德州儀器 (TXN) 2020 Q2 法說會逐字稿

Good day, and welcome to the Texas Instruments 2Q '20 Earnings Release Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Dave Pahl. Please go ahead, sir.

美好的一天，歡迎來到德州儀器 2Q '20 收益發布電話會議。今天的會議正在錄製中。此時，我想將會議轉交給 Dave Pahl 先生。請繼續，先生。

Thank you. And good afternoon, and thank you for joining our second quarter 2020 earnings conference call. For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being broadcast live over the web and can be accessed through our website. A replay will be available through the web.

謝謝。下午好，感謝您參加我們的 2020 年第二季度收益電話會議。對於錯過該版本的任何人，您可以在我們的網站 ti.com/ir 上找到它。此電話正在網絡上直播，可以通過我們的網站訪問。重播將通過網絡提供。

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.

此電話會議將包含前瞻性陳述，這些陳述涉及可能導致 TI 的結果與管理層當前預期存在重大差異的風險和不確定性。我們鼓勵您查看有關今天發布的收益發布中包含的前瞻性陳述的通知以及 TI 最近提交給美國證券交易委員會的文件，以獲得更完整的描述。

Our Chief Financial Officer Rafael Lizardi is with me today, and we'll provide the following updates. First, I'll start with a reminder of the framework we described during the April earnings call for how we'll navigate the COVID-19 economy. Next, I'll provide insight into the second quarter revenue results with more details than usual by end market, including sequential performance since it's more informative at this time. And lastly, Rafael will cover financial results, some insight into one-time items and our guidance for the third quarter.

我們的首席財務官 Rafael Lizardi 今天和我在一起，我們將提供以下更新。首先，我將首先提醒我們在 4 月份的財報電話會議上描述的關於我們將如何駕馭 COVID-19 經濟的框架。接下來，我將深入了解第二季度的收入結果，其中包含比平時更多的終端市場細節，包括連續表現，因為此時它的信息量更大。最後，Rafael 將介紹財務業績、對一次性項目的一些見解以及我們對第三季度的指導。

During the April call, we explained that we will use our three ambitions to drive our decisions as they are particularly helpful in uncertain times like we face with COVID-19. For decades, these ambitions have driven all decisions inside TI. They are: to act like owners who will own the company for decades; secondly, to adapt and succeed in a world that's ever changing; and third, to be a company that you're proud to be a part of and will be proud to have as a neighbor. When we pursue these ambitions, our employees, customers, communities and owners will all benefit.

在 4 月的電話會議上，我們解釋說，我們將利用我們的三個雄心壯志來推動我們的決策，因為它們在我們面臨 COVID-19 等不確定時期特別有幫助。幾十年來，這些雄心壯志推動了 TI 內部的所有決策。他們是： 像擁有公司幾十年的所有者一樣行事；其次，適應瞬息萬變的世界並取得成功；第三，成為一家讓您引以為豪的公司，並以此為鄰而自豪。當我們追求這些雄心壯誌時，我們的員工、客戶、社區和所有者都會受益。

While second quarter did not experience the depth of the decline we saw in the 2008 financial crisis, nonetheless, we remain cautious on how the economy might behave over the next few years.

雖然第二季度沒有出現我們在 2008 年金融危機中看到的嚴重下滑，但我們仍對未來幾年經濟的表現持謹慎態度。

As a reminder, in April, we provided a broader framework to help you understand how we'll operate through this environment. First, we will maintain high optionality with our operating plan so we can support customers, particularly during a time when their ability to forecast will be limited. Next, we'll maintain investments in R&D and in new capabilities like those for TI.com since they're five- to 10-year time horizon decisions and critical to building TI stronger. And finally, we will invest to ensure long-term manufacturing capacity, particularly for the 2022 to '25 time frame.

提醒一下，我們在 4 月份提供了一個更廣泛的框架，以幫助您了解我們將如何在這種環境下運作。首先，我們將保持運營計劃的高度選擇性，以便我們能夠為客戶提供支持，尤其是在他們的預測能力有限的時候。接下來，我們將繼續對研發和新功能（例如 TI.com 的功能）進行投資，因為它們是 5 到 10 年的時間範圍決策，對於使 TI 變得更強大至關重要。最後，我們將投資以確保長期的製造能力，特別是在 2022 年至 25 年的時間框架內。

Making decisions with our ambitions in mind will continue to serve us well. And that, coupled with the framework I just mentioned, should help you understand our actions. We are particularly pleased with our decision to maintain an operating plan that allowed us to maximize our optionality. During the second quarter, we were able to respond to unforecasted demand. We will continue to maintain this posture in the third quarter.

帶著我們的抱負做出決定將繼續為我們服務。而且，再加上我剛才提到的框架，應該可以幫助您了解我們的行動。我們對我們維持運營計劃的決定感到特別高興，該計劃使我們能夠最大限度地提高我們的選擇權。在第二季度，我們能夠應對未預料到的需求。我們將在第三季度繼續保持這種態勢。

Moving on, I will now provide some insight into our second quarter revenue. There are several key points that summarize what we're seeing in the market.

繼續，我現在將提供一些關於我們第二季度收入的見解。有幾個關鍵點總結了我們在市場上看到的情況。

First, overall, the weakness was primarily from the automotive market. Automotive was down about 40% sequentially and down over 40% compared to a year ago. To help appreciate this impact, excluding automotive, TI was up 8% sequentially and down 3% versus a year ago. The automotive market appears to have bottomed in May as North American and European assembly plants resumed operations.

首先，總體而言，疲軟主要來自汽車市場。汽車行業環比下降約 40%，與一年前相比下降超過 40%。為了幫助理解這種影響，不包括汽車，TI 連續增長 8%，比一年前下降 3%。隨著北美和歐洲裝配廠恢復運營，汽車市場似乎在 5 月份觸底。

Next, the industrial market was up about 2% sequentially and also up 2% from a year ago. There are end markets that are weak and others that are understandably strong, like medical. We do believe that some customers are trying to maintain strong inventory positions to limit exposure to any supply chain disruptions.

接下來，工業市場環比上漲約 2%，也比一年前上漲 2%。有些終端市場疲軟，有些終端市場強勢，這是可以理解的，比如醫療市場。我們確實相信，一些客戶正在努力保持強勁的庫存狀況，以限制供應鏈中斷的風險。

Personal electronics was up over 20% sequentially and up about 10% compared to a year ago. This can best be explained by work-from-home trends and TI being in a position to support unforecasted demand in the second quarter.

個人電子產品環比增長超過 20%，與一年前相比增長約 10%。這可以通過在家工作趨勢和 TI 能夠在第二季度支持未預測的需求來最好地解釋。

Next, communications equipment was up 20% sequentially but down 15% compared to a year ago. Within this market, it's important to note that Analog achieved sequential and year-over-year growth, while Embedded was down in both comparisons, following our planned decline in this portion of the business.

其次，通信設備環比增長 20%，但與一年前相比下降 15%。在這個市場中，重要的是要注意模擬實現了環比和同比增長，而嵌入式在這兩個比較中都下降了，因為我們計劃在這部分業務中下降。

Enterprise systems was up sequentially and year over year. This strength, similar to personal electronics, is best explained by work-from-home trends and TI being positioned to support unforecasted demand.

企業系統逐年上升。這種優勢類似於個人電子產品，最好的解釋是在家工作趨勢和 TI 定位於支持不可預測的需求。

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

Rafael 現在將審查盈利能力、資本管理和我們的前景。

Thanks, Dave, and good afternoon, everyone. Second quarter revenue was $3.2 billion, down 12% from a year ago. Gross profit in the quarter was $2.1 billion, or 64% of revenue. From a year ago, gross profit decreased due to lower revenue, and gross profit margin was even.

謝謝，戴夫，大家下午好。第二季度收入為 32 億美元，同比下降 12%。本季度毛利潤為 21 億美元，佔收入的 64%。與一年前相比，由於收入減少，毛利有所下降，毛利率持平。

Operating expenses in the quarter were $780 million, down 4% from a year ago and about as expected. On a trailing 12-month basis, operating expenses were 23% of revenue. Over the last 12 months, we have invested $1.5 billion in R&D.

本季度的運營支出為 7.8 億美元，同比下降 4%，與預期基本一致。在過去 12 個月的基礎上，運營費用佔收入的 23%。在過去的 12 個月裡，我們在研發上投入了 15 億美元。

Operating profit was $1.2 billion in the quarter, or 38% of revenue. Operating profit was down 18% from the year-ago quarter.

本季度營業利潤為 12 億美元，佔收入的 38%。營業利潤較去年同期下降 18%。

Net income in the second quarter was $1.4 billion, or $1.48 per share, which included a $0.33 benefit primarily for tax-related items that were not in our prior outlook. The benefit included $0.02 of restructuring charges to strengthen our Embedded business by focusing investments on the best opportunities for long-term growth.

第二季度的淨收入為 14 億美元，或每股 1.48 美元，其中包括 0.33 美元的收益，主要用於我們先前展望中未包含的與稅收相關的項目。收益包括 0.02 美元的重組費用，以通過將投資重點放在實現長期增長的最佳機會上來加強我們的嵌入式業務。

Let me now comment on our capital management results, starting with our cash generation.

現在讓我從我們的現金生成開始評論我們的資本管理結果。

Cash flow from operations was $1.7 billion in the quarter. Capital expenditures were $130 million in the quarter. Free cash flow on a trailing 12-month basis was $5.7 billion.

本季度運營現金流為 17 億美元。本季度的資本支出為 1.3 億美元。過去 12 個月的自由現金流為 57 億美元。

In the quarter, we paid $823 million in dividends and repurchased $882 million of our stock for a total return to owners of $1.7 billion. In total, we have returned $6.7 billion in the past 12 months, consistent with our strategy to return all free cash flow. Over the same period, our dividends represented 56% of free cash flow, underscoring their sustainability.

本季度，我們支付了 8.23 億美元的股息並回購了 8.82 億美元的股票，為所有者帶來的總回報為 17 億美元。在過去的 12 個月裡，我們總共返還了 67 億美元，這與我們返還所有自由現金流的戰略一致。同期，我們的股息佔自由現金流的 56%，凸顯了它們的可持續性。

Our balance sheet remains strong with $5 billion of cash and short-term investments at the end of the second quarter. In the quarter, we issued $750 million of debt with a coupon of 1.75% due in 10 years. This resulted in total debt of $6.8 billion, with a weighted average coupon of 2.77%. We have repaid $500 million of debt due in the second quarter, and we have no further debt due this year. We have $550 million of debt due in 2021.

我們的資產負債表依然強勁，第二季度末有 50 億美元的現金和短期投資。本季度，我們發行了 7.5 億美元的債券，票息為 1.75%，10 年到期。這導致總債務為 68 億美元，加權平均息票率為 2.77%。我們已經償還了第二季度到期的 5 億美元債務，今年我們沒有其他到期債務。我們有 5.5 億美元的債務將於 2021 年到期。

Regarding inventory, TI inventory dollars were up $133 million from first quarter, and days were 166, about as expected. Distribution-owned inventory declined again in second quarter by about $150 million, the seventh consecutive quarter of planned reductions as we continued the transition to have fewer distributors and bring more customers direct. Tactically and strategically, we are pleased. We have held total inventory dollars steady while increasing the percent of inventory held inside TI and therefore in fewer places. This enables us to continue to maintain short lead times and high availability to meet unforecasted customer demand.

關於庫存，TI 庫存美元比第一季度增加了 1.33 億美元，天數為 166 天，與預期相符。分銷庫存在第二季度再次下降約 1.5 億美元，這是連續第七個季度計劃減少，因為我們繼續轉型以減少分銷商數量並直接吸引更多客戶。在戰術和戰略上，我們很高興。我們保持了總庫存美元的穩定，同時增加了 TI 內部庫存的百分比，因此在更少的地方。這使我們能夠繼續保持較短的交貨時間和高可用性，以滿足不可預測的客戶需求。

For the third quarter, we expect TI revenue in the range of $3.26 billion to $3.54 billion and earnings per share to be in the range of $1.14 to $1.34.

對於第三季度，我們預計 TI 收入在 32.6 億美元至 35.4 億美元之間，每股收益在 1.14 美元至 1.34 美元之間。

Regarding our factory operating plan, as we have stated, we will maintain high optionality so we can continue to support customers' demand, particularly during a time when their ability to forecast may continue to be limited. We have informed our customers that lead times on our products remain short, and more than 40,000 products are available for immediate shipment on TI.com. Short lead times and high availability are important capabilities that allow us to continue to support our customers' near-term and unforecasted demand. Our product portfolio of mostly long-lived parts afford us to have a steady hand, and therefore, we will take a similar approach to our factory operating plan again in third quarter.

關於我們的工廠運營計劃，正如我們所說，我們將保持高度的選擇性，以便我們能夠繼續支持客戶的需求，特別是在他們的預測能力可能繼續受到限制的時期。我們已通知我們的客戶，我們產品的交貨時間仍然很短，並且有超過 40,000 種產品可在 TI.com 上立即發貨。交貨時間短和可用性高是重要的能力，使我們能夠繼續支持客戶的近期和不可預測的需求。我們的產品組合大多是長壽命零件，這讓我們有一個穩定的手，因此，我們將在第三季度再次對我們的工廠運營計劃採取類似的方法。

In closing, we continue to invest to strengthen our competitive advantages and in making our business stronger. History has shown us that it is in times like these when we can make the most strategic progress.

最後，我們繼續投資以增強我們的競爭優勢並使我們的業務更加強大。歷史告訴我們，正是在這樣的時代，我們才能取得最具戰略意義的進展。

With that, let me turn it back to Dave.

有了這個，讓我把它轉回給戴夫。

Thanks, Rafael. Operator, you can now open the lines for questions. (Operator Instructions) Operator?

謝謝，拉斐爾。接線員，您現在可以打開問題線路。（操作員說明）操作員？

(Operator Instructions) We'll take our first question from Stacy Rasgon with Bernstein Research.

（操作員說明）我們將從 Bernstein Research 的 Stacy Rasgon 那裡回答我們的第一個問題。

First question I have, you still mentioned that you think some of your industrial customers are trying to build, I guess, inventories and making sure that their own position is still strong. But if your lead times are short and you're building -- you have 40,000 products that are ready to ship, why would any of your customers actually have any need to pre-buy anything? And if so, do you think what you're seeing right now is maybe just more indicative of what the actual end demand state might look like? Like how do we square that circle?

我的第一個問題，你仍然提到你認為你的一些工業客戶正在努力建立，我猜，庫存並確保他們自己的地位仍然強大。但是，如果您的交貨時間很短並且您正在構建——您有 40,000 種產品準備發貨，為什麼您的客戶實際上需要預購任何東西？如果是這樣，您是否認為您現在看到的可能更能說明實際的最終需求狀態可能是什麼樣子？就像我們如何平方那個圓？

Yes, Stacy, it's a good question. I think as we've talked about last quarter, we saw some unusual order patterns as we talked about revenue running up really strong into March and things abating. They certainly didn't abate as we thought that they would. We saw supply constraints across the industry. And sometimes, as customers' orders -- as they look at building inventory, our visibility ends at their dock when we ship them products. So they may decide to build some finished good inventory, so we don't have visibility into that. So that's really not a number that we can look into a system to provide us that. It's really just more instinct and experience and also just talking to our field teams and getting input from that standpoint. So that's -- when we look at the numbers, that's what it's telling us.

是的，斯泰西，這是個好問題。我認為正如我們在上個季度所討論的那樣，我們看到了一些不尋常的訂單模式，因為我們談到收入在 3 月份非常強勁地增長並且情況有所減弱。他們當然沒有像我們想像的那樣減少。我們看到了整個行業的供應限制。有時，作為客戶的訂單——當他們查看庫存時，當我們向他們運送產品時，我們的可見性會在他們的碼頭結束。所以他們可能會決定建立一些成品庫存，所以我們對此一無所知。所以這真的不是一個我們可以研究系統來為我們提供的數字。這真的只是更多的直覺和經驗，也只是與我們的現場團隊交談並從那個角度獲得意見。所以這就是 - 當我們查看這些數字時，這就是它告訴我們的。

Yes, Stacy, just to add to that, a few comments. One, out of our 100,000 or so customers, I would guess 70,000 to 80,000 of those are in industrial, right? So it's frankly just difficult to draw conclusions with such a huge number of customers that have different idiosyncrasies in the way they behave. The other thing I would tell you is that if I'm a purchasing manager of one of these customers and I'm ordering 200 different parts for our board, are they really going to treat certain suppliers a little differently than others if they decided to build inventory to stock up and feel safer? Probably not, right? So that's another dynamic that maybe you should take into account.

是的，Stacy，只是補充一點，一些評論。第一，在我們大約 100,000 名客戶中，我猜其中有 70,000 到 80,000 名來自工業領域，對吧？因此，坦率地說，很難從數量眾多且行為方式各不相同的客戶中得出結論。我要告訴你的另一件事是，如果我是其中一個客戶的採購經理，我要為我們的董事會訂購 200 種不同的零件，如果他們決定這樣做，他們對待某些供應商的方式真的會與對待其他供應商的方式有所不同嗎？建立庫存以備貨並感覺更安全？可能不是，對吧？因此，這是您可能應該考慮的另一種動態。

And not in all cases, right?

並非在所有情況下，對嗎？

Right.

正確的。

Not in all cases. So there's probably some of that, and that's just the caution that we provide. You have a follow-up, Stacy?

並非在所有情況下。所以可能有一些，這只是我們提供的警告。你有後續行動嗎，史黛西？

Yes. I guess just to follow up on that a little bit, so if I look at kind of the trajectory you've had over the last few quarters, Q1, you were above seasonal; Q2 ex auto, you were above seasonal; your Q3 guide is kind of at the low end of the seasonal but kind of roughly. I mean so far, like at least outside of auto, it doesn't seem like the pandemic is having any real impact on you at all. I just find it a little surprising. I mean what are you hearing from your customers, if anything, as to that effect in terms of what they're seeing and the impact that the pandemic is having on the supply chain because as far as I can tell, it's not having much impact on you at all? I guess it's good.

是的。我想只是稍微跟進一下，所以如果我看一下你在過去幾個季度的軌跡，Q1，你超過了季節性； Q2 ex auto，你高於季節性；您的 Q3 指南有點處於季節性的低端，但大致如此。我的意思是到目前為止，至少在汽車之外，似乎這種流行病對你沒有任何真正的影響。我只是覺得有點意外。我的意思是你從你的客戶那裡聽到了什麼，如果有的話，關於他們所看到的影響以及大流行對供應鏈的影響，因為據我所知，它沒有太大影響在你身上嗎？我想這很好。

Well, I'll remind you that the number we've turned in was down 12%, right? So...

好吧，我會提醒你，我們上交的數字下降了 12%，對吧？所以...

Yes. But it was up 8% ex auto, right?

是的。但除汽車外，它上漲了 8%，對吧？

Correct. Yes. And unfortunately, we have to report the numbers with auto in, so that is the reality. Auto was down 40%, so that is real. And the auto manufacturers closed down because of COVID, so I wouldn't quite go so far to say that it didn't have an impact.

正確的。是的。不幸的是，我們必須使用自動輸入來報告數字，這就是現實。汽車下跌了 40%，這是真的。汽車製造商因 COVID 而倒閉，所以我不能說它沒有影響。

And if you look inside of that, you saw strength in some areas like the work-from-home trends, like PCs and tablets and servers from the inside of enterprise, right? So we're seeing some strength that's due to that, which is also driving that. So there's some things that are moving around that we saw. And the other thing that I'd -- if you look longer term, when we -- as we entered the year, as you know, I think we described back in January that we were seeing signs of stabilization with the fourth quarter results. As we had worked our way through the bottom of the cycle, we're starting to see those signs of stabilization. Now with those signs of stabilization, again, we just turned in a down 12% overall.

如果你從內部看，你會看到一些領域的優勢，比如在家工作的趨勢，比如來自企業內部的個人電腦、平板電腦和服務器，對吧？因此，我們看到了由此產生的一些力量，這也推動了這一點。所以我們看到了一些東西在四處移動。還有一件事——如果你從長遠來看，當我們進入今年時，正如你所知，我認為我們在 1 月份描述了我們看到第四季度業績趨於穩定的跡象。當我們努力度過週期的底部時，我們開始看到那些穩定的跡象。現在，有了這些穩定的跡象，我們再次整體下跌了 12%。

So those are the results, and we do have to report the numbers all in. But I think it is important we wanted to give the color of auto because that was the driver of the weakness from a year ago. So thanks, Stacy.

所以這些就是結果，我們確實必須報告所有數字。但我認為重要的是我們要賦予汽車顏色，因為這是一年前疲軟的驅動因素。所以謝謝，斯泰西。

We'll hear now from Vivek Arya with Bank of America.

我們現在將聽到來自美國銀行的 Vivek Arya。

I wanted to actually pick up from that point on automotive. I'm curious, Rafael or Dave, what you are expecting your automotive business to do in Q3 because when I look at your auto sales, I think you mentioned down over 40%. They are kind of in line with units. And I know just picking on one quarter is not representative of the trend, but some of your auto peers have said they benefited from content growth and so forth. So my question is what do you think about just the broader automotive market heading into Q3? And do you think you can start to get back to a point where you get some content growth on top of whatever unit recovery that we might see?

我想從那一點開始真正了解汽車。Rafael 或 Dave，我很好奇你們對你們的汽車業務在第三季度的預期是什麼，因為當我查看你們的汽車銷售時，我認為你們提到了超過 40%。它們有點符合單位。而且我知道只選擇四分之一併不能代表趨勢，但是您的一些汽車同行表示他們受益於內容增長等等。所以我的問題是，您如何看待進入第三季度的更廣泛的汽車市場？你認為你可以開始回到在我們可能看到的任何單位恢復之上獲得一些內容增長的地步嗎？

Yes. Yes, Vivek. I think that's a great clarification. So obviously, what we're reporting is just our shipments. When factories close, they stop taking product. You know that for our revenues overall, a large portion of our revenues overall are on consignment. So there's not inventory sitting between us and those manufacturing lines. In general, I described the automotive market as being a more mature supply chain. So those supply chains will react faster than, let's say, an industrial supply chain would perhaps. And so when those factories open back on, they begin to pull those units.

是的。是的，維維克。我認為這是一個很好的澄清。很明顯，我們報告的只是我們的出貨量。當工廠關閉時，他們停止接收產品。你知道，就我們的整體收入而言，我們整體收入的很大一部分是寄售的。所以我們和那些生產線之間沒有庫存。總的來說，我將汽車市場描述為一個更成熟的供應鏈。因此，這些供應鏈的反應速度可能比工業供應鏈更快。因此，當這些工廠重新開工時，他們就開始撤出這些單位。

So we won't try to predict what the overall market is going to do. We can measure when customers are pulling that demand. Our confidence in content growth three and five years from now in automobiles remains very high. And -- but just try to draw the dots of a cyclical recovery, we just won't spend time trying to do that. So do you have a follow-on?

所以我們不會試圖預測整個市場將要做什麼。我們可以衡量客戶何時拉動該需求。我們對未來三年和五年內汽車內容增長的信心仍然很高。而且 - 但只是嘗試繪製週期性複甦的點，我們只是不會花時間嘗試這樣做。那你有後續嗎？

Yes. So on the factory plan, I recall, Rafael, you mentioned that you expect your factory plan in Q3 to be the same as Q2. And we saw inventory go up in Q2. What do you think your inventory levels will do in Q3? And what I'm trying to do is try to align -- your Q3 guidance seems to be seasonal as was asked before. Even the range of outlook seems to be very in line with normal guidance. But your commentary seems to be more conservative. Certainly, visibility on the macro side seems to be a little more difficult. So I'm just trying to get a better sense for what does your plan for production in Q3 tell us about your visibility onto your end customers and the level of demand?

是的。所以關於工廠計劃，我記得拉斐爾，你提到你希望第三季度的工廠計劃與第二季度相同。我們看到第二季度庫存增加。您認為您的庫存水平在第三季度會怎樣？我想做的是嘗試調整——你的第三季度指導似乎是季節性的，就像之前被問到的那樣。甚至展望範圍似乎也非常符合正常指導。但你的評論似乎更保守。當然，宏觀方面的可見性似乎有點困難。所以我只是想更好地了解您在第三季度的生產計劃告訴我們您對最終客戶的可見性和需求水平？

Yes. No, sure. First, a couple of things. First, the environment continues to be uncertain. So I want to make sure that's clear. And we remain cautious how this economy will behave for the next several years, okay? So that is very, very important. That is part of the way we're looking at this.

是的。不確定。首先，有幾件事。首先，環境仍然不確定。所以我想確保這一點很清楚。我們對未來幾年經濟的表現保持謹慎，好嗎？所以這非常非常重要。這是我們看待這個問題的方式的一部分。

At the same time, we want to keep our optionality, maximize our optionality. And what that means is be able to meet unforecasted demand from our customers, like we just did in second quarter. And we plan to continue that in third quarter and beyond. The reason we can do that, strategically, we're just very well-positioned. The parts that we sell are -- tend to be -- the majority of them catalog parts, they sell to many, many customers, that last a long, long time. So if we end up building inventory, that inventory is not going to go bad. We don't have to scrap it. So that plays very well in our favor. Essentially, it's a very asymmetrical bet that we're making, where the upside is really high, the downside is limited. So we're going to continue operating that way.

同時，我們要保持我們的可選性，最大化我們的可選性。這意味著能夠滿足客戶無法預測的需求，就像我們在第二季度所做的那樣。我們計劃在第三季度及以後繼續這樣做。從戰略上講，我們能夠做到這一點的原因是我們處於非常有利的位置。我們銷售的零件——往往是——大部分是目錄零件，它們賣給很多很多客戶，可以持續很長時間。因此，如果我們最終建立庫存，那麼該庫存就不會變壞。我們不必廢棄它。所以這對我們有利。從本質上講，這是我們正在進行的一個非常不對稱的賭注，上行空間非常大，下行空間有限。因此，我們將繼續以這種方式運營。

We'll hear now from Toshiya Hari with Goldman Sachs.

我們現在將聽到高盛的 Toshiya Hari 的消息。

And congrats on the execution. I just wanted to go back to performance, your performance by segment. Obviously, in Q2, it was a significant beat in terms of revenue. And Dave, thanks very much for giving color on a sequential basis and a year-over-year basis. But relative to what you were thinking internally, where did the beat come from? Was it broad-based, or was it focused in one or two businesses?

並祝賀執行。我只是想回到性能上，您按細分市場的性能。顯然，在第二季度，就收入而言，這是一個顯著的增長。戴夫，非常感謝你按順序和按年提供顏色。但相對於你內心的想法，節拍是從哪裡來的？它的基礎廣泛，還是專注於一兩個業務？

Well, I think that, in general, if you look at the areas of strength that we had, and certainly in areas that were driven by the work from home, the PCs, tablets, the servers, those were areas that we saw strength. Automotive, obviously, when things shut down, they shut down. And that was -- had turned off pretty much like a light switch as the numbers would show. And I think that inside of industrial, you've got the numbers of down -- or the 2% or so from a transition standpoint. So yes, definitely the strength that we saw we had in the work-from-home areas. Do you have a follow-on?

好吧，我認為，總的來說，如果你看看我們擁有的優勢領域，當然還有在家工作驅動的領域，個人電腦、平板電腦、服務器，這些都是我們看到的優勢領域。汽車，顯然，當事情停止時，它們就停止了。那就是——就像數字顯示的那樣，就像電燈開關一樣關閉了。而且我認為在工業內部，從轉型的角度來看，你的數字下降了 2% 左右。所以是的，絕對是我們在在家工作領域看到的實力。你有後續嗎？

I do. As you guys know, M&A is clearly topical in the group right now. And Rafael, I was just hoping you can remind us what sort of the criteria is when it comes to M&A for you guys at TI. And sort of a two-part question, is it fair to say that your posture is a little bit more conservative or cautious, given the current macro and geopolitical backdrop as well as where evaluations lie? Or is it pretty much business as usual for you guys on the M&A front?

我願意。正如你們所知，併購顯然是目前該集團的熱門話題。拉斐爾，我只是希望你能提醒我們在 TI 的併購方面有什麼樣的標準。這是一個由兩部分組成的問題，考慮到當前的宏觀和地緣政治背景以及評估的位置，可以說你的態度有點保守或謹慎嗎？還是你們在併購方面與往常一樣？

Yes. No, that's a good question. And it's interesting the way you framed it. So let me first remind everybody our framework, and any acquisition that we consider needs to meet two criteria. The first, it needs to be a good strategic fit. So that means an analog company with catalog parts, differentiated parts that then go into auto and industrial because that's where we focus, that's where the content growth is happening and that would align well with our strategy.

是的。不，這是個好問題。你構建它的方式很有趣。所以讓我首先提醒大家我們的框架，我們認為的任何收購都需要滿足兩個標準。首先，它需要具有良好的戰略契合度。因此，這意味著一家擁有目錄零件、差異化零件的模擬公司，然後進入汽車和工業領域，因為這是我們關注的領域，內容增長正在發生，這將與我們的戰略保持一致。

But the next piece is that the price needs to make sense. And that is after -- once you make the purchase, in three, four, five years, are you meeting the cost of capital? Are you beating the cost of capital? And think of it on a cash-on-cash standpoint. I invest $100 and my cost of capital is 10%. When am I going to get $10 after-tax on that investment? Can I beat that $10 and get $15 or $20 over time? So that's our criteria. That's the one we've had for many years, and we continue to have it.

但下一點是價格需要合理。那是之後——一旦你進行了購買，在三年、四年、五年後，你能滿足資本成本嗎？您是否正在克服資本成本？並從現金對現金的角度來考慮它。我投資 100 美元，我的資金成本是 10%。我什麼時候可以從該投資中獲得 10 美元的稅後收益？我可以擊敗那 10 美元並隨著時間的推移獲得 15 美元或 20 美元嗎？這就是我們的標準。這是我們多年來一直擁有的，而且我們將繼續擁有它。

On your second part of your question, are we more -- are we conservative? Frankly, in an environment like we're going through today, it's a great time to make the most of opportunities. So we're not conservative. We're following the same framework that we have followed. And based on that framework, we evaluate M&A opportunities. But more importantly, we're continuing to invest internally. We're making our competitive advantages stronger. We continue to invest in R&D. We haven't scaled back that at all. We continue to invest in things like TI.com and our reach of market channels. And of course, our manufacturing and technology, where we are -- we broke ground on the new facility, the new -- the second RFAB in Richardson. And we're going to be investing to have that building ready over the next 18 to 24 months. So we continue to do that to strengthen the company, and now is a great time to do it. We're very well-positioned from a balance sheet standpoint, from a P&L, a free cash flow standpoint, a lot better than our competitors. So that's -- it's a good time to take advantage of that.

關於你問題的第二部分，我們是否更保守？坦率地說，在我們今天所處的環境中，現在是充分利用機會的好時機。所以我們並不保守。我們正在遵循我們所遵循的相同框架。並基於該框架，我們評估併購機會。但更重要的是，我們將繼續進行內部投資。我們正在增強我們的競爭優勢。我們繼續投資於研發。我們根本沒有縮減。我們繼續投資於 TI.com 和我們的市場渠道。當然，我們的製造和技術，我們在哪裡——我們在新設施上破土動工，新的——理查森的第二個 RFAB。我們將投資在未來 18 到 24 個月內準備好該建築。所以我們繼續這樣做以加強公司，現在是這樣做的好時機。從資產負債表的角度來看，從損益表、自由現金流的角度來看，我們處於非常有利的位置，比我們的競爭對手要好得多。所以這是 - 現在是利用它的好時機。

We'll hear from Ross Seymore with Deutsche Bank.

我們將從德意志銀行的 Ross Seymore 那裡聽到。

And congrats on the strong results. I wanted to go into the source of the upside that Dave and Rafael, you guys talked about. The work-from-home side, I think everybody understands why that was better. But the big question that's still outstanding to me is the sustainability of that. So can you just talk about the upside surprise? Do you think it's sustainable? I know you're not guiding by end markets, you never do. But how do you envision the second half of the year in those same areas that upsided?

並祝賀取得了豐碩的成果。我想深入探討 Dave 和 Rafael，你們談到的好處的來源。在家工作方面，我想每個人都明白為什麼這樣更好。但對我來說仍然懸而未決的大問題是它的可持續性。那麼你能談談上行驚喜嗎？你認為這是可持續的嗎？我知道你沒有以終端市場為導向，你從來沒有這樣做過。但是，您如何看待今年下半年在那些上漲的相同領域？

Yes. Ross, I think that when we look at our business longer term, we look at where we're investing for growth. Industrial and automotive is where the investments go, especially industrial. That's where we expect growth to be when we look at three- and five- and 10-year growth, perhaps for the next couple of decades. So we believe that growth is very sustainable, and that's really where we're focused. I'll say that some of the growth that we're seeing is due, because of the optionality that Rafael talked about. We've recently updated our customers. We've got 40,000 products that we have immediate availability on today. So if that demand is sustainable in the second half, we've got the products available to ship into any of those, any of our markets overall in the short term. But our long-term prospects, I think, are really what's more important. Do you have a follow-on?

是的。羅斯，我認為當我們從長遠來看我們的業務時，我們會看看我們為增長投資的地方。工業和汽車是投資的方向，尤其是工業。這就是我們在考慮未來 20 年、3 年、5 年和 10 年的增長時所期望的增長。因此，我們相信增長是非常可持續的，而這正是我們關注的重點。我會說我們看到的一些增長是由於拉斐爾談到的可選性。我們最近更新了我們的客戶。我們有 40,000 種產品，今天可以立即供貨。因此，如果下半年這種需求是可持續的，我們就可以在短期內將產品運送到任何一個市場，我們的任何一個市場。但我認為，我們的長期前景才是更重要的。你有後續嗎？

I do. I wanted to switch over to the two product segments, two main ones, Analog and Embedded. I just wanted to see if there's any update on your views on the Embedded side. I know you said there was a little bit of a restructuring built into that $0.33 gain, I guess, as a little bit of an offset. But the big picture question is you're now down to the lowest percentage of sales Embedded has been since, at least in my model, like 2012. And the year-over-year decline is so much larger than the Analog side. So can you just talk a little bit about when do you think that business bottoms out? What sort of restructuring needs to be done? And then do you think that business is a growth driver over time for the company? Or is it something that we should just envision as remaining a much smaller part of the company than it once was?

我願意。我想切換到兩個產品部分，兩個主要部分，模擬和嵌入式。我只是想看看您對嵌入式方面的看法是否有任何更新。我知道你說過在這 0.33 美元的收益中有一點重組，我猜，作為一點抵消。但大局的問題是，你現在已經下降到嵌入式銷售額的最低百分比，至少在我的模型中，比如 2012 年。而且同比下降幅度遠大於模擬端。那麼，您能否談談您認為該業務何時觸底？需要進行什麼樣的重組？然後你認為隨著時間的推移，業務是公司的增長動力嗎？還是我們應該設想它在公司中所佔的比例比以前小得多？

Yes. I think when we look at the Embedded business, the embedded market, as we've talked about before, it shares many of the attributes that the analog market does. And we believe that it will be -- it has been and will continue to be a contributor to free cash flow growth. When you look at that business and look at the share gains that it's had, look at '16, '17 and really the better part of '18, it has had -- it's had share gains. It gave some of that back in '19, of course.

是的。我認為，當我們審視嵌入式業務、嵌入式市場時，正如我們之前談到的那樣，它與模擬市場具有許多相同的屬性。我們相信它將會——它已經並將繼續成為自由現金流增長的貢獻者。當您查看該業務並查看它所擁有的份額收益時，請查看'16，'17以及'18的大部分時間，它已經 - 它已經獲得了份額收益。當然，它在 19 年回饋了其中的一些。

So -- but here, more recently, we talked about last quarter, you saw some sequential growth out of that business all in. We talked about the fact that without auto, you would have seen sequential growth in that business this quarter. So I think we're seeing the signs of stabilization inside of that business. So we have taken actions to strengthen that business. Once you dive into that, we've got, across Microcontrollers and Processors, there's eight businesses. Three of them, actually we've increased resources. Two of them, we've actually decreased the resources. And three of them have stayed about the same. So that's portfolio management that you've seen us take across our businesses over the years. So we do believe that, that business will be a contributor to free cash flow. So there's a lot of work going on to ensure that it is. So okay. Thank you very much, Ross.

所以 - 但在這裡，最近，我們談到了上個季度，你看到了該業務的一些連續增長。我們談到了一個事實，如果沒有汽車，你會看到本季度該業務的連續增長。所以我認為我們正在看到該業務內部穩定的跡象。因此，我們已採取行動加強該業務。一旦你深入研究，我們就會發現，在微控制器和處理器領域，有八項業務。其中三個，實際上我們已經增加了資源。其中兩個，我們實際上已經減少了資源。其中三個幾乎保持不變。這就是您多年來看到我們在我們的業務中採取的投資組合管理。因此，我們確實相信，該業務將成為自由現金流的貢獻者。所以有很多工作正在進行以確保它是。好吧。非常感謝你，羅斯。

We'll hear from Chris Danely with Citi.

我們將聽取花旗銀行的 Chris Danely 的意見。

Dave, I think you mentioned that you thought there's some inventory build out there. I believe you said it was just in industrial. Can you give us a sense of how much you think that helped? And what gives you confidence it's not occurring in any other product lines? And did you guys notice anything, any kind of strength by certain geographies out there?

戴夫，我想你提到過你認為那裡有一些庫存。我相信你說這只是在工業領域。您能告訴我們您認為這有多大幫助嗎？是什麼讓您確信它不會出現在任何其他產品線中？你們有沒有註意到某些地區的任何力量？

Yes, Chris. You know that you've heard us talk, you've heard me say multiple times in the past that I've joked that I've never once taken a double order in order to -- for an inventory build. And obviously, customers don't mark it that way when they send an order in. So that is something that we can't see. As I've talked about before, with 60%, 65% of our revenue on consignment, we don't have inventory of our product sitting in front of the manufacturing line, so our visibility ends right there. So we don't have a system that tells us if customers are building inventory. But just when you look at the numbers and you look at the strength and you add things up, that's what our intuition tells us. So we're just mindful of that. We think it's important just to point that out. So could it be in other areas? It could be, but our belief is it's not significant, but we think it's important to point it out.

是的，克里斯。你知道你聽過我們的談話，你在過去聽過我多次說過我開玩笑說我從來沒有接受過雙重訂單來建立庫存。顯然，客戶在發送訂單時不會那樣做標記。所以這是我們看不到的。正如我之前談到的，我們 60%、65% 的收入來自寄售，我們沒有產品庫存在生產線前面，所以我們的可見性就在那裡結束。所以我們沒有一個系統可以告訴我們客戶是否正在建立庫存。但是，當您查看數字並查看強度並將其加起來時，這就是我們的直覺告訴我們的。所以我們只注意這一點。我們認為指出這一點很重要。那麼它可以在其他領域嗎？可能是，但我們認為這並不重要，但我們認為指出這一點很重要。

Yes. And let me just add to that, on your -- your question was on the customer side. Let me remind you on the distribution side where we do have visibility. We drain $150 million of distributor-owned inventory. That's on top of the $50 million we drained last quarter. So, so far year-to-date, it's $200 million. And we think we'll be able to drain another $150 million or so for the rest of the year. So we'll probably end up draining $350 million or so of inventory. And that makes a lot of sense just given the changes in distribution that we're making. We're bringing more customers direct. So then we can control -- that inventory will be on, essentially, on our balance sheet as we build more inventory on our balance sheet, so we can support those customers direct.

是的。讓我補充一點，你的問題是關於客戶的。讓我提醒您在我們確實有知名度的分銷方面。我們耗盡了 1.5 億美元的經銷商庫存。這是在我們上個季度消耗的 5000 萬美元之外的。所以，今年到目前為止，它是 2 億美元。我們認為我們將能夠在今年剩餘時間裡再消耗 1.5 億美元左右。所以我們最終可能會耗盡 3.5 億美元左右的庫存。考慮到我們正在做的分佈變化，這就很有意義了。我們正在直接帶來更多客戶。這樣我們就可以控制——當我們在資產負債表上建立更多庫存時，庫存基本上會出現在我們的資產負債表上，這樣我們就可以直接支持這些客戶。

The other comment I'll make regarding that, that given that drain, now we only have about three weeks of inventory in the disty channel, down about a week from the prior quarter. But I will tell you that, that metric is already less meaningful than it was before. And it will continue to be less meaningful as we make that distribution channel smaller over time. So -- but I just wanted to give the data points so you have it. Do you have a follow-up, Chris?

關於這一點，我要發表的另一條評論是，考慮到這種流失，現在我們在 disty 渠道中只有大約三週的庫存，比上一季度減少了大約一周。但我會告訴你，那個指標已經沒有以前那麼有意義了。隨著我們隨著時間的推移縮小分銷渠道，它的意義將繼續減弱。所以 - 但我只是想提供數據點，以便您擁有它。你有後續行動嗎，克里斯？

So it's on that last statement. So you said that you've got three weeks of inventory in the disty channel. I guess if we look at your days of inventory right now, it's 170. It's, I mean, your balance looks like the Fed's from a first glance. Should we expect this to be the new normal going forward, like right around 170 days? Or should this be the same sort of dollar level? Or I guess, what should we sort of calibrate our models to for inventory going forward at TI?

所以這是最後一個聲明。所以你說你在 disty 頻道有三週的庫存。我想如果我們現在看看你的庫存天數，它是 170。我的意思是，乍一看，你的餘額看起來像美聯儲的。我們是否應該期望這成為未來的新常態，比如大約 170 天？或者這應該是同一種美元水平嗎？或者我猜，我們應該如何校准我們的模型以適應 TI 未來的庫存？

Yes. Well, a few comments. One is, as I just said, the distribution-owned inventory, we've been draining for seven quarters in a row. So if you look at the entire ecosystem, right, including the distribution inventory, plus our inventory, over the last couple of years, probably seven, eight quarters, is relatively flat, right? So you have to -- I think it makes sense. We think it makes sense to think about it that way.

是的。好吧，一些評論。一個是，正如我剛才所說，分銷擁有的庫存，我們已經連續七個季度消耗殆盡。所以如果你看看整個生態系統，對吧，包括分銷庫存，加上我們的庫存，在過去幾年裡，大概七八個季度，相對平穩，對吧？所以你必須——我認為這是有道理的。我們認為這樣考慮是有道理的。

And then the other angle, as I mentioned earlier and we talked about in our prepared remarks, is the great optionality that having that inventory gives us. And we just showed that in second quarter. And we'll continue to do it because it is an asymmetric bet that having that inventory, there's a working capital cost associated with that, but the scrap risk from that is really, really low. Yet the potential upside of serving our customers well with very low lead times, in many cases, as we said, immediate availability, we think that, longer term, is something the customers do and will continue to appreciate.

然後另一個角度，正如我之前提到的以及我們在準備好的評論中談到的那樣，是擁有該庫存給我們帶來的巨大選擇。我們剛剛在第二季度展示了這一點。我們將繼續這樣做，因為擁有該庫存是一個不對稱的賭注，與此相關的營運資金成本，但由此產生的報廢風險確實非常低。然而，正如我們所說，在許多情況下，以非常短的交貨時間為我們的客戶提供良好服務的潛在好處是，我們認為，從長遠來看，即時可用性是客戶所做並將繼續欣賞的事情。

We'll take our next question from Ambrish Srivastava from BMO.

我們將接受來自 BMO 的 Ambrish Srivastava 的下一個問題。

Dave, I apologize for the background noise. Economic activity is humming around where I live. Gross margin, the quarter margin was much higher than what a normal fall-through model would suggest. So I was wondering, is it just a factor of how low Embedded is, and that's the mix that's contributing to the gross margin being so strong this quarter? Or is there something else going on because your utilization was flat quarter-to-quarter end?

戴夫，我為背景噪音道歉。經濟活動在我居住的地方嗡嗡作響。毛利率、季度利潤率遠高於正常的直通模型所暗示的水平。所以我想知道，這是否只是嵌入式產品有多低的一個因素，而這正是本季度毛利率如此強勁的原因之一？或者是否有其他原因導致您的利用率在季度末持平？

Yes. What I would tell you, it's -- as we have guided for many years, you should think of revenue coming in and out at 70% to 75%. That's a good guide to use over the entire cycle. Of course, any one quarter could be a little more or a little less. And then over the longer term, of course, 300-millimeter and continuing to add revenue on 300-millimeter has a structural cost advantage that helps our margin just continue to be a tailwind on margins, has been and will continue to be.

是的。我要告訴你的是——正如我們多年來的指導，你應該考慮收入的進出在 70% 到 75% 之間。這是一個很好的指南，可以在整個週期中使用。當然，任何一個季度都可能多一點或少一點。然後從長遠來看，當然，300 毫米和繼續增加 300 毫米的收入具有結構性成本優勢，這有助於我們的利潤率繼續成為利潤率的順風，已經並將繼續是。

Do you have a follow-on, Ambrish?

你有後續嗎，Ambrish？

Yes. I did. Back to Microcontrollers, Embedded, now that you have been looking at the data, and I'm sure you've been looking at it before, but is there a -- and it's good to see that stabilizing and you're seeing some signs of stabilization, especially how low it is. Is there some insight you could provide us between the Connected and the Processors side that would help explain the divergence that we have seen from the overall Analog over the last -- not three years as you were just pointing out first? If we look back at three years, only in the last six or seven quarters has it really been diverging from the industry.

是的。我做到了。回到微控制器，嵌入式，現在你一直在查看數據，我相信你以前一直在查看它，但是有沒有 - 很高興看到這種穩定並且你看到了一些跡象穩定性，尤其是它有多低。您是否可以在連接和處理器方面向我們提供一些見解，這將有助於解釋我們在過去從整體模擬中看到的差異 - 而不是您剛剛指出的三年？如果我們回顧三年，只有在最近六七個季度，它才真正與行業發生分歧。

Yes. There's not that much difference in the trend between Microcontrollers and the Processors business. And really, if you look at the longer trend line, and that's really what -- share doesn't move around quickly inside of those businesses, whether it's Analog or Embedded overall and then if you drop down into Microcontrollers or Processors. So again, if you look at kind of '16 or '17 and the three quarters of '18, those businesses really did have a real strong track record of share gains. And the deterioration began to happen in '19, where it gave some of that back. So again, we're taking the actions to strengthen that business. We believe that what we're doing will get that business performing and having it be a strong contributor to free cash flow. So thank you, Ambrish.

是的。微控制器和處理器業務之間的趨勢並沒有太大區別。真的，如果你看一下更長的趨勢線，那真的是什麼——份額不會在這些業務內部快速移動，無論是模擬還是嵌入式整體，然後如果你下降到微控制器或處理器。所以，如果你再看看 16 年或 17 年以及 18 年的三個季度，這些企業確實擁有真正強勁的股票收益記錄。惡化開始發生在 19 年，在那裡它回饋了一些。因此，我們再次採取行動來加強該業務。我們相信，我們正在做的事情將使該業務表現良好，並使其成為自由現金流的強大貢獻者。謝謝你，Ambrish。

We'll take our next question from William Stein with SunTrust.

我們將從 SunTrust 的 William Stein 那裡回答下一個問題。

There's a very slow-moving, but I think long-term, relatively meaningful risk as it relates to China trying to develop a domestic, strong semiconductor capability. Some might argue that given the current state of affairs, both economically and politically, that perhaps there could be some acceleration in that regard recently. And I'm hoping you might update us as to what you are seeing from this competitive threat.

有一個非常緩慢的變化，但我認為這是一個長期的、相對有意義的風險，因為它與中國試圖發展國內強大的半導體能力有關。有些人可能會爭辯說，考慮到目前的經濟和政治狀況，最近這方面可能會有所加速。我希望您可以向我們介紹您從這種競爭威脅中看到的最新情況。

Yes. So just to give you some thoughts on that. We think of that in a way similar as we think of our competitors, meaning that our competitive advantages put us in a good place to compete against our American or European competitors just as well as the Chinese. And having, one, our own manufacturing with 300-millimeter, that puts us -- gives us a structural cost advantage. The other one is the broadest portfolio in the industry, close to 100,000 different parts. And that's particularly relevant with industrial and automotive, where in the case of industrial, for example, there are probably 80,000 different customers, right? So you want to be able to have the entire suite of parts in the Analog space and Embedded space. It makes it more likely that they will buy from you. It makes the investment on the sales side more worthwhile and then with the diversity, diverse long-lived positions that, that results into. And partially, because of those advantages and the way that is structured, it's just difficult to go after that space, right?

是的。所以只是想給你一些想法。我們對這一點的看法與我們對競爭對手的看法相似，這意味著我們的競爭優勢使我們處於與美國或歐洲競爭對手以及中國競爭對手競爭的有利位置。並且擁有，一個，我們自己的 300 毫米製造，這讓我們 - 給了我們結構性成本優勢。另一個是業內最廣泛的產品組合，接近 100,000 個不同的零件。這與工業和汽車尤其相關，例如，在工業領域，可能有 80,000 名不同的客戶，對嗎？因此，您希望能夠在模擬空間和嵌入式空間中擁有整套零件。這使他們更有可能向您購買。它使銷售方面的投資更有價值，然後帶來多樣化、多樣化的長期職位。部分地，由於這些優勢和結構方式，很難去追求那個空間，對吧？

So what we have seen, where companies in China, or really anywhere, where they first go after is the kind of vertical markets in places like memory or digital spaces that is frankly just easier to go after, easier to get revenue growing quickly, and then you can reinvest that and go from there. In the Analog space, with average prices in the $0.30 to $0.40. Embedded is higher than that, but not that much higher. It's just hard. And then the 80,000 different customers that you go after, the 100,000 different parts, is a daunting task, right? It's not impossible, so we're very respectful of that. And our job is to stay ahead of all our competitors no matter where they are, American, European, Asian. So we want to -- we continue to invest in that -- those advantages, in manufacturing, in the broad portfolio and a reach of channels to make that climb even harder every year. Do you have a follow-up?

所以我們所看到的，中國的公司，或者實際上任何地方的公司，他們首先追求的是內存或數字空間等地方的垂直市場，坦率地說，這些市場更容易追求，更容易獲得快速增長的收入，而且然後你可以再投資並從那裡開始。在模擬領域，平均價格在 0.30 美元到 0.40 美元之間。嵌入式比那個高，但也沒有那麼高。這很難。然後你要追求的 80,000 個不同的客戶，100,000 個不同的部分，是一項艱鉅的任務，對吧？這並非不可能，因此我們非常尊重這一點。我們的工作是保持領先於我們所有的競爭對手，無論他們在哪裡，美國、歐洲、亞洲。因此，我們希望——我們繼續投資——那些優勢，在製造、廣泛的產品組合和渠道範圍內，使每年的攀升更加艱難。你有跟進嗎？

Yes. I appreciate that answer. It sounds like there's no meaningful change recently in this threat relative to any others. I wanted to follow up on the distribution commentary around, I think, another $150 million of inventory to go. When we think about the $50 million, the $150 million done in the quarter, and I think you said $150 million left in the back half, should we think about that as proportional to the amount or to the percentage of distribution business that's going to transition this year? And is that still on track to finish by the end of the year?

是的。我很欣賞這個答案。聽起來最近這種威脅相對於其他威脅沒有任何有意義的變化。我想跟進分銷評論，我想，還有 1.5 億美元的庫存要走。當我們考慮本季度完成的 5000 萬美元和 1.5 億美元時，我想你說後半部分還剩下 1.5 億美元，我們是否應該考慮將其與要轉型的分銷業務的金額或百分比成比例今年？是否仍有望在年底前完成？

Yes. So it is on track to finish by the end of the year. And what happens there is by the end of the year, we're just going to have a much smaller distribution footprint, the number of distributors that we engage with. And at the same time, we have -- we will have transitioned a fair amount of customers to shipping direct. So then fewer distributors -- what's left of distribution will be with fewer distributors, the more of our revenue going direct, and that is, yes, I guess it is proportional to that drain of inventory that you're referring to.

是的。因此，它有望在年底前完成。到今年年底，我們將擁有更小的分銷足跡，即與我們合作的分銷商數量。與此同時，我們已經——我們將把相當數量的客戶轉移到直接發貨。那麼更少的分銷商 - 剩下的分銷商將更少，我們的直接收入越多，也就是說，是的，我想這與你所指的庫存消耗成正比。

But it also includes a reduction in inventory of the distributors that will be with us as well.

但它也包括減少與我們一起的分銷商的庫存。

That is the -- but yes, I'm glad you mentioned that. So yes. So part of what that reduction is, is that the distributors that are going to -- that we're going to stay with, for the most part, they will be on full consignment. So anything that we sell with them, and there's a few exceptions in Japan, for example, but other than that, it will -- they will be in full consignment. So really, they're going to have zero owned inventory for the most part. So that is also reflected in the $350 million.

那就是——但是，是的，我很高興你提到了這一點。所以是的。因此，減少的部分原因是分銷商將要 - 我們將留下來，在大多數情況下，他們將完全寄售。因此，我們與他們一起出售的任何東西，例如在日本有一些例外，但除此之外，他們將完全寄售。因此，實際上，他們在很大程度上將擁有零庫存。所以這也反映在 3.5 億美元中。

So I think that was the last question. So let me just wrap up by summarizing what we have said previously. We will continue to invest in and strengthen our four competitive advantages, which are manufacturing and technology, portfolio breadth, market reach and diverse and long-lived products. We will also continue to pursue our three ambitions. We will act like owners who will own the company for decades. We will adapt in a world that's ever changing. And we will be a company that we are personally proud to be part of and would be proud to have as a neighbor. When we are successful, our employees, customers, communities and owners will all benefit. Thank you very much.

所以我認為這是最後一個問題。因此，讓我總結一下我們之前所說的內容。我們將繼續投資並加強我們的四大競爭優勢，即製造和技術、產品組合廣度、市場範圍以及多樣化和長壽命的產品。我們還將繼續追求我們的三個雄心壯志。我們將像擁有公司數十年的所有者一樣行事。我們將適應不斷變化的世界。我們將成為一家我們個人引以為豪的公司，並會引以為豪的鄰居。當我們成功時，我們的員工、客戶、社區和業主都會受益。非常感謝。

Thank you. And that does conclude today's conference. Thank you all for your participation. You may now disconnect.

謝謝。今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。