Credo Technology Group Holding Ltd (CRDO) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the Credo fiscal 2024 Q3 earnings conference call.

歡迎參加 Credo 2024 財年第三季財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Dan O’Neil.

我現在想把會議交給今天的發言人丹·奧尼爾。

Please go ahead.

請繼續。

Good afternoon.

午安.

Thank you for joining us on our fiscal 2024 third-quarter earnings call today, I'm joined by Bill Brennan, Credo's Chief Executive Officer; and Dan Fleming, our Chief Financial Officer.

感謝您今天參加我們的 2024 財年第三季財報電話會議，Credo 執行長 Bill Brennan 也參加了會議；和我們的財務長丹·弗萊明。

As a reminder, during the call, we will make certain forward-looking statements.

提醒一下，在電話會議期間，我們將做出某些前瞻性陳述。

These forward-looking statements are subject to risks and uncertainties that are discussed in detail in documents filed with the SEC, which can be found in the Investor Relations section of the company's website.

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向美國證券交易委員會提交的文件中進行了詳細討論，這些文件可以在公司網站的投資者關係部分找到。

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.

公司管理階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有重大差異的程度。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.

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。

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.

除非法律要求，否則本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.

此外，在這次電話會議中，我們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績效的重要指標。

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 US GAAP.

這些非公認會計原則財務指標是根據美國公認會計原則編制的財務績效的補充，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。

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.

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，您可以透過我們網站的投資者關係部分訪問該報告。

I will now turn the call over to our CEO.

我現在將把電話轉給我們的執行長。

Bill?

帳單？

Thank you, Dan.

謝謝你，丹。

I'll begin by providing an overview of our fiscal Q3 results and our outlook for the future.

首先，我將概述我們第三季的財務表現以及我們對未來的展望。

Our CFO, Dan Fleming, will then provide a detailed review of our Q3 financial results and share expectations for fiscal Q4.

然後，我們的財務長 Dan Fleming 將詳細審查我們第三季的財務業績和第四季度的財務預期。

For Q3, Credo reported revenue of $53.1 million and non-GAAP gross margin of 62.2%.

Credo 報告第三季營收為 5,310 萬美元，非 GAAP 毛利率為 62.2%。

These results and our future growth expectations continue to be driven by the accelerating opportunity for high speed and energy efficient connectivity solutions throughout the data infrastructure market.

這些結果和我們未來的成長預期將繼續受到整個數據基礎設施市場中高速、節能連接解決方案的加速機會的推動。

Our connectivity solutions include active electrical cables or AECs, optical DSPs, laser drivers, and TIAs, Line Card PHYs, SerDes Chiplets and SerDes IP licensing, each leveraging our SerDes technology.

我們的連接解決方案包括主動電纜或 AEC、光學 DSP、雷射驅動器和 TIA、線路卡 PHY、SerDes Chiplet 和 SerDes IP 許可，每個解決方案都利用我們的 SerDes 技術。

Core to Credo's success is our SerDes technology, which is the fundamental connectivity building block of all of our solutions.

Credo 成功的核心是我們的 SerDes 技術，它是我們所有解決方案的基本連接構建塊。

Credo continues to invest deeply in SerDes architectures that enable application-specific solutions optimized for speed, reach performance, energy efficiency, and cost.

Credo 持續深入投資 SerDes 架構，支援速度、效能、能源效率和成本進行最佳化的特定應用解決方案。

Our 100 gg per lane SerDes portfolio spans process geometries from 12 nanometer to 3 nanometer with optimized reach performance from the longest reach links to the most power sensitive data [] links for chiplets.

我們的每通道 100 gg SerDes 產品組合涵蓋從 12 奈米到 3 奈米的製程幾何形狀，並具有從最長到達鏈路到最功率敏感的小晶片資料鏈路的最佳化到達性能。

Credo will continue innovation for 200 gg per lane SerDes, as the opportunity to differentiate increases, specifically related to the optimization of trade-offs between process geometry, DSP architecture, performance, and energy efficiency.

隨著差異化機會的增加，Credo 將繼續針對每通道 200 gg SerDes 進行創新，特別是與製程幾何、DSP 架構、性能和能源效率之間的權衡優化相關。

Credo SerDes technology expertise combined with our system level customer-focussed design approach has led to our success with a diverse and growing set of industry leading customers.

Credo SerDes 技術專業知識與我們以客戶為中心的系統級設計方法相結合，使我們在多元化且不斷增長的行業領先客戶中取得了成功。

In 2023, the technology industry experienced an inflection point driven by generative AI applications.

2023年，科技業經歷了由生成式人工智慧應用驅動的拐點。

The acceleration in the deployment of AI clusters has put high-speed connectivity on center stage given the fundamental need for higher bandwidth.

鑑於對更高頻寬的基本需求，人工智慧叢集部署的加速使高速連接成為焦點。

For Credo this need for higher bandwidth translates to the demand for higher speed, higher density and more energy efficient connectivity solutions.

對於 Credo 來說，對更高頻寬的需求轉化為對更高速度、更高密度和更節能連接解決方案的需求。

This plays directly to Credo strengths and underpins our growth expectations.

這直接發揮了 Credo 的優勢並支撐了我們的成長預期。

I'll now provide more detail of our overall business.

我現在將提供我們整體業務的更多細節。

First, I'll discuss our AEC business, where Credo continue to build momentum during the third quarter.

首先，我將討論我們的 AEC 業務，Credo 在第三季繼續保持成長勢頭。

We believe our AEC leadership derives from our comprehensive systems level approach to the AEC market.

我們相信，我們的 AEC 領先地位源自於我們針對 AEC 市場的全面系統級方法。

We've built this from the ground up over many years, and as a result, we now have the ability to quickly innovate to support the diverse AEC needs of our customers.

多年來，我們從頭開始建立這項技術，因此，我們現在有能力快速創新，以滿足客戶多樣化的 AEC 需求。

Given the increasing single link speeds and the shortcomings of both passive copper cables and active optical cables and transceivers, we foresee continuing adoption of AECs for in-rack connectivity.

鑑於單鏈路速度的不斷提高以及被動銅纜和主動光纜及收發器的缺點，我們預計將繼續採用 AEC 進行機架內連接。

We expect US hyperscalers to remain the majority portion of AEC demand in the foreseeable future.

我們預計，在可預見的未來，美國超大規模企業仍將佔據 AEC 需求的大部分。

Many of these customers have distinct architectural requirements that demand innovation and tight collaboration between the engineering teams of Credo and the customer.

其中許多客戶都有獨特的架構要求，需要 Credo 工程團隊與客戶之間的創新和密切合作。

We're engaged at different stages with the five US hyperscalers as well as other global hyperscalers and Tier 2 data center operators.

我們在不同階段與五家美國超大規模企業以及其他全球超大規模企業和二級資料中心營運商進行了合作。

We've delivered a range of products with nonstandard optimized hardware and firmware features to meet our customers' needs for port speeds from 100 gg to 800 gg, depending on the customer application.

我們提供了一系列具有非標準優化硬體和韌體功能的產品，以滿足客戶對 100 gg 到 800 gg 連接埠速度的需求，具體取決於客戶應用。

Credo continues to work closely with our first two hyperscale customers delivering AEC solutions for both front-end and back-end Ethernet networks as each publicly highlighted during their conferences last quarter.

Credo 繼續與我們的前兩家超大規模客戶密切合作，為前端和後端乙太網路提供 AEC 解決方案，正如每位客戶在上季的會議上公開強調的那樣。

We're gaining better visibility with these customers into their near-term product ramps, and we're also engaged in a range of AEC solutions to address longer-term roadmaps.

我們正在讓這些客戶更了解他們的近期產品升級，並且我們還參與了一系列 AEC 解決方案來解決長期路線圖。

While advanced programs of this nature take time to achieve material deployment rates, we continue to expect an inflection point in the second half of our fiscal '25.

雖然這種性質的先進計劃需要時間才能實現材料部署率，但我們仍然預計 25 財年下半年會出現轉折點。

Credo is also working with additional US and global hyperscalers to develop 400 gg and 800 gg AEC solutions that we expect will yield significant revenue for Credo in the future as next-generation network architectures transition to AEC solutions.

Credo 也與其他美國和全球超大規模供應商合作開發 400 gg 和 800 gg AEC 解決方案，我們預計隨著下一代網路架構過渡到 AEC 解決方案，這些解決方案將在未來為 Credo 帶來可觀的收入。

Additionally, we see broader acceptance of AEC solutions among service providers and Tier 2 data centers.

此外，我們看到服務提供者和二級資料中心對 AEC 解決方案的接受度越來越高。

As a group, these customers represent a meaningful and growing revenue opportunity.

作為一個群體，這些客戶代表著有意義且不斷成長的收入機會。

Last quarter, we discussed the introduction of our P3 pluggable patch panel solution developed in collaboration with the lead service provider.

上季度，我們討論了與領先服務供應商合作開發的 P3 可插拔配線架解決方案的推出。

Over the past quarter, we've been encouraged by customer feedback that the combination of the P3 and the AECs can help overcome multiple networking challenges related to power and thermal distribution; lane speed disparities; and the trade-offs of operational efficiency, latency and power.

在過去的季度中，我們受到客戶回饋的鼓舞，即 P3 和 AEC 的組合可以幫助克服與電力和熱量分配相關的多種網路挑戰；車道速度差異；以及營運效率、延遲和功耗的權衡。

We expect to generate meaningful future revenue as the P3 enables AECs to be easily utilized in a more broad set of opportunities, thereby expanding our addressable market.

我們預計未來會產生有意義的收入，因為 P3 使 AEC 能夠在更廣泛的機會中輕鬆利用，從而擴大我們的潛在市場。

In summary, we were very pleased with our AEC progress in Q3.

總之，我們對第三季 AEC 的進展感到非常滿意。

And due to our expanding customer base and focus on innovation, we expect further progress in Q4, fiscal '25, and beyond.

由於我們不斷擴大的客戶群和對創新的關注，我們預計第四季度、25 財年及以後將取得進一步進展。

Now regarding our optical solutions, Credo continues to gain traction in the optical DSP market.

現在，關於我們的光學解決方案，Credo 繼續在光學 DSP 市場上獲得關注。

During the third quarter, we continued production shipments of optical DSPs to multiple global hyperscale end customers for a variety of applications across numerous port speeds.

在第三季度，我們繼續向多個全球超大規模最終客戶生產光學 DSP，用於跨多種連接埠速度的各種應用。

We closely target the combination of optical module partners and hyperscale end customers, and we're making progress on optical DSPs for 400 gg and 800 gg optical transceiver and AOC opportunities.

我們密切關注光模組合作夥伴和超大規模最終客戶的結合，並且我們正在針對 400 gg 和 800 gg 光收發器和 AOC 機會的光 DSP 方面取得進展。

Enabled by our SerDes design approach, Credo wins by delivering a compelling combination of performance, energy efficiency and value as well as focusing on innovative ways to solve complex customer needs.

在我們的 SerDes 設計方法的支持下，Credo 透過提供性能、能源效率和價值的引人注目的組合以及專注於解決複雜客戶需求的創新方法而獲勝。

Last quarter, we talked extensively about the industry call for action for better power efficiency for 800 gg and 1.6T optical solutions.

上個季度，我們廣泛討論了業界呼籲採取行動以提高 800 gg 和 1.6T 光學解決方案的能源效率。

As we discussed, we believe eliminating the DSP with the linear pluggable optics or LPO architecture is simply too far a leak, especially for 1.6T. Credo quickly responded with our innovative linear receive optics or LRO-DSP architecture that directly addresses the power challenge while delivering better signal integrity, maintaining industry standards, IEE compliance, and interoperability and extending to 1.6T solutions.

正如我們所討論的，我們認為用線性可插拔光學元件或 LPO 架構消除 DSP 的做法實在是太過分了，尤其是對於 1.6T 而言。 Credo 憑藉我們創新的線性接收光學元件或LRO-DSP 架構快速做出回應，該架構直接解決功率挑戰，同時提供更好的訊號完整性、維護行業標準、IEE 合規性和互通性，並擴展到1.6T 解決方案。

Since our discussion last quarter, we've made meaningful progress.

自從上季討論以來，我們取得了有意義的進展。

Our first 800 gg LRO-DSP partner has built and tested 800 gg optical modules, and the results are exactly as expected,9 successfully delivering on the promise of much reduced power and great signal integrity while overcoming the shortfalls of the aspirational LPO architecture.

我們的第一個800 gg LRO-DSP 合作夥伴已經建構並測試了800 gg 光學模組，結果完全符合預期，9 成功實現了大幅降低功耗和出色訊號完整性的承諾，同時克服了理想的LPO 架構的缺陷。

Next month at OFC in San Diego, we'll be demonstrating both 800 gg LRO-DSP and full DSP solutions, highlighting our progress.

下個月在聖地牙哥的 OFC，我們將展示 800 gg LRO-DSP 和完整的 DSP 解決方案，突出我們的進展。

We'll be demonstrating 800 gg solutions with five different optical module partners.

我們將與五個不同的光學模組合作夥伴一起示範 800 gg 解決方案。

Our 1.6T roadmap includes both LRO-DSP and full DSP solutions with 200 gg per lane speeds, with our top priorities being energy efficiency and signal integrity, which are both critical to achieve robust 1.6T optical solutions.

我們的 1.6T 路線圖包括 LRO-DSP 和每通道速度為 200 gg 的完整 DSP 解決方案，我們的首要任務是能源效率和訊號完整性，這對於實現強大的 1.6T 光學解決方案至關重要。

We believe the growth in our optical business will be primarily driven by US hyperscaler end customers with further contributions from global hyperscalers.

我們相信，我們光學業務的成長將主要由美國超大規模最終客戶推動，全球超大規模企業將進一步做出貢獻。

I'll now discuss our line card PHY business, which delivered another solid quarter in Q3.

我現在將討論我們的線路卡 PHY 業務，該業務在第三季度又實現了穩健的季度業績。

In this segment, our customers include networking, OEMs and hyperscalers, and our products include retimers, gearboxes, and MACsec PHYs for data encryption.

在這一領域，我們的客戶包括網路、OEM 和超大規模廠商，我們的產品包括重定時器、變速箱和用於資料加密的 MACsec PHY。

Our customers are the leaders in the space.

我們的客戶是該領域的領導者。

We have close working relationships, and our design wins typically have long lifecycles once they ramp to production, contributing nicely to our overall results.

我們擁有密切的工作關係，我們的設計成果一旦投入生產通常具有很長的生命週期，這對我們的整體成果做出了很好的貢獻。

In the upcoming months, we'll tape out our customer sponsored 5-nanometer 1.6T MACsec PHY, and our power optimized 1.6T retimers and gearboxes.

在接下來的幾個月中，我們將推出客戶贊助的 5 奈米 1.6T MACsec PHY，以及功率優化的 1.6T 重定時器和變速箱。

Credo is among the industry leaders for 50-gg and 100-gg per lane line card PHY applications.

Credo 是每個通道 50-gg 和 100-gg 線卡 PHY 應用的行業領導者之一。

We have many customers that have deployed our 50-gg per lane solutions in production, and we count more than ten customers designing in our 100-gg per lane Screaming Eagle line card PHYs.

我們有許多客戶在生產中部署了我們的每通道 50 gg 解決方案，並且我們統計有十多個客戶在我們的每通道 100 gg Screaming Eagle 線路卡 PHY 中進行設計。

And now turning to our IP and Chiplet business.

現在轉向我們的 IP 和 Chiplet 業務。

Our SerDes IP and SerDes Chiplet businesses continue to be a strategic component of our overall business.

我們的 SerDes IP 和 SerDes Chiplet 業務仍然是我們整體業務的策略組成部分。

These solutions enable our partners to address the ASIC market for next generation solutions.

這些解決方案使我們的合作夥伴能夠滿足下一代解決方案的 ASIC 市場需求。

Due to revenue recognition rules, our SerDes IP revenue can vary meaningfully from quarter to quarter, which is what we saw in Q3, and we will likely see in the upcoming quarters.

由於收入確認規則，我們的 SerDes IP 收入每季可能會有很大差異，這就是我們在第三季看到的情況，我們可能會在接下來的幾個季度看到這一情況。

Our funnel for SerDes licensing opportunities remains strong, bolstered by the increased opportunity on ASICs with high-speed SerDes for data center applications.

我們的 SerDes 授權機會管道仍然強勁，這得益於用於資料中心應用的高速 SerDes ASIC 機會的增加。

We have a comprehensive portfolio of SerDes IP for our ASIC customers, including 100-gg per lane SerDes across the broadest range of process geometries from 12 nanometers to 3 nanometers, and the broadest range of reach performance from long reach to die-to-die reach.

我們為 ASIC 客戶提供全面的 SerDes IP 產品組合，包括每通道 100 gg SerDes，涵蓋從 12 奈米到 3 奈米的最廣泛的製程幾何形狀，以及從長距離到晶片到晶片的最廣泛的覆蓋範圍性能抵達。

Our SerDes IP offering enables our ASIC partners to optimize their solutions for process geometry, reach and power.

我們的 SerDes IP 產品使我們的 ASIC 合作夥伴能夠優化其製程幾何、範圍和功率的解決方案。

Last quarter, our chiplet business was highlighted by a win with significant NRE at one of our leading customers for a next-generation, five nanometer chiplet solution which speaks loudly regarding our differentiated SerDes portfolio.

上個季度，我們的小晶片業務因在我們的領先客戶之一贏得重要的NRE 的勝利而備受矚目，該解決方案的下一代5 奈米小晶片解決方案充分體現了我們差異化的SerDes 產品組合。

When complete, Credo will be able to market and sell this chiplet to the broad market.

完成後，Credo 將能夠向廣闊的市場推銷和銷售該小晶片。

Overall, we remain optimistic about the prospects of the chiplet category, given our results to date, and due to our belief that chiplets will be a key enabler in the most advanced system solutions.

總體而言，鑑於我們迄今為止的結果，並且我們相信小晶片將成為最先進系統解決方案的關鍵推動者，我們對小晶片類別的前景保持樂觀。

In summary, we're pleased with our results for fiscal Q3, and we're optimistic about the increasing market demand for high-speed connectivity.

總之，我們對第三財季的業績感到滿意，並且我們對高速連接不斷增長的市場需求感到樂觀。

Credo's competitive advantage is driven by our focus and execution on our core SerDes technology, and that leads Credo to being one of few companies capable of delivering the necessary breadth of connectivity solutions at the highest speeds, while optimizing for energy efficiency and system cost.

Credo 的競爭優勢源自於我們對核心 SerDes 技術的專注和執行，這使得 Credo 成為少數能夠以最高速度提供必要的連接解決方案，同時優化能源效率和系統成本的公司之一。

For these reasons, we expect continued long-term growth across a diversified customer base, and a diversified set of connectivity applications.

基於這些原因，我們預計多元化的客戶群和多元化的連結應用程式將持續長期成長。

I'll now turn the call over to our CFO, Dan Fleming.

現在我將把電話轉給我們的財務長 Dan Fleming。

Dan will provide additional financial details, and then we'll be happy to take questions.

丹將提供更多財務詳細信息，然後我們將很樂意回答問題。

Thank you.

謝謝。

Thank you, Bill, and good afternoon.

謝謝你，比爾，下午好。

I'll first review our Q3 results and then discuss our outlook for Q4 of fiscal '24.

我將首先回顧我們第三季的業績，然後討論我們對 24 財年第四季的展望。

In Q3, we reported revenue of $53.1 million, up 20% sequentially, and down 2% year over year.

第三季度，我們報告營收為 5,310 萬美元，季增 20%，年減 2%。

Our IP business generated $1.3 million of revenue in Q3, down 83% sequentially, and down 90% year over year.

我們的 IP 業務第三季營收為 130 萬美元，季減 83%，年減 90%。

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 pre-existing or new contracts.

智慧財產權仍然是我們業務的策略部分，但需要提醒的是，我們的智慧財產權結果可能每個季度都會有所不同，這主要是由現有合約或新合約的具體交付成果所驅動的。

While the mix of IP and product revenue will vary in any given quarter over time, our revenue mix in Q3 was 2% IP, below our long-term expectations for IP, which is 10% to 15% of the revenue.

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，但我們在第三季度的收入組合為2% IP，低於我們對IP 的長期預期，即佔收入的10%至15%。

We expect IP, as a percentage of revenue to be within our long term expectations for fiscal '24 and near the high-end of the range.

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，並接近該範圍的高端。

Our product business generated $51.8 million of revenue in Q3, up 41% sequentially and up 24% year over year.

我們的產品業務在第三季創造了 5,180 萬美元的收入，季增 41%，年增 24%。

Our top three end customers were each greater than 10% of our revenue in Q3.

我們第三季的前三大終端客戶均占我們營收的 10% 以上。

Our team delivered Q3 non-GAAP gross margin of 62.2% above the high-end of our guidance range and up 235 basis points sequentially.

我們團隊的第三季非 GAAP 毛利率為 62.2%，高於我們指引範圍的上限，比上一季成長 235 個基點。

Our IP non-GAAP gross margin generally hovers near 100%, and was 92.7% in Q3.

我們的 IP 非 GAAP 毛利率整體徘徊在 100% 附近，第三季為 92.7%。

Our product non-GAAP gross margin was 61.5% in the quarter, up 877 basis points sequentially, due to a large increase in product NRE revenue, and up 1,420 basis points year over year.

由於產品 NRE 收入大幅成長，本季我們的產品非 GAAP 毛利率為 61.5%，較上季成長 877 個基點，較去年同期成長 1,420 個基點。

Total non-GAAP operating expenses in the third quarter were $30.6 million, above the high-end of our guidance range, up 13% sequentially and up 19% year-over-year.

第三季非 GAAP 營運支出總額為 3,060 萬美元，高於我們指引範圍的上限，季增 13%，年增 19%。

Our OpEx increase was a result of 24% year-over-year increase in R&D as we continue to invest in the resources to deliver innovative solutions.

我們的營運支出成長是由於我們持續投資資源以提供創新解決方案，研發費用較去年同期成長 24%。

Our SG&A was up 12% year over year.

我們的 SG&A 年成長 12%。

Our non-GAAP operating income was $2.4 million in Q3, compared to non-GAAP operating loss of $0.7 million last quarter, due to increased topline leverage.

由於營收槓桿增加，我們第三季的非 GAAP 營業收入為 240 萬美元，而上季度的非 GAAP 營業虧損為 70 萬美元。

Our non-GAAP operating margin was 4.6% in the quarter compared to a non-GAAP operating margin of negative 1.7% last quarter, a sequential increase of 622 basis points.

本季我們的非 GAAP 營業利潤率為 4.6%，而上季的非 GAAP 營業利潤率為負 1.7%，季增 622 個基點。

We reported non-GAAP net income of $6.3 million in Q3, compared to non-GAAP net income of $1.2 million last quarter.

我們報告第三季非 GAAP 淨利潤為 630 萬美元，而上季非 GAAP 淨利潤為 120 萬美元。

Cash flow used in operations in the third quarter was $1 million.

第三季營運使用的現金流為 100 萬美元。

CapEx was $5.1 million in the quarter driven by R&D equipment and production mask spending.

在研發設備和生產掩模支出的推動下，本季資本支出為 510 萬美元。

And free cash flow was negative $6.1 million, an increase of $3.1 million year over year.

自由現金流為負 610 萬美元，年增 310 萬美元。

We ended the quarter with cash and equivalents of $409.1 million, an increase of $168.6 million from the second quarter.

本季末，我們的現金及等價物為 4.091 億美元，比第二季增加 1.686 億美元。

This increase in cash came from the net proceeds of our successful follow-on offering of shares completed in December of 2023.

這筆現金成長來自我們於 2023 年 12 月成功完成的後續股票發行的淨收益。

We remain well capitalized to continue investing in our growth opportunities while maintaining a substantial cash buffer.

我們仍然擁有充足的資本，可以繼續投資於我們的成長機會，同時保持大量的現金緩衝。

Our accounts receivable balance increased 36.8% sequentially to $44.8 million, while day sales outstanding increased to 77 days, up from 68 days in Q2.

我們的應收帳款餘額較上季成長 36.8%，達到 4,480 萬美元，應收帳款天數從第二季的 68 天增加到 77 天。

Our Q3 ending inventory was $31.5 million, down $4.3 million sequentially.

我們第三季期末庫存為 3,150 萬美元，比上一季減少 430 萬美元。

Now, turning to our guidance, we currently expect revenue in Q4 of fiscal '24 to be between $59 million and $62 million, up 14% sequentially at the midpoint.

現在，轉向我們的指導，我們目前預計 24 財年第四季的營收將在 5,900 萬美元至 6,200 萬美元之間，比中點連續成長 14%。

We expect Q4 non-GAAP gross margin to be within a range of 64% to 66%.

我們預計第四季非 GAAP 毛利率將在 64% 至 66% 之間。

We expect Q4 non-GAAP operating expenses to be between $33 million and $35 million, and we expect Q4 diluted weighted average share count to be approximately 180 million shares.

我們預計第四季非公認會計準則營運費用將在 3,300 萬美元至 3,500 萬美元之間，我們預計第四季度攤薄加權平均股數約為 1.8 億股。

We are pleased to see fiscal year '24 playing out as expected.

我們很高興看到 24 財年的表現符合預期。

The rapid shift to AI workloads has driven new and broad-based customer engagement, which has continued to enable us to diversify our revenue through fiscal year '24 and beyond.

向人工智慧工作負載的快速轉變推動了新的、廣泛的客戶參與，這使我們能夠在 24 財年及以後繼續實現收入多元化。

As a result, we look forward to driving operating leverage in the coming quarters.

因此，我們期待在未來幾季提高營運槓桿。

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

接下來，我將開放提問。

(Operator Instructions) Toshiya Hari, Goldman Sachs.

（操作員指令）Toshiya Hari，高盛。

Hi, good afternoon.

嗨，下午好。

Thank you so much for taking the question.

非常感謝您提出這個問題。

Bill, I wanted to ask you how you're thinking about your business over the next year or so.

比爾，我想問你對未來一年左右的業務有何看法。

I thought the way you framed the AEC opportunity and the optical DSP opportunity, both in the near term and the medium term was pretty consistent with how you framed it three months ago.

我認為您在近期和中期建立 AEC 機會和光學 DSP 機會的方式與您三個月前建造的方式非常一致。

But I'm curious, just given the significant increase in AI spending infrastructure broadly, have you seen any of your customer projects either get pulled in or the sizing increase over the past 90 days or the way you're thinking about the additional customer in AEC, the engagements on the DSP side, are they pretty consistent with 90 days ago?

但我很好奇，考慮到人工智慧支出基礎設施的大幅成長，您是否看到您的任何客戶專案在過去 90 天內被拉入或規模增加，或者您考慮額外客戶的方式AEC、DSP方面的參與度與90天前是否相當一致？

And then I have a follow up.

然後我有一個後續行動。

Generally speaking, it's pretty consistent with what we've communicated in the past.

總的來說，這與我們過去溝通的內容非常一致。

We're really in the early innings of many of the opportunities, and we're going to see some variability as each one of these things ramp.

我們確實處於許多機會的早期階段，隨著每一個機會的增加，我們將看到一些變化。

And I can say that we feel great about the fact that we've got more irons in the fire than ever before.

我可以說，我們對我們比以往任何時候都有更多的熨斗感到高興。

But I think from a revenue profile standpoint, we've been pretty consistent in saying that we see an inflection point in the second half of fiscal '25.

但我認為，從收入狀況的角度來看，我們一直一致表示，我們在 25 財年下半年看到了一個轉捩點。

So really no change.

所以真的沒有改變。

Got it.

知道了。

Okay, thank you.

好的謝謝。

And then a follow up on gross margins for Dan.

然後是丹的毛利率的後續情況。

In the quarter, even if you exclude the increase in NRE revenue, your product gross margins I thought were pretty good on a sequential basis.

在本季度，即使排除 NRE 收入的成長，我認為你們的產品毛利率環比也相當不錯。

They improved quite nicely.

他們進步得相當好。

What were the drivers there?

那裡的司機是什麼？

And if you can provide a bridge from 62.2% last quarter to, I guess, 65% at the midpoint for this quarter, that would be helpful.

如果你能提供一個從上個季度 62.2% 到本季中點 65% 的橋樑，那將會很有幫助。

And is there anything kind of one time in nature embedded in the 65% for this quarter?

本季的 65% 是否包含某種一次性的東西？

Thank you.

謝謝。

Yes.

是的。

That's a great pickup on your part because as we look at things, we thought the hidden story is really that due to increasing scale and product mix, if you exclude NRE from our product gross margin, it was up 328 basis points sequentially, as you say, from 50% to 53%.

這對你們來說是一個很大的提升，因為當我們審視事物時，我們認為隱藏的故事實際上是，由於規模和產品組合的增加，如果您將NRE 從我們的產品毛利率中排除，它會連續上升328 個基點，因為您比方說，從 50% 到 53%。

And that's in line with our messaging that we've given historically.

這與我們歷史上所發出的信息是一致的。

We think we're well on track for attaining our long term gross margin expectation, which is again 63% to 65% within the next two years.

我們認為，我們預計將實現長期毛利率預期，即未來兩年內再次達到 63% 至 65%。

And this is -- a key part of that story is increasing product margins.

這個故事的關鍵部分是提高產品利潤。

Now, when it comes to Q4 -- the other thing I mentioned or alluded to, IP in Q3 was only 2% of our revenue mix.

現在，說到第四季——我提到或提到的另一件事，第三季的智慧財產權僅占我們收入組合的 2%。

Yet we said in our prepared remarks that we expect for the full year that IP as a percentage of the overall revenue mix will be at the high end of our long term range of 10% to 15%.

然而，我們在準備好的發言中表示，我們預計全年知識產權佔整體收入組合的百分比將處於我們長期範圍的高端，即 10% 至 15%。

So if you look year to date, IP has only been 9% of our overall revenue mix.

因此，如果你看看今年迄今為止，IP 僅占我們整體收入組合的 9%。

So you could expect Q4 to be very strong in terms of IP deliverables, which again, we recognize revenue upon those deliverables of IP databases under ASC 606.

因此，您可以預期第四季度在 IP 可交付成果方面將非常強勁，我們再次根據 ASC 606 下的 IP 資料庫可交付成果確認收入。

So, IP has been quite variable, quarter-to-quarter.

因此，IP 每個季度的變化都很大。

Throughout FY'24, it's been highly variable.

整個 24 財年，情況變化很大。

It's been very illustrative of that pattern.

這非常能說明這種模式。

So in a sense, you might say the IP portion contributing to the gross margin being 65% at the midpoint, that's a variable part of it.

因此，從某種意義上說，您可能會說 IP 部分對毛利率的貢獻為中點的 65%，這是其中的可變部分。

But having said that, the underlying thing to focus on is really product gross margin exclusive of NRE.

但話雖如此，真正需要關注的根本問題是不包括 NRE 的產品毛利率。

And the trend there has been very favorable to us due to product mix and increasing scale.

由於產品組合和規模不斷擴大，那裡的趨勢對我們非常有利。

Karl Ackerman, BNP Paribas.

卡爾‧阿克曼，法國巴黎銀行。

Yes.

是的。

Thank you, gentlemen.

謝謝你們，先生們。

You tend to not be dictated by this seasonal variations of market each quarter.

您往往不會受到每季市場季節性變化的影響。

But since you happen to sell primarily into front end traditional server market applications, I'm curious to hear whether you are seeing a cyclical recovery in traditional servers as new data centers are being built to really ameliorate the power limitation of installing GPUs, and therefore you are seeing that happen in ramp now.

但由於您碰巧主要銷售前端傳統伺服器市場應用程序，我很好奇您是否看到傳統伺服器出現週期性復甦，因為正在建立新的資料中心以真正改善安裝 GPU 的功率限制，因此您現在看到這種情況發生在坡道上。

So, I think that the way that we view our AEC business is really broken out into two parts, front-end networks and back-end networks.

所以，我認為我們看待 AEC 業務的方式實際上分為兩部分：前端網路和後端網路。

And so the front-end connections that we're making for general compute as well as AI, they look very similar in a sense.

因此，我們為通用計算和人工智慧所做的前端連接，它們在某種意義上看起來非常相似。

I can tell you that the most history that we've got on the front end network connections is really with our first AEC customer, Microsoft.

我可以告訴您，我們在前端網路連線方面擁有最多的歷史記錄實際上是與我們的第一個 AEC 客戶 Microsoft 合作的。

And if we think back on history, the number of front-end connections associated with AI clusters is fewer in an overall volume sense because you've got one front-end network connection for maybe six to eight GPUs, whereas there's one connection for every general compute server in comparison.

如果我們回顧歷史，從整體體積來看，與 AI 叢集相關的前端連接數量較少，因為一個前端網路連接可能連接六到八個 GPU，而每個 GPU 都有一個連接。相比之下，通用計算伺服器。

And so, we saw a big reduction in the forecast, which would clearly imply that they made a huge pivot towards AI.

因此，我們看到預測大幅下降，這顯然意味著他們大力轉向人工智慧。

I can say that we've always expected a rebalancing.

我可以說我們一直期待著重新平衡。

And based on forecasts, I think we see that coming within the next 12 months, probably back-end weighted on the 12 month forecast.

根據預測，我認為我們會在未來 12 個月內看到這種情況，可能會根據 12 個月的預測進行後端加權。

So I do think that we're seeing some of that movement.

所以我確實認為我們正在看到一些這種變化。

But again, we don't really get super specific visibility on that.

但同樣，我們並沒有真正獲得超級具體的可見性。

I see.

我懂了。

Thanks for that.

感謝那。

For my follow up, I was hoping you could address how large is your chiplet business today?

對於我的後續行動，我希望您能解決一下您目前的小晶片業務有多大？

And is that broadening into multiple customers or is it still dominated by a single customer at this point?

是擴展到多位客戶還是目前仍由單一客戶主導？

Thank you

謝謝

We've got two customers in production now.

我們現在有兩個客戶正在生產。

One is Tesla; and one is Intel.

一是特斯拉；其中之一是英特爾。

And both have been publicly discussed.

兩者都已被公開討論。

The expectation that we've had, we've been working on chiplets for several years.

正如我們所抱持的期望，我們多年來一直致力於小晶片的開發。

And we've been bullish on the space, probably before the industry at large was talking about it.

我們一直看好這個領域，可能是在整個行業開始談論它之前。

I think that the discussion that we've had about this recently is that it's become a nice portion of our business.

我認為我們最近對此進行的討論是，它已成為我們業務的一個很好的部分。

But if I think about long term, and I think about how the different businesses will break down, this is not going to probably rival the AEC business that we've got or the optical DSP business long term.

但如果我考慮長遠，考慮不同的業務將如何分解，從長遠來看，這可能無法與我們現有的 AEC 業務或光學 DSP 業務競爭。

So, it'll be a smaller component of our business, but still very meaningful.

因此，這將是我們業務的較小組成部分，但仍然非常有意義。

And to answer the second part of your question, we've got a handful of customers that are engaging with us for chiplet designs.

為了回答你問題的第二部分，我們有一些客戶正在與我們合作進行小晶片設計。

Understand that chiplets we design will be generally available to the market, even though typically we have an initial sponsor that moves us in a direction on a given spec.

了解我們設計的小晶片將普遍推向市場，儘管通常我們有一個初始贊助商來推動我們朝著給定規格的方向發展。

Tore Svanberg, Stifel.

托雷‧思文凱 (Tore Svanberg)、史蒂菲爾 (Stifel)。

Yes, thank you.

是的，謝謝。

Bill, I was hoping you could update us on the AEC market, perhaps just more in sort of form factor, right?

Bill，我希望您能為我們介紹 AEC 市場的最新情況，也許只是外形方面的更新，對吧？

So it's very clear that the AEC market is heating up.

很明顯，AEC 市場正在升溫。

We're starting to see more competitors in the market, but everybody seems to take a different approach on the form factor, system versus chip.

我們開始在市場上看到更多的競爭對手，但每個人似乎在外形、系統與晶片方面都採取了不同的方法。

So, I was hoping you could update us on where you see the market evolving over the next 18 months to 24 months.

因此，我希望您能向我們介紹您對未來 18 個月至 24 個月市場發展的最新看法。

And again, filling the entire system is still the way to go?

再說一次，填滿整個系統仍然是可行的方法嗎？

Yeah, I think that the key for us is that we see the work required to bring an AEC to production with great performance, high quality, high reliability.

是的，我認為對我們來說關鍵是我們看到了將 AEC 投入生產所需的工作，並具有出色的性能、高品質和高可靠性。

It's really the same whether one company is taking responsibility like we are or if many companies are trying to work together and sharing responsibility.

無論是一家公司像我們一樣承擔責任，還是許多公司試圖共同努力、分擔責任，這實際上都是一樣的。

Our feeling has always been that the most effective approach to bringing these products to market quickly is to take full ownership of all aspects of the hardware and the firmware design, the entire process to qualify and bring a product to production.

我們一直認為，將這些產品快速推向市場的最有效方法是完全掌控硬體和韌體設計的各個方面，以及產品合格和投入生產的整個過程。

And then ultimately, be the responsible party for directly servicing and supporting during production.

最終，成為生產過程中直接服務和支援的責任方。

And so, there's no lack of clarity for us and our customers as to who owns the responsibility during any stage.

因此，我們和我們的客戶在任何階段都不清楚誰承擔責任。

And as a result, we've been first to samples several times and first to qualification now with several different customers.

因此，我們多次率先提供樣品，現在又率先與多位不同的客戶進行資格認證。

And so there's different approaches, but I think there's always going to be some signal loss as it relates to multiple parties trying to respond to urgent needs within the customer base.

因此有不同的方法，但我認為總是會有一些訊號遺失，因為它涉及多方試圖回應客戶群內的緊急需求。

And so we're feeling quite good about the efforts that we've made over the last several years in not only developing customer relationships but also just developing a core capability.

因此，我們對過去幾年在發展客戶關係和發展核心能力方面所做的努力感到非常滿意。

I estimate that we have more than 100 people that are dedicated to our AEC business at a system level.

我估計我們有超過 100 名員工在系統層面致力於我們的 AEC 業務。

And so, we can also talk about -- if we want to make a direct apples-to-apples comparison, it's important to point out that our core SerDes, which is a key point that I want to emphasize, if we're head to head, apples to apples, we're always going to have the most energy efficient solutions, just given the advantages that we bring with our SerDes technology.

因此，我們也可以討論 - 如果我們想要進行直接的同類比較，重要的是要指出我們的核心 SerDes，這是我想強調的一個關鍵點，如果我們領先的話總而言之，鑑於我們的SerDes 技術帶來的優勢，我們始終會擁有最節能的解決方案。

Yes, that's really helpful.

是的，這確實很有幫助。

And as my follow up and on PAM4 DSP, and not to steal away thunder from OFC, but you've had the LPO DSP out now for a few months.

作為我對 PAM4 DSP 的後續報道，並不是要搶走 OFC 的風頭，但 LPO DSP 已經上市幾個月了。

And I'm just wondering what the early reaction has been from customers, assuming you've been able to discuss this in more detail with your customer base.

我只是想知道客戶的早期反應是什麼，假設您已經能夠與您的客戶群更詳細地討論這個問題。

I think the reaction has been has been as expected.

我認為反應正如預期的那樣。

We've seen certain customers really become very interested in this approach.

我們發現某些客戶確實對這種方法非常感興趣。

Especially for the 800 gg market, there's quite a broad spectrum in the way that customers are thinking about the market.

特別是對於 800 gg 市場，客戶對市場的看法非常廣泛。

And we can go back to OFC a year ago when this whole concept of linear pluggable optics or an optical module without a DSP was really introduced.

我們可以回到一年前的 OFC，當時線性可插拔光學元件或沒有 DSP 的光學模組的整個概念才真正被引入。

And although the call to action during OFC last year was really talking about 1.6T modules, and just the fact that the curve was almost unsustainable from a power standpoint, so looking at options.

儘管去年 OFC 期間的號召性用語實際上是在談論 1.6T 模組，但事實上，從功率的角度來看，該曲線幾乎不可持續，因此需要考慮選擇。

So, of course, there are certain people in the market that are investing resources in trying to play out the LPO architecture in the 800-gg space.

因此，當然，市場上有些人正在投入資源，試圖在 800-gg 領域發揮 LPO 架構的作用。

But of course, in a sense, the 800-gg, horse is already out of the barn.

但當然，從某種意義上說，800 gg 的馬已經走出穀倉了。

Full DSP is what you're seeing in every 800-gg module that's being built right now.

現在您正在建置的每個 800-gg 模組中都可以看到完整的 DSP。

I think there's still a desire to lower power and potentially lower cost.

我認為人們仍然希望降低功耗並降低成本。

And the key there is that our solution, which is really deploying DSP on half of the connection within the module versus what we refer to as a full DSP, we're giving a path to maintain industry standards, signal integrity and basically overcoming all the obstacles that people face by eliminating the DSP.

關鍵在於，我們的解決方案實際上是在模組內的一半連接上部署 DSP，而不是我們所說的完整 DSP，我們提供了一條保持行業標準、信號完整性並基本上克服所有問題的途徑。人們透過消除DSP 所面臨的障礙。

And so offering a path to a much reduced power and potentially cost.

因此提供了一條大幅降低功耗和潛在成本的途徑。

And so it's played out quite well.

所以它的表現非常好。

We'll actually be demonstrating the two optical module partners at OFC.

實際上，我們將在 OFC 上展示這兩個光學模組合作夥伴。

And we'll have first sample units from our partners being shipped into the first interested hyperscaler in the next fiscal quarter.

我們將在下一個財政季度將合作夥伴的第一批樣品運送到第一個有興趣的超大規模企業。

So we're pretty satisfied with the efforts that have been made over the last quarter in collaboration with our module partners.

因此，我們對上個季度與模組合作夥伴合作所做的努力感到非常滿意。

But I will say that as we look toward to the future, we're offering great solutions that are LRO, which is half DSP and full DSP.

但我要說的是，當我們展望未來時，我們提供了出色的解決方案，即 LRO，即半 DSP 和全 DSP。

And as we look at 200 gg per lane or 1.6T optical DSPs, we're going to deliver both full DSP solutions and half DSP or LRO solutions at the same time.

當我們考慮每通道 200 gg 或 1.6T 光學 DSP 時，我們將同時提供完整 DSP 解決方案和半 DSP 或 LRO 解決方案。

The design that we're pursuing and 3 nanometer we've designed in that flexibility.

我們所追求的設計以及我們設計的 3 奈米技術都具有這種靈活性。

And so it's really -- we're really putting the decision in the hands of the customer.

所以，我們確實將決定權交到了客戶手中。

Now, note that we've chosen three nanometer as our process geometry based really on on power efficiency.

現在，請注意，我們實際上基於功率效率選擇了三奈米作為我們的製程幾何形狀。

And so we believe we're going to deliver a full optical DSP that is capable of being integrated within the current connector specs and within the power ceilings that are already out there with the IEEE standard connectors.

因此，我們相信我們將提供一個完整的光學 DSP，它能夠整合到當前的連接器規格以及 IEEE 標準連接器已經存在的功率上限內。

Matt Ramsay, TD Cowen.

馬特·拉姆齊，TD·考恩。

Thank you very much, guys.

非常感謝你們。

Good afternoon.

午安.

Bill, I wanted to follow-up on the tenor of the conversation you were just having in your last answer.

比爾，我想跟進您上次回答中的談話內容。

And with OFC coming up, my observation has been, there's developed in the networking and optic space two or three polarizing religious technical debates over the last 12 months with InfiniBand and Ethernet with Linear Drive versus DSP, or whether to do whole system solutions or just chips.

隨著OFC 的出現，我的觀察是，在過去12 個月裡，網路和光學領域出現了兩到三個兩極分化的宗教技術辯論，其中涉及InfiniBand 和帶有線性驅動器的以太網與DSP，或者是做整個系統解決方案還是只是做籌碼。

And what I wanted to ask you is when you're engaging with your customer base and talking about solutions going forward, are you noticing that hyperscale companies are making bets in all areas here and there's sort of room and area under the curve for companies like yourselves and your competitors that may take different approaches to all succeed because the pie is big enough or the customer base, making sort of binary decisions along some of those axes might open or close opportunities for your company at different customers.

我想問的是，當您與客戶群互動並討論未來的解決方案時，您是否注意到超大規模公司正在所有領域下注，並且對於像這樣的公司來說，曲線下有一定的空間和領域你自己和你的競爭對手可能會採取不同的方法來取得成功，因為蛋糕足夠大或客戶群足夠大，沿著其中一些軸做出某種二元決策可能會為你的公司在不同的客戶處打開或關閉機會。

I'm just trying to get -- it seems like things have gotten very polarize around several different axes over the last 12 months.

我只是想知道——在過去 12 個月裡，事情似乎在幾個不同的軸上變得非常兩極分化。

And I'd just be kind of interested in your thoughts?

我只是對你的想法感興趣？

Thanks.

謝謝。

Sure.

當然。

I think from our perspective, it's a little bit more clear.

我認為從我們的角度來看，情況更清楚一些。

I think the churn that you see, the polarizing opinions in the market, those are really observers or participants trying to create some momentum.

我認為你所看到的流失，市場上兩極分化的觀點，這些實際上是觀察者或參與者試圖創造一些動力。

The way that we view it is really the decision-making happens in the conversations that are ongoing directly with hyperscalers.

我們認為決策實際上是在與超大規模企業直接進行的對話中進行的。

We view each one of them as a separate market.

我們將每個市場視為一個獨立的市場。

Each one has a different architectural strategy, each one has a different time line that they're working on.

每個人都有不同的架構策略，每個人都有不同的工作時間軸。

Ultimately, they all have an end objective that they're trying to strive for.

最終，他們都有一個正在努力爭取的最終目標。

But by no means this market have a kind of a common cadence or common roadmap between hyperscalers.

但這個市場在超大規模企業之間絕不具有共同的節奏或共同的路線圖。

And so our big focus is, hey, let's have these conversations and identify the right connectivity solutions for each one of our hyperscale customers.

因此，我們的重點是，嘿，讓我們進行這些對話，並為我們的每位超大規模客戶確定正確的連接解決方案。

And so we're agnostic in a sense that if hyperscaler customer wants to go in a certain direction, we're going to have to find a way to support that direction and deliver the value that they're looking for.

因此，從某種意義上說，我們是不可知的，如果超大規模客戶想要朝某個方向發展，我們就必須找到一種方法來支持該方向並提供他們正在尋找的價值。

And so I think, from our perspective, yes, we see all of the hyperscalers spending efforts on different ends of the spectrums that you just described.

因此，我認為，從我們的角度來看，是的，我們看到所有超大規模企業都在您剛才描述的範圍的不同端投入了精力。

But for us, it's all part of our overall pursuit of these customers.

但對我們來說，這都是我們對這些客戶的整體追求的一部分。

Thanks for the thoughts there.

感謝那裡的想法。

I guess as my follow-up question, Dan, I just wanted to have you reflect a little bit on the last year or so and compare where things were.

我想作為我的後續問題，丹，我只是想讓你回顧去年左右的情況並比較情況。

Obviously, the AI tidbits was way more severe in magnitude and timing than I think anybody in the market really anticipated 12 months ago.

顯然，人工智慧的花絮在規模和時機上都比我認為市場上任何人 12 個月前真正預期的要嚴重得多。

I think your customer base has broadened.

我認為你們的客戶群已經擴大了。

And I wonder if you could spend a few minutes talking about how you're viewing quarterly revenue visibility.

我想知道您是否可以花幾分鐘談談您如何看待季度收入的可見性。

It's been my observation that there's some components and data center builds that are really tight, and large hyperscalers want to make sure that some components like you guys sell into certain markets are not the bottleneck of deploying systems.

據我觀察，有些元件和資料中心建置非常嚴格，大型超大規模企業希望確保像你們這樣銷往某些市場的某些元件不會成為部署系統的瓶頸。

So the confidence in quarter-to-quarter revenue visibility, given the large nature and concentration of some of your customers and maybe contrast to where we were 12 months ago.

因此，考慮到一些客戶的規模和集中度，我們對季度收入可見度的信心可能與 12 個月前的情況形成鮮明對比。

Thanks.

謝謝。

Yeah, some of the key observations there are, if we go back just about a year ago today to when we had that Microsoft reset, I think we've done a very good job at executing to what we had laid out at that point in time.

是的，有一些關鍵的觀察結果，如果我們回到大約一年前的今天，當我們微軟重置時，我認為我們在執行我們當時制定的計劃方面做得非常好。時間。

And what's really driven that is our product diversification throughout the year and also customer diversification as you mentioned.

真正的推動力是我們全年的產品多元化以及您提到的客戶多元化。

So as we sit here today and we're preparing to close out our fiscal year '24, our revenue was up just modestly versus our FY23.

因此，當我們今天坐在這裡，準備結束 24 財年時，我們的營收與 23 財年相比略有成長。

But again, if you were to exclude Microsoft from the equation, it's up quite dramatically, driven by those underlying currents, driven by AI spend.

但同樣，如果你將微軟排除在外，那麼在這些潛在趨勢的推動下，在人工智慧支出的推動下，它的成長速度相當驚人。

A lot of these programs are AI related that we've been given an uplift for throughout the year.

其中許多項目都與人工智慧相關，我們全年都得到了提升。

So we're much more comfortable or I'm much more comfortable right now where we stand versus, say, a year ago in terms of our visibility.

因此，與一年前相比，我們現在的能見度要舒服得多，或者說我現在的處境要舒服得多。

And that's because of our diversified customer base, diversified product base.

這是因為我們多元化的客戶群、多元化的產品基礎。

So we're in quite a different position than we had been as we spoke a year ago.

因此，我們的處境與一年前截然不同。

Vijay Rakesh, Mizuho.

維傑·拉克什，瑞穗。

Yes.

是的。

Hi.

你好。

Thanks Bill and Dan.

謝謝比爾和丹。

Just a quick question on the AEC side.

我想問一個關於 AEC 方面的簡單問題。

Just wondering, you mentioned working in five hyperscalers, now.

只是想知道，您提到現在在五個超大規模企業工作。

As you go to the back half, do you see the AEC ramp broadening out to others like Google or OpenAI or Dell or any?

當你進入後半部分時，你是否看到 AEC 的成長範圍擴大到其他公司，例如 Google、OpenAI、Dell 或任何其他公司？

How do you see any of the other partner ramps starting in the back half?

您如何看待從後半區開始的其他夥伴坡道？

I think we've been pretty consistent in talking about new ramps with two of our existing customers, both on front-end networks and back-end networks for future deployments.

我認為我們在與兩個現有客戶討論新的斜坡方面一直非常一致，無論是在前端網路還是後端網路上，以供未來部署。

Both of these companies demonstrated last quarter at their respective conferences.

這兩家公司上個季度在各自的會議上進行了展示。

And so, I think that as we look at our fiscal '25 and we talk about this inflection point in the second half, it's really related to these first two customers.

因此，我認為，當我們回顧 25 財年並談論下半年的這個轉折點時，它確實與前兩個客戶有關。

And I would say that as we look at the balance of the US hyperscalers for maybe what will be our third production customer, we have concluded qualification with that customer for that first program that we've been working on.

我想說的是，當我們考慮美國超大規模企業的平衡時，我們可能會成為我們的第三個生產客戶，我們已經與該客戶就我們一直在研究的第一個專案達成了資格認證。

There is a possibility that that will see some contribution in the second half as well in '25 although we don't have good visibility on when they're exactly going to deploy.

儘管我們不太清楚它們具體何時部署，但有可能在下半年以及 25 年看到一些貢獻。

I don't have an idea as to timing and volume yet, but we have passed qualification.

我還不知道時間和數量，但我們已經通過了資格賽。

And the other two hyperscalers, five total, we're in an earlier development stage.

另外兩個超大規模供應商，總共五個，我們處於早期開發階段。

And when we think about earlier development, we're talking about architecture discussions, spec definition, product development, early samples.

當我們考慮早期開發時，我們談論的是架構討論、規範定義、產品開發、早期範例。

And those are the stages that we're working through now.

這些就是我們現在正在經歷的階段。

And I would say that as it relates to revenue layering in to the first three, I would point to fiscal year '26, and that would be for the initial ramps.

我想說，由於它與前三個收入分層有關，我會指出 26 財年，這將是最初的成長。

And so hopefully that gives you some color.

希望這能給你一些色彩。

And then quickly on that LRO side, it's very encouraging to see how fast you came to market with the receiver side DSP.

然後很快在 LRO 方面，看到您的接收器端 DSP 進入市場的速度有多快，真是令人鼓舞。

And now it seems like you are ramping with a hyperscale into the next quarter?

現在看來您正在下一季推進超大規模業務？

Can you talk to how big that business could be?

可以談談這個業務有多大嗎？

Do you see the optical DSP ramping a whole lot faster?

您是否發現光學 DSP 的速度提升得更快了？

Obviously, it's much better margins as well.

顯然，它的利潤率也好得多。

Yes, I'm not sure if that came across correctly.

是的，我不確定這是否正確。

An optical DSP design has a long development cycle associated with it in a sense that the first step you've got to do is build a module with a module partner.

光學 DSP 設計具有較長的開發週期，從某種意義上說，您要做的第一步就是與模組合作夥伴一起建立模組。

Ultimately, there's a qualification cycle that they've got to go through before they can even be considered for qualification of hyperscaler.

最終，他們必須經歷一個資格週期，然後才能考慮獲得超大規模企業的資格。

So I look at the timeline from start tZERO to being in production as being a little bit longer, maybe significantly longer than some of the AEC experience that we've had.

因此，我認為從 tZERO 啟動到投入生產的時間線有點長，可能比我們在 AEC 方面的一些經驗要長得多。

And so, as we're looking at kind of the near-term for optical DSP business, we're in the early innings of ramping our first US hyperscale customer - end customer, through our module partner.

因此，當我們著眼於近期的光學 DSP 業務時，我們正處於透過我們的模組合作夥伴擴大我們的第一個美國超大規模客戶終端客戶的早期階段。

We're seeing continued, maybe, comeback in spending with the customers that we've got already qualified in China.

我們可能會看到與我們在中國已經獲得的合格客戶的支出持續回升。

There is a second US hyperscaler that were in the stages of competing for a next generation ramp that could impact our fiscal '25.

美國第二家超大規模企業正處於爭奪下一代產品的階段，這可能會影響我們的 25 財年。

And then beyond that, I would say that there are other opportunities that we're pursuing but from a significant volume ramp perspective, probably more in fiscal '26.

除此之外，我想說，我們正在尋求其他機會，但從銷量大幅成長的角度來看，可能更多是在 26 財年。

Thomas O’Malley, Barclays.

托馬斯·奧馬利，巴克萊銀行。

Hi, guys.

嗨，大家好。

Thanks for taking my question.

感謝您提出我的問題。

My first one is a bit of a multi-parter, so forgive me.

我的第一個作品有點多人參與，所以請原諒我。

So in the quarter you saw a big engineering services contribution.

因此，在本季度，您看到了工程服務的巨大貢獻。

I think Dan, you mentioned product NRE.

我想 Dan，你提到了產品 NRE。

If you look historically, those have kind of come in on a quarterly basis, like $2 million to $3 million, could you maybe give us some color why this one was so big?

如果你從歷史上看，這些都是按季度收入的，例如 200 萬到 300 萬美元，你能給我們一些解釋為什麼這個規模這麼大嗎？

Is it one customer, multiple customers?

是一個客戶，還是多個客戶？

Is that volume-related?

這和體積有關嗎？

Maybe a little color, if it's AEC or DSP anything that would give us a little color, just given how significant it was in the January quarter.

也許有點色彩，如果是 AEC 或 DSP 任何東西都可以為我們帶來一點色彩，只是考慮到它在一月份季度的重要性。

Thank you.

謝謝。

Yes, certainly.

是的，當然了。

As you correctly identify, historically, our product NREs range from, maybe, I'd call it $2 million to $4 million per quarter.

正如您正確地識別的那樣，從歷史上看，我們的產品 NRE 範圍可能是每季 200 萬美元到 400 萬美元。

So Q3 was higher than historically.

所以第三季高於歷史水準。

But again, this really speaks to the value of the innovative solutions that we're bringing to market.

但同樣，這確實說明了我們推向市場的創新解決方案的價值。

In this particular case, it was largely for a single customer in the development, as Bill mentioned, for our next-generation chiplet.

在這種特殊情況下，正如比爾所提到的那樣，它主要是針對單一客戶開發的，用於我們的下一代小晶片。

Now, the other piece of that, of course, as we're going down the process node geometry, this particular development was for five nanometer.

當然，現在的另一部分是，當我們深入了解製程節點幾何形狀時，這個特殊的開發是針對 5 奈米的。

So the engineering resources required for that was more engineering heavy historically than what we've had in 7 nanometer and prior geometries.

因此，與我們在 7 奈米和之前的幾何結構中擁有的資源相比，歷史上所需的工程資源更加繁重。

So those are the things that are impacting that.

這些就是影響這一點的因素。

Now, having said all that, I don't think this sets a new bar or level of NRE engineering services.

話雖如此，我認為這並沒有為 NRE 工程服務設定新的標準或等級。

I would expect it to kind of trend back to the mean of our historical averages.

我預計它會回到我們歷史平均值的趨勢。

Got it.

知道了。

Super helpful.

超有幫助。

And then I just had one on a clarification for the guide.

然後我剛剛對指南進行了澄清。

So, you said IP license for the full year is going to be at the high end of your range.

所以，您說全年的知識產權許可將處於您範圍的高端。

You're saying product engineering and services goes back to the historical levels, which is like $2 million to $3 million.

你說產品工程和服務回到了歷史水平，大約是 200 萬到 300 萬美元。

You've spoken pretty positively on the AEC business, but when you kind of take all those pieces together in April, other products seems to be down a little bit.

您對 AEC 業務的評價相當積極，但當您在 4 月將所有這些部分放在一起時，其他產品似乎有所下降。

Could you give us a little color on where you may be seeing some sequential weakness, that would be super helpful.

您能否給我們一些關於您可能會看到一些連續弱點的地方的信息，這將非常有幫助。

Thank you very much, guys.

非常感謝你們。

Yes.

是的。

I don't know if I would characterize anything as sequential weakness.

我不知道我是否會將任何事情描述為連續性弱點。

If you put all those pieces together, if you exclude NRE from product, it's flat to up quarter over quarter.

如果將所有這些部分放在一起，如果將 NRE 從產品中排除，則季度環比持平或成長。

And that's based off of a very strong sequential performance in Q3.

這是基於第三季非常強勁的連續表現。

So some programs as programs ramp, they become large.

因此，有些程序隨著程序的增加，它們會變得很大。

There might be pauses in certain things, just speaking generically around programs of this nature.

某些事情可能會有停頓，只是一般性地圍繞這種性質的程序來討論。

So, nothing -- no seasonal weakness, I would say.

所以，我想說，沒有什麼——沒有季節性疲軟。

(Operator Instructions) Vivek Arya, Bank of America Securities.

（操作員指令）Vivek Arya，美國銀行證券。

Thank you for taking my questions.

感謝您回答我的問題。

The quarterly product revenues are running in this $40 million, $45 million-ish range.

季度產品收入約 4,000 萬至 4,500 萬美元。

And I was hoping you could give us a sense of how much of that is AEC run rating right now?

我希望您能讓我們了解 AEC 目前的運行評級有多少？

And how do you think about that quarterly trend over the next few quarters?

您如何看待未來幾季的季度趨勢？

Yeah.

是的。

We don't break it out specifically by product line, but what you'll kind of infer when we file our Q and you look through that is, one of our 10% customers is going through the initial stages of a production ramp of AECs.

我們不會具體按產品線進行細分，但當我們提交問題並查看時，您會推斷出，我們 10% 的客戶之一正在經歷 AEC 生產提升的初始階段。

This is our second hyperscaler that we've talked a lot about.

這是我們已經討論過很多次的第二個超大規模處理器。

So AEC drove a lot of the sequential growth from Q2 to Q3.

因此，AEC 推動了第二季到第三季的連續成長。

In the upcoming quarters, again, as these programs start to ramp, it's a little hard to predict linearity of it.

在接下來的幾個季度中，隨著這些程序開始增加，預測其線性度有點困難。

So there may be some variability quarter to quarter, until we hit this second half of fiscal '25 inflection point.

因此，每個季度可能會出現一些變化，直到我們達到 25 財年下半年的轉折點。

Hopefully that gives you some color, Vivek.

希望這能給你一些啟發，Vivek。

Thank you, Dan.

謝謝你，丹。

My bigger question is, how should we get the confidence that AEC will be a preferred choice by your customers?

我更大的問題是，我們如何確信 AEC 將成為您客戶的首選？

Because they deployed a lot of GPUs last year; they are already deploying a lot of GPUs; they are deploying a lot of optical transceivers.

因為他們去年部署了很多GPU；他們已經部署了大量 GPU；他們正在部署大量光收發器。

And so far, right, they have not deployed as much AEC.

到目前為止，他們還沒有部署那麼多的 AEC。

So what will change in the second half for them to start deploying more AEC and consider that a more mainstream choice as opposed to kind of a one-off or niche choice in a handful of deployments?

那麼，下半年會發生什麼變化，讓他們開始部署更多 AEC 並認為這是一種更主流的選擇，而不是少數部署中的一次性或利基選擇？

I think that's really the key question.

我認為這確實是關鍵問題。

Yes.

是的。

I think the question is maybe related to architectures for the back-end networks and whether there are top-of-rack switches in the AI appliance racks.

我認為這個問題可能與後端網路的架構以及人工智慧設備機架中是否有架頂交換器有關。

And I think that if we look at the work that we're doing with our customers, the long-term preference is to first of all, deploy Ethernet networks.

我認為，如果我們看看我們與客戶所做的工作，長期的偏好是先部署乙太網路。

That's pretty commonly understood amongst the five US hyperscalers.

這在美國五家超大規模企業中是很普遍的理解。

And I think that each one will have a different timeline on when they go into high volume with Ethernet networks.

我認為每個人在進入乙太網路大批量生產時都會有不同的時間表。

Some of them are deploying with InfiniBand today.

其中一些目前正在部署 InfiniBand。

And from the standpoint of designing with top-of-rack switching versus pulling all of the connections from the AI appliance using optical connections to the leaf spine dedicated switching network for the back end.

從使用架頂交換設計的角度來看，與使用光纖連接將所有連接從 AI 設備拉到後端的葉脊專用交換網路相比。

The question, I think it's around operational efficiency and it's around how do you build and deploy these.

我認為問題在於營運效率，以及如何建置和部署這些。

And if you were to look at not implementing top of rack switching, you're talking about not being able to build known good racks and then those known good racks being kind of forklift installed in the data center.

如果您考慮不實施架頂交換，那麼您正在談論無法建造已知良好的機架，然後這些已知良好的機架就像安裝在資料中心中的堆高機一樣。

You would be looking at having to assemble these clusters almost on site, which is -- there's a real trade off on operational efficiency.

您將需要幾乎在現場組裝這些集群，這在營運效率上存在真正的權衡。

But nonetheless, all of our discussions that we're having are directly associated with feedback from customers.

但儘管如此，我們所有的討論都與客戶的回饋直接相關。

And I don't think anything that we're talking about is a real one off.

我認為我們正在談論的任何事情都不是真正的一次性事件。

So, as customers execute to their long term plans, this will come more into view.

因此，當客戶執行他們的長期計劃時，這一點將會得到更多的關注。

Quinn Bolton, Needham.

奎因·博爾頓，李約瑟。

Hi, guys.

嗨，大家好。

Thanks for taking my question.

感謝您提出我的問題。

Just follow up on Vivek's question a little bit.

稍微跟進一下 Vivek 的問題。

Last quarter you had four top customers each representing a different product line.

上個季度，您有四個頂級客戶，每位客戶代表不同的產品線。

This quarter you've talked about three 10%-plus customers.

本季您談到了三個 10% 以上的客戶。

Was wondering if you can give us those 10% customers, what percent of revenues they were, and were they all representing different product lines or are you starting to see AEC coming to the top and representing the majority of revenue from at least two of your three top customers?

想知道您是否可以向我們提供這10% 的客戶，他們佔收入的百分比是多少，他們是否都代表不同的產品線，或者您是否開始看到AEC 達到頂峰並代表您至少兩個產品線的大部分收入三位頂級客戶？

And then I got a follow up.

然後我得到了跟進。

Thank you.

謝謝。

Yeah.

是的。

So as I mentioned in my prepared remarks, we had three 10% end customers in the quarter.

正如我在準備好的發言中提到的，本季我們有三個 10% 的最終客戶。

And again, it's important to realize that when our Q is filed in the next day or so, you'll see our end customer disclosure in our MD&A.

再次強調，重要的是要認識到，當我們的問題在第二天左右提交時，您將在 MD&A 中看到我們的最終客戶披露資訊。

But to give you color on what they were, the largest customer was our first AEC hyperscale customer that we've talked about.

但為了讓您了解它們是什麼，最大的客戶是我們討論過的第一個 AEC 超大規模客戶。

They came in at 28%, and that's followed by a lead chiplet customer, much of which was NRE driven at 23%.

他們佔 28%，其次是主要的 Chiplet 客戶，其中大部分是 NRE 驅動的，佔 23%。

And then the final of the top three, which you'll be able to figure out who that is based on the warrant was our second AEC hyperscaler customer at 19%.

然後前三​​名中的最後一個，您將能夠根據認股權證找出誰是我們的第二個 AEC 超大規模客戶，佔 19%。

So, two of the top three then would be AEC driven, the other being chiplet driven.

因此，前三名中的兩個將由 AEC 驅動，另一個由小晶片驅動。

So there's going to be variability in that as we go.

因此，隨著我們的發展，這方面將會存在變化。

Last quarter was a bit interesting and unique in that the top four customers all represented four different product lines.

上個季度有點有趣和獨特，因為前四名客戶都代表四種不同的產品線。

Got it.

知道了。

Thanks for that additional detail, Dan.

感謝您提供更多詳細信息，丹。

And then, I guess, Bill, you've talked a lot about the US hyperscalers wanting to deploy Ethernet-based backend networks instead of relying on InfiniBand.

然後，我想，Bill，您已經談論了很多美國超大規模企業希望部署基於乙太網路的後端網路而不是依賴 InfiniBand。

Obviously, to date, most of those GPU networks that have been deployed have been NVIDIA-based, and therefore InfiniBand is a certainly logical choice.

顯然，迄今為止，大多數已部署的 GPU 網路都是基於 NVIDIA 的，因此 InfiniBand 無疑是一個合理的選擇。

But you've got a second GPU customer, AMD, that's beginning to ramp in meaningful volumes.

但你已經有了第二個 GPU 客戶 AMD，它的銷售量開始大幅成長。

I'm just wondering, can you talk about from a high level, what are you seeing across your hyperscale customer base or the backend connections in AMD, GPU networks?

我只是想知道，您能否從高層次談談您在超大規模客戶群或 AMD、GPU 網路中的後端連線中看到了什麼？

Are they deploying Ethernet?

他們正在部署乙太網路嗎？

Are they deploying InfiniBand?

他們正在部署 InfiniBand 嗎？

Is there some other fabric?

還有其他布料嗎？

Because it certainly seem like there'd be pretty good opportunity for AECs with that AMD MI300 deployments going forward.

因為隨著 AMD MI300 部署的推進，AEC 似乎確實有很好的機會。

I think that generally speaking, you're right, but I would say that the visibility we get into the GPUs that are actually being used is really somewhat masked by the NIC.

我認為一般來說，您是對的，但我想說的是，我們對實際使用的 GPU 的可見性實際上在某種程度上被 NIC 掩蓋了。

So we see a certain number of lanes of Ethernet at a certain speed.

所以我們看到一定數量的乙太網路通道以一定的速度。

And really our solutions are the same.

事實上，我們的解決方案是相同的。

I'm sure we're connecting to NVIDIA GPUs, AMD GPUs, and internally developed GPUs as well.

我確信我們正在連接 NVIDIA GPU、AMD GPU 以及內部開發的 GPU。

So I don't think that, we would be the best group to comment on the decision-making around Ethernet versus InfiniBand.

所以我不認為我們是對乙太網路與 InfiniBand 決策進行評論的最佳小組。

I can just tell you, based on the discussions that we've had, it seems very clear that the US hyperscalers have a strong intention to deploy Ethernet.

我可以告訴你，根據我們的討論，美國超大規模企業部署乙太網路的強烈意願似乎非常明顯。

And you can go each hyperscaler and do a bottoms up on it.

你可以對每個超大規模進行自下而上的研究。

And I think you'll see that Microsoft is clearly out there as the lead hyperscaler that is deploying with InfiniBand.

我認為您會發現 Microsoft 顯然是部署 InfiniBand 的領先超大規模提供者。

But I think after that the list becomes pretty short.

但我認為此後清單就會變得相當短。

And I think everything that we're saying, Ethernet is going to be preferred.

我認為我們所說的一切都是乙太網路將成為首選。

Thank you.

謝謝。

I'm showing no further questions at this time.

我目前沒有提出任何進一步的問題。

I would now like to turn it back to Bill Brennan, CEO for closing remark.

現在我想請執行長比爾布倫南 (Bill Brennan) 致閉幕詞。

Thank you very much for the questions, but we really appreciate the participation and we look forward to following up on the callbacks.

非常感謝您提出問題，但我們非常感謝您的參與，並期待對回電進行跟進。

So much appreciated.

非常感謝。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。