威騰電子 (WDC) 2016 Q4 法說會逐字稿

Good afternoon and thank you for standing by. Welcome to Western Digital's fourth-quarter and FY16 conference call. Presently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

下午好，謝謝你的支持。歡迎來到西部數據第四季度和 2016 財年的電話會議。目前，所有參與者都處於只聽模式。稍後，我們將進行問答環節。

(Operator Instructions)

（操作員說明）

Now, I will turn the call over to Mr. Bob Blair. You may begin.

現在，我將把電話轉給鮑勃·布萊爾先生。你可以開始了。

Thank you, and good afternoon, everyone. This Conference Call will contain forward-looking statements within the meaning of the Federal Securities laws including statements concerning our expected financial performance for our first fiscal quarter ending September 30, 2016, our market positioning, expectations regarding our transformation, growth opportunities, near-term priorities, long-term business model, and strategy execution. Integration activities and achievement of synergy goals, demand and market trends, our product portfolio, Product Development efforts, and customer acceptance of our products, data growth and its drivers and our wafer capacity.

謝謝，大家下午好。本次電話會議將包含聯邦證券法含義內的前瞻性陳述，包括關於我們截至 2016 年 9 月 30 日的第一財季的預期財務業績、我們的市場定位、對我們轉型的預期、增長機會、近期優先事項、長期業務模型和戰略執行。整合活動和協同目標的實現、需求和市場趨勢、我們的產品組合、產品開發工作、客戶對我們產品的接受度、數據增長及其驅動因素和我們的晶圓產能。

These forward-looking statements are based on Management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including those listed in our Quarterly Report on Form 10-Q with the SEC on May 9, 2016. We undertake no obligation to update our forward-looking statements to reflect new information or events.

這些前瞻性陳述基於管理層當前的預期，並受到可能導致實際結果出現重大差異的風險和不確定性的影響，包括我們於 2016 年 5 月 9 日向美國證券交易委員會提交的 10-Q 表季度報告中列出的那些。我們承諾沒有義務更新我們的前瞻性陳述以反映新的信息或事件。

Further references will be made during this call to non-GAAP financial measures. Reconciliations of the differences between the historical non-GAAP measures we provide during this call to the comparable historical GAAP financial measures are included in the quarterly fact sheet posted in the Investor Relations section of our website. We have not reconciled our non-GAAP financial measures guidance for the most directly comparable GAAP measures because material items that impact these measures are out of our control and/or cannot be reasonably predicted. Accordingly a reconciliation of the non-GAAP financial measure guidance for the corresponding GAAP measures is not available without unreasonable effort.

在本次電話會議期間將進一步提及非 GAAP 財務措施。我們在本次電話會議期間提供的歷史非 GAAP 指標與可比的歷史 GAAP 財務指標之間差異的調節包含在我們網站投資者關係部分發布的季度情況說明書中。我們沒有將我們的非 GAAP 財務指標指南與最直接可比的 GAAP 指標進行協調，因為影響這些指標的重大項目超出了我們的控制和/或無法合理預測。因此，如果不付出不合理的努力，就無法獲得相應 GAAP 措施的非 GAAP 財務措施指南的對賬。

I also want to call to your attention the quarterly fact sheet posted on our Investor Relations section of our website has been updated to reflect enhancements to our reporting, including the break out of revenues and exabytes shipped to three end markets, data center devices and solutions, client devices and client solutions. The definitions of these three end market categories can be found in the quarterly fact sheet. In the question-and-answer part of today's call, we ask that you limit yourselves to one question to allow as many callers as possible to ask their questions. Thank you in advance for your cooperation. And, with that, I will turn the call over to our CEO, Steve Milligan.

我還想提請您注意，我們網站投資者關係部分發布的季度情況說明書已經更新，以反映我們報告的改進，包括收入和運往三個終端市場、數據中心設備和解決方案的艾字節的突破、客戶端設備和客戶端解決方案。這三個終端市場類別的定義可以在季度情況說明書中找到。在今天電話的問答部分，我們要求您將自己限制在一個問題上，以便讓盡可能多的來電者提出問題。預先感謝您的合作。而且，有了這個，我將把電話轉給我們的首席執行官史蒂夫米利根。

Good afternoon, and thank you for joining us. With me are Mike Cordano, President and Chief Operating Officer, Olivier Leonetti, Chief Financial Officer, and Mark Long, Executive Vice President, Finance and Chief Strategy Officer. After my opening remarks, Mike will provide a summary of recent business highlights. Olivier will cover the fiscal fourth-quarter financials, and Mark will wrap up with our guidance for the first fiscal quarter.

下午好，感謝您加入我們。與我同行的還有總裁兼首席運營官 Mike Cordano、首席財務官 Olivier Leonetti 和財務執行副總裁兼首席戰略官 Mark Long。在我的開場白之後，Mike 將總結近期的業務亮點。奧利維爾 (Olivier) 將介紹第四財季的財務狀況，馬克 (Mark) 將總結我們對第一財季的指導。

Earlier this afternoon, we reported revenue and non-GAAP EPS for our fiscal fourth quarter that were better than the preliminary results announced earlier this month. We are reporting revenue of $3.5 billion, non-GAAP gross margin of 31%, and non-GAAP earnings per share of $0.79. FY16 was a transformative year for our Company. We took significant steps to continue our evolution into the leading storage solutions Company and to return to growth with global scale and extensive product and technology assets.

今天下午早些時候，我們公佈了第四財季的收入和非 GAAP 每股收益，優於本月早些時候公佈的初步結果。我們報告的收入為 35 億美元，非 GAAP 毛利率為 31%，非 GAAP 每股收益為 0.79 美元。 2016 財年對我們公司來說是轉型的一年。我們採取了重大步驟，繼續發展成為領先的存儲解決方案公司，並以全球規模和廣泛的產品和技術資產恢復增長。

Given unabated growth in data and the increasing role technology plays in the lives of individuals and organizations large and small, we believe Western Digital is uniquely positioned to address the broadest range of storage opportunities in the marketplace. We embarked on a journey several years ago with a vision to provide a full spectrum of storage solutions. With the various acquisitions we have made so far, along with organically growing our capabilities, we are much further along today on that mission to help the market determine which solutions work best for a given application. We are a market and customer-driven organization, and we believe this strategy will deliver long-term value for our customers, shareholders, and employees.

鑑於數據的持續增長以及技術在個人和大小組織的生活中扮演的越來越重要的角色，我們相信西部數據具有獨特的優勢，可以應對市場上最廣泛的存儲機會。幾年前，我們開始了一段旅程，我們的願景是提供全方位的存儲解決方案。通過迄今為止我們進行的各種收購，以及我們能力的有機增長，我們今天在幫助市場確定最適合特定應用的解決方案這一使命上走得更遠。我們是一家以市場和客戶為導向的組織，我們相信這一戰略將為我們的客戶、股東和員工帶來長期價值。

With our long-term strategy clear, we are focused on execution. I am pleased to report that our integration activities associated with our acquisitions are going well. We are on target to achieve our synergy goals as a unified entity focused on addressing the tremendous growth of data and the evolving needs of our customers. Additionally, our near-term priorities include our transition to 3D NAND and the deleveraging of our balance sheet. We have achieved several recent milestones associated with these initiatives.

隨著我們的長期戰略明確，我們專注於執行。我很高興地報告，我們與收購相關的整合活動進展順利。我們的目標是實現我們的協同目標，作為一個統一的實體，專注於解決數據的巨大增長和客戶不斷變化的需求。此外，我們近期的優先事項包括我們向 3D NAND 的過渡和資產負債表的去槓桿化。我們最近實現了與這些舉措相關的幾個里程碑。

We have completed the rationalization and alignment of our product and technology road maps involving legacy WD, HGST, and SanDisk products, and we have shared this with our customers. We celebrated the opening of the new Fab2 wafer manufacturing facility in Japan with Toshiba, underscoring the continued strength of our 16-year partnership. We announced our Next-Generation 3D NAND technology, BiCS3, with an industry-leading 64 layers of vertical storage capability, pilot production of BiCS3 has commence, and we expect meaningful commercial volumes in the first half of calendar 2017. And, we repaid in full the $3 billion bridge loan associated with the financing of the SanDisk acquisition.

我們已經完成了涉及遺留 WD、HGST 和 SanDisk 產品的產品和技術路線圖的合理化和調整，並已與我們的客戶分享了這一點。我們慶祝與東芝在日本開設新的 Fab2 晶圓製造工廠，強調了我們 16 年合作夥伴關係的持續實力。我們宣布了我們的下一代 3D NAND 技術 BiCS3，它具有行業領先的 64 層垂直存儲能力，BiCS3 的試生產已經開始，我們預計 2017 年上半年將實現有意義的商業量。而且，我們在完成與 SanDisk 收購融資相關的 30 億美元過橋貸款。

We also remain focused on innovating and investing in our business to insure that we continue to remain agile in addressing changing market needs. At this important time in our Company's history, I am inspired by the enthusiasm and positive spirit of our employees and the favorable response to our enhanced value proposition by our customers. I will now ask Mike Cordano to provide his comments on the business operations.

我們還繼續專注於業務創新和投資，以確保我們在應對不斷變化的市場需求方面繼續保持敏捷。在我們公司歷史上的這個重要時刻，我受到員工的熱情和積極精神以及客戶對我們增強的價值主張的積極響應的鼓舞。我現在將請 Mike Cordano 提供他對業務運營的評論。

Thank you, Steve. Good afternoon, everyone. I'd like to echo Steve's excitement on what we have seen in the Company in the last 77 days since the close of the SanDisk acquisition. We are excited about the possibilities created by the combination for our customers, employees, and shareholders. Western Digital now has a broadened portfolio of solutions for the data center, client device, and client solution markets.

謝謝你，史蒂夫。大家下午好。自 SanDisk 收購結束後的過去 77 天裡，我想對史蒂夫對我們在公司所看到的一切感到興奮。我們對合併為我們的客戶、員工和股東創造的可能性感到興奮。 Western Digital 現在為數據中心、客戶端設備和客戶端解決方案市場提供了更廣泛的解決方案組合。

We have been combining our HGST and WD subsidiaries since last October in compliance with the Chinese Ministry of Commerce decision. Following the close of the SanDisk acquisition on May 12, we have made substantial progress in integrating all of our assets in the new Western Digital. The team has done a phenomenal job in reconciling and aligning the various product road maps, a complicated task executed well on a compressed timeline. We have identified key leaders for our various functions, and we are rapidly aligning the capabilities and talents of our employees. Coupled with a series of restructuring actions we have taken over the last two years against the backdrop of a declining HDD TAM, we have further streamlined our manufacturing footprint in recent months with the closure of two facilities in Japan and Malaysia and the announced closure of a facility in Singapore.

根據中國商務部的決定，自去年 10 月以來，我們一直在合併我們的 HGST 和 WD 子公司。在 5 月 12 日完成對 SanDisk 的收購後，我們在將所有資產整合到新的 Western Digital 方面取得了實質性進展。該團隊在協調和調整各種產品路線圖方面做得非常出色，這項複雜的任務在壓縮的時間線上執行得很好。我們已經為我們的各種職能確定了關鍵領導者，並且我們正在迅速調整我們員工的能力和才能。再加上過去兩年我們在 HDD TAM 下降的背景下採取的一系列重組行動，我們在最近幾個月關閉了日本和馬來西亞的兩家工廠，並宣布關閉一家工廠，進一步精簡了我們的製造足跡。在新加坡的設施。

Relative to our legacy Western Digital business, we have reduced our overall facilities footprint by almost one fifth and our headcount by almost one quarter over the last two fiscal years. Turning to the specifics of our Fourth-Quarter results, in HDDs, we achieved overall exabyte growth of 12% on a year-on-year basis primarily driven by shipments of our capacity enterprise HDDs to data center customers. Exabyte growth within our capacity Enterprise product line was 47% on a year-on-year basis, faster than the market growth rate thanks to the ongoing success of our helium platform. We believe this trend will continue in the second half of this calendar year as we ramp our 10-terabyte product to high volume, our third-generation helium drive. This product is a key differentiator for the Company as it provides us a generational advantage and has already created significant marketplace momentum.

相對於我們傳統的 Western Digital 業務，在過去兩個財年中，我們的整體設施足跡減少了近五分之一，員工人數減少了近四分之一。談到我們第四季度業績的具體情況，在硬盤驅動器方面，我們實現了 12% 的整體艾字節增長，這主要是由於我們向數據中心客戶提供的容量企業硬盤驅動器的出貨量。由於我們的氦氣平台不斷取得成功，我們容量企業產品線中的 Exabyte 增長率同比增長 47%，高於市場增長率。我們相信這一趨勢將在本日曆年下半年繼續，因為我們將我們的 10 TB 產品推向高容量，即我們的第三代氦氣驅動器。該產品是公司的一個關鍵差異化因素，因為它為我們提供了世代相傳的優勢，並且已經創造了巨大的市場動力。

In Enterprise SSDs, we saw strength in sales in both Enterprise and cloud customers. From a client devices perspective, we are benefiting from the growth -- growing attach rate of SSDs to PCs in both the commercial and consumer categories even as client HDD unit shipments decline year-over-year. In our other flash-related businesses, we saw a broad-based strength across several key markets and our operational execution was strong across-the-board. Our industry-leading 15-nanometer technology remained the work horse, and that accounted for the vast majority of our total supply. Manufacturing yields on 50-nanometer technology set another record and our sustained leadership in 2D NAND has continued to position us well in the key markets we serve.

在企業級固態硬盤中，我們看到了企業和雲客戶的銷售增長。從客戶端設備的角度來看，我們正受益於增長——儘管客戶端 HDD 單位出貨量同比下降，但商業和消費類別中 SSD 與 PC 的連接率不斷提高。在我們其他與閃存相關的業務中，我們看到了幾個關鍵市場的廣泛實力，我們的運營執行力全面強勁。我們行業領先的 15 納米技術仍然是主力軍，占我們總供應量的絕大部分。 50 納米技術的製造良率再創紀錄，我們在 2D NAND 領域的持續領先地位繼續使我們在我們服務的主要市場中處於領先地位。

Earlier this week, we were pleased to announce our next-generation 3D NAND technology called BiCS3. With 64 layers of vertical storage, BiCS3 will primarily feature our 3-bit per cell, or X3 architecture delivering the industry's smallest 256-gigabit chip. The combination of X3 and manufacturing innovations will allow us to extend our cost reduction capabilities beyond our 15-nanometer node. Consequently, we have decided to allocate a greater portion of our planned 3D NAND capacity conversion to BiCS3, instead of BiCS2, and this will allow us to rapidly convert to our next-generation 3D NAND technology in 2017. Additionally, we expect our 2D NAND technology to have a long tail as we will continue to utilize it for certain markets.

本週早些時候，我們很高興地宣布了名為 BiCS3 的下一代 3D NAND 技術。 BiCS3 具有 64 層垂直存儲，主要採用我們的每單元 3 位或 X3 架構，提供業界最小的 256 吉位芯片。 X3 與製造創新的結合將使我們能夠將我們的成本降低能力擴展到我們的 15 納米節點之外。因此，我們決定將我們計劃的 3D NAND 容量轉換的更大一部分分配給 BiCS3，而不是 BiCS2，這將使我們能夠在 2017 年快速轉換到我們的下一代 3D NAND 技術。此外，我們預計我們的 2D NAND技術有長尾，因為我們將繼續將其用於某些市場。

From a wafer fab standpoint, in the June quarter, we completed the planned 5% wafer capacity expansion for 2016, and this will provide us slightly more than 3 million wafers of captive output by the end of calendar 2016. Given the planned mix of 2D and 3D NAND technologies for the rest of the year, we expect our bit supply growth to be approximately 30% in calendar 2016, somewhat below our estimate for total industry bit supply growth as we had previously indicated. However, as we look to 2017, the planned rate of conversion of our 2D NAND capacity to BiCS3 will enable the mix of our 3D NAND wafer capacity to approach 40% of the total capacity by the end of 2017. This will place both our mix of 3D NAND capacity and our overall bit growth rate in line with the industry.

從晶圓廠的角度來看，在 6 月季度，我們完成了 2016 年 5% 的晶圓產能擴張計劃，到 2016 年年底，這將為我們提供略多於 300 萬片的自備晶圓產量。鑑於 2D 的計劃組合和 3D NAND 技術，我們預計 2016 年的位供應量增長約為 30%，略低於我們之前表示的行業位供應總量增長的估計。然而，展望 2017 年，我們的 2D NAND 產能向 BiCS3 的計劃轉換率將使我們的 3D NAND 晶圓產能組合在 2017 年底接近總產能的 40%。這將使我們的組合3D NAND 容量和我們的整體比特增長率與行業一致。

Switching to the near term, we believe the overall demand environment is better than it has been in recent quarters driven by the following. New product cycles in mobile devices and PCs are tail winds for our client business, along with seasonality. Additionally, SSDs are continuing to penetrate further into PCs, even as PC unit volumes shrink. We are seeing a tight supply of NAND as the industry transitions from 2D to 3D NAND technology, and we are experiencing stronger demand in non-SSD flash markets such as mobile, and there is demand pull from hyperscale customers in our cloud-related data center business.

轉向近期，我們認為整體需求環境比最近幾個季度要好，原因如下。移動設備和 PC 的新產品週期以及季節性對我們的客戶業務來說都是順風。此外，SSD 正在繼續深入滲透到 PC 中，即使 PC 單位體積縮小。隨著行業從 2D 向 3D NAND 技術過渡，我們看到 NAND 供應緊張，我們在移動等非 SSD 閃存市場遇到更強勁的需求，並且我們的雲相關數據中心的超大規模客戶需求拉動商業。

Offsetting these factors, we have seen share-driven price dynamics in certain pockets of the HDD market. These include the low end of the 2.5-inch HDD market and the 8-terabyte capacity point in capacity Enterprise. Consequently, we have moderated our participation in those areas. Our fiscal Q4 performance and forwarded guidance for fiscal Q1 takes these variables into account.

為了抵消這些因素，我們在 HDD 市場的某些領域看到了股票驅動的價格動態。其中包括 2.5 英寸 HDD 市場的低端和容量 Enterprise 中的 8 TB 容量點。因此，我們減少了對這些領域的參與。我們的第四季度財政業績和第一季度的前瞻性指導考慮了這些變量。

To wrap up my comments, Western Digital is very unique in our industry. The combination of WD, HGST, and SanDisk has allowed us to methodically augment our capabilities to become a truly broad-based storage solutions provider. We look forward to giving you ongoing updates on our business. With that, I will turn the call over to Olivier to review our Q4 financial results.

總結一下我的評論，Western Digital 在我們的行業中非常獨特。 WD、HGST 和 SanDisk 的結合使我們能夠有條不紊地增強我們的能力，成為一家真正具有廣泛基礎的存儲解決方案提供商。我們期待為您提供有關我們業務的持續更新。有了這個，我將把電話轉給奧利維爾來審查我們第四季度的財務業績。

Thank you, Mike. Our revenue for the June quarter was $3.5 billion. Including the partial period of SanDisk ownership, our non-GAAP gross margin was 31%, and operating expenses totaled $691 million. Interest and other expense for the quarter included $181 million of interest expense related to the debt for the SanDisk acquisition. Non-GAAP tax benefit for the June quarter was $24 million due to the impact of interest expense related due to the SanDisk acquisition. On a non-GAAP basis, net income was $208 million, or $0.79 per share.

謝謝你，邁克。我們 6 月季度的收入為 35 億美元。包括持有 SanDisk 的部分期間，我們的非 GAAP 毛利率為 31%，運營費用總計 6.91 億美元。本季度的利息和其他費用包括與 SanDisk 收購債務相關的 1.81 億美元利息費用。由於與 SanDisk 收購相關的利息支出的影響，6 月季度的非 GAAP 稅收優惠為 2400 萬美元。按非美國通用會計準則計算，淨收入為 2.08 億美元，或每股 0.79 美元。

In the June quarter, we generated $355 million in cash from operations, and our free cash flow totaled $114 million. Our net CapEx totaled $241 million. We also declared a dividend in the amount of $0.50 per share. We closed the quarter with total cash and cash equivalents of $8.2 billion of which approximately $1.3 billion was held in the US. After the close of the June quarter and as Steve mentioned earlier, we utilized $3 billion to pay off the bridge loan.

在 6 月季度，我們從運營中產生了 3.55 億美元的現金，我們的自由現金流總計 1.14 億美元。我們的淨資本支出總計 2.41 億美元。我們還宣布派發每股 0.50 美元的股息。本季度結束時，我們的現金和現金等價物總額為 82 億美元，其中約 13 億美元在美國。在 6 月季度結束後，正如史蒂夫之前提到的，我們動用了 30 億美元來償還過橋貸款。

Finally, I would like to thank Steve and the rest of the leadership team at Western Digital, our employees, and the investment community for your partnership and support over the last two years during my tenure as CFO. As I leave Western Digital to pursue other opportunities, I am confident in Mark's leadership to guide the finance and strategy organization and the Company through the transformation that we have undertaken. Mark?

最後，我要感謝 Steve 和 Western Digital 領導團隊的其他成員、我們的員工以及投資界在我擔任首席財務官的過去兩年裡給予的合作和支持。當我離開 Western Digital 去尋求其他機會時，我對 Mark 的領導能力充滿信心，他將帶領財務和戰略組織以及公司完成我們所進行的轉型。標記？

Thank you, Olivier. This is an exciting time for me to be leading the Company in this new role, and I look forward to meeting you in the weeks and months ahead. While I will be new to the CFO role at Western Digital, I've been with the Company and in the industry for many years. Before providing our September quarter guidance, let me say a few words about how we are evolving our reporting of the Company moving forward.

謝謝你，奧利維爾。對我來說，以這個新角色領導公司是一個激動人心的時刻，我期待在未來幾周和幾個月與您見面。雖然我是 Western Digital 首席財務官職位的新人，但我已經在公司和行業工作多年。在提供我們的 9 月季度指南之前，讓我先談談我們如何改進公司的報告。

With the close of the SanDisk acquisition, we are moving further into the execution phase of our value creation strategy, extending our platform across all segments of the storage landscape. We believe that we have a compelling long-term business model due to our comprehensive product offering and significant exposure to key growth sectors. As a result, we have an industry-leading business with above industry average margins and a balanced cash flow risk profile that leverages our diversified portfolio of storage technologies. Today, we have begun to evolve our reporting and disclosures in our commentaries and quarterly fact sheet consistent with our value creation strategy. We will report our business in terms of three primary end markets.

隨著對 SanDisk 收購的結束，我們將進一步進入價值創造戰略的執行階段，將我們的平台擴展到存儲領域的所有領域。我們相信，由於我們全面的產品供應和對關鍵增長領域的重要接觸，我們擁有一個引人注目的長期商業模式。因此，我們擁有行業領先的業務，利潤率高於行業平均水平，現金流風險狀況均衡，利用了我們多樣化的存儲技術組合。今天，我們已經開始根據我們的價值創造戰略，在我們的評論和季度情況說明書中改進我們的報告和披露。我們將根據三個主要終端市場報告我們的業務。

One, data center devices and solutions. Two, client devices, and three, client solutions. Our quarterly fact sheet describes which specific product and solution types are included in each of these three end markets. Within these categories, our reporting will focus on the drivers of value including revenue and exabytes shipped. We will also be providing qualitative gross margin commentary associated with our bit allocation and mix-up strategies for our NAND and HDD products, respectively.

一、數據中心設備及解決方案。二，客戶端設備，三，客戶端解決方案。我們的季度情況說明書描述了這三個終端市場各自包含哪些特定產品和解決方案類型。在這些類別中，我們的報告將重點關注價值驅動因素，包括收入和出貨的艾字節數。我們還將分別針對我們的 NAND 和 HDD 產品提供與我們的位分配和混合策略相關的定性毛利率評論。

We have discontinued providing the following information in the quarterly fact sheet. Revenue from Top 10 customers, Enterprise SSDs, and non-PC applications. We believe these metrics are less relevant today given the diversification of our business. As we continue to evaluate the best way for us to disclose the drivers of our business, we will evolve our reporting in the coming quarters. This may result in the addition or deletion of some of the information provided today.

我們已停止在季度情況說明書中提供以下信息。來自前 10 大客戶、企業 SSD 和非 PC 應用程序的收入。我們認為，鑑於我們業務的多元化，這些指標在今天的相關性較低。隨著我們繼續評估披露業務驅動因素的最佳方式，我們將在未來幾個季度改進我們的報告。這可能會增加或刪除今天提供的某些信息。

In the coming quarters, we will also provide additional commentary on key operating activities including achievement of our synergy and cost reduction objectives and key technology milestones. We believe these reporting modifications provide the best balance considering an evolving market, our value creation drivers, and our historical reporting practices. Over the near term, we will continue to make certain legacy disclosures available to allow for a transition between our historical and new reporting. We expect to make a full transition by the end of this fiscal year.

在未來幾個季度，我們還將對關鍵運營活動提供更多評論，包括實現我們的協同效應和成本降低目標以及關鍵技術里程碑。我們認為，考慮到不斷變化的市場、我們的價值創造驅動因素和我們的歷史報告實踐，這些報告修改提供了最佳平衡。在短期內，我們將繼續提供某些遺留披露信息，以便在我們的歷史報告和新報告之間進行轉換。我們預計將在本財年末完成全面過渡。

At our Investor Day on December 6, we will provide a deeper dive into our overall strategy. At that time, we will discuss our long-term strategy and target financial and business model which should provide further clarity on what we expect to deliver across key financial metrics including gross margin, OpEx, operating margin, CapEx, tax, and cash flow for the new Western Digital. Our overall objective as it relates to our disclosures and communication is to provide an appropriate level of transparency while balancing competitive considerations and still allowing for a deep understanding and discussion of our business.

在 12 月 6 日的投資者日，我們將深入探討我們的整體戰略。屆時，我們將討論我們的長期戰略和目標財務和商業模式，這將進一步明確我們期望通過關鍵財務指標實現的目標，包括毛利率、運營支出、營業利潤率、資本支出、稅收和現金流新西部數據。我們與我們的披露和溝通相關的總體目標是提供適當水平的透明度，同時平衡競爭考慮並仍然允許對我們的業務進行深入了解和討論。

I would like to comment on a couple of items relating to the acquisition of SanDisk and the related financing that will impact our future non-GAAP and GAAP results. First, relating to debt financing of the SanDisk acquisition, we will be amortizing the debt discount and issuance costs over the term of the debt, and this will result in charges that we will include in interest expense of $23 million in fiscal Q1 and approximately $18 million each quarter thereafter over the next five years. These debt discount and issuance costs are incremental to the cash interest payments we will make. Second, due to purchase accounting rules, we had to reset the SanDisk Japanese Yen hedges for inventory purchases, eliminating approximately $51 million in unrealized gains that we would have reduced cost of sales by approximately $26 million in fiscal Q1 and $17 million in fiscal Q2. We will still receive the cash related to these Yen hedges.

我想評論與收購 SanDisk 和相關融資有關的幾個項目，這些項目將影響我們未來的非 GAAP 和 GAAP 結果。首先，與 SanDisk 收購的債務融資有關，我們將在債務期限內攤銷債務折扣和發行成本，這將導致我們將在第一財季計入 2300 萬美元的利息支出和約 18 美元的費用在接下來的五年裡，每個季度都有 100 萬美元。這些債務折扣和發行成本是我們將支付的現金利息的增量。其次，由於採購會計規則，我們不得不為庫存採購重置 SanDisk 日元對沖，消除了大約 5100 萬美元的未實現收益，我們本可以在第一財季和第二財季將銷售成本降低約 2600 萬美元和 1700 萬美元。我們仍將收到與這些日元對沖相關的現金。

With that, I will now provide our guidance for the September quarter. We expect revenue to be in the range of $4.4 billion to $4.5 billion. On a non-GAAP basis, we expect gross margin of approximately 32%, operating expenses of approximately $875 million, interest and other expense of approximately $245 million, tax expense of approximately $50 million, share count of approximately 290 million, and we estimate non-GAAP earnings per share between $0.85 and $0.90. I will now turn the call over to the Operator to begin the Q&A session. Operator?

有了這個，我現在將提供我們對 9 月季度的指導。我們預計收入將在 44 億美元至 45 億美元之間。在非 GAAP 基礎上，我們預計毛利率約為 32%，運營費用約為 8.75 億美元，利息和其他費用約為 2.45 億美元，稅收費用約為 5000 萬美元，股票數量約為 2.9 億股，我們估計非-GAAP 每股收益在 0.85 美元至 0.90 美元之間。我現在將把電話轉給接線員以開始問答環節。操作員？

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Sherri Scribner of Deutsche Bank.

我們的第一個問題來自德意志銀行的 Sherri Scribner。

Hi, thank you. I was a little confused about the Yen commentary that you made about the hedges. Can you maybe explain where that's going to sit and why that changed? And, can you also help us understand what the impact of the Yen will be going forward and how we should think about that for earnings? Thank you.

嗨，謝謝你。我對你對對沖的日元評論感到有點困惑。你能解釋一下它會在哪里以及為什麼會發生變化嗎？而且，您能否也幫助我們了解日元將產生什麼影響以及我們應該如何考慮收益？謝謝。

Sure, Sherri. All we were describing in the commentary was the fact that the purchase accounting rules forced us or required us to eliminate certain benefits we would have otherwise had from the financial statements going forward by mark-to-market rules for the hedge instruments so the impact as we mentioned is a total of $51 million in unrealized gains. Those gains would have been spread out over the next few quarters and in fiscal Q1 we would have had a benefit of $26 million, and in fiscal Q2, we would have had a benefit of $17 million. The remainder would have applied in future quarters.

當然，雪莉。我們在評論中所描述的是這樣一個事實，即購買會計規則迫使我們或要求我們消除我們本可以從財務報表中獲得的某些收益，否則我們會根據對沖工具的按市值計算規則從財務報表中獲得收益，因此影響我們提到的是總計 5100 萬美元的未實現收益。這些收益將在接下來的幾個季度中分攤，在第一財季，我們將獲得 2600 萬美元的收益，而在第二財季，我們將獲得 1700 萬美元的收益。其餘部分將在未來幾個季度應用。

So, that accounts for the change in reporting due to purchase accounting. With respect to how we deal with the Yen going forward, I think it's important to realize that our current combined Company dependence on the Yen is now significantly diminished. For SanDisk, their COGS were approximately 45% related to the Yen. For the combined Company, that dependence will drop to 15%. Nonetheless, we will continue our active hedging program to insure that we are able to manage the volatility of the currency during the fiscal quarter and throughout the fiscal year through our hedging mechanisms.

因此，這說明了由於採購會計引起的報告變化。關於我們未來如何處理日元，我認為重要的是要認識到我們目前公司對日元的綜合依賴現在已大大減少。對於 SanDisk，他們的 COGS 大約有 45% 與日元相關。對於合併後的公司，這種依賴性將降至 15%。儘管如此，我們將繼續我們積極的對沖計劃，以確保我們能夠通過我們的對沖機制在本財季和整個財年管理貨幣的波動。

Sherri, this is Steve. Just to add one comment to that. I think that it's important to note, and we've gone through this in terms of our legacy hard drive business. There is always a number of different areas that create potential volatility in our business. It's our job from the management perspective to manage that volatility and to reduce its impact on our P&L, on our balance sheet and corresponding impact on shareholders. So, a fluctuation in the Yen just like changes in other variables that we deal with, our job is to manage that. And, by the way, absent the impact -- I don't want to say absent but even with the impact of purchase accounting, we're able to offset largely the impact in terms of the change in the value of the Yen on our first-quarter results, and I think it's important to emphasize that fact.

雪莉，這是史蒂夫。只是為了添加一個評論。我認為值得注意的是，我們已經在傳統硬盤業務方面經歷了這一點。總是有許多不同的領域會在我們的業務中造成潛在的波動。從管理的角度來看，我們的工作是管理這種波動並減少其對我們損益表、資產負債表的影響以及對股東的相應影響。因此，日元的波動就像我們處理的其他變量的變化一樣，我們的工作就是管理它。順便說一句，沒有影響——我不想說沒有，但即使有採購會計的影響，我們也能夠在很大程度上抵消日元價值變化對我們的影響第一季度的結果，我認為強調這一事實很重要。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Rich Kugele with Needham & Company.

謝謝。我們的下一個問題來自 Needham & Company 的 Rich Kugele。

Thank you. A couple questions, I guess. First, when it comes to the OpEx, I assume that going forward you're just going to give a combined number for OpEx? Is there any sense you could give us today on the breakdown between the two business lines? And, should we assume that from [$875 million] that it declines at some pace over the balance of FY17? Thanks.

謝謝。我想有幾個問題。首先，當談到 OpEx 時，我假設您今後只是要給出 OpEx 的組合數字？關於兩條業務線之間的細分，您今天能告訴我們什麼意義嗎？而且，我們是否應該假設它從 [8.75 億美元] 在 2017 財年的餘額中以某種速度下降？謝謝。

So, Rich, this is Steve. The first thing is that we will only be providing total OpEx guidance going forward. We will not be providing if you want to call it separate legacy WDC or legacy SanDisk as we move through the integration process. It will become kind of impossible to do that because we'll be combining -- we're in the process of combining the Companies. Then, your assumption is correct that as we move through one, through the tail end of calendar 2016 and into 2017 as we begin to realize synergies, we will see our OpEx begin to decline absent other investments that we need to make to continue to innovate in our business.

所以，里奇，這是史蒂夫。首先，我們只會提供未來的總體運營支出指導。在我們完成集成過程時，如果您想將其稱為單獨的遺留 WDC 或遺留 SanDisk，我們將不會提供。這樣做將變得有點不可能，因為我們將合併——我們正在合併公司。然後，您的假設是正確的，當我們經歷一個，從 2016 年的尾聲到 2017 年，隨著我們開始實現協同效應，我們將看到我們的 OpEx 開始下降，因為我們需要進行其他投資以繼續創新在我們的業務中。

Okay, and then maybe this is best for Mike. Can you give us any sense on the high cap demand environment? In particular what the hyperscale buildout plans are over the next, call it, three to six months? Are you confident that the share -- the overall share you've got should improve with the 10 terabyte as an example?

好吧，也許這對 Mike 來說是最好的。您能否告訴我們有關高上限需求環境的任何信息？特別是接下來三到六個月的超大規模擴建計劃是什麼？您是否有信心以 10 TB 為例，您所擁有的份額應該有所改善？

Yes, I think that trend relative to overall share should be favorable with the adoption of the 10 terabyte. We also see the trend of petabyte growth sort of moving to the high end of the range. So, we would see the general demand situation in that group of customers as being steady and running at slightly to the high end of the petabyte growth range. So, approaching 40% is what you should think about.

是的，我認為隨著 10 TB 的採用，相對於整體份額的趨勢應該是有利的。我們還看到 PB 增長的趨勢有點向范圍的高端移動。因此，我們會看到該組客戶的總體需求情況是穩定的，並且運行在 PB 增長范圍的高端。所以，接近 40% 是你應該考慮的。

Okay. Thank you, Olivier, and congratulations, Mark.

好的。謝謝你，奧利維爾，祝賀你，馬克。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Katy Huberty with Morgan Stanley.

謝謝。我們的下一個問題來自 Katy Huberty 與 Morgan Stanley 的對話。

Thanks, good afternoon. How should we think about the trajectory of gross margins from here in not just the September quarter as the purchase accounting hit rolls off, better pricing environment given the tighter NAND supply? And then, how negative is the impact of ramping 3D NAND when you take those factors together? How should we just think from a high level about the trajectory of gross margins? Thank you.

謝謝，下午好。我們應該如何考慮從這裡開始的毛利率軌跡，而不僅僅是在 9 月這個季度，隨著採購核算的減少，以及鑑於 NAND 供應趨緊，更好的定價環境？然後，當您將這些因素綜合考慮時，3D NAND 的影響有多大？我們應該如何從高層次思考毛利率的軌跡？謝謝。

Katy, so to make a few comments. One thing just to -- I'll call it remind everybody is when we do the December 6 Investor Day, we'll obviously be providing updated margin range. We'll also be talking more qualitatively about the hierarchy of our margins between the three different -- the slices of revenue that we're providing data center as well as client devices, et cetera. And so, we will be providing additional color going forward. Relative to the trajectory of our margins, it's a little bit early to make a call on that because there's obviously a lot of variables going on which we sort of alluded to in Mike's commentary. So, I don't want to get to over my skis in terms of forecasting where we think our margins are going to trend. So, I'll leave it at that.

凱蒂，所以要發表一些評論。一件事只是——我稱之為提醒大家，當我們在 12 月 6 日的投資者日舉辦時，我們顯然會提供更新的保證金範圍。我們還將更定性地討論我們在三個不同方面的利潤等級——我們提供數據中心和客戶端設備等的收入部分。因此，我們將在未來提供更多顏色。相對於我們的利潤率軌跡，現在就此做出呼籲還為時過早，因為顯然有很多變數在發生，我們在邁克的評論中提到了這些變數。因此，我不想在預測我們認為我們的利潤率趨勢方面變得過分。所以，我會保留它。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Aaron Rakers with Stifel Nicolaus.

謝謝。我們的下一個問題來自 Aaron Rakers 與 Stifel Nicolaus 的對話。

Yes, thank you for taking the questions. The first question, I have a follow-up real quick. You talked about the progression of the synergies and moving forward favorably on that front. I'm curious as you look specifically at the Hitachi integration, and I think the target was exiting this year at $475 million of realized synergies. Where did you come out this quarter with regard to realizing that level of synergies? And, how do we think about the progression as we look through FY17?

是的，謝謝你提出問題。第一個問題，我很快就會跟進。你談到了協同作用的進展，並在這方面取得了積極進展。我很好奇，因為你特別關注日立的整合，我認為今年的目標是以 4.75 億美元的已實現協同效應退出。在實現這種協同效應方面，本季度您從哪裡出來的？而且，我們如何看待 2017 財年的進展？

So, I'll take that, and then Olivier or Mark can comment. First off, we are on track to achieving the synergy targets that we set for ourselves as well as outlined externally. We were not specific when we did that as to how that would reflect itself from a quarterly basis. We talked about where we would end up in terms of calendar 2016 as well as in calendar 2017. I believe that we suggested to the investment community that you use some sort of, I'll call it, straight line kind of projection in that regard. I would say that generally speaking that's about where we are at, but we're on track to our calendar year-end synergy targets.

所以，我會接受，然後 Olivier 或 Mark 可以發表評論。首先，我們有望實現我們為自己設定的以及外部概述的協同目標。當我們這樣做時，我們並沒有具體說明這將如何從季度的基礎上反映出來。我們討論了 2016 年和 2017 年的最終結果。我相信我們建議投資界在這方面使用某種，我稱之為直線預測.我想說的是，一般來說這就是我們所處的位置，但我們正朝著我們日曆年終的協同目標邁進。

Okay, and real quick follow-up. Can you talk a little bit about the variables we should consider with regard to free cash flow generation as we move out over the next several quarters? What specifically CapEx trends we should think about?

好的，真正的快速跟進。你能談談我們在接下來的幾個季度搬遷時應該考慮的關於自由現金流產生的變量嗎？我們應該特別考慮哪些資本支出趨勢？

So, for the CapEx considerations, I think it's important to remember what the CapEx requirements were for each of the separate businesses, and then we can think about them on a combined basis. So, we were looking at 5% to 7% of revenue from the HDD business although we were running a little below that. And then for cash CapEx for the SanDisk business, they were running in the 8% to 10% range. On a combined basis, I think it would be safe to look at something in the 6% to 8% range for planning purposes.

因此，對於資本支出的考慮，我認為重要的是要記住每個單獨業務的資本支出要求是什麼，然後我們可以綜合考慮它們。因此，我們希望硬盤業務的收入佔 5% 至 7%，儘管我們的運行速度略低於該水平。然後對於 SanDisk 業務的現金資本支出，他們在 8% 到 10% 的範圍內運行。綜合來看，我認為出於規劃目的考慮 6% 到 8% 的範圍是安全的。

And then, I would just add in terms of free cash flow. One of the things that we will be doing, again in conjunction with the December Investor Day, is resetting what we see as our cash conversion targets. We've got a bit more work to do on that as we increase our understanding and also look for optimization opportunities in terms of the combined business and obviously with the profit ranges in terms of margin, OpEx, et cetera. That will allow for a better modeling of where we think our operations cash flow will turn out, and then you would back off the CapEx from that to be able to estimate what our free cash flow would be going forward.

然後，我只想添加自由現金流。我們將再次與 12 月投資者日一起做的事情之一是重新設置我們認為的現金轉換目標。隨著我們加深理解，並在合併業務方面尋找優化機會，顯然在利潤率、運營支出等方面的利潤範圍內，我們還有更多的工作要做。這將允許更好地建模我們認為我們的運營現金流將在哪裡出現，然後您可以從中退出資本支出，以便能夠估計我們未來的自由現金流量。

Right, and we tried to provide you with visibility into our cash interest expense by highlighting what we were amortizing in terms of the debt discount and issuance expenses. So, I think you have the drivers of our free cash flow laid out.

是的，我們試圖通過強調我們在債務貼現和發行費用方面的攤銷來讓您了解我們的現金利息費用。所以，我認為你已經列出了我們自由現金流的驅動因素。

Okay, thank you.

好的謝謝。

Thank you. Our next question comes from the line of Ananda Baruah with Brean Capital.

謝謝。我們的下一個問題來自 Ananda Baruah 與 Brean Capital 的對話。

Hi. Thanks for taking the questions. Congrats on the solid quarter. Olivier, we will miss working with you, and Mark, welcome. Two, if I could. A little bit of an old-school question. Steve, what's your TAM view for the second half of the year -- calendar year now that the TAM is a little bit firmer than we thought or you thought it might be entering the quarter. And then, I have a follow-up as well. Thanks.

你好。感謝您提出問題。祝賀這個穩定的季度。 Olivier，我們會想念和你一起工作的，Mark，歡迎。兩個，如果可以的話。有點老派的問題。史蒂夫，你對今年下半年的 TAM 看法是什麼——日曆年，因為 TAM 比我們想像的要堅挺一點，或者你認為它可能會進入這個季度。然後，我也有後續行動。謝謝。

So, I would say that in terms of I'm not going to make a call on the back half in terms of quantitatively. Obviously, I'm going to give you a very dissatisfying answer. We would expect that the TAM will be higher in the second half than it was in the first half as a general statement. But, more specifically, as it relates to calendar Q3, our fiscal Q1, I would say that we would expect the hard drive TAM to be in the range of about 110 million units.

所以，我會說，就數量而言，我不會在後半部分打個電話。顯然，我會給你一個非常不滿意的答案。一般而言，我們預計下半年的 TAM 將高於上半年。但是，更具體地說，由於它涉及日曆 Q3，我們的財政 Q1，我會說我們預計硬盤 TAM 將在大約 1.1 億個單位的範圍內。

Okay, great. That's actually very helpful in both regards. And then, the follow-up for me is just with regard to the near-line commentary that you made. It sounds like you're expecting pretty solid near-line demand in the second half of the year. I think a comment with the regards to the 10-terabyte helium ramping was you expect to -- was it gain share? As you go through that process. If you could clarify that. And then, a follow-on to that was I'd love your view on where normalized share is on 8 terabytes since [you're -- you did] obviously seem to get some meaningful volume back in the June quarter, thanks.

好的，太好了。這實際上在兩個方面都非常有幫助。然後，我的後續行動只是關於你所做的近線評論。聽起來您預計今年下半年的近線需求非常穩定。我認為關於 10 TB 氦氣增長的評論是你期望的——它獲得了份額嗎？當你經歷這個過程時。如果你能澄清一下。然後，接下來是我喜歡你對標準化份額在 8 TB 上的看法，因為 [你 - 你確實] 顯然似乎在 6 月季度獲得了一些有意義的數量，謝謝。

Yes, first to seasonality. We see it slightly higher sort of a 48-52 across the calendar year relative to petabyte linearity in the year so heavier in the back half than the first. I think my statements around 10 terabyte were interpreted correctly. I think we have exceeded, as you might expect, some 8 terabyte share as our major competitor ramped. We think we're in a leading position on 10 terabyte which will benefit us in the back half of the year.

是的，首先是季節性。我們看到它在整個日曆年中略高於 48-52，相對於當年的 PB 線性度，因此後半部分比第一部分更重。我認為我對大約 10 TB 的陳述的解釋是正確的。我認為，正如您所料，隨著我們的主要競爭對手的崛起，我們已經超過了大約 8 TB 的份額。我們認為我們在 10 TB 方面處於領先地位，這將使我們在今年下半年受益。

The other thing that I would add is that we are not expecting to [cede] any more share.

我要補充的另一件事是，我們不希望再[放棄]任何份額。

That's very helpful. Thanks a lot.

這很有幫助。多謝。

Thank you. Our next question comes from the line of Mehdi Hosseini with SIG.

謝謝。我們的下一個問題來自 SIG 的 Mehdi Hosseini。

Thanks for taking my question. Looking at your guide and your commentary about a tight NAND supply, how should we think about the NAND assumption that is dialed in? And, is that a realistic assumption? Or, if the tightness were to sustain, would there be an upside from a NAND ASP side? And, I have a follow-up.

感謝您提出我的問題。查看您的指南和您對 NAND 供應緊張的評論，我們應該如何考慮撥入的 NAND 假設？而且，這是一個現實的假設嗎？或者，如果供應緊張持續下去，NAND ASP 方面是否會有上漲空間？而且，我有一個後續行動。

Yes, I'll comment a little bit. Well, two things. One is we see the tightness through the end of the year so that will have a benefit relative to bit price. We won't comment on the specifics of that. The way we also see it a little longer term, and this really relates to a new industry model, if you will, is the rate of bit cost decline is going to move into a regime that will center around a 20% or so per year. We think barring supply-demand dynamics that's the way the broader market should begin to look at the industry as we proceed into the 3D NAND era.

是的，我會評論一點。好吧，有兩件事。一是我們看到到今年年底的緊張情況，因此相對於比特幣價格將有好處。我們不會評論其中的細節。我們也從更長遠的角度看待它，這確實與新的行業模式有關，如果你願意的話，比特成本下降的速度將進入一個以每年 20% 左右為中心的狀態.我們認為，在我們進入 3D NAND 時代時，除了供需動態，更廣泛的市場應該開始看待這個行業。

Okay, great. And, since you mentioned next year and the mix of BiCS3. I'm just trying to better understand your strategy, and I do realize you are going to have an Analyst Day in December. But, if the mix of BiCS3 is going to exceed your prior expectation or going to have a higher mix of the 64 layer, do you foresee a scenario where you would better able to price your SSDs? Or, is that going to better help your raw NAND customer? How should we think about this mix shift and its impact to your product offering?

好的，太好了。而且，既然你提到了明年和 BiCS3 的混合。我只是想更好地了解您的策略，我確實知道您將在 12 月舉行分析師日。但是，如果 BiCS3 的混合將超出您之前的預期或將有更高的 64 層混合，您是否預見到一種情況，您可以更好地為您的 SSD 定價？或者，這會更好地幫助您的原始 NAND 客戶嗎？我們應該如何考慮這種組合轉變及其對您的產品供應的影響？

Well, I might comment on part of this, but let me make one thing clear. Part of the strategy that SanDisk had and accordingly our strategy which, oh, by the way we concurred with is that we want to manage technology transitions when it makes sense from a cost standpoint. So, right now, we have the leading 2D planar technology from a cost standpoint, so we want to intersect 3D NAND technology when we think it is cost competitive to the incumbent 2D NAND technology. We believe that that will occur with our BiCS3 technology. And, we're pleased with the progress. We've still got a lot of work that we have got to do to go make that happen. But, that's where we believe with 64 layers -- that's where we believe that that cost crossover point will begin to occur and will be ramping accordingly when that takes place through 2017. So, I'll have Mike comment from a product perspective.

好吧，我可能會對其中的一部分發表評論，但讓我澄清一件事。 SanDisk 的部分戰略以及相應的我們的戰略，哦，順便說一句，我們同意的方式是，我們希望在從成本角度來看有意義的時候管理技術轉型。所以，現在，從成本的角度來看，我們擁有領先的 2D 平面技術，所以當我們認為 3D NAND 技術與現有的 2D NAND 技術相比具有成本競爭力時，我們希望與 3D NAND 技術相交。我們相信我們的 BiCS3 技術會實現這一點。而且，我們對進展感到滿意。我們還有很多工作要做才能實現這一目標。但是，這就是我們相信 64 層的地方 - 這就是我們相信成本交叉點將開始出現的地方，並且在 2017 年發生時會相應地增加。所以，我將從產品的角度讓 Mike 發表評論。

In addition to the general base of cost advantage that Steve just described, it really allows us to allocate sooner and a larger amount of 3D NAND into our broad product base. So, we're going to apply it where it gives us most value first which are higher density applications or products so you can imagine what those are. Both classes of SSD and certain classes of embedded will benefit directly from that. So, our ability to bring those products into the market sooner and at higher volume is the general way to think about that.

除了 Steve 剛剛描述的成本優勢的一般基礎之外，它確實讓我們能夠更快地將更多的 3D NAND 分配到我們廣泛的產品基礎中。因此，我們將首先把它應用到它能給我們帶來最大價值的地方，即更高密度的應用程序或產品，這樣你就可以想像它們是什麼了。 SSD 類別和某些嵌入式類別都將直接從中受益。因此，我們將這些產品更快、更大量地推向市場的能力是考慮這一點的一般方式。

Great. And, I want to congratulate Olivier and the best of luck in his next endeavor.

偉大的。而且，我要祝賀奧利維爾，祝他在接下來的努力中好運。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Mark Moskowitz with Barclays.

謝謝。我們的下一個問題來自巴克萊銀行的 Mark Moskowitz。

Yes, thank you. Good afternoon. Steve and Mike, I was hoping you could maybe talk a little more about the underlying business patterns for both SSD and HDD? Typically speaking you're coming around the 110 TAM in September. Can you talk about the puts and takes in terms of where you're seeing some signs of life and renewal of the NAND versus areas of challenge? And, the same thing for the SSD piece. And then, Mark I do appreciate the direction and the messaging in terms of around more holistic reporting down the road so we all look forward to that. I had a question though in terms of the gross margin? Could you talk a little about how we should think about the gross margin in the near to midterm? Is there any business that is going to be underperforming or out-earning before we get to the December Analyst meeting on the margin?

是的，謝謝。下午好。 Steve 和 Mike，我希望你們能多談談 SSD 和 HDD 的底層業務模式？通常來說，您會在 9 月到達 110 TAM。你能談談你看到 NAND 的一些生命跡象和更新與挑戰領域的投入和投入嗎？而且，對於 SSD 部件也是如此。然後，馬克，我很欣賞圍繞更全面的報導的方向和信息，所以我們都期待著這一點。我對毛利率有疑問？你能談談我們應該如何考慮近期和中期的毛利率嗎？在我們參加 12 月的分析師會議之前，是否有任何業務表現不佳或收入超過利潤？

Yes, so Mike can take the color on the 110 TAM.

是的，所以 Mike 可以在 110 TAM 上取色。

I think the things to think about by segment -- PC growth has moderated in terms of the declines. We've seen that flatten out. That's helpful as we enter into the second half as we see normal seasonality give us a little bit of a boost. I talked already about what our thoughts are around capacity Enterprise. That will continue to be an area of growth within the hard drive segment.

我認為按細分市場考慮的事情——個人電腦的增長在下降方面有所放緩。我們已經看到這種情況趨於平緩。這對我們進入下半年很有幫助，因為我們看到正常的季節性給我們帶來了一點提振。我已經談到了我們對企業容量的看法。這將繼續成為硬盤驅動器領域的增長領域。

The other area to comment on is performance Enterprise. We do see that continuing to have pressure from SSD, so there's been a downward trend in that market. We expect on a year-over-year basis, something in the 25% range. And then, lastly, gaming is up seasonally given the traditional holiday seasons. The current quarter is a high volume quarter for gaming so that's the way to dimension the HDD world. Within the broader solid state markets, I think I made reference to this in my comments. We're really seeing strong demand across all segments embedded, client SSD, and ESSD or Enterprise SSD. As expected, but growth continues.

另一個要評論的領域是績效企業。我們確實看到 SSD 繼續承受壓力，因此該市場一直呈下降趨勢。我們預計同比增長在 25% 左右。然後，最後，考慮到傳統的假日季節，遊戲會季節性增長。本季度是遊戲的高銷量季度，因此這是衡量 HDD 世界的方式。在更廣泛的固態市場中，我想我在評論中提到了這一點。我們確實看到了所有嵌入式、客戶端 SSD 和 ESSD 或企業 SSD 細分市場的強勁需求。正如預期的那樣，但增長仍在繼續。

And, just a comment on our margins, and I'll ask Mark to add a comment about a little bit about the hierarchy of our margins. But, I want to impress one point that all of our margins by product continue to perform consistent with our expectations and what we would consider to be our own internal margin ranges. So, no issues in terms of that, but I'll ask Mark to talk about the hierarchy of our margins.

而且，只是對我們的邊距發表評論，我會請馬克添加一些關於我們邊距層次結構的評論。但是，我想強調一點，我們所有產品的利潤率繼續符合我們的預期以及我們認為是我們自己的內部利潤率範圍。所以，這方面沒有問題，但我會請馬克談談我們利潤率的層次結構。

Sure, Mark. So, basically, when we look at the hierarchy of gross margin, the highest performing area for us is in the data center devices and solutions. Then, that's followed by our client solutions, and then the third level in the hierarchy is client devices. And, as Steve pointed out, we are seeing the expected performance in each of those categories.

當然，馬克。因此，基本上，當我們查看毛利率的層次結構時，對我們來說表現最好的領域是數據中心設備和解決方案。然後是我們的客戶端解決方案，然後是層次結構中的第三層是客戶端設備。而且，正如史蒂夫指出的那樣，我們在每個類別中都看到了預期的表現。

Thank you.

謝謝。

Thank you. Our next question comes from the line of Amit Daryanani with RBC Capital Markets.

謝謝。我們的下一個問題來自 RBC Capital Markets 的 Amit Daryanani。

Thanks a lot for taking my questions.

非常感謝您回答我的問題。

We cannot hear you.

我們聽不到你的聲音。

Hopefully, this is better.

希望這會更好。

Yes.

是的。

I guess two questions. One, Mike, you talked about this 20% cost per bit decline as you go forward? Could you achieve that on the planar NAND side as well? And, would you have to go down half a node to get there in the next few quarters essentially? Or, was that more a long term comment you were making?

我想有兩個問題。第一，邁克，你談到了在你前進的過程中每比特成本下降 20% 嗎？您能否在平面 NAND 方面也實現這一目標？而且，在接下來的幾個季度中，您是否必須下降半個節點才能到達那裡？或者，這是您發表的更長期的評論嗎？

That's a long-term commentary, and it's enabled by the 3D NAND transition, both initially and then subsequent generations.

這是一個長期的評論，它是由 3D NAND 過渡實現的，無論是最初的還是隨後的幾代。

Got it. Could you just talk about the Samsung licensing revenues? Is the expectation that SanDisk was getting that obviously, but is your expectation that that holds firm as you go forward? It gets renewed? Or, do you think that rolls off to a lower number at some point?

知道了。您能談談三星的許可收入嗎？ SanDisk 的期望是否很明顯，但您的期望是否會隨著您的前進而堅定？會更新嗎？或者，您是否認為在某個時候會下降到一個較低的數字？

Well, a few clarifying comments. First off, we nor SanDisk have historically disclosed the amount of the royalty from Samsung. The additional thing is that the current royalty arrangement is up for renewal, and we're in discussions with Samsung regarding the terms of that renewal. I have no -- nothing to report in terms of the status of that other than we're currently in discussions with them. And then, the additional point that I will make which we talked about as part of the acquisition is that when we did our forward modeling of the impact of that, we were -- I will call it relatively conservative in terms of our assumptions. So, we did not get overly aggressive as to what we thought so we feel like we're sufficiently protected in terms of how that might turn out from a future financial modeling perspective.

好吧，一些澄清的評論。首先，我們和 SanDisk 都沒有披露過三星的專利使用費金額。另一件事是，當前的特許權使用費安排需要續簽，我們正在與三星就續籤條款進行討論。除了我們目前正在與他們討論之外，我沒有什麼可以報告的。然後，作為收購的一部分，我要提出的另一點是，當我們對其影響進行前瞻性建模時，我們 - 我將稱之為相對保守的假設。因此，我們並沒有對我們的想法過於激進，因此我們覺得從未來財務建模的角度來看，我們可能會得到充分的保護。

Perfect. Thank you.

完美的。謝謝。

Thank you. Our next question comes from the line of John Roy with UBS.

謝謝。我們的下一個問題來自瑞銀集團的 John Roy。

Great, thank you. Something a little mundane. Tax rate going forward? You guided to 20% to 25% for FY17 and 10% to 15% for FY18. Is that still what your thinking is? Or, can you narrow that range a little for us?

太好了謝謝。有點平凡的東西。未來的稅率？您指導 FY17 為 20% 至 25%，FY18 為 10% 至 15%。你的想法還是這樣嗎？或者，你能為我們稍微縮小那個範圍嗎？

Well, as we pointed out, we will be providing a much more fulsome financial model at our Analyst day in December. But, I think it's safe to assume that the ranges we provided for the guidance will actually be slightly lower. And, for FY17, we think that it will be something in the range of 15% to 20%.

好吧，正如我們指出的那樣，我們將在 12 月的分析師日提供一個更加豐富的財務模型。但是，我認為可以安全地假設我們為指導提供的範圍實際上會略低。而且，對於 FY17，我們認為它將在 15% 到 20% 的範圍內。

Great, thank you.

太好了謝謝。

Thank you. Our next question comes from the line of Stanley Kovler with Citi Research.

謝謝。我們的下一個問題來自花旗研究部的 Stanley Kovler。

Hi. Good afternoon. Thanks for taking the question. I just wanted to ask you about your plans for production capacity going forward? Especially in light of the TAM going up again next quarter. How should we think about where the industry capacity and specifically your capacity could go? Particularly as we exit 2017, if there could be more pressure on PC units, in particular? Are we thinking that maybe going down to 45 million capacity level for you is something that could be additive to the cost synergies out there as well?

你好。下午好。感謝您提出問題。我只是想問一下你們未來的產能規劃？特別是考慮到下個季度 TAM 再次上升。我們應該如何考慮行業產能，特別是您的產能將走向何方？特別是在 2017 年結束之際，PC 部門是否會面臨更多壓力？我們是否認為，對您來說，將產能水平降至 4500 萬可能會增加成本協同效應？

And then again, related cost question. But, on the SanDisk side, if we got the OpEx numbers right for WD standalone, it seems like the guidance for next quarter implies that the SanDisk OpEx is going up. Just wanted to see if you can provide a little bit more color on that? Thank you.

再一次，相關的成本問題。但是，在 SanDisk 方面，如果我們獲得了 WD 獨立的 OpEx 數字，那麼下一季度的指導似乎意味著 SanDisk OpEx 正在上升。只是想看看您是否可以提供更多顏色？謝謝。

One of the things -- the first question has to do with HDD capacity. So, just to comment on that. One of the things, and Mike said it. We have been very aggressive over a period of time of taking capacity out both in the form of brick and mortar as well as in terms of headcount to react to the decline we've seen in the hard drive market, and I want to emphasize those numbers. We've taken out 20% of our facilities and 25% of our headcount over the course of the last two years.

其中一件事——第一個問題與硬盤容量有關。所以，只是對此發表評論。其中一件事，邁克說了。一段時間以來，我們一直非常積極地以實體形式和員工人數的形式削減產能，以應對我們在硬盤市場上看到的下滑，我想強調這些數字。在過去兩年中，我們已經撤掉了 20% 的設施和 25% 的員工。

We also -- we have additional plans to reduce that further. Up to 1/3, and when you look at from two years ago and so we will continue to be as proactive as we possibly can. Obviously, our margins in terms of what we reported on the hard drive side shows that we've done a pretty good job of managing the cost side of the equation in terms of our infrastructure and capacity. I have no doubt that we'll continue to do that going forward. In terms of your comment on OpEx, the one thing that I would like to emphasize is that our guidance for fiscal Q1 assumes a higher level of incentive compensation so the increase is really a couple of different things. One there is a full quarter of SanDisk OpEx, but also a higher level of short-term incentive compensation funding as compared to the prior for fiscal Q4.

我們也 - 我們有進一步減少的額外計劃。最多 1/3，當你從兩年前看的時候，所以我們將繼續盡可能地積極主動。顯然，我們在硬盤驅動器方面報告的利潤率表明，我們在管理基礎設施和容量等式的成本方面做得非常好。我毫不懷疑我們將繼續這樣做。就您對 OpEx 的評論而言，我想強調的一件事是，我們對第一財季的指導假設了更高水平的激勵補償，因此增加實際上是兩件不同的事情。一個是 SanDisk OpEx 的四分之一，但與第四財季之前相比，短期激勵補償資金也更高。

Thank you. Our next question comes from the line of Joe Wittine with Longbow Research.

謝謝。我們的下一個問題來自 Longbow Research 的 Joe Wittine。

Thank you. Is there anything you can offer on free cash expectations for 2017 after doing a little over $100 million last quarter? And, with that, anything to offer as far as your thoughts behind the projected debt pay down schedule? Even qualitatively would be great. Thanks.

謝謝。在上個季度完成略高於 1 億美元後，對於 2017 年的自由現金預期，您有什麼可以提供的嗎？而且，就您對預計的債務償還時間表背後的想法而言，有什麼可以提供的嗎？即使在質量上也會很棒。謝謝。

So, in terms of free cash flow, we're going to provide updated guidance in December. I think that's the soonest we will give you more granularity. But, in terms of our debt pay down schedule, I think it's safe to assume we're going to be aggressive where we can be to pay that down as quickly as we can. Our long-term commitment remains the three to five-year horizon getting to 1.5 times leverage. And, as I mentioned as we can find ways whether it's our cash conversion cycle or other operational improvements to generate more free cash flow, we will look to use that to delever the balance sheet.

因此，就自由現金流而言，我們將在 12 月提供更新的指導。我認為這是最快的，我們會給你更多的粒度。但是，就我們的債務償還時間表而言，我認為可以安全地假設我們將積極進取，我們可以盡快償還債務。我們的長期承諾仍然是在三到五年內達到 1.5 倍的槓桿率。而且，正如我提到的，我們可以找到方法，無論是我們的現金轉換週期還是其他運營改進來產生更多的自由現金流，我們將尋求利用它來去槓桿化資產負債表。

Got it. And then, quickly on the legacy hard drive business. Apologize if this was covered already. But, the gap up in consumer units during the quarter, what drove that?

知道了。然後，快速開展傳統硬盤業務。如果已經涵蓋，請道歉。但是，本季度消費者單位的差距擴大，是什麼推動了這一點？

The gap up? What do you mean by gap up?

拉開差距？你說的差距是什麼意思？

I think it went from 7 million units to 10 million sequentially. Big sequential move. Unless I have the wrong numbers.

我認為它從 700 萬個單位依次增加到 1000 萬個。大的連續動作。除非我有錯誤的數字。

I'm not sure what you're referring to.

我不確定你指的是什麼。

Consumer HDD is 7.3 million in the March quarter and 10 million in the June quarter.

消費者硬盤在 3 月季度為 730 萬，在 6 月季度為 1000 萬。

So, that would be gaming.

所以，那將是遊戲。

It's all gaming.

都是遊戲。

Thanks.

謝謝。

Thank you. Our next question comes from the line of Ana Goshko with Bank of America.

謝謝。我們的下一個問題來自美國銀行的 Ana Goshko。

Hi, thanks very much. First, I wanted to clarify on the CapEx guidance range that you gave that includes incremental contributions into the flash JVs? Is that true?

嗨，非常感謝。首先，我想澄清一下您提供的資本支出指導範圍，其中包括對閃存合資企業的增量貢獻？真的嗎？

Yes, it does. That's our cash CapEx range that we provided.

是的，它確實。這是我們提供的現金資本支出範圍。

In the quarter, it looks like there was a $90 million contribution. What's the expectation on the SanDisk side for the CapEx at SanDisk proper? And, how much do you expect to contribute into the JV going forward?

在本季度，看起來有 9000 萬美元的貢獻。 SanDisk 方面對 SanDisk 本身的資本支出有何期望？而且，您希望未來為合資企業貢獻多少？

That would be implied in that 6% to 8%. Beyond that, we won't be providing specifics.

這將隱含在 6% 到 8% 中。除此之外，我們不會提供具體細節。

And then, secondly, I think the largest piece of the synergy case between the SanDisk-Western combination was the vertical integration on the NAND supply side and wanted to get an update on when you think you'll be able to start realizing that?

然後，其次，我認為 SanDisk-Western 組合之間最大的協同作用案例是 NAND 供應方面的垂直整合，並且想了解您認為何時能夠開始意識到這一點的最新情況？

I think as we stated we're going to do that through product life cycle adjustments so we are not going to retroactively go back to existing products shipping to customers. So, that's going to happen over the course of time, and really largely 18 months and beyond we'll start to see that take more effect.

我認為正如我們所說的那樣，我們將通過產品生命週期調整來做到這一點，因此我們不會追溯回到運送給客戶的現有產品。所以，這將隨著時間的推移而發生，而且實際上主要是 18 個月及以後，我們將開始看到它產生更大的影響。

Okay, and then this may be mundane, but I don't know if I caught a depreciation and amortization projection for this coming quarter?

好的，這可能很平常，但我不知道我是否對下一季度的折舊和攤銷進行了預測？

I don't believe that we provided one.

我不相信我們提供了一個。

Okay, can I get one?

好的，我可以要一個嗎？

No.

不。

Okay. Thank you then.

好的。那就謝謝了。

Thank you. Our next question comes from the line of Mark Miller with Benchmark.

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

Anything on the long-awaited transition to energy-assisted magnetic recording? Is that 2017, or that keeps on getting pushed out?

關於期待已久的向能量輔助磁記錄的過渡有什麼進展嗎？那是 2017 年，還是不斷被推出？

I would say that it's 2018-2019 kind of dynamic.

我會說這是 2018-2019 年的動態。

Okay. Thank you.

好的。謝謝。

Thank you. Our next question comes from the line of Vijay Rakesh with Mizuho.

謝謝。我們的下一個問題來自 Vijay Rakesh 與 Mizuho 的對話。

Yes, sorry about that. Just on the OpEx level, where do you see the long-term OpEx level? I know it's $875 million here, where do you see it longer term?

是的，對此感到抱歉。就運營支出水平而言，您如何看待長期運營支出水平？我知道這裡有 8.75 億美元，你認為它的長期價值在哪裡？

That's an additional item that we'll be providing more color on in December. We're still scrubbing through the details.

這是我們將在 12 月提供更多顏色的附加項目。我們仍在仔細檢查細節。

Okay, and then on the gross margin line. What are the puts and takes as you look out? What drives it? Where do you see upside coming from as you look out over the quarters here?

好的，然後在毛利率線上。當你注意時，看跌期權和看跌期權是什麼？是什麼驅動它？當你俯瞰這裡的宿舍時，你認為上行空間來自哪裡？

Well, that's a very general question. Again, we'll be providing more information in December in terms of our gross margin range. But, obviously, the puts and takes, it's going to be dependent upon the usual things -- what happens with mix, what happens with pricing, what happens with demand. Obviously, right now in terms of what Mike was alluding to, we've got a favorable supply-demand situation in terms of NAND. That's helping our margin profile from an overall perspective, and hard drive market is relatively stable, certainly from a demand perspective. But, as Mike alluded to, we continue to see some share-based pricing behavior in certain parts of the market. That's offsetting maybe some of the more positive things that we're seeing in terms of mix and demand on the hard drive side. So, various different puts and takes. But, on balance, we see at least in the near term an upward trajectory from 31% to 32% in terms of gross margin percentage.

嗯，這是一個非常籠統的問題。同樣，我們將在 12 月提供更多有關毛利率範圍的信息。但是，很明顯，賣出和賣出將取決於通常的事情——混合會發生什麼，定價會發生什麼，需求會發生什麼。顯然，就邁克所暗示的而言，現在我們在 NAND 方面的供需形勢良好。從整體角度來看，這有助於我們的利潤率，而且硬盤市場相對穩定，當然從需求的角度來看。但是，正如邁克所暗示的那樣，我們繼續在市場的某些部分看到一些基於股票的定價行為。這可能抵消了我們在硬盤驅動器方面的混合和需求方面看到的一些更積極的事情。因此，各種不同的投入和投入。但是，總的來說，我們至少在短期內看到毛利率從 31% 上升到 32%。

Got it. And, last question here on the Yen. I might have missed the first part of that, but were you mentioning the unrealized hedging gains in the Yen? Do you expect that to -- does that flow to the EPS line in the coming quarters? Or, how do you see that $35 million and $17 million in Q1 and Q2?

知道了。最後一個關於日元的問題。我可能錯過了第一部分，但你是在提到日元未實現的對沖收益嗎？您是否預計 - 這會在未來幾個季度流入 EPS 生產線嗎？或者，您如何看待第一季度和第二季度的 3500 萬美元和 1700 萬美元？

First of all, let me clarify. That is just purchase accounting. So, it will not flow through the P&L for Q1 and Q2 and beyond for the instruments that we had at the time of the closing of the transaction. So, all our new hedging instruments will flow through in the customary manner. Now, we still get the cash benefit of those instruments, but you will see effectively what would otherwise have been a decrease in the next few quarters as a result of that purchase accounting requirement.

首先，讓我澄清一下。那隻是採購會計。因此，對於我們在交易結束時擁有的工具，它不會流經第一季度和第二季度及以後的損益表。因此，我們所有的新對沖工具都將以慣常方式流通。現在，我們仍然從這些工具中獲得現金收益，但你會有效地看到，由於採購會計要求，未來幾個季度本來會減少的。

Got it. Excellent, thank you.

知道了。非常好，謝謝。

Sure.

當然。

Thank you. Our next question comes from the line of David Phipps with Citigroup.

謝謝。我們的下一個問題來自花旗集團的 David Phipps。

Hi, thanks for taking my question. Can I ask you about the operating expenses in the fourth quarter because it's combined those were about $484 million. In the coming quarter, you've guided to $875 million. So, what were the unusual charges? Or, if any within those two line items?

嗨，謝謝你提出我的問題。我能問一下第四季度的運營費用嗎，因為它們加起來約為 4.84 億美元。在下個季度，您指導了 8.75 億美元。那麼，不尋常的指控是什麼？或者，如果這兩個項目中有的話？

Nothing unusual, and again the complexity with the guide is you compare a full quarter with a quarter not including obviously SanDisk for the full period. And, as we indicated earlier, the incentive compensation will be fully funded which wasn't the case before. So, the reconciliation is a bit tricky but nothing out of the ordinary.

沒有什麼不尋常的，而且指南的複雜性是您將整個季度與明顯不包括整個期間的 SanDisk 的季度進行比較。而且，正如我們之前指出的那樣，激勵補償將得到全額資助，這在以前並非如此。所以，和解有點棘手，但沒有什麼不尋常的。

So, the current quarter was [$484] million of Op Expenses including $70 million of stock comp, and so the next quarter will be $875 million and I guess we'll have a lower component of stock comp?

因此，當前季度的運營費用為 [4.84 億美元]，其中包括 7000 萬美元的股票補償，因此下一個季度將是 8.75 億美元，我想我們的股票補償部分會更低嗎？

So, stock-based compensation is excluded from all of the numbers we have communicated.

因此，基於股票的薪酬不包括在我們傳達的所有數字中。

It's included. It will have a full quarter so it will actually be higher stock comp. So, we'll repeat the answer. The primary difference between FQ4 and FQ1 OpEx is having a full quarter of SanDisk OpEx plus a higher level of incentive compensation funding, and that's the primary difference.

它包括在內。它將有一個完整的季度，因此它實際上將是更高的股票補償。所以，我們將重複答案。 FQ4 和 FQ1 OpEx 之間的主要區別在於擁有整整四分之一的 SanDisk OpEx 加上更高水平的激勵補償資金，這是主要區別。

But, wouldn't that be -- so that should be a bigger number then a smaller number? What am I missing?

但是，那不是——所以應該是一個更大的數字然後是一個更小的數字？我錯過了什麼？

We'll have to take this offline.

我們必須將其下線。

Okay, thank you.

好的謝謝。

Thank you. Our next question is from Nehal Chokshi with Maxim Group.

謝謝。我們的下一個問題來自 Maxim Group 的 Nehal Chokshi。

Thank you. The exabytes shipped, does that include the NAND flash component now?

謝謝。出貨的艾字節，現在是否包括 NAND 閃存組件？

Repeat that, I'm sorry?

重複一遍，對不起？

The exabytes shipped, the 66.1 in the June quarter? Does that include the NAND flash drive shipments as well?

出貨的艾字節，6 月季度的 66.1？這是否也包括 NAND 閃存驅動器的出貨量？

Yes.

是的。

It does, okay. So, there was an acceleration in a year-over-year growth so is that primarily attributable to the inclusion of NAND flash?

確實如此，好吧。那麼，同比增長加速，這主要歸因於 NAND 閃存的加入嗎？

No, it would be primarily driven by capacity Enterprise shipments.

不，這主要是由企業出貨量驅動的。

Got it, okay. And then, my follow-up is that you had about $100 million upside relative to the original midpoint guidance. And, given the ASP uptick, which I think was due to the mix shift of the capacity Enterprise, it sounds like it was largely capacity Enterprise that drove all this. And, could you give some additional color as far as where that demand from capacity Enterprise was? It sounds like it's hyperscale, but I just wanted to make sure it's just hyperscale and there's no upside from the Enterprise [storage] going into it as well.

知道了，好的。然後，我的後續行動是，相對於最初的中點指導，你有大約 1 億美元的上漲空間。而且，考慮到 ASP 的上漲，我認為這是由於容量企業的混合轉變，這聽起來主要是容量企業推動了這一切。而且，您能否就容量 Enterprise 的需求給出一些額外的顏色？這聽起來像是超大規模的，但我只是想確保它只是超大規模的，而且企業 [存儲] 也沒有任何好處。

Just to make an overall comment. Because remember, we provided guidance prior to the acquisition of the SanDisk -- which SanDisk -- which was obviously legacy WDC. Our financial results for FQ4 for legacy WDC came in largely consistent with our expectations. So, primarily the upside that we saw was driven by -- if you want to call it legacy SanDisk or our new flash-based business over that [stub] period.

只是做一個整體的評論。因為請記住，我們在收購 SanDisk 之前提供了指導 - SanDisk - 這顯然是遺留的 WDC。我們對遺留 WDC 的 FQ4 財務結果基本符合我們的預期。因此，我們看到的主要優勢是由——如果你想稱它為傳統的 SanDisk 或我們在那個 [存根] 時期的新的基於閃存的業務。

I see. Thank you.

我懂了。謝謝。

Sure, so I want to thank you for joining us today. In closing, I want to thank Olivier Leonetti for his contributions as our Chief Financial Officer over the last two years. We greatly appreciate Olivier's dedication during this transformative time and wish him the best in the future. We look forward to staying in touch with our investors and the Analyst community in the weeks and months ahead. Thank you.

當然，我要感謝你今天加入我們。最後，我要感謝 Olivier Leonetti 在過去兩年作為我們的首席財務官所做的貢獻。我們非常感謝 Olivier 在這個變革時期的奉獻精神，並祝愿他未來一切順利。我們期待在未來幾周和幾個月內與我們的投資者和分析師社區保持聯繫。謝謝。

That 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。