Infinera Corp (INFN) 2023 Q3 法說會逐字稿

Hello. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Infinera Corp. Q3 2023 Earnings Call. (Operator Instructions) Thank you. Amitabh Passi, Head of Investor Relations, you may begin.

你好。我叫克里斯，今天我將擔任你們的會議操作員。現在，我歡迎大家參加英飛朗公司 2023 年第三季財報電話會議。 （操作員說明）謝謝。投資人關係主管 Amitabh Passi，您可以開始了。

Thank you, Chris, and good afternoon, everyone. Welcome to Infinera's third quarter fiscal 2023 conference call. A copy of the press release issued by Infinera today is available on the Investor Relations section of the website. Additionally, this call is being recorded and will be available for replay from our website.

謝謝克里斯，大家下午好。歡迎參加英飛朗 2023 財年第三季電話會議。英飛朗今天發布的新聞稿副本可在網站的投資者關係部分取得。此外，本次通話正在錄音中，可在我們的網站上重播。

Today's call will include projections and estimates that constitute forward-looking statements, including, but not limited to, statements related to the accounting and financial matters referenced in the press release, current Form 10 -- 8-K and notification of late filing that we'll file today. Our business plans, product development and growth opportunities, including progress against strategic priorities, including with respect to vertical integration and its anticipated benefits, trends, competition and customers.

今天的電話會議將包括構成前瞻性陳述的預測和估計，包括但不限於與新聞稿中提到的會計和財務事項相關的陳述、當前的表格 10 - 8-K 以及我們延遲提交的通知今天就歸檔。我們的業務計劃、產品開發和成長機會，包括策略優先事項的進展，包括垂直整合及其預期效益、趨勢、競爭和客戶。

Furthermore, expectations regarding the macroeconomic environment, expectations regarding our inventory levels and industry-wide CapEx dynamics, expectations regarding our subsystems group and its impact on our financial results, expectations regarding potential governmental funding, projected year-over-year drivers of our key financial performance metrics, expectations regarding our future performance, revenue growth, margin expansion, generation of cash flow from operations and EPS expansion and a preliminary financial outlook for the fourth quarter of 2023.

此外，對宏觀經濟環境的預期、對我們的庫存水準和全產業資本支出動態的預期、對我們的子系統組的預期及其對我們財務表現的影響、對潛在政府資金的預期、我們主要財務的預期同比驅動因素業績指標、對未來業績的預期、收入成長、利潤率擴張、營運產生的現金流和每股盈餘擴張以及 2023 年第四季的初步財務前景。

These statements are subject to risks and uncertainties that could cause Infinera's results to differ materially from management's current expectations. Actual results may differ materially as a result of various risk factors, including those set forth in our annual report on Form 10-K for the year ended on December 31, 2022, as filed with the SEC on February 27, 2023, and in our quarterly report on Form 10-Q for the quarter ended July 1, 2023, as filed with the SEC on August 9, 2023, as well as subsequent reports filed with or furnished to the SEC from time to time. 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.

這些陳述受到風險和不確定性的影響，可能導致英飛朗的業績與管理階層目前的預期有重大差異。由於各種風險因素，實際結果可能會存在重大差異，包括我們於 2023 年 2 月 27 日向 SEC 提交的截至 2022 年 12 月 31 日的 10-K 表格年度報告以及我們的於2023 年8 月9 日向SEC 提交的截至2023 年7 月1 日季度的10-Q 表格季度報告，以及不時向SEC 提交或提供的後續報告。請注意，所有聲明均截至今天，英飛朗沒有義務更新或修改任何前瞻性聲明以反映本次電話會議之後可能出現的事件或情況。

Today's conference call includes references to non-GAAP financial measures. Pursuant to Regulation G, we've provided a recon of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings press release for this quarter, which is available on the Investor Relations section of our website.

今天的電話會議提到了非公認會計準則財務指標。根據 G 條例，我們在本季度的收益新聞稿中提供了這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對比，該新聞稿可在我們網站的投資者關係部分取得。

And finally, as a reminder, we'll allow for plenty of time for Q&A today, so we ask that you limit yourselves to one question and one follow-up, please.

最後，提醒一下，今天我們將留出充足的時間進行問答，因此請您將自己限制在一個問題和一個後續行動上。

I'll now turn the call over to our Chief Executive Officer, David Heard.

我現在將把電話轉給我們的執行長戴維·赫德 (David Heard)。

Thanks, Amitabh. Good afternoon, and thanks for joining us today. I'll begin with the highlights from our preliminary third quarter results and then turn the call over to Nancy to cover the preliminary financial details of our third quarter performance and the outlook for the fourth quarter and the items referenced in the press release and Form 8-K we filed earlier this afternoon.

謝謝，阿米塔布。下午好，感謝您今天加入我們。我將首先介紹我們第三季度初步業績的要點，然後將電話轉給 Nancy，介紹我們第三季度業績的初步財務細節、第四季度的前景以及新聞稿和表格 8 中引用的項目-K 我們今天下午早些時候提交了申請。

Before I jump into the details of the quarter, I want to pause, take a step back and focus on our quarterly accomplishments at a high level. Overall, the third quarter was another solid quarter for us in which all preliminary financial metrics, revenue growth, margin, operating margin and EPS are expected to exceed the midpoint of our outlook range.

在詳細介紹本季度的細節之前，我想暫停一下，退後一步，重點關注我們的季度成就。總體而言，第三季度對我們來說又是一個穩健的季度，所有初步財務指標、收入成長、利潤率、營業利潤率和每股盈餘預計將超過我們預期範圍的中點。

We delivered strong bookings with a book-to-bill ratio above 1. We continue to land new Tier 1 design wins for our Systems business. We won additional orders for our Subsystems business and are shipping our first vertically integrated metro systems this quarter, all while we expanded profitability on a year-over-year basis.

我們交付了強勁的預訂，訂單出貨比超過 1。我們繼續為我們的系統業務贏得新的一級設計勝利。我們的子系統業務贏得了更多訂單，並在本季度交付了我們的第一個垂直整合的地鐵系統，同時我們的獲利能力逐年擴大。

Furthermore, as we look ahead to Q4, we're forecasting growth to be generally in line with the consensus view. While capital markets and macroeconomic conditions have been challenging, we've been keeping our heads down and remaining focused on executing our plan. For the full year of 2023, we currently project that we're still on track to grow revenue and deliver our sixth consecutive year of revenue growth, expand operating profit and EBITDA and drive greater than a 25% improvement in earnings per share, which would represent our fourth consecutive year of significant EPS expansion. These accomplishments directly reflect the strong execution against the strategy we laid out in our past 2 Analyst Days and add to our track record of doing what we say we're going to do.

此外，當我們展望第四季時，我們預測成長將基本符合共識。儘管資本市場和宏觀經濟狀況一直充滿挑戰，但我們一直保持低調，並繼續專注於執行我們的計劃。對於 2023 年全年，我們目前預計我們仍有望實現收入成長，並實現連續第六年的收入成長，擴大營業利潤和 EBITDA，並推動每股收益提高 25% 以上，這將這是我們連續第四年實現每股收益大幅成長。這些成就直接反映了我們在過去 2 個分析師日所製定的策略的強勁執行力，並為我們兌現承諾的業績記錄增添了色彩。

Getting into some of the specifics of the quarter. Q3 marked the 14th quarter out of the last 15, which we believe we have met or exceeded our outlook range. Bookings in the quarter were up sequentially and on a year-over-year basis with most of the sequential growth driven by customers in EMEA and the Americas. On a year-to-date basis through Q3 and compared to the same period last year, we expect to report growth in revenue, expanded gross margin, increased operating margin and improved EBITDA.

深入了解本季的一些具體情況。第三季度是過去 15 個季度中的第 14 個季度，我們相信我們已經達到或超出了我們的預期範圍。本季度的預訂量環比和同比均有所增長，其中大部分環比增長是由歐洲、中東和非洲和美洲的客戶推動的。從今年第三季至今，與去年同期相比，我們預計將實現營收成長、毛利率擴大、營業利潤率增加和 EBITDA 改善。

Traction across our portfolio remained strong in the quarter, and I'd like to touch on some of the highlights, starting with our Systems group. First, we won new strategic deals globally, including wins with 2 Tier 1 service providers in Europe, several subsea consortium and an award to modernize and expand a nationwide network for a Tier 1 operator in Asia Pacific. The wins in Europe and subsea are especially noteworthy as these are new customer logos where we have no incumbency.

本季我們的產品組合仍然保持強勁勢頭，我想談談一些亮點，首先是我們的系統部門。首先，我們在全球贏得了新的策略交易，包括與歐洲 2 家一級服務供應商、多個海底財團的合作，以及為亞太地區一家一級營運商現代化和擴展全國網路的獎項。在歐洲和海底的勝利尤其值得注意，因為這些是我們沒有在職的新客戶標誌。

Second, we continued our momentum with U.S. hyperscalers with year-over-year growth in both revenue and bookings. The strength in this customer segment was broad-based spanning multiple customers' applications and Infinera products.

其次，我們持續保持與美國超大規模企業的合作勢頭，收入和預訂量均較去年同期成長。該客戶群的優勢廣泛，涵蓋多個客戶的應用程式和英飛朗產品。

And finally, we booked our first set of orders and recognized revenue from the metro win we referenced during last quarter's earnings call. As a reminder, this is a turnkey award with a major U.S. service provider, which includes our GX Metro platform, along with our software suite and support services.

最後，我們預訂了第一批訂單，並確認了我們在上個季度財報電話會議中提到的地鐵勝利的收入。提醒一下，這是與美國主要服務提供商的交鑰匙合同，其中包括我們的 GX Metro 平台以及我們的軟體套件和支援服務。

In our Subsystems group, a few noticeable accomplishments were: first, both the CFP2 and QSFP-DD versions of our 400-gig ICE-X pluggables are now commercially available. These 2 form factors give us flexibility of integrating our pluggables in our own metro platforms as well as in third-party hosts like routers and switches. In Q3, we received our first set of vertically integrated orders for our ICE-X pluggables and are in the process of shipping our first metro systems with our own pluggables this quarter. This is a significant milestone and accomplishment for us and is consistent with the expectations we laid out in our Investor Day. We expect margin benefits from our own vertically integrated metro platform to begin in 2024.

在我們的子系統小組中，取得了一些引人注目的成就：首先，我們的 400g ICE-X 可插拔產品的 CFP2 和 QSFP-DD 版本現已投入商用。這兩種外形尺寸使我們能夠靈活地將可插拔設備整合到我們自己的城域平台以及路由器和交換器等第三方主機中。在第三季度，我們收到了第一批 ICE-X 可插拔設備的垂直整合訂單，並正在本季度運送我們的第一個帶有我們自己的可插拔設備的地鐵系統。這對我們來說是一個重要的里程碑和成就，與我們在投資者日所設定的期望一致。我們預計我們自己的垂直整合地鐵平台的利潤將於 2024 年開始顯現。

Second, we remain on track to deliver the highest performing and lowest power 800-gig pluggable that will leverage 3-nanometer technology and enable our customers to reach greater distances and unmatched performance and economics, which also has landed us our first set of 800-gig component orders.

其次，我們仍致力於提供最高性能和最低功耗的800-g 可插拔電源，該產品將利用3 奈米技術，使我們的客戶能夠達到更遠的距離並獲得無與倫比的性能和經濟性，這也讓我們獲得了第一套800-g 可插拔電源。演出組件訂單。

And lastly, we're excited to see 4 new members of the Open XR Forum in the quarter. We've built a solid pipeline for both pluggables and components and received additional purchase orders spanning the entire portfolio. As our Subsystems business expands, we expect to benefit from higher margins from both the vertical integration of our metro portfolio, as I described earlier, and from the incremental operating leverage as we ramp the sales of external pluggables.

最後，我們很高興在本季看到 Open XR 論壇的 4 位新成員。我們已經為可插拔產品和組件建立了堅實的管道，並收到了涵蓋整個產品組合的額外採購訂單。隨著我們的子系統業務的擴展，我們預計將從我們的城域投資組合的垂直整合（如我之前所述）以及隨著我們增加外部可插拔設備的銷售而增加的營運槓桿中受益於更高的利潤。

In addition, we are continuing to pursue government funding available at both the state and Federal levels via programs like the CHIPS Act to continue to supply the U.S.-made optical semiconductors to secure critical supply chains. These issues are of increasing importance to our customers and as a company with U.S.-based optical semiconductor fabrication and advanced test and packaging, we believe we are well positioned for this opportunity.

此外，我們正在繼續透過《CHIPS 法案》等計畫尋求州和聯邦層級的政府資金，以繼續供應美國製造的光學半導體，以確保關鍵供應鏈的安全。這些問題對我們的客戶來說越來越重要，作為一家擁有美國光學半導體製造和先進測試和封裝能力的公司，我們相信我們已經為這個機會做好了準備。

In closing, my confidence in our strategy, portfolio and execution remains high as evidenced by our market share gains and financial progress over the past few years. In the short term, our customers are still going through a period of inventory digestion and remain cautious about spending in a recessionary environment. Our job in this environment is to focus on the highest priority spend areas which are broad fiber deployment, data center build-outs and new applications inside the data center, while taking more than our fair share of orders and managing spending tightly.

最後，我對我們的策略、投資組合和執行仍然充滿信心，過去幾年我們的市佔率成長和財務進展就證明了這一點。短期來看，我們的客戶仍在經歷庫存消化期，並且在經濟衰退的環境下對支出保持謹慎。在這種環境下，我們的工作是專注於最優先的支出領域，即廣泛的光纖部署、資料中心擴建和資料中心內的新應用程序，同時接受超出我們公平份額的訂單並嚴格管理支出。

In the long term, demand for bandwidth continues to grow as hyperscalers accelerate the rollout of artificial intelligence and machine learning workloads and service providers drive fiber deeper into networks pushing 100-gig to the edge, 400-gig in the metro and 800-gig in the core. It's apparent that the growth inside the data center over the next few years is creating new opportunities for our business. Clearly, coherent optical technologies and vertical integration are becoming more important than ever.

從長遠來看，隨著超大規模企業加速人工智慧和機器學習工作負載的推出，以及服務供應商將光纖深入網絡，推動邊緣100 G、城域400 G、城市800 G，對頻寬的需求將持續增長。核心。顯然，未來幾年資料中心內部的成長正在為我們的業務創造新的機會。顯然，相干光學技術和垂直整合變得比以往任何時候都更加重要。

Our guiding principles for the company remain unchanged and centered on continuing to expand market share in our Systems business across long-haul, subsea and metro, vertically integrating our metro portfolio with our own pluggables, which will expand margins, ramping up external sales of our pluggables, driving leverage in our business model and meaningfully expanding earnings per share.

我們對公司的指導原則保持不變，重點是繼續擴大長途、海底和城域系統業務的市場份額，將我們的城域產品組合與我們自己的可插拔產品垂直整合，這將擴大利潤，提高我們的外部銷售可插式設備，推動我們業務模式的槓桿作用，並有意義地擴大每股盈餘。

I'd like to thank the Infinera team and their dedication and unwavering commitment to our customers and one another and for continuing to deliver on innovation that matters. I'd also like to extend my thanks to our partners, customers and shareholders for their ongoing support. Finally, my thoughts [then] first [go out] to the people of the Ukraine and Middle East who are suffering through these very unthinkable times.

我要感謝英飛朗團隊以及他們對我們的客戶和彼此的奉獻精神和堅定不移的承諾，並繼續提供重要的創新。我還要感謝我們的合作夥伴、客戶和股東的持續支持。最後，我首先向正在經歷這些難以想像的時期的烏克蘭和中東人民表達我的思念。

I'd now like to hand the call over to Nancy to cover the preliminary financial details of the quarter and our outlook. Nancy?

我現在想將電話轉交給南希，介紹本季的初步財務細節和我們的前景。南希？

Thanks, David. Good afternoon, everyone. I will begin by covering our preliminary third quarter results and then provide a preliminary outlook for the fourth quarter. For your reference, we have included a GAAP to non-GAAP reconciliation of our preliminary financials in our press release. As a reminder, any financial commentary or metrics provided today are based on our preliminary non-GAAP results.

謝謝，大衛。大家下午好。我將首先介紹我們第三季的初步業績，然後提供第四季的初步展望。為了供您參考，我們在新聞稿中納入了我們初步財務數據的 GAAP 與非 GAAP 調整表。提醒一下，今天提供的任何財務評論或指標均基於我們的初步非公認會計原則結果。

Before I review our third quarter results, I'd like to provide some context on why we are providing ranges today and why the filing of our 10-Q is delayed as noted in the 2 SEC filings we made this afternoon.

在回顧我們第三季度的業績之前，我想提供一些背景信息，說明為什麼我們今天提供範圍，以及為什麼我們的 10-Q 報告延遲提交，正如我們今天下午向 SEC 提交的 2 份文件中所述。

During Q3, our external auditors informed us of a routine PCAOB inspection of their work papers that randomly included their audit of Infinera's 2022 financial statement. Late in the third quarter, our auditors asked about our method of revenue allocation between products and services and our documentation related to our quota close to cash and inventory cycle.

在第三季度，我們的外部審計師告知我們，PCAOB 對他們的工作底稿進行了例行檢查，其中隨機包括對英飛朗 2022 年財務報表的審計。在第三季末，我們的審計師詢問了我們在產品和服務之間分配收入的方法，以及與接近現金和庫存週期的配額相關的文件。

As a result, in connection with the quarter end close process, we reexamined the revenue recognition methodology we have been using historically as well as our internal control documentation processes. Subsequently, we have identified 2 material weaknesses in our internal control over financial reporting and have concluded that they were present as of December 31, 2022, and through the first 3 quarters of 2023.

因此，在季末結算流程中，我們重新審查了我們歷史上一直使用的收入確認方法以及我們的內部控製文件流程。隨後，我們發現了財務報告內部控制中的 2 個重大缺陷，並得出結論認為，這些缺陷截至 2022 年 12 月 31 日以及 2023 年前 3 季度都存在。

Based on our initial evaluation, we expect any adjustments to revenue will be shifts in allocation between revenue that is deferred and revenue that is recognized upon delivery and expect that there will be no lost revenue, only shifts in revenue between accounting periods.

根據我們的初步評估，我們預計對收入的任何調整都將是遞延收入和交付時確認收入之間分配的變化，並預計不會有收入損失，只會在會計期間之間發生收入變化。

In addition to providing preliminary ranges for Q3 on our call today, we will also be providing our preliminary outlook for the fourth quarter. The information we are providing reflects our expectations regarding the allocation of revenue under our updated methodology. The scope of this review is limited to the matters I described. Based on the progress we have made in addressing them in a compressed period of time, we would hope to file the 10-Q reasonably promptly.

除了在今天的電話會議上提供第三季的初步範圍外，我們還將提供第四季度的初步展望。我們提供的資訊反映了我們對根據更新的方法分配收入的預期。本次審查的範圍僅限於我所描述的事項。根據我們在短時間內解決這些問題所取得的進展，我們希望合理地及時提交 10-Q。

Turning to the performance in the quarter. I am pleased with the continued momentum in our business. Preliminary revenue of $378 million to $392 million is expected to come in above the midpoint of our outlook range. This performance was primarily driven by strength in the Americas and EMEA with both ICP and service provider customers. Geographically, we derived approximately 60% of our Q3 revenue from domestic customers, a level generally consistent throughout the year. There was one ICP customer that accounted for over 10% of our revenue in the quarter.

轉向本季的業績。我對我們業務的持續發展勢頭感到高興。預計初步收入為 3.78 億美元至 3.92 億美元，將高於我們展望範圍的中點。這項業績主要得益於美洲和歐洲、中東和非洲地區 ICP 和服務供應商客戶的實力。從地理上看，我們第三季營收的約 60% 來自國內客戶，這一水準全年基本一致。有一個 ICP 客戶占我們本季營收的 10% 以上。

Q3 preliminary gross margin of approximately 40% to 42% is expected to be above the midpoint of our outlook range and up on a year-over-year basis. Compared to the prior year, gross margin in the quarter benefited from higher vertical integration, continued relief in supply costs, product mix and ongoing cost improvements and quality initiatives.

第三季初步毛利率約為 40% 至 42%，預計將高於我們展望範圍的中點，且較去年同期有所上升。與前一年相比，本季的毛利率受益於更高的垂直整合、供應成本的持續緩解、產品組合以及持續的成本改進和品質措施。

Overall, I'm encouraged by the gross margin trend in 2023 with gross margin progressing toward our goal of 40% for the year. This margin expansion supports my confidence in our ability to deliver continued improvement in 2024 and beyond as we vertically integrate our metro portfolio and ramp up our external pluggables revenue.

總體而言，我對 2023 年的毛利率趨勢感到鼓舞，毛利率正在朝著我們今年 40% 的目標邁進。隨著我們垂直整合我們的城域網路產品組合併增加我們的外部可插拔收入，這種利潤率的擴張增強了我對我們在 2024 年及以後實現持續改進的能力的信心。

Preliminary operating margin in the quarter was 4.6% to 8% and above our outlook range. On a year-to-date basis, we expect to deliver higher operating margin compared to the same period last year, benefiting primarily from higher revenue and gross margins. Operating expenses in the quarter of $134 million were below our outlook range of $139 million to $143 million as we tightly manage quarterly spending while continuing to make substantial investments in our subsystems business. The resulting preliminary diluted EPS is expected to be $0.03 to $0.08, also above our outlook range.

本季初步營業利潤率為 4.6% 至 8%，高於我們的預期範圍。年初至今，我們預計將實現比去年同期更高的營業利潤率，這主要受益於收入和毛利率的提高。本季的營運支出為 1.34 億美元，低於我們 1.39 億美元至 1.43 億美元的預期範圍，因為我們嚴格管理季度支出，同時繼續對子系統業務進行大量投資。由此產生的初步稀釋每股收益預計為 0.03 至 0.08 美元，也高於我們的預期範圍。

Moving on to the balance sheet and cash flow items. We ended the quarter with $127 million in cash and cash equivalents with no amount drawn on the ABL. From a cash flow perspective, the primary use of cash in the quarter was inventory as we prepare for client deliveries in Q4 and Q1 of '24, while reducing our overall purchase commitments. We believe Q3 marked a peak for our inventory in this cycle, and we plan to generate cash from operations in Q4.

接下來是資產負債表和現金流量項目。本季結束時，我們擁有 1.27 億美元的現金和現金等價物，沒有從 ABL 提取任何金額。從現金流的角度來看，本季現金的主要用途是庫存，因為我們為 24 年第四季和第一季的客戶交付做準備，同時減少了我們的整體採購承諾。我們認為第三季標誌著我們本週期庫存的峰值，我們計劃從第四季度的營運中產生現金。

Let me now turn to the outlook for the fourth quarter of 2023. Despite the near-term challenging macro and industry environment, we are planning for sequential revenue growth in Q4, in line with consensus expectations. Our preliminary outlook range for the fourth quarter is revenue of $421 million to $451 million, gross margin of 38% to 41%, operating expenses of $138 million to $142 million and operating margin of 5.5% to 9.5%.

現在讓我談談 2023 年第四季的展望。儘管近期宏觀和產業環境充滿挑戰，但我們計劃第四季營收連續成長，符合共識預期。我們對第四季的初步展望範圍是營收4.21億美元至4.51億美元，毛利率38%至41%，營運費用1.38億美元至1.42億美元，營運利潤率5.5%至9.5%。

Below the operating income line, we assume approximately $7 million for net interest expense and approximately $3 million for taxes. Finally, we are anticipating EPS of $0.05 to $0.13 per share, assuming a basic share count of approximately 230 million shares and a fully diluted share count, if profitable, of approximately 260 million shares.

在營業收入線以下，我們假設淨利息支出約為 700 萬美元，稅金約為 300 萬美元。最後，我們預期每股盈餘為 0.05 至 0.13 美元，假設基本股數約為 2.3 億股，完全稀釋後的股數（如果獲利）約為 2.6 億股。

Furthermore, at approximately the midpoint of our outlook range for Q4, the implied expectations for the full year are generally consistent to slightly better than our commentary on last quarter's earnings call. Specifically, for the full year and compared to 2022, we expect to deliver revenue growth, expand gross margin, operating margin and EBITDA and expand non-GAAP EPS by at least 25%.

此外，大約在我們第四季度展望範圍的中點，對全年的隱含預期總體上與我們對上季度財報電話會議的評論一致或略好。具體來說，與 2022 年相比，我們預計全年將實現營收成長，毛利率、營業利潤率和 EBITDA 擴大，並將非 GAAP 每股盈餘擴大至少 25%。

As I close today, I would like to reiterate that I am pleased with our performance year-to-date, especially considering the industry-wide slowdown that we have been experiencing for the past few quarters. Our strategic initiatives are on track, and we should be on pace to deliver our sixth consecutive year of revenue growth and expand gross margin towards 40% for the year and drive a greater than 1,000 basis points of operating margin expansion since 2019.

在今天結束時，我想重申，我對我們今年迄今為止的表現感到滿意，特別是考慮到過去幾季我們經歷的全行業放緩。我們的策略性舉措正在步入正軌，我們應該能夠實現連續第六年的收入成長，並將今年的毛利率擴大到 40%，並自 2019 年以來推動營業利潤率擴大超過 1,000 個基點。

Furthermore, we have proactively strengthened our balance sheet by refinancing the majority of our 2024 notes ahead of the continued increase in interest rates. We currently have approximately $19 million of the 2024 convertible notes due upon [maturity] in September of 2024. We remain laser-focused on continuing to drive meaningful EPS expansion and generating free cash flow in the quarters and years ahead.

此外，我們在利率持續上漲之前，透過對大部分 2024 年票據進行再融資，主動強化了我們的資產負債表。目前，我們約有1,900 萬美元的2024 年可轉換票據將於2024 年9 月[到期]到期。我們仍然專注於繼續推動有意義的每股盈餘擴張，並在未來幾季和幾年內產生自由現金流。

I would like to thank the Infinera team as well for their continued commitment to innovation and execution and our partners, customers and shareholders for your continued cooperation and support.

我還要感謝英飛朗團隊對創新和執行的持續承諾，以及我們的合作夥伴、客戶和股東的持續合作和支持。

I'd now like to open up the line for questions.

我現在想開通提問熱線。

(Operator Instructions) Our first question is from Ruben Roy with Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Ruben Roy。

Nancy, [Just] reading the press release and the comments from the auditors, is there a change in your pricing methodology that's acquired here? And also with your comments regarding Q4 and the guidance, would the guidance have been different without the kind of change in accounting?

南希，[剛剛]閱讀了新聞稿和審計師的評論，您在這裡獲得的定價方法有變化嗎？另外，根據您對第四季度和指導意見的評論，如果沒有會計方面的變化，指導意見會有所不同嗎？

First, there's no change in our pricing approach. Our pricing approach has been consistent as for many years now in terms of how we sell our product, sell our technology and work with our customer base. As far as Q4, I mean, the range is -- where we see the range today, it does include the new methodology that we mentioned. But if you look at our preliminary range for Q3, you can see the magnitude of impact from that adjustment is, I would say, limited. So we feel good about the Q4 outlook range today.

首先，我們的定價方法沒有改變。在如何銷售我們的產品、銷售我們的技術以及與我們的客戶群合作方面，我們的定價方法多年來一直保持一致。就第四季度而言，我的意思是，這個範圍是——我們今天看到的範圍，它確實包括我們提到的新方法。但如果你看看我們第三季的初步範圍，你會發現調整的影響程度是有限的。因此，我們今天對第四季度的前景範圍感到滿意。

And as a follow-up, David. Great to hear about the Subsystems progress. As that progress comes, there's, of course, sort of (inaudible) and this concept of [metro] (inaudible) kind of the [lesion] from possible (inaudible) et cetera. Just wondering if you have an updated thought on how you see that? Clearly, there are reach limitations and the potential that it's not a simple one-to-one replacement, but would just love to hear updated thoughts as you get closer to shipment?

作為後續行動，大衛。很高興聽到子系統的進展。隨著進展的到來，當然，存在某種（聽不清楚）和[地鐵]（聽不清楚）的概念，可能是（聽不清楚）等等的[病變]。只是想知道您對此有何看法？顯然，存在範圍限制，並且它可能不是簡單的一對一替換，但只是想在接近發貨時聽到最新的想法？

Sure. Not every service provider -- and it certainly doesn't follow the same strategy and you need to do web scalers. So our strategy has always been to build the world's best transponders whether they're in an embedded solution to service long-haul subsea or metro high-capacity inside an optical system or whether that's transponders miniaturized inside a pluggable that is able to provide metro reach, and quite frankly, over time, some of the same functionality as in an embedded. So we're on both sides of the equation. They all come back to our core competence of building vertically integrated transponders with our own optical semiconductors.

當然。並非每個服務提供者都遵循相同的策略，並且您需要進行網路擴充。因此，我們的策略始終是打造世界上最好的轉發器，無論它們是在光學系統內為長途海底或城域高容量提供服務的嵌入式解決方案，還是在能夠提供城域覆蓋範圍的可插拔內部小型化的轉發器，坦白說，隨著時間的推移，一些與嵌入式中相同的功能。所以我們處於等式的兩邊。它們都回到了我們用我們自己的光學半導體建立垂直整合轉發器的核心能力。

The next question is from Alexander Henderson with Needham.

下一個問題是亞歷山大·亨德森和李約瑟提出的。

So just to be clear, there is no impact on the margin structure at all. No changes in the gross margin as a result of the accounting change. I'm looking at the guide for the gross margins for the third quarter to fourth quarter, it looks we like there's not much real improvement in that margin sequentially. And I would think that would be the case given the ramp of chip production.

因此需要明確的是，這對利潤結構根本沒有影響。會計變更不會導致毛利率改變。我正在查看第三季至第四季的毛利率指南，看起來我們認為該利潤率連續沒有太大的實際改善。考慮到晶片產量的增加，我認為情況就是如此。

Yes. So a couple of things. If there is an adjustment to revenue, it would be at 100% margin, right? So it would flow straight through to the bottom line. But you're right, there's no change to our overall margin structure. Our target business model remains unchanged, and we're really pleased with the progress we've made in Q3, getting to a [4%] and the handle of gross margin is something we have been driving to for quite some time. So we're very happy to see that. In terms of Q4, yes, there's a certain mix of customers and products. But you're right, there's also the ramp of the new technology. So it's a combination there.

是的。有幾件事。如果收入有調整的話，利潤率應該是100%，對嗎？所以它會直接流向底線。但你是對的，我們的整體利潤結構沒有改變。我們的目標業務模式保持不變，我們對第三季的進展感到非常滿意，達到了 [4%]，毛利率的控制是我們長期以來一直在努力的目標。所以我們很高興看到這一點。就第四季度而言，是的，存在一定的客戶和產品組合。但你是對的，新技術也在不斷發展。所以這是一個組合。

Can you give us any thoughts on whether you're going to be stepping up hiring or reducing hiring as we go into 2024? I realize you haven't done your budget yet, but any commentary along -- granularity around that would be very useful.

您能否告訴我們，在進入 2024 年時，您是要增加招募還是減少招募？我知道您還沒有製定預算，但是任何有關預算的評論都會非常有用。

Yes. I think from an expense and investment perspective, Alex, you've seen over the last couple of quarters, we've really been holding tightly in expense through this kind of climate. It's a little early to be talking about '24. But certainly, we think '24 will have a bit of a lighter front half, heavier back half. We still believe we will grow and the market will grow, and we will grow faster than the market. I don't think we're going to go crazy in terms of adding lots of resources. We're going to continue to try to drive efficiency to really ensure we're getting operating leverage.

是的。我認為，從支出和投資的角度來看，亞歷克斯，你在過去幾季中看到，在這種環境下，我們確實一直在嚴格控制支出。現在談論「24」還為時過早。但當然，我們認為 24 年的前半部分會更輕，後半部分會更重。我們仍然相信我們會成長，市場也會成長，而且我們會比市場成長得更快。我不認為我們會瘋狂地添加大量資源。我們將繼續努力提高效率，以真正確保我們獲得營運槓桿。

So we'll give you a bit more profound detail around 2024 in terms of both what our top line expectations and the expectations for margin and bottom line. Good news on the margin front is we're really seeing the impact that these things can happen as the pluggables continue to ramp up. They will continue to help that margin profile. In the early days, as you just suggested, you're at pre-entitlement periods and for the first quarter or 2, those are not getting at the same volume potential that they will as yet.

因此，我們將在 2024 年左右為您提供更深入的細節，包括我們的營收預期以及利潤率和淨利潤的預期。邊際方面的好消息是，隨著可插拔設備的不斷增加，我們確實看到了這些事情可能發生的影響。他們將繼續改善利潤狀況。正如您剛才所建議的，在早期，您處於預授權期，並且在第一季或第二季度，這些季度的銷售潛力尚未達到預期。

The next question is from Simon Leopold with Raymond James.

下一個問題是西蒙·利奧波德和雷蒙德·詹姆斯提出的。

It looks to me like your ICP business year-to-date is up something on the order of 30% plus and so I get sort of lumpiness quarter-to-quarter. I'm trying to get a better sense of how to think about that particular vertical over the next several quarters next year, however you want to frame it, given I see sort of 2 opposing forces? One is the tough comparison, but 2 is what sounds like stable trends in terms of that group of operators and their spending. Can you help me with that?

在我看來，今年以來你們的 ICP 業務成長了 30% 以上，所以我每季的業績都有些不穩定。我正試圖更好地了解如何在明年接下來的幾個季度中思考這個特定的垂直領域，無論你想如何建構它，因為我看到了兩個相反的力量？一是艱難的比較，二是就該運營商群體及其支出而言，聽起來似乎是穩定的趨勢。你能幫我嗎？

Yes. I think I can. But again, I'm not going to lay out complete '24. Look, I think that for the first time in our history, we are engaged with all the major hyperscalers in some way, shape or form. It's up on multiple technology fronts, some unpluggable as well as embedded technologies and software and line systems. So I would expect that when I look at their CapEx, not just from what they're publicly announcing but what we're planning with them for that segment to continue to be robust. Although again, lumpy in how they roll out the quarters, but for full year to be robust in '24 and '25.

是的。我覺得我可以。但再次強調，我不會列出完整的 24 年。聽著，我認為這是我們歷史上第一次以某種方式、方式或形式與所有主要的超大規模企業接觸。它涉及多個技術前沿，包括一些不可插拔技術、嵌入式技術以及軟體和線路系統。因此，我希望當我查看他們的資本支出時，不僅要考慮他們公開宣布的內容，還要考慮我們與他們一起計劃的內容，以使該細分市場繼續保持強勁。儘管他們在季度推出方面再次出現波動，但 24 年和 25 年全年將表現強勁。

And I just want to get a little bit maybe clarification on the accounting weakness that was identified. I just want to get an understanding of what might have changed? Was there something that changed in the accounting team, something that changed that triggered the review? It's sort of the why now?

我只是想對已發現的會計缺陷進行一些澄清。我只是想了解可能發生了什麼變化？會計團隊中是否發生了某些變化，導致了審核？這就是為什麼現在？

So yes, I mean, first of all, no, nothing has changed in terms of the team, and we've been, as you've seen, continuing to improve our processes over time. This was an inspection of our auditor by the PCAOB that was randomly impacting Infinera. Meaning they had an inspection, Infinera's kind of name was drawn, so to speak. The methodology that we use, they had questions about -- in terms of our approach to how we allocate between hardware, software and services. We reviewed some of their questions, some of their suggestions, and we agreed that we needed to make a change to that methodology. But that simply changes quarters in which revenue is recognized. It does not change in total the revenue amount that we will recognize over the life of a contract.

所以，是的，我的意思是，首先，不，團隊方面沒有任何變化，正如您所看到的，我們一直在隨著時間的推移繼續改進我們的流程。這是 PCAOB 對我們審計員的一次檢查，隨機影響了 Infinera。可以這麼說，這意味著他們進行了檢查，英飛朗的名字已經被抽出來了。他們對我們使用的方法有疑問——就我們如何在硬體、軟體和服務之間分配的方法而言。我們審查了他們的一些問題和一些建議，並一致認為我們需要改變這種方法。但這只是改變了確認收入的季度。它不會改變我們在合約有效期間內確認的收入總額。

And as you can see from the range we showed in Q3, it's limited in scope. I mean, in terms of the absolute magnitude you can think of it as 0.25 percentage up to maybe a few percent in any particular period. But we don't expect it to be something that slows us down. We're continuing to execute and operate. We are working through the remaining work that we have to get done with our auditors. And we will drive to file our 10-Q as quickly as possible.

正如您從我們在第三季度展示的範圍中看到的，它的範圍有限。我的意思是，就絕對大小而言，您可以將其視為任何特定時期的 0.25% 到幾個百分點。但我們並不認為它會減慢我們的速度。我們將繼續執行和運作。我們正在與審計師一起完成必須完成的剩餘工作。我們將盡快提交 10-Q。

Yes. That's why we are comfortable with the ranges we put out and putting out our Q4 guidance. But obviously, given this is brought late in the process, Nancy's team has to work through this with the auditors to file the 10-Q. So that's where we're at.

是的。這就是為什麼我們對我們提出的範圍和第四季度的指導感到滿意。但顯然，鑑於此過程已延遲，Nancy 的團隊必須與審計員一起解決此問題，以提交 10-Q。這就是我們現在的情況。

The next question is from Mike Genovese with Rosenblatt Securities.

下一個問題來自羅森布拉特證券公司的 Mike Genovese。

I mean, really nice results and nice outlook and particularly with the book-to-bill being above 1 in the third quarter. I guess my question is, I mean, particularly, as you mentioned, with competitors or others in the industry seeing weaker trends and you guys coming through here, I'm just wondering -- and the one time [person] -- customer being a web scaler. Are the orders more than normal weighted towards web scale? Or are you also seeing the sort of strength and share gain with traditional telco customers as well?

我的意思是，非常好的結果和良好的前景，特別是第三季的訂單出貨比高於 1。我想我的問題是，我的意思是，特別是，正如您所提到的，競爭對手或行業中的其他人看到了疲軟的趨勢，而您來到這裡，我只是想知道- 以及一次性[人] - 客戶是網路縮放器。訂單的網路規模權重是否高於正常水準？或者您也看到了傳統電信客戶的優勢和分享收益？

Yes. Thanks for asking the question. So yes, well, certainly, we're doing very well that -- we've covered with the web scalers. I will tell you, we won a couple of new Tier 1 levels in Europe that we have never had before. And so those are nice wins for us. As well as in the metro, you see we continue to make big progress in gaining share. When I look at our G40, G30 platform, our GX platform, and I look at the year-over-year comparables to what we're doing there in terms of product bookings as well as product billings, they are [up] profoundly.

是的。感謝您提出問題。所以，是的，當然，我們做得很好——我們已經覆蓋了網路縮放器。我會告訴你，我們在歐洲贏得了一些我們以前從未有過的新一級等級。所以這些對我們來說都是很好的勝利。與地鐵一樣，您會看到我們在贏得市場份額方面繼續取得重大進展。當我查看我們的 G40、G30 平台、GX 平台以及與我們在產品預訂和產品帳單方面所做的逐年比較時，它們都大幅上升。

So we are making inroads with service providers in different geos. We talked about India in our last call, in Europe, as well as you saw nice strength in both Europe and Americas this last quarter. So again, the strategy we laid out at our Analyst Day, that 8X4X1 is winning in the core, winning in the metro and then driving to the edges what we got our heads down, and we're executing to.

因此，我們正在與不同地區的服務提供者合作。我們在上次歐洲電話會議中談到了印度，您也看到了上個季度歐洲和美洲的強勁勢頭。再說一遍，我們在分析師日制定的策略是，8X4X1 是在核心領域獲勝，在地鐵領域獲勝，然後將我們埋頭苦幹並執行的目標推向邊緣。

And then on this restatement project. I mean it sounds like you're saying the Q will be filed relatively on time, which to me suggests this month. Is that reasonable?

然後是這個重述項目。我的意思是，聽起來你是說問題將相對按時提交，對我來說，這表明本月。這樣合理嗎？

Yes. First, this is not -- we are not indicating a restatement. So we are still doing our work. We are highlighting the range -- preliminary range for Q3 and Q4. We do have work still to complete, which is why we filed the extension on our Q. Our objective is to get it done as soon as practical. So you can probably think of that in weeks versus anything longer than that.

是的。首先，這不是──我們不表示重述。所以我們仍在做我們的工作。我們強調的是第三季和第四季的初步範圍。我們確實還有工作需要完成，這就是我們在問題上提交延期的原因。我們的目標是盡快完成。所以你可能會在幾週內想到這一點，而不是比這更長的時間。

And then finally, I'm really happy to hear about the refinancing of the convertibles, there's only $19 million due in September of '24. I think that's great news. But since we don't have the Q, I'm just curious, is everything now beyond that are the maturities in '27 and '28 and beyond? Or do we have things coming due in '25 and '26?

最後，我真的很高興聽到可轉換債券的再融資，24 年 9 月到期的金額只有 1,900 萬美元。我認為這是個好消息。但由於我們沒有問題，我只是很好奇，現在的一切是否都超出了 27 年和 28 年及以後的期限？或者我們有 25 年和 26 年到期的事情嗎？

No. So there's $19 million due in September '24, and we did file at the time of that refinancing. You can see the details there and Amitabh can send them to you if you need. And then the next set of maturities, you're right, are in '27 and '28.

不會。因此，24 年 9 月到期的 1900 萬美元是我們在再融資時提交的。您可以在那裡查看詳細信息，如果您需要，Amitabh 可以將其發送給您。然後下一組到期日，你是對的，是在 27 和 28 年。

What was the effect of interest rate [for] [this]?

利率[對此]有何影響？

Our average right now is 3.3%.

我們現在的平均是 3.3%。

The next question is from Dave Kang with B. Riley.

下一個問題是 Dave Kang 和 B. Riley 提出的。

Regarding on bookings, I think last quarter you said that you expect bookings to increase throughout the second half. So should we expect bookings to be up once again in fourth quarter sequentially?

關於預訂量，我認為上個季度您曾表示預計下半年預訂量將會增加。那麼，我們是否應該預期第四季的預訂量將再次上升？

That's the only area we don't actually report. We don't forecast bookings. But I think what we said is that we thought that bookings would continue to accelerate in the back half. There is some lumpiness in bookings. But overall, we see a trend, both in Q3 and Q4 versus the first half that is at this point.

這是我們實際上沒有報告的唯一領域。我們不預測預訂情況。但我認為我們所說的是我們認為下半年預訂量將繼續加速。預訂方面存在一些混亂。但總的來說，我們看到了第三季和第四季與上半年相比的趨勢。

And then also last quarter, you said Tier 1s were still in inventory correction mode while smaller service providers, they seem to be doing better. Have they changed since 90 days ago?

同樣在上個季度，您說一級供應商仍處於庫存調整模式，而規模較小的服務提供者似乎做得更好。自 90 天前以來，它們有變化嗎？

Yes. I think you've heard in the industry, everybody is very tight with the capital dollar, with interest rates and the economy and externalities, geopolitical forces at play. But that's what you heard in my prepared remarks said, our goal is to win more than our fair share and to ensure that the priority of the orders which the service providers is rolling out, fiber deeper into the edge of the network to get these applications built. And the web scalers that we're dealing with are building out AI infrastructure, and that is fueling demand. So we're focused on every order dollar that's up and available and our job is to take more than our fair share.

是的。我想你在這個行業聽說過，每個人都對資本美元非常緊張，利率、經濟、外部因素、地緣政治力量都在發揮作用。但這就是您在我準備好的演講中聽到的內容，我們的目標是贏得超出我們公平份額的份額，並確保服務提供商推出的訂單的優先級，將光纖深入到網絡邊緣以獲得這些應用程序建造的。我們正在處理的網路縮放器正在建立人工智慧基礎設施，這正在刺激需求。因此，我們專注於每一筆可用的訂單，我們的工作就是獲得超出我們應有份額的份額。

The next question is from Meta Marshall with Morgan Stanley.

下一個問題來自摩根士丹利的梅塔·馬歇爾。

Hi, this is Karan on for Meta. So you sort of mentioned inventory being a source of cash next quarter. I guess just generally, what gives you confidence in that and maybe just how much of a source of cash can it be for next quarter and maybe across the year next year?

大家好，我是 Meta 的 Karan。所以你提到庫存是下個季度的現金來源。我想一般來說，是什麼讓您對此充滿信心？也許下個季度甚至明年全年可以有多少現金來源？

Yes, we have been using working capital over the last several quarters through the period of time of the inventory [adjustment]. We think inventory has peaked in Q3. I will say, though, we've been sharing with you that our total commitments -- if you look at both the inventory on our books as well as the commitments to our RCM is actually down Q2 to Q3. And then we expect to reduce inventory and the inventory commitments total again in Q4. So that cash flow will start in Q4 and flow into Q1. I can't give you a real magnitude at this point, but more to just say that the trend is now turning in the right direction there.

是的，在過去幾季的庫存[調整]期間，我們一直在使用營運資金。我們認為庫存已在第三季達到頂峰。不過，我要說的是，我們一直在與大家分享，如果您查看我們賬簿上的庫存以及對 RCM 的承諾，我們的總承諾實際上從第二季度到第三季度有所下降。然後我們預計第四季度將再次減少庫存和庫存承諾總額。因此現金流將從第四季開始並流入第一季。目前我無法告訴您真正的大小，但更多的是說趨勢現在正在朝著正確的方向轉變。

Yes. So I think in the quarter, our inventories were up close to $40 million-ish in Q3, and our overall obligations -- purchase obligations plus inventory were down [$20 million]. So despite the inventory being up, total net liability down $20 million , and we expect that to peak. And then again, given the nice book-to-bill and what our outlook is for Q4 and projects from backlog for Q1, we expect that to go down.

是的。因此，我認為在第三季度，我們的庫存接近 4000 萬美元左右，而我們的總體義務（採購義務加上庫存）下降了 [2000 萬美元]。因此，儘管庫存增加，淨負債總額仍下降了 2000 萬美元，我們預計這一數字將達到高峰。話又說回來，考慮到良好的訂單出貨量以及我們對第四季度的展望以及第一季積壓的項目，我們預計這一數字將會下降。

And then just a quick follow-up on the service provider side. You mentioned [service] teams continued strength there. I guess just generally in terms of customer conversations, are you getting any pushback on the pricing front during some of this pause?

然後服務提供者方面進行快速跟進。您提到[服務]團隊在那裡繼續保持實力。我想一般來說，就客戶對話而言，在這段暫停期間，您在定價方面是否遇到了任何阻力？

We always get pushback on the pricing front. But our job is to make vertically integrated products that provide price performance, not just by reducing the price tag, but actually the effect of dollar per bit and [watts] per bit. So -- and I do want to correct, when I say service provider strength, do not write that up. There are pockets of strength based on priority of spend. Overall, there is still a muted environment of conservatism around CapEx dollars. And I expect that our team is in planning mode and out with our customer base now, and we're in the process of locking down our plans for 2024 accordingly.

我們總是在定價方面遇到阻力。但我們的工作是製造具有性價比的垂直整合產品，不僅僅是降低價格標籤，而且實際上是每比特美元和每比特[瓦特]的效果。所以——我確實想糾正一下，當我說服務提供者的實力時，不要把它寫下來。根據支出的優先順序，有一些實力。總體而言，圍繞資本支出美元的保守主義環境仍然溫和。我預計我們的團隊現在已進入規劃模式並與我們的客戶群脫離，我們正在相應地鎖定 2024 年的計劃。

The next question is from George Notter with Jefferies.

下一個問題來自傑弗里斯的喬治·諾特。

I am curious about the mix of ICE-X as a percentage of product sales and then also the mix of vertically integrated sales as a percentage of product sales. Do you guys have those numbers?

我很好奇 ICE-X 的組合佔產​​品銷售額的百分比，以及垂直整合銷售額佔產品銷售額的百分比。你們有這些數字嗎？

We do. ICE-X was just under 30%. The vertical integration was at 57-ish percent.

我們的確是。 ICE-X 略低於 30%。垂直整合率為 57% 左右。

And then as I think about driving those numbers forward, obviously, the XTM and GX redesigns are kind of the key elements there. Can you tell me where you guys are on that? I think you said one of those products is going to be available by year-end for revenue. Obviously, your customers also have to test those products. How long do you think those testing processes will take? What do you think it looks like in terms of really turning those numbers upward in terms of vertical integration of products?

然後，當我考慮推動這些數字向前發展時，顯然，XTM 和 GX 的重新設計是其中的關鍵要素。可以告訴我你們在這方面的進展如何嗎？我想你說過其中一種產品將在年底前推出並產生收入。顯然，您的客戶也必須測試這些產品。您認為這些測試過程需要多長時間？您認為在產品垂直整合方面真正提高這些數字會是什麼樣子？

Yes, the bookings of the GX series are up significantly, and we should probably put that out in our next earnings cycle to show the percentages of that and what's the embedded base of GX is growing on [account]. So we'll do that, George. But those products are ready, the software, the OS, everything we've done over the last years to make them productive from metro, long-haul and aggregation. So that's great.

是的，GX 系列的預訂量顯著增加，我們可能應該將其放在下一個盈利週期中，以顯示其百分比以及 GX 的嵌入式基礎在[帳戶]上的增長情況。所以我們就這麼做，喬治。但這些產品已經準備好了，軟體、作業系統，以及我們過去幾年所做的一切，使它們在城域、長途和聚合方面具有生產力。那太好了。

What we talked about, George, was we were shipping the first one to a customer that not only had the GX, but have the -- our own pluggables in them. And so that will actually go out. That's going out right now this quarter and thus will be the revenue in this quarter or in Q1, thus the start of the vertical integration.

喬治，我們談論的是我們正在將第一個產品運送給不僅擁有 GX，而且還擁有我們自己的可插拔設備的客戶。所以這實際上會消失。該數據將於本季公佈，因此將是本季或第一季的收入，從而開始垂直整合。

So now all of our GX platforms that are out there, where we might have used merchant CFP2, our pluggable in it, are able to incorporate our pluggable and we're going through various stages of integration testing with those clients. Obviously, if we can provide a better price performance they're eager to have us implement. So we'll try to make sure, George, going forward in 2024. I think that's a good metric for us to start looking at.

因此，現在我們所有的 GX 平台（我們可能使用了商業 CFP2、我們的可插拔設備）都能夠整合我們的可插拔設備，並且我們正在與這些客戶進行不同階段的整合測試。顯然，如果我們能夠提供更好的性價比，他們就會渴望我們實施。因此，喬治，我們將盡力確保在 2024 年繼續前進。我認為這是我們開始考慮的一個很好的指標。

And then...

進而...

(inaudible) vertical integration and -- yes.

（聽不清楚）垂直整合以及－－是的。

Sorry, go ahead.

抱歉，請繼續。

No. Go ahead, you're good.

不，繼續吧，你很好。

So I was just going to ask that the mix of vertically integrated product -- Obviously, we're looking for that to step up as the year goes on next year. Like what do you think is doable in terms of that next year?

所以我只想問垂直整合產品的組合 - 顯然，我們希望隨著明年的進展而加強這個組合。您認為明年可以做些什麼？

Again, I don't want to get too far ahead of the state into 2024. But I think what we said was that we thought over [60] and over time that, that could approach [70], so.

再說一遍，我不想在 2024 年之前走得太遠。但我認為我們所說的是我們考慮了 [60]，隨著時間的推移，可能會接近 [70]，所以。

The next question is from Christian Schwab with Craig-Hallum Capital.

下一個問題來自 Craig-Hallum Capital 的 Christian Schwab。

Just 2 quick ones. We don't want to talk about '24, but I missed some of the prepared comments. Did we reiterate our outlook for $1 share earnings in '25 and '26?

就2個快的。我們不想談論'24，但我錯過了一些準備好的評論。我們是否重申了 25 年和 26 年每股收益 1 美元的預期？

Yes, we did not, but we have not pulled off that. And I think when you see the -- I think what we said in our last earnings call is that we continue to expand EPS this year in 2023 by 25%, and a big goal of ours next year isn't just the growth in the top line, but we're super focused on growing our bottom line dollars and that EPS percentage. So [with] that we are not (inaudible) off that at all.

是的，我們沒有，但我們還沒有實現這一目標。我認為，當你看到——我認為我們在上次財報電話會議中所說的是，我們今年將在 2023 年繼續將每股收益擴大 25%，而我們明年的一個大目標不僅僅是增長頂線，但我們非常專注於增加我們的底線美元和每股收益百分比。因此，我們根本就沒有（聽不清楚）。

And then as far as -- last quarter you guys talked about a lot of different growth opportunities in India. Can you give us an update on how those growth opportunities are going and what your future expectations are geographically for India?

就上個季度而言，你們談到了印度許多不同的成長機會。您能否向我們介紹這些成長機會的最新情況以及您對印度未來的期望？

Sure. I'll start with overall just growth expectations. So we talked in the prepared remarks about landing a couple of Tier 1s in Europe. We continue to extend with the hyperscalers. And overall, we had a book-to-bill above 1, which was nice to see again after Q1 and Q2 being below 1. So I think overall, we feel very good. It's probably the best we felt across our customer segment, about our engagement.

當然。我將從整體成長預期開始。因此，我們在準備好的評論中討論了在歐洲落地一些一級企業的問題。我們繼續與超大規模企業合作。總體而言，我們的訂單出貨比高於 1，很高興在第一季和第二季低於 1 後再次看到這一點。所以我認為總體而言，我們感覺非常好。對於我們的參與度，這可能是我們在整個客戶群中感受到的最好的。

Now that being said, we're in a tough economic climate for them. So what's important to do in these times is engage, understand their needs and put things forward to help them drive the priority of their CapEx spend at the lowest dollar per bit, lowest watt per bit and the best ease of use because they're going to be -- as you've seen, they try to limit their operational personnel that -- a lot of them have become thinner in the field. And we can help that. That's where we want to be.

話雖這麼說，但對他們來說，我們正處於艱難的經濟環境中。因此，在這些時候，重要的是參與、了解他們的需求並提出建議，幫助他們以最低的每比特美元、最低的每比特瓦特和最好的易用性推動資本支出支出的優先級，因為他們正在正如你所看到的，他們試圖限制他們的操作人員，其中許多人在現場變得越來越薄弱。我們可以提供協助。這就是我們想要達到的目標。

The next question is from Alex Henderson with Needham.

下一個問題是 Alex Henderson 和 Needham 提出的。

A lot of companies that went through the supply chain issues saw a fairly large increase in backlog, which then allowed them to produce very strong shipments as a result of the supply chain, allowing them to ship more product out against that backlog. A number of them have talked about significant comparison challenges because of it. As one example, if you look at F5, they had a 45% growth in the second quarter and ADC is a business that's flat to declining. So they obviously have a tough comp. Can you talk whether you have a comparison issue in any of the upcoming next 4 or 5 quarters as a result of that and whether that is playing a role to the improved shipments? And on your book-to-bill, it's nice to hear above 1 in the third quarter. Were you above 1 for the year?

許多經歷過供應鏈問題的公司都發現積壓訂單大幅增加，這使得他們能夠透過供應鏈生產出非常強勁的出貨量，從而能夠根據積壓訂單運送更多產品。他們中的一些人談到了因此而面臨的重大比較挑戰。舉個例子，如果你看看 F5，他們在第二季度成長了 45%，而 ADC 是一項持平甚至下降的業務。所以他們顯然有一個艱難的比賽。您能否談談在接下來的 4 或 5 個季度中是否會因此而出現比較問題，以及這是否對出貨量的改善產生了影響？在你的訂單到帳單上，很高興聽到第三季超過 1。這一年的成績是否高於 1？

No, we have not done above 1 for the year. But back to your -- I think your key premise -- I think if you look at our operating results over the last 3 years, you don't see wild swings in terms of us growing 25% 1 year as flat another. You see kind of high single-digit to double-digit growth in top line. And this year has been a bit more muted given the economic climate. But so far for the first 3 quarters, we were looking good. We didn't have that big spike. So as the share taker in our position, as long as the market continues to grow, we will grow, our program just to grow ahead of that market and to continue to really expand EPS background.

不，我們今年還沒有完成以上 1 項工作。但回到你的——我認為你的關鍵前提——我認為，如果你看看我們過去三年的經營業績，你不會發現我們一年增長 25% 的大幅波動與另一年持平。您會看到收入出現高個位數到兩位數的成長。考慮到經濟環境，今年的情況更加平靜。但到目前為止，前三個季度我們看起來不錯。我們沒有那麼大的峰值。因此，作為我們位置上的股東，只要市場繼續成長，我們就會成長，我們的計畫只是為了領先市場成長並繼續真正擴大每股盈餘背景。

So simple answer, Alex, no, we don't have as tough as the compare, I think, given we've kind of been steady (inaudible).

答案很簡單，亞歷克斯，不，我認為，考慮到我們一直保持穩定（聽不清楚），我們沒有那麼艱難。

There are no further questions at this time. I'll turn it back to the presenters for any closing remarks.

目前沒有其他問題。我會將其轉回給主持人以供結束語。

Yes. No, I appreciate the thoughtful questions. And again, in this environment, overall, we delivered another strong quarter with projected sequential revenue growth, strong bookings and higher margins, hitting that 40%. We've got the right strategy and are executing our plan. Our portfolio is in the best shape it's ever been, and we're winning customers globally across the segments. We do appreciate the support of our customers, employees and shareholders. And now we're going to get back to work, continuing to execute a very sound investment strategy and focus on continued EPS expansion.

是的。不，我很欣賞這些深思熟慮的問題。在這種環境下，總體而言，我們再次實現了另一個強勁的季度，預計收入將連續增長，預訂量強勁，利潤率更高，達到 40%。我們已經制定了正確的策略並正在執行我們的計劃。我們的產品組合處於有史以來的最佳狀態，並且我們正在各個領域贏得全球客戶。我們非常感謝客戶、員工和股東的支持。現在我們要重新開始工作，繼續執行非常健全的投資策略，並專注於每股盈餘的持續擴張。

Thanks again for the call. Be safe and take care.

再次感謝您的來電。注意安全並小心。

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

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。