祥茂光電 (AAOI) 2017 Q1 法說會逐字稿

Good day, everyone.

今天是個好日子。

I will be your conference operator today.

今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to Applied Optoelectronics First Quarter 2017 Earnings Conference Call and Webcast.

現在，我歡迎大家參加應用光電2017年第一季度收益電話會議和網絡廣播。

(Operator Instructions) Please note that today's event is being recorded.

（操作員說明）請注意，今天的活動正在錄製中。

At this time, I would turn the conference call over to Maria Riley, Investor Relations for AOI.

這時，我會將電話會議轉給 AOI 投資者關係部門的 Maria Riley。

Miss Riley, you may begin your conference.

萊利小姐，您可以開始會議了。

Thank you.

謝謝。

I'm Maria Riley, Applied Optoelectronics Investor Relations, and I am pleased to welcome you to AOI's First Quarter 2017 Financial Results Conference Call.

我是應用光電投資者關係部的 Maria Riley，很高興歡迎您參加 AOI 2017 年第一季度財務業績電話會議。

After the market closed today, AOI issued a press release announcing its first quarter 2017 financial results and provided its outlook for the second quarter of 2017.

今天收盤後，AOI 發布新聞稿，公佈了 2017 年第一季度的財務業績，並提供了 2017 年第二季度的展望。

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 上獲取。

This call is being recorded and webcast live.

此次通話正在錄音並進行網絡直播。

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

該記錄的鏈接可以在 AOI 網站的投資者關係頁面上找到，並將存檔 1 年。

Joining us on today's call is Dr. Thompson Lin, AOI's founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer.

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 will give an overview of AOI's Q1 results and Stefan will provide financial details and the outlook for the second quarter.

Thompson 將概述 AOI 第一季度的業績，Stefan 將提供財務細節和第二季度的前景。

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存在重大差異。

You can identify forward-looking statements by terminologies such as may, well, should, expects, plans, anticipates, believes or estimates and by other similar expressions.

您可以通過“可能”、“好”、“應該”、“期望”、“計劃”、“預期”、“相信”或“估計”等術語以及其他類似表達來識別前瞻性陳述。

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.

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 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.

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。

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，也不能替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 指標之間的調節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 into the financial results, I'd like to announce that AOI management will attend the Jefferies Technology Group Investor Conference on May 9 in Miami and the Stifel Technology Internet and Media Conference on June 6 in San Francisco.

在公佈財務業績之前，我想宣布 AOI 管理層將出席 5 月 9 日在邁阿密舉行的 Jefferies Technology Group 投資者會議以及 6 月 6 日在舊金山舉行的 Stifel Technology 互聯網和媒體會議。

We hope to have the opportunity to see many of you there.

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' Founder, Chairman and CEO.

現在，我想把電話轉給應用光電創始人、董事長兼首席執行官林湯普博士。

Thompson?

湯普森？

Thank you, Maria.

謝謝你，瑪麗亞。

Thank you for joining us today.

感謝您今天加入我們。

We started off the year strong with another record quarter for AOI.

我們以強勁的 AOI 季度業績開啟了新的一年。

Revenue grew 91% over Q1 of last year to reach a record $96.2 million.

收入比去年第一季度增長 91%，達到創紀錄的 9620 萬美元。

Demand for our market-leading datacenter products continued to drive our exciting result this quarter.

對我們市場領先的數據中心產品的需求繼續推動我們本季度取得令人興奮的業績。

Datacenter revenue more than doubled over last year and represents our eighth consecutive quarter of record revenue.

數據中心收入比去年增加了一倍多，代表我們連續第八個季度創紀錄的收入。

In CATV, revenue grew 69% over the prior year to $13.1 million as the demand environment continued to improve.

隨著需求環境持續改善，CATV 收入比上年增長 69% 至 1,310 萬美元。

We achieved another record non-GAAP gross margin of 43.2%, driven by continued improvement in our manufacturing process and favorable product mix.

得益於製造工藝的持續改進和有利的產品組合，我們的非公認會計準則毛利率再創新高，達到 43.2%。

We also delivered a record non-GAAP operating margin of 27.1%, which reflects the strong operating leverage in our model.

我們還實現了創紀錄的 27.1% 的非 GAAP 運營利潤率，這反映了我們模型中強大的運營槓桿。

This led to record non-GAAP net income of $21.8 million or 22.6% of revenue, which is above our target model, and non-GAAP net income of $1.10 per diluted share using a weighted average diluted share count of 19.7 million.

這導致創紀錄的非 GAAP 淨利潤達到 2180 萬美元，佔收入的 22.6%，高於我們的目標模型，並且使用 1970 萬股加權平均稀釋後每股非 GAAP 淨利潤為 1.10 美元。

The first quarter also marked AOI's 20th year of business and innovation.

第一季度也標誌著 AOI 業務和創新的 20 週年。

Over these 20 years in business, we have made some incredible products and built a world-class company that we believe has proven it can compete and win in a competitive market.

在這 20 年的經營歷程中，我們製造了一些令人難以置信的產品，並建立了一家世界一流的公司，我們相信這家公司已經證明它能夠在競爭激烈的市場中競爭並獲勝。

Our commitment to technology, innovation, manufacturing excellence and extreme customer satisfaction has only become stronger since our founding.

自成立以來，我們對技術、創新、卓越製造和極高客戶滿意度的承諾只會變得更加堅定。

We believe these are areas of the quality that sets AOI apart, and our commitment to excellence in these areas is the foundation to build upon for our next 20 years.

我們相信，這些品質領域使 AOI 與眾不同，我們對這些領域卓越表現的承諾是我們未來 20 年發展的基礎。

In summary, AOI delivered an outstanding first quarter, and we are very pleased with the team's strong execution.

總而言之，AOI 第一季度的表現非常出色，我們對團隊強大的執行力感到非常滿意。

Our growth in the quarter further demonstrates our growing market share in advanced optics and reflects our continued commitment to operational excellence.

我們本季度的增長進一步證明了我們在先進光學領域不斷增長的市場份額，並反映了我們對卓越運營的持續承諾。

We remain focused on building on our momentum to drive growth and achieving our long-term financial objectives.

我們仍然專注於增強推動增長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 Q1 performance and outlook for Q2.

接下來，我將把電話轉給 Stefan，以審查我們第一季度業績的詳細信息和第二季度的前景。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

Total revenue for the first quarter grew 91% year-over-year to reach another record $96.2 million.

第一季度總收入同比增長 91%，達到再創紀錄的 9620 萬美元。

This was primarily driven by continued demand for our market-leading datacenter products.

這主要是由於對我們市場領先的數據中心產品的持續需求推動的。

Datacenter revenue in the first quarter grew 104% year-over-year to reach $79.6 million or 82.7% of our Q1 revenue.

第一季度數據中心收入同比增長 104%，達到 7960 萬美元，佔第一季度收入的 82.7%。

Our growth this quarter was driven by record demand for our 100G products and continued demand for our 40G products.

我們本季度的增長是由對 100G 產品創紀錄的需求以及對 40G 產品的持續需求推動的。

In this quarter, 62% of our datacenter revenue was derived from our 40G datacenter products and 30% was from our 100G products.

本季度，我們數據中心收入的 62% 來自我們的 40G 數據中心產品，30% 來自我們的 100G 產品。

I'd like to take this moment to provide some additional color on our product mix in the datacenter and the trends we are seeing.

我想藉此機會為我們數據中心的產品組合以及我們所看到的趨勢提供一些額外的信息。

As you may recall from our presentation at OFC, I mentioned that hyperscale datacenter operators generally use short-reach and long-reach transceivers within the datacenter.

您可能還記得我們在 OFC 的演講中，我提到超大規模數據中心運營商通常在數據中心內使用短距離和長距離收發器。

AOI mainly focuses on long-reach and long-reach light transceivers, those having transmission distances of 150 meters to 2 kilometers.

AOI主要關注長距離和長距離光收發器，傳輸距離為150米至2公里。

And there are 2 types of technologies used for long-reach transmission, parallel single mode, PSM; and CWDM.

用於長距離傳輸的技術有兩種：並行單模、PSM；和 CWDM。

Hyperscale datacenter operators will generally use a combination of PSM and CWDM transceivers within the datacenter.

超大規模數據中心運營商通常會在數據中心內組合使用 PSM 和 CWDM 收發器。

And when evaluating which of these 2 technologies to deploy, they consider the cost of the transceiver as well as the cost of the fiber cable.

在評估部署這兩種技術中的哪一種時，他們會考慮收發器的成本以及光纜的成本。

PSM uses 8 fibers total, 4 for transmit and 4 for receive, which makes this type of fiber cable significantly more expensive compared to the 2-fiber cable used in CWDM solutions.

PSM 總共使用 8 根光纖，其中 4 根用於發送，4 根用於接收，這使得這種類型的光纖電纜與 CWDM 解決方案中使用的 2 光纖電纜相比要昂貴得多。

However, the laser or lasers used for PSM are relatively inexpensive compared to CWDM lasers.

然而，與 CWDM 激光器相比，用於 PSM 的激光器相對便宜。

Because the cost of the PSM transceiver is lower than CWDM, PSM is more suitable for relatively short distances inside the datacenter.

由於 PSM 收發器的成本低於 CWDM，因此 PSM 更適合數據中心內部相對較短的距離。

However, for longer distances, the additional cost of the 8-fiber cable exceeds the cost of the more expensive CWDM transceiver.

然而，對於更長的距離，8 芯電纜的額外成本超過了更昂貴的 CWDM 收發器的成本。

Therefore, a CWDM solution is more economical for longer distance interconnections.

因此，對於長距離互連，CWDM 解決方案更加經濟。

The use case for these 2 technologies will vary based on the size of the datacenter and the fiber span needed for a particular interconnection.

這兩種技術的用例將根據數據中心的規模和特定互連所需的光纖跨度而有所不同。

At OFC, we highlighted that hyperscale datacenter operators are shifting to larger datacenters as well as a more sophisticated and intricate leaf-and-spine architecture that requires more interconnections within the datacenter.

在 OFC，我們強調超大規模數據中心運營商正在轉向更大的數據中心以及更複雜的葉脊架構，這需要數據中心內更多的互連。

And we see CWDM contributing to a greater portion of our business.

我們看到 CWDM 為我們的業務做出了更大的貢獻。

As a point of reference that we do not expect to provide on a go-forward basis, in Q1, revenue from CWDM transceivers accounted for 54% of our datacenter revenue, while PSM products generated 35% of datacenter revenue.

作為我們預計不會提供的參考，第一季度，CWDM 收發器的收入占我們數據中心收入的 54%，而 PSM 產品產生了數據中心收入的 35%。

These totals include both 40G and 100G products.

這些總數包括 40G 和 100G 產品。

Notably, the ratio of CWDM sales to overall datacenter revenue nearly doubled from Q1 of 2016.

值得注意的是，CWDM 銷售額佔數據中心整體收入的比例較 2016 年第一季度幾乎翻了一番。

We believe this trend towards increasing datacenter size will continue to drive the need for more CWDM products.

我們相信，數據中心規模不斷擴大的趨勢將繼續推動對更多 CWDM 產品的需求。

It is also worthwhile to note that for AOI, CWDM products generally have higher gross margins than PSM due to our advanced design and manufacturing capabilities for these products.

還值得注意的是，對於AOI而言，由於我們對這些產品的先進設計和製造能力，CWDM產品通常比PSM具有更高的毛利率。

In line with the trends that we see in the market, AOI continues to innovate and expand our product portfolio.

根據我們在市場上看到的趨勢，AOI 不斷創新並擴展我們的產品組合。

During the quarter, we announced a CWDM 10-kilometer 100G datacenter interconnect product that can also be leveraged within the datacenter.

本季度，我們推出了 CWDM 10 公里 100G 數據中心互連產品，該產品也可在數據中心內使用。

We also released several next-generation 200G CWDM products for intra-datacenter applications.

我們還發布了多款適用於數據中心內應用的下一代 200G CWDM 產品。

We believe that we are first to market in developing a 200G solution and the only company to showcase a solution with these capabilities at OFC.

我們相信，我們是第一個將 200G 解決方案推向市場的公司，也是唯一一家在 OFC 上展示具有這些功能的解決方案的公司。

These products leverage AOI's unique in-house laser design and manufacturing processes that can be optimized to produce 400G solutions and solutions with even higher data rates to address the industry's evolving needs for higher speed and more advanced optics.

這些產品利用 AOI 獨特的內部激光設計和製造工藝，可優化生產 400G 解決方案和具有更高數據速率的解決方案，以滿足行業對更高速度和更先進光學器件不斷變化的需求。

During the quarter, we had design wins with 3 new datacenter customers.

本季度，我們贏得了 3 個新數據中心客戶的設計。

Although the scope of these customers' datacenters are much smaller than our leading datacenter customers, we nevertheless think these design wins demonstrate our ability to meet the needs of a diverse customer base.

儘管這些客戶的數據中心範圍比我們領先的數據中心客戶小得多，但我們認為這些設計勝利證明了我們滿足多樣化客戶群需求的能力。

Based on current orders and forecasts from our customers, we believe that 2017 datacenter revenue should grow by more than 85% compared with 2016 and would include contributions from 3 hyperscale datacenter customers, each of whom will represent more than 10% of our annual revenue.

根據我們客戶的當前訂單和預測，我們認為2017年數據中心收入將比2016年增長85%以上，其中包括3個超大規模數據中心客戶的貢獻，每個客戶將占我們年收入的10%以上。

Turning to our cable television market.

轉向我們的有線電視市場。

Revenue from CATV products increased 69% year-over-year to reach $13.1 million compared with $7.7 million in Q1 of last year.

CATV 產品收入同比增長 69%，達到 1,310 萬美元，而去年第一季度為 770 萬美元。

On a sequential basis, CATV revenue was down 2%, reflecting better-than-normal Q1 seasonality due to an improving demand environment as cable MSOs transition to a more fiber-deep network architecture with DOCSIS 3.1.

有線電視收入環比下降 2%，反映出第一季度的季節性好於正常水平，原因是隨著有線 MSO 過渡到採用 DOCSIS 3.1 的更深光纖網絡架構，需求環境有所改善。

AOI remains at the forefront in developing and manufacturing advanced optical technology, and I'm pleased to announce that, during the quarter, we introduced a new high-performance 10G electro-absorption modulated laser that is designed for the next-generation fiber-to-the-home telecom and CATV networks.

AOI 在開發和製造先進光學技術方面仍然處於領先地位，我很高興地宣布，在本季度，我們推出了一款新型高性能 10G 電吸收調製激光器，該激光器專為下一代光纖到-家庭電信和有線電視網絡。

We leveraged our unique combination of technology and manufacturing processes in the design of these high-performance EMLs that operate with high data rates and are suitable for long transmission distances and demanding outdoor conditions.

我們在這些高性能 EML 的設計中利用了技術和製造工藝的獨特組合，這些 EML 以高數據速率運行，適合長傳輸距離和苛刻的戶外條件。

We believe these lasers are an enabling technology for widespread deployment of fiber-deep CATV or fiber-to-the-home architectures.

我們相信這些激光器是廣泛部署光纖深有線電視或光纖到戶架構的支持技術。

Our telecom products delivered revenue of $3.2 million, up 3% year-over-year, with consistent demand coming from ongoing deployments of advanced mobile telecom networks around the world.

我們的電信產品實現了 320 萬美元的收入，同比增長 3%，全球先進移動電信網絡的持續部署帶來了持續的需求。

For the quarter, 83% of our revenue was from datacenter products, 14% from CATV products, with the remaining 3% from FTTH, telecom and other.

本季度，我們 83% 的收入來自數據中心產品，14% 來自 CATV 產品，其餘 3% 來自 FTTH、電信和其他產品。

In the first quarter, we had 2 10%-or-greater customers in the datacenter business that contributed 56% and 19% of total revenue, respectively.

第一季度，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56%和19%。

Moving down the income statement.

將損益表向下移動。

As Thompson mentioned, we delivered another record non-GAAP gross margin of 43.2%, which is ahead of our guidance and target model and reflects an increase of 520 basis points when compared with the 38% reported in Q4 of 2016.

正如 Thompson 提到的，我們的非 GAAP 毛利率再創新高，達到 43.2%，這超出了我們的指導和目標模型，與 2016 年第四季度報告的 38% 相比增加了 520 個基點。

The increase in our Q1 non-GAAP gross margin was driven by continued improvement in our manufacturing processes and favorable product mix.

我們第一季度非公認會計原則毛利率的增長是由於我們製造工藝的持續改進和有利的產品組合推動的。

R&D expense was $7.2 million or 7.4% of revenue, up from $7.1 million or 8.3% of revenue in the prior quarter.

研發費用為 720 萬美元，佔收入的 7.4%，高於上一季度的 710 萬美元，佔收入的 8.3%。

Sales and marketing expense was $1.8 million or 1.9% of revenue, up from $1.7 million or 2% of revenue in the prior quarter.

銷售和營銷費用為 180 萬美元，佔收入的 1.9%，高於上一季度的 170 萬美元，佔收入的 2%。

G&A expense was $6.5 million or 6.8% of revenue compared with $6.6 million or 7.7% of revenue in the prior quarter.

一般管理費用為 650 萬美元，佔收入的 6.8%，而上一季度為 660 萬美元，佔收入的 7.7%。

This brings total operating expenses to $15.5 million or 16.1% of revenue compared with $15.3 million or 18% of revenue in the prior quarter.

這使得總運營支出達到 1,550 萬美元，佔收入的 16.1%，而上一季度為 1,530 萬美元，佔收入的 18%。

Non-GAAP operating income in Q1 increased to $26 million, up 53% when compared with operating income of $17 million in the prior quarter and up from an operating loss of $0.5 million in Q1 of last year.

第一季度非 GAAP 營業收入增至 2600 萬美元，較上一季度 1700 萬美元的營業收入增長 53%，也高於去年第一季度 50 萬美元的營業虧損。

Our non-GAAP operating margin in the quarter increased to 27.1%, up 710 basis points from the prior quarter.

本季度我們的非 GAAP 運營利潤率增至 27.1%，比上一季度提高 710 個基點。

Non-GAAP net income after-tax for the first quarter increased to $21.8 million, up 41% when compared with net income of $15.5 million in the prior quarter and up from a net loss of $0.6 million in Q1 of last year.

第一季度非 GAAP 稅後淨利潤增至 2180 萬美元，較上一季度淨利潤 1550 萬美元增長 41%，也高於去年第一季度 60 萬美元的淨虧損。

We reported non-GAAP net income of $1.10 per diluted share, up from $0.84 in the prior quarter and a loss of $0.04 per basic share in Q1 of last year.

我們公佈的非公認會計準則每股攤薄淨利潤為 1.10 美元，高於上一季度的 0.84 美元，去年第一季度每股基本股虧損 0.04 美元。

GAAP net income for Q1 was $19.8 million or $1 per diluted share compared with GAAP net income of $14.2 million or $0.77 per diluted share in the prior quarter.

第一季度 GAAP 淨利潤為 1,980 萬美元，即稀釋後每股 1 美元，而上一季度 GAAP 淨利潤為 1,420 萬美元，即稀釋後每股 0.77 美元。

The Q1 weighted average fully diluted share count was approximately 19.7 million shares.

第一季度加權平均完全稀釋股數約為 1,970 萬股。

Turning now to the balance sheet.

現在轉向資產負債表。

We ended Q1 with $60.6 million in total cash, cash equivalents, short-term investments and restricted cash compared with $52 million at the end of the previous quarter.

第一季度末，我們的現金、現金等價物、短期投資和限制性現金總額為 6060 萬美元，而上一季度末為 5200 萬美元。

As of March 31, we had $57.5 million in inventory, an increase of $5.7 million from Q4.

截至 3 月 31 日，我們的庫存為 5750 萬美元，比第四季度增加了 570 萬美元。

Accounts receivable increased to $66.8 million compared with $49.8 million last quarter.

應收賬款增加至 6,680 萬美元，而上季度為 4,980 萬美元。

And accounts payables increased approximately $11.9 million over Q4.

應付賬款比第四季度增加了約 1190 萬美元。

During the quarter, we also paid down our debt by $13.7 million.

本季度，我們還償還了 1,370 萬美元的債務。

This includes $12.2 million paid on our credit facilities with EastWest Bank, $1.2 million to pay off certain equipment leases in Taiwan and $0.3 million to China Construction Bank, bringing our balance on our line of credit with CCB to 0.

其中包括向華美銀行支付的 1,220 萬美元信貸額度、用於償還台灣某些設備租賃的 120 萬美元以及向中國建設銀行支付的 30 萬美元，使我們與建行的信貸額度餘額為零。

As we outlined in our 8-K filed with the SEC on April 4, 2017, since we've paid off and subsequently terminated this credit facility with CCB, the bank released all claims to the collateral we had offered to secure the debt.

正如我們在2017 年4 月4 日向SEC 提交的8-K 中所述，由於我們已經還清並隨後終止了與建行的信貸安排，該銀行解除了對我們為擔保債務而提供的抵押品的所有債權。

Moving to capital investments.

轉向資本投資。

We made a total of $7.6 million in capital investments in the quarter, including $5.6 million in production equipment and machinery and $1.1 million on construction and building improvements.

本季度我們總共進行了 760 萬美元的資本投資，其中包括 560 萬美元的生產設備和機械投資以及 110 萬美元的建築和建築改進投資。

Our free cash flow in the quarter was approximately $2.8 million.

本季度我們的自由現金流約為 280 萬美元。

Moving now to our Q2 outlook.

現在轉向我們對第二季度的展望。

We expect Q2 revenue to be between $106 million and $112 million, representing 92% to 103% year-over-year growth.

我們預計第二季度收入將在 1.06 億美元至 1.12 億美元之間，同比增長 92% 至 103%。

We expect Q2 non-GAAP gross margin to be in the range of 41% to 42.5%.

我們預計第二季度非 GAAP 毛利率將在 41% 至 42.5% 之間。

Non-GAAP net income is expected to be in the range of $22.2 million to $24.3 million and non-GAAP EPS between $1.09 per share and $1.19 per share using a weighted average fully diluted share count of approximately 20.4 million shares.

根據約 2040 萬股的加權平均完全稀釋股數，預計非 GAAP 淨利潤將在 2220 萬美元至 2430 萬美元之間，非 GAAP 每股收益將在每股 1.09 美元至 1.19 美元之間。

We expect our income tax rate for the quarter to be approximately 20.5%.

我們預計本季度的所得稅稅率約為 20.5%。

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 our first question today comes from Paul Silverstein from Cowen.

（操作員說明）今天我們的第一個問題來自 Cowen 的 Paul Silverstein。

Stefan, I appreciate your commentary on the competitive differences in terms of cost points on PSM versus CWDM.

Stefan，我很欣賞您對 PSM 與 CWDM 成本點競爭差異的評論。

But can I ask you, given the concern on The Street about competition, can I ask you to revisit the issue and share with us what you and Thompson are seeing in terms of other folks, other competitors, the competition in general, in particular, at your 3 big Web 2.0 customers?

但是，考慮到華爾街對競爭的擔憂，我可以請你重新審視這個問題，並與我們分享你和湯普森在其他人、其他競爭對手、總體競爭方面的看法，特別是，您的3 大Web 2.0 客戶？

Why should The Street not be concerned given that there certainly appears to be concern that you're going to be displaced to one extent or another, especially in the 100-gig arena?

既然人們肯定會擔心你會在某種程度上被取代，特別是在 100 場演出的舞台上，那麼《華爾街日報》為什麼不應該擔心呢？

Paul, well, that's a good question to start off with.

保羅，嗯，這是一個很好的開始問題。

So think first of all, as we said all along, the most important factor for our success with these customers has been our ability to scale rapidly to meet their needs and to have a very low cost structure that allows us to get high gross margin while still meeting their pricing expectations.

因此，首先想想，正如我們一直以來所說的，我們在這些客戶中取得成功的最重要因素是我們能夠快速擴展以滿足他們的需求，並擁有非常低的成本結構，使我們能夠獲得高毛利率，同時仍然滿足他們的定價預期。

We believe relative to any other technology out there that we maintain a significant differential in terms of cost, that is that we're the lowest-cost technology out there by a fairly wide margin.

我們相信，相對於任何其他技術，我們在成本方面保持著顯著的差異，也就是說，我們是成本最低的技術，並且遙遙領先。

And this is particularly true when it comes to the CWDM products.

對於 CWDM 產品來說尤其如此。

As we mentioned in the prepared remarks, the CWDM products make up the majority.

正如我們在準備好的發言中提到的，CWDM 產品佔大多數。

As a percentage of the overall revenue, it's more than doubled since last year.

佔總收入的百分比自去年以來增加了一倍多。

And that's because these datacenters are getting larger.

這是因為這些數據中心變得越來越大。

And as a consequence of the larger size of the datacenters, there's more emphasis from these customers on the CWDM products which, for us, are more highly differentiated and carry a higher gross margin.

由於數據中心規模更大，這些客戶更加重視 CWDM 產品，對我們來說，這些產品具有更高的差異化和更高的毛利率。

So all the trends that we're seeing, I think, are very positive for our technology.

因此，我認為我們看到的所有趨勢對我們的技術都是非常積極的。

And even on the relatively smaller PSM products, we still maintain that we have a significant edge in terms of cost, mainly due to our vertical integration and the amount of attention that we've paid to the manufacturing process, the automation that we put in place and the other factors that we've talked about a number of times that have really differentiated our manufacturing processes.

即使在相對較小的 PSM 產品上，我們仍然認為我們在成本方面具有顯著優勢，這主要歸功於我們的垂直整合以及我們對製造流程和自動化的關注地點以及我們多次討論過的其他因素確實使我們的製造工藝與眾不同。

And Stefan, can you -- I know you've given it before, my apologies, but can you remind me what that percentage increase was, to what, from what in terms of CWDM as a percentage of the datacenter percentage of total revenue?

Stefan，我知道你之前已經說過了，我很抱歉，但是你能提醒我這個百分比的增長是多少，從 CWDM 佔數據中心總收入的百分比來看是多少嗎？

Sure.

當然。

So what we've said was that the -- in Q1, the CWDM transceivers accounted for 54% of our datacenter revenue, so 54% for CWDM in Q1.

所以我們所說的是，在第一季度，CWDM 收發器占我們數據中心收入的 54%，因此 CWDM 在第一季度佔 54%。

PSM was 35% of our datacenter revenue.

PSM 占我們數據中心收入的 35%。

And that basically doubled from Q1 of last year.

這基本上比去年第一季度翻了一番。

In other words, the percentage of CWDM relative to the total more than -- or approximately doubled from last year.

換句話說，CWDM 佔總數的百分比比去年增加了一倍多或大約一倍。

Okay.

好的。

And that was for both 100 gig and for 40 gig?

那是針對 100 場演出和 40 場演出的嗎？

Correct.

正確的。

That's an aggregate of both 40G and 100G, CWDM and PSM.

這是 40G 和 100G、CWDM 和 PSM 的總和。

All right.

好的。

And then, along the same lines, the 3 big Web 2.0 folks, Amazon, Facebook and Microsoft, 2 of them were 10% customers this quarter.

然後，按照同樣的思路，三大 Web 2.0 公司：亞馬遜、Facebook 和微軟，其中兩家在本季度佔據了 10% 的客戶。

I recognize you don't want to go too far into detail on any one of them.

我知道您不想對其中任何一個過於詳細。

But if I can ask you generically in terms of one of them being less than 10%, is that just the vagaries of rollouts?

但如果我可以籠統地問你，其中一項低於 10%，這只是推出過程中的變幻莫測嗎？

Any insight you can share in terms of what's going on with that, the one that was not 10% in particular?

您能分享一下關於這方面的情況嗎，特別是不是 10% 的情況？

Sure.

當然。

It's very much the same as we said last quarter, that there are some rollout vagaries, as you put it, that are occurring there.

這與我們上個季度所說的非常相似，正如您所說，那裡正在發生一些異常情況。

We believe very strongly that we have not lost market share with this customer.

我們堅信我們沒有失去該客戶的市場份額。

That it's just overall kind of a slow time for them in their deployments as they get ready to gear up 100 gig.

總體而言，當他們準備好 100 台演出時，他們的部署過程比較緩慢。

And we expect them to grow in the future.

我們預計他們未來會成長。

And again, I don't think we've lost any share.

再說一次，我認為我們沒有失去任何份額。

And Paul, we have -- as Stefan said, we believe both of these 3 customers will be 10% customer in this year.

Paul，正如 Stefan 所說，我們相信這 3 個客戶今年將佔 10% 的客戶。

All right.

好的。

And guys, just to be clear, my last question on this.

伙計們，澄清一下，這是我的最後一個問題。

As of now, you don't see -- you don't foresee, you don't anticipate being intercepted in a meaningful way at any of Amazon, Microsoft or Facebook.

截至目前，你還沒有看到——你沒有預見到，你預計不會在亞馬遜、微軟或 Facebook 的任何一家公司以有意義的方式被攔截。

There's nothing you're aware of at this point that will cause you concern that there's a share shift to one or more other competitors?

目前您沒有意識到任何事情會導致您擔心股份會轉移給一個或多個其他競爭對手嗎？

That's correct.

這是正確的。

Our next question comes from Troy Jensen from Piper.

我們的下一個問題來自 Piper 的 Troy Jensen。

So Stefan, I've got a question for you.

斯特凡，我有一個問題要問你。

If I look back at some of your investor slide deck, and I think it was exiting the year.

如果我回顧一下你們的一些投資者幻燈片，我認為它已經退出了這一年。

You said you're making 400,000 lasers per month at that time, and you expect to be at 700,000 to 1 million by the end of this year.

您說當時每月生產 40 萬個激光器，預計到今年年底產量將達到 70 萬到 100 萬個。

I'd be curious to know where you are currently.

我很想知道你現在在哪裡。

If you could just -- I'd like to know just kind of the conviction -- obviously, you're getting some visibility from customers who say that.

如果你能——我想知道某種信念——顯然，你會從這麼說的客戶那裡得到一些知名度。

But when we look at that type of doubling-ish of lasers, what does that mean to revenues at the end of the year?

但是，當我們看到這種類型的激光器數量增加一倍時，這對年底的收入意味著什麼？

Well, I won't give you the exact number that we're at, but we're certainly well on track for the plans that we've outlined.

好吧，我不會告訴你我們的確切數字，但我們確實正在按照我們概述的計劃順利進行。

As far as our plans for the use of those devices, right now, we're using every device that we can make in our internal production, basically.

就我們使用這些設備的計劃而言，目前我們基本上正在使用我們可以在內部生產中製造的所有設備。

And given the forecast that we see from the customers, I don't see that situation changing, that is, I would anticipate that all the lasers or substantially all the lasers that we're producing, at least the ones that are destined for datacenter applications, those will go straight into our own transceivers and be sold to our customers.

鑑於我們從客戶那裡看到的預測，我認為這種情況不會改變，也就是說，我預計我們正在生產的所有激光器或幾乎所有激光器，至少是用於數據中心的激光器應用程序，這些將直接進入我們自己的收發器並出售給我們的客戶。

So if we double the number of lasers that we're making, that would double the number of transceivers essentially.

因此，如果我們將製造的激光器數量增加一倍，那麼收發器的數量基本上也會增加一倍。

Will it double your revenues?

你的收入會翻倍嗎？

There's a number of factors there, right?

這裡面有很多因素，對吧？

I mean it would depend on the type of transceivers.

我的意思是這取決於收發器的類型。

Obviously, we see a trend towards more 100 gig and more CWDM, as I mentioned in the remarks.

顯然，正如我在評論中提到的，我們看到了更多 100 場演出和更多 CWDM 的趨勢。

So those generally carry higher ASPs, without getting too much into the details on specifics.

因此，這些產品通常具有較高的平均售價，無需過多關注具體細節。

But certainly, those carry higher ASPs than 40-gig PSM-type products.

但可以肯定的是，這些產品的平均售價高於 40 GB PSM 型產品。

So the trends are all there that would anticipate not a reduction in unit sale -- unit price at least.

因此，所有趨勢都表明銷量不會減少——至少單價不會減少。

Yes, my point exactly.

是的，我的觀點正是如此。

All right.

好的。

Then just quickly, just on the gross margin guidance.

然後很快，就毛利率指導。

It's a little bit below the Q1 level.

略低於第一季度的水平。

I'm just curious to know if this is just conservatism, or I guess I would've thought scale and the mix would benefit the gross margins, but just curious if you could see any pricing dynamics there.

我只是想知道這是否只是保守主義，或者我想我會認為規模和組合將有利於毛利率，但只是好奇你是否能看到那裡的任何定價動態。

The difference there is really coming from our cable TV segment, most of the difference is coming from the cable TV segment.

差異實際上來自我們的有線電視部門，大部分差異來自有線電視部門。

We're seeing -- relative to last quarter, we're seeing a little bit more orders for products that would be destined for sort of emerging market type cable TV networks, which generally carry a lower gross margin for us, so it's really a product mix within that cable segment.

我們看到 - 相對於上個季度，我們看到用於新興市場類型有線電視網絡的產品訂單有所增加，這些網絡通常為我們帶來較低的毛利率，所以這確實是一個該電纜領域的產品組合。

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

我們的下一個問題來自 Roth Capital Partners 的 Brian Alger。

Obviously, there's been a fair amount of hand-wringing over the past couple of weeks.

顯然，過去幾週出現了相當多的令人不安的情況。

I'm wondering where we are in terms of that crossover and what your expectations are as we go through the year.

我想知道我們在跨界方面的進展以及您對這一年的期望是什麼。

Clearly 100 gig is ramping, but given your customer mix, are you still anticipating that you'll lag the industry in terms of your crossover point?

顯然，100 場演出正在增加，但考慮到您的客戶組合，您是否仍然預計自己會在交叉點方面落後於行業？

Brian, when you talk about crossover point, what exactly are you referring to?

Brian，當你談論交叉點時，你到底指的是什麼？

Sorry.

對不起。

100 gig versus 40 gig.

100 演出與 40 演出。

And I'm talking revenues relative to units.

我說的是相對於單位的收入。

So you're asking, when do we expect the 100-gig revenue will overtake 40 gig revenue?

那麼您會問，我們預計 100 場演出的收入何時會超過 40 場演出的收入？

I mean, if you're asking that, we don't really disclose that on a forward-looking basis.

我的意思是，如果你問這個，我們並沒有真正前瞻性地披露這一點。

We think that obviously 100 gig is growing.

我們認為顯然 100 場演出正在增長。

40 gig for us is also very strong.

40場演出對我們來說也非常強大。

It was -- we were actually -- we had another record quarter in 40-gig sales as well.

實際上，我們的季度銷量也創下了 40 場的紀錄。

It was pretty much flat over last quarter, but it was up ever so slightly.

與上季度相比基本持平，但略有上升。

So we're expecting a good year both in 40 gig and 100 gig.

因此，我們預計 40 場演出和 100 場演出都會有美好的一年。

But as far as when that crossover happens, we don't really talk about that.

但至於這種交叉何時發生，我們並沒有真正談論它。

Well, maybe shifting to more about the industry.

好吧，也許轉向更多有關該行業的內容。

I think at the Analyst Day down at OFC, you talked about how the industry as a whole or as -- datacenter customers as a whole are shifting rapidly towards 100 gig.

我認為在 OFC 的分析師日上，您談到了整個行業或整個數據中心客戶如何迅速轉向 100 兆。

And while that might not [pair] up with you guys, given your customer base, that transition was well underway.

雖然這可能不適合你們，但考慮到你們的客戶群，這種轉變正在順利進行。

Can you maybe comment in terms of the progression that the industry has seen moving towards 100 gig versus 40 gig?

您能否評論一下行業向 100 場演出與 40 場演出相比的進展？

I don't have any data on, I mean, where the industry is in that transition.

我的意思是，我沒有任何關於該行業處於轉型階段的數據。

I mean, I can only speak to our numbers.

我的意思是，我只能用我們的數字說話。

As I said, we're seeing very strong results both for 100 gig and 40 gig.

正如我所說，我們看到 100 gig 和 40 gig 都取得了非常強勁的成果。

40 gig obviously started with a higher base, so the growth rate there is less.

40演出顯然是從較高的基數開始的，因此增長率較低。

100 gig is growing very strongly.

100 gig 增長非常強勁。

But I can't really comment on the overall industry outlook.

但我無法對整個行業前景做出真正的評論。

I mean, I don't have that data.

我的意思是，我沒有這些數據。

Okay, that's fair.

好吧，這很公平。

And in terms of just looking at the OpEx, you guys have done a really good job of driving a lot of leverage to the bottom line.

就運營支出而言，你們在提高利潤方面做得非常好。

And we kind of look at the progression here, Q2 guidance versus Q1, that sort of sequential evolution, is that something we should consider to be consistent from a dollar basis?

我們看看這裡的進展，第二季度的指導與第一季度的指導，這種連續的演變，我們應該考慮從美元的基礎上保持一致嗎？

Right now, we're basically shipping everything we can manufacture.

現在，我們基本上正在運送我們可以製造的所有東西。

So the growth rate is not dependent on demand.

因此，增長率並不取決於需求。

It's dependent on our ability to continue to ramp our manufacturing.

這取決於我們繼續提高製造能力的能力。

So we talked just a moment ago with Troy, he mentioned some of the figures that we had projected in terms of laser sales.

剛才我們與特洛伊進行了交談，他提到了我們在激光銷售方面預測的一些數字。

I think that you can draw some conclusions from there.

我認為你可以從中得出一些結論。

But there's a limit to how fast we can increase our production capacity.

但我們提高產能的速度是有限的。

So that's really the limiting factor to the growth rate.

所以這確實是增長率的限制因素。

And 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。

A couple of things.

有幾件事。

Just a quick, quick housekeeping one I missed.

只是我錯過了一次快速、快速的家政服務。

You gave us a CapEx number for the quarter?

您給了我們本季度的資本支出數字嗎？

Yes, the CapEx number total was $7.6 million, and it was divided at $5.6 million for production equipment and machinery and $1.1 million for construction and building improvements.

是的，資本支出總額為 760 萬美元，其中 560 萬美元用於生產設備和機械，110 萬美元用於建築和建築改進。

And where do you see this going in the balance of the year?

您認為今年剩下的時間裡這種情況會發生什麼？

Do you have a budget set?

你有預算嗎？

Yes, we do have a budget set.

是的，我們確實有預算。

We don't really disclose that number for the year on a forward-looking basis.

我們並沒有真正前瞻性地披露今年的數字。

The -- as we've said often that CapEx for us is a precursor to revenue, especially that part that's dedicated to the machinery and equipment.

正如我們經常所說，資本支出對我們來說是收入的先決條件，尤其是專門用於機械和設備的部分。

And we can put that to work very quickly in our production processes.

我們可以在我們的生產過程中快速地將其付諸實踐。

So I would anticipate that if we're growing our production capacity, which I've indicated that we are, that we will be growing our CapEx through the year as well.

因此，我預計，如果我們提高生產能力（我已經表明了這一點），我們全年的資本支出也將增加。

But as far as how that breaks out quarter-to-quarter and what the total year is, we haven't disclosed that.

但至於季度環比的情況以及全年的情況，我們還沒有透露。

Great.

偉大的。

And I appreciate the education you provided on the CWDM versus PSM4.

我很欣賞您提供的關於 CWDM 與 PSM4 的教育。

That was helpful.

這很有幫助。

Just maybe additional level of detail.

也許只是額外的細節水平。

Is there a different number of lasers used in each of those devices?

這些設備中使用的激光器數量是否不同？

No, CWDM and PSM both use 4 lasers in general.

不是，CWDM和PSM一般都使用4個激光器。

Now, that's for our technology.

現在，這就是我們的技術。

There are other technologies that use a single laser in the PSM variety.

還有其他使用 PSM 品種中的單個激光器的技術。

However, that laser is a different laser.

然而，該激光是不同的激光。

It's a higher-power device and it has some other special features on there.

它是一種功率更高的設備，並且還有一些其他特殊功能。

So it's not exactly the same laser that would be used in our PSM approach.

因此，它與我們的 PSM 方法中使用的激光器並不完全相同。

Simon, this is Thompson.

西蒙，這是湯普森。

CWDM is (inaudible) and the (inaudible) range is much narrower, and it's much tougher to manufacture.

CWDM（聽不清）並且（聽不清）範圍要窄得多，並且製造起來更加困難。

And right now, we believe there's some short supply in 25G (inaudible) lasers.

目前，我們認為 25G（聽不清）激光器存在供應短缺。

At AOI, we believe we're a leader in the 25G lasers, especially in CWDM area, based on performance, quality and volume.

在 AOI，我們相信我們在 25G 激光器領域處於領先地位，尤其是在 CWDM 領域，基於性能、質量和數量。

So that actually nicely sets up my next question, is we've sort of heard this bear case of companies that would sell merchant elements.

因此，這實際上很好地提出了我的下一個問題，我們已經聽到了有關出售商業元素的公司的悲觀案例。

They would sell lasers and semiconductors to other manufacturers or to contract manufacturers that could then compete with you.

他們會將激光器和半導體出售給其他製造商或合同製造商，然後這些製造商可以與你競爭。

So I guess one side of the bear case about your company is that there are other competitors taking share.

因此，我認為貴公司的悲觀理由之一是其他競爭對手正在搶占份額。

The other side is this sort of unidentified competitor that would buy merchant elements.

另一方是這種不明身份的競爭對手，他們會購買商業元素。

Can you help us understand the potential for that as a competitive threat?

您能幫助我們了解這種潛在的競爭威脅嗎？

Hopefully that makes sense, and I can be more explicit if you want.

希望這是有道理的，如果你願意的話我可以更明確。

No, I understand what you're getting at.

不，我明白你的意思。

So we have a great deal of vertical integration, as we've talked about ever since we went public.

因此，正如我們自上市以來一直在談論的那樣，我們進行了大量的垂直整合。

We do a lot of these things in house.

我們在內部做了很多這樣的事情。

We make our own lasers, we build our own light engines, we do our own production, we do our own testings, okay?

我們製造自己的激光器，我們建造自己的光引擎，我們自己生產，我們自己測試，好嗎？

There are companies out there that have talked about sort of disaggregating that, if you will, and one company will grow the laser chip, somebody else will do the assembly, somebody else will do the test, somebody makes the chips, et cetera, et cetera, okay.

有些公司已經討論過某種分解，如果你願意的話，一家公司將生產激光芯片，其他公司將進行組裝，其他公司將進行測試，其他公司將製造芯片，等等，等等諸如此類，好吧。

Relative to our business model -- I mean, this has been the big advantage of our business model.

相對於我們的商業模式——我的意思是，這是我們商業模式的一大優勢。

And I will point out to you, at this point, we've got a 5-plus year track record in the datacenter industry of high -- highly successful business, as evidenced by this quarter and our previous -- really, going back 4, 5 years, you can look at our results.

我要向您指出，目前，我們在數據中心行業擁有 5 年多的高度成功業務記錄，本季度和上一季度就證明了這一點，實際上，可以追溯到 4 年，5年，你可以看看我們的成果。

The vertically integrated business model, we believe, is the best way to economically manufacture these datacenter products.

我們相信，垂直整合的業務模式是經濟地製造這些數據中心產品的最佳方式。

And there are competitors out there that are talking about doing different business models.

還有一些競爭對手正在談論採用不同的商業模式。

But economically, that just doesn't make sense.

但從經濟角度來看，這是沒有意義的。

If you have to add multiple companies' profit margins in there along with all the vagaries of the manufacturing that is yields and things that change over time and inventory management, we've done the modeling and there's just no way that, that results in a product that's less expensive for the end customer than buying it from AOI even at the profit margins or gross profit levels that we're at today.

如果您必須將多家公司的利潤率以及製造過程中的所有變幻莫測的因素（即產量以及隨時間和庫存管理而變化的因素）相加，我們已經完成了建模，但這是不可能的，這會導致即使按照我們今天的利潤率或毛利潤水平，對於最終客戶來說，這種產品也比從 AOI 購買更便宜。

So yes, it's possible to do it that way potentially, but it doesn't result in a lower-cost product.

所以，是的，這樣做是可能的，但它不會產生成本更低的產品。

Great.

偉大的。

And I just want to -- sorry, Thompson, go on.

我只想——對不起，湯普森，繼續。

All their gross margin will be very low compared to AOI's.

與 AOI 相比，他們的毛利率將非常低。

Think about it.

想一想。

If you take AOI's gross margin and divide it by 3 companies, what will be the gross margin of these 3 companies doing -- selling laser, doing types of manufacture, selling transceiver or selling chips?

如果你把AOI的毛利率除以3家公司，這3家公司的毛利率是多少——賣激光器、做類型製造、賣收發器還是賣芯片？

And all of that assumes that they would be as good as AOI is at all of those operations, which we don't think is possible given the fact that we are the demonstrated leader in this industry.

所有這些都假設它們在所有這些操作中都與 AOI 一樣好，但考慮到我們是該行業的領先者，我們認為這是不可能的。

Great.

偉大的。

I appreciate that.

我很感激。

So one last one, if I might, is sort of thinking about the trajectory for the company in terms of, in one dimension, you mentioned 3 new datacenter customers.

所以最後一個，如果可以的話，是從一個維度思考公司的發展軌跡，你提到了 3 個新的數據中心客戶。

So one avenue for evolution is adding more customers with the products you have.

因此，進化的一種途徑是用你擁有的產品增加更多的客戶。

Another dimension might be to introduce new products, and you mentioned the 10-kilometer products.

另外一個維度可能是推出新產品，你提到了10公里產品。

How should we think about the 2 dimensions in terms of either diversifying the customer base with products you have versus the weighting of introducing new products?

我們應該如何考慮這兩個維度：利用現有產品實現客戶群多元化與引入新產品的權重？

What other things might you introduce?

您還可以介紹哪些其他內容？

Well, yes, actually, we introduced not only the 10-kilometer product, but we also talked about the 200G product that we showed off at OFC.

嗯，是的，其實我們不僅介紹了10公里的產品，我們還談到了我們在OFC上展示的200G產品。

We were the, we believe, the only company that really highlighted that 200G product at OFC.

我們相信，我們是唯一一家在 OFC 上真正強調 200G 產品的公司。

And we talked in very general terms about our evolution towards 400G.

我們非常籠統地討論了我們向 400G 的演進。

So we are definitely not slowing down in any way.

所以我們絕對不會以任何方式放慢腳步。

We're actually speeding up our development in terms of new products.

我們實際上正在加快新產品的開發。

At the same time, though, we are -- and we have said very consistently that our products are very applicable across a wide range, a diverse customer base, and we're working very hard and having quite a bit of success at getting new customers into our fold as well.

但與此同時，我們一直表示，我們的產品非常適用於廣泛的、多樣化的客戶群，我們正在非常努力地工作，並在獲得新產品方面取得了相當大的成功。客戶也加入我們的行列。

(Operator Instructions) Our next question comes from Richard Shannon from Craig-Hallum.

（操作員說明）我們的下一個問題來自 Craig-Hallum 的 Richard Shannon。

I guess my first one, and it might be a permutation of one asked earlier, but you talked about expecting, I think 82% or 85% growth in datacenter revenues this year, Stefan.

我想我的第一個答案可能是之前問到的一個排列，但你談到預計今年數據中心收入將增長 82% 或 85%，Stefan。

Any way that you can help us think about relative growth between 40 and 100 gig?

您有什麼辦法可以幫助我們考慮 40 到 100 場演出之間的相對增長嗎？

And I think most people are probably interested in whether 40 is expected to grow or not.

我想大多數人可能對 40 是否會增長感興趣。

Any way you can quantify or characterize that would be great to hear.

任何可以量化或表徵的方式都會很高興聽到。

Well, I think I should mention for us, we talked in the fourth quarter of last year about a new third large datacenter customer that we had at that time, started to get business from at that time.

嗯，我想我應該為我們提一下，我們在去年第四季度談到了我們當時擁有的一個新的第三個大型數據中心客戶，當時就開始從中獲得業務。

That customer continues to grow and they are buying significant quantities of 40G.

該客戶持續增長，並且正在大量購買 40G。

So when you talk about for AOI, will 40G be higher in 2017 compared to 2016, the answer is probably yes.

所以當你談到AOI，2017年40G會比2016年更高時，答案可能是肯定的。

However, I would caution that, that doesn't necessarily mean that that's the same thing for the industry, right, because we added a significant new customer for 40G during the year.

不過，我要提醒的是，這並不一定意味著行業也是如此，對吧，因為我們在這一年中增加了一個重要的 40G 新客戶。

Overall, I would say in general terms, while I can't speak to the specifics of the industry, I think it's widely acknowledged and most people would agree that 100 gig is growing.

總的來說，我會籠統地說，雖然我無法談論該行業的具體情況，但我認為這是廣泛認可的，大多數人都會同意 100 份演出正在增長。

We were first to market with 100-gig products, first to volume with those products and we believe we're the cost leader on those products.

我們首先將 100 兆產品推向市場，首先批量生產這些產品，並且我們相信我們是這些產品的成本領先者。

So I think we're going to be very successful in both 100G and 40G throughout the year.

所以我認為我們全年在 100G 和 40G 方面都將取得非常成功。

Okay, perfect, that's helpful.

好的，完美，很有幫助。

Second question, following up on your topic of CWDM4 versus PSM4, and by the way I'll add my thoughts on that's a great topic to bring up, so please do so in the future, if you can.

第二個問題，關於 CWDM4 與 PSM4 的主題，順便說一下，我將添加我的想法，這是一個很好的主題，所以如果可以的話，請在將來這樣做。

You talked about a split between those 2 that includes both 40 and 100 gig.

您談到了這兩者之間的劃分，其中包括 40 場演出和 100 場演出。

Is that split -- is that similar specifically on the 100 gig version, splitting that out specifically, is that closer?

這種分割是不是——特別是在 100 場演出的版本上，特別是分割出來，是不是更接近？

Is that skewed a lot from that percentage?

這個比例是否偏離了很多？

It varies a little bit from quarter-to-quarter.

每個季度略有不同。

Again, one of the things that I was trying to illustrate with that rather long technical discussion of PSM versus CWDM is really that it's a very complex decision-making process that customers have to make.

再說一次，我試圖通過 PSM 與 CWDM 相當長的技術討論來說明的一件事是，這是客戶必須做出的一個非常複雜的決策過程。

They're very sophisticated about how they make those decisions and there's no -- you can't just say, well, one customer uses this or one customer uses PSM, one uses CWDM, or all datacenters like this are architected this way or that way.

他們對於如何做出這些決策非常複雜，而且你不能只是說，一個客戶使用這個，或者一個客戶使用 PSM，一個客戶使用 CWDM，或者所有像這樣的數據中心都是這樣或那樣構建的方式。

There's a lot of variation between customers and even, from time to time, within a customer based on the particular part of their network that they're building out at that time.

客戶之間存在很大差異，甚至有時客戶內部也存在很大差異，具體取決於他們當時正在構建的網絡的特定部分。

So it's not -- there's no really good easy answer to that.

所以這不是——對此沒有真正好的簡單答案。

Generally speaking, I mean, there are significant quantities of both PSM and CWDM being used at 100 gig, but CWDM is becoming larger as a percentage of the overall 100 gig as we move forward.

一般來說，我的意思是，在 100 gig 中使用了大量的 PSM 和 CWDM，但隨著我們的發展，CWDM 在整個 100 gig 中所佔的比例正在變得越來越大。

That is true.

那是真實的。

Okay.

好的。

My last question on gross margin, Stefan.

我關於毛利率的最後一個問題，斯特凡。

You guys did an excellent job over the last year, getting to this level of 42% or so, and your guidance shows you're expecting to keep that up here.

你們去年的表現非常出色，達到了 42% 左右的水平，你們的指導表明你們希望保持這一水平。

Looking across the optical space, 42% has been a difficult number to reach and to sustain for any period of time.

縱觀整個光學領域，42% 在任何時期都是一個難以達到和維持的數字。

Obviously, you don't give quantitative guidance past this quarter.

顯然，您在本季度之後不會提供定量指導。

But how would you have us think about gross margins going forward in the very high-volume markets like 100 gig, where you have some very large customers who can be very aggressive on pricing?

但是，您如何讓我們考慮在 100 場這樣的大容量市場中未來的毛利率，在這些市場中，您有一些非常大的客戶，他們在定價上可能非常激進？

Obviously, you've got a good cost structure, but is 42% or even in that neighborhood kind of sustainable?

顯然，你有一個良好的成本結構，但 42% 甚至在那個附近是否可持續？

Or how should we think about that going forward?

或者我們應該如何思考未來的發展？

So as you pointed out, the name of the game is cost, right?

正如您所指出的，遊戲的名稱是成本，對吧？

We have spent a tremendous amount of time and effort.

我們花費了大量的時間和精力。

I mean, it's worth pointing out, as we did in our prepared remarks, that this is the 20th year of business for AOI.

我的意思是，值得指出的是，正如我們在準備好的發言中所做的那樣，今年是 AOI 開展業務的第 20 個年頭。

We've been innovating and learning how and developing new manufacturing, advanced manufacturing techniques for these products for 20 years now.

20 年來，我們一直在創新、學習如何開發這些產品的新製造、先進製造技術。

We have an excellent business model, this vertically integrated business model with a high degree of automation and a design that has been specifically optimized to be low cost over multiple generations of products that has resulted more recently, over the last 5 years, in us -- in our ability to grow our datacenter revenue from practically nothing to where it is today and allowed us to be the market leader there.

我們擁有出色的商業模式，這種垂直整合的商業模式具有高度自動化和經過專門優化的設計，可在多代產品中實現低成本，最近在過去 5 年中，我們取得了 – - 我們有能力將數據中心收入從幾乎為零增加到今天的水平，並使我們成為那裡的市場領導者。

So what's gotten us here is our ability to continually improve our manufacturing processes and improve our cost structure and, therefore, keep increasing gross margins even in the face of what's already been very stiff competition.

因此，我們之所以能走到這一步，是因為我們有能力不斷改進製造工藝和改善成本結構，從而即使面對已經非常激烈的競爭，也能不斷提高毛利率。

I mean at no point in this datacenter business has there been a lack of competition.

我的意思是，在這個數據中心業務中，從來沒有缺乏競爭。

And we've been able to grow, as you pointed out, our gross margins throughout that time.

正如您所指出的，我們的毛利率在這段時間內一直在增長。

So we're happy to stack our manufacturing processes and our capabilities up against anybody in the industry even when it comes to newer technologies that we're aware of.

因此，我們很高興將我們的製造工藝和能力與業內任何人相媲美，即使涉及到我們所知的新技術。

And Richard, this is Thompson.

理查德，這是湯普森。

I want to emphasize in the 100G (inaudible), this is much tougher to design and manufacture (inaudible) than PSM4.

我想強調的是，在 100G（聽不清）中，它的設計和製造（聽不清）比 PSM4 困難得多。

So there are much less competitors.

所以競爭者少了很多。

And for us, AOI has much stronger cost advantage (inaudible).

對於我們來說，AOI 具有更強的成本優勢（聽不清）。

So that's why we have updated the long-term model in last quarter earnings call.

這就是我們在上季度財報電話會議上更新長期模型的原因。

And we believe that's what we can maintain even for the long-term, or even higher.

我們相信，這就是我們可以長期維持的，甚至更高的水平。

Our next question comes from Tim Savageaux from Northland Capital Markets.

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

I have a question about -- you mentioned sort of a market-leading position in web-scale transceivers.

我有一個問題——您提到了網絡規模收發器的市場領先地位。

I wonder if I could ask a couple of questions along those lines.

我想知道我是否可以按這些思路問幾個問題。

One, could you speak to your relative share, I guess, at 40 gig versus 100 gig.

第一，我想您能談談您在 40 演出與 100 演出時的相對份額嗎？

And I realize you focus on the kind of web-scale datacom transceiver market directly.

我意識到您直接關注網絡規模的數據通信收發器市場。

There does seem a pretty -- be a pretty significant emerging market for QSFP-28 as part of kind of the network equipment OEM landscape.

作為網絡設備 OEM 領域的一部分，QSFP-28 似乎確實是一個非常重要的新興市場。

I wonder if you could speak to that opportunity, if you're addressing it.

我想知道您是否可以談談這個機會（如果您正在解決這個問題）。

If not, why not?

如果沒有，為什麼不呢？

So sort of a couple questions on 40 versus 100 relative share and also maybe even bisecting that into web scale and OEM, if you will.

那麼，有幾個關於 40 與 100 相對份額的問題，如果你願意的話，甚至可能將其分為網絡規模和 OEM。

So our plan is to grow our market share going from 40 gig to 100 gig.

因此，我們的計劃是將我們的市場份額從 40 gig 增加到 100 gig。

We've been the majority supplier to most of our large datacenter customers for 40-gig products, and we think we can maintain that majority or even grow our market share within those products.

我們一直是大多數大型數據中心客戶 40 千兆位產品的主要供應商，我們認為我們可以保持這種多數地位，甚至增加我們在這些產品中的市場份額。

As Thompson mentioned, CWDM products in particular are very, very difficult to make.

正如 Thompson 所提到的，CWDM 產品的製造尤其非常困難。

AOI has particular prowess in the manufacture of those products, and that's what customers are increasingly needing as they grow their datacenters.

AOI 在這些產品的製造方面擁有特殊的實力，而這正是客戶在擴大數據中心時日益需要的產品。

So we think there's every opportunity to grow our market share as we move into greater and greater quantities of 100 gig.

因此，我們認為，隨著我們的 100 場演出數量越來越多，我們有一切機會擴大我們的市場份額。

As far as your other question, which concerned the ability to attract OEM customers, 1 of the 3 customers that we announced in this earnings call is an OEM customer.

至於你的另一個問題，即涉及吸引 OEM 客戶的能力，我們在本次財報電話會議中宣布的 3 個客戶中有 1 個是 OEM 客戶。

So we're definitely making inroads there.

所以我們肯定會在這方面取得進展。

Now as we cautioned, those OEM customers generally are smaller and certainly compared to the hyperscale, they just don't have the size and quantity in general to be of that scale.

現在，正如我們警告的那樣，這些 OEM 客戶通常規模較小，當然與超大規模相比，他們只是總體上沒有達到這種規模的規模和數量。

But I think it's a testament to our products that they work and play very well in the OEM realm as evidenced by 1 of those 3 new customers that we announced.

但我認為這證明了我們的產品在 OEM 領域的工作和性能都非常好，我們宣布的 3 個新客戶中的 1 個就證明了這一點。

And just to come back to that, understanding you're looking to grow your share.

回到這一點，了解您希望增加自己的份額。

Do you feel like you're the market share leader in the 100-gig web-scale transceivers today?

您是否覺得自己是當今 100 吉網絡級收發器的市場份額領先者？

Yes.

是的。

For the long-reach, right?

為了長距離，對嗎？

I'm talking about PSM and CWDM-type products, QSFP-28.

我說的是PSM和CWDM類型的產品，QSFP-28。

Okay.

好的。

And then one sort of quick follow-up on the kind of some of the laser math before.

然後是對之前一些激光數學的快速跟進。

And if I'm doing this wrong, please let me know.

如果我做錯了，請告訴我。

But I guess it's 400,000 lasers a month, that's 1.2 million.

但我估計每月有 40 萬個激光，也就是 120 萬個。

4 per transceiver, that's 300,000 units a month.

每個收發器 4 個，即每月 300,000 個。

Based on -- I mean, a quarter.

基於——我的意思是，四分之一。

Based on your revenue number, that puts your ASP kind of solidly below $300.

根據您的收入數據，您的 ASP 遠低於 300 美元。

Am I doing that math right?

我做的數學正確嗎？

And I imagine there's a pretty wide difference between 40 and 100, but I wonder if you can comment on that overall range and what sort of -- what's the sort of direction that you're seeing in terms of pricing in both 40 and 100G?

我想 40 和 100 之間存在相當大的差異，但我想知道您是否可以評論一下整個範圍以及您在 40 和 100G 的定價方面看到的方向是什麼？

So I mean, roughly speaking, the math that you're doing is correct.

所以我的意思是，粗略地說，你所做的數學是正確的。

There's obviously some part of our business that's -- for example 10 gig and there's cable TV and others.

顯然我們業務的某些部分是——例如 10 場演出，還有有線電視和其他業務。

So not all of the business directly goes (inaudible).

因此，並非所有業務都直接進行（聽不清）。

Just taking the datacenter revenue on that.

僅考慮數據中心收入。

For the datacenter products, yes, your math is correct.

對於數據中心產品，是的，您的數學是正確的。

As far as the other question, which concerned the ASPs, again, your math is correct.

至於另一個涉及 ASP 的問題，您的數學是正確的。

That is an average of a large pool of different products.

這是大量不同產品的平均值。

So clearly, there's products that are well above that in terms of gross margin and others that are below that -- or average price rather.

很明顯，有些產品的毛利率遠高於該水平，而另一些產品的毛利率則低於該水平，或者說平均價格。

In terms of (inaudible)

就（聽不清）而言

Right.

正確的。

So I guess the follow-up was [are you] seeing any changes there.

所以我想後續行動是[你]看到那裡有什麼變化嗎？

Yes, I mean, the price is not getting higher.

是的，我的意思是，價格並沒有上漲。

It's certainly going down.

它肯定會下降。

I think there's been quite a bit of price pressure already in 100 gig.

我認為 100 演出已經面臨相當大的價格壓力。

And I would anticipate that there'll be further price reductions.

我預計價格將會進一步下降。

The key for us is to maintain or grow our margin during that process.

對我們來說，關鍵是在此過程中保持或增加我們的利潤。

And I think we've been able to demonstrate our ability to do that.

我認為我們已經能夠證明我們有能力做到這一點。

40 gig has been relatively stable.

40演出一直比較穩定。

There's -- occasionally, there's some incremental price reductions there, but it's been relatively stable.

偶爾會有一些增量降價，但相對穩定。

And our next question is a follow-up from Paul Silverstein from Cowen.

我們的下一個問題是 Cowen 的 Paul Silverstein 的後續問題。

I might have missed the answer to the previous question, but Stefan, what's the price differential right now between 40 gig and 100 gig?

我可能錯過了上一個問題的答案，但是 Stefan，現在 40 gig 和 100 gig 之間的價格差異是多少？

It depends on the type of product.

這取決於產品的類型。

It's not an easy answer to give.

這不是一個容易給出的答案。

And I don't like to get too detailed on pricing.

而且我不喜歡對定價了解得太詳細。

So the differential hasn't changed dramatically in the last quarter, let's put it that way.

因此，上個季度的差異並沒有發生顯著變化，我們可以這麼說。

I assume, though, that there's a relatively meaningful differential.

不過，我認為存在相對有意義的差異。

I guess where I'm going with this is as 100 gig continues to increase as a percentage of the volume, even (inaudible) ASP declines at 100 gig and relatively stable 40 gig, I assume all other things being equal, that in itself is going to contribute to growth.

我想我的想法是，隨著 100 gig 佔銷量的百分比持續增加，甚至（聽不清）ASP 在 100 gig 和相對穩定的 40 gig 時下降，我假設所有其他條件都相同，這本身就是將為增長做出貢獻。

Correct.

正確的。

And I guess the question would be is it meaningful.

我想問題是這是否有意義。

And then the related question would be in terms of margins, 100 gig versus 40 gig.

然後相關的問題是利潤率，100 G 與 40 G。

And once again, if you already said it, my apologies.

再次，如果你已經說過了，我很抱歉。

But I trust you don't want to give the numbers.

但我相信你不想提供這些數字。

But is the differential from a margin perspective meaningful?

但從利潤角度來看，這種差異有意義嗎？

Yes.

是的。

In favor of 100 gig?

支持 100 場演出嗎？

Correct.

正確的。

100 gig is higher margin, meaningfully.

100 演出的利潤率更高，這是有意義的。

All right.

好的。

So all things being equal, as the 100 gig grows as a percentage of revenue, it's good for revenue, it's good for margins?

那麼，在所有條件相同的情況下，隨著 100 份演出佔收入的百分比增長，這對收入有好處，對利潤率也有好處嗎？

Generally, yes.

一般來說，是的。

And ladies and gentlemen, at this time, I'm showing no additional questions.

女士們先生們，此時我沒有提出任何其他問題。

I'd like to turn the conference back over to management for any closing remarks.

我想將會議轉回管理層進行閉幕致辭。

Okay, and thank you for joining us today.

好的，感謝您今天加入我們。

As always, we thank our investors, customers and employees for your continued support, and we look forward to seeing you at one of our upcoming conferences.

一如既往，我們感謝投資者、客戶和員工的持續支持，並期待在我們即將召開的會議之一上見到您。

Ladies and gentlemen, that does conclude today's conference call.

女士們先生們，今天的電話會議到此結束。

We do thank you for attending.

我們非常感謝您的出席。

You may now disconnect your lines.

您現在可以斷開線路。