成本在過去一個季度確實取得了非常積極的變化。因此，與客戶的重新談判也與我們在成本方面看到的情況一致。 它實際上與產品的具體介紹無關。

Okay. Can you say whether those price renegotiations, was that kind of more of an annual basis or is that more of a shorter-term, say quarter-to-quarter?

好的。 您能否說一下這些價格重新談判是按年度進行的，還是按短期進行的，例如按季度進行的？

You know, every customer is different and it's not a [science, it's an art]. It's renegotiating the prices as you ramp in volume, as roadmaps change. It's hard to describe it here, in detail.

你知道，每個顧客都是不同的，這不是一門科學，而是一門藝術。 隨著產量的增加和路線圖的變化，需要重新協商價格。 這裡很難詳細描述。

Okay. And then last question then I'll yield the floor. I'm assuming that none of the gross margin benefit that you saw this quarter came to do with an insourcing or a move to COT. It sounds like you're still heavily [unintelligible] in kind of the eSilicon LSI Logic model. So, to the extent you went COT, that would all be incremental gross margin in the future?

好的。 接下來是最後一個問題，我將讓出發言權。 我認為本季您看到的毛利率收益與內部採購或轉向 COT 無關。 聽起來你還是很嚴重[聽不清楚]在 eSilicon LSI Logic 模型中。 那麼，就您採用 COT 的程度而言，這都是未來的增量毛利率嗎？

We would talk about this if it were this way, yes, absolutely. Nothing has changed in our supply-side model.

如果是這樣的話，我們就會談論這個問題，是的，絕對的。 我們的供應方模式沒有任何改變。

Daniel Ernst of Hudson Square Research.

哈德遜廣場研究公司的丹尼爾恩斯特。

Three questions, if I might, maybe drilling into first the MPEG-4 question. When do you think you can move beyond MPEG-4 SP into some of the full-rate MPEG-4 and VC1, etc., given that that's where the market seems to be going? And maybe answer that question in light of the competition, PixelWorks and Broadcom both making acquisitions in that space this year. NVIDIA talking about things that look like they're in your market and sort of maybe give us an idea of the competitive landscape in the portable media space?

如果可以的話，我有三個問題，首先深入探討 MPEG-4 問題。 考慮到市場的發展方向，您認為何時可以超越 MPEG-4 SP，進入全速率 MPEG-4 和 VC1 等？ 也許可以根據競爭來回答這個問題，PixelWorks 和 Broadcom 今年都在該領域進行了收購。 NVIDIA 能否談談您所在市場中的一些產品，讓我們了解一下便攜式媒體領域的競爭格局？

And then, secondly, on the question of bringing silicon design, now that you're looking at running maybe 75 million in the fourth quarter, is that the level where it just makes sense to bring that in-house?

其次，關於引入矽片設計的問題，現在您預計第四季度的產量可能達到 7500 萬顆，那麼在這個水平上將其引入內部是否合理？

And then, the third question is just to clarify. I think you said that you thought that you could produce things during November that would hit the shelves in Christmas here. Are you saying that you could have the lead times within four weeks? Thanks.

然後，第三個問題只是為了澄清一下。 我想您說過，您認為您可以在十一月生產一些產品，然後在聖誕節期間上架銷售。 您是說您可以在四周內完成交貨嗎？ 謝謝。

Let me take the first two there, Dan. So on the video side, we've been a integral developer of video for an extended period now. And in fact, we have been watching the market very closely in terms of developing at that core competency and core expertise.

丹，讓我先拿前兩個。 因此，在視訊方面，我們長期以來一直是視訊的綜合開發商。 事實上，我們一直在密切關注市場，以發展核心競爭力和核心專業知識。

The question is, when do you put it onto the main CPU? You know, the analogy would be here again with looking, say, at Intel on a motherboard, when is the point that you would bring the graphics and the video into the main core solution?

問題是，什麼時候把它放到主CPU上？ 您知道，再次進行類比，比如說，看看主機板上的英特爾，什麼時候將圖形和視訊納入主核心解決方案？

So, our strategy is to intercept a video roadmap that again we will differentiate. We'll hit the performance targets we need, but at the right price point and with great power consumption. And so, we're not loosing any sleep over the video roadmap here. We think we have it well-placed and again, we think at the time where integration counts, we'll be in good steps for that.

因此，我們的策略是攔截視訊路線圖，然後再次進行區分。 我們將達到所需的效能目標，但價格要合適，而且功耗也要大。 因此，我們不會因為視訊路線圖而擔心。 我們認為我們已經處於有利地位，我們認為在整合至關重要的時候，我們將為此採取良好的措施。

On the COT side of the house, again, you're right, traditional folklore would be, beyond 10 million units you start to move to COT. What I've got to say though, is that from the flexible business model that Olav indicated at earlier, we quite enjoy this flexibility and support we get from large world class suppliers like LSI and others and it gives you a great deal of flexibility to go and make smart investments in other types of IP.

在 COT 方面，您再次說得對，傳統民間傳說是，超過 1000 萬個單位後，您就會開始轉向 COT。 不過，我要說的是，從 Olav 之前提到的靈活的商業模式來看，我們非常享受從 LSI 等大型世界級供應商那裡獲得的這種靈活性和支持，它為您提供了很大的靈活性，可以對其他類型的 IP 進行明智的投資。

So, yes, I think over time we'll certainly start to move to that, but as Olav indicated, we'd make that clear at that time. We're finding our supply partners are responding very favorably to that potential shift to COT and we're enjoying that flexibility and support from those guys.

所以，是的，我認為隨著時間的推移我們肯定會開始朝著這個方向發展，但正如奧拉夫所指出的，我們會在那時明確這一點。 我們發現我們的供應夥伴對於轉向 COT 的潛在反應非常積極，我們也非常享受來自他們的靈活性和支持。

I'll take the last part of your question, Dan, the lead time. Yes, I did say that manufacturing volumes in November, are certainly still a volume that could be sold in December on the shelf.

丹，我來回答你問題的最後一部分，即準備時間。 是的，我確實說過，11 月生產的量肯定還是可以達到 12 月在貨架上銷售的量。

So, this is more of a question certainly for our customers, because I'm not too much in the loop on the manufacturer turnover time. But in general, you can say that two to three weeks is probably the turnover time in China and Taiwan now.

因此，這對我們的客戶來說肯定是一個問題，因為我對製造商的周轉時間不太了解。 但整體來說，現在中國大陸和台灣的周轉時間大概是兩到三週。

Wow, that's good to hear. But Gary, could I actually just maybe get you to comment on the competitive landscape a little bit, if you would?

哇，聽到這個消息真好。 但是加里，如果你願意的話，我可以請你對競爭格局做一點評論嗎？

Sure. This market is getting larger and of course, we start to attract other market entrants. I think the specialization that we still have in the demand from the space and the amount of software still starts to sort of sort the wheat from the chaff. Competitors we are seeing that are actually doing a pretty good job, a better job on the software side are companies like TeleChips, out of Korea, who are in that market space I think are showing quite well.

當然。 這個市場正在變得越來越大，當然，我們也開始吸引其他市場進入者。 我認為，我們在空間需求和軟體數量方面的專業化仍然可以讓我們從中篩選出精華。 我們看到，競爭對手實際上做得相當不錯，在軟體方面做得更好的公司是韓國的 TeleChips 等公司，我認為他們在這個市場領域表現相當不錯。

So that class of customer on the base market. And of course, as these devices start to morph in the future, we expect and will see the more broadline suppliers in this market. And again, our approach there is to really understand the application, to bring the five generations of experience we've done to really drive the balance between power and price performance, so we come out with the most optimized solution.

所以這是基礎市場上的一類客戶。 當然，隨著這些設備在未來開始發生變化，我們預計並將看到這個市場上出現更多的綜合供應商。 再次強調，我們的方法是真正了解應用程序，利用我們五代的經驗來真正實現功率和價格性能之間的平衡，從而得出最優化的解決方案。

So, broadline suppliers, yes, I think you'll see a host of those. They haven't succeeded so far five generations in this market and we don't think that dynamic is going to change. And then we are seeing companies like a TeleChips, that is getting more software intensive. They seem to do a fairly good job in Asia today.

所以，是的，我認為你會看到很多廣泛的供應商。 到目前為止，他們已經在這個市場上五代沒有成功，我們認為這種動態不會改變。 然後我們看到像 TeleChips 這樣的公司正在變得更加重視軟體。 如今他們在亞洲似乎做得相當不錯。

Craig Berger of Wedbush Morgan Securities.

韋德布希摩根證券公司的克雷格伯傑。

He's gone.

他走了。

Adam Benjamin of Jefferies & Company.

傑富瑞公司的亞當‧班傑明。

Just a couple of questions here. Last quarter you had talked about your expectation for significant revenue in Q3 from the 5024. Has that outlook changed at this point?

這裡只有幾個問題。 上個季度您曾談到對 5024 在第三季帶來可觀收入的預期。目前這種預期有改變嗎？

Adam, I don't think we talked about significant revenue from the 5024. We said we would expect significant revenue from Flash-based products. And we always said that the 5024 is a specific Flash product, but the 5022, or now its family member, the 5021, is also a Flash product. So, I think that's the way that we positioned it last quarter.

亞當，我認為我們並沒有談論 5024 帶來的可觀收入。我們說過，我們預計基於 Flash 的產品將帶來可觀的收入。 我們總是說 5024 是一款特定的 Flash 產品，但 5022 或其家族成員 5021 也是一款 Flash 產品。 所以，我認為這就是我們上個季度的定位。

Okay. I mean, you did say specifically significant, but you qualified it as 10 to 90%, a pretty big range. But--.

好的。 我的意思是，你確實說了特別重要，但你將其限定為 10% 到 90%，這是一個相當大的範圍。 但 - 。

Oh, I'm sorry. I thought you were focused on the 5024 versus the 5022. It is absolutely significant revenue from Flash-based products in Q3, yes.

噢，對不起。 我以為你關注的是 5024 與 5022 的對比。是的，第三季基於 Flash 的產品的收入絕對是可觀的。

Okay. Second question is, with regard to the S1 you filed, it specifically references 13 million being shipped into Hon Hai in Q1 and Q2. And you've said previous to this that your first Flash-based revenue had been in Q3. Should we assume that the revenue into Hon Hai in Q1 and Q2 was for hard drive base players?

好的。 第二個問題是，關於您提交的 S1，其中特別提到第一季和第二季向鴻海運送了 1,300 萬台。 您之前曾說過，您的第一筆基於 Flash 的收入是在第三季。 我們是否應該假設鴻海第一季和第二季的營收來自硬碟基礎播放器？

I'm not making any reference to the S1 that you referenced. Our largest customer is working with various ODMs out there. One of them is Inventec and one is Hon Hai. The way that they're allocating the business to one or the other is really nothing I can comment on, Adam.

我沒有提及您所提到的 S1。 我們最大的客戶正在與各種 ODM 合作。 其中一家是英業達，一家是鴻海。 他們將業務分配給其中一個的方式我真的無法評論，亞當。

Okay. Previous to this you've talked about ASP and units on a year-over-year basis. You've given the ASP decline on the year-over-year basis. Can you provide the units for this quarter?

好的。 在此之前，您曾談到 ASP 和單位的年比變化。 您已經給出了同比平均售價的下降情況。 您能提供本季的單位嗎？

Unfortunately, I cannot comment on that either. It's just our policy not--we talk about ASPs to try to give you some color in how our ASPs develop, but we don't talk about units.

不幸的是，我也無法對此發表評論。 這只是我們的政策——我們談論 ASP 是為了讓您了解我們的 ASP 是如何發展的，但我們不談論單位。

Okay. Last question. I'll try this one. The gross margin, your target has always been 41 to 44%. You did a little bit better than that, at 45% this quarter. Obviously, with the arrangement with LSI and eSilicon, there's some give and take there with respect to the ASPs.

好的。 最後一個問題。 我會嘗試這個。 毛利率，您的目標一直是41%到44%。 本季你的表現稍微好一點，達到了 45%。 顯然，根據與 LSI 和 eSilicon 的協議，在 ASP 方面存在一些讓步。

Can you give us a view as to whether you think that target should really be increased or should we be looking at this longer-term or even the next couple of quarters to moderate back to the target range of 41 to 44%? And I'll leave it at that.

您能否告訴我們，您是否認為應該真正提高這一目標，或者我們是否應該考慮長期甚至未來幾個季度，將其回落至 41% 至 44% 的目標範圍？ 我就講到這裡。

I can answer that one, Adam. Actually, we're proud here that we've developed a financially very successful model around a 41 to 44% margin. So, as the margin quarter-over-quarter develops, depending on price negotiations and the cost development and other factors like ramping in volumes that we've never experienced, we still want to say that the 41 to 44% long-term margin model is the one that we actually model our financial future around. This is how I want to put it.

我可以回答這個問題，亞當。 實際上，我們很自豪我們已經開發出一種利潤率在 41% 到 44% 左右的非常成功的財務模型。 因此，隨著利潤率逐季變化，取決於價格談判、成本發展以及其他因素，例如我們從未經歷過的產量增加，我們仍然想說，41% 到 44% 的長期利潤率模型是我們實際建立財務未來模型的依據。 我想這樣說。

Okay. Maybe let me ask one more question on that, Olav, and see if you can answer this. You had a 17% decline in ASPs, yet you had a bump in gross margin in the quarter, which is something to be cheered as a semiconductor company. So, my question is, going forward, could that occur in the next couple of quarters as well?

好的。 奧拉夫，也許我可以再問一個問題，看看你是否能回答這個問題。 雖然平均售價下降了 17%，但本季的毛利率卻有所上升，對於一家半導體公司來說，這是值得高興的事情。 所以，我的問題是，展望未來，這種情況在接下來的幾個季度也會發生嗎？

It could occur in the next couple of quarters, yes. But it doesn't have to.

是的，這可能會在接下來的幾個季度內發生。 但其實沒必要。

Jason Paraschac of Kaufman Brothers.

考夫曼兄弟的 Jason Paraschac。

Just a couple of quick questions, hopefully. One, just to clarify on deferred revenue, that is just showing your margin on the chips that you shipped in basically the final three weeks of the quarter, correct?

希望只是幾個簡單的問題。 首先，只是為了澄清遞延收入，這只是顯示您在本季最後三週發貨的晶片的利潤，對嗎？

That's correct.

沒錯。

Okay. So that would imply about a 25 million revenue shipment in those final three weeks, which leaves, up to the midpoint of your guidance range, only 45 million to go during the rest of the quarter. And that is typical linearity? Am I putting all those pieces together?

好的。 因此，這意味著最後三週的收入約為 2500 萬，而按照您的指導範圍中點計算，本季度剩餘時間的收入僅剩 4500 萬。 這就是典型的線性嗎？ 我把所有這些碎片拼湊在一起了嗎？

Well, you're putting the pieces together. So again, I said not every week is the same, right? And in the last three weeks of September we saw a lot of activity, we said on the call. It's almost three weeks of September, you know our revenue recognition policy. Not every week is the same. We haven't, certainly, used the number that you used, the 25 million, because that implies that we would give guidance to the margin that we ship those products at, so we haven't done that. But, overall, I think the math that you did is an okay math.

嗯，你正在把各個部分拼湊起來。 所以我再說一遍，不是每週都是一樣的，對吧？ 我們在電話會議上說，9 月的最後三週我們看到了很多活動。 現在已經快到九月的三週了，您知道我們的收入確認政策。 每週的情況並不相同。 當然，我們沒有使用您使用的 2500 萬這個數字，因為這意味著我們會對運送這些產品的利潤率給予指導，所以我們沒有這樣做。 但總體來說，我認為你做的計算還不錯。

Okay, but, did I hear your comment to an earlier question correctly, that you would characterize that as typical or not atypical linearity?

好的，但是，我是否正確聽出了您對先前問題的評論，即您將其描述為典型或非典型線性？

You know, we only have really two or three years. I mean, last year was our first year of really volume shipment. This is our second year. So talking about typical patterns for PortalPlayer is a little early. But if I compare it to last year, it's relatively typical.

你知道，我們其實只有兩三年的時間。 我的意思是，去年是我們真正實現大批量出貨的第一年。 這是我們的第二年。 因此談論 PortalPlayer 的典型模式還為時過早。 但如果與去年相比，這相對典型。

Okay. Another clarification. Did you, in the third quarter, recognize revenue from the 5024?

好的。 另一個澄清。 你們在第三季確認了來自 5024 的收入嗎？

No, we have not.

沒有。

Okay. And then the last question, going back to the competitive landscape, obviously there's the coprocessor on the video iPod from Broadcom, but as you talk about the evolution of not just the iPod, but MP3 players in general, adding wireless capabilities and who knows what else, that's inviting other competitors in the ilks of Broadcom or an Intel. How do you defend your turf against those guys encroaching on the total board cost there? And grant it, you're working on some of the developments, but you're also talking about the fact that your chip works so well with these other partners.

好的。 最後一個問題，回到競爭格局，顯然 Broadcom 的視訊 iPod 上有協處理器，但正如你所說的，不僅僅是 iPod 的發展，而且 MP3 播放器總體上也在發展，增加了無線功能，誰知道還有什麼其他功能，這就吸引了 Broadcom 或 Intel 之類的其他競爭對手。 您如何保護自己的地盤，防止那些人侵占那裡的總板面成本？ 誠然，你們正在進行一些開發，但你們也在談論你們的晶片與其他合作夥伴配合得很好這一事實。

Right. From an overall board cost or bill of material, we frankly have, because of the high cost of the storage, never ranked ourselves and take [pride] of how much our percentage of building material is. It's always been a small percentage, because of the large amount of storage there.

正確的。 從整體板材成本或物料清單來看，坦白說，由於儲存成本高昂，我們從未對自己進行排名，也從未為我們的建築材料所佔比例感到自豪。 由於儲存量龐大，所以這個比例一直很小。

And so I think in effect, what we look at is, what can we offer in very low-power, highly integrated solutions there? And as you talk about wireless, unless you're looking at some of the more exotic future technologies, many of the technologies, WiFi and others and Bluetooth, are at a state where they're essentially a pipe.

因此我認為實際上我們所關注的是，我們能提供什麼樣的低功耗、高度整合的解決方案？ 說到無線，除非你研究的是一些更奇特的未來技術，否則許多技術，包括 WiFi 和其他技術以及藍牙，都處於本質上只是管道的狀態。

And in terms of the abilities first to work with a provider that provides that well-standardized optimized pipe, we think we view it frankly as another USB or FireWire connector solution. It is no more than that. It doesn't provide real value-add in terms of them having to do new types of features on their pipe. It's a connectivity solution, like USB and FireWire. In many cases, it's now got more and more commoditized and available from lots of different sources.

就首先與提供標準化優化管道的供應商合作的能力而言，我們認為我們坦率地將其視為另一個 USB 或 FireWire 連接器解決方案。 僅此而已。 就他們必須在管道上添加新類型的功能而言，它並沒有提供真正的增值。 它是一種連接解決方案，就像 USB 和 FireWire 一樣。 在許多情況下，它現在已經越來越商品化，並且可以從許多不同的來源獲得。

And again, we don't measure ourselves on percentage of bill of materials, we view on are we on the right integration roadmap for the sweet spot of price and performance and power and making sure we get that right in time for our largest customers' needs? And that is our paramount focus, versus systemically trying to increase bill of material costs.

再說一次，我們不會根據物料清單的百分比來衡量自己，我們會考慮我們是否在正確的整合路線圖上找到了價格、性能和功率的最佳平衡點，並確保我們及時滿足最大客戶的需求？ 這是我們的首要關注點，而不是有系統地嘗試增加物料成本。

Okay. But if I could just twist that around here. I guess your competitors would look at it as their strategy is to increase their bill of materials. And I would think that them getting a socket, even though if it's a standard wireless chip or some other interface, that's a leg up in them getting a footprint in there and eventually displacing you. Is that a threat in your outlook?

好的。 但如果我能在這裡扭轉一下。 我猜你的競爭對手會認為他們的策略是增加物料清單。 我認為他們獲得一個插座，即使它是一個標準的無線晶片或其他接口，這也是他們在那裡佔據一席之地並最終取代你的優勢。 從您的角度來看，這是一種威脅嗎？

Well, again, if you view that as a stepping point from us as a fifth generation platform provider, you could view that auxiliary component as a very expensive additional cost to a solution. And if that may be the expeditious way to get there in the short-term, but if you view our ability to integrate, to take that component out, that's a great opportunity for us as well.

好吧，再說一次，如果您將其視為我們作為第五代平台提供者的起點，那麼您可能會認為輔助組件對於解決方案來說是一個非常昂貴的額外成本。 如果這可能是短期內實現這一目標的快捷方式，但如果您看看我們整合、取出該元件的能力，這對我們來說也是一個很好的機會。

And so, we're not going to begrudge the early introduction of the coprocessors in the solution. In a way, it sets us then an additional ASP target that we can then roll into our solution and hopefully give our customers ASP savings over that. So, when a platform cost goes up, that essentially gives us the ability to target more integration.

因此，我們不會吝惜在解決方案中儘早引入協處理器。 從某種程度上來說，它為我們設定了一個額外的 ASP 目標，然後我們可以將其納入我們的解決方案中，並希望為我們的客戶帶來 ASP 節省。 因此，當平台成本上升時，這實際上使我們有能力實現更多的整合。

And I don't think, as maybe you're implying, it's going to end up as, who has the highest dollar cost on the platform. That's not how we look at the business. We look at securing that main CPU motherboard slot that we've had for five generations and continuing to run the OS and all the features that surround that.

我不認為，正如你可能暗示的那樣，最終的結果是誰在平台上擁有最高的美元成本。 我們看待業務的方式並非如此。 我們希望確保我們已經擁有五代的主 CPU 主機板插槽的安全，並繼續運行作業系統及其相關的所有功能。

And as we've done successfully now, integrated in many different types of mixed signal capabilities like highest performing USB OTG 2.0 solutions into that solution. So we view ourselves as the central motherboard solution, with an integration roadmap to pull value in from these coprocessors over time.

正如我們現在已經成功做到的那樣，將許多不同類型的混合訊號功能（如性能最高的 USB OTG 2.0 解決方案）整合到該解決方案中。 因此，我們將自己視為中央主機板解決方案，並擁有整合路線圖，以便隨著時間的推移從這些協處理器中獲取價值。

Craig Berger of Wedbush.

韋德布希的克雷格·伯傑。

Thank you for taking my question and congrats on a nice quarter. Can you help us understand what type of insight or visibility you have into 2006 design wins?

感謝您回答我的問題，並祝賀您本季取得了良好的業績。 您能否幫助我們了解您對 2006 年獲獎設計有何見解或見解？

Let me try to give you some color without--as you know, we, from a financial point of view, really look at one quarter out. But it will be fair to say that, for example, we understand the cycles extremely well and understand the cycles of our key customers extremely well in this market. We announced in Q2, that we had taped-out--or given the case of at least one tape-out in the Q2 timeframe of new products that we think will align nicely with our customers' roadmap for '06.

讓我試著給你一些說明——正如你所知，從財務角度來看，我們實際上關注的是未來一個季度的情況。 但公平地說，例如，我們非常了解週期，也非常了解這個市場中我們主要客戶的周期。 我們在第二季宣布，我們已經完成了一項新產品的流片工作——或者說，在第二季度的時間範圍內至少完成了一項新產品的流片工作，我們認為這些新產品將與客戶的 2006 年路線圖完美契合。

So, we've been at this now for multiple generations. We think the '06 roadmap and solutions that we have in place and are developing, are very well suited. In actual fact, frankly, our technologists are really now looking at the '07 timeframe. It's really the '07 now where we're doing lots of work, both on our existing platforms and new platforms on the advanced development. So I would characterize '07 as our advanced development timeframe and '06, we're really in the thick of that development now.

所以，我們已經這樣做了好幾代了。 我們認為我們已經制定和正在開發的 06 年路線圖和解決方案非常適合。 事實上，坦白說，我們的技術人員現在確實在關注 07 年的時間範圍。 現在正是 2007 年，我們正在做大量工作，既針對現有平台，也針對新平台進行高階開發。 因此，我認為 2007 年是我們發展的高級階段，而 2006 年，我們真正處於發展的高峰期。

That's helpful. Thank you. With respect to Q1 seasonality, is normal still down 20 to 30% sequentially, and do you see anything to indicate that Q1 '06 would be anything other than normal?

這很有幫助。 謝謝。 就第一季的季節性而言，正常情況是否仍比上一季下降 20% 至 30%？您是否看到任何跡象表明 2006 年第一季的情況與正常情況不符？

Craig, I can't talk about anything that goes above and beyond Q4 in specific, so let's not talk about Q1 in specific. But let's talk about how we look at '06. So, a year ago or nine-months ago, we were talking about '05 as the year that is probably more transitional than already really consumer electronics seasonally impacted. And so it was. The first two quarters were relatively strong.

克雷格，我無法具體談論超出第四季度的任何內容，所以我們就不要具體談論第一季了。 但讓我們來談談我們如何看待 2006 年。 因此，一年前或九個月前，我們談論 2005 年，認為這一年可能比已經真正受到季節性影響的消費性電子產品更具過渡性。 事實確實如此。 前兩季表現相對強勁。

We said then '06 is probably more of a typical seasonal consumer electronics year and right now we're reevaluating this. We're not quite sure how it's going to turn out, but '06 could have a typical seasonal consumer electronics trend, with the first half a little slower and the second half strong. But it could also still be a year of some traditional trends.

我們當時說 2006 年可能更像是典型的季節性消費性電子產品年，現在我們正在重新評估這一點。 我們不太確定結果會如何，但 2006 年可能會出現典型的季節性消費性電子產品趨勢，即上半年略微放緩，下半年強勁成長。 但它可能仍是一些傳統趨勢的一年。

It's as much as I can say and want to say right now, because it's a little too early to really talk about the whole year and I can't really give you a direct comment on the first quarter of '06 at this time.

這就是我現在能說的和想說的，因為現在談論全年還為時過早，而且我現在無法直接對 2006 年第一季做出評論。

Okay. And then just my final question is, you've got about 10 days of inventory on hand. Can you help us understand your ability to respond to upside requests in Q4?

好的。 我的最後一個問題是，您手邊有大約 10 天的庫存。 您能否幫助我們了解您在第四季度回應上行請求的能力？

We have no concern about it at all. We've made sure, weeks and weeks ago, that we have inventory on hand in our warehouse and then certainly with a lot of flexibility in our supply chain. Let me remind you that LSI, they're sitting in between us and the fab. So we have very strong partners. We have no problem what so ever thinking of being able to supply upside if we're asked to.

我們對此一點也不擔心。 幾週前，我們就已經確保我們的倉庫有庫存，並且我們的供應鏈肯定具有很大的靈活性。 讓我提醒你一下，LSI 就位於我們和晶圓廠之間。 因此我們擁有非常強大的合作夥伴。 如果有人要求我們提供協助，我們絕對願意提供協助。

Thank you. Due to time constraints on today's call, I would like to turn the call back over to Mr. Johnson. Please go ahead, sir.

謝謝。 由於今天電話會議的時間限制，我想將電話轉回給約翰遜先生。 先生，請繼續。

Thank you everyone. Thanks everyone for joining us on the call today. With that, we will simply conclude the conference call. Thanks again.

謝謝大家。 感謝大家今天參加我們的電話會議。 至此，我們將結束電話會議。 再次感謝。

Thank you.

謝謝。

Thank you. We do appreciate your participation in today's call. At this time you may disconnect.

謝謝。 我們非常感謝您參加今天的電話會議。 這時您可以斷開連線。