德州儀器 (TXN) 2016 Q1 法說會逐字稿

Good day and welcome to the Texas Instruments IQ (sic) 2016 earnings release conference. At this time, I'd like to turn the conference over to Dave Pahl. Please go ahead.

大家好，歡迎參加德州儀器 (TI) 2016 年財報發表會。此時，我想把會議交給戴夫·帕爾。請繼續。

Good afternoon and thank you for joining our first quarter 2016 earnings conference call. As usual, Kevin March, TI's Chief Financial Officer, is with me today. For any of you who missed the release, you can find it on our website at TI.com/IR.

下午好，感謝各位參加我們2016年第一季財報電話會議。像往常一樣，德州儀器財務長凱文馬奇今天和我在一起。如果您錯過了發布會，可以在我們的網站 TI.com/IR 上找到它。

This call is being broadcast live over the web and can be accessed through our website. A replay will be available through the web as well.

本次通話正在網路上進行現場直播，可透過我們的網站收看。比賽錄影也將在網路上播出。

This call will include forward-looking statements that involve risks and uncertainties that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today as well as TI's most recent SEC filings for a more complete description.

本次電話會議將包含前瞻性陳述，其中涉及風險和不確定性，可能導致德州儀器 (TI) 的表現與管理層目前的預期有重大差異。我們建議您查看今天發布的盈利報告中有關前瞻性聲明的通知，以及德州儀器 (TI) 向美國證券交易委員會 (SEC) 提交的最新文件，以獲取更完整的說明。

I'll start with a quick summary. Revenue for the quarter was in the upper half of our expected range. Compared with a year ago, notable market activity for our products included continuing strength in automotive as well as improvement in the industrial and communications equipment. Revenue was down 5% due to the weakness in personal electronics market, which declined as expected.

我先做一個簡要概述。本季營收處於我們預期範圍的上半部。與一年前相比，我們產品的市場活動表現顯著，汽車領域持續強勁，工業和通訊設備領域也有所改善。由於個人電子產品市場疲軟，營收下降了 5%，正如預期的那樣。

Our core businesses of Analog and Embedded Processing comprised 87% of first-quarter revenue. Analog revenue declined 8% while Embedded Processing revenue grew 8%. Earnings per share were $0.65.

我們的核心業務模擬和嵌入式處理佔第一季營收的 87%。模擬業務收入下降了 8%，而嵌入式處理業務收入成長了 8%。每股收益為 0.65 美元。

With that backdrop, Kevin and I will move on to the details of our performance, which we believe continues to be representative of the ongoing strength of our business model.

在此背景下，凱文和我將進一步詳細介紹我們的業績，我們相信這將繼續代表我們商業模式的持續優勢。

In the first quarter, our cash flow from operations was $547 million. We believe that free cash flow growth, especially on a per-share basis, is most important to maximizing shareholder value in the long term. Free cash flow for the trailing 12-month period was $3.7 billion, up 1% from a year ago.

第一季度，我們的經營活動現金流為 5.47 億美元。我們認為，自由現金流成長，尤其是每股自由現金流成長，對於長期實現股東價值最大化至關重要。過去 12 個月的自由現金流為 37 億美元，比上年同期成長 1%。

Free cash flow margin was 28.4% of revenue, up from 27.3% a year ago and consistent with our targeted range of 20% to 30% of revenue. We continue to benefit from our improved product portfolio and the efficiencies of our manufacturing strategy, the latter of which includes our growing 300-millimeter Analog output and the opportunistic purchase of assets ahead of demand.

自由現金流利潤率為收入的 28.4%，高於一年前的 27.3%，與我們設定的收入 20% 至 30% 的目標範圍一致。我們持續受益於不斷改進的產品組合和高效的製造策略，後者包括不斷增長的 300 毫米模擬輸出以及在需求出現之前抓住機會收購資產。

We believe that free cash flow will be valued only if it's returned to shareholders or productively invested in the business. For the trailing 12-month period, we returned $4.2 billion of cash to our investors through a combination of dividends and stock repurchases.

我們認為，只有將自由現金流回饋給股東或進行有效投資於企業經營，才能反映其價值。在過去的 12 個月裡，我們透過分紅和股票回購的方式向投資者返還了 42 億美元的現金。

Analog revenue decreased 8% from a year ago. The decline was primarily due to High volume Analog & Logic. Power Management and High Performance Analog also declined while Silicon Valley Analog grew. Embedded Processing revenue increased 8% from a year ago, due to growth in all three product lines led by Processors. Our investments in Embedded are translating into tangible results as this quarter's revenue is a record.

類比訊號收入比去年同期下降了 8%。產量下降的主要原因是類比電路和邏輯電路的產量大幅下降。電源管理和高效能類比電路業務有所下滑，而矽谷類比電路業務則有所成長。嵌入式處理業務收入較上年同期成長 8%，這主要得益於處理器業務帶動的三大產品線的成長。我們在嵌入式領域的投資正在轉化為實際的成果，本季的營收創下歷史新高。

In our Other segment, revenue declined 10% from a year ago primarily due to custom ASIC products. Compared with a year ago, distributor resales decreased 4% due to lower demand in personal electronics that I described earlier. Inventory increased a couple of days to about four-and-a-half weeks.

在其他業務板塊，由於客製化ASIC產品，營收年減了10%。與一年前相比，由於我前面提到的個人電子產品需求下降，經銷商轉售額下降了 4%。庫存週轉時間從幾天增加到大約四個半星期。

We believe this inventory level continues to reflect an environment of good product availability due to healthy TI inventories and stable lead times, which together drive high customer service metrics. As a reminder, inventory in our distribution channel has decreased over the past few years because of our consignment program.

我們認為，由於德州儀器 (TI) 庫存充足且交貨週期穩定，這項庫存水準持續反映出良好的產品供應環境，而這些因素共同推動了高客戶服務指標的提升。再次提醒大家，由於我們的寄售計劃，過去幾年我們分銷管道的庫存有所減少。

Now I'll provide some insight into this quarter's revenue performance by end market versus a year ago. Automotive demand remained very strong, driven by infotainment and hybrid electric vehicle and power train systems. Industrial demand strengthened broadly with most sectors growing. Within personal electronics, we had a portion of demand that declined about $150 million, as expected. Overall, personal electronics was down more than that, primarily due to mobile phones. Communications equipment was about even from a year ago, an improvement from last quarter when it was down about 15% and finally enterprise systems declined.

現在我將按終端市場對本季營收表現與去年同期進行比較分析。受車載資訊娛樂系統、混合動力車及動力系統等因素的推動，汽車需求依然非常強勁。工業需求全面走強，多數產業成長。正如預期的那樣，個人電子產品領域的需求下降了約 1.5 億美元。總體而言，個人電子產品的降幅更大，這主要是由於行動電話的下降。通訊設備與去年同期基本持平，較上一季下降約 15% 的情況有所改善，而企業系統則出現下滑。

We continued to focus on making our company stronger through manufacturing and technology, the breadth of our product portfolio, the reach of our market channels, and our diverse and long-lived positions. These four attributes, taken together, are at the core of what puts TI in a unique class of companies capable of long-term free cash flow growth.

我們繼續專注於透過製造和技術、擴大產品組合、拓展市場管道以及鞏固多元化和長期市場地位來增強公司的實力。這四個特點加在一起，正是德州儀器 (TI) 能夠實現長期自由現金流成長的獨特公司類別的核心所在。

Kevin will now review profitability, capital management and our outlook.

凱文接下來將審查獲利能力、資本管理和我們的前景。

Thanks, Dave, and good afternoon, everyone. Gross profit in the quarter was $1.82 billion and was 60.6% of revenue, a new record. From a year ago, gross profit margin increased 290 basis points, primarily due to lower manufacturing costs as well as the higher percentage of more profitable products. Operating expenses were $774 million, about even with the year-ago period.

謝謝你，戴夫，大家下午好。本季毛利為 18.2 億美元，佔營收的 60.6%，創歷史新高。與一年前相比，毛利率提高了 290 個基點，這主要是由於製造成本降低以及利潤更高的產品比例增加。營運支出為 7.74 億美元，與去年同期基本持平。

Over the last 12 months, we have invested $1.27 billion in R&D, an important element of our capital allocation. Acquisition charges were $80 million, all of which were the ongoing amortization of intangibles, which is a non-cash expense. Operating profit was $968 million or 32.2% of revenue. Operating profit was up 1% from the year-ago quarter.

過去 12 個月，我們在研發方面投入了 12.7 億美元，這是我們資本配置的重要組成部分。收購費用為 8,000 萬美元，全部為無形資產的持續攤銷，屬於非現金支出。營業利潤為 9.68 億美元，佔營收的 32.2%。營業利潤比去年同期成長1%。

Operating margin for Analog was 36.1%. Operating margin for Embedded Processing was 25.0%, 670 basis points higher than a year ago as we focused our investments on the best sustainable growth opportunities with differentiated positions. Net income in the first quarter was $668 million or $0.65 per share.

Analog 的營業利益率為 36.1%。嵌入式處理業務的營業利潤率為 25.0%，比一年前高出 670 個基點，因為我們將投資重點放在了具有差異化優勢的最佳可持續成長機會上。第一季淨利潤為 6.68 億美元，即每股 0.65 美元。

Let me now comment on our capital management results starting with our cash generation. Cash flow from operations was $547 million in the quarter. Inventory days were 137 as we staged our inventory for increased shipments in the second quarter. Also included were three to four days of inventory associated with the portion of the personal electronics market that started flowing late in the fourth quarter. We expect to ship this material later this year.

現在讓我來談談我們的資本管理業績，先從現金流產生狀況說起。本季經營活動產生的現金流量為5.47億美元。由於我們為第二季增加的出貨量做好了庫存準備，庫存週轉天數為 137 天。此外，還包括與第四季度末開始流通的個人電子產品市場部分相關的三到四天的庫存。我們預計將於今年稍後發貨。

Capital expenditures were $124 million in the quarter. On a trailing 12-month basis, cash flow from operations was $4.21 billion, up 4% from the same period a year ago. Trailing 12-month capital expenditures were $552 million or 4% of revenue.

本季資本支出為1.24億美元。過去 12 個月，經營活動產生的現金流為 42.1 億美元，比去年同期成長 4%。過去 12 個月的資本支出為 5.52 億美元，佔營收的 4%。

As a reminder, our long-term expectation is for capital expenditures to be about 4% of revenue, which include the expansion of our 300-millimeter Analog capacity. Free cash flow for the past 12 months was $3.65 billion or 28.4% of revenue. Free cash flow was 1% higher than a year ago. This growth reflects the continued strength of our business model.

再次提醒大家，我們的長期預期是資本支出約為收入的 4%，其中包括擴大我們的 300 毫米模擬產能。過去 12 個月的自由現金流為 36.5 億美元，佔營收的 28.4%。自由現金流比去年同期成長了1%。這一成長反映了我們商業模式的持續優勢。

As we've said, we believe free cash flow growth, especially on a per- share basis, is most important to maximizing shareholder value in the long term and will be valued only if it is returned to shareholders or productively reinvested in the business. As we've noted, our intent is to return 100% of our free cash flow, plus any proceeds we receive from exercises of equity compensation minus net debt retirement.

正如我們所說，我們認為自由現金流成長，尤其是每股自由現金流成長，對於長期最大化股東價值至關重要，只有當自由現金流返還給股東或進行有效的再投資於業務時，才能體現其價值。正如我們所指出的，我們的目標是返還 100% 的自由現金流，加上我們從行使股權激勵中獲得的任何收益，減去淨債務償還。

In the first quarter, we paid $383 million in dividends, and repurchased $630 million of our stock for a total of $1.01 billion. Total cash returned to shareholders in the past 12 months was $4.17 billion. Outstanding share count was reduced by 3.6% over the past 12 months and by 41% since the end of 2004 when we initiated a program designed to reduce our share count. These returns demonstrate our confidence in our business model and our commitment to return excess cash to our shareholders.

第一季度，我們支付了 3.83 億美元的股息，並回購了價值 6.3 億美元的股票，總計 10.1 億美元。過去 12 個月返還給股東的現金總額為 41.7 億美元。過去 12 個月，流通股數量減少了 3.6%，自 2004 年底我們啟動旨在減少流通股數量的計畫以來，流通股數量減少了 41%。這些回報顯示了我們對自身商業模式的信心，以及我們致力於將盈餘現金回饋給股東的承諾。

Fundamental to our commitment to return cash are our cash management and tax practices. We ended the first quarter with $2.80 billion of cash and short-term investments with our U.S. entities owning 80% of our cash. Because our cash is largely onshore, it is readily available for a variety of uses.

我們實現現金回報承諾的根本在於我們的現金管理和稅務實務。第一季末，我們擁有 28 億美元的現金和短期投資，其中 80% 的現金由我們的美國實體持有。由於我們的現金主要存放在境內，因此可以隨時用於各種用途。

Our orders in the quarter were $3.09 billion, down 4% from a year ago.

本季我們的訂單金額為 30.9 億美元，比去年同期下降 4%。

Turning to our outlook, for the second quarter we expect revenue in the range of $3.07 billion to $3.33 billion and earnings per share to be in the range of $0.67 to $0.77. Acquisition charges, which are non-cash amortization charges, will remain about even and hold at about $80 million per quarter through the third quarter of 2019. They will then decline to about $50 million per quarter for two additional years.

展望未來，我們預計第二季營收將在 30.7 億美元至 33.3 億美元之間，每股收益將在 0.67 美元至 0.77 美元之間。收購費用（非現金攤銷費用）將保持基本持平，到 2019 年第三季度，每季度約為 8,000 萬美元。之後兩年，他們的季度收入將下降到約 5,000 萬美元。

Our expectation for our annual effective tax rate in 2016 is about 30% and this is the tax rate you should use for the second quarter and for the year.

我們預計 2016 年的年度實際稅率約為 30%，這是您在第二季和全年應使用的稅率。

So in summary, we believe our first-quarter results demonstrate the strength of our business model. And with that, let me turn it back to Dave.

總而言之，我們認為第一季的業績證明了我們商業模式的優勢。那麼，現在讓我把鏡頭還給戴夫。

Thanks, Kevin. Operator, you can now open the lines up for questions. In order to provide as many of you as possible an opportunity to ask your questions, please limit yourself to a single question. After our response, we will provide you an opportunity for additional follow-up. Erica?

謝謝你，凱文。操作員，現在可以開放提問通道了。為了讓盡可能多的人有機會提問，請每個問題只提一個問題。在回覆您之後，我們將為您提供進一步跟進的機會。艾麗卡？

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

We'll go first to the line of Romit Shah. Please go ahead.

我們先來看羅米特·沙阿的那條線。請繼續。

Thank you and excellent results. Could you give us a little bit more color on what's driving the revenues in Q2 by end market?

謝謝，結果非常出色。能否詳細介紹一下第二季各終端市場營收成長的驅動因素？

Yes, Romit, we don't typically provide a forecast by end market; however, if there's any large shifts, we will talk about that, much like we did last quarter within a sector in personal electronics. I can say that that demand, we would expect to grow sequentially but it will be down significantly from a year ago. And I'd also say that outside of that we would expect the rest of our business to grow both sequentially and year-over-year.

是的，羅米特，我們通常不會按終端市場提供預測；但是，如果出現任何重大變化，我們會進行討論，就像我們上個季度在個人電子產品領域所做的那樣。我可以肯定地說，我們預計這一需求將逐週成長，但與去年同期相比將大幅下降。除此之外，我們預期公司其他業務也將環比和年成長。

Okay, and I know that the conversion of the 300-millimeter has been an important part of the improving margin profile and I was wondering if you could just update us on how much of the portfolio is converted to 300 and how much is left?

好的，我知道將 300 毫米鏡片轉換為 300 毫米鏡片是提高利潤率的重要組成部分，我想知道您能否告知我們投資組合中有多少鏡片已轉換為 300 毫米鏡片，還剩下多少？

Romit, I'll go ahead and talk to that. Roughly a quarter of our Analog revenue was generated on 300-millimeter last year. We have total internal capability of about $8 billion, so we're using about a quarter of that capability at this point in time.

羅米特，我會去跟他談談。去年，我們模擬業務收入的大約四分之一來自 300 毫米膠片。我們總共擁有約 80 億美元的內部產能，目前我們只使用了其中約四分之一的產能。

Just to remind everybody else who's listening, the reason the 300-millimeter is so important to us is really the economics at the factory level. We get about 2.3 times as many chips per wafer on a 300-millimeter versus a 200-millimeter. The wafer processing cost is about 1.4 times as much, so if you do the math, that means the actual die cost is only about 60% as much on a 300-millimeter wafer as a 200-millimeter wafer.

再次提醒各位聽眾，300 毫米對我們如此重要的原因，實際上是工廠層級的經濟效益。與 200 毫米晶圓相比，300 毫米晶圓上每片晶圓可獲得的晶片數量約為 2.3 倍。晶圓加工成本大約是 200 毫米晶圓的 1.4 倍，所以算下來，300 毫米晶圓的實際晶片成本只有 200 毫米晶圓的 60% 左右。

When you take that all the way through to finished goods, all things being equal, we wind up with a higher gross margin on those chips we manufacture on 300-millimeter, so that's increasingly important to us. As we look out in the future, again, we've got about probably $6 billion of growth capacity in 300-millimeter and we continue to increase our loadings in that space. In fact, on a year-over-year basis, we actually had more starts on 300-millimeter than we did a year ago.

從頭到尾，在成品生產過程中，如果所有條件都相同，那麼我們在 300 毫米製程上生產的晶片的毛利率會更高，因此這對我們來說越來越重要。展望未來，我們在 300 毫米口徑領域約有 60 億美元的成長潛力，我們將繼續增加在該領域的裝載量。事實上，與去年相比，我們今年在 300 毫米賽道上的起跑次數實際上比去年更多。

That's good. And I'll just add to Kevin's comment that as we reported last quarter, we qualified our second 300-millimeter fab which is DMOS 6 and we do have product running in that fab today. So thank you, Romit, and we'll go to the next caller, please.

那挺好的。我還要補充 Kevin 的評論，正如我們上個季度報告的那樣，我們的第二個 300 毫米晶圓廠（DMOS 6）已經通過認證，而且我們目前在該晶圓廠中確實有產品正在運行。謝謝你，羅米特，我們接下來請下一位來電者。

We'll take our next question from the line of John Pitzer.

接下來，我們將回答約翰‧皮策提出的一個問題。

Yes, good afternoon guys, solid execution as always. Kevin, I guess if you could talk a little bit about the Embedded Processing op margin improvements. If memory served me correct, when you got out of the Wireless business you didn't get out of all of the cost and you put a lot of that cost into the Embedded Processing market.

是的，各位下午好，一如既往地表現出色。Kevin，我想請你談談嵌入式處理業務利潤率的提升情況。如果我沒記錯的話，當你退出無線通訊業務時，你並沒有擺脫所有的成本，而是把其中很多成本投入了嵌入式處理市場。

If I look at the incremental op margin sequentially, it's greater than 60%. Are we sort of at a tipping point here with that's kind of the incremental op margin we should start to see about this business? And is there any reason why the Embedded op margin shouldn't converge with the Analog op margins over time?

如果我按順序查看增量營業利潤率，它大於 60%。我們是不是正處於一個轉折點，這大概就是我們應該開始在這個行業看到的增量營業利潤率了？隨著時間的推移，嵌入式運算裕量是否有任何原因不應該與模擬運算裕量收斂？

Yes, John, what you might recall is that a year ago we were still in the process of winding up some restructuring actions in the Embedded Processing segment. That finished about the middle of the second quarter, it was a little bit that bled over into the middle of the second quarter. And so consequently now we're seeing the benefit of those cost restructurings.

是的，約翰，你可能還記得，一年前我們還在進行嵌入式處理部門的一些重組工作。那場比賽大約在第二節中段結束，有點延續到了第二節中段。因此，我們現在看到了這些成本重組所帶來的好處。

The margin improvement that we'll see -- we're right at on this business now is a solid 25% operating profit in the quarter and that's really much closer to what we expect from that business segment. As you noted, we had about, quarter-over-quarter about a 62% fall through to operating profit from the revenue growth. And as we go forward, the focus of that division will be primarily on very solid cost containment and cost management but a lot of energy on growing the top line and growing revenue so that it can continue to drop through more profit as we go forward.

我們將看到的利潤率改善——我們目前預計該業務的季度營業利潤率將達到 25%，這與我們對該業務部門的預期非常接近。正如您所指出的，儘管營收成長，但我們的營業利潤環比下降了約 62%。展望未來，該部門的重點將主要放在非常穩健的成本控制和成本管理上，但同時也將投入大量精力來提高營收，以便在未來能夠透過更多的利潤繼續下降。

I won't attempt to characterize whether or not it achieves the same sort of levels as Analog, but we are confident there remains room of improvement in that overall P & L, primarily from continued cost containment and a drive towards revenue growth.

我不會嘗試去描述它是否能達到 Analog 那樣的水平，但我們相信，在整體損益方面仍有改進的空間，主要體現在持續的成本控制和推動收入成長方面。

Then you mentioned -- as my follow-up, you mentioned in your prepared comments some of the inventory growth you saw in the March quarter. Just kind of curious how long it takes to get that closer to trend. As you exit June would you expect to see days closer to your trend line or how should we think about that?

然後您提到——作為我的後續提問，您在準備好的評論中提到了您在三月季度看到的一些庫存增長。我只是有點好奇，要多久才能更接近趨勢。六月即將結束，您預期股價會更接近您的趨勢線嗎？或者我們應該如何看待這個問題？

Yes, what's actually interesting, John, is our dollars of inventory are actually down year-over-year. And as mentioned in prepared remarks, our days of inventory were up and that's up on the expectation of increased shipments in the second quarter and plus there's a few extra days that are inside that 1Q inventory as a result of the slowdown in personal electronics that we mentioned 90 days ago.

是的，約翰，真正有趣的是，我們的庫存金額實際上比去年同期下降了。正如我們在事先準備好的發言稿中提到的，我們的庫存週轉天數有所增加，這是由於預計第二季度出貨量將增加，此外，由於我們90天前提到的個人電子產品市場放緩，第一季的庫存中也增加了一些額外的周轉天數。

We expect that material is going to ship over the balance of the year and between the increased shipments in 2Q and the shipments of that personal electronics material, we'll see the days of inventory drift back down comfortably inside our model very similar to what we saw last year. If you go back and take a look last year, we were also a little bit higher in the first quarter, in anticipation of second quarter growth and then days drifted down as we came through the year.

我們預計材料將在今年剩餘時間內內陸續出貨，隨著第二季度出貨量的增加以及個人電子產品材料的出貨，我們將看到庫存天數在我們的模型中穩步下降，與去年的情況非常相似。如果回顧去年，我們第一季的營業額也略高一些，因為預期第二季會成長，然後隨著時間的推移，營業額逐漸下降。

Okay, thank you, John. Next caller, please?

好的，謝謝你，約翰。請問下一位來電者是誰？

We'll take our next question from Toshiya Hari.

接下來，我們將回答來自 Toshiya Hari 的提問。

This is Charles on for Toshiya. Your Q2 guide at the midpoint implies flat to down year-over-year growth. I'm wondering when you expect to return to growth and what the drivers of that will be?

這裡是查爾斯替托什亞報道。你們第二季業績指引的中點表明，年成長率將持平或下降。我想知道您預計何時恢復成長，以及推動成長的因素是什麼？

Yes, so I think if you look at the midpoint, you're right, that year-over-year growth would be down about 1%. As we talked about before, we, on a year-over-year basis, will still have the growth impacted due to the weakness inside of personal electronics. Outside of that, we expect to see our businesses growing both sequentially and year on year. And, again, I think that we're in a good position to capitalize on the trend of industrial and automotive.

是的，所以我覺得如果你看中間值，你是對的，年比增速會下降約 1%。正如我們之前討論過的，由於個人電子產品行業的疲軟，我們的年增長率仍將受到影響。除此之外，我們預計我們的業務將實現環比和同比雙成長。而且，我認為我們處於有利地位，可以充分利用工業和汽車產業的發展趨勢。

We think longer term that that's where the growth in our industry will come from. And just as a reminder, we had last year about 46% of our revenues driven by there, so we feel good with where our products are positioned.

我們認為，從長遠來看，這將是我們行業成長的來源。再次提醒大家，去年我們約 46% 的收入都來自那裡，所以我們對產品的市場定位感到滿意。

Got it. And then gross margin performance was strong in Q1. Outside of lower depreciation and incremental 300-millimeter revenues, where are the other factors that are going to drive upside from here?

知道了。第一季的毛利率表現強勁。除了折舊減少和 300 毫米機型帶來的額外收入之外，還有哪些因素會推動股價上漲？

Well, you hit the two important ones. So we had lower manufacturing costs year-over-year driven by, as you mentioned, lower depreciation and increased 300-millimeter wafer starts. But we also had a richer mix of overall products. As Dave mentioned in his prepared remarks, industrial was up very solidly for us and in the industrial space we enjoy a very nice mix of overall profitability.

嗯，你答對了兩個最重要的問題。正如您所提到的，由於折舊減少和 300 毫米晶圓開工量增加，我們的製造成本逐年降低。但我們的整體產品組合也更加豐富。正如戴夫在事先準備好的演講稿中提到的那樣，工業板塊對我們來說表現非常穩健，而且在工業板塊，我們整體盈利能力也相當不錯。

So you have that combination of events going on. And again to Dave's comments a moment ago, as we continue to see content growth in industrial and automotive, we would expect to continue to see an improvement in our mix from a profitability standpoint too as we look out over the quarters and years. So it's all coming together very nicely for us right now.

所以現在的情況是，這些事件同時發生。再次回應戴夫剛才的評論，隨著工業和汽車領域內容的持續增長，我們預計從盈利能力的角度來看，未來幾個季度和幾年內，我們的產品組合將繼續改善。所以目前一切進展都非常順利。

Okay, great, thank you, and we'll go to our next caller, please.

好的，太好了，謝謝，我們接下來接聽下一位來電者。

Our next question comes from the line of Stacey Rasgon.

我們的下一個問題來自 Stacey Rasgon 的問題。

Hi, guys, thanks for taking my questions. In the quarter, OpEx came in a little high. Was wondering if you could tell us the driver, what drove that, and what your thoughts are for OpEx for Q2?

大家好，感謝你們回答我的問題。本季營運支出略高。我想請您告訴我們驅動因素是什麼，是什麼原因導致的，以及您對第二季營運支出有何看法？

Yes, Stacy, OpEx did come in a little bit higher than what we had planned for. There really wasn't any one thing that drove that. There was just a number of small things that were being taken care of in the quarter.

是的，Stacy，營運成本確實比我們計劃的略高一些。其實並沒有什麼單一因素導致了這種情況。本季只需要處理一些零碎的小事。

As we look into second quarter, recall that 1Q includes about two months' worth of our annual pay and benefit increases, so as we look into Q2 you'll need to account for that, that we would have the full three months of pay and benefit increases. I'd expect the change quarter to quarter to be very similar to what you saw last year.

展望第二季度，請記住，第一季度包含了大約兩個月的年度薪資和福利成長，因此在展望第二季度時，您需要考慮到這一點，我們將有整整三個月的薪資和福利成長。我預計季度環比變化將與去年同期非常相似。

Got it, thank you; that's helpful. For my follow-up, I wanted to dig a little bit into the Comm infrastructure impact on both Embedded Processing as well as Other, so Embedded is up 8% year-over-year. You noted within your Other business that your custom ASICs are down year-over-year. I think both of those tend to be driven very highly by Comm infrastructure. Can you help us understand the differential between those two businesses? Is one of them eating the other, for example?

明白了，謝謝；這很有幫助。為了跟進，我想深入探討通訊基礎設施對嵌入式處理和其他領域的影響，結果顯示嵌入式處理年增了 8%。您在「其他業務」中提到，您的客製化ASIC晶片銷量較去年同期下降。我認為這兩者都很大程度上受通訊基礎設施的驅動。您能幫我們了解一下這兩家企業的差別嗎？例如，其中一個在吃另一個嗎？

Yes, so first let me talk about our Embedded business. So our Embedded business, as you remember, has three product lines inside of it. Microcontrollers and Processors are both about 45% of that revenue and Connectivity makes up about 10% of that revenue, so we saw growth in all three of those businesses, they all grew very nicely but it was led by Processors. So our communications infrastructure processors would be inside of that business, but we also sell automotive products that are inside of that business that drove that growth.

是的，那麼首先讓我談談我們的嵌入式業務。如您所知，我們的嵌入式業務旗下有三條產品線。微控制器和處理器各佔總收入的約 45%，連接業務佔總收入的約 10%，因此我們看到這三個業務都實現了成長，而且成長勢頭良好，但主要成長來自處理器業務。因此，我們的通訊基礎設施處理器屬於該業務範疇，但我們銷售的汽車產品也屬於該業務範疇，這推動了業務成長。

In the Other business, the custom ASIC business, I'll just say that we sell a different mix of products to customers, so it's not always the same. We've got some customers where we only sell both just Embedded and Analog into those customers. And that said, just as a reminder longer term, we do expect that the custom ASIC business will decline because that functionality is being absorbed into our SOCs inside of the Embedded business.

至於其他業務，也就是客製化 ASIC 業務，我只想說我們向客戶銷售的產品組合不同，所以情況並不總是相同的。我們有一些客戶，我們只向他們銷售嵌入式和模擬產品。也就是說，從長遠來看，我們預計客製化 ASIC 業務將會減少，因為該功能正在被我們嵌入式業務中的 SoC 所吸收。

Thank you.

謝謝。

We'll go to the next caller please.

請接聽下一位來電者。

Our next question comes from Blayne Curtis.

下一個問題來自布萊恩·柯蒂斯。

Hi, guys, thanks for taking my question. Could you just talk about the outperformance in gross margin? You said 300-millimeter. I was just curious what the utilization rates are? And as you look into Q2, it seems like guidance implies sustaining at that level. Just want to make sure that was right and what you're expecting to do with utilizations there.

大家好，感謝你們回答我的問題。能談談毛利率的優異表現嗎？你說的是300毫米。我只是好奇利用率是多少？展望第二季度，似乎業績指引暗示將維持在該水準。我只是想確認一下我的理解是否正確，以及您打算如何處理那裡的資源利用情況。

The utilizations actually haven't changed that much in a number of quarters and we don't expect it to change much in the next quarter or two either. The amount of wafers we're starting are pretty consistent as we go across the quarters. And, Blayne, you can kind of see that in when our days of inventory go up in 1Q as we're building for increased shipments in 2Q, that allows us to run the factories pretty close to similar utilizations quarter-over-quarter rather than ramping them up and down to meet the in-quarter demand. So I wouldn't expect utilization to change that much going into the next couple quarters, just as it hasn't in the last number of quarters.

近幾個季度以來，利用率實際上並沒有太大變化，我們預計未來一兩個季度也不會有太大變化。各季度我們開始生產的晶圓數量都相當穩定。布萊恩，你可以看出，當我們在第一季度增加庫存天數，為第二季度增加出貨量做準備時，這使我們能夠讓工廠的利用率在每個季度之間保持相當接近的水平，而不是為了滿足季度內的需求而頻繁地提高和降低產能。因此，我預計未來幾季的利用率不會有太大變化，就像過去幾季一樣。

And then as my follow-up, you had a correction in consumer as you pointed out. As you look into the back half of the year, you said you expected to sell-through, so do you expect your content in those types of applications to be roughly similar this year and therefore you should see a similar ramp like you did last year?

然後，作為我的後續問題，正如您所指出的，消費者方面需要進行更正。展望下半年，您曾表示預計會售罄，那麼您是否預計今年在這些類型的應用程式中的內容與去年大致相同，因此您應該會看到與去年類似的增長勢頭？

Yes, we haven't given color on how much content we have. I'll just say that when we do engage where we like to be able to engage inside of personal electronics are those types of products that will sell across multiple generations of products. And that's not always the case on every product we make an investment in, but that's where we want to steer our investment dollars. So we're confident that as we build that inventory we'll have demand in the back half. We won't try to predict at this point what that demand will look like.

是的，我們還沒有透露我們有多少內容。我只想說，當我們參與其中時，我們希望能夠參與個人電子產品領域，而這類產品是能夠跨越幾代產品銷售的。當然，我們投資的每個產品並非總是如此，但這正是我們希望將投資資金投入的方向。因此我們有信心，隨著庫存的增加，下半年市場需求將會成長。我們目前不會嘗試預測未來的需求狀況。

Thank you, Blayne, and we'll go to the next caller, please.

謝謝你，布萊恩，我們這就接下一位來電者。

Our next question comes from the site of Harlan Sur.

我們的下一個問題來自 Harlan Sur 網站。

Hi, good afternoon; thanks for taking my question. Another solid showing by the Embedded business. You pointed out particular strength in Processors. I think you guys talked about Comms as a driver there and maybe some automotive, but your MCU products also grew nicely year-over-year. Maybe you can just give us some insights on the end market/applications that drove the growth in that sub segment?

您好，下午好；感謝您回答我的問題。嵌入式業務再次表現穩健。您特別指出了處理器方面的優勢。我認為你們當時談到了通訊和汽車產業是主要驅動力，但你們的MCU產品也實現了逐年穩定成長。您能否為我們提供一些關於推動該細分市場成長的終端市場/應用的見解？

Yes, our MCU business is really a great business that we're building. And as you know, we've been investing in that business for some time. We've got and continue to invest both in TI-based architectures as well as ARM-based architectures and we've got customers that want to have both of those and we continue to be selective on where we make those investments. Part of the way that you differentiate those products is by having peripherals that are optimized for different types of applications.

是的，我們正在打造的MCU業務確實是一項非常棒的業務。如您所知，我們已經投資這家企業一段時間了。我們一直以來都在投資基於 TI 架構和基於 ARM 架構的產品，並且我們將繼續投資這些產品。我們的客戶希望同時擁有這兩種架構的產品，而我們也會繼續謹慎選擇投資方向。這些產品區分開來的部分原因是，它們的周邊設備針對不同類型的應用進行了最佳化。

We developed microcontrollers that are targeted for ultra low power battery-backed operations that will be infielded for, in some cases, decades, as well as very high-performance-based microcontrollers. And we've got very strong connectivity solutions, both wired but as well as wireless, and that crosses over into our Connectivity business that we've got there and we support over a dozen different interface or wireless standards inside of that business.

我們開發了針對超低功耗電池供電運作的微控制器，這些微控制器在某些情況下可在現場使用數十年，以及面向高效能的微控制器。我們擁有非常強大的連接解決方案，包括有線和無線連接，這與我們現有的連接業務相輔相成，我們在該業務範圍內支援十幾種不同的介面或無線標準。

So, again, very, very broad based and we really are encouraged by the results of that business. Do you have a follow-on?

所以，再次強調，業務範圍非常廣泛，我們對這項業務的成果感到非常鼓舞。您還有後續問題嗎？

Yes. Within the industrial markets, which was obviously an area of strength for you guys in the March quarter, you guys have talked previously about servicing like I think 14 different sub segments, so very broad. You've also talked about content gains in industrial, which is kind of a similar dynamic to the automotive segment. Any of those sub segments within industrial that are showing more of a bias towards more dollar content gains on a go-forward basis?

是的。在工業市場方面，這顯然是你們在三月季度的優勢領域，你們之前談到為大約 14 個不同的細分市場提供服務，非常廣泛。您也談到了工業領域的含量成長，這與汽車領域的動態有些類似。工業領域內有哪些細分產業在未來發展中更傾向於提高美元價值佔比？

Yes, I think the one nice thing about automotive is we can more easily identify what unit SAR growth is. And there's enough analysts that follow that market that we can track with the semiconductor content gain. And we think that there's probably somewhere around $350 on average that sells into an automotive. That's a number that's been growing very nicely.

是的，我認為汽車產業的一個優點是我們可以更容易地確定單位銷售收入的成長。而且有足夠多的分析師關注這個市場，我們可以追蹤半導體含量的成長。我們認為，平均而言，汽車銷售量可能在 350 美元左右。這個數字一直在穩步增長。

And when I look at that, that's probably about 1% of the average sales price of a car, so it's not too hard to imagine that that number will continue to grow and grow significantly over the future. When you contrast that to industrial and we think we are in the very early stages of maybe where we were three, five years ago in the automotive market with industrial, you really can't do that same type of analysis, unfortunately, because we've got 14 different sectors that we sell into.

我一看，這大概只佔汽車平均售價的 1%，所以不難想像，這個數字在未來會繼續大幅成長。與工業領域相比，我們認為我們在工業領域還處於非常早期的階段，就像三、五年前我們在汽車市場所處的位置一樣。遺憾的是，工業領域無法進行同樣的分析，因為我們有 14 個不同的產業領域需要銷售產品。

Underneath that there are literally hundreds of different end equipments that we track and develop solutions for and there's just a very, very wide variety of applications. So we can see it going on. And the beauty of it is it's not just one thing. It really is growth on a very broad basis. And I think that's reflected in our numbers, not only this quarter but it's been reflected in the numbers for a number of quarters now. So we really look forward to that opportunity in the future.

在此之下，我們追蹤並開發解決方案的終端設備實際上有數百種，應用範圍非常非常廣泛。所以我們可以看到這種情況正在發生。而它的妙處就在於它並非單一因素。這確實是一種非常廣泛的成長。我認為這已經反映在我們的數據中了，不僅是本季度，而且在過去幾季的數據中也已經有所體現。所以我們非常期待未來能有這樣的機會。

The next question comes from the line of Vivek Arya.

下一個問題來自 Vivek Arya 的提問。

Thanks for taking my question. One more on gross margins. Is the 60.6% the new baseline and we should model the flow through from this level or are there any mix benefits that are helping you in the first half that might reverse when the smartphone shipments start to ramp in the second half?

謝謝您回答我的問題。再補充一點關於毛利率的內容。60.6% 是新的基準線嗎？我們應該以此水準為基礎來模擬後續的流量嗎？或者說，上半年有哪些組合優勢在幫助你，但隨著下半年智慧型手機出貨量開始成長，這些優勢可能會逆轉？

Well, you'll have several things going on across that. That's a pretty tough call to make when we're trying to get too precise. We would expect industrial and automotive to continue to be a growing portion of our revenue over time. That's where we are focusing our attention, especially our R & D dollars. And we would also expect more starts as we look out into the future, proportionately more starts on 300-millimeter, which is lower cost wafers.

嗯，那方面會有好幾件事同時發生。當我們試圖做到非常精確時，這確實是一個很難做出的決定。我們預計，隨著時間的推移，工業和汽車行業在我們收入中的份額將繼續增長。這就是我們關注的重點，尤其是我們的研發經費。展望未來，我們也預期會有更多晶圓開工，其中 300 毫米晶圓的開工比例會更高，因為這種晶圓的成本更低。

We would also expect the depreciation declines that we've been seeing this past year to continue, albeit at a slower pace than what we've seen in the last few quarters. So those will give you tailwinds, so even if you do have some of these other products start back up, you have enough mix going on inside there that these margins that we're offering at right now are probably pretty representative of what the portfolio can do for our shareholders.

我們也預計，過去一年來我們看到的折舊下降趨勢將繼續下去，儘管速度會比過去幾季看到的要慢。所以這些因素會為你帶來順風，即使其他一些產品重新開始銷售，你內部也有足夠的產品組合，因此我們目前提供的利潤率可能相當能代表該投資組合能為股東帶來的收益。

Got it; very helpful, Kevin. And as my follow-up, you mentioned that sales growth in Q1 plus what you're guiding to Q2, excluding I don't recall whether you said personal electronics or just your largest customer, but sales growth is actually up year on year. Could you help us quantify what that growth trend is versus last year?

明白了，凱文幫了我大忙。作為我的後續問題，您提到第一季的銷售成長加上您對第二季的預測（我不記得您說的是個人電子產品還是只是您最大的客戶），銷售成長實際上比去年同期成長了。您能否幫我們量化一下與去年相比的成長趨勢？

Yes, Vivek, we aren't being that precise. We just wanted to give some color generally that where we had seen that headwind and the demand changing late in fourth quarter that that portion of our demand inside of personal electronics that we expect that it will grow sequentially, but be down significantly year-over-year. And we just haven't gotten more precise than that. Thank you, and we'll move on to the next caller, please.

是的，維韋克，我們沒那麼精確。我們只是想大致說明一下，我們在第四季度末看到了不利因素和需求變化，我們預計個人電子產品的需求部分將環比增長，但同比將大幅下降。我們目前還無法做到更精確。謝謝，我們接下來接聽下一位來電者。

Our next question comes from the line of Ross Seymore.

我們的下一個問題來自羅斯·西摩。

Thanks for letting me ask a question, guys. I guess the first question would be your first quarter came in at the high end of the range. Can you just talk about what was the positive surprise in the quarter and maybe associated with that, Dave, I think in the past you have given a sequential end-market performance to match what you've given and then year-over-year. If that helps to answer both questions, that would be great.

謝謝各位讓我提問。我想第一個問題應該是，你們第一季的業績是否達到了預期範圍的高端。戴夫，你能談談本季有哪些令人驚喜的正面因素嗎？或許與此相關的是，我認為你過去給出的季度終端市場業績與你給出的業績相符，然後又給出了同比業績。如果這樣能解答這兩個問題，那就太好了。

Okay. Yes, so, again, as we had said earlier, that portion of demand where we saw weakness came in about as we expected. The strength was more broad based. And we continued, obviously, to see strength in automotive and then the improvement in industrial and Comms equipment. So very, very broad based strength that we saw.

好的。是的，所以，正如我們之前所說，我們看到需求疲軟的那部分需求表現基本上符合我們的預期。這種優勢更加廣泛。顯然，我們繼續看到汽車行業的強勁勢頭，然後是工業和通訊設備的改善。我們看到了非常非常廣泛的實力。

So the second part of your question was, sequentially, what we saw from the trends. There, no surprise that automotive remained very strong and it was driven by infotainment as well as the hybrid electric and power train systems.

所以，你問題的第二部分是，按順序，我們從趨勢中看到了什麼。不出所料，汽車產業依然非常強勁，這主要得益於資訊娛樂系統以及混合動力和動力總成系統的發展。

Industrial, again, we had growth across almost every sector inside of industrial. Personal electronics down with most sectors declining. And Comms equipment was up sequentially. And that was the third quarter in a row that it actually grew. And then enterprise systems was up due to projectors. So did you have a follow-on, Ross?

同樣，工業領域幾乎所有行業都實現了成長。個人電子產品價格下跌，多數產業也出現下滑。通信設備依序啟動。這已經是連續第三個季度實現成長了。然後，由於投影機故障，企業系統也恢復了正常運作。羅斯，你還有後續問題嗎？

Yes, I'll make it quick. And you just talked about the Comms side, the third quarter in a row it's been up. Generally how do you think about that versus where we are now after burning a ton of inventory and now coming back. Are we to the point where we're shipping to end demand and now we can grow or shrink with that or is there some other dynamics going on?

是的，我會盡快完成。你剛才談到了通訊方面，已經連續三個季度成長了。總的來說，您如何看待這種情況與我們現在的情況，在消耗了大量庫存後又重新振作起來？我們是否已經達到能夠滿足最終需求的階段，並且可以根據需求進行成長或縮減，還是有其他因素在起作用？

Can you repeat the first part of the question because you cut out a little bit on our side.

你能重複問題的第一部分嗎？因為我們這邊少說了一點。

Sure, I'm sorry. So you said your Comms business was actually up for the third quarter in a row. Obviously that had fallen due to the end market before that. So the question is do you think you're back to shipping to end demand and what do you view to be the growth trajectory of that business longer term?

哦，對不起。所以你說你的通訊業務連續第三個季度實現了成長。顯然，在此之前，終端市場已經出現了下滑。所以問題是，您認為您是否已經恢復到直接面向終端需求的模式？您認為從長遠來看，這項業務的成長軌跡會是怎麼樣的？

Yes, thank you. I would say that that business, as you know, Ross, has always remained choppy. And we had a very strong period of growth going back a year ago, followed by the declines that we saw last year. It's just really tough to be able to predict what's going to happen in that market. And we just position product and inventory to be able to respond if that demand will continue to strengthen. And if it doesn't, we know how to react in that environment too.

是的，謝謝。正如你所知，羅斯，我認為那個行業一直動盪不安。一年前我們經歷了一段非常強勁的成長期，隨後出現了去年的下滑。預測那個市場會發生什麼事真的很難。我們調整產品和庫存佈局，以便在需求持續增強時能夠及時應對。如果情況並非如此，我們也知道在這種情況下該如何應對。

So it still continues to be a really good business for us. We continue to make investments in it and we just know that it will be choppy. Longer term, we don't view it as a market that will be a growth. We don't think that operators will take their CapEx spending up over the next five, 10, 15 years, but we do think there will continue to be shifts in how they spend that money, so we continue to make investments where we believe that growth will be in the future.

所以這對我們來說仍然是一項非常好的生意。我們會繼續投資，但我們也知道這不會一帆風順。從長遠來看，我們並不認為這是一個會成長的市場。我們認為營運商在未來五到十五年內不會增加資本支出，但我們認為他們花錢的方式會繼續發生變化，因此我們將繼續在我們認為未來會有成長的領域進行投資。

So thank you very much and we'll move to the next caller, please.

非常感謝，我們接下來請下一位來電者。

We'll take our next question from the site of Chris Danely.

下一個問題來自克里斯·丹尼利的網站。

Hey, thanks, guys. I apologize if these questions have been asked before. I got on here late. I was listening to Xilinx, slamming my head against my desk.

嘿，謝謝大家。如果這些問題之前有人問過，我深感抱歉。我上線晚了。我當時正在聽 Xilinx 的節目，一邊用頭猛撞桌子。

It sounds like you're guiding for a roughly seasonal or slightly below seasonal environment? If you could just compare now versus a quarter ago versus a year ago or the last six months, how you feel overall about the overall environment? Is it seasonal, a little below seasonal? Better than seasonal? Getting better, getting worse? Any comments there?

聽起來你們的嚮導服務環境大致處於季節性或略低於季節性？如果讓你將現在與一個季度前、一年前或過去六個月進行比較，你對整體環境的整體感受如何？是季節性的，還是略低於季節性？比季節性產品更好？情況好轉還是惡化？大家有什麼看法？

Well, I'd just make the observation that we believe we're just continuing to operate in a very similar macro environment that we've seen in the last few quarters and even in the recent year. And our guidance, obviously, is our best estimate of how we'll perform.

我想指出的是，我們認為我們目前所處的宏觀環境與過去幾季甚至最近一年所看到的非常相似。顯然，我們的指導意見是我們對自身表現的最佳預估。

So we try to stay away from making any precise comments on what a seasonal quarter looks like, as you know, Chris, because if you look at the numbers, there's usually a pretty wide variation on what an average would tell you that it would be. So, again, just a very similar macro environment to what we've seen. Do you have a follow-on?

所以，我們盡量避免對季節性季度的具體情況做出任何精確的評論，正如你所知，克里斯，因為如果你看一下數據，你會發現實際值與平均值之間的差異通常相當大。所以，宏觀環境與我們所看到的非常相似。您還有後續問題嗎？

Yes, real quick, just on channel inventory and distribution inventory. I think you said that channel inventory was up a couple days, around four and a half weeks. Do you expect channel inventory or just the inventory to go up again in Q2?

是的，就簡單說一下，關於通路庫存和分銷庫存。我想你說過渠道庫存增加了幾天，大約四個半星期。您預計第二季通路庫存還是普通庫存會再次上漲？

And if you could just give us the range that channel inventory/disty inventory has been in for the last, call it two or three years. Is this basically at the bottom or is it a little off the bottom or close to the peak or where would that be?

如果您能告訴我們過去兩三年內通路庫存/分銷庫存的範圍就太好了。這裡基本上位於底部，還是稍微偏離底部，或接近頂部，或者它應該在哪裡？

Well, as you know, we've, several years ago, implemented our consignment programs, so I think we still continue to learn what the right level in the channel will be. And I'd just say that if we could actually convert all of our shipments in distribution to consignment and carry that inventory ourselves, we would actually prefer to do that. So, if anything, we would encourage our distributors to take advantage of those programs.

如您所知，我們幾年前就開始實施寄售計劃，所以我認為我們仍在不斷學習管道中合適的水平是什麼。我只想說，如果我們能夠將所有分銷貨物都轉為寄售，並自行保管庫存，我們其實更願意這樣做。所以，如果可以的話，我們會鼓勵我們的經銷商利用這些項目。

We've operated, I'd say, around four weeks to four-and-a-half weeks, I think, for some time. That number probably somewhere in that range, even if it drifted up a little bit, it always depends on the product that's out there and the speed at which it turns. But we've got other peers that measure their inventory in months and not weeks, so we're very efficient on how we use that channel.

我想說，我們已經連續運作了大約四周到四周半的時間。這個數字可能就在這個範圍內，即使略有上升，也總是取決於市場上的產品及其變化速度。但我們的其他同行是以月而不是周來衡量庫存的，所以我們在使用這個管道方面非常有效率。

And it works out really well for both us and our distributor partners, so we feel very good about where that level is overall.

這對我們和我們的分銷合作夥伴來說都非常有利，所以我們對目前的水平感到非常滿意。

So thank you, Chris, and we'll go to the next caller, please.

謝謝你，克里斯，我們請下一位來電者接聽。

Our next question comes from Amit Daryanani.

下一個問題來自 Amit Daryanani。

Thanks a lot. I guess a question from me, I think the lower depreciation helped you guys on the gross margins, about 130 basis points year-over-year at least. Do you think that magnitude can sustain throughout calendar 2016 or should we think about depreciation dollars being more or less flat from these levels.

多謝。我想問一個問題，我認為較低的折舊對你們的毛利率有所幫助，至少比去年同期提高了約 130 個基點。您認為這種規模能夠持續到 2016 年底嗎？還是我們應該認為折舊金額將基本保持在這個水平？

Amit, I made the comment a few minutes ago that the rate of depreciation and decline that we have seen over the past year will slow down meaningfully as we go into 2016. Recall that from a capital spending standpoint our model is to spend about 4% of our revenues on CapEx, which we have been doing for the last couple of years and we expect to continue doing this year.

阿米特，我幾分鐘前說過，過去一年我們看到的貶值和下降速度，隨著我們進入 2016 年，將會顯著放緩。回想一下，從資本支出的角度來看，我們的模式是將收入的約 4% 用於資本支出，過去幾年我們一直這樣做，預計今年也將繼續這樣做。

Our depreciation runs more than 4%, so clearly they will have to converge at some point. Our depreciable life of most of our equipment is five years. And you may recall it was about five years ago when we brought on several new factories, one in Aizu, some equipment we brought into RFAB here in the Dallas area, and a factory we bought in China.

我們的折舊率超過 4%，所以很明顯，它們遲早會趨於一致。我們大部分設備的折舊使用壽命為五年。您可能還記得，大約五年前，我們引進了幾家新工廠，一家在會津，一些設備引進到達拉斯地區的 RFAB，還有一家我們在中國收購的工廠。

And so we're seeing those depreciation curves roll down now. So the rate of decline that we saw over the last few quarters this past year will slow down although it will still decline as we go into 2016.

因此，我們現在看到這些折舊曲線正在下降。因此，過去一年中最後幾季出現的下降速度將會放緩，儘管進入 2016 年後仍將繼續下降。

Got it. And if I can just follow up, I think you have about $1 billion of debt that's due in the month of May. Is the thought process to just pay that off with cash on hand or roll it forward? And what would that implication have for your interest expense line as you go forward?

知道了。如果我沒記錯的話，我認為你們五月有大約 10 億美元的債務到期。考慮是用手頭現金償還，還是把欠款延後償還？那麼，這對您未來的利息支出會有怎樣的影響呢？

Well, if we pay it off, the interest expense will clearly decline. But I expect that we'll probably do what we've done similarly in the last couple of cycles on this where we have -- if the interest rates are favorable by the time we go back into the market, we'll likely pay off a portion and roll the balance into a new issue. In either case, whether we pay off the entire amount or just pay off a portion and roll over the balance, I would expect interest costs will decline by several million dollars a quarter.

如果我們還清貸款，利息支出顯然會減少。但我預計，我們可能會像過去幾個週期一樣，採取類似的措施——如果到我們重返市場時利率有利，我們可能會償還一部分，並將餘額滾動發行新債券。無論我們償還全部欠款還是只償還一部分並將餘額展期，我預計利息成本每季都會減少數百萬美元。

Okay, thank you, Amit. And we'll go to the next caller, please.

好的，謝謝你，阿米特。我們這就接下一位來電者。

Tore Svanberg, your line is open.

Tore Svanberg，您的路線已接通。

So Silicon Valley Analog was up year-over-year and that's better than the industry, better than your peers. Was that mainly due to industrial and automotive strength or were there some share gains or other things going on there?

所以矽谷模擬電路的銷售額比去年同期成長了，比業界平均好，也比同業好。這主要是由於工業和汽車行業的實力增強，還是因為市場份額的成長或其他原因？

Yes, Tore, SVA does have a good exposure to both industrial and automotive and that certainly helped that business.

是的，Tore，SVA在工業和汽車領域都有很好的佈局，這無疑對該公司的業務有所幫助。

Okay, and as my follow-up for Kevin. Do you have a CapEx number for us for this year or should we just take 4% of whatever revenue we come up with?

好的，接下來我要跟進凱文的問題。你們能給我們今年的資本支出預算嗎？還是我們應該直接從我們最終的收入中拿出4%來支付？

Well, keep it simple. Just take 4% of your expected revenue number and you're going to be pretty close to what we're spending.

簡單點就好。只要取預期收入的 4%，就能大致估算出我們的支出金額。

Sounds good. Great job, thank you.

聽起來不錯。幹得好，謝謝。

Thank you, Tore. We'll go to the next caller, please.

謝謝你，托雷。請接聽下一位來電者。

We'll go next to the line of Ambrish Srivastava. Please go ahead.

接下來，我們將跟隨安布里什·斯里瓦斯塔瓦的腳步。請繼續。

Hi, thank you. I had a question on the automotive business, Dave. We haven't talked about the momentum that you guys seem to be witnessing here. Big sizeable business, bigger than your peers and year after year, just like the rest of the business, it's boring but it grows.

您好，謝謝。戴夫，我有個關於汽車產業的問題。我們還沒有談到你們似乎正在見證的這種發展勢頭。規模龐大的企業，比你的同業規模更大，而且年復一年，就像其他企業一樣，雖然枯燥乏味，但卻不斷發展壯大。

So the question I had was where are the new opportunities that you guys are now designed in and if we were to look at where automotive for TI was, say, a couple years ago, so what should we be thinking over the next couple of years? Thank you.

所以我的問題是，你們現在設計的新機會在哪裡？如果我們回顧一下幾年前德州儀器在汽車領域的發展狀況，那麼在未來幾年我們應該考慮什麼？謝謝。

Sure, Ambrish. The automotive business that we're building continues to be very, very broad based, so we've got strong participation in both Analog as well as Embedded. Inside of Embedded we've got both Processors and Microcontrollers, as well as even some Connectivity designs inside of that business.

當然可以，安布里什。我們正在建立的汽車業務仍然非常非常廣泛，因此我們在模擬和嵌入式領域都有很強的參與度。嵌入式系統內部既包括處理器和微控制器，甚至還包括一些連接設計。

From an Analog standpoint, it actually is very, very broad based. And one of the things that we've been focused on is broadening the number of business units that the company participates in in automotive. And I think if you went back five, 10 years ago, we might have had one or two business units participating in that marketplace. And today, out of our 70 or so different business units, I think over half of them actually ship products into that marketplace, so it's very, very broad based.

從模擬的角度來看，它的基礎其實非常非常廣泛。我們一直關注的事情之一就是擴大公司在汽車領域參與的業務部門數量。我認為，如果回到五到十年前，我們可能只有一兩個業務部門參與那個市場。如今，在我們大約 70 個不同的業務部門中，我認為超過一半的部門實際上都會向該市場發貨，所以它的基礎非常非常廣泛。

We've got five what we call sectors that make up the automotive market. And, again, the largest one is not more than mid-single digits as a percentage of our revenue last year. So they are -- the five segments are infotainment and cluster; passive safety; advanced driver assist systems or ADAS, as it's known; body electronics, which also includes lighting; and then the hybrid electric vehicle and power train. So we've seen growth across all of those sectors, very, very robust growth and a very broad range. So do you have a follow-on?

汽車市場由五個我們稱之為細分市場的部分組成。而且，最大的一筆支出占我們去年收入的百分比也不超過個位數。所以它們是－這五個部分分別是：資訊娛樂和儀錶板；被動安全；高級駕駛輔助系統（ADAS）；車身電子設備（包括照明）；以及混合動力電動車和動力系統。因此，我們看到所有這些行業都實現了成長，成長非常強勁，而且範圍非常廣泛。那你還有後續問題嗎？

No, that was it for me, Dave, thank you.

不，對我來說就到此為止了，戴夫，謝謝你。

Okay, Operator, we've got time for one more caller.

好的，接線員，我們還有時間再接最後一通電話。

Okay, we will take our final question from the line of William Stein.

好的，我們最後一個問題來自威廉史坦恩的名言。

Great; thanks for squeezing me in. Dave, around the middle of last year, I think was the first time you highlighted the potential for a 10% customer and maybe we've been sort of dancing around this point, but I wonder if you expect that that customer will repeat at a similar magnitude in this year?

太好了，謝謝你們擠出時間幫我。Dave，我記得大概是去年年中，你第一次強調了10%客戶的潛在價值，也許我們一直在迴避這一點，但我想知道你是否預期今年這個客戶會以類似的規模再次出現？

Yes, that's a projection that I won't make on today's call. I think that they and all of our customers -- we've got teams that work very, very hard to get products designed into. And with that largest customer, as we talked about before, we sell them hundreds of products. We participate in all of their major platforms. And, of course, the revenue would always be skewed to where they ship their products.

是的，我不會在今天的電話會議上做出這樣的預測。我認為他們以及我們所有的客戶——我們都有非常非常努力地工作，將產品設計融入產品中。正如我們之前提到的，我們向這位最大的客戶銷售數百種產品。我們參與了他們所有的主要平台。當然，收入也總是會與他們的產品出貨地密切相關。

And I think they publicly report that about two-thirds of their revenues would be in phones, so our revenues will mirror those types of shipments, so we've got good growth in automotive. We're seeing strengthening, a broad strengthening inside of industrial. And so that's a trend. We'll see how those trends continue for the balance of the year. There's a lot of time between now and the end of the year. And then we'll see what happens inside of personal electronics as well. So do you have a follow-up?

我認為他們公開表示，他們約三分之二的收入將來自手機，因此我們的收入將反映出這類出貨量，所以我們在汽車領域實現了良好的成長。我們看到工業內部正在全面增強。所以這是一種趨勢。我們將觀察這些趨勢在今年餘下的時間裡會如何發展。距離年底還有很長一段時間。接下來，我們將看看個人電子產品內部會發生什麼。那你還有後續問題嗎？

Yes, one on capacity, if I can. I'm wondering if you acquired any capacity as you do periodically and if there's any update on the planned fab closure in Scotland?

是的，如果可以的話，我會滿載運轉。我想知道你們是否像往常一樣收購了一些產能，以及蘇格蘭工廠計劃關閉是否有任何最新進展？

I'll go ahead and answer that one. We continued to acquire capacity. No new factories here lately, but we do continue to pick up equipment that was quite expensive new for pretty good prices when you buy them the way we buy them.

我來回答這個問題。我們持續擴充產能。最近這裡沒有新建工廠，但是我們確實繼續以相當優惠的價格收購一些原本價格昂貴的新設備，前提是你以我們這樣的方式購買。

As it relates to the closure of the factory in Scotland, just as a reminder, we expect that factory will not close before the end of 2018. As it has been with other factories in the past, when we close those things, it usually takes a couple years as you slowly do lifetime builds on the inventory and on certain other parts in those factories you'll re-qual into other existing factories. And that's just a multi-year effort. So it's progressing as planned. And we, again, don't expect it to actually complete until about the end of 2018.

關於蘇格蘭工廠的關閉問題，需要再次提醒大家，我們預計工廠在 2018 年底前不會關閉。就像過去其他工廠一樣，當我們關閉這些工廠時，通常需要幾年時間，因為你需要慢慢地對庫存進行終身生產，並且這些工廠中的某些其他零件將重新獲得認證，以便投入到其他現有工廠中。而這僅僅是一項需要數年時間才能完成的工作。所以一切都在按計劃進行。我們再次重申，預計該項目要到 2018 年底才能真正完工。

Thank you very much, Will, and thank you all for joining us. A replay of this call is available on our website. Good evening.

非常感謝威爾，也感謝各位的到來。本次通話的錄音可在我們的網站上觀看。晚安.

I would like to thank everybody for their participation. Please feel free to disconnect your line at any time.

感謝大家的參與。您可以隨時斷開線路。