祥茂光電 (AAOI) 2018 Q1 法說會逐字稿

Good afternoon. My name is Jaime, and I will be your conference operator today. At this time, I would like to welcome everyone to Applied Optoelectronics' First Quarter 2018 Earnings Conference Call. (Operator Instructions) Please also note that today's event is being recorded.

午安.我叫 Jaime，今天我將擔任您的會議主持人。現在，我歡迎大家參加應用光電公司 2018 年第一季財報電話會議。（操作員指示）另請注意，今天的活動正在被記錄。

And at this time, I'd like to turn the conference call over to Maria Riley, Investor Relations for AOI. Ms. Riley, you may begin.

現在，我想將電話會議交給 AOI 投資者關係部門的 Maria Riley。萊利女士，你可以開始了。

Thank you. I'm Maria Riley, Applied Optoelectronics' Investor Relations, and I'm pleased to welcome you to AOI's First Quarter 2018 Financial Results Conference Call.

謝謝。我是應用光電公司投資者關係部門的瑪麗亞·萊利 (Maria Riley)，很高興歡迎您參加 AOI 2018 年第一季財務業績電話會議。

After the market close today, AOI issued a press release announcing its first quarter 2018 results and provided its outlook for the second quarter of 2018. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to that recording can be found on the Investor Relations page of the AOI website and will be archived for 1 year.

今天收盤後，AOI發布新聞稿，公佈了2018年第一季的業績，並提供了2018年第二季的展望。新聞稿也可在本公司網站 ao-inc.com 上查閱。本次通話正在錄音並進行網路直播。此錄音的連結可以在 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. Thompson will give an overview of AOI's Q1 results, and Stefan will provide financial details and the outlook for the second quarter of 2018. A question-and-answer session will follow our prepared remarks.

參加今天電話會議的有 AOI 創辦人、董事長兼執行長 Thompson Lin 博士和 AOI 財務長兼首席策略長 Stefan Murry 博士。湯普森將概述 AOI 第一季的業績，史蒂芬將提供財務細節和 2018 年第二季的展望。我們準備好的發言之後將進行問答環節。

Before we begin, I would like to remind you to review AOI's safe harbor statement. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. You can identify forward-looking statements by terminologies such as may, will, should, expects, plans, anticipates, believes or estimates and by other similar expressions. Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this earnings call to conform these statements to actual results or to changes in the company's expectations. 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.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。在今天的電話會議上，管理階層將做出前瞻性陳述。這些前瞻性陳述涉及風險和不確定性以及假設和當前預期，可能導致公司的實際結果與此類前瞻性陳述中預期的結果有重大差異。您可以透過可能、將、應該、預期、計劃、預期、相信或估計等術語以及其他類似的表達來識別前瞻性陳述。除法律要求外，我們不承擔在本次收益電話會議召開日期之後以任何理由更新前瞻性陳述的義務，以使這些陳述符合實際結果或公司預期的變化。有關可能影響公司業務的其他風險的更多信息，請參閱公司向美國證券交易委員會提交的報告的“風險因素”部分。

Also, with the exception of revenue, all financial numbers discussed today are on a non-GAAP basis, unless specifically noted otherwise. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation between our GAAP and non-GAAP measures as well as a discussion of why we present non-GAAP financial measures are included in our earnings press release that is available on our website.

此外，除收入外，今天討論的所有財務數據均基於非 GAAP，除非另有特別說明。非公認會計準則財務指標不應被單獨考慮或取代根據公認會計準則編制的結果。我們的 GAAP 和非 GAAP 指標之間的對帳以及我們為何採用非 GAAP 財務指標的討論均包含在我們網站上的收益新聞稿中。

Before moving to the financial results, I'd like to announce that AOI management will attend the Cowen Technology, Media & Telecom Conference in New York on May 30. We hope to have the opportunity to see many of you there. Additionally, I'd like to note the date of our second quarter 2018 earnings call is currently scheduled for Tuesday, August 7, 2018.

在公佈財務業績之前，我想宣布 AOI 管理層將於 5 月 30 日參加在紐約舉行的 Cowen 技術、媒體和電信會議。我們希望有機會在那裡見到你們。此外，我想指出的是，我們 2018 年第二季財報電話會議的日期目前定於 2018 年 8 月 7 日星期二。

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

現在我想把電話轉給應用光電公司的創辦人、董事長兼執行長 Thompson Lin 博士。湯普森？

Thank you, Maria. Good afternoon, everyone, and thank you for joining us today and reviewing our first quarter results. AOI delivered revenue of $65.2 million and gross margin of 40%, which led to net income of $5.6 million or $0.28 per diluted share. Our revenue came in slightly below our guidance as the delivery of certain order slipped into Q2 due to higher-than-expected employee turnover in our China factory as a result of the Chinese New Year. This order had been shipped in Q2.

謝謝你，瑪麗亞。大家下午好，感謝大家今天加入我們並回顧我們的第一季業績。AOI 的營收為 6,520 萬美元，毛利率為 40%，淨收入為 560 萬美元，即每股收益 0.28 美元。由於農曆新年導致我們中國工廠的員工流動率高於預期，導致某些訂單的交付推遲到第二季度，因此我們的收入略低於預期。該訂單已於第二季出貨。

On a more positive note, market trend were in line with our expectations. We couldn't believe the first quarter we project the pattern of the decline in datacenter demand we have seen over the past few quarters. Datacenter inventory condition has begun to normalize with our expectation being that inventory will return to more normal level later this year. We also currently expect 100G volumes to more than double in the second half of the year over the first half as we deliver on the committed orders we announced last quarter.

更正面的一面是，市場趨勢符合我們的預期。我們無法相信第一季我們預測的資料中心需求下降模式與過去幾季看到的一致。資料中心庫存狀況已經開始正常化，我們預計今年稍後庫存將恢復到更正常的水平。我們目前也預計，隨著我們履行上個季度宣布的承諾訂單，下半年 100G 的銷售量將比上半年增加一倍以上。

We also made good progress in diversifying our customer base with 9 design win, including 5 for our 100G products. And some of this design wins were with new customers.

我們在客戶群多元化方面也取得了良好進展，共獲得 9 項設計勝利，其中 5 項是 100G 產品。其中一些設計贏得了新客戶的青睞。

In order to meet our customers' needs, AOI will continue to innovate both in new product development as well as in advanced automation in the manufacturing process. Our recently announced 200G PAM4 PIN photodiode array is a great example. With this new technology, AOI now controls production of both the laser and the photodiode array, which are the most critical and expensive component required in the production of 200G and 400G transceiver. We believe our continued innovation, vertical integration and our proprietary manufacturing process together set AOI apart from our competitor as a cost and quality leader in this highly competitive industry.

為了滿足客戶的需求，AOI 將繼續在新產品開發以及製造流程中的先進自動化方面進行創新。我們最近發表的 200G PAM4 PIN 光電二極體陣列就是一個很好的例子。借助這項新技術，AOI 現在可以控制雷射和光電二極體陣列的生產，它們是 200G 和 400G 收發器生產所需的最關鍵和最昂貴的組件。我們相信，我們的持續創新、垂直整合和專有製造流程將使 AOI 從競爭對手中脫穎而出，成為這個競爭激烈的行業中成本和品質的領導者。

With that, I will turn the call over to Stefan to give you the details of our Q1 performance and outlook for Q2. Stefan?

說完這些，我將把電話交給史蒂芬，讓他向您詳細介紹我們第一季的業績以及第二季的展望。史蒂芬？

Thank you, Thompson. Total revenue for the first quarter was $65.2 million compared with $96.2 million reported in Q1 last year. As Thompson mentioned, our revenue came in below our expectations due to slight delays in the completion of some orders as we worked through higher-than-expected employee turnover in our China factory. As you may know, many of our products are manufactured in our Ningbo, China factory, which experiences a shutdown during the Lunar New Year. After the holiday, it is typical for some employees to fail to return to the factory on time or at all. This can affect our ability to produce sufficient products to meet our demand, which was the case this quarter. We were able to recruit the additional staff required in Ningbo, but because we needed to recruit and train a larger number of employees than usual, the process of bringing these new employees to full productivity took longer than expected, and some orders were delayed as a result. We worked closely with our customers to avoid any impact on them from these delays, which were only a few days in duration.

謝謝你，湯普森。第一季總收入為 6,520 萬美元，而去年第一季的總收入為 9,620 萬美元。正如湯普森所提到的，由於我們中國工廠的員工流動率高於預期，一些訂單的完成略有延遲，導致我們的收入低於預期。您可能知道，我們的許多產品都是在中國寧波工廠生產的，該工廠在農曆新年期間停工。假期過後，一些員工無法按時返回工廠或根本無法返回工廠的情況很常見。這會影響我們生產足夠的產品來滿足需求的能力，本季就是這種情況。我們能夠在寧波招募到所需的額外員工，但由於我們需要招募和培訓比平常更多的員工，因此讓這些新員工充分發揮生產力的過程比預期花費的時間更長，導致一些訂單被推遲。我們與客戶密切合作，以避免這些僅持續幾天的延誤對他們造成任何影響。

Looking ahead, as Thompson mentioned, we believe that unit sales of our 100G products will more than double in the second half of 2018 compared with the first half. This estimate is based largely on the committed orders we announced last quarter. While there will be some price reduction as volume increases this year, we believe that the percentage reduction in price over this time period will be less than we saw last year.

展望未來，正如湯普森所提到的，我們相信，2018 年下半年我們的 100G 產品的單位銷售將比上半年增長一倍以上。該估計主要基於我們上個季度公佈的承諾訂單。雖然今年隨著銷售量的增加價格會下降，但我們相信，這段時間內價格的下降百分比將低於去年。

In Q1, our datacenter revenue came in at $50.6 million compared with $79.6 million in Q1 of last year. In the quarter, 41% of our datacenter revenue was derived from our 100G transceiver products compared with 35% last quarter, and 53% was from our 40G products. We continue to maintain focus on diversifying our customer base and in the quarter had 9 design wins, including 5 for our 100G products. We believe our cost leadership, scalable production capacity, in-house component supply and track record of innovation will allow us to be successful in these customer engagements.

第一季度，我們的資料中心營收為 5,060 萬美元，而去年第一季為 7,960 萬美元。本季度，我們資料中心營收的 41% 來自 100G 收發器產品，而上一季這一比例為 35%，53% 來自 40G 產品。我們持續致力於客戶群的多元化，本季共獲得 9 項設計勝利，其中 5 項為 100G 產品。我們相信，我們的成本領先優勢、可擴展的生產能力、內部零件供應和創新記錄將使我們在這些客戶合作中取得成功。

As Thompson mentioned, AOI continues to innovate and expand our product portfolio. We recently announced the development of a 200G PAM4 PIN photodiode array that can be leveraged to produce 200G and 400G transceivers based on 50G per lambda technology. With the development of this new technology, AOI now manufactures the 2 most expensive components required to produce 200G and 400G transceivers in-house, enabling us to maintain low cost and reduce our time to market for these products.

正如湯普森所說，AOI 不斷創新並擴大我們的產品組合。我們最近宣布開發出 200G PAM4 PIN 光電二極體陣列，可用於生產基於每波長 50G 技術的 200G 和 400G 收發器。隨著這項新技術的發展，AOI 現在可以自行生產 200G 和 400G 收發器所需的兩種最昂貴的組件，使我們能夠保持低成本並縮短這些產品的上市時間。

Regarding cost reduction on our current 100G products, during the first quarter, AOI successfully transitioned a majority of the optical multiplexers used in our CWDM datacenter transceivers to in-house produced parts. By the end of Q3, we expect the majority of the demultiplexers to be sourced internally as well. Together, the multiplexer and demultiplexer pair represents the second-highest cost material in our CWDM modules, just behind the active optical components. By transitioning these to in-house produced parts, we are realizing significant cost reduction on these high-value components. This continues our strategy of vertical integration as we have now brought the lasers, the photodiodes and the MUX in-house with the DeMUX to follow in Q3. The cost advantage, time to market and flexibility afforded us by bringing these components in-house is a significant factor in our success and one that is a source of competitive advantage with our customers.

關於降低我們目前的 100G 產品的成本，在第一季度，AOI 成功地將我們 CWDM 資料中心收發器中使用的大多數光多工器轉換為內部生產的零件。到第三季末，我們預計大多數解復用器也將在內部採購。總之，復用器和解復用器對是我們 CWDM 模組中成本第二高的材料，僅次於主動光學元件。透過將這些部件轉換為內部生產的部件，我們實現了這些高價值部件成本的顯著降低。這延續了我們的垂直整​​合策略，因為我們現在已經將雷射、光電二極體和 MUX 引入內部，並將在第三季度推出 DeMUX。將這些組件引入內部為我們帶來成本優勢、上市時間和靈活性是我們成功的重要因素，也是我們與客戶競爭優勢的來源。

At OFC, we showcased our full suite of next-generation technology, including our 200 and 400G transceiver products and 100G EML and DML lasers. And we are very encouraged by the customer response. We also discussed during our OFC investor session our new 400G high-density light engine assembly, which extends our 40G and 100G platform to 400G. We expect to leverage this mature, high-quality and low-cost platform for years to come.

在 OFC 上，我們展示了全套下一代技術，包括我們的 200 和 400G 收發器產品以及 100G EML 和 DML 雷射。客戶的反應讓我們深受鼓舞。我們也在 OFC 投資者會議上討論了我們的新型 400G 高密度光引擎組件，它將我們的 40G 和 100G 平台擴展至 400G。我們希望在未來幾年內利用這個成熟、高品質且低成​​本的平台。

Turning to our cable television market. We generated revenue of $10.6 million compared with the unusually strong $13.1 million that we generated in Q1 of last year. Looking ahead, we continue to anticipate growth in this market, especially as demand for Remote-PHY picks up later this year.

轉向我們的有線電視市場。我們創造了 1,060 萬美元的收入，而去年第一季我們的收入異常強勁，達到 1,310 萬美元。展望未來，我們繼續預計該市場將會成長，尤其是今年稍後對 Remote-PHY 的需求將會回升。

Our telecom products delivered revenue of $3.6 million compared with $3.2 million in Q1 of last year. For the quarter, 78% of our revenue was from datacenter products, 16% from CATV products with the remaining 6% from FTTH, telecom and other. In the first quarter, we had 3 10%-or-greater customers in the datacenter business that contributed 36%, 26% and 14% of total revenue, respectively.

我們的電信產品收入為 360 萬美元，而去年第一季為 320 萬美元。本季度，我們的營收 78% 來自資料中心產品，16% 來自有線電視產品，其餘 6% 來自 FTTH、電信和其他。第一季度，我們的資料中心業務有 3 個 10% 或以上的客戶，分別貢獻了總收入的 36%、26% 和 14%。

Moving beyond revenue. We generated a gross margin of 40%, which represents a decrease of 100 basis points compared with the 41% reported last quarter. Our gross margin came in slightly below our expectations due to capacity underutilization during the Chinese New Year and higher-than-anticipated costs for training new employees in Ningbo.

超越收入。我們的毛利率為 40%，與上一季的 41% 相比下降了 100 個基點。由於農曆新年期間產能利用率不足以及寧波新進員工培訓成本高於預期，我們的毛利率略低於預期。

Total operating expenses in the quarter were $20.1 million or 30.8% of revenue compared with $18.9 million or 23.7% of revenue in the prior quarter. The sequential increase was mostly due to higher R&D expense as we invested in new production technologies that will enable further cost reduction on our transceiver products as well as 200G, 400G and Remote-PHY products. As a reminder, we expect R&D to remain at this level over the next few quarters while we focus our efforts on these initiatives.

本季總營運費用為 2,010 萬美元，佔營收的 30.8%，而上一季為 1,890 萬美元，佔營收的 23.7%。環比成長主要是由於我們投資了新的生產技術，從而進一步降低收發器產品以及 200G、400G 和 Remote-PHY 產品的成本，導致研發費用增加。提醒一下，我們預計未來幾季研發費用將保持在這個水平，同時我們將把精力集中在這些計劃上。

Operating income in Q1 was $6 million compared with operating income of $13.8 million in Q4 of 2017. Our operating margin in the quarter was 9.2% compared with the 17.3% reported in Q4 of 2017.

第一季的營業收入為 600 萬美元，而 2017 年第四季的營業收入為 1,380 萬美元。本季我們的營業利潤率為 9.2%，而 2017 年第四季為 17.3%。

During the quarter, we had a larger-than-expected foreign exchange loss associated with the settlement of intercompany accounts receivable balances. This negatively impacted our non-GAAP income by approximately $1.2 million.

本季度，我們在結算公司間應收帳款餘額時出現了超出預期的外匯損失。這對我們的非公認會計準則收入產生了約 120 萬美元的負面影響。

Non-GAAP net income after-tax for the first quarter was $5.6 million or $0.28 per diluted share compared with $21.8 million or $1.10 per diluted share in Q1 of 2017. GAAP net income for Q1 was $2.1 million or $0.11 per diluted share compared with GAAP net income of $19.8 million or $1 per diluted share in Q1 of last year. The Q1 weighted average fully diluted share count was approximately 20 million shares. We recognized approximately $0.3 million in tax benefit from employee options that were exercised during the quarter.

第一季非公認會計準則稅後淨利為 560 萬美元，即每股攤薄收益 0.28 美元，而 2017 年第一季為 2,180 萬美元，即每股攤薄收益 1.10 美元。第一季的 GAAP 淨收入為 210 萬美元，即每股攤薄收益 0.11 美元，而去年第一季的 GAAP 淨收入為 1,980 萬美元，即每股攤薄收益 1 美元。第一季加權平均完全稀釋股數約 2,000 萬股。我們從本季行使的員工選擇權中確認了約 30 萬美元的稅收收益。

Turning now to the balance sheet. We ended Q1 with $83.3 million in total cash, cash equivalents, short-term investments and restricted cash compared with $84 million at the end of the previous quarter. As of March 31, we had $92.6 million in inventory, an increase of $16.9 million from Q4. The increase in inventory is primarily attributed to higher work in process as we prepare for expected demand in Q2 and the second half of the year.

現在來看資產負債表。我們第一季末的現金、現金等價物、短期投資和受限現金總額為 8,330 萬美元，而上一季末為 8,400 萬美元。截至 3 月 31 日，我們的庫存價值為 9,260 萬美元，比第四季度增加了 1,690 萬美元。庫存增加主要歸因於我們在為第二季和下半年的預期需求做準備時增加的在製品。

We made a total of $9.7 million in capital investments in the quarter, including $7.5 million in production equipment and machinery and $2.1 million on construction and building improvements. We continue to expect our capital expenditures in 2018 to approach $109 million, with the construction of our new factory in China accounting for most of the increased spend compared to last year.

本季我們共進行了 970 萬美元的資本投資，其中包括 750 萬美元的生產設備和機械投資以及 210 萬美元的建築和建築改進投資。我們繼續預計 2018 年的資本支出將接近 1.09 億美元，其中與去年相比，大部分的增加支出將用於在中國建造新工廠。

Moving now to our Q2 outlook. We expect Q2 revenue to be between $75 million and $81 million and non-GAAP gross margin to be in the range of 39.5% to 41%. Non-GAAP net income is expected to be in the range of $7.8 million to $10.4 million, and non-GAAP EPS between $0.39 per share and $0.52 per share using a weighted average fully diluted share count of approximately 20 million shares. We expect our Q2 effective tax rate on our non-GAAP net income to be between 7% and 12%.

現在轉到我們的第二季展望。我們預計第二季營收將在 7,500 萬美元至 8,100 萬美元之間，非 GAAP 毛利率將在 39.5% 至 41% 之間。非公認會計準則淨收入預計在 780 萬美元至 1,040 萬美元之間，非公認會計準則每股收益預計在 0.39 美元/股至 0.52 美元/股之間（採用約 2,000 萬股的加權平均完全稀釋股數）。我們預計第二季非公認會計準則淨收入的有效稅率在 7% 至 12% 之間。

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

說完這些，我會把話題交還給接線員，進行問答環節。操作員？

(Operator Instructions) And our first question comes from Simon Leopold from Raymond James.

（操作員指示）我們的第一個問題來自雷蒙德詹姆斯的西蒙利奧波德。

A couple of things I wanted to check on. One was, from a longer-term perspective, I think you've given guidance for gross margin in a range of 41% to 45%. You're guiding a little bit below that for the June quarter. And I know this is one of the questions we get a lot given the Facebook commitment, worry about gross margin. Could you talk about the longer-term gross margin trend?

有幾件事我想檢查一下。一是，從長期來看，我認為您給出的毛利率預期在 41% 至 45% 之間。對於 6 月季度，您的預期略低於該數字。我知道這是我們在考慮 Facebook 承諾後經常被問到的問題之一，擔心毛利率。能談談長期毛利率趨勢嗎？

Yes, Simon. I think we still believe that we can, in the longer term, maintain that 41-plus percent gross margin. Part of what's affecting us right now is we have some inventory that we had to buy towards the end of the year and into the first quarter that was at a little bit higher cost than what we expected inventory to be at in the longer term. So that's pulling down the gross margin a little bit in this quarter and in Q2. The other thing, as we mentioned in the call, is we have a number of components that we're going to be bringing in-house. For example, we talked about the multiplexer and demultiplexer pair as well as the photodiode. And those components will also help us to reduce costs. So we do think we can get back up to that 41% range, but we have a little bit of work to do to get there.

是的，西蒙。我認為我們仍然相信，從長遠來看，我們可以維持41%以上的毛利率。目前對我們造成影響的部分原因是，我們必須在年底和第一季購買一些庫存，這些庫存的成本比我們預期的長期庫存成本略高。因此，這會稍微拉低本季和第二季的毛利率。另一件事，正如我們在電話中提到的，我們將把一些組件引入公司內部。例如，我們討論了多路復用器和多路分解器對以及光電二極體。這些組件也將幫助我們降低成本。因此，我們確實認為我們可以回到 41% 的範圍，但要達到這個目標我們還需要做一些工作。

Okay. And could you quantify how much or can you quantify how much revenue has slid from the March quarter into June? I'm just wondering why given the timing issues with what happened in March why the June outlook wasn't a little bit better.

好的。您能否量化從三月季度到六月的營收下滑了多少？我只是想知道，考慮到 3 月發生的時間問題，為什麼 6 月的前景沒有好一點。

Well, as we noted in the remarks, it's just a couple of days' worth of production. So basically, you could take our sort of average daily production and tack on 2 or 3 days to that. And that was the size of the slip. It was not that much. We had significant orders in the quarter, but we just couldn't ship all of them due to the personnel issues that we talked about around Chinese New Year.

嗯，正如我們在評論中提到的，這只是幾天的生產量。因此基本上，您可以根據我們的平均日產量再加上 2 或 3 天。這就是單據的大小。其實沒有那麼多。本季我們有大量訂單，但由於我們在農曆新年期間談到的人員問題，我們無法全部出貨。

Okay. And one last one. Arista on its earnings call last week and yesterday in its Analyst Meeting indicated that it viewed the 100 gig optical transceiver market as having adequate supply now. And it wasn't clear what exactly they were alluding to. Given your 100 gig shipments, it doesn't seem as if you've opened up the floodgates. I'm just wondering what you're seeing in terms of the marketplace of new capacity, competitive landscape.

好的。最後一個。Arista 在上週的收益電話會議和昨天的分析師會議上表示，它認為 100 千兆光纖收發器市場目前供應充足。目前還不清楚他們到底在暗示什麼。考慮到您的 100 千兆出貨量，看起來您並沒有打開閘門。我只是想知道您對新產能市場和競爭格局有何看法。

Yes. I mean, we continue to adjust our capacity as needed to make sure that we can meet the current demand and the demand that we expect to see in the future. I think we mentioned earlier that we expect the second half to be a pretty strong second half to the year. So we're certainly preparing to meet that demand. I don't know if that answered your entire question there, Simon, but...

是的。我的意思是，我們將根據需要繼續調整我們的產能，以確保我們能夠滿足當前的需求以及我們預期未來的需求。我想我們之前提到過，我們預計今年下半年將會是相當強勁的半年。所以我們當然正在準備滿足這項需求。我不知道這是否回答了你的全部問題，西蒙，但是......

Well, any commentary on competitive landscape because listening to the supply chain, for example, Fabrinet, it's not clear to us where a significant volume of new supply could be coming from. And so I'm not seeing it. I'm just wondering what you're seeing in terms of supply from your competitors.

好吧，任何關於競爭格局的評論，因為聽取供應鏈的意見，例如 Fabrinet，我們不清楚大量新供應可能來自哪裡。所以我沒有看到它。我只是想知道您從競爭對手的供應方面看到了什麼。

I mean, I think there's pretty good evidence that a couple of our competitors have either exited the market or are changing their focus in terms of the way that they attack the market. So from that perspective, I think the biggest change that we've seen is those competitors, most of whom work with the big producers in the first place, but they're basically changing their strategy or getting out altogether. Whereas AOI has been the cost leader in this market. I think we continue to believe that we are the cost leader. And I think in the long term that's what it takes for us to continue to win these customer engagements, as we mentioned in our remarks.

我的意思是，我認為有相當充分的證據表明，我們的一些競爭對手要么已經退出市場，要么正在改變他們進入市場的方式。因此從這個角度來看，我認為我們看到的最大變化是那些競爭對手，他們中的大多數人最初都與大型生產商合作，但他們基本上正在改變策略或完全退出。而AOI一直是該市場的成本領導者。我認為我們仍然相信我們是成本領先者。我認為從長遠來看，這就是我們繼續贏得客戶青睞所需要的，正如我們在評論中提到的那樣。

Our next question comes from Mark Kelleher from D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Mark Kelleher。

Just a follow-up on that last thought there. Let me ask in a different way. Are you seeing any change? A couple have exited, but there are a couple that are still in the market very aggressively pricing. Have you seen any change in that pricing dynamic?

這只是最後一個想法的後續。讓我換個方式問一下。你看到任何改變了嗎？一些公司已經退出，但仍有幾家公司在市場上積極定價。您是否發現定價動態有任何變化？

No, I don't think so. I mean, look, our prices are generally negotiated well in advance. So we think we have a pretty good handle on what the prices are going to be in the future. And we haven't seen anything in the pricing dynamic that's meaningfully changed from what it was before.

不，我不這麼認為。我的意思是，我們的價格一般都是事先商定的。因此我們認為我們對未來的價格走勢有相當好的把握。我們還沒有看到定價動態與以前相比發生任何重大變化。

Okay. And on those personnel issues that you encountered on the Chinese New Year, is that something that caught you by surprise? Is that something unusual? Is that something we should anticipate each March quarter? How odd was that, that you had that problem?

好的。那麼，您在農曆新年期間遇到的人事問題，是否讓您感到驚訝呢？這有什麼不尋常的嗎？這是我們每年三月季度都應該預料到的事情嗎？您遇到這個問題有多奇怪？

Well, I think anybody that produces product in China has issues surrounding the Chinese New Year. That is, there's typically factory shutdowns and there's personnel turnover around that time. That's definitely not unique to us. And it's something that we experience every first quarter. What we have to do is take a sort of an estimate on how many employees are going to come back and which employees, how many do we need to hire and that sort of thing. And obviously, this year, we were off by a little more than we expected. But I think it's worth mentioning that we've made so much progress over the last couple of years in terms of adding automation and things. If you go back a few years, we had a much larger problem in the first quarter, again, related to Chinese New Year. This year, while there was some slip, it was relatively minor compared to what we've seen in years past. And the way that we're doing that is by improving the automation so that we can retrain and rehire more workers and get them up to full productivity faster. It's also worth noting that this year, the Chinese New Year was a little later in the year than it sometimes is. And that also makes it a little bit harder for us to get the employees in the door and sort of get them up to full speed and still be able to ship by the end of the quarter.

嗯，我認為任何在中國生產產品的人都會遇到與中國新年相關的問題。也就是說，通常那個時候工廠會關閉，人員也會流動。這對我們來說絕對不是什麼獨特的事。這是我們每個第一季都會經歷的事情。我們要做的是估算一下有多少員工會回來，哪些員工會回來，我們需要雇用多少人等等。顯然，今年我們的差距比預期大一些。但我認為值得一提的是，過去幾年我們在增加自動化等方面取得了重大進展。如果回顧幾年前，我們在第一季遇到了更大的問題，同樣與中國新年有關。今年，雖然出現了一些下滑，但與過去幾年相比，下滑幅度相對較小。我們這樣做的方式是提高自動化程度，以便我們能夠重新培訓和重新僱用更多的工人，並讓他們更快達到最高生產力。另外值得注意的是，今年的農曆新年比往年稍晚。這也給我們招募員工、讓他們盡快達到全速工作並在本季末交付產品帶來了一些困難。

Our next question comes from James Kisner from Loop Capital.

我們的下一個問題來自 Loop Capital 的 James Kisner。

So I really appreciate the comments about the second half and should return to a normal level and much more growth, doubling of 100 gig. But maybe you'd help us, just the overall revenue level for the year. At this point, is it clear? Do you have visibility that you could actually grow your top line year-over-year versus 2017?

因此，我非常感謝關於下半年的評論，應該會恢復到正常水平並實現更多增長，翻一番，達到 100 千兆。但也許您可以幫助我們，只是今年的整體收入水準。到這裡，是不是已經清楚了呢？您是否預見到與 2017 年相比，您的營業收入實際​​上可以實現同比增長？

Yes. So we don't really give guidance that far out. It's still relatively early in the year. As we mentioned, I think we've seen -- we're looking at a pretty good second half. A lot of that is based on orders that we have committed, which is unusual for us to have that many committed orders this early in the year. But there's still a lot of work to do before we can confidently project what we're going to be for the whole year.

是的。所以我們實際上不會給出那麼遠的指導。今年還相對較早。正如我們所提到的，我認為我們已經看到——我們正在期待一個相當不錯的下半年。其中很大一部分是基於我們已經承諾的訂單，今年年初我們就有這麼多承諾的訂單，這對我們來說是不尋常的。但在我們能夠自信地預測全年的情況之前，還有很多工作要做。

Okay. That's helpful. I guess on inventory, again, appreciate the comments on that. I mean, you've previously thought that you'd hope to get it kind of to a normal level in the first half. And some things have changed obviously. But any thoughts on the trajectory of inventory and what that might look like a couple of quarters from now, either from a day standpoint or just an absolute kind of rough level of inventory?

好的。這很有幫助。我想關於庫存，再次感謝您對此的評論。我的意思是，您之前曾想過希望在上半年將其恢復到正常水平。有些事情顯然已經改變了。但是，對於庫存的走勢，您有什麼看法？從當天的角度還是從絕對的粗略庫存水準來看，幾個季度後庫存的走勢會是什麼樣子？

Well, I think the inventory will come down on a dollar basis. As I mentioned, we had some inventory, both in our vendor-managed inventory warehouse as well as some inventory in work in process and inventory in transit, meaning stuff that we had shipped prior to the end of the quarter, but wasn't received at the customer by the end of the quarter. So those things were the biggest source of the inventory increase over last quarter. And clearly, those things will burn down over the next quarter or 2.

嗯，我認為庫存會以美元計算下降。正如我所提到的，我們有一些庫存，既包括在我們的供應商管理庫存倉庫中，也包括一些在製品和運輸途中的庫存，這意味著我們在本季度末之前已經發貨，但在本季度末尚未送達客戶手中的物品。因此，這些因素是上個季度庫存增加的最大原因。顯然，這些東西將在未來一、兩個季度內消失。

Okay. And just kind of last one here on, just on cable. I guess it looks like maybe there was a bit of an inventory correction at your customer, a minor one. I mean, when your biggest customer reported and talked about strength in access. You obviously didn't see that in Q1, recognizing Q1 is usually kind of seasonally weak for access, that was unusual. But is your guidance contemplating that business would grow sequentially? I got the sense when you said that later this year, in September, December, you'd expect to grow year-over-year kind of looking at it from that as well.

好的。這是最後一個，僅關於有線電視。我猜想您的客戶可能進行了少量庫存調整，但幅度不大。我的意思是，當您最大的客戶報告並談論訪問優勢時。您顯然沒有在第一季看到這一點，並認識到第一季通常是季節性的訪問疲軟期，這是不尋常的。但是您的指導是否考慮到業務會持續成長？當您說今年晚些時候，也就是 9 月或 12 月，您預計銷售額將同比增長時，我感覺您也是這麼認為的。

The commentary that we had for later this year relative to cable was specifically about the Remote-PHY product that will start ramping later this year. We do expect sequential growth in cable. And it's worth mentioning, too, that part of the reason why our cable results were a little bit lower than they would have otherwise been is that we did divert some of the personnel in China that were working on cable TV products and put them on producing some of the datacenter products, again, to try to make sure that we had minimal slippage on our datacenter deliveries. So there were some cable TV orders also that we couldn't deliver in the quarter due to the manpower issues that we discussed earlier.

我們對今年稍後有關有線電視的評論是專門針對將於今年稍後開始推出的 Remote-PHY 產品。我們確實預期有線電視業務將持續成長。值得一提的是，我們的有線電視業績之所以比原本的業績略低，部分原因是我們確實調動了部分在中國從事有線電視產品的人員，讓他們生產一些數據中心產品，再次確保我們的數據中心交付出現最小的延誤。因此，由於我們之前討論過的人力問題，我們在本季也無法交付一些有線電視訂單。

Okay. And I'm sorry, I lied, one last one. Can you give any kind of qualitative sense for the mix of PSM4 versus CWDM4 sequentially? I know you don't specifically disclose. I'm just curious about the overall mix.

好的。對不起，我撒了謊，這是最後一次。您能否依序對 PSM4 與 CWDM4 的混合給予任何定性說明？我知道你沒有具體透露。我只是對整體組合感到好奇。

Yes. I mean, we continue to see a trend towards more CWDM and less PSM. I think that's been a pretty consistent theme of ours for a number of quarters. I think there's others in the industry that have said similar things. So this isn't unique to AOI. But as far as the exact percentages, as you know, we don't disclose that.

是的。我的意思是，我們繼續看到 CWDM 增多、PSM 減少的趨勢。我認為這是我們多個季度以來一直堅持的主題。我認為業內其他人也說過類似的話。所以這不是 AOI 獨有的。但就具體百分比而言，如您所知，我們不會透露。

Our next question comes from Fahad Najam from Cowen and Company.

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

But just one question on -- in terms of -- if we delve into 100 gig CWDM4 versus PSM4, can you just help us in terms of understanding, is CWDM4 a bigger portion of the mix?

但只有一個問題 - 如果我們深入研究 100 千兆 CWDM4 與 PSM4，您能否幫助我們理解，CWDM4 是否佔了更大的份額？

Well, again, we don't really break out that. What we have said is that over time we expect CWDM to continue to grow and PSM will gradually decline.

好吧，再說一次，我們並沒有真正打破這一點。我們所說的是，隨著時間的推移，我們預計 CWDM 將繼續成長，而 PSM 將逐漸下降。

Okay. Appreciate that. Then circling back to a comment that, Thompson, you had made earlier where you said that you expect the 1Q '18 to be the bottom in terms of the demand from datacenters. Can you help us understand in terms of the second half outlook, are you expecting growth from all your major cloud customers? And in particular, with this one customer that's been what, 14% of your revenue, they seem to have been declining down. Do you expect that particular cloud titan customer to start to ramp in the second half?

好的。非常感謝。然後回到湯普森你之前發表的評論，你說你預計 2018 年第一季資料中心的需求將達到最低水準。您能否幫助我們了解下半年的前景，您是否預期所有主要雲端客戶都會成長？尤其是這個客戶，他為你貢獻了 14% 的收入，而他的收入似乎一直在下降。您是否預計該特定的雲端運算巨頭客戶將在下半年開始增加業務？

Yes, Fahad, this is Stefan. As you know, I mean, we have nondisclosure agreements with our customers. We really can't talk about customer-specific issues like that. What matters to us, I think, is that in aggregate we're seeing a strong booking ledger for the second half. And as we mentioned, a lot of that is coming on the basis of contracts that we have in place. So we're fairly confident in those numbers. What the other customers are doing obviously remains to be seen. There's still some work to do to get them -- to get their numbers anyway, but it certainly is not something that we're going to break out in the call.

是的，法哈德，這是史蒂芬。如您所知，我們與客戶簽訂了保密協議。我們確實不能談論這樣的特定客戶問題。我認為，對我們來說重要的是，總體而言，我們看到下半年的預訂量強勁。正如我們所提到的，其中許多都是基於我們現有的合約。所以我們對這些數字相當有信心。其他客戶的行為顯然還有待觀察。無論如何，我們仍然需要做一些工作來獲取他們的電話號碼，但這肯定不是我們會在電話中透露的事情。

I want to add on is, you can notice, we have many design win every quarter, and we have still many new customer under qualification. We believe we can still have fair amount, a good-sized customer in this year, we think, going in. And we believe our market share in intra-datacenter will increase compared to last year.

我想補充的是，您可以注意到，我們每季都有許多設計獲勝，我們仍有許多新客戶正在等待資格審核。我們相信，今年我們仍然可以擁有相當數量的、規模較大的客戶。我們相信，與去年相比，我們在資料中心內部的市佔率將會增加。

All right. So just so I'm -- I understood, Stefan, your response and Thompson, your response. In terms of the second half outlook, you're expecting a broad-based improvement from all your cloud customers.

好的。所以，我明白了——史蒂芬，我明白你的回應，湯普森，我明白你的回應。就下半年前景而言，您預計所有雲端客戶都會出現廣泛的改善。

We're expecting a broad-based improvement, yes. You add up all the cloud-based customers together, we're expecting an improvement, yes.

是的，我們期待廣泛的改善。將所有基於雲端的客戶加在一起，我們期待有所改善，是的。

Got it. Got it. Appreciate that. And then one more, if I may. In terms of the new design wins, the 10 new design wins -- I'm sorry, the 9 new design wins, can you tell us a little bit more about these design wins? Is it with a Tier 1 NEM supplier? Are they additional cloud suppliers? Just any more qualitative insights on those new design wins.

知道了。知道了。非常感謝。如果可以的話，我再說一個。關於新設計勝利，10 個新設計勝利——抱歉，是 9 個新設計勝利，您能否向我們詳細介紹一下這些設計勝利？它是與一級 NEM 供應商合作的嗎？他們是額外的雲端供應商嗎？只是對這些新設計的成功有更多定性的見解。

It's a mix, Fahad. There's some that are datacenter operators, cloud-type datacenter operators and there's others that are OEMs. It's a good mix, which I think is important to us. I mean, one of the things that we're working very hard to do is to continue to diversify our customer base. So that means different types of products, different types of customers, different types of end markets. And so making inroads into having design wins in some cloud-type customers, but other types of customers as well is important to us. And I think we're making good progress there.

這是一種混合，法哈德。其中一些是資料中心營運商、雲端類型資料中心營運商，還有一些是原始設備製造商 (OEM)。這是一個很好的組合，我認為這對我們很重要。我的意思是，我們正在努力做的事情之一就是繼續實現客戶群的多樣化。這意味著不同類型的產品、不同類型的客戶、不同類型的終端市場。因此，爭取贏得一些雲端類型客戶以及其他類型客戶的設計勝利對我們來說也很重要。我認為我們在這方面取得了良好的進展。

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

（操作員指示）我們的下一個問題來自 Craig-Hallum Capital Group 的 Richard Shannon。

Maybe just one or kind of a two-parter here. You talked about some 9 design wins in the quarter, 5 for 100 gig. Wonder if you could tell us whether any of them are CWDM4 full spec. And if so, are any of those wins helping you with your positive outlook for the second half of the year?

這裡可能只有一部或兩部。您談到本季有 9 項設計獲勝，其中 5 項為 100G 設計。想知道您是否可以告訴我們它們是否是 CWDM4 全規格。如果是的話，這些勝利是否有助於您對下半年抱持樂觀的態度？

We do have some design wins for CWDM. And I actually don't remember off the top of my head if they were full spec or light.

我們在 CWDM 方面確實取得了一些設計勝利。而我其實不記得它們是全規格的還是輕量級的。

No, most of them are full spec.

不，大多數都是全規格的。

Full spec, I think, is correct. And as far as whether it's contributing to our positive outlook for the year, yes, absolutely. I mean, I think it's worth noting, there are some of these design wins that could be really material to revenue, either in the second half or beyond. And there's some that are certainly smaller. I don't want to oversell that all these design wins are huge ones, but there are certainly some that can be material.

我認為完整規格是正確的。至於它是否有助於我們對今年的樂觀展望，答案是肯定的。我的意思是，我認為值得注意的是，其中一些設計勝利可能會對下半年或以後的收入產生重大影響。其中一些確實更小。我不想過度誇大這些設計上的勝利都是巨大的，但肯定有一些是實質的。

Okay. That's helpful. And one last question for me. I got to jump off to another earnings call. Wonder if you can discuss the opportunities you're seeing with the large China cloud operators. It's a customer base that hasn't existed with you at least in volume today, but seems like it could be an opportunity. Wonder if you could discuss what you're seeing there.

好的。這很有幫助。最後一個問題。我得去參加另一個收益電話會議了。想知道您是否可以與中國大型雲端運算營運商討論您所看到的機會。這是一個目前尚不存在的客戶群，至少在數量上是這樣，但這似乎是一個機會。不知道您是否可以討論一下您在那裡看到的東西。

Yes. We think we're making pretty good inroads into the China operators. I mean, by and large, those China cloud operators are smaller in scale than certainly many of the cloud titans that are sort of our traditional customer base. So we're making good inroads. I think we had a number of design wins and some design win activity that's still ongoing but is looking very good. But again, compared to our large cloud titans, most of those Chinese companies are somewhat smaller in scale.

是的。我們認為我們在進軍中國營運商市場方面取得了相當大的進展。我的意思是，總的來說，這些中國雲端營運商的規模肯定比我們傳統客戶群的許多雲端巨頭還要小。因此，我們正在取得良好進展。我認為我們已經贏得了許多設計勝利，並且一些設計勝利活動仍在進行中，但看起來非常好。但與我們的大型雲端運算巨頭相比，大多數中國公司的規模都比較小。

And our next question is a follow-up from James Kisner from Loop Capital.

我們的下一個問題是來自 Loop Capital 的 James Kisner 的後續問題。

So on 40 gig, can you just give us an updated perspective on kind of how fast that rolls off? Is it just -- should be kind of taking revenue out of that 40 gig bucket and we put it in the 100 gig or is there maybe kind of a longer tailwind? Just any kind of context around how we should model 40 gig would be helpful.

那麼，關於 40Gig，您能否給我們一個關於其發展速度的最新觀點？這是否只是——應該從 40 千兆位元組的桶中拿出收入，然後將其放入 100 千兆位元組中，或者是否有更長的順風期？關於我們應該如何建模 40Gig 的任何背景資訊都會有所幫助。

Well, I can't go too much into more detail than what we've already said. We think it will decline. What's going on is that it's a little bit customer-specific. That is, we have some customers that are already transitioned virtually 100% to 100 gig. We have other customers that are continuing to use 40 gig. I think it's probably fair to say that if you look back, say, a year ago or so, that 40 gig is probably hanging in there a little stronger than we would have thought at that time. But again, it's kind of customer-specific. It's not across the board. 40 gig is important to some customers and less important to others.

好吧，我不能再詳細地談論我們已經說過的內容了。我們認為它將會下降。實際情況是，它有點針對客戶。也就是說，我們的一些客戶已經幾乎 100% 過渡到 100G。我們還有其他客戶正在繼續使用 40 千兆。我認為可以公平地說，如果你回顧一下，比如說，一年前，那麼 40 演出可能比我們當時想像的要強勁一些。但同樣，這是針對特定客戶的。這並不是全面的。40Gig 對某些客戶來說很重要，但對其他客戶來說則不那麼重要。

And ladies and gentlemen, at this time, this will conclude today's question-and-answer session. I'd like to turn the conference call back over to Dr. Thompson Lin for any closing remarks.

女士們、先生們，今天的問答環節到此結束。我想將電話會議交還給 Thompson Lin 博士，請他做最後發言。

Again, thank you for joining us today. As always, we thank our investors, customers and employees for your continued support, and we look forward to seeing you at our upcoming conference.

再次感謝您今天加入我們。像往常一樣，我們感謝投資者、客戶和員工的持續支持，並期待在即將舉行的會議上見到您。

Ladies and gentlemen, the conference has now concluded. We do thank you for joining today's presentation. You may now disconnect your lines.

女士們、先生們，會議現已結束。我們非常感謝您參加今天的演講。現在您可以斷開線路了。