祥茂光電 (AAOI) 2017 Q4 法說會逐字稿

Good afternoon.

午安.

I will be your conference operator.

我將擔任您的會議操作員。

At this time, I would like to welcome everyone to Applied Optoelectronics' Fourth Quarter and Year 2017 Earnings Conference Call.

此時此刻，我歡迎大家參加應用光電2017年第四季和全年財報電話會議。

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

（操作員說明）請注意，此通話正在錄音。

I will now turn the call over to Maria Riley, Investor Relations for AOI.

我現在將把電話轉給 AOI 投資者關係部的 Maria Riley。

Ms. Riley, you may begin.

萊利女士，您可以開始了。

Thank you.

謝謝。

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

我是應用光電公司投資者關係部門的 Maria Riley，我很高興歡迎您參加 AOI 2017 年第四季和全年財務業績電話會議。

After the market closed today, AOI issued a press release announcing its fourth quarter and year 2017 financial results and provided its outlook for the first quarter of 2018.

今天收盤後，AOI 發布新聞稿，公佈了 2017 年第四季和全年財務業績，並提供了 2018 年第一季的展望。

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

該版本還可在該公司網站 ao-inc.com 上取得。

This call is being recorded and webcast live.

此次通話正在錄音並進行網路直播。

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

錄音的連結可以在 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 創辦人、董事長兼執行長 Thompson Lin 博士；以及 AOI 財務長兼首席策略長 Stefan Murry 博士。

Thompson will give an overview of AOI's Q4 results, and Stefan will provide financial details and the outlook for the first quarter of 2018.

Thompson 將概述 AOI 第四季的業績，Stefan 將提供財務細節和 2018 年第一季的前景。

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

在我們準備好的發言之後將舉行問答環節。

Before we begin, I would like to remind you to review AOI's Safe Harbor statement.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。

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

在今天的電話會議上，管理階層將發表前瞻性聲明。

These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements.

這些前瞻性陳述涉及風險和不確定性以及假設和當前預期，可能導致公司的實際結果與此類前瞻性陳述中的預期有重大差異。

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

您可以透過「可能」、「將」、「應該」、「期望」、「計劃」、「預計」、「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，我們不承擔在本次財報電話會議之後以任何理由更新前瞻性陳述以使這些陳述符合實際結果或公司預期變化的義務。

More information about our 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 exception of revenue, all financial numbers discussed today are on a non-GAAP basis, unless specifically noted otherwise.

此外，除非另有特別說明，除收入外，今天討論的所有財務數據均基於非公認會計原則。

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

非公認會計原則財務指標不應被孤立考慮，也不能取代根據公認會計原則編制的結果。

A reconciliation between our GAAP and non-GAAP measures as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website.

我們的 GAAP 和非 GAAP 指標之間的調整以及我們為何提出非 GAAP 財務指標的討論都包含在我們網站上的收益新聞稿中。

Before moving to the financial results, I would like to announce that AOI management will attend the Raymond James Institutional Investors Conference in Orlando on March 5. We will also host an investor session at OFC on March 13 at the San Diego Convention Center.

在公佈財務業績之前，我想宣布 AOI 管理層將於 3 月 5 日出席在奧蘭多舉行的 Raymond James 機構投資者會議。

This discussion will be webcast live, and a link to the webcast will be available on the Investor Relations page of the AOI website.

本次討論將進行網路直播，並且在 AOI 網站的投資者關係頁面上將提供網路直播的連結。

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。

Lastly, I'd like to note the date of our first quarter of 2018 earnings conference call is currently scheduled for Tuesday, May 8, 2018.

最後，我想指出我們 2018 年第一季財報電話會議的日期目前定於 2018 年 5 月 8 日星期二。

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

現在我想把電話轉給應用光電創辦人、董事長兼執行長林湯普博士。

Thompson?

湯普森？

Thank you, Maria.

謝謝你，瑪麗亞。

Thank you, everyone, for joining us today to discuss our fourth quarter and year 2017 results.

感謝大家今天加入我們討論 2017 年第四季和全年業績。

Our revenue in the quarter came in at $79.9 million, which was slightly below our expectations due to lower demand from our datacenter customers as they continue to evolve their network architectures.

我們本季的營收為 7,990 萬美元，略低於我們的預期，因為我們的資料中心客戶隨著網路架構的不斷發展而需求下降。

Even though our revenue came in slightly below expectations, we maintained our strong gross margins, and increased our non-GAAP profit 16% year-over-year, even in a price sensitive datacenter environment.

儘管我們的收入略低於預期，但我們仍保持了強勁的毛利率，即使在價格敏感的資料中心環境中，我們的非 GAAP 利潤也比去年同期成長了 16%。

Data center revenue was $62 million, which was slightly lower than Q3.

資料中心營收為 6,200 萬美元，略低於第三季。

In the quarter, we were encouraged to see a rebound in revenue from one of our large datacenter customers.

在本季度，我們很高興地看到我們的一個大型資料中心客戶的收入出現反彈。

Based on conversations with this customer and our other top datacenter customers, we continue to expect inventory conditions to normalize by the end of the second quarter this year.

根據與該客戶和我們其他頂級資料中心客戶的對話，我們仍然預計庫存狀況到今年第二季末將恢復正常。

Notably, we also finalized the largest purchase commitment in AOI's history during the quarter, which we believe demonstrates AOI's leading position as an optics supplier for large datacenter projects.

值得注意的是，我們還在本季敲定了 AOI 史上最大的採購承諾，我們相信這證明了 AOI 作為大型資料中心專案光學供應商的領先地位。

We have made good progress in diversifying our customer base.

我們在客戶群多元化方面取得了良好進展。

For the year, we had three customers who each represented more than 10% of our total revenue, compared with two customers in 2016.

今年，我們有 3 位客戶，各自占我們總收入的 10% 以上，而 2016 年有兩位客戶。

Since our last update, we have had four design wins, including three for 100G products, all with existing hyperscale customer.

自上次更新以來，我們已獲得四項設計勝利，其中三項針對 100G 產品，全部來自現有的超大規模客戶。

We also remain focused on building incredible and innovative products, and I'm pleased to announce we were the first to develop an uncooled 100G per lambda PAM4 directly modulated laser, which is key to next-generation 400G transceivers for data center applications.

我們也繼續專注於打造令人難以置信的創新產品，我很高興地宣布，我們是第一個開發出非冷卻100G per lambda PAM4 直接調製雷射器的公司，這是資料中心應用的下一代400G 收發器的關鍵。

Just today, we announced a 100G EML laser, which will allow longer transmission distance at 100G and 400G, and will cover virtually all the distances needed by datacenter operators and many telecom applications as well.

就在今天，我們發布了一款 100G EML 雷射器，它將在 100G 和 400G 下實現更長的傳輸距離，並且幾乎涵蓋資料中心營運商和許多電信應用所需的所有距離。

Through continued innovation, we have reduced the average cost of our long-wavelength 100G transceiver products by 36% in the first 4 quarters.

透過持續創新，前四個季度我們的長波100G光模組產品平均成本降低了36%。

And we have a solid roadmap for continued cost reduction in 2018.

我們制定了 2018 年持續降低成本的可靠路線圖。

Demand for our CATV products increased 7% year-over-year to $14.3 million, and we are very encouraged by the customer activity we see in the market, especially our Remote-PHY product.

對我們 CATV 產品的需求年增 7%，達到 1,430 萬美元，我們對市場上的客戶活動（尤其是我們的 Remote-PHY 產品）感到非常鼓舞。

2017 was our best year ever for CATV sales, as North American MSOs initiated network upgrade projects.

2017 年是我們 CATV 銷售有史以來最好的一年，因為北美 MSO 啟動了網路升級專案。

In 2018, we expect additional Remote-PHY and fiber-deep sales that will allow us to continue to see growth in this segment.

2018 年，我們預計 Remote-PHY 和光纖深度銷售將增加，這將使我們能夠繼續看到該領域的成長。

In reviewing our results for the year, AOI delivered record revenue of $382 million, an increase of 47% year-over-year, and generated a strong gross margin of 43.7%, which led to non-GAAP earnings growth of 278% over 2016.

回顧我們今年的業績，AOI 實現了創紀錄的 3.82 億美元收入，年增 47%，並產生了 43.7% 的強勁毛利率，這使得非 GAAP 收益比 2016 年增長了 278% 。

The first quarter is typically a seasonally low quarter for AOI.

第一季通常是 AOI 的季節性低季。

Additionally, we still see some inventory headwinds with one of our data center customers.

此外，我們的一位資料中心客戶仍面臨一些庫存阻力。

We believe we have a very strong position in both the data center optics and CATV market, and based on customer forecasts, we believe the second half of 2018 will be stronger than the first half.

我們相信我們在資料中心光學和有線電視市場都擁有非常強大的地位，根據客戶預測，我們相信 2018 年下半年將比上半年更強。

The technologies we've developed and plan to bring to market this year position us well to continue to build on our strong foundation as a leader in the advanced optical technology and expand our footprint within the market.

我們開發並計劃今年推向市場的技術使我們能夠繼續鞏固我們作為先進光學技術領導者的堅實基礎，並擴大我們在市場中的足跡。

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

接下來，我將把電話轉給 Stefan，以審查我們第四季業績的詳細資訊和下一季的前景。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

Total revenue for the fourth quarter was $79.9 million compared with $84.9 million in Q4 last year.

第四季的總收入為 7,990 萬美元，而去年第四季的總收入為 8,490 萬美元。

As Thompson mentioned, our revenue came in slightly below our expectations due to lower demand from our data center customers, as they continue to evolve their network architectures.

正如湯普森所提到的，我們的收入略低於我們的預期，因為我們的資料中心客戶隨著他們不斷發展其網路架構而需求下降。

Our data center revenue was $62 million compared with $68.1 million in Q4 of last year.

我們的資料中心收入為 6,200 萬美元，而去年第四季為 6,810 萬美元。

In the quarter, 35% of our data center revenue was derived from our 100G data center products and 58% was from our 40G products.

本季度，我們資料中心營收的 35% 來自我們的 100G 資料中心產品，58% 來自我們的 40G 產品。

As Thompson mentioned, in building upon our technology leadership and advanced laser design, we recently announced the development of an uncooled 100G per lambda TAM4 directly modulated laser that is key to next-generation 400G products for the data center.

正如 Thompson 所提到的，基於我們的技術領先地位和先進的雷射器設計，我們最近宣布開發出非冷卻 100G per lambda TAM4 直接調製雷射器，這是資料中心下一代 400G 產品的關鍵。

We believe that this solution is the best technical approach to extend the cost leadership AOI has engineered at 40G and 100G to 400G and beyond.

我們相信，該解決方案是將 AOI 在 40G 和 100G 上設計的成本領先優勢擴展到 400G 及以上的最佳技術方法。

As previously discussed, transceivers built on DML devices are typically less expensive to produce than transceivers that use EML lasers or external modulation.

如前所述，基於 DML 元件建構的收發器的生產成本通常低於使用 EML 雷射或外部調變的收發器。

And we believe that having strong in-house capabilities for producing both DML and EML devices will allow us to maintain our cost advantage at 400G.

我們相信，擁有強大的 DML 和 EML 設備生產能力將使我們能夠保持 400G 的成本優勢。

We remain focused on building incredible and innovative products and look forward to showcasing some of these technologies at the upcoming Optical Fiber Communications Conference next month.

我們仍然專注於打造令人難以置信的創新產品，並期待在下個月即將舉行的光纖通訊會議上展示其中一些技術。

Turning to our Cable Television market.

轉向我們的有線電視市場。

Revenue from CATV products increased 7% year-over-year to reach $14.3 million compared with $13.4 million in Q4 of last year.

CATV 產品營收年增 7%，達到 1,430 萬美元，去年第四季為 1,340 萬美元。

Demand for our CATV products was in line with expectations and driven primarily by ongoing upgrade projects being undertaken by North American Cable TV MSOs as they began the process of overhauling their networks to enable delivery of 1 gigabit per second or higher data speeds in the future.

對我們 CATV 產品的需求符合預期，主要是由北美有線電視 MSO 正在進行的升級項目推動的，因為他們開始徹底改造其網絡，以在未來提供每秒 1 GB 或更高的數據速度。

We believe that our Remote-PHY products, along with our other fiber-deep nodes and head-end transmitters will play a significant part in these new deployments and we continue to expect volume shipments of Remote-PHY to start later this year.

我們相信，我們的 Remote-PHY 產品以及我們的其他光纖深度節點和頭端發射器將在這些新部署中發揮重要作用，我們繼續預計 Remote-PHY 將在今年稍後開始批量發貨。

Our telecom products delivered revenue of $3.2 million compared with $2.9 million in Q4 of last year.

我們的電信產品實現了 320 萬美元的收入，而去年第四季為 290 萬美元。

For the quarter, 78% of our revenue was from data center products, 18% from CATV products with the remaining 4% from FTTH, telecom and other.

本季度，我們 78% 的收入來自資料中心產品，18% 來自 CATV 產品，其餘 4% 來自 FTTH、電信和其他產品。

In the fourth quarter, we had 3 10% or greater customers in the data center business that contributed 33%, 21% and 19% of total revenue, respectively.

第四季度，我們的資料中心業務有3個10%或以上的客戶，分別貢獻了總營收的33%、21%和19%。

For the year 2017, these same 3 customers represented 29%, 35% and 14%, respectively, of total revenue.

2017 年，這 3 位客戶分別佔總收入的 29%、35% 和 14%。

Moving down the income statement.

將損益表向下移動。

In the quarter, we maintained a strong gross margin of 41%, which was within the 41% to 45% range that we view as sustainable and represents an increase of 300 basis points compared with the 38% reported in Q4 of last year.

本季度，我們維持了 41% 的強勁毛利率，處於我們認為可持續的 41% 至 45% 範圍內，與去年第四季的 38% 相比增加了 300 個基點。

I'm very pleased with our ability to continue to generate strong gross margins even in a price-sensitive market.

我對我們即使在價格敏感的市場中也能繼續產生強勁毛利率的能力感到非常滿意。

As Thompson mentioned, our commitment to ongoing cost reduction bore fruit in 2017.

正如 Thompson 所提到的，我們對持續降低成本的承諾在 2017 年取得了成果。

Over the last 4 quarters, we continued to improve our manufacturing efficiencies and reduced the cost of our long-wavelength 100G transceiver products, an average of 36% compared to the same period in 2016.

在過去的4個季度中，我們持續提高了長波100G光模組產品的製造效率並降低了成本，與2016年同期相比平均降低了36%。

Total operating expenses in the quarter were $18.9 million or 23.7% of revenue compared with $18.9 million or 21.2% of revenue in the prior quarter.

本季總營運費用為 1,890 萬美元，佔營收的 23.7%，而上一季為 1,890 萬美元，佔營收的 21.2%。

Our total OpEx was nearly flat sequentially, we experienced increased spending on R&D, which was offset by lower sales and marketing and G&A expenses.

我們的總營運支出與上一季幾乎持平，我們的研發支出增加，但銷售和行銷以及一般管理費用的下降抵消了增加。

Looking forward, we expect to see R&D at an elevated level for the next several quarters, as we are investing in developing some new production technologies that will enable continued cost reduction on our core transceiver products as well as continuing to invest in 200G, 400G and Remote-PHY product development.

展望未來，我們預計未來幾季的研發水準將會提高，因為我們正在投資開發一些新的生產技術，這將有助於持續降低我們核心收發器產品的成本，並繼續投資於 200G、400G 和遠端PHY 產品開發。

Operating income in Q4 was $13.8 million compared with operating income of $17 million in Q4 of 2016.

第四季營業收入為 1,380 萬美元，而 2016 年第四季營業收入為 1,700 萬美元。

Our operating margin in the quarter was 17.3% compared with the 20% reported in Q4 of 2016.

我們本季的營業利益率為 17.3%，而 2016 年第四季的營業利益率為 20%。

Non-GAAP net income after-tax for the fourth quarter was $17.9 million or $0.89 per diluted share, up 16% from the $15.5 million or $0.84 per diluted share in Q4 of 2016.

第四季非 GAAP 稅後淨利為 1,790 萬美元，即稀釋後每股 0.89 美元，較 2016 年第四季的 1,550 萬美元，即稀釋後每股 0.84 美元成長 16%。

GAAP net income for Q4 was $5.7 million or $0.28 per diluted share compared with GAAP net income of $14.2 million or $0.77 per diluted share in Q4 of last year.

第四季 GAAP 淨利潤為 570 萬美元，或稀釋每股 0.28 美元，而去年第四季 GAAP 淨利潤為 1,420 萬美元，或稀釋每股 0.77 美元。

The Q4 weighted average fully diluted share count was approximately 20.1 million shares.

第四季加權平均完全稀釋股數約 2,010 萬股。

The reduction in GAAP net income this quarter was primarily driven by effects of the Tax Reform and Jobs Act, which was enacted in the U.S. in December 2017.

本季度 GAAP 淨利潤的減少主要是受到美國 2017 年 12 月頒布的稅收改革和就業法案的影響。

AOI was significantly affected by several provisions in this new tax law.

AOI 受到新稅法多項規定的顯著影響。

First, the new law introduced a onetime gain repatriation transition tax, which is a tax on previously untaxed accumulated and current earnings and profits of our foreign subsidiaries.

首先，新法引入了一次性收益匯回過渡稅，這是對我們外國子公司以前未徵稅的累積和當期收益和利潤徵稅。

Our provisional estimate is that this repatriation tax will result in a onetime income tax expense of approximately $9 million, which we recorded in the quarter in accordance with GAAP.

我們的臨時估計是，這筆匯回稅將導致約 900 萬美元的一次性所得稅費用，我們根據 GAAP 記錄在本季度。

We were able to partially offset this transition tax with foreign tax credits of approximately $4 million, making the net additional U.S. tax due on foreign earnings approximately $5.1 million.

我們能夠用約 400 萬美元的外國稅收抵免部分抵消這種過渡稅，使外國收入應繳納的美國淨額外稅款約為 510 萬美元。

We do not expect this transition tax to result in additional cash tax payable, however.

然而，我們預計這種過渡稅不會導致額外的應付現金稅。

A second significant effect of the new tax law was the need to reduce the value of our deferred tax assets, which mostly consists of prior periods accumulated net operating losses.

新稅法的第二個重大影響是需要減少我們的遞延稅資產的價值，其中大部分由前期累積淨營業虧損組成。

These tax assets were reduced in value due to the new lower statutory tax rate of 21% in the U.S., which resulted in a onetime charge of approximately $3 million in Q4.

由於美國新的較低法定稅率 21%，這些稅收資產的價值有所減少，導致第四季度一次性費用約為 300 萬美元。

Both of these effects as well as other lesser impacts of the new tax law are expected to be nonrecurring and therefore, we have adjusted our non-GAAP measures to eliminate the effect of these onetime adjustments.

新稅法的這兩種影響以及其他較小的影響預計不會經常出現，因此，我們調整了非公認會計準則措施，以消除這些一次性調整的影響。

During the quarter, we also recognized approximately $4.6 million in R&D tax credits and approximately $1.5 million in excess tax benefits from employee options that were exercised during the quarter.

在本季度，我們還確認了約 460 萬美元的研發稅收抵免，以及來自本季度行使的員工選擇權的約 150 萬美元的超額稅收優惠。

With the new tax law in place, I would like to take a few moments to provide some updates on AOI's income tax expense going forward.

隨著新稅法的實施，我想花一些時間提供有關 AOI 未來所得稅費用的一些最新資訊。

I should emphasize that the changes included in the Tax Act are broad and complex, and there is significant work yet to be done, as we continue to refine our estimates.

我應該強調，稅法中包含的變化廣泛而複雜，隨著我們繼續完善我們的估計，還有大量工作要做。

As such, new guidance on the tax law continues to be issue and I urge you to consult the tax section of our 10-K for more information.

因此，關於稅法的新指南仍在發布，我強烈建議您查閱我們 10-K 的稅務部分以獲取更多資訊。

AOI operates in 3 main taxable jurisdictions: the United States, Taiwan and China.

AOI 在 3 個主要納稅司法管轄區開展業務：美國、台灣和中國。

Based upon our income tax in each of these jurisdictions, we estimate our 2018 overall annual effective tax rate on a GAAP basis at approximately 25.7%, excluding the effects of various discrete items we may have.

根據我們在每個司法管轄區的所得稅，我們估計 2018 年按 GAAP 計算的總年度有效稅率約為 25.7%，不包括我們可能產生的各種離散項目的影響。

In any given tax periods, there are various discrete items that cannot be reasonably estimated and can result in a tax rate in that period that may vary significantly from the estimated tax rate previously mentioned.

在任何給定的納稅期間，存在無法合理估計的各種離散項目，並且可能導致該期間的稅率可能與前面提到的估計稅率有很大差異。

For AOI, the most significant of these items involve R&D tax credits and any tax expense or benefit that may arise from share-based compensation.

對於 AOI 來說，其中最重要的項目涉及研發稅收抵免以及股權激勵可能產生的任何稅收費用或收益。

Under U.S. GAAP, the income tax effects of share-based compensation are now reported in income tax expense or benefit from continuing operations.

根據美國公認會計原則，股權激勵的所得稅影響現在在所得稅費用或持續營業收益中報告。

As we cannot estimate when an employee might exercise options, or what the stock price might be at that time, we are unable to include estimates of these items in our effective tax rate calculation.

由於我們無法估計員工何時可能行使選擇權，或當時的股價可能是多少，因此我們無法將這些項目的估計納入我們的有效稅率計算中。

As a result, our tax expense in any quarter may vary from our estimates.

因此，我們任何季度的稅務支出都可能與我們的估計有所不同。

As most of our employee options were granted in periods, where our stock prices were lower than it has been recently, the difference between the booked expense, which is recognized at the time of print and the tax expense, which is recognized at the time of issuance or exercise has generally resulted in a tax benefit.

由於我們的大多數員工選擇權是在我們的股價低於最近的時期授予的，因此在列印時確認的登記費用與在列印時確認的稅務費用之間存在差異發行或行使通常會帶來稅收優惠。

Turning now to the balance sheet.

現在轉向資產負債表。

We ended Q4 with $84 million in total cash, cash equivalents, short-term investments and restricted cash compared with $72 million at the end of the previous quarter.

在第四季末，我們的現金、現金等價物、短期投資和限制性現金總額為 8,400 萬美元，而上一季末為 7,200 萬美元。

As of December 31, we had $75.8 million in inventory, an increase of $1.2 million from Q3.

截至 12 月 31 日，我們的庫存為 7,580 萬美元，比第三季增加了 120 萬美元。

Our cash generated from operations totaled $84.3 million for the year.

本年度我們的營運現金總額為 8,430 萬美元。

We made a total of $20.4 million in capital investments in the quarter, including $11.1 million in production equipment and machinery and $8.7 million on construction and building improvements, most of which was spent purchasing land-use rights for our new factory in China.

本季我們總共進行了2,040 萬美元的資本投資，其中包括1,110 萬美元的生產設備和機械投資以及870 萬美元的建築和建築改良投資，其中大部分用於為我們在中國的新工廠購買土地使用權。

This brings our total capital investments for the year to $67 million.

這使得我們今年的總資本投資達到 6,700 萬美元。

Looking ahead, we expect capital expenditures in 2018 to increase to approximately $109 million with the construction of our new factory in China, accounting for most of the increase over 2017 CapEx levels.

展望未來，隨著我們在中國新工廠的建設，我們預計 2018 年的資本支出將增加至約 1.09 億美元，佔 2017 年資本支出水準成長的大部分。

Construction on this new factory should commence in Q2 of this year and we expect it to be completed in 2020.

該新工廠將於今年第二季開始建設，預計將於 2020 年完工。

The location of the new factory is immediately adjacent to our existing facility in Ningbo.

新工廠的位置緊鄰我們在寧波的現有工廠。

The purpose for the new facility is to increase our production capacity by adding approximately 322,000 square feet of production space as well as additional housing for workers that will be needed to staff the new factory.

新工廠的目的是透過增加約 322,000 平方英尺的生產空間以及為新工廠所需的工人提供額外的住房來提高我們的生產能力。

This new facility will add to our existing footprint in Ningbo, which consists of approximately 459,000 square feet.

這個新工廠將擴大我們在寧波現有的佔地面積，佔地約 459,000 平方英尺。

Moving now to our Q1 outlook.

現在轉向我們的第一季展望。

We expect Q1 revenue to be between $67 million and $71 million.

我們預計第一季營收將在 6,700 萬美元至 7,100 萬美元之間。

As a reminder, we have fewer production days in Q1 as a result of the Chinese New Year holiday, which results in lower production capacity in Q1 compared to Q4.

提醒一下，由於農曆新年假期，我們第一季的生產天數較少，這導致第一季的產能較第四季下降。

Demand from our transceiver customers in Q1 is expected to exceed our production capacity this quarter due to the effects of the New Year holiday in China.

由於中國新年假期的影響，預計第一季我們的收發器客戶的需求將超過我們的產能。

We expect Q1 non-GAAP gross margin to be in the range of 40.5% to 41.5%.

我們預計第一季非 GAAP 毛利率將在 40.5% 至 41.5% 之間。

Net income is expected to be in the range of $5.6 million to $6.8 million and non-GAAP EPS between $0.28 per share and $0.34 per share using a weighted average fully diluted share count of approximately 20.2 million shares.

根據加權平均完全稀釋股數約為 2,020 萬股，預計淨利潤將在 560 萬至 680 萬美元之間，非公認會計準則每股收益將在每股 0.28 美元至 0.34 美元之間。

We expect our Q1 effective tax rate on our non-GAAP net income to be between 6% and 10%.

我們預計第一季非 GAAP 淨利潤的有效稅率在 6% 至 10% 之間。

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

這樣，我會將其轉回給操作員進行問答環節。

Operator?

操作員？

(Operator Instructions) Our first question comes from Simon Leopold of Raymond James.

（操作員說明）我們的第一個問題來自 Raymond James 的 Simon Leopold。

Just a quick clarification on the supply agreement you announced with Facebook today.

簡單澄清一下您今天與 Facebook 宣布的供應協議。

The agreement references a date in December.

該協議提到的日期是十二月。

Just want to get a clear understanding of sort of the timing.

只是想清楚了解時間安排。

And it's not really clear to us what's in there.

我們並不清楚裡面有什麼。

I know, a lot of it has to be redacted, I get that.

我知道，很多內容都需要編輯，我懂。

Is this -- is it 100 gig?

這是——100 演出嗎？

Is there a mix in there?

裡面有混合嗎？

Any insight you can give us in terms of what the details are behind what Facebook is purchasing from you?

您能否向我們提供有關 Facebook 向您購買產品背後的細節的任何見解？

Well, Simon, as you can imagine, we have pretty detailed nondisclosure agreements with our customers.

好吧，西蒙，正如你可以想像的那樣，我們與客戶簽訂了非常詳細的保密協議。

So really, all we can say is what's in the agreement as redacted.

所以實際上，我們所能說的就是協議中經過編輯的內容。

What I can say is, as we noted, it represents a 3-year timeframe with a minimum commitment for the first year that represents, at a minimum $125 million for one product family.

我能說的是，正如我們所指出的，它代表了一個 3 年的時間框架，第一年的最低承諾意味著一個產品系列至少 1.25 億美元。

Not all the products, but just one product family.

並非所有產品，而只是一個產品系列。

But as far as which product that is, or any of the other details, unfortunately, due to the nondisclosure agreements, we really can't say more than that.

但不幸的是，由於保密協議，至於哪種產品，或任何其他細節，我們真的不能透露更多。

Okay, understood.

好的，明白了。

And in terms of the results this quarter, I appreciate the disclosure between 40 and 100 gig.

就本季的業績而言，我很欣賞 40 到 100 場演出的披露。

But the trends are not what we would've expected with it, looks like your 100 gig revenue was down.

但趨勢並不符合我們的預期，看起來您的 100 場演出收入有所下降。

It's down as a percent, while the 40 gig business seems to be holding up better and grew.

它下降了一個百分點，而 40 份零工業務似乎表現更好並且有所增長。

Just completely the opposite of what trend we would expect.

與我們預期的趨勢完全相反。

Could you help us understand what's going on either in the quarter and then in terms of the longer-term trend between 40 and 100?

您能否幫助我們了解本季的情況以及 40 到 100 之間的長期趨勢？

Well, as we've noted, I think, before, the long-term trend is certainly for more 100 gig and less 40 gig.

嗯，正如我們之前指出的，我認為長期趨勢肯定是增加 100 場演出，減少 40 場演出。

So 100 gig is gradually overtaking 40 gig.

因此 100 gig 正在逐漸超過 40 gig。

Now in any given quarter, as there are customers -- we have multiple different customers who are buying different things for different parts of their networks at different times.

現在，在任何特定季度，由於有客戶，我們有多個不同的客戶，他們在不同時間為其網路的不同部分購買不同的東西。

So in any given quarter, the interplay between all of those things could result in some deviations from that long-term trend.

因此，在任何特定季度，所有這些因素之間的相互作用都可能導致與長期趨勢的一些偏差。

But long term, we still expect 100 gig to certainly grow and 40 gig to gradually decline.

但從長遠來看，我們仍然預期 100G 肯定會成長，40G 會逐漸下降。

And does something explain what happened in this particular quarter to skew it so much in favor of 40 gig?

是否有什麼東西可以解釋這個特定季度發生的事情導致它如此偏向 40 場演出？

Is it customer specific?

是針對特定客戶的嗎？

Help me understand that.

幫助我理解這一點。

It's largely customer specific.

這主要是針對特定客戶的。

And for that reason, I can't really give you a whole lot of insight into it.

出於這個原因，我無法真正向您提供有關它的大量見解。

But again, the longer trend is what you would expect 100 gig growing and 40 gig declining.

但同樣，長期趨勢是您所期望的 100 個演出成長和 40 個演出下降。

And one last one, please.

最後一張，請。

Could you just comment on the dynamics you are seeing in the competitive environment.

您能否評論一下您在競爭環境中看到的動態？

We hear a lot of noise.

我們聽到很多噪音。

It's hard to decide for a fact from fiction, any commentary you can offer on how the competitive environment has evolved over the last several months?

很難區分事實與虛構，您能對過去幾個月的競爭環境如何演變發表評論嗎？

Sure.

當然。

So in terms of competition, I mean, I don't think we've seen any new entrants as far as competitors go.

因此，就競爭而言，我認為就競爭對手而言，我們還沒有看到任何新進入者。

I think the cast of competitors is similar to what we've seen.

我認為參賽者的陣容與我們所看到的相似。

There have been some recent comments by some of our competitors that they are minimizing or changing their strategy with respect to, particularly to 100 gig that should result in less pricing pressure, perhaps, in 2018 compared to what we saw in 2017, which is what -- which is consistent with what we've said before that we see 2018 -- the rate of decline of pricing in 2018 being less than what we saw in 2017.

我們的一些競爭對手最近發表了一些評論，稱他們正在最小化或改變他們的策略，特別是 100 場演出，這可能會導致 2018 年的定價壓力比我們 2017 年看到的要小，這就是— —這與我們先前所說的2018 年的情況一致－2018 年的定價下降幅度小於2017 年的下降幅度。

So I think that's sort of what we're seeing.

所以我認為這就是我們所看到的。

I think the real wild card for us is, as we've mentioned before is -- so you've seen this purchase commitment that we talked about today, and I mentioned earlier and in the 8-K that it is a minimum commitment.

我認為對我們來說真正的變數是，正如我們之前提到的，所以你已經看到了我們今天討論的購買承諾，我之前在 8-K 中提到過，這是最低承諾。

This is how we operate with some of our other customers as well, in the sense that AOI, typically gets a share oftentimes a leading share with our customers.

這也是我們與其他一些客戶合作的方式，從某種意義上說，AOI 通常會與我們的客戶分享領先的份額。

As sort of a minimum commitment, but often times, depending on what competitors can actually produce and ship in a given quarter, we may have opportunities to take additional share.

作為最低限度的承諾，但很多時候，根據競爭對手在給定季度實際生產和發貨的產品，我們可能有機會獲得額外的份額。

And so the interplay between what we can produce and what our customers can produce this year will ultimately determine the overall market share for the year.

因此，今年我們的生產能力和客戶的生產能力之間的相互作用將最終決定今年的整體市場份額。

Our next question comes from James Kisner of Loop Capital.

我們的下一個問題來自 Loop Capital 的詹姆斯·基斯納。

So I think you mentioned inventories choosing one customer having impact to your, I think.

因此，我認為您提到庫存選擇對您有影響的客戶。

Maybe you could talk about just, sort of, to quantify that to some degree.

也許你可以談談一下，在某種程度上量化這一點。

I mean, just $10 million, $30 million what's the overhang there?

我的意思是，只有 1000 萬美元、3000 萬美元，還有什麼剩餘？

Sounds like you also, kind of, expect that Q2 -- obviously, you're not going to be growing.

聽起來你也有點期待第二季——顯然，你不會成長。

But you actually say its the second half is going to be bigger than the first half.

但你實際上說下半年會比上半年更大。

I don't know if you'd help us with bandwidth here at all.

我不知道你是否願意幫我們解決頻寬問題。

I mean, could this be a growth year on a full year basis for you, just given 100 gig is ramping, and these issues are going to temporary?

我的意思是，考慮到 100 份工作正在增加，而這些問題只是暫時的，那麼今年對您來說會是全年增長的一年嗎？

Just any color on that would be helpful.

任何顏色都會有幫助。

Sure.

當然。

So as far as the inventory goes, I can't really give you a lot of insight into that.

因此，就庫存而言，我無法真正向您提供很多相關資訊。

Because it's the inventories that the customers have on hand.

因為這是客戶手邊的庫存。

We've got a pretty good idea from them about what they're forecasts in terms of purchasing look like.

我們從他們那裡得到了關於他們對採購情況的預測的很好的想法。

And then as far as growth prospects for the year, I think first of all, it's very important to emphasize that we remain very confident in our position as the leading supplier of data center optics to all of our major hyperscale data center customers.

就今年的成長前景而言，我認為首先需要強調的是，我們仍然對我們作為所有主要超大規模資料中心客戶的資料中心光學領先供應商的地位充滿信心。

I think, as you've seen in the last few press releases that we put out, we have a very strong product roadmap, really leading technology in the industry in terms of laser and receiver technology for not only 100 gig but 400 gig and beyond.

我認為，正如您在我們發布的最後幾份新聞稿中看到的那樣，我們擁有非常強大的產品路線圖，在雷射和接收器技術方面真正處於行業領先地位，不僅適用於100 GB，而且適用於400 GB 以上。

So as we talk about growth prospects this year, it's not only about our existing hyperscale customers where we continue to have a very strong position, but also about our prospects for bringing on new customers.

因此，當我們談論今年的成長前景時，不僅涉及我們繼續保持強勢地位的現有超大規模客戶，還涉及我們吸引新客戶的前景。

And we do have a number of recent design wins and a number of qualifications that are ongoing that we hope to bring in as new customer revenue later on in the year.

我們最近確實獲得了一些設計勝利，並且正在進行一些資格認證，我們希望在今年稍後將其作為新客戶收入帶來。

And so I think, what I would expect to see is, continued strong business from our 3 hyperscale customers and layering on top of that, some new customers in the data center and perhaps, other areas as well.

因此，我認為，我期望看到的是，我們的 3 個超大規模客戶將繼續保持強勁的業務，並在此之上，資料中心以及其他領域的一些新客戶。

And then it's worth mentioning too, our Cable TV segment has been a very strong grower this year, and the prospects for growth in Cable TV remain excellent.

另外值得一提的是，我們的有線電視業務今年成長非常強勁，有線電視的成長前景仍然良好。

We have strong growth coming from upgrade projects in North America from several MSOs as well as some international growth.

我們的強勁成長來自於北美多家 MSO 的升級項目以及一些國際成長。

And later on in the year, we expect our Remote-PHY products to begin to ship in volume.

今年晚些時候，我們預計我們的 Remote-PHY 產品將開始批量發貨。

And that's the product line that I think will contribute meaningfully to our revenue in the back half of the year, I suspect in all of those market segments this year.

我認為該產品線將對我們下半年的收入做出有意義的貢獻，我懷疑今年所有這些細分市場都會如此。

Just to clarify this to you, I mean, it sounds like June should be up sequentially, right?

只是為了向您澄清這一點，我的意思是，聽起來六月應該按順序進行，對吧？

I mean, demand is exceeding supply in March, and you won't have the Chinese New Year in June, and just -- and as you know, the inventory overhang is here, but I just want to make sure that, that assumption is right, that June should be up somewhat meaningfully here versus March?

我的意思是，三月的需求超過了供應，六月就不會過農曆新年了，正如你所知，庫存過剩已經存在，但我只是想確保這一假設是對吧，六月相對於三月份應該會有一些有意義的上漲？

I mean, the key -- we don't -- we only guide one quarter out, so I can't comment specifically on that.

我的意思是，關鍵——我們沒有——我們只引導四分之一，所以我不能對此具體發表評論。

But I do think there's -- well, should be less impactful in a negative sense for us in the next quarter.

但我確實認為，下個季度對我們的負面影響應該會減少。

For example, a lack of Chinese New Year and other things that you mentioned.

例如缺少過年等你提到的事情。

Okay, just one more to sneak in here.

好吧，還有一個可以潛入這裡。

I mean, the CapEx spending you're talking about is a pretty big step-up.

我的意思是，你所說的資本支出是一個相當大的進步。

I'm just wondering -- and the plan is not going to be done here until 2020.

我只是想知道——這個計劃要到 2020 年才會在這裡完成。

So should we think about '18 as being kind of a peak year for CapEx, or what is -- and I guess, also, what's the sort of headwind to gross margin, I think around depreciation expense, as we kind of move through the year, could you help us a little bit on the CapEx plans?

因此，我們是否應該將 18 年視為資本支出的高峰年，或者我想，毛利率的逆風是什麼，我認為圍繞折舊費用，因為我們正在經歷今年，您能在資本支出計劃上為我們提供一些幫助嗎？

Yes.

是的。

So this year, we'll -- it's the heaviest CapEx year that we've had as a company.

因此，今年，我們將—這是我們公司資本支出最重的一年。

I think it's worth pointing out, the last time that we had a major step-up in CapEx was when invested in production facilities here in Sugarland.

我認為值得指出的是，我們上次大幅提高資本支出是在 Sugarland 投資生產設施時。

And I think that's worked out very well for us.

我認為這對我們來說非常有效。

We were able to expand our capacity and take advantage of the increase in data center business in particular that we saw as well as position ourselves well for the next couple of years.

我們能夠擴大產能並利用資料中心業務的成長，特別是我們看到的資料中心業務的成長，並為未來幾年做好定位。

This new factory, as you mentioned, will come online in 2020.

正如您所提到的，這個新工廠將於 2020 年投產。

It's designed to fuel our growth for the period beginning in 2020 and beyond.

它旨在推動我們 2020 年及以後時期的成長。

As far as whether this is a peak year in CapEx, we've often said that we look at CapEx on a pretty short-term basis.

至於今年是否是資本支出的高峰年，我們常說我們會從相當短期的角度來看資本支出。

I mean, obviously, this particular chunk of CapEx related to the building is a longer-term investment, but generally speaking, our annual CapEx budgets are decided, based on what we see our near-term revenue prospects.

我的意思是，顯然，與建築相關的資本支出的這一特定部分是一項長期投資，但一般來說，我們的年度資本支出預算是根據我們對近期收入前景的看法來決定的。

So I can't really give you a sense of whether we think 2019 or 2020 will be higher or lower.

因此，我無法真正讓您了解我們認為 2019 年或 2020 年會更高還是更低。

But I can say that step-ups or increases in CapEx, generally are associated with bright outlook for us in terms of future revenue.

但我可以說，資本支出的增加或增加通常與我們未來收入的光明前景有關。

And this particular step-up in CapEx is no exception.

資本支出的這項特殊提升也不例外。

Our next question comes from Fahad Najam of Cowan and Company.

我們的下一個問題來自 Cowan and Company 的 Fahad Najam。

Stefan and Thompson, just a couple of quick questions.

史特凡和湯普森，只是幾個簡單的問題。

One, maybe I misheard, but you addressed that regarding the inventory buildup, is it just one particular customer or is it more than one customer that has the inventory buildup?

一，也許我聽錯了，但您談到了關於庫存累積的問題，是只有一位特定客戶還是不只一位客戶有庫存累積？

It's just one customer.

這只是一位顧客。

It's just one customer.

這只是一位顧客。

So regarding the weakness that you cited from your data center customers, if -- hopefully, I got my math right, if your customer, which was 19% this quarter and the one that was 33% this quarter, seems to have sequentially come down.

因此，關於您從資料中心客戶那裡提到的弱點，如果—希望我的數學是正確的，如果您的客戶（本季為 19%，本季為 33%）似乎已連續下降。

Is there any particular seasonality that drives this sequential weakness in the fourth quarter?

是否有任何特殊的季節性因素導致第四季的連續疲軟？

Or you would think that that's something to do with outside of seasonality?

或者您會認為這與季節性之外有關？

Yes.

是的。

I can't really comment on, obviously, specific customers and their trends.

顯然，我無法真正評論特定客戶及其趨勢。

But I think it's not reasonable to expect that in any given quarter, there can be a lot of things that affect a particular customer's purchasing partners, timing of orders, specific things that they're doing within their data centers, what type of products they're deploying in the mix.

但我認為，期望在任何給定的季度中，可能有很多因素會影響特定客戶的採購合作夥伴、訂單時間、他們在資料中心內所做的具體事情、他們購買的產品類型，這是不合理的。

So there's a lot of things that can affect that on a short-term basis.

因此，有很多因素會在短期內影響這一點。

But longer term, I think we've seen strong growth from our hyperscale customers, and we would expect to continue to see their volume growth in the future.

但從長遠來看，我認為我們已經看到超大規模客戶的強勁成長，我們預計未來他們的銷售將繼續成長。

Got it.

知道了。

Now switching on to margins.

現在切換到邊距。

In light of this new production facility that you're building, I just wanted to, kind of, get a sense on how that would impact your overall -- how should we think about the margins going forward?

鑑於您正在建造的這個新生產設施，我只是想了解一下這將如何影響您的整體 - 我們應該如何考慮未來的利潤率？

Is there like, a minimum threshold for fixed cost that you need to absorb in.

您需要吸收的固定成本是否有最低門檻？

Is that fixed cost is going to be higher as a result of this new incremental facility and how should we think about margins, the minimum volume that you're require to dive your targeted 40 -- 45 -- 41% to 45% margin, if you were to maintain that?

由於這種新的增量設施，固定成本是否會更高？ 我們應該如何考慮利潤率，將目標利潤率從 40 - 45 - 41% 降至 45% 所需的最低數量，如果你要維持這個？

I'm not quite sure I follow all of your question there.

我不太確定我是否聽懂了你提出的所有問題。

We've said that we expect margins to maintain in that range of 41% to 45%, in general for the foreseeable future.

我們說過，在可預見的未來，我們預期利潤率總體上將維持在 41% 至 45% 的範圍內。

So that's where we expect it to be.

這就是我們所期望的。

Obviously, I can't comment at this point.

顯然，我現在無法發表評論。

We're talking about a factory that might come online in 2020.

我們正在談論一家可能在 2020 年上線的工廠。

So I can't tell you, specifically, how much product we expect to produce in there at that time, or what our margin on this products is likely to be.

因此，我無法具體告訴您我們當時預計在那裡生產更多產品，或者我們在這些產品上的利潤可能是多少。

It's quite a ways into the future.

這是通往未來的一條路。

So not sure that answers your questions, but...

所以不確定這是否能回答你的問題，但是......

Let me rephrase what I was trying to ask.

讓我重新表達一下我想問的問題。

What I was trying to get to was that today you have a minimum fixed cost that you have in -- as a result of this new facility, we would expect the minimum fixed cost to increase and I was just trying to see in terms of your projection, how much minimum volume you would require to offset that incremental fixed cost.

我想要達到的是，今天你有一個最低固定成本——由於這個新設施，我們預計最低固定成本會增加，我只是想看看你的預測，您需要多少最小數量來抵消增量固定成本。

And two, I'm just making sure if my assumptions are correct that this would actually increase your overall fixed cost.

第二，我只是確定我的假設是否正確，這實際上會增加您的整體固定成本。

Well, I mean, it will increase our overall fixed cost.

嗯，我的意思是，這會增加我們的整體固定成本。

We'll have additional depreciation, for example, on the new factory.

例如，我們將對新工廠進行額外折舊。

So that is true.

所以這是真的。

I think that -- I mean, you could probably do the math on the investments that we're making and the depreciation and time period that were talking about.

我認為——我的意思是，你可能可以對我們正在進行的投資以及我們正在討論的折舊和時間段進行數學計算。

But that's relatively minor compared to the total assets of the company right now and the depreciation of assets we've had.

但與公司目前的總資產和我們擁有的資產折舊相比，這相對較小。

So I'm not sure, I'm -- again, I'm not sure I'm answering your question, but that's about as far as I can go.

所以我不確定，我再次強調，我不確定我是否在回答你的問題，但這就是我所能回答的。

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

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

Questions on product mix, I guess, to some degree following on, kind of, the 40 versus the 100 gig discussion.

我想，關於產品組合的問題在某種程度上是繼 40 人與 100 人演出討論之後的。

I wonder, did you make any comments on PSM4 versus CWDM4 within 100 gig trend there, either in the quarter or maybe more importantly, in the outlook, whether you have any commentary about 40 versus 100 gig?

我想知道，您是否對 100 gig 趨勢內的 PSM4 與 CWDM4 發表過任何評論，無論是在本季度，還是更重要的是，在展望中，您是否對 40 gig 與 100 gig 有任何評論？

Assuming data center is responsible for most of the sequential decline that you're forecasting there.

假設資料中心是您預測的大部分連續下降的原因。

Do you expect any, sort of, change in that mix 40 versus 100?

您預計 40 與 100 的組合會有什麼改變嗎？

And then within 100, anything notable from a CWDM versus PSM standpoint for either the quarter or the outlook?

然後在 100 以內，從 CWDM 與 PSM 的角度來看，無論是季度還是前景，有什麼值得注意的地方嗎？

So as I mentioned earlier, we expect 100 gig to continue to grow and 40 gig to, sort of, decline.

正如我之前提到的，我們預計 100 份演出將繼續增長，而 40 份演出將有所下降。

So that's what we expect in terms of trends between 40 and 100.

這就是我們對 40 到 100 之間趨勢的預期。

Within 100 gig, as you know, we have CWDM and PSM.

如您所知，在 100 gig 內，我們有 CWDM 和 PSM。

We didn't give any specific numbers.

我們沒有給出任何具體數字。

But we have said in the past, and we continue to believe that CWDM is really -- represents -- for most of our customers represents the product of choice, particularly, as the price differential between CWDM and PSM has reduced, customers tend to buy more CWDM than PSM.

但我們過去說過，而且我們仍然相信 CWDM 確實代表了我們大多數客戶的選擇產品，特別是隨著 CWDM 和 PSM 之間的價格差異縮小，客戶傾向於購買CWDM 多於 PSM。

And that's not to say, there's not going to be a mix there.

這並不是說，那裡不會有混合。

But we do expect CWDM to continue to grow in prominence within that 100 gig segment.

但我們確實預期 CWDM 將在 100 演出細分市場中繼續佔據主導地位。

I guess, follow-up with the sort of continue-to-grow comment.

我想，後續會發表一些持續成長的評論。

I think that's true, kind of, on a year-over-year basis for 100 gig.

我認為對於 100 場演出來說，這在某種程度上是正確的。

But I think you did have your lowest 100-gig quarter of the year in Q4.

但我認為第四季的 100 場演出確實是今年季度最低的。

And I think your revenue has gone around 40% sequentially.

我認為你們的收入比上一季成長了 40% 左右。

So I guess, what I was getting at is, do you expect -- extent you expect to continue growth in 100 gig, kind of, on a year-over-year basis, say, call it, off a base of $120 million, to the extent you just did 22 that would imply a pretty significant step-up, I would assume.

所以我想，我的意思是，你是否期望 - 你期望在 100 場演出中繼續增長的程度，在同比基礎上，比如說，在 1.2 億美元的基礎上，我認為，如果你剛剛完成了22 ，這將意味著一個相當重大的進步。

I don't know whether that would be starting in Q1 or what will be driving that?

我不知道這是否會從第一季開始，或者是什麼推動了這一趨勢？

So given that framework, I guess, my real question was, do you expect 100 gig to grow in Q1 sequentially?

因此，考慮到這個框架，我想，我真正的問題是，您預計第一季會連續成長 100 兆嗎？

And I just have a brief follow-up on pricing after that.

之後我只是對定價進行了簡短的跟進。

Yes, we don't give guidance by particular product within the segment.

是的，我們不會針對該細分市場內的特定產品提供指引。

So can't comment on that.

所以不能對此發表評論。

Okay.

好的。

So final question for me then, what you did comment on was, expecting a more favorable pricing environment in '18 versus '17.

那麼我的最後一個問題是，您的評論是，預計 18 年的定價環境比 17 年的定價環境更有利。

That again, I guess, counter to a lot of what we've heard in terms of concerns from silicon photonics based competitors and some pretty aggressive pricing.

我想，這又與我們從矽光子競爭對手那裡聽到的許多擔憂以及一些相當激進的定價相反。

I wonder, did that pricing hit in late '17, and maybe that's why '18 looks better?

我想知道，這個定價是否是在 17 年末達到的，也許這就是為什麼 18 年看起來更好？

Or in general, if you could talk about the dynamics around the pricing environment given that it would appear that some of these aggressive or would be aggressive price leaders are having problems delivering, which you would think would be, constructive for pricing.

或者總的來說，如果您可以談論定價環境的動態，因為一些激進的或可能激進的價格領導者似乎在交付方面遇到了問題，您認為這對定價是有建設性的。

I wonder, is that's sort of what behind your more favorable outlook?

我想知道，這就是你更樂觀的前景背後的原因嗎？

Sure.

當然。

Just to be clear, I didn't -- when you say more favorable outlook, were several, that the rate of price decline should decrease in 2018 versus 2017.

需要澄清的是，當你說更有利的前景時，我並沒有認為 2018 年的價格下跌速度應該比 2017 年有所下降。

That's not to say that we expect prices to be more favorable and other words higher for us.

這並不是說我們預期價格會更優惠，換句話說，價格會更高。

Expect a decline, its just we expecting them to decline at a lower rate that as a percentage of decline this year would likely be less than it was last year, just want everybody to understand, make sure that we're on the same page.

預計會出現下降，只是我們預計它們會以較低的速度下降，今年下降的百分比可能會低於去年，只是希望每個人都能理解，確保我們達成共識。

Why we believe that?

為什麼我們相信這一點？

Well, first of all, for us, we can look at our purchase contracts and purchase prices that we've negotiated with customers and just look at was those clients are for those customers that we already have agreements with.

嗯，首先，對於我們來說，我們可以查看我們與客戶協商的採購合約和採購價格，看看這些客戶是否是我們已經與之達成協議的客戶。

And so, that gives us a fairly high degree of confidence already.

因此，這已經給了我們相當高的信心。

In addition, as you mentioned, there are competitors who several of whom have already said that they intend to minimize their activities in 100 gig, partly because of the pricing environment, perhaps, in 2017.

此外，正如您所提到的，有些競爭對手已經表示，他們打算盡量減少 100 場演出的活動，部分原因可能是 2017 年的定價環境。

And then our platform, as we've said many times, and our -- the way that we've engineered our company and our products to be able to produce these types of high-performance, transceiver products with very attractive cost profiles and our ability to continue to squeeze costs out of those products as we move forward, also gives us some strong degree of confidence that we can maintain our gross margins, even in -- what has been and will likely to remain a fairly competitive price environment.

然後是我們的平台，正如我們多次說過的那樣，以及我們設計公司和產品的方式，以便能夠生產具有非常有吸引力的成本概況的這些類型的高性能收發器產品，以及我們的產品。隨著我們的前進，我們有能力繼續壓縮這些產品的成本，這也給了我們一定程度的信心，即使在過去和將來可能保持相當有競爭力的價格環境下，我們也能維持毛利率。

(technical difficulty)

（技術難度）

'17 versus '18?

'17 與 '18？

No, I can't give you.

不，我不能給你。

I'm sure competitors would love to know that we forward price or products for 2018.

我確信競爭對手會很想知道我們轉發 2018 年的價格或產品。

So I won't go there.

所以我不會去那裡。

What I can say is that we reduced our cost on our 100 gig products by 36% in the last quarter -- last 4 quarters.

我能說的是，我們在上個季度（即過去 4 個季度）將 100 場演出產品的成本降低了 36%。

So I mean, I think we're not done yet.

所以我的意思是，我認為我們還沒有完成。

There's more cost reduction that we can do, as we noted in our call, we're spending some money on R&D to bring on some of those efforts.

正如我們在電話會議中指出的那樣，我們可以採取更多措施來降低成本，我們正在研發上花費一些資金來實現其中一些努力。

So we're prepared for the price, we're well prepared for the pricing environment that we expect to see this year.

因此，我們已經做好了價格準備，我們已經為今年預期的定價環境做好了充分準備。

And we stand behind our 41% to 45% gross margin target while we do that.

在此過程中，我們堅持 41% 至 45% 的毛利率目標。

Okay.

好的。

Really last one.

真的是最後一張了

I'm -- I apologize for this, but -- and you wouldn't say that, that pricing environment in '17, or would you contributed to relatively weak 100 gig results in Q4, either as a result of price declines or maybe walking away from business that you felt was unattractive from a pricing standpoint?

我對此表示歉意，但是，你不會這麼說，17 年的定價環境，或者你是否會因為價格下降或可能導致第四季度 100 場演出的業績相對疲軟？的業務？

Well, no.

嗯，不。

Were not walking away from business that we felt is unattractive.

我們並沒有放棄那些我們認為沒有吸引力的業務。

We would do that.

我們會這麼做的。

I mean, we're prepared to do that, but that has not been a factor for us, because our costs are very attractive and were able to get good gross margins even as the pricing declines.

我的意思是，我們準備好這樣做，但這對我們來說並不是一個因素，因為我們的成本非常有吸引力，即使定價下降也能夠獲得良好的毛利率。

What -- it is a fact, of course that as the price comes down, the revenue will decline unless units go up, but at least the same -- this price is declining.

當然，事實是，隨著價格下降，收入將會下降，除非銷量增加，但至少是相同的，這個價格正在下降。

So that is, I mean, is in that sense, it certainly headwind that we have to work against.

所以，我的意思是，從這個意義上來說，我們必須克服逆風。

But again, I think the more important thing is really can we maintain our gross margins in this pricing environment and we've been able to do that.

但我再次認為，更重要的是我們能否在這種定價環境下維持毛利率，而我們已經做到了。

Our next question comes from Richard Shannon from Craig-Hallum.

我們的下一個問題來自 Craig-Hallum 的 Richard Shannon。

Probably just a few for me.

對我來說可能只有幾個。

First one is, kind of, talking on the 100 gig topic here.

第一個是在這裡談論 100 場演出的話題。

I'll maybe ask the questions slightly different manner.

我可能會以稍微不同的方式提出問題。

Stefan if you'll respond to it.

斯特凡，如果你願意回應的話。

But you think about modeling a 40 versus 100 gig, I think in the last quarter, I think, you said 38 versus 56 percentage points of the data center revenues.

但你考慮對 40 與 100 場演出進行建模，我認為在上個季度，你說資料中心收入的 38 個百分點與 56 個百分點。

When does that crossover?

什麼時候交叉？

Do you expect that to crossover this year anyway that you can comment on it in that manner?

您是否預計今年會出現這種情況，以便您可以以這種方式發表評論？

Well, it crossed over in Q3 in the sense that 100 gig was higher than 40 gig for us in Q3.

好吧，它在第三季度發生了交叉，因為我們在第三季的 100 gig 高於 40 gig。

Q4 was a little bit different.

第四季有點不同。

Q1, I would -- again, we don't -- were not going to give you forward guidance on that, but I have said that longer-term trend is for CWDM to predominate -- I'm sorry, for -- CWDM to predominate but also for 100 gig to dominate over 40 gig in the future.

Q1，我會——再說一遍，我們不會——不會就此向您提供前瞻性指導，但我說過，長期趨勢是 CWDM 占主導地位——我很抱歉——CWDM未來，100 場演出將主導40 多場演出。

Okay.

好的。

Fair enough, I'll follow-up offline on that one.

公平地說，我會在線下跟進此事。

But Stefan, may be discussion about the TAM here.

但是Stefan，這裡可能正在討論TAM。

We've talked a little bit about share and pricing out there, but what about the unit market growth.

我們已經討論了一些關於市場佔有率和定價的問題，但是單位市場的成長又如何呢？

Can you give us a sense of what that market looks like growing this year.

能為我們介紹一下今年市場的成長嗎？

I'm more interested in 100 gig really if you can characterize or quantify that in any way would be great, please.

我對 100 場演出更感興趣，如果你能以任何方式描述或量化它，那就太好了。

I think, for us, the most important thing is -- as we've talked about earlier, our ability to attract new customers.

我認為，對我們來說，最重要的是——正如我們之前談到的，我們吸引新客戶的能力。

I mean, at this point, we have commanding a share among the hyperscale customers.

我的意思是，目前我們在超大規模客戶中佔據了一定的份額。

Who represent a good portion of the market, but there's certainly a large base of customers out there, besides the hyperscale customers that we already have.

他們代表了很大一部分市場，但除了我們已經擁有的超大規模客戶之外，肯定還有大量的客戶群。

And I think that's where we're really focusing our efforts, as we look to, particularly to the second half of 2018.

我認為這才是我們真正重點關注的領域，正如我們所期望的那樣，特別是 2018 年下半年。

Of course, we're going to continue to serve and serve well our existing hyperscale data center customers.

當然，我們將繼續服務並服務現有的超大規模資料中心客戶。

But the opportunity is to expand our customer base is one that we've been working very, very diligently on, really over the last year.

但擴大我們的客戶群的機會是我們在過去一年裡一直非常非常努力的機會。

We've talked about the number of design wins and things that we have.

我們已經討論了設計獲勝的數量以及我們擁有的東西。

And in fact, those will start to generate revenue.

事實上，這些將開始產生收入。

And so when you look at the overall market size for us, I think we still got a long way to go before we have to worry about overall market growth, kind of, limiting the rate at which we can grow.

因此，當你看看我們的整體市場規模時，我認為在我們不得不擔心整體市場成長之前，我們還有很長的路要走，這會限制我們的成長速度。

Our rate of growth is dependent on how well we can bring on new customers as well as, obviously, continue to serve the existing customers that we have with our existing products and new products, like our 400 gig products (inaudible).

我們的成長率取決於我們吸引新客戶的能力，以及顯然，繼續使用現有產品和新產品（例如我們的 400 演出產品（聽不清楚））為現有客戶提供服務。

Okay, fair enough.

好吧，很公平。

Last question for me, on the EML laser that you announced, when do we see that in products demoed and announced and then eventually, generating revenues?

我的最後一個問題是，關於您宣布的 EML 雷射器，我們什麼時候可以在產品演示和宣布中看到這一點，然後最終產生收入？

I will have it at OFC for demo purposes, which will be the middle of March, as you know, about 3 weeks from now.

我將在 OFC 進行演示，時間是三月中旬，如你所知，大約三週後。

As far as when it'll be in products, it's going to be a cornerstone of our 400 gig product line.

至於何時投入產品，它將成為我們 400 場演出產品線的基石。

And we'll expect to start to see that, certainly, in demo, by next year for sure.

我們預計明年肯定會在演示中看到這一點。

(Operator Instructions) Our next question comes from Nick Johnson of Piper Jaffray

（操作員說明）我們的下一個問題來自 Piper Jaffray 的 Nick Johnson

Just follow back on CWDM products.

只需關注 CWDM 產品即可。

I guess, what we're hearing from competitors, the customers are turning more towards the CWDM versus traditionally more longer-reach product, as they maybe getting up to the 10 kilometer range.

我想，我們從競爭對手那裡聽到的消息是，與傳統上更遠距離的產品相比，客戶更傾向於 CWDM，因為他們可能會達到 10 公里的範圍。

So I'm curious, if you're seeing the same.

所以我很好奇你是否也看到同樣的情況。

And if so, when are you expecting a larger customer base here?

如果是這樣，您預計什麼時候會在這裡擁有更大的客戶群？

New customers entering this?

新客戶進入這個？

Can you just dive into that a little bit deeper?

能再深入一點嗎？

Yes.

是的。

So first of all, I agree with your comments that CWDM is likely to become more important to customers in the future.

首先，我同意您的觀點，即 CWDM 未來可能對客戶變得更加重要。

I think, we said just about as much earlier in the call.

我想，我們在電話會議早些時候就說過同樣的話。

I think we're very well positioned in this market for CWDM.

我認為我們在 CWDM 市場中處於非常有利的位置。

It's worth noting that -- the primary difference between CWDM and PSM is that CWDM uses 4 different lasers, 4 different colors, 4 different lambdas of lasers.

值得注意的是，CWDM 和 PSM 之間的主要區別在於 CWDM 使用 4 種不同的雷射、4 種不同的顏色、4 種不同的雷射波長。

Our ability to manufacture those lasers in-house gives us a significant advantage, both in terms of costs and our ability to manage inventory and lead times for those CWDM devices.

我們內部製造這些雷射的能力為我們帶來了顯著的優勢，無論是在成本方面還是在管理這些 CWDM 設備庫存和交貨時間的能力方面。

So I think, you're right, CWDM is predominate.

所以我認為，你是對的，CWDM 占主導地位。

And I also think, we're well positioned for this.

我還認為，我們已經為此做好了準備。

Okay, but the revenues for CWDM were I'm assuming, down in the quarter than if 100G was down?

好的，但是我假設 CWDM 的收入在本季度會比 100G 下降時下降嗎？

Is that correct?

這是正確的嗎？

I think in the past, you've also broken out, CWDM and PSM4 at least said if they're up or down by a certain percentage, are you guys able to break that out at all?

我想過去你們也突破過，CWDM和PSM4至少說如果上升或下降一定比例，你們能突破嗎？

So as I said, at any given quarter, there can be timing of orders, the particular products that are being ordered, where customers are ordering, and for what segment of their data data center.

正如我所說，在任何給定的季度，都可能存在訂單時間、正在訂購的特定產品、客戶在哪裡訂購以及針對其資料中心的哪個部分。

So it makes that difficult to project.

因此這使得預測變得困難。

But the trend, certainly, is for more CWDM and less PSM.

但毫無疑問，趨勢是更多地使用 CWDM，更少地使用 PSM。

At this time, we have no further questions.

目前，我們沒有其他問題了。

And I would like to turn the call over to Dr. Thompson Lin for any closing remarks.

我想將電話轉給 Thompson Lin 博士，請他發表結束語。

Okay.

好的。

Thank you for joining us today.

感謝您今天加入我們。

As always, we thank all the investors, customers and employees for your continued support.

一如既往，我們感謝所有投資者、客戶和員工的持續支持。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。