Infinera Corp (INFN) 2019 Q2 法說會逐字稿

Good afternoon and welcome to the Infinera's Fiscal Second Quarter 2019 Financial Results Conference Call.

下午好，歡迎參加 Infinera 2019 財年第二季度財務業績電話會議。

(Operator Instructions) Today's call is being recorded.

（接線員說明）今天的電話正在錄音中。

If anyone has any objection, you may disconnect at this time.

如果有人有異議，此時您可以斷開連接。

I would now like to turn the call over to Ted Moreau, Head of Investor Relations for Infinera.

我現在想把電話轉給 Infinera 投資者關係主管 Ted Moreau。

Ted, you may begin.

泰德，你可以開始了。

Thank you, operator.

謝謝你，運營商。

Welcome to Infinera's Second Quarter of 2019 Conference Call.

歡迎來到 Infinera 2019 年第二季度電話會議。

A copy of today's earnings and CFO commentary are available on the Investor Relations section of our website.

可在我們網站的投資者關係部分獲取今日收益和首席財務官評論的副本。

Additionally, this call is being recorded and will be available for replay from the website.

此外，此通話正在錄製中，可以從網站上重播。

Today's call will include projections and estimates that constitute forward-looking statements, including but not limited to statements about our business, plans, sales opportunities, manufacturing operations, products, technology and strategy, statements about the current status of our integration plans and synergies as well as statements regarding our third quarter outlook.

今天的電話會議將包括構成前瞻性陳述的預測和估計，包括但不限於關於我們的業務、計劃、銷售機會、製造業務、產品、技術和戰略的陳述，關於我們整合計劃和協同效應的現狀的陳述以及關於我們第三季度展望的聲明。

These statements are subject to risks and uncertainties that could cause Infinera's results to differ materially from management's current expectations.

這些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 Infinera 的業績與管理層當前的預期存在重大差異。

Actual results may differ materially as a result of various risk factors as included in our most recently filed 10-Q as well as the earnings release and CFO commentary furnished with our 8-K filed today.

由於我們最近提交的 10-Q 以及我們今天提交的 8-K 中提供的收益發布和首席財務官評論中包含的各種風險因素，實際結果可能存在重大差異。

Please be reminded that all statements are made as of today, and Infinera undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.

請注意，所有聲明均截至今日作出，Infinera 不承擔更新或修改任何前瞻性聲明以反映本次電話會議日期後可能出現的事件或情況的義務。

Today's conference call includes certain non-GAAP financial measures.

今天的電話會議包括某些非 GAAP 財務措施。

Pursuant to Regulation G, we have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our second quarter of 2019 earnings release and CFO commentary.

根據 G 條例，我們在 2019 年第二季度的收益發布和首席財務官評論中提供了這些非 GAAP 財務措施與最直接可比的 GAAP 財務措施的對賬。

I will now turn the call over to our Chief Executive Officer, Tom Fallon.

我現在將電話轉交給我們的首席執行官湯姆法倫。

Good afternoon and thank you for joining us on our second quarter 2019 conference call.

下午好，感謝您加入我們 2019 年第二季度的電話會議。

Joining me today are CFO, Brad Feller; and COO, David Heard.

今天加入我的是首席財務官 Brad Feller；和首席運營官大衛赫德。

After quickly reviewing our Q2 financial performance, I will summarize how we see the market evolving and describe the opportunity created by our innovation road map.

在快速回顧了我們第二季度的財務業績後，我將總結我們如何看待市場演變並描述我們的創新路線圖創造的機會。

I'll then turn the call over to Brad, who will provide a more detailed review of our Q2 results and an outlook for Q3 and the remainder of the year.

然後我會把電話轉給布拉德，他將提供對我們第二季度業績的更詳細審查以及對第三季度和今年剩餘時間的展望。

Over the past several months we've made tremendous progress toward building the New Infinera, an at-scale, optical networking innovator, as envisioned when we acquired Coriant in the fall of 2018.

在過去的幾個月裡，我們在構建 New Infinera 方面取得了巨大進展，這是一個大規模的光網絡創新者，正如我們在 2018 年秋季收購 Coriant 時所設想的那樣。

As we approach the 1-year anniversary of this acquisition, we are witnessing strong progress around the foundational pillars that support the thesis of our strategy.

在我們接近此次收購一周年之際，我們正在見證圍繞支持我們戰略主題的基礎支柱取得的巨大進展。

First, with significant order and pipeline improvement from the largest consumers of optical technology, we are enhancing our scale, a mandatory ingredient to be a leader in this industry.

首先，隨著光學技術最大消費者的訂單和管道的顯著改善，我們正在擴大我們的規模，這是成為該行業領導者的必要因素。

Second, as we near the end of our integration period, solid execution continues to support our expectation of returning to non-GAAP profitability and cash flow in the fourth quarter, just over 1 year from our closure of the acquisition.

其次，隨著我們接近整合期的尾聲，穩健的執行力繼續支持我們在第四季度恢復非 GAAP 盈利能力和現金流的預期，距離我們完成收購僅一年多的時間。

We are on track to substantially finish our integration work in the fourth quarter of this year.

我們有望在今年第四季度基本完成整合工作。

And finally, our investment in differentiating innovation, which has remained robust through this integration period, has positioned us well for the next generation of optical spending.

最後，我們在差異化創新方面的投資在這個整合期間一直保持強勁，使我們在下一代光學支出方面處於有利地位。

Before elaborating further on these key pillars, I want to mention several recent notable events and provide an integration update.

在進一步闡述這些關鍵支柱之前，我想提一下最近發生的幾個值得注意的事件並提供集成更新。

Last week we announced that we hired Nancy Erba as our new CFO.

上週我們宣布聘請 Nancy Erba 擔任我們的新首席財務官。

Nancy brings significant experience in running large-scale operations in industries that demand execution efficiency and is a great addition to the team.

Nancy 在對執行效率有要求的行業進行大規模運營方面帶來了豐富的經驗，對團隊來說是一個很好的補充。

Welcome aboard, Nancy.

歡迎加入，南希。

We've closed on a $100 million asset-backed loan facility with Wells Fargo to provide an additional cost-effective source of liquidity as we execute on our business plan.

我們已經與富國銀行達成了 1 億美元的資產支持貸款安排，以便在我們執行業務計劃時提供額外的具有成本效益的流動性來源。

We believe this gives us the appropriate working capital flexibility needed to scale the Tier 1 relationships we've been developing in the market.

我們相信這為我們提供了適當的營運資金靈活性，以擴大我們在市場上開發的一級關係。

We have fully transitioned manufacturing from our Berlin facility and are successfully ramping production with Fabrinet in their variable low-cost manufacturing center.

我們已經從我們的柏林工廠完全過渡製造，並在其可變的低成本製造中心成功地提高了 Fabrinet 的產量。

These steps drive out significant fixed costs from our business and will have a positive impact on gross margins as we exit the year.

這些步驟從我們的業務中剔除了大量固定成本，並將在我們今年結束時對毛利率產生積極影響。

On the IT front, we have now completed a third and final systems implementation project on time and within scope.

在 IT 方面，我們現在已經在範圍內按時完成了第三個也是最後一個系統實施項目。

The New Infinera is now unified with one version of SAP, one version of Salesforce, and one instance of Agile.

New Infinera 現在統一了一個版本的 SAP、一個版本的 Salesforce 和一個 Agile 實例。

These unified systems will allow us to continue to bring down expenses and more efficiently run a significantly scaled business.

這些統一的系統將使我們能夠繼續降低開支並更有效地運營規模顯著擴大的業務。

With these steps and many others, we have now implemented cost reduction activities that will deliver in excess of $100 million in non-GAAP OpEx savings and in excess of $160 million in combined non-GAAP, OpEx and COG savings in 2019.

通過這些步驟和許多其他步驟，我們現在已經實施了成本削減活動，這些活動將在 2019 年實現超過 1 億美元的非 GAAP 運營支出節省，以及超過 1.6 億美元的非 GAAP、運營支出和 COG 節省。

And importantly on the innovation front, we taped out our ICE6 DSP, a critical deliverable required for us to lead in the next-generation optical performance.

重要的是，在創新方面，我們流片了我們的 ICE6 DSP，這是我們引領下一代光學性能所需的關鍵交付成果。

While there's more work to be done, our integration progress remains fully on track as we continue to exceed the milestones outlined when we closed the transaction.

儘管還有更多工作要做，但隨著我們繼續超越完成交易時概述的里程碑，我們的整合進度仍完全按計劃進行。

These significant accomplishments laid a foundation for achieving fourth quarter non-GAAP profitability and capitalizing on future market opportunities.

這些重大成就為實現第四季度非 GAAP 盈利能力和把握未來市場機會奠定了基礎。

Moving on to our Q2 financial results, we are towards the upper end of our guidance range with non-GAAP revenue of $307 million, non-GAAP gross margins of approximately 31% and non-GAAP operating expenses at $132 million.

繼續我們第二季度的財務業績，我們正接近指導範圍的上限，非 GAAP 收入為 3.07 億美元，非 GAAP 毛利率約為 31%，非 GAAP 運營費用為 1.32 億美元。

Revenue benefited from healthy demand from our top customer, the successful initial ramp of our new ICP customer and solid demand from other global Tier 1 relationships.

收入受益於我們頂級客戶的健康需求、我們新的 ICP 客戶的成功初始增長以及其他全球一級關係的穩定需求。

As we had anticipated during Q1 earnings call 3 months ago, the highlight of the quarter was the strength of our bookings, which grew greater than 15% quarter-on-quarter.

正如我們在 3 個月前的第一季度財報電話會議上所預期的那樣，本季度的亮點是我們的預訂量強勁，環比增長超過 15%。

We saw particular strength from Tier 1s globally, significant growth in subsea bookings and strong bookings from our new ICP customer.

我們看到了全球一級供應商的特別實力、海底預訂的顯著增長以及來自我們新的 ICP 客戶的強勁預訂。

In fact, 2 of our top 5 bookings in the quarter came from customers that were new to the company.

事實上，我們本季度的前 5 名預訂中有 2 名來自公司的新客戶。

This strength more than offset continued weakness from our North America cable customer and has created a significantly expanded pipeline for the second half of the year.

這一實力足以抵消我們北美有線電視客戶的持續疲軟，並為今年下半年創造了一個顯著擴大的管道。

In part due to our success in adding new customers -- a significant portion of Q2 shipments were footprint expansion opportunities -- we've pushed our non-GAAP margin down to 31% from 35% in Q1, in line with our expectations entering the quarter.

部分由於我們成功地增加了新客戶——第二季度出貨量的很大一部分是足跡擴張機會——我們已將我們的非 GAAP 利潤率從第一季度的 35% 降至 31%，這符合我們進入 2019 年的預期四分之一。

This footprint was about equally split between new customers and new opportunities with current customers.

這個足跡在新客戶和現有客戶的新機會之間大致平分。

We view this footprint expansion as a great investment, one that creates the opportunity to earn higher-margin transponder fill over time, a dynamic we've experienced periodically through our history.

我們將這種足跡擴張視為一項偉大的投資，它創造了隨著時間的推移獲得更高利潤的轉發器填充的機會，這是我們在歷史上定期經歷的一種動態。

Following our third consecutive quarter of backlog growth, bookings momentum and positive order trends, we are increasingly confident in our near- and longer-term visibility.

繼我們連續第三個季度積壓增長、預訂勢頭和積極的訂單趨勢之後，我們對我們的近期和長期可見性越來越有信心。

Albeit prudent in our guidance, we see healthy market demand we believe we are well positioned to capitalize on a number of industry and macro trends.

儘管我們的指導是謹慎的，但我們看到健康的市場需求，我們相信我們有能力利用一些行業和宏觀趨勢。

These include the continued shift to the cloud, migration to open and disaggregated network architectures and a selection of trusted suppliers that have a robust technology road map for continued differentiation.

其中包括繼續向雲遷移、向開放式和分解式網絡架構遷移，以及選擇具有穩健技術路線圖以實現持續差異化的值得信賴的供應商。

One important architectural trend is the continued momentum to a disaggregated network model in a growing number of customer networks.

一個重要的架構趨勢是在越來越多的客戶網絡中繼續採用分解網絡模型。

This is reflected in the significant growth of this segment, which is predicted to be a multibillion-dollar market over the next few years.

這反映在該細分市場的顯著增長上，預計未來幾年將成為一個價值數十億美元的市場。

Our Groove platform is meaningfully contributing to this trend, as bookings grew 75% quarter-on-quarter and 80% year-over-year.

我們的 Groove 平台對這一趨勢做出了有意義的貢獻，預訂量環比增長 75%，同比增長 80%。

This platform not only opened up opportunity at the previously mentioned ICP but was also the cornerstone of the new Tier 1 win in Asia that began shipping in Q2.

該平台不僅在前面提到的 ICP 上開闢了機會，而且還是在第二季度開始出貨的亞洲新 1 級勝利的基石。

The promise of disaggregation is also moving beyond the optical domain with significant customer interest at the IP edge.

分解的前景也超越了光領域，在 IP 邊緣引起了客戶的極大興趣。

Not only will this bring customers a reduction in CapEx, the real advantage is allowing them to deploy services faster by breaking the chokehold that proprietary and closed devices have had on this market.

這不僅會為客戶帶來資本支出的減少，真正的優勢是讓他們能夠打破專有和封閉設備在這個市場上的瓶頸，從而更快地部署服務。

Our DRX, built with our field-proven hardware and software, carrier-class IP stacks, has now successfully completed lab trials with a leading Tier 1 customer and is slated for first office application in the second half of this year.

我們的 DRX 採用我們經過現場驗證的硬件和軟件、運營商級 IP 堆棧構建，現已成功完成與領先的 1 級客戶的實驗室試驗，併計劃於今年下半年進行首次辦公室應用。

While this market is still developing, the opportunity we see in 5G and DAA networks for this solution is validated by a significant pipeline of trials with some of the largest Tier 1s and cable operators around the world.

雖然這個市場仍在發展，但我們在 5G 和 DAA 網絡中看到的這個解決方案的機會已經通過與全球一些最大的一級供應商和有線運營商進行的大量試驗得到驗證。

In both of these use cases, we believe our timing is ideal for bringing this revolutionary architecture to the market.

在這兩個用例中，我們相信我們的時機是將這種革命性架構推向市場的理想時機。

It is also clear that some larger customers are becoming uncomfortable with their over-reliance on certain suppliers, opening up opportunities for the New Infinera.

同樣明顯的是，一些大客戶對過度依賴某些供應商感到不安，這為新 Infinera 帶來了機會。

Whether for reasons of network security, continuity of supply, global politics and customer pressure or general overexposure, these customers are evaluating alternatives to their current solution.

無論是出於網絡安全、供應連續性、全球政治和客戶壓力還是普遍過度暴露的原因，這些客戶正在評估其當前解決方案的替代方案。

While generally we don't believe telcos will decommission working networks, we do see a growing interest by them to expand their networks with other vendor alternatives.

雖然我們通常不相信電信公司會停用工作網絡，但我們確實看到他們越來越有興趣使用其他供應商的替代方案來擴展他們的網絡。

During Q2, for example, we were awarded our first Huawei replacement deal with a Tier 1 in Asia, and we anticipate more of these opportunities arising over the course of time.

例如，在第二季度，我們在亞洲獲得了第一個與一級供應商的華為更換協議，我們預計隨著時間的推移會出現更多這樣的機會。

And finally, I see technology differentiation becoming significantly more important in vendor selection.

最後，我看到技術差異化在供應商選擇中變得越來越重要。

Our customers participate in highly competitive markets, and their own competitiveness is closely tied to the underlying technology that enables delivery of their services.

我們的客戶參與競爭激烈的市場，他們自身的競爭力與支持其服務交付的基礎技術密切相關。

As we are invited to new opportunities, we see a shift in the customer buying criteria from primarily evaluating those available today to evaluating what we reliably will be able to deliver over the next couple of technology generations.

當我們受到新機會的邀請時，我們看到客戶購買標準發生了轉變，從主要評估當今可用的產品轉變為評估我們在未來幾代技術中能夠可靠地提供的產品。

In this regard, we are uniquely positioned in the market, with both ICE4 and our 600-gig solutions providing cost and performance leadership today, our ICE6 on schedule for delivering 800-gig in 2020 and ICE7 on the drawing board.

在這方面，我們在市場上處於獨特的地位，ICE4 和我們的 600-gig 解決方案在成本和性能方面均處於領先地位，我們的 ICE6 按計劃在 2020 年交付 800-gig，而 ICE7 正在設計中。

Today we remain 1 of only 2 suppliers that have committed 800-gig over the next year.

今天，我們仍然是僅有的 2 家承諾明年生產 800 兆的供應商之一。

As the optical supply chain continues to consolidate, our position in the market as a differentiated optical technology provider continues to be enhanced by our successful integration of Coriant.

隨著光學供應鏈的不斷鞏固，我們作為差異化光學技術供應商的市場地位因我們對 Coriant 的成功整合而繼續得到加強。

On that note, our integration plan has never been just about capturing cost efficiencies.

在這一點上，我們的整合計劃從來不僅僅是為了提高成本效率。

As I noted earlier, we've maintained our R&D leadership in optical performance and now, with the most significant integration risk behind us, we can focus even more of our resources on technology development and productization.

正如我之前提到的，我們在光學性能方面一直保持著研發領先地位，現在，隨著最大的集成風險已經過去，我們可以將更多資源集中在技術開發和產品化上。

As we communicated during our July 17 technology road map webcast, our focus is in 3 distinct categories: optical leadership, optical and IP disaggregated platforms, and automation that delivers network solutions.

正如我們在 7 月 17 日的技術路線圖網絡廣播中所傳達的那樣，我們的重點是 3 個不同的類別：光學領導地位、光學和 IP 分解平台以及提供網絡解決方案的自動化。

In optical leadership, we have recently introduced our 600-gig solution with our Groove platform.

在光學領域，我們最近推出了帶有 Groove 平台的 600-gig 解決方案。

In the first half of the year, we successfully completed 14 customer trials and had 18 additional trials scheduled for the second half.

上半年，我們成功完成了 14 項客戶試驗，下半年還安排了 18 項額外試驗。

To date 5 customers have verbally awarded us wins, with one of them extending us a PO.

迄今為止，已有 5 位客戶口頭授予我們勝利，其中一位向我們提供了 PO。

This customer is also a new Groove win for us, and our technology road map was a critical decision criteria.

這個客戶對我們來說也是一個新的 Groove 勝利，我們的技術路線圖是一個關鍵的決策標準。

A significant number of other Groove wins have been based on our road map of offering both 600-gig and 800-gig technology, even if initial deployments are with lower-speed solutions.

許多其他的 Groove 勝利都是基於我們提供 600-gig 和 800-gig 技術的路線圖，即使初始部署使用的是低速解決方案。

Based on these wins, we expect initial 600-gig revenue in the second half of 2019 with a significant volume increase in the first part of 2020.

基於這些勝利，我們預計 2019 年下半年的初始收入將達到 600 兆，而 2020 年上半年的銷量將大幅增加。

At the heart of our portfolio is our vertical integration strategy of developing and manufacturing optical engines.

我們產品組合的核心是開發和製造光學引擎的垂直整合戰略。

As wavelength speeds continue to advance, we believe that vertical integration becomes a mandatory ingredient in the ability to fundamentally deliver the technology and to control the cost structure that makes it economically attractive.

隨著波長速度的不斷提高，我們相信垂直整合成為從根本上提供技術和控製成本結構的能力的必要組成部分，使其在經濟上具有吸引力。

We view recent industry consolidation as a continuing endorsement of the vertically integrated strategy installed at our inception nearly 20 years ago.

我們將最近的行業整合視為對近 20 年前我們成立之初就採用的垂直整合戰略的持續認可。

We have recently achieved an important vertical integration milestone with the tape-out of our ICE6 DSP, putting us on track for first silicon this fall and 800-gig product delivery in the second half of 2020.

我們最近通過 ICE6 DSP 的流片實現了一個重要的垂直整合里程碑，使我們有望在今年秋天推出第一塊矽片，並在 2020 年下半年交付 800 兆產品。

As communicated during our recent road map webcast, ICE6 will deliver better spectral efficiency and lower cost per bit, not only at 800-gig but through a range of transmission rates from 200-gig to 800-gig, opening up a tremendous market opportunity.

正如我們在最近的路線圖網絡廣播中所傳達的那樣，ICE6 將提供更好的頻譜效率和更低的每比特成本，不僅在 800-gig，而且通過從 200-gig 到 800-gig 的一系列傳輸速率，開闢了巨大的市場機會。

Our customers will be able to use the same technology for applications spanning from short-reach data center interconnect to transoceanic lengths, improving their operating costs and simplifying their network architectures.

我們的客戶將能夠將相同的技術用於從短距離數據中心互連到跨洋長度的應用，從而降低運營成本並簡化網絡架構。

While we remain only 1 of 2 vendors with published 800-gig solutions coming to the market in the near term, we are the only one promising 1.6 terabits of capacity in a single device.

雖然我們仍然是短期內推出 800 兆位解決方案的 2 家供應商中的 1 家，但我們是唯一一家承諾在單個設備中提供 1.6 太比特容量的供應商。

This level of integration in the DSP and corresponding optics is the core of Infinera's differentiation.

DSP 和相應光學器件的這種集成水平是 Infinera 差異化的核心。

While our heritage has been focused on high-capacity optical integration, we continue to expand our toolbox of optical intellectual property.

雖然我們的傳統一直專注於高容量光學集成，但我們繼續擴展我們的光學知識產權工具箱。

At ECOC in September we intend to lay out our plans for using this IP to bring a new architecture to the aggregation market with a unique pluggable strategy.

在 9 月份的 ECOC 上，我們打算制定使用該 IP 的計劃，通過獨特的可插拔策略為聚合市場帶來新的架構。

In summary, the combination of significant order momentum, pipeline improvement and customer wins has driven improved confidence and momentum in our business.

總而言之，顯著的訂單勢頭、管道改進和客戶贏得的結合推動了我們業務的信心和勢頭的提高。

We expect to grow our backlog in Q3 and are reiterating our 2019 revenue target of $1.3 billion and the expectation of turning cash flow positive in Q4.

我們預計第三季度的積壓訂單會增加，並重申我們 2019 年 13 億美元的收入目標和第四季度現金流轉正的預期。

The benefits of the Coriant acquisition are materializing, and the finalization of integration is now within sight for the New Infinera.

收購 Coriant 的好處正在顯現，對於 New Infinera 來說，整合的最終完成現在指日可待。

We have enhanced customer engagements with larger customers, driving opportunities while we are demonstrating success and driving scale.

我們加強了與更大客戶的客戶互動，在我們展示成功和擴大規模的同時創造了機會。

We are close to completing our integration work.

我們即將完成整合工作。

We'll be in a company position to create profitability and positive cash flow.

我們將處於創造盈利能力和正現金流的公司地位。

And most importantly, we have continued to invest for the future, bringing innovation to the market that should create customer and shareholder value.

最重要的是，我們繼續為未來投資，為市場帶來創新，為客戶和股東創造價值。

I want to thank our employees for their hard work in creating the positive momentum in our business.

我要感謝我們的員工為我們的業務創造積極勢頭所做的辛勤工作。

I'd also like to thank our customers who share our vision and are creating the optical networks of tomorrow.

我還要感謝我們的客戶，他們與我們有著共同的願景並正在創建明天的光網絡。

Now I'd like to hand the call over to Brad for a more thorough review of the financials.

現在我想把電話轉給布拉德，讓他對財務狀況進行更徹底的審查。

Thanks, Tom, and good afternoon, everyone.

謝謝，湯姆，大家下午好。

Today I will discuss our Q2 highlights and provide our outlook for Q3 and the remainder of fiscal 2019.

今天，我將討論我們第二季度的亮點，並提供我們對第三季度和 2019 財年剩餘時間的展望。

The detailed recap of our Q2 results is available in the CFO Comments area on our Investor Relations website.

我們第二季度業績的詳細回顧可在我們的投資者關係網站的首席財務官評論區找到。

Q2 non-GAAP revenue of $307 million represents a 4% sequential increase, coming in towards the upper end of our $290 million to $310 million guidance range.

第二季度非 GAAP 收入為 3.07 億美元，環比增長 4%，接近我們 2.9 億美元至 3.1 億美元指導範圍的上限。

Revenue improved during the quarter due to strength within the ICP vertical as well as with global Tier 1s.

由於 ICP 垂直領域以及全球一級供應商的實力，本季度的收入有所改善。

Our ICP vertical exceeded expectations, driven by a new ICP customer deploying our Groove DCI platform.

在部署我們的 Groove DCI 平台的新 ICP 客戶的推動下，我們的 ICP 垂直領域超出了預期。

This new ICP relationship, which came as a benefit of the Coriant acquisition, contributed to the sizable footprint expansion we experienced during the quarter.

這種新的 ICP 關係是收購 Coriant 的好處，有助於我們在本季度經歷的大規模擴張。

Our Tier 1 strength was fairly broad but was particularly good with our largest North American customer and our largest APAC customer.

我們的一級實力相當廣泛，但對我們最大的北美客戶和我們最大的亞太地區客戶尤其擅長。

During Q2 we won both several new customers and new opportunities with existing customers, and each contributed to strong backlog growth.

在第二季度，我們贏得了幾個新客戶和現有客戶的新機會，每個都為強勁的積壓增長做出了貢獻。

We saw solid demand from a number of customers in North America, including from our largest customer, which represented 13% of total revenue in the quarter as they continue building new routes with us.

我們看到北美許多客戶的強勁需求，包括我們最大的客戶，他們繼續與我們一起建設新航線，佔本季度總收入的 13%。

In addition, our revenue within Lat Am doubled in the quarter as we saw some recovery in spend across this region.

此外，我們在拉丁美洲的收入在本季度翻了一番，因為我們看到該地區的支出有所回升。

As additional color on Tom's commentary about our expanded Tier 1 relationships, 8 of our top 10 customers in the quarter would be considered Tier 1 scale customers.

作為 Tom 關於我們擴大的一級關係的評論的附加顏色，本季度我們前 10 名客戶中的 8 位將被視為一級規模客戶。

We believe that these relationships, along with the new ones we are now creating as a combined company, provides a solid foundation for future growth opportunities.

我們相信，這些關係以及我們作為合併後的公司正在建立的新關係，將為未來的增長機會奠定堅實的基礎。

As we commented on during our last earnings call, we saw a robust pipeline of opportunities in Q2 that we expected would drive growth in the second half.

正如我們在上次財報電話會議上評論的那樣，我們在第二季度看到了大量機會，我們預計這些機會將推動下半年的增長。

The good news is that we were able to convert those opportunities into a strong bookings quarter in Q2, contributing to significant backlog growth entering Q3.

好消息是，我們能夠將這些機會轉化為第二季度強勁的預訂季度，為進入第三季度的顯著積壓增長做出貢獻。

Also of note, following the Coriant acquisition, we have a more diversified customer base.

另外值得注意的是，在收購 Coriant 之後，我們擁有了更加多元化的客戶群。

Our top 10 customers represented 43% of revenue in the second quarter of 2019 as compared to 67% in the year-ago quarter.

我們的前 10 大客戶佔 2019 年第二季度收入的 43%，而去年同期為 67%。

This more diverse customer base allows us to offset continued soft spending within our cable vertical.

這種更加多樣化的客戶群使我們能夠抵消有線電視垂直領域內持續的軟支出。

Non-GAAP gross margin of 30.7% was slightly above the midpoint of our 28% to 32% guidance range.

非 GAAP 毛利率為 30.7%，略高於我們 28% 至 32% 指導範圍的中點。

As we expected going into the quarter, we experienced significant footprint expansion with both existing and new customers.

正如我們預期的那樣進入本季度，我們的現有客戶和新客戶都經歷了顯著的足跡擴張。

As we've stated throughout Infinera's history, this initial footprint often requires an upfront investment that carries lower gross margins.

正如我們在 Infinera 的整個歷史中所說的那樣，這種初始足跡通常需要毛利率較低的前期投資。

However, given the size and scale of many of these customers, these investments typically generate a very strong return once customers expand capacity within these networks, resulting in a significant margin expansion opportunity in the future.

然而，鑑於其中許多客戶的規模和規模，一旦客戶在這些網絡中擴展容量，這些投資通常會產生非常強勁的回報，從而在未來帶來顯著的利潤擴張機會。

Moving now to operating expenses, we continued to make solid progress with our OpEx synergies as Q2 non-GAAP OpEx came in at $132 million compared with our $135 million guidance midpoint and well below the pro forma levels of the combined companies from a year ago.

現在轉向運營支出，我們繼續在運營支出協同效應方面取得穩步進展，因為第二季度非 GAAP 運營支出為 1.32 億美元，而我們的指導中點為 1.35 億美元，遠低於一年前合併後公司的備考水平。

While we take actions to reduce our overall OpEx spend, we are focusing our R&D dollars in areas where we can differentiate and where we see the best opportunity for the company.

在我們採取行動減少總體運營支出的同時，我們將研發資金集中在我們可以差異化以及我們認為對公司來說是最佳機會的領域。

Our ability to differentiate with our solutions has always been a key principle of Infinera.

我們通過我們的解決方案脫穎而出的能力一直是 Infinera 的關鍵原則。

Taking it all together, we had a non-GAAP operating loss of 12% and a non-GAAP net loss of $0.24 per share, both metrics better than our guidance range, although both significantly below our longer-term expectations.

綜合考慮，我們的非 GAAP 運營虧損為 12%，非 GAAP 淨虧損為每股 0.24 美元，這兩個指標都好於我們的指導範圍，儘管都大大低於我們的長期預期。

As we continue to take the key actions necessary to transform the company and benefit from increased scale, we expect financial results will continue to improve.

隨著我們繼續採取必要的關鍵行動來改造公司並從規模擴大中受益，我們預計財務業績將繼續改善。

Turning to the balance sheet, total cash and investments finished the quarter at $140 million.

轉向資產負債表，現金和投資總額在本季度結束時為 1.4 億美元。

The ending cash balance was slightly below our expectations, as we made a decision to invest in working capital to support second half revenue growth and accelerated some integration spending.

期末現金餘額略低於我們的預期，因為我們決定投資營運資金以支持下半年的收入增長並加速一些整合支出。

These impacts were only partially offset by operational outperformance in the quarter.

這些影響僅部分被本季度的出色運營表現所抵消。

These investments in working capital represent the building of a strong asset base, which we expect to benefit our cash position as we work it off over the second half of this year.

這些對營運資金的投資代表了強大資產基礎的建立，我們預計這將有利於我們在今年下半年解決問題時的現金狀況。

In order to provide us the flexibility to absorb working capital fluctuations such as those described above, as we continue to transform the company and pursue large new customer opportunities, last week we closed a $100 million credit facility with Wells Fargo.

為了讓我們能夠靈活地吸收如上所述的營運資金波動，同時我們繼續改造公司並尋求大量新客戶機會，上週我們與富國銀行關閉了 1 億美元的信貸額度。

We believe this facility satisfies our near-term capital needs, although we do have the ability to upsize this facility by $50 million in the future if certain conditions are met and the need arises.

我們相信這個設施可以滿足我們的短期資本需求，儘管如果滿足某些條件並且需要出現，我們確實有能力在未來將這個設施擴大 5000 萬美元。

Turning to the third quarter, we have some important integration milestones which we are closely managing.

談到第三季度，我們有一些重要的整合里程碑，我們正在密切管理這些里程碑。

First off, we are tracking ahead of our financial synergies and are on track to complete the integration by the end of the year, with future synergies to come with vertical integration.

首先，我們正在追踪我們的財務協同效應，並有望在年底前完成整合，未來的協同效應將來自垂直整合。

Second, we have now transitioned our Berlin manufacturing operations to Fabrinet in Thailand.

其次，我們現在已經將柏林的製造業務轉移到泰國的 Fabrinet。

This program is 6 months in the making, and we have a high degree of confidence in Fabrinet's ability to ramp up our products in line with the plan.

該計劃的製定時間為 6 個月，我們對 Fabrinet 能夠按照計劃提升我們的產品的能力充滿信心。

We will continue to closely manage this transition and expect a smooth ramp.

我們將繼續密切管理這一轉變，並期待順利進行。

Third, in early August we went live with a new combined ERP system.

第三，8 月初，我們啟用了新的組合 ERP 系統。

As of today, there have been no major issues, and we expect a smooth transition, though complete validation has not yet been accomplished.

截至今天，還沒有出現重大問題，我們希望順利過渡，但尚未完成完整的驗證。

This is an important step in finalizing the integration, driving synergies and having full financial and operational visibility across the organization.

這是完成整合、推動協同效應以及在整個組織內實現全面財務和運營可見性的重要一步。

Now to our guidance for the third quarter of fiscal 2019.

現在是我們對 2019 財年第三季度的指導。

As mentioned earlier, our Q2 bookings increased materially in the quarter, representing the third consecutive quarter of backlog growth.

如前所述，我們的第二季度預訂量在本季度大幅增加，這是連續第三個季度積壓增長。

As we continue to see a strong pipeline, we expect another solid quarter of bookings in Q3, which would allow us the opportunity to once again build further backlog.

隨著我們繼續看到強大的管道，我們預計第三季度會有另一個穩定的預訂季度，這將使我們有機會再次建立更多的積壓訂單。

For Q3 we currently anticipate non-GAAP revenue of $330 million, plus or minus $10 million.

對於第三季度，我們目前預計非 GAAP 收入為 3.3 億美元，上下浮動 1000 萬美元。

This would represent a 7.5% sequential quarterly increase in revenue.

這意味著收入連續季度增長 7.5%。

Looking at the second half, we expect a continued solid pipeline of opportunities and strong backlog will allow us to reach our $1.3 billion revenue target for the year.

展望下半年，我們預計持續穩固的機會渠道和強勁的積壓將使我們能夠實現今年 13 億美元的收入目標。

On gross margin, we anticipate Q3 to be another quarter of strong footprint deployment with both new and existing customers.

在毛利率方面，我們預計第三季度將是新老客戶的又一個強勁足跡部署季度。

While we have been pleased with the opportunities we are winning, many of these networks take advantage of our unique ability to pre-deploy bandwidth, allowing our customers to react quickly to their customers' demand with our instant bandwidth capability.

雖然我們對贏得的機會感到高興，但其中許多網絡利用我們獨特的預部署帶寬能力，使我們的客戶能夠利用我們的即時帶寬能力對其客戶的需求做出快速反應。

In these cases the initial deployments have a very small percentage of bandwidth activated.

在這些情況下，初始部署激活的帶寬比例非常小。

As a result of these upfront investments, the anticipated gross margin expansion is projected to shift out by a quarter.

由於這些前期投資，預期的毛利率增長預計將提前四分之一。

On the positive side, we have now officially completed the transition of our Berlin manufacturing to Fabrinet, which significantly improves our cost profile and reduces fixed costs.

從積極的方面來看，我們現在已經正式完成了從柏林製造到 Fabrinet 的過渡，這顯著改善了我們的成本狀況並降低了固定成本。

We expect this transition to have a positive impact to margins as 2019 progresses and we begin to sell the lower-cost inventory.

我們預計隨著 2019 年的進展，這一轉變將對利潤率產生積極影響，我們將開始出售成本較低的庫存。

Rolling up the various components, we currently anticipate Q3 non-GAAP gross margin of 32%, plus or minus 200 basis points.

綜合各個組成部分，我們目前預計第三季度非美國通用會計準則毛利率為 32%，上下浮動 200 個基點。

Based on the further benefits from the Berlin manufacturing transition in Q4 and as our product mix begins to level out in the period, we continue to expect non-GAAP gross margin in the mid-30s range for the fourth quarter of this year.

基於第四季度柏林製造業轉型帶來的進一步好處，以及我們的產品組合在此期間開始趨於平穩，我們繼續預計今年第四季度的非 GAAP 毛利率在 30 多歲左右。

Keep in mind that our non-GAAP gross margin in the first quarter of fiscal 2019 was 35.3% and was representative of a more normalized product mix.

請記住，我們在 2019 財年第一季度的非美國通用會計準則毛利率為 35.3%，代表了更加規範化的產品組合。

Since then we have taken multiple actions to lower our cost structure, providing us confidence in our ability to achieve these gross margin levels as we exit the year.

從那時起，我們採取了多項措施來降低我們的成本結構，使我們對在今年結束時實現這些毛利率水平的能力充滿信心。

With regards to operating expenses, we have made tremendous progress with driving down our operating expense levels.

在運營費用方面，我們在降低運營費用水平方面取得了巨大進展。

As mentioned, we have now completed the migration onto one global ERP system, allowing us to further drive efficiencies in the business.

如前所述，我們現已完成向一個全球 ERP 系統的遷移，使我們能夠進一步提高業務效率。

As we still need to stabilize on the new system, we expect only a minor benefit to operating expenses in Q3, leading us to anticipate non-GAAP operating expenses of $130 million, plus or minus $3 million for the quarter.

由於我們仍然需要在新系統上穩定下來，我們預計第三季度的運營費用只會有很小的好處，因此我們預計本季度的非 GAAP 運營費用為 1.3 億美元，上下浮動 300 萬美元。

As we progress into Q4 we expect to be able to drive further expense reductions, allowing us to finish the year in the mid-$120 million range for non-GAAP operating expenses.

隨著我們進入第四季度，我們希望能夠進一步削減費用，使我們能夠在非 GAAP 運營費用的 1.2 億美元範圍內完成這一年。

Putting it all together, we expect a Q3 non-GAAP operating loss of approximately 7% and a bottom line non-GAAP loss of $0.17 per share, plus or minus a couple of cents.

綜上所述，我們預計第三季度非 GAAP 運營虧損約為 7%，非 GAAP 底線虧損為每股 0.17 美元，上下浮動幾美分。

In relation to cash levels in the third quarter of fiscal 2019, as we articulated on our last call, we expect a significantly smaller cash reduction driven by improved operating results and working capital benefits as we utilize the inventory built to support the factory transition.

關於 2019 財年第三季度的現金水平，正如我們在上次電話會議上所闡明的那樣，我們預計，由於我們利用為支持工廠轉型而建立的庫存，經營業績和營運資本收益的改善將推動現金減少幅度顯著減少。

As we move into the fourth quarter, we continue to believe that our improved financial results, fueled by our strong backlog position and diligence on working capital, will lead us to both non-GAAP profitability and cash generation.

隨著我們進入第四季度，我們仍然相信，在我們強大的積壓狀況和對營運資金的勤奮推動下，我們改善的財務業績將使我們實現非 GAAP 盈利和現金產生。

This will be my last earnings call here.

這將是我在這裡的最後一次財報電話會議。

However, I want to reiterate that I continue to be very optimistic about the future of Infinera.

不過，我想重申，我仍然對 Infinera 的未來非常樂觀。

I'm appreciative of the great experience and the committed people I've had the opportunity to work with on this journey, and I believe Infinera is well positioned to complete the transformation that we began with this acquisition.

我很感激在這段旅程中有機會與我共事的豐富經驗和忠誠的人，我相信 Infinera 有能力完成我們從這次收購開始的轉型。

I'm excited to hand the CFO reins to Nancy, as I believe she's the right person to take the company forward, as she brings a strong financial and strategic background along with the hunger and dedication to drive change in the business.

我很高興將首席財務官的職位交給南希，因為我相信她是帶領公司向前發展的合適人選，因為她帶來了強大的財務和戰略背景以及推動業務變革的渴望和奉獻精神。

Thank you for your support over the years.

感謝您多年來的支持。

With that, I will turn the call over to the operator for the Q&A portion of the call.

有了這個，我將把電話轉給接線員進行電話的問答部分。

[Operator Instructions.] Today's first question comes from Rod Hall of Goldman Sachs.

[操作員說明。]今天的第一個問題來自高盛的Rod Hall。

This is Balaji on behalf of Rod.

這是巴拉吉代表羅德。

Congrats on the stabilization in the quarter, and Brad, our best wishes for your next move as well.

祝賀本季度的穩定，布拉德，我們也對你的下一步行動表示最良好的祝愿。

I think my question really is focused on the recent announcement on Acacia's acquisition by Cisco.

我認為我的問題確實集中在思科最近宣布收購 Acacia 的消息上。

Maybe if you want to comment on the state of the merchant solutions and if you think that there's other suppliers available for your future needs and if you want to comment on your own potential to be a merchant supplier.

也許如果你想評論商家解決方案的狀態，如果你認為有其他供應商可以滿足你未來的需求，如果你想評論你自己成為商家供應商的潛力。

Yes.

是的。

So a good question, and we're certainly seeing a lot of interest there.

這是一個很好的問題，我們肯定會看到很多人對此感興趣。

A couple of things.

幾件事。

One, I personally believe this is good for us and it's good for the industry.

第一，我個人認為這對我們和整個行業都有好處。

I know Raj, I know Bill very well.

我認識 Raj，我非常了解 Bill。

I am 100% confident they're going to continue to provide us the technology that we need in the platforms today, and they're going to make available technology if we choose to in the future.

我 100% 相信他們將繼續為我們提供當今平台所需的技術，如果我們將來願意，他們將提供可用的技術。

We have been clear; we will make our own DSPs and optical technology, and we will also buy where it makes commercial sense to do that.

我們已經清楚了；我們將製造我們自己的 DSP 和光學技術，我們還將購買具有商業意義的地方。

And I fully believe that that technology will be available to us.

我完全相信我們將可以使用該技術。

Two, I do think it makes our own strategy around vertical integration, quite frankly, more valuable.

第二，坦率地說，我確實認為它使我們自己圍繞垂直整合的戰略更有價值。

There are fewer choices every day on the market, and I think that this DSP technology and soon to be the optical technology, the value of being able to control that value chain are going to become more appreciated.

市場上的選擇每天都在減少，我認為這種 DSP 技術以及即將成為的光學技術，能夠控制價值鏈的價值將變得更加受到重視。

And I think it underscores some of the basic value and opportunity of Infinera.

我認為它強調了 Infinera 的一些基本價值和機會。

In regard to will we make our technology potentially available to the merchant, 2 quick points.

關於我們是否會將我們的技術潛在地提供給商家，有 2 個要點。

We have been approached in regard to our ICE6 by some people who I think maybe in conjunction with this Acacia-Cisco announcement are now interested in diversifying and looking at other suppliers.

一些人就我們的 ICE6 與我們接洽，我認為他們可能與 Acacia-Cisco 的公告有關，他們現在有興趣多樣化並尋找其他供應商。

I also see that at the point that it's resonating with the market that we are 1 of 2 choices in 800-gig, and lots of people need 800-gig besides the 2 people that are making it.

我還看到，我們是 800-gig 的 2 個選擇之一，這引起了市場的共鳴，而且除了正在製造它的 2 個人之外，還有很多人需要 800-gig。

So people are approaching us to discuss opportunities in DCO.

所以人們正在接近我們討論 DCO 中的機會。

I don't know if anything will materialize, but clearly, it's something directionally that we are going to spend time on.

我不知道是否會實現任何目標，但很明顯，這是我們要花時間做的方向性的事情。

I was very clear on my script that at ECOC, we will discuss where we're heading with our pluggable strategy.

我在我的腳本中非常清楚，在 ECOC，我們將討論我們的可插拔策略的發展方向。

You should pay attention to see how we're planning on commercializing parts of optics and DSP.

你應該注意看看我們計劃如何將光學和DSP部分商業化。

That makes sense.

這就說得通了。

If I could ask just one more question, it was good to see the increased spend with your Tier 1 customer in Mexico.

如果我能再問一個問題，很高興看到您在墨西哥的一級客戶的支出有所增加。

Do you see the Lat Am revenue levels in the quarter as sustainable going forward?

您是否認為本季度拉丁美洲的收入水平可持續發展？

I recognize it's pretty small so it can be lumpy, but just wanted to get your comment on that.

我知道它很小，所以它可能是塊狀的，但只是想听聽您對此的評論。

Yes, I think as a combined company, we have a pretty diverse customer base in Lat Am, and I think there's lots of opportunity there, so I continue to see going forward the opportunity to continue to grow those revenues.

是的，我認為作為一家合併後的公司，我們在拉丁美洲擁有相當多樣化的客戶群，我認為那裡有很多機會，所以我繼續看到繼續增加這些收入的機會。

The large customer that I referenced historically has been quite a large customer and continue -- to see them start to come back with spend would be another nice phenomenon.

我在歷史上提到的大客戶一直是一個相當大的客戶，並且會繼續——看到他們開始回來消費將是另一個很好的現象。

We're also winning new customers in Lat Am.

我們還在拉丁美洲贏得了新客戶。

There's substantial investment happening there, and I think we're well positioned.

那裡正在進行大量投資，我認為我們處於有利地位。

Our next question comes from Jeff Kvaal of Nomura Instinet.

我們的下一個問題來自 Nomura Instinet 的 Jeff Kvaal。

I guess could we begin by talking about what looks beyond the integration a little bit?

我想我們可以先談談集成之外的內容嗎？

It sounds like you're making great progress on putting everything together ahead of schedule.

聽起來您在提前將所有內容放在一起方面取得了很大進展。

Where -- what kind of improvements can we think about for the margin structure once we get beyond the fourth quarter?

在哪裡 - 一旦我們超過第四季度，我們可以考慮對保證金結構進行什麼樣的改進？

And is it possible for us to be talking about a low or even mid-40s number at some point in the future?

我們是否有可能在未來某個時候談論一個低甚至 40 多歲的數字？

Yes.

是的。

That's a great question.

這是一個很好的問題。

So obviously as we continue to take out some fixed costs and exit the year, that is a great accomplishment for the future cost structure, and we're going to continue to work down operating leverage.

所以很明顯，隨著我們繼續拿出一些固定成本並退出這一年，這對未來的成本結構來說是一個巨大的成就，我們將繼續降低運營槓桿。

As we put out, and we've had a very successful quarter, as Tom mentioned, with the Groove platform, which is a compact modular platform going forward, substantial year-over-year growth to 80%, that is a sled-based architecture.

正如我們推出的那樣，我們有一個非常成功的季度，正如 Tom 提到的那樣，Groove 平台是一個緊湊的模塊化平台，向前發展，同比大幅增長 80%，這是一個基於 sled 的平台建築學。

Modular platforms will continue to be sled-based.

模塊化平台將繼續基於雪橇。

As we start to put our own vertically integrated optical technologies, those products themselves increase in their gross margins by 20 to 25 points over what we're seeing today.

隨著我們開始採用我們自己的垂直集成光學技術，這些產品本身的毛利率比我們今天看到的增加了 20 到 25 個百分點。

So where you're seeing a bit of muted margin footprint that's out there today, it's great for us because we're winning new Tier 1s, as Tom said, that are looking for somebody that provides the existing technology today that's unique in their ability to provide 600 gig, which we get a bit of better margin structure.

因此，您看到今天的利潤率有所下降，這對我們來說非常好，因為我們正在贏得新的一級供應商，正如湯姆所說，他們正在尋找能夠提供當今能力獨特的現有技術的人提供 600 gig，我們得到了更好的保證金結構。

And as we get to 800 gig, we will have the industry-leading cost structure.

當我們達到 800 演出時，我們將擁有行業領先的成本結構。

Yes.

是的。

So I agree with everything said.

所以我同意所說的一切。

Nancy's just getting onboard.

南希剛上船。

She'll take over as CFO officially the first part of end of August.

她將於 8 月底正式接任首席財務官一職。

We will plan on having an Analyst Day.

我們將計劃舉辦一個分析師日。

We will update officially kind of our outlook of the business model before the end of the year.

我們將在年底前正式更新我們對商業模式的展望。

We need to give her a chance to get smart on the topic.

我們需要給她機會在這個話題上變得聰明。

Okay.

好的。

And Brad, thank you for all your help over the years.

布拉德，感謝你多年來的幫助。

Our next question today comes from Alex Henderson of Needham.

我們今天的下一個問題來自 Needham 的 Alex Henderson。

I was hoping we could talk a little bit about the 800 gig chipsets.

我希望我們能談談 800 gig 芯片組。

You've obviously now announced that you've finished taping down the ICE6.

你現在顯然已經宣布你已經完成了對 ICE6 的錄音。

Does that increase your expected probability of getting them back without any issues?

這是否會增加您毫無問題地取回它們的預期可能性？

I had been estimating around an 85% probability that when it came back, it would be running well.

我一直在估計大約 85% 的可能性，當它回來時，它會運行良好。

Can you talk about some of the reasons why your success should be better than the problems that both NEL and Nokia appear to have run into on their 600 gig DSPs?

你能談談為什麼你的成功應該比 NEL 和諾基亞在他們的 600 gig DSP 上遇到的問題更好的一些原因嗎？

Yes, I can't speak to the specific challenges they might have had, but I can only tell you this.

是的，我不能說出他們可能遇到的具體挑戰，但我只能告訴你這個。

We are on schedule to our original schedule with our ASIC.

我們的 ASIC 按原計劃進行。

It is nontrivial accomplishment to tape out.

流片是一項非凡的成就。

Our history of taping out and having first silicon is we've never had to completely respin an ASICs, so I have high confidence.

我們流片和擁有第一塊矽的歷史是我們從來沒有完全重新設計過 ASIC，所以我很有信心。

We have never put as much resource or diligence or tools on validating the design as we have this time.

我們從來沒有像這次那樣投入如此多的資源、努力或工具來驗證設計。

We made sure to work with world-class partners in every aspect of the technology going into this.

我們確保在技術的各個方面與世界一流的合作夥伴合作。

We saw that we need to minimize any unnecessary risk wherever we could, so we spent the appropriate money making sure that we were as bulletproof as possible.

我們看到我們需要盡可能地減少任何不必要的風險，所以我們花了適當的錢來確保我們盡可能地防彈。

So I have high confidence.

所以我很有信心。

Second of all, a lot of the technology that's in ICE6 is actually not the first time we're bringing that technology to market.

其次，ICE6 中的許多技術實際上並不是我們第一次將該技術推向市場。

We've been doing subcarriers for a long time.

我們做子載波已經很長時間了。

We have been doing probabilistic shaping.

我們一直在做概率整形。

We have been doing SD-FEC gain sharing.

我們一直在做SD-FEC增益共享。

The values that enhance the performance of optical, we are taking them to next generation.

提高光學性能的價值，我們正在將它們帶到下一代。

This isn't first generation for us, and I think that that will be an advantage moving forward.

這對我們來說不是第一代，我認為這將是一個前進的優勢。

But Alex, having said that, until it comes back in October and it works, it doesn't work, so I'm going to keep my fingers crossed.

但是亞歷克斯，話雖如此，直到它在 10 月回來並且它起作用，它才不起作用，所以我會保持祈禱。

I have high expectations.

我有很高的期望。

Have you guys heard or talked to anybody that is familiar with the -- whether Ciena's taped down yet or whether -- where their 800-gig chip is?

你們有沒有聽說過或與任何熟悉的人交談過——無論 Ciena 是否已經錄音或是否——他們的 800 兆芯片在哪裡？

Because we haven't been able to find anybody who suggests that they've already seen this product in the field in any form or fashion.

因為我們無法找到任何人表示他們已經以任何形式或方式在現場看到過該產品。

I'm a little concerned that they're suggesting that it's available so soon when I can't find evidence of it.

我有點擔心，當我找不到它的證據時，他們暗示它很快就會可用。

Have you heard any evidence of that being in the field?

您是否聽說過該領域的任何證據？

No, we're not -- Alex, we're extremely focused on our own execution there.

不，我們不是——亞歷克斯，我們非常專注於我們自己在那裡的執行。

And I'd add to Tom's comments, it's not only on the DSP, but last year at ECOC with our PIC, our ICE6, which is our sixth generation of doing this, and it gets harder to marry that photonic integration with the DSP every generation, we demonstrated over a terabit per wave capacity, and it's over 100-gigabaud at 64 QAMs.

我想補充一下 Tom 的評論，它不僅在 DSP 上，而且去年在 ECOC 上我們的 PIC，我們的 ICE6，這是我們這樣做的第六代，並且越來越難將光子集成與 DSP 結合起來一代，我們展示了超過 TB 的每波容量，並且它在 64 QAM 時超過 100 千兆波特。

So we've actually provided to the industry almost a year ago our operating results in open transparency.

因此，我們實際上在將近一年前就以公開透明的方式向行業提供了我們的運營結果。

The PIC is ready to go.

PIC 已準備就緒。

The DSP is taped out.

DSP 已流片。

That's what we're focused on, on getting to market.

這就是我們關注的重點，即進入市場。

So everybody else is very focused on the race between us and Ciena.

所以其他人都非常關注我們和 Ciena 之間的比賽。

All I know is this is our sixth time to bat, and the market of 2 isn't much better than a market of 7 or 8. So…

我所知道的是這是我們第六次擊球，2 的市場並不比 7 或 8 的市場好多少。所以......

Our next question today comes from George Notter of Jefferies.

我們今天的下一個問題來自 Jefferies 的 George Notter。

Brad, best of luck.

布拉德，祝你好運。

I guess -- I do have some, I guess, balance sheet-driven questions here.

我想 - 我想我確實有一些資產負債表驅動的問題。

Can you help us just understand kind of where we are in the restructuring efforts just in terms of the costs?

您能否幫助我們僅從成本方面了解我們在重組工作中所處的位置？

I think if I go back to the announcement of the Coriant deal or maybe soon thereafter, you guys talked about a $75 million to $80 million total cost on cash restructuring.

我想，如果我回到 Coriant 交易的公告或者此後不久，你們談到了 7500 萬至 8000 萬美元的現金重組總成本。

How much of that is behind you at this point and how much of it is still in front of us?

此時有多少已經在你身後，還有多少還在我們面前？

And then…

進而…

Yes, so George, we still have another quarter in Q3 of higher levels of spend around integration.

是的，所以喬治，我們在第三季度還有另一個季度的更高水平的集成支出。

As we get into Q4, it drops down pretty significantly.

當我們進入第四季度時，它會顯著下降。

And then as David mentioned, expect to ramp the initial -- or ramp down and complete the initial integration.

然後正如 David 提到的那樣，預計會增加初始 - 或者減少並完成初始集成。

So basically, you've got one more quarter left of heightened spend and then it drops off pretty significantly in the fourth quarter.

所以基本上，你還有四分之一的支出增加，然後在第四季度大幅下降。

The integration costs, George, are roughly what we had said, so in that same ballpark.

喬治，整合成本大致就是我們所說的，所以在同一個球場。

And as Brad said, they ramp off dramatically in Q4.

正如布拉德所說，他們在第四季度急劇下降。

Q3 is about the same as Q2 was from an integration cost perspective.

從集成成本的角度來看，第三季度與第二季度大致相同。

Got it.

知道了。

Okay.

好的。

Fair enough.

很公平。

And then if I just look at the cash quarter-on-quarter, $140 million this quarter, it feels like there's quite a few moving parts in that number.

然後，如果我只看季度環比現金，本季度為 1.4 億美元，感覺這個數字中有相當多的變動部分。

I'm hoping you can walk me through some of those.

我希望你能引導我完成其中的一些。

So for example, there was, I think, an issue with a customer outage that may have affected cash.

因此，例如，我認為存在可能影響現金的客戶中斷問題。

I think there was a legal settlement you referenced in the CFO commentary.

我認為您在首席財務官的評論中提到了一項法律解決方案。

I know in prior quarters there's been some factoring.

我知道在前幾個季度有一些因素。

But can you walk us through those moving parts and kind of give me a sense for how much cash was burned, I guess, organically in a sense Q-on-Q?

但是，您能否帶我們了解一下這些活動部件，讓我了解燒掉了多少現金，我想，在某種意義上 Q-on-Q 是有機的？

Yes.

是的。

So George, overall the majority of the burn is just the cash from operations that, as we've said, will continue to drop off, will get lower in Q3 and then flip to positive in Q4.

所以喬治，總的來說，大部分的消耗只是來自運營的現金，正如我們所說的那樣，這些現金將繼續下降，將在第三季度下降，然後在第四季度轉為正值。

The increase in Q2 was really a strategic decision we made to pay ahead some prepaid to some of our contract manufacturers, build some inventory to make sure we can meet the demand for the second half.

第二季度的增長實際上是我們做出的一項戰略決定，即提前向我們的一些合同製造商支付一些預付款，建立一些庫存以確保我們能夠滿足下半年的需求。

So working capital hurt us to the tune of about $20 million.

因此，營運資金使我們損失了大約 2000 萬美元。

We also increased the integration costs so that we could accelerate it and get the benefits in the P&L faster.

我們還增加了集成成本，以便我們可以加速集成並更快地獲得損益收益。

Those are the biggest moving parts.

這些是最大的移動部件。

Yes.

是的。

I would just add that the delta versus expectation was the decision we made to increase working capital associated with the integration and with the stronger second half booking and transformation work that we're doing as we move the Berlin facility to give our customers smooth delivery of those higher bookings.

我只想補充一點，與預期相比，增量是我們做出的增加與整合相關的營運資金的決定，以及我們在搬遷柏林工廠時正在做的更強大的下半年預訂和轉型工作，以便為我們的客戶順利交付那些更高的預訂。

One of the things that might not be well understood, that certain optical components are, quite frankly, on allocation, and it's a challenge to make sure you have sufficient supply.

可能不太了解的一件事是，坦率地說，某些光學元件正在分配中，確保您有足夠的供應是一項挑戰。

So as you have a ramping environment, it's pretty important for us to make sure we have the supply covered.

因此，由於您有一個漸進的環境，因此確保我們有足夠的供應對我們來說非常重要。

And our next question today comes from Christian Schwab of Craig-Hallum Capital Group.

我們今天的下一個問題來自 Craig-Hallum Capital Group 的 Christian Schwab。

Brad, good luck on whatever is next in your journey.

布拉德，祝你接下來的旅程一切順利。

My question has to do with, Tom, you were kind of first a few quarters ago to kind of mention traveling across, in particular Europe at the time, that there was tremendous interest in people seeking alternatives to Huawei, which would lead to future business, but all telecom narratives usually move a little bit slow.

我的問題與湯姆有關，你在幾個季度前首先提到穿越，特別是當時的歐洲，人們對尋求華為的替代品非常感興趣，這將帶來未來的業務，但所有電信的敘述通常都會有點慢。

Now that you've kind of seen your first Huawei replacement in Asia, can you give us an update on kind of a multiyear outlook and possibly give us any idea of the magnitude of the opportunity you may have?

既然您已經在亞洲看到了您的第一個華為替代品，您能否向我們介紹一下多年展望的最新情況，並可能讓我們了解您可能擁有的機會有多大？

Well, as you pointed out, the telcos move at a fairly methodical cadence.

好吧，正如您所指出的，電信公司的發展節奏相當有條不紊。

I believe that the trend is set and there's going to be increasing decisions made to minimize the risk.

我相信趨勢已經確定，並且將會做出越來越多的決策以將風險降至最低。

There's a number of factors, as I said in my script.

正如我在劇本中所說，有很多因素。

Some of it's political, some of it's continuity of supply, some of it's national security.

其中一些是政治問題，一些是供應的連續性，一些是國家安全。

Some of it, quite frankly, comes from customer pressure.

坦率地說，其中一些來自客戶的壓力。

There's a number of customers, some of the ICPs, who will not allow their traffic to be carried across Chinese gear.

有許多客戶，其中一些是 ICP，他們不允許他們的流量通過中國設備傳輸。

So if that becomes more of a mainstay, there are fewer and fewer telephone companies or telephony companies, people carrying Internet traffic.

因此，如果這成為更多的支柱，那麼承載互聯網流量的電話公司或電話公司就會越來越少。

There are going to be 2 using the Chinese gear.

將有 2 個使用中國裝備。

I think all of these things play, and all of them are actually causing people to second-guess the presence of that level of investment they have in their network.

我認為所有這些事情都在起作用，而且所有這些實際上都讓人們重新猜測他們在網絡中所擁有的那種投資水平。

And I think that we've won the first one.

我認為我們贏得了第一個。

I think that we will win more over time, but it's going to be, I think, relatively slow.

我認為隨著時間的推移我們會贏得更多，但我認為它會相對緩慢。

I do see, quite frankly, Huawei countering pretty hard in regard to making billion-dollar investments in a number of countries to balance this out.

坦率地說，我確實看到華為在一些國家進行數十億美元的投資以平衡這一點方面進行了相當大的反擊。

So this is in no way, shape or form done, but I do believe that the direction forward is more pressure will be applied to people who are delivering the gear from China, and it's an opportunity for us.

所以這絕不是形狀或形式完成的，但我確實相信前進的方向是對從中國運送裝備的人施加更多壓力，這對我們來說是一個機會。

Great.

偉大的。

And then my last question has to do with you guys being approached by customers for your ICE6 technology.

然後我的最後一個問題與客戶接觸你們的 ICE6 技術有關。

Can you quantify, should any of those customers actually lead to design wins or use of your product, is there any way for you to give us an idea of the revenue opportunity that could be there over time?

您能否量化，如果這些客戶中的任何一個實際上導致設計獲勝或使用您的產品，您是否有任何方式讓我們了解隨著時間的推移可能存在的收入機會？

Yes, so it's probably early innings for us to be talking about that.

是的，所以我們談論這個可能還為時過早。

We certainly have the capability, as Tom mentioned.

正如湯姆所說，我們當然有能力。

The Cisco acquisition of Acacia shows the valuation that we have for our DSP and vertical integration, given we build similar DCOs for our product line that are a substantial portion of the shipping volume of what Acacia ships.

思科對 Acacia 的收購顯示了我們對 DSP 和垂直整合的估值，因為我們為我們的產品線構建了類似的 DCO，這些產品線佔 Acacia 出貨量的很大一部分。

But it's a little early for us to talk about.

但現在談這個還為時過早。

And as we said, as Nancy gets on board and we look at our long-term model with the second phase of vertical integration, and this is a potential, we'll be able to reveal a bit more.

正如我們所說，隨著 Nancy 的加入，我們將審視我們的長期模型和垂直整合的第二階段，這是一種潛力，我們將能夠揭示更多。

Our next question comes from Tim Savageaux of Northland Capital Markets.

我們的下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

A couple of questions.

幾個問題。

First one would be on the cable front.

第一個將在電纜前端。

You did see what looks to be a pretty steep sequential decline in Q2.

你確實看到了第二季度看起來相當陡峭的環比下降。

However, if you look at what the operators are saying and doing with regard to their second half capital budgets as well as some equipment suppliers with similar exposure to some of your major customers, that does seem to be turning a bit in the second half.

然而，如果你看看運營商關於下半年資本預算的說法和做法，以及一些與你的一些主要客戶有類似接觸的設備供應商，你就會發現下半年情況似乎確實有所轉變。

I wonder if you have any visibility to cable as a vertical bottoming in Q2 and whether you see any rays of light in terms of resumption in spending in the second half.

我想知道您是否能看到電纜作為第二季度的垂直底部，以及您是否看到下半年恢復支出方面的任何曙光。

And I have a follow-up.

我有一個後續行動。

In regard to cable bottoming, I'm going to rely, quite frankly, on what the industry talks about as we look at CapEx numbers, et cetera.

關於電纜觸底，坦率地說，我將依賴行業在我們查看資本支出數字等時談論的內容。

And I think that could be happening.

我認為這可能正在發生。

We have a range of cable customers.

我們有一系列電纜客戶。

Some of them are investing more, and some of them are investing less.

他們中的一些人投資更多，而另一些人則投資更少。

The one I think you're probably referring to is the one that came down for us significantly.

我認為您可能指的是對我們來說意義重大的那個。

Candidly, we are not putting anything really in Q3 and a very, very muted amount in the rest of the year, and we're going to wait for a recovery.

坦率地說，我們並沒有在第三季度真正投入任何資金，在今年剩餘時間裡投入的資金也非常非常少，我們將等待復甦。

It's very dangerous to take broad, general things and apply them to a specific scenario.

將廣泛的、籠統的東西應用到特定場景中是非常危險的。

Everybody will have a different scenario of how much inventory do they have in their warehouses, et cetera.

每個人都會對他們的倉庫中有多少庫存等有不同的看法。

So I would encourage caution on taking an industry dynamic and applying it to any specific customer scenario.

因此，我鼓勵謹慎對待行業動態並將其應用於任何特定的客戶場景。

Very good, and you're, as you just stated, not really building any of that into Q3 or the second half?

非常好，正如您剛才所說，您並沒有真正在第三季度或下半年構建任何內容？

Correct.

正確的。

We're taking a conservative approach and we're hoping to be pleasantly surprised.

我們正在採取保守的方法，我們希望能有驚喜。

And one question, if I could, on back on the Huawei replacement situation.

還有一個問題，如果可以的話，關於華為的更換情況。

I wonder if you can describe the specifics of that -- not in terms of the customer, of course -- but in terms of the sales cycle, whether that was right in the wake of the ban, just something where the overall political pressure that's been mounting over the last year -- describe how long that took to go from initial inquiry to close.

我想知道你是否可以描述具體細節——當然不是從客戶的角度——而是從銷售週期的角度，在禁令之後是否正確，只是整體政治壓力的地方在過去的一年裡一直在增加——描述從最初的調查到結束所花的時間。

Yes, this is a -- it's a PTT in Asia, so it's a significant potential customer.

是的，這是 - 這是亞洲的 PTT，因此它是一個重要的潛在客戶。

It is a customer that the Coriant side of the house had actually been working on for a couple of years, so this is not like all of a sudden this new pressure came out and they did an RFQ.

Coriant 方面實際上已經為一個客戶工作了幾年，所以這並不是突然間出現了新的壓力，他們做了一個 RFQ。

This is a relationship that's been being worked for a long time.

這是一種長期有效的關係。

I think that the opportunity to have an alternative to Huawei presented as an opportunity to expand as an initial new vendor, and what I get excited about is these PTTs never pick somebody for one deal.

我認為，有機會替代華為，是作為最初的新供應商進行擴張的機會，令我興奮的是，這些 PTT 從來沒有為一筆交易挑選某人。

We have our first deal with them; it's a nontrivial deal, but it's not going to change the company's landscape.

我們與他們進行了第一次交易；這是一筆不小的交易，但不會改變公司的格局。

But the opportunity to become a significant supplier over time is real, and I think that this is a meaningful direction and it's a meaningful opportunity.

但隨著時間的推移成為重要供應商的機會是真實的，我認為這是一個有意義的方向，也是一個有意義的機會。

But I don't want you to think that this new political pressure caused them to send out an RFQ in response.

但我不希望您認為是這種新的政治壓力導致他們發出 RFQ 作為回應。

It's been a relationship in development for a couple of years.

幾年來，這種關係一直在發展。

Yes, just to add a little bit that jumps onto the Huawei piece, as we look at these Tier 1s, and as Brad mentioned, we lay out that footprint expansion with Tier 1s, I think part of the strategic logic of the Coriant acquisition was our expansion globally and to diversify the network.

是的，只是為了增加一點跳到華為的部分，當我們看到這些一級時，正如布拉德提到的那樣，我們用一級來佈局足跡擴張，我認為收購 Coriant 的戰略邏輯的一部分是我們的全球擴張和網絡多元化。

And as Brad mentioned, moving from 67% top 10 to 43% further diversifies us.

正如 Brad 所提到的，從前 10 名的 67% 增加到 43% 進一步使我們多樣化。

But these PTTs and Tier 1s do take time.

但這些 PTT 和 Tier 1 確實需要時間。

We have been pleasantly surprised that we've closed 7 Tier 1s and new PTT opportunities since the beginning of this year in 2019.

自 2019 年年初以來，我們已經關閉了 7 個一級和新的 PTT 機會，這讓我們感到驚喜。

So it doesn't happen quickly, so we are not pounding our chest here, but it does give us ample opportunity to be able to scale those opportunities for both revenue as well as very important gross margin growth.

所以它不會很快發生，所以我們不會在這裡搥胸頓足，但它確實給了我們足夠的機會來擴大這些機會，以實現收入和非常重要的毛利率增長。

Thanks very much and all the best to Brad.

非常感謝布拉德，祝他一切順利。

Our next question today comes from Michael Genovese of MKM Partners.

我們今天的下一個問題來自 MKM Partners 的 Michael Genovese。

Two questions.

兩個問題。

First, on 600G, just where were we in the quarter?

首先，關於 600G，我們在本季度的表現如何？

Was it mostly orders and what level of orders?

主要是訂單嗎？訂單的級別是多少？

And were there any revenues at all for 600G, and what do you expect the second half to look like for that technology?

600G 是否有任何收入，您預計該技術下半年會是什麼樣子？

Yes, there were orders -- 1 physical order, 5 commits.

是的，有訂單——1 個實際訂單，5 個提交。

I still believe 600-gig is going to be a very significant technology adopted into the market, and it's got to be differentiated around how many did you sell versus how many are making a decision on your platform based on your technology road map?

我仍然相信 600-gig 將成為市場採用的一項非常重要的技術，並且必鬚根據您的技術路線圖區分您售出的數量與有多少人在您的平台上做出決定？

200-gig today, 600-gig today, 800-gig tomorrow.

今天 200 演出，今天 600 演出，明天 800 演出。

We have a number of Groove wins that are rolling out 200-gig today with an expected upgrade path to go to 600-gig at the beginning of next year.

我們有許多 Groove wins 今天正在推出 200-gig，預計在明年年初升級到 600-gig。

That's why they picked the Groove.

這就是他們選擇 Groove 的原因。

So I actually believe that we will absolutely get revenue this year, but the revenue ramp will be next year.

所以我實際上相信我們今年絕對會獲得收入，但收入增長將在明年。

But the decisions are being made based upon the road map of 600-gig and 800-gig availability.

但決策是根據 600 兆和 800 兆可用性的路線圖做出的。

The 600-gig is simple.

600-gig 很簡單。

It offers lower dollar per bit than alternatives on the market today, and that's what customers want, but they have a long certification cycle.

與當今市場上的替代品相比，它提供的每比特美元成本更低，這正是客戶想要的，但他們的認證週期很長。

They're going to do it when their network planning cycle is appropriate, and I see most of the people we're talking to planning for the first half of next year for big installs.

當他們的網絡規劃週期合適時，他們會這樣做，我看到我們正在與之交談的大多數人計劃明年上半年進行大型安裝。

The nice piece in that Groove platform and the compact modular space, which we're #2 now in the market with the aspiration to be #1 is, again, the Groove is in a real groove here in terms of its ability to offer the 200-gig, 600-gig, and then that platform architecture moving forward to 800-gig at the lowest cost per bit.

Groove 平台和緊湊的模塊化空間中的優秀作品，我們現在在市場上排名第二，並希望成為第一名，再一次，Groove 在提供能力方面處於真正的最佳狀態200-gig、600-gig，然後該平台架構以最低的每比特成本發展到 800-gig。

So it's been a real vehicle to get insertion opportunities into these Tier 1s, into these ICPs, that when they scale, they go fast and hard.

因此，它是一個真正的工具，可以將插入機會插入到這些 1 層中，插入到這些 ICP 中，當它們擴展時，它們會快速而艱難地進行。

Okay.

好的。

Great.

偉大的。

And second question.

第二個問題。

Brad, I guess you're shifting out the GMs by quarter, when they're going to go up to mid-30s.

布拉德，我猜你是按季度換掉 GM，那時他們將上升到 30 多歲。

What's the chance of them shifting out again?

他們再次搬出去的可能性有多大？

It seems like they could shift out again for either good or bad reasons, right?

似乎他們可以出於好或壞的原因再次轉移，對吧？

It could be that we get so many new orders that they're going to stay down here for yet another quarter.

可能是我們收到了太多新訂單，他們將在這裡再呆一個季度。

But how confident are you in these fourth quarter mid-40s -- sorry, mid-30s -- which seem important to get to breakeven or above?

但是你對第四季度 40 多歲——抱歉，30 多歲——這似乎對實現盈虧平衡或以上很重要有多大信心？

What's your level of confidence they won't shift out again?

您對他們不會再次轉移的信心有多大？

Yes, so Mike, you are right that the reason they declined in Q2 was a very good reason.

是的，邁克，你是對的，他們在第二季度下降的原因是一個很好的理由。

That's a great opportunity for us and for our shareholders.

這對我們和我們的股東來說都是一個很好的機會。

If you look at the different components to the increase in margin over the second half of the year and especially into Q4, one is a mix shift, which we -- you shouldn't read it as though we don't expect to be still growing footprint in the fourth quarter.

如果你看看下半年利潤率增長的不同組成部分，尤其是第四季度，一個是混合轉變，我們——你不應該把它讀成好像我們不希望保持不變第四季度增長的足跡。

But what generally happens is there's more year-end money, which tends to be licenses.

但通常會發生的情況是年終資金更多，這往往是許可證。

There's less new networks that are built in the fourth quarter.

第四季度新建的網絡較少。

We will have the benefits, the full benefits of Berlin, the full benefits of all the fixed costs we're taking out.

我們將得到好處，柏林的全部好處，我們正在削減的所有固定成本的全部好處。

And the reason I gave the metric around Q1 is Q1, before we did all these cost reductions, we hit those same mid-30s gross margins.

我在第一季度給出指標的原因是第一季度，在我們進行所有這些成本削減之前，我們達到了同樣的 30 年代中期毛利率。

So things happen in the market, but I am confident that we have a great opportunity to go meet those numbers.

所以市場上發生了一些事情，但我相信我們有很好的機會去達到這些數字。

Great.

偉大的。

Brad, we're going to miss you.

布拉德，我們會想念你的。

And our next question today comes from Meta Marshall of Morgan Stanley.

我們今天的下一個問題來自摩根士丹利的元馬歇爾。

I wonder if you could just describe the relationship that took place with the new ICP.

我想知道您是否可以描述一下與新 ICP 之間的關係。

You mentioned it was a new Groove customer, but that that relationship may have come through Coriant.

你提到它是一個新的 Groove 客戶，但這種關係可能是通過 Coriant 建立的。

So just background on that new customer win.

所以只是贏得新客戶的背景。

And then just what you're seeing as far as time lines of maybe past Cloud Express customers and how long it's taking them in the testing process as they look at Groove.

然後就您所看到的可能過去的 Cloud Express 客戶的時間線而言，以及他們在查看 Groove 時在測試過程中花費了多長時間。

So a couple of things, Meta.

所以有幾件事，Meta。

One, the Groove was brought to us with Coriant.

第一，Groove 是 Coriant 帶給我們的。

What was interesting is that when we announced the acquisition, they actually took the Groove product out of their lab and said, “We're going to wait until we feel comfortable with this acquisition before we go and recertify it.” After we got the acquisition accomplished, they put it back into their lab and retested it and certified it.

有趣的是，當我們宣布收購時，他們實際上將 Groove 產品從他們的實驗室中取出並說：“我們將等到我們對此次收購感到滿意後再去重新認證它。”在我們完成收購後，他們將其放回實驗室並重新測試並認證。

So it's been actually a really great validation that they are comfortable with both the technology and the combined entity, that the Groove is a platform that we are going to continue to invest in.

所以這實際上是一個非常好的驗證，他們對技術和合併後的實體感到滿意，Groove 是一個我們將繼續投資的平台。

They made the decision probably at the beginning of Q2 and we started shipping in Q2 in fairly significant volumes, and we see a very, very nice pipeline of opportunities for this platform right now, doing data center interconnect.

他們可能在第二季度初做出了決定，我們在第二季度開始以相當大的數量出貨，我們看到這個平台現在有非常非常好的機會管道，可以進行數據中心互連。

But they're also now talking to us about other opportunities and other platforms.

但他們現在也在與我們討論其他機會和其他平台。

So I'm excited about that overall platform, and I think that they will probably be one of the customers that upgrade to 600 gig in the first half of next year.

所以我對這個整體平台感到興奮，我認為他們可能會成為明年上半年升級到 600 gig 的客戶之一。

The second question, how long will it take for CX customers to migrate?

第二個問題，CX客戶遷移需要多長時間？

You're presuming that all the CX customers are going to migrate.

您假設所有 CX 客戶都將遷移。

Some of them will, some of them won't.

有些會，有些不會。

We still offer the CX2.

我們仍然提供 CX2。

We still offer the XT-3300 and we offer the Groove today and each is, quite frankly, preferred by some customers.

我們仍然提供 XT-3300，我們今天提供 Groove，坦率地說，每一種都受到一些客戶的青睞。

Clearly, the growth of the company is moving to the Groove.

顯然，公司的成長正在走向Groove。

And our next question today comes from Simon Leopold of Raymond James.

我們今天的下一個問題來自 Raymond James 的 Simon Leopold。

A couple of things I wanted to check on.

我想檢查幾件事。

You did indicate that you expect to generate cash from operations in the fourth quarter, which would of course imply that you expect to burn cash in the third quarter.

您確實表示您希望在第四季度從運營中產生現金，這當然意味著您希望在第三季度消耗現金。

If we just think about the midpoint of your guidance, could you give us some sense of how much cash you anticipate burning, whether there's any one-time items in there or something we should be conscious of?

如果我們只考慮你的指導意見的中點，你能否告訴我們你預計會燒掉多少現金，裡面是否有任何一次性物品或我們應該注意的事情？

Yes, so the expectation for Q3, Simon, is $20 million to $30 million overall cash reduction in the quarter.

是的，所以西蒙對第三季度的預期是本季度總現金減少 2000 萬至 3000 萬美元。

Great.

偉大的。

That's very helpful.

這很有幫助。

And you had a GAAP/non-GAAP difference in revenue.

而且您的收入存在 GAAP/非 GAAP 差異。

It sounds like you had a credit you provided to a customer from something last year.

聽起來您從去年的某件事中獲得了向客戶提供的信用。

I don't quite understand that.

我不太明白。

Could you explain what happened there?

你能解釋一下那裡發生了什麼嗎？

Yes.

是的。

So we had a discussion with the customer this quarter.

所以我們在本季度與客戶進行了討論。

They had to compensate some of their end customers.

他們不得不補償一些最終客戶。

We agreed to reimburse them for those warranty costs.

我們同意償還他們的保修費用。

That will be given to them in the form of credits over time.

隨著時間的推移，這將以學分的形式提供給他們。

Great.

偉大的。

Appreciate that.

感謝。

And Brad, I just want to thank you for your help and wish you best of luck.

布拉德，我只想感謝你的幫助，祝你好運。

Thanks a lot.

多謝。

Our next question today comes from John Marchetti of Stifel.

我們今天的下一個問題來自 Stifel 的 John Marchetti。

Last quarter, Tom, you talked about an Asian customer who delayed some of those orders, that you took it out of the book because you weren't sure how that looked.

上個季度，湯姆，你談到了一位亞洲客戶延遲了其中一些訂單，你把它從賬本上刪掉了，因為你不確定那看起來怎麼樣。

But just curious where that stands now, if that was behind some of the APAC strength in this current quarter and if it's in there for the second half of the year.

但只是好奇現在的情況，這是否是本季度亞太地區實力的背後原因，以及今年下半年是否存在。

And then secondarily, last quarter there seemed to be a lot of excitement or enthusiasm around the subsea market.

其次，上個季度海底市場似乎充滿了興奮或熱情。

Didn't hear much of that during your comments today.

在您今天的評論中沒有聽到太多這樣的內容。

Was just curious if you could characterize what you're seeing in that market as we look out in the second half of the year.

只是好奇您是否可以描述我們在今年下半年看到的市場情況。

Yes, so 2 things.

是的，所以有兩件事。

In regard to the Asia customer that we pulled out of Q1 and then did not put in Q2, we are also not contemplating it in our Q3 guidance or Q4 guidance.

關於我們從第一季度退出然後沒有投入第二季度的亞洲客戶，我們也沒有在我們的第三季度指南或第四季度指南中考慮它。

We still think it's an opportunity.

我們仍然認為這是一個機會。

My bet is it does come in, but there are some issues around it that make us too uncomfortable to commit to it at this point.

我敢打賭，它確實會出現，但圍繞它存在一些問題，讓我們在這一點上感到不舒服，無法承諾。

So I'm going to wait and watch and work to continue to have the opportunity.

所以我會等待、觀察和工作，以繼續有機會。

If they do build the network, it's ours, I'm sure.

如果他們確實建立了網絡，那是我們的，我敢肯定。

But it's become a big enough question mark that I'm not going to contemplate it in the outlook.

但它已經成為一個足夠大的問號，我不會在前景中考慮它。

But my view is there's a reasonable likelihood that it would occur sometime this year.

但我的觀點是，它很可能會在今年某個時候發生。

In regard to subsea, kind of my error on really not talking about it.

關於海底，我的錯誤是真的沒有談論它。

Brad talked about it a bit in his script.

布拉德在他的劇本中談到了一點。

We had a very strong bookings quarter in Q2, particularly with ICE4.

我們在第二季度的預訂季度非常強勁，尤其是 ICE4。

ICE4 continues to lead the industry in spectral efficiency.

ICE4 在頻譜效率方面繼續引領行業。

It's, quite frankly, what a lot of subsea decisions are made around.

坦率地說，許多海底決策都是圍繞這一點做出的。

We got our consortium PO in Q2, which was a substantive win, both from the technology.

我們在第二季度獲得了我們的財團 PO，這是技術上的實質性勝利。

It's a win from the deployment across a number of routes that will happen over the next 3 quarters.

這是未來 3 個季度將在多條路線上部署的勝利。

It's -- one of the challenges of winning at a scale of this size is between the time we get the PO and ship it and then recognize revenue, that's part of the gap between revenue recognition that causes a little bit of a challenge for us, why we have to make an investment in inventory because that inventory is ours until they allow us to invoice it, and they don't allow us to invoice it until they have it up and running and tested.

這是 - 在這種規模的規模上獲勝的挑戰之一是在我們獲得 PO 和運送它然後確認收入之間，這是收入確認之間的差距的一部分，這給我們帶來了一些挑戰，為什麼我們必須對庫存進行投資，因為在他們允許我們開具發票之前，該庫存是我們的，並且在他們啟動、運行和測試之前，他們不允許我們開具發票。

But it's a huge win because the consortium has a number of Tier 1s that we want to do business with, and we had them all here a few weeks ago, and we're going to use that as an opportunity to go on a calling card.

但這是一個巨大的勝利，因為該財團有許多我們想與之開展業務的一級供應商，幾週前我們就把他們都聚集在這裡了，我們將以此為契機繼續製作名片.

We continue to win subsea in ICP and we continue to see the ICP space be a hotbed for subsea activity.

我們繼續在 ICP 中贏得海底，我們繼續看到 ICP 空間成為海底活動的溫床。

So overall, I am still very excited about subsea.

所以總的來說，我對海底仍然很興奮。

And I'll tell you, when I talk about people looking at technology generations, the people who look at subsea are the ones who probably poke at technology generation the hardest, because what they're looking for is constantly improving dollar per bit, lock per bit, and the reach that a bit can go.

我會告訴你，當我談到關注技術世代的人時，關注海底的人可能是最努力研究技術世代的人，因為他們正在尋找的是不斷提高每比特美元，鎖定每一點，以及一點可以到達的範圍。

They are really pushing it hard.

他們真的很努力。

And that's where I think our ICE6 positions us very well, selling what we have today but also selling the promise of our capabilities as we go deep dive into what our performance of ICE6 is with them.

這就是我認為我們的 ICE6 非常適合我們的地方，銷售我們今天擁有的東西，但也銷售我們的能力承諾，因為我們深入了解我們的 ICE6 性能與他們的關係。

Our next question comes from Samik Chatterjee of JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

I just wanted to start off with the ICP revenues, if I could.

如果可以的話，我只想從 ICP 收入開始。

Brad, you saw a sequential improvement in the revenues from Q1 to Q2, I think $20 million to $29 million, roughly.

布拉德，你看到第一季度到第二季度的收入連續增長，我認為大約是 2000 萬到 2900 萬美元。

Can you help us with how much of that was attributable to the new ICP that you started to ship to, and also how you're thinking about kind of the ramp in revenues with ICPs for the remainder of the year.

您能否幫助我們了解其中有多少歸因於您開始運送到的新 ICP，以及您如何考慮今年剩餘時間 ICP 收入的增長情況。

Particularly, are you continuing to expect a ramp with the new customer that you're now shipping to?

特別是，您是否繼續期待與您現在要運送給的新客戶的增長？

Yes, so Samik, the majority of the growth in the quarter was that new customer and that was their initial ramp.

是的，所以 Samik，本季度的大部分增長都是新客戶，這是他們最初的增長。

We expect them to continue to ramp as the year goes on.

隨著時間的推移，我們預計它們將繼續增加。

They would actually have liked to us have shipped more in the quarter, so we actually built some backlog with that customer.

他們實際上希望我們在本季度出貨更多，所以我們實際上與該客戶建立了一些積壓。

So expect them to continue to grow, not only through the course of the year, but as Tom mentioned, I think the opportunity with that customer is significant.

因此，希望他們繼續增長，不僅是在這一年中，而且正如湯姆提到的那樣，我認為與該客戶的機會是巨大的。

One, as we transition to 600-gig, as we have subsea opportunities, it's a very big opportunity for us.

第一，當我們過渡到 600-gig 時，因為我們有海底機會，這對我們來說是一個非常大的機會。

You'll also see the ICP grow from a revenue perspective in Q3, and not just from that customer.

您還將看到 ICP 在第三季度從收入的角度增長，而不僅僅是來自該客戶。

Got it.

知道了。

Also if I can just ask you on the strength you're seeing with the North American Tier 1s and if you can go into a bit more detail there, what's driving the strength.

另外，如果我可以問你你在北美一級看到的實力，如果你可以在那裡更詳細一點，是什麼推動了實力。

I know you mentioned 5G and you also mentioned subsea.

我知道您提到了 5G，也提到了海底。

What are you seeing on the metro side as well in terms of investments?

您在地鐵方面以及投資方面看到了什麼？

Where do we expect most of the 5G investments to come in?

我們預計大部分 5G 投資將投向何處？

Yes, we should delineate between book.

是的，我們應該在書之間劃清界限。

Again, the 3 quarters of building out backlog and that continuing for the remainder of the year is different than the strength we're talking about in these new Tier 1 wins.

同樣，建立積壓工作的 3 個季度以及今年剩餘時間的持續工作與我們在這些新的 1 級勝利中談論的實力不同。

In many cases, when these Tier 1s deploy, they're deploying new design wins, so some of them are getting new design wins on the open compact modular platform that we're talking about, the Groove going forward, based on our optical leadership.

在許多情況下，當這些一級供應商部署時，他們正在部署新的設計勝利，因此他們中的一些人正在我們談論的開放式緊湊型模塊化平台上獲得新的設計勝利，基於我們的光學領導地位的 Groove 向前發展.

And some of these, both North American Tier 1s and we talked about global PTTs that are considered Tier 1s, are also completing, as it were, beginning their architectures for 5G and DAA access architectures.

其中一些，包括北美 Tier 1 和我們談到的被認為是 Tier 1 的全球 PTT，也正在完成，可以說，開始他們的 5G 和 DAA 接入架構的架構。

And that's where we're starting to see those initial design wins.

這就是我們開始看到那些初始設計獲勝的地方。

What you first get with the Tier 1 is a design win, is a trial period, in some cases paid for, in some cases unpaid.

您首先從 Tier 1 獲得的是設計勝利，是試用期，在某些情況下是付費的，在某些情況下是未付費的。

And then they begin rollouts.

然後他們開始推出。

I would like to reinforce that in the -- getting back to growing bookings and backlog, that happens as they scale those opportunities, which is a multiquarter, multiyear for 5G and DAA and a very large opportunity.

我想強調的是——回到不斷增長的預訂和積壓，這是在他們擴大這些機會時發生的，這對 5G 和 DAA 來說是一個多季度、多年的機會，也是一個非常大的機會。

So again, design wins on the edge of the network with our distributed router platform as well as our front-haul/backhaul platform and in the compact modular business with the Groove.

因此，設計再次通過我們的分佈式路由器平台以及我們的前傳/回傳平台以及 Groove 在緊湊的模塊化業務中獲勝。

There's also Brad talked about North America Tier 1 Spring.

Brad 還談到了北美一級春季賽。

That came from our classic product, building long-haul product and winning new routes.

這來自我們的經典產品，打造長途產品並贏得新航線。

So one of the things that we've been really delighted with is the amount of new routes we are winning with 2 of our North America Tier 1s in the classic long-haul space.

因此，我們真正感到高興的一件事是，我們在經典長途航線中贏得了 2 條北美一級航線的新航線數量。

And that makes me also believe that they're not building these routes to not fill.

這讓我也相信他們不會建造這些路線來填補空缺。

They fill them over time, and I do believe that even though we are paying a little bit of a margin pressure on this in the near term, the fact that we're winning substantive new routes with these 2 Tier 1s that have been long-term partners is a good sign.

隨著時間的推移，他們會填滿它們，我確實相信，儘管我們在短期內為此付出了一點利潤壓力，但事實上我們正在通過這 2 條長期的一級航線贏得實質性的新航線 -長期合作夥伴是一個好兆頭。

And our next question comes from Jim Suva of Citi.

我們的下一個問題來自花旗銀行的吉姆蘇瓦。

And thus far your questions and the details to those have been very and appreciated.

到目前為止，您的問題和這些問題的詳細信息都非常受歡迎。

But I have one thing that maybe my hearing's off or I'm getting too old, or maybe I heard it wrong and maybe you can clarify.

但我有一件事，可能是我的聽力不佳，或者我太老了，或者我聽錯了，也許你可以澄清一下。

Brad, on your prepared comments, you mentioned that there was like a gross margin push-out?

布拉德，在你準備好的評論中，你提到過毛利率下降？

And if so can you help us better understand why, or maybe I just completely heard that wrong, and give us some details around that.

如果是的話，你能幫助我們更好地理解原因嗎，或者我只是完全聽錯了，然後給我們一些細節。

Again, I apologize if I heard it wrong.

再次，如果我聽錯了，我深表歉意。

Yes, so Jim, when we looked at the second half of the year earlier, we expected a bit more of a ramp of the gross margin in Q3 and then a further ramp into Q4.

是的，吉姆，當我們回顧今年下半年時，我們預計第三季度的毛利率會有更多的增長，然後進一步進入第四季度。

So although we are increasing the margin from Q2 to Q3 and still believe the opportunity in Q4 is strong, the amount of new footprint we're building in Q3 is going to push that growth of the Q3 increase in margin into the fourth quarter.

因此，儘管我們將第二季度的利潤率提高到第三季度，並且仍然相信第四季度的機會很大，但我們在第三季度建立的新足跡數量將推動第三季度利潤率增長進入第四季度。

That's what I was commenting to.

這就是我要評論的內容。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I'd like to turn the conference back over to Infinera management for any final remarks.

我想將會議轉回給 Infinera 管理層，聽取任何最後的評論。

I'd like to thank all of you for your time today, and I look forward to updating you on our continued progress.

我要感謝大家今天的時間，我期待著向您介紹我們的持續進展。

Before signing off, I would like to thank Brad for his partnership and his friendship.

在結束之前，我要感謝 Brad 的合作夥伴關係和友誼。

He has been truly committed to Infinera, and I wish him the very best.

他一直致力於 Infinera，我祝他一切順利。

Have a great day.

祝你有美好的一天。

Thank you, sir.

謝謝你，先生。

Today's conference has now concluded, and we thank you all for attending today's presentation.

今天的會議現已結束，感謝大家出席今天的演講。

You may now disconnect your lines, and have a wonderful day.

您現在可以斷開線路，度過美好的一天。