新思科技 (SNPS) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the Synopsys earnings conference call for the first quarter of fiscal year 2020. (Operator Instructions) As a reminder, today's call is being recorded. At this time, I would like to turn the conference over to Lisa Ewbank, Vice President of Investor Relations. Please go ahead.

各位女士、先生，感謝您稍候。歡迎參加 Synopsys 2020 會計年度第一季財報電話會議。(接線員指示) 提醒各位，今天的電話會議將被錄音。此刻，我想將會議交給投資人關係副總裁 Lisa Ewbank。請開始。

Thank you, Laurie, good afternoon. Hosting the call today are Aart de Geus, Chairman and co-CEO of Synopsys; and Trac Pham, Chief Financial Officer.

謝謝你，Laurie，大家午安。今天主持電話會議的是 Synopsys 董事長暨共同執行長 Aart de Geus，以及財務長 Trac Pham。

Before we begin, I'd like to remind everyone that during the course of this conference call, Synopsys will discuss forecasts, targets and other forward-looking statements regarding the company and its financial results. While these statements represent our best current judgment about future results and performance as of today, our actual results and performance are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect. In addition to any risks that we highlight during the call, important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.

在開始之前，我想提醒各位，在本次電話會議過程中，Synopsys 將討論與公司及其財務結果相關的預測、目標及其他前瞻性陳述。雖然這些陳述代表我們截至今日對未來結果與表現所做的最佳判斷，但實際結果與表現仍可能受到許多風險與不確定性影響，導致實際結果與我們預期出現重大差異。除我們在會議中可能提及的任何風險外，可能影響我們未來結果的重要因素，已載於我們最新的 SEC 申報文件以及今日的財報新聞稿中。

In addition, we will refer to non-GAAP financial measures during the discussion. Reconciliations to their most directly comparable GAAP financial measures and supplemental financial information can be found in the earnings press release, financial supplement and 8-K that we released earlier today. All of these items, plus the most recent investor presentation are available on our website at synopsys.com. In addition, the prepared remarks will be posted on the site at the conclusion of the call. With that, I'll turn the call over to Aart de Geus.

此外，我們在討論中將引用非 GAAP 財務衡量指標。與其最直接可比的 GAAP 財務衡量指標之調節表，以及補充財務資訊，可在我們今日稍早發布的財報新聞稿、財務補充資料與 8-K 文件中找到。上述資料加上最新的投資人簡報，皆可於我們的網站 synopsys.com 取得。另外，準備好的講稿也將在會議結束後張貼於網站上。接下來，我把電話交給 Aart de Geus。

Good afternoon. Q1 was an excellent start to the year as we met or exceeded all of our guidance targets. Revenue was $834 million with GAAP earnings per share of $0.67 and non-GAAP earnings above our target range at $1.01. In December, we communicated our fiscal '20 guidance: high single-digit revenue growth, substantial ops margin expansion, mid-teens non-GAAP earnings per share growth and more than $800 million in operating cash flow. We are reaffirming our guidance for the year. Trac will discuss the financials in more details.

各位午安。第一季是非常出色的開局，我們達成或超越了所有財測目標。營收為 8.34 億美元，GAAP 每股盈餘為 0.67 美元，非 GAAP 每股盈餘高於我們目標區間，達到 1.01 美元。在 12 月，我們公布了 2020 會計年度指引：營收高個位數成長、營運利潤率大幅擴張、非 GAAP 每股盈餘中十位數成長，以及超過 8 億美元的營運現金流。我們重申全年指引不變。Trac 將更詳細說明財務表現。

Looking at the overall landscape, ongoing geopolitical tension and the recent coronavirus outbreak have generated heightened uncertainty around the world. Regarding the virus outbreak, our first priority has been the safety and health of our employees, customers and partners. We continue to monitor the situation and support our China teams as they continue to drive business execution. Undeterred by those challenges, electronics companies, ranging from traditional semiconductor and systems companies to new startups and hyperscalers, persist in designing ever more complex chips and devices with a high degree of market urgency. Driven by AI and machine learning, automotive, 5G, IoT and cloud expansion, the proliferation of smart everything is and will be the central driver for years to come. As a result, robust demand for our solutions has continued in 2020.

從整體環境來看，持續的地緣政治緊張以及近期的新冠病毒疫情，使全球不確定性升高。就疫情而言，我們的首要任務是員工、客戶與合作夥伴的安全與健康。我們持續監控情勢，並支持中國團隊在推動業務執行上持續前進。儘管面臨這些挑戰，電子公司從傳統的半導體與系統公司到新創與超大規模雲端業者（hyperscalers），仍持續以高度的市場急迫性設計更為複雜的晶片與裝置。在 AI 與機器學習、車用、5G、IoT 與雲端擴張的帶動下，「萬物智慧化」的普及將在未來多年成為核心驅動力。因此，2020 年我們解決方案的強勁需求仍在延續。

Our innovation and technologies, spanning the spectrum from silicon to software, absolutely central to the ambitious products and systems being built. Let me share some product highlights from the quarter, starting with EDA. An important differentiator for Synopsys continues to be our leading position in enabling manufacturing process development. With highly sophisticated simulation of new technologies, new transistors and the structures needed for the most advanced fabs in the world, we not only assist our manufacturing partners but we also lay the groundwork for our design tools to be tuned and ready well before these technologies go into production design.

我們從矽到軟體的創新與技術，對正在打造的雄心勃勃產品與系統而言至關重要。我先分享本季一些產品亮點，從 EDA 開始。Synopsys 的一項重要差異化優勢，仍是我們在促進製造製程開發方面的領先地位。透過對新技術、新電晶體以及全球最先進晶圓廠所需結構的高度精密模擬，我們不僅協助製造合作夥伴，也為我們的設計工具奠定基礎，使其在這些技術進入量產設計之前就能完成調校並準備就緒。

On top of that, over the last several years, Synopsys has pioneered a new approach called Fusion that literally fuses algorithms from different tools, resulting in faster and lower power chips in far less time. A showcase example of this is our Fusion Compiler product introduced about a year ago. Within just a few months of its introduction, Fusion Compiler revealed itself as a revolutionary product. It is winning head-to-head benchmarks with consistently superior performance, power and area results across a broad set of applications. Results thus far are ahead of our initial plan, with many customer [engagements] progressing very well from exploring the tool to usage on a few life design blocks to production rollout.

此外，在過去幾年中，Synopsys 開創了一種稱為 Fusion 的新方法，將不同工具的演算法真正「融合」在一起，使晶片能在更短時間內達到更快速度與更低功耗。其中一個展示性的例子，是我們約一年前推出的 Fusion Compiler 產品。在推出後短短幾個月內，Fusion Compiler 就展現其革命性。在廣泛的應用中，它在正面基準測試中持續以更優異的效能、功耗與面積（PPA）結果勝出。迄今成果超出我們的初始規劃，許多客戶[合作案]從探索工具、在少數實際設計模組上使用，進展到量產導入都非常順利。

In Q1, we built upon several breakthrough competitive wins ranging from the largest global communications process and graphics firms to high-impact cloud hyperscalers to multiple influential system houses. For example, AMD chose Fusion Compiler for its full flow digital design implementation of its next-generation processes. Fusion Compiler is displacing the competition at a large hyperscaler for our next-generation ARM core-based graphics design at 5-nanometer and below. We achieved a significant win at a large multinational consumer electronics company on next-gen ARM CPU core.

在第一季，我們在多項突破性的競爭性勝利上再接再厲，涵蓋全球最大的通訊製程與繪圖（graphics）公司、高影響力的雲端超大規模業者，以及多家具影響力的系統公司。例如，AMD 選擇 Fusion Compiler，用於其下一代製程的完整數位設計實作流程。在一家大型 hyperscaler，我們的 Fusion Compiler 正在以 5 奈米及以下節點、基於下一代 ARM 核心的繪圖設計，取代競爭對手。我們也在一家大型跨國消費性電子公司，於下一代 ARM CPU 核心方面取得重大勝利。

We're expanding displacement and deployment at a leading mobile company for critical 5G designs at 5- and 4-nanometer. A leading U.S. semiconductor company is deploying Fusion Compiler on all new graphics designs, taking advantage of better run time and quality of results. We displaced the competition for ARM core designs at a leading automotive semiconductor company, and we expanded proliferation at a large U.S. semiconductor leader with a new win in wireless design.

我們正在一家領先的行動裝置公司擴大替換與部署，用於 5 奈米與 4 奈米的關鍵 5G 設計。一家領先的美國半導體公司正將 Fusion Compiler 部署於所有新的繪圖設計，藉此受益於更佳的執行時間與結果品質。我們在一家領先的車用半導體公司之 ARM 核心設計上取代了競爭對手，並在一家美國大型半導體領導廠商擴大滲透，於無線設計取得新的勝利。

While still relatively early in our multiyear product cycle, these important wins represent significant momentum and usage share gains, which will flow into revenue over time. The Fusion concept is very powerful and is getting great results across Synopsys as our innovation continues at a rapid pace. Stay tuned for some exciting new product announcements as we approach our March Silicon Valley user group event.

雖然我們仍處於多年產品週期的相對早期階段，但這些重要勝利代表顯著的動能與使用市占提升，並將隨時間反映到營收上。Fusion 的概念非常強大，並在 Synopsys 各領域帶來很好的成果，我們的創新也持續快速推進。隨著我們接近 3 月的矽谷使用者群組活動，敬請期待一些令人振奮的新產品公告。

Let me now turn to custom design, a product area that underwent a multiyear innovation push and has seen excellent progress over the last 18 months. Not only are we now highly competitive for advanced nodes, we continue to see a growing number of displacements and full flow engagements. Our expansion is driven by fresh innovations focused on maximizing designer productivity. Customers are experiencing this benefit, and we saw excellent growth in revenue from our Custom Compiler product again this quarter.

接著談客製化設計（custom design）。這個產品領域經歷了多年的創新推進，並在過去 18 個月取得極佳進展。我們不僅在先進節點上具備高度競爭力，也持續看到更多的替換案例與全流程合作案。我們的擴張動能來自於聚焦於最大化設計師生產力的全新創新。客戶正在體驗這項效益，而本季我們的 Custom Compiler 產品營收再次呈現優異成長。

For example, a high-impact global systems company expanded its full flow usage of -- in Q1, proliferating after a significant competitive displacement. Additional Custom Compiler wins include a leading silicon photonics developer and a CMOS image sensor company.

例如，一家高影響力的全球系統公司在第一季擴大其全流程使用——在一次重大的競爭性替換之後，進一步擴散導入。其他 Custom Compiler 的勝利還包括一家領先的矽光子（silicon photonics）開發商，以及一家 CMOS 影像感測器公司。

Let me now move to our Verification Continuing Platform, where we maintain our #1 market share position. In verification software, we gained share in Q1 at a large global hyperscaler, driven by their growing needs for verification capacity across our platform. Meanwhile, demand for hardware-based verification is high across the board, driven by continued complexity growth in new designs. The speed and capacity of our solutions are particularly well suited whenever software bring-up is involved.

接下來談我們的驗證持續平台（Verification Continuing Platform），我們在此維持 #1 的市占地位。在驗證軟體方面，我們在第一季於一家大型全球 hyperscaler 取得市占提升，主要受其在整個平台上對驗證產能需求成長所帶動。同時，硬體式驗證的需求全面走高，原因在於新設計的複雜度持續增加。當涉及軟體 bring-up 時，我們解決方案的速度與容量尤其合適。

While a strong Q1 last year makes for a tough year-over-year hardware comparison, we continue to gain momentum with both new and existing customers. In Q1, we gained 9 new logos and 34 repeat orders, including very high-profile systems and semiconductor companies. NEC, for example, chose our ZeBu emulation system over the incumbent for their high-performance compute solutions due to our superior performance, very fast bring-up time and unique debug visibility. In Q1, we also announced the acquisition of the DINI Group, which further expands our HAPS FPGA-based prototyping portfolio.

雖然去年第一季的強勁表現使硬體業務的年對年比較更具挑戰，但我們在新客戶與既有客戶兩方面仍持續累積動能。第一季我們新增 9 個新客戶標誌（logos）並取得 34 筆回購訂單，其中包括多家極具知名度的系統與半導體公司。例如，NEC 因我們更優異的效能、非常快速的 bring-up 時間以及獨特的除錯可視性，選擇我們的 ZeBu 模擬（emulation）系統取代既有供應商，用於其高效能運算解決方案。第一季我們也宣布收購 DINI Group，進一步擴充我們以 HAPS 為核心、基於 FPGA 的原型驗證（prototyping）產品組合。

Now to IP, which continues to deliver strong results. As the #1 provider of interface, embedded memory, analog and foundry-specific IP, we provide the industry's broadest portfolio covering all key markets: AI, automotive, cloud, IoT and 5G mobile. Our demonstrated strength in high-performance cloud computing applications is evident in several areas. We've already achieved more than 60 design wins in PCI Express 5.0. Our new die-to-die 56- and 112-gig SerDes continues to gain market traction. We also had a significant IP portfolio win with a major China e-commerce company for micro server applications.

現在談到 IP，該業務持續交出強勁成果。作為介面、嵌入式記憶體、類比以及晶圓代工特定 IP 的第一大供應商，我們提供業界最廣泛的產品組合，涵蓋所有關鍵市場：AI、汽車、雲端、IoT 與 5G 行動通訊。我們在高效能雲端運算應用方面的既有實力，體現在多個領域。我們在 PCI Express 5.0 已取得超過 60 項設計導入（design wins）。我們新的 die-to-die 56 與 112 gig SerDes 持續獲得市場採用。我們也在微型伺服器應用方面，與一家中國大型電商公司取得重要的 IP 產品組合勝出。

Our leadership position in USB led to multiple Tier 1 processor semiconductor companies adopting our newest generation USB 4.0 IP in a leading 5-nanometer process. We're also seeing unmatched leadership and momentum in automotive where our automotive-grade IP is being used by 10 of the top 11 semiconductor suppliers to that industry. One notable example is Qualcomm, which selected our automotive IP portfolio including interface, ARM processors and embedded test and repair solutions for the new Snapdragon Ride platform for autonomous driving.

我們在 USB 的領先地位，促使多家一線（Tier 1）處理器半導體公司在領先的 5 奈米製程中採用我們最新一代的 USB 4.0 IP。我們也看到在汽車領域具備無可匹敵的領導地位與動能，我們的車規級 IP 已被該產業前 11 大半導體供應商中的 10 家採用。其中一個值得一提的例子是 Qualcomm，其為自動駕駛的新 Snapdragon Ride 平台選擇了我們的汽車 IP 產品組合，包含介面、ARM 處理器以及嵌入式測試與修復解決方案。

Finally, we continue to expand our IP portfolio with the acquisition of technologies from eSilicon and INVECAS, the latter closing just last week. Along with valuable technology, these acquisitions also enable us to further scale our IP development to meet high customer demand across growing markets.

最後，我們透過收購 eSilicon 與 INVECAS 的技術，持續擴充我們的 IP 產品組合，其中後者就在上週完成交割。除了寶貴的技術之外，這些收購也讓我們能進一步擴大 IP 研發規模，以滿足成長市場中客戶的高度需求。

Now to software integrity, the tools that test software code for security, vulnerabilities and quality issues. We delivered a solid beginning to the year with business levels up more than 30% over the same period last year. We see -- we saw continued progress in driving multiyear, multimillion-dollar agreements, booking several across multiple verticals. As I mentioned in December, we have entered Phase 2 of our strategy, scaling into the $500 million to $1 billion revenue space.

接著談軟體完整性（software integrity），也就是用來測試軟體程式碼在安全性、弱點與品質問題的工具。我們在年初交出穩健的開局，業務量較去年同期成長超過 30%。我們看到——我們也看到在推動多年期、數百萬美元等級合約方面持續取得進展，並在多個垂直產業簽下數筆訂單。如我在 12 月提到的，我們已進入策略的第 2 階段，擴張至 5 億至 10 億美元營收規模。

To accomplish this, we're focused on 4 areas: one, expanding our cloud-based Polaris Software Integrity Platform through additional product integrations; two, scaling consulting engagements to fully leverage a key differentiator in the software DevOps market; three, refining our channel to better serve large enterprise customers, key market verticals and new regional business; and four, evolving our management team for the complexity and size of a larger business.

為了達成此目標，我們聚焦 4 個領域：第一，透過更多產品整合，擴展我們的雲端式 Polaris Software Integrity Platform；第二，擴大顧問服務專案，以充分發揮我們在軟體 DevOps 市場的關鍵差異化優勢；第三，優化通路，以更好地服務大型企業客戶、關鍵垂直市場與新的區域業務；第四，因應更大型企業的複雜度與規模，調整並進化管理團隊。

We're moving fast on all of these. Just last week, we announced the expansion of the Polaris platform, bringing static testing and software composition analysis directly to the developer's desktop. This first-of-its-kind solution enables developers to seamlessly find and fix security weaknesses in proprietary code and known vulnerabilities in open source code, all within their desktop development environment.

我們在這些方面都在快速推進。就在上週，我們宣布擴展 Polaris 平台，將靜態測試與軟體組成分析直接帶到開發者的桌面端。這項業界首創的解決方案，讓開發者能在其桌面開發環境中無縫找出並修復專有程式碼中的安全弱點，以及開源程式碼中的已知漏洞。

We also added the team and products from Tinfoil Security, broadening our product offerings for Dynamic Application Security Testing or DAST and adding API scanning capability. Our scaling efforts in the field are also progressing well as we've ramped up hiring activity and are excited about the sales energy in the organization.

我們也加入了 Tinfoil Security 的團隊與產品，擴大我們在動態應用程式安全測試（DAST）的產品供給，並新增 API 掃描能力。我們在前線擴張方面的努力也進展良好，因為我們已加速招募，並對組織內的銷售動能感到振奮。

A good example of the power of the combination of products and consulting is one of the largest pharmaceutical companies in the world. A relationship that began with a small initial service engagement to help them respond to a security breach has grown to include both product purchases and now additional services to help them proliferate our solutions.

產品與顧問服務結合所展現的力量，一個很好的例子是全球最大的製藥公司之一。這段關係起初是從一個小型的初始服務專案開始，協助他們因應一次資安事件，之後逐步擴大，包含產品採購，並且現在也加入更多服務，協助他們推廣我們的解決方案。

We're also moving fast to scale our leadership and management team to the next level. We have launched an external search for a new general manager to lead the organization into the $500 million to $1 billion level. While these efforts will flow into revenue over time, we're encouraged by the positive start. There's a tremendous opportunity in this space, and we're well positioned to enable companies to improve the security and quality of their software with a combination of high-value products, a great new platform and enabling consulting services.

我們也在快速推進，將領導與管理團隊擴充到下一個層級。我們已啟動對外招募，尋找一位新的總經理，帶領組織邁向 5 億至 10 億美元規模。雖然這些努力會隨時間逐步反映到營收上，但我們對於正向的開局感到鼓舞。這個領域有巨大的機會，而我們具備良好定位，能以高價值產品、全新的優秀平台，以及賦能型顧問服務的組合，協助企業提升其軟體的安全性與品質。

In closing, Q1 was a very good start to the year. We delivered strong financial results and are reaffirming our outlook for fiscal 2020. Even with some caution around global markets, electronics companies continue to invest in critical chip and system designs as well as immense amounts of sophisticated software. Our innovation engine is prolific. And this quarter, we will be introducing a number of exciting new products and differentiating capabilities. We are committed and on track towards our mid- and long-term growth and margin expansion targets.

總結來說，第一季是今年非常好的開端。我們交出強勁的財務成果，並重申 2020 會計年度的展望。即使對全球市場仍保持一定審慎，電子公司仍持續投資於關鍵晶片與系統設計，以及大量高階軟體。我們的創新引擎產出豐沛。而在本季，我們將推出多項令人振奮的新產品與差異化能力。我們承諾並正按計畫朝向中長期的成長與毛利率擴張目標前進。

Finally, let me thank our customers for their business and our employees for their dedication and hard work in delivering continued strong results. Trac will now highlight the financial perspective.

最後，讓我感謝客戶的支持，也感謝員工的投入與辛勤付出，讓我們得以持續交出強勁成果。接下來由 Trac 說明財務觀點。

Thanks, Aart. Good afternoon, everyone. We delivered a strong start to the year, meeting or exceeding our guidance targets for the quarter and we are on pace for our full year plan. We remain relentlessly focused on execution, generating revenue for the quarter at the high end of our target range and non-GAAP earnings per share well above the range. We produced another quarter of strong collections, which contribute to positive cash flow in a quarter that's typically an outflow due to variable compensation payouts, and we launched a $100 million share repurchase.

謝謝你，Aart。各位下午好。我們在年初交出強勁開局，本季達成或超越我們的財測目標，並正按全年計畫進度推進。我們仍以極高的執行力為核心，本季營收落在目標區間的高端，非 GAAP 每股盈餘更明顯高於區間。我們再度創造一季強勁的收款表現，促成正向營運現金流；而本季通常因變動薪酬發放而呈現現金流出，同時我們也啟動了 1 億美元的庫藏股回購。

Our increasingly diverse customer base and strong product portfolio combined with our nearly 90% recurring revenue model, position us for success in periods of high demand as well as those of greater uncertainty. Multiple factors, including the entity list export restrictions and broader trade tensions as well as the coronavirus situation have added to market volatility. Based on our current view and the strength of our business, we are confident in our ability to manage through this uncertainty, and we are reiterating our guidance for the year.

我們日益多元的客戶基礎與強大的產品組合，再加上近 90% 的經常性收入模式，使我們在需求旺盛以及不確定性較高的時期都能取得成功。多項因素，包括實體清單（entity list）出口限制與更廣泛的貿易緊張局勢，以及新冠病毒情勢，都加劇了市場波動。基於我們目前的觀察與業務的強勁表現，我們有信心能在此不確定性中妥善應對，因此我們重申全年財測指引。

I'll now review our first quarter results. All comparisons are year-over-year unless otherwise stated. We generated total revenue of $834 million. Semiconductor & System Design segment revenue was $749 million, with strong growth in IP and a tough hardware comparison over a strong Q1 of last year. Excluding hardware and the impact of entity list trade restrictions, EDA software results remained within our long-term target range of mid- to high single digits.

接下來我將回顧第一季業績。除非另有說明，所有比較皆為年對年。我們的總營收為 8.34 億美元。半導體與系統設計事業部營收為 7.49 億美元，IP 強勁成長，但硬體部分在去年第一季基期較高下形成較具挑戰的比較。若排除硬體以及實體清單貿易限制的影響，EDA 軟體的表現仍落在我們長期目標區間的中至高個位數成長。

Software Integrity segment revenue was $86 million, 10% of total, and business levels for the quarter increased more than 30%. Because of our largely time-based model, the associated revenue will be recognized over the life of the contracts.

軟體完整性事業部營收為 8,600 萬美元，占總營收 10%，本季業務量成長超過 30%。由於我們主要採時間型（time-based）模式，相關營收將在合約期間內逐步認列。

Moving on to expenses. Total GAAP costs and expenses were $747 million, which includes approximately $9 million in restructuring costs. Total non-GAAP costs and expenses were $647 million, resulting in a non-GAAP operating margin of 22.4%. Our Q1 margin reflects revenue profile this year as well as a change in the timing of general salary increases now in Q1. We are on track to generate approximately 200 basis points of op margin expansion for the year. Adjusted operating margin for Semiconductor & System Design was 23.9% and Software Integrity was 9.4%. Finally, GAAP earnings per share were $0.67 and non-GAAP earnings per share were $1.01.

接著談費用。GAAP 總成本與費用為 7.47 億美元，其中包含約 900 萬美元的重整費用。非 GAAP 總成本與費用為 6.47 億美元，使非 GAAP 營業利益率為 22.4%。我們第一季的利潤率反映了今年的營收組合，以及一般薪資調升時點改為在第一季的影響。我們正按計畫在今年實現約 200 個基點的營業利益率擴張。半導體與系統設計的調整後營業利益率為 23.9%，軟體完整性為 9.4%。最後，GAAP 每股盈餘為 0.67 美元，非 GAAP 每股盈餘為 1.01 美元。

Turning to cash. We generated a $10 million in operating cash flow. Including the $100 million Q1 ASR, we've repurchased $1.9 billion of our stock since 2015 or approximately 80% of our free cash flow returned to shareholders over that period. We ended the quarter with a cash balance of $700 million and total debt of $331 million.

接著看現金。我們創造了 1,000 萬美元的營運現金流。包含第一季 1 億美元的 ASR（加速股票回購）在內，自 2015 年以來我們已回購 19 億美元自家股票，約相當於該期間自由現金流的 80% 回饋給股東。本季期末現金餘額為 7 億美元，總負債為 3.31 億美元。

A couple of comments before I move on to our targets. As I've noted, we delivered a strong start to the year and we are reiterating our full year guidance. We are maintaining our first half-second half revenue split of roughly 45%-55%, which reflects forecasted timing of IP and hardware deliveries as well as general prudence, given the uncertainty around the unfolding coronavirus situation.

在我進入我們的目標之前，先補充幾點說明。如我先前提到的，我們在年初交出強勁的開局，並重申我們的全年指引。我們維持上半年/下半年營收約45%/55%的分配，這反映了IP與硬體交付的預期時點，以及在新冠病毒疫情發展仍具不確定性的情況下所採取的一般審慎態度。

For fiscal 2020, we are targeting revenue of $3.6 billion to $3.65 billion; total GAAP costs and expenses between $2.95 billion and $3 billion; total non-GAAP costs and expenses between $2.63 billion and $2.66 billion, resulting in a non-GAAP operating margin of approximately 27%; GAAP earnings of $3.68 to $3.87 per share; non-GAAP earnings of $5.18 to $5.25 per share; cash flow from operations of $800 million to $825 million and capital expenditures of approximately $180 million. We expect capital expenditures to decline in 2021.

就2020會計年度而言，我們的目標為營收36億至36.5億美元；GAAP總成本與費用介於29.5億至30億美元；非GAAP總成本與費用介於26.3億至26.6億美元，對應非GAAP營業利益率約27%；GAAP每股盈餘3.68至3.87美元；非GAAP每股盈餘5.18至5.25美元；營運活動現金流8億至8.25億美元，資本支出約1.8億美元。我們預期2021年的資本支出將下降。

Now to the targets for the second quarter: revenue between $820 million and $850 million; total GAAP costs and expenses between $724 million and $758 million; total non-GAAP costs and expenses between $645 million and $665 million; GAAP earnings of $0.49 to $0.62 per share and non-GAAP earnings of $0.96 to $1.01 per share.

接著是第二季的目標：營收介於8.2億至8.5億美元；GAAP總成本與費用介於7.24億至7.58億美元；非GAAP總成本與費用介於6.45億至6.65億美元；GAAP每股盈餘0.49至0.62美元，非GAAP每股盈餘0.96至1.01美元。

In conclusion, our focused execution enabled us to again deliver strong results, meeting or exceeding our targets. With a very good start in Q1, we are reaffirming the full year guidance provided in December. We are also tracking well to our goals of high 20s operating margin by 2021 and profitability at 30% range longer term as we move towards our next milestone of $4 billion in revenue.

總結來說，我們聚焦的執行力使我們再次交出強勁成果，達成或超越我們的目標。在第一季有非常好的開局之下，我們重申12月所提供的全年指引。同時，隨著我們朝下一個40億美元營收里程碑邁進，我們在2021年前達成接近30%（high 20s）的營業利益率目標，以及長期達到約30%區間獲利能力的目標，進展也相當順利。

We remain committed to a balanced capital allocation strategy, consisting of investing in the business for growth while continuing to return capital to shareholders as we focus on driving sustainable long-term shareholder value. And with that, I'll turn it over to the operator for questions.

我們仍致力於均衡的資本配置策略：一方面投資業務以推動成長，另一方面持續回饋股東，同時專注於驅動可持續的長期股東價值。接下來我把時間交給接線生，進行提問。

(Operator Instructions)

（接線生指示）

And our first question from the line of Rich Valera with Needham & Company.

第一個問題來自Needham & Company的Rich Valera。

Our question on Software Integrity. So you mentioned you had very good business levels. I think you said 30% increase in business levels, but it looked like revenue decelerated pretty sharply in the business. I just wanted to understand if business levels refer to bookings, and why the deceleration in revenue and what might drive that to reaccelerate.

我們的問題關於Software Integrity。你提到業務量表現非常好。我想你說業務量增加了30%，但看起來該業務的營收增速卻明顯放緩。我想了解業務量是否指的是訂單（bookings），以及為什麼營收會放緩、又是什麼因素可能帶動它重新加速。

So you're correct. Business levels refer to bookings. And you may recall that last quarter reported that 2019 had been relatively weak in terms of bookings. And so what you saw is the result of that plus whatever was transacted during the quarter. And so our objective obviously is to now build back to a high level and we will actively pursue that.

你說得沒錯。業務量指的是訂單（bookings）。你可能還記得，我們上季提到2019年的訂單相對偏弱。因此你看到的是那個因素加上本季成交的內容所共同造成的結果。我們的目標很明確，就是把訂單水準拉回到較高水準，我們也會積極推進。

Any thoughts or commentary on when that business might reaccelerate sort of into the double digits or teens?

對於該業務何時可能重新加速、回到雙位數或十幾%的增長，有沒有什麼想法或評論？

Well, I mean, we just finished what we thought was a strong quarter, so it's easier said than done to just keep doing that, but that's obviously the objective, right, is to invest in some of the channel areas specifically that I think can be more balanced for the opportunity space and make sure that we move fast on the deployment of the Polaris platform and the integration of new capabilities. Those are sort of some of the cornerstones to the success of the long-term business.

嗯，我們剛結束一個我們認為很強勁的季度，所以要持續做到並不容易，說起來比做起來簡單；但那顯然就是目標，對吧？也就是投資在一些通路領域上，我認為這些領域能讓機會版圖更均衡，同時確保我們快速推進Polaris平台的部署以及新能力的整合。這些都是長期業務成功的一些基石。

Rich, just keep in mind that in December, we also highlighted that the -- in December, we highlighted the long-term growth for this business over a multiyear period is 15% to 20%. And we are committed to that and we should be able to grow at least with the market or faster.

Rich，另外請記得，我們在12月也強調過——在12月我們指出，這項業務在多年期的長期成長目標是15%到20%。我們對此承諾不變，而且我們應該能至少跟上市場、甚至快於市場成長。

Got it. Just a quick follow-up to that. Aart, you've talked about the sales force realignment and it sounds like some new personnel being brought in. Where do you think that both that sales force is in terms of structure and personnel relative to where you want it to be? Is there more you need to bring in? You think you feel like you've got pretty much the sort of the headcount you need to drive the business forward?

了解。我再快速追問一下。Aart，你談到銷售團隊的重新調整，聽起來也引進了一些新的人員。你認為目前銷售團隊在組織架構與人員配置上，距離你希望達到的狀態還差多少？還需要再補進更多人嗎？你覺得目前的人力規模大致已足以推動業務向前嗎？

Well, we're now in active hiring. We have hired a number of people. It's both a combination of tuning, meaning putting it in the right organization and simultaneously filling the holes as we see opportunities, and there are plenty of opportunities. So no, we are far from done but we have a good start. And actually, some of the changes that we made in '19 appear to have generated quite a bit of energy on the part of the sales force that feels that they have a better shot this year than last year.

我們現在正積極招募。我們已經聘用了不少人。這同時包含調整（tuning），也就是把組織放到正確的位置；並且在我們看到機會之處同步補上缺口，而機會其實很多。所以不，我們離完成還很遠，但已經有一個不錯的開始。而且，我們在2019年所做的一些變更，似乎為銷售團隊帶來了相當多的動能，因為他們覺得今年比去年更有勝算。

I'd also reiterate that as part of our plan, we did contemplate the hiring, the additional hirings in that business. We'll continue to invest in that business as it scales. And as we said in December, which we're still on track for us maintaining margins relatively flat year-over-year. So all the commentary that we described is consistent with how we're managing the business.

我也想再次強調，作為我們計畫的一部分，我們確實已將該業務的招募、額外增員納入考量。隨著該業務規模擴大，我們會持續投資。而且如同我們在12月所說，我們仍按計畫維持利潤率大致年對年持平。因此，我們所描述的所有評論，都與我們管理這項業務的方式一致。

Got it. Yes, the bookings sound encouraging. Look forward to seeing the progress there.

了解。是的，訂單聽起來令人鼓舞。期待看到那邊的進展。

And our next question from the line of Joe Vruwink with Baird.

下一個問題來自Baird的Joe Vruwink。

That's one of the easier questions. It sounds like we have no connection, operator.

這算是比較簡單的問題之一。接線生，看起來我們沒有連線。

We'll go to our next person, Mitch Steves with RBC Capital Markets.

我們將轉到下一位，RBC Capital Markets的Mitch Steves。

The first 1 I kind of wanted to point to is for Trac. So given the coronavirus, some of the other macro concerns, my question is since you guys beat pretty nicely in the first quarter, would you have raised the full year, assuming that there was no macro change? Or do you believe that this is already encapsulated in your full year guide?

我第一個想問的是關於Trac。考量新冠病毒以及其他總體面的疑慮，我的問題是：既然你們第一季明顯優於預期，如果沒有總體環境的變化，你們是否會上調全年指引？或者你們認為這些因素已經反映在你們的全年指引之中？

It's affecting our guidance. I would say that it's not a meaningful impact to the year. We did get a very strong start to the year. So after 90 days, we feel very good about the outlook for the business on a full year basis. As we typically do describe, after 1 quarter, it's a good start and it gives us good progress through the year but there's still a lot of business left to book.

它確實影響了我們的指引。我會說，對全年而言影響並不重大。我們在年初有非常強勁的開局。因此在90天之後，我們對全年業務展望感到非常樂觀。如同我們通常所說，一個季度之後，這是個好的開始，讓我們在全年推進上有不錯的進度，但仍有很多業務有待取得訂單。

If I may add to that, our business is actually mostly multiyear. And so we have actually a fairly high degree of stability in our business towards events like this. At the same time, it is clear that some of the customers or the customers' customers are impacted because they may not be able to ship products. And so it remains to be seen if that makes its way all the way to us. But mostly, we're quite isolated or insulated, I should say, from these type of problems.

如果我可以補充，我們的業務其實多數是多年期合約。因此，面對這類事件，我們的業務其實具有相當高的穩定性。同時也很明顯，有些客戶或客戶的客戶受到影響，因為他們可能無法出貨產品。因此這是否會一路傳導到我們這裡，仍有待觀察。但整體而言，我們與這類問題的關聯度相對較低，或者說，我們相對具有緩衝/隔離效果。

Okay. Got you. And then for my second one, just on the core EDA business, you guys have talked about mid- to high single-digit growth. But if I look at this, it looks like for the last about 6 quarters now, it's been below about 4%. So I guess, why is the time-based revenue flat year-over-year if EDA software is still growing mid- to high singles? Is that just going to accelerate in the back half? And if so, I'm just trying to understand why that would be the case.

好的。了解。那我的第二個問題是，關於核心 EDA 業務，你們談到中到高個位數的成長。但如果我看這裡，過去大約 6 個季度，看起來都低於大約 4%。所以我想問，如果 EDA 軟體仍以中到高個位數成長，為什麼按時間認列（time-based）的營收卻年對年持平？這會在下半年加速嗎？如果會，我只是想了解為什麼會是這樣。

Yes, Mitch, I would separate the -- that question to 2 parts. The first part is, keep in mind that emulation does show up in the EDA line. So from a product perspective, we've continued to grow very nicely in hardware, and that tends to be lumpy quarter-to-quarter but is continued growth on a multiyear basis, that will affect the comparison. The second part, which you're trying to connect to is this license type of time-based. Remember that last year, we did transition to 606. And the mix that you're going to see in the time-based versus the upfront line is affected by that revenue transition.

是的，Mitch，我會把這個問題分成兩個部分。第一部分是，請記住模擬器（emulation）也會反映在 EDA 這一行裡。所以從產品角度來看，我們在硬體方面持續有很不錯的成長，而硬體通常季度之間會比較波動，但以多年期來看是持續成長的，這會影響比較基期。第二部分，也就是你想要連結的是這種授權類型的按時間認列。請記得去年我們轉換到 606。而你在按時間認列與一次性（upfront）之間看到的組合，會受到那次營收轉換的影響。

As we described, the numbers and the comparisons for EDA is colored by the timing of hardware this year as well as the entity list that was affecting both the EDA and IP line. But we still feel very comfortable about our long-term and -- our model to drive in the mid- to high single digits.

如我們所描述，EDA 的數字與比較會受到今年硬體時點的影響，以及實體清單（entity list）對 EDA 與 IP 兩條線的影響。但我們對長期而言、以及我們推動中到高個位數成長的模型，仍然非常有信心。

Go back to Joe Vruwink's line. He is with Baird.

回到 Joe Vruwink 的線上。他來自 Baird。

Can you hear me now?

你們現在聽得到我嗎？

We can.

聽得到。

I wanted to revisit the last question just regarding EDA performance. And I think obviously appreciating the market uncertainty, but your customers seem to have a more optimistic view on their R&D activity in 2020 and, I would argue, 2021. If that acceleration does come through, is there any reason why your EDA business wouldn't participate in that trend?

我想回到上一個問題，關於 EDA 的表現。我想當然理解市場不確定性，但你們的客戶似乎對 2020 年、我也可以說 2021 年的研發活動有更樂觀的看法。如果那個加速真的出現，有沒有任何理由讓你們的 EDA 業務不會參與這個趨勢？

No. There's no reason it would not participate because we -- as I think somewhat mentioned in the preamble, we see customers be quite aggressive in what they're designing. And so fundamentally, we are in a good market, and therefore, participation, be it in EDA or IP in that, is absolutely part of where we should do well. I think we're cautious just because there's been so many changes in the global market that have had some impact. As we gave out the numbers, we encompass the fact that we thought there would be no change to the entity list. And so those are the type of things that we're dealing with for the year. But fundamentally, actually, I think that we are in a long-term good market, leaving alone massive GDP fluctuation or anything like that. The technology needs are high for us and that's very encouraging.

沒有。沒有理由不會參與，因為我們——如同我在前面鋪陳中多少提到的——看到客戶在設計上相當積極。因此從根本上說，我們處在一個好的市場，所以不論是在 EDA 或 IP 上參與其中，絕對是我們應該表現良好的方向。我想我們之所以謹慎，只是因為全球市場出現了很多變化，並帶來一些影響。在我們給出數字時，我們已把我們認為實體清單不會有變動這件事納入考量。所以這些就是我們今年要面對的事情。但從根本上來看，撇開巨大的 GDP 波動或類似因素，我其實認為我們處在一個長期良好的市場。我們所面對的技術需求很高，這非常令人鼓舞。

And then if I can follow up on Software Integrity and maybe trying to reconcile the comments a quarter ago that orders were a bit softer to what seems really like a snapback to this 30% type number. Is that just the actions you outlined a quarter ago and you started out the call talking about? Are those beginning to bear fruit already or are there some other things going on?

另外我想追問一下 Software Integrity，並嘗試把一季前你們提到訂單稍微偏弱的評論，和現在看起來像是回彈到這種 30% 的數字做個對照。這只是你們一季前概述、以及你們在電話會議一開始提到的那些行動所帶來的結果嗎？那些是否已經開始見效，還是有其他因素在發生？

Well, partially, the answer is definitely bear fruit because we have invested and made quite a number of changes certainly in the latter part of 2019. At the same time, I don't want to set the expectation that over 30% is the norm for every quarter. That's not what we're guiding towards. But the fact is, this was a very good quarter from an orders point of view, and so that will manifest itself in revenue over time. So I think we have a lot of opportunities to evolve the business, to be capable of rising above the $0.5 billion mark. And then you're sort of in a different league of management. And so many of the investments that we're making are really all aimed at the scale of scaling to that next level.

嗯，部分答案確實是開始見效，因為我們在 2019 年後段投入並做了相當多的改變。同時，我不想讓大家預期每一季都會超過 30%。那不是我們的指引方向。但事實是，從訂單角度來看，這是一個非常好的季度，而這會隨時間反映在營收上。所以我認為我們有很多機會去演進這個業務，使其有能力突破 5 億美元的門檻。然後你就算是進入另一個管理層級。因此我們正在做的許多投資，都是為了把規模擴展到下一個層級。

And our next question from the line of Jackson Ader with JPMorgan.

下一個問題來自 JPMorgan 的 Jackson Ader。

The first 1 is on hardware. So coming out of last year, you mentioned that some large hardware deals slipped, and I'm not sure if we heard an update on what the expectations are for the timing and delivery of those now in 2020.

第一個問題是關於硬體。去年年底你們提到有一些大型硬體交易遞延了，我不確定我們是否聽到你們對 2020 年這些交易的時點與交付的最新預期。

Well, we typically don't give a specific timing of shipments because some people try to understand which customer did walk to whom. But the bottom line is one of the reasons that we think we have a strong year overall is that hardware will be strong and actually, the demand continues in that direction. It is also true that the delivery is lumpy, and that in itself is visible somewhat in the first half, second half of the year.

嗯，我們通常不會給出具體的出貨時點，因為有些人會試圖推敲是哪個客戶、對應到哪個客戶。但重點是，我們之所以認為整體今年會很強，其中一個原因是硬體會很強，而且需求確實持續朝那個方向走。同時也確實，交付會比較不均勻（lumpy），而這點在上半年、下半年的分布上也會有些可見。

Okay. I think I can follow the breadcrumbs there. And then just a follow-up on the Fusion wins, the competitive wins, specifically where you were -- where you mentioned you were displacing a competitor. Can you just give us a sense, either a mix or just identify some of the wins, whether these were brand-new customers to Synopsys or whether they were re-winning or winning back a customer that had maybe shifted away in the past?

好的。我想我可以從中看出一些線索。接著想追問一下 Fusion 的勝出、競爭性勝出，特別是你們提到有取代競爭對手的那些案例。你們能否讓我們了解一下，無論是組合概況或是點出一些勝出案例：這些是 Synopsys 的全新客戶，還是重新贏回、或贏回過去可能曾經轉向別家的客戶？

The answer is yes, yes and yes, meaning that they fall in all categories. In the past, it has been relatively rare that there would be brand-new customers because the semiconductor industry was relatively stable and actually partially consolidating. That has changed substantially in 2 ways: one is a number of the hyperscalers are becoming interestingly -- strongly interested in doing chip design; and secondly, there's a plethora of IP companies that are doing extremely advanced design on an extremely aggressive time scale. And for those, the utilization of our tools is just imperative to be able to succeed. So we have opportunities in all fronts. And the bottom line is we have to continue to push hard on the technology. But right now, it's very, very strong.

答案是：是、是、也是，也就是說三種情況都有。過去出現全新客戶相對少見，因為半導體產業相對穩定，而且某種程度上還在整併。這在兩個方面有了很大改變：第一，一些超大規模業者（hyperscalers）開始非常——強烈地——對做晶片設計感興趣；第二，有大量的 IP 公司正在以極具侵略性的時程做非常先進的設計。對於這些公司而言，要能成功，我們工具的使用是不可或缺的。所以我們在各個面向都有機會。而重點是我們必須持續在技術上大力推進。但就目前而言，態勢非常、非常強勁。

We'll go to Adam Gonzalez with Bank of America Securities.

接著我們請 Bank of America Securities 的 Adam Gonzalez。

First, I just wanted to ask about the China market, and can you just discuss trends there, excluding Huawei and how you see that market moving forward? And then if you see any potential impact from the proposed changes to the regulatory outlook, whether that's changed to the de minimis rule or the foreign direct product rule.

首先我想問中國市場，你們能否談談那裡的趨勢（不含華為），以及你們如何看待該市場接下來的走向？另外，關於監管前景擬議的變更，你們是否看到任何潛在影響，例如對 de minimis 規則或外國直接產品規則（foreign direct product rule）的修改？

Sure. Well, if you take away the entity list, then I would say no change, meaning that China continues to be very active, moving forward at a rapid pace, adopting new technologies and our business is strong. Regarding the entity list, we had assumed and somewhat predicted that there would be no radical change in the near future. So far, that has turned out to be true. But as we all know, things can happen in unexpected ways depending on how the tensions between the countries evolve. We do not expect that any part of the specific rules would have major impact on changes in our business because bottom line is to the entity list, we are not shipping. So that is sort of an all-or-nothing type situation already today.

當然。嗯，如果把實體清單的因素拿掉，那我會說沒有變化，也就是中國仍然非常活躍，以很快的速度向前推進、採用新技術，而我們的業務表現強勁。至於實體清單，我們原先假設、也某種程度上預測短期內不會有激烈的變化。到目前為止，這個判斷看起來是對的。但如大家所知，事情可能會以意想不到的方式發展，取決於國與國之間緊張關係如何演變。我們不預期任何特定規則的部分會對我們業務的變化造成重大影響，因為歸根結底，對於實體清單，我們本來就不出貨。所以那在今天就已經是一種「全有或全無」的情況。

Great. And Trac, just wanted to follow up on the second half revenue outlook. Can you maybe give a little more detail about what your expectations are for a split between Q3 and Q4? And then I think on the prior call, for the SIG business, you had outlined that you expect to ramp up spending this year such that margins would stay relatively flat throughout the year. Is that still the goal?

很好。另外，Trac，我想跟進一下關於下半年營收展望的問題。你能否再多提供一些細節，說明你們對 Q3 與 Q4 之間分配的預期？然後我記得在上一通電話會議中，針對 SIG 業務，你們曾提到預期今年會逐步提高支出，使得全年利潤率大致維持相對持平。這仍然是目標嗎？

Yes. That's still the goal. So the -- let me start with the first question, this first half, second half. We do expect Q4 to be our directionally the largest quarter for revenues and EPS. That's consistent with the guidance. With regards to SIG, we do expect the hiring ramp to continue throughout the year, and that's reflected in the 200 basis point improvement. But quarter-to-quarter, you can get a little noisy but generally flattish with last year.

是的。那仍然是目標。所以——讓我先從第一個問題開始，也就是上半年、下半年的部分。我們確實預期 Q4 在營收與 EPS 方面方向性上會是最大的季度。這與我們的指引一致。至於 SIG，我們確實預期招募擴張會在全年持續進行，而這也反映在 200 個基點的改善上。不過就季度對季度而言，可能會有些雜訊，但整體而言與去年相比大致持平。

And we'll go next to John Pitzer with Crédit Suisse.

接下來我們請 Crédit Suisse 的 John Pitzer 提問。

Aart, my first question, the word North American CPU guy where you found historically a pretty good position seems to be going to kind of a fundamental change, and they've been buying philosophy over the next couple of years, where we're going to move away from doing everything, their own IP to maybe using some more off-the-shelf block IPs within their design. I'm kind of curious, what are the puts and the takes or the opportunities that, that might create for you or the EDA space?

Aart，我的第一個問題是，那位北美的 CPU 大廠，你們過去似乎在那裡一直處於相當不錯的位置；但看起來他們正要進行某種根本性的改變，未來幾年他們的採購理念將轉變，從過去什麼都自己做、使用自有 IP，轉向在其設計中更多採用一些現成的模組化 IP。我有點好奇，這可能會為你們或整個 EDA 領域帶來哪些取捨或機會？

John, my apologies but we sort of understood every second word. And so we sort of made out the words IP and the word trend, I think. I apologize. Is it possible to try to summarize just sort of the 3 or 4 words that are most interested to you, and I'll try to fabricate a response to that?

John，很抱歉，但我們大概只能聽懂你每隔一個字。所以我們大概只聽到了 IP 這個詞，以及我想還有「趨勢」這個詞。很抱歉。你能否試著用大概 3 到 4 個你最關心的關鍵字來總結一下，我會試著據此組織一個回覆？

Does this sound better?

這樣聽起來有比較好嗎？

Yes. There's sort of this wobbling sound as if you were underwater.

有。但有種搖晃的聲音，好像你在水底下講話一樣。

Yes, I apologize. I'm on a cellphone. Is this any better or not?

是的，抱歉。我在用手機。這樣有比較好嗎，還是沒有？

Marginally so. Did I get the word IP correctly?

稍微好一點。我剛剛有聽到 IP 這個詞，對嗎？

Yes. The question is that the large North American CPU guy is moving to kind of a different design philosophy methodology, where they're going to be using less of their own kind of internal IP design or off-the-shelf blocks. I'm kind of curious as to what that means for you or the EDA space?

對。問題是，那家北美的大型 CPU 廠正在轉向一種不同的設計理念／方法論，他們將較少使用自家內部的 IP 設計，而更多採用現成的模組化區塊。我想了解這對你們或 EDA 領域意味著什麼？

I think I understand the question. I'll try to reask it a little bit, which is essentially of the North American CPU guys, are they changing their design methodology to use more reusable IP? Well, I want to broaden the question slightly because answering for -- there are not that many North American CPU guys, and it's not appropriate for me to answer in a fashion that recognizes the customers.

我想我理解這個問題。我試著把問題再問得更精準一點：本質上是，北美的 CPU 廠商是否正在改變其設計方法論，以使用更多可重複使用的 IP？不過我想把問題稍微擴大一些，因為——北美的 CPU 廠商其實不多，而我不適合用會讓人辨識出客戶身分的方式來回答。

But what I can say in general is there's no question that around CPU design, and I'll include in that GPU and all the views that are specialized for AI, the design methodology is definitely evolving. There's certainly some people that continue the old way to massively optimize for the last gigahertz, but for a majority, there's definitely a drift towards applications that use much more data so that tend to be more a machine learning-oriented. And with that comes architectures that are very much focused on getting data in and off chip.

但我可以概括地說，毫無疑問，在 CPU 設計周邊——我也把 GPU 以及所有針對 AI 的專用變體都算進來——設計方法論確實正在演進。當然也有人仍沿用舊方式，為了最後那一點點 GHz 進行極致最佳化；但對大多數人而言，確實正逐步轉向使用更多資料的應用，因此更偏向機器學習導向。而隨之而來的是，架構會非常聚焦於如何把資料送進晶片、以及把資料從晶片送出。

And so that in itself brings about a natural increase of potentially reasonable IP. And yes, I think the quality of the IP, the advanced nature, meaning the advanced nodes that our IP is available today and the close collaboration we have with all of these customers has made it possible that they're now counting for design methodologies that use substantially more IP than they did in the past. We expect that to continue, and we also expect to continue that the IP will become more complex because with the smaller nodes, it really takes a lot of effort to make them work very well. But it is now absolutely a distinguishing capability of the company.

因此，這本身就自然帶來了對「可合理採用的 IP」的潛在需求提升。而且是的，我認為 IP 的品質、其先進性——也就是我們的 IP 目前可支援的先進製程節點——以及我們與所有這些客戶的緊密合作，使得他們現在在設計方法論上，確實比過去更大量地採用 IP。我們預期這個趨勢會持續，同時也預期 IP 會變得更複雜，因為在更小的節點上，要讓它們運作得非常好確實需要大量投入。但這如今已經絕對是公司的一項差異化能力。

So essentially, what I'm trying to express to you is the IP business is difficult, but it is a great business for us to be in because it will continue to grow. It will continue to be demanding and therefore, a good area for us to be in. And we have long-term relationships with these customers where they acquire more and more pieces from us.

所以我想對你表達的是：IP 業務很難做，但對我們而言是一門很好的生意，因為它會持續成長。它也會持續具有高要求，因此是我們適合深耕的領域。而且我們與這些客戶有長期關係，他們會向我們採購越來越多的組件。

That's helpful. As my follow-up, Trac, you said there was no impact from the coronavirus on the full fiscal year and that's understandable. Is there any cushion that you're embedding in the current quarter guidance? And to the extent that Software Integrity is not a part of the op margin expansion during this year, how do we think about that business going into 2021? And kind of at what leverage levels would you expect there to be a significant inflection in op margin for that business?

這很有幫助。我的追問是，Trac，你說冠狀病毒對整個會計年度沒有影響，這可以理解。那你們在本季指引中是否有內含任何緩衝？另外，若 Software Integrity 並不是今年營業利益率擴張的一部分，我們該如何看待該業務在 2021 年的走勢？以及大概在什麼樣的槓桿水準下，你會預期該業務的營業利益率會出現顯著的拐點？

So. So the question is -- the first question is related to Q2. Our -- my comment on the coronavirus to the numbers is consistent with Q2 and the full year, it's not meaningful. This is our best outlook for the year and I think it's pretty consistent with how we've been planning the year. With regards to SIG margins, we should be improving margins in FY '21, and that's going to be a combination of us growing that business and continuing to scale that up and be more productive with the investments.

所以。所以問題是——第一個問題與 Q2 有關。我關於冠狀病毒對數字影響的評論，對 Q2 與全年都是一致的：影響不具重大性。這是我們對今年最好的展望，我認為也與我們規劃今年的方式相當一致。至於 SIG 的利潤率，我們在 2021 財年應該會改善利潤率，這將結合我們推動該業務成長、持續擴大規模，以及讓投資更具生產力。

And our next question from the line of Jay Vleeschhouwer with Griffin Securities.

下一個問題來自 Griffin Securities 的 Jay Vleeschhouwer。

Aart, for you first. In your answer just now to a question regarding the evolution of design methodologies, you put it largely in the context of the role or adoption of IT. Could you also speak to that in terms of core EDA and in terms of how customers are differentiating themselves vis-à-vis design process and the employment of the tools? I'm sure this has been the case since the primordial days of EDA 3 decades ago. And -- but when you look at the multiple applications and needs that you talk about, in what way do you think core EDA design flows, processes, methodologies are evolving or need to evolve for customers to continue to distinguish themselves aside from your incorporation of standard IP?

Aart，先問你。你剛才在回答關於設計方法論演進的問題時，主要是放在 IP 的角色或採用上。你也能否從核心 EDA 的角度談談：客戶在設計流程以及工具使用上，是如何彼此差異化的？我相信這種情況自 30 年前 EDA 的遠古時代起就一直存在。但是——當你看你所談到的多種應用與需求時，你認為核心 EDA 的設計流程、程序、方法論正如何演進，或需要如何演進，才能讓客戶在你們納入標準 IP 之外，仍能持續形成差異化？

For you, Trac, with regard to IT. In fiscal '19, according to the 10-K, there was a $235 million positive impact from upfront IT revenue although total IT revenues increased by just over $100 million. How are you thinking about those wonderful 606 mechanics in 2020 with regard to the tough comp you would have on IT upfront revenue versus perhaps a somewhat easier comp on IT subs revenue?

Trac，關於 IT（IP）。在 2019 財年，根據 10-K，來自一次性（upfront）IP 收入的正面影響為 2.35 億美元，儘管 IP 總收入僅增加略高於 1 億美元。你如何看待 2020 年在這些「美妙的」606 會計處理機制下：相較於 IP 一次性收入會面臨較艱難的比較基期，而 IP 訂閱（subs）收入可能有較容易的比較基期？

Okay. Let me start. Of course, your question can lead to 0.5 hour dissertation, which I will not do. But the first thing to start with is that there's still a continuation of adoption of extremely advanced nodes, and with that comes a nonstop demand for all of our tools, all the ones reaching deep into the physics and certainly all the physical design tools to be up to speed with these nodes. And by the way, their development is less clearly defined in time, meaning that a new node comes out, and then within 3 months, there's another version of that node and another -- [3] months, another version. And so there's constant adaptation as people are really squeezing out the max.

好的。我先開始。當然，你的問題可以引出半小時的長篇論述，我不會那樣做。但首先要談的是，對於極先進製程節點的採用仍在持續，而隨之而來的是對我們所有工具不間斷的需求——包括那些深入到物理層面的工具，當然也包括所有實體設計工具——都必須跟上這些節點的進展。順帶一提，這些節點的開發在時間上變得不那麼明確：也就是說，一個新節點推出後，三個月內又會有該節點的另一個版本，再過[3]個月又有另一個版本。因此大家一直在不斷調整，因為人們真的在把效能榨到極致。

Now in parallel to that, maybe less relevant but still worthwhile to note is that some of the older nodes are also being put more to use as people figure out that was the new tools, they can squeeze out more value out of those nodes and not all the products need the most advanced capabilities.

與此同時，另一個趨勢可能相關性較低但仍值得一提：一些較舊的節點也正在被更廣泛地使用，因為人們發現，藉由新工具，他們可以從那些節點中榨出更多價值，而且並非所有產品都需要最先進的能力。

Having said that, on the advanced capabilities, if there are 2 or 3 trends I could highlight for the tools, one is this notion that the capacity of the tools needs to continue to increase, because on Moore's Law, the 1 factor that really has not slowed down is the notion of increased density. Still more transistors per chip and that adds a lot of value for what you can do. In order to do that, we need to make sure that our tools interact well with each other. And so the notion of Fusion is really profound because it attempts to have every tool understand somewhat what the other tools will do and essentially have better team play, so to speak.

話雖如此，就先進能力而言，如果要我點出工具方面的兩三個趨勢，其中之一是工具的容量必須持續提升，因為在摩爾定律中，真正沒有放緩的一個因素就是密度持續增加的概念。每顆晶片仍然能塞進更多電晶體，而這會為你能做的事情帶來很大價值。為了做到這點，我們需要確保各個工具之間能良好互動。因此，「Fusion（融合）」這個概念非常深刻，因為它試圖讓每個工具多少能理解其他工具會做什麼，基本上讓它們能更好地協同作戰。

What comes on top of that is that now the application of AI is absolutely deeply anchored already in our business. And we have capabilities in every one of our tools that are impacted by improvements through AI and increasingly, [we'll see] capabilities between the tools. The last comment I'll make is in the verification space, where a trend that we had diagnosed early on continues at high speed, which is with the strengthening of the chips and the combinations of chips, and I'm looking here at things that are assembled in a 3D fashion of multiple chips talking to each other such as processors and memories and maybe sensors, the importance of being able to verify both the hardware and the software at the same time continues to grow because whichever is the slowest or the worst of in quality will determine when something goes to market. And so that is the area where advanced stimulation techniques, emulation, prototyping play in. So those are sort of the forces that govern what we do. And I can bet that by next week, there will be yet another demand for something to keep going because there is no deceleration in sight.

在此之上，AI 的應用如今已經非常深度地扎根在我們的業務之中。我們每一個工具都具備會受到 AI 改善所影響的能力，而且未來也會越來越多地看到工具與工具之間的能力整合。我最後要提的是驗證領域：我們很早就判斷出的一個趨勢仍在高速延續——隨著晶片本身以及晶片組合的強化（我指的是以 3D 方式組裝的多顆晶片彼此互通，例如處理器、記憶體，可能還有感測器），同時驗證硬體與軟體的重要性持續提升，因為不論哪一個最慢或品質最差，都會決定產品何時能上市。因此，先進的刺激（stimulus）技術、仿真（emulation）、原型（prototyping）就在這裡發揮作用。所以，這些大致就是主導我們所做事情的力量。而我敢打賭，到下週又會出現新的需求要我們繼續前進，因為完全看不到減速的跡象。

So Jay, on your question regarding IP, let me start by saying that we're very positive about our IP business. This is a -- as we described, a low double-digit growth business. And everything we're seeing in the marketplace and our bookings continue to reflect that outlook. That said, the 606 transition does introduce more variability to the numbers on a quarterly basis. But on a full year basis and on a multiyear basis, this is a very good growth business for us as reflected in the guidance for the full year.

所以 Jay，關於你對 IP 的問題，我先說我們對 IP 業務非常正面。這是一個——如我們所描述——低雙位數成長的業務。我們在市場上看到的一切以及我們的接單（bookings）都持續反映這個展望。話雖如此，606（ASC 606）轉換確實會讓季度數字的波動更大。但以全年以及多年期來看，這對我們而言是一個非常好的成長型業務，這也反映在我們對全年指引之中。

Also Trac, could you update us on your backlog number?

另外 Trac，你能更新一下你們的積壓訂單（backlog）數字嗎？

Well, I know you're going to read our Q that's coming out shortly, and you'll see that the backlog is -- it's pretty steady at [$4.4 billion] and directionally up versus last quarter. And then within that, the run rate that we -- the business that we book was actually very positive.

嗯，我知道你們很快就會讀到我們即將發布的 Q（問答/稿件），你會看到積壓訂單——相當穩定，約為[44 億美元]，方向上較上季略有上升。而在這之中，我們的 run rate——也就是我們所簽下的業務——其實非常正面。

And our next question from the line of Jason Celino with KeyBanc Capital Markets.

下一個提問來自 KeyBanc Capital Markets 的 Jason Celino。

The acquisition of Tinfoil fills a nice hole in the dynamic testing side for your SIG portfolio. Can you talk about how that acquisition came about? And maybe any other small holes your current offering has?

收購 Tinfoil 在你們 SIG 產品組合的動態測試面向補上了一個很好的缺口。你能談談這筆收購是如何促成的嗎？以及你們目前的產品供給還有哪些小缺口？

It is a very nice acquisition. And in these new markets, everybody knows everybody. And so then the question is always, are there some acquisitions that are both timely, that are economically reasonable and where we can integrate rapidly in a broader solution? And of course, we have had experience in this EDA business for many really decades. And so there's some similarity in that. And what was particularly intriguing is that Tinfoil fits so nicely in the Polaris platform. Of course, we have to do the integration. But this is exactly the type of capabilities that we'd love to have there because it makes the platform more useful, more versatile for our customers as they adopt it, and it was designed to make these type of integrations possible and not too costly.

這確實是一筆非常好的收購。在這些新市場裡，大家彼此都認識。所以問題總是：是否存在一些收購機會，既時機恰當、經濟上合理，又能讓我們快速整合到更廣泛的解決方案中？當然，我們在 EDA 業務上已經有數十年的經驗。因此在這方面有一些相似性。特別吸引人的是，Tinfoil 與 Polaris 平台的契合度非常高。當然，我們必須完成整合。但這正是我們希望平台具備的能力類型，因為它能讓平台在客戶採用時更有用、更具彈性；而且這個平台本來就是為了讓這類整合成為可能、且成本不至於太高而設計的。

So if I add to that, the fact that Tinfoil is truly remarkable, high-quality company with some stunning individuals in terms of their ability to look at the future. We -- and by the way, the locals that makes it easier to integrate. So far, it looks really promising.

我再補充一點：Tinfoil 真的是一家非常出色、高品質的公司，他們有一些非常令人驚豔的人才，特別是在前瞻未來的能力上。我們——順帶一提，地緣上的接近也讓整合更容易。到目前為止，看起來非常有希望。

Okay. And then similar topic, the acquisition of the IP assets over the last few months. How should we think about those as far as complementary to the growth opportunity in IP or kind of the margin expansion opportunity in IP?

好的。那類似的話題，過去幾個月你們收購了一些 IP 資產。我們應該如何看待這些收購：它們是用來補強 IP 的成長機會，還是更偏向 IP 的毛利率擴張機會？

Very good question. So our IP business is really 2 components: one is to continually drive both the breadth but I would say just as much the depth of what we do in IP. And depths would be the new technologies new versions of the technology, et cetera. But the other part is that actually, IP does require quite a bit of work. They are very often statement of works on delivering IP that fits exactly the needs of a customer, so maybe some small variations or some tuning for a specific technology. And so continuing to grow a workforce that can do this is just part of continuing to scale it overall. And so in both the cases of INVECAS and eSilicon was a combination of some technologies, and -- but most importantly, also a workforce that was very well suited for the type of needs that we have. So we see it as essentially just another way of continuing to broaden and grow our business.

非常好的問題。我們的 IP 業務其實有兩個組成部分：其一是持續推動 IP 的廣度——但我會說同樣重要的是深度。而深度指的是新技術、技術的新版本等等。但另一部分是，IP 其實需要相當多的工作量。很多時候，交付 IP 會以工作說明書（statement of work）的形式進行，必須完全符合客戶的需求，例如一些小幅變更或針對特定技術做調校。因此，持續擴充能做這些工作的團隊人力，是整體規模化的一部分。所以，無論是 INVECAS 或 eSilicon 的案例，都是技術的一部分組合——但更重要的是，也帶來非常適合我們需求的人才隊伍。因此我們把它視為持續擴大並成長我們業務的另一種方式。

(Operator Instructions)

（接線員指示）

We'll go next to Krish Sankar with Cowen & Company.

接下來是 Cowen & Company 的 Krish Sankar。

I had 2 of them. First 1 for Aart. Aart, if you look at it, like high-performance computing over the last several years has swung from being centralized cloud and now it's more distributed towards the edge. Kind of curious, how does this change the EDA landscape, if at all? Did requirements for EDA change at the edge? I'm just curious on that, and then I had a follow-up for Trac.

我有兩個問題。第一個問 Aart。Aart，如果你回顧過去幾年，高效能運算從集中式雲端擺盪到現在更分散、走向邊緣端。我有點好奇，這是否會改變 EDA 的版圖？在邊緣端，對 EDA 的需求有改變嗎？我只是想了解這點，然後我還有一個要問 Trac 的追問。

Well, most of the super high-performance computing is reasonably centralized. But it is true that a number of the edge application, if you call a car an edge, there's a lot of computation that's going into that. And so I would say in general, the difference of design is not that marked unless you have 2 things that changed: one is the need for low power, i.e., battery-operated type things. And so there, you have the never-ending challenge of how much performance can you squeeze out without draining the battery in no time. And that's not a new problem. It really started to come up when mobility came up in the early 2000s. But the other thing is that in a number of edge applications now, these computational devices can be used in machines that can actually be lethal. And a car is definitely potentially lethal but so could be a robot or so.

嗯，大多數超高效能運算在相當程度上是集中式的。但確實有不少邊緣應用——如果你把汽車也算作邊緣——其中有大量運算在進行。所以我會說，一般而言，除非有兩件事改變，否則設計上的差異並不那麼明顯：第一是低功耗的需求，也就是電池供電這類裝置。在那裡，你會面臨永無止境的挑戰：如何在不讓電池很快耗盡的情況下，榨出更多效能。而這並不是新問題。它其實在 2000 年代初期行動性興起時就開始浮現。但另一件事是，現在在不少邊緣應用中，這些運算裝置可能會被用在實際上具有致命性的機器上。汽車當然具有潛在致命性，但機器人也可能如此。

And so with that comes a whole set of other rules that one have to serve in the design of the chips such as having the capability for a chip to diagnose itself as faulty, and in some cases, to diagnose itself and at least temporarily repair itself by having, for example, duplication of some capabilities. Now it took us a while to catch up on all those rules because many of those rules are very old. They come from the automotive industry. But now, and I think we highlighted maybe in the script on automotive, Synopsys is really well on top of this. And so much so that we now participate in the (inaudible) where the next set of rules are being developed and pioneered.

因此，隨之而來的是一整套在晶片設計上必須遵循的其他規範，例如晶片必須具備自我診斷故障的能力，並且在某些情況下，能夠自我診斷並至少暫時自我修復，例如透過複製某些功能來達成。我們花了一些時間才跟上所有這些規範，因為其中許多規範其實非常古老。它們源自汽車產業。但現在，我想我們可能在汽車那段腳本裡也有強調，Synopsys 在這方面已經掌握得非常到位。以至於我們現在也參與（聽不清）——也就是下一套規範正在被制定與開創的地方。

So those are sort of the differences. But for the rest, it's like it's never good enough, it's never fast enough. It's never low-power enough. That continues. And while these sound like negative words, they're music to our years. A lot more opportunity for us.

所以這些算是差異所在。但除此之外，就像永遠不夠好、永遠不夠快。永遠不夠低功耗。這些都會持續下去。而雖然這些聽起來像是負面的字眼，對我們而言卻是悅耳的音樂。對我們來說有更多的機會。

Got it. That's very helpful, Aart. And then a quick follow-up for Trac. It looks like your fiscal '20 revenue guide is largely unexpected because of the virus. I understand the stability of your revenue stream, but I would have thought that there would have been some impact on the hardware innovation business, given that's a little more variable. Kind of curious, are you not seeing any of that impact in hardware or emulation?

了解。這非常有幫助，Aart。接著給 Trac 一個快速追問。看起來你們 2020 會計年度的營收指引很大程度上是因為病毒而出乎意料。我理解你們營收來源的穩定性，但我原本以為硬體創新業務會受到一些影響，因為那部分波動性更大一些。有點好奇，你們在硬體或仿真（emulation）方面沒有看到任何影響嗎？

Well, our guidance reflects the best information we have right now, and the demand from our customers continues to be very strong. I think part of it is that it's going to be -- the variability is going to be mostly on the timing of it, but that's contemplated in the guidance. As far as growth goes, keep in mind every year, we look at the year and we say that it's going to be hard to grow off of a record year, which is what we had in 2019. But we feel very good about where we are and the pipeline that we've got in place.

嗯，我們的指引反映了我們目前掌握的最佳資訊，而客戶需求仍然非常強勁。我想其中一部分是——變動性主要會體現在時點上，但這已經在指引中有所考量。就成長而言，請記住每一年我們看這一年時都會說，在創下紀錄的一年之後要再成長會很難，而 2019 年就是那樣的紀錄年。但我們對目前的狀況以及已建立的案源（pipeline）感到非常有信心。

We have a question from the line of Josh Tilton with Berenberg Capital Markets.

我們有一個問題，來自 Berenberg Capital Markets 的 Josh Tilton。

First, on Software Integrity, just how many months are left on the total Polaris rollout? What key functionality remains to be integrated? And should we expect a step-up in margins once the platform is fully rolled out?

首先，關於 Software Integrity，整體 Polaris 的導入（rollout）還剩下多少個月？還有哪些關鍵功能尚待整合？以及當平台完全導入後，我們是否應該預期毛利率會有一個台階式的提升？

Maybe it's strange thing to answer, but that rollout will continue, hopefully, for a long, long time, meaning, many years. The reason being that the basic capabilities of Polaris as a platform are there. Now the question is, how well do we integrate multiple applications? And the power of a platform is precisely because it handles multiple applications in a way that makes life much easier for the user instead of having to deal with different products that may have different interfaces, data representations, et cetera, et cetera.

也許這樣回答有點奇怪，但那個導入會持續下去，希望能持續很久很久，也就是很多年。原因在於，Polaris 作為平台的基本能力已經具備。現在的問題是，我們如何把多個應用整合得更好？而平台的威力正是因為它能以一種讓使用者更輕鬆的方式處理多個應用，而不是必須面對不同產品可能有不同介面、資料呈現方式等等、等等。

So what is encouraging is that we now have already multiple capabilities on there. And you may realize that, I mentioned that the Tinfoil acquisition is slated to be integrated next. And so that's a good way to think about it. Hopefully, we can do many more things. Now the platform itself will continue to evolve. They all do and it's hard for me to say what's the life cycle for a platform in this area, which is still new to us. But if you look at sort of EDA, our platforms typically have lasted somewhere between 10 to 15 years.

令人鼓舞的是，我們現在上面已經有多項能力。而你可能也注意到，我提到 Tinfoil 的收購預計會是下一個要整合進來的。所以可以用這種方式來理解。希望我們還能做更多事情。當然，平台本身也會持續演進。所有平台都是如此，而在這個對我們仍屬新領域的範疇裡，我很難說平台的生命週期會是多久。但如果你看看像 EDA 這類，我們的平台通常能維持大約 10 到 15 年。

And (inaudible) helped drive margin expansion over time as we ramp up on the platform. But it's going to come across from a variety of things, both revenue growth, operating efficiencies and then getting the benefit of the platform.

而（聽不清）也有助於隨著我們在平台上的擴張，逐步推動利潤率擴張。但這會來自多種因素，包括營收成長、營運效率，以及取得平台帶來的效益。

That was helpful. And then just following up on Fusion Compiler. Has it been going up head-to-head specifically against Cadence's full digital flow? And if so, how have the win rates been there?

這很有幫助。接著追問 Fusion Compiler。它是否曾經特別與 Cadence 的完整數位流程正面交鋒？如果是的話，那邊的贏單率表現如何？

Well, we really have mostly 1 competitor in that area and it's a very worthy competitor. So yes, we compete all the time against Cadence. Let me just leave it at the fact that, I think right now, we have a very, very strong capability.

嗯，我們在那個領域基本上只有 1 個競爭對手，而且是非常值得尊敬的競爭對手。所以是的，我們一直都在和 Cadence 競爭。我就先說到這裡：我認為目前我們擁有非常、非常強的能力。

I'll turn it back over to our speakers.

我把時間交回給我們的講者。

Well, with that, thank you for all the questions, and again, thank you for your support. We had a strong quarter. We have a whole rest of the year to go, as you know, and we look forward to talking to you again in the quarter. Be aware that for some of you, we are also available later on after the call.

那麼，感謝大家所有的提問，也再次感謝各位的支持。我們這一季表現強勁。如各位所知，今年還有整整一段時間要走，我們也期待在下一季再與各位交流。也請注意，對於其中一些人，我們在會後稍晚也仍可提供聯繫。

Thank you. And ladies and gentlemen, this will conclude our teleconference for today. We thank you for your participation and for using AT&T Conferencing Service, and you may now disconnect.

謝謝。各位女士先生，今天的電話會議到此結束。感謝各位的參與，並感謝使用 AT&T 會議服務，您現在可以掛線。