Credo Technology Group Holding Ltd (CRDO) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions)

女士們先生們，感謝你們的支持。 （操作員說明）

I would now like to turn the conference over to Dan O'Neil. Please go ahead, sir.

我現在想把會議交給丹·奧尼爾。請繼續，先生。

Good afternoon, and thank you for joining us on our first quarter earnings call for fiscal 2024. Joining me today from Credo are our Chief Executive Officer, Bill Brennan; and our Chief Financial Officer, Dan Fleming.

下午好，感謝您參加我們的 2024 財年第一季度財報電話會議。今天從 Credo 加入我的是我們的首席執行官 Bill Brennan；以及我們的首席財務官丹·弗萊明。

I'd like to remind everyone that certain comments made in this call today may include forward-looking statements regarding expected future financial results, strategies and plans, future operations and 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 statements.

我想提醒大家，今天的電話會議中發表的某些評論可能包括有關預期未來財務業績、戰略和計劃、未來運營和我們經營所在市場以及其他討論領域的前瞻性陳述。這些前瞻性陳述受到風險和不確定性的影響，這些風險和不確定性在我們向 SEC 提交的文件中進行了詳細討論。公司管理層不可能預測所有風險，公司也無法評估所有因素對其業務的影響，或者任何因素或因素組合可能導致實際結果與任何前瞻性陳述中包含的結果存在重大差異的程度。聲明。

Given 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存在重大不利差異。除非法律要求，否則公司沒有義務在本次電話會議之後以任何理由公開更新前瞻性陳述，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 important measures 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, which can be accessed using the Investor Relations portion of our website.

此外，在這次電話會議中，我們還將提及某些非公認會計準則財務指標，我們認為這些指標是衡量公司業績的重要指標。這些非公認會計原則財務指標是對根據美國公認會計原則編制的財務業績的補充，而不是替代或優於根據美國公認會計原則編制的財務業績。我們今天發布的收益報告中討論了我們為什麼使用非公認會計原則財務指標以及我們的公認會計原則和非公認會計原則財務指標之間的調節，您可以通過我們網站的投資者關係部分訪問該報告。

I'll now turn the call over to our CEO. Bill?

我現在將把電話轉給我們的首席執行官。賬單？

Thank you, Dan, and thank you all for joining our Q1 fiscal '24 earnings call. I'll begin by providing an overview of our fiscal Q1 results. I'll then highlight what we see going forward into fiscal '24. Dan Fleming, our CFO, will follow my remarks with a detailed discussion of our Q1 financial results and share the outlook for the second quarter. We would then be happy to take questions.

謝謝 Dan，也感謝大家參加我們的 24 年第一季度財報電話會議。我將首先概述我們第一季度的財務業績。然後我將重點介紹我們對 24 財年的展望。我們的首席財務官丹·弗萊明 (Dan Fleming) 將在我發言後詳細討論我們第一季度的財務業績，並分享第二季度的前景。我們很樂意回答問題。

For Q1, Credo reported revenue of $35.1 million. Additionally, we reported non-GAAP gross margin of 59.8%. Our Q1 results and future growth are driven by the accelerating market opportunity price speed connectivity solutions. Our electrical and optical connectivity solutions delivered leading performance at port speeds ranging from 50 gigabits per second up to 1.6 terabits per second.

Credo 報告第一季度收入為 3510 萬美元。此外，我們報告的非 GAAP 毛利率為 59.8%。我們第一季度的業績和未來的增長是由不斷加速的市場機會、價格、速度連接解決方​​案推動的。我們的電氣和光纖連接解決方​​案以每秒 50 吉比特到每秒 1.6 太比特的端口速度提供領先的性能。

While we primarily serve the data center Ethernet market today, we continue to extend into other standard-based markets as the need for higher speed and more power-efficient connectivity increases exponentially. The changing workloads in the data center, specifically with regards to the onset of generative AI applications are driving the demand for higher bandwidth and higher density networking. This plays directly to Credo's strengths.

雖然我們目前主要服務於數據中心以太網市場，但隨著對更高速度和更節能連接的需求呈指數級增長，我們繼續擴展到其他基於標準的市場。數據中心不斷變化的工作負載，特別是生成式人工智能應用程序的出現，正在推動對更高帶寬和更高密度網絡的需求。這直接發揮了 Credo 的優勢。

All of Credo's connectivity solutions leverage our core SerDes technology and our unique customer-focused design approach, enabling Credo to deliver optimized, secure high-speed solutions with significant benefits in power efficiency and cost. Credo continues to see increasing customer engagements across our product and IP solutions, which include active electric cables or AECs, optical DSPs laser drivers and TIAs, line card PHYs, SerDes chiplets and SerDes IP licensing.

Credo 的所有連接解決方​​案均利用我們的核心 SerDes 技術和獨特的以客戶為中心的設計方法，使 Credo 能夠提供優化、安全的高速解決方案，並在功效和成本方面具有顯著優勢。 Credo 不斷看到客戶對我們的產品和 IP 解決方案的參與度不斷增加，其中包括有源電纜或 AEC、光學 DSP 激光驅動器和 TIA、線卡 PHY、SerDes 小芯片和 SerDes IP 許可。

I'll now review our overall business to give more perspective. First, regarding our AEC business. Credo remains a pioneer in the AEC market. Industry analysts forecast increasing AEC market penetration as port speeds increase for intra-rack connectivity. Our AEC solutions offer significant benefits compared to both passive direct attached copper cables, which are physically cumbersome (inaudible) integrity at higher speeds and active optical cables or AOCs, which are significantly higher power and higher cost.

我現在將回顧我們的整體業務，以提供更多視角。首先，關於我們的AEC業務。 Credo 仍然是 AEC 市場的先驅。行業分析師預測，隨著機架內連接的端口速度提高，AEC 市場滲透率將不斷提高。與無源直連銅纜和有源光纜或AOC 相比，我們的AEC 解決方案具有顯著優勢，前者在較高速度下物理上笨重（聽不見）完整性，後者的功率明顯更高且成本更高。

Today, our largest customer deploys our AECs for both general compute and AI applications. Additionally, we continue to design custom AEC solutions to solve for their next-generation deployments including their first internally developed 100-gig per lane AI deployment. At our second hyperscaler customer, our production ramp for both general compute and AI programs remains on track with expectations for continued growth throughout this fiscal year and fiscal '25. We also continue to make progress on their next-generation platforms with Credo receiving commitments from multiple 100-gig per lane AEC programs.

如今，我們最大的客戶為通用計算和人工智能應用程序部署了我們的 AEC。此外，我們繼續設計定制 AEC 解決方案，以解決他們的下一代部署問題，包括他們的第一個內部開發的每通道 100 Gb 的 AI 部署。在我們的第二個超大規模客戶中，我們通用計算和人工智能項目的產量增長仍處於正軌，預計本財年和 25 財年將持續增長。我們還繼續在下一代平台上取得進展，Credo 收到了多個每通道 100 億 AEC 項目的承諾。

We attribute much of our success on our customers to our system level approach to the AEC market. Our approach enables us to quickly respond to customers' requests and deliver innovative, feature-rich AEC solutions tailored to our customers' specific requirements. This approach has led us to making further progress with additional hyperscalers, who are in various stages of evaluation and qualification of our AECs. We've also seen a growing number of Tier 2 data center operators and service providers adopting Credo AEC solutions. We have earned meaningful revenue from these customers to date and expect this customer category to grow in the future.

我們將客戶的成功很大程度上歸功於我們針對 AEC 市場的系統級方法。我們的方法使我們能夠快速響應客戶的要求，並根據客戶的具體要求提供創新的、功能豐富的 AEC 解決方案。這種方法使我們與其他超大規模提供商取得了進一步的進展，這些超大規模提供商正處於我們 AEC 的評估和資格認證的各個階段。我們還看到越來越多的二級數據中心運營商和服務提供商採用 Credo AEC 解決方案。迄今為止，我們已經從這些客戶那裡獲得了可觀的收入，並預計該客戶類別未來將會增長。

In summary, we're happy with our progress with customers, and we're encouraged by the accelerating market demand for 50-gig and 100-gig lane rates for in-rack connectivity.

總之，我們對與客戶取得的進展感到滿意，並且對機架內連接的 50 吉和 100 吉通道速率不斷增長的市場需求感到鼓舞。

Regarding our optical solutions, within this market, we remain a disruptor. We leverage our core SerDes technology and customer-specific approach to deliver a compelling combination of performance, power and cost. Credo's optical solutions comprise DSPs, laser drivers and TIAs for 50-gig through 800-gig port applications, including optical transceivers and AOCs. We expect AI deployments to drive a large optical opportunity given the high-density rack-to-rack connections with AOCs or optical transceivers, in the back-end RDMA network within a cluster.

就我們的光學解決方案而言，在這個市場中，我們仍然是一個顛覆者。我們利用我們的核心 SerDes 技術和客戶特定的方法來提供令人信服的性能、功耗和成本組合。 Credo 的光學解決方案包括 DSP、激光驅動器和 TIA，適用於 50-gig 至 800-gig 端口應用，包括光收發器和 AOC。鑑於集群內後端 RDMA 網絡中與 AOC 或光學收發器的高密度機架到機架連接，我們預計人工智能部署將帶來巨大的光學機會。

I'm pleased that during Q1, we started the ramp of our 400-gig optical DSP for a U.S. hyperscaler. Our optical manufacturing partner is delivering 400-gig AOC solutions or an AI deployment at this hyperscaler. We expect the production ramp will continue throughout our fiscal '24 and into fiscal '25. We're also seeing demand restart from data centers in China, while too early to create meaningful expectations, Credo stands to benefit as spending returns in this market.

我很高興在第一季度，我們開始為美國超大規模企業提供 400 GB 光學 DSP。我們的光學製造合作夥伴正在該超大規模企業提供 400 兆 AOC 解決方案或人工智能部署。我們預計產量增長將持續到 24 財年和 25 財年。我們還看到中國數據中心的需求重新啟動，雖然目前還無法創造有意義的預期，但隨著該市場支出的回報，Credo 將從中受益。

Credo has designs in progress with several optical manufacturers and hyperscalers targeting next-generation 800-gig and 400-gig programs, and we expect ongoing progress in winning production commitments. Beyond the hyperscalers, we see additional optical opportunities with networking OEMs and service providers. We remain engaged with many partners and prospective customers for Fibre Channel, 5G, OTN and PON applications. The optical market seems to have turned the corner in the last couple of quarters. We aim to announce and demonstrate new optical solutions at upcoming optical trade shows later this calendar year, and we remain optimistic about our prospects for our optical solutions business.

Credo 正在與多家光學製造商和超大規模製造商合作，針對下一代 800 GIG 和 400 GIG 項目進行設計，我們預計在贏得生產承諾方面將不斷取得進展。除了超大規模企業之外，我們還看到了網絡 OEM 和服務提供商的更多光學機會。我們仍然與許多合作夥伴和潛在客戶就光纖通道、5G、OTN 和 PON 應用保持聯繫。過去幾個季度，光學市場似乎已經出現轉機。我們的目標是在今年晚些時候即將舉行的光學貿易展上宣布並展示新的光學解決方案，並且我們對光學解決方案業務的前景保持樂觀。

Within our Line Card PHY business, we're an established market leader with our line card price solutions for port speeds up to 1.6 terabits per second. We think our overall value proposition becomes even more compelling as the market is now accelerating for 100-gig per lane deployments. During the first quarter, we saw design engagements increasing specifically with our Screaming Eagle 1.6 terabit per second PHYs. We have strong customers' feedback that we have again achieved a leading combination of performance, signal integrity and power efficiency, and we've already had success in winning design commitments from leading networking OEMs and ODMs.

在我們的線卡 PHY 業務中，我們是公認的市場領導者，我們的線卡價格解決方案的端口速度高達每秒 1.6 太比特。我們認為，隨著市場現在每通道 100 千兆位部署的加速發展，我們的整體價值主張變得更加引人注目。在第一季度，我們看到設計參與度不斷增加，特別是我們的 Screaming Eagle 1.6 太比特每秒 PHY。客戶的強烈反饋表明，我們再次實現了性能、信號完整性和功效的領先組合，並且我們已經成功贏得了領先網絡 OEM 和 ODM 的設計承諾。

We've also made significant development progress with our customer-sponsored next-generation 1.6 terabits per second MACsec PHY, which we believe will extend our MACsec leadership well into the future for applications requiring encryption. Going forward, we expect to remain a leader in this category, given our core technology differentiation and deep collaborative relationships with leading networking OEMs and ODMs as well as hyperscalers directly.

我們還在客戶支持的下一代 1.6 太比特每秒 MACsec PHY 方面取得了重大開發進展，我們相信這將在未來將我們的 MACsec 領先地位擴展到需要加密的應用程序。展望未來，鑑於我們的核心技術差異化以及與領先網絡 OEM 和 ODM 以及超大規模廠商的直接深入合作關係，我們預計將繼續保持該類別的領導者地位。

Regarding our SerDes IP licensing and SerDes chiplet business, while we see quarter-to-quarter variability in revenue for our SerDes IP licensing business, our customer traction and funnel remained consistently strong. We've seen a breadth of wins in this category, including 50-gig and 100-gig lane speeds at process nodes ranging from 5-nanometer to 28-nanometer. End applications include networking, AI, 5G as well as a wide range of other applications.

關於我們的 SerDes IP 許可和 SerDes 小芯片業務，雖然我們看到 SerDes IP 許可業務的收入出現季度與季度的變化，但我們的客戶吸引力和渠道仍然保持強勁。我們已經在這一類別中看到了廣泛的勝利，包括 5 納米到 28 納米工藝節點的 50 G 和 100 G 通道速度。最終應用包括網絡、人工智能、5G 以及廣泛的其他應用。

In addition to IP, we've also developed SerDes chiplet solutions with 2 high-profile lead customers reaching production, Credo is beginning to see meaningful revenue in our fiscal '24. One of our lead customers is Tesla and as they've publicly presented, Credo is their connectivity partner for their Dojo supercomputer. delivering SerDes IP to their D1 ASIC and SerDes chiplets for off tile connectivity. We're receiving increased interest in our SerDes chiplets from additional customers and prospects, which supports industry expectations that chiplets will play an important future role in the highest performance designs.

除了 IP 之外，我們還開發了 SerDes 小芯片解決方案，兩家知名領先客戶已實現量產，Credo 在我們的 24 財年開始看到可觀的收入。我們的主要客戶之一是 Tesla，正如他們公開介紹的那樣，Credo 是他們 Dojo 超級計算機的連接合作夥伴。向其 D1 ASIC 和 SerDes 小芯片提供 SerDes IP，以實現片外連接。更多客戶和潛在客戶對我們的 SerDes 小芯片越來越感興趣，這支持了行業預期，即小芯片將在未來的最高性能設計中發揮重要作用。

To sum up, we're happy with our results in fiscal Q1, and we're encouraged about demand drivers for the balance of the year and beyond. Credo's position as a market leader for high-speed connectivity solutions has been years in the making. And the market acceleration towards high bandwidth solutions at low power with more networking density plays into our strengths.

總而言之，我們對第一財季的業績感到滿意，並且對今年剩餘時間及以後的需求驅動因素感到鼓舞。 Credo 多年來一直奠定了高速連接解決方​​案市場領導者的地位。市場加速向低功耗、更高網絡密度的高帶寬解決方案發展，這也發揮了我們的優勢。

We continue to expect sequential growth throughout fiscal '24. We believe our growth will be led by multiple customers across our range of connectivity solutions, which would result in a more diversified revenue base as we exit fiscal '24.

我們繼續預計整個 24 財年將實現連續增長。我們相信，我們的增長將由我們一系列連接解決方​​案中的多個客戶引領，這將在我們退出 24 財年時帶來更加多元化的收入基礎。

I'll now hand the call over to our CFO, Dan Fleming, who will provide additional details. Thank you.

我現在將把電話轉交給我們的首席財務官 Dan Fleming，他將提供更多詳細信息。謝謝。

Thank you, Bill, and good afternoon. I will first review our Q1 results and then discuss our outlook for Q2 of fiscal '24. As a reminder, the following financials will be discussed on a non-GAAP basis, unless otherwise noted.

謝謝你，比爾，下午好。我將首先回顧我們第一季度的業績，然後討論我們對 24 財年第二季度的展望。提醒一下，除非另有說明，否則以下財務數據將在非公認會計原則的基礎上進行討論。

In Q1, we reported revenue of $35.1 million, up 9% sequentially and down 24% year-over-year. Our IP business generated $2.8 million of revenue in Q1, down 51% sequentially and down 73% year-over-year. IP remains 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. While the mix of IP and product revenue will vary in any given quarter over time, our revenue mix in Q1 was 8% IP, below our long-term expectation for IP, which is 10% to 15% of revenue. We expect IP as a percentage of revenue to come in within our long-term expectations for fiscal '24.

第一季度，我們報告收入為 3510 萬美元，環比增長 9%，同比下降 24%。我們的 IP 業務第一季度收入為 280 萬美元，環比下降 51%，同比下降 73%。知識產權仍然是我們業務的戰略組成部分，但需要提醒的是，我們的知識產權業績可能會因季度而異，這主要是由現有合同的具體交付成果驅動的。雖然IP 和產品收入的組合在任何給定季度都會隨著時間的推移而變化，但我們第一季度的收入組合為IP 的8%，低於我們對IP 的長期預期，即佔收入的10%至15%。我們預計知識產權佔收入的百分比將在我們對 24 財年的長期預期之內。

Our product business generated $32.3 million of revenue in Q1, up 22% sequentially and down 10% year-over-year. Our team delivered Q1 gross margin of 59.8%. at the high end of our guidance range and up 160 basis points sequentially due to product mix. Our IP gross margin generally hovers near 100% and was 94.8% in Q1. Our product gross margin was 56.8% in the quarter, up 703 basis points sequentially and up 551 basis points year-over-year due principally to product mix.

我們的產品業務第一季度收入為 3230 萬美元，環比增長 22%，同比下降 10%。我們團隊第一季度的毛利率為 59.8%。由於產品組合的原因，該產品處於我們指導範圍的高端，並且連續上升 160 個基點。我們的IP毛利率總體徘徊在100%附近，第一季度為94.8%。本季度我們的產品毛利率為 56.8%，環比增長 703 個基點，同比增長 551 個基點，這主要歸功於產品組合。

Total operating expenses in the first quarter were $27.4 million, within our guidance range and up 1% sequentially and 21% year-over-year. Our year-over-year OpEx increase was a result of a 30% increase in R&D as we continue to invest in the resources to deliver innovative solutions.

第一季度的總運營費用為 2740 萬美元，在我們的指導範圍內，環比增長 1%，同比增長 21%。我們的運營支出同比增長是由於我們不斷投資資源以提供創新解決方案，研發費用增加了 30%。

Our SG&A was up 8% year-over-year as we built out public company infrastructure. Our operating loss was $6.4 million in Q1 compared to operating income of $5.3 million a year ago. Our operating margin was negative 18.3% in the quarter, compared to 11.5% last year due to reduced top line leverage. We reported a net loss of $4.7 million in Q1, compared to net income of $5.0 million last year.

隨著我們建設上市公司基礎設施，我們的銷售、管理及行政費用同比增長 8%。我們第一季度的營業虧損為 640 萬美元，而去年同期的營業收入為 530 萬美元。由於頂線槓桿率下降，本季度我們的營業利潤率為負 18.3%，而去年為 11.5%。我們報告第一季度淨虧損 470 萬美元，而去年淨利潤為 500 萬美元。

Cash flow from operations in the first quarter was $24.6 million, an increase of $36.8 million year-over-year, due largely to large receivables collected in the quarter. CapEx was $5.3 million in the quarter, driven by R&D equipment spending. And free cash flow was positive $19.3 million, an increase of $36.8 million year-over-year. We ended the quarter with cash and equivalents of $237.6 million, an increase of $19.8 million from the previous quarter.

第一季度運營現金流為 2460 萬美元，同比增加 3680 萬美元，主要是由於本季度收回了大量應收賬款。在研發設備支出的推動下，本季度資本支出為 530 萬美元。自由現金流為正 1,930 萬美元，同比增加 3,680 萬美元。本季度末，我們的現金及等價物為 2.376 億美元，比上一季度增加 1980 萬美元。

This increase in cash was a result of large receivables collected during the quarter. We remain well capitalized to continue investing in our growth opportunities, while maintaining a substantial cash buffer. Our accounts receivable balance decreased 43.5% sequentially to $28.0 million, while days sales outstanding decreased to 73 days, down from 140 days in Q4, due to collection of several large receivables. Our Q1 ending inventory was $40.8 million, down $5.2 million sequentially.

現金增加是由於本季度收回了大量應收賬款。我們仍然擁有充足的資本，可以繼續投資於我們的增長機會，同時保持大量的現金緩衝。我們的應收賬款餘額環比下降 43.5%，至 2,800 萬美元，而應收賬款周轉天數則從第四季度的 140 天減少至 73 天，原因是收回了幾筆大額應收賬款。我們第一季度期末庫存為 4080 萬美元，比上一季度減少 520 萬美元。

Now turning to our guidance. We currently expect revenue in Q2 of fiscal '24 to be between $42 million and $44 million, up 23% sequentially at the midpoint. We expect Q2 gross margin to be within a range of 58% to 60%. We expect Q2 operating expenses to be between $27 million and $29 million. We expect Q2 basic weighted average share count to be approximately 150 million shares.

現在轉向我們的指導。我們目前預計 24 財年第二季度的收入將在 4200 萬美元至 4400 萬美元之間，比中點連續增長 23%。我們預計第二季度毛利率將在 58% 至 60% 之間。我們預計第二季度運營支出將在 2700 萬美元至 2900 萬美元之間。我們預計第二季度基本加權平均股數約為 1.5 億股。

We are pleased to see FY '24 continue to play out as expected, while we see some near-term upside to our prior expectations, the rapid shift to AI workloads has driven new and broad-based customer engagement. We expect that this rapid shift will enable us to diversify our revenue throughout fiscal year '24 and beyond, as Bill alluded to. However, as new programs add new and existing customers ramp, we remain cautious about the back half of our fiscal year until we gain better visibility into forecasts.

我們很高興看到 24 財年繼續按預期發展，雖然我們看到近期比我們之前的預期有一些上行，但向人工智能工作負載的快速轉變推動了新的、廣泛的客戶參與。正如比爾提到的那樣，我們預計這種快速轉變將使我們能夠在整個 24 財年及以後實現收入多元化。然而，隨著新計劃增加新客戶和現有客戶的增加，我們對本財年後半段保持謹慎態度，直到我們更好地了解預測。

In summary, as we move forward through fiscal year '24, we expect sequential revenue growth, expanding gross margins due to increasing scale and improving product mix, and modest sequential growth in operating expenses. As a result, we look forward to driving operating leverage and returning to double-digit operating margins by Q4.

總之，隨著我們進入 24 財年，我們預計收入會環比增長，由於規模擴大和產品組合改善而導致毛利率擴大，以及運營費用環比小幅增長。因此，我們期待在第四季度提高運營槓桿並恢復兩位數的運營利潤率。

And with that, I will open it up for questions.

接下來，我將開放提問。

(Operator Instructions) And our first question comes from Toshiya Hari from Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Toshiya Hari。

Just one question from me. Bill, I was hoping you can talk about the revenue drivers for the current quarter, you're guiding revenue up 23%. It's really nice to see you guys reiterate the sequential growth in the back half as well. You talked extensively about your AEC business, obviously, your largest customer, your #2 customer, you seem to talk up the Tier 2 customers there as well. And then you sounded quite good on optical. So I was hoping you could rank order the drivers again for the current quarter on a sequential basis? And what you're most excited about as you go into the second half?

我只想問一個問題。 Bill，我希望您能談談本季度的收入驅動因素，您指導收入增長了 23%。很高興看到你們也重申後半段的連續增長。您廣泛談論了您的 AEC 業務，顯然，您最大的客戶，您的第二大客戶，您似乎也談論了那裡的二級客戶。然後你的光學聽起來相當不錯。所以我希望你們能按順序再次對當前季度的驅動程序進行排序？進入下半場時，你最興奮的是什麼？

So I can say that we're seeing strength really across the board with all of the product lines that we've got from AECs to optical to Line Card PHYs, even SerDes chiplets. It's hard for us to rank order in such a short period of time. We really see things -- we see things generally moving in the positive direction. I'll say that if we look at the year, I think we've been pretty clear thus far to say that our AEC business is not going to grow this year. And that's really due to the fact that our largest customer had a big reduction in the forecast that they have for the current year.

所以我可以說，我們看到了從 AEC 到光纖到線卡 PHY，甚至 SerDes 小芯片的所有產品線的全面實力。我們很難在這麼短的時間內排出順序。我們確實看到了事情——我們看到事情總體上朝著積極的方向發展。我想說的是，如果我們回顧這一年，我認為到目前為止我們已經非常明確地說我們的 AEC 業務今年不會增長。這實際上是因為我們最大的客戶大幅降低了今年的預測。

With that said, our other AEC business is growing quite rapidly as well as our other product lines. And so we see significant growth year-over-year if we subtract the number from our largest customer. So we feel pretty good about the way that demand is shaping up. I think we've got growing visibility for this year. And again, I see us really benefiting with the acceleration in lane rates generally, and it's really positively impacting all of our businesses.

儘管如此，我們的其他 AEC 業務以及我們的其他產品線都在快速增長。因此，如果我們減去最大客戶的數量，我們會看到同比顯著增長。因此，我們對需求的形成方式感到非常滿意。我認為今年我們的知名度越來越高。再說一遍，我認為我們確實受益於車道率的總體提高，而且它確實對我們所有的業務產生了積極的影響。

Sorry, one quick follow-up. Just the optical DSP business, you talked about the 400-gig opportunity with the U.S. hyperscaler and the production ramp in fiscal '24 through '25. You also talked about China coming back a little bit. Again, if you can -- I know it's a relatively small percentage of your business today, but how should we think about the contribution from your DSP business over the next, call it, 12 to 18 months?

抱歉，請快速跟進。就光學 DSP 業務而言，您談到了與美國超大規模企業的 400 GB 機會以及 24 財年至 25 財年的產量增長。您還談到了中國的回歸。再說一遍，如果可以的話，我知道這在您今天的業務中所佔的比例相對較小，但是我們應該如何考慮您的 DSP 業務在接下來（即 12 到 18 個月）的貢獻？

Right. So I've said in the past that one of my benchmarks for this business is when do we achieve 10% of our overall revenue. And I've signaled that we don't expect that to happen this year, but we've got all of the activity that would suggest we'll see that in FY '25. With that said, I feel good about where we are, the fact that we're executing to the ramp. We are seeing signs of life in China. We're qualified at multiple hyperscalers there. And as spending returns in that market, we will see benefit.

正確的。所以我過去說過，我對這個業務的基準之一是我們什麼時候能達到我們總收入的10%。我已經表示，我們預計今年不會發生這種情況，但我們已經開展了所有活動，表明我們將在 25 財年看到這種情況。話雖如此，我對我們所處的位置感到滿意，事實上我們正在向坡道執行。我們在中國看到了生命的跡象。我們在多個超大規模領域擁有資格。隨著該市場支出的回升，我們將看到收益。

Now as far as what Dan's got built in, for the year, it's not a big number for China. It's a relatively small number. But I think this year, we'll do a good job in approaching that 10% threshold, and then I think we're on track for next year.

現在就丹今年的建設而言，這對中國來說並不是一個大數字。這是一個相對較小的數字。但我認為今年我們會很好地接近 10% 的門檻，然後我認為明年我們就步入正軌了。

And our next question comes from Quinn Bolton from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

Bill, congratulations on the nice results. I wanted to see if you could give a little bit more color on what you see going on at the largest customer. Obviously, they had a big forecast change back in February. Wondering if the forecasts have held fairly stable since that time. And I think if I caught it right in your prepared remarks, you mentioned AECs, not only for general compute, but also AI at your largest AEC customer. And I'm wondering if you could share some more details there. I thought the AI opportunity with your largest AEC customers is really more of a calendar '24, maybe even calendar '25 opportunities. So wondering if things have pulled in on that front.

比爾，祝賀你取得了好成績。我想看看您能否對最大客戶的情況提供更多的信息。顯然，他們在二月份就對預測進行了重大調整。想知道自那時以來預測是否一直保持相當穩定。我想，如果我在您準備好的發言中沒聽錯的話，您提到了 AEC，不僅適用於通用計算，還適用於您最大的 AEC 客戶的人工智能。我想知道您是否可以在那里分享更多細節。我認為與您最大的 AEC 客戶合作的人工智能機會實際上更像是 24 世紀的機會，甚至可能是 25 世紀的機會。所以想知道事情是否在這方面有所進展。

So generally, at our largest customer, we're still hard at work executing to the backlog and forecast that we've got. We're doing a good job there. The recent information that we've gotten as to how they're using our current generation of AECs. We talked about AI deployments also with the need for front-end networks. And we've learned that there are certainly add employments at this customer that are using our switch cable as part of that front-end network. And so it's a relatively significant portion of the AECs that we're shipping today are going into AI applications, in addition to general compute. I think it's no secret that there has been a pretty big shift in their spend that we've seen over the last 6 months.

因此，總的來說，在我們最大的客戶中，我們仍在努力執行我們已有的積壓工作和預測。我們在那裡做得很好。我們最近獲得的有關他們如何使用我們當前一代 AEC 的信息。我們討論了人工智能部署以及對前端網絡的需求。我們了解到，該客戶肯定有更多的就業機會使用我們的交換機電纜作為前端網絡的一部分。因此，除了一般計算之外，我們今天交付的 AEC 中相對重要的一部分將用於人工智能應用。我認為過去 6 個月我們看到他們的支出發生了相當大的變化，這已經不是什麼秘密了。

And as I look long term, I think we're well positioned from the standpoint of both general compute and AI. I've talked a lot about a program that we've been working on for more than a year. And this is an internally developed program that's moving straight to 100 gig lanes. They're going to use AECs for inter-rack connectivity between the appliances and the Top-of-Rack switches for the back-end network. And then I -- so I expect us support to speak both the back-end and front-end network of those clusters as they're deployed. And for next-generation general compute, as they move to 50-gig lane speeds, I think we're well aligned with this customer on AEC solutions.

從長遠來看，我認為從通用計算和人工智能的角度來看，我們處於有利地位。我已經談論了很多關於我們已經研究了一年多的項目。這是一個內部開發的計劃，將直接發展到 100 個演出通道。他們將使用 AEC 來實現設備與後端網絡的架頂式交換機之間的機架間連接。然後我——所以我希望我們能夠在部署這些集群時支持他們的後端和前端網絡。對於下一代通用計算，隨著它們轉向 50 G 通道速度，我認為我們在 AEC 解決方案上與該客戶非常一致。

And maybe just 2 quick clarifications there. Was that AI internally developed AI rack? Is that still kind of -- should we be thinking kind of later in calendar '24 or early calendar '25, any update on timing? And can you guys share what percent of revenue, the largest customer was in the July quarter?

也許只有兩個簡單的澄清。那是AI內部開發的AI架嗎？這仍然是——我們是否應該在 24 日曆年晚些時候或 25 日曆早期考慮，時間上有任何更新嗎？你們能否分享一下，最大的客戶在七月季度佔收入的百分比是多少？

I'll let Dan answer that.

我會讓丹回答這個問題。

Yes. So from a 10% customer basis, what you'll see in a couple of days when we file our Q is that we had 3 10% customers, the largest of which was 41%. And so that largest customer has remained the largest customer over recent history. So obviously, there's still a material contributor to our overall revenue mix.

是的。因此，從 10% 的客戶基礎來看，幾天后，當我們提交問題時，您會看到我們有 3 個 10% 的客戶，其中最大的是 41%。因此，在最近的歷史中，最大的客戶仍然是最大的客戶。顯然，我們的整體收入組合仍然有實質性貢獻。

And then as far as your question about timing, the timing of these new programs is really hard to nail down. I can say that it's very highly prioritized within our customer, and we're very, very active in executing on that design and qualification. And so I think we've signaled that it's possible for it to -- for the early part of the ramp to happen within this fiscal year, but it's really more of a fiscal '25, overall round.

至於你關於時間安排的問題，這些新項目的時間安排確實很難確定。我可以說，我們的客戶非常重視這一點，我們非常非常積極地執行該設計和資格認證。因此，我認為我們已經表示，本財年的早期階段有可能發生，但這實際上更像是 25 財年的整體回合。

Okay. And then for Dan, congratulations on the gross margins, especially coming at the high end of the range with the IP mix being fairly low this quarter. You talked about margins benefiting from product mix, but it sounds like AECs are still pretty significant contribution to product revenues. Can you give us any more color on what's driving that margin strength within the product group?

好的。然後，對 Dan 來說，祝賀毛利率，特別是在本季度 IP 組合相當低的情況下，處於毛利率範圍的高端。您談到了產品組合帶來的利潤，但聽起來 AEC 對產品收入的貢獻仍然相當大。您能給我們更多關於推動產品組利潤率增長的因素嗎？

Well, it really is -- it goes back to the theme that you'll be picking up on here, which is a lot of the current trends really are emphasizing the uptick in the need for 50- and 100-gig lanes, and we're seeing that benefit across all of our product lines. We spoke -- if I were to call out a few, even though they might not be 10% of the overall revenue mix, both optical and chiplets contributed materially in the quarter, line card has always been a strong performer for us. So there's just broad-based favorable product mix that we experienced within Q1.

嗯，確實如此——這又回到了您將在這裡學到的主題，即當前的許多趨勢確實強調了對 50 和 100 場演出通道的需求的增加，我們我們所有的產品線都看到了這種好處。我們進行了交談——如果我要列舉一些，即使它們可能不佔整體收入組合的10%，光學和小芯片都在本季度做出了重大貢獻，但線卡對我們來說一直是表現強勁的公司。因此，我們在第一季度經歷了基礎廣泛的有利產品組合。

And as you rightly point out, our overall gross margin was 60%, and we achieved that while IP was only 8% of our revenue mix. So quite -- we're quite pleased with the performance of our operations group and the entire organization to achieve that.

正如您正確指出的那樣，我們的總體毛利率為 60%，而我們實現了這一目標，而知識產權僅占我們收入組合的 8%。所以，我們對我們的運營團隊和整個組織實現這一目標的表現非常滿意。

And our next question comes from Matt Ramsay from TD Cowen.

我們的下一個問題來自 TD Cowen 的 Matt Ramsay。

I guess my first question, there's a lot of things that I picked up in the commentary over the last 20 minutes, it seemed pretty positive. 3 different 10% customers, the guidance being what it was sort of above consensus and the expectation to grow for the remainder of the fiscal year. And so I guess I'm wondering if you could detail a little bit more, a, are you now expecting to sort of grow for the fiscal year of 24% over 23%?

我想我的第一個問題是，我在過去 20 分鐘的評論中發現了很多東西，看起來非常積極。 3 個不同的 10% 客戶，指導意見是高於共識的，並且是本財年剩餘時間增長的預期。所以我想我想知道您是否可以詳細說明一下，a，您現在預計本財年的增長率是否會超過 23%，達到 24%？

I know you guys have kind of set a ballpark of being flat when the reset happened in February and a lot's happened since. And it seems like with the momentum you're describing here, you should easily be able to grow this year, but then there was some commentary that you gave build maybe a little bit more caution in the back half of the year in other parts of the business. Maybe you could just kind of unpack that a little bit more. And if you have a new sort of expectation for the year, that would be helpful.

我知道你們在二月份重置時已經設定了一個平坦的大致目標，此後發生了很多事情。看起來，按照您在這裡描述的勢頭，今年您應該能夠輕鬆實現增長，但隨後有一些評論稱，您在今年下半年的其他地區可能會更加謹慎這生意。也許你可以稍微拆解一下。如果你對這一年有新的期望，那將會很有幫助。

Yes. Let me address that for you, Matt. Thanks for the question. We -- so as I mentioned in my prepared remarks, actually, we do remain cautious, as you say, in the back half, because a lot of the shift that's happened in hyperscale data center spend to AI. It's given us a lot of opportunity to engage with customers that are existing customers and new customers on new programs that we're having a lot of success in. But as these new customers and programs ramp, it's always difficult to really pinpoint exactly the impact or how quickly they will ramp. So we remain cautious in the back half as we're continuing to get better clarity in that back half.

是的。讓我為你解決這個問題，馬特。謝謝你的提問。正如我在準備好的發言中提到的，實際上，正如您所說，我們在後半段確實保持謹慎，因為超大規模數據中心發生的很多轉變都花在了人工智能上。它為我們提供了很多機會與現有客戶和新客戶進行互動，我們在新計劃中取得了很大成功。但隨著這些新客戶和計劃的增加，我們總是很難真正準確地確定其影響或者他們的增長速度有多快。因此，我們在後半段保持謹慎，因為我們在後半段繼續獲得更好的清晰度。

So if you were to boil that down to kind of simple math, Q1, we did what we did. Q2 as you take the midpoint of the guide, there is a little bit of upside over what the expectation was that we had set previously. But at this point, we're not giving further guidance in the outer half of the year.

所以，如果你把它歸結為一種簡單的數學，Q1，我們做了我們所做的。第二季度，當您採用指南的中點時，會發現比我們之前設定的預期有一點上行空間。但目前，我們不會在今年下半年給出進一步的指導。

Got it. And I understand the moving parts. I guess -- as my follow-up, I wanted to dig in a little bit more on the optical. Exciting to hear about the hyperscale win there. I'd be interested in 2 things. One, if you guys could spend a little bit more time maybe talking through the competitive advantage that you have in those products, particularly around sort of the N-1 advantage that you have in some other parts. Does that apply to optical?

知道了。我了解活動部件。我想——作為我的後續行動，我想在光學方面進行更多研究。很高興聽到超大規模的勝利。我對兩件事感興趣。第一，如果你們能多花一點時間，也許可以談談你們在這些產品中擁有的競爭優勢，特別是圍繞你們在其他一些部分擁有的 N-1 優勢。這適用於光學嗎？

And second, if you need to scale that optical business to support these large customer wins, what are the, I guess, the point that you really need to hit and the limitations on scaling or the big sort of projects ahead of you there? Because it seems like that's something that might need to ramp really quickly. And I'm just going to try to check on the capabilities there.

其次，如果您需要擴展光學業務以支持這些大客戶的勝利，我想您真正需要達到的重點是什麼以及擴展或您面前的大型項目的限制是什麼？因為看起來這可能需要快速提升。我將嘗試檢查那裡的功能。

Sure. So I would say that the N-1 factor that we've talked about definitely applies to optical. In this market, we are the disruptor. There is a strong incumbent position that Marvell has built and they've done a very good job with that business. In reality, the optical industry is somewhat of a commodity business in a sense that this is a very difficult market for our end customers to compete in. And so we play the role of disruptor and what we have to offer is excellent performance, excellent power and with a disruptive value proposition. And that's why we've been very much welcomed.

當然。所以我想說，我們討論過的 N-1 因素絕對適用於光學。在這個市場上，我們是顛覆者。 Marvell 已經建立了強大的現有地位，並且在該業務上做得非常好。事實上，光學行業在某種程度上是一個大宗商品行業，對於我們的最終客戶來說這是一個非常難以競爭的市場。因此我們扮演著顛覆者的角色，我們所提供的是卓越的性能、卓越的動力並具有顛覆性的價值主張。這就是我們受到熱烈歡迎的原因。

I feel great about where we are with this generation of product. It's been a long time coming that we've been able to prove absolute competitive performance in terms of bid air rates, absolute competitive power and delivering the kind of disruption that we expected with the N-1 process advantage that we've got. And so that's why we see a lot of activity. The Domino's, I think, will start to fall as one by one of our customers achieve production with hyperscalers.

我對我們這一代產品的現狀感到非常滿意。很長一段時間以來，我們已經能夠在投標空價、絕對競爭力以及通過我們擁有的 N-1 流程優勢提供我們預期的那種破壞方面證明絕對的競爭性能。這就是為什麼我們看到很多活動。我認為，隨著我們的一位客戶通過超大規模設備實現生產，多米諾骨牌將開始衰落。

And from the standpoint of your question about capacity, really no issues. I expect no issues in ramping to any kind of volumes that could be expected. This is a pretty straightforward manufacturing challenge for our team. My team is used to building millions of units and with our supply partners, we're very much ready from a wafer and from a substrate and from a packaging and test perspective. So I see no issues with our ability to hit the kind of volumes that we could potentially be seeing.

從你關於容量的問題的角度來看，確實沒有問題。我預計在增加到任何預期的數量時不會出現任何問題。對於我們的團隊來說，這是一個非常簡單的製造挑戰。我的團隊習慣於構建數百萬個單元，並且與我們的供應合作夥伴一起，從晶圓、基板以及封裝和測試的角度來看，我們已經做好了充分準備。因此，我認為我們達到預期銷量的能力沒有問題。

And our next question comes from Karl Ackerman from BNP Paribas.

我們的下一個問題來自法國巴黎銀行的卡爾·阿克曼。

Two questions, if I may. First, I guess, how are you thinking about the competitive landscape for AEC? I ask because our checks suggest that some of your peers have made incremental progress in that market, but really at the same time, it sort of validates the AEC opportunity as (inaudible) captures a growing portion of AI clusters. So your thoughts on that would be super helpful.

如果可以的話，有兩個問題。首先，我想，您如何看待 AEC 的競爭格局？我之所以這麼問，是因為我們的檢查表明，你們的一些同行在該市場上取得了漸進的進展，但實際上，它在某種程度上驗證了AEC 機會，因為（聽不清）捕獲了越來越多的人工智能集群。所以你對此的想法將會非常有幫助。

Sure. I think that naturally, we're going to see competition make progress. One of the things that I feel very good about is the way that we are organized in comparison to the groups of companies that are trying to compete with us. We're organized in a vertical fashion. I've got more than 100 people every day that come to work and they work on AEC system solutions. So in a sense, they're really the customer of our IC development team. And so what that enables us to do is be very, very flexible and very quickly respond to special requests from customers.

當然。我認為，我們自然會看到競爭取得進展。我感覺非常好的一件事是，與試圖與我們競爭的公司集團相比，我們的組織方式。我們以垂直方式組織。我每天有 100 多人來上班，他們致力於 AEC 系統解決方案。所以從某種意義上來說，他們確實是我們IC開發團隊的客戶。因此，我們能夠非常非常靈活地快速響應客戶的特殊要求。

When we had first thought about this market more than 5 years ago, we were thinking that it would be a standard products type of a market where we would put together a 400-gig on each end -- 400-gig connector on each end, and it would be kind of a standard IEEE type of standard that we'd be achieving. But the deeper that we go with this, I can tell you that all of the high-volume programs that we've talked about, all of them have special features that have been implemented. And so the customer base, we talked at length about the work that we did for Microsoft, enabling the dual-TOR architecture and delivering an intelligent AEC solution.

5 多年前，當我們第一次考慮這個市場時，我們認為這將是一個標準產品類型的市場，我們將在每端組裝一個 400 GB 的連接器——每端安裝 400 GB 的連接器，這將是我們要實現的一種標準IEEE 類型的標準。但隨著我們深入研究，我可以告訴你，我們討論過的所有大容量程序，都具有已實現的特殊功能。因此，對於客戶群，我們詳細討論了我們為 Microsoft 所做的工作，支持雙 TOR 架構並提供智能 AEC 解決方案。

The fact is others try to compete, others never achieved qualification and we're sole source for that program. And that trend continued. So every one of our high-volume relationships, every one of our high-volume discussions, the engineers understand there's an opportunity for innovation. And our team is well organized to achieve those differentiated features that make their rack design that much more valuable.

事實上，其他人試圖競爭，其他人從未獲得資格，而我們是該計劃的唯一來源。而且這種趨勢仍在繼續。因此，我們的每一個大量關係、每一次大量討論，工程師都明白這裡有一個創新的機會。我們的團隊組織良好，可以實現這些差異化功能，從而使他們的機架設計更有價值。

I think that, that's going to be a long-term advantage for us, and it's going to continue to be a competitive moat. As it relates to putting together a 400-gig kind of standard AEC or an 800-gig standard AEC, I think that's where we're going to start seeing competition make progress. But again, I think that's a smaller volume part of the market.

我認為，這將成為我們的長期優勢，並將繼續成為競爭的護城河。由於它涉及到將 400g 標準 AEC 或 800g 標準 AEC 組合在一起，我認為這就是我們將開始看到競爭取得進展的地方。但同樣，我認為這只是市場中較小的一部分。

Yes. No, I appreciate that, Bill. For my follow-up, it seems the opportunity in front of you for your discrete optical DSPs is broadening and can address optical -- active optical cable solutions. But I'm just curious, what are the margin implications as your discrete 400-gig DSP business ramps over the next couple of quarters?

是的。不，我很感激，比爾。對於我的後續內容，您面前的分立光學 DSP 的機會似乎正在擴大，並且可以解決光學有源光纜解決方案。但我只是好奇，隨著您的分立 400 吉 DSP 業務在接下來的幾個季度不斷增長，對利潤率有何影響？

Yes. We haven't -- the guidance we've given with regard to how our products kind of lay across the gross margin spectrum, we expect optical in the near and long term to be at the higher end of our product portfolio. Not too dissimilar from stand-alone optical companies that you've seen in the past and tracked in the past. Our Line Card PHY business is kind of right in the sweet spot as is some of these other emerging product groups like chiplets. And our AEC is a category is generally speaking, below that target margin. And just for level setting, there has been no change to our long-term target model. Our long-term gross margin of 63% to 65% is our expectation as these product lines mature and as we execute to our plans. And that's with IP contributing 10% to 15% of the overall product mix.

是的。我們還沒有就我們的產品在毛利率範圍內的分佈情況給出指導，我們預計光學產品在短期和長期內將處於我們產品組合的高端。與您過去見過和跟踪的獨立光學公司沒有太大不同。我們的線卡 PHY 業務正處於最佳位置，其他一些新興產品組（如小芯片）也是如此。一般來說，我們的 AEC 是一個低於目標利潤的類別。僅就水平設定而言，我們的長期目標模型沒有改變。隨著這些產品線的成熟以及我們執行計劃，我們的長期毛利率預計為 63% 至 65%。 IP 佔整個產品組合的 10% 到 15%。

And our next question comes from Suji Desilva from ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Suji Desilva。

I wanted to clarify some comments you had in the prepared remarks around. I think you said Tier 2 customers, you're making progress. I just want to understand, are you referring to customers beyond your first 2 hyperscale customers, 3, 4, 5 and 6, or referring to a second tier of cloud customers? And if it is the latter, is it traditional or newer AI, GenAI-type application?

我想澄清您在準備好的評論中提出的一些評論。我想你說的是二級客戶，你正在取得進展。我只是想了解，您指的是前 2 個超大規模客戶（3、4、5 和 6）之外的客戶，還是指第二層雲客戶？如果是後者，是傳統的還是更新的人工智能、GenAI 類型的應用？

So the -- we've mentioned before that we've engaged with multiple customers that are using our AECs. And these are not hyperscalers. These would be considered Tier 2. And also, we've had success with service providers as well. And so we mentioned that because the product category is, I think, really becoming quite solidified. When a new customer comes in and is looking at our solutions, it becomes almost like an automatic defective decision just based on the fact that you can't really manage Signal Integrity or just basic physical size with passive copper and optical is just different equation on power, double the power, double the price.

因此，我們之前提到過，我們已經與使用我們的 AEC 的多個客戶進行了合作。而且這些都不是超大規模的。這些將被視為第二層。而且，我們在服務提供商方面也取得了成功。所以我們提到這一點是因為我認為產品類別確實變得相當固定。當新客戶進來並查看我們的解決方案時，它幾乎就像一個自動的有缺陷的決定，僅僅基於這樣一個事實：您無法真正管理信號完整性，或者只是無源銅纜和光纖的基本物理尺寸只是不同的方程式功率，功率加倍，價格加倍。

And so it becomes a very easy decision. One of the announcements that we made in the last month or so was the work that we've done with Intel on their Habana Gaudi2 cluster that they've developed. And that's a great example of a customer that kind of quickly made the decision to make these intra-rack and rack-to-rack connections, the 3-meter type of connections with AECs. And there's a video that they did with us and it's on our website for you to look at. That's one example of this type of customer.

因此，這成為一個非常容易的決定。我們在上個月左右發布的公告之一是我們與英特爾合作開發的 Habana Gaudi2 集群。這是一個很好的例子，客戶很快就決定進行這些機架內和機架到機架的連接，即與 AEC 的 3 米類型連接。他們和我們一起製作了一個視頻，在我們的網站上供您觀看。這是此類客戶的一個例子。

We've talked in the past about Comcast. And within their infrastructure, they've got the need for switch racks. And if you look at the big routers that are part of their infrastructure, became a very easy decision for them to implement with Credo AECs. These are the types of examples. But we continue to work with what you would consider the hyperscalers, and we continue to make progress. So we're at different stages of evaluation, development -- different stages of engagement, but not at the point where I can report adding that third large customer.

我們過去曾討論過康卡斯特。在他們的基礎設施中，他們需要交換機架。如果您查看作為其基礎設施一部分的大型路由器，您會發現使用 Credo AEC 實施對他們來說是一個非常簡單的決定。這些是示例的類型。但我們繼續與您所認為的超大規模企業合作，並且我們繼續取得進展。因此，我們正處於不同的評估、開發階段——不同的參與階段，但還沒有到我可以報告增加第三個大客戶的程度。

Okay. That's definitely helpful. And then just to clarify sort of the landscape you're selling into, where some -- there is Ethernet, and there's certainly some InfiniBand out there. I mean just the notion that you guys might, at some point, serve the InfiniBand market or that wouldn't be a future opportunity and you expect Ethernet to take share versus InfiniBand. Just color here, some basic color would definitely help us.

好的。這絕對有幫助。然後只是為了澄清您所銷售的領域，其中有以太網，當然也有一些 InfiniBand。我的意思是，你們可能會在某個時候為 InfiniBand 市場提供服務，或者這不會是未來的機會，並且你們預計以太網會比 InfiniBand 搶占市場份額。只是在這裡上色，一些基本的顏色肯定會對我們有幫助。

Yes. I think that NVIDIA has done just a fantastic job. I'm not sure if we've seen too many back-to-back quarters like what they reported. And so there's no question that near-term InfiniBand is seeing great success for this back-end networks within the NVIDIA clusters. With that said, we're involved in many, many AI next-generation deployments, all of which are Ethernet. And I think if you rely on the market forecasters, they see a very clear coexistence between InfiniBand and Ethernet long term.

是的。我認為 NVIDIA 做得非常出色。我不確定我們是否已經看到太多像他們報導的那樣的連續季度。因此，毫無疑問，近期 InfiniBand 在 NVIDIA 集群中的後端網絡中取得了巨大成功。話雖如此，我們參與了很多很多人工智能下一代部署，所有這些都是以太網。我認為，如果你依賴市場預測者，他們會看到 InfiniBand 和以太網之間的長期共存非常明顯。

I think you can measure it by dollars, you can also measure by ports. And the expectation, I think, is that the number of ports Ethernet is going to exceed that in InfiniBand sometime in the next few years. So I think that we remain very bullish on Ethernet within AI clusters. There's no question about the amount of activity. And there's no surprise in the sense that the market is not going to be satisfied with a sole source provider.

我覺得可以用美元來衡量，也可以用港口來衡量。我認為，以太網的端口數量將在未來幾年的某個時候超過 InfiniBand 的端口數量。因此，我認為我們仍然非常看好人工智能集群中的以太網。活動量是沒有問題的。從某種意義上說，市場不會滿足於單一的來源提供商，這並不奇怪。

With that said, from the standpoint of our ability to do InfiniBand, there's no limitations. So I can say, in the optical space, with companies that are delivering both Ethernet and InfiniBand solutions and -- as far as the AEC standard would go, it wouldn't be a huge leap for us to develop those cables, if we feel like there's a market opportunity.

話雖如此，從我們的 InfiniBand 能力來看，沒有任何限制。所以我可以說，在光學領域，對於同時提供以太網和 InfiniBand 解決方案的公司來說，就 AEC 標準而言，如果我們認為開發這些電纜對我們來說不會是一個巨大的飛躍就像有市場機會一樣。

And our next question comes from Tore Svanberg from Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

And congratulations on 400 DSP win. Bill, on that topic, it's kind of interesting, right, because the 400-gig market is still in its early days, but we keep hearing from the industry that 800-gig is now ramping. So could you talk a little bit about your design wins and your ramps there? I mean, obviously, now you've got this one win and 400-gig that's going to ramp. But what about 800, when would that start to contribute more meaningfully to revenues?

恭喜 400 DSP 獲勝。 Bill，關於這個話題，這很有趣，對吧，因為 400 千兆位市場仍處於早期階段，但我們不斷從業界聽到 800 兆位市場正在蓬勃發展。那麼您能談談您的設計成果和坡道嗎？我的意思是，很明顯，現在你已經贏得了一場胜利，並且 400 場比賽的數量將會增加。但是 800 呢？什麼時候它才能開始對收入做出更有意義的貢獻呢？

So I think we need to look at the overall opportunity and maybe break it down between front-end and back-end networks. So I think from a front-end network perspective, the slower port speeds are still going to be very popular for a while. We see the market moving to 800 for the back-end networks in AI clusters that are moving to 100-gig line rates. And so the expectation for us on the 800-gig is that we probably see that as an FY '25 type of opportunity.

因此，我認為我們需要審視整體機會，並可能將其分解為前端和後端網絡。所以我認為從前端網絡的角度來看，較慢的端口速度在一段時間內仍然會非常流行。我們看到 AI 集群中後端網絡的市場規模正在向 800 個方向發展，線路速率正在向 100 G 的方向發展。因此，我們對 800 場演出的期望是，我們可能將其視為 25 財年的機會。

Great. And I also had a follow-up on the question about the sort of caution for the second half of fiscal '24. Obviously, there's a lot of irons in the fire here. I'm just wondering, is that caution kind of more tied to how these ramps go. I'm especially thinking about your second largest AEC customer. I mean, are you really concerned that it's going to grow a lot for the next few quarters and then it digests? Any further color you could add there would be great.

偉大的。我還對 24 財年下半年的謹慎態度問題進行了跟進。顯然，這裡有很多熨斗。我只是想知道，這種謹慎是否與這些坡道的運行方式更相關。我特別想到你們的第二大 AEC 客戶。我的意思是，你真的擔心它會在接下來的幾個季度大幅增長然後消化掉嗎？如果您可以添加任何其他顏色，那就太好了。

Yes. So I kind of smile thinking about the expectation that we set and talking about cautiousness, because if we look at the quarter-to-quarter growth rates, I think they're pretty exceptional as we climb back to an equal level or a larger level then we picked up prior to the big reset. So I think just beginning of the year, I think we had plenty of challenge to maintain that kind of a growth rate. And I feel good about how we look right now. I feel good about the fact that exiting this year, I expect us to be more diversified, not just on a customer basis, but also on a product line basis.

是的。因此，我微笑著思考我們設定的預期並談論謹慎，因為如果我們看一下季度增長率，我認為當我們回升到相同水平或更高水平時，它們是非常特殊的然後我們在大重置之前恢復。因此，我認為今年年初，我們面臨著很多挑戰來保持這種增長率。我對我們現在的樣子感覺很好。我對今年退出感到高興，我希望我們能夠更加多元化，不僅是在客戶基礎上，而且是在產品線基礎上。

So I kind of smiled, because we can take what is an exceptional story. And we've got to make sure that the treadmill doesn't get sped up to the point where expectations are too high. So I would just say that cautiousness is really wrapped in an incredible story of very fast growth quarter-to-quarter.

所以我笑了，因為我們可以接受一個非凡的故事。我們必須確保跑步機不會加速到期望過高的程度。因此，我只想說，謹慎確實包含在一個令人難以置信的季度快速增長的故事中。

Great. And then on the second ACE customer ramps, I think you said that's already in production is now sort of the main part of the ramp? Or does that come a little bit later?

偉大的。然後，在第二個 ACE 客戶坡道上，我想您說過已經投入生產，現在是坡道的主要部分？或者會晚一點嗎？

It comes a little bit later. These programs, there's various stages of qualification, early production, pilot production. And then really a significant ramp. And as we've signaled, we've been somewhat measured in what we've included in this year, and it looks like it's going to shape up as to be a much larger FY '25 ramp.

稍後會出現。這些項目有資格認證、早期生產、試生產等各個階段。然後確實是一個顯著的斜坡。正如我們所表示的，我們對今年所包含的內容進行了一定程度的衡量，看起來它將成為 25 財年更大的坡道。

And our question comes from Brett Simpson from Research.

我們的問題來自 Research 的 Brett Simpson。

Bill, I wanted to just ask on SerDes chiplets. Can you maybe just talk a little bit about how you see the landscape here over the next couple of years? And I think you called out Tesla as a initial launch customer for SerDes chiplets. And I think they've been talking publicly about sort of installing 100 exaflop cluster over the next sort of 5 or 6 quarters. Can you maybe just talk a bit about what specifically Credo is doing within this project? And more broadly, just talk about how you see (inaudible) for Credo, particularly now that TSMC is starting to get more and more involved in SoIC and looking at AI customers here?

Bill，我只想問一下 SerDes 小芯片的問題。您能否簡單談談您對未來幾年這裡的景觀的看法？我認為您將 Tesla 稱為 SerDes 小芯片的初始啟動客戶。我認為他們一直在公開討論在接下來的 5 到 6 個季度內安裝 100 exaflop 集群。您能否簡單談談 Credo 在這個項目中具體做了什麼？更廣泛地說，只是談談您如何看待（聽不清）Credo，特別是現在台積電開始越來越多地參與 SoIC 並在這裡尋找 AI 客戶？

Sure. So we're happy with the relationship that we've got with Tesla. This has been multiple years that we've been working with them. I'll first start with the fact that they licensed our 100-gig per lane SerDes IP. And in each one of the D1 chips, they've integrated 576 of those 100-gig lanes. So when we think about total throughput, that's 57.6 terabits per second for each one of their D1 ASICs. This is why we were so attracted to working on something that was so advanced, and it was even a long time ago.

當然。因此，我們對與特斯拉的關係感到滿意。我們與他們合作已經很多年了。我首先要從他們授權我們每通道 100 Gb SerDes IP 的事實開始。在每一款 D1 芯片中，他們都集成了 576 個 100G 通道。因此，當我們考慮總吞吐量時，每個 D1 ASIC 的吞吐量為每秒 57.6 太比特。這就是為什麼我們對如此先進的東西如此感興趣，甚至是很久以前的事了。

When we talk about 51.2 terabits per second switches, we talk about still, that's not expected for some time. And so I think from a SerDes IP standpoint, this is a great example of the type of work that our team can do in collaborating with the leading edge design team. If you look at their tile design, there's 25 of the D1 ASICs that are line a 5x5 matrix. And surrounding the tile are off-tile connectivity. And there's 40 of our chiplets on each one of their tiles. And the chiplets are 3.2 terabits per second, also 100-gig per lane on each side, one side is XSR to manage the die-to-die connectivity, and then off-chip is a longer reach -- or off tile is a longer reach. And so they have been public in talking about ramping. And so that's where we see meaningful revenue.

當我們談論每秒 51.2 太比特的交換機時，我們談論的是，在一段時間內預計不會出現這種情況。因此，我認為從 SerDes IP 的角度來看，這是我們團隊與領先設計團隊合作可以完成的工作類型的一個很好的例子。如果您查看他們的圖塊設計，就會發現有 25 個 D1 ASIC 排列成 5x5 矩陣。瓦片周圍是瓦片外連接。他們的每一塊瓷磚上都有 40 個我們的小芯片。小芯片的速率為每秒 3.2 太比特，每側每通道也為 100 GB，一側是 XSR 來管理芯片到芯片的連接，然後片外的距離更長，或者片外的距離更長抵達。因此，他們一直公開談論增產。這就是我們看到有意義的收入的地方。

The second customer that we worked with is Intel. And for their 12.8T switch, which is in production now also, we did chiplet design for them, also 3.2 terabits per second, a little bit different interconnect between die. This was what they call it, a wide bus, BOW, bunch of wires on the die-to-die connection and then off package was a longer reach SerDes. So we feel very good about that. We're seeing more customer interest.

我們合作的第二個客戶是英特爾。對於他們現在也在生產的 12.8T 交換機，我們為它們進行了小芯片設計，也是每秒 3.2 太比特，芯片之間的互連略有不同。這就是他們所說的，寬總線，BOW，芯片到芯片連接上的一堆電線，然後封裝外是一個更長的 SerDes。所以我們對此感覺非常好。我們看到客戶的興趣越來越濃厚。

When we talk about the chiplet business in general, there's lots of different kinds of chiplets. We're really specializing in connectivity. So it's really SerDes chiplets are our target. And we see that generally, we expect it to be a large opportunity. One of the things that we've talked about in the past is our efforts for PCIe Gen 6. That effort is well underway. We see a big opportunity within the servers, whether they're compute or AI. Internally, that network is managed with the PCIe standard.

當我們談論一般的小芯片業務時，有很多不同類型的小芯片。我們確實專注於連接性。所以 SerDes 小芯片確實是我們的目標。總的來說，我們預計這將是一個巨大的機會。我們過去討論過的事情之一是我們為 PCIe Gen 6 所做的努力。這項工作正在順利進行。我們在服務器中看到了巨大的機會，無論是計算還是人工智能。在內部，該網絡採用 PCIe 標准進行管理。

And so there's a bandwidth explosion that's happening inside the box. And so we see a large opportunity for PCIe retimers as well as chiplets. And people have talked about the UCIe standard as being a die-to-die interconnect. Off package would be PCIe. So we're definitely going to be in that market long term.

因此，盒子內部正在發生帶寬爆炸。因此，我們看到了 PCIe 重定時器和小芯片的巨大機遇。人們將 UCIe 標準視為芯片間互連。封裝外將是 PCIe。因此，我們肯定會長期留在這個市場。

And Bill, just to follow up on this. I mean a lot of chipmakers talking about next-gen architectures for AI, where they're physically separating out the IO from their main compute -- main accelerator. Can you talk a bit about what that means for Credo? How do you position for some of these next-gen architectures? And are you engaging with any of these sort of projects at this stage?

比爾，只是跟進此事。我的意思是，很多芯片製造商都在談論下一代人工智能架構，他們在物理上將 IO 與主要計算（主加速器）分開。您能談談這對 Credo 意味著什麼嗎？您如何定位其中一些下一代架構？您現階段是否正在參與此類項目？

Yes. So I think that my understanding is what I just spoke about, this UCIe standard that's being driven by Intel. We're part of that group. We're active. And this is defining a standard where you can do chip-to-chip connectivity and then off-chip, you can manage it in different ways. We think the right approach is to go with fast connections that are off package. And we're going to bring the same kind of advantages to that opportunity that we brought to everything we've been involved with, which is faster connectivity with better power efficiency. But that, I think, is what maybe you're referring to. That's the way that I perceive it. .

是的。所以我認為我的理解就是我剛才所說的，這個由英特爾推動的 UCIe 標準。我們是這個群體的一部分。我們很活躍。這定義了一個標準，您可以在其中進行芯片到芯片的連接，然後在片外，您可以以不同的方式對其進行管理。我們認為正確的方法是採用非包裝的快速連接。我們將為這個機會帶來與我們所參與的一切相同的優勢，即更快的連接和更好的能效。但我想，這可能就是你所指的。這就是我的看法。 。

And Dan, maybe just a final one. In terms of the guide for next quarter, I wanted to just ask about some of the licensors for your USB for V2. Are you guiding for any royalty revenues in the current quarter from some of these licensors or not?

丹，也許只是最後一個。就下個季度的指南而言，我只想詢問有關 USB for V2 的一些許可方。您是否對本季度來自某些許可方的特許權使用費收入進行了指導？

No, that's all kind of beyond the fiscal year -- the current fiscal year. We haven't given guidance on that yet.

不，這一切都超出了本財年——當前財年。我們尚未就此提供指導。

And our next question comes from Vijay Rakesh from Mizuho.

我們的下一個問題來自 Mizuho 的 Vijay Rakesh。

Bill and Dan, just a question on the AI side. I'm just wondering, I know you talked about maybe a bigger ramp in '24, '25, but -- you also talked about 5x content and getting 20 servers per rack as you go to. Any idea -- any thoughts on how -- what percent of your cables now go into -- on the AI side? And then as you look out, is the ramp on AI with Habana only? Or do you see opportunities that on the AMD MI300, et cetera, as well?

比爾和丹，只是人工智能方面的問題。我只是想知道，我知道您談到了 24 年、25 年可能會有更大的增長，但是 - 您還談到了 5 倍的內容以及每個機架 20 台服務器。有什麼想法嗎？關於如何——現在有多少百分比的電纜進入人工智能方面？有什麼想法嗎？然後你會發現，AI 的進步只是 Habana 帶來的嗎？或者您是否也看到 AMD MI300 等產品上的機會？

Yes, I can say that the opportunity is broad for us. Anything that's Ethernet, I think we see that as a big opportunity. As it relates to your question about overall percentages right now, we're really in high-volume production with one customer. And we've got a second lined up that is at the early stages of ramp. It's hard for me to really project without detailed forecast. But my expectation is that both of those customers will eventually buy our solutions for their AI platforms in a significant way. And so I would say I think general compute won't continue to be large for us, but I think that AI will ultimately be where you'll see the bulk of our cables really at 100-gig lane rates in the near future.

是的，我可以說我們的機會是廣闊的。任何與以太網有關的東西，我認為我們都將其視為一個巨大的機會。由於這與您目前有關總體百分比的問題有關，因此我們確實正在與一位客戶進行大批量生產。我們已經有第二個隊列，處於斜坡的早期階段。如果沒有詳細的預測，我很難真正進行預測。但我的期望是，這兩個客戶最終都會大量購買我們的人工智能平台解決方案。所以我想說，我認為通用計算對我們來說不會繼續很大，但我認為人工智能最終將成為您在不久的將來看到我們的大部分電纜真正達到 100G 通道速率的地方。

Got it. And good to see you guys diversifying 3 10% customers now. But I had a question on the optical IC the DSP side. I think most treat models probably have a flat calendar '24 and a big ramp in '25. Is that how we should look at it? Or do you see given the level of engagement on the optical IC side and it looks like things are going smoothly there, that ramp could get pulled in?

知道了。很高興看到你們現在使 3 10% 的客戶多樣化。但我有一個關於 DSP 端光學 IC 的問題。我認為大多數款待模型可能在 24 年有一個平坦的日曆，在 25 年有一個大的斜坡。我們應該這樣看待它嗎？或者您是否認為，考慮到光學 IC 方面的參與程度，並且看起來事情進展順利，該斜坡可能會被拉動？

Yes. I think we're comfortable with what we've discussed in the past. I think the activity that we've got right now is significant. It's leading to production commitments. We're seeing ramps begin. And I would say that I wouldn't really change the expectation. I think that FY '25 is really where we expect to get the kind of production traction that would allow us to hit that milestone I've talked about, which is 10% of our overall revenue.

是的。我認為我們對過去討論的內容感到滿意。我認為我們現在開展的活動意義重大。它導致了生產承諾。我們看到坡道開始了。我想說我不會真正改變期望。我認為 25 財年確實是我們期望獲得生產牽引力的地方，這將使我們能夠達到我談到的里程碑，即占我們總收入的 10%。

And our next question comes from Richard Shannon from Craig-Hallum Capital Group.

我們的下一個問題來自克雷格-哈勒姆資本集團的理查德·香農。

I guess both of my questions are probably on DSP optical side here. You've talked about kind of early-stage ramp here with a single hyperscaler. Kind of 2 questions here. What sense do you get of your share position or your leader or fast follower? And then to what degree are we seeing some follow-on with either additional designs with that customer or additional hyperscalers ramping there?

我想我的兩個問題可能都在 DSP 光學方面。您在這裡討論了使用單個超大規模器的早期階段。這裡有兩個問題。您對自己的份額、領導者或快速追隨者有何看法？然後，我們在多大程度上看到了該客戶的額外設計或其他超大規模的後續行動？

Yes. For this first hyperscaler, I would say that we're one of their partners for the optical DSP. Hard for me to say what share we're going to have at that hyperscaler, but I think it will be significant. And with others, I think we've got a lot of activity again, and it's really across the board for front-end and back-end networks. And I think we'll be in a position in the future to give more color on that.

是的。對於第一個超大規模處理器，我想說我們是他們的光學 DSP 合作夥伴之一。我很難說我們將在這個超大規模企業中佔據什麼份額，但我認為這將是重要的。對於其他人，我認為我們再次開展了大量活動，而且對於前端和後端網絡來說，這確實是全面的。我認為我們將來能夠在這方面提供更多的色彩。

Okay. Fair enough. I'm going to follow up on another question on DSP topic as well. I think it was Tore's question about 800-gig DSP. I think your response was something along the lines of revenues expected somewhere in fiscal '25 from that. What does that mean about in terms of having better visibility on wins there? Should we hear about that in the next quarter or 2? Or is it going to be more into calendar '24 before that happens?

好的。很公平。我還將跟進有關 DSP 主題的另一個問題。我認為這是 Tore 關於 800-g DSP 的問題。我認為您的回答與 25 財年預計的收入類似。這對於更好地了解那裡的勝利意味著什麼？我們應該在下一個或第二個季度聽到這個消息嗎？或者在那之前它會更多地進入日曆'24？

Yes. I think we'll give updates when we've got something significant to report. I know that the -- that's appreciated when we give more color, but I really want to make sure that we're locked in. And we've got many shots on goal, so to speak, many opportunities that we're working on right now.

是的。我想當我們有重要的事情要報告時我們會提供更新。我知道，當我們提供更多色彩時，我們會很感激，但我真的想確保我們鎖定目標。而且我們有很多射門機會，可以說，我們正在努力爭取很多機會現在。

There are no further questions at this time. Mr. Brennan, I'll turn the call back over to you.

目前沒有其他問題。布倫南先生，我會將電話轉回給您。

So thank you very much for the questions. We really appreciate the participation, and we look forward to following up on the call backs. Thank you.

非常感謝您提出的問題。我們非常感謝您的參與，並期待對回電進行跟進。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。