祥茂光電 (AAOI) 2016 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to Applied Optoelectronics Second Quarter 2016 Conference Call. (Operator Instructions) Please also note that today's event is being recorded.

大家下午好，歡迎參加應用光電 2016 年第二季度電話會議。 （操作員說明）另請注意，今天的活動正在錄製中。

At this time, I would like to turn the conference call over to Ms. Maria Riley, Investor Relations for Applied Optoelectronics. Ma'am, you may begin.

現在，我想將電話會議轉給應用光電公司投資者關係部的 Maria Riley 女士。女士，您可以開始了。

Thank you. I'm Maria Riley, Applied Optoelectronics Investor Relations, and I'm pleased to welcome you to AOI's Second Quarter 2016 Financial Results Conference Call.

謝謝。我是應用光電投資者關係部的 Maria Riley，我很高興歡迎您參加 AOI 2016 年第二季度財務業績電話會議。

After the market closed today, AOI issued a press release announcing its second quarter 2016 financial results. 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 page of the AOI website and will be archived for 90 days.

今天收盤後，AOI 發布新聞稿，公佈 2016 年第二季度財務業績。該版本還可在該公司網站 ao-inc.com 上獲取。此次通話正在錄音並進行網絡直播。錄音的鏈接可以在 AOI 網站的投資者關係頁面上找到，並將存檔 90 天。

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 Q2 results and Stefan will provide financial details and an outlook for the third quarter. A question-and-answer session will follow our prepared remarks.

參加今天電話會議的還有 AOI 創始人、董事長兼首席執行官 Thompson Lin 博士；以及 AOI 首席財務官兼首席戰略官 Stefan Murry 博士。 Thompson 將概述 AOI 第二季度業績，Stefan 將提供財務細節和第三季度展望。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. You can identify forward-looking statements by terminology, such as may, expect, plan or believe and similar expressions. 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 expectation. More information about other risks and uncertainties that may impact the company's business are set forth in the Risk Factor section of the company's reports on file with the SEC.

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存在重大差異。您可以通過術語來識別前瞻性陳述，例如可能、期望、計劃或相信以及類似的表達方式。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的義務，以使這些陳述符合實際結果或公司預期的變化。有關可能影響公司業務的其他風險和不確定性的更多信息，請參閱公司向 SEC 歸檔的報告的風險因素部分。

Also, with the exception of revenue, all financial numbers 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 our 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，也不能替代根據公認會計原則編制的結果。我們的 GAAP 和非 GAAP 指標之間的調節以及對我們為何提出非 GAAP 財務指標的討論均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 remind you that AOI management will attend the Jefferies Semiconductor, Hardware & Communications Infrastructure Summit on August 30 in Chicago, and the ROTH Capital Partners Datacenter and Technology Corporate Access Day on September 7 in San Francisco. We hope to have the opportunity to see many of you there.

在介紹財務業績之前，我想提醒您，AOI 管理層將出席8 月30 日在芝加哥舉行的Jefferies 半導體、硬件和通信基礎設施峰會，以及9 月7 日在舊金山舉行的ROTH Capital Partners 數據中心和技術企業訪問日弗朗西斯科.我們希望有機會在那裡見到你們中的許多人。

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

現在我想把電話轉給應用光電總裁、創始人兼首席執行官林湯普博士。湯普森？

Thank you, Maria. Thank you for joining us today. AOI deliver second quarter top and bottom line results well above our guidance. We accomplished a great deal in the quarter, and we are pleased with our progress.

謝謝你，瑪麗亞。感謝您今天加入我們。 AOI 第二季度的頂線和底線業績遠高於我們的指導。我們在本季度取得了很大成就，我們對取得的進展感到滿意。

We grew revenue 11% over last year to reach $55.3 million, which was well above our guidance of $49.5 million to $52 million. We grew datacenter revenues 39% over last year and achieved record datacenter revenue for the fifth consecutive quarter. We resolved the operational challenges that we experienced last quarter at our [Ningbo], China factory with the support of our dedicated operation team, and this contributed to 310 basis point sequential improvement in our gross margin.

我們的收入比去年增長 11%，達到 5,530 萬美元，遠高於我們 4,950 萬至 5,200 萬美元的指導值。我們的數據中心收入比去年增長了 39%，並連續第五個季度實現創紀錄的數據中心收入。在我們專業運營團隊的支持下，我們解決了上季度在中國[寧波]工廠遇到的運營挑戰，這使我們的毛利率環比提高了 310 個基點。

We delivered improved profitability with non-GAAP earnings per share of $0.16, well above our original guidance range. We saw improvement in CATV demand as cable operator began to run out their deployment of DOCSIS 3.1 technology in their network footprint. And lastly, we completed the expansion and move to our new state-of-art fab facility in Sugar Land. We have hosted an Analyst Day in June, where we had opportunity to showcase our new facility.

我們的盈利能力有所提高，非 GAAP 每股收益為 0.16 美元，遠高於我們最初的指導範圍。隨著有線電視運營商開始在其網絡覆蓋範圍內部署 DOCSIS 3.1 技術，我們看到了 CATV 需求的改善。最後，我們完成了擴建並搬遷至 Sugar Land 的新的最先進的晶圓廠。我們在六月舉辦了分析師日活動，我們有機會展示我們的新設施。

After a challenging start to the year, AOI delivered a strong second quarter. Our progress in the quarter reflects our commitment to operational excellence, and I'm especially proud of our team's hard work and dedication. While we still have work to do over the coming quarters, I'm confident that we are on the right pace to build on our momentum in the datacenter and CATV markets and achieve our long-term financial objectives.

經過今年充滿挑戰的開局後，AOI 第二季度表現強勁。我們本季度的進展反映了我們對卓越運營的承諾，我對我們團隊的辛勤工作和奉獻精神感到特別自豪。雖然我們在未來幾個季度仍有工作要做，但我相信我們正以正確的步伐繼續鞏固我們在數據中心和有線電視市場的勢頭並實現我們的長期財務目標。

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

接下來，我將把電話轉給 Stefan，以審查我們第二季度業績的詳細信息和第三季度的前景。斯特凡？

Thank you, Thompson. Total revenue for the second quarter grew 11% year-over-year to reach $55.3 million, well above our original guidance of $49.5 million to $52 million. Our strong results in the quarter were driven by continued demand for our market-leading datacenter products and an increase in demand for our CATV products.

謝謝你，湯普森。第二季度總收入同比增長 11%，達到 5530 萬美元，遠高於我們最初預期的 4950 萬美元至 5200 萬美元。我們本季度的強勁業績得益於市場領先的數據中心產品的持續需求以及有線電視產品需求的增長。

Datacenter revenue in the second quarter grew to $41.3 million, an all-time high, which represents 39% year-over-year growth. Continued demand for our market-leading 40GB products primarily contributed to our strong growth in the quarter. This quarter, 86% of our datacenter revenue was derived from our 40GB datacenter products. Demand for our 100GB products was in line with expectations, and we continue to expect 100GB shipments to increase in Q3.

第二季度數據中心收入增長至 4130 萬美元，創歷史新高，同比增長 39%。對我們市場領先的 40GB 產品的持續需求是我們本季度強勁增長的主要原因。本季度，我們 86% 的數據中心收入來自我們的 40GB 數據中心產品。我們的 100GB 產品需求符合預期，我們繼續預計第三季度 100GB 出貨量將增加。

Leading hyperscale datacenter providers continue to see a growing need to upgrade and expand their infrastructure to address the demand for higher bandwidth and faster data speeds. Our ability to internally produce 10GB and 25GB lasers and 40GB and 100GB light engines, combined with our ability to quickly shift capacity between 40GB and 100GB products, provides AOI the flexibility to quickly scale to growing demand and adjust to customer needs as they evolve. We believe this is a key differentiator for AOI, giving us time to market and cost leadership advantages over the competition. We believe we have the leading market share within our current datacenter customers.

領先的超大規模數據中心提供商不斷看到升級和擴展其基礎設施的需求不斷增長，以滿足更高帶寬和更快數據速度的需求。我們內部生產10GB 和25GB 激光器以及40GB 和100GB 光引擎的能力，加上我們在40GB 和100GB 產品之間快速轉移容量的能力，為AOI 提供了靈活性，可以快速擴展以滿足不斷增長的需求，並隨著客戶需求的發展進行調整。我們相信這是 AOI 的一個關鍵差異化因素，使我們能夠縮短上市時間並在競爭中獲得成本領先優勢。我們相信我們在當前的數據中心客戶中擁有領先的市場份額。

Additionally, we continue to be active in qualifications with another hyperscale datacenter customer and are making good progress on this initiative, which is in line with our expectations. We look forward to sharing more information when a decision has been made.

此外，我們繼續積極與另一個超大規模數據中心客戶進行資格認證，並且在這一計劃上取得了良好進展，這符合我們的預期。我們期待在做出決定後分享更多信息。

Turning to our cable TV market. Revenue from our CATV products in the second quarter was $9.5 million compared with a record $16.4 million in Q2 of last year. On a sequential basis, CATV revenue grew 23%, reflecting the usual seasonality as well as an improving demand environment. The increase in demand was driven by cable providers starting the initial phase of ramping up deployment of DOCSIS 3.1 technology in their network footprint. We are encouraged with the results we are seeing so far and are excited about the growth prospects associated with the DOCSIS 3.1 upgrade.

轉向我們的有線電視市場。第二季度我們的 CATV 產品收入為 950 萬美元，而去年第二季度創紀錄的 1640 萬美元。有線電視收入環比增長 23%，反映了通常的季節性以及需求環境的改善。需求的增長是由有線電視提供商開始在其網絡覆蓋範圍內加大 DOCSIS 3.1 技術部署的初始階段推動的。我們對迄今為止所看到的結果感到鼓舞，並對與 DOCSIS 3.1 升級相關的增長前景感到興奮。

Additionally, we announced during our Analyst Day that we successfully launched a new digital Remote-PHY product in an effort to enhance our market-leading position in the CATV market. We demonstrated this new product on schedule at the ANGA COM exhibition in Cologne, Germany in early June, and the reception from our CATV customers was very positive. As cable MSOs evolve to next-generation architectures that move more intelligence into the HFC plant, we believe our Remote-PHY products will play a significant role in their networks.

此外，我們在分析師日期間宣布，我們成功推出了新的數字 Remote-PHY 產品，以增強我們在 CATV 市場的市場領先地位。 6月初，我們在德國科隆舉行的ANGA COM展會上如期展示了這款新產品，並得到了CATV客戶的熱烈歡迎。隨著有線 MSO 發展到下一代架構，將更多智能引入 HFC 工廠，我們相信我們的 Remote-PHY 產品將在其網絡中發揮重要作用。

Our telecom segment delivered revenue of $3.6 million, up 71% year-over-year, driven by continued demand from our telecom customers and new design wins. For the quarter, 75% of our revenue was from datacenter products; 17% from CATV products; and the remaining 8% from FTTH, telecom and Other.

在電信客戶的持續需求和新設計的推動下，我們的電信部門實現了 360 萬美元的收入，同比增長 71%。本季度，我們 75% 的收入來自數據中心產品； 17%來自有線電視產品；其餘 8% 來自 FTTH、電信和其他。

In the second quarter, we had 2 10% or greater customers in the datacenter business that contributed 42% and 32% of total revenue, respectively.

第二季度，我們的數據中心業務有2個10%或以上的客戶，分別貢獻了總收入的42%和32%。

Moving down the income statement. Q2 gross margin was 31.4%, ahead of our guidance, reflecting an increase of 310 basis points when compared with the 28.3% reported in Q1 of 2016 and a decrease of 230 basis points from the 33.7% reported in Q2 of last year. The sequential improvement in our consolidated Q2 gross margin is a result of the actions we took to resolve the operational challenges experienced last quarter at our Ningbo, China factory.

將損益表向下移動。第二季度毛利率為 31.4%，高於我們的指引，較 2016 年第一季度的 28.3% 增長 310 個基點，較去年第二季度的 33.7% 下降 230 個基點。我們第二季度綜合毛利率的連續改善是我們為解決中國寧波工廠上季度遇到的運營挑戰而採取的行動的結果。

In total, R&D expense was $7.7 million or 13.9% of revenue, compared with $8.3 million or 16.4% of revenue in the prior quarter. During the quarter, we continued to invest in design activity on our cost-reduced 100GB transceivers and other advanced optical products. In Q3, we expect R&D to decline modestly on a dollar basis.

總體而言，研發費用為 770 萬美元，佔收入的 13.9%，而上一季度為 830 萬美元，佔收入的 16.4%。本季度，我們繼續投資於降低成本的 100GB 收發器和其他先進光學產品的設計活動。在第三季度，我們預計研發費用按美元計算將小幅下降。

Sales and marketing expense was $1.5 million or 2.7% of revenue, compared with $1.6 million or 3.2% of revenue in the prior quarter. G&A expense was $4.7 million or 8.5% of total revenue, compared with $4.9 million or 9.7% of total revenue in the prior quarter. This brings total operating expenses in the second quarter to $13.9 million or 25.1% of revenue, down approximately $0.9 million when compared with $14.8 million or 29.3% of revenue in the prior quarter. On a year-over-year basis, total operating expense as a percent of revenue increased by 460 basis points compared with the second quarter of 2015.

銷售和營銷費用為 150 萬美元，佔收入的 2.7%，而上一季度為 160 萬美元，佔收入的 3.2%。一般及行政費用為 470 萬美元，佔總收入的 8.5%，而上一季度為 490 萬美元，佔總收入的 9.7%。這使得第二季度的總運營支出達到 1,390 萬美元，佔收入的 25.1%，比上一季度的 1,480 萬美元或收入的 29.3% 減少了約 90 萬美元。與 2015 年第二季度相比，總運營費用佔收入的百分比同比增長了 460 個基點。

Non-GAAP operating income in Q2 was $3.5 million, compared with an operating loss of $0.5 million in the prior quarter and operating income of $6.6 million in Q2 of last year. Non-GAAP net income after tax for the second quarter was $2.8 million, compared with a net loss of $0.6 million in the prior quarter and net income of $6.1 million in Q2 of last year. We reported non-GAAP net income of $0.16 per diluted share, compared with a non-GAAP net loss of $0.04 per basic share in the prior quarter and non-GAAP net income of $0.38 per diluted share in Q2 of last year.

第二季度非 GAAP 營業收入為 350 萬美元，而上一季度營業虧損為 50 萬美元，去年第二季度營業收入為 660 萬美元。第二季度非公認會計準則稅後淨利潤為 280 萬美元，而上一季度淨虧損為 60 萬美元，去年第二季度淨利潤為 610 萬美元。我們公佈的非 GAAP 每股攤薄淨利潤為 0.16 美元，而上一季度的非 GAAP 每股基本淨虧損為 0.04 美元，去年第二季度的非 GAAP 攤薄每股淨利潤為 0.38 美元。

GAAP net income for Q2 was $0.6 million or $0.03 per diluted share, compared with GAAP net loss of $1.3 million or $0.08 per basic share in the prior quarter and GAAP net income of $6.1 million or $0.38 per diluted share in Q2 of last year. The Q2 weighted average fully diluted share count was approximately 17.5 million shares.

第二季度GAAP 淨利潤為60 萬美元，即每股稀釋每股0.03 美元，而上一季度GAAP 淨虧損為130 萬美元，即每股基本股0.08 美元，去年第二季度GAAP 淨利潤為610 萬美元，即每股稀釋每股0.38 美元。第二季度加權平均完全稀釋股數約為 1,750 萬股。

Turning now to the balance sheet. We ended Q2 with $47.3 million in total cash, cash equivalents, short-term investments and restricted cash compared with $58.5 million at the end of the previous quarter. Accounts receivable increased to $41.5 million compared with $34.9 million last quarter, and accounts payable increased approximately $8 million over Q1. We made a total of $17.6 million in capital investments in the quarter, including $6.2 million in production equipment and machinery and $9.7 million in construction and building improvements, mostly for our new production facility in Sugar Land.

現在轉向資產負債表。第二季度末，我們的現金、現金等價物、短期投資和限制性現金總額為 4730 萬美元，而上一季度末為 5850 萬美元。應收賬款從上季度的 3490 萬美元增加到 4150 萬美元，應付賬款比第一季度增加約 800 萬美元。本季度我們總共進行了 1,760 萬美元的資本投資，其中包括 620 萬美元的生產設備和機械投資以及 970 萬美元的建築和建築改良投資，主要用於我們在 Sugar Land 的新生產設施。

As the building projects in Sugar Land are completed, we expect capital investments in Q3 and beyond to moderate. As of June 30, we had $59.8 million in inventory, a slight decrease from $60.3 million in Q1.

隨著 Sugar Land 的建築項目完成，我們預計第三季度及以後的資本投資將放緩。截至 6 月 30 日，我們的庫存為 5980 萬美元，比第一季度的 6030 萬美元略有下降。

Moving to our outlook. We expect Q3 revenue to be between $56 million and $59 million, and Q3 non-GAAP gross margin to be in the range of 30.5% to 32%. Non-GAAP net income is expected to be in the range of $2.9 million to $3.8 million, and non-GAAP EPS between $0.16 per share and $0.21 per share using a weighted average fully diluted share count of approximately 18 million shares.

轉向我們的展望。我們預計第三季度收入將在 5600 萬美元至 5900 萬美元之間，第三季度非 GAAP 毛利率將在 30.5% 至 32% 之間。根據約 1800 萬股的加權平均完全稀釋股數，預計非 GAAP 淨利潤將在 290 萬美元至 380 萬美元之間，非 GAAP 每股收益將在 0.16 美元至 0.21 美元之間。

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

這樣，我會將其轉回給操作員進行問答環節。操作員？

(Operator Instructions) And our first question comes from Troy Jensen from Piper Jaffray.

（操作員說明）我們的第一個問題來自 Piper Jaffray 的 Troy Jensen。

Thank you and congrats on nice results.

謝謝並祝賀取得了良好的成績。

Thank you.

謝謝。

Thanks, Troy.

謝謝，特洛伊。

Hey, so Stefan, when you look at your [Q3 guide], I'd just be curious to know, cable versus datacenter. Are you expecting both to grow modestly sequentially? Or is one going to outpace the other?

嘿，Stefan，當您查看 [Q3 指南] 時，我很想知道電纜與數據中心。您是否預計兩者都會依次溫和增長？或者其中一個會超越另一個？

Yes, I think we're expecting both cable and datacenter to grow in the quarter.

是的，我認為我們預計本季度電纜和數據中心都會增長。

So modestly then for both. And then, within the datacenter business, I mean, is it safe to assume that 40GB is going to decline, and we're going to get a quicker ramp on 100G? Or do you think the 40GB business stays at this level for a bit?

那麼對於兩人來說都是如此謙虛。然後，在數據中心業務中，我的意思是，可以安全地假設 40GB 將會下降，而我們將在 100G 上獲得更快的增長嗎？或者您認為40GB業務會在這個水平上停留一段時間嗎？

Well, I think, as 100GB ramps, we will expect to see a decline in 40GB. This quarter, as we indicated, 100GB is really going to be ramping. So there's going to be a transition period, I guess, you could say, between the 40GB growing, obviously, as it did this quarter and eventually declining. As far as the specifics of how that breaks out in this quarter or next quarter, it's a little difficult to say. But we would expect -- we don't expect 40GB to drop significantly, let's say, all at once. It will take a period of time for it to decline.

嗯，我認為，隨著 100GB 的增長，我們預計 40GB 會下降。正如我們所指出的，本季度 100GB 容量確實會大幅增長。因此，我想，你可以說，顯然，在 40GB 增長和最終下降之間會有一個過渡期，就像本季度那樣。至於具體如何在本季度或下季度爆發，還很難說。但我們預計 40GB 不會突然大幅下降。需要一段時間才會下降。

Yes, that's comforting. And then last question and I'll cede the floor. Can you just give me any update on QSFP-28 units you shipped, I know you've provided a [data] client maybe a quarter or two ago. Are there any new 100GB design wins in the quarter?

是的，這很令人欣慰。最後一個問題我將讓出發言權。您能給我提供有關您發貨的 QSFP-28 設備的任何更新嗎？我知道您可能在一兩個季度前提供了一個[數據]客戶端。本季度是否有新的 100GB 設計獲勝？

So as far as the 100GB shipments, in terms of units, we shipped somewhat less than what we shipped last quarter in terms of units, which was in line with what we had expected. And as far as 100GB design wins, we didn't announce any design wins for 100GB in this quarter.

因此，就 100GB 出貨量而言，我們的出貨量略低於上季度的出貨量，這符合我們的預期。至於 100GB 設計獲勝，我們本季度沒有宣布任何 100GB 設計獲勝。

All right, guys. Good luck in the second half.

好吧，伙計們。祝下半場好運。

Thanks.

謝謝。

Our next question comes from Simon Leopold from Raymond James.

我們的下一個問題來自雷蒙德·詹姆斯的西蒙·利奧波德。

Thank you for taking my question. This is [Mauricio] on behalf of Simon Leopold. A couple of questions. The first one, Stefan, can you give -- please give us an update on your expectations of the availability of the 25GB, 50GB chipset? And based on that, when are you expected to meaningfully ramp 100GB shipments?

感謝您回答我的問題。我是[毛里西奧]代表西蒙·利奧波德。有幾個問題。第一個，Stefan，您能給我們介紹一下您對 25GB、50GB 芯片組可用性的期望的最新情況嗎？基於此，您預計什麼時候才能大幅提升 100GB 出貨量？

Well, with regard to the chipsets, that's really a question that's probably better addressed to either one of the chipset manufacturers or one of the customers that's buying them. We did guide for a ramp in 100GB starting in this quarter in Q3. And so clearly, our customers have, to some extent, at least resolved the 100GB problems they had. As far as of the availability of the chipsets, I won't comment on that because it's not our chipset.

嗯，關於芯片組，這確實是一個可能最好由芯片組製造商之一或購買芯片組的客戶之一解決的問題。我們在第三季度開始製定了 100GB 容量提升指南。很明顯，我們的客戶在某種程度上至少解決了他們遇到的 100GB 問題。至於芯片組的可用性，我不會對此發表評論，因為它不是我們的芯片組。

Okay. Also, if you could also give us some color on the overall pricing environment, and most notably, on 100GB?

好的。另外，您能否給我們一些有關整體定價環境的信息，尤其是 100GB 的定價環境？

Sure. I think, as we indicated in our Analyst Day, AOI is prepared to maintain our cost leadership in the 100GB products. So the pricing environment has been competitive. There's no doubt about it. But we think we're well positioned to maintain gross margins and revenue growth, even in light of the competitive pricing on 100GB.

當然。我認為，正如我們在分析師日中指出的那樣，AOI 已準備好保持我們在 100GB 產品方面的成本領先地位。因此，定價環境具有競爭力。毫無疑問。但我們認為，即使 100GB 的定價具有競爭力，我們仍能保持毛利率和收入增長。

Okay. And the final one, if I may. You previously talked about -- you were on trials on the 100GB portfolio with the third web-scale customer. I was wondering if you could -- I know you addressed that on your statements. But if you could give us more color on that.

好的。如果可以的話，還有最後一篇。您之前談到過，您正在與第三個網絡規模客戶一起試用 100GB 產品組合。我想知道你是否可以——我知道你在發言中談到了這一點。但如果你能給我們更多的信息。

No, I mean, pretty much what we said in the early remarks is what we have to say at this point on. The qualification is still ongoing. It's going well. It's within -- we're where we expected to be at this point in terms of the plan. And as soon as we have a concrete decision to make or to announce, we'll do so.

不，我的意思是，我們在早期發言中所說的幾乎就是我們現在必須說的。資格認定仍在進行中。進行得順利。就計劃而言，我們目前處於我們預期的位置。一旦我們做出或宣布具體決定，我們就會這樣做。

Our next question comes from Richard Shannon from Craig-Hallum. Please go ahead with your question.

我們的下一個問題來自 Craig-Hallum 的 Richard Shannon。請繼續你的問題。

Hey, guys. Thank you for taking my questions and nice quarter and guide here. Let's see, a few questions from me. Maybe on 100GB here. Stefan, I wondered if you could maybe add a little bit more precision to your expectations here in third quarter. You mentioned it coming down in the second and coming back up in the third. Is this going to be a record level here in the third quarter or not up to the levels you saw in the first?

大家好。感謝您在這裡提出我的問題以及美好的季度和指導。讓我們看看我的幾個問題。這裡可能是 100GB。斯特凡（Stefan），我想知道您是否可以在第三季度的預期中增加一點精確度。你提到它在第二次下降並在第三次上升。這將是第三季度的創紀錄水平還是達不到您在第一季度看到的水平？

We haven't really indicated any numbers. We don't really give guidance on a kind of by-product basis like that. We do think that the customers, as I said on the previous -- the answer to one of the previous questions, that the customers are moving beyond the problems that they had with the chipsets in the previous quarters. And so I think this should be the beginning of a sustained ramp. As to what exactly how much comes into this quarter or next quarter, we're not going to comment on the precise level.

我們還沒有真正指出任何數字。我們並沒有真正在這樣的副產品基礎上提供指導。我們確實認為客戶，正如我在上一篇中所說的——對之前問題之一的回答，客戶正在克服前幾個季度芯片組遇到的問題。所以我認為這應該是持續增長的開始。至於本季度或下季度具體有多少，我們不會評論具體水平。

Okay, fair enough. Question on gross margins. Had a nice ramp up after the issues in the first quarter. Your guide for the third quarter at the midpoint, just is slightly below what you had in the first. And you're talking about some growth in the 100GB in datacenter, I guess, specifically. Seems to be contrary to one another because I think you've talked about 100GB being a positive mix shift for you. Can you help us understand, at least at the midpoint, why that would be down? Is this due to some sort of mix or depreciation? Or what would be the reasons for that, Stefan?

好吧，很公平。關於毛利率的問題。在第一季度的問題之後，有一個很好的提升。您對第三季度中點的指導僅略低於第一季度的指導。我想，您具體談論的是數據中心 100GB 的增長。這似乎是相互矛盾的，因為我認為您已經談到 100GB 對您來說是一種積極的混合轉變。您能否幫助我們理解（至少在中間）為什麼會下降？這是由於某種混合或折舊造成的嗎？或者斯特凡，原因是什麼？

Well, certainly, mix is always an element for us among the different products that we have. But I think, as we talked about at the Analyst Day, we have a gen 2 100GB product, which is significantly lower cost, which will be coming online for us towards the end of the quarter. And so the 100GB margin profile will improve as that gen 2 product comes on board. But that won't be until later on in the quarter. So you won't see as much of the margin effect in this quarter as you will next quarter.

當然，混合始終是我們擁有的不同產品中的一個要素。但我認為，正如我們在分析師日討論的那樣，我們有第二代 100GB 產品，其成本顯著降低，並將在本季度末上線。因此，隨著第二代產品的推出，100GB 的利潤狀況將會改善。但這要到本季度晚些時候才會發生。因此，您在本季度看到的利潤效應不會像下季度那樣大。

Okay, great. I apologize. I missed this comment as I was looking at something else. But I think you mentioned something about CapEx. Can you repeat that please, Stefan?

好的，太好了。我道歉。我在看其他東西時錯過了這個評論。但我認為您提到了一些有關資本支出的內容。斯特凡，你能再說一遍嗎？

Yes, I mean, well, all we said about the CapEx. We just repeated the CapEx numbers that we had in the quarter, which were -- stand by a second here.

是的，我的意思是，我們所說的有關資本支出的一切。我們剛剛重複了本季度的資本支出數據，請稍等。

Did you mention anything about third quarter trends? I thought I missed something there, so that's why I'm -- that's the point of my question. Did you mention anything about the third quarter or second half?

您有提到第三季度的趨勢嗎？我以為我錯過了一些東西，所以這就是我的原因——這就是我問題的重點。你有沒有提到第三季度或下半年的情況？

No. What we said about was that we spent $17.6 million total in the quarter, $6.2 million was on production equipment and machinery and $9.7 million on construction and building improvement. And then what we said is that, as the construction projects that we have ongoing are drawing to a close, that we would expect that portion of it, that is the $9.7 million that we spent in Q2 on construction and building improvements, we would expect that to start to go away.

不。我們所說的是，我們本季度總共花費了 1760 萬美元，其中 620 萬美元用於生產設備和機械，970 萬美元用於建築和建築改進。然後我們說的是，隨著我們正在進行的建設項目即將結束，我們預計其中的一部分，即我們在第二季度用於建設和建築改進的 970 萬美元，我們預計那個開始消失。

Got it. Okay. That's what I think I missed there. Okay. Great. Then my last question on cable TV. Started to see some improvement, finally, which is great to see. Obviously, DOCSIS 3.1 trends seem to be pretty positive. Wondering if you can kind of give us kind of your big-picture thought here and numerically, as we look relative to your recent past here. You had a record quarter, I think, about five quarters ago at -- where did I put the number, roughly $16.5 million a year ago. Is that a number that you see as achievable as DOCSIS 3.1 begins to build over the next few quarters at all? Is that remotely a possibility?

知道了。好的。這就是我想念的地方。好的。偉大的。然後是我在有線電視上的最後一個問題。終於開始看到一些改進，這是很高興看到的。顯然，DOCSIS 3.1 的趨勢似乎相當積極。想知道您是否可以在這裡向我們提供您的總體想法和數字，因為我們在這里相對於您最近的過去進行了研究。我認為，大約五個季度前，您的季度創下了紀錄，我把這個數字放在哪裡了，一年前大約為 1650 萬美元。您認為隨著 DOCSIS 3.1 在未來幾個季度開始建設，這個數字是可以實現的嗎？這有可能嗎？

I mean, I think, it's achievable. I won't say specifically, over the next couple of quarters. But certainly -- I mean, it's not something where we've never expect to see that number again. I think, what we've said about the cable market is that this is the beginning of what we expect to be a long upgrade cycle. Cable, as you probably are aware, is relatively slower moving, I would say, in terms of adopting new technologies compared to, say, datacenter customers, for example. So we wouldn't expect the ramp to be as sharp. But I certainly think this has got the potential to be a sizable upgrade cycle and certainly one that we should be able to achieve that $16-plus million figure at some point in the future.

我的意思是，我認為這是可以實現的。我不會具體說未來幾個季度的情況。但當然——我的意思是，我們不會期望再次看到這個數字。我認為，我們關於電纜市場所說的是，這是我們預計的漫長升級週期的開始。您可能知道，我想說的是，與數據中心客戶相比，在採用新技術方面，電纜的發展相對較慢。所以我們預計斜坡不會那麼陡峭。但我當然認為這有可能成為一個相當大的升級週期，當然我們應該能夠在未來的某個時候實現 1600 萬美元以上的數字。

Our next question comes from Brian Alger from ROTH Capital Partners.

我們的下一個問題來自羅斯資本合夥公司的布萊恩·阿爾杰。

Thank you. And good afternoon, guys and I'll echo the congratulations, nice quarter. You mentioned that you expect growth from both the datacenter as well as the CATV. I'm wondering if the remaining segments, the fiber-to-the-home and the telecom are expected to be flat in the quarter or perhaps even not growing. How should we think about the rest of the business?

謝謝。下午好，各位和我將表示祝賀，美好的季度。您提到您預計數據中心和有線電視都會增長。我想知道剩餘的光纖到戶和電信領域是否預計在本季度持平，甚至可能不會增長。我們應該如何考慮其他業務？

Well, I think, if you kind of look at our FTTH results over the last few quarters, it's been kind of hovering up and down around that $400,000 to $500,000 a quarter figure. So we -- I wouldn't expect there's no catalyst -- that we would expect that to change dramatically in the next few quarters.

嗯，我想，如果你看看我們過去幾個季度的 FTTH 業績，就會發現它在每季度 400,000 美元到 500,000 美元的數字上下徘徊。所以我們——我不認為沒有催化劑——我們預計這種情況會在未來幾個季度發生巨大變化。

Telecom has been growing as a segment for us pretty steadily. But again, that's kind of a -- this is a hodgepodge of different products that we sell for different applications and several different customers there. It's not an area of emphasis for us. So while we continue to look for opportunities to get business in that segment as well as any other one that we can find, it's not an area of emphasis for us. So I wouldn't expect that to be it, again, a big source of growth for us.

電信作為我們的一個細分市場，一直在穩步增長。但同樣，這是一種不同產品的大雜燴，我們為不同的應用和幾個不同的客戶銷售這些產品。這不是我們重點關注的領域。因此，雖然我們繼續尋找在該領域以及我們能找到的任何其他領域獲得業務的機會，但這並不是我們的重點領域。所以我不認為這會成為我們增長的一大來源。

They're also -- I mean, all those segments together are relatively small for us. So even if we did see some growth, even if it was healthy on a percentage basis, on a dollar basis, it would be small enough that whatever growth we see in cable TV and datacenter would likely dwarf that amount of business.

我的意思是，所有這些部分加在一起對我們來說相對較小。因此，即使我們確實看到了一些增長，即使按百分比、按美元計算是健康的，但它也足夠小，以至於我們在有線電視和數據中心看到的任何增長都可能使業務量相形見絀。

All right. And I guess, where I'm going with this is that, at the midpoint, the guidance for the quarter, in the September quarter's roughly about 5% growth. There's others talking about faster growth within certainly the datacenter markets. And it's -- one would think that the cable adoption of 3.1 is just getting started. Trying to understand why the growth wouldn't be stronger than seasonal here in the September quarter. Is this just a matter of conservatism? Or is it lack of visibility? Or how should we think about it?

好的。我想，我的意思是，在中點，本季度的指導，即 9 月份季度的增長大約為 5% 左右。還有其他人在談論數據中心市場的更快增長。人們可能會認為 3.1 的有線採用才剛剛開始。試圖了解為什麼九月季度的增長不會強於季節性增長。這只是保守主義的問題嗎？還是缺乏可見性？或者說我們應該如何思考？

Well, I think, the reality is that it's very hard to pinpoint growth in business quarter-by-quarter, right? I mean, we tend to look at business over a longer-term time frame. And I think, if you'll take a bigger picture, there's been quite a lot of good growth, both in the datacenter and most recently, in the cable TV business. So as far as how much of that we're going to attribute to the third quarter and the fourth quarter, it's just a matter of making a judgment on which quarter a lot of that revenue is likely to fall into.

嗯，我認為，現實是很難按季度確定業務增長，對吧？我的意思是，我們傾向於從更長遠的角度來看待業務。我認為，如果你從更大的角度來看，數據中心和最近的有線電視業務都取得了相當大的良好增長。因此，就我們將其中多少歸因於第三季度和第四季度而言，只需判斷大部分收入可能落入哪個季度即可。

I'll also point out, as I have in the past, that some of our major -- both cable TV and datacenter customers have vendor managed or VMI or vendor-owned inventory programs. And that also makes it a little bit difficult for us to predict precisely how much revenue is going to fall in any particular quarter. And so we have to be appropriately conservative with respect to those VMI and VOI programs, because we don't have control over that -- the timing of that inventory.

我還要指出，正如我過去所做的那樣，我們的一些主要客戶——有線電視和數據中心客戶都有供應商管理的或 VMI 或供應商擁有的庫存計劃。這也使得我們很難準確預測任何特定季度的收入將下降多少。因此，我們必須對這些 VMI 和 VOI 計劃保持適當的保守，因為我們無法控制庫存的時間安排。

Of course, it makes sense. And you mentioned the split between 40GB and 100GB. As you look at the datacenter customers and the orders that we have for the September quarter, would you expect a significant shift in that split in the September quarter towards 100G? Or are we still looking at a similar split between 40GB and 100GB?

當然，這是有道理的。您提到了 40GB 和 100GB 之間的區別。當您查看 9 月份季度的數據中心客戶和訂單時，您是否預計 9 月份季度的劃分會向 100G 方向發生重大轉變？或者我們是否仍在考慮 40GB 和 100GB 之間的類似劃分？

Well as I said, I think, 100GB is going to ramp in this quarter. I would not expect 40GB to grow at the rate that it has been over the last couple of quarters just because as 100GB comes on again, at some point, 40GB is going to peak, and start to decline. So I think, it's likely that we'll see a lower percentage of 100GB -- correction, a lower percentage of 40GB in the quarter and a higher percentage of 100GB in the third quarter.

正如我所說，我認為 100GB 將在本季度增長。我預計 40GB 不會以過去幾個季度的速度增長，因為隨著 100GB 再次出現，在某個時刻，40GB 將達到峰值，然後開始下降。所以我認為，我們很可能會看到 100GB 的百分比較低——修正，本季度 40GB 的百分比較低，第三季度 100GB 的百分比較高。

And just to be clear, I think, I'm hearing that you still expect 40GB to grow, just not at the same rate that 100GB would grow. Is that -- am I hearing that correctly?

需要澄清的是，我認為，我聽說您仍然預計 40GB 會增長，只是增長速度與 100GB 不同。那是——我沒聽錯嗎？

I didn't mean to say that. I was just saying it won't grow -- 40GB won't likely grow faster than 100GB is all I'm saying. It could shrink or it could stay the same, but it won't grow as fast as 100GB.

我不是故意這麼說的。我只是說它不會增長——我只是說 40GB 的增長速度不太可能超過 100GB。它可能會縮小，也可能保持不變，但增長速度不會達到 100GB。

Okay. I appreciate the clarification. Nice job, guys.

好的。我很感謝您的澄清。幹得好，伙計們。

Thank you.

謝謝。

(Operator Instructions) Our next question comes from Fahad Najam from Cowen and Company. Please go ahead with your question.

（操作員說明）我們的下一個問題來自 Cowen and Company 的 Fahad Najam。請繼續你的問題。

You may have addressed this earlier, so I apologize if I'm asking this again. But can you help us understand regarding this third hyperscale customer that you noted? Where exactly you are in the qualification process with this customer?

您可能之前已經解決過這個問題，所以如果我再次問這個問題，我深表歉意。但是您能幫助我們了解您提到的第三個超大規模客戶嗎？您在該客戶的資格認證過程中具體處於什麼階段？

We are in the final stages of the qualification. But I mean, it's not done yet, so.

我們正處於資格賽的最後階段。但我的意思是，事情還沒有完成，所以。

Got it. And then talking about your R&D OpEx. Did I hear you correctly, that you expect your R&D dollars to come down sequentially? Just wanted to understand a little bit better what's driving the reduction in OpEx. Do you have plenty of capacity in place for this 100GB ramp? Do you think you won't need to be expanding your lines for the rest of the year?

知道了。然後談論您的研發運營支出。我沒聽錯吧，您預計研發費用會依次下降嗎？只是想更好地了解是什麼推動了運營支出的減少。您是否有足夠的容量來容納這個 100GB 的斜坡？您認為今年剩餘時間裡您不需要擴大生產線嗎？

I think, I heard sort of two questions embedded in there. The first one was regarding OpEx, right, and specifically, R&D. And yes, we said that we would expect our R&D to decline modestly sequentially from this quarter on a dollar basis.

我想，我聽到了其中包含的兩個問題。第一個是關於運營支出，對，特別是研發。是的，我們說過，我們預計我們的研發從本季度開始按美元計算將略有下降。

The second question seems to be more focused on CapEx, because you're asking about adding lines. And we didn't give specific guidance on equipment and machinery CapEx in terms of whether it's going up or down or what have you. But I did say that overall, CapEx should decline because we spent a lot of CapEx in this quarter on building projects, specifically, here at Sugar Land, and that part is ending. So we won't spend anywhere near as much on the buildings this quarter. As a result, the overall CapEx should decline.

第二個問題似乎更關注資本支出，因為您詢問的是添加線路。我們沒有就設備和機械資本支出是否上升或下降或有什麼給出具體指導。但我確實說過，總體而言，資本支出應該下降，因為本季度我們在建設項目上花費了大量資本支出，特別是在 Sugar Land，這部分正在結束。因此，本季度我們不會在建築物上花費那麼多錢。因此，整體資本支出應該會下降。

Got it. One last question. And that's on the NOLs that you guys have been carrying over. By my estimate, you should be exhausting your NOL credit somewhere between now and the third quarter. Can you help us understand your tax implications for the rest of the year?

知道了。最後一個問題。這就是你們一直延續的 NOL。根據我的估計，從現在到第三季度，您應該會耗盡您的 NOL 信用額度。您能幫助我們了解您對今年剩餘時間的稅務影響嗎？

No, we still have significant net operating losses available in the U.S. In Taiwan, we do -- we're coming up against the end, if you will, of those NOLs. But that's -- in the U.S., we still got significant NOLs available.

不，我們在美國仍然有重大的淨運營虧損。在台灣，我們確實有——如果你願意的話，我們即將結束這些 NOL。但在美國，我們仍然有大量可用的 NOL。

So no meaningful change in your non-GAAP tax rate for the foreseeable future?

那麼在可預見的未來，您的非公認會計原則稅率不會發生有意義的變化嗎？

Yes, that's right. It'll tick up a little bit this quarter probably because, again, the NOLs in Taiwan have been largely utilized, but nothing in the U.S.

恩，那就對了。本季度它會略有上升，可能是因為台灣的 NOL 已被大量利用，但美國卻沒有被利用。

Got it. Thank you so much.

知道了。太感謝了。

And ladies and gentlemen, we have reached the end of today's question-and-answer session. I'd like to turn the conference call back over to Thompson Lin for any closing remarks.

女士們、先生們，今天的問答環節到此結束。我想將電話會議轉回給 Thompson Lin，讓他發表結束語。

Okay. Thank you for joining us today. As always, we thank our investors, customers and employees for your continued support.

好的。感謝您今天加入我們。一如既往，我們感謝投資者、客戶和員工的持續支持。

Ladies and gentlemen, that does conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your telephone lines.

女士們先生們，今天的電話會議到此結束。我們非常感謝您參加今天的演講。您現在可以斷開電話線。