Fabrinet (FN) 2024 Q4 法說會逐字稿

Good afternoon, and welcome to Fabrinet's financial results conference call for the fourth quarter of fiscal year 2024. (Operator Instructions) As a reminder, today's call is being recorded.

下午好，歡迎參加 Fabrinet 2024 財年第四季財務業績電話會議。（操作員說明）謹此提醒，今天的通話正在錄音。

I would now like to turn the call over to your host, Garo Toomajanian, Vice President of Investor Relations. Please go ahead.

現在我想將電話轉給主持人投資者關係副總裁 Garo Toomajanian。請繼續。

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 of fiscal year 2024, which ended June 28, 2024. With me on the call today are Seamus Grady, Chief Executive Officer; and Csaba Sverha, 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.

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 2024 年 6 月 28 日的 2024 財年第四季度的財務和營運業績。今天與我一起參加電話會議的是執行長 Seamus Grady；和財務長 Csaba Sverha。本次電話會議正在進行網路直播，我們網站的投資者部分將提供重播，網址為investor.fabrinet.com。

During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the Investors section of our website for important information, including our earnings press release and investor presentation which include our GAAP to non-GAAP reconciliation as well as additional details of our revenue breakdown.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。請參閱我們網站的投資者部分，以了解重要信息，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 調節表以及我們收入細目的其他詳細資訊。

In addition, 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.

此外，今天的討論將包含有關公司未來財務表現的前瞻性陳述。前瞻性陳述受到風險和不確定性的影響，可能導致實際結果與管理階層目前的預期有重大差異。這些陳述僅反映我們截至本簡報發布之日的觀點，我們不承擔根據新資訊或未來事件對其進行修改的義務，除非法律要求。

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-Q filed on May 7, 2024. We will begin the call with remarks from Seamus and Csaba followed by time for questions.

有關可能影響我們結果的風險因素的說明，請參閱我們最近向 SEC 提交的文件，特別是我們於 2024 年 5 月 7 日提交的 10-Q 表格中標題為「風險因素」的部分。我們將首先由 Seamus 和 Csaba 發表講話，然後是提問時間。

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

我現在想將電話轉給 Fabrinet 的執行長 Seamus Grady。西莫？

Thank you, Garo. Good afternoon to everyone joining our call.

謝謝你，加羅。大家下午好。

Our very strong fourth-quarter results capped off an outstanding year for Fabrinet. Fourth quarter revenue of $753 million was above our guidance range and grew 15% from a year ago and 3% from Q3. We executed very well to produce non-GAAP EPS that also exceeded our guidance range at $2.41 per share. It's also notable that Q4 marks the fourth quarter in a row for both record revenue and EPS for the company.

我們非常強勁的第四季業績為 Fabrinet 出色的一年畫上了圓滿的句號。第四季營收為 7.53 億美元，高於我們的指導範圍，較去年同期成長 15%，較第三季成長 3%。我們執行得很好，產生了非 GAAP 每股收益，也超出了我們每股 2.41 美元的指導範圍。值得注意的是，第四季標誌著該公司連續第四個季度營收和每股盈餘均創歷史新高。

For the full year, revenue was $2.9 billion, an increase of 9% from fiscal year 2023. Our continued focus on cost management helped us to again grow non-GAAP earnings faster than revenue to a record $8.88 per share or a 16% year-over-year increase.

全年營收為 29 億美元，較 2023 財年成長 9%。我們對成本管理的持續關注幫助我們再次以高於收入的速度成長非 GAAP 收益，達到創紀錄的每股 8.88 美元，年增 16%。

2024 was quite a remarkable year for Fabrinet. Datacom revenue grew over 120%, while telecom revenue declined more than 20% for the year due to the protracted inventory digestion across the telecom industry. Our strong results throughout the year demonstrated the strength of our flexible and resilient business model.

2024 年對於 Fabrinet 來說是不平凡的一年。由於整個電信業長期的庫存消化，數據通訊收入成長超過 120%，而電信收入全年下降超過 20%。我們全年的強勁業績證明了我們靈活、有彈性的業務模式的實力。

Entering the fourth quarter, we anticipated continued revenue growth in datacom and declines in telecom, and that's what we experienced. We also anticipate a return to sequential growth in automotive revenue, which we also saw. Within optical communications, datacom revenue continues to drive growth, while the sequential decline in telecom was more modest than anticipated.

進入第四季度，我們預計數據通訊收入將持續成長，而電信收入將下降，這就是我們所經歷的。我們也預計汽車收入將恢復環比成長，我們也看到了這一點。在光通訊領域，數據通訊收入持續推動成長，而電信業務的環比下降幅度比預期溫和。

In datacom, 800-gig products for AI and related applications remained the biggest revenue contributor, offset in part by the completion of the wind down of a long-running 100-gig program, as we've discussed previously. We are very encouraged by the strong demand trends we are seeing for both current generation and next generation datacom technologies. We believe that our industry-leading expertise and trusted reputation position us particularly well to continue benefiting from long-term datacom growth.

在數據通訊領域，用於人工智慧和相關應用的 800 吉產品仍然是最大的收入貢獻者，正如我們之前討論的那樣，部分被長期運行的 100 吉項目的結束所抵消。我們對當前世代和下一代數據通訊技術的強勁需求趨勢感到非常鼓舞。我們相信，我們行業領先的專業知識和值得信賴的聲譽使我們能夠繼續從數據通訊的長期成長中受益。

In telecom, ongoing inventory digestion continues to dampen revenue from traditional telecom products. In the fourth quarter, this impact was partially offset by data center interconnect products as well as contributions from new telecom system program wins. In fact, we expect recent system wins are varying sizes to begin making more meaningful revenue contributions towards the second half of our fiscal 2025. These new wins make us optimistic about Fabrinet's long-term telecom revenue trends overall.

在電信領域，持續的庫存消化繼續抑制傳統電信產品的收入。在第四季度，這種影響被資料中心互連產品以及新電信系統專案勝利的貢獻所部分抵消。事實上，我們預計最近的系統勝利規模不同，將開始為 2025 財年下半年做出更有意義的收入貢獻。這些新的勝利讓我們對 Fabrinet 整體長期電信收入趨勢感到樂觀。

Turning to non-optical communications. We saw double-digit sequential revenue growth in the quarter. As anticipated, this increase was primarily due to growth in automotive revenue as short-term inventory absorption issues are now behind us. All in all, we had a very robust and successful quarter and year, and we remain positioned particularly well for continued momentum as we look ahead.

轉向非光通信。我們看到本季營收實現了兩位數的環比增長。正如預期的那樣，這一增長主要是由於汽車收入的增長，因為短期庫存吸收問題現在已成為過去。總而言之，我們度過了非常強勁和成功的季度和年度，並且在展望未來時，我們仍然處於特別有利的位置，可以持續保持成長勢頭。

In fact, in the first quarter of our fiscal year 2025, we anticipate sequential revenue growth from all of our major product categories. Beyond Q1, we continue to carefully evaluate our long-term capacity requirements. In that regard, we have made the decision to break ground on Building 10 at our Chonburi campus during the new fiscal year.

事實上，在 2025 財年第一季度，我們預期所有主要產品類別的營收將持續成長。第一季之後，我們將繼續仔細評估我們的長期產能需求。在這方面，我們決定在新財年期間在春武里園區破土動工 10 號大樓。

Our first building in Chonburi was Building 8 with all 500,000 square feet now being utilized. Building 9, which is about 1 million square feet opened about two years ago and is quickly filling up. Building 10 will be 2 million square feet in size. We expect construction to take approximately 1.5 years to complete once we break ground. Capital expenditures for construction of the 2 million square foot facility will be approximately $110 million. Beyond Building 10, we have ample space to further increase our manufacturing capacity. We'll keep you posted on our construction timeline as we move ahead.

我們在春武里府的第一棟建築是 8 號大樓，目前已全部使用 50 萬平方英尺。9號樓面積約100萬平方英尺，大約兩年前開業，很快就住滿了。10號樓面積為200萬平方英尺。破土動工後，我們預計施工大約需要 1.5 年才能完成。建設 200 萬平方英尺設施的資本支出約為 1.1 億美元。除了 10 號樓之外，我們還有足夠的空間來進一步提高我們的製造能力。隨著我們的進展，我們將隨時向您通報我們的施工時間表。

In summary, we delivered a record fourth quarter with revenue and EPS that were above our guidance ranges as well as a remarkable fiscal year. We are increasingly optimistic about our future, and we have numerous drivers that position us to extend our track record of success into fiscal 2025 and beyond.

總而言之，我們第四季度的營收和每股盈餘都超出了我們的指導範圍，創下了歷史新高，並且本財年也表現出色。我們對未來越來越樂觀，並且有眾多驅動因素使我們能夠將我們的成功記錄延續到 2025 財年及以後。

Now I'll turn the call over to Csaba for more financial details on our fourth quarter and fiscal 2024 and our guidance for the first quarter of fiscal 2025. Csaba?

現在，我將把電話轉給 Csaba，以了解有關我們第四季度和 2024 財年的更多財務細節以及我們對 2025 財年第一季的指導。恰巴？

Thank you, Seamus, and good afternoon, everyone. We had a terrific fourth quarter to end a very strong year.

謝謝你，Seamus，大家下午好。我們在第四季表現出色，為這一非常強勁的一年畫上了句號。

Record fourth quarter revenue of $753 million was above our guidance range and represented an increase of 15% from a year ago and 3% from Q3. The strong revenue helped produce record non-GAAP earnings per share of $2.41, which was also above our guidance. For the full fiscal year, revenue was a record $2.9 billion, an increase of 9% from fiscal 2023.

第四季營收達到創紀錄的 7.53 億美元，高於我們的指引範圍，較去年同期成長 15%，較第三季成長 3%。強勁的收入幫助創造了創紀錄的非 GAAP 每股收益 2.41 美元，也高於我們的指引。整個財年的營收達到創紀錄的 29 億美元，比 2023 財年成長 9%。

As in recent years, non-GAAP earnings grew faster than revenue, reaching a new record of $8.88 per share, up 16% from the prior year. Details of our revenue breakdown are included in the investor presentation on our website. And I will now focus my comments on some of the more notable metrics.

與近年來一樣，非 GAAP 獲利成長速度快於營收成長，達到每股 8.88 美元的新紀錄，較前一年成長 16%。我們的收入細目詳情包含在我們網站上的投資者介紹中。現在我將集中評論一些更值得注意的指標。

In the fourth quarter, optical communications revenue was $596 million or 79% of total revenue, an increase of 19% from a year ago and 1% from Q3. Within optical communications, datacom revenue was $350 million or 53% of optical communications revenue, an increase of 63% from a year ago and 3% from the prior quarter.

第四季光通訊營收為5.96億美元，佔總營收的79%，年增19%，季增1%。在光通訊領域，數據通訊收入為3.5億美元，佔光通訊收入的53%，較去年同期成長63%，較上季成長3%。

Telecom revenue was $282 million or 47% of optical communications revenue. Telecom revenue declined approximately 1% from Q3, which was a smaller decline than expected due to continued growth from data center interconnect products.

電信收入為 2.82 億美元，佔光通訊收入的 47%。電信收入較第三季下降約 1%，由於資料中心互連產品的持續成長，降幅小於預期。

With the optical communication industry transitioning to higher data rates, we continue to see strong growth from 800 gig and faster products that are now clearly the key drivers of our growth. Therefore, we are now breaking out revenue by speed into two categories: 800 gig and faster and below 800 gig.

隨著光通訊產業向更高數據速率過渡，我們繼續看到 800 GB 和更快產品的強勁成長，這些產品現在顯然是我們成長的關鍵驅動力。因此，我們現在將收入按速度分為兩類：800 gig 及更快以及低於 800 gig。

In the fourth quarter, revenue from products rated at 800 gig and faster was $259 million, up 54% from a year ago. Revenue from products below 800 gig was $223 million, up 4% from a year ago. Revenue from optical communications products that are non-speed rated, including ROADMs, amplifiers, fiber arrays, and other devices, was $114 million. down 5% from a year ago.

第四季度，評級為 800 gig 及以上的產品收入為 2.59 億美元，比去年同期成長 54%。800 G 以下產品的營收為 2.23 億美元，比去年同期成長 4%。非速率光通訊產品（包括 ROADM、放大器、光纖陣列和其他設備）的收入為 1.14 億美元。較一年前下降 5%。

The historical two-year trend of blackout is provided in the most recent investor deck on our website. From that breakout, you will observe that in fiscal 2024 and products rated at 800 gig and above started to dominate and were the biggest contributor to growth. Although products below 800 gig continue to grow, thanks to 400 ZR programs, which reached 10% of optical communications revenue in Q4.

我們網站上最新的投資者資料中提供了歷史上兩年的停電趨勢。從這項突破中，您會發現，在 2024 財年，額定功率為 800 兆及以上的產品開始佔據主導地位，並成為成長的最大貢獻者。儘管800G以下產品持續成長，但得益於400個ZR項目，該項目在第四季度達到了光通訊收入的10%。

Revenue from non-optical communications saw healthy growth in the fourth quarter to $157 million. up 2% from a year ago and 12% from Q3. This increase was primarily the result of increasing automotive revenue as we have moved as a short-term inventory correction period. Automotive revenue was $86 million in the fourth quarter, up 17% sequentially.

第四季非光通訊收入健康成長，達到 1.57 億美元。較去年同期成長 2%，較第三季成長 12%。這一增長主要是由於我們進入了短期庫存調整期，汽車收入增加了。第四季汽車收入為 8,600 萬美元，比上一季成長 17%。

As I discussed the details of our P&L, expense and profitability metrics will be on a non-GAAP basis unless otherwise noted. Gross margin in the fourth quarter was 12.5%, a 10-basis point decline from Q3 and was within our guidance range. Operating expenses were $14 million, slightly less than 2% of revenue. Operating income was $80 million, representing an operating margin of 10.7%, consistent with the third quarter.

正如我討論的損益表的詳細信息，除非另有說明，費用和盈利指標將基於非公認會計準則（non-GAAP）基礎。第四季毛利率為 12.5%，較第三季下降 10 個基點，在我們的指導範圍內。營運費用為 1,400 萬美元，略低於收入的 2%。營業收入為 8,000 萬美元，營業利潤率為 10.7%，與第三季持平。

The combination of our strong cash balance and elevated interest rate environment provided record interest income of $11 million. Effective GAAP tax rate was 4.6% in the fourth quarter. We anticipate that our tax rate will remain in the mid-single digit in fiscal year 2025. Non-GAAP net income was a record $88 million or $2.41 per diluted share. For the full year, revenue was $2.9 billion, up 9% from fiscal 2023.

我們強勁的現金餘額和高利率環境相結合，創造了創紀錄的 1,100 萬美元利息收入。第四季有效 GAAP 稅率為 4.6%。我們預計 2025 財年的稅率將維持在中個位數。非 GAAP 淨利潤達到創紀錄的 8,800 萬美元，即稀釋後每股收益 2.41 美元。全年營收為 29 億美元，比 2023 財年成長 9%。

In fiscal 2024, we had two customers that contributed 10% or more to revenue. NVIDIA at 35% and Cisco at [13%]. Our top 10 customers together made up 86% of revenue, up from 84% in fiscal 2023. For the fiscal year, gross margins were 12.6%, down 40 basis points from fiscal 2023, primarily due to the absence of FX tailwinds that we benefited from last year.

2024 財年，我們有兩位客戶貢獻了 10% 或更多的收入。NVIDIA 為 35%，思科為[13%]。我們的十大客戶合計佔營收的 86%，高於 2023 財年的 84%。本財年，毛利率為 12.6%，比 2023 財年下降 40 個基點，主要是因為我們去年沒有受益於外匯利好。

Operating margin for the fiscal year was 10.6%, a decrease of 20 basis points from fiscal 2023. You will note this is a smaller decline than we saw in our gross margin, reflecting operating leverage inherent in our model. Non-GAAP net income was a record $8.88 per share, an increase of 16% from a year ago with EPS growth again outpacing revenue growth.

本財年營業利益率為 10.6%，較 2023 財年下降 20 個基點。您會注意到，這比我們的毛利率下降幅度要小，反映了我們模型中固有的營運槓桿。非 GAAP 淨利潤達到創紀錄的每股 8.88 美元，較上年同期成長 16%，每股收益成長再次超過營收成長。

We maintained a very strong balance sheet throughout fiscal year 2024. We closed the year with cash and short-term investments of $859 million, up $65 million from the end of the third quarter. The primary driver of this increase was strong operating cash flow of $83 million, with CapEx of $13 million, free cash flow in the quarter was $70 million.

我們在 2024 財年維持了非常強勁的資產負債表。我們年底的現金和短期投資為 8.59 億美元，比第三季末增加了 6,500 萬美元。這一成長的主要驅動力是強勁的營運現金流（8,300 萬美元），資本支出為 1,300 萬美元，本季自由現金流為 7,000 萬美元。

For the full year, we generated record operating cash flow of [$413 million], a remarkable increase of 94% from fiscal 2023. Free cash flow in fiscal 2024 was also a record at $368 million, an increase of 142% from a year ago. In the fourth quarter, we repurchased approximately 21,000 shares at an average price of $170 per share for a total cash outlay of $3.5 million. For the full year, we repurchased approximately 212,000 shares at an average price of $186 per share for a total cash outlay of $39 million.

全年，我們創造了創紀錄的營運現金流 [4.13 億美元]，比 2023 財年顯著成長 94%。2024財年的自由現金流也創下歷史新高，達到3.68億美元，年增142%。第四季度，我們以每股 170 美元的平均價格回購了約 21,000 股股票，現金支出總額為 350 萬美元。全年，我們以每股 186 美元的平均價格回購了約 212,000 股股票，現金支出總額為 3,900 萬美元。

We remain committed to investing in our growth while also returning capital to shareholders with our 10b5-1 and open market share repurchase programs. Since the end of the quarter, our Board has authorized an additional $139 million for repurchases so that we now have $200 million available for share buyback. This is double the size of our repurchase authorization at the beginning of fiscal 2024.

我們仍然致力於投資我們的成長，同時透過我們的 10b5-1 和公開市場股票回購計劃向股東返還資本。自本季末以來，我們的董事會已額外授權 1.39 億美元用於回購，因此我們現在有 2 億美元可用於股票回購。這是我們 2024 財年初回購授權規模的兩倍。

Now I will turn to our guidance for the first quarter of fiscal year 2025. After a year of breaking quarterly records for revenue and EPS, we are optimistic that the first quarter will represent another strong quarter for Fabrinet. In fact, we anticipate that revenue will be up sequentially in all of our major product areas.

現在我將談談我們對 2025 財年第一季的指導。經過一年的營收和每股盈餘打破季度記錄後，我們樂觀地認為第一季將代表 Fabrinet 的另一個強勁季度。事實上，我們預計所有主要產品領域的收入都將持續成長。

We expect datacom growth to be driven mainly by advanced high data rate products. We expect telecom revenue to increase from the combination of growth in data center interconnect products and recent new programming. And we believe that automotive and laser revenue will also grow sequentially.

我們預計數據通訊的成長將主要由先進的高數據速率產品推動。我們預計電信收入將因資料中心互連產品的成長和最近的新節目的成長而增加。我們相信汽車和雷射收入也將環比增長。

Overall, we expect first quarter revenue to be in the range of $760 million to $780 million. We also expect strong performance from profitability perspective. Keep in mind that in the first quarter, we will see the seasonal impact of annual merit increases, which puts temporary downward pressure on margins.

總體而言，我們預計第一季營收將在 7.6 億美元至 7.8 億美元之間。從獲利能力的角度來看，我們也預期會有強勁的表現。請記住，在第一季度，我們將看到年度績效成長的季節性影響，這會對利潤率造成暫時的下行壓力。

As in the past, we expect operational efficiencies to offset these cost increases as we progress through the year. Based on recent strength in Thai Baht, we expect the foreign exchange revaluation loss in the first quarter. With that in mind, we are anticipating EPS to be $2.33 to $2.40 per share.

與過去一樣，我們預計隨著今年的進展，營運效率將抵消這些成本增加。基於泰銖近期的強勢，我們預期第一季將出現外匯重估損失。考慮到這一點，我們預計每股收益為 2.33 美元至 2.40 美元。

In summary, we had another record quarter with results that exceeded our guidance for both revenue and EPS. We expect our momentum to continue in fiscal 2025, beginning with a strong first quarter as we extend our track record of solid execution.

總而言之，我們又一個創紀錄的季度業績超出了我們對營收和每股盈餘的指導。我們預計我們的勢頭將在 2025 財年繼續下去，從第一季的強勁表現開始，我們將繼續保持穩健執行的記錄。

Operator, we are now ready to open the call for questions.

接線員，我們現在準備開始提問。

(Operator Instructions) Samik Chatterjee, JPMorgan.

（操作員指示）Samik Chatterjee，摩根大通。

Thanks for the question. This is Joe Cardoso on for Samik. So maybe first one here just on the datacom business. Curious if you could talk about the timing around 1.6T and whether you think that could start to -- or whether that's beginning to mid-July as early as your September quarter?

謝謝你的提問。我是喬·卡多佐 (Joe Cardoso) 替補薩米克 (Samik)。所以也許第一個是關於數據通訊業務的。好奇您能否談談 1.6T 左右的時間安排，以及您是否認為這可能會開始，或者是否會早在您的 9 月份季度就開始到 7 月中旬？

And then second part of this question is just like how are you thinking about 400 gig and 800 gig demand going forward. Both of these look like strong growth drivers in '24, just doing kind of the back of the envelope math here on the new disclosures. And I think in the past, you highlighted an expectation that 800 gig demand continues, as you don't expect 1.6T to cannibalize it. Is that still the same case expectations going into 2025? And does that apply to 400 gig as well? And then I have a quick follow-up.

這個問題的第二部分就像您如何看待未來 400 演出和 800 演出的需求。這兩個看起來都是 24 年強勁的成長動力，只是對新揭露的資訊進行了粗略的計算。我認為在過去，您強調了 800 演出需求持續增長的預期，因為您預計 1.6T 不會蠶食它。到 2025 年，情況預期仍然如此嗎？這也適用於 400 演出嗎？然後我會進行快速跟進。

Thanks, Joe. So yeah, 1.6, we don't talk -- we can't talk about the specific timeline for our customers' product before they do. But certainly, we're working hard with our customer on 1.60. But we think that 800 gig will be around for a while. It's used extensively in a lot of the products and the networks we make for our customers. And we think we think 800 gig will be around for a long time.

謝謝，喬。所以，是的，1.6，我們不談論——我們不能在客戶談論之前談論他們產品的具體時間表。但當然，我們正在與客戶一起努力開發 1.60。但我們認為 800 場演出還會持續一段時間。它廣泛用於我們為客戶製造的許多產品和網路。我們認為 800 場演出將持續很長一段時間。

Our aim, as always, is to be working with the customers on the next-generation products, while we're building the current generation products. 1.6T transceivers, they're quite complex, and they don't ramp up overnight. But again, the timing of the announcement of a new product like that is really up to our customers. So we wouldn't really comment on that.

我們的目標一如既往，是在建立當前世代產品的同時，與客戶合作開發下一代產品。1.6T 收發器非常複雜，而且不可能一蹴可幾。但同樣，發布此類新產品的時間實際上取決於我們的客戶。所以我們不會對此發表評論。

But we're certainly making sure we're ready from a capacity perspective. 800 gig, like I say, 800 gig, the demand is very strong, 400 gig still remains. But like I say, the timing of 1.6T, we leave that to our costs to talk about.

但我們肯定會確保從容量角度做好準備。 800G，就像我說的，800G，需求非常強勁，400G仍然存在。但就像我說的，1.6T的時機，我們把這個問題留給我們的成本來討論。

Thanks, Seamus. And then maybe just in terms of my second question and maybe bigger picture, obviously, great to hear the news around building an expansion. As we think about the portfolio and what's driving the conviction to break ground there, is this all related to further confidence in terms of -- around the datacom business? Or are there other areas of your portfolio that's driving conviction here and supporting the additional facility build-out? Just curious high-level thoughts how you're thinking about and what's driving the conviction there. appreciate the questions.

謝謝，西莫。然後也許只是就我的第二個問題而言，也許是更大的前景，顯然，很高興聽到有關建立擴展的消息。當我們思考投資組合以及推動破土動工的信念時，這一切是否都與圍繞數據溝通業務的進一步信心有關？或者您的投資組合中是否有其他領域可以推動這裡的信念並支持額外的設施建設？只是好奇的高層想法，你是如何思考的，以及是什麼推動了你的信念。感謝您提出的問題。

No problem. It's really our overall conviction about the overall business, it's not on any one particular, if you like, segment. Building 9 and actually building it before it settlles faster than we had anticipated. And Building 10 a good use of our cash. We have the cash available -- we get better economies of scale by building a 2 million square foot facility rather than a 1 million square foot. And it's just a better overall use of the land available to us to build the 2 million square foot facility.

沒問題。這確實是我們對整個業務的整體信念，而不是任何一個特定的（如果你願意的話）細分市場。建造 9 號並在其穩定速度比我們預期更快之前實際建造它。10 號樓很好地利用了我們的現金。我們有足夠的現金——透過建造 200 萬平方英尺的設施而不是 100 萬平方英尺的設施，我們可以獲得更好的規模經濟。這只是更好地全面利用我們可用的土地來建造 200 萬平方英尺的設施。

And really, we have conviction in the pipeline and in the business, the upside opportunity is significant. If you do the math on the revenue per square foot, it would suggest that the revenue capacity in Building 10 should be about $2.4 billion, plus or minus $2.4 billion. So the upside opportunity is significant, and the downside risk is very small.

事實上，我們對管道和業務充滿信心，上升機會是巨大的。如果計算每平方英尺的收入，那麼 10 號樓的收入能力應該約為 24 億美元，正負 24 億美元。因此，上行機會很大，下行風險很小。

Even if we were to build Building 10 and didn't put any business in there for a period of time, the gross margin headwind would be about 15 basis points. So it's very small. So it's a combination of all those factors, the conviction of the business. We believe it's a good use of our cash, and it's also good upside potential with downside risk.

即使我們建造10號大樓並且在一段時間內沒有在那裡開展任何業務，毛利率的逆風也會約為15個基點。所以它很小。因此，這是所有這些因素的結合，也是企業的信念。我們相信，這是對我們現金的良好利用，同時也具有良好的上行潛力和下行風險。

Karl Ackerman, BNP Paribas.

卡爾‧阿克曼，法國巴黎銀行。

I've got two questions. First, your 800-gig transceiver revenue to date has been primarily driven by your largest customer. And some investors have been concerned that a pushout of the latest GPUs would impact your near outlook. That does not appear to be the case. So does your September quarter outlook imply that you are seeing a broadening of your datacom customer base for 800 gig as several hyperscalers are beginning to deploy broadly 800 networking switches.

我有兩個問題。首先，迄今為止您的 800G 收發器收入主要由您最大的客戶推動。一些投資者一直擔心最新 GPU 的推出會影響您的近期前景。事實似乎並非如此。因此，您對 9 月季度的展望是否意味著，隨著多家超大規模企業開始廣泛部署 800 個網路交換機，您將看到 800 個千兆位元的資料通訊客戶群正在擴大。

So yeah, I mean, we don't really comment on our customers' product launches. We know that our big customers, you say for 800 gig has been NVIDIA, and we -- they continue to see strong demand for their products. And our understanding is that they will extend and expand production based on current GPUs to meet the demand that's there, and we're happy to continue to support them.

所以，是的，我的意思是，我們不會真正評論客戶的產品發布。我們知道我們的大客戶，你說的 800 GB 一直是 NVIDIA，而且我們 - 他們繼續看到對其產品的強勁需求。我們的理解是，他們將基於當前的 GPU 來擴展和擴大生產，以滿足現有的需求，我們很高興繼續為他們提供支援。

We're working, Karl, on a number of opportunities. We talked about these before. There's really three categories of, if you like, AI related to growth factors, there's outside of NVIDIA. Obviously, we're very happy with the growth of NVIDIA, but we're pursuing others. There's other GPU companies. There is other merchant transceiver opportunities and then there's hyperscalers who are looking to maybe go direct and we're pursuing all three.

卡爾，我們正在努力尋找許多機會。我們之前談過這些。如果你願意的話，與生長因子相關的人工智慧實際上可以分為三類，除了 NVIDIA 之外。顯然，我們對 NVIDIA 的發展感到非常高興，但我們也在追求其他公司。還有其他 GPU 公司。還有其他商業收發器機會，然後還有希望直接採用的超大規模商，我們正在追求這三個機會。

So our outlook is really a function of continued strength in the datacom business. And the telecom softness that we've seen for the last while, we are seeing indications that demand is beginning to recover. So I suppose in simple terms, the datacom growth looks to be sustainable and the telecom weakness is temporary, we think.

因此，我們的前景實際上取決於數據通訊業務的持續強勁。我們看到過去一段時間電信業的疲軟，我們看到需求開始復甦的跡象。因此，我認為簡單地說，我們認為數據通訊的成長看起來是可持續的，而電信的疲軟是暫時的。

We've also had some success with winning some new complete network systems business as well as we'll be introducing over the next while. So we want to make sure we have ample capacity for that. We've been able to pick up some additional complete network system business.

我們也取得了一些成功，贏得了一些新的完整網路系統業務，我們將在接下來的一段時間內推出。因此，我們希望確保我們有足夠的能力來做到這一點。我們已經能夠獲得一些額外的完整網路系統業務。

Yes. Thanks for that, Seamus. To that point, could you discuss the breadth of customer adoption and growth of coherent ZR optics using telecom and DCI. And then at the same time, if I may, these -- you spoke in your prepared comments about new programs within telecom beginning to float in the model in the second half of fiscal '25. I'm curious whether the reason to expand Building 10 of what appears to be twice as large as your previous plans is driven by the outlook within the telecom programs or if it's driven predominantly by the datacom opportunity that you see? Thank you.

是的。謝謝你，西莫。就此而言，您能否討論一下使用電信和 DCI 的相干 ZR 光學元件的客戶採用和成長的廣度。同時，如果可以的話，您在準備好的評論中談到了電信領域的新計劃，該計劃將於 25 財年下半年開始在模型中浮現。我很好奇將 10 號樓擴建為您之前計劃的兩倍，是由電信專案的前景驅動還是主要由您看到的數據通訊機會驅動？謝謝。

Yes, Karl, it's actually both. It's the continued strength in datacom, and we believe our ability to pick up additional business there, but also what we see as some recovery in telecom, but also some new wins. We have been picking up some new business. We've had some success with a number of system wins of varying sizes over the last one. And if you go back, a few years ago, we had the Infinera win, and we had some considerable success with Cisco.

是的，卡爾，實際上兩者都是。這是數據通訊領域的持續強勢，我們相信我們有能力在那裡獲得更多業務，我們認為電信領域有所復甦，而且也有一些新的勝利。我們一直在開展一些新業務。與上一次相比，我們取得了一些不同規模的系統勝利，並取得了一些成功。如果你回顧幾年前，我們贏得了 Infinera，並且在思科方面取得了相當大的成功。

And more recently, we've been awarded -- one of these is an award from Ciena actually, who's been a customer of ours for some time, but they've been a customer more on the component side. They haven't been a 10% customer. So they haven't been in the 10% chart, if you like. but they're a very important customer for us and an excellent customer.

最近，我們獲得了獎項——其中之一實際上是來自 Ciena 的獎項，他已經是我們的客戶一段時間了，但他們更多的是在組件方面的客戶。他們還不是 10% 的客戶。所以如果你願意的話，他們還沒有出現在 10% 圖表中。但他們對我們來說是一個非常重要的客戶，也是一個優秀的客戶。

And we're very happy that we've been awarded the manufacturing of the majority share of their next-generation network modem business. along with all of the associates of vertically integrated optical components. So we've been making the majority of the modems and all of the optics for those models, and we expect this program really in the -- in our fiscal Q4, which means this win will be all more important for fiscal '26 revenue and just for '25 revenue.

我們很高興能夠獲得他們下一代網路數據機業務大部分份額的製造權。以及垂直整合光學元件的所有合作夥伴。因此，我們一直在為這些型號製造大部分調製解調器和所有光學器件，我們預計該計劃將在第四財季真正實施，這意味著這一勝利對於 26 財年的收入和收入將更加重要。 '25的收入。

But over the next kind of six, nine months, we'll begin to ramp that. And we're very happy with the expansion of this relationship with Ciena. So it's a combination of returning to strength in telecom plus some additional business we've been picking up in telecom and of course, sustainable datacom -- demand and datacom growth as well. (multiple speakers)

但在接下來的六、九個月內，我們將開始加強。我們對與 Ciena 的關係的擴展感到非常高興。因此，這是電信領域恢復實力加上我們在電信領域獲得的一些額外業務的結合，當然還有可持續的數據通訊——需求和數據通訊的成長。（多個發言者）

Sorry, you asked also about ZR. So our telecom business, overall, year on year, it's down 23% year on year. But within that, we've had some very nice growth in DCI, which is not just ZR, but it's -- a lot of that growth has been ZR. And we've had some success in 400ZR and also 800 and ZR Plus. And right now, we have six customers -- six ZR customers are varying sizes. So Z optics with -- in particular, for DCI applications has been a real source of strength for us. And we've been -- we've been very happy with the adoption of VR in the DCI space over the last month.

抱歉，您也詢問了 ZR。所以我們的電信業務，整體來說，年減了23%。但其中，我們在 DCI 方面取得了一些非常好的成長，這不僅僅是 ZR，而且其中很大一部分成長都是 ZR 帶來的。我們在 400ZR、800 和 ZR Plus 方面取得了一些成功。現在，我們有六個客戶——六個 ZR 客戶的規模各不相同。因此，Z 光學元件（尤其是 DCI 應用）對我們而言是真正的力量來源。上個月，我們對 DCI 領域採用 VR 感到非常高興。

Alex Henderson, Needham.

亞歷克斯·亨德森，李約瑟。

Thanks so much. Wow, you got Ciena in there, the systems business, that's fabulous. Congratulations. That's good news. I was hoping you might talk a little bit about whether you're going to break that out as a category now that it's become a multiple vendor group as opposed to one or two customers? And then second, within the systems business, a lot of systems inventory out there, but it seems to be clearing faster on the system side than the component side. So do you expect the systems business to pick up faster than the overall telecom component business?

非常感謝。哇，系統業務領域的 Ciena 也加入其中，太棒了。恭喜。這是個好消息。我希望您能談談您是否打算將其作為一個類別進行劃分，因為它已經成為一個多供應商群體而不是一兩個客戶？其次，在系統業務中，存在大量系統庫存，但係統側的清理速度似乎比組件側更快。那麼您是否預期系統業務的成長速度將快於整體電信組件業務的成長速度？

Well, certainly, I think our systems business will -- because we've had some success there and we've obviously had some success on the component business as well, but that is still hampered by inventory digestion. And again, we can't really easily distinguish between inventory adjustments and market demand. So it's not always clear to us.

嗯，當然，我認為我們的系統業務會——因為我們在這方面取得了一些成功，顯然我們在組件業務上也取得了一些成功，但這仍然受到庫存消化的阻礙。再說一遍，我們無法真正輕易地區分庫存調整和市場需求。所以我們並不總是清楚。

But based on what we are seeing from our customers, it does feel as though inventory digestion, and again on the component side for traditional telecom products is starting to stabilize. It doesn't really mean we're off to the races yet, but there could still be some remaining digested with the big year-over-year and sequential declines, we think, are largely behind us at this point.

但根據我們從客戶那裡看到的情況，確實感覺庫存正在消化，而且傳統電信產品的零件方面也開始穩定下來。這並不意味著我們已經開始比賽了，但我們認為，隨著同比和連續下降的大幅下降，目前可能仍然有一些問題需要消化，目前已經基本過去了。

On the system side, yeah, so for us, we think the system business will probably grow faster in the component business. We haven't broken it out that way, yes, we may, as you say, at some point in the future. Up to now, we've had one or two customers in that space. But as we add to that customer portfolio, we may at some point in the future, but not we would probably wait until the end of the fiscal year to do that.

在系統方面，是的，所以對我們來說，我們認為系統業務可能會在元件業務中成長得更快。我們還沒有那樣解決這個問題，是的，我們可能會像你說的那樣，在未來的某個時候。到目前為止，我們在該領域已經有一兩個客戶。但當我們增加客戶組合時，我們可能會在未來的某個時候，但我們可能會等到本財年結束時才這樣做。

In your remarks, you made a comment that the AI has multiple alternative growth factors outside of NVIDIA. Are any of those three categories that you identified anywhere near the possibility of an announcement? Do you think that that's something that could happen during this upcoming fiscal year? Or do you think that's really '26 and beyond type of business?

在您的演講中，您評論說，AI 在 NVIDIA 之外還有多種替代增長因素。您確定的這三個類別中的任何一個類別是否接近發佈公告的可能性？您認為這會在即將到來的財政年度發生嗎？或者您認為這真的是 26 歲及以上的業務類型嗎？

Well, as you know, Alex, we generally tend to not announce anything until there's something to announce as evidenced by the Ciena news. Our approach is to work very hard with our customers to try and win these opportunities. But until such time as we've actually won it, we generally don't talk about it.

好吧，正如你所知，亞歷克斯，我們通常不會宣布任何事情，直到有像 Ciena 新聞所證明的事情要宣布。我們的方法是與客戶共同努力，努力贏得這些機會。但在我們真正贏得勝利之前，我們通常不會談論它。

So -- but there's three -- as you said, the three growth vectors we're pursuing with vigor and with energy and working very, very hard on those. We're quite optimistic that there's a lot of business to be won in all three of those areas. And again, the three areas being other GPU companies other merchant transceiver opportunities; and thirdly, hyperscale companies who want to go direct maybe with their own optical interval. So we're working hard on all three of those, but nothing to announce at this point, but we're optimistic. But it takes time -- it takes a long time to learn these opportunities.

所以——但有三個——正如你所說，我們正在充滿活力和精力地追求三個成長向量，並為此付出了非常非常大的努力。我們非常樂觀地認為，這三個領域都可以贏得大量業務。再說一次，這三個領域是其他 GPU 公司和其他商業收發器的機會；第三，想要直接使用自己的光間隔的超大規模公司。因此，我們正在努力解決這三個問題，但目前還沒有什麼可宣布的，但我們很樂觀。但這需要時間——需要很長時間才能了解這些機會。

One last question, then I'll cede the floor. So I think you've talked about pricing pressure being larger than the 10% to 15% normal price pressure that has been evident in this category for -- I don't know but it's the decade or plus with the exception of the COVID window. And you clearly selling predominantly into a single customer who's now got qualification from multiple customers or multiple alternative suppliers.

最後一個問題，那麼我就放棄發言權。所以我認為你已經談到價格壓力比10% 到15% 的正常價格壓力要大，這一點在這一類別中已經很明顯了——我不知道，但這是十年或更長時間，除了新冠疫情窗口期之外。顯然，您主要向單一客戶銷售產品，而該客戶現在已從多個客戶或多個替代供應商那裡獲得了資格。

The combination of those two with some slowing of the overall growth rate expected in this category in '25 and '26. Does it suggest to you that this category could decelerate to pretty modest growth? Or as you have share loss against your major customer and the pricing pressures there?

兩者相結合，預計 25 年和 26 年該類別的整體成長率將有所放緩。這是否表明該類別的增長可能會減速至相當溫和的水平？或者因為您對主要客戶的份額損失以及那裡的定價壓力？

Or do you have visibility that the new capacity coming on stream from that customer coming in quarter after quarter after quarter is going to continue to drive solid 5% to 15% kind of growth, which is what you've been producing quarter to quarter over the last year. How do we think about this dynamic perspective? Thanks.

或者您是否意識到該客戶逐季投產的新產能將繼續推動 5% 至 15% 的穩定成長，而這正是您每季生產的產能去年。我們如何看待這種動態視角？謝謝。

Yeah. So yes, we've been growing about 15% compound annual growth rate over the last three or four years. Our topline has grown about 15% each year. Our earnings has grown about 24% in the same period each year. And from a customer's perspective, yeah, cost is a factor but it's not the only consideration.

是的。所以，是的，在過去三、四年裡，我們的複合年增長率一直在成長約 15%。我們的收入每年增長約 15%。我們的收入每年同期成長約 24%。從客戶的角度來看，是的，成本是一個因素，但不是唯一的考慮因素。

First of all, in terms of cost, we're very I would say, confident in our ability to meet any cost targets that the customer -- any of our customers need us to meet. We're very cost competitive. We have a low-cost footprint. We have a very compact footprint, and we don't have any redundant capacity in any geographies around the world. So we don't have a capacity overhang that we have to deal with. So we're very cost conscious, we're very cost competitive, and we're very compact.

首先，在成本方面，我想說，我們對滿足客戶（我們的任何客戶）需要我們滿足的任何成本目標的能力充滿信心。我們的成本非常有競爭力。我們的足跡低成本。我們的佔地面積非常緊湊，並且在全球任何地區都沒有任何冗餘產能。因此，我們沒有必須處理的產能過剩問題。所以我們非常注重成本，我們非常具有成本競爭力，而且我們的結構非常緊湊。

But our customers really care about several factors. Cost being one, but it's not the only one. Technology and really the ability of their supplier to be a technology leader to make sure they can get to market first with their new products is critical. And then quality and delivery are absolutely critical and the ability to ramp quickly when an opportunity comes along. So having capacity available is creative as well and of course, costs.

但我們的客戶確實關心幾個因素。成本是其中之一，但不是唯一的。技術以及供應商成為技術領導者的能力至關重要，以確保他們的新產品能夠首先進入市場。然後，品質和交付絕對至關重要，並且當機會出現時快速提升的能力。因此，擁有可用的容量也是創造性的，當然還有成本。

So it's all of those factors. It's not only one factor. It's all of those factors that we believe our customers are most preoccupied with and so are we. So we're confident in our ability to continue to grow the business. We don't give long-term guidance. As you know, Alex, we guide one quarter at a time. But I think our optimism about the business is you can see the steps we're taking to continue to expand our capacity and make sure we're ready for the future. It's a good indication of how we feel.

所以這就是所有這些因素。這不僅僅是一個因素。我們相信我們的客戶最關心的是所有這些因素，我們也是如此。因此，我們對繼續發展業務的能力充滿信心。我們不提供長期指導。如你所知，亞歷克斯，我們一次指導一個季度。但我認為我們對業務的樂觀是你可以看到我們正在採取的步驟，以繼續擴大我們的產能，並確保我們為未來做好準備。這很好地表明了我們的感受。

Tim Savageaux. Northland Capital Markets.

提姆·薩瓦喬.北國資本市場。

My congratulations as well. And I'll just try and put that in a little more context in terms of the win here. You'd mentioned Infinera and Cisco, historically. I think we started out with relatively muted expectations there. But clearly, they are very sizable customers for you, I think the increment there is couple $300 million. I don't know whether you said it there. I think you mentioned Ciena was not a 10% customer currently. I assume they will be in fiscal '26. Is that fair to say?

我也表示祝賀。我將嘗試將其放在更多有關勝利的背景中。您曾經提到 Infinera 和 Cisco。我認為我們一開始的期望相對較低。但顯然，他們對你來說是非常大的客戶，我認為增量為 3 億美元。不知道你那裡有沒有說過。我想你提到 Ciena 目前還不是 10% 的客戶。我認為他們將在 26 財年上市。這麼說公平嗎？

I guess if you dial in approximately 12 months from now, we'll find out. But it's too early to say, Tim. And I think it's early days. Obviously, it's not early days in our relationship with Ciena. They've been a customer for a very long time and an excellent customer. But this latest win we're just getting geared up to begin to ramp it. So it's early days, but we're very happy with the win, very happy with the relationship.

我想如果您從現在起大約 12 個月後撥打電話，我們就會知道。但現在說還為時過早，提姆。我認為現在還為時過早。顯然，我們與 Ciena 的關係還不算初期。他們已經是很長時間的客戶了，而且是一位優秀的客戶。但我們只是做好準備，開始加速這場最新的勝利。所以現在還為時過早，但我們對勝利感到非常高興，對我們的關係非常滿意。

Okay. And you mentioned modems. I assume that's the kind of the mainline kind of coherent line cards and the associated optics that go with that. And I don't know if you can say this, but would that include pluggables as well, ZR pluggables or maybe you already do that?

好的。你提到了調製解調器。我認為這是一種主線類型的相干線卡和與之相關的光學元件。我不知道你是否可以這樣說，但這是否也包括可插拔、ZR 可插拔，或者也許你已經這樣做了？

Yeah. I prefer probably not to go to that level of detail. I mean, we do a lot of work with Ciena. Like I say, they have not been a 10% customer. So -- and again, it's not really our place to disclose the specific components we make for our customers. But it's a pretty broad-based relationship and a very successful.

是的。我可能不想講到那麼詳細。我的意思是，我們與 Ciena 做了很多工作。就像我說的，他們不是 10% 的客戶。因此，再次強調，我們不適合透露我們為客戶製造的特定組件。但這是一種基礎相當廣泛且非常成功的關係。

(Operator Instructions) Mike Genovese, Rosenblatt Securities.

（操作員指示）Mike Genovese，羅森布拉特證券公司。

So Seamus, the Ciena win sounds very positive, and the ZR commentary was positive. I'm just wondering on the telecom side of the world, are there any other green shoots to point out? Or are those the two main things? Or is there a third and a fourth?

所以 Seamus，Ciena 的勝利聽起來非常積極，ZR 的評論也是積極的。我只是想知道在世界電信方面，還有其他的萌芽可以指出嗎？或者說這是兩個主要的事情？還是還有第三個和第四個？

I think the other couple of comments are on the overall, let's say, our traditional telecom business. We do think it's stabilizing. We're starting to see demand coming back. We're starting to see it stabilize. So early days, but we think our traditional telecom business is starting to stabilize. And then the other point would be on DCI. So DCI continues to be a good growth driver, especially 400ZR but also 800ZR been a good solid beacon of likes of growth for us over the last while. They will be the four main telecom comments, if you like.

我認為其他一些評論是針對整體的，比如說我們的傳統電信業務。我們確實認為它正在穩定下來。我們開始看到需求回升。我們開始看到它穩定下來。雖然還為時過早，但我們認為我們的傳統電信業務正在開始穩定。另一點是 DCI。因此，DCI 仍然是一個良好的成長動力，尤其是 400ZR，而 800ZR 在過去一段時間裡一直是我們成長的堅實燈塔。如果您願意的話，它們將是四個主要的電信評論。

Right. And then just to clarify and kind of put kind of your business in context with other people's business in the industry. Is it correct to assume that everything you make for the customer is a multi-mode transceiver. Is that correct?

正確的。然後只是為了澄清並將您的業務與行業中其他人的業務放在一起。假設您為客戶製造的所有產品都是多模收發器，是否正確？這是正確的嗎？

No. We make all kinds of transceivers, single-mode, multimode. Everything.

不。我們生產各種類型的收發器，單模、多模。一切。

Okay. Okay. So I guess, though, how would you position like the products that you make versus other people's products out there, for instance, that use EMLs, is there significant overlap in those applications? Or do you think that there are kind of different products for different parts of the network?

好的。好的。所以我想，儘管如此，您如何定位自己生產的產品與其他人的產品（例如使用 EML 的產品）相比，這些應用程式是否存在顯著重疊？或者您認為網路的不同部分有不同的產品嗎？

I think, again, it's probably more of a question for our customers than for us. I mean we make whatever the customers want us to make. And again, in broad terms, right now with our big customer there, there's really TWO sources, if you like, for products that have their own design, which we make, their own designs, floors, which we make. And then there's the merchant transceiver suppliers as well. But the puts and takes around kind of who is -- which one is best suited to which application, we leave that to our customers to talk about.

我再次認為，這可能更多的是我們的客戶而不是我們自己的問題。我的意思是，客戶想要我們生產什麼，我們就生產什麼。再說一次，從廣義上講，現在我們的大客戶在那裡，如果你願意的話，確實有兩個來源，可以找到我們製造的有自己設計的產品，我們製造的他們自己的設計、地板。另外還有商用收發器供應商。但是，關於誰是誰——哪一個最適合哪種應用程序，我們將其留給客戶來討論。

Okay. Then finally, I actually even feel a little bit embarrassed to this question. because it really seems to be trying to read the tea leaves way too closely. But if we just look at the 800G business, and thanks for breaking that out, just as the sequential growth looks like maybe it was at a low point in the fourth quarter, and from the guide, it sounds like it maybe be a little bit faster sequentially in the first quarter than it was in the fourth quarter? And is there anything at all to read about the market by that?

好的。最後，我甚至對這個問題感到有點尷尬。因為它似乎真的太仔細地閱讀茶葉了。但如果我們只看 800G 業務，感謝您打破這一點，就像環比增長看起來可能在第四季度處於低點一樣，從指南來看，聽起來可能有點低第一季度的環比速度比第四季度快？關於市場有什麼值得讀的嗎？

I don't think so. I don't think there's a whole -- I wouldn't read a whole it into that. We certainly don't read anything significant into that, Mike.

我不這麼認為。我不認為有一個完整的——我不會完整地解讀它。我們當然沒有讀到任何重要的內容，麥克。

George Notter, Jefferies.

喬治諾特，傑弗里斯。

I wanted to ask about Building 10, I think the way you phrased it, Seamus, was that you were going to make the decision on Building 10 during this fiscal year. Did you make that decision during the June quarter that you're breaking ground in the June quarter? Or did you mean to infer that you could break ground in any one of the next several quarters?

我想問關於 10 號樓的問題，Seamus，我認為您的措辭方式是您將在本財年就 10 號樓做出決定。您是否在六月季度做出了在六月季度破土動工的決定？或者您的意思是推斷您可以在接下來的幾個季度中的任何一個季度破土動工？

No, we've made the decision, I'm hoping said in our prepared remarks was that we would break ground in the fiscal year -- in the new fiscal year, which we're now in. So we've taken the decision to 200 -- sorry, 2 million square foot facility or it will be a 2 million square foot facility, so double the size of Building 9, and we'll break ground on that in this fiscal year.

不，我們已經做出了決定，我希望在我們準備好的發言中所說的是，我們將在本財年破土動工——在我們現在所處的新財年。因此，我們決定建造 200 座——抱歉，200 萬平方英尺的設施，或者將是 200 萬平方英尺的設施，因此是 9 號樓面積的兩倍，我們將在本財年破土動工。

Got it. Okay. So you mentioned it's 1.5 years to get it up and running. Is that 1.5 years from today? Is that 1.5 years from quarter or two?

知道了。好的。所以你提到它的啟動和運作需要 1.5 年的時間。距離今天還有1.5年嗎？是從一、兩個季度算起 1.5 年嗎？

From when we break out -- I mean we generally -- once we make the decision, obviously, these are significant investments, and it's a major undertaking, major project. We will typically make the decision. Then of course, we have to go out to out to tender and make sure we have all the permits lined up, so that takes a little bit of time. And then we'll break ground at some point in the next few quarters. We'll update on that in the future. And then from once we break ground, it's about 18 months.

從我們爆發的時候開始——我的意思是我們一般來說——一旦我們做出決定，顯然，這些都是重大投資，而且是一項重大事業、重大計畫。我們通常會做出決定。當然，我們必須出去招標並確保所有許可證都齊全，所以這需要一點時間。然後我們將在接下來幾季的某個時候破土動工。我們將來會對此進行更新。從破土動工算起，大約有18個月的時間。

Okay. Cool. Okay. So can I assume that you're at a 70% utilization rate then right now on Building 9. I think in the past, you've talked about that as being the threshold at which you guys make a decision.

好的。涼爽的。好的。那我可以假設 9 號大樓現在的使用率為 70%嗎？我想在過去，你們曾說過這是你們做出決定的門檻。

We don't break that number out anymore. You can assume anything you like, really. We don't break that number out. We did historically, and it just wasn't productive. And that's the guideline we had set ourselves in the past. But when we get to 70% on the last building, we would pull the trigger on the next building. But really, the -- like I said, there's very little very little downside risk to building our next building a little bit earlier.

我們不再透露這個數字了。你可以假設任何你喜歡的事情，真的。我們不會透露這個數字。我們歷史上曾經這樣做過，但效果並不理想。這就是我們過去為自己設定的指導方針。但當我們在最後一棟建築物上達到 70% 時，我們就會扣動扳機建造下一棟建築。但實際上，正如我所說，提前建造我們的下一棟大樓幾乎沒有任何下行風險。

Even if we don't end up filling it, there's really very little downside risk, about 15 basis points. And the upside opportunity is huge so. We're not going to confirm the utilization percentage. Other than to say, Building 8 sales up much faster than we thought it would and so is Building 9, it's filling up faster than we had anticipated. So we don't want to -- we want to make sure we don't get caught flat footed. Some of these big opportunities if and when they come our way in the future, we want to make sure we're ready.

即使我們最終沒有填補它，下行風險也很小，大約 15 個基點。上升的機會是巨大的。我們不會確認利用率。除此之外，8 號樓的銷售成長速度比我們想像的要快得多，9 號樓的銷售速度也比我們預期的還要快。所以我們不想——我們想確保我們不會措手不及。如果未來出現一些重大機遇，我們希望確保我們已做好準備。

Got it. Great. And then just one last follow-up. So on the Ciena win, I guess, from the timing of Building 10 breaking ground and then being up and running, I assume the Ciena win is going to come on relatively slowly. Like if I look at Ciena's optical business, obviously, there are multiples of the size of Cisco. Cisco is a 10% customer for you. I guess I'm just -- I'm wondering if it's fair to say that it will take some time to really get that business ramp.

知道了。偉大的。然後是最後一個後續行動。因此，我猜想，從 10 號樓破土動工然後投入運行的時間來看，Ciena 的勝利將會相對緩慢。就像我看看 Ciena 的光學業務一樣，顯然，其規模是思科的數倍。思科是您 10% 的客戶。我想我只是 - 我想知道是否可以公平地說，需要一些時間才能真正實現業務成長。

Yeah, it'll really begin to ramp in early calendar, we call it, 2025 or the second half of our fiscal year. So really into the March or even into the June quarter, our fiscal Q4. So the ramp will be more of a FY25 story than an -- sorry, an FY26 story than an FY25 story. We'll be -- and we already are working on elements of it, but we really don't start to ramp it in earnest until the March and the June quarter.

是的，它將在早期（我們稱之為 2025 年或我們財年的下半年）真正開始成長。因此，真正進入三月甚至六月季度，即我們的第四財季。因此，斜坡將更像是 25 財年的故事，而不是——抱歉，是 26 財年的故事，而不是 25 財年的故事。我們將會——而且我們已經在研究其中的一些內容，但直到三月和六月季度我們才真正開始認真地推進它。

Thank you. And that's all the time we have for Q&A today. I will turn the call back to Seamus Grady for closing comments.

謝謝。這就是我們今天問答的全部時間。我會將電話轉回謝莫斯·格雷迪以徵求結束意見。

Thank you. Thank you for joining our call today. We're very pleased with our record quarter and fiscal year. We're optimistic that our business momentum will continue into the first quarter as we extend our leadership position in the market. We look forward to speaking with you again and to seeing those of you who will be attending the Jefferies conference next week. Goodbye.

謝謝。感謝您今天加入我們的電話會議。我們對創紀錄的季度和財年感到非常滿意。我們樂觀地認為，隨著我們擴大市場領導地位，我們的業務動能將持續到第一季。我們期待再次與您交談，並期待與下週參加傑弗里斯會議的各位見面。再見。

And with that, thank you all for participating in today's conference. You may now disconnect.

在此，感謝大家參加今天的會議。您現在可以斷開連線。