Lumentum Holdings Inc. (LITE) 2016 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Lumentum fiscal first-quarter 2016 conference call.

各位女士、先生，大家好，歡迎參加 Lumentum 2016 會計年度第一季財報電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Chris Coldren, Vice President Strategy and Corporate Development. Sir, you may begin.

提醒各位，本次電話會議將被錄音。現在我想介紹今天會議的主持人：策略與企業發展副總裁 Chris Coldren 先生。先生，您可以開始了。

Thank you, operator. Welcome to Lumentum's first-quarter FY16 earnings call. My name is Chris Coldren, Vice President of Strategy and Corporate Development. Joining me on today's call are Alan Lowe, President and Chief Executive Officer, and Aaron Tachibana, Chief Financial Officer.

謝謝，接線員。歡迎參加 Lumentum 2016 會計年度第一季（FY16）財報電話會議。我是策略與企業發展副總裁 Chris Coldren。今天與我一同出席的有總裁兼執行長 Alan Lowe，以及財務長 Aaron Tachibana。

As we discuss our first-quarter results, please note that we separated from JDSU, now named Viavi Solutions, and became an independent public company on August 1, 2015, five weeks into the first quarter of FY16. Our first-quarter results, therefore, include certain allocated costs from Viavi that will not be incurred in future quarters. Where possible, we will highlight these non-recurring expenses and their impact.

在我們討論第一季業績時，請注意我們已於 2015 年 8 月 1 日自 JDSU（現更名為 Viavi Solutions）分拆，並成為獨立上市公司；該日期為 FY16 第一季開始後的第五週。因此，我們第一季的結果包含部分由 Viavi 分攤的成本，未來季度將不再發生。在可行的情況下，我們將指出這些一次性費用及其影響。

This call will include forward-looking statements, including statements regarding Lumentum's expected financial performance and cost structure, trends, and our position in our markets, and expectations related to our customers and our products. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations.

本次電話會議將包含前瞻性陳述，包括關於 Lumentum 預期財務表現與成本結構、市場趨勢、我們在各市場中的定位，以及與客戶與產品相關之預期等陳述。這些陳述受到各種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。

We encourage you to review our most recent filings with the SEC, particularly the risk factors described in our FY15 amended 10-K filed on September 29, 2015. The forward-looking statements that we provide during this call, including projections for future performance, are based on our reasonable beliefs and expectations as of today. Lumentum undertakes no obligation to update these statements except as required by applicable law.

我們建議您查閱我們最近向美國證券交易委員會（SEC）提交的文件，特別是我們於 2015 年 9 月 29 日提交之 FY15 修訂版 10-K 中所述的風險因素。我們在本次電話會議中提供的前瞻性陳述（包括對未來表現的預測）係基於截至今日我們合理的信念與預期。除非適用法律要求，Lumentum 不承擔更新這些陳述之義務。

We also note that the financial results reported today are subject to the completion of Lumentum's quarter-end closing and review processes, and actual results could differ materially from these preliminary results. Please also note, unless otherwise stated, all results and projections are non-GAAP. Non-GAAP financials should not be considered as a substitute for or superior to financials prepared in accordance with GAAP.

我們也提醒，今日公布的財務結果仍需完成 Lumentum 季末結帳與審閱流程，實際結果可能與這些初步結果有重大差異。另請注意，除非另有說明，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更優者。

Our press release with our first-quarter FY16 results is available on our website, www.lumentum.com, under the Investors section, and includes additional details about our non-GAAP financial measures and a reconciliation between our GAAP and non-GAAP results. Our website also has our latest SEC filings, which we encourage you to review, and supplementary slides relating to today's earnings release. Finally, a recording of today's call will be available by 6 PM Pacific time this evening on our website.

我們公布 FY16 第一季結果的新聞稿已發布於公司網站 www.lumentum.com 的「投資人」專區，並包含關於非 GAAP 財務衡量指標的更多細節，以及 GAAP 與非 GAAP 結果之間的調節表。我們的網站亦提供最新的 SEC 申報文件（建議您查閱），以及與今日財報發布相關的補充簡報。最後，今日電話會議的錄音將於今晚太平洋時間 6 點前於我們網站提供。

Now, I'd like to turn the call over to Alan for first-quarter business highlights.

現在，我想把電話交給 Alan，請他分享第一季的業務重點。

Thank you, Chris. We solidly executed our plans in our first-quarter as Lumentum. And I want to thank our employees for their hard work and dedication during the spin out that allowed us to perform from the start.

謝謝你，Chris。作為 Lumentum 的第一個季度，我們確實穩健地執行了既定計畫。我也要感謝全體員工在分拆期間的辛勤付出與投入，讓我們從一開始就能維持良好表現。

Our first-quarter FY16 revenue at $212.6 million was above the midpoint of our guidance of $205 million to $215 million. At our August conference call we provided guidance which equated to non-GAAP operating margins of approximately 5% to 8%, assuming we were a standalone company through the entire quarter. Had we been standalone for the entire quarter, our operating margins would have been 8.3% and our earnings per share would have been $0.29. Aaron will discuss this in more detail shortly.

FY16 第一季營收為 2.126 億美元，高於我們指引區間 2.05 億至 2.15 億美元的中點。在 8 月的電話會議中，我們提供的指引相當於（假設整個季度皆為獨立公司）非 GAAP 營業利益率約 5% 至 8%。若我們整個季度皆為獨立公司，營業利益率將為 8.3%，每股盈餘將為 0.29 美元。Aaron 稍後會更詳細說明。

Now for more details on our business performance. First-quarter optical communications revenue were $177 million. As expected, we saw strong growth in our telecom products. Telecom revenue grew to $132.7 million, up $6.8 million or approximately 5% sequentially.

接下來說明我們業務表現的更多細節。第一季光通訊營收為 1.77 億美元。如預期所示，我們的電信產品呈現強勁成長。電信營收增至 1.327 億美元，較前一季增加 680 萬美元，約季增 5%。

Telecom growth was driven primarily by the rapid growth of our industry-leading TrueFlex ROADMs. We saw our overall ROADM revenue grow by more than 15% sequentially with our TrueFlex ROADMs and blades growing more than 27%. We are currently on allocation for our TrueFlex ROADMs and are adding capacity to satisfy the strong demand from multiple customers. We believe that this strong demand is due to share gains at key customers supplying into metro deployments, as well as broad market adoption due to our superior product performance.

電信成長主要由我們業界領先的 TrueFlex ROADM 快速成長所帶動。我們整體 ROADM 營收季增超過 15%，其中 TrueFlex ROADM 與刀片（blades）季增超過 27%。目前 TrueFlex ROADM 供貨處於配給狀態，我們正在擴充產能，以滿足多家客戶的強勁需求。我們認為此強勁需求來自於在關鍵客戶的市占提升（其供應都會網部署），以及由於我們產品效能更優而帶動的廣泛市場採用。

In addition, our pump laser revenue grew approximately 18%, to a revenue level we had not achieved since 2006 as our customers continue to ramp shipments for new optical network infrastructure. This situation is typically a good leading indicator for further network deployments.

此外，隨著客戶持續提升新光網路基礎建設的出貨量，我們的泵浦雷射營收約成長 18%，達到自 2006 年以來未曾達到的營收水準。此情況通常是後續網路部署的良好領先指標。

Datacom revenue declined to $35.7 million, down from $41.7 million in the prior quarter, and consistent with our commentary on our last call. We are very pleased with our 100-gig datacom pipeline and believe our new QSFP28 offering will more than make up for the declines and lower speed datacom revenues during calendar 2016.

數據通訊（datacom）營收降至 3,570 萬美元，低於前一季的 4,170 萬美元，並與我們上次電話會議的評論一致。我們對 100G 數據通訊的商機管線感到非常滿意，並相信我們新的 QSFP28 產品將在 2016 年曆年期間，足以彌補低速數據通訊營收的下滑。

Industrial and consumer revenue was $8.6 million, and declined $2.6 million quarter on quarter due to an industrial diode laser customer delaying orders. 3D sensing revenue remained flat from the prior quarter.

工業與消費性營收為 860 萬美元，較前一季減少 260 萬美元，原因是一家工業二極體雷射客戶延後下單。3D 感測營收與前一季持平。

Commercial lasers revenue at $35.6 million was up $5.6 million or approximately 19% quarter on quarter. Lasers growth was primarily driven by our kilowatt fiber laser which approximately doubled sequentially, and achieved year-on-year growth with our second-highest fiber laser quarter ever. Our solid-state laser revenue was down as these products serve manufacturing markets which we believe have slowed.

商用雷射營收為 3,560 萬美元，較前一季增加 560 萬美元，約季增 19%。雷射成長主要由我們的千瓦級光纖雷射帶動，該產品營收季比約翻倍，並在我們歷來第二高的光纖雷射季度中實現年增成長。我們的固態雷射營收下滑，因為這些產品服務的製造業市場我們認為已放緩。

Because we entered the quarter with strong backlog of previously placed orders, and the high relative percentage of our business in which we have DMI arrangements with our customers, our book-to-bill was below 1 for both optical communications and lasers.

由於我們在本季開始時已有先前下單的強勁積壓訂單（backlog），且我們業務中相當高的比例與客戶採用 DMI 安排，因此光通訊與雷射兩個業務的接單出貨比（book-to-bill）皆低於 1。

I will now turn the call over to Aaron for financial results and highlights.

接下來我把電話交給 Aaron，請他說明財務結果與重點。

Thank you, Alan. As Alan highlighted, net revenue for the quarter was $212.6 million, and above the midpoint of our guidance of $205 million to $215 million. GAAP gross margin was 31.5% for the first quarter, and increased 110 basis points quarter to quarter. GAAP operating margin was a loss of 1.2%, and GAAP loss per share $0.01.

謝謝你，Alan。如 Alan 所強調，本季淨營收為 2.126 億美元，高於我們指引區間 2.05 億至 2.15 億美元的中點。第一季 GAAP 毛利率為 31.5%，較前一季提升 110 個基點。GAAP 營業利益率為 -1.2%（虧損），GAAP 每股虧損為 0.01 美元。

Our non-GAAP gross margin was 32.8%, and increase 80 basis points relative to the prior quarter, due to higher optical communications gross margins resulting from cost reduction and favorable mix of new products. Non-GAAP operating margin for the first quarter was 7.4%. Non-GAAP earnings per share were $0.26 based on the fully diluted share count of 59.7 million, $200,000 in tax expense, and immaterial other interest and expense. Please note that all reported results include allocations from Viavi for the five-week stub period when we were still part of Viavi.

非 GAAP 毛利率為 32.8%，較前一季提升 80 個基點，主要因光通訊毛利率提高，受惠於成本降低以及新產品較有利的產品組合。第一季非 GAAP 營業利益率為 7.4%。非 GAAP 每股盈餘為 0.26 美元，係以完全稀釋後股數 5,970 萬股、20 萬美元所得稅費用，以及不具重大性的其他利息與費用計算。請注意，所有已報告結果均包含我們仍屬於 Viavi 的五週過渡期間（stub period）由 Viavi 分攤的費用。

Now that we have three months of standalone operations under our belt, we have actual run rate SG&A costs. Our standalone SG&A costs are significantly lower than those allocated to us by Viavi. For the first quarter, had we been standalone for the entirety of the quarter, our operating margin would have been 8.3%, and earnings per share would have been $0.29.

在完成三個月的獨立營運後，我們已掌握實際的銷售、一般及行政（SG&A）費用的常態化水準。我們獨立公司的 SG&A 成本顯著低於 Viavi 分攤給我們的金額。就第一季而言，若我們整個季度皆為獨立公司，營業利益率將為 8.3%，每股盈餘將為 0.29 美元。

Please note that in our press release, our GAAP and non-GAAP results are qualified with the word -- preliminary. Earlier today we filed for an extension with the SEC to give us an additional five days to file our 10-Q for the first fiscal quarter of 2015.

請注意，在我們的新聞稿中，我們的 GAAP 與非 GAAP 結果均以「— 初步（preliminary）」一詞加以限定。今天稍早，我們已向 SEC 申請展延，以便額外取得五天時間提交 2015 會計年度第一季的 10-Q。

As of today, the allocated costs and our opening balance sheet from the Viavi stub are not yet finalized. We will use the additional five days to finalize the stub period results, along with Viavi, who also reported similar preliminary results. The allocated SG&A costs do not have any relationship to the standalone costs of Lumentum but do need to be finalized for compliance purposes.

截至今日，來自 Viavi 過渡期間的分攤成本以及我們的期初資產負債表尚未最終定案。我們將利用額外的五天與 Viavi 一同完成過渡期間結果的定案；Viavi 也公布了類似的初步結果。分攤的 SG&A 成本與 Lumentum 獨立公司的成本並無關聯，但為符合法規遵循目的仍需完成定案。

Optical communications revenue was $177 million, which was a decline of approximately 1% relative to the prior quarter driven by a $6 million decline in datacom revenues. Telecom revenues increased $6.8 million sequentially to $132.7 million, inclusive of WaveReady revenues, which declined by $400,000 sequentially.

光通訊營收為 1.77 億美元，較前一季約下降 1%，主要由數據通訊營收下滑 600 萬美元所致。電信營收季增 680 萬美元至 1.327 億美元，其中包含 WaveReady 營收；WaveReady 營收較前一季減少 40 萬美元。

Optical communications gross margin was up at 110 basis points to 31.5%, as we saw the benefit of cost reduction activities and more favorable mix of new products. Note, the prior quarter's gross margin to which we are comparing includes the impact of WaveReady which adds approximately 40 basis points to the CCOP segment gross margins Viavi reported for the fourth quarter of 2015. Our optical communications gross margin at 31.5% was the highest it's been in over two years.

光通訊毛利率提升 110 個基點至 31.5%，因我們看見成本降低措施的效益，以及新產品較有利的產品組合。請注意，我們用來比較的前一季毛利率包含 WaveReady 的影響；WaveReady 約為 Viavi 於 2015 年第四季所報告之 CCOP 部門毛利率增加約 40 個基點。我們 31.5% 的光通訊毛利率為兩年多以來最高水準。

Commercial lasers revenue was $35.6, an increase of approximately 19% quarter on quarter driven by sequential fiber laser growth. Gross margin at 39.9% declined 150 basis points, primarily due to the impact of timing of annual price reduction compared with planned cost reduction.

商用雷射營收為 35.6（美元百萬），較上一季增加約 19%，主要由光纖雷射的季增成長所帶動。毛利率為 39.9%，下滑 150 個基點，主要係年度降價時點相較於既定成本降低時點的影響所致。

Reported operating expenses totaled $54.1 million, with R&D expense of $32 million and SG&A expense at $22.1 million. The SG&A expense included allocated costs from Viavi based on our expense structure as a standalone company, was a $2 million higher than it would've been on a standalone basis.

揭露之營業費用合計為 5,410 萬美元，其中研發費用為 3,200 萬美元，銷售、一般及行政（SG&A）費用為 2,210 萬美元。SG&A 費用包含 Viavi 依我們作為獨立公司之費用結構所分攤的成本，較若以獨立公司基礎計算本應發生的金額高出 200 萬美元。

Our income tax expense was $0.2 million for a non-GAAP tax rate of 1.4%. At the time of separation from Viavi we were able to establish an entity structure from Lumentum that would allow for single-digit tax rate for the first couple of years as a standalone public company and then remain below 12% to 13% longer term. We were able to utilize approximately $1.1 billion of Viavi's net operating losses to provide Lumentum with an optimized structure going forward.

我們的所得稅費用為 20 萬美元，對應之非 GAAP 稅率為 1.4%。在自 Viavi 分拆之時，我們得以自 Lumentum 建立一個實體架構，使我們在作為獨立上市公司之最初幾年可維持個位數稅率，且長期仍可維持在 12% 至 13% 以下。我們得以運用約 11 億美元的 Viavi 淨營業虧損（NOL），為 Lumentum 未來提供最佳化的架構。

During the quarter, we had two customers that each contributed 10% or more of our revenue. Our cash balance was $142 million at the end of Q1, and increased approximately $4.5 million from the initial capitalization of about $137.6 million.

本季期間，我們有兩位客戶各自貢獻了 10% 或以上的營收。第一季末我們的現金餘額為 1.42 億美元，較約 1.376 億美元的初始資本額增加約 450 萬美元。

While we are not providing long-term guidance, we believe the past double-digit operating margins is in sight. First, we believe we have a high level of leverage over our operating expenses, and SG&A expenses, in particular. The nature of our business is such that revenue growth was driven primarily by increases in sales to the customers with which we are currently engaged versus adding a significant number of new customers. Second, we believe we have growth opportunities in both optical communications and our lasers business that each alone could drive incremental margin sufficient for 10% or higher operating margins at the consolidated Lumentum level.

雖然我們不提供長期財測指引，但我們認為過去的雙位數營業利益率已在望。第一，我們認為我們對營業費用，尤其是 SG&A 費用，具有高度槓桿效應。我們的業務性質使得營收成長主要來自於對目前已合作客戶的銷售增加，而非新增大量新客戶。第二，我們認為在光通訊與雷射業務兩方面皆有成長機會，且任一項單獨都可能帶來足以推動 Lumentum 合併層級達到 10% 或更高營業利益率的增量利潤。

I will now turn the call over to Alan for guidance for the second quarter of FY16, and closing remarks.

接下來我將把電話交給 Alan，請他提供 2016 會計年度第二季的指引與結語。

Thank you, Aaron. We project revenue for the second quarter of FY16 to be in the range of $212 million to $222 million, with operating margins in the range of 7.5% to 9.5%, and earnings per share to be in the range of $0.26 to $0.30. Our expectations for the second quarter include growth in optical communications revenue. Telecom revenues are projected to be up quarter on quarter as we continue to see increasing demand across many of our product lines, especially our TrueFlex ROADMs.

謝謝你，Aaron。我們預估 2016 會計年度第二季營收將落在 2.12 億至 2.22 億美元之間，營業利益率落在 7.5% 至 9.5% 之間，每股盈餘落在 0.26 至 0.30 美元之間。我們對第二季的預期包含光通訊營收成長。隨著我們持續看到多條產品線需求增加，尤其是我們的 TrueFlex ROADM，電信營收預計將較上一季成長。

Looking to the longer term, we believe our ROADM-based products to be a growth driver for total Lumentum revenues, as we believe the North American metro deployments expected to begin next calendar year are the start of a larger cycle of network upgrades around the world in the coming years. Network operators in China who have not historically purchased ROADMs are taking steps to start deploying ROADMs within the next year.

放眼較長期，我們認為以 ROADM 為基礎的產品將成為 Lumentum 總營收的成長動能，因為我們相信預計於下一個曆年開始的北美都會區部署，將是未來數年全球更大一波網路升級循環的起點。中國的網路營運商過去並未大量採購 ROADM，目前也正採取措施，計畫在未來一年內開始部署 ROADM。

On 100-gig telecom, we expect continued strength in discrete components. We continue to make progress in developing our 100G CFP2-ACO product based on our unique single transmitter chip approach, which will provide our customers with a higher density, lower power consumption and lower cost they need to shift away from the current discrete solutions.

在 100G 電信方面，我們預期分立元件將持續強勁。我們持續推進以我們獨特的單一發射器晶片方案為基礎的 100G CFP2-ACO 產品開發，該產品將為客戶提供更高密度、更低功耗與更低成本，以滿足其從目前分立式解決方案轉移的需求。

Datacom revenue is projected to be roughly flat quarter on quarter. With strong customer traction we expect increased revenue this quarter from our market-leading 100-gig QSFP28 transceivers. The 100-gig Datacom upgrade cycle, which we anticipate to commence in the next calendar year, will also be a significant potential driver of revenue growth for Lumentum.

資料通訊（Datacom）營收預計較上一季大致持平。隨著客戶採用動能強勁，我們預期本季來自我們市場領先的 100G QSFP28 收發器的營收將增加。我們預期將於下一個曆年開始的 100G Datacom 升級循環，也將成為 Lumentum 營收成長的重要潛在驅動因素。

Demand for our commercial lasers is likely to be approximately flat to slightly down quarter on quarter. The December quarter is seasonally slower for lasers for semiconductor processing and applications and we are seeing softness in these markets more broadly. While not a contributor in growth in the first quarter, we continue to make solid progress on design wins for our new ultra-fast laser products and expect they will be a growth the driver for us in quarters to come.

我們的商用雷射需求可能較上一季約略持平至小幅下滑。12 月季度在半導體製程與應用的雷射方面具有季節性較淡的特性，我們也看到這些市場整體更廣泛的疲弱。雖然第一季並未成為成長貢獻者，我們在新一代超快雷射產品的設計導入（design wins）方面仍持續取得扎實進展，並預期其將在未來幾季成為我們的成長動能。

Fiber laser demand over the long-term should be strong as the conversion from CO2 to fiber lasers is still relatively low. Our industrial and consumer revenue is expected to increase modestly sequentially. We continue to expect our 3D sensing revenue to modestly grow throughout the fiscal year as we are now shifting production volume for new personal computer applications. Furthermore, we believe this business could continue to strengthen over the longer term, as more consumer electronic devices incorporate 3D sensing capability.

長期而言，光纖雷射需求應會強勁，因為從 CO2 雷射轉換至光纖雷射的滲透率仍相對偏低。我們的工業與消費性營收預期將較上一季小幅增加。我們仍預期 3D 感測營收將在本會計年度內溫和成長，因為我們正將新個人電腦應用的產量提升至量產規模。此外，我們認為隨著更多消費性電子裝置導入 3D 感測能力，該業務在更長期仍可持續走強。

We expect that our operating expenses will remain approximately flat relative to the reported non-GAAP operating expenses in the first quarter. We expect lower SG&A expenses than our reported numbers due to having an entire quarter of our lower standalone cost structure. But this will be offset by both annual salary increases and higher R&D expenses, as we continue to introduce and ramp our new differentiated products to exploit the market opportunities we have ahead.

我們預期營業費用相較於第一季揭露的非 GAAP 營業費用將大致持平。由於我們將完整享有較低的獨立公司成本結構，我們預期 SG&A 費用將低於本次揭露數字。但此效益將被年度薪資調升與更高的研發費用所抵銷，因為我們持續推出並放量我們具差異化的新產品，以掌握未來的市場機會。

In closing, I would like to thank our customers, our suppliers, our shareholders, and especially our employees who have performed incredibly during the first few months of Lumentum. I do believe the future is bright at Lumentum.

最後，我要感謝我們的客戶、供應商、股東，尤其是我們的員工；在 Lumentum 成立的前幾個月，他們的表現非常出色。我確實相信 Lumentum 的未來一片光明。

With that said, I will turn the call back over to Chris to begin the Q&A session.

接下來，我將把電話交回給 Chris，開始問答環節。

Thank you, Alan. Operator, let's begin the question and answer session.

謝謝你，Alan。接線員，我們開始問答環節。

(Operator Instructions)

（接線員指示）

Simon Leopold, Raymond James.

Simon Leopold，Raymond James。

Hi. This is Victor Chu in for Simon Leopold. Can you give us a sense of the volumes you are seeing around 10G in the data center, and maybe the current degree of competition relative to demand? The question I'm trying to drive at is, is there anything you can do to increase the margins in 10G? Or is that part of the business commoditized to the point where there's not too much upside left to the margins?

嗨，我是 Victor Chu，代替 Simon Leopold 發問。你們能否讓我們了解一下你們在資料中心看到的 10G 出貨量情況，以及目前相對於需求的競爭程度？我想追問的是，你們是否有任何方式可以提高 10G 的毛利率？還是說這部分業務已商品化到毛利率幾乎沒有太多上行空間？

This is Chris. At least for our revenues, short reach 10 gig and below is a small percentage of our total revenues and we don't break that out. I think in terms of the margins on those products, I think they are what the market bears at this point.

我是 Chris。至少就我們的營收而言，短距離 10G 及以下產品占我們總營收的比例不高，我們也不會單獨揭露。我認為就那些產品的毛利率而言，目前大致就是市場所能承受的水準。

And I think just to add to that, we have decisions to make whether or not we invest R&D dollars to redesign the 10 gig product to increase those margins were put those R&D resources in next-generation 100-gig. And we've chosen to really focus on the leading time to market 100-gig products that are coming to market right now.

另外補充一下，我們需要做出決策：是否投入研發資金重新設計 10G 產品以提高毛利率，或是把研發資源投入下一代 100G。我們選擇真正聚焦於目前正要上市、並且能夠領先上市時程的 100G 產品。

Okay. Along those lines, there seems to be an increase in appetite for some of the major web scale players in deploying white box equipment. And some of your competitors use less stringent transceivers aimed at PC applications. Do you have an alternative solution for the DC application? I'm trying to drive at if there's something there that might be able to increase margins, as well, if that's something that you're focused on.

了解。沿著這個方向，似乎一些主要的超大規模（web scale）業者對部署白牌（white box）設備的意願正在提高。而你們的一些競爭對手使用較不嚴格規格、面向 PC 應用的收發器。你們是否有針對資料中心應用的替代方案？我想追問的是，如果你們也聚焦在這一塊，是否有機會同樣提升毛利率。

Yes. We have a whole portfolio of 100G products that will be coming to market between now and the end of next year, really focused on, what you say, really different requirements that the data centers have over the typical telecom customer of ours. And the technology ranges from our in-house indium phosphide technology and VCSEL technology to silicon photonics.

是的。我們有一整套 100G 產品組合，將在現在到明年年底之間陸續上市，重點聚焦於你所說的：資料中心相較於我們典型電信客戶所具有的不同需求。相關技術涵蓋我們自有的磷化銦（InP）技術與 VCSEL 技術，以及矽光子（silicon photonics）。

Based on the requirements of the given customers, the different technologies and applications to meet the price point and reliability differences between the different customers really drives where we put our R&D dollars. Chris, do you want to add to that?

依不同客戶的需求，採用不同技術與應用，以符合不同客戶在目標價格與可靠度上的差異，這些因素確實會驅動我們研發資金的配置。Chris，你要補充嗎？

No, I think that's very clear.

不，我覺得已經很清楚了。

Okay. Thank you.

好的，謝謝。

Alex Henderson, Needham.

Alex Henderson，Needham。

You must feel great having your first quarter as a public company. Congratulations.

你們作為上市公司的第一季表現一定感覺很棒。恭喜。

Thanks, Alex. It does feel good.

謝謝，Alex。確實感覺很好。

My first question is really on this datacom piece because it seems like you've pared out some of the products that were going into that datacom 10-gig side of it, mainly because of the pressure in the short reach peace. Is that an accurate read, that you are essentially backing away from some of the VCSEL-based products that are short reach in nature with the 10 gig?

我的第一個問題主要在資料通訊這一塊，因為看起來你們已經剔除了一些原本用在 Datacom 10G 端的產品，主要是因為短距離部分的壓力。這樣的解讀正確嗎？也就是說，你們基本上正在淡出一些以 VCSEL 為基礎、屬於短距離性質的 10G 產品？

I wouldn't say we're backing away. I'd say that the competition is getting more fierce and therefore we're losing some share in some of the shorter reach applications.

我不會說我們在淡出。我會說競爭變得更激烈，因此我們在某些較短距離的應用上正在流失一些市占。

I would say, just for clarification, we have a 40-gig product that was very large volume that we weren't totally vertically integrated on. And therefore we had a less competitive product offering than some of the vertically integrated guys. That's why we're focused on solely vertical integration on all of our 100-gig products to be able to maintain that competitive nature and the margins we need going forward. So, I'd say it's a combination of both 40 gig that's really 10-gig based and 10 gig that is going to decline over time.

我想說，先澄清一下，我們有一款 40G 產品，出貨量非常大，但我們並沒有做到完全的垂直整合。因此，相較於一些已垂直整合的同業，我們的產品供應競爭力較弱。這也是為什麼我們專注於讓所有 100G 產品都做到完整垂直整合，以便在未來維持競爭力以及我們所需要的毛利率。所以我會說，這是兩者的組合：一方面是其實以 10G 為基礎的 40G，另一方面是 10G 會隨時間而下滑。

Could you help us get our arms around what portion of the datacom business is 10-gig, 40-gig, related that is exposed to that pressure and what portion is in indium phosphide-based, little longer reach, not under those types of the pressures, more tunable related, or alternatively 100-gig related?

你能否幫我們釐清一下，資料通訊（datacom）業務中有多少比例是 10G、40G 相關、因此暴露在那種壓力之下；又有多少比例是磷化銦（InP）為基礎、傳輸距離較長、沒有承受那類壓力、較偏可調式（tunable）相關，或是另外屬於 100G 相關？

I'd say that the hyperscale data centers guys have not made the conversion to 100 gig yet, and are mainly installing 40 gig, both short reach and more 2-kilometer reach type of applications. Those are the applications, frankly, that we are not as competitive as we need to be.

我會說，超大規模資料中心（hyperscale）的客戶目前還沒有轉換到 100G，主要仍在安裝 40G，包含短距離以及較偏 2 公里距離的應用。坦白說，這些應用正是我們目前競爭力還不夠強的部分。

On the 100 gig, I could see that by the middle of next calendar year, that transition starts in a meaningful way, away from 40 gig to 100 gig. And that could come in short reach 100 gig to 2 kilometer to 10 kilometer. Today, most of our 100-gig products are going not within the data center but more between data center or intercampus, and most of those are LR4s or, really, 10 kilometer and shorter applications that we have on our CFP4 and CFP2.

至於 100G，我可以預期到明年曆年年中左右，從 40G 轉向 100G 的轉換會以更有意義的方式開始。這可能會出現在短距離 100G、2 公里到 10 公里等範圍。今天，我們多數 100G 產品並不是用在資料中心內部，而是更多用在資料中心之間或園區間（intercampus）；其中多數是 LR4，或更精確地說，是 10 公里及更短距離的應用，對應我們的 CFP4 與 CFP2。

Just to wrap up the question around this, the current revenue rate of $35 million is predominantly in 10-gig related products or 40-gig related products, and not in longer reach or higher speed elements? Is that right?

為了把這個問題收斂一下，目前每季約 3,500 萬美元的營收水準，主要來自 10G 相關產品或 40G 相關產品，而不是來自更長距離或更高速的項目？是這樣嗎？

I wouldn't say that. We don't break down the speed of the datacom. But I would say that we have meaningful revenues today in 100-gig CFP2, CFP4. And we are starting production volume this quarter on our QSFP28, 2 kilometer and below application that we think is leading the market by months, if not quarters.

我不會這麼說。我們不會把資料通訊業務按速率拆分。不過我會說，我們目前在 100G 的 CFP2、CFP4 上已有相當可觀的營收。而且我們在本季開始對 QSFP28（2 公里及以下應用）進入量產出貨，我們認為這在市場上領先了好幾個月，甚至可能是好幾季。

All right. I'll cede the floor. I'm not sure I got to the heart of the issue. I'll leave it to somebody else to try. Thanks.

好，我就不再佔用時間了。我不確定我是否問到問題核心，我就留給其他人再試試看。謝謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

On the competition being fierce on the VCSEL side of the business, could you help me understand, is that coming from your traditional VCSEL competitors? Or is this more some of the newer entrants that have been emboldened by being able to buy some components and piece together solutions?

關於 VCSEL 這塊業務競爭非常激烈，你能幫我理解一下，這是來自你們傳統的 VCSEL 競爭對手？還是更多來自一些新進者，他們因為能買到部分元件、再把解決方案拼裝起來而更有底氣？

I'd say probably the driving force is more the new competitors that are popping up, whether they are buying components and making modules -- with lower costs or lower margin expectations or not, it's not clear to me. But I'd say mostly from the newer entrants.

我會說，驅動力可能更多來自於不斷冒出的新競爭者；不論他們是買元件來做模組——成本更低也好、或是毛利期待更低也好，我不太確定。但我會說主要是來自新進者。

All right. That's helpful. And then you gave us on the pump laser that that's the highest level of revenue since 2006. I was wondering if you could give us a similar statistic on your ROADM business. And then if we think about ROADM, you talked about China being an area that could potentially be a growth driver. You talked about the metro rollout in North America. I'm curious if you are surprised by the level of strength in the ROADM business ahead of some pretty material drivers on the horizon.

好，這很有幫助。接著你提到泵浦雷射（pump laser）營收是自 2006 年以來的最高水準。我想問你是否也能給我們一個類似的 ROADM 業務統計？另外談到 ROADM，你提到中國可能是潛在的成長驅動因素，也提到北美都會網（metro）建置。我好奇的是，在一些相當重大的驅動因素尚未完全發酵之前，ROADM 業務就已經這麼強勁，你是否感到意外？

Yes, I guess I was surprised a little bit in the demand on the ROADMs. And I think, as I made in comments in the script, I think it's due to the fact that we're gaining share and outperforming our competitors, and, therefore, our main customers are asking for more and more ROADMs from us that we're having to respond to.

是的，我想我對 ROADM 的需求確實有點意外。我認為——正如我在講稿評論中提到的——這是因為我們正在提升市佔、表現優於競爭對手，因此我們的主要客戶向我們要求越來越多的 ROADM，而我們必須回應這些需求。

As far as China is concerned, I was in China all last week and the customers there and the network providers are all talking about the need for deploying ROADMs, which they haven't done in the past, and I expect that to start rolling out within calendar 2016. As far as historic ROADM, do you have that, Chris? The peak was 2011 when the last of metric deployments were in full force.

至於中國，我上週整週都在中國，那邊的客戶與網路營運商都在談部署 ROADM 的需求——他們過去並沒有這麼做——我預期這會在 2016 曆年開始展開。至於歷史上的 ROADM 表現，Chris，你有資料嗎？高峰是在 2011 年，當時最後一波都會網部署正全力進行。

We're certainly not at that level at this point.

我們目前當然還沒到那個水準。

Yes. But keep in mind, we're still deploying first office applications for the North American metro deployments. I could easily see getting back to those 2011 type levels when the real metro deployments roll out in a meaningful way. Does that help?

是的。但請記住，我們目前仍在為北美都會網部署導入第一個局端（first office）應用。我完全可以想像，當真正的都會網部署以更有意義的方式展開時，我們會回到 2011 年那種水準。這樣有幫助嗎？

Yes. And then just one more, if I may, on the laser gross margin. I'm curious, is there any pricing pressure you're seeing on fiber from Amada that is keeping those margins relatively depressed compared to historical levels? Or is it coming from fab utilization or the other side of your business?

有。那我再問最後一個，關於雷射的毛利率。我好奇的是，你們是否看到來自 Amada 的光纖在價格上有任何壓力，使得毛利率相較於歷史水準仍偏低？還是這更多來自晶圓廠稼動率（fab utilization）或你們業務的其他部分？

We don't comment on customers, especially when they are pretty much our whole fiber laser business. But I will samesaythat we work very closely with all of our customers to make sure that their products are competitive against their competitors. So, I would say that at the tool level, there are aggressive price expectations that, working together with our customers, we respond to. And then we need to work together to drive our costs down to allow us to get our margins back up.

我們不評論客戶，尤其當他們幾乎占了我們整個光纖雷射業務。不過我會說，我們與所有客戶都非常密切合作，確保他們的產品在面對競爭對手時具備競爭力。所以我會說，在工具機（tool）層級，市場對價格有相當積極的期待，我們會與客戶協同來回應。接著我們也需要一起努力降低成本，讓我們的毛利率能回升。

I think that's what you saw in Q1, where prices went down faster than our costs have gone down. But we have plans in place to really improve upon our cost structure and drive that kind of improvement over time.

我想這就是你在第一季看到的情況：價格下滑的速度比我們成本下降的速度更快。但我們已經有計畫要大幅改善成本結構，並隨時間推動這類改善。

Great. Thank you for taking my questions and congrats on the first quarter out of the gate.

很好。謝謝你回答我的問題，也恭喜第一季開局表現。

Jorge Rivas, Craig-Hallum Capital.

Jorge Rivas，Craig-Hallum Capital。

Good afternoon. Thanks for taking my questions. I wanted to dig in a little more on the ROADM product line. I'm wondering if you guys can tell us about the mix between your TrueFlex and your legacy ROADM.

下午好。謝謝你回答我的問題。我想再更深入一點了解 ROADM 產品線。我想知道你們能否談談 TrueFlex 與傳統（legacy）ROADM 之間的組合占比。

Yes, we can. It's about 50%. And obviously the TrueFlex is growing and the legacy stuff is flat to down.

可以。大約各占 50%。很明顯 TrueFlex 正在成長，而傳統產品則是持平到下滑。

Right. Okay. And then, also your pump lasers, impressive quarter for those. Wondering what kind of gross margins those have. Are those above corporate average? Below corporate average? In line?

了解。那另外，你們的泵浦雷射這季表現很亮眼。我想問這類產品的毛利率大概如何？是高於公司平均、低於公司平均，還是大致相當？

Yes. We don't break out specific margins by product line. But I will say, in general, products that have high wafer content, as we grow that business, the variable margins are above our corporate average. So, you can imagine that, as we go to new levels of revenue for products that are heavy wafer content-based, which our telecom pumps are, that you would imagine that that growth in revenue has a very good variable margin.

是的。我們不會按產品線拆分揭露特定毛利率。不過我會說，一般而言，晶圓含量（wafer content）高的產品，隨著我們擴大該業務，其變動毛利率會高於公司平均。你可以想像，當我們在晶圓含量高的產品上達到新的營收水準——我們的電信泵浦雷射就是這類——那麼這樣的營收成長會帶來非常好的變動毛利率。

Okay. Excellent. And then one last question for me, it seems like with the headwinds on 10 gig and 40 gig is this affecting your -- (technical difficulty).

好，很好。那我最後一個問題，看起來 10G 和 40G 的逆風是否正在影響你們的——（技術問題）。

Joseph Wolf, Barclays.

Joseph Wolf，Barclays。

Thank you. I had a question about gross margin which was based on a combination of mix and some cost adjustments or reductions you've been able to achieve. If we think about calendar 2016 and the annual price adjustments, how confident are you in your ability to keep gross margin flat and even show some more improvement across calendar 2016?

謝謝。我有個關於毛利率的問題。毛利率提升是基於產品組合，以及你們能做到的一些成本調整或降低。如果我們看 2016 曆年，以及電信業務每年的價格調整，你們對於在 2016 年維持毛利率持平、甚至在全年進一步改善毛利率的能力，有多大信心？

Sorry, for some reason we got cut off, Jorge, so if you could repeat your question, that would be great.

抱歉，不知道為什麼我們剛剛斷線了，Jorge，如果你能重複一下你的問題就太好了。

It's Joseph Wolfe here. I think the caller before me may have gotten cut off. My question is on gross margin. It's gotten to a higher level and I guess you based it on both mix and cost reduction. If you look into calendar 2016 and think about mix and the annual price reductions in the telecom business, how confident are you in your ability to keep margins flat or to even improve them as you go through the year?

我是 Joseph Wolfe。我想我前一位來電者可能斷線了。我的問題是關於毛利率。毛利率已提升到較高水準，我想你們是基於產品組合與成本降低兩方面。如果你展望 2016 曆年，並考量產品組合以及電信業務每年的降價，你們對於維持毛利率持平、或在全年逐步改善毛利率的能力，有多大信心？

Yes. Let me give you my view and then Aaron can add to it. I'd say that gross margin, the variables that go into it are how new our product is. And I would say that with our TrueFlex ROADMs growing rapidly, and 100G datacom, those kinds of things typically have higher gross margins than some of the legacy products. So, I would expect that as the metro deployments in North America roll out and we get continued 100G modulators in China and lasers and tuner lasers and things like that, that overall gross margins should be able to be maintained, even though we're going to have the annual price negotiations that impact both Q2 as well as Q3. So, Aaron, do you want to --?

好的。我先說我的看法，然後 Aaron 可以補充。我會說，毛利率取決於幾個變數，其中之一是我們的產品有多新。我會說，隨著 TrueFlex ROADM 快速成長，以及 100G 資料通訊等業務擴大，這類產品的毛利率通常會高於一些傳統產品。因此，我預期隨著北美都會網部署展開，以及我們在中國持續出貨 100G 調變器、雷射、可調式雷射等，整體毛利率應該能夠維持，即便我們將面臨每年的價格談判，這會影響第二季以及第三季。Aaron，你要不要——？

Thanks, Alan. Just to talk about the competitive environment, it is competitive and pricing is always a challenge. We'll be heading into the early part of calendar 2016 going into price negotiations on the optical components side. But having said that, our teams internally -- engineering and operations -- have been doing a fabulous job with regards to focusing on reducing costs.

謝謝你，Alan。談到競爭環境，確實競爭激烈，而定價一直都是一項挑戰。我們將在2016曆年初期，進入光學元件端的價格談判。不過話說回來，我們內部團隊——工程與營運——在專注於降低成本方面做得非常出色。

I think on our last call we also articulated that we're looking at some of our manufacturing locations and we're consolidating where we can. So, we continue to focus on getting better synergies and efficiencies from a cost standpoint.

我想在上次電話會議中我們也提到，我們正在檢視部分製造據點，並在可行之處進行整併。因此，我們會持續從成本角度著重於取得更好的協同效應與效率。

In addition to that, we believe that, as we continue to drive more laser revenue, with higher gross margin, that'll continue to accrete our gross margins, as well. Over the last couple of quarters, the laser gross margin has been down a little bit. Some of that has been due to mix with our solid state lasers being down. In addition to that, we did have to reduce our fiber laser prices a bit in advance of cost reduction. So, we still feel very strongly we can accrete our gross margin go forward.

此外，我們相信，隨著我們持續推動更多雷射營收、且其毛利率較高，這也將持續帶動我們的整體毛利率提升。過去幾個季度，雷射的毛利率略有下滑，其中一部分是因為產品組合影響——我們的固態雷射占比下降。除此之外，我們也在成本降低尚未完全到位之前，先行小幅下調了光纖雷射的價格。因此，我們仍然非常有信心，未來毛利率可以持續提升。

Okay. Thank you. And then you mentioned book-to-bill below 1. I'm wondering if you can give us, as we think about the business going forward, how much of the business you've got visibility on and how we should think about that book-to-bill number with regards to both your guidance and to how long your bookings stay in some sort of backlog that we should be thinking about when we think about modeling out for a year.

好的，謝謝。接著你提到接單出貨比（book-to-bill）低於1。我想請教，當我們思考未來業務走向時，你們對業務的可視性大概有多少？以及我們應該如何看待這個接單出貨比數字——不論是相對於你們的財測指引，或是相對於訂單在某種積壓（backlog）中會停留多久——以便我們在做一年期模型時納入考量。

I think most of our major customers are on VMI so book-to-bill doesn't necessarily reflect demand. And while that sounds silly, it's true. As more of our business goes to more of our larger customers that are VMI, and as they take share from some of the smaller customers, we're going to see book-to-bills go down as our revenues go up. So, I wouldn't read too much into book-to-bill.

我認為我們大多數主要客戶都採用VMI（供應商管理庫存），因此接單出貨比不一定能反映需求。雖然聽起來有點奇怪，但確實如此。隨著我們更多業務轉向採VMI的較大型客戶，且他們從一些較小客戶手中取得更多份額，我們會看到接單出貨比下降、但營收上升。所以，我不會對接單出貨比解讀過多。

Okay. That's exactly what I was getting at. We don't want to read too much into the number you've just given. I think that's all I've got right now. Thank you.

好的，這正是我想問的重點。我們不想對你剛提供的數字過度解讀。我目前就這些問題。謝謝。

Jorge Rivas, Craig-Hallum.

Jorge Rivas，Craig-Hallum。

Thank you. My line got disconnected. I'm not sure why but I apologize for that. I just have one follow up on your web 2.0 business. Is it fair to say that that part of your business, it's being currently affected by the headwinds from 10 gig, on 10-gig lasers?

謝謝。我的線路斷線了，我不確定為什麼，但我為此致歉。我只有一個關於你們Web 2.0業務的追問。是否可以說，你們那部分業務目前正受到10G逆風的影響，特別是在10G雷射方面？

I would say that the headwinds on 10 gig are more in the enterprise side of the business as opposed to the web 2.0 guys. They've transitioned to 40 gig pretty much as the primary speed within a data center. So, I'd say that's more in the enterprise side where the 10 gig is still the predominant speed within the enterprises. Chris, do you have anything to add?

我會說，10G的逆風更多是在企業端業務，而不是Web 2.0客戶。他們在資料中心內基本上已經轉向以40G作為主要速率。所以我會說，影響更多在企業端，因為10G在企業內仍是主流速率。Chris，你有要補充的嗎？

No. I think that covers it. The data center business, at least for us, that's primarily 40 gig and now emerging 100 gig. 10 gig is very focused on enterprise -- not exclusively but primarily.

沒有。我想這已涵蓋了。資料中心業務，至少對我們而言，主要是40G，現在也開始出現100G。10G非常集中在企業端——不是完全只有企業端，但主要是。

Okay, great. All right. Thanks a lot, guys.

好的，很好。好吧，謝謝各位。

Tim Savageaux, Northland Capital.

Tim Savageaux，Northland Capital。

Hi, good afternoon, and congrats on a nice quarter and outlook. I have a question about the pump laser comments, as well, really a couple of different questions. Obviously 2006 was a while ago and if we subtract to zero that's the cycle that we were in then. But I wonder if you guys might be able to provide any historic perspective on what you saw then versus what you're seeing now from an overall industry standpoint, given that your seeing what you've termed as historic strength in your pump laser business. And I assume that's a driving the amplifier business, as well, but maybe I'll let you comment on that, too. And then I have a quick follow.

嗨，下午好，也恭喜本季表現與展望都不錯。我也有一個關於泵浦雷射（pump laser）評論的問題，其實是兩個不同的問題。顯然2006年已經是很久以前了，如果我們把它歸零，那就是當時所處的景氣循環。但我想請問，鑑於你們所稱泵浦雷射業務出現歷史性強勁表現，能否從整體產業角度提供一些歷史對照：當時你們看到的情況與現在看到的情況有何不同？我也假設這同時在帶動放大器（amplifier）業務，但也請你們一併評論。然後我還有一個簡短的追問。

Maybe, Chris, it may be good to go through pumps going to amps and why deployments of amps is a good leading indicator for the network.

也許，Chris，你可以說明一下泵浦如何進入放大器，以及為什麼放大器的部署是網路建設的一個良好領先指標。

I'd say first is that certainly industry structure has changed a bit in that there's, in some ways, effectively fewer suppliers as there's been some folks that have exited the pump laser business or become rather not so competitive any longer. Secondly, at the amplifier level -- pumps feed into amplifiers -- our amplifier business over the n number of years has come down a bit as we've had lower-cost competitors are able to make a living buying pumps from us and turning those into amplifiers. That has also driven the pump volumes up. But I highlight that we're talking about a number that's the better part of a decade. And with price erosion in this interesting you can imagine volumes are significantly higher today than they were in 2006.

我會先說，產業結構確實有些改變；某種程度上，供應商變少了，因為有些業者退出了泵浦雷射業務，或是不再那麼具有競爭力。第二，在放大器層級——泵浦供應給放大器——我們的放大器業務在過去若干年有所下滑，因為一些低成本競爭者能夠向我們購買泵浦，再把它們做成放大器並維持獲利。這也推升了泵浦的出貨量。不過我要強調，我們談的是接近十年的跨度。而在這段期間價格持續侵蝕，你可以想像，如今的出貨量相較2006年已顯著提高。

You seem to indicate that maybe the strength in that business was some sort of indicator about the rest of the sector. I don't want to overstate that. But if you feel like there are implications for where we are in the cycle for the rest of the telecom business, or what have you, I'd love you to expand on that.

你似乎暗示那項業務的強勁可能是整個產業其他部分的一種指標。我不想把它講得太誇張。但如果你認為這對我們判斷電信業務其他部分所處的循環位置或其他面向有任何含意，我很希望你能再多談一些。

Correct. Yes, at least historically, and it's fairly logical that some of this, whether it be amplifiers and, in some cases, ROADMs tend to lead transmission equipment going into telecom deployments as folks basically light up fiber and they need to deploy their amplifiers from day one. It's difficult to say, does that mean we're at the beginning or the top of the cycle. I would argue it's got to be probably the beginning, given that the last couple of years haven't been great in this space. But we certainly know we are not on the down slope of the cycle given the strength in that business.

沒錯。是的，至少從歷史上看，而且邏輯上也相當合理：某些設備——不論是放大器，或在某些情況下的ROADM——往往會領先於傳輸設備進入電信部署，因為業者基本上點亮光纖後，從第一天起就需要部署放大器。很難說這代表我們處於循環的起點還是頂部。我會主張，考量過去幾年這個領域表現並不理想，這應該更可能是循環的開始。但我們可以確定的是，基於該業務的強勁表現，我們肯定不在循環的下行階段。

Okay. Let's hope we're not at the top.

好的。希望我們不是在頂部。

I don't think we are.

我不認為是。

Let me follow up with just a quick geographic question. You didn't mention much there. You mentioned China from a ROADM perspective. I wonder about -- we're seeing some indications of China bouncing back for folks more broadly. And maybe that's covered under your 100-gig discrete commentary. But if you talk specifically about current demand in China and then also whether there's anything else of note from a geographic perspective in the quarter or outlook. Thanks.

我再追問一個很快的地理區域問題。你剛才提得不多。你從ROADM角度提到了中國。我想問——我們看到一些跡象顯示，中國對更廣泛的業者而言正在回溫。也許這已包含在你對100G分立元件的評論中。但如果你能更具體談談目前中國的需求，以及本季或展望在地理區域面向是否還有其他值得注意之處。謝謝。

Like I said, I was in China last week and the network operators are awarding bids, as we speak, for major deployments. So, I would say that I expect the China deployments to pick up over the next couple of quarters. And I think you've heard that from some of our competitors, as well. So, we're aligned with what they're saying.

如我所說，我上週在中國，網路營運商正在就重大部署進行標案授予。因此，我預期中國的部署會在接下來幾個季度回升。我想你也從我們一些競爭對手那裡聽到類似說法，所以我們與他們的看法一致。

I would say that the North America metro deployments, we are starting to see the early stages of that in last quarter as well as in this quarter with our ROADMs and super blades that are going into -- again, these are just field trials but they are big field trials -- we expect those to really go into meaningful deployments in the first half of calendar 2016. So, so we should see a step up in both the transport side of the business -- so, amplifiers and ROADMs and things like that -- as well as the transmission side -- modulators, tuneable lasers, and receivers, and things like that.

我會說，北美都會區（metro）部署方面，我們在上一季以及本季都開始看到早期階段的跡象，包含我們的ROADM與super blades導入——再次強調，這些仍是現場測試（field trials），但規模很大——我們預期它們會在2016曆年上半年真正進入具意義的部署。因此，我們應該會看到運輸（transport）端業務——也就是放大器、ROADM等——以及傳輸（transmission）端業務——如調變器、可調式雷射（tuneable lasers）、接收器等——都出現一個台階式的提升。

Europe is a little bit of a question mark for me. I really don't have the kind of visibility I have in both North America and China. But we are seeing okay demand anecdotally from our network equipment manufacturers. But, again, we don't see where all our equipment ends up.

歐洲對我來說有點不確定。我沒有像在北美與中國那樣的可視性。不過，我們從網路設備製造商那裡零星聽到的需求還可以。但同樣地，我們也看不到所有設備最後會部署到哪裡。

Okay. Thanks again.

好的，再次感謝。

James Kisner, Jefferies.

James Kisner，Jefferies。

Hi, this is Jason North for James. I was wondering, last quarter I believe you suggested that datacom would be flat in calendar 2016, and in the script today you said that, with the 100G QSFP28 would now more than offset declines. So, you're saying now that you think it's going to grow? And, if so, then what changed since the last earnings call?

嗨，我是Jason North，代James發問。我想請教，上季我記得你們曾表示資料通訊（datacom）在2016曆年將持平，而你們今天的講稿中提到，隨著100G QSFP28的推出，現在將足以抵消下滑。所以你們現在是說你們認為它會成長嗎？如果是，那麼相較上次財報電話會議，發生了什麼改變？

I don't recall having said that datacom would be down in 2016. What I do recall was saying that we expected it to be down in fiscal Q1. And I'd say that we are expecting it to be flattish in fiscal Q2, but that I would expect growth from our run rate or exit rate of the calendar year into calendar 2016 as the ASPs for 100 gig are significantly higher than a 10-gig product. And I think we're going to get lower 10-gig revenue, but higher growth than the reduction in the 100 gig. So, I would say 2016 will be an up year for Datacom.

我不記得我曾說過 Datacom 在 2016 年會下滑。我記得我說的是，我們預期它在會計年度第 1 季會下滑。而我會說，我們預期它在會計年度第 2 季會大致持平，但我預期從本曆年年底的 run rate 或 exit rate 進入曆年 2016 年會有成長，因為 100G 的 ASP 明顯高於 10G 產品。我認為我們的 10G 營收會較低，但 100G 的成長會高於 10G 的下滑幅度。所以，我會說 2016 年對 Datacom 會是成長的一年。

Okay. And on a different note here, looking at the M&A funnel, it's been a while since you bought anything on the commercial or traditional optics side. Are you active there? What kind of targets are you exploring at this point?

好的。換個話題，從併購（M&A）管線來看，你們在商用或傳統光學那一側已經有一段時間沒有收購了。你們在那邊有在積極進行嗎？目前在看哪些類型的標的？

This is Aaron. A good question. Again, part of our separation here is going to allow us the freedom and flexibility to be able to go and take advantage of different opportunities in the marketplace. We're going to be very aggressive in terms of what we look at and what we take on. But at the same time anything we go look at has to make financial sense, it's got to be good for their shareholders from an accretion standpoint. And although we haven't publicly released our balance sheet at this point in time, our balance sheet is in good shape. And you folks will see that when we release our 10-Q with the SEC.

我是 Aaron。問得很好。同樣地，我們這次的分拆將讓我們有自由度與彈性，能夠去把握市場上的不同機會。我們會非常積極地看各種可能性以及我們要承接的項目。但同時，我們去看的任何案子都必須在財務上合理，從增益（accretion）的角度也必須對他們的股東有利。雖然我們目前還沒有公開發布資產負債表，但我們的資產負債表狀況良好。等我們向 SEC 提交並發布 10-Q 時，各位就會看到。

Okay. Great. Thank you very much.

好的。非常好。非常感謝。

Dave King, B. Riley.

Dave King，B. Riley。

Thank you. Good afternoon. The first question is, you usually talk about 100 G modulators. Just wondering how they did in first quarter.

謝謝。下午好。第一個問題是，你們通常會談到 100G 調變器。想請問第一季表現如何？

I want to say they were flattish but we expect that this quarter they will be up due to the things we talked about before, which primarily is the China deployment at China Mobile.

我想說大致持平，但我們預期本季會上升，原因是我們先前談到的那些事情，主要是中國移動在中國的部署。

Got it, okay. And then regarding your ROADM business, already several questions, just wondering you talked about maybe getting back to 2011 peak. I believe that was over $50 million on a quarterly basis. Are we talking maybe doubling from here? Your run rate is about, what? -- 25-ish something like that?

了解，好的。接著關於你們的 ROADM 業務，已經有好幾個問題了，我想問你們提到可能回到 2011 年的高峰。我相信那時單季超過 5,000 萬美元。我們是在說可能從現在翻倍嗎？你們目前的 run rate 大概是，多少？—大約 2,500 萬左右之類的？

We haven't said but I believe we're more than halfway there.

我們沒有明說，但我相信我們已經超過一半了。

More than half. Got it. Okay. And then on the laser side, you expect that to be flat to down a little bit. Is that more of a -- I missed your commentary -- but is it more related to macro headwinds? I think some of your competitors are also talking about some macro related issues.

超過一半。了解。好的。那在雷射方面，你們預期會持平到小幅下滑。這比較是—我可能漏聽了你的說明—但這是否比較與總體環境逆風有關？我想你們的一些競爭對手也在談一些與總體相關的問題。

I think part of that is what's going on in the macro environment. Solid state lasers are down. Semi cap tool manufacturers are not selling as much into fabs today. Those things have been a little bit slower. There's a tiny bit of inventory digestion occurring, as well.

我認為其中一部分是總體環境正在發生的事情。固態雷射在下滑。半導體資本設備（semi cap）工具製造商目前對晶圓廠（fabs）的銷售沒有那麼多。這些事情都稍微慢了一點。另外也有一點點庫存去化正在發生。

Is it fair to assume maybe your fiber laser will be up but then other laser business will be down, so net-net it will be flat to down a little bit? Is that a fair assumption? Or fiber laser will be down, as well?

是否可以合理假設，你們的光纖雷射會成長，但其他雷射業務會下滑，所以整體來看會持平到小幅下滑？這樣的假設合理嗎？還是光纖雷射也會下滑？

If it's down, it's not down materially. This is a quarter where typically our solid-state lasers dips down because the semiconductor capital equipment spend in the December quarter is usually not very strong. That said, as I said in my prepared comments, our ultra-fast laser business is doing very well with design-ins. Hasn't turned into huge volume shipments up until last quarter, but I expect that will contribute significantly in our calendar 2016 results.

如果下滑，也不會是顯著下滑。這一季通常我們的固態雷射會下探，因為 12 月季度的半導體資本設備支出通常不會很強。話雖如此，正如我在事先準備的評論中所說，我們的超快雷射業務在 design-in 方面表現非常好。直到上一季之前都還沒有轉化成大量出貨，但我預期這會在我們曆年 2016 年的業績中做出顯著貢獻。

Got it. And then are you still trying to introduce turnkey lasers? I think that's what you guys talked about at Photonics West earlier this year. What's the status on that?

了解。那你們還在嘗試推出交鑰匙（turnkey）雷射嗎？我記得你們今年稍早在 Photonics West 有談到。現在進度如何？

We are. We're talking to other customers outside of our main customer. But again, as I said previously, those kinds of design wins take quarters, if not a year, so I wouldn't expect to see any really meaningful revenue until the end of this fiscal year or early next year.

有的。我們正在和主要客戶以外的其他客戶洽談。但同樣地，如我先前所說，這類 design win 需要好幾季、甚至一年，所以我不預期在本會計年度末或明年初之前會看到任何真正有意義的營收。

So, FY17 most likely. Okay. And then, Aaron, what was CapEx for the quarter?

所以很可能是 FY17。好的。那 Aaron，本季的資本支出（CapEx）是多少？

The CapEx spend was about $12 million for the quarter.

本季的 CapEx 支出大約是 1,200 萬美元。

Okay. And should we expect that to be flattish or maybe go down a little bit?

好的。那我們應該預期它大致持平，還是可能小幅下降？

In terms of modeling near term, flattish. As you model it, you could look at somewhere in the 5% of sales range in terms of CapEx, 5% to 6%. And then depending upon the programs we've got looking forward, there could be a little bit of lumpiness.

就短期建模而言，大致持平。你在建模時，可以用 CapEx 約占銷售額 5% 左右的區間來看，大約 5% 到 6%。然後依據我們未來要推進的專案，可能會有一些不均勻（lumpiness）。

Right. And then, lastly, regarding your 10% customers, are they the same as the ones in FY14?

了解。最後，關於你們的 10% 客戶，他們是否和 FY14 的那些相同？

We can't really disclose specific customer names but you can look at our 10-K and that will give you an idea of who they are and where they're located.

我們無法披露特定客戶名稱，但你可以查看我們的 10-K，裡面會讓你大致了解他們是誰以及他們位於哪裡。

All right. Fair enough. Thank you.

好，合理。謝謝。

Rod Hall, JPMorgan.

Rod Hall，JPMorgan。

Yes. Thanks for the question, guys. I just wanted to follow up on the metro commentary. My main question is, since the last earnings call you talked about the North American metro builds ramping up in the first part of the year, as well. Although it sounded like, if I'm interpreting your tone right, your visibility feels a little bit better here. And I just wonder if you can comment a little bit on visibility for production rollout. Do you feel like the information you've gotten in the last quarter has caused you to think that may happen a little bit earlier next year?

是的。謝謝提問，各位。我想跟進一下你們對都會網（metro）的評論。我的主要問題是，自從上次財報電話會議以來，你們談到北美的都會網建設在年初也會加速。雖然聽起來—如果我對你們語氣的解讀沒錯—你們現在的能見度似乎好一些。我想請你們談談量產導入（production rollout）的能見度。你們是否覺得過去一季拿到的資訊讓你們認為明年可能會更早發生？

And then I also wanted just to get you to comment again on long-haul DCI networking and where we stand with that, how deployments are going, and whether do you think that might be a meaningful driver of revenue next year. And then, lastly, on 100 gig in the data center, could you guys comment on whether you've seen any kind of an onboard effect ahead of 100 gig? Do you think people have slowed down on spending on 40-gig networking this year in anticipation of 100 gig? Or do you think they just keep right on rolling with 40? Sorry for all the questions but thanks a lot.

另外我也想請你們再評論一下長途（long-haul）DCI 網路以及我們目前的狀況、部署進展如何，以及你們是否認為它可能成為明年營收的重要驅動因素。最後，關於資料中心的 100G，你們能否評論是否看到任何在 100G 之前的「onboard effect」？你們覺得今年大家是否因為預期 100G 而放慢了 40G 網路的支出？還是你們覺得他們仍持續推進 40G？抱歉問題有點多，但非常感謝。

Sure. Chris, do you want to start with the 100 gig and the data center first and I'll take the metro.

當然。Chris，你要不要先從 100G 與資料中心開始，我來回答 metro。

Yes. I think it's difficult to say whether there's actual slowdown due to the 100 gig coming -- slow down at 40 gig. We certainly believe there is a little bit of softness in data center purchasing of transceivers here. I think that's publicly known and cloud providers have talked about that. But difficult to say whether that's due to waiting for 100 gig to come. I doubt it, given the tone that they tell us, which is they can't add it fast enough. But, yes, they are slowing down a little bit.

好的。我認為很難說是否真的因為 100G 即將到來而導致 40G 放緩。我們確實認為資料中心在收發器（transceivers）採購上有一點點疲軟。我想這是公開資訊，雲端服務供應商也談過。但很難說是否因為在等 100G。我不太相信，因為他們跟我們說的語氣是，他們怎麼加都加不夠快。不過，是的，他們確實稍微放慢了一點。

And as far as the metro visibility, absolutely I feel a lot more comfortable with the visibility I'm getting. It's the similar products that we're going into the main North American metro provider or metro carrier. But they're also going into other smaller network and carriers that is adding to our demand, on top of the fact that I think we're gaining share dramatically because our product works better. I think it's a combination of all of the above that actually may drive our CapEx a little bit higher in the short term to respond to that kind of demand. And I think it'll be a multi-your kind of deployment that is pretty exciting.

至於 metro 的能見度，絕對是的，我對目前拿到的能見度感覺舒服得多。這些是我們要導入北美主要 metro 供應商或 metro 電信商的類似產品。但它們也會導入其他較小的網路與電信商，這在既有基礎上增加了我們的需求。再加上我認為我們因為產品效果更好而大幅提升市占。我認為以上因素的組合，實際上可能會在短期內推升我們的 CapEx，以回應這類需求。我也認為這會是一個多年期（multi-year）的部署，非常令人振奮。

Your last question on long-haul and DCI, when we sell a modulator or tuneable laser, it's not clear exactly where it ends up going, but a lot of them are going into data center interconnects. And I know, as we listen to our customers, they are very focused on that business because it is driving a lot of volume. So, today all of that's being done with discrete components moving to CFP2-ACO. And I think we will be well-positioned when that market comes to fruition. Chris, do you have anything to add on that?

你最後一個關於長途與 DCI 的問題，當我們賣出調變器或可調式雷射（tuneable laser）時，並不清楚它最後會用在哪裡，但其中很多會用在資料中心互連（data center interconnects）。而且我知道，從我們聽客戶的說法，他們非常聚焦在這塊業務，因為它帶動了大量出貨量。所以目前這些多是用離散元件（discrete components）來做，並正往 CFP2-ACO 發展。我認為當這個市場成熟時，我們會處於有利位置。Chris，你要補充嗎？

I think that, as you highlighted, we don't have a lot of visibility into which components are going where. They're largely the same long-haul systems that would be deployed outside of data center interconnects.

我認為如你所指出的，我們對於哪些元件流向哪裡並沒有太多能見度。它們大多是相同的長途系統，只是會部署在資料中心互連之外的地方。

Okay. Thank you.

好的。謝謝。

Doug Clark, Goldman Sachs.

Doug Clark，高盛。

Great. Thanks for taking my question. I think we've covered a lot of ground so maybe two things to revisit from earlier comments. The first was, you talked a little bit about your product pipeline, a little bit for next year, and you actually included silicon photonics. So, I was wondering exactly what applications and what technologies you were planning on addressing with that, if you could talk a little bit about it.

很好。謝謝你回答我的問題。我想我們已經涵蓋了很多內容，所以我想回到先前評論中的兩點再請教。第一點是，你稍微談到你們的產品管線，包含明年的一些規劃，而且你們其實也提到了矽光子。因此我想請問，你們打算用它來切入哪些應用與哪些技術？如果可以的話，能否稍微談一下。

We haven't said specifically publicly what we're doing with silicon photonics, but I'd say that it's focused on, within data center, 100-gig applications, and primarily focused around when servers go to 25 gig. So, I think we are well positioned. We have been sampling our key customers with this product that I think, to one of the earlier questions, does change the game from what carriers are looking for versus what the hyperscale guys are looking for. So, it's within a data center, 500 meters to 2 kilometer kind of reaches that I think is the sweet spot and where we are focused on for our first silicon photonics product.

我們尚未在公開場合具體說明我們在矽光子方面做什麼，但我會說它的重點是在資料中心內的 100G 應用，主要聚焦在伺服器升級到 25G 的時點。所以我認為我們的布局很到位。我們已經用這項產品向我們的關鍵客戶送樣；我想呼應先前其中一個問題，這確實改變了市場格局，因為電信營運商在尋找的東西，與超大規模（hyperscale）業者在尋找的東西並不相同。因此它是在資料中心內、約 500 公尺到 2 公里這種傳輸距離，我認為這是甜蜜點，也是我們第一款矽光子產品的聚焦方向。

Okay. Perfect. Thanks for that detail. And then the other one was a follow-up to the M&A commentary. Wondering if, just as you look at potential targets -- and I understand accretion is the key goal here -- but if it's a combination of, within the optical coms segment, lasers, which focus you would look to expand further first.

好的。非常好。謝謝你提供這些細節。第二點是關於併購（M&A）評論的追問。我想請問，當你們評估潛在標的時——我理解增厚（accretion）是這裡的關鍵目標——但如果是在光通訊（optical coms）領域的組合，例如雷射等，你們會優先擴張哪一個面向？

Maybe I can talk about the one that we have done about a year and a half ago which was time bandwidth products in Zurich. It's the ultra-fast laser company that we've pulled into Lumentum now and it's a really a huge success for us. I'm really excited about the team and combining a great technology and great team with the infrastructure and go to market that we've got. So, I wouldn't rule out things like that in the future.

也許我可以談談我們大約一年半前做的一筆交易，也就是在蘇黎世的 time bandwidth products。那是一家超高速雷射公司，我們現在已經把它納入 Lumentum，對我們來說非常成功。我對這個團隊非常興奮，能把很棒的技術與很棒的團隊，結合我們既有的基礎設施與市場推進（go-to-market）能力。所以，未來我不會排除再做類似的事情。

But at this point, I'm not sure we can talk too much about whether or not we're going to focus our M&A dollars and focus on optical coms or datacom or telecom or lasers. We are looking at all of them and when we have something to talk about, we'll let you know.

但就目前而言，我不確定我們能否談太多，關於我們是否會把併購資金聚焦在光通訊、資料通訊（datacom）、電信（telecom）或雷射。我們都在看；等到有可以對外說明的內容時，我們會讓大家知道。

Great. Well, thanks for taking my questions.

很好。謝謝你回答我的問題。

James Faucette, Morgan Stanley.

James Faucette，摩根士丹利。

Hi. This is Nita Marshall for James. A quick question on the OpEx. With it coming in better than your 5% to 8% guide so early into the split, was that due to attrition, or are there positions that are outstanding? I'm just trying to get at whether there are things that could prevent you from -- could there be a pause in operating margin improvement as you get to your double-digit target? Thank you.

嗨。我是 Nita Marshall，代 James 提問。關於營業費用（OpEx）有個簡短問題：在分拆後這麼早的階段，OpEx 表現就優於你們原先 5% 到 8% 的指引，這是因為人員流失（attrition），還是有一些職缺尚未補齊？我想了解的是，當你們朝兩位數的目標前進時，是否可能出現一些因素，導致營業利益率改善暫停？謝謝。

Hi, Nita. This is Aaron. In terms of our guide you see the operating margin guide. Alan alluded a little bit to the spend rate being flattish. In Q1 we did separate from Viavi, five weeks into the quarter. We did have some lower expenses in the area of engineering, primarily due to the timing of expenses and things of that nature.

嗨，Nita。我是 Aaron。就你看到的營業利益率指引而言，Alan 也稍微提到支出率大致持平。第一季我們從 Viavi 分拆，是在該季進行到第五週時完成。我們在工程方面確實有一些較低的費用，主要是因為費用認列時點等因素。

As we go forward, like we had mentioned, the SG&A model we're not going to have to add a lot of SG&A costs as we go forward. So, as volume increases we're going to see that fall to the operating margin line. We will be aggressive and continue to focus on development of new products, so we are going to spend money in R&D. And that's how we're going to continuously accrete our gross margin with these newer products.

往後看，如同我們提到的，我們的 SG&A 模型不需要在未來大幅增加 SG&A 成本。因此，隨著出貨量增加，我們會看到這些效益反映到營業利益率上。我們會積極並持續聚焦新產品開發，所以我們會在研發（R&D）上投入資金。而這就是我們透過這些較新的產品，持續增厚我們毛利率的方式。

Having said that, we do have a tiny bit of headwinds because we do have some merit increases here near term. And then as we get into next quarter, the March quarter, we do have payroll tax reset and some of those types of things that happen.

話雖如此，我們確實會面臨一點點逆風，因為短期內會有一些績效調薪（merit increases）。另外，進入下一季，也就是 3 月季度時，我們會遇到薪資稅重置（payroll tax reset）以及一些類似會發生的項目。

Okay. Great. Thanks.

好的。很好。謝謝。

Michael Genovese, MKM Partners.

Michael Genovese，MKM Partners。

Thanks a lot. It was great to see the North American metro build reflected in your sequential ROADM numbers. My question is, do you expect that this will pull through your transmission components in future quarters? Are you expecting that to happen? Do you have the right technology form factors for the transmission side of the equation that the Ciena and Ciscos are looking for, for the AT&Ts and Verizons of the world?

非常感謝。很高興看到北美都會區建設在你們 ROADM 的季對季數字中有所反映。我的問題是，你們是否預期這會在未來幾季帶動你們的傳輸元件（transmission components）？你們是否預期會發生？在傳輸端的需求上，你們是否具備 Ciena 和 Cisco 這些廠商、為 AT&T 和 Verizon 這類客戶所尋找的合適技術與外形規格（form factors）？

Yes. We are a very large player in the discrete components. 100-gig modulators are expected to increase this quarter. Tuneable lasers, the same. So, I'd say, at least for the foreseeable future, we're doing quite well and we expect those transmission products to follow the transport products.

是的。我們在分立元件（discrete components）方面是非常大的供應商。100G 調變器預期本季會增加；可調式雷射（tuneable lasers）也是如此。所以我會說，至少在可預見的未來，我們表現相當不錯，而且我們預期這些傳輸產品會跟隨傳送（transport）產品的成長。

That said, there's a lot of focus on CFP2-ACO and we do believe that, with our unique technology approach, while we might be behind in sampling customers compared to what some others are saying, I would say that our technology approach will get us the kind of manufacturability and cost structure to rapidly take advantage of that market, as well.

話雖如此，市場對 CFP2-ACO 的關注度很高；我們也相信，憑藉我們獨特的技術路徑，雖然相較於一些同業所說的進度，我們在客戶送樣上可能稍微落後，但我會說，我們的技術路徑將帶來可製造性與成本結構，讓我們也能快速把握那個市場機會。

And then, secondly, I wanted to reconcile some of the comments about book to bill and VMI with some of other comments about allocation. Do ROADMs ever go into VMI? Would ROADMs be in VMI? And if so, how does that reconcile with when they get onto allocation?

第二個問題，我想把你們對 book-to-bill 和 VMI 的一些評論，與你們對配給（allocation）的其他評論做個對照。ROADM 會不會進入 VMI？ROADM 會在 VMI 裡嗎？如果會，那它們進入配給時又要如何對應？

Our largest customers have all of their products go on VMI, regardless of allocation or not. We love our customers and we do what they ask us to do, and make sure we treat them fairly so they don't miss opportunities. We're increasing our capacity on our ROADMs and our super transport blades, which is the primary product that goes into the North American metro deployments. And those are all going through VMI. So, as those grow, you're not going to see an increase in book to bill.

我們最大的客戶，不論是否處於配給狀態，他們所有產品都會走 VMI。我們很重視客戶，也會照他們的要求去做，並確保公平對待，讓他們不會錯失機會。我們正在提升 ROADM 與我們的 super transport blades 的產能；後者是北美都會區部署的主要產品。而這些都透過 VMI 進行。因此，隨著它們成長，你不會看到 book-to-bill 上升。

Got it. And then, finally, if you could just speculate two years out from now -- that comment you made was interesting, about China wanting to deploy ROADMs for the first time. What could you imagine a couple years from now China being as a percentage of overall ROADM sales?

了解。最後，如果你可以推測兩年後——你剛才提到中國可能首次想部署 ROADM，那個評論很有意思。你能想像兩年後，中國在整體 ROADM 銷售中可能占比多少嗎？

Higher than it is today, which is zero. I think that the number of nodes in China, I could imagine over time equating to what we're talking about with the major North America metro buildout. I think we will have to have a new generation of ROADM to be able to meet the market demand in two years. And we're working feverishly on driving continued cost reduction and performance improvements of our ROADM products that should allow us to continue to grow in 2017 and beyond.

會比今天高；今天是零。我認為中國的節點數量，隨著時間推進，有可能達到我們所談到的北美主要都會區建設的規模。我想兩年後我們必須推出新一代 ROADM，才能滿足市場需求。我們也正全力以赴，持續推動 ROADM 產品的成本下降與效能提升，這應能讓我們在 2017 年及之後持續成長。

Great. Congratulations on the solid quarter. And thanks for the questions.

很好。恭喜本季表現穩健。也謝謝回答問題。

Thank you. I'm showing no further questions at this time. I would like to turn the conference back over to Mr. Alan Lowe for any closing remarks.

謝謝。目前我這邊顯示沒有其他問題。我想把電話會議交回給 Alan Lowe 先生，請他做結語。

Great. Thank you, Tamara. Momentum delivered on our first quarter as a public company. Our new products such as our TrueFlex ROADMs, 100G datacom transceivers and new commercial lasers are winning in the market. Our team is really excited to support our customers, grow our business and create shareholder value. We will be discussing our business at several investor relations events in the upcoming weeks. These events are listed on our supplementary slides provides on our website. And as we add new events they will also be listed on the website in the Investor Relations section. This concludes our call for today. We'd like to thank everyone for attending. And we look forward to talking with you again in another three months.

很好。謝謝你，Tamara。我們作為上市公司第一季就展現了強勁動能。我們的新產品，例如 TrueFlex ROADM、100G 資料通訊收發器，以及新的商用雷射，正在市場上取得勝利。我們的團隊非常期待能支援客戶、擴大業務並為股東創造價值。未來幾週我們將在多場投資人關係活動中討論我們的業務。這些活動列在我們網站上提供的補充投影片中；而當我們新增活動時，也會在網站的投資人關係（Investor Relations）區域列出。今天的電話會議到此結束。感謝各位與會。我們期待三個月後再與各位交流。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program. You may all disconnect. Everyone have a great day.

各位女士、先生，感謝參與今天的會議。今天的議程到此結束。各位可以掛線。祝各位今天愉快。