祥茂光電 (AAOI) 2021 Q4 法說會逐字稿

Good afternoon. I will be your conference operator. And at this time, I would like to welcome everyone to the Applied Optoelectronics Fourth Quarter and Full Year 2021 Earnings Conference Call. (Operator Instructions) Please note that this call is being recorded.

下午好。我將成為您的會議接線員。在這個時候，我想歡迎大家參加 Applied Optoelectronics 2021 年第四季度和全年收益電話會議。 （操作員說明）請注意，此通話正在錄音中。

I would now like to turn the conference over to Cassidy Fuller, Investor Relations for AOI. Ms. Fuller, you may begin.

我現在想把會議交給 AOI 投資者關係部的 Cassidy Fuller。富勒女士，你可以開始了。

Thank you. I'm Cassidy Fuller, Investor Relations for Applied Optoelectronics. And I'm pleased to welcome you to AOI's fourth quarter and full year 2021 financial results conference call.

謝謝你。我是應用光電投資者關係部的 Cassidy Fuller。我很高興歡迎您參加 AOI 的 2021 年第四季度和全年財務業績電話會議。

After the market closed today, AOI issued a press release announcing its fourth quarter and full year 2021 financial results and provided its outlook for the first 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. It will be archived for 1 year.

今天市場收盤後，AOI 發布了一份新聞稿，宣布了其 2021 年第四季度和全年財務業績，並提供了 2020 年第一季度的展望。該新聞稿也可在公司網站 ao-inc.com 上查閱。正在錄製此通話並進行網絡直播。錄音鏈接可在 AOI 網站的投資者關係部分找到。它將被存檔 1 年。

Joining us on today's call are 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 Q4 results, and Stefan will provide financial details and the outlook for the first quarter of 2022. A question-and-answer session will follow our prepared remarks.

加入我們今天的電話會議的是 AOI 創始人、董事長兼首席執行官 Thompson Lin 博士；和 AOI 首席財務官兼首席戰略官 Stefan Murry 博士。 Thompson 將概述 AOI 的第四季度業績，Stefan 將提供財務細節和 2022 年第一季度的展望。問答環節將在我們準備好的評論之後進行。

Before we begin, I'd 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.

在開始之前，我想提醒您查看 AOI 的安全港聲明。在今天的電話會議上，管理層將做出前瞻性陳述。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存在重大差異。

In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intend, predict, expect, plan, may, should, could, would, will or things and by other similar expressions that may convey uncertainty of future events or outcomes.

在某些情況下，您可以通過諸如相信、預期、估計、打算、預測、預期、計劃、可能、應該、可以、將、將要或事情等術語以及可能傳達不確定性的其他類似表達來識別前瞻性陳述。未來的事件或結果。

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 innovation as well as statements regarding the company's outlook for the first quarter of 2022. 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.

前瞻性陳述還包括有關管理層對將我們的產品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 2022 年第一季度前景的陳述。根據法律，我們不承擔在本財報電話會議日期後以任何理由更新前瞻性陳述的義務，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 and filed with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2020. Also, all financials discussed today are on a non-GAAP basis, unless specifically noted otherwise.

有關可能影響公司業務的其他風險的更多信息，請參閱公司報告的風險因素部分並提交給 SEC，包括公司截至 2020 年 12 月 31 日止年度的 10-K 表格年度報告。此外，除非另有特別說明，今天討論的所有財務數據均基於非公認會計原則。

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. I'd like to note the date of our first quarter 2022 earnings call is currently scheduled for May 5, 2022.

非 GAAP 財務指標不應單獨考慮或替代根據 GAAP 編制的結果。我們的 GAAP 和非 GAAP 措施之間的對賬以及關於我們為何提出非 GAAP 財務措施的討論都包含在我們網站上提供的收益新聞稿中。我想指出，我們 2022 年第一季度財報電話會議的日期目前定於 2022 年 5 月 5 日舉行。

Now I'd 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 Applied Optoelectronics 的創始人、董事長兼首席執行官 Thompson Lin 博士。湯普森？

Thank you, Cassidy, and thank you for joining our call today. Turning to the fourth quarter, we delivered revenue and non-GAAP EPS in line with our expectations and gross margin below our expectations, mostly due to unfavorable product mix and increased costs from unanticipated supply chain and logistic expenses.

謝謝你，卡西迪，也感謝你今天加入我們的電話會議。談到第四季度，我們的收入和非公認會計原則每股收益符合我們的預期，毛利率低於我們的預期，這主要是由於不利的產品組合以及意外供應鍊和物流費用導致的成本增加。

During the quarter, we continued to see strong demand in the CATV market and improving conditions in the data center market. We achieved total revenue for fourth quarter of $54.4 million, which increased 3.1% compared to the fourth quarter of 2020 and increased 2.1% sequentially. Total revenue in our CATV segment of $24.9 million was up 56.4% year-over-year and lost (sic) [up] 7.9%, sequentially. The overall CATV demand environment remains strong, and we currently have an unprecedented order backlog extended into Q4 of this year. We believe the condition in our CATV market are likely to remain highly unfavorable into 2023 because our products are currently being used in network upgrade project by the 3 largest CATV MSO in the U.S., along with other smaller operators.

在本季度，我們繼續看到有線電視市場的強勁需求和數據中心市場的改善情況。我們第四季度的總收入為 5440 萬美元，與 2020 年第四季度相比增長了 3.1%，環比增長了 2.1%。我們有線電視部門的總收入為 2490 萬美元，同比增長 56.4%，環比虧損（原文如此）[上升] 7.9%。整體有線電視需求環境依然強勁，我們目前有前所未有的訂單積壓延長至今年第四季度。我們認為，到 2023 年，我們的 CATV 市場狀況可能仍然非常不利，因為我們的產品目前正被美國第三大 CATV MSO 以及其他較小的運營商用於網絡升級項目。

For the revenue for our data center product of $25.2 million decreased 23.1% year-over-year and increased 5.3% sequentially. The sequential growth is encouraged as inventory level with our largest data center customer appear to have returned to normal level and delivery against new demand from this customer has resumed. In addition to our largest data center customer, we saw a significant order increase from several of our new data center customers. Some of these increases were offset and anticipated decline in 40G revenue indicating that the mix continue to shift to 100G.

我們數據中心產品的收入為 2520 萬美元，同比下降 23.1%，環比增長 5.3%。由於我們最大的數據中心客戶的庫存水平似乎已恢復到正常水平，並且針對該客戶的新需求的交付已經恢復，因此鼓勵了連續增長。除了我們最大的數據中心客戶外，我們還看到幾個新數據中心客戶的訂單顯著增加。其中一些增長被抵消，40G 收入的預期下降表明該組合繼續轉向 100G。

In addition, I'm very pleased to report that during the quarter, we received our first volume orders for 400G products from 2 different data center customers. This represents the accumulation of a multi-year qualification effort with these customers, and we believe this initial order will lead to further significant order in the future as 400G gradually surpasses 100G as a dominant data rate within large data centers.

此外，我很高興地報告，在本季度，我們收到了來自 2 個不同數據中心客戶的第一批 400G 產品訂單。這代表了與這些客戶多年認證努力的積累，我們相信隨著 400G 逐漸超過 100G，成為大型數據中心內的主導數據速率，這一初始訂單將在未來帶來更多重要訂單。

During the fourth quarter, we secured 4 design wins among 4 customers. 2 of these design wins were with data center customers and 2 were with telecom customers. One of the data center wins was with an existing data center customer for our 400G products. This customer is currently purchasing 100G product from AOI and expressed an initial volume order for its early 400G deployments.

在第四季度，我們在 4 個客戶中贏得了 4 個設計勝利。其中 2 項設計獲勝來自數據中心客戶，2 項來自電信客戶。我們的 400G 產品的現有數據中心客戶贏得了數據中心的勝利之一。該客戶目前正在從 AOI 購買 100G 產品，並為其早期的 400G 部署表示了初始批量訂單。

With that, I will turn the call over to Stefan to review the details of our Q4 performance and outlook for Q1. Stefan?

有了這個，我將把電話轉給 Stefan，以審查我們第四季度業績和第一季度前景的細節。斯特凡?

Thank you, Thompson. As Thompson mentioned, we delivered revenue and non-GAAP EPS in line with our expectations and gross margin below our expectations, mostly due to unfavorable product mix and unanticipated supply chain and logistics costs. During the quarter, we continued to see strong demand in the CATV market and improving conditions in the data center market. As we anticipated, our results were adversely impacted by approximately $3 million due to the well-known component shortages and supply chain disruptions. Currently, we believe that supply constraints are easing and do not anticipate revenue shortfall in the first quarter due to an inability to source necessary raw materials. We do believe, however, that pricing and shipping costs on many of these components will remain elevated for some time, and this will negatively impact margins in the quarter.

謝謝你，湯普森。正如湯普森所說，我們的收入和非公認會計準則每股收益符合我們的預期，而毛利率低於我們的預期，這主要是由於不利的產品組合以及未預料到的供應鍊和物流成本。在本季度，我們繼續看到有線電視市場的強勁需求和數據中心市場的改善情況。正如我們預期的那樣，由於眾所周知的零部件短缺和供應鏈中斷，我們的業績受到了大約 300 萬美元的不利影響。目前，我們認為供應限制正在緩解，並且由於無法採購必要的原材料，預計第一季度不會出現收入短缺。然而，我們確實相信，其中許多組件的定價和運輸成本將在一段時間內保持高位，這將對本季度的利潤率產生負面影響。

Turning to our quarterly performance. We secured 4 new design wins among 4 customers. Of the 4 design wins, 2 were with data center customers and 2 were with telecom customers. One of the data center design wins was our first for 400G products and was with an existing data center customer. This customer is currently purchasing 100G products from AOI and has placed an initial volume order for its earliest 400G deployments. We are pleased to report that this customer has chosen AOI as the primary supplier for its 400G data center transceiver needs.

轉向我們的季度業績。我們在 4 位客戶中贏得了 4 項新設計勝利。在 4 項設計中，2 項來自數據中心客戶，2 項來自電信客戶。其中一個數據中心設計勝利是我們第一個 400G 產品，並且是與現有數據中心客戶合作的。該客戶目前正在從 AOI 購買 100G 產品，並為其最早的 400G 部署下達了初始批量訂單。我們很高興地報告，該客戶已選擇 AOI 作為其 400G 數據中心收發器需求的主要供應商。

Total fourth quarter revenue of $54.4 million, increased 3.1% compared to the fourth quarter of 2020 and increased 2.1% sequentially. Our Q4 revenue was at the upper end of our guidance range of $51 million to $55 million. In the fourth quarter, 46% of our revenue was from our data center products, 46% from CATV products, with the remaining 8% from FTTH, telecom and other.

第四季度總收入為 5440 萬美元，與 2020 年第四季度相比增長 3.1%，環比增長 2.1%。我們第四季度的收入處於我們 5100 萬美元至 5500 萬美元指導範圍的上限。第四季度，我們46%的收入來自數據中心產品，46%來自CATV產品，其餘8%來自FTTH、電信等。

In our CATV products segment, the overall demand environment remains exceptionally strong as MSOs, particularly in North America, continue to upgrade their networks. We generated revenue of $24.9 million, up 56.4% year-over-year and up 7.9% sequentially. Looking ahead, we continue to have good visibility with CATV orders as we currently have an unprecedented order backlog extending into Q4 of this year.

在我們的 CATV 產品領域，整體需求環境仍然異常強勁，因為 MSO，尤其是在北美，繼續升級其網絡。我們創造了 2490 萬美元的收入，同比增長 56.4%，環比增長 7.9%。展望未來，我們繼續對有線電視訂單保持良好的可見性，因為我們目前有一個前所未有的訂單積壓延伸到今年第四季度。

We believe that conditions in our CATV market are likely to remain highly favorable into 2023 because our products are currently being used in network upgrade projects by the 3 largest CATV MSOs in the U.S. along with other smaller operators. In general, these network upgrades are still in their early phases, and all of the projects are currently expected to continue well into 2023 or beyond.

我們認為，到 2023 年，我們的 CATV 市場狀況可能仍然非常有利，因為我們的產品目前正被美國三大 CATV MSO 以及其他較小的運營商用於網絡升級項目。總的來說，這些網絡升級仍處於早期階段，所有項目目前預計將持續到 2023 年或更長時間。

Our Q4 data center revenue came in at $25.2 million, down 23.1% year-over-year and up 5.3% sequentially. In the fourth quarter, 14% of our data center revenue was from our 40G transceiver products, 79% was from our 100G products and 0.4% was from our 200G and 400G transceiver products. We are very pleased to have begun volume shipments of our 400G portfolio as these products have been under qualification by 11 different customers and the first design wins and associated volume orders give us increased confidence in our traction within the 400G data center market.

我們的第四季度數據中心收入為 2520 萬美元，同比下降 23.1%，環比增長 5.3%。第四季度，我們數據中心收入的 14% 來自我們的 40G 收發器產品，79% 來自我們的 100G 產品，0.4% 來自我們的 200G 和 400G 收發器產品。我們很高興我們的 400G 產品組合已經開始批量發貨，因為這些產品已經通過了 11 家不同客戶的認證，並且首批設計中標和相關的批量訂單使我們對我們在 400G 數據中心市場的吸引力增強了信心。

While we begin shipments of 400G, we are also preparing our first 800G samples, which we expect to deliver to the first of our interested customers at the end of next month. And we have begun concept discussions with several customers on ideas beyond 800G, including 1.6 terabits per second. So we can see a clear progression of increasing data rate products being developed by AOI and customer interest in these future product activities remains fine.

在我們開始出貨 400G 的同時，我們也在準備我們的首批 800G 樣品，我們預計將在下個月底交付給我們第一批感興趣的客戶。我們已經開始與幾位客戶就超過 800G 的想法進行概念討論，包括每秒 1.6 TB。因此，我們可以看到 AOI 正在開發的提高數據速率產品的明顯進展，並且客戶對這些未來產品活動的興趣仍然很好。

Now turning to our telecom segment. Revenue from our telecom products of $3.3 million was down 5.8% year-over-year and declined 36.1% sequentially. In line with our expectations, we saw continued volatility in market conditions in the China telecom market with respect to 5G rollouts. Looking ahead, we continue to expect quarter-to-quarter variability until the pace of 5G rollouts in China becomes more predictable.

現在轉向我們的電信部門。我們電信產品的收入為 330 萬美元，同比下降 5.8%，環比下降 36.1%。與我們的預期一致，我們看到中國電信市場在 5G 部署方面的市場狀況持續波動。展望未來，我們繼續預計季度間的變化，直到中國 5G 部署的步伐變得更加可預測。

For the fourth quarter, our top 10 customers represented 88.4% of revenue, up from 85.1% in Q4 of the prior year. We had 3 10% or greater customers in the fourth quarter, 1 in the CATV market and 2 in the data center market. These customers contributed 36.1%, 15% and 12.4% of total revenue, respectively. For the full year, we had 3 10% or greater customers, 2 in the CATV market and 1 in the data center market. These customers contributed 25.6%, 14.1% and 11.9% of revenue, respectively.

第四季度，我們的前 10 名客戶佔收入的 88.4%，高於去年第四季度的 85.1%。第四季度我們有 3 個 10% 或更多的客戶，1 個在 CATV 市場，2 個在數據中心市場。這些客戶分別貢獻了總收入的 36.1%、15% 和 12.4%。全年，我們有 3 個 10% 或更多的客戶，2 個在 CATV 市場，1 個在數據中心市場。這些客戶分別貢獻了 25.6%、14.1% 和 11.9% 的收入。

In Q4, we generated non-GAAP gross margin of 17.6%, which was below our guidance range of 18.5% to 20% and was down from 19.9% in Q3 of 2021 and 27.5% in Q4 of 2020. The decline in our gross margin was mostly due to unfavorable product mix and increased costs from component shortages. As we discussed last quarter, we have experienced price pressure on certain of our 100G data center products as these product lines have reached full maturity and 400G editions have begun.

第四季度，我們的非美國通用會計準則毛利率為 17.6%，低於我們 18.5% 至 20% 的指導範圍，低於 2021 年第三季度的 19.9% 和 2020 年第四季度的 27.5%。我們的毛利率下降主要是由於不利的產品組合和零部件短缺導致的成本增加。正如我們上個季度所討論的那樣，我們的某些 100G 數據中心產品經歷了價格壓力，因為這些產品線已經完全成熟並且 400G 版本已經開始。

In addition, in our CATV segment, we have seen an inventory correction on some of our higher-margin products by one of our customers that has significantly reduced orders for these higher-margin products. These product mix issues overlap with well-known supply chain challenges and increases in shipping costs that also provide a margin headwind.

此外，在我們的有線電視部門，我們看到我們的一位客戶對我們的一些利潤率較高的產品進行了庫存調整，從而顯著減少了這些利潤率較高的產品的訂單。這些產品組合問題與眾所周知的供應鏈挑戰和運輸成本增加重疊，這也帶來了利潤逆風。

Finally, we've reduced production of lasers in our fab in Q4 due to slower demand from the China 5G market as well as managing inventory ahead of the Lunar New Year. This reduction in fab output resulted in under absorption of the fixed cost of running the fab and further pressured our margins. We believe most of these impacts are transitory. While 100G margins are likely to continue to remain pressured, we expect these products to represent a smaller contribution to data center revenue as 400G begins its ramp, and we begin to see cost reduction associated with the transition to volume production.

最後，由於中國 5G 市場的需求放緩以及農曆新年前的庫存管理，我們在第四季度減少了我們工廠的激光器產量。晶圓廠產量的減少導致運營晶圓廠的固定成本吸收不足，進一步壓低了我們的利潤率。我們相信這些影響大多是暫時的。雖然 100G 的利潤率可能會繼續承壓，但我們預計隨著 400G 開始增長，這些產品對數據中心收入的貢獻會較小，並且我們開始看到與向批量生產過渡相關的成本降低。

On the CATV front, we have a number of cost reduction efforts that have been implemented to reduce raw material and production costs for our highest volume products. In addition, we expect the unfavorable mix shift due to the inventory correction mentioned above to ease by midyear. While we expect margins in Q1 to continue to be pressured by many of the factors I've already discussed and additionally by the effects of Lunar New Year on our Asian operations, Q2 and beyond currently looks significantly more favorable in terms of gross margin as these headwinds moderate or eliminated altogether.

在有線電視方面，我們已經實施了許多降低成本的措施，以降低我們最高產量產品的原材料和生產成本。此外，我們預計由於上述庫存調整導致的不利組合轉變將在年中緩解。雖然我們預計第一季度的利潤率將繼續受到我已經討論過的許多因素以及農曆新年對我們亞洲業務的影響的壓力，但就毛利率而言，第二季度及以後的情況目前看起來要好得多，因為這些逆風緩和或完全消除。

Total non-GAAP operating expenses in the fourth quarter were $16.9 million or 31% of revenue compared with $20.6 million or 39% of revenue in Q4 of the prior year. The reduction in operating expenses is due to a decrease in R&D spend as some of the costs associated with our 400G development have begun to subside, along with benefits from certain cost reduction efforts we made during the quarter.

第四季度非美國通用會計準則運營費用總額為 1690 萬美元，佔收入的 31%，而去年第四季度為 2060 萬美元，佔收入的 39%。運營費用的減少是由於研發支出的減少，因為與我們的 400G 開發相關的一些成本已經開始下降，以及我們在本季度所做的某些降低成本的努力帶來的好處。

Operating expenses were further improved by careful cost control, along with a significant reversal of previously accrued bonuses, especially to executives, which occurred in Q4. We anticipate continued disciplined cost control until a return to consistent profitability has been demonstrated. While we intend to carefully control operating expenses, we continue to invest in new product development. In addition to the 800G and 1.6 terabit transceiver work I discussed earlier for our data center customers, we also have been actively developing high-power lasers intended for use in LiDAR and other sensing applications.

運營費用通過謹慎的成本控制得到進一步改善，同時之前累積的獎金（尤其是在第四季度發生的高管獎金）的大幅逆轉。我們預計將繼續嚴格控製成本，直到證明可以恢復一致的盈利能力。雖然我們打算謹慎控制運營費用，但我們將繼續投資於新產品開發。除了我之前為我們的數據中心客戶討論過的 800G 和 1.6 TB 收發器工作外，我們還一直在積極開髮用於 LiDAR 和其他傳感應用的高功率激光器。

These LiDAR lasers have applications in automotive driver assistance systems, security monitoring, augmented reality and other 3D sensing systems. These products have been under development for several years now. And within the last few months, we have begun shipping qualification samples to 8 different customers, most of which are in the automotive space. Initial feedback from these customers has been very positive, further reinforcing our conviction that AOI's laser-related R&D remains at the forefront of new technology, both in our data center market and in new markets like automotive. While meaningful revenue for these LiDAR lasers is likely a year or 2 away, the addition of these products continues the trend of greater diversity within our customer base. As many of you know, increasing revenue diversity has been a key element of our risk reduction strategy for more than 3 years.

這些 LiDAR 激光器可應用於汽車駕駛輔助系統、安全監控、增強現實和其他 3D 傳感系統。這些產品已經開發了好幾年了。在過去的幾個月裡，我們已經開始向 8 個不同的客戶運送合格樣品，其中大部分是在汽車領域。這些客戶的初步反饋非常積極，進一步強化了我們的信念，即 AOI 的激光相關研發始終處於新技術的前沿，無論是在我們的數據中心市場還是在汽車等新市場。雖然這些 LiDAR 激光器的可觀收入可能需要 1 年或 2 年的時間，但這些產品的添加延續了我們客戶群中更加多樣化的趨勢。正如你們許多人所知，3 年來，增加收入多樣性一直是我們降低風險戰略的關鍵要素。

Non-GAAP operating loss in the fourth quarter was $7.3 million compared to an operating loss of $6.1 million in Q4 of the prior year. GAAP net loss for Q4 was $14.5 million or a loss of $0.54 per basic share compared with a GAAP net loss of $13.4 million or a loss of $0.57 per basic share in Q4 of 2020. On a non-GAAP basis, net loss for Q4 was $5.5 million, or a loss of $0.20 per basic share, which was in line with our guidance range of a loss of $5.5 million to $6.6 million or a loss per share in the range of $0.20 to $0.24 per basic share and compares to a net loss of $4.8 million or a loss of $0.20 per basic share in Q4 of the prior year. The basic shares outstanding used for computing the net loss in Q4 were 27.1 million.

第四季度非公認會計準則營業虧損為 730 萬美元，而去年第四季度的營業虧損為 610 萬美元。第四季度 GAAP 淨虧損為 1450 萬美元或每股基本股虧損 0.54 美元，而 2020 年第四季度 GAAP 淨虧損為 1340 萬美元或每股基本股虧損 0.57 美元。在非 GAAP 基礎上，第四季度的淨虧損為550 萬美元，或每股基本股虧損 0.20 美元，這符合我們的指導範圍，即虧損 550 萬美元至 660 萬美元或每股基本股虧損 0.20 美元至 0.24 美元，與淨虧損相比去年第四季度每股基本股虧損 480 萬美元或 0.20 美元。用於計算第四季度淨虧損的基本流通股為 2710 萬股。

Turning now to the balance sheet. We ended the fourth quarter with $41.1 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $48.9 million at the end of the third quarter. Notably, we reduced total debt compared with Q3 by $5.8 million by utilizing less of our revolving lines of credit at year-end.

現在轉向資產負債表。第四季度末，我們的現金、現金等價物、短期投資和受限現金總額為 4110 萬美元。相比之下，第三季度末為 4890 萬美元。值得注意的是，與第三季度相比，我們在年底減少了循環信貸額度，從而將總債務減少了 580 萬美元。

As of December 31, we had $92.5 million in inventory compared to $94.5 million at the end of Q3. Inventory decreased primarily due to utilization of inventory for customer orders. We made a total of $2.3 million in capital investments in the quarter, including $2.1 million in production equipment and machinery and $0.1 million in construction and building improvements. We are still in the process of evaluating our CapEx plans for 2022, and we will share our expectations as soon as we complete our analysis.

截至 12 月 31 日，我們的庫存為 9250 萬美元，而第三季度末為 9450 萬美元。庫存減少主要是由於客戶訂單的庫存利用率。我們在本季度總共進行了 230 萬美元的資本投資，其中包括 210 萬美元的生產設備和機械以及 10 萬美元的建築和建築改進。我們仍在評估 2022 年的資本支出計劃，我們將在完成分析後立即分享我們的期望。

Moving now to our Q1 outlook. We expect Q1 revenue to be between $51 million and $54 million and non-GAAP gross margin to be in the range of 15.5% to 17.5%. Non-GAAP net loss is expected to be in the range of $8.3 million to $9.5 million and non-GAAP loss per basic share between $0.30 and $0.35 using a weighted average basic share count of approximately 27.5 million shares.

現在轉到我們的第一季度展望。我們預計第一季度收入將在 5100 萬美元至 5400 萬美元之間，非美國通用會計準則毛利率將在 15.5% 至 17.5% 之間。使用約 2750 萬股的加權平均基本股數，非公認會計準則淨虧損預計在 830 萬美元至 950 萬美元之間，非公認會計準則每股基本虧損在 0.30 美元至 0.35 美元之間。

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

有了這個，我會把它交還給接線員進行問答環節。

(Operator Instructions) And our first question today will come from Sam Peterman with Craig-Hallum Capital Group.

（操作員說明）我們今天的第一個問題將來自 Craig-Hallum Capital Group 的 Sam Peterman。

I wanted to ask on gross margins. Obviously, with -- it seems like some of the mix issues and cable resolving by the middle of the year that the margin outlook for the back half would be better. Do you guys think you can get into kind of the mid-20s there or what kind of as the cable issue resolves in data center, you start to ramp 400-gig, is mid-20s kind of reasonable for where you guys think you can go? Or how do you think about margins in the second half?

我想問毛利率。顯然，隨著一些混合問題和電纜在今年年中得到解決，後半部分的利潤率前景會更好。你們認為你們可以在那裡進入 20 年代中期嗎，或者隨著數據中心的電纜問題得到解決，你們開始增加 400 吉格，對於你們認為可以的地方來說，20 年代中期是合理的走？或者你如何看待下半年的利潤率？

Yes. I think mid-20s is an achievable number for us. It's difficult to put a precise time line on that. I mean there's a lot of moving parts as we mentioned, some of the component shortages and other things that have been affecting us. It's a little bit difficult to provide an exact time frame for that, but it's certainly a number that we think is achievable.

是的。我認為 20 多歲對我們來說是一個可以實現的數字。很難在這上面設定一個準確的時間線。我的意思是，正如我們提到的，有很多活動部件，一些組件短缺和其他一直在影響我們的事情。提供一個確切的時間框架有點困難，但我們認為這肯定是一個可以實現的數字。

Okay. Fair enough. On data center, it sounds like that these 2 customers in 400 gig ramping in the second half that will provide an uplift from where you are today? Should you -- how should we think about data center revenues in the first half? And then how should we think about what 400-gig can add? Is that in the low millions or even potentially more than that in the second half?

好的。很公平。在數據中心，聽起來這 2 個 400 gig 的客戶將在下半年增加，這將為您今天的位置提供提升？你應該——我們應該如何看待上半年的數據中心收入？然後我們應該如何考慮 400-gig 可以添加什麼？這是在低數百萬甚至可能超過下半年嗎？

Well, I think data center revenues probably will be reasonably consistent throughout the first half of the year with where they were in the last quarter. And then as you mentioned, we'll start to see around. Now some of that -- there will be a little bit of a shift there, as we mentioned, in our prepared remarks from sort of the 100G to starting to see a little bit more of an increase in the 400G revenue. It's probably not going to be hugely meaningful certainly in the first half until we start to see a ramp later on in the year, hopefully. But within that as that mix is shifting, we don't think the overall number is going to change that much in the first quarter or 2 or a year.

好吧，我認為數據中心的收入可能會在今年上半年與上一季度相當一致。然後正如你提到的，我們將開始四處看看。現在其中一些 - 正如我們在準備好的評論中提到的那樣，那裡會有一點轉變，從 100G 到開始看到 400G 收入增加一點點。在我們希望在今年晚些時候開始看到坡道之前，這在上半年肯定不會有太大意義。但隨著這種組合的變化，我們認為整體數字在第一季度或第二季度或一年內不會發生太大變化。

Okay. And then on the 400-gig customers, you kind of described one of them. Is there any way you could characterize the other one? And then is there any way -- are you -- on the second point of your customer, are you also the primary or lead supplier there? And how would you size that one of that opportunity relative to that first 400-gig win?

好的。然後在 400 個演出的客戶中，您描述了其中一個。有什麼方法可以描述另一個？然後有什麼辦法 - 你是 - 在你的客戶的第二點上，你也是那裡的主要或主要供應商嗎？相對於第一個 400 演出的勝利，你如何衡量那個機會？

I would say that the size of both the customers is probably, I mean, roughly similar, I don't have the total purchasing trend for each of them. I don't have a number on the customer that we didn't talk about as much. I don't have information from them about whether we're the primary or secondary source on that. Some customers will tell you that information directly, others will not. So from that perspective, I can't give you that information. But certainly, we believe that all of the customers will have multiple sources and which are in the top 1 or 2, you're probably going to get a pretty reasonable market share, and that's what we would expect with both of these customers.

我想說的是，這兩個客戶的規模可能，我的意思是，大致相似，我沒有他們每個人的總體購買趨勢。我沒有關於客戶的號碼，我們沒有談論太多。我沒有從他們那裡得到關於我們是主要還是次要來源的信息。有些客戶會直接告訴你這些信息，有些則不會。所以從這個角度來看，我不能給你那個信息。但可以肯定的是，我們相信所有客戶都將擁有多個來源，並且位於前 1 或 2 位，您可能會獲得相當合理的市場份額，這就是我們對這兩個客戶的期望。

(Operator Instructions) And our next question will come from [Robert Mander] with Cowen.

（操作員說明）我們的下一個問題將來自 [Robert Mander] 和 Cowen。

This is [Bob Mander] for Paul Silverstein. At one time, you were thinking that 400G could be 10% of revenue this year. Is that still in the work -- still what you would see?

這是 Paul Silverstein 的 [Bob Mander]。有一次，您認為 400G 可能是今年收入的 10%。那是否仍在工作中-仍然是您會看到的嗎？

I wouldn't say -- I don't think not. We haven't changed our outlook much on the 400G. I think it's really positive that we're starting to see actual orders or volume orders flowing from a couple of customers now. We still have a number of qualification efforts that are underway, but we're optimistic we'll culminate here in the next few months. And that -- all of those opportunities together should drive revenue, whether that will be 10% by the end of the year or not, it's difficult to say, but I think it's possible.

我不會說——我認為不會。我們對 400G 的看法沒有太大改變。我認為我們現在開始看到來自幾個客戶的實際訂單或批量訂單非常積極。我們仍在進行一些資格認證工作，但我們很樂觀，我們將在未來幾個月內達到高潮。而且 - 所有這些機會共同推動收入，無論到今年年底是否會達到 10%，這很難說，但我認為這是可能的。

Okay. In the past -- I guess, last quarter, one of your principal customers for 400G was seeing their own supply chain constraints, which was limiting their ability to place orders. Did I hear correctly that, that's been resolved?

好的。過去——我想，上個季度，您的 400G 主要客戶之一看到了他們自己的供應鏈限制，這限制了他們下訂單的能力。我沒聽錯，已經解決了嗎？

That was more related to just the overall inventory situation. As you recall, if you go back a few quarters, we had -- that particular customer had been hit with supply chain issues that affected their overall deployment of not only 400G but also 100G technology at the time. So it wasn't a statement specifically at 400G, it was just their overall demand to be coming back.

這更多地與整體庫存情況有關。正如你所記得的，如果你回顧幾個季度，我們有——那個特定的客戶受到了供應鏈問題的影響，這些問題不僅影響了他們當時的 400G 技術，而且還影響了 100G 技術的整體部署。所以這不是專門針對 400G 的聲明，只是他們回歸的總體需求。

Okay. But that's been -- is that still an issue with them, or has that been addressed?

好的。但這一直是——這仍然是他們的問題，還是已經解決了？

I think it's largely been addressed at this point.

我認為這在很大程度上已經解決了。

Okay, okay. And at the moment, your data center and CATV is pretty evenly split. And it sounds like you're pretty optimistic about going forward to CATV. Do you still see an even split? Or are you going to expect to see CATV be a larger, a greater percentage than data center going forward for the year?

好吧好吧。目前，您的數據中心和 CATV 分佈相當均勻。聽起來你對未來進入 CATV 很樂觀。你還看到平分嗎？或者您是否希望看到今年 CATV 比數據中心更大、比例更高？

I think they'll be fairly comparable for the year. As you recall from past experience, our first quarter in cable TV can be a little bit challenging for us just because we have the Lunar New Year shutdown, which affects most of our cable TV products are made in Asia. So by virtue of the fact that there's just less time in Q1 due to the Lunar New Year that oftentimes puts a damper on our ability to expand cable TV. So we may see cable TV not grow as much early in the year as it will in the back half of the year. And so from quarter-to-quarter, you might see some variability. But if you look at the year as a whole, I think the 2 will probably be fairly comfortable.

我認為它們在今年將具有相當的可比性。正如您從過去的經驗中回憶的那樣，我們的有線電視第一季度對我們來說可能有點挑戰，因為我們有農曆新年停工，這影響了我們大部分有線電視產品在亞洲製造。因此，由於農曆新年，第一季度的時間變少了，這通常會阻礙我們擴大有線電視的能力。因此，我們可能會看到今年年初有線電視的增長不如下半年那麼快。因此，從季度到季度，您可能會看到一些變化。但如果你把這一年作為一個整體來看，我認為 2 可能會相當舒服。

(Operator Instructions) And this will conclude the question-and-answer session. I'd like to turn the conference back over to Thompson Lin for any closing remarks.

（操作員說明）這將結束問答環節。我想把會議轉回給 Thompson Lin 來做任何結束語。

Okay. Thank you for joining our call today. We want to extend a thanks to you, to our investors, customers and employees for your continued support. We look forward to updating you on our next earnings call.

好的。感謝您今天加入我們的電話會議。我們要感謝您、我們的投資者、客戶和員工的持續支持。我們期待在下一次財報電話會議上更新您的信息。

And the conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

會議現已結束。感謝您參加今天的演講。你現在可以在這個時候斷開你的線路。