祥茂光電 (AAOI) 2019 Q2 法說會逐字稿

Good afternoon.

下午好。

I will be your conference operator.

我將是您的會議運營商。

At this time, I would like to welcome everyone to the Applied Optoelectronics Second Quarter 2019 Earnings Conference Call.

在此，歡迎大家參加應用光電2019年第二季度財報電話會議。

(Operator Instructions) Please note, this event is being recorded.

（操作員說明）請注意，正在記錄此事件。

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

我現在將電話轉給 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.

謝謝你。

I'm Maria Riley, Applied Optoelectronics Investor Relations, and I'm pleased to welcome you to AOI's Second Quarter 2019 Financial Results Conference Call.

我是應用光電投資者關係部門的 Maria Riley，很高興歡迎您參加 AOI 2019 年第二季度財務業績電話會議。

After the market closed today, AOI issued a press release announcing its second quarter 2019 financial results and provided its outlook for the third quarter of 2019.

今天收盤後，AOI 發布了一份新聞稿，公佈了其 2019 年第二季度的財務業績，並提供了 2019 年第三季度的展望。

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 Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2019.

Thompson 將概述 AOI 第二季度的業績，Stefan 將提供財務細節和 2019 年第三季度的展望。

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。

In some cases, you can identify forward-looking statements by terminologies such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks and by other similar expressions that convey uncertainty of future events or outcomes.

在某些情況下，您可以通過相信、預期、估計、打算、預測、期望、計劃、可能、應該、可能、會、將或認為等術語以及其他表達未來不確定性的類似表達來識別前瞻性陳述事件或結果。

Forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of our products into new markets and customer responses to our innovations, as well as statements regarding the company's outlook for the third quarter of 2019.

前瞻性陳述還包括有關管理層對我們產品進入新市場的影響力和客戶對我們創新的反應的信念和期望的陳述，以及有關公司 2019 年第三季度展望的陳述。

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, including the company's annual report on Form 10-K for the year ended December 31, 2018.

有關可能影響公司業務的其他風險的更多信息，請參見公司向美國證券交易委員會備案的報告的風險因素部分，包括公司截至 2018 年 12 月 31 日止年度的 10-K 表格年度報告。

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 措施之間的對賬，以及對我們為何提出非 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 D.A. Davidson Technology Conference in New York on September 4, and the Dougherty & Company 2019 Institutional Investor Conference in Minneapolis on September 5. We hope to have the opportunity to see many of you there.

在談到財務結果之前，我想宣布 AOI 管理層將出席 D.A. 9 月 4 日在紐約舉行的戴維森技術會議，以及 9 月 5 日在明尼阿波利斯舉行的 Dougherty & Company 2019 年機構投資者會議。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 third quarter 2019 earnings call is currently scheduled for Wednesday, November 6, 2019.

此外，我想指出，我們 2019 年第三季度財報電話會議的日期目前定於 2019 年 11 月 6 日，星期三。

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, and thank you, everyone, for joining us today.

謝謝 Maria，也謝謝大家今天加入我們。

We are pleased with our execution during the quarter.

我們對本季度的執行情況感到滿意。

We delivered revenue in line with our guidance and achieved better-than-expected result on the bottom line, having delivered revenue of $43.4 million, non-GAAP gross margin of 27.2% and a non-GAAP net loss of $0.26 per share.

我們按照我們的指導交付了收入，並在底線取得了好於預期的結果，實現了 4340 萬美元的收入、27.2% 的非 GAAP 毛利率和 0.26 美元的非 GAAP 每股淨虧損。

In looking at the dynamics in the quarter, the datacenter demand environment remain consistent with our expectation.

從本季度的動態來看，數據中心需求環境與我們的預期保持一致。

We are starting to see early sign of recovery among 2 of our hyperscale datacenter customers.

我們開始在 2 個超大規模數據中心客戶中看到復甦的早期跡象。

While 1 customer has yet to begin a recovery, we are encouraged by early sign of recovery and believe the fundamental needs for higher bandwidth within hyperscale datacenter will drive long-term growth.

雖然 1 個客戶尚未開始恢復，但我們對恢復的早期跡象感到鼓舞，並相信超大規模數據中心對更高帶寬的基本需求將推動長期增長。

However, in the short term, we remain cautiously optimistic on the market dynamics as the demand environment continue to stabilize among our hyperscale customers.

然而，在短期內，隨著超大規模客戶的需求環境繼續穩定，我們對市場動態保持謹慎樂觀。

In CATV, we remain encouraged by customer activity, especially increase in our Remote-PHY products.

在 CATV 中，我們仍然受到客戶活動的鼓舞，尤其是我們 Remote-PHY 產品的增加。

However, the overall CATV market demand continued to be soft, resulted in tepid demand for some of our legacy products.

然而，整體有線電視市場需求持續疲軟，導致對我們部分遺留產品的需求不溫不火。

Additionally, CATV demand in China is weaker than we had expected as a result of trade tensions.

此外，由於貿易緊張局勢，中國的有線電視需求弱於我們的預期。

Diversifying our customer base remain a top priority for AOI.

使我們的客戶群多樣化仍然是 AOI 的首要任務。

In the quarter, we secured 5 new design wins, including 4 with an equipment OEM for datacenters and 1 with a datacenter operator.

本季度，我們贏得了 5 項新設計，其中 4 項與數據中心設備 OEM 合作，1 項與數據中心運營商合作。

In summary, we are pleased with our execution this quarter, which contributed to our better-than-expected bottom line results.

總而言之，我們對本季度的執行感到滿意，這促成了我們好於預期的底線結果。

We remain focused on fostering relationship with both existing and new customers and expanding our technology leadership.

我們仍然專注於培養與現有和新客戶的關係，並擴大我們的技術領先地位。

We believe operable proprietary manufacturing process and vertical integration are keys to our success in the market, and we remain committed in our ability to monetize our innovation as the market improve and move to next-generation technologies.

我們相信可操作的專有製造工藝和垂直整合是我們在市場上取得成功的關鍵，隨著市場的改善和轉向下一代技術，我們將繼續致力於將我們的創新貨幣化的能力。

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

有了這個，我將把電話轉給 Stefan，審查我們第二季度業績和第三季度展望的細節。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

Overall, the demand environment in the quarter was consistent with our expectations.

總體而言，本季度的需求環境符合我們的預期。

Total revenue for the second quarter was $43.4 million, which was above the midpoint of our guidance range of $40 million to $45 million.

第二季度的總收入為 4340 萬美元，高於我們 4000 萬至 4500 萬美元指導範圍的中點。

Our datacenter revenue came in at $31.8 million compared with $69 million in Q2 of last year.

我們的數據中心收入為 3180 萬美元，而去年第二季度為 6900 萬美元。

In the quarter, 72% of our datacenter revenue was from our 40G transceiver products and 23% was from our 100G products.

本季度，我們數據中心收入的 72% 來自我們的 40G 收發器產品，23% 來自我們的 100G 產品。

The datacenter market dynamics played out in Q2 as expected.

數據中心市場動態如預期在第二季度發揮作用。

We are starting to see early signs of recovery among 2 of our hyperscale datacenter customers, while 1 customer continues to purchase product from us, but with reduced demand.

我們開始看到 2 個超大規模數據中心客戶復甦的早期跡象，而 1 個客戶繼續從我們這裡購買產品，但需求減少。

As Thompson mentioned, while we are encouraged by these early signs of a recovery, we remain cautiously optimistic on the near-term market dynamics.

正如湯普森所提到的，雖然我們對這些復甦的早期跡象感到鼓舞，但我們對近期市場動態仍持謹慎樂觀態度。

We continue to believe that we have good relationships with all of our hyperscale datacenter customers, and that their need for high-speed optical connectivity remains fundamental to their business.

我們仍然相信，我們與所有超大規模數據中心客戶都保持著良好的關係，並且他們對高速光連接的需求仍然是他們業務的基礎。

We are focusing our efforts on continuing to foster relationships with both existing and new customers and expanding our technology leadership, which we believe will best position AOI for growth when market conditions improve.

我們正集中精力繼續培養與現有和新客戶的關係，並擴大我們的技術領先地位，我們相信這將在市場條件改善時為 AOI 的增長提供最佳定位。

We are also encouraged by the pace and quality of the design wins we are seeing with new customers, many of whom are datacenter operators or equipment OEMs that supply the datacenter vertical.

我們也對我們在新客戶中看到的設計獲勝的速度和質量感到鼓舞，其中許多是數據中心運營商或提供垂直數據中心的設備 OEM。

Building upon our strong foundation as a leader in advanced optical technology, we recently showcased the ability of AOI's 400G QSFP transceivers to break out into 4 individual 100G FR transceivers and interoperate with a leading 12.8 terabit per second switch-fabric ASIC.

基於我們作為先進光學技術領導者的堅實基礎，我們最近展示了 AOI 的 400G QSFP 收發器能夠分解為 4 個獨立的 100G FR 收發器並與領先的每秒 12.8 太比特交換結構 ASIC 互操作的能力。

As datacenter operators continue to demand greater bandwidth, the migration from 100G to 400G will be the next major step in datacenter architecture.

隨著數據中心運營商不斷需要更大的帶寬，從 100G 遷移到 400G 將是數據中心架構的下一個重要步驟。

As datacenter customers add 400G connectivity to their 100G infrastructure, they are looking for validated and interoperable solutions to gain confidence and reduced deployment time lines.

隨著數據中心客戶將 400G 連接添加到他們的 100G 基礎設施，他們正在尋找經過驗證和可互操作的解決方案來獲得信心並縮短部署時間。

We are very pleased to have a solution with the demonstrated interoperability that our customers demand.

我們很高興有一個解決方案具有客戶要求的已證明的互操作性。

Turning to our cable television market.

轉向我們的有線電視市場。

Revenue from CATV products decreased 31% year-over-year to $9.8 million compared with $14.2 million in Q2 of last year, as demand has weakened somewhat with North American MSOs, and the China CATV market continues to lag expectations due to trade tensions and concerns about domestic economic growth in China.

CATV 產品的收入同比下降 31% 至 980 萬美元，而去年第二季度為 1420 萬美元，原因是北美 MSO 的需求有所減弱，而且由於貿易緊張和擔憂，中國 CATV 市場繼續落後於預期關於中國國內經濟增長。

Despite these near-term challenges, MSOs, particularly those in North America, continued to forge plans for distributed access architectures.

儘管存在這些近期挑戰，MSO，尤其是北美的 MSO，仍在繼續制定分佈式訪問架構計劃。

We believe that our Remote-PHY product is a key-enabling technologies for these new distributed access networks, and we are excited about the customer interest in Remote-PHY.

我們相信，我們的 Remote-PHY 產品是這些新型分佈式接入網絡的關鍵支持技術，我們對客戶對 Remote-PHY 的興趣感到興奮。

We expect to receive our first significant orders for our Remote-PHY products soon.

我們希望很快收到我們的 Remote-PHY 產品的第一筆重要訂單。

Our telecom products delivered revenue of $1.6 million compared with $4.2 million in Q2 of last year, reflecting lower sales in China, given geopolitical trade tensions.

我們的電信產品實現了 160 萬美元的收入，而去年第二季度為 420 萬美元，這反映出由於地緣政治貿易緊張局勢，中國的銷售額有所下降。

In telecom, we continue to see 5G network deployments poised to become a large driving factor for the optical industry as a whole.

在電信領域，我們繼續看到 5G 網絡部署有望成為整個光學行業的重要驅動因素。

We believe AOI is well positioned to grow our shares as the 5G optics market develops, given our deep optical expertise in harsh outdoor environments and our highly automated module production process.

我們相信 AOI 有能力隨著 5G 光學市場的發展擴大我們的份額，因為我們在惡劣的戶外環境中擁有深厚的光學專業知識，並且我們的模塊生產過程高度自動化。

We remain in qualification with a number of vendors for both front- and mid-haul applications.

我們在前端和中程應用程序方面與許多供應商保持一致。

With that said, please keep in mind that given this is an emerging market, the timing of qualification and deployment schedules are difficult to predict.

話雖如此，請記住，鑑於這是一個新興市場，鑑定和部署時間表的時間很難預測。

For the quarter, 73% of our revenue was from datacenter products, 23% from CATV products, with the remaining 4% from FTTH, telecom and other.

本季度，我們 73% 的收入來自數據中心產品，23% 來自 CATV 產品，其餘 4% 來自 FTTH、電信和其他。

In the second quarter, we had 3 10% or greater customers, 2 in the datacenter business that contributed 30% and 29% of total revenue, respectively; and 1 in the CATV business that contributed 14% of total revenue.

第二季度，我們有 3 個 10% 或更大的客戶，其中 2 個來自數據中心業務，分別貢獻了總收入的 30% 和 29%；有線電視業務中有 1 家，貢獻了總收入的 14%。

We continued to build on our earlier success in diversifying our customer base and are pleased with the steady progress we have made.

我們繼續在早期成功實現客戶群多元化的基礎上再接再厲，並對我們取得的穩步進展感到滿意。

In the quarter, we secured a total of 5 new design wins among 2 U.S.-based datacenter customers, one of which is a datacenter operator.

本季度，我們在 2 個美國數據中心客戶中贏得了 5 個新設計，其中一個是數據中心運營商。

I will also note that several of these design wins expand on a new customer relationship we secured last quarter with an OEM supplier to the hyperscale and enterprise markets.

我還會注意到，其中一些設計勝利擴展了我們上個季度與超大規模和企業市場的 OEM 供應商建立的新客戶關係。

Moving beyond revenue.

超越收入。

We generated a gross margin of 27.2%, a 170 basis point improvement from 25.5% reported last quarter and slightly higher than our guidance.

我們的毛利率為 27.2%，比上一季度報告的 25.5% 提高了 170 個基點，略高於我們的指引。

Total operating expenses in the quarter were $19.5 million or 44.9% of revenue compared with $20.3 million or 38.4% of revenue in the prior quarter.

本季度總運營費用為 1950 萬美元，佔收入的 44.9%，上一季度為 2030 萬美元，佔收入的 38.4%。

We continue to be targeted with our investments, with an emphasis on developing and enhancing our next-generation of optical products, while also tightly managing expenses.

我們繼續以我們的投資為目標，重點開發和增強我們的下一代光學產品，同時嚴格管理費用。

Operating loss in Q2 was $7.7 million compared with an operating loss of $6.8 million in Q1.

第二季度的運營虧損為 770 萬美元，而第一季度的運營虧損為 680 萬美元。

Non-GAAP net loss after tax for the second quarter was $5.2 million or a loss of $0.26 per basic share, which was better than our guidance.

第二季度非 GAAP 稅後淨虧損為 520 萬美元或每股基本股虧損 0.26 美元，好於我們的指導。

This compares to net income of $12.9 million or $0.64 per diluted share in Q2 of 2018.

相比之下，2018 年第二季度的淨收入為 1290 萬美元或每股攤薄收益 0.64 美元。

GAAP net loss for Q2 was $11.4 million or a loss of $0.57 per basic share compared with GAAP net income of $8 million or $0.40 per diluted share in Q2 of last year.

第二季度的 GAAP 淨虧損為 1140 萬美元或每股基本股虧損 0.57 美元，而去年第二季度的 GAAP 淨收入為 800 萬美元或每股攤薄收益 0.40 美元。

The basic shares outstanding used for computing the net loss in Q2 were 19.9 million shares.

用於計算第二季度淨虧損的已發行基本股為 1990 萬股。

Turning now to the balance sheet.

現在轉向資產負債表。

We ended Q2 with $84 million in total cash, cash equivalents, short-term investments and restricted cash, compared with $77.5 million at the end of the previous quarter.

我們在第二季度末的總現金、現金等價物、短期投資和受限現金為 8400 萬美元，而上一季度末為 7750 萬美元。

This reflects $7.2 million in cash generated from operations.

這反映了運營產生的 720 萬美元現金。

As of June 30, we had $81.5 million in inventory, a decrease of $3 million from Q1.

截至 6 月 30 日，我們的庫存為 8150 萬美元，比第一季度減少了 300 萬美元。

This inventory reduction is consistent with our long-term plan as we continue to rationalize inventory levels.

隨著我們繼續合理化庫存水平，這種庫存減少符合我們的長期計劃。

We made a total of $13.5 million in capital investments in the quarter, including $6.2 million in production equipment and machinery and $6.9 million on construction and building improvements.

本季度我們的資本投資總額為 1,350 萬美元，其中 620 萬美元用於生產設備和機械，690 萬美元用於建築和建築改造。

Looking ahead, we now expect capital expenditures in 2019 to be approximately $56 million, which factors in a continuation of the construction of our new factory in China.

展望未來，我們現在預計 2019 年的資本支出約為 5600 萬美元，這將繼續在中國建設新工廠。

We continue to monitor end market conditions and may adjust our spending plans as necessary.

我們將繼續監控終端市場狀況，並可能在必要時調整我們的支出計劃。

Moving now to our Q3 outlook.

現在轉到我們的第三季度展望。

We expect Q3 revenue to be between $46 million and $49 million, and non-GAAP gross margin to be in the range of 27% to 29%.

我們預計第三季度收入在 4600 萬美元至 4900 萬美元之間，非 GAAP 毛利率在 27% 至 29% 之間。

Non-GAAP net loss is expected to be in the range of $4.2 million to $5.7 million and non-GAAP loss per share between $0.21 per share and $0.28 per share, using a weighted average basic share count of approximately 20 million shares.

非 GAAP 淨虧損預計在 420 萬美元至 570 萬美元之間，非 GAAP 每股虧損在每股 0.21 美元至 0.28 美元之間，使用加權平均基本股數約為 2000 萬股。

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 the first question comes from Simon Leopold with Raymond James.

（操作員說明）第一個問題來自 Simon Leopold 和 Raymond James。

Just a quick clarification, if I might.

如果可以的話，只是快速澄清一下。

I think you mentioned your 10% customers, I didn't get down the color you offered on that.

我想你提到了你的 10% 的客戶，我沒有記下你提供的顏色。

Could you just repeat that comment?

你能重複一下那個評論嗎？

Yes.

是的。

We had 3 10% customers during the quarter.

本季度我們有 3 個 10% 的客戶。

2 were in the datacenter business, they contributed 30% and 29%, respectively, of total revenue.

2家從事數據中心業務，分別貢獻了總收入的30%和29%。

And then there is one customer in the CATV business that was 14% of total revenue.

然後有線電視業務中有一個客戶佔總收入的 14%。

So on the cable TV business, clearly, we've heard from the major operators spending less money, but it seems as if we're still very early in the fiber deep, Remote-PHY.

因此，在有線電視業務方面，很明顯，我們從主要運營商那裡聽說花費更少的錢，但似乎我們還處於光纖深度 Remote-PHY 的早期階段。

And so I think you made a comment suggesting that you are only just beginning to ship your Remote-PHY boxes.

因此，我認為您發表的評論表明您才剛剛開始運送 Remote-PHY 盒。

If you could give us a sense of how you see this playing out?

如果你能告訴我們你是如何看待這件事的？

And I guess, what I'm really getting at is, how should we think about the trending of this business, both near term, third quarter and then really looking at kind of 2020?

我想，我真正想知道的是，我們應該如何看待這項業務的趨勢，包括近期、第三季度以及真正展望 2020 年的趨勢？

Yes.

是的。

So the comment that we made -- I think, on the last few conference calls, we've mentioned that we have been selling Remote-PHY products.

所以我們發表的評論——我認為，在最近幾次電話會議上，我們提到我們一直在銷售 Remote-PHY 產品。

The comment that we made is that we're expecting to start getting our first -- what we would term sort of significant orders, that is something that, that would be the beginning of more of an ongoing business for those Remote-PHY products and one that we hope would grow into a larger number over time.

我們發表的評論是，我們期待開始獲得我們的第一個 - 我們稱之為重要訂單，這將是那些 Remote-PHY 產品的更多持續業務的開始，並且我們希望隨著時間的推移會增長到更大的數量。

As far as the overall cadence on cable TV, I think if you look year-over-year, what we've seen is primarily related to China slowing down.

至於有線電視的整體節奏，我認為如果你逐年看，我們所看到的主要與中國經濟放緩有關。

We've seen some slowdown in North America in the last quarter or 2. So it depends if you're looking on a sequential basis or year-over-year in terms of what's causing the downturn.

我們在上個季度或第二個季度看到北美出現了一些放緩。因此，這取決於您是按順序還是逐年查看導致經濟下滑的原因。

When we look ahead, I think we're looking for the North American MSOs to begin to invest in these distributed access architectures.

當我們展望未來時，我認為我們正在尋找北美 MSO 開始投資於這些分佈式訪問架構。

And as I've mentioned in our prepared remarks, we're a technology leader in Remote-PHY, which is a key aspect of these distributed access architectures moving forward.

正如我在準備好的評論中提到的，我們是 Remote-PHY 的技術領導者，這是這些分佈式訪問架構向前發展的一個關鍵方面。

So it's hard to say exactly when they're going to do that.

所以很難說他們什麼時候會這樣做。

I think they're poised to.

我認為他們準備好了。

I think, some of the slowdown that we're seeing now among the North American MSOs is probably related to the immediacy of their transition to this Remote-PHY-based architecture, that is, they're kind of minimizing their investments in legacy networks while they look to add Remote-PHY.

我認為，我們現在在北美 MSO 中看到的一些放緩可能與他們向這種基於 Remote-PHY 的架構的即時過渡有關，也就是說，他們正在盡量減少對傳統網絡的投資而他們希望添加 Remote-PHY。

The precise timing behind that is difficult to predict.

這背後的確切時間很難預測。

I think we're probably -- it's probably not a Q3 or Q4 kind of thing before we start to see a real resurgence, but it's a little hard to predict at this point.

我認為我們可能 - 在我們開始看到真正的複甦之前，這可能不是第三季度或第四季度的事情，但目前有點難以預測。

So I guess, I'm sort of reflecting back on the cable TV business in 2017, where it was very much transmission oriented, you did about $60 million.

所以我想，我在某種程度上回顧了 2017 年的有線電視業務，它在很大程度上以傳輸為導向，你做了大約 6000 萬美元。

I'm just wondering if we should think about that as a reasonable expectation for 2020 or at least the time frame where these initiatives really get going.

我只是想知道我們是否應該將其視為對 2020 年的合理預期，或者至少是這些舉措真正開始的時間框架。

Is that a reasonable way to think about that line of business?

這是考慮該業務線的合理方式嗎？

I mean, again, I want to give you a sort of precise number.

我的意思是，再次，我想給你一個精確的數字。

I think there's every reason to believe we can get back to, to levels similar to or greater than what we've been at in the historical period.

我認為有充分的理由相信我們可以回到、回到與歷史時期相似或更高的水平。

It does require this transition to Remote-PHY, I think, to happen in North America.

我認為，它確實需要這種向 Remote-PHY 的過渡才能在北美髮生。

And like I said, I would expect that, that would happen in 2020, although the cable TV market is notoriously difficult to project, specifically, the timing of when they start to get going.

就像我說的，我預計這會在 2020 年發生，儘管眾所周知，有線電視市場很難預測，特別是它們開始運行的時間。

I think the overall trend we can be fairly certain of, but exactly when they get going and how fast they ramp-up is still a bit tough to forecast.

我認為我們可以相當確定總體趨勢，但它們何時開始以及它們的上升速度仍然有點難以預測。

Just one more, if I might.

如果可以的話，再多一個。

You mentioned the 400-gig products starting to come out.

你提到了 400 兆的產品開始問世。

Just if you could help us think about how, how you could be competitive versus the silicon photonics variance that are coming out from some of the OEMs and some of the larger semiconductor companies?

只是如果你能幫助我們思考如何，你如何才能與一些 OEM 和一些較大的半導體公司出現的矽光子差異競爭？

Just wondering how silicon photonics sort of plays into the competitive landscape when you're in the market at 400-gig inside the datacenter?

只是想知道當您在數據中心內以 400 兆位進入市場時，矽光子學如何在競爭格局中發揮作用？

Sure.

當然。

I mean, silicon photonics is not a new technology.

我的意思是，矽光子學並不是一項新技術。

As you know, we've had silicon photonics at 100-gig, and there's been silicon photonic solutions at lower data rates even before that.

如您所知，我們已經擁有 100-gig 的矽光子學，甚至在此之前就已經有較低數據速率的矽光子解決方案。

Our competitive advantage is built upon our vertical integration, that is our ability to manufacture a significant part of the cost driving elements of the transceiver in-house, and also on our manufacturing expertise.

我們的競爭優勢建立在我們的垂直整合之上，即我們能夠在內部製造收發器的成本驅動元件的重要部分，以及我們的製造專業知識。

I think we've talked extensively in the past about our automated manufacturing processes, and our platform technology that has allowed us to automate those processes.

我想我們過去已經廣泛討論了我們的自動化製造流程，以及我們的平台技術使我們能夠自動化這些流程。

So it's not just the automation itself, but it's having a design for our 100G products and our 400G products and even future generations, where we can manufacture those in an automated way in a very cost-effective manufacturing process.

因此，這不僅僅是自動化本身，而是為我們的 100G 產品和 400G 產品甚至後代產品設計，我們可以在其中以非常具有成本效益的製造過程以自動化方式製造這些產品。

And that's what gives us the ability to compete with those other technologies.

這就是讓我們有能力與其他技術競爭的原因。

And Simon, this is Thompson.

西蒙，這是湯普森。

And I want to emphasize for 400G and 800G, making EML in-house will give us -- give AOI even stronger advantage, all right, compared to 100G used in the DML.

我想強調的是，對於 400G 和 800G，與 DML 中使用的 100G 相比，在內部製作 EML 會給我們——給 AOI 更大的優勢，好吧。

And the next question comes from Samik Chatterjee with JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

If I could just start off with a clarification as well.

如果我也可以從澄清開始。

I know you mentioned the 100-gig and 400 -- 40-gig mix in the datacenter revenues.

我知道你在數據中心收入中提到了 100-gig 和 400-40-gig 的組合。

Could you just repeat that?

你能再重複一遍嗎？

Sorry, I missed that.

對不起，我錯過了。

Sure, no problem.

好沒問題。

The -- 72% of the datacenter revenue was from 40G and 23% was from 100G in the quarter.

本季度 72% 的數據中心收入來自 40G，23% 來自 100G。

Got it.

知道了。

And so I think that kind of implies a kind of decline in the 100-gig mix, overall, a strong decline in the revenues.

因此，我認為這意味著 100 演出組合的某種下降，總體而言，收入大幅下降。

Is that primarily driven by the kind of the lack of recovery that you see -- saw with one of the hyperscale customers or datacenter customers, as you call them?

這主要是由您所看到的那種缺乏恢復所驅動的嗎？正如您所稱的超大規模客戶或數據中心客戶之一所看到的那樣？

Or was that more driven by something else that I'm not really thinking about?

還是更多的是我沒有真正考慮過的其他事情所驅動的？

No, it's almost entirely driven by the 1 customer who has yet to recover.

不，它幾乎完全是由尚未恢復的 1 位客戶驅動的。

We are seeing strength in our 40G, which I think is actually -- it's a good thing for AOI.

我們看到了 40G 的優勢，我認為這實際上是——這對 AOI 來說是件好事。

We've been a leader at 40G for some time.

一段時間以來，我們一直是 40G 的領導者。

The fact that our customers continue to be interested in 40G and continue to find new use cases for 40G and are continuing to buy significant quantities of 40G, I think, is very, very good for us, but the 100G downturn is not related to other customers.

事實上，我們的客戶繼續對 40G 感興趣並繼續尋找 40G 的新用例並繼續購買大量 40G，我認為這對我們來說非常非常好，但 100G 的低迷與其他因素無關顧客。

It's pretty much isolated to the 1 customer.

它與 1 個客戶幾乎是隔離的。

Got it.

知道了。

And just a question on the tariffs, like with the proposed 10% tariff now on incrementally goods coming from -- imported from China, are you expecting any impact to your gross margins?

還有一個關於關稅的問題，比如現在提議對來自中國的增量商品徵收 10% 的關稅，你預計對你的毛利率有什麼影響嗎？

Additionally, I believe you have a facility in Taiwan, are you seeing any pickup in interest from customers in expanding -- expanding kind of their business in that facility?

此外，我相信你在台灣有一家工廠，你是否看到客戶有興趣擴大他們在該工廠的業務種類？

And if you were to ask to expand capacity there, how much flexible capacity do you have there?

如果你要求在那裡擴大產能，你在那裡有多少靈活的產能？

So we are -- we do have a facility in Taiwan that can manufacture the datacenter transceivers.

所以我們 - 我們在台灣確實有一個可以製造數據中心收發器的工廠。

In fact, it does already manufacturing a portion of our datacenter transceivers.

事實上，它確實已經製造了我們數據中心收發器的一部分。

We have had significant interest from customers in our ability to manufacture in Taiwan.

客戶對我們在台灣製造的能力產生了濃厚的興趣。

And what we can do is move some of the manufacturing operations between our Taiwan and China factories, such that we can add additional capacity, if needed, as these tariffs come on board.

我們可以做的是在我們的台灣和中國大陸工廠之間轉移一些製造業務，這樣我們就可以在需要時增加額外的產能，因為這些關稅即將到來。

In other words, what I mean is we can take some of the manufacturing for other ancillary products that are maybe not datacenter related, move those to China and increase the capacity in Taiwan for the datacenter products.

換句話說，我的意思是我們可以將一些可能與數據中心無關的其他輔助產品的製造轉移到中國，並增加台灣數據中心產品的產能。

And where we stand right now, we think we're pretty well positioned to be able to manufacture what the customers are asking us in the Taiwan factory, at least for customers that are U.S.-based.

而我們現在所處的位置，我們認為我們有能力在台灣工廠生產客戶要求的產品，至少對於美國客戶來說是這樣。

I mean, I want to remind everyone that even among the U.S. hyperscale customers, not all of their transceiver usage is actually in the U.S. So we won't necessarily be manufacturing all of our datacenter transceivers in Taiwan.

我的意思是，我想提醒大家，即使在美國超大規模客戶中，並非所有收發器的使用實際上都在美國，因此我們不一定會在台灣製造所有數據中心收發器。

But for the ones that need to be imported into the U.S., it's certainly a possibility for us to manufacture those in Taiwan, and that's our plan should the tariffs come in place.

但對於那些需要進口到美國的產品，我們當然有可能在台灣製造這些產品，如果關稅到位，這就是我們的計劃。

(Operator Instructions) And the next question comes from Fahad Najam with Cowen & Company.

（操作員說明）下一個問題來自 Cowen & Company 的 Fahad Najam。

Stefan, Thompson, I apologize for the tough question, but did I hear you correctly that 100G was 23% of datacenter revenue?

Stefan、Thompson，對於這個尖銳的問題，我深表歉意，但我沒聽錯，100G 佔數據中心收入的 23%？

Yes, you did.

是的，你做到了。

So if I look at the broader landscape going forward, what -- why should investors believe that you would meaningfully have any success in 400-gig then 30- and 40-gig rolls off -- when you have had little to no meaningful success of latent quality issue with your lasers in the 100-gig?

因此，如果我著眼於更廣闊的未來前景，為什麼投資者應該相信你會在 400-gig 上取得任何有意義的成功，然後 30- 和 40-gig 滾滾 - 當你幾乎沒有或沒有有意義的成功100-gig 激光器的潛在質量問題？

What would you tell investors?

你會告訴投資者什麼？

Do you have hope in your story?

你對你的故事有希望嗎？

I apologize for the broad-ended question, but I'm just struggling to see how -- if you're not succeeding in 100-gig, how will you succeed in 400- gig?

對於這個廣泛的問題，我深表歉意，但我只是想看看如何——如果你沒有在 100 場演出中取得成功，你將如何在 400 場演出中取得成功？

Well, I think it's a mischaracterization to say that we're not succeeding in 100-gig.

好吧，我認為說我們沒有在 100 演出中取得成功是一種錯誤的描述。

As you noted, we have sizable sales of 100-gig last year.

正如您所指出的，去年我們的銷售額達到了 100 美元。

In fact, it was our largest selling product line by far.

事實上，這是迄今為止我們銷量最大的產品線。

I would not call that not having success.

我不會稱之為沒有成功。

What I would say is that different customers purchase different applications and different data rates for different applications at different times.

我要說的是，不同的客戶在不同的時間為不同的應用程序購買不同的應用程序和不同的數據速率。

Not every customer, as we've noted in our prepared remarks, has yet begun a recovery cycle.

正如我們在準備好的評論中指出的那樣，並非每個客戶都已經開始了恢復週期。

And we would expect that in that recovery cycle, if they're still purchasing large quantities of 100G, that is if they haven't moved on to 400G, then we'd expect to be a part of that.

我們預計在那個恢復週期中，如果他們仍在購買大量 100G，也就是說，如果他們還沒有轉向 400G，那麼我們希望成為其中的一部分。

Now with respect to your sort of more blunt question about why would we be a player at 400G, we are actively involved in a number of qualifications right now.

現在關於你為什麼要成為 400G 的玩家這個更直率的問題，我們現在正在積極參與一些資格賽。

I think if customers had decided they weren't going to use AOI or they weren't attracted by what AOI had to offer, they're not going to waste their effort and resource working with us on these qualification efforts.

我認為，如果客戶決定不使用 AOI，或者他們不被 AOI 提供的產品所吸引，他們就不會浪費他們的精力和資源與我們一起進行這些資格認證工作。

Now those qualifications are ongoing.

現在，這些資格正在進行中。

I can't tell you for sure what the results of all those are going to be, but so far, the results are good.

我不能肯定地告訴你所有這些的結果是什麼，但到目前為止，結果是好的。

And I would expect that they would -- some of them at least would be concluded successfully, maybe -- and perhaps all of them.

我希望它們——至少其中一些會成功結束，也許——或許所有這些。

The other thing I'd like to say is, I mean, 40G and 100G weren't our first data rates.

我想說的另一件事是，40G 和 100G 並不是我們的第一個數據速率。

We've been involved in the datacenter market for a long, long time.

我們涉足數據中心市場已有很長時間了。

We've been a leader in the datacenter market for a long time.

長期以來，我們一直是數據中心市場的領導者。

And I don't see any reason why 400G would be materially different.

而且我看不出 400G 有任何實質性不同的原因。

As Thompson mentioned earlier, technologies like our Electro-absorption Modulated Laser, or EML, are critical to not only to the performance, but to the cost structure of the 400G transceivers.

正如湯普森之前提到的，我們的電吸收調製激光器 (EML) 等技術不僅對性能至關重要，而且對 400G 收發器的成本結構也至關重要。

And by having that technology in-house, we think that gives us a really good position to be not only a technology leader, but a cost leader in 400G, as we were at 100G, as we were at 40G, as we were at 10G, and as we expect to be at 800G when that comes to fruition in the future.

通過內部擁有該技術，我們認為這使我們處於一個非常有利的位置，不僅可以成為技術領導者，而且可以成為 400G 的成本領導者，就像我們在 100G、40G 和 10G 時一樣，正如我們預期的那樣，當它在未來實現時將達到 800G。

So I think it's wrong to say we haven't been successful and the technology that we've developed for 400G is very compelling, which is why we have ongoing qualifications going with customers.

所以我認為說我們沒有成功是錯誤的，我們為 400G 開發的技術非常引人注目，這就是我們與客戶進行持續資格認證的原因。

But let me answer that 2 points.

但是讓我回答那兩點。

One, for EML, 100 EML, there are very few surprises, okay, compared to 25G DML.

第一，對於 EML，100 EML，與 25G DML 相比，驚喜很少。

So making EML in-house, the cost of it is very big, much, much bigger than 25G DML or 100G transceiver, where they're number one.

因此，在內部製作 EML，它的成本非常大，比 25G DML 或 100G 收發器大得多，它們是第一。

Number two, yes, we had a quality issue, but we had mentioned, we solved the problem.

第二，是的，我們遇到了質量問題，但我們已經提到，我們解決了這個問題。

And in the past few quarters, we have many design wins of 100G transceiver with many new customers, okay, not only in U.S., including Asia, including many big equipment OEM company and many hyperscale operator, okay, worldwide.

在過去的幾個季度裡，我們贏得了許多新客戶的 100G 收發器設計，好吧，不僅在美國，還包括亞洲，包括許多大型設備 OEM 公司和許多超大規模運營商，好吧，在全球範圍內。

The slowdown related to this specific customer is not the quality issue.

與該特定客戶相關的減速不是質量問題。

It's that demand really slowed down, okay?

是需求真的放緩了，好嗎？

And we are committed, and we believe when the demand come back, we're still one of the major supplier, okay, in the future, it could be sometime next year, all right?

我們承諾，我們相信當需求回升時，我們仍然是主要供應商之一，好吧，在未來，可能是明年的某個時候，好嗎？

All right.

好的。

If I may ask, on the 200-gig.

如果我可以問，在 200 演出上。

I know 400-gig is still a second half 2020 story with most of your customers.

我知道 2020 年下半年對於你們的大多數客戶來說，400-gig 仍然是一個故事。

But 2 of the large largest hyperscale cloud titers are moving with 200-gig in the interim, one of them happens to be a customer of yours.

但在此期間，最大的超大規模雲滴度中有 2 個正在以 200-g 的速度移動，其中之一恰好是您的客戶。

Are they doing any 200-gig?

他們在做 200 場演出嗎？

Are you shipping 200-gig?

您要運送 200-gig 嗎？

Do you have any share in 200-gig at the moment?

你現在有 200-gig 的份額嗎？

Yes, we've been shipping 200-gig since last year.

是的，自去年以來我們一直在出貨 200 兆。

It's not a huge quantity.

這不是一個巨大的數量。

Obviously, if you look at the percentages for the 40-gig and 100-gig, but we do have design wins to 200-gig.

顯然，如果您查看 40-gig 和 100-gig 的百分比，但我們確實有 200-gig 的設計勝利。

And the next question comes from Michelle Waller with Needham & Company.

下一個問題來自 Needham & Company 的 Michelle Waller。

I'm on -- for Alex Henderson.

我在 - 亞歷克斯亨德森。

Just a quick question on the gross margins.

只是一個關於毛利率的快速問題。

Did you guys give any color -- can you guys give any color on 40-gig gross margins or 100-gig?

你們有沒有給出任何顏色——你們能給出 40 演出或 100 演出的任何顏色嗎？

We're just kind of wonder here if gross margins are positive for 100-gig or no?

我們只是想知道 100 演出的毛利率是否為正？

They're definitely positive for 100-gig.

對於 100-gig，它們肯定是陽性的。

We don't give specific guidance on individual product gross margins, but certainly, they're positive.

我們沒有對個別產品的毛利率給出具體指導，但肯定是積極的。

No, the gross margins for 100-gig are pretty good.

不，100 演出的毛利率相當不錯。

As we said, we have very strong cost-advantaged compared to other suppliers because of the vertical integration, because of the automation of the transceiver manufacture in Taiwan and China.

正如我們所說，由於垂直整合，由於台灣和中國收發器製造的自動化，與其他供應商相比，我們具有非常強大的成本優勢。

And as there are no more questions, I would like to return the call back to Dr. Thompson Lin for any closing remarks.

由於沒有其他問題，我想將電話轉回給 Thompson Lin 博士，聽取任何結束語。

Okay.

好的。

And thank you for joining us today.

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。

Thank you.

謝謝你。

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 your lines.

您現在可以斷開線路。