祥茂光電 (AAOI) 2019 Q2 法說會逐字稿

Good afternoon.

午安.

I will be your conference operator.

我將擔任您的會議操作員。

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

在此，我歡迎大家參加應用光電2019年第二季財報電話會議。

(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.

我現在將把電話轉給 AOI 投資者關係部的 Maria Riley。

Ms. Riley, you may begin.

萊利女士，您可以開始了。

Thank you.

謝謝。

I'm Maria Riley, Applied Optoelectronics Investor Relations, and I'm pleased to welcome you to AOI's 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 發布新聞稿，公佈了 2019 年第二季財務業績，並提供了 2019 年第三季的展望。

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

該版本還可在該公司網站 ao-inc.com 上取得。

This call is being recorded and webcast live.

此次通話正在錄音並進行網路直播。

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

此記錄的連結可以在 AOI 網站的投資者關係頁面上找到，並將存檔 1 年。

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

參加今天電話會議的還有 AOI 創辦人、董事長兼執行長 Thompson Lin 博士；以及 AOI 財務長兼首席策略長 Stefan Murry 博士。

Thompson will give an overview of AOI's Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2019.

Thompson 將概述 AOI 第二季業績，Stefan 將提供財務細節和 2019 年第三季的前景。

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

在我們準備好的發言之後將舉行問答環節。

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

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。

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

在今天的電話會議上，管理階層將發表前瞻性聲明。

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

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

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，您可以透過相信、預期、估計、打算、預測、預期、計劃、可能、應該、能夠、會、將或認為等術語以及傳達未來不確定性的其他類似表達方式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將我們的產品範圍擴展到新市場和客戶對我們的創新的反應相關的信念和期望的陳述，以及有關公司 2019 年第三季度前景的陳述。

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.

除法律要求外，我們不承擔在本次財報電話會議之後以任何理由更新前瞻性陳述以使這些陳述符合實際結果或公司預期變化的義務。

More information about 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，請參閱公司向 SEC 提交的報告的風險因素部分，包括公司截至 2018 年 12 月 31 日的 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公認會計原則（Non-GAAP），除非另有特別說明。

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

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

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

我們的 GAAP 和非 GAAP 指標之間的調節，以及為何提出非 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 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.

在公佈財務業績之前，我想宣布 AOI 管理層將出席 D.A. Davidson 技術會議將於 9 月 4 日在紐約舉行，Dougherty & Company 2019 年機構投資者會議將於 9 月 5 日在明尼阿波利斯舉行。

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應用光電創辦人、董事長兼執行長林湯普博士。

Thompson?

湯普森？

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

謝謝瑪麗亞，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.

我們的收入符合我們的指導方針，並取得了好於預期的淨利潤，收入為 4,340 萬美元，非 GAAP 毛利率為 27.2%，非 GAAP 每股淨虧損為 0.26 美元。

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

從本季的動態來看，資料中心的需求環境仍然符合我們的預期。

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

我們開始看到我們的兩個超大規模資料中心客戶出現復甦的早期跡象。

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 名客戶尚未開始恢復，但我們對恢復的早期跡象感到鼓舞，並相信超大規模資料中心內對更高頻寬的基本需求將推動長期成長。

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，短期內，隨著超大規模客戶的需求環境持續穩定，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.

在有線電視領域，我們仍然受到客戶活動的鼓舞，尤其是我們的 Remote-PHY 產品的成長。

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，導致對我們的一些傳統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.

客戶群多元化仍是 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 項來自資料中心設備 OEM，1 項來自資料中心營運商。

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

總而言之，我們對本季的執行情況感到滿意，這有助於我們取得好於預期的利潤。

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

我們仍然致力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，可操作的專有製造流程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，我們仍然致力於將我們的創新貨幣化。

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

接下來，我將把電話轉給 Stefan，以審查我們第二季業績的詳細資訊和第三季的前景。

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.

整體而言，本季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.

第二季總收入為 4,340 萬美元，高於我們 4,000 萬至 4,500 萬美元指導範圍的中位數。

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

我們的資料中心收入為 3,180 萬美元，而去年第二季為 6,900 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，我們資料中心營收的 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.

第二季資料中心市場的動態如預期的。

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 個超大規模資料中心客戶出現復甦的早期跡象，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資料中心客戶都保持著良好的關係，並且他們對高速光纖連接的需求仍然是其業務的基礎。

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.

我們正專注於繼續培養與現有客戶和新客戶的關係，並擴大我們的技術領先地位，我們相信這將在市場狀況改善時為 AOI 的成長提供最佳定位。

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.

我們也對新客戶贏得設計的速度和品質感到鼓舞，其中許多客戶是資料中心營運商或為資料中心垂直領域提供服務的設備原始設備製造商。

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.

憑藉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 個單獨的 100G FR 收發器，並與領先的每秒 12.8 太比特交換結構 ASIC 互通。

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

隨著資料中心營運商不斷需要更大的頻寬，從100G到400G的遷移將是資料中心架構的下一個主要步驟。

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.

隨著資料中心客戶將 400G 連線新增至其 100G 基礎架構中，他們正在尋找經過驗證且可互通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.

我們很高興擁有一個具有客戶所需的已證明互通性的解決方案。

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.

有線電視產品營收年減 31% 至 980 萬美元，而去年第二季為 1,420 萬美元，原因是北美 MSO 的需求有所減弱，而中國有線電視市場因貿易緊張和擔憂而繼續落後於預期關於中國國內經濟成長。

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

儘管有這些近期挑戰，MSO（尤其是北美的 MSO）仍在繼續制定分散式接取架構計畫。

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 產品是這些新型分散式接取網路的關鍵支援技術，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.

我們預計很快就會收到 Remote-PHY 產品的第一批重要訂單。

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，而去年第二季為 420 萬美元，反映出由於地緣政治貿易緊張局勢而導致中國銷售額下降。

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 網路部署將成為整個光學產業的一大推動因素。

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，鑑於我們在惡劣戶外環境中深厚的光學專業知識以及高度自動化的模組生產流程，隨著 5G 光學市場的發展，AOI 完全有能力擴大我們的份額。

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

我們仍然獲得許多供應商的前傳和中傳應用資格。

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.

儘管如此，請記住，鑑於這是一個新興市場，資格認證的時間和部署時間表很難預測。

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% 的收入來自資料中心產品，23% 來自 CATV 產品，其餘 4% 來自 FTTH、電信和其他產品。

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%或以上的客戶，其中2個是資料中心業務，分別貢獻了總營收的30%和29%；有線電視業務排名第一，佔總收入的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的基礎上實現客戶群多元化，並對我們取得的穩定進展感到滿意。

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 個美國資料中心客戶中總共贏得了 5 個新設計，其中一個是資料中心營運商。

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.

我還要指出的是，其中一些設計勝利擴展了我們上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%，比上季報告的 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.

本季總營運費用為 1,950 萬美元，佔營收的 44.9%，而上一季為 2,030 萬美元，佔營收的 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.

我們繼續有針對性地進行投資，重點是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.

第二季營運虧損為 770 萬美元，而第一季營運虧損為 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.

第二季非 GAAP 稅後淨虧損為 520 萬美元，即每股基本股虧損 0.26 美元，優於我們的指引。

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

相比之下，2018 年第二季的淨利潤為 1,290 萬美元，即稀釋後每股收益 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 GAAP 淨虧損為 1,140 萬美元，或每股基本股虧損 0.57 美元，去年第二季 GAAP 淨利潤為 800 萬美元，或每股稀釋每股虧損 0.40 美元。

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

用於計算第二季淨虧損的已發行基本股為1,990萬股。

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.

在第二季末，我們的現金、現金等價物、短期投資和限制性現金總額為 8,400 萬美元，而上一季末為 7,750 萬美元。

This reflects $7.2 million in cash generated from operations.

這反映了營運產生的 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 8,150 萬美元，比第一季減少 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，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.

本季我們總共進行了 1,350 萬美元的資本投資，其中包括 620 萬美元的生產設備和機械投資以及 690 萬美元的建築和建築改進投資。

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，我們目前預計 2019 年的資本支出約為 5,600 萬美元，這考慮到我們將繼續在中國建造新工廠。

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，並可能根據需要調整我們的支出計劃。

Moving now to our Q3 outlook.

現在轉向我們的第三季展望。

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%.

我們預計第三季營收將在 4,600 萬美元至 4,900 萬美元之間，非 GAAP 毛利率將在 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.

根據加權平均基本股數約為 2,000 萬股，預計非 GAAP 淨虧損將在 420 萬至 570 萬美元之間，非 GAAP 每股虧損將在每股 0.21 美元至 0.28 美元之間。

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

這樣，我會將其轉回給操作員進行問答環節。

Operator?

操作員？

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

（操作員說明）第一個問題來自西蒙·利奧波德和雷蒙德·詹姆斯。

Just a quick clarification, if I might.

如果可以的話，請快速澄清一下。

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% 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.

本季我們有 3 個 10% 的客戶。

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

資料中心業務有2家，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.

CATV 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，顯然，我們聽說主要營運商花費的資金較少，但似乎我們在光纖深度、Remote-PHY 領域仍處於早期階段。

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

因此，我認為您發表了評論，表明您才剛剛開始發貨 Remote-PHY 盒子。

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

您能否告訴我們您如何看待這件事？

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，我真正想要的是，我們應該如何思考這項業務的趨勢，無論是近期、第三季度，還是真正展望 2020 年？

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.

因此，我們所做的評論 - 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.

我們的評論是，我們期望開始獲得我們的第一個訂單——我們稱之為重大訂單，這將是這些 Remote-PHY 產品更多持續業務的開始，我們希望隨著時間的推移，這一數字會增加。

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.

就有線電視的整體節奏而言，我認為如果逐年觀察，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.

我們看到北美在上一兩個季度出現了一些放緩。

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

展望未來，我認為我們正在尋找北美 MSO 開始投資這些分散式存取架構。

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.

正如我在準備好的發言中提到的，我們是 Remote-PHY 領域的技術領導者，這是這些分散式存取架構向前發展的關鍵面向。

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

所以很難確切地說他們什麼時候會這樣做。

I think they're poised to.

我認為他們已經準備好了。

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遠端PHY 的架構的即時過渡有關，也就是說，他們在某種程度上最大限度地減少了對傳統網路的投資他們希望添加 Remote-PHY。

The precise timing behind that is difficult to predict.

背後的精確時間很難預測。

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.

我認為在我們開始看到真正的復甦之前，這可能不是第三季或第四季的事情，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，我有點回顧 2017 年的有線電視業務，當時它主要以傳輸為導向，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實施的時間框架。

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

這是思考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，我想再次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.

我認為我們有充分的理由相信我們可以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，它確實需要在北美進行向 Remote-PHY 的過渡。

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.

正如我所說，我預計這將在 2020 年發生，儘管眾所周知，有線電視市場很難預測，特別是預測它們何時開始運作。

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整體趨勢，但具體何時開始以及成長的速度仍然有點難以預測。

Just one more, if I might.

如果可以的話，只要再來一張。

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

您提到 400G 產品即將問世。

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?

您能否幫助我們思考如何與一些 OEM 和一些大型半導體公司推出的矽光子學差異相比具有競爭力？

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

只是想知道當您進入資料中心內部 400 GB 市場時，矽光子學如何參與競爭格局？

Sure.

當然。

I mean, silicon photonics is not a new technology.

我的意思是，矽光子學並不是新技術。

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，我們已經有了 100g 的矽光子學，甚至在此之前就已經有了較低資料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，也就是我們有能力在內部製造收發器的大部分成本驅動元件，同時也建立在我們的製造專業知識之上。

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.

我認為我們過去已經廣泛討論了我們的自動化製造流程，以及我們使這些流程自動化的平台技術。

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 產品甚至未來幾代產品進行設計，我們可以在非常具有成本效益的製造流程中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.

這使我們有能力與其他技術競爭。

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，內部 EML 將為我們帶來 AOI 更強的優勢。

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.

如果我也能先澄清一下就好了。

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

我知道您提到了資料中心收入中的 100 GB 和 400 - 40 GB 混合。

Could you just repeat that?

你能重複一遍嗎？

Sorry, I missed that.

抱歉，我錯過了。

Sure, no problem.

當然，沒問題。

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

本季資料中心營收的 72% 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 場演出的組合有所下降，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超大規模客戶或資料中心客戶（您所說的話）缺乏恢復造成的嗎？

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

或者這更多是由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，這幾乎完全是由 1 位尚未康復的客戶推動的。

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，我認為這實際上對 AOI 來說是一件好事。

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

一段時間以來，我們一直是 40G 領域的領導者。

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.

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

It's pretty much isolated to the 1 customer.

它對 1 個客戶來說幾乎是孤立的。

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?

只是一個關於關稅的問題，例如現在提議對來自中國的進口商品徵收 10% 的關稅，您預計會對您的毛利率產生任何影響嗎？

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，我相信你們在台灣有一家工廠，您是否看到客戶有興趣在工廠擴大業務？

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

如果您要求擴大那裡的產能，您那裡有多少靈活產能？

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

所以我們在台灣確實有一家工廠可以製造資料中心收發器。

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

事實上，它已經製造了我們資料中心收發器的一部分。

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

客戶對我們在台灣的製造能力非常感興趣。

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.

我們能做的就是在我們的台灣和中國工廠之間轉移一些製造業務，這樣我們就可以在關稅生效時根據需要增加額外的產能。

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與資料中心無關的其他輔助產品的製造轉移到中國，並增加台灣資料中心產品的產能。

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.

從我們目前的情況來看，我們認為我們已經處於有利位置，能夠在台灣工廠生產客戶要求的產品，至少對美國客戶來說是如此。

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，他們的收發器使用量也並非全部都在美國。

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.

但對於需要進口到美國的產品，我們當然有可能在台灣生產，如果關稅到位，這就是我們的計畫。

(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，對於這個棘手的問題，我深表歉意，但我沒聽錯吧，100G 佔資料中心收入的 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，如果我看看未來更廣闊的前景，為什麼投資者會相信你會在400 場演出中取得有意義的成功，然後在30 場和40 場演出上取得任何有意義的成功，而你幾乎沒有取得任何有意義的成功。

What would you tell investors?

您想對投資人說些什麼？

Do you have hope in your story?

你對你的故事充滿希望嗎？

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?

我對這個廣泛的問題表示歉意，但我只是想知道如果你沒有在 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.

嗯，我認為說我們在 100 場演出上沒有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，我們去年的銷量可觀，達到 100 場。

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

事實上，這是我們迄今為止最暢銷的產品線。

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.

我想說的是，不同的客戶在不同的時間購買不同的應用程式以及不同應用程式的不同數據速率。

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，並非每個客戶都已開始恢復週期。

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，在該復甦週期中，如果他們仍在大量購買 100G，也就是說，如果他們還沒有轉向 400G，那麼我們預計會成為其中的一部分。

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，關於您提出的關於我們為什麼要成為 400G 玩家的更直白的問題，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 或他們不被 AOI 所提供的功能所吸引，他們就不會浪費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.

現在這些資格認證正在進行中。

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

我無法確定所有這些的結果會是什麼，但到目前為止，結果都很好。

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

我預計它們會——也許至少其中一些會成功完成——也許是全部。

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資料速率。

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

我們涉足資料中心市場已經很長一段時間了。

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

長期以來，我們一直是資料中心市場的領導者。

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

我看不出 400G 有何顯著差異。

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 Thompson 之前提到的，我們的電吸收調製雷射 (EML) 等技術不僅對於 400G 收發器的性能至關重要，而且對於其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.

透過擁有這種內部技術，我們認為這使我們處於非常有利的地位，不僅成為 400G 的技術領導者，而且成為 400G 的成本領導者，就像我們在 100G、40G 和 10G 時一樣，正如我們預計未來實現時將達到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.

因此，我認為說我們尚未成功的說法是錯誤的，我們為 400G 開發的技術非常引人注目，這就是為什麼我們與客戶保持持續的資格認證。

But let me answer that 2 points.

但讓我回答兩點。

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

一，對於 EML，100 個 EML，與 25G DML 相比，幾乎沒有什麼驚喜。

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，在內部製造 EML 的成本比排名第一的 25G DML 或 100G 收發器高得多。

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

第二，是的，我們遇到了品質問題，但我們已經提到，我們解決了問題。

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.

在過去的幾個季度中，我們贏得了許多100G收發器的設計，贏得了許多新客戶，好吧，不僅在美國，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，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品質問題。

It's that demand really slowed down, okay?

需求確實放緩了，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.

如果我可以問的話，在 200 場演出上。

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

我知道 400 場演出對大多數客戶來說仍然是 2020 年下半年的故事。

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 2 個超大規模雲端滴度正在以 200 GB 的規模遷移，其中一個恰好是您的客戶。

Are they doing any 200-gig?

他們有200場演出嗎？

Are you shipping 200-gig?

你們運送 200 場演出嗎？

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

您現在有 200 場演出的份額嗎？

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

是的，自去年以來我們已經出貨了 200 場。

It's not a huge quantity.

這不是一個龐大的數量。

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，如果你看看 40-gig 和 100-gig 的百分比，但我們確實贏得了 200-gig 的設計。

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.

我代表亞歷克斯·亨德森。

Just a quick question on the gross margins.

只是一個關於毛利率的簡單問題。

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 40 G 毛利率或 100 G 毛利率任何顏色嗎？

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 場演出的毛利率是否為正？

They're definitely positive for 100-gig.

他們對 100 場演出絕對持正面態度。

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

我們不會對個別產品的毛利率給予具體指導，但可以肯定的是，它們是正面的。

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

不，100 場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，由於台灣和中國大陸收發器製造的自動化，我們與其他供應商相比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.

由於沒有其他問題了，我想將電話回撥給 Thompson Lin 博士，請其發表結束語。

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。

Thank you.

謝謝。

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.

現在您可以斷開線路。