恩智浦 (NXPI) 2016 Q3 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the third-quarter 2016 earnings call.

女士們，先生們，美好的一天。歡迎參加 2016 年第三季度財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mr. Jeff Palmer, Vice President of Investor Relations. Sir, you may begin.

提醒一下，本次會議正在錄製中。我現在想介紹一下今天會議的主持人，投資者關係副總裁 Jeff Palmer 先生。先生，您可以開始了。

Great. Thank you, Skyler, and good morning to everyone. Welcome to the NXP Semiconductors third-quarter 2016 earnings call. With me on the call today are Rick Clemmer, NXP's President and CEO, and Dan Durn, our CFO.

偉大的。謝謝你，斯凱勒，大家早上好。歡迎參加恩智浦半導體 2016 年第三季度財報電話會議。今天與我通話的還有恩智浦總裁兼首席執行官 Rick Clemmer 和我們的首席財務官 Dan Durn。

If you have not obtained a copy of our third-quarter 2016 earnings press release, it can be found at our Company website under the Investor Relations section at NXP.com. As most of you have likely seen the Qualcomm and NXP press release this morning and we appreciate your patience in waiting for our earnings call to begin. Our earnings call today, we will keep to our prepared remarks, to the key points so we can quickly get your questions. This call is being recorded and will be available for replay from our corporate website.

如果您尚未獲得我們 2016 年第三季度收益新聞稿的副本，可在我們公司網站的 NXP.com 投資者關係部分下找到該新聞稿。正如你們大多數人今天早上可能已經看到高通和恩智浦的新聞稿一樣，我們感謝您耐心等待我們的財報電話會議開始。我們今天的財報電話會議，我們將保持我們準備好的評論，重點，以便我們能夠快速得到您的問題。此通話正在錄音中，可從我們的公司網站重播。

Our call today will include forward-looking statements that involve risks, uncertainties that could cause NXP's results to differ materially from management's current expectations. Please be reminded that NXP undertakes to obligations to revise or update publicly any forward-looking statements. For a full disclosure on forward-looking statements, please refer to our press release.

我們今天的電話會議將包括涉及風險和不確定性的前瞻性陳述，這些風險和不確定性可能導致恩智浦的業績與管理層當前的預期存在重大差異。請注意，恩智浦承擔公開修改或更新任何前瞻性陳述的義務。有關前瞻性陳述的完整披露，請參閱我們的新聞稿。

Additionally, during the call today, we will refer to non-GAAP financial measures. Pursuant to Regulation G, NXP has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures in our third-quarter 2016 press release, which will be furnished to the SEC on Form 6-K and is available on the NXP website. I would like to now turn the call over to Rick.

此外，在今天的電話會議中，我們將參考非 GAAP 財務指標。根據 G 條例，恩智浦在 2016 年第三季度新聞稿中提供了非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬，該新聞稿將通過表格 6-K 提供給 SEC，並在 NXP 上提供網站。我現在想把電話轉給 Rick。

Thanks, Jeff, and welcome everyone to our earnings call today. As Jeff mentioned, we're very excited about the transaction we announced this morning. In lieu of time, we want to provide a summary of our Q3 results, and provide you with guidance for Q4.

謝謝，傑夫，歡迎大家參加我們今天的財報電話會議。正如 Jeff 所說，我們對今天早上宣布的交易感到非常興奮。代替時間，我們想提供我們第三季度結果的摘要，並為您提供第四季度的指導。

We will keep our comments brief, but we're prepared to address any questions you may have concerning the quarterly performance throughout the day. NXP finished Q3 with very good performance. Revenue was up just over 4% sequentially, with all business lines delivering results in line with our guidance.

我們將保持我們的評論簡短，但我們準備解決您可能對全天的季度業績提出的任何問題。恩智浦以非常出色的表現結束了第三季度。收入環比增長略高於 4%，所有業務線的業績均符合我們的指導。

We drove strong non-GAAP operating margin, due to a combination of solid execution by the business and operations team, which drove better-than-planned non-GAAP gross margin, when combined with strong operating expense control. Taken together, this resulted in very strong non-GAAP free cash flow.

由於業務和運營團隊的穩健執行，我們推動了強勁的非公認會計原則營業利潤率，這推動了好於計劃的非公認會計原則毛利率，再加上強大的運營費用控制。總而言之，這導致了非常強勁的非公認會計原則自由現金流。

Looking at the specifics, revenue in Q3 was $2.47 billion an increase of just over 4% versus the prior quarter, and up 62% versus the year-ago period. Looking at the HPMS segment, revenue was $2.1 billion, an increase of just over 4% from the prior quarter, and up 80% from Q3 2015.

具體來看，第三季度的收入為 24.7 億美元，比上一季度增長略高於 4%，比去年同期增長 62%。從 HPMS 部門來看，收入為 21 億美元，比上一季度增長略高於 4%，比 2015 年第三季度增長 80%。

From an operating segment perspective, the results are as follows: Automotive revenue was $853 million, down 1% quarter on quarter, but up 177% from the year-ago period. In terms of product line trends, auto MCU, advanced analog and sensors were all slightly better than planned, with infotainment down modestly.

從運營部門的角度來看，結果如下： 汽車收入為 8.53 億美元，環比下降 1%，但同比增長 177%。在產品線趨勢方面，汽車 MCU、高級模擬和傳感器均略好於計劃，信息娛樂略有下降。

In secure connected devices, revenue was $592 million, up 15% sequentially, and up 87% year on year. With our mobile transaction group, we experienced strong seasonal improvements as a result of both our largest smartphone customer, as well as good traction on new models with Korean and Chinese OEMs. Progress with deploying our mobile mass transit solution in China is going very well.

在安全連接設備方面，收入為 5.92 億美元，環比增長 15%，同比增長 87%。由於我們最大的智能手機客戶以及韓國和中國 OEM 對新型號的良好牽引力，我們的移動交易團隊經歷了強勁的季節性改善。在中國部署我們的移動公共交通解決方案的進展非常順利。

Mobile payments for mass transit, is the perfect intersection of secure payments and high throughput mass transit, all delivered on the mobile device. In China, 6 out of the 10 initial largest cities are up and running with our mobile transit solution, and eight OEMs have launched the solution. Initial activation rates are very good, and post activation top-offs are showing promising trends.

公共交通的移動支付是安全支付和高吞吐量公共交通的完美結合，所有這些都在移動設備上交付。在中國，最初 10 個最大的城市中有 6 個已啟動並運行我們的移動交通解決方案，並且有 8 家 OEM 推出了該解決方案。初始激活率非常好，激活後的充值顯示出有希望的趨勢。

In the MCU group, revenue was up sequentially, as we saw very good demand for 32-bit ARM-based MCUs and solid demand for our i.MX apps processors, which was offset by the roll off of legacy MCUs. Lastly, we experienced solid demand in our mobile audio business, as new products have gained solid traction with Chinese androids and [OEM]s.

在 MCU 組，收入環比上升，因為我們看到對基於 ARM 的 32 位 MCU 的需求非常旺盛，並且對我們的 i.MX 應用處理器的穩定需求被傳統 MCU 的淘汰所抵消。最後，我們的移動音頻業務需求強勁，因為新產品在中國機器人和 [OEM] 中獲得了穩固的牽引力。

Within SI&I our interface and communications infrastructure group, revenue was $476 million, up 8% sequentially and up 76% year on year. In the interface group, demand was strong and slightly ahead of plan due to the seasonal handset trends, similar to what we saw in the mobile transactions group.

在 SI&I 我們的接口和通信基礎設施部門，收入為 4.76 億美元，環比增長 8%，同比增長 76%。在接口組中，由於季節性手機趨勢，需求強勁且略超預期，這與我們在移動交易組中看到的情況相似。

In the RF power group, revenue declined sequentially, as anticipated. At this stage, we believe the wireless base station market will continue to be relatively soft over the intermediate term. Given the supply chain model in the base station market, we continue to have difficulty determining accurate end-market demand trends.

正如預期的那樣，射頻功率組的收入環比下降。現階段，我們認為無線基站市場在中期內將繼續相對疲軟。鑑於基站市場的供應鏈模式，我們仍然難以確定準確的終端市場需求趨勢。

In the digital networking market, we experienced flattish demand as anticipated, and believe the business has begun to bottom out. We are somewhat encouraged as we're seeing some positive trends in terms of design wins, and particularly in the enterprise wireless access and switching space.

在數字網絡市場，我們經歷了預期的平淡需求，並認為業務已開始觸底反彈。我們在某種程度上感到鼓舞，因為我們在設計勝利方面看到了一些積極的趨勢，特別是在企業無線接入和交換領域。

Within SIS, revenue was $178 million, down 11% sequentially and down 34% from a year ago. This was essentially in line with our expectations at the beginning of the quarter. We do not see growth in this business in the near term, as China banking continues to be weak, and there is no incremental benefit to NXP from the US contact EMV market based on the current market and competitive dynamics that we've mentioned in the past.

在 SIS 內部，收入為 1.78 億美元，環比下降 11%，比一年前下降 34%。這基本上符合我們在本季度初的預期。我們認為該業務近期不會增長，因為中國銀行業繼續疲軟，並且基於我們在本文中提到的當前市場和競爭動態，恩智浦沒有從美國接觸 EMV 市場獲得增量收益。過去的。

At this point in time trends within the eGov and transit access end-markets, with some improvement, are not sufficient to offset the decline in the banking revenue. As our fourth-quarter guidance reflects, we're guiding for further step down in this business. We think over the intermediate term, revenue will hover around $150 million per quarter, although Q1s are typically seasonably weak, and our Q1 could be this time.

目前，電子政務和公交接入終端市場的趨勢雖然有所改善，但不足以抵消銀行收入的下降。正如我們第四季度的指導所反映的那樣，我們正在指導該業務進一步下台。我們認為，在中期，收入將徘徊在每季度 1.5 億美元左右，儘管第一季度通常是季節性疲軟的，而我們的第一季度可能就是這個時候。

Turning now to the standard products segment, revenue was $320 million, slightly better than our expectations, reflecting an increase of 6% from the prior quarter, and down 2% from the year-ago period. Turning to our distribution channel performance, the total months of inventory in the distribution channel held steady at 2.5, with absolute dollars of inventory increasing $45 million on a sequential basis.

現在轉向標準產品部門，收入為 3.2 億美元，略好於我們的預期，比上一季度增長 6%，比去年同期下降 2%。談到我們的分銷渠道表現，分銷渠道的總庫存月數穩定在 2.5 個月，庫存的絕對美元數環比增加了 4500 萬美元。

In summary, Q3 was a solid quarter, with a strong financial performance, a positive reflection on the progress towards our committed goals. We view the overall semi market as being [mixed]. In certain end-markets like auto and STD, business trends are very encouraging. However, the market trends in SIS, RF power and digital networking continue to create headwinds for the overall business.

總之，第三季度是一個穩健的季度，財務表現強勁，積極反映了我們在實現承諾目標方面取得的進展。我們認為整個半成品市場是[混合]。在某些終端市場，如汽車和 STD，業務趨勢非常令人鼓舞。然而，SIS、射頻功率和數字網絡的市場趨勢繼續為整體業務帶來不利影響。

We believe we found a bottom in both SIS and digital networking, the two most challenged businesses in our portfolio. Now I'd like to pass the call to Dan for a review of our financial performance. Dan?

我們相信我們在 SIS 和數字網絡這兩個我們投資組合中最具挑戰性的業務中找到了底部。現在我想把電話轉給丹，讓他審查我們的財務業績。擔？

Thanks, Rick, and good morning to everyone on today's call. To get to your questions as quickly as possible, I'm going to read an abbreviated version of my script today, hitting on what we believe are the key points. We will post the complete script on the IR website, after the call.

謝謝瑞克，今天電話中的每個人早上好。為了盡快解決您的問題，我今天將閱讀我的腳本的縮略版本，並觸及我們認為的關鍵點。通話結束後，我們將在 IR 網站上發布完整的腳本。

We delivered strong financial performance in Q3, with key highlights being: we delivered revenue that was above the midpoint of guidance. Our strong operational execution drove non-GAAP gross margin above plan. We tightly controlled our operating expenses, resulting in better fall through and stronger non-GAAP operating margin.

我們在第三季度實現了強勁的財務業績，主要亮點是：我們實現了高於指導中點的收入。我們強大的運營執行力推動非公認會計準則毛利率高於計劃。我們嚴格控制了我們的運營費用，從而實現了更好的跌幅和更強的非公認會計準則營業利潤率。

We generated excellent cash flow in the quarter, and deployed over a $0.5 billion in share repurchases. Specifically, we delivered revenue of $2.47 billion in Q3, up 4% sequentially, and non-GAAP gross margin toward the high-end of our guidance at 50.5%. Total NXP non-GAAP operating margin in Q3 was at the high end of our guidance, at 28%, which is up 240 basis points sequentially, and up 470 basis points in the last two quarters alone. This strong margin improvement demonstrates great progress in driving synergy capture well ahead of plan.

我們在本季度產生了出色的現金流，並部署了超過 5 億美元的股票回購。具體來說，我們在第三季度實現了 24.7 億美元的收入，環比增長 4%，非美國通用會計準則毛利率接近我們指引的高端，為 50.5%。第三季度恩智浦非公認會計原則的總營業利潤率處於我們指導的高端，為 28%，環比增長 240 個基點，僅在過去兩個季度就增長了 470 個基點。這種強勁的利潤率提高表明在推動協同效應方面取得了巨大進展，遠遠超出了計劃。

As we have said in the past, the best way to measure our success in capturing merger synergies is to look at the progression of our non-GAAP operating margin. Since the merger closed, we have successfully driven 540 basis points of non-GAAP operating margin expansion. On a $10 billion revenue run rate, this 540 basis points of margin improvement would suggest that we have already exceeded the $500 million synergy run rate target within the first three quarters post close, and more than a full year ahead of the schedule communicated at the time we announced the merger.

正如我們過去所說，衡量我們在獲得合併協同效應方面是否成功的最佳方法是查看我們的非公認會計原則營業利潤率的進展情況。自合併結束以來，我們已成功推動非 GAAP 營業利潤率增長 540 個基點。在 100 億美元的收入運行率上，這 540 個基點的利潤率提高表明我們在收盤後的前三個季度內已經超過了 5 億美元的協同運行率目標，並且比計劃提前一年多我們宣布合併的時間。

In terms of capital allocation, during the quarter we repurchased 6.5 million shares, at a cost of approximately $555 million, or $86.03 per share. This brings our total year-to-date share repurchases to just over $1.2 billion, or 14.9 million shares, at an average price of $81.62 per share.

在資本配置方面，本季度我們回購了 650 萬股股票，成本約為 5.55 億美元，合每股 86.03 美元。這使我們年初至今的股票回購總額略高於 12 億美元，即 1490 萬股，平均價格為每股 81.62 美元。

I would now like to provide our outlook for the fourth quarter. We currently anticipate Q4 revenue will be in the range of $2.4 billion to $2.5 billion. At the midpoint, we expect revenue to be about $2.44 billion in Q4.

我現在想提供我們對第四季度的展望。我們目前預計第四季度的收入將在 24 億美元至 25 億美元之間。在中點，我們預計第四季度的收入約為 24.4 億美元。

We expect the following trends in the business during that quarter: Auto is expected to be flat, which is well ahead of normal seasonality, and much better than Q4 from the year-ago period. Secure connected devices is expected to be down modestly, in the low single-digit range.

我們預計該季度的業務趨勢如下： 汽車預計將持平，遠超正常季節性，並且比去年同期的第四季度要好得多。安全連接設備預計將適度下降，在低個位數範圍內。

Secure interface and infrastructure is expected to be down modestly, in the low single-digit range. Secure identification solutions is expected to be down in the mid-teens percentage range sequentially. Standard products is expected to be flat sequentially.

安全接口和基礎設施預計將適度下降，在低個位數範圍內。安全識別解決方案預計將依次下降到十幾歲的百分比範圍內。標準品預計依次持平。

We anticipate revenue from manufacturing, corporate, and other to be approximately $52 million. At the midpoint we expect non-GAAP gross margin to be 50.7%, and non-GAAP operating margin to be 28.3%. Lastly, our Q4 guidance contemplates about $12 million of IP license revenue. It is unclear how the pending acquisition will impact our IP revenue pipeline going forward.

我們預計來自製造、企業和其他方面的收入約為 5200 萬美元。在中點，我們預計非美國通用會計準則毛利率為 50.7%，非美國通用會計準則營業利潤率為 28.3%。最後，我們的第四季度指導考慮了大約 1200 萬美元的 IP 許可收入。目前尚不清楚即將進行的收購將如何影響我們未來的知識產權收入渠道。

Finally, I'd like to take a moment to discuss the status of the standard of new products divestiture. We have received all regulatory approvals associated with the divestiture. The disentanglement process is going very well, and we are on track to close the divestiture in Q1 of 2017.

最後，我想花點時間談談新產品剝離標準的現狀。我們已收到與剝離相關的所有監管批准。剝離過程進展順利，我們有望在 2017 年第一季度完成剝離。

From a financial model perspective post divestiture, NXP will drive top-line growth in the range of 5% to 7% CAGR over the 2016 to 2019 timeframe. Post divestiture, NXP will have a superior profit margin profile, with our long-term non-GAAP gross margin in the range of 53% to 57%. We will tightly control our non-GAAP OpEx spend envelope into a range of 14% to 16% for R&D and 6% to 8% for SG&A. Taken together, we anticipate our long-term non-GAAP operating margin to be in the range of 31% to 34% for NXP.

從資產剝離後的財務模型角度來看，恩智浦將在 2016 年至 2019 年期間推動收入增長 5% 至 7% 的複合年增長率。剝離後，恩智浦將擁有優越的利潤率，我們的長期非公認會計原則毛利率在 53% 至 57% 之間。我們將嚴格控制我們的非 GAAP 運營支出信封，將研發支出控制在 14% 到 16% 之間，SG&A 控制在 6% 到 8% 之間。總的來說，我們預計恩智浦的長期非公認會計原則營業利潤率將在 31% 至 34% 之間。

From a timing perspective, as we discussed in our Analyst Day earlier this year, we believe we can enter the lower bound of our long-term margin ranges exiting 2017. This means total Company non-GAAP gross margin should be about 53%, and non-GAAP operating margin should be about 31% as we exit 2017. To be clear, this is an exit rate, not a full-year 2017 number. Our long-term margin progression guidance assumes we continue strong execution of synergy capture, and we minimize the impact of stranded costs from the divestiture throughout 2017.

從時間的角度來看，正如我們在今年早些時候的分析師日所討論的那樣，我們相信我們可以進入 2017 年之後的長期利潤率範圍的下限。這意味著公司的總非公認會計準則毛利率應該在 53% 左右，並且當我們退出 2017 年時，非 GAAP 營業利潤率應約為 31%。需要明確的是，這是一個退出率，而不是 2017 年全年的數字。我們的長期利潤率增長指導假設我們將繼續強有力地執行協同效應，並且我們將整個 2017 年資產剝離造成的擱淺成本的影響降至最低。

In terms of the use of proceeds, NXP will net $2.3 billion from the divestiture. We will use the proceeds to reduce our gross debt, and achieve our 2 times net leverage target. We plan to redeem three tranches of debt.

在收益的使用方面，恩智浦將從剝離中淨賺 23 億美元。我們將使用所得款項來減少我們的總債務，並實現我們的 2 倍淨槓桿目標。我們計劃贖回三批債務。

First, we will redeem the $390 million term loan, due in 2017. Second, we will redeem the $500 million, 5.75% senior notes, due in 2021. Lastly, we will pay down approximately $1 billion of the term loans due in 2020.

首先，我們將贖回 2017 年到期的 3.9 億美元定期貸款。其次，我們將贖回 2021 年到期的 5 億美元、利率為 5.75% 的優先票據。最後，我們將償還 2020 年到期的約 10 億美元定期貸款。

Post the redemptions, gross debt will be approximately $7.5 billion, with a weighted cost of debt of 3.6%, and an annual interest expense of approximately $275 million. Putting this together with Q4 cash balance and adjusted EBITDA that is consistent with Q3 will result in net leverage of 2 times. The ultimate amount of pay down of the 2020 term loans may vary up or down, depending on what is required to achieve the 2 times net leverage target.

贖回後，總債務約為 75 億美元，加權債務成本為 3.6%，年利息支出約為 2.75 億美元。將此與第 4 季度現金餘額和與第 3 季度一致的調整後 EBITDA 相結合，將產生 2 倍的淨槓桿率。 2020 年定期貸款的最終還款金額可能會上下浮動，具體取決於實現 2 倍淨槓桿目標所需的條件。

Lastly, we anticipate that our cash taxes in 2017 will be about $30 million to $35 million per quarter. With that, I would now like to turn the call back to the operator for your questions. Operator?

最後，我們預計 2017 年的現金稅將在每季度 3000 萬至 3500 萬美元左右。有了這個，我現在想把電話轉回接線員來回答你的問題。操作員？

(Operator Instructions)

（操作員說明）

John Pitzer, Credit Suisse.

約翰·皮策，瑞士信貸。

Rick and Dan, congratulations on the announcement this morning. Rick, I just want to go back to the channel inventory. It looks like it was up sequentially in the September quarter. What do you think drove that, and as you look and contemplate your December quarter guidance, what would you expect channel inventory to look like exiting the December quarter?

瑞克和丹，祝賀今天早上的公告。瑞克，我只想回到渠道庫存。看起來它在 9 月季度環比上漲。您認為是什麼推動了這一點，當您查看並考慮您的 12 月季度指導時，您希望渠道庫存在 12 月季度結束時會是什麼樣子？

To be fair, John, it was up, I think it was $34 million. So it was up in terms of dollar level but it was still at 2.5 months of inventory. It still continued to be around that level. To be fair, as we go forward, we're not planning on it changing significantly, but we want to be opportunistic. There's a lot of interesting things developing in the channel market with one of our competitors, and we want to be sure we're playing that opportunistically, to have an impact from a top line revenue growth basis.

公平地說，約翰，它漲了，我想是 3400 萬美元。因此，以美元計價上漲，但仍處於 2.5 個月的庫存水平。它仍然繼續在那個水平附近。公平地說，在我們前進的過程中，我們並不打算對其進行重大改變，但我們希望能夠投機取巧。與我們的競爭對手之一在渠道市場上發展了很多有趣的事情，我們希望確保我們正在投機取巧，以從收入增長的基礎上產生影響。

That's helpful. And then Dan, just want to make sure understand some of the op margin targets you talked about exiting 2017. First, does that include or exclude the standard products divestiture? I apologize if I missed that. And just given the announcement this morning, would there be opportunity to try to accelerate some of the organic synergy gains at NXP ahead of the merger, or how should we think about that?

這很有幫助。然後丹，只是想確保了解您談到的退出 2017 年的一些運營利潤率目標。首先，這包括還是不包括標準產品剝離？如果我錯過了，我很抱歉。今天早上剛剛宣布，是否有機會在合併之前嘗試加速恩智浦的一些有機協同效應，或者我們應該如何考慮這一點？

John, a couple of things. First, the guidance we gave is just providing clarity post the divestiture, how the Company will profile. It is very consistent with what was said at the analyst day, very consistent with what was said at the time we announced the divestiture of standard products. Exiting the year on the run rate basis, we'll be close to the low-end of our margin guidelines. It will not be a full-year 2017 number.

約翰，有幾件事。首先，我們提供的指導只是在剝離後明確說明公司將如何描述。這與分析師日所說的非常一致，與我們宣布剝離標準產品時所說的非常一致。在運行率的基礎上退出這一年，我們將接近我們的保證金指導方針的低端。這不會是 2017 年全年的數字。

In terms of pre-close synergy capture opportunities, we have to be absolutely clear on this. While we can plan for integration as a Company and strong execution post close is a function of really sound granular detailed bottoms-up planning, it is just that, planning.

在關閉前的協同捕捉機會方面，我們必須對此非常清楚。雖然我們可以計劃作為一家公司進行整合，並且強大的執行後關閉是真正完善的、詳細的自下而上計劃的功能，但就是這樣，計劃。

So there will be no change to the decisions we or Qualcomm make as independent companies in the deal pendency period, and we will continue to execute against the plan we just communicated. Post close of the Qualcomm transaction, that is when you will start to see decision making's reflecting the combination of the two entities, and the economic impact associated with it.

因此，在交易未決期間，我們或高通作為獨立公司做出的決定不會改變，我們將繼續執行我們剛剛傳達的計劃。高通交易結束後，您將開始看到決策制定反映了兩家實體的合併，以及與之相關的經濟影響。

Maybe just one thing I'd like to point out, John, we talked about that our Q4 Outlook includes $12 million of intellectual property revenue, and there could be in impact from the decision that we announced this morning associated with that. So we want to be clear that is included in our guidance, and we have to be sure that we fully understand that as we better understand the implications of the announcement today.

也許我只想指出一件事，約翰，我們談到我們的第四季度展望包括 1200 萬美元的知識產權收入，我們今天早上宣布的與此相關的決定可能會產生影響。因此，我們希望明確我們的指導中包含的內容，並且我們必須確保我們完全理解這一點，因為我們更好地理解了今天宣布的影響。

That's helpful, thanks.

這很有幫助，謝謝。

Ross Seymore, Deutsche Bank.

德意志銀行的羅斯·西莫爾。

The first question is on the deal with Qualcomm. How, in your perspective, either Dan or Rick, do you reconcile the earnings power that the Company described at the analyst meeting earlier this year, with the price that Qualcomm is paying and you are accepting that price. Any framework on how you view valuation would be helpful.

第一個問題是關於與高通的交易。在你看來，無論是 Dan 還是 Rick，你如何將公司在今年早些時候的分析師會議上描述的盈利能力與高通支付的價格以及你正在接受的價格相協調。任何關於您如何看待估值的框架都會有所幫助。

I think Ross it is important to realize that pre-rumor price, this represents a 34% premium. So for a transaction of this size, it's a pretty sizable premium. That being said, as we looked at the opportunity that we have on connected devices, we've been talking about this, ultimately we needed to have a better connectivity portfolio, to be able to drive the leadership that we wanted to be able to achieve.

我認為羅斯意識到傳聞前的價格很重要，這代表了 34% 的溢價。因此，對於這種規模的交易，這是一個相當可觀的溢價。話雖如此，當我們看到我們在連接設備上的機會時，我們一直在談論這個問題，最終我們需要擁有更好的連接產品組合，以便能夠推動我們希望能夠實現的領導地位.

Specifically in autonomous driving. It has become more obvious to Kurt and I over the last few quarters, that we needed increased computing horsepower to be able to do machine learning, and really be able to take advantage of the complete ADOT solution as opposed to the areas where we had clearly identified leadership and can drive. We think that is very complementary.

特別是在自動駕駛方面。在過去的幾個季度裡，對 Kurt 和我來說變得更加明顯的是，我們需要增加計算能力才能進行機器學習，並且真正能夠利用完整的 ADOT 解決方案，而不是我們明顯擁有的領域確定的領導能力並能推動。我們認為這是非常互補的。

Although we have a good connectivity platform for our current portfolio, as we looked out at over the next few years, we clearly had to expand our connectivity capability, to be in the leadership position we wanted to on the Internet of Things, and as we focus on secure connections for the smarter world. The combination of this brings it together very nicely.

儘管我們目前的產品組合有一個很好的連接平台，但正如我們在接下來的幾年中所看到的那樣，我們顯然必須擴大我們的連接能力，在物聯網上處於我們想要的領導地位，並且隨著我們專注於智能世界的安全連接。這兩者的結合非常好。

Our Board went through this and approved this, based on their view associated with the price. I think the other thing that we shouldn't lose sight of, is there is a lot of overlap between the shareholders of both companies, and there is clearly an opportunity for both shareholders that view the value creation opportunity as significantly as we do, for them to participate in that by actually buying Qualcomm shares.

我們的董事會根據他們對價格的看法進行了審查並批准了這一點。我認為我們不應該忽視的另一件事是，兩家公司的股東之間存在很多重疊，顯然雙方股東都有機會像我們一樣重視價值創造機會，因為他們通過實際購買高通股票來參與其中。

Thanks for that. As my follow-up, Dan and Rick, you can answer this too if you wish, but you did a great job of running us through where margin structure will be as we think about the next 12 months or so. On the revenue side of the equation, at the same analyst meeting earlier this year, you talked about a 5% to 7% growth rate over time.

感謝那。作為我的後續，Dan 和 Rick，如果你願意，你也可以回答這個問題，但是當我們考慮未來 12 個月左右的時間時，你在引導我們了解保證金結構方面做得很好。在等式的收入方面，在今年早些時候的同一次分析師會議上，你談到了隨著時間的推移 5% 到 7% 的增長率。

I realized that doesn't apply to any given single year, but how are you thinking about that as you look into 2017, as areas like automotive are doing better than people feared, and you are growing well in STD but areas like SIS and maybe the high power RF might be a little disappointing, versus what you might have expected in May?

我意識到這並不適用於任何一年，但是當你展望 2017 年時，你如何看待這一點，因為汽車等領域的表現比人們擔心的要好，而且你在性病方面發展良好，但像 SIS 這樣的領域，也許高功率射頻可能有點令人失望，與您在 5 月份的預期相比？

My answer will probably leave your little unsatisfied. The revenue CAGR we gave you is exactly that, a CAGR over a three-year window. I think we have a portfolio of businesses, and like you point out and like Rick said in his comments, we have got some businesses that are performing really well. We have got some businesses that are performing in line, and then we've got a couple of businesses that are living in a difficult neighborhood right now.

我的回答可能會讓你有點不滿意。我們給你的收入複合年增長率正是如此，三年窗口的複合年增長率。我認為我們有一系列業務，就像你指出的那樣，就像 Rick 在他的評論中所說的那樣，我們有一些業務表現非常好。我們有一些企業表現良好，還有一些企業現在生活在一個困難的社區。

Rather than get into an exercise which guides one year out, what we want to do is stick to the three-year CAGR. You understand the end markets we participate in, you understand the core franchises we have, the leadership positions we have within those respective end markets, and the performance profile of those businesses, and that should give you a pretty good idea of how things will profile next year. But we won't not get into the exercise of guiding a year out.

我們要做的不是進入一個指導一年的練習，而是堅持三年的複合年增長率。您了解我們參與的終端市場，您了解我們擁有的核心特許經營權，我們在這些各自終端市場中的領導地位，以及這些業務的業績概況，這應該讓您對事情的概況有一個很好的了解明年。但我們不會不參與指導一年的工作。

I think the only thing we could add is, when you look at our outlook for Q4, the guidance that we set, we have talked about 2016 will be a transition year for us. And Q4, not being down as it would typically be on a seasonal basis, is actually a little better than the environment. I think it actually portrays a leading indicator relative to it, but as Dan said, we're really only guiding, we have only established that on a three-year compounded growth rate basis, and not an individual year period.

我認為我們唯一可以補充的是，當您查看我們對第四季度的展望，我們設定的指導時，我們已經談到 2016 年對我們來說將是一個過渡年。第四季度並沒有像通常的季節性那樣下降，實際上比環境要好一點。我認為它實際上描繪了一個相對於它的領先指標，但正如丹所說，我們實際上只是在指導，我們只是在三年復合增長率的基礎上確定了這一點，而不是單個年份。

Thanks.

謝謝。

William Stein, SunTrust.

威廉斯坦，SunTrust。

I'll add my congratulations to the deal this morning. I have two questions if I can. First, Dan you highlighted that the Company has already achieved its $500 million cost savings run rate, quite a bit earlier than expected. I wonder how much you see as left, now that you've achieved that? Do you think there is more to go as the Company progresses?

今天早上我要對這筆交易表示祝賀。如果可以的話，我有兩個問題。首先，尤丹強調，公司已經實現了 5 億美元的成本節約運行率，比預期的要早得多。我想知道你現在看到了多少，現在你已經做到了？您認為隨著公司的發展還有更多的路要走嗎？

I think I would use the goalposts of where we are today, and where we will exit 2017. And at the time of the announcement, we talked about this being a synergy capture window. I think with those goalposts in place, and the trajectory implied by those goalposts, I think you can pretty quickly come up to what that is. Rather than go out with a specific number, I think the goalposts get you where you need to be.

我想我會使用我們今天所處的位置以及我們將在 2017 年退出的目標。在宣佈時，我們談到這是一個協同捕獲窗口。我認為有了這些球門柱，以及這些球門柱所暗示的軌跡，我認為你可以很快找到那是什麼。我認為球門柱可以讓您到達需要的位置，而不是使用特定的數字。

Fair enough. The next question is about the seasonally strong growth in autos for Q4, I think seasonally that is a down quarter, but you are guiding up. Should we view this, it sounds certainly like a content growth opportunity. Is this the initial ramp of V2X, is that meaningful part of the separation, or is something going on there? And any update on other V2X design wins in general would be much appreciated. Thank you.

很公平。下一個問題是關於第四季度汽車的季節性強勁增長，我認為季節性是一個下降的季度，但你正在引導。如果我們看到這一點，這聽起來肯定是一個內容增長機會。這是 V2X 的初始階段，是分離的有意義的部分，還是那裡正在發生什麼？一般而言，其他 V2X 設計獲勝的任何更新都將不勝感激。謝謝你。

Will, it is broad-based. I think the key is it is not V2X; V2X it is not a significant revenues contributor in Q4 this year. There is some shipments taking place obviously on the design win we've talked about.

威爾，它是廣泛的。我認為關鍵是它不是 V2X； V2X 在今年第四季度並不是一個重要的收入貢獻者。我們談到的設計勝利顯然有一些出貨量。

But as far as being a significant contributor to revenue, it is not in V2X. It is pretty broad-based, but really focused on the MCUs and beginning to ramp some of the design wins that have been achieved over the last few years, as those begin to be realized and shipped into the customer.

但就收入的重要貢獻者而言，它不在 V2X 中。它的基礎非常廣泛，但真正專注於 MCU，並開始增加過去幾年已經取得的一些設計勝利，因為這些勝利開始實現並交付給客戶。

Stacy Rasgon, Bernstein Research.

Stacy Rasgon，伯恩斯坦研究中心。

I wanted to go back to the deal itself. I understand, I think, the need to achieve a better connectivity portfolio to achieve your goals. But if that is the case, why is selling for $110 to somebody else absolutely the best way to get to that connectivity? If I just look at the stocks right now, in the pre-market Qualcomm's up something like 4% or more. You are up barely 2%, which suggests that right now shareholders of Qualcomm are happier with the deal then shareholders of NXP. Why is this the best way to get what you need, in order to achieve your growth goals?

我想回到交易本身。我認為，我理解實現更好的連接產品組合以實現您的目標的必要性。但如果是這樣的話，為什麼以 110 美元的價格賣給別人絕對是獲得這種連接的最佳方式呢？如果我現在只看股票，在上市前高通公司的漲幅約為 4% 或更多。你只上漲了 2%，這表明現在高通的股東對這筆交易比恩智浦的股東更滿意。為什麼這是獲得您需要的東西以實現您的增長目標的最佳方式？

Stacy, I think, it's obviously any value is what you negotiate between two parties. We can't lose side of the fact that it was a 34% premium to the pre-disclosure, pre-rumor periods. When you think about a transaction of this magnitude, a 34% premium is, at least as we have been advised, pushing the limit associated with it.

斯泰西，我認為，很明顯，任何價值都是你在兩方之間談判的結果。我們不能忽視這樣一個事實，即它比披露前、謠言前時期溢價 34%。當您考慮如此規模的交易時，至少正如我們所獲悉的那樣，34% 的溢價正在推動與之相關的限制。

I think as we think about the future, the value of bringing the two companies together and bringing the most compelling platform in the industry going forward, is just too significant of an opportunity to forego. We think who have gone through this with our board, and our board feels like this is a fair price, and a price that is reasonable for our shareholders.

我認為，當我們考慮未來時，將兩家公司合併在一起並帶來行業中最引人注目的平台的價值，實在是太重要了，不能放棄。我們認為誰與我們的董事會一起經歷了這一切，我們的董事會認為這是一個公平的價格，對我們的股東來說也是一個合理的價格。

Our shareholders frankly have the ability, that if they see the opportunity as you do, or it sounds like you do, and we do, they can participate by buying Qualcomm shares associated with it. So we think it does represent a fair value.

坦率地說，我們的股東有能力，如果他們像您一樣看到機會，或者聽起來像您這樣做，而我們確實這樣做了，他們可以通過購買與之相關的高通股票來參與。所以我們認為它確實代表了一個公允價值。

Clearly, being at the 34% premium to the pre-rumor price is a significant factor associated with it. Stacy, Peter Kelly's joined us too here.

顯然，與傳聞前價格相比溢價 34% 是一個重要因素。斯泰西，彼得凱利也加入了我們。

Stacy, I just want to say one thing. Overall I do think this is a terrific deal. You are right in pointing out that Qualcomm shareholders are very pleased.

斯泰西，我只想說一件事。總的來說，我確實認為這是一筆了不起的交易。你說得對，高通股東非常高興。

As Rick said, the improvement in our stock price versus the unaffected price has been very substantial part. I am not a corporate finance expert, but I think our stock will trade more on account of discounts to close than anything else in the coming months. But I do think this is a terrific deal.

正如里克所說，我們的股票價格相對於未受影響的價格的改善是非常可觀的部分。我不是企業財務專家，但我認為我們的股票將在未來幾個月內因收盤價折價而交易更多。但我確實認為這是一筆了不起的交易。

I guess to follow up on that, though, why wouldn't you be willing to put in the work over the next year to achieve a higher stock price on your own? And this thing isn't going to close for over a year anyways.

不過，我想跟進這一點，您為什麼不願意在明年投入工作以自己實現更高的股價呢？無論如何，這件事不會關閉超過一年。

What makes you think you couldn't get a stock price above $110 on your own by the end of 2017? It seems like, given the margin target you talked about and the growth goals that you talked but at the analyst day, something that would be or should be achievable, with more upside beyond that. So why wouldn't you try to get it now rather than selling out at $110 today?

是什麼讓你認為到 2017 年底你自己的股價不能超過 110 美元？看起來，考慮到你談到的利潤率目標和你談到的增長目標，但在分析師日，這是可以或應該可以實現的，而且還有更多的上行空間。那麼，您為什麼不嘗試立即購買，而不是今天以 110 美元的價格出售呢？

Stacy, I think the key is, we're comfortable with the performance we have laid out. We're very comfortable with the portfolio we half. The opportunity to have a more complete, ubiquitous platform, to be able to address the market opportunities we see, we just thought was too significant an opportunity to forego.

斯泰西，我認為關鍵是，我們對我們所佈置的性能感到滿意。我們對我們一半的投資組合感到非常滿意。擁有一個更完整、無處不在的平台的機會，能夠應對我們看到的市場機會，我們只是認為這個機會太重要了，不能放棄。

We think it is extremely compelling. We think that our shareholders have the ability to achieve a reasonable value out of this transaction, and again, if they believe as strongly as we do in the opportunities, they can participate in it through Qualcomm shares. And there is a significant cross-holding between the two companies in any case, Stacy.

我們認為它非常引人注目。我們認為我們的股東有能力從這筆交易中獲得合理的價值，而且如果他們像我們一樣堅信這些機會，他們可以通過高通股票參與其中。無論如何，Stacy 兩家公司之間存在大量交叉持股。

This has nothing to do with us not believing in what we have laid out. We still feel very comfortable associated with that. If you look at where we have traded over the last couple of years, we typically have traded at a discount to our peers, associated with the industry. So for us to be able to achieve this with a very significant premium for a very large deal is something that we feel like is really a good result, and one that we are very pleased with.

這與我們不相信我們所製定的內容無關。我們仍然對此感到非常自在。如果您查看過去幾年我們的交易地點，我們通常以低於同行的價格交易，與行業相關。因此，對我們來說，能夠以非常大的溢價實現這一目標，我們覺得這確實是一個很好的結果，我們對此感到非常滿意。

As Rick said, this is about creating a powerhouse. This is a fantastic opportunity to create a powerhouse company.

正如里克所說，這是關於創建一個強國。這是創建強大公司的絕佳機會。

Okay, thank you.

好的謝謝你。

Operator we will take one last call here this morning. We want to keep this abbreviated today.

接線員今天早上我們將在這裡接聽最後一個電話。我們今天想保持這個縮寫。

Tore Svanberg, Stifel.

斯托爾·斯萬伯格，Stifel。

Rick, you mentioned the secure ID business is bottoming, and I think you've said for a few quarters you expect it to be down again sequentially in the double digits for the December quarter. What are some of the milestones that we should look out for that business plan stabilizing?

Rick，您提到安全 ID 業務正在觸底，我認為您已經說過幾個季度，您預計它會在 12 月季度以兩位數的順序再次下降。為了穩定該業務計劃，我們應該注意哪些里程碑？

That is a really good question. I think we shouldn't lose sight of, that business is really the technology, that gives us the ability to provide security on a broad-based set of solutions. In addition to that, obviously a product shipments that take place associated with it.

這是一個非常好的問題。我認為我們不應該忽視，業務實際上就是技術，它使我們能夠在基礎廣泛的解決方案上提供安全性。除此之外，顯然與它相關的產品出貨量。

And clearly, we've had the benefit of the stocking of the contact-less bank cards in China, which we were at the end of. Now, it's going to be more of a replenishment cycle associated with it, which is not going to offer the same volumes that we've had in the past. With some of the competitive practices and activities we see associate with contact base, we're actually being very selective in our participation associated with it, and that is the reason why the business is not performing as we would have liked for it to, several years ago.

很明顯，我們已經受益於在中國儲備非接觸式銀行卡，而我們已經結束了。現在，它將更像是一個與之相關的補貨週期，這將不會提供與我們過去相同的數量。由於我們看到與聯繫人基礎相關的一些競爭實踐和活動，我們實際上在參與相關方面非常有選擇性，這就是為什麼業務沒有按照我們希望的那樣表現的原因，幾個幾年前。

We're down to a point where we think it will be stable. We've been disappointed in the past. We did talk about the fact that there is a seasonality to that business, which is typically down in Q1. So even if we're at this bottom, it be that in any individual quarter. It could go below that. But we think we're at that run rate.

我們已經到了我們認為它會穩定的地步。我們過去一直很失望。我們確實談到了該業務存在季節性這一事實，該業務通常在第一季度有所下降。因此，即使我們處於這個底部，在任何一個季度都是如此。它可能會低於這個值。但我們認為我們正處於這樣的運行速度。

And actually as a percentage of the total volume, now the trains have ticketing, as well as the eco side, becomes a larger share of the total, and we do see a number of design wins there. As we have talked about in the past, that tends to be fairly lumpy, so it's not really a nice smooth progression associated with it. We do feel good about the business, and again the key is trying to drive the security technology on a broad base across many applications for the total Company. Especially when you begin to think about it on a combined basis.

實際上，作為總量的百分比，現在火車有票務，以及生態方面，成為總量的更大份額，我們確實看到了一些設計勝利。正如我們過去所談到的，這往往是相當不穩定的，所以這並不是一個與之相關的平滑進展。我們確實對這項業務感覺良好，而關鍵是再次嘗試在整個公司的許多應用程序中廣泛地推動安全技術。尤其是當你開始綜合考慮它時。

Thank you for that, and as my follow-up, you mentioned the wireless base station market seems to still be soft and probably will remain soft. What are some of the data points to support that, and is there any visibility as to when that market potentially starts growing again?

謝謝你，作為我的後續，你提到無線基站市場似乎仍然疲軟，並且可能會保持疲軟。有哪些數據點可以支持這一點，是否有任何關於該市場何時可能再次開始增長的可見性？

The data points to support that are revenue, which continues to be hard to predict, based on the supply chain that is not easy to call. I think, when you think about the fundamental assumptions, I think we're going to continue to see an expansion of data over wireless networks. So you should see fundamentally the ability for base stations to grow. But it is virtually impossible for us to project when that will take place.

支持的數據點是收入，這仍然難以預測，基於不容易調用的供應鏈。我認為，當您考慮基本假設時，我認為我們將繼續看到無線網絡上的數據擴展。所以你應該從根本上看到基站增長的能力。但我們幾乎不可能預測何時會發生這種情況。

We continue to be a leader in that space, so it's a very positive opportunity for us. It is a profitable business. As we see the industry moving to more content associated with -- across the wireless networks, we do think there's some opportunities for the early implementation of 5G, or massive MIMO that could play a role in increases in revenue in the upcoming quarters.

我們將繼續成為該領域的領導者，因此這對我們來說是一個非常積極的機會。這是一項有利可圖的業務。隨著我們看到行業轉向更多與無線網絡相關的內容，我們確實認為早期實施 5G 或大規模 MIMO 可能會在未來幾個季度的收入增長中發揮作用。

It is certainly not going to be a factor in the next few quarters. We expect that business to continue, it will be really hard to predict, but very nice profitability, and one that we continue to be a leader in.

這肯定不會成為未來幾個季度的一個因素。我們預計該業務將繼續下去，這將很難預測，但盈利能力非常好，並且我們將繼續成為領導者。

Fair enough, thank you.

夠公平的，謝謝。

Everyone, thank you very much for attending our call today. We do realize it was an abbreviated call, but given the announcement the first thing this morning, we wanted to let you get back to writing your notes and things. We really appreciate all your support. With that, we would like to and the call today. Thank you very much.

大家，非常感謝您今天參加我們的電話會議。我們確實意識到這是一個簡短的電話，但鑑於今天早上的第一件事就是宣布，我們想讓你回去寫你的筆記和東西。我們非常感謝您的所有支持。有了這個，我們想和今天的電話。非常感謝。

Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。大家，有一個美好的一天。