祥茂光電 (AAOI) 2022 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 Applied Optoelectronics Fourth Quarter and Full Year 2022 Earnings Conference Call. (Operator Instructions) Please note that this call is being recorded.

下午好。我將是您的會議運營商。此時，歡迎大家參加應用光電公司 2022 年第四季度和全年收益電話會議。 （操作員說明）請注意，此通話正在錄音中。

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，您可以開始了。

Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's Fourth Quarter and Full Year 2022 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its fourth quarter and full year 2022 financial results and provided its outlook for the first quarter of 2023. The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live.

謝謝。我是應用光電投資者關係部門的 Lindsay Savarese，很高興歡迎您參加 AOI 2022 年第四季度和全年財務業績電話會議。今天收市後，AOI 發布了一份新聞稿，宣布了其第四季度和 2022 年全年的財務業績，並提供了 2023 年第一季度的展望。該新聞稿也可在公司網站 ao-inc.com 上查閱。此通話正在錄音和網絡直播中。

A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year. 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 for the first quarter of 2023. A question-and-answer session will follow up with her remarks.

錄音鏈接可在 AOI 網站的投資者關係部分找到，並將存檔一年。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 將概述 AOI 的第四季度業績，Stefan 將提供財務細節和 2023 年第一季度的展望。她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 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 industry to differ materially from those expressed or implied in such forward-looking statements.

在我們開始之前，我想提醒您閱讀 AOI 的安全港聲明。在今天的電話會議上，管理層將發表前瞻性陳述。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，可能導致公司的實際結果、活動水平、業績或公司或行業的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聲明。

In some cases, you can identify forward-looking statements by terminology, such as believe, forecast, anticipate, estimate, intend, predict, expect, plan, may, should, could, would, will, potential or things 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. 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.

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、期望、計劃、可能、應該、可能、會、將、潛在或事物或負面的傳達未來事件或結果不確定性的術語或其他類似表達方式。公司根據其當前的預期、假設、估計和預測做出這些前瞻性陳述。雖然公司認為這些預期、假設、估計和預測是合理的。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，其中許多風險和不確定性超出了公司的控制範圍，包括重要因素，例如與公司完成本次電話會議中描述的交易的能力相關的風險以及擬議的條款和時間表或根本沒有。

The risk that certain closing conditions may not be timely satisfied or raised. The failure or delay to receive their required regulatory or other government approvals related to the transaction, any occurrence of any event, change or other circumstances that could give rise to the termination of the transaction. 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 first quarter of 2023.

某些成交條件可能無法及時滿足或提出的風險。未能或延遲獲得與交易相關的監管或其他政府批准，任何可能導致交易終止的事件、變化或其他情況的發生。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 2023 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 confirm 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, 2022. Also, our 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.

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，以確認這些陳述與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 2022 年 12 月 31 日止年度的 10-K 表格年度報告。此外，除非另有特別說明，否則我們今天討論的財務業績和其他財務指標均基於非公認會計原則。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. I'd like to note the date of our first quarter earnings call is currently scheduled for May 4 , 2023.

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。我想指出，我們第一季度財報電話會議的日期目前定於 2023 年 5 月 4 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. Thank you for joining our call today. We are pleased to report fourth quarter results with revenue in line with our expectations, gross margin above our expectations and a non-GAAP loss per share better than our expectations. We continue to see strong demand in the CATV market and generated the highest quarterly CATV revenue in the company's history in Q4.

謝謝你，林賽。感謝您今天加入我們的電話會議。我們很高興地報告第四季度業績，收入符合我們的預期，毛利率高於我們的預期，非 GAAP 每股虧損也好於我們的預期。我們繼續看到有線電視市場的強勁需求，並在第四季度創造了公司歷史上最高的季度有線電視收入。

During the fourth quarter, we delivered revenue of $61.6 million, in line with our guidance range of $58 million to $64 million. We delivered non-GAAP gross margin of 21.4%, above our guidance range of 17.5% to 19.5%, driven by our target cost reductions and favorable product mix. Our non-GAAP loss per share was $0.19,about our guidance range of a loss of $0.28 to $0.34.

第四季度，我們實現了 6160 萬美元的收入，符合我們 5800 萬至 6400 萬美元的指導範圍。我們的非美國通用會計準則毛利率為 21.4%，高於我們 17.5% 至 19.5% 的指導範圍，這得益於我們的目標成本削減和有利的產品組合。我們的非 GAAP 每股虧損為 0.19 美元，大約是我們 0.28 美元至 0.34 美元虧損的指導範圍。

Total revenue in our CATV segment was a company record of $38.2 million up 53% year-over-year and 22% sequentially of a strong Q3 as we continue to see robust demand in the CATV market. Total revenue for our data center products of $16.5 million decreased 35% year-over-year and 7% sequentially as customer continues to manage inventory level of older products during the transition to 400G. This was partially offset by an increase in 400G revenue, which more than doubled sequentially. In Q4, we signed an agreement with a major hyperscale data center operator for a development program to make next-generation lasers for their data center, both for 400G and beyond.

由於我們繼續看到有線電視市場的強勁需求，我們有線電視部門的總收入達到創紀錄的 3820 萬美元，同比增長 53%，比強勁的第三季度增長 22%。由於客戶在向 400G 過渡期間繼續管理舊產品的庫存水平，我們數據中心產品的總收入為 1650 萬美元，同比下降 35%，環比下降 7%。這部分被 400G 收入的增長所抵消，400G 收入環比增長了一倍多。在第 4 季度，我們與一家大型超大規模數據中心運營商簽署了一項開發計劃協議，為其數據中心製造下一代 400G 及更高激光器。

While the development of this new product will take several quarters to be complete, we view this counter award as validation of the value of our core laser fabrication ability.

雖然這款新產品的開發需要幾個季度才能完成，但我們將此次反獲獎視為對我們核心激光製造能力價值的認可。

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

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。斯特凡？

Thank you, Thompson. As Thompson mentioned, we are pleased to report our fourth quarter results with revenue in line with our expectations, gross margin above our expectations and a non-GAAP loss per share better than our expectations. We continue to see strong demand in the CATV market and generated the highest quarterly CATV revenue in the company's history in Q4.

謝謝你，湯普森。正如 Thompson 所提到的，我們很高興地報告我們第四季度的業績，收入符合我們的預期，毛利率高於我們的預期，非 GAAP 每股虧損也好於我們的預期。我們繼續看到有線電視市場的強勁需求，並在第四季度創造了公司歷史上最高的季度有線電視收入。

Before turning to the quarter, I wanted to provide an update on the transaction that we announced last September that we have entered into an agreement with Yuhan Optoelectronics 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.

在談到本季度之前，我想提供有關我們去年 9 月宣布的交易的最新情況，我們已與宇漢光電科技就出售我們位於中華人民共和國的製造設施以及與相關資產相關的某些資產達成協議我們的收發器業務和麵向數據中心、電信和 FTTH 市場的多通道光學組件產品，收購價格為 1.5 億美元。

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. We continue to advance work on these required regulatory approvals. As part of this process, Yuhan has disclosed additional details regarding their financials, including new details regarding the composition of their ownership group. And based on this new information, we continue to be optimistic that regulatory approval of this transaction, both in the U.S. and China is achievable.

提醒一下，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部門的批准，包括 CFIUS 和 ODI。我們將繼續推進這些必需的監管批准工作。作為此過程的一部分，雨涵披露了有關其財務狀況的更多詳細信息，包括有關其所有權集團構成的新詳細信息。基於這一新信息，我們繼續樂觀地認為，這項交易在美國和中國的監管批准是可以實現的。

Turning to the quarter. Our total revenue for the fourth quarter increased 13% year-over-year to $61.6 million, which was in line with our guidance range of $58 million to $64 million. As Thompson noted earlier, we made progress on our strategy to focus our efforts on our higher-margin laser business during Q4. We are pleased to announce that during the fourth quarter, we signed an agreement with a major hyperscale data center operator for a development program to make next-generation lasers for their data center, both for 400G and beyond.

轉向季度。我們第四季度的總收入同比增長 13% 至 6160 萬美元，符合我們 5800 萬至 6400 萬美元的指導範圍。正如 Thompson 之前指出的那樣，我們在第四季度將精力集中在利潤率更高的激光業務上的戰略取得了進展。我們很高興地宣布，在第四季度，我們與一家大型超大規模數據中心運營商簽署了一項開發計劃協議，為他們的數據中心製造下一代激光器，包括 400G 及以上。

This customer has agreed to provide approximately $4 million in R&D funding for the first phase of this project, with the first $3 million paid in Q4. Currently, this is reflected on our balance sheet as deferred revenue. We expect to recognize this revenue throughout the next several quarters as we progress through the development program. We believe that the significant financial investment made by this customer provides further validation of our strategy of focusing on our core high-margin laser business, even as we advanced with our plans to divest the data center optical transceiver business to Yuhan as discussed above.

該客戶已同意為該項目的第一階段提供約 400 萬美元的研發資金，首批 300 萬美元已於第四季度支付。目前，這在我們的資產負債表上反映為遞延收入。隨著我們在開發計劃中取得進展，我們希望在接下來的幾個季度中確認這一收入。我們相信，該客戶進行的重大財務投資進一步驗證了我們專注於核心高利潤激光業務的戰略，即使我們推進了上述將數據中心光收發器業務剝離給玉涵的計劃。

Turning back to the quarter. We secured 2 design wins, both of which were in our CATV business. For the full year, we secured 12 new design wins compared to 20 design wins in 2021. During the fourth quarter, 62% of our revenue was from our CATV products, 27% was from our data center products, with the remaining 11% 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 fourth quarter was a company record of $38.2 million, which was up 53% year-over-year and 22% sequentially.

回到季度。我們贏得了 2 項設計大獎，均屬於我們的 CATV 業務。全年，我們獲得了 12 項新設計中標，而 2021 年有 20 項設計中標。第四季度，我們 62% 的收入來自有線電視產品，27% 來自數據中心產品，其餘 11% 來自FTTH、電信等。在我們的 CATV 產品領域，整體需求環境依然強勁，因為 MSO，特別是在北美，繼續購買額外的網絡產品以升級他們的網絡。第四季度 CATV 收入創下公司紀錄，達到 3820 萬美元，同比增長 53%，環比增長 22%。

Looking ahead, as a reminder, our CATV results are typically negatively impacted in Q1 by the loss of production days that occurs during the Lunar New Year holiday in China, where most of our CATV products are produced. We continue to have good visibility throughout the first half of the year and are carefully monitoring MSO plans to move to DOCSIS 4.0 networks, perhaps as early as later this year. Broadly speaking, we're encouraged by some of the commentary that we have heard regarding the DOCSIS 4.0 transition as it relates to long-term continued investment in network upgrades. For example, as you may have seen in December, Charter announced plans to spend approximately $5.5 billion over the next several years on network upgrades. We believe much of the spending will be on outside plant equipment such as nodes and amplifiers, which are the products that have been driving AOI's cable TV business growth over the last several years.

展望未來，需要提醒的是，我們的有線電視業績通常在第一季度受到中國農曆新年假期期間生產天數減少的負面影響，我們的大部分有線電視產品都是在中國生產的。我們在今年上半年繼續保持良好的知名度，並正在仔細監控 MSO 遷移到 DOCSIS 4.0 網絡的計劃，最早可能在今年晚些時候。從廣義上講，我們聽到的一些關於 DOCSIS 4.0 過渡的評論讓我們感到鼓舞，因為它與網絡升級的長期持續投資有關。例如，正如您在 12 月看到的那樣，Charter 宣布計劃在未來幾年內花費大約 55 億美元用於網絡升級。我們認為大部分支出將用於節點和放大器等外部工廠設備，這些產品在過去幾年一直推動 AOI 的有線電視業務增長。

Announcements like that from Charter bolster our belief that the network upgrades that have begun will continue for the next several years, which we believe will continue to drive our CATV business. Our Q4 data center revenue came in at $16.5 million, down 35% year-over-year and 7% sequentially as customers continue to manage inventory levels of older products during the transition to 400G. This was partially offset by an increase in 400G revenue, which more than doubled sequentially.

像 Charter 這樣的公告增強了我們的信念，即已經開始的網絡升級將在未來幾年繼續進行，我們相信這將繼續推動我們的 CATV 業務。我們第四季度的數據中心收入為 1650 萬美元，同比下降 35%，環比下降 7%，因為客戶在向 400G 過渡期間繼續管理舊產品的庫存水平。這部分被 400G 收入的增長所抵消，400G 收入環比增長了一倍多。

In the fourth quarter, 71% of our data center revenue was from our 100G products, 11% was from our 40G transceiver products and 8% was from our 200G and 400G transceiver products. Now turning to our Telecom segment. Revenue from our telecom products of $6.4 million was up 94% year-over-year and down 7% sequentially. Looking ahead, we currently expect telecom revenue in Q1 to be slightly down due to the Lunar New Year and then expect to see slow improvement in this segment as deployments of 5G products continue. For the fourth quarter, our top 10 customers represented 90% of revenue, up from 88.4% in Q4 of last year. We have 2 greater than 10% customers, one in the CATV market and one in the data center market. These customers contributed 58% and 16% of total revenue, respectively. For the full year, we had 2, 10% or greater customers, one in the CATV market and one in the data center market. These customers contributed 47% and 18% of total revenue, respectively.

第四季度，我們數據中心收入的 71% 來自我們的 100G 產品，11% 來自我們的 40G 收發器產品，8% 來自我們的 200G 和 400G 收發器產品。現在轉向我們的電信部門。我們的電信產品收入為 640 萬美元，同比增長 94%，環比下降 7%。展望未來，我們目前預計第一季度的電信收入將因農曆新年而略有下降，然後隨著 5G 產品的部署繼續，預計該部門將緩慢改善。第四季度，我們的前 10 大客戶佔收入的 90%，高於去年第四季度的 88.4%。我們有 2 個超過 10% 的客戶，一個在 CATV 市場，一個在數據中心市場。這些客戶分別貢獻了總收入的 58% 和 16%。全年，我們有 2 個、10% 或更多的客戶，一個在 CATV 市場，一個在數據中心市場。這些客戶分別貢獻了總收入的 47% 和 18%。

In Q4, we generated non-GAAP gross margin of 21.4%, which was above our guidance range of 17.5% to 19.5% and was up from 18% in Q3 of 2022 and up from 17.6% in Q4 of 2021. The increase in gross margin was driven mainly by our favorable product mix and our cost reduction efforts. We continue to be very focused on improving our bottom line. We believe the key to this is improving our gross margin performance.

在第四季度，我們的非美國通用會計準則毛利率為 21.4%，高於我們 17.5% 至 19.5% 的指導範圍，高於 2022 年第三季度的 18% 和 2021 年第四季度的 17.6%。毛利率的增長利潤主要是由我們有利的產品組合和我們降低成本的努力推動的。我們繼續非常專注於提高我們的底線。我們認為關鍵在於提高我們的毛利率表現。

In addition to our ongoing cost reduction efforts, during the quarter, we exited several low-profit legacy products. Additionally, we have shifted R&D resources away from some low-margin projects to focus our resources on areas where we can maximize margin. Recently, we have also had some success in executing price increases with some customers, which will help to relieve some of the margin pressure we've been experiencing. Together, we expect these efforts to cumulatively improve our gross margin and bottom line performance over the next several quarters, and our management team and operating teams are all focused intensely on this improvement.

除了我們正在進行的降低成本的努力外，在本季度，我們還退出了幾款低利潤的遺留產品。此外，我們已將研發資源從一些低利潤項目轉移，以將我們的資源集中在我們可以最大化利潤的領域。最近，我們在與一些客戶的價格上漲方面也取得了一些成功，這將有助於緩解我們一直面臨的一些利潤壓力。我們預計這些努力將在未來幾個季度累積提高我們的毛利率和底線業績，我們的管理團隊和運營團隊都非常關注這一改進。

Total non-GAAP operating expenses in the fourth quarter were $21 million or 34.2% of revenue, which compared to $16.9 million or 31% of revenue in Q4 of the prior year. R&D expenses increased 7% year-over-year to $8.9 million. As we noted in our last earnings call, our non-GAAP operating expenses in Q4 included approximately $3 million or $0.11 per share of additional employee bonus accrual related to the China divestiture. These payments were authorized by the Board in order to retain key employees who are critical to the success of the divestiture.

第四季度非美國通用會計準則運營費用總額為 2100 萬美元，佔收入的 34.2%，而去年第四季度為 1690 萬美元，佔收入的 31%。研發費用同比增長 7% 至 890 萬美元。正如我們在上次財報電話會議中指出的那樣，我們在第四季度的非 GAAP 運營費用包括與中國資產剝離相關的大約 300 萬美元或每股 0.11 美元的額外員工獎金。這些付款由董事會授權，以留住對剝離成功至關重要的關鍵員工。

These additional bonus payments are not expected to occur in 2023. Looking forward, we continue to expect non-GAAP operating expenses will moderate this year to between $19 million and $20 million per quarter. Non-GAAP operating loss in the fourth quarter was $7.9 million, compared to an operating loss of $7.3 million in Q4 of the prior year. GAAP net loss for Q4 was $20.3 million or a loss of $0.71 per basic share compared with a GAAP net loss of $14.5 million or a loss of $0.54 per basic share in Q4 of 2021.

這些額外的獎金預計不會在 2023 年發生。展望未來，我們繼續預計非 GAAP 運營費用今年將放緩至每季度 1900 萬美元至 2000 萬美元。第四季度的非美國通用會計準則營業虧損為 790 萬美元，而去年第四季度的營業虧損為 730 萬美元。第四季度的 GAAP 淨虧損為 2030 萬美元或每股基本股虧損 0.71 美元，而 2021 年第四季度的 GAAP 淨虧損為 1450 萬美元或每股基本股虧損 0.54 美元。

On a non-GAAP basis, net loss for Q4 was $5.4 million or a loss of $0.19 per basic share, which was better than our guidance range of a loss of $8.1 million to $9.8 million or a loss per share in the range of $0.28 to $0.34 per basic share and compares to a net loss of $5.5 million or a loss of $0.20 per basic share in Q4 of the prior year. The basic shares outstanding used for computing the net loss in Q4 were 28.5 million.

在非 GAAP 基礎上，第四季度淨虧損為 540 萬美元或每股基本股虧損 0.19 美元，好於我們虧損 810 萬美元至 980 萬美元或每股虧損 0.28 美元至 0.28 美元至每股虧損的指導範圍每股基本股 0.34 美元，而去年第四季度淨虧損 550 萬美元或每股基本股虧損 0.20 美元。用於計算第四季度淨虧損的已發行基本股為 2850 萬股。

Turning now to the balance sheet. We ended the fourth quarter with $35.6 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $34.6 million at the end of the third quarter. We ended the quarter with total debt, excluding convertible debt of $69.4 million, up from $65.1 million last quarter. As of December 31, we had $79.9 million in inventory, compared to $94.3 million at the end of Q3. Inventory decreased primarily due to utilization of inventory for customer orders, along with the impact of exchange rates on our foreign inventory. We made a total of $0.8 million in capital investments in the fourth quarter, bringing our total CapEx for the year to $3.4 million, which is down from $11.6 million in 2021, reflecting lower capital needs as most of the equipment necessary to produce our current generation products was purchased last year.

現在轉向資產負債表。第四季度結束時，我們的現金、現金等價物、短期投資和受限現金總額為 3560 萬美元。相比之下，第三季度末為 3460 萬美元。我們在本季度末的總債務（不包括可轉換債務）為 6940 萬美元，高於上一季度的 6510 萬美元。截至 12 月 31 日，我們的庫存為 7990 萬美元，而第三季度末為 9430 萬美元。庫存減少主要是由於客戶訂單的庫存利用率，以及匯率對我們國外庫存的影響。我們在第四季度總共進行了 80 萬美元的資本投資，使我們全年的資本支出總額從 2021 年的 1160 萬美元下降到 340 萬美元，這反映出資本需求較低，因為生產我們這一代產品所需的大部分設備產品是去年購買的。

Moving now to our Q1 outlook. We expect Q1 revenue to be between $52 million and $55 million and non-GAAP gross margin to be in the range of 23% to 24%. Non-GAAP net loss is expected to be in the range of $4.4 million to $5.3 million and non-GAAP loss per basic share between $0.15 and $0.19 using a weighted average basic share count of approximately 28.9 million shares.

現在轉到我們的第一季度展望。我們預計第一季度收入將在 5200 萬美元至 5500 萬美元之間，非 GAAP 毛利率將在 23% 至 24% 之間。非 GAAP 淨虧損預計在 440 萬美元至 530 萬美元之間，非 GAAP 每股基本虧損虧損在 0.15 美元至 0.19 美元之間，加權平均基本股數約為 2890 萬股。

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

有了這個，我會把它轉回給接線員進行問答環節。操作員？

(Operator Instructions) Our first question comes from Simon Leopold from Raymond James.

（操作員說明）我們的第一個問題來自 Raymond James 的 Simon Leopold。

I appreciate the seasonal factors in terms of the Chinese New Year effect on the March quarter. And so I guess what I'm struggling with is how to really think about maybe the normalized run rate given that you didn't provide a full year forecast, can you give us some color or quantification about how you're thinking about the full year, particularly for the cable unit?

我很欣賞春節對三月季度影響的季節性因素。所以我想我正在努力解決的問題是，鑑於您沒有提供全年預測，如何真正考慮標準化運行率，您能否給我們一些關於您如何考慮全年的顏色或量化年，特別是電纜單元？

Well, as we noted in our prepared remarks, we did -- we had an all-time record in terms of cable TV production in Q4. I think part of that is probably some orders that were pulled into Q4 from Q1 just because they knew that there would be an impact from Lunar New Year and wanted to make sure that they had adequate inventory on hand. So that number is probably a little bit high for an average run rate, but it's certainly what we were able to produce in Q4. So consistent with demand, I'd say we'd probably come in at a number that's slightly less than that perhaps but not too far off after we finish off after we get out of the Lunar New Year period. That being said, I mean, we're actually monitoring purely carefully the activity around DOCSIS 4.0 or at least specifically the MSO plans to move to upgraded networks.

好吧，正如我們在準備好的評論中指出的那樣，我們做到了——我們在第四季度的有線電視製作方面創下了歷史新高。我認為部分原因可能是一些訂單從第一季度拖到第四季度，因為他們知道農曆新年會產生影響，並希望確保手頭有足夠的庫存。所以這個數字對於平均運行率來說可能有點高，但這肯定是我們在第四季度能夠生產的。與需求一致，我想說我們可能會在農曆新年結束後結束時進入一個略低於這個數字但不會太遠的數字。話雖這麼說，我的意思是，我們實際上純粹是在仔細監控圍繞 DOCSIS 4.0 的活動，或者至少特別是 MSO 計劃遷移到升級網絡。

It's something that we spend a lot of time developing products for, and we're excited about that transition. So we're waiting to see whether that occurs later this year or early into next year and how that will impact volumes both on the current generation of 1.2 gig products and the next-generation 1.8 gig products.

這是我們花費大量時間開發產品的東西，我們對這種轉變感到興奮。因此，我們正在等待觀察這是否發生在今年晚些時候或明年初，以及這將如何影響當前一代 1.2 gig 產品和下一代 1.8 gig 產品的數量。

And just to make sure I understand what you're alluding to there. If we were to make the assumption that DOCSIS 4.0 spending were to ramp in 2024, the activity in '23 seems like maybe preparation for that and therefore, 2024 should give you further growth if we think that's when DOCSIS 4.0 ramps. Is that the right interpretation?

只是為了確保我明白你在那裡暗示的是什麼。如果我們假設 DOCSIS 4.0 支出將在 2024 年增加，那麼 23 年的活動似乎可能是為此做準備，因此，如果我們認為 2024 年是 DOCSIS 4.0 增加的時候，那麼 2024 年應該會進一步增長。這是正確的解釋嗎？

Yes. I think that's an accurate description of it. The DOCSIS 4.0 components in addition to -- in addition to being just kind of more complicated in their own right because of the greater frequency response associated with DOCSIS 4.0. The products also -- especially the amplifier products contain a great deal of intelligence in the products, which is something new that hasn't really been incorporated into those products. So the bottom line is that the cost and price of those products is higher than the DOCSIS -- the current generation DOCSIS 3.1 products. And so that alone -- independent of volume plans by the MSOs, just the cost increase alone would certainly tend to drive higher revenue numbers.

是的。我認為這是對它的準確描述。 DOCSIS 4.0 組件除了 - 由於與 DOCSIS 4.0 相關的更大頻率響應而本身更複雜。這些產品 - 特別是放大器產品在產品中包含大量智能，這是尚未真正融入這些產品的新事物。所以最重要的是，這些產品的成本和價格高於 DOCSIS——當前一代的 DOCSIS 3.1 產品。因此，僅此一項——獨立於 MSO 的數量計劃，單是成本增加肯定會推動更高的收入數字。

And can you give us the names of the customers that were over 10% the cable TV vertical and the data center vertical?

你能告訴我們超過 10% 的有線電視垂直和數據中心垂直的客戶的名字嗎？

Sure. ATX Networks and Microsoft.

當然。 ATX 網絡和微軟。

Our next question comes from Tim Savageaux from Northland Capital Markets.

我們的下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

Congrats on the results, especially on the gross margin side. And I guess I'll start there and I think your drivers for Q4 are pretty straightforward and talking about mix, I guess, that's more capable and less datacom. My first question, though, was on the Q1 gross margin guide, which is higher still despite this seasonal pullback in revenue. I wonder if you could -- I don't know if that's some of that NRE funding coming in? Or if you can talk about what the drivers might be there?

祝賀結果，尤其是在毛利率方面。我想我會從那裡開始，我認為你的第四季度驅動程序非常簡單，並且談論混合，我想，它更有能力和更少的數據通信。不過，我的第一個問題是關於第一季度毛利率指南，儘管收入出現季節性回落，但該指南仍然更高。我想知道你是否可以——我不知道這是否是 NRE 資金的一部分？或者，如果你能談談司機可能在那裡？

I mean there's not much of the NRE funding in Q1 actually in terms of the forecast. I mentioned in our prepared remarks that we've actually been successful in pushing through some price increases, which is rather unusual for our industry. And so we'll start to see the impact of some of those price increases during the quarter. And then the continued cost reduction efforts. I've mentioned this pretty consistently over the last, I don't know, 3 or 4 quarters that because of the nature of the cost reduction and specifically when you're talking about product redesigns or substituting components that maybe have lower costs that takes some time to play out because you have inventory that you have to -- older inventory at a higher cost, you have to use up before the new inventory at a lower cost comes in. And so those costs improvements don't happen all at once. They tend to happen over a period of a couple of quarters. So there will be some additional impact from those cost reductions in Q1 as well.

我的意思是，就預測而言，第一季度的 NRE 資金實際上並不多。我在準備好的評論中提到，我們實際上已經成功地推動了一些價格上漲，這對我們的行業來說是相當不尋常的。因此，我們將開始看到本季度部分價格上漲的影響。然後是持續降低成本的努力。我在過去 3 或 4 個季度裡一直提到這個，我不知道，因為成本降低的性質，特別是當你談論產品重新設計或替換成本可能更低的組件時有一些時間可以玩完，因為你有你必須的庫存——成本更高的舊庫存，你必須在成本更低的新庫存進來之前用完。所以這些成本的改善不會一下子發生.它們往往會在幾個季度內發生。因此，第一季度的成本削減也會產生一些額外的影響。

Got it. So it sounds like if you're in a situation where revenue comes back post your seasonal quarter, and it doesn't seem like there's a lot of onetime stuff in that Q1 gross margin guide, it seems like you could possibly build on that with higher volumes.

知道了。所以聽起來如果你的收入在你的季節性季度後恢復，而且第一季度毛利率指南中似乎沒有很多一次性的東西，你似乎可以在此基礎上建立更高的體積。

Yes, I think that's right. I mean we certainly didn't talking about returning to certainly upper 20s, mid- to upper 20 range gross margins. And I think we can definitely see especially over the last couple of quarters, we can certainly see a pathway to that later this year.

是的，我認為這是對的。我的意思是，我們當然不是在談論回到 20 多歲、20 多歲中到 20 多歲範圍內的毛利率。而且我認為我們肯定可以看到，尤其是在過去幾個季度，我們肯定可以在今年晚些時候看到一條通往那條路。

Timothy, this is Thompson. We believe our Q4 this year gross margin should be 30% for us. And next year, with [30%], [4.0] , I think the unit price should be much higher for us , it's a very new product, and I think the [overheads] we believe we have very strong advantage in technology and performance and the cost will be better. So the next year cost will be even better. That's all we see right now. And we see this strong demand from the key customers.

蒂莫西，這是湯普森。我們認為今年第四季度的毛利率對我們來說應該是 30%。明年，[30%]，[4.0]，我認為單價對我們來說應該高得多，這是一個非常新的產品，我認為我們相信我們在技術和性能方面具有非常強大的優勢的[間接費用]而且成本會更好。所以明年的成本會更好。這就是我們現在所看到的。我們看到了主要客戶的強烈需求。

Great. And I want to kind of follow up that was my next question actually is. We seem to be talking about cable TV infrastructure demand in 2 different ways, which is one your current demand profile, which seems pretty strong and maybe some of that got pulled into Q4. But you grew 25% or so in cable TV in calendar '22, and obviously much faster than that in Q4. But does that represent a normalized growth rate? Is that something -- can you maintain double digits there regardless of the timing of 4.0? It sounds like what you're trying to say is to the extent we see some of this 4.0 activities start to really happen in the second half of '23 versus '24, that could be a swing factor for your cable TV growth. I'm just trying to set a baseline for how you see the current demand picture and what might be incremental to that?

偉大的。我想跟進一下，這實際上是我的下一個問題。我們似乎以兩種不同的方式談論有線電視基礎設施需求，這是您當前的需求概況之一，它看起來非常強勁，也許其中一些被拉入了第四季度。但在 22 年的日曆中，有線電視增長了 25% 左右，顯然比第四季度快得多。但這是否代表正常化增長率？那是什麼——無論 4.0 的時間如何，你都能保持兩位數嗎？聽起來你想說的是，我們看到一些 4.0 活動在 23 年下半年與 24 年下半年開始真正發生，這可能是有線電視增長的一個搖擺因素。我只是想為您如何看待當前的需求情況以及可能增加的內容設置一個基線？

Yes. So at the moment, I mean we're sort of capacity limited in terms of production. And so until we get a more clear line of sight on exactly how fast the adoption of 4.0 is going to go. I'm not anticipating that we're going to add a lot of production capacity for the 4.0 products. And so for the next several quarters, I would say we're likely to be capacity constrained. Now I mentioned earlier that Q4 was a little bit higher than I think we would do on an average basis. I mean we sort of as I said, the customer tried pulled in some revenue and we did some things to try to ship out as much product as we could. So I wouldn't necessarily predict that number exactly in Q4 as a 4-quarter run rate but going back to a quarter or so, probably is a reasonable estimate of what we would be able to do in a quarter-on-quarter this year, absent any change in the demand picture due to 4.0

是的。所以目前，我的意思是我們在生產方面的能力有限。因此，直到我們更清楚地了解 4.0 的採用速度到底有多快。我預計我們不會為 4.0 產品增加大量生產能力。因此，在接下來的幾個季度裡，我想說我們可能會受到產能限制。現在我之前提到第四季度比我認為的平均水平要高一點。我的意思是我們有點像我說的那樣，客戶試圖獲得一些收入，我們做了一些事情來嘗試盡可能多地運送產品。因此，我不一定會準確地將第四季度的數字預測為第 4 個季度的運行率，但回到一個季度左右，可能是對我們今年每個季度能夠做的事情的合理估計, 由於 4.0，需求圖片沒有任何變化

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Dr. Thompson Lin for any closing remarks.

隊列中沒有更多問題。我們的問答環節到此結束。我想將會議轉回給 Thompson Lin 博士作閉幕詞。

Again, 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 seeing many of you at [OFC] and updating you on our next earnings call.

再次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 [OFC] 見到你們中的許多人，並在我們的下一次財報電話會議上為您更新。

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。