祥茂光電 (AAOI) 2019 Q4 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 Fourth Quarter and Full Year 2019 Earnings Conference Call.

此時，歡迎大家參加應用光電2019年第四季度及全年財報電話會議。

(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 will now turn the call over to Lindsay Savarese, Investor Relations for AOI.

我現在將把電話轉給 AOI 投資者關係部的 Lindsay Savarese。

Ms. Savarese, you may begin.

Savarese 女士，您可以開始了。

Thank you.

謝謝你。

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.

我是 Lindsay Savarese，Applied Optoelectronics 的投資者關係部門，很高興歡迎您參加 AOI 2019 年第四季度和全年財務業績電話會議。

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.

今天收市後，AOI 發布了一份新聞稿，公佈了其 2019 年第四季度和全年的財務業績，並提供了 2020 年第一季度的展望。

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 section 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.

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 Q4 results, and Stefan will provide financial details and the outlook to the first quarter of 2020.

Thompson 將概述 AOI 的第四季度業績，Stefan 將提供財務細節和 2020 年第一季度的展望。

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 statements.

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，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存在重大差異。

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.

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 innovation as well as statements regarding the company's outlook for the first quarter of 2020.

前瞻性陳述還包括關於管理層對我們產品進入新市場的擴張的信念和期望的陳述、客戶對我們創新的反應以及關於公司 2020 年第一季度展望的陳述。

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 our actual results or to changes in the company's expectations.

除法律要求外，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，以使這些陳述符合我們的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 financials discussed today are on a non-GAAP basis, unless specifically noted otherwise.

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

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

非 GAAP 財務措施不應孤立地考慮或替代根據 GAAP 編制的結果。

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

我們的 GAAP 和非 GAAP 措施之間的協調以及對我們為什麼提出非 GAAP 財務措施的討論包含在我們網站上提供的收益新聞稿中。

Before moving to the financial results, I'd like to announce that AOI management will 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.

在談到財務業績之前，我想宣布 AOI 管理層將於 3 月 3 日出席 Raymond James 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舉辦一場投資者會議。

This discussion will be webcast live, and a link to the webcast will be available on the Investor Relations section of the AOI website.

該討論將進行網絡直播，網絡直播的鏈接將在 AOI 網站的投資者關係部分提供。

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

我們希望有機會在那裡見到你們中的許多人。

Additionally, I'd like to note the date of our first quarter 2020 earnings call is currently scheduled for May 7, 2020.

此外，我想指出，我們 2020 年第一季度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.

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

謝謝 Lindsay，也謝謝大家今天加入我們。

We delivered revenue in line with our guidance range and achieved better-than-expected results on the bottom line.

我們交付的收入符合我們的指導範圍，並且在利潤方面取得了好於預期的結果。

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.

AOI 第四季度收入為 4870 萬美元，非 GAAP 毛利率為 27.6%，非 GAAP 每股淨虧損為 0.18 美元。

During the quarter, the data center demand environment remained consistent with our expectations.

本季度，數據中心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.

雖然我們繼續看到我們的 2 個超大規模數據中心客戶的訂單模式有所改善，但隨著我們客戶的需求繼續穩定，我們仍然保持謹慎樂觀。

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.

我們很高興地報告說，我們最近贏得了一家一級網絡設備製造商的 400G 產品設計，我們對看到客戶對該產品的興趣感到鼓舞。

In CATV, the overall CATV demand environment continued to be soft.

有線電視方面，整體有線電視需求環境持續偏軟。

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.

雖然我們預計這種情況會在短期內影響我們的表現，但我們相信 AOI 仍然處於有利地位，因為我們的創新技術隨著 MSO 轉向下一代架構。

We continue to make good progress in diversifying our customer base.

我們在多元化客戶群方面繼續取得良好進展。

And during the quarter, we secured 9 design wins, with 8 out of 9 design wins coming from new customers.

在本季度，我們贏得了 9 項設計，其中 9 項設計中有 8 項來自新客戶。

We had 31 total design wins for the year, which is nearly 20% higher than our total design wins in 2018.

我們全年獲得 31 項設計勝利，比 2018 年的設計勝利總數高出近 20%。

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.

我們相信，這種新定制設計更容易贏得活動的趨勢對我們的技術領域和製造執行產生了有利影響，它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.

在將電話轉給 Stefan 以了解我們展望中的更多細節之前，我想首先解決因 COVID-19 在中國爆發而導致的冠狀病毒爆發。

We experienced change in our operation there in Q1.

我們在第一季度在那裡的運營發生了變化。

Our operation in Ningbo was shut down for approximately 2.5 weeks beyond our normal Lunar New Year holidays.

我們在寧波的業務在我們正常的農曆新年假期後關閉了大約 2.5 週。

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.

我們目前以大約 70% 的正常產能重新啟動並運行，隨著我們的員工能夠重返工作崗位，產能正在穩步提高。

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.

為了減少停工對我們客戶的影響，我們已採取措施增加我們在台灣和美國的工廠的產量。雖然我們預計第一季度的收入會減少並產生一些額外費用，但我們正在努力將這些影響降至最低.

We have included our current estimates of the impact in our guidance.

我們已將我們當前對影響的估計包括在我們的指南中。

However, I am cautious that there are still significant unknowns with respect to the extent and duration of the impact to operations.

然而，我謹慎地認為，在對運營的影響程度和持續時間方面仍然存在重大未知數。

At this point, we expect that these issues will be temporary as the situation in China gradually gets back to normal.

在這一點上，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。

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.

Stefan 將提供更多詳細信息，但我當時想感謝我們在中國的員工和領導層在應對這一迅速發展的局勢方面的奉獻精神。

And our thoughts go out to all those individuals in China and around the world who are suffering from this illness.

我們的心與所有在中國和世界各地遭受這種疾病折磨的人同在。

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.

我們對 400G 產品的吸引力以及我們的幾個數據中心客戶持續復甦的跡象感到鼓舞。

There also, we continue to be pleased with our design wins.

此外，我們繼續對我們的設計勝利感到滿意。

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.

我們仍然專注於為我們的客戶提供創新技術，並準備好在市場改善時抓住我們面前的機會。

We are looking forward to showcase our technology solution and meeting with many of you at OFC next month.

我們期待著在下個月的 OFC 上展示我們的技術解決方案並與你們中的許多人會面。

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

有了這個，我將把電話轉給 Stefan，審查我們第四季度業績和第一季度展望的細節。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

Our Q4 financial performance and demand environment were broadly in line with our expectations.

我們第四季度的財務業績和需求環境基本符合我們的預期。

Total revenue for the fourth quarter was $48.7 million, which was at the high end of our guidance range.

第四季度的總收入為 4870 萬美元，處於我們指導範圍的高端。

Our data center revenue came in at $39.3 million compared with $42.6 million (sic) [$41.6 million] in Q4 of last year.

我們的數據中心收入為 3930 萬美元，而去年第四季度為 4260 萬美元（原文如此）[4160 萬美元]。

In the fourth quarter, 49% of our data center revenue was from our 40G transceiver products and 42% was from our 100G products.

第四季度，我們數據中心收入的 49% 來自我們的 40G 收發器產品，42% 來自我們的 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.

正如 Thompson 所提到的，我們很高興地報告我們的 400G 產品與 1 級網絡設備製造商的設計勝利，我們在季度末收到了這一消息，並且對該產品產生的興趣和客戶參與度感到滿意。

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.

我們將繼續積極與其他客戶進行資格認證，以滿足他們的 400G 數據中心收發器需求，並期待隨著這些活動在接下來的幾個季度達到高潮，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.

數據中心市場動態與過去幾個季度類似，與第三季度相比，第四季度略有改善。

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.

我們繼續看到 2 個超大規模數據中心客戶出現適度復甦，而 1 個客戶繼續從我們這裡購買產品，但需求減少。

Looking ahead, we remain cautiously optimistic about the demand picture in the near term.

展望未來，我們對近期的需求前景保持謹慎樂觀。

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.

我們的數據中心部門在本季度獲得了 7 項設計勝利，其中 7 項勝利中有 4 項來自新的數據中心運營商客戶。

We are very pleased with this new customer traction and expect to begin generating revenue from this new relationship this quarter.

我們對這種新的客戶吸引力感到非常高興，並希望本季度開始從這種新關係中產生收入。

Turning to our cable television products segment.

轉向我們的有線電視產品部門。

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.

CATV 產品的收入為 680 萬美元，而去年第四季度為 1270 萬美元，這主要是受北美 MSO 客戶需求疲軟的推動。

We continue to believe that MSOs are delaying upgrades pending the availability of new technologies such as DOCSIS 4.0.

我們仍然認為，MSO 正在推遲升級，等待 DOCSIS 4.0 等新技術的可用性。

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.

展望未來，在我們討論的需求動態和典型的季節性因素的推動下，我們相信這種環境將持續到今年上半年。

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.

雖然我們相信這些情況會影響我們的近期前景，但我們相信隨著這些新技術的推出，AOI 仍然處於有利地位，因為我們擁有 Remote PHY 等關鍵技術。

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，而去年第四季度為 280 萬美元，這符合我們的預期，這主要是由於某些傳統產品的銷售額下降，部分被為 5G 網絡部署設計的新產品的銷售額增加所抵消.

In addition to the 7 design wins in the data center segment, we had 1 design win in our telecom segment during Q4.

除了數據中心領域的 7 項設計勝利外，我們在第四季度的電信領域也獲得了 1 項設計勝利。

This design win is with a network equipment manufacturer of 5G networking equipment.

該設計贏得了一家 5G 網絡設備的網絡設備製造商。

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.

本季度，我們 81% 的收入來自數據中心產品，14% 來自 CATV 產品，其餘 5% 來自 FTTH、電信和其他。

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.

第四季度，我們在數據中心市場擁有 2 個 10% 或更多的客戶，分別貢獻了總收入的 39% 和 28%。

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.

全年，我們有 4 個 10% 或更高的客戶，其中 3 個在數據中心領域，分別貢獻了 32%、24% 和 11%，還有 1 個在 CATV 市場，貢獻了總收入的 10%。

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.

總的來說，在第四季度，我們在 6 個客戶中獲得了 9 個新的設計勝利，其中 5 個是 AOI 的新客戶，使我們在 2019 年的設計勝利總數從 2018 年的 26 個增加到 31 個。

We made good progress this year in diversifying our revenue base with a declining revenue concentration.

今年，我們在收入基礎多元化方面取得了良好進展，收入集中度下降。

The concentration of revenue among our top 10 customers decreased from 92.9% in 2018 to 88.1% in 2019.

我們的前 10 大客戶的收入集中度從 2018 年的 92.9%下降到 2019 年的 88.1%。

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.

在第四季度，我們的前 10 大客戶合計占我們收入的 87.5%，而去年第四季度占我們收入的 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.

在第四季度，我們的毛利率為 27.6%，高於去年第四季度的 24.7%，並且在我們 26.5% 至 29% 的指導範圍內，這主要是由於運營效率和有利的產品組合。

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.

本季度總運營費用為 1940 萬美元，佔收入的 39.9%，而去年同期為 1870 萬美元，佔收入的 31.8%。

We had $0.3 million in direct economic incentives from the Chinese government in Q4.

第四季度，我們從中國政府獲得了 30 萬美元的直接經濟激勵。

Operating loss in the fourth quarter was $6 million compared to an operating loss of $4.2 million in Q4 last year.

第四季度的營業虧損為 600 萬美元，而去年第四季度的營業虧損為 420 萬美元。

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.

第四季度的 GAAP 淨虧損為 3540 萬美元或每股基本股虧損 1.76 美元，而去年第四季度的 GAAP 淨虧損為 860 萬美元或每股基本股虧損 0.43 美元。

The increased net loss was primarily driven by a valuation allowance against certain of our deferred tax assets totaling $25.7 million.

淨虧損增加的主要原因是我們對某些遞延稅資產的估值備抵總額為 2570 萬美元。

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.

在非 GAAP 基礎上，第四季度稅後淨虧損為 360 萬美元或每股基本股虧損 0.18 美元，這有利於我們指導範圍內的虧損 430 萬至 590 萬美元或每股 0.21 至 0.30 美元，與去年第四季度淨虧損 50 萬美元或每股基本股虧損 0.02 美元。

The basic shares outstanding used for computing the net loss in Q4 were $20.1 million.

用於計算第四季度淨虧損的已發行基本股為 2010 萬美元。

Turning now to the balance sheet.

現在轉向資產負債表。

We ended the fourth quarter with $67 million in total cash, cash equivalents, short-term investments and restricted cash.

第四季度結束時，我們的現金總額、現金等價物、短期投資和受限現金為 6700 萬美元。

This compares with $72.4 million at the end of Q3 and reflects $3.2 million in cash used for operations.

相比之下，第三季度末為 7240 萬美元，反映出用於運營的現金為 320 萬美元。

As of December 31, we had $85 million in inventory compared to $82.1 million in Q3.

截至 12 月 31 日，我們的庫存為 8500 萬美元，而第三季度為 8210 萬美元。

The increase in inventory was mainly driven by inventory buildup ahead of the Lunar New Year.

庫存增加主要是由於農曆新年前的庫存增加所致。

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.

儘管這是計劃好的，但我們相信，隨著我們在冠狀病毒關閉後繼續恢復正常運營，這些額外的庫存將對我們有用。

Longer term, we continue to believe that inventory levels will rationalize.

從長遠來看，我們仍然相信庫存水平將合理化。

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.

本季度我們的資本投資總額為 520 萬美元，其中 220 萬美元用於生產設備和機械，270 萬美元用於建築和建築改造。

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.

2019 年的資本支出為 3760 萬美元，低於我們預期的 4600 萬美元，差異主要與我們在中國的工廠建設延誤有關。

We expect most of these expenses to be incurred in 2020, although the timing within the year is still uncertain due to the coronavirus.

我們預計這些費用中的大部分將在 2020 年發生，儘管由于冠狀病毒，年內的時間仍不確定。

As Thompson mentioned, the COVID-19 outbreak in China continues to affect our operations there, although the situation is gradually returning to normal.

正如湯普森所說，儘管情況正在逐漸恢復正常，但在中國爆發的 COVID-19 疫情繼續影響我們在那裡的運營。

Our factory in Ningbo is not located near the epicenter of the disease.

我們在寧波的工廠不在疫情中心附近。

But like many cities in China, the government there ordered all factory shutdown for an extended period following the Lunar New Year.

但與中國的許多城市一樣，那裡的政府下令所有工廠在農曆新年後的較長時間內停工。

In total, we were shut down for approximately 2.5 weeks beyond our normal holiday period.

總的來說，我們在正常假期之外關閉了大約 2.5 週。

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.

我們已經在那裡恢復運營，並且已經以正常產能的 70% 運營，隨著員工能夠重返工作崗位，產能正在穩步提高。

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.

就財務影響而言，我們正在監測 3 個方面：第一，由於停工和工廠員工人數低於正常水平，本季度的製造能力下降；二、因疫情發生的額外費用；第三，供應鏈問題。

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.

由於我們的許多供應商都在中國，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。

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.

至此，我們在中國的絕大多數供應商已經復工，我們目前認為我們不會因為與病毒相關的供應鏈中斷而對第一季度的產能造成限制。

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.

為了減少停工對我們客戶的影響，我們已採取措施增加台灣和美國工廠的產量。我們在維持多個製造地點方面的靈活性是我們戰略的重要組成部分，我們的能力在中國境外增加生產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病毒的影響比我們以前更嚴重。

Our production cost in Taiwan and the U.S. are typically higher than in China, so this may also temporarily pressure margins.

我們在台灣和美國的生產成本通常高於中國，因此這也可能暫時壓低利潤率。

But as China returns to full operations, we anticipate this margin pressure will be short-lived.

但隨著中國恢復全面運營，我們預計這種利潤率壓力將是短暫的。

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.

因此，儘管我們在應對這種非常多變的情況時面臨許多挑戰，但我們認為我們多元化的製造戰略和相對較高的自動化水平使我們能夠積極應對這些挑戰。

Moving now to our Q1 outlook.

現在轉到我們的第一季度展望。

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%.

我們預計第一季度收入將在 4300 萬美元至 4700 萬美元之間，非 GAAP 毛利率將在 23% 至 25% 之間。

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.

非 GAAP 淨虧損預計在 680 萬美元至 830 萬美元之間，非 GAAP 每股虧損在每股 0.34 美元至 0.41 美元之間，加權平均基本股數約為 2030 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) The first question comes from Samik Chatterjee of JPMorgan.

（操作員說明）第一個問題來自摩根大通的 Samik Chatterjee。

This is actually Bharat on for Samik.

這實際上是 Bharat 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.

所以我在數據中心方面遇到的第一個問題，看起來 100 兆收入連續增長了很多。

And then if I'm not wrong, you highlighted 3 data center customers that were greater than 10%.

然後，如果我沒記錯的話，您強調了 3 個數據中心客戶超過 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?

因此，我們在上次電話會議中談到的一個大型超大規模客戶擁有更高的庫存並且支出水平降低，那麼您是否看到這種情況恢復正常？

And are you seeing normal CapEx levels return from that customer?

您是否看到該客戶返回正常的資本支出水平？

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.

所以澄清一下，在本季度，我們在數據中心領域有 2 個 10% 或更多的客戶，分別為 39% 和 28%。

So not 3, but 2. With respect to the -- we did have for the year, we had 3 data center customers, just to clarify.

所以不是 3 個，而是 2 個。關於 - 我們今年確實有 3 個數據中心客戶，只是為了澄清一下。

So 2 in the fourth quarter and 3 for the year.

所以第四季度有 2 個，全年有 3 個。

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.

我會說——正如我們在準備好的評論中指出的那樣，我們的 2 個數據中心客戶正在增加他們的訂單，1 個繼續向我們訂購，但與歷史水平相比有所下降。

Okay.

好的。

Yes.

是的。

And then one follow-up I have is the new 400-gig design win that you talked about.

然後我有一個後續行動是你談到的新的 400-gig 設計勝利。

How should we -- can you quantify probably the magnitude of that?

我們應該如何 - 你能量化它的程度嗎？

And how should we think about the benefit of that coming through?

我們應該如何考慮這樣做的好處？

Do you expect that meaningfully come -- starts to benefit the revenue towards the later half of this year?

您是否期望有意義的到來 - 開始使今年下半年的收入受益？

Or that's more a 2021 kind of story?

或者這更像是 2021 年的故事？

We may see some contribution late this year.

我們可能會在今年晚些時候看到一些貢獻。

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.

坦率地說，我預計它更像是 2021 年的斜坡，但它可能最早在今年晚些時候到來，具體取決於事情的進展。

This particular win is a sizable opportunity for us.

這次特別的勝利對我們來說是一個巨大的機會。

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.

但我認為，除了這場胜利可能帶來的絕對收入之外，我認為這確實證明了我們擁有的技術在客戶中表現良好。

As we noted in our prepared remarks, we have a number of ongoing qualifications with other customers.

正如我們在準備好的評論中指出的那樣，我們與其他客戶有許多持續的資格。

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.

我認為這提供了一些切實的證據，證明產品正在按預期工作，客戶正在接受我們的產品以及產品的定價和其他方面。

So we're -- we think it demonstrates our capabilities, and we're excited about the other qualifications that we have ongoing now.

所以我們 - 我們認為它展示了我們的能力，我們對我們現在正在進行的其他資格感到興奮。

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

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

I'm on for Richard Shannon.

我支持理查德·香農。

Just a quick question regarding the 400-gig products.

關於 400-gig 產品的簡單問題。

Would you be able to tell us if they're a 4-channel or 8-channel product design?

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.

好的。

And I guess, looking out forward, what does, like, the path to breakeven look like?

我想，展望未來，實現收支平衡的道路是什麼樣的？

Anything you can offer like, maybe like on sales levels, gross margin and maybe the main market drivers that will get you there?

你能提供什麼，比如銷售水平、毛利率以及可能讓你達到目標的主要市場驅動因素？

Yes.

是的。

I think, obviously, there's a couple of different knobs that we can turn.

我認為，顯然，我們可以轉動幾個不同的旋鈕。

One is increasing gross margins, and the other is increasing revenue.

一是提高毛利率，二是提高收入。

I think our operating expenses are likely to be relatively well controlled at around this level.

我認為我們的運營費用可能會控制在這個水平附近。

They may -- on a quarter-by-quarter basis, they may bounce around a little bit.

他們可能 - 在逐個季度的基礎上，他們可能會反彈一點。

But overall, I don't expect major changes in our operating expenses at this point.

但總的來說，我預計此時我們的運營費用不會發生重大變化。

So really, it comes down to revenue increase in gross margin.

所以實際上，這歸結為毛利率的收入增長。

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.

而且我認為就收入貢獻而言，我認為我們期望看到的主要因素是改善，尤其是在我們的有線電視市場的下半年。

Q1 is always a seasonally down quarter for us in cable.

第一季度對我們的電纜來說始終是一個季節性下降的季度。

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.

正如我們在準備好的評論中指出的那樣，我相信我們在行業收入方面也有一定的天性，至少從本報告季到目前為止我從業內其他公司那裡聽到的評論來看是這樣。

It seems like revenues are generally depressed across the cable TV space.

似乎整個有線電視領域的收入普遍低迷。

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.

我們確實相信，一些 MSO 正在考慮或製定計劃在今年晚些時候開始升級，這對整個行業應該是有利的，希望 AOI 能夠參與其中。

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.

我們確實認為我們的一些新技術，如 Remote PHY，以及我們用於有線電視領域的其他一些新產品，顯然也可以對收入和毛利率做出積極貢獻。

So that's one factor, I think, that could lead us to improving conditions.

因此，我認為，這是一個可能導致我們改善條件的因素。

The other is continued growth in our 100-gig data center products.

另一個是我們 100 兆數據中心產品的持續增長。

As you noted, in our 100 gig -- sorry, it wasn't you.

正如您所指出的，在我們的第 100 場演出中——抱歉，不是您。

It was -- previous question noted that the 100 gig was up sharply.

這是 - 之前的問題指出 100 場演出急劇增加。

It was nearly double what it was last quarter.

幾乎是上一季度的兩倍。

And as long as that trend can continue, I think that's positive for us.

只要這種趨勢能夠持續下去，我認為這對我們來說是積極的。

It portends revenue growth as well.

它也預示著收入增長。

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指出的那樣，400 gig 在 2020 年的貢獻可能不會那麼大，但從長遠來看可能會對收入和毛利率以及 5G 網絡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.

目前，我認為對于冠狀病毒，這確實給推出的速度打上了一點問號，特別是在中國，一些早期的推出預計會發生。

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.

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，就收入增長而言，這肯定對我們有利。

We also think it could be positive in terms of gross margin.

我們還認為，就毛利率而言，這可能是積極的。

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.

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.

因此，這些都是我們期望轉動的旋鈕以及正在發揮作用的市場動態。

And overall, I think we're pretty optimistic that data center recovery is underway.

總的來說，我認為我們對數據中心恢復正在進行中非常樂觀。

Cable TV is still not recovering yet, but I think there's reason to be optimistic about the back half of the year.

有線電視仍未恢復，但我認為有理由對下半年感到樂觀。

And then 5G should be a contributor to us as well.

然後 5G 也應該為我們做出貢獻。

And all 3 of those things are kind of pointing in the right direction, if not immediately evident in this quarter.

所有這 3 件事都指向了正確的方向，即使在本季度沒有立即顯現出來。

(Operator Instructions) At this time, we have no further questions.

（操作員說明）此時，我們沒有進一步的問題。

And I will turn the call over to Dr. Thompson Lin for closing remarks.

我將把電話轉給 Thompson Lin 博士作結束語。

Okay, and thank you for joining us today.

好的，感謝您今天加入我們。

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.

一如既往，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 OFC 投資者會議上見到你們中的許多人。

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.

您現在可以斷開連接。