超微電腦 (SMCI) 2021 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Super Micro Computer, Inc. First Quarter Fiscal 2021 Financial Results Conference Call. A press release issued earlier today is available on Super Micro's website at www.supermicro.com. (Operator Instructions)

女士們、先生們，大家好，感謝你們的支持。歡迎參加 Super Micro Computer, Inc. 2021 財年第一季財務業績電話會議。今天稍早發布的新聞稿可在 Super Micro 的網站 www.supermicro.com 上查閱。 （操作員指令）

As a reminder, this call is being recorded, Tuesday, November 3, 2020. A replay of the call will be accessible via webcast at ir.supermicro.com. A replay of the webcast will be available online for 12 months following the call.

提醒一下，本次通話將於 2020 年 11 月 3 日星期二進行錄音。電話會議結束後的 12 個月內，網路直播的重播將在網路上提供。

An investor presentation and a transcript of management commentary related to Q4 results will also be posted at ir.supermicro.com.

與第四季度業績相關的投資者介紹和管理層評論記錄也將在ir.supermicro.com 上發布。

With us today are Charles Liang, Chairman and Chief Executive Officer; Kevin Bauer, Senior Vice President and Chief Financial Officer; and James Kisner, Vice President of Investor Relations.

今天與我們在一起的有董事長兼執行長梁見後 (Charles Liang)； Kevin Bauer，資深副總裁兼財務長；以及投資者關係副總裁 James Kisner。

I would now like to turn the conference over to Mr. Kisner. Mr. Kisner, please go ahead, sir.

現在我想將會議交給基斯納先生。基斯納先生，請繼續。

Thank you. Good afternoon, and thank you for attending Super Micro's call to discuss financial results for the first quarter of fiscal 2021, which ended September 30, 2020. 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.

謝謝。下午好，感謝您參加Super Micro 的電話會議，討論截至2020 年9 月30 日的2021 財年第一季度的財務業績。 ：正常交易結束時，可在公司網站查閱。

As a reminder, during today's call, the company will refer to a presentation that is available to participants in the Investor Relations section of the company's website under the Events & Presentations tab. We have also published management's scripted commentary on our website.

提醒一下，在今天的電話會議中，公司將參考一份演示文稿，該演示文稿可在公司網站的「活動和演示」標籤下的「投資者關係」部分中找到。我們也在我們的網站上發表了管理層的評論。

Please note that some of the information you'll hear during our discussion today will consist of forward-looking statements, including, without limitation, those regarding revenue, gross margin, operating expenses, other income and expenses, taxes, capital allocation and future business outlook, including the potential impact of COVID-19 on the company's business and results of operations.

請注意，今天討論中您將聽到的一些資訊將包含前瞻性陳述，包括但不限於有關收入、毛利率、營業費用、其他收入和費用、稅金、資本配置和未來業務的陳述。 COVID-19 對公司業務和經營業績的潛在影響。

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 2020 and our other SEC filings. All of these documents are available on the Investor Relations page of Super Micro's website. We assume no obligation to update any forward-looking statements.

有許多風險因素可能導致 Super Micro 的未來業績與我們的預期有重大差異。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 2020 年 10-K 文件以及我們向 SEC 提交的其他文件中了解有關這些風險的更多資訊。所有這些文件均可在 Super Micro 網站的投資者關係頁面上找到。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 business outlook. For an explanation of our non-GAAP financial measures, please refer to the accompanying presentation or to our press release published earlier today. In addition, a reconciliation of GAAP to non-GAAP results is contained in today's press release and in the supplemental information attached to today's presentation. At the end of today's prepared remarks, we will have a Q&A session for sell-side analysts to ask questions.

今天的演示大部分內容將涉及非公認會計準則財務表現和業務展望。有關我們的非公認會計準則財務指標的解釋，請參閱隨附的簡報或我們今天早些時候發布的新聞稿。此外，今天的新聞稿和今天的簡報所附的補充資料中還包含 GAAP 與非 GAAP 結果的對帳表。在今天的準備好的演講結束時，我們將安排一個問答環節，供賣方分析師提問。

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

現在我將電話轉給董事長兼執行長梁見後 (Charles Liang)。查爾斯？

Thank you, James, and good afternoon, everyone. Today, we have released our fiscal 2021 first quarter financial results. Now let's take a look and some highlights from the quarter.

謝謝你，詹姆斯，大家下午好。今天，我們發布了2021財年第一季的財務表現。現在讓我們來看看本季的一些亮點。

Our fiscal first quarter net sales totaled $762 million, down 5% year-over-year and 15% sequentially. Our fiscal Q1 non-GAAP earnings per share was $0.55 compared to $0.68 in both the same quarter of last year and in fiscal Q4 of 2020.

我們第一財季的淨銷售額總計 7.62 億美元，年減 5%，季減 15%。我們第一財季的非 GAAP 每股收益為 0.55 美元，而去年同期和 2020 財年第四季均為 0.68 美元。

As we expect, Q1 has been our seasonally low quarter after a traditionally strong quarter in June. This year, despite the continuing challenges from COVID-19, we were pleased to deliver revenue and earnings above the midpoints of our guidance ranges.

正如我們預期的那樣，在經歷了傳統的 6 月強勁增長之後，第一季成為了我們的季節性低迷季度。今年，儘管新冠疫情帶來的挑戰持續存在，但我們仍很高興能實現收入和收益高於預期範圍的中點。

We have been efficiently adjusting to the new normal as a business deemed essential by the state of California, although there are still lots of areas can be and will be further improved regarding COVID-19 impact. At the same time, we have been aggressively growing our operations, R&D and sales functions in Taiwan, where the COVID-19 impact is much less than that in our U.S. and EMEA headquarters.

作為加州認定的必不可少的企業，我們一直在有效地適應新常態，儘管就 COVID-19 的影響而言，仍有許多領域可以而且將會進一步改進。同時，我們一直在積極發展我們在台灣的營運、研發和銷售職能，台灣受新冠肺炎疫情的影響遠小於我們美國和歐洲、中東和非洲地區總部。

During the September quarter, we continued to serve our current customers while enhancing our Taiwan headquarters capacity and capability in production, operation and sales force in order to support our global growth strategy. To sum up, we now have a much bigger and lower cost campus in Taiwan with better productivity for revenue and profitability growth.

9月季度，我們持續為現有客戶提供服務，同時增強台灣總部的生產、營運和銷售能力，以支持我們的全球成長策略。總而言之，我們現在在台灣擁有一個更大、成本更低、生產力更高的園區，從而實現了收入和利潤的成長。

This is just the beginning of our turnover effort after recent challenges that I will discuss later. I believe, as our Taiwan campus starts to reach higher economy of scale combined with our cost reduction efforts, revenue and profitability growth will be getting much stronger in the coming quarters and years. I have confidence in capitalization on many new market opportunities in our approximately $100 billion TAM, especially in APAC, EMEA and the U.S. East Coast. We have been pretty successful at achieving a greater market share in the U.S. West Coast, and we aim to duplicate this success in other geographic territories.

這只是我們在面臨最近挑戰之後所進行的營業額努力的開始，我稍後會討論這些挑戰。我相信，隨著我們台灣園區開始達到更高的規模經濟，再加上我們的成本削減努力，未來幾季和幾年的營收和獲利成長將會更加強勁。我有信心在我們約 1000 億美元的 TAM 中抓住許多新的市場機會，特別是在亞太地區、歐洲、中東和非洲地區以及美國東海岸。我們在美國西海岸取得了更大的市場份額，並計劃在其他地區複製這一成功。

Let me spend a minute to review our traditional business and the 3 new growth drivers that I stated in the past 2 quarter end conference calls. First, our organic enterprise and channel business. Second, our new large datacenter, public cloud and OEM business. Third, our new 5G, Edge and Telco businesses. And fourth, our software and global Telco business -- sorry, our software and global service business.

讓我花一點時間來回顧我們的傳統業務和我在過去兩個季度末電話會議上提出的三個新的成長動力。首先，我們的有機企業和通路業務。第二，我們的新大型資料中心、公有雲和OEM業務。第三，我們的新5G、Edge和Telco業務。第四，我們的軟體和全球電信業務—抱歉，是我們的軟體和全球服務業務。

We have made good progress in each of the 4 growth drivers. We have added more new enterprise customer to our accounts and gained a couple of top scale cloud companies. We also have won a couple of top Telco partners in each of the EMEA, Asia and U.S.A. territories. Moreover, we see our software and service business continues to gain more adoptions worldwide. With the business foundation we have built and the customer pipelines we have nurtured, continued progress is expected in each of these growth areas going forward. Especially in the new large cloud and OEM and the 5G and Telco markets, I believe the growth will be a big extra revenue to us.

我們在四大成長動力上都取得了良好進展。我們的帳戶增加了更多新的企業客戶，並獲得了幾家頂級雲端運算公司。我們也在歐洲、中東和非洲地區、亞洲和美國地區贏得了幾個頂級電信合作夥伴。此外，我們看到我們的軟體和服務業務在全球範圍內繼續獲得越來越多的採用。憑藉我們已經建立的業務基礎和培育的客戶管道，預計未來每個成長領域都將繼續取得進展。特別是在新的大型雲端和OEM以及5G和電信市場，我相信成長將為我們帶來巨大的額外收入。

Before moving on to technology and products, I want to take a moment to recall and share the causes of our business slowdown and disruption over the past 3 years. First, our 10-K delay in June 2017 followed by our delisting was a significant distraction to management and employees for over 3 years. Although, all the concerns and issues were resolved a few months ago, this disruption had a lasting effect on our business and employee morale. However, we are recovering quickly now.

在談論技術和產品之前，我想花點時間回顧並分享過去 3 年我們業務放緩和中斷的原因。首先，我們在 2017 年 6 月的 10-K 延遲以及隨後的退市，對管理層和員工造成了超過 3 年的嚴重干擾。雖然幾個月前所有的擔憂和問題都得到了解決，但這次中斷對我們的業務和員工士氣產生了持久的影響。不過，我們現在正在迅速恢復。

Unfortunately, just as we emerged from our stock delisting and resumed growth in December 2019, COVID-19 came to U.S. shores and has slowed down enterprise and channel spending badly, and that was our traditional focus. Our sales, operations and production performance has been impacted since the end of this March.

不幸的是，就在我們於 2019 年 12 月從股票退市中恢復成長時，COVID-19 襲擊了美國海岸，並嚴重減緩了企業和通路支出，而這曾是我們的傳統關注點。自今年三月底以來，我們的銷售、營運和生產業績都受到了影響。

Regardless of these challenges and disruptions, I want to share with you that Supermicro is still very strong. Our strong foundation allows us to find ways to overcome these challenges. We stand alone as the only U.S. server hardware solutions company, with the longest record of faster and uninterrupted growth since inception.

無論面臨怎樣的挑戰和乾擾，我想告訴大家的是，超微仍然非常強大。我們堅實的基礎使我們能夠找到克服這些挑戰的方法。我們是唯一一家美國伺服器硬體解決方案公司，自成立以來一直保持著最長的快速、不間斷成長記錄。

In the 10 years between our IPO in calendar 2007 and 2017, we grew at a 20% compounded annual growth rate, well above that of the industry at about 3% compound annual growth rate over the same time period. Our investors should keep these facts in mind. We will prove that we are able to recreate the same growth trajectory or even better very soon.

從 2007 年首次公開募股到 2017 年的 10 年間，我們的年複合成長率達到 20%，遠高於同期產業約 3% 的年複合成長率。我們的投資人應該牢記這些事實。我們很快就會證明，我們能夠重塑同樣甚至更好的成長軌跡。

Moving on to technology and products. Our unique Building Block Solution R&D organization is strong and smart at work to expand our product lines with extensive growth in our NVIDIA, AMD and Intel portfolios. Our broadest leading AI platforms and the coming soon new Intel Ice Lake product lines will prove that Supermicro, again, will be the true hardware industry leader.

繼續討論技術和產品。我們獨特的構建塊解決方案研發機構實力強大，工作聰明，能夠擴展我們的產品線，使 NVIDIA、AMD 和 Intel 產品組合實現廣泛成長。我們最廣泛的領先 AI 平台和即將推出的全新英特爾 Ice Lake 產品線將再次證明 Supermicro 將成為真正的硬體產業領導者。

Some technology highlights in the quarter include the followings. First, we introduced end-to-end PCI-E Gen4 based 1U, 2U and 4U AI systems that deliver 6x AI training and 7x inference performance improvement over previous generation. These AI systems are available with either the latest AMD EPYC processor or the upcoming Intel Ice Lake processors.

本季度的一些技術亮點包括：首先，我們推出了基於端對端 PCI-E Gen4 的 1U、2U 和 4U AI 系統，與上一代相比，其 AI 訓練性能提高了 6 倍，推理性能提高了 7 倍。 這些 AI 系統可搭載最新的 AMD EPYC 處理器或即將推出的 Intel Ice Lake 處理器。

Second, most importantly, we believe our upcoming X12 IceLake product line is absolutely going to be the strongest product line in our history. It will be ready to ship as soon as Intel's new CPU is available. True to our application-optimization product strategy, our X12 product line will provide exactly the best hardware performance for 5G, AI and Telco as well as mega Data Center applications.

其次，最重要的是，我們相信即將推出的 X12 IceLake 產品線絕對會成為我們史上最強大的產品線。一旦英特爾推出新的 CPU，它便可出貨。秉承我們應用最佳化的產品策略，我們的 X12 產品線將為 5G、AI 和電信以及大型資料中心應用提供最佳的硬體效能。

Third, we were also first-to-market with a 1U NEBS Level 3 certified NVIDIA V100 GPU accelerated server, a key enabler for the transition to 5G. And we also delivered the world's most energy efficient Supercomputer. Recently, by cooperating with Preferred Networks, our system achieved #1 in the Green500 with a record-breaking 21.11 gigaflops-per-Watt, which is 15% higher than the previous worldwide record. Given our leadership in Green IT, this is reflective of the deeper mission of our company: to help preserve our only planet for future generations with products that offer unbeaten energy efficiency.

第三，我們也率先在市場上推出了經過 NEBS 3 級認證的 1U NVIDIA V100 GPU 加速伺服器，這是向 5G 過渡的關鍵推動因素。我們也交付了世界上最節能的超級電腦。最近，透過與 Preferred Networks 合作，我們的系統在 Green500 中以破紀錄的 21.11 千兆次浮點運算取得了第一名，比之前的世界紀錄高出 15%。鑑於我們在綠色 IT 領域的領導地位，這反映了我們公司更深層的使命：透過提供無與倫比能源效率的產品，幫助為子孫後代保護我們唯一的地球。

Other than the 4 business growth drivers, our big production and operation capacity program in Taiwan, and our new strong product pipelines, the company is also investing in a business automation branch, which is our B2B and B2C online business transaction system. We started designing this system 5 years ago and have recently put extra efforts to finish the Phase I milestone. Now we are able to help our sales and our customers to easily select the product configurations and order quickly online.

除了四大業務成長動力、我們在台灣的大型生產和營運能力計劃以及我們新的強大產品線之外，該公司還投資了業務自動化分支，即我們的 B2B 和 B2C 線上業務交易系統。我們五年前就開始設計這個系統，最近我們付出了額外的努力來完成第一階段的里程碑。現在我們能夠幫助我們的銷售人員和客戶輕鬆選擇產品配置並在線快速訂購。

This Phase 1 will be open to sales this November. After that, we aim to open it up to some of our customers in a few weeks. While we continue to fine-tune Phase I features and configuration optimization, Phase 2 has already been kicked off with a command center-based structure to further speed up and optimize sales performance and customer satisfaction. This innovative sales and services software program will dramatically improve our business efficiency, scale and quality.

第一階段將於今年 11 月開始銷售。此後，我們計劃在幾週內向部分客戶開放功能。在我們繼續微調第一階段的功能和配置優化的同時，第二階段已經啟動，採用基於指揮中心的結構，以進一步加快和優化銷售業績和客戶滿意度。這項創新的銷售和服務軟體程式將大大提高我們的業務效率、規模和品質。

In summary, we are back, and we will soon be much stronger than ever before. We believe that the big challenges in the past 3 years that badly hurt Supermicro are totally behind us now. As we continue to build a much stronger foundation globally, including the much larger new campus in Taiwan, we will leverage this investment to efficiently reaccelerate our business growth and profitability in the coming quarters and years.

總而言之，我們回來了，而且我們很快就會比以前更強大。我們相信，過去三年為超微帶來巨大打擊的巨大挑戰現在已經完全過去了。隨著我們繼續在全球範圍內建立更強大的基礎，包括在台灣建立更大的新園區，我們將利用這項投資在未來幾季和幾年內有效地加速我們的業務成長和獲利能力。

I appreciate the patience that investors and our employee have shown to our company during the difficult time, and we aim to reward your support with our fast growth in the near future and long-term success. And I believe that we will become one of the top IT infrastructure provider very soon.

我感謝投資者和員工在困難時期對公司表現出的耐心，我們希望透過近期的快速成長和長期成功來回報你們的支持。我相信我們很快就會成為頂級IT基礎設施提供者之一。

At the coming -- at the upcoming investor in May and Analyst Day, we will share more details about the scale, scope and schedule of the new Supermicro progress that we have been developing to grow into a top player.

在即將到來的 5 月投資者和分析師日上，我們將分享更多有關超微新進展的規模、範圍和時間表的細節，我們一直在努力發展成為頂級參與者。

The key topics will include: a, our 4 business drivers; b, our unique technology and new product lines for AI, 5G, Telco and Large Cloud and our organic business; c, our new campus in Taiwan to lower our business cost; d, our software and service business status; and e, our B2B and B2C business automation program. Welcome to join us at that time.

關鍵主題包括：a、我們的 4 個業務驅動因素； b、我們針對 AI、5G、電信和大型雲端的獨特技術和新產品線以及我們的有機業務； c、我們在台灣設立的新園區，以降低我們的經營成本； d、我們的軟體及服務業務狀況；以及我們的 B2B 和 B2C 業務自動化程序。歡迎屆時加入我們。

I will now pass the call to Kevin Bauer, our Chief Financial Officer, to provide additional details on the quarter.

我現在將電話轉給我們的財務長凱文鮑爾 (Kevin Bauer)，以提供有關本季度的更多詳細資訊。

Thank you, Charles. Our fiscal first quarter revenue totaled $762 million. This reflects a 5% year-on-year decrease from the same quarter of last year and a 15% decline from the fourth quarter of fiscal year 2020. Systems comprised 81% of total revenue and volumes of systems and nodes shipped were down sequentially and year-over-year. System ASPs increased quarter-on-quarter and year-over-year.

謝謝你，查爾斯。我們第一財季的營收總計 7.62 億美元。與去年同期相比下降了 5%，與 2020 財年第四季相比下降了 15%。系統平均售價較上月及年比均有所成長。

Turning to geographic performance. On a year-over-year basis, the U.S. increased 6%, EMEA declined 12% and Asia declined 22%. On a sequential basis, U.S. sales declined 8% quarter-on-quarter, EMEA declined 32% and Asia declined 22% sequentially.

轉向地理表現。與去年同期相比，美國成長了 6%，歐洲、中東和非洲地區下降了 12%，亞洲下降了 22%。以季度計算，美國銷售額較上季下降 8%，歐洲、中東和非洲地區銷售額較上季下降 32%，亞洲銷售額較上季下降 22%。

From a customer point of view, we saw pauses at OEM, cloud service provider and internet commerce customers following strong demand in the June quarter, coupled with the normal down cycle of demand from large enterprise customers. This was offset by first time business at the new high-profile customers that Charles referred to earlier.

從客戶角度來看，在經歷了 6 月季度的強勁需求之後，我們發現 OEM、雲端服務供應商和網路商務客戶的需求出現暫停，同時大型企業客戶的需求也進入了正常的下滑週期。但這一增幅被查爾斯先前提到的新的高端客戶的首次業務所抵消。

From this point forward, unless otherwise noted, I will be discussing financial metrics on a non-GAAP basis.

從現在開始，除非另有說明，我將以非 GAAP 為基礎討論財務指標。

Working down the P&L., Q1 gross margin was 17.1%, up 70 basis points year-on-year and 310 basis points quarter-on-quarter. Recall, on our August earnings call, we stated that we expected gross margin to improve by 75 to 125 basis points on a sequential basis, chiefly due to a reduction in what were highly-elevated commodity and freight costs.

從損益表來看，第一季毛利率為 17.1%，較去年同期成長 70 個基點，較上季成長 310 個基點。回想一下，在我們八月的財報電話會議上，我們表示，預計毛利率將環比提高 75 至 125 個基點，這主要是由於高昂的商品和運費成本的降低。

As anticipated, we did see improvement from these factors. But also, we accrued for a recovery of costs paid in prior periods that benefited this quarter by roughly 130 basis points.

正如預期的那樣，我們確實看到了這些因素的改善。但同時，我們也提列了前期支付的成本回收，這使本季受益約 130 個基點。

Turning to operating expenses. Q1 OpEx on a GAAP basis decreased 13% quarter-on-quarter to $99 million. Recall, last quarter's GAAP operating expenses included $16.2 million in one-time incentive awards to our employees. On a non-GAAP basis, operating expenses increased 4% quarter-on-quarter and 10% year-on-year to $95 million. The sequential increase in non-GAAP OpEx was primarily due to the fact that Q4 operating expenses benefited from a bad debt recovery of $4.8 million.

談到營運費用。根據 GAAP 計算，第一季營運支出季減 13% 至 9,900 萬美元。回想一下，上個季度的 GAAP 營運費用包括向我們的員工發放的 1,620 萬美元的一次性獎勵。以非公認會計準則計算，營業費用較上季成長 4%，年增 10%，至 9,500 萬美元。非公認會計準則營運支出的環比增長主要由於第四季度營運費用受益於 480 萬美元的壞帳回收。

Other income and expense, including interest expense, was a $1.5 million loss as compared to a $1.3 million loss last quarter. This quarter, our tax expense was $3.7 million on a GAAP basis and $4.8 million on a non-GAAP basis. In both cases, this quarter benefited from larger tax deductions related to stock-based compensation. Our non-GAAP tax rate was 14.1% for the quarter. Going forward, we expect our tax rate to approximate 16%, slightly below our prior expectation of an 18% rate.

其他收入和支出（包括利息支出）虧損 150 萬美元，而上一季虧損 130 萬美元。本季度，我們的稅費以 GAAP 計算為 370 萬美元，以非 GAAP 計算為 480 萬美元。在這兩種情況下，本季均受益於與股票薪酬相關的更大額度的稅收減免。本季我們的非公認會計準則稅率為 14.1%。展望未來，我們預期稅率約為 16%，略低於先前預期的 18%。

Lastly, our joint venture contributed income of $1.3 million this quarter as compared to income of $3.5 million last quarter and income of $1 million in the same quarter a year ago.

最後，我們的合資企業本季貢獻了 130 萬美元的收入，而上季的收入為 350 萬美元，去年同期的收入為 100 萬美元。

Q1 non-GAAP diluted earnings per share totaled $0.55 as compared to $0.68 in both the same quarter of last year and in the fourth quarter of fiscal 2020. Cash flow from operations totaled $120 million, driven from an improvement from cash flow from operations of negative $96 million in the June quarter, driven largely by changes in working capital. CapEx totaled $12 million, resulting in free cash flow of $109 million.

第一季非GAAP 攤薄每股收益總計0.55 美元，而去年同期及2020 財年第四季均為0.68 美元。改善為正成長。資本支出總計 1,200 萬美元，產生 1.09 億美元的自由現金流。

Our closing balance sheet cash position, which excludes restricted cash, was $300 million, while bank debt was $36 million, resulting in a net cash balance of $264 million. And I'll remind everyone that we completed our previously announced $30 million share repurchase program before the quarter end, wherein we purchased 1.14 million shares at a weighted average price of $26.24.

我們的期末資產負債表現金狀況（不包括受限現金）為 3 億美元，而銀行債務為 3,600 萬美元，因此淨現金餘額為 2.64 億美元。我要提醒大家，我們在季度末之前完成了先前宣布的 3000 萬美元股票回購計劃，其中我們以 26.24 美元的加權平均價格購買了 114 萬股。

In our earnings release today, we concurrently announced that our Board of Directors has authorized the company to repurchase up to another $50 million of its common stock in a new share repurchase program. The program is effective until October 31, 2021 or until the authorized funds are exhausted under a 10b5-1 plan, whichever occurs first. We are currently taking a tactical and opportunistic approach to share repurchase as we fine-tune our longer-term capital allocation strategy.

在我們今天的收益報告中，我們同時宣布董事會已授權公司在新的股票回購計畫中再回購最多 5,000 萬美元的普通股。該計劃有效期至 2021 年 10 月 31 日或 10b5-1 計劃下授權資金用盡為止（以先到者為準）。我們目前正在採取戰術性和機會主義的方式進行股票回購，同時微調我們的長期資本配置策略。

Turning to working capital metrics. Our Q1 cash conversion cycle was 170 days, up from 87 days last quarter and outside of our target range of 85 to 90 days. While the absolute level of our inventory declined, days of inventory at 118 days remains elevated relative to history, given the lower sales level quarter-on-quarter. And Days Sales Outstanding was 44 days, while Days Payable Outstanding totaled 55 days.

轉向營運資本指標。我們第一季的現金轉換週期為 170 天，高於上一季的 87 天，並且超出了我們 85 至 90 天的目標範圍。雖然我們的庫存絕對水準下降，但考慮到季度環比銷售水準較低，118天的庫存天數相對於歷史水準仍然較高。應收帳款週轉天數為44天，應付帳款週轉天數總計55天。

Now turning to the outlook for our business. The company expects net sales for the quarter ending December 31, 2020, in the range of $780 million to $880 million. We expect gross margins to decline approximately 160 to 200 basis points sequentially due to the cost recovery discrete event mentioned earlier and higher overhead costs driven by an expected increase in freight.

現在來談談我們的業務前景。該公司預計截至 2020 年 12 月 31 日的季度淨銷售額將在 7.8 億美元至 8.8 億美元之間。我們預計毛利率將環比下降約 160 至 200 個基點，原因是前面提到的成本回收離散事件和預計運費上漲導致的管理費用增加。

We expect non-GAAP operating expense level to be flattish quarter-on-quarter. While we're selectively investing in R&D, this was offset by lower audit costs and actions we took very late in the quarter to selectively reduce headcount. We anticipate the GAAP and non-GAAP tax rate to be 16% going forward. We fully expect GAAP -- diluted GAAP EPS to be in the range of $0.25 to $0.47 to fully diluted non-GAAP EPS to be in the range of $0.35 to $0.58.

我們預計非公認會計準則下的營業費用水準將與上一季持平。雖然我們有選擇地投資於研發，但這被較低的審計成本和我們在本季末採取的選擇性裁員行動所抵銷。我們預計未來 GAAP 和非 GAAP 稅率將為 16%。我們完全預期 GAAP 稀釋每股收益將在 0.25 美元至 0.47 美元之間，而完全稀釋非 GAAP 每股收益將在 0.35 美元至 0.58 美元之間。

We now expect our CapEx for fiscal '21 to be in the range of $55 million to $60 million, inclusive of the acceleration of the Taiwan building project mentioned earlier by Charles.

我們現在預計 21 財年的資本支出將在 5,500 萬美元至 6,000 萬美元之間，其中包括查爾斯之前提到的台灣建築項目的加速。

In the meantime, we remain focused on guiding the company through the volatility presented by this resurgence in COVID-19 and ardently rebuild our business momentum as described by Charles.

同時，我們仍將專注於引導公司渡過此次新冠肺炎疫情復發帶來的動盪，並熱情地重建我們的業務勢頭，正如查爾斯所描述的那樣。

With that, I'll turn the call back to James for Q&A.

說完這些，我將把電話轉回給詹姆斯進行問答。

Thank you, Kevin. Operator, we are ready to take questions.

謝謝你，凱文。接線員，我們準備好回答問題了。

(Operator Instructions)

（操作員指令）

Your first question comes from the line of Jon Tanwanteng with CJS Securities.

您的第一個問題來自 CJS Securities 的 Jon Tanwanteng。

My first one is, I think you guys mentioned Internet and cloud as a source of strength in your Q1 results. Can you talk a little bit more about that end market, the margin profile and the revenue impact of these customers and how they factor into your guidance for the next quarter?

我的第一個問題是，我認為你們提到網路和雲端運算是第一季業績的強勁來源。您能否進一步談談終端市場、這些客戶的利潤狀況和收入影響，以及它們對您下一季的業績指引有何影響？

We're having trouble hearing the question. I don't know if it's -- whose line it is. We can barely hear, Jon. Jon, can you speak up a little bit? Please, repeat the question.

我們聽不清楚這個問題。我不知道這是誰的台詞。我們幾乎聽不見，喬恩。喬恩，你能大聲說一點嗎？請重複一下問題。

Yes, is this better?

是啊，這樣好一點嗎？

Yes, much better.

是的，好多了。

Here we go.

開始了。

Okay. Great. I was saying, you mentioned cloud and Internet as a source of strength in the quarter. I was just wondering if you could talk about the margin profile of those customers and how they factor into your guidance going forward.

好的。偉大的。我說的是，您提到雲端運算和網路是本季的力量來源。我只是想知道您是否可以談談這些客戶的利潤狀況以及他們如何影響您未來的指導。

Sure. So this was kind of our first taste of some of these customers. I would say that fortunately, as opposed to what some might think our margin profile was not appreciably different from the margin profile of our other customers. So we expect and hope that, that will hold true on a go-forward basis as well.

當然。這是我們首次對這些顧客進行體驗。我想說的是，幸運的是，與某些人的想法相反，我們的利潤狀況與其他客戶的利潤狀況並沒有明顯的差異。因此，我們期待並希望這在未來也能夠成立。

Got it. And then can you talk about maybe the -- how you see market demand developing over the next 2 quarters, with the relative puts and takes, whether it be COVID, election concerns and new form launches and new product launches that you're doing internally?

知道了。然後，您能否談談——您如何看待未來兩個季度的市場需求發展，以及相關的利弊，無論是新冠疫情、選舉擔憂，還是您內部正在進行的新形式發布和新產品發布？

Yes. It's hard to predict. But as you may know, right, enterprise and channel business may continue to decline gently. And at the same time, the cloud, social networking, communication, video streaming demand still keep strong. And that's why we have created some big customers in large cloud and video streaming territory. So we start getting some demand from that territory. And that's why our Taiwan operation manufacture in Taiwan, especially for lower cost, will help us a lot.

是的。這很難預測。但正如你們可能知道的，企業和通路業務可能會繼續緩慢下滑。同時，雲端、社群網路、通訊、視訊串流的需求依然保持強勁。這就是我們在大型雲端和視訊串流領域創造一些大客戶的原因。因此我們開始從該地區獲得一些需求。這就是為什麼我們在台灣進行生產，特別是為了降低成本，將對我們有很大幫助。

Great. That's a good lead off into my next question I was going to ask, about the Taiwan acceleration and how it better positions you both strategically. And maybe if you go into it, how much can you quantify the expected benefit from moving there over maybe the nearer term?

偉大的。這很好地引出了我要問的下一個問題，關於台灣的加速發展，以及它如何在戰略上更好地定位你們。也許如果您深入研究一下，您能量化近期遷往那裡預期能帶來的多少收益？

Yes. Let me start, and Kevin may follow. So I mean, it's investment for, I wouldn't say, short term, midterm and long term. So this year is in Taiwan, cost is much lower than in our USA operation. Basically, it's about 35% to 50%. So for mature products benefited, we should greatly leverage the possibility the capacity in Taiwan.

是的。讓我先開始，凱文可能會跟著開始。所以我的意思是，這是一種投資，我不會說短期、中期還是長期。所以今年是在台灣，成本比我們在美國的業務低很多。基本上是35%到50%左右。因此對於成熟的產品來說，我們應該要大大利用台灣的產能可能性。

And with COVID-19 hit U.S.A. much worse than in Taiwan. In Taiwan, indeed, almost no impact. And that's why we quickly leverage our Taiwan operation advantage. And I believe it will be good for our short-term and gradually advantage have become much clearer and much more significantly in mid-term and long term.

美國受疫情打擊比台灣嚴重許多。在台灣，確實幾乎沒有影響。這就是我們迅速利用台灣營運優勢的原因。我相信這對我們的短期優勢有好處，並且從中期和長期來看，我們的優勢將變得更加明顯和顯著。

Your next question comes from the line of Nehal Chokshi with Northland Capital Markets.

您的下一個問題來自 Northland Capital Markets 的 Nehal Chokshi。

Congratulations on great results all around, especially the strong free cash flow and executing on the share buyback. You guys mentioned that you noticed areas of recent improvement that gives you confidence that year-over-year growth is bottoming here. Can you discuss exactly which areas are you seeing that recent improvement in? And from what point in time are you referencing as well where that demand profile has improved?

恭喜您取得的出色業績，尤其是強勁的自由現金流和股票回購的執行。你們提到，你們注意到最近有所改善，這讓你們相信同比增長已觸底。您能否具體討論一下最近哪些方面出現了改善？您認為從什麼時候開始需求狀況有所改善？

So I think we just navigated a period that was challenging. We kind of gave some guidance in terms of how we think that it is gently going to improve in the December quarter here based upon visibility that we have. I think also, when we talked about some of those new customers, some of the lead times for their materials are longer in length such that we get a little bit better in visibility as to their plans for the March quarter.

所以我認為我們剛剛度過了一段充滿挑戰的時期。基於我們掌握的可見性，我們就 12 月季度的情況將會如何緩慢改善給出了一些指導。我還認為，當我們談到一些新客戶時，他們的一些材料的交付週期更長，這樣我們就能更好地了解他們三月季度的計劃。

And so therefore, I think at some of those speeds of information that make us believe that as we continue to accelerate quarter-by-quarter, that there is some tangible evidence of people's plans, not perfect visibility, but there's some that's out there to be able to latch on to. I don't know if you have anything else in addition to that, Charles.

因此，我認為，隨著資訊速度的不斷加快，我們相信，隨著我們繼續逐季加速，人們的計劃會有一些切實的證據，雖然不是完美的可見性，但還是有一些證據可以證明能夠抓住。查爾斯，我不知道您除此之外還有什麼其他事情。

Yes. Likewise, I just mentioned, I mean, in last quarter, I mean, especially after the impact of COVID-19, we started to focus on large accounts, high-profile, high-volume accounts for a large cloud, a large Data Center and video steaming customer, for example, 5G and Telco.

是的。同樣，我剛才提到，在上個季度，尤其是在受到新冠肺炎疫情的影響之後，我們開始關注大型帳戶，大型雲端、大型資料中心的高知名度、高容量帳戶。和電信公司。

And we started to gain some very good partnerships, and we started to ship some. And -- however, really high volumes, it takes some time to ramp up. So like Kevin say, I mean, at December quarter, we will see some help, March quarter and next year June quarter, I believe, we will see a much bigger help.

我們開始獲得一些非常好的合作夥伴關係，並且開始交付一些產品。然而，由於產量非常高，需要一些時間來提升。所以就像凱文所說的那樣，我的意思是，在 12 月季度，我們會看到一些幫助，而 3 月季度和明年 6 月季度，我相信，我們會看到更大的幫助。

Yes. I thought of one thing that could help the investment community understand that a little bit better is that some of these new customers are actually ordering rack scale products from us that with that longer lead time, give us some visibility.

是的。我想到一件可以幫助投資界更好地理解的事情，那就是其中一些新客戶實際上正在向我們訂購機架式產品，而更長的交貨時間可以為我們帶來一些可見性。

I see. Okay. And second question I have is that a nice slide here on your key vertical markets and growth drivers. I think this is a bit of an evolution of the Supermicro 3.0 vision that you guys had. Previously talked about. And within that Supermicro 3.0 vision, implied in that was a potential for margin expansion. In this new way of presenting it, does that opportunity still present itself? And can you talk a little bit about how that might actually look in terms of a long-term margin profile?

我懂了。好的。我的第二個問題是，這張投影片很好地介紹了您的關鍵垂直市場和成長動力。我認為這在某種程度上是你們 Supermicro 3.0 願景的演變。前面講過。在 Supermicro 3.0 願景中，隱含著利潤擴大的潛力。透過這種新的呈現方式，這種機會仍然存在嗎？您能否談談這對長期利潤率的影響實際上會是怎麼樣的？

Yes, very good question. I mean, we mentioned about Supermicro 3.0 about 3 years ago. Unfortunately, a 10-K delay that delayed the outcome of our project.

是的，非常好的問題。我的意思是，我們大約 3 年前提到過 Supermicro 3.0。不幸的是，10-K 的延遲推遲了我們專案的成果。

The good thing is now it's all over, right? So we start to execute our Supermicro 3.0 now strongly, for example, the 5G, Edge and Telco business, software and global service, so that has been helping our business, and will become a much significant help quarter-over-quarter. As for our large Data Center and cloud, even private cloud businesses has been growing, and we will continue to invest in that area. So it should be a very significant business driver for us in short-term income and even long term, especially long term, I would ever say.

好消息是現在一切都結束了，對吧？因此，我們現在開始大力執行我們的 Supermicro 3.0，例如 5G、Edge 和 Telco 業務、軟體和全球服務，這一直在幫助我們的業務，並將對每個季度產生更大的幫助。至於我們的大型資料中心和雲端，甚至私有雲業務一直在成長，我們將繼續在該領域進行投資。所以我想說，它應該成為我們短期收入甚至長期收入的一個非常重要的業務驅動力。

Your next question comes from the line of Aaron Rakers with Wells Fargo.

您的下一個問題來自富國銀行的 Aaron Rakers。

Sorry, James, I was on mute. I just wanted to ask a question about server cycle. You referenced in your prepared remarks, Intel's Ice Lake. You also have AMD's Milan processors. It sounds like you guys continue to see overall ASP increases in your system sales.

抱歉，詹姆斯，我靜音了。我只是想問一個關於伺服器週期的問題。您在準備好的發言中提到了英特爾的 Ice Lake。您還擁有 AMD 的 Milan 處理器。聽起來你們的系統銷售整體 ASP 持續成長。

How are you thinking about like Intel with 8 channels of memory from 6? How do you think about the ASP trend relative to unit growth as you think about the setup in the calendar '21?

您如何看待英特爾將 6 個記憶體通道升級為 8 個記憶體通道？當您考慮 21 年日曆的設定時，您如何看待相對於單位成長的 ASP 趨勢？

Yes. More and more customers now really appreciate our total solution, not just Pericom by the CPU memory hard drive and total solution, including management software, including some even applications software. So including a special memory, right, that is why we mentioned kind of SSD, NVMe.

是的。現在越來越多的客戶真正欣賞我們的整體解決方案，不只是Pericom由CPU記憶體硬碟和整體解決方案組成，還包括管理軟體，甚至包括一些應用軟體。因此包括特殊的內存，對吧，這就是我們提到 SSD、NVMe 的原因。

And total solution has been our long-term goal and complete the Rack solution. And very soon, we will share with you even more about our private car total solution. But it's a little bit too early to say too much. But yes, we are moving forward to a total solution.

而整體解決方案一直是我們的長期目標並完成機架解決方案。很快，我們將與您分享更多有關我們的私家車整體解決方案的資訊。但現在說太多還為時過早。但確實，我們正在朝著全面的解決方案邁進。

Okay. And then maybe sticking on a similar topic, gross margin was very strong this quarter, up quite a bit on a sequential basis. I'm just curious of what you're seeing on the component pricing environment. What are you embedding in your current quarter expectations as far as DRAM and flash pricing trends? And any thoughts on how that sets up into next year?

好的。然後也許堅持類似的話題，本季的毛利率非常強勁，環比成長相當大。我只是好奇您對零件定價環境的看法。就 DRAM 和快閃記憶體定價趨勢而言，您對本季有何預期？對於明年的安排您有什麼想法嗎？

Yes. I mean, economical scale will help us. So we are growing global now and with new business drive, that will grow our revenue, our economic scale, and that will have our gross margin and net margin for sure. At the same time, the service business, the software value is getting help to our profit as well.

是的。我的意思是，經濟規模將對我們有幫助。因此，我們現在正在全球化發展，有了新的業務驅動，我們的收入、經濟規模就會增加，而且肯定會提高我們的毛利率和淨利。同時，服務業務、軟體價值也對我們的利潤有所幫助。

Your next question comes from the line of Nick Heisler with SIG.

您的下一個問題來自 SIG 的 Nick Heisler。

It's actually Mehdi Hosseini. I have a couple of follow-ups. Kevin, can you help us understand how OpEx is going to play out for the rest of the fiscal year '21?

實際上是梅赫迪·胡賽尼 (Mehdi Hosseini)。我還有一些後續問題。凱文，您能幫助我們了解 21 財年剩餘時間內營運支出的狀況嗎？

Sure, Mehdi. So I think we said that we took some actions in this quarter. We trend some headcount, we actually did a similar kind of trend at the end of September that kind of bore fruit here in the December quarter.

當然，梅赫迪。所以我認為我們說過我們在本季採取了一些行動。我們對一些員工人數進行了趨勢分析，實際上，我們在 9 月底也做了類似的趨勢分析，這種趨勢在 12 月季度取得了成果。

I think, as we look forward in terms of the pace of our hiring, as Charles has mentioned earlier, if we're going to appreciably hire anyone that's going to be Taiwan-based over the course of time. I think our views of OpEx now on a non-GAAP basis is that, I think, we said quarter-on-quarter, somewhat flat, may drift a little bit in the March or June quarter if COVID lifts, and we feel that it's appropriate to give merit increases. But I think we're trying to hover in the mid-90s for a period of time here, and I think that's what you were looking for.

我認為，正如查爾斯之前提到的，就我們的招募速度而言，如果我們要大量招募員工，那麼這些員工將會隨著時間的推移而常駐台灣。我認為，我們現在對非 GAAP 基礎上的營運支出的看法是，我們說過，季度環比增長略有持平，如果新冠疫情解除，3 月或 6 月季度可能會略有下降，我們認為適當給予績點加薪。但我認為我們正試圖在 90 年代中期徘徊一段時間，我認為這就是你所尋找的。

Yes. Got it. And then 2 more questions. One for Charles. Given your expansion in Taiwan and how CapEx effectively increased by 2 to 3x over a 2- year period. In the meantime, you have been able to diversify and target a wider range of end market.

是的。知道了。還有兩個問題。一份給查爾斯。考慮到您在台灣的擴張以及資本支出在兩年內有效增加了2到3倍。同時，您能夠實現多樣化並瞄準更廣泛的終端市場。

How should we think for envision opportunities. In the past, you used to give us a $3 billion revenue target. You're already there. I'm not asking you if you're going to double your revenue, given the increase in capacity. But in the longer term, it seems to me that you can hit revenue CAGR that could be more of a double-digit growth given that 2 to 3x increase in CapEx over the next -- over the last 2 years. Is that the right way to think about opportunities in the next 1 or 2 years?

我們該如何思考才能預見機會。過去，您曾經給我們設定 30 億美元的收入目標。你已經在那裡了。我並不是問你們，在產能增加的情況下，你們的收入是否會翻倍。但從長遠來看，我認為，考慮到未來 2 年（過去 2 年）資本支出增加 2 到 3 倍，收入複合年增長率可以達到兩位數。這是思考未來 1 到 2 年機會的正確方式嗎？

Yes. I mean, a very good question. I mean, as you may know, right, I mean, our DNA, I mean, since 2000 -- year 2000 to 2017, pretty much, our yearly compound growth has been about 20% yearly, right? So I don't believe we won't return to that growth rate or better, right?

是的。我的意思是，這是一個非常好的問題。我的意思是，正如你們可能知道的，對吧，我們的DNA，我的意思是，自2000 年以來- 從2000 年到2017 年，我們每年的複合增長率幾乎都在20% 左右，對吧？所以我不相信我們不會回到那個成長率或更好的成長率，對嗎？

We'll taken the delay behind us. And although COVID-19 is challenging us, but now we enable Taiwan operation, the opportunity in Taiwan with lower cost with almost no COVID-19 impact. I feel very confident we will get back to a 2 digit growth yearly very soon.

我們將克服延遲。儘管新冠肺炎對我們來說是一個挑戰，但現在我們已經啟動了台灣業務，在台灣的機會成本更低，而且幾乎沒有受到新冠肺炎的影響。我非常有信心我們很快就會恢復每年兩位數的成長率。

Hopefully, not just 2 digit, hopefully, we can have -- no reason we cannot get back to more than 20% or 30% growth yearly. So I have a really good feel and very excited to -- in the next few years at least.

希望不僅僅是兩位數，希望我們能夠——沒有理由我們不能恢復到每年超過 20% 或 30% 的成長率。因此我感覺非常好，並且非常興奮——至少在接下來的幾年裡。

Okay. And hopefully, it will be with a higher-margin business. And in that context, Kevin, how should I think about either absolute utilization rate for U.S., San Jose versus Taiwan? Or if you don't want to disclose a specific utilization rate which region is higher. I'm comparing U.S. San Jose to Taiwan?

好的。我希望這能帶來更高的利潤率。在這種情況下，凱文，我該如何看待美國、聖荷西和台灣的絕對利用率？或者如果您不想透露具體的利用率，哪個地區的利用率會更高。我正在將美國聖荷西與台灣進行比較？

Well, right now, the U.S. utilization is higher. I think you heard in my prepared remarks that at the current time, Europe and Asia are suffering a little bit more than the U.S. because the U.S. was the location where we got these new marquee customers.

嗯，目前美國的利用率較高。我想你們從我準備好的發言中已經聽到了，目前，歐洲和亞洲遭受的損失比美國要大一點，因為美國是我們獲得這些新大客戶的所在地。

But I think on a go-forward basis, that capacity utilization needs to obviously increase, and we'll get some leverage off of that. I think it's also fair to say that with -- the U.S. building is not under active construction at the moment. We're taking a little bit of a pause with it where we're moving forward with the Taiwan building. I think once those both get built out, we may have capacity to, on a full tilt basis, almost get to like $6 billion.

但我認為，從未來來看，產能利用率顯然需要提高，我們將從中獲得一些槓桿作用。我認為也可以公平地說——美國大樓目前並未處於積極施工狀態。我們暫時停下來，繼續推進台灣的建設。我認為，一旦這兩項工程都建成，我們可能就有能力全力以赴達到近 60 億美元的目標。

So we would be building that over the course of time as necessary. I'm just talking about the Shell and its capabilities. But that's the kind of profile, I think, that we're looking at, to answer your question.

因此，我們會根據需要逐步建立它。我只是在談論 Shell 及其功能。但我認為，這就是我們正在研究的資料類型，可以回答您的問題。

Yes, indeed, to reach $6 billion, our cap investment won't increase too much. Because the facility capacity pretty much ready here.

是的，確實要達到60億美元，我們的上限投資不會增加太多。因為這裡的設施容量已經基本準備好了。

Yes. So that kind of describes, and in previous calls, I talked about how after we get these buildings done, then our CapEx is going to go back to the modest maintenance. And now you have an understanding of where that's going to be.

是的。所以這就是描述的，在之前的電話會議中，我談到了在我們完成這些建築之後，我們的資本支出將回到適度的維護。現在您已經了解了它將會在哪裡。

Your next question comes from the line of Ananda Baruah with Loop.

您的下一個問題來自 Loop 的 Ananda Baruah。

A few for me, if I could. Just to start, how should we think about the drivers in the December quarter could you tell us what you think the biggest aspects of your business are that will influence the incremental sequential revenue in the December quarter?

如果可以的話，給我幾個吧。首先，我們應該如何看待 12 月季度的驅動因素？

With COVID-19 (inaudible) us, we try to be conservative. So today, we give a range of $780 million to $880 million, I hope it's a conservative number. And again, that's why we just mentioned, we are gaining a high-profile customer in a large cloud, 5G, Telco and video steaming all kind of business. So I believe next few quarters should be our good quarter to grow.

由於新冠肺炎（聽不清楚），我們盡量採取保守態度。所以今天我們給的範圍是 7.8 億美元到 8.8 億美元，我希望這是一個保守的數字。再說一次，這就是我們剛才提到的，我們正在大型雲端、5G、電信和視訊串流等各種業務領域獲得知名客戶。因此我相信接下來的幾季應該是我們成長的好季度。

Yes, I think, Ananda, also, we're going to see some return of the customers that took the pause in September.

是的，阿南達，我認為，我們還會看到一些 9 月暫停營業的顧客回歸。

Got it. Some of the more classic on-prem trends, it sounds like. Isn't that right, Kevin? And Charles, I appreciate your comment about...

知道了。這聽起來像是一些更經典的內部部署趨勢。不是嗎，凱文？查爾斯，我很感謝你對…的評論。

I gave a long list of expected customers, including OEMs and such. So its broad.

我給了一份很長的預期客戶名單，其中包括 OEM 等。所以它的範圍很廣。

Got it. And just with regards to Ice Lake, and I don't want to make -- I don't want to stitch things together that aren't intended to be stitched together. But in the prepared remarks, yes. I think it was Charles, you made mention of slight improvement in December.

知道了。就 Ice Lake 而言，我不想把不該拼接在一起的東西拼接在一起。但在準備好的發言中，是的。我認為是查爾斯，你提到 12 月略有改善。

And then it sounded like kind of in the first half of next year calendar or maybe kind of in first half, a stair step kind of take up. That -- those are my words, but that sounded like the spirit of it. And I guess the question is, to what degree does the availability of Ice Lake play in that relative to just demand you think can get better regardless of Ice Lake, Ice Lake or not?

然後聽起來就像是在明年上半年，或者可能是在上半年，一個階梯式的成長。那——那是我的話，但聽起來像是它的精神。我想問題是，無論有沒有 Ice Lake，您認為 Ice Lake 的可用性在多大程度上相對於需求可以變得更好？

Yes. As you may know, right, Intel Ice Lake now can be available very soon, end of this year or early next year. And we have the strongest product line ever, all available now once the Intel CPU production will be ready to ship in terms of even product line. So we are all ready.

是的。如您所知，英特爾 Ice Lake 很快就會上市，可能是今年年底或明年年初。我們擁有迄今為止最強大的產品線，一旦英特爾 CPU 生產準備好發貨，所有產品線都可以立即使用。所以我們都準備好了。

And it sounds like you think that will have a pretty significant impact when availability occurs.

聽起來您認為當可用性發生時這將產生相當大的影響。

Yes. We are waiting for the new CPUs to be available.

是的。我們正在等待新 CPU 的上市。

Okay, great. And just a linearity question, how did you guys experience it this quarter? And what are you seeing in this month to start December quarter? So how do you experienced in the September quarter? And how does -- how do you feel about sort of November -- sorry, October so far in the context of linearity?

好的，太好了。這只是線性問題，你們本季的體驗如何？那麼，對於 12 月季度開始的這個月，您看到了什麼？那麼您九月季度的經驗如何？那麼，從線性角度來看，您對十一月，抱歉，十月迄今為止的感覺如何？

You mean in terms of Ice Lake or overall business?

你是指 Ice Lake 還是整體業務方面？

Overall, overall.

整體來說，總體來說。

Overall, I believe for the business, we'll be getting stronger, getting better for us for a couple of reasons. Number one, we just created some very high customer in the last few months. And those ramp-up is pretty predictable.

總的來說，我相信，就業務而言，我們會變得更強大，變得更好，原因有兩個。首先，我們在過去幾個月中創造了一些非常高的客戶。這些增長是相當可以預見的。

And second is our Taiwan operations is getting ready, and we just grow some strong team in Taiwan, those teams are ready to grow. So we have a very good feeling in the near future, especially next calendar year. Should be a strong year for us.

第二，我們的台灣業務正在準備就緒，我們剛剛在台灣培養了一些強大的團隊，這些團隊已經準備好成長。因此，我們對不久的將來，特別是明年有非常好的感覺。對我們來說應該是豐收的一年。

(Operator Instructions)

（操作員指令）

Your next question comes from the line of Jon Lopez with Vertical Group.

您的下一個問題來自 Vertical Group 的 Jon Lopez。

I just want one clarification, Kevin, if I could, which is, deferred the last couple of years had trended up pretty nicely. It's kind of flattened out over the last couple of quarters. I'm wondering, is that just because unit volumes have dropped off and is it just a function of attach or is there something else influencing that line item?

凱文，如果可以的話，我只想澄清一件事，那就是過去幾年推遲的趨勢相當不錯。在過去幾季中，這一趨勢已經趨於平穩。我想知道，這是否僅僅是因為單位數量下降了，並且僅僅是附加的功能，還是有其他因素影響該項目？

Well, there's some attach, but it's also true that contracts that we entered into in 2018 through early part of 2019, if you recall, had very elevated commodity costs. And the car for the service as a percentage of revenue.

嗯，有一些附加因素，但如果你還記得的話，我們在 2018 年至 2019 年初簽訂的合約的商品成本確實非常高。以及汽車服務佔收入的百分比。

So we had some more expensive contracts historically. I think we do want to continue working on our attach rate. We do better in some regions than the other, and we need to work on some offshore attach rates to be frank.

因此，從歷史上看，我們有一些更昂貴的合約。我認為我們確實希望繼續努力提高我們的附加率。我們在某些​​地區的表現比其他地區要好，坦白說，我們需要在一些離岸附加率方面下功夫。

Got you. Okay. That's really helpful. Secondly, I'm wondering if you could just rewind a little bit. My recollection, as you guys exited the prior quarter like calendar Q2 was that the bookings activity had slowed pretty sharply.

明白了。好的。這真的很有幫助。其次，我想知道您是否可以稍微倒敘一下。我記得，當你們退出上一季（例如日曆的第二季）時，預訂活動已經急劇放緩。

Can you just walk us from there to here? Was there a pretty appreciable increase in bookings activity? Did that occur pretty linearly? How does that look exiting calendar Q3 versus, say, exiting calendar Q2?

你能陪我們從那裡到這裡嗎？預訂活動是否有明顯增加？這是不是非常線性地發生？與日曆 Q2 相比，日曆 Q3 看起來怎麼樣？

It's gotten healthier. I mean, hence, the guidance.

它變得更健康了。我的意思是，因此，有指導。

Fair point. Okay. 2 more quick ones, if I could. My recollection is cloud, if you look back a couple of years. I can't remember what you guys called it back then maybe Internet Data Center, but it was around 20% of the business or oscillated around that level. Can you guys give us just a rough sense for where that sits now?

公平地說。好的。如果可以的話，再來 2 個快的。如果回首幾年，我的記憶就模糊了。我不記得你們當時如何稱呼它，也許是網路資料中心，但它約佔業務的 20％ 或在該水平附近波動。你們能否大致告訴我們目前的狀況？

Yes. We still are not splitting out our revenue segments right now. But I wave that the topography of it is quite different now. And that is that back in the day that you're referring to, it was a pretty large, greater than 10% customer, where we're greater diversified in that segment right now.

是的。我們目前還沒有拆分我們的收入部門。但我認為現在它的地形已經完全不同了。也就是說，在您所提到的那個時候，它是一個相當大的客戶，超過 10％，目前我們在該領域的多元化程度更高。

Got you. And just on that point, Kevin, is the right way to think about this that you guys are, I mean, for lack of a better term, kind of reentering that vertical. Maybe just talk a little bit about what you guys are perhaps doing differently now.

明白了。就這一點而言，凱文，正確的思考方式是，你們正在重新進入那個垂直領域。也許只是稍微談論一下你們現在可能正在做的不同的事情。

Are you -- it sounds like perhaps diversifying the customer base is one thing. Are you guys pursuing different use cases? Is there may be a bit more geographic spread here? Maybe just talk for a second about how you think about that vertical now versus perhaps how you did, say, 2, 3 years ago?

聽起來也許多樣化客戶群是一回事。你們在追求不同的用例嗎？這裡的地理分佈可能更廣一些嗎？也許您可以花一點時間來談談，您現在對這個垂直行業的看法與 2、3 年前相比有何不同？

Maybe I can share. I mean, we saw our facility in Taiwan getting bigger. And of course, it is much lower than our operation in U.S.A. this year. So with that advantage, now we will start to approach that market much more aggressively than the last few years. So in the other words, we will actually focus on that territory very soon.

也許我可以分享。我的意思是，我們看到我們在台灣的工廠越來越大。當然，這比我們今年在美國的業務要低得多。憑藉這一優勢，我們現在將比過去幾年更加積極地進入該市場。 換句話說，我們很快就會把重點放在那個領域。

Your next question comes from the line of Jon Tanwanteng with CJS Securities.

您的下一個問題來自 CJS Securities 的 Jon Tanwanteng。

Just a quick follow-on to that question. Is it fair to say that it's the cost advantage of moving to Taiwan that is enabling you to win those customers at this point versus whatever else you may be bringing to the table?

我只是想快速回答這個問題。是否可以說，相較於其他因素，遷往台灣的成本優勢讓你們目前能夠贏得這些客戶？

Yes. Because those large Data Center, No. They buy a lot, but they want a more aggressive price. So with our Taiwan operation, now we are much ready to service customers like that.

是的。因為那些大型資料中心，不。因此，透過我們在台灣的業務，我們現在已做好了為這樣的客戶提供服務的準備。

There are no further questions at this time. I will turn the call back over to Charles Liang.

目前沒有其他問題。我會把電話轉回給 Charles Liang。

Thank you a lot for joining us today, and looking forward to seeing you, of course, hopefully very soon, and have a great day. Thank you.

非常感謝您今天加入我們，我們期待與您見面，當然，希望很快，祝您有美好的一天。謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。