Synaptics Inc (SYNA) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Synaptics Inc. third-quarter fiscal-year 2024 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Munjal Shah, Vice President of Investor Relations. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 Synaptics Inc. 2024 財年第三季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言人，投資者關係副總裁 Munjal Shah。請繼續。

Good afternoon and thank you for joining us today on Synaptics’ third-quarter, fiscal 2024 conference call. My name is Munjal Shah and I am the Head of Investor Relations. With me on today’s call are Michael Hurlston, our President and CEO, and Matt Padfield, our Vice President of Finance. This call is being broadcast live over the web and can be accessed from the investor relations section of the company’s website at synaptics.com. A copy of these prepared remarks and a supplemental slide presentation are posted on our investor relations website.

下午好，感謝您今天參加 Synaptics 2024 財年第三季電話會議。我叫 Munjal Shah，是投資人關係主管。參加今天電話會議的有我們的總裁兼執行長 Michael Hurlston 和我們的財務副總裁 Matt Padfield。此次電話會議正在透過網路進行現場直播，您可以透過該公司網站 synaptics.com 的投資者關係部分進行存取。這些準備好的評論的副本和補充幻燈片簡報發佈在我們的投資者關係網站上。

In addition to the Company’s GAAP results, management will provide supplementary results on a non-GAAP basis, which excludes share-based compensation, acquisition related costs, certain other non-cash, and recurring or non-recurring items. Please refer to the press release issued after market close today for a detailed reconciliation of GAAP and nonGAAP results. The information can be accessed from the investor relations section of the company’s website at synaptics.com. Additionally, during the course of this conference call, Synaptics will make forward-looking statements.

除了公司的 GAAP 業績外，管理層還將提供非 GAAP 基礎上的補充業績，其中不包括股權激勵、收購相關成本、某些其他非現金以及經常性或非經常性項目。請參閱今天收盤後發布的新聞稿，以了解 GAAP 和非 GAAP 業績的詳細調整表。這些資訊可以從該公司網站 synaptics.com 的投資者關係部分取得。此外，在本次電話會議期間，Synaptics 將做出前瞻性聲明。

Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. Although Synaptics believes our estimates and assumptions to be reasonable, they are subject to a number of risks and uncertainties beyond our control and may prove to be inaccurate. Synaptics cautions that actual results may differ materially from any future performance suggested in the Company’s forward-looking statements. We refer you to the Company’s current and periodic reports filed with the SEC, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, for important risk factors that could cause actual results to differ materially from those contained in any forward-looking statement. Synaptics expressly disclaims any obligation to update this forward-looking information. I will now turn the call over to Michael.

前瞻性陳述給出了我們目前對我們的財務狀況、經營業績、計劃、目標、未來業績和業務的預期和預測。儘管 Synaptics 認為我們的估計和假設是合理的，但它們受到許多我們無法控制的風險和不確定性的影響，並且可能被證明是不準確的。Synaptics 警告稱，實際結果可能與公司前瞻性聲明中建議的任何未來業績存在重大差異。我們建議您參閱本公司向 SEC 提交的當前和定期報告，包括我們最新的 10-K 表年度報告和 10-Q 表季度報告，以了解可能導致實際結果出現重大差異的重要風險因素任何前瞻性聲明中包含的內容。Synaptics 明確不承擔任何更新此前瞻性資訊的義務。我現在將把電話轉給邁克爾。

Thanks, Munjal. I’d like to welcome everyone to today’s call. This quarter, we delivered results that were in-line with expectations. Revenue, margin, and EPS met or were slightly above our prior guidance. Growth in core IoT offset seasonal weakness in mobile.

謝謝，蒙賈爾。我歡迎大家參加今天的電話會議。本季度，我們交付的業績符合預期。收入、利潤率和每股收益達到或略高於我們先前的指導。核心物聯網的成長抵消了行動裝置的季節性疲軟。

Over the last few months, we started building the foundation for our second driver of Core IoT growth, our line of embedded AI IoT processors. That initiative culminated in the launch of our Astra processor platform at Embedded World in Germany in April.

在過去的幾個月裡，我們開始為核心物聯網成長的第二個驅動力——嵌入式人工智慧物聯網處理器系列奠定基礎。這項舉措最終於 4 月在德國嵌入式世界博覽會上推出了我們的 Astra 處理器平台。

Astra is an AI-native IoT compute platform targeting a $20 billion plussilicon market opportunity for edge IoT devices. Running AI models on-device rather than in a data center gives devices security, power, and latency advantages. Synaptics differentiates by incorporating AI in every part of the flow, from chip development to software to the tool chain. In addition, with a novel gearing approach, we can deliver more inferences at any given system power level than competition.

Astra 是一個人工智慧原生物聯網運算平台，旨在為邊緣物聯網設備提供 200 億美元以上的矽市場機會。在設備上而不是在資料中心運行 AI 模型可為設備提供安全性、功耗和延遲方面的優勢。Synaptics 的獨特之處在於將人工智慧融入流程的每個部分，從晶片開發到軟體再到工具鏈。此外，透過一種新穎的傳動方法，我們可以在任何給定的系統功率水平上提供比競爭對手更多的推論。

We believe that the totality of our approach will make Synaptics the absolute leader when it comes to delivering AI processing solutions for IoT devices. With the Astra framework, which contemplates AI end-to-end, customers can bring their data to run on Synaptics AI reference models or bring their own AI models and optimize them to run efficiently and securely on Synaptics SoCs.

我們相信，我們的整體方法將使 Synaptics 在為物聯網設備提供人工智慧處理解決方案方面成為絕對的領導者。借助考慮端到端 AI 的 Astra 框架，客戶可以將其資料在 Synaptics AI 參考模型上運行，或引入自己的 AI 模型並對其進行最佳化，以便在 Synaptics SoC 上有效且安全地運行。

Customers don’t have to build a new AI model for every application increasing adoption, efficiency, and time to market. The Astra platform includes a family of processors, an open software platform, an AI development toolkit, and model framework as well as seamless wireless connectivity. The SL family of processors are AI enabled MPUs targeted for the edge and are our first products to be released under the Astra umbrella.

客戶不必為每個應用程式建立新的人工智慧模型，從而提高採用率、效率和上市時間。Astra 平台包括一系列處理器、開放軟體平台、人工智慧開發工具包、模型框架以及無縫無線連接。SL 系列處理器是面向邊緣的 AI 支援 MPU，是我們在 Astra 旗下發布的首款產品。

2 and 4 core versions are now sampling. The SR-series of processors are AI enabled MCUs and incorporate our pioneering gearing technique which actively manages power as inferencing requirements increase or decrease. A flexible, innovative software platform extends across both product families and supports Linux and Android as well as leading RTOS offerings. In addition, both families leverage the deep institutional knowledge at Synaptics around computer vision and audio machine learning algorithms.

2 核和 4 核版本現已提供樣品。SR 系列處理器是支援 AI 的 MCU，並採用了我們開創性的傳動技術，該技術可隨著推理要求的增加或減少而主動管理功率。靈活、創新的軟體平台涵蓋兩個產品系列，並支援 Linux 和 Android 以及領先的 RTOS 產品。此外，兩個家族都利用 Synaptics 在電腦視覺和音訊機器學習演算法方面深厚的機構知識。

The launch of the Astra family of processors at Embedded World was a great success with customer interest from a broad-based set of industries including automotive, consumer, industrial, security, and home appliances. Thousands of customers and developers visited our showcase, and the team generated a significant number of qualified customer leads.

Astra 系列處理器在 Embedded World 上的推出取得了巨大成功，引起了汽車、消費、工業、安全和家用電器等廣泛行業客戶的興趣。成千上萬的客戶和開發人員參觀了我們的展示，團隊產生了大量合格的客戶線索。

We hosted multiple technical presentations and a first of its kind hands-on embedded AI workshop for product designers, creating strong demand for the Astra development kit. To top it all off, Synaptics SL-series embedded compute processors received the Best in Show award ahead of solutions from several incumbent suppliers and competitors.

我們為產品設計師舉辦了許多技術演示和首個嵌入式人工智慧實作研討會，對 Astra 開發套件產生了強烈需求。最重要的是，Synaptics SL 系列嵌入式運算處理器領先於多家現有供應商和競爭對手的解決方案，並獲得了最佳展示獎。

Astra is an offshoot from our application-specific processors which are currently in volume production. We saw improvement in this part of Core IoT as inventory has generally returned to a more normal level. We had a major win at Deutsche Telekom for our video processors with AI capability which will contribute to revenue in 2025. In addition, we had a win on Cisco’s next generation AI-enabled collaboration devices with our high-end quad-core processor. In both wins, we were able to pull through wireless connectivity products, continuing our successful crossselling initiative.

Astra 是我們目前正在大量生產的特定應用處理器的一個分支。我們看到核心物聯網的這一部分有所改善，因為庫存已普遍恢復到更正常的水平。我們憑藉具有 AI 功能的視訊處理器在德國電信贏得了重大勝利，這將為 2025 年的收入做出貢獻。此外，我們也憑藉高階四核心處理器贏得了思科新世代支援人工智慧的協作設備。在這兩場勝利中，我們都能夠推出無線連接產品，繼續我們成功的交叉銷售計劃。

While Astra grabbed the headlines, our wireless products delivered the news, driving Core IoT revenue 26% higher compared to the prior quarter. Wireless product inventory has been worked down, except for a couple of SKUs. Design wins in wearables, security systems, home automation and action cameras are starting to ramp. We expect these trends to continue, driving sequential revenue growth in Core IoT next quarter.

在 Astra 佔據頭條新聞的同時，我們的無線產品也傳遞了這一消息，推動核心物聯網營收比上一季成長 26%。除幾個 SKU 外，無線產品庫存已減少。穿戴式裝置、安全系統、家庭自動化和運動相機領域的設計勝利開始增加。我們預計這些趨勢將持續下去，推動下季核心物聯網營收的環比成長。

In addition, we remain on track to sample both our first broad market device and Wi-Fi 7 device later this year. The enterprise & automotive products were roughly flat on quarter. However, next quarter, we expect to see growth in this piece of our business. The volume of our docking station products is beginning to increase again though demand is off historic norms.

此外，我們仍有望在今年稍後對我們的首款廣泛市場設備和 Wi-Fi 7 設備進行採樣。企業和汽車產品與季度基本持平。然而，下個季度，我們預計這部分業務將會成長。儘管需求超出歷史正常水平，但我們的塢站產品的數量再次開始增加。

In addition, our PC touchpad and fingerprint solutions are tracking to normal seasonal patterns, and we have opportunities to take some market share. Our HPD solutions are performing as expected and we continue to see opportunities to increase share as platforms start to refresh. Demand across the rest of the enterprise products is suppressed as IT spending on hardware and accessories continues to be at historically low levels with no signs of an uptick.

此外，我們的電腦觸控板和指紋解決方案正在追蹤正常的季節性模式，我們有機會佔據一些市場份額。我們的 HPD 解決方案的效能符合預期，隨著平台開始更新，我們繼續看到增加份額的機會。由於硬體和配件的 IT 支出持續處於歷史低點且沒有上升跡象，因此其他企業產品的需求受到抑制。

Further out in the calendar year, we keep hearing talk of a refresh cycle and new AI-PCs driving unit volume higher which would be good for us. However, we have yet to see orders consistent with anything like this. In Automotive, our TDDI products are seeing strong demand and performing better than expected. Our design-wins at several OEMs in North America and Europe including Audi, Chevy, Ford, Porsche, and Volkswagen are starting to ramp.

在接下來的一年裡，我們不斷聽到有關更新周期和新的人工智慧電腦推動單位銷量更高的討論，這對我們來說是件好事。然而，我們尚未看到與此類情況一致的訂單。在汽車領域，我們的 TDDI 產品需求強勁，且表現優於預期。我們在北美和歐洲的多家原始設備製造商（包括奧迪、雪佛蘭、福特、保時捷和大眾）的設計勝利開始增加。

Additionally, some other OEMs are extending their current models for another 1 to 2 years which benefits us given our high market share in these designs. The strength in our TDDI products is somewhat offset by a slowdown in legacy DDICs. Longer term, we would expect to increase content per car with SmartBridges and Wi-FI/BlueTooth combos.

此外，其他一些 OEM 正在將其當前型號再延長 1 到 2 年，鑑於我們在這些設計中的高市場份額，這對我們有利。我們 TDDI 產品的優勢在一定程度上被傳統 DDIC 的放緩所抵消。從長遠來看，我們希望透過 SmartBridges 和 Wi-FI/藍牙組合增加每輛車的內容。

Our Mobile products performed largely in line with our expectations and revenue was down from the prior quarter driven both by seasonality on our touch products and by a decline in revenue from our large legacy DDIC customer. As that product finally goes to zero, which we would expect at some point in the next fiscal year, it will present a headwind to fiscal 2025 Mobile revenue.

我們的行動產品表現基本上符合我們的預期，收入較上一季度有所下降，原因是我們的觸控產品的季節性以及我們大型傳統 DDIC 客戶的收入下降。隨著該產品最終降為零（我們預計在下一財年的某個時候），它將給 2025 財年的行動收入帶來阻力。

Aside from that, we expect our shipments to track seasonality for high-end Android phones. We see potential opportunities for further growth as the adoption of OLED technology expands into mid-tier phones. To summarize, we continue to be excited about our Core IoT business.

除此之外，我們預計高階 Android 手機的出貨量將跟隨季節性變化。隨著 OLED 技術擴展到中階手機，我們看到了進一步成長的潛在機會。總而言之，我們仍然對我們的核心物聯網業務感到興奮。

For the first time, Synaptics is selling differentiated general purpose products into large potential markets. Meanwhile, our traditional product lines, where we have leadership positions in smaller more defined markets, are beginning to recover as inventory burns off and demand slowly returns. The combination of the two gives us confidence as we enter our next fiscal year.

Synaptics 首次向龐大的潛在市場銷售差異化的通用產品。同時，隨著庫存消耗和需求緩慢回升，我們的傳統產品線（在更小、更明確的市場中擁有領導地位）正開始復甦。當我們進入下一個財年時，兩者的結合給了我們信心。

Before I pass the baton, I wanted to update progress on our CFO search. We have had discussions with dozens of highly qualified internal and external candidates. If all goes according to plan, we should have someone in place well before our next earnings call. Now, let me turn the call over to Matt for a review of our third-quarter financial results and fourth-quarter outlook.

在傳遞接力棒之前，我想更新一下財務長搜尋的最新進展。我們與數十名高素質的內部和外部候選人進行了討論。如果一切按計劃進行，我們應該在下一次財報電話會議之前就安排好人員。現在，讓我把電話轉給馬特，請他回顧我們第三季的財務表現和第四季的前景。

Thanks Michael, and good afternoon to everyone. I will first review the financial results for our recently completed quarter and then provide an outlook for our current quarter. Revenue for the March quarter was $237.3 million, which was slightly above the mid-point of our guidance. Revenue from Core IoT, Enterprise & Automotive, and Mobile were 20%, 57% and 23%, respectively.

謝謝邁克爾，大家下午好。我將首先回顧我們最近完成的季度的財務業績，然後提供當前季度的展望。三月季度的營收為 2.373 億美元，略高於我們指引的中位數。來自核心物聯網、企業與汽車以及行動的收入分別為 20%、57% 和 23%。

Year-over-year consolidated March quarter revenue was down 27%, but flat compared to the prior quarter, which reflects continued stabilization in our business. Core IoT revenue was up 26% sequentially, but down 49% year over year. We believe inventories are now at normal levels in this product sector and we expect to continue to see sequential growth in our fiscal fourth quarter.

3 月季度綜合收入年減 27%，但與上一季持平，這反映出我們業務的持續穩定。核心物聯網營收季增 26%，但年減 49%。我們認為該產品領域的庫存目前處於正常水平，預計第四財季將繼續實現環比成長。

In enterprise & automotive, March quarter revenue was down 1% sequentially and down 30% year over year. Several enterprise products are stabilizing though there are still pockets of excess inventory, which we expect to work through in the coming quarters. For the March quarter, our Mobile product revenue was up 33% yearover-year, but down 12% from the prior quarter mainly due to seasonality in our touch controller products for the android ecosystem.

在企業和汽車領域，3 月季度營收季減 1%，年減 30%。儘管仍有少量庫存過剩，但一些企業產品正在趨於穩定，我們預計這一問題將在未來幾季得到解決。3 月季度，我們的行動產品營收年增 33%，但環比下降 12%，主要是由於我們針對 Android 生態系統的觸控控制器產品的季節性。

Our legacy DDIC product sales were also down this quarter and we expect them to continue to decline over the next year. In fiscal year 2024, our primary customer for these products accounted for low to mid single digit percentage of the company’s total revenues.

本季我們的傳統 DDIC 產品銷售額也有所下降，我們預計明年將繼續下降。2024 財年，這些產品的主要客戶占公司總收入的中低個位數百分比。

During the quarter, we had one customer greater than 10% of revenue, at approximately 12%. For the March quarter, our GAAP gross margin was 46.5%, which includes $14.3 million of intangible asset amortization and $1.0 million of share-based compensation costs. March quarter non-GAAP gross margin was 52.9% in line with the midpoint of our guidance range.

本季度，我們有一個客戶佔營收的 10% 以上，約 12%。3 月季度，我們的 GAAP 毛利率為 46.5%，其中包括 1,430 萬美元的無形資產攤銷和 100 萬美元的股權激勵成本。3 月季度非 GAAP 毛利率為 52.9%，與我們指引範圍的中位數一致。

GAAP operating expenses in the March quarter were $127.7 million, which includes share-based compensation of $28.9 million and intangible asset amortization of $4.0 million. March quarter non-GAAP operating expense of $95.0 million was within our guidance range and up $3.0 million from the preceding quarter. Our prior quarter had a benefit from a partial reversal in the accrual for our bonus program.

三月季度的 GAAP 營運費用為 1.277 億美元，其中包括 2,890 萬美元的股權激勵和 400 萬美元的無形資產攤銷。3 月季度的非 GAAP 營運費用為 9,500 萬美元，在我們的指導範圍內，比上一季增加了 300 萬美元。我們的上一季受益於獎金計畫應計部分的部分逆轉。

We continue to maintain tight discipline around our operating expenses. During the quarter we recorded a GAAP tax benefit of $5.2 million and maintained our expected non-GAAP tax rate of 17%, creating a $4.3 million expense. March quarter GAAP net loss was $18.1 million or a GAAP net loss of $0.46 per basic share.

我們繼續對營運費用保持嚴格的紀律。本季度，我們實現了 520 萬美元的 GAAP 稅收優惠，並維持了 17% 的預期非 GAAP 稅率，從而產生了 430 萬美元的支出。3 月季度 GAAP 淨虧損為 1,810 萬美元，或每股基本股 GAAP 淨虧損 0.46 美元。

Non-GAAP net income in the March quarter was $21.0 million, a decrease of 7% from the prior quarter and a 72% decrease from the same quarter a year ago. Non-GAAP earnings per diluted share of $0.53 was above the mid-point of our guidance range.

3 月季度的非 GAAP 淨利潤為 2,100 萬美元，較上季下降 7%，比去年同期下降 72%。非 GAAP 攤薄每股收益為 0.53 美元，高於我們指引範圍的中點。

Now turning to the balance sheet. We ended the quarter with $829 million of cash, cash equivalents, and short-term investments, a 2% sequential decrease. Cash flow used in operations was $13.2 million due to approximately $27 million of tax payments associated with prior fiscal years.

現在轉向資產負債表。截至本季末，我們的現金、現金等價物和短期投資為 8.29 億美元，季減 2%。由於上一財年相關的稅款約為 2,700 萬美元，營運中使用的現金流為 1,320 萬美元。

Capital expenditures were $9.0 million and depreciation for the quarter was $6.8 million. Receivables at the end of March were $144.7 million and days of sales outstanding were 55 days, an increase of 7 days from the last quarter.

本季資本支出為 900 萬美元，折舊為 680 萬美元。3月底應收帳款為1.447億美元，應收帳款天數為55天，較上季增加7天。

Ending inventory balance was $114.1 million, down $11.0 million as we continue to cautiously manage our inventory purchases. Our calculated days of inventory on our balance sheet also declined to 91 compared to 99 at the end of the prior quarter.

由於我們繼續謹慎管理庫存採購，期末庫存餘額為 1.141 億美元，減少了 1,100 萬美元。我們計算的資產負債表上的庫存天數也從上一季末的 99 天下降至 91 天。

Now, let me turn to our June quarter outlook. Our business is seeing stabilization as we have worked down channel inventories across multiple product areas. However, we are seeing a slow recovery due to curtailed spending by enterprises on hardware products.

現在，讓我談談我們六月季度的展望。我們的業務正在趨於穩定，因為我們已經減少了多個產品領域的通路庫存。然而，由於企業在硬體產品上的支出減少，我們看到復甦緩慢。

At a consolidated level we anticipate revenue in the June quarter to be in the range of $230 million to $260 million, an increase of approximately 3% from the March quarter at the mid-point. Our Core IoT products are expected to benefit from the normalization of channel inventory levels, improving demand, and ramp of design-wins. We expect double-digit sequential revenue growth to continue in the June quarter.

在合併層面上，我們預計 6 月季度的營收將在 2.3 億美元至 2.6 億美元之間，比 3 月季度中位數成長約 3%。我們的核心物聯網產品預計將受益於通路庫存水準的正常化、需求的改善和設計獲勝的增加。我們預計第二季營收將繼續實現兩位數的環比成長。

Enterprise & automotive products in aggregate are expected to improve slightly in the June quarter. Mobile is expected to decline due to seasonality and declines in legacy products. Given these dynamics we expect our revenue mix from Core IoT, enterprise & automotive, and mobile products in the June quarter to be approximately 22%, 57% and 21%, respectively.

企業和汽車產品總體預計在六月季度略有改善。由於季節性和傳統產品的下降，預計行動業務將會下降。鑑於這些動態，我們預計 6 月季度來自核心物聯網、企業和汽車以及行動產品的收入組合將分別約為 22%、57% 和 21%。

We expect GAAP gross margin for the June quarter to be in the range of 44.5% to 46.5%. We expect non-GAAP gross margin in the range of 52.5% to 54.5%, a small improvement from the March quarter. We expect GAAP operating expenses in the June quarter to be in the range of $127 million to $132 million, which includes intangibles amortization and share-based compensation.

我們預計第二季 GAAP 毛利率將在 44.5% 至 46.5% 之間。我們預計非 GAAP 毛利率在 52.5% 至 54.5% 之間，較 3 月季度略有改善。我們預計第二季 GAAP 營運費用將在 1.27 億美元至 1.32 億美元之間，其中包括無形資產攤銷和股權激勵。

We expect non-GAAP operating expense in the June quarter to be in the range of $97 million to $101 million. GAAP net loss per basic share for our June quarter is expected to be in the range of $0.45 to $0.85. And non-GAAP net income per diluted share is anticipated to be in the range of $0.35 to $0.75 per share, on an estimated 39.9 million fully diluted shares.

我們預計第二季非 GAAP 營運費用將在 9,700 萬美元至 1.01 億美元之間。6 月季度的 GAAP 每股基本淨虧損預計在 0.45 美元至 0.85 美元之間。根據估計 3,990 萬股完全稀釋股票，非 GAAP 每股攤薄淨利潤預計將在每股 0.35 至 0.75 美元之間。

We expect both GAAP and non-GAAP net interest expense to be approximately $6.0 million in the June quarter. This wraps up our prepared remarks. I’d like to now turn the call over to the operator to start the Q&A session.

我們預計第二季 GAAP 和非 GAAP 淨利息支出約為 600 萬美元。我們準備好的演講到此結束。我現在想將通話轉給接線員以開始問答環節。

(Operator Instructions) Christopher Rolland, Susquehanna.

（操作員說明）克里斯多福羅蘭，薩斯奎哈納。

My question is inventory. For Core, you described it as more normal level. Would love to know what you see as the overhang going forward and then where inventory has most challenges and least challenges. That would be great to start.

我的問題是庫存。對於Core，您將其描述為更正常的等級。我很想知道您認為未來的突出問題是什麼，以及庫存挑戰最大和挑戰最小的地方。那就太好了。

Yeah. Hi, Chris, good to hear from you. I hope you're well. Thanks for the positive note. Generally speaking, I would say that as we said on the last call, inventory has been worked down. We feel that the challenge that we're largely facing, particularly enterprise is more demand related. As we were working through the inventory, I think demand fell and we have this challenge that we highlighted in the prepared remarks around enterprise spending for accessories and kind of small hardware, which is largely where we play.

是的。嗨，克里斯，很高興收到你的來信。我希望你一切都好。感謝您的正面說明。總的來說，我想說，正如我們在上次電話會議中所說，庫存已經減少。我們認為，我們面臨的挑戰，尤其是企業面臨的挑戰更與需求相關。當我們處理庫存時，我認為需求下降了，我們面臨著這一挑戰，我們在有關配件和小型硬體的企業支出的準備好的評論中強調了這一挑戰，這主要是我們所從事的領域。

There are still pockets of inventory. A couple of notable examples is in our audio headset business, our enterprise headsets, a little bit in our docking station area, particularly around our DisplayLink product line. But generally, I would say we're kind of out of inventory jail and we feel good and as demand returns, we should see a pull up in the numbers.

仍有少量庫存。幾個值得注意的例子是我們的音訊耳機業務、我們的企業耳機、我們的擴充座領域，特別是圍繞我們的 DisplayLink 產品線。但總的來說，我想說我們已經擺脫了庫存監獄的束縛，我們感覺良好，隨著需求的回升，我們應該會看到數量的增加。

Great. Thank you, Michael. And then just so we can kind of understand the legacy DDIC drag. Roughly how big was it in '24 and how big would you expect it in '25?

偉大的。謝謝你，麥可。這樣我們就可以了解傳統 DDIC 的阻力。24 年的規模大約有多大？

I think we called, Matt said in his remarks sort of a mid to low percentage of revenue. I think that we'll see a good part of that continue for the next couple of quarters. But probably by the second half of the year that will go down to a de minimis level, Chris. I mean it probably hits zero by the some part in the fourth quarter.

馬特在演講中說，我認為我們打電話的收入佔中低比例。我認為我們將在接下來的幾個季度看到這種情況的很大一部分持續下去。但克里斯，到今年下半年，這可能會降至最低。我的意思是，到第四季的某些時候，它可能會降到零。

So it's a drag, not a big one, but it's something that we thought we should call out. I think everybody's been aware of it for some time and it hasn't gone into our thinking around the numbers because we knew it was eventually going to go to zero. But I thought the time was right to highlight that it's coming off the table.

所以這是一個拖累，不是一個大拖累，但我們認為我們應該指出這一點。我想每個人都已經意識到這一點有一段時間了，但它並沒有進入我們對數字的思考，因為我們知道它最終會變成零。但我認為是時候強調這一點了。

Understood. Thank you very much, guys.

明白了。非常感謝你們，夥伴們。

Quinn Bolton, Needham & Company.

奎因·博爾頓，李約瑟公司。

Hey, Michael. Just thinking about the puts and takes between inventory kind of normalizing and soft demand. I mean, several quarters ago, I think you guys thought you might be under shipping end consumption by $100 million or more. Now that you're at the tail end of the inventory correction and guiding revenue up a smidge. It feels like consumption must be down meaningfully and I'm wondering if you had any updated thoughts on consumption.

嘿，麥可。只要考慮一下庫存正常化和需求疲軟之間的關係。我的意思是，幾個季度前，我想你們認為運輸終端消耗可能會低 1 億美元或更多。現在您正處於庫存調整的尾聲，並引導收入略有上升。感覺消費肯定會大幅下降，我想知道您對消費是否有任何最新的想法。

Should we be thinking something the $245 million is indicative of where consumption is across a good part of the enterprise IoT base? Or do you think consumption is higher than that given there are still some pockets of inventory out there that you just mentioned?

我們是否應該考慮 2.45 億美元是否顯示企業物聯網基礎的大部分消費？或者您認為消費量是否高於您剛才提到的仍有一些庫存的情況？

Yes, Quinn. No, look, I think that the natural demand is something significantly higher than where we are. I mean, we stated that a bunch of times. I think what sort of surprised us is we had two pieces moving in parallel. We had inventory and as we were working through the inventory, we also hit a low point in demand.

是的，奎因。不，我認為自然需求比我們現在的水平要高得多。我的意思是，我們已經說過很多次了。我認為讓我們感到驚訝的是我們有兩個部件並行移動。我們有庫存，當我們處理庫存時，我們也遇到了需求低點。

And so right now we think we're at a very low point in the natural demand and as enterprise spending returns, as automotive returns, we would expect to see a pull up in the numbers. So we don't believe by any stretch that sort of $245 million, $250 million , $255 million is where we should be.

因此，目前我們認為自然需求處於非常低的水平，隨著企業支出的回升，汽車的回升，我們預期數字將會上升。因此，我們無論如何都不認為 2.45 億美元、2.5 億美元、2.55 億美元是我們應該達到的水平。

We think that when demand normalizes and we think demand is still quite a bit lower than it would naturally be, we're going to see a pull up in our numbers. So I think the surprise again is as we work through the inventory situation, we hit a point where the current demand is far lower than we'd expect natural demand to be.

我們認為，當需求正常化並且我們認為需求仍然比自然水平低很多時，我們將看到我們的數字上升。因此，我認為再次令人驚訝的是，當我們處理庫存情況時，我們達到了當前需求遠低於我們預期的自然需求的程度。

Got it. Okay. That's pretty clear. And then I guess just thinking about signs of a recovery, what things are you sort of tracking that might point to a recovery? Is it kind of things like bookings backlog? Are the customers particularly interest rate sensitive and you think the demand might not turn until we get a rate cut hopefully later this year? What do you think the biggest factors might be, to kick start the demand in especially the enterprise segment, which seems to be softest?

知道了。好的。這很清楚。然後我想只要考慮一下復甦的跡象，你正在追蹤哪些可能表明復甦的事情？是不是像預訂積壓之類的事情？客戶是否對利率特別敏感，您認為在我們希望今年稍後降息之前需求可能不會轉變？您認為最重要的因素可能是什麼，以啟動似乎最疲軟的企業領域的需求？

Yeah, I think the first thing is obviously IT budgets going away from AI and to big compute, these large language models that are running in the data center and back toward PCs, monitors, docking stations, places where we have a presence.

是的，我認為第一件事顯然是 IT 預算從人工智慧轉向大計算，這些在資料中心運行的大型語言模型，然後又回到 PC、顯示器、擴充座以及我們存在的地方。

I think we talked about it with you in the last call. It seems a little bit counter because IT spending is flat or even slightly up if you look at the numbers. But the underlying detail is that the spending on gadgets, on PCs, on docking stations, on headsets, on enterprise telephony is clearly way down and the balance of the budget is going towards IoT. I'd say that's one thing.

我想我們在上次通話中與您討論過這個問題。這似乎有點相反，因為如果你看一下數字，IT 支出持平甚至略有上升。但潛在的細節是，在小工具、個人電腦、擴充座、耳機和企業電話上的支出明顯下降，而預算的平衡正在轉向物聯網。我想說這是一回事。

I think the second thing for us too is we've got a bunch of new product introductions that are beginning to kick in. We used as we talked to you about, we used the downturn to invest in the business to start running on our wireless platform. Some new docking station products are beginning to kick in. So we've got different parts of the portfolio that are going to start to ramp and that should even if demand remains soft, our NPI introduction should help us pull those numbers up.

我認為對我們來說第二件事也是我們已經開始推出一系列新產品。正如我們與您談論的那樣，我們利用經濟低迷時期投資了業務，開始在我們的無線平台上運作。一些新的塢站產品開始投入使用。因此，我們的投資組合的不同部分將開始增加，即使需求仍然疲軟，我們的 NPI 引入也應該幫助我們提高這些數字。

Maybe last clarification for me. The core IoT growing double-digits in June, I know it's still fairly low base. Do you think that double-digit growth rate continues in the back half of the calendar year?

也許是我最後一次澄清。六月核心物聯網成長了兩位數，我知道它的基數仍然相當低。您認為今年下半年會繼續維持兩位數的成長率嗎？

Yeah, certainly it's going to grow. I mean, we've been growing obviously very hot. We talked about double-digit growth in that business over an extended period of time. We're outgrowing that right now. So I would say it will grow. It certainly is going to grow. The growth rate is TBD and we haven't provided that guidance.

是的，它肯定會成長。我的意思是，我們顯然變得非常熱。我們討論了該業務在很長一段時間內的兩位數成長。我們現在已經超越了這一點。所以我想說它會成長。它肯定會增長。增長率待定，我們尚未提供該指導。

Okay. Thank you, Michael.

好的。謝謝你，麥可。

Kevin Cassidy, Rosenblatt Securities

凱文·卡西迪，羅森布拉特證券

Yeah, thanks for taking my question. As long as we're on the topic of wireless connectivity, the Wi-Fi standards, can you say what your revenue split is right now? And how quickly is Wi-Fi growing? And then my follow-up question will be around Wi-Fi7 and what are the forecasts for that as far as the adoption rate?

是的，謝謝你回答我的問題。只要我們談論無線連線、Wi-Fi 標準，您能說說您現在的收入分配是多少嗎？Wi-Fi 的發展速度有多快？然後我的後續問題將圍繞 Wi-Fi7 進行，就採用率而言，其預測為何？

Yeah, hey, Kevin, good to hear from you. Number one, we don't break it out. I think that now we've tried to give you and the rest of the folks that follow the stock a better look into the business by breaking out Core IoT. But within Core IoT, we certainly don't break out what's processors and what's wireless.

是的，嘿，凱文，很高興收到你的來信。第一，我們不會打破它。我認為現在我們試圖透過突破核心物聯網來讓您和其他關注該股票的人更好地了解該業務。但在核心物聯網中，我們當然不會區分什麼是處理器、什麼是無線。

I will say it's mostly wireless. I mean, today our processor line is there and we talked about some wins in that space in the prepared remarks. But generally, Wi-Fi is the story. Wi-Fi is doing well. We're getting that business back on track. It was plagued by quite a bit of inventory. And now we're starting to see that business come back in a fairly appreciable way. So we feel pretty good about that.

我會說它主要是無線的。我的意思是，今天我們的處理器系列已經上市，我們在準備好的評論中談到了該領域的一些勝利。但總的來說，Wi-Fi 才是最重要的。無線網路運作良好。我們正在讓這項業務重回正軌。它受到大量庫存的困擾。現在我們開始看到業務以相當可觀的方式恢復。所以我們對此感覺很好。

For us, you touched on it, you might have a different question around it when we get there. But Wi-Fi 7 is we haven't launched Wi-Fi 7. Wi-Fi 7 generally still isn't available from an infrastructure standpoint. Our biggest issue right now is actually transitioning the customer base from Wi-Fi 5 to Wi-Fi 6. And we've got a full suite of Wi-Fi 6 products. Our mix is still less than 50% on Wi-Fi 6. So we see a pretty significant opportunity to transition the customer base from Wi-Fi 4 and 5 to 6.

對我們來說，你談到了這個問題，當我們到達那裡時，你可能會有不同的問題。但Wi-Fi 7是我們還沒推出Wi-Fi 7。從基礎設施的角度來看，Wi-Fi 7 通常仍然不可用。我們現在最大的問題實際上是將客戶群從 Wi-Fi 5 過渡到 Wi-Fi 6。我們擁有全套 Wi-Fi 6 產品。我們的組合在 Wi-Fi 6 上的比例仍低於 50%。因此，我們看到了將客戶群從 Wi-Fi 4 和 5 過渡到 6 的非常重要的機會。

We will, as I said in the prepared remarks, be introducing a Wi-Fi 7 chip at the end of the year. And look, we think we're going to be first for an IoT class product that incorporates the Wi-Fi 7 standard. But I think that's going to be a while before it really grabs any sort of meaningful foothold.

正如我在準備好的演講中所說，我們將在今年年底推出 Wi-Fi 7 晶片。看，我們認為我們將成為第一個採用 Wi-Fi 7 標準的物聯網類產品。但我認為它還需要一段時間才能真正獲得任何有意義的立足點。

Okay, great. Thanks for that detail. And on the docking station, is enterprise is slow, but is there inventory on top of that? Does the inventory still have to be depleted? And we're just waiting for enterprise to come back and then it might still be a quarter or so before we see that business growing again?

好的，太好了。謝謝你的詳細資料。在擴充座上，企業速度很慢，但除此之外還有庫存嗎？庫存還得消耗完嗎？我們只是在等待企業捲土重來，然後可能還需要一個季度左右的時間才能看到業務再次成長？

Yeah. First, Kevin, it did grow. So I think we're coming off the bottom on dock. There still are pockets of inventory. I think I may have said to a previous question that we have kind of two halves of the business, as you know well, the DisplayLink and DisplayPort sides of the business.

是的。首先，凱文，它確實增長了。所以我認為我們正在從碼頭底部走出來。仍有少量庫存。我想我可能已經在回答先前的問題時說過，我們的業務分為兩部分，如您所知，即 DisplayLink 和 DisplayPort 業務。

The DisplayLink, which is the Dock Anywhere, has a bit more inventory that I think we need to work through. And that's a big piece of our gross margin profile. So that's been particularly slow. The DisplayPort side of the business, I think we're probably at equilibrium now. That's the piece that kind of grew on quarter.

DisplayLink，也就是 Dock Anywhere，有更多的庫存，我認為我們需要解決。這是我們毛利率的重要組成部分。所以速度特別慢。在 DisplayPort 業務方面，我認為我們現在可能處於平衡狀態。這就是按季度增長的作品。

And that's facing more of this demand challenge that I highlighted in Quinn's question, where we see pretty suppressed demand across the enterprise and automotive portfolio. As demand normalizes, we'd expect that docking business universally to pull back up.

這面臨著我在奎因的問題中強調的更多需求挑戰，我們看到整個企業和汽車產品組合的需求受到相當抑制。隨著需求正常化，我們預期對接業務將普遍回升。

Okay, understood. Thanks.

好的，明白了。謝謝。

Krish Sankar, TD Cowan.

克里斯·桑卡爾，TD·考恩。

Hi. Thanks for taking my question. Michael, I had two of them. First one on gross margins. You keep hearing about lagging as foundry vapor prices have come down, but you're not seeing any gross margin benefit for you. So I'm just curious, is your gross margin really tied to volume or in the Enterprise Auto segment or, is there something else going on?

你好。感謝您提出我的問題。邁克爾，我有兩個。第一個是毛利率。您不斷聽說鑄造蒸氣價格下降導致滯後，但您沒有看到任何毛利率優勢。所以我很好奇，你們的毛利率真的與銷量或企業汽車領域的銷售掛鉤，還是還有其他事情發生？

Yeah, Krish, fair question. I think there're two factors for us. One and the dominant factor is mix and we've you and I have talked about this a couple of times. And our mix for our gross margin profile, the enterprise and automotive is our strongest driver. And again, there's mixed issues within enterprise and automotive. But the slowest part right now of our E&A business is also our highest margin. That's comment one.

是的，克里什，這是一個公平的問題。我認為對我們來說有兩個因素。其中一個主導因素是混合，我們已經討論過這個問題好幾次了。我們的毛利率組合、企業和汽車是我們最強大的驅動力。同樣，企業和汽車領域也存在複雜的問題。但目前我們的 E&A 業務中最慢的部分也是我們利潤率最高的部分。這是評論一。

Comment two, I would agree with you that the foundry pricing seems to move a lot. We are partnered with one particular foundry guy. As you know, we kind of moved our strategy to be very, very heavily weighted toward one supplier. That one supplier has been the slowest to move on pricing.

評論二，我同意你的觀點，代工定價似乎變動很大。我們與一位特定的鑄造人員合作。如您所知，我們的策略轉變為非常非常重視一家供應商。該供應商在定價方面行動最慢。

So I would say that we are hearing the same things that you are that there are price, there's price relief across the semiconductor supply chain. I think that's less true with some of the bigger suppliers. And we are certainly partnered with one of the biggest and that particular supplier has been less apt to move and respond to kind of current pricing conditions.

所以我想說，我們聽到的和你們聽到的一樣，就是價格問題，整個半導體供應鏈的價格都有所下降。我認為對於一些較大的供應商來說情況並非如此。我們當然與最大的供應商之一合作，而該特定供應商不太願意採取行動並對當前的定價條件做出反應。

Got it. That's very helpful, Michael. And then a follow-up, thanks for some of the color you gave on the Astra platform. It seems like you've seen some Edge IoT devices for AI come out lately, but the issue seems to be around latency. From Astra's standpoint, do you require a smaller and more optimized AI model to run full inference on devices or you think the model sizes today, you can actually run full inference with no latency with your actual platform?

知道了。這非常有幫助，邁克爾。然後是後續行動，感謝您在 Astra 平台上提供的一些色彩。您似乎最近看到了一些用於人工智慧的邊緣物聯網設備，但問題似乎與延遲有關。從 Astra 的角度來看，您是否需要更小、更優化的 AI 模型來在設備上運行完整推理，或者您認為目前的模型大小實際上可以在實際平台上無延遲地運行完整推理？

Yeah, Krish, good again. Very good question. Look, I think on Astra, well the technology, we can't run large language models or gene sequencing or things like that. But within the 2 and 4 core portfolio, we can run a whole gamut of AI models. And those AI models are large in size. They come from a traditional AI source, such as an NVIDIA being trained in the data center.

是的，克里什，又好了。非常好的問題。聽著，我認為在 Astra 上，技術上，我們無法運行大型語言模型或基因定序或類似的東西。但在 2 核心和 4 核心產品組合中，我們可以運行全範圍的人工智慧模型。而且這些人工智慧模型的規模很大。它們來自傳統的 AI 來源，例如在資料中心接受訓練的 NVIDIA。

Our trick is we have a compiler that takes those models and compiles them into our code size. And at least as far as I understand it, and we've spent a lot of time on this with our division head, those models run without latency problems. And that's one of the advantages that we highlight in this business that we have very little latency, high security and high power efficiency across this product line. And that's one of the advantages we bring. Rather than having to go back and forth to the data center, you can run these AI models on chip. And obviously that has significant latency advantages.

我們的技巧是我們有一個編譯器來獲取這些模型並將它們編譯成我們的程式碼大小。至少據我了解，我們與部門負責人在這方面花費了大量時間，這些模型的運作沒有延遲問題。這是我們在該業務中強調的優勢之一，即我們整個產品線的延遲極低、安全性高且能源效率高。這就是我們帶來的優勢之一。您可以在晶片上運行這些人工智慧模型，而不必往返於資料中心。顯然，這具有顯著的延遲優勢。

Got it. Thanks, Michael. Thank you.

知道了。謝謝，麥可。謝謝。

Peter Pang, JPMorgan.

彼得龐，摩根大通。

Yeah, hey, thanks for taking my question. I have two as well. Just for the wireless portion in your Core IoT, it was kind of at that $200 million revenue run rate. I think where are we and are you still confident in getting back to those levels?

是的，嘿，謝謝你回答我的問題。我也有兩個。僅就核心物聯網中的無線部分而言，收入運行率就達到了 2 億美元。我想我們現在處於什麼水平，您是否仍有信心回到這些水平？

Yeah, Peter. No, we are obviously very confident in being able to get back to those levels. I think like we've been talking about with enterprise and automotive, there is a demand issue in the wireless. It's some of it's consumer facing. We actually have quite a bit of it that's enterprise facing.

是的，彼得。不，我們顯然非常有信心能夠回到這些水平。我認為就像我們一直在討論企業和汽車行業一樣，無線方面存在需求問題。其中一些是面向消費者的。實際上，我們有很多是企業面臨的。

Our inventory as we said in the prepared remarks is largely worked through. So now it's a little bit of a suppressed demand environment. We'd expect that we continue to work through that demand will return and when it does we'd expect that to go to $200 million and beyond.

正如我們在準備好的評論中所說，我們的庫存已基本完成。所以現在的需求環境有點被抑制。我們預計，我們繼續努力解決這一需求將會恢復，當它恢復時，我們預計該需求將達到 2 億美元甚至更多。

And then in addition as we talked about, we have a lot of new products, our new products that are coming online and we also have new design wins that are coming online. So the sum total of those obviously gives us a lot of confidence in that wireless business. We would expect we haven't seen that snap back to $200 million, but we'd expect to get there and beyond as time goes forward.

此外，正如我們所說，我們還有很多新產品，我們的新產品即將上線，我們也有新的設計成果即將上線。因此，這些總和顯然讓我們對無線業務充滿信心。我們預計這一數字不會迅速回升至 2 億美元，但隨著時間的推移，我們預計會達到甚至更高。

Great. Thank you. And then my thoughts on your mobile. So, that low-single-digit, that's like almost a $9 million to $10 million revenue drop off per quarter. And so you have and you talked about, potentially winning some in the mid-tier Android space and then you combine that with the Android recovery. So, like, as we kind of think about fiscal '25 for your mobile, is this going to be flat, down, up? Any indication would be helpful.

偉大的。謝謝。然後是我對你手機的想法。因此，這個低個位數的收入相當於每季營收下降近 900 萬至 1,000 萬美元。所以你已經說過，有可能在中階 Android 領域贏得一些勝利，然後你將其與 Android 的復甦結合在一起。那麼，就像我們在考慮 25 財年行動裝置的情況一樣，它會持平、下降還是上升？任何指示都會有幫助。

Yeah. Probably I would say too early to call. You got the puts and takes right. I mean, I think that in general, we'll be sort of a low-double-digits type of hole that we have to fill due to the DDIC socket. I think the numbers are about right, and we've talked about that on lots of different calls. So I think that you have the framing of it roughly correct.

是的。也許我會說打電話​​還太早。你的看跌期權和選擇權都是正確的。我的意思是，我認為一般來說，由於 DDIC 插槽，我們將成為必須填補的低兩位數類型的漏洞。我認為這些數字是正確的，我們已經在許多不同的電話會議中討論過這一點。所以我認為你的框架大致正確。

We are winning, we did really well last year with flipping one of the large Android customers over. We seem to be holding up really well in China. So our China handset business is very, very strong and we have high market share. We do as you called out, we expect to win now in the mid-tier. So the sum total of that. I would expect that on balance, flattish is probably where we end up in that business, but again, too early to sort of call.

我們正在獲勝，去年我們做得非常好，擊敗了一位大型 Android 客戶。我們在中國的表現似乎非常好。所以我們的中國手機業務非常非常強勁，我們擁有很高的市場份額。我們照你的要求去做，我們希望現在能在中游中獲勝。所以總和。我預計，總的來說，扁平化可能是我們在這項業務中的最終結果，但同樣，現在下結論還為時過早。

Great. Thank you, guys.

偉大的。謝謝你們，夥計們。

Thank you. I am showing no further questions at this time. I would now like to turn it back to Michael Hurlston, CEO for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請執行長 Michael Hurlston 致閉幕詞。

I'd just like to thank all of you for joining us today, and we look forward to speaking to you at our upcoming investor conferences during the quarter. Thanks a lot.

我謹感謝大家今天加入我們，我們期待在本季即將舉行的投資者會議上與您交談。多謝。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。