Fabrinet (FN) 2020 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Fabrinet's Financial Results Conference Call for the First Quarter of Fiscal Year 2020. (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the call over to your host, Garo Toomajanian, Investor Relations. Sir, you may begin.

女士們先生們，美好的一天，歡迎來到 Fabrinet 2020 財年第一季度的財務業績電話會議。（操作員說明）提醒一下，今天的通話正在錄音中。我現在想把電話轉給你的主持人，投資者關係部的 Garo Toomajanian。先生，您可以開始了。

Thank you, operator, and good afternoon, everyone. Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the first quarter of fiscal year 2020, which ended September 27, 2019. With me on the call today are Seamus Grady, Chief Executive Officer; and TS Ng, Chief Financial Officer.

謝謝接線員，大家下午好。感謝您參加今天的電話會議，討論 Fabrinet 截至 2019 年 9 月 27 日的 2020 財年第一季度的財務和運營業績。今天和我一起打電話的是首席執行官 Seamus Grady；和首席財務官 TS Ng。

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.

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.

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。

These statements reflect our opinion 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, 2019.

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 2019 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 TS, followed by time for questions. I would now like to turn the call over to Fabrinet's CEO, Seamus Grady. Seamus?

我們將以 Seamus 和 TS 的評論開始通話，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。西默斯？

Thank you, Garo, and good afternoon, everyone. We delivered a strong performance in the first quarter with revenue and earnings that were above our guidance. Demand trends appear to be stabilizing in most of the end markets we serve, and we're optimistic that we are positioned to deliver strong results in the second quarter.

謝謝你，Garo，大家下午好。我們在第一季度表現強勁，收入和收益高於我們的指導。我們服務的大多數終端市場的需求趨勢似乎都在穩定，我們樂觀地認為我們能夠在第二季度取得強勁的業績。

Revenue in the first quarter was $399 million, a slight decrease from the record fourth quarter as expected with a 6% increase from a year ago. Non-GAAP net income was $0.86 per share, exceeding the high end of guidance as gross margins improved to 12% in the quarter.

第一季度的收入為 3.99 億美元，與預期的創紀錄的第四季度相比略有下降，同比增長 6%。非 GAAP 淨收入為每股 0.86 美元，超過指引的上限，因為本季度毛利率提高至 12%。

Looking at our business by end markets. Optical communications revenue of $302 million was up about $2 million from the fourth quarter and represented 76% of total revenue. Within optical communications, telecom revenue of $230 million increased 7% from the fourth quarter and represented 76% of optical revenue. This growth is particularly notable considering we had expected telecom revenue to be flat at best. Further, we expect this momentum to continue in Q2.

從終端市場來看我們的業務。光通信收入為 3.02 億美元，比第四季度增長約 200 萬美元，佔總收入的 76%。在光通信領域，電信收入為 2.3 億美元，比第四季度增長 7%，佔光通信收入的 76%。考慮到我們預計電信收入充其量只會持平，這一增長尤為顯著。此外，我們預計這種勢頭將在第二季度繼續。

Datacom revenue was $73 million in the quarter, an expected decrease from Q4, of 15%. Datacom represented 24% of optical communications revenue. We believe this decline is primarily the result of broader industry trends and not due to execution or competitive issues. In fact, based on anticipated near-term demand, we believe datacom trends could be nearing the bottom and we expect datacom revenue to be roughly flat in Q2.

本季度數據通信收入為 7300 萬美元，預計比第四季度下降 15%。數據通信佔光通信收入的 24%。我們認為這種下降主要是更廣泛的行業趨勢的結果，而不是由於執行或競爭問題。事實上，根據預期的近期需求，我們認為數據通信趨勢可能已接近底部，我們預計第二季度數據通信收入將大致持平。

By technology, silicon photonics-based optical communications revenue decreased from the fourth quarter to $77 million and represented 25% of optical communications revenue. Revenue from QSFP28 and QSFP56 transceivers was $45 million, down slightly from fourth quarter. By data rate, 100-gig programs continued to represent nearly half of optical communications' revenue at $147 million. And products rated at speeds of 400 gig and above were up strongly from the fourth quarter of $38 million or 13% of optical communications revenue.

按技術劃分，基於矽光子學的光通信收入較第四季度下降至 7700 萬美元，佔光通信收入的 25%。QSFP28 和 QSFP56 收發器的收入為 4500 萬美元，較第四季度略有下降。按數據速率計算，100 兆節目繼續佔光通信收入的近一半，達到 1.47 億美元。額定速度為 400 gig 及以上的產品較第四季度強勁增長，達到 3800 萬美元，佔光通信收入的 13%。

Looking at our nonoptical communications business. Revenue moderated sequentially as expected to $97 million from $105 million in Q4. As anticipated, revenue from industrial lasers declined from the fourth quarter and was $41 million compared to $53 million in Q4. These same demand trends seem to be persisting, so we anticipate industrial laser revenue to be roughly flat in Q2.

看看我們的非光通信業務。正如預期的那樣，收入從第四季度的 1.05 億美元環比下降至 9700 萬美元。正如預期的那樣，工業激光器的收入從第四季度開始下降，為 4100 萬美元，而第四季度為 5300 萬美元。這些相同的需求趨勢似乎會持續存在，因此我們預計第二季度工業激光器收入將大致持平。

Longer term, we remain optimistic about our potential to further penetrate the industrial laser market as more manufacturers inevitably turn to outsourcing to better compete in this global market that is, in fact, larger than the optical communications market. Automotive and sensor revenue were both stable at $24 million and $3.5 million, respectively.

從長遠來看，我們對我們進一步滲透工業激光市場的潛力保持樂觀，因為越來越多的製造商不可避免地轉向外包，以更好地在這個實際上比光通信市場更大的全球市場中競爭。汽車和傳感器收入分別穩定在 2400 萬美元和 350 萬美元。

Finally, revenue generated from other nonoptical applications grew 15% sequentially to $28 million, mainly from Fabrinet West. Fabrinet West has been a great success for winning business for our offshore volume manufacturing sites. We have seen numerous programs migrate from early prototyping in Fabrinet West to volume production in Thailand. At the same time, Fabrinet West has been an enabler for us to win business in new markets and with new customers that might have otherwise gone to competitors.

最後，來自其他非光學應用的收入環比增長 15% 至 2800 萬美元，主要來自 Fabrinet West。Fabrinet West 在為我們的離岸批量生產基地贏得業務方面取得了巨大成功。我們已經看到許多項目從 Fabrinet West 的早期原型設計遷移到泰國的批量生產。與此同時，Fabrinet West 一直是我們在新市場和新客戶中贏得業務的推動者，否則這些客戶可能會流向競爭對手。

As such, we have been focused on establishing a similar model to Fabrinet West in Israel. We already have a number of customers there, and we believe we have the opportunity to grow our business with these customers as well as attract new ones. We have signed a lease for a building in [Yup Nai] which is a former semiconductor manufacturing facility. It is already equipped with most of the infrastructure we need for a new product introduction center. We are currently in the process of setting up SMT lines advance packaging and a failure analysis lab similar to what we have to support NPI in our Bangkok facilities. We have hired a General Manager for Fabrinet Israel and we are targeting to be up and running early next year.

因此，我們一直專注於建立與以色列 Fabrinet West 類似的模式。我們在那裡已經有很多客戶，我們相信我們有機會與這些客戶發展業務並吸引新客戶。我們已經在 [Yup Nai] 租用了一座建築物，該建築物以前是半導體製造廠。它已經配備了我們新產品介紹中心所需的大部分基礎設施。我們目前正在建立 SMT 生產線先進包裝和故障分析實驗室，類似於我們在曼谷設施中支持 NPI 的實驗室。我們已經為 Fabrinet Israel 聘請了一位總經理，我們的目標是在明年初啟動並運行。

In summary, we believe we are off to a good start to the fiscal year with revenue and earnings that meet our guidance ranges and return to gross margins that were within our target range. We're optimistic that our telecom strength will continue and the datacom trends appear to be bottoming.

總而言之，我們相信我們本財年開局良好，收入和收益符合我們的指導範圍，毛利率也回到了我們的目標範圍內。我們對我們的電信實力將繼續保持樂觀，並且數據通信趨勢似乎正在觸底。

In addition, we're excited to have achieved important milestones toward establishing a second new product introduction facility at Fabrinet Israel. Combined with our continued leadership as a contract manufacturer for the most complex products, we are very excited about our future.

此外，我們很高興在 Fabrinet Israel 建立第二個新產品引進設施方面取得了重要的里程碑。結合我們作為最複雜產品的合同製造商的持續領導地位，我們對我們的未來感到非常興奮。

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

現在讓我把電話轉給 TS，討論我們第一季度業績和前景的細節。TS？

Thank you, Seamus, and good afternoon, everyone. I will provide you with more details on our performance by end market and our financial results for Q1 as well as our guidance for Q2 for fiscal year 2020.

謝謝 Seamus，大家下午好。我將為您提供有關我們按終端市場劃分的業績和我們第一季度的財務業績以及我們對 2020 財年第二季度的指導的更多詳細信息。

Total revenue in the first quarter of fiscal year 2020 was $399.3 million and above the upper end of our guidance range. Non-GAAP net income was $0.86 per share and was also above our guidance range even after a foreign exchange headwind of $1.9 million and the mark-to-market loss on interest rate swap contracts of $1.7 million. These losses accounted for approximately $0.09 per share.

2020 財年第一季度的總收入為 3.993 億美元，高於我們指導範圍的上限。非 GAAP 淨收入為每股 0.86 美元，即使在 190 萬美元的外匯逆風和 170 萬美元的利率掉期合約按市值計算的損失之後，也高於我們的指導範圍。這些損失約佔每股 0.09 美元。

Now turning to the details of our P&L. 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. We were pleased to see non-GAAP gross margin in the first quarter improve to 12%, a 20 basis point increase from the fourth quarter as efficiency more than offset the impact of merit increases.

現在轉向我們損益表的細節。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。我們很高興看到第一季度的非 GAAP 毛利率提高到 12%，比第四季度提高了 20 個基點，因為效率大大抵消了業績增長的影響。

Non-GAAP operating expense was $11.6 million in the first quarter. As a result, non-GAAP operating income was $36.2 million and non-GAAP operating margin was 9.1%, flat with the fourth quarter. Taxes in the quarter were $2.2 million, and our normalized effective tax rate was less than 5%. We expect our effective tax rate to be 5% to 6% for the full year.

第一季度非 GAAP 運營費用為 1160 萬美元。因此，非 GAAP 營業收入為 3620 萬美元，非 GAAP 營業利潤率為 9.1%，與第四季度持平。本季度的稅收為 220 萬美元，我們的標準化有效稅率低於 5%。我們預計全年的有效稅率為 5% 至 6%。

Non-GAAP net income was above our guidance range at $32.2 million in the first quarter or $0.86 per diluted share as I indicated earlier. On a GAAP basis, which includes share-based compensation expenses and amortizations of debt issuing costs, net income for the first quarter was $25.9 million or $0.69 per diluted share, also above the high end of our guidance.

第一季度非 GAAP 淨收入為 3220 萬美元，高於我們的指導範圍，即我之前指出的每股攤薄收益 0.86 美元。根據 GAAP 基礎，包括基於股份的補償費用和債務發行成本攤銷，第一季度淨收入為 2590 萬美元或每股攤薄收益 0.69 美元，也高於我們指導的上限。

Turning to the balance sheet and cash flow statement. At the end of the first quarter, cash, restricted cash and investments were $436.4 million compared to $444.7 million at the end of the fourth quarter. Operating cash flow in the quarter was $2.6 million and with CapEx of $6.3 million, free cash flow was an outflow of $3.7 million in the first quarter. During the quarter, our working capital increased to higher than normal level in support of major new program transfer. This will begin to self-correct in the second quarter as we start to consume the transfer inventory and collect receivables.

轉向資產負債表和現金流量表。第一季度末，現金、受限現金和投資為 4.364 億美元，而第四季度末為 4.447 億美元。本季度的運營現金流為 260 萬美元，資本支出為 630 萬美元，第一季度自由現金流流出 370 萬美元。本季度，我們的營運資金增加到高於正常水平，以支持重大新項目的轉移。隨著我們開始消耗轉移庫存並收取應收賬款，這將在第二季度開始自我糾正。

We did not repurchase any shares during the first quarter. As such, $62.2 million remain in our share repurchase program and we will continue to evaluate market condition to opportunistically repurchase shares when possible.

我們在第一季度沒有回購任何股票。因此，我們的股票回購計劃中仍有 6220 萬美元，我們將繼續評估市場狀況，以便在可能的情況下適時回購股票。

I would now like to turn to our guidance for the second quarter of fiscal year 2020. As Seamus described, we expect a strong second quarter and anticipate that revenue will be between $408 million and $416 million.

我現在想談談我們對 2020 財年第二季度的指導。正如 Seamus 所描述的，我們預計第二季度將表現強勁，預計收入將在 4.08 億美元至 4.16 億美元之間。

From a margin perspective, we are optimistic that we will see efficiencies continue to drive incremental improvements in non-GAAP gross margin within our target range of 12% to 12.5%. From an EPS perspective, we anticipate non-GAAP net income per share in the second quarter to be in the range of $0.91 to $0.94 and GAAP net income per share of $0.74 to $0.77 based on approximately $37.7 million fully diluted shares outstanding.

從利潤率的角度來看，我們樂觀地認為，我們將看到效率繼續推動非 GAAP 毛利率在我們 12% 至 12.5% 的目標範圍內逐步改善。從每股收益的角度來看，我們預計第二季度的非 GAAP 每股淨收入將在 0.91 美元至 0.94 美元之間，根據約 3770 萬美元的完全稀釋流通股計算，每股 GAAP 淨收入將在 0.74 美元至 0.77 美元之間。

In conclusion, we are excited with our strong performance in the quarter. We remain very positive about our long-term prospects for continued leadership in the marketplace.

總之，我們對本季度的強勁表現感到興奮。我們對我們在市場上繼續保持領導地位的長期前景仍然非常樂觀。

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

接線員，我們現在想打開問題電話。

(Operator Instructions) Our first question comes from the line of John Marchetti of Stifel.

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

A quick one, first off, Seamus. I was curious if in this quarter, there was any revenue associated with that, that transfer program coming in. And if there is some of that in the guidance for next quarter as well.

一個快速的，首先，Seamus。我很好奇在這個季度，是否有任何相關的收入，即轉移計劃的到來。如果下一季度的指導中也有一些這樣的話。

Yes. We had some revenue from the transfer program. As you may notice from our cash, we did burn cash in the quarter. And in large part, that was due to inventory that we purchased in the early part of the quarter and then our shipments as you can appreciate with a big transfer like that, we did have some revenue, but it was pretty much back-end loaded in the quarter. So we have some receivables that fell into this quarter.

是的。我們從轉移計劃中獲得了一些收入。正如您可能從我們的現金中註意到的那樣，我們確實在本季度消耗了現金。這在很大程度上是由於我們在本季度初購買的庫存，然後是我們的出貨量，你可以通過這樣的大轉移來欣賞，我們確實有一些收入，但它幾乎是後端負載在本季度。所以我們有一些應收賬款落入本季度。

So yes, we did have some revenue in the quarter and we continue in our guidance for this quarter as well. And we think it will be probably largely ramped, I think, by the end of this quarter. We're a little bit ahead of schedule. I know previously we mentioned we thought it will be out into Q3. We think it will be largely ramped by the end of this quarter.

所以是的，我們在本季度確實有一些收入，我們也將繼續為本季度提供指導。我認為，到本季度末，我們認為它可能會大幅增加。我們比計劃提前了一點。我知道之前我們提到過我們認為它會進入第三季度。我們認為到本季度末將大幅增加。

So just to be clear, by the end of this quarter, you expect that whatever you're shipping for that program will be actually coming out of your production and not just out of inventory that you purchased?

所以要明確一點，到本季度末，您希望您為該計劃運送的任何東西實際上都來自您的生產，而不僅僅是您購買的庫存？

Yes. We didn't purchase. The only inventory we purchased was raw material. We didn't purchase any finished goods or semifinished goods or anything like that. So everything that was in our revenue last quarter was product we produced, that will stay in this quarter. So it'll be -- hopefully little bit more of it this quarter and we expect to be fully ramped up this quarter.

是的。我們沒有購買。我們購買的唯一存貨是原材料。我們沒有購買任何成品或半成品或類似的東西。因此，上個季度我們收入中的所有內容都是我們生產的產品，這些產品將保留在本季度。所以它會 - 希望本季度更多一點，我們預計本季度將全面提升。

And then if I can switch gears. You had a pretty significant sequential increase in the 400 and above speed check there. I'm wondering if you can talk about if that was with existing customers and is more demand-related, if there is some new customer activity mixed in there. Just any color you can give us behind sort of that ramp that's fairly steep in that 400 and above.

然後如果我可以換檔。您在那裡的 400 及以上速度檢查中有相當顯著的連續增加。我想知道你是否可以談談這是否與現有客戶有關並且與需求更相關，如果那裡混合了一些新的客戶活動。您可以在 400 及以上的相當陡峭的斜坡後面給我們提供任何顏色。

It's a combination, John, of both existing and new customers. I would say the majority of that revenue came from existing customers. So as you can appreciate, any volume from new customers will be small in nature, but the majority of the revenue increase on the 400 gig came from existing customers.

約翰，這是現有客戶和新客戶的結合。我會說大部分收入來自現有客戶。因此，正如您所理解的那樣，來自新客戶的任何數量本質上都是很小的，但 400 演出的大部分收入增長來自現有客戶。

And then lastly if I can, just curious about your comments about the datacom business getting a little bit better. What sort of visibility do you have there? And I guess what's changed over the last quarter or so to make you feel a little bit better about that?

最後，如果可以的話，我只是好奇你對數據通信業務變得更好的評論。你在那裡有什麼樣的能見度？我想在上個季度左右發生了什麼變化讓你感覺好一點？

No problem, John. I think we feel like both datacom business, we think has maybe bottomed out/flattened. It was down last quarter as we said there. As expected, our datacom revenue was down. We think it's kind of bottoming out this quarter. We think last quarter was probably a low point and we think it's flattening. So we're not exuberant, I would say. We're not guiding any huge increases on datacom, but we do feel, I think our telecom business, we think is quite strong and will be up. But our datacom business, we think, is still a little bit flat, I would say. And that's really based on the forecast in orders we have from our customers. We have about typically 13 weeks rolling visibility. So we have some pretty good visibility, and that's -- so that's based on the visibility we get from our customers, John.

沒問題，約翰。我認為我們覺得數據通信業務可能已經觸底/趨於平緩。正如我們在那裡所說的那樣，上個季度有所下降。正如預期的那樣，我們的數據通信收入下降了。我們認為它在本季度觸底反彈。我們認為上個季度可能是一個低點，我們認為它正在趨於平緩。所以我們並不旺盛，我會說。我們沒有指導數據通信的任何大幅增長，但我們確實覺得，我認為我們的電信業務非常強勁，而且會上升。但我們認為，我們的數據通信業務仍然有點平淡，我想說。這實際上是基於我們對客戶訂單的預測。我們通常有大約 13 週的滾動可見性。所以我們有一些非常好的知名度，那是 - 所以這是基於我們從客戶那裡獲得的知名度，約翰。

Our next question comes from the line of Alex Henderson of Needham.

我們的下一個問題來自 Needham 的 Alex Henderson。

You talked a little bit about this program that you're moving over from Berlin. Obviously, you've given guidance here for the full year, fiscal year and in '20 that this could be 10% plus of your revenues. It doesn't sound like in the first half, it's anywhere near that. Can you talk a little bit about the cadence of when you think it can achieve or exceed that full year mark? But I would assume that at some point it has to cross over and be more than 10% to get to that level for the full year.

你談到了你從柏林搬來的這個項目。顯然，你在這裡給出了全年、財政年度和 20 年的指導，這可能是你收入的 10% 以上。聽起來不像是在上半場，但差不多。你能談談你認為什麼時候可以達到或超過全年目標的節奏嗎？但我認為在某個時候它必須跨越並超過 10% 才能達到全年的水平。

Yes, Alex. The 10% comment that we've made previously was in relation to Infinera as a customer in total, which will be the combination of the previous, if you like, existing Infinera business that we already have plus the transferred business from Berlin. So the 10% comment was not related to the Berlin business alone, the Berlin business is an addition to the existing Infinera business, so that may explain the disconnect there. I'm not sure if that's helpful.

是的，亞歷克斯。我們之前所做的 10% 的評論與作為客戶的 Infinera 有關，如果你願意的話，這將是我們已經擁有的現有 Infinera 業務加上從柏林轉移的業務的組合。所以 10% 的評論與柏林業務無關，柏林業務是對現有 Infinera 業務的補充，因此這可以解釋那裡的脫節。我不確定這是否有幫助。

Well, so I am assuming that it still isn't over 10% at this point in time or anywhere close to it. So the comment still stands. When do you think that, that program gets to a point where it's driving the type of revenues that would put them at over 10% as a customer?

好吧，所以我假設在這個時間點或接近它的任何地方它仍然不超過 10%。所以評論仍然有效。您認為該計劃何時會達到推動收入類型的程度，使他們作為客戶的收入超過 10%？

Well, as you can see that we just reported that 10% customers at the end of the fiscal year. We think we'll be ramped on the transfer business by the end of this quarter. That should put us at that run rate, we think, for the full year.

好吧，正如您所看到的，我們剛剛在財政年度末報告了 10% 的客戶。我們認為我們將在本季度末增加轉會業務。我們認為，這應該使我們全年都處於該運行率。

Right. So a second question, if I could. On the ROADMs versus ACO, DCO, there seems to be a shift -- fairly significant shift at that between what I would call optical switching and transmission in several companies' commentary. Can you talk to what extent you have exposure to a flattening market and the switching market and to what extent you think the acceleration in transmission can offset that?

正確的。那麼第二個問題，如果可以的話。在 ROADM 與 ACO、DCO 之間，似乎有一個轉變——在幾家公司的評論中我稱之為光交換和傳輸之間的相當顯著的轉變。您能否談談您在多大程度上接觸到扁平化市場和轉換市場，以及您認為傳播加速可以在多大程度上抵消這種影響？

So Alex, this is TS. Again, as you know, most of these ROADMs, we build for one customer. And if you listen to the earnings call, they -- essentially, they are saying, for the short term, it's pretty flat. And in the long run, they still believe that it's going to go up. So basically, whatever they say applies to us because we only have one customer on the ROADMs.

所以亞歷克斯，這是 TS。同樣，如您所知，大多數這些 ROADM 都是為一個客戶構建的。如果你聽聽財報電話會議，他們 - 基本上，他們說，短期內，它非常平坦。從長遠來看，他們仍然相信它會上漲。所以基本上，無論他們說什麼都適用於我們，因為我們在 ROADM 上只有一個客戶。

Right. But the question really was to what extent can you use transmission to offset that over the next couple to 3 quarters. Do you have enough visibility on transmission and do you sustain your share of the business when that shifts between those 2 segments?

正確的。但真正的問題是，在接下來的幾個到三個季度中，您可以在多大程度上使用傳輸來抵消它。您對傳輸有足夠的了解嗎？當傳輸在這兩個部分之間轉移時，您是否維持您的業務份額？

I would say, I think we do. I think the shift between, let's say, transport and transmission, we have a number of customers in that space that should help us offset. But we don't have visibility 2, 3 quarters out. We really just have that kind of rolling 13-week visibility. But we hope to be able to capitalize on that as they -- as that shift begins to unfold over the next few quarters. We have a good number of customers in that space. So we hope to be able to capitalize on that.

我會說，我想我們做到了。我認為，比方說，運輸和傳輸之間的轉變，我們在那個領域有很多客戶應該幫助我們抵消。但是我們沒有 2、3 個季度的能見度。我們真的只有那種滾動的 13 周可見性。但我們希望能夠利用這一點，因為這種轉變將在接下來的幾個季度開始展開。我們在那個領域有很多客戶。所以我們希望能夠利用這一點。

One last question then I'll see the floor. You indicated in past quarters that you were experiencing some lack of availability on some passive components and other fairly low cost but critical components that are part of your production sets. Has the supply constraints on those products ameliorated so that's no longer a drag? Or are we still absorbing that?

最後一個問題，然後我會看到地板。您在過去幾個季度表示，您在一些無源組件和其他成本相當低但屬於生產設備的關鍵組件上遇到了一些可用性不足的問題。這些產品的供應限制是否得到改善，不再拖累？還是我們還在吸收它？

Yes. I think that, if you're like, passive supply constraint that was plaguing the whole industry. If I go back maybe 3 quarters ago or something like that, that seems to have abated, ameliorate at this stage. It's pretty much behind us. We think, there's always -- we start every quarter with some challenges that our supply chain team has to go and secure. But that's just kind of normal course of business. But that overall, I think industry-wide passive constraint that was there 9 months ago, a year ago, that seems to have abated at this stage. There's always certain shocks here and there, but nothing of any significance.

是的。我認為，如果你喜歡，被動供應限制困擾著整個行業。如果我回到 3 個季度前或類似的時間，那似乎已經減弱，在這個階段有所改善。它幾乎在我們身後。我們認為，總是 - 我們每個季度開始時都會遇到一些挑戰，我們的供應鏈團隊必須去應對這些挑戰。但這只是一種正常的業務過程。但總的來說，我認為 9 個月前、一年前存在的全行業被動約束似乎在現階段有所減弱。總會有一些震驚，但沒有任何意義。

Our next question comes from Samik Chatterjee of JP Morgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

This is Joe Cardoso on for Samik Chatterjee. So for my first question, I wanted to dig in on the gross margin. I think last quarter, you guys guided for moderation from Q4 to 1Q. And so I was just curious if we can double-click there and just figure out what has changed or what the variance was in when you guys initially guided there and what changed from what you guys reported in the first quarter.

這是 Samik Chatterjee 的 Joe Cardoso。所以對於我的第一個問題，我想深入了解毛利率。我認為上個季度，你們指導了從第四季度到第一季度的節制。所以我很好奇我們是否可以雙擊那裡，然後弄清楚你們最初指導那裡時發生了什麼變化或差異是什麼，以及你們在第一季度報告的內容髮生了什麼變化。

This is TS. For the first quarter, as in my prepared remarks, we see the efficiency more than offset the merit increase. Typically, July, August, September, we start giving merit increase for the whole year. So that resulted about 20 basis points better than the previous quarter, June quarter. So June quarter was 11.8% and then moving to 12%. And moving forward Q2, we don't guide gross margin. But if you just look backward, based on the guidance, it did show improvement from 12%. So we are very happy that we are back to the 12% to 12.5% range and we'll continue to maintain that.

這是TS。對於第一季度，正如我在準備好的發言中所說，我們看到效率大大抵消了業績增長。通常，我們會在 7 月、8 月、9 月開始提供全年績效加薪。因此，這比上一季度 6 月季度高出約 20 個基點。所以 6 月季度為 11.8%，然後升至 12%。展望第二季度，我們不指導毛利率。但如果你回顧一下，根據指導，它確實顯示出 12% 的改善。所以我們很高興我們回到了 12% 到 12.5% 的範圍，我們將繼續保持這一水平。

Yes. Let me just maybe add, a lot of the good results we had in gross margin Q1, it's really down to a very tight cost control and efficiency gains from our team. Our internal team, the operations team, our supply chain team, really do an excellent job keeping our costs under tight control and realizing efficiency gains. So it's mostly driven by, like I say, efficiency gains and cost containment.

是的。讓我補充一下，我們在第一季度的毛利率中取得了很多不錯的成績，這實際上歸功於我們團隊非常嚴格的成本控制和效率提升。我們的內部團隊、運營團隊、供應鏈團隊在嚴格控製成本和實現效率提升方面做得非常出色。因此，就像我說的那樣，它主要是由效率提高和成本控制驅動的。

And then for my second question, relative to your commentary around the industrial laser market. It kind of seems like you guys are suggesting a little bit more of headwind or continuation of the headwinds that have been impacting that market while one of your biggest customers in the last earnings call kind of suggested that, that market was dropping off, if not, actually improving. So can you kind of explain what you guys are seeing there? Are you guys expecting it to trough in December and then improvement after there? Or whatever visibility you can provide will be helpful.

然後是我的第二個問題，關於您對工業激光市場的評論。似乎你們在暗示影響該市場的逆風或持續的逆風，而在上次財報電話會議中你們最大的客戶之一暗示，該市場正在下降，如果不是，實際上有所改善。那麼你能解釋一下你們在那裡看到了什麼嗎？你們是否希望它在 12 月達到低谷然後在那之後有所改善？或者您可以提供的任何可見性都會有所幫助。

Yes. I think that's probably a fair assessment. That industry is going through a tough time right now. The competition is fierce. Spending seems to be tightening up. So that whole industry is going through a pretty turbulent time.

是的。我認為這可能是一個公平的評估。該行業目前正處於艱難時期。競爭很激烈。支出似乎正在收緊。所以整個行業正在經歷一個相當動蕩的時期。

We have a number of customers. We have probably 4 customers in that space right now, one customer being our bigger one. And really, our shape and size in that market is a function of what's going on with our customers, so we're not immune from what's happening with our customers. So it's pretty flat, I would say. The laser market is pretty flat.

我們有很多客戶。我們現在在該領域可能有 4 個客戶，其中一個客戶是我們的大客戶。實際上，我們在該市場中的形狀和規模取決於我們的客戶正在發生的事情，因此我們無法免受客戶正在發生的事情的影響。所以它很平坦，我會說。激光市場相當平淡。

Longer term, we do remain quite optimistic as I might have mentioned in my prepared remarks. We do remain quite optimistic about the laser market because we think that some of the price pressure that the big companies in that space, that the Western world companies, if you like, are feeling. We believe, they will turn to outsourcing as a way to offset that pressure and will outsource more and more because to a large extent, a lot of the companies in that space, they insource quite heavily, they don't outsource that much. So we think we're very well positioned with the capabilities and experience we have. We think we're pretty well positioned to capitalize as that industry looks to outsourcing. But overall demand, I'd say short term, is kind of flat as some of our customers have indicated.

從長遠來看，正如我在準備好的發言中可能提到的那樣，我們確實仍然非常樂觀。我們對激光市場仍然非常樂觀，因為我們認為該領域的大公司，西方世界的公司，如果你願意的話，都感受到了一些價格壓力。我們相信，他們將轉向外包作為抵消這種壓力的一種方式，並且會越來越多地外包，因為在很大程度上，該領域的許多公司，他們大量外包，他們沒有外包那麼多。因此，我們認為我們憑藉我們擁有的能力和經驗處於非常有利的位置。我們認為，隨著該行業尋求外包，我們已經做好了充分利用的準備。但總體需求，我想說，短期內，正如我們的一些客戶所表示的那樣，有點持平。

(Operator Instructions) The next question comes from the line of Tim Savageaux of Northland Capital Markets.

（操作員說明）下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

Congrats on the results. First question is on the 10% customer side. Do you have any 10% customers outside of your traditional customer, large customer in the quarter?

祝賀結果。第一個問題是關於 10% 的客戶方。您在本季度的傳統客戶（大客戶）之外是否還有 10% 的客戶？

Well, as we said, we only reported 10% customers at the end of the year. We think we're probably tracking -- we've mentioned Infinera will likely be a 10% customer. There is a chance, there's another 1 or 2 who could become a 10% customer for the full year. But it's probably too early to start flagging that at this stage. But we certainly feel we'll have 2 by the end of the year, possibly 3. An outside chance there will be 4, but it's probably more like 3 at the end of the year, yes.

好吧，正如我們所說，我們在年底只報告了 10% 的客戶。我們認為我們可能正在跟踪——我們已經提到 Infinera 可能會成為 10% 的客戶。有機會，還有一兩個人可以成為全年 10% 的客戶。但現階段開始標記這一點可能還為時過早。但我們當然覺得到今年年底我們會有 2 個，可能是 3 個。外部機會是 4 個，但年底可能更像是 3 個，是的。

Okay. Appreciate that. And looking at telecom growth in the quarter, especially in the context, the things that silicon photonics line got down pretty reasonably. I wonder if you could characterize that 7% sequential growth in telecom. And then also I guess I've mentioned that in the context of your commentary on 400 gig growing so strongly been mostly from existing customers. But can you characterize the sequential growth either in the results or outlook or both in the context of contribution from new programs, your ramp with your new customer versus existing business or existing customers?

好的。感謝。看看本季度的電信增長，尤其是在這種情況下，矽光子產品線的下降相當合理。我想知道您是否可以描述電信連續 7% 的增長。然後我想我已經提到過，在你對 400 演出增長如此強勁的評論中，主要來自現有客戶。但是，您能否在新計劃的貢獻、新客戶與現有業務或現有客戶的增長情況下，描述結果或前景或兩者的連續增長？

Yes. A lot of the growth in telecom in the quarter, a lot of that did come from our new customers, big portion did come from our new customer, 400-gig growth is predominantly from an existing customer. And then the decline in silicon photonics, some of our silicon photonics business is telecom-related but some of that is actually datacom-related. So the overall, I suppose the 2 are a possible telecom growth and a decline in silicon photonics in the sense that the decline in silicon photonics is mostly for the datacom customers.

是的。本季度電信的很多增長，其中很多確實來自我們的新客戶，很大一部分確實來自我們的新客戶，400 兆的增長主要來自現有客戶。然後是矽光子學的衰退，我們的一些矽光子學業務與電信相關，但其中一些實際上與數據通信相關。所以總的來說，我認為這兩個是可能的電信增長和矽光子學的下降，因為矽光子學的下降主要是針對數據通信客戶。

All right. Understood. And any -- realizing you don't guide by these specific segments, but I wonder if you have any kind of anecdotal commentary as you look forward to that telecom growth continuing. Do you have any kind of similar thoughts around what you expect out of the silicon photonics as you head into next quarter and throughout the year? Do you expect that to return to growth at some point?

好的。明白了。並且任何 - 意識到你沒有按照這些特定部分進行指導，但我想知道你是否有任何類型的軼事評論，因為你期待著電信的持續增長。在進入下個季度和全年時，您對矽光子學的期望有什麼類似的想法嗎？你預計它會在某個時候恢復增長嗎？

Silicon photonics, I think a lot of that, I think on the telecom side, we think it's going to remain strong. And also on the datacom side, with several of our customers, 1 or 2 of our customers have experienced a little bit of softness in the data centers so that does affect us on the silicon photonics side. But overall, we think -- and again, we only guide a quarter at a time. But overall I think the sentiment out there that we hear is the telecom will be quite strong and datacom is a little bit flat and will continue to be flat, we think.

矽光子學，我認為很多，我認為在電信方面，我們認為它會保持強勁。在數據通信方面，我們的幾個客戶中，有 1 或 2 個客戶在數據中心經歷了一點軟弱，這確實影響了我們在矽光子學方面的表現。但總的來說，我們認為——而且，我們一次只指導四分之一。但總的來說，我認為我們聽到的市場情緒是電信將相當強勁，而數據通信略微持平並將繼續持平，我們認為。

Our next question comes from Alex Henderson of Needham.

我們的下一個問題來自 Needham 的 Alex Henderson。

I was hoping you could give us the geographic split.

我希望你能給我們劃分地域。

In terms of shipments, no more changes. North America, shy of 50%. And the rest are split between China, the rest of the world. Southeast Asia is also a big portion. We ship quite a bit to Southeast Asia countries.

在出貨量方面，沒有更多變化。北美，不到 50%。其餘的分佈在中國和世界其他地區。東南亞也是很大一部分。我們向東南亞國家運送了很多貨物。

And can you tell me what you said about the growth going forward in telecom again? I'm not sure I got it right in my notes. What was your expectation for telecom growth sequentially into the fourth -- CY 4Q, FY 2Q?

你能再次告訴我你對電信未來增長的看法嗎？我不確定我的筆記是否正確。您對第四季度電信增長的預期是什麼 - CY 4Q，FY 2Q？

Well, we haven't guided specific growth for telecom I guess the discussion was really more around overall sentiments. The sentiment we hear from our customers is that telecom will remain, we think, quite strong. Datacom is flat, but we haven't given specific guidance for our telecom revenue forward. We think we will do in next quarter.

好吧，我們還沒有指導電信的具體增長，我想討論實際上更多是圍繞整體情緒進行的。我們從客戶那裡聽到的情緒是，我們認為電信將保持相當強勁的勢頭。Datacom 持平，但我們尚未對未來的電信收入給出具體指導。我們認為我們會在下個季度做。

I see. And one more question, if I could. Around the Israel operation, when would you expect to be able to actually generate some revenues from that facility? Is that 6, 9 months out? Or how far out does that take?

我懂了。還有一個問題，如果可以的話。圍繞以色列業務，您預計什麼時候能夠從該設施實際產生一些收入？那是6、9個月嗎？或者這需要多遠？

I think we'll be -- we're targeting to be up and running and ready to rock and roll in the early part of next year, so the kind of January to March time frame, so we'll be ready to do business. But it takes a little bit of time then to when the business grows the business, but I think it should be contributing to a certain extent in the, I would say, in the June quarter.

我想我們會——我們的目標是在明年年初啟動並運行並準備好搖滾，所以就是 1 月到 3 月的時間框架，所以我們準備好開展業務.但是當業務增長時需要一點時間，但我認為它應該在一定程度上做出貢獻，我會說，在 6 月季度。

We would expect to see some revenue emanating from there in the June quarter, maybe a little bit earlier, but that's what we're thinking right now, Alex. So right now, we're fitting out the building and we're kind of fortunate that the building we got has a lot of the infrastructure because it was a semiconductor manufacturing facility originally. It has a lot of the facilities infrastructure already in place. So that shortens the time line for us. And we're planning to install the full suite of equipment, SMT equipment, optical packaging equipment and very importantly for our customers, full failure analysis capability there. So we'll replicate all these on a smaller scale, the same set of capabilities that we have in Bangkok actually.

我們希望在 6 月季度看到一些收入從那裡產生，也許會早一點，但這就是我們現在的想法，亞歷克斯。所以現在，我們正在裝修這座建築，我們很幸運，我們得到的這座建築有很多基礎設施，因為它最初是一家半導體製造廠。它有很多設施基礎設施已經到位。這樣就縮短了我們的時間線。我們計劃安裝全套設備、SMT 設備、光學封裝設備，對我們的客戶來說非常重要的是，在那里安裝完整的故障分析能力。因此，我們將在較小的規模上複製所有這些，實際上我們在曼谷擁有相同的功能集。

Do you see that facility as being roughly comparable sized to Fabrinet West?

您認為該設施的規模與 Fabrinet West 大致相當嗎？

It's a smaller facility. In terms of square footage, it's smaller. The Fabrinet West facility, it's a great location, it's a great facility. The building itself is probably a little bit bigger than what we would actually need. So it's a smaller facility. I think in terms of square footage, it's about...

這是一個較小的設施。就面積而言，它更小。Fabrinet West 設施位置優越，設施一流。建築物本身可能比我們實際需要的要大一點。所以這是一個較小的設施。我認為就平方英尺而言，它大約是......

20,000.

20,000。

Roughly 20,000 square feet. So it's an ideal size actually for what we need. And similar to Fabrinet West, it's not going to be a huge revenue generator in and of itself. The main purpose of Fabrinet Israel will be to win customers that we then transfer to Bangkok. So we'll try and replicate the success we've had in Fabrinet West in Israel.

大約20,000平方英尺。所以它實際上是我們需要的理想尺寸。與 Fabrinet West 類似，它本身不會成為巨大的收入來源。Fabrinet Israel 的主要目的是贏得客戶，然後我們將這些客戶轉移到曼谷。因此，我們將嘗試複製我們在以色列 Fabrinet West 取得的成功。

I see. Can you give us any sense of what's going on in terms of your factory utilization in your facilities, when you might need to start moving on the next facility? Can you give us an update on that?

我懂了。當您可能需要開始搬遷到下一個設施時，您能否告訴我們您設施中工廠利用率的情況？你能告訴我們最新情況嗎？

Yes. So we continue to create additional space at our main campus in Pinehurst and win new business in Chonburi. It's hard to say, Alex, really because we've been very successful. We probably surprised ourselves how successful we've been at gaining efficiencies and freeing up space in Pinehurst. So we're growing our Pinehurst facility -- our Pinehurst revenue on the same footprint. We're adding our new business into Chonburi. It's really hard to say at this point when we'll be ready to -- I'll put it this way, if everything we have in the pipeline lands, we'll be hurrying up, but not everything will land. So I think we're still very optimistic, I would say, about the need for us to grow Chonburi. And like I say, if everything we have in the pipeline lands, we'll have to get going quickly. But it's very hard to put a date on that. I'm not being evasive, it's just it's quite hard to put a date on it because like I say a lot of the growth with our existing customers will be in Pinehurst whereas Chonburi will be really more for the newer customers.

是的。因此，我們繼續在派恩赫斯特的主校區創造更多空間，並在春武里贏得新業務。很難說，亞歷克斯，真的，因為我們非常成功。我們可能對自己在提高效率和釋放派恩赫斯特空間方面取得的成功感到驚訝。因此，我們正在擴大我們的 Pinehurst 設施——我們在相同佔地面積上的 Pinehurst 收入。我們正在將我們的新業務添加到春武里府。在這一點上真的很難說我們什麼時候準備好——我會這樣說，如果我們在管道中的所有東西都落地，我們會加快速度，但不是所有東西都會落地。所以我認為我們仍然非常樂觀，我想說，我們需要發展春武里府。就像我說的，如果我們在管道中擁有的一切都落地，我們將不得不迅速開始。但很難確定日期。我並不是在迴避，只是很難確定日期，因為就像我說的那樣，我們現有客戶的很多增長將在 Pinehurst 進行，而春武里將更多地面向新客戶。

All right. One last question if I could since it sounds like you don't have too many in the queue. The 400 gig commentary, can you talk a little bit about whether that's on the telco side, whether that's 400 gig or 600 gig? I assume that, that's mostly 600-gig product within that mix for telco. Is that correct?

好的。最後一個問題，我是否可以，因為聽起來你的隊列中沒有太多人。關於 400 gig 的評論，您能談談是在電信方面嗎，是 400 gig 還是 600 gig？我認為，在電信組合中，這主要是 600-gig 產品。那是對的嗎？

It's a mixture of 400.

它是400的混合物。

In Datacom?

在數據通信中？

Yes, yes, mostly 400 gig, yes.

是的，是的，主要是 400 場演出，是的。

In datacom, that's 400 gig, but what about on the telecom side?

在數據通信中，這是 400 gig，但在電信方面呢？

On the telecom side, yes, that will be 400 gig.

在電信方面，是的，那將是 400 gig。

Majority, 400 gig, yes. Excluding the 600 gig, that 1.2 terabytes, that's excluded from the number Seamus just quoted.

多數，400 演出，是的。不包括 600 gig，也就是 1.2 TB，Seamus 剛剛引用的數字中沒有包含該數據。

Our next question is a follow-up from John Marchetti of Stifel.

我們的下一個問題是來自 Stifel 的 John Marchetti 的跟進。

Seamus, if I can just follow-up a little bit on that Israel site. It seems a little bit of a departure from the last couple of quarters where it seemed like you had actually been backing off a little bit on the expectation there. Curious if something changed in the environment or you just found an opportunity that -- or even just decided itself that made sense to kind of move forward your -- that sort of changed at least what I perceived to be the trajectory of that business.

Seamus，如果我能在那個以色列網站上跟進一下的話。這似乎與過去幾個季度有點背離，在那裡你似乎實際上已經對那裡的期望有所退縮。很好奇環境是否發生了變化，或者你只是發現了一個機會——或者甚至只是自己決定讓你的前進變得有意義——這至少改變了我認為是該業務的軌跡。

And then just secondarily, if you can comment at all about the mix expected in there. I'm curious if this is mostly nonoptical type of revenue that you think you're going to go after in this market or if it's similar to the Fabrinet West where it'll be a little bit of a mix of everything?

然後是次要的，如果你能對那裡的預期組合發表評論的話。我很好奇這是否主要是您認為您將在這個市場上追求的非光學類型的收入，或者它是否與 Fabrinet West 類似，在那裡它會有點混合一切？

Good question. I think on the timing on the trajectory, we've always been, I would say, quite bullish on the need for us to bring up our facility in Israel. The hold up really, John, was just frankly being able to find the right location. We think Israel is a great location we have, 3 or 4 existing customers there, so we'll be looking to service their needs and also grow our business there.

好問題。我認為在軌跡上的時間點上，我會說，我們一直非常看好我們在以色列建立設施的必要性。真正的阻礙，約翰，坦率地說就是能夠找到正確的位置。我們認為以色列是我們擁有的絕佳地點，那裡有 3 或 4 個現有客戶，因此我們將尋求滿足他們的需求並在那裡發展我們的業務。

So the customers we have, we've spoken to them and they're very supportive of the idea. Our hold up, if you like, was just -- it's literally finding the right location. There's a lot of, let's say incentives -- government incentives to build in locations that would not be ideal for us. We're -- if you look at what we've done in Fabrinet West, we were right in the middle of Silicon Valley. Location is very important and it's the same in Israel. So it was really about just finding the right location, and we've done that, we've managed to find the right location.

所以我們擁有的客戶，我們已經與他們交談過，他們非常支持這個想法。我們的堅持，如果你願意的話，只是 - 它確實找到了正確的位置。比方說，有很多激勵措施——政府鼓勵在不適合我們的地方建設。我們——如果你看看我們在 Fabrinet West 所做的事情，我們就在矽谷的中心。位置非常重要，在以色列也是如此。所以這真的只是找到正確的位置，我們已經做到了，我們已經設法找到了正確的位置。

As to the mix, I mean our existing customers, let me just think for a moment, are all optical communications companies.

至於組合，我的意思是我們現有的客戶，讓我想一下，都是光通信公司。

And mostly datacom.

主要是數據通信。

Yes. And mostly datacom. Our existing Israeli customers are all optical communications companies, mostly datacom. So we would be looking to obviously continue to grow our business with those companies and add other communications companies but also other non-communications companies that are in our technology sweet spot, if you like, of precision, complex products, just as LIDAR and other applications. And we're not limiting ourselves to optical, but we are limiting ourselves to high-technology complex infrastructure type products that was transferred to Thailand.

是的。主要是數據通信。我們現有的以色列客戶都是光通信公司，主要是數據通信公司。因此，我們顯然希望繼續與這些公司發展我們的業務，並增加其他通信公司以及其他非通信公司，這些公司處於我們的技術甜蜜點，如果你願意，精密、複雜的產品，就像激光雷達和其他應用程序。我們並沒有將自己局限於光學，而是將自己局限於轉移到泰國的高科技複雜基礎設施類型的產品。

We have a follow-up question from Tim Savageaux of Northland Capital Markets.

Northland Capital Markets 的 Tim Savageaux 提出了後續問題。

Wanted to focus back on your commentary on the pipeline. And I wonder if you can give us an update as to what extent kind of customers, OEMs, moving supply chains out of China is contributing to that pipeline, I guess. In past calls, you characterize that as a tailwind but pretty far out. I wonder if, now that another quarter has passed, if you can give us an update on kind of what type of opportunities you might be seeing from this kind of shifts in global supply chains?

想重新關注您對管道的評論。我想知道你是否可以向我們提供最新信息，說明什麼樣的客戶、原始設備製造商、將供應鏈移出中國正在為這條管道做出貢獻，我想。在過去的電話中，你將其描述為順風但相當遙遠。我想知道，現在又一個季度過去了，您能否向我們介紹一下您可能會從全球供應鏈的這種轉變中看到什麼樣的機會？

So that's -- I would say that's still a tailwind but still quite slow to move. Some of the pipeline that I referenced earlier is both a function of that, but it's really more a function of just continuing to grow our business with our existing customers and also adding new customers. We have a few big, I would say, big opportunities in the pipeline and some of the things that we're quite excited about are some of the opportunities really moving up the food chain for us, moving up into the full system build, full network systems. With the business we have transferred from Berlin, that gives us experience now with that full network system. We have some other business in that same space. So we think we're kind of uniquely positioned that moves in our industry and that we're approaching the full system build from the, if you like, from the bottom up. We are producing the most complex, high-technology components within the network system, so we think it makes sense for us to move up the food chain and produce the modules in the full system that goes with that. So that's in large part what we're targeting, Tim. And like I say, we have some pretty exciting opportunities there that we're pursuing.

所以那是 - 我會說這仍然是一個順風，但移動速度仍然很慢。我之前提到的一些管道既是它的一個功能，但它實際上更多的是繼續發展我們與現有客戶的業務並增加新客戶的功能。我們有一些大的，我想說的，大的機會在醞釀中，我們非常興奮的一些事情是一些真正為我們提升食物鏈的機會，進入完整的系統構建，完整的網絡系統。憑藉我們從柏林轉移的業務，這讓我們現在有了完整網絡系統的經驗。我們在同一領域還有一些其他業務。因此，我們認為我們在我們的行業中處於獨特的地位，並且我們正在從（如果您願意）自下而上地構建完整的系統。我們正在網絡系統中生產最複雜、高科技的組件，因此我們認為我們有必要在食物鏈中向上移動並在與之相伴的整個系統中生產模塊。所以這在很大程度上是我們的目標，蒂姆。就像我說的，我們正在尋求一些非常令人興奮的機會。

If I could just follow up on that quickly. In your -- I imagine that comment in terms of moving up to the full systems level, remains focused on optical communications, optical transport or are there kind of other parts of the networking universe where you see as opportunities?

如果我能盡快跟進就好了。在你的——我想關於提升到完整系統級別的評論仍然集中在光通信、光傳輸或者你認為網絡世界的其他部分是否有機會？

It's mostly, as you said, the optical infrastructure equipment that -- the networking equipment. We're not planning to become, if you like, a general large system producer for like, say, storage equipment or anything like that. That's just not in our sweet spot.

正如您所說，主要是光學基礎設施設備——網絡設備。如果你願意的話，我們不打算成為一個通用的大型系統生產商，比如存儲設備或類似的東西。那不在我們的最佳位置。

It really only makes sense for us when we're producing a large portion of the high-technology components and content that goes into those systems. So -- and it also makes sense for us. Let's say, it doesn't make sense for us to produce large systems, but we're not producing any of the content, if you know what I mean. So we would not see ourselves as just an assembler. We would see ourselves as a high-technology producer of the industry's most complex technology and components. Therefore, it makes sense for us to produce the full system. Does that makes sense, Tim?

只有當我們生產進入這些系統的大部分高科技組件和內容時，它才對我們有意義。所以 - 這對我們也很有意義。比方說，我們製作大型系統沒有意義，但我們不製作任何內容，如果你明白我的意思的話。所以我們不會把自己看作只是一個彙編程序。我們將把自己視為業內最複雜技術和組件的高科技生產商。因此，我們生產完整的系統是有意義的。這有意義嗎，蒂姆？

Sure it does.

當然可以。

At this time, I'd like turn the call back over to Seamus Grady for any closing remarks. Sir?

此時，我想將電話轉回給 Seamus Grady 以聽取任何結束語。先生？

Thank you, operator. Thank you all for joining our call today. We're excited to deliver strong results and a positive outlook as we continue to position the company for continued growth and diversification over the longer term. And we look forward to speaking with you again soon. 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。我們很高興能夠提供強勁的業績和積極的前景，因為我們繼續將公司定位為長期持續增長和多元化。我們期待很快再次與您交談。謝謝，再見。

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