Wolfspeed Inc (WOLF) 2017 Q2 法說會逐字稿

Good day ladies and gentlemen.

女士們先生們，美好的一天。

Welcome to Cree's second-quarter fiscal year 2017 earnings call and webcast.

歡迎來到 Cree 2017 財年第二季度財報電話會議和網絡直播。

At this time, all participants are in a listen-only mode.

此時，所有參與者都處於只聽模式。

Later, we will conduct a question-and-answer session and instructions will follow at that time.

稍後，我們將進行問答環節，屆時將按照說明進行。

(Operator Instructions).

（操作員說明）。

As a reminder, this conference call is being recorded.

提醒一下，正在錄製此電話會議。

I would now like to turn the conference call over to Raiford Garrabrant, Director of Investor Relations.

我現在想將電話會議轉交給投資者關係總監 Raiford Garrabrant。

Please go ahead.

請繼續。

Thank you Abigail, and good afternoon.

謝謝阿比蓋爾，下午好。

Welcome to Cree's second-quarter fiscal 2017 conference call.

歡迎參加 Cree 2017 財年第二季度電話會議。

Today, Chuck Swoboda, our Chairman and CEO, and Mike McDevitt, our CFO, will report on our results for the second quarter of fiscal year 2017.

今天，我們的董事長兼首席執行官 Chuck Swoboda 和我們的首席財務官 Mike McDevitt 將報告我們 2017 財年第二季度的業績。

Please note that we will be presenting non-GAAP financial results during today's call, and a reconciliation to the corresponding GAAP measures is in our press release and posted in the Investor Relations section of our website.

請注意，我們將在今天的電話會議中展示非公認會計原則財務結果，我們的新聞稿中對相應的公認會計原則措施進行了對賬，並發佈在我們網站的投資者關係部分。

Today's presentations include forward-looking statements about our business outlook, and we may make other forward-looking statements during the call.

今天的演示文稿包括關於我們業務前景的前瞻性陳述，我們可能會在電話會議期間發表其他前瞻性陳述。

Such forward-looking statements are subject to numerous risks and uncertainties.

此類前瞻性陳述受到眾多風險和不確定性的影響。

Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially.

我們今天的新聞稿和新聞稿中提到的 SEC 文件都提到了可能導致實際結果出現重大差異的重要因素。

Also, we would like to note that we will be limiting our comments regarding Cree's second quarter and fiscal year 2017 to a discussion of the information included in our press release.

此外，我們想指出，我們將對 Cree 的第二季度和 2017 財年的評論僅限於對我們新聞稿中包含的信息的討論。

We will not be able to answer any questions that would involve providing additional financial information about the quarter beyond the comments made in the prepared remarks.

除了準備好的評論中的評論之外，我們將無法回答任何涉及提供有關該季度的額外財務信息的問題。

Consistent with our previous conference calls, we are requesting that only sell-side analysts ask questions during the Q&A session.

與我們之前的電話會議一致，我們要求只有賣方分析師才能在問答環節提問。

Also, since we plan to complete the call in the allotted time of one hour, we ask that analysts limit themselves to one question and one follow-up.

此外，由於我們計劃在規定的一小時內完成電話會議，我們要求分析師將自己限制在一個問題和一個後續行動上。

If you have additional questions, please contact us after the call.

如果您還有其他問題，請在來電後與我們聯繫。

Now, I would like to turn the call over to Chuck.

現在，我想把電話轉給 Chuck。

Thank you Raiford.

謝謝雷福德。

We delivered very good results in fiscal Q2 with total combined Company revenue of $401 million and non-GAAP earnings of $0.30 per share.

我們在第二財季取得了非常好的業績，公司總收入為 4.01 億美元，非公認會計原則每股收益為 0.30 美元。

These results are significantly above our targeted range due to the settlement of our patent infringement and false advertising lawsuit with Feit Electric, which was partially offset by an increase in our lighting reserves, which Mike will explain further in his remarks.

由於我們與 Feit Electric 解決了我們的專利侵權和虛假廣告訴訟，這些結果大大高於我們的目標範圍，這部分被我們照明儲備的增加所抵消，Mike 將在他的講話中進一步解釋。

If you exclude the effect of these two items, our second-quarter results would have been in the middle of our targeted range for both revenue and earnings.

如果排除這兩項的影響，我們的第二季度業績將在我們的收入和收益目標範圍的中間。

Regarding the Feit settlement, Cree has invested over $1.2 billion in R&D over the past 10 years to create fundamental technology that has enabled the LED lightning revolution, and it is our obligation to protect our intellectual property.

關於 Feit 和解，Cree 在過去 10 年中投入了超過 12 億美元的研發資金，以創造促成 LED 閃電革命的基礎技術，保護我們的知識產權是我們的義務。

This settlement and license agreement recognizes the value of our pioneering technology and ensures we are properly compensated while protecting consumers and Cree shareholders.

該和解和許可協議認可了我們開創性技術的價值，並確保我們在保護消費者和 Cree 股東的同時獲得適當的補償。

Our licensing program now includes over 20 licensing partners.

我們的許可計劃現在包括 20 多個許可合作夥伴。

For continuing operations, the LED business delivered solid revenue and margins that were in line with our targets for the quarter.

對於持續運營，LED 業務實現了穩健的收入和利潤率，符合我們本季度的目標。

Core lighting revenue and margins were also in line with our targets as commercial lighting revenue growth offset lower consumer revenue due to lower than expected seasonal retail sales growth.

核心照明收入和利潤率也符合我們的目標，因為商業照明收入增長抵消了由於季節性零售增長低於預期而導致的消費者收入下降。

We made progress improving margins in both our commercial and consumer lighting product lines in the quarter.

我們在本季度的商業和消費照明產品線都取得了進步，提高了利潤率。

Customer service levels remain good and lighting project quoting activity continued to improve, which is why we are targeting better than seasonal performance in Q3.

客戶服務水平保持良好，照明項目報價活動持續改善，這就是我們在第三季度的目標是優於季節性表現的原因。

We continue to make progress with our transition to Cree 3.0 and a more focused LED lightning technology company by improving fundamentals in our commercial and consumer lighting businesses.

我們通過改善商業和消費照明業務的基本面，繼續在向 Cree 3.0 和更專注的 LED 閃電技術公司的過渡方面取得進展。

This, combined with solid execution in our LED business, puts us in a good position to grow future revenue and profits.

這與我們 LED 業務的穩健執行相結合，使我們處於增加未來收入和利潤的有利位置。

While fiscal Q3 is a seasonally slower quarter for LEDs and the outdoor lighting business, we believe we are on the right track in building a solid foundation to support a multiyear effort to build a larger and more valuable company.

雖然第三財季對於 LED 和戶外照明業務來說是一個季節性放緩的季度，但我們相信我們正走在正確的軌道上，為建立一個更大、更有價值的公司的多年努力奠定堅實的基礎。

I'll now turn the call over to Mike McDevitt to review our second-quarter financial results in more detail as well as our targets for the third quarter of fiscal 2017.

我現在將電話轉給 Mike McDevitt，以更詳細地審查我們第二季度的財務業績以及我們對 2017 財年第三季度的目標。

Thank you Chuck.

謝謝查克。

I will be providing commentary on our financial statements on a non-GAAP basis, which is consistent with how management measures Cree's results internally.

我將在非公認會計原則的基礎上對我們的財務報表進行評論，這與管理層如何在內部衡量 Cree 的業績是一致的。

However, non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies.

但是，非公認會計原則的結果不符合公認會計原則，可能無法與其他公司提供的非公認會計原則信息相比較。

Non-GAAP information should be considered a supplement to and not a substitute for financial statements prepared in accordance with GAAP.

非公認會計原則信息應被視為對根據公認會計原則編制的財務報表的補充而非替代。

A reconciliation of non-GAAP information to the corresponding GAAP measures for all periods mentioned on this call is posted on our website or provided in our press release, along with a historical summary of other key metrics.

本次電話會議中提到的所有時期的非公認會計原則信息與相應公認會計原則措施的對賬已發佈在我們的網站上或在我們的新聞稿中提供，以及其他關鍵指標的歷史摘要。

As a reminder, we previously announced an agreement to sell our Wolfspeed business to Infineon.

提醒一下，我們之前宣布了一項將 Wolfspeed 業務出售給英飛凌的協議。

We are reporting Wolfspeed as discontinued operations in our financial statements.

我們在財務報表中將 Wolfspeed 報告為已終止的業務。

As a result, I will be providing commentary on our results for our overall combined business, our continuing operations, and our discontinued operations.

因此，我將就我們的整體合併業務、我們的持續經營和終止經營的業績發表評論。

For the second quarter of fiscal 2017, combined Company revenue was $401 million and non-GAAP earnings were $30 million, or $0.30 per share, which were significantly above our targeted ranges.

2017 財年第二季度，公司總收入為 4.01 億美元，非公認會計準則收益為 3000 萬美元，即每股 0.30 美元，大大高於我們的目標範圍。

For continuing operations, revenue was $347 million and non-GAAP earnings were $20 million, or $0.20 per share, which was also well above our targeted ranges.

對於持續經營，收入為 3.47 億美元，非公認會計準則收益為 2000 萬美元，即每股 0.20 美元，這也遠高於我們的目標範圍。

Our combined and continuing operation results included the benefit from the Feit legal settlement, which was partially offset by additional lightning reserves.

我們的綜合和持續經營成果包括來自 Feit 法律和解的收益，該收益被額外的閃電儲備部分抵消。

The additional reserves related primarily to third-party supply drivers for commercial lighting products that were identified as defective within the quarter.

額外儲備主要與本季度被確定為有缺陷的商業照明產品的第三方供應驅動因素有關。

Excluding the impact of the Feit settlement and the additional lightning reserves, our combined and continuing operations non-GAAP results would've been in the middle of our targeted ranges.

排除 Feit 和解和額外閃電儲備的影響，我們的合併和持續運營非 GAAP 業績將處於我們目標範圍的中間。

For discontinued operations, revenue was $54 million and non-GAAP earnings were $10 million, or $0.10 per share, which were slightly above the upper end of our targeted ranges.

對於已終止的業務，收入為 5400 萬美元，非公認會計準則收益為 1000 萬美元，即每股 0.10 美元，略高於我們目標範圍的上限。

Our combined and discontinued operations include a $0.04 non-GAAP EPS benefit due to suspending depreciation and amortization on all Wolfspeed long-lived assets as required under GAAP for assets being held for sale.

我們的合併和已終止業務包括 0.04 美元的非 GAAP 每股收益，這是由於根據 GAAP 對持有待售資產的要求暫停所有 Wolfspeed 長期資產的折舊和攤銷。

This benefit was built into our targets for the quarter.

這一收益已納入我們本季度的目標中。

The non-GAAP earnings above exclude non-cash stock-based compensation, acquired intangibles amortization, transaction costs related to the pending sale to Infineon, and other items.

上述非公認會計原則收益不包括基於非現金股票的薪酬、收購的無形資產攤銷、與英飛凌待定出售相關的交易成本以及其他項目。

For combined operations, the excluded amount is $24 million net of tax, or $0.24 per share, which was $3 million net tax higher than targeted due to the decline in the valuation of our Lextar investment in the quarter.

對於合併業務，排除金額為稅後淨額 2400 萬美元，即每股 0.24 美元，由於本季度我們的 Lextar 投資估值下降，淨稅額比目標高 300 萬美元。

Fiscal 2017 second-quarter continuing operations revenue and non-GAAP gross profit for our reportable segments were as follows.

我們可報告部門的 2017 財年第二季度持續經營收入和非公認會計準則毛利潤如下。

Lighting products revenue increased 14% sequentially to $209 million, which was significantly above our targeted range.

照明產品收入環比增長 14% 至 2.09 億美元，遠高於我們的目標範圍。

Gross profit was also well above our targeted range at $75 million for a 35.8% gross margin, a 900 basis point sequential increase.

毛利潤也遠高於我們 7500 萬美元的目標範圍，毛利率為 35.8%，環比增長 900 個基點。

These results include the benefit from our confidential litigation settlement partially offset by the additional lightning reserves.

這些結果包括我們的保密訴訟和解所帶來的好處，部分被額外的閃電儲備所抵消。

Correlating revenue and gross margins were in line with our targets, and gross margin improved from Q1 for both commercial and consumer.

相關收入和毛利率符合我們的目標，商業和消費者的毛利率均較第一季度有所改善。

LED products revenue was $138 million and gross profit was $40 million, or 29.2% for the quarter, all of which were in line with our targets for the quarter.

本季度 LED 產品收入為 1.38 億美元，毛利潤為 4,000 萬美元，或 29.2%，均符合我們本季度的目標。

Non-allocated costs totaled $2 million for the second quarter of fiscal 2017 and are included to reconcile to our $113 million non-GAAP gross profit for a 32.7% gross margin.

2017 財年第二季度的非分配成本總計 200 萬美元，包括在內以與我們 1.13 億美元的非 GAAP 毛利潤相協調，毛利率為 32.7%。

Continuing operations non-GAAP operating expenses for Q2 were $88 million and above our targets for the quarter, due primarily to contingent legal costs associated with the settlement of the Feit case.

第二季度的持續運營非公認會計原則運營費用為 8800 萬美元，高於我們本季度的目標，這主要是由於與 Feit 案件和解相關的或有法律費用。

Excluding the contingent legal costs, operating expenses were in line with our targets.

剔除或有法律費用，運營費用符合我們的目標。

Our non-GAAP operating income was $25 million, which was significantly above our targeted range.

我們的非公認會計原則營業收入為 2500 萬美元，大大高於我們的目標範圍。

We ended the quarter with $421 million in cash and investments net of line of credit borrowings, a $19 million increase from Q1.

本季度末，扣除信貸額度借款後，我們的現金和投資淨額為 4.21 億美元，比第一季度增加了 1900 萬美元。

At the end of the quarter, we had $170 million outstanding on our line of credit.

在本季度末，我們的信用額度有 1.7 億美元的未償餘額。

For the quarter, we generated $102 million of cash from combined operations and spent $20 million for combined capital expenditures, which yielded free cash flow of $82 million.

本季度，我們從合併運營中產生了 1.02 億美元的現金，並花費了 2000 萬美元用於合併資本支出，產生了 8200 萬美元的自由現金流。

The $20 million spent on combined capital expenditures includes $10 million spent for Wolfspeed.

用於綜合資本支出的 2000 萬美元包括用於 Wolfspeed 的 1000 萬美元。

During Q2, we spent $63 million to repurchase 2.7 million Cree shares.

在第二季度，我們斥資 6300 萬美元回購了 270 萬股 Cree 股票。

Fiscal 2017 year-to-date, we have repurchased 4.2 million Cree shares for $98 million.

2017 財年年初至今，我們以 9800 萬美元回購了 420 萬股 Cree 股票。

For fiscal 2017, we continue to target lighting and LED capital spending of $55 million, plus or minus, to support our continuing operations.

在 2017 財年，我們繼續將照明和 LED 資本支出目標定在 5500 萬美元上下，以支持我們的持續運營。

Until the sale of Wolfspeed is completed, we will continue to invest capital to support the Wolfspeed business.

在 Wolfspeed 的出售完成之前，我們將繼續投入資金支持 Wolfspeed 業務。

We target Wolfspeed capital spending to be $15 million, plus or minus, for Q3, which is in line with our previous guidance.

我們將第三季度 Wolfspeed 的資本支出目標定為 1500 萬美元，上下浮動，這與我們之前的指導一致。

Overall, we now target fiscal 2017 free cash flow of $120 million, plus or minus, which may change depending on the timing of the Wolfspeed sale.

總體而言，我們現在的目標是 2017 財年的自由現金流為 1.2 億美元，上下浮動，這可能會根據 Wolfspeed 出售的時間而發生變化。

For continued operations, day sales outstanding decreased nine days from September to 32 days at the end of December.

對於持續運營，未償日銷售額從 9 月減少 9 天至 12 月底的 32 天。

Inventory days on hand decreased five days from September to 107 days at the end of December.

庫存天數從 9 月減少 5 天至 12 月底的 107 天。

The inventory decrease primarily relates to our targeted reductions in commercial lighting finished goods.

庫存減少主要與我們對商業照明成品的目標減少有關。

We forecast being in line with our 90 days, plus or minus, inventory days target within the next several quarters.

我們預測在接下來的幾個季度內將符合我們的 90 天（正負）庫存天數目標。

Q3 total Company backlog is tracking behind this point last quarter, but in line with typical seasonal trends.

第三季度公司總積壓在上個季度落後於這一點，但與典型的季節性趨勢一致。

We target combined Q3 Company revenue, which includes both continuing and discontinued operations in the range of $340 million to $370 million.

我們的目標是合併第三季度公司收入，其中包括 3.4 億美元至 3.7 億美元的持續和終止運營。

We target combined non-GAAP net income for Q3 in a range of $10 million to $18 million, or $0.10 to $0.18 per diluted share.

我們將第三季度的非公認會計原則合併淨收入目標在 1000 萬美元至 1800 萬美元之間，或每股攤薄收益 0.10 美元至 0.18 美元。

For continuing operations, we target Q3 revenue in a range of $285 million to $315 million.

對於持續運營，我們將第三季度的收入目標定在 2.85 億美元至 3.15 億美元之間。

We target core lighting to be down slightly sequentially as growth in new products partially offsets normal seasonality.

由於新產品的增長部分抵消了正常的季節性，我們的目標是核心照明環比略有下降。

We target our LED business to be 10% lower, plus or minus, sequentially, which is slightly more than a typical seasonal decline due to the holiday timing impact.

我們的目標是我們的 LED 業務環比下降 10%（正負），這略高於由於假期時間影響而導致的典型季節性下降。

We target incremental improvement in Q3 core gross margins from continuing operations driven by lighting, which we anticipate will be partially offset by lower LED margins related primarily to higher (technical difficulty) associated with new products being ramped up and lower volumes in the quarter.

我們的目標是通過照明驅動的持續運營來逐步提高第三季度的核心毛利率，我們預計這將被 LED 利潤率下降部分抵消，這主要與本季度新產品增加和銷量下降相關的更高（技術難度）有關。

We are targeting Q3 operating expenses from continuing operations to be $7 million lower than Q2 due to lower IP litigation spending and reduced brand promotional spending, which are partially offset by higher R&D for new LED product development.

由於知識產權訴訟支出減少和品牌推廣支出減少，我們將持續運營的第三季度運營費用定為比第二季度低 700 萬美元，這部分被新 LED 產品開發的研發增加所抵消。

As mentioned last quarter, our continuing operations operating expenses include approximately $1.5 million of shared service costs that also support the Wolfspeed operations.

如上個季度所述，我們的持續運營運營費用包括大約 150 萬美元的共享服務成本，這些費用也支持 Wolfspeed 運營。

We will receive reimbursement for most of these costs for a period of time after closing under a transitional services agreement with Infineon.

根據與英飛凌的過渡服務協議，我們將在完成交易後的一段時間內獲得大部分這些費用的報銷。

We target Q3 non-GAAP net income from continuing operations to be between $1 million to $9 million, or $0.01 to $0.09 per diluted share.

我們將第三季度非公認會計原則的持續經營淨收入目標定在 100 萬美元至 900 萬美元之間，或每股攤薄收益 0.01 美元至 0.09 美元。

Our non-GAAP EPS target excludes acquired intangibles amortization, non-cash stock-based compensation, and other items.

我們的非公認會計原則每股收益目標不包括收購的無形資產攤銷、基於非現金股票的薪酬和其他項目。

For discontinued operations, we target Q3 revenue from Wolfspeed to be $55 million, plus or minus, which is similar to Q2.

對於已停產的業務，我們將 Wolfspeed 第三季度的收入目標定為 5500 萬美元，上下浮動，與第二季度相似。

We target Wolfspeed Q3 non-GAAP net income to be $9 million, plus or minus.

我們的目標 Wolfspeed 第三季度非公認會計原則淨收入為 900 萬美元，上下浮動。

This non-GAAP net income target includes a $4 million net of tax, or $0.04, benefit from the full impact, not including any depreciation or amortization expense from long-lived assets.

這個非公認會計原則的淨收入目標包括 400 萬美元的稅後淨額，或 0.04 美元，從全面影響中受益，不包括長期資產的任何折舊或攤銷費用。

Our Wolfspeed non-GAAP net income targets exclude acquired intangibles amortization, non-cash stock-based compensation, and transaction costs related to the pending sale to Infineon.

我們的 Wolfspeed 非 GAAP 淨收入目標不包括收購的無形資產攤銷、基於非現金股票的補償以及與未決出售給英飛凌相關的交易成本。

Our Q3 targets are based on a number of factors that could vary, including overall demand, product mix, factory execution, and a competitive environment.

我們的第三季度目標基於許多可能變化的因素，包括整體需求、產品組合、工廠執行和競爭環境。

I will now turn the discussion back to Chuck.

我現在將討論轉回到查克身上。

Thanks Mike.

謝謝邁克。

We are focused on the following goals to continue to build a more valuable LED lighting technology company.

我們專注於以下目標，繼續打造更有價值的 LED 照明技術公司。

First, we are working to gain the necessary government approvals to complete the sale of Wolfspeed to Infineon.

首先，我們正在努力獲得必要的政府批准，以完成將 Wolfspeed 出售給英飛凌的交易。

The process is progressing, and we currently target closing in our fiscal Q3, although we recognize that the process can be unpredictable.

該過程正在進行中，我們目前的目標是在第三財季結束，儘管我們認識到該過程可能無法預測。

Our second priority is driving topline growth for our LED lighting business.

我們的第二個優先事項是推動我們的 LED 照明業務的收入增長。

We made progress in fiscal Q2 as commercial lighting revenue increased several percent sequentially due to increased demand across several product categories, including increased demand for our SmartCast product line.

由於多個產品類別的需求增加，包括對我們的 SmartCast 產品線的需求增加，我們在第二財季取得了進展，商業照明收入環比增長了幾個百分點。

Smart lighting is a small but growing part of our overall lighting sales, and an area that we target for growth over the next several years as we expand the breadth and capability of our product offering.

智能照明是我們整體照明銷售的一小部分，但在不斷增長，隨著我們擴大產品供應的廣度和能力，我們在未來幾年的目標是增長的領域。

Although consumer lighting revenue declined in Q2, margins improved as we met our overall lighting targets for the quarter.

儘管第二季度消費照明收入下降，但隨著我們實現本季度的整體照明目標，利潤率有所提高。

Consumer feedback on our new LED bulbs has been positive and our premium strategy has helped us improve profitability in this product line while delivering a better return on our customers' investment in better light.

消費者對我們新的 LED 燈泡的反饋是積極的，我們的優質戰略幫助我們提高了該產品線的盈利能力，同時為客戶對更好照明的投資提供了更好的回報。

While our products are priced higher than the competition, they perform better and last more than twice as long, which is the point of switching to LED in the first place and drives our overall brand position.

雖然我們的產品價格高於競爭對手，但它們的性能更好，使用壽命是原來的兩倍多，這是首先轉向 LED 的關鍵，並推動了我們的整體品牌地位。

Overall, for fiscal Q3, we target growth in new commercial lighting products to partially offset seasonal slowness related to both weather and the holidays.

總體而言，在第三財季，我們的目標是新商業照明產品的增長，以部分抵消與天氣和假期相關的季節性放緩。

This, combined with the consumer revenue in a similar range, results in overall correlating revenue targeted to be down a few percent from Q2.

這與類似範圍內的消費者收入相結合，導致整體相關收入目標比第二季度下降幾個百分點。

We continue to evaluate lighting growth opportunities through potential M&A.

我們繼續通過潛在的併購評估照明增長機會。

We are early in the process and taking a very measured approach as we look for the right business to complement our current product portfolio and enhance our channel relationships.

我們處於流程的早期階段，並採取了非常謹慎的方法，因為我們正在尋找合適的業務來補充我們當前的產品組合併加強我們的渠道關係。

We have the balance sheet to act when the right opportunity is available and we have the flexibility to be patient.

當有合適的機會時，我們有足夠的資產負債表採取行動，並且我們有足夠的靈活性來保持耐心。

The LED business performed well in Q2 and is targeted to be seasonally lower in fiscal Q3 due to two major holidays in the quarter.

LED 業務在第二季度表現良好，由於該季度有兩個主要假期，預計第三財季將出現季節性下降。

The market remains very competitive and we continue to focus our technology on the applications where we can add the most value to the customer.

市場競爭仍然非常激烈，我們繼續將我們的技術重點放在可以為客戶增加最大價值的應用上。

We continue to work on some mid- to longer-term programs that are targeted to expand the LED business in both existing and new applications.

我們繼續致力於一些中長期計劃，旨在擴大現有和新應用中的 LED 業務。

One of the new applications that we have been pursuing is automotive lighting, where we believe our high power LED technology can enable emerging exterior vehicle applications.

我們一直在追求的新應用之一是汽車照明，我們相信我們的高功率 LED 技術可以實現新興的外部車輛應用。

We have been an LED chip supplier to automotive for two decades and target releasing our first new automotive qualified XLamp LED components by the end of fiscal 2017.

二十年來，我們一直是汽車行業的 LED 芯片供應商，我們的目標是在 2017 財年末發布我們第一款符合汽車標準的新型 XLamp LED 組件。

Our third priority is to improve operating margins.

我們的第三個優先事項是提高營業利潤率。

We target increased lighting gross margins to be the primary driver to improve operating margins over time.

我們的目標是提高照明毛利率成為隨著時間推移提高營業利潤率的主要驅動力。

We made progress again in Q2, and we target the combination of higher value new products and lower costs to drive improved core lighting gross margins in Q3.

我們在第二季度再次取得進展，我們的目標是結合更高價值的新產品和更低的成本來推動第三季度核心照明毛利率的提高。

LED margins are targeted to be slightly lower due to seasonally lower volumes and higher costs associated with the ramp up of new products.

由於季節性產量下降和與新產品增加相關的成本上升，LED 利潤率目標略低。

We target Q3 operating expenses from continuing operations to decline due primarily to lower legal and brand marketing expenses.

我們預計第三季度持續運營的運營費用將下降，這主要是由於法律和品牌營銷費用下降。

To enable our revenue and profit goals, we must continue to innovate in all business segments to differentiate our products in the market while also improving the customer experience and service levels across the Company.

為了實現我們的收入和利潤目標，我們必須繼續在所有業務領域進行創新，以使我們的產品在市場上脫穎而出，同時提高整個公司的客戶體驗和服務水平。

We made progress in Q2 as we announced expanded lighting product offerings and improved performance in our LS surface ambient product family, our IG parking luminaires, and our Essentia by Cree family.

我們在第二季度取得了進展，因為我們宣布擴大照明產品供應並提高我們的 LS 表面環境產品系列、我們的 IG 停車燈具和 Essentia by Cree 系列的性能。

In LEDs, we released the industry's most efficient horticulture LEDs and our new XHP 50.2 LED, which delivers the highest lumen density in its class.

在 LED 方面，我們發布了業界最高效的園藝 LED 和我們的新型 XHP 50.2 LED，它提供了同類產品中最高的流明密度。

We remain focused on further improving our ability to deliver innovative products that exceed customer expectations in terms of performance, value and quality as we strive to set new standards for LED lighting.

在我們努力為 LED 照明設定新標準的同時，我們將繼續專注於進一步提高我們提供在性能、價值和質量方面超出客戶期望的創新產品的能力。

As we begin the new calendar year, we still have some work to do to complete the sale of our Wolfspeed business.

在我們開始新的日曆年之際，我們仍有一些工作要做，以完成 Wolfspeed 業務的出售。

We've made progress in lighting, and LEDs continues to execute well to our plan.

我們在照明方面取得了進展，LED 繼續很好地執行我們的計劃。

Our balance sheet is in good position to support our targeted growth plans, and closing Wolfspeed will further strengthen our ability to fund share repurchases and pursue inorganic lighting growth in the medium to longer term.

我們的資產負債表能夠很好地支持我們的目標增長計劃，關閉 Wolfspeed 將進一步加強我們為股票回購提供資金的能力，並在中長期內追求無機照明增長。

The fundamentals in our business have improved over the last several quarters, and we see emerging opportunities to grow our LED business in the mid- to longer-term by addressing new markets like automotive exterior lighting.

我們業務的基本面在過去幾個季度有所改善，我們看到了通過應對汽車外部照明等新市場在中長期發展我們的 LED 業務的新機會。

We remain focused on building a larger and more valuable LED lighting technology company by bringing better light to our customers, light that works better and lasts longer, paying for itself every day, light that is smart enough to not only improve the lighting environment but it becomes an integral part of enabling smart buildings, thereby expanding the market and channel opportunity for Cree.

我們仍然專注於打造一家更大、更有價值的 LED 照明技術公司，為我們的客戶帶來更好的光，更好地工作和更持久的光，每天為自己付出代價，智能的光不僅可以改善照明環境，而且成為實現智能建築不可或缺的一部分，從而擴大了 Cree 的市場和渠道機會。

To put it simply, we are committed to providing our customers with the best light and the best value in LED lighting.

簡而言之，我們致力於為我們的客戶提供最好的燈光和最好的 LED 照明價值。

We will now take analyst questions.

我們現在將回答分析師的問題。

(Operator Instructions).

（操作員說明）。

John Quealy, Canaccord Genuity.

約翰奎利，Canaccord Genuity。

Good afternoon folks.

各位下午好。

The first question, in terms -- please clarify if I misheard, but in terms of lighting and market demand, can you characterize that again for us?

第一個問題，如果我聽錯了，請澄清一下，但就照明和市場需求而言，您能否再次為我們描述一下？

Was it fine throughout the quarter?

整個季度都還好嗎？

What are you seeing now?

你現在看到了什麼？

And then I have a quick follow-up.

然後我有一個快速跟進。

Thanks.

謝謝。

I would say that our lighting -- I'm assuming you're talking about commercial lighting.

我會說我們的照明——我假設你在談論商業照明。

So, commercial lighting (multiple speakers) market demand was as expected in the quarter, kind of followed the normal trend.

因此，本季度商業照明（多揚聲器）市場需求符合預期，有點遵循正常趨勢。

I think keep in mind our business is probably -- we are, as we improve execution, we are probably seeing the benefit of some of the things we control internally, not necessarily just what's going on in the market.

我認為請記住，我們的業務可能是——我們是，隨著我們提高執行力，我們可能會看到我們內部控制的一些事情的好處，而不僅僅是市場上正在發生的事情。

So, our business was kind of as expected, and then that offset, partially offset, what was going on in the consumer lighting business, which was a little lower, but, net result, the overall lighting numbers came in about as expected.

因此，我們的業務有點像預期的那樣，然後抵消，部分抵消，消費照明業務的情況有所下降，但最終結果是，整體照明數字大致符合預期。

Okay.

好的。

Thanks Chuck.

謝謝查克。

My follow-up actually leads into the op expenses.

我的跟進實際上導致了運營費用。

So, Q3 lower by $7 million in SG&A and you talked about lower brand spending and obviously lower litigation costs.

因此，第三季度的 SG&A 減少了 700 萬美元，您談到了品牌支出降低和訴訟成本明顯降低。

Can you talk about that lower brand spending?

你能談談較低的品牌支出嗎？

Is the residential retail lighting hitting metrics that you want it to, and is that a run rate that we should think about for the rest of the year?

住宅零售照明是否達到了您想要的指標，這是我們應該在今年餘下時間考慮的運行率嗎？

Thanks guys.

多謝你們。

Yes, so, the way to think about brand spend is we have an investment cycle that's typically in the fall, so we launched a new series of bulbs.

是的，所以，考慮品牌支出的方式是我們有一個通常在秋季的投資週期，所以我們推出了一系列新的燈泡。

We typically accompany that launch with an investment in brand spend to kind of get the new product out there and get awareness up.

我們通常會在發布的同時對品牌支出進行投資，以將新產品推向市場並提高知名度。

Once that awareness is up, then we can -- generally are going to let it reduce here in this quarter and in the next.

一旦意識到這一點，我們就可以 - 通常會在本季度和下一個季度讓它減少。

And then depending on what the product cycle is, that brand spend typically comes back in the fall.

然後根據產品週期，品牌支出通常會在秋季恢復。

And when it does, it is a function a bit of if we are launching new products or not.

當它發生時，它有點像我們是否推出新產品。

So what I would say is that lower level we see in Q3, I would expect something similar in Q4, and then, as we get into the new calendar year and the new lighting season, then there may be some adjustments upwards depending on what the exact product launches are for next year.

所以我想說的是我們在第三季度看到的較低水平，我預計第四季度會出現類似的情況，然後，隨著我們進入新的日曆年和新的照明季節，可能會有一些向上的調整，具體取決於確切的產品發佈時間是明年。

Paul Coster, JPMorgan.

摩根大通的保羅·科斯特。

Thank you Chuck.

謝謝查克。

I know you've already given us a hint of some of the strategic moves you're making with this long-term view in mind, but I am just wondering if you could give us some sense of what your manufacturing strategy might be, particularly in the context of change of administration in Washington, D.C.

我知道您已經向我們暗示了您在考慮到這種長期觀點的情況下正在採取的一些戰略舉措，但我只是想知道您是否可以讓我們了解您的製造戰略可能是什麼，特別是在華盛頓特區政府更迭的背景下

Yes, Paul, what I would say is that we don't have any short-term plans to change what we're doing in LEDs.

是的，保羅，我想說的是，我們沒有任何短期計劃來改變我們在 LED 領域所做的事情。

I think we are in an okay place there.

我認為我們在那裡還不錯。

I think, when it comes to lighting, the primary manufacturing facility for Cree is in our Racine facility.

我認為，在照明方面，Cree 的主要製造工廠位於我們的拉辛工廠。

We do use some sub coms.

我們確實使用了一些子 com。

We have some in Mexico as well as we do bring in some product from China, but the majority is already made in the US.

我們在墨西哥有一些產品，我們也從中國進口了一些產品，但大部分產品已經在美國製造。

There's a lot of moving pieces with the administration.

政府有很多動人的部分。

I think we are going to see how that settles out.

我想我們會看到它是如何解決的。

We are going to operate business as usual right now, but I think, our supply chain and the way we are set up, we have the flexibility to adjust on a relatively short-term basis if we need to.

我們現在將照常營業，但我認為，我們的供應鍊和我們的設置方式，如果需要，我們可以靈活地在相對短期的基礎上進行調整。

So, I think we're going to wait and see, but obviously monitor things closely, and if we need to, we will make adjustments.

所以，我認為我們將拭目以待，但顯然會密切關注事態發展，如果需要，我們會做出調整。

But right now, business as usual.

但現在，一切照舊。

Just a quick follow-up, obviously some success with pressing your patent claims through the ITC.

只是快速跟進，顯然通過 ITC 推動您的專利索賠取得了一些成功。

Do you feel like there's more opportunity to do so, particularly with exports from elsewhere in the world?

您是否覺得這樣做的機會更多，尤其是來自世界其他地方的出口？

You know, Paul, we have an ongoing licensing program.

你知道，保羅，我們有一個持續的許可計劃。

I think we have now over 20 licensing partners, so I think we will continue to pursue that.

我認為我們現在有超過 20 個許可合作夥伴，所以我認為我們將繼續追求這一點。

I think the settlement is obviously good because it validates the strength of some of those patents that were in suit.

我認為和解顯然是好的，因為它驗證了其中一些專利的實力。

With that being said, our strong preference is to license and not have to litigate to get to these situations.

話雖如此，我們強烈傾向於獲得許可，而不是通過訴訟來解決這些情況。

So hopefully some of our success -- and maybe after people have seen some of the claims that were validated in the suit that will make it a little easier to do licensing instead of having to go through things like the ITC in the future.

因此，希望我們取得一些成功——也許在人們看到訴訟中經過驗證的一些聲明之後，這將使獲得許可變得更容易，而不必在未來通過 ITC 之類的事情。

But we are going to continue to pursue licensing as part of the business.

但我們將繼續將許可作為業務的一部分。

The big growth drivers still are growing product sales and product profits, but it does add incrementally to the bottom line.

主要的增長動力仍然是產品銷售和產品利潤的增長，但它確實會逐漸增加利潤。

Craig Irwin, ROTH Asset Management.

克雷格·歐文，羅斯資產管理公司。

Good evening and thank you for taking my questions.

晚上好，感謝您提出我的問題。

The first thing I wanted to ask about is LED fixture price degradation.

我想問的第一件事是 LED 燈具價格下降。

We are hearing quite broadly that this seems to be decelerating notably into 2017.

我們廣泛聽到這似乎在 2017 年顯著減速。

Is this something that you are seeing?

這是你看到的嗎？

And maybe can you discuss how this impacts not just your lighting products business, but potentially your chips and components business over the course of the next couple of quarters?

也許您能討論一下這不僅會影響您的照明產品業務，還會在接下來的幾個季度中影響您的芯片和組件業務嗎？

Yes, Craig, what I would tell you is that, from a lighting fixture standpoint, we are seeing what I would consider to be somewhat normal pricing trends quarter to quarter.

是的，克雷格，我要告訴你的是，從照明設備的角度來看，我們正在看到我認為每個季度都有些正常的定價趨勢。

Obviously, there has been some deflation over the past few quarters.

顯然，過去幾個季度出現了一些通貨緊縮。

I don't see a significant trend one way or another.

無論如何，我都沒有看到顯著的趨勢。

Typically, in our business, because we are launching a lot of new products, it tends to be product family changes more than price degradation within them, and there obviously is some.

通常，在我們的業務中，因為我們推出了很多新產品，所以往往是產品系列的變化而不是它們內部的價格下降，而且顯然有一些。

So I don't know that I've seen a significant change, at least in our business, at this point.

所以我不知道在這一點上我看到了重大變化，至少在我們的業務中。

In terms of LEDs, there's a lot of talk in the market about what's going on in LEDs.

在 LED 方面，市場上有很多關於 LED 正在發生的事情的討論。

I think most of it is coming at the chip level, so I think what that means in terms of our segment of the market, which is the high-power LED segment, I think we are going to target more typical competitive trends right now.

我認為其中大部分來自芯片級，所以我認為這對我們的市場細分意味著什麼，即大功率 LED 細分市場，我認為我們現在將瞄準更典型的競爭趨勢。

Obviously, we'll monitor that, but I think it's a little early on the LED side to call it change in the trend yet.

顯然，我們會對此進行監控，但我認為在 LED 方面稱其為趨勢變化還為時過早。

Obviously, there's a lot of talk, but I usually like to give this a couple of quarters to see what the real trend turns out to be.

顯然，有很多討論，但我通常喜歡花幾個季度來看看真正的趨勢是什麼。

So kind of business as usual on LEDs right now, and that means competitive.

現在在 LED 上一切照舊，這意味著競爭。

Great.

偉大的。

And another market related question for you.

還有另一個與市場相關的問題。

Data out in the last couple of days from NEMA seems to point to an acceleration of the conversion of the HID market over to being more of an LED market.

NEMA 過去幾天的數據似乎表明 HID 市場正在加速轉變為 LED 市場。

This seems to be an area I would call a particularly good match for Cree's traditional lighting portfolio, your high-power chips.

這似乎是我認為與 Cree 的傳統照明產品組合（即您的大功率芯片）特別匹配的領域。

Can you comment whether or not this is an area of focus for you as far as new product introductions, or new opportunities, over the course of the next year, and would you maybe comment that this is something you're seeing as well?

您能否評論一下這是否是您在明年推出新產品或新機會的重點領域，您是否會評論這也是您所看到的？

I think that it's pretty clear that LED has become the de facto standard in most segments, but outdoor for sure.

我認為很明顯，LED 已成為大多數領域的事實上的標準，但肯定是戶外的。

And outdoor is where you see more HID.

戶外是您看到更多 HID 的地方。

Obviously, there is some indoor use of HID in some of the high bay applications, but then there's a lot of outdoor.

顯然，在一些高棚應用中，HID 有一些室內使用，但室外也有很多。

If you look at where a lot of our lighting portfolio is, it would be in applications that have historically had at least some part of the product in HID.

如果您查看我們的許多照明產品組合的位置，就會發現在歷史上至少有部分產品採用 HID 的應用。

So, I think it's generally a good trend.

所以，我認為這通常是一個好的趨勢。

I don't know that it changes the trajectory of the business because I think, I think we've probably been seeing a bigger conversion to HID over the last year or two than maybe what was clear to others.

我不知道它會改變業務的軌跡，因為我認為，在過去的一兩年裡，我們可能已經看到了比其他人清楚的更大的向 HID 的轉換。

I think that's what's driven a couple of those market segments.

我認為這就是驅動其中幾個細分市場的原因。

So I think it's a positive -- it's a good trend.

所以我認為這是一個積極的趨勢——這是一個很好的趨勢。

I don't know, though, that it changes the trajectory significantly at this point.

不過，我不知道它在這一點上是否顯著改變了軌跡。

Brian Lee, Goldman Sachs.

布賴恩·李，高盛。

Hey guys.

大家好。

Thanks for taking the questions.

感謝您提出問題。

Maybe first off, a little bit of color on the LED component segment if you could.

如果可以的話，也許首先，在 LED 組件段上添加一點顏色。

Just the negative 10% sequential growth you're guiding to, it's the worst since 2011 based on the data we have in front of us.

根據我們面前的數據，就您所指導的 10% 的負連續增長而言，這是自 2011 年以來最糟糕的一次。

And then the high-level margin commentary also sounds like we are hitting another low in that segment.

然後高水平的利潤率評論聽起來也像是我們在該領域觸及了另一個低點。

So, all of that seems a bit at odds with some of the commentary coming out of the LED supply chain over the past few months with utilization pricing maybe having firmed a bit.

因此，所有這一切似乎與過去幾個月從 LED 供應鏈中傳出的一些評論有些不一致，使用定價可能已經有點堅挺。

So I just want to try to reconcile a bit how much of this might be a bit more structural, increase specific versus it sounds like, Chuck, right now, you think it's more timing-driven.

因此，我只想嘗試調和一下，其中有多少可能更具結構性，增加特定性，而聽起來，查克，現在，您認為這更多是時間驅動的。

Yes, a couple of things, Brian.

是的，有幾件事，布賴恩。

First of all, there is a lot of noise in the supply chain, but I tend to not react too fast to that over the many years of listening to the noise.

首先，供應鏈中有很多噪音，但多年來我一直在聽噪音，但我往往不會對此做出太快的反應。

Let's give it a quarter or two and see what turns into real pricing in the marketplace.

讓我們給它一兩個季度，看看市場上的實際定價是什麼。

So, I've heard the same things, but my sense is that a lot of that talk is speculating on the lower end of the market.

所以，我也聽說過同樣的事情，但我的感覺是，很多談話都是在猜測市場的低端。

As factories get full, they are getting rid of some of their worst business, which is really not a part of the market Cree is in.

隨著工廠滿員，他們正在擺脫一些最糟糕的業務，這實際上不是 Cree 所在市場的一部分。

So, we're going to continue to target a more normal trend, at least from the supply chain right now, but obviously we will monitor that.

因此，我們將繼續針對更正常的趨勢，至少從現在的供應鏈來看，但顯然我們會對此進行監控。

In terms of the other -- I'm going to talk margin first.

就另一個而言——我要先談談保證金。

The other thing to keep in mind is that obviously, when our factory is a little less loaded, we typically have a little lower margin.

要記住的另一件事是，很明顯，當我們的工廠負載少一點時，我們通常會有低一點的利潤。

That's normal.

這很正常。

The other thing we are doing, and I think Mike mentioned this in his comments earlier, is we have a short-term headwind on LEDs.

我們正在做的另一件事，我認為邁克在他之前的評論中提到了這一點，我們在 LED 上遇到了短期逆風。

We are ramping up a new LED chip product family that goes across a couple of our product lines.

我們正在增加一個新的 LED 芯片產品系列，該系列涵蓋我們的幾條產品線。

That will cost us a little bit in margin here this quarter, maybe a little bit in the next.

這將使我們在本季度損失一點利潤，也許在下一個季度損失一點點。

I think, as we get that fully ramped up, we actually expect that to be a benefit to us.

我認為，隨著我們全面提升，我們實際上希望這對我們有利。

But as we go through the initial ramp up, that costs us a little bit of money in the short-term, but definitely the thing we want to go do as it helps the business overall.

但是當我們經歷最初的增長時，這在短期內會花費我們一點錢，但絕對是我們想做的事情，因為它有助於整體業務。

As far as revenue goes, normally, I think we're probably in a 5%, 6% range is what you probably saw in the last couple of years.

就收入而言，通常情況下，我認為我們可能在 5% 到 6% 的範圍內，這是您在過去幾年中可能看到的。

The difference is the way our quarters fell, we have the (technical difficulty) impact of the Christmas, New Year's holiday and then again the Chinese holiday.

不同之處在於我們的季度下跌方式，我們受到聖誕節、新年假期以及中國假期的（技術難度）影響。

So when we look at the number of selling days, it tends to have a bigger impact on this quarter than in the past.

因此，當我們查看銷售天數時，它對本季度的影響往往比過去更大。

So, if we just look at it on a ratio of days that we will have actively selling in the market, the 10% is a lot closer to the 6% in the past than you might think.

所以，如果我們只看我們將在市場上積極銷售的天數比率，10% 比你想像的更接近過去的 6%。

So we don't see a significant change there one way or another.

因此，我們看不到那裡有任何重大變化。

And obviously, if the market does stabilize and pricing really does improve, I would expect we would get the same benefit, but right now, we are taking a little bit more cautious view on the market.

顯然，如果市場確實穩定並且價格確實有所改善，我預計我們會得到同樣的好處，但現在，我們對市場持謹慎態度。

Okay, great.

好，太棒了。

And just to follow-up, Chuck, at the annual shareholder meeting at the end of last year, you pointed to this as part of the strategy around LED components.

緊接著，查克，在去年年底的年度股東大會上，您指出這是圍繞 LED 組件的戰略的一部分。

You're sort of reaffirming this on the call today.

你在今天的電話會議上重申了這一點。

But can you maybe define a little bit of the parameters as you think about the automotive effort, which you've highlighted a couple of times over the past few months, and then the new product strategy in LED components that you just talked about as well?

但是，您能否在考慮汽車工作時定義一些參數，在過去幾個月中您已經多次強調了這一點，然後是您剛才談到的 LED 組件的新產品戰略?

Are there levels of growth?

有沒有增長水平？

Is it a margin story?

這是一個邊緣故事嗎？

What sort of parameters are you thinking about in terms of getting a bit more on the recovery path in that segment where you justify, I guess, continuing the commitment to the LED segment, given the ongoing investment?

考慮到持續的投資，您正在考慮哪些參數，以便在您證明繼續致力於 LED 細分市場的那個細分市場的恢復路徑上獲得更多信息？

Thanks.

謝謝。

So Brian, we talked about how -- and you heard for the last couple of quarters, focus on applications where our high-power technology adds real value to the end customer applications.

所以布賴恩，我們談到瞭如何——你在過去幾個季度聽到的，專注於我們的高功率技術為最終客戶應用程序增加真正價值的應用程序。

And we started talking about automotive more publicly only recently, but that's been something we've been working on for a couple of years, and it's a great application.

我們最近才開始更公開地談論汽車，但這是我們多年來一直在努力的事情，它是一個很好的應用程序。

When you look at automotive exterior lighting, our high-power technology plays real well there.

當您查看汽車外部照明時，我們的高功率技術在那裡發揮得非常好。

So we think that's a place that can drive revenue and profits.

所以我們認為這是一個可以推動收入和利潤的地方。

It will take a little while, right?

這需要一點時間，對吧？

That's not an instant design-in application, but we think, in the mid- to longer-term, that's an opportunity to add some revenue and profit to the LED business.

這不是即時的設計應用，但我們認為，從中長期來看，這是為 LED 業務增加一些收入和利潤的機會。

The other thing we are looking at is how to take our technology and apply it to some other applications.

我們正在研究的另一件事是如何採用我們的技術並將其應用於其他一些應用程序。

In some cases, that will be extending it within lighting.

在某些情況下，這將在照明範圍內擴展它。

And in other cases, it will be can we look for complementary applications to use the technology.

在其他情況下，我們可以尋找互補的應用程序來使用該技術。

I think those are a little harder to give any specifics on.

我認為這些都很難給出任何細節。

I think the real message, though, is we think what we're doing in LEDs can not only deliver the results you are seeing today, but we think there are opportunities to add, at least incrementally, to both the revenue and the profit line here in the mid to longer-term.

不過，我認為真正的信息是，我們認為我們在 LED 領域所做的工作不僅可以提供您今天看到的結果，而且我們認為有機會至少逐步增加收入和利潤線這裡是中長期。

So that's why we think it's a good return and obviously it does a great job of supporting our lighting strategy overall.

所以這就是為什麼我們認為這是一個很好的回報，顯然它在支持我們的整體照明策略方面做得很好。

Joe Osha, JMP Securities.

喬奧沙，JMP 證券公司。

Hello there.

你好呀。

Thank you.

謝謝你。

I wanted to ask about the lighting products business.

我想問一下照明產品業務。

Obviously, there have been some operational challenges.

顯然，存在一些運營挑戰。

As we brought new management in there, I'm wondering what steps might have been taken to reverse those.

當我們在那裡引進了新的管理層時，我想知道可能已經採取了哪些步驟來扭轉這些局面。

And in particular, I'm curious as to whether we think it might be reasonable to think about that business getting back to the run rate that it was enjoying, say, late in 2015.

特別是，我很好奇我們是否認為考慮該業務恢復到它所享受的運行速度是否合理，例如，在 2015 年末。

Thank you.

謝謝你。

So, obviously, you know we made a change last summer by bringing David Elien into the role of running the day-to-day commercial lighting business.

所以，很明顯，你知道我們去年夏天做出了改變，讓 David Elien 擔任日常商業照明業務的負責人。

And then, about 90 days ago, Danny Castillo joined the team with an overall lighting leadership role.

然後，大約 90 天前，Danny Castillo 加入了團隊，擔任整體照明領導職務。

And I think David has obviously had more time to make an impact, but you can see that, over the last few quarters, the fundamentals have started to improve, and I think that I would expect Danny will add similarly to the business.

而且我認為大衛顯然有更多的時間來產生影響，但你可以看到，在過去的幾個季度裡，基本面已經開始改善，我認為我希望丹尼會為業務做出類似的貢獻。

It's 90 days in, so I think it's a little early there, but I think we are on the right track.

現在已經 90 天了，所以我認為現在有點早，但我認為我們走在正確的軌道上。

Do I think it can return to old levels?

我認為它可以恢復到舊水平嗎？

Our target is to grow that business not only to the old levels but actually to beyond that.

我們的目標是不僅將業務發展到舊水平，而且實際上更進一步。

So it's not going to happen in one quarter.

所以它不會在一個季度內發生。

We think you fix the fundamentals and you rebuild the customer momentum.

我們認為您可以修復基本面並重建客戶動力。

And as I said earlier, we did see -- last quarter, we once again saw higher quoting activity.

正如我之前所說，我們確實看到了——上個季度，我們再次看到了更高的報價活動。

So, to us, that's a good indicator of future demand.

所以，對我們來說，這是未來需求的一個很好的指標。

So, I think we are working on the right fundamentals.

所以，我認為我們正在研究正確的基本面。

At the same time, it will be likely incremental quarter-by-quarter activity because it's a big business and there's lots of things we've got to make happen.

同時，這可能會是逐季增加的活動，因為這是一項大業務，我們必須做很多事情。

But yes, I think the team we have in place is going to make progress, and I think we'll continue to invest in the business and in the people to make that happen.

但是，是的，我認為我們現有的團隊將會取得進展，我認為我們將繼續投資於業務和人員以實現這一目標。

Thank you.

謝謝你。

And one follow-up.

和一個後續。

If you had to, with the money that you are hopefully going to have here from Wolfspeed in a bit, think about just at a high level what type of product lineup you would like to add to your business, do you have any thoughts about what that might be?

如果你不得不，用你希望從 Wolfspeed 那裡得到的錢，在高層次上考慮一下你想為你的業務添加什麼類型的產品陣容，你有什麼想法嗎？那可能是？

I'm talking about inorganic growth here.

我在這裡談論的是無機增長。

Yes, I think we are being pretty open-minded.

是的，我認為我們的思想非常開放。

I think there's likely to be probably the right word is a more tuck-in, so they are complementary pieces to our product portfolio.

我認為可能正確的詞是更多的塞進，所以它們是我們產品組合的補充部分。

But we compete across a number of different market segments.

但我們在多個不同的細分市場競爭。

So an idea would be is what -- is there a set of products that complements something we are doing and complements the channels we are in today.

所以一個想法是 - 是否有一組產品可以補充我們正在做的事情並補充我們今天所處的渠道。

But I don't want to give too much specificity because we are looking at a number of different ideas, and it's likely not one, it's likely there's -- you need to look at the timing and the opportunities that are available.

但我不想給出太多細節，因為我們正在研究許多不同的想法，而且可能不是一個，很可能有——你需要看看時機和可用的機會。

And these pieces will likely come together over multi years.

這些碎片很可能會在多年內聚集在一起。

So we might do something in the next year and I would imagine we will continue to look for other pieces over the next several years.

所以我們可能會在明年做點什麼，我想我們會在接下來的幾年裡繼續尋找其他作品。

Tom Sepenzis, Northland.

湯姆·塞彭齊斯，北國。

Thank you for taking my questions.

謝謝你接受我的問題。

I'm just curious.

我只是好奇。

You mentioned that the settlement or the litigation move helped gross margins in the second quarter.

您提到和解或訴訟舉動有助於第二季度的毛利率。

And I'm just curious.

我只是好奇。

What are you thinking in terms of gross margins on a blended basis for Q3?

您如何看待第三季度的混合毛利率？

We didn't break out specific targets, but I can give you some qualitatives.

我們沒有列出具體目標，但我可以給你一些定性。

So, if you look at what we said about last quarter, that if you exclude the benefit from the license agreement and the increase in the warranty reserves, last quarter, we would've been generally in the middle of our target range for both revenue and profits.

所以，如果你看看我們上個季度所說的話，如果你排除許可協議的好處和保修準備金的增加，上個季度，我們通常會處於我們兩個收入目標範圍的中間和利潤。

And then what we are targeting this quarter is that, from a continuing ops standpoint, that we would expect LEDs to likely be a little bit lower just if we're going to have seasonally lower volumes, and that the lighting business will make some incremental progress to mostly offset that.

然後我們本季度的目標是，從持續運營的角度來看，我們預計 LED 可能會稍微低一點，只要我們要季節性地減少銷量，而且照明業務將有所增加進展主要抵消了這一點。

So no specifics there, but it should at least give you a trend to work from.

所以沒有具體細節，但它至少應該給你一個工作的趨勢。

Great, thank you.

太好了謝謝。

And then just in terms of the magnitude of the upper revenue in the December quarter and then the kind of lighter March revenue, was there any pull-in quicker just because of the holidays that impacted the trend here between December and March, or are you just seeing weaker demand overall?

然後僅就 12 月季度的較高收入的幅度以及 3 月的那種較輕的收入而言，是否因為假期影響了 12 月至 3 月之間的趨勢，是否有任何更快的拉動，或者你是只是看到整體需求疲軟？

No.

不。

Honestly, I do look at -- Tom, if you look at the business in December, we basically, if you just look at the core part of the business, take out the items I mentioned a minute ago, we were pretty much in the middle of our range, plus or minus.

老實說，我確實看過——湯姆，如果你看一下 12 月份的業務，我們基本上，如果你只看業務的核心部分，去掉我一分鐘前提到的項目，我們幾乎處於我們範圍的中間，正負。

So it kind of went as expected, both for LEDs and for lighting.

所以它有點像預期的那樣，無論是對於 LED 還是對於照明。

And in the March quarter, if you look at that business, we are targeting that to be down roughly about seasonally, LEDs a little more, lighting a little less, but, net-net, that's about what I would expect it to be.

在 3 月季度，如果您查看該業務，我們的目標是大致季節性地下降，LED 多一點，照明少一點，但是，淨淨，這就是我所期望的。

If our business in those two areas is down roughly 5% quarter to quarter, that's about what we would normally expect to see for those businesses on average, seasonally.

如果我們在這兩個領域的業務季度環比下降約 5%，這與我們通常預期的這些業務的季節性平均水平差不多。

So I think we are seeing a relatively normal trend right now.

所以我認為我們現在看到了一個相對正常的趨勢。

Edwin Mok, Needham & Company.

Edwin Mok，Needham & Company。

Thanks for taking my question.

感謝您提出我的問題。

Chuck, the first question on the consumer or the retail lighting.

Chuck，消費者或零售照明的第一個問題。

IT sounds like volume is really down here.

聽起來這裡的音量真的很低。

I'm just curious how you think about that strategy.

我只是好奇你如何看待這個策略。

You guys talk about using that as kind of a marketing tool, right?

你們談論將其用作一種營銷工具，對嗎？

Is that still the same thinking process?

這仍然是相同的思維過程嗎？

And are you still just sticking with just that basically one main partner, Home Depot, or any thought about expanding the channel?

你仍然只是堅持基本上是一個主要的合作夥伴家得寶，還是有任何關於擴大渠道的想法？

Look, I still think the consumer bulb business has done a great job building our brand, but also it's a real business now.

看，我仍然認為消費燈泡業務在建立我們的品牌方面做得很好，但現在它也是一項真正的業務。

And so what we've been focusing on over the last year is shifting that to a more premium strategy.

因此，我們在過去一年中一直關注的是將其轉變為更優質的策略。

That's actually aligned with what we want to do anyways as a company.

這實際上與我們作為一家公司想要做的事情是一致的。

And as a result, with that shift, we've actually been able to improve the profitability of that business.

因此，通過這種轉變，我們實際上已經能夠提高該業務的盈利能力。

So I think we're going to continue forward with that.

所以我認為我們將繼續前進。

I think we're going to look at what channels make the most sense.

我想我們將看看哪些渠道最有意義。

We have been real pleased with our work with the Home Depot over the last several years.

在過去的幾年裡，我們對與 Home Depot 的合作感到非常滿意。

I think we're going to continue to want to work with them, but, at the same time, you can buy our products on Amazon and some other places today.

我認為我們將繼續希望與他們合作，但與此同時，您今天可以在亞馬遜和其他一些地方購買我們的產品。

And we will look for channels that complement what we are doing, but our goal is not to find every channel to sell our products, but to find places where people are willing to work with us to really promote what matters in LED bulbs and these premium features, because I think what we want to avoid is this race to making all LEDs cheap and not lasting very long, which kind of defeats the whole purpose of why we invented it in the first place.

我們將尋找與我們正在做的事情相輔相成的渠道，但我們的目標不是找到銷售我們產品的每一個渠道，而是找到人們願意與我們合作的地方，以真正推廣 LED 燈泡和這些優質產品的重要性功能，因為我認為我們想要避免的是讓所有 LED 變得便宜且使用壽命不長的競賽，這違背了我們最初發明它的全部目的。

Great.

偉大的。

That's actually helpful.

這實際上很有幫助。

And then I think, if I caught your commentary correctly, you said that your lighting product margin, on an apples-to-apples basis, you expect to actually improve a little bit in 3Q versus 2Q, even though you expect lower sales.

然後我想，如果我正確理解了你的評論，你說你的照明產品利潤率，在蘋果對蘋果的基礎上，你預計第三季度與第二季度相比實際上會有所改善，即使你預計銷售額會下降。

I'm just curious.

我只是好奇。

What is driving that improvement?

是什麼推動了這種改進？

Is it mix, or price, or anything that you can help us with that?

是混合還是價格，或者任何你可以幫助我們的東西？

So, what we would expect is that we will actually see a little bit of growth in the commercial lighting business, and that will -- and that, combined with improvement in margins, both in commercial and consumer, will help us gain a little bit quarter to quarter.

所以，我們期望的是，我們實際上會看到商業照明業務的一點點增長，這將——再加上商業和消費者利潤率的提高，將幫助我們獲得一點點收益季度到季度。

But I would also say, on the core products, we expect to just make some incremental improvement as we are selling next-gen newer products.

但我還要說，在核心產品上，我們希望在銷售下一代更新產品時進行一些漸進式改進。

So, obviously, as new product get sold, we get a mix benefit.

因此，顯然，隨著新產品的銷售，我們獲得了混合收益。

Vishal Shah, Deutsche Bank.

德意志銀行的維沙爾·沙阿。

Thanks for taking my question.

感謝您提出我的問題。

Chuck, what percentage of your commercial lighting segment product would be the SmartCast product line?

Chuck，您的商業照明細分市場產品中 SmartCast 產品線的百分比是多少？

And what kind of margin profile do you expect for some of your new products, especially in some of the smart lighting products?

您期望您的一些新產品，尤其是一些智能照明產品的利潤率如何？

Yes, so we don't break it out.

是的，所以我們不打破它。

I would tell you it grew last quarter, but it's still a small percentage, so it's not a big number, but it is accretive.

我會告訴你它在上個季度有所增長，但它仍然是一個很小的百分比，所以它不是一個很大的數字，但它是增值的。

So the smart products have a higher margin than our standard products do today.

所以智能產品比我們今天的標準產品有更高的利潤。

So, as that grows, that generally is a positive from a mix standpoint.

因此，隨著這種情況的增長，從混合的角度來看，這通常是積極的。

And -- but I would also tell you that some of our other new non-smart products are also margin accretive.

而且 - 但我還要告訴你，我們的其他一些新的非智能產品也可以增加利潤。

So, I think that we get a benefit as the new products increase as a percentage of our business right now.

因此，我認為隨著新產品現在占我們業務的百分比增加，我們會從中受益。

Okay, great.

好，太棒了。

Thank you.

謝謝你。

And just one market question.

只有一個市場問題。

One of your competitors mentioned some slowdown in activity because of election cycle.

您的一位競爭對手提到，由於選舉週期，活動有所放緩。

Have you seen anything at all in the market?

你在市場上看到過什麼嗎？

And what is your general take on where we are in terms of adoption rate and acceleration of demand, both in the outdoor and indoor lighting segment?

您對我們在室外和室內照明領域的採用率和需求加速方面的總體看法是什麼？

You know, look, there is definitely variability from month to month, and there's a lot of different factors that are going on in the marketplace, and they affect our business.

你知道，看，每個月肯定存在變化，市場上正在發生許多不同的因素，它們會影響我們的業務。

I think the thing to keep in mind with Cree, though, is, as we've been working to improve the fundamentals, some of what we're seeing is just the benefit of improving those fundamentals.

不過，我認為 Cree 需要牢記的是，當我們一直在努力改善基本面時，我們所看到的一些只是改善這些基本面的好處。

So, we absolutely are affected by the same market trends, but a little bit of this is getting back -- moving back towards where we were from an execution standpoint.

因此，我們絕對會受到相同市場趨勢的影響，但其中一點點正在回歸——從執行的角度回到我們所處的位置。

So, I think what you are seeing in our results is a little bit of a combination of those two things.

所以，我認為你在我們的結果中看到的是這兩件事的結合。

But there's definitely variability in demand, just like we would expect this quarter that, generally speaking, the outdoor business slows down in the winter.

但需求肯定存在變化，就像我們本季度預期的那樣，一般來說，戶外業務在冬季會放緩。

It's just there's not as much activity.

只是沒有那麼多的活動。

So that's typically what we see, and that's part of our targets that we've given you as well.

因此，這通常是我們所看到的，也是我們為您提供的目標的一部分。

Stephen Chin, UBS.

瑞銀的斯蒂芬·欽。

Thanks for taking my question.

感謝您提出我的問題。

First, can you maybe elaborate on the third-party commercial product, the reserve for the defective product?

首先，您能否詳細說明第三方商業產品，即缺陷產品的儲備？

Was this a one-time impact, and can you maybe give us a sense of the size?

這是一次性的影響嗎？你能給我們一個規模的感覺嗎？

Yes.

是的。

So, I think what you will see is, when the Q comes out, roughly about an $8 million increase in our warranty reserves, and it's related to a third-party driver that was used in a couple of our major product lines.

所以，我想你會看到，當 Q 推出時，我們的保修準備金增加了大約 800 萬美元，這與我們的幾個主要產品線中使用的第三方驅動程序有關。

So, we now have a new driver qualified and in production, and what that reserve is it really accounts for the impact of what we would expect to be a higher return rate on those products that had that particular driver over the next 10 years.

所以，我們現在有一個新的驅動程序合格並投入生產，而這個儲備是多少，它真正解釋了我們預計在未來 10 年具有該特定驅動程序的那些產品的更高回報率的影響。

Okay, thank you.

好的謝謝你。

And just as sort of a follow-up to the previous question, is all of the cash that you're expecting to receive, all that $585 million net cash from the sale of Wolfspeed, is that all onshore?

就像對上一個問題的跟進一樣，您期望收到的所有現金，出售 Wolfspeed 的所有 5.85 億美元淨現金，都是在岸上嗎？

Yes.

是的。

It would all be onshore.

這一切都將在陸上。

Okay.

好的。

But outside of that, related to the new administration, do you think that you could potentially benefit from proposed changes to the tax code and potentially a lower rate on repatriation?

但除此之外，與新政府有關，您是否認為您可能會從擬議的稅法變更和可能的較低遣返率中受益？

You know, look, there is definitely things that have been proposed that would benefit us, and there's also a lot of stuff about trade and importing that I think could add variability on the other side.

你知道，聽著，肯定有一些對我們有益的提議，還有很多關於貿易和進口的東西，我認為這可能會增加另一方面的可變性。

At this point, what I would say is there's a lot of moving pieces.

在這一點上，我想說的是有很多動人的部分。

We are not -- I think it's just premature to make -- speculate the net pros and cons.

我們不是——我認為現在做這個還為時過早——推測淨利弊。

There's obviously some good stuff in there; there's obviously some things that would force us to adjust.

裡面顯然有一些好東西；顯然有些事情會迫使我們調整。

I think, net-net, we think we'll be fine as a result of all this, but we've actually got to see what turns into legislation and what gets actually implemented.

我認為，net-net，我們認為這一切都會好起來的，但我們實際上必須看看什麼變成了立法，什麼得到了實際實施。

So I think we're going to evaluate it and kind of run the business as normal until we see what actually gets implemented.

因此，我認為我們將對其進行評估，並照常經營業務，直到我們看到實際實施的內容。

Krish Sankar, Bank of America Merrill Lynch.

美銀美林的 Krish Sankar。

Thanks for taking my questions.

感謝您提出我的問題。

I have two of them.

我有兩個。

One is to an earlier question.

一個是前面的問題。

When you get back to your lighting products run rate in 2015, I would say you get to like over $250 million, what kind of a gross margin would that business be able to sustain?

當你回到 2015 年的照明產品運行率時，我會說你會喜歡超過 2.5 億美元，該業務能夠維持什麼樣的毛利率？

Can you get to over 30% on the lighting side?

你能在照明方面達到 30% 以上嗎？

And then the second question is, given that you're coming off a seasonal bond, is it fair to assume both the LED and the lighting products should actually sequentially grow in the June quarter relative to March?

然後第二個問題是，鑑於您正在擺脫季節性債券，假設 LED 和照明產品實際上應該在 6 月季度相對於 3 月連續增長是否公平？

Thank you.

謝謝你。

Yes, so second question first, we would expect that LEDs will grow in the June quarter versus March.

是的，所以首先要問第二個問題，我們預計 LED 將在 6 月季度與 3 月相比有所增長。

That's a typical normal seasonal trend.

這是典型的正常季節性趨勢。

I don't have specific targets, it's premature, but that would be the normal trend and that would be our expectation at this point.

我沒有具體的目標，現在還為時過早，但這將是正常趨勢，也是我們目前的預期。

In terms of the lighting business, I would also expect that, given the increased quoting activity we saw over the last couple of quarters, that we would start to at least see some benefit from that in our fiscal Q4 or the June quarter.

在照明業務方面，我還預計，鑑於我們在過去幾個季度看到的報價活動增加，我們至少會在第四財季或 6 月季度開始看到一些好處。

So that would be, I think, the answer to both of those questions.

所以，我想，這就是這兩個問題的答案。

The other question you asked was what would likely the margins be as we grow the lighting revenue.

你問的另一個問題是，隨著我們照明收入的增長，利潤率可能會是多少。

So, our target, and I've said this before in our annual shareholder meeting and other places, is we target over time, and this will take time, is to make incremental partners in gross margin over the next several years and target to getting that -- those lighting margins back into the mid-30s% would be at least our next milestone.

所以，我們的目標，我之前在年度股東大會和其他地方說過，我們的目標是隨著時間的推移，這需要時間，是在未來幾年內增加毛利率的合作夥伴，目標是獲得那 - 那些回到 30% 中期的照明利潤率將至少是我們的下一個里程碑。

So that's we are targeting and it will take some time and a lot of good execution and the benefit of new products, but that's what we are focused on.

這就是我們的目標，這將需要一些時間和大量的良好執行以及新產品的好處，但這就是我們關注的重點。

Thanks guys.

多謝你們。

Daniel Baksht, Pacific Crest Securities.

Daniel Baksht，Pacific Crest 證券。

Thanks very much.

非常感謝。

Kind of a follow-up to the last question, given the settlement with Feit, do you continue to expect a better second half versus first half for revenue?

考慮到與 Feit 的和解，您是否繼續期待下半年的收入比上半年更好？

Yes, you know, I would say, on the core business, absolutely.

是的，你知道，我會說，絕對是在核心業務上。

I think a little bit is going to be what the target happens in Q4, so we don't have our Q4 targets yet.

我認為第四季度的目標會有一點，所以我們還沒有第四季度的目標。

We would definitely -- we are currently targeting both LED and lighting to grow, but since we don't have specific targets, I can't really give you that granularity of the numbers right now.

我們肯定會 - 我們目前的目標是 LED 和照明的增長，但由於我們沒有具體的目標，我現在不能真正給你這個數字的粒度。

Okay, fair enough.

好吧，夠公平的。

And then the second question, does your discontinued guide reflect expectations for contribution for a full quarter?

然後是第二個問題，您已停產的指南是否反映了對整個季度貢獻的預期？

Yes, it does.

是的，它確實。

Colin Rusch, Oppenheimer.

科林·魯施，奧本海默。

Thanks for taking my question.

感謝您提出我的問題。

This is Kristen on for Colin.

這是科林的克里斯汀。

I just want to talk a little bit about the quoting activity that you mentioned, and maybe if you could build on how much of that lighting business is stock and flow versus projects at this point.

我只想談談你提到的報價活動，也許你可以建立在照明業務中有多少是庫存和流動與項目之間的關係。

The quoting activity is generally project quoting activity, so that's when we are measuring that.

報價活動通常是項目報價活動，所以這就是我們衡量的時候。

We are not really measuring -- there really isn't -- the way we build that metric is not based on stock inflow; it will be based on projects.

我們並沒有真正衡量——真的沒有——我們建立該指標的方式不是基於股票流入；它將基於項目。

So that's a metric.

所以這是一個指標。

We do have stock inflow business, but that's not what we are measuring when I give you that benchmark.

我們確實有股票流入業務，但是當我給你那個基準時，這不是我們衡量的。

Okay.

好的。

Can you give a little color as to what you're seeing on the project side then?

您能否就您在項目方面看到的內容提供一點顏色？

Yes, so what we said is that the quoting activity, which is generally projects, it had increased in our fiscal Q1 and it increased again in our fiscal Q2.

是的，所以我們說的是報價活動，通常是項目，在我們的第一財季有所增加，在我們的第二財季再次增加。

So that's as much color as we've given you so far on that.

所以這就是我們到目前為止給你的顏色。

And then we would expect, just to put that in perspective, it's typically a nine- to 12-month cycle to convert quoting activity into business.

然後，我們預計，只是為了正確看待這一點，將報價活動轉化為業務通常需要 9 到 12 個月的周期。

Great.

偉大的。

Thank you very much.

非常感謝。

Cindy Motz, Williams Capital.

Cindy Motz，威廉姆斯資本。

Thanks for taking my question.

感謝您提出我的問題。

I'm sorry if you already answered this; I dropped off at one point.

如果您已經回答了這個問題，我很抱歉；我在某一時刻下車了。

I know you answered about lighting margins, where you see they're going.

我知道你回答了關於照明邊距的問題，你看到它們要去哪裡。

For LED margins, would you expect them -- maybe I think you said third quarter a little bit seasonally down then, but going forward, you have a target for that.

對於 LED 利潤率，您是否期望它們 - 也許我認為您說第三季度會季節性下降，但展望未來，您有一個目標。

And then also just at the shareholder meeting back in October, you had talked a lot about maybe developing more the agency lines and channels and different things like that.

然後就在 10 月份的股東大會上，你談到了很多關於可能開發更多代理線和渠道以及類似的事情。

So, I was just looking for an update on how that was going.

所以，我只是在尋找有關情況的更新。

Thanks.

謝謝。

So, let me take the question on LEDs first and then I'll come back to your question on lighting channels.

所以，讓我先回答關於 LED 的問題，然後再回到你關於照明通道的問題。

So, in LEDs, we are targeting Q3 to be seasonally down in margins a little bit, lower volumes typically.

因此，在 LED 領域，我們的目標是第三季度的利潤率季節性下降，通常是銷量下降。

So we also have some, in the short-term, some higher costs as we ramp up the new product, as I mentioned earlier.

因此，正如我之前提到的，隨著我們推出新產品，我們在短期內也會有一些更高的成本。

I think, as that product ramp kind of comes through this quarter and into next, as it ramps up, that kind of headwind should go away.

我認為，隨著本季度和下一個季度的產品升級，隨著它的升級，這種逆風應該會消失。

And then it's really a function of what is the product mix, and what's the competitive environment, and how do some of these new activities open new applications?

然後它真的取決於產品組合是什麼，競爭環境是什麼，以及這些新活動中的一些如何打開新應用程序？

And look, it's just hard to predict.

看，這很難預測。

I think, in the near term, I would expect the business to be in a similar range, plus or minus.

我認為，在短期內，我預計該業務將處於相似的範圍內，正負。

But going forward, those other dynamics, what the market is doing as well as which of our new products are ramping up at what speed is going to add some variability to that.

但展望未來，其他動態、市場正在做什麼以及我們的哪些新產品正在以何種速度增長，這將增加一些可變性。

So, it's hard to give you anything more than kind of the qualitative measures that are going to affect that.

因此，除了會影響這一點的定性測量之外，很難給你任何東西。

In terms of the shareholder commentary around channels, we are absolutely working to continue to strengthen our channel.

在圍繞渠道的股東評論方面，我們絕對致力於繼續加強我們的渠道。

What that really means is, in many cases, it's making investments to help our current agents and distribution partners be more successful selling our products.

這真正意味著，在許多情況下，它正在進行投資，以幫助我們目前的代理商和分銷合作夥伴更成功地銷售我們的產品。

And in some cases, it's bringing on additional partners, but it's really a combination of those two things.

在某些情況下，它會帶來更多的合作夥伴，但它實際上是這兩件事的結合。

There's no one item to report I would say that are we making -- we are making incremental progress each quarter.

沒有要報告的項目我會說我們正在做 - 我們每個季度都在取得增量進展。

But this is not a one- or two-quarter thing.

但這不是一個或兩個季度的事情。

This is something we will be working on for the next few years.

這是我們將在未來幾年努力的事情。

And one of the reasons we want to add some incremental products inorganically is that typically improves our position in finding good channel partners.

我們希望以無機方式添加一些增量產品的原因之一是，這通常會提高我們在尋找良好渠道合作夥伴方面的地位。

Great.

偉大的。

Thanks.

謝謝。

Craig Irwin, ROTH Asset Management.

克雷格·歐文，羅斯資產管理公司。

Thanks for taking the follow-up question.

感謝您提出後續問題。

So, Chuck, I wanted see if you could maybe give us a little bit more detail on the chip family that you're investing for right now.

所以，查克，我想看看你是否可以給我們更多關於你現在投資的芯片系列的細節。

I know you guys don't put money into CapEx unless you feel it's a material benefit to the business.

我知道你們不會把錢投入資本支出，除非你覺得這對企業有實質性的好處。

If you could frame out the scope of the investment and the timeline potentially, and what portion of your existing portfolio this chip family would be relevant for?

如果您可以確定投資範圍和時間表，以及該芯片系列與您現有投資組合的哪一部分相關？

Thank you.

謝謝你。

Yes, Craig, this is not a significant capital investment.

是的，克雷格，這不是一項重大的資本投資。

This is really an operating investment.

這確實是一項運營投資。

So, as we bring on a new technology, it's in several of our XLamp families.

因此，當我們引入一項新技術時，它就出現在我們的幾個 XLamp 系列中。

I don't have a specific breakout for you.

我沒有給你一個具體的突破。

But as we ramp that up, typically during a ramp up of a new product, we have -- incur some higher costs.

但是隨著我們的增加，通常是在新產品的增加期間，我們會產生一些更高的成本。

It's typically yields as you scale up the new product.

當您擴大新產品的規模時，通常會產生收益。

So I would expect -- and this is pretty typical for in the past when LEDs was the primary focus of the business.

所以我希望——這在過去 LED 是業務的主要焦點時非常典型。

It's just we have a new product chip coming online.

只是我們有一個新的產品芯片要上線了。

It actually gives us a performance benefit in the market and actually should give us a cost benefit in the mid- to longer-term.

它實際上給我們帶來了市場上的性能收益，實際上應該給我們帶來中長期的成本收益。

But in the short-term, it costs a little money to do that.

但在短期內，這樣做要花一點錢。

So that's what we are doing, and I think that it's going to lead to a better net position, but, in the short-term, cost us a little more in yields.

所以這就是我們正在做的事情，我認為這將導致更好的淨頭寸，但在短期內，我們會在收益率上付出更多的代價。

And can you confirm if those are the 2500 lumen XHP chips that you've press released recently or if it's something else?

您能否確認這些是您最近發布的 2500 流明 XHP 芯片，還是其他？

So that's a component, so these are actually chips that go into a couple of different components.

所以這是一個組件，所以這些實際上是進入幾個不同組件的芯片。

So we have chip product families that end up in various components.

因此，我們的芯片產品系列最終包含各種組件。

So the XHP has certain products in chip families.

所以XHP在芯片家族中有一定的產品。

I'll be honest with you, Craig.

老實說，克雷格。

I Can't tell you exactly what's in that particular XHP chip, but what I will tell you is, in several of our product lines, this new chip goes into, and that's driving some of the short-term costs.

我不能確切地告訴你那個特定的 XHP 芯片中有什麼，但我要告訴你的是，在我們的幾個產品線中，這種新芯片進入了，這推動了一些短期成本。

Great.

偉大的。

Thanks for the clarification.

感謝您的澄清。

(Operator Instructions).

（操作員說明）。

John Quealy, Canaccord Genuity.

約翰奎利，Canaccord Genuity。

Thanks again.

再次感謝。

In terms of potential deployment of the Wolfspeed cash, Chuck, can you talk about any processes you're doing on the M&A side?

關於 Wolfspeed 現金的潛在部署，Chuck，您能談談您在併購方面正在做的任何流程嗎？

Is it likely to see a fairly quick transaction, or what's your thoughts, especially where multiples are and available properties are in the lighting group or LED group?

是否可能會看到相當快的交易，或者您的想法是什麼，尤其是在照明組或 LED 組中有多個和可用屬性的情況下？

Thanks.

謝謝。

So, obviously, there's a lot of lighting companies in North America, and they are at various stages of their life cycle.

所以，很明顯，北美有很多照明公司，它們處於生命週期的不同階段。

So I think we are being pretty open-minded.

所以我認為我們的思想非常開放。

We are talking to a number of different people, looking at a lot of different things that are out there.

我們正在與許多不同的人交談，著眼於許多不同的事物。

And it's really going to be a combination of fit and timing.

這真的將是適合和時機的結合。

From a Cree standpoint, the first focus is we want to get the Wolfspeed deal closed.

從 Cree 的角度來看，第一個重點是我們希望完成 Wolfspeed 的交易。

That's what we need to get done first.

這就是我們首先需要完成的事情。

And then it will be what opportunities are out there.

然後就是那裡有什麼機會。

It doesn't mean we are not evaluating them today.

這並不意味著我們今天不評估它們。

We are actively doing that.

我們正在積極這樣做。

But if I had to guess, if things stay on the current course, we are likely to have some type of an M&A transaction in calendar 2017, but it's certainly not going to happen, at least at this point, before the Wolfspeed deal closes.

但如果我不得不猜測，如果事情保持目前的進程，我們很可能會在 2017 日曆年進行某種類型的併購交易，但肯定不會發生，至少在這一點上，在 Wolfspeed 交易完成之前。

And that exact timing, we are still in the evaluation stage on a number of different things.

而那個確切的時間，我們仍處於對許多不同事物的評估階段。

So I feel okay about the values out there.

所以我對那裡的價值觀感覺很好。

I would tell you that some people have a very high value on themselves and it doesn't mean those are the way we're going to start.

我會告訴你，有些人對自己有很高的價值，但這並不意味著我們要開始這樣做。

So there's lots of different properties out there, and it's just really which one fits best with our portfolio and our needs in the next couple of years.

因此，那裡有很多不同的房產，而這正是哪一個最適合我們的投資組合和我們未來幾年的需求。

Thanks again.

再次感謝。

Thank you.

謝謝你。

That concludes today's question-and-answer session.

今天的問答環節到此結束。

I'd like to turn the call back to Mike McDevitt for closing remarks.

我想把電話轉回給 Mike McDevitt 做閉幕詞。

Thank you for your time today.

謝謝你今天的時間。

We appreciate your interest and support and look forward to reporting our third-quarter results on April 25.

感謝您的關注和支持，並期待在 4 月 25 日報告我們的第三季度業績。

Good night.

晚安。

Good night.

晚安。

Ladies and gentlemen, thank you for participating in today's conference call.

女士們，先生們，感謝你們參加今天的電話會議。

This does conclude the program and you may all disconnect.

這確實結束了程序，你們都可以斷開連接。

Everyone have a great day.

每個人都有美好的一天。