祥茂光電 (AAOI) 2024 Q2 法說會逐字稿

Good afternoon.

午安.

I will be your conference operator.

我將擔任您的會議操作員。

At this time, I would like to welcome everyone to Applied Optoelectronics' Second Quarter 2024 Earnings Conference Call.

現在，我歡迎大家參加應用光電公司2024年第二季財報電話會議。

(Operator Instructions) Please also note, today's call is being recorded.

（操作員說明）也請注意，今天的通話正在錄音。

I would now like to turn the call over to Lindsay Savarese, Investor Relations for AOI.

我現在想將電話轉給 AOI 投資者關係部門的 Lindsay Savarese。

Mrs. Savarese, you may begin.

薩瓦雷斯夫人，您可以開始了。

Thank you.

謝謝。

I'm Lindsay Savarese, Investor Relations for Applied Optoelectronics.

我是應用光電公司投資者關係部的林賽·薩瓦雷塞 (Lindsay Savarese)。

I am pleased to welcome you to AOI's second quarter 2024 financial results conference call.

我很高興歡迎您參加 AOI 2024 年第二季財務業績電話會議。

After the market closed today, AOI issued a press release announcing its second quarter 2024 financial results and provided its outlook for the third quarter of 2024.

今天收盤後，AOI 發布新聞稿，公佈了 2024 年第二季財務業績，並提供了 2024 年第三季的展望。

The release is also available on the company's website at ao-inc.com. This call is being recorded and webcast live.

該版本還可在該公司網站 ao-inc.com 上取得。此次通話正在錄音並進行網路直播。

A link to the recording can be found on the Investor Relations section of the AOI website and will be archived for one year.

錄音的連結可以在 AOI 網站的投資者關係部分找到，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.

參加今天電話會議的還有 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。

Thompson will give an overview of AOI's Q2 results, and Stefan will provide financial details and the outlook for the third quarter of 2024.

Thompson 將概述 AOI 第二季業績，Stefan 將提供財務細節和 2024 年第三季的前景。

A question-and-answer session will follow our prepared remarks.

在我們準備好的發言之後將舉行問答環節。

Before we begin, I would like to remind you to review AOI's safe harbor statement.

在我們開始之前，我想提醒您查看 AOI 的安全港聲明。

On today's call, management will make forward-looking statements.

在今天的電話會議上，管理階層將發表前瞻性聲明。

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.

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。看起來的陳述。

In some cases, you can identify forward-looking statements by terminology such as believes, forecast, anticipates, estimates, projects, intends, predicts, expects, plans, 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.

在某些情況下，您可以透過相信、預測、預期、估計、項目、打算、預測、預期、計劃、可能、應該、能夠、將、將、潛力或事物等術語或負面資訊來識別前瞻性陳述這些術語或其他類似表達方式傳達了未來事件或結果的不確定性。

The company has based these forward-looking statements on its current expectations, assumptions, estimates and projections.

該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.

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超出了公司的控制範圍。

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 2024.

前瞻性陳述還包括有關管理層對將我們的產品範圍擴展到新市場的信念和期望以及客戶對我們的創新的反應的陳述，以及有關公司 2024 年第三季度前景的陳述。

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.

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，以確認這些陳述的實際結果或公司預期的變化。

More information about other risks that may impact the company's business are set forth in the Risk Factors section of the company's reports on file with the SEC, including the company's annual report on Form 10-K and the company’s quarterly report on Form 10-Q.

有關可能影響公司業務的其他風險的更多信息，請參閱公司向 SEC 歸檔的報告的“風險因素”部分，包括公司 10-K 表中的年度報告和 10 表中公司的季度報告-Q。

Also, all financial results and other financial measures discussed today are on a non-GAAP basis, unless specifically noted otherwise.

此外，除非另有特別說明，今天討論的所有財務績效和其他財務指標均基於非公認會計原則。

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

非公認會計原則財務指標不應被孤立考慮，也不能取代根據公認會計原則編制的結果。

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

我們的 GAAP 和非 GAAP 指標之間的調整以及我們為何提出非 GAAP 財務指標的討論都包含在我們網站上的收益新聞稿中。

Before moving to the financial results, I'd like to announce that AOI management will virtually participate at the Rosenblatt 4th Annual Technology Summit- The Age of AI on August 20, and is attending the Jefferies Semi, IT Hardware & Communications Technology Summit on August 28.

在公佈財務業績之前，我想宣布 AOI 管理層將虛擬參加 8 月 20 日舉行的 Rosenblatt 第四屆年度技術高峰會 - 人工智慧時代，並參加 8 月舉行的 Jefferies Semi、IT 硬體和通訊技術高峰會28.

I’d like to note that the date of our third quarter 2024 earnings call is currently scheduled for November 7, 2024.

我想指出的是，我們 2024 年第三季財報電話會議的日期目前定於 2024 年 11 月 7 日。

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

現在，我想把電話轉給應用光電創辦人、董事長兼執行長林湯普博士。

Thompson?

湯普森？

Thank you, Lindsay, and thank you for joining our call today.

謝謝你，林賽，也謝謝你今天加入我們的電話會議。

Our revenue for the second quarter was in line with our expectations.

我們第二季的營收符合我們的預期。

While our non-GAAP gross margin came in below our expectations, primarily due to product mix, our non-GAAP loss per share was favorable compared to our expectations.

雖然我們的非公認會計準則毛利率低於我們的預期（主要是由於產品組合），但我們的非公認會計準則每股虧損與我們的預期相比是有利的。

During the second quarter, we delivered a revenue of $43.3 million, which was within our guidance range of $41.5 million to $46.5 million.

第二季度，我們實現了 4,330 萬美元的收入，處於 4,150 萬至 4,650 萬美元的指導範圍內。

We delivered non-GAAP gross margin of 22.5%, which was below our guidance range of 25.5% to 27.5%.

我們的非 GAAP 毛利率為 22.5%，低於我們 25.5% 至 27.5% 的指引範圍。

Our non-GAAP loss per share was $0.28, which was favorable compared to our guidance range of loss of $0.29 to $0.35 per share.

我們的非 GAAP 每股虧損為 0.28 美元，這與我們每股虧損 0.29 至 0.35 美元的指導範圍相比是有利的。

Our revenue for our data center product of $34.4 million was up 25% year-over-year and 19% sequentially.

我們的資料中心產品營收為 3,440 萬美元，較去年同期成長 25%，較上季成長 19%。

Revenue for our 100G products increased 21% year-over-year and revenue for our 400G products more than double in the same period.

100G產品營收年增21%，400G產品營收同期成長一倍以上。

We are pleased to report that we have begun to receive initial order for 400G products from a large hyper-scale customer, and we are very excited about this new customer interaction.

我們很高興地報告，我們已經開始收到一家大型超大規模客戶的 400G 產品的初始訂單，我們對這種新的客戶互動感到非常興奮。

With this new customer, we now are shipping 400G products to three out of the five largest hyper-scale data center customers in the US.

有了這個新客戶，我們現在正在向美國五個最大的超大規模資料中心客戶中的三個提供 400G 產品。

Total revenue in our CATV segment was $5.8 million, which was down 38% year-over-year and 33% sequentially largely driven by continued generally slow sales of DOCSIS 3.1 equipment.

我們的 CATV 部門的總收入為 580 萬美元，年減 38%，環比下降 33%，這主要是由於 DOCSIS 3.1 設備的銷售持續普遍緩慢所致。

As the industry prepares to transition to DOCSIS 4.0, we believe that this transition is underway and expect our [CATV 6] to begin to ramp in Q3.

隨著產業準備過渡到 DOCSIS 4.0，我們相信這種過渡正在進行中，並預計我們的 [CATV 6] 將在第三季開始成長。

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

接下來，我將把電話轉給 Stefan，以審查我們第二季業績的詳細資訊和第三季的前景。

Stefan?

斯特凡？

Thank you, Thompson.

謝謝你，湯普森。

As Thompson mentioned, our revenue for the second quarter was in line with our expectations.

正如湯普森所說，我們第二季的營收符合我們的預期。

While our non-GAAP gross margin came in below our expectations largely due to product mix, our non-GAAP loss per share was favorable compared to our expectations.

雖然我們的非公認會計準則毛利率低於我們的預期主要是由於產品組合，但我們的非公認會計準則每股虧損與我們的預期相比是有利的。

As a reminder, on our Q1 call, we discussed a number of key reasons why we felt optimistic about the second half of the year despite a slow start to 2024.

提醒一下，在第一季的電話會議上，我們討論了儘管 2024 年開局緩慢，但我們對下半年感到樂觀的一些關鍵原因。

Today, we're pleased to report that we have executed on many of these initiatives that we believe will position the company for long-term success and continue to give us optimism for the second half of the year and beyond.

今天，我們很高興地報告，我們已經執行了其中許多舉措，我們相信這些舉措將使公司取得長期成功，並繼續讓我們對今年下半年及以後的前景感到樂觀。

As Thompson mentioned earlier, we've begun to receive orders for 400G products from another large hyper-scale customer, and we expect to ship these initial orders in Q3.

正如 Thompson 之前提到的，我們已經開始收到另一家大型超大規模客戶的 400G 產品訂單，我們預計在第三季度發貨這些初始訂單。

While the initial orders are relatively small, we are very excited about this new customer interaction.

雖然最初的訂單相對較小，但我們對這種新的客戶互動感到非常興奮。

With this new customer, we are now shipping 400G products to three out of the five largest hyper-scale data center customers in the US.

有了這個新客戶，我們現在正在向美國五個最大的超大規模資料中心客戶中的三個提供 400G 產品。

We previously discussed on our Q1 call how we had begun to receive forecasted orders for the VCSEL-based 400G active optical cables, for which Microsoft provided development funding last year.

我們之前在第一季電話會議上討論了我們如何開始收到基於 VCSEL 的 400G 有源光纜的預測訂單，微軟去年為此提供了開發資金。

As demonstrated by our Q2 datacenter results, we have started to see business improvements and expect to see continued improvement throughout the year.

正如我們第二季資料中心的結果所證明的那樣，我們已經開始看到業務改善，並預計全年將持續改善。

While the initial ramp has been slower than originally anticipated, recent forecasts indicate a substantial improvement in revenue in late Q3 and into Q4 and beyond.

雖然最初的成長速度比最初預期的要慢，但最近的預測表明，第三季末、第四季及以後的收入將大幅改善。

We anticipate that this will represent a longer-term, sustainable increase in business and are excited for this product to finally transition to wider usage within our customers' datacenters.

我們預計這將代表業務的長期、可持續成長，並且對該產品最終在我們客戶的資料中心內得到更廣泛的使用感到興奮。

Lastly, in our CATV business, we have finalized the qualification testing with three out of the four individual 1.8 gigahertz amplifier models with one of our major MSO customers.

最後，在我們的 CATV 業務中，我們已經與我們的主要 MSO 客戶之一完成了四個獨立 1.8 GHz 放大器型號中的三個的資格測試。

The testing has gone well, and we have begun to negotiate our first orders for these new amplifiers and expect our CATV results to improve markedly in Q3 as a result.

測試進展順利，我們已經開始協商這些新擴大機的第一批訂單，並預計我們的 CATV 業績將在第三季顯著改善。

Turning to the quarter.

轉向季度。

Our total revenue for the second quarter was $43.3 million, which was up 4% year-over-year and 6% sequentially and which was in line with our guidance range of $41.5 million to $46.5 million.

我們第二季的總營收為 4,330 萬美元，年增 4%，季增 6%，符合我們 4,150 萬美元至 4,650 萬美元的指導範圍。

During the second quarter, 79% of our revenue was from our datacenter products, 13% was from our CATV products, with the remaining 8% from FTTH, telecom and other.

第二季度，我們79%的營收來自資料中心產品，13%來自CATV產品，其餘8%來自FTTH、電信和其他產品。

In our datacenter business, our Q2 datacenter revenue came in at $34.4 million, which increased 25% year-over-year and 19% sequentially.

在我們的資料中心業務中，第二季資料中心營收為 3,440 萬美元，年增 25%，較上季成長 19%。

In the second quarter, 73% of our data center revenue was from our 100G products, 18% was from our 200G and 400G transceiver products and 7% was from our 40G transceiver products.

第二季度，我們資料中心營收的73%來自我們的100G產品，18%來自我們的200G和400G收發器產品，7%來自我們的40G收發器產品。

As we have discussed on several prior earnings calls, we signed two agreements with Microsoft in 2023 for the development of 400G products and beyond.

正如我們在之前的幾次財報電話會議上討論的那樣，我們在 2023 年與微軟簽署了兩項協議，用於開發 400G 及更高版本的產品。

This included a development program to make next-generation lasers for its datacenters and for the development of its 400G and next-generation active optical cables.

其中包括為其資料中心製造下一代雷射以及開發 400G 和下一代主動光纜的開發計劃。

While not guaranteed, we continue to believe that the revenue opportunity for our 400G and 800G products could be greater and a longer duration than the revenue contribution we saw from this customer during the peak of the 40G product cycle, which suggests that revenue from these products may exceed $300 million over the several years of these buildouts.

雖然不能保證，但我們仍然相信，我們的 400G 和 800G 產品的收入機會可能比我們在 40G 產品週期高峰期從該客戶那裡看到的收入貢獻更大、持續時間更長，這表明這些產品的收入這些擴建項目在未來幾年內可能會超過3 億美元。

In Q2, we began to see some business improvement, and we believe that this business will continue to ramp in Q3 and Q4.

在第二季度，我們開始看到業務有所改善，我們相信該業務將在第三季和第四季繼續成長。

As our datacenter customers work on building out their next-generation, AI-focused data center architectures, we have been very active in our 800G qualification efforts with several hyperscale customers.

隨著我們的資料中心客戶致力於建立下一代、以人工智慧為中心的資料中心架構，我們一直非常積極地與多個超大規模客戶一起進行 800G 認證工作。

We believe that orders for 800G products will begin for us in Q4 of this year, with a ramp from that point.

我們相信 800G 產品的訂單將於今年第四季開始，並從那時起開始增加。

Turning to our CATV business.

轉向我們的有線電視業務。

CATV revenue in the second quarter was $5.8 million, which was down 38% year-over-year and down 33% sequentially, largely driven by generally slow sales of DOCSIS 3.1 equipment as the industry transitions to DOCSIS 4.0.

第二季 CATV 收入為 580 萬美元，年減 38%，季減 33%，主要是由於產業向 DOCSIS 4.0 過渡，DOCSIS 3.1 設備銷售普遍放緩。

With the encouraging results from our customer qualification and our new 1.8 gigahertz amplifier products, we expect significant improvement in our CATV business starting in Q3, with an additional ramp in Q4 and into 2025, as we believe customer upgrades to their networks will begin in earnest.

憑藉我們的客戶資格和新的1.8 GHz 放大器產品取得的令人鼓舞的成果，我們預計我們的CATV 業務將從第三季度開始顯著改善，並在第四季度和2025 年進一步增長，因為我們相信客戶將認真開始對其網路進行升級。

Now turning to our telecom segment.

現在轉向我們的電信部門。

Revenue from our telecom products of $2.4 million was down 44% year-over-year and up 5% sequentially, largely driven by ongoing softness in 5G demand, particularly in China.

我們的電信產品收入為 240 萬美元，年減 44%，環比增長 5%，這主要是由於 5G 需求持續疲軟，特別是在中國。

Looking ahead, we continue to expect telecom sales to fluctuate from quarter-to-quarter.

展望未來，我們持續預期電信銷售額將出現季度波動。

For the second quarter, our top 10 customers represented 94% of revenue, up from 88% in Q2 of last year.

第二季度，我們的十大客戶佔營收的 94%，高於去年第二季的 88%。

We had three greater than 10% customers, two, in the data center market, which contributed 60% and 16% of our total revenue, respectively; and one in the CATV market, which contributed 12% of our total revenue.

我們有三個超過 10% 的客戶，其中兩個來自資料中心市場，分別貢獻了我們總收入的 60% 和 16%；有線電視市場占我們總收入的 12%。

In Q2, we generated non-GAAP gross margin of 22.5%, which was below our guidance range of 25.5% to 27.5% and was up from 18.9% in Q1 of 2024 and down from 24.8% in Q2 of 2023.

第二季度，我們的非 GAAP 毛利率為 22.5%，低於 25.5% 至 27.5% 的指引範圍，高於 2024 年第一季的 18.9%，低於 2023 年第二季的 24.8%。

The decrease in gross margin was driven mainly by product mix.

毛利率下降主要是產品組合所致。

Looking ahead, we expect continued improvement in gross margins throughout the year as product mix improves in our datacenter business and as our CATV business begins to ramp.

展望未來，隨著資料中心業務產品組合的改善以及有線電視業務的開始成長，我們預計全年毛利率將持續改善。

We remain committed to our long-term goal of returning our non-GAAP gross margin to around 40% and believe that this goal is achievable.

我們仍然致力於實現將非 GAAP 毛利率恢復到 40% 左右的長期目標，並相信這一目標是可以實現的。

Total non-GAAP operating expenses in the second quarter were $26 million or 60% of revenue, which compared to $19 million or 46% of revenue in Q2 of the prior year due to higher R&D spend to improve time to market for our 800G and 1.6 terabit data center products.

第二季非GAAP 營運支出總額為2,600 萬美元，佔營收的60%，而上年第二季為1,900 萬美元，佔營收的46%，這是由於為縮短800G 和1.6 的上市時間而增加的研發支出太比特資料中心產品。

Looking ahead, we continue to expect non-GAAP operating expenses to range from $24 million to $26 million per quarter to account for the acceleration of R&D expenses.

展望未來，我們繼續預期非 GAAP 營運支出每季將在 2,400 萬美元至 2,600 萬美元之間，以應對研發支出的加速成長。

Non-GAAP operating loss in the second quarter was $16.2 million compared to an operating loss of $8.7 million in Q2 in the prior year.

第二季非 GAAP 營運虧損為 1,620 萬美元，而上年第二季營運虧損為 870 萬美元。

GAAP net loss for Q2 was $26.1 million or a loss of $0.66 per basic share compared with a GAAP net loss of $16.9 million or a loss of $0.57 per basic share in Q2 of 2023.

第二季 GAAP 淨虧損為 2,610 萬美元，或每股基本股虧損 0.66 美元，而 2023 年第二季 GAAP 淨虧損為 1,690 萬美元，或每股基本股虧損 0.57 美元。

On a non-GAAP basis, net loss for Q2 was $10.9 million or $0.28 per share, which was favorable to our guidance range of a loss of $11.6 million to $13.5 million or a loss per share in the range of $0.29 to $0.34 per basic share.

以非公認會計準則計算，第二季淨虧損為1,090 萬美元，即每股0.28 美元，這有利於我們的指引範圍，即虧損1,160 萬美元至1,350 萬美元，或每股基本股虧損0.29 至0.34美元。

This compares to a non-GAAP net loss of $6.1 million or a loss of $0.21 per basic share in Q2 of the prior year.

相比之下，去年第二季的非 GAAP 淨虧損為 610 萬美元，或每股基本股虧損 0.21 美元。

The fully diluted shares outstanding used for computing the earnings per share in Q2 were $39.4 million.

用於計算第二季每股收益的完全稀釋後已發行股票為 3,940 萬美元。

Turning now to the balance sheet, we ended the second quarter with $16.1 million in total cash, cash equivalents, short-term investments and restricted cash.

現在轉向資產負債表，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 1,610 萬美元。

This compares with $17.4 million at the end of the first quarter.

相比之下，第一季末為 1740 萬美元。

As was the case last quarter, we had significant cash collections that came in shortly after the end of the quarter, including roughly $15 million in collections within the two-week period following the end of the quarter.

與上季的情況一樣，我們在季度末後不久收到了大量現金回款，其中包括在季度末後兩週內收到的約 1500 萬美元的現金回款。

During the quarter, we also used some cash to pay down debt in order to control our interest expense.

本季度，我們也使用了一些現金來償還債務，以控制利息支出。

We ended the quarter with total debt, excluding convertible debt of $27.5 million, compared to $34.8 million at the end of last quarter.

本季末，我們的總債務（不包括可轉換債務）為 2,750 萬美元，而上季末為 3,480 萬美元。

As of June 30, we had $54.3 million in inventory, which was flat compared to $54.3 million at the end of Q1.

截至 6 月 30 日，我們的庫存為 5,430 萬美元，與第一季末的 5,430 萬美元持平。

We made a total of $4 million in capital investments in the second quarter, which was mainly used for production and R&D equipment.

第二季我們總共進行了400萬美元的資本投資，主要用於生產和研發設備。

Moving now to our Q3 outlook.

現在轉向我們的第三季展望。

We expect Q3 revenue to be between $60 million and $66 million and non-GAAP gross margin to be in the range of 24% to 26%.

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 GAAP 毛利率將在 24% 至 26% 之間。

Non-GAAP net loss is expected to be in the range of $5.9 million to $8.6 million and non-GAAP loss per share between $0.14 per basic share and $0.20 per basic share, using a weighted average basic share count of approximately 43.2 million shares.

根據加權平均基本股數約為 4,320 萬股，預計非 GAAP 淨虧損將在 590 萬美元至 860 萬美元之間，非 GAAP 每股虧損將在每股基本股 0.14 美元至 0.20 美元之間。

The gross margin in Q3 is somewhat lower than what we had earlier anticipated, mainly due to additional costs that we expect to incur due to the rapid ramp of our 1.8 gigahertz CATV products in the quarter.

第三季的毛利率略低於我們先前的預期，主要是由於我們預計本季 1.8GHz CATV 產品的快速成長將產生額外成本。

We believe the gross margin will expand for these products in Q4 as we gain efficiency and economies of scale in our manufacturing process for these new products.

我們相信，隨著我們在這些新產品的製造過程中提高效率和規模經濟，這些產品的毛利率將在第四季度擴大。

Looking ahead, we continue to be optimistic about the long-term demand drivers for both our data center and CATV businesses and that we are well positioned to benefit from these growing trends.

展望未來，我們繼續對資料中心和有線電視業務的長期需求驅動因素持樂觀態度，並且我們有能力從這些成長趨勢中受益。

At the midpoint of our third quarter guidance range, we are projecting in excess of 45% revenue growth sequentially.

在我們第三季指導範圍的中點，我們預計營收季增將超過 45%。

While we are not yet in a position to provide guidance for Q4, we believe that this growth rate will accelerate from Q3 to Q4, benefiting from the tailwinds driven by the adoption of generative AI, which we continue to believe will require our datacenter customers to deploy more infrastructure, including more optical interconnect.

雖然我們還無法為第四季度提供指導，但我們相信，受益於採用生成式人工智慧帶來的順風，這一增長率將從第三季度到第四季度加快，我們仍然認為這將要求我們的資料中心客戶部署更多基礎設施，包括更多光互連。

Due to our US-based production ability and our automated manufacturing capabilities and experience, we believe we are uniquely positioned to help our customers meet the significant demand.

由於我們位於美國的生產能力以及自動化製造能力和經驗，我們相信我們具有獨特的優勢，可以幫助我們的客戶滿足巨大的需求。

Also, we believe that we are very well positioned with the right team, product portfolio and strategy in place as our CATV customers transition to next-generation architecture and implement new technologies like DOCSIS 4.0.

此外，我們相信，隨著我們的 CATV 客戶過渡到下一代架構並實施 DOCSIS 4.0 等新技術，我們已處於非常有利的位置，擁有合適的團隊、產品組合和策略。

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

這樣，我會將其轉回給操作員進行問答環節。

Operator?

操作員？

(Operator Instructions) Simon Leopold, Raymond James.

（操作員說明）西蒙·利奧波德、雷蒙·詹姆斯。

Great.

偉大的。

Thank you for taking the questions.

感謝您提出問題。

I've got a handful.

我有一把。

Let me start out with on this - the new hyperscale win, which sounds nice, and I guess something you guys have been shooting for a bit.

讓我從這個開始——新的超大規模勝利，這聽起來不錯，我想你們一直在追求這一點。

Can you give us a little bit more color on the nature of this award?

您能給我們更多關於這個獎項的性質的資訊嗎？

Is this another AOC type of device, or any kind of color you can give us on the contents of what you're selling to this - in this new project?

這是另一種 AOC 類型的設備，還是您可以在這個新項目中向我們提供的有關您銷售的產品內容的任何顏色？

Then I've got a follow-up on the CATV segment?

那我有關於 CATV 部分的後續報導嗎？

Yeah.

是的。

I mean, for confidentiality reasons, I really can't disclose too much about it, but it's a product that's more in line with our standard data center type transceiver product, and it is a 400 gig product.

我的意思是，出於保密原因，我確實不能透露太多，但它是一款更符合我們標準資料中心型收發器產品的產品，而且是一款400G產品。

And then a single mold.

然後是單一模具。

400G.

400G。

Great.

偉大的。

And then on the CATV.

然後在有線電視上。

Go ahead

前進

Thank you.

謝謝。

On the CATV side, I kind of thought we were bottoming last quarter, so a little bit surprised, but everything suggests that the ramp of DOCSIS 4.0 is still coming, maybe just slower than we once expected.

在有線電視方面，我認為我們上個季度已經觸底，所以有點驚訝，但一切都表明 DOCSIS 4.0 的增長仍在到來，可能只是比我們曾經預期的要慢。

So, I'm wondering if you could level set us in terms of, how you expect that product segment to develop, and maybe this is a little bit of an artificial metric, but I'm just trying to figure out where do we kind of get back to maybe a $25 million quarterly run rate?

所以，我想知道您是否可以根據您期望該產品細分市場如何發展來對我們進行水平設定，也許這有點人為的指標，但我只是想弄清楚我們在哪裡恢復到2500 萬美元的季度運行率？

Is that a second half '25 event, or can that happen earlier than that?

這是 25 年下半年的活動嗎，還是可以更早發生？

Any kind of guidance you could give us around the timing of the CATV ramp would help?

您可以就 CATV 坡道的時間表向我們提供任何指導嗎？

Well, as we said in our prepared remarks, I expect a substantial improvement in CATV revenue in Q3.

嗯，正如我們在準備好的發言中所說，我預計第三季有線電視收入將大幅改善。

So I expect we'll be back at a $25 million number before the end of the year, on that range.

因此，我預計我們將在今年年底前恢復到 2500 萬美元的水平。

The challenge that we have right now, as we noted in the Cable TV section, is really on the gross margin in Q3, based on the guide.

正如我們在有線電視部分指出的那樣，我們現在面臨的挑戰實際上是根據指南，第三季的毛利率。

What we expected was Cable TV gross margin to come in, significantly higher than our data center business.

我們預計有線電視毛利率將會顯著高於我們的資料中心業務。

And in Q3, we had some cost overruns and things, as we start to ramp this product.

在第三季度，當我們開始增加該產品時，我們出現了一些成本超支之類的情況。

So, we're expecting that gross margin to not be, where we wanted to ultimately settle out.

因此，我們預計毛利率不會達到我們最終想要解決的水平。

So for us, the excitement in Q3 around the revenue ramp in CATV is real.

因此，對我們來說，第三季有線電視營收成長確實令人興奮。

It's a little bit muted, because of the additional expenses that we're incurring, but those are temporary.

由於我們產生了額外費用，所以聲音有點小，但這些都是暫時的。

Great.

偉大的。

And just the last one, hopefully easy.

最後一個，希望很簡單。

The share count is jumping in the guidance for the third quarter.

第三季指引中的股票數量正在增加。

Could you just help explain that?

你能幫忙解釋一下嗎？

Thank you.

謝謝。

Yeah, I mean, it's a combination of stock grants that have already been made, and some provision for additional issuance of shares.

是的，我的意思是，這是已經授予的股票和額外發行股票的一些準備金的組合。

Great.

偉大的。

Thank you.

謝謝。

Tim Savageaux, Northland Capital Markets.

Tim Savageaux，北國資本市場。

Hi, good afternoon, and congrats on the outlook in particular and the new win.

大家好，下午好，特別祝賀您的前景和新的勝利。

Just to go back on, well, kind of the guidance, I guess, it sounds like based on your answer to the last question, maybe as we look into this solid increase with Q4, the expected seller rate, sorry, Q3, the expected seller rate into Q4, seems like maybe it's 50-50, data center and cable.

只是回顧一下，嗯，某種指導，我想，這聽起來像是基於您對上一個問題的回答，也許當我們研究第四季度的穩步增長時，預期的賣家率，對不起，第三季度，預期的第四季度的賣家利率似乎可能是 50-50，資料中心和電纜。

But any more color on - for this $20 million sequential increase you're looking for, is that about right and thinking about where it's coming from?

但還有更多的顏色嗎 - 對於您正在尋找的 2000 萬美元的連續增長，這是否正確並考慮它來自哪裡？

And then, I will follow-up?

然後我會跟進嗎？

In Q3, more of the additional revenue is coming from cable than data center.

第三季度，更多的額外收入來自電纜而不是資料中心。

And in Q4, the opposite we think will be true.

在第四季度，我們認為情況恰恰相反。

That is data center will outgrow Cable TV and a dollar base in Q4 sequentially.

也就是說，資料中心的成長將在第四季度連續超過有線電視和美元基礎。

It sure did, and that's super helpful.

確實如此，這非常有幫助。

And then, just on the quarter, you had a new 10% customer pop up in data center, I assume not a new customer.

然後，就在這個季度，資料中心突然出現了 10% 的新客戶，我想這不是新客戶。

And it looks like Microsoft is pretty flat from an absolute dollar standpoint, but you did see an increase in 100 gig.

從絕對美元的角度來看，微軟的表現相當平淡，但你確實看到了 100 兆的成長。

So should we assume that one of the maybe not hyperscale, but big kind of internal, I guess we're in data centers for internal capabilities, you've had a few of those guys, not necessarily internal, but associated with the business.

因此，我們是否應該假設其中一個可能不是超大規模的，而是大型內部的，我想我們在資料中心中具有內部功能，你已經有一些這樣的人，不一定是內部的，而是與業務相關的。

I can think of a few names that might fit that bill and doing a lot of AI investing, and maybe pulling along 100 gig or any more color on that new customer joining the list there?

我能想到一些可能符合這個要求的名字，並進行大量的人工智慧投資，也許會為加入名單的新客戶帶來 100 億美元或更多的色彩？

No, the customer that popped up above 10%, it has been a customer for a while, but that's not the new customer that we were referring to.

不，突然出現超過 10% 的客戶，它已經成為客戶一段時間了，但這不是我們所說的新客戶。

However, it is another hyperscale customer.

然而，它是另一個超大規模客戶。

And they're predominantly buying 400 gig, not 100 gig.

他們主要購買 400 演出，而不是 100 演出。

And they're doing that, because they're aggressively building out their AI infrastructure as well.

他們正在這樣做，因為他們也在積極建立人工智慧基礎設施。

Okay.

好的。

And we'll - not to be dense here, but this is not

我們會 - 不要在這裡太密集，但這不是

-

-

The customers up on a revenue basis, they've grown almost 4x since Q1 in terms of their purchasing.

從營收來看，客戶的購買量自第一季以來成長了近 4 倍。

Great, awesome color, but that's not the new hyperscaler that you're referencing.

很棒，很棒的顏色，但這不是您引用的新超大規模。

Or is it?

或者是嗎？

Right, it's not.

對，不是。

It's not.

它不是。

Okay.

好的。

And I guess last question started parse semantic so much here, but you mentioned the newer 400 gig customer.

我想最後一個問題在這裡開始解析語義，但你提到了較新的 400 gig 客戶。

I think Thompson referred to that as a new customer, but is it better referred to as a historical customer that's come back, or this is a net new customer for applied offer?

我認為湯普森將其稱為新客戶，但將其稱為回來的歷史客戶更好，還是應用報價的淨新客戶？

So, we would classify a customer that hasn't stayed done business with us in a while, two years or something as a new customer, because it really is a new interaction for us.

因此，我們會將一段時間、兩年或更長時間沒有與我們開展業務的客戶歸類為新客戶，因為這對我們來說確實是一次新的互動。

Okay.

好的。

Great and should we….?

太好了，我們應該…？

Sorry, please go ahead.

抱歉，請繼續。

I guess the last one was on, I hear you on the gross margin with the ramp in Q3 and the pressure coming out of cable.

我想最後一個已經開始了，我聽到你談到第三季的毛利率和來自電纜的壓力。

And you've given not guidance, but at least some directional idea on Q4 for revenue.

您沒有給出指導，但至少提供了有關第四季度收入的一些方向性想法。

Do you think, and maybe you said this, do you think you'll be able to resolve some of those gross margin issues in cable and Q4 to drive gross margin types?

您是否認為，也許您說過這樣的話，您是否認為您能夠解決有線電視和第四季的一些毛利率問題，以推動毛利率類型？

That's it from me.

這就是我說的。

Yeah, I think a lot of the extra costs that we're incurring in the production are really Q3.

是的，我認為我們在製作中產生的許多額外成本確實是第三季的。

I think by Q4 we'll have most of that recovered.

我認為到第四季我們將恢復大部分。

It may take us another quarter to get entirely back to where we expected to settle out longer-term, which would be circa 40%, maybe a little bit higher.

我們可能還需要一個季度才能完全恢復到我們預期的長期穩定水平，即大約 40%，甚至更高一點。

So I think the bulk of the extra expense will be resolved by Q4.

因此，我認為大部分額外費用將在第四季度解決。

That's driving gross margin.

這正在推動毛利率的成長。

Thanks very much.

非常感謝。

(Operator Instructions) Dave Kang, B. Riley FBR.

（操作員說明）Dave Kang，B. Riley FBR。

Yeah, thank you.

是的，謝謝。

First question is just a follow-up on Tim's question about third quarter as well as fourth quarter for that matter.

第一個問題只是提姆關於第三季和第四季問題的後續。

You expect data com, to drive strong growth, especially in fourth quarter.

您預計數據通訊將推動強勁成長，尤其是在第四季度。

Just can you provide a little bit more color, more flavor, you know, whether it's 100 gig, 400 gig, 800 gig, any additional color would be appreciated?

只是你能提供更多一點的顏色，更多的味道嗎，你知道，無論是 100 GB、400 GB、800 GB，任何額外的顏色都會受到讚賞嗎？

Sure, it's expected to be mostly 400 gig and some contribution from 800 gig in Q4.

當然，預計第四季大部分是 400 場演出，還有 800 場演出的部分貢獻。

Got it.

知道了。

Because it's very relative to this table.

因為它與這張表非常相關。

Got it.

知道了。

And then just Microsoft AOC program sounds like starting to ramp.

然後，微軟 AOC 計畫聽起來似乎開始加速。

And you're still sticking with $300 million, because I'm wondering if you think maybe by exiting at what level to give us some comfort, maybe you can do $100 million next year.

你仍然堅持 3 億美元，因為我想知道你是否認為也許透過在什麼水平退出來給我們一些安慰，也許你明年可以做 1 億美元。

I mean, you think you can do $20 million, $25 million exiting this year?

我的意思是，你認為你今年可以賺 2000 萬、2500 萬美元退出嗎？

Or what, I guess, what are they forecasting?

或者，我猜，他們預測什麼？

I mean, I think it remains to be seen.

我的意思是，我認為這還有待觀察。

I think it would be tough to get all the way up to $25 million, let's say, in Q4.

我認為第四季要一路達到 2500 萬美元是很困難的。

Things as we noted in our prepared remarks earlier, things in that project have gotten off to a slower start than what we had expected.

正如我們在先前準備好的評論中指出的那樣，該專案的啟動速度比我們預期的要慢。

They are starting to ramp, however, so, you know, we're still sticking with that $300 million aggregate number.

然而，它們已經開始增加，所以，你知道，我們仍然堅持 3 億美元的總數。

Just a little bit later to get started than we expected.

只是比我們預期的晚一點。

Got it.

知道了。

And then on 800 gig in our previous meeting, you talked about two hyperscalers ramping in third quarter.

然後在我們之前的會議上的 800 場演出中，您談到了第三季的兩家超大規模企業。

Now I think you said in the prepared remarks, now it's pushed the fourth quarter.

現在我想你在準備好的發言中說過，現在已經推遲到第四季了。

Did I hear that correctly?

我沒聽錯嗎？

And are we talking about - same hyperscalers or different customers?

我們談論的是相同的超大規模提供者還是不同的客戶？

Yeah.

是的。

I remember correctly, the commentary you had was that - we would expect 800 gig sales for one or two hyperscale customers in late Q3 or early Q4.

我沒記錯的話，您收到的評論是 - 我們預計在第三季末或第四季初為一兩個超大規模客戶提供 800 份零工銷售。

And that's pretty consistent with what we're seeing now.

這與我們現在所看到的非常一致。

There are scenarios where we could literally get some orders in Q3, but I think if you saw enough that I'm more comfortable putting into the Q4 thing.

在某些情況下，我們實際上可以在第三季度獲得一些訂單，但我認為，如果您看到足夠的信息，我會更願意投入第四季度的訂單。

But it's not a dramatic change from what we had talked about it.

但這與我們討論的內容相比並沒有發生巨大的變化。

And my last question is on gross margin.

我的最後一個問題是關於毛利率。

I think you said the long-term target is 40%.

我想你說長期目標是40%。

Are we talking like the second half of next year?

我們是在談論明年下半年嗎？

And if so, what kind of volume would you require for you to hit your target?

如果是這樣，您需要多少量才能達到目標？

It's not as much about volume as it is about product mix.

重要的不是數量，而是產品組合。

Dave, that's what we were talking about earlier.

戴夫，這就是我們之前討論的。

I mean the products that we have in our portfolio will have in our portfolio within the next year or so, have gross margins that range from in excess of 40% to somewhere in the low 20s.

我的意思是，我們的產品組合中的產品將在未來一年左右的時間內出現在我們的產品組合中，其毛利率範圍從超過 40% 到 20% 以下。

And actually, there's probably a few products that are even below that.

事實上，可能有一些產品甚至低於這個水平。

But in terms of the major products, so it's the mix between those products.

但就主要產品而言，這是這些產品之間的混合。

And in particular, the cable TV products generally come in, especially the DOCSIS 4.0 products are going to come in at a higher gross margin towards that upper end of the range that I mentioned a minute ago.

特別是，有線電視產品，尤其是 DOCSIS 4.0 產品，將以更高的毛利率進入我一分鐘前提到的範圍上限。

And some of the 800 gig products will come in at pretty high gross margins as well.

一些 800 場演出的產品也將獲得相當高的毛利率。

And the third factor that's going to drive the gross margins up, is the shift in 400 gig from predominantly multi-mode optics to single mode optics.

第三個推動毛利率上升的因素是 400 gig 從多模光學器件為主轉向單模光學元件。

So, we've seen some customer interest in particular, some of the new customer interactions that we talked about earlier.

因此，我們特別看到了一些客戶的興趣，以及我們之前討論過的一些新的客戶互動。

Those have been for single mode for 400 gig optics, which are significantly more expensive and have better gross margin than the multimode optics.

這些適用於 400 gig 光學的單模，與多模光學元件相比，它們的價格要高得多，而且毛利率更高。

So all three of those things are what will combine to drive gross margin up.

因此，所有這三件事將共同推動毛利率上升。

Got it.

知道了。

Thank you.

謝謝。

Thank you.

謝謝。

And ladies and gentlemen, this concludes our question-and-answer session.

女士們、先生們，我們的問答環節到此結束。

I'd like to turn the call back over to Dr. Thompson Lin for closing remarks.

我想將電話轉回給 Thompson Lin 博士做總結演講。

Okay.

好的。

Thank you for joining us today.

感謝您今天加入我們。

As always, we want to extend a thank you to our investors, customers and employees for your continued support, as we discussed today, we believe the long-term demand drivers remain strong for both our datacenter and CATV business, and we believe we are well positioned to capitalize on these opportunities.

一如既往，我們要感謝我們的投資者、客戶和員工的持續支持，正如我們今天所討論的，我們相信我們的數據中心和有線電視業務的長期需求驅動因素仍然強勁，我們相信我們充分利用這些機會。

Thank you.

謝謝。

Thank you, Dr. Lin.

謝謝你，林醫師。

This concludes today's conference call.

今天的電話會議到此結束。

We thank you all for attending today's presentation.

我們感謝大家參加今天的演講。

You may now disconnect your lines, and have a wonderful evening.

您現在可以斷開線路，度過一個美好的夜晚。