安森美 (ON) 2019 Q2 法說會逐字稿

Good day, ladies and gentlemen.

女士們，先生們，美好的一天。

Welcome to the ON Semiconductor Second Quarter 2019 Earnings Conference Call.

歡迎參加安森美半導體 2019 年第二季度收益電話會議。

(Operator Instructions) As a reminder, this call may be recorded.

（操作員說明）作為提醒，此呼叫可能會被錄音。

I would now like to introduce your host for today's conference, Parag Agarwal, Vice President of Corporate Development and Investor Relations.

我現在想介紹一下今天會議的主持人，企業發展和投資者關係副總裁 Parag Agarwal。

Please go ahead.

請繼續。

Thank you, Chris.

謝謝你，克里斯。

Good morning and thank you for joining ON Semiconductor Corporation Second Quarter 2019 Quarterly Results Conference Call.

早上好，感謝您參加安森美半導體公司 2019 年第二季度季度業績電話會議。

I'm joined today by Keith Jackson, our President and CEO; and Bernard Gutmann, our CFO.

今天，我們的總裁兼首席執行官 Keith Jackson 也加入了我的行列；和我們的首席財務官 Bernard Gutmann。

The call is being webcast on the Investor Relations section of our website at www.onsemi.com.

該電話正在我們網站 www.onsemi.com 的投資者關係部分進行網絡直播。

A replay of this broadcast along with our earnings release for the second quarter 2019 will be available on our website approximately 1 hour following this conference call, and the recorded broadcast will be available for approximately 30 days following this conference call.

本次廣播的重播以及我們 2019 年第二季度的收益發布將在本次電話會議後約 1 小時在我們的網站上提供，錄製的廣播將在本次電話會議後約 30 天內提供。

The script for today's call and additional information related to our end markets, business segments, geographies, channels and share count are also posted on our website.

今天電話會議的腳本以及與我們的終端市場、業務部門、地域、渠道和股票數量相關的其他信息也發佈在我們的網站上。

Our earnings release and this presentation include certain non-GAAP financial measures.

我們的收益發布和本演示文稿包括某些非公認會計準則財務指標。

Reconciliation of these non-GAAP financial measures to most directly comparable measures under GAAP are in our earnings release, which is posted separately on our website in the Investor Relations section.

這些非 GAAP 財務指標與 GAAP 下最直接可比指標的對賬在我們的收益發布中，該發佈在我們網站的投資者關係部分單獨發布。

During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the company.

在本次電話會議期間，我們將對未來事件或公司未來財務業績做出預測或其他前瞻性陳述。

The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements.

相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。

We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from projections.

我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測存在重大差異。

Important factors which can affect our business, including factors that could cause actual results to differ from our forward-looking statements, are described in our Form 10-Ks, Form 10-Qs and other filings with Securities and Exchange Commission.

可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們提交給證券交易委員會的 10-Ks 表格、10-Qs 表格和其他文件中進行了描述。

Additional factors are described in our earnings release for second quarter of 2019.

我們在 2019 年第二季度的收益報告中描述了其他因素。

Our estimates or other than forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors, except as required by law.

我們的估計或其他前瞻性陳述可能會發生變化，公司不承擔更新前瞻性陳述以反映實際結果、更改的假設或其他因素的義務，除非法律要求。

During the third quarter, we will attend Jefferies 2019 Semiconductor, Hardware and Communications Infrastructure Summit in Chicago on August 27, Citi Global Technology Conference in New York on September 5 and Deutsche Bank Technology Conference in Las Vegas on September 10.

第三季度，我們將參加 8 月 27 日在芝加哥舉行的 Jefferies 2019 半導體、硬件和通信基礎設施峰會、9 月 5 日在紐約舉行的花旗全球技術會議和 9 月 10 日在拉斯維加斯舉行的德意志銀行技術會議。

Now let me turn it over to Bernard Gutmann, who will provide an overview of our second quarter 2019 results.

現在讓我把它交給伯納德·古特曼，他將概述我們 2019 年第二季度的業績。

Bernard?

伯納德?

Thank you, Parag, and thank you, everyone, for joining us today.

謝謝你，帕拉格，謝謝大家今天加入我們。

Geopolitical and macroeconomic factors impacted our second quarter revenue.

地緣政治和宏觀經濟因素影響了我們第二季度的收入。

Sharper-than-expected broad-based inventory correction, especially in the automotive market, was the driver of lower-than-expected revenue in the second quarter.

超出預期的廣泛庫存修正，尤其是在汽車市場，是第二季度收入低於預期的驅動因素。

Furthermore, we saw weakness in our communications revenue as we temporarily halted shipments to a major customer to comply with U.S. Federal law.

此外，我們看到我們的通信收入疲軟，因為我們暫時停止向主要客戶發貨以遵守美國聯邦法律。

Despite headwinds to our top line during current cyclical downturn in the semiconductor industry, our execution continues to be solid and we continue to post strong margin and earnings performance.

儘管在當前半導體行業的周期性低迷期間我們的收入受到不利影響，但我們的執行仍然穩健，我們繼續保持強勁的利潤率和盈利表現。

So far, in the current downturn, cyclicality in our revenue and margins has been lower than that of our peer group.

到目前為止，在當前的低迷時期，我們的收入和利潤率的周期性一直低於我們的同行。

Our performance thus far speaks to the transformed nature of our business and our focus on highly differentiated power, analog, sensor and connectivity products for automotive, industrial and cloud power end markets.

迄今為止，我們的業績體現了我們業務轉型的本質，以及我們專注於汽車、工業和雲電源終端市場的高度差異化電源、模擬、傳感器和連接產品。

Key secular trends in automotive, industrial and cloud power end markets remain intact, and we continue to make prudent investments to strengthen our competitive position in our strategic end markets and to further improve our industry-leading cost structure.

汽車、工業和雲能源終端市場的主要長期趨勢保持不變，我們將繼續進行審慎的投資，以加強我們在戰略終端市場的競爭地位，並進一步改善我們行業領先的成本結構。

Our design win pipeline in key growth areas continues to expand at a rapid pace.

我們在關鍵增長領域的設計贏得管道繼續快速擴張。

Though the second quarter was challenging from the revenue perspective, current booking trends point towards stabilization in business conditions.

儘管從收入的角度來看，第二季度充滿挑戰，但當前的預訂趨勢表明業務狀況趨於穩定。

Demand trends from automotive customers have stabilized, and bookings from communications customers have improved.

汽車客戶的需求趨勢趨於穩定，通信客戶的預訂量有所改善。

We believe that distribution inventory correction should be nearly complete by the end of the third quarter or early Q4 of 2019.

我們認為，到 2019 年第三季度末或第四季度初，分銷庫存調整應接近完成。

Although we are seeing stabilization in demand at lower level of revenue, we're not seeing much evidence of any meaningful recovery in demand.

儘管我們看到需求在收入水平較低的情況下趨於穩定，但我們沒有看到太多證據表明需求有任何有意義的複蘇。

While we are encouraged by the stabilization in business conditions, we are cognizant of risks arising from unforeseen geopolitical and macroeconomic events, and we are managing our business to adjust to the near-term volatility in demand.

雖然我們對商業環境的企穩感到鼓舞，但我們認識到不可預見的地緣政治和宏觀經濟事件帶來的風險，我們正在管理我們的業務以適應近期需求的波動。

We have taken measures to control our operating expenses in line with relatively soft business conditions.

我們已根據相對疲軟的經營環境採取措施控制經營費用。

We believe that a highly diversified customer base, exposure to the fastest-growing semiconductor end markets and long life cycle of many of our products should help us better navigate the current slowdown in demand as compared to broader analog and power semiconductor industry.

我們認為，與更廣泛的模擬和功率半導體行業相比，高度多元化的客戶群、對增長最快的半導體終端市場的敞口以及我們許多產品的較長生命週期應該有助於我們更好地應對當前需求放緩。

We remain upbeat about our future, and, as I noted earlier, we are making prudent strategic investment to strengthen and build our leadership in key strategic markets and to improve our cost structure.

我們對我們的未來保持樂觀，正如我之前提到的，我們正在進行審慎的戰略投資，以加強和建立我們在關鍵戰略市場的領導地位，並改善我們的成本結構。

In the second quarter, we closed the acquisition of Quantenna Communications, which we believe will strengthen our presence in connectivity applications for industrial and automotive end markets.

在第二季度，我們完成了對 Quantenna Communications 的收購，我們相信這將加強我們在工業和汽車終端市場連接應用領域的影響力。

We also recently announced our plans to add the first 300-millimeter fab to our manufacturing network in a phased transaction over the next 4 years.

我們最近還宣布了我們計劃在未來 4 年內分階段將第一座 300 毫米晶圓廠添加到我們的製造網絡中。

The addition of this fab in a staged process should accelerate our progress towards our 2022 target financial model, enable savings of approximately $1 billion in capital expenditures over the next several years and provide sufficient capacity to support our long-term growth at a highly competitive cost structure.

在分階段的過程中增加這個工廠應該會加速我們向 2022 年目標財務模型的進展，在未來幾年節省大約 10 億美元的資本支出，並提供足夠的能力以極具競爭力的成本支持我們的長期增長結構體。

Now let me provide you details on our second quarter 2019 results.

現在讓我為您提供有關我們 2019 年第二季度業績的詳細信息。

Total revenue for the second quarter of 2019 was $1.348 billion, a decrease of 7% as compared to revenues of $1.456 billion in the second quarter of 2018.

2019年第二季度總收入為13.48億美元，比2018年第二季度的14.56億美元下降7%。

The year-over-year decline in revenue was primarily driven by well-publicized macroeconomic and geopolitical factors, which have impacted the overall semiconductor industry.

收入同比下降的主要原因是廣為人知的宏觀經濟和地緣政治因素，這些因素影響了整個半導體行業。

GAAP net income for the second quarter was $0.24 per diluted share as compared to $0.37 -- $0.35 in the second quarter of 2018.

第二季度的 GAAP 淨收入為每股攤薄收益 0.24 美元，而 2018 年第二季度為 0.37 美元 - 0.35 美元。

Non-GAAP net income for the second quarter was $0.42 per diluted share as compared to $0.46 in the second quarter of 2018.

第二季度非美國通用會計準則淨利潤為每股攤薄收益 0.42 美元，而 2018 年第二季度為 0.46 美元。

GAAP gross margin for the second quarter was 37%.

第二季度的GAAP毛利率為37%。

Non-GAAP gross margin for the second quarter was 37.1%.

第二季度非美國通用會計準則毛利率為 37.1%。

Year-over-year, our second quarter 2019 non-GAAP gross margin declined by 106 basis points primarily due to lower revenue.

與去年同期相比，我們 2019 年第二季度的非公認會計原則毛利率下降了 106 個基點，主要是由於收入下降。

Despite a meaningful quarter-over-quarter decline in revenue in the second quarter, we delivered solid gross margin performance, with gross margin flat as compared to that in the first quarter.

儘管第二季度收入環比大幅下降，但我們的毛利率表現穩健，與第一季度相比毛利率持平。

Our GAAP operating margin for the second quarter of 2019 was 11.7% as compared to 13.5% in the second quarter of 2018.

我們 2019 年第二季度的 GAAP 營業利潤率為 11.7%，而 2018 年第二季度為 13.5%。

Our non-GAAP operating margin for the second quarter of 2019 was 15.7% as compared to 16.3% in the second quarter of 2018.

我們 2019 年第二季度的非公認會計原則營業利潤率為 15.7%，而 2018 年第二季度為 16.3%。

The year-over-year decline in operating margin was driven largely by lower gross margin.

營業利潤率同比下降主要是由於毛利率下降。

GAAP operating expenses for the second quarter were $341 million as compared to $358 million for the second quarter of 2018.

第二季度的 GAAP 運營費用為 3.41 億美元，而 2018 年第二季度為 3.58 億美元。

Non-GAAP operating expenses for the second quarter were $288 million as compared to $318 million in the second quarter of 2018.

第二季度非美國通用會計準則運營費用為 2.88 億美元，而 2018 年第二季度為 3.18 億美元。

The year-over-year decline in second quarter operating expenses was driven by aggressive expense control, 0 bonus accrual and the reversal of bonuses accrued in the first quarter of 2018 -- 2019.

第二季度運營費用同比下降的原因是積極的費用控制、0 獎金應計以及 2018 年第一季度 - 2019 年第一季度應計獎金的逆轉。

Second quarter free cash flow was $69 million and operating cash flow was $222 million.

第二季度自由現金流為 6900 萬美元，經營現金流為 2.22 億美元。

Capital expenditures during the second quarter were $154 million, which equates to a capital intensity of 11%.

第二季度的資本支出為 1.54 億美元，相當於 11% 的資本密集度。

We exited the second quarter of 2019 with cash and cash equivalents of $885 million as compared to $940 million in the first quarter of 2019.

我們在 2019 年第二季度結束時的現金和現金等價物為 8.85 億美元，而 2019 年第一季度為 9.4 億美元。

We used to $50 million of cash to repurchase 2.6 million shares of our stock during the second quarter.

我們在第二季度用 5000 萬美元現金回購了 260 萬股我們的股票。

At the end of the second quarter, days of inventory on hand were 137 days, up by 9 days as compared to 128 days in the first quarter of 2019.

二季度末，庫存天數137天，比2019年一季度的128天增加9天。

This increase in inventory was driven primarily by the inclusion of Quantenna's results for a few days during the second quarter and by the fair market value step-up of Quantenna's inventory.

庫存增加的主要原因是 Quantenna 在第二季度幾天的業績以及 Quantenna 庫存的公平市場價值增長。

Had we included Quantenna's results without fair market value step-up for the entire second quarter, our days of inventory at the end of the second quarter would have been 132 days, up 4 days as compared to 128 days in the first quarter.

如果我們將 Quantenna 的業績包括在整個第二季度沒有公平市場價值提升的情況下，我們在第二季度末的庫存天數將是 132 天，比第一季度的 128 天增加了 4 天。

We intend to lower the days of inventory in our balance sheet in the third quarter.

我們打算在第三季度降低資產負債表中的庫存天數。

Distribution resales increased meaningfully in the second quarter over the first quarter.

與第一季度相比，第二季度的分銷轉售量顯著增加。

Distribution inventory in terms of weeks declined in quarter-over-quarter in the second quarter and is now within our target range of 11 to 13 weeks.

第二季度，按週計算的分銷庫存環比下降，目前處於我們 11 至 13 週的目標範圍內。

We expect to see further reduction in our distribution inventories in terms of days in the third quarter.

我們預計第三季度我們的分銷庫存天數將進一步減少。

As we noted in our previous earnings conference call, we're aggressively managing our distribution inventory to ensure healthy level of inventory and distribution channel.

正如我們在之前的財報電話會議中指出的那樣，我們正在積極管理我們的分銷庫存，以確保庫存和分銷渠道的健康水平。

We believe that in addition to secular growth drivers in automotive, industrial and cloud power markets, our proactive management of distribution inventory has been a key reason behind relatively lower level of volatility in our revenue over the last several quarters as compared to volatility in revenue of our peers.

我們認為，除了汽車、工業和雲能源市場的長期增長動力外，我們對分銷庫存的積極管理是過去幾個季度收入波動相對較低的一個關鍵原因，而我們的同行。

Now let me provide you an update on performance of our business units, starting with Power Solutions Group, or PSG.

現在讓我向您介紹我們業務部門的最新業績，從 Power Solutions Group 或 PSG 開始。

Revenue for PSG for the second quarter was $701 million, revenue for the Analog Solutions Group for the second quarter of 2019 was $462 million and revenue for Intelligent Sensing Group was $185 million.

PSG 第二季度收入為 7.01 億美元，Analog Solutions Group 2019 年第二季度收入為 4.62 億美元，Intelligent Sensing Group 收入為 1.85 億美元。

Now I would like to turn the call over to Keith Jackson for additional comments on the business environment.

現在，我想將電話轉給 Keith Jackson，以獲取有關商業環境的更多評論。

Keith?

基思？

Thanks, Bernard.

謝謝，伯納德。

Our execution remains strong despite demand weakness in the overall semiconductor market.

儘管整個半導體市場需求疲軟，我們的執行力依然強勁。

In the second quarter, we delivered strong margin and earning performance despite strong headwinds from geopolitical and macroeconomic factors.

儘管受到地緣政治和宏觀經濟因素的不利影響，第二季度我們仍實現了強勁的利潤率和盈利表現。

While the near-term business conditions are tepid, the foundation of our business, with exposure to a secular megatrends in automotive, industrial and cloud power end markets, remain solid.

雖然近期的商業環境不溫不火，但我們的業務基礎仍然穩固，在汽車、工業和雲計算終端市場長期大趨勢下。

With strong execution discipline, we are well positioned to navigate through the current soft patch in demand.

憑藉強大的執行紀律，我們可以很好地應對當前的需求軟補丁。

Much-anticipated recovery in demand conditions has not materialized yet, but current booking trends point towards stabilization of demand trends.

備受期待的需求狀況復蘇尚未實現，但當前的預訂趨勢表明需求趨勢趨於穩定。

Based on commentary from our distribution partners, it appears that ongoing inventory correction in the distribution channel should be nearly complete by the end of the third quarter or early fourth quarter.

根據我們分銷合作夥伴的評論，分銷渠道中正在進行的庫存調整似乎應該在第三季度末或第四季度初完成。

While we have strong visibility into the distribution channel, geopolitical and macroeconomic factors are difficult to forecast.

雖然我們對分銷渠道有很強的了解，但地緣政治和宏觀經濟因素很難預測。

No matter what direction business conditions take, we are well prepared to respond in an expeditious manner.

無論業務情況如何發展，我們都做好了迅速應對的準備。

Despite the current slowdown in demand, we continue to make prudent investments to strengthen our competitive position and to further improve our industry-leading cost structure.

儘管目前需求放緩，但我們繼續進行審慎投資以加強我們的競爭地位並進一步改善我們行業領先的成本結構。

During the second quarter, we announced the completion of our acquisition of Quantenna Communications, a provider of market-leading connectivity semiconductor solutions for WiFi.

在第二季度，我們宣布完成對市場領先的 WiFi 連接半導體解決方案提供商 Quantenna Communications 的收購。

We believe that connectivity capability is a primary requirement for success in the industrial IoT market.

我們相信連接能力是在工業物聯網市場取得成功的首要要求。

As we have announced earlier, we intend to leverage Quantenna's market-leading connectivity capabilities to gain technological leadership in the connectivity market for industrial IoT.

正如我們之前宣布的那樣，我們打算利用 Quantenna 市場領先的連接能力來獲得工業物聯網連接市場的技術領先地位。

At the same time, we will continue to invest in Quantenna to grow its carrier business.

同時，我們將繼續投資Quantenna，以發展其運營商業務。

Current customer feedback has been very positive, and customers are excited about the benefits of the combined technical, financial and market resources of Quantenna and ON Semiconductor will bring to them.

目前的客戶反饋非常積極，客戶對 Quantenna 和安森美半導體的綜合技術、財務和市場資源將給他們帶來的好處感到興奮。

Integration of Quantenna is on track, and the teams are working on product road maps and on achieving synergies targets.

Quantenna 的整合正在進行中，團隊正在製定產品路線圖並實現協同目標。

Due to ongoing stress -- softness in the semiconductor industry, Quantenna has experienced a slowdown in its businesses as well and is expected to be mildly dilutive in the third quarter.

由於持續的壓力——半導體行業的疲軟，Quantenna 的業務也經歷了放緩，預計第三季度將出現輕微稀釋。

However, as we realize synergies and reduce costs, we expect that Quantenna will deliver targeted accretion.

然而，隨著我們實現協同效應並降低成本，我們預計 Quantenna 將提供有針對性的增長。

We're also making strong process towards ramping our production at 300-millimeter East Fishkill fab in upstate New York.

我們還在紐約州北部 300 毫米的 East Fishkill 晶圓廠加大生產力度。

Process development for porting our power products has started and is progressing at a rapid pace.

移植我們的電源產品的流程開發已經開始並且正在快速推進。

We are solidly on track to start shipping our first 300-millimeter power products from East Fishkill fab in 2020.

我們有望在 2020 年開始從 East Fishkill 晶圓廠發貨我們的首批 300 毫米電源產品。

As we've indicated earlier, our 300-millimeter East Fishkill fab accelerates our progress towards our 2022 target model, enables efficiencies in our manufacturing network and further strengthens our industry-leading cost structure.

正如我們之前所指出的，我們 300 毫米的 East Fishkill 工廠加快了我們實現 2022 年目標模型的進程，提高了我們的製造網絡的效率，並進一步加強了我們行業領先的成本結構。

We believe that the ramp of our 300-millimeter production will be a major inflection point in our manufacturing strategy and in our manufacturing cost structure.

我們相信，我們 300 毫米產量的增加將成為我們製造戰略和製造成本結構的主要轉折點。

Key secular trends driving our business remain intact.

推動我們業務發展的主要長期趨勢保持不變。

Our momentum in our key strategic markets continues to accelerate.

我們在關鍵戰略市場的發展勢頭繼續加快。

We continue to see meaningful increases in our content in automotive, industrial and cloud power applications.

我們繼續看到我們在汽車、工業和雲電源應用方面的內容顯著增加。

We believe that automotive, industrial and cloud power end markets will be among the fastest-growing semiconductor end markets for a long time.

我們相信，汽車、工業和雲能源終端市場將在很長一段時間內成為增長最快的半導體終端市場之一。

In the automotive market, acceleration adoption of electric vehicles and active safety should drive strong growth in our power semiconductor and sensor businesses.

在汽車市場，電動汽車和主動安全的加速採用將推動我們的功率半導體和傳感器業務的強勁增長。

In the industrial market, we are seeing strong traction for our power semiconductors driven by higher power efficiency requirements for industrial systems.

在工業市場中，我們看到我們的功率半導體受到工業系統更高能效要求的強大牽引力。

In the cloud power market, we are seeing robust growth for our analog power management products for servers and power semiconductors for 5G infrastructure markets.

在雲電源市場，我們看到用於服務器的模擬電源管理產品和用於 5G 基礎設施市場的功率半導體的強勁增長。

The current slowdown in demand driven by macroeconomic and geopolitical factors does not change our view on our long-term growth potential.

當前由宏觀經濟和地緣政治因素驅動的需求放緩並未改變我們對長期增長潛力的看法。

Now I'll provide details of the progress in our various end markets for the second quarter of 2019.

現在，我將詳細介紹 2019 年第二季度我們各個終端市場的進展情況。

Revenue for the automotive market in the second quarter was $434 million and represented 32% of our revenue in the second quarter.

第二季度汽車市場的收入為 4.34 億美元，占我們第二季度收入的 32%。

Second quarter automotive revenue declined by 5% year-over-year.

第二季度汽車收入同比下降 5%。

Asia, including Greater China, was the primary contributor to this year-over-year decline.

包括大中華區在內的亞洲是今年同比下降的主要原因。

Weakness in the U.S. and European automotive markets also contributed to this year-over-year decline.

美國和歐洲汽車市場的疲軟也導致了這一同比下降。

On a quarter-over-quarter basis, we saw some stabilization in automotive revenue from Greater China region in the second quarter.

從環比來看，我們看到第二季度大中華地區的汽車收入有所穩定。

We expect that year-over-year decline in China light vehicle production units to moderate in the second half of the current year.

我們預計今年下半年中國輕型汽車產量同比下降將放緩。

On a global basis, we expect that global light vehicle production in terms of units will decline by 3% to 4% year-over-year in 2019.

在全球範圍內，我們預計 2019 年全球輕型汽車產量將同比下降 3% 至 4%。

U.S. and European automotive units will likely decline by 2% to 3% range year-over-year in 2019.

2019 年，美國和歐洲的汽車銷量可能會同比下降 2% 至 3%。

We continue to see a strong adoption of our products in vehicle electrification, active safety and in various analog power management applications, and our content in automotive applications continues to grow.

我們繼續看到我們的產品在汽車電氣化、主動安全和各種模擬電源管理應用中得到廣泛採用，我們在汽車應用中的內容也在不斷增長。

Content in applications such as EV/HEV, LED lighting and in-vehicle network is growing in a meaningful manner.

EV/HEV、LED 照明和車載網絡等應用的內容正在以有意義的方式增長。

We're seeing strong customer interest for our silicon carbide products, and our customer engagement is growing worldwide.

我們看到客戶對我們的碳化矽產品有濃厚的興趣，我們的客戶參與度在全球範圍內不斷增長。

Customer interest in our silicon carbide modules for traction inverters and onboard chargers has been very strong, and we are engaged with many customers for their upcoming EV platforms.

客戶對我們用於牽引逆變器和車載充電器的碳化矽模塊的興趣非常濃厚，我們正在與許多客戶就他們即將推出的電動汽車平台進行接觸。

Demand for our silicon-based power products for vehicle electrification continues to accelerate, and we are seeing strong growth in our power MOSFET business.

對我們用於汽車電氣化的矽基電源產品的需求繼續加速，我們看到我們的功率 MOSFET 業務增長強勁。

In the current quarter, we are starting preproduction of high-voltage IGBT modules to support customer ramps in the fourth quarter and in 2020.

在本季度，我們開始預生產高壓 IGBT 模塊，以支持客戶在 2020 年第四季度和 2020 年的產量增長。

In ADAS applications, momentum for our sensor products continues to grow.

在 ADAS 應用中，我們傳感器產品的發展勢頭持續增長。

We continue to gain traction with our portfolio of automotive image sensor products, and our customers are increasingly relying on us to provide them with complete product suite for automotive applications.

我們的汽車圖像傳感器產品組合繼續受到關注，我們的客戶越來越依賴我們為他們提供完整的汽車應用產品套件。

As I have indicated before, we are the only provider of automotive image sensors with a complete portfolio of 1-megapixel, 2-megapixel, and 8-megapixel image sensor.

正如我之前所指出的，我們是唯一一家擁有完整的 1 兆像素、2 兆像素和 8 兆像素圖像傳感器產品組合的汽車圖像傳感器供應商。

Adoption of rear- and surround-view cameras as well as increased volumes from Level 2 and 3 ADAS and autonomous vehicles systems continue to be a catalyst for growth.

後視和環視攝像頭的採用以及 2 級和 3 級 ADAS 和自動駕駛汽車系統的銷量增加繼續成為增長的催化劑。

We continue to grow our strategic engagements for automotive RADAR products, and we have delivered first evaluation samples to our customers.

我們繼續擴大我們對汽車雷達產品的戰略參與，我們已經向我們的客戶交付了第一批評估樣品。

Our analog power management products for ADAS, instrument clusters as well as in-vehicle networking solutions continue to grow at a healthy rate.

我們用於 ADAS、儀表組以及車載網絡解決方案的模擬電源管理產品繼續以健康的速度增長。

Growth within our advanced lighting, power management and LED drivers solutions continues to be strong globally.

我們先進的照明、電源管理和 LED 驅動器解決方案在全球範圍內繼續保持強勁增長。

Revenue in the third quarter for the automotive end market is expected to be slightly up quarter-over-quarter as opposed to seasonality of sequential decline in revenue.

汽車終端市場第三季度的收入預計將環比小幅增長，而不是收入連續下降的季節性。

The industrial end market, which includes military, aerospace and medical, contributed revenue of $363 million in the second quarter.

包括軍事、航空航天和醫療在內的工業終端市場在第二季度貢獻了 3.63 億美元的收入。

The industrial end market represented 27% of our revenue in the second quarter.

工業終端市場占我們第二季度收入的 27%。

Year-over-year, our second quarter industrial revenue declined by 12%.

與去年同期相比，我們第二季度的工業收入下降了 12%。

Greater China region has been the primary source of weakness in the industrial market but we have recently seen stabilization in business trends.

大中華地區一直是工業市場疲軟的主要原因，但我們最近看到商業趨勢趨於穩定。

We believe that our product offerings for increased power efficiency requirements for the industrial systems will allow us to take advantage of the secular megatrends ahead.

我們相信，我們為工業系統提供更高能效要求的產品將使我們能夠利用未來的長期大趨勢。

We continue to see increased momentum with our mid- and high-voltage power semiconductor products such as FETs and IGBTs and modules in the industrial end market.

我們的中高壓功率半導體產品（例如 FET 和 IGBT 以及模塊）在工業終端市場上的勢頭繼續增強。

We continue to see strength in the China solar market with our power modules and IGBTs, and our breadth of customer engagements in China continues to expand.

憑藉我們的功率模塊和 IGBT，我們繼續看到中國太陽能市場的實力，我們在中國的客戶參與範圍繼續擴大。

Within industrial, we are gaining traction in medical with our Bluetooth low-energy products.

在工業領域，我們正在通過我們的藍牙低功耗產品在醫療領域獲得關注。

Our technology and design expertise is well recognized by our customer base, and we expect strong growth in the future.

我們的技術和設計專長得到了客戶群的認可，我們預計未來將實現強勁增長。

We continue to see strong demand for our products in implantable devices, personal diagnostics and in hearing health markets.

我們繼續看到可植入設備、個人診斷和聽力健康市場對我們產品的強勁需求。

Revenue in the third quarter for the industrial end market is expected to be down quarter-over-quarter due to normal seasonality and ongoing softness in the industrial end market.

由於正常的季節性和工業終端市場的持續疲軟，預計工業終端市場第三季度的收入將環比下降。

The communications end market, which includes both networking and wireless, contributed revenue of $248 million in the second quarter.

包括網絡和無線在內的通信終端市場在第二季度貢獻了 2.48 億美元的收入。

The communications end market represented 18% of our revenue in the second quarter.

通信終端市場占我們第二季度收入的 18%。

Second quarter communications revenue increased by 7% year-over-year.

第二季度通信收入同比增長 7%。

Much of the year-over-year increase was driven by strength in the 5G ramp.

同比增長的大部分是由 5G 增長的力量推動的。

Smartphone-related revenue in the second quarter was also up year-over-year.

第二季度與智能手機相關的收入也同比增長。

We did not have meaningful revenue from Quantenna in the second quarter as the acquisition closed on June 19.

由於收購於 6 月 19 日結束，我們在第二季度沒有從 Quantenna 獲得有意義的收入。

As noted earlier, our 5G-related revenue in the second quarter was disrupted as we halted shipments to a major customer in accordance with U.S. federal law.

如前所述，我們在第二季度與 5G 相關的收入受到干擾，因為我們根據美國聯邦法律停止向主要客戶發貨。

We have now resumed partial shipments to this customer in accordance with U.S. law.

根據美國法律，我們現已恢復向該客戶部分發貨。

Despite near-term uncertainty, current engagement with our customers points to meaningful deployment rates for 5G systems in the near to midterm.

儘管近期存在不確定性，但目前與我們客戶的合作表明 5G 系統在近期至中期的部署率是有意義的。

On the smartphone front, our revenue grew year-over-year.

在智能手機方面，我們的收入同比增長。

We expect to see increase in our content in new platforms slated for launch later this year.

我們預計在今年晚些時候推出的新平台中我們的內容將會增加。

Revenue in the third quarter for the communications end market is expected to be up quarter-over-quarter due to launch of new smartphone platforms and inclusion of Quantenna's results for a full quarter.

由於新智能手機平台的推出以及 Quantenna 整個季度的業績，預計第三季度通信終端市場的收入將環比增長。

The computing end market contributed revenue of $139 million in the second quarter.

計算終端市場在第二季度貢獻了 1.39 億美元的收入。

The computing end market represented 10% of our revenue in the second quarter.

計算終端市場占我們第二季度收入的 10%。

Second quarter computing revenue declined by 7% year-over-year.

第二季度計算收入同比下降 7%。

However, our server business posted very solid growth on a year-over-year basis during the second quarter.

但是，我們的服務器業務在第二季度實現了非常穩健的同比增長。

We are seeing a temporary pause in our servers business in the current quarter as customers adjust their inventory levels.

隨著客戶調整庫存水平，我們看到本季度的服務器業務暫時停頓。

In future generations of server platforms, we expect meaningful increase in our content.

在未來幾代服務器平台中，我們期望我們的內容顯著增加。

Revenue in the third quarter for computing end market is expected to be down quarter-over-quarter due to a decline in our client and server businesses.

由於我們的客戶端和服務器業務下滑，計算終端市場第三季度的收入預計將環比下降。

The consumer end market contributed revenue of $164 million in the second quarter.

消費者終端市場在第二季度貢獻了 1.64 億美元的收入。

The consumer end market represented 12% of our revenue in the second quarter.

消費者終端市場占我們第二季度收入的 12%。

Second quarter consumer revenue declined by 21% year-over-year.

第二季度消費者收入同比下降 21%。

The year-over-year decline was due to continuing broad-based weakness in consumer electronics and white goods markets and our selective participation in these markets.

同比下降是由於消費電子和白色家電市場持續普遍疲軟以及我們選擇性地參與這些市場。

Revenue in the third quarter for the consumer end market is expected to be down quarter-over-quarter.

消費者終端市場第三季度的收入預計將環比下降。

In summary, thus far in the current downturn, cyclicality in our revenue and margins has been lower than that of our peer group.

總之，到目前為止，在當前的低迷時期，我們的收入和利潤率的周期性一直低於我們的同行。

Our performance speaks to the transformed nature of our business and our focus in highly differentiated power, analog, sensor and connectivity products for the automotive, industrial and cloud power end markets.

我們的業績體現了我們業務轉型的本質，以及我們專注於汽車、工業和雲電源終端市場的高度差異化電源、模擬、傳感器和連接產品。

We are seeing stabilization in business trends in our key markets.

我們看到主要市場的業務趨勢趨於穩定。

However, demand continues to be sub-seasonal as macroeconomic and geopolitical factors continue to weigh on in demand.

然而，由於宏觀經濟和地緣政治因素繼續對需求構成壓力，需求仍然是次季節性的。

We believe that ongoing distribution inventory correction should be nearly complete by the end of the third quarter or early fourth quarter 2019.

我們認為，持續的分銷庫存調整應在 2019 年第三季度末或第四季度初接近完成。

Despite current weakness in the business trends across the industry, secular megatrends driving our business remain intact and we are upbeat about our medium- to long-term prospects.

儘管當前整個行業的業務趨勢疲軟，但推動我們業務的長期大趨勢保持不變，我們對我們的中長期前景持樂觀態度。

We are focused on the fastest-growing end-markets of the semiconductor industry.

我們專注於半導體行業增長最快的終端市場。

And with our design wins, we expect that our content in automotive, industrial and cloud power applications will continue to grow.

隨著我們的設計獲勝，我們預計我們在汽車、工業和雲電源應用中的內容將繼續增長。

To adjust to slowing macroeconomic environment, we are currently are prudently managing our business with sharp focus on controlling expenses.

為了適應放緩的宏觀經濟環境，我們目前正在審慎管理我們的業務，並將重點放在控制費用上。

Our operational execution remains solid.

我們的運營執行依然穩健。

Now I'd like to turn it back over to Bernard for forward-looking guidance.

現在我想把它交還給伯納德以獲得前瞻性指導。

Bernard?

伯納德?

Thank you, Keith.

謝謝你，基思。

Based on product booking trends, backlog levels and estimated turn levels, we anticipate that total ON Semiconductor revenue is expected to be in the range of $1.355 billion to $1.405 billion in the third quarter of 2019.

根據產品預訂趨勢、積壓水平和估計的周轉水平，我們預計安森美半導體的總收入在 2019 年第三季度將在 13.55 億美元至 14.05 億美元之間。

For the third quarter of 2019, we expect GAAP gross margin to be in the range of 35.2% to 36.2%, and non-GAAP gross margin to be in the range of 36.7% to 37.7%.

對於 2019 年第三季度，我們預計 GAAP 毛利率將在 35.2% 至 36.2% 之間，非 GAAP 毛利率將在 36.7% 至 37.7% 之間。

We expect total GAAP operating expenses of $349 million to $369 million.

我們預計 GAAP 總運營費用為 3.49 億美元至 3.69 億美元。

Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be $34 million to $38 million.

我們的 GAAP 運營費用包括無形資產攤銷、重組、資產減值和其他費用，預計為 3400 萬至 3800 萬美元。

We expect total non-GAAP operating expenses of $315 million to $331 million in the third quarter.

我們預計第三季度非美國通用會計準則運營費用總額為 3.15 億美元至 3.31 億美元。

The quarter-to-quarter increase in operating expenses for the third quarter over those of the second quarter is driven primarily by the inclusion of Quantenna's results for the full quarter, process transfer costs related to the 300-millimeter fab at East Fishkill, annual merit increase and the absence of bonus reversal, which significantly lowered second quarter operating expenses.

與第二季度相比，第三季度運營費用環比增長的主要原因包括 Quantenna 整個季度的業績、與 East Fishkill 的 300 毫米晶圓廠相關的工藝轉移成本、年度業績增加和沒有紅利逆轉，這顯著降低了第二季度的運營費用。

We expect to see a meaningful decrease in Quantenna-related operating expenses as we realize target synergies and reduce costs.

隨著我們實現目標協同效應並降低成本，我們預計與 Quantenna 相關的運營費用將顯著下降。

Offsetting increase in third quarter operating expenses are savings resulting from tight operating expense controls.

抵消第三季度運營費用的增加是由於嚴格的運營費用控制所帶來的節省。

We anticipate third quarter of 2019 GAAP net other income and expense, including interest expense, will be $38 million to $41 million, which includes noncash interest of $9 million to $10 million.

我們預計 2019 年第三季度 GAAP 的其他淨收入和支出（包括利息支出）將為 3800 萬美元至 4100 萬美元，其中包括 900 萬美元至 1000 萬美元的非現金利息。

We anticipate our non-GAAP net other income and expense, and including interest expense, will be $29 million to $31 million.

我們預計我們的非公認會計原則淨其他收入和支出，包括利息支出，將為 2900 萬美元至 3100 萬美元。

Net cash paid for income taxes in the third quarter of 2019 is expected to be $11 million to $15 million.

2019 年第三季度為所得稅支付的淨現金預計為 1100 萬至 1500 萬美元。

We expect total capital expenditure of $125 million to $135 million in the third quarter of 2019.

我們預計 2019 年第三季度的總資本支出為 1.25 億美元至 1.35 億美元。

We also expect share-based compensation of $21 million to $23 million in the third quarter of 2019, of which approximately $2 million is expected to be in cost of goods sold and the remaining amount is expected to be in operating expenses.

我們還預計 2019 年第三季度的股票薪酬為 2100 萬美元至 2300 萬美元，其中約 200 萬美元預計為銷售成本，其餘部分預計為運營費用。

This expense is included in our non-GAAP financial measures.

這筆費用包含在我們的非公認會計原則財務措施中。

Our diluted share count for the third quarter of 2019 is expected to be 414 million shares based on the current stock price.

根據當前股價，我們 2019 年第三季度的稀釋後股票數量預計為 4.14 億股。

Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on Form 10-Q and Form 10-K.

我們的 10-Q 表格和 10-K 表格的季度和年度報告定期提供有關股票數量和每股收益計算的更多詳細信息。

With that, I would like to start the Q&A session.

有了這個，我想開始問答環節。

Thank you.

謝謝你。

And Chris, please open up the lines for questions.

克里斯，請打開問題的線路。

(Operator Instructions) And our first question comes from the line of Ross Seymore with Deutsche Bank.

（操作員說明）我們的第一個問題來自德意志銀行的 Ross Seymore。

As for my first one, one for Keith.

至於我的第一個，一個給基思的。

I know you guys are guiding to basically the same sort of sub-seasonality by about 5 points as everybody else, but last quarter you talked about an improvement in bookings that gave you confidence in the back half.

我知道你們和其他人一樣將基本相同的亞季節性引導到大約 5 分，但上個季度你談到了預訂的改善，這讓你對後半場充滿信心。

Now you're talking more about a stabilization and you think the inventory correction is going to be done at the end of this quarter or next.

現在您更多地談論的是穩定，您認為庫存修正將在本季度末或下一個季度完成。

I guess what changed quarter-over-quarter?

我猜是什麼改變了季度環比？

Is it just the obvious trade war tensions rising?

僅僅是明顯的貿易戰緊張局勢升級嗎？

And what gives you the confidence that the projection this time is something that you're willing to make after last time proving too optimistic?

是什麼讓你相信這次的預測是你在上次證明過於樂觀之後願意做出的事情？

Yes.

是的。

I think without question, 2 things happened during the second quarter.

我認為毫無疑問，第二季度發生了兩件事。

The geopolitical piece was much more pronounced than anticipated.

地緣政治的影響比預期的要明顯得多。

And as the quarter went on, as you are aware, those impacts got more significant.

如您所知，隨著季度的推進，這些影響變得更加顯著。

The second piece is we did see more inventory correction going on than we had anticipated based on backlog trends going into the quarter at some of the OEM sides as well.

第二部分是我們確實看到了比我們預期的更多的庫存修正，基於一些 OEM 方面進入本季度的積壓趨勢。

So the combination weakened during the quarter, and I think that's what led to the results we had.

因此，該組合在本季度減弱了，我認為這就是導致我們取得結果的原因。

As we look forward in dialogue with the customers and looking at what's going on geopolitically, things have been stabilizing more.

當我們期待與客戶進行對話並觀察地緣政治上正在發生的事情時，事情變得更加穩定。

Certainly, the biggest impact from U.S. sanctions, we believe, we comprehend at this stage, which we did not have going into the second quarter.

當然，我們相信，美國製裁的最大影響是我們現階段理解的，而我們沒有進入第二季度。

And so we've got more confidence in what I would call stabilization at this point.

所以我們現在對我所說的穩定更有信心。

That's great.

那太棒了。

And as to my follow-up question, one for Bernard on gross margin and inventory.

至於我的後續問題，一個關於毛利率和庫存的問題。

I know you talked about bringing inventory down in the third quarter.

我知道您談到在第三季度降低庫存。

Can you talk a little bit about what that's doing to your gross margin in the near term?

你能談談短期內這對你的毛利率有什麼影響嗎？

And now that we have the GLOBALFOUNDRIES acquisition, the 300-millimeter fab as well as the Quantenna acquisition, talk about the path to the low-40s gross margin target.

現在我們已經收購了 GLOBALFOUNDRIES、300 毫米晶圓廠以及收購 Quantenna，談談實現低 40 年代毛利率目標的途徑。

Does that get expedited?

這會加速嗎？

Any sort of updates on the steps we should follow over the next year or so towards that 43% target you laid out at your analyst meeting?

關於我們應該在明年左右為實現您在分析師會議上製定的 43% 目標而採取的步驟的任何更新？

Sure, Ross.

當然，羅斯。

Thank you.

謝謝你。

So inventory correction in the third quarter -- internal inventory correction is expected to occur but on a mild basis.

因此，第三季度的庫存修正——預計內部庫存修正將發生，但幅度較小。

We don't expect that, that will have a significant impact on our gross margin.

我們預計這不會對我們的毛利率產生重大影響。

And as you can, see our guidance for overall gross margin is slightly better sequentially than Q2.

如您所見，我們對整體毛利率的指導比第二季度略好。

Definitely, the -- both the acquisitions that we announced this quarter of Quantenna and of the phased approach for East Fishkill should be tailwinds that will help us achieve our gross margin targets for 2023.

毫無疑問，我們本季度宣布的 Quantenna 收購和 East Fishkill 的分階段收購都應該是順風，這將有助於我們實現 2023 年的毛利率目標。

So we feel pretty good about those.

所以我們對這些感覺很好。

And we'll continue with our normal 50% fall through on incremental revenue.

我們將繼續正常下降 50% 的增量收入。

And in the short term, this been a little bit of a headwind, but we expect that as the inventory correction in the secular drivers take course, we expect that will continue also being a significant help.

在短期內，這有點逆風，但我們預計，隨著長期驅動因素的庫存調整逐步進行，我們預計這也將繼續提供重大幫助。

And our next question comes from the line of Chris Danely with Citigroup.

我們的下一個問題來自花旗集團的 Chris Danely。

I guess one more question on macro.

我想還有一個關於宏的問題。

At least according to Twitter, we've got another $300 billion in tariffs coming down the pike here in the next month.

至少根據 Twitter 的說法，我們將在下個月再徵收 3000 億美元的關稅。

How do you think that impacts you guys?

你覺得這對你們有什麼影響？

And did your guidance change after the update came?

更新後您的指導是否發生了變化？

Or do you think that, that could be a little bit of downside out there?

或者你認為這可能是一個小缺點嗎？

We saw the tweets as well and the reactions to it.

我們也看到了推文以及對它的反應。

I think our belief is that this is comprehended in the guidance that we've given.

我認為我們的信念是，這已包含在我們提供的指導中。

They are tariffs and the tariffs themselves have not been the issue for our revenues so far.

它們是關稅，到目前為止，關稅本身還不是我們收入的問題。

What we expect to see is potentially some market share changes from our customers as a result of this.

我們期望看到的是，我們的客戶可能會因此而改變一些市場份額。

But the overall end markets, I would not expect significant destabilization.

但整體終端市場，我預計不會出現重大動盪。

Okay.

好的。

Great.

偉大的。

And then for my follow-up, just to drill down on a couple of Ross' questions.

然後我的後續行動，只是為了深入研究羅斯的幾個問題。

So on inventory, what's the -- I guess, the goal for your internal inventories and when do you think would get there?

那麼關於庫存，我猜，你的內部庫存目標是什麼？你認為什麼時候可以達到目標？

And then on OpEx, can we expect OpEx to drift down on a dollars basis for the next couple of quarters as you guys start to squeeze some synergies?

然後在運營支出方面，隨著你們開始擠壓一些協同效應，我們能否期望運營支出在接下來的幾個季度中以美元為基礎下降？

Let me answer them in reverse.

讓我反過來回答他們。

The OpEx, we expect those to stabilize and then in 2020 comes down as we get the benefits of the synergies that we talked about for Quantenna, which we talked about being $26 million, about $16 million of those in OpEx and about $10 million in COGS.

運營支出，我們預計這些將穩定下來，然後在 2020 年下降，因為我們得到了我們談到的 Quantenna 協同效應的好處，我們談到了 2600 萬美元，其中運營支出約為 1600 萬美元，銷貨成本約為 1000 萬美元.

The inventory goal in the midterm, I expect those to come down to about 120 days.

中期的庫存目標，我預計會降到 120 天左右。

And right now we are at 132 when you pro forma that out for Quantenna's full -- like a full quarter.

現在我們在 132 歲，當你為 Quantenna 的全部準備時 - 就像一個完整的季度。

And our next question comes from the line Vijay Rakesh with Mizuho.

我們的下一個問題來自瑞穗的 Vijay Rakesh。

Just a couple of questions.

只是幾個問題。

On the -- when we look on the China side, just wondering what your content is on the -- on autos in general in China now and how do you see the EV market going into next year.

關於 - 當我們看中國方面時，只是想知道你的內容是什麼 - 現在中國一般的汽車以及你如何看待明年的電動汽車市場。

On EV, we expect continued growth despite the macroeconomic conditions and number of cars sold globally.

在電動汽車方面，儘管宏觀經濟狀況和全球汽車銷量，我們預計將繼續增長。

We expect that percentage will continue to rise and it will be led in China.

我們預計這一比例將繼續上升，並將在中國處於領先地位。

So we would be expecting some recovery there in China for automotives on that basis.

因此，在此基礎上，我們預計中國的汽車會出現一些復甦。

Globally though, we're not looking for a large pickup in total units of cars sold.

不過，在全球範圍內，我們並不希望汽車總銷量大幅增加。

And in terms of content in the...

而就內容而言...

From a content perspective, for the electric vehicles, it's up to about $400 per battery car.

從內容上看，對於電動汽車來說，每輛電瓶車最高可達 400 美元左右。

And then if you move to a Level 2 ADAS systems, you get another $150 per car from a year-on-year basis.

然後，如果您遷移到 2 級 ADAS 系統，每輛汽車每年可再獲得 150 美元。

So pretty significant content changes.

所以非常重要的內容變化。

Got it.

知道了。

And I don't know if you've talked about content as contribution in the September quarter, and I assume that is again well above your corporate rate, right?

而且我不知道您是否在 9 月季度將內容視為貢獻，我認為這再次遠高於您的公司費率，對嗎？

So in Quantenna, we are not disclosing the details.

所以在 Quantenna，我們沒有透露細節。

We normally don't disclose customers or individual sub-end markets.

我們通常不披露客戶或個別子終端市場。

It will be integrated within our ASG group.

它將被整合到我們的 ASG 集團中。

And we believe we are on track with the synergy and the integration plans.

我們相信我們正在推進協同效應和整合計劃。

And as we mentioned in the call, the market for WiFi has also suffered the same weaknesses on a macroeconomic and inventory corrections, and therefore we talked about being mildly diluted in the third quarter but on plan with the long-term plans.

正如我們在電話會議中提到的那樣，WiFi 市場在宏觀經濟和庫存調整方面也遭受了同樣的弱點，因此我們談到在第三季度被輕度稀釋，但在長期計劃中是按計劃進行的。

And our next question comes from the line of Vivek Arya with Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Vivek Arya。

I'm curious how you're managing utilization in Q3 and what will help growth margins recover from here.

我很好奇您如何管理第三季度的利用率，以及什麼將有助於從這裡恢復增長利潤率。

Will it be an improvement in mix?

混音會有所改善嗎？

Are there any other operational things that you are putting in place?

您還有其他操作性的東西嗎？

It was good to see gross margin kind of hold in there in Q2, but I'm just wondering what other drivers from here on to your longer-term goals.

很高興看到第二季度的毛利率保持不變，但我只是想知道從這裡到您的長期目標還有哪些其他驅動因素。

The same ones that we have elaborated in the Analyst Day for the long term: the mixed effect, the fall through in the incremental revenue, manufacturing cost savings, some divestitures in small scale.

與我們在分析師日長期闡述的相同：混合效應、增量收入下降、製造成本節約、一些小規模資產剝離。

And we also talked about the 2 different -- the 2 acquisitions we just closed in this quarter, Quantenna should be accretive to gross margin and so should the East Fishkill acquisition.

我們還談到了兩個不同的 - 我們在本季度剛剛完成的 2 次收購，Quantenna 應該會增加毛利率，East Fishkill 收購也應該如此。

In the short term, we also take normal tactical cost reductions, more insourcing and tighten the belt just on discretionary spend even at the COGS level, and that should also help us shore up the numbers in the short term.

在短期內，我們還會採取正常的戰術性成本削減，更多的內購，並在可自由支配的支出上收緊腰帶，即使是在 COGS 水平上，這也應該有助於我們在短期內支撐數字。

Okay.

好的。

And then on the computing business for Q3, I believe, Keith, you mentioned it could be down.

然後是第三季度的計算業務，我相信，Keith，你提到它可能會下降。

I'm trying to reconcile back with stabilization in the PC market and just the growth, because a new CPU is coming out in Q3.

我正試圖與 PC 市場的穩定和增長相協調，因為新的 CPU 將在第三季度問世。

Could you give us a sense for where you're seeing the headwinds?

你能告訴我們你在哪裡看到逆風嗎？

Is it more on the unit side?

更多的是在單位方面嗎？

Is it more on the content side in your computing business?

在您的計算業務中更多的是內容方面嗎？

Yes.

是的。

It is definitely related to units and definitely has some of the macroeconomic impacts.

它肯定與單位有關，肯定會產生一些宏觀經濟影響。

One of the things we do believe is that the Q2 numbers had some significant amounts of ship-aheads over the concern with tariffs being imposed and increased.

我們確實相信的一件事是，由於擔心徵收和增加關稅，第二季度的數字有一些顯著的提前出貨。

And our next question comes from the line of Anthony Stoss with Craig-Hallum.

我們的下一個問題來自 Anthony Stoss 和 Craig-Hallum。

Most of my questions were asked, but maybe you can provide more color on the size or expected size of the silicon carbide business in '19 and where you see it grow for 2020?

我的大部分問題都被問到了，但也許你可以提供更多關於 19 年碳化矽業務的規模或預期規模以及你認為它在 2020 年增長的情況？

And also just to be clear, your comments related to Huawei that you have more visibility, does that include your ability to ship to the comm side?

還要明確一點，您對華為的評論說您有更多的知名度，這是否包括您向通信方發貨的能力？

Taking the last one first.

先拿最後一個。

I think we do have more visibility in our ability to ship into the comms piece of that.

我認為我們確實有更多的可見性，我們可以將其發送到通信部分。

Clearly, there's still impact on the 5G portion, but the handset business seems to be an area that can be shipped.

顯然，5G 部分仍有影響，但手機業務似乎是一個可以出貨的領域。

So more clarity on Huawei at this stage.

因此，現階段對華為更加清晰。

And Of course, we are applying for further exemptions as you would expect.

當然，正如您所料，我們正在申請進一步的豁免。

From -- for the silicon carbide perspective, we do see that continuing to grow at an extremely rapid pace.

從 - 從碳化矽的角度來看，我們確實看到它繼續以極快的速度增長。

We're not expecting '19 to be in the hundreds of millions of dollars, but certainly toward the triple-digit millions.

我們預計 19 年不會達到數億美元，但肯定會達到三位數。

And our next question comes from the line of Matt Ramsay with Cowen.

我們的下一個問題來自 Matt Ramsay 和 Cowen 的對話。

Yourselves and other companies, obviously with the automotive challenges in the industry, have given a little bit color specifically on the market in China.

您自己和其他公司，顯然面臨著汽車行業的挑戰，已經在中國市場上專門賦予了一點色彩。

I wonder if you guys might sort of remind us what percentage of your automotive business is China consumed today roughly.

我想知道你們是否可以提醒我們今天中國消費的汽車業務的比例大概是多少。

And just how that business might be trending differently than some of the business in automotive outside of China?

該業務的發展趨勢與中國以外的一些汽車業務有何不同？

Well, trend-wise, actually I mentioned that we've seen stabilization.

好吧，從趨勢來看，實際上我提到我們已經看到了穩定。

That market took a pretty steep double-digit drop on a year-on-year basis globally and so that's a very significant and most significant action on a worldwide automotive basis.

該市場在全球範圍內同比下降了兩位數，因此這是全球汽車領域非常重要和最重要的行動。

We think that China overall, when you look at the numbers, contributes around 25%-or-so total automotive.

我們認為，從數據來看，中國總體貢獻了大約 25% 左右的汽車總量。

That is an estimate because clearly we ship things to other parts of the world that are still being imported in China.

這是一個估計，因為很明顯，我們將貨物運往世界其他地區，而這些貨物仍在中國進口。

But roughly a quarter.

但大約四分之一。

Got it.

知道了。

And as a follow-up from us, you had mentioned, Keith, in your commentary that customer feedback around the Quantenna deal was quite strong.

作為我們的後續行動，Keith 在您的評論中提到，客戶對 Quantenna 交易的反饋非常強烈。

I wonder if you might elaborate on that and what particular verticals or what type of customer engagement there have been and discussions since you closed the deal that might shed a light on where you're going with that technology stack.

我想知道您是否可以詳細說明這一點，以及自您完成交易以來存在哪些特定垂直領域或客戶參與類型以及討論，這可能會闡明您將使用該技術堆棧走向何方。

Yes.

是的。

So their existing customer base, as you're aware, basically is the ones that we would -- have been referencing there.

因此，正如您所知，他們現有的客戶群基本上是我們會 - 一直在那裡引用的客戶群。

They're looking at, I guess, more assured supply, having a stronger financial backing there.

我猜他們正在尋找更可靠的供應，在那裡擁有更強大的財務支持。

From the span-out piece, we've been talking to industrial IoT customers about our plans to expand offerings into that portion of the business.

從擴展部分開始，我們一直在與工業物聯網客戶討論我們將產品擴展到該業務部分的計劃。

And they've also been quite excited by taking some high-performance solutions and combining it with the rest of our IoT solutions.

他們也對採用一些高性能解決方案並將其與我們的其他物聯網解決方案相結合感到非常興奮。

And our next question comes from the line of Ambrish Srivastava with BMO.

我們的下一個問題來自 BMO 的 Ambrish Srivastava。

This is Jamison calling in for Ambrish.

這是賈米森在召喚安布里什。

So first, I was wondering if you guys could comment on your lead times in power.

所以首先，我想知道你們是否可以評論你們的執政時間。

Where are they now versus the peak?

他們現在與高峰相比在哪裡？

And also what are they doing compared to normal levels?

與正常水平相比，他們在做什麼？

Our lead times still continue to be kind of mid-teens.

我們的交貨時間仍然在十幾歲左右。

This is down definitely from year-ago levels by 4 or 5 weeks and slightly longer than what we would call normal for the industry as there are still some constraints in our power business?

這肯定比一年前的水平下降了 4 或 5 週，並且比我們所說的行業正常水平略長，因為我們的電力業務仍然存在一些限制？

Okay.

好的。

Great.

偉大的。

And then my follow-up is regarding your East Fishkill fab.

然後我的後續行動是關於你的東菲什基爾工廠。

I was wondering with the lower demand that you guys are seeing, does this affect any ramp of any sort there?

我想知道你們看到的需求較低，這會影響那裡的任何坡道嗎？

Do you plan on, I guess, pulling things in or pushing things out given the increased supply that you'll have from there?

我猜，考慮到你從那裡獲得的供應增加，你打算把東西拉進去還是把東西推出去？

No, it doesn't change any of our expectations there.

不，它不會改變我們在那裡的任何期望。

We're still moving full steam ahead.

我們仍在全力以赴。

As I mentioned earlier on the EV trends, the automotive trends and the 5G trends, we're expecting significant and continued growth in those power businesses next year, so there's no changes anticipated there.

正如我之前提到的電動汽車趨勢、汽車趨勢和 5G 趨勢，我們預計明年這些電力業務將出現顯著且持續的增長，因此預計不會有任何變化。

And our next question comes from the line of Mark Delaney with Goldman Sachs.

我們的下一個問題來自高盛的馬克德萊尼。

The first question is related to pricing.

第一個問題與定價有關。

In prior calls, I think you commented...

在之前的電話中，我想你評論了......

On pricing in general terms we still are seeing a pretty benign environment as compared to what we have seen in previous years.

總體而言，與前幾年相比，我們仍然看到一個相當良性的環境。

So no real change from that.

所以沒有真正的改變。

And our next question comes from the line of Tristan Gerra with Baird.

我們的下一個問題來自 Tristan Gerra 和 Baird。

In terms of the Quantenna being impacted by the macro trend, was there also any company-specific event, such as any share loss, that would have impacted revenue for Quantenna versus your prior expectation?

就 Quantenna 受到宏觀趨勢的影響而言，是否還有任何公司特定的事件，例如任何股份損失，會影響 Quantenna 的收入，而不是您之前的預期？

And also, if you could quantify perhaps the EPS dilution that you expect from Quantenna in the quarter?

而且，如果您可以量化您對 Quantenna 在本季度的預期每股收益稀釋？

So as I mentioned, we did visit all of Quantenna's customers since the acquisition.

正如我所提到的，自收購以來，我們確實拜訪了 Quantenna 的所有客戶。

And without exception, they have all cited softness in their business and no share loss of any kind.

無一例外，他們都提到了他們的業務疲軟，沒有任何形式的份額損失。

Great.

偉大的。

And -- yes.

是的。

I was going to say on the earnings per share, like we said, there's not meaningful contribution in quarter 3.

我要說的是每股收益，就像我們說的那樣，第三季度沒有有意義的貢獻。

Okay.

好的。

Great.

偉大的。

And then could you comment on your utilization rates that's embedded in your Q3 guidance?

然後您能否評論您的第三季度指南中包含的利用率？

Yes.

是的。

They are low-70s.

他們是 70 多歲的人。

It should be very similar to Q2.

它應該與 Q2 非常相似。

And our next question comes from the line of Christopher Rolland with SIG.

我們的下一個問題來自 SIG 的 Christopher Rolland。

In your opinion and in comparison to others, why do you think it took so much longer for your adjustees to start making these adjustment -- inventory adjustments here?

在您看來，與其他人相比，您認為為什麼您的調整對像開始進行這些調整需要更長的時間——這裡的庫存調整？

Was it -- do you think it was in the long lead times that you guys had?

是不是——你認為你們的交貨時間很長嗎？

Or are there some more market-specific issues or end product-specific issues that you guys have that others don't?

還是你們有其他人沒有的更多特定於市場的問題或特定於最終產品的問題？

I do believe mix is a contributor to the behaviors there.

我確實相信混合是那裡行為的一個貢獻者。

Companies with more power content have seen less of the corrections and seen it later.

擁有更多權力內容的公司看到的修正較少，後來才看到。

Understood.

明白了。

And maybe you guys can talk about cycle times.

也許你們可以談談週期時間。

And if you expect lead times to approach cycle times, is that something you're contemplating in this down-cycle or not?

如果您預計交貨時間會接近週期時間，那麼您在這個下行週期中是否正在考慮這一點？

On a product basis, you certainly have seen a narrowing of the gap between manufacturing cycle times and lead times.

在產品基礎上，您肯定已經看到製造週期時間和交貨時間之間的差距正在縮小。

They're not -- don't normally collapse inside our manufacturing lead times in good markets or bad.

它們不是——通常不會在我們的製造交貨時間內崩潰，無論市場好壞。

And our next question comes from the line of Craig Ellis with B. Riley FBR.

我們的下一個問題來自 Craig Ellis 和 B. Riley FBR。

I wanted to pose a couple of intermediate-term questions on a few of the end markets.

我想就一些終端市場提出幾個中期問題。

Keith, as you look at automotive, nice to see it growing in the third quarter.

基思，當你看汽車時，很高興看到它在第三季度增長。

Do you sense that the underlying dynamics in that business, content gain, rising EV caution, et cetera, mean that this is an inflection quarter where we could be back to sustained growth?

您是否感覺到該業務的潛在動態、內容收益、對電動汽車的謹慎態度上升等等，是否意味著這是一個拐點，我們可以恢復持續增長？

Or are there some headwinds coming in the fourth quarter that would mean it's more bouncing along the bottom?

還是第四季度會出現一些不利因素，這意味著它會在底部反彈？

In terms of units sold, we don't see a significant improvement in the fourth quarter globally.

就售出的單位而言，我們認為全球第四季度沒有顯著改善。

We're not looking for that.

我們不是在尋找那個。

We do think that the number of models adopting EV and the number of models adopting Level 2 ADAS will be increasing for the 2020 car model years.

我們確實認為，在 2020 年車型年，採用 EV 的車型數量和採用 Level 2 ADAS 的車型數量將會增加。

And so we should see that offset even flat or slightly down in Q4 total unit numbers.

因此，我們應該看到第四季度總單位數量的抵消甚至持平或略有下降。

So we are expecting a return to growth as you exit this year.

因此，隨著您今年退出，我們預計將恢復增長。

That's helpful.

這很有幫助。

And then the follow-up is on cloud power.

然後是雲計算的後續。

So it sounds like the base station business is getting some strong traction.

所以聽起來基站業務正在獲得一些強大的牽引力。

Server isn't helping just because of ship-aheads.

服務器並不僅僅因為提前發貨而提供幫助。

The first part of the question is when do you think those will both be working in your favor?

問題的第一部分是你認為這兩者什麼時候會對你有利？

And on base stations specifically, as you interact with our customers, what are the unit numbers for base station builds that they're talking about for this year and next year?

特別是在基站方面，當您與我們的客戶互動時，他們談論的今年和明年的基站構建單元數是多少？

Yes.

是的。

When we talk growth, we're over 60% growth year-on-year in those cloud power and -- applications.

當我們談到增長時，我們在這些雲計算能力和應用程序方面的年增長率超過 60%。

And so yes, very, very significant growth.

所以是的，非常非常顯著的增長。

We don't actually have any units I can give you specifically in the forecast, however.

然而，我們實際上沒有任何單位可以在預測中專門給你。

And timing on when server can help cloud power?

以及何時服務器可以幫助雲計算？

I'm expecting that to be certainly as we enter 2020.

我預計在我們進入 2020 年時肯定會如此。

And our next question comes from the line of Raji Gill with Needham & Company.

我們的下一個問題來自Needham & Company 的Raji Gill。

A question on automotive.

關於汽車的問題。

If we assume auto continues to grow in Q4, it looks like the segment would be down about less than 2%.

如果我們假設汽車在第四季度繼續增長，那麼該細分市場的跌幅似乎不到 2%。

I think you had indicated that overall light vehicle production is going to decline 3% to 4%.

我認為您曾表示輕型汽車的整體產量將下降 3% 至 4%。

So I just wanted to get a sense, is that kind of roughly what you're expecting?

所以我只是想了解一下，這與您的預期大致相同嗎？

And how does that, I guess, reconcile with dollar content gains in power and ADAS?

我猜，這如何與功率和 ADAS 中的美元內容收益相協調？

If it is the case, there'll be a slight improvement over the unit decline, not as great.

如果是這種情況，那麼單位下降會有輕微的改善，而不是那麼大。

So just I would like to get some color on that.

所以我只是想在上面加點顏色。

Yes.

是的。

So again, I think it really is the ON content story there, not the units.

再說一次，我認為這確實是那裡的內容故事，而不是單位。

The other piece of what you've seen so far this year is inventory correction at the suppliers to the automobile industry.

今年到目前為止，您看到的另一件事是汽車行業供應商的庫存調整。

So the units themselves can be down 2%, 3% or whatever, but the inventory piece or the import reduction piece contributes the rest.

因此，單位本身可能下降 2%、3% 或其他，但庫存部分或進口減少部分貢獻了其餘部分。

And as I mentioned before, I do expect, as we get into Q4, the additional content story will take over and you'll see continued growth for us.

正如我之前提到的，我確實預計，隨著我們進入第四季度，額外的內容故事將會接管，你會看到我們的持續增長。

Okay.

好的。

That's helpful.

這很有幫助。

For my follow-up question, you talked about booking trends pointing towards stabilization.

對於我的後續問題，您談到了指向穩定的預訂趨勢。

Is this mainly based on your distributors, your customers in China who basically said we've finished the inventory correction and we're going to at least kind of rebuild slowly?

這主要是基於你們的經銷商，你們在中國的客戶，他們基本上說我們已經完成了庫存調整，我們至少會慢慢重建？

Or just kind of characterize what's driving the stabilization in bookings.

或者只是描述推動預訂穩定的因素。

Is it just purely what we've done with the inventory correction and we're kind of going to go -- we're going to be bouncing off the bottom from here on out?

這僅僅是我們對庫存修正所做的事情，我們將要離開——我們將從現在開始從底部反彈嗎？

Just any insight on that.

只是對此的任何見解。

Yes.

是的。

A couple of comments.

一些評論。

One, we did mention that we expected continued distribution inventory declines in the third quarter, and we think that'll be about the end of it.

一，我們確實提到我們預計第三季度分銷庫存將持續下降，我們認為這將是它的結束。

So it's really not a big destocking change in attitude.

所以這真的不是態度上的大去庫存變化。

We have seen stabilization actually increases from backlog in China.

我們已經看到中國的積壓實際上增加了穩定性。

Whereas they were declining pretty rapidly beginning the year, those now look to be done with the inventory correction and starting to increase.

儘管從今年開始它們的下降速度非常快，但現在看來，隨著庫存的調整併開始增加，這些都已完成。

And our next question comes from the line of Harlan Sur with JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Maybe just to follow up on that previous question.

也許只是為了跟進上一個問題。

So on the weaker industrial trends, especially Greater China, you guys are starting to see signs of stabilization.

因此，在工業趨勢較弱的情況下，尤其是大中華區，你們開始看到企穩的跡象。

Any specific subsegments where you're starting to see this stabilization, factory automation, building automation?

您開始看到這種穩定性、工廠自動化、樓宇自動化的任何特定子領域？

Any color here would be great.

這裡的任何顏色都會很棒。

It's across the board in China that kind of are starting to see the increases there.

在中國全面開始看到那裡的增長。

So no one market stands out.

所以沒有一個市場脫穎而出。

Okay.

好的。

And then on the distribution inventory, it came down nicely in Q2, will be down again in Q3.

然後在分銷庫存方面，它在第二季度下降得很好，第三季度將再次下降。

Resales were up sequentially in June.

6 月份的轉售量環比上升。

So relative to, let's say, your flattish guide for Q3 ex Quantenna, how much are you anticipating resales up sequentially in Q3?

因此，相對於你對 Q3 ex Quantenna 的平淡指南，你預計 Q3 的轉售量會增加多少？

Looks like autos will be up.

看來汽車要漲了。

Do you expect industrial resells to be up sequentially as well?

您是否預計工業轉售也會依次上升？

We are expecting to see sequential increases in the resales.

我們預計轉售量將連續增加。

They all matched pretty much in the commentary I gave by market.

他們在我給出的市場評論中都非常匹配。

We see normal ramps in communications in the third quarter.

我們看到第三季度的通信正常增長。

We'll see some ramps on the automotive side, but those will be reflecting -- Q3 extra resales will be reflecting the market commentaries.

我們將看到汽車方面的一些坡道，但這些將反映出來——第三季度的額外轉售將反映市場評論。

And our next question comes from the line of Harsh Kumar with Piper Jaffray.

我們的下一個問題來自與 Piper Jaffray 的 Harsh Kumar。

I wanted to revisit the question on OpEx.

我想重新審視關於 OpEx 的問題。

As you look to integrate Quantenna, I'm assuming your September guidance Quantenna OpEx is built into it.

當您希望集成 Quantenna 時，我假設您 9 月份的指導 Quantenna OpEx 已內置在其中。

How should we think about the sort of synergies kicking in?

我們應該如何看待這種協同效應？

And to what extent do you -- is there a goal that you would give us on a percentage basis with how we should think about on OpEx basis longer term?

您在多大程度上 - 您是否會在百分比基礎上給我們一個目標，以及我們應該如何考慮長期運營支出？

So our long-term goal for OpEx is the same 21% as we have elaborated in our Analyst Day.

因此，我們的 OpEx 長期目標與我們在分析師日中闡述的 21% 相同。

We are on track to do the plans for synergies for Quantenna.

我們正在為 Quantenna 制定協同效應計劃。

When we announced Quantenna, we talked about synergies being about $26 million.

當我們宣布 Quantenna 時，我們談到協同效應約為 2600 萬美元。

About $16 million of those in OpEx and in COGS, and they will be coming in and become meaningful in 2020.

OpEx 和 COGS 中約有 1600 萬美元，它們將在 2020 年進入並變得有意義。

Okay.

好的。

And then for my follow-up, I was curious if you could size how much business you're not able to do with Huawei as you look to get these licenses.

然後在我的後續行動中，我很好奇您是否可以在尋求獲得這些許可證時確定您無法與華為開展的業務量。

If there's any color you could give us on that front that'd be helpful.

如果你可以在這方面給我們任何顏色，那會很有幫助。

We normally don't give any details on specific customers.

我們通常不會提供有關特定客戶的任何詳細信息。

But as we said in our prepared remarks, we have partially resumed the shipments on -- to the customers that were affected.

但正如我們在準備好的評論中所說，我們已部分恢復向受影響的客戶發貨。

Our next question comes from the line of Shawn Harrison with Longbow Research.

我們的下一個問題來自 Longbow Research 的 Shawn Harrison。

On the commentary about distribution and in the inventory corrections, I guess that commentary seemed to be a little bit ahead of the more negative tone you all had last week.

關於分銷和庫存修正的評論，我想評論似乎比你們上週更負面的語氣有點早。

And I was wondering if your inventory corrections maybe ending earlier, a function of the power products you sell being in higher demand or managing inventories little bit more aggressively than others?

我想知道您的庫存調整是否可能更早結束，您銷售的電力產品的需求量更大，或者庫存管理比其他產品更積極一些？

Yes.

是的。

As I mentioned, certainly mix has an impact on what goes on there.

正如我所提到的，混合肯定會對那裡發生的事情產生影響。

But we've also talked over the quarters about how we have a little better control system and much better visibility.

但我們也在幾個季度討論了我們如何擁有更好的控制系統和更好的可見性。

So reacting appropriately and never getting too overstocked is also a piece to that equation.

因此，做出適當的反應並且永遠不會過度庫存也是該等式的一部分。

And then as a follow-up, if I may.

然後作為後續行動，如果可以的話。

Bernard, free cash generation this year is probably a little bit light versus the typical curve.

伯納德，與典型曲線相比，今年的自由現金產生可能有點少。

Maybe you can talk about how you would expect to see free cash flow generation in the second half of the year?

也許您可以談談您對下半年自由現金流產生的預期？

Typically, if you look at seasonality of our free cash flow, it is back-end loaded typically in the third and even more meaningfully in the fourth quarter.

通常，如果您查看我們的自由現金流的季節性，它通常在第三季度被後端加載，在第四季度甚至更有意義。

So we expect to see some catch-up playing throughout the rest of the year.

因此，我們希望在今年餘下的時間裡看到一些追趕者。

And our next question comes from the line of Chris Caso with Raymond James.

我們的下一個問題來自 Chris Caso 和 Raymond James。

Just a question following up on distributor resale.

只是一個關於分銷商轉售的問題。

And obviously, you and everyone else are reporting on a sell-in basis now.

顯然，您和其他所有人現在都在以賣出為基礎進行報告。

Can you help us to quantify how much the distribution inventory reduction has been a headwind in the second quarter and what's contemplated in our third quarter guidance?

您能否幫助我們量化第二季度分銷庫存減少的不利因素以及我們第三季度指導中的預期？

How significant is that?

這有多重要？

So in both quarters, there is a significant reduction contemplated.

因此，在這兩個季度中，都在考慮大幅減少。

And I don't know that we're giving specific numbers there, Chris, but certainly they're meaningful.

我不知道我們在那兒給出了具體的數字，克里斯，但它們肯定是有意義的。

And we expect leaving the third quarter to be toward the lower end of our normal operating guidance or just the inventory.

我們預計第三季度將接近我們正常運營指導的低端，或者只是庫存。

Right.

對。

As a follow-up then, any comments about how we should look about -- look at December?

作為後續行動，關於我們應該如何看待的任何評論 - 看看 12 月？

And obviously, there's a lot of moving pieces on a macro, but with what you said on distribution inventory, I suppose that would be a tailwind as sell-in and sell-out converge.

很明顯，宏觀上有很多變動的部分，但根據你所說的分銷庫存，我想這將是一個順風，因為賣進和賣完會合。

Any other things we should be thinking about with respect to December?

關於 12 月，我們還應該考慮其他任何事情嗎？

Yes.

是的。

We only give guidance 1 quarter at a time.

我們一次只提供 1 個季度的指導。

But I would reiterate that we expect the distribution inventory correction to be largely over in Q3 of this year.

但我要重申，我們預計分銷庫存調整將在今年第三季度基本結束。

And our last question comes from the line of Craig Hettenbach with Morgan Stanley.

我們的最後一個問題來自摩根士丹利的 Craig Hettenbach。

A question for Keith on autos.

基思關於汽車的問題。

And understanding it is a very challenging backdrop, particularly in China.

理解它是一個非常具有挑戰性的背景，尤其是在中國。

But it's also unusual in the quarter as reported to see a big delta.

但據報導，該季度出現了巨大的增量，這也很不尋常。

And so if you can just give some color in terms of this cycle, what you're seeing from Tier 1 suppliers and OEMs and how they're maybe managing inventory that led to a much bigger drag in Q2?

因此，如果您可以就這個週期給出一些顏色，您從一級供應商和原始設備製造商那裡看到了什麼，以及他們如何管理導致第二季度更大拖累的庫存？

Yes.

是的。

Our -- a lot of dialogue occurred there, as you might have expected.

正如你所預料的那樣，我們在那裡進行了很多對話。

And I do believe that many of the auto suppliers remained more optimistic longer than I've seen in the past and then decided to take some fairly decisive inventory corrections as they got through the second quarter.

而且我確實相信，許多汽車供應商比我過去看到的更長時間保持樂觀，然後他們決定在第二季度進行一些相當果斷的庫存調整。

So from my perspective, that's what's different this Q2 versus any of the others we've experienced.

所以從我的角度來看，這就是第二季度與我們經歷過的任何其他方面的不同之處。

Got it.

知道了。

And then just a quick follow-up.

然後只是快速跟進。

You've commented about distribution inventory and expectations into Q3.

您已經評論了第三季度的分銷庫存和預期。

Any thoughts from an OEM perspective?

從 OEM 的角度有什麼想法嗎？

I know that's been little bit of a drag as well, but just how you see OEM inventory into Q3?

我知道這也有點拖累，但您如何看待第三季度的 OEM 庫存？

Again, just this is more qualitative than quantitative.

同樣，這只是定性而不是定量。

As we talked to our customer base, and particularly in the auto sector, we think they are largely going to be corrected at around the same time into Q3 to beginning of Q4.

當我們與客戶群交談時，特別是在汽車行業，我們認為它們將在第三季度至第四季度初的大約同一時間得到糾正。

And that does conclude this question-and-answer session.

這確實結束了這個問答環節。

I would now like to turn the call back to Parag Agarwal for any further remarks.

我現在想將電話轉回 Parag Agarwal 以徵求任何進一步的意見。

Thank you, everyone, for joining the call today.

謝謝大家今天加入電話會議。

We look forward to seeing you at various conferences during the quarter.

我們期待在本季度的各種會議上見到您。

Goodbye.

再見。

Ladies and gentlemen, thank you for participating in today's conference.

女士們，先生們，感謝你們參加今天的會議。

This does conclude today's program.

今天的節目到此結束。

You may all disconnect.

你們都可以斷開連接。

Everyone, have a great day.

大家，有一個美好的一天。