Infinera Corp (INFN) 2023 Q4 法說會逐字稿

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Infinera Corporation fourth quarter earnings conference call. (Operator Instructions) I would now like to turn the conference over to Amitabh Passi, Head of Investor Relations. You may begin your conference.

午安.我叫克里斯塔，今天我將擔任您的會議主持人。現在，我歡迎大家參加英飛朗公司第四季財報電話會議。（操作員指示）現在，我想將會議交給投資人關係主管 Amitabh Passi。您可以開始您的會議了。

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

謝謝你，克里斯蒂安，大家下午好。歡迎參加 Infinera 2023 財年第四季電話會議。Infinera 今天發布的新聞稿副本可在網站的「投資者關係」部分查閱，本次電話會議正在錄音，可從我們的網站重播。

Today's call will include projections and estimates that constitute forward-looking statements, including but not limited to, statements related to the matters referenced in the press release and current report on Form 8-K that the company issued today and our financial outlook for the first quarter of 2024.

今天的電話會議將包括構成前瞻性陳述的預測和估計，包括但不限於與公司今天發布的新聞稿和 8-K 表格當前報告中提及的事項相關的陳述以及我們對 2024 年第一季的財務展望。

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 amended on February 29, 2024 and in our quarterly report on Form 10-Q for the quarter ended September 30, 2023, as filed with the SEC on February 29, 2024 as well as subsequent reports filed with or furnished to the SEC from time to time.

這些聲明受風險和不確定性的影響，可能導致 Infinera 的表現與管理層目前的預期有重大差異。由於各種風險因素，實際結果可能存在重大差異，包括我們於 2023 年 2 月 27 日向美國證券交易委員會提交並於 2024 年 2 月 29 日修訂的截至 2022 年 12 月 31 日的 10-K 表年度報告中所述的風險因素、於 2024 年 31 日的 10-K 表年度報告中所述的風險因素、於 2024 年 23 月的截至 203 月 202923 月 2029203 月 20293 月的 2029203 月 202923 月 20293 月的 29293 月 202923 月 202923 月的 293 月證券交易委員會提交給美國證券交易委員會的 293 日10-Q 表季度報告中所述的風險因素以及不時向美國證券交易委員會提交或提供的後續報告。

Please be reminded that all statements are made as of today. 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. Today's conference call includes references to non-GAAP financial measures except for revenue, balance sheet items and cash flow from operations, which are each discussed on a GAAP basis pursuant to Reg G.

請注意，所有聲明均截至今日為止。Infinera 不承擔更新或修改任何前瞻性陳述以反映本次電話會議召開日期後可能出現的事件或情況的義務。今天的電話會議提到了非公認會計準則 (non-GAAP) 財務指標，但收入、資產負債表項目和經營活動現金流除外，這些指標均根據 Reg G 以公認會計準則 (GAAP) 為基礎進行討論。

We've provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings release and investor slides sorry, the R&O investor slides this quarter, each of which is available on the Investor Relations section of our website. And finally, as a reminder, will allow for plenty of time for Q&A today. So we ask that you limit yourself to one question and one follow-up, please. And I'll turn the call over to our Chief Executive Officer, David Heard.

我們已在本季的收益報告和投資者幻燈片（抱歉，是 R&O 投資者幻燈片）中提供了這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表，每個都可以在我們網站的投資者關係部分找到。最後，提醒一下，今天將留出充足的時間進行問答。因此，我們要求您只提出一個問題並進行一次後續跟進。我將把電話轉給我們的執行長戴維·赫德 (David Heard)。

Thanks, Tom. Good afternoon and thanks for joining us today. I'll begin with the highlights for our preliminary fourth quarter results and then turn the call over to Nancy to cover the preliminary financial details of our fourth quarter performance and outlook for the first quarter.

謝謝，湯姆。下午好，感謝您今天加入我們。我將首先介紹我們第四季度初步業績的亮點，然後將電話轉給南希，介紹我們第四季度業績的初步財務細節和第一季的展望。

Overall, the fourth quarter was a strong quarter for us in which the mid in which the midpoint of our preliminary revenue, gross margin and EPS ranges are all expected to come in above our outlook ranges. We delivered a book-to-bill of approximately one for the second quarter in a row, and we generated over $50 million in free cash flow.

總體而言，第四季度對我們來說是一個強勁的季度，其中我們的初步收入、毛利率和每股收益範圍的中點預計都高於我們的預期範圍。我們連續第二季實現了約 1 的訂單出貨比，並產生了超過 5,000 萬美元的自由現金流。

Furthermore, during the quarter, our GX systems portfolio performed strongly landing new Tier 1 design wins with global service providers and ICPs. It now represents almost 50% of our expected annual product revenue. And in subsystems, we shipped our first 400 gig ICE6 coherent pluggables vertically integrated into our own GX Metro platform.

此外，在本季度，我們的 GX 系統產品組合表現強勁，贏得了全球服務提供者和 ICP 的新的一級設計訂單。它現在占我們預期年度產品收入的近50%。在子系統方面，我們推出了首批 400 千兆 ICE6 相干可插拔產品，並將其垂直整合到我們自己的 GX Metro 平台中。

Combining the third and fourth quarters of 2023 marked a strong finish to the calendar year while capital markets and macro economic conditions were challenging throughout 2023, we kept our heads down and believe we've delivered on our commitments to you for the full year 2023, we expect to deliver our sixth consecutive year as revenue grow, expand gross margins to approximately 40%, expanded operating margins and increased operating profit in the double digit percentage range and delivered EPS in the 20% to 25% range, also consistent with what we mentioned to you in our Investor Day. And that EPS is up at least 70% year over year.

2023 年第三季和第四季合併標誌著日曆年的強勁收官，儘管 2023 年全年資本市場和宏觀經濟條件都充滿挑戰，但我們保持低調，相信我們已經兌現了對您的 2023 年全年承諾，我們預計連續第六年實現收入增長，毛利率擴大至約 40%，營業利潤率擴大百分比，20 至每股收益之間，這也與我們在投資者日向您提到的一致。且每股收益較去年同期成長至少 70%。

From a portfolio and customer perspective, we continued to build on the momentum of the last few years as we landed new customers during the year and successfully expanded into new market segments and geographies.

從產品組合和客戶的角度來看，我們繼續保持過去幾年的發展勢頭，在這一年中我們獲得了新客戶，並成功擴展到新的細分市場和地區。

Let me touch on a few of the 2023 highlights. First, we won new strategic deals with major service providers, including notable wins in the US, Europe, India and Australia and several multinational subsea consortiums. Our win rate in the metro remains strong, with revenue in this segment growing to almost 50% of product revenue in 2023, an important part of our investment thesis and forward opportunity with the Huawei situation.

讓我來談談 2023 年的一些亮點。首先，我們與主要服務提供者達成了新的戰略協議，包括在美國、歐洲、印度和澳洲以及幾個跨國海底財團的顯著勝利。我們在城域網路中的成功率依然強勁，到 2023 年，該領域的收入將增長到產品收入的近 50％，這是我們投資理論的重要組成部分，也是華為形勢下的未來機會。

Second, we had another banner year with U.S. hyperscalers and delivered our fourth consecutive year of [30] plus revenue growth in this segment, we've increased our market share with hyperscalers by approximately 1,000 basis points over the last four years, and our total exposure to them, including the indirect business that they drive through carrier service providers and subsea consortia is approaching approximately 50% of our revenue.

其次，我們與美國超大規模企業合作度過了又一個輝煌的一年，並連續第四年在該領域實現了 [30] 以上的收入增長，在過去四年中，我們在超大規模企業中的市場份額增加了約 1,000 個基點，我們對他們的總敞口，包括他們通過承運服務提供商和海底財團推動的間接業務，已接近我們的 50% 左右的收入。

Third, we exceeded $10 million in bookings for our subsystem products and recognized initial revenue in the year. This was an important milestone for the Company and consistent with the goals we communicated at our March Investor Day to date we received purchase orders from 26 customers that span our entire subsystems portfolio.

第三，我們的子系統產品訂單量超過 1,000 萬美元，並在當年實現了初始收入。這是該公司的一個重要里程碑，與我們在三月投資者日傳達的目標一致，迄今為止，我們已收到來自 26 個客戶的採購訂單，涵蓋了我們的整個子系統產品組合。

Additionally, membership in the exit, our forum continued to expand in 2023 and the new list of members included Lumentum and Arysta. And fourth, we announced the commercial availability of our 400 gig XR pluggables and also shipped our first metro systems with our bone own vertically integrated pluggables in Q4.

此外，在退出會員後，我們的論壇在 2023 年繼續擴大，新會員名單包括 Lumentum 和 Arysta。第四，我們宣布了 400G XR 可插拔產品的商業化供應，並在第四季度推出了首批採用我們自己的垂直整合可插拔產品的城域系統。

The use of pluggables in our metro systems will be a key driver of margin expansion getting into the back half of 2024. Our consistent performance over the past few years highlights that our strategy is working and that our portfolio is in the best shape it's ever been as evidenced by our win rates. Our key growth and profitability.

在我們的地鐵系統中使用可插拔設備將成為 2024 年下半年利潤擴張的關鍵驅動力。我們過去幾年的穩定表現凸顯了我們的策略是有效的，而且我們的投資組合處於有史以來的最佳狀態，我們的勝率就是明證。我們的關鍵成長和獲利能力。

Financial metrics are trending up into the right, and we feel great about the underlying long-term secular drivers in the business. However, in the near term, as we look at the first half of 2024. We're planning for a slow start to the year, consistent with what our peers in the industry are seeing and communicating.

財務指標呈上升趨勢，我們對業務中潛在的長期驅動力感到十分滿意。然而，就短期而言，我們展望 2024 年上半年。我們計劃在今年年初緩慢起步，與業內同行所看到和傳達的情況一致。

In Q1, in particular, we're experiencing a temporary low point in revenue and margin driven by two factors. First, from a revenue standpoint, approximately $35 million of revenue shifted out of the quarter with roughly $10 million being recognized earlier in Q4 and $25 million of shippable backlog shipped shifting from Q1 into future quarters.

特別是在第一季度，受兩個因素影響，我們的營收和利潤率暫時處於低潮。首先，從收入角度來看，約有 3500 萬美元的收入從本季度轉移出去，其中約 1000 萬美元的收入在第四季度早些時候得到確認，而 2500 萬美元的可發貨積壓訂單從第一季轉移到了未來幾個季度。

And second, from a margin standpoint, we expect gross margin to be approximately 400 basis points lower in Q1 due to a 300 basis point impact from the timing impact of higher line system shipments in Q1 associated with many of our global Tier 1 customer wins. This is ultimately a good news story in the back half of the year and for the longer term and 100 basis point impact from the combined effects of lower volume in Q1.

其次，從利潤率的角度來看，我們預計第一季的毛利率將下降約 400 個基點，這是由於第一季我們贏得許多全球一級客戶帶來的線路系統出貨量增加的時間影響帶來了 300 個基點的影響。從下半年和長期來看，這最終是一個好消息，第一季度交易量下降的綜合影響將產生 100 個基點的影響。

The good news here is our commercial wins and strategic deployments give me confidence that we remain on path to deliver a full year of revenue growth and expanded margins in 2024, with gross margins expected to return to 40% plus starting in Q2. The even better news is both the pace and scale of our design wins across the portfolio are accelerating in this quarter, Q1.

好消息是，我們的商業勝利和策略部署讓我相信，我們將繼續在 2024 年實現全年收入成長和利潤率提高，預計毛利率將從第二季開始回升至 40% 以上。更好的消息是，本季（第一季），我們在整個產品組合中贏得的設計勝利的速度和規模都在加快。

This is especially true for hyperscalers who we believe will continue to drive healthy levels of spending across the industry in the years ahead already. In the first 60 days of 2024, we've achieved major hyperscale influence strategic wins with our systems and subsystem solutions, including the following developments.

對於超大規模企業來說尤其如此，我們相信他們將在未來幾年繼續推動整個產業的健康支出水準。在 2024 年的前 60 天，我們憑藉系統和子系統解決方案取得了重大的超大規模影響力策略勝利，包括以下發展。

First, you've seen from our press release this morning, we've announced a new line system that puts our portfolio under the GX family. We've already landed wins with five service providers and hyperscalers that are expected to lead to significant revenue and margins with follow-on transponder sales. And we have a strong pipeline of additional customers.

首先，您從我們今天早上的新聞稿中看到，我們宣布了一項新的生產線系統，將我們的產品組合納入 GX 系列。我們已經與五家服務提供商和超大規模企業達成了合作，預計後續的轉發器銷售將帶來可觀的收入和利潤。我們擁有大量的新客戶。

Second, we have won our first contract with a major hyperscaler for 800 gig, three nanometer ZR ZR plus pluggables. This win has the potential to be among the largest contracts for the Company, scaling to hundreds of billions of dollars over a three year period beginning in 2025. This is the first of multiple contracts in this key market segment that we expect to land in 2024.

其次，我們贏得了與一家大型超大規模廠商簽訂的第一份合同，合約內容是 800Gb、3 奈米 ZR ZR 加可插拔產品。此次中標有可能成為該公司最大的合約之一，從 2025 年開始的三年內價值將達到數千億美元。這是我們預計將於 2024 年在該關鍵市場領域簽訂的多份合約中的第一份。

These pluggable wins will drive additional volume through our U.S. based semiconductor manufacturing assets and be incredibly it be incrementally accretive to the financial model. Third, influenced by traffic demands of hyperscalers.

這些可插拔的勝利將透過我們位於美國的半導體製造資產推動額外的產量，並且令人難以置信的是它將逐步增加財務模型。第三，受超大規模流量需求的影響。

We continue winning managed optical fiber networks or motion deals in India, the Middle East and Asia with at least three wins quarter to date in Q1 with three different hyperscalers. These private network builds are driven by hyperscalers and their preference for suppliers along with service providers across the globe.

我們繼續在印度、中東和亞洲贏得託管光纖網路或行動交易，第一季迄今至少與三家不同的超大規模企業贏得了三項勝利。這些私有網路的建置是由超大規模企業及其對全球供應商和服務提供者的偏好所推動的。

Fourth, in addition to shipping our first metro systems with our own 400 gig pluggables. We're also qualifying our 400 gig [ICE6] pluggables with a major Tier 1 service provider and a major US cable MSO for applications that include single fiber by die and business to business upon overlap.

第四，除了交付我們自己的 400 千兆可插拔設備的首批城域系統之外。我們也與一家主要的一級服務供應商和一家主要的美國有線電視 MSO 合作，對我們的 400 千兆 [ICE6] 可插拔設備進行認證，以用於包括單芯光纖和重疊的企業對企業的應用。

And fifth, we've invested in producing the first test chips for inside the data center applications driven by AI. that will drive down power and leverage our U.S. based semiconductor assets. While these data are early and architectures are still evolving, we believe our unique vertical integration and indium phosphide capabilities are competitive differentiators inside the data center. We look forward to talking to you on the progress as this further develops based on the stack-up of those strategic wins.

第五，我們投資生產了首批用於人工智慧驅動的資料中心內部應用的測試晶片，這將降低功耗並利用我們在美國的半導體資產。雖然這些數據還處於早期階段，而且架構仍在不斷發展，但我們相信，我們獨特的垂直整合和磷化銦能力是資料中心內部的競爭優勢。我們期待在這些戰略勝利的基礎上與您討論進一步發展的進展。

My confidence in our strategy portfolio and execution is as high as it's ever been despite the short term and inventory digestion customers are going through and the timing of the mix impacts of laying down new routes in the long term, demand for bandwidth continues to grow as hyperscalers accelerate the rollout of artificial intelligence, machine learning workloads and service providers drive fiber deeper into networks.

儘管客戶正在經歷短期和庫存消化，並且長期鋪設新路線的混合影響時機，但我對我們的戰略組合和執行的信心仍然很高，隨著超大規模企業加速推出人工智能、機器學習工作負載以及服務提供商將光纖深入網絡，對頻寬的需求持續增長。

We believe we're uniquely positioned to gain with this with these customer segments. We look forward to diving deeper into our product and technology strategy at this year's Optical Fiber Communications Industry Show in San Diego, California, on March 27.

我們相信，我們擁有獨特的優勢，可以從這些客戶群中獲益。我們期待在 3 月 27 日於加州聖地牙哥舉行的今年光纖通訊產業展會上更深入地探討我們的產品和技術策略。

And as I close today, I'd like to thank the Infinera team for another solid quarter of execution and results and their continued commitment to our customers and one another. I'd also like to thank our partners, customers and shareholders for their continued support. I couldn't feel better about our strategic position, and I believe we made we remain well positioned to deliver our seventh consecutive year of revenue growth, expand margins by approximately 200 basis points and deliver EPS growth of at least 25% in 2024.

今天結束之際，我要感謝 Infinera 團隊又一個季度的穩健執行和業績，以及他們對我們的客戶和彼此的持續承諾。我還要感謝我們的合作夥伴、客戶和股東的持續支持。我對我們的策略地位感到非常滿意，我相信我們能夠繼續保持良好的地位，實現連續第七年的收入增長，利潤率提高約 200 個基點，並在 2024 年實現每股收益至少 25% 的增長。

I'll now turn the call over to Nancy to cover the preliminary financial results for the quarter and our Q1 outlook. Nancy?

現在我將電話轉給南希，介紹本季的初步財務表現和第一季的展望。南希？

Thanks, David. Good afternoon, everyone. I will begin by addressing our third quarter filings and then cover our preliminary (technical difficulty) followed by our outlook for the first quarter of 2024. For your reference, we have included a GAAP to non-GAAP reconciliation of our preliminary financials and outlook in our press release to assist with my commentary.

謝謝，大衛。大家下午好。我將首先討論我們的第三季文件，然後介紹我們的初步（技術難題），然後介紹我們對 2024 年第一季的展望。為了供您參考，我們在新聞稿中加入了 GAAP 與非 GAAP 的初步財務和展望對賬，以協助我的評論。

As a reminder, any financial commentary (technical difficulty) filed today for Q4 '23 or the full fiscal 2023 period are based on our preliminary non-GAAP results. As most of you are aware, we filed our Q3 '23 form 10-Q on February 29. This represented a tremendous effort by the Infinera team and our auditors over the past few months.

提醒一下，今天提交的針對 2023 年第四季度或整個 2023 財年的任何財務評論（技術難題）均基於我們的初步非 GAAP 結果。正如你們大多數人所知，我們在 2 月 29 日提交了 2023 年第三季的 10-Q 表。這體現了 Infinera 團隊和我們的審計人員在過去幾個月中付出的巨大努力。

Given the intensive and time-consuming nature of the matters under review, I want to emphasize that despite the delayed review process, there were no adjustments to prior period financials. Our results for Q3 were revenue of $392 million. Gross margin of 41.9%, operating income of $30.3 million and diluted EPS of $0.08, all of which exceeded the midpoint of our original outlook range. Since our efforts over the past few months have been directed toward completing the work necessary to file our Q3 '23 results and other related SEC filings.

鑑於審查事項的密集性和耗時性，我想強調的是，儘管審查過程有所延遲，但並未對前期財務狀況進行調整。我們第三季的業績是營收 3.92 億美元。毛利率為 41.9%，營業收入為 3,030 萬美元，稀釋每股收益為 0.08 美元，均超過了我們最初預期範圍的中點。由於我們過去幾個月的努力一直致力於完成提交 23 年第三季業績和其他相關 SEC 文件所需的工作。

Our final results for Q3 -- Q4 '23 and fiscal year '23 have been delayed. As a result, we are sharing preliminary unaudited ranges today. We currently expect to have our year end audits completed and file our fiscal year '23 10-K in the next five to seven weeks or about mid-April and plan to be back on our normal cadence in Q1.

我們 2023 年第三季至第四季以及 2023 財年的最終業績已被推遲。因此，我們今天分享初步的未經審計的範圍。我們目前預計在未來五到七週內或四月中旬完成年終審計並提交 23 財年的 10-K 報告，並計劃在第一季恢復正常節奏。

Turning to our performance in the fourth quarter. I am pleased with the strong finish we had to the year, the midpoint of our preliminary range of $435 million to $452 million is expected to be at or above our outlook range. This quarterly performance was primarily driven by strength in the Americas and with ICPs or hyperscalers. Geographically, we derived over 65% of our Q4 revenue from domestic customers, a level higher than normal. Given the strength at U.S. hyperscalers and service provider customers. We had one ICP customer that accounted for over 10% of our revenue in the quarter.

談談我們第四季的表現。我很高興看到我們今年取得了強勁的成績，我們初步預期的 4.35 億美元至 4.52 億美元的中點將達到或高於我們的預期範圍。本季業績主要得益於美洲地區以及 ICP 或超大規模企業的強勁表現。從地理上看，我們第四季超過 65% 的收入來自國內客戶，這一水平高於正常水平。鑑於美國超大規模企業和服務供應商客戶的實力。我們有一位 ICP 客戶，營收佔本季我們營收的 10% 以上。

Turning to gross margin, we expect the midpoint of our Q4 preliminary gross margin range of 39% to 41% to be above that in 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 and ongoing cost improvements.

談到毛利率，我們預期第四季初步毛利率中位數為 39% 至 41%，高於我們的預期範圍，且與去年同期相比有所上升。本季的毛利率受益於更高的垂直整合度、供應成本的持續下降以及持續的成本改進。

Overall, I am encouraged by the trend in 2023, with gross margin expected to approach 40% for the year and be up approximately 300 basis points for the year. Preliminary operating margin of 5.7% to 8.3% is expected to be within our outlook range, while operating expenses of $145 million to $147 million are expected to be slightly above our outlook range.

總體而言，我對 2023 年的趨勢感到鼓舞，預計全年毛利率將接近 40%，全年增長約 300 個基點。初步預期營業利潤率為 5.7% 至 8.3%，在我們的預期範圍內，而預計營業費用為 1.45 億美元至 1.47 億美元，略高於我們的預期範圍。

Our Q4 operating expenses included approximately $3 million of incremental spend as a result of the extended financial review I referred to earlier. We expect this level of incremental spend to continue through Q1 and partially into Q2 and Q4.

由於我之前提到的延長財務審查，我們的第四季營運費用包括約 300 萬美元的增量支出。我們預計這種增量支出水準將持續整個第一季度，並部分延續到第二季​​和第四季。

We also executed on a tax structuring initiative that allowed us to true up a $7 million tax benefit for current year and prior years. The resulting preliminary diluted EPS is expected to be $0.07 to $0.13, with the midpoint representing above our outlook range.

我們還實施了一項稅收結構計劃，使我們能夠為本年度和前幾年實現 700 萬美元的稅收優惠。預計初步攤薄每股收益為 0.07 美元至 0.13 美元，中間值高於我們的預期範圍。

Moving on to the balance sheet and cash flow items, we ended the quarter with approximately $174 million in cash and cash equivalents. We generated over $50 million of free cash flow in the quarter, and we benefited from higher net income, the partial work-down of our inventory and an improvement in shipment linearity.

轉到資產負債表和現金流量項目，我們在本季結束時擁有約 1.74 億美元的現金和現金等價物。我們在本季度產生了超過 5000 萬美元的自由現金流，並且受益於更高的淨收入、庫存的部分減少以及出貨線性的改善。

Let me now turn to the outlook for the first quarter of 2024. As David mentioned, like the rest of the industry, we are expect we are expecting a slow start to the year as our customers continue to work down their excess inventory and manage CapEx prudently in the short term.

現在我來談談2024年第一季的展望。正如大衛所提到的，與業內其他公司一樣，我們預計今年的開局將會比較緩慢，因為我們的客戶將繼續減少過剩庫存並在短期內謹慎地管理資本支出。

Therefore, specific to Q1, we expect revenue to be in the range of $320 million to $350 million, including the impact of approximately $35 million of revenue that shifted out in the quarter. Gross margin to be in the range of 36% to 38%. This lower margin includes a 400 basis point margin impact primarily from higher line system shipments with fill expected in the following quarters and from lower volumes in Q1.

因此，具體到第一季度，我們預計營收將在 3.2 億美元至 3.5 億美元之間，其中包括本季轉移出的約 3,500 萬美元收入的影響。毛利率在36%至38%之間。較低的利潤率包括 400 個基點的利潤率影響，這主要由於線路系統出貨量增加（預計在接下來的幾個季度內完成）以及第一季的出貨量較低。

Operating expenses to be in the range of $143 million to $147 million, including approximately $3 million of incremental expenses related to support our fiscal '23 audit and an operating margin loss of 8.5% to 3.5% below the operating loss line, we assume approximately $8 million for net interest expense and approximately $4 million for taxes.

營運費用將在 1.43 億美元至 1.47 億美元之間，其中包括與支持我們的 23 財年審計相關的約 300 萬美元的增量費用，以及低於營運虧損線 8.5% 至 3.5% 的營運利潤率損失，我們假設淨利息支出約為 800 萬美元，稅金約為 400 萬美元。

Finally, we are anticipating a net loss per share of $0.18 to $0.1, assuming a basic share count of approximately 232 million shares. As you heard from us this afternoon. Overall, we feel great about our strategy and the strength of our portfolio as evidenced by the pace and scale of recent design wins across both our systems and subsystems portfolios.

最後，我們預期每股淨虧損為 0.18 美元至 0.1 美元，假設基本股數約為 2.32 億股。正如您今天下午聽到的。總體而言，我們對我們的策略和產品組合的實力感到非常滿意，這一點從我們系統和子系統產品組合近期設計勝利的速度和規模就可以看出。

In the first 60 days of the quarter. I am encouraged by our win rate deployment of line systems setting us up for future margin expansion. I'm encouraged by the growth of our sales funnel and the margins on our bookings, which I believe puts us on a path to drive revenue growth of 2% to 3% for the full year and deliver on our seventh consecutive year of revenue growth, expand gross margin by approximately 200 basis points for the year and earnings per share expansion with EPS growth of at least 25% in 2024.

在本季的前 60 天。我對我們的線路系統勝率部署感到鼓舞，這為我們未來的利潤擴張做好了準備。我們的銷售管道和訂單利潤率的成長令我感到鼓舞，我相信這將使我們全年收入增長 2% 至 3%，並實現連續第七年的收入增長，全年毛利率將提高約 200 個基點，每股收益將擴大，到 2024 年每股收益將增長至少 25%。

As I close today, I would like to reiterate that I'm pleased with our '23 performance for the full year. We hit several important milestones in the year with gross margin approaching 40%, bookings exceeding $10 million for our subsystems products, vertical integration in the mid-50th percentile for the Company and we proactively strengthened our balance sheet.

在今天結束之前，我想重申，我對我們 23 年全年的表現感到滿意。我們在這一年中實現了幾個重要的里程碑，毛利率接近 40%，子系統產品的訂單超過 1000 萬美元，公司的垂直整合率達到 50% 左右，並且我們積極加強了資產負債表。

Looking ahead, we remain laser focused on continuing to accelerate revenue growth, drive earnings per share expansion and generate cash flow in the quarters and years ahead. We plan to file our fiscal year 10-K in the next five to seven weeks, as I said earlier, and we are back on track to file our Q1 10-Q on our normal cadence.

展望未來，我們將繼續專注於繼續加速收入成長、推動每股收益擴張並在未來幾季和幾年產生現金流。正如我之前所說，我們計劃在未來五到七週內提交財年 10-K 報表，並且我們將按照正常節奏提交第一季 10-Q 報表。

In closing, I would like to take to take the time to thank the Infinera team, especially my finance team for their continued commitment to innovation and execution as well as to our partners, customers and shareholders for your continued patience, cooperation and support.

最後，我想藉此機會感謝 Infinera 團隊，特別是我的財務團隊對創新和執行的持續承諾，以及感謝我們的合作夥伴、客戶和股東的持續耐心、合作和支持。

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

克里斯塔，現在我想開始回答問題。

(Operator Instructions) Mike Genovese, Rosenblatt Securities.

（操作員指示）Rosenblatt Securities 的 Mike Genovese。

Great. Thank you. Um, can you start by giving us more color on this major hyperscale win, the three nanometer ZR plus 800 G. pluggable. Just with more color on what that application is, what that product purpose.

偉大的。謝謝。嗯，您能否先向我們詳細介紹這一重大超大規模勝利，即三奈米 ZR 加 800 G 可插拔。只是更詳細地說明該應用程式是什麼，該產品的用途是什麼。

Thank you, Chair. And Mr. Ron Johnson, do you want to take that?

謝謝主席。羅恩·約翰遜先生，您願意接受這個嗎？

Yes. Thanks, David. Yes, Mike. So we had to close a contract with a major hyperscaler basically to deliver product early '25 with revenue expectation in '25 and the application is an 800 gig PCS pluggable that would go into multiple different form factors. QSFP, OSAB, CFPT two and provide a capability to optimize their power per bit performance and their cost per bit. And this will be interoperable and in multiple parts of their network, effectively addressing all of their their terrestrial applications.

是的。謝謝，大衛。是的，麥克。因此，我們必須與一家大型超大規模廠商簽訂合同，基本上在 25 年初交付產品，並預期在 25 年實現收入，該應用程序是一個 800 千兆 PCS 可插拔應用程序，可以採用多種不同的外形尺寸。QSFP、OSAB、CFPT 兩者都提供了優化其每位元功率效能和每位元成本的能力。並且它將在其網路的多個部分實現互操作，從而有效地解決其所有地面應用。

Still in short, point-to-point Metro peering applications, even in long-haul applications. So it's an opportunity to drive lower power, lower cost for for all of their terrestrial network in a minute and the affiliates from a contract standpoint, it is a it's kind of the largest contract potential that the company has dealt with in its history.

仍在短距離、點對點城域對等應用中，甚至在長途應用。因此，這是一個在一分鐘內降低所有地面網路和附屬網路功耗、降低成本的機會，從合約的角度來看，這是該公司歷史上處理過的最大的合約潛力。

So it really kind of helped launch the subsystem business that we talked about going forward with the kind of volumes that really spin the fab nicely for cost reduction that will help across the portfolio, particularly and now it sounds like it's some GCI. application more than a datacom inside the data center. You have the application for it. Is that correct?

因此，它確實有助於啟動我們所討論的子系統業務，其規模能夠真正推動晶圓廠的運轉，從而降低成本，這將有助於整個產品組合，特別是現在聽起來它是一些 GCI。應用程序，而不是資料中心內的資料通訊。您有它的應用程式。對嗎？

Okay, perfect. Great. And then on that, I would just say at the outside the data center, correct?

好的，完美。偉大的。然後，關於這一點，我只想說在資料中心外面，對嗎？

Correct. Then I would just say it's outside the data centre.

正確的。那我只想說它在資料中心外面。

And then just my other question is on, I guess, just some color on gross margins as we move through the year. It sounds like you're calling for 200 basis points of gross margin improvement this year, if that's correct, but we're starting with it with a bad quarter in 1Q for some specific reasons. So ambition is we understand how things get a lot better later in the year.

然後我的另一個問題是，隨著今年的推進，毛利率會有一些變化。聽起來您要求今年的毛利率提高 200 個基點，如果這是正確的，但由於某些特定原因，我們在第一季表現不佳的情況下就開始這樣做了。因此，我們的目標是了解今年稍後情況會如何變得更好。

Yes, I looked at the amount of line systems that we're laying out in the first quarter and the cost of that on we had significant. It's just that it's just a heavy heavy mix, which bodes well for the second half and being heavy.

是的，我查看了我們在第一季鋪設的線路系統的數量以及相應的成本。只是，這只是一種重重的混合，預示著下半場會很好，而且很重。

So while we start out, you know, we look at our inbound bookings and their standard margin rates, and we look at the forecast for the remainder of the year and the fill on those line systems as well as additional line systems we still intend to deploy and it gives us comfort around that 200 basis point roughly 200 basis point improvement year over year, just like we committed to last year and delivered last year and then you're right, sounds good. Thanks a lot, Beckman.

因此，當我們開始時，你知道，我們會查看我們的入站預訂量及其標準保證金率，我們會查看今年剩餘時間的預測和這些線路系統的填充情況以及我們仍打算部署的其他線路系統，這讓我們感到安心，大約 200 個基點，同比去年的改善大約 200 個基點，就像我們去年承諾的和去年交付的一樣，那麼你是對你去年的承諾。非常感謝，貝克曼。

Alexander Henderson, Needham & Company.

亞歷山大·亨德森，Needham & Company。

Hoping you could help us a bridge to 25% EPS growth on 2% to 3% revenue nice but modest 200 basis points, the margin expansion is at that something is it very tight OpEx cost or declining OpEx customer? How do we bridge that?

希望您能幫助我們在 2% 至 3% 的收入基礎上實現 25% 的 EPS 增長，這雖然不錯，但只是 200 個基點的適度增長，利潤率擴張是否處於某種狀態，是運營支出成本非常緊張還是運營支出客戶不斷減少？我們如何彌補這項缺陷？

Yes, I think it's a combination of all of those, right. It's the growth and growth rate on the top line and the expanding 200 basis points of margin right so I mean knowing we're approaching 40%, I think approaching 42% for the full year.

是的，我認為這是所有這些的結合，對。這是營業收入的成長和成長率，以及利潤率擴大 200 個基點，所以我的意思是，我們知道我們的利潤率接近 40%，我認為全年的利潤率接近 42%。

And then we will be certainly keeping our operating expenses in control. You'll see probably two areas think of it in the $15 million increase for the for the year in total, some of which we talked about in terms of expenses on the audit and some catch-up we have to do in the first half.

然後我們肯定會控制我們的營運費用。您可能會看到，全年總計 1500 萬美元的增長中有兩個方面值得考慮，其中一些是我們在審計費用方面討論的，還有一些是我們必須在今年上半年完成的追趕工作。

But also the work that we're doing in R&D in particular and really investing in that growth. And as David mentioned, some of the chip development that we're doing inside the data center, and we'll you'll see a small step-up there. But net-net, it gets us into that 25% growth in EPS.

而且我們也特別在研發方面做了大量工作，真正為這一成長進行了投資。正如大衛所提到的，我們在資料中心內部進行一些晶片開發，你會看到那裡取得了小幅進步。但淨額方面，它使我們的每股盈餘實現了 25% 的成長。

Hey, Alex, it is in fact, if I if I would just remind you in '23, right, if you look at the contemplated ranges will grow 2% to 3% and EPS will be up over 7%. So the leverage is there in the model.

嘿，亞歷克斯，事實上，如果我提醒你一下，在 23 年，如果你看一下預期的範圍將增長 2% 到 3%，每股收益將增長 7% 以上。因此模型中存在槓桿作用。

Just to be clear, what is the drag that you're assuming relative to the accounting issues in the numbers, both the fourth quarter and in '24?

需要明確的是，相對於第四季和 24 年的數位會計問題，您認為的阻力是什麼？

Sure. It's about $3 million in Q4. It's about the same $3 million roughly in Q1. And then it should temper from that in Q2 and get back to normal.

當然。第四季約 300 萬美元。與第一季相比，這一數字約為 300 萬美元。然後它應該會在第二季度緩和並恢復正常。

Thank you so much, sir, myself.

先生，我本人非常感謝您。

Thanks you.

感謝您。

George Notter, Jefferies.

喬治·諾特（George Notter），傑富瑞集團（Jefferies）。

Hi, guys. How's it doing? Thanks very much for the question. I guess I wanted to ask about Tom, help me understand sort of the cadence on the top line here, right? So a really strong Q4, a big step down in Q1. I would imagine there's a bit of seasonality here, but I think the narrative is really around excess inventory. And I guess as I think about it, the excess inventory issue has been around for a few quarters now. You guys have been talking about it for a few quarters. Sir. So why have a strong Q4 and a step down in Q1? And how does that mesh with this whole narrative around working off excess inventory fix?

嗨，大家好。怎麼樣？非常感謝您的提問。我想問一下湯姆，請他幫我理解這裡第一行的節奏，對嗎？因此，第四季表現非常強勁，而第一季則大幅下滑。我想這裡面有一點季節性，但我認為真正的原因是庫存過剩。我想，庫存過剩問題已經存在好幾個季度了。你們已經討論這個問題好幾個季度了。先生。那麼，為什麼第四季表現強勁，而第一季卻出現下滑呢？那麼這與解決過剩庫存問題的整個敘述有什麼關係呢？

Yes. No, it's a good, a very good question. Remember that when I talk our exposure as well, I think most people think of the service provider exposure in our business and think the likes of Verizon AT. and TBT. Vodafone. Yes, if I just took those four as an example, that's probably on the top less than 5% of our revenue in 2023.

是的。不，這是一個好問題，一個非常好的問題。請記住，當我談論我們的曝光度時，我認為大多數人都會想到我們業務中的服務提供者曝光度，並想到 Verizon AT 和 TBT 之類的公司。沃達豐。是的，如果我只以這四個為例，那麼這可能占到我們 2023 年收入的不到 5%。

And when I look at our exposure from the web scalers or ICPs, as we call them both direct, I think in Q4, it was probably approaching 40% for the year. It's probably a third of our business. When I take into account these our managed fiber-optic deals that they're influencing, it's close to 50%.

當我查看我們從網路擴展器或 ICP（我們稱之為直接）獲得的曝光率時，我認為在第四季度，它可能接近全年的 40%。這大概占我們業務的三分之一。當我考慮到他們影響的這些管理光纖交易時，這個比例接近 50%。

So when I when we looked into Q1, we had some amount of shippable backlog between a few customers that moved from Q1 just scheduling wise out into Q2 and Q3. And we were able to accomplish about $10 million worth of projects in Q4. So that does explain part of the step down.

因此，當我們研究第一季時，我們發現一些客戶有一定數量的可出貨積壓訂單，這些客戶從第一季轉移到第二季和第三季。我們在第四季完成了價值約 1000 萬美元的專案。這確實解釋了部分降級的原因。

And we've been winning these long term strategic deals in the quarter. But the book ship business has a bit has been a bit slower as some of our customers, as everybody is aware of, are continuing to burn down inventory, which we think is about the end of the story as we get out of the first half. And they're also being a bit cautious on setting their budgets. And Q1 is always as you know, in our industry and for our company is always our toughest quarter and there we go.

本季我們贏得了這些長期策略交易。但正如大家所知，由於我們的一些客戶繼續消耗庫存，圖書運輸業務略顯緩慢，我們認為隨著上半年的結束，這種情況即將結束。他們在製定預算時也比較謹慎。如您所知，對於我們行業和公司而言，第一季始終是最艱難的一個季度，我們就是這樣。

Got it was excess inventory issue that in Q4 as well?

第四季也存在庫存過剩問題嗎？

Yes, I mean, in terms of raw bookings, we did well in Q3 and Q4 having a book-to-bill of about one for those quarters, but it has not been a loose environment in terms of those dollars. It is beginning at segment by segment to be able to wear off. And that's why I kind of like our exposure on the on the ICT. front and I hate to say it, I want more positive business with customers that I mentioned that are major Tier 1 service providers, but they just they're not as significant of an impact to our business cash.

是的，我的意思是，就原始訂單而言，我們在第三季和第四季表現良好，這兩個季度的訂單出貨比約為 1，但就這些美元而言，這並不是一個寬鬆的環境。它是逐段開始逐漸磨損的。這就是為什麼我喜歡我們在 ICT 方面的曝光。我不想這麼說，我希望與我提到的主要一級服務提供者的客戶開展更多積極的業務，但他們對我們的業務現金的影響並不那麼大。

Okay. Thinking about upside.

好的。思考好處。

Thanks, George.

謝謝，喬治。

Simon Leopold, Raymond James.

西蒙李奧波德、雷蒙詹姆斯。

Thank you for taking the question just first, David, if you could clarify, I think you made the point that direct plus indirect sales to hyperscale or ICPs with some close to 50%. But what was the value of the direct sales to hyperscalers again?

首先感謝您回答這個問題，David，如果您能澄清一下，我認為您提到了直接加上間接銷售給超大規模或 ICP 的比例接近 50%。但是直接向超大規模企業銷售的價值又是多少呢？

Yes, it's about 30 -- about a third of our product revenues. And in 2023, certainly in Q4, in Q4, it was approaching 40%.

是的，大約占我們產品收入的30%——約三分之一。到 2023 年，肯定是第四季度，第四季度，這一比例接近 40%。

So I guess one of the things I'm trying to sort of square here is the full year growth outlook of 2% to 3%. I would assume we'd expect fall through from that hyperscale group survey, they are growing much better than that 2% to 3%, which means something else is declining. You have not guided by vertical in the past, but maybe if you could help us unpack sort of the relative vertical movements to sort of square that.

所以我想我在這裡試圖解決的一件事就是全年成長預期為 2% 至 3%。我認為我們預計超大規模集團調查會出現下滑，他們的成長速度遠高於 2% 到 3%，這意味著其他東西正在下降。您以前沒有透過垂直方向進行引導，但也許您可以幫助我們解開相對垂直運動，以便對其進行調整。

Yes. Look, I think the hyperscalers, if you look at the average CapEx are expected to grow in the double digits still in 2024. Again, we're winning the line systems, the new line systems with both hyperscalers and with CSPs. They will be laying those out based on wins that we just had over the last 60 days. They probably they don't probably they lay those out in the back half of the year and begin to fill.

是的。看，我認為，如果你看一下超大規模企業的平均資本支出，預計到 2024 年仍將實現兩位數成長。再次，我們贏得了線路系統，即超大規模和 CSP 的新線路系統。他們將根據我們過去 60 天取得的勝利來製定這些計劃。他們可能不會在下半年就把這些計畫制定出來並開始填補。

So you're right, some of that we expect continued strength in hyperscale. The wholesalers are continuing to do well. Subsea is continuing to do well. I think you're going to see a lot of these Tier 1 wins that we have just not have the scale until we get into 2025.

所以你是對的，我們預計超大規模將會繼續保持強勁勢頭。批發商的經營狀況持續良好。海底業務持續表現良好。我認為，你會看到很多一級勝利，只是到 2025 年我們還沒有達到這樣的規模。

Great. And you also mentioned done some very significant share gains over a period of number of years with this group of customers. But who have you been displacing? Thank you.

偉大的。您也提到，多年來，我們在這群客戶中取得了非常顯著的市佔率成長。但你取代了誰呢？謝謝。

Yes, that's you know, that's a good question on, I'm sure are one-offs. It depends on the situation and you probably know better than I do. I'm not going to I won't comment into our particular competitor's business. Appreciate it. Thanks, guys.

是的，您知道，這是一個很好的問題，我確信都是一次性的。這取決於具體情況，你可能比我更了解。我不會對我們特定競爭對手的業務發表評論。非常感謝。謝謝大家。

Thanks.

謝謝。

Meta Marshall, Morgan Stanley.

摩根士丹利的 Meta Marshall。

And that I think is paying does not have that Karan on for Meta ahead of us. Hey, Tom, I mean, I just wanted to double-click on sort of the $25 million that got pushed out into future quarters. Any maybe further detail on why that was pushed out? Or was it just simply timing of contracts?

我認為，Karan 為我們前面的 Meta 付出的代價是不可估量的。嘿，湯姆，我的意思是，我只是想雙擊一下被推遲到未來幾季的 2500 萬美元。有沒有關於推遲這項計劃的更多細節？還是這僅僅是合約的時間安排？

And then the point you made on sort of Q4 still being impacted by inventory digestion I guess, is where do you feel we are in terms of service provider inventory digestion and sort of what you're expecting across the year with that?

然後，您提到的第四季度仍然受到庫存消化的影響，我想，您認為服務提供者庫存消化的情況如何，以及您對全年庫存消化的預期如何？

Yes, I'm going to under $25 million. I mean, that's it, but from backlog. So it's just scheduling in terms of timing of people putting projects in, whether it's into a data center or whether it's out into a network and that happens from time to time. Unfortunately, it happened in Q1 as people were laying out resources in our expectations to where our customers were.

是的，我會把金額控制在 2,500 萬美元以下。我的意思是，就是這樣，但是來自積壓。因此，這只是對人們投入專案的時間進行安排，無論是進入資料中心還是進入網絡，這種情況都會時有發生。不幸的是，它發生在第一季度，因為人們根據我們的預期將資源部署到我們的客戶所在的地方。

The second part of the question is, look, I think we have been saying consistently that we thought this year the front half would be softer than the back half because from our not from analyst reports from our direct contact with both CST.s wholesalers, ICPs cable operators.

問題的第二部分是，你看，我認為我們一直在說，我們認為今年上半年會比下半年疲軟，因為根據我們與 CST 批發商、ICP 有線電視運營商的直接聯繫，而不是根據分析師報告。

We do think as we get into the back half and look based on some of the infrastructure wins we're getting now, we believe that the spend and the inventory situation frees up in the back half, and that's been consistent. Industry commentary, I believe if you talk through the value chain in the industry.

我們確實認為，隨著我們進入下半年，並基於我們現在獲得的一些基礎設施勝利，我們相信下半年的支出和庫存狀況將會得到釋放，而且這種情況一直持續下去。行業評論，我相信如果你談論行業中的價值鏈。

No, that makes a lot of sense. And then maybe moving on to sort of operating margins on Q1 coming down a little bit but I guess just how you're thinking about operating margins throughout the year and maybe just in the back half of the year, just how much of a benefit you think the pluggables opportunity can be to margins. Thank you.

不，這很有道理。然後也許第一季的營業利潤率會下降一點，但我想您是如何考慮全年的營業利潤率，也許只是在下半年，您認為可插拔機會能為利潤率帶來多大的好處。謝謝。

Yes, on the operating margin, but you should see consistent improvement kind of quarter to quarter to quarter through the year. As you see the revenue and the gross margin step-up. And as I mentioned, you'll see some tapering off in terms of that. I'm unique in expand. We're doing right now within G&A in terms of gross margin relative to subsystems, it's going to be it will be modest, right? There's not going to be a big step-up that you'll see in '24.

是的，就營業利潤率而言，但你應該會看到全年各季度的持續改善。正如您所看到的，收入和毛利率都在上升。正如我所提到的，你會看到這種情況減少。我在擴展方面是獨一無二的。就目前我們管理費用中相對於子系統的毛利率而言，它會比較適中，對嗎？24 年你不會看到有太大的進步。

But really as David mentioned with some of the wins that we see at the '25 and no benefit to us as we start to see that revenue really step up and the opportunities that we're seeing are giving us more and more confidence in particular in terms of the funnel that we see. And then as I mentioned in my statement earlier, that the margin on those bookings and the improvements that we're seeing there as well.

但正如大衛所提到的那樣，我們在 25 週年慶典上看到的一些勝利並沒有為我們帶來任何好處，因為我們開始看到收入真正增加，而我們看到的機會讓我們越來越有信心，特別是就我們所看到的管道而言。正如我在之前的聲明中提到的那樣，這些預訂的利潤率以及我們也看到了改善。

Yes, I would say just real quick, let's differentiate between two things there so that the external sales of pluggables like to the webscale or that Ron went through very exciting and we don't expect that to positively impact margin because that's a '25, '25 impact for us. The biggest impact is what we talked about before to the 200 basis points of margin improvement is really remember that huge increase in metro that we're getting this year will now be able to integrate our own plugs into that. And so that will be a margin benefit leading to that 200 basis point improvement for internal consumption.

是的，我想說得很快，讓我們區分兩件事，即可插拔設備的外部銷售，例如網絡規模或羅恩經歷的非常令人興奮的事情，我們不希望這對利潤產生積極影響，因為這對我們來說是'25，'25 的影響。最大的影響是我們之前談到的 200 個基點的利潤率提高，真正記住的是，我們今年獲得的地鐵大幅增長現在可以將我們自己的插頭整合到其中。因此，這將帶來利潤收益，使內部消費提高 200 個基點。

Okay, sure.

好的，當然。

Dave Kang, B. Riley.

戴夫康、B.萊利。

Yes, I think your first question is regarding your vertical integration. Just wondering if you can provide what that was and how we should think about it first quarter and beyond.

是的，我認為您的第一個問題是關於您的垂直整合。只是想知道您是否可以提供那是什麼以及我們應該如何看待第一季及以後的情況。

Yeah, for for the year, it was in the mid-50s. So and we should continue to see that expand, particularly in '24 as we just talked about with Metro coming online.

是的，就那一年而言，溫度大約在 50 度以上。因此，我們應該繼續看到這種擴張，特別是在 24 年，正如我們剛才談到的，Metro 上線了。

Correct. Got it. And then on your side outlook for the year, how should we think about first half versus second half. Should we be thinking about like something like maybe 40/60 or even more back-end loaded?

正確的。知道了。然後，就您對今年的展望而言，我們應該如何看待上半年和下半年。我們是否應該考慮像 40/60 甚至更多的後端加載？

Yes.

是的。

I would say probably we did very similar to '22. So maybe 43/57, [42]/58 can just to be safe harbor, whichever [48] was at roughly Amazon offering a scrip dividend will be 47%, 40%. But this year, I would say it's more like '22 played out.

我想說我們可能做的和 22 年非常相似。因此，也許 43/57、[42]/58 可以只是一個安全港，無論 [48] 哪一個大約是亞馬遜提供的股票股利將是 47%、40%。但今年，我想說它更像是 22 年發生的事情。

Got it. Thanks.

知道了。謝謝。

Samik Chatterjee, JPMorgan.

摩根大通的 Samik Chatterjee。

Maybe. Yes, you have I mean, I understand most of the ICP probably quarterly today. Yes. And India as a region, how should we think about what areas and I have a follow-up now let's get it get.

或許。是的，我的意思是，我了解今天大部分的 ICP 可能是季度性的。是的。而印度作為一個地區，我們應該如何考慮哪些領域，我現在有一個後續問題，讓我們開始吧。

So obviously, again, very highly indexed on the P strength, actually, Alex Henderson brought this up, but I think four quarters ago about when you do the subsea, are you getting the terrestrial benefit. We're just beginning to see that. So I would tell you India and Asia sounds like I think we're getting some static from your solid.

因此顯然，P 強度再次具有非常高的指數，實際上，亞歷克斯亨德森提出了這一點，但我認為四個季度前，當你進行海底作業時，你是否獲得了陸地效益。我們才剛開始看到這一點。所以我想告訴你，印度和亞洲聽起來像我認為我們從你的固體中得到了一些靜態資訊。

And again, I think India and Asia, we're seeing nice wins again already in the first 60 days with three different content providers doing those landed deal. So we do expect the Asia Pacific region. We've had some new leadership there, some new staffing, they're doing a great job. The funnel is full in the Middle East.

而且，我認為，在印度和亞洲，我們在前 60 天就再次看到了不錯的勝利，三個不同的內容提供者達成了這些交易。所以我們確實期待亞太地區。我們有一些新的領導，一些新的員工，他們做得很好。中東地區的漏斗已滿。

We see big opportunities and are winning big opportunities, both in subsea and terrestrial in the Middle East. So that's been a nice growth area for us. I think you won't see it in the numbers in 2024, but you will see it in the wins in Europe with Tier 1 service providers. We are winning in Europe. I expect that to see that really scale in terms of the numbers in 2025.

我們在中東的海底和陸地上看到了巨大的機遇，並且正在贏得巨大的機會。所以這對我們來說是一個很好的成長領域。我認為你不會在 2024 年的數字中看到這一點，但你會在歐洲一級服務提供者的勝利中看到這一點。我們在歐洲取得了勝利。我預計到 2025 年這數字將真正擴大。

And again, as I as I said in the prepared remarks on the 400 gig pluggable front, we have North America ag cable providers. That is we have a great application of that software defined pluggable for fiber limited areas for by die bidirectional as well as upon overlay that allows them to use the same fiber.

再次，正如我在關於 400 千兆可插拔前端的準備好的發言中所說的那樣，我們有北美 ag 電纜提供商。也就是說，我們對該軟體有一個很好的應用，它定義了可插拔的光纖受限區域，透過雙向以及覆蓋，允許它們使用相同的光纖。

So I expect again, design wins there. And then for cable in 2025 to become a nice growth area for us because it's been a too small for us. Historically, all of those are consistent with what we said in our March Analyst Day in terms of concentrating on these most win deals on Asia Pacific on India, in particular and on the Middle East.

所以我再次預計，設計將會獲勝。然後，到 2025 年，有線電視將成為我們一個很好的成長領域，因為對我們來說，有線電視的規模還太小。從歷史上看，所有這些都與我們在三月分析師日所說的一致，即集中精力於亞太地區、特別是印度和中東地區最成功的交易。

Sorry, if they're still getting static, I apologize for that. Just maybe a quick follow-up from Nancy, just starting the first quarter at lower gross margins? (technical difficulty) Guide, that implies is color on where Vigen exit? Is that sort of elephant vertical integration (technical difficulty)

抱歉，如果它們仍然有靜電，我對此表示歉意。也許南希只是想快速跟進一下，第一季剛開始時毛利率較低嗎？（技術難題）導遊，那暗示Vigen出口在哪裡有顏色？那是大象垂直整合（技術難度）

So I think you're right, right. It will scale up as we go through the year and we'll have to exit the year close to mid-40s in order to hit the 200 basis point growth. And that is, as we mentioned, very much tied to Metro VI. as well as the growth of our VI. in general. So we should expect to be in the 60s in 2024 in order to and hit that 200 basis point improvement.

所以我認為你是對的，對。隨著時間的流逝，這個數字將會不斷擴大，到今年年底，我們必須達到 40% 左右的成長率，才能達到 200 個基點的成長。正如我們所提到的，這與 Metro VI 以及我們 VI 的整體成長密切相關。因此，我們預計 2024 年利率將達到 60 多個百分點，從而實現 200 個基點的改善。

Ruben Roy, Stifel.

魯本·羅伊（Ruben Roy），Stifel。

Hey, David, I had a question on the 800 gig. Congrats on the first of I'm sure many multiple wins there. How are you thinking about that from and sort of the perspective of the rest of the business, meaning is that incremental or do you expect that to impact your systems business? I mean, any color there for 2025?

嘿，大衛，我對 800 演出有一個疑問。恭喜您第一次獲勝，我相信您還會多次獲勝。從其他業務的角度來看，您如何看待這個問題？這意味著這是一個漸進的過程，還是您預期它會影響您的系統業務？我的意思是，2025 年會有什麼顏色嗎？

The good news is the penetration of that in terms of the dollar value on one, the growth rates we see are pretty tremendous, again driven by AI and ML with the web scalers that we're currently in front of for 800 gig.

好消息是，就美元價值而言，我們看到的成長率是相當驚人的，這再次受到人工智慧和機器學習的推動，以及我們目前在 800 千兆位元網路擴展器方面的推動。

And we don't expect this to be the last that this is the first and very, very large Second is we weren't in a lot of these potential spend for the web scalers. So this is kind of net new for us for the business. So it really doesn't cannibalize anything we've had. Did I get that right, Ron?

我們不認為這是最後一次，這是第一次，而且規模非常大。其次，我們沒有在網路擴展器上投入太多的潛在資金。所以這對我們的業務來說是一種全新的體驗。所以它實際上不會蠶食我們已經擁有的任何東西。我說得對嗎，榮恩？

Yeah, I agree.

是的，我同意。

Great. Okay. Thank you, guys. Appreciate the detail. And then (multiple speakers)

偉大的。好的。謝謝你們。欣賞細節。進而（多位發言者）

Just to be clear, Ron would have disagreed to see if the decision is not just saying that.

需要明確的是，如果這個決定不只是說說而已，榮恩會不同意。

Yes, excellent. Okay. So either for you or Ron or Dave, you did mention a little bit about the 400 gig and the cable for Amazon, et cetera. But just in terms of how we should think about, you know, the rents of 800 versus 400 seems like 800 could be sort of faster ramps, bigger ramps versus longer tail longer cycle performer. I gave you my thinking about that, right?

是的，非常好。好的。所以無論是您、羅恩還是戴夫，您確實提到了一些有關 400 千兆和亞馬遜電纜等的資訊。但就我們應該如何思考而言，你知道，800 與 400 的租金似乎 800 可能是更快的坡道，更大的坡道與更長的尾部更長的周期表演者。我把我的想法告訴你了，對吧？

You are.

你是。

So I think 800 Cotco buying buying and huge lost huge chunks, a defined product defined application because of ZR ZR plus the 400 gig one will consume it and continue to increase our consumption year over year in the metro for our own products.

因此，我認為 800 個 Cotco 買入並大量損失，由於 ZR ZR 加上 400 千兆的明確產品明確應用將消耗它，並將繼續逐年增加我們在地鐵中對我們自己產品的消耗。

And then for these applications, again, I mentioned we're certifying with the North American cable, but we're also certifying with another global Tier 1 for an application look because it's software defined that ties into their network operations.

對於這些應用程序，我再次提到我們正在通過北美電纜進行認證，但我們也在通過另一個全球一級供應商進行應用程式認證，因為它是軟體定義的，與他們的網路運營相關。

They just take a little bit longer, but I think you'll see a very long life cycle for that given the differentiation and the fact that, as Ron says, it's a three-legged stool, drive lower cost per bit, drive lower power per bit and drive the Agility up. And that 400 gig pluggable allows you to move in 25 gig increments only power, which you what you need. And that's why we won some green awards, for example, in Europe with that product on. So yes, longer lifecycle. Sorry.

它們只是需要更長的時間，但我認為，考慮到差異化以及羅恩所說的三條腿凳子這一事實，你會看到它的生命週期非常長，降低每位成本，降低每位功耗，提高敏捷性。並且 400 千兆可插拔功能可讓您以 25 千兆的增量行動電源，這正是您所需要的。這就是為什麼我們憑藉該產品贏得了一些綠色獎項，例如在歐洲。所以是的，生命週期更長。對不起。

Understood. Thank you, David. Thanks.

明白了。謝謝你，大衛。謝謝。

Christian Schwab, Craig-Hallum Capital.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本。

Thanks for taking my question. Given the headwinds that we're seeing structurally in the industry this year, but the big design wins in hyperscale that we've talked about and further to come. I know it's only March of '24, but the strength that you are talking about in '25 and you should be able to grow the top line double digit plus and Calendar '25, right was perfect set.

感謝您回答我的問題。鑑於我們今年在行業中看到的結構性阻力，但我們已經討論過的超大規模和未來將取得重大設計勝利。我知道現在只是 24 年 3 月，但您所說的 25 年的實力以及您應該能夠實現兩位數以上的營收成長，而 25 年曆是完美的設定。

That was a trap Well said, well said, well, look, certainly these are very, very large opportunities. You're right, it's March of 2024. I'd be silly to give 2025 guidance, but I think what we said prior is past this inventory digestion period, we're going to continue to put our heads down and get design wins, continue to drive margin improvement and EPS expansion.

那是一個陷阱。說得好，說得好，好吧，看，這些肯定是非常非常大的機會。你說得對，現在是 2024 年 3 月。給出 2025 年的指導是愚蠢的，但我認為我們之前說過的是，過了這個庫存消化期，我們將繼續埋頭苦幹，獲得設計勝利，繼續推動利潤率的提高和每股收益的擴大。

And if you remember our Analyst Day, we talked about, we think steady state in the business once you get through these externalities that 8% to 12% or 8% to 12% was the kind of growth rate. We said this gives us great comfort, both in that and as well as in our business model from a financial perspective in terms of margin and EPS. But I'm not getting to a number for '25.

如果你還記得我們的分析師日，我們談過，我們認為一旦克服這些外部因素，業務就會處於穩定狀態，成長率在 8% 到 12% 之間。我們說這給了我們很大的安慰，無論是從利潤率和每股盈餘的財務角度來看，還是從我們的商業模式來看。但我沒有得到 25 年的具體數字。

Yes, no, understood. Thank you for that. And then my last question is we've all been kind of waiting for a CHIPS Act money to be released. Do you have an update of where you think you're positioned in that process?

是的，不，明白了。謝謝你。我的最後一個問題是，我們都在等待《CHIPS 法案》資金的發放。您是否對自己在過程中所處的位置有了更新？

And here's what I'd tell you, you know, again, I think we've been very diligent over the last couple of years and are very well positioned, but we're not allowed by actual rules of the CHIPS Act to give a status on where we're at there, what I'm confident as we are an excellent fit for the CHIPS Act and then as they go to push awards out. That should be something we see in the in the '25 timeframe as well. In terms of the impact to the business, if we are to be awarded.

我想告訴你的是，你知道，我認為我們在過去幾年裡一直非常勤奮，並且處於非常有利的位置，但《CHIPS 法案》的實際規則不允許我們說明我們所處的位置，我相信我們非常適合《CHIPS 法案》，然後他們會繼續頒發獎項。我們在 25 年的時間範圍內也應該會看到這種情況。就對業務的影響而言，如果我們要獲得獎勵。

Great. Thanks for taking my questions. Thank you.

偉大的。感謝您回答我的問題。謝謝。

Alex Henderson, Needham & Company.

亞歷克斯·亨德森（Alex Henderson），Needham & Company。

Beginning with the second one up there. Yes. Thank you, and thanks for letting me in. I was hoping we could go back to this contract that you've got. It's hyperscaler three years out to $100 million annual run rate. I would think the initial shipments first year that would be fairly low and then it would ramp probably say $50 million and then hit that $100 million, is that kind of the cadence of that ramp for $25 million, $50 million to a $100 million?

從上面的第二個開始。是的。謝謝你，謝謝你讓我進來。我希望我們能夠回到你現有的合約上。三年內，其年運行率將達 1 億美元。我認為第一年的初始出貨量會相當低，然後可能會增加到 5,000 萬美元，然後達到 1 億美元，這是從 2,500 萬美元、5,000 萬美元到 1 億美元的成長節奏嗎？

Now that I have done, what we said in the prepared remarks was the three year contract is worth hundreds of millions of dollars. So we believe it will start shipping in 2025. Yes, with this particular customer and yes, get more intense in '26, '27 and the beginning of '28, and then we'll be on the new with that particular customer. Would you go from the 800 gig pluggable to potentially a 1.6 T. and pluggable from national IT. So the number is much larger.

現在我已經說完了，我們在準備好的發言中說的是，這份三年合約價值數億美元。因此我們相信它將於 2025 年開始發貨。是的，對於這個特定的客戶，是的，在 26 年、27 年和 28 年初我們會變得更加緊密，然後我們會與這個特定的客戶進行新的合作。您是否會從 800 千兆可插拔升級到潛在的 1.6 T. 並從國家 IT 中插拔？所以這個數字要大很多。

So it's a larger than $25 million, $50 million?

那麼這個數字比 2500 萬美元或 5000 萬美元還大嗎？

Yes, it's hundreds of millions. It's yes, it's hundreds of millions over a three-year period, not like a one or two or a I don't want to get too specific on, but where it's the largest that we've bought, but we've seen.

是的，有數億。是的，三年內投資了數億美元，不是一兩億美元，或者我不想說得太具體，但這是我們購買過的最大一筆，也是我們所見過的最大一筆。

Just to be clear, is that all pluggables, is there are additions sales associated with that, or is that is it more narrow than that?

只是為了清楚起見，這是否都是可插入的，是否有與之相關的附加銷售，或者是否比這更狹窄？

So, you know, with a lot of these deals. What I think you will see with a lot of deals in the future, as you will see us get a pluggable win for the pluggable and then we will have to compete independently for the the platform that that goes in the GX platform in-line system that that goes in.

所以，你知道，有很多這樣的交易。我認為您將在未來的許多交易中看到，您將看到我們在可插拔領域獲得勝利，然後我們將必須獨立競爭 GX 平台直列系統中的平台。

So in many cases, you know, we have the opportunity to not only win the pluggable, but also win the platform that that goes. And so there has that that doesn't even count that dollar impact. Yes, Ron, anything to add there.

因此，在許多情況下，我們不僅有機會贏得可插拔產品，還有機會贏得相應的平台。因此這甚至還沒有計算美元的影響。是的，羅恩，還有什麼要補充的嗎？

One thing I would add is that it's it's extremely compelling for them to ramp this quickly because it is significant improvement in cost per gallon power per bit for their network.

我想補充一點，對他們來說，快速提升這一速度是非常有吸引力的，因為這將顯著改善他們網路每加侖電力每比特的成本。

So the other question I had for you is the you mentioned the managed the optics lines that you're growing. You're winning in some service providers, particularly in the can you talk a little bit about the mechanics and the economics of that type of transaction where you're actually in line with it?

所以我想問您的另一個問題是，您提到了管理您正在發展的光學生產線。您在一些服務提供者中取得了成功，特別是在您實際上與之相符的此類交易的機制和經濟性方面，您能否稍微談一下？

Yes, Ron, you want to take that?

是的，羅恩，你想接受這個嗎？

Give to referring to managed optical fiber networks. And these are effectively opportunities where we work with the end customer, who's a hyperscaler and the service provider who's providing the actual service. And then we agree on a a bespoke network for them to consume or into use all in their own for their own specific application in that in that particular country.

供參考可管理的光纖網路。這些都是我們與最終客戶（超大規模企業）和提供實際服務的服務提供者合作的有效機會。然後，我們同意為他們量身定制一個網絡，供他們在特定國家/地區自行消費或使用，以滿足他們自己的特定應用需求。

And from a economic perspective, it's very much like any other service provider win where there's a line system component or services on push transponders or pluggables depending on the application. And it looks very similar to any big Tier 1 service provider wins.

從經濟角度來看，它與任何其他服務提供者的勝利非常相似，其中根據應用，存在線路系統組件或推送應答器或可插拔設備上的服務。這看起來與任何大型一級服務提供者的勝利非常相似。

It's not a high management maintenance contract piece.

這不是一份高階管理維護合約。

It's just classic classic systems like the maintenance contract and the good news is we see the end demand because we're working with the web scalers. So they typically tend to build them bigger because they're looking to interconnect to data centers and terrestrial networks.

這只是經典的經典系統，例如維護合同，好消息是我們看到了最終需求，因為我們正在與網路擴展器合作。因此，他們通常傾向於建立更大的網絡，因為他們希望與資料中心和地面網路互連。

Right. Got it. Thanks.

正確的。知道了。謝謝。

Thanks, Alex.

謝謝，亞歷克斯。

And that concludes our question and answer period. I will now turn it back to Chief Executive Officer, David Heard closing remarks.

我們的問答環節到此結束。現在我將把話題交還給執行長戴維赫德 (David Heard) 作最後發言。

Thank you. 2023 was another great year for us. We delivered on our commitments that we made during our Analyst Day in, I would say, what is a pretty rough landscape through Q4 of 2023. And we have met or exceeded our outlook in 15 out of the last 16 quarters. Our portfolio is in the best shape. It's been we're winning new customers globally with less than 25% of our products from legacy systems.

謝謝。 2023 年對我們來說又是偉大的一年。我們兌現了在分析師日上所做的承諾，我想說，2023 年第四季的情況相當艱難。在過去 16 個季度中，有 15 個季度我們都達到或超越了預期。我們的投資組合處於最佳狀態。我們在全球範圍內贏得新客戶，而來自傳統系統的產品不到 25%。

I mean that's a dramatic shift from where we were three, four years ago, while the front half of the year start starting off a bit sluggish, which we called out last year. As this inventory burns out, we are winning some major design wins in both systems and subsystems of build our confidence, confidence and confidence in the back half recovery and our ability to grow revenue, expand share and increase margins and EPS.

我的意思是，這與三四年前相比發生了巨大的變化，而今年上半年開始有些低迷，就像我們去年所說的那樣。隨著庫存的消耗，我們在系統和子系統方面贏得了一些重大的設計勝利，增強了我們對下半年復甦的信心、信心和信心，以及增加收入、擴大份額、提高利潤率和每股收益的能力。

So we appreciate the support of our customers, employees and shareholders. We're now going to get back to work and continue executing a very sound investment strategy and focus on continued EPS expansion. Thank you all and have a nice afternoon or evening.

因此，我們感謝客戶、員工和股東的支持。我們現在將重新開始工作，繼續執行非常合理的投資策略，並專注於持續的每股盈餘擴張。謝謝大家，祝大家下午或晚上愉快。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。