慧榮科技 (SIMO) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Silicon Motion Technology Corporation's Third Quarter 2020 Earnings Conference Call.

女士們，先生們，感謝你們的支持，歡迎來到慧榮科技公司 2020 年第三季度財報電話會議。

(Operator Instructions) And please be advised that today's conference is being recorded today.

（操作員說明）請注意，今天的會議正在錄製中。

And this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended.

本次電話會議包含經修訂的 1933 年證券法第 27A 條和 1934 年證券交易法第 21E 條含義內的前瞻性陳述。

Such forward-looking statements include, without limitation, statements regarding trends in the semiconductor industry and our future results of operations, financial condition and business prospects.

此類前瞻性陳述包括但不限於有關半導體行業趨勢和我們未來經營業績、財務狀況和業務前景的陳述。

Although such statements are based on our own opinion and information from other sources we believe to be reliable, you should not place undue reliance on them.

儘管此類陳述基於我們自己的意見和我們認為可靠的其他來源的信息，但您不應過分依賴它們。

These statements involve risks and uncertainties and actual market trends, and our results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons.

這些陳述涉及風險和不確定性以及實際市場趨勢，我們的結果可能因各種原因與這些前瞻性陳述中明示或暗示的結果存在重大差異。

Potential risks and uncertainties include, but are not limited to, continued competitive pressure in the semiconductor industry and the effect of such pressure on prices, unpredictable changes in technology and consumer demand for multimedia consumer electronics, the state of and any change in our relationships with our major customers and changes in political, economic, legal and social conditions in Taiwan.

潛在的風險和不確定性包括但不限於半導體行業的持續競爭壓力以及這種壓力對價格的影響、技術的不可預測的變化和消費者對多媒體消費電子產品的需求、我們與我們的主要客戶以及台灣政治、經濟、法律和社會狀況的變化。

For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time-to-time with the Securities and Exchange Commission.

有關這些風險和不確定性以及其他因素的更多討論，請參閱我們不時向美國證券交易委員會提交的文件。

We assume no obligation to update any forward-looking statements, which apply only as of the date of this conference call.

我們不承擔更新任何前瞻性陳述的義務，這些陳述僅適用於本次電話會議之日。

I would now like to hand the conference over to your first speaker for today, Mr. Chris Chaney, Director of Investor Relations and Strategy.

現在，我想將會議交給您今天的第一位發言人，投資者關係和戰略總監克里斯·錢尼 (Chris Chaney) 先生。

Please go ahead.

請繼續。

Thank you, Annie.

謝謝你，安妮。

Good morning, everyone, and welcome to Silicon Motion's Third Quarter 2020 Financial Results Conference Call and Webcast.

各位早上好，歡迎收看慧榮科技 2020 年第三季度財務業績電話會議和網絡直播。

As Annie just mentioned, my name is Chris Chaney, Director of Investor Relations.

正如 Annie 剛才提到的，我叫 Chris Chaney，投資者關係總監。

And joining me today on the call are Wallace Kou, our President and CEO; and Riyadh Lai, our CFO.

今天和我一起參加電話會議的還有我們的總裁兼首席執行官 Wallace Kou；和我們的首席財務官 Riyadh Lai。

Following my comments, Wallace will provide a review of our key business developments, and then Riyadh will discuss our third quarter results and our outlook.

在我發表評論之後，華萊士將回顧我們的主要業務發展，然後利雅得將討論我們第三季度的業績和展望。

We will then conclude with a question-and-answer period.

然後我們將以問答環節結束。

Before I get started, I would like to remind you of our safe harbor policy, which was read at the start of this call.

在開始之前，我想提醒您注意我們在本次電話會議開始時閱讀的安全港政策。

For a comprehensive overview of the risks involved in investing in our securities, please refer to our filings with the U.S. SEC.

如需全面了解投資我們證券所涉及的風險，請參閱我們向美國證券交易委員會提交的文件。

For more details on our financial results, please refer to our press release, which we filed on Form 6-K after the close of market yesterday.

有關我們財務業績的更多詳細信息，請參閱我們在昨天收市後以 6-K 表格提交的新聞稿。

This webcast will be available for replay in the Investor Relations section of our website for a limited time.

該網絡廣播將在我們網站的投資者關係部分限時重播。

To enhance our investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call.

為了加強投資者對我們持續經濟表現的了解，我們將在本次電話會議期間討論非 GAAP 信息。

We will use non-GAAP financial measures internally to evaluate and manage our operations.

我們將在內部使用非 GAAP 財務指標來評估和管理我們的運營。

We have, therefore, chosen to provide this information to enable you to perform comparisons of our operating results in a manner similar to how we analyze our own operating results.

因此，我們選擇提供此信息，以使您能夠以類似於我們分析我們自己的經營業績的方式對我們的經營業績進行比較。

For more consistent year-over-over comparisons for this quarter and our upcoming fourth quarter, we are internally measuring our performance based on non-GAAP less FCI, which was divested in May of 2019.

為了對本季度和即將到來的第四季度進行更一致的同比比較，我們正在根據非 GAAP 減去 FCI（於 2019 年 5 月剝離）來內部衡量我們的業績。

The reconciliation of the GAAP to non-GAAP financial data can be found in our earnings release issued yesterday.

GAAP 與非 GAAP 財務數據的對賬可以在我們昨天發布的收益報告中找到。

We ask that you review it in conjunction with this call.

我們要求您結合此次電話會議對其進行審查。

And now with that, I'd like to turn the call over to Wallace.

現在，我想把電話轉給華萊士。

Thank you, Chris.

謝謝你，克里斯。

Hello, everyone, and thank you for joining us today.

大家好，感謝您今天加入我們。

In our third quarter, we delivered $126 million in sales, 5% more than the high end of our guidance.

第三季度，我們實現了 1.26 億美元的銷售額，比我們指導的上限高出 5%。

Revenue declined 8% sequentially and increased 11% year-over-year.

收入環比下降 8%，同比增長 11%。

Earnings per ADS for this quarter were $0.76, down from $0.81 in the second quarter and up from $0.69 the same quarter last year.

本季度每 ADS 收益為 0.76 美元，低於第二季度的 0.81 美元，高於去年同期的 0.69 美元。

For the first 9 months of this year, our revenue grew 33%, and earnings per ADS are 45% higher compared with the same period last year.

今年前 9 個月，我們的收入增長了 33%，每 ADS 收益比去年同期高出 45%。

Our third quarter results exceeded expectations due to stronger sales of SSD controllers.

由於 SSD 控制器的銷售強勁，我們第三季度的業績超出了預期。

And as expected, our eMMC+

正如預期的那樣，我們的 eMMC+

UFS controller sales declined significantly due to temporary customer inventory adjustments, while our SSD solutions sales was softer than anticipated.

由於臨時客戶庫存調整，UFS 控制器銷售額大幅下降，而我們的 SSD 解決方案銷售額低於預期。

Our stronger-than-expected SSD controller sales in the third quarter is a solid reversal of softer sales in the second quarter.

我們在第三季度強於預期的 SSD 控制器銷售是對第二季度銷售疲軟的有力逆轉。

As you may remember, our second quarter SSD controller sales were affected by our NAND flash customers redirecting NAND away from client SSD to meet the surge procurement of data center SSD by the hyperscalers due to unexpected working and learning-from-home demand.

您可能還記得，我們的第二季度 SSD 控制器銷售受到我們的 NAND 閃存客戶將 NAND 從客戶端 SSD 重定向以滿足超大規模數據中心 SSD 因意外工作和在家學習需求而激增採購的影響。

Hyperscalers surge procurement is now over.

Hyperscalers 激增採購現已結束。

In the third quarter, we saw hyperscaler procurement of data center SSD drop off, which frees up NAND flash for client SSD.

第三季度，我們看到數據中心 SSD 的超大規模採購減少，這為客戶端 SSD 釋放了 NAND 閃存。

This quarter, with better availability of NAND, we delivered about 20% sequential SSD controller sales growth, with solid growth in both our NAND and module maker customers and solid growth to both PC OEM and for channel markets.

本季度，隨著 NAND 可用性的提高，我們實現了約 20% 的連續 SSD 控制器銷售增長，我們的 NAND 和模塊製造商客戶穩步增長，PC OEM 和渠道市場穩步增長。

Growing availability of the lower-cost NAND is favorable for facilitating further growth in the adoption of SSD by PC OEMs and new usage cases for game console and external storage.

低成本 NAND 的可用性不斷提高有利於促進 PC OEM 對 SSD 的進一步採用以及遊戲機和外部存儲的新用例。

Based on our SSD controller sales growth during the first 9 months of this year, we are likely growing roughly twice as fast as the market, and we expect momentum to continue through next year.

根據我們今年前 9 個月的 SSD 控制器銷售增長，我們的增長速度可能大約是市場的兩倍，我們預計這一勢頭將持續到明年。

Last quarter, we announced several new PCIe Gen 4 SSD controller design win with 5 NAND flash makers.

上個季度，我們宣布了幾個新的 PCIe Gen 4 SSD 控制器設計贏得了 5 個 NAND 閃存製造商。

We continue to make so solid progress with our engineering work in bringing these design wins with our 5 NAND flash customers into production beginning in the middle of next year.

我們繼續在我們的工程工作中取得如此穩固的進展，從明年年中開始將這些設計勝利與我們的 5 個 NAND 閃存客戶一起投入生產。

Four of our 5 Gen 4 NAND customers are existing Gen 3 customers.

我們的第 5 代 4 NAND 客戶中有四個是現有的第 3 代客戶。

One of the 5, however, is new, a Korean NAND flash customer, a partner with whom we have a long, well-established and deep relationship.

然而，這 5 個客戶中有一個是新客戶，是韓國 NAND 閃存客戶，我們與合作夥伴建立了長期、穩固和深厚的關係。

Furthermore, we have already secured multiple PCIe Gen 4 SSD controller design win with this Korean customer.

此外，我們已經贏得了該韓國客戶的多個 PCIe Gen 4 SSD 控制器設計。

Recently, we announced the rollout of a broad range of PCIe Gen 4 SSD controllers, SM2264 for high-performance applications, SM2267 for the mainstream segment and SM2267XT for the value line DRAM-less client SSD.

最近，我們宣布推出範圍廣泛的 PCIe Gen 4 SSD 控制器、用於高性能應用的 SM2264、用於主流細分市場的 SM2267 和用於價值線 DRAM-less 客戶端 SSD 的 SM2267XT。

We believe the rollout of these Gen 4 controllers is well timed with Intel's current and upcoming launch of the new series of 11th generation CPU that are designed specifically for the fast -- faster PCIe Gen 4 connectivity.

我們相信這些第 4 代控制器的推出恰逢英特爾當前和即將推出的新系列第 11 代 CPU，這些 CPU 專為快速 - 更快的 PCIe Gen 4 連接而設計。

In addition to our design wins with 5 NAND flash makers, we also have extensive design win with most of the leading module makers.

除了我們贏得了 5 家 NAND 閃存製造商的設計，我們還贏得了大多數領先模塊製造商的廣泛設計。

For example, ADATA, one of our largest module maker customers, begin commercial sales of a new PCIe Gen 4 SSD last month using our controller.

例如，威剛是我們最大的模塊製造商客戶之一，上個月使用我們的控制器開始商業銷售新的 PCIe Gen 4 SSD。

This is one of the first Gen 4 SSD available today that's optimized specifically for notebook PC and other energy-efficient applications.

這是當今首批專為筆記本電腦和其他節能應用程序優化的第 4 代 SSD 之一。

Previously, our Gen 4 SSD were power-hungry and only suitable for desktop PC and other devices always connected to electricity.

以前，我們的第 4 代 SSD 非常耗電，僅適用於桌面 PC 和其他始終連接電力的設備。

As CPU from both Intel and AMD that support PCIe Gen 4 become more widely available, you should expect to see more of our customers release products with our new Gen 4 controllers.

隨著支持 PCIe Gen 4 的 Intel 和 AMD CPU 的普及，您應該會看到更多的客戶發布帶有我們新的 Gen 4 控制器的產品。

And as some of you know, the performance of our new Gen 4 controller based on key metrics are the best of breed versus other similar merchant and captive solutions.

正如你們中的一些人所知，我們基於關鍵指標的新 Gen 4 控制器的性能與其他類似的商業和專屬解決方案相比是同類產品中最好的。

Our broad slate of design win with 5 NAND flash makers and leading module makers is a testament to our very competitive value proposition to customers.

我們贏得了 5 家 NAND 閃存製造商和領先模塊製造商的廣泛設計獎，這證明了我們對客戶極具競爭力的價值主張。

Three years ago, we shipped a little over $150 million of SSD controllers.

三年前，我們出貨了 1.5 億美元多一點的 SSD 控制器。

This year, we are tracking towards roughly doubling that.

今年，我們正朝著大約翻一番的方向努力。

And based on our current pipeline of design activities, we are confident that more robust SSD controller sales growth lies ahead.

根據我們目前的設計活動渠道，我們相信未來會有更強勁的 SSD 控制器銷售增長。

Separately, we are excited about the design work that our team has been planning and executing relating to our upcoming state-of-the-art enterprise-grade PCIe Gen 5 SSD controllers.

另外，我們很高興我們的團隊一直在計劃和執行與我們即將推出的最先進的企業級 PCIe Gen 5 SSD 控制器相關的設計工作。

This product is designed specifically for the enterprise market and including many technological breakthroughs; and that, we believe, will be well received by target data center customers.

該產品專為企業市場設計，包含多項技術突破；我們相信，這將受到目標數據中心客戶的歡迎。

I look forward to sharing more about this next year.

我期待著明年分享更多關於這方面的信息。

Let me now talk about our eMMC+

現在讓我談談我們的eMMC+

UFS controllers.

UFS 控制器。

This quarter, as previously communicated, our eMMC+

本季度，如前所述，我們的 eMMC+

UFS controller sales declined sharply as our large UFS customer has had to temporarily digest its elevated inventory.

由於我們的大型 UFS 客戶不得不暫時消化其增加的庫存，UFS 控制器的銷售額急劇下降。

We believe this customer benefited from the strong rebound in smartphone shipment in the third quarter and made good progress depleting its excess UFS inventory.

我們認為該客戶受益於第三季度智能手機出貨量的強勁反彈，並在消耗其過剩 UFS 庫存方面取得了良好進展。

With smartphone shipment expected to continue growing in the fourth quarter and with a positive booking trends, we believe our UFS controller sales are making good progress toward recovery in the fourth quarter.

由於第四季度智能手機出貨量預計將繼續增長，並且預訂趨勢良好，我們相信我們的 UFS 控制器銷售在第四季度取得了良好的複蘇進展。

Earlier this year, we mentioned that this customer was sampling the industry's first LPDDR5 uMCP, a UFS 3.0 product that position well with OEM for high-volume sales.

今年早些時候，我們提到該客戶正在試用業界首款 LPDDR5 uMCP，這是一款 UFS 3.0 產品，非常適合 OEM 大批量銷售。

We are, therefore, delighted with their recent announcement that commercial production has started.

因此，我們很高興他們最近宣布商業生產已經開始。

Previously, for several years, we had been shipped -- shipping UFS 2.0 controller to this customer in volume, and we are now excited to add a new UFS 3.0 controller to our sales to them.

以前，幾年來，我們一直在發貨——向該客戶批量發貨 UFS 2.0 控制器，現在我們很高興在向他們的銷售中添加一個新的 UFS 3.0 控制器。

Similar to our UFS 2.0 program, our UFS 3.0 program also has multiple year road map.

與我們的 UFS 2.0 計劃類似，我們的 UFS 3.0 計劃也有多年的路線圖。

We expect our UFS 3.0 program to take advantage of our customers' upcoming generation of NAND flash as well as incremental UFS 3.0 enhancement.

我們希望我們的 UFS 3.0 計劃能夠利用我們客戶即將推出的新一代 NAND 閃存以及遞增的 UFS 3.0 增強功能。

Separately, we are making good progress with our other NAND customers' UFS 3.0 project, which continue to target initial production by mid-2021.

另外，我們與其他 NAND 客戶的 UFS 3.0 項目取得了良好進展，該項目繼續以 2021 年年中為目標進行初始生產。

Similar to that of our first UFS customer, this program will also span multiple NAND flash and UFS generations.

與我們的第一個 UFS 客戶類似，該計劃也將跨越多代 NAND 閃存和 UFS。

The legacy eMMC market has surprised us with this resilience even with smartphone transition to UFS.

即使智能手機向 UFS 過渡，傳統 eMMC 市場的這種彈性也讓我們感到驚訝。

Several years ago, we supported 0.5 dozen Chinese module makers interesting with eMMC embedded storage for emerging smart set-top box, speakers, TV, game console and a host of other IoT devices.

幾年前，我們支持了 0.5 打對新興智能機頂盒、揚聲器、電視、遊戲機和許多其他物聯網設備的 eMMC 嵌入式存儲感興趣的中國模塊製造商。

The volume of these devices have grown to be 1/4 to 1/3 the size of the smartphone market.

這些設備的數量已經增長到智能手機市場規模的 1/4 到 1/3。

These module makers have also started shipping eMMC to Tier 2 and Tier 3 smartphone OEM and for low-cost smartphone of Tier 1 OEMs.

這些模塊製造商還開始向二級和三級智能手機 OEM 以及一級 OEM 的低成本智能手機出貨 eMMC。

Recently, we also expand our module maker customer base to include Kingston and specialty module maker from elsewhere in Asia, North America and Europe for automotive and boot code storage applications.

最近，我們還擴大了我們的模塊製造商客戶群，包括金士頓和來自亞洲、北美和歐洲其他地方的專業模塊製造商，用於汽車和啟動代碼存儲應用。

In the first 9 months of this year, even with our customers' large third quarter inventory adjustment, we were able to grow our eMMC+

今年前 9 個月，即使我們客戶的第三季度庫存大幅調整，我們也能夠增長我們的 eMMC+

UFS sales 70% year-over-year.

UFS 銷售額同比增長 70%。

The smartphone industry is roughly halfway through the UFS technology transition, up from roughly 1/3 last year.

智能手機行業大約處於 UFS 技術轉型的一半，高於去年的大約 1/3。

And we expect further strong growth next year, with strong continued growth from our first UFS NAND customer, growth from our second UFS NAND customer and further growth from our broad set of module maker customers focused on bringing eMMC+

我們預計明年將進一步強勁增長，我們的第一個 UFS NAND 客戶將實現強勁的持續增長，我們的第二個 UFS NAND 客戶將實現強勁增長，而我們廣泛的模塊製造商客戶將進一步增長，專注於帶來 eMMC+

UFS embedded storage to non-smartphone devices.

UFS 嵌入式存儲到非智能手機設備。

Turning to our SSD solutions.

轉向我們的 SSD 解決方案。

Sales were softer than expected due to more competitive market conditions and slower hyperscale spending in China.

由於競爭激烈的市場條件和中國超大規模支出放緩，銷售額低於預期。

Our sale of a customer design, Open Channel SSD, to Alibaba were in line with internal plan, with our Shannon standard NVMe SSD faced both more intensive competition from flash makers as well as further weakening of demand for SSD by data center operations in China.

我們向阿里巴巴出售客戶設計的 Open Channel SSD 符合內部計劃，我們的 Shannon 標準 NVMe SSD 面臨來自閃存製造商的更激烈競爭以及中國數據中心運營對 SSD 的需求進一步減弱。

These unfavorable market conditions affected both our sales and gross margins.

這些不利的市場條件影響了我們的銷售額和毛利率。

We are, however, optimistic about next year.

然而，我們對明年持樂觀態度。

Our Alibaba Open Channel SSD project for next year remain on track, and we expect to be shipping to 3 programs next year compared to 1 program this year.

我們明年的阿里巴巴開放通道 SSD 項目仍在進行中，我們預計明年將交付給 3 個項目，而今年為 1 個項目。

Alibaba increasingly appreciate the enhanced performance of its operation from using Open Channel technology and is keen to expand the rollout and continued upgrade of this technology in its data center infrastructure.

阿里巴巴越來越重視使用開放通道技術提高運營績效，並熱衷於在其數據中心基礎設施中擴大推廣和持續升級該技術。

Now I will turn the call over to Riyadh to discuss our financial results and our outlook.

現在我將把電話轉給利雅得來討論我們的財務業績和前景。

Thank you, Wallace, and hello, everyone.

謝謝你，華萊士，大家好。

I will discuss additional details of our third quarter results and then provide our guidance.

我將討論我們第三季度業績的更多細節，然後提供我們的指導。

My comments today will focus primarily on our non-GAAP results less FCI, unless otherwise specifically noted.

除非另有特別說明，否則我今天的評論將主要關注我們的非 GAAP 結果減去 FCI。

A reconciliation of our GAAP to non-GAAP is included with the earnings release issued yesterday.

我們的 GAAP 與非 GAAP 的調節包含在昨天發布的收益報告中。

In the third quarter, revenue was $126 million, 8% lower sequentially but 11% higher year-over-year.

第三季度收入為 1.26 億美元，環比下降 8%，但同比增長 11%。

Year-to-date, revenue of $396 million is 33% higher than for the same period a year ago.

年初至今，收入為 3.96 億美元，比去年同期增長 33%。

Earnings per ADS in Q3 were $0.76, 6% lower sequentially and 10% higher year-over-year.

第三季度每 ADS 收益為 0.76 美元，環比下降 6%，同比上升 10%。

Year-to-date, earnings per ADS are $2.38, 45% higher than for the same period a year ago.

年初至今，每份 ADS 的收益為 2.38 美元，比去年同期高出 45%。

Now some details starting with performance of our 3 key products.

現在從我們 3 種主要產品的性能開始介紹一些細節。

SSD controller sales increased about 20% sequentially due to improved availability of NAND supply and strong demand by PC OEMs and channel markets.

由於 NAND 供應的可用性提高以及 PC OEM 和渠道市場的強勁需求，SSD 控制器銷售額環比增長約 20%。

Year-to-date, sales are up over 20% year-over-year and growing roughly twice as fast as the market.

年初至今，銷售額同比增長超過 20%，增速大約是市場增速的兩倍。

eMMC+

eMMC+

UFS controller sales declined about 50% sequentially and about 10% year-over-year due to a large customer's temporary UFS inventory adjustment.

由於大客戶臨時調整 UFS 庫存，UFS 控制器銷售額環比下降約 50%，同比下降約 10%。

As discussed last quarter, this large but temporary drop was expected.

正如上個季度所討論的那樣，這種大幅但暫時的下降是意料之中的。

Year-to-date, sales are, however, up about 70% year-over-year, as smartphone embedded storage technology transitioned further from legacy eMMC to newer UFS, and our U.S. NAND customer gained market share.

然而，年初至今，隨著智能手機嵌入式存儲技術從傳統的 eMMC 進一步過渡到更新的 UFS，我們的美國 NAND 客戶獲得了市場份額，銷售額同比增長了約 70%。

SSD solutions sales declined about 10% sequentially because of continued softness in demand by Chinese hyperscalers and more intense competition from NAND flash makers in the standard enterprise NVMe SSD market.

SSD 解決方案銷售額環比下降約 10%，原因是中國超大規模企業的需求持續疲軟，以及 NAND 閃存製造商在標準企業級 NVMe SSD 市場上的競爭更加激烈。

Year-to-date, sales are up about 80% year-over-year, with similar growth from both our Shannon and Ferri products.

年初至今，銷售額同比增長約 80%，我們的 Shannon 和 Ferri 產品也有類似的增長。

Shannon sales are up this year because our first-generation Open Channel SSD only started sales in Q3 last year.

Shannon 今年的銷售額有所上升，因為我們的第一代 Open Channel SSD 去年第三季度才開始銷售。

This year, we have the benefit of a full year of Open Channel sales.

今年，我們受益於全年的開放渠道銷售。

Ferri sales are up this year because last year, NAND prices fell sharply; while this year, NAND prices are more stable.

Ferri 今年的銷售額上升是因為去年 NAND 價格大幅下跌；而今年，NAND價格較為穩定。

Gross margin in Q3 declined to 49.1% from 50.0% in the prior quarter due to much lower SSD solutions gross margin.

由於 SSD 解決方案的毛利率大幅下降，第三季度的毛利率從上一季度的 50.0% 下降至 49.1%。

Gross margin uplift from a slightly higher mix of controllers and gross margins that were unchanged sequentially was more than offset by much lower SSD solutions gross margins, primarily because Shannon standard NVMe SSD gross margins contracted more than expected.

略微更高的控制器和毛利率組合帶來的毛利率提升被較低的 SSD 解決方案毛利率所抵消，這主要是因為 Shannon 標準 NVMe SSD 毛利率收縮幅度超過預期。

Operating expenses in Q3 were $32.9 million, $5.1 million lower than the prior quarter, primarily due to temporarily lower R&D tape-out expenses.

第三季度的運營費用為 3290 萬美元，比上一季度減少 510 萬美元，這主要是由於暫時降低的研發流片費用。

Operating margin in Q3 was 23.0%, an increase from 22.2% in the prior quarter, due to lower operating expenses.

由於運營費用較低，第三季度的運營利潤率為 23.0%，高於上一季度的 22.2%。

Our effective tax rate in Q3 was 10.5%, towards the low end of our 10% to 15% guidance range.

我們在第三季度的有效稅率為 10.5%，接近我們 10% 至 15% 指導範圍的低端。

We currently enjoy a tax benefit that will expire in Q4.

我們目前享受的稅收優惠將於第四季度到期。

Without this tax benefit, our Q3 tax rate would have been slightly higher than 15%.

如果沒有這項稅收優惠，我們第三季度的稅率會略高於 15%。

Stock-based compensation in our operating expenses, which we exclude from our non-GAAP results, was $3.1 million in Q3, within our $2.7 million to $3.7 million guidance range.

我們從非 GAAP 結果中排除的基於股票的運營費用補償在第三季度為 310 萬美元，在我們 270 萬至 370 萬美元的指導範圍內。

We had $368 million of cash, cash equivalents, restricted cash and short-term investments at end of Q3 compared to $380 million at the end of the prior quarter.

截至第三季度末，我們擁有 3.68 億美元的現金、現金等價物、受限制的現金和短期投資，而上一季度末為 3.8 億美元。

We paid $12.3 million in dividends to shareholders, the fourth quarterly installment of our $1.40 per ADS annual dividend that was announced in October of last year.

我們向股東支付了 1,230 萬美元的股息，這是去年 10 月宣布的每 ADS 年度股息 1.40 美元的第四季度分期付款。

Our Board recently declared dividends for the next 4 quarters, with quarterly installment payments of $0.35 per ADS, unchanged from the previous 4 quarters.

我們的董事會最近宣布了未來 4 個季度的股息，每 ADS 每季度分期付款 0.35 美元，與前 4 個季度持平。

We repurchased $25 million of ADS during the third quarter, 626,000 ADSs at an average price of $39.91.

我們在第三季度以 39.91 美元的平均價格回購了 2500 萬美元的美國存託憑證，即 626,000 份美國存託憑證。

Since the beginning of the share repurchase program 2 years ago, we have repurchased $84.8 million of ADSs, 2.4 million ADSs that is equivalent to 7% of total shares outstanding, at an average price of $35.38.

自 2 年前股票回購計劃開始以來，我們已經回購了 8480 萬美元的美國存託憑證，240 萬股美國存託憑證相當於已發行股票總數的 7%，平均價格為 35.38 美元。

Since this 2-year share repurchase program will expire in November and $115.2 million remains unused, our Board recently authorized a 12-month extension to allow for more time to complete the program.

由於這項為期 2 年的股票回購計劃將於 11 月到期，並且仍有 1.152 億美元未使用，我們的董事會最近批准了 12 個月的延期，以便有更多時間來完成該計劃。

Now let me turn to our fourth quarter guidance and forward-looking business trends.

現在讓我談談我們的第四季度指導和前瞻性業務趨勢。

For the fourth quarter, we expect revenue to increase in the range of 3% to 10% sequentially to approximately $130 million to $139 million.

對於第四季度，我們預計收入將環比增長 3% 至 10%，達到約 1.3 億美元至 1.39 億美元。

We expect higher SSD controller sales as current positive momentum continues, higher eMMC+

我們預計 SSD 控制器銷量會隨著當前的積極勢頭持續、更高的 eMMC+

UFS controller sales after 1 quarter of UFS customer inventory adjustment and lower SSD solutions sales, as our 2020 Alibaba project seasonally ended at the end of Q3 and our other solution products faced less favorable competitive dynamics.

由於我們的 2020 年阿里巴巴項目在第三季度末季節性結束，我們的其他解決方案產品面臨不利的競爭動態，因此第一季度 UFS 客戶庫存調整和較低的 SSD 解決方案銷售後的 UFS 控制器銷售。

Fourth quarter gross margin should be in the range of 48% to 50%.

第四季度毛利率應該在48%到50%之間。

We expect that further contraction in SSD solutions gross margin will offset the higher sales mix and stable margins of our controllers.

我們預計 SSD 解決方案毛利率的進一步收縮將抵消我們控制器更高的銷售組合和穩定的利潤率。

We expect fourth quarter operating margin to be in the range of 19.5% to 20.5%.

我們預計第四季度營業利潤率將在 19.5% 至 20.5% 之間。

Operating expenses will increase meaningfully in the fourth quarter due to timing of R&D tape-out expenses.

由於研發流片費用的時間安排，第四季度的運營費用將顯著增加。

Our fourth quarter tape-out expenses were lighter than normal, while our fourth quarter tape-out expenses will be heavier than normal.

我們第四季度的流片費用比平時少，而我們第四季度的流片費用會比平時多。

Our overall second half tape-out expenses are at levels consistent with the first half of the year.

我們下半年的總體流片費用與上半年持平。

In the fourth quarter, we expect stock-based compensation of $8.6 million to $9.6 million, higher than in previous quarters this year but at a consistent pattern with past years due to seasonal timing of RSU brands.

在第四季度，我們預計基於股票的薪酬為 860 萬美元至 960 萬美元，高於今年前幾個季度，但由於 RSU 品牌的季節性時機，與過去幾年的模式一致。

With the expiration of certain tax benefits, we expect our effective tax rate for the fourth quarter to be higher in the 15% to 20% range.

隨著某些稅收優惠的到期，我們預計第四季度的有效稅率將在 15% 至 20% 的範圍內更高。

Next year, we expect our effective tax rate to stay within this 15% to 20% range.

明年，我們預計我們的有效稅率將保持在 15% 至 20% 的範圍內。

We have cash disbursement authorization to opportunistically repurchase our ADSs in the fourth quarter.

我們有現金支付授權，可以在第四季度機會主義地回購我們的 ADS。

Amounts ultimately repurchased will depend on the market price of our ADSs.

最終回購的金額將取決於我們美國存託憑證的市場價格。

This concludes our prepared remarks.

我們準備好的發言到此結束。

We will now open the call to your questions.

我們現在將打開您的問題的電話。

(Operator Instructions) First question is from the line of Rajvindra Gill of Needham & Company.

（操作員說明）第一個問題來自 Needham & Company 的 Rajvindra Gill。

Yes.

是的。

Congrats on good results in the third and fourth quarter.

恭喜第三節和第四節取得好成績。

Question, Wallace, regarding the acquisition of Intel's NAND business by SK Hynix.

華萊士，關於 SK 海力士收購英特爾 NAND 業務的問題。

Wanted to get your thoughts on that.

想听聽你的想法。

I know that Intel is a large customer for you on the controller side.

我知道英特爾是您在控制器方面的大客戶。

Wanted to see what management is thinking in terms of would there be any impact as SK Hynix acquires Intel's NAND business on your business?

想看看管理層是怎麼想的，因為 SK 海力士收購英特爾的 NAND 業務會對您的業務產生什麼影響？

And how we should think about that?

我們應該如何考慮？

Well, thank you for the question.

嗯，謝謝你的問題。

We are excited that our NAND trade partners are taking steps to consolidate and ensure their long-term economy viability.

我們很高興我們的 NAND 貿易夥伴正在採取措施鞏固和確保他們的長期經濟活力。

Our relationship with both are long and well-established and stronger than ever.

我們與兩者的關係由來已久、根深蒂固，而且比以往任何時候都更加牢固。

It is in our interest to see them more profitable and cover their opportunity costs so they are incentivized to continue investing in NAND into the future.

看到他們獲得更多利潤並彌補他們的機會成本符合我們的利益，因此他們有動力在未來繼續投資 NAND。

As everybody know, Intel leads the industry in QLC NAND technology and supply significant more QLC than any other NAND maker.

眾所周知，英特爾在 QLC NAND 技術方面處於行業領先地位，提供的 QLC 數量遠遠超過任何其他 NAND 製造商。

This is a significant technology edge, and Hynix will be acquiring the QLC leadership.

這是一個重要的技術優勢，海力士將獲得 QLC 的領導地位。

In terms of controlling QLC NAND today, our QLC controller technology is likely the best in the industry.

在今天控制 QLC NAND 方面，我們的 QLC 控制器技術可能是業內最好的。

All of Intel client SSDs use QLC NAND and our controller technology.

所有英特爾客戶端固態硬盤都使用 QLC NAND 和我們的控制器技術。

Given our unmatched QLC controller leadership and track record, we are confident we will more than likely continue supplying controller to them after the acquisition closed.

鑑於我們無與倫比的 QLC 控制器領導地位和業績記錄，我們相信在收購完成後我們很可能會繼續向他們提供控制器。

Okay.

好的。

And the rebound that you're seeing in SSDs going into Q4, how would you characterize kind of NAND pricing environment now?

您在第四季度看到的 SSD 反彈，您如何描述現在的 NAND 定價環境？

You mentioned that there's more availability of NAND as hyperscalers have started recruitment.

您提到隨著超大規模企業開始招聘，NAND 的可用性越來越高。

I wanted to get a sense in terms of what the NAND pricing is looking like in Q4 and how should we think about that in terms of calendar '21.

我想了解一下第四季度 NAND 定價的情況，以及我們應該如何根據日曆 '21 考慮這一點。

And along those lines, how do we think about the attach rates for client SSDs but also kind of movement into desktops and gaming?

沿著這些思路，我們如何考慮客戶端 SSD 的附加率以及進入台式機和遊戲的某種程度的移動？

I think, first, regarding the pricing, NAND pricing is showing some signs of stabilization.

我認為，首先，關於定價，NAND 定價顯示出一些穩定的跡象。

We believe the fourth quarter price may be down in the mid-single-digit percentage range.

我們認為第四季度的價格可能會在中等個位數百分比範圍內下降。

We are hearing about plan for stronger CapEx spending by the NAND flash maker next year, which could lead to stronger industry supply growth and larger supplier of lower cost next-generation NAND supply.

我們聽說這家 NAND 閃存製造商明年計劃增加資本支出，這可能會導致更強勁的行業供應增長和更大的低成本下一代 NAND 供應商。

We have been seeing for many years and consistent with our thesis, client SSD sales benefiting from increasing NAND supply, lower NAND prices and the related price elasticity of demand.

多年來，我們一直看到客戶 SSD 銷售受益於 NAND 供應增加、NAND 價格下降以及相關的需求價格彈性，這與我們的論點一致。

And we believe next year, NAND price should be also stabilized.

而且我們相信明年，NAND 的價格應該也會趨於穩定。

But we don't have a really clear picture regarding NAND price trend in 2021.

但我們對 2021 年 NAND 價格趨勢並沒有真正清晰的了解。

And Raji, to your second part of your question, yes, relating to our market opportunity, our client SSD market opportunity.

Raji，關於你問題的第二部分，是的，與我們的市場機會，我們的客戶 SSD 市場機會有關。

As you know, based on third-party research like Gartner, the PC OEM SSD market last year was about 160 million units and is expected to -- is forecast to grow about 15% this year, with SSD adoption increasing from 60% to 75%.

如您所知，根據 Gartner 等第三方研究，去年 PC OEM SSD 市場約為 1.6 億台，預計今年將增長約 15%，SSD 的採用率將從 60% 增加到 75% %。

Obviously, the adoption is much higher with notebook PCs versus desktop.

顯然，與台式機相比，筆記本電腦的採用率要高得多。

But for both segments, they are still increasing, and there are still room for further displacement of hard disk drives and use of SSDs.

但對於這兩個部分，它們仍在增加，並且仍有進一步取代硬盤驅動器和使用SSD的空間。

Additionally, you also have the channel market.

此外，您還有渠道市場。

Forward Insights, for example, estimates that the channel market for SSD is about 120 million units.

例如，Forward Insights估計SSD的渠道市場約為1.2億台。

The channel market is obviously more inherently volatile and more difficult to predict.

渠道市場顯然更具有內在的波動性，更難以預測。

But in the third quarter, we saw solid demand from both OEMs and channel customers, which were better than expected.

但在第三季度，我們看到來自 OEM 和渠道客戶的強勁需求，好於預期。

So overall, we believe the client SSD market should grow about 5% to 10%.

因此，總體而言，我們認為客戶端 SSD 市場應增長約 5% 至 10%。

And for us, year-to-date, we've been growing over 20% year-to-date.

對於我們來說，年初至今，我們已經增長了 20% 以上。

Next question is from the line of Karl Ackerman of Cowen.

下一個問題來自 Cowen 的 Karl Ackerman。

Two questions, if I may.

兩個問題，如果可以的話。

Just first one is a clarification.

第一個是澄清。

I was hoping you could provide a little bit more color on your commentary, Riyadh, about the expectation for your Ferri solutions business.

我希望你能在你的評論中提供更多色彩，Riyadh，關於你對 Ferri 解決方案業務的期望。

I think you said it was going to perhaps decline in the fourth quarter.

我想你說過它可能會在第四季度下降。

I was hoping you could expand a little bit about that, both in the fourth quarter and as you think about calendar 2020.

我希望你能在第四季度和你考慮 2020 日曆時對此進行一些擴展。

And I have a follow-up.

我有一個後續行動。

Well, overall, for the fourth quarter, we're expecting our SSD solutions to decline sequentially.

嗯，總的來說，對於第四季度，我們預計我們的 SSD 解決方案將連續下降。

So the decline sequentially, SSD solutions in the fourth quarter, this is the result of -- on the Shannon side, the -- our Alibaba project ending seasonally at the end of Q3.

因此，第四季度 SSD 解決方案連續下降，這是香農方面的結果，我們的阿里巴巴項目在第三季度末季節性結束。

So we will not benefit from having Alibaba revenue in Q4.

所以我們不會從第四季度的阿里巴巴收入中受益。

Additionally, for other Shannon as well as Ferri products, we're facing more competitive dynamics, and so this is leading to our overall SSD solutions to be down in the fourth quarter.

此外，對於其他 Shannon 和 Ferri 產品，我們面臨著更多的競爭動態，因此這導致我們的整體 SSD 解決方案在第四季度出現下滑。

Okay.

好的。

As a follow-up, one of your merchant SSD controller peers has spoken quite extensively about winning designs for custom SSD controllers to U.S. hyperscale providers.

作為後續行動，您的一位商業 SSD 控制器同行已經廣泛地談到了為美國超大規模供應商贏得定制 SSD 控制器的設計。

What are your plans to drive toward leading-edge silicon for your enterprise SSD controller designs?

您計劃如何推動企業 SSD 控制器設計採用領先的矽技術？

And do you think your capability to support PCIe 4.0 creates greater opportunity for you to address the merchant market for enterprise SSD controller designs beyond the programs you spoke about with Alibaba?

你認為你支持 PCIe 4.0 的能力是否為你創造了更大的機會來解決企業 SSD 控制器設計的商業市場，而不是你與阿里巴巴談到的項目？

Yes.

是的。

We are currently actually in engineering the next-generation of enterprise SSD controller PCIe Gen 5. This will have a very unique architecture with many, many technological invention into the design.

我們目前實際上正在設計下一代企業級 SSD 控制器 PCIe Gen 5。這將有一個非常獨特的架構，在設計中融入了許多很多技術發明。

We have dedicated ASIC team, dedicated firmware team.

我們有專門的ASIC團隊，專門的固件團隊。

We have dedicated architecture for both ASIC and firmware.

我們有專用的 ASIC 和固件架構。

And we have a complete [new C] modeling team.

我們有一個完整的 [new C] 建模團隊。

This really will be a state-of-the-art technology, and will positioned to be the leading product for PCIe Gen 5, which will be available in 2022.

這確實將是一項最先進的技術，並將定位為 PCIe Gen 5 的領先產品，該產品將於 2022 年上市。

And I think in the meantime, we're also seeing good traction of our current enterprise SSD controller, which is using our Ali Open Channel SSD, and in Kingston data center and other major enterprise customers.

我認為與此同時，我們也看到我們當前的企業級 SSD 控制器（使用我們的 Ali Open Channel SSD）以及金士頓數據中心和其他主要企業客戶的良好牽引力。

They're going to be ramping very sharply in 2021.

他們將在 2021 年急劇增長。

Our U.S. customers have been using our controller to build enterprise-grade SSD for leading U.S. server OEMs since late last year.

自去年底以來，我們的美國客戶一直在使用我們的控制器為領先的美國服務器 OEM 製造企業級 SSD。

So we are in good progress, and we believe our new product will be stronger and take a leading position.

所以我們進展順利，我們相信我們的新產品會更強大並佔據領先地位。

Next question is from the line of Anthony Stoss of Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Anthony Stoss。

Nice execution.

執行力不錯。

A couple of questions here.

這裡有幾個問題。

You're talking about your returning Korean customer, and Wallace, I think you mentioned multiple design wins.

你說的是你的韓國回頭客，華萊士，我想你提到了多項設計勝利。

Can you help quantify that a little bit more and maybe put a number on the number of design wins or how big you think the opportunity is?

您能否幫助量化更多一點，並可能在設計獲勝的數量或您認為機會有多大上給出一個數字？

Moreover, do you think that they could also return like they had in the past on the smartphone side?

此外，您認為他們是否也可以像過去那樣在智能手機端回歸？

And then maybe 2 for you, Riyadh.

然後也許 2 給你，利雅得。

Can you maybe put a more of a time line on the 3 Alibaba projects?

您能否為這 3 個阿里巴巴項目制定更多的時間表？

Do they all kick off at once?

他們都同時開始嗎？

Are they spread over March, June and September?

它們分佈在三月、六月和九月嗎？

And then lastly, Riyadh, can you just give us the Q4, the expected tape-out expense?

最後，利雅得，你能給我們 Q4，預期的流片費用嗎？

Yes.

是的。

For UFS project, just for our first UFS NAND customers, and really that's because of some multiple generation of NAND and with a different controller, for example, UFS 2.1; and we have 2 different generation, UFS 3.1, for this customer to implement with 2 different generation technology of NAND.

對於 UFS 項目，僅針對我們的第一批 UFS NAND 客戶，這實際上是因為一些多代 NAND 和不同的控制器，例如 UFS 2.1；我們有 2 代不同的 UFS 3.1，供該客戶使用 2 代不同的 NAND 技術來實施。

For our second UFS customers, NAND customer, is similar trend because the UFS 3.1, just like UFS 2.1, is going to ramp for the next 3 to 4 years.

對於我們的第二個 UFS 客戶，NAND 客戶，也是類似的趨勢，因為 UFS 3.1 就像 UFS 2.1 一樣，將在未來 3 到 4 年內逐步增加。

That's why they're going to adopt for different generation NAND and for different generation mobile DRAM and create a different multiple project.

這就是為什麼他們要採用不同代的 NAND 和不同代的移動 DRAM 並創建不同的多個項目。

That's why we position this relationship in business is going to last for multiple years.

這就是為什麼我們將這種業務關係定位為將持續多年。

Tony, to your questions, first, relating to our tape-out expenses.

托尼，關於你的問題，首先是關於我們的流片費用。

Our Q3 tape-out expenses is significantly lighter than they were in the first -- in Q1 and Q2 of this year and certainly will be lighter than in the fourth quarter.

我們第三季度的流片費用明顯低於第一季度 - 今年第一季度和第二季度，而且肯定會低於第四季度。

Tape-out expenses for us have been running about $7 million to $8 million per quarter in Q1 and Q2.

第一季度和第二季度，我們的流片費用每季度約為 700 萬至 800 萬美元。

And in Q3, for us, we do not have any new tape-out, so operating expenses was, therefore, much lower than they were in the previous 2 quarters.

在第三季度，對我們來說，我們沒有任何新的流片，因此運營費用比前兩個季度低得多。

In Q4, however, our tape-out expenses will be heavier.

然而，在第四季度，我們的流片費用將會增加。

But overall, our first quarter -- our first half 2020 tape-out and related expenses are going to be similar to what we're going to be seeing in the second half of this year.

但總的來說，我們的第一季度——我們 2020 年上半年的流片和相關費用將與我們將在今年下半年看到的類似。

To your other question, Tony, if you could, could you repeat your second question again?

關於你的另一個問題，托尼，如果可以的話，你能再重複你的第二個問題嗎？

Sure.

當然。

On Alibaba, the 3 projects, do they all commence at the same time?

阿里巴巴這3個項目是同時啟動的嗎？

Are they spread out throughout 2021?

它們是否分佈在整個 2021 年？

And then maybe, Wallace, you misunderstood my question.

然後也許，華萊士，你誤解了我的問題。

On the returning Korean customer for SSD design wins, kind of the -- you talked about multiple design wins.

關於贏得 SSD 設計勝利的韓國回頭客，您談到了多項設計勝利。

Can you quantify that a little bit more?

你能再量化一點嗎？

Yes.

是的。

This is our Korean customer for SSD, also including 1 or 2 different PCIe Gen 4 controller with a different type of NAND, including both TLC and QLC.

這是我們的 SSD 韓國客戶，還包括 1 或 2 個不同的 PCIe Gen 4 控制器和不同類型的 NAND，包括 TLC 和 QLC。

The revenue benefits will be a multiple-year benefit.

收入收益將是多年收益。

Our products will start going into production mid of next year and will scale -- and scale even more meaningfully in the following year.

我們的產品將於明年年中開始投入生產，並將擴大規模——並在下一年擴大規模甚至更有意義。

So you should expect good things out of our program with this Korean customer.

因此，您應該期待我們與這位韓國客戶的計劃能帶來好結果。

To your question about Alibaba, we currently still do not have a dollar sales procurement forecast from Alibaba.

關於你關於阿里巴巴的問題，我們目前還沒有來自阿里巴巴的美元銷售採購預測。

What we do have are 3 projects that we've been working on.

我們所擁有的是我們一直在從事的 3 個項目。

This is 2 projects more than what we've been working on for -- what we've been delivering this year.

這比我們一直在努力的項目多了 2 個項目——我們今年交付的項目。

This year, we have 1 project that is equivalent to less than 5% of Alibaba's overall petabyte procurement relating to their SSDs.

今年，我們有 1 個項目，相當於阿里巴巴 SSD 採購總量的不到 5%。

Next year, we believe the petabyte procurements are continuing -- will continue to rise.

明年，我們相信 PB 級的採購將繼續——將繼續上升。

And so based on 3 projects, we believe our share of Alibaba's overall procurement should be much higher than the share from 1 project.

所以以3個項目來看，我們認為我們在阿里巴巴整體採購中的份額應該遠高於1個項目的份額。

Next question is from the line of Mehdi Hosseini of SFG.

下一個問題來自 SFG 的 Mehdi Hosseini。

Yes.

是的。

My first one is for Wallace.

我的第一個是給華萊士的。

I'm looking at your guide for the December quarter.

我正在查看您的 12 月季度指南。

And next calendar year, revenue is up 18% on a year-over-year basis, but no leverage in operating margin.

下一個日曆年，收入同比增長 18%，但營業利潤率沒有影響。

If I just take the midpoint of Q4 operating margin guide, for the whole year, you're actually going to be right around 21% operating margin despite 18% revenue growth.

如果我只採用第四季度營業利潤率指南的中點，那麼全年營業利潤率實際上將達到 21% 左右，儘管收入增長了 18%。

I look back 2018, and when I compare 2020 to 2018, same trend, revenues up 6% and actually margins down 500 basis points.

回顧 2018 年，當我將 2020 年與 2018 年進行比較時，趨勢相同，收入增長 6%，實際利潤率下降 500 個基點。

And this is something that we have been trying to better understand when all of these new tape-out is going to ramp, when Shannon is going to have opening leverage.

這是我們一直在努力更好地理解的事情，當所有這些新的 tape-out 將要增加時，Shannon 將有開放的影響力。

I believe that 1 or 2 years ago, you did write-down some assets within a Shannon organization, but I still don't see any leverage.

我相信在 1 或 2 年前，您確實減記了 Shannon 組織內的一些資產，但我仍然沒有看到任何槓桿作用。

And help me understand how you're thinking about forward and the actions taken to bring some more leverage?

並幫助我了解您如何考慮前進以及為帶來更多影響力而採取的行動？

And I have a follow-up.

我有一個後續行動。

Yes.

是的。

Regarding our operating expense versus sales growth, it all depend on our -- when we do the tape-out.

關於我們的運營費用與銷售增長，這完全取決於我們 - 當我們進行流片時。

As you know, today, most of our new technology, we adopt TSMC 16 or 12 nanometer.

如你所知，今天，我們的大部分新技術，我們採用台積電 16 或 12 納米。

I think in 2022, we're going to move to 7 nanometer.

我認為到 2022 年，我們將轉向 7 納米。

So the tape-out regarding 16 or 12 nanometer, minimum amount of the initial wafer were around $3.5 million easily.

因此，關於 16 或 12 納米的流片，初始晶圓的最低金額很容易達到 350 萬美元左右。

So that is to depend when we do the tape-out.

所以這取決於我們何時進行流片。

For example, like Q3, our operating expense is less than normal quarter, but Q4 will be heavier due to the project tape-out with the 16 nanometer or 12 nanometer in TSMC.

例如，像Q3，我們的運營費用低於正常季度，但由於台積電16納米或12納米的項目流片，Q4會更重。

That's why we're definitely looking forward to a future of sales revenue growth momentum further, which will show -- see better operation margin from the operating expense.

這就是為什麼我們絕對期待未來銷售收入進一步增長的勢頭，這將表明——從運營費用中看到更好的運營利潤率。

But I guess what I'm asking is, help us understand what gives you confidence that you're going to be able to scale revenue to the point where there will be operating leverage.

但我想我要問的是，幫助我們了解是什麼讓您有信心將收入擴大到具有運營槓桿的程度。

I think we have a pretty strong confidence in 2021.

我認為我們對 2021 年充滿信心。

Our RSU product is -- as we state initially in the early this year, our RSU product line should grow.

我們的 RSU 產品是——正如我們在今年年初最初聲明的那樣，我們的 RSU 產品線應該會增長。

Unfortunately, it's a really unpredictable COVID-19 pandemic.

不幸的是，這是一場真正不可預測的 COVID-19 大流行。

But for next year, regarding the new UFS design win and the smartphone recovery, our mobile business will grow sharply.

但對於明年，關於新的 UFS 設計獲勝和智能手機復甦，我們的移動業務將大幅增長。

Our client SSD, with today's design win pipeline, we have very strong confidence.

我們的客戶 SSD，擁有今天的設計勝利管道，我們有很強的信心。

Our client SSD controller continue to grow rapidly.

我們的客戶 SSD 控制器繼續快速增長。

Our SSD solution also will benefit from China data center-based customers, including Alibaba and other leading customers.

我們的 SSD 解決方案還將受益於中國數據中心的客戶，包括阿里巴巴和其他領先客戶。

Our Ferri business will also grow in 2021.

我們的 Ferri 業務也將在 2021 年增長。

So we have pretty good confidence, next year, we shall see good and strong growth for our total sales revenue.

所以我們很有信心，明年，我們的總銷售收入將有良好而強勁的增長。

Okay.

好的。

And my follow-up is for Riyadh.

我的後續行動是針對利雅得的。

Given the confidence there is with all the new product ramp and your very strong net cash per share, why not distribute more of the cash to investors if there is such a confidence that both revenues and operating profit would scale in 2021 versus 2020?

鑑於對所有新產品的增長和你非常強勁的每股淨現金的信心，如果有信心在 2021 年與 2020 年相比，收入和營業利潤都會擴大，為什麼不向投資者分配更多現金呢？

Mehdi, that's a great question.

邁赫迪，這是一個很好的問題。

As you know, last week, our Board decided to keep our annual dividend at $1.40 per ADS.

如您所知，上週，我們的董事會決定將年度股息維持在每份 ADS 1.40 美元。

Although we are very optimistic as well as I kindly shared just a second ago regarding our growth prospects for next year, we're also very conservative in how we deploy our free cash flow.

儘管我們非常樂觀，而且我剛才親切地分享了明年的增長前景，但我們在如何部署自由現金流方面也非常保守。

We don't want to get ahead of ourselves right now.

我們現在不想超前。

With the uncertainties of the U.S. elections [delay], resurgence of COVID-19 in U.S. and Europe, escalating U.S.-China geopolitical tensions, broader global unemployment and economic issue and on and on, other issues, we believe it's important to be more conservative and stay financially flexible and have more liquidity.

隨著美國大選 [延遲] 的不確定性、美國和歐洲 COVID-19 的捲土重來、美中地緣政治緊張局勢升級、更廣泛的全球失業和經濟問題等等，我們認為更加保守是很重要的保持財務靈活性和流動性。

Next question is from the line of Suji Desilva of ROTH Capital.

下一個問題來自 ROTH Capital 的 Suji Desilva。

Wallace, Riyadh, so the -- I wanted to get a sense of the SSD controller share you guys have now.

華萊士、利雅得，所以——我想了解一下你們現在共享的 SSD 控制器。

And how you think about the opportunity for the share -- your share in SATA versus the new PCIe opportunity going forward?

您如何看待份額的機會——您在 SATA 中的份額與未來新的 PCIe 機會？

Yes.

是的。

So we calculate internally, and with some [analysts], we believe we're around 1/3 of the market share today.

所以我們在內部計算，並且與一些[分析師]一起，我們相信我們今天的市場份額約為 1/3。

SATA controller, and it was going to stay, but the PCIe controller is going to grow rapidly next year.

SATA 控制器，它會保留下來，但 PCIe 控制器將在明年快速增長。

2021, the major driver for client SSD is PCIe Gen 3. Initially, from mid of next year, PCIe Gen 4 will start to ramp, but the volume is still relatively small.

2021年，客戶端SSD的主要驅動力是PCIe Gen 3。最初，從明年年中開始，PCIe Gen 4將開始量產，但量仍然相對較小。

But we believe 2022, our PCIe Gen 4 program will all ramp up and will align with the Intel Alder Lake platform, which will create even much stronger momentum to grow our client SSD due to the higher ASP and better picture for the growth momentum.

但我們相信，到 2022 年，我們的 PCIe Gen 4 計劃將全部加速，並將與英特爾 Alder Lake 平台保持一致，由於更高的 ASP 和更好的增長勢頭，這將為我們的客戶端 SSD 的增長創造更強勁的動力。

So we think we'll continue and expand.

所以我們認為我們會繼續並擴大。

We might gain more market share in 2021 and 2022.

我們可能會在 2021 年和 2022 年獲得更多的市場份額。

Okay.

好的。

And then my other question perhaps for Riyadh.

然後我的另一個問題可能是針對利雅得的。

The SSD ASP, has that been stable with the mix of OEM and channel moving around here versus the higher-channel products versus the lower-priced ones?

SSD ASP，隨著 OEM 和渠道的混合，相對於高渠道產品和低價產品，它是否穩定？

Any color there would be helpful.

那裡的任何顏色都會有所幫助。

Sure, sure.

一定一定。

Our ASPs have always been stable.

我們的 ASP 一直很穩定。

We have newer products like the PCIe Gen 4 products that are coming in.

我們有更新的產品，例如即將推出的 PCIe Gen 4 產品。

These are premium products, so the ASPs and margins are always going to be more attractive for these premium products.

這些是優質產品，因此這些優質產品的平均售價和利潤率總是更具吸引力。

While our older products like the SATA 3 projects -- products, the ASPs have been declining and will likely continue to decline.

雖然我們的舊產品（如 SATA 3 項目）產品的 ASP 一直在下降，而且可能會繼續下降。

But overall, by having the mix of new products and old products, we've been able to manage our overall blended ASPs at pretty stable basis, helping us preserve -- which also helps us preserve our gross profitability.

但總的來說，通過混合使用新產品和舊產品，我們已經能夠在相當穩定的基礎上管理我們的整體混合 ASP，幫助我們保持 - 這也有助於我們保持我們的毛利潤率。

Next question is from the line of Craig A. Ellis of B. Riley Securities.

下一個問題來自 B. Riley Securities 的 Craig A. Ellis。

I just wanted to first follow-up on the eMMC+

我只想先跟進eMMC+

UFS business.

UFS業務。

So it's nice to see your customer working through an inventory issue.

所以很高興看到您的客戶解決庫存問題。

But if my model is correct, it seems like fourth quarter revenue could still be about 1/3 lower than what we were seeing before the inventory correction issue.

但如果我的模型是正確的，那麼第四季度的收入似乎仍可能比我們在庫存修正問題之前看到的低 1/3 左右。

So the question is, with 5G units very strong and with UFS penetration increasing significantly next year, do you feel like you have visibility for that business to get back to prior highs?

所以問題是，隨著明年 5G 單元非常強勁並且 UFS 滲透率顯著增加，您是否認為該業務能恢復到先前的高位？

And if so, do you feel like you then can exceed this next year just given UFS adoption trend?

如果是這樣，你覺得你明年可以超越 UFS 的採用趨勢嗎？

So the question is really the calendar '21 outlook for UFS.

所以問題實際上是 UFS 的日曆 '21 展望。

Well, we saw a broad-based smartphone industry shipment recovery in Q3 from both large and small OEMs.

好吧，我們在第三季度看到大型和小型 OEM 廠商的智能手機行業出貨量普遍復甦。

We've been seeing positive trends continue in Q4.

我們一直看到第四季度繼續保持積極趨勢。

Current indications from our conversation with suppliers up and down the supply chain suggests good smartphone recovery next year.

從我們與供應鏈上下游供應商的對話來看，目前的跡象表明，明年智能手機將迎來良好的複蘇。

So for us, our -- with our U.S. NAND UFS customer, we benefited -- they've been benefiting from the rebound in smartphone shipments in Q3.

因此，對我們來說，我們——我們的美國 NAND UFS 客戶，我們從中受益——他們一直受益於第三季度智能手機出貨量的反彈。

They're making good progress managing down their UFS inventory and have placed a meaningfully larger UFS controller sales with us in Q4.

他們在管理他們的 UFS 庫存方面取得了良好進展，並在第四季度向我們展示了一個有意義的更大的 UFS 控制器銷售。

Our UFS and eMMC controller sales are making good progress towards recovery in the fourth quarter.

我們的 UFS 和 eMMC 控制器銷售在第四季度朝著復甦方向取得了良好進展。

We may not be fully recovered compared to prior quarters, but we're making very good progress getting to where we previously were.

與前幾個季度相比，我們可能沒有完全恢復，但我們在達到之前的水平方面取得了很好的進展。

And certainly, in upcoming quarters, we're going to be growing even to higher levels than what we had previously achieved in past quarters.

當然，在接下來的幾個季度，我們的增長甚至會達到比過去幾個季度更高的水平。

We do have a full...

我們確實有一個完整的...

Go ahead.

前進。

So we do have a full 2021 forecast from the customer.

所以我們確實從客戶那裡得到了 2021 年的完整預測。

So the forecast looking very strong in 2021.

因此，2021 年的預測看起來非常強勁。

If everything is on track, I think we shall really fully recover in 2021.

如果一切順利，我認為我們將在 2021 年真正完全恢復。

And with additional, see, NAND makers ramp by -- in middle of 2021, we shall see much better outlook for 2021 for UFS revenue.

此外，看到，NAND 製造商在 2021 年年中增加，我們將看到 2021 年 UFS 收入的前景要好得多。

Okay.

好的。

That's helpful.

這很有幫助。

And then the follow-up is really going back to Mehdi's question, and I think it's a question regarding the growth of the business that a lot of investors are focused on.

然後後續真的回到了邁赫迪的問題，我認為這是一個關於許多投資者關注的業務增長的問題。

And I'll try and position it this way.

我將嘗試以這種方式定位它。

As the company looks at calendar '21's growth potential, and clearly, across every segment, there are a number of growth drivers, maybe you can help us by ranking from what you see today -- not looking for specific guidance, but ranking from what you see today, your segments, which would give us the greatest dollar growth next year?

當公司審視 calendar '21 的增長潛力時，很明顯，在每個細分市場中，都有許多增長動力，也許你可以通過根據你今天看到的排名來幫助我們——不是尋找具體的指導，而是根據您今天看到，您的細分市場明年會給我們帶來最大的美元增長嗎？

SSD controllers, eMMC+

SSD 控制器、eMMC+

UFS versus SSD solutions?

UFS 與 SSD 解決方案？

And which do you think could give us the best percentage growth?

您認為哪個可以給我們帶來最好的百分比增長？

I think from the dollar and percentage of a mobile controller, our eMMC+UFS controller business, 2021, will give us the most dollar growth as well as percentage growth.

我認為從移動控制器的美元和百分比來看，我們的 eMMC+UFS 控制器業務，2021 年，將為我們帶來最大的美元增長和百分比增長。

And this will be followed by our SSD controllers.

接下來是我們的 SSD 控制器。

Our SSD controllers is by far, much larger, so we are operating from a much larger base.

到目前為止，我們的 SSD 控制器要大得多，因此我們在更大的基礎上運營。

Our SSD controllers are 50%, 60% of our total revenue last year.

我們的 SSD 控制器占我們去年總收入的 50%、60%。

So from this larger base, it's also much harder to grow at the rate that our -- the percentage growth rate that our mobile eMMC+

因此，從這個更大的基數來看，以我們的移動 eMMC+ 的百分比增長率增長也更加困難

UFS will be able to carry itself.

UFS 將能夠自行攜帶。

But that said, we're also expecting strong sales, dollar-wise, in calendar 2021 from our SSD controllers.

但話雖如此，我們也預計我們的 SSD 控制器在 2021 日曆年的銷售額將以美元計算。

And then thirdly, growth from our SSD solutions.

第三，來自我們 SSD 解決方案的增長。

And if I could ask a follow-up to that, Riyadh, is there any change strategically as the company looks at SSD solutions, just given the comments you had earlier in the call regarding pricing, regarding margins for what you've seen as you've gone through mid-calendar '20?

如果我可以問一下，利雅得，在公司考慮 SSD 解決方案時，戰略上是否有任何變化，只是考慮到你早些時候在電話會議上對定價的評論，關於你所看到的利潤率經歷過 20 年中期？

Strategically, for our Shannon and Ferri products, we've been focusing on ways to bring more value from what we already have relating to controllers.

從戰略上講，對於我們的 Shannon 和 Ferri 產品，我們一直專注於從我們已經擁有的與控制器相關的產品中帶來更多價值的方法。

We have our core competency relating to controllers.

我們擁有與控制器相關的核心競爭力。

What else can we add to bring more value to our shareholders?

我們還能增加什麼來為我們的股東帶來更多價值？

With our Ferri products, we have existing controllers.

對於我們的 Ferri 產品，我們有現有的控制器。

They are underserviced markets relating to the industrials, automotive and office automation.

它們是與工業、汽車和辦公自動化相關的服務不足的市場。

These are under-serviced by module makers and the flash makers, which creates an opportunity for us to bring differentiated products with custom firmware to customers and therefore, broadening the overall NAND market.

這些模塊製造商和閃存製造商的服務不足，這為我們創造了一個機會，可以為客戶提供帶有定制固件的差異化產品，從而擴大整個 NAND 市場。

With the Shannon product, the strategic angle for us is to accelerate our jump into the enterprise market to go from a client-centric product focus to one where we're very quickly in the weeds of the data center hyperscaler market and quickly generating street credibility with our products.

借助 Shannon 產品，我們的戰略角度是加速進入企業市場，從以客戶為中心的產品重點轉變為我們很快涉足數據中心超大規模市場並迅速產生街頭信譽的產品與我們的產品。

So [control to that], but at the same time, generating incremental value-added from the design services that we provide to Alibaba for Open Channel technology.

所以[控制]，但同時，從我們為阿里巴巴提供的開放通道技術設計服務中產生增量增值。

Next question is from the line of Gokul Hariharan of JPMorgan.

下一個問題來自摩根大通的 Gokul Hariharan。

My first question is on SSD controller.

我的第一個問題是關於 SSD 控制器。

I think it looks like we have continued to gain market share this year.

我認為今年我們似乎繼續獲得市場份額。

Could we talk a little bit about what is the visibility of market share gains that we have going into the next couple of years given your design pipeline?

考慮到您的設計管道，我們能否談談未來幾年市場份額增長的可見性？

And I think, previously, you had talked about potentially getting into game consoles as a new market opportunity.

而且我認為，之前，您曾談到可能將進入遊戲機作為一個新的市場機會。

Do we have any line of sight into that when we think about 2021 or 2022?

當我們考慮 2021 年或 2022 年時，我們是否對此有任何看法？

Second question is back to -- there is a lot of conversation about the change or no change in supply chain as a result of the consolidation in the NAND flash side.

第二個問題回到——由於 NAND 閃存方面的整合，有很多關於供應鏈變化或沒有變化的討論。

Could you talk a little bit about -- for your Korean customer on SSD controllers, is your engagement primarily to do with QLC NAND?

您能否談談——對於您的 SSD 控制器韓國客戶，您的參與主要是與 QLC NAND 相關嗎？

Or does it encompass both TLC as well as QLC NAND from their side?

或者它是否同時包含 TLC 和 QLC NAND？

Let me just answer your first question.

我只回答你的第一個問題。

Our current client SSD market share is around 33%.

我們目前的客戶端 SSD 市場份額約為 33%。

Our long-term goal is 40% and probably a little higher.

我們的長期目標是 40%，可能會更高一點。

From design pipeline, we believe we have a strong confidence to do so.

從設計流水線來看，我們相信我們有很強的信心這樣做。

The reason is that we have a very strong PC OEM appearance today.

原因是我們今天有一個非常強大的 PC OEM 外觀。

For example, we have the 4 customers, including both NAND and module makers, provide solution to Lenovo.

例如，我們有4家客戶，包括NAND和模塊製造商，為聯想提供解決方案。

We have also 4 different customer provide solution to Dell and HP.

我們也有 4 個不同的客戶向 Dell 和 HP 提供解決方案。

So we have a very strong position from the broad base to provide solutions to the customer.

因此，我們擁有廣泛的基礎，可以為客戶提供解決方案。

Second is, as we mentioned, we have a 5 PCIe Gen 5 design wins from NAND makers.

其次，正如我們提到的，我們從 NAND 製造商那裡贏得了 5 個 PCIe Gen 5 設計。

One is new with some Korean customer.

一個是一些韓國客戶的新客戶。

And this will give us new really [dilemma] to grow our client SSD to a different level.

這會給我們帶來新的真正 [困境] 來將我們的客戶端 SSD 提升到一個不同的水平。

And this has become mainstream client SSD with the vendors that will design -- use both TLC and QLC.

這已經成為供應商設計的主流客戶端 SSD——同時使用 TLC 和 QLC。

By the way, in addition, from the acquisition by SK Hynix, after the acquisition, as you can see, that really give a tremendous benefit for Intel QLC growth as well as the Korean, their own TLC or their QLC.

順便說一下，此外，從 SK 海力士的收購來看，收購之後，正如你所看到的，這確實為英特爾 QLC 的增長以及韓國、他們自己的 TLC 或他們的 QLC 帶來了巨大的好處。

We don't know what return will be, but that gives tremendous financial growth and market share for them to grow into a much bigger level.

我們不知道回報會是多少，但這會帶來巨大的財務增長和市場份額，讓他們成長到更高的水平。

So we will benefit because we have programs in there like today, then we can continue to grow with their market share growth.

所以我們會受益，因為我們有像今天這樣的項目，然後我們可以隨著他們市場份額的增長而繼續增長。

And with our relationship with Kingston, continued growth into multiple projects, we believe that give us much more benefit to grow beyond the channel as well as the Kingston also penetrating the PC OEM.

憑藉我們與金士頓的關係，在多個項目中的持續增長，我們相信這會給我們帶來更多好處，讓我們超越渠道，同時金士頓也滲透到 PC OEM 中。

They will become a strong provider for top 3 PC OEM for 2021.

他們將成為 2021 年前 3 名 PC OEM 的強大供應商。

That give us really the horizon for such a high-confident visibility to grow beyond 33% in 2020.

這讓我們真正看到了在 2020 年這種高度自信的可見性增長超過 33% 的前景。

Got it.

知道了。

Can you also talk a little bit about game console as an opportunity?

您能否也藉此機會談談遊戲機？

What is the visibility we have on that?

我們對此有何了解？

Yes.

是的。

Regarding the game console, some of our new PCIe Gen 4 NAND customers are targeting game console and are engineering for upcoming OEM refresh projects.

關於遊戲機，我們的一些新的 PCIe Gen 4 NAND 客戶正在瞄準遊戲機，並且正在為即將到來的 OEM 更新項目進行工程設計。

Our new PCIe Gen 4 controllers, which is optimized for Gen 4 performance versus early Gen 4 solution, positioning us very well with these customers.

我們新的 PCIe Gen 4 控制器與早期的 Gen 4 解決方案相比針對 Gen 4 性能進行了優化，使我們在這些客戶中佔據了很好的位置。

We are not in the current game console rollout today, but our NAND customers are targeting upcoming product refresh.

我們今天沒有推出當前的遊戲機，但我們的 NAND 客戶正在瞄準即將推出的產品更新。

Ladies and gentlemen, that concludes today's question-and-answer session.

女士們，先生們，今天的問答環節到此結束。

Now I'd like to hand the call back to Mr. Wallace Kou for closing remarks.

現在我想把電話轉回 Wallace Kou 先生作結束語。

Please go ahead.

請繼續。

Thank you, everyone, for joining us today and for your continued interest in Silicon Motion.

感謝大家今天加入我們，感謝您對 Silicon Motion 的持續關注。

I would like to leave you with some final thoughts.

我想給你留下一些最後的想法。

This year has been challenging and unpredictable from the perspective of managing our business.

從管理我們的業務的角度來看，今年是充滿挑戰和不可預測的一年。

The pandemic sharply reduced our sales visibility, as China went to lockdown in Q1 and the rest of the world followed in Q2.

隨著中國在第一季度進入封鎖狀態，世界其他地區在第二季度緊隨其後，這一流行病大大降低了我們的銷售能見度。

Unexpected demand from the working and learning from home temporarily affecting our client SSD controller business in Q2 [unfortunately] led to our large UFS customer to temporarily overbuild inventory, which affected us in Q3.

在家工作和學習的意外需求暫時影響了我們在第二季度的客戶 SSD 控制器業務 [不幸的是] 導致我們的大型 UFS 客戶暫時積壓了庫存，這影響了我們在第三季度的表現。

Nevertheless, we managed our business flexibly and continued to deliver solid results.

儘管如此，我們靈活地管理我們的業務並繼續取得穩固的成果。

Our Q3 year-to-date sales are up 33% year-over-year, and earnings per ADS are up 45% year-over-year.

我們今年第三季度的銷售額同比增長 33%，每 ADS 收益同比增長 45%。

We believe these are good results despite challenging environment.

我們相信，儘管環境充滿挑戰，但這些都是好的結果。

We continue to build our foundation for further growth and look forward to next year.

我們繼續為進一步發展奠定基礎，並期待明年。

We will be attending several virtual investor conference through year-end, the schedule of which will be posted on our Investor Relations website.

我們將在年底前參加幾次虛擬投資者會議，會議日程將發佈在我們的投資者關係網站上。

Thank you for your continued interest and for listening to our call.

感謝您一直以來的關注和聆聽我們的電話。

Stay safe.

注意安全。

Goodbye for now.

暫時再見。

Thank you.

謝謝。

Ladies and gentlemen, that concludes our conference for today, and thank you for participating.

女士們，先生們，我們今天的會議到此結束，感謝您的參與。

You may now all disconnect.

您現在可能會全部斷開連接。