祥茂光電 (AAOI) 2022 Q3 法說會逐字稿

Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics' Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好。我將成為您的會議接線員。在這個時候，我想歡迎大家參加應用光電的 2022 年第三季度收益電話會議。 （操作員說明）請注意，此事件正在記錄中。

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

我現在將把電話轉給 AOI 投資者關係部的 Lindsay Savarese。 Savarese 女士，你可以開始了。

Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics, and I am pleased to welcome you to AOI's Third Quarter 2022 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its third quarter 2022 financial results and provided its outlook for the fourth quarter of 2022. 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 the recording can be found on the Investor Relations section of the AOI website and will be archived for 1 year.

謝謝你。我是應用光電投資者關係部的 Lindsay Savarese，很高興歡迎您參加 AOI 的 2022 年第三季度財務業績電話會議。今天收市後，AOI 發布了一份新聞稿，宣布了其 2022 年第三季度財務業績，並提供了 2022 年第四季度的展望。該新聞稿也可在公司網站 ao-inc.com 上查閱。正在錄製此通話並進行網絡直播。錄音鏈接可在 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. Thompson will give an overview of AOI's Q3 results, and Stefan will provide financial details and the outlook for the fourth quarter of 2022. A question-and-answer session will follow our prepared remarks.

加入我們今天的電話會議的是 AOI 創始人、董事長兼首席執行官 Thompson Lin 博士；和 AOI 首席財務官兼首席戰略官 Stefan Murry 博士。 Thompson 將概述 AOI 的第三季度業績，Stefan 將提供財務細節和 2022 年第四季度的展望。問答環節將在我們準備好的評論之後進行。

Before we begin, I would like to remind you to review AOI's safe harbor statement. 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, levels of activity, performance or achievements of the company or its industry to differ materially from those expressed or implied in such forward-looking statements.

在開始之前，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、活動水平、公司或其行業的業績或成就與此類前瞻性陳述中明示或暗示的內容存在重大差異——看起來的陳述。

In some cases, you can identify forward-looking statements by terminology such as believes, forecasts, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will, potential or thinks or by the negative of those terms or other similar expressions that convey uncertainty of future events or outcomes. The company has based these forward-looking statements on its current expectations, assumptions, estimates and projections.

在某些情況下，您可以通過術語來識別前瞻性陳述，例如相信、預測、預期、估計、打算、預測、預期、計劃、可能、應該、可以、將、將、潛在或認為或這些的否定表達未來事件或結果的不確定性的術語或其他類似表達。公司基於其當前的預期、假設、估計和預測做出這些前瞻性陳述。

While the company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the company's control, including important factors such as risks related to the company's ability to complete the transaction described on this call on the proposed terms and schedule or at all; the risk that certain closing conditions may not be timely satisfied or waived; the failure or delay to receive the required regulatory or other government approvals relating to the transaction and the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction.

雖然公司認為這些預期、假設、估計和預測是合理的，但此類前瞻性陳述僅是預測，涉及已知和未知的風險和不確定性，其中許多超出公司的控制範圍，包括與風險相關的重要因素公司有能力按照提議的條款和時間表完成本次電話會議中描述的交易，或根本沒有能力；某些成交條件可能無法及時滿足或豁免的風險；未能或延遲收到與交易相關的監管或其他政府批准，以及可能導致交易終止的任何事件、變化或其他情況的發生。

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 fourth quarter of 2022. 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. 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, 2021, and quarterly reports on Form 10-Q.

前瞻性陳述還包括有關管理層對將我們的產品擴展到新市場的信念和預期以及客戶對我們創新的反應的陳述，以及有關公司 2022 年第四季度前景的陳述。根據法律，我們不承擔在本財報電話會議日期後以任何理由更新前瞻性陳述的義務，以使這些陳述符合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 2021 年 12 月 31 日的 10-K 表格年度報告和季度報告表格 10-Q 上的報告。

Also, all financial results and other financial measures 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，除非另有特別說明，否則今天討論的所有財務結果和其他財務指標均基於非公認會計原則。非 GAAP 財務指標不應單獨考慮或替代根據 GAAP 編制的結果。我們的 GAAP 和非 GAAP 措施之間的對賬以及關於我們為何提出非 GAAP 財務措施的討論都包含在我們網站上提供的收益新聞稿中。

I'd like to note, the date of our fourth quarter and full year 2022 earnings call is currently scheduled for February 23, 2023.

我想指出，我們第四季度和 2022 年全年收益電話會議的日期目前定於 2023 年 2 月 23 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 Applied Optoelectronics 的創始人、董事長兼首席執行官 Thompson Lin 博士。湯普森？

Thank you, Lindsay, and thank you for joining our call today. For the third quarter, while our revenue came in below our expectations, we delivered gross margins in line and a narrow non-GAAP loss per share than our expectations. As you may have seen, on September 15, we announced that we have entered into an agreement with Yuhan Optoelectronic Technology for the sale of our manufacturing facilities located in the People's Republic of China and certain assets related to AOI transceiver business and multiple-channel optical subassembly products for the Internet data center, telecom and FTTH markets for a purchase price of $150 million, less a holdback amount. We continue to anticipate that the transaction will be completed in 2023 and is subject to customary closing conditions and regulatory approvals.

謝謝你，Lindsay，謝謝你今天加入我們的電話會議。第三季度，雖然我們的收入低於我們的預期，但我們的毛利率與我們的預期一致，非公認會計準則每股虧損也比我們預期的要窄。如您所見，9 月 15 日，我們宣布已與宇瀚光電簽署協議，出售我們位於中華人民共和國的製造設施以及與 AOI 收發器業務和多通道光學相關的某些資產。互聯網數據中心、電信和 FTTH 市場的組件產品，購買價格為 1.5 億美元，減去保留金額。我們繼續預計該交易將在 2023 年完成，並取決於慣例成交條件和監管批准。

Early feedback from our customers has been positive. We believe that our capability in chip fabrication and the continuity of this supply chain is of utmost importance to our data center customers. And we believe most of them understand and appreciate the rationale behind the proposed divestiture of our transceiver manufacturing operation in the import. We believe this transition will generate significant proceeds, which will enable us to make serious investments in higher margin and higher growth opportunities.

我們客戶的早期反饋是積極的。我們相信，我們在芯片製造方面的能力和供應鏈的連續性對我們的數據中心客戶來說至關重要。我們相信，他們中的大多數人都理解並理解建議剝離我們在進口中的收發器製造業務的基本原理。我們相信這種轉變將產生可觀的收益，這將使我們能夠對更高的利潤率和更高的增長機會進行認真的投資。

Following the transaction, AOI will have a focused portfolio composed of leases with manufacturing facilities in Taiwan and Sugar Land, Texas. We will also maintain our CATV product portfolio, utilizing our current Taiwan facility for production as well as our current Ningbo facility on a contract basis. Lastly, we believe that the transaction will open up big opportunities for customer expansion with our existing data center laser business.

交易完成後，AOI 將擁有一個專注的投資組合，包括在台灣和德克薩斯州舒格蘭的製造設施的租賃。我們還將維持我們的 CATV 產品組合，利用我們現有的台灣工廠以及我們現有的寧波工廠在合同基礎上進行生產。最後，我們相信此次交易將為我們現有的數據中心激光業務拓展客戶提供巨大機遇。

Turning to our third quarter results. We delivered revenue of $56.7 million, slightly below our guidance range of $57 million to $60 million, due mainly to a faster-than-anticipated decline in 40G sales. We delivered non-GAAP gross margin of 18% at the high end of our guidance range of 16.5% to 18.5%. And a small non-GAAP loss per share of $0.26 relative to our guidance range of a loss of $0.27 to $0.32 due to better-than-expected operating expenses.

轉向我們的第三季度業績。我們實現了 5670 萬美元的收入，略低於我們 5700 萬美元至 6000 萬美元的指導範圍，主要是由於 40G 銷售額的下降快於預期。我們在 16.5% 至 18.5% 的指導範圍的高端實現了 18% 的非公認會計原則毛利率。由於運營費用好於預期，與我們的指導範圍 0.27 美元至 0.32 美元相比，每股非公認會計原則虧損 0.26 美元。

Total revenue in our CATV segment was a company record of $31.3 million, up 35% year-over-year and 32% sequentially as we continue to see robust demand in the CATV market. Total revenue for our data center products of $17.7 million decreased 26% year-over-year and 18% sequentially, largely due to a decline in 40G push [and nearing] the end of its life cycle.

由於我們繼續看到 CATV 市場的強勁需求，我們 CATV 部門的總收入達到了創紀錄的 3130 萬美元，同比增長 35%，環比增長 32%。我們數據中心產品的總收入為 1,770 萬美元，同比下降 26%，環比下降 18%，這主要是由於 40G 推動下降[並接近]其生命週期結束。

And 100G push is beginning to slowly decline as customers move to 400G. This was partially offset by an increase in 400G, which more than tripled sequentially from Q2. As anticipated, we believe that this increase in 400G is the beginning of the sustained trend of increase in revenue from this new product line.

隨著客戶轉向 400G，100G 的推動力開始緩慢下降。這被 400G 的增長部分抵消，較第二季度增長了兩倍多。正如預期的那樣，我們認為 400G 的增長是這一新產品線收入持續增長趨勢的開始。

With that, I will turn the call over to Stefan to review the details of our Q3 performance and outlook for Q4. Stefan.

有了這個，我將把電話轉給 Stefan，以審查我們第三季度業績的細節和第四季度的展望。斯特凡。

Thank you, Thompson.

謝謝你，湯普森。

As Thompson mentioned, while our revenue came in below our expectations, we delivered gross margin in line with our expectations and a smaller non-GAAP loss per share relative to our expectations. We're encouraged by the robust demand in the CATV environment, the strength we are seeing in the telecom market and the early shipments of our 400G products. Our total revenue for the third quarter increased 6% year-over-year to $56.7 million, which was slightly below our guidance range of $57 million to $60 million, primarily due to a faster-than-anticipated decline in 40G sales.

正如湯普森所說，雖然我們的收入低於我們的預期，但我們的毛利率符合我們的預期，並且相對於我們的預期而言，每股非公認會計準則虧損較小。我們對 CATV 環境的強勁需求、我們在電信市場看到的實力以及我們 400G 產品的早期出貨感到鼓舞。我們第三季度的總收入同比增長 6% 至 5670 萬美元，略低於我們 5700 萬美元至 6000 萬美元的指導範圍，這主要是由於 40G 銷售額的下降快於預期。

As Thompson mentioned, and as you may have seen, on September 15, we announced that we have entered into an agreement with Yuhan Optoelectronic Technology for the sale of our manufacturing facilities located in the People's Republic of China and certain assets related to our transceiver business and multichannel optical subassembly products for the data center, telecom and FTTH markets for a purchase price of $150 million, less a holdback amount that is variable depending on working capital and other conditions at the time of closing. Currently, it would be approximately $7 million, making the total cash consideration for the divestiture approximately $143 million.

正如 Thompson 提到的，您可能已經看到，9 月 15 日，我們宣布我們已與宇瀚光電簽署協議，出售我們位於中華人民共和國的製造設施以及與我們的收發器業務相關的某些資產以及用於數據中心、電信和 FTTH 市場的多通道光學組件產品，購買價格為 1.5 億美元，減去根據營運資金和交易完成時的其他條件而變化的保留金額。目前，這將是大約 700 萬美元，使剝離的總現金對價約為 1.43 億美元。

I will spend a few moments on today's call to provide more detail on the strategic rationale as well as to discuss what AOI looks like as a company post the close of the transaction. As a reminder, we continue to anticipate that the transaction will be completed in 2023 and is subject to customary closing conditions and regulatory approvals, including CFIUS and ODI.

我將在今天的電話會議上花一些時間來提供有關戰略原理的更多細節，並討論 AOI 作為一家公司在交易完成後的樣子。提醒一下，我們繼續預計該交易將在 2023 年完成，並須遵守慣例成交條件和監管批准，包括 CFIUS 和 ODI。

We believe that the transaction would have a number of benefits for AOI. First, it would allow us to concentrate our efforts on growing our higher-margin optical component chip business. Currently, the vast majority of the optical components produced in our Texas fab are used in the internal production of our transceivers. There are a number of transceiver manufacturers who are currently competitors of ours that we feel could become customers for our optical component products once we no longer compete with them on transceiver production. If successful, we believe that this transaction would allow us to unlock an additional potential market for our optical component products, which typically earn significantly higher gross margins.

我們相信該交易將為 AOI 帶來諸多好處。首先，這將使我們能夠集中精力發展利潤率更高的光學元件芯片業務。目前，我們德克薩斯工廠生產的絕大多數光學元件都用於我們收發器的內部生產。有許多收發器製造商目前是我們的競爭對手，我們認為一旦我們不再與他們在收發器生產上競爭，它們可能成為我們光學元件產品的客戶。如果成功，我們相信這項交易將使我們能夠為我們的光學元件產品打開一個額外的潛在市場，這些產品通常會獲得顯著更高的毛利率。

Second, we believe that this transaction may also unlock potential new revenue in China. Due to tensions with the U.S., many Chinese companies have a high degree of sensitivity to purchasing key components like transceivers from U.S. companies. We believe that putting our transceiver manufacturing business into the hands of a domestic Chinese owner should enable the new entity to gain additional business with domestic Chinese customers. The benefit to AOI is potentially greater sales of our optical component chips to be used in the production of transceivers for these new customers.

其次，我們認為本次交易也可能在中國釋放潛在的新收入。由於與美國的緊張關係，許多中國公司對從美國公司購買收發器等關鍵部件高度敏感。我們認為，將我們的收發器製造業務交到中國國內所有者手中，應該可以讓新實體獲得與中國國內客戶的更多業務。 AOI 的好處是我們的光學組件芯片的潛在銷售量增加，這些芯片將用於為這些新客戶生產收發器。

Third, we believe that reducing our dependence as a company on operations in China, given recent ongoing events, is prudent. The business environment there for U.S. companies has grown increasingly challenging, and there is no assurance that these tensions will ease in the foreseeable future.

第三，鑑於最近發生的事件，我們認為減少我們作為一家公司對中國業務的依賴是謹慎的做法。美國公司的商業環境變得越來越具有挑戰性，而且無法保證這些緊張局勢在可預見的未來會有所緩解。

Finally, the significant cash generated by the transaction would enable us to strengthen our balance sheet. It would also allow us to make investments and future product development in our existing markets as well as potential new ones.

最後，交易產生的大量現金將使我們能夠加強我們的資產負債表。它還將使我們能夠在現有市場以及潛在的新市場中進行投資和未來產品開發。

After the close of the transaction, we would retain our manufacturing facilities in Taiwan and Sugar Land, Texas. AOI would exit the data center transceiver market, and instead, we would focus our resources on our data center laser business, our CATV broadband business and manufacturing of optical components for other markets such as FTTH and sensing. We believe that these remaining businesses should generate free cash flow and can achieve EBITDA breakeven once the transaction closes.

交易完成後，我們將保留我們在台灣和德克薩斯州舒格蘭的製造設施。 AOI 將退出數據中心收發器市場，轉而將資源集中在數據中心激光業務、CATV 寬帶業務以及為其他市場（如 FTTH 和傳感）製造光學元件。我們認為，這些剩餘業務應能產生自由現金流，並在交易完成後實現 EBITDA 盈虧平衡。

Turning to what our revenue profile would look like once the transaction is closed. It is difficult to break out what percentage of our overall data center revenue is optical components versus transceivers, given that our optical components are used to manufacture our transceivers. However, based on our internal usage of in-house manufactured optical components, we estimate that roughly 15% of our data center revenue over the trailing 12 months ended September 30 is attributable to these optical components.

轉向交易完成後我們的收入狀況。鑑於我們的光學組件用於製造我們的收發器，因此很難分清我們數據中心總收入的百分比是光學組件還是收發器。然而，根據我們對內部製造的光學元件的內部使用，我們估計在截至 9 月 30 日的過去 12 個月中，我們數據中心收入的大約 15% 可歸因於這些光學元件。

In addition to this embedded component business, over the trailing 12 months, we've had direct sales of optical components of approximately $20 million. Post transaction, as noted above, we believe that there are significant opportunities to increase both our data center optical component revenue and our direct sales of optical components.

除了這項嵌入式組件業務，在過去的 12 個月中，我們的光學組件直接銷售額約為 2000 萬美元。如上所述，交易後，我們相信有很大的機會增加我們的數據中心光學元件收入和我們的光學元件直接銷售。

Lastly, with respect to our margin profile. While we cannot estimate with precision our margin structure after the transaction closes, we believe that at close or within a few quarters afterwards, we can achieve gross margins in the upper 20% range, perhaps approaching 30%.

最後，關於我們的保證金情況。雖然我們無法在交易完成後準確估計我們的利潤率結構，但我們相信在交易結束後或之後的幾個季度內，我們可以實現 20% 以上的毛利率，可能接近 30%。

Turning back to the quarter. We secured one new design win, which is in our telecom segment. The single design win in the quarter is lower than is typical, but we continue to have a robust pipeline for new qualifications that we expect to be completed over the next few quarters. We continue to see good customer traction on 400G. As we expected, orders began to ramp up in the third quarter, and we expect continued growth in shipments in Q4.

回到季度。我們獲得了一項新的設計勝利，這是在我們的電信部門。本季度的單一設計勝率低於典型水平，但我們繼續擁有強大的新資格管道，預計將在未來幾個季度完成。我們繼續在 400G 上看到良好的客戶吸引力。正如我們預期的那樣，訂單在第三季度開始增加，我們預計第四季度的出貨量將繼續增長。

Turning to our third quarter results. 55% of our Q3 revenue was from our CATV products, 31% was from our data center products, with the remaining 14% from FTTH, telecom and other. In our CATV products segment, the overall demand environment remains robust as MSOs, particularly in North America, continue purchasing additional networking products in order to upgrade their networks. CATV revenue in the third quarter was a company record of $31.3 million, which was up 35% year-over-year and 32% sequentially.

轉向我們的第三季度業績。我們第三季度收入的 55% 來自我們的 CATV 產品，31% 來自我們的數據中心產品，其餘 14% 來自 FTTH、電信和其他。在我們的 CATV 產品領域，整體需求環境依然強勁，因為 MSO（尤其是在北美）繼續購買額外的網絡產品以升級其網絡。第三季度 CATV 收入為公司創紀錄的 3130 萬美元，同比增長 35%，環比增長 32%。

Further out, we continue to have good visibility with CATV orders as we see our backlog stretching into mid-2023. We have significantly increased production capacity for our CATV products, demonstrated by our Q3 results, and we believe that we are well positioned to deliver on the demand that we are seeing.

再往前看，由於我們看到我們的積壓訂單一直延伸到 2023 年年中，我們繼續對 CATV 訂單保持良好的知名度。我們的 CATV 產品的生產能力顯著提高，我們的第三季度業績證明了這一點，我們相信我們有能力滿足我們所看到的需求。

Our Q3 data center revenue came in at $17.7 million, down 26% year-over-year and 18% sequentially. In the third quarter, 72% of our data center revenue was from our 100G products, 13% was from our 40G transceiver products and 3% was from our 200G and 400G transceiver products.

我們第三季度的數據中心收入為 1770 萬美元，同比下降 26%，環比下降 18%。第三季度，我們數據中心收入的 72% 來自我們的 100G 產品，13% 來自我們的 40G 收發器產品，3% 來自我們的 200G 和 400G 收發器產品。

Now turning to our telecom segment. Revenue from our telecom products of $6.8 million was up 32% year-over-year and up 9% sequentially. Telecom revenue continues to be driven mostly by 5G-related products, and we believe that revenue from these products will remain relatively consistent over the next few quarters.

現在轉向我們的電信部門。我們電信產品的收入為 680 萬美元，同比增長 32%，環比增長 9%。電信收入繼續主要由 5G 相關產品推動，我們相信這些產品的收入在未來幾個季度將保持相對穩定。

For the third quarter, our top 10 customers represented 86% of revenue, flat with Q3 of the prior year. We had 2 10% or greater customers in the third quarter, 1 in the CATV market and 1 in the data center market. These customers contributed 50% and 16% of total revenue, respectively.

第三季度，我們的前 10 名客戶佔收入的 86%，與去年第三季度持平。第三季度我們有 2 個 10% 或更多的客戶，1 個在 CATV 市場，1 個在數據中心市場。這些客戶分別貢獻了總收入的 50% 和 16%。

In Q3, we generated non-GAAP gross margin of 18%, which was at the high end of our guidance range of 16.5% to 18.5% and was up from 16.7% in Q2 of 2022 and compared to 19.9% in Q3 of 2021. The increase in gross margin was driven mainly by the anticipated impact of the cost reduction efforts that we initiated early in the year.

第三季度，我們的非美國通用會計準則毛利率為 18%，處於我們指導範圍 16.5% 至 18.5% 的高端，高於 2022 年第二季度的 16.7% 和 2021 年第三季度的 19.9%。毛利率的增長主要是由於我們在年初啟動的降低成本工作的預期影響。

Total non-GAAP operating expenses in the third quarter were $19.4 million or 34.3% of revenue, down as a total percentage of revenue from $19.3 million or 36.3% of revenue in Q3 of the prior year. R&D expenses decreased 8% year-over-year to $8.9 million.

第三季度非美國通用會計準則運營費用總額為 1940 萬美元，佔收入的 34.3%，低於去年第三季度的 1930 萬美元，佔收入的 36.3%。研發費用同比下降 8% 至 890 萬美元。

Looking forward, we expect non-GAAP operating expenses to increase in Q4 by about $3 million. This increase is driven by approximately $3.3 million or approximately $0.12 per share of additional employee bonus accrual related to the China divestiture. This catch-up accrual in Q4 is necessary to conform our total year-end bonus accrual to current expectations after the announcement of the transaction, but it is not expected to recur after Q4. Looking ahead, we expect non-GAAP operating expenses to moderate next year to between $19 million and $20 million per quarter.

展望未來，我們預計第四季度非 GAAP 運營費用將增加約 300 萬美元。這一增長是由與中國業務剝離相關的額外員工獎金應計約 330 萬美元或每股約 0.12 美元推動的。第四季度的追加應計是必要的，以使我們的年終獎金應計總額符合交易公告後的當前預期，但預計不會在第四季度之後再次發生。展望未來，我們預計明年非公認會計準則運營費用將放緩至每季度 1900 萬美元至 2000 萬美元之間。

Non-GAAP operating loss in the third quarter was $9.3 million compared to an operating loss of $8.7 million in Q3 in the prior year. GAAP net loss for Q3 was $15.6 million or a loss of $0.56 per basic share compared with a GAAP net loss of $15.8 million or a loss of $0.58 per basic share in Q3 of 2021.

第三季度非公認會計原則的營業虧損為 930 萬美元，而去年第三季度的營業虧損為 870 萬美元。第三季度的 GAAP 淨虧損為 1560 萬美元或每股基本股虧損 0.56 美元，而 2021 年第三季度的 GAAP 淨虧損為 1580 萬美元或每股基本股虧損 0.58 美元。

On a non-GAAP basis, net loss for Q3 was $7.1 million or a loss of $0.26 per basic share, which was better than our guidance range of a loss of $7.6 million to $9.1 million or a loss per share in the range of $0.27 to $0.32 per basic share, and compares to a net loss of $5.3 million or a loss of $0.20 per basic share in Q3 of the prior year. The basic shares outstanding used for computing the net loss in Q3 were $27.8 million.

在非公認會計原則的基礎上，第三季度的淨虧損為 710 萬美元或每股基本虧損 0.26 美元，好於我們的指導範圍，即虧損 760 萬美元至 910 萬美元或每股虧損 0.27 美元至 0.27 美元。每股基本股 0.32 美元，而去年第三季度淨虧損 530 萬美元或每股基本股虧損 0.20 美元。用於計算第三季度淨虧損的基本流通股為 2780 萬美元。

Turning now to the balance sheet. We ended the third quarter with $34.6 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $40.7 million at the end of the second quarter. We ended the quarter with total debt of $65.1 million, up from $63.8 million last quarter.

現在轉向資產負債表。我們在第三季度結束時的現金、現金等價物、短期投資和受限現金總額為 3460 萬美元。相比之下，第二季度末為 4070 萬美元。我們在本季度末的總債務為 6510 萬美元，高於上一季度的 6380 萬美元。

As of September 30, we had $94.3 million in inventory compared to $98.2 million at the end of Q2. Inventory decreased primarily due to utilization of inventory for larger shipments during the quarter.

截至 9 月 30 日，我們的庫存為 9430 萬美元，而第二季度末為 9820 萬美元。庫存減少主要是由於本季度將庫存用於更大的出貨量。

We made a total of $0.8 million in capital investments in the third quarter, almost all in construction and building improvements. Looking ahead for the year, we expect between $4 million and $5 million in total CapEx.

我們在第三季度總共進行了 80 萬美元的資本投資，幾乎全部用於建築和建築改進。展望今年，我們預計總資本支出在 400 萬至 500 萬美元之間。

Moving now to our Q4 outlook. We expect Q4 revenue to be between $58 million and $64 million and non-GAAP gross margin to be in the range of 17% to 19.5%. Non-GAAP net loss is expected to be in the range of $8.1 million to $9.8 million, and non-GAAP loss per basic share between $0.28 and $0.34, using a weighted average basic share count of approximately 28.7 million shares.

現在轉到我們的第四季度展望。我們預計第四季度收入將在 5800 萬美元至 6400 萬美元之間，非美國通用會計準則毛利率將在 17% 至 19.5% 之間。使用約 2870 萬股的加權平均基本股數，非 GAAP 淨虧損預計在 810 萬美元至 980 萬美元之間，非 GAAP 每股基本股虧損在 0.28 美元至 0.34 美元之間。

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

有了這個，我會把它交還給接線員進行問答環節。操作員？

(Operator Instructions) We have a question from [Ethan Widell] of B. Riley.

（操作員說明）我們有一個來自 B. Riley 的 [Ethan Widell] 的問題。

This is [Ethan] calling in for Dave Kang. I just have one on my end. So we've seen some hyperscalers announcing pretty robust CapEx spend plans surrounding their data infrastructure build-out. So I was hoping you could provide a little additional color regarding overall optical demand, especially as it pertains to hyperscalers.

這是 [Ethan] 打電話給 Dave Kang。我這邊只有一個。因此，我們看到一些超大規模企業圍繞其數據基礎設施建設宣布了相當穩健的資本支出計劃。所以我希望你能提供一些關於整體光學需求的額外顏色，尤其是與超大規模器有關的情況。

Sure. Well, as we noted, I think what we're seeing in the market right now with -- particularly with the hyperscalers is that our 400G business is beginning to ramp. As we noted in our prepared remarks earlier, I mean, it was up more than 3x sequentially. And we have a pretty strong order backlog for those products, which we've anticipated and I think we've communicated that the last couple of quarters that we expected to see 400 gig ramping in the second half of the year. So it's good that we're actually experiencing what we projected to see earlier in the year.

當然。好吧，正如我們所指出的，我認為我們現在在市場上看到的——特別是對於超大規模企業來說，我們的 400G 業務開始增長。正如我們在之前準備好的評論中指出的那樣，我的意思是，它連續上漲了 3 倍以上。我們對這些產品有相當多的訂單積壓，我們已經預料到了，我認為我們已經傳達了過去幾個季度我們預計在今年下半年會看到 400 gig 的增長。因此，我們實際上正在經歷我們預計在今年早些時候看到的情況，這很好。

So I think the spending environment for the hyperscalers generally is, as you noted, fairly robust in terms of optical component spend. We're monitoring that based on our viewpoint moving forward on sort of macro conditions and how that's going to affect things. But right now, where we stand, it looks like the spending plans for next year are starting to crystallize a little bit on the part of our customers. And again, we think the 400-gig ramp is good evidence that, that's going to be a positive for us moving forward.

因此，正如您所指出的，我認為超大規模生產商的支出環境在光學元件支出方面通常相當穩健。我們正在根據我們對宏觀條件的看法以及這將如何影響事情進行監控。但是現在，就我們的立場而言，明年的支出計劃似乎開始在我們的客戶方面有所具體化。再一次，我們認為 400 gig 的斜坡是很好的證據，這將是我們前進的積極因素。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Dr. Thompson Lin for closing remarks.

（操作員說明）我們的問答環節到此結束。我想把會議轉回給 Thompson Lin 博士做閉幕詞。

Okay. Thank you for joining us today. As always, we want to extend a thank you to our investors, customers and employees for your continued support. We look forward to updating you on our progress next quarter.

好的。感謝您今天加入我們。一如既往，我們要感謝我們的投資者、客戶和員工一直以來的支持。我們期待在下個季度向您通報我們的進展情況。

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。您現在可以斷開連接。