Lumentum Holdings Inc. (LITE) 2021 Q3 法說會逐字稿

Good day, everyone, and welcome to the Lumentum Holdings Third Quarter Fiscal Year 2021 Earnings Call. (Operator Instructions) Please also note, today's event is being recorded.

各位好，歡迎參加 Lumentum Holdings 2021 會計年度第三季財報電話會議。（接線員指示）另請注意，今天的活動將被錄音。

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 Third Quarter Fiscal Year 2021 Earnings Call. This is Jim Fanucchi from Darrow Associates, assisting Lumentum with its Investor Relations.

謝謝，接線員。歡迎參加 Lumentum 2021 會計年度第三季財報電話會議。我是 Darrow Associates 的 Jim Fanucchi，協助 Lumentum 的投資人關係事務。

Joining the call today from the company's 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.

今天與會的公司管理團隊成員包括：總裁暨執行長 Alan Lowe；財務長 Wajid Ali；以及策略與企業發展資深副總裁 Chris Coldren。

Today's call will include forward-looking statements, including statements regarding the markets in which we operate and our position in such markets; the impact of COVID-19 and responsive actions thereto 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.

今天的電話會議將包含前瞻性陳述，包括關於我們所營運市場及我們在該等市場中的地位；COVID-19 及相關因應行動對我們業務的影響，以及在此方面持續存在的不確定性；我們產品與技術、我們的市場、市場機會與客戶的趨勢與預期；以及我們預期的財務表現，包括我們的財測指引，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, including the company's quarterly report on Form 10-Q for the fiscal quarter ended April 3, 2021, which the company expects to file later today.

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）提交文件中所述的風險因素，包括公司截至 2021 年 4 月 3 日止會計季度的 Form 10-Q 季報，公司預計將於今日稍晚提交。

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.

本次電話會議中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.

另請注意，除非另有說明，本次電話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 GAAP 編製財務資訊的替代或優於 GAAP 財務資訊。

Lumentum's press release with the third quarter fiscal 2021 results and accompanying supplemental slides are available on its website at www.lumentum.com under the Investors section and includes additional details about our non-GAAP financial measures and a reconciliation between our historical GAAP and non-GAAP results.

Lumentum 關於 2021 會計年度第三季業績的新聞稿及隨附補充投影片已公布於其網站 www.lumentum.com 的 Investors（投資人）專區，並包含我們非 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。

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

現在我將把電話會議交給 Alan 發表評論。

Thank you, Jim. Good morning, everyone.

謝謝你，Jim。各位早安。

I want to first say our thoughts and prayers are with everyone affected by the continuing COVID-19 pandemic. While vaccinations and case rates are declining in the United States and a few other countries, in many places around the world, the situation is not good. What is happening in India is absolutely heartbreaking. Again, our thoughts are with everyone affected.

首先，我想說我們的思念與祈禱與所有受持續 COVID-19 疫情影響的人同在。雖然美國及少數其他國家的疫苗接種與病例數正在下降，但在世界許多地方，情況仍不樂觀。印度正在發生的事情令人心碎。再次，我們的心與所有受影響的人同在。

Turning to our business. Our third quarter results highlight a product portfolio increasingly rich in new and differentiated products and aligned with favorable long-term multiyear market trends. Revenue from key new product lines that position us well for long-term growth were each up by double-digit percentages year-on-year. These include indium phosphide-based coherent components and modules, next-generation contentionless MxN ROADMs, high-speed EMLs and 3D sensing lasers. Non-GAAP gross margin expanded by 440 basis points year-on-year driven by continuous improvements in our operations and product mix.

回到我們的業務。我們第三季的結果凸顯出我們的產品組合愈發豐富，包含更多全新且具差異化的產品，並與有利的長期多年期市場趨勢一致。能讓我們在長期成長上具備良好定位的關鍵新產品線，其營收年增率皆達雙位數百分比。這些產品包括：以磷化銦為基礎的相干元件與模組、下一代無阻塞（contentionless）MxN ROADM、高速 EML，以及 3D 感測雷射。非 GAAP 毛利率年增 440 個基點，主要受惠於我們營運的持續改善與產品組合的變化。

The accelerating transition to digital and virtual approaches in all aspects of work and life is driving staggering amounts of data in the world's networks and cloud data centers. The proliferation of 5G wireless will remove bandwidth bottlenecks at the edge of the network and drive even more bandwidth in the core networks and cloud data centers.

在工作與生活各層面加速轉向數位化與虛擬化的方法，正推動全球網路與雲端資料中心產生驚人的資料量。5G 無線的普及將消除網路邊緣的頻寬瓶頸，並在核心網路與雲端資料中心帶動更多頻寬需求。

The computer and machine vision revolutions are in their early days, and we expect 3D sensing and LiDAR capabilities will expand to many more applications in multiple markets. These include augmented and virtual reality, 3D machine vision for industrial applications, frictionless and contactless biometric security and access control and automotive and delivery vehicle applications.

電腦視覺與機器視覺革命仍處於早期階段，我們預期 3D 感測與 LiDAR 能力將擴展至多個市場的更多應用。這些應用包括擴增實境與虛擬實境、工業應用的 3D 機器視覺、無摩擦與非接觸式的生物辨識安全與門禁控制，以及汽車與配送車輛應用。

Laser-based material processing is critical to the manufacturing of the devices that enable the digital transformation and transition to 5G wireless and electric vehicle and energy storage. These multiyear trends, combined with our product and technology leadership positions, bode well for us over the long term.

以雷射為基礎的材料加工，對於製造支撐數位轉型、邁向 5G 無線，以及電動車與儲能的裝置至關重要。這些多年期趨勢，加上我們在產品與技術上的領先地位，對我們的長期發展十分有利。

Recent discussions with market-leading customers gives me optimism. Customers have communicated that they are seeing growing end market demand for their next-generation solutions where we have a wide range of design wins with highly differentiated products. Now it is about translating this growing end market demand into shipment and revenue.

近期與市場領導客戶的討論讓我更為樂觀。客戶表示，他們正看到終端市場對其下一代解決方案的需求成長，而我們以高度差異化產品在其中取得廣泛的設計導入（design win）。接下來的重點是把這股終端市場需求成長轉化為出貨與營收。

On this point, like others, we are seeing headwinds that may moderate near-term market growth in telecom and 5G-related components for the remainder of this calendar year. We believe the telecom and 5G components market will reaccelerate midway through our fiscal year '22. These views are driven by the combination of a tight supply of critical semiconductors that we and our customers depend on, customer inventory build in anticipation of strong end market demand and potential delays in deployments in certain geographies more impacted by COVID-19. We expect the lasers market recovery to continue and our business to return to pre-pandemic levels by the middle of fiscal '22.

在這一點上，和其他公司一樣，我們看到一些逆風，可能在今年剩餘期間使電信與 5G 相關元件的短期市場成長趨緩。我們認為電信與 5G 元件市場將在我們 2022 會計年度中期重新加速。這些觀點源自多項因素的組合：我們與客戶所依賴的關鍵半導體供應緊俏、客戶為因應強勁終端需求而建立庫存，以及在某些受 COVID-19 影響較大的地區可能出現部署延遲。我們預期雷射市場復甦將持續，並且我們的業務將在 2022 會計年度中期回到疫情前水準。

In 3D sensing, we believe the net impact of certain customer design decisions will reduce the overall global market for 3D sensing lasers in fiscal '22 by approximately 20% to 25%. We expect laser-based sensing to expand to more applications, customers and markets in fiscal '22 and '23, setting the stage for reacceleration of market growth in fiscal '23.

在 3D 感測方面，我們認為某些客戶設計決策的淨影響，將使 2022 會計年度全球 3D 感測雷射的整體市場規模約縮減 20% 至 25%。我們預期在 2022 與 2023 會計年度，雷射式感測將擴展至更多應用、客戶與市場，為 2023 會計年度市場成長重新加速奠定基礎。

As well, our product road maps include new designs for the future where we integrate additional functionality to help customers further reduce size and their cost of incorporating 3D sensing capabilities while allowing us to capture more dollar content over time.

此外，我們的產品藍圖也包含面向未來的新設計，我們將整合更多功能，協助客戶進一步縮小尺寸並降低導入 3D 感測能力的成本，同時讓我們能隨時間推進取得更高的單機價值（dollar content）。

At this time, putting these market trends, supply constraints and customer forecasts together, we expect our revenue for the first half of fiscal '22 to be down approximately 5% relative to the first half of fiscal '21. These near-term external market headwinds do not diminish my optimism around our long-term multiyear market outlook, our product portfolio and design wins and the positive changes in our business model and the industry over the past several years. I believe the future continues to be very bright at Lumentum.

此時，綜合這些市場趨勢、供應限制與客戶預測，我們預期 2022 會計年度上半年營收將較 2021 會計年度上半年下降約 5%。這些短期外部市場逆風並不會削弱我對我們長期多年期市場展望、產品組合與設計導入，以及過去數年我們商業模式與產業正向變化的樂觀。我相信 Lumentum 的未來依然非常光明。

Turning to capital allocation. We are disappointed the Coherent transaction didn't turn out as we had initially hoped. We continue to believe strategic M&A will be a value creator for Lumentum over the long run. We will be thoughtful in our approach and timing. That said, we believe very strongly in our organic opportunities for value creation.

接著談資本配置。我們對 Coherent 交易未能如最初所希望的結果感到失望。我們仍相信，從長期來看，策略性併購將為 Lumentum 創造價值。我們會在方法與時機上審慎行事。儘管如此，我們也非常堅信自身內生成長（organic）所帶來的價值創造機會。

From a capital allocation standpoint, after analyzing alternatives, we believe investing in our own stock is currently our best opportunity. As such, Lumentum's Board of Directors has authorized a share buyback program for up to $700 million over the next 2 years.

就資本配置而言，在分析各種替代方案後，我們認為投資於自家股票目前是我們最好的機會。因此，Lumentum 董事會已核准一項股票回購計畫，在未來 2 年內最多回購 7 億美元。

Now on to more details about our third quarter. Within Telecom and Datacom, revenue from indium phosphide-based coherent components and modules was up 28% year-on-year after adjusting for the extra week of the recent third quarter. We had strong ROADM revenue with record contentionless MxN sales. These products are increasing in our revenue mix due to their incorporation in our customers' latest systems, which they are just starting to ramp. The average selling price of these advanced ROADMs are significantly higher than the lower port count devices. This will help us accelerate revenue growth as new network deployments increase over the coming several years.

接下來提供第三季更多細節。在電信與數據通訊（Telecom and Datacom）方面，若調整近期第三季多出的一週，以磷化銦為基礎的相干元件與模組營收年增 28%。我們的 ROADM 營收表現強勁，無阻塞 MxN 的銷售創下新高。由於這些產品被納入客戶最新系統且正開始放量，其在我們營收組合中的占比正在提升。這些先進 ROADM 的平均銷售價格顯著高於較低埠數的裝置。隨著未來數年新網路部署增加，這將有助於我們加速營收成長。

In China, we are already designed into every major network equipment manufacturer or NEM with our MxN or high port count ROADMs, On our last call, we highlighted production shipments of MxN ROADMs to our largest Western NEM customer. And in the third quarter, we started production shipments to our next largest NEM customer in the West. We are designed in or in final qualification stages with many other customers with our latest advanced ROADMs.

在中國，我們的 MxN 或高埠數 ROADM 已導入每一家主要網路設備製造商（NEM）。在上一次電話會議中，我們強調已向我們最大的西方 NEM 客戶進行 MxN ROADM 的量產出貨。而在第三季，我們開始向西方第二大 NEM 客戶進行量產出貨。我們的最新先進 ROADM 也已在許多其他客戶中完成設計導入，或正處於最終認證階段。

Revenue from EML chips was up more than 40% year-on-year, again adjusting for the extra week in the recent third quarter. These products serve the cloud data center market, which is increasingly transitioning to 200 and 400 gig speeds. At these higher speeds, our products are highly differentiated. We expect this differentiation will drive market share gains with nonvertically integrated and vertically integrated transceiver suppliers. We expect our growth will accelerate as cloud operators continue their transitions to higher speeds.

EML 晶片營收年增超過 40%，同樣已調整近期第三季多出的一週。這些產品服務於雲端資料中心市場，而該市場正加速轉向 200G 與 400G 速度。在這些更高速度下，我們的產品具高度差異化。我們預期這項差異化將推動我們在非垂直整合與垂直整合的收發器供應商中取得市占率提升。隨著雲端營運商持續轉向更高速度，我們預期成長將加速。

Underscoring this, during the third quarter, we received $90 million of orders for EMLs primarily from web-scale cloud operators and customers serving them seeking to secure our production output. This backlog will be delivered over multiple quarters as we are capacity constrained on EMLs. Our previously highlighted production capacity expansion is tracking well and will come online later this calendar year for significant increased output starting in the second half of fiscal '22.

為此作為佐證，在第三季期間，我們收到 9,000 萬美元的 EML 訂單，主要來自超大規模（web-scale）雲端營運商及為其服務、希望鎖定我們產能輸出的客戶。由於我們在 EML 方面受產能限制，這些積壓訂單將在多個季度內交付。我們先前提到的產能擴充進展順利，將於今年稍晚上線，並在 2022 會計年度下半年開始帶來顯著的產出提升。

Due to continued delays in 5G fronthaul deployments in China, our third quarter DML revenue was significantly below year ago levels and fourth quarter DML sales are expected to be down by more than $20 million year-on-year. At this time, we expect 5G fronthaul deployments could resume this summer. This timing would drive increased demand for our products towards the middle of fiscal '22 once customers ramp up and burn through existing inventory.

由於中國 5G 前傳部署持續延遲，我們第三季 DML 營收顯著低於去年同期水準，且第四季 DML 銷售預期將較去年同期減少超過 2,000 萬美元。目前我們預期 5G 前傳部署可能於今年夏季恢復。此時點將在客戶開始放量並消化既有庫存後，於 2022 會計年度中期左右帶動我們產品需求增加。

Looking to the fourth quarter, we expect Telecom and Datacom revenue to be up quarter-on-quarter.

展望第四季，我們預期電信與數據通訊營收將較上一季成長。

Third quarter industrial and consumer revenue was up year-on-year due to increased dollar content and higher volumes and declined quarter-on-quarter, as expected, due to seasonality. In the fourth quarter, we expect industrial and consumer to be down sequentially due to normal 3D sensing seasonality but up by double-digit percentage year-on-year. Additionally, we have begun mass production of new laser chip designs for upcoming major customer new products.

第三季工業與消費性營收因單位美元含量提升與出貨量增加而較去年同期成長，並如預期因季節性因素而較上一季下滑。第四季，我們預期工業與消費性業務將因正常的 3D 感測季節性而呈現季減，但年增將達雙位數百分比。此外，我們已開始針對即將推出之主要客戶新產品，量產新款雷射晶片設計。

We recently had an important Android customer launch a mobile phone with time-of-flight 3D sensing camera capabilities enabled by our lasers. This is a notable design win as this customer is a large and leading supplier of camera components, and their features frequently proliferate to much higher-volume Android manufacturers.

我們近期有一位重要的 Android 客戶推出一款手機，其具備由我們雷射所支援的飛行時間（ToF）3D 感測相機功能。這是一項值得關注的設計導入成果，因為該客戶是大型且領先的相機元件供應商，其功能特性經常擴散至出貨量更大的 Android 製造商。

During the third quarter, we announced industry-leading advancements in VCSEL technology that position us well for future applications in the industrial and automotive markets. For example, we announced high-power, high-efficiency VCSEL arrays, leveraging industry-leading 5 and 6 junction design. These multi-junction arrays are of particular interest to the automotive and LiDAR markets. They have strong traction in solutions for autonomous vehicles, including in major retailers who are looking to deploy fleets of autonomous delivery vehicles. As well, we continue to receive design-ins and initial production orders from other auto LiDAR and access control customers.

在第三季期間，我們宣布了業界領先的 VCSEL 技術進展，使我們在未來工業與車用市場應用上具備良好定位。例如，我們宣布了高功率、高效率的 VCSEL 陣列，採用業界領先的 5 與 6 接面設計。這些多接面陣列特別受到車用與 LiDAR 市場關注。它們在自動駕駛車輛解決方案中具備強勁動能，包括一些主要零售商正尋求部署自動駕駛配送車隊。此外，我們也持續收到其他車用 LiDAR 與門禁控制客戶的設計導入與初期量產訂單。

Turning to commercial lasers. In the third quarter, we had a significant increase in kilowatt fiber laser sales after 4 quarters of decline. Historically, during market downturns, macro material processing was amongst the slowest segments to recover, and we are now cautiously optimistic that we have seen the worst of the impact of COVID-19 in this segment. We expect fourth quarter lasers revenue to be up quarter-on-quarter.

接著談商用雷射。第三季在連續 4 季下滑後，我們的千瓦級光纖雷射銷售大幅增加。歷史上，在市場下行期間，宏觀材料加工通常是復甦最慢的領域之一；我們目前審慎樂觀地認為，在此領域中 COVID-19 的影響最嚴重階段可能已過。我們預期第四季雷射營收將較上一季成長。

Throughout my remarks, I've highlighted that our markets are driven by strong long-term trends and that we have invested heavily in differentiated new products, technologies and customer programs. With our latest products, we have secured key design wins and are on track for more with market-leading customers. Our product mix is becoming richer in these new products as customers are starting to ramp shipments of their next-generation solutions. We are seeing some nearer-term external factors that will moderate industry growth for the next few quarters but these don't diminish our long-term market outlook.

在我的談話中，我已強調我們的市場受強勁的長期趨勢驅動，且我們已在差異化的新產品、技術與客戶專案上投入大量資源。憑藉最新產品，我們已取得關鍵設計導入成果，並正按計畫與市場領先客戶取得更多成果。隨著客戶開始放量出貨其下一代解決方案，我們的產品組合正逐步提高這些新產品的比重。我們看到一些較短期的外部因素將在未來幾季抑制產業成長，但這些因素不會削弱我們對長期市場前景的看法。

Before handing it over to Wajid to review the numbers, I want to once again thank and acknowledge all of our employees around the world for their hard work and contributions. Our employees are absolutely the company's greatest asset. I would also like to thank our customers, suppliers and shareholders for their continued support and partnership during these challenging times.

在交由 Wajid 檢視數字之前，我想再次感謝並肯定我們全球所有員工的辛勤工作與貢獻。員工絕對是公司最重要的資產。我也要感謝我們的客戶、供應商與股東在這段充滿挑戰的時期持續給予支持與合作。

With that, I'll hand it over to Wajid.

接下來我把時間交給 Wajid。

Thank you, Alan. Good morning, everyone.

謝謝你，Alan。各位早安。

Turning to the third quarter's numbers. Net revenue for the third quarter was $419.5 million, which was down 12% sequentially and up 4% year-on-year. Out of an abundance of caution, we deferred $14.8 million of revenue due to delays in 5G fronthaul deployments in China.

接著看第三季的數字。第三季淨營收為 4.195 億美元，較上一季下滑 12%，較去年同期成長 4%。出於審慎考量，因中國 5G 前傳部署延遲，我們遞延認列 1,480 萬美元營收。

However, despite the lower revenue, and due to the strength of our financial model, we achieved approximately 50% non-GAAP gross margin and strong non-GAAP operating margin and EPS, which both were within our guidance ranges. GAAP gross margin for the third quarter was 44.1%, GAAP operating margin was 63.6% and GAAP diluted net income per share was $2.85. GAAP results include the impact of the $217.6 million we received in connection with the termination of the Coherent transaction.

然而，儘管營收較低，憑藉我們財務模型的強韌性，我們仍達成約 50% 的非 GAAP 毛利率，以及強勁的非 GAAP 營業利益率與每股盈餘（EPS），兩者皆落在我們的財測區間內。第三季 GAAP 毛利率為 44.1%，GAAP 營業利益率為 63.6%，GAAP 稀釋後每股淨利為 2.85 美元。GAAP 結果包含我們因 Coherent 交易終止而收到的 2.176 億美元之影響。

Third quarter non-GAAP gross margin was 49.9%, which was down 350 basis points sequentially, as expected, but up 440 basis points year-on-year due to our improving model with a better mix of products and lower relative manufacturing costs. The sequential decline relates to the seasonal change in product mix and volumes, while the year-on-year growth was driven by improved gross margins in the Optical Communications segment.

第三季非 GAAP 毛利率為 49.9%，如預期較上一季下滑 350 個基點，但因產品組合改善與相對製造成本降低，使我們的模型持續優化，故較去年同期提升 440 個基點。季減主要與產品組合與出貨量的季節性變化有關；年增則由光通訊事業部毛利率改善所帶動。

Third quarter non-GAAP operating margin at 27.9% decreased 760 basis points sequentially but increased 290 basis points year-on-year. The sequential decline was driven by the expected gross margin decline and increase in operating expenses quarter-on-quarter. The year-on-year increase was driven by the gross margin improvement year-on-year.

第三季非 GAAP 營業利益率為 27.9%，較上一季下降 760 個基點，但較去年同期增加 290 個基點。季減主要由如預期的毛利率下滑以及營業費用季增所致；年增則由毛利率年增改善所帶動。

Third quarter non-GAAP operating expenses totaled $92.1 million or 22% of revenue. SG&A expense was $40.8 million. R&D expense was $51.3 million. The sequential increase in operating expenses was primarily driven by the extra week of the 14-week quarter and the annual reset of benefits rates and payroll tax that occurs at the beginning of the calendar year.

第三季非 GAAP 營業費用合計為 9,210 萬美元，約占營收 22%。銷售、一般及管理（SG&A）費用為 4,080 萬美元；研發（R&D）費用為 5,130 萬美元。營業費用的季增主要由於本季為 14 週、較多出一週，以及每年於曆年年初發生的福利費率與薪資稅重設所致。

Third quarter non-GAAP net income was $110.6 million. This includes $0.5 million of net interest expense and $6 million of tax expense. Other income and expense was a net expense of $0.5 million as interest income declined to levels lower than our expense due to lower interest rates on our cash and short-term investments.

第三季非 GAAP 淨利為 1.106 億美元，其中包含 50 萬美元的淨利息費用與 600 萬美元的所得稅費用。其他收益與費用為淨費用 50 萬美元，原因是由於我們現金與短期投資的利率下降，利息收入下滑至低於利息費用的水準。

Non-GAAP diluted net income per share was $1.40 based on a fully diluted share count of 79.2 million.

非 GAAP 稀釋後每股淨利為 1.40 美元，係以完全稀釋後股數 7,920 萬股計算。

On the balance sheet. We ended the quarter with approximately $2.1 billion in cash and short-term investments, up $354 million quarter-on-quarter, including the $218 million Coherent transaction termination fee paid to us. We have $1.5 billion in aggregate principal convertible notes and no term debt.

就資產負債表而言，本季期末我們持有約 21 億美元的現金與短期投資，較上一季增加 3.54 億美元，其中包含 Coherent 交易終止費支付給我們的 2.18 億美元。我們有合計本金 15 億美元的可轉換公司債，且沒有定期借款。

As Alan mentioned, Lumentum's Board of Directors has authorized a share buyback program of up to $700 million over the next 2 years. Over the past 12 months, our cash balance has increased by more than $600 million, and we are confident in our future long-term outlook. Given relative valuations in the industry, we believe this is a good use of our growing cash.

如 Alan 所提，Lumentum 董事會已核准一項在未來 2 年內最高可達 7 億美元的庫藏股回購計畫。過去 12 個月，我們的現金餘額增加超過 6 億美元，且我們對未來長期展望充滿信心。考量產業相對估值，我們認為這是運用我們持續成長現金部位的良好方式。

Now turning to segment details. Third quarter Optical Communications segment revenue at $387.9 million decreased 14% sequentially due to seasonally lower revenues in Telecom and Datacom and industrial and consumer and the deferred 5G-related revenue I discussed earlier. Optical Communications segment revenue was up 8% year-on-year due to the extra week in the quarter and higher industrial and consumer revenues due to the increased dollar content and adoption of 3D sensing and consumer electronic devices.

接著說明各事業部門細節。第三季光通訊事業部營收為 3.879 億美元，較上一季下滑 14%，主要因電信與數據通訊以及工業與消費性業務營收季節性走低，並包含我先前提到的遞延認列之 5G 相關營收。光通訊事業部營收較去年同期成長 8%，主要因本季多出一週，以及工業與消費性營收因單位美元含量提升、3D 感測導入與消費性電子裝置採用增加而上升。

Optical Communications segment gross margin at 50.1% decreased 370 basis points sequentially primarily due to lower industrial and consumer in the revenue mix but increased 510 basis points year-on-year due to a more favorable revenue mix with newer and more profitable products and the benefits from operational improvements.

光通訊事業部毛利率為 50.1%，較上一季下降 370 個基點，主要因營收組合中工業與消費性占比降低；但較去年同期提升 510 個基點，原因是營收組合更有利（新產品占比提高且獲利性更佳），並受惠於營運改善。

Our Lasers segment revenue at $31.6 million increased 6% sequentially due to the ongoing recovery from the impact of COVID-19 but is 27% down year-on-year as the recovery isn't complete.

我們雷射事業部營收為 3,160 萬美元，因持續自 COVID-19 影響中復甦而較上一季成長 6%，但由於復甦尚未完全，較去年同期仍下滑 27%。

Third quarter Lasers gross margin was down 30 basis points sequentially at 47.2% and down 250 basis points year-on-year due to significantly lower revenue levels.

第三季雷射毛利率為 47.2%，較上一季下滑 30 個基點，較去年同期下滑 250 個基點，原因是營收水準顯著較低。

Now on to our guidance for the fourth quarter of fiscal '21, which is on a non-GAAP basis and is based on our assumptions as of today. We expect net revenue for the fourth quarter of fiscal '21 to be in the range of $360 million to $400 million. Despite industry headwinds, this revenue guidance is consistent with our historical seasonality when normalizing for the revenue we deferred and the recent 14-week quarter. I'd note, over the past 4 years, the mean seasonal revenue decline from the third to fourth fiscal quarter has been about 7%. Our revenue projection assumes Telecom and Datacom increasing quarter-on-quarter, industrial and consumer declining due to normal seasonality and commercial lasers increasing quarter-on-quarter driven by further market recovery from COVID-19.

接著是我們對 2021 會計年度第四季的財測，以下皆以非 GAAP 基礎呈現，並基於我們截至今日的假設。我們預期 2021 會計年度第四季淨營收將落在 3.6 億至 4.0 億美元之間。儘管產業面臨逆風，此營收指引在將我們遞延的營收以及近期 14 週季度因素標準化後，仍與我們歷史季節性一致。我想指出，過去 4 年中，從會計年度第三季到第四季的平均季節性營收下滑約為 7%。我們的營收預估假設電信與數據通訊將季增，工業與消費性將因正常季節性而下滑，而商用雷射將在 COVID-19 後市場進一步復甦的帶動下季增。

Based on this, we project fourth quarter operating margin to be in the range of 22.5% to 25% and diluted net income per share to be in the range of $0.92 to $1.14. These projections also assume an approximate share count of 79 million, an estimated other expense of $1 million and an estimated tax expense of $9 million.

基於此，我們預估第四季營業利益率將落在 22.5% 至 25% 之間，稀釋後每股淨利將落在 0.92 至 1.14 美元之間。這些預估亦假設約 7,900 萬股的股數、其他費用估計為 100 萬美元，以及所得稅費用估計為 900 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 來開始問答環節。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 comes from Samik Chatterjee of JPMorgan.

（接線員指示）我們的第一個問題來自摩根大通（JPMorgan）的 Samik Chatterjee。

This is Joe Cardoso on for Samik Chatterjee. My first one here, just wanted to touch on the first half guide you provided for fiscal '22, starting with Telecom and Datacom. You're calling for moderate growth before reaccelerating in the second half of the year. Just wondering if you can parcel out the details there a bit. Where are you expecting to see the greatest strength? Where are you expecting to see the greatest weakness? How much is supply-related?

我是代替 Samik Chatterjee 的 Joe Cardoso。我這邊第一個問題，想先談一下你們對 2022 財年上半年的指引，從電信與資料通訊（Telecom and Datacom）開始。你們預期在下半年重新加速之前，先呈現溫和成長。想請你們把細節再拆解一下：你們預期最大的強勢會出現在哪裡？最大的弱勢會在哪裡？其中有多少是供應相關的因素？

And then in terms of the recovery into the second half, can you kind of rank order the drivers that's kind of giving you confidence that we should have recovery in the second half?

另外，關於下半年復甦，你們能否把讓你們有信心下半年會復甦的驅動因素，按重要性大致排序一下？

Sure. I'd say first half going, through the different product areas. As we said, Q4, we see Telecom growth -- Telecom and Datacom growth in Q4. We expect Telecom to continue to grow in the first half, but moderately from the exit rate of Q4. Datacom is going to continue to be hampered, from our perspective and expectations, around 5G rollout in China. And one of the reasons we had that revenue deferral in the third quarter is the inventory in the various stages of deployment is moving very slowly. So we don't expect that to pick up. And as we said, the DML year-on-year reduction in Q4 is about $20 million. So we expect that to continue to be a drag on our Datacom business.

好的。我會先從上半年、按不同產品領域來說明。如我們所說，第四季我們看到電信成長——電信與資料通訊在第四季都有成長。我們預期電信在上半年會持續成長，但相較於第四季的期末水準（exit rate）會較為溫和。資料通訊方面，從我們的觀點與預期來看，仍會受到中國 5G 部署進度的拖累。第三季之所以有營收遞延，其中一個原因是各部署階段的庫存流轉非常緩慢，因此我們不預期會回升。而且如我們所說，第四季 DML 的年對年減少約 2,000 萬美元，所以我們預期這會持續拖累我們的資料通訊業務。

Offsetting that is the increased capacity we're putting in place on EMLs. And so we should see modest increases in EMLs but overall, Datacom will be down in the first half.

抵銷上述影響的是我們正在為 EML 增加的產能。因此我們應該會看到 EML 小幅增加，但整體而言，資料通訊在上半年仍會下滑。

Commercial lasers is continuing to see a recovery from the pandemic. And as we said, we expect that we will, by the middle of our fiscal year, be back to pre-pandemic levels. So we'll see moderate growth in lasers.

商用雷射（Commercial lasers）持續從疫情中復甦。正如我們所說，我們預期在本財年中期可回到疫情前水準。因此雷射業務將呈現溫和成長。

And then as we said also, our expectation, given the 3D sensing market being smaller by 20% to 25%, mainly due to design decisions that some of our customers have made around smaller chips, and smaller chips lead to smaller average content per device. And so that's probably the bigger drag on the first half expectations.

另外，如我們也提到，我們的預期是 3D 感測市場規模將縮小 20% 到 25%，主要是因為部分客戶在設計上選擇更小的晶片，而晶片變小會導致每台裝置的平均內容價值（average content per device）下降。因此，這可能是上半年預期中較大的拖累因素。

As far as second half and why we're confident that we'll see a rebound, I think if you look across our product portfolio, our design wins are phenomenal. Our team has done a fabulous job on our high port count and contentionless ROADMs. Those are designed in and we talked about new designs in the West. And so from our perspective, we are very much poised for a rebound. Now that might happen before the end of the calendar year but our expectations are that this is modest, and then in the second half of the fiscal year, that picks up.

至於下半年以及我們為何有信心會反彈，我認為若放眼我們的產品組合，我們的設計導入（design wins）非常亮眼。我們團隊在高埠數（high port count）與無阻塞（contentionless）的 ROADM 上做得非常出色。這些都已被設計採用，我們也談到西方市場的新設計。因此從我們的角度來看，我們已經非常準備好迎接反彈。這可能在日曆年結束前就會發生，但我們的預期是先溫和，然後在財年下半年加速。

Also in the second half of the year, our capacity will be coming online for our EMLs, and that is going quite well, and we talked about that 2 or 3 quarters ago. That's in motion, and we expect that our EMLs, due to our highly differentiated products and the orders that we talked about in Q3, we expect to capture major market share on our EML business on the 200- and 400-gig products. And then, again, continued growth in lasers. And then the 3D sensing is, again, a market issue that I think we'll all see on that one.

此外，在下半年，我們的 EML 產能也將上線，進展相當順利，我們在兩到三個季度前就談過。這項計畫正在推進中；由於我們產品高度差異化，以及我們在第三季提到的訂單，我們預期在 200G 與 400G 產品的 EML 業務上取得主要市占。然後，雷射持續成長。至於 3D 感測，這同樣是市場層面的問題，我想大家都會在那一塊看到相同情況。

The next question comes from Rod Hall with Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）的 Rod Hall。

I guess my first question is back to 3D sensing. I think it has been pretty well telegraphed that chip size is going to go down, but I had also been assuming that you guys would have higher share as a result of the redesign. So I just wonder if, Alan, could you comment on your share position in H1 and how you see that going? And then I've got a follow-up.

我想我的第一個問題回到 3D 感測。我認為晶片尺寸會變小這件事已經講得很清楚了，但我原本也假設你們會因為重新設計而提高市占。所以我想請問 Alan，你能否評論一下你們在上半年（H1）的市占位置，以及你們怎麼看後續走勢？然後我還有一個追問。

Sure, Rod. Thanks for the question. We're highly confident of our ability to satisfy our customers. And for the last 3.5 years, we've been the partner of choice. We continue to execute, deliver almost 1 billion units of 3D sensing. And so I think from our perspective, we're the design lead. We're doing very, very well. Our market share -- we've been saying for 2.5 years that our customer needs security of supply and that we would see a shift, and we had -- we saw that last year.

當然可以，Rod。謝謝你的問題。我們對於滿足客戶需求的能力非常有信心。過去 3.5 年來，我們一直是首選合作夥伴。我們持續執行並交付了將近 10 億個 3D 感測單位。因此從我們的角度來看，我們是設計領先者，表現非常、非常好。至於市占——我們過去 2.5 年一直在說，我們的客戶需要供應安全性（security of supply），因此我們會看到供應來源的轉移，而我們去年確實看到了。

So I don't want to make expectations that we're going to go back to the kinds of share that we had over the last 3 years because that was uncomfortable for our customer and for us, quite frankly. So I think having 2 suppliers in our leading customer is a good thing and one that gives us a comparison of how well we perform compared to our competitor. And I think we're continuing to perform very well from a quality, delivery, cost perspective. And so our expectations are that we're going to continue to have a solid share, especially at the front end of product launches.

所以我不想讓大家期待我們會回到過去 3 年那種市占水準，坦白說，那對我們的客戶以及對我們而言都不太舒服。因此我認為在我們的主要客戶那裡有兩家供應商是好事，也能讓我們對照我們相較競爭對手的表現。我認為我們在品質、交付、成本等面向仍持續表現得非常好。因此我們的預期是，我們會持續維持穩健的市占，尤其是在產品上市初期（front end of product launches）。

Okay. Great. And then for my follow-up, I just wanted to check on -- I know that there's additional ROADM capacity planned for the summer. Just wanted to check that's still on track that you guys are going to expand on capacity. I guess now, well, maybe you could comment on what you think that means for ROADM revenue trajectory post that. Are we still -- are you still expecting to be short? It sounds like probably not given what's going on in the market. But I'd just be curious on the supply versus demand balances as you bring that capacity online and whether it's still on track.

好的。那我的追問是，我想確認一下——我知道你們計畫在夏季增加額外的 ROADM 產能。我想確認這是否仍按計畫進行、你們仍會擴充產能。我想現在——也許你可以評論一下，這對於之後 ROADM 營收走勢意味著什麼？我們是否仍——你們是否仍預期會供不應求？聽起來考量市場現況，可能不會。但我想了解在你們產能上線時，供需平衡會是什麼狀況，以及是否仍按計畫推進。

Yes. We have added ROADM capacity, mostly on the high end for the MxN as well as the very high port count ROADMs. And so as our Western customers have added our MxN to their mainstream product portfolio, we are not going to be short from a capacity standpoint. So that -- because we're the sole source, we cannot let them down. And from that perspective, we're adding capacity in anticipation of them continuing to grow that business in the first half of our fiscal year but really ramping it dramatically in the second half. So that's on track.

是的。我們已增加 ROADM 產能，主要是在高階產品，包括 MxN 以及超高埠數（very high port count）的 ROADM。隨著西方客戶把我們的 MxN 納入其主流產品組合，從產能角度來看我們不會短缺。因此——因為我們是唯一供應來源（sole source），我們不能讓他們失望。基於這點，我們提前增加產能，預期他們在我們財年上半年會持續成長這項業務，但真正會在下半年大幅拉升。因此這部分進度如期。

I'd say the other thing that's causing some angst is the semiconductor shortages. And so I have been a keen expediter of semiconductors more than I'd like to be, but that is also putting some pressure on our ability to meet our customer demand on the high end.

我想另外一個造成一些焦慮的因素是半導體短缺。因此我在催料半導體這件事上投入的精力比我希望的還多，但這也確實對我們在高階產品上滿足客戶需求的能力帶來一些壓力。

The next question comes from Alex Henderson with Needham.

下一個問題來自 Needham 的 Alex Henderson。

You've made a couple of comments around 3D sensing that I just wanted to get some clarification on. So clearly, there's been some share shift going on. There's a reduction in your share and an increase in your competitor's share. Your comment that you expect to have solid share is not very definitive in terms of whether you think that rate of change in share's been altered. Can you talk about whether you think you've gotten to a point where shares have stabilized? Or do you expect to continue to have share erosion? How should we think about share trajectory as opposed to -- whether it's just simply solid? Solid's not very descriptive.

你們對 3D 感測做了幾個評論，我想釐清一下。很明顯地，市占正在發生轉移：你們的市占下降、競爭對手的市占上升。你們說預期會有「穩健」的市占，但這並不明確，無法判斷你們是否認為市占變化的速度已經改變。你們能否談談，你們是否認為市占已經到達穩定點？還是你們預期市占會持續流失？我們應該如何看待市占走勢——而不只是「穩健」這個詞？「穩健」不太具描述性。

All right, Alex. I think our track record speaks for itself. As new products have been announced, we are the dependable supplier that our customer counts on. And if you want to have a different word for solid, that's how I'd describe it.

好的，Alex。我認為我們的過往紀錄已經說明一切。當新產品發布時，我們是客戶所倚賴的可靠供應商。如果你想用不同的詞來替代「穩健」，我會用這樣來形容。

And so my perspective is that the share equilibrium that has been reached in the last quarter is probably where we're going to end up. And I think, over the long term -- now every quarter is going to be different based on new products and the models that get built and where we are versus our competitor. But I think, overall, our numbers speak for itself. And I think if you talk to our competitors, do the comparison and see where we are. I mean we're pretty transparent with our 3D sensing numbers in our press release and in our earnings.

因此我的看法是，過去一季所達到的市占均衡，可能就是我們最終會落在的位置。我認為從長期來看——當然每一季都會因新產品、實際生產的機型，以及我們相對於競爭對手的狀況而不同——但整體而言，我們的數字已經說明一切。我也認為如果你去和我們的競爭對手談，做個比較看看我們的位置。我們在新聞稿與財報中對 3D 感測的數字其實相當透明。

So the conclusion is that your share has stabilized relative to where it has been in the most recent couple of quarters. Is that a fair statement of what you just said?

所以結論是，你們的市占相較於最近幾個季度的水準已經穩定下來。這樣理解你剛才的意思，算是合理的說法嗎？

I think so. I mean from my perspective, I'm extremely turning to guidance all the time, and that keeps us on our toes, make sure that we're attentive and responsive to our customers' needs. And we don't want to give them any reason or excuse to move any more share than they already have. And I think they're comfortable with it. I'm comfortable with it. And I think from that perspective, we're just continuing to work on next generation and next, next generation for our customer to make sure we're there for them.

我想是的。我的意思是，從我的角度來看，我一直非常依賴指引，而這讓我們時刻保持警覺，確保我們對客戶需求保持專注並迅速回應。我們也不想給他們任何理由或藉口，讓他們把已經轉移出去的份額再轉移更多。我認為他們對此感到安心；我也感到安心。而且我認為從這個角度來看，我們只是持續為客戶開發下一代、再下一代的產品，確保我們一直都在他們身邊。

Your next question comes from Simon Leopold with Raymond James.

下一個問題來自 Raymond James 的 Simon Leopold。

I've got 2. I want to ask the sort of more complex one first and the second is easy. So on this 3D sensing market decline that you've talked about, there's obviously 2 key dimensions. One is volume and the other is ASP. I appreciate you can't be specific on the values, but could you help us get a better understanding of how we should think about what's going on with ASPs, with the smaller chip other than the fact that they're less?

我有兩個問題。我想先問比較複雜的那個，第二個比較簡單。關於你提到的 3D 感測市場下滑，顯然有兩個關鍵面向：一個是出貨量，另一個是 ASP（平均售價）。我理解你不能具體說明數值，但你能否幫助我們更好地理解，對於較小晶片的 ASP，我們應該如何看待正在發生的事情？除了它們比較便宜這一點之外。

Yes, Simon, I'd say that just like any semiconductor, the cost of that device scales with both chip size as well as yield. And so our customers' expectation is that ASP scales with chip size, and we're working on yield. And I think we've done a great job and our team has done a great job in getting to yields that I think our competitor and our customer never thought we could get to.

是的，Simon，我會說就像任何半導體一樣，該元件的成本會同時隨晶片尺寸以及良率而變動。因此，我們客戶的預期是 ASP 會隨晶片尺寸而調整，而我們也在努力提升良率。我認為我們做得非常好，我們的團隊在把良率提升到一個我想競爭對手和客戶都沒想到我們能達到的水準方面，表現非常出色。

So I think, from that perspective, you can imagine that the discussions with our customer is around, hey, the chip is x percent smaller in price -- in size, and therefore, it should be x percent smaller in ASP. And I think that holds true for the most part, given any different complexity of processing or testing or any yield variation.

所以我認為，從這個角度來看，你可以想像我們與客戶的討論會圍繞著：嘿，晶片尺寸縮小了 x%，因此 ASP 也應該降低 x%。我認為在大多數情況下確實如此，除非製程或測試的複雜度不同，或良率有所差異。

But from our perspective, wafer size is a good indicator of cost, and therefore, it becomes a good indicator of price. And from our perspective, we price for a given margin and the market dynamic. And we're very confident, even at lower ASPs, that our margins will continue to maintain where they have been.

但從我們的角度來看，晶圓尺寸是成本的一個良好指標，因此也成為價格的一個良好指標。從我們的角度，我們會在既定毛利率與市場動態下定價。我們非常有信心，即使在較低的 ASP 下，我們的毛利率仍將維持在過去的水準。

But that implies gross profit dollars are lower then?

但那表示毛利金額會更低，對嗎？

Yes. I mean, absolutely. I think on a percentage basis, the margins are going to be stable. With the top line coming down because of market shrinkage, the dollars at the bottom will be lower.

是的。我的意思是，絕對如此。我認為以百分比來看，毛利率會保持穩定。但由於市場萎縮導致營收下降，最終的獲利金額會更低。

Okay. And then the easy question I had, hopefully, is just trying to unpack the Datacom products a little bit. It sounds to me that the DML chips and the 5G exposure to China is pretty decent-sized, probably bigger than I was guessing and maybe EMLs, maybe a little bit smaller. So can you give us a little more color on how to think about the proportions coming from different products within Datacom? So help us think about this trending.

好的。那我第二個、希望比較簡單的問題，是想更拆解一下 Datacom（資料通訊）產品。聽起來 DML 晶片以及對中國 5G 的曝險規模相當可觀，可能比我原先猜的更大；而 EML 可能稍微小一些。你能否多提供一些細節，讓我們理解 Datacom 內不同產品的占比？也就是幫助我們理解這個趨勢。

Sure. I'd say that our EML business grew 40% year-on-year. So the growth in Datacom is coming from EMLs. And we sell DMLs to the 5G fronthaul. We sell DMLs to transceiver suppliers that sell into hyperscale data centers, although that is starting to soften as well as those hyperscalers are moving from 100-gig transceivers to 200 and 400 gig transceivers.

當然。我會說我們的 EML 業務年增 40%。因此 Datacom 的成長來自 EML。我們把 DML 賣到 5G 前傳（fronthaul）。我們也把 DML 賣給收發器供應商，而這些供應商會供貨給超大型資料中心（hyperscale data centers），不過隨著這些 hyperscaler 正從 100G 收發器轉向 200G 與 400G 收發器，這部分也開始走弱。

And so we're going to see a rapid shift not only from the reduction in 5G deployments but also the shift from 100G in the data center to 200 and 400G. So our focus and pressure is really on how do we add capacity or shift capacity from DMLs to EMLs, and it's not straightforward as you might think because there is difference in complexity with respect to the processing of an EML compared to a DML.

因此，我們將看到快速的轉變，不僅來自 5G 部署減少，也來自資料中心從 100G 轉向 200G 與 400G。我們的重點與壓力主要在於：如何增加產能，或將產能從 DML 轉移到 EML；而這並不像你想的那麼直接，因為相較於 DML，EML 在製程處理上的複雜度有所不同。

I think you can assume that pre-5G slowdown, it was probably around 50-50-ish, and I think you can model that in the Datacom business. But if you look at Q4 business, I'd say it's dramatically EML-heavy, and that will continue to grow through the first half of the fiscal year.

我想你可以假設在 5G 放緩之前，大概是 50/50 左右，我認為你可以用這個比例來建模 Datacom 業務。但如果你看第四季的業務，我會說它明顯偏向 EML，而且這個趨勢會在本財年上半年持續成長。

The next question comes from Meta Marshall with Morgan Stanley.

下一個問題來自 Morgan Stanley 的 Meta Marshall。

Great. Maybe a couple of questions for me. Just one on post the Coherent deal and deciding to do a share repurchase. Just kind of what is kind of your current appetite for M&A, particularly given Silver Lake had been a potential partner when you were looking at the Coherent acquisition? It would seem as if by opting for a share repurchase, you were looking to be maybe less active in the near term.

好。我這邊可能有幾個問題。第一個是關於完成 Coherent 交易之後，以及決定進行庫藏股回購。你們目前對併購（M&A）的意願如何，特別是考量到 Silver Lake 在你們評估收購 Coherent 時曾是潛在合作夥伴？看起來選擇回購股票，似乎表示你們短期內可能會比較不積極進行併購。

And then on the second question, just as you look at your telco forecast kind of going forward, have you incorporated what could potentially be an incremental slowdown due to kind of what we're seeing in India right now?

第二個問題是，當你們展望未來的電信（telco）預測時，是否已納入目前印度情況可能帶來的額外放緩影響？

Yes, that looks like 3 questions, Meta. But okay, let me take the M&A. I'll have Wajid talk about the share repurchase.

是的，Meta，這聽起來像三個問題。不過好，我先回答併購（M&A）的部分；我會請 Wajid 談談股票回購。

We still believe that M&A is strategic for us and will create inorganic value for our shareholders, and we're still focused on doing that. I think we have a track record of successful M&A, and that's what we're looking for.

我們仍然相信併購對我們而言具有策略性，並將為股東創造外生成長的價值，我們仍然專注於此。我認為我們在成功併購方面有良好的紀錄，而這正是我們在尋找的。

I think we are disappointed that Coherent went the way it went, although I think it also is an opportunity for us to step back and say, "What is the next acquisition." And at this point in time, management and the Board believe that the value of organic value creation is the best place to put our cash.

我想我們對 Coherent 最終的結果感到失望，雖然我認為這也給了我們一個機會退一步思考：「下一個收購標的是什麼？」而在目前這個時間點，管理團隊與董事會認為，把現金用在有機價值創造上是最好的選擇。

I'd say Wajid can talk about the cash generation we've had and the decision on the share repurchase, and I'll come back to the telecom question. Go ahead, Wajid.

我會請 Wajid 談談我們的現金創造能力以及做出回購決策的原因，然後我再回到電信的問題。Wajid，請。

Yes. No, I think we've struck a perfect balance in terms of our capital allocation strategy. As you know, we've historically invested heavily in CapEx to support our growth as well as in selective M&A transactions. And the beauty of the $700 million share buyback that our Board has authorized is that it's just a little bit larger than the amount of cash we've generated over the last 12 months, and it still leaves us with a lot of firepower to go ahead and do M&A transactions as we choose to. So I think it gives us optionality, and it allows us to maintain flexibility moving forward as well.

是的。我認為我們在資本配置策略上取得了非常好的平衡。如你所知，我們過去一直大量投資資本支出（CapEx）以支持成長，同時也進行選擇性的併購交易。董事會核准的 7 億美元股票回購的好處在於，它的規模略大於我們過去 12 個月所產生的現金，同時仍讓我們保有充足的火力，能在我們選擇的時候進行併購交易。所以我認為這給了我們選擇權，也讓我們在未來能維持彈性。

So we're looking forward to putting some cash to work in order to be able to buy back some shares, especially at current levels.

因此，我們期待投入部分現金來回購一些股票，尤其是在目前的價位水準。

And then on your third question on telecom forecast and incremental impact of things like what's going on in India. It's hard to say. I think our perspective is that we've seen a continued slow ramp-up of telecom even through this time. Our expectations are that, that continues.

至於你第三個問題，關於電信預測以及像印度目前情況這類因素的額外影響，這很難說。我們的觀點是，即使在這段期間，我們仍看到電信持續緩慢爬升。我們的預期是這種情況會持續。

And if it doesn't go to India -- and I think in talking to our customers, they're still deploying in India today. And so if things get much worse, which I -- hard to believe or hard to imagine, that could be impacted. But so far today, it's still deploying but not at the rate it would otherwise if there had not been such an influx of cases.

如果它沒有走向印度——而且我認為從與客戶的對話來看，他們今天仍在印度部署。因此如果情況變得更糟——我很難相信或很難想像——那可能會受到影響。但截至目前，仍在部署，只是速度沒有在沒有如此大量病例湧入的情況下那麼快。

The next question comes from John Marchetti from Stifel.

下一個問題來自 Stifel 的 John Marchetti。

Maybe just following up for a minute, Alan, on the telecom comment. With some of the new wins that you had for the MxN with some of the Western vendors, on your sort of first half fiscal year outlook, do you expect those sorts of deployments to continue to ramp? And I guess, has your expectation for that ramp slowed relative to maybe where you were a quarter or so ago?

也許我再追問一下，Alan，關於你對電信的評論。就你們在 MxN 方面與一些西方供應商拿到的新案子而言，在你們本財年上半年的展望中，你是否預期這類部署會持續爬升？另外，我想問的是，相較於大約一季前，你對這個爬升速度的預期是否有所放緩？

I'd say no. I'd say we're pretty much tracking to where we expected. I mean I think we had expected that there would be muted growth as a result of challenges of deploying during the pandemic. But we are very, very happy with the progress of the design cycle of our product in next-generation systems for not just Chinese NEMs but also the Western NEMs that we talked about in the script.

我會說沒有。我會說我們基本上正按我們預期的方向推進。我的意思是，我們原本就預期因疫情期間部署的挑戰，成長會較為溫和。但我們對於我們產品在下一代系統中的設計導入進展感到非常、非常滿意，不僅是中國的 NEM（網路設備製造商），也包括我們在講稿中提到的西方 NEM。

So I think from our perspective, we're poised for MxN, indium phosphide, coherent components and modules. And so as or if the deployments accelerate, we'll be ready.

所以從我們的角度來看，我們已為 MxN、磷化銦（indium phosphide）、相干（coherent）元件與模組做好準備。因此當部署加速時，或如果部署加速，我們都會準備就緒。

And then maybe just as a follow-up, on the 5G deferral side, is it your sense that inventory levels got way ahead of themselves because of some of the risks associated with all the prior administration's efforts to hamper some of that growth there? Or is this a result of the delays in some of those tenders? And just curious where you think maybe those inventory levels are right now. And if it's a couple of quarters to move that out or if we still have to wait and see what some of these new expected tenders actually deliver.

接著也許再追問一下，在 5G 延後的部分，您的看法是庫存水位之所以大幅超前，是因為先前那屆政府為了阻礙那邊部分成長所做的一些努力所帶來的風險嗎？還是說這是因為某些標案延宕所致？也想請教您認為目前那些庫存水位大概在哪裡？是需要幾個季度才能消化掉，還是我們仍得觀望這些新預期的標案實際會帶來什麼成果。

Yes. I mean I think if you go back in time, last year, there was expectation that there'd be 1 million base stations in China or some number like that. There was approximately 60% of those deployed. Same kind of outlook was for calendar '21, and I think similar kind of disappointment, if you will, in that 600 million to 680 million (sic) [600,000 to 680,000] base stations look like they're going to be deployed. But not a lot have been deployed in the first half.

是的。我想如果回頭看，去年原本預期中國會有 100 萬座基地台之類的數字。實際上大約部署了其中的 60%。對於 2021 年曆年（calendar '21）也有類似的展望，而我想也有類似的失望：看起來將部署約 6 億到 6.8 億（原文誤植）[60 萬到 68 萬] 座基地台。但上半年部署的數量並不多。

And so our belief is that, that starts picking up this summertime but won't have meaningful impact on our business until the middle part of the fiscal year. So that's where we think the inventory throughout, whether that's at the radio base station supplier or at their transceiver customer -- supplier or in our WIP, I mean there's that much inventory where I think that it needs to ramp up and it needs to start deploying before we see any meaningful deployment.

因此我們的看法是，這個夏天開始會加速，但要到我們會計年度的中段才會對我們的業務產生實質影響。所以我們認為整體庫存，不論是在無線基地台供應商端、或在其收發器客戶—供應商端、或在我們的在製品（WIP）中，都有相當多的庫存；我認為必須先拉升產出並開始部署，我們才會看到任何有意義的部署量。

And I'd say it's solely due to the U.S.-China geopolitical issues and their ability to get chips for the base stations. And so that redesign is happening. And our expectation is that, that will start picking up in the second half of the calendar year.

我會說這完全是因為美中地緣政治問題，以及他們取得基地台晶片的能力受限。因此正在進行重新設計。我們的預期是，這會在曆年下半年開始回升。

The next question comes from Ananda Baruah with Loop Capital.

下一個問題來自 Loop Capital 的 Ananda Baruah。

Yes, 2 for me, if I could as well. Really, clarification is the first one. You guys talked about on 3D sensing, there both being a market down component and then the price mix -- and then the pricing component. How much of the guidance is market down versus the pricing on the smaller design? And then also, are you seeing pricing pressure, you call it pricing pressure? And then I have a quick follow-up.

是的，我也有兩個問題可以嗎？第一個主要是釐清。你們談到 3D 感測時，提到同時有市場下滑的因素，以及價格/組合（price mix）—以及定價因素。指引中有多少是市場下滑、多少是較小設計的定價所致？另外，你們是否看到定價壓力—你們會稱之為定價壓力嗎？然後我還有一個簡短追問。

This is Chris. Good morning. I think -- well, the market down is the combination of normal price erosion and the smaller chip size, which reduces the dollar content, if you will. We've made no -- to be clear, and I think Alan mentioned this in the prepared remarks, we're not opining on anything around volumes or mix within the market, if you will. This is purely sort of normalizing for those factors, just about lower dollar content than normal price erosion.

我是 Chris。早安。我想—市場下滑其實是正常的價格侵蝕（price erosion）加上晶片尺寸變小的組合，後者會降低美元含量（dollar content），可以這麼說。我們沒有—講清楚一點，而且我想 Alan 在事先準備的發言中也提到，我們不對市場內部的出貨量或組合（mix）做任何評論。這純粹是把那些因素正常化後的結果，也就是美元含量下降，而不只是正常的價格侵蝕。

I would say that pricing environment is normal. There's not unusual pressure, right? We've provided price-downs for our customers every year since we got into this business. And then we've seen price increases as chip sizes have gone up and prices come down with normal price erosion or, in this case, when there's a redesign and the chip is smaller.

我會說定價環境是正常的，沒有不尋常的壓力，對吧？自從我們進入這個業務以來，每一年我們都會給客戶降價。而且我們也看過，當晶片尺寸變大時，雖然價格會因正常的價格侵蝕而下降，但因晶片尺寸變大，價格也會上升；或者像這次，因為重新設計、晶片變小。

That said, we also have a product road map well aligned with our customers. That includes designs that integrate additional functionality, enable lower cost, higher performance, maybe integrate to other optical capabilities, reduces packaging costs, package sizes, et cetera. That will help us capture more dollar content over time as those products are launched.

話雖如此，我們也有一個與客戶高度一致的產品路線圖。其中包含整合更多功能的設計、能夠降低成本並提升效能、也許整合其他光學能力、降低封裝成本與封裝尺寸等等。隨著這些產品推出，將有助於我們隨時間推進取得更多的美元含量。

But going back to the question about the market in fiscal '22, there's other customers coming online in other markets and other applications. But they won't come online fast enough to offset the impact that we're seeing at some of the major customers with the dollar content and normal price erosion. So -- but as they come online through fiscal '22 and into fiscal '23, then we believe the market will reaccelerate.

但回到 2022 會計年度（fiscal '22）市場的問題，其他市場與其他應用也會有其他客戶上線。不過他們上線的速度不足以抵消我們在部分主要客戶那邊看到的美元含量下降與正常價格侵蝕的影響。所以—但當他們在 2022 會計年度並延伸到 2023 會計年度（fiscal '23）逐步上線後，我們相信市場會重新加速。

That's helpful, Chris.

這很有幫助，Chris。

Sorry, maybe just one other thing to add on the market outlook that's different than where we were on the last earnings call, which was our expectation is to have a major Android customer incorporate 3D sensing. And recently, they made the decision not to do it in this generation of product. And so that also puts pressure on expectations around the market when the major Android customer decided not to incorporate 3D sensing. And so that puts some pressure on our outlook for the market in fiscal '22.

抱歉，另外也許再補充一點：相較於上一次法說會，我們對市場展望有一個不同之處，就是我們原本預期某個主要 Android 客戶會導入 3D 感測。但最近他們決定在這一代產品中不採用。因此，當這個主要 Android 客戶決定不導入 3D 感測時，也會對市場預期造成壓力，進而對我們 2022 會計年度的市場展望帶來一些壓力。

That was actually my follow-up. Do you think just -- to that end, do you see other opportunities sort of in the Android space aside from that, that one vendor that still could be included in what was your thought process 90 days ago?

那其實就是我的追問。就此而言，除了那一家廠商之外，你是否認為在 Android 領域還有其他機會，仍可能被納入你們 90 天前的思考之中？

Yes. I mean I think we continue to be very excited about the Android adoption. It's obviously been slower than we've expected and I'm sure everybody has been -- expected.

是的。我想我們仍然對 Android 的採用非常興奮。顯然它比我們預期的更慢，我相信大家也都—預期如此。

But this year has, I think, been rough for Android suppliers overall, given it seems like COVID-19 has really impacted them compared to our largest customers. I think Alan -- well, there's strong interest across the board for kind of a LiDAR-based approach or time-of-flight-based approaches for world-facing, for photography, AR/VR applications.

但我認為今年對 Android 供應商整體而言都很艱難，因為看起來 COVID-19 相較於我們最大的客戶，對他們的影響更大。我想 Alan—嗯，對於採用以 LiDAR 為基礎或以飛行時間（time-of-flight）為基礎的方法，用於後置（world-facing）攝影、AR/VR 應用，各方都有強烈興趣。

And Alan highlighted in the script what we think is a very positive data point that we had a customer launch a great smartphone with world-facing capabilities really focused on photography. This is a customer who also sells components, if you will, image sensors and others to the Android universe en masse, and therefore, their technologies or their designs frequently proliferates much larger Android manufacturers. And that's really been one of the technical barriers to the Android world, is that this is harder technology, and then some of the more low-cost Android manufacturers need help with the technology. So it's great to see a leading technology, maybe not a leading volume manufacturer of phones adopt it so that, that technology will proliferate a bit further.

而 Alan 在講稿中也強調了一個我們認為非常正面的數據點：我們有一位客戶推出了一款很棒、具備後置（world-facing）能力、且非常聚焦攝影的智慧型手機。這位客戶同時也向 Android 生態大量銷售元件（如果你願意這麼說的話），例如影像感測器等，因此他們的技術或設計經常會擴散到更大型的 Android 製造商。這一直是 Android 世界的一個技術門檻：這項技術更難，而一些較低成本的 Android 製造商需要技術上的協助。所以很高興看到一個領先技術、也許不是手機出貨量領先的製造商採用它，讓這項技術能進一步擴散。

The next question comes from George Notter with Jefferies.

下一個問題來自 Jefferies 的 George Notter。

I guess I wanted to kind of keep going on the 3D sensing discussion here. Any changes in the performance characteristics that you're seeing out of the marketplace either through world-facing or front-facing? Is that driving the ASP and chip size changes? Or is this more of a sort of natural evolution of the market?

我想我想繼續談 3D 感測這個話題。你們在市場上看到的性能特性（performance characteristics）是否有任何變化，不論是後置（world-facing）或前置（front-facing）？這是否在推動 ASP 與晶片尺寸的變化？還是這更像是市場的自然演進？

Yes. George, I think it's more of a capability that we've been able to provide to our customer, and jointly, these are chips that we've talked about with our customer 2 and 3 years ago. And so as our capability and technology improves, we can, combined, develop a product that has more functionality at a smaller size. And I think Chris talked about our ability to then go from that stage of the game to adding more functionality on the chip that now our customer needs to go to third parties and add different types of components. As we roll out those types of functionalities that are embedded in the chip at a lower cost, we will capture more dollar content. So I'd say this is no different than just the evolution of driving lower-cost solutions at higher functionality and features.

是的，George，我認為這更像是我們能提供給客戶的一種能力；而且這些晶片是我們在 2 到 3 年前就與客戶討論過的。因此，隨著我們的能力與技術提升，我們可以共同開發出功能更多、尺寸更小的產品。我想 Chris 也談到，我們接著能從那個階段進一步在晶片上加入更多功能，而這些功能目前我們的客戶需要找第三方並加入不同類型的元件。當我們推出這類以較低成本把功能嵌入晶片的功能時，我們將取得更多的美元含量。所以我會說，這與其說是其他因素，不如說就是以更高功能與特性推動更低成本解決方案的演進。

And one thing to add to that, I think that maybe got lost is while the chips may be smaller, there's still a lot of lasers. In fact, as many lasers, if not more, than in the past. So that presents a lot of technical challenges to accomplish it.

另外補充一點，我想可能被忽略的是：雖然晶片可能更小，但雷射的數量仍然很多。事實上，雷射數量與過去一樣多，甚至更多。所以要做到這點會帶來很多技術挑戰。

As Alan said, that's why it's taken us several years in working with the customers to achieve that level of density on the chip. The reason I highlight that, it also provides a level of differentiation and barrier to entry for other folks in the market. So it's not like the chip's getting smaller and dumber. It's getting smaller and more complex, if you will.

如 Alan 所說，這也是為什麼我們花了好幾年與客戶合作，才達到晶片上那樣的密度。我之所以強調這點，是因為它也為市場上的其他競爭者提供了差異化與進入門檻。所以並不是晶片變小就變得更簡單。可以說，它是變得更小、但更複雜。

The next question comes from Michael Genovese with WestPark Capital.

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

So there's a lot of hand-wringing on the call about the market share but I feel like you answered it better in the prepared remarks. And I want to make sure I understand correctly because you're saying that the market is going to be down 20% to 25% in the second half of the calendar year, and your revenues are going to be down 5%. So doesn't that suggest some share switch as bringing back to you as this new chip -- or this new smaller chip is rolled out? Doesn't the math just tell us that you're gaining share?

所以這通電話上對市占率有很多焦慮，但我覺得你們在事先準備的發言中回答得更好。我想確認我理解正確：你們是說曆年下半年市場將下滑 20% 到 25%，而你們的營收將下滑 5%。那這不就暗示有一些市占轉換回到你們這邊，因為這顆新晶片—或這顆新的較小晶片推出了嗎？從數學上看，不就是告訴我們你們正在提升市占嗎？

Well, keep in mind, 3D sensing is a portion of our business. And so as we look at our different other businesses, Lasers is going to grow, Telecom is going to grow, Datacom is going to be under pressure. And so our commentary was around the market and the market being down 20% to 25% in the fiscal year, not just the fiscal first half, in the fiscal year, our belief due to the chip size and the lack of adoption by a major Android customer, that the market itself will be down 20% to 25%.

嗯，請記住，3D 感測只是我們業務的一部分。因此，當我們看我們其他不同的業務時，雷射業務將會成長，電信將會成長，數據通訊將會承壓。所以我們的評論是針對市場而言：市場在本財年（不只是本財年上半年，而是整個財年）將下滑 20% 到 25%。我們的看法是，由於晶片尺寸以及一位主要 Android 客戶缺乏採用，市場本身將下滑 20% 到 25%。

Now how that translates into our revenue is hard to say, but it's going to have a negative impact on our revenue, assuming we maintain the share that we have today. And I think that's what you can model into your first half model. And if it turns out that we gain a bunch of share, then great. But our expectations and our guidance don't count on that.

至於這會如何反映到我們的營收上很難說，但在假設我們維持目前市占的情況下，這將對我們的營收造成負面影響。我認為你可以把這點納入你對上半年的模型中。如果結果是我們拿到一大堆市占，那當然很好。但我們的預期與指引並沒有把這種情況算進去。

Got it. Okay. Great. And then I just wanted to ask for your perspective. I mean the indium phosphide news is good news. As we track that market, there's a lot of interest in pluggables and 400ZR and ZR plus. And so what's your perspective on that market? Does Lumentum need to play there? Is it going to inhibit or drive the growth rate of indium phosphide going forward? Just any general commentary there would be appreciated.

了解。好。很好。接著我想請教你們的看法。我是說，磷化銦的消息是好消息。當我們追蹤那個市場時，對可插拔（pluggables）、400ZR 和 ZR plus 的興趣很高。所以你們對那個市場的觀點是什麼？Lumentum 需要參與其中嗎？它會抑制還是推動未來磷化銦的成長率？任何一般性的評論都很感謝。

Yes. Thanks, Mike. Yes. I mean, certainly, we're very excited about our opportunities for our indium phosphide platform, very differentiated capabilities. We are already supplying high performance indium phosphide components into 800 gig applications as an example. But also very focused on 400 gig pluggable modules. There's a whole range of performance requirements all the way from metro long haul then down to DCI and ZR type modules, working on all of them. Some of them are in production. Others are in the sampling phase. And we're kind of prioritizing our investments based on our ability to differentiate our products and size the opportunity and customer feedback. So it's a great opportunity for us given the unique indium phosphide platform we have.

是的。謝謝你，Mike。是的，我的意思是，當然，我們對磷化銦平台的機會感到非常興奮，具備非常差異化的能力。舉例來說，我們已經在 800G 應用中供應高效能的磷化銦元件。同時也非常專注於 400G 可插拔模組。從都會長途（metro long haul）一路到 DCI，再到 ZR 類型模組，涵蓋一整套效能需求，我們都在做。其中一些已在量產，其他則在送樣階段。我們會依據產品差異化能力、機會規模以及客戶回饋來優先排序投資。因此，憑藉我們獨特的磷化銦平台，這對我們是很好的機會。

The next question comes from Christopher Rolland with Susquehanna.

下一個問題來自 Susquehanna 的 Christopher Rolland。

I guess my first question is pretty broad. I guess looking out into the next year, kind of with the best crystal ball you guys have, do you expect to grow revenue year-over-year? And then secondly, you talked about the reacceleration maybe in the back half. Maybe talk about what this looks like, how it kind of manifests itself for your various segments as well.

我想我的第一個問題比較宏觀。展望明年，以你們手上最好的「水晶球」來看，你們預期營收會年增嗎？第二，你們提到可能在下半年重新加速。能否談談這會是什麼樣子，以及它如何在你們各個事業部門中呈現？

Yes. Christopher, maybe I could comment and Chris or Wajid can chime in. Our focus is to give you what we know when we know it, and our outlook for the first half of the fiscal year changed. And so that's why we made the exception and gave you guidance for the first half so that you knew as soon as we knew. And I think that's why we gave first half guidance.

是的。Christopher，也許我先回應，Chris 或 Wajid 也可以補充。我們的重點是在知道的時候就把我們知道的告訴你們，而我們對本財年上半年的展望改變了。因此我們才破例提供上半年的指引，讓你們在我們知道的同時也能盡快知道。我想這就是我們給出上半年指引的原因。

We're not going to talk about the year. I think it's too hard to predict, let alone what's going to happen 2 quarters out as opposed to 4 or 5 quarters out. So I think what we can comment on is our progress on new products, new design wins with customers, and that's going extremely well. And so as the market picks up or as deployments pick up, we'll be there for our customers. And we'll be really focused on making sure we get them what they need.

我們不會談整個年度。我認為那太難預測了，更不用說預測 2 個季度之後的情況，相較於 4 或 5 個季度之後。因此，我們能評論的是我們在新產品、與客戶的新設計導入（design wins）方面的進展，而這些進展非常順利。所以當市場回升或部署回升時，我們會在那裡支持客戶，並且會非常專注於確保我們能提供他們所需要的。

That said, we are investing in capacity for those key products. ROADMs, we talked about. We're investing in our wafer fabs, both in Datacom as well as our indium phosphide capabilities for coherent components. So we are investing in anticipation of that picking up, and we'll be ready for our customers.

話雖如此，我們正在為那些關鍵產品投資產能。我們談過 ROADM。我們也在投資我們的晶圓廠，包含數據通訊以及用於相干元件的磷化銦能力。因此，我們是在預期需求回升的情況下進行投資，並會為客戶做好準備。

The next question comes from Fahad Najam with MKM Partners.

下一個問題來自 MKM Partners 的 Fahad Najam。

I have a clarification first. The deferred revenue from DMLs of a few million dollars. Is that accounted into your guidance? Or is that completely out of your guidance for 4Q?

我先釐清一下。來自 DML 的遞延營收有幾百萬美元。這有計入你們的指引嗎？還是完全不包含在你們第四季的指引裡？

Yes, Fahad. It's Wajid here. So the impact of the $15 million was on fiscal Q3. And any type of recovery we see of that, whether it's in Q4 or whether it's in the first half of fiscal '22 has already been incorporated in our guidance that we provided.

是的，Fahad。我是 Wajid。1500 萬美元的影響是在本財年第三季。至於我們看到的任何回收，不論是在第四季或是在 2022 財年上半年，都已經納入我們所提供的指引中。

Okay. And now to my question. So Alan, it's not surprising that ASPs were coming down. Our checks had indicated that ASPs will come down as your lead customer moves to a combined projector and slightly liberated module. But if our checks are also right, in the next generation of this customer, the -- presumably that the [sensor] will be behind the glass model. And there, I think your technology is significantly far better or more advanced than some of your peers.

好的。那回到我的問題。Alan，ASP 下滑並不令人意外。我們的查核顯示，隨著你們的主要客戶轉向一個結合式投影器、且模組稍微更「解放」（liberated）的方案，ASP 會下降。但如果我們的查核也正確，在這位客戶的下一代產品中——推測 [sensor] 會採用玻璃後置（behind the glass）模型。在那裡，我認為你們的技術相較一些同業明顯更好或更先進。

So if you can expect -- you expect acceleration in fiscal 2022, is that based on an assumption of one, your share gains? Or is that based on an assumption that there is primarily more proliferation of 3D sensing across more SKUs with this customer and also, generally speaking, more broader adoption by Android? If you could parse that comment about reacceleration in fiscal 2022.

所以如果你們預期 2022 財年會重新加速，那是基於一、你們市占提升的假設？還是基於這位客戶在更多 SKU 上更廣泛導入 3D 感測，以及更廣泛而言 Android 端更普遍採用的假設？能否拆解一下你們對 2022 財年重新加速的評論？

Sure. Well, I think from reacceleration in fiscal 2022, what we had intended to say or what we had expected to really message was a lot of design wins happening now for different industries, whether that be automotive, security, biometrics and access control and things like that are happening now that should accelerate through fiscal '23.

當然。我想我們所說的、或我們原本想傳達的 2022 財年重新加速，是指目前在不同產業正在發生大量設計導入（design wins），不論是車用、安全、 生物辨識與門禁等，這些正在發生的事情應該會在 2023 財年加速。

We're still hopeful that Android comes online in fiscal '23. But I think our outlook is really more around added customers, added markets.

我們仍然希望 Android 會在 2023 財年上線。但我認為我們的展望更多是圍繞新增客戶、擴增市場。

And as far as next generation of devices for our lead customers, we're working on many, many different things. And until they get close to deciding what's the plan of record, we're working on many, many different things without knowing what is actually going to be the plan of record for fiscal '23. And so we're just making sure we're the design source for them, and we will lead them -- whether that's a continuation of existing designs or new designs when they choose to put them in.

至於我們主要客戶的下一代裝置，我們正在做很多很多不同的事情。在他們接近決定「既定方案」（plan of record）之前，我們會在不知道 2023 財年實際既定方案會是什麼的情況下，同時推進許多不同的方向。因此我們只是確保我們是他們的設計來源（design source），並且我們會帶領他們——不論是延續既有設計，或是當他們選擇導入時採用新設計。

We have time for one more question in our allotted time. The next question comes from Tom Diffely from D.A. Davidson.

在我們分配的時間內，我們還有時間再回答一個問題。下一個問題來自 D.A. Davidson 的 Tom Diffely。

I had a question on just the nice margin expansion on a year-over-year basis. Based on the cost reduction and some of the new products that you're rolling out, has most of the benefit now been realized? Or is there a runway for extending the expansion going forward on a margin basis?

我想問一下關於年對年毛利率擴張表現不錯的部分。基於成本降低以及你們正在推出的一些新產品，目前大部分的效益是否已經實現？還是未來在毛利率擴張方面仍有延伸的空間？

Yes, I'll start off. It's Wajid here. So on our gross margins, you're right to point out a lot of the year-over-year improvement that we've had across our Optical Communications products. Our Lasers margins have come down year-over-year primarily because our volume levels have been lower.

是的，我先開始。我是 Wajid。就我們的毛利率而言，你指出的沒錯，我們在光通訊產品線的年對年改善幅度很大。我們的雷射毛利率年對年下降，主要是因為出貨量水準較低。

But as Alan noted in his remarks and even in the Q&A session, we're expecting our Lasers business to continue to improve not only in Q4 but throughout fiscal '22. That should have a corresponding positive impact on the gross margins as it relates to Lasers.

但如 Alan 在他的發言中、以及在問答環節提到的，我們預期雷射業務不僅在第四季，且在 2022 財年全年都會持續改善。這也會對雷射相關的毛利率帶來相應的正面影響。

Now within Optical Communications, we're continuing to expect margins to hold quite well primarily because of some of the product mix benefits we'll start seeing as EML capacity comes on board. We talked about our 50% gross margin model a couple of quarters ago as we put it out there. And as you can see, even with our fiscal Q3 actual results year-to-date, as well as what we're forecasting for Q4, our current expectation is that at fiscal '21, we'll end up with gross margins north of 50%. And we're targeting a 50% margin model for fiscal year '22 as well despite some of the puts and takes that we've talked about during the call. So I think that, that continues to be our target and our product and our customer deployments that we're seeing support that.

至於光通訊內部，我們仍預期毛利率能維持得相當好，主要是因為隨著 EML 產能到位，我們將開始看到一些產品組合帶來的效益。我們在幾個季度前提出過 50% 毛利率模型。你可以看到，即使以本財年第三季的實際年初至今結果，以及我們對第四季的預測來看，我們目前的預期是在 2021 財年毛利率會超過 50%。而且即便有我們在電話會議中提到的一些利多利空因素，我們在 2022 財年也同樣以 50% 毛利率模型為目標。因此我認為這仍會是我們的目標，而我們看到的產品與客戶部署也支持這一點。

This concludes our question-and-answer session. I would like to turn the conference back over to Jim Fanucchi for any closing remarks.

以上為我們的問答環節。我想把電話會議交回給 Jim Fanucchi，請他做任何結語。

Thank you. This concludes our call for today. We would like to thank everyone for attending, and we do look forward to talking with you again when we report the fourth quarter fiscal '21 results. Have a good day.

謝謝。今天的電話會議到此結束。感謝各位的參與，我們也期待在公布 2021 財年第四季結果時再次與各位交流。祝各位有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議已結束。感謝各位參加今天的簡報。您現在可以中斷連線。