祥茂光電 (AAOI) 2023 Q2 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' Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

午安.我將擔任各位的會議主持人。現在，我歡迎各位參加Applied Optoelectronics 2023年第二季業績電話會議。 （主持人指示）請注意，本次會議正在錄音中。

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

現在我將把電話轉給AOI投資者關係部門的Lindsay Savarese。 Savarese女士，您可以開始發言了。

Thank you. I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics. I am pleased to welcome you to AOI's Second Quarter 2023 Financial Results Conference Call.

謝謝。我是 Lindsay Savarese，來自 Applied Optoelectronics 投資者關係部門。歡迎您參加 AOI 2023 年第二季財務業績電話會議。

After the market close today, AOI issued a press release announcing its second quarter 2023 financial results and provided its outlook for the third quarter of 2023. The release is also available on the company's website at ao-inc.com.

今天收盤後，AOI 發布了一份新聞稿，宣布了 2023 年第二季的財務業績，並提供了 2023 年第三季的展望。新聞稿也可在本公司網站 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.

本次電話會議將會錄音並進行網路直播。錄音連結可在AOI網站的「投資者關係」板塊找到，並將存檔一年。

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 Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2023. A question-and-answer session will follow our prepared remarks.

AOI創辦人、董事長兼執行長Thompson Lin博士以及AOI財務長兼首席策略長Stefan Murry博士將出席今日的電話會議。 Thompson將概述AOI第二季的業績，Stefan將提供財務細節以及2023年第三季的展望。在我們準備好的發言稿之後，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 its industry to differ materially from those expressed or implied in such forward-looking statements.

在開始之前，我想提醒您閱讀AOI的安全港聲明。在今天的電話會議上，管理階層將做出前瞻性陳述。這些前瞻性陳述涉及風險和不確定性以及假設和當前預期，這可能導致公司的實際業績、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有重大差異。

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，您可以透過諸如相信、預測、預期、估計、打算、預料、期望、計劃、可能、應該、能夠、將會、潛在或事物等術語，或透過這些術語的否定形式或其他表達未來事件或結果不確定性的類似表述來識別前瞻性陳述。本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.

雖然本公司認為這些預期、假設、估計和預測是合理的，但此類前瞻性陳述僅為預測，涉及已知和未知的風險和不確定性，其中許多超出了公司的控制範圍，包括與公司能否按照擬議條款和時間表完成或完全完成本次電話會議中描述的交易相關的重要因素。

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被放棄的風險、未能或延遲獲得與交易相關的所需監管或其他政府批准以及發生任何可能導致交易終止的事件、變更或其他情況。

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 third quarter of 2023.

前瞻性陳述還包括有關管理層對我們的產品擴展到新市場的範圍和客戶對我們創新的反應的信念和期望的陳述，以及有關公司對 2023 年第三季度的展望的陳述。

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.

除法律要求外，我們不承擔在本次收益電話會議召開日後因任何原因更新前瞻性陳述的義務，以使這些陳述與實際結果或公司預期的變化相符。有關可能影響公司業務的其他風險的更多信息，請參閱公司提交給美國證券交易委員會 (SEC) 的報告的“風險因素”部分，包括公司截至 2022 年 12 月 31 日的 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，除非另有說明，今天討論的所有財務業績和其他財務指標均基於非公認會計準則 (GAAP)。非公認會計準則 (Non-GAAP) 財務指標不應單獨考慮，也不應取代根據公認會計準則 (GAAP) 編制的績效。我們網站上的收益新聞稿中包含了 GAAP 和非 GAAP 指標之間的對比，以及我們採用非公認會計準則 (Non-GAAP) 財務指標的原因說明。

Before moving to the financial results, I'd like to announce that AOI management will be attending the H.C. Wainwright Global Investment Conference on September 11 and the Northland Institutional Investment Conference on September 19. I'd like to note the date of our third quarter earnings call is currently scheduled for November 9, 2023.

在公佈財務表現之前，我想宣布AOI管理層將參加9月11日的H.C. Wainwright全球投資會議和9月19日的Northland機構投資會議。我想指出的是，我們第三季財報電話會議的日期目前定於2023年11月9日。

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

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

Thank you, Lindsay, and thank you for joining our call today. Our second quarter revenue was in line with our expectations, while our non-GAAP gross margin and non-GAAP loss per share were better than our expectations.

謝謝Lindsay，也感謝您今天參加我們的電話會議。我們第二季的營收符合預期，非公認會計準則下的毛利率和非公認會計準則下的每股虧損也比預期好。

We are pleased by the continued progress we have made on improving our gross margin and are encouraged by increased demand we saw for our 100G and 400G products in our data center business during Q2.

我們對在提高毛利率方面取得的持續進展感到高興，並對第二季度資料中心業務對 100G 和 400G 產品的需求增加感到鼓舞。

(inaudible) revenue for our 100G product increased 30% sequentially, while revenue for our 400G product doubled sequentially and accounted for 11% of our total data center revenue in Q2. During the second quarter, we did revenue of $41.6 million, in line with our guidance range of $40.5 million to $47.5 million. We delivered non-GAAP gross margin of 24.8%, above our current range of 20.5% to 23.5%, mainly driven by a favorable product mix and our targeted cost reductions. Our non-GAAP loss per share was $0.21, above our guidance range of a loss of $0.23 to $0.31.

（聽不清楚）我們100G產品的營收季增了30%，而400G產品的營收季增翻了一番，佔第二季我們資料中心總營收的11%。第二季度，我們的營收為4,160萬美元，符合我們4,050萬美元至4,750萬美元的預期範圍。我們的非公認會計準則毛利率為24.8%，高於我們目前的20.5%至23.5%的預期範圍，這主要得益於良好的產品組合和我們制定的成本削減目標。我們的非公認會計準則每股虧損為0.21美元，高於我們0.23美元至0.31美元的預期範圍。

Total revenue in our CATV segment was $9.3 million, down 61% year-over-year and down 66% sequentially. As a reminder, our Q2 results were negatively impacted by some inventory build up with certain CATV customers, which led to softer-than-expected CATV revenue in Q2.

我們有線電視部門的總收入為930萬美元，年減61%，季減66%。需要提醒的是，部分有線電視客戶庫存積壓，對我們第二季的業績產生了負面影響，導致第二季有線電視收入低於預期。

We do believe that this inventory dilation in 2022 and based on what we are seeing today, we expect our CATV revenue to increase slightly sequentially also maybe down year-over-year off by the quite strong Q3 of last year.

我們確實相信 2022 年的庫存會擴大，根據我們今天看到的情況，我們預計我們的有線電視收入將環比略有增長，也可能同比下降，因為去年第三季度的業績相當強勁。

Total revenue for our data center product of $27.6 million increased 28% year-over-year and increased 35% sequentially largely due to increased demand for our 100G and 400G products as we continue to see the run-up of our 400G products.

我們的資料中心產品總收入為 2,760 萬美元，年成長 28%，環比成長 35%，這主要是由於我們的 100G 和 400G 產品的需求增加，因為我們繼續看到 400G 產品的崛起。

On our last 2 calls, we discussed an agreement we have signed with Microsoft, who has been a long-term key customer of ours. For development program to make next-generation lasers for its data center, specifically 400G and beyond.

在最近的兩次電話會議中，我們討論了與微軟簽署的協議。微軟一直是我們長期的重要客戶。該協議旨在開發用於其數據中心的下一代雷射器，特別是400G及以上規格的雷射。

During the second quarter, we signed additional development agreement with Microsoft to provide design and assembly services for active optical cables. We view this contract award as validation of the strength and quality of our core laser fabrication ability. In total, we believe that this award AOI of over $300 million over 7 years.

第二季度，我們與微軟簽署了一項附加開發協議，為有源光纜提供設計和組裝服務。我們認為這份合約是對我們核心雷射製造能力實力和品質的認可。我們認為，這份合約總計將在未來7年內為AOI（自動光學檢測）公司帶來超過3億美元的收入。

With that, I will turn the call over to Stefan to review the details of our Q2 performance and outlook for Q3. Stefan?

接下來，我會把電話交給 Stefan，讓他回顧我們第二季的業績細節以及第三季的展望。 Stefan？

Thank you, Thompson. As Thompson mentioned, our second quarter revenue was in line with our expectations, while our non-GAAP gross margin and non-GAAP loss per share were above our expectations. We're pleased by the continued progress we have made to improve our gross margin and expect this trend to continue. Further, we are encouraged by the increased demand we saw for our 100G and 400G products in our data center business during Q2.

謝謝湯普森。正如湯普森所提到的，我們第二季的營收符合預期，非公認會計準則下的毛利率和非公認會計準則下的每股虧損均高於預期。我們對毛利率持續改善感到欣慰，並預計這一趨勢將持續下去。此外，我們第二季資料中心業務對100G和400G產品的需求成長也令我們感到鼓舞。

Lastly, we are excited about our newly formed Broadband Access group, the strength of talent we have recently added to this team and believe that we are well positioned to execute on our new strategy to sell our CATV products directly to MSO customers.

最後，我們對新成立的寬頻存取集團以及最近加入團隊的人才隊伍感到非常興奮，並相信我們已做好準備，執行新策略，將我們的 CATV 產品直接銷售給 MSO 客戶。

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 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. As a reminder, this transaction is subject to customary closing conditions and regulatory approvals, including CFIUS and ODI.

在討論我們的業績和展望之前，我想先介紹一下我們去年9月宣布的與Yuhan Optoelectronic Technology的交易的最新進展。正如我們之前討論過的，我們與Yuhan達成了一項協議，以1.5億美元的收購價格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和麵向數據中心、電信和FTTH市場的多通道光組件產品相關的部分資產。需要提醒的是，本交易需滿足慣例成交條件並獲得監管機構的批准，包括美國外國投資委員會(CFIUS)和海外直接投資(ODI)。

We continue to make progress in preparing the information that will be needed in order to file for the various regulatory approvals that are required in order to finalize the divestiture. Although these filings are not yet complete, we do expect to submit our application to CFIUS within the next 45 days. While the timing of the regulatory approval process is uncertain, based on our current schedule, we expect the closing time frame will be early 2024.

我們正在繼續準備所需信息，以便提交完成剝離所需的各項監管批准。儘管這些申請尚未完成，但我們預計將在未來45天內向美國外國投資委員會 (CFIUS) 提交申請。雖然監管審批流程的具體時間尚不確定，但根據我們目前的安排，我們預計最終完成時間為2024年初。

Turning to the quarter. Our total revenue for the second quarter decreased to 20% year-over-year to $41.6 million, which was in line with our guidance range of $40.5 million to $47.5 million. The decline in revenue was largely due to the inventory buildup with certain of our CATV customers that we discussed on our Q1 call.

回顧本季。我們第二季的總營收年減20%，至4,160萬美元，符合我們4,050萬美元至4,750萬美元的預期範圍。收入下降主要是由於我們在第一季電話會議上討論過的部分有線電視客戶的庫存增加。

During the second quarter, 66% of our revenue was from our data center products, 22% was from our CATV products, with the remaining 11% from FTTH, telecom and other. In line with our expectations, CATV revenue in the second quarter was $9.3 million, which was down 66% sequentially and 61% year-over-year.

第二季度，我們66%的營收來自資料中心產品，22%來自有線電視產品，其餘11%來自光纖到府（FTTH）、電信及其他業務。第二季有線電視營收為930萬美元，季減66%，年減61%，符合我們的預期。

As a reminder, our CATV revenue was negatively impacted as a few of our CATV customers worked through excess inventory that had built up among their various distribution channels. We expect that any inventory buildup will be transitory and based on what we are seeing today, we expect that our CATV business will increase slightly sequentially, although it will be down year-over-year off a historically strong Q3 of last year.

需要提醒的是，我們的有線電視收入受到了負面影響，因為我們的一些有線電視客戶正在消化其各個分銷管道累積的過剩庫存。我們預計庫存積壓將是暫時的，根據目前的情況，我們預計有線電視業務將環比略有增長，但同比去年同期的強勁增長（去年第三季度的表現相比）將有所下降。

As a reminder, our CATV revenue in 2021 and 2022 was historically high compared to prior years. We do expect our CATV revenue will rebound to more normal levels although near term, it will be down compared to those historic highs as the MSOs transition to next-generation architecture.

需要提醒的是，我們2021年和2022年的有線電視收入與往年相比創下了歷史新高。我們預計有線電視收入將反彈至更正常的水平，儘管短期內，隨著多系統營運商向下一代架構過渡，其收入與歷史高點相比將有所下降。

Looking further 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 continue to believe AOI remains well positioned to capture a portion of this new infrastructure spend and think our products are well suited for when the push to install amplifiers and other network elements for DOCSIS 4.0 begins. We believe this transition could happen in early to mid-2024.

展望未來，我們正密切關注MSO遷移至DOCSIS 4.0網路的計畫。儘管我們謹慎樂觀，因為這些升級週期可能很長，但我們仍然相信AOI仍處於有利地位，能夠分一杯羹，並且相信我們的產品非常適合在DOCSIS 4.0開始安裝放大器和其他網絡元件時使用。我們認為這項過渡可能在2024年初至年中發生。

During the quarter, we announced the change in our strategy to offer our CATV products directly to MSO customers through our recently formed Broadband Access group. We believe this strategic move will allow us to better serve the MSO needs for reliable, feature-rich amplifiers for their network upgrades. We also expect that this strategy will help us scale our business more efficiently and improve our gross margin further. We believe we could eventually see 10 to 15 points of margin increase as a result of this transition.

本季度，我們宣布了策略調整，透過新成立的寬頻接取集團直接向MSO客戶提供CATV產品。我們相信，這項策略性舉措將使我們能夠更好地滿足MSO對可靠、功能豐富的擴大機的需求，並協助其網路升級。我們也預計，這項策略將幫助我們更有效率地擴展業務，並進一步提高毛利率。我們相信，此次轉型最終將帶來10至15個百分點的利潤率成長。

In line with our new strategy of directly selling to the MSOs, during the quarter, we announced order availability of our Quantum Bandwidth line extender and system amplifier products. As 1 of the few companies with large-scale in-house manufacturing capacity for amplifiers, we believe our new products will expand AOI's product portfolio while maintaining the industry-leading quality and reliability of our renowned HFC products.

秉承我們面向MSO直銷的新策略，我們在本季度宣布了量子頻寬線路擴展器和系統放大器產品的訂單開放。作為少數幾家擁有大規模內部擴大機生產能力的公司之一，我們相信新產品將進一步豐富AOI的產品組合，同時保持我們備受讚譽的HFC產品在業界領先的品質和可靠性。

During the quarter and subsequent to quarter end, we also added critical talent to our newly formed Broadband Access group. Notably, and as you may have seen, we appointed Todd McCrum as Senior Vice President and General Manager of the Broadband Access team. In this newly created position, Todd will lead sales, product development and marketing of AOI's Quantum Bandwidth line of Broadband Access products. Todd's impressive career in broadband has spanned the development of modern hybrid fiber-coax networks and we are thrilled to add him to the team. He previously spent 27 years with Scientific-Atlanta and Cisco Systems, including serving as the lead of Cisco's Cable Access business unit and Vice President of Marketing.

在本季及季末，我們也為新成立的寬頻接取團隊增添了關鍵人才。值得一提的是，正如您可能已經看到的，我們任命Todd McCrum為寬頻接取團隊高級副總裁兼總經理。在這個新設立的職位上，Todd將領導AOI量子頻寬系列寬頻接取產品的銷售、產品開發和行銷。 Todd在寬頻領域的輝煌職業生涯涵蓋了現代混合光纖同軸電纜網路的發展，我們非常高興他能加入我們的團隊。在此之前，他曾在科學亞特蘭大公司和思科系統公司工作了27年，擔任思科有線接入業務部門負責人和行銷副總裁。

In addition to Todd, within our Broadband Access group, we also appointed Steve Pederson as EVP of Business Development; Michael Ballard, as Senior Director of Marketing; Al Johnson, as Senior Director of Business Development; and most recently, Corey Chapman, as Senior Director of Sales Engineering for our Quantum Bandwidth line of products.

除了 Todd 之外，在我們的寬頻接入集團內，我們還任命了 Steve Pederson 為業務發展執行副總裁；Michael Ballard 為行銷高級總監；Al Johnson 為業務發展高級總監；最近，我們還任命了 Corey Chapman 為量子頻寬產品線銷售工程高級總監。

All 4 of these business professionals have had impressive careers with extensive experience that we believe will greatly contribute to the success of our Broadband Access group. We were excited by the strength of talent that we have added at the leadership level, and we have also made significant strides in building out the rest of the Broadband Access team. We are focused on executing on our new strategy, and believe we are well positioned with the right products and a deep bench of talent.

這四位業務專家都擁有令人印象深刻的職業生涯和豐富的經驗，我們相信這將極大地促進我們寬頻接入集團的成功。我們對領導階層新增的人才實力感到興奮，同時我們在寬頻接取團隊其他成員的建設方面也取得了顯著進展。我們專注於執行新策略，並相信憑藉合適的產品和雄厚的人才儲備，我們已佔據有利地位。

Turning to our data center business. In Q2, data center revenue came in at $27.6 million, up 28% year-over-year and up 35% sequentially, largely due to increased demand for our 100G and 400G products. In the second quarter, 75% of our data center revenue was from our 100G products, 12% was from our 200G and 400G transceiver products and 5% was from our 40G transceiver products.

談到我們的資料中心業務。第二季度，資料中心營收為2,760萬美元，年增28%，較上季成長35%，這主要得益於我們100G和400G產品的需求成長。第二季度，我們資料中心營收的75%來自100G產品，12%來自200G和400G收發器產品，5%來自40G收發器產品。

Notably, revenue for our 100G products increased 30% sequentially, while revenue for our 400G products doubled sequentially and accounted for 11% of our total data center revenue in Q2. Looking ahead, we're encouraged by the increased demand we have been seeing and expect continued sequential growth of our data center business in Q3.

值得注意的是，我們的100G產品營收季增30%，而400G產品營收季增翻番，佔第二季資料中心總營收的11%。展望未來，我們對持續成長的需求感到鼓舞，並預計第三季資料中心業務將繼續保持環比成長。

As Thompson mentioned, on our last 2 earnings calls, we discussed how we signed an agreement with Microsoft for a development program to make next-generation lasers for its data center both for 400G and beyond. During the second quarter, we signed an additional development agreement with Microsoft to provide design and assembly services for active optical cables. Our recent 8-K filings give additional data.

正如湯普森所提到的，在我們最近的兩次財報電話會議上，我們討論瞭如何與微軟簽署一項開發項目協議，為其資料中心製造400G及更高速率的下一代雷射。在第二季度，我們與微軟簽署了另一項開發協議，為有源光纜提供設計和組裝服務。我們最近的8-K文件提供了更多數據。

We expect to begin shipping initial quantities of these products to Microsoft by the end of this year for their testing with production ramping early next year. We view these contract awards as validation of the strength and quality of our core laser fabrication ability and our design and manufacturing expertise for these advanced high-speed interconnect products.

我們預計今年底開始向微軟交付首批產品進行測試，並於明年初實現量產。我們認為這些合約的授予是對我們核心雷射製造能力實力和品質的認可，以及我們在這些先進高速互連產品方面的設計和製造專長。

As many of you know, Microsoft has been a long-term key customer of ours. While not guaranteed, we believe that the revenue opportunity for our 400G and 800G products could be greater and have a longer duration than the revenue contribution we saw from this customer during the peak of the 40G product cycle, which would imply revenue from these products exceeding $300 million over the several years of these build-outs.

眾所周知，微軟一直是我們長期的重要客戶。雖然無法保證，但我們相信，與40G產品週期高峰期相比，微軟為我們帶來的收入貢獻可能更大，持續時間更長，這意味著這些產品在未來幾年的建設中將帶來超過3億美元的收入。

We also believe that the value proposition that we offer to Microsoft is just as strong with other data center operators, and we are working with several of them to evaluate our technology and qualify our products.

我們也相信，我們向微軟提供的價值主張與其他資料中心營運商一樣強大，我們正在與其中幾家公司合作，評估我們的技術並驗證我們的產品。

We are also seeing positive inbound interest from other potential customers for our lasers, and we believe we are well positioned to grow this business. I'd like to particularly highlight 1 new source of laser revenue in this quarter.

我們也看到其他潛在客戶對我們的雷射表現出積極的興趣，我們相信我們已做好準備，推動這項業務的成長。我想特別強調一下本季雷射器業務的一個新收入來源。

During the quarter, we received our first volume order for LiDAR lasers to be used in a transportation application. The order was approximately $1 million worth of lasers to be delivered over the next few quarters, so it's not immediately material financially. But we feel that the LiDAR business has the potential to grow substantially in the 3- to 5-year time frame, and we view this initial volume order as indicative of the success of the development program for our frequency modulated continuous wave or FMCW, LiDAR lasers. We believe that we will secure additional orders to these lasers over time as other customers begin to roll out FMCW, LiDAR technology.

本季度，我們收到了首批用於交通運輸應用的雷射雷達 (LiDAR) 雷射器批量訂單。該訂單價值約 100 萬美元，將在未來幾季交付，因此不會立即帶來重大財務影響。但我們認為，LiDAR 業務在未來 3 到 5 年內預計將大幅成長，並將這筆首批訂單視為我們調頻連續波 (FMCW) LiDAR 雷射開發項目成功的標誌。我們相信，隨著其他客戶開始採用 FMCW LiDAR 技術，我們將獲得更多此類雷射的訂單。

Now turning to our telecom segment. Revenue from our telecom products of $4.2 million was down 33% year-over-year and up 14% sequentially. Looking ahead, we expect telecom sales to remain roughly flat to up slightly in Q3.

現在談談我們的電信業務。我們電信產品的營收為420萬美元，年減33%，較上季成長14%。展望未來，我們預計第三季電信銷售額將基本持平或略有成長。

For the second quarter, our top 10 customers represented 88% of revenue, up from 87% in Q2 of last year. We had 2 greater than 10% customers, 1 in the data center market and 1 in the CATV market which contributed 29% and 13% of our total revenue, respectively.

第二季度，我們前十大客戶貢獻了88%的收入，高於去年同期的87%。我們有2個客戶貢獻率超過10%，分別來自資料中心市場和有線電視市場，分別貢獻了29%和13%的總收入。

In Q2, we generated non-GAAP gross margin of 24.8%, which was above our guidance range of 20.5% to 23.5% and was up from 23.2% in Q1 of 2023 and up from 16.7% in Q2 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 the intentional actions we have taken to improve our bottom line that we have discussed on our prior couple of earnings calls.

在第二季度，我們的非 GAAP 毛利率為 24.8%，高於我們 20.5% 至 23.5% 的預期範圍，高於 2023 年第一季的 23.2% 和 2022 年第二季的 16.7%。毛利率的成長主要得益於我們有利的產品組合、我們的成本削減努力以及我們在前幾次財報電話會議上討論過的為提高利潤而採取的一些有意行動帶來的好處。

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種低利潤的傳統產品，將研發資源從一些低利潤項目轉移，將我們的資源集中在可以最大化利潤的領域，並成功地向一些客戶提高了價格。

We are pleased with the execution we made on increasing our gross margin and expect this trend to continue. We remain committed to the long-term goal of returning gross margin to around 40% and believe that this goal is achievable.

我們對提升毛利率的成效感到滿意，並預期這一趨勢將持續下去。我們將繼續致力於實現毛利率恢復至40%左右的長期目標，並相信這一目標是可以實現的。

In line with our expectations, total non-GAAP operating expenses in the second quarter were $19 million or 45.8% of revenue which compared to $18.2 million or 34.9% of revenue in Q2 of the prior year. With the new additions in our Broadband Access group and additional activity we plan to promote our CATV products, we expect a modest uptick in non-GAAP operating expenses to $21 million per quarter starting in Q3 of 2023.

根據我們的預期，第二季非公認會計準則 (Non-GAAP) 總營運費用為 1,900 萬美元，佔營收的 45.8%，而去年同期為 1,820 萬美元，佔營收的 34.9%。隨著寬頻接取集團新成員的加入以及我們計劃推廣有線電視產品的額外活動，我們預計從 2023 年第三季開始，非公認會計準則 (Non-GAAP) 營運費用將小幅上升至每季 2,100 萬美元。

Non-GAAP operating loss in the second quarter was $8.7 million compared to an operating loss of $9.5 million in Q2 of the prior year. GAAP net loss for Q2 was $16.9 million or a loss of $0.57 per basic share compared with a GAAP net loss of $14.5 million or a loss of $0.52 per basic share in Q2 of 2022.

第二季非公認會計準則 (Non-GAAP) 營運虧損為 870 萬美元，去年同期營運虧損為 950 萬美元。第二季公認會計準則 (GAAP) 淨虧損為 1,690 萬美元，即每股基本虧損 0.57 美元，而 2022 年第二季公認會計準則淨虧損為 1,450 萬美元，即每股基本虧損 0.52 美元。

On a non-GAAP basis, net loss for Q2 was $6.1 million or a loss of $0.21 per basic share, which was better than our guidance range of a loss of $6.8 million to $9 million or loss per share in the range of $0.23 to $0.31 per basic share, and compares to a net loss of $7.6 million or a loss of $0.28 per basic share in Q2 of the prior year. The basic shares outstanding used for computing the net loss in Q2 were 29.5 million.

以非公認會計準則 (Non-GAAP) 計算，第二季淨虧損為 610 萬美元，或每股虧損 0.21 美元，優於我們預期的 680 萬美元至 900 萬美元虧損或每股虧損 0.23 美元至 0.31 美元的區間。去年同期淨虧損為 760 萬美元，或每股虧損 0.28 美元。用於計算第二季淨虧損的流通股數為 2,950 萬股。

Turning now to the balance sheet. We ended the second quarter with $28.6 million in total cash, cash equivalents, short-term investments and restricted cash. This compares with $26.9 million at the end of the first quarter of this year. We ended the quarter with total debt, excluding convertible debt of $46.9 million, down from $70.1 million at the end of last quarter. As of June 30, we had $66.3 million in inventory compared to $70.2 million at the end of Q1.

現在來看看資產負債表。截至第二季末，我們的現金、現金等價物、短期投資和限制性現金總額為2,860萬美元。而今年第一季末，我們的現金、現金等價物、短期投資和限制性現金總額為2,690萬美元。本季末，我們的總債務（不包括可轉換債務）為4,690萬美元，低於上一季末的7,010萬美元。截至6月30日，我們的庫存為6,630萬美元，而第一季末為7,020萬美元。

Inventory decreased due to consumption of inventory for customer orders. We made a total of $1 million in capital investments in the second quarter, which is mainly used for production and R&D equipment. As we disclosed in March, we initiated a new at-the-market offering. To date, we have raised $9.9 million net of commissions and fees under this new program, all of which was raised in Q2.

由於客戶訂單消耗庫存，庫存減少。我們在第二季共進行了100萬美元的資本投資，主要用於生產和研發設備。正如我們3月份所揭露的那樣，我們啟動了一項新的市價發行（at-the-market offering）。迄今為止，我們已根據這項新計劃籌集了990萬美元（扣除佣金和費用），全部於第二季籌集。

Moving now to our Q3 outlook. We expect Q3 revenue to be between $60 million and $66 million and non-GAAP gross margin to be in the range of 29.5% to 31%. Non-GAAP net income is expected to be in the range of a loss of $1.9 million to income of $0.2 million and non-GAAP income between a loss of $0.06 per basic share and income of $0.01 per basic share using a weighted average basic share count of approximately 33.1 million shares.

現在來看看我們對第三季的展望。我們預計第三季營收將在 6,000 萬美元至 6,600 萬美元之間，非公認會計準則 (Non-GAAP) 毛利率將在 29.5% 至 31% 之間。非公認會計準則 (Non-GAAP) 淨利潤預計在虧損 190 萬美元至收益 20 萬美元之間，非公認會計準則 (Non-GAAP) 收益預計在每股基本股虧損 0.06 美元至每股基本股收益 0.01 美元之間（以約 3,310 萬數的加權平均基本股數計算）。

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

說完這些，我將把時間交還給接線員，進行問答環節。接線生？

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

（操作員指示）第一個問題來自 Raymond James 的 Simon Leopold。

You've given us a lot of good modeling information here, and I'd like to just clarify something I think is implied. In that you suggested that the CATV business would be up a little bit sequentially, telecom would be flat to slightly up and so kind of backing out that into your total revenue forecast suggests your data center business is up sequentially by something on the order of 70%. And you didn't mention that explicitly, but you've kind of guided us this way. Can you just clarify what your expectation is there?

您在這裡提供了許多很好的模型信息，我想澄清一下我認為其中隱含的一點。您之前提到有線電視業務將環比略有增長，電信業務將持平或略有增長，因此，將這一點納入您的總收入預測中，表明您的數據中心業務將環比增長約70%。您沒有明確提到這一點，但您已經引導我們這樣做了。您能否解釋一下您的預期是什麼？

Sure, Simon. You're pretty good at math. The uptick there is mainly from the data center business, as you surmised.

當然，西蒙。你數學真好。正如你所猜測的，成長主要來自資料中心業務。

Great. And you talked about the Microsoft project timing being the end of this year. So it's not coming from the new Microsoft awards. Could you give us some color on what's driving this big jump?

太好了。您剛才說微軟的專案時間是在今年底。所以這並非來自微軟新的獎項。您能具體解釋一下推動這項重大進展的原因嗎？

Well, I mean, we've continued to see very strong results in our existing 100G and 400G products. And that's where this uptick is coming from. We've talked about over the last, gosh, probably at least 1 year that we felt like our 400G was starting to ramp and was in that ramping phase, and that's indeed what we're seeing right now.

嗯，我的意思是，我們現有的100G和400G產品持續取得了非常強勁的業績。這就是這種增長的來源。我們在過去至少一年一直認為，我們的400G產品開始加速成長，並且正處於成長階段，而我們現在確實看到了這樣的情況。

400G is continuing to ramp. While at the same time, we're seeing very strong results from 100G as well. So -- both of those things are kind of firing on all cylinders. As you noted, the revenue increase that we're seeing is primarily not coming from the new Microsoft contracts. It's mostly coming from existing products.

400G 正在持續成長。同時，我們也看到 100G 的業績非常強勁。所以，這兩方面都可以說是全速發展。正如您所說，我們看到的收入成長主要並非來自微軟的新合同，而是主要來自現有產品。

And don't forget, I think that because of AI (inaudible) and AOI at the same time is getting pretty strong market share.

別忘了，我認為由於 AI（聽不清楚）和 AOI 同時獲得了相當強大的市場份額。

Great. And then just pivoting now to the cable business. Just others who are in that market have talked about some of the transitional effects -- and you've been pretty clear in talking about excess inventory as a factor.

太好了。現在我們來談談有線電視業務。其他從事有線電視市場的人已經談到了一些轉型效應——而且您也非常清楚地提到了庫存過剩是一個因素。

And I wanted to maybe see if you could talk a little bit about the transitions of technology and how that might be playing into it specifically the deployment of DOCSIS 4.0 and the -- basically, the debate between full duplex and extended spectrum. Is that a factor that sort of amplifies or creates a greater pause in this market? Is that we're burning off old technology ahead of new technology. Could you help me understand that?

我想看看您能否談談技術的變革，以及它對市場的影響，特別是DOCSIS 4.0的部署，以及全雙工和擴展頻譜之間的爭論。這些因素是否會加劇或加劇這個市場的停滯？我們是不是正在淘汰舊技術，而新技術卻不斷出現？您能幫我理解一下嗎？

I don't think that's a big factor right now. I think that the bigger factor just has to do with the distribution channel, and I think I mentioned on the previous earnings call, with the interest rate environment, many of the distributors are taking a hard look at how much inventory that they carry. So I think it has more to do with financial effects and just the raw amount of inventory that's out there as opposed to looking ahead and saying, well, we might not need these products because DOCSIS 4.0 is coming on board.

我認為目前這不是一個重要因素。我認為更大的因素只與分銷管道有關。我記得我在之前的財報電話會議上提到過，由於利率環境，許多經銷商正在認真審視他們的庫存量。所以我認為這與財務影響以及庫存的原始數量有關，而不是展望未來，然後說，好吧，我們可能不需要這些產品了，因為 DOCSIS 4.0 即將到來。

There's going to be a long tail, I would anticipate with the existing 1.2 gigahertz DOCSIS 3.1 type of products. So I'm not hearing from distributors that they're concerned about the inventory level that they have due to concerns they won't be able to sell it efficiently. It's more about, well, I just don't know what the right level of inventory is at this point, given the financial situation and interest rates and what have you.

我預期現有的1.2 GHz DOCSIS 3.1 類產品將有長尾效應。因此，我沒有聽到分銷商表示他們擔心庫存水平，擔心無法有效銷售。更重要的是，考慮到財務狀況、利率等因素，我不知道目前合適的庫存水準是多少。

(Operator Instructions) The next question comes from Tim Savageaux with Northland Capital Markets.

（操作員指示）下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

Congratulations on the outlook, in particular. I wanted to follow up with some questions there. I see there's a good bit of deferred revenue that has been added to your balance sheet here, both short term and a little long term. And I was wondering if part of that revenue increase might be some of the NRE or project development payments coming out of Microsoft in addition to product revenue.

尤其要祝賀你們的前景。我想跟進一些問題。我看到你們的資產負債表上增加了不少遞延收入，既有短期收入，也有少量長期收入。我想知道，除了產品收入之外，這部分收入的成長是否可能來自微軟的部分NRE（非房地產）或專案開發支出。

And if that's the case, I wonder if you could try and quantify that. And I imagine that would have a real positive impact on gross margins as well? Or is this just all module revenue driving this increase?

如果是這樣，您能否嘗試量化一下？我想這也會為毛利率帶來真正的正面影響嗎？還是說，僅僅是所有模組收入推動了這項成長？

You're talking about in the guidance, how much NRE revenue or development revenue that we're counting on?

您在指導中談到我們期望多少 NRE 收入或開發收入？

That's right.

這是正確的。

Okay. So there is some of that in there. For nondisclosure reasons, I can't give you the exact toll in there, but there is some of that in there. But really, the bulk of the increase in margin is coming from increased margins on the products that we're selling, as we mentioned in our prepared remarks. It's not primarily being driven by NRE revenue. That's a relatively small amount that's included in guidance.

好的。這裡面確實有一部分。由於保密原因，我無法提供確切的數字，但確實有一些。但實際上，利潤率的成長主要來自於我們銷售產品的利潤率成長，正如我們在準備好的發言中所提到的。這主要並非由非房地產收入所驅動。這部分收入在指引中佔比相對較小。

Okay. Great. And so would you say the same thing about product revenue being the bulk of the increase -- the sequential increase in data center. And within that, do you expect to see these dynamics continue around 400 gig and 100 gig in terms of outsized -- where do you expect, I guess, over the next few quarters, your 400-gig revenue to go or, say, I guess, you classify 200 gig plus as a percent of total data center revenue?

好的。太好了。那麼，您是否認為產品收入是成長的主要動力——資料中心的連續成長？在此範圍內，您是否預計這種動態會繼續在400G和100G左右持續下去？您預計在接下來的幾個季度裡，400G的營收會達到什麼水準？或者，您認為200G以上的收入佔資料中心總收入的百分比是多少？

Yes, I expect the 400 gig -- and you're correct in saying it's 200 gig plus, but for us, that's almost entirely 400 gig. We don't have a lot of 200-gig business. We expect that to continue to grow, both in absolute dollars and as a percent of data center revenue.

是的，我預計會有400G——你說的沒錯，是200G以上，但對我們來說，幾乎全部都是400G。我們的200G業務並不多。我們預計這部分業務將繼續成長，無論是絕對金額還是佔資料中心收入的百分比。

That being said, I mean, I think 100 gig is continuing to track very well as well. So I think both of those things are looking good as I mentioned when Simon asked earlier.

話雖如此，我認為100G的市場表現也持續良好。所以，正如我之前Simon提問時提到的，我認為這兩方面都看起來不錯。

You had another question there, Tim, I'm sorry, I forgot. I think basically, you were just asking -- I think the first part of the question, if I remember, was just basically asking is this really truly product revenue that is driving the increase in revenue as well as gross margin?

提姆，你剛才還有個問題，抱歉，我忘了。我想你基本上是在問——如果我沒記錯的話，問題的第一部分基本上是在問，這真的是推動收入和毛利率成長的產品收入嗎？

And the answer is, yes, it's product revenue that's driving it. I mean, we're selling a lot more 100 gig and 400 gig in data center space. Cable TV, as we mentioned, is down a little bit, but we do anticipate that to tick up a little bit sequentially in the guidance. And that's what's really driving the growth.

答案是肯定的，是產品收入推動了成長。我的意思是，我們在資料中心領域銷售的100G和400G容量大幅增加。正如我們所提到的，有線電視業務略有下降，但我們預計在業績指引中將比去年同期略有回升。這才是真正推動成長的因素。

Great. And -- maybe I could ask a question about kind of what's happening at your Microsoft, your biggest data center customer. So on the 1 hand, you look to be developing the fact of optical cable product for what I assume to be a very high-speed application, 800 gig, I suppose, maybe 400 as well associated with an AI build-out.

太好了。或許我可以問一下你們最大的資料中心客戶微軟的狀況。一方面，你們似乎正在開發光纜產品，用於我認為非常高速的應用，我想是800G，也可能是400G，以及與人工智慧建設相關的應用。

And yet you're also prior to that seeing some pretty strong increases in volumes and maybe pricing as well. Given the gross margin movement on the current module product I wonder if you can kind of relate those 2 things.

但在此之前，您也看到了銷售和價格的強勁成長。考慮到當前模組產品的毛利率變動，我想知道您是否可以將這兩件事聯繫起來。

I mean, we've seen Microsoft with a pretty dramatic uptick in spending here this quarter that's expected to continue really for the next several quarters. So from your perspective, I'd be interested on kind of what's happening sort of short term versus medium term there with regard to data center connectivity demand.

我的意思是，我們看到微軟本季的支出大幅成長，預計未來幾季還會持續成長。所以從您的角度來看，我感興趣的是資料中心連接需求的短期和中期情況。

Well, without going into too many details that would be difficult to disclose publicly due to our relationship there. I think your observation that Microsoft has been investing heavily. It's a very apt explanation. The fact that AI is really driving their network needs right now is extremely important to them and keeping up with the demand there is very, very critical to their operations. And so they're definitely adding a lot of optical modules, a lot of interconnect modules now.

嗯，我不想談太多細節，因為我們的關係，這些細節很難公開。我認為你提到的微軟一直在大力投資，這是一個非常恰當的解釋。人工智慧現在真正推動他們的網路需求，這對他們來說至關重要，滿足這項需求對他們的營運來說非常非常關鍵。所以他們現在肯定在增加大量的光模組和互連模組。

And their expectation based on the contracts that we've supplied in terms of active optical cables certainly would indicate to us that they expect to continue to see strong demand mainly driven by AI applications, although certainly, the sort of general purpose compute is also a part of that.

根據我們在有源光纜方面提供的合同，他們的預期肯定會向我們表明，他們預計將繼續看到強勁的需求，主要由人工智慧應用推動，當然，通用計算也是其中的一部分。

And it would seem to imply that that's expected to be in pretty strong demand for Microsoft for several years, at least, as we noted in our prepared remarks, I mean if you kind of look at some of the forecasts that we've received from them and the contractual -- the minimum contractual levels of manufacturing that they've asked us to prepare. That would imply revenue of $300 million plus over the next few years just in those products not counting existing other types of business that they might have. So it's a pretty sizable opportunity for us.

這似乎意味著，至少在未來幾年內，微軟對這類產品的需求將相當強勁，正如我們在準備好的發言稿中提到的那樣，我的意思是，如果你看一下我們從他們那裡收到的一些預測，以及他們要求我們準備的合約規定的最低生產水平。這意味著未來幾年，光是這些產品的收入就將超過3億美元，這還不包括他們可能擁有的其他現有業務。所以這對我們來說是一個相當大的機會。

At this time, I will turn the call over to Dr. Thompson Lin for closing remarks.

現在，我將把電話交給 Thompson Lin 博士做結束語。

Okay. Again, thank you for joining us today. As always, we want to extend a thank you to our investors, customers, employees for your continued support. We look forward to seeing many of you at our upcoming investment conference and update you our next earnings call.

好的。再次感謝大家今天的參與。一如既往，我們要感謝投資人、顧客和員工一直以來的支持。我們期待在即將舉行的投資會議上與大家見面，並在下次財報電話會議上向大家報告。

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。您可以斷開連線了。