祥茂光電 (AAOI) 2018 Q1 法說會逐字稿

Good afternoon.

下午好。

My name is Jaime, and I will be your conference operator today.

我叫 Jaime，今天我將擔任你們的會議接線員。

At this time, I would like to welcome everyone to Applied Optoelectronics' First Quarter 2018 Earnings Conference Call.

在此，歡迎大家參加應用光電2018年第一季度財報電話會議。

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

（操作員說明）另請注意，今天的活動正在錄製中。

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

此時，我想將電話會議轉交給 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.

謝謝你。

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.

我是 Applied Optoelectronics 投資者關係部的 Maria Riley，很高興歡迎您參加 AOI 2018 年第一季度財務業績電話會議。

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.

今天收盤後，AOI 發布了一份新聞稿，公佈了其 2018 年第一季度的業績，並提供了 2018 年第二季度的展望。

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

該新聞稿也可在公司網站 ao-inc.com 上獲取。

This call is being recorded and webcast live.

此通話正在錄音和網絡直播中。

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

該錄音的鏈接可在 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.

與我們一起參加今天電話會議的還有 AOI 的創始人、董事長兼首席執行官 Thompson Lin 博士；以及 AOI 的首席財務官兼首席戰略官 Stefan Murry 博士。

Thompson will give an overview of AOI's Q1 results, and Stefan will provide financial details and the outlook for the second quarter of 2018.

Thompson 將概述 AOI 第一季度的業績，Stefan 將提供財務細節和 2018 年第二季度的展望。

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

問答環節將遵循我們準備好的評論。

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

在我們開始之前，我想提醒您閱讀 AOI 的安全港聲明。

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

在今天的電話會議上，管理層將發表前瞻性陳述。

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預期的結果存在重大差異。

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

您可以通過可能、將、應該、期望、計劃、預期、相信或估計等術語以及其他類似表達來識別前瞻性陳述。

Except as required by law, we assume no obligation to update forward-looking statements for any reason after the date of this earnings call to conform these statements to actual results or to changes in the company's expectations.

除非法律要求，否則我們沒有義務在本次財報電話會議之後以任何理由更新前瞻性陳述，以使這些陳述符合實際結果或公司預期的變化。

More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC.

有關可能影響公司業務的其他風險的更多信息，請參見公司提交給美國證券交易委員會的報告的風險因素部分。

Also, with the exception of revenue, all financial numbers discussed today are on a non-GAAP basis, unless specifically noted otherwise.

此外，除收入外，今天討論的所有財務數據均基於非 GAAP 基礎，除非另有特別說明。

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

非 GAAP 財務措施不應孤立地考慮或替代根據 GAAP 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 措施之間的協調以及對我們為什麼提出非 GAAP 財務措施的討論包含在我們網站上提供的收益新聞稿中。

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.

在談到財務業績之前，我想宣布 AOI 管理層將於 5 月 30 日出席在紐約舉行的 Cowen 技術、媒體和電信會議。

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

我們希望有機會在那裡見到你們中的許多人。

Additionally, I'd like to note the date of our second quarter 2018 earnings call is currently scheduled for Tuesday, August 7, 2018.

此外，我想指出我們 2018 年第二季度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.

現在我想把電話轉給 Applied Optoelectronics 的創始人、董事長兼首席執行官 Thompson Lin 博士。

Thompson?

湯普森？

Thank you, Maria.

謝謝你，瑪麗亞。

Good afternoon, everyone, and thank you for joining us today and reviewing our first quarter results.

大家下午好，感謝您今天加入我們並回顧我們的第一季度業績。

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.

AOI 實現了 6520 萬美元的收入和 40% 的毛利率，這導致淨收入為 560 萬美元或每股攤薄收益 0.28 美元。

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.

由於農曆新年導致我們中國工廠的員工流動率高於預期，某些訂單的交付推遲到第二季度，我們的收入略低於我們的指導。

This order had been shipped in Q2.

該訂單已在第二季度發貨。

On a more positive note, market trend were in line with our expectations.

從更積極的方面來看，市場趨勢符合我們的預期。

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.

我們無法相信第一季度我們預測了過去幾個季度數據中心需求下降的模式。

Datacenter inventory condition has begun to normalize with our expectation being that inventory will return to more normal level later this year.

數據中心庫存狀況已開始正常化，我們預計庫存將在今年晚些時候恢復到更正常的水平。

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.

我們目前還預計，隨著我們交付上季度宣布的承諾訂單，今年下半年 100G 的銷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.

我們還在客戶群多元化方面取得了良好進展，贏得了 9 項設計，其中 5 項是我們的 100G 產品。

And some of this design wins were with new customers.

其中一些設計贏得了新客戶。

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.

為了滿足客戶的需求，AOI 將繼續在新產品開發以及製造過程中的先進自動化方面進行創新。

Our recently announced 200G PAM4 PIN photodiode array is a great example.

我們最近發布的 200G PAM4 PIN 光電二極管陣列就是一個很好的例子。

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.

憑藉這項新技術，AOI 現在控制了激光器和光電二極管陣列的生產，這是生產 200G 和 400G 收發器所需的最關鍵和最昂貴的組件。

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.

我們相信，我們的持續創新、垂直整合和專有製造工藝共同使 AOI 在這個競爭激烈的行業中成為成本和質量領先者，從我們的競爭對手中脫穎而出。

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

有了這個，我將把電話轉給 Stefan，向您詳細介紹我們第一季度的業績和第二季度的前景。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

Total revenue for the first quarter was $65.2 million compared with $96.2 million reported in Q1 last year.

第一季度的總收入為 6520 萬美元，而去年第一季度報告的收入為 9620 萬美元。

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.

正如 Thompson 提到的，由於我們在中國工廠的員工流動率高於預期，因此一些訂單的完成略有延遲，我們的收入低於預期。

As you may know, many of our products are manufactured in our Ningbo, China factory, which experiences a shutdown during the Lunar New Year.

如您所知，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。

After the holiday, it is typical for some employees to fail to return to the factory on time or at all.

假期過後，一些員工不能按時或根本不返廠的情況很典型。

This can affect our ability to produce sufficient products to meet our demand, which was the case this quarter.

這可能會影響我們生產足夠產品以滿足需求的能力，本季度就是這種情況。

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.

我們能夠在寧波招聘到所需的額外員工，但由於我們需要招聘和培訓比平時更多的員工，讓這些新員工全面投入生產的過程比預期的要長，一些訂單被推遲了結果。

We worked closely with our customers to avoid any impact on them from these delays, which were only a few days in duration.

我們與客戶密切合作，避免這些延誤對他們造成任何影響，這些延誤只有幾天的時間。

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.

展望未來，正如 Thompson 所說，我們相信 2018 年下半年我們 100G 產品的單位銷售額將比上半年增長一倍以上。

This estimate is based largely on the committed orders we announced last quarter.

這一估計主要基於我們上個季度宣布的承諾訂單。

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.

雖然今年隨著銷量的增加會有一些降價，但我們認為這段時間的降價百分比將低於去年。

In Q1, our datacenter revenue came in at $50.6 million compared with $79.6 million in Q1 of last year.

第一季度，我們的數據中心收入為 5060 萬美元，而去年第一季度為 7960 萬美元。

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.

本季度，我們數據中心收入的 41% 來自我們的 100G 收發器產品，而上一季度這一比例為 35%，53% 來自我們的 40G 產品。

We continue to maintain focus on diversifying our customer base and in the quarter had 9 design wins, including 5 for our 100G products.

我們繼續專注於使我們的客戶群多樣化，本季度贏得了 9 項設計，其中 5 項是我們的 100G 產品。

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.

我們相信，我們的成本領先地位、可擴展的生產能力、內部組件供應和創新記錄將使我們能夠在這些客戶參與中取得成功。

As Thompson mentioned, AOI continues to innovate and expand our product portfolio.

正如 Thompson 提到的，AOI 不斷創新並擴展我們的產品組合。

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.

我們最近宣布開發 200G PAM4 PIN 光電二極管陣列，可用於生產基於 50G/lambda 技術的 200G 和 400G 收發器。

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.

隨著這項新技術的發展，AOI 現在可以製造內部生產 200G 和 400G 收發器所需的 2 個最昂貴的組件，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.

關於我們當前 100G 產品的成本降低，在第一季度，AOI 成功地將我們 CWDM 數據中心收發器中使用的大部分光多路復用器轉換為內部生產的部件。

By the end of Q3, we expect the majority of the demultiplexers to be sourced internally as well.

到第三季度末，我們預計大多數解復用器也將在內部採購。

Together, the multiplexer and demultiplexer pair represents the second-highest cost material in our CWDM modules, just behind the active optical components.

多路復用器和多路分解器對共同代表了我們 CWDM 模塊中成本第二高的材料，僅次於有源光學元件。

By transitioning these to in-house produced parts, we are realizing significant cost reduction on these high-value components.

通過將這些零件轉變為內部生產的零件，我們實現了這些高價值零件的顯著成本降低。

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.

這延續了我們的垂直整合戰略，因為我們現在已經在第三季度將激光器、光電二極管和 MUX 與 DeMUX 一起引入內部。

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.

通過在內部引入這些組件為我們提供的成本優勢、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.

在 OFC，我們展示了我們的全套下一代技術，包括我們的 200 和 400G 收發器產品以及 100G EML 和 DML 激光器。

And we are very encouraged by the customer response.

我們對客戶的反應感到非常鼓舞。

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.

我們還在 OFC 投資者會議期間討論了我們新的 400G 高密度光引擎組件，它將我們的 40G 和 100G 平台擴展到 400G。

We expect to leverage this mature, high-quality and low-cost platform for years to come.

我們希望在未來幾年內利用這個成熟、高質量和低成本的平台。

Turning to our cable television market.

轉向我們的有線電視市場。

We generated revenue of $10.6 million compared with the unusually strong $13.1 million that we generated in Q1 of last year.

與去年第一季度異常強勁的 1310 萬美元相比，我們的收入為 1060 萬美元。

Looking ahead, we continue to anticipate growth in this market, especially as demand for Remote-PHY picks up later this year.

展望未來，我們繼續預計該市場的增長，特別是隨著今年晚些時候對 Remote-PHY 的需求回升。

Our telecom products delivered revenue of $3.6 million compared with $3.2 million in Q1 of last year.

我們的電信產品實現了 360 萬美元的收入，而去年第一季度為 320 萬美元。

For the quarter, 78% of our revenue was from datacenter products, 16% from CATV products with the remaining 6% from FTTH, telecom and other.

本季度，我們 78% 的收入來自數據中心產品，16% 來自 CATV 產品，其餘 6% 來自 FTTH、電信和其他。

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.

第一季度，我們在數據中心業務中擁有 3 個 10% 或更高的客戶，分別貢獻了總收入的 36%、26% 和 14%。

Moving beyond revenue.

超越收入。

We generated a gross margin of 40%, which represents a decrease of 100 basis points compared with the 41% reported last quarter.

我們的毛利率為 40%，與上一季度報告的 41% 相比下降了 100 個基點。

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.

我們的毛利率略低於我們的預期，原因是春節期間產能利用率不足以及寧波培訓新員工的成本高於預期。

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.

本季度總運營費用為 2010 萬美元，佔收入的 30.8%，上一季度為 1890 萬美元，佔收入的 23.7%。

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.

環比增長主要是由於研發費用增加，因為我們投資於新的生產技術，這將進一步降低我們的收發器產品以及 200G、400G 和 Remote-PHY 產品的成本。

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.

提醒一下，我們預計未來幾個季度的研發將保持在這個水平，同時我們將精力集中在這些舉措上。

Operating income in Q1 was $6 million compared with operating income of $13.8 million in Q4 of 2017.

第一季度的營業收入為 600 萬美元，而 2017 年第四季度的營業收入為 1380 萬美元。

Our operating margin in the quarter was 9.2% compared with the 17.3% reported in Q4 of 2017.

我們本季度的營業利潤率為 9.2%，而 2017 年第四季度報告的營業利潤率為 17.3%。

During the quarter, we had a larger-than-expected foreign exchange loss associated with the settlement of intercompany accounts receivable balances.

本季度，我們在結算公司間應收賬款餘額方面出現了大於預期的匯兌損失。

This negatively impacted our non-GAAP income by approximately $1.2 million.

這對我們的非 GAAP 收入產生了大約 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.

第一季度的非 GAAP 稅後淨收入為 560 萬美元或攤薄後每股收益 0.28 美元，而 2017 年第一季度為 2180 萬美元或攤薄後每股收益 1.10 美元。

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.

第一季度的 GAAP 淨收入為 210 萬美元或稀釋後每股收益 0.11 美元，而去年第一季度的 GAAP 淨收入為 1980 萬美元或稀釋後每股收益 1 美元。

The Q1 weighted average fully diluted share count was approximately 20 million shares.

第一季度的加權平均完全稀釋股數約為 2000 萬股。

We recognized approximately $0.3 million in tax benefit from employee options that were exercised during the quarter.

我們從本季度行使的員工期權中確認了大約 30 萬美元的稅收優惠。

Turning now to the balance sheet.

現在轉向資產負債表。

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.

第一季度末，我們的現金、現金等價物、短期投資和受限制現金總額為 8330 萬美元，而上一季度末為 8400 萬美元。

As of March 31, we had $92.6 million in inventory, an increase of $16.9 million from Q4.

截至 3 月 31 日，我們的庫存為 9260 萬美元，比第四季度增加了 1690 萬美元。

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.

庫存增加主要是由於我們為第二季度和下半年的預期需求做準備而導致在製品增加。

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.

本季度我們的資本投資總額為 970 萬美元，其中 750 萬美元用於生產設備和機械，210 萬美元用於建築和建築改造。

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.

我們繼續預計 2018 年的資本支出將接近 1.09 億美元，與去年相比，我們在中國新工廠的建設佔支出增加的大部分。

Moving now to our Q2 outlook.

現在轉到我們的第二季度展望。

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%.

我們預計第二季度收入將在 7500 萬美元至 8100 萬美元之間，非 GAAP 毛利率將在 39.5% 至 41% 之間。

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.

非 GAAP 淨收入預計在 780 萬美元至 1,040 萬美元之間，非 GAAP 每股收益預計在每股 0.39 美元至 0.52 美元之間，使用加權平均完全稀釋後的股份數約為 2,000 萬股。

We expect our Q2 effective tax rate on our non-GAAP net income to be between 7% and 12%.

我們預計第二季度非公認會計原則淨收入的有效稅率將在 7% 至 12% 之間。

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

有了這個，我會把它轉回給接線員進行問答環節。

Operator?

操作員？

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

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

A couple of things I wanted to check on.

我想檢查幾件事。

One was, from a longer-term perspective, I think you've given guidance for gross margin in a range of 41% to 45%.

一是，從更長期的角度來看，我認為您已經給出了 41% 至 45% 的毛利率指導。

You're guiding a little bit below that for the June quarter.

您對 6 月季度的指導略低於該水平。

And I know this is one of the questions we get a lot given the Facebook commitment, worry about gross margin.

我知道鑑於 Facebook 的承諾，這是我們經常收到的問題之一，擔心毛利率。

Could you talk about the longer-term gross margin trend?

你能談談長期毛利率趨勢嗎？

Yes, Simon.

是的，西蒙。

I think we still believe that we can, in the longer term, maintain that 41-plus percent gross margin.

我認為我們仍然相信，從長遠來看，我們可以保持 41% 以上的毛利率。

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.

目前影響我們的部分原因是，我們必須在年底和第一季度購買一些庫存，其成本略高於我們預期的長期庫存水平。

So that's pulling down the gross margin a little bit in this quarter and in Q2.

因此，這在本季度和第二季度略微拉低了毛利率。

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.

正如我們在電話會議中提到的，另一件事是我們將在內部引入許多組件。

For example, we talked about the multiplexer and demultiplexer pair as well as the photodiode.

例如，我們談到了復用器和解復用器對以及光電二極管。

And those components will also help us to reduce costs.

這些組件也將幫助我們降低成本。

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.

所以我們確實認為我們可以回到 41% 的範圍，但我們還有一些工作要做才能到達那裡。

Okay.

好的。

And could you quantify how much or can you quantify how much revenue has slid from the March quarter into June?

您能否量化從 3 月季度到 6 月的收入下滑了多少或可以量化多少？

I'm just wondering why given the timing issues with what happened in March why the June outlook wasn't a little bit better.

我只是想知道為什麼考慮到 3 月份發生的事情的時間問題，為什麼 6 月份的前景不會好一點。

Well, as we noted in the remarks, it's just a couple of days' worth of production.

好吧，正如我們在評論中指出的那樣，這只是幾天的生產量。

So basically, you could take our sort of average daily production and tack on 2 or 3 days to that.

所以基本上，你可以採用我們的平均日產量，並在 2 或 3 天內完成。

And that was the size of the slip.

那就是單據的大小。

It was not that much.

沒那麼多。

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.

我們在本季度有大量訂單，但由於我們在農曆新年期間談到的人事問題，我們無法全部發貨。

Okay.

好的。

And one last one.

還有最後一個。

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.

Arista 在上週的財報電話會議和昨天的分析師會議上表示，它認為 100 gig 光收發器市場現在供應充足。

And it wasn't clear what exactly they were alluding to.

目前尚不清楚他們到底在暗示什麼。

Given your 100 gig shipments, it doesn't seem as if you've opened up the floodgates.

考慮到您的 100 gig 出貨量，您似乎並沒有打開閘門。

I'm just wondering what you're seeing in terms of the marketplace of new capacity, competitive landscape.

我只是想知道您在新容量市場和競爭格局方面看到了什麼。

Yes.

是的。

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.

我的意思是，我們會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。

I think we mentioned earlier that we expect the second half to be a pretty strong second half to the year.

我想我們之前提到過，我們預計下半年將是今年下半年相當強勁的下半年。

So we're certainly preparing to meet that demand.

所以我們當然準備滿足這一需求。

I don't know if that answered your entire question there, Simon, but...

我不知道這是否回答了你的整個問題，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.

好吧，任何關於競爭格局的評論都是因為聽取了供應鏈的意見，例如 Fabrinet，我們不清楚大量新供應可能來自哪裡。

And so I'm not seeing it.

所以我沒有看到它。

I'm just wondering what you're seeing in terms of supply from your competitors.

我只是想知道您在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.

我的意思是，我認為有很好的證據表明我們的一些競爭對手要么已經退出市場，要么正在改變他們攻擊市場的方式。

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.

所以從這個角度來看，我認為我們看到的最大變化是那些競爭對手，他們中的大多數人首先與大生產商合作，但他們基本上正在改變他們的戰略或完全退出。

Whereas AOI has been the cost leader in this market.

而 AOI 一直是該市場的成本領導者。

I think we continue to believe that we are the cost leader.

我認為我們仍然相信我們是成本領先者。

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.

正如我們在評論中提到的，我認為從長遠來看，這就是我們繼續贏得這些客戶參與所需要的。

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

我們的下一個問題來自 D.A. 的 Mark Kelleher。戴維森。

Just a follow-up on that last thought there.

只是對那裡最後一個想法的跟進。

Let me ask in a different way.

讓我換個方式問。

Are you seeing any change?

你看到任何變化了嗎？

A couple have exited, but there are a couple that are still in the market very aggressively pricing.

一對夫婦已經退出，但仍有一對夫婦在市場上非常積極地定價。

Have you seen any change in that pricing dynamic?

您是否看到定價動態有任何變化？

No, I don't think so.

不，我不這麼認為。

I mean, look, our prices are generally negotiated well in advance.

我的意思是，看，我們的價格通常是提前協商好的。

So we think we have a pretty good handle on what the prices are going to be in the future.

所以我們認為我們對未來的價格有很好的把握。

And we haven't seen anything in the pricing dynamic that's meaningfully changed from what it was before.

而且我們還沒有看到定價動態中的任何內容與以前相比發生了有意義的變化。

Okay.

好的。

And on those personnel issues that you encountered on the Chinese New Year, is that something that caught you by surprise?

而你在春節遇到的那些人事問題，有沒有讓你感到意外的？

Is that something unusual?

這有什麼不尋常的嗎？

Is that something we should anticipate each March quarter?

這是我們應該在每個 3 月季度預期的事情嗎？

How odd was that, that you had that problem?

你有那個問題有多奇怪？

Well, I think anybody that produces product in China has issues surrounding the Chinese New Year.

好吧，我認為在中國生產產品的任何人都對中國新年有疑問。

That is, there's typically factory shutdowns and there's personnel turnover around that time.

也就是說，通常會出現工廠停工和人員流動的情況。

That's definitely not unique to us.

這絕對不是我們獨有的。

And it's something that we experience every first quarter.

這是我們每個第一季度都會經歷的事情。

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.

我們要做的是估計有多少員工會回來，哪些員工，我們需要雇用多少人等等。

And obviously, this year, we were off by a little more than we expected.

顯然，今年，我們的偏差比我們預期的要多一點。

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.

但我認為值得一提的是，在過去幾年中，我們在添加自動化和其他方面取得瞭如此大的進步。

If you go back a few years, we had a much larger problem in the first quarter, again, related to Chinese New Year.

如果你回到幾年前，我們在第一季度遇到了一個更大的問題，同樣與農曆新年有關。

This year, while there was some slip, it was relatively minor compared to what we've seen in years past.

今年，雖然有一些下滑，但與我們過去幾年所看到的相比，它相對較小。

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.

我們這樣做的方式是提高自動化程度，這樣我們就可以重新培訓和重新僱用更多的工人，讓他們更快地達到全生產力。

It's also worth noting that this year, the Chinese New Year was a little later in the year than it sometimes is.

還值得注意的是，今年的農曆新年比往年晚了一點。

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.

這也讓我們更難讓員工上門，讓他們全速前進，並且仍然能夠在本季度末發貨。

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.

所以我真的很感謝關於下半年的評論，應該會恢復到正常水平並且會有更多的增長，100 演出翻倍。

But maybe you'd help us, just the overall revenue level for the year.

但也許你會幫助我們，只是今年的整體收入水平。

At this point, is it clear?

至此，清楚了嗎？

Do you have visibility that you could actually grow your top line year-over-year versus 2017?

您是否知道與 2017 年相比，您實際上可以同比增長您的收入？

Yes.

是的。

So we don't really give guidance that far out.

所以我們並沒有真正給出那麼遠的指導。

It's still relatively early in the year.

今年還比較早。

As we mentioned, I think we've seen -- we're looking at a pretty good second half.

正如我們所提到的，我認為我們已經看到 - 我們正在尋找一個非常好的下半年。

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.

其中很多是基於我們已經承諾的訂單，這對我們來說在今年年初有那麼多已承諾的訂單是不尋常的。

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.

但是，在我們自信地預測全年的目標之前，還有很多工作要做。

Okay.

好的。

That's helpful.

這很有幫助。

I guess on inventory, again, appreciate the comments on that.

我想在庫存方面，再次感謝對此的評論。

I mean, you've previously thought that you'd hope to get it kind of to a normal level in the first half.

我的意思是，您之前曾認為您希望在上半年將其恢復到正常水平。

And some things have changed obviously.

有些事情已經發生了明顯的變化。

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?

但是關於庫存軌蹟的任何想法以及從現在開始的幾個季度可能會是什麼樣子，無論是從一天的角度還是只是一種絕對粗略的庫存水平？

Well, I think the inventory will come down on a dollar basis.

好吧，我認為庫存會以美元為基礎下降。

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.

正如我提到的，我們有一些庫存，既有在我們供應商管理的庫存倉庫中，也有一些在製品庫存和在途庫存，這意味著我們在本季度末之前發貨但沒有收到的東西在本季度末到達客戶處。

So those things were the biggest source of the inventory increase over last quarter.

所以這些東西是上個季度庫存增加的最大來源。

And clearly, those things will burn down over the next quarter or 2.

很明顯，這些東西將在下一個或第二個季度燒毀。

Okay.

好的。

And just kind of last one here on, just on cable.

只是這裡的最後一個，就在電纜上。

I guess it looks like maybe there was a bit of an inventory correction at your customer, a minor one.

我想看起來您的客戶可能有一些庫存修正，一個小的修正。

I mean, when your biggest customer reported and talked about strength in access.

我的意思是，當您最大的客戶報告並談論訪問方面的優勢時。

You obviously didn't see that in Q1, recognizing Q1 is usually kind of seasonally weak for access, that was unusual.

你顯然沒有在第一季度看到這一點，認識到第一季度通常在訪問方面有點季節性疲軟，這是不尋常的。

But is your guidance contemplating that business would grow sequentially?

但是您的指導是否考慮到業務會連續增長？

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.

當你在今年晚些時候，9 月，12 月說的時候，我明白了，你也希望從中看到同比增長。

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.

我們今年晚些時候對電纜的評論專門針對將於今年晚些時候開始量產的 Remote-PHY 產品。

We do expect sequential growth in cable.

我們確實預計電纜會出現連續增長。

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.

同樣值得一提的是，我們的有線電視結果比原本要低一點的部分原因是我們確實轉移了一些在中國從事有線電視產品工作的人員，並將他們投入生產一些數據中心產品，再次嘗試確保我們的數據中心交付有最小的延誤。

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.

因此，由於我們之前討論的人力問題，我們也無法在本季度交付一些有線電視訂單。

Okay.

好的。

And I'm sorry, I lied, one last one.

對不起，我撒謊了，最後一個。

Can you give any kind of qualitative sense for the mix of PSM4 versus CWDM4 sequentially?

您能否按順序對 PSM4 與 CWDM4 的混合給出任何定性意義？

I know you don't specifically disclose.

我知道你沒有具體透露。

I'm just curious about the overall mix.

我只是對整體組合感到好奇。

Yes.

是的。

I mean, we continue to see a trend towards more CWDM and less PSM.

我的意思是，我們繼續看到更多 CWDM 和更少 PSM 的趨勢。

I think that's been a pretty consistent theme of ours for a number of quarters.

我認為這是我們多個季度的一個非常一致的主題。

I think there's others in the industry that have said similar things.

我認為業內其他人也說過類似的話。

So this isn't unique to AOI.

所以這不是 AOI 獨有的。

But as far as the exact percentages, as you know, we don't disclose that.

但就確切的百分比而言，如你所知，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 - 就 - 如果我們深入研究 100 gig CWDM4 與 PSM4，你能否幫助我們理解，CWDM4 是否在混合中佔據更大的份額？

Well, again, we don't really break out that.

好吧，再一次，我們並沒有真正打破這一點。

What we have said is that over time we expect CWDM to continue to grow and PSM will gradually decline.

我們所說的是，隨著時間的推移，我們預計 CWDM 將繼續增長，而 PSM 將逐漸下降。

Okay.

好的。

Appreciate that.

感謝。

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.

然後回到湯普森的評論，你之前說過你預計 18 年第一季度數據中心的需求將達到最低點。

Can you help us understand in terms of the second half outlook, are you expecting growth from all your major cloud customers?

您能否幫助我們了解下半年的前景，您是否期待所有主要雲客戶的增長？

And in particular, with this one customer that's been what, 14% of your revenue, they seem to have been declining down.

特別是，對於這個佔你收入 14% 的客戶，他們似乎一直在下降。

Do you expect that particular cloud titan customer to start to ramp in the second half?

您是否希望特定的雲巨頭客戶在下半年開始增加？

Yes, Fahad, this is Stefan.

是的，Fahad，這是 Stefan。

As you know, I mean, we have nondisclosure agreements with our customers.

如您所知，我的意思是，我們與客戶簽訂了保密協議。

We really can't talk about customer-specific issues like that.

我們真的不能談論這樣的客戶特定問題。

What matters to us, I think, is that in aggregate we're seeing a strong booking ledger for the second half.

我認為，對我們來說重要的是，總的來說，我們看到下半年的預訂分類賬很強勁。

And as we mentioned, a lot of that is coming on the basis of contracts that we have in place.

正如我們所提到的，其中很多都是基於我們現有的合同。

So we're fairly confident in those numbers.

所以我們對這些數字相當有信心。

What the other customers are doing obviously remains to be seen.

其他客戶在做什麼顯然還有待觀察。

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.

要獲得他們還有一些工作要做——無論如何要獲得他們的電話號碼，但這肯定不是我們要在電話會議中爆發的事情。

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.

我想補充的是，你可以注意到，我們每個季度都有很多設計獲勝，而且我們還有很多新客戶正在獲得資格。

We believe we can still have fair amount, a good-sized customer in this year, we think, going in.

我們認為，我們認為今年我們仍然可以擁有相當數量的大型客戶。

And we believe our market share in intra-datacenter will increase compared to last year.

我們相信我們在內部數據中心的市場份額將比去年增加。

All right.

好的。

So just so I'm -- I understood, Stefan, your response and Thompson, your response.

所以我只是 - 我明白了，Stefan，你的回應和 Thompson，你的回應。

In terms of the second half outlook, you're expecting a broad-based improvement from all your cloud customers.

就下半年的前景而言，您期望所有云客戶都有廣泛的改進。

We're expecting a broad-based improvement, yes.

是的，我們期待基礎廣泛的改進。

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

您將所有基於雲的客戶加在一起，我們期待改進，是的。

Got it.

知道了。

Got it.

知道了。

Appreciate that.

感謝。

And then one more, if I may.

如果可以的話，再來一個。

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?

就新設計獲勝而言，10 個新設計獲勝——對不起，9 個新設計獲勝，你能告訴我們更多關於這些設計獲勝的信息嗎？

Is it with a Tier 1 NEM supplier?

是否與一級 NEM 供應商合作？

Are they additional cloud suppliers?

他們是額外的雲供應商嗎？

Just any more qualitative insights on those new design wins.

關於這些新設計獲勝的更多定性見解。

It's a mix, Fahad.

這是一個混合體，法赫德。

There's some that are datacenter operators, cloud-type datacenter operators and there's others that are OEMs.

有一些是數據中心運營商、雲類型數據中心運營商，還有一些是 OEM。

It's a good mix, which I think is important to us.

這是一個很好的組合，我認為這對我們很重要。

I mean, one of the things that we're working very hard to do is to continue to diversify our customer base.

我的意思是，我們正在努力做的事情之一就是繼續使我們的客戶群多樣化。

So that means different types of products, different types of customers, different types of end markets.

因此，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。

And so making inroads into having design wins in some cloud-type customers, but other types of customers as well is important to us.

因此，在某些雲類型客戶中取得設計勝利對我們來說很重要，但其他類型的客戶也很重要。

And I think we're making good progress there.

我認為我們在那裡取得了很好的進展。

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

（操作員說明）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.

也許這裡只是一個或兩個部分。

You talked about some 9 design wins in the quarter, 5 for 100 gig.

你談到本季度大約有 9 項設計獲勝，其中 5 項是 100 次演出。

Wonder if you could tell us whether any of them are CWDM4 full spec.

想知道您是否可以告訴我們其中是否有 CWDM4 完整規格。

And if so, are any of those wins helping you with your positive outlook for the second half of the year?

如果是這樣，這些勝利是否有助於您對今年下半年的積極展望？

We do have some design wins for CWDM.

我們確實在 CWDM 方面取得了一些設計勝利。

And I actually don't remember off the top of my head if they were full spec or light.

而且我實際上不記得它們是全規格還是輕型。

No, most of them are full spec.

不，他們中的大多數都是全規格的。

Full spec, I think, is correct.

我認為完整規格是正確的。

And as far as whether it's contributing to our positive outlook for the year, yes, absolutely.

至於它是否有助於我們今年的積極前景，是的，絕對是。

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.

我的意思是，我認為值得注意的是，其中一些設計勝利可能對下半年或以後的收入產生重大影響。

And there's some that are certainly smaller.

還有一些肯定更小。

I don't want to oversell that all these design wins are huge ones, but there are certainly some that can be material.

我不想誇大所有這些設計勝利都是巨大的勝利，但肯定有一些可能是物質的。

Okay.

好的。

That's helpful.

這很有幫助。

And one last question for me.

最後一個問題問我。

I got to jump off to another earnings call.

我得跳到另一個財報電話會議上。

Wonder if you can discuss the opportunities you're seeing with the large China cloud operators.

想知道您是否可以與中國大型雲運營商討論您所看到的機會。

It's a customer base that hasn't existed with you at least in volume today, but seems like it could be an opportunity.

這個客戶群至少在今天還不存在，但看起來這可能是一個機會。

Wonder if you could discuss what you're seeing there.

想知道您是否可以討論您在那裡看到的內容。

Yes.

是的。

We think we're making pretty good inroads into the China operators.

我們認為我們正在很好地打入中國運營商。

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.

我的意思是，總的來說，那些中國雲運營商的規模肯定比我們傳統客戶群中的許多雲巨頭要小。

So we're making good inroads.

所以我們正在取得很好的進展。

I think we had a number of design wins and some design win activity that's still ongoing but is looking very good.

我認為我們有一些設計獲勝和一些設計獲勝活動仍在進行中，但看起來非常好。

But again, compared to our large cloud titans, most of those Chinese companies are somewhat smaller in scale.

但同樣，與我們的大型雲巨頭相比，這些中國公司中的大多數規模都較小。

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 的跟進。

So on 40 gig, can you just give us an updated perspective on kind of how fast that rolls off?

那麼在 40 場演出中，你能給我們一個更新的觀點，說明它的發展速度有多快嗎？

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?

只是——應該從 40 場演出中拿出收入，然後我們把它放在 100 場演出中，或者是否有更長的順風？

Just any kind of context around how we should model 40 gig would be helpful.

關於我們應該如何為 40 gig 建模的任何類型的上下文都會有所幫助。

Well, I can't go too much into more detail than what we've already said.

好吧，除了我們已經說過的內容，我不能說得太多了。

We think it will decline.

我們認為它會下降。

What's going on is that it's a little bit customer-specific.

發生的事情是它有點特定於客戶。

That is, we have some customers that are already transitioned virtually 100% to 100 gig.

也就是說，我們有一些客戶已經幾乎 100% 過渡到 100 gig。

We have other customers that are continuing to use 40 gig.

我們還有其他客戶繼續使用 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.

我認為可以公平地說，如果你回顧一下，比如說，大約一年前，那 40 場演出可能比我們當時想像的要強一些。

But again, it's kind of customer-specific.

但同樣，它是特定於客戶的。

It's not across the board.

這不是全面的。

40 gig is important to some customers and less important to others.

40 gig 對某些客戶很重要，而對其他客戶則不太重要。

And ladies and gentlemen, at this time, this will conclude today's question-and-answer session.

女士們先生們，今天的問答環節到此結束。

I'd like to turn the conference call back over to Dr. Thompson Lin for any closing remarks.

我想將電話會議轉回給 Thompson Lin 博士，聽取任何結束語。

Again, thank you for joining us today.

再次感謝您今天加入我們。

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

一如既往，我們感謝我們的投資者、客戶和員工一直以來的支持，我們期待在即將舉行的會議上見到您。

Ladies and gentlemen, the conference has now concluded.

女士們，先生們，會議現已結束。

We do thank you for joining today's presentation.

我們非常感謝您參加今天的演講。

You may now disconnect your lines.

您現在可以斷開線路。