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Operator
Operator
Ladies and gentlemen, thank you for standing by. (Operator Instructions)
女士們、先生們,感謝你們的支持。 (操作員指令)
I would like to turn the conference over to Dan O'Neil. Please go ahead, sir.
我想將會議交給丹·奧尼爾。先生,請繼續。
Daniel J. O'Neil - VP of Corporate Development & IR
Daniel J. O'Neil - VP of Corporate Development & IR
Good afternoon, and thank you all for joining us today for our Fiscal 2022 Fourth Quarter and Year-end Earnings Call. Joining me today from Credo are Bill Brennan, our Chief Executive Officer; and Dan Fleming, our Chief Financial Officer.
下午好,感謝大家今天參加我們的 2022 財年第四季和年終財報電話會議。今天與我一起出席 Credo 活動的是我們的執行長 Bill Brennan;以及我們的財務長丹·弗萊明(Dan Fleming)。
I'd like to remind everyone that certain comments made in this call today may include forward-looking statements regarding expected future results, strategies and plans, future operations, the markets in which we operate and other areas of discussion. These forward-looking statements are subject to risks and uncertainties that are discussed in detail in our documents filed with the SEC. It's not possible for the company's management to predict all risks nor can the company assess the impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement.
我想提醒大家,今天電話會議上提出的某些評論可能包括關於預期未來結果、策略和計劃、未來營運、我們營運的市場和其他討論領域的前瞻性陳述。這些前瞻性陳述受到我們向美國證券交易委員會提交的文件中詳細討論的風險和不確定性的影響。公司管理階層不可能預測所有風險,也無法評估所有因素對其業務的影響,或任何因素或因素組合可能導致實際結果與任何前瞻性聲明中的結果有重大差異的程度。
In light of these risks, uncertainties and assumptions, the forward-looking events discussed during this call may not occur, and actual results could differ materially and adversely from those anticipated or implied. The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of this call to conform these statements to actual results or to changes in the company's expectations except as required by law.
鑑於這些風險、不確定性和假設,本次電話會議中討論的前瞻性事件可能不會發生,實際結果可能與預期或暗示的結果有重大不利差異。除非法律另有規定,否則本公司不承擔在本次電話會議召開之日後以任何理由公開更新前瞻性陳述的義務,以使這些陳述符合實際結果或公司預期的變化。
Also, during this call, we will refer to certain non-GAAP financial measures, which we consider to be an important measure of the company's performance. These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to financial performance prepared in accordance with U.S. GAAP. A discussion of why we use non-GAAP financial measures and reconciliations between our GAAP and non-GAAP financial measures is available in the earnings release we issued today as well as in our SEC filings, which can all be accessed using the investor relations portion of our website.
此外,在本次電話會議中,我們將參考某些非 GAAP 財務指標,我們認為這些指標是衡量公司績效的重要指標。這些非公認會計準則財務指標是根據美國公認會計準則編制的財務績效的補充,而非替代或優於根據美國公認會計準則編制的財務績效。有關我們為何使用非 GAAP 財務指標以及 GAAP 和非 GAAP 財務指標之間的調節表的討論,可在我們今天發布的收益報告以及我們向美國證券交易委員會 (SEC) 提交的文件中查閱,這些文件均可透過我們網站的投資者關係部分查閱。
With that, I'll now turn the call over to our CEO. Bill?
說完這些,我現在將電話轉給我們的執行長。帳單?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Thanks, Dan, and thank you all for joining our call. During this call, I'll provide an overview of our Q4 and fiscal '22 accomplishments and then share why we're optimistic about continued strong growth in fiscal '23. After my remarks, our Chief Financial Officer, Dan Fleming, will provide a more in-depth review of our fourth quarter and full year results. And we'll then be happy to take questions.
謝謝,丹,也謝謝大家參加我們的電話會議。在這次電話會議中,我將概述我們第四季度和 22 財年的業績,然後分享我們對 23 財年繼續強勁增長持樂觀態度的原因。在我發言之後,我們的財務長 Dan Fleming 將對我們的第四季度和全年業績進行更深入的回顧。然後我們很樂意回答問題。
While we faced some challenges in April, fiscal '22 was, in total, another great year for Credo. Notably, due to the tremendous work of our team partners, we became a public company on January 27. Our IPO has provided us with more than ample capital to support the investments required to deliver the leading products of fast-growing markets demand. Our IPO not only bolstered our liquidity but solidified our path as an independent company, both of which enhanced our relationships with our customers and supply chain partners.
儘管我們在四月面臨一些挑戰,但總體而言,22財年對Credo來說又是偉大的一年。值得注意的是,由於我們團隊合作夥伴的辛勤工作,我們於 1 月 27 日成為一家上市公司。 我們的 IPO 為我們提供了充足的資金,以支持提供快速增長的市場需求的領先產品所需的投資。我們的首次公開募股不僅增強了我們的流動性,而且鞏固了我們作為一家獨立公司的道路,這兩者都增強了我們與客戶和供應鏈合作夥伴的關係。
During fiscal '22, we achieved record revenue of $106.5 million, up more than 80% from the prior year. That total included product growth of 120%. We achieved revenue growth in all our Ethernet product lines, including ADCs, optical DSPs, Line Card PHYs and SerDes chiplets, and we also achieved growth in our IP licensing business. This success is a testament to the hard work of our team and the trust they've earned with our customers.
在22財年,我們實現了創紀錄的1.065億美元的收入,比前一年增長了80%以上。總額包括 120% 的產品成長。我們所有乙太網路產品線的收入均實現了成長,包括 ADC、光學 DSP、線路卡 PHY 和 SerDes 晶片,我們的 IP 授權業務也實現了成長。這一成功證明了我們團隊的辛勤工作以及他們贏得的客戶信任。
Customers choose Credo solutions for several reasons. But at its heart, we differentiate ourselves with our architectural approach. Our advantage truly lies in our engineering. We optimize analog and DSP architectures to deliver low power and very small die sizes. Also, our N-1 process node approach provides an advantage on development cost as well as our wafer cost. These factors, combined with our purpose-built mentality, where we optimized solutions for the many different links we serve, enable us to provide tremendous value to our customers across the entire range of their connectivity applications.
客戶選擇 Credo 解決方案有幾個原因。但從本質上來說,我們透過建築方法使自己與眾不同。我們的優勢確實在於我們的工程。我們優化類比和 DSP 架構,以實現低功耗和非常小的晶片尺寸。此外,我們的 N-1 製程節點方法在開發成本和晶圓成本方面也具有優勢。這些因素,加上我們針對特定目的的思維方式,即為我們服務的許多不同環節優化解決方案,使我們能夠為客戶在其整個連接應用範圍內提供巨大的價值。
Our dedication to engineering optimal system solutions translates to innovations across our product lines and nowhere is this more evident than our Active Electrical Cable or AEC solutions. We've worked closely with hyperscaler customers to understand their core needs and through engineering ingenuity and a customer-first mindset, we've been successful in delivering leading-edge AEC system solutions and effectively, we've pioneered a new high-speed connectivity category.
我們致力於設計最佳系統解決方案,這轉化為我們產品線的創新,而我們的主動電纜或 AEC 解決方案最能體現這一點。我們與超大規模客戶密切合作,了解他們的核心需求,並透過工程創新和客戶至上的理念,成功提供了尖端的 AEC 系統解決方案,並有效地開創了一種新的高速連接類別。
Let me share some of our accomplishments and highlights from the past year across our Ethernet connectivity solutions. Within our AEC solutions, we began ramping at our first hyperscale data center customer. We also deepened our engagements with additional customers, including hyperscalers and several Tier 2 data center operators. Our customer progress has validated the AEC market, and we continue to expect it to grow rapidly.
讓我分享一下過去一年我們在乙太網路連接解決方案方面取得的一些成就和亮點。在我們的 AEC 解決方案中,我們開始在第一個超大規模資料中心客戶處開展業務。我們也加深了與其他客戶的合作,包括超大規模企業和幾家二級資料中心營運商。我們的客戶進步已經驗證了 AEC 市場,我們繼續期待它快速成長。
Fiscal '22 also included notable achievements for the solutions we provide to optical module manufacturers and their end customers. We developed and deepened engagements with several optical module manufacturers and are working closely with them to proliferate our solutions into their data center, 5G carrier and OEM customers. During fiscal '22, we ramped initial production with several optical module customers. And in March, our team attended OFC to meet with customers and partners. It was a great opportunity to meet in person, and it was also a great opportunity to see the strong interest in our optical offerings.
22財年我們為光學模組製造商及其最終客戶提供的解決方案也取得了顯著的成就。我們與多家光學模組製造商建立並深化了合作關係,並與他們密切合作,將我們的解決方案推廣到他們的資料中心、5G 營運商和 OEM 客戶。在22財年,我們與幾家光學模組客戶合作提高了初始產量。三月份,我們的團隊參加了 OFC,與客戶和合作夥伴會面。這是一個面對面交流的好機會,也是一個很好的機會來了解大家對我們的光學產品的濃厚興趣。
Next, let me discuss our Line Card PHY. Data security continues to become more and more important, and we've continued to see a strong adoption of our MACsec solutions that provide data incursion. We also gained traction with our retimer and gearbox solutions, and this was based on our leading power efficiency and cost effectiveness. During fiscal '22, we ramped our Line Card PHY solutions at several new customers, including hyperscalers and leading network OEMs.
接下來,讓我討論一下我們的線路卡PHY。資料安全變得越來越重要,我們也看到提供資料入侵保護的 MACsec 解決方案被廣泛採用。我們的重定時器和變速箱解決方案也獲得了青睞,這是基於我們領先的電源效率和成本效益。在 22 財年,我們向多家新客戶推出了 Line Card PHY 解決方案,其中包括超大規模客戶和領先的網路 OEM。
Lastly, customers continue to seek out our IP for licensing and our SerDes chiplets for ASIC solutions with multichip module packaging. While we are clearly transitioning to a product company, these solutions remain a strategic part of our overall business. In the past year, we had wins with several new and existing IP customers, and we continue to recognize revenue from our IP contract backlog. We also achieved volume production with the first 2 of our SerDes chiplet customers.
最後,客戶繼續尋求我們的 IP 授權和用於具有多晶片模組封裝的 ASIC 解決方案的 SerDes 晶片。雖然我們正在向一家產品公司轉型,但這些解決方案仍然是我們整體業務的策略組成部分。在過去的一年裡,我們贏得了多個新舊 IP 客戶,我們繼續從 IP 合約積壓中獲得收入。我們也與前兩家 SerDes 晶片客戶實現了大量生產。
From a supply chain perspective, we've been navigating the challenges facing the entire electronics industry. As we announced in our 8-K on April 13, one of our key supply chain partners in China was shut down due to COVID lockdown mandates. While we did not face any other supply chain issues, this lockdown limited our ability to deliver to the customer demand we had in Q4, and it impacted our revenue in the quarter. Going forward, we will add geographic diversity to our supply chain strategy. And given the fact that we have good forecast visibility, we will also judiciously build inventory. In fact, with many of our large customers, we have firm backlog that extends to 52 weeks.
從供應鏈角度來看,我們一直在應對整個電子產業面臨的挑戰。正如我們在 4 月 13 日的 8-K 報告中宣布的那樣,我們在中國的一個重要供應鏈合作夥伴因 COVID 封鎖令而關閉。雖然我們沒有遇到任何其他供應鏈問題,但這次封鎖限制了我們滿足第四季客戶需求的能力,並影響了我們本季的營收。展望未來,我們將在我們的供應鏈策略中增加地域多樣性。而且鑑於我們具有良好的預測可見性,我們還將明智地建立庫存。事實上,對於我們的許多大客戶,我們的積壓訂單已長達 52 週。
Despite the supply complexity experienced in April, we delivered record quarterly revenue of $37.5 million, an increase of 18% from last quarter and 90% year-over-year. Given we had strong relative performance on the IP side of our business, we also achieved very good gross margins. There were several key drivers to our record-setting quarter, which included the continued ramp of a NIC to ToR AEC solution at a leading hyperscaler as well as multiple new IP license wins and IP revenue recognition from backlog with an industry leader in the consumer market. We're encouraged as we move into fiscal '23 as we see increasing strength in demand for our solutions as we deepen our customer engagements with industry leaders, including hyperscalers, optical module manufacturers and networking OEMs and ODMs.
儘管 4 月經歷了供應複雜情況,我們仍然實現了創紀錄的 3750 萬美元的季度收入,較上一季增長 18%,同比增長 90%。鑑於我們的知識產權業務表現強勁,我們也實現了非常好的毛利率。我們創下本季業績紀錄的關鍵驅動因素有幾個,其中包括領先的超大規模供應商持續提升 NIC 到 ToR AEC 解決方案,以及贏得多個新的 IP 許可證和從消費市場行業領先者的積壓訂單中獲得 IP 收入確認。隨著我們進入23財年,我們感到很受鼓舞,因為隨著我們深化與行業領導者(包括超大規模製造商、光學模組製造商以及網路 OEM 和 ODM)的客戶合作,我們看到對我們的解決方案的需求日益增強。
As we previously mentioned, we're addressing a large and fast-growing TAM within the high end of the Ethernet connectivity market. Based on industry reports, we believe our overall TAM will exceed $5 billion in the upcoming years. We also believe our emerging solutions for new target markets such as USB and PCIe will add an incremental $3 billion to our TAM. Our team has been working very hard to meet and drive customer demand through continued customer engagement and innovation. The hard work has been paying off, and we have many reasons to be excited about our prospects in fiscal '23 and beyond.
正如我們之前提到的,我們正在解決乙太網路連接市場高端領域中龐大且快速成長的 TAM。根據行業報告,我們相信未來幾年我們的整體 TAM 將超過 50 億美元。我們也相信,我們針對 USB 和 PCIe 等新目標市場的新興解決方案將為我們的 TAM 增加 30 億美元的增量。我們的團隊一直努力透過持續的客戶參與和創新來滿足和推動客戶需求。辛勤工作已獲得回報,我們有許多理由對23財年及以後的前景感到興奮。
Within AEC, we expect to launch a third major program at our first hyperscaler customer during fiscal '23, which is indicative of our strong execution on the first engagements and it's also indicative of the credibility Credo has earned to be trusted with a third key program. Also, we continue to make progress in our AEC engagement with a second hyperscaler customer, and we expect to begin ramping that program in fiscal '23. We are also bullish on the opportunity for 800 gig ports in the future, having already sampled 800 gig AEC solutions to several leading partners. We continue to strongly believe that 800 gig DAC is dead.
在 AEC 領域,我們預計在 23 財年向我們的第一個超大規模客戶啟動第三個主要項目,這表明我們在首次合作中表現強勁,也表明 Credo 贏得了第三個關鍵項目的信任。此外,我們與第二家超大規模客戶的 AEC 合作繼續取得進展,我們預計將在 23 財年開始推進該計劃。我們也看好未來 800 千兆埠的機會,並已向幾家領先的合作夥伴提供了 800 千兆 AEC 解決方案樣品。我們仍然堅信 800G DAC 已經消亡。
Based on customer traction, we also expect the continued ramp of our optical DSP solutions. We continue to work jointly with customers across a variety of applications targeting various hyperscalers. While hyperscalers will remain the most significant customers for optical DSPs, we're encouraged by our products for applications for the 5G infrastructure, PON and fiber channel markets. We're one of the few established leaders in the Line Card PHY market, and we've been very pleased with the growth of this product line, which was driven by the expansion of our customer base of hyperscalers and networking OEMs and ODMs.
根據客戶的吸引力,我們也預期我們的光學 DSP 解決方案將持續成長。我們將繼續與客戶共同合作,開發針對各種超大規模的各種應用程式。雖然超大規模用戶仍將是光學 DSP 的最重要客戶,但我們的產品在 5G 基礎設施、PON 和光纖通道市場的應用讓我們備受鼓舞。我們是線路卡 PHY 市場中為數不多的既定領導者之一,我們對該產品線的成長感到非常滿意,這得益於我們的超大規模和網路 OEM 和 ODM 客戶群的擴大。
Going forward, we believe that we will continue our market leadership for MACsec solutions that provide encryption for the growing number of applications requiring high security. And we expect our retimers and gearbox solutions to continue to gain momentum based on our ability to deliver more power efficient and cost-effective solutions.
展望未來,我們相信我們將繼續在 MACsec 解決方案領域保持市場領先地位,為越來越多需要高安全性的應用程式提供加密服務。我們預計,憑藉我們提供更節能、更具成本效益的解決方案的能力,我們的重定時器和變速箱解決方案將繼續獲得發展動力。
Lastly, some thoughts on our SerDes IP and chiplets, which remain a highly strategic part of our overall business. While our IP business is variable on a quarter-to-quarter basis, we continue to build backlog and maintain a robust pipeline of new opportunities for fiscal '23 and beyond. We're certainly excited to further deepening our relationships with Ethernet customers as well as further engaging leading USB customers.
最後,我對我們的 SerDes IP 和小晶片有一些想法,它們仍然是我們整體業務中高度策略性的一部分。儘管我們的 IP 業務每季都有變化,但我們仍在繼續累積訂單,並為 23 財年及以後保持強勁的新機會管道。我們非常高興能夠進一步加深與乙太網路客戶的關係並進一步吸引領先的 USB 客戶。
Credo's diverse portfolio of low power SerDes IP offers our customers optimal solutions for their needs. Looking forward, our engineering teams are working aggressively on next-generation 800 gig and 1.6 T Ethernet solutions across all of our product and IP offerings. And our expectation is that we will be very well positioned to continue to deliver the same compelling advantages to our customers as these cutting-edge markets ramp in the upcoming years.
Credo 多樣化的低功耗 SerDes IP 產品組合可為我們的客戶提供滿足其需求的最佳解決方案。展望未來,我們的工程團隊正在積極致力於所有產品和 IP 產品的下一代 800G 和 1.6T 乙太網路解決方案。我們的期望是,隨著未來幾年這些前沿市場的發展,我們將處於非常有利的位置,並繼續為我們的客戶提供同樣引人注目的優勢。
Fortunately, customer demand for our solutions continues to look very robust. We had growth in every part of our business in fiscal '22, and we expect the same in fiscal '23. Given the breadth of our solutions, our technical innovation, our operational capabilities, the favorable market trends and ultimately the strong demand from customers, we look forward to another record setting year in fiscal '23, where we expect to achieve at least $200 million in revenue, which would represent growth of more than 88%.
幸運的是,客戶對我們解決方案的需求仍然非常強勁。我們業務的各個部分在 22 財年都實現了成長,我們預計 23 財年也會如此。鑑於我們解決方案的廣度、我們的技術創新、我們的營運能力、良好的市場趨勢以及最終來自客戶的強勁需求,我們期待 23 財年再創紀錄,預計將實現至少 2 億美元的收入,這將代表超過 88% 的成長率。
With that, I'd now like to turn the call over to Dan Fleming, our CFO, to provide more details on our fourth quarter and full fiscal year results as well as to give guidance moving forward.
現在,我想將電話轉給我們的財務長 Dan Fleming,以提供有關我們第四季度和全年業績的更多詳細信息,並提供未來指導。
Daniel Fleming - CFO
Daniel Fleming - CFO
Thank you, Bill, and good afternoon. I will first provide a financial summary of our fiscal year '22, then review our Q4 fiscal '22 results and finally, discuss our outlook for Q1 of fiscal '23. As a reminder, the following financials will be discussed on a non-GAAP basis unless otherwise noted. As Bill mentioned, this past year has been truly transformative for Credo. We have scaled our business considerably and expanded our TAM, thanks to the strong progress made with our AEC product. In addition, we are well capitalized to continue investing in our strong growth trajectory while maintaining a substantial cash buffer in this volatile environment.
謝謝你,比爾,下午好。我將首先提供我們 22 財年的財務摘要,然後回顧我們 22 財年第四季的業績,最後討論我們對 23 財年第一季的展望。提醒一下,除非另有說明,以下財務數據將以非 GAAP 為基礎進行討論。正如比爾所說,過去的一年對 Credo 來說是真正改變的一年。由於 AEC 產品取得了長足進步,我們的業務規模大幅擴大,TAM 也隨之擴大。此外,我們擁有充足的資本,可以繼續投資於強勁的成長軌跡,同時在這種動盪的環境中保持大量的現金緩衝。
I'm pleased to share with you that revenue for fiscal year '22 was a record at $106.5 million, up 81% year-over-year, driven by product revenue that grew by 120%. Gross margin for the year was 60.6% as we continued to gain scale. Our operating margin improved by 11%, even as we dramatically grew our product revenue mix from 63% in fiscal year '21 to 77% in fiscal year '22. This illustrates the leverage we can deliver with our strong top line growth. While product will continue to drive substantial top line growth, IP remains strategically important to us, and this source of high-margin revenue grew 16% for the year, which translated into a $4.1 million improvement in gross profit.
我很高興地與大家分享,22 財年的收入創下了 1.065 億美元的記錄,年增 81%,這得益於產品收入增長 120%。隨著規模不斷擴大,全年毛利率達到60.6%。儘管我們的產品收入結構從 21 財年的 63% 大幅成長至 22 財年的 77%,但我們的營業利潤率仍提高了 11%。這體現了我們能透過強勁的營收成長發揮槓桿作用。雖然產品將繼續推動大幅的營收成長,但智慧財產權對我們來說仍然具有戰略重要性,這個高利潤收入來源今年成長了 16%,這意味著毛利增加了 410 萬美元。
In Q4, we achieved another quarter of record revenue at $37.5 million, up 18% sequentially and up 90% year-over-year. Our sequential growth was largely driven by strong revenue growth of our IP. Our product revenue was $26.4 million for the quarter, while it was flat sequentially, product revenue grew 104% year-over-year. While our Q4 revenue represented strong year-over-year top line growth, this result was at the low end of our guidance range. As we previously disclosed, the product revenue was limited by government COVID lockdown mandates in China, which caused certain disruptions in the manufacturing of some of our products in the fourth quarter. With the lockdown impacting our supplier, we were simply not able to fulfill all demand.
第四季度,我們再次創下季度營收記錄,達到 3,750 萬美元,季增 18%,年增 90%。我們的連續成長主要得益於我們 IP 的強勁收入成長。本季我們的產品營收為 2,640 萬美元,與上一季持平,但年增 104%。儘管我們的第四季度營收同比強勁增長,但這一結果處於我們預期範圍的低端。正如我們之前所揭露的那樣,產品收入受到中國政府 COVID 封鎖要求的限制,這導致第四季度我們部分產品的生產出現一定中斷。由於封鎖影響了我們的供應商,我們根本無法滿足所有需求。
As Bill mentioned, we are taking mitigating actions to ensure we're better positioned to deliver to demand, should we encounter similar issues in the future. Most importantly, we continue to see extraordinary demand across all of our product lines. In fact, we saw each product category, Line Card PHY, optical and AEC grow for the quarter and full year. Additionally, we're pleased to share that we expect this to occur again in fiscal '23, with our product growth being led by a wave of AEC adoption. The fundamental driver of strong HSDC expansion outlook at the highest speeds remains in place in the face of an uncertain economic and geopolitical landscape. So we're thrilled to be well positioned with a leading set of products.
正如比爾所提到的,我們正在採取緩解措施,以確保我們能夠更好地滿足需求,以防將來遇到類似的問題。最重要的是,我們所有產品線的需求持續強勁。事實上,我們看到每個產品類別,線路卡PHY,光學和AEC在本季和全年都有成長。此外,我們很高興地告訴大家,我們預計這種情況將在 23 財年再次發生,我們的產品成長將由 AEC 採用浪潮所引領。儘管經濟和地緣政治形勢不確定,但推動 HSDC 以最高速度強勁擴張的根本動力仍然存在。因此,我們很高興能夠憑藉一系列領先的產品佔據有利地位。
Our first large AEC customer was again much greater than 10% of our revenue and was 30% of revenue for the full year. We expect this customer to remain a large portion of our revenue in the coming quarters as their AEC ramp continues. Our IP business generated $11.1 million of revenue in Q4, up 64% year-over-year. IP will remain a strategic part of our business. But as a reminder, our IP results may vary from quarter-to-quarter, driven largely by specific deliverables to preexisting contracts.
我們的第一個大型 AEC 客戶再次遠遠超過了我們收入的 10%,佔全年收入的 30%。我們預計,隨著該客戶的 AEC 業務持續成長,未來幾季他們仍將是我們收入的很大一部分。我們的 IP 業務在第四季度創造了 1,110 萬美元的收入,年增 64%。 IP仍將是我們業務的策略部分。但需要提醒的是,我們的 IP 結果可能因季度而異,這主要取決於現有合約的特定交付成果。
While the mix of IP and product revenue will fluctuate in any given quarter over time, our revenue mix in Q4 was 30% IP due to strong IP execution. This is above our long-term expectation for IP, which is 10% to 15% of revenue. With a strong IP result this quarter, we delivered gross margin of 63.7%, above the high end of our guidance. This was up 292 basis points sequentially. Our IP gross margin generally hovers near 100%, and our product gross margin was 48.5% in Q4, down 495 basis points sequentially due to a sequential decline in our product engineering services, a high-margin contributor to our product gross margin.
雖然 IP 和產品收入的組合在任何一個季度都會隨著時間而波動,但由於強大的 IP 執行力,我們第四季的收入組合中 30% 為 IP。這高於我們對 IP 的長期預期,佔營收的 10% 至 15%。本季度,憑藉強勁的 IP 業績,我們實現了 63.7% 的毛利率,高於我們預期的高點。這比上一季上漲了 292 個基點。我們的 IP 毛利率一般在 100% 附近徘徊,第四季度產品毛利率為 48.5%,比上一季下降 495 個基點,原因是產品工程服務(產品毛利率的高利潤貢獻者)環比下降。
Total operating expenses in the fourth quarter were $21.6 million at the low end of our guidance and up 50% year-over-year as we scale the organization for growth. Now I think it's important to note that this is considerably below our 90% year-over-year revenue growth. We expect to continue to deliver considerable leverage in the business. Our OpEx increase was driven by a 59% increase in R&D as we continue to invest in the resources to deliver leading solutions. Our SG&A conversely was up 40% as we built out public company infrastructure.
第四季的總營運費用為 2,160 萬美元,處於我們預期的低端,由於我們擴大組織規模以實現成長,因此同比增長 50%。現在我認為值得注意的是,這遠低於我們 90% 的年收入成長率。我們期望繼續在業務中發揮相當大的槓桿作用。由於我們持續投入資源來提供領先的解決方案,我們的營運支出成長是由研發費用增加 59% 所推動的。隨著我們建造上市公司基礎設施,我們的銷售、一般及行政開支反而上漲了 40%。
We delivered net income of $2.8 million in Q4, an increase of $0.4 million sequentially and $5.1 million year-over-year. Cash flow from operations in the fourth quarter was $2.4 million, an increase of $0.6 million sequentially and $13.9 million year-over-year. CapEx was $9.6 million in the quarter driven by production mask sets and free cash flow was negative $7.3 million, an improvement of $3.7 million year-over-year. We ended the quarter with cash and equivalents of $259.3 million, an increase of $18.8 million over the third quarter. This increase in cash came from the net proceeds of a greenshoe offering in connection with our successful IPO completed in January.
我們第四季的淨收入為 280 萬美元,比上一季增加 40 萬美元,比去年同期增加 510 萬美元。第四季經營現金流為 240 萬美元,比上一季增加 60 萬美元,比去年同期增加 1,390 萬美元。本季資本支出為 960 萬美元,主要受生產掩模版的推動,自由現金流為負 730 萬美元,較去年同期改善 370 萬美元。截至本季末,我們的現金和等價物為 2.593 億美元,比第三季增加了 1,880 萬美元。現金增加來自我們一月成功完成首次公開發行 (IPO) 所帶來的超額配售淨收益。
Our accounts receivable balance increased 36% sequentially to $29.5 million, while days sales outstanding increased slightly to 72 days, up from 71 days in Q3. Our Q4 ending inventory was $27.3 million, up $1.2 million sequentially as we continue our product ramp.
我們的應收帳款餘額較上季成長 36%,達到 2,950 萬美元,而應收帳款週轉天數則從第三季的 71 天小幅增加至 72 天。隨著我們產品不斷增加,我們第四季的期末庫存為 2,730 萬美元,比上一季增加了 120 萬美元。
Now turning to guidance for the first quarter. We currently expect revenue in Q1 fiscal '23 to be between $43.5 million and $47.5 million, up 21% sequentially at the midpoint and 324% year-over-year. We expect Q1 gross margin to be within a range of 59% to 61%. We expect Q1 operating expenses to be between $21.5 million and $23.5 million. And finally, we expect Q1 weighted average diluted share count to be approximately 161 million shares. As Bill mentioned, we expect to achieve at least $200 million of revenue in fiscal '23. Coupling our strong growth and our fiscal discipline, we will continue to generate leverage in the business and expect to deliver a double-digit operating margin for the full year.
現在來談談第一季的指引。我們目前預計 23 財年第一季的營收將在 4,350 萬美元至 4,750 萬美元之間,中位數環比成長 21%,年增 324%。我們預計第一季毛利率在59%至61%之間。我們預計第一季的營運費用將在 2,150 萬美元至 2,350 萬美元之間。最後,我們預計第一季加權平均稀釋股數約為 1.61 億股。正如比爾所提到的,我們預計23財年的收入將至少達到2億美元。結合我們強勁的成長動能和財務紀律,我們將繼續在業務中發揮槓桿作用,並預計全年實現兩位數的營業利潤率。
And with that, I will open it up for questions. Thank you.
現在,我將開始回答大家的提問。謝謝。
Operator
Operator
(Operator Instructions) Our first question will come from the line of Toshiya Hari from Goldman Sachs.
(操作員指示)我們的第一個問題來自高盛的 Toshiya Hari。
Toshiya Hari - MD
Toshiya Hari - MD
I had 2, if I may. First one, Bill, just on kind of the supply dynamic. Curious how significant or how meaningful the hit was to revenue in the April quarter. And if you can kind of share with us how your partner is doing today, again, from a supply or operations perspective, that would be helpful. And will you be caught up from a supply perspective exiting this quarter? And then I've got a quick follow-up.
如果可以的話,我有 2 個。首先,比爾,只是談談供應動態。好奇這次打擊對於四月當季的收入有多大影響或多大意義。如果您能從供應或營運的角度與我們分享您合作夥伴目前的經營狀況,將會很有幫助。從供應角度來看,本季結束時您會陷入困境嗎?然後我會快速跟進。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Sure. I appreciate the question. So let me give some color. If we look at the disruption we had, it was -- it really began in the first half of April, and we were kind of back up in production by the end of April or the last week in April. The reason we did the 8-K was because we were trying to be as transparent as possible with investors. Being a newly public company with significant interest from many investors, we were actually having many investor meetings in the same week. We received the news on the mandate from our supply chain partner. So we're trying to lean towards being as transparent as possible.
當然。我很感謝你提出這個問題。所以讓我給一些顏色。如果我們看看我們所遇到的混亂,它實際上是從四月上半月開始的,到四月底或四月的最後一周,我們的生產就恢復了。我們制定 8-K 報表的原因是我們想對投資者做到盡可能的透明。作為一家受到許多投資者廣泛關注的新上市公司,我們實際上在同一周舉行了多次投資者會議。我們從供應鏈合作夥伴那裡收到了有關該授權的訊息。因此,我們努力盡可能地透明。
And so we managed to make the low end of our guidance for the quarter and we're happy about that. We've been in the growth mode across all of our products and IP. And so we were still able to perform very well in the quarter, even given the impact that we had from the production shortfall in April. To answer your question about going forward, we expect to make it up in Q1. Sorry, yes, in Q1.
因此,我們成功實現了本季的最低預期,我們對此感到高興。我們的所有產品和 IP 都處於成長模式。因此,即使考慮到 4 月產量短缺的影響,我們本季的表現仍然非常出色。回答您關於未來的問題,我們預計將在第一季實現這一目標。抱歉,是的,在 Q1。
Toshiya Hari - MD
Toshiya Hari - MD
Got it. And then as my follow-up, you talked about a fiscal year '23 revenue outlook of at least $200 million or, I think, Bill, you said up 88%. I was hoping you could give a little bit more color on or differentiate between your product business and your IP business. And more importantly, within your product business, I'm guessing the vast majority of that growth is going to be coming from AEC. But how are you thinking about Line Card PHYs, optical DSPs? And then within AEC, if you can kind of differentiate between your largest customer and your second largest customer, that would be super helpful.
知道了。然後作為我的後續問題,您談到了 23 財年的收入預期至少為 2 億美元,或者,我想,比爾,您說的是增長 88%。我希望您能更詳細地解釋或區分您的產品業務和 IP 業務。更重要的是,在您的產品業務中,我猜測絕大部分成長將來自 AEC。但是您如何看待線路卡 PHY、光學 DSP 呢?然後在 AEC 內,如果您可以區分最大的客戶和第二大客戶,那將非常有幫助。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Sure. So again, appreciate the question. The way that the growth is going to break down, I think it's going to be consistent in a sense that we see growth across all of our businesses. If I were to kind of summarize by product line, I think line card will be very steady growth as we've seen over the last several years. AEC will, I think, make up the majority of the absolute growth. But if we look at -- from our percentage growth standpoint, I think optical will be growing the fastest from a percentage standpoint, although it's from a smaller base. From an IP perspective, Dan has given guidance that we expect long term to be on the order of 10% to 15%. We think for the year that we will probably exceed that expectation. And so hopefully, that gives you an idea about the growth that we see in the upcoming year.
當然。所以,我再次感謝你提出這個問題。我認為,成長的方式在某種意義上將是一致的,因為我們看到我們所有業務都在成長。如果我要按產品線進行總結,我認為產品線將會像過去幾年那樣穩定成長。我認為,AEC 將佔絕對成長的大部分。但如果我們從百分比增長的角度來看,我認為光學從百分比的角度來看將增長最快,儘管它的基數較小。從 IP 角度來看,Dan 給出了指導,我們預計長期成長率將在 10% 到 15% 之間。我們認為今年我們可能會超越這個預期。希望這能讓您了解我們在來年看到的成長情況。
Toshiya Hari - MD
Toshiya Hari - MD
And Bill, sorry, within AEC, your largest customer and the second customer, which you expect to ramp in fiscal '23, should we expect the majority of the growth to still come from your largest customer? Or could your #2 customer be as impactful in fiscal '23?
比爾,抱歉,在 AEC 內部,您的最大客戶和第二大客戶,您預計在 23 財年將實現增長,我們是否應該預期大部分增長仍來自您的最大客戶?還是您的第二大客戶在 23 財年會否同樣具有影響力?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Well, as far as the second hyperscaler that we're working with, we expect the ramp to begin in fiscal '23. And so with that said, it's sometimes hard to pinpoint exactly when the ramp is going to happen because there's tremendous complexities around the exact deployment schedule with our end customers. We'll be ready to ramp in the first half of our fiscal year. But we're kind of giving guidance that says that the ramp will probably happen -- the initial ramp will happen towards the end of the year. And so to answer your question more directly, we don't think it's going to be a huge amount of revenue coming within FY '23 from that second hyperscaler. We would expect to have very high growth in the following year.
嗯,就我們正在合作的第二家超大規模企業而言,我們預計成長將在23財年開始。因此,有時很難準確指出何時會出現產量上升,因為我們的最終客戶的確切部署時間表非常複雜。我們將準備在財政年度上半年加大力度。但我們給出的指導表明,產量上升可能會發生——最初的上升將在今年年底發生。因此,更直接地回答你的問題,我們認為第二家超大規模企業在 23 財年不會帶來巨額收入。我們預計明年將實現非常高的成長。
Operator
Operator
Our next question comes from the line of Vivek Arya from Bank of America.
我們的下一個問題來自美國銀行的 Vivek Arya。
Vivek Arya - MD in Equity Research & Research Analyst
Vivek Arya - MD in Equity Research & Research Analyst
I actually had a question on the Q1 outlook and then for fiscal '23. So when I look at your Q1 outlook, right, and I assume, let's say, 80% is going to come from product and 20% from IP or so. That's just a very strong sequential growth in your product segment. So I just wanted to make sure you have the inventory to support that kind of product ramp. And I imagine part of it is just a swing from the prior quarter that you were not able to deliver. So just kind of the confidence and the support to deliver on this kind of sequential product ramp going into Q1.
我實際上對第一季的前景以及 23 財年的前景有一個疑問。因此,當我查看您的第一季前景時,我假設 80% 來自產品,20% 來自 IP 左右。這只是您的產品領域的非常強勁的連續成長。所以我只是想確保你有足夠的庫存來支持這種產品的成長。我想部分原因是由於上一季你們未能達成預期目標。因此,我們對在第一季實現這種連續的產品升級抱持信心並給予支持。
Daniel Fleming - CFO
Daniel Fleming - CFO
Yes. Thanks, Vivek. That's a great question. Let me address that. So you're exactly correct in terms of -- there was some catch up from the delays that we experienced in Q4. And we are -- our factory in Kunshan is back up and running, so we expect to fulfill the demand, the gap that we had the previous quarter. And from an inventory standpoint, also bear in mind that, as Bill mentioned, we are experiencing strength across our entire product line, and we have been building inventory across our entire product line. And you can see that in our balance sheet in Q4 as well. So we are highly confident that we can achieve what we have set out to achieve in Q1.
是的。謝謝,維韋克。這是一個很好的問題。讓我來談談這個問題。所以你說的完全正確——我們在第四季遇到的延遲已經得到彌補。我們位於崑山的工廠已經恢復運營,因此我們預計可以滿足需求,彌補上一季的缺口。從庫存的角度來看,也要記住,正如比爾所提到的,我們整個產品線都在增強,而且我們一直在為整個產品線建立庫存。您也可以在我們第四季的資產負債表中看到這一點。因此,我們非常有信心能夠實現我們在第一季設定的目標。
Vivek Arya - MD in Equity Research & Research Analyst
Vivek Arya - MD in Equity Research & Research Analyst
Got it. And then on fiscal '23, Bill, you gave this very strong outlook of $200 million plus. Can you give us a sense of backlog to support that view? Just given a lot of the macro concerns about spending slowdowns and whatnot. I understand that a lot of your growth is very company-specific and product cycles, but it's still a very strong outlook for next year. So maybe a sense of backlog. And part B of that is, how are you thinking, Dan, about the gross margins that can go with the mix that you have in mind for next year?
知道了。然後,比爾,在 23 財年,你給了 2 億美元以上的非常強勁的前景。您能否為我們介紹一下積壓情況來支持這個觀點?只是考慮到人們對支出放緩等宏觀問題的擔憂。我知道你們的成長很大程度上與公司特定性和產品週期有關,但明年的前景仍然非常強勁。所以也許有一種積壓的感覺。 B 部分是,丹,您認為明年您所設想的產品組合能達到的毛利率是多少?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Yes. Thanks for the question. So I think that's -- let me first comment on the fact that the unprecedented tightness in the supply chain has really caused a change in behavior and demand planning with our customers. And it's caused a demand planning change for us as well. So it's how we work with our supply chain partners and it's how our customers work with us. And so many of the customers are going to great measures to ensure the flow product over the next year of 52 weeks. And so it's hard to put a label on exactly how that firm demand comes. So there is backlog, there is binding forecasts and other forms of commitment.
是的。謝謝你的提問。所以我認為——首先讓我評論一下這個事實,即供應鏈前所未有的緊張確實導致了我們客戶的行為和需求計劃的改變。這也導致了我們的需求計劃改變。這就是我們與供應鏈合作夥伴的合作方式以及我們的客戶與我們合作的方式。因此許多客戶都採取重大措施來確保未來一年52週的流量產品。因此,很難準確地描述這種堅定需求是如何產生的。因此存在積壓,有約束力的預測和其他形式的承諾。
Generally speaking, I think as we look out through the next year, I think we feel comfortable that we're close with our key customers. And I feel like there is confidence as we come into the year that, that demand look that we're getting is a consistent 52-week look, and it's rolling every single month. So I feel like as we head into the year now, I do feel confident with the end demand from our customers.
總體而言,展望明年,我認為我們與我們的關鍵客戶關係保持密切,這讓我們感到很欣慰。我相信,隨著新年的到來,我們獲得的需求預測是持續 52 週的,每個月都在變化。因此,我覺得,當我們進入新的一年時,我對客戶的最終需求充滿信心。
Daniel Fleming - CFO
Daniel Fleming - CFO
And Vivek, let me address your gross margin question. The first thing to bear in mind is, as we've discussed previously, our IP revenue can vary quarter-to-quarter. So that does have an impact on our quarter-to-quarter gross margin percentage, obviously. But in terms of our margin expansion opportunities over the course of time, especially in the long term, everything is exactly as we had expected it to be over the last few quarters as we've been discussing with you. So what that really means is in FY '23, there is a relatively large mix of products that we have, but margins will continue to expand for our products as we continue to achieve scale. And then beyond that, actually kind of going beyond fiscal '23, then we believe these market fundamentals are out there that will enable margin expansion, specifically with our AEC product line.
維韋克,讓我來回答一下你的毛利率問題。首先要記住的是,正如我們之前討論過的,我們的 IP 收入可能每季都會有所不同。所以這顯然會對我們的季度毛利率產生影響。但就我們長期的利潤率擴大機會而言,特別是從長期來看,一切都與我們過去幾季預期的完全一樣,正如我們與您討論的那樣。所以這實際上意味著在23財年,我們的產品組合相對較大,但隨著我們繼續實現規模化,我們產品的利潤率將繼續擴大。除此之外,實際上超越財年 23 年後,我們相信這些市場基本面將推動利潤率擴大,特別是我們的 AEC 產品線。
As Bill mentioned, we believe DAC is dead at 800 gig ports. But the other thing in FY '23 and '24 is our product mix will be shifting a bit where optical will become a significant contributor in '23 and then even more so in '24. That obviously has an impact on margin expansion opportunities as well. But let me just reiterate, from a long-term perspective, our total corporate gross margin expectation still remains 63% to 65%. And as Bill just mentioned a moment ago, our IP will make up 10% to 15% of that revenue mix. So if you were to isolate on product margins, you can back solve that. It's around 60% of the product margin itself, excluding IP. So hopefully, that gives you some color on our margin expectations.
正如比爾所提到的,我們認為 DAC 在 800 千兆埠處已經死亡。但在 23 財年和 24 財年的另一件事是,我們的產品組合將發生一些變化,光學產品將在 23 年成為一個重要的貢獻者,然後在 24 年貢獻更大。這顯然也會對利潤擴大機會產生影響。但我只想重申,從長遠來看,我們對公司整體毛利率的預期仍然保持在 63% 至 65% 之間。正如比爾剛才提到的,我們的智慧財產權將佔該收入結構的 10% 到 15%。因此,如果您要隔離產品利潤,您就可以解決這個問題。約佔產品利潤本身的60%(不包括IP)。所以希望這能讓您對我們的利潤預期有所了解。
Operator
Operator
Our next question will come from the line of Tore Svanberg from Stifel.
我們的下一個問題來自 Stifel 公司的 Tore Svanberg。
Tore Egil Svanberg - MD
Tore Egil Svanberg - MD
Yes. Congratulations on the continued strong execution. Bill, you talked about a third program ramping with your largest customer for AEC here in fiscal '23. Could you just elaborate a little bit more on the magnitude of that third program? I mean, obviously, you can't disclose too much, but any metric that you could perhaps share with us just so we understand the magnitude of the third program versus the previous 2.
是的。祝賀您持續強勁執行。比爾,您談到了在 23 財年與 AEC 的最大客戶合作的第三個專案。能否進一步詳細說明第三個計劃的規模?我的意思是,顯然你不能透露太多,但你可以與我們分享任何指標,以便我們了解第三個項目相對於前兩個項目的重要性。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Sure, sure. So let me first give some color on the first 2 programs. The first 2 programs were both NIC to ToR AECs, the first was a 50 gig AEC solution that was 2 lanes of 25. The second one was a next-generation 100 gig or 4 lanes of 25 NIC to ToR solution. And so I can't provide too many details about this third program, but it's in the same NIC to ToR space. And it does have the potential to be significant, although we don't have details on the specifics related to the volume expectations. But from our perspective, we think that this can be the third significant program that we -- that we've engaged on.
當然,當然。因此,讓我先對前兩個程序進行一些介紹。前兩個方案都是 NIC 到 ToR AEC,第一個是 50 gig AEC 解決方案,即 2 個 25 通道。因此我無法提供關於這個第三個程式的太多細節,但它位於同一個 NIC 到 ToR 空間。儘管我們還沒有關於數量預期的具體細節,但它確實有可能產生重大影響。但從我們的角度來看,我們認為這可能是我們參與的第三個重要項目。
Tore Egil Svanberg - MD
Tore Egil Svanberg - MD
That's fair. And as my follow-up, could you also elaborate a little bit on the diversification strategy of your supply chain? Obviously, you were impacted by the China lockdown this quarter. But help us understand a little bit how difficult is it to diversify, how long will it take. Just so as -- so we can get a sense for how quickly you can have multiple suppliers to alleviate the current issues.
這很公平。作為我的後續問題,能否詳細說明您們供應鏈的多元化策略?顯然,您本季受到了中國封鎖的影響。但請幫助我們稍微了解一下多樣化有多難,需要多長時間。這樣我們就可以了解您可以多快擁有多個供應商來緩解當前的問題。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Sure. Sure. It's a great question. And it's -- since April has become kind of top of mind for us. There's really 2 different approaches here. One is a mid- to long-term approach, which is to gain geographic diversity. We've got a very large volume established -- a very large volume capability established in Kunshan with the supply partners that we've got there. Both of these supply partners are global -- large global corporations. But generally speaking, as we think about becoming more geographically diverse, we're now kind of actively looking at different locations globally and the kind of time frame that it would really be for us to bring up production in a significant way.
當然。當然。這是一個很好的問題。自四月以來,這已成為我們最關心的問題。這裡實際上有兩種不同的方法。一種是中長期的方法,即獲得地理多樣性。我們與崑山的供應合作夥伴一起建立了非常大的產能。這兩個供應合作夥伴都是全球性的大型跨國公司。但一般來說,當我們考慮變得更加地域多樣化時,我們現在正在積極地尋找全球不同的地點,以及真正讓我們顯著提高產量的時間框架。
One of the challenges that we're faced with is that we're still in the very early stages of ramp. And so we've had a relatively large investment with our partners with the current location. So this would be in addition to that. In any case, we don't expect that in the near term, we're going to be able to establish this geographic diversity. And that's why we've talked about judiciously building inventory. We expect in this quarter that we'll establish a significant buffer of inventory so that we have future impacts that are force majeure type of impacts, that we'll be able to navigate it much more smoothly than we did in April.
我們面臨的挑戰之一是我們仍處於發展的早期階段。因此,我們與合作夥伴在當前地點進行了相對較大的投資。因此這將是對此的補充。無論如何,我們不認為在短期內能夠建立這種地理多樣性。這就是我們談論明智地建立庫存的原因。我們預計本季我們將建立一個相當大的庫存緩衝,以便我們能夠比四月份更順利地應對未來不可抗力的影響。
And so that is really something that we've decided to do because of the strength of the forecast and the backlog and the binding forecast commitments that we've got, we feel comfortable with making that investment. So really a short term is let's address it by building some inventory in a smart way. And then long term, of course, you'll see us bring up production outside of Kunshan.
因此,我們確實決定這麼做,因為考慮到預測的力度、積壓訂單以及我們獲得的具有約束力的預測承諾,我們對於進行這項投資感到很放心。因此,短期內我們需要透過明智的方式建立一些庫存來解決這個問題。當然,從長遠來看,你會看到我們在崑山以外的地方開展生產。
Operator
Operator
Our next question will come from the line of Quinn Bolton from Needham.
我們的下一個問題來自尼德姆的奎因·博爾頓。
Nathaniel Quinn Bolton - Senior Analyst
Nathaniel Quinn Bolton - Senior Analyst
Congratulations on the results and outlook. I wanted to follow up on Tore's question, just sort of around the current supply chain in Kunshan. You mentioned the suppliers, I think, are now back up and running. But we've heard stories that many factories may only be at 50% of labor staff, given the effects of the lockdowns. Is your supplier back up sort of running full steam? And are both suppliers providing you with AECs in the first quarter?
恭喜你所取得的成果和前景。我想跟進一下 Tore 的問題,關於崑山目前的供應鏈。您提到供應商,我認為,現在已經恢復正常運作。但我們聽說,由於封鎖的影響,許多工廠的勞動力儲備可能只有 50%。你的供應商是否已恢復全力運作?這兩家供應商都會在第一季向您提供 AEC 嗎?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
I can say that the feedback that you're getting from your contacts is accurate, that coming back, there's really phases towards coming back. And the first phase is basically reestablishing production with a smaller group of employees that were maintained at the facility. And so our partners are now hiring again and increasing capacity. We're not quite back to the full capacity where we had been running. But I think in the next couple of weeks or next few weeks, we're on a good path to achieve what we consider full capacity at this point. And so yes, both of our partners will be back up and shipping.
我可以說,你從聯絡人那裡得到的回饋是準確的,回來確實有一個階段。第一階段基本上是透過工廠中保留的一小群員工來恢復生產。因此,我們的合作夥伴現在正在再次招募並增加產能。我們尚未完全恢復先前的全部產能。但我認為,在接下來的幾週或接下來的幾週內,我們將有望實現目前所認為的最大產能。是的,我們的兩個合作夥伴都將恢復出貨。
Nathaniel Quinn Bolton - Senior Analyst
Nathaniel Quinn Bolton - Senior Analyst
Great. And then second question is you'd mentioned sampling the 800 gig AECs to multiple vendors. Just wondering, it sounds like 800 gig modules may be starting to be deployed for sort of AI cluster applications. Wondering if you could give us some sense. When do you think you might see the 800 gig AECs going into volume production, whether it's AI clusters or whether it's the distributed disaggregated chassis application?
偉大的。第二個問題是您提到向多個供應商提供 800 千兆 AEC 的樣品。只是想知道,聽起來 800G 模組可能開始部署用於某種 AI 叢集應用。想知道您是否能給我們一些啟發。您認為何時可以看到 800G AEC 投入大量生產,無論是 AI 叢集還是分散式分解機箱應用?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Yes, great question. And I'll start by saying that we do see a lot of 100 gigabits per second per lane silicon, 800 gig for switches, 400 gig for 4 lanes of 100 for high-end servers. We see a lot of silicon that is sampling in development with leading hyperscalers and switch OEMs. And so we're seeing a lot of activity right now on 100 gig per lane AECs really as a result of our solution being readily available. And customers need to source some form of 800 gig connectivity solution for their development. And so from a timing standpoint, on deployment, this is a really hard one for us to have a great opinion on. We'd like to see it sooner than later as everybody in the industry would. But in reality, we think that it's going to be in the -- probably in the 12- to 18-month time frame from now before we see it in volume.
是的,很好的問題。首先我要說的是,我們確實看到很多每通道 100 千兆位元每秒的矽片、用於交換器的 800 千兆位元每秒的矽片、用於高階伺服器的 4 個 100 通道的 400 千兆位元每秒的矽片。我們看到許多矽片正在與領先的超大規模生產商和交換器 OEM 合作開發。因此,由於我們的解決方案隨時可用,我們現在看到每個通道 100 千兆的 AEC 上有很多活動。客戶需要為其開發尋找某種形式的 800G 連線解決方案。因此,從時間角度來看,對於部署,我們很難做出很好的意見。我們和業內每個人一樣,都希望盡快看到這一天。但實際上,我們認為可能還需要 12 到 18 個月的時間才能看到其批量生產。
I will say that, again, we'll be ready for production, I think, far in advance of when actual production deployments begin. So I think we're in great position. And we think just to reiterate that 800 gig or 100 gigabits per second per lane, we see across the board that we don't see any customers that are really trying to make DACs work. And so now it's really a function of deploying with AECs for short connections and deploying with optical solutions for longer solutions. So we think that's more and more firming up as we kind of move through the last several months.
我想再說一遍,我們將在實際生產部署開始之前就做好生產準備。所以我認為我們處於非常有利的地位。我們認為,重申一下,每通道每秒 800 千兆位元或 100 千兆位,我們全面看到,我們沒有看到任何真正嘗試使 DAC 發揮作用的客戶。因此,現在它實際上是使用 AEC 部署短連接,使用光纖解決方案部署長連接的功能。因此,我們認為,隨著過去幾個月的發展,這種局面將越來越穩定。
Operator
Operator
(Operator Instructions) Our next question will come from the line of Vijay Rakesh from Mizuho.
(操作員指示)我們的下一個問題來自瑞穗的 Vijay Rakesh。
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Bill and Dan, great quarter and guide. Just a quick question on the mix of revenues on the product side. When you look at the 4Q and 1Q, if you can give us a split of AEC versus optical and line card.
比爾和丹,很棒的導遊。我只想問一個簡單的問題,關於產品方面的收入組合。當您查看 4Q 和 1Q 時,您是否可以將 AEC 與光學和線卡進行劃分。
Daniel Fleming - CFO
Daniel Fleming - CFO
Yes. Thanks, Vijay. So we don't -- unfortunately, we don't disclose specifics when it comes to our product line mix. But from a long-term perspective, the expectations that we've set out, we're trending toward those amounts, which longer term, we would expect AEC to be nearly half of our revenue. Again, IP, right now, we're not quite at the long-term model, of course. So we're slightly above the 10% to 15%. And then the line card business has been a very, very strong business for us, and it continues its strength and its growing. Longer term, it will probably be in the 15% range. And then the balance, optical will be a significant contributor this year, especially towards the end of the year and then even more so next year. So hopefully, that gives you just kind of broad strokes, the direction that we're headed.
是的。謝謝,維傑。因此,不幸的是,我們不會透露有關我們的產品線組合的具體資訊。但從長遠來看,我們設定的預期正趨向於這些數額,從長遠來看,我們預計 AEC 將占我們收入的近一半。再說一遍,IP,當然,現在我們還沒有完全達到長期模型。因此我們略高於 10% 到 15%。然後,線卡業務對我們來說是一個非常非常強大的業務,並且它繼續保持強勁並不斷成長。從長期來看,這一比例可能在 15% 左右。然後平衡一下,光學將是今年的重要貢獻者,尤其是在年底,明年更是如此。所以希望這能給你一個大概的印象,就是我們前進的方向。
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Got it. And on the AEC side, I know you guys have a pretty broad portfolio of MACsec and phase shift and speed shift and NIC to ToR, et cetera. I'm just wondering, when you look at the competitive landscape, given your broad breadth of portfolio and you had qualified at many of the enterprise hyperscale guys. What is the competitive moat? I mean, you guys think you have a 12 to 24 month or even longer lead time when you look at the competition who, I would say, most of them are still trying to get their product in place, but if you can give some color around how you look at that space.
知道了。在 AEC 方面,我知道你們擁有相當廣泛的 MACsec、相移、速度移位、NIC 到 ToR 等產品組合。我只是想知道,當您審視競爭格局時,考慮到您擁有廣泛的產品組合,並且您已經在許多企業超大規模領域取得資格。競爭護城河是什麼?我的意思是,你們認為自己有 12 到 24 個月甚至更長的交貨時間,當你看看競爭對手時,我想說,他們中的大多數仍在努力將他們的產品推向市場,但如果你能給出一些你如何看待這個領域的看法。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Yes, great question. I think that first of all, I'll say that we're very happy that we see competitors validating the AEC product category. We feel like we do have a significant lead in a sense that we've been working on this product category for going on 4 years. The approach that we've taken, I think, is unique in a sense that we have built an organization internally at Credo that's responsible for the design, the development and ultimately, the delivery of the AEC system solution. That means that at the end of the day, we are responsible for the entire AEC system solution with a single throat to choke in a sense when we're dealing with customers.
是的,很好的問題。我認為首先,我要說的是,我們很高興看到競爭對手驗證了 AEC 產品類別。我們覺得我們確實擁有明顯的領先優勢,因為我們已經在這個產品類別上工作了四年。我認為,我們採取的方法是獨一無二的,我們在 Credo 內部建立了一個組織,負責 AEC 系統解決方案的設計、開發和最終交付。這意味著,到最後,當我們與客戶打交道時,我們在某種意義上要對整個 AEC 系統解決方案負責。
Our manufacturing partners do a great job in what they do well. We had started by thinking that we could sell chips to copper cable companies, and it just simply was very clear very quickly that our approach is going to be more effective if we own the entire system design from the firmware to the host -- from the firmware on the copper to the test program development to the actual tester design and development. We felt that, that was a much stronger approach than trying to rely on others to put all of this together. So I do think that as we look at our business now, it's really taken shape in a sense that it's different than our original thinking, which was, hey, we'll just put together a 400 gig on each end of the cable, 400 gig connector on each end of the cable.
我們的製造合作夥伴在他們擅長的領域中表現出色。我們一開始就想著可以將晶片出售給銅纜公司,但很快我們就清楚,如果我們擁有從韌體到主機的整個系統設計——從銅纜上的韌體到測試程式開發,再到實際測試儀的設計和開發,我們的方法將會更有效。我們認為,這是一種比試圖依賴他人來完成所有工作更強有力的方法。因此我確實認為,當我們現在審視我們的業務時,它已經成形,在某種意義上它與我們最初的想法不同,我們的最初想法是,嘿,我們只需在電纜的每一端組裝一個 400 千兆,在電纜的每一端組裝一個 400 千兆連接器。
The solutions we're delivering in volume right now are unique. These are truly system level solutions that are -- I think, would be -- could be classified as the most advanced connectivity solution, cable connectivity solutions ever delivered to the data center. If you think about what we're shipping currently to our first hyperscaler, they were successful in deploying a dual tour architecture in a single rack because the intelligence in our cable, we've got the ability to sense when the ToR port is failing, our cable makes the decision to switch the data flow to the second port. So this is a level of intelligence in the cable that has never been delivered as a DAC, never been delivered as an AOC or other optical connection.
我們現在批量交付的解決方案是獨一無二的。這些都是真正的系統級解決方案,我認為,可以歸類為最先進的連接解決方案、有史以來交付給資料中心的電纜連接解決方案。如果你想想我們目前正在向我們的第一個超大規模器運送什麼,他們成功地在單一機架中部署了雙路徑架構,因為我們的電纜中具有智能,我們能夠感知 ToR 連接埠何時出現故障,我們的電纜會決定將資料流切換到第二個連接埠。因此,這是電纜中的一種智慧水平,從未以 DAC 的形式提供,也從未以 AOC 或其他光纖連接的形式提供。
And so this is the direction that our business has taken as a result of us owning and really building the capability internally. I can tell you that the second solution that we're developing is also very unique. It's not just a straight cable. And so we expect that more and more innovation will be requested by our customer base as they see this is now a category where they can think about system solutions that they haven't even thought of before. There will be business, especially in the switching and routing layer. That is leading-edge 800 gig ports where you have 800 gig connectors on each end of the cable. That's going to be a robust business as well.
因此,這是我們擁有並真正在內部建立能力之後,我們的業務所採取的方向。我可以告訴你,我們正在開發的第二個解決方案也非常獨特。它不僅僅是一條直電纜。因此,我們預計我們的客戶群將會要求越來越多的創新,因為他們發現這是一個他們可以考慮以前從未想過的系統解決方案的類別。會有業務,特別是在交換和路由層。這是尖端的 800 千兆端口,電纜的每一端都有 800 千兆連接器。這也將成為一項強勁的業務。
But generally, we think that the approach we took is paying off right now as you see us taking up as a clear leader in the space. But I will say that having competition is always a great thing. So we appreciate that multiple people are now investing and that it seems that the market is accepting AEC is really a de facto solution for short connections, meaning 3 meters in the less.
但總的來說,我們認為,我們所採取的方法現在正在獲得回報,因為您會看到我們成為該領域的明顯領導者。但我想說,有競爭總是一件好事。因此,我們讚賞現在有許多人進行投資,而且市場似乎正在接受 AEC,它確實是短連接的實際解決方案,即最短 3 公尺的連接距離。
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst
Yes. No, got it. I know you guys have talked about MACsec cables and others. The other question I had is, given that you guys are at that N-1 node on the SerDes chip side, does that allow you more capacity at the foundry side, given that you are not competing for the leading edge? I know you kind of guys resolved the cable side of the supply chain. But on the chip side, is it fair to assume that the capacity is -- you're able to negotiate better capacity there?
是的。不,明白了。我知道你們已經討論過MACsec電纜和其他問題。我的另一個問題是,鑑於你們在 SerDes 晶片方面處於 N-1 節點,考慮到你們不爭奪領先優勢,這是否能讓你們在代工方面擁有更多的產能?我知道你們已經解決了供應鏈中電纜方面的問題。但在晶片方面,是否可以公平地假設產能是——您能夠在那裡協商更好的產能?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Yes, absolutely. So you're right on with that. And so the strategy that we've taken with our process choices is really based on the fact that connectivity solutions are a primary decision for us. We're not being driven to advanced processes due to memory or large amounts of logic. And so we can choose a process that's the most suitable for our design. And so we've always had this mentality if we can use a more mature process and achieve best-in-class power, best-in-class performance and best-in-class guide size, of course, that's the approach we're going to take because we can, in turn, become the disruptor in the market.
是的,絕對是如此。你說得對。因此,我們在流程選擇上採取的策略實際上是基於這樣一個事實:連接解決方案對我們來說是一個主要決策。我們並沒有因為記憶體或大量邏輯而走向先進的流程。因此我們可以選擇最適合我們設計的流程。因此,我們始終抱持這種心態,如果我們能夠使用更成熟的流程,實現一流的功率、一流的性能和一流的導向尺寸,當然,這就是我們要採取的方法,因為我們反過來可以成為市場的顛覆者。
That strategy has turned into a supply chain advantage for us because we are in an N-1, 12 nanometer is really our workhorse. We've had a lot of success. We've really never been limited from a capacity standpoint. And I will say on top of that, if you look at our die sizes, we -- our demand for wafers is less because our die sizes are smaller. And so it's turned into a big advantage from a supply perspective as well. And that really wasn't intended when we made the decision, but it sure is a strength that we've got going into this year.
該策略已成為我們的供應鏈優勢,因為我們處於 N-1 階段,12 奈米才是我們真正的主力。我們取得了很多成功。從容量角度來看,我們從未受到限制。我要說的是,如果你看看我們的晶片尺寸,我們對晶圓的需求較少,因為我們的晶片尺寸較小。因此從供應角度來看這也成為一個巨大的優勢。當我們做出這個決定時,我們並沒有真的想這麼做,但這確實是我們今年的優勢。
Operator
Operator
And our next question will come from the line of Suji Desilva from ROTH Capital.
我們的下一個問題來自 ROTH Capital 的 Suji Desilva。
Suji Desilva - MD & Senior Research Analyst
Suji Desilva - MD & Senior Research Analyst
Congratulations on the execution here. A quick question on AEC and then a bigger picture question. On AEC, the customer going from 1 to 3 wins. Can you give us a sense how big that denominators? How many opportunities there are at a given customer like this? And then are those sole sourced? Or are they dual sourced? Remind us that.
恭喜您在此執行。關於 AEC 的一個快速問題,然後是一個更大的問題。在 AEC 上,從 1 到 3 的客戶獲勝。能告訴我們分母有多大嗎?對於特定客戶來說,有多少這樣的機會?那麼這些都是唯一來源的嗎?或者它們有雙重來源?提醒我們這一點。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Yes, I think that's -- we view every hyperscaler as kind of an independent market. We also view that the work that they're doing at a NIC to ToR level as well as the work that they're doing in the switching and routing layers. We view all of these things as kind of separate markets as it relates to a given hyperscaler. We view that the opportunities that we'll see for AECs for the NIC to ToR space within each one of these hyperscalers will long term be -- there will be an AEC opportunity for every server deployed. As we look at the switching and routing layer, there's different strategies, different deployment strategies, different port speed strategies that we see no hyperscaler is the same as another.
是的,我認為──我們將每個超大規模企業視為獨立的市場。我們還查看他們在 NIC 到 ToR 級別所做的工作以及他們在交換和路由層所做的工作。我們將所有這些視為與特定超大規模企業相關的獨立市場。我們認為,從長遠來看,這些超大規模伺服器中 NIC 到 ToR 空間的 AEC 機會將是——每台部署的伺服器都會有 AEC 機會。當我們查看交換和路由層時,會發現存在不同的策略、不同的部署策略、不同的連接埠速度策略,我們發現沒有一個超大規模器與另一個超大規模器是相同的。
And so we think that AEC is a unique solution because it puts us in the architectural discussion with the hyperscalers we're engaged with. And long term, I expect all of the hyperscalers. And so I can't -- I don't think there's any nice boat that I can put on other than to say that we believe that the opportunity is going to be -- it's going to track the service shipments, and it's going to be based on the switching and routing layer based on the architectural decisions on disaggregation versus chassis.
因此,我們認為 AEC 是一個獨特的解決方案,因為它讓我們與我們合作的超大規模企業進行了架構討論。從長遠來看,我期待所有的超大規模企業都能如此。所以我不能——我不認為有任何好的預測可以給出,只能說我們相信機會是——它將追蹤服務發貨,它將基於交換和路由層,基於分解與底盤的架構決策。
Suji Desilva - MD & Senior Research Analyst
Suji Desilva - MD & Senior Research Analyst
Okay. And Bill, are those sole sourced, just to follow up there?
好的。比爾,這些都是唯一來源的嗎,只是為了跟進嗎?
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
I think that where we may be sole sourced today, we expect long term that will be in a dual source environment. And that's really driven by the desires that the hyperscalers have. They live in a world where dual sourcing is an absolute requirement. So we expect that we're going to be living in that world for sure. We may be sole sourced for some period of time. And we're in a mode of -- if we can be the partner that moves quickly and delivers successfully, we'll maintain a large market share.
我認為,雖然我們今天可能是單一來源,但我們預計長期將處於雙重來源環境中。這實際上是由超大規模企業的需求所驅動。他們生活在一個絕對要求雙重來源的世界。所以我們期望我們肯定會生活在這樣的世界。在一段時間內,我們可能會成為唯一的供應商。我們處於這樣一種模式——如果我們能夠成為快速行動、成功交付的合作夥伴,我們將保持較大的市場份額。
Suji Desilva - MD & Senior Research Analyst
Suji Desilva - MD & Senior Research Analyst
Okay. And then follow-up to big picture, given we're able to guide ahead for fiscal '23 and the visibility you have. I'm curious, various cloud vendors have seen kind of buy and pause cycles, maybe the processor guys. And can you tell me if it feels like you're more immune to that sort of cycle or whether that could be a factor in your forward visibility? Any color there would be helpful.
好的。然後跟進大局,因為我們能夠為 23 財年提供指導,並且擁有可見性。我很好奇,各種雲端供應商都經歷過購買和暫停週期,也許是處理器供應商。您能否告訴我,您是否感覺自己對這種循環更具免疫力,或者這是否會成為影響您前瞻性的一個因素?任何顏色都有幫助。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
I don't think that we would ever say that we're immune to the cycles that we've seen in the past. I will say that we've got discussions ongoing with our customers that are really discussions where we're trying to outline at a going out 52 weeks, very specific demand and very specific commitments so that we can go and source and build to those schedules. So I feel comfortable. Even with that, we do apply some conservatism. And so I do feel confident as we go into the year with the demand outlook that we've got. But I will never say that we're going to be immune to big changes if unforeseen things are possibly coming.
我認為,我們永遠不會說我們對過去所經歷的周期免疫。我想說的是,我們正在與客戶進行持續的討論,我們實際上是在嘗試在 52 週的時間內概述非常具體的需求和非常具體的承諾,以便我們能夠按照這些時間表去尋找和構建。所以我覺得很舒服。即使如此,我們還是採取了一些保守態度。因此,當我們進入新的一年時,我對我們的需求前景充滿信心。但如果不可預見的事情可能發生,我絕對不會說我們不會受到大變化的影響。
I will say also that the deployments that we're on right now are adding significant efficiency improvements. And so if we look at deploying a dual tour server rack, that's opposed to deploying 2 rack side by side. So there's an enormous savings in cost and enormous savings in power. And there is the opportunity to have better equipment utilization. And so I will say that even with unforeseen things, this is the type of investment that we think that customers will continue to make because the benefit is just so compelling. And that's why it has been a strategic imperative for our first customers they brand.
我還要說的是,我們現在的部署正在顯著提高效率。因此,如果我們考慮部署雙巡迴伺服器機架,這與並排部署 2 個機架相反。因此,成本和電力都得到了極大的節省。並且有機會提高設備利用率。所以我想說,即使出現不可預見的情況,我們認為客戶仍會繼續進行這種投資,因為其好處是如此引人注目。這就是為什麼它對我們的第一批客戶來說是一個策略要務。
Operator
Operator
We don't have further questions at this time. Bill, I'll turn the call over to you.
目前我們沒有其他問題。比爾,我會把電話轉給你。
William J. Brennan - President, CEO & Director
William J. Brennan - President, CEO & Director
Great. Well, let me thank you all for attending the call. I really appreciate the great questions, and I also appreciate the strong interest that you've got in Credo. So we'll look forward to talking with you in the future. Thank you very much.
偉大的。好吧,我感謝大家參加這次電話會議。我非常感謝這些精彩的問題,我也很欣賞您對 Credo 的濃厚興趣。因此我們期待將來與您交談。非常感謝。
Operator
Operator
This concludes today's conference call. You may now disconnect. Everyone, have a great day.
今天的電話會議到此結束。您現在可以斷開連線。祝大家有個愉快的一天。