Infinera Corp (INFN) 0 Q0 法說會逐字稿

Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Infinera Corporation first quarter earnings conference call. (Operator Instructions) Thank you. I will now turn the conference over to Amitabh Passi, Head of Investor Relations. You may begin your conference.

謝謝你的支持。我叫克里斯塔，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加英飛朗公司第一季財報電話會議。 （操作員說明）謝謝。我現在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, operator, good afternoon. Welcome to the call. We will discuss the preliminary financial results for Infinera's first quarter of fiscal 2024. A copy of the press release issued by Infinera today is available on the Investor Relations section of the website. This call is being recorded and will be available for replay from our website.

謝謝接線員，下午好。歡迎來電。我們將討論英飛朗 2024 財年第一季的初步財務業績。本次通話正在錄音中，可在我們的網站上重播。

Today's call will include financial commentary and metrics based on our preliminary first quarter of fiscal 2024 results. Yesterday, we announced that we currently expect to file our quarterly report on Form 10-Q for the first fiscal quarter, fiscal 2024 on or before May 21, 2024. As a result, and notwithstanding anything to the contrary said during the call, all financial results discussed today are preliminary and are subject to change and are based on management's current expectations as of the date of this conference call.

今天的電話會議將包括基於我們 2024 財年第一季初步業績的財務評論和指標。昨天，我們宣布，目前預計將在 2024 年 5 月 21 日或之前提交 2024 財年第一財季的 10-Q 表格季度報告。財務表現是初步的，可能會發生變化，並且基於管理層截至本次電話會議之日的當前預期。

Final results will be included in the Form 10-Q. In addition, 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 second quarter of 2024.

最終結果將包含在表格 10-Q 中。此外，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事項相關的陳述以及公司今天發布的 8-K 表格中的當前報告以及我們的財務前景2024 年第二季。

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 December 31, 2022 filed with the SEC on February 27, 2023, and amended February 29, 2024, and its quarterly report on Form 10-Q for the quarter ended September 30, 2023, 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 提交並於2024 年2 月29 日修訂的截至2022 年12 月31 日年度的10-K 表格年度報告中列出的風險因素，及其於 2024 年 2 月 29 日向 SEC 提交的截至 2023 年 9 月 30 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。

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

請注意，所有聲明均截至今天，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 except for revenue, balance sheet items and cash flow from operations, which are discussed on a GAAP basis. Pursuant to Regulation G, we provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our preliminary earnings release, 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原則財務指標，但收入、資產負債表項目和營運現金流除外，這些指標是根據公認會計原則討論的。根據 G 條例，我們在初步收益發布中提供了這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的調整表，該發布可在我們網站的投資者關係部分取得。

And finally, as a reminder, will allow for plenty of time for Q&A today, but we ask that you limit yourselves to one question and one follow-up please. And I'll turn the call over to our Chief Executive Officer, David Heard. David ?

最後，提醒一下，今天將有足夠的時間進行問答，但我們要求您將自己限制在一個問題和一個後續行動上。我會將電話轉給我們的執行長戴維·赫德 (David Heard)。大衛 ？

Thanks Amitabh. Good afternoon and thanks for joining us today. I'll begin with the highlights for the first quarter results and then turn the call over to Nancy to cover the financial details of the first quarter and the outlook for the second quarter.

謝謝阿彌陀佛。下午好，感謝您今天加入我們。我將首先介紹第一季業績的重點，然後將電話轉給南希，介紹第一季的財務細節和第二季的前景。

The first quarter was much like a tale of two cities for us. On one hand, bookings were strong and unplanned and up year over year. Strategic deal momentum was unprecedented as we won new network decisions potentially representing over $1 billion in cumulative multiyear value across some very strategic accounts for us.

第一季對我們來說就像是兩個城市的故事。一方面，預訂量強勁且無計劃，並且逐​​年上升。戰略交易的勢頭是前所未有的，因為我們贏得了新的網路決策，這些決策可能代表我們一些非常具有戰略意義的客戶的多年累積價值超過 10 億美元。

Margin and EPS were within our outlook range despite the large contribution from lower margin line systems, which are crucial for laying the groundwork for future high margin fill. Cash flow generation was healthy with free cash flow of $16 million in the quarter, continuing the positive trend from the fourth quarter of 2023, where we generated $58 million in free cash flow.

儘管較低的利潤線系統做出了巨大貢獻，但利潤率和每股收益仍在我們的展望範圍內，這對於為未來的高利潤率奠定基礎至關重要。現金流產生狀況良好，本季自由現金流為 1,600 萬美元，延續了 2023 年第四季以來的正面趨勢，當時我們產生了 5,800 萬美元的自由現金流。

We ended Q1 with $192 million in cash and cash equivalents with no amounts drawn against our $200 million plus ABL. And we released our Q4 2023 and full year 2023 financial results as you've hopefully seen by now. Overall, our Q4 results came in towards the upper end of our prior outlook range. For the full year of 2023, we delivered our sixth consecutive year of revenue growth, gross margin of approximately 40% and earnings per share growth of 92% compared to 2022.

第一季末，我們擁有 1.92 億美元的現金和現金等價物，沒有從我們的 2 億美元加上 ABL 中提取任何金額。我們發布了 2023 年第四季和 2023 年全年財務業績，希望您現在已經看到了。整體而言，我們第四季的業績接近我們先前展望範圍的上限。 2023 年全年，與 2022 年相比，我們實現了連續第六年的營收成長，毛利率約 40%，每股盈餘成長 92%。

With respect to our quarterly close process, we plan to get back on normal cadence after we file our first quarter Form 10-Q, which is expected to occur in the next week. Despite this progress however, our quarterly revenues came in 4% below the low end of our outlook range and declined 22% on a year-over-year basis.

關於我們的季度結算流程，我們計劃在提交第一季 10-Q 表格後恢復正常節奏，預計下週進行。然而，儘管取得了這一進展，我們的季度收入仍比我們的預期範圍低端低 4%，並且同比下降 22%。

Compared to revenue declines already reported in the industry up 30% to 50% in Q1 by many of our optical peers. Our revenue shortfall in the quarter was due to a slower release of book-ship orders to the tune of approximately $25 million. In addition to the push-out of shipments from the first half of the year to the second half of the year. We believe these market dynamics will continue through the second quarter before business conditions start to normalize in the back half of the year, enabling us to get back to year-over-year growth in the second half.

與我們許多光學同行報告的行業第一季收入下降 30% 至 50% 相比。我們本季的收入短缺是由於約 2500 萬美元的圖書訂單發放速度較慢所致。除了上半年出貨量推向下半年外。我們相信，這些市場動態將持續到第二季​​度，然後下半年業務狀況開始正常化，使我們能夠在下半年恢復年成長。

The positive news I mentioned earlier, is that we continued to win groundbreaking awards in the quarter with some notable customer logos that are expected to have a significant impact on the future trajectory of the company.

我之前提到的正面消息是，我們在本季繼續贏得突破性獎項，其中一些著名的客戶標誌預計將對公司的未來發展軌跡產生重大影響。

Our open optical road map aligns well with our customers' need for open and agile architectures that deliver the lowest cost per bit, the lowest power per bit while improving operational efficiencies. Our recent wins reinforce our ability to help customers keep pace with the accelerating traffic demand, support the build-out of deep fiber networks and efficiently manage evolving data center capacity needs, but especially with new applications like artificial intelligence.

我們的開放光學路線圖非常符合客戶對開放和敏捷架構的需求，這些架構可提供最低的每位元成本、最低的每位元功耗，同時提高營運效率。我們最近的勝利增強了我們幫助客戶跟上不斷增長的流量需求的能力，支援深度光纖網路的建設，並有效管理不斷變化的資料中心容量需求，尤其是人工智慧等新應用程式。

As a result, we remain laser focused on our priorities, which are to grow and take market share in the $11 billion plus systems market. Ramp our business in the growing $5 billion market for coherent pluggables and leverage our vertical integration capabilities to break into the high volume to billion-dollar intra-data center segment driven from the optical payloads of AI.

因此，我們仍然專注於我們的優先事項，即在 110 億美元以上的系統市場中發展並佔據市場份額。在不斷成長的 50 億美元相干可插拔市場中擴大我們的業務，並利用我們的垂直整​​合能力打入由 AI 光學有效負載驅動的大容量至數十億美元的資料中心內細分市場。

The addition of pluggables and intra-data center products onto our systems portfolio allows the maximum leverage of our US-based fab as we drive significantly higher volumes through it. In fact, annual PIC volumes associated with embedded solutions that are sold as part of our optical systems business tend to be in the tens of thousands of units.

在我們的系統產品組合中添加可插拔和資料中心內產品，可以最大程度地利用我們位於美國的工廠，因為我們透過該工廠大幅提高了產量。事實上，作為我們光學系統業務的一部分銷售的與嵌入式解決方案相關的 PIC 年銷售量往往達到數萬台。

Pluggables volumes are expected to scale to hundreds of thousands of units, and we expect intra-data center volumes to scale into millions of units annually. We believe that dramatic increase in unit volume will drive a tremendous cost advantage across our portfolio in the future.

可插拔設備數量預計將擴大到數十萬個單位，我們預計資料中心內的數量每年將擴大到數百萬個單位。我們相信，單位產量的大幅增加將在未來為我們的產品組合帶來巨大的成本優勢。

A critical factor in the realization of our long-term business model, our US-based fab and advanced semiconductor packaging center also provides the added benefit of enhanced supply chain security and resiliency, which is increasingly important to our customers in the US and abroad.

我們位於美國的晶圓廠和先進半導體封裝中心是實現我們長期業務模式的關鍵因素，它還提供了增強供應鏈安全性和彈性的額外好處，這對於我們在美國和海外的客戶來說越來越重要。

Let me dive further into the specifics of the recent strategic wins and the progress to date in Q2, beginning first with the systems business. First, we continued the momentum with hyperscalers and our GX portfolio, including our next-generation open line systems. During the quarter, we won a new GXI seven based subsea deal with a major hyperscaler potentially worth $100 million to $200 million over three years, and we secured a major design win with our GX open line system potentially worth $200 million to $300 million over three years.

讓我進一步深入探討最近戰略勝利的細節以及第二季度迄今為止的進展，首先從系統業務開始。首先，我們繼續保持超大規模和 GX 產品組合的發展勢頭，包括我們的下一代開放式系統。在本季度，我們贏得了與大型超大規模提供商的新GXI 7 海底交易，三年內價值可能達到1 億至2 億美元，並且我們的GX 開放線路系統贏得了一項重大設計勝利，三年內價值可能達2 億至3 億美元年。

In addition, we onboarded another hyperscaler with our ICE-X solution and secure GX Metro, an open line system win with a Tier two content provider. Second, influenced by the traffic demands of hyperscalers, we continue winning managed optical fiber networks or mostly deals in India, the Middle East, Africa, and Asia with at least three new customers in Q1 supporting multiple hyperscalers. These land and expand opportunities start out small, but with the expected growth in these regions, we expect them to become a more significant portion of our revenue in the future.

此外，我們也利用 ICE-X 解決方案和安全的 GX Metro 搭載了另一家超大規模企業，這是一個與二級內容提供者合作的開放線路系統。其次，受超大規模企業流量需求的影響，我們繼續贏得託管光纖網路或主要在印度、中東、非洲和亞洲的交易，第一季至少有三個新客戶支援多個超大規模企業。這些土地和擴張機會一開始規模很小，但隨著這些地區的預期成長，我們預期它們將成為我們未來收入的更重要部分。

As a reminder, for the full year of 2023 we estimate that our direct and indirect exposure to hyperscalers approach 50% of our product revenue. And third, we secured major wins with our GX systems portfolio with an international wholesale provider in Europe and a major service provider in the US. We continue to see bandwidth and connectivity needs increasing across our target markets, including increased marketing of 400 gig capacity services by carriers.

提醒一下，我們估計 2023 年全年我們對超大規模企業的直接和間接敞口接近我們產品收入的 50%。第三，我們透過 GX 系統產品組合與歐洲的國際批發供應商和美國的一家主要服務供應商取得了重大勝利。我們持續看到目標市場的頻寬和連線需求不斷增加，包括營運商加大了 400 GB 容量服務的行銷。

We also anticipate initial orders from a design win at a major US service provider customer this quarter as they continued to upgrade their metro networks while pushing to capture higher bandwidth service revenues. These orders would begin shipping in the second half of the year and into 2025.

我們也預計本季美國主要服務供應商客戶將獲得設計訂單，因為他們將繼續升級其城域網絡，同時努力獲取更高的頻寬服務收入。這些訂單將於今年下半年開始出貨，直至 2025 年。

Shifting to our pluggable solutions. as you are aware by now, we landed a sizable 800 gig ZR and ZR plus win with a major hyperscaler in Q1. Since we are under strict NDA, we eliminate that what we can say about the specifics of this contract, but we estimate the opportunity to generate between $300 million to $700 million in revenues for us over three years, beginning in the second half of 2025.

轉向我們的可插拔解決方案。正如您現在所知，我們在第一季與一家主要的超大規模提供者一起贏得了 800 場 ZR 和 ZR plus 的勝利。由於我們處於嚴格的保密協議之下，因此我們無法透露有關該合約的具體細節，但我們估計從 2025 年下半年開始的三年內有機會為我們創造 3 億至 7 億美元的收入。

I am also excited to announce that we received our first orders for our 400 gig pluggables from a major US cable MSO this quarter. While these initial orders are of a relatively small size. We are excited about the potential ramp of this customer to a $300 million to $400 million opportunity over three years as we address important use cases in the customer's network across both the consumer and enterprise service offerings.

我還很高興地宣布，本季度我們收到了美國一家主要有線 MSO 的第一批 400 兆可插拔設備訂單。雖然這些初始訂單規模相對較小。我們很高興看到該客戶在三年內可能獲得 3 億至 4 億美元的機會，因為我們解決了客戶網路中跨消費者和企業服務產品的重要用例。

Finally, turning to the latest edition of our portfolio, we launched our IC intra-data center solutions ahead of the OFT show in March. These solutions, which leverage our core competency in indium phosphide PIC and our US-based optical semiconductor fab in California have the potential to reduce power per bit by as much as 75% for AI centric applications.

最後，轉向我們最新版本的產品組合，我們在 3 月的 OFT 展會之前推出了 IC 資料中心內解決方案。這些解決方案利用了我們在磷化銦 PIC 方面的核心競爭力以及我們位於美國加州的光學半導體工廠，有可能為以 AI 為中心的應用降低高達 75% 的每位功耗。

The elegance of our offering is that it is agnostic to data center architectures and will serve linear pluggable optics three times and have climbed optics. We have test kits available now are deeply engaged with ecosystem partners and our working towards landing our leading customer in the second half of the year that could drive significant volume through our fab.

我們產品的優點在於，它與資料中心架構無關，並將為線性可插拔光學元件提供三次服務，並具有爬升光學元件。我們現在擁有可用的測試套件，與生態系統合作夥伴深入合作，我們致力於在今年下半年吸引我們的主要客戶，這可能會帶動我們晶圓廠的大量產量。

As you can see, the momentum we have in our business sets us up well for 2025 and beyond. As evidenced by our OSC show, we are winning business, mind share and trust from our customers, suppliers, and partners. We also believe we remain well positioned for the CHIPS Act funding. In fact, I'm taking this call today from Washington D.C.

正如您所看到的，我們的業務動能為我們 2025 年及以後的發展奠定了良好的基礎。正如我們的 OSC 展會所證明的那樣，我們正在贏得客戶、供應商和合作夥伴的業務、思想分享和信任。我們也相信，我們在 CHIPS 法案的資助方面仍處於有利地位。事實上，我今天是從華盛頓特區接到這個電話的。

As most of the CHIPS Act awards for larger companies have been announced, we expect smaller companies to begin receiving awards in the third and fourth quarter of this year. While the long-term prospects are encouraging, the short-term macro and industry dynamics are more challenging than our expectations coming into the year. We continue to expect a slow first half with trends improving in the back half as we focus on getting to delivering year-over-year growth in the second half.

由於大多數針對大型公司的 CHIPS 法案獎項已經公佈，我們預計小型公司將在今年第三和第四季開始獲得獎項。雖然長期前景令人鼓舞，但短期宏觀和產業動態比我們今年的預期更具挑戰性。我們仍然預計上半年將放緩，下半年趨勢將有所改善，因為我們專注於下半年實現同比增長。

As a result for the full year, we now expect our revenues to be down 1% to 5% compared to 2023. Nancy will walk through the details shortly.

因此，我們現在預計全年收入將比 2023 年下降 1% 到 5%。

As for the overall optical systems market, I expect the market to be significantly down in the first half and up in the second half of the year, resulting in an overall decline of 7% to 8% for the year. But as we head into 2025, I expect the overall market to normalize and start the next cycle of optical growth driven by fiber to the curve, massive data center build-outs, AI, and global growth in bandwidth demand.

至於整個光學系統市場，我預期上半年市場會大幅下降，下半年會上升，導致全年整體下降7%至8%。但隨著我們進入 2025 年，我預計整個市場將正常化，並開始下一個由光纖到曲線、大規模資料中心擴建、人工智慧和全球頻寬需求成長驅動的光學成長週期。

Against this backdrop, we will focus on taking our fair share of design wins and new deals. Several of which ramp in the second half of the year and into 2025, deploy what is expected to be a record number of next-generation line systems across new routes, which will drive future higher-margin transponder sales continue our investment in R&D for systems and pluggables, while increasing investments on ISD drive down discretionary spending to keep overall OpEx flat to down 3% for the year.

在此背景下，我們將專注於在設計勝利和新交易中獲得公平的份額。其中一些將在今年下半年和 2025 年期間逐步增加，在新航線上部署預計數量將創紀錄的下一代線路系統，這將推動未來更高利潤的應答器銷售，繼續我們對系統研發的投資和可插拔設備，同時增加對ISD 的投資減少了可自由支配支出，使今年整體營運支出保持平穩，下降3%。

Given the size and scale of our recent wins, the competitiveness of our portfolio and the strength of our long-term secular drivers underpinning our business, we believe we can return to our target growth rate of 8% to 12% in 2025, depending on where we end up for 2024. This should result in our earnings per share getting back in the range of $0.4 to $0.5 next year.

考慮到我們最近取得的勝利的規模和規模、我們投資組合的競爭力以及支撐我們業務的長期長期驅動因素的實力，我們相信我們可以在2025 年恢復到8% 至12% 的目標增長率，具體取決於我們的目標是 2024 年。

As I close today, I'd like to reiterate our recent strategic RFP wins and contracts along with the size and scale of our opportunity funnel, give me confidence in our ultimate recovery of the business as we head into 2025 and beyond. The near-term environment is difficult, but I see no change in the long-term drivers of the business and the increasing importance of scale and vertical integration in the industry.

在今天結束時，我想重申我們最近贏得的戰略 RFP 和合同，以及我們機會漏斗的規模和規模，讓我對進入 2025 年及以後業務的最終復甦充滿信心。短期環境很困難，但我認為業務的長期驅動因素沒有變化，而且產業規模和垂直整合的重要性日益增加。

I'd like to thank the Infinera team for their unwavering commitment to innovation that matters, execution, our customers and to 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 remain well positioned for the long term.

我要感謝英飛朗團隊對創新、執行、客戶以及彼此之間的堅定承諾。我還要感謝我們的合作夥伴、客戶和股東的持續支持。我對我們的戰略地位感覺非常好，我相信從長遠來看，我們仍然處於有利地位。

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

現在我將把電話轉交給南希，介紹本季的財務細節和我們的前景。南希？

Thanks, David. Good afternoon, everyone. I will begin by covering our first quarter results and then provide the outlook for the second quarter. As you heard from David, business trends in the first quarter were a bit of a paradox for us. On the one hand, bookings were in line with our expectations, while design-win momentum was unprecedented and the strongest the company has ever seen.

謝謝，大衛。大家下午好。我將首先介紹我們第一季的業績，然後提供第二季的前景。正如您從大衛那裡聽到的，第一季的業務趨勢對我們來說有點矛盾。一方面，預訂量符合我們的預期，而設計獲勝的勢頭是前所未有的，也是公司有史以來最強勁的勢頭。

On the other hand, quarterly revenue of $307 million came in 4% below our outlook range and was down 22% on a year-over-year basis compared to the 30% to 50% decline reported by many of our peers. As evident from these industry trends, it's been a tough start to the year in the industry. Our Q1 revenue decline was primarily attributable to lower volumes in the US across both our major service provider and ICP customers.

另一方面，季度營收為 3.07 億美元，比我們的預期範圍低 4%，年減 22%，而許多同業報告的降幅為 30% 至 50%。從這些產業趨勢可以明顯看出，今年該產業的開局並不順利。我們第一季營收下降的主要原因是我們的主要服務供應商和 ICP 客戶在美國的銷售下降。

It is the slower release of book-ship order and project pushouts as an overall cautious spending posture from our customers. Geographically, we derived approximately 54% of our Q1 revenue from domestic customers, a lower percentage than the trend of the past two quarters.

這是因為我們的客戶總體上採取了謹慎的支出態度，因此圖書發貨訂單和項目推出的釋放速度較慢。從地理上看，我們第一季營收的約 54% 來自國內客戶，這一比例低於過去兩季的趨勢。

Q1 gross margin of 36.6% was just below the midpoint of our outlook range and decreased 220 basis points year over year. Compared to the prior year, the primary driver of the lower gross margin in the quarter with the higher contribution of wind system to product mix and secondarily, the impact of fixed cost under absorption from lower revenue and volumes.

第一季毛利率為 36.6%，略低於我們展望範圍的中點，較去年同期下降 220 個基點。與前一年相比，本季毛利率較低的主要原因是風電系統對產品組合的貢獻較高，其次是收入和產量下降所吸收的固定成本的影響。

While overall company revenue declined in Q1 line, system revenue was up approximately 20% compared to the year ago quarter, setting us up well for future transponder deployments.

雖然第一季公司整體收入有所下降，但係統收入與去年同期相比增長了約 20%，這為我們未來的應答器部署奠定了良好的基礎。

Operating loss in the quarter was $25.9 million with an operating margin of negative 8.4% which was at the lower end of our outlook range and impacted by lower revenue, lower gross margin and product mix. Operating expenses of $138 million in Q1 were flat year over year and below our outlook range of $143 million to $147 million. We had a continued cost discipline while we managed our investments for growth. The resulting diluted EPS was a loss of $0.17 compared to earnings $0.02 in the year-ago quarter.

本季營運虧損為 2,590 萬美元，營運利潤率為負 8.4%，處於我們展望範圍的下限，並受到收入下降、毛利率下降和產品組合的影響。第一季營運支出為 1.38 億美元，與去年同期持平，低於我們 1.43 億至 1.47 億美元的預期範圍。我們在管理投資以實現成長的同時，始終堅持成本紀律。由此產生的攤薄每股收益為虧損 0.17 美元，去年同期獲利為 0.02 美元。

Moving on to the balance sheet and cash flow items. We ended the quarter with $192 million in cash and cash equivalents with no amount drawn on our $200 million plus ABL. From a cash flow perspective, we generated $24 million in cash flow from operations and $16 million in free cash flow, continuing the positive trend from Q4 when we generated $58 million in free cash flow.

接下來是資產負債表和現金流量項目。本季結束時，我們的現金和現金等價物為 1.92 億美元，其中 2 億美元加上 ABL 沒有提取任何金額。從現金流角度來看，我們產生了 2,400 萬美元的營運現金流和 1,600 萬美元的自由現金流，延續了第四季的正面趨勢，當時我們產生了 5,800 萬美元的自由現金流。

Let me now turn to the outlook for the second quarter of 2024 and our expectations for the rest of the year. As you have heard this afternoon, the near-term operating environment remains very challenging across the industry as our customers continue to work down excess inventory and push out some projects.

現在讓我談談 2024 年第二季的展望以及我們對今年剩餘時間的預期。正如您今天下午所聽到的，隨著我們的客戶繼續減少過剩庫存並推出一些項目，整個行業的近期營運環境仍然非常具有挑戰性。

We expect business dynamics we experienced in Q1 to persist into Q2. And as a result, our contemplated outlook for the second quarter is revenue of $330 million, plus or minus $20 million, implying a year-over-year revenue decline of approximately 10% to 15%. Gross margin of 39.5% plus or minus 150 basis points, approximately flat on a year-over-year basis at the midpoint of the range.

我們預計第一季經歷的業務動態將持續到第二季​​。因此，我們預計第二季的營收為 3.3 億美元，上下浮動 2,000 萬美元，這意味著營收將年減約 10% 至 15%。毛利率為 39.5%，上下浮動 150 個基點，與去年同期基本持平，處於該範圍的中點。

Operating expenses of $138 million to $141 million, modestly up on a year-over-year basis, an operating loss of 3.5% plus or minus 300 basis points down on a year-over-year basis, primarily due to lower revenue.

營運費用為 1.38 億美元至 1.41 億美元，年比小幅成長，營運虧損為 3.5%，年減 300 個基點，主要是由於收入下降。

Below the operating income line, we assume $8 million for net interest expense and $4 million for taxes. Finally, we are anticipating a loss of $0.09 plus or minus $0.04 per share, assuming a basic share count have approximately 235 million shares and a fully diluted share count of profitable of approximately $264 million shares.

在營業收入線以下，我們假設淨利息支出為 800 萬美元，稅金為 400 萬美元。最後，假設基本股數約為 2.35 億股，完全稀釋後獲利股數約為 2.64 億股，我們預期每股虧損為 0.09 美元正負 0.04 美元。

We expect to utilize cash from operations in Q2, primarily for working capital and returns generating cash from operations over the second half of the year. I expect the first quarter to mark the low point for us in the year with a gradual improvement in our financials in Q2 and a more meaningful step up in the back half with revenue growth of about 8% to 10% compared to the second half of 2023.

我們預計第二季的營運現金將主要用於營運資金和下半年營運現金的回報。我預計第一季將標誌著我們今年的低點，第二季我們的財務狀況將逐步改善，下半年將出現更有意義的進步，與下半年相比，營收成長約 8% 至 10% 2023年。

For the full year, we now expect revenue to be down between 1% and 5% compared to 2023. While it is early to be talking about 2025, our longer-term planning framework assumes that industry dynamics normalize in 2025 and that we get back to our objective of 8% to 12% revenue growth, depending on where we end 2024.

對於全年，我們現在預計收入將比 2023 年下降 1% 到 5%。 雖然現在談論 2025 年還為時過早，但我們的長期規劃框架假設行業動態在 2025 年恢復正常，並且我們將恢復實現我們營收成長8% 至12% 的目標，取決於2024 年結束時的情況。

This growth rate in 2025 would serve as the foundation to get us back to the $0.4 to $0.5 EPS range next year, which obviously implies roughly a year shipped out in the realization of our dollar per share EPS objective. Despite these near-term consideration, our refreshed portfolio, customer momentum, design wins, contract signed, RFP activity and the size and quality of our opportunity funnel gives me a lot more confidence in the long-term trajectory of the business.

2025 年的成長率將為我們明年回到 0.4 美元至 0.5 美元的每股盈餘範圍奠定基礎，這顯然意味著大約需要一年時間才能實現我們每股盈餘目標。儘管有這些近期考慮，我們更新的產品組合、客戶動力、設計獲勝、合約簽署、RFP 活動以​​及我們機會漏斗的規模和品質讓我對業務的長期發展軌跡更有信心。

I would like to thank the Infinera team as well for their continued commitment to innovation and execution excellence 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卓越執行的持續承諾，以及我們的合作夥伴、客戶和股東的持續合作和支持。

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

接線員，我現在想開通提問線路。

Thank you. We will now begin the question and answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Samik Chatterjee, JPMorgan.

薩米克‧查特吉，摩根大通。

Hi. Thanks for taking my question. So maybe for the first one, I know you talked about the strong design activity that you had in 1Q. But in terms of those translating into orders, can you give us a bit more sense about what are you seeing in terms of order trends in the quarter related to either the gas carriers or telco service providers versus the cloud customers. Can you give us a bit more sense on that Thank you. And have a follow-up.

你好。感謝您提出我的問題。所以也許對於第一個，我知道您談到了第一季的強大設計活動。但就轉換為訂單而言，您能否讓我們更了解本季與天然氣業者或電信服務供應商相對於雲端客戶相關的訂單趨勢。您能給我們更多的了解嗎？並進行後續跟進。

Yes. Okay, as we mentioned in kind of past earnings calls, the ICPs, then they shop in bulk quantities that we had about $25 million of book ship orders that normally would have come. The overall booking profile was about to what we expected in terms of dollar value and was indeed above one, which isn't bragging given the revenue base, but there was about $25 million mostly ICP that pushed out into the back half of the year.

是的。好吧，正如我們在過去的財報電話會議中提到的那樣，ICP，然後他們大量購買，我們有大約 2500 萬美元的圖書發貨訂單，這些訂單通常會到達。整體預訂情況與我們對美元價值的預期一致，並且確實高於 1，考慮到收入基礎，這並不是吹牛，但大約有 2500 萬美元（主要是 ICP）被推到了今年下半年。

As well as we had some implementation of projects at some CSPs that also pushed into the back half of the year. We think this will continue into Q2. But based on the design wins and orders, we're pulling in, we expect that pattern to reverse a bit in the back half, and it's given us more credibility and confidence in our plan for 2025.

我們在一些 CSP 實施了一些項目，這些項目也推遲到了下半年。我們認為這種情況將持續到第二季​​。但根據設計勝利和訂單，我們正在努力，我們預計這種模式將在下半年有所扭轉，這讓我們對 2025 年的計劃更有可信度和信心。

Did that answer your question ?

這回答了你的問題嗎？

Yes, no. And maybe if I can move to gross margins, Nancy, curious, I mean you still have a strong gross margin expansion here from 1Q to 2Q and are we still sort of thinking if you can just walk us through that? And are we still thinking sort of mid 40s exiting the year? And maybe if you can clarify that. Thank you

是的，不是。也許如果我可以轉向毛利率，南希，我很好奇，我的意思是，從第一季度到第二季度，你們的毛利率仍然強勁增長，我們是否仍在考慮您是否可以引導我們完成這一點？我們還在考慮 40 歲左右的人會在今年退出嗎？也許如果你能澄清這一點的話。謝謝

Yes. So gross margin, certainly in Q1 was impacted by the number of wind systems that we deployed. We talked a little bit about this on our last call, but you can think about that as almost 200 basis point impact in gross margin from line systems and then about another $100 million from just the lower volume in terms of absorption of fixed costs.

是的。因此，第一季的毛利率肯定受到我們部署的風力系統數量的影響。我們在上次電話會議上對此進行了一些討論，但您可以將其視為線路系統毛利率的近200 個基點影響，然後就吸收固定成本而言，僅從較低的產量中再產生約1 億美元的影響。

As far as exiting the year, if we're down 1% to 5%, I would expect that margins are likely going to be still flat to slightly up with fiscal year '23, and it'll take us a little bit of time to get back into that mid-40s, which is still our target business model.

就今年結束而言，如果我們下降 1% 到 5%，我預計利潤率可能仍將與 23 財年持平或略有上升，這將需要我們一些時間回到40 多歲，這仍然是我們的目標商業模式。

Yes, thank you. Thanks for taking my question.

是的，謝謝。感謝您提出我的問題。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

Great. Thanks for taking the question here. It sounds to me, just looking at the full year guidance that you expect your September, December results to be very similar to what you had talked about in March and previously and I just wanted to sort of see what are the key drivers given the softness you saw this quarter and in your guide. What's sort of informing your confidence in is my arithmetic correct in thinking that you're really expecting the same second half of the year that you anticipated before ?

偉大的。感謝您在這裡提出問題。在我看來，只要看看全年指導，您預計 9 月、12 月的結果與您在 3 月和之前談到的結果非常相似，我只是想看看考慮到經濟疲軟的關鍵驅動因素是什麼您在本季度和指南中看到了。我的算術是否正確，表明您確實對今年下半年的情況與之前預期的情況相同，這表明您有信心嗎？

Amithab ?

阿米特布？

Yes I mean, I think you're right. The second half is contemplated to be very similar to the first half, sorry to our prior expectations. And I think David will cover this in more detail, but we did talk about projects being pushed out from the first half to the second half.

是的，我的意思是，我認為你是對的。下半場預計與上半場非常相似，這對我們之前的預期感到抱歉。我認為大衛會更詳細地介紹這一點，但我們確實討論了從上半年推遲到下半年的項目。

David talked about the slow release of book ship and the order of $25 million. We also mentioned that in last quarter's call. So part of I think what you see in the back half is an expectation that these projects that have been pushed out into timing come to fruition. But David, please go ahead.

David談到了圖書發售的緩慢以及2500萬美元的訂單。我們在上季的電話會議中也提到了這一點。因此，我認為您在後半部分看到的部分內容是期望這些已被推遲的項目能夠實現。但大衛，請繼續。

Yes, I think, Simon, what we are doing is just given the slower book-ship, which is in our industry, the hardest thing to predict. We're just not expecting those push projects to add to what we already had in the back half. So we're kind of tuning that into our back half plan and so it's both the project push-outs, the RFP wins any line systems were laying out. That's what we put into our bottoms up view for the second half.

是的，我認為，西蒙，我們正在做的只是考慮到圖書發行速度較慢，這是我們行業中最難預測的事情。我們只是不希望這些推播項目能夠增加我們後半段已有的項目。因此，我們正在將其調整到我們的後半計劃中，因此這都是項目推出，RFP 贏得了正在佈局的任何線路系統。這就是我們對下半年自下而上觀點的看法。

And for my follow-up, I'm wondering if you could maybe give us a little bit more color on customer concentration. Were there any 10% customers in the quarter and really more of them have more interest, I think is what are your expectations for customer concentration for the full year 2024? What are you baking in?

對於我的後續行動，我想知道您是否可以給我們更多有關客戶集中度的信息。本季是否有 10% 的客戶，而且確實有更多的客戶有更多的興趣，我想您對 2024 年全年客戶集中度的預期是多少？你用什麼來烘焙？

Yes. So let Amitabh and Nancy hit that one.

是的。那麼就讓阿米塔布和南希來擊中那個吧。

Yes. So for customer concentration, there was not a 10% customer in the quarter for Q1. There were a couple that bumped up close to that. But we are still seeing a lot of strength in terms of ICPs in our top 10.

是的。因此，就客戶集中度而言，第一季沒有 10% 的客戶。有一對夫婦的情況與此很接近。但我們仍然看到前 10 名中 ICP 的實力強勁。

Thank you very much.

非常感謝。

Christian Schwab, Craig-Hallum Capital Group.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本集團。

Great. Thanks for taking my question and a few difficulties because I didn't get every design win that you had. Can you just give us the total of the design wins over a three year basis for all the ones that you kind of walk through that you anticipate, starting in '25 and going through '28. What that total number was ?

偉大的。感謝您提出我的問題並解決了一些困難，因為我並沒有獲得您所獲得的所有設計勝利。您能否告訴我們三年內所有您預期的設計勝利總數，從 25 年開始一直到 28 年。總數是多少？

I think maybe just to recall it, we can go through the ones for systems and for pluggables. So that it's is quite clear because I think it's an important point. Ron, do you want to walk through those ?

我想也許只是回想一下，我們可以回顧一下系統和可插拔的那些。所以這很清楚，因為我認為這是很重要的一點。羅恩，你想看這些嗎？

Yes sure. Thanks David. We had a hyperscaler domain. We had a number of wins. One of them was on I7 for a subsea based when we see worth $100 million to $200 million over three years. We had a GX open line system for terrestrial applications over three years is worth $200 million to $300 million.

是的，當然。謝謝大衛。我們有一個超大規模領域。我們取得了很多勝利。其中一個是在 I7 上的海底基地，我們預計三年內將價值 1 億至 2 億美元。我們擁有一個用於地面應用的 GX 開放線路系統，三年內價值 2 億至 3 億美元。

Also with the major hyperscalers.

也與主要的超大規模提供者合作。

All of these are the hyperscalers. Third one with hyperscalers was on I6, our solution as well as adjusted GX metro . We didn't talk about a specific number on this, but this is likely in a similar range between $100 million to $200 million. And then also the hyperscaler space but motivated by hyperscalers. We had a number of multiple wins, frightened of the managed optical fiber network. So these are in places where the hyperscalers don't operate networks, they leverage service providers to do so.

所有這些都是超大規模者。第三個超大規模是在 I6 上，我們的解決方案以及調整後的 GX Metro 。我們沒有談論具體數字，但這可能在 1 億至 2 億美元之間。然後還有超大規模領域，但受到超大規模的推動。由於對託管光纖網路感到恐懼，我們取得了許多勝利。因此，這些地方是超大規模企業不經營網路的地方，而是利用服務提供者來運作網路。

Typically in the Middle East and Africa and in Asia. We had three new wins. These aren't massive wins, but these are what we refer to as land and expand. So there are opportunities to get into the service providers and expand into other applications within the service providers.

通常在中東、非洲和亞洲。我們取得了三場新勝利。這些並不是巨大的勝利，但這些就是我們所說的土地和擴張。因此，我們有機會進入服務提供者並擴展到服務提供者內的其他應用程式。

On the system side and in the service providers, we had a GX systems portfolio win with a wholesaler in Europe and a major service provider in the US. Again, over multiple years in that same time period, this would be worth $200 million to $300 million. And then if we look at the pluggable wins because there's also a hyperscaler, we had a sizable win in ZR and ZR plus for 800 gig. This is the one that David referred to as under strict NDA. So we can't say a lot about it, but it is worth anywhere between $300 million to $700 million over a three year period.

在系統方面和服務提供者方面，我們的 GX 系統產品組合贏得了歐洲一家批發商和美國一家主要服務供應商的青睞。同樣，在同一時期的多年內，這將價值 2 億至 3 億美元。然後，如果我們看看可插拔的勝利，因為還有一個超大規模器，我們在 ZR 和 ZR plus 800 gig 方面取得了巨大的勝利。這就是大衛在嚴格的保密協議下提到的。所以我們不能透露太多，但三年內它的價值在 3 億到 7 億美元之間。

And then on the on the subsystem side, we had a core hardware first, 400 gig on not just win, but bookings with a major US cable provider and a cable provider has the potential just in a split decision from that network to spend $300 million to $400 million over the next three years, leveraging both applications that use our sub carrier technology with our 400 gig as well as point-to-point applications with our partners, again.

然後在子系統方面，我們首先擁有一個核心硬件，400演出不僅獲勝，而且向美國主要有線電視提供商進行預訂，而有線電視提供商有可能在該網絡的分歧決定中花費3億美元未來三年將達到4 億美元，再次利用使用我們的400 演出的副運營商技術的應用程式以及與我們的合作夥伴的點對點應用程式。

Really, really desirable win on the 400 gig space there.

真的非常非常渴望贏得 400 場演出的空間。

Thanks Ron. So those are all based on again, either design wins or if these are actual contracts and again, on the forecasts that were being provided from the customer set, did that help?

謝謝羅恩。因此，這些都再次基於設計獲勝或這些是否是實際合同，並且再次基於客戶提供的預測，這有幫助嗎？

Yes, that's tremendous. And then maybe my follow-up question is there a number of other customers that you're working for? Would you expect more substantial orders on top of that to occur throughout calendar 2024?

是的，那太棒了。也許我的後續問題是您正在為許多其他客戶工作？您是否預計 2024 年全年會出現更多大量訂單？

Sure. Yes. I mean, I think last time when we updated, we had talked about the 800 gig design win as an example. The initial sampling order that we got from the major US MSO that Ron talked about that happened in Q2 here. And then we also have a US service provider that we had a design win.

當然。是的。我的意思是，我想上次更新時，我們已經討論了 800 場演出設計獲勝的例子。 Ron 談到的我們從美國主要 MSO 收到的初始抽樣訂單發生在第二季。然後我們還有一家美國服務提供商，我們贏得了設計獎。

Almost a year, call it, three quarters ago, and we believe that we'll be receiving the first orders this quarter. That would then be up for scaling as we get into the back half of the year and the '25. So obviously, that's kind of why we're riding out this kind of short term bottoming of the optical curve as people finally burn out the inventory, but ultimately the traffic needs both in the back half and definitely into '25. This helps us fill out kind of that capacity curve to substantiate the growth for 2025.

差不多一年了，也就是三個季度前，我們相信我們將在本季收到第一批訂單。當我們進入今年下半年和 25 世紀時，這將需要擴展。很明顯，這就是為什麼我們要在人們最終耗盡庫存的情況下度過這種光學曲線的短期底部，但最終流量需要在後半段並且肯定要進入 25 年。這有助於我們填寫某種產能曲線，以證實 2025 年的成長。

Fantastic. Thanks for the clarity. No other questions. Thank you.

極好的。感謝您的澄清。沒有其他問題。謝謝。

Michael Genovese, Rosenblatt Securities.

麥可‧吉諾維斯，羅森布拉特證券公司。

Hi Dave. How are you ? The second half outlook that you have. I mean, it's really strong and it seems to be based on that like an unprecedented number of design wins is what you have you can list off like we've never heard this before, like surveyed something new is going on here and I wanted to gauge, are you on like is this how much of the second half is the industry and how much is specific to you guys ? Are you taking share and having to get through the design?

嗨戴夫。你好嗎 ？您對下半年的展望。我的意思是，它真的很強大，而且似乎是基於這樣的基礎，就像前所未有的設計勝利數量一樣，你可以列出來，就像我們以前從未聽說過一樣，就像調查了這裡正在發生的新事情一樣，我想衡量標準，你覺得下半年有多少是這個行業的一部分，有多少是針對你們的？您是否正在分享並必須完成設計？

It's really a good question. I mean, look, the industry is tough to gauge, right? When you looked at where we were coming into the year, everybody kind of had optical growing at low single digits, 1% to 3%. When we look at who's announced so far, right? It appears that most folks that have announced have been now with us announcing between 22% and 50% year over year declines in Q1.

這確實是一個好問題。我的意思是，你看，這個行業很難衡量，對吧？當你看看我們今年的情況時，你會發現每個人的光學成長都在低個位數，即 1% 到 3%。當我們看看到目前為止宣布的是誰時，對嗎？看來大多數已經宣布的人現在都和我們一樣宣布第一季同比下降 22% 到 50%。

Now we think that will improve for everybody based on everybody's imputed guidance in Q2 and based on what we see for the industry, there will be year over year growth in the back half. I mean, I hate to say it, but a really lousy compare when you're at the bottom of the curve for the front half.

現在，我們認為，根據每個人在第二季度的估算指導，以及我們對行業的看法，下半年的情況將會有所改善。我的意思是，我不想這麼說，但是當你處於前半部分曲線的底部時，這是一個非常糟糕的比較。

Now that being said, I've been at the company six years and I just haven't seen us in a position with our portfolio where we're able to get these kind of design wins. But don't forget, we still have to get orders for that deliver the orders and execute. So what we're trying to do for everybody is give you our best view.

話雖這麼說，我已經在公司工作了六年，但我還沒有看到我們的產品組合能夠獲得此類設計勝利。但不要忘記，我們仍然需要獲取訂單來交付訂單並執行。因此，我們努力為每個人做的就是為您提供最好的視野。

I think we are taking more than our fair share. If you look at our book-to-bill over the last two years compared to competitors, but again, getting that rolled out and seeing the recovery start in Q3 is an important aspect. A lot of the schedules for these products for the back half and especially into 2025, it's supported by a lot of the traffic growth that we see in between data centers and for new technology insertion.

我認為我們得到的超出了我們應得的份額。如果您將我們過去兩年的訂單出貨量與競爭對手進行比較，但再次強調，推出這一點並看到第三季開始復甦是一個重要方面。這些產品下半年的許多時間表，特別是到 2025 年，是由我們在資料中心之間看到的大量流量成長和新技術插入所支援的。

Yes, on freight and particularly in the ICP hyperscale market, but I think also in metro, it feels like you've gained a lot of share in the last year. I'd say, but have you seen the number? Any numbers come out to kind of quantify whether it wasn't our feeling is right and have gained share in metro DCI ?

是的，在貨運方面，特別是在 ICP 超大規模市場上，但我認為在地鐵方面也是如此，感覺去年你已經獲得了很多份額。我想說，但你看到這個數字了嗎？有沒有任何數字可以量化我們的感覺是否正確，是否在地鐵 DCI 中獲得了份額？

I have not yet seen anything come out and I think that's because the industry still again, when I mentioned those decline numbers for Q1 for a market that was going to grow 1% to 3%, I just think you're seeing a bottoming of a curve in the front half as people work through the final inventory and reload for 400 gig networks in the metro, the 800 gig networks and the high-capacity networks for the next lift up the pluggable to hit.

我還沒有看到任何結果，我認為這是因為這個行業再次出現，當我提到第一季的下降數字，市場將增長 1% 到 3% 時，我只是認為你看到了底部前半部分的一條曲線，人們正在處理最終庫存並重新加載地鐵中的400 個千兆網路、800 個千兆網路和下一個提升可插拔衝擊的高容量網路。

A well as subsea, they're laying, again, a record number of cables out across the world. So typically you don't get analysts it then very quickly calculate overall optical looks like maybe it declined 7% or 8% this year. That's our calculation based on what we see today. I'm sure the analysts will come down out with the market share, but it's usually a looking back figure.

在海底，他們在世界各地鋪設的電纜數量再次創下紀錄。因此，通常情況下，分析師不會很快計算出整體光學外觀，例如今年可能下降 7% 或 8%。這是我們根據今天所看到的情況進行的計算。我確信分析師會得出市場份額的結論，但這通常是一個回顧數據。

Yes. Great. Appreciate it. Thanks very much.

是的。偉大的。欣賞它。非常感謝。

Thanks.

謝謝。

Meta Marshall, Morgan Stanley.

梅塔‧馬歇爾，摩根士丹利。

Hi, this is Karan Juvekar on for Meta. The first question is just more of a clarification question. I think you mentioned that $25 million of the book ship push-outs were mostly on the ICP side. Did I hear that correctly? And if it was a surprise to you guys, I guess any detail on sort of what how are yet is sort of a.

大家好，我是 Meta 的 Karan Juvekar。第一個問題只是一個澄清問題。我想你提到過 2500 萬美元的圖書出貨量主要是在 ICP 方面。我沒聽錯嗎？如果這對你們來說是一個驚喜，我想任何有關目前情況的細節都是如此。

Yes, no, I obviously our contemplated midpoint of the range was higher than what we got and that's not been our job as leaders of the company and executives and stewards of the shareholders to give the best view of what we see. So obviously, that shifting out was a bit surprising and we continue to see that happening in Q2.

是的，不，我顯然我們預期的範圍中點高於我們得到的範圍，這不是我們作為公司領導者、高管和股東管理者的工作，不能提供我們所看到的最好的觀點。顯然，這種轉變有點令人驚訝，我們繼續看到這種情況在第二季發生。

Again some of that is actual book-ship business and some are projects that are just being delayed as people tried to kind of clean up things on their own financials in the front half and then we see things being scheduled in the second half.

同樣，其中一些是實際的圖書運輸業務，有些是只是被推遲的項目，因為人們試圖在前半段清理自己的財務狀況，然後我們看到事情被安排在下半年。

But yes, primarily on the ICP front, if you look at our ICP numbers year over year, quarter over quarter, that's why you see a little bit more of a decline there. And yes, that wasn't something we had planned.

但是，是的，主要是在 ICP 方面，如果你逐年、逐季地查看我們的 ICP 數據，這就是為什麼你會看到那裡有更多的下降。是的，這不是我們計劃的。

Okay. That's helpful. And then second question for me. I guess, traction on the pluggables win that you had last quarter and any details around there? And was this one of the push outs that you saw in the quarter? And if so, does that impact the gross margins just given it's a more vertically integrated product?

好的。這很有幫助。然後是我的第二個問題。我想，上個季度的可插拔式勝利的吸引力以及周圍的任何細節？這是您在本季度看到的退出之一嗎？如果是這樣，考慮到它是一個更垂直整合的產品，這是否會影響毛利率？

Appreciate that you have an idea. So you may not be able to disclose much. But yes, just to be clear, though.

感謝您有一個想法。所以你可能無法透露太多。但是，是的，只是要澄清一下。

Yes, I want to be crystal clear. So the 800 gig wouldn't start until the as we talked about on our last call until we're in the mid of 2025. So that had no impact on our business in Q1 and Q2. Although those that number that we gave is, again, based on as we engage on the contract and look at the forecasts that we've contemplated to be able to drive the right capacity through our fabs that 300 to 700 is something we hadn't talked about prior.

是的，我想說得一清二楚。因此，正如我們在上次電話會議中談到的那樣，直到 2025 年中期，800 場演出才會開始。儘管我們給出的數字同樣是基於我們簽訂合約並查看我們所考慮的能夠透過我們的晶圓廠驅動正確產能的預測，但 300 到 700 是我們沒有做到的之前談到過。

The new win in the or the design win in with the MSO in North America is something new here in Q2, meaning the first order we have the ability to then scale that to the numbers Ron talked about again would begin to happen as we get into the back half of the year. So that was also not contemplated. That's not an excuse code for the front half dip that both the industry is experiencing and we're experiencing.

北美 MSO 的新勝利或設計勝利是第二季度的新事物，這意味著我們有能力將其擴展到羅恩再次談到的數字的第一個訂單將在我們進入時開始發生下半年。所以這也是沒有考慮到的。這並不是業界和我們正在經歷的前半段下滑的藉口。

Okay, that's helpful. Thank you.

好的，這很有幫助。謝謝。

George Notter, Jefferies.

喬治諾特，傑弗里斯。

I just wanted to come back on the roster of content provider wins you mentioned. Just to be clear, are these all incremental to the existing run rates of business you're doing with these customers?

我只是想回到你提到的內容提供者獲勝名單。需要明確的是，這些是否都會增加您與這些客戶開展業務的現有運作率？

Yes, I think for the most part, the I7 subsea win is incremental. The hyperscaler OLS win from new line system that we just announced in Q1 is indeed incremental on the system side of things and certainly the 800 gig wins. So those are the three largest that we talked about.

是的，我認為在很大程度上，I7 海底勝利是漸進的。我們剛剛在第一季宣布的新生產線系統帶來的超大規模 OLS 確實是系統方面的增量，當然也包括 800 台演出的勝利。這就是我們討論的三個最大的。

The moving somebody over I6 is actually at an existing customer that we have that's moving on to the I6 platform.

讓某人轉向 I6 的人實際上是我們現有的客戶，他們正在轉向 I6 平台。

Got it. Okay. And then for these wins, I assume then from the these are all contracted with the dollar values you guys have outlined specified or at least unit volumes that translate into those kinds of dollars specified? Or I guess I just want to make sure there are pieces of business that are in backlog now. I guess I would have expected the bookings to be up more also given the strength here.

知道了。好的。然後，對於這些勝利，我認為這些勝利都與你們概述的指定美元價值或至少轉化為指定美元的單位數量有關？或者我想我只是想確保現在有一些積壓的業務。考慮到這裡的實力，我想我預計預訂量也會增加更多。

I'm just trying to put it all together and think about the second half of the year and that ramp? Thanks.

我只是想把所有的事情放在一起，想想下半年的情況和坡道？謝謝。

Now, George, it's a good question, and I think we were pretty specific in our language here. These design wins or RFP wins when you win them, it's great. And when you in many cases, you sign a contract, but then the volumes are based on the forecast that they then roll out. So what we've given you is as we've negotiated these RFPs, these design wins and price them as well as the pluggable contract that we talked about,.

現在，喬治，這是一個很好的問題，我認為我們在這裡的語言非常具體。當您贏得這些設計或 RFP 時，這真是太棒了。在很多情況下，當你簽署合約時，但數量是基於他們隨後推出的預測。因此，我們給您的是，當我們談判這些 RFP 時，這些設計獲勝並為其定價，以及我們討論的可插入合約。

We get volumes kind of low range, medium range, high range, or it's actually a low and high from the customers. These are not hard program volume to rollout in quarter X, Y and Z, that would be great because it would be much easier to do the quarterly predictions going forward.

我們收到的銷售量有低範圍、中範圍、高範圍，或實際上是來自客戶的低範圍和高範圍。這些並不是 X、Y 和 Z 季度推出的硬性計劃量，這會很棒，因為未來進行季度預測會更容易。

So these are as we said that should be worth these ranges, right? And that's based on the forecast we've gotten from the client that we've landed those deals that.

所以正如我們所說，這些應該值得這些範圍，對嗎？這是基於我們從客戶那裡得到的預測，即我們已經達成了這些交易。

Got it. And is that a big element of the second half ramp? I assume it is given the conversation.

知道了。這是下半段斜坡的重要元素嗎？我認為這是給定的對話。

Yes, it's a reasonable portion of the second-half ramp, many of them on the line system.

是的，這是下半場坡道的合理部分，其中許多都在線路系統上。

The motion side and then the push-outs of the ICP from Q1 and Q2. I mean, that's material to the second half and when you look at the pluggable, the OLS win and the I7 win, that's more primary to 2025.

運動側，然後 ICP 從 Q1 和 Q2 推出。我的意思是，這對下半年來說很重要，當你看看可插拔、OLS 的勝利和 I7 的勝利時，這對 2025 年來說更為重要。

Thank you.

謝謝。

Thanks, George.

謝謝，喬治。

David Kang, B. Riley.

大衛康，B.萊利。

Thank you. Good afternoon. My first question is regarding the inventory situation, but just exactly how much of excess inventories are out there and are we pretty close? So we still got maybe a few more quarters to go.

謝謝。午安.我的第一個問題是關於庫存狀況，但到底有多少過剩庫存，我們是否已經非常接近了？所以我們可能還有幾個季度的時間。

Well, certainly there was enough to prevent $25 million of a book ship in the quarter and call it an equal number for Q2 as well as continued project pushouts. But we do think that things are beginning to pin down And based on the RFP activity and the engagement we're having on both the ICP and CSP side, we believe things are narrowing down to where the second half there should be again that year over year growth.

好吧，當然，這足以阻止本季 2500 萬美元的圖書出貨量，並將其稱為第二季度的同等數字以及持續的項目推出。但我們確實認為事情已經開始確定，根據 RFP 活動以​​及我們在 ICP 和 CSP 方面的參與，我們相信事情正在縮小到今年下半年應該再次發生的情況年增長。

Not just first half over second half growth because this is, I think, a trough that you'll see in the industry that will begin to pick up in Q3 and Q4.

不僅僅是上半年和下半年的成長，因為我認為，這是行業的一個低谷，並將在第三季和第四季開始回升。

Got it. And then regarding all these multiple design wins, you talked about ranging from $100 million to $300 million. Are these just for clarification hard contracts where there's like a minimum amount or is just a forecast funding from these customers ?

知道了。然後，關於所有這些多項設計勝利，您談到了從 1 億美元到 3 億美元的範圍。這些只是為了澄清硬合同，其中有最低金額，還是只是這些客戶的預測資金？

Now these are I mean, look these are all wins that then purchase orders are issued against. Right, either contracts or RFP wins or design wins where you then have quantities off against that and as part of that process, we go through what volume over what period of time, and that's why there's such a wide range of we tried to put a low point in a high, and that's just to better educate folks on why we feel good about 2025 moving forward.

現在，我的意思是，看看這些都是勝利，然後發出採購訂單。是的，無論是合約或RFP 獲勝，還是設計獲勝，然後您就會獲得數量，作為該過程的一部分，我們會在一段時間內完成哪些數量，這就是為什麼我們試圖將數量範圍如此之廣的原因。

And when would they start to hit your like-for-like backlog?

他們什麼時候會開始滿足您同類的積壓訂單？

Yes. So I mean, as you start to get out towards the end of this year, I think you would start to see that hit the backlog, and that's kind of what would be normalized in view of the growth rates we have in for Q3 and Q4 and for 2025.

是的。所以我的意思是，當你在今年年底開始退出時，我認為你會開始看到積壓的情況，考慮到我們第三季和第四季的成長率，這將是正常化的以及 2025 年。

Got it. Thank you.

知道了。謝謝。

That concludes our question and answer session. I will now turn the call back over to David Heard for closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給大衛赫德 (David Heard)，他將發表結束語。

Yes. So certainly, as we mentioned, the start to the year was slower than expected as carriers and ICPs kind of held onto their orders and ran their networks a bit hotter than I think we all expected and you'll see that going across the industry, but they are planning on expanding those 400 gig services and 800 gig services for high capacity routes.

是的。因此，正如我們所提到的，今年年初的速度比預期要慢，因為運營商和ICP 保留了他們的訂單，並且他們的網絡運行比我認為我們所有人預期的要熱一些，你會看到整個行業都出現這種情況，但他們正計劃將 400 場演出服務和 800 場演出服務擴展到高容量航線。

As I said, we're not the overall market analysts but as we calculate that probably says that there's a market decline in the front half that's kind of temporary nature, call it digestion finalization at 20%, followed by growth in the back half. Albeit still we're not pushing anything. We're not pushing everything that was missed in the front half to the second half.

正如我所說，我們不是整體市場分析師，但根據我們的計算，可能會說前半段市場出現了暫時性的下滑，稱之為消化最終確定20%，隨後是後半段的增長。儘管如此，我們仍然沒有推動任何事情。我們不會把上半場錯過的一切推遲到下半場。

For an overall decline in the optical market that's 7% to 8%, but the traffic generation in 400 gig subsea, high capacity routes and then ultimately inside the data center are going to drive, I think the optical world to go back to that normalized next cycle on AI as we get into 2025.

光學市場整體下降了 7% 到 8%，但 400 GB 海底、高容量路線以及最終資料中心內部的流量產生將推動這一趨勢，我認為光學世界將回到正常化的狀態進入2025 年，人工智慧將迎來下一個週期。

So certainly some of these RFP wins and fair questions guys on the not hard-coded contract value. But in the company's history, we just have not seen this kind of potential value of lining a brand new line system into ICP's, I7 wins already that are significant in nature as well as on the pluggable side, which is, I think going to drive a huge cost benefit for us for our long term model.

因此，當然，其中一些 RFP 會獲勝，並對非硬編碼的合約價值提出公平的質疑。但在公司的歷史上，我們還沒有看到這種將全新的線路系統嵌入 ICP 的潛在價值，I7 已經獲勝，這在本質上以及可插拔方面都具有重要意義，我認為這將推動對於我們的長期模型來說，這是巨大的成本效益。

So we all know, optical is becoming more important to the network outside and inside the data center. And I think our strategy VI is well positioned for the next optical cycle. So I know the news on the Q1 and the Q2 outlook well, in line with the optical industry are a little bit better is not great with the prospects on that second half growth and even more importantly into 2025 is very, very strong.

眾所周知，光纖對於資料中心外部和內部的網路變得越來越重要。我認為我們的戰略 VI 已經為下一個光學週期做好了準備。因此，我很了解第一季和第二季前景的消息，與光學產業的情況一致，好一點，但下半年成長的前景並不好，更重要的是進入 2025 年的前景非常非常強勁。

So we'll continue to keep our heads down and focusing on execution and taking more than our fair share, driving operating efficiencies and keeping transparent with what we see in the market as it develops.

因此，我們將繼續保持低調，專注於執行，並獲得超出我們應有份額的份額，提高營運效率，並對我們在市場發展中看到的情況保持透明。

So appreciate the thoughtful questions and engagement, and we'll be talking to you soon.

因此，感謝深思熟慮的問題和參與，我們很快就會與您交談。

Thanks, everybody. Have a great night.

謝謝大家。祝你有個愉快的夜晚。

So that concludes today's conference call and 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，現在您可以斷開連線了。