威騰電子 (WDC) 2021 Q4 法說會逐字稿

Good afternoon, and thank you for standing by. Welcome to Western Digital's Fiscal Fourth Quarter 2021 Analyst Call. (Operator Instructions) Now I will turn the call over to Mr. Peter Andrew. You may begin.

下午好，感謝您的支持。歡迎參加西部數據 2021 財年第四季度分析師電話會議。 （操作員說明）現在我將把電話轉給 Peter Andrew 先生。你可以開始了。

Thank you, and good afternoon, everyone. Joining me today are David Goeckeler, Chief Executive Officer; and Bob Eulau, Chief Financial Officer.

謝謝大家，大家下午好。今天加入我的是首席執行官 David Goeckeler；和首席財務官 Bob Eulau。

Before we begin, let me remind everyone that today's discussion contains forward-looking statements including product portfolio expectations, business plans, trends and financial outlook based on management's current assumptions and expectations, and as such, does include risks and uncertainties. We assume no obligation to update these statements. Please refer to our most recent financial report on Form 10-K filed with the SEC for more information on the risks and uncertainties that could cause the actual results to differ materially.

在開始之前，讓我提醒大家，今天的討論包含前瞻性陳述，包括基於管理層當前假設和預期的產品組合預期、業務計劃、趨勢和財務前景，因此確實包含風險和不確定性。我們不承擔更新這些聲明的義務。請參閱我們最近提交給 SEC 的 10-K 表格財務報告，以了解有關可能導致實際結果出現重大差異的風險和不確定性的更多信息。

We will also make references to non-GAAP financial measures today. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the press release and other materials that are being posted in the Investor Relations section of our website.

今天，我們還將參考非公認會計準則財務指標。非 GAAP 和可比 GAAP 財務指標之間的對賬包含在新聞稿和我們網站投資者關係部分發布的其他材料中。

With that, I'll now turn the call over to David for his introductory comments.

有了這個，我現在將把電話轉給大衛，請他做介紹性評論。

Thank you, Peter. Good afternoon, everyone, and thanks for joining the call to discuss our fourth quarter and fiscal year 2021 results.

謝謝你，彼得。大家下午好，感謝您加入電話會議，討論我們的第四季度和 2021 財年業績。

We reported solid fourth quarter results with revenue of $4.9 billion, non-GAAP gross margin of 33% and non-GAAP earnings per share of $2.16, all above the guidance ranges we provided in April. The upside was primarily driven by record demand for our capacity enterprise hard drives. Fiscal year 2021 revenue totaled $16.9 billion, and we reported non-GAAP earnings per share of $4.55.

我們報告了穩健的第四季度業績，收入為 49 億美元，非美國通用會計準則毛利率為 33%，非美國通用會計準則每股收益為 2.16 美元，均高於我們在 4 月份提供的指導範圍。上行主要是由於對我們的容量企業硬盤驅動器的創紀錄需求。 2021 財年總收入為 169 億美元，我們報告的非公認會計原則每股收益為 4.55 美元。

Last March, I joined Western Digital with a strong conviction in the digital transformation that is reshaping every industry, every company and every person's day-to-day life. At that time, we were in the early stages of the pandemic. Today, the accelerated digital transformation that has occurred during this period has created a world that is more technology-enabled and technology-dependent than ever before. The increasing value and importance of data is undeniable, and Western Digital will continue to capitalize on this opportunity as the only provider of both flash and hard drive solutions.

去年 3 月，我以堅定的信念加入西部數據，堅信數字化轉型正在重塑每個行業、每個公司和每個人的日常生活。那時，我們正處於大流行的早期階段。今天，在此期間發生的加速數字化轉型創造了一個比以往任何時候都更加技術支持和技術依賴的世界。不可否認，數據日益增長的價值和重要性，西部數據將繼續利用這一機會，成為閃存和硬盤解決方案的唯一供應商。

Our ability to provide this diverse range of technologies enables us to drive innovation from endpoints, to the edge, to the cloud, and combined with our commitment to delivering the highest quality products, is ultimately what sets us apart and allows us to deliver strong results. As we reflect on this fiscal year, I'm very proud of what Western Digital has accomplished, particularly in light of the fact that the pandemic impacted various aspects of our company and the supply chain.

我們提供這種多樣化技術的能力使我們能夠推動從端點到邊緣再到雲的創新，再加上我們對提供最高質量產品的承諾，最終使我們與眾不同並讓我們能夠提供強大的成果.當我們回顧本財年時，我為西部數據所取得的成就感到非常自豪，特別是考慮到大流行影響了我們公司和供應鏈的各個方面這一事實。

As a team, we made the changes throughout the year necessary to improve our focus, sharpen execution and lay out the right strategic goals to place Western Digital in a position of greater strength. To achieve these goals, we created separate business units for our flash and HDD technologies, led by 2 widely respected technology leaders.

作為一個團隊，我們在全年進行了必要的變革，以提高我們的專注力、加強執行力並製定正確的戰略目標，使西部數據處於更強大的地位。為了實現這些目標，我們為我們的閃存和 HDD 技術創建了獨立的業務部門，由 2 位廣受尊敬的技術領導者領導。

As a result of this renewed focus, we accelerated our innovation road map, built momentum in our energy-assisted hard drives and continue to successfully ramp our second-generation NVMe enterprise SSDs while working hard to complete additional customer qualifications. We were also able to successfully navigate through the pandemic, capitalize on opportunities and continue providing dependable, industry-leading products that are the cornerstones of the data economy.

由於這種重新關注，我們加快了我們的創新路線圖，在我們的能源輔助硬盤驅動器方面建立了動力，並繼續成功地提升我們的第二代 NVMe 企業級 SSD，同時努力完成更多的客戶資格。我們還能夠成功度過這一流行病，抓住機遇並繼續提供可靠的、行業領先的產品，這些產品是數據經濟的基石。

We continue to believe that we have the right foundation for success, the right market-leading products, the right customer base and the unique ability to address 2 large and growing markets. That foundation continues to underspin the strength of our results and is propelling the business forward today, even as we manage through some of the lingering impacts from COVID.

我們仍然相信，我們擁有成功的正確基礎、正確的市場領先產品、正確的客戶群以及應對兩個龐大且不斷增長的市場的獨特能力。這一基礎繼續支撐著我們的業績，並推動著今天的業務向前發展，即使我們正在應對 COVID 帶來的一些揮之不去的影響。

And while we saw incremental demand due to the emergence of Chia, our standout performance this quarter was primarily attributable to increasing demand from our cloud customers and the beginning of a recovery in enterprise demand, the breadth and quality of our product line and our many routes to market. We feel we are well positioned to capitalize on the large and growing opportunities in front of us.

雖然由於 Chia 的出現，我們看到需求增加，但我們本季度的出色表現主要歸因於我們的雲客戶需求增加以及企業需求開始復蘇，我們產品線的廣度和質量以及我們的許多路線市場。我們認為我們已做好充分準備，可以利用擺在我們面前的巨大且不斷增長的機會。

With that, I'll now provide a recap of our flash and HDD businesses as it relates to our fourth quarter results. In the fourth quarter, demand for our flash products was greater than we could supply in a number of end markets. In the face of both component and NAND shortages, we continue to strategically shift bits to meet customer needs while driving growth in both revenue and gross margin.

有了這個，我現在將回顧一下我們的閃存和硬盤業務，因為它與我們的第四季度業績有關。在第四季度，我們的閃存產品的需求超過了我們在一些終端市場的供應量。面對組件和 NAND 短缺，我們繼續戰略性地轉移比特以滿足客戶需求，同時推動收入和毛利率的增長。

Within Data Center Devices and Solutions, demand for our NVMe enterprise SSDs came in above our expectations, achieving strong quarter-over-quarter revenue growth. We are pleased with our progress in enterprise SSDs as we completed a qualification at another cloud titan and are ramping the product more broadly.

在數據中心設備和解決方案中，對我們 NVMe 企業級 SSD 的需求超出了我們的預期，實現了強勁的季度環比收入增長。我們對我們在企業級 SSD 方面取得的進展感到高興，因為我們完成了另一家云巨頭的資格認證，並且正在更廣泛地推廣該產品。

Within client SSD, we experienced revenue growth as demand remained strong for notebooks and Chromebooks. This remains a large, growing and important end market for Western Digital across our OEM, channel and retail routes to market. Within gaming, demand from the latest generation of game consoles, and our WD_BLACK product line was robust as gamers continue to prefer our expanding lineup of customized solutions.

在客戶端 SSD 中，由於對筆記本電腦和 Chromebook 的需求依然強勁，我們的收入實現了增長。對於西部數據來說，這仍然是一個龐大、不斷增長的重要終端市場，貫穿我們的 OEM、渠道和零售市場。在遊戲領域，最新一代遊戲機和我們的 WD_BLACK 產品線的需求強勁，因為遊戲玩家繼續偏愛我們不斷擴大的定制解決方案陣容。

Within embedded flash, we also experienced growth in smart home devices, VR, automotive and industrial. As the BiCS5 ramp picks up and we achieve bit crossover late this year, we expect to see increased bit growth. To date, BiCS5 is our most capital-efficient node in the 3D era, and the ramp across our product lines will contribute to profitable growth. We have had incredible success with BiCS4 from across cost and bit growth perspective and look forward to experience those same benefits with BiCS5, highlighting once again the successful and important partnership we have with Kioxia.

在嵌入式閃存中，我們在智能家居設備、VR、汽車和工業領域也經歷了增長。隨著 BiCS5 的升溫以及我們在今年年底實現比特交叉，我們預計比特增長將會增加。迄今為止，BiCS5 是我們在 3D 時代資本效率最高的節點，我們產品線的提升將有助於實現盈利增長。從成本和比特增長的角度來看，我們在 BiCS4 上取得了令人難以置信的成功，並期待在 BiCS5 上體驗到同樣的好處，再次強調了我們與鎧俠的成功而重要的合作夥伴關係。

In HDD, we had our highest organic sequential revenue growth in the last decade, driven by the successful ramp of our 18-terabyte energy-assisted hard drive, growing cloud demand, a recovery in enterprise spending and, to a lesser extent, cryptocurrency driven by Chia. This impressive performance is a reflection of our data center customers' confidence in our innovation engine for capacity enterprise hard drives.

在 HDD 方面，我們在過去十年中實現了最高的有機連續收入增長，這得益於我們 18 TB 能源輔助硬盤驅動器的成功增長、雲需求的增長、企業支出的複蘇以及在較小程度上由加密貨幣驅動由嘉。這一令人印象深刻的性能反映了我們的數據中心客戶對我們用於容量企業級硬盤的創新引擎的信心。

Shipments for our 18-terabyte hard drive nearly tripled sequentially, highlighting our leadership in the latest capacity point and the leading-edge energy-assist technology underpinning it. These drives are fully commercialized, and we expect the 18-terabyte hard drive to be the workhorse for the fiscal year. I'm excited to announce a record shipment of over 104 exabytes in capacity enterprise hard drives, a 49% increase sequentially. This is a significant achievement for the business, as we have all of our largest customers qualified and are well into ramping our energy-assisted hard drives.

我們 18 TB 硬盤的出貨量環比增長了近兩倍，突顯了我們在最新容量點的領先地位以及支持它的領先能源輔助技術。這些驅動器已完全商業化，我們預計 18 TB 硬盤驅動器將成為本財年的主力軍。我很高興地宣布，容量企業硬盤的出貨量創紀錄地超過 104 EB，環比增長 49%。這對企業來說是一項重大成就，因為我們所有最大的客戶都符合條件，並且正在大力推廣我們的能源輔助硬盤。

In addition, client demand for desktop and smart video has been strong throughout the quarter due to improving OEM demand. While we are actively managing supply constraints, we expect strength in OEM to continue in the fiscal first quarter. Within retail, HDD demand was above expectations, as we saw consumer interest grow for both at-home HDD storage and for smart video applications.

此外，由於 OEM 需求的改善，整個季度客戶對桌面和智能視頻的需求一直很強勁。雖然我們正在積極管理供應限制，但我們預計 OEM 將在第一財季繼續保持強勁勢頭。在零售業中，HDD 需求超出預期，因為我們看到消費者對家用 HDD 存儲和智能視頻應用的興趣都在增長。

There was also increased demand for hard drives due to proof-of-space cryptocurrencies such as Chia, which emerged as a new vertical market at the beginning of the quarter. We believe proof-of-space cryptocurrency presents a great opportunity for us in the industry, but we are closely monitoring the sustainability of demand.

由於 Chia 等空間證明加密貨幣在本季度初成為一個新的垂直市場，對硬盤驅動器的需求也有所增加。我們相信空間證明加密貨幣為我們在行業中提供了一個巨大的機會，但我們正在密切關注需求的可持續性。

Looking ahead, we strongly believe the fundamental technology shift that I referenced earlier is a sustainable trend. At the center of this innovation, our ever-increasing intelligent devices, which are fueling exponential industry-wide growth in demand, all powered by the cloud, the ability to harness the data in both the device and in the data center is critical, highlighting the importance of our full range of storage solutions.

展望未來，我們堅信我之前提到的基本技術轉變是一個可持續的趨勢。在這項創新的核心，我們不斷增長的智能設備正在推動整個行業的需求呈指數級增長，所有這些都由雲提供支持，利用設備和數據中心中的數據的能力至關重要，強調我們全方位存儲解決方案的重要性。

Moreover, we believe we have the right portfolio to enable us to capture these opportunities. In particular and as Dr. Siva Sivaram, President of Technology and Strategy, discussed in a webcast on July 15, Western Digital's unique ability to deliver both HDD and flash solutions drives meaningful synergies across the business in 4 key areas: market, manufacturing, technology and customer. And our new operating structure gives us the focus we need to capture our full potential.

此外，我們相信我們擁有合適的投資組合，使我們能夠抓住這些機會。特別是，正如技術和戰略總裁 Siva Sivaram 博士在 7 月 15 日的網絡廣播中所討論的那樣，西部數據提供 HDD 和閃存解決方案的獨特能力推動了整個業務在 4 個關鍵領域的有意義的協同效應：市場、製造、技術和客戶。我們新的運營結構為我們提供了充分發揮潛力所需的重點。

While we remain optimistic, there are several factors we are closely monitoring. Most importantly, we are actively managing the continued impact of the pandemic. The disruptions to the supply chain have presented a challenge across the industry, and we continue to see shortages of certain components. Additionally, logistics remain a challenge as different geographies are in various stages of reopening. This has been a major contributor to increased lead times and may pose challenges in the future.

儘管我們保持樂觀，但我們正在密切關注幾個因素。最重要的是，我們正在積極應對大流行的持續影響。供應鏈的中斷給整個行業帶來了挑戰，我們繼續看到某些組件的短缺。此外，由於不同地區處於重新開放的不同階段，物流仍然是一個挑戰。這一直是導致交貨時間延長的主要因素，並可能在未來帶來挑戰。

As a result of the supply disruptions, logistics challenges and increased lead times, we continue to face additional cost pressures. Despite these obstacles, we are working diligent to continue delivering to our customers while maintaining a disciplined approach to pricing.

由於供應中斷、物流挑戰和交貨時間延長，我們繼續面臨額外的成本壓力。儘管存在這些障礙，我們仍在努力繼續向我們的客戶交付產品，同時保持嚴格的定價方法。

I'll now turn the call over to Bob to share details on our financial results.

我現在將把電話轉給 Bob，以分享我們財務業績的詳細信息。

Thank you, and good afternoon, everyone. As Dave mentioned, overall results for the fiscal fourth quarter were above the upper end of the guidance ranges provided in April.

謝謝大家，大家下午好。正如戴夫所說，第四財季的總體業績高於 4 月份提供的指導範圍的上限。

Total revenue for the quarter was $4.9 billion, up 19% sequentially and up 15% year-over-year. Non-GAAP earnings per share was $2.16. For the full fiscal year, revenue was $16.9 billion, up 1% from fiscal 2020. And non-GAAP EPS was $4.55, up 50% from last year.

本季度總收入為 49 億美元，環比增長 19%，同比增長 15%。非公認會計原則每股收益為 2.16 美元。整個財年的收入為 169 億美元，比 2020 財年增長 1%。非 GAAP 每股收益為 4.55 美元，比去年增長 50%。

Looking at our end markets. Client Devices revenue was $2.2 billion, up 8% sequentially and up 13% year-over-year. On a sequential basis, we experienced revenue growth in both hard drives and flash and across every major product category: client HDDs, client SSDs, automotive, gaming, smart video and industrial. Mobile revenue was essentially flat on a sequential basis.

看看我們的終端市場。客戶端設備收入為 22 億美元，環比增長 8%，同比增長 13%。在連續的基礎上，我們在硬盤驅動器和閃存以及每個主要產品類別中都經歷了收入增長：客戶端 HDD、客戶端 SSD、汽車、遊戲、智能視頻和工業。移動收入環比基本持平。

Moving on to Data Center Devices and Solutions. Revenue was $1.8 billion, up 44% sequentially and up 6% from a year ago. New product ramps in this end market drove more than double the revenue growth from just 2 quarters ago. Revenue generated from our latest generation energy-assisted hard drives and enterprise SSDs contributed to the growth. Our capacity enterprise hard drives grew 49% sequentially, and our enterprise SSDs grew 39% sequentially. Demand for our 18-terabyte energy-assisted hard drives was particularly strong, comprising nearly half of our capacity enterprise exabyte shipments.

轉向數據中心設備和解決方案。收入為 18 億美元，環比增長 44%，比一年前增長 6%。這個終端市場的新產品增加推動收入增長比僅僅兩個季度前增長了一倍多。我們最新一代的能源輔助硬盤驅動器和企業級 SSD 產生的收入為增長做出了貢獻。我們的容量企業級硬盤環比增長 49%，企業級 SSD 環比增長 39%。對我們 18 TB 能量輔助硬盤的需求特別強勁，占我們容量企業 EB 出貨量的近一半。

Finally, Client Solutions revenue was $977 million, up 10% sequentially and up 42% from a year ago. Once again, revenue growth was broad-based across both HDD and flash and all major product categories.

最後，客戶解決方案收入為 9.77 億美元，環比增長 10%，比一年前增長 42%。再一次，HDD 和閃存以及所有主要產品類別的收入增長都是廣泛的。

Turning to revenue by technology. Flash revenue was $2.4 billion, up 11% sequentially and up 8% year-over-year. Flash ASPs were up 7% sequentially on a blended basis and up 4% on a like-for-like basis. Flash bit shipments increased 4% sequentially. Hard drive revenue was $2.5 billion, up 28% sequentially and up 22% year-over-year. On a sequential basis, total hard drive exabyte shipments increased 34%, while the average price per hard drive increased 18% to $97.

通過技術轉向收入。 Flash 收入為 24 億美元，環比增長 11%，同比增長 8%。 Flash ASP 在混合基礎上環比增長 7%，在同類基礎上增長 4%。閃存位出貨量環比增長 4%。硬盤收入為 25 億美元，環比增長 28%，同比增長 22%。在連續的基礎上，硬盤驅動器 EB 總出貨量增長了 34%，而每個硬盤驅動器的平均價格增長了 18%，達到 97 美元。

As we move to costs and expenses, please note that my comments will be related to non-GAAP results unless stated otherwise. Gross margin for the fourth quarter was 32.9%, up 5.2 percentage points sequentially. This was above the upper end of the guidance range provided in April. Our broad routes to market and ability to proactively shift bits to the most attractive end markets enabled us to expand our gross margin by 5.5 percentage points sequentially to 35.5%. Our hard drive gross margin was 30.3%, up 5.3 percentage points sequentially. This also includes a COVID-related impact of $32 million or approximately 1.3 percentage points.

當我們轉向成本和費用時，請注意，除非另有說明，否則我的評論將與非公認會計原則的結果有關。第四季度毛利率為 32.9%，環比增長 5.2 個百分點。這高於 4 月份提供的指導範圍的上限。我們廣泛的市場路線和主動將位轉移到最具吸引力的終端市場的能力使我們的毛利率連續增長 5.5 個百分點至 35.5%。我們的硬盤毛利率為 30.3%，環比增長 5.3 個百分點。這還包括與 COVID 相關的 3200 萬美元或約 1.3 個百分點的影響。

Operating expenses were $790 million, within our guidance range. Operating income was $828 million, representing a 101% increase from the prior quarter and a 57% increase year-over-year. With our improving profitability, our tax rate in the fiscal fourth quarter was 9.2%, and the tax rate was 13.4% for fiscal year 2021. Earnings per share was $2.16.

運營費用為 7.9 億美元，在我們的指導範圍內。營業收入為 8.28 億美元，比上一季度增長 101%，同比增長 57%。隨著我們盈利能力的提高，我們第四財季的稅率為 9.2%，2021 財年的稅率為 13.4%。每股收益為 2.16 美元。

Operating cash flow for the fourth quarter was $994 million, and free cash flow was $792 million. Capital expenditures, which include the purchase of property, plant and equipment and activity related to our flash joint ventures on our cash flow statement, was an outflow of $202 million. We expect gross CapEx for the next fiscal year to be approximately $3 billion and cash CapEx to be around $2 billion.

第四季度的經營現金流為 9.94 億美元，自由現金流為 7.92 億美元。資本支出，包括購買物業、廠房和設備以及與我們現金流量表上的閃速合資企業相關的活動，流出了 2.02 億美元。我們預計下一財年的總資本支出約為 30 億美元，現金資本支出約為 20 億美元。

In the fiscal fourth quarter, we paid off $212 million in debt, including a discretionary debt payment of $150 million. For the full fiscal year, we paid down a total of $886 million. Our gross debt outstanding was $8.8 billion at the end of the fiscal quarter. Additionally, we have already made a discretionary debt payment of $150 million in the fiscal first quarter.

在第四財季，我們還清了 2.12 億美元的債務，其中包括 1.5 億美元的可自由支配債務。在整個財年，我們總共支付了 8.86 億美元。截至本財季末，我們的未償債務總額為 88 億美元。此外，我們已經在第一財季支付了 1.5 億美元的全權債務。

Our adjusted EBITDA, as defined in our credit agreement, was $3.6 billion, resulting in a gross leverage ratio of 2.4x compared to 2.8 a year ago. As a reminder, our credit agreement includes $1 billion in depreciation, add-back associated with the joint ventures. This is not reflected in our cash flow statement. Please refer to the earnings presentation on the Investor Relations website for further details.

根據我們的信貸協議，我們調整後的 EBITDA 為 36 億美元，總槓桿率為 2.4 倍，而一年前為 2.8。提醒一下，我們的信貸協議包括與合資企業相關的 10 億美元折舊和加回。這沒有反映在我們的現金流量表中。有關詳細信息，請參閱投資者關係網站上的收益報告。

Our liquidity position continues to be strong. At the end of the quarter, we had $3.4 billion in cash and cash equivalents. In addition, we have unused revolver capacity of $2.25 billion.

我們的流動性狀況繼續強勁。在本季度末，我們擁有 34 億美元的現金和現金等價物。此外，我們還有 22.5 億美元的未使用左輪手槍容量。

Moving on to our outlook. Our fiscal first quarter non-GAAP guidance is as follows. We expect revenue to be in the range of $4.9 billion to $5.1 billion. We expect gross margin to be between 33% and 35%. We expect hard drive gross margin to be relatively flat. And we expect flash gross margin to improve sequentially.

繼續我們的展望。我們的第一財季非公認會計準則指引如下。我們預計收入將在 49 億美元至 51 億美元之間。我們預計毛利率在 33% 至 35% 之間。我們預計硬盤毛利率將相對持平。我們預計閃存毛利率將依次提高。

We expect operating expenses to be between $755 million and $785 million. Interest and other expense is expected to be approximately $70 million. The tax rate is expected to be between 11% and 12% in the fiscal first quarter and the fiscal year. We expect earnings per share to be between $2.25 and $2.55 in the first quarter, assuming approximately 317 million fully diluted shares outstanding.

我們預計運營費用將在 7.55 億美元至 7.85 億美元之間。利息和其他費用預計約為 7000 萬美元。預計第一財季和本財年的稅率將在 11% 至 12% 之間。我們預計第一季度每股收益將在 2.25 美元至 2.55 美元之間，假設大約有 3.17 億股完全稀釋的流通股。

I'll now turn the call back over to Dave.

我現在將電話轉回戴夫。

Thanks, Bob. As we close out fiscal year 2021, I am very pleased with how the Western Digital team successfully navigated dynamic market conditions brought on by the pandemic. While it has been a challenging time for all, we will continue to focus on driving innovation.

謝謝，鮑勃。在 2021 財年結束之際，我對西部數據團隊如何成功應對大流行帶來的動態市場狀況感到非常高興。雖然這對所有人來說都是一個充滿挑戰的時期，但我們將繼續專注於推動創新。

When you combine the ramp of new innovative products into 2 very large and growing markets with our newly adopted organization structure, I am confident that our increased focus on execution will continue to propel us forward as the market leaders. Our diverse technology portfolio is the foundation of the data economy. And our unique ability to see the entire storage market enables us to move across the technology landscape to meet customers' needs and be the solution for their evolving storage challenges.

當您將新創新產品的坡道與我們新採用的組織結構結合到兩個非常大且不斷增長的市場時，我相信我們對執行的日益關注將繼續推動我們作為市場領導者前進。我們多樣化的技術組合是數據經濟的基礎。我們對整個存儲市場的獨特洞察力使我們能夠跨越技術領域來滿足客戶的需求，並成為他們不斷變化的存儲挑戰的解決方案。

With careful consideration of the health and safety of our employees, we are also keeping a close eye on the status of COVID-19. In particular, there are certain parts of Asia seeing a spike in cases, and we are working diligently to support our employees through this time. While it is a difficult situation, we'll continue to navigate the complexities presented by the pandemic while we drive innovation for customers and value for shareholders.

在仔細考慮員工的健康和安全的同時，我們也密切關注 COVID-19 的狀況。特別是亞洲某些地區的病例激增，我們正在努力支持我們的員工度過這段時間。儘管情況很困難，但我們將繼續應對大流行帶來的複雜性，同時為客戶推動創新並為股東創造價值。

Let's begin the Q&A session.

讓我們開始問答環節。

(Operator Instructions) We have a question from Joe Moore from Morgan Stanley.

（操作員說明）我們有一個來自摩根士丹利的 Joe Moore 的問題。

I wonder if you could talk about the tightness in NAND that you referenced. To what degree is that a NAND issue versus controllers and kind of other components that go into NAND products?

我想知道你是否可以談談你提到的 NAND 的緊密性。與控制器和其他進入 NAND 產品的組件相比，NAND 問題在多大程度上是一個問題？

Joe, good to hear from you. So it's both. There's no doubt there's shortage in controllers. And I think what we're doing is mixing the portfolio to get the most out of the controllers we have. It's also a shortage in NAND as well. So I mean, we're mixing to get the best result we can. But there's more demand than we're able to satisfy on the NAND side. So it's really -- we're juggling both and balancing them to get the best result we can.

喬，很高興收到你的來信。所以兩者兼而有之。毫無疑問，控制器短缺。而且我認為我們正在做的是混合投資組合以充分利用我們擁有的控制器。這也是NAND的短缺。所以我的意思是，我們正在混合以獲得最好的結果。但 NAND 方面的需求比我們能夠滿足的要多。所以這真的是——我們正在同時兼顧兩者並平衡它們以獲得我們所能獲得的最佳結果。

Okay. And as you guide for the September quarter, is the assumption that you're still kind of supply constrained for the whole quarter?

好的。正如您對 9 月季度的指導一樣，您是否假設整個季度的供應仍然受到限制？

Yes. We're still juggling both of those things, right? We have customers looking for upside, we're juggling that. Mix is a little different from quarter-to-quarter as well. So yes, when you roll all that together is how we get to where we're at in Q1.

是的。我們仍然在兼顧這兩件事，對吧？我們有客戶在尋找上漲空間，我們正在努力應對。混合與季度之間也略有不同。所以是的，當你把所有這些結合在一起時，我們就是如何達到我們在第一季度的水平。

We have a question from Aaron Rakers from Wells Fargo.

我們有一個來自富國銀行的 Aaron Rakers 的問題。

Congratulations on the solid results. I want to ask about the hard disk drive business, 49% sequential growth in your nearline capacity shift. I'm curious how are you thinking about the sustainability of that demand? I think last quarter, you talked a little bit about longer-term purchase agreement. And then if you can, underneath of that also, any thoughts on how significant Chia was as far as a contribution this last quarter?

祝賀你取得了堅實的成果。我想問一下硬盤驅動器業務，您的近線容量轉移環比增長 49%。我很好奇您如何看待這種需求的可持續性？我認為上個季度，您談到了一些關於長期購買協議的問題。然後，如果可以的話，除此之外，您有沒有想過 Chia 在上個季度的貢獻有多大？

Yes. Thanks, Aaron. So we did see very, very strong demand from the cloud. And I think the product has been very well received. As we talked about, energy-assist is fully commercialized now. We saw a very strong sequential growth of the AT&T product. We continue to see strong growth in the second half, working with our customers. We expect continued growth in the business. The long-term agreements, I think, were -- I think probably the best way to think about that is we're working through the first cohort of those, and we expect to talk about the second cohort in the second half.

是的。謝謝，亞倫。所以我們確實看到了來自云的非常非常強勁的需求。而且我認為該產品非常受歡迎。正如我們所談到的，能量輔助現在已經完全商業化。我們看到 AT&T 產品的連續增長非常強勁。與我們的客戶合作，我們在下半年繼續看到強勁的增長。我們預計業務將持續增長。我認為，長期協議是 - 我認為考慮這一點的最佳方式可能是我們正在處理其中的第一批，我們希望在下半年討論第二批。

And they're becoming more and more important because getting visibility into demand is very important, especially going forward, as we're thinking about how to invest in additional head capacity for to support the growth of the business, just the exabyte growth. Chia was, maybe one way to think about that, it was hitting us kind of right where we were on the call was, I think, the first week of it last quarter, probably a couple of hundred million dollars of upside there in the quarter due to Chia.

而且它們變得越來越重要，因為了解需求非常重要，尤其是在未來，因為我們正在考慮如何投資額外的頭部容量以支持業務增長，僅是艾字節增長。 Chia 是，也許是這樣想的一種方式，它在我們接到電話的地方對我們產生了影響，我認為，上個季度的第一周，可能在本季度有幾億美元的上漲空間由於Chia。

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

下一個問題來自 Evercore 的 C.J. Muse。

I guess I'm having a hard time reconciling the strong demand trends outlined here on the call with revenues only guided up 2% sequentially. So can you walk through, I guess, where you're seeing supply constraints, both HDD and NAND. And are you seeing one more so than the other? And then perhaps to help us understand your, I presume, improving visibility, did your backlog grow sequentially into the June quarter? And do you expect it to grow again exiting September?

我想我很難調和電話會議上概述的強勁需求趨勢，而收入僅連續增長 2%。那麼，我猜你能不能看看你看到供應限制的地方，包括 HDD 和 NAND。你看到一個比另一個多嗎？然後也許是為了幫助我們了解您的，我想，提高知名度，您的積壓訂單是否在 6 月季度連續增長？你預計它會在 9 月之後再次增長嗎？

Yes. So it was an exceptional quarter on growth. And there is tightness across both portfolios. There's no doubt about that. We were pushing the factories very, very hard to get every drive we could out of it because there was demand for it. So when you look at it sequentially, we had a strong quarter, and we are basically able to find sales for everything that we could produce. And so going -- so when you look at sequential growth, I guess it's not surprising that there's not a huge amount of top line growth there.

是的。所以這是一個特殊的增長季度。兩個投資組合都存在緊張關係。毫無疑問。我們非常非常努力地推動工廠，因為有需求。因此，當您按順序查看時，我們有一個強勁的季度，我們基本上能夠為我們可以生產的所有產品找到銷售。就這樣 - 所以當你看連續增長時，我想那裡沒有大量的收入增長並不奇怪。

But throughout the markets, we continue to -- so hard drives, we see strength in the cloud. We're seeing really good strength in kind of mid-cap as well. It's not just at the top of the market. And on the flash side, again, we've got more customers looking for upside than we do the opposite. So the demand environment is good, and we're doing the best we can to satisfy as much as we can with the components we have and with the NAND available.

但在整個市場中，我們繼續——硬盤驅動器，我們看到了雲計算的力量。我們在中型股中也看到了非常好的實力。它不僅位於市場的頂端。在閃存方面，再次，我們有更多的客戶在尋找好處，而不是相反。所以需求環境很好，我們正在盡最大努力滿足我們擁有的組件和可用的 NAND。

Our next question comes from Toshiya Hari from Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

Congrats on the very strong results. I had a question on NAND. I think costs in the quarter were up a little bit on a sequential basis. I realize cost downs on a quarterly basis can be very lumpy and you're coming off a multi-quarter stretch of very strong cost downs. But curious what you saw in the quarter from a cost perspective in NAND. And I think in your prepared remarks, Dave, you talked about your expectations for BiCS4 -- BiCS5, I'm sorry, being similar to BiCS4 as you ramp BiCS5 over the next 12 months. If you can kind of set expectations and how we should think about cost downs as you make that transition, that would be super helpful.

祝賀非常強大的結果。我有一個關於 NAND 的問題。我認為本季度的成本環比略有上升。我意識到每季度的成本下降可能非常不穩定，而且您正在經歷一個多季度的非常強勁的成本下降。但好奇你在本季度從 NAND 的成本角度看到了什麼。我認為在你準備好的發言中，Dave，你談到了你對 BiCS4 的期望——對不起，BiCS5 與 BiCS4 類似，因為你在接下來的 12 個月內推出了 BiCS5。如果您可以設定期望以及在您進行過渡時我們應該如何考慮降低成本，那將非常有幫助。

Toshiya, it's Bob. So in terms of the cost take downs, we actually look at it mostly year-over-year. And we're a little bit ahead of the 15% goal we have for year-over-year cost declines and continue to feel good about 15% as the long-term goal. We are starting the nodal transition we did this past quarter to BiCS5, and we'll continue to ramp that hard through the second half. As Dave mentioned, we expect to get the crossover in the fourth calendar quarter. So I think in terms of costs, I think we're in a good place.

俊哉，是鮑勃。因此，就成本下降而言，我們實際上主要是逐年查看。而且我們比我們為同比成本下降設定的 15% 目標提前了一點，並且繼續對 15% 作為長期目標感到滿意。我們正在開始上個季度向 BiCS5 的節點過渡，我們將在下半年繼續努力。正如戴夫所說，我們預計將在第四季度實現交叉。所以我認為就成本而言，我認為我們處於一個好位置。

The next question comes from Karl Ackerman from Cowen.

下一個問題來自 Cowen 的 Karl Ackerman。

I know forecasting ASPs is difficult, but your implied outlook seems to suggest a decline in hard drive pricing, similar with what you saw last year. And I was wondering, should we assume that your assumption for hard drive gross margins is driven by less favorable mix of retail drives? And as you address that question, could you discuss the mix of long-term agreements you have in place today for nearline drives and whether those are negotiated both on price and volume or just volume?

我知道預測 ASP 很困難，但您的隱含前景似乎表明硬盤價格下降，與您去年看到的情況相似。我想知道，我們是否應該假設您對硬盤驅動器毛利率的假設是由不太有利的零售驅動器組合驅動的？當您解決這個問題時，您能否討論一下您今天為近線驅動器製定的長期協議的組合，以及這些協議是在價格和數量上還是僅在數量上進行談判？

It's Bob. I'll start, and then Dave can add in. But in terms of the guide on hard drives, we aren't actually guiding specifically by segment. We had really good gross margins on hard drives this quarter, above 30%. And we're expecting our gross margins to be above 30% again in Q1. So we feel good about that. And as we said, we really want to continue to improve from here. We're going to be very judicious in terms of how we add capacity because we want to continue to improve our margins over time.

是鮑勃。我先開始，然後 Dave 可以加入。但就硬盤驅動器指南而言，我們實際上並沒有具體按細分進行指導。本季度我們的硬盤毛利率非常好，超過 30%。我們預計第一季度的毛利率將再次超過 30%。所以我們對此感覺很好。正如我們所說，我們真的想從這裡繼續改進。我們將在如何增加產能方面非常明智，因為我們希望隨著時間的推移繼續提高我們的利潤率。

Yes. Karl, and the long-term agreements, we kind of think about those as setting a baseline for volume and price. It doesn't mean it's going to be everything that goes into a certain customer, but it sets a baseline and gives us some visibility over multiple quarters. Like I said, we're kind of working our way through the first cohort of those, and we'll be looking at the second ones in the second half of the year. And as I said, I do think they're becoming more important to give us the visibility we need on demand to make sure we make the right investments on to support the exabyte growth.

是的。 Karl 和長期協議，我們有點認為它們為數量和價格設定了基準。這並不意味著它將成為特定客戶的所有內容，但它設定了一個基線並為我們提供了多個季度的一些可見性。就像我說的那樣，我們正在努力完成第一批，我們將在今年下半年關注第二批。正如我所說，我確實認為它們變得越來越重要，因為它們可以按需為我們提供所需的可見性，以確保我們進行正確的投資以支持艾字節的增長。

The next question comes from Mehdi Hosseini from SIG.

下一個問題來自 SIG 的 Mehdi Hosseini。

And the first one is for David. Over the past few quarters, you have exceeded your guide by 40%, 50%. And I understand there is the supply chain disruption and you want to be prudent. But there's -- perhaps there is also some level of conservatism that goes into your guide. And then on the -- for Bob, I understand exabyte shipment is improving into September quarter, but I don't understand is why is gross margin guided flattish.

第一個是給大衛的。在過去的幾個季度裡，你已經超過了你的指導 40%、50%。我知道供應鏈中斷，你要謹慎。但是有——也許你的指南中也有某種程度的保守主義。然後 - 對於鮑勃，我知道艾字節出貨量正在改善到 9 月季度，但我不明白為什麼毛利率引導持平。

Yes. I mean there's always some natural conservatism, I think, in anything we do. But we also -- there's a fair amount of leverage in the model that in this quarter we saw when we overachieved on the top line and we get benefit from the tax rate. So -- and we also had a better pricing environment on drives than we expected, which was great. And we took advantage of it. I think we had a market situation that was very, very dynamic. And the team really did a good job of managing through that and getting the most out of it we possibly could. So it was a very dynamic quarter.

是的。我的意思是，我認為，在我們所做的任何事情中，總會有一些自然的保守主義。但我們也 - 在本季度我們看到的模型中有相當大的槓桿作用，當我們在頂線上取得超額成就並且我們從稅率中受益。所以——而且我們在驅動器上的定價環境也比我們預期的要好，這很棒。我們利用了它。我認為我們的市場情況非常非常有活力。團隊確實做得很好，通過它來管理並儘可能地充分利用它。所以這是一個非常有活力的季度。

And also, we're still managing through COVID, which is -- there's still a lot of supply chain issues we're working through. I mean we've been working through these for a long time now. And we're very good at managing that, but there is still some risk out there because of that. And so we want to be prudent around the whole business. But we feel good about where we're at. We're very, very happy with the quarter. Like I said, I think we got the most out of a good situation and really, really driven by strong demand on the cloud and bringing innovation to market. I mean I think that's the way I think about this.

而且，我們仍在通過 COVID 進行管理，也就是說 - 我們仍在解決許多供應鏈問題。我的意思是我們已經解決了這些問題很長時間了。我們非常擅長管理這一點，但因此仍然存在一些風險。因此，我們希望對整個業務保持謹慎。但我們對自己所處的位置感覺良好。我們對這個季度非常非常滿意。就像我說的那樣，我認為我們從良好的形勢中獲得了最大的收益，並且真的，真的是受到對雲計算的強勁需求和將創新推向市場的推動。我的意思是我認為這就是我思考這個問題的方式。

We brought energy-assist to market. We've been talking about it for many quarters now. We've been giving a lot of visibility into the qualification process because it is new technology that's been worked on for a very, very long time. And I think our customers are responding very strongly to that. And we saw that in the results. And the sequential capacity enterprise exabyte shipments up 49% to really a record level. So we feel really good about where the portfolio is at, and customers are really responding to it.

我們將能源輔助推向市場。我們已經討論了很多個季度了。我們一直在為認證過程提供很多可見性，因為它是一項已經研究了很長時間的新技術。我認為我們的客戶對此反應非常強烈。我們在結果中看到了這一點。連續容量企業艾字節出貨量增長 49%，達到創紀錄水平。因此，我們對產品組合所處的位置感覺非常好，並且客戶確實對此做出了回應。

So Mehdi, on gross margin, I mean, first of all, we're really pleased with the 5.2 percentage point increase we had in gross margin going from Q3 to Q4. And if you look at the guidance for Q1, it's a range of 33% to 35%. So at the midpoint, we're still expecting to see improving gross margin. As I mentioned a few minutes ago, we're expecting hard drive gross margin to be above 30% again. And in terms of the flash side, it'll obviously improve, but the mix is different each quarter. And we're going to improve our gross margins and probably don't have quite as healthy a mix as we had in Q4. But again, still feel really good about the guidance range, and I think we'll deliver a very good margin and very good profitability.

所以 Mehdi，關於毛利率，我的意思是，首先，我們對從第三季度到第四季度的毛利率增長 5.2 個百分點感到非常滿意。如果你看一下第一季度的指導，它的範圍是 33% 到 35%。因此，在中點，我們仍然預計毛利率會有所提高。正如我幾分鐘前提到的，我們預計硬盤的毛利率將再次超過 30%。而在閃存方面，它顯然會有所改善，但每個季度的組合都不同。而且我們將提高我們的毛利率，並且可能沒有像第四季度那樣健康的組合。但同樣，對指導範圍仍然感覺非常好，我認為我們將提供非常好的利潤率和非常好的盈利能力。

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

我們的下一個問題來自美國銀行的Wamsi Mohan。

Congrats on the really strong results. I was hoping maybe -- I'm sorry if I missed this, but can you help handicap the magnitude of impact to top line and margins from the ongoing supply chain issues in the best way possible? And also for the guide, is there a way to handicap that? And Dave, you mentioned the couple of hundred million benefit in the quarter from Chia. I was wondering, do you think that, that sustains at some level as you look into your guide? Do you have any expectation baked in the guide as well?

恭喜你取得了非常好的結果。我希望也許——如果我錯過了這一點，我很抱歉，但你能以最好的方式幫助阻礙持續的供應鏈問題對頂線和利潤的影響程度嗎？而且對於指南，有沒有辦法阻止它？戴夫，您提到了 Chia 在本季度帶來的數億美元收益。我想知道，當您查看您的指南時，您認為這在一定程度上會持續嗎？您對指南也有任何期望嗎？

That sustains from Chia, I think we're -- Chia had a big impact on the channel and the inventory, and it's going to take a little while for that all to normalize. So I think you have a lingering impact there. We're certainly watching overall demand, but it's tapered off from where it was, let's say, mid-quarter. But clearly, a space we're watching very closely. I'll ask Bob to comment as well. It's a little hard to handicap what you're -- I think you're asking, which is how much upside is there if we had all the components we could possibly get.

Chia 維持了這一點，我認為我們 - Chia 對渠道和庫存產生了很大影響，這一切都需要一段時間才能正常化。所以我認為你在那裡有揮之不去的影響。我們當然在關注整體需求，但它已經從它的位置逐漸減少，比方說，在季度中期。但很明顯，這是一個我們正在密切關注的空間。我也會請 Bob 發表評論。很難限制你的身份——我想你在問，如果我們擁有我們可能獲得的所有組件，那麼會有多少上升空間。

I do think what we do is with what we have, we change the mix in the portfolio to get the best we can and put the product at the best route to market, whether it's in the channel or somewhere -- or into retail or somewhere else where we can get the best return for that particular component. But I don't know, Bob, do you have any way -- not to put you on the spot, but could you sort of handicap that from a numbers prospective?

我確實認為我們所做的是利用我們所擁有的，我們改變產品組合中的組合，以盡我們所能，並將產品置於最佳的市場途徑，無論是在渠道中還是在某個地方——或者進入零售或某個地方否則我們可以獲得該特定組件的最佳回報。但我不知道，鮑勃，你有什麼辦法——不要讓你當場，但你能從數字的角度來限制它嗎？

No, it's really hard to say. I mean, we -- as Dave said, I mean, particularly on the channel side, we shipped a lot during the quarter. So our inventory levels are low there. If you really force us to guess on the fourth quarter, maybe we missed out on $50 million to $100 million in revenue, but it's very hard to quantify what we would have been able to do had we had all the controllers that we wanted.

不，真的很難說。我的意思是，我們 - 正如戴夫所說，我的意思是，特別是在渠道方面，我們在本季度出貨了很多。所以我們的庫存水平很低。如果你真的強迫我們猜測第四季度，也許我們錯過了 5000 萬到 1 億美元的收入，但如果我們擁有我們想要的所有控制器，我們很難量化我們能夠做什麼。

And as we look at Q1, I mean, we're expecting to be able to manage through the supply chain challenges like we have for the last few quarters. And I don't really know. It's hard to quantify before we even get into the quarter what the supply issues may be. But we're going to work, and it will be a very dynamic environment, and we feel good about the revenue guidance we gave.

當我們看第一季度時，我的意思是，我們希望能夠像過去幾個季度一樣應對供應鏈挑戰。我真的不知道。在我們進入本季度之前，很難量化供應問題可能是什麼。但我們會努力工作，這將是一個非常動態的環境，我們對我們提供的收入指導感覺很好。

If I could just quickly follow up. I was wondering just on the margin impact on the guide, right? So clearly, there are a lot of moving pieces over here. But if you were to think about what impact COVID Delta variant, some of the things that are happening in Asia, like how are you handicapping that in your margin impact on the guide?

如果我能盡快跟進。我只是想知道對指南的邊距影響，對嗎？很明顯，這裡有很多動人的部分。但是，如果您要考慮對 COVID Delta 變體的影響，亞洲正在發生的一些事情，例如您如何在對指南的利潤影響中限制它？

Well, certainly, on the hard drive side, I'm expecting we're going to have the same logistics challenges we've had for the last year or so. So you're going to have something in the neighborhood of 1.2, 1.3 percentage points of headwind on the hard drive side. And we have to continue to work through the COVID situation from a factory perspective and supply chain perspective. And as Dave said, we've been doing it for a lot of quarters now. But the situation is not good in Asia, and we need to really make sure we're careful in terms of how we work through that.

好吧，當然，在硬盤方面，我預計我們將面臨與過去一年左右相同的物流挑戰。所以你會在硬盤方面遇到大約 1.2、1.3 個百分點的逆風。我們必須繼續從工廠的角度和供應鏈的角度來應對 COVID 的情況。正如戴夫所說，我們已經做了很多個季度了。但是亞洲的情況並不好，我們需要真正確保我們在如何解決這個問題時保持謹慎。

The next question comes from Jim Suva from Citigroup.

下一個問題來自花旗集團的 Jim Suva。

With NAND pricing going higher, spot and contract and such, can you talk to us a little bit about your leverage or flow-through to operating margins? Because I believe your cost should keep coming lower. Shipping costs while high, it's hard to see them getting worse in the next few months ahead. So maybe if you can walk us through the model of -- normally, you have annual price declines. And with ASPs going higher, is there more investment needed or more fixed things? Or talk to us about the flow-through of what we consider operating margin leverage?

隨著 NAND 價格上漲，現貨和合同等價格上漲，您能否與我們談談您的槓桿或流向營業利潤率的情況？因為我相信你的成本應該會越來越低。運輸成本雖然很高，但在未來幾個月內很難看到它們變得更糟。因此，也許如果您可以向我們介紹 - 通常情況下，您的價格每年都會下降。隨著平均售價的提高，是否需要更多的投資或更多的固定資產？或者與我們談談我們認為的營業利潤率槓桿的流通？

Well, we have a lot of operating leverage in our model, and I think you saw that come into play this quarter. I mean I think it was a really impressive improvement in terms of gross margin sequentially. And a lot of what we saw on the pricing side did flow through. I mean as we said, we saw a lot of demand on the channel, driven by Chia in most cases. But across the board, we saw a good environment. And I think the team did a good job of reacting dynamically and trying to properly price the products as we went through the quarter.

好吧，我們的模型中有很多運營槓桿，我想你已經看到了這個季度的影響。我的意思是，我認為這在毛利率方面是一個非常令人印象深刻的改善。我們在定價方面看到的很多東西都流淌了出來。我的意思是，正如我們所說，我們看到渠道上有很多需求，在大多數情況下是由 Chia 推動的。但從整體上看，我們看到了良好的環境。而且我認為團隊在本季度的動態反應和嘗試對產品進行適當定價方面做得很好。

So we're going to continue to do that same kind of thing as we move forward. And we are going to see cost takedowns. We had very good cost takedowns in Q4 on both the hard drive side and on the flash side. And as we keep price flat or even increase price, then that's obviously going to only help in terms of operating leverage.

因此，在我們前進的過程中，我們將繼續做同樣的事情。我們將看到成本下降。在第四季度，我們在硬盤方面和閃存方面都有很好的成本降低。當我們保持價格持平甚至提高價格時，這顯然只會在運營槓桿方面有所幫助。

Our next question comes from Patrick Ho from Stifel.

我們的下一個問題來自 Stifel 的 Patrick Ho。

Dave, in terms of the activity you're doing with cloud and hyperscale and the pickup you're seeing there, can you talk about any qualitatively new customer wins, whether it's cloud, hyperscale or data centers? With the new 18-terabyte drives, can you at least qualitatively talk about the adoption rate and whether you're seeing adoption from existing customers who are transitioning or even new customers that weren't previously on your mass capacity storage drives?

戴夫，就您在雲和超大規模方面所做的活動以及您在那裡看到的皮卡而言，您能談談任何質量上的新客戶勝利，無論是雲、超大規模還是數據中心？對於新的 18 TB 驅動器，您能否至少定性地談論採用率，以及您是否看到正在轉型的現有客戶甚至是以前不在您的大容量存儲驅動器上的新客戶的採用？

Yes. So at this point, I think it's where they're at in the architectural evolution of their data center of how they're adopting the technology. As far as qualification -- so first of all, I mean, if you're building a cloud, you're most likely our customer. Hard drives are the lion's share of storage in the cloud. But we're seeing wide adoption, I guess, is the only way I can say it. I mean it's -- our customers -- different customers will be at different stages of their architectural evolution. Some are going to 18 as fast as they can.

是的。所以在這一點上，我認為這是他們在數據中心的架構演變中如何採用該技術的地方。至於資格——首先，我的意思是，如果你正在構建雲，你很可能是我們的客戶。硬盤驅動器是雲中存儲的最大份額。但我想，我們看到廣泛採用是我能說的唯一方式。我的意思是——我們的客戶——不同的客戶將處於其架構演變的不同階段。有些人會盡可能快地達到 18 歲。

Some are working through a 14 transition, let's say, in the second half of the year and then will move to 18. Some are going through 16. So at this point, it's just a question of how they're all transitioning their data centers. And again, we saw really strong growth throughout the quarter. As Bob said it's nearly half of our exabyte ship -- capacity enterprise exabyte shipments were on 18. So we feel really good about where the product is. And like I said, the innovation of energy-assist has been fully commercialized and has been well received by our customers.

有些人正在經歷 14 的過渡，比方說，在下半年，然後將轉移到 18。有些人正在經歷 16。所以在這一點上，這只是他們如何過渡他們的數據中心的問題.再一次，我們在整個季度看到了非常強勁的增長。正如 Bob 所說，這幾乎是我們 EB 出貨量的一半——容量企業 EB 出貨量是 18。所以我們對產品的位置感覺非常好。就像我說的，能源輔助的創新已經完全商業化，並得到了我們客戶的好評。

Our next question comes from Harlan Sur from JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

In addition to the SSD controller shortages, we've heard of tight HDD controller and preamp chip supply as your ASIC semiconductor partners are pretty constrained and lead times are pretty stretched. And so if the team had more HDD controller and preamp supply, would you be able to ship more HDDs here in the September quarter? Or is more of the HDD shipment constraints in September being driven by other component constraints or media and head manufacturing or just potential pandemic-related operations disruptions?

除了 SSD 控制器短缺之外，我們還聽說 HDD 控制器和前置放大器芯片供應緊張，因為您的 ASIC 半導體合作夥伴非常有限，交貨時間也非常緊張。因此，如果團隊有更多的硬盤控制器和前置放大器供應，您能否在 9 月季度在這裡運送更多硬盤？還是 9 月份更多的 HDD 出貨限制是由其他組件限製或媒體和磁頭製造或僅僅是潛在的與大流行相關的運營中斷所驅動？

Harlan, this is Bob. We're basically running at full capacity in the September quarter on the hard drive side. So it's not easy to get the parts, and that's definitely true. But in the September quarter, I don't see it as a big factor. We'll see how that plays out as we get to the December quarter and beyond.

哈蘭，這是鮑勃。在硬盤方面，我們基本上在 9 月季度滿負荷運行。所以得到零件並不容易，這絕對是真的。但在 9 月季度，我不認為這是一個重要因素。當我們進入 12 月季度及以後，我們將看到它是如何發揮作用的。

Yes, Harlan, I was going to say the same thing. I mean we've got folks in the factories working overtime and to get every drive we can out. I mean the team is obviously balancing the supply chain issues to get all the components we need. But we've got that covered in September. And so keeping -- again, we're -- these are in places where COVID is a big deal, and we've been really good about managing through that, but certainly got our eye on. But we're really pushing very hard to get all the components we can -- all the drives we can.

是的，哈蘭，我也想說同樣的話。我的意思是我們讓工廠裡的人加班加點，竭盡所能。我的意思是，團隊顯然正在平衡供應鏈問題，以獲取我們需要的所有組件。但我們已經在 9 月份完成了這項工作。所以保持 - 再次，我們 - 這些都是在 COVID 很重要的地方，我們在管理方面做得非常好，但肯定會引起我們的注意。但我們真的非常努力地獲得所有我們能得到的組件——我們能得到的所有驅動器。

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

下一個問題來自巴克萊的 Tom O'Malley。

I just want to circle up on a comment you made earlier. You said that Chia had a big impact on the channel. I'm looking at inventory. Inventory days are flat on a dollars basis, down on a days basis. Can you kind of comment on the mix of inventory? I would assume with some of the HDD activity you saw during the quarter, the channel has kind of been wound down a bit. Is there any color you can give on the mix of businesses within the inventory that you have this quarter?

我只是想總結一下你之前發表的評論。你說Chia對頻道的影響很大。我在看庫存。庫存天數按美元計算持平，按天數下降。你能評論一下庫存的組合嗎？我會假設您在本季度看到的一些 HDD 活動，頻道已經有點收緊了。您可以對本季度庫存中的業務組合給出任何顏色嗎？

Yes. In terms of our inventory, the turns are up quite a bit on the hard drive side, and I'd say relatively flat, maybe even slightly worse on the flash side. And that's -- we're going through a nodal transition. It's not a big surprise there. So -- and the flow-through, as you saw, was up significantly during the quarter.

是的。就我們的庫存而言，硬盤方面的轉數上升了很多，我會說相對平穩，閃存方面可能會稍微差一些。那就是 - 我們正在經歷一個節點過渡。這不是一個大驚喜。所以——正如你所看到的，本季度的流通量顯著增加。

The next question comes from Sidney Ho from Deutsche Bank.

下一個問題來自德意志銀行的 Sidney Ho。

Great. My question is on capital intensity. You talked about gross CapEx for fiscal '22 being $3.1 billion, and that would be roughly 15% of fiscal first quarter revenue run rate. Is that the right capital intensity we should be thinking about? Maybe you can comment on both HDD and NAND, that will be great. And what kind of assumptions are you expecting in terms of bit growth coming out of the NAND side of things?

偉大的。我的問題是關於資本密集度。您談到 22 財年的總資本支出為 31 億美元，這大約是第一財季收入運行率的 15%。這是我們應該考慮的正確的資本密集度嗎？也許您可以同時評論 HDD 和 NAND，那會很棒。對於 NAND 方面的位增長，您期望什麼樣的假設？

Yes. So a few questions in there. So first of all, in terms of CapEx, we exited FY '21 around $3 billion in gross CapEx, and that's what we're expecting again in FY '22. We are well on our way in terms of the ramp on BiCS5 in terms of the capital investment. And we'll have to obviously continue to invest in both businesses. We've got 2 growing businesses, and they are going to require capital going forward.

是的。所以里面有幾個問題。因此，首先，就資本支出而言，我們在 21 財年的總資本支出約為 30 億美元，這也是我們對 22 財年的再次預期。就資本投資而言，我們在 BiCS5 的坡道方面進展順利。而且我們顯然必須繼續投資這兩項業務。我們有 2 家成長中的企業，他們將需要資金向前發展。

On the hard drive side, we're at the point where we can no longer transition assets from the client side of the business to the capacity enterprise business. And so that means we have to be pretty cautious in terms of investments we make. That's part of why we've done some of these long-term agreements. And we're going to continue to be very careful in terms of capacity we've put in place. And on the flash side, the goal, as we've been saying, is to really grow bits at the rate that the market is growing. And we think over the long term, we'll be able to do that.

在硬盤方面，我們無法再將資產從業務的客戶端轉移到容量企業業務。所以這意味著我們在投資方面必須非常謹慎。這就是我們達成其中一些長期協議的部分原因。我們將繼續對我們已經到位的容量非常謹慎。在閃存方面，正如我們一直在說的那樣，目標是以市場增長的速度真正增長比特。我們認為從長遠來看，我們將能夠做到這一點。

The next question comes from Shannon Cross from Cross Research.

下一個問題來自 Cross Research 的 Shannon Cross。

I have maybe a bigger picture question. I'm just wondering how are you thinking about the inflationary environment. Are you hearing from any customers that there's some pushback because of elasticity of demand, given price increases? And then just internally, how are you thinking about managing higher costs and not necessarily next quarter, but just in general, as we face more inflation?

我可能有一個更大的問題。我只是想知道您如何看待通貨膨脹環境。您是否從任何客戶那裡聽說，鑑於價格上漲，由於需求彈性而存在一些阻力？然後就在內部，您如何考慮管理更高的成本，不一定是下個季度，而是總體而言，因為我們面臨更多的通貨膨脹？

Yes. It's a good question, Shannon. And we're definitely facing inflationary pressures across the board. We've talked about the semiconductor components already on this call, and we're seeing lead times extend out. We're seeing challenges on the cost side as well. And we're going to -- we think we're going to face that across a number of different commodities.

是的。這是個好問題，香農。我們肯定面臨全面的通脹壓力。我們已經在這次電話會議上討論了半導體組件，並且我們看到交貨時間延長了。我們也看到了成本方面的挑戰。而且我們將 - 我們認為我們將在許多不同的商品中面對這一點。

And that's the discussion we need to have with our customers as well. And I think most of them are also facing inflationary pressures. So it's not something that you can work out in a single quarter. But I think over time, we've got to make sure we're getting obviously an adequate return on the investments we're making from a CapEx standpoint and the costs that we have in each of the products.

這也是我們需要與客戶進行的討論。而且我認為他們中的大多數人也面臨著通脹壓力。所以這不是你可以在一個季度內完成的事情。但我認為，隨著時間的推移，我們必須確保從資本支出的角度來看，我們所做的投資以及我們在每種產品中的成本顯然都能獲得足夠的回報。

Our next question comes from Nik Todorov from Longbow Research.

我們的下一個問題來自 Longbow Research 的 Nik Todorov。

Congrats on great results from me as well. Dave, I think you -- can you hear me?

也祝賀我取得了很好的成績。戴夫，我想你——你能聽到我說話嗎？

Yes, please go ahead.

是的，請繼續。

Yes, yes, yes. You talked about more customers looking for upside on the NAND side in the September quarter, and it sounds like you're pretty constrained. But if I look at your guide, it implies to, at best, the modest low single-digit NAND ASP increase. I wonder why you're not able to get better pricing leverage on the NAND. I think you talked about mix changing in the September quarter. If that's the big driver, can you please give us more detail? How do you see the mix shifting on the NAND? Is there any lumpiness in the enterprise SSD mix in the September quarter?

對對對。您談到在 9 月季度有更多客戶在 NAND 方面尋求上漲空間，聽起來您受到了很大的限制。但是，如果我查看您的指南，這意味著，充其量只是適度的低個位數 NAND ASP 增長。我想知道為什麼你不能在 NAND 上獲得更好的定價槓桿。我認為您談到了 9 月季度的組合變化。如果那是大驅動因素，你能告訴我們更多細節嗎？您如何看待 NAND 上的混合變化？ 9 月季度的企業 SSD 組合是否有任何波動？

Yes. No, I think you got it. I mean, again, we're running a portfolio across 4 or 5 major pillars: enterprise SSD, mobile, consumer and the anchor of the portfolio, client SSD and then, of course, positions in gaming, IoT, automotive. But every quarter, the mix is going to be different across that. And obviously, the pricing is changing at different rates across those markets.

是的。不，我想你明白了。我的意思是，我們再次在 4 或 5 個主要支柱上運行產品組合：企業 SSD、移動設備、消費者和產品組合的主力、客戶端 SSD，當然還有遊戲、物聯網、汽車領域的職位。但每個季度，混合情況都會有所不同。顯然，這些市場的定價以不同的速度變化。

We're clearly trying to shift as much as we can into the higher-margin markets. But every quarter, the mix is going to be a little bit different. And depending on what our commitments are, we have commitments to customers as to how much we're going to supply in any given quarter. So when you put that all together, the mix is a little different in Q1. And I think that's where you've got some of the difference coming from and the way you're thinking about it.

我們顯然正試圖盡可能多地轉向利潤率更高的市場。但每個季度，組合都會有所不同。根據我們的承諾，我們向客戶承諾我們將在任何給定季度供應多少。因此，當您將所有這些放在一起時，第一季度的組合略有不同。我認為這就是你有一些差異的地方以及你思考它的方式。

The next question comes from Ananda Baruah from Loop Capital.

下一個問題來自 Loop Capital 的 Ananda Baruah。

Congrats on the strong results. I guess just really -- the question really is around the margins and structural margins on both sides of the business. Do you think, over time, structurally, the margins can move higher from here? And what would be sort of the pushes and pulls or the sort of the dynamics? Like what would things have to look like? What would have to get done for on both sides of the business for that to happen and kind of structurally higher meaningfully, nicely structurally higher?

恭喜取得了不錯的成績。我想真的 - 問題實際上是圍繞業務雙方的利潤率和結構性利潤率。您是否認為，隨著時間的推移，從結構上講，利潤率可以從這裡提高嗎？什麼樣的推動和拉動或什麼樣的動力？就像事情必須看起來像什麼？為了實現這一點，並且在結構上有意義地更高，結構上很好地更高，業務雙方必須做些什麼？

So I think the answer to that is -- I don't think -- the answer to that is yes. Let's go through each business. On the drive side, we saw a big step up this quarter, driven by a number of things. We've been talking about the 18-terabyte. Capacity point is much better for us for a number of quarters now, and we saw that play out. We obviously got some benefit from Chia as well, but predominantly innovation-led story from my perspective.

所以我認為答案是——我不認為——答案是肯定的。讓我們來看看每一項業務。在驅動方面，本季度我們看到了很大的進步，這是由許多事情驅動的。我們一直在談論 18 TB。容量點對我們來說已經好幾個季度了，我們看到了這一點。我們顯然也從 Chia 中獲得了一些好處，但在我看來，主要是創新主導的故事。

But we believe this business inside our company needs to be more profitable. We've talked about it several times on this call. We're now looking at this transition from client capacity to capacity enterprise, nearline or enterprise drives that is -- that era is coming to an end. It's been a long one. It's been -- it's taken a decade to go through that transition. But when we look at the exabyte growth going forward, that's going to take investment, and we want that investment to be fully justified.

但我們相信我們公司內部的這項業務需要更有利可圖。我們已經在這次電話會議上多次討論過它。我們現在正在研究從客戶端容量到容量企業、近線或企業驅動器的這種轉變——那個時代即將結束。這是一個很長的時間。過去 - 經歷了這種轉變需要十年時間。但是，當我們看到未來的艾字節增長時，這將需要投資，我們希望這種投資是完全合理的。

So -- and again, it's no surprise to me that now we're talking about these more longer-term agreements. And again, we're early days in those, but those are the conversations with customers. I remember when I came in this business, whatever, 5 quarters ago, everything was transacted on a quarterly or even within the quarter basis. And now we're moving to, in parts of the business, multi-quarter basis. And I think that will continue because we need more visibility into demand to make sure we can continue to fuel the growth of the cloud.

所以 - 再一次，我並不奇怪現在我們正在談論這些更長期的協議。再說一次，我們還處於早期階段，但這些都是與客戶的對話。我記得當我進入這個行業時，無論如何，在 5 個季度前，一切都是按季度甚至在季度內進行的。現在，在部分業務中，我們正在轉向多季度。我認為這將繼續下去，因為我們需要更多地了解需求，以確保我們能夠繼續推動雲計算的發展。

I think the cloud is an incredible technology, the seminal technology of our era, as I like to say, and continuing to fuel the growth of that is very important. And 35% exabyte growth is going to take investment, and I think that's going to take -- we're going to want to see the internals of our business to be able to support that.

我認為雲是一項令人難以置信的技術，是我們這個時代的開創性技術，正如我喜歡說的那樣，繼續推動其發展非常重要。 35% EB 的增長將需要投資，我認為這將需要 - 我們希望看到我們的業務內部能夠支持這一點。

So on the flash side, we're going to -- just one final comment on that. We're also continuing to innovate in hard drives and drive costs down as well. I think -- we think about cost downs more in the flash business, but we also continue to drive them in the drive business. So we have that dynamic working as well.

因此，在閃存方面，我們將要-- 僅對此發表最後一條評論。我們還在繼續創新硬盤驅動器並降低成本。我認為 - 我們更多地考慮閃存業務的成本下降，但我們也繼續在驅動器業務中推動它們。所以我們也有這種動態的工作。

And on flash, we all know about how dynamic the pricing environment is. We feel very good about our technology road map. We've talked about that. We're at the transition point to BiCS5. We feel good about that node. As we transition to that over the next couple of quarters, we'll see our bit growth accelerate. And that foundational investment with Kioxia, I think, puts us in a very good position to have the technology road map to structurally support margins in the business.

在閃存上，我們都知道定價環境的動態性。我們對我們的技術路線圖感覺很好。我們已經談過了。我們正處於向 BiCS5 的過渡點。我們對那個節點感覺很好。隨著我們在接下來的幾個季度過渡到這一點，我們將看到我們的比特增長加速。我認為，與 Kioxia 的基礎性投資使我們處於非常有利的位置，可以製定技術路線圖來從結構上支持業務利潤率。

Clearly, a better pricing environment, as we're seeing, helps margins in that business. We expect it to be better next quarter. That's the way we're guiding. And as we look even beyond the second half and we look into next year, we continue to see a strong demand environment that's getting out there pretty far.

顯然，正如我們所看到的，更好的定價環境有助於該業務的利潤率。我們預計下個季度會更好。這就是我們正在引導的方式。當我們展望下半年甚至展望明年時，我們繼續看到一個強勁的需求環境，而且已經走得很遠。

But from what our customers are telling us on what they think the demand is going to be for their products, like I said, we're all more technology-dependent than ever, we continue to hear good things about what they're going to be asking for next year. So structurally, we think with the technology, with the innovation we're driving in both portfolios, that puts us in a good position to continue to drive profitability in these businesses.

但是從我們的客戶告訴我們他們認為他們的產品的需求將是什麼，就像我說的那樣，我們都比以往任何時候都更加依賴技術，我們繼續聽到關於他們將要做什麼的好消息要求明年。因此，從結構上講，我們認為憑藉我們在兩個投資組合中推動的技術和創新，這使我們處於繼續推動這些業務盈利能力的有利位置。

Our next question comes from Srini Pajjuri from SMBC Nikko Securities.

我們的下一個問題來自 SMBC Nikko Securities 的 Srini Pajjuri。

David, on the enterprise SSD front, I think you said it grew 39% quarter-on-quarter. Obviously, a very strong quarter. Just curious if it's driven primarily by end demand and if there were any new customer ramps as well. And also if you could talk about if there was any contribution from Chia on the SSD side as well, I think that would be helpful.

大衛，在企業 SSD 方面，我想你說它環比增長了 39%。顯然，這是一個非常強勁的季度。只是好奇它是否主要由最終需求驅動，以及是否有任何新的客戶增加。此外，如果您能談談 Chia 在 SSD 方面是否也有任何貢獻，我認為這會有所幫助。

Yes. The first one, just quickly, very minimal contribution from Chia in the enterprise SSD market. Yes, we are happy with the sequential growth of the product. And we did complete a qualification at another cloud titan, which is something we've had our eyes on for a while and we've talked about. We haven't started ramping there yet, but we'll see that in the second half of the year. We also saw good demand in the channel on enterprise SSD.

是的。第一個，很快，Chia 在企業 SSD 市場的貢獻非常小。是的，我們對產品的連續增長感到滿意。我們確實在另一個雲巨頭完成了資格認證，這是我們已經關注了一段時間並且已經討論過的事情。我們還沒有開始在那裡加速，但我們會在今年下半年看到這一點。我們還看到了渠道對企業級 SSD 的良好需求。

So we qualified with one of the very big players, and we see continued growth there. We're seeing good acceptance in the channel and growth there. And now we're layering in additional major customers as we go into the second half of the year. So we feel good about how the product is being accepted. Again, a lot of innovation in our product. We've been talking about that for many quarters, again, giving visibility into the qualification process. And now we're well into the ramp and feel good about where we're at and where it's going and how it's being accepted by our customers.

因此，我們與其中一位非常大的球員取得了資格，並且我們看到了那裡的持續增長。我們在渠道中看到了良好的接受度和增長。現在，隨著我們進入下半年，我們正在增加更多的主要客戶。所以我們對產品被接受的方式感覺很好。同樣，我們的產品有很多創新。我們已經討論了好幾個季度了，再次讓我們了解資格認證過程。現在我們已經進入了坡道，並且對我們所處的位置、前進的方向以及我們的客戶如何接受它感到滿意。

Our next question comes from Mark Miller from The Benchmark Company.

我們的下一個問題來自 The Benchmark Company 的 Mark Miller。

Just was wondering, the SSD space, do you feel you're picking up share?

只是想知道，SSD 空間，你覺得你正在增加份額嗎？

I suspect we're picking up share, yes. As we grow -- I don't think the market grew sequentially 39%. Again, we're focused on profitable share gains. But this has been a focus for us to get that product introduced, it's a very attractive market, and get it qualified in as many places as we can. But yes, we're going to continue driving for growth quarter-over-quarter.

我懷疑我們正在增加份額，是的。隨著我們的成長——我認為市場不會連續增長 39%。同樣，我們專注於盈利的份額收益。但這一直是我們推出該產品的重點，這是一個非常有吸引力的市場，並在盡可能多的地方使其合格。但是，是的，我們將繼續推動季度環比增長。

And the last question comes from Tristan Gerra from Baird.

最後一個問題來自 Baird 的 Tristan Gerra。

You've given some puts and takes about the gross margin criteria for hard disk drive. How should we look at the potential for gross margin longer term? You've mentioned you're already at full capacity. Can you go higher, given new customer mix? And given the purchasing power that some of your large data center customers have without COVID expenses, is a longer-term 35% outlook possible. If you could just provide a bit more color on what you think are the catalysts going forward.

您已經給出了一些關於硬盤驅動器毛利率標準的看跌期權。我們應該如何看待長期毛利率的潛力？你已經提到你已經滿負荷了。考慮到新的客戶組合，你能走得更高嗎？鑑於您的一些大型數據中心客戶在沒有 COVID 費用的情況下擁有的購買力，35% 的長期前景是可能的。如果你能提供更多關於你認為是未來催化劑的顏色。

Yes. I mean, as we -- I think as we've talked about, we're in this period in the hard drive business, where it's been transitioning for a long time from a business that was client-dominated to a business that is cloud-dominated is, I guess, one way to think about it. And if we look at the utilization of our factories, you can see that very clearly, year-over-year, the percentage of drives that were headed for the cloud versus the ones that are headed for clients has been steadily shifting over a decade.

是的。我的意思是，正如我們 - 我認為正如我們已經談到的那樣，我們正處於硬盤業務的這個時期，它已經從以客戶為主導的業務轉變為以雲計算的業務已經很長時間了- 支配是，我想，一種思考方式。如果我們查看我們工廠的利用率，您會非常清楚地看到，過去十年來，用於雲計算的驅動器與用於客戶端的驅動器的百分比一直在穩步變化。

And now we're at the point where we're looking at investments in -- both in heads and also when you build the bigger drive, it takes longer to test, all those kinds of things, testing capacity in the factory. So yes, as we go through those conversations, it's really important to understand from our customers what their growth is going to be. We see 30% to 35% exabyte growth in the cloud for the foreseeable future. We want to make sure that they see that same amount.

現在我們正在考慮投資——無論是在頭部還是在你建造更大的驅動器時，都需要更長的時間來測試，所有這些東西，工廠的測試能力。所以是的，當我們進行這些對話時，從我們的客戶那裡了解他們的增長將是什麼非常重要。在可預見的未來，我們看到雲的增長 30% 到 35% EB。我們希望確保他們看到相同的數量。

And as we align on that growth and we invest in our business to support it, I think that's where this idea of long-term agreements come in place and to help drive the profitability for the business. We think the innovation is delivering. I mean it starts with delivering a product that is very -- solves our customers' problem. And we're delivering a very strong TCO model with every generation of this product that we build. We're driving a lot of innovation. We talked about it here with energy-assist, which is something that we've been working on for quite some time.

當我們與這種增長保持一致並投資於我們的業務以支持它時，我認為這就是長期協議的想法出現的地方，並有助於推動業務的盈利能力。我們認為創新正在發揮作用。我的意思是，它首先要交付一種非常 - 解決我們客戶問題的產品。我們正在為我們構建的每一代產品提供一個非常強大的 TCO 模型。我們正在推動很多創新。我們在這裡用能量輔助討論了它，這是我們已經研究了很長時間的東西。

And quite frankly, it's a good accomplishment for the team, a great accomplishment. It feels good to take something that was an idea many, many years ago and now turn it into something where the largest customers in the world are betting their business and their data center on that innovation. And so to continue to fuel that innovation engine, and we've got many, many innovations lined up to continue to drive the portfolio and making sure we can invest in that and meet the growth of our customers. Getting the economics of that right is very important.

坦率地說，這對團隊來說是一個很好的成就，一個偉大的成就。將很多很多年前的想法變成現在世界上最大的客戶正在將他們的業務和數據中心押在該創新上的東西感覺很好。因此，為了繼續推動創新引擎，我們已經安排了許多創新，以繼續推動產品組合，並確保我們可以投資並滿足客戶的增長。獲得正確的經濟學是非常重要的。

All right, everybody. Thanks for your time today. We really appreciate it. We'll be seeing you throughout the quarter. Thanks very much.

好吧，大家。感謝您今天的時間。我們真的很感激。我們將在整個季度見到你。非常感謝。

Yes. Thanks, everybody.

是的。謝謝大家。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

謝謝你們，女士們，先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連接。