威騰電子 (WDC) 2020 Q3 法說會逐字稿

Good afternoon and thank you for standing by. Welcome to Western Digital's Fiscal Third Quarter 2020 Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

下午好，感謝您的支持。歡迎參加西部數據 2020 財年第三季度電話會議。 （操作員說明）作為提醒，此通話正在錄音中。

Now I will turn the call over to Mr. Peter Andrew. You may begin.

現在我將把電話轉給彼得安德魯先生。你可以開始了。

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

好的。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 does contain forward-looking statements, including product development 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-Q filed with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially.

在開始之前，讓我提醒大家，今天的討論確實包含前瞻性陳述，包括基於管理層當前假設和預期的產品開發預期、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。請參閱我們最近向美國證券交易委員會提交的表格 10-Q 財務報告，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以及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.

有了這個，我現在將把電話轉給大衛。

Thanks, Peter. I would like to thank everyone for joining us this afternoon, and I hope that you and your families are well given the COVID-19 pandemic we are all facing.

謝謝，彼得。我要感謝大家今天下午加入我們，並希望您和您的家人在我們都面臨的 COVID-19 大流行中一切順利。

I joined Western Digital a little over a month ago because I have strong conviction in the digital transformation that is reshaping every industry, every company and how all of us live our daily lives. This transition will continue to rapidly increase the amount of data generated, stored and consumed in the world.

一個多月前，我加入了西部數據，因為我堅信數字化轉型正在重塑每個行業、每個公司以及我們所有人的日常生活方式。這種轉變將繼續迅速增加世界上生成、存儲和消費的數據量。

Western Digital is uniquely positioned to accelerate and benefit from this transformation as the only company providing a broader array of NAND flash, SSD and HDD solutions. We have a strong portfolio, established footprint, operational scale, brand and great customer relationships from the cloud to the edge to the endpoint. On today's call, we'll discuss what we're doing to position the company for continued success and to be best prepared to capture the significant opportunities in front of us.

作為唯一一家提供更廣泛的 NAND 閃存、SSD 和 HDD 解決方案的公司，西部數據具有獨特的優勢，可以加速這一轉型並從中受益。我們擁有強大的產品組合、成熟的足跡、運營規模、品牌以及從雲到邊緣再到端點的良好客戶關係。在今天的電話會議上，我們將討論我們正在做些什麼來為公司定位以取得持續成功，並為抓住擺在我們面前的重大機遇做好最充分的準備。

While I couldn't have anticipated the unprecedented series of events that have transpired since I joined the company on March 9, I do believe that the underpinnings of the technology architecture we are all now leveraging on a daily basis has been well established over the past several years. The public cloud rapidly accelerating innovation across a wide array of increasingly intelligent devices, all brought together by high-speed networks. All elements of this architecture are continually upgraded, new cloud APIs, new and more powerful edge and endpoint capabilities and emerging 5G networks. Increased capabilities across any point of this architecture drive incremental opportunity for all that participate in the ecosystem.

雖然我無法預料自 3 月 9 日加入公司以來發生的一系列史無前例的事件，但我確實相信，我們現在每天都在利用的技術架構的基礎在過去已經很好地建立起來幾年。公共雲在各種日益智能的設備上迅速加速創新，所有這些設備都由高速網絡匯集在一起。該架構的所有元素都在不斷升級、新的雲 API、新的更強大的邊緣和端點功能以及新興的 5G 網絡。在此架構的任何一點上增加的功能都會為所有參與生態系統的人帶來更多的機會。

Data is the critical component that unlocks value across this ecosystem, and our portfolio is well positioned from the cloud to the edge to the endpoint. I'm confident our team's innovation in NAND and HDD technologies will drive significant new opportunity for our customers and value for our shareholders. As you can probably tell, I'm excited to be here and see great opportunities for Western Digital.

數據是在整個生態系統中釋放價值的關鍵組成部分，我們的產品組合從雲到邊緣再到端點都處於有利位置。我相信我們團隊在 NAND 和 HDD 技術方面的創新將為我們的客戶帶來重要的新機遇，並為我們的股東創造價值。正如您可能知道的那樣，我很高興來到這裡並看到西部數據的巨大機會。

Before we review our results for the third quarter, I would like to address how we are operating amid the COVID-19 pandemic. First and foremost, our priority is to ensure the health, safety and well-being of our employees, customers and suppliers. We are carefully following precautionary measures and best practices across our global sites and all production facilities remain operational.

在我們回顧第三季度的業績之前，我想先談談我們在 COVID-19 大流行中的運作方式。首先，我們的首要任務是確保我們的員工、客戶和供應商的健康、安全和福祉。我們正在全球各地的工廠仔細遵循預防措施和最佳實踐，所有生產設施均保持運營。

We encountered some supply disruptions in the quarter. However, due to the efforts of our operations team, we saw supply trends improve as the quarter progressed. We also incurred additional costs associated with logistics and other manufacturing activity.

我們在本季度遇到了一些供應中斷。然而，由於我們運營團隊的努力，我們看到供應趨勢隨著季度的進展而有所改善。我們還產生了與物流和其他製造活動相關的額外成本。

Demand remained strong in the third quarter as expected. Revenue was $4.2 billion, right at the midpoint of the guidance provided in January.

正如預期的那樣，第三季度的需求依然強勁。收入為 42 億美元，正好是 1 月份提供的指導的中點。

We experienced healthy demand from our major cloud customers throughout the quarter and maintained our leading position in the capacity enterprise drive category. The current environment has accelerated the movement to the cloud, transforming the way businesses operate, students learn, and the way friends and families connect. These trends will continue to drive innovation and data storage growth for a number of years, and we are well positioned.

我們在整個季度都經歷了主要雲客戶的健康需求，並保持了我們在容量企業驅動器類別中的領先地位。當前的環境加速了向雲的遷移，改變了企業運營、學生學習以及朋友和家人聯繫的方式。這些趨勢將在數年內繼續推動創新和數據存儲增長，我們處於有利地位。

High-capacity hard drives are the foundation to enabling the world's essential zettabyte scale data infrastructure, providing unmatched capacity and TCO efficiency. Our 14-terabyte products continued to perform well, and industry analysts expect this capacity point to remain the industry's highest volume drive, at least through the third quarter of calendar 2020.

大容量硬盤驅動器是啟用全球重要的 zettabyte 級數據基礎設施的基礎，可提供無與倫比的容量和 TCO 效率。我們的 14 TB 產品繼續表現良好，行業分析師預計，至少到 2020 年第三季度，該容量點仍將是業界最高的容量驅動器。

We are leading the industry in bringing next-generation energy-assisted drives to market as we recognize revenue for our 16- and 18-terabyte drives during the quarter. Customer interest in these products, specifically our 18-terabyte drive is very high and the ramp is on schedule.

我們在將下一代能量輔助驅動器推向市場方面處於行業領先地位，因為我們確認了本季度 16 和 18 TB 驅動器的收入。客戶對這些產品，特別是我們的 18 TB 驅動器的興趣非常高，並且正在按計劃進行。

Customer acceptance of our enterprise SSDs continue to grow. Our latest 96-layer NVMe-based SSDs have completed more than 20 qualifications with well over 100 qualifications in progress at multiple cloud and OEM customers worldwide.

客戶對我們企業 SSD 的接受度不斷提高。我們最新的 96 層基於 NVMe 的 SSD 已在全球多個雲和 OEM 客戶中完成了 20 多項認證，其中 100 多項認證正在進行中。

Demand for our notebook solutions was greater than expected due to the shift to working from home and e-learning. We experienced record client SSD revenue during the quarter and expect continued growth in the fiscal fourth quarter.

由於轉向在家工作和在線學習，對我們的筆記本電腦解決方案的需求超出了預期。我們在本季度經歷了創紀錄的客戶 SSD 收入，並預計第四財季將繼續增長。

Desktop hard drive revenue was down due to normal seasonality and a shift towards mobile notebook solutions. In addition, smart video hard drive demand was softer than expected as a result of COVID-19.

由於正常的季節性和轉向移動筆記本解決方案，台式機硬盤收入下降。此外，受 COVID-19 影響，智能視頻硬盤需求低於預期。

Mobile flash bit shipments remained modest in the quarter, as we strategically managed our exposure to this part of the market. Retail was particularly affected by COVID-19 in a typically seasonally weaker quarter. As we approached the end of the quarter, we experienced a decline in demand from traditional brick-and-mortar retailers as they started to temporarily close their stores. While many retailers shifted to curbside pickup and began pushing sales through their online channels, we expect physical store closures will create a headwind in our fiscal fourth quarter.

本季度移動閃存位出貨量保持溫和，因為我們戰略性地管理了我們在這部分市場的敞口。在通常季節性較弱的季度，零售業尤其受到 COVID-19 的影響。隨著我們接近本季度末，我們經歷了傳統實體零售商的需求下降，因為他們開始暫時關閉商店。儘管許多零售商轉向路邊取貨並開始通過其在線渠道推動銷售，但我們預計實體店的關閉將在我們的第四財季造成不利影響。

Finally, new game consoles are expected to come to market shortly that are reimagining the next-generation of gaming. These new platforms not only utilize nearly 1 terabit of -- terabyte of internal flash storage, but also empower new cloud-based services for gamers, streamers and content creators that will drive incremental cloud storage demand. We remain on track to ship into this new and growing part of the market in the coming quarter.

最後，預計新遊戲機將很快上市，重新構想下一代遊戲。這些新平台不僅利用了近 1 TB 的內部閃存存儲空間，而且還為遊戲玩家、流媒體和內容創作者提供了新的基於雲的服務，這將推動雲存儲需求的增長。我們仍有望在下一季度進入這一新興且不斷增長的市場。

Turning our outlook for the fourth quarter. Demand remains strong, and we expect growth in revenue and profitability. Of course, the COVID-19 pandemic continues to create a very dynamic environment for us to manage, but our teams are performing well. Bob will go through the details of our Q4 guidance.

改變我們對第四季度的展望。需求依然強勁，我們預計收入和盈利能力將增長。當然，COVID-19 大流行繼續為我們創造一個非常動態的管理環境，但我們的團隊表現良好。 Bob 將詳細介紹我們的第四季度指南。

I am convinced that Western Digital will play an increasingly vital role in the digital transformation underway. The combination of right products, customer engagement and end markets focus provides tremendous opportunities for us.

我相信西部數據將在正在進行的數字化轉型中發揮越來越重要的作用。正確的產品、客戶參與和終端市場關注的結合為我們提供了巨大的機會。

Flash holds the greatest long-term growth opportunity for Western Digital. As I mentioned previously, the migration to flash within gaming consoles is yet another example of flash penetrating deeper into the edge and endpoint. The adoption of 5G and the build-out of the edge to support a new generation of real-time services is another exciting development. We see an expanding TAM for flash that will enable a multiyear growth opportunity.

Flash 擁有西部數據最大的長期增長機會。正如我之前提到的，遷移到遊戲機內的閃存是閃存深入邊緣和端點的又一個例子。採用 5G 和構建邊緣以支持新一代實時服務是另一個令人興奮的發展。我們看到閃存的 TAM 不斷擴大，這將帶來多年的增長機會。

In hard drives, we have already aligned our portfolio to capitalize on long-term growth areas. Our technology and products are indispensable to the growth of the public cloud, the seminal technology trend of our era. We are the first to market with next-generation energy-assisted drives, and we will continue to deliver new innovations to build upon our aerial density leadership.

在硬盤驅動器方面，我們已經調整了我們的產品組合以利用長期增長領域。我們的技術和產品對於公共雲的發展是不可或缺的，這是我們這個時代的開創性技術趨勢。我們是第一個將下一代能量輔助驅動器推向市場的公司，我們將繼續提供新的創新，以鞏固我們在空中密度的領先地位。

I joined Western Digital to be at the center of this incredible opportunity, innovating in one of the critical building blocks of the digital world, storage. Given the breadth and strength of our portfolio and the attractive markets we operate in, we need to best position the company for ongoing success. As a result, we have made the decision to suspend our dividend in order to reinvest in the business and support our deleveraging efforts. Bob will go into more details on our deleveraging objectives.

我加入西部數據是為了成為這個難得機會的中心，在數字世界的關鍵組成部分之一——存儲方面進行創新。鑑於我們投資組合的廣度和實力以及我們經營的有吸引力的市場，我們需要為公司的持續成功做好最佳定位。因此，我們決定暫停派息，以便對業務進行再投資並支持我們的去槓桿化工作。 Bob 將詳細介紹我們的去槓桿化目標。

Before I turn the call over to Bob, I'd like to take a moment to thank the entire Western Digital team, who have come together during this challenging time. It's been incredible to see the support, teamwork and leadership displayed across all levels. Together, I am confident we will get through this and emerge stronger than before.

在我將電話轉給 Bob 之前，我想花一點時間感謝整個 Western Digital 團隊，他們在這個充滿挑戰的時期齊心協力。看到各個級別的支持、團隊合作和領導力表現得令人難以置信。在一起，我相信我們會度過難關，變得比以前更強大。

I will now ask Bob to share our financial highlights.

我現在請鮑勃分享我們的財務亮點。

Thanks, Dave, and welcome to Western Digital. As Dave mentioned, the world has changed in the last few months. I'm impressed by how well the Western Digital team has come together and navigated through this challenging quarter. Results in the fiscal third quarter were generally in line with the guidance provided in January as demand held up well in most of our end markets. We had COVID-19-related impacts, which I will detail in a few minutes.

謝謝，戴夫，歡迎來到西部數據。正如戴夫所說，過去幾個月世界發生了變化。我對西部數據團隊在這個充滿挑戰的季度的團結和駕馭能力印象深刻。由於我們大多數終端市場的需求保持良好，第三財季的業績總體上符合 1 月份提供的指導。我們有與 COVID-19 相關的影響，我將在幾分鐘後詳細說明。

Revenue was $4.2 billion, down 1% sequentially and up 14% from a year ago. By end market, Client Devices revenue of $1.8 billion was up 2% on a sequential basis and increased 13% year-over-year. Record client SSD revenue drove most of the sequential and year-over-year growth. As we look into the fiscal fourth quarter, we anticipate client SSD will experience another strong quarter of revenue growth.

收入為 42 億美元，環比下降 1%，同比增長 14%。按終端市場，客戶端設備收入為 18 億美元，環比增長 2%，同比增長 13%。創紀錄的客戶端 SSD 收入推動了大部分的連續和同比增長。當我們展望第四財季時，我們預計客戶端 SSD 將經歷另一個強勁的季度收入增長。

Notebook and PC-related hard drive revenue declined and now represents under 20% of our total HDD revenue. Smart video was a bit weaker than expected, primarily due to COVID-19.

筆記本電腦和個人電腦相關的硬盤收入下降，現在占我們總硬盤收入的 20% 以下。智能視頻比預期的要弱一些，主要是由於 COVID-19。

And finally, while mobile was up sequentially and year-over-year, we remain under-indexed to this part of the market. Data center devices and solutions revenue of $1.5 billion was up 2% sequentially and up nearly 22% year-over-year. Capacity enterprise hard drive revenue was flat on a sequential basis, while enterprise SSD revenue grew.

最後，雖然移動設備環比和同比增長，但我們對這部分市場的指數仍然不足。數據中心設備和解決方案收入為 15 億美元，環比增長 2%，同比增長近 22%。容量企業級硬盤收入環比持平，而企業級 SSD 收入增長。

Client Solutions revenue was $821 million, down 13% sequentially and up 2% year-over-year. Our retail business was impacted as we approached the end of the quarter due to COVID-19-related lockdown. These lockdowns will have an impact on our fiscal fourth quarter.

客戶解決方案收入為 8.21 億美元，環比下降 13%，同比增長 2%。由於與 COVID-19 相關的封鎖，當我們接近本季度末時，我們的零售業務受到了影響。這些封鎖將對我們的第四財季產生影響。

Demand remains strong in our end markets as we look into the fiscal fourth quarter. Growth in client devices and data center devices and solutions should more than offset the decline in client solutions.

展望第四財季，終端市場的需求依然強勁。客戶端設備和數據中心設備和解決方案的增長應該足以抵消客戶端解決方案的下降。

By product category, flash revenue was $2.1 billion, up 12% sequentially and up 28% year-over-year. Flash ASPs were up 5% sequentially and bit shipments were up 7% sequentially. As we look into the fiscal fourth quarter demand for our flash-based solutions remains strong, and we anticipate that flash prices will rise on a sequential basis.

按產品類別劃分，閃存收入為 21 億美元，環比增長 12%，同比增長 28%。 Flash ASP 環比增長 5%，位出貨量環比增長 7%。展望第四財季，對我們基於閃存的解決方案的需求依然強勁，我們預計閃存價格將連續上漲。

Hard drive revenue was $2.1 billion, down 12% sequentially and up 2% year-over-year. On a sequential basis, the average price per hard drive increased 5% to $85, and exabyte shipments were down 6%.

硬盤收入為 21 億美元，環比下降 12%，同比增長 2%。在連續的基礎上，每塊硬盤的平均價格上漲了 5% 至 85 美元，而艾字節的出貨量下降了 6%。

As we move on to cost and expenses, please note, all of my comments will be related to non-GAAP results unless stated otherwise with COVID-19 impacts detailed where appropriate.

請注意，當我們繼續討論成本和費用時，我的所有評論都將與非 GAAP 結果相關，除非另有說明，並在適當的地方詳細說明了 COVID-19 的影響。

Gross margin for the third quarter was up 2 percentage points sequentially to 27.9%. The start-up costs of our fab in Kitakami, K1, were $62 million and the COVID-19-related costs in the quarter were $13 million. For clarity, both items are included in the reported non-GAAP gross margin. The COVID-19 costs were primarily related to reduced factory utilization and higher logistics and other costs.

第三季度毛利率環比增長 2 個百分點至 27.9%。我們在 K1 北上的工廠的啟動成本為 6200 萬美元，本季度與 COVID-19 相關的成本為 1300 萬美元。為清楚起見，這兩個項目都包含在報告的非公認會計原則毛利率中。 COVID-19 成本主要與工廠利用率降低以及物流和其他成本增加有關。

Our flash gross margin was 26.5%, up 7 percentage points from last quarter due to a stronger pricing environment and cost reductions. In the quarter, we began to ship production units out of K1.

由於更強勁的定價環境和成本降低，我們的閃存毛利率為 26.5%，比上一季度上升 7 個百分點。在本季度，我們開始將生產單元從 K1 運出。

The hard drive gross margin declined to 29.3% from 30.8% in the prior quarter, mostly due to the COVID-19 impact and mix shifts.

硬盤毛利率從上一季度的 30.8% 下降至 29.3%，主要是由於 COVID-19 的影響和混合變化。

Operating expenses were $738 million, slightly lower than expected. Other income and expense was $91 million, higher than expected due to unfavorable foreign exchange rate movements. The tax rate came in at 23.5% in the quarter, which was lower than our prior range of 25% to 27% for the full year.

運營費用為 7.38 億美元，略低於預期。由於不利的匯率變動，其他收入和支出為 9,100 萬美元，高於預期。本季度的稅率為 23.5%，低於我們之前全年 25% 至 27% 的範圍。

We now estimate our fiscal year 2020 tax rate to be between 24% and 25%. Earnings per share was $0.85. Operating cash flow for the third quarter was $142 million, and free cash flow was $176 million. Our free cash flow was better than expected in a quarter that is usually seasonally low. So far, in fiscal 2020, we have generated $847 million in free cash flow and expect to generate very good cash flow in the fourth quarter.

我們現在估計我們 2020 財年的稅率在 24% 到 25% 之間。每股收益為 0.85 美元。第三季度的經營現金流為 1.42 億美元，自由現金流為 1.76 億美元。在通常季節性較低的季度，我們的自由現金流好於預期。到目前為止，在 2020 財年，我們已經產生了 8.47 億美元的自由現金流，預計第四季度將產生非常好的現金流。

Capital expenditures, which include the purchase of property, plant and equipment and activity related to flash ventures on our cash flow statement, were an inflow of $34 million due to the timing of funds flowing back and forth to the joint venture. For the full fiscal year, we expect cash, capital expenditures to be an inflow of a couple hundred million dollars.

由於資金流向合資企業的時間，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企業相關的活動）流入了 3400 萬美元。在整個財政年度，我們預計現金、資本支出將流入數億美元。

Gross capital expenditures, which includes our portion of joint venture leasing and self-operating funding, is expected to be approximately $1.7 billion this fiscal year. We are assessing our fiscal 2021 capital expenditures based on the current economic environment.

本財年總資本支出（包括我們的合資租賃和自營資金部分）預計約為 17 億美元。我們正在根據當前的經濟環境評估我們 2021 財年的資本支出。

Our liquidity position continues to be strong. At the end of the quarter, we had $2.9 billion in cash and cash equivalents, and our gross debt outstanding was $9.8 billion. In the fiscal third quarter, we distributed $149 million in dividends to our shareholders and made an optional $150 million debt paydown. Fiscal year-to-date, we've lowered our debt by about $920 million.

我們的流動性狀況繼續強勁。在本季度末，我們擁有 29 億美元的現金和現金等價物，我們的未償債務總額為 98 億美元。在第三財季，我們向股東派發了 1.49 億美元的股息，並可選擇償還 1.5 億美元的債務。本財年迄今，我們已將債務減少了約 9.2 億美元。

Our first priority for cash utilization is to reinvest in the business. Since we are suspending our dividend, our second priority is repayment of debt. Our current plan is to reevaluate the dividend and other shareholder return policies, and our total debt is under $6 billion and our net debt is under $3 billion. Our goal through a cycle is to have a growth leverage in the range of 1 to 3.5x EBITDA. Our current debt-to-EBITDA leverage was 5.0x in the third quarter.

我們利用現金的首要任務是對業務進行再投資。由於我們暫停派息，我們的第二要務是償還債務。我們目前的計劃是重新評估股息和其他股東回報政策，我們的總債務低於 60 億美元，淨債務低於 30 億美元。我們通過一個週期的目標是實現 1 到 3.5 倍 EBITDA 的增長槓桿。我們目前的第三季度債務與 EBITDA 的槓桿率是 5.0 倍。

I want to make it clear, suspending the dividend is not related to our debt covenants. We have substantial room under our covenants.

我想澄清一下，暫停派息與我們的債務契約無關。在我們的契約之下，我們有很大的空間。

Moving on to non-GAAP guidance for the fiscal fourth quarter. We expect revenue to be in the range of $4.25 billion to $4.45 billion. Gross margin is expected to be between 29% and 31%. This range includes approximately $65 million in costs associated with the K1 fab. We're also anticipating the impact of COVID-19.

轉到第四財季的非公認會計準則指導。我們預計收入將在 42.5 億美元至 44.5 億美元之間。毛利率預計在 29% 至 31% 之間。這個範圍包括與 K1 晶圓廠相關的大約 6500 萬美元的成本。我們還預計 COVID-19 的影響。

Operating expenses are expected to be between $740 million and $760 million. The midpoint of the guidance range assumes normal variable compensation expense. Interest and other expense is expected to be between $75 million and $80 million. The tax rate should be between 24% and 25%. As a result of this detailed guidance, we expect earnings per share between $1 and $1.40, assuming approximately $302 million in fully diluted shares. We're using a wider range this quarter, primarily due to the uncertainty in the environment.

運營費用預計在 7.4 億美元至 7.6 億美元之間。指導範圍的中點假設正常的可變補償費用。利息和其他費用預計在 7500 萬美元至 8000 萬美元之間。稅率應在 24% 至 25% 之間。由於這一詳細指導，我們預計每股收益在 1 美元至 1.40 美元之間，假設完全稀釋的股票約為 3.02 億美元。本季度我們使用的範圍更廣，主要是由於環境的不確定性。

With that, we will now begin the Q&A session. Operator, we're ready for our first question.

有了這個，我們現在將開始問答環節。接線員，我們準備好回答第一個問題了。

(Operator Instructions) Our first question will come from Ryan Rakers with Wells Fargo.

（操作員說明）我們的第一個問題將來自富國銀行的 Ryan Rakers。

It's Aaron Rakers from Wells. Maybe I'll start with just asking about it. I think on Slide 8 in the prior presentation, you guys gave some commentary around the outlook that you have for the flash business as far as industry supply bit growth, as well as your expectation, I think previously noting that you'd expected mid-30% growth on enterprise, high-capacity nearline drive shipments for the full year. And on the second point, can you just -- it looks like you definitely kind of underperformed some of your peers on nearline. Just if you could help us understand what you're seeing in that market relative to the performance we've seen out of your competitors?

是威爾斯的亞倫·雷克斯。也許我會先問一下。我認為在之前的演示文稿中的幻燈片 8 中，你們就閃存業務的前景以及行業供應位增長的前景發表了一些評論，以及您的預期，我認為之前註意到您預計中期-全年企業級、大容量近線驅動出貨量增長 30%。關於第二點，你能不能——看起來你在近線上的表現肯定不如你的一些同行。是否可以幫助我們了解您在該市場上看到的相對於我們從您的競爭對手那裡看到的表現？

So the first question, I missed part of it, but it sounded like that was on aligning a supply and demand of bit growth in the second half of the year. So look, I mean, let me start out with what we're seeing right now. I mean, we saw good demand. We saw, as Bob talked about, margins up this quarter. We're -- next quarter was, as we expected and as we guided, margins up again. Obviously, as we get into the second half of the year, things get a little more difficult to really project. I think we're looking at various different recovery scenarios and how we will invest in those, and we'll be prudent about how we do that.

所以第一個問題，我漏掉了一部分，但聽起來像是在調整下半年比特增長的供需關係。所以看，我的意思是，讓我從我們現在看到的開始。我的意思是，我們看到了良好的需求。正如鮑勃所說，我們看到本季度的利潤率上升。正如我們預期和指導的那樣，下個季度的利潤率再次上升。顯然，隨著我們進入下半年，事情變得更加難以真正預測。我認為我們正在研究各種不同的複蘇情景以及我們將如何投資這些情景，我們將謹慎對待如何做到這一點。

On the nearline side, I mean, look, we're happy with where the product performed. The 14-terabyte is still performing well. 18-terabyte shipped for revenue this quarter, as we talked about. That we made that commitment, we delivered on that. The ramp is on schedule. We see great interest from that. There's no doubt we're in a little bit of a product transition in the industry, and that will play out over the next couple of quarters, but we're happy with where the portfolio is. Bob, do you have anything to add?

在近線方面，我的意思是，看，我們對產品的表現感到滿意。 14 TB 仍然表現良好。正如我們所談到的，本季度的收入為 18 TB。我們做出了這一承諾，我們兌現了這一承諾。坡道按計劃進行。我們從中看到了極大的興趣。毫無疑問，我們正在行業中進行一些產品轉型，這將在接下來的幾個季度中發揮作用，但我們對產品組合的位置感到滿意。鮑勃，你有什麼要補充的嗎？

No, I think that's a good summary. I mean, we're ramping as planned.

不，我認為這是一個很好的總結。我的意思是，我們正在按計劃進行爬坡。

Okay. And then, Bob, just as a quick follow-up, if I can. I know you mentioned that you've got an ample amount of room as far as your covenants. At 5x debt-to-adjusted EBITDA, can you just remind us again what those covenants are? What the thresholds look like? I think it was a little bit lower than that. So just refresh us again on the covenants and when maybe covenants change going forward?

好的。然後，鮑勃，如果可以的話，作為快速跟進。我知道你提到，就你的盟約而言，你有足夠的空間。在 5 倍的債務與調整後 EBITDA 之間，您能否再次提醒我們這些契約是什麼？閾值是什麼樣的？我認為它比那低一點。因此，請再次刷新我們的盟約，何時盟約可能會發生變化？

Yes. So the covenants are related to an adjusted EBITDA number that we use for compliance purposes. And so that the ratio is well below the 5 we show as a non-GAAP debt-to-EBITDA number. And we, as you saw, made progress in the quarter. Our gross leverage went from 5.7 to 5.0 this quarter. So we're definitely trending in the right direction. And as I said, we have plenty of room under the covenant. We just haven't given a lot of specifics on the actual compliance covenant.

是的。因此，這些契約與我們用於合規目的的調整後 EBITDA 數字有關。因此，該比率遠低於我們作為非公認會計準則債務與 EBITDA 數字顯示的 5。如您所見，我們在本季度取得了進展。本季度我們的總槓桿率從 5.7 升至 5.0。所以我們肯定在朝著正確的方向發展。正如我所說，我們在盟約下有足夠的空間。我們只是沒有就實際的合規契約給出很多細節。

Our next question will come from Joe Moore with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的喬摩爾。

If you could talk about the decision around the dividend, and we've highlighted this is something you should consider. But I just curious how much of it is the current environment and the uncertainties around COVID-19 versus just coming in as a new CEO and wanting to get to these leverage targets before you start paying cash out?

如果您可以談論有關股息的決定，我們已經強調這是您應該考慮的事情。但我只是好奇當前環境和 COVID-19 周圍的不確定性與剛以新任 CEO 的身份進入並希望在開始支付現金之前達到這些槓桿目標相比有多少？

Like anything, I think it's a combination of a lot of things. But certainly, the current situation, bring some focus to the desire to deleverage a little faster. But the real issue -- and of course, the real issue is I come into the business, and the company is really well positioned. When I think -- I talked about it in my remarks, when I think about the technology trends that are going on right now, I mean, it's happening in the cloud. Obviously, everybody knows that public cloud is a huge transition. We continue to see incredible growth, and we will. We can talk about that for a long time. We're very well positioned in that market. We perform in the fourth quarter. We'll see the hard drive market of the -- the portfolio has been repositioned for that capacity -- hard drive capacity enterprise market, and we'll see -- actually see that market return to growth after several years of kind of decline and maybe going sideways a little bit.

就像任何事情一樣，我認為這是很多事情的結合。但可以肯定的是，目前的情況讓人們更加關注加快去槓桿化的願望。但真正的問題——當然，真正的問題是我進入這個行業，而公司的定位非常好。當我想——我在我的講話中談到了它，當我想到現在正在發生的技術趨勢時，我的意思是，它正在發生在雲中。顯然，每個人都知道公共雲是一個巨大的轉變。我們將繼續看到令人難以置信的增長，我們會的。我們可以談論很長時間。我們在這個市場上處於非常有利的位置。我們在第四季度執行。我們將看到硬盤市場——該產品組合已針對該容量進行了重新定位——硬盤容量企業市場，我們將看到——實際上看到該市場在經歷了幾年的下滑後恢復增長也許會側身一點。

So we're very well indexed to what I think is one of the biggest technology trends we've seen in a very, very long time. And as that continues, that's going to be good for our portfolio. And then we have the flash portfolio, which if you look at the edge, we have just new markets coming online all the time, where we've talked about gaming, and we see VR headsets, all kinds of things are going to drive demand in that side of the market as well. So we're playing -- the portfolio is very well positioned, and we have lots of opportunities to invest in the growth of the business. And when I think -- when you put that all together, it was the right time to move on to a different model.

因此，我們非常了解我認為是我們在很長一段時間內看到的最大技術趨勢之一。隨著這種情況的繼續，這將有利於我們的投資組合。然後我們有閃存產品組合，如果你看看邊緣，我們總是有新的市場上線，我們談到了遊戲，我們看到了 VR 耳機，各種各樣的東西都將推動需求在市場的那一側也是如此。所以我們在玩——投資組合的定位非常好，我們有很多機會投資於業務的增長。當我認為 - 當你把所有這些放在一起時，現在是轉向不同模型的正確時機。

Great. And then as a follow-up. If you could assess the current environment, we see a fair amount of tightness, particularly on enterprise-grade NAND. How much of that do you think is just tight supply/demand of raw NAND versus tighter supply of PCB controllers, things like that? It seems like it's a combination of both. Do you still think that the underlying NAND market is pretty healthy?

偉大的。然後作為後續行動。如果您可以評估當前的環境，我們會看到相當多的緊張，特別是在企業級 NAND 上。您認為其中有多少只是原始 NAND 的供需緊張與 PCB 控制器的供應緊張，諸如此類？它似乎是兩者的結合。你仍然認為底層的 NAND 市場相當健康嗎？

Yes. We're still very bullish on the enterprise SSD market. And as you know, Joe, we've got goals to get up to 20% market share there. In the short term, you're right, it's a matter of balancing and making sure we've got the right controllers to go with the NAND for that market. And so that's probably the controller side is more of a challenge than the NAND side, but we're very, very optimistic on that business.

是的。我們仍然非常看好企業級 SSD 市場。如你所知，Joe，我們的目標是在那裡獲得高達 20% 的市場份額。在短期內，您是對的，這是一個平衡問題，並確保我們擁有適合該市場的 NAND 控制器。所以這可能是控制器方面比 NAND 方面更具挑戰，但我們對該業務非常非常樂觀。

Our next question will come from Karl Ackerman with Cowen.

我們的下一個問題將來自 Karl Ackerman 和 Cowen。

And welcome to the team, Dave.

歡迎加入團隊，戴夫。

Thanks, Karl.

謝謝，卡爾。

Two questions, if I may. I was hoping you could provide a little bit more clarity on when we should expect the volumes of your 16- and 18-terabyte drives to cross over your 14-terabyte drives? I can appreciate your conservatism given limited use of the second half, but should we actually see the 18-terabyte time line accelerate given robust data center demand?

兩個問題，如果可以的話。我希望您能更清楚地說明我們應該期望您的 16 和 18 TB 驅動器的捲何時跨越您的 14 TB 驅動器？鑑於下半年的使用有限，我可以理解您的保守主義，但鑑於強勁的數據中心需求，我們真的應該看到 18 TB 的時間線加速嗎？

Karl, I think one of the things you're going to see from me is I'm going to really focus on forecasting one quarter at a time. So it's not going to happen next quarter, but you knew that. I think we're looking several quarters out, I guess, is what I'll say at this point. I think -- will it accelerate given the increased cloud demand we're seeing? We're seeing a lot of demand for that product already. I don't think it's going to accelerate one way or another based on if that demand -- I mean, we're basically going to -- we have the demand we need to ramp the product. So we're looking forward to it being a great launch now, and the team is very focused on continuing to make supply available, but we're excited about the product.

卡爾，我想你會從我身上看到的一件事是我將真正專注於一次預測一個季度。所以它不會在下個季度發生，但你知道這一點。我想我們正在尋找幾個季度，我想，這就是我現在要說的。我認為 - 鑑於我們看到的雲需求增加，它會加速嗎？我們已經看到對該產品的大量需求。我不認為它會根據這種需求以一種或另一種方式加速——我的意思是，我們基本上會——我們有增加產品所需的需求。所以我們期待它現在是一個偉大的發布，團隊非常專注於繼續提供供應，但我們對這個產品感到興奮。

And as a follow-up, if I may. Are you capacity constrained on nearline today? And in NAND, while it's probably difficult to ascertain what your customers' inventory levels are, has NAND inventory on your own balance sheet declined on a days basis in March? And any thoughts on how that could trend in the June quarter?

如果可以的話，作為後續行動。您今天的近線容量受限嗎？在 NAND 中，雖然可能很難確定您客戶的庫存水平是多少，但您自己資產負債表上的 NAND 庫存在 3 月份是否逐日下降？以及對六月季度的趨勢有何想法？

Why don't you take the inventory question?

你為什麼不回答庫存問題？

Yes. I can start with the inventory question. So our inventories were up just slightly this quarter. I actually think in the next quarter, you'll see inventories coming down quite a bit because of some of the supply chain challenges. But I'd say everything seems to be an equilibrium in general.

是的。我可以從庫存問題開始。因此，本季度我們的庫存略有增加。實際上，我認為在下一季度，由於一些供應鏈挑戰，您會看到庫存下降很多。但我想說，總的來說，一切似乎都是一種平衡。

Yes. I would say the same thing about the supply. Are we supply constrained? I think the balance is what we expected at this point, right? We continue to see strong demand there.

是的。關於供應，我也會說同樣的話。我們供應受限嗎？我認為平衡是我們目前所期望的，對吧？我們繼續看到那裡的強勁需求。

Our next question will come from Sidney Ho with Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Sidney Ho。

So I have 2 questions. First one is on the gross margin guide being 29% to 31% on a GAAP basis, I know there is a number of moving parts there. I think, you talked about NAND prices going up. Can you just help us build the bridge between where you were in fiscal Q3 where there's a bunch of expenses included? And how that gets to fiscal Q4?

所以我有2個問題。第一個是在 GAAP 基礎上的毛利率指導為 29% 到 31%，我知道那裡有許多活動部件。我想，你談到了 NAND 價格上漲。您能否幫助我們在您在第三財季中包含大量費用的情況之間架起一座橋樑？以及如何進入第四財季？

Yes. So Sidney, this is Bob. I'll take that. So the -- actually, we probably have more absorption variance and cost headwinds in the fourth fiscal quarter than we had in the third. And we are trying to move prices up where we can in the market as a result of those incremental costs. So it's absorption, it's logistics costs, it's other costs and making sure the environments are safe around the world. So it's actually a bigger challenge in the fourth quarter.

是的。西德尼，這是鮑勃。我會接受的。所以 - 實際上，我們在第四財季的吸收差異和成本逆風可能比第三財季更多。由於這些增量成本，我們正試圖在市場上盡可能提高價格。所以它是吸收、物流成本、其他成本以及確保世界各地的環境安全。所以第四季度實際上是一個更大的挑戰。

Okay. Maybe my follow-up question is, you lowered your gross cash CapEx to $1.7 billion from -- I think last quarter, you said $2 billion to $2.5 billion. Just trying to figure out what has changed there in terms of the CapEx plans? I understand for next year, you guys are not ready to give a guidance. But just maybe qualitatively or directionally, how are you thinking about tech migration, wafer capacity additions, those kind of things would be great?

好的。也許我的後續問題是，您將您的總現金資本支出從 - 我認為上個季度降低到 17 億美元，您說的是 20 億美元到 25 億美元。只是想弄清楚資本支出計劃發生了什麼變化？我知道明年，你們還沒有準備好提供指導。但也許只是在質量上或方向上，你如何看待技術遷移、晶圓產能增加，這些事情會很棒？

Yes. So without talking too much about the specific number, as you know, this was always anticipated to be a low growth CapEx year for us. Because if you go back a year ago, we were reducing the amount of capacity we had. We actually took some off-line about a year ago, as you'll recall. And then along with our partner, we had pushed out some of the CapEx expectations. So we'd always expected this to be a light year. And I still expect CapEx will be up next year. I'm not ready at this point to say how much that will be.

是的。因此，如您所知，無需過多談論具體數字，人們一直認為這對我們來說是一個低增長的資本支出年。因為如果你回到一年前，我們正在減少我們擁有的容量。正如您所記得的那樣，我們實際上在一年前就已經下線了。然後與我們的合作夥伴一起，我們推出了一些資本支出預期。所以我們一直預計今年會是光年。而且我仍然預計明年資本支出會增加。在這一點上，我還沒有準備好說會有多少。

Our next question will come from Mehdi Hosseini with SIG.

我們的下一個問題將來自 SIG 的 Mehdi Hosseini。

I want to go back to your hard disk drive. You spoke last few years. It seems like you and your competitor are skipping a node. Your competitor may have gained some market share in 16 terabyte, and now you are aggressively qualifying 18. And this has been a pattern for the past 2 years. How should we think about this looking forward, especially as areal density is going to hit the ceiling? Is there any update on your strategy? And in that context, my follow-up question for David is, this is the first time that you have the mic, if you could please tell us how do you see the company moving forward? And what are the key strategies that you're employing? I understand that you've been on board for probably maybe 1 or 2 months, but both NAND and hard disk drives are very dynamic. Things changes on a monthly, quarterly basis. To the extent that you can share with us your long-term vision and your strategy would be very helpful?

我想回到你的硬盤驅動器。你說的是前幾年。您和您的競爭對手似乎正在跳過一個節點。您的競爭對手可能已經在 16 TB 中獲得了一些市場份額，而現在您正在積極地排位賽 18。這一直是過去 2 年的模式。我們應該如何展望未來，尤其是在面密度即將達到天花板的情況下？你的策略有更新嗎？在這種情況下，我對大衛的後續問題是，這是您第一次擁有麥克風，請告訴我們您如何看待公司的發展？您採用的關鍵策略是什麼？我了解您可能已經加入了 1 或 2 個月，但 NAND 和硬盤驅動器都非常動態。事情每月，每季度都會發生變化。在某種程度上，您可以與我們分享您的長期願景和您的策略會非常有幫助嗎？

Okay. So on the -- thanks, Mehdi. On the first question, you're right, we are in a product transition, and we are excited about the 18-terabyte drive. I'm not yet an expert on hard drive areal density, but I've come up to speed on it relatively quickly. I mean, you're right, it's getting harder and harder to drive more density but we have an enormous amount of R&D in this area. And we're going to invest aggressively to make sure we maintain our lead in areal density. And I think you'll hear more from us coming up about that. There's lots of things going on as there always is and in R&D organizations, and that's been one of the things that has not been surprising to me when I came in, but it's great to see is just the depth of talent that's in the organization to drive the road map in that critical technology. And like I said -- I mean, this is -- when I look at the strategy of the company -- I mean, we will have more to say about this in the future. But when I look at this coming in, I think the company is very well positioned in the fact that it made the pivot to flash. And the way I look at the world is how it evolves as you've got this. We're in like almost -- it's kind of almost cliché to say it about this unprecedented amount of technological change and always seems to be going faster. But I mean, really, over the last number of years, the change that the cloud and the public cloud is driven and the amount of technological change its pushing on every industry and every company is just astounding. There's lots of reasons for that. And many ways is democratizing the access to the most sophisticated technology, everybody can have it now through an API call. And that's just causing just a huge wave of investment and technological change and advancement for every company, every industry for all of us.

好的。所以，謝謝，Mehdi。關於第一個問題，您是對的，我們正處於產品轉型期，我們對 18 TB 驅動器感到興奮。我還不是硬盤面密度方面的專家，但我已經相對較快地掌握了它。我的意思是，你是對的，推動更高密度變得越來越難，但我們在這個領域有大量的研發。我們將積極投資，以確保我們保持在面積密度方面的領先地位。我想你會從我們那裡聽到更多關於這個的消息。研發組織中發生了很多事情，這是我剛進入時並不感到驚訝的事情之一，但很高興看到組織中人才的深度推動該關鍵技術的路線圖。就像我說的 - 我的意思是，這是 - 當我查看公司的戰略時 - 我的意思是，我們將來會對此有更多的話要說。但是當我看到這個進來時，我認為該公司處於非常有利的位置，因為它使支點閃現。我看待這個世界的方式是它在你擁有這個的時候是如何演變的。我們幾乎 - 說這種前所未有的技術變革，而且似乎總是在更快地發展，這幾乎是陳詞濫調。但我的意思是，真的，在過去的幾年裡，雲和公共雲所驅動的變化以及它對每個行業和每個公司所推動的技術變革的數量都令人震驚。這有很多原因。許多方法正在使對最複雜技術的訪問民主化，現在每個人都可以通過 API 調用獲得它。這只會為我們所有人、每家公司、每個行業帶來巨大的投資浪潮、技術變革和進步。

Our portfolio is very well positioned to support. We provide one of the key building blocks or fundamental elements of that digital world, storage. And I think in the cloud and our leadership in areal density, we are very, very highly correlated to that growth vector in the industry. But not just that, it's also -- on the flash side, you've got the edge and endpoints and what's happening there and they're becoming more sophisticated networks, which is something I'm pretty familiar with, giving my history. Networks are getting faster, that's enabling a lot more higher -- much more capable end points to be interconnected, that's driving the flash side of the business. We talked about this in the prepared remarks. Just look at the gaming market, all of a sudden becomes -- opens up to this -- there's a new market that just opens up to us. And there will be more and more of those happening. And then these 2 things reinforce each other. The more innovation there is at the edge, on the endpoints, it drives more data, more data that needs to be stored, more data that needs to be processed, insights need to be derived from it. And that becomes kind of this virtuous cycle that happens. And I think the company is very well positioned on both sides of that.

我們的產品組合非常適合支持。我們提供數字世界的關鍵構建塊或基本元素之一，即存儲。我認為在雲計算和我們在面密度方面的領導地位，我們與行業中的增長向量高度相關。但不僅如此，它還 - 在閃存方面，您擁有邊緣和端點以及那裡正在發生的事情，它們正在變得更加複雜的網絡，這是我非常熟悉的東西，給出了我的歷史。網絡變得越來越快，這使得更高——更強大的端點能夠互連，這推動了業務的閃存方面。我們在準備好的評論中談到了這一點。看看遊戲市場，突然間變成了——向這個開放——有一個新的市場剛剛向我們開放。而且會發生越來越多的事情。然後這兩件事相互加強。邊緣和端點上的創新越多，它就會驅動更多的數據，更多需要存儲的數據，更多需要處理的數據，需要從中獲得洞察力。這變成了這種發生的良性循環。我認為公司在這兩個方面都處於非常有利的位置。

So we'll have more to say on how we zero in on that. You're right, it is a very dynamic market. It's very sensitive to supply and demand changes, but the general trajectory is a good one. We're in a good market. It's always great to be in great TAMs that are growing. As I said, even the hard drive business, which is -- we've now -- I say we, the team here has repositioned the portfolio around capacity enterprise, and you're seeing the growth now come back to that technology base, which is great to see. So look, I'll stop there. We'll have -- I'll have more to say in the future. But as I said, I'm super happy to be here. I think it's -- I think what this company provides is incredibly fundamental and critical for the world that we're all going to, and we use every day. So -- and we'll dial that even more -- dial that in more as we go forward. So thanks for the question. I really appreciate it.

因此，我們將有更多關於我們如何歸零的說法。你是對的，這是一個非常活躍的市場。它對供需變化非常敏感，但總體軌跡是好的。我們的市場很好。加入正在成長的優秀 TAM 總是很棒。正如我所說，即使是硬盤業務——我們現在——我說我們，這裡的團隊已經圍繞容量企業重新定位了投資組合，你現在看到增長回到了技術基礎，很高興看到。所以看，我會停在那裡。我們會有 - 我將來會有更多的話要說。但正如我所說，我很高興來到這裡。我認為這是——我認為這家公司提供的東西對於我們將要進入的世界來說是非常基礎和關鍵的，我們每天都在使用。所以——我們會更多地撥通它——隨著我們前進，撥通更多。所以謝謝你的問題。對此，我真的非常感激。

Our next question will come from C.J. Muse with Evercore.

我們的下一個問題將來自 C.J. Muse 和 Evercore。

I guess first question on gross margins. Can you repeat what the K1 charges are in the June quarter? And how you see that progressing through the rest of the calendar year? And then, can you also share with us what COVID expenses you're assuming? And I'm assuming, again, that's all mostly HDD related. And is that something that we should be thinking about as we model out into the back half of the year?

我想第一個問題是關於毛利率的。您能重複一下六月季度的 K1 費用嗎？您如何看待這一日曆年剩餘時間的進展？然後，您能否也與我們分享您承擔的 COVID 費用？我再次假設，這主要與 HDD 相關。當我們在下半年進行建模時，這是我們應該考慮的事情嗎？

Yes. This is Bob. I'll take a cut at this, C.J. I believe I said the K1 costs were at $62 million in the current quarter and guided to around $65 million next quarter. I think that will be roughly the level through the rest of the calendar year, and then you should start to see it drop off pretty quickly next year as volume starts to ramp more. So I think that's kind of the way we're seeing it right now.

是的。這是鮑勃。 C.J. 我會對此有所削減，我相信我說 K1 的成本在本季度為 6200 萬美元，並在下一季度達到 6500 萬美元左右。我認為這將大致是整個日曆年剩餘時間的水平，然後隨著交易量開始增加，明年你應該會開始看到它很快下降。所以我認為這就是我們現在看到的方式。

In terms of COVID-19, we aren't going to get specific in terms of the cost. As I mentioned, we'll have more absorption variances this quarter. We'll also have more logistics costs this quarter and a number of other costs. We're going to be able to partially offset that with pricing. And our customers will share in some of that, but we're still net-net, going to have some headwind there for COVID-19. But I don't want to get too detailed on that because it's just too hard to tell how it will actually play out.

就 COVID-19 而言，我們不會具體說明成本。正如我所提到的，本季度我們將有更多的吸收差異。本季度我們還將有更多的物流成本和一些其他成本。我們將能夠通過定價部分抵消這一點。我們的客戶將分享其中的一部分，但我們仍然是網絡，對於 COVID-19 會有一些阻力。但我不想在這方面太詳細，因為很難說它實際上會如何發揮作用。

Sure. Very helpful. I guess my follow-up question. How are you thinking about managing your bit inventory on the NAND side in terms of, clearly, some of the lack of visibility, uncertainty associated with COVID-19? And so I guess, would love to hear your thoughts on how you're managing the wafers? And as part of that, what kind of visibility do you have to the second half for cloud spending to be sustainable?

當然。非常有幫助。我想我的後續問題。您如何考慮在與 COVID-19 相關的一些缺乏可見性和不確定性方面管理 NAND 方面的位庫存？所以我想，很想听聽您對如何管理晶圓的想法？作為其中的一部分，您對下半年的雲支出有什麼樣的可見性才能使雲支出可持續發展？

Yes. So C.J., as you know, we're just guiding one quarter out right now. As you can imagine, probably like every company, we have multiple scenarios that we're evaluating. As I said, we think inventory is roughly in equilibrium right now. And we'll just have to take it one quarter at a time as we move forward. So far, demand has held out pretty well for us, and we'll just have to see how that continues through the year. But I don't see major changes right now.

是的。所以 C.J.，如你所知，我們現在只是指導四分之一。您可以想像，可能像每家公司一樣，我們正在評估多種方案。正如我所說，我們認為庫存目前大致處於平衡狀態。在我們前進的過程中，我們只需要一次完成四分之一。到目前為止，對我們的需求一直很好，我們只需要看看這一年會如何持續下去。但我現在看不到重大變化。

Our next question comes from Toshiya Hari with Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

First one, again, on gross margins in the NAND business. Very nice expansion in the March quarter. 90 days ago, you guys talked about gross margins potentially being in the 35% to 40% range in the back half of the year. Again, I appreciate you guys aren't guiding for the full year, but is that still the right appropriate range? Or have things evolved given COVID-19 and its ramifications?

第一個，再次是 NAND 業務的毛利率。三月季度的擴張非常好。 90 天前，你們談到下半年的毛利率可能在 35% 到 40% 之間。再次感謝你們沒有指導全年，但這仍然是正確的合適範圍嗎？或者考慮到 COVID-19 及其後果，事情是否發生了變化？

So you got it right that we're going to stick to one quarter at a time. But I mean, they're going in the right direction. I mean, the fact -- I mean, we -- the forecast for next quarter is the forecast for next quarter. We feel good about where the demand is. As Bob said, I think I mentioned it before as well, we're looking at all different kinds of scenarios for the second half of the year. And as we get more information, we'll make decisions about our investment portfolio to support that. So it's not surprising. I think everybody sees the same thing right now. Visibility is a little bit difficult, but it's -- we'll see how it goes week-by-week as we go through the quarter.

所以你說得對，我們一次只堅持四分之一。但我的意思是，他們正朝著正確的方向前進。我的意思是，事實上——我的意思是，我們——對下個季度的預測就是對下個季度的預測。我們對需求在哪裡感到滿意。正如鮑勃所說，我想我之前也提到過，我們正在研究下半年的各種不同情況。隨著我們獲得更多信息，我們將就我們的投資組合做出決策以支持這一點。所以這並不奇怪。我想每個人現在看到的都是一樣的。可見性有點困難，但它是 - 我們將在整個季度中看到它是如何逐週進行的。

Understood. And then as a quick follow-up, kind of a follow-up question to Mehdi's question earlier. David, I appreciate you've only been around for a month plus here. But I was hoping you could share maybe 1 or 2 things that you'd like to change or improve upon at the company? In response to Mehdi's question, I think you talked about being comfortable with the portfolio and having the confidence in sort of the growth profile of the company. But how about from an operational standpoint? Any 1 or 2 things that you hope to change or improve upon, I guess, as an add-on to that? If you had to pick 1 or 2 kind of financial metrics that you tend to focus on and prioritize, if you can kind of speak to those, that would be helpful, whether it'd be revenue or margins, EPS, cash flow?

明白了。然後作為一個快速跟進，有點像之前 Mehdi 的問題的後續問題。大衛，我很感激你在這裡只待了一個月多。但我希望你能分享一兩件你想在公司改變或改進的事情？在回答 Mehdi 的問題時，我認為您談到了對投資組合感到滿意並對公司的增長狀況充滿信心。但是從操作的角度來看呢？我想，您希望更改或改進的任何 1 或 2 件事作為附加項？如果您必須選擇 1 或 2 種您傾向於關注和優先考慮的財務指標，如果您可以與這些指標進行交流，那將是有幫助的，無論是收入還是利潤率、每股收益、現金流？

Yes, Toshi -- I mean I think it's -- I appreciate the question. I guess I'll say in general, it's a difficult quarter to draw lots of long-term conclusions about much of anything right now. The -- I will say, the operations team has just done an incredible job. I mean, I've watched this play out now over the last 7 weeks or so that I've been here. And we have a global footprint with factories and fabs all over the world, China, Japan, the Philippines, Malaysia, Thailand, here in the U.S. And to see how all the best practices have been shared, and all of those have been kept open and functioning at some level and then increasing capabilities, working with our suppliers, I think that's a tremendous strength of the company. Again, I have more to say about that later. But again, I think this -- the past 7 weeks is not a time where you want to look at anything and draw a really long-term conclusion given the dynamic situation we're in.

是的，Toshi——我的意思是我認為是——我很欣賞這個問題。我想我會說一般來說，現在很難就任何事情得出很多長期結論。 - 我會說，運營團隊剛剛完成了一項令人難以置信的工作。我的意思是，在過去 7 週左右的時間裡，我一直在觀看這場比賽，所以我一直在這裡。我們的工廠和晶圓廠遍布全球，包括中國、日本、菲律賓、馬來西亞、泰國和美國。看看如何分享所有最佳實踐，所有這些都保持開放並在一定程度上發揮作用，然後提高能力，與我們的供應商合作，我認為這是公司的巨大優勢。再說一次，我稍後有更多話要說。但是，我再次認為，鑑於我們所處的動態情況，過去 7 週不是您想要查看任何內容並得出真正長期結論的時間。

As far as financial metrics, there's lots of good ones. Clearly, gross margin is something we're going to be very focused on, making sure we're investing our resources in the places that can draw the highest return. That is obviously a very big focus and cash generation, quite honestly, and make sure we're managing for that. So those are 2 that are at the top of a whole long list.

就財務指標而言，有很多好的指標。顯然，毛利率是我們將非常關注的事情，確保我們將資源投資在能夠獲得最高回報的地方。老實說，這顯然是一個非常大的重點和現金產生，並確保我們正在為此進行管理。所以那些是整個長列表中的頂部的 2 個。

Our next question comes from Jim Suva with Citigroup.

我們的下一個問題來自花旗集團的 Jim Suva。

This is Mike Cadiz for Jim Suva at Citi. Gentlemen, would you mind giving us a little more color, please, on the current factory utilization levels? And secondly, an overview on the health of your component supply chain at this time? I appreciate it.

這是花旗的 Jim Suva 的 Mike Cadiz。先生們，您介意給我們提供更多關於當前工廠利用率水平的信息嗎？其次，您目前對您的組件供應鏈的健康狀況進行概述？我很感激。

Yes. I think that it's been improving week over week. And as it stands right now, we're in good shape. Obviously, it's an incredibly dynamic situation. I'll say that right from the start. I mean, every day, it changes. And every day, of course, you get new information and make the best decision about how you're going to move forward, but the team has done a great job of that, kept things open the whole time. Literally, over the past 2 or 3 weeks, things have gotten significantly stronger, and it puts us in a position right now where I think we're -- I don't want to use the term normal because I don't think anything is normal in the world right now, but we're operating at a level that -- I mean, obviously, we're operating at a level that can support the forecast that we just put forward. So I feel really good about what the team has done and the position they've put us in around the world. And we're staying super vigilant to make sure, one, that we implement best practices across all of our facilities.

是的。我認為它每週都在改善。就目前而言，我們處於良好狀態。顯然，這是一個令人難以置信的動態情況。我會從一開始就這麼說。我的意思是，每天都在變化。當然，每天你都會獲得新信息，並就如何前進做出最佳決定，但團隊在這方面做得很好，始終保持開放。從字面上看，在過去的 2 或 3 週內，情況明顯變得更加強大，這使我們現在處於我認為我們所處的位置——我不想使用“正常”這個詞，因為我什麼都不想目前在世界上是正常的，但我們的運營水平 - 我的意思是，顯然，我們的運營水平可以支持我們剛剛提出的預測。所以我對團隊所做的事情以及他們在世界各地為我們安排的位置感到非常滿意。我們將保持高度警惕，以確保我們在所有設施中實施最佳實踐。

We are working from home at a significant level everywhere we can, and that's making the situation better. But the people that have to come in to keep the businesses running. And as you know, we are an essential business. And everywhere we operate, that hasn't been an issue about getting any kind of authorization to operate, but making sure that the people that are in, the facilities are safe, and we've had good success there as well.

我們在盡可能多的地方都在家工作，這讓情況變得更好。但是必須進來以保持企業運轉的人。如您所知，我們是一項必不可少的業務。在我們經營的任何地方，獲得任何形式的經營授權都不是問題，但要確保裡面的人、設施是安全的，而且我們在那裡也取得了很好的成功。

Our supply chain, we've been working with our supply chain. We've been helping out our supply chain to make sure they get the appropriate government release to continue to operate. We've been doing some diversification of that to fill some gaps and some non-regrets moves on that. But right now, the supply chain, again, it's the same thing as our own facilities. It's -- week by week, it's gotten better to a point where right now we feel like we're in a relatively strong position.

我們的供應鏈，我們一直在與我們的供應鏈合作。我們一直在幫助我們的供應鏈，以確保他們獲得適當的政府批准以繼續運營。我們一直在做一些多樣化的工作，以填補一些空白，並對此採取一些不後悔的舉措。但是現在，供應鏈再次與我們自己的設施相同。這是 - 一周一周，它變得更好到現在我們覺得我們處於相對強勢的位置。

Yes. I mean, where all vendors producing at this point, and that could change when everybody's producing it.

是的。我的意思是，此時所有供應商都在哪裡生產，當每個人都生產它時，情況可能會改變。

Our next question comes from Mitch Steves with RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Mitch Steves。

I had 2 couple of small ones, I guess. So the first one just regard to the dividend and kind of cancellation there. So what type of leverage metric are you guys trying to get to? Or is there any sort of way to think about when it will be reinstated in terms of a financial metric? And then secondly, just given the supply chain disruptions of what we're seeing in economic wide disruptions, what's the new view in terms of what you guys believe smartphone units will look like out, call it, 12 to 24 months, whatever time frame you want to use?

我猜我有兩個小的。所以第一個只是關於股息和那裡的取消。那麼你們想要達到什麼類型的槓桿指標呢？或者有什麼方法可以考慮何時恢復財務指標？其次，考慮到我們在經濟範圍內看到的供應鏈中斷，你們認為智能手機產品的新觀點是什麼，稱之為，12 到 24 個月，無論時間框架如何你想用嗎？

All right. Mitch, it's Bob. I'll start. One of the things we've done is we've studied the capital structure quite a bit. And what we've concluded is, obviously, it's a cyclical business. We want to have a growth leverage that works for us through the cycle. We're expecting, as we bring our debt levels down, that we'll manage to anywhere from 1 to 3.5x EBITDA depending on where we are in the cycle. And as I mentioned, the goal is to get our gross debt down to about $6 billion and our net debt to $3 billion. And yes, I don't know if you want to take.

好的。米奇，是鮑勃。我會開始的。我們所做的其中一件事是我們對資本結構進行了相當多的研究。我們得出的結論是，顯然，這是一項週期性業務。我們希望有一個在整個週期中對我們有用的增長槓桿。我們預計，隨著我們降低債務水平，我們將設法將 EBITDA 提高到 1 到 3.5 倍，具體取決於我們在周期中的位置。正如我所提到的，我們的目標是將我們的總債務降至約 60 億美元，將我們的淨債務降至 30 億美元。是的，我不知道你是否願意接受。

Mitch, thanks for the question. I don't think we forecast smartphone units. I mean, again, the second half and what's going to happen. We're going to take it quarter-by-quarter at this point. We -- obviously, we feel good about our guide for the next quarter and what we see on the supply and demand side to have a lot of confidence in that. And we'll have more to say about the second half next quarter.

米奇，謝謝你的提問。我認為我們不會預測智能手機的銷量。我的意思是，下半場以及接下來會發生什麼。在這一點上，我們將按季度進行。我們 - 顯然，我們對下一季度的指南以及我們在供需方面看到的情況感到滿意，對此充滿信心。我們將在下個季度對下半年有更多話要說。

Yes. The thing I would add, as you recall, Mitch, I mean, we're under-indexed to the mobile phone market. So we're not trying to forecast it, and we're not as exposed to it as some of our customers -- I'm sorry, some of our competitors.

是的。我要補充一點，你還記得，米奇，我的意思是，我們對手機市場的索引不足。所以我們沒有試圖預測它，我們也沒有像我們的一些客戶那樣接觸它——對不起，我們的一些競爭對手。

Our next question comes from Steven Fox with Fox Advisors.

我們的下一個問題來自 Fox Advisors 的 Steven Fox。

I just had a question on the retail channel. You mentioned there's -- obviously, there's a pretty big disruption in the channel right now. Can you talk about, one, how it impacted the guidance for the current quarter? And then secondly, when we think about sort of those brands, which are pretty strong in retail league, Western Digital and the old SanDisk products, you're sort of focus on those longer-term given that you could probably redeploy those bits and heads and media into more profitable areas?

我剛剛對零售渠道有疑問。你提到有 - 顯然，現在渠道存在相當大的中斷。你能談談它如何影響本季度的指導嗎？其次，當我們考慮那些在零售聯盟、西部數據和舊閃迪產品中相當強大的品牌時，你會關注那些長期的產品，因為你可能會重新部署這些零碎的產品和媒體進入更有利可圖的領域？

So I think as we talked about for the fourth quarter, we expect some headwinds in that business. I think it's typically a seasonally weak quarter anyway. And obviously, with stores not being open, it makes it a lot tougher. Last quarter, as we talked about towards the end of the quarter, we obviously saw a deterioration as stores were closed. And we also saw the mix shift to lower-margin products as well. We've got that all factored into the guide. I mean -- again, we're very comfortable with the guide. The guide is a guide. And so we've got all the dynamics that we expect to happen in the retail channel baked into those numbers. Longer term, again, we'll have more to say about longer-term strategy. But I think it's a great strength of the company, those brands. I think it's an area where we can drive differentiation and we can drive margin in those channels as well. They're not just -- it's not just all low-margin business. So I feel good about that capability. And honestly, it's one of the things that attracted me to the company. So we'll -- again, we'll have more to say about what the long-term strategy is there, but I think it's definitely an asset.

所以我認為，正如我們談到第四季度時，我們預計該業務會遇到一些不利因素。我認為無論如何，這通常是一個季節性疲軟的季度。顯然，由於商店不營業，這讓事情變得更加艱難。上個季度，正如我們在本季度末談到的那樣，隨著商店關閉，我們顯然看到了惡化。我們還看到混合產品也轉向利潤率較低的產品。我們已將所有這些因素都納入指南。我的意思是——再一次，我們對指南非常滿意。嚮導是嚮導。因此，我們已經將我們期望在零售渠道中發生的所有動態都融入到這些數字中。從長遠來看，我們將再次談論長期戰略。但我認為這是公司的強大力量，這些品牌。我認為這是一個我們可以推動差異化的領域，我們也可以在這些渠道中提高利潤率。他們不僅僅是——不僅僅是低利潤的業務。所以我對這種能力感覺很好。老實說，這是公司吸引我的原因之一。因此，我們將 - 再次，我們將對那裡的長期戰略有更多話要說，但我認為這絕對是一項資產。

Our next question will come from Srini Pajjuri with SMBC Nikko Securities.

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

Dave, I guess, I'm trying to understand the current demand is sustainable, I guess, into the second half. I guess we are all trying to do that at this point. But what I'm trying to get at is that you guys tend to have pretty good visibility on the hyperscale cloud side given your design cycles. I just want to hear your thoughts as to what your customers are saying about the second half? And what sort of design activity on the drive side you're seeing? Any thoughts would be helpful?

戴夫，我想，我想了解當前的需求是可持續的，我想，到下半年。我想我們都在努力做到這一點。但我想要了解的是，鑑於你們的設計週期，你們往往在超大規模雲方面有很好的可見性。我只是想听聽您對您的客戶對下半年的看法？您在驅動方面看到了什麼樣的設計活動？有什麼想法會有所幫助嗎？

Yes. Again, I always couch everything we're going to guide one quarter at a time, but it's a fair question. I mean, we -- I guess the only thing we can say is we continue to see strong demand from the big cloud vendors, cloud suppliers. There's always a question, are they building inventory, are they buying ahead, the old consumption digestion kind of thing. Everything we see is there's strong demand for what their products are. I think they're saying the same thing. Not saying anything new there.

是的。再說一次，我總是把我們要指導的一切都安排在一個季度，但這是一個公平的問題。我的意思是，我們——我想我們唯一能說的是我們繼續看到來自大型雲供應商、雲供應商的強勁需求。總是有一個問題，他們是否在建立庫存，他們是否提前購買，舊的消費消化之類的東西。我們看到的一切都是對他們產品的強烈需求。我認為他們在說同樣的話。沒有說什麼新鮮的。

How long it lasts? I mean -- what I talked about in the intro of -- in my prepared remarks, I mean, I think this world that we're all living in because of COVID-19, where there's just a lot more work at home, learn at home, there's just a lot more dependence on cloud and endpoint technology, I think that architecture has been set for some time now, and it's impacting every business. We've seen a massive acceleration to that, unfortunately, because of a global pandemic. The question is how much -- is that going to continue to stay as it starts to subside? I don't -- obviously, there'll be some variability in that given that there's so many people at home now. But like I said, I think the model is set, and I think it's how fast we're going to get there. I don't think there's a question on is it the right destination? So we'll see as we move into the second half.

持續多久？我的意思是——我在簡介中談到的——在我準備好的評論中，我的意思是，我認為這個我們都生活在這個世界上是因為 COVID-19，家裡有更多的工作，學習在國內，對雲和端點技術的依賴要多得多，我認為架構已經設置了一段時間，它正在影響每一個企業。不幸的是，由於全球大流行，我們已經看到了巨大的加速。問題是多少——隨著它開始消退，這種情況會繼續存在嗎？我不 - 顯然，鑑於現在家裡有這麼多人，這會有一些變化。但就像我說的，我認為模型已經確定，而且我認為這是我們到達那裡的速度。我不認為有一個問題是它是正確的目的地嗎？所以我們會看到我們進入下半場。

Our conversations with all those customers continue to be fantastic, you're right. One of the things that's been great as I've come into this company, is just to understand the depth of our relationship and the strength of our footprint and those customers is extremely impressive. And so we're going to stay very close to them and continue to work with them as they build out their infrastructure. But right now, I don't think -- we don't have any sign that -- well, I think what we're seeing is the increased demand and nothing tells us that it's nothing but real demand. And how far it extends into the second half, we'll see as we get more visibility.

我們與所有這些客戶的對話仍然很棒，你是對的。當我進入這家公司時，其中一件很棒的事情就是了解我們關係的深度和我們足蹟的實力，這些客戶非常令人印象深刻。因此，我們將與他們保持密切聯繫，並在他們建設基礎設施時繼續與他們合作。但現在，我不認為——我們沒有任何跡象表明——嗯，我認為我們看到的是需求增加，沒有什麼告訴我們這只是真正的需求。以及它延伸到下半場的程度，我們會看到隨著我們獲得更多的知名度。

Helpful. And then, Bob, I guess, as you try to improve the free cash flow going forward, a couple of line items, I want to hear your thoughts on. First, on the OpEx. And then the other thing I noticed is that you've been paying a fairly high tax rate, relatively speaking, at least on a non-GAAP basis compared to your semi peers. I'm just curious as to why that is? And when do you expect that to come down?

有幫助。然後，鮑勃，我想，當你試圖改善未來的自由現金流時，我想听聽你的想法。首先，關於運營支出。然後我注意到的另一件事是，與您的半同行相比，相對而言，至少在非公認會計原則的基礎上，您一直在支付相當高的稅率。我只是好奇為什麼會這樣？你預計什麼時候會下降？

Yes. So 2 good questions. OpEx, I think the best assumption is it will be around the levels we guided to this quarter for the next few quarters anyway.

是的。所以 2 個好問題。運營支出，我認為最好的假設是，無論如何，在接下來的幾個季度中，它將在我們本季度指導的水平附近。

The -- on the tax rate, the dilemma is we have a fantastic structure when we're making more money than we are right now. And so right now, when our profitability levels are relatively low, we have certain minimum taxes we have to pay around the world and it makes our tax rate quite high. So it will come down as the overall profitability starts to come up.

- 關於稅率，困境是當我們賺的錢比現在多時，我們有一個很棒的結構。所以現在，當我們的盈利水平相對較低時，我們必須在全球範圍內繳納一定的最低稅款，這使得我們的稅率相當高。因此，隨著整體盈利能力開始上升，它會下降。

(Operator Instructions) Our next question comes from Harlan Sur with JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 Harlan Sur。

It looks like the team saw continued strong growth in the ramp of your new enterprise SSD platforms. I know you guys are targeting 20% market share. But based on your shipments in the March quarter and assumption on industry shipments, did you guys actually achieve double-digit percentage market share in the March quarter?

看起來團隊看到了您的新企業 SSD 平台的持續強勁增長。我知道你們的目標是 20% 的市場份額。但是根據你們在 3 月季度的出貨量和對行業出貨量的假設，你們真的在 3 月季度實現了兩位數的市場份額嗎？

Yes. I'd say the share was fairly flat. That market is growing quite a bit. So we're -- as I mentioned earlier, we're a bit constrained on controllers right now, but the demand is definitely there.

是的。我會說份額相當平坦。這個市場正在增長相當多。所以我們 - 正如我之前提到的，我們現在對控制器有點限制，但需求肯定存在。

Okay. Great. And then on the COVID-19 operational issues, team, maybe just give us a bit more color on where these are coming from? I know that you guys -- there are shelter-in-place and movement control in the Bay Area, Philippines, Thailand, Malaysia, all of the areas where you guys have a footprint of operations. Any geographies, which are creating more of a pressure point from an operational or a logistics perspective?

好的。偉大的。然後在 COVID-19 運營問題上，團隊，也許只是給我們更多關於這些來自哪裡的顏色？我知道你們——在灣區、菲律賓、泰國、馬來西亞，你們有業務足蹟的所有地區都有就地避難所和行動控制。從運營或物流的角度來看，有哪些地區會產生更多的壓力點？

I don't really want to call out any one area over another because it -- one, it changes quite a bit based on local situations. But obviously, if -- there's a couple of different categories things fall in to. First is logistics. It's gotten more expensive to get to move stuff around. A lot of stuff went on domestic flight. So there's a lot -- or passenger flights. There's a lot fewer of those. So those costs are going up. Just the general number of places that are open and how difficult it is to move things around is a big category of cost. And then in places where we maybe do have a little bit of under -- we can't run at full capacity, although that's getting to be less and less of an issue over the last couple of weeks there's some absorption costs that Bob talked about. And then there's some just general costs of just increased cleaning and those kinds of things. But those are relatively minor based on the other 2. I don't know, Bob, anything else come to mind?

我真的不想強調任何一個區域而不是另一個區域，因為它 - 一個，它會根據當地情況發生很大變化。但顯然，如果 - 有幾個不同的類別。首先是物流。搬東西的成本越來越高。很多東西都在國內航班上。所以有很多——或客運航班。那些少了很多。所以這些成本正在上升。只是開放的地方的一般數量以及移動物品的難度是一大類成本。然後在我們可能確實有一點不足的地方——我們不能滿負荷運行，儘管在過去的幾周里這個問題越來越少，鮑勃談到了一些吸收成本.然後還有一些只是增加清潔和那些東西的一般成本。但這些相對於其他 2 來說是相對較小的。我不知道，鮑勃，還有什麼想到的嗎？

No, I think that's right. I mean, I think certainly, May will be better than April, and I think June will be even a little better than May.

不，我認為這是對的。我的意思是，我認為肯定會，五月會比四月好，我認為六月甚至會比五月好一點。

Yes. It really has been a week over week. It's gotten much better.

是的。這真的是一周又一周。它變得好多了。

Our next question will come from Tristan Gerra with Baird.

我們的下一個問題將來自 Tristan Gerra 和 Baird。

We've been reading recently about HDD pricing going up to match higher logistical costs. What's your sense of pricing in HDD going forward? And will the supply disruption create potentially an environment where pricing could be favorable for the next few quarters?

我們最近一直在閱讀有關 HDD 價格上漲以匹配更高的物流成本的消息。您對 HDD 未來的定價有何看法？供應中斷是否會潛在地創造一個定價可能對未來幾個季度有利的環境？

Oh, I don't know about for the next few quarters. But we have been somewhat successful in moving pricing to cover some of the increased costs. I think that's what our focus is on anything around pricing in the industry. But we're not looking at it. We're looking at it in the sense of what it takes to cover the increased costs that we have in the business. And we have a good idea what those are going to be for next quarter. And when we get there, we'll figure out what's going to happen in that. Bob, anything to add to that?

哦，我不知道接下來的幾個季度。但我們在移動定價以彌補部分增加的成本方面取得了一定的成功。我認為這就是我們關注行業定價的任何事情。但我們不看它。我們正在考慮如何彌補我們在業務中增加的成本。我們很清楚下個季度的情況。當我們到達那裡時，我們會弄清楚那裡會發生什麼。鮑勃，有什麼要補充的嗎？

No, I agree.

不，我同意。

Okay. Great. And then just a quick follow-up. You've talked a lot about supply chain disruptions, but -- and how this has improved recently. But is there a quantification that you could put into maybe a percentage of output that's currently for this current quarter going to be impacted by those disruptions? I know that you've talked about your expectation for inventory levels to come down. Just trying to put things together in terms of whether there is still a meaningful impact -- material impact on the supply coming from those disruptions this quarter?

好的。偉大的。然後只是快速跟進。您已經談了很多關於供應鏈中斷的問題，但是——以及最近這種情況如何得到改善。但是，您是否可以量化當前季度當前的產出百分比將受到這些中斷的影響？我知道您已經談到了您對庫存水平下降的預期。只是想把事情放在一起，看看是否仍然存在有意義的影響——本季度這些中斷對供應的實質性影響？

Yes. I don't want to put a specific number on it because the potential -- it's a very -- as I said -- said several times, a very dynamic environment. I would say that we have confidence in the supply -- what the supply that's going to be produced to support the guide for the next quarter. We have a lot of confidence in that. But it could -- things change every day. But I said the trend has been going -- it's been getting better and better to where it's given us the confidence to put the guide in place that we have.

是的。我不想在上面加上一個具體的數字，因為潛力——正如我所說的——多次提到，一個非常動態的環境。我想說我們對供應充滿信心——將生產多少供應來支持下一季度的指南。我們對此充滿信心。但它可以——事情每天都在變化。但我說趨勢一直在發展——它越來越好，讓我們有信心將指南落實到位。

The last question comes from Weston Twigg with KeyBanc Capital before we end with a short statement by our CEO.

最後一個問題來自 KeyBanc Capital 的 Weston Twigg，然後我們以首席執行官的簡短聲明結束。

I had a couple of quick ones. First, I was just wondering if you had a chance to look at the recent commerce rule change regarding company military exposure in China, Russia and Venezuela. I think specifically in China, you had previously said you have 20% to 25% exposure. And I'm wondering if you had a chance to think about how much of that might fall under the new definition under this rule?

我有幾個快速的。首先，我只是想知道您是否有機會查看最近有關公司在中國、俄羅斯和委內瑞拉的軍事曝光的商業規則變化。我想特別是在中國，你之前說過你有 20% 到 25% 的曝光率。我想知道您是否有機會考慮其中有多少可能屬於該規則下的新定義？

We've had a chance to take a quick look at it. And we don't believe it will have a material impact on our business. But obviously, we're going to monitor it very, very closely.

我們有機會快速瀏覽一下。而且我們認為這不會對我們的業務產生重大影響。但顯然，我們將非常非常密切地監控它。

That makes sense. That's helpful. And then the other question I had was just on notebooks. It's been a big driver of near-term revenue. Can you talk about the density trends in notebooks in the back half of the year if that might be -- I don't know if it's stable or going up or not, but if that might be an offset if units are down?

那講得通。這很有幫助。然後我的另一個問題只是在筆記本上。這是近期收入的一大推動力。如果可能的話，您能否談談今年下半年筆記本電腦的密度趨勢——我不知道它是否穩定或上升，但如果單位下降，這是否可以抵消？

Yes. Again, we're going to stick to talking about things for next quarter. I don't have anything in particularly insightful to say about density trends and notebooks at this point. Bob, I don't know if you do.

是的。同樣，我們將堅持討論下個季度的事情。在這一點上，我對密度趨勢和筆記本沒有什麼特別有見地的說法。鮑勃，我不知道你有沒有。

Yes. No, I don't. I mean, obviously, it's come up over the last year, but I think as we go forward, we don't really know.

是的。不，我沒有。我的意思是，很明顯，它是在去年出現的，但我認為隨著我們前進，我們真的不知道。

We can follow-up with you with some more details.

我們可以跟進您並提供更多詳細信息。

All right. Thank all of you for joining us here today. We look forward to seeing you virtually at the upcoming JPMorgan and Bank of America conferences. Enjoy the rest of your day. Thank you.

好的。感謝大家今天加入我們。我們期待在即將舉行的摩根大通和美國銀行會議上與您見面。享受你一天的剩餘時間。謝謝你。

Yes. Thanks, everyone.

是的。感謝大家。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連接。