Infinera Corp (INFN) 2019 Q3 法說會逐字稿

Good morning and welcome to Infinera's Fiscal Third Quarter 2019 Financial Results Conference Call.

早上好，歡迎來到 Infinera 2019 財年第三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。

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

（操作員說明）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, Rocco.

謝謝你，羅科。

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

歡迎來到 Infinera 2019 年第三季度電話會議。

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

今天的收益和投資者幻燈片的副本可在我們網站的投資者關係部分獲得。

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 fourth 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四季度展望的聲明。

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 investor slides 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投資者幻燈片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 states are made as of -- statements made -- 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，所有狀態均於 - 聲明 - 於今天作出，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 財務指標。

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 third quarter of 2019 earnings release and investor slides.

根據 G 條例，我們在 2019 年第三季度的收益發布和投資者幻燈片中提供了這些非 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 morning, and thank you for joining us on our third quarter 2019 earnings conference call.

早上好，感謝您加入我們的 2019 年第三季度收益電話會議。

Joining me today are CFO, Nancy Erba; and COO, David Heard.

今天加入我的是首席財務官 Nancy Erba；和首席運營官大衛赫德。

I'll start by briefly reviewing our Q3 financial performance, highlighting our execution on integration and depicting our strengthening innovation pipeline and success in positioning our new portfolio with an expanding global customer base.

我將首先簡要回顧我們第三季度的財務業績，強調我們在整合方面的執行情況，並描述我們不斷加強的創新渠道以及在將我們的新產品組合定位於不斷擴大的全球客戶群方面取得的成功。

I'll then turn the call over to Nancy to provide a detailed review of our Q3 results and give additional perspective on our financial outlook.

然後，我會將電話轉給南希，以提供對我們第三季度業績的詳細審查，並就我們的財務前景提供更多觀點。

Looking back at the third quarter, my summary view is that we had a solid quarter that made significant progress in 3 key areas.

回顧第三季度，我的總結觀點是我們有一個穩健的季度，在 3 個關鍵領域取得了重大進展。

Aggressive execution on the Coriant integration has put us in a position to close this chapter of the combination in the fourth quarter and deliver on our second half 2019 commitments, including non-GAAP operating profit and positive cash flow in Q4.

對 Coriant 整合的積極執行使我們能夠在第四季度結束這一合併篇章，並兌現我們 2019 年下半年的承諾，包括第四季度的非 GAAP 營業利潤和正現金流。

Our enhanced and integrated portfolio is being embraced by our customers as bookings for Q3 were at record high, and we continued to win new strategic opportunities.

隨著第三季度的預訂量創下歷史新高，我們增強和整合的產品組合受到客戶的歡迎，我們繼續贏得新的戰略機會。

And our innovation pipeline is robust, with differentiated solutions that are exciting our customers and opening opportunities for future growth in both the top line and gross margins.

我們的創新渠道非常強大，差異化的解決方案令我們的客戶興奮不已，並為未來收入和毛利率的增長創造了機會。

The financial results of the quarter demonstrate significant progress toward completing the integration of Coriant.

本季度的財務業績表明，在完成 Coriant 整合方面取得了重大進展。

Q3 non-GAAP revenue was $328 million, in line with our guidance, while we increased backlog for the fourth consecutive quarter.

第三季度非 GAAP 收入為 3.28 億美元，符合我們的指導，同時我們連續第四個季度增加積壓訂單。

Non-GAAP gross margin came in slightly better than our guide midpoint, while operating expenses were at the low end of the range.

非 GAAP 毛利率略高於我們的指導中點，而運營費用處於該範圍的低端。

This comp -- positive combination was partially offset by a negative foreign exchange impact, resulting in non-GAAP EPS that came in at the midpoint of our guidance.

這種比較 - 積極的組合被負面的外匯影響部分抵消，導致非 GAAP 每股收益處於我們指導的中點。

The highlight of the quarter was bookings, which grew significantly from a strong Q2, were a record for the company and exceeded our expectations at the beginning of the quarter.

本季度的亮點是預訂量，與強勁的第二季度相比顯著增長，創下了公司的記錄，超出了我們在本季度初的預期。

Our pipeline and customer traction continues to build with the addition of 3 new Tier 1 customer wins, which brought our year-to-date total to 10.

隨著 3 個新的一級客戶的加入，我們的管道和客戶吸引力繼續增強，這使我們年初至今的總數達到 10 個。

Having recently passed the 1-year anniversary of the closing of the Coriant acquisition, we are now in the final stages of integration and on track to substantially complete our integration office activity during the fourth quarter.

最近剛過了 Coriant 收購完成 1 週年，我們現在正處於整合的最後階段，並有望在第四季度基本完成我們的整合辦公室活動。

As we close this chapter, I'll remind you of the commitments that were made when we began this initiative.

在我們結束本章時，我會提醒您我們在開始這項計劃時做出的承諾。

First, achieve significant cost savings through synergies to deliver a profitable business in the near term.

首先，通過協同效應實現顯著的成本節約，以在短期內提供盈利業務。

Second, increase scale from expanded customer traction with Tier 1s and ICPs, enabled by a refreshed and integrated portfolio.

其次，通過更新和集成的產品組合，通過一級供應商和 ICP 擴大客戶吸引力來擴大規模。

And third, invest to be the innovation leader by leveraging our unique vertical integration capability over a broad end-to-end solutions portfolio to serve as a cornerstone of a differentiated business model.

第三，通過在廣泛的端到端解決方案組合中利用我們獨特的垂直整合能力作為差異化商業模式的基石，投資成為創新領導者。

Against these commitments, our execution highlights include: executing cost synergies delivering 2x our originally stated goal, with the expectation of $200 million in savings through 2019; scaling a powerful end-to-end portfolio that fueled 4 consecutive quarters of substantial backlog expansion and helped us earn 10 new Tier 1-scale customer wins to drive future growth; and enhanced our leadership in optical technology as we successfully launched 600-gig and remain on track for delivery of our 800-gig solution in 2020, while introducing XR optics, a new network paradigm.

針對這些承諾，我們的執行要點包括： 執行成本協同效應，實現我們最初設定目標的兩倍，預計到 2019 年可節省 2 億美元；擴展強大的端到端產品組合，推動了連續 4 個季度的大量積壓擴展，並幫助我們贏得了 10 個新的一級客戶，以推動未來的增長；隨著我們成功推出 600-gig 並繼續按計劃在 2020 年交付 800-gig 解決方案，同時引入新的網絡範式 XR 光學技術，我們在光學技術方面的領導地位得到加強。

While we must successfully complete the remaining integration work, our outlook remains that we expect to return the company to non-GAAP operating profit and positive cash flow in Q4.

雖然我們必須成功完成剩餘的整合工作，但我們的前景仍然是我們希望公司在第四季度恢復非 GAAP 營業利潤和正現金流。

Our heritage as a leading optical innovator has been a significant value driver for our customers, and we believe this capability becomes more important in the future.

我們作為領先的光學創新者的傳統一直是我們客戶的重要價值驅動因素，我們相信這種能力在未來會變得更加重要。

While we've been reducing expenses this year, we'll have reduced -- increased our R&D investment for our vertically integrated optical technologies by 20% year-over-year, filling our pipeline with solutions that are aligned with the fastest-growing segments in the optical market.

雖然我們今年一直在削減開支，但我們將減少 - 將我們對垂直集成光學技術的研發投資同比增加 20%，用與增長最快的細分市場相一致的解決方案填充我們的產品線在光學市場。

We have clear insertion strategies to drive growth with the high bandwidth applications, data center architectures and metro aggregation and distribution networks.

我們有明確的插入策略來推動高帶寬應用程序、數據中心架構和城域聚合和分發網絡的增長。

On the innovation front, we are driving to differentiate in 3 distinct categories.

在創新方面，我們正在努力在 3 個不同的類別中脫穎而出。

Optical leadership through vertical integration with differentiation in performance and cost.

通過垂直整合在性能和成本上的差異化實現光學領導地位。

Disaggregation with open platforms for both optical and IP solutions and automation that deliveries network operational efficiency and rapid service deployment.

與光學和 IP 解決方案和自動化的開放平台分離，提供網絡運營效率和快速服務部署。

On the optical front, we are delivering 600-gig technology to the market with shipments scheduled for revenue this quarter.

在光學方面，我們正在向市場提供 600-gig 技術，併計劃在本季度實現收入出貨。

For 800-gig, our picks are being demonstrated to customers and our DSP remains on track for delivery this month.

對於 800-gig，我們正在向客戶展示我們的選擇，我們的 DSP 仍按計劃在本月交付。

This aligns with our plan for 800-gig product delivery in the second half of 2020.

這符合我們在 2020 年下半年交付 800 兆產品的計劃。

We believe our 800-gig product will deliver a significant cost and performance advantage, while our vertically integrated manufacturing capability, the most complete in the industry, will enable us to rapidly ramp this fifth generation of technology into volume.

我們相信我們的 800-gig 產品將帶來顯著的成本和性能優勢，而我們業內最完整的垂直整合製造能力將使我們能夠迅速將第五代技術投入量產。

We continue to believe we'll be one of only a very small number of companies delivering 800-gig in 2020.

我們仍然相信，我們將成為 2020 年交付 800 兆字節的極少數公司之一。

In a continuation of our history of providing game-changing technologies, we introduced XR optics at ECOC in September and received a strong market reception.

為了延續我們提供改變遊戲規則的技術的歷史，我們於 9 月在 ECOC 上推出了 XR 光學器件，並獲得了強烈的市場反響。

This is an innovative approach to drive radical simplification and step function cost savings to aggregation network architectures and creates a new product category.

這是一種創新方法，可推動聚合網絡架構的徹底簡化和階躍函數成本節約，並創建一個新的產品類別。

The first coherent point-to-multipoint optical networking technology based on a network aware optical pluggable.

第一個基於網絡感知光可插拔的相干點對多點光網絡技術。

Network providers see XR as a compelling solution for applications such as 5G wireless, cable fiber deep and business service aggregation as it supports the evolution of bandwidth demand while greatly simplifying network operations.

網絡提供商將 XR 視為 5G 無線、有線光纖深度和業務服務聚合等應用的引人注目的解決方案，因為它支持帶寬需求的發展，同時極大地簡化了網絡運營。

Infinera is committed to bringing this technology to market with a multi-source strategy to enable a broad-based adoption of this technology across network applications.

Infinera 致力於通過多源策略將該技術推向市場，以實現跨網絡應用程序廣泛採用該技術。

Over the next few quarters, we expect to make further announcements as we position ourselves to deliver intelligent network pluggables.

在接下來的幾個季度中，我們預計會發布更多公告，因為我們將自己定位為提供智能網絡可插拔產品。

On the open and disaggregated front, we are committed to leadership in 2 areas.

在開放和分類方面，我們致力於在 2 個領域發揮領導作用。

In the optical space, compact modular platforms continue to experience double-digit yearly growth and are expected to be a $3.6 billion market in 2023.

在光學領域，緊湊型模塊化平台繼續保持兩位數的年增長率，預計到 2023 年將達到 36 億美元的市場規模。

Being adopted by both ICPs and CSPs, our group platform, supporting up to 600-gig waves today, continues to outperform from a market acceptance perspective.

我們的集團平台被 ICP 和 CSP 採用，目前支持高達 600 兆波，從市場接受度的角度來看繼續表現出色。

With the addition of over 40 new Groove customers year-to-date, including a significant ICP and a number of Tier 1 CSPs globally, our expectation is that our market share will show noted growth in the second half of 2019.

隨著今年迄今新增 40 多個 Groove 客戶，包括重要的 ICP 和全球許多一級 CSP，我們預計我們的市場份額將在 2019 年下半年出現顯著增長。

As we prepare to introduce 800-gig into our offering, we see the opportunity for continued market share expansion with our leading optical capability.

在我們準備將 800-gig 引入我們的產品時，我們看到了利用我們領先的光學能力繼續擴大市場份額的機會。

With the advent of 5G and fiber deep, our customers are driving a fresh approach to metro aggregation and are looking to router disaggregation as a way to minimize vendor lock-in, speed new service deployment, facilitate faster innovation and assure cost-effective scaling.

隨著 5G 和光纖深度的出現，我們的客戶正在推動一種新的城域匯聚方法，並希望將路由器分解作為一種方式來最大限度地減少供應商鎖定、加速新服務部署、促進更快的創新並確保具有成本效益的擴展。

As previously announced, Telefónica is currently deploying our DRX router for a 5G wireless network build in Germany.

正如之前宣布的那樣，Telefónica 目前正在為德國的 5G 無線網絡建設部署我們的 DRX 路由器。

Our disaggregated DRX, XTM and Transcend wireless solution leverages our field-hardened cell site routing installed base, while offering our customers a powerful transition to 5G.

我們的分解式 DRX、XTM 和 Transcend 無線解決方案利用我們經過現場強化的基站路由安裝基礎，同時為我們的客戶提供向 5G 的強大過渡。

Our pipeline of activity continues to grow with the DRX, and we expect revenue to begin ramping in 2020 in what is expected to be a lengthy 5G investment cycle.

隨著 DRX 的推出，我們的活動渠道繼續增長，我們預計收入將在 2020 年開始增加，預計這將是一個漫長的 5G 投資週期。

Transcend, our automation software suite, is a key enabler to deliver an efficient network across traditional and disaggregated network elements.

我們的自動化軟件套件 Transcend 是跨傳統和分散網絡元素提供高效網絡的關鍵推動因素。

Today, Transcend helps customers like AT&T, NBN and Verizon to manage their network assets with greater efficiency and improved customer responsiveness.

如今，Transcend 幫助 AT&T、NBN 和 Verizon 等客戶以更高的效率和更好的客戶響應能力來管理他們的網絡資產。

It is instrumental in the purchase decision for our disaggregated metro solutions as customers expect simplified operations and the rapid rollout of new revenue-generating services.

它有助於我們的分類地鐵解決方案的購買決策，因為客戶期望簡化操作和快速推出新的創收服務。

And finally, it facilitates the creation of new service offerings with Tier 1s, providing the intelligence required to migrate legacy circuits and next-generation networks, as evidenced by our previous Verizon announcement.

最後，它促進了與第 1 層的新服務產品的創建，提供遷移遺留電路和下一代網絡所需的智能，正如我們之前的 Verizon 公告所證明的那樣。

With the Coriant integration nearly complete, multiple proof points that our portfolio is being embraced by customers, an innovation pipeline poised to deliver meaningfully disruptive solutions to the fastest-growing segments in the market and material progress in improving the bottom line of the company.

隨著 Coriant 整合接近完成，多個證據表明我們的產品組合正受到客戶的歡迎，一條創新管道準備為市場上增長最快的細分市場提供有意義的顛覆性解決方案，並在提高公司利潤方面取得重大進展。

We see the opportunity we envisioned a year ago starting to materialize.

我們看到我們一年前設想的機會開始實現。

At the macro level, we see fundamental demand remaining strong, as bandwidth-hungry services require new architectures that deliver dramatic cost reductions in transmission and networks.

在宏觀層面，我們看到基本需求依然強勁，因為需要大量帶寬的服務需要新架構來大幅降低傳輸和網絡成本。

Our leadership in vertical integration is core to our ability to continue to drive down costs, enable these new architectures and deliver technology in a narrowing group of viable technology sources.

我們在垂直整合方面的領導地位是我們繼續降低成本、啟用這些新架構並在越來越少的可行技術來源中交付技術的能力的核心。

On the global front, we are well positioned to take advantage of growing concern over network security, while having very limited exposure to the political uncertainty surrounding China.

在全球方面，我們處於有利地位，可以利用對網絡安全日益增長的擔憂，同時對圍繞中國的政治不確定性的敞口非常有限。

As we prepare to close 2019, I look back with appreciation at the significant transformation our company has achieved in 1 year.

在我們準備結束 2019 年之際，回顧我們公司在 1 年內取得的重大轉型，我心存感激。

Looking forward, I'm excited and realistic about the opportunity ahead and the work required to complete the execution of our vision.

展望未來，我對未來的機會和完成我們願景的執行所需的工作感到興奮和現實。

I would like to thank our employees for their significant contributions toward enabling this transformation.

我要感謝我們的員工為實現這一轉變做出的重大貢獻。

I will now introduce our new CFO, Nancy Erba.

我現在將介紹我們的新首席財務官 Nancy Erba。

Nancy will share her initial observations about Infinera and then review our results and Q4 guidance.

Nancy 將分享她對 Infinera 的初步觀察，然後回顧我們的結果和第四季度指南。

Thanks, Tom, and good morning, everyone.

謝謝，湯姆，大家早上好。

Today, I will provide my initial thoughts on the business, discuss our Q3 financial highlights and provide our outlook for the remainder of the year.

今天，我將提供我對業務的初步想法，討論我們第三季度的財務亮點，並提供我們對今年剩餘時間的展望。

For your reference, we have posted slides with financial details to our Investor Relations website to assist with my commentary.

供您參考，我們已將包含財務詳細信息的幻燈片發佈到我們的投資者關係網站，以協助我發表評論。

I became Infinera's CFO just over 2 months ago.

兩個多月前，我成為 Infinera 的首席財務官。

What initially drew me to the company, and what I have validated in my time here is the history of technology innovation and the potential for Infinera to emerge from the Coriant acquisition poised to increase shareholder value and the growing $18 billion optical networking market.

最初吸引我來到這家公司的，也是我在這里工作期間所證實的是技術創新的歷史，以及 Infinera 從 Coriant 收購中脫穎而出的潛力，有望增加股東價值和不斷增長的 180 億美元光網絡市場。

The organization has put forth tireless effort over the last year to integrate 2 companies at a fast pace.

該組織在過去的一年裡付出了不懈的努力，以快速整合兩家公司。

As we entered the latter stages of the integration, we worked through the anticipated challenges of 3 significant structural business changes.

當我們進入整合的後期階段時，我們應對了 3 項重大結構性業務變革的預期挑戰。

First, the consolidation of 3 ERP instances into 1. As we announced last week, the complexities of this integration resulted in a delay in announcing our financial results until today.

首先，將 3 個 ERP 實例合併為 1 個。正如我們上周宣布的那樣，這種整合的複雜性導致我們延遲到今天才公佈財務業績。

We will continue to improve our close process and shorten the time to announce our financial results over the coming years.

我們將繼續改進關閉流程，並縮短未來幾年公佈財務業績的時間。

Second, a supply chain transformation enabling the move from a fixed cost structure to an outsourced model that will allow for variable flexibility to better support our customers, while optimizing our cost leverage.

其次，供應鏈轉型能夠從固定成本結構轉變為外包模式，這將允許可變的靈活性以更好地支持我們的客戶，同時優化我們的成本槓桿。

And third, the introduction of a new finance leadership team.

第三，引入新的財務領導團隊。

The complexity of these transitions was magnified by stronger-than-expected demand in bookings and an anticipated shipping shutdown recovery that extended longer than planned.

這些轉變的複雜性因預訂需求強於預期以及預期的航運停運恢復時間比計劃延長而被放大。

The result was a heavily back-end loaded quarter in terms of shipping linearity, invoicing and collections.

結果是在航運線性、發票和收款方面後端負載沉重的季度。

We anticipate shipping recovery to be accomplished in the fourth quarter.

我們預計航運復甦將在第四季度完成。

I will now walk you through the financial highlights of our third fiscal quarter, which illustrates the progress we have made toward executing on our strategic goals.

我現在將向您介紹我們第三財季的財務亮點，這些亮點說明了我們在執行戰略目標方面取得的進展。

Q3 non-GAAP revenue increased 7% sequentially to $328 million, was within our guidance range of $320 million to $340 million.

第三季度非 GAAP 收入環比增長 7% 至 3.28 億美元，在我們 3.2 億美元至 3.4 億美元的指導範圍內。

As discussed, revenue was impacted by our planned ERP shutdown and delayed shipment recovery.

如前所述，收入受到我們計劃的 ERP 關閉和發貨恢復延遲的影響。

We recognized one 10% customer in the quarter, and we experienced strength in the ICP vertical, where we benefited from the growth in demand from a new customer that began deploying our Groove platform earlier in the year.

我們在本季度認識了一個 10% 的客戶，並且我們在 ICP 垂直領域體驗到了優勢，我們從今年早些時候開始部署我們的 Groove 平台的新客戶的需求增長中受益。

As a result, our geographic mix skewed more toward North America with 49% of revenue coming from that region.

因此，我們的地理組合更傾向於北美，49% 的收入來自該地區。

Non-GAAP gross margin of 33.1% came in above the midpoint of our 33% to 34% guidance range even with our continued growth and footprint expansion for line systems in the quarter.

非 GAAP 毛利率為 33.1%，高於我們 33% 至 34% 指導範圍的中點，即使我們在本季度繼續增長和線路系統的足跡擴張。

The flow-through of our integration cost efforts were able to modestly offset these margin pressures.

我們整合成本的努力能夠適度抵消這些利潤壓力。

Moving now to operating expenses.

現在轉向運營費用。

We continue to make solid progress driving down expenses, reporting Q3 non-GAAP OpEx at $127 million, below our $130 million guidance midpoint and down 3.7% from $132 million in Q2.

我們繼續在降低開支方面取得穩步進展，報告第三季度非 GAAP 運營支出為 1.27 億美元，低於我們 1.3 億美元的指導中點，比第二季度的 1.32 億美元下降 3.7%。

While taking actions to reduce our overall non-GAAP OpEx spend, we are also ensuring that we invest in the right growth areas, such as increasing R&D and critical programs, as Tom mentioned earlier.

在採取行動減少我們的整體非 GAAP 運營支出的同時，我們還確保我們投資於正確的增長領域，例如增加研發和關鍵項目，正如湯姆之前提到的那樣。

This diligent management of expenses affords us the ability to focus investment on innovation and provides us the ability to differentiate our solutions and improve our operating model through gross margin expansion over time.

這種對費用的勤勉管理使我們能夠將投資集中在創新上，並使我們能夠通過毛利率的長期擴張來區分我們的解決方案和改進我們的運營模式。

This is an investment versus spending mentality with the intense focus on the resulting business model.

這是一種投資與支出的心態，非常關注由此產生的商業模式。

In aggregate, we recognized a non-GAAP operating loss of 5.7% and a non-GAAP net loss of $0.17 per share, both metrics within our Q3 guidance range.

總的來說，我們確認了 5.7% 的非 GAAP 運營虧損和每股 0.17 美元的非 GAAP 淨虧損，這兩個指標都在我們第三季度的指導範圍內。

Turning to the balance sheet.

轉向資產負債表。

Total cash and investments finished the quarter at $121 million.

本季度現金和投資總額為 1.21 億美元。

As a result of the disruptions we experienced with the ERP integration and the shipment linearity I described, our invoicing and collections for the quarter were also impacted.

由於我們在 ERP 集成和我描述的發貨線性方面遇到的中斷，我們本季度的發票和收款也受到了影響。

This is a temporal issue that will resolve during Q4 and into Q1.

這是一個時間問題，將在第四季度和第一季度解決。

As a result, we drew down $30 million on the ABL facility, which was put in place during the third quarter for precisely this type of situation.

因此，我們在 ABL 設施上提取了 3000 萬美元，該設施是在第三季度為這種情況而設立的。

The ABL provides flexibility to our working capital to support an increasing demand profile like we experienced in Q3.

ABL 為我們的營運資金提供了靈活性，以支持我們在第三季度經歷的不斷增長的需求狀況。

I am keenly focused on improving our cash conversion cycle by measuring our working capital, prioritizing inventory turns and managing accounts receivable collections.

我非常專注於通過衡量我們的營運資金、優先考慮庫存周轉和管理應收賬款來改善我們的現金轉換週期。

While we have made progress over the past year, we believe there remain many ways to improve our operational efficiency.

雖然我們在過去一年取得了進展，但我們相信仍有許多方法可以提高我們的運營效率。

We believe that our cash, along with our existing credit facility, will be sufficient to meet our currently anticipated working capital requirements.

我們相信我們的現金連同我們現有的信貸額度將足以滿足我們目前預期的營運資金需求。

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

現在是我們對 2019 財年第四季度的指導。

As mentioned earlier, our Q3 bookings increased materially in the quarter, representing the fourth consecutive quarter of backlog growth.

如前所述，我們第三季度的預訂量在本季度大幅增加，這是連續第四個季度積壓增長。

We continue to see a healthy pipeline and expect another solid quarter of bookings in Q4.

我們繼續看到一個健康的渠道，並預計第四季度的預訂量將再次保持穩健。

For Q4, we currently anticipate non-GAAP revenue of $355 million to $375 million, which would bring us to the target of $1.3 billion for the year.

對於第四季度，我們目前預計非 GAAP 收入為 3.55 億美元至 3.75 億美元，這將使我們實現全年 13 億美元的目標。

Based on the benefits of our new leveraged supply chain model and as our product mix continues to normalize in the period, we expect non-GAAP gross margin to be between 34% and 36% for the quarter of -- for the fourth quarter of this year, in line with previous expectations.

基於我們新的槓桿供應鏈模型的優勢以及我們的產品組合在此期間繼續正常化，我們預計本季度第四季度的非美國通用會計準則毛利率將在 34% 至 36% 之間年，符合此前預期。

We anticipate additional cost benefits to flow through the P&L in 2020 when the full impact of the expected supply chain efficiencies will be reflected.

我們預計，到 2020 年，預期供應鏈效率的全部影響將得到體現時，額外的成本效益將通過損益表產生。

With regard to operating expenses, we have made tremendous progress driving down our expense levels, reaching our end of year target ahead of schedule.

在運營費用方面，我們在降低費用水平方面取得了巨大進步，提前實現了年終目標。

We will continue to manage expenses closely and anticipate Q4 non-GAAP operating expenses to remain in the range of $125 million to $129 million.

我們將繼續密切管理費用，並預計第四季度非 GAAP 運營費用將保持在 1.25 億美元至 1.29 億美元的範圍內。

This range includes the increased commissions expected with stronger bookings and revenue.

該範圍包括隨著預訂量和收入的增加而預期增加的佣金。

We expect our Q4 non-GAAP operating income to be between breakeven and 2%, slightly profitable, with anticipated non-GAAP EPS between a loss of $0.01 and $0.05 per share.

我們預計我們第四季度的非 GAAP 營業收入將在盈虧平衡和 2% 之間，略有盈利，預計非 GAAP 每股收益將虧損 0.01 美元至 0.05 美元。

The combination of stronger demand for our products as reflected by increased backlog and new customer additions and the impact of our synergy saving efforts has kept us on track for Q4 non-GAAP operating profitability and turning cash flow positive in Q4.

積壓訂單增加和新客戶增加反映出對我們產品的強勁需求，以及我們協同節省努力的影響，使我們在第四季度實現非 GAAP 運營盈利並在第四季度將現金流轉為正數。

With the integration of Coriant coming to a close, we see the foundation in place for growth and improved operating leverage.

隨著 Coriant 的整合即將結束，我們看到了增長和提高運營槓桿的基礎。

We plan to share the metrics we will be measuring in 2020 along with a framework for our long-term business model during our Q4 earnings conference call next year.

我們計劃在明年的第四季度收益電話會議上分享我們將在 2020 年衡量的指標以及我們長期業務模型的框架。

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

有了這個，我將把電話轉給 Rocco 來進行電話的問答部分。

(Operator Instructions) Today's first question comes from Rod Hall at Goldman Sachs.

（操作員說明）今天的第一個問題來自高盛的 Rod Hall。

Good set of earnings.

良好的收入組合。

I just wanted to check, I guess, on 800-gig, Tom, and see if you could expand a little bit on where we are in that process?

Tom，我想我只是想檢查一下 800-gig，看看你是否可以擴展一下我們在該過程中所處的位置？

It sounds like you've finished tape-out, maybe let us know what the next milestone there is?

聽起來您已經完成流片，也許讓我們知道下一個里程碑是什麼？

And then I have a follow-up.

然後我有一個後續行動。

Sure, Rod.

當然，羅德。

Thank you for your time.

感謝您的時間。

Yes, we remain on track, as I said, to delivering our 800-gig product in the second half of next year.

是的，正如我所說，我們仍在按計劃在明年下半年交付我們的 800 兆產品。

The next major milestone is delivery of our DSP.

下一個重要里程碑是我們 DSP 的交付。

That is scheduled for this week.

計劃在本週進行。

So we should have that in our hands this week.

所以我們應該在本週掌握它。

There's been a fairly significant amount of work that we will do to validate.

我們將做大量工作來驗證。

Our history has been that the DSPs work, but until it works, you don't know.

我們的歷史是 DSP 起作用，但在它起作用之前，您不知道。

You should expect us to have announcements in regard to, I would call it, customer demonstrations in the first half of next year and then shipping for revenue in the second half.

你應該期待我們在明年上半年發布關於（我稱之為）客戶演示的公告，然後在下半年發布收入。

The PIC, as we said on the call, is in good shape right now.

正如我們在電話中所說，PIC 目前狀況良好。

We're demonstrating that to customers in our lab.

我們正在實驗室向客戶展示這一點。

We're doing emulation of the DSP.

我們正在對 DSP 進行仿真。

And so far, customers have come back with the overall reflection that the performance is quite good.

到目前為止，客戶回來後總體反映效果還是不錯的。

Okay.

好的。

And then my follow-up for Nancy is regarding working capital.

然後我對南希的後續行動是關於營運資金的。

I guess, more bigger picture regarding cash flow, but cash flow was a little bit weaker than we expected, Nancy.

我想，關於現金流的更大圖景，但現金流比我們預期的要弱一些，南希。

And then if we dig into that, it's mostly in the working capital line.

然後，如果我們深入研究，它主要是在營運資金線上。

We see the inventory going up, which is probably a good sign, I guess.

我們看到庫存在增加，我想這可能是一個好兆頭。

And in accounts receivable -- is also up a little bit.

而在應收賬款中——也有所增加。

So I just wanted to see if you could talk us through some of those movements and what your expectations for cash flow are?

所以我只是想看看您是否可以通過其中一些變動與我們交談，以及您對現金流量的期望是什麼？

Sure.

當然。

So as we talked about, we had the delay, which we had expected in shipments with the cutover to the combined ERP.

因此，正如我們所說，我們遇到了延遲，這是我們在切換到合併 ERP 時預期的發貨。

I will say that, that took a little bit longer than we had initially planned, which caused not only a delay in shipments, which then leads to all of the follow-on repercussions in terms of invoicing and the ability to collect.

我要說的是，這比我們最初計劃的時間要長一點，這不僅會導致發貨延遲，還會導致在發票開具和收款能力方面的所有後續影響。

So you do see that increase both in the inventory and in AR because of that.

因此，您確實看到庫存和應收賬款都因此增加。

What we expect, and it is a temporal issue, is now that we are back running, we will see those collections start to roll into Q4 and into Q1, and we would expect, as I said in my statement, to be cash flow positive in Q4.

我們期望的是，這是一個暫時的問題，現在我們正在恢復運行，我們將看到這些收款開始進入第四季度和第一季度，正如我在聲明中所說，我們預計現金流為正在第四季度。

And [Eric], could you expand on that shipping issue a little bit, like why did the ERP system affect shipping, just so we can understand that in a little more detail.

[埃里克]，你能否稍微擴展一下運輸問題，比如為什麼 ERP 系統會影響運輸，這樣我們就可以更詳細地了解這一點。

There were actually 2 issues.

實際上有兩個問題。

So one was certainly a cutover of 3 SAP systems into one ERP.

因此，一個肯定是將 3 個 SAP 系統轉換為一個 ERP。

But the second is, as we've discussed on prior calls, we moved our own fixed manufacturing from our own facility in Berlin to an outsourced partner in Thailand, in Fabrinet.

但第二個是，正如我們在之前的電話中討論的那樣，我們將自己的固定製造從我們在柏林的工廠轉移到泰國 Fabrinet 的外包合作夥伴。

And so all that happened all at one time.

所以這一切都是在同一時間發生的。

So we cut over both systems and the supply chain.

所以我們切斷了系統和供應鏈。

And so as Nancy mentioned, if you looked at invoicing and shipping on a weekly basis and divided out the number by the number of weeks in the quarter, instead of us only having a down period of about a week and a half, that turned out to be about a 3-week period.

正如 Nancy 提到的那樣，如果你每週查看發票和運輸，並將數字除以該季度的周數，而不是我們只有大約一周半的停工期，結果是大約需要 3 週的時間。

If you take that out to cash flow, that's the delta in what we forecasted the cash and what we actually put out.

如果您將其計入現金流量，那就是我們預測的現金與我們實際投入的現金之間的差值。

Good news being, we very rarely have a bookings cancellation.

好消息是，我們很少有取消預訂的情況。

And our bad debt is 0.15%.

我們的壞賬率為 0.15%。

So as Nancy said, we expect that cash to restore in the next 2 quarters.

正如南希所說，我們預計現金將在未來兩個季度恢復。

And our next question today comes from [Hender Needham] of Needham & Company.

我們今天的下一個問題來自 Needham & Company 的 [Hender Needham]。

It might be Mr. Henderson.

可能是亨德森先生。

I apologize.

我道歉。

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

我們今天的下一個問題來自摩根士丹利的 Meta Marshall。

Maybe just if we could kind of isolate what amount of revenue might have slipped from Q3 to Q4, just as a result of this kind of 3-week period as kind of a bookkeeping item?

也許只是因為這種 3 週的時間作為簿記項目，我們可以隔離出從第三季度到第四季度可能下滑了多少收入？

And then maybe as a second item, this progress made on kind of getting the ICP customers that were Cloud Xpress customers converted over to Groove customers, just to make that 800-gig transition process easier next year.

然後也許作為第二個項目，這一進展在某種程度上讓 ICP 客戶從 Cloud Xpress 客戶轉換為 Groove 客戶，只是為了讓明年的 800 千兆轉換過程更容易。

Just if there's any kind of traction being made on converting those customers?

只是在轉換這些客戶方面有任何吸引力嗎？

Sure.

當然。

So I guess, first, we should reiterate that revenue came in just below the midpoint of guidance.

所以我想，首先，我們應該重申收入略低於指導的中點。

So with all of the challenges that we had during the quarter, we were able to recover well and come back into the range.

因此，儘管我們在本季度遇到了所有挑戰，但我們能夠很好地恢復並回到正常範圍內。

So I want to make sure that we remember that as we're talking about this.

所以我想確保我們在談論這個時記住這一點。

So you could then infer, right, that the bookings being as strong as they were in the backlog that we are now working through, there is additional opportunity.

所以你可以推斷，正確的，預訂和我們現在正在處理的積壓訂單一樣強勁，還有更多的機會。

We see the improvement going into Q4, our range $355 million to $375 million in revenue through Q4 and another expected strong bookings quarter.

我們看到第四季度有所改善，第四季度的收入範圍為 3.55 億美元至 3.75 億美元，預計另一個強勁的預訂季度。

Yes, yes.

是的是的。

There was more than sufficient demand to hit our guidance window in Q3.

在第三季度達到我們的指導窗口的需求綽綽有餘。

We kind of ran out of time with recovery.

我們有點沒時間恢復了。

And as Nancy said, it's less of a revenue recognition issue, it's more of a linearity and invoicing and collections issue than a rev rec issue.

正如南希所說，這不是收入確認問題，而是線性、發票和收款問題，而不是 rev rec 問題。

In regard to ICPs, we're being very successful with the Groove.

關於 ICP，我們在 Groove 方面非常成功。

And if you think about the Groove, one of the advantages it has is it's a sled-based architecture, which allows multiple generations of technology not to be deployed.

如果您考慮一下 Groove，它的優勢之一就是它是基於 sled 的架構，允許不部署多代技術。

As the Infinera CX platform kind of runs through its normal course of life on the ICE4, we are being successful at introducing the Groove into ICPs that we historically had but, just as importantly, winning new ICPs with that platform, particularly, the one we've pointed out a couple of times, a substantive ICP that is driving a significant amount of demand.

隨著 Infinera CX 平台在 ICE4 上經歷其正常的生命週期，我們成功地將 Groove 引入了我們歷史上擁有的 ICP，但同樣重要的是，通過該平台贏得了新的 ICP，特別是我們的那個已經多次指出，實質性的 ICP 正在推動大量需求。

But it's important not to just think about the Groove platform for ICPs, it is being exceptionally well received with CSPs around the world.

但重要的是不要只考慮用於 ICP 的 Groove 平台，它在世界各地的 CSP 中都非常受歡迎。

They are using this platform for transmission as they look at building out 5G networks, as they look at building normal long-haul metro networks.

他們正在使用這個平台進行傳輸，因為他們正在考慮構建 5G 網絡，因為他們正在考慮構建普通的長途城域網。

It's being exceptionally well received in general.

總體而言，它非常受歡迎。

Got it.

知道了。

So your guy's stance is that, really, this 3-week shutdown just affected collections not that more of the bookings that were booked in Q3 would have been recognized as (inaudible) in Q3?

所以你的人的立場是，真的，這 3 週的關閉只是影響了集合，而不是更多在第三季度預訂的預訂會在第三季度被識別為（聽不清）？

So I think -- yes, I think Nancy was pretty clear in terms of -- and certainly, there was opportunity.

所以我認為 - 是的，我認為南希非常清楚 - 當然，有機會。

But -- and certainly, we are positioned well with backlog as we enter Q4.

但是——當然，當我們進入第四季度時，我們在積壓方面處於有利地位。

But as any integration, you're going to go through the learning curve as we go, and we've contemplated that into our guidance range for Q4.

但作為任何整合，你將在我們前進的過程中經歷學習曲線，我們已經將其納入我們第四季度的指導範圍。

Yes, Meta, as I said, we ran out of time.

是的，Meta，正如我所說，我們沒時間了。

Had we had the ability to ship faster, we would have -- we had the demand that we would have fulfilled...

如果我們有能力更快地發貨，我們就會 - 我們有我們會滿足的需求......

More.

更多的。

More.

更多的。

We ran out of time.

我們沒時間了。

And 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。

So you've talked about 4 straight quarters of building backlog and the orders have been quite good for 4 straight quarters.

所以你已經談到了連續 4 個季度的建築積壓，而且連續 4 個季度的訂單都非常好。

My question is, do you think that, that's a function of the industry demand or a function of share gain that you're doing or both?

我的問題是，您認為這是行業需求的函數還是您正在做的份額收益的函數，或者兩者兼而有之？

I think it's a function of a few things.

我認為這是幾件事情的結果。

One, as I said in my commentary, we see relatively strong and healthy demand.

第一，正如我在評論中所說，我們看到了相對強勁和健康的需求。

A lot of these new architectures that are being deployed to support next-generation applications just require more bandwidth.

許多正在部署以支持下一代應用程序的新架構只需要更多帶寬。

So I see a healthy bandwidth environment.

所以我看到了一個健康的帶寬環境。

Two, I see that the solution set that we are bringing to market, as we've integrated this portfolio and tied together a number of various platforms into an integrated solution with Transcend, is being well received.

第二，我看到我們推向市場的解決方案集，因為我們已經整合了這個產品組合，並將許多不同的平台與 Transcend 捆綁在一起，成為一個集成解決方案，受到了好評。

We are winning a number of new customers.

我們正在贏得一些新客戶。

So when you win a new customer, invariably, I figure -- I look at it as winning new market share.

因此，當你贏得新客戶時，我認為 - 我總是將其視為贏得新的市場份額。

And we've won 10 Tier 1-scale opportunities with new customers this year.

今年，我們已經贏得了 10 個一級規模的新客戶機會。

In the first year of any of those, you typically don't do a huge amount of revenue, but it's a foundational spot that you can grow your business on over time.

在其中任何一個的第一年，您通常不會獲得大量收入，但這是您可以隨著時間的推移發展業務的基礎點。

I also believe that, while the industry continues to be broadly served by a number of competitors of ours, there are fewer and fewer people who can actually bring differentiated integrated technology to market.

我也相信，雖然我們的許多競爭對手繼續廣泛服務於該行業，但真正能夠將差異化集成技術推向市場的人越來越少。

And I think we are leveraging the strength we have in that position to not only selling our portfolio today but our road map tomorrow, and people are appreciative of that capability.

而且我認為我們正在利用我們在該職位上的優勢，不僅要出售我們今天的產品組合，還要出售我們明天的路線圖，人們對這種能力表示讚賞。

Okay, great.

好的，太好了。

And then as my follow-up, I just wanted to check in with your language around the fourth quarter operating profit.

然後作為我的後續行動，我只想用你的語言檢查一下第四季度的營業利潤。

Was that the same as what you were saying before?

這和你之前說的一樣嗎？

Where you were talking about EPS profit previously in the fourth quarter?

您之前在哪裡談論第四季度的每股收益利潤？

Or was it always operating profit that you were discussing?

還是您一直在討論營業利潤？

It has always been operating profit that we've discussed.

我們一直在討論營業利潤。

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。

I've got a question and a follow-up.

我有一個問題和一個後續行動。

First, on the vertical mix, I appreciate the slide you've included here.

首先，在垂直組合方面，我感謝您在此處提供的幻燈片。

Just want to see if you could talk a little bit about how you expect the vertical mix to trend over, say, the next year or so?

只是想看看您是否可以談談您對垂直組合的預期趨勢如何，比如說，明年左右？

When you look at your pipeline, your product mix, the coming 800-gig, making an assumption that we should see ICPs rising, maybe cable falling.

當你查看你的管道、你的產品組合、即將到來的 800 兆時，假設我們應該看到 ICP 上升，也許電纜下降。

Just if you could give us a little bit more color on how you see this evolving?

能否就您如何看待這種演變提供更多色彩？

Yes.

是的。

So again, I think, as Tom mentioned, the compact modular space being a market that's growing at 29% towards that $3.6 billion market, we think we're going to see significant traction along both ICPs as well as Tier 1s with that Groove compact modular platform with open line systems and us being in a -- obviously in a take share position in terms of our aggressiveness towards the market.

因此，我再次認為，正如 Tom 提到的那樣，緊湊型模塊化空間是一個以 29% 的速度增長到 36 億美元市場的市場，我們認為我們將看到 ICP 和 Tier 1s 對 Groove compact 的巨大吸引力帶有開放式線路系統的模塊化平台，我們處於 - 就我們對市場的進取性而言顯然處於佔有份額的位置。

So I'd expect to see both ICPs continue in a share gain mode.

因此，我希望看到兩個 ICP 繼續保持份額增長模式。

In Tier 1s, as Tom mentioned, we've closed 10 of them, and that's planted the seeds.

在第 1 層，正如 Tom 提到的，我們已經關閉了其中的 10 個，這就是種下的種子。

Those should be in growth mode as we look forward over the next year or so moving forward.

當我們期待明年左右的前進時，這些應該處於增長模式。

My commentary would be the -- our ICE6 will be first deployed with ICPs.

我的評論是——我們的 ICE6 將首先與 ICP 一起部署。

They drive technology.

他們推動技術。

And I think we're well positioned there to gain market share.

而且我認為我們在獲得市場份額方面處於有利地位。

In ICPs, we are also seeing success with subsea.

在 ICP 中，我們也看到了海底的成功。

That's with ICE4 today, but also there is an intense interest in ICE6.

這就是今天的 ICE4，但也有對 ICE6 的濃厚興趣。

That growth will obviously come later than next year.

這種增長顯然會晚於明年。

And in the cable space, we have a significant opportunity, though it's too early to call, you should keep your eye out on the DRX.

在有線電視領域，我們有一個重要的機會，雖然現在下結論還為時過早，但你應該密切關注 DRX。

This disaggregated HDEA model that the cable guys are looking to deploy, it's later, obviously, than many had anticipated.

有線電視人員正在尋求部署的這種分解 HDEA 模型，顯然比許多人預期的要晚。

But I think we are well positioned to grow in that space with the DRX platform.

但我認為我們已經做好準備，可以通過 DRX 平台在該領域實現增長。

That will be a slow growth, but over time, I see significant opportunity.

這將是一個緩慢的增長，但隨著時間的推移，我看到了巨大的機會。

And then just the follow-up to that would be, what are you thinking about the timing and effect of ZR and ZR plus pluggable on your business?

然後只是後續行動，您如何看待 ZR 和 ZR pluggable 對您的業務的時間和影響？

Yes.

是的。

The ZR, we view that as certainly impacting a small portion of our market.

ZR，我們認為這肯定會影響我們市場的一小部分。

I wouldn't call it meaningful.

我不會稱之為有意義。

I don't like to lose any type of opportunity, but it's not meaningful.

我不想失去任何類型的機會，但這沒有意義。

We are actually going to plan on using the ZR, in our applications, we have no intention of using our kind of scarce DSP and PIC resources to create commodities.

我們實際上打算使用ZR，在我們的應用程序中，我們無意使用我們這種稀缺的DSP和PIC資源來創造商品。

We're going to enjoy the cost structure of commodities, and we will incorporate that, where it makes sense, into our platforms.

我們將享受商品的成本結構，我們將在有意義的地方將其納入我們的平台。

In regard to the ZR plus, it's still uncertain.

至於ZR plus，目前還不確定。

There's still no standard.

還是沒有標準。

I'm intent upon using our XR portfolio to really offset what the ZR plus could do.

我打算使用我們的 XR 產品組合來真正抵消 ZR plus 的功能。

Our XR provides not only cost-effective transmission, probably at better reaches than the ZR plus, and it also provides the ability to build intelligent networks, not just point-to-point transmission service.

我們的XR不僅提供高性價比的傳輸，可能覆蓋範圍比ZR plus更好，而且它還提供構建智能網絡的能力，而不僅僅是點對點的傳輸服務。

And our next question today comes from Tim Savageaux of Northland Capital markets.

我們今天的下一個問題來自 Northland Capital markets 的 Tim Savageaux。

Congrats on the results and outlook.

祝賀結果和前景。

First question is on kind of customer profile.

第一個問題是關於客戶資料的種類。

You mentioned you had one 10% customer in the quarter.

你提到你在本季度有一個 10% 的客戶。

I wonder if you could kind of characterize it -- characterize that customer around Tier 1 or traditional type customers and maybe provide a little more color as you have in the past on who -- beyond that, who some of your key customers were by vertical and then I have a follow-up?

我想知道您是否可以描述一下它的特徵——描述 1 級客戶或傳統類型客戶的特徵，並可能像過去一樣提供更多關於誰的顏色——除此之外，你的一些主要客戶是垂直的然後我有一個跟進？

Sure.

當然。

Yes, our largest was a North America Tier 1. It's a customer that's often our #1 customer.

是的，我們最大的是北美一級。它的客戶通常是我們的第一大客戶。

We continue to enjoy significant business with them.

我們繼續享受與他們的重要業務。

As we talked about, I think, last quarter, they deployed a significant amount of new footprint this year.

正如我們所說，我認為，上個季度，他們今年部署了大量新足跡。

We continue to do not only long-haul with them but also some metro and some repositioning subsea with them.

我們不僅繼續與他們進行長途運輸，還與他們進行一些地鐵和一些重新定位的海底作業。

As I've talked to you before, that business, there will be some challenges as they move for the long-haul into a complementary direction with 400-gig, that is not where we are targeted.

正如我之前與您交談過的那樣，這項業務將面臨一些挑戰，因為他們從長遠來看會轉向與 400 兆字節互補的方向，這不是我們的目標。

But I see a substantive amount of opportunity, short, medium and long term, with this customer.

但我從這個客戶身上看到了大量的短期、中期和長期機會。

It's continued to be an exceptionally healthy relationship.

這一直是一種異常健康的關係。

I think the next largest customer was our new ICP that we won based upon the Groove in North America.

我認為下一個最大的客戶是我們基於北美 Groove 贏得的新 ICP。

That's a new relationship this year.

這是今年的新關係。

It's one of our Tier 1-scale customers.

它是我們的一級客戶之一。

They were not quite a 10% customer, but they had a substantive amount of business in Q3.

他們不是 10% 的客戶，但他們在第三季度有大量業務。

And I forecast that to continue to remain a fairly strong business.

我預測這將繼續保持相當強勁的業務。

Though, in the ICP space, as you know, it's a little lumpy, so you can't count on that every quarter but we do anticipate a strong Q4.

不過，正如你所知，在 ICP 領域，它有點起伏不定，所以你不能指望每個季度都有這種情況，但我們確實預計第四季度會表現強勁。

We also anticipate that our ICE6 is well positioned within that market.

我們還預計我們的 ICE6 在該市場中處於有利地位。

One of our other large customers was a European Tier 1 building a new network for a long haul.

我們的其他大客戶之一是歐洲一級供應商，他們正在建設一個新的長期網絡。

It's been a long-term customer that's doing a technology refresh, and they've upgraded to our latest technology.

這是一個正在進行技術更新的長期客戶，他們已經升級到我們的最新技術。

So that's a smattering of the largest customers that drove some good opportunity in Q3, Tim.

所以這是少數最大的客戶，他們在第三季度帶來了一些好機會，蒂姆。

That is great color, and I appreciate it.

那是很棒的顏色，我很欣賞。

Moving onto that, I know the question was asked about verticals over time.

繼續說下去，我知道這個問題隨著時間的推移被問到關於垂直行業的問題。

But as you look specifically into Q4, and I guess you sort of mentioned it, and Q3 was heavily driven by ICPs.

但是當你專門研究第四季度時，我猜你有點提到了它，而第三季度在很大程度上是由 ICP 驅動的。

Do you expect that to remain the case?

你希望這種情況保持下去嗎？

And if you could provide any commentary on the cable vertical?

如果你能提供任何關於電纜垂直的評論？

That remains weak.

那仍然很弱。

Obviously, historically, you've had a very significant customer there.

顯然，從歷史上看，你在那裡有一個非常重要的客戶。

Maybe you could offer some commentary similar to what you've done on your traditional Tier 1 about any expectations for cable in particular or that large customer -- or case for cable in general or that large customer in particular?

也許您可以提供一些評論，類似於您在傳統的第 1 層所做的評論，關於對特定電纜或那個大客戶的任何期望 - 或者一般電纜或特定大客戶的案例？

Yes.

是的。

We actually have more than one large customer in cable.

我們實際上在電纜方面有不止一個大客戶。

People talk about our North America large customer like it's the only cable guy we have, it's just not a correct reflection.

人們談論我們的北美大客戶時就好像它是我們唯一的有線電視人員一樣，這只是不正確的反映。

We are actually a pretty strong presence in Europe in cable, also.

實際上，我們在歐洲的有線電視業務也非常強大。

But to your specific question, that customer, as we said, is working through a significant inventory position.

但是對於您的具體問題，正如我們所說，該客戶正在處理大量庫存。

You will see that business grow in Q4 off of a very soft Q3 as they start bumping into capacity type of limitations that we are happy to help them with.

你會看到業務在第四季度從非常疲軟的第三季度開始增長，因為他們開始遇到容量類型的限制，我們很樂意幫助他們。

I'm excited about the cable space in general.

總的來說，我對電纜空間感到興奮。

The DRX is now well positioned in a number of labs.

DRX 現在已在許多實驗室中得到很好的應用。

And we won't see any real demand out of that in the early part of next year.

我們不會在明年年初看到任何真正的需求。

But our success in cable, over time, I think, has a real opportunity to have an inflection up, based upon the receptivity of the DRX.

但我認為，隨著時間的推移，我們在電纜方面的成功有一個真正的機會，可以根據 DRX 的接受度進行調整。

So it's something to pay attention to.

所以這是要注意的事情。

Our portfolio is being well received by the cable space.

我們的產品組合深受有線電視領域的歡迎。

And they are one of the top segments that are interested in the XR technology, as you can imagine.

正如您可以想像的那樣，他們是對 XR 技術感興趣的頂級細分市場之一。

I mean, it's ideally positioned for 5G and cable distribution.

我的意思是，它非常適合 5G 和電纜分配。

So I think that the richness of the conversations, the engagement between executives and people below executives has probably not been stronger than it is today.

因此，我認為對話的豐富性、高管與高管下屬之間的參與可能沒有今天那麼強烈。

That has to turn into bookings.

那必須變成預訂。

And I think Q4 will be stronger than Q3.

而且我認為Q4會比Q3強。

(Operator Instructions)

（操作員說明）

Today's next question comes from Samik Chatterjee of JPMorgan.

今天的下一個問題來自摩根大通的 Samik Chatterjee。

Tom, I know you mentioned a couple of times the adoption of the DRX router that you're seeing.

湯姆，我知道你提到過幾次你看到的 DRX 路由器的採用。

I just wanted to ask more broadly, if you can quantify for us in terms of your order book, how much of your order book is kind of open disaggregation products, like new open line systems, et cetera?

我只是想更廣泛地問，如果你能根據你的訂單為我們量化，你的訂單中有多少是開放式分解產品，比如新的開放式線路系統等等？

What are you really seeing?

你真正看到的是什麼？

And so if you can quantify that and maybe compare that to what you had maybe a year ago so that we get some milestones in terms of tracking the adoption there?

因此，如果您可以對其進行量化，並可能將其與一年前的情況進行比較，以便我們在跟踪那裡的採用方面取得一些里程碑？

And then I have a follow-up.

然後我有一個後續行動。

Yes.

是的。

It's actually a good question.

這實際上是一個很好的問題。

In terms of percent of portfolio and something we'll think about depicting for you maybe in our next call in a better respect.

就投資組合的百分比和我們會考慮為您描述的內容而言，我們可能會在下一次電話會議中更好地尊重您。

Here's what I'll tell you.

這就是我要告訴你的。

The compact modular platforms allow for an insertion into existing footprint at great ease along with open line systems, and we're seeing that as a much larger portion of our portfolio.

緊湊的模塊化平台允許與開放式線路系統一起輕鬆地插入現有的佔地面積，我們將其視為我們產品組合中更大的一部分。

The last 3 quarters, we've had a ton of new footprint as well as more and more open line system insertion both with our existing products as well as with the Groove product.

在過去的 3 個季度中，我們有大量的新足跡以及越來越多的開放式線路系統插入，包括我們現有的產品和 Groove 產品。

So that has been increasing, I'd say, by a factor of 2 over the last couple of quarters in terms of the importance, which allows us to position ourselves to gain share on a go-forward basis.

因此，我想說，就重要性而言，在過去幾個季度中，它一直在增加 2 倍，這使我們能夠定位自己以在前進的基礎上獲得份額。

But really, really good question.

但真的，非常好的問題。

And that's, again, a great part of what we're seeing in this open and disaggregated world.

這又是我們在這個開放和分散的世界中看到的很大一部分。

In addition, we announced a trial with Telefónica -- a network deployment with Telefónica, first in Germany, that was publicly announced.

此外，我們還宣布了與 Telefónica 的一項試驗——Telefónica 的網絡部署首先在德國公開宣布。

Obviously, that's a nice global property.

顯然，這是一個不錯的全局屬性。

And as we see this open DRX disaggregated router, it marries up quite nicely with our products on the edge-offering layer 2 with our XTM series to really offer both solution for mobile fronthaul and backhaul, which we call ex-haul as well as what Tom referenced for the cable industry in deep fiber solutions.

當我們看到這個開放的 DRX 分解路由器時，它與我們在邊緣提供第 2 層的產品與我們的 XTM 系列很好地結合在一起，真正為移動前傳和回傳提供解決方案，我們稱之為 ex-haul 以及什麼Tom 在深度光纖解決方案方面為電纜行業提供了參考。

And so we see both the pipeline for those products increasing as well as bookings for those products increasing on a quarterly basis as we go forward.

因此，隨著我們的前進，我們看到這些產品的管道在增加，而且這些產品的預訂量每季度都在增加。

And as Tom mentioned in his prepared comments, the 5G market is going to be a multiyear investment curve for the company and for the industry.

正如湯姆在他準備好的評論中提到的那樣，5G 市場將成為公司和行業的多年投資曲線。

Yes.

是的。

A real quick color on open.

打開時真正快速的顏色。

Infinera has unfortunately been labeled as a closed/proprietary type of supplier.

不幸的是，Infinera 被標記為封閉/專有類型的供應商。

And it's never been further from the truth.

它從來沒有遠離事實。

They say because of our PIC, we're proprietary.

他們說因為我們的 PIC，我們是專有的。

I think our customer base in the market is finally understanding that the technology of the PIC has nothing to do with open and disaggregated.

我認為我們的市場客戶群終於明白 PIC 技術與開放和分類無關。

We are working very hard and growing market share in open line systems.

我們正在努力工作，並在開放式線路系統中擴大市場份額。

The Groove is an open disaggregated transponder platform, and the DRX is an open disaggregated IP solution.

Groove 是一個開放式分解轉發器平台，而 DRX 是一個開放式分解 IP 解決方案。

We're not doing it just to be good sports in the industry, however.

然而，我們這樣做不僅僅是為了成為行業中的好運動。

We believe, in an open world, the advantage comes to whoever delivers the best transponder.

我們相信，在一個開放的世界中，誰能提供最好的轉發器，誰就會獲得優勢。

And we are convinced that our technology with our vertically integrated PIC and our vertical DSP, we create an unfair advantage for ourselves by executing on the optical platform and deploying that across open line systems, ours or others.

我們相信，我們的技術與我們的垂直集成 PIC 和我們的垂直 DSP，我們通過在光學平台上執行並將其部署在我們或其他人的開放式線路系統上，為我們自己創造了不公平的優勢。

It's another reason that you'll hear us talking a lot about our investment in Transcend.

這是您會聽到我們經常談論我們對 Transcend 的投資的另一個原因。

Transcend starts playing a more strategic role as customers deploy disaggregated platforms because carriers are still looking for one neck to grab around operational execution and efficiency.

隨著客戶部署分類平台，Transcend 開始發揮更具戰略意義的作用，因為運營商仍在尋找一條脖子來抓住運營執行和效率。

Our automation platform provides that one neck to grab.

我們的自動化平台提供了一個可以抓住的脖子。

So you'll see us continue to talk about open disaggregated optical leadership and automation.

所以你會看到我們繼續談論開放式分解光學領導和自動化。

Finally, I would pay attention to our TIP announcement today.

最後，我要注意我們今天的 TIP 公告。

TIP, we've made a press release, and you'll see us, a customer and TIP talking about our role the DRX is playing in this new architecture in the industry.

TIP，我們發布了新聞稿，您會看到我們，一位客戶和 TIP 談論我們 DRX 在行業新架構中扮演的角色。

You had a follow-up question as well?

你也有後續問題嗎？

Yes.

是的。

Sorry, on the -- more on the cost side, obviously, there seems to be more move towards outsourcing.

抱歉，在成本方面，顯然，似乎更多的是轉向外包。

How should I think about that impacting your longer-term targets in terms of 50% gross margin?

我應該如何考慮這對您 50% 毛利率的長期目標的影響？

Like, does that lower the revenue base that you now need to get to that target?

比如，這是否會降低您現在實現該目標所需的收入基礎？

How should I think of the overall implications here and getting to your long-term margin targets from more outsourcing?

我應該如何考慮這裡的總體影響以及通過更多外包實現您的長期利潤目標？

Sure.

當然。

Yes.

是的。

So I mean, the outsourcing model, as it relates to the system manufacturing, is really designed to give us flexibility to allow us to serve our customers and our customers' needs more effectively and more efficiently.

所以我的意思是，與系統製造相關的外包模型實際上旨在為我們提供靈活性，使我們能夠更有效、更高效地服務於我們的客戶和客戶的需求。

It's one of the examples that I spoke of in terms of how we're looking at growing and scaling the business in 2020 to be able to address this increasing demand and -- that we're seeing from the customers and then the market growth.

這是我談到的例子之一，我們正在考慮如何在 2020 年發展和擴展業務，以應對這種不斷增長的需求——我們從客戶和市場增長中看到的。

So certainly, the supply chain transformation that we're undergoing does enable us to offer that and, as well, gives us an opportunity to get to the OpEx levels that we need to.

因此，當然，我們正在經歷的供應鏈轉型確實使我們能夠提供這一點，同時也讓我們有機會達到我們需要的 OpEx 水平。

In addition to that, it impacts our margin efficiency.

除此之外，它還會影響我們的利潤效率。

Certainly, we're very focused on bringing that margin up to what I will not preview in terms of what that margin range is.

當然，我們非常專注於將利潤率提高到我不會預覽的利潤率範圍。

But certainly, with our Q4 results, we will talk about both our expectations for 2020, and also the leverage and efficiency that we think the business model can achieve in the next 2 years.

但可以肯定的是，根據我們的第四季度業績，我們將討論我們對 2020 年的預期，以及我們認為該商業模式在未來兩年內可以實現的槓桿作用和效率。

Overall, it positions us for margin expansion as we go forward.

總體而言，它使我們在前進的過程中為利潤率擴張做好了準備。

The particular actions we took this year, again, we took over the summer, as we mentioned.

正如我們所提到的，我們今年採取的具體行動再次在整個夏天進行。

What was supposed to be a slow summer, turned out not to be.

本來應該是一個緩慢的夏天，結果卻不是。

We expect that to scale in full effect in 2020, which will afford some margin expansion.

我們預計到 2020 年將全面擴大規模，這將帶來一定的利潤率擴張。

Our next question today comes from Jim Suva of Citi.

我們今天的下一個問題來自花旗銀行的吉姆蘇瓦。

My question is, first of all, for Nancy.

我的問題首先是針對南希的。

You've only been in the CFO seat a few weeks, and you're working through a lot of ERP issues.

您擔任首席財務官才幾週時間，就遇到了很多 ERP 問題。

It sounds like you'll have it, if I hear your comments correctly, pretty much fully under control as you exit the December quarter for implementing all 3 ERP systems.

如果我沒有聽錯你的評論，聽起來你會擁有它，當你退出實施所有 3 個 ERP 系統的 12 月季度時，幾乎完全處於控制之下。

Am I right on that?

我說得對嗎？

Or is it taking a little bit longer because that is part of the cause of the delay for the Q3 earnings and why we're talking today?

或者它需要更長的時間，因為這是第三季度收益延遲的部分原因，也是我們今天談論的原因？

Sure.

當然。

So as anyone -- and you guys have followed a lot of companies who have gone through integrations both as a result of an acquisition but also companies who just simply are upgrading and integrating their ERP.

因此，作為任何人 - 你們已經關注了很多公司，這些公司通過收購進行了整合，但也有一些公司只是簡單地升級和整合他們的 ERP。

This was a very complex integration, 3 different instances, 2 from the Coriant side of the house and the Infinera instance.

這是一個非常複雜的集成，有 3 個不同的實例，2 個來自 Coriant 一側的房子和 Infinera 實例。

Bringing those all together was a very significant effort.

將所有這些整合在一起是一項非常重要的工作。

We did complete that.

我們確實完成了。

We have closed our first quarter on the combined and integrated system.

我們已經結束了第一季度的組合和集成系統。

I will also say that it's an ongoing process to gain all of the efficiencies that one instance will bring.

我還要說的是，要獲得一個實例帶來的所有效率，這是一個持續的過程。

So we will continue to work to improve our close time as well as the benefits that the system can bring us in terms of how we work, working smarter, closing better, having better analytics and all of the benefits that, that will bring to support the business.

因此，我們將繼續努力改善我們的關閉時間以及該系統在我們的工作方式、更智能地工作、更好地關閉、更好的分析以及將帶來支持的所有好處方面可以給我們帶來的好處這生意。

So first quarter closed.

所以第一季度結束了。

We will continue to evolve over the next several quarters as we get all of the benefits out of that one system.

隨著我們從該系統中獲得所有好處，我們將在接下來的幾個季度中繼續發展。

And I'll just add.

我只是補充一下。

Converting 3 ERP systems is challenging.

轉換 3 個 ERP 系統具有挑戰性。

You throw into that mix, moving your entire supply chain to an outsourced model at the same time, it's a monumental task.

您投入其中，同時將整個供應鏈轉移到外包模式，這是一項艱鉅的任務。

I'm extraordinarily pleased with the work of the team.

我對團隊的工作非常滿意。

And I would say, this is an important part, those items are the most substantive operational risks of this integration, and they're now behind us.

我要說的是，這是一個重要的部分，這些項目是這種整合中最實質性的運營風險，它們現在已經過去了。

To Nancy's point, we're not done.

就南希而言，我們還沒有完成。

I would say we're probably 90% done.

我會說我們可能已經完成了 90%。

We have things to improve and to continue to learn from.

我們有需要改進和繼續學習的地方。

But I do believe that the close represents a significant milestone also in that the discoveries that we made, we won't have to make again, and that's a big milestone.

但我確實相信，關閉代表了一個重要的里程碑，因為我們所做的發現，我們將不必再次進行，這是一個重要的里程碑。

Great.

偉大的。

And then my follow-up question is on the ERP system.

然後我的後續問題是關於 ERP 系統的。

Typically, when you implement 2 into 1 or in your situation, 3 into 1, there's extra operating costs and operating burden from that.

通常，當您實施 2 合 1 或在您的情況下實施 3 合 1 時，會產生額外的運營成本和運營負擔。

Is that contemplated and included in your Q4 guidance?

您的 Q4 指南中是否考慮並包含了這一點？

Or will you have even more cost savings in the March quarter as far as kind of operating margin or operating expenses coming down?

或者，就營業利潤率或營業費用的下降而言，您是否會在 3 月季度節省更多成本？

I don't know, again, if you have extra costs associated with this integration, also, that we should be thinking about?

我不知道，如果你有與此集成相關的額外成本，我們應該考慮嗎？

Yes, certainly.

是的，當然了。

We will gain efficiencies through having 1 ERP, and we have been thinking through our integration efforts and the plans for the year included benefits from that.

我們將通過擁有 1 個 ERP 來提高效率，我們一直在思考我們的整合工作，今年的計劃包括從中受益。

I will also say that, as we go into 2020, there are other efficiencies that we can gain that will enable us to leverage this model and to leverage our new supply chain and all of the actions that were taken in 2019 are positioning us to be able to scale more effectively and efficiently in the 2020 time frame.

我還要說的是，隨著我們進入 2020 年，我們可以獲得其他效率，這將使我們能夠利用這種模式並利用我們的新供應鏈，而 2019 年採取的所有行動都使我們能夠成為能夠在 2020 年的時間框架內更有效地擴展。

And our next question today comes from Dave Kang of B. Riley.

我們今天的下一個問題來自 B. Riley 的 Dave Kang。

A couple of questions.

幾個問題。

Regarding your fourth quarter EPS outlook, what's your FX assumption?

關於您的第四季度每股收益展望，您的外匯假設是什麼？

And my follow-up question is, with all the momentum you have, how should we think about first quarter seasonality?

我的後續問題是，鑑於你的勢頭，我們應該如何考慮第一季度的季節性？

So for Q4, or I should -- let's back up for Q3.

所以對於第四季度，或者我應該——讓我們支持第三季度。

We did see a more significant FX impact than we had anticipated coming into the quarter.

我們確實看到本季度的外匯影響比我們預期的要大。

It's a result of everything that we've talked about today.

這是我們今天所討論的一切的結果。

The significant movement of our intercompany resources to the new European distribution center in addition to the outsourcing of our supply chain for systems manufacturing, the level of transactions and the number of transactions and movement of materials caused a larger impact than we had originally anticipated.

除了我們的系統製造供應鏈外包外，我們公司間資源向新歐洲配送中心的重大轉移、交易水平和交易數量以及材料移動造成的影響比我們最初預期的要大。

For Q4, we would expect to be on a more normalized range.

對於第 4 季度，我們預計會處於更加正常化的範圍內。

We're not anticipating anything unusual in the Q4 time frame.

我們預計第四季度不會出現任何異常情況。

In regard to Q1, as you well know, our industry typically experiences Q1 that is about 15%, 14% softer than Q4.

關於第一季度，眾所周知，我們的行業通常會經歷大約 15% 的第一季度，比第四季度軟 14%。

That is driven by customer demand, where they just get their new budgets and start planning for the year.

這是由客戶需求驅動的，他們剛剛獲得新的預算並開始計劃這一年。

I would anticipate our Q1 to be sequentially down from Q4.

我預計我們的第一季度將從第四季度開始依次下降。

It's certainly too early to call.

現在打電話肯定為時過早。

But unlike most years, we are carrying a significant backlog into our Q1, as we have talked about growing backlog for 4 quarters in a row.

但與大多數年份不同的是，我們在第一季度有大量積壓，因為我們已經談到連續 4 個季度積壓增加。

If we look at our current bookings outlook for Q4, we anticipate that Q4 backlog will grow yet again.

如果我們查看當前第四季度的預訂前景，我們預計第四季度積壓訂單將再次增長。

So we will go into Q1 with a stronger backlog than usual, but we do expect to see a somewhat softening of Q1 bookings.

因此，我們將以比往常更多的積壓進入第一季度，但我們確實預計第一季度的預訂量會有所下降。

So that's about all I can comment on a quarter from now.

這就是我對從現在開始的一個季度所能發表的評論。

And my last question is, on last quarter's call, you talked about being approached by a couple of DSP customers.

我的最後一個問題是，在上個季度的電話會議上，您談到了一些 DSP 客戶正在與您接洽。

Any closure there?

那裡有關閉嗎？

We continue to see more and more opportunity.

我們繼續看到越來越多的機會。

And I think scarcity in the market of -- and how difficult it is, not only on the DSP side but obviously integrating that into an open optic, whether it be a DCO, and obviously, in the future, a pluggable.

而且我認為市場上的稀缺性——它有多困難，不僅在 DSP 方面，而且顯然將其集成到一個開放的光學器件中，無論它是 DCO，顯然，在未來，一個可插拔的。

So we continue to have lots of activity.

所以我們繼續有很多活動。

And as we see more progress and we're ready to announce, we will make that public.

當我們看到更多進展並準備好宣佈時，我們會將其公之於眾。

But very, very good engagement and activity there.

但是那裡的參與度和活動非常非常好。

I'd like to thank all of you for joining us today, and I look forward for us having the opportunity to give you updates as we continue on this exciting journey.

我要感謝大家今天加入我們，我期待著我們有機會為您提供最新消息，因為我們將繼續這一激動人心的旅程。

To the veterans, I want to thank you, the day after Veteran's Day, for your service to the country.

對於退伍軍人，在退伍軍人節後的第二天，我要感謝你們為國家所做的貢獻。

Have a great day.

祝你有美好的一天。

This concludes today's conference call.

今天的電話會議到此結束。

You may disconnect your lines at this time, and have a wonderful day.

此時您可以斷開線路，度過美好的一天。