Fabrinet (FN) 2015 Q1 法說會逐字稿

Good day ladies and gentlemen, and welcome to Fabrinet's first-quarter 2015 earnings conference call. At this time, all participants are in a listen-only mode.

女士們先生們，美好的一天，歡迎來到 Fabrinet 2015 年第一季度收益電話會議。此時，所有參與者都處於只聽模式。

(Operator Instructions)

（操作員說明）

As a reminder this conference call may be recorded. I would now like to hand the conference over to Mr. John Marchetti, Fabrinet's Chief Strategy Officer. Sir, you may begin.

提醒一下，此電話會議可能會被錄音。我現在想將會議交給 Fabrinet 的首席戰略官 John Marchetti 先生。先生，您可以開始了。

Thank you operator, and good afternoon everyone. Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the first quarter of FY15, which ended September 26, 2014. With me on the call today are Tom Mitchell, Chief Executive Officer and Chairman of the Board of Directors of Fabrinet; and TS Ng, our Chief Financial Officer. The call is being webcast and a replay will be available on Investors section of our website, located at investor.Fabrinet.com.

謝謝接線員，大家下午好。感謝您參加今天的電話會議，討論 Fabrinet 截至 2014 年 9 月 26 日的 2015 財年第一季度的財務和運營業績。今天和我一起參加電話會議的有首席執行官兼董事會主席 Tom Mitchell法布里內特；以及我們的首席財務官 TS Ng。該電話會議正在進行網絡直播，我們網站的投資者部分將提供重播，網址為 investor.Fabrinet.com。

Please refer to our website for important information including our earnings press release and our non-GAAP to GAAP reconciliation. I would like to remind you that today's discussion will contain forward-looking statements about the future financial performance of the Company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from Management's current expectations. These statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise them in light of new information or future events except as required by law. For a description of the risk factors that may affect our results, please refer to our recent SEC filings, in particular the section captioned Risk Factors in our Form 10-K filed on October 16, 2014.

請參閱我們的網站以獲取重要信息，包括我們的收益新聞稿和我們的非 GAAP 與 GAAP 對賬。我想提醒您，今天的討論將包含有關公司未來財務業績的前瞻性陳述。前瞻性陳述受風險和不確定因素的影響，這些風險和不確定因素可能導致實際結果與管理層當前的預期存在重大差異。這些陳述僅反映我們截至本演示文稿之日的意見，除法律要求外，我們不承擔根據新信息或未來事件修改這些陳述的義務。有關可能影響我們結果的風險因素的描述，請參閱我們最近提交給美國證券交易委員會的文件，尤其是我們於 2014 年 10 月 16 日提交的 10-K 表格中標題為“風險因素”的部分。

We will begin the call with brief remarks by Tom, myself, and TS, followed by time for questions. I would now like to turn the call over to Fabrinet's CEO and Chairman, Tom Mitchell.

我們將以湯姆、我自己和 TS 的簡短髮言開始電話會議，然後是提問時間。我現在想把電話轉給 Fabrinet 的首席執行官兼董事長湯姆米切爾。

Thank you John, and good afternoon everyone. FY15 is off to a solid start, and I am pleased with the improving visibility and traction that we are gaining with current and new customers. While the overall demand environment remains challenging, I am confident that our growing pipeline of business will enable us to deliver another year of profitable growth.

謝謝約翰，大家下午好。 2015 財年開局良好，我很高興我們在現有和新客戶中獲得的知名度和牽引力不斷提高。雖然整體需求環境仍然充滿挑戰，但我相信我們不斷增長的業務渠道將使我們能夠實現又一年的盈利增長。

I will now turn the call back to John for a discussion of the markets we serve.

我現在將把電話轉回給約翰，討論我們所服務的市場。

Thanks, Tom. Our first quarter results were in line with our expectations, with sequential and year-over-year growth in both our optical and non-optical businesses, despite what remains a challenging demand environment. This uncertain demand environment is having a negative impact on our December quarter order book.

謝謝，湯姆。我們的第一季度業績符合我們的預期，儘管需求環境仍然充滿挑戰，但我們的光學和非光學業務均實現了環比和同比增長。這種不確定的需求環境正在對我們 12 月季度的訂單產生負面影響。

Excluding the impact of the expected consignment revenue that we were unable to recognize in fiscal 4Q of last year, we are expecting our December quarter revenue to decline sequentially in both our optical and non-optical segments. Our optical communications business performed well in the quarter, increasing 23% sequentially and 9% year-over-year. On a normalized basis, excluding the impact of the consignment revenue on our operations, the optical communications business increased 8% quarter-over-quarter and 7% year-over-year.

排除我們無法在去年第四財季確認的預期寄售收入的影響，我們預計我們的光學和非光學部門的 12 月季度收入將連續下降。我們的光通信業務在本季度表現良好，環比增長 23%，同比增長 9%。在正常情況下，剔除代銷收入對我們運營的影響，光通信業務環比增長 8%，同比增長 7%。

Our split between telecom and datacom in the quarter was approximately 70/30 with both segments up on a sequential and year-over-year basis. Similar to prior quarters, growth in our optical communications business was driven by advanced optical components and modules, including 100-gig, while the improvements in our datacom business were driven by 10-gig and 40-gig solutions. As we look into the December quarter we are expecting both our telecom and datacom businesses to decline on a sequential basis.

本季度我們在電信和數據通信之間的比例約為 70/30，這兩個部分按順序和同比增長。與前幾個季度類似，我們的光通信業務的增長是由先進的光學組件和模塊推動的，包括 100-gig，而我們的數據通信業務的改進是由 10-gig 和 40-gig 解決方案推動的。當我們展望 12 月季度時，我們預計我們的電信和數據通信業務將連續下降。

Our non-optical business turned in another solid quarter with revenue up 15% year-over-year and 8% sequentially, driven by improvements in our laser and automotive segments. Similar to our optical business, we are expecting the non-optical portion of our fiscal 2Q revenue to decline modestly on a quarter-over-quarter basis. We continue to win new programs from existing customers in both our auto and laser businesses, and remain encouraged by the long-term outlook for this segment.

我們的非光學業務在又一個穩健的季度實現了收入同比增長 15%，環比增長 8%，這主要得益於激光和汽車領域的改進。與我們的光學業務類似，我們預計第二財季收入的非光學部分將環比小幅下降。我們繼續從我們的汽車和激光業務的現有客戶那裡贏得新項目，並繼續對該領域的長期前景感到鼓舞。

In terms of our new business efforts, revenue from new accounts represented approximately 10% of revenue in the first quarter, up from approximately 3% of revenue in the same quarter last year. Year-over-year growth in this category was driven by contributions from both new optical and non-optical programs. As Tom mentioned in his opening remarks we are encouraged by the increased visibility that we are beginning to see in terms of the sustainability and predictability of this revenue contribution.

在我們的新業務方面，第一季度新客戶收入約佔收入的 10%，高於去年同期的約 3%。這一類別的同比增長是由新的光學和非光學項目的貢獻推動的。正如湯姆在開場白中提到的那樣，我們開始看到這種收入貢獻的可持續性和可預測性越來越明顯，這讓我們感到鼓舞。

Our new business efforts are a vital part of our overall growth strategy, and while we still anticipate that these opportunities will be somewhat lumpy, we feel confident that the long-term outlook for this book of business is positive. Despite a demand environment that remains stubbornly uncertain, we remain confident that FY15 will be another profitable year of growth for the Company. Our pipeline of new business is growing, our relationships with our existing customers are strong, and our focus on providing world-class engineering and manufacturing services position us well for long-term success.

我們的新業務努力是我們整體增長戰略的重要組成部分，雖然我們仍然預計這些機會會有些坎坷，但我們相信這本書的長期前景是積極的。儘管需求環境依然不明朗，我們仍然相信 2015 財年將是公司又一個盈利增長的年份。我們的新業務正在增長，我們與現有客戶的關係牢固，我們專注於提供世界一流的工程和製造服務，這使我們能夠取得長期成功。

With that, I would now like to turn the call over to TS for a review of our financial results.

有了這個，我現在想把電話轉給 TS 來審查我們的財務業績。

Thanks, John. Good afternoon, everyone.

謝謝，約翰。大家下午好。

As in the past, all numbers presented here are GAAP unless stated otherwise. In line with what we announced 2.5 weeks ago, our total revenue for the first quarter was $189.3 million, an increase of 10% compared to total revenues of $171.6 million in the first quarter of last fiscal year, and up [18%] compared to last quarter. Please note that revenue in the quarter includes $3.3 million in consigned shipment revenue excluded from FY14.

與過去一樣，除非另有說明，否則此處顯示的所有數字均為 GAAP。與我們 2.5 週前宣布的一致，我們第一季度的總收入為 1.893 億美元，與上一財年第一季度的總收入 1.716 億美元相比增長 10%，與去年同期相比增長 [18%]上個季度。請注意，本季度的收入包括 2014 財年不包括的 330 萬美元的托運收入。

On an end market basis, revenue from optical communications was $135.3 million, or 71% of total revenue for the quarter, while revenue from non-optical business was $54.1 million, the remaining 29%. GAAP gross margin for the first quarter was 10.8%, a decrease of 30 basis points sequentially. Excluding share-based compensation expenses, non-GAAP gross margin was 11% in fiscal first quarter, down 30 basis points quarter-over-quarter, and in line with our expectations given employee merit increases paid at the start of our first fiscal year.

在終端市場方面，光通信收入為 1.353 億美元，佔本季度總收入的 71%，而非光業務收入為 5410 萬美元，佔其餘 29%。第一季度美國通用會計準則毛利率為 10.8%，環比下降 30 個基點。不包括基於股份的薪酬費用，第一財季非美國通用會計準則毛利率為 11%，環比下降 30 個基點，符合我們的預期，因為我們在第一個財年開始時支付了員工績效加薪。

Our total share-based compensation expenses for the quarter were $1.9 million, of which roughly $1.5 million was included in SG&A. Our taxes in the quarter were as a net expenses of approximately $971,000, and our effective tax rate for the quarter was 8.1%, above our expected range of 5% to [6%]. On a normalized basis, our effective tax rate would have been 7% if you exclude the one-time expenses related to investigation costs both in this quarter. We anticipate that our effective tax rate will be in the range of 6% to 7% moving forward until Building 6 is substantially occupied.

本季度我們基於股份的薪酬總支出為 190 萬美元，其中約 150 萬美元包含在 SG&A 中。我們本季度的稅款淨支出約為 971,000 美元，本季度的有效稅率為 8.1%，高於我們 5% 至 [6%] 的預期範圍。在標準化的基礎上，如果您排除本季度與調查成本相關的一次性費用，我們的實際稅率將為 7%。我們預計，在 6 號樓被大量佔用之前，我們的有效稅率將在 6% 至 7% 的範圍內。

On a non-GAAP basis, net income totaled $14.5 million for the quarter, or $0.41 per diluted share. Non-GAAP net income was up from $12.1 million last quarter as a result of the higher revenue and grew 2.4% compared to non-GAAP net incomes of $14.2 million in the same period last year. On a GAAP basis, including share-based compensation expenses and expenses related to the accounting investigation, our net income was $11 million or $0.31 per diluted share, compared to net income of $19.2 million GAAP-wise, or $0.55 per diluted share in the first quarter of FY14. Please note that our GAAP net income in the first fiscal quarters of 2014 was positively impacted by $6.6 million, or $0.19 per diluted share, due to flat insurance proceeds.

按非美國通用會計準則計算，本季度淨收入總計 1,450 萬美元，或每股攤薄收益 0.41 美元。由於收入增加，非 GAAP 淨收入高於上一季度的 1,210 萬美元，與去年同期的非 GAAP 淨收入 1,420 萬美元相比增長 2.4%。根據 GAAP，包括基於股份的補償費用和與會計調查相關的費用，我們的淨收入為 1100 萬美元或攤薄後每股 0.31 美元，而第一季度的 GAAP 淨收入為 1920 萬美元，或攤薄後每股 0.55 美元2014 財年季度。請注意，我們 2014 年第一財季的 GAAP 淨收入受到 660 萬美元或攤薄後每股 0.19 美元的積極影響，原因是保險收益持平。

Moving on to the balance sheet and cash flow statement, we ended the quarter with a cash balance of $244 million. So the cash increased by approximately $11 million sequentially, primarily from our operations.

轉到資產負債表和現金流量表，我們在本季度末的現金餘額為 2.44 億美元。因此現金增加了大約 1100 萬美元，主要來自我們的運營。

I would now like to discuss guidance for next quarter. We expect revenues of between $181 million and $185 million, which includes approximately $13.2 million of consigned revenue excluded from FY14. GAAP net income per share is expected to be in the range of $0.22 to $0.24, and non-GAAP net income per share of $0.37 to $0.39, based on approximately 36 million fully diluted shares outstanding.

我現在想討論下一季度的指導。我們預計收入在 1.81 億美元至 1.85 億美元之間，其中包括約 1320 萬美元的未計入 2014 財年的寄售收入。基於約 3600 萬股完全稀釋的已發行股票，預計 GAAP 每股淨收入在 0.22 美元至 0.24 美元之間，非 GAAP 每股淨收入在 0.37 美元至 0.39 美元之間。

That concludes our prepared remarks. At this point, I would like to turn the call over for questions. Operator?

我們準備好的發言到此結束。在這一點上，我想把電話轉過來提問。操作員？

(Operator Instructions)

（操作員說明）

Sherri Scribner, Deutsche Bank.

Sherri Scribner，德意志銀行。

I wanted to quickly clarify the consignment revenue. Did you say for the December quarter you expect it to be $13.2 million?

我想快速澄清代銷收入。您是否說過您預計 12 月季度為 1320 萬美元？

Yes, Sherri, this is TS. Yes.

是的，雪莉，這是 TS。是的。

Okay, so --

可以，然後呢 -

And Sherri, that should pretty much clean up the whole issue. When we first reported it back in the Q4 results call, and we talked about it $16.5 million. We did about $3.3 million in this first quarter. We should have the bulk of the remainder, if not all of it, out in fiscal Q2.

Sherri，這應該可以解決整個問題。當我們在第四季度業績電話會議上首次報告時，我們談到了 1650 萬美元。我們在第一季度做了大約 330 萬美元。如果不是全部，我們應該會在第二財季拿出大部分剩餘資金。

Because I'm trying to think about trying to understand sort of the organic revenue when you exclude the consignment revenue, and trying to understand what type of declines you're seeing from an end market perspective.

因為當你排除寄售收入時，我試圖考慮嘗試理解某種有機收入，並試圖從終端市場的角度理解你看到的是什麼類型的下降。

Sure, so if you wipe that out, and you look at the way -- if you remove it all and you normalize it, we would have reported, say, in the 4Q number, about $176 million. The 1Q number, excluding any of the consignment revenue, would have been about $186 million, and the guidance here without that $13 million, give or take, is essentially $168 million to $172 million.

當然，所以如果你把它擦掉，然後看看這個方法——如果你把它全部去掉並使它正常化，我們會在第四季度的數字中報告大約 1.76 億美元。第一季度的數字，不包括任何寄售收入，約為 1.86 億美元，如果沒有這 1300 萬美元，這裡的指導基本上是 1.68 億美元到 1.72 億美元。

And so in terms of the declines you are expecting for the different end markets, are you expecting the optical to be down more than the laser and sensor business? I know you said both to be down, but just trying to understand the magnitude. And I think you said it's both telecom and datacom. Just trying to understand what you are seeing from your customers, thanks.

因此，就您對不同終端市場的預期下降而言，您是否預計光學業務的下降幅度超過激光和傳感器業務？我知道你說兩者都下降了，但只是想了解幅度。我想你說過它既是電信又是數據通信。只是想了解您從客戶那裡看到的內容，謝謝。

Right, so for us, the mix on the telecom/datacom side, I would say we're expecting the datacom business to be a little bit softer for us than on the telco side. We are expecting both to be down sequentially, but datacom probably more so than telco for us. And while we are expecting some declines on the non-optical business, from a magnitude perspective, it really is coming more from the optical side of the house.

是的，所以對我們來說，電信/數據通信方面的組合，我想說我們預計數據通信業務對我們來說比電信方面要軟一些。我們預計兩者都會依次下降，但對我們而言，數據通信可能比電信更甚。雖然我們預計非光學業務會出現一些下滑，但從幅度的角度來看，它實際上更多地來自房屋的光學方面。

Okay, thank you.

好的謝謝。

Patrick Newton, Stifel.

帕特里克·牛頓，Stifel。

I guess dovetailing off of Sherri's question, if we take out the effect of your consignment revenue recognition I'm calcing it down 9% sequential guide, and at down 5% year-over-year guide. And if we take seasonality, if we take what we've heard from your 10% plus or near 10% customers to date, I think it's somewhat surprising what you are guiding to at the midpoint. And I guess, maybe a two-part question is, should we think about something fundamentally in the optical market that is challenging, or is this more of a customer-specific type of issue as opposed to a broader market challenge?

我想與 Sherri 的問題相吻合，如果我們剔除您的寄售收入確認的影響，我會將其計算為連續下降 9%，同比下降 5%。如果我們採用季節性，如果我們採用迄今為止從您的 10% 以上或接近 10% 的客戶那裡聽到的信息，我認為您在中點的指導有點令人驚訝。我想，也許一個由兩部分組成的問題是，我們是否應該從根本上考慮光學市場中具有挑戰性的事情，或者這更多是針對特定客戶的問題，而不是更廣泛的市場挑戰？

You know, Patrick, I think it's a little bit of both issues. For us, when we look at the way the last few quarters have gone, September, we were a little bit stronger than the industry. And we talked on our last call that we thought that was more a timing issue than really a share gain issue or anything along those lines. So for us, I think we are playing a little bit of catch-up here.

你知道，帕特里克，我認為這兩個問題都有一點。對我們來說，當我們回顧過去幾個季度的發展方式時，9 月份，我們比行業強一點。我們在上次電話會議上談到，我們認為這更像是一個時間問題，而不是真正的股票收益問題或類似的任何問題。所以對我們來說，我認為我們在這裡有點追趕。

We typically do see order cuts come in during the December quarter as customers start to sort of clean up, if you will, a little bit ahead of what is typically a weaker March quarter. And for us, those cuts have come in maybe a little bit earlier than what is normal for us. So we are being, I think, a little bit conservative here to be careful about that and make sure that we don't get ourselves into any kind of trouble here.

我們通常確實會在 12 月季度看到訂單減少，因為客戶開始清理，如果你願意的話，比通常較弱的 3 月季度提前一點。對我們來說，這些削減可能比我們的正常情況早一點。所以我認為，我們在這裡有點保守，要小心謹慎，確保我們不會在這裡陷入任何麻煩。

But I think, beyond just sort of the mechanics of the way the industry tends to roll and we tend to contribute within that, I think it is like I said, our datacom business has always been lumpier than the industry because of some of the exposure that we had there. We don't have it as broadly as we do on the telecom side and I think for us, in particular, that's weighing a little bit here on the December quarter results. TS, I don't know if you have got anything else that you would like to add there.

但我認為，除了行業趨於發展的機制之外，我們傾向於在其中做出貢獻，我認為就像我說的那樣，由於某些風險敞口，我們的數據通信業務一直比行業更不穩定我們在那裡。我們沒有像在電信方面那樣廣泛，我認為對我們來說，特別是，這對 12 月季度的業績有點影響。 TS，我不知道你是否還有什麼想補充的。

No, I think you are on the money.

不，我認為你在賺錢。

And then I guess, maybe to ask more pointed along the same lines, because you said a little bit from customer and a little bit from industry; is on a customer side you have greater than 10% customer that is winding down some product lines; you have a two-six that there's always been a fear they could move some production in house; you have another customer that's sub-10% but that's selling some of their assets, a portion of which you make to a vertically integrated player. Are those -- are any of those types of large customer-specific moves impacting your guidance?

然後我想，也許要沿著相同的方向提出更多的問題，因為你說了一點來自客戶，一點來自行業；在客戶方面，您有超過 10% 的客戶正在縮減某些產品線；你有一個二六歲的人，他們總是擔心他們會把一些生產轉移到內部；您有另一個客戶，其收入低於 10%，但正在出售他們的部分資產，您將其中的一部分出售給垂直整合的玩家。這些 - 是否有任何類型的大型客戶特定舉措影響您的指導？

I guess what I would say to that, Patrick, is I think it is more industry-related than it is related to sales of assets or programs moving away or being shut down or things like that. When I look at the roll-up that we have, it's not that programs are being cut off, it's not that programs that have been sold or something like that are suddenly being cut and we're seeing volumes go elsewhere, or anything along those lines. So I don't think it is program-specific in the sense that some of these customers are either going through asset sales or have gone through asset sales or are cutting big end of life programs that were really seeing a big impact from that.

帕特里克，我想我會說的是，我認為它與行業的關係比與資產或項目的出售、搬走或關閉或類似事情的關係更大。當我查看我們的匯總時，並不是計劃被削減，也不是已經售出的計劃或類似的東西突然被削減，我們看到數量轉移到其他地方，或者其他任何東西線。所以我不認為它是特定於程序的，因為其中一些客戶要么正在經歷資產出售，要么已經經歷資產出售，或者正在削減真正從中看到巨大影響的大型生命週期結束計劃。

Great. Thank you for taking my questions. Good luck.

偉大的。謝謝你回答我的問題。祝你好運。

Alex Henderson, Needham & Company.

Alex Henderson, Needham & Company。

Let me just follow up on that last one. It's my understanding that if anybody were to move a narrow line with an ITLA line from to you somewhere else that they would have to get requalified. Doesn't that essentially prohibit any moves of a product line like that?

讓我跟進最後一個。據我了解，如果有人要將一條帶有 ITLA 線路的窄線路從其他地方移到您那裡，他們將必須重新獲得資格。這不是從根本上禁止了產品線的任何移動嗎？

I certainly think it makes it challenging, Alex. It doesn't preclude it, but it makes it very challenging for a customer to pick that up, move, quite frankly, all that equipment away, have to reestablish production; and then to your point, requalify that production. So to do so would be a multi-quarter process. It does certainly help and make it pretty sticky.

我當然認為它具有挑戰性，亞歷克斯。這並不排除它，但它使客戶很難拿起它，坦率地說，搬走所有這些設備，必須重新開始生產；然後就您的觀點而言，重新驗證該產品。因此，這樣做將是一個多季度的過程。它確實有幫助並使其非常粘。

So that's certainly not a meaningful factor here. The other question I had on product lines. It is clear that there are some product lines that some of your customers have, that are around some of the legacy product lines, are being discontinued at the customer in order to pare products that are losing money.

所以這在這里肯定不是一個有意義的因素。我對產品線的另一個問題。很明顯，您的一些客戶擁有的一些產品線，圍繞著一些遺留產品線，正在被客戶停產，以削減虧損的產品。

Is that part and parcel of what's going on here in either datacom or the telecom products? Is it a function of some older lines being shut down to stem losses?

這是數據通信或電信產品中發生的事情的重要組成部分嗎？是不是一些老線路被關閉以阻止損失的功能？

You know, I think, Alex, certainly there are programs that are being discontinued. I'm not trying to lay all the blame for the decline at the feet of those programs. They certainly contribute. They have contributed in prior quarters, and they're likely to still contribute here for a couple of quarters going forward. So, while that is certainly a piece of it, I don't think it is the major source of the quarter-over-quarter decline.

你知道，我想，亞歷克斯，當然有一些項目正在停止。我並不是要將衰退歸咎於這些項目。他們當然有貢獻。他們在前幾個季度做出了貢獻，並且他們很可能在未來幾個季度仍然在這裡做出貢獻。因此，雖然這肯定是其中的一部分，但我認為這不是環比下降的主要來源。

The other area that is quite challenging is direct-detect, and it's my understanding that you're manufacturing a fair amount of direct-detect product that is sourced through you for projects that have yet to move to Coherent in the 40-gig arena. And that area is also declining.

另一個非常具有挑戰性的領域是直接檢測，據我了解，您正在製造相當數量的直接檢測產品，這些產品是通過您採購的，用於尚未在 40 兆領域轉移到 Coherent 的項目。而且那個區域也在下降。

Is that a part of the industry backdrop that's impacting things? I'm trying to separate out some of the items that could be --

這是影響事物的行業背景的一部分嗎？我試圖分離出一些可能是——

(Multiple speakers) It's certainly the stronger growth year area of the business. I don't want to give out too many specifics, Alex, because I need to be very careful about our customers' product lines and programs. But, I think that obviously, Coherent is certainly where the industry is seeing, not just the growth, but certainly the focus shift too.

（多位發言者）這肯定是業務增長強勁的一年。我不想透露太多細節，亞歷克斯，因為我需要非常小心我們客戶的產品線和程序。但是，我認為很明顯，Coherent 肯定是行業所看到的，不僅僅是增長，而且肯定還有焦點轉移。

The comments around Coherent in the marketplace converse to the situation with direct-detect has still been strong general demand conditions at most of the vendors. Certainly that was made -- the comment was made on the JDSU call not so long ago. I assume some of the other people are seeing similar.

市場上對 Coherent 的評論與直接檢測的情況相反，在大多數供應商中仍然是強烈的普遍需求條件。當然是這樣——不久前在 JDSU 電話會議上發表了評論。我假設其他一些人也看到了類似的情況。

I guess what I'm trying to get at is, is it a function of some of the old legacy direct-detects offsetting what is still a growth business in the 100-gig and 40-gig Coherent, or is the trajectory of Coherent moderated as well? Could you give us any sense of that general backdrop?

我想我想知道的是，它是否是一些舊的遺留直接檢測功能抵消了 100 兆和 40 兆相干公司仍在增長的業務，或者相干公司的軌跡是否緩和還有嗎？你能給我們介紹一下這個總體背景嗎？

Sure thing, Alex. I don't think we've seen a big change in the slope of the curve, if you will, on the Coherent side. I think that we've seen probably the non-Coherent, or some of the legacy-type businesses become a little bit lumpier for us in terms of the quarter-to-quarter patterns. But I do think the Coherent trajectory, if you will, the growth trajectory of that technology still is pretty healthy.

當然可以，亞歷克斯。我認為我們沒有看到曲線斜率發生重大變化，如果你願意的話，在 Coherent 方面。我認為，就季度到季度的模式而言，我們可能已經看到非相干公司或一些傳統類型的業務對我們來說變得有點笨拙。但我確實認為相干軌跡，如果你願意的話，該技術的增長軌跡仍然非常健康。

Another question, slightly different angle to it. I know you guys sell to the OEMs, but I assume you get some read-through on where it's going. Any sense of what's going on in the China market?

另一個問題，角度略有不同。我知道你們是賣給原始設備製造商的，但我假設你們對它的發展方向有一些了解。對中國市場正在發生的事情有任何了解嗎？

The only thing, I guess, I would comment there, Alex, is for the customers that we have exposure to China through, the discussions that we've had from them they seem pretty content with how that market has unfolded for them throughout the year. We haven't heard from our customers that that market has really deviated much from their expectations as they've been going through the year.

我想，我唯一要評論的是，亞歷克斯，對於我們接觸中國的客戶，我們從他們那裡得到的討論，他們似乎對這個市場全年為他們展開的方式非常滿意.我們還沒有從我們的客戶那裡聽說，在過去的一年裡，該市場確實偏離了他們的預期。

So it doesn't feel like it has heated up recently, if that's fair to say, and it certainly hasn't underperformed their expectations as they've gone through the year. At least in the discussions we've had, I think the China market has performed very much in line with expectations.

因此，如果可以公平地說，最近感覺它並沒有升溫，而且在過去的一年中，它的表現肯定沒有低於他們的預期。至少在我們進行的討論中，我認為中國市場的表現非常符合預期。

One last question, and I will cede the floor. You've made reference to your building expansion. Begs the question of where are we in the capacity adds, and where are we on utilization rates and so forth? And does a down quarter here negatively impact utilization rates? Should we be nervous that that could hurt your numbers on the margin side?

最後一個問題，我將放棄發言權。你提到了你的建築擴建。引出了一個問題，即我們的產能增加在哪裡，我們的利用率在哪裡等等？這裡的季度下滑是否會對利用率產生負面影響？我們是否應該擔心這會損害您在保證金方面的數字？

Sure, so from a space allocation perspective, Buildings 3, 4, and 5 are essentially full, and Building 6 is a little bit more than half, in terms of space that's being spoken for. So if you combine that on a campus-wide basis, we're probably, from a space perspective, somewhere between 70% and 75%.

當然，從空間分配的角度來看，3 號樓、4 號樓和 5 號樓基本上已經滿了，而 6 號樓的空間略多於一半，就正在談論的空間而言。因此，如果你在整個校園範圍內將其結合起來，從空間的角度來看，我們可能在 70% 到 75% 之間。

I would say equipment utilization for the factory is still probably running somewhere in the low to mid-60%s, so probably a little bit below that. Most customers are still only on a couple shifts a day. We certainly have some exceptions to that but most customers are still running two shifts a day. We still have a fair bit of capacity available, both for new customers to come in and take white space, as well as for ramping production, quite frankly, with existing lines that are already established.

我想說工廠的設備利用率可能仍在 60% 左右的某個位置運行，所以可能略低於此水平。大多數客戶仍然每天只輪班幾次。我們當然有一些例外，但大多數客戶仍然每天兩班倒。我們仍然有相當多的可用產能，既可以供新客戶進入並佔用空白空間，也可以用於提高產量，坦率地說，現有生產線已經建立。

Very helpful. Thank you very much.

很有幫助。非常感謝。

Troy Jensen, Piper.

特洛伊詹森，派珀。

John, maybe just a couple of questions for you. So can you guys quantify at all how big Emcore is a customer? I know they're sub-10%, but any color on that would be helpful.

約翰，也許只是問你幾個問題。那麼你們能量化 Emcore 的客戶有多大嗎？我知道它們低於 10%，但上面的任何顏色都會有所幫助。

Definitely, you are right, less than 10%.

當然，你是對的，不到 10%。

Okay, I understand.

好吧，我明白。

We haven't broken it out since they fell below that line. But they're probably a mid-single digits kind of customer.

我們還沒有打破它，因為他們跌破了那條線。但他們可能是中等個位數的客戶。

Okay, that's fair. Within datacom, how big is 10G and 40G as a percentage of that business, and are you expecting both 10G and 40G to decline sequentially?

好吧，這很公平。在數據通信中，10G 和 40G 佔該業務的百分比有多大，您是否預計 10G 和 40G 都會依次下降？

To the second part of your question, Troy, I don't know if we have broken it down by speed that way to try to figure out if the decline is coming more from 10G than 40G. You know, when I look at it like that, 10G and 40G overall is more than probably 50% of the datacom business. I would have to go back and double-check.

對於你問題的第二部分，特洛伊，我不知道我們是否以這種方式按速度對其進行了細分，以試圖弄清楚下降是否更多地來自 10G 而不是 40G。你知道，當我這樣看時，10G 和 40G 總體上可能超過數據通信業務的 50%。我將不得不回去仔細檢查。

I don't know if you know off the top of your head. We can certainly get that number for you, Troy, but I don't think, from a forecast perspective, we don't forecast it by 10G or 40G as we're looking at the sequential numbers.

我不知道你是否知道你的頭腦。 Troy，我們當然可以為您得出這個數字，但我認為，從預測的角度來看，我們不會預測 10G 或 40G，因為我們正在查看序列號。

Okay. Understood. Thanks, guys.

好的。明白了。多謝你們。

Sherri Scribner, Deutsche Bank.

Sherri Scribner，德意志銀行。

I just wanted to think about the March quarter and understand. I think you said, TS, that the consignment revenue ends this quarter, or maybe, John, you said that. And so without the consignment revenue we're at about $168 million to $172 million this quarter. Typically, you are down in a March quarter but the street is expecting you to do about $179 million. Would you assume you'll be down in the March quarter? I know you don't typically give guidance but just trying to get sort of an understanding of where we are.

我只是想想想三月份的季度並理解。我想你說過，TS，寄售收入在本季度結束，或者，約翰，你說過。因此，如果沒有寄售收入，我們本季度的收入約為 1.68 億美元至 1.72 億美元。通常，您在 3 月的一個季度業績下滑，但市場預期您的業績約為 1.79 億美元。你會假設你會在三月季度倒閉嗎？我知道您通常不會提供指導，而只是試圖了解我們所處的位置。

You know, Sherry, it 's a little bit challenging for us right now to look out to March and say we will or we won't be down sequentially. Like you said, the industry is typically a little bit weaker there.

你知道，雪莉，我們現在要展望 3 月並說我們會或不會依次下降對我們來說有點挑戰。就像你說的，那裡的行業通常比較弱。

Like I said, we've seen order cuts, at least for us, a little bit earlier in this quarter. So I think we'll have to wait and see how it balances out. We're seeing a little bit of a more of a datacom impact here in December. We've said that's a little bit lumpy so that could kind of go either way on us in March.

就像我說的那樣，至少在本季度早些時候，我們已經看到訂單減少了。所以我認為我們將不得不等待，看看它是如何平衡的。我們在 12 月在這裡看到了更多的數據通信影響。我們已經說過這有點起伏不定，所以三月份我們可能會選擇任何一種方式。

Telecom is typically down, but I think there's a couple of mitigating factors. And then as Tom talked about in his opening remarks, we are starting to see a little bit of greater contribution from the new customers. And I think they may help offset that a little bit.

電信通常會下降，但我認為有幾個緩解因素。然後正如湯姆在開場白中所說的那樣，我們開始看到新客戶做出了更大的貢獻。我認為它們可能有助於抵消一點。

So it's still a little bit of a mixed bag as we're looking out into that March quarter. But I don't think the consensus numbers that are out there right now are unreasonable in any way.

因此，當我們展望 3 月的那個季度時，它仍然有點魚龍混雜。但我不認為現在的共識數字在任何方面都是不合理的。

But to be fair, the number that we should be looking at is the comparison for the second quarter to the third quarter would be the $168 million to $172 million without that consignment revenue? Because the consignment revenue will be gone. Is that fair?

但公平地說，如果沒有寄售收入，我們應該看的是第二季度與第三季度的比較是 1.68 億美元到 1.72 億美元？因為寄售收入將消失。這公平嗎？

Correct. We do not anticipate at this point that there's going to be any consignment revenue in that March quarter.

正確的。我們目前預計 3 月份的那個季度不會有任何寄售收入。

Okay, thank you.

好的謝謝。

Alex Henderson, Needham & Company.

Alex Henderson, Needham & Company。

Yes, I just wanted to go back to the opening comment about you expecting a good year, an up year growth year. I assume you meant on both the revenues and on the EPS.

是的，我只是想回到開場評論，你期待一個好年，一個增長年。我假設你指的是收入和每股收益。

I'm just trying to figure out, if we were to exclude the impact of the consignment stuff, from the first half of the year here, is that still expected to be a growth year, and additionally, are you still expecting -- are you saying you're expecting to up EPS for the year based on the guidance after the first two quarters here? Because it's not obvious that that's the case.

我只是想弄清楚，如果我們從今年上半年開始排除寄售的影響，那是否仍然有望成為增長的一年，此外，你是否仍然期待 - 是你是說你希望根據前兩個季度後的指導提高今年的每股收益？因為事實並非如此。

Well, you know, I will take a shot at the top-line stuff, and I'll let TS talk a little bit on the EPS side. But I think from the way we're looking at the full year, even if you stripped out that $16.5 million and said put it back into 4Q of last year, we would still be looking at -- our expectation, certainly, is that we'll be looking at a growth year on the top-line, FY15 versus FY14. TS, I will let you handle the EPS question, in terms of the --

好吧，你知道的，我會嘗試一下頂級的東西，我會讓 TS 在 EPS 方面稍微談談。但我認為，從我們看待全年的方式來看，即使你去掉那 1650 萬美元並說把它放回到去年的第四季度，我們仍然會關注——我們的期望當然是我們我們將關注收入增長的一年，即 2015 財年與 2014 財年。 TS，我會讓你處理 EPS 問題，就 --

Thanks, John. Alex, if you look at last year, on average we did about close to $170 million, $175 million per quarter. So this year, for example, the first quarter without the consigned, we already did $186 million, right? And I believe that definitely it's a growth year for us, from a top-line standpoint, and we also have said the EPS will be growing from last year.

謝謝，約翰。亞歷克斯，如果你看看去年，我們平均每季度完成了近 1.7 億美元，1.75 億美元。所以今年，例如，沒有寄售的第一季度，我們已經做了 1.86 億美元，對嗎？而且我相信，從頂線的角度來看，這對我們來說絕對是增長的一年，我們也說過每股收益將從去年開始增長。

So on a non-GAAP basis.

所以在非公認會計原則的基礎上。

Correct, because last year, too, we had some of the flood stuff that was still in there contributing to EPS growth.

正確，因為去年，我們也有一些洪水的東西仍然存在，有助於每股收益的增長。

Just wanted to make sure we were talking about the same thing. Great, thank you.

只是想確保我們在談論同一件事。太好了謝謝。

Understood.

明白了。

Thank you. I'm showing no further questions at this time, gentlemen.

謝謝。先生們，我現在沒有進一步的問題。

Great. Well, thank you, everybody, for joining us today, and we look forward to speaking to everybody soon.

偉大的。好吧，謝謝大家今天加入我們，我們期待很快與大家交談。

Ladies and gentlemen, thank you for participating in today's conference. This concludes our program. You may all disconnect and have a wonderful day.

女士們，先生們，感謝你們參加今天的會議。我們的程序到此結束。你們可能都會斷開連接並度過美好的一天。