Fabrinet (FN) 2025 Q1 法說會逐字稿

Okay, afternoons, financial results conference call for the first quarter of fiscal year 2025. At this time, all participants in a listen-only mode. Later, we will conduct a question-and-answer session and instructions on how to participate will be provided at that time. As a reminder, today's call is being recorded. I would now like to turn the call over to your host for today, Garo Toomajanian Vice President of Investor Relations. Please go ahead.

好的，下午，2025 財年第一季財務業績電話會議。此時，所有參與者都處於只聽模式。稍後，我們將進行問答環節，屆時將提供如何參與的說明。提醒一下，今天的通話正在錄音。現在我想將電話轉給今天的主持人、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 financial and operating results for the first quarter of fiscal year 2025 which ended September 27, 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，與我一起討論 Fabrinet 2025 財年第一季（截至 2024 年 9 月 27 日）的財務和營運業績。今天的嘉賓是執行長 Seamus Grady 和財務長 Csaba Sverha。本次電話會議正在網路直播，並將在我們網站的投資者部分（位於投資者）上提供重播。Fabrinet.com。

During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the investor 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.

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。

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations.

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。

These statements reflect our opinions only as of the date of this presentation and we undertake no obligation to revise them in light of new information or future events, except as required by law. For a description of the risk factors that may affect our results, please refer to our recent SEC filings in particular, the section captioned risk factors in our form 10-K filed on August 20, 2024.

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。有關可能影響我們結果的風險因素的說明，請特別參閱我們最近向 SEC 提交的文件，即我們於 2024 年 8 月 20 日提交的 10-K 表格中標題為「風險因素」的部分。

We will begin the call with remarks from Seamus and Csaba followed by time for questions. I would now like to turn the call over to Fabrinet's CEO Seamus Grady.

我們將首先由 Seamus 和 Csaba 發表講話，然後是提問時間。我現在想將電話轉給 Fabrinet 的執行長 Seamus Grady。

Thank you. Good afternoon. And thanks to those of you joining our call today, we started fiscal year 2025 with significant momentum across our business. First quarter revenue of $804 million was well above the top end of our guidance range increasing 17% from a year ago and 7% from Q4. Margins were very healthy with operating margin of 10.7% in the quarter.

謝謝。午安.感謝各位今天加入我們的電話會議，我們的 2025 財年伊始，整個業務就呈現出強勁的發展勢頭。第一季營收為 8.04 億美元，遠高於我們指引範圍的上限，比去年同期成長 17%，比第四季成長 7%。利潤率非常健康，本季營業利益率為 10.7%。

These results enabled us to deliver non-GAAP EPS at the upper end of our guidance range of $2.39 even after a [ $0.19 ] headwind from foreign exchange revaluations in the quarter.

這些結果使我們能夠實現非 GAAP 每股收益達到指導範圍的上限 2.39 美元，即使在本季度外匯重估帶來 [ 0.19 美元 ] 逆風的情況下也是如此。

All in all, we are very proud of these results and our strong start to the fiscal year. As we anticipated revenue was up sequentially and year over year for every major product group. In optical communications Datacom revenue grew 36% from a year ago, driven mainly by optical interconnect products for AI applications.

總而言之，我們對這些成果和本財年的強勁開局感到非常自豪。正如我們預期的那樣，每個主要產品組的收入均連續成長且逐年成長。在光通訊領域，數據通訊收入年增36%，主要受到人工智慧應用光互連產品的推動。

We remain optimistic about positive long term data trends for our business and our position as a leading contract manufacturer serving this rapidly expanding market.

我們對我們業務的積極長期數據趨勢以及我們作為服務於這個快速擴張市場的領先合約製造商的地位保持樂觀。

We are encouraged by the results of our telecom business in the quarter which saw year over year revenue growth for the first time in six quarters. Demand for traditional telecom products appears to have leveled out while growth continues to come from data centre interconnect products as well as telecom systems where we continue to win business.

我們對本季電信業務的業績感到鼓舞，營收在六個季度中首次實現同比增長。對傳統電信產品的需求似乎已經趨於平穩，而成長繼續來自資料中心互連產品以及我們繼續贏得業務的電信系統。

We're optimistic that over time, the telecom headwinds that the industry has been experiencing will turn into tailwinds and that our telecom revenue growth will be further bolstered by continued demand for DCI and telecom system products.

我們樂觀地認為，隨著時間的推移，該行業所經歷的電信逆風將轉變為順風，對 DCI 和電信系統產品的持續需求將進一步推動我們的電信收入成長。

Turning to non-optical communications, we saw accelerating revenue growth in the quarter driven mostly by strong automotive revenue that exceeded $100 million for the first time. Within the automotive market EV charging infrastructure products continue to see excellent momentum.

談到非光通信，我們看到本季營收成長加速，主要是由於強勁的汽車收入首次超過 1 億美元。在汽車市場中，電動車充電基礎設施產品持續呈現良好的發展動能。

Industrial laser revenue was also strong reaching its highest level in two years. We believe the strong automotive and industrial laser trends can continue into the second quarter.

工業雷射收入也很強勁，達到兩年來的最高水準。我們相信強勁的汽車和工業雷射趨勢將持續到第二季​​。

As you know, last quarter, we announced that we would be breaking ground on building 10 during the fiscal year.

如您所知，上個季度，我們宣布將在本財年破土動工建造 10 號大樓。

I'm happy to report that we are making significant progress in lining up contractors and receiving the necessary approvals. We're optimistic that construction will begin by the end of the calendar year on this facility which will increase our total footprint by more than 50% and help support our growth for the next several years.

我很高興地報告，我們在尋找承包商和獲得必要的批准方面正在取得重大進展。我們樂觀地認為，該設施的建設將於今年年底開始，這將使我們的總佔地面積增加 50% 以上，並有助於支持我們未來幾年的成長。

In summary, we had an excellent start to fiscal year 2025 highlighted by continued acceleration in revenue growth while also continuing to deliver industry leading operating margins. We're optimistic that our positive business momentum will extend into the second quarter as reflected in the outlook that Csaba will discuss in a moment. Now, I'll turn the call over to Csaba for more financial details on our first quarter and our guidance for the second quarter of fiscal 2025.

總之，我們的 2025 財年開局良好，營收成長持續加速，同時持續實現業界領先的營業利益率。我們樂觀地認為，我們積極的業務勢頭將延續到第二季​​度，正如 Csaba 稍後將討論的前景所反映的那樣。現在，我將把電話轉給 Csaba，以了解我們第一季的更多財務細節以及 2025 財年第二季的指導。

Thank you, Seamus and good afternoon, everyone. We had a great start to the year first quarter revenue of $804 million increased 17% from a year ago and 7% from Q4 and represented a new record level of revenue for the company.

謝謝 Seamus，大家下午好。今年第一季我們取得了良好的開局，營收為 8.04 億美元，比去年同期成長 17%，比第四季成長 7%，創下了公司營收的新紀錄。

The higher exchange rate for the Thai baht meant that our FX evaluation loss was higher than expected in the quarter at $7 million or $0.19 per diluted share.

泰銖匯率走高意味著我們本季的外匯評估損失高於預期，為 700 萬美元，即稀釋後每股 0.19 美元。

Even with that headwind non-GAAP EPS was at the upper end of our guidance range at $2.39.

即使面臨這樣的不利因素，非 GAAP 每股盈餘仍處於我們指引範圍的上限，為 2.39 美元。

Details of our revenue breakdown are included in the investor presentation on our website, and I will focus my comments on some of the more notable metrics.

我們的收入細目詳情包含在我們網站上的投資者簡報中，我將集中評論一些更值得注意的指標。

In the first quarter, optical communications revenue was $626 million or 78% of total revenue up 17% from a year ago and 5% from Q4. Within optical communications Datacom revenue was $329 million or 53% of optical communications revenue. An increase of 36% from a year ago and 5% from the prior quarter. Telecom revenue was $297 million or 47% of optical communications revenue and increased 2% from a year ago and 6% from Q4.

第一季光通訊營收為6.26億美元，佔總營收的78%，年增17%，季增5%。在光通訊領域，數據通訊收入為 3.29 億美元，佔光通訊收入的 53%。較去年同期成長 36%，較上一季成長 5%。電信收入為 2.97 億美元，佔光通訊收入的 47%，比去年同期成長 2%，比第四季成長 6%。

Looking at the optical communications trends by data rate, the most noteworthy result was the relative strength of products rated below 800 gig. Revenue from products below 800 gig was $262 million in the first quarter up 33% from a year ago and 17% from Q4.

從數據速率來看光通訊趨勢，最值得注意的結果是800G以下產品的相對優勢。第一季 800 兆以下產品的營收為 2.62 億美元，比去年同期成長 33%，比第四季成長 17%。

The strong performance was due to strength from Datacom programs and from certain data centre Interconnect products such as 400 ZR which are classified as telecom products. As in the fourth quarter, 400 ZR products were 10% of optical communications revenue. Revenue from products rated 800 gig or faster was $257 million up 19% from a year ago and down 1% from Q4 as new customer programs are early in their product ramps.

強勁的業績得益於資料通訊計畫和某些資料中心互連產品（例如被歸類為電信產品的 400 ZR）。截至第四季度，400個ZR產品佔光通訊收入的10%。評級為 800 gig 或更快的產品收入為 2.57 億美元，比去年同期增長 19%，比第四季度下降 1%，因為新客戶計劃正處於產品升級的早期階段。

Revenue from optical communications products that are non-speed rated including rodents, amplifiers, fiber arrays and other devices was $107 million. Down $7 million from Q4 revenue from non-optical communications saw strong growth in the first quarter at $178 million. Up 17% from a year ago and 13% from Q4.

來自非速度等級光通訊產品（包括囓齒動物、放大器、光纖陣列和其他設備）的收入為 1.07 億美元。非光通訊收入較第四季下降 700 萬美元，但第一季強勁成長，達到 1.78 億美元。較去年同期成長 17%，較第四季成長 13%。

This growth continues to be driven mainly by EV charging infrastructure programs in the automotive market.

這一增長繼續主要由汽車市場的電動車充電基礎設施項目推動。

As I discuss the details of our P&L expense and profitability metrics will be on a non-GAAP basis unless otherwise noted. Gross margin in the first quarter was 12.7% an increase of 20 basis points from the fourth quarter.

正如我所討論的，除非另有說明，否則我們的損益費用和盈利指標的詳細資訊將基於非公認會計原則（Non-GAAP）。第一季毛利率為12.7%，較第四季成長20個基點。

Operating expenses were $60 million and were again less than 2% of revenue. Operating income was a record $86 million representing an operating margin of 10.7% which was consistent with the fourth quarter. Interest income of $11 million in the quarter was in line with Q4. A large part of this income was offset by the greater than expected foreign exchange evaluation loss of $7 million. Effective GAAP tax rate was 4.2% in the first quarter. We expect that our tax rate will remain in the mid-single digits this year.

營運費用為 6 千萬美元，再次低於收入的 2%。營業收入達到創紀錄的 8,600 萬美元，營業利潤率為 10.7%，與第四季持平。本季利息收入為 1,100 萬美元，與第四季持平。這筆收入的很大一部分被高於預期的 700 萬美元外匯評估損失所抵消。第一季有效 GAAP 稅率為 4.2%。我們預計今年的稅率將維持在中個位數。

Non-GAAP net income of $87 million or $2.39 per diluted share.

非 GAAP 淨利潤為 8,700 萬美元，或稀釋後每股收益 2.39 美元。

Turning to our balance sheet, the end of the first quarter with cash and short-term investments of $909 million. Up $50 million from the end of the fourth quarter.

轉向我們的資產負債表，第一季末現金和短期投資為 9.09 億美元。較第四季末增加 5000 萬美元。

Operating cash flow in the quarter was consistent with Q4 at $83 million. CapEx was $20 million resulting in free cash flow of $63 million in the first quarter.

本季營運現金流與第四季持平，為 8,300 萬美元。第一季資本支出為 2,000 萬美元，自由現金流為 6,300 萬美元。

During the first quarter, we did not repurchase any shares. We anticipate being more active in our repurchase program during the remainder of the fiscal year and have $200 million authorized for share buybacks.

第一季度，我們沒有回購任何股票。我們預計在本財年剩餘時間內將更積極地實施回購計劃，並已授權 2 億美元用於股票回購。

Now, I will turn to our guidance for the second quarter of fiscal year 2025.

現在，我將談談我們對 2025 財年第二季的指導。

We are optimistic that after delivering five quarters in a row of record-breaking revenue, we are well positioned for another record quarter. For the second quarter, we expect total revenue to be between $800million to $820 million. By major product area, we anticipate year over year growth from each of Datacom, telecom and [auto]. On a sequential basis, we anticipate growth in total revenue as well driven mainly by Telecom with Datacom and auto flat to slightly up from Q1.

我們樂觀地認為，在連續五個季度創紀錄的收入之後，我們已做好準備再創紀錄的季度。我們預計第二季總營收將在 8 億至 8.2 億美元之間。按主要產品領域來看，我們預期數據通訊、電信和[汽車]。從環比來看，我們預計總收入的成長主要由電信、數據通訊和汽車推動，將比第一季略有成長。

We expect topline tend to also be reflected in our profitability results. We anticipate that a strengthening Thai Baht will begin putting increased pressure on gross margins.

我們預計營收也往往反映在我們的獲利結果中。我們預計泰銖走強將開始給毛利率帶來更大的壓力。

We believe we can largely offset that impact with continued operating leverage, which should result in operating margins consistent with our recent performance.

我們相信，我們可以透過持續的經營槓桿在很大程度上抵消這種影響，這應該會導致營業利潤率與我們最近的業績保持一致。

As a result, we anticipate EPS to be between $2.44 to $2.52 per diluted share.

因此，我們預計稀釋後每股收益將在 2.44 美元至 2.52 美元之間。

In summary, we are excited with our strong start to fiscal 2025 and are confident that we will see continued momentum in our business as we look ahead. Operator, we are now ready to open the call for questions.

總之，我們對 2025 財年的強勁開局感到興奮，並相信展望未來，我們的業務將保持持續成長的勢頭。接線員，我們現在準備開始提問。

Thank you. (Operator Instructions).

謝謝。（操作員說明）。

And our first question for the day will be coming from Karl Ackerman of BNP. Your line is open.

今天我們的第一個問題將來自法國巴黎銀行的卡爾·阿克曼。您的線路已開通。

Yes, thank you. I appreciate the outlook for the December quarter with regard to the end markets themselves specifically though, with regard to Datacom. And they sound to be largely flattish sequentially in December, but if we could just drill down a bit further, do you anticipate growth of 800 gig transceiver revenue in the December quarter or should we anticipate that 800 gig transceiver revenue maybe flat to down through the first half of 2025 until [Uhg] network interface cards are more readily available in the market. And I have a follow up, please.

是的，謝謝。我很欣賞 12 月季度的終端市場本身的前景，特別是數據通訊方面的前景。聽起來 12 月份的環比基本持平，但如果我們能進一步深入研究，您是否預計 12 月份季度 800 gig 收發器收入會增長，或者我們是否應該預計 800 gig 收發器收入可能持平甚至下降2025 年上半年，直到[Uhg] 網路介面卡在市場上更容易買到。請跟進。

Hi, Karl, thanks. Thanks for the question. So yeah, if you, if you look at our Datacom growth, you know, we're very optimistic about the long-term Datacom trends and we believe we will continue to be the beneficiary of growth in the Datacom market. Of course, our biggest Datacom program with NVIDIA, it's a little different from than most and that they have also qualified optical transceivers from merchant vendors. But we're the sole source for their designed their design products what we have seen is a little bit of mix shift in the quarter. You know, our Datacom business is up but the mix has shifted around between 400 gig and 800 gig really while we transition to 1.6.

嗨，卡爾，謝謝。謝謝你的提問。所以，是的，如果你看看我們的數據通訊成長，你就會知道，我們對長期數據通訊趨勢非常樂觀，我們相信我們將繼續成為數據通訊市場成長的受益者。當然，我們與 NVIDIA 合作的最大數據通訊專案與大多數專案略有不同，而且他們還擁有來自商業供應商的合格光收發器。但我們是他們設計產品的唯一來源，我們在本季看到了一些混合變化。您知道，我們的數據通訊業務有所成長，但當我們過渡到 1.6 時，混合數量確實在 400 GB 和 800 GB 之間變化。

So, we still have 100% market share of the NVIDIA designed transceivers, irrespective of data rate. But the exact timing of, let's say when 1.6 will begin to ramp in nearest and what the outlook is for 800 versus 400 we wouldn't really be prepared to give that level of granularity, but 800 gig remains robust. 400 gig remains robust, and you know, we have a lot of installed capacity for really all of those speeds and we're getting geared up, I guess, to ramp 1.6 once, once the product that it goes into becomes more, more generally available.

因此，無論資料速率如何，我們仍然擁有 NVIDIA 設計的收發器 100% 的市場份額。但是，假設 1.6 何時開始推出，以及 800 與 400 的前景如何，我們並沒有真正準備好給出這種粒度級別，但 800 gig 仍然強勁。 400 gig 仍然強勁，你知道，我們擁有大量的裝機容量來滿足所有這些速度，我想，一旦它所涉及的產品變得更加普遍，我們就準備提升 1.6 一次可用的。

Our overall relationship with NVIDIA remains very strong. You know, we do a very good job for them. They're very happy with our performance and we continue to, you know, to install capacity to support their needs.

我們與 NVIDIA 的整體關係仍然非常牢固。你知道，我們為他們做得很好。他們對我們的表現非常滿意，您知道，我們將繼續安裝容量來滿足他們的需求。

Yeah, thanks for that. I appreciate that. For my follow up is the pickup in 400 gig revenue entirely weighted toward growth of coherent ZR pluggable or is there a new business win or something else? With regard to 400 gig Datacom that's driving that sequential uptick in the quarter.

是的，謝謝你。我很欣賞這一點。我的後續行動是 400 演出收入的成長完全取決於相干 ZR 可插拔的成長，或者是否有新的業務勝利或其他什麼？400 兆數據通訊推動了本季的連續成長。

Yeah, there's a new business win there. That, that's primarily responsible for the growth and it's a mix, some of it is, is mix shift with our main customer between 800 and 400 but there's also a nice, a nice chunk of growth with a new win at 400 gig.

是的，那裡有一個新的業務勝利。這主要是成長的原因，它是一種混合，其中一些是與我們的主要客戶在 800 到 400 之間的混合轉變，但也有一個很好的增長，在 400 演出中取得了新的勝利。

Perfect. Thank you. I'll see the fourth.

完美的。謝謝。我會看到第四個。

Thank you.

謝謝。

Thank you one moment for the next question.

謝謝您提出下一個問題。

And our next question will be coming from the line of Tim Savageaux of Northland capital. Your line is open.

我們的下一個問題將來自北國首府蒂姆·薩瓦喬（Tim Savageaux）。您的線路已開通。

Hi, good afternoon. Can you guys hear me? Okay

嗨，下午好。你們聽得到我說話嗎？好的

Yes, Tim, we can hear you fine.

是的，提姆，我們聽得清楚。

Okay, Great. But is acting a little weird. I just wanted to follow up on that discussion you were just having, with regard to a new business win with, I'm assuming that's with the current customer and just sort of extending your reach there or is that a new customer. And, and did you say whether that was Telecom or Datacom?

好的，太好了。但表現得有點奇怪。我只是想跟進您剛剛進行的討論，關於新的業務勝利，我假設這是與當前客戶的合作，只是擴大了您的業務範圍，或者是新客戶。而且，您是否說過那是電信還是數據通訊？

It's, it's with an existing customer. In fact, you're right. Tim, it is a telecom product actually, it's a DCI product with an existing customer. So, it's actually not a Datacom when it's a telecom win, although it is, you know, 400 gig transceiver.

是的，是與現有客戶合作的。事實上，你是對的。Tim，它實際上是一個電信產品，是一個現有客戶的 DCI 產品。因此，當它是電信領域的勝利時，它實際上不是數據通信，儘管您知道，它是 400 GB 收發器。

Got it. And I think you addressed this, but I just want to make sure I heard it right. And the mix shift you're talking about in Datacom is within your biggest customer or are there other customers doing 400 gig that's driving that mix shift? I think it was the former.

知道了。我認為你已經解決了這個問題，但我只是想確保我沒聽錯。您在 Datacom 中談論的混合轉變是在您最大的客戶中進行的，還是有其他客戶正在做 400 場演出來推動這種混合轉變？我認為是前者。

The former, the mix shift that I talked about is the mix between 800 and 400 gig, which again, we don't fully have visibility as to what's causing that at all times. But, you know, for us, again, our focus is on making sure we're the, we're servicing what the customer needs from us for their design products. And sometimes like we saw last quarter, there's a little bit of mix shift, a little bit more 400 gig than we would have thought. Maybe going into the quarter, maybe a little bit less 800 gig. And then, you know, 1.6 we're getting geared up to ship as soon as the, you know, to ship in volume, as soon as the customer gives us the signal to start ramping that. But yeah, that mix shift was within our main customer there.

前者，我談到的混合轉變是 800 和 400 演出之間的混合，同樣，我們始終無法完全了解導致這種情況的原因。但是，您知道，對我們來說，我們的重點是確保我們能夠滿足客戶對他們的設計產品的需求。有時就像我們上個季度看到的那樣，會有一點混合變化，比我們想像的要多一點 400 場演出。也許進入本季度，可能會少一點 800 場演出。然後，你知道，一旦客戶向我們發出開始增加數量的信號，我們就準備好盡快批量發貨。但是，是的，這種混合轉變發生在我們的主要客戶內部。

Okay. But, and once again, just following what you're just discussing there on 1.6 sounds like it's safe to assume there's no 1.6 revenue in the December quarter guide.

好的。但是，再一次，按照您剛剛在 1.6 上討論的內容，聽起來可以安全地假設 12 月季度指南中沒有 1.6 收入。

There would be some but not that we break that out. But yeah, there would be some, I mean, we would have to have already been shipping some level of 1.6. You know, we're not going to go from a standing start to ramp.

會有一些，但我們不會打破它。但是，是的，會有一些，我的意思是，我們必須已經發布了 1.6 的某個級別。你知道，我們不會從靜止開始進入斜坡。

So, you know, we've been shipping a little bit. We, we continue to ship. But, you know, they, the significant ramp is in front of us.

所以，你知道，我們已經發貨了一點。我們，我們繼續發貨。但是，你知道，他們，重要的坡道就在我們面前。

Okay, great. And last one for me, speaking of new customers, I wonder if you can give us an update or, you know, over the course of the quarter you have any greater visibility into, when you expect material business with Sienna to ramp.

好的，太好了。我的最後一個問題是，談到新客戶，我想知道您是否可以向我們提供最新情況，或者您知道，在本季度中，當您預計與Sienna 的材料業務將會增加時，您會有更大的了解。

Yeah, I think the timeline we spoke about last quarter is still pretty much accurate. You know, I think it's, it's probably at this stage, you know, nine months or so away from being a significant revenue for us.

是的，我認為我們上個季度談到的時間表仍然非常準確。你知道，我認為，在這個階段，你知道，距離成為我們的可觀收入還需要九個月左右的時間。

But you know, everything's on track. No major changes there. Since last time we spoke, we're still very excited about that. Very happy with that win and working very hard to make sure we do a good job for Sienna.

但你知道，一切都步入正軌。那裡沒有重大變化。自從上次談話以來，我們仍然對此感到非常興奮。對這場勝利感到非常高興，並非常努力地確保我們為西耶娜做好工作。

But no big changes. Since we last spoke, we have picked up additional non-Sienna new business in the quarter as well, but not that we cannot one that we can name. Unfortunately, we look to our customers to give us the go ahead if we can name them or not. But we have picked up additional business, new business to us. In one case, you know a new program and in the other case, it's a share gain in the in the optical space. But back to your question, Tim, no big change since we last spoke on Sienna.

但沒有太大的變化。自從我們上次談話以來，我們在本季度也獲得了額外的非錫耶納新業務，但並不是我們不能說的。不幸的是，無論我們能否透露他們的名字，我們都希望客戶能夠給予我們許可。但我們已經獲得了額外的業務，新的業務。在一種情況下，您知道一個新程序，而在另一種情況下，它是光學領域的份額增益。但回到你的問題，提姆，自從我們上次談論錫耶納以來沒有太大的變化。

Okay. And if I just one more quick one in there, just with regard to what you just mentioned in terms of the new, so that's optical systems business that you're referencing in these new programs or share again.

好的。如果我只是再快速介紹一下，就您剛才提到的新內容而言，這就是您在這些新計劃中引用或再次分享的光學系統業務。

Yes. In one case, it's a new product that we've been working with the customer on for some time. And in the other case, same customer, it's a share gain where we're taking a piece of system business away from one of our competitors

是的。在一個案例中，這是我們與客戶合作了一段時間的新產品。在另一種情況下，對於同一客戶，我們從競爭對手那裡奪走了一部分系統業務，這是一種份額收益

Great. Thanks very much.

偉大的。非常感謝。

Thank you, Tim.

謝謝你，提姆。

Thank you one moment for the next question, please.

謝謝您提出下一個問題。

And our next question will be coming from the line of Samik Chatterjee of JP Morgan. Your line is open.

我們的下一個問題將來自摩根大通的 Samik Chatterjee。您的線路已開通。

Hi. Thank you for taking my questions and two questions if I may. Seamus, you talked about the 800 gig revenue of the mix between 800 gig and 400 gig with your primary data com customer shifting a bit within the quarter. I was more curious if you sort of dial down into 800 gig in particular, are you seeing a mix shift in terms of your primary customers willingness to use outside suppliers with sort of different designs versus the in-house design where you are the 100% supplier? Are you seeing any mix shift relative to sort of internal versus external design and their willingness to use that within 800 gig as well? Thank you.

你好。感謝您提出我的問題以及兩個問題（如果可以的話）。Seamus，您談到了 800 gig 和 400 gig 之間的混合收入，並且您的主要數據通訊客戶在本季度內發生了一些變化。我更好奇的是，如果您特別減少到 800 演出，您是否會看到主要客戶願意使用具有不同設計的外部供應商與您 100% 的內部設計之間的混合變化供應商？您是否看到任何與內部設計和外部設計相關的混合變化，以及他們是否願意在 800 場演出中使用這種設計？謝謝。

Yes. So, we don't really have, you know, visibility into how the customer makes those decisions, you know. Yeah, as you rightly say, our biggest data program with, with NVIDIA where we're the sole source for their designed products. They designed transceivers 400, 800 and [101.66] etcetera, but they have designed, or they have approved for use in their network transceivers from merchant vendors to complement the transceivers of their own design which again are manufactured by us.

是的。因此，我們實際上無法了解客戶如何做出這些決策。是的，正如您所說，我們最大的數據計劃是與 NVIDIA 合作，我們是他們設計的產品的唯一來源。他們設計了收發器 400、800 和 [101.66] 等，但他們已經設計或批准在商業供應商的網路收發器中使用，以補充他們自己設計的收發器，而這些收發器又由我們製造。

This really helps them to secure, you know, secure supply, not from any manufacturing constraints on our side, but more so, you know, their ability to access alternate parts and components alternatives to those that are designed into their own transceivers. We don't control or even really have any visibility into how our customer decides which devices to use where.

這確實有助於他們確保供應安全，不受我們方面的任何製造限制，但更重要的是，他們能夠獲得設計到自己的收發器中的替代零件和組件的替代品。我們無法控制，甚至無法真正了解客戶如何決定在何處使用哪些設備。

However, our customers, including NVIDIA, our largest Datacom customers they commit significant resources for equipment and capacity at our sites and it's specific to their products.

然而，我們的客戶，包括 NVIDIA，我們最大的數據通訊客戶，他們為我們站點的設備和容量投入了大量資源，並且這是特定於他們的產品的。

And of course, they're motivated, you know, to leverage that capacity and those investments as much as they can that said, we do have visibility into demand for current and upcoming products that we are manufacturing for our customers. And you know, based on that visibility, we're very optimistic that we're well positioned to see continued growth.

當然，您知道，他們有動力盡可能多地利用這種能力和投資，也就是說，我們確實了解我們為客戶製造的當前和即將推出的產品的需求。你知道，基於這種可見性，我們非常樂觀地認為我們有能力看到持續成長。

But the, you know, I think it's, you know, they've approved, like, like I said, they've approved a number of merchant suppliers for transceivers and, you know, they tend to use us and the merchant transceivers, but exactly how that decision gets made. We don't really have visibility to our focus is on just ensuring that we satisfy everything that they need from us and that we retain our position as the sole source for their designed transceivers.

但是，你知道，我認為他們已經批准了，就像我說的，他們已經批准了許多收發器的商業供應商，而且，你知道，他們傾向於使用我們和商業收發器，而是如何做出這個決定的。我們並沒有真正意識到我們的重點只是確保我們滿足他們對我們的需求，並確保我們保持作為他們設計的收發器的唯一來源的地位。

Got it, got it. And if I can just clarify and also move to my second question. So, in terms of clarification, just to confirm that you don't have any capacity shortages in terms of the capacity to cater to the 800 gig demand from your primary customer that you talked about where they sort of help you with the equipment, etcetera.

明白了，明白了。如果我能澄清一下並轉到我的第二個問題。因此，澄清一下，只是為了確認您在滿足您的主要客戶的 800 演出需求方面沒有任何容量短缺，您談到了他們在設備方面為您提供的幫助等。

And then so for my second question, autos, I mean, I haven't seen any positive autos data points in a while in this macro backdrop. So how you sort of really getting driving confidence that what you're seeing in terms of auto demand is not an inventory refill versus a more sustainable sort of demand improvement there. And thank you. That's all from my side. Thank you.

對於我的第二個問題，汽車，我的意思是，在這個宏觀背景下，我已經有一段時間沒有看到任何積極的汽車數據點了。那麼，你如何真正獲得信心，相信你所看到的汽車需求不是庫存補充，而是更永續的需求改善。謝謝你。這都是我這邊的。謝謝。

No problem. Yeah, just confirm. No, we have no capacity constraint at any of the speeds at 800 gig [400.6]. We have no capacity constraints for our main customer there on automotive. Yeah, we have seen some nice growth in automotive and it's driven by share gain, not by inventory correction or anything like that or in our inventory correction rebound, share gain where we have taken business away from a competitor in the, you know, again with our main customer there on the automotive EV charging infrastructure side of the business.

沒問題。是的，確認一下就可以了不，我們在 800 gig 的任何速度下都沒有容量限制[400.6]。我們對那裡的主要汽車客戶沒有產能限制。是的，我們看到汽車行業出現了一些不錯的增長，這是由份額增長推動的，而不是庫存調整或類似的東西，或者我們的庫存調整反彈，份額增長，我們從競爭對手那裡奪走了業務，你知道，再一次我們的主要客戶是汽車電動車充電基礎設施方面的業務。

So, it's a share game. So, you know, we're quite optimistic that that's sustainable, we have to perform. We have to deliver, of course and what the customer gives the customer can take it away. But we're, you know, we're quite optimistic that business is growing nicely and we're very happy with that relationship. So it's sheer gate, not inventory rebound.

所以，這是一個分享遊戲。所以，你知道，我們非常樂觀地認為這是可持續的，我們必須表現出色。當然，我們必須交付，客戶提供的東西也可以拿走。但我們對業務成長良好感到非常樂觀，我們對這種關係感到非常滿意。所以這只是純粹的門限，而不是庫存反彈。

Thank you. Thanks for taking my questions.

謝謝。感謝您回答我的問題。

No problem. Thank you. Thank you so much.

沒問題。謝謝。太感謝了。

Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. If you would like to remove yourself from the queue. Press star 11 again and one moment for the next question. Our next question will be coming from the line of George Notter of Jefferies. Your line is open.

謝謝。溫馨提示，如果您想提問，請按電話上的星號 11。如果您想將自己從隊列中刪除。再按星號 11，稍等片刻回答下一個問題。我們的下一個問題將來自傑富瑞集團的喬治·諾特。您的線路已開通。

Hi there. Thank you very much. Hey, I guess I wanted to ask more about 1.6 Terabit transceivers for your primary customer.

你好呀。非常感謝。嘿，我想我想向您的主要客戶詢問有關 1.6 Terabit 收發器的更多資訊。

How do I think about the milestones that you know, you guys have to go through in order to generate, you know, much more significant revenue? Is it, it's simply a matter of them shipping the Blackwell platform in greater quantities and that's the catalyst for you guys or are there other milestones like specific qualifications or anything like that? I'd love to learn more about that. Thanks.

我如何看待你們所知道的、你們必須經歷的里程碑，才能產生更可觀的收入？是嗎，這只是他們大量運送 Blackwell 平台的問題，這對你們來說是催化劑，還是還有其他里程碑，例如特定資格或類似的東西？我很想了解更多相關資訊。謝謝。

Thank you, George. Yeah, so it really is down to our main customer there shipping Blackwell. You know, they have talked publicly about they had some, I think some design challenges, some yield issues. I think they call it some yield challenges for Blackwell. Not nothing to do with what we're doing. I think it's more at the foundry level.

謝謝你，喬治。是的，這確實取決於我們在那裡運送布萊克韋爾的主要客戶。你知道，他們公開談論過他們遇到了一些，我認為一些設計挑戰，一些產量問題。我認為他們稱之為布萊克威爾的一些產量挑戰。與我們正在做的事情無關。我認為更多的是在代工廠層級。

So, really, you know, once those issues are behind them and Blackwell begins to ramp in earnest, we're ready to go. So it's really a question of, you know, when the customers is beginning to start shifting, Blackwell, we should start to see 1.6 ramp up.

所以，真的，你知道，一旦這些問題得到解決並且布萊克威爾開始認真發展，我們就準備好了。所以這實際上是一個問題，你知道，當客戶開始轉變時，Blackwell，我們應該開始看到 1.6 的成長。

There's a whole range of steps we have to go through to get qualified, but that's just normal business, you know, in terms of throughput and cost and yield and everything else. And we work very closely with our customer and on all of those detailed milestones, but nothing too unusual about that. It's really just a case of Blackwell beginning to ramp that, that we believe will drive the demand increase that we're hoping to see from 1.6.

我們必須經歷一系列步驟才能獲得資格，但這只是正常業務，你知道，就吞吐量、成本、產量和其他一切而言。我們與客戶密切合作，實現所有這些詳細的里程碑，但這並沒有什麼特別之處。這實際上只是 Blackwell 開始加大力度的一個例子，我們相信這將推動我們希望從 1.6 開始看到的需求成長。

Got it super and any constraints on componentry. I know in the marketplace, people have been talking about the constraints on emails other components and any anything that feeds into that, you know, that opportunity that you see is a constraint component wise.

非常了解，並且對組件有任何限制。我知道在市場上，人們一直在談論對電子郵件其他組件以及任何與之相關的任何內容的限制，您知道，您看到的機會是明智的約束組件。

None, none that we can really speak to. No, I think, you know, I think the customer has done a really outstanding job making sure that there's ample supply and capacity and also alternatives in place for several of the critical components.

沒有，沒有我們可以真正交談的。不，我認為，你知道，我認為客戶做得非常出色，確保有充足的供應和產能，以及幾個關鍵組件的替代品。

You know, maybe one of the good things about if, if Blackwell has been delayed by a little bit. One of the good things about that is it has given the customer and of course ourselves extra time to make sure we have ample sources for each of the critical components. So, so we're quite optimistic about that. We think once 1.6 begins to ramp, we should be in good shape.

你知道，如果布萊克威爾推遲一點，這也許是一件好事。這樣做的好處之一是，它給了客戶，當然還有我們自己額外的時間，以確保我們為每個關鍵組件都有充足的來源。所以，我們對此非常樂觀。我們認為一旦 1.6 開始升級，我們就應該處於良好狀態。

Great, super, thanks very much. I appreciate it.

太好了，超級，非常感謝。我很感激。

No problem. Thank you, George.

沒問題。謝謝你，喬治。

Thank you one moment for the next question and our next question will be coming from the line of [Ryan Kones of Needham]. Your line is open.

謝謝您提出下一個問題，我們的下一個問題將來自[尼達姆的瑞安·科內斯]。您的線路已開通。

Great. Thanks for the question. Hoping to unpack telecom a little bit here. It sounds like coherent ZR. Former ZR is the main driver there and you talked about some systems business, that's a share gain. So, I assume that means the balance of the business is, you know, remains relatively stalled. So, if you can confirm that and then be do you see ZR potentially cannibalizing some of that legacy business? You've seen any of that in your thoughts with your customers in terms of forecast and such.

偉大的。謝謝你的提問。希望在這裡稍微解開電信的包裝。聽起來像是連貫的ZR。前ZR是那裡的主要驅動力，你談到了一些系統業務，這是份額成長。因此，我認為這意味著業務平衡仍然相對停滯。那麼，如果你能確認這一點，那麼你是否認為 ZR 可能會蠶食一些傳統業務？您已經在與客戶的預測等方面看到了這些想法。

Thanks Ryan. So yeah, what we've seen in the quarter. If you take our telecom business and you kind of break it into a couple of different buckets. If you like, there's the growth that we have that we had been seeing in telecom while the overall business had been down for a while, you know, ZR DCI as a category has been quite strong for us and primarily ZR, we did see what we would call traditional telecom, begin to flatten out. So, we're, and we're now starting to see some growth in traditional telecom.

謝謝瑞安。是的，我們在本季所看到的。如果你把我們的電信業務分成幾個不同的部分。如果你願意的話，我們在電信領域看到了成長，而整體業務已經下降了一段時間，你知道，ZR DCI 作為一個類別對我們來說相當強勁，主要是 ZR，我們確實看到了什麼我們稱之為傳統電信，開始趨於平緩。所以，我們現在開始看到傳統電信的一些成長。

So, you know, we're, I suppose we're optimistic that traditional telecom business, which for some time has been a headwind. We think that's about to turn to a tailwind in the, in the coming quarters.

所以，你知道，我想我們對傳統電信業務持樂觀態度，該業務在一段時間內一直是不利因素。我們認為，在未來幾個季度，這將成為順風車。

ZR and the degree to which the ZR is cannibalizing, you know, other products, you know, that there probably is a degree of that going on. We wouldn't be best positioned really to talk about that because of course, we don't make every product for every customer. So, we don't have perfect visibility into that. But certainly we've been very happy with the growth in ZR. And as you said, the win, the new business win that we, that we had in the quarter was, which was also a ZR product.

ZR 以及 ZR 蠶食其他產品的程度，你知道，可能存在一定程度的這種情況。我們不太適合談論這個問題，因為當然，我們不會為每個客戶生產所有產品。因此，我們對此沒有完全的了解。但我們確實對 ZR 的成長感到非常滿意。正如您所說，我們在本季獲得的新業務勝利也是 ZR 產品。

So, we're quite excited about ZR from our point of view, you know, if it cannibalizes something else, as long as we're making the ZR, we're okay with that, but again, not too sure if it's cannibalizing existing products or not sure about.

所以，從我們的角度來看，我們對 ZR 非常興奮，你知道，如果它會蠶食其他東西，只要我們製造 ZR，我們就可以接受，但同樣，不太確定它是否會蠶食現有產品或不確定。

That on the ZR side, then how many major customers do you have for that. And do you have any idea what kind of global share you might have for, for, for ZR pluggable coherent?

那麼在ZR方面，你有多少主要客戶。您是否知道您可能會為 ZR 可插拔相干技術擁有什麼樣的全球份額？

Right now we have six ZR customers of varying sizes and they have varying market shares. We think we have a, you know, a couple of the leaders in the space, but we have six as the customers overall, our share of ZR, we don't have great visibility to it. It's a pretty new relatively new market.

目前我們有六家ZR客戶，規模不同，市佔率也不同。我們認為我們在這個領域有幾個領導者，但我們總體上有六個客戶，我們在 ZR 中的份額，我們對此沒有很好的了解。這是一個相當新的相對較新的市場。

So the, you know, we, I guess we know what the numerator is, the denominator, we're not clear on, but we're just focused on winning, you know, as many of those customers as we can and all of the critical, the key new products with those customers and then making sure you know that where we can, we're helping those customers qualify the components that go into the module as well as the module itself. So, we work very hard with our customers to bring up their capability and their capacity. But and answer your question, we have 6 years customers right now.

所以，你知道，我們，我想我們知道分子是什麼，分母是什麼，我們不清楚，但我們只是專注於贏得盡可能多的客戶以及所有客戶向這些客戶提供關鍵的、關鍵的新產品，然後確保您知道我們正在盡可能地幫助這些客戶鑑定模組中的組件以及模組本身。因此，我們非常努力地與客戶合作，以提高他們的能力和能力。但回答你的問題，我們現在有 6 年的客戶。

Great. And I'm sure your strong position of 400 positions. You, well, for 800 ZR, when that turns up, do you have a rough idea when you think you might see some volume there at 800 ZR?

偉大的。我確信你的位置有 400 個位置。你，好吧，對於 800 ZR，當它出現時，當你認為你可能會在 800 ZR 看到一些交易量時，你有一個粗略的想法嗎？

Yes, it's already shipping.

是的，已經出貨了。

Great. All right, that's all I got. Thanks So much.

偉大的。好吧，這就是我所得到的。非常感謝。

Thank you, Ryan. Thank you.

謝謝你，瑞安。謝謝。

Thank you one moment for the next question and our next question will be coming from the line of Mike Genevive of Rosenblatt Securities. Your line is open.

謝謝您提出下一個問題，我們的下一個問題將來自羅森布拉特證券公司的麥克·吉納維夫。您的線路已開通。

Great. Thanks. I miss

偉大的。謝謝。我想念

Mike, we can't hear, we can't hear you Mike.

麥克，我們聽不到，我們聽不到你的聲音，麥克。

Okay. I, I can't do anything about that. So I'll have to, I'll have to pass.

好的。我，我對此無能為力。所以我必須通過，我必須通過。

We can hear you now, we can hear you now. Go ahead, we can hear you now.

我們現在可以聽到你的聲音，我們現在可以聽到你的聲音。繼續吧，我們現在就可以聽到你的聲音。

Okay, perfect. I'm just curious, have you won any systems business with your main Datacom customer that you can talk about.

好的，完美。我只是很好奇，您是否贏得了您可以談論的主要數據通訊客戶的任何系統業務。

This business with our main Datacom customer? I mean our place if you like in the supply chain with our main Datacom customer is we're their prime contract manufacturer for their optical interconnect products.

與我們的主要數據通訊客戶有這項業務嗎？我的意思是，如果您願意在我們的主要數據通訊客戶的供應鏈中，我們的地位是我們是他們的光學互連產品的主要合約製造商。

You know that that's really our focus. We're not trying to be greedy and go after everything. They have other suppliers and other contract manufacturers that they use.

你知道這確實是我們的重點。我們不想貪婪並追求一切。他們還有其他供應商和其他合約製造商。

So, our focus is on making sure we satisfy everything that they need from the on the optical interconnect side. That's our primary focus.

因此，我們的重點是確保我們滿足他們在光學互連方面所需的一切。這是我們的首要關注點。

Okay. Got it. And I know this was asked earlier but just I want to check again on the 1.6 Terabit. You're not seeing anything in the lasers or laser or any other component supply chain that would make you take the beginning of that cycle could be supply constraints. Nothing there.

好的。知道了。我知道之前有人問過這個問題，但我想再次檢查一下 1.6 太比特。您在雷射或雷射或任何其他組件供應鏈中沒有看到任何使您在該週期開始時可能受到供應限制的東西。那裡什麼也沒有。

Yeah, there, there's a number of, I would say new component sources that are being qualified and have been qualified already. So I think, you know, in the early days of any of these products, there's always component constraints. Somewhere along the line, there's always component constraints. But overall, I think, you know, I'm pretty impressed with the job that our customer has done and making sure they have ample, ample, ample supply and ample sources for all of the main, the main components that go into the products. So, I could be wrong, but I'm not expecting there to be huge, huge constraints on the component side.

是的，有很多，我想說的是，新的組件來源正在通過資格認證，並且已經通過資格認證。所以我認為，你知道，在任何這些產品的早期，總是存在組件限制。在此過程中，總是會存在組件限制。但總的來說，我認為，你知道，我對我們的客戶所做的工作印象深刻，並確保他們擁有充足、充足、充足的供應和產品中所有主要部件的充足來源。所以，我可能是錯的，但我並不期望組件方面有巨大的限制。

Okay. And then finally, just on the model, how should we model interest and other income for two Q? And then beyond that, what would you encourage us to put in the model?

好的。最後，就模型而言，我們應該如何為兩個 Q 的利息和其他收入建模？除此之外，您會鼓勵我們在模型中添加什麼內容？

Hi Mike. This is [JVA], obviously, we are guiding one quarter at a time. And as you have seen, our interest income was somewhat flat in the last two quarters. So, I think there will be two dynamics going on as interest rates would be coming down obviously. It would present some of some headwinds, but at the same time, our cash position has been increasing over time as well. So it helped us to maintain. So I would be reluctant to give you any outlook beyond Q2, but on the longer term as interest rates are coming down. Obviously, that would present some sort of a in the future.

嗨，麥克。這就是[JVA]，顯然，我們一次指導一個季度。正如您所看到的，過去兩個季度我們的利息收入有些持平。因此，我認為隨著利率明顯下降，將會出現兩種動態。這會帶來一些阻力，但同時，我們的現金狀況也隨著時間的推移而增加。所以它幫助我們維護。因此，我不願意向您提供第二季度之後的任何展望，但從長遠來看，因為利率正在下降。顯然，這將在未來呈現出某種形式。

All right. Thanks very much.

好的。非常感謝。

Thank you.

謝謝。

Thank you. This does conclude the Q&A session for today and I would like to go ahead and turn the call back over to Seamus for closing remarks. Please go ahead.

謝謝。今天的問答環節到此結束，我想繼續將電話轉回給 Seamus 進行結束語。請繼續。

Thank you for joining our call today. We're off to a great start in fiscal year 2025 with another quarter of record revenue with significant business momentum and several growth drivers benefiting us. We're optimistic that Q2 will represent another strong quarter for the company.

感謝您今天加入我們的電話會議。我們在 2025 財年有了一個良好的開端，營收又創歷史新高，業務勢頭強勁，多個成長動力使我們受益。我們樂觀地認為第二季將代表該公司又一個強勁的季度。

We look forward to speaking with you again and to seeing those of you who will be attending the Needham virtual conference in a couple of weeks. Goodbye.

我們期待再次與您交談，並見到幾週後將參加尼達姆虛擬會議的人們。再見。

Thank you all for joining today's conference call. You may now disconnect.

感謝大家參加今天的電話會議。您現在可以斷開連線。