祥茂光電 (AAOI) 2021 Q1 法說會逐字稿

Hello, and welcome to the Applied Optoelectronics' Q1 2021 Earnings Call. (Operator Instructions) Please note, today's event is being recorded. I'd now like to turn the conference over to your host today, Ms. Savarese. Ms. Savarese, please go ahead.

您好，歡迎參加應用光電 2021 年第一季財報電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想把今天的會議交給主持人薩瓦雷塞女士。薩瓦雷斯女士，請繼續。

Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's First Quarter 2021 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its first quarter 2021 financial results and provided its outlook for the second quarter of 2021. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for 1 year.

謝謝。我是應用光電公司投資者關係部門的 Lindsay Savarese，我很高興歡迎您參加 AOI 2021 年第一季財務業績電話會議。今天收盤後，AOI 發布新聞稿，宣布 2021 年第一季財務業績，並提供 2021 年第二季展望。新聞稿也可在該公司網站 ao-inc.com 上查閱。此次通話正在錄音並進行網路直播。錄音的連結可以在 AOI 網站的投資者關係部分找到，並將存檔 1 年。

Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q1 results, and Stefan will provide financial details and the outlook for the second quarter of 2021. A question-answer session will follow our prepared remarks.

參加今天電話會議的還有 AOI 創辦人、董事長兼執行長 Thompson Lin 博士；以及 AOI 財務長兼首席策略長 Stefan Murry 博士。 Thompson 將概述 AOI 第一季的業績，Stefan 將提供財務詳細資訊和 2021 年第二季的前景。在我們準備好的發言之後將進行問答環節。

Before we begin, I would like to remind you to review AOI's safe harbor statement. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks and by other similar expressions that convey uncertainty of future events or outcomes.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。在今天的電話會議上，管理階層將發表前瞻性聲明。這些前瞻性陳述涉及風險和不確定性以及假設和當前預期，可能導致公司的實際結果與此類前瞻性陳述中的預期有重大差異。在某些情況下，您可以透過相信、預期、估計、打算、預測、預期、計劃、可能、應該、能夠、會、將或認為等術語以及傳達未來不確定性的其他類似表達來識別前瞻性陳述事件或結果。

Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovations as well as statements regarding the company's outlook for the second quarter of 2021. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this earnings call to conform these statements to actual results or to changes in the company's expectations. More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2020.

前瞻性陳述還包括有關管理層對將我們的產品範圍擴展到新市場和客戶對我們的創新的反應相關的信念和期望的陳述，以及有關公司 2021 年第二季度前景的陳述。除非根據法律，我們沒有義務在本次財報電話會議之後以任何理由更新前瞻性陳述，以使這些陳述符合實際結果或公司預期的變更。有關可能影響公司業務的其他風險的更多信息，請參閱公司向 SEC 提交的報告的風險因素部分，包括公司截至 2020 年 12 月 31 日的 10-K 表格年度報告。

Also with the exception of revenue, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website.

此外，除收入外，今天討論的所有財務數據均基於非公認會計原則（Non-GAAP），除非另有特別說明。非公認會計原則財務指標不應被孤立考慮，也不能取代根據公認會計原則編制的結果。我們的 GAAP 和非 GAAP 指標之間的調整以及我們為何提出非 GAAP 財務指標的討論都包含在我們網站上的收益新聞稿中。

Before moving to the financial results, I'd like to announce that AOI management will virtually participate at the Needham Technology and Media Conference on May 20 and the Cowen Annual Technology Media and Telecom Conference on June 2. The presentations at these conferences will be webcast live and links to the webcast will be available on the Investor Relations section of the AOI website. We hope to have the opportunity to interact with many of you virtually. Additionally, I'd like to note the date of our second quarter 2021 earnings call is currently scheduled for August 5, 2021.

在公佈財務業績之前，我想宣布 AOI 管理層將虛擬參加 5 月 20 日舉行的 Needham 技術和媒體會議以及 6 月 2 日舉行的 Cowen 年度技術媒體和電信會議。這些會議上的演講將透過網路直播AOI 網站的投資者關係部分將提供現場直播和網路廣播的連結。我們希望有機會與你們中的許多人進行虛擬互動。此外，我想指出，我們 2021 年第二季財報電話會議的日期目前定於 2021 年 8 月 5 日。

Now I would like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics' Founder, Chairman and CEO. Thompson?

現在我想把電話轉給應用光電創辦人、董事長兼執行長林湯普博士。湯普森？

Thank you, Lindsay, and thank you for joining our call today. We delivered revenue and gross margins in line with our expectations and a narrow non-GAAP loss per share than we anticipated. Total revenue for the fourth quarter of $49.7 million grew 22.8% compared to the fourth quarter in the prior year and was down 5.8% sequentially. As we expected, we experienced generally soft Q1 conditions in the data center segment. We expect data center business to increase in the second half of the year as our customers begin for the upgrades and inventory issues around 100G normalized.

謝謝你，林賽，也謝謝你今天加入我們的電話會議。我們的收入和毛利率符合我們的預期，並且非公認會計原則每股虧損比我們預期的要小。第四季總營收為 4,970 萬美元，較去年第四季成長 22.8%，季減 5.8%。正如我們預期的那樣，我們在資料中心領域經歷了第一季的普遍疲軟狀況。我們預計，隨著客戶開始升級以及 100G 左右的庫存問題常態化，資料中心業務將在下半年成長。

Non-GAAP gross margin of 24.6% was in line with our guidance range of 23.5% to 25%. And non-GAAP net loss was narrow than our previous guidance, coming at $0.21 per share. In our CATV segment, the overall demand environment was strong as MSO, particularly in North America, continue to upgrade their networks. Total revenue for our CATV products increased to more than 4x this prior year levels and was increased 17% sequentially of a strong fourth quarter to $18.6 million. This is the highest quarterly revenue for this segment in over 3 years.

非 GAAP 毛利率為 24.6%，符合我們 23.5% 至 25% 的指引範圍。非 GAAP 淨虧損為每股 0.21 美元，低於我們先前的指引。在我們的有線電視領域，隨著 MSO（尤其是北美的 MSO）繼續升級其網絡，整體需求環境強勁。我們的 CATV 產品總營收成長至去年同期的 4 倍以上，第四季較上季成長 17%，達到 1,860 萬美元。這是該部門三年多來最高的季度收入。

Following the pause in 5G deployments from several of our China telecom customers, as we anticipated, we started to see a nice recovery in the fourth quarter. As a result, revenue from our telecom products of $4.5 million was up 75% year-over-year and 25% sequentially. Looking ahead, we believe China will continue to make investments in both their 5G and fiber-to-the-home infrastructure, and we believe we are well positioned to sell laser in both of these markets. We look forward to meeting again in person hopefully soon.

正如我們預期的那樣，在我們的幾個中國電信客戶暫停 5G 部署之後，我們開始在第四季度看到良好的復甦。因此，我們的電信產品收入為 450 萬美元，年增 75%，季增 25%。展望未來，我們相信中國將繼續對其 5G 和光纖到戶基礎設施進行投資，我們相信我們處於在這兩個市場銷售雷射的有利位置。我們期待很快再次見面。

With that, I will turn the call over to Stefan to review the details of our Q1 performance and outlook for Q2. Stefan?

接下來，我將把電話轉給 Stefan，以審查我們第一季業績的詳細資訊和第二季的前景。斯特凡？

Thank you, Thompson. As Thompson mentioned, we delivered revenue and gross margin in line with our expectations and a narrower non-GAAP loss per share than we anticipated. The market dynamics we anticipated played out as expected. While we continue to see softness in the data center market, we are pleased with the nice recovery we saw in the telecom market and continued strength in the CATV market. In total, for the first quarter, we secured 4 new design wins among 4 customers. Among these 4 design wins, 2 were in our data center business, including one with a new customer, which is a large U.S.-based social media-focused data center operator. One was in our 5G business and the other design win was in our FTTH segment.

謝謝你，湯普森。正如湯普森所提到的，我們的收入和毛利率符合我們的預期，並且非公認會計原則每股虧損比我們預期的要窄。我們預期的市場動態如預期般發生。雖然我們繼續看到資料中心市場疲軟，但我們對電信市場的良好復甦和有線電視市場的持續強勁感到高興。總的來說，第一季我們在 4 家客戶中贏得了 4 項新設計。在這 4 項設計勝利中，有 2 項涉及我們的資料中心業務，其中一項是與新客戶合作的，該客戶是一家總部位於美國的大型社群媒體資料中心營運商。其中一個是我們的 5G 業務，另一個設計勝利是我們的 FTTH 領域。

Total revenue for the first quarter of $49.7 million grew 22.8% compared to the first quarter in the prior year. Our Q1 revenue was down 5.8% sequentially and was in line with our guidance range of $47 million to $51 million. We currently believe that the headwinds we are seeing in the data center market related to the inventory normalization following the shift to working from home early last year will persist through the first half of the year and then begin improving in the second half and beyond as several of our customers begin to ramp 400G later in the year and inventory conditions in our 100G business fully normalized.

第一季總營收為 4,970 萬美元，比去年第一季成長 22.8%。我們第一季的營收季減 5.8%，符合我們 4,700 萬至 5,100 萬美元的指導範圍。我們目前認為，去年初轉向在家工作後，我們在資料中心市場看到的與庫存正常化相關的逆風將持續到今年上半年，然後在下半年及以後開始改善，因為我們的客戶在今年晚些時候開始增加400G，我們100G 業務的庫存狀況完全正常化。

On the 400G front, we have continued to work on qualifications and delivered samples to new customers during the quarter. We have also received several new inquiries from hyperscale customers for our 400G products, and we are working to deliver samples to these customers as well.

在 400G 方面，我們在本季度繼續進行資格認證並向新客戶提供樣品。我們也收到了超大規模客戶對我們的 400G 產品的一些新詢問，我們也正在努力向這些客戶提供樣品。

In the first quarter, 52% of our revenue was from our data center products, 38% was from our CATV products, with the remaining 10% from FTTH, telecom and other. Our data center revenue came in at $25.9 million compared with $33.3 million in the first quarter of the prior year. In the first quarter, 25% of our data center revenue was from our 40G transceiver products and 68% was from our 100G products.

第一季度，我們的營收52%來自資料中心產品，38%來自CATV產品，其餘10%來自FTTH、電信等。我們的資料中心收入為 2,590 萬美元，而去年第一季為 3,330 萬美元。第一季度，我們資料中心營收的 25% 來自我們的 40G 收發器產品，68% 來自我們的 100G 產品。

Turning to our CATV products segment. The overall demand environment remained strong as MSOs, particularly in North America, continue to upgrade their networks. We generated revenue of $18.6 million, up 17% sequentially and up 341% from $4.2 million in Q1 of the prior year. Our CATV performance represents a record for our first quarter, which is typically seasonally down and was just shy of our highest quarter in the company's history.

轉向我們的有線電視產品部門。隨著 MSO（尤其是北美的 MSO）持續升級其網絡，整體需求環境依然強勁。我們的營收為 1,860 萬美元，比上一季成長 17%，比去年第一季的 420 萬美元成長 341%。我們的有線電視業績創下了第一季的記錄，該季度通常會季節性下降，僅略低於公司歷史上最高的季度業績。

In our CATV business, we have seen some component shortages. We are working with our suppliers to improve delivery schedules for these critical components and, in some cases, adding additional suppliers. We do not anticipate that these shortages will hamper our ability to continue to grow revenue, but we may continue to have longer-than-usual backlogs for several quarters while we work to improve supply. We ended the first quarter with a strong backlog of CATV products, which we expect to continue to drive growth in this segment going forward.

在我們的有線電視業務中，我們發現了一些零件短缺的情況。我們正在與供應商合作，改進這些關鍵部件的交付時間表，並在某些情況下增加更多供應商。我們預計這些短缺不會妨礙我們繼續增加收入的能力，但在我們努力改善供應的同時，我們可能會在幾個季度內繼續出現比平常更長的積壓情況。第一季結束時，我們有大量的有線電視產品積壓，我們預計這將繼續推動該領域的成長。

As we anticipated, revenue from our telecom products of $4.5 million increased 28% sequentially and 75% from $2.6 million in Q1 of the prior year. Looking ahead, we believe China will continue to make investments in both their 5G and FTTH infrastructure, and we believe we are well positioned to sell lasers into both of these markets.

正如我們預期的那樣，我們的電信產品收入為 450 萬美元，比上一季的 260 萬美元增長 28%，比上年第一季的 260 萬美元增長 75%。展望未來，我們相信中國將繼續對其 5G 和 FTTH 基礎設施進行投資，我們相信我們有能力向這兩個市場銷售雷射。

Also notable during the quarter, we received our first 5G design win from a customer outside of China. We are excited to see that the success we have had with our China-based 5G customers is beginning to spread to other regions as 5G itself begins to ramp in other areas outside of China.

本季同樣值得注意的是，我們從中國以外的客戶那裡獲得了第一個 5G 設計勝利。我們很高興看到，隨著 5G 本身開始在中國以外的其他地區普及，我們在中國 5G 客戶身上的成功正開始擴展到其他地區。

For the first quarter, our top 10 customers represented 90.5% of revenue compared to 84.8% in Q1 of the prior year. This increase in revenue among the top 10 customers is largely related to the strong results in CATV as several customers in this segment contributed significantly to the increased revenue this quarter. We had 4 10% or greater customers in the first quarter, 2 of which were in the data center market and 2 of which were in our CATV market. These customers contributed 19%, 16%, 16% and 14% of total revenue, respectively.

第一季度，我們的十大客戶佔營收的 90.5%，去年第一季為 84.8%。前 10 名客戶的收入成長很大程度上與 CATV 的強勁業績有關，因為該領域的幾家客戶對本季度收入的成長做出了重大貢獻。第一季我們有 4 個 10% 或更多的客戶，其中 2 個在資料中心市場，2 個在我們的 CATV 市場。這些客戶分別貢獻了總收入的19%、16%、16%和14%。

In Q1, we generated non-GAAP gross margin of 24.6%, which was in line with our guidance range of 23.5% to 25% and compared to 19.5% in Q1 of the prior year. Total non-GAAP operating expenses in the first quarter were $20.6 million or 41.4% of revenue compared with $19.4 million or 48% of revenue in Q1 of the prior year. As we mentioned on the Q4 call, we experienced additional costs during the first quarter due to the historic storm that hit Texas in February, which totaled $0.5 million.

第一季度，我們的非 GAAP 毛利率為 24.6%，符合我們 23.5% 至 25% 的指導範圍，而上一年第一季為 19.5%。第一季非 GAAP 營運支出總額為 2,060 萬美元，佔營收的 41.4%，而上年第一季為 1,940 萬美元，佔營收的 48%。正如我們在第四季度電話會議中提到的，由於 2 月襲擊德克薩斯州的歷史性風暴，我們在第一季經歷了額外成本，總計 50 萬美元。

Non-GAAP operating loss in the first quarter was $8.4 million compared to an operating loss of $11.5 million in Q1 the prior year. GAAP net loss for Q1 was $15.6 million or a loss of $0.59 per basic share compared with a GAAP net loss of $16.8 million or a loss of $0.83 per basic share in Q1 of 2020. On a non-GAAP basis, net loss for Q1 was $5.5 million or a loss of $0.21 per basic share, which was narrower than our guidance range of a loss of $5.9 million to $7.3 million or a loss in the range of $0.23 to $0.28 per basic share and compares to a net loss of $8.8 million or a loss of $0.44 per basic share in Q1 of the prior year. The basic shares outstanding used for computing the net loss in Q1 were 26.4 million.

第一季非 GAAP 營運虧損為 840 萬美元，而上年第一季營運虧損為 1,150 萬美元。第一季GAAP 淨虧損為1,560 萬美元，即每股基本股虧損0.59 美元，而2020 年第一季GAAP 淨虧損為1,680 萬美元，即每股基本股虧損0.83 美元。以非GAAP 計算，第一季季度淨虧損為每股基本股虧損 550 萬美元或 0.21 美元，低於我們指導範圍的虧損 590 萬美元至 730 萬美元或每股基本股虧損 0.23 至 0.28 美元，而淨虧損為 880 萬美元或上一年第一季每股基本股虧損0.44 美元。用於計算第一季淨虧損的已發行基本股為2,640萬股。

Now turning to the balance sheet. We ended the first quarter with $49.3 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $50.1 million at the end of the fourth quarter and reflects $15.2 million in cash used for operations. As of March 31, we had $106.3 million in inventory compared to $110.4 million at the end of Q4. Inventory decreased due to utilization of inventory as orders, especially for telecom and CATV products increased. This inventory reduction is consistent with our long-term plan as we focus on rationalizing inventory levels.

現在轉向資產負債表。截至第一季末，我們的現金、現金等價物、短期投資和限制性現金總額為 4,930 萬美元。相比之下，第四季末為 5,010 萬美元，反映出用於營運的現金為 1,520 萬美元。截至 3 月 31 日，我們的庫存為 1.063 億美元，而第四季末為 1.104 億美元。由於訂單（尤其是電信和有線電視產品）的訂單增加，庫存利用率下降。庫存減少符合我們的長期計劃，因為我們專注於合理化庫存水準。

We made a total of $2.7 million in capital investments in the quarter, including $2.3 million in production equipment and machinery and $0.3 million on construction and building improvements. The construction on our new China facility is largely complete, with all heavy construction done. In total, we currently expect 2021 CapEx to be approximately $16 million. Although as we have noted in prior years, there can be significant variability in this estimate as the year progresses.

本季我們總共進行了 270 萬美元的資本投資，其中包括 230 萬美元的生產設備和機械投資以及 30 萬美元的建築和建築改進投資。我們新的中國工廠的建設已基本完成，所有重型施工均已完成。總的來說，我們目前預計 2021 年的資本支出約為 1,600 萬美元。儘管正如我們在前幾年所指出的，隨著時間的推移，這一估計可能會出現重大變化。

I would also like to provide a quick update on the at-the-market offering that we announced in February of 2020. To date, we have completed this program, raising the total of $55 million in gross proceeds, including $14.7 million raised in Q1. As we disclosed in February, we have initiated a new at-the-market offering. To date, we have raised $0.6 million under this new program. We intend to use these proceeds to continue to make investments in the business, including new equipment and machinery for production and research and development use.

我還想簡要介紹一下我們在 2020 年 2 月宣布的市場發行計劃。迄今為止，我們已經完成了該計劃，籌集了總計 5500 萬美元的總收益，其中包括第一季籌集的 1470 萬美元。正如我們在二月所揭露的，我們已經啟動了一項新的市場發行。迄今為止，我們已根據這項新計劃籌集了 60 萬美元。我們打算利用這些收益繼續對業務進行投資，包括用於生產和研發的新設備和機械。

Moving now to our Q2 outlook. We expect Q2 revenue to be between $51 million and $56 million and non-GAAP gross margin to be in the range of 25.5% to 27.5%. Non-GAAP net loss is expected to be in the range of $3.8 million to $5.6 million and non-GAAP loss per basic share between $0.14 and $0.21 using weighted average basic share count of approximately 27.2 million shares.

現在轉向我們對第二季的展望。我們預計第二季營收將在 5,100 萬美元至 5,600 萬美元之間，非 GAAP 毛利率將在 25.5% 至 27.5% 之間。根據加權平均基本股數約為 2,720 萬股，預計非 GAAP 淨虧損將在 380 萬至 560 萬美元之間，非 GAAP 每股基本股虧損將在 0.14 至 0.21 美元之間。

With that, I will turn it back over to the operator for the Q&A session. Operator?

這樣，我會將其轉回給操作員進行問答環節。操作員？

(Operator Instructions) And the first question comes with -- from David Kang with B. Riley.

（操作員說明）第一個問題來自 David Kang 和 B. Riley。

This is Danny on for Dave. I was wondering if you guys could talk about the competitive landscape in 400G that you guys are seeing.

這是戴夫的丹尼。我想知道你們能否談談你們所看到的 400G 的競爭格局。

Yes. I mean, it's pretty consistent with what we've said in prior calls. Overall, I don't think there's any significant change from the landscape at 100G. The competitors that we saw there tend to be continuing to be what we expect to be the strongest competitors at 400 gig as well.

是的。我的意思是，這與我們在之前的電話中所說的非常一致。總的來說，我認為 100G 的情況沒有任何重大變化。我們在那裡看到的競爭對手往往仍然是我們預期的 400 場演出中最強大的競爭對手。

Got it. And I guess on the chip shortage situation, I was wondering, you guys said that you aren't expecting it to negatively impact revenues. But I guess we're wondering how long you guys kind of expect that to persist?

知道了。我想關於晶片短缺的情況，我想知道，你們說你們不認為它會對收入產生負面影響。但我想我們想知道你們預計這種情況會持續多久？

Well, it's a little hard to say precisely. I think it's fair to say that we expect it to persist at least a couple more quarters. And you're correct that we aren't expecting it to result in reduced revenues. We expect to continue to be able to grow revenue, but we're just sort of capped in the rate at which we can grow based on component availability. It probably over the next couple of quarters. Beyond that, it becomes really hard to say. Our suppliers are telling us that they're adding production capacity and ramping up. And if all those plans come to fruition as we expect, then I think we're probably looking at maybe 2 quarters. If it lasts a little longer than that, it may stretch beyond that.

嗯，具體來說有點難。我認為可以公平地說，我們預計這種情況至少會持續幾個季度。您是對的，我們預計這不會導致收入減少。我們期望能夠繼續增加收入，但我們的成長速度受到組件可用性的限制。可能會在接下來的幾個季度內發生。除此之外，就很難說了。我們的供應商告訴我們，他們正在增加產能並提高產能。如果所有這些計劃都如我們預期的那樣實現，那麼我認為我們可能需要兩個季度的時間。如果它持續的時間比這個長一點，它可能會超出這個範圍。

We're also up against I guess, you could say, a good problem to have. I mean the cable TV business is growing very nicely for us. We're seeing good demand picture really through the end of this year and into next year. And so it's harder for our suppliers to catch up because they're getting hit by higher demand than we've seen certainly in the last several years. So it's a combination of sharply increased demand with somewhat reduced supply due to COVID considerations. And the 2 of those things together are what's causing that shortage.

我想，你可以說，我們還面臨一個好問題。我的意思是有線電視業務對我們來說成長得非常好。從今年年底到明年，我們確實看到了良好的需求前景。因此，我們的供應商很難迎頭趕上，因為他們受到的需求比我們過去幾年所看到的要高。因此，由於新冠疫情的考慮，需求急劇增加，但供應減少。而這兩件事加在一起就是造成短缺的原因。

Got it. And you said into next year. So does that imply throughout 2022 you'll also see this momentum from CATV?

知道了。你說要等到明年。那麼這是否意味著整個 2022 年您也會看到 CATV 的這種勢頭？

Right now, we're pretty much booked up in CATV through the end of the year. And there's no indication that that's going to slow down next year. It's obviously being a few quarters out, that's still a little bit murky. But I think the MSOs are really at the beginning of their upgrade process. Some of them have yet to even start the upgrade process in earnest. So I think it's reasonable to expect that, that process will take several years to complete. And so yes, I believe that we'll see pretty strong CATV performance into 2022, not just this year.

目前，我們在年底前的有線電視台預訂已經差不多滿了。沒有跡象表明明年這種情況會放緩。顯然已經過去了幾個季度，但仍然有點模糊。但我認為 MSO 確實正處於升級過程的開始階段。其中一些甚至還沒有認真開始升級過程。因此，我認為可以合理地預期該過程將需要幾年時間才能完成。所以，是的，我相信我們將在 2022 年看到相當強勁的 CATV 表現，而不僅僅是今年。

And the next question comes from Tom Diffely with D.A. Davidson.

下一個問題來自 Tom Diffely 和 D.A.戴維森。

I wanted to get a little more color on just the data center recovery in the second half. I know a quarter ago, you thought maybe it'd be in the second quarter, but just what are the puts and takes and what kind of gives you the confidence level?

我想對下半年的資料中心恢復情況有更多了解。我知道一個季度前，您認為可能會在第二季度，但是看跌期權和看跌期權是什麼，以及什麼樣的給您帶來信心水平？

Yes. I mean I don't think anything is really wholesale changed in our outlook. I think the inventory -- the over-inventory situation, particularly with one of our large hyperscale customers, is just taking a little bit longer to resolve itself than we earlier thought. We expect it to recover at some point in Q2, but it's probably a little later than we earlier anticipated.

是的。我的意思是，我認為我們的觀點沒有任何真正的徹底改變。我認為庫存——庫存過剩的情況，特別是我們的一個大型超大規模客戶，解決問題的時間比我們之前想像的要長一點。我們預計它會在第二季的某個時候恢復，但可能比我們之前的預期要晚一些。

And so for the total Q2 revenue generation from -- at least from that customer, it's a little bit less than what we had earlier expected. It's not a big change in what we had earlier expected. I think what we talked about on the last call remains true today, which is that the really good growth that we expect to see is going to come from the 400-gig cycle as that starts to take hold with several of our customers.

因此，就第二季的總收入而言——至少是該客戶的總收入，比我們之前的預期要少一些。這與我們之前的預期相比並沒有太大變化。我認為我們在上次電話會議上談到的內容今天仍然適用，那就是我們期望看到的真正良好的增長將來自 400 演出週期，因為它開始在我們的一些客戶中佔據主導地位。

And on that front, as I mentioned in our prepared remarks, we're seeing increased interest. We had several new customers come and approach us during the quarter, looking for samples, looking to begin qualification efforts. The qualification efforts that were already ongoing in 400-gig continue to go well, and the discussions with the customers continue to indicate to us that we can expect a successful conclusion from those efforts. And so we're excited about 400-gig ramping in the second half of the year.

在這方面，正如我在準備好的發言中提到的，我們看到人們的興趣增加。本季我們有幾位新客戶來找我們，尋找樣品，希望開始資格認證工作。已經在 400 台現場進行的資格認證工作繼續順利進行，與客戶的討論繼續向我們表明，我們可以期待這些工作會成功。因此，我們對今年下半年 400 場演出的成長感到興奮。

The inventory situation that we talked about with -- again, with one of our large customers, that should also resolve itself late in the second quarter for a second half ramp. And then as I mentioned, cable TV, telecom, even fiber-to-the-home in China seem to be looking very good in the second half as well.

我們再次與我們的一位大客戶討論過的庫存情況，也應該在第二季末自行解決，下半年會出現成長。正如我所提到的，中國的有線電視、電信、甚至光纖到府似乎在下半年也表現得非常好。

Okay. Great. And then maybe if you're willing, a little more color on the chip shortage, are there particular types of chips or how would you characterize where the shortage is that's most acute, custom, off-the-shelf, whatever details you might be able to provide?

好的。偉大的。然後，如果您願意的話，也許可以對晶片短缺問題進行更多描述，是否有特定類型的晶​​片，或者您如何描述短缺最嚴重的地方，定制的，現成的，無論您可能是什麼細節能提供嗎？

Yes. It's all off-the-shelf stuff that we're seeing shortages on. And it's -- there's no easy way to characterize it. I would say, in general, what we're seeing shortages on are not necessarily brand-new cutting-edge chips. In some cases, it's actually kind of older technology that I think we're just seeing unprecedented, maybe not unprecedented, but certainly higher demand than we've seen in the last several years. And I think it got -- some of our suppliers were caught maybe a little bit by surprise by that.

是的。這些都是現成的東西，我們看到短缺。沒有簡單的方法來描述它。我想說，總的來說，我們看到的短缺不一定是全新的尖端晶片。在某些情況下，它實際上是一種較舊的技術，我認為我們只是看到了前所未有的技術，也許不是史無前例的，但肯定比我們過去幾年看到的需求更高。我認為我們的一些供應商可能對此感到有點驚訝。

And at the same time, fab capacity and other things are very, very tight as we've seen in the automotive industry and across other calls that we've listened in on just this last earnings cycle. And it really kind of runs the gamut across multiple different chipsets and things across the industry. But I think the one common trend is that there's just a very, very tight fab capacity.

同時，正如我們在汽車行業以及我們在上一個盈利週期中聽到的其他電話中所看到的那樣，晶圓廠產能和其他方面都非常非常緊張。它確實涵蓋了整個行業的多種不同晶片組和事物。但我認為一個共同的趨勢是晶圓廠產能非常非常緊張。

So whereas in prior times, a supplier of one of these components might have been able to drop a wafer production run into a schedule that already existed because there were some gaps in there some slack time, now that slack is just nonexistent. And so it's taking longer for them to get new wafer starts going and therefore, longer to ramp up that production than it had been in years past.

因此，在以前，這些組件之一的供應商可能能夠將晶圓生產運行放入已經存在的時間表中，因為在一些鬆弛時間中存在一些間隙，但現在鬆弛時間已經不存在了。因此，他們需要更長的時間才能開始生產新的晶圓，因此，與過去幾年相比，提高產量的時間也更長。

And the next question comes from Sam Peterman with Craig-Hallum Capital.

下一個問題來自 Craig-Hallum Capital 的 Sam Peterman。

This is Sam on for Richard. I just want to ask a little bit more on the data center. It sounds like your largest -- I guess, first I want to ask that if your largest data center customer in past quarters was a 19% customer this quarter, is that's fair to think about it? And then if that's the case, on a dollar basis, that's the lowest sales you've had there. About 2 years, it looks like I'm curious how you would see that -- see sales to that customer trending over the course of the year as data center recovers.

這是理查德的山姆。我只是想多問一些關於資料中心的問題。這聽起來像是你們最大的——我想，首先我想問一下，如果你們過去幾季最大的資料中心客戶是本季 19% 的客戶，那麼考慮一下公平嗎？如果是這樣的話，以美元計算，這就是你在那裡的最低銷售額。大約兩年後，我很好奇您會如何看待這一情況——隨著資料中心的恢復，該客戶的銷售額在一年中呈趨勢。

Yes. So that customer was not the 19% customer. And as we've talked about, one of our customers has an over-inventory situation. We've talked about that in the last couple of calls, and I reiterated it in our prepared remarks and again on one of the earlier questions. So I won't waste everybody's time going over that once again. But we do anticipate that, that will be resolved here in the second quarter and portend the second half ramp.

是的。所以那個客戶不是 19% 的客戶。正如我們所討論的，我們的一位客戶出現了庫存過剩的情況。我們在過去幾次通話中討論了這一點，我在準備好的發言中重申了這一點，並再次就之前的問題之一重申了這一點。所以我不會再浪費大家的時間來討論這個問題了。但我們確實預計，這個問題將在第二季度得到解決，並預示著下半年的成長。

Okay. And then on telecom, I'm curious with 5G starting to roll out more in the second half, what kind of upside you think you could seize of that business in the second half? And could you talk about how we expect that to ramp between the second half of 2021 and then in 2022, whether there's kind of a step-up at some point or if it's kind of a linear ramp from your perspective? Any color there would be helpful.

好的。然後在電信方面，我很好奇下半年 5G 會開始更多地推出，您認為下半年可以抓住該業務的哪些優勢？您能否談談我們預計這一數字在2021 年下半年到2022 年之間會如何增長？從您的角度來看，是否會在某個時刻出現某種程度的上升，或者是否會呈線性增長？任何顏色都會有幫助。

Well, I think 2021, I think we expect a stronger second half than first half. Certainly, we've already started to see some incremental improvement, but we're not back to the levels where we were, let's say, middle part of last year. And so I think there's some room to grow there. We're very excited about the progress that we made in 5G. And also, as I mentioned in our prepared remarks, the FTTH business in China also seems to be picking up.

嗯，我認為 2021 年，我們預計下半年會比上半年更強。當然，我們已經開始看到一些漸進的改善，但我們還沒有回到去年中期的水平。所以我認為那裡還有一些發展空間。我們對 5G 領域的進展感到非常興奮。而且，正如我在準備好的發言中提到的，中國的 FTTH 業務似乎也在回升。

But more exciting perhaps than that within China is the fact that we have our first design win with a 5G customer outside of China. And I know that's been a question that's come up a lot over the last several quarters on these calls is, well, okay, you guys seem to be doing well in China, but what about the rest of the world. And I think that provides some tangible evidence that we're able to be successful with customers outside of the China market as well, and that's also very exciting.

但也許比在中國境內更令人興奮的是，我們贏得了中國境外 5G 客戶的首個設計勝利。我知道過去幾季在這些電話會議中經常出現的一個問題是，好吧，你們似乎在中國做得很好，但世界其他地方呢？我認為這提供了一些切實的證據，表明我們也能夠在中國市場以外的客戶中取得成功，這也非常令人興奮。

And the next question comes from Tim Savageaux with Northland Capital Markets.

下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

Couple of questions. So as you look at your Q2 guide and you're guiding up kind of mid-high single digits sequentially. Given the data center commentary, it sounds like you expect cable TV to be the primary driver of that sequential growth, maybe a little telecom as well or as you look across your segments, how do you see that?

有幾個問題。因此，當您查看第二季度指南時，您會按順序引導中高個位數。鑑於資料中心的評論，聽起來您預計有線電視將成為連續成長的主要驅動力，也許還有一點電信，或者當您縱觀各個細分市場時，您對此有何看法？

Yes. I think the cable TV, again, I think we can see some revenue growth in there. Telecom, again, we're -- remains to be seen how much that's going to grow in the next quarter, but certainly, the trends are good so far. And the data center, it really depends pretty sensitively on how fast -- and particularly the customer that we've seen this inventory issue with how fast they can resolve that inventory. We believe it will be at some point in this quarter. But whether it happens in mid-quarter or late in the quarter, we'll kind of set the trajectory in terms of how much revenue we can actually book in this quarter. And so that's kind of the wildcard in the forecasting picture.

是的。我認為有線電視，我認為我們可以看到那裡的一些收入成長。電信領域，下個季度的成長幅度還有待觀察，但可以肯定的是，到目前為止趨勢良好。對於資料中心來說，它實際上非常敏感地取決於速度——尤其是我們看到這個庫存問題的客戶，以及他們解決庫存的速度。我們相信這將在本季的某個時候發生。但無論它發生在季度中期還是季度末，我們都會根據本季實際可以預訂的收入來設定軌跡。這就是預測圖中的通配符。

Got it. And just a follow-up on design wins. I think you said 2 data center and 1 fiber-to-the-home and 1 5G. And correct me if I'm wrong there. But in the data center, is the customer you called out there, is that a new customer for Applied Opto or perhaps a former customer?

知道了。而僅是設計的後續行動就獲勝了。我想你說的是 2 個資料中心、1 個光纖到戶和 1 個 5G。如果我錯了，請糾正我。但在資料中心，您打電話給的客戶是 Applied Opto 的新客戶還是以前的客戶？

No, it is. It's a brand-new customer that we haven't sold to before. It's a California-based social media-focused data center operator.

不，是的。這是我們以前沒有銷售過的全新客戶。它是一家總部位於加州的專注於社群媒體的資料中心營運商。

And this concludes our question-and-answer session. I would like to turn the conference back over to Thompson Lin for any closing comments.

我們的問答環節到此結束。我想將會議轉回湯普森林以徵求結束意見。

Okay, and thank you for joining us today. As always, thank you for all investors, customers and employees for your continued support, and we look forward to virtually see many of you at our upcoming investment conference.

好的，感謝您今天加入我們。一如既往，感謝所有投資者、客戶和員工的持續支持，我們期待在即將舉行的投資會議上見到你們中的許多人。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。