Lumentum Holdings Inc. (LITE) 2022 Q1 法說會逐字稿

Good morning. My name is Emily, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Lumentum conference call to discuss its proposed acquisition of NeoPhotonics in addition to a review of Lumentum's Q1 fiscal 2022 financial results. (Operator Instructions) The call is scheduled for approximately 1 hour. As a reminder, today's call is being recorded.

早安。我叫 Emily，今天將擔任各位的電話會議接線員。此刻，我想歡迎各位參加 Lumentum 的電話會議，討論其擬議收購 NeoPhotonics 的事項，並同時回顧 Lumentum 2022 會計年度第一季的財務結果。(接線員指示) 本次會議預計約 1 小時。提醒各位，今天的會議將被錄音。

At this time, I'd like to turn the conference over to Jim Fanucchi of Darrow Associates. Sir, please go ahead.

此刻，我想將會議交給 Darrow Associates 的 Jim Fanucchi。先生，請開始。

Thank you, operator. Welcome to Lumentum's call to discuss its announcement of entering into an agreement to acquire NeoPhotonics and its fiscal first quarter 2022 earnings. This is Jim Fanucchi from Darrow Associates, assisting Lumentum with its Investor Relations.

謝謝，接線員。歡迎各位參加 Lumentum 的電話會議，討論其宣布已簽署協議收購 NeoPhotonics，以及其 2022 會計年度第一季的財報。我是 Darrow Associates 的 Jim Fanucchi，協助 Lumentum 的投資人關係工作。

Joining the call today from the Lumentum management team, we have Alan Lowe, President and Chief Executive Officer; Wajid Ali, Chief Financial Officer; and Chris Coldren, Senior Vice President of Strategy and Corporate Development. We also have on the call Tim Jenks, President, Chief Executive Officer and Chairman of NeoPhotonics.

今天與會的 Lumentum 管理團隊成員包括：總裁兼執行長 Alan Lowe；財務長 Wajid Ali；以及策略與企業發展資深副總裁 Chris Coldren。我們也邀請到 NeoPhotonics 的總裁、執行長暨董事長 Tim Jenks 參與本次會議。

Today's call will include forward-looking statements regarding our expectations regarding the acquisition, including market opportunity, expected synergies, financial and operating results and expectations regarding accretion, time to close, strategies of the combined company and benefits to customers and the markets in which we operate as well as the impact of COVID-19 and the responsive actions on our business and continuing uncertainty in this regard, trends and expectations for our products and technology, our markets, market opportunity and customers and our expected financial performance, including our guidance as well as statements regarding our future revenues, our financial model and our margin targets.

今天的會議將包含前瞻性陳述，內容涉及我們對本次收購的預期，包括市場機會、預期綜效、財務與營運結果，以及對增益（accretion）、完成交易所需時間、合併後公司的策略、對客戶與我們所營運市場的效益；亦包括 COVID-19 及相關應對措施對我們業務的影響，以及在此方面持續存在的不確定性；並涵蓋我們產品與技術的趨勢與展望、我們的市場、市場機會與客戶，以及我們預期的財務表現（包括財測），以及關於未來營收、財務模型與毛利率目標的陳述。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations, particularly the risk factors described in our SEC filings. We encourage you to review our most recent filings with the SEC, particularly the risk factors described in the annual report on Form 10-K for the year ended July 3, 2021, and those of the 10-Q for the quarter ended October 2, 2021, to be filed by Lumentum with the SEC.

這些陳述受到風險與不確定性影響，可能導致實際結果與我們目前的預期有重大差異，特別是我們向美國證券交易委員會（SEC）提交文件中所描述的風險因素。我們鼓勵各位查閱我們最近向 SEC 提交的文件，特別是截至 2021 年 7 月 3 日止年度的 Form 10-K 年報中所述風險因素，以及截至 2021 年 10 月 2 日止季度的 Form 10-Q（將由 Lumentum 向 SEC 提交）中所述風險因素。

The forward-looking statements provided during this call are based on Lumentum's reasonable beliefs and expectations as of today. Lumentum undertakes no obligation to update these statements, except as required by applicable law.

本次會議中所提供的前瞻性陳述，係基於 Lumentum 截至今日的合理信念與預期。除非適用法律要求，Lumentum 不承擔更新這些陳述的義務。

Please also note, unless otherwise stated, all results and projections discussed in this call are non-GAAP. Non-GAAP financials are not to be considered as a substitute for or superior to financials prepared in accordance with GAAP. Lumentum's press releases with the fiscal first quarter 2022 results and transaction announcement and supplemental slides are available on its website at www.lumentum.com under the Investors section. This includes additional details about our non-GAAP financial measures and a reconciliation between our historical GAAP and non-GAAP results.

另請注意，除非另有說明，本次會議中討論的所有結果與預測均為非 GAAP。非 GAAP 財務資訊不應被視為依 GAAP 編製之財務資訊的替代或更優者。Lumentum 關於 2022 會計年度第一季業績與交易公告的新聞稿，以及補充投影片，已公布於其網站 www.lumentum.com 的「投資人」專區。其中包含我們非 GAAP 財務衡量指標的更多細節，以及歷史 GAAP 與非 GAAP 結果之間的調節表。

For those following along with the presentation on today's acquisition announcement, posted on Lumentum's website, please turn to Slide 5.

若各位正跟隨今天收購公告的簡報（已張貼於 Lumentum 網站），請翻到第 5 頁投影片。

Now I will turn the call over to Alan for his comments.

現在我將把電話交給 Alan 發表評論。

Thank you, Jim. Good morning, everyone. Today is a very exciting day, and we have a lot to cover. We will start with the transaction we announced earlier this morning, and then we will discuss our quarterly results.

謝謝你，Jim。各位早安。今天是非常令人振奮的一天，我們有很多內容要談。我們將先從今天稍早宣布的交易開始，接著討論我們的季度業績。

Earlier this morning, we announced that Lumentum will acquire NeoPhotonics to accelerate optical networking speed and scalability. Through this transaction, we are increasing Lumentum's exposure to the rapidly growing 400 gig and above optical communication opportunity, create an even better partner for our customers, adding a talented team of photonics experts and expanding our photonics toolkit with technologies widely applicable across many markets, including silicon photonics, ultra-narrow linewidth external cavity tunable lasers and RF integrated circuits. Before getting into the details of the many benefits of this transaction, I will first provide a brief overview of how this transaction fits with our strategy, and then I will turn it over to Tim for his thoughts on today's announcement.

今天稍早，我們宣布 Lumentum 將收購 NeoPhotonics，以加速光網路的速度與可擴展性。透過這項交易，我們將提高 Lumentum 對快速成長的 400G 及以上光通訊機會的曝險，為客戶打造更佳的合作夥伴，納入一支才華洋溢的光子學專家團隊，並以多項可廣泛應用於眾多市場的技術擴充我們的光子學工具箱，包括矽光子、超窄線寬外腔可調式雷射，以及 RF 積體電路。在深入說明此交易帶來的諸多效益之前，我將先簡要概述此交易如何契合我們的策略，然後把時間交給 Tim，請他分享對今天公告的看法。

Please turn to Slide 6. Lumentum is a leader in multiple growing markets, which are increasingly utilizing photonics. Our more than $20 billion addressable market consists of photonics for communications, 3D sensing and LiDAR and advanced manufacturing. In each of these markets, there are strong secular trends creating growth opportunities for Lumentum. Our strategy is to organically and inorganically invest in differentiated products and technologies in each of our markets to accelerate growth.

請翻到第 6 頁投影片。Lumentum 在多個成長型市場中居於領導地位，而這些市場正日益採用光子學。我們超過 200 億美元的可服務市場，涵蓋通訊用光子學、3D 感測與 LiDAR，以及先進製造。在上述每個市場中，都有強勁的長期結構性趨勢為 Lumentum 創造成長機會。我們的策略是在各個市場中，以內生成長與外部併購並行的方式，投資於具差異化的產品與技術，以加速成長。

Over the past 6 years as a public company, we have made great strides in executing our strategy to grow and win, which is grounded in: leveraging our broad technology and manufacturing capabilities across multiple end markets driven by durable long-term trends, developing and nurturing close relationships with market-leading customers and enabling them to win in their markets, and investing in fundamental technologies in anticipation of customer needs and then creating the best-performing and highest-quality products.

在成為上市公司過去 6 年中，我們在執行「成長並勝出」策略方面取得長足進展；該策略建立在以下基礎之上：運用我們廣泛的技術與製造能力，跨多個由長期耐久趨勢驅動的終端市場；發展並培育與市場領先客戶的緊密關係，協助他們在其市場中勝出；以及預先投資於基礎技術以因應客戶需求，並打造性能最佳、品質最高的產品。

Consistent with this, we have had a strategic approach to M&A that has created value for Lumentum and our stockholders. For example, we closed our acquisition of Oclaro in late 2018. And since then, we have far exceeded the objectives that we set for the transaction. We also significantly exceeded our synergy targets and on an earlier time line than when we announced the transaction.

與此一致，我們對併購（M&A）採取策略性方法，為 Lumentum 及股東創造價值。例如，我們在 2018 年底完成對 Oclaro 的收購。自那以來，我們已大幅超越當初為該交易設定的目標。我們也顯著超出綜效目標，且達成時間早於交易宣布時所預期的時程。

Today is another step towards achieving our strategic objectives. We look forward to building upon our proven M&A track record and delivering enhanced value through the combination with NeoPhotonics as we successfully integrate the company into Lumentum.

今天是我們邁向策略目標的另一個步驟。我們期待在既有成功的併購紀錄上再接再厲，並在將 NeoPhotonics 成功整合進 Lumentum 的過程中，透過雙方結合交付更高的價值。

I'm now happy to turn the call over to Tim Jenks, NeoPhotonics President, CEO and Chairman of the Board, who is here to tell you more about NeoPhotonics and why he believes this combination is so compelling. Tim?

我很高興現在把電話交給 NeoPhotonics 的總裁、執行長暨董事長 Tim Jenks。他將向各位介紹 NeoPhotonics，並說明他為何認為這項結合極具吸引力。Tim？

Thank you, Alan. Good morning, everyone. I'm pleased to be here with you today. Alan, I share your enthusiasm for the future of our companies and this combination.

謝謝你，Alan。各位早安。我很高興今天能與各位在此相聚。Alan，我也同樣對我們兩家公司以及這項結合的未來充滿熱情。

NeoPhotonics is a leading global developer and manufacture of lasers and optoelectronics solution for high-speed cloud and telecom carrier networks. We are focused on being a technology innovator in high-speed 400 gig and above optical solutions with our ultra-pure line tunable lasers, silicon photonics and our leading component and module technologies for speed over distance. We are confident that Lumentum is the right partner for the next phase of growth of NeoPhotonics business.

NeoPhotonics 是全球領先的雷射與光電解決方案開發與製造商，服務於高速雲端與電信營運商網路。我們專注於成為高速 400G 及以上光學解決方案的技術創新者，核心技術包括我們的超高純度線寬可調式雷射、矽光子，以及我們領先的元件與模組技術，以實現長距離高速傳輸。我們相信，Lumentum 是 NeoPhotonics 業務下一階段成長的正確合作夥伴。

I believe that our combining with Lumentum can significantly accelerate our business and further position us for success. The combination of scale, breadth and financial strength will help us to accelerate our customer product road maps for our leading high-speed technologies and to continue to serve our customers on a larger scale.

我相信，與 Lumentum 的結合能顯著加速我們的業務，並進一步強化我們的成功定位。規模、產品廣度與財務實力的結合，將協助我們加速為客戶推進其產品藍圖中的領先高速技術，並以更大的規模持續服務客戶。

This combination is beneficial for all of our stakeholders. The transaction delivers immediate and substantial value to our stockholders through the cash consideration. Our talented and committed employees will benefit from having new and exciting career opportunities as a result of the enhanced scale and breadth of the combined and growing global company. And our customers will benefit from a more financially stable supplier with a much broader set of capabilities who, like NeoPhotonics, is committed to advancing photonics solution over the long run.

這項結合將使我們所有利害關係人受益。本交易透過現金對價，為我們股東帶來即時且可觀的價值。我們才華洋溢且投入的員工，將因合併後全球公司規模與廣度的提升與成長，而獲得嶄新且令人振奮的職涯機會。而我們的客戶將受益於一家財務更穩健、能力組合更廣泛的供應商；該供應商如同 NeoPhotonics 一樣，長期致力於推進光子學解決方案。

I want to personally thank all of the capable employees of NeoPhotonics for their hard work, continuing innovation and persistent determination over 25 years. Our company has grown, developed new technologies, scaled and reinvented itself multiple times. Now I invite you to bring that dedication and driving spirit to this new, exciting chapter.

我想親自感謝 NeoPhotonics 所有優秀員工在過去 25 年來的辛勤付出、持續創新與堅定不移的毅力。我們的公司不斷成長、開發新技術、擴大規模，並多次自我重塑。現在，我邀請各位把這份投入與驅動精神帶到這個令人振奮的新篇章。

Lastly, I want to recognize the success that Alan and the Lumentum team have achieved in the industry. I am confident that they share many of the same priorities and passions that we have for our organization going forward. And I look forward to working closely with Alan and his team to capture the great opportunities ahead for the combined company.

最後，我想肯定 Alan 與 Lumentum 團隊在產業中所取得的成功。我相信，他們在公司未來發展上，與我們有許多相同的優先事項與熱忱。我也期待與 Alan 及其團隊緊密合作，把握合併後公司在前方的重大機會。

I would like to turn the call over to Alan for further comments.

接下來我想把電話會議交給 Alan，請他進一步發表意見。

Thank you, Tim, for the kind remarks and for your leadership in getting us to this day. I'd now like to walk everyone through the compelling benefits of this combination. Please turn to Slide 7 of the presentation.

謝謝你，Tim，給予親切的評語，也感謝你帶領我們走到今天。接下來我想帶大家了解這次合併所帶來的具吸引力的效益。請翻到簡報第 7 頁。

Adding NeoPhotonics expands our product portfolio, addressing rapidly growing 400 gig and above applications in the optical communications market. The added products complement our existing portfolio, and the combined company will have more comprehensive capabilities for next-generation optical networks.

納入 NeoPhotonics 將擴充我們的產品組合，因應光通訊市場中快速成長的 400G 及以上應用。新增產品可與我們既有產品組合互補，合併後公司將具備更完整的能力，以支援下一代光網路。

The transaction creates an even better partner for our customers. It combines a broad portfolio of differentiated products and technologies that customers desire with a solid financial position. Lumentum is committed to strongly investing in innovation and manufacturing capabilities to deliver on our customers' needs today and into the future.

這筆交易將為我們的客戶打造更理想的合作夥伴。它把客戶所需要的多元差異化產品與技術組合，與穩健的財務狀況結合在一起。Lumentum 承諾將大力投資創新與製造能力，以滿足客戶當前及未來的需求。

Feedback from our customers on this transaction has been very positive. They appreciate the logic of the combination and how they will get a better partner when the transaction closes. The combined company will benefit from R&D and manufacturing capabilities globally, including in Asia, North America and Europe. This allows us to leverage a broad, global talent pool to accelerate innovation. It also allows closer collaboration with market-leading customers around the world.

客戶對這筆交易的回饋非常正面。他們認同這項合併的邏輯，並認為交易完成後將獲得更好的合作夥伴。合併後公司將受益於遍布全球的研發與製造能力，包括亞洲、北美與歐洲。這使我們能運用廣泛的全球人才庫，加速創新。同時也能與全球市場領先客戶更緊密合作。

The relevance of the combined company's capabilities extends beyond optical communications. The combined organization will be well positioned to pursue attractive growth opportunities in new markets. And finally, the combination will be immediately accretive to Lumentum's non-GAAP earnings per share following the closing, and we will deliver substantial run rate synergies contributing to continued best-in-class financial performance.

合併後公司的能力相關性不僅限於光通訊。合併後的組織將具備良好定位，以追求新市場中具吸引力的成長機會。最後，該合併在交割完成後將立即增厚 Lumentum 的非 GAAP 每股盈餘，且我們將實現可觀的年度化協同效益，進一步支撐持續的同級最佳財務表現。

Combining creates opportunities to increase efficiency and to benefit from economies of scale. We are confident that these compelling strategic merits will deliver significant long-term value to our stockholders.

合併將創造提升效率並受益於規模經濟的機會。我們有信心，這些具吸引力的策略優勢將為股東帶來顯著的長期價值。

Turning to Slide 8. As you know, photonics are increasingly becoming a critical and enabling technology for many applications that are shaping our future. Internet, cloud, 5G and broadband access network capacity requirements continue to grow at an unrelenting pace. These increasing requirements are driven by the digital transformation of work and life, high-bandwidth video, gaming and other bandwidth-intensive applications. Photonics technology is essential to the scaling of data center and telecom network capacity and meeting the requirements of the applications I mentioned earlier.

接著看第 8 頁。如各位所知，光子技術正日益成為許多塑造我們未來之應用的關鍵賦能技術。網際網路、雲端、5G 與寬頻接取網路的容量需求，持續以毫不減緩的速度成長。這些不斷增加的需求，源自工作與生活的數位轉型、高頻寬影音、遊戲以及其他高頻寬應用。光子技術對於擴充資料中心與電信網路容量，以及滿足我先前提到的應用需求至關重要。

Photonics are also increasingly playing a critical role in new approaches to manufacturing, industrial sensing, automobiles, delivery vehicles, safety, security, health care, life sciences as well as addressing climate change. These trends create a more than $20 billion and growing total addressable market for Lumentum today, as I mentioned earlier.

光子技術也日益在製造新方法、工業感測、汽車、配送車輛、安全、防護、醫療保健、生命科學，以及因應氣候變遷等領域扮演關鍵角色。如我先前所提，這些趨勢為 Lumentum 在今日創造了超過 200 億美元且持續成長的可服務市場總量（TAM）。

Now turning to Slide 9. Adding NeoPhotonics accelerates Lumentum's exposure to some of the fastest-growing portions of the more than $10 billion market for optical components for communication applications. The staggering 30% compound annual growth rate in Internet bandwidth is driving increasing data transmission speeds and rapid growth in the number of high-speed ports in optical networks.

現在看第 9 頁。納入 NeoPhotonics 可加速 Lumentum 佈局於超過 100 億美元的通訊應用光學元件市場中、成長最快的部分。網際網路頻寬驚人的 30% 複合年成長率，正推動資料傳輸速度提升，以及光網路中高速埠數量的快速成長。

Shown on this slide is the anticipated growth of 400 gig and above telecom ports over the next 5 years. Growth is very robust with an expected compound annual growth rate of more than 75%. All of this highlights a significant opportunity to accelerate growth with the addition of NeoPhotonics.

本頁顯示未來 5 年 400G 及以上電信埠的預期成長。成長動能非常強勁，預期複合年成長率超過 75%。這些都凸顯了透過納入 NeoPhotonics 來加速成長的重大機會。

Turning to Slide 10. The combined company will have a broad and comprehensive product portfolio and will be well positioned to serve the 400 gig and above market opportunity. Customers are looking for technology providers, like Lumentum, to offer a wider range of products. Customers are also looking for compelling, long-term product and technology road maps that they can count on and incorporate into their future product plans. NeoPhotonics has developed a product portfolio complementary to Lumentum's, and the combined company's product offerings will span next-generation data centers, access, metro and long-haul applications.

接著看第 10 頁。合併後公司將擁有廣泛且完整的產品組合，並具備良好定位以掌握 400G 及以上市場機會。客戶正在尋找像 Lumentum 這樣的技術供應商，能提供更廣泛的產品範圍。客戶也在尋找具吸引力、可長期依賴的產品與技術路線圖，以納入其未來產品規劃。NeoPhotonics 已建立可與 Lumentum 互補的產品組合，合併後公司的產品供應將涵蓋下一代資料中心、接取網、都會網與長途傳輸等應用。

Turning to Slide 11. The combined company's technologies start at the material, wafer fabrication and device physics level. This allows innovation to start from the most fundamental level, which provides long-term differentiation and customer value proposition. It also gives the combination a high degree of vertical integration and scalable, low-cost manufacturing. In addition to the new technologies, NeoPhotonics also brings a talented team of engineers focused on Photonics, which increases our breadth and depth of technical resources.

接著看第 11 頁。合併後公司的技術從材料、晶圓製造與元件物理層級開始。這使創新能從最基礎的層面啟動，進而帶來長期差異化與客戶價值主張。這也讓合併後公司具備高度垂直整合，以及可擴充、低成本的製造能力。除了新技術之外，NeoPhotonics 也帶來一支專注於光子技術的優秀工程師團隊，提升我們技術資源的廣度與深度。

Turning to Slide 12. The combination's breadth of technology and vertical integration spans a wide range of photonics and electronic semiconductor materials and devices, advanced packaging and RF design as well as electronics and software. The relevance of these capabilities extend beyond optical communications.

接著看第 12 頁。本次合併在技術廣度與垂直整合方面，涵蓋多種光子與電子半導體材料與元件、先進封裝與射頻（RF）設計，以及電子與軟體。這些能力的相關性不僅限於光通訊。

I highlighted earlier numerous other applications that are increasingly utilizing photonics. An important element of Lumentum's strategy is to leverage our capabilities into new markets and applications. We have successfully employed this strategy in developing 3D sensing solutions as well as creating compelling commercial laser solutions for our customers, as shown on this slide. The combined organization will be well positioned to pursue additional, attractive, new growth opportunities in new markets.

我先前已強調，還有許多其他應用正日益採用光子技術。Lumentum 策略中的重要一環，是將我們的能力延伸至新市場與新應用。如本頁所示，我們已成功運用此策略，開發 3D 感測解決方案，並為客戶打造具吸引力的商用雷射解決方案。合併後的組織將具備良好定位，以追求更多具吸引力的新市場成長機會。

With that, I will now hand it over to Wajid to provide more details on the financial terms and benefits of this transaction. Wajid?

接下來，我將把時間交給 Wajid，請他提供本交易的財務條款與效益的更多細節。Wajid？

Thank you, Alan. Good morning, everyone. I would like to echo Alan and Tim's sentiment about the significant benefits of this transaction. Please turn to Slide 13.

謝謝你，Alan。各位早安。我想呼應 Alan 與 Tim 對於本交易重大效益的看法。請翻到第 13 頁。

Under the terms of the transaction, which has been unanimously approved by the Board of Directors of both companies, NeoPhotonics stockholders will receive $16 per share in cash for each NeoPhotonics share they own. This equates to a total transaction value of approximately $918 million. As part of the transaction, we will be providing up to a $50 million term loan to NeoPhotonics to help fund CapEx and increased working capital associated with their growth plans. The transaction, cash consideration will be funded from the combined company's balance sheet.

依據本交易條款（已獲兩家公司董事會一致通過），NeoPhotonics 股東就其持有的每股 NeoPhotonics 股票，將可獲得每股 16 美元的現金對價。這相當於約 9.18 億美元的交易總價值。作為交易的一部分，我們將向 NeoPhotonics 提供最高 5,000 萬美元的定期貸款，以協助其為成長計畫相關的資本支出（CapEx）及增加的營運資金提供資金。本交易的現金對價將由合併後公司的資產負債表提供資金。

We expect this transaction to deliver significant financial benefits and drive enhanced value for our stockholders. The transaction is expected to be immediately accretive to non-GAAP earnings per share upon closing.

我們預期本交易將帶來顯著的財務效益，並為股東創造更高價值。本交易預期在交割完成時將立即增厚非 GAAP 每股盈餘。

Given the complementary nature of our businesses, we expect to generate more than $50 million of annual run rate synergies within 24 months of the closing of the transaction. Cost of goods sold synergies are expected to be more than 60% of this total driven by manufacturing infrastructure and supply chain efficiencies. Operating expense synergies will be driven by organizational efficiencies related to aligning and integrating business process post closing and serving a similar customer base.

鑑於我們業務的互補性，我們預期在交易交割後 24 個月內，產生超過 5,000 萬美元的年度化協同效益。其中，銷貨成本協同效益預期占總額的 60% 以上，主要由製造基礎設施與供應鏈效率所驅動。營業費用協同效益將由組織效率所帶動，這些效率與交割後對齊並整合業務流程，以及服務相似的客戶群有關。

We currently expect the transaction to close in the second half of calendar year 2022, subject to the approval by NeoPhotonics stockholders' regulatory approvals and other customary closing conditions.

我們目前預期該交易將於2022曆年下半年完成，惟須取得NeoPhotonics股東批准、監管核准及其他慣常交割條件的達成。

Now I'll turn the call back to Alan.

現在我把電話交回給Alan。

Thanks, Wajid. I want to reiterate how excited we are about the benefits of this transaction for our stakeholders. Please turn to Slide 14.

謝謝你，Wajid。我想再次強調，我們對這項交易為我們的利害關係人帶來的效益感到非常振奮。請翻到第14頁投影片。

For customers, the combined company will have a broader portfolio of best-in-class products and technologies. We are committed to strongly invest in innovation and manufacturing capabilities to deliver on their needs today and into the future. We expect this transaction will create new and exciting career opportunities for the combined set of employees as we will be a larger company focused on growing in both existing and in new markets.

對客戶而言，合併後的公司將擁有更廣泛的一流產品與技術組合。我們承諾將大力投資於創新與製造能力，以滿足客戶當前及未來的需求。我們預期此交易將為合併後的員工群體創造嶄新且令人振奮的職涯機會，因為我們將成為一家更大的公司，專注於在既有市場與新市場中成長。

Lastly, as we've discussed, we believe this transaction will create significant value for our stockholders. The transaction contributes to even stronger long-term growth opportunities. We are prepared to quickly execute plans to attain meaningful synergies as we have done in similar prior transactions following the close.

最後，如同我們已討論過的，我們相信此交易將為股東創造可觀價值。該交易有助於帶來更強勁的長期成長機會。我們已準備好在交割完成後迅速執行計畫，以實現具實質意義的協同效益，正如我們在過往類似交易完成後所做的一樣。

With that, we would like to quickly discuss the highlights of our very strong first quarter results we announced this morning and our guidance for the second quarter. First quarter results were above our guidance ranges on all metrics. Our industrial and consumer product lines and our commercial lasers segment revenues were ahead of our prior expectations. Their strong performance more than offset the larger-than-anticipated impact of semiconductor shortages in our Telecom and Datacom product lines.

接下來，我們想快速說明今天早上公布的非常強勁第一季業績重點，以及我們對第二季的展望指引。第一季各項指標的結果均高於我們的指引區間。我們的工業與消費性產品線，以及商用雷射事業部的營收均優於先前預期。其強勁表現，足以抵銷電信與資料通訊產品線中半導體短缺影響超出預期的負面衝擊。

Despite near-term supply challenges, we are seeing a favorable demand environment that we expect will continue throughout fiscal '22. Our markets are driven by powerful long-term trends, and customers have communicated that they are seeing accelerating end market demand for their next-generation solutions. We have been successful in developing differentiated new products and designing them into market-leading customers for their next-generation solutions, many of which are just starting to ramp.

儘管短期供應面臨挑戰，我們仍看到有利的需求環境，並預期將在2022會計年度持續。我們的市場受強勁的長期趨勢所驅動，客戶也表示，他們正看到終端市場對其下一代解決方案的需求正在加速。我們成功開發具差異化的新產品，並將其導入市場領先客戶的下一代解決方案中，其中許多才剛開始放量。

Turning to some more details. While Telecom and Datacom revenue was down quarter-on-quarter, there were a few notable highlights. Terrestrial pump laser revenue was up again from the prior quarter, as expected. As I mentioned on our last call, we are seeing the highest pump sales in many years. Elevated pump shipments frequently have been a leading indicator of future telecom demand. Also, consistent with prior trends, we had strong sequential year-on-year growth in EML revenue in our Datacom chip business driven by strong cloud end market demand.

接著補充一些細節。雖然電信與資料通訊營收較上一季下滑，但仍有幾項值得注意的亮點。如預期所示，陸地泵浦雷射營收較上一季再度成長。如我在上次電話會議中提到的，我們正看到多年來最高的泵浦銷售。泵浦出貨量偏高，往往是未來電信需求的領先指標。此外，延續先前趨勢，在雲端終端市場需求強勁的帶動下，我們資料通訊晶片業務的EML營收呈現強勁的連續年增成長。

Looking to the second quarter, we expect Telecom and Datacom revenue to be up quarter-on-quarter due to increasing supply. However, demand is increasing even faster than supply. Our gap to second quarter demand due to semiconductor and material shortages is expected to be more than $40 million.

展望第二季，我們預期電信與資料通訊營收將因供應增加而較上一季成長。然而，需求成長速度甚至快於供應。由於半導體與材料短缺，我們對第二季需求的缺口預期將超過4,000萬美元。

First quarter industrial and consumer revenue was up strongly quarter-on-quarter due to seasonality in the consumer market. Revenue was up 14% year-on-year to the highest first-quarter level we have ever delivered. We expect second quarter Industrial and Consumer to be down sequentially due to seasonality. On seasonality, we expect this year's demand trend to be more like that of fiscal '20 than that of fiscal '21 since COVID-19 delayed key customer programs last year.

第一季工業與消費性營收因消費市場的季節性因素而較上一季大幅成長。營收年增14%，達到我們歷來交付的最高第一季水準。我們預期第二季工業與消費性業務將因季節性因素而較上一季下滑。就季節性而言，我們預期今年的需求走勢將更接近2020會計年度，而非2021會計年度，因為COVID-19在去年延後了關鍵客戶專案。

Commercial lasers is recovering ahead of our original expectations with strong kilowatt fiber laser sales. We expect second quarter lasers revenue to be up again sequentially.

商用雷射的復甦速度快於我們原先預期，千瓦級光纖雷射銷售強勁。我們預期第二季雷射營收將再度較上一季成長。

With that, I will turn the call over to Wajid to run through the numbers. Wajid?

接下來我把電話交給Wajid，請他帶大家看一下數字。Wajid？

Thank you, Alan. Net revenue for the first quarter was $448.4 million, which exceeded the top end of our guidance range. Net revenue was up 14% sequentially and down 1% year-on-year. GAAP gross margin for the first quarter was 51.8%. GAAP operating margin was 25.8%, and GAAP diluted net income per share was $1.08.

謝謝你，Alan。第一季淨營收為4.484億美元，超出我們指引區間的上緣。淨營收季增14%，年減1%。第一季GAAP毛利率為51.8%。GAAP營業利益率為25.8%，GAAP稀釋後每股淨利為1.08美元。

First quarter non-GAAP gross margin was 55%, which was up 730 basis points sequentially and up 300 basis points year-on-year with a better mix of products and improvements in Optical Communications and Lasers segment gross margins. First quarter non-GAAP operating margin was 35.4%, which increased 1,080 basis points sequentially and 170 basis points year-on-year. The sequential and year-on-year increase was driven primarily by higher gross margins.

第一季非GAAP毛利率為55%，季增730個基點、年增300個基點，主要受惠於產品組合改善，以及光通訊與雷射事業部毛利率提升。第一季非GAAP營業利益率為35.4%，季增1,080個基點、年增170個基點。季增與年增主要由較高的毛利率所帶動。

First quarter non-GAAP operating income was $158.9 million, and adjusted EBITDA was $179.5 million. First quarter non-GAAP operating expenses totaled $87.8 million, or 19.6%, of revenue. SG&A expense was $38.8 million. R&D expense was $49 million. Other income and expense was a net expense of $0.9 million on a non-GAAP basis.

第一季非GAAP營業利益為1.589億美元，調整後EBITDA為1.795億美元。第一季非GAAP營業費用合計8,780萬美元，占營收19.6%。SG&A費用為3,880萬美元。研發費用為4,900萬美元。其他收入與費用在非GAAP基礎下為淨費用90萬美元。

First quarter non-GAAP net income was $135.1 million, and non-GAAP diluted net income per share was $1.79. Our fully diluted share count for the fourth quarter was 75.4 million. As a reminder, we changed our non-GAAP tax calculation methodology last quarter.

第一季非GAAP淨利為1.351億美元，非GAAP稀釋後每股淨利為1.79美元。我們第四季的完全稀釋後股數為7,540萬股。提醒一下，我們在上一季更改了非GAAP稅額計算方法。

On the balance sheet. We ended the quarter with approximately $1.9 billion in cash and short-term investments. During the first quarter, we purchased 1.1 million of our shares for $92 million. To date, we have purchased a total of 4.2 million of our shares for $333 million under our previously announced $700 million share buyback program.

關於資產負債表。本季末我們持有約19億美元的現金及短期投資。第一季期間，我們以9,200萬美元回購110萬股自家股票。截至目前，在先前公布的7億美元庫藏股回購計畫下，我們累計已回購420萬股，總金額為3.33億美元。

Turning to segment details. First quarter Optical Communications segment revenue was $406 million and increased 14% sequentially due to seasonally higher revenues in industrial and consumer. Optical Communications segment gross margin at 55.6% increased 790 basis points sequentially and 310 basis points year-on-year, primarily due to a richer product mix.

接著看各事業部細節。第一季光通訊事業部營收為4.06億美元，因工業與消費性業務的季節性營收較高而季增14%。光通訊事業部毛利率為55.6%，季增790個基點、年增310個基點，主要由於產品組合更佳。

Our first quarter Laser segment revenue at $42.4 million, increased 15% sequentially and 77% year-on-year due to the ongoing recovery from the impact of COVID-19. First quarter Lasers gross margin at 49.1% was up 60 basis points sequentially and 560 basis points year-on-year due to higher volumes.

第一季雷射事業部營收為4,240萬美元，因持續自COVID-19影響中復甦而季增15%、年增77%。第一季雷射毛利率為49.1%，因出貨量增加而季增60個基點、年增560個基點。

Now on to our guidance for the second quarter of fiscal '22, which is on a non-GAAP basis and is based on our assumptions as of today. We expect net revenue for the second quarter of fiscal '22 to be in the range of $435 million to $455 million. This guidance incorporates more than $40 million of unsatisfied demand due to shortages of semiconductors and other materials.

接下來是我們對2022會計年度第二季的指引，係以非GAAP基礎編製，並以我們截至今日的假設為基礎。我們預期2022會計年度第二季淨營收將介於4.35億至4.55億美元。此指引已納入因半導體及其他材料短缺而未能滿足的超過4,000萬美元需求。

Based on this, we project second quarter operating margin to be in the range of 30% and to 32%, and diluted net income per share to be in the range of $1.47 to $1.64. Our non-GAAP EPS guidance for the second quarter is based on a non-GAAP annual effective tax rate of 14.5%, resulting in a tax expense of approximately $20 million at the midpoint. These projections assume an approximate share count of 75.4 million and interest and other income and expense that is a net expense of approximately $1 million.

基於此，我們預估第二季營業利益率將介於30%至32%，稀釋後每股淨利將介於1.47至1.64美元。我們第二季非GAAP EPS指引係以非GAAP年度有效稅率14.5%為基礎，按中位數計算稅費約為2,000萬美元。上述預估假設股數約為7,540萬股，利息及其他收入與費用為淨費用約100萬美元。

With that, I'll turn the call back to Jim to start the Q&A session. Jim?

那麼，我把電話交回給 Jim，開始問答環節。Jim？

Thank you, Wajid. (Operator Instructions) Operator, let's begin the question-and-answer session.

謝謝你，Wajid。(接線員指示) 接線員，我們開始問答環節。

(Operator Instructions) Our first question today comes from Rod Hall from Goldman Sachs.

(接線員指示) 我們今天的第一個問題來自高盛的 Rod Hall。

I guess I wanted to start with the acquisition, Alan. And just there's been a cadence of deals here. You had the Oclaro deal, which of course, didn't end up happening. Now you're doing this one. I mean just curious how you see this landscape. Do you think that there's more consolidation to go for? Obviously, there are other assets out there. Do you feel like you've got a fairly complete portfolio now? I'm just curious kind of how you see the landscape given this announcement. And then I've got a follow-up.

我想先從這次收購談起，Alan。這裡的交易節奏一直在推進。你們之前有 Oclaro 的交易，當然最後沒有成行。現在你們在做這一筆。我只是好奇你如何看待這個產業版圖。你認為還會有更多整併嗎？顯然，市場上還有其他資產。你覺得你們現在的產品組合已經相當完整了嗎？我只是好奇，在這項公告之後，你如何看待整體局勢。然後我還有一個追問。

Thanks, Rod, for the question. Yes. First of all, we're really excited about the -- coming together with NeoPhotonics. I think it fits right in with our strategy. I don't want to speculate on if there's more and more, but I do think we're going to continue to invest both in organic growth for existing markets as well as new markets and do strategic M&A as we look forward. But I think we're focused right now on making sure that the NeoPhotonics acquisition is highly successful, and it gets the results that we've talked about in today's call.

謝謝你，Rod，這個問題。是的。首先，我們對於與 NeoPhotonics 的結合感到非常興奮。我認為這完全符合我們的策略。我不想臆測是否還會有更多交易，但我確實認為，展望未來，我們會持續投資於既有市場的有機成長以及新市場，並在前進過程中進行策略性併購。不過，我們目前的重點是確保 NeoPhotonics 的收購非常成功，並且能帶來我們在今天電話會議中所談到的成果。

Okay. And then on the earnings themselves, the 3D sensing did a lot better, I think, than you even expected. I'm curious what drove that. Are you seeing a lot better share here than you maybe thought you would have back in spring?

好的。那就財報本身而言，3D 感測的表現我認為比你們甚至預期的還要好。我很好奇是什麼驅動了這點。你們是否看到在這裡的市佔比春季時你們原本想的要好很多？

And then I -- also, Wajid, if you could dig into your gross margin comment. You said driven by higher gross margins. I assume as opposed to mix. But could you drill into that a little bit and help us understand is that pricing or what's going on there?

另外我也想問——Wajid，如果你能再深入說明一下你對毛利率的評論。你說是由較高的毛利率所驅動。我猜是相對於產品組合（mix）而言。但你能否再多談一點，幫我們理解這是定價因素，還是其他原因？

Yes, I'll take the question on 3D sensing. As we said in the prepared remarks, we believe that this product cycle is much like it was 2 years ago when there was no delays in the ramp of products for one of our customers, our lead customer.

好的，我來回答 3D 感測的問題。正如我們在事先準備的發言中所說，我們認為這一輪產品週期很像兩年前，當時我們某位客戶——我們的主要客戶——在產品放量（ramp）上沒有任何延遲。

I can't really comment on share. I can only comment on what our customers asked us to ship and produce for them. And we make every possible effort to make sure they want to buy as much as they can from us, and that's what we're continuing to focus on with quality, delivery performance and competitive pricing.

我無法真正評論市佔。我只能就客戶要求我們出貨與生產的內容來評論。我們會盡一切努力，確保他們願意從我們這裡購買越多越好；而我們也會持續專注於品質、交付表現以及具競爭力的定價。

So we're very happy with our first quarter and the results in 3D sensing and expect that continue to do quite well with respect to existing products in 3D sensing as well as the new opportunities for new products and new markets for 3D sensing.

因此，我們對第一季以及 3D 感測的成果非常滿意，並預期在 3D 感測的既有產品上會持續表現良好，同時也會在 3D 感測的新產品與新市場機會方面有不錯的進展。

Wajid, do you want to handle the gross margin comment?

Wajid，你要不要來回答毛利率的評論？

Yes, sure. So as you see, Rod, we've seen increasing gross margin across both segments. And that increase in gross margins has not only been sequential, but it's also been year-over-year. As we noted in our prepared comments, our Lasers business is doing quite well. And the year-over-year gross margin improvement in that part of the business has been driven by higher volumes, which are really helping our manufacturing overhead expenses.

好的，當然。Rod，如你所見，我們在兩個事業部門的毛利率都呈現上升。而且這個毛利率的提升不僅是季對季（sequential），也是年對年（year-over-year）。如同我們在事先準備的評論中提到的，我們的雷射業務表現相當不錯。該業務年對年毛利率的改善主要是由更高的出貨量所驅動，這確實有助於分攤我們的製造間接費用。

And obviously, product mix this quarter played a big hand as well in the better gross margins that we saw versus what we had expected. So it's -- I'd say, it's both of those things coming together.

當然，本季的產品組合也對我們看到的毛利率優於預期起了很大的作用。所以——我會說，這是兩個因素共同作用的結果。

Our next question comes from Alex Henderson from Needham.

我們的下一個問題來自 Needham 的 Alex Henderson。

First off, congratulations to Lumentum on a great acquisition and also to Neo for joining a great company. So I think it's a superb transaction for both companies. Wanted to get a little bit more granularity on what Neo reported here as part of their conference call and this is also their earnings call. And to what extent do you see some overlap on the product lines between the old Oclaro line that you guys have, your coherent products and the -- what kind of success Neo is reporting relative to the ramp of the 400-gig ZR products? And how important was that in your thinking as those new products, obviously, are in the headlines?

首先，恭喜 Lumentum 完成一筆很棒的收購，也恭喜 Neo 加入一家很棒的公司。我認為這對兩家公司都是一筆極佳的交易。我想更細緻地了解一下 Neo 在他們的電話會議（這也是他們的財報電話會議）中所報告的內容。你們如何看待產品線之間的重疊程度：你們既有的 Oclaro 產品線、你們的相干（coherent）產品，以及——Neo 所報告的 400-gig ZR 產品放量進展相對而言的成功？而在你們的思考中，這些新產品的重要性有多高？顯然它們正是媒體焦點。

Thanks, Alex. This is Tim Jenks. First of all, we're very excited about this transaction. The combination will serve our customers very well for all the reasons that we outlined in our prepared remarks.

謝謝你，Alex。我是 Tim Jenks。首先，我們對這筆交易感到非常興奮。如同我們在事先準備的發言中所概述的，這項結合將在各方面更好地服務我們的客戶。

The situation right now for us is that our business is quite strong. We do have headwinds from supply chain. But as we've seen in our current quarter, results are strong and it does reflect the overall supply chain for 400ZR products. The initial deployments have started, a number of customers using our products in theirs as well. And so we think that, that also bodes well going forward for the next quarter and the next year. Again, we're continuing to work all of the issues, as many others in the industry are with supply chain. But all the trends are positive.

就我們目前的情況而言，我們的業務相當強勁。我們確實受到供應鏈的逆風影響。但從我們本季的表現來看，結果依然強勁，並且反映了 400ZR 產品整體供應鏈的狀況。初期部署已經開始，也有多家客戶在其產品中採用我們的產品。因此，我們認為這也為下一季以及明年帶來良好前景。再次強調，我們正持續處理各項問題，就像產業內許多公司一樣面臨供應鏈挑戰。但所有趨勢都是正向的。

And Alex, if I could answer your question about where do the products fit? I think fundamentally, the products that -- and technology that NeoPhotonics brings to Lumentum are very, very complementary: silicon photonics, external cavity, narrow linewidth lasers, all those things. RF drivers and TIAs, all those things are very, very complementary and will fit in quite nicely with the combined portfolio. So we're very excited about the transaction as well. So thanks for the endorsement.

Alex，如果我可以回答你關於產品如何契合的問題：我認為從根本上說，NeoPhotonics 帶給 Lumentum 的產品與技術是高度互補的：矽光子（silicon photonics）、外腔（external cavity）、窄線寬雷射（narrow linewidth lasers）等等。RF 驅動器與跨阻放大器（TIAs）等也都非常互補，並且能很自然地融入合併後的產品組合。所以我們同樣對這筆交易非常興奮。也謝謝你的肯定。

So second question, if I could. You mentioned $40 million worth of supply constraints in the guide, but you didn't say what the supply constraint impact was in the current quarter for either company. Just hoping you could give us some sense of what was the constraint at Neo, what was the constraint at Lumentum in the printed numbers.

那我第二個問題是：你們在財測中提到約 4,000 萬美元的供應限制，但你們沒有說明本季兩家公司在實際公布數字中，供應限制的影響各是多少。希望你們能讓我們了解一下：Neo 的限制是多少、Lumentum 的限制是多少？

Yes. As we went through the quarter, it actually got tougher. And so we had -- it was more than $30 million in Q1. And even with the increased supply of semiconductors during Q2 and the increased output in our Telecom and Datacom business, demand is growing stronger than that increase. And that's what led us to the $40 million gap between demand and supply.

是的。在這一季的進行過程中，情況其實變得更艱難。因此，我們在第一季的缺口超過 3,000 萬美元。即便在第二季半導體供應有所增加、我們在電信與數據通訊業務的產出也有所提升，但需求成長仍然強於這些增量。這就是我們所提到的需求與供給之間 4,000 萬美元缺口的原因。

And as I talk to customers, their outlook is very strong through the balance of the fiscal year. So we've got some work to do to catch up with the demand given the current situation with semiconductors and other materials.

而且當我與客戶交流時，他們對本財年剩餘期間的展望非常強勁。因此，在目前半導體與其他材料的情況下，我們還有一些工作要做，才能追上需求。

Tim, do you want to handle the impact on your September quarter?

Tim，你想談談對你們9月季度的影響嗎？

Sure. The situation we've seen is similar, obviously, not of the same magnitude. Semiconductors is an ongoing challenge. So we had very strong demand, and we're definitely supply constrained, not demand constrained. But that was certainly to the tune of several million dollars of opportunity. But for us, the important thing, we were at the high end of our range, and we regained non-GAAP profitability in the quarter, and we felt quite good about that. But we have the ongoing challenges of semiconductors.

當然。我們看到的情況類似，顯然規模不一樣。半導體一直是個持續的挑戰。所以我們的需求非常強勁，而我們確實是供應受限，不是需求受限。但那確實相當於數百萬美元的機會損失。但對我們而言，重要的是我們處於指引區間的高端，而且本季我們恢復了非GAAP獲利能力，我們對此感覺相當不錯。但我們仍面臨半導體的持續挑戰。

Our next question comes from Samik Chatterjee from JPMorgan.

下一個問題來自摩根大通（JPMorgan）的Samik Chatterjee。

I guess, Alan, if I, just on the surface, look at this deal compared to the Coherent one, which didn't go through, I mean, on the surface, it looks like the messaging with Coherent or the strategic intent with Coherent was to take your technology to newer end markets. And you are looking at a broad base of end markets that were very different from communication.

我想，Alan，如果我只是從表面來看，這筆交易和未能完成的Coherent那筆相比，表面上看起來，當時與Coherent的溝通或策略意圖，是把你們的技術帶到更新的終端市場。而你們當時在看的是一個廣泛的終端市場基礎，且與通訊領域非常不同。

Related to that, NeoPhotonics and the acquisition here seems to be more concentrating your revenues in the communication vertical. So just, I guess, in terms of the question itself, like has there been a change in the intent of where the strategic direction of the company is with M&A? Are you looking to kind of focus more on the communication vertical versus what was more implied in the Coherent transaction about diversifying into newer end markets? And I have a follow-up, please.

與此相關，NeoPhotonics以及這次的收購似乎更把你們的營收集中在通訊這個垂直領域。所以我想就問題本身而言，公司的策略方向在併購（M&A）方面的意圖是否有所改變？你們是否打算更聚焦於通訊垂直領域，而不是像Coherent交易中更暗示的那樣，分散到更新的終端市場？我還有一個追問，謝謝。

Thanks, Samik. First of all, I think, this fits right in with our strategy to be the best possible supplier to our customers. And I think giving us a broad portfolio of products that meet our current customers' needs is step one. And I think it's very exciting that we're going to have both incredible teams be able to get together and accelerate innovation, both in the communications market, as you talked about, but also what we can do outside of the communication market.

謝謝你，Samik。首先，我認為這完全符合我們的策略：成為客戶最好的供應商。我認為，讓我們擁有能滿足現有客戶需求的廣泛產品組合，是第一步。而且我覺得非常令人振奮的是，兩支非常出色的團隊將能夠走到一起、加速創新，不僅是在你提到的通訊市場，也包括我們在通訊市場之外能做的事情。

So I look at this as both bolstering our efforts in communications, but also enabling photonics and get these resources together, enabling the teams to use their capability to look at new markets that we've talked about and be able to accelerate our entrance into those new markets.

所以我把這看作一方面強化我們在通訊領域的投入，另一方面也能推動光子技術，把這些資源整合在一起，讓團隊運用其能力去探索我們談過的新市場，並加速我們進入那些新市場。

So I think this is something -- I've known Tim for over 10 years. We talked on and off. This was the right time for this transaction, and I couldn't be more excited about it given where we are on our strength in transport, their strength in transmission. And the growth opportunities ahead is pretty exciting.

所以我認為這是一件——我認識Tim超過10年了。我們斷斷續續有過交流。現在是進行這筆交易的正確時機，考量到我們在傳輸（transport）方面的優勢、他們在傳送（transmission）方面的優勢，我對此再興奮不過。而且未來的成長機會相當令人期待。

And for my follow-up, if I could just ask. And I don't know if this is more a question for Tim or you. But what was the process in this case? Were there multiple bidders? Was this a bidding process? Or do you -- like were there other -- any other interested parties or like similar to -- just trying to compare the process here to Coherent.

那我追問一下，如果可以的話。我不確定這個問題比較適合問Tim還是你。但這次的流程是怎麼進行的？是否有多個競標者？這是一個競標流程嗎？或者你們——是否有其他——任何其他有興趣的買家？我只是想把這次的流程和Coherent那次做個比較。

Okay. Thanks for that. This is Tim. What I can tell you about that is, I've been in this industry for 2 decades, and we know the industry very well. We know the strategic landscape very well. So the -- what we wanted to do is we wanted to be able to scale our business for the opportunities we face. And in doing that, our Board of Directors as well as our management was very well advised.

好的。謝謝你的提問。我是Tim。我能告訴你的是，我在這個產業已經20年了，我們非常了解這個產業。我們也非常了解策略版圖。所以——我們想做的是，讓我們的業務能夠擴大規模，以把握我們所面臨的機會。在這個過程中，我們的董事會以及管理團隊都獲得了非常充分的專業建議。

We think that this transaction is the right path forward for NeoPhotonics. It really delivers on immediate value to our shareholders. It provides us a larger platform to scale the innovations that we brought to the market as product solutions. And of course, all the details of what transpired will, of course, be published in our proxy shortly.

我們認為這筆交易是NeoPhotonics前進的正確道路。它確實能為股東帶來即時價值。它也為我們提供一個更大的平台，把我們帶到市場上的創新以產品解決方案的形式擴大規模。當然，所有發生過程的細節也將在我們即將發布的委託書（proxy）中公布。

Our next question comes from Simon Leopold from Raymond James.

下一個問題來自Raymond James的Simon Leopold。

I guess I certainly see the logic and the potential for synergies, but there's one key difference in terms of how the 2 companies have operated that I want to get an understanding of the plan here. Specific example I'm talking about is Lumentum's decision to exit some low-margin businesses. So for example, your Datacom transceivers, you focused on chips, and we've seen the margin improvement. Whereas NeoPhotonics has pursued a mission that includes selling ZR and not just laser chips. And so while we don't necessarily know exactly the gross margin implications, it seems contrary to the strategy Lumentum's followed over the last couple of years. So could you help us understand how you're thinking about that particular philosophy and how it may apply to the combined company?

我想我確實看到了其邏輯與協同效應的潛力，但兩家公司在營運方式上有一個關鍵差異，我想了解你們在這裡的計畫。我指的具體例子是Lumentum決定退出一些低毛利業務。例如，你們的Datacom收發器，你們把重心放在晶片上，我們也看到毛利率改善。而NeoPhotonics則追求一個使命，其中包括銷售ZR，而不只是雷射晶片。因此，雖然我們不一定清楚毛利率的確切影響，但這似乎與Lumentum過去幾年所遵循的策略相反。所以你能否幫我們理解，你們如何看待這種特定的理念，以及它可能如何適用於合併後的公司？

Sure. Thanks for the question, Simon. This is Alan. We will kick off the integration planning that we will make decisions about what to do going forward to capture those synergies, number one, but also look at how do we improve the gross margins. And as Wajid talked about, getting $50 million of synergies, of which 60% or more will come from cost of goods sold, I truly believe we'll get that in rapid fashion.

當然。謝謝你的問題，Simon。我是Alan。我們將啟動整合規劃，並就未來要做什麼作出決策，以捕捉那些協同效應，這是第一；同時也會思考如何提升毛利率。正如Wajid提到的，取得5,000萬美元的協同效益，其中60%或更多將來自銷貨成本（COGS），我真的相信我們能很快達成。

So we have not looked at the details of all of the products that they have. I think it's a little bit different with NeoPhotonics because they've got everything that goes into those boxes. So if you look at a ZR, they've got the silicon photonics, they got the RFICs. They've got the external cavity narrow linewidth lasers. And I think with their combined manufacturing and technology together, we can drive gross margins that we'll get more towards our model than where we are today.

所以我們尚未檢視他們所有產品的細節。我認為NeoPhotonics的情況有點不同，因為他們擁有那些盒子裡所需的一切。所以如果你看ZR，他們有矽光子（silicon photonics），也有RFIC。他們還有外腔式窄線寬雷射（external cavity narrow linewidth lasers）。我認為把雙方的製造與技術結合起來，我們可以推動毛利率，使其更接近我們的模式，而不是停留在目前的水準。

So I think it's just an exciting time. As we get through the integration planning, we'll have a more concrete idea of what actions need to take place to drive those synergies and drive improved performance. But I'll tell you, the teams are ready, and I think we'll come out of this extremely well positioned. And our customers are going to be extremely happy as well.

所以我認為這是一個令人振奮的時刻。隨著我們完成整合規劃，我們會更具體地了解需要採取哪些行動來推動協同效應並提升表現。但我可以告訴你，團隊已經準備好了，我認為我們將以極佳的態勢走出這次整合。而我們的客戶也會非常滿意。

Great. And just as a follow-up, you did comment on 3D seasonality being sort of more normal than last year, which makes sense. But I want to get a better understanding of what you're seeing in terms of the market share moves. Because it appears that you've gained some share in this product cycle around the newest models. Just want to make sure that it's not a rising tide floats all boats only, but also some share shifts that you're experiencing.

很好。再追問一下，你確實提到3D的季節性比去年更「正常」，這很合理。但我想更了解你們在市占率變化方面看到什麼。因為看起來你們在這個產品週期、圍繞最新機型，取得了一些市占。我只是想確認，這不只是「水漲船高」而已，而是你們也正在經歷一些市占轉移。

Yes. Thanks, Simon. I think with anything, as our customer -- our lead customer counts on us for new product introductions and new product ramps. They don't tell us what the share is that we get, but I can tell you, we're going to be there for them on this product ramp, on their next product ramp. And if that means that we get more share as new products get introduced, then so be it. And I think that's probably the case here, but I don't know because they don't tell us, and we haven't seen what our competitors have done.

是的。謝謝你，Simon。我想任何事情都是這樣，當我們的客戶——我們的主要客戶——仰賴我們進行新產品導入與新產品放量時，他們不會告訴我們我們拿到的市占是多少，但我可以告訴你，我們會在這次產品放量、以及他們下一次產品放量時都全力支援他們。如果這意味著在新產品推出時我們能拿到更多市占，那就順其自然。我想這裡大概就是這種情況，但我不確定，因為他們不會告訴我們，而且我們也還沒看到競爭對手做了什麼。

I would say that we're extremely focused on being the partner of choice and getting them what they need when they need it at the quality levels they need. And again, giving them no excuses to want to move any business anywhere else. So I think we're extremely well positioned now and into the future with our lead customers, but also with the new market opportunities that we've been talking about. That is starting to become real. And I think over the coming years, it's going to be a significant contribution to our overall business.

我會說，我們極度專注於成為他們首選的合作夥伴，在他們需要的時候，以他們所需的品質水準，提供他們所需要的東西。而且再次強調，讓他們沒有任何理由想把任何業務轉移到其他地方。因此，我認為我們現在以及未來，無論是對我們的主要客戶，還是對我們一直在談的新市場機會，都處於非常有利的位置。這些機會正開始變得具體可見。我認為在未來幾年，這將對我們整體業務做出顯著貢獻。

Our next question comes from Michael Genovese from WestPark Capital.

我們的下一個問題來自 WestPark Capital 的 Michael Genovese。

Great. In Telecom and Datacom, I just wanted to get a better understanding of the products that were constrained and the implications for the rest of the industry. So I'm assuming that it was a very high percentage of that was ROADMs. And so that the ROADMs shipments must have been very low. And I'm wondering if that's why all the system vendors keep talking about footprint builds being pushed out. So can you comment on those questions, please?

很好。在電信與數據通訊方面，我想更清楚了解哪些產品受到供應限制，以及這對產業其他部分的影響。所以我假設其中很高比例是 ROADM。因此 ROADM 的出貨量一定非常低。我想知道這是否就是為什麼所有系統供應商一直在談到建置覆蓋範圍（footprint builds）被延後。能否請你針對這些問題做些評論？

Sure. I mean the shortages are not just 1 or 2 different suppliers, and they do impact more than just ROADMs. But as you surmise, ROADMs and line cards have the heaviest concentration of semiconductors on them. So therefore, getting all of those parts, we need them all to be able to ship a unit, so those are certainly being impacted.

當然。我的意思是，短缺不只是來自 1 或 2 家不同的供應商，而且影響的不僅僅是 ROADM。但如你所推測，ROADM 和線卡（line cards）上半導體的集中度最高。因此，要取得所有那些零件——我們必須全部到齊才能出貨一個單元——所以這些確實受到影響。

But our transmission products are not able to escape some of the shortages as well. So we've been impacted also on some of our transmission products. But I'd say that more than half of it is in the ROADMs and ROADM line cards.

但我們的傳輸產品也無法完全避開部分短缺。所以我們的一些傳輸產品也受到影響。不過我會說，超過一半的影響是在 ROADM 以及 ROADM 線卡上。

Are there any shortages in Datacom?

數據通訊方面有任何短缺嗎？

Well, keep in mind, our Datacom business is a chip business. We pretty much control the entire supply chain from buying a substrate of -- to doing the wafer processing, back-end testing and processing. So I would say no, that -- the Datacom is not impacted by semiconductor supply chain, but is impacted by our ability to ramp our EMLs as fast as the demand for the hyperscalers, that want the latest and greatest speeds in our EML business or EML chips. And so that's what's constraining our Datacom business.

嗯，請記住，我們的數據通訊業務是晶片業務。我們幾乎掌控整個供應鏈，從採購基板——到晶圓製程、後段測試與加工。所以我會說沒有——數據通訊並未受到半導體供應鏈的影響，但受到我們將 EML 產能提升的速度所限制，因為超大規模客戶（hyperscalers）對我們 EML 業務或 EML 晶片所提供的最新、最快速率的需求非常強。因此，限制我們數據通訊業務的就是這一點。

But again -- sorry, I was just going to add to that, that our EML business has -- over the last 5 quarters, has approximately doubled. And so we're continuing to add capacity. And expect that through the first half of the calendar year, the EML business will benefit from the additions we talked about over a year ago, and those are coming online now.

另外——抱歉，我只是想補充，我們的 EML 業務在過去 5 個季度大約翻了一倍。因此我們持續增加產能。並且預期在曆年上半年，EML 業務將受惠於我們一年多前談到的擴產，這些產能現在正陸續上線。

Go ahead, Michael. Ask your second question.

Michael，請繼續。問你的第二個問題。

I just want to ask Tim, since this is my chance. I mean you talked a little bit around these issues, but I just want to ask very directly. So is there a chance for an update on the hyperscale qualifications for your ZR modules? If there's anything to report there.

我想問 Tim，既然這是我的機會。你確實稍微談到這些議題，但我想非常直接地問。所以，關於你們 ZR 模組在超大規模客戶端的認證（qualifications），是否有機會提供更新？如果有任何進展可分享的話。

Sure, happy to. The -- these are ongoing, multiple customers. We're shipping units in small volumes, not in high volumes, and I think those are on track. The major hyperscalers are generally still in process on their source selections beyond their initial source.

當然，很樂意。這些認證正在進行中，涉及多家客戶。我們以小量出貨，不是大量出貨，我認為進度都在軌道上。主要的超大規模客戶通常仍在進行初始供應來源之外的供應商選擇流程。

Perfect. Just congratulations on the deal to all of you, I think, it's a great combination. And I'm looking forward to following it.

太好了。也恭喜各位完成這筆交易，我認為這是很棒的結合。我也期待持續關注後續發展。

Thanks.

謝謝。

Thanks, Michael.

謝謝你，Michael。

(Operator Instructions) Our next question comes from Fahad Najam from MKM Partners.

（接線員指示）我們的下一個問題來自 MKM Partners 的 Fahad Najam。

Alan, I wonder, within your strategy on vertical integration -- because NeoPhotonics, as you mentioned, is significantly more vertically integrated than you are, especially having a very well developed fab for EML lasers. What is your strategy going forward? But you highlight the gross margin savings of $50 million. Are you assuming that you're going to utilize NeoPhotonics' infrastructure and kind of reduce your exposure to your third-party fab and contract manufacturing suppliers? Can you elaborate a little bit more there? And then I have a follow-up question on your earnings.

Alan，我想問，在你們垂直整合策略之下——如你提到的，NeoPhotonics 的垂直整合程度明顯比你們更高，尤其是在 EML 雷射方面擁有非常成熟的晶圓廠（fab）。你們接下來的策略是什麼？你提到毛利率節省 5,000 萬美元。你是否假設會利用 NeoPhotonics 的基礎設施，並在某種程度上降低你們對第三方晶圓廠與委外製造供應商的依賴？能否再多闡述一些？然後我還有一個關於你們獲利的追問。

Sure. Well, first of all, on our EML business, we are vertically integrated as well, and that's within our control to add the capacity and that we've talked about, I think. What NeoPhotonics brings is, again, a complementary set of products that really fit in well with us. We have not started the integration planning. And as we did with Oclaro, we're going to be very thoughtful with respect to what we do, make sure we're supporting our customers and making sure that we are very thoughtful in that integration planning to capture those synergies. But also, as I said earlier, to capitalize on 2 great teams coming together and accelerated innovation.

當然。首先，就我們的 EML 業務而言，我們同樣是垂直整合的，而且擴充產能是在我們可控範圍內，我想我們也談過這點。NeoPhotonics 帶來的是一套互補的產品組合，與我們非常契合。我們尚未開始整合規劃。而且就像我們當初與 Oclaro 的整合一樣，我們會非常審慎地思考要做什麼，確保我們支持客戶，並在整合規劃上非常周全，以實現那些綜效。同時，如我先前所說，也要把握兩個優秀團隊結合、加速創新的機會。

So we -- our 3D sensing is mostly outsourced, as you say, but not our Datacom business. And I think from that perspective, the 3D sensing business is so large, I don't think it would fit into Tim's fab. But we haven't gotten to that stage to figure out how to do that integration planning. Tim, do you have something to add?

所以我們——如你所說，我們的 3D 感測大多是外包的，但我們的數據通訊業務不是。而且我認為從這個角度看，3D 感測業務規模非常大，我不認為它適合放進 Tim 的晶圓廠。但我們還沒到那個階段去弄清楚要如何做整合規劃。Tim，你有要補充的嗎？

Yes. I think with respect to laser diodes, I think, this is also a situation where we have a very, very broad capability now. There are EML lasers, there are DFP lasers, there are DFP lasers that are used in silicon photonics-based transceivers. And then there are devices, such as silicon photonics, modulators, drivers that we do. And all of these becomes a very broad portfolio to enhance the competitive strength for these kind of devices. So again, I think, it's very complementary with very little overlap.

有。我認為就雷射二極體而言，這也是一種情況：我們現在具備非常、非常廣泛的能力。有 EML 雷射，也有 DFP 雷射，還有用於矽光子（silicon photonics）收發器的 DFP 雷射。此外還有我們所做的元件，例如矽光子、調變器（modulators）、驅動器（drivers）。所有這些形成非常廣泛的產品組合，可提升這類元件的競爭實力。所以再次強調，我認為這是高度互補、重疊非常少。

I appreciate the answer. On the earnings element, Wajid, can you comment about the pricing environment? The gross margin is, obviously, very impressive, and product mix contributed to that. But one, are you seeing relatively more disciplined pricing environment out there? And also, are you increasing prices on your products as you incur higher costs?

感謝你的回答。關於獲利的部分，Wajid，你能否評論一下定價環境？毛利率顯然非常亮眼，產品組合也對此有所貢獻。但第一，你們是否看到市場上的定價更為自律？第二，當你們承擔更高成本時，是否也在提高產品價格？

Well, I'd say this, our customers like prices to come down over time, and our prices do come down over time. Our engineering team and manufacturing operations team continue to drive our cost down. And the combined price reductions and cost reductions have led to our gross margins as you see. We have not passed on the increases that we've seen, or the spot buys we've had to make on semiconductors to our customers. And I think they recognize that and value the partnership because we're not in this for next quarter. We're in this for the long term with our customers.

嗯，我會這麼說：我們的客戶希望價格隨時間下降，而我們的價格確實會隨時間下降。我們的工程團隊與製造營運團隊持續推動成本下降。價格下降與成本下降的結合，帶來了你所看到的毛利率。我們並沒有把我們所看到的成本上升，或我們不得不在半導體上進行現貨採購（spot buys）的增加成本轉嫁給客戶。我認為他們也認可這一點，並且重視這種夥伴關係，因為我們不是只為了下一季。我們是以長期的角度與客戶合作。

And I think the combination with NeoPhotonics is a signal to our customers that we are here for them. And the more we are recognized as partners to them, the more business they'll go -- give us and the more growth we'll get. So I think our focus is to be our customers' partner of choice so that they want to give us more and more business. As the supply frees up from the semiconductor area, I think, we're going to come out of this in a great, great position.

而且我認為與 NeoPhotonics 的結合，是向我們的客戶傳達一個訊號：我們會在這裡支持他們。而我們越被視為他們的合作夥伴，他們就越會把更多業務交給我們，我們也就能獲得更多成長。因此，我認為我們的重點是成為客戶首選的合作夥伴，讓他們願意把越來越多的業務交給我們。隨著半導體領域的供應逐步釋放，我認為我們將以非常、非常有利的姿態走出這段期間。

Our next question comes from Meta Marshall from Morgan Stanley.

下一個問題來自摩根士丹利的 Meta Marshall。

Great. Appreciate kind of the commentary about 3D sensing following more of the 2020 pattern than the -- sorry, the 2019 versus 2020 pattern. But just given kind of the delays that they're having with their whole supply chain, I just wanted to get a sense of are they telling you to kind of pause any orders? Or just they would like to accumulate as much inventory as possible, just given some of the delays on their part.

很好。感謝你們對 3D 感測更像 2020 年模式、而不是——抱歉，是 2019 年對比 2020 年模式——的評論。但考量到他們整個供應鏈目前面臨的延遲，我想了解一下：他們是否有告訴你們要暫停任何訂單？或者他們只是希望在他們那邊延遲的情況下，盡可能累積更多庫存？

And then second question, you spoke a lot about kind of going into new markets with NeoPhotonics and -- or with the combination. I'm just getting a sense of do you feel like you have some of those customer relationships today or where it would kind of take for means of those customer relationships along with the products?

第二個問題，你們談了很多關於透過 NeoPhotonics——或透過這次結合——進入新市場。我想了解的是：你們覺得目前已經擁有其中一些客戶關係了嗎？還是說需要透過哪些方式，才能把那些客戶關係連同產品一起建立起來？

Okay. Yes. This is Chris. I'll get started on it and then Alan will chime in. In terms of 3D sensing seasonality, I mean, I think that we're not being told to slow down. We're seeing very regular order flow from customers. And again, we expect the seasonality to be like 2 years ago, and we're not seeing anything from order trend that would contradict that.

好的。是的。我是 Chris。我先開始回答，然後 Alan 會補充。就 3D 感測的季節性而言，我的意思是，我認為我們並沒有被要求放慢腳步。我們看到客戶的下單流量非常規律。而且再次強調，我們預期季節性會像兩年前一樣，從訂單趨勢來看，我們也沒有看到任何與此相矛盾的跡象。

In terms of new markets, we've got a couple of ways we're attacking new markets, right? We have existing customers that need more and diverse technologies from us. So for example, we've been talking about for several quarters of being designed in and continuing to win design wins in LiDAR and industrial sensing, if you will, with our VCSEL array chips. As well, we view some of the technology coming from this acquisition being very applicable in that space. The external cavity tunable laser is a very unique technology that can also be used in areas like LiDAR as well as in satellite communications and other markets.

至於新市場，我們有幾種方式在切入新市場，對吧？我們現有的客戶需要我們提供更多元、更多樣的技術。例如，我們已經連續好幾個季度在談，透過我們的 VCSEL 陣列晶片，在 LiDAR 與工業感測等領域被導入設計，並持續取得設計導入（design win）。同時，我們也認為這次收購帶來的一些技術在該領域非常適用。外腔可調式雷射是一項非常獨特的技術，也可用於 LiDAR，以及衛星通訊和其他市場等領域。

So we view it both as a technology toolkit to add to our existing customer relationships, where we only -- as part of the puzzle. As well as when you take the toolkit together, it certainly enables us to have a more compelling value proposition when we walk in and meet a new customer for the first time and say, look at what we can do together. So overall, it's a very much a win-win in existing markets as well as the opportunity to pursue new markets.

因此，我們把它視為一套技術工具箱，用來加深我們既有的客戶關係——在這些關係中，我們過去只扮演拼圖中的一部分。同時，當你把這套工具箱整合在一起時，確實能讓我們在第一次拜訪新客戶時，提出更具吸引力的價值主張，並說：看看我們可以一起做到什麼。總體而言，這在既有市場是雙贏，同時也帶來追求新市場的機會。

We have time for one more question, which comes from Richard Shannon from Craig-Hallum.

我們還有時間再問一個問題，來自 Craig-Hallum 的 Richard Shannon。

My first one is both for Alan and Tim on the deal here. Do you see any potential antitrust issues? And I specifically refer to Coherent. Both companies have a position in a fairly oligopolistic market. So I want to get your take on that one first.

第一個問題是問 Alan 和 Tim，關於這筆交易。你們是否看到任何潛在的反托拉斯問題？我特別指的是 Coherent。兩家公司在一個相當寡占的市場中都占有一席之地。所以我想先聽聽你們對這點的看法。

Sure, Richard. I'll give you my perspective, and Tim can chime in. As I said, though, we believe the products are very, very complementary. Their external cavity narrow linewidth tunable laser is very differentiated from anything we do. And I think as you go through silicon photonics and RF drivers and TIAs and things like that, very, very complementary. And so we've had a lot of advice getting up to this point in time from advisers, and wouldn't be going into this merger agreement if we weren't confident we would get through all the regulatory approvals.

當然，Richard。我先分享我的觀點，Tim 也可以補充。如我所說，我們相信雙方產品非常、非常互補。他們的外腔窄線寬可調式雷射，與我們所做的任何產品都非常不同、差異化明顯。而且當你再看矽光子、RF 驅動器、TIA 等等，都是非常、非常互補。因此，我們在走到目前這一步的過程中，已從顧問那裡獲得大量建議；如果我們沒有信心能通過所有監管核准，就不會簽訂這份合併協議。

Tim, do you have anything to add?

Tim，你有什麼要補充的嗎？

Well, Richard, I appreciate the question. I think the -- all of the kind of deep technology products that Lumentum offers or the NeoPhotonics offers, actually, when it comes down to what customers buy, there actually is a surprisingly small amount of direct overlap. And I think that applies to the different types of lasers that we each provide as well. And I think that will serve us well for the purposes of being a very strong competitor going forward. But as Alan said, we've looked at this pretty hard, and we feel actually quite good about it. So thanks.

Richard，我很感謝這個問題。我認為——Lumentum 提供的各種深度技術產品，或 NeoPhotonics 提供的產品——實際上回到客戶購買的內容來看，直接重疊的部分出乎意料地少。我認為這也同樣適用於我們各自提供的不同類型雷射。而我認為這將有助於我們在未來成為非常強勁的競爭者。但如 Alan 所說，我們已經非常仔細地評估過，我們其實對此相當有信心。所以謝謝。

I'm afraid we have no time for any further questions. I will now hand back to Alan Lowe to conclude today's conference call.

很抱歉，我們沒有時間再回答更多問題了。我現在把時間交回給 Alan Lowe，為今天的電話會議作結。

Thank you, Emily. I want to reiterate how excited we are about the benefits of this transaction we announced this morning for all of our stakeholders, and I look forward to welcoming the NeoPhotonics team to Lumentum. I'm eager to see the creativity and innovation the combined companies will bring to the market. I would like to thank everyone for attending. And this concludes our call for today. Thank you.

謝謝你，Emily。我想再次強調，我們對於今天早上宣布的這筆交易將為所有利害關係人帶來的效益感到非常振奮，也期待歡迎 NeoPhotonics 團隊加入 Lumentum。我也很期待看到兩家公司合併後將為市場帶來的創意與創新。我要感謝各位的出席。今天的電話會議到此結束。謝謝。

Thank you, everyone for joining us today. As Alan said, this now concludes your conference call, so please now disconnect your lines. Have a lovely day, everyone.

謝謝各位今天加入我們。如 Alan 所說，電話會議現在結束，請各位掛斷線路。祝各位有美好的一天。