祥茂光電 (AAOI) 2024 Q3 法說會逐字稿

Good day and welcome to the Applied Optoelectronics Q3 2024 financial results conference call, (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加應用光電 2024 年第三季財務業績電話會議，（操作員說明）請注意此活動正在錄製中。

I would now like to turn the conference over to Cassidy Patterson Investor relations for AOI.

我現在想將會議轉交給 AOI 投資者關係部門的 Cassidy Patterson。

This is Patterson.

這是帕特森。

You may begin.

你可以開始了。

Thank you.

謝謝。

I'm Cassidy Patterson.

我是卡西迪·帕特森。

Investor relations replied optoelectronics.

投資人關係回復光電。

I'm pleased to welcome you to AOI's third quarter, 2024 financial results conference call after the market closed today.

我很高興歡迎您參加今天收盤後 AOI 2024 年第三季財務業績電話會議。

AOI issued a press release announcing its third quarter, 2024 financial results and provided its outlook for the fourth quarter of 2024.

AOI 發布新聞稿，公佈了 2024 年第三季財務業績，並提供了 2024 年第四季的展望。

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 founder, Chairman and CEO and Dr Stephen Murray AOI's Chief Financial Officer and Chief Strategy Officer Thompson will give an overview of AOI's Q3 results and Stefan will provide financial details and the outlook for the fourth quarter of 2024.

參加今天的電話會議的是AOI 創辦人、董事長兼執行長Thompson Lin 博士和AOI 財務長兼首席策略長Stephen Murray 博士。第四季的前景。

A question answer session will follow our prepared remarks before we begin.

在我們開始之前準備好的發言之後將進行問答環節。

I'd like to remind you to review AOI's safe Harbor statement on today's call management will make forward-looking statements.

我想提醒您查看 AOI 的安全港聲明，今天的通話管理將做出前瞻性聲明。

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 achievement 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，可能導致公司或其行業的實際結果、活動水平、業績或成就與此類前瞻性陳述中明示或暗示的結果存在重大差異聲明。

In some cases, you can identify forward-looking statements by terminology such as believe forecast anticipates, estimates suggest intends predicts expects plans may should, could would will potentially or thinks or by the negative of those terms or similar expressions that convey uncertainty of future events or outcomes.

在某些情況下，您可以透過術語來識別前瞻性陳述，例如相信預測預期、估計建議打算預測預期計劃可能應該、可能會潛在或認為或透過這些術語的否定或傳達未來事件不確定性的類似表達或結果。

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.

雖然該公司認為這些預期、假設、估計和預測是合理的。

Thus, forward-looking statements are only predictions and involve known and unknown risks and uncertainties.

因此，前瞻性陳述僅是預測，涉及已知和未知的風險和不確定性。

Many of which are beyond the company's control, forward-looking statements also include statements regarding management's beliefs and expectations related to the expansion of the reach of its products into new markets and customer responses to its innovations.

其中許多超出了公司的控制範圍，前瞻性陳述還包括有關管理層對其產品範圍擴展到新市場以及客戶對其創新的反應的信念和期望的陳述。

As well as statements regarding the company's outlook for the fourth quarter of 2024 except as required by law AOI assumes no obligation to update these 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.

以及有關公司 2024 年第四季度前景的聲明，除非法律要求，否則 AOI 不承擔在本次財報電話會議日期後以任何理由更新這些前瞻性聲明以使這些聲明符合實際結果或變化的義務在公司的期望中。

More information about other risks that may impact the company's businesses are set forth in the risk factor section of AOI's report on file with the SEC including the company's annual report on form 10-K and quarterly reports 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 AOI 向 SEC 提交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-Q 表中的季度報告。

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

此外，除非特別說明，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。

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 the company's earnings press release that is available on AOI's website.

否則，非 GAAP 財務指標不應被單獨考慮或作為根據 GAAP 準備的結果的替代品、我們的 GAAP 指標與非 GAAP 指標之間的調整以及對我們為何提出非 GAAP 財務指標的討論。該公司的盈利新聞稿中，該新聞稿可在AOI 網站上取得。

Before moving to the financial results.

在轉向財務表現之前。

I'd like to note that AOI management is attending the Needham virtual Security networking and communications conference on November 19, the Roth 13 annual technology event on November 20 in New York, the Raymond James TMT and Consumer Conference.

我想指出的是，AOI 管理層將參加 11 月 19 日舉行的 Needham 虛擬安全網路和通訊會議、11 月 20 日在紐約舉行的 Roth 13 年度技術活動以及 Raymond James TMT 和消費者會議。

On December 10 in New York and Northam's virtual growth conference on December 12.

12 月 10 日在紐約舉行，12 月 12 日在諾瑟姆舉行虛擬成長會議。

We'd like to note that the date of AOI's fourth quarter and full year 2024 earnings call is currently scheduled for February 26 2025.

我們想指出的是，AOI 2024 年第四季和全年財報電話會議的日期目前定於 2025 年 2 月 26 日。

Now I'd like to turn the call over to Dr Thompson Lin AOI's, Chairman and CEO Thompson.

現在我想將電話轉給 AOI 董事長兼執行長 Thompson Lin 博士。

Thank you Cassidy and thank you for joining our call.

謝謝卡西迪，也謝謝您加入我們的通話。

Today.

今天。

We have a so called performance.

我們有一個所謂的表演。

As we run up production capacity to meet our customer rollout schedules.

當我們提高產能以滿足客戶的推出計劃時。

We recorded strong double digit growth in our data center business driven by new wins for our 400 G products.

受 400 G 產品新勝利的推動，我們的資料中心業務實現了兩位數的強勁成長。

While our CATV business more than tripled from the second quarter.

而我們的有線電視業務比第二季度成長了兩倍多。

As our customers actively transition to new architectures.

隨著我們的客戶積極過渡到新架構。

During the third quarter, we delivered revenue of $65.2 million which was a high end of our guidance range of $50 million to $66 million.

第三季度，我們實現了 6,520 萬美元的收入，這是我們 5,000 萬至 6,600 萬美元指導範圍的高端。

We recorded non-GAAP margin of 25% which was in line with our guidance range of 24% to 26%.

我們的非 GAAP 利潤率為 25%，符合我們 24% 至 26% 的指導範圍。

Our loss per share of $0.21 was larger than expected and above our current range of loss of $0.14 to $0.20 per share due primarily to accelerated R&D spending due to greater then anticipate new customer requests especially in our data center business where we saw notable interest in our 1.6 Terabit transceivers total revenue for data center products of $40.9 million was down 16% year over year.

我們的每股虧損為0.21 美元，高於預期，也高於目前每股虧損0.14 美元至0.20 美元的範圍，這主要是由於新客戶需求超出預期，特別是在我們的資料中心業務中，我們看到了對我們的資料中心業務的顯著興趣，導致研發支出加速。

But up 90% sequentially revenue for all one product decreased 24% year over year.

但所有一種產品的營收則是環比成長 90%，年減 24%。

While revenue for all 400 products increased 114% in the same period.

而所有 400 種產品的營收同期成長了 114%。

We are pleased to report that we have begun to receive initial orders for 400 product from another large type of scale customer.

我們很高興地報告，我們已開始收到另一家大型客戶的 400 件產品的首批訂單。

And we are very excited about this new customer interaction.

我們對這種新的客戶互動感到非常興奮。

We have already become shipment on this relative small initial orders.

我們已經開始對這個相對較小的初始訂單進行發貨。

We expect additional orders from this customer in this quarter and into 2025 for both 400 G and 800 G products total revenue in our CATV segment was $20.9 million which was up one year, 4% year over year and lost 260% sequentially largely driven by shipment of our 1.8 gigahertz improvisers for all major MOS customers.

我們預計該客戶在本季和 2025 年將收到更多 400 G 和 800 G 產品訂單。我們為所有主要MOS 客戶提供1.8 GHz 即興演奏。

As we have discussed on our prior earning calls.

正如我們在之前的財報電話會議中所討論的那樣。

Our MS O customers are in the process of transition from doses 3.1 to doses 4.0.

我們的 MS O 客戶正在從劑量 3.1 過渡到劑量 4.0。

This initial ramp in CATV sales in Q3 was in line with our expectations and we continue to expect additional growth as MOS upgrades increase in intensity next year.

第三季 CATV 銷售的初步成長符合我們的預期，隨著明年 MOS 升級力度的加大，我們繼續預期銷售將進一步成長。

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

接下來，我將把電話轉給 Stefan，以審查我們第三季表現和第四季 Stefan 的細節。

Thank you Thompson.

謝謝你湯普森。

As Thompson mentioned our revenue and non-GAAP gross margin for the third quarter were in line with our expectations.

正如湯普森所提到的，我們第三季的收入和非公認會計準則毛利率符合我們的預期。

Our non-GAAP loss per share was unfavorable compared to our expectations due to higher than expected operating expenses as we accelerated R&D spending due to greater than anticipated new customer requests, especially in our data center business where we saw notable interest in our 1.6 Terabit transceivers after our strong showing at the European Conference on Communications in Frankfurt in September.

與我們的預期相比，我們的非公認會計原則每股虧損是不利的，因為我們的新客戶需求超出了預期，因此我們加速了研發支出，特別是在我們的資料中心業務中，我們看到人們對我們的1.6 太比特收發器表現出了濃厚的興趣，因此營運費用高於預期繼我們九月份在法蘭克福舉行的歐洲通訊會議上表現出色之後。

During the third quarter, we continued to execute on many of the initiatives that we laid out earlier.

在第三季度，我們繼續執行我們之前製定的許多舉措。

This year.

今年。

We discussed on our Q2 call how we have begun to receive orders for the 400 G products from another large hyperscale customer.

我們在第二季電話會議上討論了我們如何開始從另一家大型超大規模客戶收到 400 G 產品的訂單。

This quarter, we continued to receive new orders from this customer and we remain very excited about this opportunity.

本季度，我們繼續收到該客戶的新訂單，我們對這個機會仍然感到非常興奮。

We have already begun shipments on these relatively small initial orders and we expect additional orders from this customer in the fourth quarter and into 2025 for both 400 G and 800 G products.

我們已經開始出貨這些相對較小的初始訂單，預計該客戶將在第四季度和 2025 年收到 400 G 和 800 G 產品的更多訂單。

We also discussed on our Q2 call, how we had begun to receive forecasted orders for the pixel based 400 G active optical cables for which Microsoft provided development funding.

我們也在第二季電話會議上討論了我們如何開始收到基於像素的 400 G 有源光纜的預測訂單，微軟為其提供了開發資金。

Last year, we have continued to see additional orders and shipments for our AOC products and new forecasts that indicate stronger growth in 2025.

去年，我們繼續看到 AOC 產品的訂單和出貨量增加，並且新的預測表明 2025 年將出現更強勁的成長。

Lastly, in our CATV business in line with our expectations.

最後，我們的有線電視業務符合我們的預期。

We saw a vast improvement in our cat results in Q3, our MOS customers need to place these orders in order to stock their distribution pipelines ahead of their more aggressive upgrade plans in 2025.

我們看到第三季的貓結果有了巨大的改善，我們的 MOS 客戶需要下這些訂單，以便在 2025 年更積極的升級計劃之前儲備他們的分銷管道。

Turning to our third quarter results, our total revenue was $65.2 million which was up 4% year over year and up 51% sequentially and was at the high end of our guidance range of $60 million to $66 million.

談到我們第三季的業績，我們的總收入為 6,520 萬美元，年增 4%，環比成長 51%，處於我們 6,000 萬至 6,600 萬美元指導範圍的高端。

During the third quarter, 63% of revenue was from our data center products. 32% was from CATV products with the remaining 5% from FTTH Telecom and other in our data center business, Q3 revenue came in at $40.9 million which decreased 16% year over year and increased 19%.

第三季度，63%的營收來自我們的資料中心產品。 32% 來自 CATV 產品，其餘 5% 來自 FTTH 電信和我們資料中心業務的其他業務，第三季營收為 4,090 萬美元，年減 16%，較去年同期成長 19%。

Sequentially.

依次。

The decline in revenue from Q3 2023 is largely due to price reductions with certain customers that took effect earlier this year along with non-recurring engineering revenue from Microsoft last year, which did not recur this year.

2023 年第三季營收下降的主要原因是今年稍早對某些客戶實施的降價，以及微軟去年的非經常性工程收入（今年沒有重複）。

The sequential increase is due to new customer wins in the past several quarters along with the continued growth of 400 G with existing customers in the third quarter, 67% of data center revenue was from 100 G products. 27% was from 200 G and 400 G transceiver products and 4% was from 40 G transceiver.

環比成長得益於過去幾季新客戶的贏得以及第三季400G現有客戶的持續成長，資料中心營收的67%來自100G產品。 27%來自200G和400G收發器產品，4%來自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 400 G products and beyond, this included a development program to make next generation lasers for its data centers and for the development of its 400 G and next generation active optical cables.

正如我們在之前的幾次財報電話會議上所討論的那樣，我們於2023 年與微軟簽署了兩項開發400 G 及以上產品的協議，其中包括一項為其數據中心製造下一代激光器的開發計劃以及開發其400 G 雷射的開發計畫。

While not guaranteed, we continue to believe that the revenue opportunity for our 400 G and 800 G products could be greater and longer duration than the revenue contribution we saw from this customer during the peak of the 40 G product cycle which suggests that revenue from these products may exceed $300 million over the several years of these buildups in Q3, we are pleased to report that we saw a slight increase in business as we received additional orders and began shipments for our products.

雖然不能保證，但我們仍然相信，我們的400 G 和800 G 產品的收入機會可能比我們在40 G 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，這表明來自這些產品的收入在第三季的幾年中，我們的產品可能會超過 3 億美元，我們很高興地報告，隨著我們收到更多訂單並開始發貨，我們的業務略有增長。

Looking ahead, we continue to believe that this business will ramp further in Q4 and into 2025 as our data center customers work on building out their next generation AI focused data center architectures.

展望未來，我們仍然相信，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，該業務將在第四季度和 2025 年進一步成長。

We remain very active in our 800 G qualification efforts with several hyperscale customers.

我們仍然非常積極地與多家超大規模客戶一起進行 800 G 認證工作。

We continue to believe that we will begin to receive orders for 800 G products in Q4 of this year.

我們仍然相信，我們將在今年第四季開始收到 800G 產品的訂單。

With the ramp expected thereafter in our CATV business revenue in the third quarter was $20.9 million which was up 104% year over year and up 260%.

隨著此後預計我們 CATV 業務的成長，第三季營收為 2,090 萬美元，年增 104%，年增 260%。

Sequentially, as I mentioned before, the significant increase is due to the ramp in orders for our 1.8 gigahertz amplifier products.

接下來，正如我之前提到的，顯著成長是由於我們的 1.8 GHz 擴大機產品訂單的增加。

We continue to believe our CATV revenue will ramp further in Q4 and into 2025.

我們仍然相信我們的 CATV 收入將在第四季度和 2025 年進一步成長。

I'd like to take a moment to provide some additional color on the upcoming Doxas 4.0 transition.

我想花點時間為即將到來的 Doxas 4.0 過渡提供一些額外的資訊。

As MSOs look to expand upstream bandwidth by increasing the frequency content available for upstream transmission, they need to change and replace their current amplifiers and nodes by using DOCSIS 4.0 which expands frequencies up to 1.8 gigahertz MSOs are able to replace their current hardware without cutting into their downstream bandwidth.

由於MSO 希望透過增加可用於上行傳輸的頻率內容來擴展上行頻寬，因此他們需要使用DOCSIS 4.0 來更改和替換當前的放大器和節點，該DOCSIS 4.0 將頻率擴展至1.8 GHz MSO 能夠在不削減現有硬體的情況下更換當前的硬體他們的下行頻寬。

As I mentioned before.

正如我之前提到的。

While some MSOs have stated that they do not plan to deploy, do's 4.0 upgrades until 2025 or later.

雖然有些 MSO 表示不打算部署，但會在 2025 年或更晚之前進行 4.0 升級。

We have begun delivering initial orders so that they are capable of deployments when they are ready to make the transition with this in mind.

我們已經開始交付初始訂單，以便他們在準備好進行過渡時可以部署。

However, the timing of deployment by our MOS customers of our amplifiers does not depend on the timing of DOX 4.0.

然而，我們的 MOS 客戶部署我們擴大機的時間並不取決於 DOX 4.0 的時間。

In fact, we believe at least one major MOS is committed to an AMP first strategy whereby amplifiers capable of DOCSIS 4.0 are deployed ahead of the nodes and RPDs that will be needed to fully enable DOCSIS 4.0 in the future by deploying new amps, an MOS can enable higher bandwidth splits in the upstream direction which provides much needed additional bandwidth.

事實上，我們相信至少有一個主要的MOS 致力於AMP 優先策略，即在節點和RPD 之前部署支援DOCSIS 4.0 的放大器，透過部署新的放大器（MOS）在未來完全啟用DOCSIS 4.0 所需的節點和RPD之前可以在上行方向實現更高的頻寬分割，從而提供急需的額外頻寬。

In addition, MSOs could take advantage of AOI's revolutionary quantum link technology to gain insight into their network operation and we believe improve their customers' experience while reducing maintenance spend all while waiting for DOCS, 4.0 nodes and RPD hardware to be available.

此外，MSO 可以利用 AOI 革命性的量子鏈路技術來深入了解其網路運營，我們相信，在等待 DOCS、4.0 節點和 RPD 硬體可用的同時，可以改善客戶體驗，同時減少維護支出。

Now, turning to our telecom segment revenue from our telecom products of $2.8 million was down 9% year over year and up 18%.

現在，我們的電信產品收入為 280 萬美元，年減 9%，但年增 18%。

Sequentially, looking ahead, we continue to expect telecom sales to fluctuate from quarter to quarter for the third quarter.

因此，展望未來，我們繼續預期第三季電信銷售額將出現季度波動。

Our TOP10 customers represented 96% of revenue in line with Q3 of last year, we had three greater than 10% customers, two in the data center market which contributed 41% and 16% of total revenue respectively and one in the CATV market which contributed 34% of total revenue.

與去年第三季一樣，我們的TOP10客戶佔營收的96%，我們有3個超過10%的客戶，兩個來自資料中心市場，分別貢獻了總營收的41%和16%，一個來自CATV市場，貢獻了總收入的41%和16%。

In addition to these three customers, we have had meaningful conversations with an additional hyperscale customer who has begun to re engage with us in preparation for future data center upgrades.

除了這三個客戶之外，我們還與另一位超大規模客戶進行了有意義的對話，該客戶已開始與我們重新接觸，為未來的資料中心升級做準備。

We believe we are in a position to ramp production to meet their needs and have already received some small initial orders with additional orders expected in Q4 and into 2025.

我們相信我們有能力提高產量以滿足他們的需求，並且已經收到了一些小額初始訂單，預計第四季度和 2025 年還會有額外訂單。

In Q3, we generated non-GAAP gross margin of 25% which was within our guidance range of 24% to 26% and was up from 22.5% in Q2 of 2024 and down from 32.5% in Q3 of 2023.

第三季度，我們的非 GAAP 毛利率為 25%，在我們 24% 至 26% 的指引範圍內，高於 2024 年第二季的 22.5%，低於 2023 年第三季的 32.5%。

Looking ahead, we expect gross margins to improve, as we see the impact of manufacturing efficiencies in our CATV, production and improving product mix.

展望未來，我們預計毛利率將會改善，因為我們看到了有線電視、生產和改進產品組合的製造效率的影響。

We remain committed to our long term goal of returning our non-GAAP gross margin to around 40% and continue to 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，並繼續相信這一目標是可以實現的。

Total non-GAAP operating expenses in the third quarter were $27.9 million or 42.9% of revenue, which compared to $21.4 million or 34.2% of revenue in Q3 of the prior year, primarily due to accelerated R&D spending due to greater than anticipated new customer requests, especially in our data center business where we saw notable interest in our 1.6 Terabit transceivers also increasing year over year were R&D.

第三季非 GAAP 營運支出總額為 2,790 萬美元，佔營收的 42.9%，而上年第三季為 2,140 萬美元，佔營收的 34.2%，這主要是由於新客戶需求超出預期而加速研發支出尤其是在我們的資料中心業務中，我們發現人們對我們的1.6 太比特收發器的研發興趣也逐年增加。

Expenses related to our 1.8 gigahertz CATV amplifier products and additional expenses related to expedited shipping costs for the production ramp up of these products and non-recurring trade show expenses that were incurred in the third quarter, which we do not expect to incur in the fourth quarter.

Expenses related to our 1.8 gigahertz CATV amplifier products and additional expenses related to expedited shipping costs for the production ramp up of these products and non-recurring trade show expenses that were incurred in the third quarter, which we do not expect to incur in the fourth四分之一.

Looking ahead, we expect non-GAAP operating expenses to tick up slightly next quarter and range from $28 million to $30 million due to higher R&D spend largely generated by additional new customer opportunities.

展望未來，我們預計下季非 GAAP 營運費用將小幅上升，範圍為 2,800 萬美元至 3,000 萬美元，因為研發支出增加主要是由額外的新客戶機會產生的。

We are pursuing non-GAAP operating loss in the third quarter was $11.7 million compared to an operating loss of $1 million in Q3 of the prior year, GAAP net loss for Q3 was $17.8 million or a loss of $0.42 per basic share compared with GAAP net loss of $9 million or a loss of $0.27 per basic share in Q3 of 2023 on a non-GAAP basis.

我們預計第三季非GAAP 營運虧損為1,170 萬美元，而上年第三季營運虧損為100 萬美元，第三季GAAP 淨虧損為1,780 萬美元，或與GAAP 淨虧損相比，每股基本股虧損0.42 美元以非公認會計準則計算，2023 年第三季虧損 900 萬美元，或每股基本股虧損 0.27 美元。

Net loss for Q3 was $8.8 million or $0.21 per share which was unfavorable to our guidance range of a loss of $5.9 million to $8.6 million or loss per share in the range of $0.14 to $0.20 per basic share.

第三季淨虧損為 880 萬美元，即每股 0.21 美元，不利於我們的指導範圍，即虧損 590 萬美元至 860 萬美元，或每股基本股虧損 0.14 美元至 0.20 美元。

This compares to a non-GAAP net loss of $1.7 million or a loss of $0.5 per basic share in Q3 of the prior year.

相比之下，去年第三季的非 GAAP 淨虧損為 170 萬美元，或每股基本股虧損 0.5 美元。

The fully diluted shares outstanding used for computing the earnings per share in Q3 were $42.3 million.

用於計算第三季每股收益的完全稀釋後已發行股票為 4,230 萬美元。

Turning now to the balance sheet, we ended the third quarter with $41.4 million in total cash, cash equivalents, short term investments and restricted cash.

現在轉向資產負債表，第三季末我們的現金、現金等價物、短期投資和限制性現金總額為 4,140 萬美元。

This compares with $16.1 million.

相比之下，這一數字為 1610 萬美元。

At the end of the second quarter, we ended the quarter with total debt excluding convertible debt of $39.4 million compared to $27.5 million at the end of last quarter.

截至第二季末，我們的季末債務總額（不包括可轉換債務）為 3,940 萬美元，而上季末為 2,750 萬美元。

As of September 30, we had $64.4 million in inventory which compared to $54.3 million.

截至 9 月 30 日，我們的庫存為 6,440 萬美元，而去年同期為 5,430 萬美元。

At the end of Q2, the increase in inventory is primarily for raw materials to be used for anticipated Q4 production.

在第二季末，庫存的增加主要是用於預期第四季度生產的原材料。

We made a total of $11.4 million in capital investments in the third quarter which was mainly used for production and R&D equipment as well as building improvements to accommodate new production capacity.

第三季我們總共進行了1,140萬美元的資本投資，主要用於生產和研發設備以及建築改進以適應新的產能。

Looking ahead, we expect to make sizable CapEx investments over the next several quarters as we prepare for increased 400 G, 800 G and 1.6 Terabit data center product production.

展望未來，我們預計將在未來幾季進行大量資本支出投資，為增加 400 G、800 G 和 1.6 Terabit 資料中心產品產量做好準備。

In 2025 we expect to finance these investments through a combination of cash on hand, cash generated from operations and some equity sales including possible strategic investments that we are discussing.

到 2025 年，我們預計透過手頭現金、營運產生的現金和一些股權銷售（包括我們正在討論的可能的策略投資）相結合來為這些投資提供資金。

We believe that we are poised for a sustained period of growth in both our data center and CATV businesses and that these capital commitments will be transformational to our company as we execute on these opportunities.

我們相信，我們的資料中心和有線電視業務將持續成長，當我們抓住這些機會時，這些資本承諾將為我們公司帶來變革。

As we disclosed in August, we increased the size of our existing at the market offering with a total of $60 million authorized to date.

正如我們在 8 月所揭露的那樣，我們擴大了現有市場發行規模，迄今為止已授權總額達 6000 萬美元。

We have raised $59.9 million net of commissions and fees under this new program including $38.6 million raised in Q3.

根據這項新計劃，我們已籌集了 5,990 萬美元（扣除佣金和費用），其中包括第三季籌集的 3,860 萬美元。

Moving now to our Q4 outlook.

現在轉向我們的第四季展望。

We expect Q4 revenue to be between $94 million and $104 million and non-GAAP gross margin to be in the range of 27.5% to 29.5%.

我們預計第四季營收將在 9,400 萬美元至 1.04 億美元之間，非 GAAP 毛利率將在 27.5% 至 29.5% 之間。

We expect operating expenses to remain elevated in the near term in the range of 28 million to $30 million resulting in non-GAAP net income expected to be in the range of a loss of $1.9 million to income of $1.7 million and non-GAAP earnings per share between a loss of $0.4 per share and earnings of $0.4 per share using a weighted average basic share count of approximately $46 million shares.

我們預計短期內營運費用將維持在2,800 萬至3,000 萬美元的高位，導致非GAAP 淨利預計將在虧損190 萬美元至收入170 萬美元之間，非GAAP 每股收益預計將在190 萬美元至170 萬美元之間。

Looking ahead, we remain optimistic about the long term demand drivers for both our data center and CATV businesses.

展望未來，我們對資料中心和有線電視業務的長期需求驅動因素保持樂觀。

We believe that we're well positioned to benefit from the tailwinds driven by the adoption of generative AI which we continue to believe will require our data center customers to deploy more infrastructure including more optical interconnects due to our US based production ability and our automated manufacturing capabilities and experience.

我們相信，我們處於有利地位，可以從採用生成式人工智慧所帶來的順風車中受益，我們仍然相信，由於我們基於美國的生產能力和自動化製造，這將要求我們的資料中心客戶部署更多基礎設施，包括更多光互連能力和經驗。

We believe we are uniquely positioned to help our customers meet the significant demands.

我們相信，我們具有獨特的優勢，可以幫助客戶滿足重大需求。

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 architectures and implement new technologies to improve their network's performance.

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新技術以提高其網路效能，我們已經處於非常有利的位置，擁有正確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 operator.

這樣，我會將其轉回給問答會話操作員。

Thank you.

謝謝。

We will now begin the question and answer session to ask a question.

我們現在開始問答環節來提問。

(Operator Instructions) And our first question comes from Michael Genovese from Rosenblatt.

（操作員說明）我們的第一個問題來自 Rosenblatt 的 Michael Genovese。

Please go ahead.

請繼續。

Great.

偉大的。

Thanks and congratulations on the the revenues and the outlook.

感謝並祝賀我們的收入和前景。

I guess my first question is this 1 400 G right?

我想我的第一個問題是這個 1 400 G 對吧？

I mean, it seems like maybe you've seen this coming for a little while that there's higher 400 G demand now from, from multiple customers.

我的意思是，您可能已經看到這種情況已經有一段時間了，現在多個客戶對 400 G 的需求更高。

Just what do you think is driving that?

您認為是什麼推動了這個趨勢？

And, and you know, do you think that that's sustainable or will it start to roll off when we, go to higher

而且，你知道，你認為這是可持續的嗎？

?

？

No, it's, it's being driven by demand from our data center customers for interconnections primarily for their AI networks.

不，它是由我們的資料中心客戶主要為其人工智慧網路互連的需求所驅動的。

And I would not anticipate that that demand is going to decrease in the near term or even medium term 400G is what they're using for their next generation architectures for these applications.

我預計這種需求不會在短期內減少，甚至中期他們在這些應用程式的下一代架構中使用的是 400G。

And we expect the demand to continue and perhaps even grow from here.

我們預計需求將持續下去，甚至可能在此基礎上成長。

As I mentioned, we have at least one new customer that's only beginning to you know, purchase 400G from us.

正如我所提到的，我們至少有一個新客戶，您知道，這才剛剛開始，從我們這裡購買 400G。

And I think there's significant room to ramp with that customer as well as potentially an overall growth in the market as more AI gets deployed.

我認為，隨著更多人工智慧的部署，該客戶還有很大的發展空間，而且市場也有可能實現整體成長。

Great.

偉大的。

And I, I guess on, 800 G. Can you comment, you know what kind of transceivers you expect to be selling within this discussion of VCSELs EMLs and silicon SOIC where you participate in, you know, all three or one or two more than the other.

我，我猜是 800 G。您能評論一下嗎，您知道您希望在 VCSEL EML 和矽 SOIC 的討論中銷售哪種類型的收發器，您參與的所有三個或一兩個以上另一個。

Our primary focus is as has been historical for us, mainly on the edge emitting technology.

我們的主要關注點一如既往，主要集中在邊緣發射技術。

So that would be the electro absorption modulated lasers and also on the Silken photonics based solutions.

這就是電吸收調製雷射以及基於 Silken 光子學的解決方案。

Both of those are the ones that we're pursuing most aggressively.

這兩個都是我們最積極追求的目標。

You know, we do have some interest in pixel based solutions and we do have our own capability for manufacturing VCSELs.

您知道，我們確實對基於像素的解決方案感興趣，並且我們確實擁有製造 VCSEL 的能力。

So you know, there'll probably be some sales, but we're expecting the bulk of the demand that we're going to satisfy to be on the longer distance transmitters.

所以你知道，可能會有一些銷售，但我們預計我們將滿足的大部分需求來自於較長距離的發射機。

Right?

正確的？

And, and then based on all your comments, I mean, it seems like, you know, I guess maybe if we include oracles number five, but if we're really talking about the four kind of household names on, hyper Scalers, it sounds like three are customers now and the other one you're talking to is that fair?

然後，根據你們所有的評論，我的意思是，看起來，你知道，我想也許如果我們包括第五個預言機，但如果我們真的談論超級縮放器上的四種家喻戶曉的名字，它聽起來現在有3 位是客戶，而與您交談的另一位是這樣公平嗎？

Again, you know, without talking about different names, I think, you know, we, do think we have three out of the top five data center customers.

再說一次，你知道，在不談論不同名稱的情況下，我認為，你知道，我們確實認為我們擁有前五個資料中心客戶中的三個。

Yes.

是的。

Okay.

好的。

And then, and then just finally for me, just kind of help us understand.

然後，最後對我來說，只是幫助我們理解。

I mean, the cable is good and I guess that will get, bigger and then, you know, 800 G and then 1.6 is that does that drive higher margins?

我的意思是，電纜很好，我想它會變得更大，然後，你知道，800 G，然後 1.6，這會帶來更高的利潤嗎？

Like what's, what's the outlook for margins over time?

比如說，隨著時間的推移，利潤率的前景如何？

Any detail you give there would be helping?

您提供的任何細節都會有幫助嗎？

I'll pass it on.

我會把它傳遞下去。

Thank you.

謝謝。

Sure.

當然。

So cable TV, margins right now are higher than data center margins.

因此，有線電視目前的利潤率高於資料中心的利潤率。

We do expect cable TV margins to improve.

我們確實預計有線電視利潤率將會改善。

As we noted in our prepared remarks earlier, you know, there's economies of scale efficiencies and things that we need to ring out of the manufacturing process there and we expect that to happen over the next couple of quarters.

正如我們在之前準備好的演講中指出的那樣，您知道，我們需要在製造過程中實現規模經濟效率和一些事情，我們預計這將在未來幾個季度發生。

So there's some room for improvement on the cable TV margins with respect to data center.

因此，相對於資料中心而言，有線電視利潤率還有一些改進的空間。

Yes, the transition to 800 G and 1.6 terabit should be accretive to gross margin as well.

是的，向 800 G 和 1.6 太比特的過渡也應該會增加毛利率。

So that's again, you know, as we said in our prepared remarks, we think, you know, a 40% margin is a good long term target for us to have and you know, growth in both 800 G, 1.6 terabytes and cable is, is really what it's going to take to get there.

因此，正如我們在準備好的演講中所說，我們認為 40% 的利潤率對我們來說是一個很好的長期目標，而且 800 G、1.6 TB 和電纜的增長都是，這確實是到達那裡所需要的。

Thanks so much.

非常感謝。

Yeah, the next question comes from Tim Savageaux from Northland Capital Markets.

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

Please go ahead.

請繼續。

Hey, good afternoon, sorry about that.

嘿，下午好，抱歉。

I just want to talk about the guidance here.

我在這裡只想談談指導。

You're obviously looking for a pretty sharp uptick here in the Q4.

顯然，您希望第四季出現大幅成長。

I think on the last call, you said we expected cable to be a primary driver in Q3 which it looks like it was and maybe shifting back over to data center in Q4 as the primary growth driver.

我想在上次電話會議上，您說我們預計電纜將成為第三季度的主要驅動力，看起來確實如此，並且可能會在第四季度重新轉向資料中心作為主要成長驅動力。

So the question is, does that remain the case?

那麼問題是，情況仍然如此嗎？

And then is, you know, maybe try and comment on some details on what's driving.

然後，你知道，也許可以嘗試評論一些有關驅動因素的細節。

That sounds like a AOCs at Microsoft.

這聽起來像是微軟的 AOC。

It should be ramping up.

它應該正在加速。

Also your new 400 G transceiver customer, you mentioned you also expect some 800 G revenue.

您也是新的 400 G 收發器客戶，您提到您也期望獲得一些 800 G 收入。

If you look at that, I don't know if it's $30 million or so sequential increase in data center.

如果你看一下，我不知道資料中心是否連續增加了 3000 萬美元左右。

Can you give a sense of what are the different factors and our customers driving that.

您能否介紹一下有哪些不同因素以及我們的客戶推動這項因素。

Yeah.

是的。

So overall, our, our expectations regarding Q4 are pretty much what we communicated last time.

總的來說，我們對第四季的期望與我們上次溝通的差不多。

We do see continued growth in cable, but we also see you know, strong growth in, in the data center largely driven by 400 G at this point as has been the case for a while for us.

我們確實看到了電纜的持續成長，但我們也看到，資料中心的強勁成長主要是由 400 G 驅動的，就像我們一段時間以來的情況一樣。

You know, we do actually see some continuing strength in 100 G as well.

您知道，我們實際上也看到了 100 G 的持續優勢。

Interestingly enough and then, you know, the 800 G will be a factor for us a little bit in Q4, but it won't be, won't likely be material in Q4, but it should start to ramp in Q1.

有趣的是，然後，你知道，800 G 將在第四季度成為我們的一個因素，但它不會，不太可能在第四季度發揮重要作用，但它應該在第一季開始成長。

So that's kind of how things break out.

事情就是這樣爆發的。

And then of course, the cable again, as I said earlier, the margins on cable should start to improve in Q4 and Q1 as well.

當然，正如我之前所說，電纜的利潤率也應該在第四季和第一季開始改善。

Okay, great.

好的，太好了。

I just want to make sure I understand your customer commentary.

我只是想確保我理解您的客戶評論。

I don't know if you snuck a new hyper scaler in there in the comments.

我不知道你是否在評論中偷偷添加了一個新的超級縮放器。

So you've had a another 10% customer outside of Microsoft these last couple of quarters that I think you've described as a hyper scaler in the past.

因此，在過去的幾個季度中，您在 Microsoft 之外擁有了另外 10% 的客戶，我認為您過去將其描述為超大規模客戶。

I gather, you know, given your commentary about fairly early days in your new 400 G customer that, you know, you haven't seen those sorts of volumes yet, I guess, you know, what would you expect to in, Q4 and, and might that customer rise to the 10% level and there's, you know, outside of those three, are we missing anybody else in terms of advanced engagements from a, from a hyper scale perspective?

我猜想，鑑於您對新 400 G 客戶的早期評論，您還沒有看到此類數量，我想，您知道，您對第四季度和第四季度的期望是什麼，並且該客戶可能會上升到10％ 的水平，並且您知道，除了這三個之外，從超大規模的角度來看，我們在高級參與方面是否還缺少其他人？

So the 10% customer that we have this quarter on the data center is the same 10% customer that we had last quarter that helps.

因此，本季我們在資料中心擁有的 10% 客戶與上季提供協助的 10% 客戶相同。

And that, that would imply that this new hyperscale customer, which is really a re engaging customer from, I mean, it's not a brand new customer to us.

這意味著這個新的超大規模客戶，這確實是一個重新參與的客戶，我的意思是，它對我們來說不是一個全新的客戶。

It's one that was formerly a pretty sizable customer for us, but we're sort of reengaging with them.

這曾經是我們相當大的客戶，但我們正在重新與他們接觸。

You know, I think they'll, likely grow in Q4.

你知道，我認為它們可能會在第四季度增長。

It's unclear that they're going to grow.

目前還不清楚它們是否會成長。

I would not expect them to be a 10% customer in Q4, especially, you know, given the revenue growth that we're seeing that the bar to get to 10% certainly becomes higher, but we definitely think that they can have to be a 10% customer, you know, in the next few quarters.

我不希望他們在第四季度成為 10% 的客戶，特別是考慮到收入成長，我們看到達到 10% 的門檻肯定會更高，但我們絕對認為他們必須你知道，在接下來的幾個季度裡，將有10% 的客戶。

Okay, great.

好的，太好了。

And maybe last one for me, you've kind of estimated.

也許對我來說是最後一個，你已經估計了。

Well, let me go to another one and you mentioned elevated CapEx and capacity expansion, you know, from a revenue capacity perspective, where are you in the US right now?

好吧，讓我談談另一個問題，您提到資本支出增加和產能擴張，您知道，從收入能力的角度來看，您現在在美國的什麼位置？

And, and where will these capacity investments take you over the next few quarters.

並且，這些產能投資在接下來的幾季將帶您走向何方。

You know, we haven't disclosed the specific revenue number coming out of the US.

你知道，我們還沒有透露來自美國的具體收入數字。

As you can imagine,seeing more contribution our manufacturing operations are pretty integrated across multiple different locations.

正如您可以想像的那樣，看到更多的貢獻，我們的製造業務在多個不同地點之間實現了相當程度的整合。

In other words, we're doing different operations in different places, but we do expect to continue to invest primarily in the US and Taiwan for manufacturing capacity over the next few quarters as we noted in our prepared remarks and that, you know, that allow us to continue to execute on the revenue growth trajectory that we outlined.

換句話說，我們在不同的地方開展不同的業務，但我們確實預計未來幾季將繼續主要投資於美國和台灣的製造能力，正如我們在準備好的發言中指出的那樣，而且，你知道，讓我們能夠繼續按照我們概述的收入成長軌跡執行。

Great.

偉大的。

Thanks.

謝謝。

Well, congrats on the on the results and the outlook.

好吧，恭喜你的結果和前景。

Especially.

尤其。

Appreciate it.

欣賞它。

Thank you.

謝謝。

Again.

再次。

If you have a question, please press star.

如果您有疑問，請按星號。

Then one, our next question comes from James Cook from Raymond James.

然後，我們的下一個問題來自雷蒙德·詹姆斯的詹姆斯·庫克。

Please go ahead.

請繼續。

Yeah, thanks guys, Jeff.

是的，謝謝大家，傑夫。

And for Simon, it sounded like maybe I misheard, but it sounded like maybe the Microsoft supply revenue this quarter was maybe slightly weaker than what we were thinking.

對西蒙來說，聽起來可能是我聽錯了，但聽起來微軟本季的供應收入可能比我們想像的略弱。

I mean, it was up, something like it was up, but maybe it was only like a like less than $5 million still.

我的意思是，它漲了，好像漲了，但也許只是不到 500 萬美元。

Is that fair?

這樣公平嗎？

And do you think that as if that is the case?

您認為情況確實如此嗎？

Are you still confident in, you know, reaching, trying to reach like, I don't know, I like low $20 million run rate next quarter for that business.

你是否仍然有信心，你知道，達到，試圖達到，我不知道，我喜歡該業務下季度 2000 萬美元的低運行率。

So.

所以。

Yeah, it was below $5 million in this quarter.

是的，本季低於 500 萬美元。

With respect to to next quarter, you know, it's, it's hard to say it's ramping, it's ramping a little slower than we expected.

至於下個季度，你知道，很難說它正在成長，它的成長比我們預期的要慢。

That is a fair statement.

這是一個公平的說法。

But you know, we do, we are still committed to reaching that $25 million per quarter level.

但你知道，我們仍然致力於達到每季 2500 萬美元的水平。

It's just unclear which quarter that's going to occur in at this point.

目前尚不清楚這將發生在哪個季度。

So it's more about timing.

所以更重要的是時機。

What we are seeing is a lot of increase in demand, as I mentioned earlier for the 400 G transceiver solutions.

正如我之前提到的 400 G 收發器解決方案，我們看到需求大幅成長。

And again, surprisingly some strength in 100 G as well.

令人驚訝的是，100 G 的強度也令人驚訝。

Yeah, I was going to ask you about that too and especially the 400 G, you know, I guess there's the thinking is that, you know, everybody wants 800 G for the for the back end.

是的，我也想問你這個問題，尤其是 400 G，你知道，我猜大家的想法是，你知道，每個人都希望後端有 800 G。

So 400 G, I'm surprised it's not more front end and then strengthen 100 G sounds like maybe, you know, maybe there's a catch up and, you know, like I guess the legacy, maybe the Legacy Data Center investment it, but you guys, are you guys seeing that at all?

所以 400 G，我很驚訝它不是更多的前端，然後加強 100 G 聽起來也許，你知道，也許有一個趕上，你知道，就像我猜的遺產，也許遺產數據中心投資它，但是你們看到了嗎？

Yeah, I think on both accounts, yes, I mean, you know, it's easy for people to focus on one technology, I think and say, okay, this is where the growth is going to be, but the reality is many of our hyper scale customers are growing their infrastructure, you know, in, multiple different ways, right?

是的，我認為在這兩個方面，是的，我的意思是，人們很容易專注於一項技術，我想並說，好吧，這就是增長的地方，但現實是我們的許多技術超大規模客戶正在以多種不同的方式發展他們的基礎設施，對嗎？

It's not just one thing that they're doing, they're, they're growing their existing infrastructure and they're growing their, you know, new AI focused infrastructure at the same time.

他們正在做的不僅僅是一件事，他們正在發展現有的基礎設施，同時他們也在發展新的以人工智慧為中心的基礎設施。

So, you know, we're excited about all those opportunities.

所以，你知道，我們對所有這些機會感到興奮。

I just, the reason why I highlighted the 100 G is really that I, I want to draw people's attention to the fact that, you know, there's still some significant business opportunities and growth, you know, even outside the AI while we continue to focus our efforts and most of the industry on AI growth.

我只是，我強調 100 G 的原因實際上是，我想提請人們注意這樣一個事實，即，即使在人工智慧之外，仍然存在一些重大的商機和增長，而我們繼續將我們和整個行業的大部分精力集中在人工智慧的成長。

Got it, got it.

明白了，明白了。

Yeah, and maybe just to help on a little bit of help on the gross margin, like you know, go on first next quarter.

是的，也許只是為了對毛利率有幫助，就像你知道的那樣，下個季度繼續進行。

Like is the, you said that cat TV is running above average at this point?

就像是，你說貓電視此時的運作高於平均？

Is, is that as we go to, should that be up again or, or where do you think the magnitude of the improvement?

是嗎，正如我們所面臨的那樣，是否應該再次上升，或者您認為改善的幅度在哪裡？

Where's the biggest part?

最大的部分在哪裡？

Yeah, thanks Jeff.

是的，謝謝傑夫。

I'm sorry, you kind of broke up a little bit there.

抱歉，你們有點分手了。

I understood you're asking about gross margins and what driving, what's driving the gross margin growth in Q4.

我知道您問的是毛利率以及推動第四季毛利率成長的因素。

I'll go ahead and answer that and then hope that was the question that you asked.

我將繼續回答這個問題，然後希望這就是您問的問題。

So, I mean, you know, CATV, as I mentioned earlier, you know, we, just started ramping this 1.8 G product line.

所以，我的意思是，您知道，CATV，正如我之前提到的，您知道，我們剛剛開始擴大這個 1.8 G 產品線。

You could see, you know, going from almost zero to, you know, 21 almost $21 million in the quarter for those products.

你可以看到，這些產品在本季從幾乎為零增長到了 21 近 2,100 萬美元。

I mean, that's a sizable ramp.

我的意思是，這是一個相當大的坡道。

And as you can imagine, when we you know, in the initial phases of that ramp, not everything is, you know, the efficiency in the manufacturing is not where we want it to be initially.

正如您可以想像的那樣，當我們知道時，在斜坡的初始階段，並非一切都如此，您知道，製造效率並未達到我們最初希望的水平。

And so as we go forward in Q4 and in later quarters, we do expect there to be continued expansion in the gross margin in CATV.

因此，隨著第四季和以後幾季的進展，我們確實預期有線電視的毛利率將持續擴大。

In addition, on the data center side, again, you know, seeing more contribution from 400 G and especially, you know, some initial contribution from 800 G which we expect to ramp next year will, improve gross margins in that segment as well.

此外，在資料中心方面，您知道，400 G 的貢獻更大，尤其是 800 G 的一些初步貢獻，我們預計明年將增加，這也將提高該領域的毛利率。

Got it great.

太棒了。

Thank you.

謝謝。

All right.

好的。

Thank you.

謝謝。

At this time, we have no further questions and 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 博士進行總結發言。

Again.

再次。

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.

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。

As we discussed today, we believe the long term demand driver remain strong for both our data center and CATV business and we believe we are well positioned to capitalize on this opportunity.

正如我們今天所討論的，我們相信我們的資料中心和有線電視業務的長期需求驅動因素仍然強勁，並且我們相信我們處於有利地位，可以利用這一機會。

Thank you.

謝謝。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。