慧榮科技 (SIMO) 2024 Q4 法說會逐字稿

Good day and thank you for standing by.

您好，感謝您的支持。

Welcome to Silicon Motion Technology Corporation's fourth-quarter 2024 earnings conference call.

歡迎參加慧榮科技股份有限公司 2024 年第四季財報電話會議。

At this time, all participants are on a listen-only mode.

此時，所有參與者都處於只聽模式。

After the speakers' presentation, there will be a question-and-answer session.

演講者演講結束後，將有問答環節。

(Operator Instructions)

（操作員指令）

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 條所定義的前瞻性陳述。

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以及我們未來的經營業績、財務狀況和業務前景的陳述。

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

其他此類聲明基於我們自己的資訊以及我們認為可靠的其他來源的信息，您不應過分依賴它們。

These statements involve risks and uncertainties and actual market trends.

這些聲明涉及風險和不確定性以及實際的市場趨勢。

And our results may differ materially from those expressed or implied in these following statements for a variety of reasons.

由於各種原因，我們的結果可能與以下陳述中表達或暗示的結果有重大差異。

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

潛在風險和不確定性包括但不限於半導體產業持續的競爭壓力以及這些壓力對多媒體消費電子產品技術和消費者需求的不可預測變化的影響；計劃的狀態以及我們與主要客戶的關係的任何變化；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.

我們不承擔更新僅適用於本次電話會議之日的任何前瞻性陳述的義務。

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄音。

It is now my pleasure to hand you over to Mr. Tom Sepenzis, Senior Director of IR and Strategy.

現在我很高興將您交給投資者關係和策略高級總監 Tom Sepenzis 先生。

Please go ahead, sir.

先生，請繼續。

Thank you, operator.

謝謝您，接線生。

Good morning, everyone, and welcome to Silicon Motion's fourth-quarter 2024 financial results conference call and webcast.

大家早安，歡迎參加 Silicon Motion 2024 年第四季財務業績電話會議和網路廣播。

Joining me today is Wallace Kou, our President and CEO; and Jason Tsai, our CFO.

今天與我一起出席的是我們的總裁兼執行長 Wallace Kou；以及我們的財務長 Jason Tsai。

Wallace will first provide a review of our key business developments.

華萊士將首先回顧我們的主要業務發展。

And then Jason will discuss our fourth-quarter results and outlook following our prepared remarks.

然後 Jason 將根據我們準備好的發言討論我們的第四季度業績和展望。

We will conclude with a Q&A session.

我們將以問答環節結束。

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

在我們開始之前，我想提醒大家注意我們在本次電話會議開始時所宣讀的安全港政策。

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

有關投資我們的證券所涉及的風險的全面概述，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 was 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，請參閱我們昨日收盤後以 6-K 表形式提交的新聞稿。

This webcast will be available for replay in the investor Relations section of our website for a limited time to enhance investors' understanding of our ongoing economic performance.

這個網路廣播將在我們網站的投資者關係部分限時重播，以增強投資者對我們持續經濟表現的了解。

We will discuss non-GAAP information during this call.

我們將在本次電話會議中討論非公認會計準則資訊。

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

我們內部使用非公認會計準則財務指標來評估和管理我們的營運。

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

因此，我們選擇提供這些信息，以便您以與我們分析自身經營結果一致的方式對我們的經營結果進行比較。

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

在我們昨天發布的收益報告中可以找到 GAAP 與非 GAAP 財務數據的對帳表。

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

我們請求您結合本次通話進行審查。

With that, I will turn the call over to Wallace.

說完這些，我會把電話轉給華萊士。

Thank you, Tom.

謝謝你，湯姆。

Hello everyone and thank you for joining us today. 2024 was an exceptional year for Silicon Motion across multiple fronts.

大家好，感謝大家今天加入我們。 2024年對 Silicon Motion 來說在多個方面都是非凡的一年。

We deliver over 25% revenue growth year over year, significantly outperforming the end market we serve.

我們的收入逐年成長超過25％，遠遠超過我們所服務的終端市場。

Gross margin improved from 43% to over 46%.

毛利率從43%提高到46%以上。

And then we delivered operating margin of 15.3%, up from 11.9% in 2023 while investing heavily in next-generation solution that will expand our opportunities to have long-term share gains and a sustainable revenue growth.

然後，我們實現了 15.3% 的營業利潤率，高於 2023 年的 11.9%，同時大力投資下一代解決方案，這將擴大我們獲得長期份額增長和可持續收入增長的機會。

2024 was not without challenges.

2024年並非沒有挑戰。

However, as the consumer market saw increasing pressure in the second half of the year, weak end user demand that began in the third quarter of 2024 persisted through the fourth quarter, creating an unseasonably weak holiday season for PC and smartphones.

然而，隨著下半年消費市場壓力不斷增大，從 2024 年第三季開始的終端用戶需求疲軟一直持續到第四季度，導致 PC 和智慧型手機的假日季表現異常疲軟。

Despite this, we remain focused on our execution and (inaudible) out a number of advanced controllers for SSD and UFS, leading to significant new project wins with our flash-maker and module-maker customers.

儘管如此，我們仍然專注於我們的執行和（聽不清楚）一系列用於 SSD 和 UFS 的先進控制器，從而為我們的快閃記憶體製造商和模組製造商客戶贏得了重要的新專案。

We successfully entered the enterprise market, adding six customers and beginning initial shipment of our first new monetized product in second half of 2024.

我們成功進入企業市場，增加了六位客戶，並於 2024 年下半年開始首次出貨我們的第一款新貨幣化產品。

Additionally, we further grew our automotive business to over 5% of sales and delivering strong backlog as we enter 2025.

此外，我們的汽車業務進一步成長，佔銷售額的 5% 以上，並在進入 2025 年時實現強勁的積壓訂單。

While the smartphone and PC market will always be important, our strategy to diversify and grow our enterprise and automotive business are off to a strong start with many new projects, customers, and products expected to scale over the next few years.

雖然智慧型手機和個人電腦市場永遠很重要，但我們多元化和發展企業和汽車業務的策略已取得良好開端，預計未來幾年許多新專案、新客戶和新產品將擴大規模。

Flash makers are outsourcing more and becoming increasingly reliant on Silicon Motion, but they are being forced to rationalize spending given the increasing development cost for memory technology to support DRAM, HBM, and enterprise storage needs.

快閃記憶體製造商正在進行更多的外包，並且越來越依賴 Silicon Motion，但考慮到支援 DRAM、HBM 和企業儲存需求的記憶體技術的開發成本不斷增加，他們被迫合理化支出。

But the cost of development of a NAND controller has rapidly increased with the necessary migration to advanced process geometry solution like the 6-nanometer of SSD and UFS.

但是，隨著需要遷移到 SSD 和 UFS 的 6 奈米等先進製程幾何解決方案，NAND 控制器的開發成本迅速增加。

Flash maker decisions on controller development have become increasingly aligned with Silicon Motion as their preferred partner.

Flash 製造商對於控制器開發的決策越來越傾向於選擇 Silicon Motion 作為其首選合作夥伴。

We are working with every NAND maker and the winning multiple projects that range from eMMC and UFS controller to SSD controller for (inaudible) PCIe 4 and five-star solution as our portfolio (inaudible) enable them to scale in multiple markets faster and more cost-effectively.

我們正在與每位 NAND 製造商和中標的多個專案合作，這些項目包括從 eMMC 和 UFS 控制器到用於（聽不清楚）PCIe 4 和五星級解決方案的 SSD 控制器，因為我們的產品組合（聽不清楚）使他們能夠更快、更經濟高效地在多個市場擴展。

We have already built up a strong pipeline of new wins and expect more this year to further our share gains in 2026 and beyond.

我們已經建立了強大的新勝利管道，並期望今年能取得更多勝利，以進一步在 2026 年及以後實現份額增長。

Now let me give you an update on what we are seeing in the NAND industry.

現在讓我向您介紹一下 NAND 行業的最新情況。

With consumer demand typically weak in the second half of the last year, we are seeing consumer grade NAND pricing continue to decline while NAND makers are starting to limit supply and scale back production given the ongoing weakness in the consumer markets and the global economy uncertainty surrounding tariffs.

由於去年下半年消費需求通常較弱，我們看到消費級 NAND 價格持續下跌，而鑑於消費市場持續疲軟以及圍繞關稅的全球經濟不確定性，NAND 製造商開始限制供應併縮減產量。

We do not expect NAND prices to recover until the second half of this year When demand for both smartphone and PC are expected to rebound.

我們預計 NAND 價格要到今年下半年才會回升，屆時智慧型手機和 PC 的需求預計都會反彈。

With production cut underway in most NAND makers, the focus is to limit supply of consumer-grade NAND while still growing supply of the high-end enterprise-grade NAND where demand for enterprise and data center SSD remain healthy.

由於大多數 NAND 製造商都在減產，其重點是限制消費級 NAND 的供應，同時仍增加高端企業級 NAND 的供應，因為企業和資料中心 SSD 的需求仍然保持強勁。

For Silicon Motion, this means that we must focus our resources on NAND makers, strategic partners, and customers who have asset to NAND.

對 Silicon Motion 來說，這意味著我們必須將資源集中在 NAND 製造商、策略合作夥伴以及擁有 NAND 資產的客戶身上。

We must align our product cycles with our customer road maps and their steady progression toward each new generation of NAND.

我們必須將我們的產品週期與客戶路線圖及其向每一代新 NAND 的穩定發展保持一致。

This is critical to our long-term success, and we are investing to ensure that we remain the leading merchant controller vendors across all flash makers and end markets and applications.

這對我們的長期成功至關重要，我們正在進行投資以確保我們在所有快閃記憶體製造商和終端市場及應用領域繼續保持領先的商用控制器供應商地位。

And then continue to involve in the adoption of low-cost (inaudible) NAND drive higher densities.

然後繼續參與採用低成本（聽不清楚）NAND 驅動更高的密度。

QLC is becoming a bigger growth driver for NAND growth as they enable NAND maker to increase density without purchasing new manufacturing equipment and enable device makers to offer higher density cost-effectively.

QLC 正在成為 NAND 成長的更大成長動力，因為它們使 NAND 製造商能夠在不購買新製造設備的情況下提高密度，並使設備製造商能夠以經濟高效的方式提供更高密度。

We have more experience (inaudible) QLC than any other controller makers, whether as a merchant or captive.

我們比任何其他控制器製造商都擁有更豐富的經驗（聽不清楚），無論是作為商家還是專屬製造商。

As the consumer market begin to rebound midyear and with the ongoing strength in the enterprise and AI server markets, we expect QLC will become an increasing part of the conversation in 2025 and beyond.

隨著消費市場在年中開始反彈，以及企業和 AI 伺服器市場的持續強勁成長，我們預計 QLC 將在 2025 年及以後成為人們討論的焦點。

And Silicon Motion is in the best position to capitalize on the growth of the new technology.

而 Silicon Motion 則處於最有利的位置來利用新技術的成長。

Let me now discuss each of our major product segments beginning with our client SSD controllers.

現在讓我從客戶端 SSD 控制器開始討論我們每個主要產品領域。

For 2024, our SSD controller business grew approximately 20% as compared to 2023 and our client SSD controller market share increased to over 30% as we continue to grow our share with flash makers and (inaudible) additional sockets.

到 2024 年，我們的 SSD 控制器業務與 2023 年相比增長了約 20%，並且隨著我們繼續透過快閃記憶體製造商和（聽不清楚）額外的插槽來擴大我們的份額，我們的客戶 SSD 控制器市場份額增加到 30% 以上。

Garner expects the PC market to grow by nearly 5% this year.

加納預計今年個人電腦市場將成長近5%。

With the second half of the year much stronger than the first, driven by the sunsetting of Window 10, the approaching (inaudible) corporate PC refresh cycle, and bolstered by the increasing demand for AI PC, we are successfully gaining market share and we saw new project wins and backlog for high-performance TLC and high-reliability QLC controller with flash makers and module makers.

由於下半年的表現遠強於上半年，受到 Windows 10 的淘汰、即將到來的（聽不清楚）企業 PC 更新週期以及對 AI PC 的需求不斷增長的推動，我們成功獲得了市場份額，並且我們看到了閃存製造商和模組製造商在高性能 TLC 和高可靠性 QLC 控制器方面的新項目勝利和積壓。

We introduced our high-end 6-nanometer 8-channel PCIe 5 SSD controller last year and have secured a dominant position in the market, winning design win with four NAND makers as well as virtually every module makers.

我們去年推出了高階 6 奈米 8 通道 PCIe 5 SSD 控制器，並佔據了市場主導地位，贏得了四家 NAND 製造商以及幾乎所有模組製造商的設計勝利。

This controller delivered best-in-class performance and substantially lower power consumption than any other solution in the market.

該控制器提供了一流的性能，並且功耗比市場上任何其他解決方案都要低得多。

We are gaining share in the high-end PC market with this 8-channel controller and with the win we have amassed already.

憑藉這款 8 通道控制器以及已取得的勝利，我們正在高階 PC 市場上贏得越來越多的份額。

We believe we are on track to capture at least half of the market over the next couple of years, driving additional share gain opportunity for us.

我們相信，我們預計在未來幾年內佔領至少一半的市場，為我們帶來額外的市佔率成長機會。

We also received back the initial sample from our paper last year of our mainstream 6-nanometer 4-channel PCIe 5 controller and have made exceptional progress in securing additional wins for this product with flash makers and module makers alike.

我們還收到了去年我們主流 6 奈米 4 通道 PCIe 5 控制器的初始樣品，並在與快閃記憶體製造商和模組製造商的合作中為該產品贏得了更多勝利，取得了非凡的進展。

We anticipate this solution to be introduced late this year and begin ramping in 2026 as PCIe 5's adoption enter the mainstream PC market.

我們預計該解決方案將於今年稍後推出，並隨著 PCIe 5 進入主流 PC 市場而於 2026 年開始普及。

The complexity of PCIe 5 controller has increased significantly, not just in terms of process geometry, but also in engineering and firmware resources.

PCIe 5控制器的複雜性顯著增加，不僅在製程幾何方面，而且在工程和韌體資源方面。

They require more complex field engineer support with our customers and (inaudible) PC OEM.

他們需要為我們的客戶和（聽不清楚）PC OEM 提供更複雜的現場工程師支援。

We are developing closer collaboration with our customers to deliver unmatched support and reliability to ensure long-term success.

我們正在與客戶建立更緊密的合作，以提供無與倫比的支援和可靠性，確保長期成功。

In addition, our existing portfolio OF PCIe 4 and the SATA controller ensure that we have the right combination of solution to serve the need of the high-end to mainstream to cost-sensitive market.

此外，我們現有的 PCIe 4 和 SATA 控制器產品組合確保我們擁有正確的解決方案組合來滿足從高端到主流到成本敏感的市場的需求。

Beyond PC SSD, our solution for the growing portable SSD market are also taking a dominant position.

除了PC SSD之外，我們針對不斷成長的便攜式SSD市場的解決方案也佔據主導地位。

We have a win and shipping with several NAND makers as well as virtually every module maker in the market.

我們已與多家 NAND 製造商以及市場上幾乎所有模組製造商達成合作並開始供貨。

Portable SSDs are becoming increasingly popular for data backup, and our portfolio of controllers enable both high-speed and high-density solutions that are cost-effective for our customers.

便攜式 SSD 在資料備份方面越來越受歡迎，我們的控制器產品組合可為客戶提供具有成本效益的高速和高密度解決方案。

With our broad range of products, customer, and wins, we are well-positioned for growth later this year as these wins scale and the overall market demand recovers.

憑藉我們廣泛的產品、客戶和勝利，隨著這些勝利的擴大和整體市場需求的復甦，我們為今年稍後的成長做好了準備。

Now turning to our eMMC and UFS business.

現在轉向我們的 eMMC 和 UFS 業務。

Smartphone demand, like the PC market, remained weak as we entered 2025.

進入 2025 年，智慧型手機需求與個人電腦市場一樣，依然疲軟。

However, despite this, we grew our eMMC and UFS controller business by approximately 70% in 2024 as we rebound from a very weak 2023 and we scale with our flash-maker customers, expanded share with module makers, and engage with our first device smartphone OEM for QLC UFS.

然而，儘管如此，隨著我們從非常疲軟的 2023 年反彈，我們的 eMMC 和 UFS 控制器業務在 2024 年增長了約 70%，我們與閃存製造商客戶一起擴大規模，擴大了模組製造商的份額，並與我們的第一款 QLC UFS 設備智慧型手機 OEM 合作。

We expect our customer ramp to scale in the second half of this year in line with Garner's current annual smartphone forecast of approximately 5% with a strong emphasis on second half growth after a weaker start to this year.

我們預計，我們的客戶業務將在今年下半年擴大，與 Garner 目前對智慧型手機年度成長約 5% 的預測一致，並且在今年開局較弱之後，我們將重點關注下半年的成長。

Our team has been steadily developing new solution and winning additional projects.

我們的團隊一直在穩步開發新的解決方案並贏得更多專案。

The market is shifting away from the integrated eMCP and uMCP solution in the smartphone and moving toward discrete mobile DRAM.

市場正在從智慧型手機中的整合 eMCP 和 uMCP 解決方案轉向獨立行動 DRAM。

This is creating a significant opportunity for us as module makers are taking great share of the eMMC and UFS market which is improving our position given there is a significant less competition in discrete controllers.

這為我們創造了一個重要的機會，因為模組製造商佔據了 eMMC 和 UFS 市場的很大份額，鑑於分立控制器領域的競爭明顯較少，這將提升我們的地位。

With a lower cost involved in using discrete LPDDR4 mobile DRAM, there is a greater competition which in turn lead to flash makers outsourcing third-party controller like SMI to compete in Valueline mobile storage solution such as eMMC and UFS 2.2 and reduce R&D development cost.

由於使用獨立 LPDDR4 行動 DRAM 的成本較低，競爭也更加激烈，這反過來又促使快閃記憶體製造商外包 SMI 等第三方控制器，以在 eMMC 和 UFS 2.2 等 Valueline 行動儲存解決方案中競爭，並降低研發成本。

In addition to our existing UFS 3.1 controller supporting the latest generation NAND, we expanded our portfolio with multiple new product introduction.

除了我們現有的支援最新一代 NAND 的 UFS 3.1 控制器外，我們還透過推出多種新產品擴展了我們的產品組合。

These include a new eMMC 5.1 for low-end smartphone, smart devices IoT, and automotive.

其中包括適用於低階智慧型手機、智慧型裝置物聯網和汽車的新型 eMMC 5.1。

A new cost-effective UFS 2.2 controller to cut its mainstream market.

全新高性價比的UFS 2.2控制器，切入主流市場。

And the new 6-nanometer UFS 4.1 controller that we (inaudible) out last year which is currently sampling and expected to begin initial ramp in the second half of this year.

我們去年推出的新型 6 奈米 UFS 4.1 控制器目前正處於樣品階段，預計今年下半年開始初步量產。

eMMC remain about half of the 1.8 billion annual union market for eMMC and UFS today.

目前，eMMC 仍佔 eMMC 和 UFS 每年約 18 億美元聯合市場的一半。

And 70% of the eMMC market is a non-smartphone application like setup box, smart TV, automotive, and IoT.

而70%的eMMC市場是非智慧型手機應用，如機上盒、智慧電視、汽車和物聯網。

While smartphone will continue to account for less and less of the eMMC market as the UFS adoption increase.

隨著 UFS 的採用率不斷提高，智慧型手機在 eMMC 市場的份額將越來越小。

For UFS, the vast majority are for smartphone today for non-smartphone application, primarily going to automotive application, are growing at a much faster rate.

對於 UFS，絕大多數是用於智慧型手機，而如今非智慧型手機應用，主要是汽車應用，正在以更快的速度成長。

So while the overall smartphone market may be mature, we see tremendous opportunity as we expand with the flash-maker and module-maker partners into these additional opportunities.

因此，雖然整體智慧型手機市場可能已經成熟，但隨著我們與快閃記憶體製造商和模組製造商合作夥伴一起拓展這些額外的機會，我們看到了巨大的機會。

Our broad portfolio allow us to deliver solutions to our customers that address the expanding need of the market and gain further share.

我們廣泛的產品組合使我們能夠向客戶提供解決方案，滿足市場日益增長的需求並進一步獲得份額。

Now turning to our enterprise MonTitan platform.

現在轉向我們的企業 MonTitan 平台。

We made remarkable progress in 2024 and are well- positioned for strong growth in the enterprise (inaudible) market for us long term.

我們在 2024 年取得了顯著的進步，並且為企業（聽不清楚）市場的長期強勁成長做好了準備。

When we started 2024, we had target winning two Tier 1 customers.

當我們開始 2024 年時，我們的目標是贏得兩個一級客戶。

We won those two customers in the first quarter of 2024 and increased our target to four customers for the year.

我們在 2024 年第一季贏得了這兩位客戶，並將今年的目標提升到四位客戶。

I'm happy to report that we added four additional customers and now expect these six customers to ramp later this year.

我很高興地報告，我們增加了四個客戶，現在預計這六個客戶將在今年稍後增加。

So four new customers have a long history of supporting Tier 1 and Tier 2 enterprise and CSP in the U.S., Europe, and Asia.

因此，四家新客戶在支援美國、歐洲和亞洲的一級和二級企業和 CSP 方面有著長期的歷史。

Further expanding to the reach and adoption of MonTitan family of enterprise controllers.

進一步擴大 MonTitan 系列企業控制器的覆蓋範圍和採用範圍。

We began early shipment and generated revenue in second-half 2024.

我們開始提前出貨，並於 2024 年下半年產生收入。

And we remain confident that with our current mix of customers and our expanding family of MonTitan solution, we can achieve our target of 5% to 10% of our total revenue by the 2026-2027 timeframe.

我們堅信，憑藉我們目前的客戶組合和不斷擴大的 MonTitan 解決方案系列，我們可以在 2026-2027 年實現總收入 5% 至 10% 的目標。

MonTitan represent one of the largest win field growth opportunity for Silicon Motion in the coming years given the large addressable market for TLC and TLC NAND within the AI server, enterprise, and data center (inaudible) markets.

鑑於 AI 伺服器、企業和資料中心（聽不清楚）市場中 TLC 和 TLC NAND 的巨大潛在市場，MonTitan 代表著 Silicon Motion 未來幾年最大的成長機會之一。

Growing interest in our unique MonTitan platform is driven by our leading experience in QLC and TLC NAND; our dominant position in the merchant controller market; and our ability to deliver a wide range of firmware capability to meet the unique needs of different customers, applications, and use cases.

我們在 QLC 和 TLC NAND 的領先經驗推動了人們對我們獨特的 MonTitan 平台的興趣日益濃厚；我們在商家控制器市場的主導地位；以及我們提供廣泛韌體功能的能力，以滿足不同客戶、應用程式和用例的獨特需求。

We are expanding our capability with MonTitan family of solutions in 2025 through the development of additional controller and the more comprehensive suite of firmware and software to address broader range of opportunity for our customers.

我們將在 2025 年透過開發附加控制器和更全面的韌體和軟體套件來擴展 MonTitan 系列解決方案的功能，從而為我們的客戶提供更廣泛的機會。

We plan to offer a more complete family of solutions to customers including controller for SATA and PCIe 5 server boot drives, higher performance and higher density 6-channel, and 8-channel PCIe 5 controller for enterprise storage and servers.

我們計劃為客戶提供更完整的解決方案系列，包括用於 SATA 和 PCIe 5 伺服器啟動磁碟機的控制器、用於企業儲存和伺服器的更高效能和更高密度的 6 通道和 8 通道 PCIe 5 控制器。

And we are already engaged with new customers and developing next-generation PCIe 6 controller.

我們已經與新客戶合作並開發下一代 PCIe 6 控制器。

This, combined with our existing advantage, including our flexible firmware stack options, unique AC architecture, high-capacity leading performance, and performance (inaudible) technology, delivers a compelling enterprise-class portfolio that is unmatched by our competition.

結合我們現有的優勢，包括靈活的韌體堆疊選項、獨特的 AC 架構、高容量領先性能和性能（聽不清楚）技術，我們提供的是一款引人注目的企業級產品組合，這是我們的競爭對手無法比擬的。

With the MonTitan supporting the upcoming 2-terabit mono-die QLC NAND, we will be able to deliver high-density high-performance 128 terabytes a day with the best-in-class random read of 3.5 million IOPS that will be ideally suited for AI applications.

借助 MonTitan 支援即將推出的 2 太比特單晶片 QLC NAND，我們將能夠每天提供 128 太字節的高密度高性能數據，並實現一流的 350 萬 IOPS 隨機讀取速度，非常適合 AI 應用。

This combination of capacity and performance will deliver faster training in AI application, save power, and lower the total cost of ownership.

這種容量和性能的結合將為人工智慧應用提供更快的訓練、節省電力並降低整體擁有成本。

Lastly, let me give you an update of the progress we are making in the automotive market.

最後，讓我向您介紹我們在汽車市場的進展。

We support multi-market across our product category.

我們支持跨產品類別的多市場。

We have a win for our SATA PCIe 4 SSD controller, our eMMC and UFS controller, as well as our Feride embedded solution across a variety of use cases in vehicles.

我們的 SATA PCIe 4 SSD 控制器、eMMC 和 UFS 控制器以及 Feride 嵌入式解決方案在車輛的各種用例中都獲得了成功。

From traditional cars to new-generation software-defined vehicle, there is a significant increase in processing capability, sensors, cameras, CPUs and ECUs.

從傳統汽車到新一代軟體定義汽車，處理能力、感測器、相機、CPU 和 ECU 都有了顯著提升。

With this new capability, the need of a more memory is growing rapidly despite a mature overall automotive market.

憑藉這項新功能，儘管整體汽車市場已經成熟，但對更大記憶體的需求仍在快速增長。

As the complexity increases, the need of a more robust capability significantly increases.

隨著複雜性的增加，對更強大功能的需求也顯著增加。

And that's why ASPICE certification is becoming more critical and more a differentiator.

這就是為什麼 ASPICE 認證變得越來越重要並且越來越有差異化。

We are proud to be the only supplier with the PCIe 4.0 controller to achieve ASPICE Level 3 Certification, significantly increasing our lead over the competition.

我們很自豪能夠成為唯一獲得 ASPICE 3 級認證的 PCIe 4.0 控制器供應商，這大大提高了我們在競爭中的領先優勢。

We are already shipping into all major Tier 1 automotive customers including Mercedes, Tesla, General Motors, (inaudible), Xiaomi, Toyota, Honda, and several others including the leading automotive car service in the world.

我們已經向所有主要的一級汽車客戶發貨，其中包括梅賽德斯、特斯拉、通用汽車（聽不清楚）、小米、豐田、本田以及其他幾家客戶，包括世界領先的汽車服務公司。

While we have been growing automotive wins for the past several years and now beginning to scale meaningfully and reach 5% of our revenue in the third quarter of last year, we are confident it can ramp approximately 10% of our revenue by 2027 given our current slate of customers and wins and expected ramp of new products.

雖然我們在過去幾年中一直在汽車領域的勝利，並且現在開始顯著擴大規模並在去年第三季度達到我們收入的 5％，但我們相信，考慮到我們目前的客戶和勝利以及新產品的預期增長，到 2027 年它可以增加我們收入的約 10％。

In conclusion, as we enter 2025, despite the near-term broader market headwinds, we remain extremely well-positioned for future growth as we are growing share within our existing markets and expanding into new high growth markets including enterprise SSD controller, automotive, IoT, and others.

總之，當我們進入 2025 年時，儘管短期內市場面臨更廣泛的阻力，但我們仍然為未來的成長做好了極其有利的準備，因為我們正在現有市場中擴大份額，並擴展到新的高成長市場，包括企業 SSD 控制器、汽車、物聯網等。

We have an incredible strong portfolio of new products in our pipeline that will help drive long-term share gains, improve our product diversification including our PCIe Gen 5, UFS 4.1, ASPICE-certified automotive-grade PCIe Gen 4, and of course, MonTitan.

我們擁有令人難以置信的強大新產品組合，這將有助於推動長期份額成長，提高我們的產品多樣化，包括我們的 PCIe Gen 5、UFS 4.1、ASPICE 認證的汽車級 PCIe Gen 4，當然還有 MonTitan。

As our MonTitan and automotive business continue to scale for the next several years and our broad portfolio of solutions for IoT, industrial, commercial, and smart device application continue to gain share, I'm confident that our strategy to diversify beyond the maturing PC and smartphone market will be successful and believe we could see 20% of our business in 2027 coming from this new opportunity given the strength of existing customer wins and the expected second-half recovery in the PC and smartphone market.

隨著我們的 MonTitan 和汽車業務在未來幾年繼續擴大規模，以及我們針對物聯網、工業、商業和智能設備應用的廣泛解決方案組合繼續獲得份額，我相信我們在成熟的 PC 和智能手機市場之外的多元化戰略將取得成功，並且相信，鑑於現有客戶的強勁增長以及 PC 和智能手機市場預期下半年的複蘇，我們可以在 2027 年看到這一新機。

We expect to exit 2025 with an annual revenue run rate of close to $1 billion in the fourth quarter.

我們預計，到 2025 年第四季度，年收入運行率將接近 10 億美元。

I look forward to sharing more about our success with this product and new market throughout this year.

我期待今年能與大家分享更多關於我們在這個產品和新市場所取得的成功。

Now let me turn the call over to Jason to go over our financial results and outlook.

現在，讓我將電話轉給傑森，讓他介紹我們的財務表現和前景。

Thank you, Wallace.

謝謝你，華萊士。

Good morning, everyone, for joining us today.

大家早安，歡迎今天參加我們的活動。

I will discuss additional details of our fourth quarter results and then provide our outlook.

我將討論我們第四季度業績的更多細節，然後提供我們的展望。

Please note that my comments today will focus primarily on our NON-GAAP results unless otherwise specifically noted.

請注意，除非另有特別說明，我今天的評論將主要關注我們的非公認會計準則結果。

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

我們昨天發布的收益報告中包含了 GAAP 數據與非 GAAP 數據的對帳表。

In the December quarter, sales decreased 10% sequentially to $191.2 million and within our guidance range despite weaker end user demand for PCs and smartphones.

12 月季度，儘管終端用戶對個人電腦和智慧型手機的需求減弱，但銷售額環比下降 10% 至 1.912 億美元，但仍在我們的預期範圍內。

Gross margins increased for the seventh consecutive quarter to 47% as we are benefiting from improved product mix as we continue our shift towards customers to newer solutions.

隨著我們繼續向客戶轉向更新的解決方案，產品組合的改善也使我們受益匪淺，毛利率連續第七個季度增長至 47%。

Operating expenses declined by over 10% sequentially to $58.3 million in the December quarter due to the timing of tapeout costs that elevated our September quarter R&D expenses.

由於流片成本的時機導致 9 月季度的研發費用增加，12 月季度的營運費用較上季下降超過 10% 至 5,830 萬美元。

And operating margin improved sequentially from 16.1% to 16.5% in the December quarter at the high end of the guided range.

12 月季度的營業利潤率從 16.1% 環比提高至 16.5%，達到指導範圍的高點。

Earnings per share was $0.91, down slightly from the $0.92 in the third quarter.

每股收益為 0.91 美元，略低於第三季的 0.92 美元。

Total stock-based comp, which we excluded from non-GAAP results, was $9.7 million in 4Q '24.

我們從非 GAAP 結果中排除的股票薪酬總額在 24 年第四季為 970 萬美元。

We had $334.3 million cash, cash equivalents, and restricted cash at the end of the fourth quarter, compared to $368.6 million at the end of the third quarter.

截至第四季末，我們的現金、現金等價物和受限現金為 3.343 億美元，而第三季末為 3.686 億美元。

Cash declined in the quarter primarily due to changes in working capital driven by higher accounts receivable that typically trend higher in the fourth quarter and lower accounts payable due to timing of payments in the quarter.

本季現金減少，主要由於應收帳款增加（通常在第四季度呈上升趨勢）以及應付帳款減少（由於本季度付款時間表）導致營運資本發生變化。

We see these as short-term impacts to our cash balance.

我們認為這些會對我們的現金餘額產生短期影響。

Inventories decreased again to $201.2 million at the end of fourth quarter from $214.6 million at the end of the third quarter as we continue to work down our inventory levels.

由於我們繼續降低庫存水平，庫存從第三季末的 2.146 億美元再次下降至第四季末的 2.012 億美元。

While our end markets grew in low single-digit range last year, we increased revenue by 26%.

儘管去年我們的終端市場成長率僅為個位數，但我們的收入卻成長了 26%。

We were able to significantly improve profitability driving gross margins 300 basis points higher for the year, exiting the year at 47%.

我們顯著提高了獲利能力，使全年毛利率提高了 300 個基點，年末達到 47%。

Operating margins increased by more than 300 basis points as well despite our significant investments in two new 6-nanometer controllers, increased R&D headcount, and continued development for our MonTitan business.

儘管我們對兩個新的 6 奈米控制器進行了大量投資、增加了研發人員數量並繼續開發 MonTitan 業務，但營業利潤率仍增加了 300 個基點以上。

As we enter 2025, the ongoing consumer weakness remains compounded by global economic uncertainty driven by potential tariffs and other challenges which are limiting near-term demand growth and visibility.

隨著我們進入 2025 年，持續的消費疲軟態勢仍因潛在關稅和其他挑戰引發的全球經濟不確定性而加劇，這些挑戰限制了短期需求的成長和可見性。

Despite this, our teams have been steadily developing new solutions, winning new customers, and expand our end market reach.

儘管如此，我們的團隊一直在穩步開發新的解決方案，贏得新客戶並擴大我們的終端市場範圍。

Additionally, our teams have been extremely effective in delivering new products, driving the expansion of our opportunities, the new and emerging markets within the enterprise, automotive, industrial, and commercial markets.

此外，我們的團隊在推出新產品、推動我們的機會以及企業、汽車、工業和商業市場內的新興市場方面非常有效。

We're optimistic that despite the near-term environment with combination of our strong customer pipeline, new product introductions, and expected second-half recovery in the consumer markets, we're well-positioned for a strong second half of the year.

我們樂觀地認為，儘管近期環境不佳，但憑藉我們強大的客戶管道、新產品的推出以及預期的下半年消費市場復甦，我們仍能為今年下半年的強勁增長做好準備。

Now let me discuss our first quarter outlook.

現在讓我討論一下我們第一季的展望。

Revenue is expected to decline 12.5% to 17.5% in line with the near-term expectations for the PC and smartphone end markets.

預計營收將下降 12.5% 至 17.5%，與個人電腦和智慧型手機終端市場的近期預期一致。

Gross margins should continue to expand as we continue to transition customers and new products and expect gross margins to be in the range of 47% to 47.5% in the March quarter.

隨著我們不斷轉變客戶和新產品，毛利率應繼續擴大，預計 3 月季度的毛利率將在 47％至 47.5％ 之間。

Operating margin is expected to be in the range of 7.7% to 9.7% given the seasonal revenue impact.

考慮季節性收入的影響，預計營業利潤率在 7.7% 至 9.7% 之間。

But we expect this will rebound quickly throughout the year.

但我們預計這一數字將在全年迅速反彈。

Our effective tax rate is expected to be 16%.

我們的有效稅率預計為16%。

And stock-based comp and dispute-related expenses is expected to be in the range of $7.5 million to $8.5 million.

股票補償和糾紛相關費用預計在 750 萬美元至 850 萬美元之間。

Moving forward to remain consistent with our semiconductor peers.

繼續前進，與我們的半導體同行保持一致。

We will no longer release preliminary results at the end of each quarter, and we'll only preannounce results when they are expected to differ significantly from our outlook.

我們將不再在每個季度末發布初步結果，並且只有當預期結果與我們的展望有重大差異時，我們才會預先公佈結果。

We will however continue to provide qualitative view on our full-year, but we will not be providing specific guidance.

不過，我們將繼續提供對全年業績的定性看法，但不會提供具體指導。

To that end, while the PC and smartphone and markets are expected to grow in the low mid single digits this year, demand is expected to be significantly second-half weighted with the first half expectations more muted than normal.

為此，雖然預計今年個人電腦和智慧型手機市場將以中低個位數成長，但預計需求將明顯集中在下半年，而上半年的預期則比正常情況更為低迷。

We believe that our business in 2025 will reflect the broader industry dynamics with significant growth expected in the second half of the year.

我們相信，2025 年的業務將反映更廣泛的行業動態，預計下半年將顯著成長。

This should allow revenue to grow in the mid single digit range for 2025 as demand rebounds and our new products begin to scale.

隨著需求反彈和我們新產品的規模開始擴大，到 2025 年，收入將能夠實現中等個位數成長。

As Wallace mentioned, we believe our revenue for the fourth quarter this year will approach close to the $1 billion annual run rate.

正如華萊士所提到的，我們相信今年第四季的營收將接近 10 億美元的年營運率。

As we saw through 2024 we expect to continue to steadily improve our gross margins throughout this year as new projects and new products scale.

正如我們所看到的，到 2024 年，隨著新項目和新產品的擴大，我們預計今年全年的毛利率將繼續穩步提高。

Gross margins have historically been in the 48% to 50% range and we are confident that we will exit the year towards the higher end of that range for operating expenses.

歷史上，毛利率一直在 48% 至 50% 之間，我們有信心，今年末我們的營業費用將達到這一範圍的較高水平。

We expect to continue to invest in advanced geometry products that will enable us to maintain and grow our share longer term and expand into new markets to diversify our business.

我們期望繼續投資先進的幾何產品，這將使我們能夠長期保持和增加我們的份額，並擴展到新的市場，實現業務多元化。

We expect that with these investments in technology and R&D engineers and resources, our operating expenses should grow in line with our revenue.

我們預計，透過對技術和研發工程師及資源的投資，我們的營運費用將與收入同步成長。

This year, we expect effective tax rate for 2025 to be approximately 16% full-year, stock-based compensation and dispute relay expenses should be in the range of $27 million to $29 million.

今年，我們預計 2025 年全年有效稅率約為 16%，股票薪酬和爭議轉達費用應在 2,700 萬美元至 2,900 萬美元之間。

And for the full year, we expect $65 million in CapEx of which $29 million will be routine CapEx and $36 million will be for their new office building construction.

我們預計全年資本支出為 6,500 萬美元，其中 2,900 萬美元為常規資本支出，3,600 萬美元用於新辦公大樓建設。

Finally, I'd like to spend a moment discussing our capital allocation strategy.

最後，我想花點時間討論一下我們的資本配置策略。

Our business has always been one that generates significant amount of cash.

我們的業務一直是能產生大量現金的業務。

Our capital allocation strategy for the excess cash our business generates has always consisted of three prongs: Our dividends, share repurchases, and reinvestment for growth both organically and through acquisitions.

我們對業務產生的過剩現金的資本配置策略始終由三個部分組成：股息、股票回購以及透過有機成長和收購進行的再投資。

Our dividend policy has been the cornerstone of our capital return strategy since we initiated our first dividend in 2013.

自 2013 年首次派發股息以來，我們的股利政策一直是我們資本回報策略的基石。

Our dividend has gradually increased over the past decade from $0.60 per ADS annually initially, to now $2 per ADS annually.

過去十年，我們的股利從最初的每年每股美國存託憑證 0.60 美元逐步增加到現在的每年每股美國存託憑證 2 美元。

We anticipate this will continue to be a significant part of our capital return strategy.

我們預計這將繼續成為我們資本回報策略的重要組成部分。

And we'll look for opportunities to further increase the dividend longer term.

我們將尋找機會進一步長期增加股利。

As our business continues to scale, we have complemented our dividend with share repurchase programs from time to time.

隨著我們業務的不斷擴大，我們不時透過股票回購計畫來補充我們的股利。

And as you saw from our press release yesterday, the Board has authorized a new six-month $50 million share repurchase program.

正如您從我們昨天的新聞稿中看到的，董事會已批准一項新的為期六個月的 5000 萬美元股票回購計劃。

The near-term challenges in the end markets do not reflect our views on our own long-term opportunity.

終端市場的近期挑戰並未反映我們對自身長期機會的看法。

And our Board feels that this is a good time to authorize a new share repurchase program.

我們的董事會認為現在是批准新的股票回購計畫的好時機。

On the reinvestment front, we have occasionally acquired to expand our markets and this continues to be something that we look at consistently.

在再投資方面，我們偶爾會進行收購以擴大我們的市場，這仍然是我們持續關注的事情。

The industry is highly focused on enterprise today and our exposure to the enterprise is through our internally developed MonTitan family of solutions.

當今業界高度關注企業，我們透過內部開發的 MonTitan 系列解決方案來接觸企業。

We're constantly evaluating additions to this segment through inorganic means to expand our breadth and scale in this rapidly growing market.

我們不斷透過無機手段評估這一領域的新增內容，以擴大我們在這個快速成長的市場中的廣度和規模。

It's too early to discuss potential targets.

現在討論潛在目標還為時過早。

We do see ample opportunities to further diversify our business and growth.

我們確實看到了進一步實現業務和成長多元化的充足機會。

Longer term, all three prongs of our capital allocation strategy will remain an important driver for us to continue to increase our shareholder value.

從長遠來看，我們的資本配置策略的三個面向仍將是我們持續提高股東價值的重要驅動力。

And I look forward to regularly updating you on our progress.

我期待定期向您通報我們的進展。

I would like to conclude by saying that we are pleased by our backlog and wins for this year.

最後，我想說，我們對今年的積壓工作和勝利感到非常高興。

Our investments continue to deliver new opportunities and additional share that will drive long term revenue growth.

我們的投資不斷帶來新的機會和額外的份額，這將推動長期收入成長。

We anticipate the current market to be short lived and anticipate a strong rebound in the second half of the year.

我們預計當前市場將是短暫的，並預計下半年將出現強勁反彈。

This concludes our prepared remarks.

我們的準備好的演講到此結束。

We will now open the call to your questions.

我們現在開始回答你們的提問。

Operator?

操作員？

Thank you.

謝謝。

We will now begin the question-and-answer session.

我們現在開始問答環節。

(Operator Instructions) Please stand by while we compile the Q&A roster.

（操作員指示）我們正在編製問答名單，請稍候。

Mehdi Hosseini, SFG.

梅赫迪·胡賽尼（Mehdi Hosseini），SFG。

Thanks for taking my question.

感謝您回答我的問題。

A couple of follow-ups.

一些後續行動。

Jason, how should we think about the OpEx especially '25?

傑森，我們該如何看待 OpEx，尤其是 25 年的 OpEx？

And then to what extent you're going to increase R&D?

那麼您將在多大程度上增加研發投入？

And what should we assume for CapEx in '25?

那麼，我們應該對25年的資本支出作何假設呢？

And one follow-up for Wallace.

還有一次華萊士的後續報導。

Thanks for all the details regarding your strategy.

感謝您提供有關您的策略的所有詳細資訊。

But all the NAND manufacturers that have reported over the past couple of months, they've all talked about a secular trend that demand is decelerating.

但過去幾個月發布報告的所有 NAND 製造商都談到了需求減速的長期趨勢。

NAND market is no longer demand elastic.

NAND 市場的需求不再有彈性。

And given that and the enterprise, as you highlighted, would only be 10% of your revenue in 2026-2027, what are some of these specific strict change in the strategy or other markets that you're evaluating?

有鑑於此，正如您所強調的，企業在 2026-2027 年僅佔您收入的 10%，您正在評估的戰略或其他市場中的具體嚴格變化有哪些？

I wanted to better understand your optionality here, especially as NAND market matures.

我想更好地了解您在這裡的選擇權，特別是在 NAND 市場成熟的情況下。

Thank you.

謝謝。

So to answer the first part of your question, maybe from an OpEx standpoint, we talked about revenue growing for us this year in line with the end markets that we serve.

因此，要回答你問題的第一部分，也許從營運支出的角度來看，我們談到了今年我們的收入成長與我們服務的終端市場一致。

So you're looking at kind of low mid single digits there.

因此，您看到的是一個中低個位數的數字。

OpEx should grow roughly in line with that.

營運支出應該大致與此同步成長。

The majority of our growth in OpEx is going to come on the R&D side.

我們的營運支出成長大部分來自於研發方面。

Our sales and marketing G&A should remain relatively flat.

我們的銷售和行銷一般及行政開支應保持相對穩定。

And so the increase in OpEx is really going to be driven by increased development costs, higher headcount on the engineering side, et cetera.

因此，營運支出的增加實際上是受到開發成本的增加、工程方面員工人數的增加等等因素的推動。

From a total CapEx, for the year, we're looking at about $65 million, of which, about $29 million is for routine CapEx which is software, testing equipment, et cetera.

從今年的總資本支出來看，我們預計約為 6,500 萬美元，其中約 2,900 萬美元為常規資本支出，包括軟體、測試設備等。

And then $36 million is to finish up our new office here in Hsinchu.

另外還有 3,600 萬美元用於完成我們在新竹的新辦公室的建造。

Okay.

好的。

Mehdi, let me answer your question.

梅赫迪，讓我來回答你的問題。

First of all, I want to say this, we believe the NAND maker scaled back regarding the NAND investment especially for consumer product.

首先，我想說的是，我們認為 NAND 製造商縮減了對 NAND 的投資，尤其是針對消費性產品的投資。

It also gave us tremendous new opportunity to grow because we, basically, in the past six months, we have more projects than we can develop for the NAND makers.

這也為我們帶來了巨大的新發展機會，因為基本上在過去六個月中，我們為 NAND 製造商承接的專案比我們能開發的專案還要多。

So this is a great opportunity for us to continue to gain market share for Client SSD and module controller.

因此，這對我們來說是一個繼續獲得客戶端 SSD 和模組控制器市場份額的絕佳機會。

But beyond that, we also want to grow heavily for enterprise and automotive business.

但除此之外，我們也希望企業和汽車業務能取得巨大發展。

So automotive, because they take a longer term and so we won't see the immediately and strong rebound in this year, but we are confident we will see double from now to 2027.

因此，汽車產業需要較長的周期，所以我們不會在今年看到立即強勁的反彈，但我們相信從現在到 2027 年我們將看到翻倍。

But for enterprise, we have a strategy.

但對於企業來說，我們有一個策略。

I think we're growing hiring more R&D for enterprise storage, now covering high-performance, high-density as well as a boost storage from both in U.S. and China market.

我認為我們正在為企業儲存招募更多的研發人員，現在涵蓋高效能、高密度以及美國和中國市場的增強儲存。

In the same time, I think we evaluate because we are building a new team for (inaudible) and mixing the development.

同時，我認為我們進行評估是因為我們正在為（聽不清楚）和混合開發組建一個新的團隊。

And this team is developed for all the high-performance connectivity with storage together.

而這個團隊就是為了將所有高效能連接與儲存結合在一起而開發的。

I cannot give more detail.

我無法提供更多細節。

Certain development we consider will be internally, certain we consider to do acquisition, some we could do the joint development with third party.

有些開發我們考慮在內部進行，有些開發我們考慮進行收購，有些開發我們可以與第三方進行共同開發。

So this is a big discussion.

所以這是一個大討論。

And I think when the product is mature, we're going to have a press release to our investors.

我認為，當產品成熟時，我們會向投資者發布新聞稿。

Thank you.

謝謝。

And also one more thing, Mehdi, in terms of MonTitan and automotive growing each roughly 5% to 10% of our business by 2027, that's not a final target, right?

還有一件事，Mehdi，就 MonTitan 和汽車業務而言，到 2027 年，我們的業務將分別增長約 5% 到 10%，這不是最終目標，對嗎？

We do expect that to continue to grow longer term.

我們確實預計這一趨勢將長期持續成長。

That is just the first way point for you guys in the relatively medium term.

這只是你們相對中期發展的第一個目標。

So just quickly, I think you said that the incremental revenue contribution from these new areas would be about 20% of revenue by 2027.

所以，我想您說過，到 2027 年，這些新領域的增量收入貢獻將佔總收入的 20% 左右。

Did I hear that correct?

我聽得對嗎？

That's correct.

沒錯。

Okay.

好的。

Thank you.

謝謝。

Craig Ellis, B. Riley Securities.

艾利斯 (Craig Ellis)，B. Riley Securities。

Thanks for taking the question.

感謝您回答這個問題。

Good evening, team, and congratulations on the way you executed '24 and how you're starting '25.

晚上好，各位團隊，祝賀你們在24年取得的成績以及在25年的開局。

Wallace, I wanted to start going back to some of your comments on MonTitan in the enterprise SSD area.

華萊士，我想回顧一下你對企業 SSD 領域的 MonTitan 的一些評論。

Great to see customer expansion to six customers.

很高興看到客戶擴展到六家。

What I'm hoping you can do is just share with us some color on what you'd expect in the back half of this year on a couple parameters.

我希望您能與我們分享您對今年下半年幾個參數的期望。

One, give some color around which of the customers, maybe not by name, but just characterize who are going to be the leaders?

第一，對哪些客戶做一些說明，也許不用名字，但只要描述誰將成為領導者？

And when would early shipment start?

提前出貨什麼時候開始？

And when would the latter of the six customers start to ship?

那麼後者什麼時候開始出貨呢？

And maybe help us understand how you see the volume potential across those customers and how that plays out.

也許可以幫助我們了解您如何看待這些客戶的銷售潛力以及如何發揮作用。

Just enrich the view of what's coming with enterprise SSD, please.

請豐富對企業級 SSD 未來發展的認識。

We do have a tremendous interest opportunity.

我們確實擁有巨大的利益機會。

And currently, we secured six customers.

目前，我們已擁有六位客戶。

Two Tier 1, one U.S. and one China.

兩個一級國家，一個是美國，一個是中國。

The other is really enabling to supporting Tier 1, Tier 2 customers in both the U.S. and China.

另一個是真正支持美國和中國的一級和二級客戶。

Now for Tier 1 customers, the firmware development, they need to tailor their own development.

現在對於一級客戶來說，韌體開發，他們需要根據自己的需求進行客製化開發。

So they take time.

所以他們需要時間。

But initial production will be late this year and gradually ramping.

但初期生產將在今年稍後進行，並將逐步增加產量。

Normally, it takes about six months for the ramp to reach the high level.

通常情況下，坡道需要大約六個月的時間才能達到高水準。

So we expect they will start to ramp on late this year and you're going to see the high volume reach the more meaningful volume from middle of 2026.

因此，我們預計它們將在今年稍後開始加速，並且你將看到高產量在 2026 年中期達到更有意義的產量。

The same for the China customers.

對於中國客戶也是如此。

I think they also have dedicated customers and for the (inaudible) development.

我認為他們還擁有專門的客戶和（聽不清楚）開發。

For other four customers, some use our turnkey solution, some use a joint development format.

對於其他四個客戶，有的使用我們的交鑰匙解決方案，有的使用聯合開發格式。

So this, we also have a very limited resources to support the customer.

因此，我們只有非常有限的資源來支援客戶。

But importantly, for us to expand for the other business, our turnkey solution needs to be fully mature and ready, then we can use the same solution and one or two dedicated NAND to expand for the business.

但重要的是，為了擴展其他業務，我們的交鑰匙解決方案需要完全成熟並準備就緒，然後我們可以使用相同的解決方案和一兩個專用的 NAND 來擴展業務。

We see many, many customers, especially from U.S., really demand high-density QLC.

我們看到很多客戶，特別是來自美國的客戶，確實需要高密度 QLC。

For China side, majority is TLC, from 32 terabytes to 64 terabytes.

中國方面，以TLC為主，從32TB到64TB。

But U.S. all have high-density and from 64 to 120 terabytes.

但美國都擁有高密度，從64到120兆位元組。

So this needs a tremendous time.

所以這需要大量時間。

But because we really don't see near term competition, and we really need to deliver results, we just need the time to deliver result, we believe the ramping could be much higher and faster than we plan right now.

但因為我們確實沒有看到短期競爭，而且我們確實需要交付成果，我們只是需要時間來交付成果，我們相信成長速度可能比我們現在計劃的要高得多、要快得多。

But we want to be patient and to see the fruitful result for next year.

但我們希望保持耐心，期待明年能看到豐碩的成果。

That's really helpful color and would certainly appreciate if it was much higher and much faster.

這確實是很有用的顏色，如果它更高更快的話，肯定會很受歡迎。

I wanted to move on to another question that was really related to the back half of the year.

我想談談另一個與今年下半年真正相關的問題。

So it's really helpful to get the color that in the calendar 4Q the business could be operating at a $1 billion annual revenue run rate.

因此，了解日曆第四季該業務可能以 10 億美元的年收入運行率運作確實很有幫助。

The question is this, from first half levels, as we work through soft, PC, and smartphone demand, et cetera, how would you force rank the growth drivers, half on half, within the business, either client SSD, UFS, MonTitan, et cetera?

問題是，從上半年的水平來看，當我們研究軟體、PC 和智慧型手機需求等時，您將如何對業務中的成長動力進行強制排名，一半對一半，無論是客戶端 SSD、UFS、MonTitan 等等？

Help us understand how we get from where we are now to that $1 billion run rate level.

幫助我們了解我們如何從現在的水平達到 10 億美元的運行率水平。

The major growth driver from our business this year, it depend on PCIe 5 8-channel high-end product line.

我們今年業務的主要成長動力依賴PCIe 5 8通道高階產品線。

Currently, we are just in the very small volume, and we will start to ramp from second quarter.

目前我們的產量還很小，我們將從第二季開始增加產量。

And I believe, in Q3, will be meaningful volume.

我相信第三季的銷量將會很可觀。

Because this is including four NAND makers and almost a half dozen module makers.

因為這其中包括四家 NAND 製造商和近六家模組製造商。

And this is a higher ASP.

這是一個更高的 ASP。

I can only tell you, it's more than $10 per ASP.

我只能告訴你，每 ASP 價格超過 10 美元。

So they were driving for much stronger.

因此，他們要更加努力。

And our module controller, also going very fast, and because we are engaged as multiple NAND maker as well as module maker, the primary from low end eMMC UFS 2.2 and moving to 3.1, our high-end UFS 4.1 also will start to ramp in fourth quarter.

我們的模組控制器也發展得非常快，由於我們作為多家 NAND 製造商和模組製造商參與其中，主要從低階 eMMC UFS 2.2 轉向 3.1，我們的高階 UFS 4.1 也將在第四季開始加速。

So I think maybe we have a multiple major program and it's just time in project transition.

因此我認為也許我們有多個主要項目，現在只是專案轉型的時候。

Hopefully, we will not suffer the really seasonality, but we do have many, many multiple major project pipelines in our hand.

希望我們不會遭受真正的季節性影響，但我們手中確實有許多許多重大項目管道。

That's why we're confident we have a $1 billion run rate by Q4 this year.

這就是我們有信心今年第四季實現 10 億美元營業額的原因。

That's very helpful.

這非常有幫助。

Thanks, team.

謝謝，團隊。

Quinn Bolton, Needham & Company.

奎因博爾頓，Needham & Company。

Hi.

你好。

This is (inaudible), on for Quinn.

這是（聽不清楚），為奎因舉行的。

Thanks for taking our questions.

感謝您回答我們的問題。

How are you thinking about the gross margin target of 48% to 50% through the year?

您對於全年48%-50%的毛利率目標有什麼想法？

It sounds like this PCIe 8-channel will really be a big driver there.

聽起來這個 PCIe 8 頻道確實會成為一個巨大的推動力。

Is that the main tailwind?

這是主要的順風嗎？

Maybe any other end market expansions getting to that higher end of the range like you mentioned?

也許任何其他終端市場擴張都能達到您所提到的高端範圍？

Thanks.

謝謝。

So PCIe 5 8-channel, that's new to the market.

因此 PCIe 5 8 通道對市場來說還是新產品。

For notebook this year, probably just about 5%.

對於今年的筆記型電腦來說，可能只有5%左右。

But majority also moved to desktop and gaming PC and PC workstation.

但大多數人也轉向了桌上型電腦、遊戲電腦和電腦工作站。

And we have confidence we can own more than 50% of the high-end market for PCIe Gen 5 with the momentum.

我們有信心憑藉這一發展勢頭，佔據 PCIe Gen 5 高端市場 50% 以上的份額。

And I think next year, PCIe Gen 5 high-end will grow to 10% of the notebook.

我認為明年 PCIe Gen 5 高階將成長到筆記型電腦的 10%。

And so this is where our 4-channel for mainstream also will start to ramp up by late this year and early 2026.

因此，我們的主流 4 通道也將在今年年底和 2026 年初開始普及。

So I think the PCIe Gen 5 2026 will have roughly around 20% to 30% market share.

因此我認為 PCIe Gen 5 2026 將擁有約 20% 到 30% 的市佔率。

And this is the thing, we see the pipeline transition and favors the motion because we have a much more design pipeline in our hand, just a transition.

這就是事情，我們看到了管道轉換並支持運動，因為我們手中有更多的設計管道，只是一個轉換。

And sometimes, it depends, Each of the NAND maker customer, they are NAND allocation.

有時，這取決於每個 NAND 製造商客戶，他們都有 NAND 分配。

Sometimes, they allocate more for enterprise, for data center.

有時，他們會為企業、資料中心分配更多。

Sometimes they need it for the consumer for PC OEM.

有時他們需要為 PC OEM 消費者提供它。

When we have multiple NAND customers and module makers for both channels and the PC OEM, we feel very comfortable to do that.

當我們擁有多個 NAND 客戶和模組製造商（包括通路和 PC OEM）時，我們會非常樂意這樣做。

In addition, I think our UFS, even value line UFS controller and also new UFS 4.1 controller, also margin is above our corporate average.

此外，我認為我們的 UFS，甚至是價值線 UFS 控制器以及新的 UFS 4.1 控制器的利潤率也高於我們的公司平均水平。

That's why this helps for every gross margin toward 48% to 50% by the year end.

這就是為什麼這有助於到年底毛利率達到 48% 到 50% 的原因。

Thanks.

謝謝。

Which of the NAND providers is the biggest competitor in the auto market.

哪家NAND供應商是汽車市場最大的競爭對手。

And what's your geographic exposure?

您的地理分佈如何？

It was definitely helpful to hear some of those customers.

聽取一些顧客的意見無疑是很有幫助的。

But I'm just wondering if you're more leverage to the share gainers versus the share takers.

但我只是想知道，您是否對份額增加者比對份額接受者更具影響力。

Thanks.

謝謝。

We cannot comment our NAND partner because we work with every NAND maker for specific project development.

我們無法評論我們的 NAND 合作夥伴，因為我們與每個 NAND 製造商合作進行特定的專案開發。

I think every NAND maker have different strategy, They have different planning.

我認為每個 NAND 製造商都有不同的策略，他們有不同的計劃。

They also have R&D resource allocation.

他們還有研發資源配置。

Some move more to HBN.

有些則更多地轉向 HBN。

Some move more to a different category.

有些則轉移到不同的類別。

So we cannot comment from time to time.

因此我們不能時常發表評論。

However, we always want to be sure when they do outsourcing to third-party.

然而，當他們將業務外包給第三方時，我們總是希望確保萬無一失。

Silicon Motion is the best candidate there.

Silicon Motion 是最佳候選人。

Thank you.

謝謝。

Do you have a follow-up question,

你還有後續問題嗎？

(inaudible)?

（聽不清楚）？

No.

不。

Thank you.

謝謝。

Suji Desilva, Roth Capital.

羅斯資本 (Roth Capital) 的蘇吉·德席爾瓦 (Suji Desilva)。

Hi Wallace.

你好，華萊士。

Hi Jason.

嗨，傑森。

So just expounding on the '25 guidance, the $1 billion run rate exiting the year, what's a typical 2H versus 1H sort of split for a year?

那麼，只是闡述一下 25 年的指導方針，今年結束時 10 億美元的運行率，一年中下半年和上半年的典型分佈情況是怎樣的？

And this year sounds like it's more backend-loaded.

今年聽起來後端負載更重。

Just trying to get a sense of maybe how much more backend-loaded this year is versus a typical year.

只是想了解今年與往年相比後端負載增加了多少。

And if maybe you could touch on inventory and if the channel of inventories are in good shape or whether you're starting to see any build there?

您是否可以談談庫存，以及庫存管道是否狀況良好，或者您是否開始看到庫存增加？

That'd be helpful.

那將會很有幫助。

Yeah.

是的。

Typically, for us, you're looking at roughly 45/55 split between first half and second half.

通常，對我們來說，上半場和下半場的比例大約是 45/55。

It's going to be much more second-half loaded this year, compared to the previous or normalized year.

與去年或正常年份相比，今年下半年的負擔將更加沉重。

From an inventory basis, we don't see really a whole lot of excess inventory in the channel.

從庫存來看，我們並沒有看到渠道中存在大量的過剩庫存。

We see our customers ordering roughly in line with end market demand.

我們發現客戶的訂購量大致與終端市場需求一致。

So we think channel inventory remains healthy, and we don't see that as an issue as demand ramps up.

因此，我們認為渠道庫存仍然健康，而且隨著需求的增加，我們不認為這會成為一個問題。

Okay.

好的。

Great.

偉大的。

Thanks, Jason.

謝謝，傑森。

And then maybe a longer term strategic question.

然後也許有一個長期的戰略問題。

The diversification strategy, the multi-year plan here.

多元化策略、多年期計劃就在這裡。

Maybe Wallace or Jason, can you give us a framework of what areas -- you've been in areas you've divested, you've acquired in the past, what areas would make sense from a strategic perspective?

也許是華萊士或傑森，您能為我們提供一個框架嗎？

Any color there would be helpful.

任何顏色都有幫助。

I think we focus now in the mixed signal design and also relate to enterprise because we see the storage and connectivity, they are very closely coupled.

我認為我們現在專注於混合訊號設計並且也與企業相關，因為我們看到儲存和連接，它們是緊密結合的。

So certain areas, I think, we can share internal technology as well as we try to acquire some new -- some important technology we don't have in-house.

因此，我認為，在某些領域，我們可以分享內部技術，同時我們也可以嘗試獲得一些我們內部沒有的新技術、一些重要的技術。

We can do joint development.

我們可以進行聯合開發。

We might acquire if it's appropriate to do so.

如果合適的話，我們可能會收購。

So this is the area we think that's all around the enterprise area.

我們認為這就是圍繞企業區域的區域。

Okay.

好的。

Thanks, Wallace.

謝謝，華萊士。

Thanks, Jason.

謝謝，傑森。

(Operator Instructions)

（操作員指令）

Matt Bryson, Wedbush.

韋德布希的馬特布萊森。

Thank you.

謝謝。

Just starting off with one more on 2025.

2025 年又一個目標才剛開始。

I know it's back-half loaded.

我知道它的後半部已經裝載了。

But typically, you tend to see seasonality lead to a pick-up in Q2, Q3, Q4.

但通常情況下，你會看到季節性導致第二季、第三季、第四季的回升。

Can we assume that Q1 should represent the bottom in terms of revenue for the year?

我們是否可以假設第一季的收入是全年最低的？

Yeah.

是的。

We'd certainly believe so.

我們當然會相信如此。

Q2 -- we do expect to see a sequential growth throughout the year.

Q2－我們確實預期全年將持續成長。

And obviously, that sequential growth is going to be much stronger in the back half of the year relative to Q1, Q2.

顯然，與第一季和第二季相比，下半年的連續成長將更加強勁。

And then I guess my second question is about a future M&A strategy, if there happens to be M&A.

然後我想我的第二個問題是關於未來的併購策略，如果發生併購的話。

I guess the question would be, can you give us any idea of what you'd be looking for in terms of necessary metrics around returns or opportunity to pull the trigger on M&A versus it seems like Silicon Motion has so many opportunities moving forward and is so undervalued, I guess, wouldn't it -- it seems that you have a pretty high bar to go out and acquire a company versus buying back your own stock given where the valuation is today, I guess.

我想問題是，您能否告訴我們，就回報或觸發併購的機會而言，您在尋找什麼必要指標？ 相比之下，Silicon Motion 似乎有很多發展機會，而且被低估了，我想，不是嗎？

I want some comfort that M&A in the past hasn't necessarily quite worked out as well as you'd hope that we might not see another Shannon, for instance.

我希望得到一些安慰，過去的併購不一定會像你希望的那樣順利，例如，我們可能不會再看到另一個香農。

I think, our M&A is focused on core technology and focused on core business to grow.

我認為，我們的併購是圍繞著核心技術、圍繞核心業務來成長的。

So this is not something we just want to buy the company to grow the revenue.

因此，我們不只是想透過收購這家公司來增加收入。

We really want to build around the enterprise SSD.

我們確實希望圍繞企業級 SSD 進行建置。

Because we started to win design with our major customer, we also found out there's several key components around and we are able to also make a similar product.

由於我們開始與主要客戶贏得設計，我們也發現周圍有幾個關鍵零件，我們也能夠製造類似的產品。

But we are lacking some key elements.

但我們缺少一些關鍵要素。

And so this is the area we have evaluated whether we are able to win and grow faster and the market is big enough and we have a value to do so.

因此，我們已經評估了這個領域，我們是否能夠獲勝並更快地發展，市場是否足夠大，我們是否有價值這樣做。

So this is M&A, we have been more strategic to expand our core technology and key products for our customer.

這就是併購，我們更有策略地為客戶擴展我們的核心技術和關鍵產品。

We do have (inaudible) customer committed, and we will move to that direction.

我們確實有（聽不清楚）客戶承諾，我們將朝著這個方向努力。

And also keep in mind, Matt, as I said, our capital allocation strategy is three-pronged, right?

另外請記住，馬特，正如我所說，我們的資本配置策略是三管齊下的，對嗎？

Dividend will still continue to be the primary part of that.

股息仍將是其中的主要部分。

And then the share purchase is something that we have done from time to time.

我們時不時就會買股票。

And the press release yesterday, certainly being one of those times.

昨天的記者會肯定就是其中一次。

Got it.

知道了。

So it sounds like though if you step forward with acquisitions, you'll have pretty -- you'll have certainty in some sense around there's this additional opportunity and this is the right way to go versus partnering or building internally.

因此，聽起來，如果你繼續進行收購，你就會——在某種意義上，你會確信還有這個額外的機會，而且這是正確的做法，而不是合作或內部建設。

And so, you'll see -- the ROI will be relatively clear to us on the investment community when you -- assuming you move in that direction?

所以，你會看到──當你──假設你朝那個方向前進時，投資報酬率對我們投資界來說會相對清晰？

Yeah.

是的。

And I would say that, look, we're always evaluating the best ways in which we can use a large amount of cash to generate shareholder value, right?

我想說，我們總是在評估如何利用大量現金來創造股東價值，對嗎？

Acquiring complementary technologies and businesses that offer additional growth or technologies that Wallace pointed out to our existing products has always been part of our strategy.

收購能夠為我們的現有產品帶來額外成長或技術（華萊士指出的）的互補技術和業務一直是我們策略的一部分。

And we'll also be looking at it if there are right targets.

我們也會研究是否有正確的目標。

But nothing imminent, nothing particular or specific right now.

但目前還沒有任何迫在眉睫、特別或具體的事情發生。

It's obviously something that we continue to evaluate.

顯然，我們會繼續評估這一點。

But in the meantime, the dividend and time-to-time repurchases are going to be the primary ways of returning capital to shareholders.

但同時，股利和定期回購將成為向股東返還資本的主要方式。

Awesome.

驚人的。

And I just have one more.

我還有一個。

It's great to hear that you guys signed four new customers versus the two you promised.

很高興聽到你們簽下了四個新客戶，而之前承諾的是兩個。

You talked about MonTitan exiting Q4.

您談到了 MonTitan 退出第四季度。

I guess, you were also talking previously about MonTitan being 10% of revenue roughly in 2027.

我想，您之前也談到 MonTitan 到 2027 年的收入將約佔 10%。

I guess what would you need to see to be able to lift that metric given it does sound like things are moving really well now?

考慮到現在聽起來事情進展得非常順利，我想你需要看到什麼才能提升這個指標？

Yeah.

是的。

Look, I mean, we're still early in the process here, right?

你看，我的意思是，我們現在還處於這個過程的早期階段，對吧？

I mean, we're beginning to scale.

我的意思是，我們開始擴大規模。

We started shipping last quarter.

我們上個季度開始出貨。

We're obviously very optimistic about the wins that we have and the interest that we've generated.

我們顯然對我們所取得的勝利以及所激發的興趣非常樂觀。

Until we start seeing the scale more meaningfully, we'll stick with the 10% target in 2027 for now.

在我們開始更有意義地看到這一規模之前，我們暫時將堅持 2027 年 10% 的目標。

And as we have more data points, to Wallace's point, we can scale that faster and larger, and we have the data points to support that.

正如華萊士所說，隨著我們擁有更多的數據點，我們可以更快、更大規模地擴大規模，我們有數據點來支持這一點。

We obviously want to bring that to your attention sooner rather than later when that's available.

當有可用資訊時，我們顯然希望儘早提請您注意。

Awesome.

驚人的。

Thanks again.

再次感謝。

Thank you.

謝謝。

Thank you.

謝謝。

I am showing no further questions.

我沒有其他問題。

I'll now turn the conference back to Mr. Wallace Kou for closing comments.

現在我將會議交還給 Wallace Kou 先生，請他作最後發言。

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

感謝大家今天的參與以及對 Silicon Moss 的持續關注。

We will be attending several investor conferences over the next few months.

我們將在接下來的幾個月裡參加幾次投資者會議。

The schedule of these events will be posted on the Investor Relations section of our corporate website and look forward to speaking with you at these events.

這些活動的日程安排將在我們公司網站的投資者關係部分公佈，我們期待在這些活動中與您交談。

Thank you, everyone, for joining us today.

感謝大家今天的參與。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。