Fabrinet (FN) 2021 Q1 法說會逐字稿

Good afternoon. Welcome to Fabrinet's Financial Results Conference Call for the First Quarter of Fiscal Year 2021. (Operator Instructions) As a reminder, today's call is being recorded.

下午好。歡迎來到 Fabrinet 2021 財年第一季度的財務業績電話會議。（操作員說明）提醒一下，今天的電話正在錄音中。

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 first quarter of fiscal year 2021, which ended September 25, 2020.

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 2020 年 9 月 25 日的 2021 財年第一季度的財務和運營業績。

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. 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 Csaba Sverha，首席財務官。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 recent SEC filings, in particular, the section captioned Risk Factors in our Form 10-K filed on August 18, 2020.

我想提醒您，今天的討論將包含有關公司未來財務業績的前瞻性陳述。前瞻性陳述受風險和不確定因素的影響，這些風險和不確定因素可能導致實際結果與管理層當前的預期存在重大差異。這些陳述僅反映我們截至本演示文稿之日的意見，除法律要求外，我們不承擔根據新信息或未來事件修改這些陳述的義務。有關可能影響我們結果的風險因素的描述，請參閱我們最近提交給美國證券交易委員會的文件，尤其是我們於 2020 年 8 月 18 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.

我們將以 Seamus 和 Csaba 的發言開始通話，然後是提問時間。我現在想把電話轉給 Fabrinet 的首席執行官 Seamus Grady。

Thank you, Garo, and good afternoon, everyone.

謝謝你，Garo，大家下午好。

We had an excellent first quarter with results that surpassed our expectations and reinforces our longer-term optimism.

我們在第一季度表現出色，結果超出了我們的預期，增強了我們的長期樂觀情緒。

Revenue in the first quarter was a record $436.6 million and was above the high end of our guidance range, driven primarily by stronger-than-expected performance in telecom and automotive. With a constant focus on efficiency improvements, gross margins increased to 12%, within our target range.

第一季度的收入達到創紀錄的 4.366 億美元，高於我們指導範圍的上限，這主要是由於電信和汽車領域的業績強於預期。在持續關注效率提升的情況下，毛利率增至 12%，處於我們的目標範圍內。

In addition, we continue to effectively manage operating costs. As a result, we also outperformed on the bottom line, delivering non-GAAP net income of $1.05 per diluted share. Our business also produced healthy cash flows, even as we continue to make growth investments. Operating cash flow was $34.5 million, and free cash flow was $21.9 million.

此外，我們繼續有效地管理運營成本。因此，我們在盈利方面也表現出色，實現了每股攤薄後 1.05 美元的非 GAAP 淨收入。即使我們繼續進行增長投資，我們的業務也產生了健康的現金流。經營現金流為 3450 萬美元，自由現金流為 2190 萬美元。

Looking at some of the details of the quarter. Optical communications revenue was $344 million, up 9% from the fourth quarter. Telecom revenue of $261 million grew faster than anticipated at 14% from the fourth quarter. This sequential increase of more than $30 million in telecom revenue far offset the expected decline in datacom revenue, which was down 4% from the fourth quarter at $83 million.

查看本季度的一些細節。光通信收入為 3.44 億美元，比第四季度增長 9%。電信收入為 2.61 億美元，較第四季度增長 14%，高於預期。電信收入超過 3000 萬美元的連續增長遠遠抵消了數據通信收入的預期下降，數據通信收入比第四季度下降 4%，為 8300 萬美元。

As anticipated, inventory issues that we experienced at one telecom customer now appear to be behind us. We also continue to make progress on the transfer of an optical transport system program at Cisco, which is on track to ramp in the quarters ahead. In fact, we ended the quarter on a very high note when we were awarded Cisco's EMS Partner of the Year at their annual Supplier Appreciation Event.

正如預期的那樣，我們在一個電信客戶那裡遇到的庫存問題現在似乎已經過去了。我們還在 Cisco 的光傳輸系統項目轉移方面繼續取得進展，該項目有望在未來幾個季度取得進展。事實上，當我們在 Cisco 的年度供應商答謝活動中被授予 Cisco 的年度 EMS 合作夥伴時，我們以非常高的成績結束了本季度。

Silicon photonics-based optical communications products represented 25% of total revenue in the first quarter, a historic high, driven primarily by telecom growth.

基於矽光子學的光通信產品佔第一季度總收入的 25%，創歷史新高，主要受電信增長的推動。

Revenue from QSFP28 and QSFP56 transceivers also continued to grow and was a record $59 million, up 8% from the fourth quarter. As reflected in our strong telecom performance, we continue to see strong growth at faster data rates.

QSFP28 和 QSFP56 收發器的收入也繼續增長，達到創紀錄的 5900 萬美元，比第四季度增長 8%。正如我們強勁的電信業績所反映的那樣，我們繼續以更快的數據速率實現強勁增長。

Revenue from 100-gig programs was stable at $150 million, while revenue from 400-gig and above grew 62% sequentially to $70 million.

100 兆節目的收入穩定在 1.5 億美元，而 400 兆及以上節目的收入環比增長 62% 至 7000 萬美元。

Looking at our nonoptical communications business, our performance was better than expected, with revenue increasing $3 million sequentially to $93 million. Industrial laser revenue declined as expected and was $34 million, a sequential decrease of 16%, reflecting broader demand trends.

看看我們的非光通信業務，我們的業績好於預期，收入連續增長 300 萬美元，達到 9300 萬美元。工業激光器收入如預期下降，為 3400 萬美元，環比下降 16%，反映出更廣泛的需求趨勢。

This was more than offset by automotive revenue, which increased sequentially to $35 million, a record level. A sequential revenue increase of 28% in automotive was driven by the combination of growth from new automotive programs and by an unanticipated return to growth from traditional auto programs.

這被汽車收入所抵消，汽車收入連續增長至 3500 萬美元，創歷史新高。汽車業務收入環比增長 28%，這主要得益於新汽車項目的增長以及傳統汽車項目意外恢復增長。

Sensor revenue was stable at $2 million in the first quarter, and other revenue increased $2 million to $21 million.

第一季度傳感器收入穩定在 200 萬美元，其他收入增加 200 萬美元至 2100 萬美元。

Looking to the second quarter, we expect to see similar business trends to the first quarter. We anticipate that telecom will continue to grow at a healthy pace, driven by newer programs and faster data rates. This should largely offset a decline that we anticipate in datacom revenue based on current demand signals.

展望第二季度，我們預計會看到與第一季度類似的業務趨勢。我們預計，在更新的程序和更快的數據速率的推動下，電信將繼續以健康的速度增長。這應該在很大程度上抵消我們根據當前需求信號預測的數據通信收入下降。

In nonoptical communications, we expect continued softness in industry lasers, but are optimistic that automotive revenue growth will continue and largely offset those declines. It's also worth mentioning that this near-term softness in the industrial laser market does not affect our optimism that the industrial laser industry will look to increase outsourcing in the years ahead. In fact, intense competitive pressure could even serve as a catalyst, and we remain very well positioned to benefit when this industry transition begins to take place.

在非光通信領域，我們預計工業激光器將持續疲軟，但樂觀地認為汽車收入將繼續增長並在很大程度上抵消這些下滑。還值得一提的是，工業激光市場近期的疲軟並不影響我們對未來幾年工業激光行業將尋求增加外包的樂觀看法。事實上，激烈的競爭壓力甚至可以作為催化劑，當這種行業轉型開始發生時，我們仍然處於有利地位，可以從中受益。

We continue to pursue a multifaceted growth strategy. This strategy includes leveraging the growth of the industries we serve, combined with investing in facilities and technologies that enable us to further penetrate existing customers and win new customers, both in the markets we currently serve and in new markets.

我們繼續奉行多方面的增長戰略。該戰略包括利用我們所服務行業的增長，結合對設施和技術的投資，使我們能夠在我們目前服務的市場和新市場中進一步滲透現有客戶並贏得新客戶。

Our first quarter results demonstrate that we are benefiting from the successful execution of this strategy. While we have no control over broader market trends, we remain focused on what we can control, including investments in next-generation manufacturing technologies and in capacity expansion as well as capitalizing on our early success pursuing system-level business and exploring opportunities in new markets that our advanced processes can serve. As we execute on our strategy, we believe we are very well positioned to deliver superior returns for all our stakeholders.

我們第一季度的業績表明，我們正受益於該戰略的成功執行。雖然我們無法控制更廣泛的市場趨勢，但我們仍然專注於我們可以控制的事情，包括對下一代製造技術和產能擴張的投資，以及利用我們在追求系統級業務和探索新市場機會方面的早期成功我們的先進流程可以提供服務。在執行我們的戰略時，我們相信我們有能力為所有利益相關者提供卓越的回報。

In summary, we're off to a positive start in fiscal 2021. Our strategy is working as strength from newer programs offset the softness we see in certain markets. We are optimistic that we can continue to leverage our strong reputation in the markets to further advance our position as the leading manufacturer of the most complex products.

總而言之，我們在 2021 財年開局良好。我們的戰略正在發揮作用，因為新計劃的優勢抵消了我們在某些市場看到的疲軟。我們樂觀地認為，我們可以繼續利用我們在市場上的良好聲譽，進一步提升我們作為最複雜產品的領先製造商的地位。

Now I'd like to turn the call over to Csaba for additional financial details and our guidance for the second quarter of fiscal 2021. Csaba?

現在我想把電話轉給 Csaba，了解更多財務細節和我們對 2021 財年第二季度的指導。Csaba？

Thank you, Seamus, and good afternoon, everyone. I will provide you with more details on our financial results for the first quarter and our guidance for the second quarter of fiscal year 2021.

謝謝 Seamus，大家下午好。我將為您提供有關我們第一季度財務業績和我們對 2021 財年第二季度的指導的更多詳細信息。

We were very pleased to deliver financial results that exceeded our guidance ranges for the first quarter. Revenue of $436.6 million was more than $6 million above the high end of our guidance range and a new record. Non-GAAP net income was also a record at $39.3 million or $1.05 per share, $0.05 more than the high end of our guidance range, largely due to our revenue upside and gross margin improvement. On a GAAP basis, net income was $33.1 million or $0.88 per diluted share.

我們很高興第一季度的財務業績超出了我們的指導範圍。 4.366 億美元的收入比我們指導範圍的高端高出 600 萬美元，創下新紀錄。非 GAAP 淨收入也創下了 3930 萬美元或每股 1.05 美元的歷史記錄，比我們指導範圍的高端高出 0.05 美元，這主要是由於我們的收入增長和毛利率提高。根據公認會計原則，淨收入為 3310 萬美元或每股攤薄收益 0.88 美元。

Now turning to the details of our P&L. Unless otherwise noted, profitability metrics I refer to will be on a non-GAAP basis. A reconciliation 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。除非另有說明，否則我所指的盈利能力指標將基於非公認會計原則。 GAAP 與非 GAAP 措施的對賬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。

Gross margin was 12%, up from 11.8% in the prior quarter. This improvement was primarily a result of the strong focus on manufacturing efficiencies and continued cost reduction efforts. Operating expense during the quarter was $12.5 million, or 2.9% of revenue. This produced operating income of $39.9 million or 9.1% of revenue.

毛利率為 12%，高於上一季度的 11.8%。這種改進主要是由於高度關注製造效率和持續降低成本的努力。本季度的運營費用為 1250 萬美元，佔收入的 2.9%。這產生了 3990 萬美元的營業收入，佔收入的 9.1%。

Taxes in the first quarter were $1.7 million, and our normalized effective tax rate was 4.5%.

第一季度的稅收為 170 萬美元，我們的標準化有效稅率為 4.5%。

Turning to the balance sheet and cash flow statement. At the end of the first quarter, cash, restricted cash and investments topped $0.5 billion for the first time at $503.8 million, an increase of $8.3 million from last quarter.

轉向資產負債表和現金流量表。第一季度末，現金、受限制現金和投資首次突破 5 億美元，達到 5.038 億美元，比上一季度增加 830 萬美元。

Operating cash flow was an inflow of $34.5 million. And with CapEx of $12.6 million, free cash flow was $21.9 million in the first quarter. We did not repurchase shares during the first quarter due to the smaller open window after our year-end blackout period.

經營現金流為 3450 萬美元的流入。第一季度資本支出為 1260 萬美元，自由現金流為 2190 萬美元。由於年終停電期後開放窗口較小，我們在第一季度沒有回購股票。

At the end of the quarter, we had $100 million remaining in our share repurchase program. We expect to implement a 10b5-1 plan in the second quarter that will enable us to repurchase shares even during blackout periods. This program will complement opportunistic open market purchases that remain subject to blackout periods.

在本季度末，我們的股票回購計劃中剩餘 1 億美元。我們預計在第二季度實施 10b5-1 計劃，這將使我們即使在停電期間也能回購股票。該計劃將補充仍然受制於停電期的機會主義公開市場採購。

Our primary capital allocation priorities continue to be risk mitigation, investment in long-term growth and returning value to shareholders through share repurchases. With our strong balance sheet, we expect to be active in all these areas in fiscal 2021.

我們的主要資本配置優先事項仍然是降低風險、投資於長期增長以及通過股票回購為股東回報價值。憑藉我們強勁的資產負債表，我們預計將在 2021 財年活躍於所有這些領域。

I would now like to turn to our guidance for the second quarter of fiscal year 2021. We believe the trends we experienced in the first quarter will continue in the second quarter. In optical communications, we expect strong telecom revenue, driven by healthy demand from higher data rate products, combined with our newer program ramps.

我現在想談談我們對 2021 財年第二季度的指導。我們相信我們在第一季度經歷的趨勢將在第二季度繼續。在光通信方面，我們預計電信收入將受到更高數據速率產品的健康需求以及我們更新的項目的推動。

This should more than offset export restriction-driven headwinds at any end customers of our customers. We expect datacom softness to continue with revenue down sequentially based on current Q2 forecast.

這應該足以抵消我們客戶的任何終端客戶的出口限制驅動的逆風。根據當前的第二季度預測，我們預計數據通信業務將繼續疲軟，收入將繼續下降。

Still, we believe that telecom strength will offset this weakness for total optical communications revenue that is roughly flat with Q1. In nonoptical communications, we believe the near-term weakness from the industrial laser market will continue in Q2. On the other hand, we anticipate growing demand from new technologies like LIDAR, as well as traditional automotive programs continuing to improve. This automotive trend should offset most, but not all of the softness from the laser industry.

儘管如此，我們相信電信的實力將抵消與第一季度大致持平的光通信總收入的這一弱點。在非光通信領域，我們認為工業激光市場的近期疲軟將在第二季度繼續。另一方面，我們預計 LIDAR 等新技術的需求將不斷增長，而傳統的汽車項目也會不斷改進。這種汽車趨勢應該能抵消大部分但不是全部來自激光行業的疲軟。

Therefore, we anticipate total nonoptical communication revenue to be slightly down sequentially. We expect total revenue in the second quarter to be between $420 million to $440 million. From a profitability perspective, we are optimistic that we can drive efficiencies and anticipate that net income will be roughly flat with our record first quarter results. We expect EPS to be in the range of $1 to $1.07 per diluted share.

因此，我們預計非光通信總收入將略有下降。我們預計第二季度的總收入將在 4.2 億美元至 4.4 億美元之間。從盈利能力的角度來看，我們對提高效率持樂觀態度，並預計淨收入將與我們創紀錄的第一季度業績大致持平。我們預計每股攤薄每股收益在 1 美元至 1.07 美元之間。

In summary, we are pleased with our execution in the first quarter and our financial results that exceeded our guidance ranges. We are proud of the success of various growth initiatives and our financial performance, and we look forward to continuing to deliver profitable growth as we execute on our strategy.

總而言之，我們對第一季度的執行情況以及超出我們指導範圍的財務業績感到滿意。我們為各種增長計劃的成功和我們的財務業績感到自豪，我們期待在執行我們的戰略時繼續實現盈利增長。

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

接線員，我們現在可以開始提問了。

(Operator Instructions) And our first question comes from the line of John Marchetti with Stifel.

（操作員說明）我們的第一個問題來自 John Marchetti 與 Stifel 的合作。

Seamus, I was wondering if you could talk a little bit about some of the trends in datacom. Obviously, seeing very good telecom strength here. But just wanted to get your take on maybe where we are in sort of this downtrend on the datacom side? And maybe looking out maybe a little bit longer term, to see what your expectations are for that portion of the business turning around a little bit?

Seamus，我想知道你是否可以談談數據通信的一些趨勢。顯然，在這裡看到非常好的電信實力。但是只是想讓您了解我們在數據通信方面的這種下降趨勢中所處的位置嗎？也許從更長遠的角度來看，看看您對這部分業務有所好轉的期望是什麼？

Yes John, unlike maybe some of the prior slowdowns that we saw where a lot of the slowdown previously was driven by pricing, that pricing seems to have stabilized. So that's the good news. The current softness appears to be demand driven, primarily demand driven. We do remain optimistic as demand for data bandwidth and capacity will continue to grow. So over the longer term, we remain optimistic.

是的，約翰，與我們之前看到的一些放緩不同的是，之前的許多放緩是由定價驅動的，定價似乎已經穩定下來。這是個好消息。當前的疲軟似乎是由需求驅動的，主要是需求驅動的。我們確實保持樂觀，因為對數據帶寬和容量的需求將繼續增長。因此，從長遠來看，我們仍然保持樂觀。

But the downturn we're seeing right now is, let's say, more volume driven than price driven. At the same time, our broad portfolio of customer programs in multiple end markets means that the growth in other areas can offset much of the datacom softness we see. So we don't see it as a -- not necessarily a very significant issue, but it is more volume driven, I would say, than price driven.

但我們現在看到的經濟低迷，比方說，更多的是數量驅動而不是價格驅動。與此同時，我們在多個終端市場的廣泛客戶計劃組合意味著其他領域的增長可以抵消我們看到的大部分數據通信疲軟。所以我們不認為它是一個 - 不一定是一個非常重要的問題，但它更多的是數量驅動，我會說，而不是價格驅動。

Okay. Okay. And then if we move over to the guidance on the telecom side, I'm just curious, with all the puts and takes that we've heard from some of your customers and even some of the systems-level customers in the industry, how much -- as you're looking at, I don't know if it's possible, but can you sort of parse maybe what you're seeing from new program demand coming on, your revenue that maybe you wouldn't have had a couple of quarters ago versus sort of what the underlying demand is? And we're just trying to, I think, really to look more out into next calendar year to get a sense for maybe how the telecom business continues to perform.

好的。好的。然後，如果我們轉向電信方面的指導，我很好奇，我們從你們的一些客戶甚至行業中的一些系統級客戶那裡聽到的所有的意見和建議，如何很多——正如你所看到的，我不知道這是否可能，但你能否分析一下你從新的項目需求中看到的東西，你的收入，你可能不會有幾個幾個季度前的潛在需求是什麼？我認為，我們只是在努力真正地更多地關注下一個日曆年，以了解電信業務的持續表現。

So we're, I would say, quite happy with the progress we're making on the telecom side and the growth we're seeing there. We have -- in the past, we had a metric for new business, which we have -- we used to call revenue from new business historically, which referenced new customers, really since the beginning of 2014, which is really too long ago.

因此，我想說，我們對我們在電信方面取得的進展以及我們在那裡看到的增長感到非常滿意。我們 - 過去，我們有一個新業務的指標，我們曾經 - 我們過去常常將新業務的收入稱為歷史，它參考了新客戶，實際上是從 2014 年初開始的，這真的太久遠了。

So given that many of these programs are now entering their sixth year, we no longer talk about that metric. We're looking at to see if there's other measures that might make more sense but the new business that we see, we continue to increase both the dollars and as a percentage of total revenue, and that's both new business from new customers and new programs from existing customers.

因此，鑑於其中許多項目現已進入第六個年頭，我們不再討論該指標。我們正在研究是否有其他可能更有意義的措施，但我們看到的新業務，我們繼續增加美元和占總收入的百分比，這都是來自新客戶和新計劃的新業務來自現有客戶。

Most of the growth -- the majority of the growth would come from new business with existing customers. But the pipeline, I would say, is quite strong, quite robust. And as we've talked about in some of our prior meetings, we're going after, again, both new customers, but also new programs from existing customers and also looking to expand up the way vertically into the systems space with some of the customers who -- for whom we're providing component-level services today, and we're looking to expand that. And we've had some success in that regard. So we feel quite positive, I would say, about the pipeline and about the new business wins we've been seeing.

大部分增長——大部分增長將來自與現有客戶的新業務。但我會說，管道非常強大，非常強大。正如我們在之前的一些會議中所討論的那樣，我們將再次追求新客戶和現有客戶的新計劃，並且還希望通過一些方式垂直擴展到系統空間我們今天為他們提供組件級服務的客戶，我們正在尋求擴展它。我們在這方面取得了一些成功。因此，我想說，我們對管道和我們看到的新業務勝利感到非常積極。

Got it. And then maybe lastly, Csaba, I may have missed it, but did you give any of the 10% customer commentary in the quarter? I was hopping between a couple of calls, so I apologize if I missed that.

知道了。然後也許最後，Csaba，我可能錯過了，但是你在本季度給出了 10% 的客戶評論嗎？我在幾個電話之間跳來跳去，所以如果我錯過了，我深表歉意。

John, this is Csaba. Well, we are only providing 10% customers at the end of the year. So we haven't provided that, and we continue to stick to our process and provide that at our year-end.

約翰，這是喬巴。那麼，我們在年底只提供 10% 的客戶。所以我們沒有提供，我們將繼續堅持我們的流程並在年底提供。

And our next question comes from the line of Alex Henderson with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Alex Henderson。

I was hoping we could talk a little bit about the systems companies coming in, if you could give us some sense of where you are on bringing up Cisco, what the time line might be? When do you think that gets to kind of run rate revenues, and to what extent you think you're now at run rate relative to Infinera and where you are on any additional systems companies?

我希望我們能談談系統公司的情況，如果你能告訴我們你在什麼地方提出思科，時間線可能是什麼？你認為什麼時候會達到某種運行率收入，你認為你現在在多大程度上處於相對於 Infinera 的運行率以及你在任何其他系統公司的位置？

So thanks, Alex. So first of all, yes, we did announce the Cisco. When we announced the Cisco win, let's say, we said that we expected Cisco to be a 10% customer in FY '21. We think we're still on track for that. We remain quite optimistic about that and about the pace of the ramp. We think we should be ramped primarily, I would say, largely ramped at the end of the calendar year, we should be largely at the run rate by the end of the calendar year.

所以謝謝，亞歷克斯。所以首先，是的，我們確實宣布了思科。當我們宣布思科獲勝時，比方說，我們說我們預計思科將在 21 財年成為 10% 的客戶。我們認為我們仍在朝著這個方向前進。我們對此以及增長速度仍然非常樂觀。我們認為我們應該首先增加，我想說，主要是在日曆年年底增加，我們應該在日曆年結束時基本達到運行率。

Again, the, let's say, the 10% nature of the customer, we will talk at that at the end of the year, but we're quite happy that we feel we're on pace there and should be largely ramped towards the end of the year.

再一次，比方說，客戶的 10% 性質，我們將在年底討論這個問題，但我們很高興我們覺得我們在這方面取得了進展，並且應該在年底前大幅提升的一年。

Infinera, we did the Berlin transfer with Infinera, that's now behind us. And of course, in prior quarters, Infinera had talked about an inventory correction, which now seems to be in the past, and we're back to the normal run rate. So I would say we're at the run rate right now with Infinera.

Infinera，我們與 Infinera 進行了柏林轉移，現在已經過去了。當然，在前幾個季度，Infinera 曾談到過庫存修正，現在看來這已經成為過去，我們又回到了正常的運行率。所以我想說我們現在正處於 Infinera 的運行速度。

And then there's other system-level companies we're certainly targeting, but it's too early to talk about at this stage. We're very much targeting, not a huge number of customers, we don't need a huge number of customers. We just need a a small number of significant wins like we have been able to accomplish so far with both Infinera and Cisco. So we're very firmly targeting 1 or 2 more of those.

然後我們肯定會瞄准其他系統級公司，但現階段談論還為時過早。我們非常有針對性，而不是大量的客戶，我們不需要大量的客戶。我們只需要少量的重大勝利，就像我們迄今為止在 Infinera 和 Cisco 上所取得的成就一樣。所以我們非常堅定地瞄准其中的 1 或 2 個。

So looking at the Cisco Situation, is it fair to say a little bit in the fourth quarter, but not a material number and then ramping gradually in the first quarter and then hitting your kind of run rate as you exit the fourth quarter of fiscal year, but not a full quarter's worth? So the first full quarter would be then the third quarter. Is that the right process?

所以看看思科的情況，在第四季度可以說一點點，但不是一個實質性的數字，然後在第一季度逐漸增加，然後在你退出財政年度第四季度時達到你的那種運行率，但不是一個完整季度的價值？所以第一個完整的季度就是第三季度。這是正確的過程嗎？

Yes. I think that would be fair, yes.

是的。我認為那是公平的，是的。

Perfect. And then going back to the datacom side for a second, if I could. It's a little surprising because the datacom has been reasonably strong from most of the numbers that have been printed and I know you don't tie to any and specific, but obviously, we saw some pretty good numbers out of rest of the day at the same time that you guys are printing. And there's been other positive commentary around datacom.

完美的。如果可以的話，然後回到數據通信端一秒鐘。這有點令人驚訝，因為從大多數已打印的數字來看，數據通信相當強勁，我知道你不依賴於任何特定的數字，但顯然，我們在當天的其餘時間看到了一些相當不錯的數字你們打印的同時。並且還有其他關於數據通信的正面評論。

So is that a function, do you think of, maybe some share shift within your customer base to people may be in your customer base? Is it potentially associated with some of the 5G stuff taking a little longer to ramp? What do you think is the -- behind that softness as the driver?

那麼，您是否認為這是一種功能，也許您的客戶群中的一些份額轉移到您的客戶群中的人？它是否可能與某些 5G 產品需要更長時間才能升級有關？你認為作為司機的那種軟弱背後是什麼？

We think it's probably more program transition-related than share shift. We certainly haven't lost any customers or any programs. Sometimes, there might be some share shift going on, let's say, between our customers to, like you say, programs that we're not necessarily producing, but it's more likely to be program shifts within our customers where they're transitioning from one program to another and maybe ramping down an order program and haven't fully ramped up a newer program. So we...

我們認為這可能更多地與計劃過渡相關，而不是份額轉移。我們當然沒有失去任何客戶或任何程序。有時，我們的客戶之間可能會發生一些份額轉移，就像你說的，我們不一定製作的程序，但更有可能是我們客戶內部的程序轉移，他們正在從一個過渡程序到另一個程序，可能會減少一個訂單程序，但還沒有完全增加一個更新的程序。所以我們...

If I recall it correctly, you had said that, that was going to be the case in the third quarter calendar, but that you thought it would rebound in the fourth quarter. Now you're saying that you expect it to continue to be weak. Is that because of a delay in that ramp and therefore, we should anticipate a nonseasonal benefit as it ramps in the normally seasonally weak March quarter?

如果我沒記錯的話，你說過，第三季度的情況會是這樣，但你認為第四季度會反彈。現在你說你預計它會繼續疲軟。這是因為該增長的延遲，因此我們應該預期在通常季節性疲軟的 3 月季度增長時會出現非季節性收益？

Yes, hopefully. I mean, we're still optimistic about that. But that transition that we talked about previously is continuing there. We -- I think that's probably a fair way to look at it. It's -- the transition is lasting a little bit longer than we'd like and that our customer would like, but we still feel optimistic about it longer term.

是的，希望如此。我的意思是，我們對此仍然持樂觀態度。但我們之前談到的那種轉變仍在繼續。我們——我認為這可能是一種公平的看待方式。它是 - 過渡持續的時間比我們想要的和我們的客戶想要的要長一點，但我們仍然對其長期感到樂觀。

So any sense of what's driving that transition this differential? Then I'll see the floor.

那麼，是什麼推動了這種差異的轉變？然後我會看到地板。

Alex, this is Csaba. So what we have seen in the last, I would say, 2 quarters that you mentioned, we also had a transition of one of our particular customer. We thought it was going to be done largely this quarter that transition shift. We started to see the higher data rates of transceivers picking up actually. So that could be one of the drivers. While 100G still remains very strong, you started to see QSFP56 is coming up and double the transceivers starting to come in the pipeline.

Alex，這是 Csaba。所以我們在最後看到的，我想說，你提到的兩個季度，我們也有一個特定客戶的轉變。我們認為過渡轉變將在本季度主要完成。我們開始看到收發器實際拾取的數據速率更高。所以這可能是驅動因素之一。雖然 100G 仍然非常強大，但您開始看到 QSFP56 正在出現，並且雙倍的收發器開始進入管道。

So this might be a knock-on effect of bringing up the new products and then somewhat tapering off the 100G and at the same time, bringing up the higher data rate products. So that's the common denominator we are seeing across many customers rather than any particular share or shift.

因此，這可能是推出新產品然後逐漸減少 100G，同時推出更高數據速率產品的連鎖反應。所以這是我們在許多客戶中看到的共同點，而不是任何特定的份額或轉變。

(Operator Instructions) Our next question comes from the line of Dave Kang with B. Riley.

（操作員說明）我們的下一個問題來自 Dave Kang 和 B. Riley 的台詞。

This is Danny on for Dave. Going off the question about Cisco and Infinera, I was wondering if you could provide any additional color around the demand and around any ramp from Infinera in addition to Cisco?

這是戴夫的丹尼。離開關於思科和 Infinera 的問題，我想知道除了思科之外，您是否可以圍繞需求和 Infinera 的任何斜坡提供任何額外的顏色？

I'm sorry, we can't provide any outlook on demand from specific customers. We just -- we don't want to be speaking for our customers on these calls. So I'm afraid I can't provide that information.

很抱歉，我們無法根據特定客戶的需求提供任何展望。我們只是 - 我們不想在這些電話中代表我們的客戶。所以我恐怕無法提供該信息。

Okay. Got it. That's fair. And well, I guess, an additional question would be, are there any verticals that you're particularly excited about? You mentioned the autos and telecom earlier. What's giving you the confidence in these 2 sectors? And how should we think about that going forward?

好的。知道了。這還算公平。好吧，我想還有一個問題是，有沒有讓您特別感興趣的垂直領域？你之前提到了汽車和電信。是什麼讓您對這兩個領域充滿信心？我們應該如何考慮未來的發展？

Yes. I think there's a few areas. So there's -- you mentioned automotive. For us, traditional automotive came back quite strong actually in the quarter a little bit unexpectedly. But maybe for us, more exciting is the new automotive, especially LIDAR. We've had some good solid wins in that space. And that area is growing for us, it's a really good fit for us.

是的。我認為有幾個方面。所以有 - 你提到了汽車。對我們來說，傳統汽車實際上在本季度恢復強勁，有點出乎意料。但也許對我們來說，更令人興奮的是新汽車，尤其是激光雷達。我們在那個領域取得了一些不錯的穩固勝利。這個領域對我們來說正在成長，它非常適合我們。

In addition, the industrial laser business, even though that whole sector is somewhat down, it's very much under-penetrated from an outsourcing perspective. So we feel very positive about that sector longer term.

此外，工業激光業務，儘管整個行業有所下滑，但從外包的角度來看，它的滲透率還很低。因此，從長遠來看，我們對該行業感到非常樂觀。

Third would be the system business and vertically integrating, moving up the value chain for our customers. We've had some really good success there. And we'll be very selective as we pursue that business. We're not just chasing revenue. We're chasing high-quality revenue from high-quality customers. And so far, we've been very successful, I would say, quite fortunate in that regard.

第三是系統業務和垂直整合，為我們的客戶提升價值鏈。我們在那裡取得了一些非常好的成功。我們在追求這項業務時非常有選擇性。我們不只是追逐收入。我們正在從高質量的客戶那裡追逐高質量的收入。到目前為止，我們非常成功，我想說，在這方面非常幸運。

And then the fourth area is that, if you like, the broader area of precision sensors generally focused on some of the markets we serve traditionally, but also medical and some other markets.

然後是第四個領域，如果你願意的話，更廣泛的精密傳感器領域通常集中在我們傳統上服務的一些市場，但也包括醫療和其他一些市場。

So we feel we have a really good, let's say, mix of segments and sectors that have enough in common for us to be very effective for us and do a very, very good job for our customers, but also that provide good diversification for us. So we're quite optimistic, I would say, about our longer-term growth prospects. I think it's shown through -- if you look at our growth over the last quarters it's been quite robust in the face of of several headwinds like COVID and Huawei and whatnot. So we remain quite optimistic.

所以我們覺得我們有一個非常好的，比方說，細分市場和行業的組合，它們有足夠的共同點讓我們對我們非常有效，為我們的客戶做得非常非常好，同時也為我們提供了良好的多元化.因此，我想說，我們對我們的長期增長前景非常樂觀。我認為這已經體現出來了——如果你看看我們在過去幾個季度的增長，它在面對 COVID 和華為等幾個不利因素時相當強勁。所以我們仍然非常樂觀。

And we have a follow-up question from the line of Alex Henderson with Needham.

我們有來自 Alex Henderson 和 Needham 的後續問題。

Okay. So I wanted to talk a little bit about the industrial laser business. The primary -- one of your primary customers obviously reported this morning, and they had a very steep decline in the trailing period, but offered sequential flat numbers, saying that they believe that, that business has finally bottomed.

好的。所以我想談談工業激光業務。主要 - 你的主要客戶之一顯然今天早上報告，他們在尾隨期間出現了非常急劇的下降，但提供了連續持平的數字，表示他們相信，該業務終於觸底。

And I know that you've been picking up some share as well. So trying to understand how do I look at the industrial laser business, which normally is seasonally stronger in the first half of the year next year as well. So is it -- is there something beyond the current -- the obvious customer that is also seeing some weakness to cause it a conservative guide sequentially into the upcoming quarter?

而且我知道你也一直在獲得一些份額。因此，試圖了解我如何看待工業激光業務，該業務通常在明年上半年也會出現季節性增長。那麼是不是 - 除了當前之外還有什麼 - 明顯的客戶也看到了一些弱點導致它在即將到來的季度中依次成為保守的指南？

No. I think it's more to do with -- that's industry generally. We're -- currently we don't produce all of the products, if you like, for all of the customers. So we're really at the whim of the demand in the marketplace for the customers' products for the products we do reduce.

不，我認為這更多地與 - 這就是整個行業有關。我們 - 如果您願意，我們目前不會為所有客戶生產所有產品。因此，我們確實在市場上對客戶產品對我們減少的產品的需求一時興起。

The strategy is more around deeper outsourcing penetration. Those companies, we believe, who are not yet that heavily outsourced, will need to outsource more and more. That's where we really plan to capitalize.

該戰略更多地圍繞更深入的外包滲透。我們認為，那些尚未大量外包的公司將需要越來越多的外包。這就是我們真正計劃利用的地方。

So there's kind of a short-term version of the answer, Alex, and the long-term version. The short term, we're at the whim of what happens in that marketplace. But longer term, we feel very positive about the industrial laser, if you like, segment for us, generally, it's a really good fit for us. So far, any of the customers we have in that space, we've done a very, very good job for them, and we think we can continue to expand the outsourcing. We can expand our relationships with those companies as they're increasing the outsource.

所以有一種短期版本的答案，亞歷克斯，和長期版本。短期內，我們隨心所欲地了解市場上發生的事情。但從長遠來看，我們對工業激光器感到非常積極，如果你願意，對我們來說，一般來說，它非常適合我們。到目前為止，我們在該領域擁有的任何客戶，我們都為他們做了非常非常好的工作，我們認為我們可以繼續擴大外包。我們可以擴大與這些公司的關係，因為他們正在增加外包。

We have another follow-up question from the line of John Marchetti with Stifel.

Stifel 的 John Marchetti 提出了另一個後續問題。

Seamus, I know you don't have any little direct exposure to Huawei. But with some of the key customers, certainly indicating that, that revenue stream is continuing to weaken as we look out over the next several quarters. How do you think about that market for you or that share that, that represents?

Seamus，我知道你對華為沒有任何直接接觸。但是對於一些主要客戶來說，這肯定表明，在我們展望未來幾個季度時，收入流將繼續減弱。您如何看待您的市場或代表的份額？

Particularly, as we look out into next calendar year, how quickly maybe can some of that get reallocated? Particularly, with your production lines, does it require a tremendous amount of rework to go from Huawei, say, to a different systems-level vendor? And just trying to think of maybe how we think about that as a headwind as we're looking more into calendar '21?

特別是，當我們展望下一個日曆年時，其中一些可以多快重新分配？特別是，對於您的生產線，是否需要大量返工才能從華為轉移到不同的系統級供應商？在我們更多地關注 21 年日曆時，只是想想想我們如何將其視為逆風？

Thanks, John. Yes. A couple of parts to the answer. First of all, the impact towards last quarter, let's say, the quarter just ended, was, I would say, negligible. If you can appreciate, the sanctions and everything else came very late in the quarter. Therefore, the quarter was pretty much set, and we were able to pull in and ship most of what was needed by -- I think, the 14th of September was the date there. So there was a very minimal impact in Q1.

謝謝，約翰。是的。答案的幾個部分。首先，我想說，對上個季度的影響，比方說，剛剛結束的那個季度，可以忽略不計。如果你能理解的話，制裁和其他一切都在本季度來得很晚。因此，該季度幾乎已經確定，我們能夠在 - 我認為 9 月 14 日是那裡的日期之前引入並運送大部分所需的東西。因此，第一季度的影響非常小。

Our Q2 guidance incorporates a headwind of about $25 million to $30 million from customers impacted by the Huawei sanctions. So that's incorporated into our Q2 guidance. And in other words, not for the sanctions, we'd be guiding $25 million to $30 million above our outlook today. So it's not insignificant impact, it's a sizable impact. But we've been able to overcome that headwind and still guide up.

我們的第二季度指引包含了受華為製裁影響的客戶約 2500 萬至 3000 萬美元的逆風。因此，這已納入我們的第二季度指南。換句話說，不是因為製裁，我們將比今天的預期高出 2500 萬至 3000 萬美元。所以這不是微不足道的影響，而是相當大的影響。但我們已經能夠克服逆風並且仍然向上引導。

As regards how quickly our customers can convert over and how quickly we can convert over production lines, the converting of production lines is -- I don't want to minimize the impact, but it's quite small. The pacing item, we believe, will be more to do with those other non-Huawei customers getting the qualifications done in a timely manner. They have to qualify the products. And that can take time, some time.

至於我們的客戶可以多快地轉換以及我們可以多快地轉換生產線，生產線的轉換是——我不想把影響降到最低，但它很小。我們認為，節奏項目將更多地與其他非華為客戶及時完成資格有關。他們必須對產品進行鑑定。這可能需要時間，一些時間。

So we don't anticipate any great delays on our part and, in some cases, our customers have been adding capacity to produce these products. And I think our customers remain quite optimistic about the products they have, they've some really excellent products. So there will be, I would say, a transition over the next couple of quarters as our customers transition over to non-Huawei customers. And we're ready to support them. We'll do whatever it takes to make sure they're successful there. But I don't think there's any hugely gating item or pacing item from our side. It's more to do with the end customer just qualifying the products. Does that make sense, John?

因此，我們預計我們不會有任何重大延誤，而且在某些情況下，我們的客戶一直在增加生產這些產品的能力。而且我認為我們的客戶對他們擁有的產品仍然非常樂觀，他們有一些非常優秀的產品。因此，我想說，隨著我們的客戶過渡到非華為客戶，未來幾個季度將會發生過渡。我們已準備好支持他們。我們將盡一切努力確保他們在那裡取得成功。但我認為我們這邊沒有任何巨大的門控項目或節奏項目。這更多地與最終客戶有關，只是使產品合格。這有意義嗎，約翰？

Absolutely.

絕對地。

Operator, if you're still on the line.

話務員，如果你還在的話。

And I'm sure we have another follow-up question from the line of Alex Henderson with Needham.

我敢肯定，我們還有另一個來自 Alex Henderson 和 Needham 的後續問題。

So 2 questions, both on kind of progress front. One is what's going on with your Israel prototyping facility? And second one is, could you give us an update on where you are on the production expansion and plans?

所以有 2 個問題，都是關於進展方面的問題。一是您的以色列原型製作設施發生了什麼事？第二個是，您能否向我們介紹一下您在生產擴展和計劃方面的最新進展？

Sure. So first of all, in Israel, we have a lot of, I would say, very exciting activity going on in Israel right now. With a high level of -- with the facility up and running, we have a high level of interest from customers and that's both existing Israeli-based customers of ours, but also a lot of interest from new customers, new to Fabrinet customers. We've won some business. It's not huge in terms of revenue, but it's hugely important in terms of bringing on new business and new customers.

當然。所以首先，在以色列，我想說的是，以色列現在正在進行很多非常令人興奮的活動。隨著設施的啟動和運行，我們對客戶產生了很高的興趣，這既是我們現有的以色列客戶，也有很多新客戶對 Fabrinet 客戶的興趣。我們贏得了一些生意。它的收入並不大，但在帶來新業務和新客戶方面非常重要。

Of course, Alex, as you know, driving revenue is not necessarily the focus of a new product introduction facility. The focus of NPI is more on winning new programs and new customer relationships with quick turn and prototyping and other late-design stage services as the enabler, if you like, of growth. And in that context, yes, the goal then, of course, is still very much, ultimately, to drive volume manufacturing to Thailand. I would say in that context, we're very happy with the progress there and really have a lot of activity and a lot of interest and have won some business there.

當然，亞歷克斯，正如你所知，推動收入不一定是新產品引進設施的重點。 NPI 的重點更多地是通過快速轉向和原型製作以及其他後期設計階段服務贏得新項目和新客戶關係，如果你願意的話，可以作為增長的推動者。在這種情況下，是的，當時的目標當然仍然是最終將批量製造推向泰國。我想說的是，在這種情況下，我們對那裡的進展感到非常高興，並且確實有很多活動和很多興趣，並在那裡贏得了一些業務。

The second part of your question to do with the...

你問題的第二部分與......

Just before we get off of that, those new customers to Fabrinet altogether?

就在我們開始之前，Fabrinet 的那些新客戶一共？

Some are, yes. Some are new customers to Fabrinet, and they're in the, I would say, in the communication space, but also in other noncommunications areas, such as new automotive, medical, defense and aerospace and other segments that are, I would say, new and exciting for Fabrinet. So yes, plenty of opportunity there. It really is a very, very busy hot bed of technology and activity.

有些是，是的。有些是 Fabrinet 的新客戶，我想說，他們在通信領域，但也在其他非通信領域，例如新的汽車、醫療、國防和航空航天以及我想說的其他領域，對於 Fabrinet 來說是新的和令人興奮的。所以是的，那裡有很多機會。它確實是一個非常非常繁忙的技術和活動溫床。

Perfect. And on the capacity expansion progress in Thailand?

完美的。以及泰國產能擴張的進展情況？

Yes. So obviously, we're very happy, I would say, and excited to have a solution for increasing capacity at our main campus in Pinehurst from the customers who want to expand there. We've started the expansion in the fourth quarter, and it will take several quarters until it's completed because unlike, let's say, a new building, in a sense, is more straightforward because you just build the building.

是的。很明顯，我想說，我們非常高興，並且很高興能從想要在那裡擴展的客戶那裡獲得一個解決方案，以增加我們位於 Pinehurst 的主校區的容量。我們已經在第四季度開始擴建，需要幾個季度才能完成，因為與新建築不同，從某種意義上說，它更直接，因為你只需建造這座建築。

Whereas with a move like this on an already busy campus, there's a lot of moving around that has to happen before it comes into full effect. But we're -- I would say, the project is underway. And at the same time, we continue to attract new customers to the Chonburi campus. And we're seeing much increased production volumes there and evaluating what our next expansion steps might be.

而在一個已經很繁忙的校園裡進行這樣的移動，在它完全生效之前必須進行大量的移動。但我們——我會說，該項目正在進行中。與此同時，我們繼續為春武里校區吸引新客戶。我們看到那裡的產量大大增加，並評估我們下一步的擴張步驟可能是什麼。

And I'm showing no further questions. I will now turn the call back over to CEO, Seamus Grady, for any further remarks.

我沒有再提出任何問題。我現在將把電話轉回給首席執行官 Seamus Grady，以徵求任何進一步的評論。

Thank you, operator. Thank you all for joining our call today. We're pleased to have exceeded our guidance and reported record revenue and net income in the first quarter. Our strategy is working, and we look forward to sharing more success with you as we look ahead as well as meeting with some of you virtually at the Needham conference in November and the MKM conference in December. Thank you, and goodbye.

謝謝你，運營商。感謝大家今天加入我們的電話會議。我們很高興在第一季度超出了我們的指導並報告了創紀錄的收入和淨收入。我們的戰略正在奏效，我們期待與您分享更多成功，因為我們展望未來，並在 11 月的 Needham 會議和 12 月的 MKM 會議上與你們中的一些人進行虛擬會面。謝謝，再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating, and you may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。