AXT, Inc. (AXTI) 2026 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to AXT's second-quarter 2026 financial conference call. Leading the call today is Dr. Morris Young, Chief Executive Officer; and Gary Fischer, Chief Financial Officer. In addition, Tim Bettles, VP of Business Development, will be participating in the Q&A portion of the call.

各位下午好，歡迎參加 AXT 2026 年第二季財務電話會議。今天主持會議的是執行長 Morris Young 博士，以及財務長 Gary Fischer。此外，業務發展副總裁 Tim Bettles 也將參與問答環節。

My name is Kenneth, and I will be your coordinator today. I would now like to turn the call over to Leslie Green, Investor Relations for AXT.

我叫 Kenneth，今天將擔任會議協調人。現在我想把電話會議交給 AXT 投資人關係的 Leslie Green。

Thank you, Kenneth, and good afternoon, everyone. Before we begin, I would like to remind you that during the course of this conference call, including comments made in response to your questions, we will provide projections or make other forward-looking statements regarding, among other things, the future financial performance of the company, market conditions and trends, emerging applications using chips or devices fabricated on our substrates, our product mix, global economic and political conditions, including trade tariffs and import and export restrictions, ability to obtain China export permits, timing of receipt of export permits, a list our subsidiary Tongmei in Hong Kong, our ability to increase quarters in succeeding quarters to control costs and expenses, to improve manufacturing yields and efficiencies, or to utilize our manufacturing capacity.

謝謝你，Kenneth，各位下午好。在開始之前，我想提醒各位，在本次電話會議過程中（包括回覆各位提問時的評論），我們將提供預測，或發表其他前瞻性陳述，內容可能涉及但不限於：公司未來的財務表現、市場狀況與趨勢、使用在我們基板上製造之晶片或裝置的新興應用、我們的產品組合、全球經濟與政治情勢（包括貿易關稅及進出口限制）、取得中國出口許可的能力、取得出口許可的時間點、我們位於香港的子公司 Tongmei 被列名的情況、我們在後續季度提升季度表現以控制成本與費用的能力、改善製造良率與效率的能力，或運用我們製造產能的能力。

We wish to caution you that such statements deal with future events, are based on management's current expectations and are subject to risks and uncertainties that could cause actual events and results to differ materially. In addition to the matters just listed, these uncertainties and risks include but are not limited to the financial performance of our partially owned supply chain companies and increased environmental regulations in China.

我們提醒各位注意，這些陳述涉及未來事件，係基於管理層目前的預期，並受到各種風險與不確定性影響，可能導致實際事件與結果出現重大差異。除上述事項外，這些不確定性與風險還包括但不限於：我們部分持股之供應鏈公司之財務表現，以及中國日益嚴格的環境法規。

In addition to the factors just mentioned that may be discussed on this call, we refer you to the company's periodic reports filed with the Securities and Exchange Commission. These are available online by link from our website and contain additional information on risk factors that could cause actual results to differ materially from our current expectations.

除本次電話會議可能討論的上述因素外，我們也請各位參閱公司向美國證券交易委員會（SEC）提交的定期報告。這些報告可透過我們網站的連結在線取得，並包含更多風險因素資訊，這些因素可能導致實際結果與我們目前的預期出現重大差異。

This conference call will be available on our website at axt.com through July 30, 2027. Also, I want to note that shortly following the close of the market today, we issued a Reporting financial results for the second quarter of 2026. This information is available on the Investor Relations portion of our website. I would now like to turn the call over to Gary Fisher for a review of our second quarter 2026 results. Gary.

本次電話會議的錄音將於 2027 年 7 月 30 日前在我們的網站 axt.com 上提供。另外我也要說明，今天收盤後不久，我們已發布 2026 年第二季財務結果的報告。相關資訊可在我們網站的投資人關係專區取得。現在我想把電話會議交給 Gary Fisher，請他回顧我們 2026 年第二季的業績。Gary。

Thank you, Leslie, and good afternoon to everyone. Our Q2 financial results highlight an exciting inflection in our business trajectory and the beginnings of a multi-year growth phase for AXT. Revenue for the second quarter of 2026 is $47.6 million. This is the highest quarterly revenue in AXT’s history, up nearly 77% from $26.9 million in the first quarter and up 164% from $18.0 million in the second quarter of 2025.

謝謝你，Leslie，各位下午好。我們第二季的財務結果凸顯了公司業務軌跡令人振奮的轉折點，以及 AXT 多年成長階段的開端。2026 年第二季營收為 4,760 萬美元。這是 AXT 歷史上最高的單季營收，較第一季的 2,690 萬美元成長近 77%，也較 2025 年第二季的 1,800 萬美元成長 164%。

To break down our Q2 2026 revenue for you by product category, indium phosphide was $30.7 million, also the highest in our company’s history. Let me repeat that. Indium phosphide was $30.7 million, also the highest in our company’s history, primarily from data center applications. Gallium arsenide was $6.6 million. Germanium substrates were $272,000. Finally, revenue from our consolidated raw material joint venture companies in Q2 was $10.0 million.

按產品類別拆解 2026 年第二季營收：磷化銦為 3,070 萬美元，同樣創下公司歷史新高。我再重複一次。磷化銦為 3,070 萬美元，同樣創下公司歷史新高，主要來自資料中心應用。砷化鎵為 660 萬美元。鍺基板為 27.2 萬美元。最後，我們合併報表中的原材料合資公司在第二季的營收為 1,000 萬美元。

The top five customers generated approximately 30% of total revenue, and no customers are over the 10% level. Gross margin showed a substantial improvement again in the second quarter, primarily driven by an increase in total volume and a favorable product mix.

前五大客戶合計貢獻約 30% 的總營收，且沒有任何單一客戶占比超過 10%。第二季毛利率再次顯著改善，主要受總出貨量增加以及有利的產品組合所帶動。

Non-GAAP gross margin was 45.0%, compared with 29.9% gross margin in Q1 of 2026 and 8.2% gross margin in Q2 of 2025. For those who prefer to track results on a GAAP basis, gross margin in the second quarter was 44.9%, compared with 29.6% in Q1 and 8.0% in Q2 of 2025. This is a huge, huge positive change from Q1 of 2025.

非 GAAP 毛利率為 45.0%，相較於 2026 年第一季的 29.9% 以及 2025 年第二季的 8.2%。對於偏好以 GAAP 基礎追蹤結果的各位，第二季 GAAP 毛利率為 44.9%，相較於第一季的 29.6% 以及 2025 年第二季的 8.0%。相較於 2025 年第一季，這是一個非常、非常正面的巨大變化。

Moving to operating expenses. Our total non-GAAP operating expense in Q2 was $10.2 million, compared with $8.6 million in Q1 and $7.6 million in Q2 of 2025. On a GAAP basis, total operating expense in Q2 was $10.9 million, compared with $9.6 million in Q1 and $8.2 million in Q2 of last year. Our non-GAAP operating profit for the second quarter of 2026 is $11.2 million, compared with a non-GAAP operating loss in Q1 of $550,000 and a non-GAAP operating loss of $6.1 million in Q2 of 2025.

接著談營業費用。第二季非 GAAP 營業費用總額為 1,020 萬美元，相較於第一季的 860 萬美元以及 2025 年第二季的 760 萬美元。以 GAAP 基礎計算，第二季營業費用總額為 1,090 萬美元，相較於第一季的 960 萬美元以及去年第二季的 820 萬美元。2026 年第二季非 GAAP 營業利益為 1,120 萬美元，相較於 2026 年第一季非 GAAP 營業損失 55 萬美元，以及 2025 年第二季非 GAAP 營業損失 610 萬美元。

For reference, our GAAP operating line for the second quarter of 2026 was a (technical difficulty)

供各位參考，我們 2026 年第二季的 GAAP 營業項目為一個(技術問題)

Kenneth?

Kenneth？

Hello, Leslie. You disappeared for a second. You're back now.

你好，Leslie。你剛剛消失了一下。你現在回來了。

Okay, great. Terrific. Continue, Gary.

好的，很好。太好了。繼續吧，Gary。

Am I just on speaker on your cellphone now? Kenneth, can you hear me okay?

我現在是用你手機的擴音在講嗎？Kenneth，你聽得到我嗎？

Loud and clear. You can continue.

很清楚。你可以繼續。

Okay. For the benefit of the people listening, it’s afternoon where you are. We’re in China right now, and we’re at the conference room of the Tongmei headquarters, so we have a little bit of a hiccup on the phone equipment.

好的。為了讓收聽的各位了解，你那邊是下午。我們現在人在中國，在 Tongmei 總部的會議室，所以電話設備有一點小狀況。

All right. non-GAAP operating profit for the second quarter of 2026 was $11.2 million, compared with a non-GAAP operating loss in Q1 of 2026 of $550,000, and a non-GAAP operating loss of $6.1 million in Q2 of 2025. For reference, our GAAP operating line for the second quarter of 2026 was a profit of $10.4 million, compared with an operating loss of $1.6 million in Q1, and an operating loss of $6.7 million in Q2 of 2025.

好。2026 年第二季非 GAAP 營業利益為 1,120 萬美元，相較於 2026 年第一季非 GAAP 營業損失 55 萬美元，以及 2025 年第二季非 GAAP 營業損失 610 萬美元。供各位參考，我們 2026 年第二季 GAAP 營業利益為 1,040 萬美元，相較於第一季營業損失 160 萬美元，以及 2025 年第二季營業損失 670 萬美元。

Non-operating other income and expense and other items below the operating line for the second quarter of 2026 was a net profit of $705,000. The details can be seen in the P&L included in our press release today.

2026 年第二季，營運線以下的非營業其他收入與費用及其他項目淨利為 70.5 萬美元。詳細內容可參閱我們今日新聞稿所附的損益表（P&L）。

In Q2 2026, we returned the company to profitability. We are pleased to report a non-GAAP net profit of $11.9 million or $0.19 per diluted share. This compares with the non-GAAP net loss of $585,000 or $0.01 per share loss in the first quarter, and a non-GAAP net loss in Q2 of 2025 of $6.4 million or $0.15 per share loss. On a GAAP basis, net profit in Q2 is $11.1 million or $0.17 per diluted share. By comparison, net loss was $1.6 million or $0.03 per share in the first quarter, and a GAAP net loss in Q2 of last year of $7.0 million. The weighted average diluted shares outstanding in Q2 is 63.5 million.

在 2026 年第二季，我們讓公司重回獲利。我們很高興報告非 GAAP 淨利為 1,190 萬美元，或稀釋後每股 0.19 美元。相較之下，第一季非 GAAP 淨損為 58.5 萬美元，或每股虧損 0.01 美元；而 2025 年第二季非 GAAP 淨損為 640 萬美元，或每股虧損 0.15 美元。以 GAAP 基礎計算，第二季淨利為 1,110 萬美元，或稀釋後每股 0.17 美元。相較之下，第一季淨損為 160 萬美元，或每股虧損 0.03 美元；去年第二季 GAAP 淨損為 700 萬美元。第二季加權平均稀釋流通股數為 6,350 萬股。

Cash, cash equivalents, and investments increased by $625.6 million to $748.8 million as of June 30. This was primarily the result of our secondary public offering of common stock, which closed on April 22 and generated approximately $632 million before expenses. By comparison, at March 31, our cash was $123 million. Accounts receivable increased by $4.7 million.

截至 6 月 30 日，現金、約當現金及投資增加 6.256 億美元至 7.488 億美元。這主要是因為我們的普通股二次公開發行於 4 月 22 日完成交割，扣除費用前募集約 6.32 億美元。相較之下，截至 3 月 31 日，我們的現金為 1.23 億美元。應收帳款增加 470 萬美元。

During Q2, we signed long-term supply agreements with Casela and Coherent. Under the terms of these agreements, we received prepayments for wafers of $22.3 million and $25.4 million respectively. These type of agreements with significant upfront cash are an additional signpost regarding the important use of indium phosphide for high-speed optical data transmission required in AI data centers. Morris is going to talk more about this in a moment. These prepayments are posted on our financial statements as a liability, and they will be converted to revenue, and the liability reduces, as we ship product against these agreements.

第二季期間，我們與 Casela 與 Coherent 簽署了長期供應協議。依據協議條款，我們分別收到 2,230 萬美元與 2,540 萬美元的晶圓預付款。此類具有可觀前期現金的協議，進一步顯示磷化銦在 AI 資料中心所需的高速光學資料傳輸中的重要用途。Morris 稍後會就此再多談一些。這些預付款在我們的財務報表中列為負債；隨著我們依協議出貨，該負債將轉為營收，且負債金額會相應減少。

Depreciation and amortization in the second quarter was $2.5 million. Total stock comp was $0.8 million. Net inventory was up approximately $6.2 million in the second quarter to $96.3 million. This concludes our report on financial numbers.

第二季折舊與攤銷為 250 萬美元。股票酬勞總額為 80 萬美元。第二季淨存貨約增加 620 萬美元至 9,630 萬美元。以上為財務數字報告。

Turning to our plan to list our subsidiary, Tongmei, in China. On June 26, Tongmei notified the stock exchange that it was moving its applications for an initial public offering on the STAR Market. This was accepted in July. AXT and Tongmei will now instead transfer our efforts towards listing on the Hong Kong Exchange, which will likely take about a year to complete.

接著談我們在中國為子公司 Tongmei 上市的計畫。6 月 26 日，Tongmei 通知交易所，其正在推進於科創板（STAR Market）首次公開發行（IPO）的申請。該申請已於 7 月獲受理。AXT 與 Tongmei 現將改為把重心轉向香港交易所上市，預計完成約需一年。

We continue to believe that an IPO in China is a highly beneficial in expanding our capacity in China and the most efficient and effective way to support the rapidly evolving AI infrastructure build-out. This concludes our China development of its semiconductor supply chain to meet increased China-based demand for indium phosphide substrates.

我們仍然相信，在中國進行 IPO 對於擴充我們在中國的產能極具效益，且是支持快速演進的 AI 基礎設施建置最有效率、最有效的方式。以上為我們就中國半導體供應鏈發展、以滿足中國境內對磷化銦基板需求增加的說明。

Tongmei’s move to the Stock Exchange of Hong Kong creates a redemption right for the $49 million invested by the PE funds back in 2021. However, we’ve been in discussion with them, and currently, they all wish to continue their investment and not be redeemed. We have sufficient cash to redeem investments should they be requested.

Tongmei 轉往香港交易所上市，將使 2021 年私募股權（PE）基金投資的 4,900 萬美元產生贖回權。不過，我們已與他們討論，目前他們都希望繼續投資而不行使贖回。若對方提出贖回要求，我們也有充足現金可進行贖回。

With that, I’ll turn the call over to Dr. Morris Young for a review of our business and markets. Morris?

接下來，我把電話會議交給 Morris Young 博士，請他回顧我們的業務與市場。Morris？

Thank you, Gary. This is an incredibly exciting time for AXT. As Gary mentioned, we have reached an inflection point in our business where the customer demand is extremely strong for our indium phosphide material. We are committed to doubling our indium phosphide capacity in 2026, and I’m pleased to report that we are ahead of the schedule in that effort. But more importantly, I can now report to you that our revenue opportunity for indium phosphide is on track to more than triple by the end of 2026, with continued significant expansion expected in 2027.

謝謝你，Gary。這對 AXT 來說是非常令人振奮的時刻。如 Gary 所提，我們的業務已到達一個拐點，客戶對我們的磷化銦材料需求極為強勁。我們承諾在 2026 年將磷化銦產能倍增，我很高興報告，我們在這項工作上進度超前。更重要的是，我現在可以向各位報告，我們的磷化銦營收機會正按計畫在 2026 年底前成長至超過三倍，且預期 2027 年仍將持續大幅擴張。

This is happening as a result of three factors. First, we are being able to expand capacity at a faster rate than we expected. Second, we are making significant strides in driving our manufacturing productivity with new crystal growth furnace designs and increase our output. And third, our customers are moving to larger diameter substrates and higher value products, resulting in favorable pricing trends.

這是由三個因素所促成。第一，我們能以比預期更快的速度擴充產能。第二，我們透過新的晶體生長爐設計，在提升製造生產力並提高產出方面取得重大進展。第三，我們的客戶正轉向更大直徑的基板與更高價值的產品，帶來有利的定價趨勢。

The combination of these factors is driving a step function increase in our revenue in Q2. We recorded our highest quarterly revenue and highest indium phosphide revenue in our history, with backlog that continues to grow and now is well over $100 million.

這些因素的組合，正推動我們第二季營收出現階躍式成長。我們創下公司史上最高的單季營收與最高的磷化銦營收；在手訂單（backlog）持續成長，目前已遠超過 1 億美元。

Customer demand continues to outpace supply, no matter how fast we add capacity. Broadly, the deployment of optical connectivity in AI data center is accelerating as hyperscalers scale GPU dense architectures and look for higher speed, lower power photonics to move data more efficiently.

無論我們多快增加產能，客戶需求仍持續超過供給。整體而言，隨著超大規模業者（hyperscalers）擴大 GPU 高密度架構並尋求更高速、低功耗的光子技術以更有效率地傳輸資料，AI 資料中心的光學互連部署正在加速。

In the near term, we’re seeing high demand from the industry migration to 800G and 1.6T transceivers modules, for which indium phosphide-based lasers and detectors are essential for higher performance optical links. Longer term, hyperscalers are advancing towards near-packaged and co-packaged optics, which will continue to drive increasing demand for our material. Overall, these trends point to a durable long-term build-out of denser optical infrastructure and a multi-year demand cycle for our indium phosphide.

短期來看，我們看到產業正遷移至 800G 與 1.6T 收發器模組，需求強勁；在這些應用中，基於磷化銦的雷射與偵測器對於更高效能的光鏈路至關重要。長期而言，超大規模業者正朝向近封裝（near-packaged）與共封裝（co-packaged）光學推進，將持續帶動對我們材料的需求增加。整體而言，這些趨勢顯示更高密度光學基礎設施的長期且持續建置，以及我們磷化銦的多年期需求循環。

As many of you are aware, the competitive landscape for high-quality indium phosphide is limited to just a few players due to primarily the very high technical barrier to entry. Among our peers, we believe AXT is the strongest position to increase manufacturing capacity quickly and at the scale and quality needed to move the needle in our industry and meet our customers’ requirements.

如各位所知，高品質磷化銦的競爭格局僅有少數玩家，主要原因在於進入門檻的技術難度極高。在同業之中，我們相信 AXT 具備最強的條件，能快速擴增製造產能，並以所需的規模與品質產生實質影響，滿足客戶的要求。

Our team in China has done an outstanding job in bringing up new lines in our existing facilities, as well as innovating to drive higher productivity. In working closely with our direct customers, as well as our major end customers, to understand their expected demand and roadmaps, we are well into the planning process to double our capacity again in 2027 in an adjacent location. This will make AXT by far the largest indium phosphide producer in the world.

我們在中國的團隊在既有廠房導入新產線，以及透過創新提升生產力方面，表現非常出色。透過與直接客戶及主要終端客戶密切合作，了解其預期需求與產品路線圖，我們已深入展開規劃流程，計畫於 2027 年在鄰近地點再將產能倍增。這將使 AXT 成為全球規模最大的磷化銦生產商。

In addition to growing our manufacturing footprint, we have also made great strides in development of our 6-inch indium phosphide capability. 6-inch indium phosphide substrate are exponentially more difficult to produce in volume than three or four-inch wafers. I’m very pleased and proud of our team’s progress towards this new offering.

除了擴大我們的製造版圖之外，我們在開發 6 吋磷化銦能力方面也取得了重大進展。6 吋磷化銦基板要達到量產，其難度相較於 3 吋或 4 吋晶圓呈指數級提升。我對團隊在推進這項新產品上的進展感到非常欣慰，也深感自豪。

I also want to thank our customers who have partnered with us throughout this process. We’re excited to support them as we move forward with our own capability.

我也要感謝在整個過程中與我們合作的客戶。隨著我們推進自有能力建置，我們很期待能持續支持他們。

Partnership is a cornerstone of our business philosophy, through which we have been able to deliver game-changing innovation. This dates back to the formation of joint ventures that today make up a unique and vertically integrated supply chain. And in the last 10 years, our work with two globally recognized indium phosphide customers helped us to raise the bar even further our manufacturing and business processes to be able to support the rigorous standards of some of the most prestigious companies in the world.

夥伴關係是我們商業理念的基石，透過夥伴合作，我們得以交付具顛覆性的創新。這可追溯至合資企業的成立，而這些合資企業如今構成了一條獨特且垂直整合的供應鏈。此外，在過去 10 年中，我們與兩家全球知名的磷化銦客戶合作，協助我們進一步提高製造與營運流程的標準，以支援世界上一些最具聲望公司的嚴格要求。

Strong partnership lifts innovation and enables both partners to achieve more. That is why one of the most rewarding aspect of our unfolding chapter in our history is the extent to which we have been able to partner with leading customers around the world who are defining the next generation of data center connectivity.

強健的夥伴關係能推動創新，並讓雙方都能達成更多成果。這也是為什麼，在我們公司歷史展開的新篇章中，最令人振奮的面向之一，是我們能與全球領先客戶建立合作關係，而這些客戶正在定義下一代資料中心連線。

We recently signed strategic long-term supply agreement with Casela and Coherent. And this week, we’re very pleased to announce an agreement with Lumentum. These agreements deepens our relationship with these important customers, working shoulder to shoulder with them to help them deliver on their own vision and roadmaps. In addition, they gave us the even greater sense of conviction that our capacity build-out is merited and necessary.

我們近期與 Casela 與 Coherent 簽署了策略性長期供應協議。而在本週，我們也非常高興宣布與 Lumentum 達成協議。這些協議加深了我們與這些重要客戶的關係，與他們並肩合作，協助其實現自身願景與產品路線圖。此外，這也讓我們更堅信，我們的產能擴建是合理且必要的。

From a geographic perspective, the massive AI infrastructure build-out and the planned capacity -- CapEx surround spending by cloud services and AI platform providers in the US is the primary driver for EML and silicon photonics-based optical transceivers, as well as high-speed photodetectors. We believe that today our material are being used in multiple US hyperscalers. We expect that end customer use will continue to broaden.

從地理角度來看，美國雲端服務與 AI 平台供應商的大規模 AI 基礎設施建置，以及圍繞規劃產能的資本支出（CapEx）投入，是 EML 與矽光子（silicon photonics）光學收發器，以及高速光偵測器的主要驅動力。我們相信，目前我們的材料已被多家美國超大規模客戶（hyperscalers）採用。我們預期終端客戶的使用範圍將持續擴大。

We’re also seeing huge growth in China as China moves to accelerate its capability throughout the AI supply chain. Our revenue related to indium phosphide-based lasers market in China more than doubled in Q2 from the prior quarter, and we expect continued strong growth in Q3. This highlights China’s increasing investment in AI infrastructure supply chain for the global market. This is a great opportunity for AXT as there’s no permit required to ship our product within China.

隨著中國加速提升其在 AI 供應鏈各環節的能力，我們也看到中國市場出現巨大成長。我們在中國與磷化銦雷射市場相關的營收於第二季較前一季增加逾一倍，且我們預期第三季仍將維持強勁成長。這凸顯中國正加大對面向全球市場之 AI 基礎設施供應鏈的投資。這對 AXT 而言是很好的機會，因為在中國境內出貨我們的產品不需要許可證。

Turning to gallium arsenide. In Q2, demand for semiconducting wafers for industrial, robotics, and data center laser applications grew sequentially from the prior quarter. We also continue to see demand for semi-insulating wafers for wireless RF devices and believe that we have a strong opportunity for market share expansion.

接著談砷化鎵。第二季，用於工業、機器人與資料中心雷射應用的半導體晶圓需求較前一季呈現季增。我們也持續看到無線射頻（RF）元件對半絕緣晶圓的需求，並相信我們在市占率擴張方面有很強的機會。

Finally, our raw material business continues to be highly strategic to our growth plan, also generated record third-quarter revenue in Q2. As we reported last quarter, our subsidiary, JinMei, is now refining high-purity indium, which gives us direct control of a guaranteed supply of yet another critical material for indium phosphide substrates. We’re also investing to help JinMei to expand their capability so that when AXT’s demand for poly material grows, JinMei will continue to provide a meaningful portion of our raw material requirements.

最後，我們的原材料業務仍是我們成長計畫中高度策略性的部分，並且在第二季創下第三季營收新高。如同我們上季所報告的，我們的子公司金美（JinMei）目前正在精煉高純度銦，這讓我們能直接掌控另一項對磷化銦基板至關重要材料的保證供應。我們也正在投資協助金美擴充其能力，以便當 AXT 對多晶材料（poly material）的需求成長時，金美仍能持續提供我們原材料需求中相當有意義的一部分。

Globally, there continues to be a great awareness of the importance of our raw material supply chain, and we are decades ahead of the curve in developing our unique integrated supply chain. We will continue to invest in our portfolio as we believe it is a major competitive differentiator.

在全球範圍內，市場對我們原材料供應鏈重要性的認知持續提升，而我們在打造這條獨特的整合式供應鏈方面已領先同業數十年。我們將持續投資於我們的組合，因為我們相信這是重要的競爭差異化因素。

Now in summary, we believe AXT is entering one of the most consequential chapters in our company history. The investment we’re making today in capacity, in technology, and in our unique integrated supply chain, position us to meet the extraordinary demand we see building across the optical and AI infrastructure markets.

總結來說，我們相信 AXT 正進入公司歷史上最具關鍵性的篇章之一。我們今天在產能、技術以及獨特的整合式供應鏈上的投資，使我們能夠滿足我們所看到在光學與 AI 基礎設施市場中持續累積的龐大需求。

Our customer engagement is deepening, our visibility is improving, and our competitive differentiation is strong. While we remain disciplined and thoughtful in our execution, we’re confident that the groundwork we are laying now will enable transformational growth in the years to come.

我們與客戶的互動正在加深，我們的能見度正在改善，而我們的競爭差異化也很強。在我們持續以紀律且審慎的方式執行之際，我們有信心，現在所奠定的基礎將在未來幾年帶來轉型性的成長。

With that, I turn the call back to Gary for our third-quarter guidance. Gary?

接下來，我把電話交回給 Gary，請他提供第三季財測指引。Gary？

Thank you, Morris. As of today, we have approximately $66 million in revenue that can be realized in Q3 across our substrate product lines and raw materials, for which we either already have a permit to ship or for which an export permit is not required. So $66 million. We have a high degree of confidence in recognizing this revenue.

謝謝你，Morris。截至今天，我們約有 6,600 萬美元的營收可在第三季於我們的基板產品線與原材料中實現；這些訂單我們要麼已取得出貨許可，要麼不需要出口許可。因此是 6,600 萬美元。我們對認列這筆營收具有高度信心。

We could see upside, even significant upside to this number in Q3 should we receive permits for additional orders for which we have the inventory to support. But we do not want to stress -- but we do want to stress that we cannot predict the future timing of permits or success in obtaining them for any specific customer or individual order. We have delivered strong gross margin improvement over the past several quarters. Further improvement depends on a number of factors, including total revenue as it relates to the revenue mix by product, absorption of fixed costs, and our ability to continue to drive better manufacturing efficiency.

若我們能取得額外訂單的許可，且我們有庫存可支援，我們在第三季可能會看到上行空間，甚至顯著的上行空間。但我們不想——但我們確實要強調，我們無法預測許可的未來核發時點，或針對任何特定客戶或單一訂單取得許可的成功機率。過去幾個季度，我們的毛利率已顯著改善。進一步改善取決於多項因素，包括總營收及其與產品別營收組合的關係、固定成本的吸收，以及我們持續推動更佳製造效率的能力。

With regards to OpEx, we expect that it will be approximately $10.5 million in Q3 on a non-GAAP basis, and approximately $11 million on a GAAP basis. With these factors in mind, we believe our non-GAAP net income will be in the range of $0.30 to $0.32, and GAAP net income in the range of $0.29 to $0.31. We estimate share count for Q3 will be approximately 66.5 million shares.

關於營業費用（OpEx），我們預期第三季在非 GAAP 基礎下約為 1,050 萬美元，在 GAAP 基礎下約為 1,100 萬美元。綜合上述因素，我們認為第三季非 GAAP 淨利將落在 0.30 至 0.32 美元之間，GAAP 淨利將落在 0.29 至 0.31 美元之間。我們估計第三季的股數約為 6,650 萬股。

Okay, this concludes our prepared comments. We’re glad to answer your questions now. Kenneth?

好的，我們的準備發言到此結束。我們很樂意現在回答各位的問題。Kenneth？

(Operator Instructions) Tim Savageaux, Northland Capital Markets.

（接線員指示）Tim Savageaux，Northland Capital Markets。

Congrats on the results and the guide. My first question is about the comments on the call about, I guess, an increased target for indium phosphide capacity for this year. Looks like -- I assume most of the growth you’re guiding to in Q3 comes from indium phosphide. I think we were looking at doubling from a $20 million-type level as the original target, maybe $35 million to $40 million.

恭喜本季結果與財測指引。我的第一個問題是關於電話會議中提到的評論，我想是關於今年磷化銦產能目標上調。看起來——我假設你們在第三季指引中的大部分成長來自磷化銦。我記得原先目標大概是從 2,000 萬美元左右的水準翻倍，可能到 3,500 萬到 4,000 萬美元。

Am I right to thinking the new sort of target exiting the year is something in the neighborhood of $60 million in quarterly indium phosphide capacity? And I’ll follow up from there.

我這樣理解對嗎：今年年底退出時的新目標，大概是每季約 6,000 萬美元的磷化銦產能？我接著再追問。

Yeah, that’s about right, Tim. That’s exactly what we’re looking at here. About $60 million thereabouts.

對，Tim，大致沒錯。這正是我們目前在看的數字。大約就是 6,000 萬美元左右。

Great. Good answer. You’re looking to double that still, I guess, exiting calendar 2027. So just confirmation on that.

很好。回答得很清楚。我想你們在 2027 年曆年年底退出時，仍然是要把它再翻倍吧。所以只是想確認一下。

Around the Lumentum deal, I wonder if you could -- obviously, you’ve got larger prepays, a longer term. I wonder if you could speak to maybe the overall size of that opportunity, from a baseline standpoint or upside or however you want to talk about it. Congrats again.

關於 Lumentum 這筆交易，我想請教你們——顯然你們拿到更大的預付款、期限也更長。我想請你談談這個機會的整體規模，無論是以基準情境、上行情境，或你想用的方式來說都可以。再次恭喜。

Thank you, Tim. So yeah, next year, we’re looking at doubling -- slightly more than doubling again, take our revenue to somewhere in the region of about $130 million a quarter exiting the year.

謝謝你，Tim。所以是的，明年我們預期再翻倍——甚至略高於翻倍，讓我們在年底退出時的營收提升到每季大約 1.3 億美元的區間。

Yeah, thank you about the Lumentum deal. Clearly, we’ve got some prepayments on that but we’re not discussing the total revenue impact of that deal at this moment.

也謝謝你提到 Lumentum 這筆交易。很明顯，我們在那筆交易上確實有一些預付款，但目前我們不討論該交易對總營收的影響。

So maybe let me add one point about the capacity expansion. We are planning at least to double next year, but as you know, this target changes. When -- in fact, I think this year we’re going to more than double, it’s because customer demand is just mounting. So we are finding whatever ways to increase that capacity expansion.

那我補充一點關於產能擴張。我們至少規劃明年要翻倍，但如你所知，這個目標會變動。事實上，我想今年我們會超過翻倍，因為客戶需求正在快速累積。所以我們正在想盡辦法提高產能擴張的幅度。

Although we are planning for double next year, but depends about how the business develops in the second quarter, we could find another way to even better than that. Okay, that's my -- in a way, it’s a moving target, we think it’s going to be more than double in 2027.

雖然我們規劃明年翻倍，但也要看第二季業務發展的情況，我們可能會找到其他方式，做到甚至比翻倍更好。好，這就是我——某種程度上，這是一個移動目標；我們認為 2027 年會超過翻倍。

The demand is moving faster than we can move. We’re doing great to move fast but the demand is even stronger.

需求成長的速度比我們能推進的速度還快。我們已經做得很快了，但需求更強。

Okay, not much faster. You guys are moving pretty fast.

好啦，也沒有快那麼多。你們動作其實已經很快了。

Matt Bryson, Wedbush Securities.

Wedbush Securities 的 Matt Bryson。

Thanks for taking my question, and congrats on the results and guide. Obviously, you’re having a whole lot more success in getting permits. It seems like with the Coherent deal, you have to have certainty that you’re going to get permits to ship out of China given the terms of that deal. I guess, can you talk about how the process has changed, and about how you have more confidence in getting these permits, or what has changed?

謝謝讓我提問，也恭喜你們的業績與財測指引。顯然你們在取得許可方面成功很多。看起來在 Coherent 這筆交易下，依照交易條款，你們必須確定能拿到許可，才能從中國出貨。我想問的是，你能談談流程有哪些改變嗎？以及你們為何更有信心能取得這些許可，或是到底改變了什麼？

Yeah, sure. Thanks, Matt. Permits always remain a bit of an issue on the back of our minds. As Gary mentioned there, it’s not something that we can absolutely predict, both the timing and the certainty of. But we are seeing more regularity in the process, especially in certain geographic regions. So that’s great news.

好的，當然。謝謝你，Matt。許可一直都是我們心裡的一個顧慮。如 Gary 剛才提到的，這不是我們能百分之百預測的事情，無論是時程或確定性。但我們確實看到流程更有規律，特別是在某些地理區域。所以這是個好消息。

We’re seeing increased demand in those geographic regions, too. So we’re focusing now even with greater intensity on capacity and allocation. But yeah, right now, the permits, as I say, we’re seeing more regularity in certain geographic regions, and we’re driving more and more permit applications through the Ministry of Commerce.

我們也看到那些地理區域的需求在增加。因此我們現在更聚焦在產能與配給（allocation）上。不過是的，就像我說的，目前在某些地理區域，許可流程更有規律，我們也正透過商務部推進越來越多的許可申請。

Awesome. That’s really helpful. Same question, Gary. My math has gross margins staying relatively stable in Q3. Is that roughly the right way to think about things? And I guess, as part of that, given how tight indium phosphide seems, is there any more room for price appreciation in our models?

太好了。這真的很有幫助。同樣的問題問 Gary。我算下來，第三季毛利率應該會維持相對穩定。這樣想大致正確嗎？另外，考量磷化銦看起來相當吃緊，我們的模型裡還有沒有更多價格上漲的空間？

Well, it is a moving target. Of course, I know you guys are going to quote me that I would always say, okay, you can go to 35%, but that’s not management’s target. Management’s target is a number that begins with four.

嗯，這是一個移動目標。當然，我知道你們會引用我常說的話：好吧，你可以到 35%，但那不是管理層的目標。管理層的目標是以「4」開頭的數字。

I’m delighted that we got here as fast as we did. I think I would recommend stick close to what we’re at right now. But I have to say again, management target is better than that. And let’s see what we can do. There's no -- when you add more volume, that helps on your gross margin because the fixed costs get absorbed over more units.

我很高興我們能這麼快達到目前的水準。我會建議你們先貼近我們現在的水準來看。但我還是要再說一次，管理層的目標比這更好。我們就看看能做到什麼程度。另外，當你增加出貨量時，毛利率會受益，因為固定成本會被更多的單位吸收。

And also, when you add more volume in manufacturing business, you get better at it. So we’re just experiencing a lot of positive influences right now to push this over 40% and stay at 45% for now but put your seat belts on.

而且，製造業務的量做大之後，你也會做得更好。所以我們現在正經歷許多正向因素，推動毛利率突破 40%，並且目前維持在 45%，不過請繫好安全帶。

Well, I can’t help myself but make a comment here. I’m a CEO, but I know my number, okay? Look, everybody knows our indium phosphide business has better margin than the other two business, the gallium arsenide and JVs. Okay? As we grow for next quarter, it’s obviously all the growth happening in indium phosphide. So just by simple math, the gross margin is going to be better.

我忍不住要在這裡補一句。我是 CEO，但我知道我的數字，好嗎？你看，大家都知道我們的磷化銦業務毛利率比另外兩塊業務——砷化鎵以及合資企業（JVs）——更好。對吧？而且我們下季的成長，顯然全部都發生在磷化銦。所以用簡單的數學來看，毛利率會更好。

Right. Because the sales of indium phosphide is increasing, the other stuff is not increasing as fast.

對。因為磷化銦的銷售在增加，其他部分的增速沒有那麼快。

So we’re optimistic.

所以我們很樂觀。

Yeah. We try and be conservative on this kind of a discussion.

是的。在這類討論上，我們會盡量保守一些。

Yeah. I want to add another point as well. The market is moving to larger diameters here, too. So we’re seeing a migration from 2 inch to 3 inch, 3 inch to 4 inch, and of course, now there’s a big push towards 6-inch for the future. This gives us a great opportunity to increase our gross margins.

是的。我也想再補充一點。市場也正在往更大直徑的規格移動。所以我們看到從 2 吋轉到 3 吋、3 吋轉到 4 吋，當然，現在也有很大的推力朝向未來的 6 吋。這給了我們一個很好的機會來提高毛利率。

Yeah. let's not spend on the bullet, but let me give you another one. Because the demand is so strong, the whole indium phosphide line is fully utilized. Let me give you an example.

是的。我們先別在那個要點上多花時間，但我再給你另一個例子。因為需求非常強勁，整條磷化銦產線都已滿載運轉。我舉個例子。

In the past, some of the, let’s say, smaller diameter, two-inch, they are not in favor, so they are not sold out. And the big demand is on 3-inch. Now, because the demand is so strong, the customer are forced or they want everything. Whatever we can produce, we can sell. That also will help us in terms of margins.

過去，有些（比方說）較小直徑的兩吋產品不太受青睞，所以賣不完。而需求主要集中在三吋。現在，因為需求非常強勁，客戶被迫——或者說他們想要所有規格。不管我們能生產什麼，我們都賣得掉。這也會在毛利率方面幫助我們。

Richard Shannon, Craig-Hallum.

Richard Shannon，Craig-Hallum。

I’ll add congratulations on an excellent quarter. Keep up the great work here. I guess my first question is, the language you used for the backlog, maybe it was slightly different, but you used the same number of $100 billion. I think you’re just saying a lot more than $100 billion.

我先補一句，恭喜你們交出非常出色的一季。請繼續保持這樣的好表現。我想我的第一個問題是，你們用來描述積壓訂單（backlog）的措辭，可能稍微不一樣，但你們用了同一個數字：1億美元。我覺得你們的意思其實是遠遠超過1億美元。

Wonder if you could clarify that number any more. And then specifically comment how much of your calendar 2027 is covered by backlog?

想請你們能否再更清楚地說明這個數字。另外，能否具體評論一下，你們2027曆年有多少已被積壓訂單覆蓋？

I’m going to let Tim answer that. So go ahead, Tim.

我讓Tim來回答。Tim，你來吧。

Yeah. I don’t want to go into a lot of details about how big exactly our backlog is. But I can tell you that it is growing, and I can tell you it continues to grow even as we ship more material. So demand just completely outpaces our ability to increase capacity, even though we’ve increased capacity, or we’re about to increase capacity 3x this year. Just simply can’t keep up with it. So backlog continues to grow, as I say, beyond $100 million right now.

好的。我不想深入談太多我們積壓訂單到底有多大。但我可以告訴你，它正在成長，而且即使我們出貨更多材料，它仍持續成長。所以需求完全超過我們提升產能的能力，儘管我們已經提升產能，或是今年將把產能提高到3倍。就是跟不上。所以如我所說，積壓訂單目前仍持續成長，已超過1億美元。

In terms of 2027, yeah, we’re covered with backlog going out into 2027. Obviously, a lot of our customers, if we could deliver the majority of that today, they would take it today. But that does cover going out into 2027. and of course, we have these long-Term supply agreements that take us out into 2027 and beyond as well. So we’ve got a lot of next year and beyond covered with LTSAs, and even in some cases, backlog.

就2027年而言，是的，我們的積壓訂單已覆蓋到2027年。顯然，我們很多客戶如果我們今天就能交付其中大部分，他們今天就會收貨。但這些確實已覆蓋到2027年；當然，我們也有長期供應協議（LTSA），同樣延伸到2027年及更久。所以我們透過LTSA已覆蓋了明年以及更往後的很大一部分，在某些情況下也包含積壓訂單。

Look, I think the other answer why we’re not giving out the backlog, perhaps, is that we are not taking orders if customer wants to place order. We are looking at whether we can deliver, because once we take the order, we’re going to put them on the production queue. Right now it’s full. So it’s difficult to know how much the backlog is. In fact, I think if we open up the floodgate, it’s going to be huge. So we’re not counting on it.

你看，我想我們不公布積壓訂單的另一個原因，可能是：即使客戶想下單，我們也不一定接單。我們會先評估是否能交付，因為一旦接單，我們就會把它們排進生產隊列。而現在隊列已滿。所以很難知道積壓訂單到底有多少。事實上，我覺得如果我們打開閘門，數字會非常巨大。所以我們不把它納入計算。

And as far as 2027 is concerned, I think if we want to sign up a lot of -- well, team is working on other long-term supply agreement but that doesn’t mean that 2027 is all spoken of. That is, we are measuring how much we’re expanding, how much we’re willing to sign up for long-term supply agreement, and some of them we want to reserve for customers coming in. So I think right now order is not a problem, mostly is how fast we can grow.

至於2027年，我想如果我們想簽很多——嗯，團隊正在推進其他長期供應協議，但這不代表2027年已全部被預訂完。也就是說，我們會衡量擴產幅度、我們願意簽多少長期供應協議，其中一部分我們也想保留給後續進來的客戶。所以我認為目前訂單不是問題，主要是我們能多快成長。

Okay. I appreciate that perspective. Couple more questions from me. I’ll jump on the line here. The next one is on indium phosphide here, and specifically how much of that was shipped into China versus rest of the world, and how do you see that going over the next, say, couple of years or so?

好的。我很感謝這個觀點。我還有幾個問題。我接著問。下一個是關於磷化銦，具體來說，有多少出貨到中國、多少到世界其他地區？以及你們如何看待未來（比如）接下來幾年的走勢？

I ask this because you’ve obviously signed up an agreement with a Chinese laser company, but then also two North American-based laser companies here. And while I’m sure those aren’t the only customers you’re going to have for indium phosphide here, I’d love to get a sense of how this ratio changes over time. Kind of what’s the peak from China, and what do you see as kind of that long-term stable share between China and the rest of the world?

我之所以問，是因為你們顯然已與一家中國雷射公司簽了協議，同時也與兩家北美的雷射公司簽了協議。我相信這些不會是你們磷化銦的唯一客戶，但我很想了解這個比例會如何隨時間變化。也就是說，中國占比的高點大概會到哪裡？長期來看，中國與世界其他地區之間，穩定的市占/營收占比大概會是什麼樣子？

That’s a great question, Richard. So there’s certainly a lot of market opportunity in China right now. As we’ve said, we’re doubling our capacity, actually tripling our capacity in 2026 and China is definitely taking some of that capacity as we move forward.

這是個很好的問題，Richard。所以目前中國確實有很大的市場機會。如我們所說，我們在2026年會把產能加倍，實際上是把產能提高到三倍，而隨著我們往前推進，中國肯定會消化其中一部分產能。

What we’re seeing with the permits and with the demand globally -- this is a global market, remember. We are seeing growth across all sectors. So China right now is definitely above 50% of our revenue in Q2. I would anticipate that we would see a revenue split moving forward somewhere in that 40% to 60% range as we build up both capacity and we build up long-term supply agreements, both within China and throughout the rest of the world. So yeah, I would kind of model that as China being 40% to 60% of our revenue.

從許可證以及全球需求來看——請記得，這是一個全球市場。我們看到各個領域都在成長。所以目前在第二季，中國占我們營收的比重確實超過50%。我預期未來營收拆分會落在40%到60%的區間，因為我們同時擴充產能，也在中國以及世界其他地區建立長期供應協議。所以，是的，我會把中國建模為占我們營收的40%到60%。

Okay. Last question for me is on the topic of gross margins. I know there was a previous question on this topic, I’m going to ask the question slightly different, Gary. And I think even Morris commented today, and we’ve heard this many times in the past, where indium phosphide is a positive mix dynamic and only seemingly getting better given the pricing comments you’ve mentioned here. But also we’re going to see from your capacity expansion some depreciation costs here.

好的。我最後一個問題是關於毛利率。我知道之前有人問過這個主題，我會用稍微不同的方式來問，Gary。而且我想Morris今天也提到過，我們過去也多次聽到：磷化銦在產品組合上是正向的動能，而且考量你們提到的定價評論，這個趨勢似乎只會更好。但同時，隨著你們擴產，折舊成本也會上來。

And so would love to get a sense of -- from the number you just reported in the second quarter, which is utterly fantastic. How much more can it go? Can you get to a number that starts with a five?

所以我很想了解——以你們剛公布的第二季數字來看，真的非常亮眼。它還能再提升多少？你們能做到以「5」開頭的數字嗎？

All right. Well, let’s see. Can we get there? It would be a record for us, that’s for sure. But yes, further increases in volume and improvements in productivity, as well as continued favorable mix, moving towards larger diameter substrates. We should definitely be targeting a number that begins with a five. But I don’t want you to, Richard, okay? Let’s get there first. (multiple speakers)

好。嗯，讓我們看看。我們能做到嗎？那肯定會是我們的紀錄。不過是的，隨著出貨量進一步提升與生產力改善，以及持續有利的產品組合，朝向更大直徑的基板。我們絕對應該以一個以「5」開頭的數字為目標。但我不希望你這樣做，Richard，好嗎？我們先做到再說。(多位講者)

You’ve been with us for a long time to cover us, and obviously, this is, as Morris said, sort of more than an inflection point. This is a huge step up. So we’ll try and be as specific and accurate as we can but it’s moving pretty fast. Yeah. So we want to be careful what we tell you. Yeah, we’re going to target something that begins with a five.

你長期以來一直追蹤並報導我們，而顯然，如 Morris 所說，這某種程度上不只是拐點。這是一次巨大的躍升。所以我們會盡量具體且精準，但進展非常快。是的。因此我們想謹慎一些，關於我們告訴你的內容。是的，我們會以一個以「5」開頭的數字為目標。

Charles Shi, Needham.

Charles Shi，Needham。

I guess you guys are in China right now. So the first question I have regarding the capacity exiting the year, raising from basically $35 million per quarter to $60 million, then next year basically raising from $17 million per quarter to $130 million per quarter. Are those numbers correct?

我想你們現在人在中國。所以我第一個問題是關於年底的產能：從基本上每季 3,500 萬美元提高到 6,000 萬美元，然後明年基本上從每季 1,700 萬美元提高到每季 1.3 億美元。這些數字正確嗎？

And I think previously, on the previous capacity numbers you plan to spend -- well, I’m looking at my numbers, $14 million CapEx this year, $100 million CapEx next year. What’s the new CapEx number because it does look like the capacity growth has upsized a lot. I want to get some thoughts on CapEx.

我記得之前，針對先前的產能數字，你們計畫的支出——嗯，我在看我手上的數字，今年資本支出（CapEx）1,400 萬美元、明年資本支出 1 億美元。新的資本支出數字是多少？因為看起來產能成長幅度大幅上修了。我想聽聽對資本支出的看法。

Yeah. Thanks, Charles. So the capacity is growing faster than we thought. Certainly, in terms of revenue, that comes out from a number of factors, as Morris said. We’ve been able to accelerate the actual physical capacity that we have here. We are moving to larger diameter substrates, which, of course, helps the revenue, and we’re seeing greater productivity.

是的。謝謝你，Charles。所以產能成長比我們原先想的更快。當然，就營收而言，這是由多項因素所帶動，如 Morris 所說。我們已經能加速我們在這裡的實體產能提升。我們正轉向更大直徑的基板，這當然有助於營收，同時我們也看到更高的生產力。

As Gary mentioned, moving to larger and larger volumes increases the productivity of the facility. We’ve seen this time and time again. So part of the capacity increase that we’re seeing here isn’t just a CapEx spend, but it’s a productivity and a product mix change here, and that’s what’s really allowing us to grow the revenue quicker than we anticipated. So there’s a lot going on here.

如 Gary 提到的，往更大、更高的產量規模移動會提升工廠的生產力。我們一次又一次看到這種情況。因此，我們在這裡看到的部分產能提升不只是資本支出投入，而是生產力與產品組合的變化，而這正是讓我們能比預期更快推動營收成長的原因。所以這裡有很多事情同時在發生。

Now, when you’re looking at CapEx spend to get this additional capacity, there is actually not a lot of additional CapEx spend here. As I said, as we’re gaining capacity through other factors rather than just hardware deployment, it means that we can gain capacity without huge additional CapEx spend on that.

現在，當你在看為了取得這些額外產能所需的資本支出時，實際上並不需要太多額外的資本支出。如我所說，當我們是透過其他因素而不只是硬體部署來獲得產能時，就代表我們可以在不需要大幅增加資本支出的情況下提升產能。

Okay. So basically, sounds like you are reaffirming the CapEx plan you previously communicated. Is that right?

好的。所以基本上，聽起來你們是在重申先前對外溝通的資本支出計畫。是這樣嗎？

That's correct.

沒錯。

Okay. The second question, once again, on backlog. Morris, if I understand what you said, you only want to book the order. That’s what I heard. You only want to book the order -- ONLY a booked order can be put in backlog when you can commit to ship to the customers, given that you are probably still trying to catch up with the demand by increasing supply. $100 million-plus backlog, but I think I’m looking at you are already shipping $30 million-plus this quarter. Looks like implied for September quarter, you probably will be able to ship a $50 million.

好的。第二個問題，再次關於在手訂單（backlog）。Morris，如果我理解你剛才說的，你只想認列訂單。這是我聽到的。你只想認列訂單——只有在你能承諾出貨給客戶時，已認列的訂單才能放進在手訂單，因為你們可能仍在透過增加供給來追趕需求。你說在手訂單超過 1 億美元，但我看你們本季已經出貨超過 3,000 萬美元。看起來隱含到 9 月季度，你們可能可以出貨 5,000 萬美元。

I wonder if you can give us a little bit more, how much more than $100 million you actually can see, because it sounds a little bit too low to me that your backlog only covers a little bit over two quarters of the next two quarters of the expected indium phosphide revenue at the implied Q3 run rate. I want to get some thoughts. What exactly is your visibility now? And why don’t you book more orders? We would like to see maybe the backlog can be a little bit higher than what you just communicated.

我想請你們多分享一點：你們實際看到的在手訂單到底比 1 億美元多多少？因為對我來說，若以隱含的第三季 run rate 來看，僅覆蓋未來兩個季度中略多於兩個季度的預期磷化銦營收，這個在手訂單水位聽起來有點偏低。我想聽聽你們的看法。你們目前的能見度到底是什麼？以及為什麼不認列更多訂單？我們希望看到在手訂單可能可以比你們剛才溝通的再高一些。

Yeah. The backlog, as I say, we’re not giving actual backlog numbers out here. I can say that it’s well over $100 million. It exceeds two quarters, for sure. I just don’t want to give out too much information about that at this time. The backlog is also covered with a lot of long-term supply agreements that are in place. So there’s a lot of commitment going out well beyond two quarters, both in terms of backlog and long-term supply agreements.

是的。關於在手訂單，如我所說，我們不會在這裡提供實際的在手訂單數字。我可以說它遠遠超過 1 億美元。肯定超過兩個季度。我只是目前不想透露太多相關資訊。在手訂單也有許多是由已簽訂的長期供應協議所涵蓋。所以無論是在手訂單或長期供應協議，在兩個季度之後都還有大量承諾。

But I really don’t worry that this is a short-term thing. Remember, a lot of this backlog here is a factor of the permits, as we wait for permits, and it doesn’t include a lot of the China business. So we can turn the China business a lot quicker than we can turn the permitting business.

但我真的不擔心這只是短期現象。記住，這裡很多在手訂單是許可證（permit）的因素：我們在等待許可證，而且其中不包含很多中國業務。所以相較於許可證相關業務，我們可以更快地推動中國業務。

As Gary said, permits are certainly getting freer. They’re getting quicker, but it still takes time to apply for a permit, and we cannot apply for a permit without an order in place.

如 Gary 所說，許可證確實變得更容易取得。流程也更快了，但申請許可證仍需要時間，而且在沒有訂單的情況下，我們無法申請許可證。

So let me comment on the backlog issue. The backlog, when our visibility was not good, then usually it’s only one quarter or maybe two quarters issue. But right now, visibility is so good that it extend out three or four quarters. So it’s not a fair comparison in a way.

所以我來補充一下在手訂單的議題。當我們的能見度不佳時，在手訂單通常只會是一個季度或可能兩個季度的問題。但現在能見度非常好，已經延伸到三到四個季度。所以某種程度上，這樣比較並不公平。

And the other thing is that we are actually, honestly, we’re not taking orders. When customer give us the demand, we look at what we can plan the production capacity will be and talk to customers about, okay, you can place this order because we have now planned capacity, we can accommodate this order. But beyond that, we are not taking orders. So the backlog can be much bigger if we take all the orders, but we’re not expanding the capacity, so why are we taking an order? You understand what I’m saying?

另外一點是，老實說，我們其實沒有在接單。當客戶給我們需求時，我們會看我們能規劃的產能會是多少，並與客戶討論：好，你可以下這張訂單，因為我們現在已規劃好產能，可以承接這張訂單。但除此之外，我們不接單。所以如果我們把所有訂單都接下來，在手訂單可以大得多，但我們並沒有擴產，那我們為什麼要接單？你明白我的意思嗎？

So it doesn’t make any sense to give you, we could have $150 million back order. It’s not the same measure anymore.

所以要把這個數字給你其實沒有任何意義，我們可能會有1.5億美元的未交訂單。這已經不是同一個衡量指標了。

Got it. So Morris, just to clarify, backlog is not a quote-unquote issue. I think you’ve proven that’s not an issue. Just want to clarify on that. Okay, there’s maybe a third question I have, maybe a technology question, maybe for Morris.

了解。所以 Morris，澄清一下，積壓訂單（backlog）並不是所謂的問題。我想你已經證明那不是問題。只是想把這點釐清。好，我可能還有第三個問題，可能是技術問題，或許問 Morris。

Morris, you guys also have a pretty strong gallium arsenide epitaxy line. I’m sure you’ve heard about potential use of VCSEL for scale up, rather than use indium phosphide for scale up. It’s a shorter distance, and VCSEL probably has some advantages there. And I wonder if you have any customer discussion around VCSEL, around maybe supplying them the gallium arsenide substrates there, and how are any of the conversations going so far?

Morris，你們也有相當強的砷化鎵（gallium arsenide）外延（epitaxy）產線。我相信你也聽過，可能會用 VCSEL 來擴產，而不是用磷化銦（indium phosphide）來擴產。它的傳輸距離較短，而 VCSEL 在那方面可能有一些優勢。我想知道你們是否有和客戶討論 VCSEL，例如在那裡供應砷化鎵基板，以及目前這些對話進展如何？

Yeah. We have customers in China who are developing VCSEL solutions, and in fact, there’s a US customer also talking to us about using gallium arsenide for VCSEL solutions. Correct?

有。我們在中國有客戶正在開發 VCSEL 解決方案，事實上，也有一家美國客戶在和我們談，想用砷化鎵做 VCSEL 解決方案。對嗎？

Yeah. Correct. We’re currently a supplier to gallium arsenide VCSELs for two large data center companies, or laser companies. So yeah, we do have some visibility out there. And we are seeing that these technologies co-exist, right? The people that are deploying gallium arsenide VCSELs are also very, very strongly focused on indium phosphide as well.

是的。沒錯。我們目前是兩家大型資料中心公司（或雷射公司）的砷化鎵 VCSEL 供應商。所以是的，我們確實對外部情況有一定能見度。而且我們看到這些技術是共存的，對吧？部署砷化鎵 VCSEL 的人，同時也非常、非常專注於磷化銦。

I’m seeing more focus on the indium phosphide side of the business than the VCSELs. But as I say, the VCSEL technology has been out there for a long time, and I don’t see it going away. I see an indium phosphide lasers, silicon photonics, and the gallium arsenide-based VCSELs co-existing in this marketplace.

我看到業務重心更多是在磷化銦這一側，而不是 VCSEL。但如我所說，VCSEL 技術存在已久，我不認為它會消失。我認為磷化銦雷射、矽光子，以及以砷化鎵為基礎的 VCSEL，會在這個市場中共存。

So from what I understand, looks like it’s the speed is the killer, or is in favor of indium phosphide. VCSEL, I think, is more difficult to reach 200G, both in terms of laser emitter as well as detectors. So when you go to 200G, it has to be indium phosphide detectors and also indium phosphide laser work better.

所以就我理解，看起來速度才是關鍵，或者說速度更有利於磷化銦。VCSEL 我認為要達到 200G 更困難，無論是雷射發射端還是偵測器端。所以當你要做到 200G，就必須用磷化銦偵測器，而且磷化銦雷射也表現更好。

Well, I am in favor of the indium phosphide for sure. The reason is that indium phosphide, we got more margins out of the supply chain, and we are a dominant player in indium phosphide. So that’s the answer.

嗯，我當然是支持磷化銦。原因是磷化銦在供應鏈中能帶來更高的毛利，而我們在磷化銦領域是主導者。所以答案就是這樣。

Tim Savageaux, Northland Capital Markets.

Tim Savageaux，Northland Capital Markets。

I wanted to kind of stick with that one question, one follow-up thing before. I suppose that’s somewhat of an outlier. But the question is -- and maybe this sort of syncs up with your China commentary. To what extent were the new deals, long-term supply agreements you’ve announced in recent weeks, contributors either to the Q2 results or Q3 guide, or do we have a fair bit of that in front of us?

我想延續剛才那個問題，再追問一點。我想那可能算是比較特例。但問題是——也許這和你對中國的評論有點呼應。你們最近幾週宣布的新交易、長期供應協議，在多大程度上對第二季（Q2）結果或第三季（Q3）指引有貢獻？還是說其中相當一部分影響還在前面？

That’s a great question, Tim. The latter is the answer. We have a fair bit of that in front of us. We’re supplying materials to back up those long-term supply agreements to get qualified and get ready for them so they don’t move the needle too much on Q2. We’re going to see a bigger impact in Q3, and then we’re going to see further growth moving out through Q4 and into next year and beyond.

Tim，這是個很好的問題。答案是後者。其中相當一部分影響還在前面。我們正在供應材料以支撐那些長期供應協議，讓它們完成認證並做好準備，因此對 Q2 的拉動不會太大。我們會在 Q3 看到更大的影響，然後在 Q4 以及明年及之後持續看到進一步成長。

And the Casela deal doesn't start until 2027.

而且 Casela 的交易要到 2027 年才開始。

Right.

對。

That’s a good point. That’s not even happening right now in terms of that contract even though we are selling stuff to them.

這點說得很好。就那份合約而言，現在甚至還沒有開始發生，儘管我們確實有賣一些東西給他們。

There are no further questions at this time. I will now turn the call back to Leslie Green for closing remarks.

目前沒有其他問題。我現在把電話交回給 Leslie Green 做結語。

Thank you for participating in our conference call. We will be participating in the Needham Virtual Investor Conference in August and the B. Riley Securities Consumer and TMT Conference in September and we hope to see many of you there.

感謝各位參與我們的電話會議。我們將於八月參加 Needham 線上投資人會議，以及九月參加 B. Riley Securities 消費與 TMT 會議，希望能在那裡見到各位。

As always, feel free to contact us if you’d like to set up a call, and we look forward to speaking with you in the near future.

一如往常，如果你想安排通話，歡迎隨時與我們聯繫，我們也期待在不久的將來與各位交流。

This concludes today’s call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位出席。您現在可以掛線。