祥茂光電 (AAOI) 2023 Q1 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' First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I will now turn the conference over to Lindsay Savarese, Investor Relations for AOI. Ms. Savarese, you may begin.

下午好。我將是您的會議運營商。在這個時候，歡迎大家參加應用光電公司 2023 年第一季度財報電話會議。 （操作員說明）請注意正在記錄此事件。我現在將會議轉交給 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 am pleased to welcome you to AOI's First Quarter 2023 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its first quarter 2023 financial results, and provided its outlook for the second quarter of 2023. The release is also available on the company's website at ao-inc.com.

謝謝。我是應用光電投資者關係部的 Lindsay Savarese，很高興歡迎您參加 AOI 2023 年第一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 2023 年第一季度的財務業績，並提供了 2023 年第二季度的展望。該新聞稿也可在公司網站 ao-inc.com 上查閱。

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.

此通話正在錄音和網絡直播中。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 Q1 results, and Stefan will provide financial details and the outlook for the second quarter of 2023. A question-and-answer session will follow our prepared remarks.

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 第一季度的業績，Stefan 將提供財務細節和 2023 年第二季度的展望。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 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、業績或公司或其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-尋找陳述。

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.

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、可能、會、將、潛在或事物或這些的否定表達未來事件或結果不確定性的術語或其他類似表達。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。

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.

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，其中許多風險和不確定性不在公司的控制範圍內，包括重要因素，例如與公司是否有能力按照擬議的條款和時間表完成本次電話會議中描述的交易，或者根本沒有。

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.

某些成交條件可能無法及時滿足或豁免的風險，未能或延遲獲得與交易相關的監管或其他政府批准，以及可能導致終止的任何事件、變化或其他情況的發生的交易。

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 second quarter of 2023.

前瞻性陳述還包括有關管理層對我們產品進入新市場的影響力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 2023 年第二季度展望的陳述。

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 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.

除非法律要求，否則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。

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 財務措施不應孤立地考慮或替代根據 GAAP 編制的結果。我們的 GAAP 和非 GAAP 措施之間的對賬，以及對我們為何提出非 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。

I'd like to note that the date of our second quarter earnings call is currently scheduled for August 3, 2023.

我想指出，我們第二季度財報電話會議的日期目前定在 2023 年 8 月 3 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. Our fourth quarter revenue and non-GAAP gross margin were in line with our expectations. While our non-GAAP loss per share came in below expectations due mainly to unexpected foreign exchange losses due to faster than expected appreciation of the Chinese RMB currency relative to U.S. dollar. We are pleased by the progress we have made on improving our gross margin, and are encouraged by improving demand we saw for our 100G products in our data center business during Q1.

謝謝你，林賽，感謝你今天加入我們的電話會議。我們第四季度的收入和非 GAAP 毛利率符合我們的預期。雖然我們的非 GAAP 每股虧損低於預期，但主要是由於人民幣相對於美元的升值速度快於預期導致意外的外匯損失。我們對我們在提高毛利率方面取得的進展感到高興，並為第一季度我們在數據中心業務中看到的對 100G 產品的需求增加感到鼓舞。

We generated another quarter of good CATV results. However, recently, we are notified of some inventory buildout with certain CATV customers, which we expect will negatively impact our Q2 revenue.

我們產生了另外四分之一的良好 CATV 結果。然而，最近，我們獲悉某些 CATV 客戶的一些庫存增加，我們預計這將對我們第二季度的收入產生負面影響。

During the fourth quarter, we delivered revenue of $53 million, in line with our guidance range of $52 million to $55 million. We delivered non-GAAP gross margin of 23.2% in line with our guidance range of 23% to 24%, driven by our target cost reduction and favorable product mix. Our non-GAAP loss per share was $0.25 below guided range of a loss of $0.15 to $0.19 due to the foreign exchange impact I just mentioned.

第四季度，我們實現了 5300 萬美元的收入，符合我們 5200 萬至 5500 萬美元的指導範圍。在我們的目標成本降低和有利的產品組合的推動下，我們實現了 23.2% 的非美國通用會計準則毛利率，符合我們 23% 至 24% 的指導範圍。由於我剛才提到的外匯影響，我們的非 GAAP 每股虧損比 0.15 美元至 0.19 美元的虧損指導範圍低 0.25 美元。

Total revenue in our CATV segment was $27.8 million, up 11% year-over-year and down 27% sequentially off a record Q4, largely due to the negative impact by the loss of production days that occurred during the Lunar New Year holidays in China. Total revenue for our data center product of $20.4 million decreased 5% year-over-year and increased 23% sequentially, largely due to the increased demand for our 100G products.

我們有線電視部門的總收入為 2780 萬美元，同比增長 11%，比創紀錄的第四季度下降 27%，這主要是由於中國農曆新年假期期間生產天數減少的負面影響.我們數據中心產品的總收入為 2040 萬美元，同比下降 5%，環比增長 23%，這主要是由於對我們 100G 產品的需求增加。

On our last call, we discussed an agreement we have signed with a major hyperscale testing operator for development program to make next-generation lasers for its data center, both for 400G and beyond. Our recent 8-K filing give additional details on this agreement with Microsoft, who has been a long-term key customer of ours.

在上次通話中，我們討論了與一家大型超大規模測試運營商簽署的開發計劃協議，為其數據中心製造下一代 400G 及以上激光器。我們最近的 8-K 文件提供了與 Microsoft 達成的這項協議的更多詳細信息，Microsoft 一直是我們的長期重要客戶。

While the development of these new products will take several quarters to be complete, we view this contract award as validation of the strength and the quality of our core laser fabrication ability.

雖然這些新產品的開發將需要幾個季度才能完成，但我們將此次合同授予視為對我們核心激光製造能力實力和質量的認可。

With that, I will turn the call over to Stefan to review the details of our Q1 performance and outlook for Q2. Stefan?

有了這個，我將把電話轉給 Stefan，審查我們第一季度業績的細節和第二季度的前景。斯特凡？

Thank you, Thompson. Our first quarter revenue and non-GAAP gross margin were in line with our expectations. While our non-GAAP loss per share came in wider than our expectations due mainly to unexpected foreign exchange losses due to faster-than-expected appreciation of the Chinese renminbi currency relative to the U.S. dollar. We're pleased by the continued progress we have made to improve our gross margin and are encouraged by the increased demand we saw for our 100G products in our data center business during Q1.

謝謝你，湯普森。我們第一季度的收入和非 GAAP 毛利率符合我們的預期。雖然我們的非 GAAP 每股虧損超出我們的預期，但主要是由於人民幣相對於美元的升值速度快於預期而導致的意外外匯損失。我們對我們在提高毛利率方面取得的持續進展感到高興，並對第一季度數據中心業務中對 100G 產品的需求增加感到鼓舞。

Further, we generated another quarter of good CATV results. However, recently, we were notified of some inventory buildup with certain CATV customers, which we expect will negatively impact our Q2 revenue.

此外，我們還產生了另外四分之一的良好 CATV 結果。然而，最近，我們獲悉某些有線電視客戶的庫存增加，我們預計這將對我們第二季度的收入產生負面影響。

Before turning to discuss our results and outlook, I want to provide an update on the transaction that we announced last September with Yuhan Optoelectronic Technology. As we have previously discussed, we 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.

在討論我們的業績和前景之前，我想提供一下我們去年 9 月宣布的與宇瀚光電科技的交易的最新情況。正如我們之前所討論的，我們與宇瀚光電科技達成協議，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數據中心、電信和多通道光學子組件產品。 FTTH 市場的購買價格為 1.5 億美元。

During the quarter, both AOI and Yuhan made progress in preparing the information that will be needed in order to file for the various regulatory approvals that will be required in order to finalize the divestiture. As a reminder, this transaction is subject to customary closing conditions and regulatory approvals, including CFIUS and ODI.

本季度，AOI 和玉涵在準備完成剝離所需的各種監管批准所需的信息方面取得了進展。提醒一下，該交易須遵守慣例成交條件和監管部門的批准，包括 CFIUS 和 ODI。

Although these filings are not yet complete, we do expect to submit our application within the next few months. The timing of the regulatory process is uncertain, but we believe based on our current schedule that closing the transaction before year-end is still possible, although approval could push the closing time frame into early 2024.

儘管這些文件尚未完成，但我們確實希望在接下來的幾個月內提交我們的申請。監管程序的時間不確定，但我們認為，根據我們目前的時間表，仍有可能在年底前完成交易，儘管批准可能會將關閉時間框架推遲到 2024 年初。

Turning to the quarter, our total revenue for the first quarter increased 2% year-over-year to $53 million, which was in line with our guidance range of $52 million to $55 million. During the first quarter, we secured 1 design win in our CATV business.

談到本季度，我們第一季度的總收入同比增長 2% 至 5300 萬美元，這符合我們 5200 萬至 5500 萬美元的指導範圍。第一季度，我們在 CATV 業務中贏得了一項設計。

Looking ahead, due to our intentional efforts to better focus our R&D spend on projects that we expect to have higher revenue and gross margin potential, we expect the aggregate number of design wins to be reduced compared to prior periods. We do not view this reduction in design wins as indicative of reduced business activity, but rather as a result of the greater discipline we are applying to our R&D efforts.

展望未來，由於我們有意識地努力將研發支出更好地集中在我們預計具有更高收入和毛利率潛力的項目上，我們預計設計中標的總數將比前期減少。我們並不認為設計勝利的減少表明業務活動減少，而是我們在研發工作中應用更嚴格的紀律的結果。

During the first quarter, 52% of our revenue was from our CATV products, 38% was from our data center products, with the remaining 9% from FTTH, telecom and other. CATV revenue in the first quarter was $27.8 million, which was down 27% sequentially off a record Q4 and was up 11% year-over-year driven by demand from CATV customers for products designed to improve upstream or return path bandwidth.

第一季度，我們 52% 的收入來自我們的有線電視產品，38% 來自我們的數據中心產品，其餘 9% 來自 FTTH、電信和其他。第一季度 CATV 收入為 2780 萬美元，較創紀錄的第四季度下降 27%，但由於 CATV 客戶對旨在改善上游或返迴路徑帶寬的產品的需求，同比增長 11%。

As I mentioned earlier, recently, we were notified by certain CATV customers that they believe that some excess inventory has built up among their various distribution channels. As a result, these customers reduce their orders in Q2, which is reflected in our guidance. We are working to evaluate the future extent of this excess inventory. We continue to believe that overall demand for CATV products from the MSOs remains robust and expect that any inventory buildup will be transitory.

正如我之前提到的，最近，我們收到某些 CATV 客戶的通知，他們認為他們的各種分銷渠道中已經積累了一些過剩庫存。因此，這些客戶減少了第二季度的訂單，這反映在我們的指導中。我們正在努力評估這種過剩庫存的未來程度。我們仍然相信 MSO 對 CATV 產品的整體需求依然強勁，並預計任何庫存增加都是暫時的。

Looking ahead, we are carefully monitoring MSO plans to move to DOCSIS 4.0 networks. While we are cautiously optimistic as the nature of these upgrade cycles can be lengthy, we believe AOI remains well positioned to capture a portion of this new infrastructure spend. Our product development team has met numerous times with several of the largest MSOs in the U.S., and we believe our products will be well suited to meet their demands when the push to install amplifiers and other network elements for DOCSIS 4.0 begins. We believe this could happen as early as later this year or in early 2024.

展望未來，我們正在密切關注 MSO 遷移到 DOCSIS 4.0 網絡的計劃。雖然我們對這些升級週期的性質可能很長持謹慎樂觀態度，但我們相信 AOI 仍處於有利地位，可以佔據這一新基礎設施支出的一部分。我們的產品開發團隊與美國幾家最大的 MSO 進行了多次會面，我們相信，當開始推動為 DOCSIS 4.0 安裝放大器和其他網絡元素時，我們的產品將非常適合滿足他們的需求。我們相信這最早可能在今年晚些時候或 2024 年初發生。

Our Q1 data center revenue came in at $20.4 million, down 5% year-over-year and up 23% sequentially driven by increased demand for our 100G products, especially from our largest data center customer. In the first quarter, 78% of our data center revenue was from our 100G products, 6% was from our 40G transceiver products and 8% was from our 200G and 400G transceiver products.

我們第一季度的數據中心收入為 2040 萬美元，同比下降 5%，環比增長 23%，這是由於對我們 100G 產品的需求增加，尤其是來自我們最大的數據中心客戶的需求增加。第一季度，我們數據中心收入的 78% 來自我們的 100G 產品，6% 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。

Looking ahead, we are encouraged by the increased demand we have been seeing and expect continued sequential growth of our data center business in Q2.

展望未來，我們對我們看到的需求增加感到鼓舞，並預計我們的數據中心業務在第二季度將繼續連續增長。

As Thompson mentioned, on our Q4 earnings call, we discussed how we signed an agreement with a major hyperscale data center operator for a development program to make next-generation lasers for its data center both for 400G and beyond. Our recent 8-K filing gives additional details on this agreement with Microsoft, who has been a long-term key customer of ours.

正如 Thompson 提到的那樣，在我們的第四季度財報電話會議上，我們討論了我們如何與一家大型超大規模數據中心運營商簽署一項開發計劃協議，為其數據中心製造 400G 及以上的下一代激光器。我們最近的 8-K 文件提供了與 Microsoft 達成的這項協議的更多詳細信息，Microsoft 一直是我們的長期重要客戶。

While the development of these new products will take several quarters to be completed, we view this contract award as validation of the value of our core laser fabrication ability. As a reminder, Microsoft 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.

雖然這些新產品的開發將需要幾個季度才能完成，但我們將這份合同授予視為對我們核心激光製造能力價值的驗證。提醒一下，微軟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 萬美元將在第四季度支付。

Now turning to our telecom segment. Due to the negative impact from the Lunar New Year and inventory buildup by some of our telecom customers, revenue from our telecom products of $3.7 million was down 30% year-over-year and down 42% sequentially. Looking ahead, we expect to see stronger sequential demand in Q2 as inventory begins to be drawn down to the point that new deliveries will be needed.

現在轉向我們的電信部門。由於農曆新年的負面影響和一些電信客戶的庫存增加，我們電信產品的收入為 370 萬美元，同比下降 30%，環比下降 42%。展望未來，隨著庫存開始減少到需要新交付的程度，我們預計第二季度的連續需求將更加強勁。

For the first quarter, our top 10 customers represented 93% of revenue, up from 89% in Q1 of last year. We had 2 greater than 10% customers, 1 in CATV market and 1 in the data center market, which contributed 42% and 20% of our total revenue, respectively.

第一季度，我們的前 10 大客戶佔收入的 93%，高於去年第一季度的 89%。我們有 2 個超過 10% 的客戶，1 個在有線電視市場，1 個在數據中心市場，分別貢獻了我們總收入的 42% 和 20%。

In Q1, we generated non-GAAP gross margin of 23.2%, which was in line with our guidance range of 23% to 24% and was up from 21.4% in Q4 of 2022 and up from 17.5% in Q1 of 2022. The increase in gross margin was driven mainly by our favorable product mix, our cost reduction efforts and the benefit of some of our intentional actions we took to improve our bottom line that we discussed on our Q4 call.

第一季度，我們的非美國通用會計準則毛利率為 23.2%，符合我們 23% 至 24% 的指導範圍，高於 2022 年第四季度的 21.4% 和 2022 年第一季度的 17.5%。毛利率的增長主要是由於我們有利的產品組合、我們降低成本的努力以及我們為提高我們在第四季度電話會議上討論的底線而採取的一些有意行動的好處。

These actions included the exit of several low-profit legacy products, shifting R&D resources away from some low-margin projects to focus our resources on areas where we can maximize margin and some success in executing price increases with some customers.

這些行動包括退出幾個低利潤的遺留產品，將研發資源從一些低利潤的項目中轉移出來，將我們的資源集中在我們可以最大限度地提高利潤的領域，以及在與一些客戶進行價格上漲方面取得的一些成功。

In line with our expectations, total non-GAAP operating expenses in the first quarter were $19.6 million or 36.9% of revenue, which compared to $19.6 million or 37.5% of revenue in Q1 of the prior year. R&D expenses decreased 10% year-over-year to $8.2 million as a result of the more focused R&D investments I discussed a minute ago.

與我們的預期一致，第一季度非美國通用會計準則運營費用總額為 1960 萬美元，佔收入的 36.9%，而去年第一季度為 1960 萬美元，佔收入的 37.5%。由於我在一分鐘前討論了更加集中的研發投資，研發費用同比下降 10% 至 820 萬美元。

Looking forward, we continue to expect non-GAAP operating expenses will range between $19 million and $20 million per quarter. Non-GAAP operating loss in the first quarter was $7.2 million compared to an operating loss of $10.4 million in Q1 in the prior year. GAAP net loss for Q1 was $16.3 million or a loss of $0.56 per basic share compared with a GAAP net loss of $16.1 million or a loss of $0.58 per basic share in Q1 of 2022.

展望未來，我們繼續預計非 GAAP 運營費用將在每季度 1900 萬美元至 2000 萬美元之間。第一季度的非美國通用會計準則營業虧損為 720 萬美元，而去年第一季度的營業虧損為 1040 萬美元。第一季度的 GAAP 淨虧損為 1630 萬美元或每股基本股虧損 0.56 美元，而 2022 年第一季度的 GAAP 淨虧損為 1610 萬美元或每股基本股虧損 0.58 美元。

On a non-GAAP basis, net loss for Q1 was $7.1 million or a loss of $0.25 per basic share, which was below our guidance range of a loss of $4.4 million to $5.3 million or loss per share in the range of $0.15 to $0.19 per basic share, and compares to a net loss of $7.9 million or a loss of $0.29 per basic share in Q1 of the prior year. The basic shares outstanding used for computing the net loss in Q1 were $28.9 million.

在非 GAAP 基礎上，第一季度淨虧損為 710 萬美元或每股基本股虧損 0.25 美元，低於我們的指導範圍，即虧損 440 萬至 530 萬美元或每股虧損 0.15 至 0.19 美元基本股，而去年第一季度淨虧損 790 萬美元或每股基本股虧損 0.29 美元。用於計算第一季度淨虧損的已發行基本股為 2890 萬美元。

Turning now to the balance sheet. We ended the first quarter with $26.9 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $35.6 million at the end of the fourth quarter. Changes in current accounts included a decrease in accounts receivable of $4.4 million, along with an increase of payables of $9.4 million, which was offset by a decrease in inventory of $9.5 million.

現在轉向資產負債表。第一季度結束時，我們的現金、現金等價物、短期投資和受限現金總額為 2690 萬美元。相比之下，第四季度末為 3560 萬美元。經常賬戶的變化包括應收賬款減少 440 萬美元，以及應付賬款增加 940 萬美元，這被存貨減少 950 萬美元所抵消。

We ended the quarter with total debt, excluding convertible debt of $70.1 million, up slightly from $69.4 million at the end of last quarter. As of March 31, we had $70.2 million in inventory compared to $79.7 million at the end of Q4. Inventory decreased due to utilization of inventory for customer orders in the period.

我們在本季度結束時的總債務（不包括可轉換債務）為 7010 萬美元，略高於上一季度末的 6940 萬美元。截至 3 月 31 日，我們的庫存為 7020 萬美元，而第四季度末為 7970 萬美元。存貨減少是由於本期為客戶訂單動用存貨所致。

We made a total of $0.8 million in capital investments in the first quarter, virtually all of which was for equipment and machinery used in R&D and production.

我們在第一季度總共進行了 80 萬美元的資本投資，幾乎所有這些都用於研發和生產中使用的設備和機器。

As we disclosed in March, we initiated a new at-the-market offering. We previously had an ongoing ATM program authorized by our Board to sell up to $35 million worth of shares under that program. Under the old program, we only sold approximately $2.7 million out of the $35 million authorized.

正如我們在 3 月份披露的那樣，我們啟動了一種新的上市產品。我們之前有一個由董事會授權的正在進行的 ATM 計劃，可以根據該計劃出售價值高達 3500 萬美元的股票。根據舊計劃，我們只售出了授權的 3500 萬美元中的大約 270 萬美元。

When the S-3 expired in January 2023, this old ATM also expired, so we put a new program in place with a fresh $35 million authorization. We intend to use these proceeds to continue to make investments in the business, including new equipment and machinery for production and research and development use.

當 S-3 於 2023 年 1 月到期時，這台舊 ATM 也到期了，因此我們實施了一項新計劃，並獲得了 3500 萬美元的新授權。我們打算使用這些收益繼續對該業務進行投資，包括用於生產和研發的新設備和機器。

Moving now to our Q2 outlook. We expect Q2 revenue to be between $40.5 million and $47.5 million and non-GAAP gross margin to be in the range of 20.5% to 23.5%. Non-GAAP net loss is expected to be in the range of $6.8 million to $9 million and non-GAAP loss per basic share between $0.23 and $0.31 using a weighted average basic share count of approximately 29.2 million shares.

現在轉到我們的第二季度展望。我們預計第二季度收入在 4050 萬美元至 4750 萬美元之間，非 GAAP 毛利率在 20.5% 至 23.5% 之間。非 GAAP 淨虧損預計在 680 萬美元至 900 萬美元之間，非 GAAP 每股基本虧損虧損在 0.23 美元至 0.31 美元之間，加權平均基本股數約為 2920 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) The first question comes from Simon Leopold with Raymond James.

（操作員說明）第一個問題來自 Simon Leopold 和 Raymond James。

So a couple of things I wanted to get a little bit of better insight on. One is around this Microsoft deal in terms of -- I understand you're going to get some R&D funding in the fourth quarter. But can you give us some other indication of the scope of this arrangement, and if it's affected at all by the transaction -- the pending transaction of the asset sale in China. Because I guess I saw some language that change of control, which I assume means the entire company. Just a little clarification there would be helpful.

所以我想對一些事情有更好的了解。一個是圍繞微軟的這筆交易——我知道你將在第四季度獲得一些研發資金。但是你能不能給我們一些其他的說明，說明這種安排的範圍，以及它是否受到交易的影響——中國資產出售的未決交易。因為我想我看到了一些關於控制權變更的語言，我認為這意味著整個公司。只要稍微澄清一下就會有所幫助。

Sure, Simon. Regarding your first question, with respect to kind of the scope of it, the announcement that we made, really in December, but recently released more of the details on it, has to do with the fabrication of a new type of laser device that's going to be used in the creation of certain data center transmission products for use within Microsoft's data center, specifically for 400G and beyond, as we noted in our prepared remarks. As we also said, we think that it starts to ramp really later on this year and then should grow along with the future 400G deployments into 2024 and beyond.

當然，西蒙。關於你的第一個問題，關於它的範圍，我們實際上是在 12 月發布的公告，但最近發布了更多細節，與製造一種新型激光設備有關正如我們在準備好的評論中指出的那樣，用於創建在 Microsoft 數據中心內使用的某些數據中心傳輸產品，特別是 400G 及以上。正如我們還說過的，我們認為它會在今年晚些時候真正開始增長，然後應該會隨著未來 400G 的部署而增長到 2024 年及以後。

With respect to your second question regarding does anything change with respect to the transaction, clearly, given the time frame of this announcement and everything, it was subsequent to the announcement of the transaction. So clearly, Microsoft was aware of the transaction and the details that we presented about that transaction. So no, nothing changes with respect to that.

關於你的第二個問題，關於交易是否有任何變化，很明顯，鑑於本公告的時間框架和所有內容，它是在交易公告之後。很明顯，Microsoft 知道該交易以及我們提供的有關該交易的詳細信息。所以不，這方面沒有任何變化。

With respect to the change of control, you can read the provisions there. That does refer to change in control of the entire company, which this transaction would not -- I mean, that transaction alone would not represent a change of control of the company based on our analysis so far.

關於控制權的變更，您可以閱讀那裡的規定。這確實指的是整個公司控制權的變化，而這次交易不會——我的意思是，根據我們目前的分析，僅那筆交易並不代表公司控制權的變化。

That's what I thought. I want -- that's what I was checking exactly that. So thank you for that. Then the other thing I wanted to ask about was your debt schedule because I believe you've got $53 million that was current last quarter and now the total current debt, I think, is over -- is around $130 million. Could you help me understand sort of the road map or plan to how you're going to pay down debt?

我也這麼想。我想要——這就是我正在檢查的內容。非常感謝你的幫忙。然後我想問的另一件事是你的債務時間表，因為我相信你上個季度有 5300 萬美元，而現在我認為，目前的總債務已經結束——大約是 1.3 億美元。你能幫我了解一下你將如何償還債務的路線圖或計劃嗎？

Yes. I mean I think the transaction that we noted, the proceeds from that should be $150 million minus some amount of hold back. And that certainly gives us the ability to service that debt in the time frame in which it's going to come due. And of course, we're also exploring other options in terms of other things that might be possible if that transaction gets pushed out or what have you. But certainly, the cash from the transaction would be very instrumental to servicing that debt.

是的。我的意思是我認為我們注意到的交易，從中獲得的收益應該是 1.5 億美元減去一些預留金額。這無疑使我們有能力在到期的時間範圍內償還債務。當然，我們也在探索其他選項，如果交易被推遲或你有什麼可能的話。但可以肯定的是，交易產生的現金對於償還債務非常有幫助。

So is there a scenario where you'd get maybe a bridge loan, if essentially the -- I guess there's $50-some-odd million that comes due during this year -- this calendar year? So with the deal with -- it doesn't close until next year, you'd have a gap. Am I misunderstanding that?

那麼，是否存在這樣一種情況，你可能會獲得過橋貸款，如果本質上是——我猜今年有 50 多萬美元到期——這個日曆年？因此，這筆交易要到明年才會結束，你會有差距。我誤解了嗎？

Well, a lot of the debt -- and this has been true for our company for a long time, a lot of the debt that we have is in Asia, excluding the convertible debt of course, and the Asian debt tends to revolve on an annual basis. And it's generally always revolved. It's often backed by assets that we have in Asia, our real estate, for example, or property, plant and equipment over there.

好吧，很多債務——我們公司長期以來都是如此，我們擁有的很多債務都在亞洲，當然不包括可轉換債務，而且亞洲債務往往以年度基礎。而且它通常總是在旋轉。它通常由我們在亞洲擁有的資產支持，例如我們的房地產，或那裡的不動產、廠房和設備。

So it's always had the ability to revolve and we would continue to expect that it does that. So yes, it does show up as a current liability, but it almost always shows up as a current liability, and it just kind of rolls over, and that's, again, what we'd expect this year.

所以它總是有旋轉的能力，我們會繼續期待它這樣做。所以是的，它確實顯示為流動負債，但它幾乎總是顯示為流動負債，它只是滾動，這又是我們今年的預期。

With respect to your question about, could you get a bridge loan or other options, sure, there's lots of things that we could do to enhance liquidity if things don't go according to plan. But with respect to the majority of that debt, that's what we would expect.

關於你的問題，你能否獲得過橋貸款或其他選擇，當然，如果事情沒有按計劃進行，我們可以做很多事情來提高流動性。但就大部分債務而言，這是我們所期望的。

Great. No, I appreciate that. I have not really thought about the rollover of the Asian finance. So that's helpful. And then just the last 1 for me is, if you could talk about your plans and expectations for 1.8 gigahertz amplifiers for the cable TV market.

偉大的。不，我很感激。我還沒有真正考慮過亞洲金融的展期。所以這很有幫助。然後對我來說，最後一個是，如果你能談談你對有線電視市場的 1.8 GHz 放大器的計劃和期望。

Right. So we mentioned in our prepared remarks that we do think that DOCSIS 4.0 is the next generation in cable TV and that various MSOs have been pretty explicit with us, but also publicly with respect to their plans to upgrade their networks using DOCSIS 4.0. Now depending on which MSO you're talking about, I would say the majority of the MSOs are planning to go to 1.8 gigahertz. There are some others that are still looking at, for example, FDX, full duplex DOCSIS or other technologies. But I would say that the predominant technology that seems to be preferred by most of the MSOs is 1.8 gigahertz.

正確的。因此，我們在準備好的評論中提到，我們確實認為 DOCSIS 4.0 是有線電視的下一代，並且各種 MSO 對我們非常明確，但也公開了他們使用 DOCSIS 4.0 升級其網絡的計劃。現在取決於您談論的是哪個 MSO，我想說大多數 MSO 都計劃達到 1.8 GHz。還有一些其他技術仍在研究中，例如 FDX、全雙工 DOCSIS 或其他技術。但我要說的是，大多數 MSO 似乎更喜歡的主要技術是 1.8 GHz。

We've had an active development program ongoing for 1.8 gigahertz for some time. And we're proceeding well according to our plans on that. As we noted in our prepared remarks, we've had numerous discussions with the major MSOs that we expect to deploy this technology again, as early as later this year. And we feel like we're pretty well positioned for that technology.

一段時間以來，我們一直在積極開展 1.8 GHz 的開發計劃。我們正在按照我們的計劃進行得很好。正如我們在準備好的評論中指出的那樣，我們已經與主要的 MSO 進行了多次討論，我們希望最早在今年晚些時候再次部署該技術。我們覺得我們已經為這項技術做好了充分的準備。

The next question comes from Tim Savageaux with Northland Capital Markets.

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

A couple of questions. First, I think you mentioned an NRE payment associated with the Microsoft deal of $3 million, but maybe some numbers beyond that. Do you have kind of a sense of the total kind of value there? And then separately, on the cable side, I know your top customer there has brought up another contract manufacturer in recent months and quarters. Can you discern whether that may be having an impact or whether it's all kind of customer inventory driven?

幾個問題。首先，我想你提到了與微軟交易相關的 NRE 付款 300 萬美元，但也許還有一些數字。你對那裡的整體價值有某種感覺嗎？然後分別在電纜方面，我知道你那裡的頂級客戶在最近幾個月和幾個季度提出了另一家合同製造商。您能否辨別這是否會產生影響，或者它是否是所有類型的客戶庫存驅動的？

So with respect to the question about the Microsoft NRE, so it's a total of $4 million for this particular tranche of NRE, of which $3 million has already been paid as we noted. And we actually will record that as revenue throughout the year. Right now, most of that $3 million that's already been paid is in the prepaid asset because we'll recognize it according to the revenue recognition rules as the project progresses throughout the year.

因此，關於有關 Microsoft NRE 的問題，這一特定 NRE 部分的總金額為 400 萬美元，正如我們指出的那樣，其中 300 萬美元已經支付。實際上，我們會將其記為全年收入。現在，已經支付的 300 萬美元中的大部分都在預付資產中，因為隨著項目全年的進展，我們將根據收入確認規則對其進行確認。

With respect to your question about the cable, we do not believe that the additional contract manufacturer is in any way responsible for the inventory. It really is simply an inventory buildup in the supply chain as far as we can tell. I've been fairly involved in trying to discern that. We do believe that the MSOs continue to purchase gear at a relatively robust clip.

關於您關於電纜的問題，我們認為額外的合同製造商不以任何方式對庫存負責。據我們所知，這實際上只是供應鏈中的庫存積累。我一直在努力辨別這一點。我們確實相信 MSO 會繼續以相對強勁的速度購買設備。

I think that some of the distribution partners maybe got a little bit out over their skis in terms of their forecast. And as interest rates and things like that have ticked up, everybody is looking more closely at their inventory levels. And I think that's really the explanation for it. I don't think it has anything to do with any additional competition in terms of contract manufacturing.

我認為一些分銷合作夥伴在他們的預測方面可能對他們的滑雪板有點過頭了。隨著利率和類似因素的上升，每個人都在更加密切地關注他們的庫存水平。我認為這就是對此的真正解釋。我認為這與合同製造方面的任何額外競爭沒有任何關係。

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

目前，我們沒有進一步的問題。我將把電話轉給 Thompson Lin 博士作結束語。

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 next earnings call.

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。我們期待在下一次財報電話會議上向您通報最新情況。

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。