祥茂光電 (AAOI) 2022 Q1 法說會逐字稿

Good afternoon. I will be your conference operator. At this time, I would like to welcome everyone to Applied Optoelectronics' Fourth quarter and Full year 2021 (sic) [First Quarter 2022] Earnings Conference Call. (Operator Instructions) Please note that this call is being recorded. I will now turn the call over to Cassidy Fuller, Investor Relations for AOI. Ms. Fuller, you may begin.

下午好。我將成為您的會議接線員。在這個時候，我想歡迎大家參加應用光電的 2021 年第四季度和全年（原文如此）[2022 年第一季度] 收益電話會議。 （操作員說明）請注意，此通話正在錄音中。我現在將把電話轉給 AOI 投資者關係部的 Cassidy Fuller。富勒女士，你可以開始了。

Thank you. I'm Cassidy Fuller, Investor Relations for Applied Optoelectronics, and I'm pleased to welcome you to AOI's First Quarter 2022 Financial Results Conference Call. After the market closed today, AOI issued a press release announcing its first quarter 2022 financial results and provided its outlook for the second quarter of 2022. The release is also available on the company's website at ao-inc.com. 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.

謝謝你。我是應用光電投資者關係部的 Cassidy Fuller，很高興歡迎您參加 AOI 2022 年第一季度財務業績電話會議。今天市場收盤後，AOI 發布了一份新聞稿，宣布了其 2022 年第一季度的財務業績，並提供了 2022 年第二季度的展望。該新聞稿也可在公司網站 ao-inc.com 上查閱。正在錄製此通話並進行網絡直播。錄音鏈接可在 AOI 網站的投資者關係部分找到，並將存檔 1 年。

Joining us on today's call is Dr. Thompson Lin, AOI's Founder, Chairman and CEO; and Dr. Stefan Murry, AOI's Chief Financial Officer and Chief Strategy Officer. Thompson will give an overview of AOI's Q1 results and Stefan will provide financial details and the outlook for the second quarter of 2022. A question-and-answer session will follow our prepared remarks.

加入我們今天的電話會議的是 AOI 創始人、董事長兼首席執行官 Thompson Lin 博士；和 AOI 首席財務官兼首席戰略官 Stefan Murry 博士。 Thompson 將概述 AOI 的第一季度業績，Stefan 將提供財務細節和 2022 年第二季度的展望。問答環節將在我們準備好的評論之後進行。

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 to differ materially from those anticipated in such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as believes, anticipates, estimates, intends, predicts, expects, plans, may, should, could, would, will or thinks, and by other similar expressions that convey uncertainty of future events or outcomes.

在開始之前，我想提醒您查看 AOI 的安全港聲明。在今天的電話會議上，管理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，可能導致公司的實際結果與此類前瞻性陳述中的預期存在重大差異。在某些情況下，您可以通過諸如相信、預期、估計、打算、預測、預期、計劃、可能、應該、能夠、將、將或認為等術語以及傳達不確定性的其他類似表達來識別前瞻性陳述。未來的事件或結果。

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 our customer responses to our innovations, as well as statements regarding the company's outlook for the second quarter of 2022. 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 the 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, 2021.

前瞻性陳述還包括有關管理層對將我們的產品擴展到新市場的信念和預期以及客戶對我們的創新的反應的陳述，以及有關公司 2022 年第二季度前景的陳述。根據法律要求，我們不承擔在本財報電話會議日期後以任何理由更新前瞻性陳述以使這些陳述符合實際結果或公司預期變化的義務。有關可能影響公司業務的風險的更多信息，請參閱公司提交給 SEC 的報告的風險因素部分，包括公司截至 2021 年 12 月 31 日止年度的 10-K 表格年度報告。

Also, all financials 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 the earnings press release that is available on our website. I'd like to note the date of our second quarter 2022 earnings call is currently scheduled for August 4, 2022.

此外，今天討論的所有財務數據均基於非公認會計原則，除非另有特別說明。非 GAAP 財務指標不應單獨考慮或替代根據 GAAP 編制的結果。我們的 GAAP 和非 GAAP 措施之間的對賬，以及我們為何提出非 GAAP 財務措施的討論都包含在我們網站上的收益新聞稿中。我想指出，我們 2022 年第二季度財報電話會議的日期目前定於 2022 年 8 月 4 日。

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

現在我想把電話轉給 Applied Optoelectronics 的創始人、董事長兼首席執行官 Thompson Lin 博士。湯普森？

Thank you, Cassidy, and thank you for joining our call today. Turning to the first quarter, we delivered revenue and gross margin in line with our expectations and non-GAAP EPS above our expectations. During the quarter, we continued to see strong demand in the CATV market and improving conditions in the silicon market.

謝謝你，卡西迪，也感謝你今天加入我們的電話會議。談到第一季度，我們的收入和毛利率符合我們的預期，非公認會計準則每股收益高於我們的預期。在本季度，我們繼續看到有線電視市場的強勁需求和矽市場的改善情況。

Total revenue for the first quarter increased 5.1% year-over-year to $52.2 million. Total revenue in our CATV segment of $25 million was up 34% year-over-year and was slightly higher compared to Q4. The overall CATV demand environment remains strong as we see increased activity and orders throughout the year and into early 2023. We are working to add additional capacity to meet this elevated demand.

第一季度總收入同比增長 5.1% 至 5220 萬美元。我們有線電視部門的總收入為 2500 萬美元，同比增長 34%，與第四季度相比略高。隨著我們看到全年和 2023 年初的活動和訂單增加，整體 CATV 需求環境仍然強勁。我們正在努力增加額外的容量以滿足這種高漲的需求。

Total revenue for our data center products of $21.4 million, decreased 17.4% year-over-year and 15% sequentially, as several of our customers continue to reduce their 40G and 100G purchase, while our run on next-generation 400G is still in the early stage. We can only see strong customer traction on 400G, and I'm very pleased to report that during the quarter, AOI was selected by a major hyperscale data center customer as a vendor for several of our 400G products.

我們數據中心產品的總收入為 2140 萬美元，同比下降 17.4%，環比下降 15%，因為我們的一些客戶繼續減少購買 40G 和 100G，而我們對下一代 400G 的運行仍處於早期。我們只能看到 400G 的強大客戶吸引力，我很高興地報告說，在本季度，AOI 被一家主要的超大規模數據中心客戶選為我們幾個 400G 產品的供應商。

We have a long relationship with this customer and have historically been a significant supplier of their early 40G and 100G transceiver needs. Pending the completion of final interoperability testing with the company's other prospective vendors, we expect orders to begin in Q3, with deliveries late in Q3 or in early in Q4.

我們與該客戶有著長期的合作關係，並且一直是他們早期 40G 和 100G 收發器需求的重要供應商。在完成與公司其他潛在供應商的最終互操作性測試之前，我們預計訂單將在第三季度開始，在第三季度末或第四季度初交付。

During the first quarter, we secured 1 new design win, which was a 400G transceiver product for hyperscale data center operators.

在第一季度，我們獲得了一項新設計勝利，這是一款面向超大規模數據中心運營商的 400G 收發器產品。

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

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

Thank you, Thompson. As Thompson mentioned, we delivered non-GAAP EPS above our expectations, and revenue and gross margin in line with our expectations. During the quarter, we saw continued growth in the CATV market and improving conditions in the telecom market. During the quarter, we secured 1 new design win, a 400G transceiver product for a hyperscale data center operator. As Thompson mentioned, we are pleased to report that AOI was selected by another major hyperscale data center customer as a vendor for several of our 400G products. We have a long relationship with this customer and have historically been a significant supplier of their earlier 40G and 100G transceiver needs. Pending the completion of finer interoperability testing with the company's other prospective vendors, we expect orders to begin in Q3 with deliveries late in Q3 or early in Q4.

謝謝你，湯普森。正如湯普森所說，我們的非公認會計準則每股收益超出了我們的預期，收入和毛利率符合我們的預期。本季度，我們看到有線電視市場持續增長，電信市場狀況不斷改善。在本季度，我們獲得了一項新設計勝利，這是一款適用於超大規模數據中心運營商的 400G 收發器產品。正如 Thompson 提到的，我們很高興地報告 AOI 被另一家主要的超大規模數據中心客戶選為我們幾個 400G 產品的供應商。我們與該客戶有著長期的合作關係，歷來是他們早期 40G 和 100G 收發器需求的重要供應商。在與公司其他潛在供應商完成更精細的互操作性測試之前，我們預計訂單將在第三季度開始，並在第三季度末或第四季度初交付。

Total first quarter revenue of $52.2 million increased 5.1% compared to the first quarter of 2021, and decreased 4% sequentially. Our Q1 revenue was in line with our guidance range of $51 million to $54 million. In the first quarter, 48% of our revenue was from our CATV products, 41% was from our data center products, with the remaining 11% from FTTH, telecom and other.

第一季度總收入為 5220 萬美元，與 2021 年第一季度相比增長 5.1%，環比下降 4%。我們第一季度的收入符合我們 5100 萬至 5400 萬美元的指導範圍。第一季度，我們48%的收入來自CATV產品，41%來自數據中心產品，其餘11%來自FTTH、電信等。

In our CATV products segment, the overall demand environment continues to grow as MSOs, particularly in North America, continue purchasing additional capacity to upgrade their networks. We generated CATV revenue of $25 million, up 34% year-over-year and up 0.2% sequentially. As a reminder, our CATV results are typically negatively impacted in Q1 by the loss of production days that occurs during the Lunar New Year holiday in China, where most of our CATV products are produced. The slight sequential growth reflects the increased capacity that we have added, which more than compensated for the loss in production days.

在我們的 CATV 產品領域，隨著 MSO（尤其是在北美）繼續購買額外容量以升級其網絡，整體需求環境繼續增長。我們創造了 2500 萬美元的有線電視收入，同比增長 34%，環比增長 0.2%。提醒一下，我們的 CATV 業績在第一季度通常受到中國農曆新年假期期間生產天數損失的負面影響，我們的大部分 CATV 產品都是在中國生產的。輕微的環比增長反映了我們增加的產能，這足以彌補生產天數的損失。

Looking ahead, we continue to have good visibility with CATV orders as we see our backlog stretching throughout 2022 and into 2023. We are working to add additional capacity in both our China factory and our Taiwan factory to meet this growing demand. We believe the conditions in our CATV market are likely to remain highly favorable into 2023. Our Q1 data center revenue came in at $21.4 million, down 17.4% year-over-year and down 15% sequentially. In the first quarter, 73% of our data center revenue was from our 100G products, 18% was from our 40G transceiver products, and 1.4% was from our 200G and 400G transceiver products.

展望未來，我們的 CATV 訂單繼續保持良好的可見度，因為我們看到我們的積壓訂單將在整個 2022 年到 2023 年延伸。我們正在努力增加我們中國工廠和台灣工廠的額外產能，以滿足這一不斷增長的需求。我們認為，到 2023 年，我們的 CATV 市場狀況可能仍然非常有利。我們的第一季度數據中心收入為 2140 萬美元，同比下降 17.4%，環比下降 15%。第一季度，我們數據中心收入的 73% 來自我們的 100G 產品，18% 來自我們的 40G 收發器產品，1.4% 來自我們的 200G 和 400G 收發器產品。

Now turning to our Telecom segment. Revenue from our telecom products of $5.3 million was up 17.5% year-over-year and up 60.1% sequentially. We were pleased to see telecom rebound this quarter as the China telecom market recovered. Looking ahead, we expect telecom revenue to remain lumpy quarter-to-quarter, however, especially given the challenging environment in China due to COVID-19. For the first quarter, our top 10 customers represented 88.6% of revenue, down from 90.5% in Q1 of the prior year. We had two 10% or greater customers in the first quarter, one in the CATV market and one in the data center market. These customers contributed 39% and 19.4% of total revenue, respectively.

現在轉向我們的電信部門。我們的電信產品收入為 530 萬美元，同比增長 17.5%，環比增長 60.1%。隨著中國電信市場的複蘇，我們很高興看到本季度的電信反彈。展望未來，我們預計電信收入將保持季度環比波動，尤其是考慮到 COVID-19 在中國的挑戰性環境。第一季度，我們的前 10 名客戶佔收入的 88.6%，低於去年第一季度的 90.5%。我們在第一季度有兩個 10% 或更多的客戶，一個在 CATV 市場，一個在數據中心市場。這些客戶分別貢獻了總收入的 39% 和 19.4%。

In Q1, we generated non-GAAP gross margin of 17.5%, which was at the high end of our guidance range of 15.5% to 17.5%. And was down slightly from 17.6% in Q4 of 2021 and 24.6% in Q1 of 2021. The decline in our gross margin was mostly due to continued challenges with the supply chain. Total non-GAAP operating expenses in the first quarter were $19.6 million or 37.5% of revenue, down from $20.6 million or 41.4% of revenue in Q1 of the prior year.

在第一季度，我們的非公認會計原則毛利率為 17.5%，處於我們指導範圍 15.5% 至 17.5% 的高端。與 2021 年第四季度的 17.6% 和 2021 年第一季度的 24.6% 相比略有下降。我們的毛利率下降主要是由於供應鏈的持續挑戰。第一季度非美國通用會計準則運營費用總額為 1960 萬美元，佔收入的 37.5%，低於去年第一季度的 2060 萬美元，佔收入的 41.4%。

Looking forward, we expect non-GAAP operating expenses to hover around $20 million per quarter for the rest of the year. Non-GAAP operating loss in the first quarter was $10.4 million, compared to an operating loss of $8.4 million in Q1 of the prior year. GAAP net loss for Q1 was $16.1 million or a loss of $0.58 per basic share compared with a GAAP net loss of $15.6 million or a loss of $0.59 per basic share in Q1 of 2021.

展望未來，我們預計非 GAAP 運營費用將在今年剩餘時間內每季度徘徊在 2000 萬美元左右。第一季度非美國通用會計準則營業虧損為 1040 萬美元，而去年第一季度的營業虧損為 840 萬美元。第一季度 GAAP 淨虧損為 1610 萬美元或每股基本股虧損 0.58 美元，而 2021 年第一季度 GAAP 淨虧損為 1560 萬美元或每股基本股虧損 0.59 美元。

On a non-GAAP basis, our net loss for Q1 was $7.9 million, or a loss of $0.29 per basic share, which was better than our guidance range of a loss of $8.3 million to $9.5 million or a loss per share in the range of $0.30 to $0.35 per basic share. And compares to a net loss of $5.5 million or a loss of $0.21 per basic share in Q1 of the prior year. The basic shares outstanding used for computing the net loss in Q1 were 27.5 million.

按非公認會計原則計算，我們第一季度的淨虧損為 790 萬美元，即每股基本虧損 0.29 美元，好於我們的指導範圍，即虧損 830 萬美元至 950 萬美元或每股虧損每股基本股 0.30 至 0.35 美元。相比之下，去年第一季度淨虧損 550 萬美元或每股基本股虧損 0.21 美元。用於計算第一季度淨虧損的基本流通股為 2750 萬股。

Turning now to the balance sheet. We ended the first quarter with $40.1 million in total cash, cash equivalents, short-term investments, and restricted cash. This compares with $41.1 million at the end of the fourth quarter. We ended the quarter with total debt of $67.2 million, up from $62.9 million last quarter. As of March 31, we had $92 million in inventory compared to $92.5 million at the end of Q4. Inventory decreased primarily due to utilization of inventory for customer orders. We made a total of $1 million in capital investments in the first quarter, including $0.7 million in production equipment and machinery and $0.2 million in construction and building improvements.

現在轉向資產負債表。我們在第一季度結束時的現金、現金等價物、短期投資和受限現金總額為 4010 萬美元。相比之下，第四季度末為 4110 萬美元。我們在本季度末的總債務為 6720 萬美元，高於上一季度的 6290 萬美元。截至 3 月 31 日，我們的庫存為 9200 萬美元，而第四季度末為 9250 萬美元。庫存減少主要是由於客戶訂單的庫存利用率。我們在第一季度總共進行了 100 萬美元的資本投資，其中包括 70 萬美元的生產設備和機械以及 20 萬美元的建築和建築改進。

Before turning to guidance, I would first like to discuss the supply chain environment. We saw supply constraints continue to lessen throughout Q1, and we did not see significant impact from shortages in the quarter. However, towards the end of the quarter, lockdowns in Shanghai began to affect several of our suppliers for our CATV products. We expect that these shutdowns will negatively impact our revenue in Q2 by approximately $3 million. We do expect to recover this delayed revenue once conditions in China normalize.

在轉向指導之前，我想先討論一下供應鏈環境。我們看到供應限制在整個第一季度繼續減少，並且我們沒有看到本季度短缺的重大影響。然而，在本季度末，上海的封鎖開始影響我們的幾家有線電視產品供應商。我們預計這些關閉將對我們第二季度的收入產生大約 300 萬美元的負面影響。一旦中國的情況恢復正常，我們確實希望收回這一延遲的收入。

Moving now to our Q2 outlook. We expect Q2 revenue to be between $56 million and $59 million. And non-GAAP gross margin to be in the range of 16.5% to 18%. Non-GAAP net loss is expected to be in the range of $8.4 million to $9.5 million and non-GAAP loss per basic share between $0.30 and $0.34 using a weighted average basic share count of approximately 27.6 million shares.

現在轉到我們的第二季度展望。我們預計第二季度的收入將在 5600 萬美元至 5900 萬美元之間。非美國通用會計準則毛利率在 16.5% 至 18% 之間。使用約 2760 萬股的加權平均基本股數，非 GAAP 淨虧損預計在 840 萬美元至 950 萬美元之間，非 GAAP 每股基本股虧損在 0.30 美元至 0.34 美元之間。

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

有了這個，我會把它交還給接線員進行問答環節。操作員？

(Operator Instructions) The first question comes from Richard Shannon with Craig-Hallum.

（操作員說明）第一個問題來自 Richard Shannon 和 Craig-Hallum。

Great. And Thompson and Stefan, thanks for getting me on the queue here. Let's see, a couple of questions. Maybe starting with the sales guidance for the second quarter. Stefan, you just mentioned the supply chain of about a $3 million impact, and it sounds like, at least I would guess, it's mostly from cable TV. Can you verify that that's where you're seeing most of the impact? And then just maybe talk generally speaking about the relative growth of each of your primary segments and sales for the quarter?

偉大的。還有 Thompson 和 Stefan，謝謝你們讓我在這裡排隊。讓我們看看，幾個問題。也許從第二季度的銷售指導開始。 Stefan，你剛剛提到了大約 300 萬美元的供應鏈影響，聽起來，至少我猜想，它主要來自有線電視。你能證實那是你看到最大影響的地方嗎？然後大概談談您每個主要細分市場的相對增長和本季度的銷售額？

Sure. Yes. So the supply chain issues that we called out that we expect to result in about a $3 million revenue hit compared to what we would otherwise have due to that supply chain constraint. That was in China, and it was related to our cable TV product, as you mentioned. Your second question had to do with the relative...

當然。是的。因此，我們提出的供應鏈問題預計會導致大約 300 萬美元的收入損失，而如果供應鏈受到限制，我們可能會遭受損失。正如你所說，那是在中國，它與我們的有線電視產品有關。您的第二個問題與親戚有關...

Growth within the major segments, cable TV, data center, et cetera, that leads to your...

主要細分市場、有線電視、數據中心等的增長，導致您的...

Yes. I mean, I'm not sure what exactly the question is. But clearly, cable TV is growing relatively robustly. Data center has been in a bit of a decline, as we mentioned in our prepared remarks, because many of our customers are reducing their spend on 40 gig and 100 gig. And the 400 gig for us has just started to ramp. We noted in our prepared remarks that we have a new hyperscale customer that just notified us that we're going to be one of their selected vendors for 400 gig. So that's good news, but the revenue for that won't start until later in Q3 or early Q4, as we noted. So in the meantime, we're seeing a little bit of decline in the data center business.

是的。我的意思是，我不確定問題到底是什麼。但很明顯，有線電視的增長相對強勁。正如我們在準備好的評論中提到的那樣，數據中心的數量有所下降，因為我們的許多客戶正在減少他們在 40 gig 和 100 gig 上的支出。我們的 400 場演出才剛剛開始。我們在準備好的評論中指出，我們有一個新的超大規模客戶剛剛通知我們，我們將成為他們選擇的 400 gig 供應商之一。所以這是個好消息，但正如我們所指出的，該收入要到第三季度末或第四季度初才會開始。因此，與此同時，我們看到數據中心業務略有下滑。

On the telecom business, we did note that the telecom business grew substantially sequentially. However, most of that growth is coming in China. So I want to be really cautious about trying to project that forward. We've said for the last few quarters that we expect the telecom business in China, especially to be kind of lumpy, up and down. And that's what we've seen, and that's basically what I would continue to expect. The situation in China with COVID definitely exacerbates the expectation that there's not going to be sustained growth until after they can at least get past that period.

在電信業務方面，我們確實注意到電信業務環比大幅增長。然而，大部分增長來自中國。所以我想非常謹慎地嘗試將其向前推進。在過去的幾個季度中，我們已經說過，我們預計中國的電信業務，尤其是會起伏不定。這就是我們所看到的，這基本上是我會繼續期待的。中國的 COVID 情況無疑加劇了人們的預期，即在至少能夠度過那個時期之後，才會出現持續增長。

That is helpful. Following up on one of your comments on 400 gig, you said -- I think you're not using the word design win, but the notified deal -- you expect it to be a supplier with a major hyperscaler. Maybe just a few key details on this. Is this the U.S. or international hyperscaler. Can you describe which versions of 400 gig there? And then what do you see as kind of the way you characterize the dollar opportunity over a period of time from this win?

這很有幫助。跟進你對 400 gig 的評論之一，你說——我認為你沒有使用設計勝利這個詞，而是通知交易——你希望它是一家擁有大型超大規模生產商的供應商。也許只是這方面的一些關鍵細節。這是美國還是國際超大規模？你能描述一下那裡有哪些版本的 400 gig 嗎？然後，您如何看待這次獲勝後一段時間內的美元機會？

Sure. So it's a U.S. customer. It's historically been one of, and in some cases, our largest data center customer. We haven't disclosed what exactly types of 400-gig products over there, for competitive reasons. And as far as the dollar opportunity goes, I mean, it should be a pretty sizable opportunity. We can't put an exact figure on it yet, because we don't know -- as I mentioned in my prepared remarks, we're still finalizing the interoperability testing. And so until that's done and we know kind of who the other players are and what our relative positioning is, it's difficult to project the potential dollar figure for AOI. But I would note -- I mean, and again, this is a customer that we were historically their largest supplier for certain of their applications, including 100 gig, and this is their next-generation product. So it's a sizable opportunity for us.

當然。所以是美國客戶。它在歷史上一直是我們最大的數據中心客戶之一，在某些情況下，它也是我們最大的數據中心客戶之一。出於競爭原因，我們還沒有透露那裡的 400 演出產品的具體類型。就美元機會而言，我的意思是，這應該是一個相當大的機會。我們還不能給出確切的數字，因為我們不知道——正如我在準備好的評論中提到的，我們仍在完成互操作性測試。因此，在完成這些並且我們知道其他參與者是誰以及我們的相對定位是什麼之前，很難預測 AOI 的潛在美元數字。但我要指出——我的意思是，再一次，這是一個客戶，我們在歷史上是他們某些應用程序的最大供應商，包括 100 gig，這是他們的下一代產品。所以這對我們來說是一個相當大的機會。

Okay. I appreciate that perspective. Just one last kind of big picture question for you, Stefan. Obviously, I think the big question for a lot of investors is thinking about your path to breakeven. Obviously, it's going to require some sales scale, some growth here from these levels. And then presumably with that, we should see some gross margins improve here. Maybe you can talk a little bit about how you kind of see your breakeven model now. What's the kind of the possibility of seeing that happen maybe next year or something like that? Just kind of give us a sense of how you see that happening?

好的。我很欣賞這種觀點。 Stefan，最後一個大問題是給你的。顯然，我認為對於很多投資者來說，最大的問題是考慮你的盈虧平衡之路。顯然，這將需要一些銷售規模，從這些水平上實現一些增長。然後大概有了這個，我們應該看到這裡的毛利率有所提高。也許你可以談談你現在如何看待你的盈虧平衡模型。明年或類似情況下發生這種情況的可能性有多大？只是讓我們了解您如何看待這種情況？

Well, as we said in our prepared remarks, I mean, I expect the operating expenses to be kind of stabilized at about $20 million a quarter, where they have been historically for a while. So doing the math, obviously, getting to breakeven then will require growth in sales, as you mentioned, and some growth in gross margin. We discussed last time on call that we think we can get back to the mid-20% gross margin range. It's difficult to project when. Given all the supply issues that we've had and lingering COVID concerns and all that, it's hard to put an exact time frame on that, but we certainly need to be back in the mid-20% range in terms of margin.

好吧，正如我們在準備好的評論中所說，我的意思是，我預計運營費用將穩定在每季度約 2000 萬美元，歷史上已經有一段時間了。因此，顯然，要達到收支平衡，就需要銷售增長，正如你所提到的，以及毛利率的一些增長。我們上次在電話會議上討論過，我們認為我們可以回到 20% 的毛利率中間範圍。很難預測何時。鑑於我們遇到的所有供應問題以及揮之不去的 COVID 擔憂以及所有這些，很難確定確切的時間框架，但我們當然需要在利潤率方面回到 20% 的中間範圍。

And then revenue, you can figure out from there, but it certainly needs to be $70 million or higher under any reasonable circumstance for gross margin. So that's kind of the puts and takes on.

然後是收入，你可以從那裡算出來，但在任何合理的情況下，毛利率肯定需要達到 7000 萬美元或更高。所以這是一種投入和承擔。

(Operator Instructions) The next question comes from Richard Shannon with Craig-Hallum.

（操作員說明）下一個問題來自 Richard Shannon 和 Craig-Hallum。

Stefan, maybe I'll throw in one more question here within your data center segments. I think you're calling out some weakness here in 40 gig, not sure if this is kind of flat to declining business over time here, probably most people would expect that to a degree. But maybe you could talk about your 100 gig business here. Kind of, if you look over the last number of quarters, it looks kind of flattish. Some market participants see this as a modestly growing market. I want to get your sense of what you're seeing for that revenue stream?

Stefan，也許我會在您的數據中心領域再提出一個問題。我認為您在 40 gig 中指出了一些弱點，不確定隨著時間的推移，這是否會導致業務下滑，可能大多數人都會在一定程度上期望這一點。但也許你可以在這裡談談你的 100 份演出業務。有點，如果你看一下最後幾個季度，它看起來有點平淡。一些市場參與者認為這是一個適度增長的市場。我想了解一下您對該收入來源的看法？

Yes. I mean it's been -- as you say, it's been relatively flat. I mean, we're not expecting large drops. However, as I noted, one of our customers, a very large customer, is in the process of planning their transition from 100 gig to 400 gig. And we've been selected, as I've mentioned in our prepared remarks, as a 400 gig supplier. So in the meantime, we expect their 100 gig business will decline somewhat in anticipation of that 400 gig. And that's pretty much what we expect to see.

是的。我的意思是它一直 - 正如你所說，它相對平坦。我的意思是，我們預計不會出現大幅下降。然而，正如我所指出的，我們的一位客戶，一個非常大的客戶，正在計劃從 100 gig 過渡到 400 gig。正如我在準備好的評論中提到的，我們被選為 400 gig 供應商。因此，與此同時，我們預計他們的 100 gig 業務將在預期 400 gig 的情況下有所下降。這幾乎就是我們期望看到的。

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

謝謝你。目前，我們沒有進一步的問題，我將把電話轉給 Thompson Lin 博士做結束語。

Thank you for joining us today. As always, we want to extend a thank to you, to our investors, customers and employees for your continued support, and we look forward to see many of you virtually at our upcoming investor conference. Thank you.

感謝您今天加入我們。與往常一樣，我們要感謝您、我們的投資者、客戶和員工的持續支持，我們期待在即將舉行的投資者會議上與你們中的許多人見面。謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。