祥茂光電 (AAOI) 2020 Q3 法說會逐字稿

Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics' Third Quarter 2020 Earnings Conference Call. (Operator Instructions) Please note that this call is being recorded.

午安.我將擔任您的會議操作員。在此，我歡迎大家參加應用光電2020年第三季財報電話會議。 （操作員說明）請注意，此通話正在錄音。

I would now like to turn the call over to Monica Gould, Investor Relations of AOI. Ms. Gould, you may begin.

我現在想將電話轉給 AOI 投資者關係部門的莫妮卡·古爾德 (Monica Gould)。古爾德女士，您可以開始了。

Thank you. I'm Monica Gould, Investor Relations for Applied Optoelectronics and I'm pleased to welcome you to AOI's Third Quarter 2020 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its third quarter 2020 financial results and provided its outlook for the fourth quarter of 2020. 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 Monica Gould，很高興歡迎您參加 AOI 2020 年第三季財務業績電話會議。今天收盤後，AOI 發布新聞稿，宣布其 2020 年第三季財務業績，並提供了 2020 年第四季的展望。新聞稿還可在該公司網站 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 Q3 results and Stefan will provide financial details and the outlook for the fourth quarter of 2020. A question-and-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 第三季的業績，Stefan 將提供財務詳細資訊和 2020 年第四季的前景。在我們準備好的發言之後將舉行問答環節。

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 fourth quarter of 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的信念和期望的陳述以及客戶對我們創新的反應，以及有關公司 2020 年第四季度前景的陳述。

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 those statements to actual results or to changes in the company's expectations.

除法律要求外，我們不承擔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變化的義務。

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, 2019, and the company's quarterly report on Form 10-Q for the period ended June 30, 2020.

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 2019 年 12 月 31 日的 10-K 表格年度報告，以及公司截至2020 年6 月30 日止期間的10-Q 表格季度報告。

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 present at the Needham Security, Networking and Communications Conference on November 17; the Raymond James Technology Conference on December 8; and the Cowen Networking and Cybersecurity Conference on December 15; and the MKM Partners Conference on December 16.

在公佈財務業績之前，我想宣布 AOI 管理層將以虛擬方式出席 11 月 17 日舉行的 Needham 安全、網路和通訊會議； 12 月 8 日舉行的 Raymond James 技術大會；以及 12 月 15 日舉行的 Cowen 網路和網路安全會議；以及 12 月 16 日舉行的 MKM 合作夥伴會議。

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.

這些會議上的演講將進行網路直播，並且網路直播的連結將在 AOI 網站的投資者關係部分提供。我們希望有機會與你們中的許多人進行虛擬互動。

Additionally, I'd like to note that the date of our fourth quarter 2020 earnings call is currently scheduled for February 25, 2021. Now I would like to turn the call over to Dr. Thompson Lin, Applied Optoelectronics' Founder, Chairman and CEO. Thompson?

此外，我想指出的是，我們2020 年第四季財報電話會議的日期目前定於2021 年2 月25 日。現在我想將電話會議轉給應用光電公司創辦人、董事長兼執行長Thompson Lin 博士。湯普森？

Thank you, Monica, and thank you, everybody, for joining us today. Our third quarter results were driven by good growth in each of our 3 major business segments.

謝謝莫妮卡，也謝謝大家今天加入我們。我們第三季的業績是由三大業務部門的良好成長所推動的。

We achieved Q3 revenue of $76.6 million, which was within our guidance of $76 million to $83 million. Q2 revenue grew 66% compared to the third quarter last year and 70% sequentially, but was at the low end of our guidance range as we began to see some slowing in orders from certain of our data center customers in the later part of the third quarter. We believe that this slowdown in orders is related to inventory normalization following the surge in demand that was driven by the shift to working from home earlier in the year.

我們第三季的營收為 7,660 萬美元，在我們 7,600 萬至 8,300 萬美元的指導範圍內。 Q2 revenue grew 66% compared to the third quarter last year and 70% sequentially, but was at the low end of our guidance range as we began to see some slowing in orders from certain of our data center customers in the later part of the third四分之一.我們認為，訂單放緩與今年早些時候在家工作的轉變推動需求激增後庫存正常化有關。

Non-GAAP gross margin of 27.4% was above our guidance range of 25% to 26.5% due to favorable product mix coupled with benefit from our cost reduction action. Non-GAAP net loss of $0.06 per share was in line with our expectations of a loss of $0.20 to a loss of $0.03.

由於有利的產品組合以及我們的成本削減行動的好處，27.4% 的非 GAAP 毛利率高於我們 25% 至 26.5% 的指導範圍。非 GAAP 每股淨虧損 0.06 美元，符合我們預期的虧損 0.20 美元至 0.03 美元。

Similar to Q2, we saw good demand in the data center market during most of the third quarter. Toward the end of Q3, we started to see some softness from certain payers and customers due to what we believe was digestion of previous orders. And based on what we see today, we expect headwinds in Q4 as our hyperscale customers adjust their inventory levels downward in response to supply chain disruption that currently appear to be less severe than seen earlier in the year.

與第二季類似，我們在第三季的大部分時間裡看到了資料中心市場的良好需求。在第三季末，我們開始看到某些付款人和客戶表現出一些疲軟，因為我們認為這是對先前訂單的消化。根據我們今天看到的情況，我們預計第四季度會遇到阻力，因為我們的超大型客戶會下調庫存水平，以應對供應鏈中斷，目前供應鏈中斷的情況似乎沒有今年早些時候那麼嚴重。

Our customer relationship and market share position remains strong and we believe the continued need of higher bandwidth within the data center would drive long-term growth. Additionally, we expect continuing favorable product mix and our cost reduction efforts to further improve our gross margin in Q4.

我們的客戶關係和市佔率地位仍然強勁，我們相信資料中心內對更高頻寬的持續需求將推動長期成長。此外，我們預計持續有利的產品組合和降低成本的努力將進一步提高第四季的毛利率。

We are pleased to report that we recently secured our second technical qualification on 400G product with a sizable Tier 2 data center operator who is an existing customer, and we are encouraged by the customer interest we are seeing from this product. This qualification will be recorded as a design win once we receive an order from this customer for the 400G product which we expect will happen in this quarter.

我們很高興地報告，我們最近獲得了一家規模較大的二級資料中心營運商的400G 產品技術資格，該營運商是現有客戶，我們看到客戶對該產品的興趣，這讓我們感到鼓舞。一旦我們收到該客戶的 400G 產品訂單（我們預計將在本季度完成），該資格將被記錄為設計勝利。

During the quarter, we've had 7 design wins with 6 customers. 2 of the design wins were in our CATV segment, 3 in the datacenter segment and 1 in our telecom segment. Similar to Q2, we continue to see broad-based demand for our 100G products. Total revenue for 100G products increased almost 350% from Q3 of last year and 13% sequentially.

本季度，我們贏得了 6 位客戶的 7 項設計。其中 2 項設計勝利來自我們的 CATV 領域，3 項來自資料中心領域，1 項來自我們的電信領域。與第二季類似，我們繼續看到對我們的 100G 產品的廣泛需求。 100G 產品的總營收較去年第三季成長近 350%，較上季成長 13%。

In our CATV segment, the overall demand environment continued to be strong. Total revenue for our CATV products increased 32% year-over-year and 90% sequentially. As we anticipated, revenue from our telecom products nearly tripled year-over-year in Q3 to a record $8.9 million, almost 44% sequentially driven by increased 5G demand in China. However, recently, we have been informed by several China telecom customers that 5G deployment, they have been paused by several large network operators while they replan their supply chain following a disruption caused by Huawei's component shortage. We expect this pause will lead into Q1 and therefore expect a reduction in telecom demand in Q4.

在我們的有線電視領域，整體需求環境持續強勁。我們的 CATV 產品總收入年增 32%，較上季成長 90%。正如我們預期的那樣，第三季度我們的電信產品收入同比增長近兩倍，達到創紀錄的 890 萬美元，在中國 5G 需求增長的推動下，環比增長近 44%。然而，近期，我們從多家中國電信客戶處獲悉，由於華為零零件短缺造成供應鏈中斷，多家大型網路營運商暫停了5G部署，並重新規劃供應鏈。我們預計這種暫停將持續到第一季度，因此預計第四季度電信需求將減少。

Overall, we remain optimistic about telecom spend in 2021 as we believe that China deployment will resume with vigor after the Lunar New Year. We remain confident that our technology leadership in advanced optics gives us a strong competitive position to address our customer needs as demand improves.

總體而言，我們對 2021 年的電信支出保持樂觀，因為我們相信中國的部署將在農曆新年後強勁恢復。我們仍然相信，我們在先進光學領域的技術領先地位使我們具有強大的競爭地位，可以隨著需求的改善滿足客戶的需求。

We'll continue to manage the business efficiently to drive long-term growth and shareholder value.

我們將繼續有效地管理業務，以推動長期成長和股東價值。

Before I turn the call over to Stefan, I want to emphasize that we continue to prioritize the health, safety and well-being of our employees as well as that of our customers and suppliers. I'm proud of the hard work that AOI team continued to deliver. Thank you for your exceptional team work during this challenging period.

在將電話轉給 Stefan 之前，我想強調，我們將繼續優先考慮員工以及客戶和供應商的健康、安全和福祉。我為 AOI 團隊持續付出的辛勤工作感到自豪。感謝你們在這個充滿挑戰的時期所做的出色的團隊合作。

With that, I will turn the call over to Stefan to review the details of our Q3 performance and outlook for Q4. Stefan?

接下來，我將把電話轉給 Stefan，以審查我們第三季業績的詳細資訊和第四季的前景。斯特凡？

Thank you, Thompson. As Thompson mentioned, our Q3 results were broadly in line with our expectations and reflect continued progress on our revenue and customer diversification efforts and improvement in our gross margin. We saw good growth across each of our 3 major business segments.

謝謝你，湯普森。正如湯普森所提到的，我們第三季的業績大致符合我們的預期，反映了我們在收入和客戶多元化方面的持續進展以及毛利率的改善。我們的三大業務領域均取得了良好的成長。

Similar to Q2, we saw good demand in the data center market during the third quarter. Notably, our 100G revenue increased nearly 350% from Q3 last year and 13% sequentially. However, later in the quarter, we started to see some softness in deliveries as our customers began to catch up with the surge in demand in the first half of the year and focused on digesting previous orders. Based on what we see today, we expect headwinds in Q4 as certain of our hyperscale customers adjust their inventory to more normal levels.

與第二季類似，第三季資料中心市場需求良好。值得注意的是，我們的 100G 營收較去年第三季成長近 350%，比上一季成長 13%。然而，在本季度晚些時候，我們開始看到交貨量出現一些疲軟，因為我們的客戶開始趕上上半年需求的激增，並專注於消化先前的訂單。根據我們今天看到的情況，我們預計第四季度會出現阻力，因為我們的某些超大規模客戶會將庫存調整到更正常的水平。

We anticipate that revenue will be down sequentially in Q4. However, we believe that in the next few quarters, as inventory at our customers returns to normal level, we will resume revenue growth in this segment. We continue to have good relationships with our data center customers. We believe the fundamental needs for higher bandwidth within hyperscale data center will drive long-term growth, particularly during this time as our customers remain focused on improving network performance in light of the increased traffic related to the shift towards working from home. And we expect our gross margins to further benefit in Q4 from continued favorable product mix and our cost reduction efforts.

我們預計第四季營收將環比下降。然而，我們相信，在接下來的幾個季度，隨著客戶的庫存恢復到正常水平，我們將恢復該領域的收入成長。我們繼續與資料中心客戶保持良好的關係。我們相信，超大規模資料中心對更高頻寬的基本需求將推動長期成長，特別是在這段時間內，因為我們的客戶仍然專注於提高網路效能，因為與在家工作的轉變相關的流量增加。我們預計，由於持續有利的產品組合和降低成本的努力，我們的毛利率將在第四季度進一步受益。

Turning to our quarterly performance. Total revenue for the third quarter of $76.6 million was in line with our guidance range. Revenue increased 66% year-over-year and 17% sequentially, driven by growth in all of our business segments. Our data center revenue rose 5% sequentially and 63% year-over-year to $55.3 million and accounted for 72% of our total revenue.

轉向我們的季度業績。第三季總收入為 7,660 萬美元，符合我們的指導範圍。在我們所有業務部門成長的推動下，營收年增 66%，較上季成長 17%。我們的資料中心營收季增 5%，年增 63%，達到 5,530 萬美元，占我們總收入的 72%。

In the third quarter, 28% of our data center revenue was from our 40G transceiver products and 68% was from our 100G products. We are pleased with our progress on our customer diversification efforts. Overall for the quarter, our top 10 customers represented 84.9% of revenue, which compares to 88.3% in Q3 of last year. We had 2 10% or greater customers in the quarter, both of which were in the datacenter segment. These customers contributed 40% and 10% of total revenue, respectively.

第三季度，我們資料中心營收的28%來自我們的40G收發器產品，68%來自我們的100G產品。我們對我們在客戶多元化方面取得的進展感到高興。整體而言，本季我們的十大客戶佔營收的 84.9%，而去年第三季為 88.3%。本季我們有 2 個 10% 或更多的客戶，這兩個客戶都屬於資料中心領域。這些客戶分別貢獻了總收入的40%和10%。

During the third quarter, in addition to the 10% or greater customers, we had 3 other customers who each contributed between 5% and 10% of total revenue. 2 of these customers were in our datacenter segment and 1 in CATV. This compared to 2 10% or greater customers and 1 customer between 5% and 10% in Q3 of last year. Our top 5 customers represented 75% of our revenue compared to 82% in Q3 of last year.

第三季度，除了 10% 或以上的客戶外，我們還有其他 3 位客戶，每位客戶貢獻了總收入的 5% 至 10%。其中 2 位客戶在我們的資料中心部門，1 位客戶在 CATV。相比之下，去年第三季有 2 個 10% 或以上的客戶和 1 個 5% 到 10% 之間的客戶。我們的前 5 位客戶占我們收入的 75%，而去年第三季為 82%。

Turning to our CATV products segment. We generated revenue of $11.6 million, up 90% sequentially and up 32% from $8.8 million in Q3 of last year. As expected, we began shipping newly designed line extender amplifier products in the quarter and plan to ship initial quantities of system amplifier products in Q4.

轉向我們的有線電視產品部門。我們的營收為 1,160 萬美元，比上一季成長 90%，比去年第三季的 880 萬美元成長 32%。正如預期的那樣，我們在本季度開始發貨新設計的線路擴展放大器產品，並計劃在第四季度發貨首批系統放大器產品。

Demand from North American MSOs for HFC equipment appears to be stronger than it has been in several years and we currently expect this demand to continue for at least the next several quarters as MSOs upgrade their networks, particularly to address congestion in the return path.

北美 MSO 對 HFC 設備的需求似乎比幾年來更加強勁，我們目前預計，隨著 MSO 升級其網絡，特別是為了解決返迴路徑中的擁塞問題，這種需求至少會在未來幾個季度持續。

Revenue from our telecom products more than tripled to a record $8.9 million from $2.9 million in Q3 of last year, driven by increased 5G demand in China. Revenue from our telecom products accounted for 12% of total revenue, reflecting an increase of 44% from the second quarter and 209% from Q3 of last year. Gross margin in our telecom segment also continued to expand, up 230 basis points sequentially. This growth in revenue combined with increase in gross margin is one of the factors that contributed to the favorable product mix that allowed us to exceed our gross margin guidance in Q3.

受中國 5G 需求成長的推動，我們的電信產品營收從去年第三季的 290 萬美元成長兩倍多，達到創紀錄的 890 萬美元。電信產品營收佔總營收的12%，較第二季成長44%，較去年第三季成長209%。我們的電信部門的毛利率也持續擴大，比上一季成長了 230 個基點。收入的成長與毛利率的提高相結合，是促成有利產品組合的因素之一，使我們能夠在第三季超越毛利率指引。

However, as Thompson mentioned earlier, recently we have been informed by several of our China telecom customers that 5G deployment there has been paused by several large network operators as they replan their supply chains following the disruption caused by Huawei's component shortages. We anticipate that revenue will be down sequentially in Q4, however, we believe that growth will resume in Q1. Overall, we remain optimistic about telecom spend in 2021 as we believe that China deployments will resume with vigor after the Lunar New Year.

然而，正如Thompson先前提到的，最近我們從一些中國電信客戶處獲悉，由於華為零部件短缺造成的中斷，幾家大型網路營運商已經暫停了5G部署，因為他們正在重新規劃供應鏈。我們預計第四季營收將環比下降，但我們相信第一季將恢復成長。總體而言，我們對 2021 年的電信支出保持樂觀，因為我們相信中國的部署將在農曆新年後強勁恢復。

The recent notable highlight in our FTTH segment is our involvement working on the 25GS-PON MSA alongside Nokia and 3 Asia Pacific service providers. We are pleased to be working on this MSA which positions us well in the next-generation PON ecosystem, and we believe this could be a long-term growth driver for our fiber to the home segment.

我們 FTTH 領域最近的顯著亮點是我們與諾基亞和 3 個亞太服務提供者一起參與 25GS-PON MSA 的工作。我們很高興能夠致力於此 MSA，它使我們在下一代 PON 生態系統中處於有利地位，我們相信這可能成為我們光纖到戶領域的長期成長動力。

In Q3, we generated non-GAAP gross margin of 27.4% compared to 28.8% in Q3 of the prior year. Gross margin was above our guidance range of 25% to 26.5% due to a favorable product mix coupled with benefits from our cost reduction actions. We expect these benefits and our product mix to further improve our gross margin in Q4, which we anticipate could approach 29%. Total non-GAAP operating expenses in the third quarter were $22.3 million or 29.1% of revenue compared with $18.4 million or 39.9% of revenue in Q3 of last year.

第三季度，我們的非 GAAP 毛利率為 27.4%，而上年第三季為 28.8%。由於有利的產品組合以及我們的成本削減行動帶來的好處，毛利率高於我們 25% 至 26.5% 的指導範圍。我們預計這些優勢和我們的產品組合將進一步提高我們第四季的毛利率，我們預計毛利率可能接近 29%。第三季非 GAAP 營運支出總額為 2,230 萬美元，佔營收的 29.1%，去年第三季為 1,840 萬美元，佔營收的 39.9%。

Operating expenses as a percent of overall revenue decreased from last year and reflect our efficient expense management. Non-GAAP operating loss in the third quarter was $1.3 million compared to an operating loss of $5.1 million in Q3 last year. GAAP net loss for Q3 was $9.6 million or a loss of $0.42 per basic share compared with a GAAP net loss of $8.8 million or $0.44 per basic share in Q3 of last year. On a non-GAAP basis, net loss for Q3 was $1.4 million or a loss of $0.06 per basic share, which was at the high end of our guidance range of a loss of $0.6 to $4.6 million or a loss of $0.03 to $0.20 per basic share and compares to a net loss of $2.9 million or a loss of $0.15 per basic share in Q3 of last year. The basic shares outstanding used for computing the net loss in Q3 were 22.7 million.

營運費用佔總收入的百分比較去年有所下降，反映了我們高效率的費用管理。第三季非 GAAP 營運虧損為 130 萬美元，去年第三季營運虧損為 510 萬美元。第三季 GAAP 淨虧損為 960 萬美元，即每股基本股虧損 0.42 美元，而去年第三季的 GAAP 淨虧損為 880 萬美元，即每股基本股虧損 0.44 美元。以非公認會計原則計算，第三季淨虧損為 140 萬美元，或每股基本股虧損 0.06 美元，處於我們指導範圍的上限，即虧損 0.6 至 460 萬美元或每股基本股虧損 0.03 至 0.20 美元相較之下，去年第三季的淨虧損為290 萬美元，或每股基本股虧損0.15 美元。用於計算第三季淨虧損的已發行基本股為2,270萬股。

Turning now to the balance sheet. We ended the third quarter with $58.1 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $58.9 million at the end of the second quarter and reflects $6.1 million in cash used for operations. As of September 30, we had $111.4 million in inventory compared to $97.3 million in Q2. The increase was driven mainly by the buildup of raw material and semi-finished goods inventory, which we are preparing prior to year-end and in anticipation of the Lunar New Year holiday.

現在轉向資產負債表。截至第三季末，我們的現金、現金等價物、短期投資和限制性現金總額為 5,810 萬美元。相比之下，第二季末為 5,890 萬美元，反映出用於營運的現金為 610 萬美元。截至 9 月 30 日，我們的庫存為 1.114 億美元，而第二季為 9,730 萬美元。這一增長主要是由於原材料和半成品庫存的增加所致，我們正在年底前和農曆新年假期前準備這些庫存。

We made a total of $3.5 million in capital investments in the quarter, including $1.2 million in production equipment and machinery and $2.2 million on construction and building improvements. This was below our expectations as we continue to tightly manage CapEx. However, as we discussed on the Q2 call, we did resume spending on our new China facility in Q3. We now expect total 2020 capital expenditures to be below our prior expectations as we continue to tightly manage our CapEx plans. Currently, we expect 2020 CapEx to be approximately $22 million, down from our previous estimate of $42 million. The reduction is mostly due to a reduction in equipment purchases and building improvements as we work with our customers to anticipate the timing of the 400G ramp next year. We will continue to reevaluate our spending needs as our plans evolve.

本季我們總共進行了 350 萬美元的資本投資，其中包括 120 萬美元的生產設備和機械投資以及 220 萬美元的建築和建築改進投資。由於我們繼續嚴格管理資本支出，這低於我們的預期。然而，正如我們在第二季電話會議上討論的那樣，我們確實在第三季恢復了中國新工廠的支出。由於我們繼續嚴格管理我們的資本支出計劃，我們現在預計 2020 年資本支出總額將低於我們先前的預期。目前，我們預計 2020 年資本支出約為 2,200 萬美元，低於我們先前估計的 4,200 萬美元。減少的主要原因是設備採購和建築改進的減少，因為我們與客戶合作預測明年 400G 升級的時間。隨著計劃的發展，我們將繼續重新評估我們的支出需求。

Before we turn to our outlook, I would like to provide a quick update on the at-the-market offering we announced in February. To date, we have raised $23.2 million in gross proceeds under this program, including $8.9 million raised in Q3. The as we have stated previously, 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.

在我們展望前景之前，我想快速介紹一下我們二月宣布的市場產品的最新情況。迄今為止，我們已根據該計劃籌集了 2,320 萬美元的總收益，其中包括第三季籌集的 890 萬美元。正如我們之前所說，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 Q4 outlook. We expect Q4 revenue to be between $50 million and $55 million and non-GAAP gross margin to be in the range of 28.5% to 29.5%.

現在轉向我們的第四季展望。我們預計第四季營收將在 5,000 萬美元至 5,500 萬美元之間，非 GAAP 毛利率將在 28.5% 至 29.5% 之間。

Net loss is expected to be in the range of $4.5 million to $5.8 million and non-GAAP loss per basic share between $0.19 and $0.25 using a weighted average basic share count of approximately 23.5 million shares.

根據加權平均基本股數約為 2,350 萬股，預計淨虧損將在 450 萬至 580 萬美元之間，非公認會計原則每股基本股虧損將在 0.19 至 0.25 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) Our first question comes from Dave Kang with B. Riley.

（操作員說明）我們的第一個問題來自 Dave Kang 和 B. Riley。

I just have a quick one on the 400G and 100G products. I was wondering if you guys could give a little color around the pricing environment. Do you guys see any weakness in pricing there? Also, how is the demand looking? Can you guys give any color around that? Like what are customers' demands looking like going forward? And how do you guys view strength in that product?

我只是簡單介紹一下 400G 和 100G 產品。我想知道你們是否可以對定價環境進行一些說明。你們認為那裡的定價有什麼弱點嗎？另外，需求狀況如何？你們能給它一些顏色嗎？未來客戶的需求是什麼樣的？你們如何看待該產品的優勢？

Sure. So regarding your first question on the pricing environment. It's been pretty stable. I mean within our expectations. No big change in that. Regarding your question on demand, as we talked about in our prepared remarks, I think there's some near-term headwinds in -- from some of the hyperscale customers. We've seen -- basically, I think what's going on here is that several of them kind of anticipated more supply chain disruption during COVID than actually occurred. So they prepared extra inventory in anticipation that there would be some problems. Those problems maybe didn't materialize as much as they thought they might and so they're going to adjust their inventories back to more normal levels. Now that's what's going on. And that will take the next couple of quarters to normalize itself, we think.

當然。關於你關於定價環境的第一個問題。一直很穩定。我的意思是在我們的預期之內。沒有什麼大的變化。關於您提出的問題，正如我們在準備好的演講中談到的那樣，我認為近期存在一些來自一些超大規模客戶的阻力。我們已經看到，基本上，我認為這裡發生的情況是，他們中的一些人預計新冠疫情期間供應鏈中斷的情況比實際發生的情況要多。因此他們準備了額外的庫存，以防出現一些問題。這些問題可能沒有像他們想像的那麼嚴重，因此他們將把庫存調整回更正常的水平。現在就是這樣。我們認為，這將需要接下來的幾季才能恢復正常。

Okay. Great. And on the 200- and 400-gig products, how was progress looking? How are qualifications coming along? And how does the demand and pricing environment look for that going forward?

好的。偉大的。 200 和 400 千兆位元產品的進度如何？資質進度如何？未來的需求和定價環境如何？

Sure. So I mean, 200-gig products are -- they're not probably the next mainstream product, as we've talked about in our previous earnings calls and other investor communications. We think 400-gig is really where the next-generation is going to land pretty squarely. We do have some 200-gig sales but it's relatively minor.

當然。所以我的意思是，正如我們在之前的財報電話會議和其他投資者溝通中所討論的那樣，200 場產品可能不是下一個主流產品。我們認為 400 場演出確實是下一代的目標。我們確實有一些 200 場演出的銷售，但相對較小。

As far as 400 gigs, the qualifications that are ongoing there, well we had some good progress on that this quarter. We did finish a -- successfully completed a qualification effort from one of our data center operators this quarter for 400G. That's our second qualification. The other one was announced I believe in Q2 -- I'm sorry, it was announced in our -- in Q2 for our Q1 call. So that's our second 400-gig qualification. And we think that speaks pretty highly of our technology and our ability to gain traction in that market. We do see the 400-gig market beginning to pick up in earnest probably the middle part of next year. We're still working with our customers to ascertain the exact time frame there. But it's starting to feel more solid that we'll start to see some orders in the middle part of next year.

至於 400 場演出，正在進行的資格認證，本季我們在這方面取得了一些良好進展。我們確實完成了——本季度成功完成了我們的一家資料中心營運商的 400G 資格認證工作。這是我們的第二個資格。另一個是在第二季度宣布的，我相信 - 對不起，它是在我們的 - 在第二季度的第一季電話會議中宣布的。這是我們的第二次 400 場演出資格認證。我們認為這高度評價了我們的技術以及我們在該市場獲得吸引力的能力。我們確實看到 400 演出市場可能會在明年中期開始真正復甦。我們仍在與客戶合作以確定確切的時間範圍。但我們將在明年中期開始看到一些訂單，這讓我們感覺更加穩固。

Okay. Sorry, go ahead.

好的。抱歉，請繼續。

No, no. That's it. I think I answered the question.

不，不。就是這樣。我想我回答了這個問題。

Our next question comes from Paul Silverstein with Cowen.

我們的下一個問題來自保羅·西爾弗斯坦和考恩。

Stefan, Thompson, how does demand for 5G look outside of China?

Stefan、Thompson，中國以外地區對 5G 的需求如何？

Right now, I mean, the demand that we're seeing is primarily in China. There's probably demand outside of that but it's not something that we have much exposure to at this point.

我的意思是，目前我們看到的需求主要來自中國。除此之外可能還有需求，但目前我們對此還沒有太多接觸。

So it's more -- Stefan, if I hear you correctly, you just don't have much exposure outside of China that's why your revenue is highly leveraged in 5G China, not so much or very little to 5G outside of China.

所以更重要的是——Stefan，如果我沒聽錯的話，你在中國以外的地區沒有太多的曝光度，這就是為什麼你的收入在5G 中國的槓桿率很高，而在中國以外的5G的槓桿率則沒有那麼多或很少。

Yes. But my suspicion is that there's not -- I mean there's obviously 5G activity going on in China, but I want to be really clear that when we talk about 5G, what we're really talking about is ultra-wideband 5G. There's clearly 5G deployments going on in areas outside of China, but for the most part, the front-haul and mid-haul links in those applications are similar to 4G. So there's not a need for the kind of high-bandwidth optics that we're supplying. Those optics are needed in the ultra-wideband 5G which right now is primarily being deployed in China. So it's not that we necessarily don't have inroads or the capability to sell in other parts of the world, it's just that the ultra-wideband type of 5G deployments are not really that active outside of China.

是的。但我的懷疑是，中國顯然沒有 5G 活動，但我想明確的是，當我們談論 5G 時，我們真正談論的是超寬頻 5G。中國以外的地區顯然正在進行 5G 部署，但在大多數情況下，這些應用程式中的前傳和中傳連結與 4G 類似。因此，不需要我們提供的那種高頻寬光學元件。目前主要在中國部署的超寬頻 5G 需要這些光學元件。因此，並不是說我們沒有能力在世界其他地區進行銷售，而是超寬頻類型的 5G 部署在中國以外的地區並不活躍。

(Operator Instructions) At this time, we have no further questions. I will now turn the call over to Dr. Thompson Lin for closing remarks.

（操作員說明） 目前，我們沒有其他問題。現在我將把電話轉給 Thompson Lin 博士做總結發言。

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

好的。感謝您今天加入我們。一如既往，感謝我們的投資者、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。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。