超微電腦 (SMCI) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by.

女士們先生們，美好的一天，感謝你們的支持。

Welcome to the Super Micro Computer Inc.

歡迎來到 Super Micro Computer Inc.

First Quarter Fiscal 2018 Business Update Conference Call.

2018 財年第一季度業務更新電話會議。

The company's news release issued earlier today is available from it's website at www.supermicro.com.

該公司今天早些時候發布的新聞稿可從其網站 www.supermicro.com 獲取。

(Operator Instructions) As a reminder, this call is being recorded, Thursday, October 26, 2017.

（操作員說明）提醒一下，本次通話正在錄音，時間是 2017 年 10 月 26 日，星期四。

A replay of this call will be accessible until midnight, Thursday, November 9, 2017, by dialing 1 (844) 512-2921 and entering replay pin 9330570.

通過撥打 1 (844) 512-2921 並輸入重播密碼 9330570，可以在 2017 年 11 月 9 日星期四午夜之前重播此電話。

International callers should dial 1 (412) 317-6671.

國際來電者應撥打 1 (412) 317-6671。

With us today are Charles Liang, Chairman and Chief Executive Officer; and Perry Hayes, Senior Vice President, Investor Relations.

今天與我們同在的是董事長兼首席執行官 Charles Liang；和投資者關係高級副總裁 Perry Hayes。

And now I'd like to turn the conference over to Mr. Hayes.

現在我想把會議轉交給海耶斯先生。

Mr. Hayes, please go ahead, sir.

海耶斯先生，請繼續，先生。

Good afternoon, and thank you for attending Super Micro's business update conference call for the first fiscal quarter 2018, which ended September 30, 2017.

下午好，感謝您參加 Super Micro 於 2017 年 9 月 30 日結束的 2018 年第一財季業務更新電話會議。

As previously disclosed by the company, additional time is needed for the company to compile and analyze certain information and documentation and finalize its financial statements as well as complete a related audit committee review in order to permit the company's independent registered public accounting firm to complete its audit of the financial statements to be incorporated in the Form 10-K and complete its audit of the company's internal controls over financial reporting as of June 30, 2017.

正如公司先前披露的那樣，公司需要更多時間來編制和分析某些信息和文件並最終確定其財務報表以及完成相關的審計委員會審查，以使公司的獨立註冊會計師事務所能夠完成其對將納入 10-K 表格的財務報表進行審計，並完成對公司截至 2017 年 6 月 30 日的財務報告內部控制的審計。

Based on these delays, during today's conference call, Super Micro will address business and market trends from the first fiscal quarter of 2018 and will discuss estimated financial results -- but reference to any financial results are preliminary and subject to change based on finalized results contained in future filings with the SEC.

基於這些延遲，在今天的電話會議上，Super Micro 將討論 2018 年第一財季的業務和市場趨勢，並將討論估計的財務結果——但對任何財務結果的參考都是初步的，可能會根據所包含的最終結果進行更改在未來向美國證券交易委員會提交的文件中。

By now you should have received a copy of today's news release that was distributed at the close of regular trading and is available on the company's website.

到現在為止，您應該已經收到一份今天的新聞稿，該新聞稿是在正常交易結束時分發的，可以在公司網站上找到。

Before we start, I'll remind you that our remarks include forward-looking statements.

在我們開始之前，我會提醒您，我們的言論包含前瞻性陳述。

There are a number of risk factors that could cause Super Micro's future results to differ materially from our expectations.

有許多風險因素可能導致 Super Micro 的未來業績與我們的預期存在重大差異。

You can learn more about these risks in the press release we issued earlier this afternoon, our Form 10-K for fiscal 2016 and our other SEC filings.

您可以在我們今天下午早些時候發布的新聞稿、我們的 2016 財年 10-K 表格和我們向美國證券交易委員會提交的其他文件中了解更多關於這些風險的信息。

All of those documents are available from the Investor Relations page at Super Micro's website.

所有這些文件都可以從 Super Micro 網站的投資者關係頁面獲得。

We assume no obligation to update any forward-looking statements.

我們不承擔更新任何前瞻性陳述的義務。

Most of today's presentation will refer to non-GAAP financial results and outlooks.

今天的大部分演講將提及非 GAAP 財務結果和展望。

At the end of today's prepared remarks, we will have a Q&A session, which sell-side analysts will be permitted to ask questions.

在今天準備好的評論結束時，我們將舉行問答環節，允許賣方分析師提問。

Questions should be directed to the company's business update covered in today's call.

問題應針對今天電話會議中涵蓋的公司業務更新。

The company will not address any questions regarding the delay in the filing of the company's 10-K.

公司將不會解決任何有關延遲提交公司 10-K 的問題。

I'll now turn the call over to Charles Liang, Chairman and Chief Executive Officer.

我現在將電話轉交給董事長兼首席執行官查爾斯梁。

Now thank you, Perry, and good afternoon, everyone.

現在謝謝你，佩里，大家下午好。

Let me summarizes our first quarter.

讓我總結一下我們的第一季度。

(inaudible) Super Micro launched last quarter.

（聽不清）Super Micro 上個季度推出。

We have sped up our already strong growth in revenue market share and brand name value.

我們加快了本已強勁的收入市場份額和品牌價值增長。

Our new quarter results come from that we had been and continue to be the first tier, growing tier 1 (inaudible) provider, capable of delivering first-to-market product innovation at a global scale with quality management software service and support.

我們新的季度業績來自於我們一直並將繼續成為第一梯隊、不斷增長的第一梯隊（聽不清）供應商，能夠通過質量管理軟件服務和支持在全球範圍內提供率先上市的產品創新。

In addition to strong revenue growth, we kicked off several strategical product in strong margin technology market that should deliver significant future growth.

除了強勁的收入增長外，我們還在利潤豐厚的技術市場推出了幾款戰略產品，這些產品應該會帶來顯著的未來增長。

Earlier in the quarter, we launched our complete portfolio of new X11 products based on the new Intel Xeon Scalable processor or Skylake family.

本季度早些時候，我們推出了基於全新英特爾至強可擴展處理器或 Skylake 系列的全新 X11 產品的完整產品組合。

This launch was the product of over 2 years of effort with about 2,000 of engineer.

此次發布是約 2,000 名工程師 2 年多努力的成果。

As a result, we were ready at the launch with over 100 product offering.

因此，我們在發佈時已準備好提供 100 多種產品。

The X11 business quickly ramp with new systems representing 12% of all processors shipped.

X11 業務迅速增長，新系統佔所有處理器出貨量的 12%。

The key to the successful ramp was the breadth of our portfolio and our time-to-market advantage with powerful new technology built into the new platform.

成功提升的關鍵是我們產品組合的廣度以及我們在新平台中內置強大新技術的上市時間優勢。

We will continue to leverage our new product advantage in the coming quarter and ramp continuously.

我們將在下個季度繼續利用我們的新產品優勢並持續增長。

Computer system accounted for a great portion of our business at approximately 75% of our overall revenue.

計算機系統占我們業務的很大一部分，約占我們總收入的 75%。

The growth of computer systems, it has been driven by new technologies, such as support of (inaudible) NVMe, higher memory density, accelerated computing, higher TDP CPU support, and higher bandwidth connectivity.

計算機系統的發展受到新技術的推動，例如支持（聽不清）NVMe、更高的內存密度、加速計算、更高的 TDP CPU 支持和更高的帶寬連接。

These technologies benefit from our in-house engineering, design and dedication to provide a customer with higher performance, visibility and quality solutions.

這些技術得益於我們的內部工程、設計和致力於為客戶提供更高性能、可見性和質量的解決方案。

Moreover, our computer system carry a higher average sales price ASP and strategically increase the opportunity for additional management software and global service revenue.

此外，我們的計算機系統具有更高的平均售價 ASP，並在戰略上增加了額外管理軟件和全球服務收入的機會。

Delivering superior product and data center technology to the market continues to be the cornerstone of our company.

向市場提供卓越的產品和數據中心技術仍然是我們公司的基石。

And this quarter, we saw strong performance for our twin -- (inaudible) systems, storage, especially our All-Flash NVMe (inaudible) platform, GPU-accelerated computing and blade servers.

本季度，我們看到了雙胞胎（聽不清）系統、存儲的強勁表現，尤其是我們的全閃存 NVMe（聽不清）平台、GPU 加速計算和刀片服務器。

Our new multiple-node BigTwin architecture is one of our fastest-growing new product launched ever.

我們新的多節點 BigTwin 架構是我們推出的增長最快的新產品之一。

The BigTwin provide both higher density and efficiency than traditional (inaudible), while supporting state-of-the-art features, including All-Flash NVMe, 24 DIMM memory and the highest-performing Intel Xeon Scalable processors.

BigTwin 提供比傳統（聽不清）更高的密度和效率，同時支持最先進的功能，包括全閃存 NVMe、24 DIMM 內存和性能最高的英特爾至強可擴展處理器。

Our (inaudible) NVMe server also perform well.

我們的（聽不清）NVMe 服務器也表現良好。

With more expandability option, they are optimized for high-performance storage, analytics and in memory application.

憑藉更多可擴展性選項，它們針對高性能存儲、分析和內存應用程序進行了優化。

For example, the 2U (inaudible) NVMe (inaudible) platform delivered a record-breaking 80 million tie ups.

例如，2U（聽不清）NVMe（聽不清）平台交付了創紀錄的 8000 萬次連接。

The design utilize an unbroken architecture allowing (inaudible) PCI-E band to the (inaudible) NVMe SSD directly for uncompromised direct connection to achieve maximum storage performance.

該設計利用完整的架構，允許（聽不清）PCI-E 頻段直接連接到（聽不清）NVMe SSD，以實現不妥協的直接連接，以實現最大的存儲性能。

In storage, which accounted for 20% of our overall business, we saw strong customer demand.

在占我們整體業務 20% 的存儲領域，我們看到了強勁的客戶需求。

Our capacity maximizes top-loading storage portfolio, is anchored by our 90- and 60-bay storage server and (inaudible).

我們的容量最大化頂部裝載存儲組合，由我們的 90 和 60 托架存儲服務器和（聽不清）錨定。

To strengthen our portfolio and increase customer choice and efficiency, we have started high-volume promotion -- high-volume production the 45-bay storage server with NVMe caching option and high TDP CPU support.

為了加強我們的產品組合併增加客戶的選擇和效率，我們已經開始大批量推廣——大批量生產具有 NVMe 緩存選項和高 TDP CPU 支持的 45 盤位存儲服務器。

We have also launched a new category of 1U peta-scale products.

我們還推出了新類別的 1U peta 級產品。

The All-Flash NVMe 1U (inaudible) of flash; and the 1U SuperServer which support for 32 hot-swappable NVMe SSD providing high-performance capacity at petabyte scale.

閃存的全閃存 NVMe 1U（聽不清）； 1U SuperServer 支持 32 個熱插拔 NVMe SSD，提供 PB 級的高性能容量。

Think about that, 1 petabyte in 1U.

想一想，1U 中有 1PB。

The new 1U NVMe storage server and (inaudible) provide a shared storage pools.

新的 1U NVMe 存儲服務器和（聽不清）提供共享存儲池。

They are definitely becoming the (inaudible) hardware infrastructure for demanding big data analytic applications, such as autonomous driving and real-time financial fraud detection.

它們無疑正在成為要求苛刻的大數據分析應用程序（例如自動駕駛和實時金融欺詐檢測）的（聽不清）硬件基礎設施。

Up to 12 host can be directly connect to the 1U pool NVMe storage.

最多 12 台主機可以直接連接到 1U 池 NVMe 存儲。

Alternatively, for customer who want to deploy an NVMe (inaudible) solution, hundreds of host can be connect to the high-performing NVMe storage over (inaudible) or PCI-E.

或者，對於想要部署 NVMe（聽不清）解決方案的客戶，數百台主機可以通過（聽不清）或 PCI-E 連接到高性能 NVMe 存儲。

After the market shifted to more flash-based solutions, we see much stronger adoption of NVMe in both hybrid as well as All-Flash solution, especially for OpenStack, cloud and hyper-converged solution.

在市場轉向更多基於閃存的解決方案之後，我們看到 NVMe 在混合和全閃存解決方案中的採用率大大提高，尤其是對於 OpenStack、雲和超融合解決方案。

Coming this quarter, our new (inaudible) NVMe solutions will be first-to-market with truly NVMe-optimized server that provides higher density bandwidth and improved latency for big data analytics and rack scale solution.

本季度，我們的新（聽不清）NVMe 解決方案將率先上市，配備真正針對 NVMe 優化的服務器，可為大數據分析和機架規模解決方案提供更高密度的帶寬和改進的延遲。

We are especially excited about our high-performance and accelerated computing business, which was approximately 11% of our total revenue for the first quarter.

我們對我們的高性能和加速計算業務感到特別興奮，該業務約佔第一季度總收入的 11%。

And that grew more than double from last year.

這比去年增長了一倍多。

We continue to develop our accelerated computing product line targeting machinery, people learning applications and AI.

我們繼續開發針對機械、人員學習應用程序和人工智能的加速計算產品線。

As we indicated last quarter, we are working with a number of automotive companies for autonomous driving technology, which require accelerated computing as well as NVMe storage solution to achieve that desire compute, IOPS and latency combination.

正如我們上個季度所指出的，我們正在與多家汽車公司合作開發自動駕駛技術，這需要加速計算和 NVMe 存儲解決方案來實現所需的計算、IOPS 和延遲組合。

Most recently, Super Micro announced optimized solution for the new NVIDIA Tesla V100 GPU.

最近，Super Micro 宣布了針對新的 NVIDIA Tesla V100 GPU 的優化解決方案。

Our 4U system support up to 8 V100 GPUs with (inaudible) design for HPC cluster and the hyperscale workload.

我們的 4U 系統支持多達 8 個 V100 GPU（聽不清）設計用於 HPC 集群和超大規模工作負載。

We also have a single root complex PCI-E design that support up to 10 GPU in 4U, which has shown dramatically improved GPU peer-to-peer communication and performance compared with previous generations.

我們還有一個單根複雜的 PCI-E 設計，在 4U 中支持多達 10 個 GPU，與前幾代產品相比，它顯著改善了 GPU 對等通信和性能。

For even greater GPU density and scalability, our 1U solution that support up to 4 V100 GPUs per system or up to (inaudible) GPU per standard rack.

為了獲得更高的 GPU 密度和可擴展性，我們的 1U 解決方案支持每個系統最多 4 個 V100 GPU 或每個標準機架最多（聽不清）GPU。

Other than GPU, we have developed a brand-new blade solution featuring the new (inaudible) family accelerator from Intel.

除了 GPU 之外，我們還開發了一種全新的刀片解決方案，該解決方案採用了來自英特爾的全新（聽不清）系列加速器。

Our 8U SuperBlade can now be configured with a mix of Scalable processor blade and (inaudible) blade optimized for AI training and inference application.

我們的 8U SuperBlade 現在可以配置可擴展處理器刀片和（聽不清）針對 AI 訓練和推理應用優化的刀片。

The (inaudible) blade is just a start of our (inaudible) learning engagement into this exciting market.

（聽不清）刀片只是我們（聽不清）學習參與這個令人興奮的市場的開始。

By partnering with the leaders, the leading accelerated computing and semiconductor company, we develop next-generation (inaudible) learning and AI platform.

通過與領先的加速計算和半導體公司領導者合作，我們開發了下一代（聽不清）學習和人工智能平台。

We had invest additional engineering resource this quarter to codesign these solution.

本季度我們投入了額外的工程資源來共同設計這些解決方案。

They will present us with significant market opportunity going forward.

他們將為我們提供未來的重要市場機會。

We also launched a new 6U SuperBlade solution designed to future-proof our customers' investment.

我們還推出了新的 6U SuperBlade 解決方案，旨在確保客戶的投資面向未來。

Codesigned with Intel, that disaggregated architecture enable us independent upgrade for CPU and memory, I/O, storage as well as the power and cooling.

與英特爾共同設計，這種分解架構使我們能夠獨立昇級 CPU 和內存、I/O、存儲以及電源和冷卻。

This low initial acquisition cost and TCO, the new architecture provide higher return on investment by supporting market for generation of independent technology refresh.

這種較低的初始購置成本和 TCO，新架構通過支持市場進行獨立技術更新，提供更高的投資回報。

SuperBlade and BigTwin system are optimal block for rack-scale solutions.

SuperBlade 和 BigTwin 系統是機架級解決方案的最佳模塊。

Along with the Super Micro RSD software, our rack-scale total solution empower cloud service provider, (inaudible) and Fortune 500 company to develop their own agile-efficient software-defined data center.

與 Super Micro RSD 軟件一起，我們的機架級整體解決方案使雲服務提供商（聽不清）和財富 500 強公司能夠開發他們自己的敏捷高效的軟件定義數據中心。

The solution deliver up to 54% improvement in cooling power efficiency, preventing (inaudible) business solution (inaudible) with open industry standard (inaudible) and Redfish API designed to lower management overhead in large-scale data center and other enterprises.

該解決方案通過開放的行業標準（聽不清）和旨在降低大型數據中心和其他企業的管理開銷的 Redfish API，將冷卻功率效率提高高達 54%，防止（聽不清）業務解決方案（聽不清）。

Before ending, let me circle back with some detail on business side.

在結束之前，讓我回顧一下業務方面的一些細節。

From a geography perspective, North America remain consistent at more than 50% of our business.

從地理角度來看，北美在我們業務中的佔比保持穩定，超過 50%。

Asia Pacific, our second-strongest geography, (inaudible) growth, and we expect that it will be more than 25% of our overall business, with China making up the majority.

亞太地區是我們第二強的地區（聽不清）增長，我們預計它將占我們整體業務的 25% 以上，其中中國占大部分。

India was lower as seasonal effect impacted result.

由於季節性影響結果，印度走低。

Here are some updates on a few other key market verticals for this quarter.

以下是本季度其他幾個主要垂直市場的一些更新。

Our IoT embedded activity continue to represent approximately 10% of our business.

我們的物聯網嵌入式活動繼續占我們業務的大約 10%。

Internet data center, IDC, improved due to more project wins, and we expect it will be approximately 10% of our business.

互聯網數據中心，IDC，由於贏得更多項目而有所改善，我們預計它將占我們業務的 10% 左右。

The overall enterprise business continue to grow.

企業整體業務持續增長。

Our China business is in the range of low-to-middle 20% of our business.

我們的中國業務占我們業務的 20% 左右。

Super Micro's momentum of strong growth continue into our fourth quarter of 2018.

Super Micro 的強勁增長勢頭持續到 2018 年第四季度。

We recently expect to report revenue for the quarter at the top end of our original revenue guidance, which will be about 29% growth from last year.

我們最近預計本季度的收入將達到我們最初收入指引的上限，這將比去年增長約 29%。

As I had mentioned earlier, we are initially multiple -- we have initiated multiple high-potential platform codeveloped with our strategic partner during this quarter.

正如我之前提到的，我們最初是多個——我們在本季度啟動了與我們的戰略合作夥伴共同開發的多個高潛力平台。

We have invest our resources to embrace this new opportunity ahead of us, and we will eventually execute our strategy.

我們已經投入資源來迎接擺在我們面前的這個新機遇，我們最終會執行我們的戰略。

In summary, we have begun fiscal 2018 on a strong note.

總之，我們以強勁的勢頭開啟了 2018 財年。

With our fiscal quarter revenue continuing the momentum of the past several quarters, we are fully prepared for the ramp or the technology transition that is just beginning.

隨著我們財政季度收入延續過去幾個季度的勢頭，我們為剛剛開始的增長或技術轉型做好了充分準備。

With our industry-leading product line now shipping, we are on track for a $3 billion run rate in the December quarter.

隨著我們行業領先的產品線現已出貨，我們有望在 12 月季度實現 30 億美元的運行率。

Let me now turn the call over to Perry.

現在讓我把電話轉給佩里。

Thank you, Charles.

謝謝你，查爾斯。

As indicated previously, we will have a Q&A session in which sell-side analysts would -- permitted to ask questions.

如前所述，我們將舉行問答環節，允許賣方分析師提問。

I would like to remind you that your questions should be directed to the business update that we have provided.

我想提醒您，您的問題應該針對我們提供的業務更新。

We will not answer any questions related to the delayed filing of our 10-K.

我們不會回答與延遲提交 10-K 相關的任何問題。

Operator, at this time, we're ready for questions.

接線員，此時，我們準備好提問了。

(Operator Instructions) We'll now take our first question from Alex Kurtz with KeyBanc Capital Markets.

（操作員說明）我們現在將接受來自 KeyBanc Capital Markets 的 Alex Kurtz 的第一個問題。

I have to say, this is unusual circumstances.

我不得不說，這是不尋常的情況。

So I have to say the questions I need to ask are related to the business update.

所以我不得不說我需要問的問題與業務更新有關。

And hopefully, you can touch on them at some level.

希望您可以在某種程度上觸及它們。

What gives you the confidence to provide forward guidance into the current quarter given that the audit committee is reviewing transactions that may still be part of the business today?

鑑於審計委員會正在審查今天可能仍屬於業務一部分的交易，是什麼讓您有信心為當前季度提供前瞻性指導？

Thanks very much.

非常感謝。

It’s a good question.

這是個好問題。

We feel pretty confident that in the revenue number that we've indicated today, that it is within a prudent range.

我們非常有信心，在我們今天指出的收入數字中，它處於謹慎的範圍內。

And even though we really can't provide a total -- a complete baseline yet because 2017 isn't finalized, we do feel confident that within this range that we've indicated, at $675 million to $685 million, that it is an appropriate range.

儘管我們真的不能提供一個總數——一個完整的基線，因為 2017 年還沒有最終確定，但我們確實相信，在我們已經指出的這個範圍內，6.75 億美元到 6.85 億美元，這是一個合適的範圍。

Going forward, we are continuing with the momentum of business that we've had in the past, if you look back to starting with last December, and it's based on a great mix of new customers and market verticals that are all growing, as you can see from what we've reported.

展望未來，如果你回顧去年 12 月開始，我們將繼續保持過去的業務勢頭，它基於大量新客戶和不斷增長的垂直市場，因為你從我們的報導中可以看出。

So we feel pretty confident.

所以我們很有信心。

In addition, as we've been saying for several quarters as well, we think that we'll end the calendar quarter at a $3 billion run rate.

此外，正如我們幾個季度以來一直在說的那樣，我們認為我們將以 30 億美元的運行率結束日曆季度。

And Charles has just reiterated that in his remarks.

查爾斯剛剛在他的發言中重申了這一點。

Okay.

好的。

I'm just still a little confused by why even go out on a limb and provide December guidance.

我只是對為什麼還要冒險提供 12 月的指導感到有點困惑。

But maybe just it’s something you just can't talk to right now.

但也許只是你現在無法與之交談的東西。

Well, we do think it's important to provide trend and the growth indicate -- direction of growth.

好吧，我們確實認為提供趨勢和增長表明增長方向很重要。

And it was also indicated in the current quarter number, which we just provided you as well.

它也顯示在我們剛剛提供給您的當前季度編號中。

But again, I just mentioned, I mean, $3 billion run rate should be achievable.

但是，我剛才再次提到，我的意思是，30 億美元的運行率應該是可以實現的。

Last question for me.

我的最後一個問題。

Can you give us any update on your CFO, Howard, and his status with the company at this point?

您能否向我們介紹一下您的首席財務官霍華德及其目前在公司的狀況？

Howard is working very hard on the issues related to the filing of the 10-K at this moment.

霍華德目前正在非常努力地處理與提交 10-K 相關的問題。

We'll now take our next question with Brian Alger with Roth Capital partners.

我們現在將與 Brian Alger 和 Roth Capital 合作夥伴一起回答下一個問題。

Just for a clarification point, reading through the release today and kind of going back to the delay that we're incurring here on the 10-K.

只是為了澄清一點，通讀今天的發布，有點回到我們在 10-K 上發生的延遲。

To be clear, what's being evaluated by the audit committee isn't whether or not the revenues were real, but rather not the documentation around which period the revenues were recognized, is that the case?

需要明確的是，審計委員會正在評估的不是收入是否真實，而是圍繞確認收入的時間段的文件，是這樣嗎？

Brian, as indicated, we're not going to answer any questions related to the filing of the 10-K.

布賴恩，如前所述，我們不會回答任何與 10-K 歸檔相關的問題。

Okay.

好的。

I thought it was in the press release today, but okay.

我以為它在今天的新聞稿中，但沒關係。

Coming back to the update with the margins that you guys -- the range of gross margins that you're providing, it would indicate that we're not seeing any improvement in the dynamics from the memory side of the equation.

回到你們的利潤率更新——你們提供的毛利率範圍，這表明我們沒有看到等式的內存方面的動態有任何改善。

Is that still what's pressuring the gross margins at this point?

在這一點上，這仍然是毛利率的壓力嗎？

Or has there been a shift from product dynamics?

還是產品動態發生了轉變？

Yes.

是的。

I guess the memory price (inaudible) is a little busy this quarter again.

我猜本季度內存價格（聽不清）又有點忙了。

But this mean we have a good inventory, I mean, in good relationship with vendor.

但這意味著我們有良好的庫存，我的意思是，與供應商保持良好的關係。

So we believe business will continue to grow smoothly.

因此，我們相信業務將繼續平穩增長。

Okay.

好的。

And are you continuing to purchase inventory in advance for key customers, specifically memory inventory?

您是否繼續為主要客戶提前採購庫存，特別是內存庫存？

Kind of mixed.

有點混。

But the overall memory is in good condition -- in a good condition, I would like to say overall.

但總體內存狀況良好——狀況良好，我想說總體而言。

Yes, I think you can safely say what we've been doing over the past several quarters, we are continuing to do that.

是的，我認為你可以放心地說出我們在過去幾個季度所做的事情，我們將繼續這樣做。

We are continuing to hold inventory going into the quarter.

我們將繼續持有進入本季度的庫存。

It's still not enough to see us through the whole quarter.

仍然不足以讓我們度過整個季度。

As we've talked with investors previously, we are, during the quarter at some point, still acquiring inventory to support our customers.

正如我們之前與投資者交談過的那樣，在本季度的某個時候，我們仍在收購庫存以支持我們的客戶。

Okay.

好的。

And then other than the efforts going on surrounding the review here with the 10-K, has there been any structural changes that would affect the operating expenses of the company outside of normal business operations?

然後，除了圍繞 10-K 審查所做的努力之外，是否有任何結構性變化會影響公司在正常業務運營之外的運營費用？

No.

不。

Everything is pretty much the same.

一切都差不多。

We have a great business.

我們的生意很好。

We wanted to do this business update because it is a very strong business.

我們想進行此業務更新，因為它是一項非常強大的業務。

It is growing very strongly, and we have tremendous opportunities.

它的增長非常強勁，我們有巨大的機會。

As Charles mentioned in his remarks, we have great opportunities in new projects with some of the leading semiconductor companies for revolutionary designs in AI.

正如查爾斯在他的發言中提到的那樣，我們在與一些領先的半導體公司合作的新項目中有很大的機會進行人工智能的革命性設計。

And as a result of that, we've added some engineering headcount in the previous quarter.

因此，我們在上一季度增加了一些工程人員。

That is one of the things that impacted operating expense somewhat this quarter.

這是本季度在一定程度上影響運營費用的因素之一。

But no, everything is on track.

但不，一切都在正軌上。

Especially the new processors, Skylake and NVMe product line have been all ready to ship.

尤其是新處理器、Skylake和NVMe產品線已經全部準備就緒。

So we believe that business will continue to grow strongly.

因此，我們相信業務將繼續強勁增長。

Okay.

好的。

And then just one final one.

然後是最後一個。

You mentioned IoT and data center each being roughly about 10% of the revenues.

你提到物聯網和數據中心各佔收入的大約 10%。

I'm curious how the storage business was tracking for the company, given how fast that's been growing for you guys over the past couple of quarters.

考慮到過去幾個季度你們的增長速度有多快，我很好奇公司的存儲業務發展情況如何。

Yes.

是的。

Storage business was -- we called out here that it's greater than 20% of the entire business.

存儲業務——我們在這裡指出，它佔整個業務的 20% 以上。

It continues to grow.

它繼續增長。

In fact, I think you could say this quarter, we actually saw our open storage grow a bit faster based on some of these designs, which Charles called out, especially the top load, especially some of the NVMe solutions, they're growing very rapidly.

事實上，我想你可以說這個季度，我們實際上看到我們的開放式存儲基於其中一些設計增長得更快，Charles 提到了這些設計，尤其是頂部負載，尤其是一些 NVMe 解決方案，它們的增長速度非常快迅速。

For the big data, AI, HPC, and we have been growing very well, including storage solution in -- for that market.

對於大數據、人工智能、高性能計算，我們一直發展得很好，包括針對該市場的存儲解決方案。

(Operator Instructions) We will now take our next question from Nehal Chokshi with Maxim Group.

（操作員說明）我們現在將接受來自 Maxim Group 的 Nehal Chokshi 的下一個問題。

There will be no presentation or CFO commentary because, obviously, the results have not been audited yet, correct?

不會有任何介紹或首席財務官評論，因為很明顯，結果尚未經過審計，對嗎？

That is correct.

那是對的。

Okay.

好的。

Charles did run through some of the vertical data.

查爾斯確實瀏覽了一些垂直數據。

But Perry, could you just run through that one more time real quickly.

但是佩里，你能不能再快速地講一遍。

I'm sorry.

對不起。

Yes, sure.

是的，當然。

We said storage was greater than 20% of our business; accelerated computing, also 11% -- well, greater than 11%.

我們說存儲占我們業務的 20% 以上；加速計算，也是 11%——嗯，大於 11%。

IDC was approximately 10%; IoT, again, approximately 10%; channel was sort of mid- to low 40% of total business; and enterprise was approximately mid single digit, call it, 5%, a little bit more than 5%.

IDC約為10%；物聯網，大約 10%；渠道佔總業務的 40% 左右；企業大約是中等個位數，稱之為 5%，略高於 5%。

Okay.

好的。

And the reason why there's more uncertainty around what channel was as a percent of revenue is that that's where the uncertainty resides with the one revenue recognition.

關於哪個渠道佔收入的百分比存在更多不確定性的原因是，不確定性存在於單一收入確認中。

Should be getting done.

應該搞定了。

Is that a correct interpretation?

這是正確的解釋嗎？

Again, Nehal, we're not going to discuss anything related to the 10-K filing.

再一次，Nehal，我們不會討論與 10-K 申請相關的任何事情。

Okay.

好的。

All right.

好的。

And then what's the status of the repurchase program?

那麼回購計劃的狀態如何？

I believe that it was -- it expired, and I think you repurchased close to $20 million at one point in time.

我相信它是——它已經過期了，我認為你在某個時間點回購了近 2000 萬美元。

Would you guys consider opening this back up?

你們會考慮打開這個備份嗎？

Yes.

是的。

Your numbers are correct.

你的數字是正確的。

We did have it.

我們確實擁有它。

It expired in June.

它在六月到期。

It has not been reauthorized.

它沒有被重新授權。

Would you consider -- is there a proposal on the table or consider proposing it to restart the repurchase program?

您會考慮——是否有提案或考慮提議重新啟動回購計劃？

It always is something that's in the back of our minds.

它總是在我們的腦海中。

At this point in time, we want to invest in our business to provide a greater return for shareholders.

在這個時候，我們希望投資於我們的業務，為股東提供更大的回報。

Okay.

好的。

And it sounded like inventory is up Q-over-Q and, therefore, your cash conversion cycle continues (inaudible) year-over-year.

聽起來庫存比上一季度增加了，因此，您的現金轉換週期繼續（聽不清）同比增長。

Because you're making sure that you have enough inventory to fill up demand, is that correct?

因為您要確保有足夠的庫存來滿足需求，對嗎？

That is not correct, Nehal.

那是不正確的，尼哈爾。

We haven't provided that level of detail.

我們沒有提供那麼詳細的信息。

Cash was up somewhat higher than it was on the previous quarter, and that's pretty much the extent of what we've provided.

現金比上一季度略高，這幾乎就是我們提供的程度。

We'll take our next question from Mark Kelleher with D.A. Davidson.

我們將接受 Mark Kelleher 和 D.A. 的下一個問題。戴維森。

I know one of those numbers -- Perry, could you reiterate what percent of revenue was Skylake?

我知道其中一個數字——佩里，你能重申一下 Skylake 佔收入的百分比嗎？

I think that was given out.

我認為那已經給出了。

Yes, what we talked about is X11 platforms.

是的，我們談到的是 X11 平台。

X11 platforms represents the Skylake.

X11 平台代表 Skylake。

It also represents -- a portion of it is UP and DP.

它還代表——其中一部分是 UP 和 DP。

But overall, X11 represented approximately 12% of the total processors that we shipped out.

但總體而言，X11 約占我們出貨處理器總數的 12%。

And those processors typically carry higher gross margins, those systems, correct?

這些處理器通常具有更高的毛利率，那些系統，對嗎？

Basically.

基本上。

Yes, they do.

是的，他們有。

So that didn't seem to help the gross margins in the quarter.

因此，這似乎對本季度的毛利率沒有幫助。

Is that being offset by the memory issue being a little bit more significant?

這會被內存問題所抵消嗎？

We can't -- well, as we've been saying, we're very much in the early days of the ramp, okay.

我們不能——好吧，正如我們一直在說的，我們還處於斜坡的早期階段，好吧。

And the DP portion of X11 is still ahead of us.

X11 的 DP 部分仍然在我們前面。

We'll get a little bit more here in the December quarter, probably improve quite a bit.

我們將在 12 月季度在這裡獲得更多，可能會有所改善。

And then really, the ramp starts to take hold beginning the calendar year.

然後真的，斜坡開始在日曆年開始佔據上風。

As you know, that would be about 6 months since the launch, and that's when -- there starts to be a lot more allocation in the market.

如您所知，那將是自推出以來大約 6 個月，那時 - 市場上開始有更多的配置。

Gross margins, overall, were impacted by seasonal utilization, impacted by geographic mix with strong China revenue, impacted somewhat by product mix to more component-reliant systems.

總體而言，毛利率受到季節性利用率的影響，受到地域組合和中國收入強勁的影響，在一定程度上受到產品組合到更多依賴組件的系統的影響。

Plus, we're also in this transition phase from a mature Grantley life cycle technology to the new Xeon Skylake family, and so that's still going on.

另外，我們也正處於從成熟的 Grantley 生命週期技術到新的 Xeon Skylake 系列的過渡階段，所以這種情況仍在繼續。

And yes, there were some continuing component pricing at SSD and DRAM issues.

是的，在 SSD 和 DRAM 問題上有一些持續的組件定價。

It appears at this time we have no further questions.

看來此時我們沒有進一步的問題了。

I'd like to turn the call back over to Mr. Liang for any additional or closing remarks.

我想將電話轉回給梁先生，以徵求任何補充意見或結束意見。

Thank you for joining us today, and we're looking forward to talking to you at the end -- in the end of this quarter.

感謝您今天加入我們，我們期待在本季度末與您交談。

Thank you, everyone.

謝謝大家。

Have a great day.

祝你有美好的一天。

Thank you, ladies and gentlemen.

謝謝你們，女士們，先生們。

That does conclude the Super Micro First Quarter Fiscal 2018 Business Update Conference Call.

Super Micro 2018 財年第一季度業務更新電話會議到此結束。

We do appreciate your participation.

我們非常感謝您的參與。

You may disconnect at this time.

此時您可以斷開連接。

Thank you.

謝謝。