Lumentum Holdings Inc. (LITE) 2020 Q2 法說會逐字稿

Good day, everyone, and welcome to the Lumentum Second Quarter Fiscal Year 2020 Financial Results Conference Call. As a reminder, today's call is being recorded for replay purposes through February 11, 2020.

各位好，歡迎參加 Lumentum 2020 會計年度第二季財務業績電話會議。提醒各位，今天的電話會議將錄音，供回放至 2020 年 2 月 11 日。

I would now like to turn the conference over to Mr. Jim Fanucchi of Darrow Associates. Mr. Fanucchi, please go ahead.

現在我想把會議交給 Darrow Associates 的 Jim Fanucchi 先生。Fanucchi 先生，請開始。

Thank you, Sharon. Welcome, everyone, to Lumentum's Second Quarter Fiscal 2020 Earnings Call. This is Jim Fanucchi from Darrow Associates, assisting Lumentum with its Investor Relations. And 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. Today's call will include forward-looking statements, including statements regarding the markets in which we operate, including potential market sizes, market trends and our position in such markets, trends and expectations for our products and technology, including product development and projected new product releases, purchasing trends and demand for our products, our expected financial performance, including our guidance, expenses, risks associated with potential disruption caused by the coronavirus as well as statements regarding our business initiatives and the achievement of synergies following our acquisition of Oclaro. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations.

謝謝你，Sharon。各位好，歡迎參加 Lumentum 2020 會計年度第二季財報電話會議。我是 Darrow Associates 的 Jim Fanucchi，協助 Lumentum 的投資人關係事務。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。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的陳述（含潛在市場規模、市場趨勢以及我們在該等市場中的地位）、關於我們產品與技術的趨勢與預期（含產品開發與預計新產品發表）、採購趨勢與對我們產品的需求、我們預期的財務表現（含財測指引）、費用、與新冠病毒可能造成的潛在干擾相關的風險，以及關於我們的業務倡議與收購 Oclaro 後協同效益達成情況的陳述。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。

Lumentum encourages you to review our most recent filings with the SEC, particularly the risk factors described in our filings with the Securities and Exchange Commission including the company's quarterly report on Form 10-Q for the fiscal quarter ended December 28, 2019, to be filed with the Securities and Exchange Commission later today and Lumentum's 10-K for fiscal year 2019 ended June 29, 2019.

Lumentum 鼓勵各位查閱我們最近向美國證券交易委員會（SEC）提交的申報文件，特別是其中所述的風險因素，包括公司截至 2019 年 12 月 28 日止會計季度的 Form 10-Q 季報（將於今日稍晚向 SEC 提交）以及 Lumentum 截至 2019 年 6 月 29 日止 2019 會計年度的 Form 10-K 年報。

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. 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 release with the second quarter fiscal 2020 results is 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's website also contains our latest SEC filings and supplementary slides relating to today's earnings release, and the company encourages you to review these documents.

本次電話會議中所提供的前瞻性陳述，係基於 Lumentum 截至今日之合理信念與預期。除非適用法律要求，Lumentum 不承擔更新這些陳述的義務。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 編製之財務資訊的替代或更優者。Lumentum 2020 會計年度第二季業績新聞稿可於其網站 www.lumentum.com 的「Investors」專區取得，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。Lumentum 網站亦包含我們最新的 SEC 申報文件，以及與今日財報發布相關的補充簡報投影片；公司鼓勵各位查閱這些文件。

In addition, a recording of today's call will be available by 11:30 a.m. Pacific time today on our website.

此外，今日電話會議的錄音將於太平洋時間今日上午 11:30 前後在我們的網站上提供。

Now prior to handing the call to Alan, we wanted to provide an update on why NASDAQ halted the trading of the company's stock yesterday after market. The company discovered an employee's computer password had been compromised yesterday. As this employee had access to a portion of the financial information reported this morning. The company informed NASDAQ of the situation and they decided to halt trading until this information was made public. As of 8 a.m. Eastern Time this morning, trading had resumed.

在把電話交給 Alan 之前，我們想先更新說明為何納斯達克（NASDAQ）在昨日盤後暫停公司股票交易。公司昨日發現一名員工的電腦密碼遭到入侵。由於該員工可存取今早所公布之部分財務資訊。公司已將此情況通知 NASDAQ，而 NASDAQ 決定在該資訊公開之前暫停交易。截至今早東部時間上午 8 點。交易已恢復。

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

現在我把電話交給 Alan 發表評論。

Thank you, Jim. Good morning, everyone. Second quarter performance was strong. We achieved new record revenue, gross margin and operating margin. This performance is the result of strong customer demand for our differentiated products, increasing levels of new and innovative products and an improving financial model due to increasing scale and acquisition synergies.

謝謝你，Jim。各位早安。第二季表現強勁。我們創下營收、毛利率與營業利益率的新紀錄。這項表現來自客戶對我們差異化產品的強勁需求、創新新產品比重提升，以及隨著規模擴大與併購協同效益帶動而改善的財務模型。

Looking to calendar year '20. Telecom transport demand is now strengthening. We expect telecom transmission demand to continue to grow further. We expect a significant expansion in the market for world-facing 3D sensing lasers. And from a financial model improvement standpoint, we have made substantial progress but we are not done yet, attaining acquisition synergies and exiting the low-margin products we have highlighted on prior calls.

展望 2020 年曆年。電信傳輸（telecom transport）需求目前正在轉強。我們預期電信傳輸（telecom transmission）需求將持續進一步成長。我們預期面向世界（world-facing）的 3D 感測雷射市場將顯著擴張。就財務模型改善而言，我們已取得重大進展，但仍未完成，包括達成併購協同效益，以及退出我們在先前電話會議中提及的低毛利產品。

We believe we have sustainable technology leadership positions that makes us indispensable to the multiple diverse growing markets we serve today and into the future. We plan to continue to invest strongly in R&D and new product capabilities to extend both our technology and market leadership positions.

我們相信，我們具備可持續的技術領先地位，使我們在當前及未來所服務的多元且成長中的市場中不可或缺。我們計畫持續大力投資研發與新產品能力，以延伸我們的技術與市場領先地位。

Now for further product line and market details. Second quarter revenue increased 2% sequentially and 23% year-on-year. The largest driver of sequential and year-over-year growth was Telecom and Datacom driven by strong customer demand. Telecom and Datacom revenue was up 7% sequentially and 29% from the prior year. Growth was driven by strong demand for our differentiated coherent telecom transmission products and high-speed laser transmitter chips for data center and 5G front haul applications. The strong Telecom and Datacom transmission growth more than offset the decline we experienced in telecom transport revenue. We are now seeing, however, telecom transport demand increasing. Demand was and continues to be strong for our ACO modules and our DCO module volumes are ramping now.

接下來提供更多產品線與市場細節。第二季營收季增 2%，年增 23%。帶動季增與年增的最大動能來自電信與數據通訊（Telecom and Datacom），主要受惠於客戶強勁需求。電信與數據通訊營收季增 7%，較去年同期成長 29%。成長動能來自我們差異化的相干（coherent）電信傳輸產品，以及用於資料中心與 5G 前傳（front haul）應用的高速雷射發射器晶片。電信與數據通訊傳輸的強勁成長，已足以抵銷我們在電信傳輸（telecom transport）營收所經歷的下滑。不過，我們目前已看到電信傳輸需求正在增加。我們的 ACO 模組需求一直且仍然強勁，而我們的 DCO 模組出貨量目前正在爬坡。

Demand exceeded our ability to supply across a range of products in the second quarter. Products impacted by supply constraints included high end ROADMs, coherent transmission components and modules and laser transmitter chips. We are working to improve supply of these products to meet strong customer demand. We continue to sell off remaining inventory and satisfy customer last time buys for previously discussed discontinued low-margin Telecom and Datacom products. We continue to expect revenue from these products to effectively decline to 0 over the next couple of quarters. However, we now expect the largest revenue decline from these discontinued products of approximately $10 million to $15 million to occur in the fourth quarter. We are optimistic about the long-term outlook for our Telecom and Datacom product lines due to expected long-term demand trends, our technology and product leadership positions and improving industry dynamics. Demand over the long run should be strong based on the continued strong growth expected in global networks and data center traffic and the optical infrastructure needed to support 5G wireless bandwidth. We are well positioned in the market with our industry-leading products and deep customer relationships. Our next-generation products are critical to the global customer base and include a range of high-performance DCO transmission modules and underlying highly integrated components, including those at 400G and above. High baud rate Indium phosphide components, including those for 800G transmission. Contentionless, MxN and high port count twin ROADMs where we are qualified for an advanced design phases across all major customer platforms, and high-performance laser transmitter chips, most notably our EML transmitters. These enable next-generation 400G and higher speed data center architectures and next-generation wireless front haul and access solutions.

第二季在多項產品上，需求超出我們的供應能力。受供應限制影響的產品包括高階 ROADM、相干傳輸元件與模組，以及雷射發射器晶片。我們正努力改善這些產品的供應，以滿足客戶的強勁需求。我們持續出清剩餘庫存，並滿足客戶對先前已討論之已停產低毛利電信與數據通訊產品的最後一次採購（last time buys）。我們仍預期這些產品的營收在未來幾季將實質下降至 0。然而，我們目前預期，這些已停產產品最大的營收下滑（約 1,000 萬至 1,500 萬美元）將發生在第四季。基於長期需求趨勢的預期、我們的技術與產品領先地位，以及產業動態的改善，我們對電信與數據通訊產品線的長期展望保持樂觀。長期而言，隨著全球網路與資料中心流量預期持續強勁成長，以及支援 5G 無線頻寬所需的光學基礎設施，需求應會維持強勁。憑藉我們業界領先的產品與深厚的客戶關係，我們在市場上具備良好定位。我們的次世代產品對全球客戶群至關重要，包含一系列高效能 DCO 傳輸模組及其底層高度整合的元件（包括 400G 及以上）。高鮑率（baud rate）的磷化銦（Indium phosphide）元件，包括用於 800G 傳輸者。無阻塞（contentionless）、MxN 與高埠數雙 ROADM；我們已在所有主要客戶平台的先進設計階段取得資格認證，以及高效能雷射發射器晶片，尤其是我們的 EML 發射器。這些產品可支援次世代 400G 及更高速的資料中心架構，以及次世代無線前傳與接取解決方案。

After significant M&A in the optical space over the past few years, industry dynamics are improving. We expect these dynamics to continue to improve and to compound over time.

在過去幾年光學領域經歷了重大的併購（M&A）之後，產業動態正在改善。我們預期這些動態將持續改善，並隨時間推移產生複利效應。

Looking to the third quarter, Telecom and Datacom demand strength should offset typically seasonal factors. Our industrial and consumer product lines were down 15% sequentially, but up 20% relative to the prior year. The smaller than anticipated sequential decline was due to strong customer demand for 3D sensing-enabled products. Year-on-year growth was also driven by customers incorporating 3D sensing and a higher percentage of their product offerings compared to last year. We expect the 3D sensing market will grow significantly over the next couple of years as 3D sensing is incorporated in more consumer products in both user and world-facing applications, including computational photography and augmented and virtual reality.

展望第三季，電信與數據通訊（Telecom 和 Datacom）的需求強勁應可抵消通常的季節性因素。我們的工業與消費性產品線較前一季下滑15%，但較去年同期成長20%。低於預期的季減幅度主要是因客戶對具備3D感測功能的產品需求強勁。年增亦受惠於客戶在其產品供應中導入3D感測的比例較去年提高。我們預期未來幾年3D感測市場將顯著成長，因為3D感測將被納入更多消費性產品，涵蓋使用者端與面向外界（world-facing）的應用，包括計算攝影以及擴增與虛擬實境。

Our R&D teams are very busy working with a broad range of customers on their future generations of 3D sensing needs, including for new products coming later this year and next as well as for products several years away. We are well positioned to grow in this market, and our experience is a valuable advantage that has proven difficult for our competitors to replicate.

我們的研發團隊正非常忙碌，與廣泛的客戶合作其未來世代的3D感測需求，包括今年稍晚與明年推出的新產品，以及數年後的產品。我們在此市場具備良好的成長布局，而我們的經驗是一項寶貴優勢，且已證明競爭對手難以複製。

Looking to our third quarter, our guidance contemplates 3D sensing declining more than 20% due to normal seasonality in customer demand, but we expect 3D sensing to be up year-on-year. Over the past year, 3D sensing has penetrated deeper into customers' product portfolios, including increasing need for world-facing applications. We expect this trend to continue.

展望第三季，我們的指引考量到因客戶需求的正常季節性，3D感測將下滑超過20%，但我們預期3D感測仍將較去年同期成長。過去一年，3D感測已更深入滲透至客戶的產品組合，包括對面向外界（world-facing）應用的需求增加。我們預期此趨勢將持續。

Now on to lasers. Second quarter lasers revenue increased to $48.4 million. During the second quarter, we started shipping our new PicoBlade 3 ultra-fast laser for micromachining applications. This product addresses OLED display processing, 5G antenna fabrication and advanced via hole drilling in printed circuit boards. These applications are all expected to see significant market growth in the coming years. Over the long run, because of our investments in unique new products and technology, like the PicoBlade 3, we believe we have good opportunities for growth, driven by new product introductions in addition to market growth. In the third quarter, we expect laser revenue to be down a bit due to customer seasonality. Throughout my remarks, I've highlighted long-term trends that make our product -- products and technology increasingly critical to the markets in which we participate. I've also highlighted the progress we have made towards our strategic and financial goals. Over the past several years, we have made significant investments in new products, markets, design wins and M&A. We believe these investments and the long-term trend in our markets position us well for the future.

接著談雷射。第二季雷射營收增加至4,840萬美元。在第二季期間，我們開始出貨全新的 PicoBlade 3 超快雷射，用於微加工（micromachining）應用。此產品可用於OLED顯示器製程、5G天線製造，以及印刷電路板（PCB）中的先進導通孔（via hole）鑽孔。預期這些應用在未來幾年都將出現顯著的市場成長。長期而言，基於我們對 PicoBlade 3 等獨特新產品與技術的投資，我們相信除了市場成長之外，亦可藉由新產品導入帶動良好的成長機會。第三季我們預期雷射營收將因客戶季節性因素而略為下滑。在我的發言中，我已強調多項長期趨勢，使我們的產品——產品與技術——在我們所參與的市場中愈發關鍵。我也強調了我們在達成策略與財務目標方面所取得的進展。過去幾年，我們在新產品、市場、設計導入（design wins）以及併購（M&A）方面進行了重大投資。我們相信，這些投資以及我們市場中的長期趨勢，使我們在未來具備良好定位。

Before handing it over to Wajid, some comments on the tragic and evolving coronavirus outbreak. First, our thoughts are with all of those affected. Second, our top priority is protecting the health and safety of our employees. We have restricted employee travel into and out of the affected regions, and we are reducing our participation in large group events with strong international attendance such as certain trade shows. In our factory in Shenzhen, China, employees have been impacted by travel restrictions and the extended Lunar New Year holiday imposed by the Chinese government. For some of our products, the supply of externally purchased material is being impacted. The situation is obviously very fluid, but we are in close contact with our factory in China, impacted suppliers, as well as our customers. Wajid will discuss the impact of the coronavirus on our third quarter financial guidance.

在交給 Wajid 之前，先談談這場令人悲痛且仍在演變的冠狀病毒疫情。首先，我們的心與所有受影響的人同在。其次，我們的首要任務是保護員工的健康與安全。我們已限制員工進出受影響地區的差旅，並降低參與具有高度國際參與度的大型群聚活動（例如部分展會）。在我們位於中國深圳的工廠，員工受到旅行限制以及中國政府延長農曆新年假期的影響。對於部分產品，外購材料的供應正受到影響。情勢顯然非常多變，但我們正與中國工廠、受影響的供應商以及客戶保持密切聯繫。Wajid 將說明冠狀病毒對我們第三季財務指引的影響。

I will now hand it over to Wajid.

我現在把時間交給 Wajid。

Thank you, Alan. Good morning, everyone. I'm pleased to be discussing our strong second quarter results. Net revenue for the second quarter was $457.8 million, which was up 2% sequentially and 23% year-on-year. GAAP gross margin for the second quarter was 41.3%. GAAP operating margin was 16.3% and GAAP diluted net income per share was $0.63. Second quarter non-GAAP gross margin was 47.4%, which was up 160 basis points sequentially and 730 basis points year-on-year. The higher gross margin was primarily driven by improvements in Telecom and Datacom margins as well as acquisition synergies. Non-GAAP operating margin for the second quarter was 28.8%, which was up 150 basis points sequentially and 680 basis points year-on-year. Non-GAAP operating expenses totaled $84.8 million or 18.5% of revenue. SG&A expense was $38 million. R&D expense was $46.8 million.

謝謝你，Alan。各位早安。我很高興與各位討論我們強勁的第二季業績。第二季淨營收為4.578億美元，較前一季成長2%，較去年同期成長23%。第二季GAAP毛利率為41.3%。GAAP營業利益率為16.3%，GAAP稀釋後每股淨利為0.63美元。第二季非GAAP毛利率為47.4%，較前一季提升160個基點，較去年同期提升730個基點。毛利率提升主要來自電信與數據通訊毛利率改善，以及併購綜效。第二季非GAAP營業利益率為28.8%，較前一季提升150個基點，較去年同期提升680個基點。非GAAP營業費用合計8,480萬美元，占營收18.5%。銷售、一般及管理（SG&A）費用為3,800萬美元。研發（R&D）費用為4,680萬美元。

Second quarter non-GAAP net income was $119.4 million. This includes $0.6 million of net interest and other expense and $12 million of tax expense. Non-GAAP diluted net income per share was $1.53 based on a fully diluted share count of $78 million. We had very strong cash flows in the second quarter. Cash flow from operations was $162 million. We also took a series of actions impacting our capital structure during the quarter. We repaid in full the term loan that we took on in connection with the Oclaro acquisition. We sold $1.05 billion of new convertible notes due in 2026, and we repurchased $200 million of our common stock in connection with the note offering. These actions along with the strong cash generation from the company's normal business operations resulted in an end of quarter cash and short-term investments balance of $1.3 billion.

第二季非GAAP淨利為1.194億美元。其中包含60萬美元的淨利息及其他費用，以及1,200萬美元的所得稅費用。非GAAP稀釋後每股淨利為1.53美元，係以完全稀釋後股數7,800萬股計算。我們第二季的現金流非常強勁。營運活動現金流為1.62億美元。本季我們也採取一系列影響資本結構的行動。我們已全數償還因 Oclaro 併購案而承作的定期貸款（term loan）。我們發行了2026年到期的新可轉換公司債（convertible notes）10.5億美元，並配合該債券發行回購了2億美元的普通股。上述行動，加上公司正常營運所產生的強勁現金創造，使得季末現金及短期投資餘額達13億美元。

And now an update on synergies. On our call in August 2019, having achieved our initial $60 million target, we increased our annual run rate synergy target by $40 million to $100 million. Through the second quarter of fiscal '20, we have achieved approximately half of the incremental $40 million of synergies. And we have also identified an additional $10 million. Therefore, we expect to attain another $30 million in annual run rate synergies over the next 3 to 4 quarters, bringing the total acquisition synergies to $110 million versus the prior forecast of $100 million.

接著更新綜效進展。在2019年8月的電話會議上，在達成最初6,000萬美元目標後，我們將年度執行率（run rate）綜效目標再提高4,000萬美元至1億美元。截至2020會計年度第二季，我們已實現新增4,000萬美元綜效中的約一半。此外，我們也另外辨識出1,000萬美元的綜效。因此，我們預期未來3到4個季度可再達成3,000萬美元的年度執行率綜效，使總併購綜效達到1.1億美元，高於先前預估的1億美元。

Turning to segment details. Second quarter Optical Communications segment revenue at $409.4 million decreased 2% sequentially. Optical Communications segment gross margin at 48%, increased 190 basis points sequentially and 830 basis points year-on-year, with a more favorable mix of products, improved Telecom and Datacom margins and acquisition synergies. Our Laser segment revenue at $48.4 million increased 43% sequentially and was flat year-on-year. Second quarter Laser's gross margins was 42.1%, flat quarter-on-quarter.

接著說明各事業部門細節。第二季光通訊（Optical Communications）部門營收為4.094億美元，較前一季下滑2%。光通訊部門毛利率為48%，較前一季提升190個基點，較去年同期提升830個基點，主要受惠於較有利的產品組合、電信與數據通訊毛利率改善，以及併購綜效。雷射（Laser）部門營收為4,840萬美元，較前一季成長43%，較去年同期持平。第二季雷射部門毛利率為42.1%，與前一季持平。

Turning now to our guidance for the third quarter. The projections we are providing today are also on a non-GAAP basis and are based on our assumptions as of today. Please note, the guidance we are providing today incorporates an approximate $15 million to $20 million reduction in revenue at the midpoint and a wider-than-normal revenue range due to the coronavirus outbreak. We project net revenue for the third quarter will be in the range of $400 million to $425 million. At the midpoint, this revenue projection includes Telecom and Datacom increasing sequentially. Industrial and consumer decreasing due to 3D sensor sensing customer seasonality and commercial lasers also decreasing driven by customer seasonality. Based on this, we project third quarter operating margin to be in the range of 21% to 23% and diluted net income per share to be in the range of $1 to $1.17. These projections incorporate an approximate share count of $78 million and an estimated other income of $3 million. The share count and other income projections incorporate the impact of both of our convertible notes, pay down of our term loan and share repurchases made in December. I want to note again that our guidance incorporates a $15 million to $20 million reduction in revenue at the midpoint due to the anticipated impact of the coronavirus outbreak. And as Alan highlighted earlier, the situation is fluid and evolving.

現在轉到我們對第三季的財測指引。我們今天提供的預測同樣是以非 GAAP 基礎編製，並以我們截至今日的假設為基礎。請注意，我們今天提供的指引已納入因新冠病毒疫情爆發所導致、以中位數計約 1,500 萬至 2,000 萬美元的營收減少，以及因疫情造成的較正常更寬的營收區間。我們預估第三季淨營收將落在 4 億至 4.25 億美元之間。以中位數來看，這項營收預測包含電信與資料通訊業務的季增。工業與消費性業務因 3D 感測客戶的季節性而下滑，而商用雷射亦因客戶季節性而下滑。基於此，我們預估第三季營業利益率將落在 21% 至 23% 之間，稀釋後每股淨利將落在 1 美元至 1.17 美元之間。這些預測包含約 7,800 萬股的股數，以及約 300 萬美元的其他收益估計。股數與其他收益的預測已納入我們兩筆可轉換公司債、定期貸款償還，以及 12 月進行的庫藏股回購之影響。我想再次強調，我們的指引已納入因預期新冠病毒疫情影響、以中位數計約 1,500 萬至 2,000 萬美元的營收減少。而如 Alan 先前所強調，情勢仍在變動並持續演進。

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

接下來，我把電話交回給 Jim，開始問答環節。Jim？

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

謝謝你，Wajid。(接線員指示) Sharon，我們開始問答環節。

(Operator Instructions) Your first question comes from Rod Hall with Goldman Sachs.

(接線員指示) 你們的第一個問題來自高盛的 Rod Hall。

I wanted to start off and see if you could talk about the $15 million to $20 million adjustment for the coronavirus and give us some idea maybe where that lands? Is it mainly 3D sensing or is it evenly spread across the segments? And any other color you could give us on how that might impact things down through the P&L? And then I've got a follow-up.

我想先從新冠病毒相關的 1,500 萬到 2,000 萬美元調整開始，看看你們是否能談談這個數字大概落在哪裡？主要是 3D 感測，還是平均分布在各個事業部門？另外，你們能否再補充一些細節，說明這可能會如何一路影響到損益表（P&L）？然後我還有一個追問。

Yes. Rod, thanks for your question. This is Alan. The $15 million to $20 million is an estimate, based on what we know today, both from a supply standpoint as well as anticipated demand standpoint, given some of our customers are also in affected areas. So we don't have the granularity to say -- on the demand standpoint, where it comes from, I'll say that because our factory in Shenzhen is focused mainly on telecom transmission from a supply standpoint. That's primarily where the shortfall will come.

好的。Rod，謝謝你的問題。我是 Alan。這 1,500 萬到 2,000 萬美元是基於我們目前所掌握的資訊所做的估計，包含供給端以及預期需求端的情況，因為我們的一些客戶也位於受影響地區。因此在需求端，我們還沒有足夠的細分資訊可以說明——它具體來自哪裡；我會這麼說：由於我們在深圳的工廠從供給端來看主要聚焦於電信傳輸產品。缺口主要會出現在那一塊。

And Rod, as far as your question is related to the P&L. We've already incorporated the impact of the $15 million to $20 million in our operating margin and in our EPS guidance. So the $1 to $1.17 already includes the impact of the $15 million to $20 million adjustment that we noted in our script.

另外 Rod，關於你提到與損益表（P&L）相關的問題。我們已經把這 1,500 萬到 2,000 萬美元的影響納入我們的營業利益率與每股盈餘（EPS）指引中。因此，1 美元到 1.17 美元的區間已經包含我們在講稿中提到的這 1,500 萬到 2,000 萬美元調整的影響。

Okay. I wanted to follow up with a question on Huawei. Two things on that. One, the U.K.'s decision on Huawei, how does that impact you? Do you anticipate any impact from that, positive or negative, I guess? And then also, just maybe an update on what you're thinking in terms of recent administration comments regarding Huawei? Does that change anything? Do you have any thoughts on when we might find out more? Just any update on that would be helpful.

了解。我想追問一個關於華為的問題。有兩點。第一，英國對華為的決定，對你們有什麼影響？你們預期會有任何影響嗎？正面或負面都算。第二，想請你們更新一下，對於近期美國政府（行政當局）關於華為的評論，你們怎麼看？這會改變任何事情嗎？你們對於我們何時可能知道更多資訊，有什麼想法嗎？任何更新都會很有幫助。

Rob, this is Chris. I would say, to both parts of the question, given our footprint in the customer base, we're largely agnostic to which of our customers wins business. So whether in the U.K., Huawei is restricted to a more limited portion of the network. We don't believe is a significant change for us. And then in terms of understanding what the U.S. government is going to do here. I don't think we have any more insight than what you can read in the general news or media, but we are monitoring the situation very closely.

Rod，我是 Chris。我會說，就問題的兩個部分而言，考量到我們在客戶基礎中的布局，我們基本上不偏向任何一家客戶誰贏得業務。因此，無論在英國，華為是否被限制只能參與網路中較有限的部分。我們認為這對我們不會造成重大改變。至於理解美國政府接下來會怎麼做。我想我們並沒有比你從一般新聞或媒體上讀到的更多洞見，但我們正非常密切地關注情勢。

Your next question comes from Alex Henderson with Needham.

下一個問題來自 Needham 的 Alex Henderson。

Wanted to see if I could delve into a little bit what your comments were around the ROADM side of the business. Obviously, you're seeing some constraints at the high end of your production segment. But have you seen a change in the demand there? It sounded like, if I read what you were saying in your text that you're seeing a pickup in demand there. And if you could tie that into what you're thinking around the coronaviruses. That would be appreciated. Is corona going to result in a temporary demand hiatus on some supply or -- and then you get it back later in the year? Is it -- how do you see that playing out over time, assuming the virus has got the same traditional seasonality of all cold viruses, i.e., as the weather changes, it abates.

我想更深入了解一下你們對 ROADM 業務那一塊的評論。顯然你們在生產區段的高階產品上看到一些限制。但你們是否也看到那裡的需求出現變化？聽起來，如果我從你們文字稿的說法來解讀，你們在那裡看到需求回升。如果你們能把這點與你們對新冠病毒的看法連結起來。我會很感謝。新冠是否會導致某些供應端出現暫時性的需求空窗期——然後在今年稍晚再回補？也就是說，假設病毒和所有傳統感冒病毒一樣具有季節性（例如天氣轉暖後就會緩解），你們認為它會隨時間如何發展？

Yes. So what we said, Alex, was, if you remember going into our second quarter, we said we are seeing some telecom transport flattening out or softening. And we saw that in the second quarter. And what we wanted to reiterate in the script was that through the quarter, we saw a pickup in that demand across the board, but mostly on the high-end ROADMs as more and more of our customers are developing and designing systems around both our high port count wins as well as our contentionless end by end. So we're starting to see that really pick up across the board at all of our customers. And as far as the coronavirus impact on ROADM demand, I don't know that until our big customers come back from the break, we'll know exactly what impact that will have. That said, I don't think we have a problem in demand for the high-end ROADMs. And so we're shipping as much as we can, and I don't think that anything will impact that as we're adding more capacity over the next 9 months.

是的。Alex，我們說的是，如果你記得在進入第二季時，我們提到我們看到一些電信傳輸需求趨於持平或轉弱。而我們在第二季確實看到了這點。我們想在講稿中重申的是，在該季度期間，我們看到整體需求回升，但主要集中在高階 ROADM，因為越來越多客戶在系統開發與設計上，圍繞我們在高埠數（high port count）的得標，以及我們的無阻塞（contentionless）端到端方案。因此，我們開始看到這股動能在所有客戶端全面升溫。至於新冠病毒對 ROADM 需求的影響，在我們的大客戶結束假期回來之前，我不確定我們能否知道它會造成多大影響。但話說回來，我不認為高階 ROADM 的需求會有問題。因此我們正盡可能多出貨，而且我不認為會有任何事情影響到這點，因為我們在未來 9 個月會增加更多產能。

And if I could follow up. So looking at the corona commentary, I assume you're taking into account the full impact of the holidays and the extension. You're also sounds like you're taking into account some supply constraints. Are you assuming that, that stays -- could you give us a sense of how long you expect that to stay within that guidance? Or whether you're assuming that there is some tempering of the damage over time within that projection? What's the sensitivity to further extensions of delays or things of that sort versus the forecast assumptions?

如果我可以再追問一下。就新冠的評論來看，我假設你們已把假期及其延長的完整影響納入考量。聽起來你們也把一些供應限制納入考量。你們是否假設這種情況會持續——能否讓我們了解一下，你們預期在該指引期間內會持續多久？或者你們是否假設在該預測中，損害會隨時間有所緩和？若延遲進一步延長或出現類似情況，相對於你們的預測假設，其敏感度如何？

Yes. So Alex, maybe one of the differences with our factory in Shenzhen to others is that because of the very, very strong demand for coherent components and modules, we had a workforce working through the Chinese New Year at about 50%, plus or minus a little bit. So those employees continue to work through the Lunar New Year as well as this existing week because they were in working and staying at the dorms and didn't -- weren't restricted by travel restrictions. We have a good handle on where the other employees are. And our guidance contemplates them not coming back immediately because of the travel restrictions, but coming back slowly over time. And so we've had them kind of estimate what we think that's going to be, and that's where we came up with the $15 million to $20 million of impact. Did that answer your question?

是的。所以 Alex，或許我們深圳工廠與其他工廠的一個差異在於，由於相干元件與模組的需求非常、非常強勁，我們在農曆新年期間仍維持約 50% 的人力在工作，上下略有些差異。因此，這些員工在農曆新年以及本週也持續工作，因為他們一直在上班並住在宿舍，且沒有——不受旅行限制的影響。我們對其他員工目前所在位置掌握得很清楚。而我們的指引假設他們不會因旅行限制而立即返工，而是會隨時間逐步回來。因此我們請他們估算我們認為會是什麼情況，這也是我們得出影響約 1,500 萬至 2,000 萬美元的原因。這有回答到你的問題嗎？

Yes. That's very helpful.

是的。這非常有幫助。

Next question comes from Blayne Curtis with Barclays.

下一個問題來自 Barclays 的 Blayne Curtis。

This is Tom O'Malley for Blayne Curtis. My first question is around 3D sensing. Obviously, you have some big ramps coming up in the second half of this calendar year. Can you talk about what your expectations are for share? Has that changed recently? And how do you see yourselves competing in the second half? Are you any more or less well positioned than you were, say, last quarter?

我是代 Blayne Curtis 提問的 Tom O'Malley。我的第一個問題是關於 3D 感測。顯然，你們在今年下半年會有一些大幅放量。能否談談你們對市占率的預期？最近有改變嗎？以及你們如何看待自己在下半年的競爭？相較於例如上一季，你們的布局是更好還是更差？

Well, I'd say that we're going to continue to do what we need to do to satisfy our customer and give them no reason to want to buy from anyone else. And so I think having shipped 0.5 billion or more units with no field returns is a pretty compelling argument to continue to give us a very large share of the business. I will say that we do expect to introduce new products in the coming months that I think push the technology a little further and give us a -- strengthen our differentiation over our competitors that then will give us, again, a high share of those new products for quite some time. So I'm pretty confident in our position and feel good about where we are now as well as in the second half of the year.

嗯，我會說我們會持續做我們需要做的事來滿足客戶，讓他們沒有理由想向其他人採購。因此，我認為我們已出貨 5 億個或更多單位且沒有任何現場退貨，這是相當有說服力的理由，能讓我們持續取得非常大的業務份額。我也要說，我們確實預期在未來幾個月推出新產品，我認為這會把技術再往前推進一些，並讓我們——強化我們相對競爭對手的差異化，進而再次讓我們在相當長一段時間內於這些新產品上取得高市占。所以我對我們的定位很有信心，對我們現在以及今年下半年的狀況都感到樂觀。

Great. And then on the Telecom and Datacom businesses, you're guiding them both up. That's cumulatively. You're talking about how the Shenzhen factory may be affected from a telecom transmission perspective. And then you've also talked about some businesses going away. I know that, that's weighted towards the fourth quarter. But can you talk about are you able to offset both of those weaknesses in telecom specifically? And is it just the ROADMs that are better there that you've described? Or is there anything else that's kind of helping that grow?

很好。接著在電信與資料通訊業務方面，你們對兩者的指引都是上調。這是合計而言。你們提到深圳工廠可能會從電信傳輸的角度受到影響。你們也談到有些業務會消失。我知道那部分偏向第四季。但能否談談在電信方面，你們是否能抵消這兩個弱點？是否只是你們所描述的 ROADM 表現較好？或者還有其他因素在推動成長？

We -- as I said in the script, we're on serious constraints in our ability to meet our customers' demand for coherent components, ACOs and now DCOs. And so we are ramping those products as fast as we possibly can, putting aside the coronavirus impact on our Shenzhen factory. So I think we are seeing growth in transmission. We've seen the strength coming back in transport. And our Datacom chips are growing very rapidly, both in Q2 as well as expected throughout this year to support the 5G rollout, the data center build-outs, and so I think from that perspective -- that's why we said Telecom and Datacom are going to offset what typically is a seasonally soft quarter in the March quarter.

我們——如同我在講稿中所說，我們在滿足客戶對相干元件、ACO 以及現在 DCO 的需求方面，產能確實受到嚴重限制。因此我們正以最快速度拉升這些產品的產能，先不考慮新冠病毒對我們深圳工廠的影響。所以我認為我們確實看到傳輸業務在成長。我們也看到傳送（transport）的強勁需求回來了。而我們的資料通訊晶片成長非常快速，第二季如此，且預期今年全年都會持續成長，以支援 5G 部署、資料中心擴建；因此從這個角度——這也是為什麼我們說電信與資料通訊將抵消三月季度通常季節性偏弱的情況。

Yes. And also just to be sure we're clear that not all of our Telecom and Datacom revenue is flowing through our factory in China. In fact, our Datacom chip revenue does not touch that factory. And similarly, a lot of our telecom transport is not flowing through that factory. So we do have significant portions of our revenue from a supply standpoint unimpacted by what's going on in China.

是的。另外也要確認我們說清楚：並非我們所有的電信與資料通訊營收都會經由我們在中國的工廠。事實上，我們的資料通訊晶片營收不會經過那座工廠。同樣地，我們相當一部分的電信傳送（transport）也不會經由那座工廠。因此，從供應角度來看，我們有相當大一部分營收不會受到中國目前情況的影響。

Your next question comes from Samik Chatterjee with JPMorgan.

下一個問題來自 JPMorgan 的 Samik Chatterjee。

If I can just start off by following up on the earlier question about Huawei. I understand you mentioned that there is limited visibility at this time on the changes in terms of regulation from the government on that front. But what you're really embedding in your guidance then relative to revenue from the customer. I believe last quarter, you had mentioned you were expecting to see some slowdown in -- from that customer. So I just wanted to understand if that's played out as you expected, and are you expecting kind of similar revenues or a pickup from that customer?

如果可以的話，我想先跟進先前關於華為的問題。我了解你提到目前對政府在該方面的法規變動能見度有限。但你們在指引中實際上對該客戶的營收是如何納入考量的？我記得上一季你們提到預期會看到來自該客戶的某種程度放緩。所以我想了解這是否如你們預期般發生，以及你們是否預期來自該客戶的營收大致相近，或會回升？

This is Chris. I would say things are playing out as expected. That customer was a significant customer for a lot of our products that are being discontinued, for example, the datacom modules. They historically, were the largest customer. And similarly, on some of the products that we supply, where we do have competition, those products seem to be a little bit more impacted from a demand standpoint whereas our high-end products, particularly the high-end ROADMs, we're seeing less slowing, if you will. With that said, obviously, it's difficult to handicap what's going on with U.S. government, et cetera, and any changes that they may make to tools. I continue to point out that our manufacturing and supply chain is quite offshore. We do have some manufacturing in the U.S. of some laser chips. But other than that, in general, our manufacturing is quite offshore. So -- difficult to opine on what the impact of what people speculate changes would -- could be. But I think unless there's a complete change in strategy, i.e., the questions of a ratcheting down percentage is in de minimis threshold. That's something that unless there is a radical change in definitions. Wouldn't be as impactful to us given our supply chain.

我是 Chris。我會說事情的發展大致符合預期。該客戶是我們許多即將停產產品的重要客戶，例如資料通訊模組。他們過去一直是最大的客戶。同樣地，在我們供應且存在競爭的部分產品上，從需求角度看，這些產品似乎受到的影響更大；而我們的高階產品，特別是高階 ROADM，我們看到的放緩相對較少。話雖如此，顯然很難判斷美國政府等方面的動向，以及他們可能對相關工具做出的任何變更。我也持續強調，我們的製造與供應鏈相當程度在海外。我們確實有部分雷射晶片在美國製造。但除此之外，整體而言，我們的製造大多在海外。因此——很難對外界推測的變更可能造成的影響發表意見。但我認為，除非策略出現完全改變，也就是所謂把 de minimis 門檻的比例再往下調的問題，除非定義出現激進的改變，否則考量到我們的供應鏈，對我們的影響不會那麼大。

Got it. And if I can just follow up on the broader comment that you had in the press release about transport demands strengthening, and you've talked about the ROADM strength as well. If you can give any color on kind of which customers or geographies you're seeing as driving that? And how is that different from the drivers of the strength that you're seeing on the transmission side? That would be helpful.

了解。如果可以的話，我想再追問你在新聞稿中提到的更廣泛評論：傳送（transport）需求正在轉強，你也談到 ROADM 的強勁。你能否提供一些背景，說明是哪些客戶或地區在推動這股動能？以及這與你們在傳輸（transmission）端看到的強勁動能驅動因素有何不同？這會很有幫助。

Yes. Well, as I said in the script, the high-end ROADMs and the contentionless end by end are broadly being deployed in new systems across the boards. I wouldn't say that it's any particular customer nor would I comment if it were, just because I think we have a very broad footprint of customers. And our ROADM leadership really puts us in a good place across the board. Chris, do you have anything to add there?

是的。嗯，如同我在講稿中所說，高階 ROADM 以及端到端無阻塞（contentionless end by end）正在各方面被廣泛部署於新系統中。我不會說是任何特定客戶，也不會在即便是的情況下評論，因為我認為我們的客戶版圖非常廣。而我們在 ROADM 的領先地位，確實讓我們在各方面都處於有利位置。Chris，你還有什麼要補充的嗎？

No

不

Next question comes from John Marchetti with Stifel.

下一個問題來自 Stifel 的 John Marchetti。

Just following up a little bit on the transmission side. I was just curious outside of some of the constraints that you have right now in ACO, DCO. You had mentioned in the prior call that you were expecting that business to continue to build. Just want to get a sense from your perspective, is that still the case, if you're seeing that broadly across different geographies? And how you think about that transmission piece playing out here over the next several quarters?

我想再稍微追問一下傳輸端的情況。我只是好奇，撇開你們目前在 ACO、DCO 上的一些限制不談。你在上一通電話會議中提到，你預期那塊業務會持續成長。我想從你的角度了解一下，現在是否仍然如此，是否在不同地理區域都普遍看到這種情況？以及你如何看待未來幾個季度這塊傳輸業務的發展？

Yes. I mean we continue to see strength in ACOs, and we're in the midst of ramping our DCO product. But I think even underlying those products is our capability at the Indium phosphide level for higher baud rate components for products that are up to 800 gig. So we're seeing a broad range of customer demand for these enabling technologies from a component level through ACO and DCO, and it's broad-based.

是的。我的意思是，我們持續看到 ACO 的強勁表現，而我們也正處於 DCO 產品放量爬坡的階段。但我認為，即便在這些產品之下，更根本的是我們在磷化銦（Indium phosphide）層級的能力，能提供更高鮑率的元件，用於最高可達 800G 的產品。因此，從元件層級到 ACO 與 DCO，我們看到客戶對這些關鍵使能技術有廣泛的需求，而且是全面性的。

And then if I could just follow up real quickly on the end-by-end commentary. I just wanted to make sure, historically, I think that was primarily a product designed or shipping into Huawei. And I just wanted to follow up on your last comments that, that is now shipping to multiple customers and not just to that one.

另外，如果我可以很快再追問一下關於端到端（end-by-end）的評論。我只是想確認一下，從歷史上看，我認為那主要是一款為華為設計或出貨給華為的產品。我想就你剛才最後的評論再確認一下：現在這個產品已經出貨給多家客戶，而不只是那一家。

That is correct.

沒錯。

Next question comes from Simon Leopold with Raymond James.

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

I wanted to come back on the coronavirus supply side of the question. I think you've moved a lot of operations out of China. So maybe help us understand what portion of your production or head count is based in China now. And do you feel as if you have a competitive advantage because the folks you're competing against may be more exposed in terms of the supply side of this in terms of having more staff in China? And then I've got a follow-up.

我想回到新冠病毒在供應端的問題。我認為你們已經把很多營運移出中國。所以也許請你們協助我們了解，目前你們有多少比例的產能或人力仍在中國。以及你們是否覺得自己具備競爭優勢，因為你們的競爭對手在供應端可能曝險更高，例如在中國有更多員工？然後我還有一個追問。

Sure. Well, we have approximately 1,000 people in China. Most of those are manufacturing people. And then outside of China, we have contract manufacturers that employ thousands of people on our behalf as well as our own factory in Thailand. And so over the last 3 years, we did move a substantial percentage of our production out of a contract manufacturer in Shenzhen, China. Most of that went to our own factory as well as in the contract manufacturer in Thailand. So those employees and contract manufacturers are not affected by the coronavirus, except from the standpoint of any kind of sourcing of components, and we've looked at the sourcing of those components that could come from China. And we feel pretty comfortable that our Thailand contract manufacturer and our own operations will be minimally impacted by those sourcing of components coming from China. So I'd say, to answer your question, yes, I think we're in a much better position than some of our competitors who are highly China-manufacturing based.

當然。我們在中國大約有 1,000 名員工。其中大多數是製造相關人員。此外，在中國以外，我們也有代工廠代表我們雇用數千名員工，並且我們在泰國也有自有工廠。因此在過去 3 年，我們確實把相當大比例的產能從中國深圳的一家代工廠移出。其中大部分轉移到我們自有工廠以及泰國的代工廠。所以這些員工與代工廠不會受到新冠病毒影響，除非是從零組件採購的角度；我們也已檢視那些可能來自中國的零組件來源。我們相當有信心，泰國的代工廠以及我們自有營運，因為從中國採購零組件所受到的影響將會很有限。所以回答你的問題：是的，我認為相較於一些高度依賴中國製造的競爭對手，我們的處境要好得多。

Great. And then in terms of the follow up, one of the things that -- or risk that we've all talked about for some time is the idea that Huawei, in particular, or Chinese OEMs, in general, become more vertically integrated, and we have the impression that, that might be accelerating. And just want to get your sense, whether you've seen evidence of this, particularly in an area like a lower-end ROADM-type product or other aspects?

很好。那麼就追問而言，我們長期以來一直討論的一個風險是：華為尤其是、或更廣泛地說中國 OEM，會變得更垂直整合，而我們的印象是這可能正在加速。我想了解你們的看法：你們是否看到這方面的證據，特別是在較低階的 ROADM 類產品或其他領域？

Yes. I mean I think we're going to continue to focus on innovation and driving innovation. And I think, well, over the last 5 years, there's been a drive for our Chinese-based customers to be more independent. I think our continued push on innovation and new product introductions has kept us in a very, very good position with respect to those leading-edge products. Our participation at the low-end ROADMs in China is not that big as most of those deployments have shifted, and the ASPs per unit are significantly higher on a twin, high-port count product or end by end.

是的。我的意思是，我們會持續專注於創新並推動創新。而且我認為，在過去 5 年，我們的中國客戶確實一直在推動更高的自主性。我認為我們持續推進創新與新產品導入，使我們在這些領先產品上維持非常、非常有利的位置。我們在中國低階 ROADM 的參與度並不高，因為多數部署已經轉移，而且在雙路（twin）、高埠數產品或端到端產品上，每單位 ASP 明顯更高。

Yes. Simon, I'd add to that. Our customers in China also compete in a global market. And our customers or our customers' customers demand the ultimate in performance capability. And that's how we differentiate our products is around performance and capability. And we do -- or have had and continue to have competitors in most of the products that we make, and we feel that if we can continue -- distance between ourselves and our competitors, it's pretty challenging for a customer, if you will, other than if they're willing to compromise performance or capability, which they would struggle to do on a global marketplace.

是的。Simon，我再補充一下。我們在中國的客戶也在全球市場競爭。而我們的客戶或我們客戶的客戶，要求的是最極致的效能能力。我們產品的差異化就在於效能與能力。而且我們在所做的大多數產品上一直都有、也仍然有競爭對手；我們認為，只要我們能持續拉開與競爭對手的距離，對客戶而言就相當具有挑戰性，除非他們願意犧牲效能或能力；但在全球市場上，他們很難這麼做。

Next question comes from George Notter with Jefferies.

下一個問題來自 Jefferies 的 George Notter。

I wanted to ask about the gross margin strength. I was really pretty surprised by it here in the December quarter. Heard the comments about mix improvement as well as just straight-up strength in Datacom and Telecom. But any more kind of flavor you could give us for that optical gross margin strength? And then how do you see gross margins going forward?

我想問一下毛利率走強的原因。我對你們在 12 月季度的表現其實相當驚訝。我聽到了關於產品組合改善，以及 Datacom 和 Telecom 直接走強的評論。但你們能否再多提供一些關於光學毛利率走強的細節？另外，你們如何看待未來的毛利率走勢？

Yes. No. I think -- it's Wajid here. I think you've captured it pretty well. Our gross margins came in a little bit better than we expected during the quarter primarily because of the acquisition synergies continuing to flow through. As we noted in our script, we're expecting those acquisition synergies to continue through the calendar year 2020. And we've increased that number from $100 million to $110 million. If you take a look at our operating margin guidance, which is really a slowdown of our gross margin improvements, for Q3, you can see that year-on-year, we're expecting to increase substantially despite the fact that our revenues are going to be down year-over-year because of the coronavirus situation. And so we're continuing to expect to see improvements in Telecom and Datacom gross margins. Now some of that is being driven by the new products that we have coming out, which are giving us higher standard margins on our products, but some of it is also because of the continued expectation of acquisition synergies to flow through over the next 3 or 4 quarters. The one item just trying on what Alan said earlier, the continued strength in 3D sensing that we're expecting to see over calendar -- should also provide us with a nice boost to gross margins as we enter the back half of calendar 2020. So we're looking forward to that.

是的。不。我是 Wajid。我認為你已經掌握得很到位。我們本季毛利率比預期略好，主要是因為併購綜效持續反映在財務表現中。如同我們在講稿中提到的，我們預期這些併購綜效將在 2020 年曆年持續發酵。而且我們已將該數字從 1 億美元上調至 1.1 億美元。如果你看我們的營業利益率指引（這其實反映毛利率改善的放緩）在第三季的情況，你會看到我們預期年對年將大幅提升，儘管因新冠病毒情勢，我們的營收將年對年下滑。因此，我們仍預期 Telecom 與 Datacom 的毛利率會持續改善。其中一部分來自我們推出的新產品，能為產品帶來更高的標準毛利；但另一部分也來自我們持續預期併購綜效在未來 3 到 4 個季度持續反映。另外補充 Alan 先前提到的一點：我們預期 3D 感測在 2020 年曆年將持續走強，這也應能在 2020 年下半年為毛利率帶來不錯的提振。所以我們很期待。

Just -- sorry, George, the $10 million to $15 million drop of legacy low-margin products going away in Q4, that should also -- that should also help, because those are very poor margins. Those will go away.

另外——抱歉，George——第四季有 1,000 萬到 1,500 萬美元的傳統低毛利產品將退出，這也應該——這也應該會有幫助，因為那些毛利非常差。那些將會消失。

Got it. Okay. And then do the M&A synergies come in, in chunks then? Was that part of the story here in March? Or do they still kind of flow in on a more sort of ratable basis as the year progresses? How should we think about that?

了解。好的。那麼併購（M&A）綜效是會分批進來嗎？這是三月這裡的故事之一嗎？還是說它們仍會在一年推進的過程中，以較為平均、可預期的方式逐步反映？我們應該如何看待這件事？

Yes. So I mean some of it is flowing through, and you'll see some of it in March, and that's why we've been able to guide the operating margins that we have. But you'll see a nice chunk come in our first fiscal quarter of '21 and then flow through to the December quarter in fiscal '21 as well.

是的。所以我的意思是，其中一部分正在反映出來，你會在三月看到其中一些，這也是為什麼我們能夠給出目前這樣的營業利益率指引。但你會在我們2021會計年度第一季看到一大段（綜效）進來，之後也會在2021會計年度的12月季度持續反映。

Next question comes from Michael Genovese with MKM Partners.

下一個問題來自MKM Partners的Michael Genovese。

As we think about 3D sensing seasonality for the year. Obviously, you've given March guidance. But is there a reason -- should we think about normal seasonality this year? Or is there a reason to think in June, either an earlier start to programs with existing customers as they do world-facing or new programs, new customers? Is there any reason to think that June should be better than seasonally normal?

當我們思考今年3D感測的季節性。顯然你們已經給了三月的指引。但今年有什麼原因——我們應該把它視為正常的季節性嗎？或者有什麼理由認為六月會不一樣，例如既有客戶的專案更早啟動（不論是後置/世界向鏡頭 world-facing）或新專案、新客戶？有任何理由認為六月會比季節性正常水準更好嗎？

I don't think that there's anything that would be material different with respect to seasonality in the June quarter. We saw a pickup in the June quarter from new products last year, and that usually starts late in the quarter, and I don't see any reason to expect it to be any different this year.

我不認為六月季度在季節性方面會有任何實質性的不同。去年我們在六月季度因新產品而看到回升，而那通常是在季度後段才開始，我看不出今年有任何理由會不同。

Okay. Got it. And as we look at the March guidance that you've given for 3D sensing, and as we sort of try to compare it with the main customer that we know about and what we think about their units. Is there any reason that you'd be materially different? ASPs or market share or inventory? Or would we think that these numbers should actually lineup the customer numbers with your numbers?

好的。了解。那當我們看你們給出的三月3D感測指引，並嘗試把它與我們所知道的主要客戶及其出貨量做比較時。有任何理由會讓你們的表現出現明顯差異嗎？例如ASP（平均售價）或市占率或庫存？或者我們應該認為這些數字其實會與該客戶的數字對得上？

Well, I think, Mike, we highlighted in prepared remarks where we thought the 3D sensing revenue would be at least from a quarter-on-quarter change. So I think that incorporates all of those questions that you've asked.

嗯，我想，Mike，我們在事先準備的發言中已經強調了我們認為3D感測營收至少在季對季變化上會落在什麼位置。所以我認為那已經把你提出的這些問題都納入了。

Next question comes from Tejas Venkatesh with UBS.

下一個問題來自UBS的Tejas Venkatesh。

I wonder if you could comment on the inventory situation at Huawei and broadly in China.

想請你們評論一下華為以及更廣泛的中國市場的庫存狀況。

Well, I think it's hard to know exactly what's going on with inventories, but I'd say that the majority of our revenue, that are going into our leading customers in China, are for very differentiated products in particular, high-end ROADMs, when -- high-end ROADMs, end-by-end ROADMs where the competition is far behind us. And so I think given that we are constrained in our ability to meet what they're asking for gives me confidence that there's not a warehouse full of high-end ROADMs. I'd say that the rest of the products, where there's more competitors, we are not selling a lot of those things. And in fact, as Chris mentioned, we're getting out of the datacom module business and winding that down in the next several months. And so we're not so concerned about those types of products.

嗯，我認為很難確切知道庫存到底發生了什麼，但我會說，我們在中國的領先客戶所貢獻的大部分營收，來自非常差異化的產品，特別是高階ROADM——高階ROADM、端到端ROADM，在這些產品上競爭對手遠遠落後於我們。因此，鑑於我們在滿足他們需求方面仍受產能限制，這讓我有信心：不太可能有一整個倉庫堆滿高階ROADM。至於其他競爭者較多的產品，我們並沒有賣很多。而且事實上，如Chris提到的，我們正在退出資料通訊（datacom）模組業務，並在接下來幾個月逐步收尾。所以我們對那類產品不會那麼擔心。

And as a follow up, what was Android 3D sensing revenue in the December quarter? And how are you thinking about the next few quarters?

追問一下，12月季度Android的3D感測營收是多少？以及你們如何看待接下來幾個季度？

Yes. We are not going to continue to break out Android revenue. Obviously, we have a large customer driving the vast majority of our revenue. And so that -- and providing that will be disclosing confidential information. I think from a trajectory standpoint, we're certainly seeing Android funnel building up as more customers incorporate 3D sensing in more models. There has been a little bit of a hit to the Android market, with, obviously, Huawei being a major customer -- or a major smartphone supplier, and therefore, a major customer of 3D sensing lasers. And with their inability to get things like Google Apps and challenges around the Android operating system due to the current restrictions. We believe their volumes of high-end smartphones sold out outside of China are more limited, and that's muted some of the growth that we had previously anticipated in Android. But with that said, the customers are lining up, particularly around the world-facing capability or computational photography and more or less saying that's just a feature of their new dual, triple and quad cameras moving forward. And I think over the next 12 to 24 months, there's also a time period where augmented reality -- virtual reality applications are potentially going to emerge more visibly for consumer devices. And that will give other motivation to Android suppliers to adopt 3D sensing.

是的。我們不會再繼續單獨揭露Android營收。很明顯，我們有一個大客戶貢獻了我們絕大多數的營收。因此——若提供那項資訊將會揭露機密資訊。從趨勢來看，隨著更多客戶在更多機型中導入3D感測，我們確實看到Android的漏斗正在建立。Android市場確實受到一些衝擊，因為顯然華為是主要客戶——或主要智慧型手機供應商，因此也是3D感測雷射的重要客戶。而由於目前限制，他們無法取得像Google Apps這類服務，且在Android作業系統方面也面臨挑戰。我們認為他們在中國以外市場的高階智慧型手機銷量更受限，這使得Android的成長低於我們先前的預期。但即便如此，客戶正在排隊，特別是圍繞後置/世界向（world-facing）能力或計算攝影，或多或少都在說：這將成為他們未來雙鏡頭、三鏡頭與四鏡頭新機的標配功能。我認為在接下來12到24個月，也會有一段時間讓擴增實境（AR）——虛擬實境（VR）應用在消費性裝置上更明顯地浮現。這也會提供另一個動機，促使Android供應商採用3D感測。

Next question comes from Meta Marshall with Morgan Stanley.

下一個問題來自Morgan Stanley的Meta Marshall。

Great. Maybe just 1 clarification and 1 question. On the clarification, should all the incremental synergies that you guys are talking about, the kind of 30 that are remaining, should that mostly be in gross margins or should we expect some of that in OpEx? And then for my question, coronavirus aside on kind of the supply-constrained products, how much incremental capacity could you be adding kind of on a quarter-on-quarter basis? Or should we be thinking of incremental capacity that could be added?

很好。我這邊可能一個釐清與一個問題。先釐清一下，你們提到的新增綜效，那剩下大約30（的部分），主要會反映在毛利率上嗎？還是我們應該預期其中一些會反映在營業費用（OpEx）？然後我的問題是，先不談新冠病毒，對於那些供應受限的產品，你們每一季大概能增加多少額外產能？或者我們應該如何思考可增加的增量產能？

Yes. So on the synergies question, it will be in our gross margins. We're seeing most of the benefits coming through in our cost of sales as our operations team has been able to continuously beat every target that we've put in front of them. So we should see that in the gross margins primarily flowing through. Our operating expenses, we're continuing to invest heavily in R&D, especially with the growth that Alan talked about earlier and within our transmission product lines. And so some of it will be reinvested back in there. As far as your question on coronavirus. Alan, did you want to take that?

是的。關於綜效的問題，它會反映在我們的毛利率。我們看到大部分效益是透過銷貨成本端體現，因為我們的營運團隊持續達成、甚至超越我們給他們的每一個目標。所以主要會在毛利率上反映出來。至於營業費用，我們仍在研發（R&D）上大力投資，尤其是Alan先前談到的成長，以及我們的傳輸產品線。因此其中一部分會再投入到那裡。至於你關於新冠病毒的問題。Alan，你要回答嗎？

Well, I think this question was really setting aside the coronavirus. The capacity growth on constrained products. I'd say on the biggest area for opportunity in my mind, well, 2 areas is our datacom chip revenue that grew substantially quarter-on-quarter last quarter, but was still constrained. I can imagine adding 50% to that capacity over the next 4 to 6 quarters, and we're taking action to do that by adding capacity in our fab in Japan, moving equipment from our San Jose fab to our Japan fab and things like that, that will give us that incremental capacity. I'd say the other big area is then the telecom transition. As we shift to DCO modules, average selling price per unit is substantially higher than a ACO module, given that we have a DSP in it. So that's one dynamic, but we are ramping up capacity there. We are also having to increase our capacity in our U.K. wafer fab that supplies all these photonic integrated circuit chips for our coherent components and modules. I hate to give a number on that. But I could imagine 1.5 years from now, having 50% increased revenue in telecom transmission. So I think that the vectors are lining up and demand is very strong.

嗯，我想這個問題其實是先把新冠病毒因素放一邊。談的是受限產品的產能成長。我認為最大的機會領域——我腦中有兩個領域：第一是我們的資料通訊（datacom）晶片營收，上季季對季大幅成長，但仍然受限於產能。我可以想像在未來4到6個季度把那部分產能增加50%，我們也正在採取行動，例如在日本的晶圓廠（fab）增加產能、把聖荷西晶圓廠的設備移到日本廠等，這些都會帶來額外產能。第二個大領域是電信傳輸的轉換。當我們轉向DCO模組時，由於內含DSP，其單位平均售價會顯著高於ACO模組。這是一個動態，同時我們也正在提升那邊的產能。我們也必須提高英國晶圓廠的產能，該廠供應所有用於相干元件與模組的光子積體電路（PIC）晶片。我不太想給出一個數字。但我可以想像在1.5年後，電信傳輸的營收增加50%。所以我認為各項向量正在對齊，需求非常強勁。

Next question comes from Troy Jensen with Piper Sandler.

下一個問題來自 Piper Sandler 的 Troy Jensen。

First off, congrats on really good results here and team did a great job on the operating margins, too.

首先，恭喜你們交出非常好的成果，團隊在營業利益率方面也做得很出色。

Thanks, Troy.

謝謝你，Troy。

So I guess -- and just on that point, just talk about the stability of the operating margins here? I mean, you guys reported here in the December quarter, it was pretty impressive, right? 28.8%, just think of the longer-term model, you've got all these cost synergies coming in, you have a better mix of products. What do you think operating margins look like in coming quarters?

所以我想——也就這點來說，能否談談目前營業利益率的穩定性？我的意思是，你們在 12 月季度所報告的數字相當令人印象深刻，對吧？28.8%，再從長期模型來看，你們有各種成本綜效逐步到位，產品組合也更好。你認為未來幾季的營業利益率會是什麼樣子？

Yes. Troy, I'll start off. It's Wajid here. So what we talked about over the last couple of quarters is our goal is to improve our operating margins year-over-year. And so we've been able to do that in fiscal Q1. We clearly did that in fiscal Q2. And if you take a look at our guidance for fiscal Q3. I think last year, we were under 18% on operating margins and now we're guiding 21% to 23% on lower revenues. And so our operating margin trajectory is going as planned. A lot of it is because we're being quite disciplined from a synergy standpoint. But when you hear capacity constraints, that also means that we're being quite disciplined from a pricing standpoint as well. And our general managers are doing a fantastic job of balancing that with customer requests and customer requirements. In addition to that, Alan mentioned earlier that we're putting in place capacity to increase supply for telecom transmission products as well as datacom chip products. And so because we've got so much leverage in our model even though we're continuing to expect to invest in R&D, with that revenue leverage, we should see operating margins improve. And the last thing is, as we look into the back half of calendar 2020, with increasing content that we're seeing on 3D sensing and the margins you can expect on world-facing products, we expect to see operating margins benefit from that as well. So like Alan said, everything is lining up, and we are doing our best to execute to it. Alan?

是的。Troy，我先開始回答。我是 Wajid。我們在過去幾個季度談到的是，我們的目標是讓營業利益率年對年提升。因此我們在會計年度 Q1 做到了。在會計年度 Q2 也明確做到了。如果你看看我們對會計年度 Q3 的指引。我想去年我們的營業利益率低於 18%，而現在在營收較低的情況下，我們指引為 21% 到 23%。因此我們的營業利益率走勢正按計畫進行。其中很大一部分是因為我們在綜效方面相當自律。但當你聽到產能受限時，也代表我們在定價方面同樣非常自律。而我們的各事業部總經理在平衡客戶需求與客戶要求方面做得非常出色。此外，Alan 先前提到，我們正在建置產能，以增加電信傳輸產品以及資料通訊晶片產品的供給。因此，由於我們的模型具有很高的槓桿，即使我們仍預期持續投資研發，隨著營收槓桿的帶動，我們應該會看到營業利益率改善。最後，當我們展望 2020 年曆年下半年，隨著我們在 3D 感測看到的內容量增加，以及你可以期待在面向世界（world-facing）產品上的毛利率，我們預期營業利益率也會因此受益。所以如同 Alan 所說，一切都在對齊，我們也會盡最大努力去執行。Alan？

Great. I guess my -- might hope to view that you guys can continue these year-over-year growth in the first half of next year, next fiscal year, start to approach 30% model, but I know you won't touch on that. But maybe just for my follow up then. Just can you hit on industrial lasers? Any helps in that the fiber laser business starting to pick up on?

很好。我想——我可能希望看到你們在明年上半年、下一個會計年度上半年仍能維持年對年成長，開始接近 30% 的模型，但我知道你們不會談這個。那作為追問。能否談談工業雷射？光纖雷射業務是否開始回溫、有所起色？

Yes. I mean, as you know, the fiber laser pricing is pretty aggressive, really due to aggressiveness of the Chinese suppliers that are putting pressure across the board on fiber lasers. That said, we do supply a very large percentage of those customers with the fiber laser chips that fuel those engines. And you can imagine those are at semiconductor-type margins. And so we're going to continue to do that. I'd say that there's a lot of new product introductions coming. As I mentioned, the PicoBlade 3 entering new applications for us in ultrafast cutting of OLEDs and 5G antennas as well as printed circuit board bit drilling. And so we're going to continue to invest in new products and lasers, new fiber laser platforms that drive our cost to the point where we need it to be to keep up with the competition or actually exceed the competition. So I think we're seeing ups and downs because we have a pretty concentrated customer base. But I -- as we enter into these new markets and new applications, our customer base should broaden and we should see long-term growth.

是的。如你所知，光纖雷射的定價相當激進，主要是因為中國供應商的積極競爭，對整體光纖雷射市場造成全面性的價格壓力。話雖如此，我們確實向其中很大比例的客戶供應驅動那些系統的光纖雷射晶片。你可以想像，那些晶片的毛利率接近半導體類型的水準。因此我們會持續這麼做。我會說，接下來會有很多新產品導入。如我提到的，PicoBlade 3 正進入我們在 OLED 超快切割、5G 天線，以及印刷電路板微鑽孔等新應用。因此我們會持續投資新產品與雷射，以及新的光纖雷射平台，把成本推進到我們需要的水準，以跟上競爭，甚至超越競爭對手。所以我認為我們會看到一些起伏，因為我們的客戶基礎相當集中。但我——隨著我們進入這些新市場與新應用，我們的客戶基礎應該會擴大，並且我們應該會看到長期成長。

Next question comes from Richard Shannon with Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Richard Shannon。

Maybe a question for Alan on the overall optical environment here. You just raised a convert, got a nice balance sheet here. You've closed a nice acquisition of Oclaro here. Wondering what your views are on further industry consolidations, specifically in Lumentum's participation in that? Do you expect or continue looking for acquisitions and potentially large ones?

也許有個問題想請教 Alan，關於整體光學產業環境。你們剛發行了可轉債，資產負債表也很不錯。你們也完成了對 Oclaro 的一筆很好的收購。想請問你對進一步的產業整併有何看法，特別是 Lumentum 在其中的參與？你是否預期或仍會持續尋找收購機會，甚至可能是大型收購？

I mean, I think, we always look for acquisitions that provide shareholder value. I think the challenge with some of those are that you have to have a willing seller at the right price. And we're going to continue to have a funnel of targets that we look at all the time. And when we reach agreement with 1 of them, we'll let you know. I think that the industry is getting healthier. The dynamics are much healthier with a lot of the acquisitions that have already taken place. But I do think that there's still more to come that will even make the dynamics of the industry more healthy.

我的意思是，我們一向都在尋找能為股東創造價值的收購案。我認為其中的挑戰在於，你必須在合適的價格找到願意出售的賣方。我們會持續維持一個我們隨時都在評估的目標名單（pipeline）。當我們與其中一個達成協議時，我們會告訴你們。我認為這個產業正在變得更健康。隨著許多已經發生的收購案，產業動態也健康得多。但我確實認為，後續仍會有更多整併，讓產業動態變得更加健康。

I think, Richard, something you brought up is participate in the benefit of it, not only can we participate in the benefit by acquiring companies and integrating and achieving the synergies as we've done, but also by being a bystander and others consolidating in the industry. Everybody benefits from there being fewer players competing for the customer opportunities.

Richard，你提到的一點是參與其帶來的好處；我們不僅可以透過收購公司、整合並實現綜效（就像我們已經做過的）來受益，也可以在旁觀的情況下，讓產業中其他公司進行整併而受益。當競爭同一客戶機會的參與者變少時，大家都會受益。

Okay. Fair enough. My follow-up question is on 3D sensing. Specifically on the kind of the pricing dynamics you expect going forward throughout this year. Your discussion on previous questions around competition suggests you don't see a big change in that environment. So are you expecting pricing curves kind of being similar, at least on a like-for-like basis this year [than] you've seen in past years?

好的。可以理解。我的追問是關於 3D 感測。特別是你們預期今年接下來的定價動態會如何。你們在前面幾個問題中對競爭的討論顯示，你們似乎不認為那個環境會有很大的改變。所以你們是否預期今年在同等條件（like-for-like）的基礎上，價格曲線大致會與過去幾年相似？

Well, I mean, I think, we continue to focus on driving our cost down to satisfy our customers' desire and need for lower cost solutions, especially as they add more content per phone or per device, I'd say. And so we're focused on maintaining our gross margins in that business, and we're confident that continuing to come down on the price curve and cost curve will allow us to continue to have a huge share of that market and happy customers. And so -- at the gross margins that we need. So I think from that perspective, I think as we refresh the products, and we're expecting a pretty good refresh on all of the products, most of the products, I should say, this coming year. We have an opportunity for pricing to not have gone through 3 years of price reductions. And so I think from that perspective, we're pretty comfortable with where we are from a gross margin standpoint.

嗯，我的意思是，我認為我們會持續專注於降低成本，以滿足客戶對更低成本解決方案的期望與需求，尤其是當他們在每支手機或每個裝置上加入更多內容量時。因此我們專注於維持該業務的毛利率，我們也有信心，持續沿著降價曲線與降成本曲線前進，將使我們能夠繼續在該市場保持很高的市占率，並讓客戶滿意。也就是在我們所需要的毛利率水準下。所以從這個角度來看，當我們更新產品時——我們預期明年所有產品中有相當不錯的更新，我應該說是大多數產品——我們有機會讓定價不必承受已經歷 3 年降價的壓力。因此從這個角度來看，就毛利率而言，我們對目前的狀況相當有信心。

Next question comes from Tim Savageaux with Northland Capital.

下一個問題來自 Northland Capital 的 Tim Savageaux。

Congrats on the results. I have initial question on the demand front. And maybe a quick follow up on gross margins. And from a demand perspective, but to kind of get your thoughts on what appears to be almost historically strong Telecom, Datacom demand. It looks like x the impact of the virus, you might be guiding up mid, maybe even high single digits and a normally seasonally down quarter. Historically, in the March quarter, we've seen that before, kind of a very strong surge in China back a few years ago. But I wonder if you could characterize what's driving that? And whether it is in maybe 5G-driven demand strength out of China? Or to what extent your own share gains or perhaps the new normal that you've previously referenced from an ASP standpoint are driving what looks to be pretty extraordinarily strong demand in Telecom and Datacom?

恭喜這次的業績表現。我先就需求端有個初步問題。另外也想快速追問一下毛利率。從需求的角度來看，想請教你們對於目前看起來幾乎是歷史性強勁的電信與資料通訊需求有何看法。看起來若排除病毒的影響，你們在一個通常季節性走弱的季度，指引可能會上調到中個位數、甚至高個位數成長。過去在 3 月季度，我們曾看過類似情況，例如幾年前中國出現非常強勁的激增。但我想請你們描述一下，這波成長的驅動因素是什麼？是否是由中國的 5G 驅動需求強勁所帶動？或者在多大程度上，是你們自身的市占提升，或是你們先前提到從 ASP（平均售價）角度的「新常態」，在推動電信與資料通訊看起來相當異常強勁的需求？

Yes. I'd say that we have a competitive advantage with respect to a lot of our products and technologies that drive demand. And in particular, if you look at our datacom chip business we have an enabling technology with our EMLs to really drive next-generation product introductions at 400G for data center. So I think we're seeing a lot of strength in hyperscale data center growth, and we're in the early stages of 5G demand using similar type of technology in chips. And so I'd say, we're in the front end of that. But the demand across the board is quite strong on datacom chips. On the telecom side, again, I think it's a differentiation standpoint. And our ROADMs are -- we have a huge lead in technology and product on that. And on our transmission side, we're enabling customers to produce 800 gig transmission, coherent transmission with the enabling technology at our photonic integrated circuit level. So I think that's what's driving a lot of the demand. And having the leadership that we had on ACOs, and now hopefully, on DCOs in the coming years, will drive incremental growth in our telecom transmission business.

是的。我會說，我們在許多能帶動需求的產品與技術方面具備競爭優勢。特別是如果你看我們的資料通訊晶片業務，我們的 EML 具備關鍵使能技術，能真正推動資料中心 400G 的下一代產品導入。因此我認為我們看到超大規模（hyperscale）資料中心成長非常強勁，而 5G 需求也正處於早期階段，並在晶片上採用類似類型的技術。所以我會說，我們正站在這波趨勢的前端。但整體而言，資料通訊晶片的需求相當強勁。在電信方面，同樣我認為是差異化的因素。我們的 ROADM——在這方面我們在技術與產品上有很大的領先。在傳輸端，我們透過光子積體電路層級的使能技術，協助客戶實現 800G 傳輸與相干（coherent）傳輸。所以我認為這些就是推動大量需求的原因。而我們在 ACO 上的領導地位，以及未來幾年希望在 DCO 上也能取得領先，將帶動我們電信傳輸業務的增量成長。

Yes. I think, Alan, it's an elm ahead as Kim summarized it well. It's a strong market, fewer competitors and very differentiated products. All 3 of the 2 -- or all 3 compound positively.

是的。我想，Alan，正如 Kim 總結得很到位，我們在 EML 上領先一步。市場強勁、競爭者更少，而且產品差異化非常明顯。這三項因素——或這三者——都在正向疊加。

Sounds like a decent environment. And to follow up on that datacom chip. Maybe that was the real surprise driving gross margins. Maybe a little bit better than you expected, but a lot better than I expected, maybe 300, 400 basis points. With optical com margins looking to get into the mid 40s here, would it be fair to characterize those datacom device drivers as sort of key to that? And as you look forward into at least some growth, even with the virus impact in the March quarter. From a mix standpoint or any others, is there any other reason to believe those margins would decline sequentially in optical com? Or is most of the sequential gross margin decline a result of lower 3D sensing volumes and margins?

聽起來環境不錯。接著追問資料通訊晶片。也許那才是推動毛利率的真正驚喜。可能比你們預期好一點，但比我預期好很多，可能高出 300、400 個基點。在光通訊毛利率看起來要進入 40% 中段的情況下，是否可以說資料通訊裝置的驅動因素是其中的關鍵？而展望未來，即使 3 月季度受到病毒影響仍有一定成長。從產品組合或其他因素來看，是否還有任何理由相信光通訊的毛利率會季比下滑？或者大部分季比毛利率下滑其實是因為 3D 感測（3D sensing）出貨量與毛利率較低所致？

Yes. So let me start off, and then Alan can jump in. So historically, we've seen a seasonal decline in both revenues and gross and operating margins going from our fiscal Q2 to fiscal Q3. And just a reminder, last year, our operating margins for fiscal Q3 were under 18%. And so that normal seasonality does give us normal gross, and operating margins come down. Because we have a pretty substantial manufacturing infrastructure that we've got to support. And so revenue levels do matter. We provided guidance from March to the best of our abilities. But what you've heard from Alan is that we've got a number of tailwinds that are working in our favor. Obviously, the datacom chips being on supply constraints and us investing in more capacity because we see demand there is giving us a tailwind. 3DS growing into the back half of the year, that's giving us a tailwind. We've got acquisition synergies that are flowing through all of calendar year 2020. And then we've got top line growth in transmission that's going to give us leverage on the top line and allow us to have better operating margins as the calendar year flows through. So we've got everything working in our favor in order to help us improve gross margins and resulting operating margins. I mentioned earlier that we are investing a little bit more in R&D, especially in transmission business, but that shouldn't be so much that it offsets the leverage and the tailwinds we see in datacom, 3DS as well as acquisition synergies. So where it's going to be in March, we've guided to. But what we see for the balance of calendar year 2020, I think you've got kind of all you need to help you with your model.

是的。我先回答，之後 Alan 也可以補充。歷史上，我們從會計年度第 2 季到第 3 季，營收以及毛利率與營業利益率都會出現季節性下滑。提醒一下，去年我們會計年度第 3 季的營業利益率低於 18%。因此這種正常的季節性會使毛利率與營業利益率回落。因為我們必須支撐相當可觀的製造基礎設施。所以營收水準確實很重要。我們已在能力所及範圍內提供 3 月的指引。但你從 Alan 那裡也聽到，我們有多項順風因素正在發揮作用。顯然，資料通訊晶片目前供給受限，而我們因看見需求而投資擴充產能，這對我們是順風。3D 感測在今年下半年成長，這也是順風。我們的併購綜效將在 2020 全年逐步反映。此外，傳輸業務的營收成長將在營收端帶來槓桿效應，並讓我們在 2020 年推進過程中擁有更好的營業利益率。因此，我們有各項因素同時朝有利方向運作，以協助提升毛利率以及隨之而來的營業利益率。我先前提到我們會在研發上多投資一些，尤其是在傳輸業務，但這不至於大到抵消我們在資料通訊、3D 感測以及併購綜效上看到的槓桿與順風。至於 3 月會落在哪裡，我們已給出指引。但就 2020 年剩餘期間而言，我認為你已經擁有建立模型所需的關鍵資訊。

We've reached the end of the allotted time. I will now turn the call back over to Mr. Alan Lowe.

我們已到達預定時間的結束。現在我將把電話會議交回給 Alan Lowe 先生。

Great. Thank you, operator. We regularly discuss our business at investor events. These events are listed on our website in the Investor Relations section and are regularly updated.

很好。謝謝你，接線員。我們會在投資人活動中定期討論我們的業務。這些活動列於我們網站的投資人關係（Investor Relations）專區，並會定期更新。

This concludes our call for today. We'd like to thank everyone for attending, and we look forward to speaking with you again in another few months. Thank you.

今天的電話會議到此結束。感謝各位與會，我們期待在幾個月後再次與各位交流。謝謝。

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

各位女士、先生，今天的電話會議到此結束。感謝各位參與。您現在可以掛線。