祥茂光電 (AAOI) 2020 Q2 法說會逐字稿

Good day, and welcome to the Applied Optoelectronics' Second Quarter 2020 Earnings Conference Call.

大家好，歡迎參加應用光電 2020 年第二季財報電話會議。

(Operator Instructions) Please note that this event is being recorded.

（操作員說明）請注意，該事件正在被記錄。

I would now like to turn the conference over to Monica Gould, Investor Relations for Applied Optoelectronics.

我現在想將會議交給應用光電子公司投資者關係部門的莫妮卡·古爾德 (Monica Gould)。

Please go ahead, ma'am.

請繼續，女士。

Thank you.

謝謝。

I'm Monica Gould, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's Second Quarter 2020 Financial Results Conference Call.

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 年第二季財務業績電話會議。

After the market closed today, AOI issued a press release announcing its second quarter 2020 financial results and provided its outlook for the third quarter of 2020.

今天收盤後，AOI 發布新聞稿，公佈了 2020 年第二季財務業績，並提供了 2020 年第三季的展望。

The release is also available on the company's website at ao-inc.com.

該版本還可在該公司網站 ao-inc.com 上取得。

This call is being recorded and webcast live.

此次通話正在錄音並進行網路直播。

A link to the recording can be found on the Investor Relations section of the AOI website that will be archived for 1 year.

錄音的連結可以在 AOI 網站的投資者關係部分找到，該錄音將存檔 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.

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 will give an overview of AOI's Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2020.

Thompson 將概述 AOI 第二季業績，Stefan 將提供財務細節和 2020 年第三季的前景。

A question-and-answer session will follow our prepared remarks.

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.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。

On today's call, management will make forward-looking statements.

在今天的電話會議上，管理階層將發表前瞻性聲明。

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.

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。

In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks.

在某些情況下，您可以透過相信、預期、估計、打算、預期、預期、計劃、可能、應該、能夠、將、將或認為等術語來識別前瞻性陳述。

And by other similar expressions that convey uncertainty of future events or outcomes.

以及其他類似的表達方式，傳達未來事件或結果的不確定性。

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 third 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以及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 2020 年第三季度前景的陳述。

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

除法律要求外，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化。

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 March 31, 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3 月31 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.

此外，除非另有特別說明，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）。

Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

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。

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.

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 Jefferies 2020 Semiconductor, IT, Hardware and Communications Infrastructure Summit on September 2, and at the H.C. Wainwright 22nd Annual Global Investment Conference on September 15.

在公佈財務業績之前，我想宣布 AOI 管理層將以虛擬方式參加 9 月 2 日舉行的 Jefferies 2020 半導體、IT、硬體和通訊基礎設施高峰會以及 H.C. 9 月 15 日，Wainwright 第 22 屆年度全球投資會議。

These discussions will be webcast live, and a link to the webcast will be available on the Investor Relations section of the AOI website.

這些討論將進行網路直播，並且網路直播的連結將在 AOI 網站的投資者關係部分提供。

We hope to have the opportunity to interact with many of you virtually.

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 third quarter 2020 earnings call is currently scheduled for November 5, 2020.

此外，我想指出的是，我們 2020 年第三季財報電話會議的日期目前定於 2020 年 11 月 5 日。

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

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。

Thompson?

湯普森？

Thank you, Monica, and thank you, everyone, for joining us today.

謝謝莫妮卡，也謝謝大家今天加入我們。

First, I would like to once again thank our entire AOI team that has continued to support one another and our customers during the COVID-19 pandemic.

首先，我要再次感謝我們整個 AOI 團隊在 COVID-19 大流行期間繼續相互支持以及我們的客戶。

Our condolences go out to all those around the world who have been impacted by the virus, and we send our thanks to the first responders and essential workers who continue to protect and support our communities.

我們向世界各地所有受病毒影響的人表示哀悼，並向繼續保護和支持我們社區的急救人員和重要工作人員表示感謝。

Turning to the quarter, AOI delivered Q2 revenue of $65.2 million, which was above our guidance of $55 million to $60 million.

談到本季度，AOI 第二季度營收為 6,520 萬美元，高於我們 5,500 萬至 6,000 萬美元的指引。

Q2 revenue grew 50% compared to the second quarter last year at 61% sequentially, marking the fourth quarter of year-over-year growth that AOI has recorded since the third quarter of 2017.

第二季營收較去年第二季成長 50%，季增 61%，這是 AOI 自 2017 年第三季以來第四季實現年增。

Our performance was driven by improved demand from our datacenter customers, increase customer diversifications and record revenue in our telecom segment led by 5G deployments in China.

我們的業績得益於資料中心客戶需求的改善、客戶多元化的增加以及以中國 5G 部署為主導的電信部門創紀錄的收入。

Non-GAAP gross margin of 23.1% was on the lower end of our expected guidance range due to product mix as well as some COVID-19-related expenses that continued into the quarter, while non-GAAP net loss of $0.24 per share was in line with our expectations.

由於產品組合以及持續到本季度的一些與 COVID-19 相關的費用，非 GAAP 毛利率為 23.1%，處於我們預期指導範圍的下限，而非 GAAP 每股淨虧損 0.24 美元符合我們的預期。

We expect that continued improvement through our cost reduction efforts and more favorable product mix will lead to improving gross margin over the next several quarters.

我們預計，透過降低成本的努力和更有利的產品組合的持續改善將導致未來幾季毛利率的提高。

And we anticipate revenue to be up more than 20% sequentially at the midpoint of our guidance range.

我們預計收入將以我們指導範圍的中點連續增長 20% 以上。

We are encouraged by the increased datacenter demand from a diverse set of customers and improving 5G-related activity that began earlier this year and will continue into Q3.

來自不同客戶群的數據中心需求的增加以及今年早些時候開始並將持續到第三季度的 5G 相關活動的改善令我們感到鼓舞。

During the quarter, we have had design wins, including 4 with telecom customers, which are related to 5G network deployments, mainly in China.

本季度，我們贏得了設計勝利，其中包括 4 個與電信客戶相關的設計，這些設計與 5G 網路部署有關，主要在中國。

The other 4 design wins were with existing customers in our datacenter segment.

另外 4 項設計勝利來自我們資料中心領域的現有客戶。

Additionally, we are pleased to report that we saw increased demand for our 100G products in Q2.

此外，我們很高興地報告，第二季度我們的 100G 產品需求增加。

Total revenue for 100G products increased almost 350% from the same period last year, marking the second quarter in a row of year-over-year growth in 100G sales.

100G產品總營收較去年同期成長近350%，標誌著100G銷售額連續第二季年增。

During the second quarter, we saw significant improvement in our telecom and cable sectors.

第二季度，我們的電信和有線電視產業取得了顯著改善。

Revenue in our telecom segment more than doubled sequentially and outpaced our CATV business.

我們的電信部門的收入連續成長了一倍多，並且超過了我們的有線電視業務。

Driven by increased 5G activity, our cable segment improved sequentially as we began to see increased order flow for product related to CATV upgrades in North America.

在 5G 活動增加的推動下，我們的有線電視業務持續改善，因為我們開始看到與北美 CATV 升級相關的產品訂單流量增加。

We are pleased to report that we received our fourth significant orders for CATV products related to MSO upgrades in Q2, which will begin to ship in Q3.

我們很高興地報告，我們在第二季度收到了與 MSO 升級相關的第四個重要 CATV 產品訂單，該訂單將於第三季度開始發貨。

As we stated in our previous earnings calls, we have taken various actions to ensure the safety and well-being of our employees who all continue to support our customer needs and the needs of the communities in which we operate.

正如我們在先前的財報電話會議中所述，我們已採取各種行動來確保員工的安全和福祉，他們都將繼續支持我們的客戶需求和我們營運所在社區的需求。

Our offices and factories around the world are back to normal operation due to our strict adherence to health and safety recommendations.

由於我們嚴格遵守健康和安全建議，我們在世界各地的辦公室和工廠已恢復正常運作。

Looking ahead, we'll continue to digitally enforce these health precautions to protect the welfare of our employees and our communities.

展望未來，我們將繼續以數位方式執行這些健康預防措施，以保護我們的員工和社區的福祉。

With that, I will turn the call over to Stefan to review the details of our Q2 performance and outlook for Q3.

接下來，我將把電話轉給 Stefan，以審查我們第二季業績的詳細資訊和第三季的前景。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

As you may recall, we had disruptions in operations in our China factory during Q1.

您可能還記得，第一季我們中國工廠的營運出現中斷。

However, as Thompson mentioned, due to the hard work and dedication of our employees and supply chain partners, we are back to normal operations and have increased capacity in both our wafer fab in Sugar Land as well as our factories in China and Taiwan compared to our capacity pre-COVID.

然而，正如Thompson 所提到的，由於我們的員工和供應鏈合作夥伴的辛勤工作和奉獻，我們已經恢復正常運營，並且與之前相比，我們位於Sugar Land 的晶圓廠以及我們在中國大陸和台灣的工廠的產能都有增加。我們在新冠疫情之前的產能。

We continue to see high demand from our datacenter customers who remain focused on improving network performance in light of the increased traffic related to the shift towards working from home.

我們繼續看到資料中心客戶的高需求，鑑於與在家工作的轉變相關的流量增加，他們仍然專注於提高網路效能。

We also received our first orders from CATV customers that we believe are related to network upgrades by MSOs also responding to stresses on their networks.

我們也收到了 CATV 客戶的第一批訂單，我們認為這些訂單與 MSO 的網路升級有關，同時也是為了應對其網路壓力。

Looking ahead to Q3, we are expecting over 20% sequential growth at the midpoint of our guidance range and a continued improvement in our gross margin.

展望第三季度，我們預計環比成長將達到指導範圍的中點，超過 20%，毛利率將持續改善。

Turning to our quarterly performance.

轉向我們的季度業績。

Total revenue for the second quarter was $65.2 million, which was above our guidance range.

第二季總收入為 6,520 萬美元，高於我們的指導範圍。

Our datacenter revenue rose 58% sequentially and 65% year-over-year to $52.6 million and accounted for 81% of our total revenue.

我們的資料中心營收季增 58%，年增 65%，達到 5,260 萬美元，占我們總營收的 81%。

This was our highest datacenter revenue quarter in 2 years.

這是我們兩年來最高的資料中心營收季度。

In the second quarter, 33% of our datacenter revenue was from our 40G transceiver products, and 64% was from our 100G products.

第二季度，我們資料中心收入的 33% 來自我們的 40G 收發器產品，64% 來自我們的 100G 產品。

As Thompson noted, this marks the second quarter in a row of year-over-year growth in our 100G transceivers.

正如 Thompson 指出的那樣，這標誌著我們的 100G 收發器連續第二個季度實現同比增長。

Importantly, we continued to see increased data center demand during Q2 from a diverse set of customers.

重要的是，我們在第二季度繼續看到來自不同客戶群的資料中心需求不斷增加。

Overall, for the quarter, our top 10 customers represented 86.9% of revenue which is down from 90.9% in Q2 of last year.

整體而言，本季我們的十大客戶佔營收的 86.9%，低於去年第二季的 90.9%。

We had three 10% or greater customers in the quarter, all of which were in the datacenter segment.

本季我們有三個 10% 或更多的客戶，所有這些客戶都在資料中心領域。

These customers contributed 35% and 15% and 12% of total revenue, respectively.

這些客戶分別貢獻了總收入的35%、15%和12%。

One of these datacenter customers was a new 10% customer for AOI, where we have been gaining share.

這些資料中心客戶之一是 AOI 的 10% 新客戶，我們在該領域的份額一直在增加。

This new customer is a U.S.-based hyperscale cloud operator that has primarily been purchasing our 100G transceivers.

該新客戶是一家美國超大規模雲端營運商，主要購買我們的 100G 收發器。

We also have seen increasing revenue from a large U.S.-based switch router vendor who approached the 10% revenue mark this quarter.

我們也看到美國大型交換器路由器供應商的營收不斷成長，本季營收接近 10%。

Rounding out our top 5 customers was a datacenter customer in China.

排在我們前 5 名的客戶中還有一家位於中國的資料中心客戶。

Looking at our customer base as a whole, in addition to the 10% or greater customers, we had 3 other customers who each contributed between 5% and 10% of total revenue.

從我們的整體客戶群來看，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% 到 10% 之間。

To put this in some context, in Q2 of last year, we had only two 10% or greater customers and one customer between 5% and 10%.

從某個角度來看，去年第二季度，我們只有兩個 10% 或以上的客戶以及一個 5% 到 10% 之間的客戶。

Now we have six customers each over 5%, and we are pleased to see that our efforts in diversifying our customer base continue to show tangible results and that many of these new customers are contributing meaningfully to our results.

現在，我們有六個客戶，每個客戶的佔比都超過5%，我們很高興看到我們在客戶群多元化方面的努力繼續取得切實成果，並且許多新客戶正在為我們的業績做出有意義的貢獻。

In addition to the market diversity, our top 10 customers are also geographically diverse.

除了市場多樣性之外，我們的十大客戶也具有地理多樣性。

Out of our 5% or greater customers in Q2, all but one were U.S.-based multinationals, and the remaining one was a China-based switch router vendor primarily serving the datacenter market.

在第二季度 5% 或更多的客戶中，除了一家之外，所有客戶都是美國跨國公司，剩下的一家是主要服務於資料中心市場的中國交換器路由器供應商。

Looking at our top 10 customers in Q2, 7 were U.S.-based multinational corporations, 2 were based in China and 1 in Europe.

從第二季的前 10 位客戶來看，7 家是美國跨國公司，2 家來自中國，1 家來自歐洲。

Turning to our cable television product segment.

轉向我們的有線電視產品領域。

We were able to resume manufacturing at a normal capacity during the quarter and recorded a sequential revenue increase of 45% to $6.1 million or 9% of total revenue.

我們能夠在本季恢復正常產能，營收季增 45%，達到 610 萬美元，佔總營收的 9%。

However, CATV revenue remains below the $9.8 million we recorded in Q2 of last year.

然而，有線電視收入仍低於去年第二季的 980 萬美元。

The sequential increase was driven by an increased order flow in North America for cable TV upgrades.

環比成長是由北美有線電視升級訂單流量增加所推動的。

As I noted earlier, we saw our first significant orders for CATV upgrades driven by the shift to working from home this quarter, which we will recognize as revenue in Q3.

正如我之前指出的，本季我們看到了第一批重大的有線電視升級訂單，這是由在家工作的轉變所推動的，我們將在第三季將其確認為收入。

For the remainder of the year, we expect to ramp up production to meet order demand.

在今年剩餘時間內，我們預計將提高產量以滿足訂單需求。

Revenue from our telecom products rose to a record $6.2 million and accounted for 10% of total revenue, reflecting an increase of 141% from the first quarter and 279% from Q2 of last year.

我們的電信產品營收升至創紀錄的 620 萬美元，佔總營收的 10%，較第一季成長 141%，較去年第二季成長 279%。

These results continue to be driven by increased 5G demand in China.

這些業績持續受到中國 5G 需求成長的推動。

Based on current order trends, we expect to see continued strong sequential growth in CATV and telecom revenue in Q3.

根據當前訂單趨勢，我們預計第三季有線電視和電信收入將持續強勁成長。

In Q2, we generated non-GAAP gross margin of 23.1% compared to 27.2% in Q2 of the prior year.

第二季度，我們的非 GAAP 毛利率為 23.1%，而上年第二季為 27.2%。

Gross margin was at the low end of our guidance range of 23% to 25% due to unfavorable product mix, mostly in our datacenter segment, along with increased costs, including manufacturing and shipping costs related to COVID.

由於產品組合不利（主要是在我們的資料中心領域），以及成本增加（包括與新冠疫情相關的製造和運輸成本），毛利率處於我們指導範圍 23% 至 25% 的低端。

We expect gross margins to recover to pre-COVID levels as we implement cost reductions that were delayed by the pandemic.

我們預計，隨著我們實施因疫情而推遲的成本削減措施，毛利率將恢復到新冠疫情前的水平。

We also expect to see improvements in our product mix that we anticipate will improve our gross margin.

我們還期望看到我們的產品組合得到改善，這將提高我們的毛利率。

Total non-GAAP operating expenses in the second quarter were $20.6 million or 31.6% of revenue compared with $19.5 million or 44.9% of revenue in the same quarter last year.

第二季非 GAAP 營運支出總額為 2,060 萬美元，佔營收的 31.6%，去年同期為 1,950 萬美元，佔營收的 44.9%。

Operating expenses increased from last year due mainly to increased shipping costs, sales commissions and insurance costs.

營業費用較去年增加，主要是因為運輸成本、銷售佣金和保險費用增加。

Non-GAAP operating loss in the second quarter was $5.6 million compared to an operating loss of $7.7 million in Q2 of last year.

第二季非 GAAP 營運虧損為 560 萬美元，去年第二季營運虧損為 770 萬美元。

GAAP net loss for Q2 was $18.6 million or a loss of $0.89 per basic share compared with a GAAP net loss of $11.4 million or $0.57 per basic share in Q2 of last year.

第二季 GAAP 淨虧損為 1,860 萬美元，即每股基本股虧損 0.89 美元，而去年第二季的 GAAP 淨虧損為 1,140 萬美元，即每股基本股虧損 0.57 美元。

On a non-GAAP basis, net loss for Q2 was $5 million or a loss of $0.24 per basic share, which was in line with our guidance range of a loss of $4.1 million to $5.7 million or a loss of $0.20 to $0.28 per basic share, and compares to a net loss of $5.2 million or a loss of $0.26 per basic share in Q2 of last year.

根據非公認會計原則，第二季淨虧損為500 萬美元，或每股基本股虧損0.24 美元，符合我們的指導範圍，即虧損410 萬美元至570 萬美元，或每股基本股虧損0.20 美元至0.28 美元，而去年第二季的淨虧損為 520 萬美元，或每股基本股虧損 0.26 美元。

The basic shares outstanding used for computing the net loss in Q2 were 20.9 million.

用於計算第二季淨虧損的已發行基本股為2,090萬股。

Turning now to the balance sheet.

現在轉向資產負債表。

We ended the second quarter with $58.9 million in total cash, cash equivalents, short-term investments and restricted cash.

截至第二季末，我們的現金、現金等價物、短期投資和限制性現金總額為 5,890 萬美元。

This compares with $62.5 million at the end of the first quarter and reflects $15.5 million in cash used for operations.

相比之下，第一季末為 6,250 萬美元，反映出用於營運的現金為 1,550 萬美元。

As of June 30, we had $97.3 million in inventory compared to $87.1 million in Q1.

截至 6 月 30 日，我們的庫存為 9,730 萬美元，而第一季為 8,710 萬美元。

The increase was driven by additional raw materials purchased for production orders on hand and forecasted orders.

這一增長是由於現有生產訂單和預測訂單額外購買的原材料所推動的。

We made a total of $5.8 million in capital investments in the quarter, including $5 million in production equipment and machinery, and an immaterial amount on construction and building improvements.

本季我們總共進行了 580 萬美元的資本投資，其中包括 500 萬美元的生產設備和機械投資，以及少量的建築和建築改進投資。

This is lower than we had anticipated, primarily due to a COVID-related pause in construction on our new China factory.

這低於我們的預期，主要是由於與新冠疫情相關的我們中國新工廠的建設暫停。

Note that we expect to resume spending on our new facility in China in Q3, and we anticipate this to be reflected in increased spending on construction and building improvements.

請注意，我們預計將在第三季恢復在中國新工廠的支出，並且我們預計這將反映在建設和建築改善支出的增加上。

Including this resumption in building expenditures and other equipment necessary to increase our production capacity, we expect total 2020 capital expenditures to be approximately $42 million.

包括恢復建設支出和提高產能所需的其他設備，我們預計 2020 年資本支出總額約為 4,200 萬美元。

Although I would caution, as in years past, that this number is likely to be reevaluated as our plans continue to evolve.

儘管我要提醒大家，與過去幾年一樣，隨著我們計劃的不斷發展，這個數字可能會被重新評估。

Before we turn to our outlook, I would like to provide an update on the at-the-market offering we announced in February.

在我們展望前景之前，我想先介紹一下我們在二月宣布的市場產品的最新情況。

To date, we have raised $22 million in gross proceeds under this program, including $7.7 million raised in July, which will be reflected in our Q3 financial statements.

迄今為止，我們已根據該計劃籌集了 2,200 萬美元的總收益，其中包括 7 月籌集的 770 萬美元，這將反映在我們第三季的財務報表中。

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.

我們打算利用這些收益繼續對業務進行投資，包括用於生產、研發的新設備和機械。

Moving now to our Q3 outlook.

現在轉向我們的第三季展望。

We expect Q3 revenue to be between $76 million and $83 million and non-GAAP gross margin to be in the range of 25% to 26.5%.

我們預計第三季營收將在 7,600 萬美元至 8,300 萬美元之間，非 GAAP 毛利率將在 25% 至 26.5% 之間。

Non-GAAP net loss is expected to be in the range of $4.6 million to $0.6 million, and non-GAAP loss per basic share between $0.20 and $0.03 using a weighted average basic share count of approximately 23.4 million shares.

根據加權平均基本股數約為 2,340 萬股，預計非 GAAP 淨虧損將在 460 萬至 60 萬美元之間，非 GAAP 每股基本股虧損將在 0.20 至 0.03 美元之間。

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

這樣，我會將其轉回給操作員進行問答環節。

Operator?

操作員？

(Operator Instructions) And the first question will come from Alex Henderson with Needham & Company.

（操作員說明）第一個問題將由 Needham & Company 的 Alex Henderson 提出。

I actually have 2 questions.

我實際上有兩個問題。

The first one, the new hyperscale customer, there was a other supplier into that customer, I believe, which was Innolight and I heard that they had some supply chain disruptions.

第一個是新的超大規模客戶，我相信該客戶還有其他供應商，那就是旭創科技，我聽說他們的供應鏈出現了一些中斷。

Do you think that's part of the reason that you got in?

您認為這是您加入的部分原因嗎？

Or do you think that you would have been in regardless of what the competitor supply availability looks like?

或者您認為無論競爭對手的供應狀況如何，您都會參與其中？

And does that have any impact on the way you're thinking about the outlook?

這對您對前景的看法有什麼影響嗎？

I can't say that there's anything specific about any of our competitors that would have impacted this customer's decision.

我不能說我們的任何競爭對手有任何具體因素會影響該客戶的決定。

I mean it's a customer that we've been working with for some time to gain some traction there.

我的意思是，我們已經與該客戶合作了一段時間，以便在那裡獲得一些吸引力。

And I think they've appreciated our ability to supply, and obviously the complete profile that we bring to the table with cost and quality and delivery advantages.

我認為他們很欣賞我們的供應能力，顯然也很欣賞我們在成本、品質和交付方面的優勢。

So I think it was much more about us than about some competitor losing traction there.

所以我認為這更多的是我們的問題，而不是一些競爭對手失去吸引力的問題。

Glad to hear that.

很高興聽你這樣說。

The second question I wanted to delve into the telco piece.

第二個問題我想深入研究電信部分。

I mean it seems pretty clear that what's driving this is the chipsets going into CPRI and fronthaul for 5G that is a huge potential build over time, not just in China but globally.

我的意思是，很明顯，推動這一趨勢的是進入 CPRI 和 5G 前傳的晶片組，隨著時間的推移，這將是一個巨大的潛力，不僅在中國，而且在全球範圍內。

And I'm assuming that these are chipsets that are selling in there.

我假設這些是在那裡銷售的晶片組。

Can you give us some sense of what the rate of chips that are going into that market looks like?

您能否讓我們了解一下進入該市場的晶片的比率是多少？

How many are diodes?

二極體有幾個？

How many are EMLs?

EML 有幾個？

And to what extent you see that ramping from here?

您認為這種趨勢從現在開始會增加到什麼程度？

And any sense of what the TAM is for that market over the next 3, 4, 5 years as that 5G footprint gets build out?

隨著 5G 覆蓋範圍的擴大，TAM 對於未來 3、4、5 年的市場有何意義？

Yes.

是的。

So there's a few questions embedded in there.

所以其中存在一些問題。

As far as the ratio or the precise types of lasers, I don't have a breakdown on that.

至於雷射的比例或精確類型，我沒有詳細說明。

I mean it's a combination of DFP lasers that we're selling, some EMLs and -- but very small, and some transceivers.

我的意思是，它是我們銷售的 DFP 雷射、一些 EML 以及一些收發器（但非常小）的組合。

The precise breakdown I don't have available now.

我現在還沒有確切的細分。

As far as the TAM there, it really remains to be seen.

至於 TAM 的情況，確實還有待觀察。

I think in China alone, which is where we're seeing the most activity right now, they're talking about tens of millions of towers which would be several -- many tens of millions of radios, each of which would require a fronthaul transceiver.

我認為僅在中國，我們現在看到的活動最多的地方，他們正在談論數千萬個塔，其中有數千萬個無線電，每個無線電都需要一個前傳收發器。

So you can kind of get an appreciation that the size of that market is really large.

所以你可以體會到這個市場的規模確實很大。

Our anticipation is not that AOI is going to be a majority player or anything like that in that market, but I think that it's very reasonable for us to expect to get 10%, 20% of that market and hopefully expand over time, and as the opportunities in the rest of the world outside of China begin to materialize, to continue to grow that market share.

我們的預期並不是AOI 將成為該市場的主要參與者或類似的參與者，但我認為我們期望獲得該市場10%、20% 的份額並希望隨著時間的推移而擴大，這是非常合理的，並且中國以外的世界其他地區的機會開始顯現，繼續擴大市場份額。

If I could just finish one last question on that same subject.

如果我能完成關於同一主題的最後一個問題就好了。

The impact of this on the utilization rate in your fab I think is going to be pretty significant.

我認為這對工廠利用率的影響將非常顯著。

Do you expect to see couple of points of margin expansion as these volumes ramp relative to the other transceiver business because of the overhead allocation associated with that?

由於與此相關的管理費用分配，隨著這些銷售量相對於其他收發器業務的成長，您是否預計會看到幾個利潤點擴張？

Yes.

是的。

I mean, I won't comment on the exact magnitude that we expect to see.

我的意思是，我不會評論我們期望看到的確切規模。

We have given guidance, of course, that indicates continued improvement in our gross margin.

當然，我們已經給出了指導，表明我們的毛利率持續改善。

We mentioned that in our prepared remarks as well.

我們在準備好的發言中也提到了這一點。

You saw the improvement from Q1 to Q2 already.

您已經看到了從第一季到第二季的改進。

And that's due to a number of factors, but certainly cost reduction overall coming from higher fab utilization is a big part of that.

這是由於多種因素造成的，但肯定其中很大一部分原因來自於更高的晶圓廠利用率所帶來的整體成本降低。

And we would expect that to continue as long as the growth in that chip market continues.

我們預計，只要晶片市場繼續成長，這種情況就會持續下去。

The next question will come from Simon Leopold with Raymond James.

下一個問題將由西蒙·利奧波德和雷蒙德·詹姆斯提出。

Great.

偉大的。

First, just a very quick easy clarification.

首先，我做一個非常快速簡單的澄清。

The percent of Datacom that was 100 gig, did you say 54% or 64%?

Datacom 中 100 GB 的百分比是 54% 還是 64%？

I'm sorry, you cut out there just a little bit.

抱歉，你刪掉了一點點。

I think you're asking about the datacenter revenue that was 100 gig.

我認為您問的是 100 GB 的資料中心收入。

And if so, that's 64%, 6-4.

如果是這樣，那就是 64%，6-4。

Great.

偉大的。

Sorry about that.

對於那個很抱歉。

I'm a little bit internet and power disadvantaged, thanks to the tropical storm.

由於熱帶風暴的影響，我的網路和電力有點不利。

So I'll try to speak up and be quick.

所以我會盡力說出來並且動作要快。

I wonder if you could maybe bridge the gross margin.

我想知道你們是否可以彌補毛利率。

It was a little light this quarter on very good revenue.

本季的收入非常好，所以有點清淡。

And similarly like in the guidance, I'm just wondering if you could explain how much of the pressure is COVID expenses?

與指南中類似，我只是想知道您能否解釋一下新冠肺炎費用有多大壓力？

How much maybe is mix if the telecom products are dilutive to the gross margin?

如果電信產品攤薄了毛利率，那麼混合可能是多少？

Just help us understand those factors.

只是幫助我們了解這些因素。

Sure, Simon.

當然，西蒙。

Some of it is COVID, not a lot.

其中一些是新冠病毒，但不是很多。

I think the main factor is -- well, really 2 things.

我認為主要因素是——嗯，實際上有兩件事。

It's product mix related and it's cost reduction related.

它與產品組合相關且與成本降低相關。

In other words, those are the 2 things that we have -- 2 levers that we can pull from here on to try to continue to see improved gross margin.

換句話說，這些是我們擁有的兩件事——我們可以從現在開始嘗試繼續提高毛利率的兩個槓桿。

As I mentioned in the previous question -- or answer to the previous question, the fab utilization helps in terms of improving our cost structure.

正如我在上一個問題或對上一個問題的回答中提到的，晶圓廠利用率有助於改善我們的成本結構。

But just like other ways of reducing the cost over time, it does take time for those to flow through because we have a significant amount of inventory and their cycle time associated with it.

但就像其他隨著時間的推移降低成本的方法一樣，這些流程確實需要時間，因為我們有大量的庫存和與之相關的周期時間。

So the improvements that we expect to see we believe are real and they're coming, but it takes some time for them to actually materialize in the financial statements.

因此，我們相信我們期望看到的改進是真實的，而且它們即將實現，但它們需要一些時間才能在財務報表中真正實現。

Great.

偉大的。

And then just one last one, if I might.

如果可以的話，然後是最後一張。

The new datacenter 10% customer, which is really good news, is this something you see as sustainable or -- basically as far as you can forecast or was there something onetime about this quarter?

新的資料中心 10% 客戶，這確實是個好消息，您認為這是可持續的嗎？或者基本上就您可以預測的而言，或者本季度是否有過一些事情？

No.

不。

I mean this customer has actually been growing with us for some time slowly, and they just made it into that 10% category this quarter.

我的意思是，這個客戶實際上已經與我們一起緩慢增長了一段時間，他們本季度剛剛進入 10% 的類別。

But I would not expect that to be a flash in the pan type of thing.

但我不認為這會是曇花一現的事。

I think we've done a good job with this customer.

我認為我們與這位客戶合作得很好。

They on all accounts seem like us as a supplier.

從各方面來看，他們都像是我們的供應商。

And barring any unforeseen circumstances, I don't see any reason why they wouldn't continue to purchase from us.

除非出現任何不可預見的情況，我看不出他們有任何理由不繼續向我們購買。

The next question will come from Paul Silverstein with Cowen.

下一個問題將由保羅·西爾弗斯坦和考恩提出。

Hopefully, this is different than what Alex and Simon asked you.

希望這與亞歷克斯和西蒙問你的不同。

But on the gross margin front, Stefan, do you have visibility to getting back to 30-plus percent?

但在毛利率方面，Stefan，您是否有能力恢復到 30% 以上？

And if you do, can you give us a sense for when that is?

如果你這樣做了，你能讓我們知道那是什麼時候嗎？

I appreciate that it takes time to flow through, per your previous responses, but any visibility right now?

我知道根據您之前的回复需要時間才能通過，但現在有可見性嗎？

I mean, I think our goal is still to get back to the 30-plus percent range.

我的意思是，我認為我們的目標仍然是回到 30% 以上的範圍。

I could see us getting into the upper 20% range by the end of the year.

我預計到今年年底我們將進入 20% 的上限。

Whether we could hit 30% in that time frame, I mean I suppose there are some scenarios where that could happen, but that's probably not as likely.

無論我們能否在這段時間內達到 30%，我的意思是，我認為在某些情況下可能會發生這種情況，但可能性不大。

But I think we're talking about a matter of quarters, not years, for us to get back to that 30% level.

但我認為我們討論的是幾個季度而不是幾年的時間，才能恢復到 30% 的水平。

And I trust the competitive dynamics are not meaningfully different today than they were previously, either better or worse?

我相信今天的競爭動態與以前相比並沒有太大的不同，是更好還是更糟？

No.

不。

I mean we haven't seen any real changes in the competitive dynamic.

我的意思是，我們還沒有看到競爭動態有任何真正的變化。

All right.

好的。

And one other question on margins.

還有一個關於利潤率的問題。

From a pricing perspective, I know they're reset once to twice per year depending on the customer.

從定價的角度來看，我知道它們每年會根據客戶的情況重置一到兩次。

I assume that's still true.

我想這仍然是真的。

But in terms of those resets, any insight you can provide in terms of what it's looking like?

但就這些重置而言，您可以提供有關其外觀的任何見解嗎？

Nothing specific.

沒什麼具體的。

Obviously, we don't give that type of guidance typically.

顯然，我們通常不會提供此類指導。

I can say that we are seeing pretty strong demand right now.

我可以說我們現在看到了相當強勁的需求。

And in past situations where we've seen that kind of strong demand, typically that provides a little more pricing leverage on the suppliers as opposed to the customers.

在過去的情況下，我們看到了這種強勁的需求，通常這為供應商提供了比客戶更多的定價槓桿。

But again, that's just an observation from prior periods.

但同樣，這只是對前時期的觀察。

I can't really speculate about the pricing resets that we might see in the future.

我無法真正推測我們將來可能會看到的定價重置。

Understood.

明白了。

One last quick question.

最後一個快速問題。

I assume by definition, when we're talking about the China 5G opportunity, we're talking about 3, maybe 4, systems customers that you do or can sell into to access that opportunity in terms of Huawei, ZTE, FiberHome and perhaps, what was that, Alcatel, Shanghai Bell and Nokia.

我認為根據定義，當我們談論中國5G 機會時，我們談論的是3 個，也許4 個系統客戶，您可以向這些客戶銷售或可以向他們銷售以獲得該機會，例如華為、中興通訊、烽火通信，也許還有，那是什麼，阿爾卡特、上海貝爾和諾基亞。

Does that go without saying?

這不言而喻嗎？

Yes.

是的。

Just -- I think that's correct in terms of the end customers.

只是——我認為這對最終客戶而言是正確的。

Just to be clear, many of our customers -- we do sell directly into some of those customers, but many of the customers are Chinese-based transceiver manufacturers that then supply those transceivers.

需要明確的是，我們的許多客戶——我們確實直接向其中一些客戶銷售產品，但許多客戶是中國的收發器製造商，他們隨後供應這些收發器。

So we would supply laser diodes, for example, into those transceiver manufacturers, they would manufacture the transceivers and then sell them to the end customer.

例如，我們將向那些收發器製造商提供雷射二極體，他們將製造收發器，然後將其出售給最終客戶。

So much of our business is likely not to be directly with those big guys.

我們的大部分業務很可能不是直接與那些大公司進行的。

But I would assume, based on my knowledge of the market there, that your list of end customers is accurate.

但根據我對那裡市場的了解，我認為你們的最終客戶名單是準確的。

Got it.

知道了。

And did you say how many of those transceiver customers you're selling into?

您是否說過您向多少個收發器客戶銷售產品？

Can you share that with us?

能與我們分享一下嗎？

There's a lot of them.

有很多。

There's probably more than a dozen.

大概有十多個。

Our next question will come from Samik Chatterjee with JPMorgan.

我們的下一個問題將來自摩根大通的 Samik Chatterjee。

This is Bharat on for Samik.

這是巴拉特 (Bharat) 代表薩米克 (Samik) 發言。

So if I could just start with the datacenter segment.

所以如果我可以從資料中心部分開始。

And I think it was just, I think, couple of quarters ago you highlighted a 400-gig [win].

我認為這只是幾個季度前你強調的 400 場演出[勝利]。

So just wanted to understand what you're seeing there.

所以只是想了解你在那裡看到了什麼。

I mean have you started shipping to that customer already?

我的意思是您已經開始向該客戶發貨了嗎？

Have you started to that?

你開始這樣做了嗎？

And any update on probably when revenue can come from that.

以及有關何時可以從中獲得收入的任何更新。

So can you think about what are the milestones there?

那麼你能想一下那裡有哪些里程碑嗎？

Samik, I'm sorry to say that your line is very difficult to understand.

Samik，我很抱歉地說你的台詞很難理解。

So I missed that question.

所以我錯過了這個問題。

Can you try to repeat it?

你能嘗試重複一下嗎？

Yes.

是的。

No, so this is Bharat for Samik.

不，這是 Samik 的 Bharat。

So if I could just start on the datacenter segment and 400-gig specifically.

因此，如果我可以從資料中心部分開始，特別是 400-gig。

So I think it was a couple of quarters ago that you highlighted a design win there with a NEM customer.

因此，我認為您在幾個季度前強調了與 NEM 客戶的設計勝利。

So I just wanted to get a sense, have you started to ship to that customer already?

所以我只是想了解一下，你們已經開始向該客戶發貨了嗎？

And any update on when new recognition can come from that.

任何有關何時獲得新認可的更新都可以來自於此。

So what are some of the milestones there that we can track?

那我們可以追蹤哪些里程碑呢？

Okay.

好的。

So the question was regarding 400G.

所以問題是關於400G的。

We haven't shipped significant quantities to that customer or any other customer of 400G yet.

我們尚未向該客戶或任何其他 400G 客戶出貨。

My sense is that the 400G -- because of COVID, I think some of the 400G qualification efforts are taking longer than expected.

我的感覺是，由於新冠疫情，400G 的一些 400G 資格認證工作花費的時間比預期要長。

And I don't think that's anything unique to AOI.

我認為這並不是 AOI 獨有的。

I think from the information that we have is that a lot of -- particularly the hyperscale customers, many of them are working from home, just like many of us, and that complicates qualification efforts because you've got engineers that can't come to the lab or they're otherwise constrained in their ability to complete those qualification efforts.

我認為，從我們掌握的資訊來看，很多——尤其是超大規模客戶，他們中的許多人都像我們許多人一樣在家工作，這使得資格認證工作變得複雜，因為你的工程師無法來實驗室，或他們完成這些資格認證工作的能力受到其他限制。

So my sense is that, that 400G revenue is probably pushed out a little bit.

所以我的感覺是，400G 收入可能會被推遲一點。

But that's not necessarily a bad thing for us either.

但這對我們來說也不一定是壞事。

I mean if you look at our results this quarter, we're seeing very strong uptick in 100G revenue.

我的意思是，如果你看看我們本季的業績，你會發現 100G 收入出現了非常強勁的成長。

And I would expect that to continue to be there until such time as 400G is ready.

我預計這種情況會持續存在，直到 400G 準備就緒。

Got it.

知道了。

And if I could just ask a follow-up on the telecom end market.

我可否詢問電信終端市場的後續情況。

I mean can you help us think about what's the run rate revenue you're expecting from that business as we look into the second half?

我的意思是，您能否幫助我們考慮一下，在我們展望下半年時，您對該業務的預期收入是多少？

And the reason I ask that is how should we think about like the sustainability of demand of 5G from China?

我問這個問題的原因是我們該如何思考中國5G需求的可持續性？

Because as some of the equipment peers have called out that there's a high inventory position across OEMs, that may pare back some purchasing in the region in the second half.

因為正如一些設備同行所指出的那樣，原始設備製造商的庫存狀況很高，這可能會減少下半年該地區的部分採購。

So just wanted to understand what the drivers are there as we look into the second half.

因此，我們只是想了解下半場的驅動因素是什麼。

Yes.

是的。

We don't give breakdown by segment on a forward-looking basis.

我們不會前瞻性地按細分市場進行細分。

But I imagine this will be just like any other nascent market, right?

但我想這會像其他新興市場一樣，對嗎？

There'll probably be some ups and downs as we go forward.

當我們前進時，可能會遇到一些起伏。

But I think the -- on a quarter-by-quarter basis, you may see some variability there.

但我認為，在每個季度的基礎上，你可能會看到一些變化。

But I think the overall trend towards increased volumes with this 5G deployment is happening, I think, is pretty clear.

但我認為，隨著 5G 部署的出現，銷量增加的整體趨勢非常明顯。

The next question will come from Dave Kang with B. Riley.

下一個問題將由 Dave Kang 和 B. Riley 提出。

I was wondering if you guys could provide more color around new customer wins.

我想知道你們是否可以為贏得新客戶提供更多的色彩。

Are there any 400G customers that you guys have in the pipeline?

你們有 400G 客戶嗎？

Or is that -- that's pushed out still is kind of how you guys are trending?

或者說，這仍然是你們的趨勢？

Well, as I mentioned before, I think a lot of the 400G qualification efforts are getting pushed out.

嗯，正如我之前提到的，我認為很多 400G 資格認證工作都被推遲了。

We did not have any 400G wins this quarter.

本季度我們沒有取得任何 400G 勝利。

But I also -- to be clear, we didn't have any notifications that we are no longer under consideration for 400G.

但我還要澄清的是，我們沒有收到任何關於我們不再考慮 400G 的通知。

In other words, we're kind of at the status quo, that is.

換句話說，我們處於現狀。

I think that the qualification efforts have just gotten pushed out and slowed down a little bit with our customers.

我認為我們的客戶的資格認證工作剛剛被推遲並放緩了一些。

And that's true for us as well as for any of our competitors.

對於我們以及我們的任何競爭對手來說都是如此。

And so -- and as I said earlier, I think our business in 100-gig is growing very nicely.

因此，正如我之前所說，我認為我們的 100 場業務成長得非常好。

And so the 400G delay isn't necessarily a bad thing for us.

所以 400G 的延遲對我們來說不一定是壞事。

It gives us some time to work on the cost and manufacturability of those devices.

它給了我們一些時間來研究這些設備的成本和可製造性。

And that can only be a good thing for us when the time comes.

當時機成熟時，這對我們來說只會是一件好事。

(Operator Instructions) Our next question will come from Fahad Najam with Cowen.

（操作員說明）我們的下一個問題將由 Fahad Najam 和 Cowen 提出。

Much of my questions have already been answered, but I'll ask you a question in terms of any trends you're seeing amongst your largest hyperscale -- the U.S.-based hyperscale customers of a need to push -- pull the supply chain out of China into -- outside of China, maybe in the U.S., especially given the fact that Microsoft and Amazon, 2 of your customers, have or have been vying for this significant U.S. government DoD contract.

我的大部分問題已經得到解答，但我會問您一個問題，即您在最大的超大規模（需要推動的美國超大規模客戶）中看到的任何趨勢，以拉動供應鏈進入中國以外的地區，也許是在美國，特別是考慮到您的兩個客戶微軟和亞馬遜已經或一直在爭奪美國政府國防部的這份重要合約。

Are you seeing a request or pull-in from your customers to move some of your supply chain out of China?

您是否看到客戶要求或拉動您將部分供應鏈遷出中國？

Can you provide some color there?

你能在那裡提供一些顏色嗎？

Well, sure.

嗯，當然。

As we've noted for the last few quarters, we've been producing more and more of our products in Taiwan as opposed to China.

正如我們在過去幾季所指出的，我們在台灣生產的產品越來越多，而不是在中國大陸。

And the customers are certainly aware of and supportive of that.

客戶當然意識到並支持這一點。

I think right now the focus has largely been due to the tariff situation, not because they necessarily have a mandate to move out of China.

我認為現在的焦點主要是因為關稅情況，而不是因為他們一定有撤離中國的授權。

As the political situation with China continues to evolve, obviously, that could become more of a factor.

顯然，隨著與中國的政治局勢不斷發展，這可能會成為一個更重要的因素。

But for now, I think it's mainly just the cost reason why they want us to produce more in Taiwan.

但就目前而言，我認為主要是成本原因，他們希望我們在台灣生產更多產品。

But it's certainly been a factor of conversation with the customers, yes.

但這肯定是與客戶交談的一個因素，是的。

Can you share with us today how much of your production is outside of China now versus, say, before the tariff situation?

您今天能否與我們分享一下，與關稅情勢發生之前相比，您現在有多少生產是在中國境外進行的？

It's a really difficult question to answer, Fahad, because what we've been doing is we've been moving certain parts of the manufacturing from China to Taiwan, and we've been doing other earlier parts of the manufacturing process in China.

Fahad，這是一個非常難以回答的問題，因為我們一直在做的是將某些製造部分從中國轉移到台灣，並且我們一直在中國進行製造過程的其他早期部分。

So it's not like we've completely moved production from China to Taiwan.

所以我們並沒有完全將生產從中國轉移到台灣。

It's been more of a reassignment of manufacturing activities between the 2 plants.

這更多的是兩個工廠之間製造活動的重新分配。

So related to previous question around gross margin, do you think that moving your production -- or if you settle on to a more settled routine and supply chain out of Taiwan, do you think that, that would help your gross margin cost structure going forward?

與之前有關毛利率的問題相關，您認為將生產轉移——或者如果您選擇將更穩定的慣例和供應鏈移出台灣，您認為這會有助於您未來的毛利率成本結構嗎？ ？

Is that what you were alluding to when you said your cost structure kind of depend on it?

當您說您的成本結構有點取決於它時，這就是您所暗示的嗎？

Is that driven by the fact that you're still transitioning a lot of your production out of China into Taiwan, and that's driving up some incremental costs over the near term?

這是因為你們仍在將大量生產從中國轉移到台灣，而這在短期內推高了一些增量成本嗎？

There's some incremental costs in there, but I actually think -- look, the labor cost, for example, in Taiwan is more expensive than China.

這裡面有一些增量成本，但我實際上認為——看，例如台灣的勞動成本比中國更貴。

So on balance, once we hit a steady state here, the gross margin -- if we can't do significant cost reduction like we have been doing, then the gross margin would tend to trend down because of that.

因此，總的來說，一旦我們的毛利率達到穩定狀態，如果我們不能像我們一直在做的那樣大幅降低成本，那麼毛利率就會因此而趨於下降。

The reason why we think it's going to go up is, again, product mix and very attention -- very good attention that we're paying to our cost of production and the ability to continue to improve our manufacturing, improve our supply chain to get that cost to come down.

我們認為它會上升的原因再次是產品組合和非常關注 - 我們非常關注我們的生產成本以及繼續改進我們的製造、改善我們的供應鏈的能力成本下降。

And that's a big part of what we're expecting in order to see the gross margins get back to that upper 20% and then ultimately 30% range.

這是我們期望毛利率回到 20% 以上並最終達到 30% 範圍的一個重要部分。

(Operator Instructions) This concludes our question-and-answer session.

（操作員說明）我們的問答環節到此結束。

I would like to turn the conference back over to Thompson Lin, Chief Executive Officer, for any closing remarks.

我想將會議轉回執行長 Thompson Lin 發表閉幕詞。

Please go ahead.

請繼續。

Okay.

好的。

Thank you for joining us today.

感謝您今天加入我們。

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 investor conferences.

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者會議上見到你們中的許多人。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。