Fabrinet (FN) 2019 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Fabrinet's fiscal results conference call for the fourth quarter of fiscal year 2019. (Operator Instructions) As a reminder, today's call is being recorded.

女士們先生們，美好的一天，歡迎來到 Fabrinet 2019 財年第四季度的財務業績電話會議。（操作員說明）提醒一下，今天的通話正在錄音中。

I would now like to turn the call over to your host, Garo Toomajanian, Investor Relations.

我現在想把電話轉給你的主持人，投資者關係部的 Garo Toomajanian。

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 fourth quarter and fiscal year 2019, which ended June 28, 2019.

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 2019 年 6 月 28 日的第四季度和 2019 財年的財務和運營業績。

With me on the call today are Seamus Grady, Chief Executive Officer; and TS Ng, Chief Financial Officer. This call is being webcast, and a replay will be available on the Investors section of our website located at investor.fabrinet.com. Please refer to our website for important information, including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation.

今天和我一起打電話的是首席執行官 Seamus Grady；和首席財務官 TS Ng。此電話會議正在進行網絡直播，重播將在我們網站 investor.fabrinet.com 的“投資者”部分提供。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投資者介紹，其中包括我們的 GAAP 與非 GAAP 對賬。

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 SEC filings; in particular, the section captioned Risk Factors in our Form 10-Q filed on May 7, 2019.

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說明，請參閱我們向美國證券交易委員會提交的文件；特別是我們於 2019 年 5 月 7 日提交的 10-Q 表格中標題為“風險因素”的部分。

We will begin the call with remarks from Seamus and TS, followed by time for questions.

我們將以 Seamus 和 TS 的評論開始通話，然後是提問時間。

I would now like to turn the call over to Fabrinet's CEO, Seamus Grady. Seamus?

我現在想把電話轉給 Fabrinet 的首席執行官 Seamus Grady。西默斯？

Thank you, Garo, and good afternoon, everyone. I'm pleased with our record performance for revenue and earnings in the fourth quarter, especially given some of the unusual business dynamics we experienced during the quarter.

謝謝你，Garo，大家下午好。我對我們第四季度創紀錄的收入和收益表現感到滿意，特別是考慮到我們在本季度經歷的一些不尋常的業務動態。

Revenue in the fourth quarter was $405 million and non-GAAP net income was $1 per share, exceeding the high end of guidance. These results also drove strong cash flows in the fourth quarter, with operating cash flow of nearly $42 million and free cash flow of over $36 million.

第四季度收入為 4.05 億美元，非 GAAP 淨收入為每股 1 美元，超過指導值的上限。這些結果還推動了第四季度的強勁現金流，運營現金流接近 4200 萬美元，自由現金流超過 3600 萬美元。

For the full fiscal year, revenue increased 15% to nearly $1.6 billion, and non-GAAP net income increased 26% to $3.81 per share. Total operating cash flow for the year was a record $147 million, up $9 million from a year ago, and free cash flow was also a record at $129 million, up a healthy 23% from a year ago.

整個財年，收入增長 15% 至近 16 億美元，非 GAAP 淨收入增長 26% 至每股 3.81 美元。全年運營現金流總額達到創紀錄的 1.47 億美元，比一年前增加 900 萬美元，自由現金流也達到創紀錄的 1.29 億美元，比一年前健康增長 23%。

As I'm sure you know, the U.S. Department of Commerce export ban to Huawei that began in the middle of the quarter came as a surprise to the industry.

我相信你知道，美國商務部從本季度中期開始對華為實施出口禁令令業界感到意外。

We do manufacture products for some of our customers who ship to Huawei. While we estimate that this negatively impacted our fourth quarter revenue by approximately $9 million, we were able to offset that by better-than-anticipated performance from other businesses.

我們確實為一些向華為發貨的客戶製造產品。雖然我們估計這對我們第四季度的收入造成了大約 900 萬美元的負面影響，但我們能夠通過其他業務好於預期的業績來抵消這一影響。

Looking at our business by end markets, optical communications revenue was $300 million, up -- or up about $2 million from the third quarter and represented 74% of total revenue.

從終端市場來看我們的業務，光通信收入為 3 億美元，比第三季度增加約 200 萬美元，佔總收入的 74%。

Within optical communications, telecom revenue was down $2 million from the third quarter to $215 million or 72% of optical revenue primarily due to the impact of the Huawei ban, with other telecom products offsetting some of the Huawei-related pressure. We had anticipated that datacom revenue would be up slightly from the third quarter and in fact, we saw a 5% sequential growth to $85 million or 28% of optical communications revenue.

在光通信領域，電信收入較第三季度下降 200 萬美元至 2.15 億美元，佔光通信收入的 72%，這主要是由於華為禁令的影響，其他電信產品抵消了部分與華為相關的壓力。我們曾預計數據通信收入將比第三季度略有增長，事實上，我們看到環比增長 5%，達到 8500 萬美元，佔光通信收入的 28%。

By technology, silicon photonics-based optical communications revenue grew 10% from the third quarter to nearly $90 million, the highest level in 3 years, and represented 30% of optical communications revenue, the highest level in more than a year. Revenue from QSFP28 and QSFP56 transceivers was $46 million, up $2 million from the third quarter primarily from increased revenue from QSFP56 programs.

從技術來看，基於矽光子的光通信收入比第三季度增長了 10%，達到近 9000 萬美元，為 3 年來的最高水平，佔光通信收入的 30%，為一年多來的最高水平。QSFP28 和 QSFP56 收發器的收入為 4600 萬美元，比第三季度增加 200 萬美元，這主要是由於 QSFP56 項目的收入增加。

By data rate, 100-gig programs continue to represent nearly half of optical communications revenue at $144 million. Products raises at speeds of 400 gig and above were roughly flat with the third quarter at $23 million or 8% of optical communications revenue.

按數據速率計算，100 兆節目繼續佔光通信收入的近一半，達到 1.44 億美元。以 400 gig 及以上速度增長的產品與第三季度大致持平，為 2300 萬美元，佔光通信收入的 8%。

Looking at nonoptical communications, revenue was a record $105 million, up 4% from Q3, with gains coming primarily from the industrial laser markets. Revenue from industrial lasers was a record $53 million or up 9% sequentially, though we don't expect to sustain this level in Q1. Automotive and sensor revenue were both stable at $23 million and $4.5 million, respectively. Finally, other nonoptical communications revenue was also stable at $24 million. Revenue from new business increased 8% from the third quarter to $165 million and represented a record 41% of total revenue in the quarter.

看看非光通信，收入達到創紀錄的 1.05 億美元，比第三季度增長 4%，收益主要來自工業激光市場。工業激光器的收入達到創紀錄的 5300 萬美元，環比增長 9%，但我們預計第一季度不會維持這一水平。汽車和傳感器收入分別穩定在 2300 萬美元和 450 萬美元。最後，其他非光通信收入也穩定在 2400 萬美元。新業務收入比第三季度增長 8%，達到 1.65 億美元，佔本季度總收入的 41%，創歷史新高。

Last quarter, we discussed an agreement with Infinera, where we would be assuming manufacturing responsibilities for the products being manufactured at their Coriant division in Berlin. We've made significant progress in transferring the production of these products from Berlin to our facilities in Thailand, and this process is now essentially complete. While revenue from this program in the fourth quarter was immaterial, we expect it to begin to ramp in Q1 and contribute even more meaningfully beyond that.

上個季度，我們與 Infinera 討論了一項協議，我們將承擔其在柏林 Coriant 部門生產的產品的製造責任。我們在將這些產品的生產從柏林轉移到我們在泰國的工廠方面取得了重大進展，這一過程現已基本完成。雖然第四季度該計劃的收入並不重要，但我們預計它將在第一季度開始增長，並在此之後做出更有意義的貢獻。

We continue to believe that Infinera could become a 10% customer by the end of fiscal 2020, up from single digits in fiscal 2019. Speaking of which, we had one 10% customer in fiscal 2019, and that was again Lumentum, with combined Lumentum and Oclaro revenue representing 24% of our total revenue in fiscal 2019.

我們仍然相信，到 2020 財年末，Infinera 可能會成為 10% 的客戶，高於 2019 財年的個位數。說到這一點，我們在 2019 財年有一個 10% 的客戶，這又是 Lumentum，Lumentum 和 Oclaro 的總收入占我們 2019 財年總收入的 24%。

Operationally, we remained focused on continued improvements in efficiency and expanding capacity, while enhancing the benefits our customers value most, like our best-in-class on-time delivery, quality and service.

在運營方面，我們仍然專注於持續提高效率和擴大產能，同時增強客戶最看重的利益，例如我們一流的準時交貨、質量和服務。

To complement our ongoing cost-reduction objectives, we recently introduced a new initiative that we call [Half-half 2x], with the goal of doing what we do today with half the people, half the space and twice the output.

為了補充我們正在進行的降低成本的目標，我們最近推出了一項我們稱之為 [Half-half 2x] 的新計劃，目標是用一半的人員、一半的空間和兩倍的產出來完成我們今天所做的事情。

This Half-half 2x effort has had a number of positive effects already. Through this initiative, we have improved operational efficiency and reduced cycle times for a number of processes through increased automation and optimization and the elimination of non-value-add activities. This initiative has enabled us to free up close to 120,000 square feet of manufacturing space at our Pinehurst facility in Bangkok.

這種 2 倍半的努力已經產生了許多積極的效果。通過這一舉措，我們通過提高自動化和優化以及消除非增值活動，提高了運營效率並縮短了許多流程的周期時間。這一舉措使我們能夠在曼谷的派恩赫斯特工廠騰出近 120,000 平方英尺的製造空間。

These efficiency gains have effectively increased the available manufacturing footprint at Pinehurst by more than 20%. Half-half 2x is an ongoing process, whereby we expect to continue to reduce labor costs, improve cycle times and create more manufacturing space within existing facilities. As such, it means that our previous metric of how much of our Chonburi facility was either occupied or spoken for is no longer a meaningful gauge of our available capacity. It also means that we may be able to push the buildout of a second building at our Chonburi campus until fiscal 2021 instead of later in fiscal 2020.

這些效率提升有效地將 Pinehurst 的可用製造足跡增加了 20% 以上。一半一半 2x 是一個持續的過程，我們希望繼續降低勞動力成本，縮短週期時間並在現有設施內創造更多的製造空間。因此，這意味著我們之前衡量我們春武里府設施有多少被佔用或發言的指標不再是衡量我們可用容量的有意義的指標。這也意味著我們可以將春武里校區第二座建築的擴建推遲到 2021 財年，而不是 2020 財年晚些時候。

As reflected in our guidance, our customers are working through the restart of certain shipments to Huawei. With this, we expect the timing of changes in supply chains to temporarily impact some of our optical communications business in the first quarter. Combined with the near-term slowdown in the industrial laser markets, we anticipate a sequential decline in total revenue of approximately 4% in Q1 from our record performance in Q4.

正如我們的指南所反映的那樣，我們的客戶正在努力重新開始向華為發貨。有鑑於此，我們預計供應鏈變化的時機將在第一季度暫時影響我們的部分光通信業務。結合工業激光市場的近期放緩，我們預計第一季度的總收入將比第四季度的創紀錄業績下降約 4%。

We believe that the impact of these supply chain resets will be temporary, and we remain very optimistic over the longer term.

我們認為，這些供應鏈重置的影響將是暫時的，從長遠來看，我們仍然非常樂觀。

Looking ahead to fiscal 2020, we expect to further capitalize on our leading position as the manufacturer of choice for our customers' most complex products. We're particularly pleased with our record financial performance for the fourth quarter, especially given the unanticipated dynamics impacting a small number of our customers.

展望 2020 財年，我們希望進一步利用我們作為客戶最複雜產品的首選製造商的領先地位。我們對第四季度創紀錄的財務業績感到特別滿意，特別是考慮到影響我們少數客戶的意外動態。

Our revenue growth of 15% for the fiscal year reflects our ability to grow faster than the markets we serve.

我們本財年 15% 的收入增長反映了我們比我們所服務的市場增長更快的能力。

Our ongoing Half-half 2x initiative is generating exciting results for us that enable us to better serve our customers while improving our efficiency. As a result, we believe we are very well positioned to continue to deliver positive long-term trends as a leading contract manufacturer for the most complex products. We look forward to expanding our penetration within our target industries.

我們正在進行的 Half-half 2x 計劃正在為我們帶來令人興奮的結果，使我們能夠更好地為客戶服務，同時提高我們的效率。因此，我們相信，作為最複雜產品的領先合同製造商，我們有能力繼續提供積極的長期趨勢。我們期待擴大我們在目標行業的滲透率。

Now let me turn the call over to TS to discuss the details of our fourth quarter performance and our outlook. TS?

現在讓我把電話轉給 TS 來討論我們第四季度業績的細節和我們的前景。TS？

Thank you, Seamus, and good afternoon, everyone. I will provide you with more details on our performance by end market and our financial results for Q4 as well as our guidance for Q1 for fiscal year 2020.

謝謝 Seamus，大家下午好。我將為您提供有關我們按終端市場劃分的業績和我們第四季度的財務業績以及我們對 2020 財年第一季度的指導的更多詳細信息。

Total revenue in the fourth quarter of fiscal year 2019 was a record $405.1 million, that's at the upper end of our guidance range after adjusting for a $1.9 million contribution due to our adoption of ASC 606 this year. Going forward, we will be both guiding and reporting results under ASC 606.

2019 財年第四季度的總收入達到創紀錄的 4.051 億美元，在調整了我們今年採用 ASC 606 的 190 萬美元貢獻後，處於我們指導範圍的上限。展望未來，我們將根據 ASC 606 指導和報告結果。

Non-GAAP net income was $1 per share and was also above our guidance range even after a $0.01 contribution from our adoption of ASC 606.

非 GAAP 淨收入為每股 1 美元，即使在我們採用 ASC 606 貢獻 0.01 美元之後，也高於我們的指導範圍。

A foreign exchange tailwind of $1.8 million contributed $0.05 to EPS upside. For the full year, revenue was $1.584 billion, an increase of 15% from fiscal year of 2018, and non-GAAP net income was $3.81, an increase of 26% from a year ago.

180 萬美元的外匯順風為 EPS 上漲貢獻了 0.05 美元。全年營收為15.84億美元，較2018財年增長15%，非美國通用會計準則淨利潤為3.81美元，較上年增長26%。

For the fourth quarter, optical communications represented 74% of revenue with nonoptical communications representing 26% of revenue.

第四季度，光通信佔收入的 74%，非光通信佔收入的 26%。

Now turning to the details of our P&L. Reconciliations of GAAP to non-GAAP measures is included in our earnings press release and investor presentation, which you can find on our website.

現在轉向我們損益表的細節。GAAP 與非 GAAP 措施的調節包含在我們的收益新聞稿和投資者介紹中，您可以在我們的網站上找到。

Non-GAAP gross margin in the fourth quarter was 11.8%, a 30-basis point decrease from the third quarter, largely due to a shift in product mix partly related to the ban on shipments to Huawei for a couple of our customers.

第四季度非美國通用會計準則毛利率為 11.8%，比第三季度下降 30 個基點，這主要是由於產品組合發生變化，部分原因是我們的幾個客戶被禁止向華為發貨。

Non-GAAP operating expense was $11.3 million in the fourth quarter. As a result, non-GAAP operating income was $36.7 million and non-GAAP operating margin was 9.1% compared to 9.5% in the third quarter primarily due to lower gross margins.

第四季度非美國通用會計準則運營費用為 1130 萬美元。因此，非美國通用會計準則營業收入為 3670 萬美元，非美國通用會計準則營業利潤率為 9.1%，而第三季度為 9.5%，主要原因是毛利率較低。

Taxes in the quarter were $1.2 million, and our normalized effective tax rate was 4.4%, below our anticipated effective tax rate of 6% to 7%.

本季度的稅收為 120 萬美元，我們的標準化有效稅率為 4.4%，低於我們預期的 6% 至 7% 的有效稅率。

Non-GAAP net income was above our guidance range at $37.6 million in the fourth quarter or $1 per diluted share, as I indicated earlier. On a GAAP basis, which includes share-based compensation expenses and amortization of debt issuing costs, net income for the fourth quarter was $33 million or $0.88 per diluted share, above the high end of guidance.

正如我之前指出的那樣，第四季度非 GAAP 淨收入高於我們的指導範圍 3760 萬美元或每股攤薄收益 1 美元。根據 GAAP 基礎，包括基於股份的補償費用和債務發行成本攤銷，第四季度淨收入為 3300 萬美元或每股攤薄收益 0.88 美元，高於指引的上限。

Turning to the balance sheet and cash flow statement. At the end of the fourth quarter, cash and investments were $444.7 million, an increase of $35.8 million from the third quarter.

轉向資產負債表和現金流量表。第四季度末，現金和投資為 4.447 億美元，比第三季度增加 3580 萬美元。

Operating cash flow in the quarter was $41.9 million, and with CapEx of $5.5 million, free cash flow was $36.4 million in the fourth quarter.

本季度運營現金流為 4190 萬美元，資本支出為 550 萬美元，第四季度自由現金流為 3640 萬美元。

For the full year, we generated operating cash flow of $147.4 million and free cash flows of $128.7 million, both of which are record. Due to the timing of open trading window, we did not opportunistically repurchase any shares during the fourth quarter. As such, 62.2 million remains in our share repurchase program, and we'll continue to evaluate market conditions to opportunistically repurchase shares when possible.

全年，我們產生了 1.474 億美元的運營現金流和 1.287 億美元的自由現金流，均創歷史新高。由於開放交易窗口的時間，我們在第四季度沒有機會主義地回購任何股票。因此，我們的股票回購計劃中仍有 6220 萬美元，我們將繼續評估市場狀況，以便在可能的情況下適時回購股票。

I would now like to turn to our guidance for the first quarter of fiscal year 2020, which is now based on ASC 606.

我現在想談談我們對 2020 財年第一季度的指導，該指導現在基於 ASC 606。

As Seamus described, we expect revenue to be between $386 million and $394 million.

正如 Seamus 所描述的，我們預計收入將在 3.86 億美元至 3.94 億美元之間。

From a margin perspective, we expect non-GAAP gross margin to moderate slightly from the fourth quarter due to the impacts of annual merit increases, and we expect to see gross margin improve during the year towards our target range of 12% to 12.5%.

從利潤率的角度來看，由於年度業績增長的影響，我們預計非美國通用會計準則毛利率將從第四季度開始略有放緩，我們預計年內毛利率將提高至我們 12% 至 12.5% 的目標範圍。

From an EPS perspective, we anticipate non-GAAP net income per share in the first quarter to be in the range of $0.80 to $0.84, and GAAP net income per share of $0.64 to $0.68 based on approximately 37.4 million fully diluted shares outstanding.

從每股收益的角度來看，我們預計第一季度非 GAAP 每股淨收入在 0.80 美元至 0.84 美元之間，基於約 3740 萬股完全稀釋的已發行股票，GAAP 每股淨收入為 0.64 美元至 0.68 美元。

In conclusion, we are excited with our record performance in the quarter. We remain very well positioned to deliver profitable growth over the longer term as leading manufacturer of the most complex high-mix products.

總之，我們對本季度創紀錄的業績感到興奮。作為最複雜的高混合產品的領先製造商，我們仍然處於有利地位，可以在長期內實現盈利增長。

Operator, we would now like to open the call for questions.

接線員，我們現在想打開問題電話。

(Operator Instructions) And our first question will come from the line of Samik Chatterjee with JPMorgan.

（操作員說明）我們的第一個問題將來自摩根大通的 Samik Chatterjee。

If I could just start off on the guidance itself. You mentioned a couple of drivers why you have a sequential decline in the revenue going from the fourth quarter to the first quarter. But if you can just kind of help us with the puts and takes between the fourth quarter and the first quarter, or including how much are you expecting in terms of a headwind from the sanctions on Huawei, as well as kind of -- sounds more like you're giving up some share as you do the supply chain reset. So can you just help us think about the -- quantifying those impacts?

如果我可以從指南本身開始。你提到了幾個驅動因素，為什麼你的收入從第四季度到第一季度連續下降。但是，如果你能幫助我們解決第四季度和第一季度之間的問題，或者包括你對華為製裁的逆風有多大的預期，以及 - 聽起來更多就像你在重置供應鏈時放棄了一些份額。那麼，您能否幫助我們考慮——量化這些影響？

This is Seamus. Thank you for the question. A couple of things. There's a few things we outlined in our prepared remarks, so let me add a little bit of color. First of all, on the -- color on the supply chain reset, our customers have been finding resolution to the Huawei ban and in some cases, they've been finding that by redirecting certain products to other of their customers, which means they've had to maybe repurpose existing products to suit other customers. So that has presented a few, I would call them, supply chain challenges, albeit short term and temporary in nature. So that's the first point.

這是西默斯。感謝你的提問。幾件事。我們在準備好的評論中概述了一些內容，所以讓我添加一點色彩。首先，關於 - 供應鏈重置的顏色，我們的客戶一直在尋找解決華為禁令的方法，在某些情況下，他們發現通過將某些產品重定向到其他客戶，這意味著他們'我們可能不得不重新調整現有產品的用途以適應其他客戶。所以這已經提出了一些，我稱之為供應鏈挑戰，儘管是短期的和暫時的。這是第一點。

Secondly, as the -- in terms of the overall demand, let's say, for Huawei, I should point out, Huawei is not a direct customer of ours. We don't supply anything directly to Huawei. But it does seem, just from the industry publications that we've read, probably the same as you've read, that Huawei's total demand seems to be slower due to slowness in China but also due to maybe some of the stigma, we call it, hanging over Huawei in international markets like Europe.

其次，就整體需求而言，對於華為，我應該指出，華為不是我們的直接客戶。我們不直接向華為提供任何東西。但從我們讀過的行業出版物來看，華為的總需求似乎確實放緩了，原因是中國的放緩，但也可能是因為一些恥辱，我們稱之為它，在歐洲等國際市場上籠罩著華為。

So we do think that, overall, Huawei is down. We don't have a good feel for what that might be percentage terms, again, as we don't supply Huawei directly. But we do feel it is being a factor, if you like, in Q1.

所以我們確實認為，總的來說，華為是倒閉的。由於我們不直接向華為供貨，因此我們對可能的百分比條款沒有很好的感覺。但我們確實認為這是第一季度的一個因素，如果你願意的話。

And then thirdly, industrial lasers. Industrial lasers will continue to be down, we think, for another quarter or 2. We believe that the worldwide market, especially for welding and cutting, is down by about 10% quarter-on-quarter and we think that's going to continue for a couple of quarters.

第三，工業激光器。我們認為，工業激光器將繼續下降一兩個季度。我們認為全球市場，尤其是焊接和切割市場，環比下降約 10%，我們認為這種情況將持續一個季度幾個季度。

The final point I would make, just in terms of maybe the guidance of some of our customers relative to our guidance. Some of our customers are guiding up on 3D sensing significantly, which of course, is a product that we don't manufacture. We don't participate in 3D sensing.

我要說的最後一點，可能是我們的一些客戶相對於我們的指導的指導。我們的一些客戶正在大力指導 3D 傳感，當然，這不是我們製造的產品。我們不參與 3D 傳感。

As regards, are we losing share, we don't believe so. The short answer, I suppose, is we don't believe that we've lost any market share. We believe that we continue to be the #1 optoelectronics EMS company.

至於我們是否正在失去份額，我們不這麼認為。我想，簡短的回答是，我們認為我們沒有失去任何市場份額。我們相信我們將繼續成為排名第一的光電 EMS 公司。

As you can see from our results, we just posted record performance for revenue and profits. We once again generated significant cash, and we continue to work with our customers on new opportunities and to court new customers in new applications.

正如您從我們的結果中看到的那樣，我們剛剛發布了創紀錄的收入和利潤業績。我們再次產生了大量現金，我們將繼續與客戶合作尋找新機會，並在新應用中吸引新客戶。

In FY '19, we believe the EMS industry grew by about 7%. The optical industry grew by about 3%, and that includes 3D sensing. And we grew by about 15.5%. So we don't believe that we're losing any share.

在 19 財年，我們認為 EMS 行業增長了約 7%。光學行業增長了約 3%，其中包括 3D 傳感。我們增長了大約 15.5%。所以我們不認為我們正在失去任何份額。

Sure. Got it. If I can just follow-up quickly on the Infinera business that you mentioned, you are largely done with the move of the footprint from Berlin to your Thailand facility. What's -- was there any margin impact from that movement in this quarter itself? And how should I think about the impact on cash flow as you make that -- do that transition? Was that entirely your fiscal '19 impact or is there some impact on fiscal '20 as you do that transition?

當然。知道了。如果我能快速跟進您提到的 Infinera 業務，那麼您基本上已經完成了將足跡從柏林轉移到泰國工廠的工作。什麼是 - 本季度本身的這一變動是否對利潤率產生了影響？我應該如何考慮對現金流的影響——做這種轉變？這完全是你的 19 財年影響，還是在你進行過渡時對 20 財年有一些影響？

So I'll let TS maybe talk about the cash flow in a moment. Just on the overall impact on revenue and margin. So in Q4, we had a small improvement in the revenue because of the Coriant, the Infinera business. I think we called it an immaterial. So we had a small amount of revenue that we shipped in the quarter.

所以我會讓 TS 稍後談談現金流。只是對收入和利潤率的整體影響。因此，在第四季度，由於 Infinera 業務 Coriant，我們的收入略有改善。我想我們稱之為非物質。因此，我們在本季度交付了少量收入。

It was probably a headwind in terms of margin for the quarter as we did a startup costs. We had a lot of activity going on that we haven't fully covered those costs yet. So in Q4, I would say slightly positive to revenue and slightly negative to our margin.

這可能是本季度利潤率的逆風，因為我們計算了啟動成本。我們正在進行很多活動，但我們尚未完全支付這些費用。所以在第四季度，我會說對收入略有積極影響，對我們的利潤率略有負面影響。

Then in Q1, we're just beginning to ramp now in Q1. So we're obviously -- we're buying a lot of inventory. We've taken over a lot of inventory from the Germany facility. But we're just beginning to ramp that this quarter, and it will have, I would say, more of an impact this quarter but by no means -- we won't be up to full volume for another 1 or possibly 2 quarters.

然後在第一季度，我們才剛剛開始在第一季度開始增長。所以我們顯然 - 我們正在購買大量庫存。我們從德國工廠接管了大量庫存。但我們在本季度才剛剛開始增加，我想說，它會在本季度產生更大的影響，但絕不是——我們不會在另外 1 個或可能是 2 個季度達到最大容量。

And then as regards to cash flow impact, I'll let TS talk about that.

然後關於現金流影響，我會讓 TS 談談。

Yes. So Samik, on the cash flow side, as with any new customer, when they give their forecast, we buy inventory, we put in resources, we pay our labor ahead of collections and we give them a nice payment term. In this case, Infinera is a trusted long-term partner, and we extend the -- actually, the credit term a little bit. So I will say in the next 2 or 3 quarters, we will see a dip in our cash flow. And I expect by the end of the year, the fiscal year, the cash flow will be pretty much due to rise or kind of breakeven at that level.

是的。所以 Samik，在現金流方面，與任何新客戶一樣，當他們給出他們的預測時，我們購買庫存，我們投入資源，我們在收款前支付我們的勞動力，我們給他們一個很好的付款條件。在這種情況下，Infinera 是值得信賴的長期合作夥伴，我們延長了——實際上，延長了一點信用期限。所以我會說在接下來的 2 或 3 個季度中，我們的現金流量將下降。我預計到今年年底，即本財年，現金流量將在很大程度上由於該水平的上升或某種程度的收支平衡而出現。

Is that helpful?

這有幫助嗎？

Yes. Yes.

是的。是的。

And our next question will come from the line of John Marchetti with Stifel.

我們的下一個問題將來自 John Marchetti 與 Stifel 的合作。

TS, I appreciate kind of the color you just gave there on the cash flows. Could you maybe talk about just the gross margin in fiscal 4Q itself? It came in a little bit below what we were expecting. Obviously, you had a little bit of upside to revenue. Just curious if you can talk a little bit about that sequential decline in margins, specifically in that fourth quarter.

TS，我很欣賞你剛剛在現金流量上給出的那種顏色。您能否談談第四財季本身的毛利率？它略低於我們的預期。顯然，你的收入有一點上升空間。只是好奇您是否可以談談利潤率的連續下降，特別是在第四季度。

Okay. So we're looking at a June quarter, right, from a March quarter. And as you probably know, Seamus just described, we have a scale of a Huawei ban, okay? That Huawei ban, it come as a surprise, loss of efficiency, a lot of wait-and-see time frame. And at that point, as a manufacturing guy, if you wait and see, you lose efficiency. So we lost some efficiency over there. And also you heard about Coriant startup. As with any new product we startup, we incur a significant startup cost, so that would drag the margin a little bit.

好的。所以我們正在看一個 6 月的季度，從 3 月的季度開始。你可能知道，Seamus 剛剛描述過，我們有一定規模的華為禁令，好嗎？那個華為禁令，讓人措手不及，效率低下，時間觀望很多。到那時，作為製造商，如果你觀望，你就會失去效率。所以我們在那裡失去了一些效率。您還聽說過 Coriant 創業公司。與我們啟動的任何新產品一樣，我們會承擔大量的啟動成本，因此這會稍微拖累利潤率。

And we also have a 1 month of merit increase. We started to give all our employees merit increase starting June 1. So there is a 1-month impact there. Therefore, the margin dropped from 12.1% in FQ3, March quarter, to 11.8% in the June quarter. And that basically is 2 or 3 factors account for that in a margin erosion.

而且我們還有1個月的加薪。從 6 月 1 日開始，我們開始給所有員工加薪。所以會有 1 個月的影響。因此，利潤率從 3 月份季度的 FQ3 的 12.1% 下降到 6 月份季度的 11.8%。這基本上是 2 或 3 個因素導致利潤率下降。

Okay. Okay. And then Seamus, you mentioned obviously in your prepared remarks, as the Infinera business starts to scale, that they could be a 10% customer. And I wanted to make sure that I heard you correctly. Do you think they can still be a 10% customer for the year even with a little bit of the slower ramp to start in the first couple of quarters? Or are you saying that once fully ramped, they could essentially be a 10% customer? I just want to make sure I think about how to load that potential revenue in as I'm modeling out the fiscal year.

好的。好的。然後是 Seamus，你在準備好的發言中明顯提到，隨著 Infinera 業務開始擴大，他們可能成為 10% 的客戶。我想確保我沒聽錯。你認為即使在前幾個季度開始的速度有所放緩，他們今年仍然可以成為 10% 的客戶嗎？還是您是說一旦完全升級，他們基本上可以成為 10% 的客戶？我只是想確保在為財政年度建模時考慮如何加載潛在收入。

Yes. We think -- well, we certainly think they'll be at that range at the end of the year. But we think there's a good chance they'll be a 10% customer for the full year actually.

是的。我們認為 - 好吧，我們當然認為他們會在今年年底達到這個範圍。但我們認為他們很有可能會成為全年 10% 的客戶。

Okay. Okay. And then just lastly on the laser color, Seamus. I mean obviously, with that market slowing down a little bit and so much still coming from your primary customer in that laser market. I'm just curious with that market now slowing a little bit, how have conversations changed? Or what's your outlook to bring on additional customers outside Lumentum through Amada? And how you're thinking about that for maybe fiscal '20 and beyond?

好的。好的。最後是激光顏色，Seamus。我的意思是很明顯，隨著那個市場的放緩一點點，還有很多仍然來自那個激光市場的主要客戶。我只是好奇那個市場現在有點放緩，談話發生了怎樣的變化？或者您對通過 Amada 在 Lumentum 之外帶來更多客戶的前景如何？您如何考慮 20 財年及以後的財政年度？

So we have a number of customers in the laser space. We have 3 or 4 of the kind of the big customers in that space. Lumentum is by no means our only customer. Again, from what we can see, the -- let's say cutting and precision welding market seem to be down about 10% quarter-on-quarter. And most of our customers in that space have guided down. And a lot of them are talking about significant pressure from Chinese suppliers who are moving into their space and really producing very low-cost products that our customers are finding it difficult to compete with.

所以我們在激光領域有很多客戶。我們在那個領域有 3 或 4 個大客戶。Lumentum 絕不是我們唯一的客戶。同樣，從我們所看到的情況來看，假設切割和精密焊接市場似乎環比下降了約 10%。我們在那個領域的大多數客戶都已經引導下來了。他們中的很多人都在談論來自中國供應商的巨大壓力，這些供應商正在進入他們的領域並真正生產我們的客戶發現難以與之競爭的非常低成本的產品。

So there's kind of 2 parts to the answer. There's short term, long term. Short term, of course, it's not good in the sense that a 10% slowdown in a market we serve is not a good thing. However, from our perspective, we think it might not be a bad thing in the longer term because we do feel it will act as a catalyst and encourage our customers to maybe move to outsource faster. Because really for them to compete with very low-cost Chinese competitors, they are really going to have to use outsourcing as a tool to allow them to compete.

所以答案分為兩部分。有短期，有長期。從短期來看，當然，從我們服務的市場放緩 10% 不是一件好事的意義上說，這並不好。然而，從我們的角度來看，我們認為從長遠來看這可能不是一件壞事，因為我們確實認為它會起到催化劑的作用，並鼓勵我們的客戶可能更快地轉向外包。因為要真正讓他們與成本非常低的中國競爭對手競爭，他們真的將不得不使用外包作為一種工具來讓他們參與競爭。

So we do think the competition our customers are facing from Chinese suppliers, albeit causing some short-term headwinds, we believe could act as a catalyst for outsourcing in the longer term, if that makes sense.

因此，我們確實認為我們的客戶面臨來自中國供應商的競爭，儘管造成了一些短期的不利因素，但我們認為，如果有道理的話，從長遠來看，這可能會成為外包的催化劑。

And our next question will come from the line of Troy Jensen with Piper Jaffray.

我們的下一個問題將來自 Troy Jensen 與 Piper Jaffray 的合作。

Congrats on the nice results, gentlemen.

先生們，祝賀你們取得了不錯的成績。

Thank you, Troy.

謝謝你，特洛伊。

Thank you.

謝謝。

So Seamus, for you, I guess I'd like to talk a little bit about silicon photonics. And you had a record quarter here but 2 of your top 3 customers weren't in here. So just thoughts on that combination and what it means to Fabrinet longer term. And then ultimately, can silicon photonics still provide some of the same growth that you've had historically with those 2 -- from this merchant?

所以 Seamus，對於你來說，我想我想談談矽光子學。你在這裡創造了一個創紀錄的季度，但你的前 3 大客戶中有 2 個不在這裡。所以只是想一想這種組合以及它對 Fabrinet 的長期意義。然後最終，矽光子學是否仍能提供與這 2 種歷史上相同的增長——來自這個商人？

Well, first of all, it's very early. We don't really know what the impact would be as of yet. Again, historically, when our customers have come together, it's tended to be good for us historically. This one, it's far too early to say.

好吧，首先，現在還很早。到目前為止，我們真的不知道會產生什麼影響。同樣，從歷史上看，當我們的客戶走到一起時，從歷史上看，它往往對我們有利。這個，現在說還為時過早。

We still think that silicon photonics has a lot of legs left. And we do feel we're -- certainly, in the EMS space, we're the leading contract manufacturer manufacturing silicon photonics-based products. And we do feel we are the supplier of choice for those type of products. They're very complex products, very difficult to manufacture with high reliability and high yield. We've been doing it for quite a while so we do feel we have an advantage over our competition.

我們仍然認為矽光子學還有很多路要走。我們確實覺得我們 - 當然，在 EMS 領域，我們是製造基於矽光子學的產品的領先合同製造商。我們確實覺得我們是這類產品的首選供應商。它們是非常複雜的產品，很難以高可靠性和高產量製造。我們已經這樣做了很長一段時間，所以我們確實覺得我們比競爭對手更有優勢。

The long-term impact of, let's say, Cisco and Acacia, we're not sure yet at this stage, it's very early to say. But we don't -- right now, we don't see anything negative. We think it's a good combination. They are a good match. And we're kind of excited to see where Cisco tends to -- intends to take the product in the future.

比方說，Cisco 和 Acacia 的長期影響，我們現階段還不確定，現在說還為時過早。但我們沒有——現在，我們沒有看到任何負面影響。我們認為這是一個很好的組合。他們很般配。我們很高興看到思科傾向於 - 打算在未來採用該產品。

So within silicon photonics, is it still 3 firms that make up the bulk of that business?

那麼在矽光子學中，是否仍然有 3 家公司佔據了該業務的大部分？

Yes. It would be, yes. But there's always -- there's also a number of, I would say, smaller players who have some really, I would say, really exciting technology, albeit that they're quite small in terms of their overall size. It's quite small but they do have some exciting technology.

是的。會的，是的。但總有——我想說，還有一些規模較小的玩家擁有一些真正令人興奮的技術，儘管它們的整體規模很小。它很小，但他們確實擁有一些令人興奮的技術。

Okay. Perfect. And then last question and I'll cede the floor. Just thoughts on your QSFP28 versus 56, can we see growth in both segments? Or is it just 56 going to drive the growth for the business going forward?

好的。完美的。然後是最後一個問題，我將放棄發言權。只是想一想您的 QSFP28 與 56，我們能看到這兩個細分市場的增長嗎？還是僅僅 56 將推動業務向前發展？

Based on the data in front of me, I think kind of across broad-based. So I see both growing. FQ4, we did $47 million, higher than FQ3. And moving forward, we see maybe a little bit slowdown because some of the consolidation going on with Oclaro and CIG and so on. So yes. But we're still pretty optimistic about this form factor, QSFP28 as well as the 56.

根據我面前的數據，我認為這具有廣泛的基礎。所以我看到兩者都在增長。FQ4，我們做了 4700 萬美元，高於 FQ3。展望未來，我們可能會看到一些放緩，因為 Oclaro 和 CIG 等正在進行一些整合。所以是的。但我們仍然對這種外形規格、QSFP28 和 56 非常樂觀。

And our next question will come from the line of Michelle Waller with Needham.

我們的下一個問題將來自 Michelle Waller 與 Needham 的對話。

This is Michelle on for Alex. So I had a quick one on SG&A. Looks like it increased about 12% quarter-over-quarter, and I was just wondering if that is due to the larger revenue for the quarter. Or if there is any other factors going on there that just came in quite a bit higher than we were modeling?

這是亞歷克斯的米歇爾。所以我很快就了解了 SG&A。看起來它比上一季度增長了大約 12%，我只是想知道這是否是由於本季度收入增加所致。或者是否還有其他因素比我們建模的要高很多？

Okay. Thanks for the question, Michelle. FQ4, about $1.2 million higher than the previous quarter because we go through a restructuring and try to beef up our sales and marketing function, very important for the future. So we hired EVP Sales and Marketing, as previously announced. And now he's trying to build his team. So moving forward, I will expect operating expense is around $11.3 million to $11.5 million per quarter moving forward.

好的。謝謝你的問題，米歇爾。FQ4，比上一季度高出約 120 萬美元，因為我們進行了重組並試圖加強我們的銷售和營銷職能，這對未來非常重要。因此，正如之前宣布的那樣，我們聘請了銷售和營銷執行副總裁。現在他正在努力建立他的團隊。因此，展望未來，我預計未來每季度的運營費用約為 1130 萬至 1150 萬美元。

Okay. That's really helpful. And one quick one, on the [Half over Half 2x] program, you were talking about increasing the manufacturing efficiencies. So this seems like that's going to be push out the buildout that you guys were going to potentially have in fiscal '20 in the Chonburi facility, or I mean area. Just wondering if you can give some detail around that. I think you said, was it 20% increase in efficiencies? And what the utilization rate would be based off of that now? And yes, that would be helpful, any color there.

好的。這真的很有幫助。一個快速的，在 [Half over Half 2x] 計劃中，您正在談論提高製造效率。因此，這似乎將推動你們在 20 財年春武里工廠或我的意思是地區可能擁有的擴建。只是想知道您是否可以提供一些詳細信息。我想你說過，效率提高了 20% 嗎？現在的利用率是多少？是的，那會有幫助，那裡有任何顏色。

Sure. So our main campus in Pinehurst, most of our existing customers, when they have new business that they want to bring our way, they really want to bring that business up in Pinehurst. They don't want to have their business split between Pinehurst and Chonburi. So at Chonburi, we target more for new customers, new business we're bringing in.

當然。因此，我們在 Pinehurst 的主校區，我們的大多數現有客戶，當他們有新業務想要為我們帶來時，他們真的希望在 Pinehurst 開展這項業務。他們不希望在 Pinehurst 和 Chonburi 之間分割業務。因此，在春武里府，我們更多地瞄準新客戶和我們正在引進的新業務。

Therefore, in order for us to be able to grow with our existing customers, we need to be more efficient, we need to create space. And over the last year or so we've created about 120,000 square feet of manufacturing space in Pinehurst. So that's -- it's about a 20% increase in the manufacturing space that we have in Pinehurst, which is just a -- it's a really good result. But it means we're able to bring in new business.

因此，為了讓我們能夠與現有客戶一起成長，我們需要提高效率，我們需要創造空間。在過去一年左右的時間裡，我們在派恩赫斯特創造了大約 120,000 平方英尺的製造空間。這就是 - 我們在 Pinehurst 的製造空間增加了大約 20%，這只是 - 這是一個非常好的結果。但這意味著我們能夠帶來新的業務。

For example, like the Infinera business, the majority of the Infinera business, the product manufacturing will be in Pinehurst. Some of the repair and upgrades business, that's kind of a space hog, that will be in Chonburi, but the vast majority of that business will be in Pinehurst.

例如，與 Infinera 業務一樣，Infinera 業務的大部分產品製造將在 Pinehurst 進行。一些維修和升級業務，這有點像太空豬，將在春武里，但絕大多數業務將在 Pinehurst。

So this is an initiative we've had going for some time. We've never really talked about it publicly before, but it's really part of the DNA of the company internally about really doing more with less. The name we've put on it is [Half-half 2x]. Half the space, half the people, 2x the output. But it's a way of really doing more with less, creating space, being more efficient so that we can basically grow the company and bring in new business. And that does mean, then we can -- I mean 120,000 square feet, it's a lot of space. It means we think we will be able to push out the buildout of the next building in Chonburi to fiscal 2021.

所以這是我們已經進行了一段時間的倡議。我們以前從未真正公開談論過它，但這確實是公司內部 DNA 的一部分，即真正做到事半功倍。我們給它起的名字是 [Half-half 2x]。一半的空間，一半的人，兩倍的產出。但這是一種真正做到事半功倍、創造空間、提高效率的方式，這樣我們就可以從根本上發展公司並引入新業務。這確實意味著，然後我們可以——我的意思是 120,000 平方英尺，這是一個很大的空間。這意味著我們認為我們將能夠將春武里府下一座建築的擴建工作推遲到 2021 財年。

And our next question will come from the line of Tim Savageaux with Northland Capital.

我們的下一個問題將來自 Northland Capital 的 Tim Savageaux。

I'm going to go back at silicon photonics for a moment and then over to a higher-level questions. For silicon photonics, I wonder if you can characterize the growth in the June quarter as being driven more by telecom or datacom. And then do you expect silicon photonics to continue to grow into the September quarter?

我將暫時回到矽光子學，然後再討論更高層次的問題。對於矽光子學，我想知道您是否可以將 6 月季度的增長描述為更多地由電信或數據通信驅動。然後你預計矽光子學將繼續增長到 9 月這個季度嗎？

Tim, this is TS. By looking at the data, June versus March quarter, silicon photonic grew about 10%: 82% to 90%. I would say both segments, telecom and datacom, on the silicon photonics are growing. I would say maybe the datacom grows slightly faster, but both segments are growing.

蒂姆，這是 TS。通過查看數據，6 月與 3 月季度相比，矽光子增長了約 10%：82% 至 90%。我會說矽光子學的兩個領域，電信和數據通信都在增長。我想說也許數據通信增長速度稍快，但兩個部分都在增長。

Is that helpful?

這有幫助嗎？

It is.

這是。

And then moving on to Q1, I think Seamus already mentioned that we might see a temporary dip there because some of the telecom product go through some rationalization. Again, I think both sectors from June quarter to September quarter might be slightly down a little bit from the June quarter level.

然後轉到第一季度，我認為 Seamus 已經提到我們可能會看到那裡暫時下降，因為一些電信產品經歷了一些合理化。同樣，我認為從 6 月季度到 9 月季度的兩個行業都可能比 6 月季度的水平略有下降。

Got it. And that kind of feeds into my next question, which is, if you look at the overall sequential guide, I guess down about $15 million midrange. Based on your earlier comments, seems like the bulk of that, maybe 2/3, I don't know, is on the noncommunication side, given the commentary about 10% sequential decline, I don't know if that's what you meant for the overall optical business. So could you characterize your guidance in terms of nonoptical versus optical? And then within optical, what you expect telecom versus datacom?

知道了。這就是我的下一個問題，如果你看一下整體順序指南，我猜中檔下降了大約 1500 萬美元。根據你之前的評論，似乎其中大部分，我不知道，可能是 2/3，是在非溝通方面，考慮到關於連續下降 10% 的評論，我不知道這是否是你的意思整體光學業務。那麼，您能否根據非光學與光學來描述您的指導？然後在光纖中，您對電信與數據通信的期望是什麼？

Normally, we don't break down the guidance into the kind of finite detail. But I think Seamus mentioned that the commercial laser, right now, the whole industry is down.

通常，我們不會將指南分解成有限的細節。但我認為 Seamus 提到商用激光器，現在整個行業都在下滑。

Yes, 10%.

是的，10%。

Yes. So we expect FQ1 will be down from the June quarter, therefore, commercial laser, which is the nonoptical communication side. And on the optical communication side, we see essentially, datacom will be down again. Telecom, at best, maybe flat, yes. So currently, think of the bulk of the guidance here. But we don't normally go down into silicon photonic level or QSFP28 levels.

是的。因此，我們預計 FQ1 將低於 6 月季度，因此，商業激光，即非光通信方面。在光通信方面，我們基本上看到，數據通信將再次出現故障。電信，充其量可能持平，是的。所以目前，想想這裡的大部分指導。但我們通常不會深入到矽光子級別或 QSFP28 級別。

I appreciate the color, I really do. And if I could follow up with one last one. Just to understand the supply chain reset narrative. I mean I think part of the strength of your footprint here is that you are located in Thailand and then ostensibly, kind of not subject to a lot of what might plague competitors who are more China-focused or China-based.

我很欣賞這種顏色，我真的很喜歡。如果我可以跟進最後一個。只是為了了解供應鏈重置的敘述。我的意思是我認為你在這裡足蹟的部分優勢在於你位於泰國然後表面上，有點不受很多可能困擾更關注中國或中國的競爭對手的影響。

And in that context, I guess I'm having a little problem understanding what you're referring to with regard to the disruption coming from OEMs. I guess ostensibly, component guys shipping to the Siennas of the world versus the Huaweis of the world? How do I connect that back to Fabrinet?

在這種情況下，我想我在理解你所指的關於來自原始設備製造商的中斷方面有點問題。我想從表面上看，組件人員運送到世界上的 Siennas 與世界上的華為？我如何將其連接回 Fabrinet？

So it's really a function, Tim, of if our customers, let's say, stop shipping a certain product to Huawei but they have another customer for that product but it's a slightly different variant or a slightly different flavor of the same product.

所以這真的是一個功能，蒂姆，如果我們的客戶，比方說，停止向華為運送某種產品，但他們有另一個客戶購買該產品，但它是同一產品的略有不同的變體或略有不同的口味。

So they'll have to do -- I wouldn't call it a redesign, it's more of an engineering change that might require us to take away 10 components and add 10 other components. So we'll have to go out and source those components. So it's really more -- I think one of the phrases are, one of our customers says, uses, repurposing, where they repurpose existing products. And in some cases, those products may be are already in production or about to start production.

所以他們必須做——我不會稱之為重新設計，它更像是一個工程變更，可能需要我們去掉 10 個組件並添加 10 個其他組件。所以我們必須出去採購這些組件。所以它真的更多 - 我認為其中一個短語是，我們的一位客戶說，使用，重新利用，他們重新利用現有產品的地方。在某些情況下，這些產品可能已經在生產或即將開始生產。

So like I said, we'll require, I wouldn't call it a full-fledged redesign, but more of an engineering change that once it goes through, it will create a component shortage that we have to go and fill.

所以就像我說的，我們需要，我不會稱之為全面的重新設計，而是更多的工程變更，一旦它通過，它會造成我們必須去填補的組件短缺。

Does that make sense?

那有意義嗎？

It does.

確實如此。

And our next question will come from the line of Fahad Najam with Cowen.

我們的下一個問題將來自 Fahad Najam 和 Cowen 的對話。

Actually, Tim kind of asked the question I was going to ask. So I'll ask them differently. In terms of your Q1 guidance, can you just help us understand in terms of the relative guide, or is it the industrial business that's the primary driver for the weakness or is it the optical communication? And within optical, is it the datacom or the telecom? Can you sort of -- without quantifying it, just help us prioritize which was the biggest driver for the relative weakness?

實際上，Tim 有點問了我要問的問題。所以我會以不同的方式問他們。就您的 Q1 指導而言，您能否幫助我們理解相對指導，或者是工業業務是弱點的主要驅動力，還是光通信？在光纖中，是數據通信還是電信？你能不能——在不量化的情況下，幫助我們優先考慮哪個是導致相對弱點的最大驅動因素？

And then related to the second question that Tim asked, if you look at the broad picture, U.S.-China trade relation is deteriorating. One would expect you would be a net beneficiary of this trade war. One would think that you would probably benefit from this trade escalation. So it's kind of puzzling that you're highlighting the supply disruption to Huawei as a headwind. But is there a benefit that you're seeing from the U.S.-China trade relations coming towards you?

然後關於蒂姆問的第二個問題，如果你從廣義上看，美中貿易關係正在惡化。人們會認為你會成為這場貿易戰的淨受益者。有人會認為您可能會從這次貿易升級中受益。因此，您強調華為的供應中斷是不利因素，這有點令人費解。但是，您是否從中美貿易關係中看到了對您有利的方面？

Fahad, yes, we are. But I think it's maybe slower to come than we would like. There's a number of -- a number of our customers are talking to us about switching their supply chain out of China and moving it to Thailand. Those conversations are still going on, that's maybe slower to move than we would like. But I do think you're right. It showed -- the tariff situation, we should be a beneficiary of that because we manufacture everything. All of the products we manufacture, we manufacture in Thailand. So yes, that should be, again, kind of a medium-term tailwind for us.

法赫德，是的，我們是。但我認為它的到來可能比我們希望的要慢。有很多 - 我們的一些客戶正在與我們討論將他們的供應鏈從中國轉移到泰國。這些對話仍在繼續，進展速度可能比我們希望的要慢。但我確實認為你是對的。它表明——關稅情況，我們應該從中受益，因為我們製造一切。我們生產的所有產品都是在泰國生產的。所以是的，這應該再次成為我們的中期順風。

You will appreciate, unfortunately, the 2 things, that's the component shortages and reengineering supply chains, they don't move at the same speed. When a component shortage happens, it affects us immediately. When a customer decides to read -- to move their supply chain, let's say, from China to Thailand, it can take, I would say, best case, 6 months, probably more like 9 months, maybe even up to a year. And the pacing item is usually not at the speed at which we can move the product. The pacing item is usually the qualification cycle with their customers.

不幸的是，您會欣賞兩件事，即組件短缺和重新設計供應鏈，它們不會以相同的速度移動。當發生組件短缺時，它會立即影響到我們。當客戶決定閱讀 - 將他們的供應鏈從中國轉移到泰國時，我認為最好的情況可能需要 6 個月，可能更像是 9 個月，甚至可能長達一年。而且節奏項目通常不是我們可以移動產品的速度。節奏項目通常是與客戶的資格週期。

So like I said, there are a number of conversations going on but nothing of any note to really talk about at this point. But your point is a very good one. Yes, certainly, the tariffs are a tailwind for us.

所以就像我說的，有很多對話正在進行，但目前沒有任何值得真正談論的話題。但是你的觀點非常好。是的，當然，關稅對我們來說是順風。

In relation to the Huawei situation, it's really more of a temporary, I would call it. It's a supply chain challenge that's a -- it's a high-quality problem because, again, our customers are finding other customers for their products separate from Huawei. But it does present a short-term challenge in terms of just finding the right component mix to be able to get those products shipped, and shipped out to our customers' customers.

關於華為的情況，我認為這更像是暫時的。這是一個供應鏈挑戰——這是一個高質量的問題，因為我們的客戶再次為他們的產品尋找與華為不同的其他客戶。但它確實提出了一個短期挑戰，即找到合適的組件組合，以便能夠運送這些產品，並運送給我們客戶的客戶。

But it is very much, I would call it, a temporary supply chain challenge. It's not like the component, the supply chain challenges we had over the last couple of years that were kind of industry-wide and pervasive and went on for several quarters. That's not what this is. This is purely a, I would say, a quarter, a temporary supply chain challenge that we feel is -- will be very short-lived.

但這在很大程度上是暫時的供應鏈挑戰。它不像組件，我們在過去幾年中遇到的供應鏈挑戰在整個行業範圍內普遍存在，並且持續了幾個季度。這不是這個。我想說，這純粹是一個季度，我們認為這是一個暫時的供應鏈挑戰——將是非常短暫的。

Regarding the Q1 guidance, if you could highlight, which is the primary driver, the industrial revenue business or the optical communications, any color on that?

關於第一季度的指導，如果你能強調，工業收入業務或光通信是主要驅動力，那有什麼顏色嗎？

I would say it's both. I mean the industrial lasers, again, that business does seem to be down about 10%, and a number of our customers have indicated that. The optical communications, we do believe, again, even though many of our customers are back in business with Huawei that, again, Huawei is a big customer of many of our customers. And even though they're back in business with Huawei, a few things to remember. Huawei remains on the Entity List and thus, not all products have been turned back on. And it does seem that even with Huawei being switched back on, Huawei's demand is lower in China and in Europe as well. So we think maybe Huawei is not back on at the same level. So therefore, our guidance is -- it's both, I would say, optical communications and industrial lasers.

我會說兩者兼而有之。我的意思是工業激光器，再次，該業務似乎確實下降了大約 10%，我們的一些客戶已經表示了這一點。光通信，我們再次相信，即使我們的許多客戶重新與華為開展業務，華為再次成為我們許多客戶的大客戶。即使他們重新與華為開展業務，也要記住一些事情。華為仍然在實體名單上，因此並非所有產品都已重新啟用。而且看起來即使重新啟用華為，華為在中國和歐洲的需求也有所下降。所以我們認為華為可能沒有回到同一水平。因此，我們的指導是——我想說的是光通信和工業激光器。

And we do have a question coming from the line of Dave Kang with B. Riley FBR.

我們確實有一個來自 Dave Kang 和 B. Riley FBR 的問題。

So Seamus, I think I believe you said that the Huawei impact was about $9 million for the quarter. So should we expect that to be like $18 million for the full quarter?

所以 Seamus，我想我相信你說過本季度華為的影響約為 900 萬美元。那麼我們是否應該期望整個季度達到 1800 萬美元？

Yes. I don't think so because I think the $9 million, yes, was, let's call it, half of the quarter. So I guess that's where you're getting the $18 million from. I do think our customers have, let's say, made up some of that. I'm not sure they made up all of that, but they certainly made up some of that. So I don't think it's a straightforward -- it's just 2x $9 million. It's probably a little bit less than that of an impact.

是的。我不這麼認為，因為我認為 900 萬美元，是的，我們可以稱之為本季度的一半。所以我想這就是您從中獲得 1800 萬美元的地方。我確實認為我們的客戶已經彌補了其中的一部分。我不確定他們是否彌補了所有這些，但他們肯定彌補了其中的一部分。所以我不認為這很簡單——它只是 2x 900 萬美元。它可能比影響小一點。

Got it. And then second question is you have said most of the times this Huawei situation to be temporary, but my understanding is that your customers that have reported already, they talk about EAR versus non-EAR. So they were able to ship non-EAR products. The ones they couldn't ship obviously are EAR products. So that may not be a temporary situation. Just wanted to get your understanding on the situation.

知道了。然後第二個問題是你說華為的情況大部分時間是暫時的，但我的理解是你的客戶已經報告，他們談論 EAR 與非 EAR。因此他們能夠運送非 EAR 產品。他們無法運送的顯然是 EAR 產品。所以這可能不是暫時的情況。只是想了解您的情況。

Oh, yes. Absolutely. I mean there's -- obviously, Huawei is still on the Entity List and it's up to our customers to get the necessary approvals to allow them to ship to Huawei. And that's actually the approach we take, we take a very careful approach. We don't ship anything until we're certain that our customer has the necessary approvals in place.

哦是的。絕對地。我的意思是 - 顯然，華為仍在實體名單上，我們的客戶需要獲得必要的批准才能向華為發貨。這實際上是我們採取的方法，我們採取非常謹慎的方法。在我們確定我們的客戶已獲得必要的批准之前，我們不會發貨。

Overall, though, I think with -- whether the products are on the -- I guess the point I was making, whether the products are on the list or not, overall, Huawei demand does seem to be down. And they have talked themselves about being down; I think I read today, $30 billion over the next 2 years because of the situation. And again, I think there's a little bit of maybe stigma even outside of the U.S. Some European countries are under pressure to not -- again, I'm not an expert on it. But from what I understand, I guess same as you would read, a lot of these countries are under certain amount of political pressure maybe not to purchase from Huawei.

不過，總的來說，我認為——無論產品是否在——我想我的意思是，無論產品是否在清單上，總的來說，華為的需求似乎確實在下降。他們談到自己情緒低落；我想我今天讀到，由於這種情況，未來兩年將有 300 億美元。再一次，我認為即使在美國之外也可能存在一些恥辱感。一些歐洲國家面臨著不這樣做的壓力——再次強調，我不是這方面的專家。但據我了解，我想和你讀到的一樣，這些國家中有很多都承受著一定的政治壓力，可能不會從華為購買產品。

And I'm showing no further questions in the queue. So now it is my pleasure to hand the conference back over to Seamus Grady for any closing comments or remarks.

我不會在隊列中顯示更多問題。因此，現在我很高興將會議交還給 Seamus Grady，讓他發表任何閉幕評論或評論。

Thank you. Thank you for joining our call today. We're excited to have delivered strong Q4 results, which caps the best fiscal year in our history. We remain optimistic that our leadership as a trusted manufacturing partner positions us for continued success in fiscal 2020 and beyond. I will look forward to speaking with you again soon. Thank you, and goodbye.

謝謝。感謝您今天加入我們的電話會議。我們很高興第四季度取得了強勁的業績，這是我們歷史上最好的財政年度。我們仍然樂觀地認為，我們作為值得信賴的製造合作夥伴的領導地位將使我們在 2020 財年及以後繼續取得成功。我期待著很快再次與您交談。謝謝，再見。

Ladies and gentlemen, thank you for your participation on today's conference. This does conclude our program, and we may all disconnect. Everybody, have a wonderful day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了我們的計劃，我們可能都會斷開連接。大家，祝你有美好的一天。