希捷科技 (STX) 2023 Q3 法說會逐字稿

Welcome to the Seagate Technologies Fiscal Third Quarter 2023 Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Shanye Hudson of Investor Relations. Please go ahead.

歡迎參加希捷科技2023財年第三季電話會議。 （操作員指示）請注意，本次會議正在錄製中。現在，我想將會議交給投資者關係部的Shanye Hudson。請繼續。

Thank you. Hello, everyone, and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer; and Gianluca Romano, our Chief Financial Officer. We posted our earnings press release and detailed supplemental information for our fiscal third quarter 2023 results on the investors section of our website.

謝謝。大家好，歡迎參加今天的電話會議。與我一起參加電話會議的還有希捷執行長 Dave Mosley 和財務長詹盧卡羅馬諾 (Gianluca Romano)。我們在網站的投資者專區發布了收益新聞稿以及 2023 財年第三季業績的詳細補充資訊。

During today's call, we'll refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and included in our Form 8-K that was filed with the SEC. We've not reconciled certain non-GAAP outlook measures because material items that may impact these measures are out of our control and/or cannot be reasonably predicted. Therefore, a reconciliation to the corresponding GAAP measures is not available without unreasonable efforts.

在今天的電話會議上，我們將討論 GAAP 和非 GAAP 指標。非 GAAP 數據已與我們網站上發布的收益新聞稿中的 GAAP 數據進行了調節，並包含在我們提交給美國證券交易委員會 (SEC) 的 8-K 表格中。我們尚未調整某些非 GAAP 展望指標，因為可能影響這些指標的重大事項超出了我們的控制範圍和/或無法合理預測。因此，如果不付出不合理的努力，我們將無法獲得與相應 GAAP 指標的調整結果。

Before we begin, I'd like to remind you that today's call contains forward-looking statements that reflect management's current views and assumptions based on information available to us as of today and should not be relied upon as of any subsequent date. Actual results may vary materially from today's statements. Information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are contained in our most recent Form 10-K and 10-Q filed with the SEC, our Form 8-K filed with the SEC today and the supplemental information posted on the Investors section of our website. As always, following our prepared remarks, we'll open the call up for questions.

在開始之前，我想提醒大家，今天的電話會議包含前瞻性陳述，這些陳述反映了管理層基於截至今日所掌握資訊的當前觀點和假設，不應在任何後續日期依賴這些陳述。實際結果可能與今天的陳述有重大差異。有關我們的風險、不確定性和其他可能導致結果與這些前瞻性陳述不同的因素的資訊包含在我們最近向美國證券交易委員會提交的10-K和10-Q表格、我們今天向美國證券交易委員會提交的8-K表格以及我們網站「投資者」板塊發布的補充資訊中。像往常一樣，在準備好的發言之後，我們將開始提問。

With that, I'll now turn it over to you, Dave.

好了，現在我將把話題交給你，戴夫。

Thanks, Shanye, and hello, everyone. Seagate's March quarter revenue came in at $1.86 billion, just above the low end of our guidance range, while we reported a non-GAAP loss of $0.28 per share. These results reflect rising economic uncertainties and an elongated inventory correction that impacted demand among a few large customers late in the quarter. As a result, we've altered our outlook regarding the timing and trajectory of recovery to now begin later in the calendar year.

謝謝，Shanye，大家好。希捷三月季度營收為18.6億美元，略高於我們預期區間的下限，同時我們報告的非公認會計準則每股虧損0.28美元。這些業績反映了經濟不確定性的上升以及庫存調整的持續，這影響了季度末一些大客戶的需求。因此，我們調整了對復甦時間和軌蹟的預期，現在預計復甦將在年底開始。

In response to the current market environment, we are taking aggressive actions to further reduce costs and rightsize the business to navigate this downturn and position Seagate to thrive when recovery ultimately comes. Beyond this cycle, we remain excited about the long-term opportunities presented by the secular growth of data and the relevance of mass capacity storage as new data-centric applications emerge and more workloads migrate to the cloud. We continue to make strong progress on our industry-leading technology road map, including launching HAMR-based products this quarter, which we believe put us in outstanding longer-term position.

為應對當前的市場環境，我們正在採取積極措施，進一步降低成本並優化業務規模，以應對此次低迷，並使希捷在最終復甦時保持蓬勃發展。在此週期之外，隨著新的以資料為中心的應用程式的出現以及更多工作負載遷移到雲端，我們仍然對資料長期增長和大容量儲存的相關性所帶來的長期機會感到興奮。我們繼續在業界領先的技術路線圖上取得強勁進展，包括本季推出基於HAMR的產品，我們相信這將使我們在長期內佔據突出地位。

In my remarks today, I will share some perspectives on the current market dynamics, provide greater context on our restructuring initiatives and update you on our product plans. First, let me address the settlement we announced with the U.S. Department of Commerce, Bureau of Industry and Security, or BIS. The agreement resolves BIS' allegations regarding Seagate's sales of hard disk drives to a certain customer between August 2020 and September 2021. Under the terms of the settlement agreement, Seagate has agreed to pay a total of $300 million in $15 million quarterly installments that will take place over the course of 5 years. I want to emphasize that Seagate maintains its strong commitment to export compliance, and we believe that we comply with all export regulations at the time we made the shipments.

在今天的演講中，我將分享一些關於當前市場動態的觀點，更詳細地介紹我們的重組計劃，並向大家介紹我們的產品計劃。首先，我想談談我們與美國商務部工業和安全局（BIS）宣布的和解協議。該協議解決了BIS關於希捷在2020年8月至2021年9月期間向特定客戶銷售硬碟的指控。根據和解協議的條款，希捷同意在五年內分期支付總計3億美元的款項，每季支付1,500萬美元。我想強調的是，希捷始終堅定地致力於出口合規，我們相信，我們在發貨時就遵守了所有出口法規。

However, in working toward a mutually acceptable solution with BIS, we balance factors such as the risks and cost of protracted litigation involving the U.S. government, the size of a potential penalty, which could have been a significant multiple of the settlement amount, and our desire to focus on current business challenges and our long-term business goals. We believe the outcome we have reached and putting this matter behind us is in the best interest of our customers, shareholders and other stakeholders.

然而，在與BIS努力達成雙方都能接受的解決方案的過程中，我們權衡了諸多因素，例如涉及美國政府的曠日持久訴訟的風險和成本、潛在罰款的數額（該數額可能遠超和解金額），以及我們專注於當前業務挑戰和長期業務目標的意願。我們相信，我們達成的最終結果以及最終解決此事符合我們客戶、股東和其他利害關係人的最佳利益。

Turning now to the near-term business environment. For the past year, Seagate has been navigating a complex market shaped by a few primary factors. Inventory digestion among our large cloud customers that is impacting our nearline business, lower economic activity in China owing to the country's COVID lockdown policy and weakening macro conditions that initially impacted consumer demand and is now affecting all end-markets. These pressures have been compounded recently and weighed on our end of quarter dynamics.

現在談談近期的商業環境。過去一年，希捷一直在應對由幾個主要因素塑造的複雜市場。我們大型雲端客戶的庫存消化正在影響我們的近線業務；中國新冠疫情封鎖政策導致經濟活動減少；以及宏觀環境的疲軟最初影響了消費者需求，現在正影響所有終端市場。這些壓力近期加劇，並對我們季末的業績構成壓力。

In the nearline markets, CIOs are now facing constrained IT hardware budgets, which has raised the bar for projects to get funded and resulted in efforts to optimize existing workloads, both on-prem and in the cloud. In turn, cloud service providers have focused on maximizing utilization of their existing infrastructure rather than deploying new capacity. The combination of these factors dramatically slowed the pace of cloud customer inventory consumption, and led to the pronounced slowdown in cloud and enterprise storage demand that we experienced exiting the March quarter. However, we don't foresee a strategic shift in customer spending patterns or a change to what remains a robust long-term outlook for cloud storage.

在近線市場，資訊長目前面臨IT硬體預算受限的問題，這提高了專案獲得資金的門檻，並促使他們努力優化現有的工作負載，無論是本地還是雲端。反過來，雲端服務供應商專注於最大限度地利用現有基礎設施，而不是部署新的容量。這些因素的結合大大減緩了雲端客戶庫存消耗的速度，並導致我們在3月份季度結束時經歷了雲端和企業儲存需求的顯著放緩。然而，我們預期客戶支出模式不會發生策略轉變，雲端儲存依然強勁的長期前景也不會改變。

Digital transformation trends will continue as enterprises realize significant cost benefits and operational efficiencies by transitioning workloads to the cloud. Industry analysts have observed that once applications and workloads are moved to the cloud, they generally stay there and grow. Digital workloads rely on data, which bodes well for mass capacity storage as the number of new cloud workloads multiply every year.

隨著企業透過將工作負載遷移到雲端，實現顯著的成本優勢和營運效率提升，數位轉型趨勢將持續下去。產業分析師觀察到，一旦應用程式和工作負載遷移到雲端，它們通常會駐留在雲端並持續成長。數位化工作負載依賴數據，隨著每年新增雲端工作負載的數量成倍增長，這對於大容量儲存來說是一個利好。

Within the China markets, customers remain constructive on their end market demand outlook as the economy continues to reopen. However, rising macro uncertainties are pushing timing for recovery to begin later in the calendar year. Despite the pushout, we are seeing some positive demand movement in the consumer and service sectors after COVID lockdown restrictions were lifted. These trends support a digital economy growth that bodes well for China cloud demand as growth in consumer demand has historically led to revenue growth for regional cloud customers.

在中國市場，隨著經濟持續復甦，客戶對終端市場需求前景依然樂觀。然而，日益加劇的宏觀不確定性正在推遲經濟復甦的時機，使其推遲到今年稍後。儘管疫情封鎖限制解除後，我們看到消費和服務業的需求出現了一些正面的改變。這些趨勢支撐了數位經濟的成長，這對中國雲端運算需求來說是一個利好，因為從歷史上看，消費需求的成長通常會帶動區域雲端運算客戶的收入成長。

Within the VIA markets, future demand pickup is based on 2 factors. First, you will recall that several existing VIA projects were delayed during COVID lockdowns. Customers expect these projects to gradually resume as the economy reopens in the coming months, which will consume the existing HDD inventory that was earmarked for these projects. Second, we expect new smart city and smart manufacturing initiatives to build momentum as government funding and enterprise budgets free up and the global economy improves.

在威盛市場，未來需求回升基於兩個因素。首先，您可能還記得，在新冠疫情封鎖期間，一些現有的威盛項目被推遲。客戶預計，隨著未來幾個月經濟復甦，這些項目將逐步恢復，這將消耗原定用於這些項目的現有硬碟庫存。其次，隨著政府資金和企業預算的釋放以及全球經濟的改善，我們預計新的智慧城市和智慧製造計畫將獲得發展動力。

In this dynamic environment, we are continuing to manage what is within our control. In late March, we extended the first phase of our restructuring efforts to adjust our factory headcount to align with lower production volumes, realized efficiencies across various operational support functions and reset our live edge to cloud business plans. We are scaling back new investments in Lyve Cloud as we focus on filling our existing infrastructure. We expect to drive operational and cost synergies across all platforms to accelerate time to profitability while growing the business over the long term.

在這種動態的環境中，我們將繼續管理我們所能管理的事情。 3月下旬，我們延長了重組工作的第一階段，以調整工廠員工人數以適應較低的產量，提高各項營運支援職能的效率，並重新調整了從即時邊緣到雲端的業務計劃。我們正在縮減對Lyve Cloud的新投資，專注於填補現有基礎設施的空缺。我們期望推動所有平台的營運和成本協同效應，以加快獲利能力，並實現業務的長期成長。

Since fiscal Q1, we've taken more than $150 million out of our cost structure, lowered debt by 5% and significantly reduced manufacturing capacity. Given the prevailing market conditions and our reduced near-term demand outlook, we are undertaking the next phase of restructuring actions targeted to yield at least an additional $200 million in annualized savings from both COGS and OpEx as well as implementing temporary cost savings measures, including salary reductions.

自第一財季以來，我們已從成本結構中削減了超過1.5億美元，降低了5%的債務，並大幅削減了產能。鑑於當前的市場狀況以及我們近期需求前景的下降，我們正在採取下一階段的重組措施，目標是在銷售成本和營運支出方面至少額外節省2億美元的年度化成本，並實施包括減薪在內的臨時成本節約措施。

We are taking a programmatic approach focused on 3 key areas: first, we are reassessing the levels of production output and functional support required to meet both near- and long-term business needs. These actions are intended to ensure that supply and demand are appropriately balanced. Second, we are simplifying our product road map to create operational efficiencies. We plan to reduce the number of drive configurations and major capacity node transitions to lower supply chain and manufacturing costs and complexity. We're taking these actions in concert with our customers who can also capture cost benefits from fewer product qualifications. Finally, we will continue prioritizing resources towards higher-return products and end markets, while rationalizing support levels and investments aimed at noncore businesses.

我們正採取程序化的方法，重點放在三個關鍵領域：首先，我們正在重新評估滿足近期和長期業務需求所需的生產產出和功能支援水準。這些措施旨在確保供需達到適當的平衡。其次，我們正在簡化產品路線圖，以提高營運效率。我們計劃減少驅動器配置數量和主要產能節點的轉換，以降低供應鏈和製造成本及複雜性。我們正與客戶協同採取這些措施，他們也能從更少的產品認證中獲得成本效益。最後，我們將繼續優先將資源投入到回報較高的產品和終端市場，同時合理化針對非核心業務的支援水準和投資。

Our goal is to emerge a stronger, more agile company able to navigate well in all demand environments, return to profitable growth and preserve our technology leadership momentum. To that end, we have not let up on executing our HAMR-based product road map to preserve our significant time-to-market advantage. We are tracking well to our stated plans and achieved the key milestone last week of shipping initial qualification units to a cloud launch partner, and we expect to recognize initial revenue from 30-plus terabyte platforms this quarter as part of our Corvault system solutions.

我們的目標是成為一家更強大、更敏捷的公司，能夠在所有需求環境中順利前行，恢復獲利成長，並保持技術領先地位。為此，我們始終堅持執行基於HAMR的產品路線圖，以保持顯著的上市時間優勢。我們正在順利執行既定計劃，並在上週實現了關鍵里程碑，向雲端發布合作夥伴交付了首批合格產品。我們預計本季將實現Corvault系統解決方案中30多TB平台的初始營收。

The decades of development that have led us to HAMR productization are even more important today as highly cost-efficient, mass capacity storage will be a competitive enabler in a world where data is rapidly growing and increasing in value. We believe HAMR will further extend the large and sustainable cost advantage multiple compared to other storage media, even with current market prices. Additionally, Seagate's ability to service this growing demand through areal density gains by increasing capacities from 3 to 4 to 5 terabytes per disc or more provides far greater capital efficiencies compared with current PMR technology over time.

數十年來，我們致力於將 HAMR 產品化，而如今，這股熱潮尤其重要，因為在資料快速成長、價值不斷提升的時代，高性價比、大容量儲存將成為重要的競爭優勢。我們相信，即使在當前市場價格下，HAMR 相比其他儲存介質，仍將進一步擴大其巨大且可持續的成本優勢。此外，希捷能夠透過提升面密度來滿足日益增長的需求，將單碟容量從 3TB 提升到 4TB、5TB 甚至更高，這將帶來遠超現有 PMR 技術的資本效率。

We are confident in Seagate's ability to translate areal density leadership into the most advantaged TCO across a broad range of customers from the highest capacity drives used in cloud data centers to lower and mid-cap drives more typically used by enterprise and VIA customers. We currently expect the high-volume ramp to begin in early calendar 2024, depending on customer qualification time lines and prevailing macro conditions at that time.

我們相信，希捷能夠將領先的儲存密度轉化為最具優勢的總體擁有成本 (TCO)，服務於廣泛客戶群，從雲端資料中心使用的最高容量硬碟，到企業和威盛客戶常用的中低容量硬碟。我們目前預計，大規模量產將於 2024 年初開始，具體時間取決於客戶認證時間表和當時的宏觀經濟狀況。

Tactically, we are very focused on realizing our targeted savings which, along with an improved demand environment, should create the foundation to move towards our targeted financial model. And as we transition to our strategically vital HAMR platform, we believe that we are positioning the company to drive differentiated financial performance for Seagate over the long term.

從戰術上講，我們非常注重實現成本節約目標，再加上需求環境的改善，這些都將為我們邁向目標財務模型奠定基礎。隨著我們向具有戰略意義的HAMR平台轉型，我們相信，我們正在為希捷長期實現差異化財務表現奠定基礎。

Thanks. And now I'll turn the call over to Gianluca.

謝謝。現在我將把電話轉給詹盧卡。

Thank you, Dave. Amid intensifying economic uncertainties, we saw a rapid decline in demand in certain parts of the business over the last couple of weeks of the quarter, pressuring supply-demand balance. These factors, along with underutilization charges and tax expenses weighed unfavorably on profitability.

謝謝，戴夫。在經濟不確定性加劇的背景下，本季最後幾週，我們某些業務領域的需求迅速下降，給供需平衡帶來了壓力。這些因素，加上產能利用率不足的費用和稅費，對獲利能力造成了不利影響。

For the March quarter, we reported revenue of $1.86 billion and non-GAAP losses of $0.28 per share. Despite these conditions, we generated free cash flow of $174 million, demonstrating our ability to maintain discipline and strong cost control measures. In response to the near-term business environment, we have and we will continue to evaluate and take steps to improve our cost structure and strengthen our balance sheet as evidenced by the expansion of our restructuring efforts, which we announced in the late March.

3月當季，我們報告營收18.6億美元，非公認會計準則每股虧損0.28美元。儘管如此，我們仍實現了1.74億美元的自由現金流，證明了我們能夠保持紀律並採取強有力的成本控制措施。為了因應近期的業務環境，我們已經並將繼續評估並採取措施，改善成本結構，增強資產負債表，這體現在我們於3月底宣布的重組措施的擴大。

Exiting the June quarter, the actions that we committed to and taking charges for are expected to deliver cost savings of $40 million to $45 million annually, with roughly 60% realized in cost of goods sold. As Dave described in his comments, we are taking additional actions to further improve our cost structure, targeting at least $200 million of annualized savings exiting fiscal Q1 2024.

截至二月季度，我們承諾並已承擔費用的措施預計將帶來每年4000萬至4500萬美元的成本節約，其中約60%體現在銷售成本中。正如Dave在其評論中所述，我們正在採取更多措施進一步改善成本結構，目標是在2024財年第一季結束時實現至少2億美元的年度化成本節約。

Now turning to the end markets. Total hard disk drive revenue declined 4% sequentially to $1.6 billion. Mass capacity revenue remained essentially flat quarter-over-quarter at $1.2 billion, but lower than our expectations due to more prolonged cloud customer inventory adjustment and slower demand recovery in China. Shipments into the mass capacity market totaled 104 exabytes compared with 97 exabytes in the December quarter. Consistent with the prior quarter, roughly 83% were derived from nearline products shipped into cloud and enterprise OEM customers.

現在轉向終端市場。硬碟總收入季減4%，至16億美元。大容量驅動器收入環比基本持平，為12億美元，但由於雲端客戶庫存調整時間延長以及中國需求復甦放緩，低於我們的預期。大容量驅動器市場出貨量總計104EB，而12月季為97EB。與上一季持平，約83%來自近線產品，這些產品交付給雲端客戶和企業OEM客戶。

Nearline shipments of 87 exabytes were up 9% sequentially, driven by growth in 20-plus terabyte drives. As a percentage of our nearline exabytes shipments, 20-plus terabyte capacity drives has grown from high single digits to approximately 2/3 of our nearline exabytes year-over-year, reflecting our customer of higher density storage for their data center needs. Looking ahead, we expect nearline exabyte shipments to decline over the next couple of quarters as cloud customers intensify their efforts to reduce inventory and improve the productivity of their existing infrastructure.

近線出貨量達87EB，季增9%，這得益於20TB以上硬碟的成長。 20TB以上容量硬碟占我們近線EB出貨量的百分比已從個位數成長至近線EB出貨量的約三分之二，這反映出我們的客戶正在尋求更高密度的儲存來滿足其資料中心的需求。展望未來，我們預計近線EB出貨量將在未來幾季內下降，因為雲端客戶將加強減少庫存並提高現有基礎設施的生產力。

Specific to the VIA market, revenue declined sequentially, largely as expected. As we outlined earlier, based on interaction with customers, we expect gradual recovery in the second half of the calendar year. Within the Legacy market, revenue was $371 million, down 12% sequentially, reflecting a steeper-than-anticipated decline in mission-critical sales amid a more cautious spending environment and weakening server demand, while the client and consumer markets reflect the typical seasonal demand patterns.

具體到威盛市場，營收季減，基本符合預期。正如我們之前所述，基於與客戶的溝通，我們預計下半年將逐步復甦。在傳統市場，營收為3.71億美元，環比下降12%，這反映出在更為謹慎的支出環境和伺服器需求減弱的情況下，關鍵任務銷售額的下降幅度大於預期；而客戶端和消費市場則反映了典型的季節性需求模式。

Finally, revenue for our non-HDD business increased 14% sequentially to $256 million, a bright spot for the quarter. As anticipated, we grew sales for our enterprise system as component supply constraints continue to improve and we expand our market coverage.

最後，我們的非硬碟業務收入環比成長14%，達到2.56億美元，這是本季的亮點。正如預期，隨著零件供應緊張的持續改善以及市場覆蓋範圍的擴大，我們的企業系統銷售實現了成長。

Moving to our operational performance. Non-GAAP gross profit in the March quarter was $347 million reflecting lower revenue and a less favorable mix than what we anticipated. Underutilization cost of approximately $75 million, similar to the prior quarter but higher than we were originally forecasting as we delayed the start in production to later in the quarter, as noted at the recent investor conference. Accounting for risk and underutilization cost, which translates into more than 400 basis points of margin headwind, we recorded non-GAAP gross margin of 18.7% compared with 21.4% in the prior quarter.

談到我們的營運表現。 3月季度的非公認會計準則毛利為3.47億美元，反映出收入低於預期且產品組合不盡人意。產能利用不足成本約為7500萬美元，與上一季持平，但高於我們最初的預測，因為我們將投產時間推遲至本季度後期，這一點在最近的投資者會議上已提及。考慮到風險和產能利用不足成本（這會導致超過400個基點的利潤率下降），我們的非公認會計準則毛利率為18.7%，而上一季為21.4%。

Based on our current outlook, we expect underutilization costs to improve in the June quarter, even if production output remained well below the year ago level. We expect both gross profit and gross margin to move higher as demand recovers towards the end of calendar year 2023 and our cost structure improvements are fully realized.

根據我們目前的展望，即使產量仍遠低於去年同期水平，我們預計6月份季度未充分利用成本將有所改善。隨著2023年底需求復甦以及成本結構優化措施全面落地，我們預期毛利和毛利率都會有所提升。

We reduced non-GAAP operating expenses to $282 million, down $63 million year-over-year and $12 million sequentially. The year-on-year decline reflects our cost structure improvement actions to date, lower variable compensation as well as disciplined cost management. We expect non-GAAP OpEx in the June quarter to be similar to the March quarter.

我們將非公認會計準則營運支出降至2.82億美元，年減6,300萬美元，季減1,200萬美元。同比下降反映了我們迄今為止採取的成本結構改進措施、降低浮動薪酬以及嚴格的成本管理。我們預計6月季度的非公認會計準則營運支出將與3月季度持平。

I would point out that our GAAP operating expenses for the March quarter included the $300 million reserve associated with the BIS settlement agreement and will be paid in quarterly installments of $15 million over the course of 5 years, starting in fiscal Q2 of 2024. We incurred non-GAAP tax expenses of $36 million in the March quarter. Our tax expense is largely based on a full year GAAP forecast by geography and allocated between the quarters based on expected profitability.

需要指出的是，我們3月季度的GAAP營運費用包含與BIS和解協議相關的3億美元準備金，並將從2024財年第二季開始，在五年內按季度分期支付，每次1500萬美元。 3月季度的非GAAP稅費為3,600萬美元。我們的稅費主要基於按地區劃分的全年GAAP預測，並根據預期獲利能力在各季度之間分配。

We expect total non-GAAP tax expenses for fiscal year '23 to be approximately $45 million to $50 million. Based on diluted share count of approximately 207 million shares, GAAP loss per share for the March quarter were $2.09, which reflects the reserve that I mentioned earlier. Non-GAAP loss per share was $0.28.

我們預計2023財年非公認會計準則稅費總額約為4,500萬至5,000萬美元。基於約2.07億股的稀釋股份數量，3月當季公認的會計準則每股虧損為2.09美元，這反映了我之前提到的準備金。非公認會計準則每股虧損為0.28美元。

Moving to balance sheet and cash flow. We ended the March quarter with liquidity level of approximately $2.5 billion, including our revolving credit facilities. Inventory was relatively flat sequentially at $1.2 billion, consistent with our plans. We reduced capital expenditure to $54 million in the March quarter, down 22% sequentially. We expect CapEx to remain relatively flat in the June quarter.

再來看看資產負債表和現金流。截至3月季度，我們的流動性水準約為25億美元，其中包括循環信貸額度。庫存環比持平，為12億美元，符合我們的計畫。 3月季度，我們將資本支出削減至5,400萬美元，較上季下降22%。我們預計6月季度的資本支出將保持相對穩定。

Free cash flow generation was $174 million, up slightly quarter-over-quarter and reflecting our ongoing focus to optimize free cash flow. We currently expect to generate positive free cash flow through calendar year 2023, dependent on the timing of restructuring costs. We used $145 million for the quarterly dividend and exited the quarter with 207 million shares outstanding. We are not currently planning to repurchase any share in the next several quarters, consistent with our near-term focus on optimizing cash balances.

自由現金流產生量為1.74億美元，季比略有成長，體現了我們持續致力於優化自由現金流的決心。我們目前預計，到2023年，自由現金流將達到正值，取決於重組成本的發生時間。我們已使用1.45億美元派發季度股息，截至本季末，流通股總數為2.07億股。我們目前不打算在未來幾季回購任何股票，這與我們近期優化現金餘額的重點一致。

Our debt balance exiting the quarter was just below $6 billion, down $71 million quarter-over-quarter. Adjusted EBITDA for the last 12 months totaled $1.3 billion, resulting in a gross debt leverage ratio of 4.5x. Since fiscal Q1 of '23, we have reduced debt by approximately $290 million. In fiscal Q4, we plan to further reduce debt by approximately $550 million.

本季末，我們的債務餘額略低於60億美元，季減7,100萬美元。過去12個月的調整後EBITDA總計13億美元，總負債槓桿率為4.5倍。自2023財年第一季以來，我們已減少約2.9億美元的債務。在第四財季，我們計劃進一步減少約5.5億美元的債務。

Interest expense in the March quarter was $81 million, and is expected to be similar in the June quarter.

3 月季度的利息支出為 8,100 萬美元，預計 6 月季度的利息支出也將大致相同。

Turning to our outlook. In the context of the market challenges that we have outlined today, we expect the June quarter revenue to be in the range of $1.7 billion, plus or minus $150 million. We project incremental decline in the mass capacity business mainly driven by customer focus on inventory drawdown in our nearline cloud market. At the midpoint of our revenue guidance, we expect non-GAAP operating margin to be in the low to mid-single-digit range, which includes between $50 million and $60 million in underutilization cost, and we expect a non-GAAP loss in the range of $0.20 plus or minus $0.20.

談到我們的展望。鑑於我們今天概述的市場挑戰，我們預計6月當季營收將在17億美元左右，上下浮動1.5億美元。我們預期大容量業務將出現逐步下滑，主要原因是客戶關注我們近線雲市場的庫存減少。在營收預期的中位數，我們預計非公認會計準則（Non-GAAP）營業利潤率將處於低至中等個位數區間，其中包括5000萬至6000萬美元的未充分利用成本，我們預計非公認會計準則（Non-GAAP）虧損將在0.20美元左右，上下浮動0.20美元。

I will now turn the call back to Dave for final comments.

現在我將把電話轉回給戴夫，請他發表最後的評論。

Thanks, Gianluca. The past year has presented a set of challenges that have impacted Seagate and our industry to a degree not seen for more than a decade. As our outlook and commentary today demonstrate, we believe that we are still a couple of quarters away from seeing a positive turn in demand for data storage. However, there are a few key takeaways that underpin our confidence in the business and our long-term potential.

謝謝，Gianluca。過去的一年，我們經歷了一系列挑戰，對希捷和整個產業的影響達到了十多年來前所未有的程度。正如我們今天的展望和評論所表明的那樣，我們認為距離資料儲存需求的積極轉機還有幾個季度的時間。然而，以下幾個關鍵點鞏固了我們對業務和長期潛力的信心。

We are aggressively managing through this environment and taking appropriate actions to generate positive free cash flow, strengthen our balance sheet and enhance future profitability, all while executing our technology road map. To that end, we have continued to prioritize investments on our HAMR product road map. These drives offer the highest density, most cost-efficient mass capacity drive storage, which we believe translates into a competitive advantage for our customers, and we are focused on driving appropriate returns for the value we are delivering. And we continue to receive indications from our customers that demand will pick up as the global economy improves.

我們正積極應對當前環境，並採取適當措施創造正向自由現金流，增強資產負債表，提升未來獲利能力，同時執行我們的技術路線圖。為此，我們繼續優先投資於HAMR產品路線圖。這些硬碟提供最高密度、最具成本效益的大容量硬碟存儲，我們相信這將轉化為客戶的競爭優勢，我們專注於為我們提供的價值帶來合理的回報。我們不斷收到客戶的回饋，顯示隨著全球經濟的復甦，需求將會回升。

The secular drivers powering long-term demand for storage are intact, and this fact is at the root of the conversations we're having with customers across our key markets and geographies. I'd like to thank and recognize our global team for your resilience and perseverance through this challenging period. We are keeping our heads down and aim to make continued progress towards our goal as we move closer to market recovery. Thanks again for joining, and let's open up the call for questions.

推動長期儲存需求的長期驅動因素依然完好，而這一事實正是我們與主要市場和地區客戶溝通的根本原因。我要感謝並讚揚我們全球團隊在這段充滿挑戰的時期所展現的韌性和毅力。隨著市場復甦的臨近，我們將保持低調，並致力於繼續朝著目標邁進。再次感謝您的參與，讓我們開始提問環節。

(Operator Instructions) Our first question will come from Erik Woodring of Morgan Stanley.

（操作員指示）我們的第一個問題來自摩根士丹利的埃里克·伍德林。

Dave, can you maybe help us understand kind of as we sit here today, what gives you the confidence to kind of talk about a recovery towards the end of the calendar year? I guess what I'm hearing from you is a worsening of demand in the last few weeks of the quarter, greater macro concerns amongst customers, obviously, challenges in the nearline market. And so like what data points are you seeing today? Or what are customers saying to you that gives you the confidence that the recovery will happen towards the end of the year as we sit here today? And then I have a follow-up.

戴夫，您能否幫助我們理解一下，今天我們坐在這裡，是什麼讓您有信心談論年底經濟復甦？我聽到您說的是，本季最後幾週需求惡化，客戶對宏觀經濟的擔憂加劇，顯然還有近線市場面臨的挑戰。您今天看到了哪些數據點？或者說，客戶對您說了什麼，讓您有信心在年底經濟復甦？然後我還有一個後續問題。

Yes. Good. Thanks, Erik. As you alluded to, we've been anticipating a return to exabyte demand growth in the nearline for a few quarters, but what we saw coming out of the last quarter still reflects that there's too much inventory against just a very slow near-term mass capacity demand. I would say that the customers are spending money. They're not necessarily spending money on mass capacity storage right now, they may be spending on compute or other investments that they're choosing to make. And then as we look through into their data center behaviors, if you will, we're somewhat encouraged that the data continues to grow.

是的，很好。謝謝，Erik。正如您所提到的，我們幾個季度以來一直預期近線儲存需求將恢復EB級成長，但上個季度的表現仍然反映出，庫存過剩，而近期大容量需求卻非常緩慢。我想說的是，客戶正在花錢。他們現在不一定在大容量儲存上花錢，他們可能在計算或其他他們選擇的投資上花錢。然後，當我們仔細研究他們的資料中心行為時，我們會發現資料量仍在持續成長，這多少讓我們感到鼓舞。

So in the data centers, the drives that are in there are being strongly utilized. There are some drives that are living a little bit longer in data center applications, but there's also really compelling value propositions we're putting in front of them with higher capacity drives like 30-plus terabytes and new features that are coming that should drive adoption, and we should get a refresh. So as all of these things need to be factored into our planning, they're all important. But the most important thing right now is this reflects kind of our sentiment coming out of last quarter is we don't want to push too much in, especially the older technology products.

因此，在資料中心，現有的硬碟利用率很高。有些硬碟在資料中心應用中的使用壽命會更長一些，但我們也為它們提供了極具吸引力的價值主張，例如30TB以上的大容量硬碟，以及即將推出的新功能，這些功能應該會推動其普及，我們應該進行產品更新。所有這些因素都需要納入我們的規劃中，它們都很重要。但目前最重要的是，這反映了我們上個季度的情緒，即我們不想投入太多，尤其是那些老款科技產品。

We want to really stage ourselves for the new technology products and make sure that, that inventory flows through. Timing is everything, exactly to your point. But I do think with the way data is growing, the evidence that we have, the data is growing. Even anecdotally, I can talk about Seagate's IT, we can see the data growing in the cloud much further than our projections were a long time ago, and this is fairly consistent with discussions that I have with CIOs and other fellow travelers.

我們希望真正為新技術產品做好準備，並確保庫存週轉。時機至關重要，正如您所說。但我確實認為，隨著數據的成長，我們掌握的證據也顯示數據正在成長。即使是軼事，例如希捷的IT，我們也可以看到雲端資料的成長速度遠遠超出了我們很久以前的預測，這與我與資訊長和其他同行的討論基本一致。

I do think that we're not at peak cloud or anything like that. I think the cloud applications are growing tremendously in data size, and it's just a prioritization issue that we're in the middle of right now. So we just focused on taking actions to further manage the downturn like cost and footprint and still to keep driving the technology leadership so we're there when markets recover. That's how we think we can create the best foundation to quickly move back into the targeted financial range when the demand resumes.

我確實認為我們還沒有達到雲端運算的峰值或類似的水平。我認為雲端應用的資料規模正在急劇成長，這只是我們目前面臨的優先順序問題。因此，我們專注於採取措施進一步管理低迷時期，例如成本和空間佔用，並繼續保持技術領先地位，以便在市場復甦時佔據優勢。我們認為，這樣才能奠定最佳基礎，以便在需求恢復時迅速回到目標財務範圍內。

Okay. And then I guess, Luca, I know you mentioned talking about paying down the $540 million maturity in June. But can you maybe just help us understand some of your sources and uses in cash over the next, let's call it, 6 to 12 months, how you're thinking about your liquidity situation, just given your leverage is kind of quickly kind of creeping up towards that 5x number. And then, for example, how are you thinking about the stability of your dividend, any potential drawdown of your revolver, adjustments to covenants? Maybe if you could just unpackage that a bit, that would be helpful for us.

好的。盧卡，我知道你提到在6月償還5.4億美元的到期債務。但你能不能幫我們了解一下未來6到12個月，你的現金來源和用途？考慮到你的槓桿率正在迅速攀升至5倍，你是如何考慮流動性狀況的？還有，比如說，你如何考慮股利的穩定性、循環信用額度的潛在提取、契約的調整？如果你能稍微解釋一下這些，或許會對我們有幫助。

Yes. Thank you, Erik. Well, we renegotiated our covenants in the December quarter. We have paid down already a big part of our debt between December and even the March quarter. As you said, we already discussed about the repayment coming in June about $550 million. So we are very focused on reducing the debt as to the leverage. We are generating free cash flow -- positive free cash flow every quarter until now. So part of that free cash flow is also going to help with the repayment of the debt. We have other sources that we are looking at. One of those that we discussed in the past is some sales and leaseback of nonmanufacturing buildings that we are working on right now. So all this will help with our debt covenants. And if we need to do more, we can do more.

是的，謝謝你，艾瑞克。我們在12月季度重新協商了債務契約。從12月到3月季度，我們已經償還了很大一部分債務。正如你所說，我們已經討論了6月約5.5億美元的還款。因此，我們非常專注於降低債務和槓桿率。我們一直在產生自由現金流——到目前為止，每個季度都是正的自由現金流。因此，部分自由現金流也將有助於償還債務。我們正在考慮其他資金來源。我們過去討論過的一個方案是一些非製造業建築的售後回租，我們目前正在進行這項方案。所有這些都將有助於我們履行債務契約。如果我們需要做更多，我們可以做得更多。

The next question comes from Tom O'Malley of Barclays.

下一個問題來自巴克萊銀行的湯姆奧馬利。

I just wanted to dive a little bit into the dynamics of the full year. I think you just said that you expect some declines in nearline for the next several quarters. Just given the size of how big that end market is for you guys, do you expect any sequential growth for the remainder of this calendar year? And if so, are you getting that with about a VIA market or a recovery in Legacy? Can you just walk through the puts and takes of total revenue and when you may see that inflection given the new outlook?

我想稍微深入探討一下全年的動態。您剛才提到，預計未來幾季近線晶片市場會出現下滑。考慮到這個終端市場對你們來說規模如此之大，您預計今年剩餘時間會達到環比成長嗎？如果是的話，您認為這是因為VIA市場或Legacy晶片市場復甦嗎？您能否簡單介紹總收入的利弊，以及在新的前景下，何時會出現轉捩點？

So a few points. I would say that the next quarter will be fairly muted as what we just described. I do think that there will be exabyte growth as we -- I'll say, late in this calendar year as we get towards the end of the calendar year. That comes from many cloud service providers in the world that are getting through their digestion phase, if you will. Because again, there's a lot of data that we get from them about utilization rates being high inside the data centers and data continuing to grow. So I do think this is going to be over at some point.

有幾點。我想說的是，正如我們剛才描述的，下個季度的數據會相當平淡。我確實認為，到今年年底，也就是接近年底的時候，數據量會達到EB級的成長。這是因為全球許多雲端服務供應商正在經歷消化階段。因為我們從他們那裡獲得了大量數據，顯示資料中心內部的使用率很高，而且數據還在持續成長。所以，我確實認為這種情況最終會結束。

Relative to the VIA markets and maybe the broader macro, we're not really calling the end of any macro uncertainty as part of this, but we do think that some of the investments that have been put off and put off for quite some time may actually come back at the -- towards the back half of the year. So there's positive sentiment. It hasn't translated into POs yet, but that's the way we're feeling about it.

相對於VIA市場，或許還有更廣泛的宏觀經濟，我們不認為任何宏觀不確定性的結束是其中的一部分，但我們確實認為，一些被推遲了相當長一段時間的投資，實際上可能會在今年下半年回歸。所以，市場情緒是正面的。雖然這還沒有轉化為採購訂單，但我們感覺是這樣。

And only one other point that I would make there is that inside of the cloud workloads that we see, the data growth is actually fairly profound. So I think people can make trade-offs with older drives that they have running and throwing data away and things like that, but at some point, the world runs out of gas. We all know it's -- we're creating more and more data all the time in the form of videos and communications and AI and things like that are all going to need the data. So we're just really focused on making the space for it. I don't think the world can deal with this kind of supply and demand imbalance for very long, but we need to take the actions that we are taking on the supply side to make sure that we're not waiting too long.

我只想強調的一點是，在我們觀察到的雲端工作負載中，資料成長其實相當顯著。所以我認為人們可以權衡利弊，放棄運行老舊的硬碟，丟棄資料等等，但總有一天，世界會耗盡資源。我們都知道——我們一直在以視訊、通訊、人工智慧等形式創造越來越多的數據，而這些數據都需要數據。所以我們真正專注於為這些數據騰出空間。我認為世界無法長期應對這種供需失衡，但我們需要在供應方面採取行動，確保我們不會等待太久。

Got it. And then the second one is for Gianluca. Just on the gross margin side, underutilization charges went up slightly quarter-over-quarter, and you kind of laid out what the charges would be for the guided quarter. But in terms of the impact to gross margin, gross margins are down substantially more than the impact on the map that I'm doing in underutilization. Obviously, there's some revenue impact as well. But could you talk to -- is it just mix with VIA being a bit higher in mass capacity? Is there any pricing pressure that you're seeing from the nearline customers? Could you just walk through why you're seeing more gross margin pressure than just the underutilization charges?

明白了。第二個問題是關於Gianluca的。就毛利率而言，未充分利用費用環比略有上升，您也大致說明了預期季度的未充分利用費用是多少。但就對毛利率的影響而言，毛利率的下降幅度遠遠超過了我在圖表上繪製的未充分利用費用的影響。顯然，收入也受到了一定的影響。您能否談談—這是否只是因為VIA在大容量方面略高？您是否看到近線客戶面臨定價壓力？您能否解釋一下，為什麼毛利率壓力比未充分利用費用更大？

Yes. Thanks, Tom. So I would say the March quarter, of course, has some mix impact also. For example, mission-critical was sequentially down. And as you know, it has a good gross margin generation. VIA was also sequentially down. So we had a couple of segments that are, let's say, above average gross margin in March because of seasonality we're down. So we see that recovering actually in the June quarter.

是的，謝謝，湯姆。所以我認為3月季度當然也有一些影響。例如，關鍵任務處理器的毛利率較上季下降。如你所知，它的毛利率不錯。 VIA的毛利率也較上季下降。所以，我們有幾個部門的毛利率高於3月份的平均水平，這是因為季節性因素導致的。所以我們預計6月季的毛利率會回升。

As you said, there is also some pricing pressure, especially through the end of the quarter with no certain customers. We decided to take some of those deals, and we decided to take -- not to take other deals. And so this is what we are focusing on, trying to keep a supply-demand balance where we can. This is why we are doing another restructuring action. We want to keep the capacity that we have internally aligned to the short-term demand and then, of course, in the longer term, keeping that balance in a way that there is not too much pricing pressure to Seagate and to the industry in general.

正如您所說，價格壓力也存在一些，尤其是在本季末，由於沒有確定的客戶。我們決定接受其中一些交易，並決定不接受其他交易。這就是我們目前關注的重點，力求盡可能保持供需平衡。這也是我們再次進行重組的原因。我們希望保持內部產能與短期需求保持一致，當然，從長遠來看，我們也要保持這種平衡，以免對希捷乃至整個產業造成過多的價格壓力。

Tom, I would add on to that. Just you can see the pricing stress in the -- fairly readily in the dollar per terabyte trends. And so that's why we have to be very discerning about what deals we're taking. But I think it's reflective of a world where manufacturers are just trying to convert inventory back to cash as quickly as they can. And our answer long term has got to be don't build too much so that we don't get ourselves into that position and then focus on a transition to a more substantial value proposition like higher capacity or lower cost like VIA, the areal density gains that we might have and we apply that to lower capacity drives, just in order to rebuild the margin for ourselves and for the industry.

湯姆，我想補充一點。你很容易就能看出每TB價格的上漲趨勢中存在著定價壓力。這就是為什麼我們必須非常謹慎地選擇交易。但我認為這反映出製造商們只想盡快將庫存變現。我們的長期應對策略是不要生產太多，以免陷入這種境地，然後專注於轉向更實質性的價值主張，例如更高容量或更低成本，就像威盛那樣，我們將可能獲得的面密度提升應用到低容量驅動器上，只是為了重建我們自己和行業的利潤空間。

The next question comes from Wamsi Mohan of Bank of America.

下一個問題來自美國銀行的 Wamsi Mohan。

I was wondering if you could just maybe talk about the outlook and pricing as well. It seems like your time line for nearline demand recovery is kind of late in the year, HAMR shipments starting like in volume, maybe early next year. In the interim, clearly, like memory pricing, NAND demand, NAND pricing has been also under significant pressure. So would you say that -- as you're thinking about this comment about gross margin improvement as you go through the course of the year, is that predicated on stable pricing, improving or worsening pricing? Any color you can share? And do you think that, that pricing environment could deteriorate a lot more as you go through the course of the year? And I'll follow up.

我想知道您是否可以談論前景和定價。您預計近線需求復甦的時間點似乎在今年晚些時候，HAMR 出貨量可能會在明年年初開始。在此期間，顯然，就像記憶體價格、NAND 需求一樣，NAND 價格也承受著巨大的壓力。那麼，您能否說一下——在您思考今年毛利率改善時，這是基於價格穩定、價格改善還是價格惡化？可以分享一些細節嗎？您是否認為，隨著今年的推進，定價環境可能會進一步惡化？我會繼續跟進。

I'll let Gianluca talk about the restructuring because I think that's a significant part of your question. But I would say relative to the pricing environment, this is really where -- we believe we have good products that 20 terabytes to mid-20 capacity points and not -- there's not great demand right now, but we have good products that we can yield and so on. The way out of it, of course, is to continue the areal density gains into the mid-30s and we get the chance to reset things a little bit.

我讓詹盧卡談談重組，因為我認為這是你問題中很重要的一部分。但我想說，相對於定價環境，這才是真正的關鍵——我們相信我們擁有 20TB 到 20TB 左右容量的優質產品，而不是——目前需求不大，但我們擁有可以生產的優質產品等等。當然，擺脫困境的方法是繼續將面密度提升到 30TB 左右，這樣我們就有機會稍微調整一下。

From my perspective, the demand environment is so low that the way pricing becomes more strained is when we overbuild. And so that's what we have to make sure that we don't do because we can't continue to stress ourselves and our cash that way. So we just have to wait this thing out a little bit. So Gianluca, if you want to talk about the first part.

從我的角度來看，需求環境如此低迷，以至於過度建設會導致定價更加緊張。我們必須確保不這樣做，因為我們不能繼續這樣給自己和資金帶來壓力。所以我們只能等一段時間。所以，詹盧卡，如果你想談談第一部分。

Yes. A good part of the improvement in our gross margin starting fiscal Q1 is related to the restructuring actions that we are taking right now. We said it is about $200 million annualized savings. And it will be fully realized probably through the end of fiscal Q1. The plan is based on the current visibility of pricing. As you know, that can change. And we are trying to reduce our capacity so that we build the right level of products for the current demand, and we take out some pressure from pricing.

是的。從第一財季開始，我們的毛利率提升很大程度上與我們目前正在採取的重組措施有關。我們之前說過，這相當於每年節省約2億美元。預計到第一財季末，這一成本將完全實現。該計劃基於當前的價格透明度。如你所知，價格透明度可能會改變。我們正在努力降低產能，以便生產符合當前需求的產品，並減輕一些價格壓力。

Okay. Thanks for that color. And if I could follow up, Gianluca, on the comments around positive free cash flow for the remainder of the year. Your free cash flow and EBITDA levels have the potential to deteriorate from current levels. And when we look at that on an LTM basis, it does get you pretty close to your existing covenants. I know you mentioned certain actions that you can take on sale leaseback and other elements. But how should investors think about the dividend in this context, given that you have some cash restructuring charges coming up, you do have other uses of cash as well? I know you are paying down debt. But in the context of dividend, should investors think that's pretty secure as we go through the course of this year? Or is that going to be another lever to use to balance the cash sources and uses for you?

好的。謝謝你的提問。 Gianluca，我想跟進關於今年剩餘時間自由現金流為正的評論。你們的自由現金流和EBITDA水準可能會從目前水準下降。如果我們從長期來看，它確實非常接近你們現有的契約。我知道你提到了你們可以針對售後回租和其他因素採取的某些行動。但是，考慮到你們即將產生一些現金重組費用，你們還有其他現金用途，投資人該如何看待股利？我知道你們正在償還債務。但是，就股息而言，投資者應該認為今年全年股息是相當安全的嗎？或者，這會成為你們平衡現金來源和用途的另一個槓桿？

Seagate has always been very focused on shareholder return. As you know, we have suspended share buyback based on the current economic situation, but we have protected our dividend. We think we can reduce our leverage in the next few quarters or already discussed that leverage level with our banks. But I'll say until now, we have always protected our dividend.

希捷一直非常注重股東回報。如您所知，鑑於當前的經濟形勢，我們暫停了股票回購，但我們仍然維持了股息。我們認為我們可以在未來幾季降低槓桿率，或者已經與銀行討論過這個槓桿率水準。但我想說，到目前為止，我們始終保持著股息的穩定。

Yes. I'd say, Wamsi, that I'm proud of who we've been. If you look just over the last 15 years when we came up with some of the policies that we're talking about, I'm really proud of what have we been able to return value to shareholders. Times are tough right now. We have a lot of levers that we can look at, I think, over time. But we want to continue to be that company that we have been.

是的。 Wamsi，我想說，我為我們一直以來的表現感到自豪。回顧過去15年，我們制定了我們正在談論的一些政策，我為我們能夠為股東創造的價值感到非常自豪。現在形勢艱難。我認為，我們有很多可以長期借鏡的策略。但我們希望繼續保持我們一直以來的風采。

So we're factoring this into all of our discussions right now what our priorities are, trying to keep the exact same priorities we've always had for shareholders. And one of the reasons why we're being really aggressive on the cuts that we are, we're also as aggressively trying to turn some of the assets that we have into cash. We'll continue to look at all those options.

因此，我們目前在所有討論中都會考慮到這一點，確定我們的優先事項，並努力保持股東利益的優先地位。我們之所以如此積極地削減開支，原因之一就是我們也積極地將部分資產變現。我們將繼續研究所有這些選擇。

The next question comes from Timothy Arcuri of UBS.

下一個問題來自瑞銀的提摩西‧阿庫裡。

I had 2. So Gianluca, just on free cash flow. So are you implying that it's going to be positive for the June quarter? Because you did extend payables a lot in March, and you'd probably have to bring that down maybe 25 days or so. So it seems like maybe June free cash flow could be quite a bit negative. So what's the message on June and particularly around cash flow?

我有2個問題。 Gianluca，關於自由現金流。您是說6月季的自由現金流會是正數嗎？因為3月份您確實延長了很多應付款項，現在您可能需要將其縮短25天左右。所以看起來6月的自由現金流可能會出現相當大的負值。那麼，關於6月份，特別是現金流方面，您有什麼預期嗎？

We see June still a positive free cash flow. Of course, we need also to look at the exact timing of the payment for the restructuring actions. But in our plan, we have positive free cash flow for June.

我們預期6月的自由現金流仍為正值。當然，我們還需要考慮重組行動的特定付款時間。但在我們的計畫中，6月的自由現金流為正值。

You do. Okay. Okay. Then I guess I had a bigger-picture question. So Dave, in your prepared remarks, you talked about some evaluation of the longer-term capacity needs for the business and that's kind of a new angle. And we've gone from a year ago, thinking that the industry didn't have enough capacity, and now we're thinking about having too much on a structural basis.

是的。好的。好的。那我想我的問題比較宏觀一些。戴夫，在你準備好的演講中，你談到了對企業長期產能需求的一些評估，這是一個新的角度。一年前，我們認為產業產能不足，而現在，我們認為從結構上來說產能過剩。

So I guess, can you talk about that and maybe in the context of that, just given how low NAND pricing has gone, we're now basically at cash cost. Is there a risk that there's some cannibalization happening now in nearline? And sort of what's the TCO difference in SSD and nearline now and data center? Is that part of what's driving you to talk about maybe rethinking what the longer-term capacity needs are for the business?

所以我想，您能否談談這個問題？鑑於NAND價格已經跌至如此低位，我們現在基本上處於現金成本狀態。近線儲存是否有被蠶食的風險？目前SSD與近線儲存與資料中心的TCO（總擁有成本）有何差異？這是否促使您重新思考業務的長期容量需求？

Okay. Let me address that second problem -- or the second question first. No is the answer to that question. I think we believe that some of the SSD pricing that we're seeing is unsustainable, fundamentally unsustainable. It might go on for a while, but it's unsustainable. So we're not really factoring that into our calculation for exabyte demand over time. I don't think -- even at the rates that we're seeing today, our ability to continue to take cost out and deliver more terabytes over time is going to keep us with a substantial gap to any competing technology.

好的。我先來談談第二個問題──或者說是第二個問題。答案是「否」。我認為，我們現在看到的一些SSD定價是不可持續的，從根本上來說是不可持續的。這種情況可能會持續一段時間，但肯定是不可持續的。所以我們並沒有把這一點真正納入對未來EB級資料需求的計算中。我認為，即使以我們目前的速度，我們持續降低成本並提供更多TB級數據的能力，也無法讓我們與任何競爭技術保持顯著的差距。

I will say that your question is super appropriate. It's -- over the last year, industry hasn't been putting on capacity. There are suppliers that we have that are unfortunately bearing the brunt of this and they're still assessing their own investments or consolidating the factories and things like that. So from an equipment perspective, there's less capacity than there was a year ago.

我想說，你的問題非常恰當。過去一年，整個產業一直沒有增加產能。不幸的是，我們的一些供應商首當其衝，他們仍在評估自己的投資或整合工廠之類的。所以從設備角度來看，產能比一年前有所下降。

But definitely, from a people perspective, there's less capacity than there was a year ago because of significant people takedowns, which we know is really hard and nobody wants to do, and that capacity can recover but not quickly. So if you start staring out a year from now, does the industry have the same amount of capacity that it did a year ago? The answer is no.

但從人員角度來看，由於大規模裁員，目前的運力確實比一年前有所下降。我們知道裁員非常困難，沒人願意這麼做。運力雖然可以恢復，但速度不會很快。所以，如果從現在開始展望一年後，這個產業的運力水準還會和一年前一樣嗎？答案是否定的。

Theoretically, it can grow back, but it's a matter of time and investment. And from my perspective, the biggest thing we're focused on is the lead times are so long on some of the starts, for example, wafer starts that we have for the new products that we're making sure the customers understand that it's not going to snap back and we better have discussions right now about what the true demand that they they're going to need fulfilled out there a year from now.

理論上，它可以恢復，但這是一個時間和投資的問題。在我看來，我們最關注的問題是，一些產品的交付週期太長了，比如我們新產品的晶圓生產週期，我們要確保客戶明白，產能不會迅速恢復，我們最好現在就討論一下，一年後他們需要滿足的真正需求是什麼。

In some sense, the kind of consumer behavior where you say, I don't need to buy any for a while and then I can go -- always go to the store and get some. That's the -- but I think it will be challenged because I think that's what a lot of enterprises are kind of assuming to make their models look okay right now. And that's why the factory workers are getting strained. But we're going to have to navigate our way through this and be as communicative as we can. I don't think the industry capacity is what it was a year ago. And I think if you don't tell us now, then it may actually be even more stressful for you a year from now.

從某種意義上說，這種消費者行為就像你說的，『我暫時不需要買任何東西，然後我就可以去商店買一些。 ’就是這樣——但我認為這將面臨挑戰，因為我認為很多企業現在都假設了這一點，以使他們的模式看起來還不錯。這也是工廠工人感到壓力的原因。但我們必須找到解決辦法，並盡可能保持溝通。我認為現在的產業產能不如一年前了。而且我認為，如果你現在不告訴我們，那麼一年後你可能會面臨更大的壓力。

The next question comes from Aaron Rakers of Wells Fargo.

下一個問題來自富國銀行的 Aaron Rakers。

Aaron, we can't hear you.

亞倫，我們聽不到你說話。

Yes. Sorry about that, guys. Can you hear me?

是的。抱歉，各位。聽得到我說話嗎？

Yes, yes.

是的，是的。

Yes. Sorry about that. I guess I got 2 real quick. Dave, just on the heels of that last question, I'm just curious of if you're asked kind of the longer-term growth of nearline capacity shift trends, where do you think that is today? Like as we come out of this, do you think we -- maybe I will stop there. What do you think that long-term capacity shift growth trend looks like now?

是的，抱歉。我猜我很快就有兩個問題了。戴夫，緊接著最後一個問題，我很好奇，如果有人問你近線容量轉移趨勢的長期成長，你認為現在的趨勢如何？我們討論完這個問題之後，你認為──也許我就到此為止了。你認為現在的長期容量轉移成長趨勢是什麼樣的？

Yes. It's an interesting question because I think if we go back a couple of years, you remember there was a stall and then there was an enormous growth pop back. I think it's not going to happen like that again. I mean, from an exabyte perspective, if by that time, we're on mid-3 terabytes per disc or even potentially 4 terabytes per disc that our exabyte output is going to be significantly higher at better economics for us as well. But will we have enough capacity for everyone all at the time? I think the answer to that is probably no.

是的。這是一個有趣的問題，因為我認為如果我們回顧幾年前，你會記得當時成長停滯，然後又出現了巨大的反彈。我認為這種情況不會再發生了。我的意思是，從EB的角度來看，如果到那時，我們的每張光碟容量達到3TB左右，甚至可能達到4TB，那麼我們的EB產量將會顯著提高，經濟效益也會更好。但我們當時是否有足夠的容量來滿足所有人的需求呢？我認為答案可能是否定的。

So -- and I don't think we'll see the magnitude of the swing that we did before. Maybe we can't from theoretical demand, but I don't think there's going to be supply right now because of the stresses that are going on in the industry. And the fact that people just can't start materials, they won't have a whole lot of inventory, they won't have a whole lot of materials, they won't be leaning forward into some of those really great value propositions nearly as hard because they just can't do that speculatively on long lead times. So it's actually an interesting problem set versus what it was a few years ago.

所以——我認為我們不會再看到像以前那樣大幅的波動。或許從理論上講我們無法預測需求，但我認為由於產業目前面臨的壓力，目前供應不會充足。事實上，人們根本無法開始採購材料，他們不會有大量庫存，也不會有大量材料，他們幾乎不會像以前那樣積極地投入那些真正有價值的項目，因為他們無法在較長的交貨期內進行投機性投資。所以，與幾年前的情況相比，這實際上是一個有趣的問題。

Yes. And then the follow-up question, just trying to think about gross margin kind of normalizing itself or, I guess, taken another way, if we kind of think about the progression of lifting out the underutilization charge, appreciate you're not guiding beyond this next quarter. But as I look back in time, when I look back and say, hey, if this model gets back to total capacity shipment levels of 150 exabytes a quarter, 130 exabytes a quarter. How do we think about that relative to lifting out the underutilization charges in the P&L?

是的。接下來的問題是，我想問毛利率本身是否正常化，或者換個角度，如果我們考慮一下如何逐步消除未充分利用的費用，我很感激您沒有給出下一季之後的預測。但是，當我回顧過去，如果我說，嘿，如果這個模型的總容量出貨量恢復到每季度150EB，或者每季度130EB，那麼我們如何看待這一點，並將其與消除損益表中的未充分利用費用進行比較？

Well, of course, it depends on what will be the capacity installed at that point. As you know, we are reducing capacity right now. So gross margin, what we see today for the next several quarters is despite the short-term decline in revenue, we guided in a way that is implying an improvement in gross margin already in the June quarter. So I think that will continue for the next several quarters. And of course, as Dave was saying before, demand weakened it and capacity will be at a certain level, and hopefully, supply and demand will be well balanced. And we have to manage this short-term demand decline. But again, we are ready to do it. We have done that in the past, and we think we know how to do it.

當然，這取決於屆時安裝的產能。如你所知，我們目前正在削減產能。因此，就毛利率而言，我們目前對未來幾季的預測是，儘管收入短期內有所下降，但我們的預期暗示，6月份當季的毛利率已經有所改善。所以我認為這種情況將持續幾個季度。當然，正如戴夫之前所說，需求減弱了產能，產能將保持在一定水平，希望供需能保持平衡。我們必須應對短期需求下降。但再次強調，我們已經做好準備。我們過去已經這樣做過，我們認為我們知道該怎麼做。

So underutilization charges continue beyond the June quarter through the back half of the calendar year?

那麼，未充分利用的費用會持續到六月季度之後，直到下半年嗎？

We will have some, I think, also in September. But it is declining sequentially.

我認為9月也會有一些。但環比下降。

And some of that is a reset to fixed and variable cost as well, Aaron. So I think as we look forward, we have to project what we think the supply that we'll need to meet that demand is, of course, and we'll be adjusting and trimming as need be.

Aaron，其中一些也涉及固定成本和變動成本的重置。所以我認為，展望未來，我們必須預測我們需要多少供應才能滿足需求，當然，我們會根據需要進行調整和削減。

The next question comes from C.J. Muse of Evercore ISI.

下一個問題來自 Evercore ISI 的 C.J. Muse。

Yes. I was hoping to maybe drill down a little bit deeper on the nearline outlook. If you think about your vision 3 months ago versus today, obviously a change. And I guess I was hoping you could kind of isolate between cloud, enterprise and China and maybe rank order the change statements there in terms of the slowdown as well as from an end demand overall perspective versus just realizing that there's just too much inventory downstream, and that's what kind of caught you by surprise. So I would love to hear kind of maybe the moving parts there. And if you could prioritize what has really driven the change, that would be helpful.

是的。我希望能夠更深入地探討一下近線業務的前景。如果您將三個月前的願景與現在進行比較，顯然會有所變化。我希望您能夠將雲端、企業和中國市場區分開來，並根據經濟放緩以及終端需求的整體角度對這些變化進行排序，而不是僅僅意識到下游庫存過多，而這正是讓您感到意外的原因。所以我很想聽聽這方面的一些變化。如果您能列出真正推動這種變化的因素，那將會很有幫助。

Good. Thanks, C.J. I think it is good to break it down in a few different pieces. The most relevant, obviously, is the major cloud service providers around the world, and there are a few different behaviors depending on geography and so on. If I think about the big applications in the cloud, they are growing a lot. I think right now, there are priorities being made on compute and their priorities being made on other investments. And then there's people questioning business models and all of that just takes time to sort out, but the data keeps growing. So I think that's largely what we're seeing.

很好。謝謝，C.J。我認為最好將其分解成幾個不同的部分。最相關的顯然是全球主要的雲端服務供應商，根據地理位置等因素，它們的行為也有所不同。如果我考慮一下雲端的大型應用程序，它們正在快速成長。我認為目前，人們優先考慮計算，也優先考慮其他投資。然後，人們開始質疑商業模式，所有這些都需要時間來理清，但數據不斷增長。所以我認為這基本上就是我們所看到的。

We would have forecast 6 months ago that we would be coming out of it by now, just based on all these trends and run rates, and I think people can always hold on for another 3 months or 6 months. They can't hold on much longer than that. So that's the way I think about the major cloud service providers. The difference -- but Mike, the subtle difference might be in China, where you've got cloud providers there that really have been kind of on a pause for quite a while and are starting to get a little bit more optimistic, again, like I said -- I alluded to earlier, not necessarily purchase orders just yet, but get a little bit more optimistic about their investments. And so that's a watch item for when that might come back.

六個月前，我們根據所有這些趨勢和運行率預測，現在應該已經走出困境了。我認為人們總是能再堅持3個月或6個月。他們堅持不了多久了。這就是我對主要雲端服務供應商的看法。差別在於——但麥克，細微的差別可能在於中國，那裡的雲端服務提供者實際上已經暫停了一段時間，現在開始變得更加樂觀，就像我之前提到的那樣，不一定是採購訂單，而是對他們的投資更加樂觀。所以，這是一個值得關注的問題，看看這種情況何時會恢復。

On the enterprise side, I know there's a lot of discussion about servers and other componentry. From our perspective, data does continue to grow on-prem. There are stressed budgets in the CIO's world today. But I think some of the offerings are actually pretty efficient right now. So I do think for totally different reasons -- well, unless you consider macro being the underlying driver of everything, I think the on-prem enterprise is going to take 6 months probably as well.

在企業方面，我知道有很多關於伺服器和其他元件的討論。從我們的角度來看，本地數據確實持續成長。如今CIO們的預算緊張。但我認為目前有些產品其實相當有效率。所以，我確實認為，出於完全不同的原因——除非你認為宏觀經濟是一切的根本驅動力，否則我認為本地企業可能也需要6個月的時間。

I do think that there's not too much inventory there. So we've got anecdotal evidence that, that inventory has been well managed. And so if there's an opportunity to break north into some of those investments, we could go necessarily quicker.

我確實認為那裡的庫存並不多。所以我們有傳聞證據表明，那裡的庫存管理得很好。所以，如果有機會在北部地區進行一些投資，我們肯定會加快步伐。

Very helpful. And I guess as my follow-up to Gianluca, thinking about liquidity. You talked about intention to pay down the debt that's coming due in June. Curious how you're thinking about gross cash? And is there a plan today to draw on the revolver? Or that's TBD depending on kind of the free cash flow generation into June and September?

非常有幫助。我想作為對詹盧卡的後續提問，我想談談流動性問題。您提到了償還6月份到期債務的意願。請問您對總現金有什麼看法？今天有沒有計劃動用循環信貸？或者說，這取決於6月和9月的自由現金流情況，還有待確定。

No. I think our cash balance will be fairly stable at the end of the quarter compared to the end of March. So I don't think we need to use the -- we don't need to use the revolver. Now sometimes, we use a revolver during the quarter to cover for a few weeks. But in terms of cash balance, I think, it will be fairly similar to what we had at the end of March.

不。我認為本季末我們的現金餘額與3月底相比會相當穩定。所以我認為我們不需要使用循環信貸。現在有時我們會在季度中使用循環信貸來彌補幾週的損失。但就現金餘額而言，我認為它將與3月底的水平相當。

The next question comes from Krish Sankar of TD Cowen.

下一個問題來自 TD Cowen 的 Krish Sankar。

My first one is for Gianluca. Just wanted to follow up on HAMR. How much of a drag is it on margins today? And when do you think it will improve towards the corporate average? Is it just purely a function of volume in eve that helps you improve HAMR margins? And then is the long-term gross margin target still 30% to 33% baking in HAMR? Then I have a follow-up for Dave.

我的第一個問題是問Gianluca的。我想跟進一下HAMR的問題。它目前對利潤率的拖累有多大？您認為什麼時候才能回升到企業平均？只是Eve的銷售量推動了HAMR利潤率的提升嗎？然後，HAMR的長期毛利率目標是否仍在30%到33%之間？然後我還有一個問題想問Dave。

Yes. Well, I would say right now, we are very happy with how we are progressing with HAMR. As we said in the prepared remarks, we are shipping products for Qual, so right now, we don't have revenue coming from HAMR. So it's not really impacting our gross margin. But we think, of course, in the future, 3 terabyte per disk or 3.5 terabyte per disk and 4 Terabytes per disk, those are very interesting propositions for our customers, and we think will be actually a very profitable gross margin improvement for Seagate, which is why this product is so important to us. And in general, in the longer term for the entire industry.

是的。我想說的是，目前我們對HAMR的進展非常滿意。正如我們在準備好的發言中所說，我們正在為Qual出貨產品，所以目前我們沒有來自HAMR的收入。所以它對我們的毛利率沒有太大影響。但我們認為，未來每盤3TB、3.5TB和4TB的容量對我們的客戶來說都是非常有吸引力的方案，而且我們認為這實際上會為希捷帶來非常有利的毛利率提升，這就是為什麼這款產品對我們如此重要。總的來說，從長遠來看，對整個行業來說也是如此。

Got it. Got it. Very helpful. And then a follow-up for Dave. Sorry, just to come back to this SSD versus HDD dynamic. I agree with you that the NAND prices are unsustainably low. But if you look at like the last down cycle, the SSD prices are almost 8x higher than HDD on a per gigabyte basis. Now it's more like 2 to 4x. So that gap is definitely closing. So I'm kind of curious, when you talk to your cloud customers, is it a bigger -- how does that discussion progress? And is that a certain part of your weak pricing per terabyte? Or is it part of your weak demand from cloud customers? Or I'm just kind of curious about it.

明白了，明白了。非常有幫助。接下來是Dave的後續問題。抱歉，回到SSD和HDD的動態對比。我同意你的觀點，NAND的價格低到不可持續。但如果你看看上一個下行週期，SSD的每GB價格幾乎是HDD的8倍。現在大概是HDD的2到4倍。所以這個差距肯定在縮小。所以我有點好奇，當你和你的雲端客戶溝通時，這個差距是不是更大——討論進展如何？這是你們每TB定價疲軟的一定原因嗎？還是雲端客戶需求疲軟的原因？或者我只是有點好奇。

No, I would say when you get into mass capacity, the highest capacity points, I don't subscribe to the notion it's 2 to 4x. I think it's significantly higher than that. And we'll have an ability to continue to drive to better and better value propositions as we add more capacity per drive through the transitions that we're talking about. So what I would say is that right now, demand is low for everyone. And so what you see, the dynamics you see is just manufacturers trying to take some of their cash that they've tied up in inventory and turn it back into cash as quickly as possible. And if you start to look and say that's below cost or something like that, hopefully, people stop doing that and try to look for other options. And that's exactly how we're thinking about ourselves as well, right, to make sure you don't build.

不，我想說的是，當你談到大規模容量，也就是最高容量點時，我不認同那種只有2到4倍的說法。我認為應該要遠高於這個數字。隨著我們透過我們正在談論的轉型增加每個驅動器的容量，我們將有能力繼續推動越來越好的價值主張。所以，我想說的是，目前每個人的需求都很低。所以，你所看到的，你所看到的動態只是製造商試圖將他們被庫存套牢的部分現金盡快變現。如果你開始尋找並說這低於成本或類似的東西，希望人們停止這樣做，並嘗試尋找其他選擇。這正是我們對自己的看法，對吧，確保你不會繼續建造。

So I think in that kind of environment, it's really hard to extrapolate on trends, exactly to your point, Krish. I think some of these other things that we're comparing against are unsustainable. They're going to have to re-equilibrate at some point. I don't know exactly when that is. The more we push into the value chains, the more we push inventory in there, the more people will build buffers and then continue that. So I think that's one of the reasons why from our not hole in defense, we've continued -- we've decided to really pull back on our builds and reduce our footprint.

所以我認為在那種環境下，很難推斷趨勢，正如你所說，Krish。我認為我們正在比較的其他一些因素是不可持續的。它們必須在某個時刻重新平衡。我不知道具體是什麼時候。我們越深入價值鏈，就越能增加庫存，就會有越多的人建立緩衝，然後繼續這樣做。所以我認為這也是為什麼我們決定從防禦漏洞中真正減少建設並減少碳足跡的原因之一。

The next question comes from Toshiya Hari of Goldman Sachs.

下一個問題來自高盛的 Toshiya Hari。

I had one for Dave and then one quick one for Gianluca as well. So Dave, I know it's a bit of a black box, but I was hoping you could give kind of your assessment of nearline inventory -- or customer inventory in the nearline market relative to 6 months ago, 12 months ago, what's your view there? And when you compare and contrast what you're selling into the nearline space versus what's truly being consumed, what's the percentage delta at the moment?

我先問了戴夫一個問題，然後又快速問了詹盧卡一個問題。戴夫，我知道這有點像黑箱操作，但我希望你能評估一下近線庫存——或者說近線市場的客戶庫存，相對於6個月前或12個月前，你對此有何看法？當你將你在近線領域銷售的產品與實際消費的產品進行比較時，目前的百分比增量是多少？

Yes. It's actually an interesting thing because if I normally talk about inventory like distribution channel inventory, for example, I'll look at weeks of supply or something like that. But then that's -- is that based on the last 4 weeks or 13 weeks? I mean, if we base things on a couple of years ago, the demand is low and there's not too much inventory out there based on the run rates of number of drives that were a few years ago.

是的。這其實很有意思，因為通常我會談論庫存，例如分銷通路庫存，我會專注於供應週數之類的。但那——是基於過去4週還是13週的數據？我的意思是，如果我們以幾年前的數據為基礎，需求很低，而且根據幾年前的銷售量來看，庫存也不會太多。

Even on exabytes, the demand is fairly low -- or sorry, the inventory is fairly low. But I will say that most cloud service providers need to have some inventory around based on the data center populations they're -- the new data center buildouts they're doing and the refresh the spares that they need and things like that. So they normally need to have a few months of inventory anyway.

即使是EB級數據，需求也相當低——或者說，庫存相當低。但我想說，大多數雲端服務供應商都需要根據其資料中心規模——包括正在建造的新資料中心、更新所需的備件等等——儲備一些庫存。所以，他們通常需要儲備幾個月的庫存。

It's more than a few months right now, but it's not significantly more. And the gross number of drives is not huge, I think. So that's the way I think about it. The exabyte growth will be substantial coming some time and what we've got to do is just make sure we're not pushing any more into those chains. But I don't know if a good way to think about it is really 3 months or 6 months like we might want to say because if you go back 2 years historically on the number of drives that were being pulled by people, that's -- it's not really 6 months. It's probably more like 3.

現在看來，時間不只幾個月，但成長幅度並不大。而且我認為硬碟的總量也不算多。所以我就是這麼想的。 EB 等級的成長速度在未來某個時候會非常可觀，而我們要做的就是確保不再在這些鏈條中推進更多硬碟。但我不知道一個好的方法是不是真的要以 3 個月或 6 個月為單位，就像我們想說的那樣，因為如果你回顧過去 2 年人們取走的硬碟數量，那——實際上不是 6 個月。可能更接近 3 個月。

Got it. And then any view on sell-in versus end consumption? Or is that too hard to really see.

明白了。那麼，您對銷售和最終消費有什麼看法嗎？或者說，這真的很難看出來。

Yes, here's what I'd say is that we see a lot of the new drives, the higher capacity drives going into replacing lower capacity drives, obviously, but the lower capacity drives get put into other purpose applications as well. So I think drives are living longer, but there's still going to be demand for higher capacity drives, especially just the efficiency that you get out of that in the data centers. And then there's new data center buildout as well. So I actually think that this is not a problem of not needing any product. This is a problem of reshuffling priorities inside of the data centers and getting ready for the next level of data center expansion.

是的，我想說的是，我們看到很多新的硬碟，顯然，高容量硬碟正在取代低容量硬碟，但低容量硬碟也會被用於其他用途。所以我認為硬碟的使用壽命會更長，但對高容量硬碟的需求仍然會存在，尤其是在資料中心，高容量硬碟能帶來更高的效率。此外，還有新的資料中心的建設。所以我認為這實際上不是不需要任何產品的問題。這是一個資料中心內部重新調整優先級，為下一階段的資料中心擴張做好準備的問題。

That makes sense. And then Gianluca, on gross margins, longer term, obviously, you've had this target of 30% to 33%, if I'm not mistaken. You're obviously significantly below that today, but as you think about the path towards your long-term model over the next 4-8 quarters, given the reduction to manufacturing footprint that you're executing to, what sort of quarterly revenue run rate would you need to be at to be at that, call it, 30% range? I assume it's lower than where you were about a year ago, which was about $3 billion, a little bit below $3 billion.

這很有道理。然後，詹盧卡，關於毛利率，長期來看，如果我沒記錯的話，你的目標顯然是30%到33%。現在你的目標顯然遠低於這個數字，但考慮到未來4-8個季度如何實現長期目標，考慮到你正在實施的製造足跡縮減，你需要達到什麼樣的季度收入運行率才能達到30%的目標？我估計應該比一年前低，當時大約是30億美元，略低於30億美元。

Yes, of course, depends also from the mix and other factors. But as you said, we are taking a lot of cost actions. So what we also said last quarter is when we go back to the prior level of revenue that we picked at about $3 billion, we expect gross margin to be actually better than what it was at that time. So we are still confident in the medium and long term. We are taking actions to be even stronger when we come out from this down cycle. And we are executing our road map. We are executing all our cost reviews, and we think we are ready for the recovery of this up cycle when it comes.

是的，當然，這也取決於產品組合和其他因素。但正如您所說，我們正在採取許多成本控制措施。我們上個季度也說過，當我們的收入回到之前設定的約30億美元的水平時，我們預計毛利率實際上會比當時更好。因此，我們對中長期前景仍充滿信心。我們正在採取行動，力求在走出下行週期後更加強勁。我們正在執行我們的路線圖。我們正在進行所有成本評估，我們認為我們已經為迎接上行週期的復甦做好了準備。

And operator, I think we have time for 2 more questions.

接線員，我想我們還有時間回答另外兩個問題。

The next question comes from Sidney Ho of Deutsche Bank.

下一個問題來自德意志銀行的 Sidney Ho。

Great. So I have 2 quick ones, 1 on the HAMR side. It sounds like high volume is starting in early '24 to your plan. Can you give us any goalpost in terms of when you expect to hit a certain unit volume on a quarterly basis and maybe when you expect HAMR to be gross margin accretive, and maybe at what kind of volume level? And I have a follow-up.

好的。我有兩個問題想快速問一下，一個是關於HAMR的。聽起來，按照你們的計劃，高產量會在2024年初開始。能否透露一下具體目標，例如你們預計何時能達到季度銷售目標，以及HAMR何時能帶來毛利率的成長，以及達到什麼樣的銷售水準？我還有一個後續問題。

Yes. I think Sidney, our gross margins are going to come back based on demand. I don't know that we can really break it out based on HAMR transition right now because there's so many other dynamics. But we are aggressively filling the pipeline full of the product, working on the yields and scrap that we need to get down. Very, very confident in the technology. So thanks for the question. I would say we'll hit what I'll consider a significant volume ramp in early 2024. And then we're going to continue to ramp from there because we have that much confidence.

是的。 Sidney，我認為我們的毛利率會根據需求回升。目前，由於還有許多其他因素，我不確定我們能否真正根據HAMR的轉型來預測毛利率。但我們正在積極地補充產品線，努力降低良率和廢品率。我們對這項技術非常非常有信心。謝謝你的提問。我認為我們的產量將在2024年初達到一個顯著的成長點。之後，我們將繼續提升產量，因為我們對此充滿信心。

Okay. That's helpful. Maybe a follow-up question is on the demand side. It seems like you're more optimistic about the enterprise market as compared to the cloud market. Do you expect further correction in the enterprise market, maybe -- or maybe just a U-shaped recovery, considering comments from some of the storage OEMs seem to be quite subdued and it looks like they are just going through the domain collection in their -- it's still in the early stages for them.

好的。這很有幫助。也許後續問題是關於需求方面的。看起來您對企業市場比雲端市場更樂觀。您是否預期企業市場會進一步回調，或者可能只是U型復甦，考慮到一些儲存OEM廠商的評論似乎相當低迷，而且看起來他們只是在進行網域收集——這對他們來說還處於早期階段。

Yes. I think the only subtlety to your comment is I would say that my comments earlier were about inventory. There's just not too much inventory out there in those chains. So when we did start to see some recovery, I think there's room for the inventory to repopulate. I know -- to your point, I know that people are talking about a fairly subdued summer at least, maybe no recovery until the back half in there, and so we are watching that. I do think there's -- unlike some of the other markets where we look at maybe too much inventory to be digested, I don't think that's necessarily the case there. It's been managed better.

是的。我認為您評論的唯一微妙之處在於，我之前的評論是關於庫存的。這些連鎖店的庫存並不多。所以，當我們開始看到一些復甦時，我認為庫存還有補充的空間。我知道——正如您所說，我知道人們至少在談論一個相當低迷的夏季，可能要到下半年才會復甦，所以我們正在關注這一點。我確實認為——與其他一些我們認為庫存可能過多而無法消化的市場不同，我認為那裡的情況並非如此。那裡的管理已經更好了。

The next question comes from Ananda Baruah of Loop Capital.

下一個問題來自 Loop Capital 的 Ananda Baruah。

Just 2 quick ones, I'll ask them at the same time here. One might be more of a clarification. Dave, when you talk about you believe -- and it was the question about, I think, sort of sequential growth at some point later in the year. When you say towards the end of the year, you think demand will pick up again. Is that to say you think December quarter could see exabyte up sequentially. I guess, does that also mean the implications you think the September quarter would be down sequentially? And then I have a quick follow-up -- I'll leave that there and I have a quick follow-up.

我只想快速問兩個問題，我會在這裡同時問他們。一個問題可能更需要澄清。戴夫，你剛才說你相信——我認為，這個問題是關於今年晚些時候某個時候的環比增長。你說到年底，你認為需求會再回升。這是否意味著你認為12月季度EB級數據可能會較上季成長？我想，這是否也意味著你認為9月季EB級數據會季減？然後我有一個快速的後續問題——我就先說到這裡，我還有一個快速的後續問題。

Yes. I think -- Ananda thanks for the question. I think it's a little too early to guide. I mean I think we're still, frankly, digesting. We're just telling people what we're building. I do think at some point, exabytes pick up, of course, right? And if we want to think about the December quarter or something like that, that's fine because I think there should be some pickup, barring any other macro issues or something, but it's too early to guide, I think, very specific. What we're doing right now is curtailing the build.

是的。我想——Ananda，謝謝你的提問。我覺得現在下結論還太早。坦白說，我們還在消化。我們只是在告訴大家我們正在建造什麼。我確實認為，EB 容量在某個時候會回升，對吧？如果我們考慮 12 月季度或類似的情況，那沒問題，因為我認為應該會有所回升，除非出現其他宏觀問題或其他情況。但現在下結論還為時過早，而且非常具體。我們現在正在做的是減少建置。

And the quick follow-up is on the BIS dynamics, is there a revenue impact we should take into account now as well with that invested?

接下來的快速跟進是關於 BIS 動態，我們現在是否也應該考慮投資對收入的影響？

No, no revenue impact.

不，對收入沒有影響。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議交還給管理階層，請大家發表最後發言。

Thanks, Andrea. As you heard today, Seagate's acting with speed and agility to manage through a tough near-term market environment. At the same time, we're executing our strong mass capacity product road map that positions us to serve our customers and improve Seagate's financial performance. I just want to close by thanking all of our stakeholders for their ongoing support, and thanks for joining us today.

謝謝，安德里亞。正如大家今天所聽到的，希捷正以快速且靈活的行動來應對艱難的短期市場環境。同時，我們正在執行強大的大容量產品路線圖，這使我們能夠更好地服務客戶並提升希捷的財務表現。最後，我想感謝所有利害關係人一直以來的支持，也感謝大家今天加入我們。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演講，現在您可以斷開連接了。