Coherent Corp (COHR) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Coherent Corp. FY '24 First Quarter Earnings Call. (Operator Instructions) Please be advised today's conference is being recorded.

各位來賓，感謝您的耐心等待。歡迎參加Coherent公司2024財年第一季財報電話會議。 （操作說明）請注意，本次會議正在錄音。

I would now like to hand the conference over to your speaker today, Paul Silverstein. Please go ahead.

現在我把會議交給今天的演講嘉賓保羅·西爾弗斯坦。請開始吧。

Thank you, Kevin, and good morning, everyone. Thank you for joining our first quarter fiscal 2024 earnings call. Today on the call, we have Chair and CEO, Dr. Chuck Mattera, and a number of executives who Chuck will introduce in a moment.

謝謝凱文，大家早安。感謝各位參加我們2024財年第一季財報電話會議。今天出席會議的有董事長兼執行長查克·馬特拉博士，以及幾位高階主管，查克稍後會一一介紹他們。

Yesterday, after the market closed, Coherent issued a news release and posted a shareholder letter along with an updated investor presentation in the Investor Relations section of our website. Both of these documents were furnished on a Form 8-K. This morning, we filed our 10-Q. Today's conference call will be available for webcast replay in the Investor Relations section of our website.

昨天收盤後，Coherent公司發布了新聞稿，並在公司網站的「投資者關係」版塊發布了致股東信和更新的投資者簡報。這兩份文件均以8-K表格的形式提交。今天上午，我們提交了10-Q季報告。今天的電話會議將在公司網站的「投資者關係」區塊提供網路直播回放。

Before I turn the call over to Chuck for his opening remarks, please note that following our September overview webinar on our Communications market, we plan on hosting our second market overview webinar focused on our industrial market to be held on December 14. I want to call everyone's attention to our shareholder letter, which contains our traditional financial statements that were previously set forth in our earnings press release along with detailed information around our operating performance, key trends and outlook. The plan is the bulk of this morning's call to answering questions from the analysts from the investment community.

在將電話轉交給 Chuck 做開場白之前，請注意，繼我們九月份舉辦的通訊市場概覽網路研討會之後，我們計劃於 12 月 14 日舉辦第二次市場概覽網路研討會，重點關注我們的工業市場。我想提請大家注意我們的股東信，其中包含我們先前在獲利新聞稿中發布的傳統財務報表，以及有關我們營運績效、關鍵趨勢和展望的詳細資訊。今天早上電話會議的主要內容是回答投資界分析師提出的問題。

I also want to remind everyone on this call, we will refer to forward-looking statements, including all statements the company will make about its future performance and market outlook, and actual results may differ materially from these forward-looking statements. Factors that could cause actual results to differ materially are set forth in the first quarter 2024 shareholder letter and in our SEC reports. Coherent assumes no obligation to update any forward-looking statements, which speak only as of their respective dates.

我還要提醒各位，我們將提及前瞻性陳述，包括公司就其未來業績和市場前景所做的所有陳述，但實際結果可能與這些前瞻性陳述有重大差異。可能導致實際結果出現重大差異的因素已在2024年第一季致股東信和我們提交給美國證券交易委員會（SEC）的報告中列出。 Coherent公司不承擔更新任何前瞻性陳述的義務，這些陳述僅代表其各自發布之日的情況。

Also during this call, we'll discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the shareholder letter. With respect to historical non-GAAP financial measures, we will limit our discussion to those that are reconciled in the shareholder letter.

在本次電話會議中，我們將討論GAAP和非GAAP財務指標。 GAAP與非GAAP指標的調整表已包含在致股東信中。關於歷史非GAAP財務指標，我們將僅限於討論致股東信中已調節的指標。

With that, it is my pleasure to turn the call over to Coherent's Chair and CEO, Dr. Chuck Mattera. Chuck, please go ahead.

接下來，我很高興將電話交給Coherent公司董事長兼執行長查克·馬特拉博士。查克，請開始吧。

Thank you, Paul. Leadership development is among the most important jobs of a CEO. Given how extensive our disclosures are in the shareholder letter, I have the following senior leaders with me on the call today. They are Interim Chief Financial Officer, Rich Martucci, Chief Strategy Officer and President of the Materials segment, Dr. Giovanni Barbarossa; EVP of Lasers, Dr. Chris Dorman, who came to us through the Coherent acquisition; Sohail Khan, EVP of our Wideband-Gap Technologies silicon carbide business; our Chief Commercial Officer, Magnus Bengtsson, who leads our global sales and service org, and who also came to us through the Coherent acquisition; Chief Marketing Officer, Dr. Sanjai Parthasarathi; and the EVP of our telecommunications business, Dr. Beck Mason, a recent market hire and one of the industry's top leaders, who chose to come to Coherent as a place to grow.

謝謝保羅。領導力發展是執行長最重要的職責之一。鑑於我們在致股東信中披露的信息非常詳盡，今天與我一同參加電話會議的還有以下幾位高級領導：臨時首席財務官里奇·馬圖奇 (Rich Martucci)；首席戰略官兼材料事業部總裁喬瓦尼·巴巴羅薩博士 (Dr. Giovanni Barbarossa)；激光業務執行副總裁克里斯·多爾曼博士 (Dr. Chris Dorman)，他透過對相干公司的收購加入我們；寬帶隙技術碳化矽業務執行副總裁索海爾·汗 (Sohail Khan)；首席商務官馬格努斯·本特松 (Magnus Bengtsson)，他領導著我們的全球銷售和服務團隊，也是透過對相干公司的收購加入我們；首席營銷官 Becki Part Becki Part​​an (Brs. Baker Mason)，他是近期加入公司的，也是業界頂尖的領導者之一，他選擇加入相干公司是為了尋求個人發展。

They will participate in the Q&A fireside today to provide investors a rich source of information about the depth and breadth of our markets, technologies, operations, and overall business, and especially our leadership talent. And I'm sure you will enjoy interacting with them today.

他們將參加今天的問答環節，為投資者提供關於我們市場、技術、營運和整體業務，特別是我們的領導人才等方面的豐富資訊。我相信您今天會很享受與他們互動。

In the first quarter, the Coherent team did a good job executing in the midst of a challenging macroeconomic environment. We posted revenue of $1.053 billion, which was slightly above the midpoint of our guidance, and non-GAAP EPS of $0.16, which was above the midpoint of our guidance. Operating cash flow was $199 million, which marked a sequential and year-over-year improvement. We invested $62 million in capital equipment, and we retired $19 million of debt.

第一季度，在充滿挑戰的宏觀經濟環境下，Coherent團隊表現出色。我們公佈的營收為10.53億美元，略高於預期中位數；非GAAP每股收益為0.16美元，高於預期中位數。營運現金流為1.99億美元，月增和年比均有所成長。我們投資6200萬美元用於資本設備，並償還了1900萬美元的債務。

Macroeconomic headwinds and uncertainty continue to affect many of our end markets and will continue to constrain our near-term growth and visibility. Our first quarter results, however, demonstrate the success of our diversification strategy. While some of our markets remain challenged, our silicon carbide business, in which we recently announced $1 billion of investments by Mitsubishi Electric and DENSO, enjoyed another quarter of strong demand.

宏觀經濟逆風和不確定性持續影響著我們的許多終端市場，並將繼續限制我們近期的成長和前景。然而，我們第一季的業績表明，我們的多元化策略取得了成功。儘管部分市場仍面臨挑戰，但我們近期宣布三菱電機和電裝投資10億美元的碳化矽業務，又迎來了一個強勁的需求季度。

We also enjoyed a second straight quarter of extremely strong demand for our AI-related Datacom transceivers and components. Both of these are indicative of the breadth and differentiation we offer the market leaders who are disrupting the status quo and underpinning the irreversible market megatrends that we enable.

我們的人工智慧相關數據通訊收發器和組件連續第二季需求強勁。這兩點都表明，我們為那些正在顛覆現狀、推動不可逆轉的市場大趨勢的市場領導者提供了廣泛且差異化的產品。

In addition to continuing to invest in our core assets, we are taking substantive actions to ensure that we improve our operating performance, especially to drive recovery in our margin structure, including through global integration and transformation and the realization of our synergy plan from the Coherent acquisition as well as our previously announced restructuring activities.

除了繼續投資我們的核心資產外，我們還在採取實質措施，以確保改善我們的經營業績，特別是推動利潤率結構的復甦，包括透過全球整合和轉型，以及實現從收購 Coherent 中獲得的協同效應計劃，以及我們先前宣布的重組活動。

Turning now to our guidance for the second quarter of fiscal '24, revenue of approximately $1.05 billion to $1.175 billion, and non-GAAP earnings per share of approximately $0.14 to $0.32. Our guidance for fiscal year '24 is revenue of approximately $4.5 billion to $4.7 billion, which is unchanged from our previous guidance, and non-GAAP earnings per share of approximately $1 to $1.50, which is also unchanged from our previous guidance.

現在來看看我們對2024財年第二季的業績預期，營收約10.5億美元至11.75億美元，非GAAP每股收益約為0.14美元至0.32美元。我們對2024財年的業績預期為營收約45億美元至47億美元，與先前的預期一致；非GAAP每股收益約為1美元至1.50美元，也與先前的預期一致。

And while our annual guidance remains unchanged, this simply reflects the confidence we have in that guidance, and we continue to believe that we still have very real opportunities to exceed those results by several hundred million dollars, as we discussed last quarter. We will not hesitate to increase our outlook as we gain improved visibility regarding our ability to capitalize on these opportunities within fiscal year '24.

儘管我們的年度業績預期保持不變，但這只是反映了我們對該預期的信心。正如我們上個季度所討論的，我們仍然相信我們有很大的機會超越這些預期業績數億美元。隨著我們對在2024財年把握這些機會的能力有了更清晰的認識，我們將毫不猶豫地提高業績預期。

Now before I -- before we turn to your questions, I would like to say how appreciative and proud I am of our employees whose tireless dedication are setting the stage for now, next and beyond. Coherent is well positioned with differentiated technology, exceptional talent and high-quality efficient manufacturing platforms capable of delivering products to the market that are growing at high single digits to double digits. And I believe that we are better positioned than others to take full advantage of our existing market positions and to grow deeper into these markets because of our growing scale and customer intimacy and trust.

在我們開始回答各位的問題之前，我想表達我對全體員工的感激和自豪之情，正是他們孜孜不倦的奉獻精神，才為公司現在、未來乃至更長遠的發展奠定了堅實的基礎。憑藉差異化的技術、卓越的人才和高效優質的生產平台，Coherent 擁有得天獨厚的優勢，能夠為市場提供高個位數至兩位數成長的產品。我相信，憑藉我們不斷擴大的規模以及與客戶建立的緊密聯繫和信任，我們比其他公司更有優勢充分利用現有的市場地位，並進一步拓展市場。

We are a trusted and valued partner with the industry leaders, and that trust and intimacy creates stability in our core business, and it also creates a flywheel effect of growth opportunities that many other companies simply don't have. We have tremendous upside and platform cost optimization from the ongoing integration, special restructuring and transformation projects over the next few years, and we have a track record to prove our likelihood of success.

我們是業界領導者值得信賴且備受重視的合作夥伴，這種信任和緊密的合作關係不僅為我們的核心業務帶來了穩定性，也創造了許多其他公司所不具備的成長機會。未來幾年，我們將透過持續的整合、專案重組和轉型項目，實現巨大的成長潛力和平台成本優化，而我們過往的業績也證明了我們成功的可能性。

We have a good plan and roadmap to take advantage of all of these assets and the opportunity the markets are offering today and to take advantage of the recovery and the anticipated growth in our markets. We have a team of world-class technologists, industry pioneers, and executives with a demonstrated capability for identifying and capitalizing on market megatrends.

我們制定了完善的計劃和路線圖，以充分利用所有這些優勢和當前市場提供的機遇，並掌握市場復甦和預期成長帶來的機會。我們擁有一支世界一流的技術專家、產業先驅和高階主管團隊，他們具備識別和掌握市場大趨勢的卓越能力。

With that, I'll turn the call back over to Paul. Paul?

那麼，我就把電話轉回給保羅。保羅？

Thanks, Chuck. We will now open the call to analysts' questions. (Operator Instructions) This call is scheduled for a full hour. (Operator Instructions) Please direct your questions to Chuck, who will decide who is best to respond. Kevin, please go ahead.

謝謝查克。現在我們將開放分析師提問環節。 （操作員說明）本次電話會議預計持續一小時。 （操作員說明）請將您的問題發送給查克，由他決定由誰來回答。凱文，請開始。

(Operator Instructions) Our first question comes from Samik Chatterjee with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的薩米克·查特吉。

Can you hear me now?

現在能聽到我說話嗎？

Yes.

是的。

And if I can just start, I mean, last quarter, you did talk about -- and you referenced this in the shareholder letter as well, the capacity increase on the capacity ramp that you're planning and the incremental orders that you can get from the customers if your capacity ramp goes per plan or exceeds your current base case. If you can share your thoughts around the ability to sort of exceed that capacity ramp, what are you seeing as bottlenecks and be able to go to the customers and get incremental orders for the AI -- from the AI use cases and the [800] will be done through those in relation to sort of executing on that capacity ramp. And I have a follow-up after that.

如果我可以從頭開始，我的意思是，上個季度您確實談到了——您在致股東信中也提到了——您正在計劃的產能提升計劃，以及如果產能提升按計劃進行或超過當前基準情況，您可以從客戶那裡獲得的增量訂單。您能否分享一下您對產能提升計畫能否超額完成的看法？您認為在實現產能提升方面有哪些瓶頸？您認為在從人工智慧應用案例中獲得增量訂單方面會遇到哪些困難？ [800] 將透過這些案例來實現，這與產能提升計畫的執行密切相關。之後我還有一個後續問題。

Okay. Thank you, Samik. Samik, I want to ask Giovanni to take that because he's got a view all the way from the laser through the transceiver. Giovanni?

好的。謝謝你，薩米克。薩米克，我想請喬瓦尼來拍，因為他能看到從雷射器到收發器的整個過程。喬瓦尼？

So Samik, thanks for the question. So I would say, generally speaking, we're doing better than our expectations, but it's very much a moving target in terms of the opportunity here in the sense that the target is getting higher and higher. Particularly, as we said in the shareholder letter, as the engagement with new significant AI players are increasing, particularly those players that we have not been historically strong at, so we think that the overall opportunity is getting larger and our ability to meet this larger and larger opportunity, obviously, gets more complex, more challenging.

薩米克，謝謝你的提問。總的來說，我們的表現超出了預期，但就機會而言，目標一直在不斷提高，因此情況瞬息萬變。正如我們在致股東信中所述，隨著與新的重要人工智慧參與者（尤其是我們以往不太擅長的參與者）的合作日益增多，我們認為整體機會正在擴大，而我們應對這一日益增長的機遇的能力，顯然也變得更加複雜，更具挑戰性。

But I think we have all hands on deck and the entire team is focused on several of the needs to ramp, which are not only related to the supply chain, because as new products, and this is -- as you know, as 800G is very much a new product, there were all these NPI-related challenges to bring up to speed, the manufacturing lines, the test equipment, the -- of course, supply chain, as we said. But most important to make sure that we deliver high-quality products to our customers, the volumes that are [pushing] us to have to.

但我認為我們已經全力以赴，整個團隊都專注於滿足多項產能提升需求，這些需求不僅與供應鏈相關，因為作為新產品——正如您所知，800G 是一款全新的產品——我們面臨著諸多與新產品導入 (NPI) 相關的挑戰，需要盡快完成，包括生產線、測試設備，當然還有我們提到的供應鏈。但最重要的是確保我們能夠向客戶交付高品質的產品，滿足目前的需求量。

And so for my follow-up, if I can just ask about the long-term guidance that you gave in the shareholder letter about 40% gross margin and 20% operating margin that you're looking at. Can you share some thoughts about sort of how you're thinking about getting -- making progress through that in relation to cost versus what you need in terms of top line recovery to get to those margin levels? Any thoughts around how much of that we get from cost saves that you're outlining versus any level of volume recovery that you need.

所以，我的後續問題是，關於您在致股東信中提到的40%毛利率和20%營業利潤率的長期目標，能否請您談談您是如何考慮在成本控制和營收成長之間取得進展的？您認為這些利潤率目標中，有多少是透過您提到的成本節約實現的，又有多少是透過所需的銷售成長實現的？

Okay. Thank you, Samik. Rich?

好的。謝謝你，薩米克。你富有嗎？

Thank you. We're going to -- we will benefit from our ongoing cost reduction, which include our restructuring and synergy plans; higher volume, as noted in our guidance; a better mix of product on higher-margin products; and long-term continued to leverage our NPI as well as vertical integration where we can drive margin improvement.

謝謝。我們將受益於持續的成本削減，包括我們的重組和協同效應計劃；正如我們的業績指引中所述，銷量將有所提高；產品組合中高利潤產品的比例將得到改善；我們將長期持續利用新產品導入和垂直整合來提高利潤率。

Next question comes from Ruben Roy with Stifel.

下一個問題來自 Stifel 公司的 Ruben Roy。

I wanted to follow up on Samik's question, Chuck, and talk about just sort of the AI transceiver NPI launches, the delta between sort of your full-year guidance and sort of what you're holding back. I'd love to hear some details. Outside of the supply constraints, it sounds like there's some qualification milestones needed. Is that product-specific, customer-specific? And if you could give us some details on how you expect those qualifications to ramp near-term, and what's left to be done before you actually start kind of seeing some revenues.

查克，我想就薩米克的問題做個後續，談談人工智慧收發器新產品上市的情況，以及你們全年預期和實際上市數量之間的差距。我很想了解一些細節。除了供應限制之外，聽起來還需要達到一些認證里程碑。這些里程碑是針對特定產品還是特定客戶？能否詳細說明一下，你們預計這些認證將在近期如何推進，以及在真正開始產生收入之前還需要完成哪些工作？

Thanks, Ruben. Giovanni?

謝謝，魯本。喬瓦尼？

Thanks for the question. I mean the -- as we said -- as I said earlier, new products generally require an incubation period in the manufacturing line to reach the quality, the yields, the performance that we promised. So those are generally true for any product. This 800G is significantly more challenging than any other product we had before with kind of the same type of market.

謝謝你的提問。我的意思是——正如我們之前所說——新產品通常需要在生產線上經過一段時間的測試和完善，才能達到我們承諾的品質、產量和性能。這通常適用於任何產品。這款 800G 的挑戰性遠超過我們之前推出的任何一款面向類似市場的產品。

So I think the complexity comes from the fact that while we are ramping for the orders that we already have, we're also engaging, as I said, new players in a meaningful way to further extend our opportunity in the near future, and therefore, eventually see, as Chuck mentioned in his remarks, to see an upside for the overall market we can address. So it's a combination of serving needs that we have short-term versus the need to continue to increase the pipeline, the funnel of new opportunities for 800G, with additional customers beyond those that we're already engaged with.

所以我認為複雜性在於，我們一方面要加緊完成現有訂單，另一方面，正如我所說，我們也在積極與新客戶接洽，以期在不久的將來進一步拓展市場機會。因此，正如查克在演講中所提到的，我們最終有望看到整個市場的成長潛力。所以，這既包括滿足短期需求，也包括持續拓展800G新客戶管道，吸引更多現有客戶以外的客戶。

Thanks for the detail. For my follow-up, on telecom, the data points remain pretty negative, and nice to hear you guys talk about bottom here coming out of the September quarter. Can you give us some details on what you're thinking in terms of -- it sounds like inventory is driving some of your view for the rest of the year. But starting in the December quarter, if you can give us any detail on kind of how you're thinking about that business, whether it's market share or kind of what's driving your view on a recovery starting here near-term, however gradual that might be?

感謝您提供的詳細資訊。關於電信業，我的後續問題是，目前的數據仍然相當糟糕，很高興聽到您談到9月份季度末市場觸底反彈。能否詳細說明一下您的考量？聽起來庫存是您今年剩餘時間表現展望的主要因素。那麼，從12月份季度開始，您能否詳細說明您對該業務的看法，無論是市場份額，還是其他因素，您認為短期內（無論多麼緩慢）該業務將會復甦？

Beck?

貝克？

Yes, sure. I think in the telecom softness, it's a combination of end market softness and inventory digestion at our customers. And we've been staying very, very close with our customer base on this and we see progress modestly coming through FY '24 and the rest of the quarters on their inventory digestion. And then we see gradual improvement in the end market demand really progressing through into FY '25.

是的，當然。我認為電信業的疲軟是終端市場疲軟和客戶庫存消化共同作用的結果。我們一直與客戶保持密切聯繫，並看到他們在2024財年及之後幾季的庫存消化工作正在穩步推進。同時，我們也看到終端市場需求在2025財年逐步改善。

Our next question comes from Meta Marshall of Morgan Stanley.

下一個問題來自摩根士丹利的梅塔·馬歇爾。

Great. Maybe just on gross margins. Was the weakness kind of versus expectations on the mix of categories or just -- are there any higher costs that are needing to be paid to kind of clear some of the 800-gig transceiver bottlenecks to be mindful of? And then maybe just as a second question, just any more clarity on how you guys are thinking about debt repayment in fiscal '24?

好的。或許只是毛利率方面的問題。業績疲軟是因為產品類別組合與預期不符，還是僅僅因為－是否需要支付更高的成本來解決一些800G收發器瓶頸問題？另外，能否再問一個問題，你們對2024財年的債務償還計畫有何規劃？

Okay. Maybe Rich.

好吧。也許是里奇。

Yes. So the margin weakness is a result of several factors. One was it's a lower volume that we incurred in the quarter. Unfavorable mix are the main key drivers. However, as well, we did experience a prior period underutilization that hit the P&L as well. For debt reductions, right now, we're anticipating $200 million of paydown for the year.

是的。利潤率疲軟是多種因素造成的。首先是本季銷量下降。不利的產品組合是主要原因。此外，前期產能利用率不足也對損益表產生了影響。至於債務削減，我們目前預計今年將償還2億美元。

Our next question comes from Simon Leopold of Raymond James.

我們的下一個問題來自 Raymond James 公司的 Simon Leopold。

I wanted to get a bit of a clarification-type question here in that, unlike last quarter's shareholder letter -- and by the way, we like the way you're doing this, it's helpful. This one did not mention explicitly several hundred million of AI-related Datacom sales in the outlook. And I'm just wondering how you'd like us to interpret that exclusion versus the prior quarter's letter. And then I've got a quick follow-up.

我想在這裡問一個需要澄清的問題，因為與上個季度的股東信不同——順便說一句，我們很欣賞你們的做法，這很有幫助——這次的股東信在展望中沒有明確提及數億美元的AI相關數據通信銷售額。我想知道你們希望我們如何解讀這項排除項，以及它與上個季度股東信中的內容有何不同。另外，我還有一個後續問題。

Simon, thanks for your question. I'd like to get us back to basics. We have the guidance. The guidance is the guidance. I made some additional comments this morning to give a sense that we are still aiming to do more. But I don't want to get us into a mode where we're going to have guidance and the guidance on top of the guidance. So I would just want to get us back to the basics. That's what we're doing. And as I indicated today, we might have some upside to it that we can achieve. For sure, we have upside as an opportunity. Okay?

西蒙，謝謝你的提問。我想讓我們回歸基本。我們有指導方針，指導方針就是指導方針。今天早上我補充了一些內容，旨在表明我們仍然致力於做得更多。但我不想讓我們陷入一種指導方針層層疊加的模式。所以我只想讓我們回歸基本。這正是我們正在做的。正如我今天所說，我們或許能從中獲得一些好處。當然，這其中蘊藏著機會。好嗎？

That's very helpful. And then in terms of this AI pipeline of business, I'm just wondering if you could help us bracket how much of this is hyperscale exposure? And how much of it is non-hyperscale? And what I'm getting at is trying to understand a little bit about the customer mix and concentration of the pipeline.

這很有幫助。關於這個人工智慧業務流程，我想請您幫忙估算一下，其中有多少是超大規模應用，又有多少是非超大規模應用？我的意思是，想了解一下客戶組成和業務流程的集中度。

It's a -- Sanjai will take that, Simon. I can tell you, it grows every day. Sanjai.

這是－－桑傑會接受的，西蒙。我可以告訴你，它每天都在成長。桑傑。

Yes. Thanks, Chuck. So last quarter, Simon, we did, 50% of our business came from hyperscalers. And this is both direct as well as indirect sales into hyperscalers. Does that help?

是的，謝謝，查克。西蒙，上個季度，我們確實有50%的業務來自超大規模資料中心。這包括直接銷售和間接銷售給超大規模資料中心的業務。這樣解釋清楚了嗎？

Yes, it does. I guess I'm wondering about the pipeline as more so than the most recent quarter.

是的，確實如此。我更關心的是管道輸送情況，而不是最近一個季度的情況。

So our pipeline is still pretty strong. We expect to -- in fiscal '25, for example, we believe that 80% of our Datacom transceiver revenues will be from hyperscalers, a lot of it, majority of it is -- a vast majority of it driven by AI/ML.

所以我們的業務通路依然非常強勁。例如，我們預計在2025財年，我們80%的資料通訊收發器收入將來自超大規模資料中心，其中很大一部分，甚至絕大部分，都是由人工智慧/機器學習驅動的。

Appreciate that.

謝謝。

Simon, thank you for your feedback too on the letter. Thanks, Simon.

西蒙，也謝謝你對這封信的回饋。謝謝，西蒙。

Our next question comes from Jed Dorsheimer with William Blair.

下一個問題來自 Jed Dorsheimer 和 William Blair。

I guess first question, just want to shift from most of the others around the 800G, and just on some of your comments around the consolidation in compound semis. You mentioned that, one, if you could give a little bit more color on maybe metric [that]. And then two, on the new product introduction, you talked about reducing or improving cycle times. Could you talk about where they're at now and where you hope to get those to?

我想問的第一個問題是，我想稍微偏離一下關於800G的話題，談談您對複合半導體產業整合的一些看法。您提到過這一點，第一，能否詳細解釋一下指標方面的問題？第二，關於新產品導入，您談到了縮短或改進生產週期。能否談談目前的進展以及您希望達到的目標？

Okay. This is Giovanni here. So thanks for the question. So we -- when we acquired Finisar, we acquired a number of wafer fabs, which at that time, we're pretty much fully utilized. And as we were able to transfer products and manufacturing lines between sites and so forth, we were able to identify ultimately what the best footprint for the compound semiconductor manufacturing for the company was going to be. And so that's what we're basically doing now because we couldn't do it that fast. So now what we've been doing, we are -- we've announced several shutdowns of smaller fabs. And we intend to move and integrate those manufacturing lines into our largest fab, which is in Sherman, Texas.

好的，我是喬瓦尼。謝謝你的提問。我們收購Finisar的時候，也收購了一些晶圓廠，當時這些晶圓廠的產能幾乎都已飽和。隨著我們逐步轉移產品和生產線，最終確定了公司化合物半導體製造的最佳佈局。由於時間緊迫，我們現在主要是在做這件事。我們已經宣布關閉幾家規模較小的晶圓廠，並將這些生產線整合到我們位於德克薩斯州謝爾曼市的最大晶圓廠中。

So there was a footprint. We still have some other fabs between Europe and North America that will still be stand-alone because the cost of moving those product lines will be too high and also we would require a lot of requalifications. So we cannot -- we don't see an advantage in moving those lines. But at least for the gallium arsenide -- particularly the gallium arsenide, VCSEL-based type of products, we -- and some of the indium-phosphide-based products, we ultimately decided that Sherman, Texas, will be our center of excellence, our consolidated [fab].

所以，我們已經有了一定的佈局。我們在歐洲和北美之間還有一些晶圓廠，它們仍將保持獨立運營，因為搬遷這些產品線的成本太高，而且我們需要進行大量的重新認證。所以我們無法－我們認為搬遷這些產品線沒有優勢。但至少對於砷化鎵——特別是基於砷化鎵的VCSEL產品，以及一些基於磷化銦的產品，我們最終決定將德克薩斯州謝爾曼市作為我們的卓越中心，我們的集中式晶圓廠。

I'll take the second part, Jed. Thanks for your question. With regard to NPI cycle times, I would say one thing, I think you know that we're built for speed. This place is organized for a great sense of urgency about everything we do. One of the benefits we have with our global footprint is we can do things 24 hours a day, 7 days a week. That's not so easy for everybody else to say. I would tell you that I can't give you a baseline generically because we have so many platforms and so many products in the company. But I will point out that using AI in this last year, our teams have demonstrated a factor-of-two reduction in the cycle time for launching new products from our fiber laser business. And that is going to be a contagious example that goes around the company.

我來回答第二個問題，Jed。謝謝你的提問。關於新產品導入（NPI）週期，我想說一點，我想你也知道，我們公司以速度見長。我們這裡的一切都以高度緊迫感為導向。我們全球化佈局的優點之一就是可以全天候運轉，一週七天無休。這一點對其他公司來說並不容易做到。我無法給出一個通用的基準數據，因為公司擁有眾多平台和產品。但我可以指出，在過去一年裡，我們的團隊利用人工智慧技術，將光纖雷射業務新產品的上市週期縮短了一半。這將會成為公司內部一個具有示範意義的例子。

I think that AI is going to be a great driver, but it's not the only thing that we need to do. And so a factor of two everywhere is a starting point for the mindset of the management team. Okay?

我認為人工智慧將會是一個強大的驅動力，但這並非我們唯一需要做的事情。因此，管理團隊的思維模式應該從各方面都提升一倍開始。明白嗎？

Got it. Just as a follow-up on the silicon carbide business, we are seeing greater restrictions on raw materials from China. And I'm just wondering, graphite is an important component to both the furnaces as well as the input material. Could you just update on supply chain exposure and, if any, in terms of how you see specific to graphite?

明白了。關於碳化矽業務，我們注意到來自中國的原材料供應受到更多限制。我想問一下，石墨既是熔爐的重要組成部分，也是原料。能否介紹一下供應鏈方面的情況，特別是石墨方面？

Thanks, Jed. Sohail, you out there?

謝謝你，傑德。索海爾，你在嗎？

Yes. Yes. Jed, thanks for your question. First answer is no, we don't have the exposure. We have multi-sourced for both base material and the other components. And we have put in place long-term agreements. None of our graphite suppliers have the basics coming from China.

是的。是的。傑德，謝謝你的提問。首先，答案是否定的，我們沒有這種風險敞口。我們的原料和其他組件都是從多家供應商採購的，而且我們已經簽訂了長期協議。我們所有的石墨供應商都沒有從中國進口基礎材料。

Our next question comes from Richard Shannon with Craig-Hallum.

下一個問題來自 Craig-Hallum 公司的 Richard Shannon。

I'll also echo my happiness with the shareholder -- keep it up, please. I want to follow up on the topic of telecom. I guess one of the questions I had looking at some reports here in earnings season so far, including last night, we're seeing some inventory burn still taking place at the equipment level here. Wondering why you're seeing some start of a pickup here. And to the degree to which you can describe it, how much of this recovery is coming from transceiver type products like ZR that you pointed out in the shareholder letter versus things like WSS and ROADMs?

我也要表達我對股東的讚賞——請繼續保持！我想繼續探討電信業這個話題。我看了目前為止財報季的一些報告，包括昨晚的報告，其中一個問題是，我們看到設備層面的庫存消耗仍在繼續。我想知道為什麼您認為這方面開始出現一些回升跡象。您能否具體說明一下，這種復甦有多少來自您在致股東信中提到的ZR這類收發器產品，又有多少來自WSS和ROADM之類的產品？

So thanks for the question. So right now, I think what we're seeing is a little bit more strength on the WSS and the ROADM side, and amplifier, and that portion of the business. And it's really as our customers are burning down inventory right now, and we're starting to see different product lines there have a small pickup this quarter, and we think that's going to continue to double digits for the second half of FY '24.

謝謝你的提問。目前來看，WSS、ROADM 和擴大機等業務板塊表現略有強勁。這主要是因為我們的客戶正在清空庫存，我們開始看到不同產品線在本季度出現小幅增長，我們預計2024財年下半年這一增長勢頭將持續到兩位數。

In our transceiver-based products, we see a lot of designing activity happening right now. There's a lot of RFQs and RFPs, especially for new technology products, like our 100-gig coherent ZR. And there's an increase in RFP activity around 800 gig, which is coming next year. And so we think that's very positive for that segment, but we think that's going to be more delayed towards the latter half of FY '24 and early FY '25 from a ramp perspective. Does that help provide a little more color?

在我們基於收發器的產品領域，目前設計活動非常活躍。詢價和招標數量眾多，尤其是針對新技術產品，例如我們的 100G 相干 ZR。此外，針對 800G 技術的招標活動也在增加，該技術將於明年推出。因此，我們認為這對該領域來說非常有利，但從產能爬坡的角度來看，預計 800G 技術的上市時間將推遲到 2024 財年下半年和 2025 財年初。這些資訊是否能讓您更清楚地了解狀況？

Yes, that does. My follow-on question will be on the display market. I think you talked about service utilizations that have increased here sequentially, I think even a nice 20% number, if I remember correctly, but still below year-ago levels here. I wonder if you have any visibility into those utilizations continuing to improve and perhaps even get back to year-ago levels. And then does this imply or just give you better visibility on further CapEx orders within the display unit?

是的，確實如此。我的下一個問題是關於顯示器市場的。我記得您提到過這裡的服務利用率有所提升，好像達到了20%左右，但仍然低於去年同期水準。我想知道您是否了解這些利用率是否會繼續改善，甚至恢復到去年同期水準？這是否意味著，或者只是讓您對顯示器部門的後續資本支出訂單有更清晰的了解？

Richard, thank you very much. Chris Dorman?

理查德，非常感謝。克里斯多爾曼？

Yes. In display, the utilization of the OLED tools drives the service revenue. And it's worth remembering that there are two factors in terms of the utilization; it's the number of phone screens that are produced, but there's a multiplying factor in terms of the percentage of phones which are using OLED screens. And that has led to an uptick in the service revenue, the utilization of the excimer lasers, and that will continue through the year.

是的。在顯示器領域，OLED 工具的使用率推動了服務收入的成長。值得注意的是，利用率受兩個因素影響：一是手機螢幕的產量，二是使用 OLED 螢幕的手機佔比，後者會產生倍增效應。這導致了準分子雷射利用率的提升，服務收入也隨之增長，而且這種趨勢將持續到年底。

Our next question comes from Sidney Ho with Deutsche Bank.

下一個問題來自德意志銀行的 Sidney Ho。

Great. I want to switch gears over to the industrials market. You seem quite confident that the business will improve in the second half of fiscal '24. Can you talk about which subsegments do you think will lead the recovery between semicap display, precision manufacturing, and aerospace? Particularly interested in your comment in precision manufacturing, you're seeing second consecutive order of growth, and some customers are requesting shipments on a short notice, but that's quite different than what we are hearing from other broad-based semiconductor companies.

好的。我想把話題轉到工業市場。您似乎對2024財年下半年的業務好轉很有信心。您能否談談您認為半導體顯示器、精密製造和航空航太這幾個細分領域中，哪些會引領復甦？我對您在精密製造方面的觀點特別感興趣，您看到了連續第二個數量級的增長，一些客戶甚至要求短期發貨，但這與其他綜合半導體公司的情況截然不同。

Okay. Sidney, this is Chuck. Sidney, we may have two or three people that have an angle on this, but we'll start with Sanjai.

好的。西德尼，這位是查克。西德尼，可能有兩三個人對這件事有不同的看法，但我們先從桑傑說起。

Yes. Thanks, Chuck. So in terms of our industrial market group is broken up into verticals. So we have our precision manufacturing vertical, our semicap vertical, our display vertical, and aerospace and defense. We are really excited about semicap. That market for us has been growing very steadily quarter-over-quarter, year-over-year. So there is -- we continue to see a lot of demand, both from existing customers and new customers. And the envelope of applications seem to continue to improve.

是的，謝謝查克。就我們的工業市場而言，我們將其細分為多個垂直行業。我們有精密製造垂直產業、半導體垂直產業、顯示器垂直產業以及航空航太和國防垂直產業。我們對半導體市場尤其看好。這個市場一直以來都保持著非常穩定的成長，季度環比和年度同比均如此。因此，我們持續看到來自現有客戶和新客戶的強勁需求。而且，應用範圍似乎也在不斷擴大。

On precision manufacturing, in particular, that is a market that is a lot more sensitive to macro. However, we do have certain areas of very strong growth, such as electric vehicles. So our [stock] market's growing at a 15% CAGR. The medical device market is turning around, that's growing also fairly well. So we've got some really big bright spots within precision manufacturing. And I think Chris covered the display question earlier.

精密製造業尤其如此，這個市場對宏觀經濟情勢較為敏感。不過，我們也有一些成長非常強勁的領域，例如電動車。因此，我們的股市正以15%的複合年增長率成長。醫療器材市場正在復甦，成長勢頭也相當不錯。所以，精密製造業領域確實有一些非常亮眼的亮點。我想克里斯之前已經談到顯示器的問題了。

Do you want to add anything to that, Chris?

克里斯，你還有什麼要補充的嗎？

Yes. I would say that semiconductor capital equipment inspection is also showing growth. It remains strong. Our customers continue to pull. And a strong backlog there.

是的。我認為半導體設備檢測業務也在成長，而且依然強勁。我們的客戶需求持續旺盛，訂單積壓也很充足。

Okay. Great. That's helpful. My follow-up question, I just want to follow up on the silicon carbide. You call out the near-term demand for silicon carbide business remains pretty robust. But recent data points from the industry seems to be more mixed in the past few weeks, with demand for EVs may be slowing down a little bit. Can you give us a sense of what you are seeing in terms of demand? Is that you are doing better than others because you're gaining share? And also interested to see how the pricing side of things are. Are you seeing more competition in terms of prices?

好的，太好了，這很有幫助。我的後續問題是關於碳化矽的。您提到碳化矽業務的短期需求依然強勁。但最近幾週，產業數據似乎喜憂參半，電動車的需求可能略有放緩。您能否談談您觀察到的需求情況？您是否因為市場佔有率的成長而表現優於其他公司？另外，我也想了解定價方面的狀況。您是否感受到價格上的競爭加劇了？

Thank you, Sidney.

謝謝你，西德尼。

Okay. Sidney, that you have to look at the market, not by a one-quarter basis because this is a market which is on a growth trajectory. And it is going to continue to grow at close to 30% compounded growth rate over the next 5 to 10 years. So one announcement of one vendor pushing in and out does not define the market. Overall, market strength is there, and the market adoption is there. And yes, when you have the growth and many players are coming in, that there will be price pressure. It is normal, natural in any growth market, but we see a strong growth and a very good traction with very large customers with the long-term agreements in place.

好的，西德尼，你需要從整體上看待市場，而不是只關註一個季度的數據，因為這是一個正處於成長期的市場。未來5到10年，它將以接近30%的複合成長率持續成長。因此，一家供應商的進出公告並不能代表整個市場。整體而言，市場實力雄厚，市場接受度也很高。沒錯，當市場成長迅速，眾多參與者湧入時，價格壓力在所難免。這在任何成長型市場都是正常現象，但我們看到市場成長強勁，並且與一些大型客戶簽訂了長期協議，取得了非常好的市場認可度。

Our next question comes from Vivek Arya with Bank of America.

下一個問題來自美國銀行的維韋克·阿亞。

This is Blake Friedman on for Vivek. I wanted to go back to your AI opportunity. I know one of your competitors recently made an acquisition to enter the AI Datacom transceiver space. First, I was hoping you can provide any clarity on the margin generated from higher-speed AI-related transceiver products, and if you think this growing competition also creates any pricing risk in the market.

這裡是布萊克‧弗里德曼，我是維韋克的記者。我想再談談您之前提到的人工智慧機會。我知道您的一個競爭對手最近收購了一家公司，進軍人工智慧資料通訊收發器領域。首先，我希望您能詳細說明高速人工智慧相關收發器產品的利潤率，以及您認為日益激烈的競爭是否會為市場帶來任何定價風險。

Thanks for the question. First of all, the -- clearly, this validates the investment thesis we had for the acquisition of Finisar years ago. So we had that vision, which is now -- you can see it was a pretty good one. And then reinforces, right, it's an endorsement. It reinforces the strength of the market that we are witness today and the upside potential that we all see.

感謝您的提問。首先，很顯然，這驗證了我們多年前收購Finisar的投資邏輯。我們當時的願景，現在看來，確實非常正確。這進一步印證了這一點，也是一種認可。它強化了我們今天所看到的強勁市場勢頭，以及我們都看到的上漲潛力。

I think the -- generally speaking, from vertical integration, scale, and technology differentiation, we are still the market leaders, and that explains why we see the funnel, the pipeline for new engagements around 800G increasing daily in the sense that we believe that we have an opportunity that maybe we have not considered in the recent past to penetrate hyperscalers, where we have been historically not as strong as we would have liked to be.

我認為，總的來說，從垂直整合、規模和技術差異化來看，我們仍然是市場領導者，這也解釋了為什麼我們看到 800G 左右的新合作項目管道每天都在增加，因為我們相信我們有機會打入超大規模資料中心市場，而我們在這個市場一直以來都不夠強大。

And so generally speaking, the competitiveness of the landscape is there. I think we welcome competition. And I think we are very well positioned with the three attributes, which I mentioned, to compete and continue to grow and take advantage of the -- again, as I said, of the strategy, which we deployed years ago when we identified AI on demand as being a key driver for the growth of our business.

總的來說，市場競爭確實存在。我認為我們歡迎競爭。而且我認為，憑藉我剛才提到的三大優勢，我們已經佔據了非常有利的地位，能夠參與競爭並持續發展，充分利用——正如我之前所說——我們多年前製定的戰略，當時我們就認定按需人工智能是我們業務增長的關鍵驅動力。

Got it. And then just as a follow-up on the silicon carbide side. I know there's certainly a supply-demand imbalance in the market. Just trying to get your thoughts around kind of as there's more device vendors in the market who are kind of bringing the kind of materials production in-house. How we should think about the growth opportunities for Coherent and I guess, your thoughts on the relative growth in the materials market versus the device market longer-term.

明白了。關於碳化矽方面，我還有個後續問題。我知道目前市場供需確實存在失衡。我想了解一下，隨著越來越多的裝置供應商開始自主生產這類材料，我們該如何看待Coherent的成長機會？另外，您認為從長遠來看，材料市場和裝置市場的相對成長前景如何？

Okay. Thanks for your question. Sohail.

好的。謝謝你的提問。索海爾。

Yes. The -- we see a demand on both ends that even you said there are lots of suppliers in the device side, people are still looking for a good MOSFET. A MOSFET which will be rugged. A MOSFET which will have high reliability. And a MOSFET which can address the future needs, which are getting more and more integration and the amount of current and power you can handle. So we see a very strong demand on the device side from our customer engagement. And then on the materials side, that we see a very strong demand for 200 millimeter. And in 200 millimeter, there are very few limited choices. And as you know, we were the first one to introduce the 200 product to the marketplace. So we feel pretty good about it. Yes, there is competition, but competition reaffirms that there is a strong demand for it.

是的。我們看到兩端都有需求，正如您所說，裝置方面有很多供應商，但人們仍在尋找一款優秀的 MOSFET。一款堅固耐用、可靠性高，並且能夠滿足未來需求的 MOSFET，這些需求正朝著更高的整合度、更大的電流和功率處理能力發展。因此，我們從與客戶的互動中看到了裝置方面非常強勁的需求。而在材料方面，我們也看到 200 毫米裝置的強勁需求。 200 毫米裝置的選擇非常有限。如您所知，我們是首家將 200 毫米裝置推向市場的公司。所以我們對此感到非常滿意。是的，競爭確實存在，但競爭也正好證明了市場對這種裝置的強勁需求。

Our next question comes from Christopher Rolland with Susquehanna.

下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

Congrats on the results and guidance. I guess my question is around backlog, so that's now increased two quarters in a row. Is this a sign you guys think of the bottom? Does this means we can grow revenue each quarter as we move through next year? Or are there some decent timing and fulfillment issues here in this backlog that would disturb that kind of linear pattern?

恭喜你們所取得的業績和指導意見。我想問的是關於積壓訂單的問題，積壓訂單已經連續兩季成長了。這是否意味著你們認為市場已經觸底反彈？這是否意味著我們明年每季都能實現營收成長？或者說，積壓訂單中是否存在一些時間安排和交付方面的問題，會打破這種線性成長的趨勢？

Okay. Thanks a lot, Chris. Chris, I'm going to ask Magnus just to make a general comment about the overall pulse from the marketplace as he sees it from the point of view of the demand, and we'll see if there's a follow-up.

好的。非常感謝，克里斯。克里斯，我打算請馬格努斯就市場整體需求發表一下看法，看看他有什麼後續反應。

Chris, I appreciate the question. So let me just talk a little bit about the customer engagement perhaps. I would say that customer engagement is really robust, and we see orders continuing to grow across the end market. Customers today, there's certainly the inventory digestion issues we mentioned with some of our end markets, but customers are really focused on innovation. And so the design win funnel, the outlook that we have, looks very robust across most of our markets. So we would expect that trend to continue.

克里斯，感謝你的提問。那麼，我想就客戶互動方面談談我的看法。我認為客戶互動非常活躍，我們看到終端市場的訂單持續成長。當然，正如我們之前提到的，一些終端市場確實存在庫存消化方面的問題，但客戶目前非常關注創新。因此，就我們目前所看到的市場前景而言，大多數市場的訂單轉換率都非常高。我們預計這一趨勢將會持續下去。

Great. Perhaps as a follow-up to someone else's question, did you guys get to take a look at the Cloud Light deal? Or did you guys get to look at the Intel sipho sale to Jabil? And were any of these deals interested -- interesting or perhaps, in your opinion, threatening in any way either?

太好了。或許可以作為其他人問題的補充，你們有沒有關注Cloud Light的交易？或者你們有沒有關注英特爾將Sipho賣給捷普的交易？這些交易中有哪一筆讓你們感興趣──是感興趣，還是說，在你們看來，有任何威脅？

Okay, Chris. Giovanni, do you want to take that?

好的，克里斯。喬瓦尼，你想接嗎？

Yes, sure. Thanks for the question. No, we were not engaged -- we don't need pretty much a contract manufacturer to be added to our existing manufacturing lines. So we believe that -- as I said earlier, we welcome the competition. We think it's -- the combination will definitely be a strong competitor, so we endorse that. But as I said earlier, it's also an endorsement to our strategy, which we deployed years ago, to be in this market at this time, be the leader with the larger scale and the largest -- broadest portfolio of differentiated components and subassemblies for -- to serve this market.

是的，當然。謝謝你的提問。不，我們並沒有參與——我們不需要將代工製造商添加到我們現有的生產線中。所以，正如我之前所說，我們歡迎競爭。我們認為，合併後的公司肯定會成為強大的競爭對手，所以我們支持這種競爭。但正如我之前所說，這也印證了我們多年前製定的策略：在這個市場，在這個時間點，成為擁有最大規模和最廣泛的差異化零件及子組件產品組合的領導者，服務於這個市場。

Our next question comes from Tom O'Malley with Barclays.

下一個問題來自巴克萊銀行的湯姆·奧馬利。

I just had one on the segments. So in your $4.6 billion guide for the year, could you give us a little more color on what you expect the comm business to do? And then more specifically within the comm business, what you're expecting the Telecom business to do and what the Datacom business will do? I ask because there's obviously some big movements inside of the Telecom and Datacom business, but I'm just trying to get a little better feel for what you guys expect for growth throughout the year.

我剛剛問了一個關於業務板塊的問題。在你們46億美元的年度業績預期中，能否更詳細地介紹一下你們對通訊業務的預期？更具體地說，在通訊業務內部，你們對電信業務和數據通訊業務的預期又是什麼？我這麼問是因為電信和數據通訊業務內部顯然有一些重大變化，但我只是想更清楚地了解你們對全年成長的預期。

Okay. Tom, we're not going to give business unit guidance. And I think Rich can just make a general overall comment. I think at the midpoint, we're up 11% in the second half compared to the first half. There's some puts and takes across the segments. Do you want to say anything else, Rich, about it?

好的。湯姆，我們不打算給予各業務部門的績效指引。我想里奇可以簡單概括一下。我認為，下半年業績比上半年成長了11%。各個業務板塊的情況各有不同。里奇，你還有什麼要補充的嗎？

No, that's right on.

沒錯，就是這樣。

Okay. And if you have any specific questions about the Telecom market, Beck can take it, but we're not -- he's not going to give you guidance in the second half of the year.

好的。如果您對電信市場有任何具體問題，貝克可以解答，但是我們—他不會在下半年為您提供指導。

Sure. I guess just the trend looks as though the high-speed Datacom business looks as though it's the big driver of growth. Could you talk about -- historically, you guys have said that within your comm business, the transceiver business is below corporate gross margins. In these new products, particularly in 800G, are you seeing accretive gross margins with those new higher-speed products? Or are those still below corporate gross margin?

當然。我猜目前的趨勢表明，高速數據通訊業務似乎是成長的主要驅動力。您能否談談－從歷史數據來看，你們曾表示，在通訊業務中，收發器業務的毛利率低於公司整體毛利率。在這些新產品中，尤其是在800G領域，您是否看到這些高速新產品的毛利率有所提升？還是仍低於公司整體毛利率？

Okay. It's a good question. Well, Rich will take it. But I would say, at the launch point with all the things that we have going on, where we're at today, we're driving to improve, is just a general comment for the company. We have lots of flywheels turning inside the company all the way from the front-end fabs, where we're still adding capacity to be able to keep pace, not with FY '24 demand, although that's a challenge because it keeps going up, but especially because we believe FY '25 is going to be that much more exciting. Rich, make a general comment about margins, if you would.

好的，這是個好問題。那就讓Rich來回答吧。不過我想說的是，就我們目前的情況而言，考慮到我們正在進行的所有工作，以及我們今天所處的階段，我們正在努力改進，這只是對公司整體情況的總體評價。我們公司內部有很多專案都在積極推進，從前端製造廠到其他各個環節，我們都在不斷擴大產能，以滿足不斷增長的需求，雖然這並非完全是2024財年的需求，但我們相信2025財年將會更加令人振奮。 Rich，請你談談利潤率方面的情況吧。

Sure. So on the margins, the average is about where we are at as a company. And -- but we fully expect, as we go through the learning curve, that the margins will increase going forward.

當然。所以從利潤率來看，我們公司目前的水準基本上符合平均水準。而且——但我們完全預期，隨著我們不斷學習和進步，利潤率未來會繼續提高。

Our next question comes from Mark Miller with the Benchmark Company.

我們的下一個問題來自 Benchmark 公司的 Mark Miller。

Just wanted to pursue a little more. From your guidance, it looks like you're projecting improvements in margins going forward. You listed several things in your letter to shareholders. Is that being driven by higher revenues? I guess I have a similar concern about transceivers in terms of the -- they being accretive to overall margins, especially when you're seeing strong growth there. So I'm just wondering what's driving the expectations for higher margins. Is it just higher sales or mix?

我只是想再深入探討一下。根據您的指示，您似乎預計未來利潤率會有所提高。您在致股東的信中列舉了一些因素。這是否主要受營收成長的推動？我也有類似的擔憂，關於收發器業務能否提升整體利潤率，尤其是在該業務成長強勁的情況下。所以我想知道，是什麼因素促成了對更高利潤率的預期？只是更高的銷售額還是產品組合的變化？

Mark, I'll take that. This is Rich. Thank you. So as I mentioned before, our ongoing cost reductions, including our synergy and restructuring plans and higher volume, as noted in our guidance, better mix of products on higher-margin products as we move forward throughout '24, and our long-term continued leverage of our NPI. Anything that we can also get from our vertical integration will drive margin improvement, we'll be implementing that as well.

馬克，我來接。我是里奇。謝謝。正如我之前提到的，我們正在持續削減成本，包括協同效應和重組計劃，以及提高銷量（正如我們的業績指引中所述），隨著2024年全年業績的推進，我們將優化產品組合，增加高利潤產品，並長期持續利用新產品上市（NPI）。此外，任何能夠從垂直整合中獲得的收益都將有助於提高利潤率，我們也將落實這些措施。

Last question is the data centers, a couple of firms like again, Western Digital, are finally saying they're seeing light at the end of the tunnel which -- with their data center customers. I'm just wondering what you're seeing in terms of data center business.

最後一個問題是關於資料中心的。像西部數據這樣的幾家公司終於表示，他們看到了隧道盡頭的曙光——這主要指的是他們的資料中心客戶。我想知道您對資料中心業務的看法。

Sanjai, do you want to just...

桑傑，你只想…

Sure. So within our Datacom business, there are two drivers, the biggest one today is AI which is growing at a 47% CAGR. Our traditional non-AI business, if you will, is growing as a slower clip. But together, it's still -- the market is still continuing to grow at a 20% CAGR long-term. So we are pretty excited about that market.

當然。在我們的數據通訊業務中，有兩個驅動因素，目前最大的驅動因素是人工智慧，其複合年增長率高達 47%。我們傳統的非人工智慧業務成長速度相對較慢。但總體而言，市場仍將以 20% 的長期複合年增長率持續成長。因此，我們對這個市場感到非常興奮。

Our next question comes from Ananda Baruah with Loop Capital.

我們的下一個問題來自 Loop Capital 的 Ananda Baruah。

Chuck, I guess just sticking on transceivers, and the higher speeds, do you have any sense if you're positioned -- I guess, how you're positioned from a share perspective going forward? Would you expect to -- I guess, any view on expectations to maintain share going forward, gain share going forward? Any context there would be helpful. And then I have a quick follow-up.

查克，我猜你只專注在收發器和更高的速度，你覺得你們目前的市場地位如何？ ——我是說，從市佔率的角度來看，你們未來的市場地位如何？你預計——我猜，對於維持市場份額還是擴大市場份額，你有什麼看法？任何相關的背景資訊都會很有幫助。我還有一個後續問題。

I believe that we're in a great position. I believe that if you look even beyond 800G, given the portfolio that we have of products coming through the funnel, that we're going to be able to continue to not only maintain that position, but we're counting on growing it.

我相信我們處於非常有利的地位。我相信，即使放眼800G之後，考慮到我們目前正在推向市場的產品組合，我們不僅能夠繼續保持這一地位，而且我們還期望能夠進一步擴大這一地位。

And are you guys seeing -- just given all the activity in AI, are you seeing any greater urgency from your engagement around 1.6T? You've given a lot of great context actually this calendar year with regards to sort of timeline, Industry 1.6T adoption. You made reference, I think, in the slides today to 3.2T. Any urgent -- any greater urgency there given what's going on in AI? And any context around your kind of market positioning with regards to that? And that's it for me.

鑑於人工智慧領域的蓬勃發展，你們是否覺得圍繞1.6兆美元的應用需求更加迫切？今年你們已經就產業1.6兆美元的普及時間表做了許多很好的闡述。我記得你們在今天的幻燈片中也提到了3.2兆美元。考慮到人工智慧的現狀，你們覺得3.2兆美元的應用需求是否更加迫切？你們的市場定位對此有何看法？我的問題就這些。

Okay. Thanks, Ananda. Sanjai?

好的。謝謝你，阿南達。桑傑？

Yes, Thanks, Ananda, for the question. So one thing is very clear. With AI, we need to go higher and higher speeds, and we need -- it needs to happen earlier. We are making great progress towards our 1.6T. We believe that we'll be one of the first ones out there. And in terms of timing, we're looking at -- we think the market will be trying to inflect in 1.6T around fiscal '25. And I just want to say, we've got all the key enabling blocks, especially the DFB Mach-Zehnder laser, which is a 200G laser that we demonstrated at ECOC. So we're making good progress there.

是的，謝謝Ananda的提問。有一點非常明確：人工智慧的發展需要不斷提升速度，而且速度必須更快。我們在實現1.6T目標方面取得了巨大進展。我們相信我們將成為首批實現這一目標的公司之一。至於時間安排，我們認為市場將在2025財年左右轉向1.6T。我想說的是，我們已經擁有所有關鍵的使能模組，特別是DFB馬赫-曾德爾雷射器，這是一款我們在ECOC上展示的200G雷射。因此，我們在該領域取得了良好的進展。

Next question comes from Dave Kang with B. Riley.

下一個問題來自 Dave Kang 和 B. Riley。

Just regarding your Datacom mix, I was wondering if you can provide by what the mix was between 100 gig, 400 gig, 800 gig?

關於您的數據通訊組合，我想請問您能否提供一下100G、400G、800G三種規格的具體比例？

Should I?

我應該嗎？

Yes, please Sanjai.

是的，謝謝桑傑。

So the high-speed, which we define as 200G and above, was 70% of the revenues last quarter.

因此，高速網路（我們定義為 200G 及以上）在上個季度佔收入的 70%。

So I assume the remaining 30% is 100 gig and below. How should we think about -- I mean, first of all, are they growing? And what do you think their runway is? And how should we think about pending decay eventually?

所以我假設剩下的30%是100GB及以下的儲存設備。我們該如何看待這些問題——首先，它們還在成長嗎？你認為它們還能維持多久？我們又該如何看待它們最終可能出現的衰退？

Yes. I mean the slower speeds are typically today non-AI-related, -- so they're not growing as fast as 800G and even some parts of 400G. But long-term, we still believe those speeds are still going to continue to grow, especially as it kind of moves towards the edge of the networks.

是的。我的意思是，目前速度較慢的傳輸速度通常與人工智慧無關，因此它們的成長速度不如 800G，甚至不如 400G 的某些部分。但從長遠來看，我們仍然相信這些速度會繼續增長，尤其是在它們向網路邊緣擴展的過程中。

Got it. And my follow-up is regarding your CapEx. How should we think about CapEx for this fiscal year? And then fiscal '25 after you get that $1 billion investment from -- two Japanese companies, how will that drop off in '25 after silicon carbide investments?

明白了。我的後續問題是關於你們的資本支出。我們該如何看待本財年的資本支出？還有，在你們獲得兩家日本公司10億美元的投資後，2025財年碳化矽投資的支出會如何下降？

Okay. Two great questions, Dave. Rich, will you take those?

好的。戴夫，這兩個問題問得很好。里奇，你來回答吧？

Yes. So as of right now, we're still holding to the full-year guidance that we previously gave of $350 million to $400 million for FY '24. On the silicon carbide for FY '25, obviously, the investment will offset our -- what we thought we were going to invest in '25.

是的。所以目前，我們仍堅持先前給予的2024財年全年業績指引，即3.5億美元至4億美元。至於2025財年的碳化矽投資，顯然，這筆投資將抵銷我們原先計劃在2025年進行的投資。

Dave, when we -- when we close, we will run through in that next quarter revisions to our guidance. And in the quarter -- in the reporting quarter after the close, we'll update and give a strong sense for what we see both for '24 and give at least a glimpse of '25, okay?

戴夫，等我們——等我們完成交易後，我們會在下一季公佈我們對業績指引的修訂。在交易結束後的那個季度——也就是報告季度，我們會更新並明確我們對2024年的預期，並至少對2025年的情況進行一些展望，好嗎？

Our next question comes from Tim Savageaux with Northland Capital Markets.

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

A couple of math questions here. I think with some significant implications maybe. First one is on kind of results and guide Telecom versus Datacom. And I think the anecdotal commentary is about inventory digestion in the cloud side. But if you look at how that's proceeding, it seems like most of the weakness sequentially was in telecom, going from 40% to 29% on a declining number. So are we talking order book versus revenues when we're talking about those comments, or am I looking at that right? And as you look at the guide, is most of that sequential growth, about $75 million, is that in comms? And is that some AI starting to ship or telecom bouncing back? Or how would we characterize that? And I have a follow-up.

這裡有幾個數學問題，我覺得可能有些重要意義。第一個問題是關於電信和數據通訊的績效和指導方針。我認為相關的評論是關於雲端業務的庫存消化。但如果你觀察實際情況，似乎大部分疲軟都集中在電信領域，佔比從40%下降到29%，而且這個數字還在下降。所以，我們討論這些評論時，指的是訂單量還是收入？我的理解對嗎？另外，從指導方針來看，大約7500萬美元的環比成長，大部分來自通訊領域嗎？是人工智慧開始交付，還是電信業務反彈？我們該如何描述這部分成長？我還有一個後續問題。

Okay. Well, I think there's really two questions. Beck will take the one that's market related and Rich will take the finance.

好的。我想實際上有兩個問題。貝克會回答與市場相關的問題，里奇會回答與金融相關的問題。

Sure. I mean on the telecom side, we see that growing modestly this quarter and we see double-digit growth recovery in the second half of this fiscal year for our telecom revenues, right? And I can comment on the ratio, that was relative to the revenue last quarter.

當然。我的意思是，就電信業務而言，我們看到本季略有成長，而且我們預計本財年下半年電信收入將實現兩位數成長，對吧？關於這個比率，我可以解釋一下，它是相對於上個季度的收入而言的。

Exactly. Okay. Tim, would you repeat the second part of your question for Rich?

沒錯。好的。提姆，你能把你的問題的第二部分再說一次給里奇聽嗎？

Let me go on to the third part. And of course, there's a rich history of multipart questions here with numbers on this call. But -- and that is -- the overall question I'm going to ask is, what is the absolute size of your AI backlog? But I'm going to try and get there in a couple of parts, which is, you talked about an order increase last quarter that was entirely networking-driven, 30%. That seems like it's $300 million. There's some commentary here on the call about despite orders coming down, the AI backlog going up 200%. So I'm going to give you a chance here just to give us a number for what you got in backlog that you would consider AI, whether that's all 800 gig or not?

接下來是第三部分。當然，這次電話會議中有很多涉及數字的多部分問題。但是——也就是——我要問的總體問題是，你們人工智慧積壓訂單的絕對規模是多少？我會分幾個部分來問。您提到上個季度訂單成長了30%，這完全是由網路業務驅動的，金額似乎達到了3億美元。電話會議上有人提到，儘管訂單量有所下降，但人工智慧積壓訂單卻增加了200%。所以我想請您具體說明一下，你們積壓訂單中有多少是人工智慧相關的，無論是否都是800GB？

Yes. I don't think we can give you that. What I can tell you is it's a substantial and meaningfully material one. But I'm not going to give you the number.

是的，恐怕我們無法給出確切數字。但我可以告訴你，這是一筆數額龐大且意義重大的款項。不過，我不會透露具體金額。

Our next question comes from Jim Ricchiuti with Needham Company.

我們的下一個問題來自 Needham 公司的 Jim Ricchiuti。

So you seem to be suggesting some recovery in the second half on both the OLED side and the WFE side of the business. The OLED side, I think we understand what's happening with service utilization going up. What's your line of sight in terms of deployment of new Excimer laser tools in the second half of fiscal '24, as well as your line of sight on the WFE improvement in the second half?

所以您似乎暗示OLED和WFE業務在下半年都會有所復甦。關於OLED業務，我認為我們已經了解了服務利用率上升的原因。您對2024財年下半年新型準分子雷射設備的部署有何展望？您對下半年WFE業務的改進又有何展望？

Yes. As you mentioned, service utilization uptick in the excimer business for display in the near-term. In the long-term, the principal movements in the display market will be around the adoption of OLED technology in laptops, in tablets, in IT panels. And we're engaging with customers on Gen 8 investments. The timing of those Gen 8 investments should be clear early calendar year '25. And we'll be well positioned to work with our customers on the expansion of OLED capacity for tablets and for laptops, which would be incremental to our current business.

是的。正如您所提到的，短期內準分子顯示器業務的服務利用率將會上升。從長遠來看，顯示器市場的主要發展趨勢將圍繞著筆記型電腦、平板電腦和IT面板中OLED技術的應用。我們正在與客戶洽談第八代OLED技術的投資。這些投資的具體時間預計將在2025年初確定。屆時，我們將能夠更好地與客戶合作，擴大平板電腦和筆記型電腦的OLED產能，這將為我們目前的業務帶來成長。

We've developed solid-state technology in line with the challenges of maintaining a sensible cost level for those larger OLED panels. And in the long-term, we see a migration for TVs into the microLED market, which we're investing heavily in developing new tools for.

我們已開發出固態技術，以應對在大尺寸OLED面板中保持合理成本的挑戰。從長遠來看，我們預期電視市場將向microLED市場轉型，為此我們正在大力投資開發新的相關工具。

Jim, did you have a second one...

吉姆，你還有第二個嗎？

Yes. Yes. The other question was just -- and maybe I'll just group this into one last question as on the balance of that laser and industrial business. It sounds like you're feeling relatively positive about the WFE portion of the business. Back-end semi, is that going to continue to be relatively weak? And are you assuming -- looking at precision manufacturing beyond the current quarter that the recovery there is still fairly uncertain. Is that a good way to characterize the outlook for this part of the business?

是的。是的。另一個問題是──或許我可以把這些問題合併成最後一個問題，關於雷射和工業業務的整體情況。聽起來您對WFE（雷射前端）業務部分比較樂觀。後端半導體業務，它會繼續保持相對疲軟的狀態嗎？展望精密製造業務，您是否認為其復甦前景仍相當不明朗？這樣描述這部分業務的前景是否恰當？

Yes. Front-end semi remains strong. The reasons for that are that the customer relationship in the front-end semi market is a long-term roadmap. We engage -- we partner with our customers in terms of developing that long-term roadmap. We develop lasers specifically for our partners in that area. And it's more than a sale. The relationship lasts for 20 years in terms of one particular laser technology. The service component of the semicap business is very significant. And so we know this a long-term journey, which gives us more certainty in the service business of the emergence of the semicap inspection market. So we get a great deal of visibility to our customers on that.

是的。前端半導體市場依然強勁。原因在於，前端半導體市場的客戶關係是長期發展計畫。我們與客戶攜手合作，共同製定此長期發展規劃。我們專門為該領域的合作夥伴開發雷射。這不僅僅是銷售。就某項特定的雷射技術而言，這種合作關係可以持續20年。半導體業務的服務部分非常重要。因此，我們深知這是一項長期事業，這讓我們對半導體檢測市場新興的服務業務更有把握。因此，我們能夠為客戶提供更清晰的指導。

In terms of back end, it is softer. The recovery is taking longer. Potentially the end of the fiscal year to see any change there. And in precision manufacturing, PMI, as Magnus mentioned before, there's -- the recovery is around the end of the year. But all of that, the precision manufacturing in the back-end semi is offset by the strength in display and the strength in semiconductor capital equipment wafer inspection.

後端半導體產業表現疲軟，復甦進程較為緩慢，可能要到財政年度結束才能看到明顯改善。正如Magnus先前所提到的，精密製造業採購經理人指數（PMI）的復甦也預計在年底左右。但所有這些不利因素，包括後端半導體精密製造業的疲軟，都被顯示器和半導體晶圓檢測設備產業的強勁表現所抵消。

I'm not showing any further questions at this time. I'd like to turn the call back over to our host for any closing remarks.

我目前不再回答任何問題。現在我想把電話交還給主持人，請他做總結發言。

Kevin, thank you. And I want to thank all the analysts on the call for your thoughtful questions. As always, if we could be of any help throughout the quarter, please feel free to reach out. And I want to thank everybody for joining us this morning. Thank you.

凱文，謝謝你。我也要感謝所有參加電話會議的分析師，感謝你們提出的寶貴問題。和以往一樣，如果本季我們需要任何幫助，請隨時與我們聯繫。感謝今天早上所有參加會議的各位。謝謝。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您可以斷開連接，祝您有美好的一天。