超微電腦 (SMCI) 2019 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer Inc. fourth quarter fiscal 2019 business update conference call. The company's news releases published issued earlier today are available from its website at www.supermicro.com. (Operator Instructions) Afterwards, securities analysts will be invited to participate in a question-and-answer session, but the entire call is open to all participants on a listen-only basis. As a reminder, this call is being recorded, Thursday, August 15, 2019. A replay of the call will be accessible until midnight, Thursday, August 29, 2019, by dialing 1 (844) 512-2921 and entering replay pin 5585132. International callers should dial 1 (412) 317-6671. With us today are Charles Liang, Chairman and Executive -- Chief Executive Officer; Kevin Bauer, Senior Vice President and Chief Financial Officer; and Perry Hayes, Senior Vice President, Investor Relations. And now I would like to turn the conference over to Mr. Hayes. Mr. Hayes, please go ahead, sir.

女士們先生們，美好的一天。謝謝你的支持。歡迎來到 Super Micro Computer Inc.2019 財年第四季度業務更新電話會議。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。（接線員說明）之後，將邀請證券分析師參加問答環節，但整個電話會議以只聽的方式向所有參與者開放。提醒一下，本次通話正在錄音，時間是 2019 年 8 月 15 日，星期四。通過撥打 1 (844) 512-2921 並輸入重播密碼 5585132，可以在 2019 年 8 月 29 日星期四午夜之前重播通話。國際來電者應撥打 1 (412) 317-6671。今天和我們在一起的是董事長兼執行總裁 Charles Liang； Kevin Bauer，高級副總裁兼首席財務官；和投資者關係高級副總裁 Perry Hayes。現在我想把會議轉交給海耶斯先生。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 fourth quarter fiscal 2019, which ended June 30, 2019. During today's conference call, Super Micro will address the company's preliminary financial results for the fourth quarter of fiscal 2019 and the company's effort to become more current with its remaining SEC filing.

下午好，感謝您參加 Super Micro 截至 2019 年 6 月 30 日的 2019 財年第四季度業務更新電話會議。在今天的電話會議上，Super Micro 將討論公司 2019 財年第四季度的初步財務業績，以及公司為更新其剩餘的 SEC 文件而做出的努力。

References to any financial results are preliminary and subject to change based on finalized results contained in future filings with the SEC. By now, you should have received a copy of the news release from the company that was distributed at the close of regular trading and is available on the company's website.

對任何財務結果的引用都是初步的，可能會根據未來向美國證券交易委員會提交的文件中包含的最終結果進行更改。到目前為止，您應該已經收到公司在常規交易結束時分發的新聞稿副本，可在公司網站上查閱。

Before we start, I'll remind you that our remarks include forward-looking statements. There are a number of risk factors that could cause Super Micro's future results to differ materially from our expectations. You can learn more about these risks in the press release we issued earlier this afternoon, our most recent 10-K filing for 2017 and our and other SEC filings. All of those documents are available from the Investor Relations page of Super Micro's website. We assume no obligation to update any forward-looking statements. Most of today's presentation will refer to non-GAAP financial results and outlook. At the end of today's prepared remarks, we will have a Q&A session for sell side analysts to ask questions.

在我們開始之前，我會提醒您，我們的言論包含前瞻性陳述。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。您可以在我們今天下午早些時候發布的新聞稿、我們最近的 2017 年 10-K 文件以及我們和其他 SEC 文件中了解更多關於這些風險的信息。所有這些文件都可以從 Super Micro 網站的投資者關係頁面獲得。我們不承擔更新任何前瞻性陳述的義務。今天的大部分介紹將涉及非 GAAP 財務結果和展望。在今天準備好的評論結束時，我們將有一個問答環節，供賣方分析師提問。

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。

Thank you, Perry, and good afternoon, everyone. Our first quarter revenue would be in the range of $825 million to $835 million, which exceeds the midpoint of our quarterly guidance of $800 million. It is 15% lower than last year and 11% higher than last quarter. For our fiscal year revenue was up approximately $3.5 billion and represent an increase of approximately 4% from last year. Non-GAAP earnings per share was in the range of $0.57 to $0.61 compared with a range of $0.75 to $0.79 last year and a range of $0.48 to $0.52 last quarter. System revenue was approximately 81% of total revenue. System ASP was a bit lower year-over-year mostly due to lower DRAM and then price, which impact revenue. We launched comprehensive portfolio of over 100 DIMM server and storage system, supporting the new Intel second-generation Xeon scalable processors code named Cascade Lake. The new product win was record performance and efficiency improvement to enterprise, cloud, 5G and AI workload with up to 50% better TCO. We have seen strong interest in these new products and [advance over our] new product that outpace previous [generation]. It was a challenging period following a traditional strong quarter. Volatile market conditions well documents trade tension and some key component price reduction impact our quarterly revenues. However, the trade challenge, including tariff impact, were minimized by our strong U.S.-based manufacturing presence and our distributed global manufacturing footprint in the U.S.A., Taiwan and in Netherlands. We also see positive signs with our key product lines such as BigTwin and SuperBlade, which achieved higher sales on both quarterly and yearly basis.

謝謝佩里，大家下午好。我們第一季度的收入將在 8.25 億美元至 8.35 億美元之間，超過了我們 8 億美元的季度指導的中點。它比去年低 15%，比上一季度高 11%。我們財政年度的收入增長了約 35 億美元，比去年增長了約 4%。非美國通用會計準則每股收益在 0.57 美元至 0.61 美元之間，而去年為 0.75 美元至 0.79 美元，上季度為 0.48 美元至 0.52 美元。系統收入約佔總收入的 81%。系統 ASP 同比略低，主要是由於 DRAM 和價格較低，這影響了收入。我們推出了超過 100 種 DIMM 服務器和存儲系統的綜合產品組合，支持代號為 Cascade Lake 的全新英特爾第二代至強可擴展處理器。新產品贏得了創紀錄的企業、雲、5G 和 AI 工作負載性能和效率提升，總擁有成本降低了 50%。我們已經看到了對這些新產品的濃厚興趣，並且 [advance over our] 新產品超過了上一代 [generation]。在傳統的強勁季度之後，這是一個充滿挑戰的時期。動蕩的市場狀況很好地證明了貿易緊張局勢和一些關鍵零部件的降價影響了我們的季度收入。然而，由於我們強大的美國製造業務以及我們在美國、台灣和荷蘭的分佈式全球製造足跡，包括關稅影響在內的貿易挑戰被最小化了。我們還看到了我們的主要產品線的積極跡象，例如 BigTwin 和 SuperBlade，它們在季度和年度基礎上都實現了更高的銷售額。

Importantly, we see great opportunities as our long-term investment in operation and improved internal efficiency and [resources]. And a growth of our key product lines assume the market demand for application optimized high-performance driven products have not declined.

重要的是，我們將巨大的機會視為我們對運營的長期投資以及提高內部效率和[資源]。我們的主要產品線的增長假設市場對應用程序優化的高性能驅動產品的需求沒有下降。

On the product side, we remain focused on delivering solutions based on our new resource saving architecture. With Super Micro's unique architecture, this aggregates measure major subsystems, separating compute, storage, I/O, power and cooling. Each of these though can be [differentiated] or upgrade independently, allowing data centers to reduce different cycle cost and their impact to the environment by reducing power consumption and [waste]. Some components, such as [longevity power supply,] encourage us then IoT devices can remain in [operation] for up to 12 years. Further saving achieved through [shared] power and cooling as well as free air cooling solutions. On a typical 3 to 4-year refresh cycle, Super Micro resource saving bandwidth deliver up to 30% [minimum] hardware cost of bandwidth from each refresh cycle. We continue to deliver [first-to-market] products, introducing a [first to] server and storage system that support all-flash EDSFF storage drive. This optimized NVMe drive deliver up to 6x more throughput and up to 5x latency reduction over traditional flash storage, which is ideal for the high-performing workload for application, requiring higher [AIs] such as autonomous driving, search engine, mission-critical database, artificial intelligence, HPC, scientific research and more. We believe EDSFF will become a main [common] storage form factor in the near future.

在產品方面，我們仍然專注於提供基於我們新的資源節約架構的解決方案。借助 Super Micro 的獨特架構，這種聚合測量主要子系統，將計算、存儲、I/O、電源和冷卻分開。雖然其中每一個都可以[差異化]或獨立昇級，但允許數據中心通過減少功耗和[浪費]來減少不同的周期成本及其對環境的影響。一些組件，例如 [長壽電源]，鼓勵我們物聯網設備可以保持 [運行] 長達 12 年。通過 [共享] 電源和冷卻以及自由空氣冷卻解決方案進一步節省成本。在典型的 3 到 4 年更新周期中，Super Micro 資源節省帶寬從每個更新周期中提供高達 30% [最低] 的帶寬硬件成本。我們繼續提供 [率先上市] 產品，推出 [率先] 支持全閃存 EDSFF 存儲驅動器的服務器和存儲系統。與傳統閃存相比，這種優化的 NVMe 驅動器可提供高達 6 倍的吞吐量和高達 5 倍的延遲減少，非常適合需要更高 [AI] 的應用程序的高性能工作負載，例如自動駕駛、搜索引擎、任務關鍵型數據庫、人工智能、HPC、科學研究等等。我們相信 EDSFF 將在不久的將來成為一種主要的 [通用] 存儲形式。

For 5G, Super Micro is committed to providing the most advanced solution for age, the modern micro data center and core networks that provide the security, IoT, multiple access edge computing. And open radio access network. The need for powerful server across a wide variety of implementation will only increase (inaudible) continue to grow out on 5G network. Super Micro H server aims to transform enterprise and they empower them with intelligent connectivity from IoT device to cloud. AI from H is also made possible as we provide, optimize and validated NVIDIA, CPU collaborating and EGX platform edge computing solution to our customers. Saving the best for last, let me have a brief review of our blending architectures with many innovations for high-speed connectivity design. This new product line (inaudible) connectivity [bandwidth] and computing power and computing [intensity]. Two of these new X86 projects are called [Hypo Rock Man] and (inaudible) service. The early availability is target of early Q1 2020. In summary, we see tremendous potential opportunities in our enterprise, cloud, 5G and AI. There we're benefited from Super Micro's resource saving solution. I'm very confident in the strength of our product portfolio and continue improvement of our operating fundamentals. Regarding the (inaudible) market cycle, our business model of first-to-market design that delivers breakthrough innovation in performance, efficiency and TCO [we have] achieved some [success]. Moreover, we will conveniently invest more effort in our strategic relationships to build a stronger presence in key markets and target the vertical customers. I expect this action will result in continued market share growth and improvement of our financial performance.

對於 5G，Super Micro 致力於提供最先進的時代解決方案，提供安全、物聯網、多接入邊緣計算的現代微型數據中心和核心網絡。並開通無線接入網。對跨各種實施的強大服務器的需求只會增加（聽不清）在 5G 網絡上繼續增長。Super Micro H 服務器旨在實現企業轉型，並為企業提供從物聯網設備到雲的智能連接。當我們為客戶提供、優化和驗證 NVIDIA、CPU 協作和 EGX 平台邊緣計算解決方案時，H 的 AI 也成為可能。最好的留到最後，讓我簡要回顧一下我們的混合架構與高速連接設計的許多創新。這個新產品線（聽不清）連接性 [帶寬] 和計算能力和計算 [強度]。其中兩個新的 X86 項目稱為 [Hypo Rock Man] 和（聽不清）服務。早期可用性是 2020 年第一季度初的目標。總之，我們在企業、雲、5G 和 AI 中看到了巨大的潛在機會。在那裡，我們受益於 Super Micro 的資源節約解決方案。我對我們產品組合的實力以及我們運營基礎的持續改善充滿信心。關於（聽不清）市場週期，我們率先上市設計的商業模式在性能、效率和 TCO 方面提供了突破性創新 [我們已經] 取得了一些 [成功]。此外，我們將方便地在我們的戰略關係中投入更多精力，以在關鍵市場建立更強大的影響力並瞄準垂直客戶。我預計此舉將導致市場份額持續增長並改善我們的財務業績。

And now, I will hand the section over to Kevin.

現在，我將把這個部分交給凱文。

Thank you, Charles. First, I will address the current health of the business by providing an overview of our financial performance for the fourth quarter of 2019. I will then make a few comments about our progress on our SEC filings. As Charles mentioned earlier, we estimate our fiscal fourth quarter revenue was within the range of $825 million to $835 million. Our geographies were lower on a year-over-year basis with EMEA approximately 14% lower, Asia, 19% lower and the U.S. 14% lower. Our estimated range of gross margin on both a GAAP and non-GAAP basis was from 14.7% to 14.9%.

謝謝你，查爾斯。首先，我將通過概述我們 2019 年第四季度的財務業績來解決當前業務的健康狀況。然後，我將就我們在 SEC 備案方面的進展發表一些評論。正如查爾斯之前提到的，我們估計第四財季收入在 8.25 億美元至 8.35 億美元之間。我們的地區同比下降，其中 EMEA 下降約 14%，亞洲下降 19%，美國下降 14%。我們根據 GAAP 和非 GAAP 估計的毛利率範圍為 14.7% 至 14.9%。

Our margin has steadily improved since last year and have benefited from improved customer mix, product mix and better component pricing. Operating expenses were slightly lower this quarter due to lower reserves for bad debt, offset by higher sales and marketing expense. We estimate non-GAAP diluted earnings per share range this quarter was within the range of $0.57 to $0.61 per share. We continue to generate cash and estimate cash generated from operations was approximately $81 million. After deducting CapEx of $11 million, we estimate free cash flow of approximately $70 million for the quarter. On a cumulative basis over the last 4 quarters, we estimate free cash flow was approximately $259 million. This quarter, our cash conversion cycle decreased to 91 days. The decrease was primarily due to a 21-day decrease in inventory days to 92 days. Actual inventory on a dollar basis declined sequentially. Our cash conversion cycle target remains 85 to 90 days.

自去年以來，我們的利潤率穩步提高，並受益於改善的客戶組合、產品組合和更好的組件定價。由於壞賬準備金減少，本季度運營費用略有下降，但被較高的銷售和營銷費用所抵消。我們估計本季度非 GAAP 攤薄後每股收益在每股 0.57 美元至 0.61 美元之間。我們繼續產生現金，估計運營產生的現金約為 8100 萬美元。扣除 1100 萬美元的資本支出後，我們估計本季度的自由現金流約為 7000 萬美元。在過去 4 個季度的累計基礎上，我們估計自由現金流約為 2.59 億美元。本季度，我們的現金周轉週期減少到 91 天。減少的主要原因是庫存天數從 21 天減少至 92 天。按美元計算的實際庫存環比下降。我們的現金轉換週期目標仍為 85 至 90 天。

Now let me comment on our progress on our remaining delinquent SEC filings. We recently completed our work on the fiscal 2018 financials and have submitted them for audit. We are now working on fiscal 2019 inclusive of the efforts, finalize revenue under both the 605 and 606 revenue recognition standard. And we will be under a 2-year engagement with our auditors for both fiscal years 2018 and 2019 that will enable some efficiency. The team remains focused on becoming fully current on our SEC filings.

現在讓我評論一下我們在剩餘的拖欠 SEC 文件方面的進展。我們最近完成了 2018 財年財務工作，並已提交審計。我們現在正致力於 2019 財年的工作，包括根據 605 和 606 收入確認標準確定收入。我們將在 2018 和 2019 財年與我們的審計師進行為期 2 年的合作，這將提高一些效率。該團隊仍然專注於全面了解我們向美國證券交易委員會提交的文件。

As indicated previously, we will have a Q&A session where sell side analysts will be 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。

(Operator Instructions) And we'll go first to Mehdi Hosseini from Susquehanna Financial Group.

（操作員說明）我們將首先聯繫 Susquehanna Financial Group 的 Mehdi Hosseini。

David Ryzhik for Mehdi. Just a quick question on gross margins. I believe they were down from the prior quarter, I guess, from around 15.5% to 14.7% to 14.9%. Just wondering what the dynamics were over there? Obviously, revenue ticked up, components' prices probably ticked down. So just wondering, what was driving the decline? And then I had a follow-up.

邁赫迪的 David Ryzhik。只是一個關於毛利率的快速問題。我相信他們比上一季度有所下降，我猜，從大約 15.5% 到 14.7% 到 14.9%。只是想知道那邊的動態是什麼？顯然，收入上升，零部件價格可能下降。所以只是想知道，是什麼導致了下降？然後我進行了跟進。

Sure. No problem. This is Kevin. Last quarter, when we highlighted the fact that we were in the mid-15s, we cautioned the group that we -- it looked like we had a very good quarter in terms of everything aligning up perfectly. And as we talked to this same question last quarter, we highlighted the fact that we were in the mid-13s not too long ago, had broached 14% towards the midyear of 2019. And we're in between 14% and 15%, and so, we highlighted that as being some steady progress as we went through the quarters. So we highlighted that, that last quarter, things lined up very, very well. So I don't necessarily think it's decline. I think that our continued progress and it's not perfectly linear.

當然。沒問題。這是凱文。上個季度，當我們強調我們處於 15 歲中期這一事實時，我們提醒團隊我們 - 就一切完美對齊而言，看起來我們有一個非常好的季度。當我們在上個季度談到同樣的問題時，我們強調了一個事實，即不久前我們處於 13 年代中期，在 2019 年年中已經達到了 14%。我們在 14% 到 15% 之間，因此，我們強調這是我們在整個季度中取得的一些穩步進展。所以我們強調，上個季度，事情安排得非常非常好。所以我不一定認為它在下降。我認為我們的持續進步並不是完全線性的。

And perhaps maybe you can talk about the overall server pricing environment and maybe provide an overview of just demand trends that you're seeing in the current quarter and what your outlook is moving forward? I'd appreciate that. And then I had a follow-up.

也許您可以談談整個服務器定價環境，並提供您在當前季度看到的需求趨勢的概述以及您的前景如何？我會很感激。然後我進行了跟進。

Yes. I mean, as you know, the [market is be choppy] and macroeconomic (inaudible). However, our solution outperform others, especially with Cascade Lake. There is a product line that's available. So we expect our business will continue improving. Although, maybe not very fast, but [actually still] improving. And especially, and the new technology will be positive sign for our business.

是的。我的意思是，如您所知，[市場波動] 和宏觀經濟（聽不清）。然而，我們的解決方案勝過其他解決方案，尤其是對於 Cascade Lake。有一條可用的產品線。因此，我們預計我們的業務將繼續改善。雖然，也許不是很快，但 [實際上仍在] 改進。特別是，新技術將對我們的業務產生積極影響。

Yes. This is Kevin. I think if we put our lens a little bit shorter in time, as we looked at this quarter's guidance, certainly, we are observing and are part of the macro situation that many of our competitors have already voiced out. Usually, this quarter is seasonally down. And when the macro conditions are like this, sometimes, visibility is poor. And so, we have those 3 elements that were in our mind as we set guidance for this next quarter.

是的。這是凱文。我認為，如果我們在查看本季度的指導時將鏡頭放得更短一些，當然，我們正在觀察並且是我們許多競爭對手已經表達的宏觀形勢的一部分。通常，這個季度是季節性下降的。當宏觀條件是這樣的時候，有時能見度很差。因此，在我們為下個季度製定指導方針時，我們想到了這三個要素。

Got it. And then just last one, would love to get an update on where you are in your enterprise efforts? This is something you've mentioned in past as far as building out the enterprise efforts, services, software, maybe Fortune 500 accounts? Just would love an update there, maybe new customer account figures, anything there would be helpful.

知道了。然後是最後一個，想知道您在企業工作中的最新進展嗎？這是你過去提到的關於建立企業努力、服務、軟件，也許是財富 500 強賬戶的事情？只是希望那裡有更新，也許是新的客戶賬戶數據，任何有幫助的東西。

Yes, this is Perry. So our [GQK] portion of our business which includes that enterprise section, was approximately 20 -- a little bit better than 20% of the overall revenue. Within that, the enterprise section was actually up year-over-year by about 12%. So we are making steady progress in there with a number of customers that we have and the business that we're doing.

是的，這是佩里。因此，我們業務的 [GQK] 部分（包括企業部分）約為 20 - 略高於總收入的 20%。其中，企業板塊實際同比增長約 12%。因此，我們正在與我們擁有的許多客戶和我們正在開展的業務取得穩步進展。

We'll take our next question from Nehal Chokshi from Maxim Group.

我們將從 Maxim Group 的 Nehal Chokshi 那裡回答下一個問題。

And congrats on what I think is a fiscal year that represents records on cash from operations and non-GAAP net income. So you now have a $36 million net cash position, that's 29% of your market cap rate, and based I think on your trailing 12-month midpoint EPS that you provided for the past 12 months, it looks like you're trading at 5x [EBIT] net income. So are you guys willing to put that net cash to work in terms of buyback once you are able to, i.e., once the 10-Ks are indeed up to date?

祝賀我認為這是一個代表運營現金和非 GAAP 淨收入記錄的財政年度。所以你現在有 3600 萬美元的淨現金頭寸，這是你市值率的 29%，我認為根據你過去 12 個月提供的 12 個月中點每股收益，看起來你的交易價格是 5 倍[EBIT] 淨收入。那麼，一旦您能夠，即一旦 10-Ks 確實是最新的，你們是否願意將這些淨現金用於回購？

Yes. I think if you look at the cash that we have now, certainly, we have harvested some of that from the balance sheet. I think roughly, out of that $259 million working capital, harvesting roughly about $70 million of that. And we know that they're going to need that soon we continue to grow again. So I know this is a question that came up last time. We are just going to continue to plow forward in terms of understanding what our working capital needs are as growth returns. We feel pretty strongly about that.

是的。我認為，如果你看看我們現在擁有的現金，當然，我們已經從資產負債表中獲得了一些現金。我粗略地認為，從那 2.59 億美元的營運資金中，收穫了大約 7000 萬美元。我們知道他們很快就會需要我們繼續增長。所以我知道這是上次提出的問題。我們將繼續努力了解我們的營運資金需要什麼作為增長回報。我們對此有強烈的感覺。

Okay. And then -- that's great that you submitted the fiscal year '18 financials for finalization by your auditors. Can you confirm that the submitted financials are within the previously announced revenue and EPS ranges?

好的。然後——您提交了 18 財年的財務數據以供審計員定稿，這真是太好了。您能否確認提交的財務數據在之前公佈的收入和每股收益範圍內？

Yes. No, I'm not going to be able to confirm that. That's not something to address at this moment.

是的。不，我無法證實這一點。這不是現在要解決的問題。

(Operator Instructions) Our next question comes from Jon Lopez of Vertical Group.

（操作員說明）我們的下一個問題來自 Vertical Group 的 Jon Lopez。

I just had a couple of clarifications. First, did you guys give us -- or would you give us the number -- the server system number, please? Or the percentage of the business that was server systems?

我剛剛得到了一些澄清。首先，你們給了我們——或者你們能給我們號碼嗎——服務器系統號，好嗎？或者服務器系統佔業務的百分比？

Yes, we said in the script, in Charles' script, that 81% was services -- I'm sorry, servers.

是的，我們在腳本中說過，在 Charles 的腳本中，81% 是服務——對不起，服務器。

81%. Okay. 81%. I'm sorry, I missed that. My second question, we don't really have all the moving pieces I guess, but it looks like OpEx was kind of flattish sequentially. A, I'm wondering if can you confirm that? And then, B, just any thoughts on how that ought to trend? Obviously you guys know that the environment's not terrific right now, so I'm wondering if you guys are doing anything proactive for the balance of the year on the OpEx side.

81%。好的。81%。對不起，我錯過了。我的第二個問題，我猜我們並沒有真正掌握所有移動的部分，但看起來 OpEx 的順序有點平坦。A，我想知道你能否證實這一點？然後，B，關於它應該如何發展的任何想法？顯然你們知道現在的環境並不好，所以我想知道你們是否在 OpEx 方面為今年餘下的時間做任何積極主動的事情。

So it was relatively flattish. We talked about the 2 components that wiggled. I think, as we look forward, we will -- we have confidence in a long-term business (inaudible) to investment. I don't think that [we'll see] large increases in OpEx so far in line with what we think needs to be investment for the future.

所以比較平淡。我們談到了擺動的 2 個組件。我認為，正如我們所期待的，我們將 - 我們對長期業務（聽不清）投資充滿信心。我認為 [we'll see] 到目前為止，OpEx 的大幅增長並不符合我們認為未來需要投資的情況。

Got you. Okay. Helpful. I was -- this applies to one of the comments you guys made I apologize I can't remember who made it but some version of the Cascade Lake pacing is ahead of prior generations. I'm wondering if you could just flush that out a little bit. Maybe not entirely consistent with what we're picking up elsewhere. So I'm wondering if it's specific to your mix, your SKUs. So if you guys just could spend a second on that? And then, in doing so, I know you're not going to give guidance so I'm not asking for it, but as you think about trending towards the end of the calendar year, any thoughts on just seasonality and how applicable that may be given the environment and given what you're seeing with the Cascade Lake based projects?

明白了好的。有幫助。我是——這適用於你們發表的其中一條評論我很抱歉我不記得是誰提出的但是 Cascade Lake 步調的某些版本領先於前幾代人。我想知道你是否可以稍微沖洗一下。也許與我們在其他地方收集到的內容不完全一致。所以我想知道它是否特定於您的組合，您的 SKU。那麼，如果你們能花點時間在這上面？然後，在這樣做的過程中，我知道你不會提供指導，所以我不要求它，但是當你考慮到日曆年末的趨勢時，任何關於季節性的想法以及它可能的適用性給定環境並給定您在基於 Cascade Lake 的項目中看到的內容？

I mean as you know, we are technology DB company [so when there are] new technology, we had a chance to grow data. Given the macroeconomic [wherewithals, it will be] choppy in the coming months. So we try to be conservative. However, our Cascade Lake, I think (inaudible) very well, especially the new platforms including BigTwin, there have been continue growing and (inaudible) we start resource saving, they started to gain more and more attraction. And like I just mentioned, the recent results launched another 2 new data forms including (inaudible) and hyper (inaudible). So although it's in early stage, now we believe in (inaudible) and those new technology. We have (inaudible) growth (inaudible).

我的意思是如你所知，我們是技術數據庫公司 [所以當有] 新技術時，我們有機會增加數據。考慮到宏觀經濟 [wherewithals, it will] 在接下來的幾個月裡會起伏不定。所以我們盡量保守。然而，我們的 Cascade Lake，我認為（聽不清）非常好，尤其是包括 BigTwin 在內的新平台，一直在持續增長，並且（聽不清）我們開始節約資源，它們開始獲得越來越多的吸引力。就像我剛才提到的，最近的結果推出了另外 2 種新的數據形式，包括（聽不清）和超（聽不清）。因此，儘管它處於早期階段，但現在我們相信（聽不清）和那些新技術。我們有（聽不清）增長（聽不清）。

And if I could just follow up on that. You make a good point, which is, you guys have put a lot of SKUs out around Cascade Lake. It appears as though significantly more on a relative basis than your peers have. And so I'm wondering do you -- would you view Cascade Lake as perhaps an opportunity for maybe like disproportionate share gain with this cycle? Like i.e., are your competitors perhaps less focused on this, excuse me, on this iteration of -- or this portion of the Intel platform than you guys are?

如果我可以跟進那件事。你說得很好，也就是說，你們在 Cascade Lake 周圍放了很多 SKU。從相對的角度來看，它似乎比您的同行要多得多。所以我想知道你 - 你是否會將 Cascade Lake 視為一個機會，可能會在這個週期中獲得不成比例的份額收益？比如，你的競爭對手是否可能比你們更不關注這個，對不起，在這個迭代或英特爾平台的這一部分？

Yes. As you know, there are lots of technology [kind of just] available including I just mentioned EDSFF and Samsung [NA1], those product line continue to gain market share. Although they are pretty new technologies, but we see a big [credential] in near term, either late this year or early next year is where the big change would be. And as to Cascade Lake, we see us be a big room to grow.

是的。如您所知，有很多技術 [有點] 可用，包括我剛才提到的 EDSFF 和三星 [NA1]，這些產品線繼續獲得市場份額。儘管它們是相當新的技術，但我們在短期內看到了一個很大的 [credential]，無論是今年年底還是明年初，都會發生重大變化。至於 Cascade Lake，我們認為我們有很大的成長空間。

Our next question comes from Mehdi Hosseini of Susquehanna Financial Group.

我們的下一個問題來自 Susquehanna Financial Group 的 Mehdi Hosseini。

David Ryzhik for Mehdi again. Just back to gross margins, I guess, moving forward with lower component prices, should we expect that to serve as a tailwind to gross margins moving forward?

David Ryzhik 再次代表 Mehdi。回到毛利率，我想，隨著組件價格的降低，我們是否應該期望這會成為毛利率向前發展的順風？

Well, I think the reduction in component prices obviously have slowed down. So we've gone through a pretty steep ramp as we went through the last few quarters. We're not going to have that same kind of ramp on a go-forward basis. So I think in terms of it helping us as one of the components in terms of improving our gross margin, I don't see that, that's going to be a sustained uplift because those prices are -- the reduction in those prices is flattening out.

好吧，我認為組件價格的下降顯然已經放緩。因此，在過去幾個季度中，我們經歷了一個非常陡峭的斜坡。我們不會在前進的基礎上有同樣的斜坡。因此，我認為就它幫助我們作為提高毛利率的組成部分之一而言，我認為這不會持續上漲，因為這些價格 - 這些價格的下降正在趨於平緩.

Has that altered your decision-making around inventory management as far as memory? Are you strategically adding components given the flattening out?

就記憶而言，這是否改變了您關於庫存管理的決策？鑑於扁平化，您是否有策略地添加組件？

I would have to say, we have been [conservative] in this DRAM and then price drop period. So we will continue to monitor very closely.

我不得不說，我們在這個 DRAM 和價格下降時期一直 [保守]。因此，我們將繼續密切關注。

Great. And then just question on storage, would you be able to share the growth in NexGen storage versus traditional storage and overall storage?

偉大的。然後只是關於存儲的問題，您能否分享 NexGen 存儲相對於傳統存儲和整體存儲的增長？

Yes. Indeed, especially our new storage form factor NF1, is basically our EDSFF. We have [plenty] of a new platform, and we have (inaudible) of our endorsed [probably] in near future and midterm.

是的。事實上，尤其是我們新的存儲形式因素 NF1，基本上就是我們的 EDSFF。我們有 [很多] 新平台，並且在不久的將來和中期我們有（聽不清）我們認可的 [可能]。

And just lastly, Charles, would love to get your take on what you're seeing in hyper scale or Internet data center? I know that's part of the G 2000. But would love to hear what trends you're seeing amongst your customers there?

最後，Charles，想了解一下您在超大規模或 Internet 數據中心中看到的情況嗎？我知道那是 G 2000 的一部分。但是想知道您在那裡的客戶中看到了什麼趨勢嗎？

Not (inaudible), what we share with you, we continue to grow our economical scale in Taiwan and also in U.S.A. So when our scale continue to grow, we will be more competitive to beat those larger scale data centers, and we are prepared [enough].

不是（聽不清），我們與您分享的是，我們繼續擴大我們在台灣和美國的經濟規模。所以當我們的規模繼續增長時，我們將更有競爭力去擊敗那些更大規模的數據中心，我們已經做好了[足夠]的準備。

Our next question coming from Nehal Chokshi of Maxim Group.

我們的下一個問題來自 Maxim Group 的 Nehal Chokshi。

So I think you stated that you expected to have gained market share during the quarter. So what do you think the market [uptake there] because Intel data center group revenue was down 10% year-over-year about but their enterprise and government was down 31% year-over-year and you just said that you guys were up 12% year-over-year on the enterprise side. So just maybe give us a sense as far as what do you think the market did? And what portions of that Intel data center group metric or probably actually most relevant for gauging Super Micro performance?

所以我認為你說過你希望在本季度獲得市場份額。那麼你認為市場[那裡的吸收]是什麼，因為英特爾數據中心集團收入同比下降了 10%，但他們的企業和政府同比下降了 31%，你只是說你們都起來了企業端同比增長12%。那麼，就您認為市場做了什麼，也許可以讓我們了解一下？英特爾數據中心組的哪些部分衡量或可能實際上與衡量超微性能最相關？

Nehal, it's -- we don't always track out 1-to-1 with what their group does. Again, if you look at what they are tracking to and [want it to be] hyper scale, et cetera. And what that -- that's not a major part of our business although we have some customers there. The enterprise would be a separate sort of group there.

Nehal，它是——我們並不總是一對一地跟踪他們團隊的工作。同樣，如果您查看他們正在跟踪的目標並 [希望它] 超大規模，等等。那是什麼——儘管我們在那裡有一些客戶，但這不是我們業務的主要部分。那裡的企業將是一個獨立的群體。

But I would just say, overall, I mean, we sell economical scale continue to grow we will be more aggressive in both enterprise and super scale data center.

但我只想說，總的來說，我的意思是，我們出售經濟規模繼續增長，我們將在企業和超大規模數據中心方面更加積極。

It appears at this time that we have no further questions. I'd like to turn the call back over to Mr. Liang for any additional or closing comments.

現在看來我們沒有進一步的問題了。我想將電話轉回給梁先生，徵求任何其他意見或結束意見。

Thank you for joining us today, and have a great day.

感謝您今天加入我們，祝您有美好的一天。

Thank you, ladies and gentlemen. That does conclude the Super Micro fourth quarter fiscal 2019 business update conference call. We do appreciate your participation. You may disconnect at this time. Thank you.

謝謝你們，女士們，先生們。這確實結束了 Super Micro 2019 財年第四季度業務更新電話會議。我們非常感謝您的參與。此時您可以斷開連接。謝謝。