祥茂光電 (AAOI) 2019 Q4 法說會逐字稿

Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to the Applied Optoelectronics Fourth Quarter and Full Year 2019 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

午安.我將擔任您的會議主持人。現在，我歡迎大家參加應用光電2019年第四季和全年財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I will now turn the call over to Lindsay Savarese, Investor Relations for AOI. Ms. Savarese, you may begin.

現在我將把電話轉給 AOI 投資者關係部門的 Lindsay Savarese。薩瓦雷斯女士，您可以開始。

Thank you. I'm Lindsay Savarese, Applied Optoelectronics' Investor Relations, and I am pleased to welcome you to AOI's Fourth Quarter and Full Year 2019 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its fourth quarter and full year 2019 financial results and provided its outlook for the first quarter of 2020. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live. A link to that recording can be found on the Investor Relations section of the AOI website and will be archived for 1 year.

謝謝。我是應用光電公司投資者關係部門的 Lindsay Savarese，很高興歡迎您參加 AOI 2019 年第四季和全年財務業績電話會議。今天收盤後，AOI發布新聞稿，公佈了其2019年第四季和全年財務業績，並對2020年第一季進行了展望。新聞稿也可在本公司網站 ao-inc.com 上查閱。本次通話正在錄音並進行網路直播。此錄音的連結可在 AOI 網站的投資者關係部分找到，並將存檔 1 年。

Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q4 results, and Stefan will provide financial details and the outlook to the first quarter of 2020. A question-and-answer session will follow our prepared remarks.

參加今天電話會議的有 AOI 創辦人、董事長兼執行長 Thompson Lin 博士；以及 AOI 財務長兼首席策略長 Stefan Murry 博士。湯普森將概述 AOI 第四季的業績，史蒂芬將提供財務細節和 2020 年第一季的展望。我們準備好的發言之後將進行問答環節。

Before we begin, I would like to remind you to review AOI's safe harbor statements. On today's call, management will make forward-looking statements. These forward-looking statements involve risks and uncertainties as well as assumptions and current expectations, which could cause the company's actual results to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology 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. 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 innovation as well as statements regarding the company's outlook for the first quarter of 2020. 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 our actual results or to changes in the company's expectations. More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2018.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。在今天的電話會議上，管理階層將做出前瞻性陳述。這些前瞻性陳述涉及風險和不確定性以及假設和當前預期，這可能導致公司的實際結果與此類前瞻性陳述中預期的結果有重大差異。在某些情況下，您可以透過相信、預期、估計、打算、預測、期望、計劃、可能、應該、可以、將會、將要或認為等術語以及其他表達未來事件或結果不確定性的類似表達來識別前瞻性陳述。前瞻性陳述還包括有關管理層對我們的產品在新市場中的覆蓋範圍擴展和客戶對我們創新的反應的信念和期望的陳述，以及有關公司對 2020 年第一季度的展望的陳述。除法律要求外，我們不承擔在本次收益電話會議召開日期之後以任何理由更新前瞻性陳述的義務，以使這些陳述符合我們的實際結果或公司預期的變化。有關可能影響公司業務的其他風險的更多信息，請參閱公司向美國證券交易委員會提交的報告的“風險因素”部分，包括公司截至 2018 年 12 月 31 日的 10-K 表年度報告。

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

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

Before moving to the financial results, I'd like to announce that AOI management will present at the Raymond James Institutional Investor Conference on March 3 and will host an investor session at OFC on Tuesday, March 10, at the San Diego Convention Center. This discussion will be webcast live, and a link to the webcast will be available on the Investor Relations section of the AOI website. We hope to have the opportunity to see many of you there. Additionally, I'd like to note the date of our first quarter 2020 earnings call is currently scheduled for May 7, 2020.

在公佈財務結果之前，我想宣布 AOI 管理層將於 3 月 3 日出席雷蒙德詹姆斯機構投資者會議，並將於 3 月 10 日星期二在聖地亞哥會議中心的 OFC 舉辦投資者會議。本次討論將進行網路直播，網路直播的連結將在 AOI 網站的投資者關係部分提供。我們希望有機會在那裡見到你們。此外，我想指出的是，我們 2020 年第一季財報電話會議的日期目前定於 2020 年 5 月 7 日。

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

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

Thank you, Lindsay, and thank you, everyone, for joining us today. We delivered revenue in line with our guidance range and achieved better-than-expected results on the bottom line. AOI delivered Q4 revenue of $48.7 million, non-GAAP gross margin of 27.6% and a non-GAAP net loss of $0.18 per share. During the quarter, the data center demand environment remained consistent with our expectations.

謝謝你，林賽，也謝謝大家今天的到來。我們的收入符合預期範圍，並且取得了優於預期的獲利結果。AOI 第四季營收為 4,870 萬美元，非公認會計準則毛利率為 27.6%，非公認會計準則淨虧損為每股 0.18 美元。本季度，資料中心的需求環境與我們的預期保持一致。

While we are continuing to see improved order pattern among 2 of our hyperscale data center customers, we remain cautiously optimistic as demand continues to stabilize among our customers. We are pleased to report that we recently received a design win for our 400G product with a Tier 1 network equipment manufacturer, and we are encouraged by the customer interest we are seeing with this product.

雖然我們繼續看到我們的兩位超大規模資料中心客戶的訂單模式有所改善，但隨著客戶需求持續穩定，我們仍然保持謹慎樂觀的態度。我們很高興地報告，我們最近贏得了一級網路設備製造商的 400G 產品設計訂單，並且客戶對該產品的興趣令我們感到鼓舞。

In CATV, the overall CATV demand environment continued to be soft. While we expect this condition to influence our performance in the near term, we believe AOI remains well positioned, given our innovative technology as MSO move to next-generation architectures.

在有線電視方面，整體有線電視需求環境持續疲軟。雖然我們預計這種情況會在短期內影響我們的業績，但我們相信，隨著 MSO 轉向下一代架構，鑑於我們的創新技術，AOI 仍將保持良好的地位。

We continue to make good progress in diversifying our customer base. And during the quarter, we secured 9 design wins, with 8 out of 9 design wins coming from new customers. We had 31 total design wins for the year, which is nearly 20% higher than our total design wins in 2018. We believe that this much easier trend of new custom design wins activities reflects favorably on our technology domain and manufacturing execution, and it also demonstrates the ongoing success of us ready to extend sales beyond our core hyperscale customer base.

我們在客戶群多元化方面持續取得良好進展。本季度，我們獲得了 9 項設計勝利，其中 8 項來自新客戶。我們全年共獲得 31 項設計勝利，比 2018 年的設計勝利總數高出近 20%。我們相信，這種更容易的新客製化設計贏得活動的趨勢對我們的技術領域和製造執行產生了積極的影響，也證明了我們準備將銷售擴展到核心超大規模客戶群之外的持續成功。

Before turning the call over to Stefan for additional details in our outlook, I would like to first address the coronavirus outbreak as a result of the COVID-19 outbreak in China. We experienced change in our operation there in Q1. Our operation in Ningbo was shut down for approximately 2.5 weeks beyond our normal Lunar New Year holidays. We are currently up and running again at approximately 70% of our normal capacity, which is improving steadily as our staff is able to return to work. In order to reduce the impact of the shutdown on our customers, we have taken measure to increase production at our factory in Taiwan and in the U.S. And while we anticipate reduced revenue and some additional expense in Q1, we are working hard to minimize these impacts. We have included our current estimates of the impact in our guidance. However, I am cautious that there are still significant unknowns with respect to the extent and duration of the impact to operations. At this point, we expect that these issues will be temporary as the situation in China gradually gets back to normal. Stefan will provide additional detail, but I wish at the time to thank our staff and leadership in China for their dedication in dealing with this rapidly evolving situation. And our thoughts go out to all those individuals in China and around the world who are suffering from this illness.

在將電話轉給史蒂芬以了解更多展望細節之前，我想先談談中國 COVID-19 疫情造成的冠狀病毒疫情。我們在第一季的營運中經歷了變化。我們在寧波的業務在正常的農曆新年假期之外停工了大約兩周半。目前，我們的產能已恢復正常水準的約 70%，隨著員工陸續返回工作崗位，產能正在穩步提升。為了減少停工對客戶的影響，我們已採取措施增加台灣和美國工廠的產量。雖然我們預計第一季收入會減少，支出也會增加，但我們正在努力將這些影響降至最低。我們已將對影響的當前估計納入我們的指導中。然而，我謹慎地認為，對於營運的影響程度和持續時間仍然存在重大未知數。目前，我們預計，隨著中國局勢逐漸恢復正常，這些問題將是暫時的。史蒂芬將提供更多細節，但我同時希望感謝我們在中國的工作人員和領導層為應對這一迅速發展的局勢所做的奉獻。我們向中國和世界各地遭受這種疾病折磨的人們表示慰問。

We are encouraged by the traction we are seeing with our 400G products and the continuous sign of recovery from several of our data center customers. There also, we continue to be pleased with our design wins. We remain focused on delivering innovative technology to our customers and are well positioned to capitalize on opportunities ahead of us as the market improve. We are looking forward to showcase our technology solution and meeting with many of you at OFC next month.

我們的 400G 產品表現出的吸引力以及我們多個資料中心客戶持續復甦的跡象令我們感到鼓舞。我們也對我們的設計勝利感到高興。我們始終專注於為客戶提供創新技術，並已做好準備，隨著市場好轉，充分利用我們面臨的機會。我們期待下個月在 OFC 展示我們的技術解決方案並與你們見面。

With that, I will turn the call over to Stefan to review the details of our Q4 performance and outlook for Q1. Stefan?

說完這些，我將把電話交給史蒂芬，讓他回顧我們第四季的業績細節以及對第一季的展望。史蒂芬？

Thank you, Thompson. Our Q4 financial performance and demand environment were broadly in line with our expectations. Total revenue for the fourth quarter was $48.7 million, which was at the high end of our guidance range. Our data center revenue came in at $39.3 million compared with $42.6 million (sic) [$41.6 million] in Q4 of last year. In the fourth quarter, 49% of our data center revenue was from our 40G transceiver products and 42% was from our 100G products.

謝謝你，湯普森。我們的第四季財務表現和需求環境基本上符合我們的預期。第四季的總收入為 4870 萬美元，處於我們預期範圍的高端。我們的資料中心收入為 3,930 萬美元，而去年第四季為 4,260 萬美元（原文如此）（4,160 萬美元）。第四季度，我們資料中心營收的49%來自40G收發器產品，42%來自100G產品。

As Thompson mentioned, we are pleased to report a design win for our 400G product with a Tier 1 network equipment manufacturer, which we received subsequent to quarter end and are pleased with the interest and customer engagement that this product is generating. We remain in active qualification with other customers for their 400G data center transceiver needs and look forward to additional design wins as these activities culminate over the next few quarters.

正如湯普森所提到的，我們很高興地報告，我們的 400G 產品設計已與一級網絡設備製造商達成，我們在季度末收到了該合同，並對該產品所引起的興趣和客戶參與感到高興。我們仍在積極與其他客戶合作，以滿足他們的 400G 資料中心收發器需求，並期待在未來幾個季度內隨著這些活動的完成，獲得更多的設計勝利。

Data center market dynamics played out similarly to the last few quarters with a slight improvement in Q4 compared to Q3. We are continuing to see a modest recovery among 2 of our hyperscale data center customers, while 1 customer continues to purchase product from us but with reduced demand. Looking ahead, we remain cautiously optimistic about the demand picture in the near term.

資料中心市場動態與前幾季類似，第四季與第三季相比略有改善。我們繼續看到 2 個超大規模資料中心客戶出現溫和復甦，而 1 個客戶繼續向我們購買產品，但需求減少。展望未來，我們對短期內的需求前景仍持謹慎樂觀的態度。

We had 7 design wins in the quarter in our data center segment, with 4 out of the 7 wins coming from a new data center operator customer. We are very pleased with this new customer traction and expect to begin generating revenue from this new relationship this quarter.

本季度，我們在資料中心部門獲得了 7 項設計勝利，其中 4 項來自新的資料中心營運商客戶。我們對這一新客戶的吸引力感到非常高興，並預計本季將從這段新關係中開始產生收入。

Turning to our cable television products segment. Revenue from CATV products was $6.8 million compared to $12.7 million in Q4 of last year, primarily driven by weakened demand from our North American MSO customers. We continue to believe that MSOs are delaying upgrades pending the availability of new technologies such as DOCSIS 4.0. Looking ahead, we believe this environment will continue through the first half of this year, driven by demand dynamics we discussed and coupled with typical seasonality. While we believe these conditions will impact our near-term outlook, we believe that AOI remains well positioned as these new technologies roll out, given our key technologies like Remote PHY.

轉向我們的有線電視產品部門。有線電視產品營收為 680 萬美元，而去年第四季為 1,270 萬美元，主要由於北美 MSO 客戶需求減弱。我們仍然認為，MSO 正在推遲升級，等待 DOCSIS 4.0 等新技術的推出。展望未來，我們相信這種環境將持續到今年上半年，這受到我們討論過的需求動態以及典型的季節性因素的推動。雖然我們認為這些條件會影響我們的近期前景，但我們相信，鑑於我們擁有遠端 PHY 等關鍵技術，隨著這些新技術的推出，AOI 仍將保持有利地位。

Revenue from our telecom products was $2.2 million compared to $2.8 million in Q4 of last year, in line with our expectations primarily driven by a decrease in sales of certain legacy products, partially offset by increasing sales of newer products such those designed for 5G network deployments.

我們的電信產品收入為 220 萬美元，而去年第四季為 280 萬美元，符合我們的預期，這主要是由於某些傳統產品銷售額下降，但部分被為 5G 網路部署設計的新產品銷售額增長所抵消。

In addition to the 7 design wins in the data center segment, we had 1 design win in our telecom segment during Q4. This design win is with a network equipment manufacturer of 5G networking equipment. For the quarter, 81% of our revenue was from data center products, 14% from CATV products, with the remaining 5% from FTTH, telecom and other. In the fourth quarter, we had 2 10% or greater customers, both in the data center market that contributed 39% and 28% of total revenue, respectively. For the year, we had 4 10% or greater customers, 3 in the data center segment that contributed 32%, 24% and 11%, respectively, and 1 in the CATV market that contributed 10% of total revenue. In total, for the fourth quarter, we secured 9 new design wins among 6 customers, 5 of whom are new to AOI, bringing our total design wins in 2019 to 31, up from 26 design wins in 2018.

除了在資料中心領域贏得 7 項設計大獎外，我們在第四季度還在電信領域贏得 1 項設計大獎。此次設計勝利是與一家 5G 網路設備製造商合作的。本季度，我們的 81% 收入來自資料中心產品，14% 來自 CATV 產品，其餘 5% 來自 FTTH、電信和其他。第四季度，我們有2個10%或更大的客戶，都是在資料中心市場，分別貢獻了總營收的39%和28%。今年，我們擁有 4 個 10% 或更高的客戶，其中 3 個來自資料中心領域，分別貢獻了 32%、24% 和 11%，1 個來自有線電視市場，貢獻了總收入的 10%。總體而言，第四季度，我們從 6 個客戶那裡獲得了 9 個新的設計勝利，其中 5 個是 AOI 的新客戶，使我們 2019 年的設計勝利總數達到 31 個，高於 2018 年的 26 個設計勝利。

We made good progress this year in diversifying our revenue base with a declining revenue concentration. The concentration of revenue among our top 10 customers decreased from 92.9% in 2018 to 88.1% in 2019. In Q4, our top 10 customers combined to account for 87.5% of our revenue compared to 91.5% of our revenue in Q4 last year.

今年我們在收入來源多元化方面取得了良好進展，收入集中度有所下降。我們前十大客戶的收入集中度從 2018 年的 92.9% 下降至 2019 年的 88.1%。第四季度，我們的前十大客戶合計貢獻了我們87.5%的收入，而去年同期這一比例為91.5%。

In Q4, we generated a gross margin of 27.6%, up from 24.7% in Q4 of last year and within our guidance range of 26.5% to 29%, primarily driven by operational efficiencies and a favorable product mix. Total operating expenses in the quarter were $19.4 million or 39.9% of revenue, compared with $18.7 million or 31.8% of revenue in the same quarter last year. We had $0.3 million in direct economic incentives from the Chinese government in Q4.

第四季度，我們的毛利率為 27.6%，高於去年同期的 24.7%，且在我們預期的 26.5% 至 29% 範圍內，這主要得益於營運效率的提高和有利的產品組合。本季總營運費用為 1,940 萬美元，佔營收的 39.9%，而去年同期為 1,870 萬美元，佔營收的 31.8%。第四季度，我們從中國政府獲得了 30 萬美元的直接經濟誘因。

Operating loss in the fourth quarter was $6 million compared to an operating loss of $4.2 million in Q4 last year. GAAP net loss for Q4 was $35.4 million or a loss of $1.76 per basic share compared with GAAP net loss of $8.6 million or $0.43 per basic share in Q4 of last year. The increased net loss was primarily driven by a valuation allowance against certain of our deferred tax assets totaling $25.7 million. On a non-GAAP basis, net loss after tax for Q4 was $3.6 million or a loss of $0.18 per basic share, which was favorable to our guidance range of a loss of $4.3 million to $5.9 million or $0.21 to $0.30 per share and compares to a net loss of $0.5 million or a loss of $0.02 per basic share in Q4 of last year. The basic shares outstanding used for computing the net loss in Q4 were $20.1 million.

第四季營業虧損為 600 萬美元，而去年第四季營業虧損為 420 萬美元。第四季 GAAP 淨虧損為 3,540 萬美元，即每股基本虧損 1.76 美元，去年第四季 GAAP 淨虧損為 860 萬美元，即每股基本虧損 0.43 美元。淨虧損增加主要是因為我們某些遞延稅務資產的估價準備金總額為 2,570 萬美元。以非公認會計準則計算，第四季稅後淨虧損為 360 萬美元，或每股基本虧損 0.18 美元，這有利於我們預期的虧損範圍 430 萬美元至 590 萬美元或每股虧損 0.21 美元至 0.30 美元，而去年第四季度淨虧損為 50 萬美元，或每股基本虧損。用於計算第四季淨虧損的基本流通股為 2,010 萬美元。

Turning now to the balance sheet. We ended the fourth quarter with $67 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $72.4 million at the end of Q3 and reflects $3.2 million in cash used for operations. As of December 31, we had $85 million in inventory compared to $82.1 million in Q3. The increase in inventory was mainly driven by inventory buildup ahead of the Lunar New Year. Although this was planned, we believe this extra inventory will be useful to us as we continue to recover normal operations following the coronavirus shutdown.

現在來看資產負債表。截至第四季度，我們的現金、現金等價物、短期投資和受限現金總額為 6,700 萬美元。相比之下，第三季末的現金為 7,240 萬美元，其中用於營運的現金為 320 萬美元。截至 12 月 31 日，我們的庫存為 8,500 萬美元，而第三季為 8,210 萬美元。庫存增加主要是由於農曆新年前的庫存增加。儘管這是計劃好的，但我們相信，這些額外的庫存對我們在冠狀病毒停工後繼續恢復正常運作將很有用。

Longer term, we continue to believe that inventory levels will rationalize. We made a total of $5.2 million in capital investments in the quarter, including $2.2 million in production equipment and machinery and $2.7 million on construction and building improvements.

從長遠來看，我們仍然相信庫存水準將會合理化。本季我們共進行了 520 萬美元的資本投資，其中包括 220 萬美元的生產設備和機械投資以及 270 萬美元的建築和建築改進投資。

Capital expenditures in 2019 of $37.6 million were below our expectations of $46 million, and the difference was primarily related to delays in the construction of our plant in China. We expect most of these expenses to be incurred in 2020, although the timing within the year is still uncertain due to the coronavirus.

2019 年的資本支出為 3,760 萬美元，低於我們預期的 4,600 萬美元，差異主要與我們在中國的工廠建設延遲有關。我們預計大部分費用將在 2020 年發生，儘管由於冠狀病毒的影響，年內的具體時間仍不確定。

As Thompson mentioned, the COVID-19 outbreak in China continues to affect our operations there, although the situation is gradually returning to normal. Our factory in Ningbo is not located near the epicenter of the disease. But like many cities in China, the government there ordered all factory shutdown for an extended period following the Lunar New Year. In total, we were shut down for approximately 2.5 weeks beyond our normal holiday period. We have resumed operations there and are already operating at 70% of our normal capacity, which is improving steadily as staff are able to return to work.

正如湯普森所提到的，中國的新冠疫情仍在繼續影響我們在當地的業務，儘管情況正在逐步恢復正常。我們位於寧波的工廠並不位於疫情中心附近。但與中國許多城市一樣，那裡的政府下令所有工廠在農曆新年後長期停工。總的來說，我們關閉的時間比正常假期長了大約 2.5 週。我們已經在那裡恢復運營，目前營運能力已達到正常水平的 70%，隨著員工重返工作崗位，營運能力正在穩步提高。

As far as financial impact, there are 3 areas that we are monitoring: one, reduced manufacturing capacity in the quarter due to the shutdown and lower-than-typical headcount in the factory; two, additional expenses incurred as a result of the outbreak; and three, supply chain issues. As many of our suppliers are in China, we are working closely with them as they return to work to assess whether they will be able to supply necessary raw materials for our production. At this point, the vast majority of our suppliers in China have returned to work, and we currently believe that we will not have constraints on our production capacity in Q1 due to virus-related supply chain disruption.

就財務影響而言，我們正在監控三個方面：一是由於工廠停工和員工人數低於正常水平，導致本季度製造能力下降；二、因疫情影響產生的額外費用；三是供應鏈問題。由於我們的許多供應商都在中國，因此在他們復工期間，我們正在與他們密切合作，以評估他們是否能夠為我們的生產提供必要的原材料。目前，我們在中國的絕大多數供應商已經恢復工作，我們目前認為，第一季我們的生產能力不會因為病毒相關的供應鏈中斷而受到限制。

In order to reduce the impact of the shutdown on our customers, we have taken measures to increase production at our factories in Taiwan and in the U.S. The flexibility that we have in maintaining multiple manufacturing locations is an essential part of our strategy, and our ability to ramp production outside of China has allowed us to offer product to certain customers whose regular suppliers were more acutely affected by the virus than we have been. Our production cost in Taiwan and the U.S. are typically higher than in China, so this may also temporarily pressure margins. But as China returns to full operations, we anticipate this margin pressure will be short-lived. So while we have many challenges in dealing with this very fluid situation, we feel that our diversified manufacturing strategy and relatively high level of automation have allowed us to address these challenges proactively.

為了減少停工對客戶的影響，我們已採取措施提高台灣和美國工廠的產量。維持多個生產地點的靈活性是我們策略的重要組成部分，而我們在中國以外地區提高產量的能力使我們能夠向某些客戶提供產品，這些客戶的常規供應商受到的病毒影響比我們更嚴重。我們在台灣和美國的生產成本通常高於中國，因此這也可能暫時給利潤帶來壓力。但隨著中國恢復全面運營，我們預計這種利潤壓力將是短暫的。因此，儘管我們在應對這種非常不穩定的情況時面臨許多挑戰，但我們認為，多元化的製造策略和相對較高的自動化水平使我們能夠主動應對這些挑戰。

Moving now to our Q1 outlook. We expect Q1 revenue to be between $43 million and $47 million and non-GAAP gross margin to be in the range of 23% to 25%. Non-GAAP net loss is expected to be in the range of $6.8 million to $8.3 million and non-GAAP loss per share between $0.34 per share and $0.41 per share using a weighted average basic share count of approximately 20.3 million shares.

現在轉到我們的第一季展望。我們預計第一季營收在 4,300 萬美元至 4,700 萬美元之間，非 GAAP 毛利率在 23% 至 25% 之間。以約 2,030 萬股的加權平均基本股數計算，非公認會計準則淨虧損預計在 680 萬美元至 830 萬美元之間，非公認會計準則每股虧損預計在 0.34 美元至 0.41 美元之間。

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

說完這些，我會把話題交還給接線員，進行問答環節。操作員？

(Operator Instructions) The first question comes from Samik Chatterjee of JPMorgan.

（操作員指示）第一個問題來自摩根大通的 Samik Chatterjee。

This is actually Bharat on for Samik. So the first question I had on the data center side, it looks like the 100-gig revenues were up sequentially quite a bit. And then if I'm not wrong, you highlighted 3 data center customers that were greater than 10%. So that one large hyperscale customer that we had talked about in the last call that had a higher inventory and was at reduced spending levels, so are you seeing that return to normal? And are you seeing normal CapEx levels return from that customer?

這實際上是對 Samik 的 Bharat on。因此，我對資料中心的第一個疑問是，看起來 100Gig 的收入連續成長了不少。如果我沒記錯的話，您重點介紹了 3 位佔比超過 10% 的資料中心客戶。因此，我們在上次電話會議中談到的一位大型超大規模客戶，其庫存較高，支出水平較低，您是否看到這種情況恢復正常？您是否看到該客戶的資本支出水準恢復正常？

So just to clarify, during the quarter, we had 2 10% or greater customers in the data center segment that were 39% and 28%, respectively. So not 3, but 2. With respect to the -- we did have for the year, we had 3 data center customers, just to clarify. So 2 in the fourth quarter and 3 for the year. I would say the -- as we noted in our prepared remarks, 2 of our data center customers are increasing their orders, and 1 continues to order from us but with a reduced level from what it had been historically.

因此需要澄清的是，在本季度，我們在資料中心領域擁有 2 個 10% 或更高的客戶，分別為 39% 和 28%。所以不是 3 個，而是 2 個。就我們今年確實擁有的而言，我們有 3 個資料中心客戶，只是為了澄清。因此第四季有 2 個，全年有 3 個。我想說的是——正如我們在準備好的評論中所指出的，我們的 2 個資料中心客戶正在增加訂單，還有 1 個客戶繼續向我們訂購，但數量比歷史上有所減少。

Okay. Yes. And then one follow-up I have is the new 400-gig design win that you talked about. How should we -- can you quantify probably the magnitude of that? And how should we think about the benefit of that coming through? Do you expect that meaningfully come -- starts to benefit the revenue towards the later half of this year? Or that's more a 2021 kind of story?

好的。是的。然後我要跟進的是您談到的新的 400 千兆設計勝利。我們應該如何－您能量化這個程度嗎？我們該如何看待這項措施帶來的好處？您是否預計這會在今年下半年開始大幅增加收入？或者這更像是 2021 年的故事？

We may see some contribution late this year. I'm expecting it, frankly, to be more of a 2021 ramp, but it could come early as later this year depending on how things play out. This particular win is a sizable opportunity for us. But I think more than the absolute dollars that could come from this win, I think it really is a testament that the technology that we have is playing well with customers. As we noted in our prepared remarks, we have a number of ongoing qualifications with other customers. And I think this provides some tangible evidence that the product is working as intended, and customers are accepting the product and the pricing and other aspects of the product that we have. So we're -- we think it demonstrates our capabilities, and we're excited about the other qualifications that we have ongoing now.

我們可能會在今年稍後看到一些貢獻。坦白說，我預計它更像是 2021 年的一個成長點，但也可能在今年稍後出現，這取決於事態的發展。這次勝利對我們來說是一個難得的機會。但我認為，除了這次勝利可能帶來的絕對金錢利益之外，我認為這確實證明了我們所擁有的技術正在很好地滿足客戶的需求。正如我們在準備好的演講中提到的那樣，我們與其他客戶之間存在一些持續的資格認證。我認為這提供了一些切實的證據，證明產品正在按預期運行，並且客戶接受產品以及我們的定價和其他方面。因此，我們認為這證明了我們的能力，並且我們對目前正在進行的其他資格認證感到興奮。

(Operator Instructions) The next question comes from Joe Flynn of Craig-Hallum.

（操作員指示）下一個問題來自 Craig-Hallum 的 Joe Flynn。

I'm on for Richard Shannon. Just a quick question regarding the 400-gig products. Would you be able to tell us if they're a 4-channel or 8-channel product design?

我支持理查德·香農。我只是想問一個關於 400-gig 產品的簡單問題。您能告訴我們它們是 4 通道還是 8 通道產品設計嗎？

It's a 4-channel design.

這是一個4通道設計。

Okay. And I guess, looking out forward, what does, like, the path to breakeven look like? Anything you can offer like, maybe like on sales levels, gross margin and maybe the main market drivers that will get you there?

好的。我想，展望未來，實現收支平衡的道路是什麼樣的？您能提供什麼資訊嗎，例如銷售水準、毛利率以及實現這一目標的主要市場驅動力？

Yes. I think, obviously, there's a couple of different knobs that we can turn. One is increasing gross margins, and the other is increasing revenue. I think our operating expenses are likely to be relatively well controlled at around this level. They may -- on a quarter-by-quarter basis, they may bounce around a little bit. But overall, I don't expect major changes in our operating expenses at this point. So really, it comes down to revenue increase in gross margin. And I think as far as revenue contribution, I think the main factors that we expect to see are improvement, especially in the back half of the year in our cable TV market. Q1 is always a seasonally down quarter for us in cable. And as we noted in our prepared remarks, we're also kind of natured in terms of industry revenue I believe, at least from the commentary that I've heard from other companies in the industry so far this reporting season. It seems like revenues are generally depressed across the cable TV space.

是的。我認為，顯然我們可以轉動幾個不同的旋鈕。一是增加毛利率，二是增加收入。我認為我們的營運費用可能會相對較好地控制在這個水平左右。它們可能——按季度計算，可能會出現一些波動。但總體而言，我預計目前我們的營運費用不會發生重大變化。所以實際上，這取決於毛利率的收入增加。我認為就收入貢獻而言，我們預計會看到的主要因素是改善，尤其是在今年下半年我們的有線電視市場。對於我們有線電視業務來說，第一季總是一個季節性的下滑季度。正如我們在準備好的評論中所指出的，我相信我們在行業收入方面也有一定的傾向性，至少從我在本報告季迄今為止從業內其他公司聽到的評論來看是如此。看起來整個有線電視領域的收入普遍處於低迷狀態。

We do believe that several MSOs are in the process of contemplating or making plans to begin upgrades later on in the year, and that should be good for the industry as a whole and hopefully, AOI, in particular, participating in that. We do think some of our newer technologies like Remote PHY, and some of our other newer products for the cable space could contribute positively to both, obviously, revenue and gross margins as well. So that's one factor, I think, that could lead us to improving conditions.

我們確實相信，幾家 MSO 正在考慮或計劃在今年稍後開始升級，這對整個行業來說應該是件好事，希望 AOI 能夠參與其中。我們確實認為，我們的一些較新技術（例如 Remote PHY）以及我們針對有線電視領域的一些其他較新產品顯然可以對收入和毛利率做出積極貢獻。所以我認為這是可以改善我們狀況的一個因素。

The other is continued growth in our 100-gig data center products. As you noted, in our 100 gig -- sorry, it wasn't you. It was -- previous question noted that the 100 gig was up sharply. It was nearly double what it was last quarter. And as long as that trend can continue, I think that's positive for us. It portends revenue growth as well.

另一個是我們100千兆資料中心產品的持續成長。正如你所說，在我們的 100 場演出中——抱歉，那不是你。先前的問題指出，100 千兆位元急劇上升。這一數字幾乎是上一季的兩倍。只要這種趨勢能夠持續下去，我認為這對我們來說就是正面的。這也預示著收入成長。

400 gig, as I noted in my answer to the previous question, is likely to be not that big a contributor in 2020, but longer term could meaningfully contribute to both revenue and gross margin and then the 5G network build-out.

正如我在回答上一個問題時所指出的，400Gig 可能不會在 2020 年產生那麼大的貢獻，但從長遠來看，它可能會為收入和毛利率以及 5G 網路建設做出有意義的貢獻。

Currently, I think with the coronavirus, that does put a little bit of a question mark on the pace of rollouts, particularly in China, where some of the early rollouts were expected to happen. But nevertheless, I think over the longer term, as we move past the virus-related concerns, that certainly should be positive for us in terms of revenue growth. We also think it could be positive in terms of gross margin. It depends a little bit on product mix there, but there's opportunities where we can extract higher gross margin certainly than our current levels there.

目前，我認為，由於冠狀病毒的影響，這確實給推廣速度打上了一點問號，特別是在中國，一些早期推廣預計將在中國進行。但儘管如此，我認為從長遠來看，隨著我們擺脫與病毒相關的擔憂，這對我們的收入成長來說肯定是積極的。我們也認為這對毛利率來說可能是正面的。這在一定程度上取決於那裡的產品組合，但我們有機會獲得比目前水平更高的毛利率。

So those are all the kind of knobs that we expect to turn and the market dynamics that are playing out. And overall, I think we're pretty optimistic that data center recovery is underway. Cable TV is still not recovering yet, but I think there's reason to be optimistic about the back half of the year. And then 5G should be a contributor to us as well. And all 3 of those things are kind of pointing in the right direction, if not immediately evident in this quarter.

這些都是我們期望轉動的旋鈕和正在發揮作用的市場動態。總的來說，我認為我們對資料中心的恢復非常樂觀。有線電視仍未復甦，但我認為有理由對今年下半年感到樂觀。那麼 5G 也應該對我們有所貢獻。儘管這三件事在本季度沒有立即顯現出來，但它們都指向了正確的方向。

(Operator Instructions) At this time, we have no further questions. And I will turn the call over to Dr. Thompson Lin for closing remarks.

（操作員指示）目前，我們沒有其他問題。現在我將把發言時間交給 Thompson Lin 博士，請他做最後發言。

Okay, and thank you for joining us today. As always, thank you to our investors, customers and employees for your continued support, and we look forward to see many of you at our upcoming investor conference at OFC.

好的，感謝您今天加入我們。像往常一樣，感謝我們的投資者、客戶和員工的持續支持，我們期待在即將於 OFC 舉行的投資者會議上見到你們。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。