Lumentum Holdings Inc. (LITE) 2016 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Lumentum conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, this conference is being recorded.

各位女士、各位先生，大家好，歡迎參加 Lumentum 電話會議。此時，所有與會者將以僅收聽模式參與。稍後我們將進行問答環節，屆時將提供相關指示。（接線員指示）。提醒各位，本次會議正在錄音。

I would now like to introduce your host for today's conference, Mr. Chris Coldren, Vice President, Strategy and Corporate Development. Mr. Coldren, you may begin.

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。Coldren 先生，您可以開始了。

Thank you, Daria. Welcome to Lumentum's third-quarter fiscal 2016 earnings call. This 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.

謝謝你，Daria。歡迎參加 Lumentum 2016 會計年度第三季財報電話會議。我是策略與企業發展副總裁 Chris Coldren。今天與我一同參與電話會議的有：總裁兼執行長 Alan Lowe，以及財務長 Aaron Tachibana。

This call will include forward-looking statements, including statements regarding Lumentum's expected financial performance, expenses, trends and position in our markets, as well as 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. We encourage you to review our most recent filings with the SEC, particularly the risk factors described in our 10-Q filing for fiscal second-quarter ended December 26, 2015.

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、費用、趨勢及我們在市場中的地位，以及與客戶與產品相關之預期等陳述。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預期出現重大差異。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，特別是截至 2015 年 12 月 26 日止之 2016 會計年度第二季 10-Q 申報文件中所述的風險因素。

The forward-looking statements 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。

Please also note, unless it is 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. Our press release with the third-quarter fiscal 2016 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.

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依 GAAP 編製之財務資訊的替代或優於 GAAP 財務資訊。我們已在網站 www.Lumentum.com 的「投資人」專區提供 2016 會計年度第三季業績新聞稿，其中包含關於我們非 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。

Our website also has related 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 7:30 p.m. Pacific Time this evening on our website.

我們的網站亦提供相關的 SEC 申報文件（建議您查閱），以及與今日財報發布相關的補充投影片。最後，今日電話會議的錄音將於今晚太平洋時間 7:30 前在我們的網站上提供。

Now I would like to turn the call over to Alan for his comments and third-quarter business highlights.

現在我想把電話會議交給 Alan，請他發表評論並分享第三季業務重點。

Thank you, Chris. Demand is strong and increasing. Network and data center operators around the world continue to upgrade and expand their networks. They plan even larger investments in optical infrastructure over the coming years.

謝謝你，Chris。需求強勁且持續增加。全球的網路與資料中心營運商持續升級並擴充其網路。他們計畫在未來幾年對光學基礎設施進行更大規模的投資。

The rapid growth in cloud computing, video streaming, mobile and other high-bandwidth applications is placing enormous demands on networks in terms of capacity, connectivity, and efficiency. These demands can only be met with advanced optical communication technologies, including 100G and higher data transmission, and advanced ROADM architectures. Lumentum is a leader in these enabling technologies, and our investments in new products position us well for these trends.

雲端運算、影音串流、行動通訊及其他高頻寬應用的快速成長，對網路在容量、連接性與效率方面帶來極大的需求。這些需求只能透過先進的光通訊技術來滿足，包括 100G 及更高速率的資料傳輸，以及先進的 ROADM 架構。Lumentum 是這些關鍵技術的領導者，而我們在新產品上的投資使我們能夠很好地掌握這些趨勢。

Increasingly, network and data center operators around the world are critically dependent upon our products. Demand from China is strong now, and expected to increase. North American metro deployments are poised to ramp as our customers begin to transition from field trials to full-scale deployment. Hyperscale data center operators continue to plan major 100G upgrades, and we expect rollouts to begin in the second half of the calendar year.

全球的網路與資料中心營運商正日益高度依賴我們的產品。目前來自中國的需求強勁，且預期將進一步增加。隨著客戶開始從現場測試轉向全面部署，北美都會網路部署已蓄勢待發，準備加速推進。超大規模資料中心營運商持續規劃重大 100G 升級，我們預期相關導入將於曆年下半年開始。

Despite investing in additional manufacturing capacity, we continue to have challenges in meeting some of our customers' increasing demand. In the third quarter, we executed to plan. Revenue was $230.4 million, and fully diluted earnings-per-share was $0.32, both above the midpoint of guidance and at record levels.

儘管我們投資擴充製造產能，對於滿足部分客戶日益增加的需求，我們仍面臨挑戰。在第三季，我們依計畫執行。營收為 2.304 億美元，完全稀釋每股盈餘為 0.32 美元，兩者皆高於財測中位數，並創下歷史新高。

While recent company growth has been driven by our Telecom business, our Datacom business became a major driver of growth in the third quarter. Datacom revenue grew 30% sequentially and achieved record levels of $45.5 million. Datacom growth was driven by revenue from 100G products, which increased approximately 140% over the prior-quarter, and now represents over 40% of our total Datacom business. We expect our Datacom revenue will continue to grow in the coming quarters as 100G network upgrades continue and hyperscale data centers transition to 100G.

雖然公司近期成長主要由電信（Telecom）業務帶動，但在第三季，我們的資料通訊（Datacom）業務成為主要成長動能。Datacom 營收季增 30%，並創下 4,550 萬美元的歷史新高。Datacom 的成長主要由 100G 產品營收帶動，較前一季增加約 140%，目前已占我們 Datacom 總業務的 40% 以上。隨著 100G 網路升級持續推進，以及超大規模資料中心轉向 100G，我們預期 Datacom 營收在未來幾季將持續成長。

Telecom revenue was up 2% quarter-on-quarter. Increased demand more than offset typical third-quarter seasonal declines driven by price reductions. Third-quarter optical communication ASP erosion, which is typically about 3 percentage points higher than the other quarters, was just below 6%.

Telecom 營收較上一季成長 2%。需求增加不僅抵消了第三季因降價所導致的典型季節性下滑。第三季光通訊產品 ASP 下滑幅度（通常比其他季度高約 3 個百分點）略低於 6%。

Our TrueFlex ROADMs revenue grew approximately 30% quarter-on-quarter. These ROADMs are not only the basis of the North American metro builds that are about to start, but are finding broad traction across our customer base. This is due to network operators around the world shifting to more advanced network architectures that rely on the functionality of our TrueFlex products.

我們 TrueFlex ROADM 的營收較上一季成長約 30%。這些 ROADM 不僅是即將啟動的北美都會網路建設的基礎，也在我們的客戶群中獲得廣泛採用。這是因為全球網路營運商正轉向更先進的網路架構，而該架構仰賴我們 TrueFlex 產品的功能。

Total ROADM revenue grew approximately 4%, as TrueFlex growth was partially offset by a decline in revenue from older non-TrueFlex products. We expect ROADM growth to accelerate as non-TrueFlex ROADMs become less meaningful and TrueFlex continues to remain strong. ROADM growth for the next several quarters or years will be due to the broad base of customer demand and will accelerate when the metro deployments in North America move from field trials to larger full-scale network upgrades.

整體 ROADM 營收成長約 4%，因 TrueFlex 的成長部分被較舊的非 TrueFlex 產品營收下滑所抵消。我們預期隨著非 TrueFlex ROADM 的重要性降低且 TrueFlex 持續強勁，ROADM 成長將加速。未來幾季或幾年 ROADM 的成長將來自廣泛的客戶需求基礎；當北美都會網路部署從現場測試轉向更大規模的全面網路升級時，成長將進一步加速。

Adding to this, we expect China will begin significant ROADM deployment in the next calendar year when they ramp up the use of ROADMs in their metro networks. Currently, several Chinese carriers are evaluating ROADMs, and during this calendar year, will deploy a modest number of ROADMs.

此外，我們預期中國將在下一個曆年開始進行顯著的 ROADM 部署，屆時他們將在都會網路中加速採用 ROADM。目前，數家中國電信業者正在評估 ROADM，並將在本曆年部署少量 ROADM。

Commercial lasers was up slightly. We saw increased demand for our solid-state lasers, which was offset slightly -- by slightly lower fiber lasers. As highlighted in our last call, our customer demand for our kilowatt fiber laser remains strong, but we had challenges meeting this demand for one of our products. We continue to make progress improving output, and expect our overall fourth-quarter laser revenue to increase again.

商用雷射（Commercial lasers）營收小幅上升。我們看到固態雷射需求增加，但被光纖雷射略為下滑所稍微抵消。如同我們上次電話會議所強調的，我們客戶對千瓦級光纖雷射的需求仍然強勁，但在其中一項產品上我們在滿足需求方面遇到挑戰。我們持續在提升產出方面取得進展，並預期第四季整體雷射營收將再次增加。

Book-to-bill for optical communications and lasers were both above 1. We saw strong bookings in the third quarter, and that strength has continued into this quarter.

光通訊與雷射的接單出貨比（book-to-bill）皆高於 1。第三季我們看到強勁的訂單，而這股強勢也延續到本季。

This is a very exciting time for us, as demand continues to grow for bandwidth and speed across the world's data centers and the communication networks that connect them. We are strongly positioned with our products, our technology roadmap, our customer relationships and design wins, and our team's ability to execute.

對我們而言，這是一個非常令人振奮的時刻，因為全球各地資料中心以及連接它們的通訊網路，對頻寬與速度的需求持續成長。憑藉我們的產品、技術藍圖、客戶關係與設計導入成果，以及團隊的執行能力，我們具備強勁的競爭定位。

I will now turn the call over to Aaron for more details on our financial results and our guidance for the fourth quarter.

接下來我把電話交給 Aaron，請他更詳細說明我們的財務結果以及第四季的展望指引。

Thank you, Alan. Net revenue for the third quarter was $230.4 million and above the midpoint of our guidance. While we had an additional week in the quarter, we also lost manufacturing capacity in Asia due to the Lunar New Year holiday.

謝謝你，Alan。第三季淨營收為 2.304 億美元，高於我們指引區間的中點。雖然本季多了一週，但我們也因農曆新年假期而在亞洲損失了部分製造產能。

GAAP gross margin was 27.3%, and decreased 390 basis points quarter-to-quarter, driven primarily by a one-time inventory provision expense related to our 3-D sensing business. GAAP operating loss was 1% and GAAP net loss per share was $0.13. Our third-quarter non-GAAP gross margin was 32.2% and decreased 50 basis points relative to the prior quarter, driven by a sequential decline in optical communications gross margin, which was not fully offset by the increase in commercial laser's gross margin.

GAAP 毛利率為 27.3%，較前一季下降 390 個基點，主要是受到與我們 3D 感測業務相關的一次性存貨提列費用所致。GAAP 營業虧損率為 1%，GAAP 每股淨虧損為 0.13 美元。第三季非 GAAP 毛利率為 32.2%，較前一季下降 50 個基點，主因為光通訊毛利率季減，商用雷射毛利率提升的正面影響未能完全抵銷。

Non-GAAP operating margin for the third quarter was 8.8%, a decrease of 20 basis points sequentially. Non-GAAP earnings-per-share was $0.32 based on a fully diluted share count of [61.5 million], along with $400,000 of other expense primarily from foreign exchange losses and $200,000 of tax expense. Optical communications revenue was $197.2 million, an increase of approximately 6% relative to the prior quarter, driven by a $2.1 million or approximately 2% increase in Telecom, and a $10.5 million or approximately 30% increase in Datacom, which was partially offset by $1.2 million or approximately 9% decrease in industrial and consumer revenues.

第三季非 GAAP 營業利益率為 8.8%，較前一季下降 20 個基點。非 GAAP 每股盈餘為 0.32 美元，係以完全稀釋後股數 [6,150 萬股] 計算，另有 40 萬美元其他費用（主要來自外匯損失）以及 20 萬美元所得稅費用。光通訊營收為 1.972 億美元，較前一季增加約 6%，主要由電信（Telecom）增加 210 萬美元（約 2%）以及資料通訊（Datacom）增加 1,050 萬美元（約 30%）所帶動，但部分被工業與消費性營收減少 120 萬美元（約 9%）所抵銷。

Optical communications gross margin at 29.8% declined 90 basis points sequentially. As Alan mentioned, the third quarter has seasonally higher ASP erosion profitable communication, which more than offset the positive impact of higher volumes. Commercial lasers revenue was $33.2 million, an increase of $700,000 quarter-on-quarter. Gross margin at 46.7% increased 300 basis points due to the impact of cost reduction actions as well as favorable mix.

光通訊毛利率為 29.8%，較前一季下降 90 個基點。如 Alan 所提到，第三季在季節性因素下 ASP 侵蝕較高，對光通訊獲利的影響超過出貨量增加所帶來的正面效益。商用雷射營收為 3,320 萬美元，較前一季增加 70 萬美元。毛利率為 46.7%，因成本降低措施的影響以及產品組合有利而提升 300 個基點。

We had three customers that each contributed 10% or more of our third-quarter revenue, consistent with what we had in the prior quarter. Operating expenses totaled $53.9 million, with R&D expense at $32.8 million and SG&A expense of $21.1 million. The sequential operating expense increase was driven by the extra week as well as elevated payroll taxes at the beginning of the calendar year.

第三季有三位客戶各自貢獻了 10% 或以上的營收，與前一季一致。營業費用合計 5,390 萬美元，其中研發費用為 3,280 萬美元，銷售、一般及行政（SG&A）費用為 2,110 萬美元。營業費用的季增主要來自多出的一週，以及曆年年初較高的薪資稅。

Income tax expense was $200,000 for the quarter, as we continue to realize a low tax rate due to the utilization of net operating losses, and also by having a long-term annual tax deduction related to the amortization of the stepped-up tax basis realized during the spinoff from Viavi Solutions. Our cash balance was $157.2 million at the end of the third quarter, and we remain debt-free.

本季所得稅費用為 20 萬美元；由於我們持續利用淨營業虧損（NOL），因此有效稅率維持在較低水準，同時也受惠於自 Viavi Solutions 分拆時所產生、與調升後稅基攤銷相關的長期年度稅務扣除。第三季末現金餘額為 1.572 億美元，我們仍維持零負債。

Capital equipment additions were approximately $31 million or 13% of revenue during the third quarter. As highlighted on our last call, this level of CapEx is meaningfully above historical investment levels of roughly 4% to 6% of revenue. We are increasing investments in capital equipment in order to expand capacity to meet the rapidly growing demand from our customers, particularly for our 100G and ROADM products.

第三季資本設備新增投資約 3,100 萬美元，約占營收 13%。如我們上次電話會議所強調，這一水準明顯高於歷史投資水準（約占營收 4% 至 6%）。我們正在增加資本設備投資以擴充產能，滿足客戶快速成長的需求，特別是針對我們的 100G 與 ROADM 產品。

We expect CapEx investments in the fourth quarter to be in the range of $25 million to $30 million.

我們預期第四季的資本支出（CapEx）投資將落在 2,500 萬至 3,000 萬美元之間。

Now on to our guidance for the fourth quarter of fiscal 2016. We project net revenue for the fourth quarter to be in the range of $232 million to $242 million, with operating margin in the range of 8.5% to 10.0%, and earnings-per-share to be in the range of $0.32 to $0.38.

接下來說明 2016 會計年度第四季的展望指引。我們預估第四季淨營收將介於 2.32 億至 2.42 億美元之間，營業利益率介於 8.5% 至 10.0%，每股盈餘介於 0.32 至 0.38 美元。

In considering this guidance, please note that the fourth quarter is a normal 13-week period versus the 14 weeks last quarter, and therefore, operating expenses related to the extra week will decline sequentially. However, fourth-quarter operating expenses will still be larger than our last 13-week period, which was Q2 or December 2015 quarter.

在解讀此指引時，請注意第四季為正常的 13 週期間，相較於上季的 14 週，因此與多出一週相關的營業費用將會季減。然而，第四季營業費用仍將高於我們上一個 13 週期間，也就是第二季（2015 年 12 月季度）。

This is primarily due to the fourth quarter, including the full impact of annual merit salary increases, elevated payroll taxes during the first half of the calendar year, as well as our continued investments to drive future growth. While we have, and continue to add, manufacturing capacity, we continue to expect, on certain product lines, demand may still exceed our ability to supply, whether due to our internal manufacturing capacity or components that we purchase from vendors.

這主要是因為第四季將完整反映年度績效調薪的影響、曆年上半年較高的薪資稅，以及我們持續投入以推動未來成長。雖然我們已經並且仍在增加製造產能，但我們仍預期在某些產品線上，需求可能仍會超過我們的供應能力，無論是受限於內部製造產能，或是我們向供應商採購的零組件供應。

Now I'll turn the call back over to Chris to begin the Q&A session. Chris?

現在我把電話交回給 Chris，開始問答環節。Chris？

Thank you, Aaron. I would like to ask everyone to limit discussion to one question and one follow-up. Daria, let's begin the question-and-answer session now, please.

謝謝你，Aaron。我想請各位將討論限制在一個問題以及一個追問。Daria，請現在開始問答環節。

(Operator Instructions). Alex Henderson, Needham.

（接線員指示）。Alex Henderson，Needham。

Thanks very much for the question. So I was hoping you could give us some sense, you said in your comments that you are seeing clear increase in demand out of China and during the quarter. But the open questions is still whether the Chinese come back with another round of large orders.

非常感謝讓我提問。我希望你們能讓我們了解一些情況：你在評論中提到，你們看到來自中國的需求在本季明顯增加。但目前仍未解的問題是，中國客戶是否會再回來下另一波大額訂單。

I know NEO came out with comments saying that they were expecting 30,000 units of transceiver orders based on their conversations with the service providers. Can you help us with what you think the visibility is, and what your source of understanding out of China is, so that we can triangulate on that?

我知道 NEO 發表評論稱，根據他們與服務供應商的對話，他們預期會有 30,000 台收發器的訂單。你能否協助我們了解你認為目前的能見度如何，以及你們對中國市場的資訊來源是什麼，好讓我們能據此交叉驗證？

Yes, sure, Alex. Thanks for the question. We obviously meet with our direct customers, but we've also been more recently meeting with the three main carriers in China. And while the timing of new orders to our customers is not certainly clear, it is clear that there will be more deployments. And whether that's another 30,000 or 40,000 lines, it's not obvious to me. But I can say that every indication WE get, from both the carriers as well as our customers, indicate that there will be continuing demand through the rest of this calendar year and into 2017 calendar.

好的，當然可以，Alex。謝謝你的提問。我們當然會與直接客戶會面，但最近也更頻繁地與中國三大電信營運商會面。雖然新訂單何時會下到我們的客戶那裡，時間點並不確定，但可以確定的是，將會有更多部署。至於會是另外 30,000 或 40,000 條線路，我目前並不清楚。但我可以說，我們從營運商以及客戶雙方所得到的每一項訊號都顯示，需求將在今年剩餘期間並延續到 2017 年曆年持續存在。

Second question, just so that I understand, the mechanics around the fiber laser, it's my understanding that you had a problem with your coupling on the laser that you were shipping, that you've resolved that problem, figured out what it is, and that you are in the process of testing or re-qualifying it. When does that re-qualification process end? And when do we get back to ramping that product into Amada?

第二個問題，為了讓我理解清楚，關於光纖雷射的運作機制，我的理解是你們在出貨的雷射上，雷射耦合部分曾經出現問題，你們已經解決了該問題、找出原因，而且目前正在進行測試或重新認證。這個重新認證流程何時結束？我們何時能恢復把該產品對 Amada 的出貨拉升（ramp）？

Yes. Well, we believe we've solved the problem. We've been in production with the new process that provides a more -- much more reliable and robust structure for our fiber laser. And again, it's only one of our fiber lasers that we produce that have the problem.

是的。嗯，我們相信已經解決了這個問題。我們已經用新的製程投入量產，該製程為我們的光纖雷射提供更——更可靠且更穩健的結構。而且再次強調，只有我們所生產的其中一款光纖雷射有這個問題。

We have very stringent quality requirements from both our customer and their customers. And so, until it's proven for many, many (technical difficulty) capacity through the quarter and adding manpower to be able to increase the output of this new process. And so that's what we're going through today.

我們的客戶以及他們的客戶都有非常嚴格的品質要求。因此，在它被證明能夠在整個季度內以許多、許多（技術問題）產能運作，並且增加人力以提升這個新製程的產出之前，我們不會放鬆標準。所以這就是我們目前正在經歷的過程。

We are making progress every week. We produced more last week than we did the week before. And so we are continuing to drive the demand -- or drive the capacity to be able to catch up with the really pent-up demand in this one product line that we are seeing from Amada.

我們每週都在取得進展。我們上週的產量比前一週更多。因此我們持續推動需求——或者說推動產能，以便能追上我們從 Amada 在這條產品線上看到的、確實被壓抑已久的需求。

So that's the back-half of calendar 2016 that it starts to ramp?

所以是到 2016 年下半年才開始拉升（ramp）嗎？

Well, no, we are ramping now. I would say that, by the next quarter or so, we should be caught up with demand. But until our customer has hundreds and thousands of hours on these fiber lasers, it's not done until it's done. So I would say we should catch up this calendar year.

嗯，不，我們現在就在拉升。我會說，大概到下一季左右，我們應該就能追上需求。但在我們的客戶讓這些光纖雷射累積數百、數千小時的運轉時間之前，這件事還不能算完成；不到最後一刻都不能說完成。所以我會說我們應該能在今年曆年內追上。

Okay. Thanks. I'll cede the floor. Thanks.

好的。謝謝。我把時間讓給下一位。謝謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

Alan, Aaron, good afternoon, thank you for taking my questions. First, a clarification. Did I miss fiber laser revenue in the quarter? Or could you repeat it?

Alan、Aaron，下午好，謝謝你們回答我的問題。首先確認一下。我是不是漏掉了本季的光纖雷射營收？或者你們可以再重複一次嗎？

No, but it was $9.3 million.

沒有，但金額是 930 萬美元。

All right, great. And then I guess just focusing on ROADMs, can you help us understand the relative mix between TrueFlex and non-TrueFlex so we can understand the kind of rolloff versus the growth driver there? And on the conviction in China deploying ROADMs in 2017, what gives you that level of comfort, given that it seems like long-haul still has a significant amount of, I guess, tailwinds over the next few quarters?

好的，很好。接著我想聚焦在 ROADM，你們能否協助我們理解 TrueFlex 與非 TrueFlex 的相對組合占比，讓我們能理解那邊的下滑與成長動能各自來自哪裡？另外，關於你們認為中國在 2017 年會部署 ROADM 的把握度，是什麼讓你們有那樣的信心？考量到看起來長途（long-haul）在接下來幾季仍有相當程度的——我想——順風（tailwinds）。

Yes. So, TrueFlex is roughly 70%, 75% of our overall ROADM today. And that's why we are confident that we will continue to grow our overall ROADM as the non-TrueFlex has become a much smaller share of the business.

是的。TrueFlex 目前約占我們整體 ROADM 的 70% 到 75%。也因此我們有信心，隨著非 TrueFlex 已成為業務中更小的一部分，我們的整體 ROADM 仍將持續成長。

As far as confidence in China, again, this has to do with going and talking to the carriers themselves, seeing what they are doing in their labs and in their field trials, much like what is going on here in North America. So, I think from my perspective, ROADMs will go out -- and I've been consistent in the last couple of calls -- in China in 2017. I'm gaining confidence in that conviction, as you say, based on the progress that we've made with the carriers and the major network equipment manufacturers in China that give me that extra confidence.

至於對中國的信心，同樣是因為我們去與電信營運商本身交流，看看他們在實驗室與現場試驗中在做什麼，這與北美目前正在發生的情況很類似。所以，就我個人的觀點，ROADM 會在——而且我在過去幾次電話會議中一直保持一致——於 2017 年在中國推出。如你所說，基於我們與中國的營運商以及主要網路設備製造商所取得的進展，我對這個判斷的信心正在提升，這也給了我額外的信心。

And by the way, ROADMs also go in the core of the network as well. Not nearly the number or count as go into the metro deployments, but -- so I think we'll -- we are seeing them today in the core network deployments, but really next year, more broadly throughout the network from the metro all the way through the core.

順帶一提，ROADM 也會部署在網路核心（core）。數量或台數遠不如都會區（metro）部署那麼多，但——所以我認為我們——今天已經在核心網路部署中看到它們，但真正更廣泛地從都會區一路到核心、遍及整個網路，會是在明年。

Great. And then as my follow-up, I guess just dovetailing off of Aaron's commentary on capital expenditures, can you help us understand the percentage of your optical platform that is currently capacity-constrained, highlighting either Telecom versus Datacom, or any way you want to frame it?

很好。接著我的追問，我想延續 Aaron 對資本支出（capital expenditures）的評論，你們能否協助我們理解，目前你們的光學平台中有多少比例受到產能限制（capacity-constrained），可以用電信（Telecom）對比數據通訊（Datacom）來說明，或用你們想要的任何方式來框架？

Well, we were having this discussion about how to answer this question before the call. And when we look around and ask, what could we actually take more orders of today and satisfy them in relatively short lead-times? I'd say probably 10 gig Datacom but not a lot else. So I would say the vast majority of our products are constrained.

嗯，我們在電話會議前就討論過要怎麼回答這個問題。當我們環顧四周並自問：今天有哪些產品我們其實可以接更多訂單，並在相對較短的交期內滿足？我會說大概是 10G Datacom，但除此之外不多。所以我會說，我們絕大多數產品都受到產能限制。

Great. Thanks for taking --

很好。謝謝你們——

That's why we have that elevated level of CapEx that Aaron talked about -- $30 million last quarter and another $25 million to $30 million this quarter.

這也是為什麼我們有 Aaron 提到的較高資本支出水準——上季 3,000 萬美元，本季還有另外 2,500 萬到 3,000 萬美元。

All right. Thank you for the color. Good luck.

好的。謝謝你們提供的補充說明。祝順利。

Thanks, Patrick.

謝謝，Patrick。

Troy Jensen, Piper Jaffray.

Troy Jensen，Piper Jaffray。

Hey, congrats on a nice quarter, gentlemen. Hey, so Alan, you made comments in your prepared remarks about North American metro strength. Obviously there's been a lot of questions from clients on Verizon strike. So just kind of curious, your comments about the strength in metro and what you may know about just kind of the Verizon situation right now?

嘿，各位先生，恭喜本季表現不錯。Alan，你在事先準備的發言中提到北美都會區（metro）需求強勁。顯然客戶對 Verizon 罷工有很多疑問。所以我想請教，你提到都會區的強勁表現，以及你目前對 Verizon 情況的了解是什麼？

Yes. We talked to both Verizon as well as the two main network equipment manufacturers supplying into the Verizon metro build. And according to everyone we talked to, there's no impact that they've noted, or have seen, or are planning for, due to the strike. So we are still forging forward and building product in anticipation of the deployment starting later this quarter.

是的。我們與 Verizon 以及供應 Verizon 都會區建設的兩家主要網路設備製造商都談過。根據我們交談的所有對象，他們沒有注意到、沒有看到、也沒有因罷工而做任何影響評估或規劃。因此我們仍持續推進，並在預期本季稍晚開始部署的前提下，提前備貨生產。

Okay. And then maybe one for Aaron here. Aaron, have you ever thought about like a business model target? Or can you just help us out with operating margin leverage? As the business ramps and we get into the cycle, maybe what revenue levels are -- what timeline can you give to certain thresholds for operating margins?

好的。接著可能問 Aaron 一題。Aaron，你們是否曾想過設定某種商業模式目標？或者你能否協助我們理解營業利益率（operating margin）的槓桿效應？隨著業務拉升、我們進入景氣循環，你能否提供在某些營業利益率門檻下，對應的營收水準——以及你能給的時間軸？

Sure, Troy. So -- yes, our targets are set on getting to double-digit operating margins, 10% as quickly as we can. In terms of the gross margins at 32.2%, we are about 100 to 150 basis points shy of where we had been targeting. There's a couple of reasons for that.

當然，Troy。所以——是的，我們的目標是盡快把營業利益率提升到兩位數，也就是 10%。就毛利率 32.2% 而言，我們大約比目標低了 100 到 150 個基點。這背後有幾個原因。

One is you noticed the laser mix is a little bit lighter than it has been in the past. Get the laser mix back up towards (technical difficulty) [18% to 20%], and that should contribute 50 basis points or so. And then we also are a little bit behind on consolidating into fab into the fab center in San Jose.

其中一個是，你注意到雷射產品組合（laser mix）相較於過去略為偏輕。把雷射產品組合拉回到（技術問題）[18% 到 20%]，這應該能貢獻約 50 個基點。另外，我們在把製造整併到聖荷西的晶圓廠中心（fab center）這件事上，也稍微落後。

And that's supposed to give us close to 100 basis points of uplift in gross margins. In terms of the OpEx -- so, OpEx (technical difficulty) [23% to 23.5%] of sales, over the near-term, we expect to (technical difficulty) continue to invest for future growth. Beyond that, we anticipate being able to (technical difficulty) [22%].

而這原本應該能讓我們的毛利率提升接近 100 個基點。就營業費用（OpEx）而言——也就是 OpEx（技術問題）約占銷售額的 [23% 到 23.5%]，在短期內，我們預期會（技術問題）持續投資以支持未來成長。再往後，我們預期能夠（技術問題）降到 [22%]。

All right. Perfect. I wish you luck, gentlemen.

好的。完美。祝各位好運，先生們。

Dave Kang, B. Riley.

Dave Kang，B. Riley。

My first question is regarding your ROADMs and one of your competitors -- actually I guess only competitor -- they said in the previous call that they are in the process of getting into -- getting qualified into Verizon. Has that happened? And what is your expected allocation going forward?

我的第一個問題是關於你們的 ROADM，以及你們的一位競爭對手——其實我想也算是唯一的競爭對手——他們在上一通電話會議中表示，他們正在進行進入——取得 Verizon 認證的流程。這件事發生了嗎？以及你們對未來的份額分配（allocation）有何預期？

Well, I think you should ask them if it's happened. From my perspective, our customers are relying extremely heavily on our ability to meet their demand. And once our competitor gets qualified, it will be up to them to be able to perform. And I think, given the number of ROADM nodes in the Verizon network, I think there's plenty of it to go around for both of us. But I still expect to have the vast, vast majority of the business.

嗯，我想你應該去問他們是否已經發生了。就我看來，我們的客戶非常高度仰賴我們滿足其需求的能力。而一旦我們的競爭對手取得認證，接下來就看他們能否交付表現。而且我認為，考量 Verizon 網路中的 ROADM 節點數量，我想市場量能足夠讓我們兩家都分得到。但我仍然預期我們會拿下絕大、絕大多數的業務。

And then going back to second quarter, I believe you said you left about $10 million-ish, maybe $20 million on the table because of capacity constraints and component bottleneck. How much was it at this quarter?

再回到第二季，我記得你們說因為產能限制與零組件瓶頸，大概有 1,000 萬美元左右、也許 2,000 萬美元的機會沒能做成。那這一季是多少？

It's hard to quantify, but it's probably north of that, just given that we have orders that have request dates that are within the quarter that we push out of the quarter. But given the high percentage of revenue that we get through VMIs, it's really hard to tell. Because most of the VMIs are low or empty at the end of the quarter, so that makes it hard to really kind of put a quantification on it.

這很難量化，但可能高於那個數字，因為我們確實有一些訂單的需求交期是在本季內，但我們把它延後到季外。不過，由於我們有很高比例的營收是透過 VMI（供應商管理庫存）產生，真的很難判斷。因為大多數 VMI 在季末時不是很低就是接近清空，所以很難真正把它量化出來。

But it sounds like your book-to-bill, I mean, you say it's overwhelmed. but it sounds like it's pretty solid, like maybe 1.2, 1.3, that type?

但聽起來你們的接單出貨比（book-to-bill），我是說，你們說需求被淹沒了。但聽起來其實相當穩健，可能是 1.2、1.3 這種水準？

We don't break that out, but it was extremely strong. And it stays very, very strong through the month of April.

我們不會把那個數字拆開揭露，但確實非常強勁。而且在四月份整個月都維持非常、非常強勁。

So if that's the case, then are you -- I guess this current quarter, the June quarter, I guess you are still going to be capacity-constrained. Is that why for conservative revenue outlook?

所以如果是這樣，那你們——我想這一季，也就是六月這一季，你們應該仍然會受限於產能。這就是你們給出保守營收展望的原因嗎？

Yes. I mean, we are capacity-constrained through this year or through this quarter. I will say that one of the dynamics that happens when allocations start is that some of our customers that are VMI customers start giving us discreet orders as a signal that they really will take the product, as opposed to having it sit in the VMI house. So that's also an indicator of allocation and some of the behaviors that go on when customers really, really want the product.

是的。我的意思是，我們今年、至少這一季都受限於產能。我會說，當開始進行配給（allocation）時會出現一個動態：我們一些 VMI 客戶會開始給我們離散的訂單（discreet orders），作為他們確實會拿貨的訊號，而不是讓產品放在 VMI 倉裡。所以這也是配給的一個指標，以及當客戶真的、真的想要產品時會出現的一些行為。

So, yes, I would say that we are going to be on allocation through this quarter and into next quarter. And again, that's why we are spending between $55 million and $60 million in this half of the fiscal year in capital.

所以，是的，我會說我們這一季以及到下一季都會處於配給狀態。同樣地，這也是為什麼我們在本財年上半年資本支出會投入 5,500 萬到 6,000 萬美元。

Got it. Thank you.

了解。謝謝。

Thanks, Dave.

謝謝你，Dave。

James Kisner, Jefferies.

James Kisner，Jefferies。

I was just curious what your longest lead-time products are that you have right now? And how many weeks of lead-time you're looking at? And just sort of relatedly, it sounds like you may not be in allocation a couple orders from now you expect? I mean, might the CapEx levels drop more significantly after we get out of the next quarter? Or just wait and see on that?

我只是好奇，你們目前交期最長的產品是哪些？你們看到的交期大概是幾週？另外相關地，聽起來你們可能再過幾筆訂單之後就不會處於配給狀態？我的意思是，等我們走出下一季之後，資本支出（CapEx）水準是否可能更明顯地下滑？還是就先觀察再說？

Well, I think to give a lead-time on a new order is difficult. Because there's -- well, there's a lot of products that are, if you get an order today, will be scheduled out into the summer through August and September. I'd say that some of the products with the longest lead-times today are ROADMs, our TrueFlex ROADMs, and 980 pumps. Both because 980 pumps go in amplifiers and new lines are going out and being deployed. But also we use a lot of pumps in our TrueFlex ROADM line cards. So we've been adding a lot of capital in our 980 pumps as well as in our ROADMs and our super transport blade lines.

嗯，我認為要對一筆新訂單給出交期是困難的。因為——嗯，有很多產品如果你今天下單，排程會一路排到夏季，甚至到八月、九月。我會說，目前交期最長的一些產品是 ROADM、我們的 TrueFlex ROADM，以及 980 泵浦（980 pumps）。原因之一是 980 泵浦用在放大器裡，而新的線路正在鋪設與部署。但同時，我們在 TrueFlex ROADM 的線卡上也使用大量泵浦。因此，我們在 980 泵浦、ROADM，以及我們的超級傳輸刀鋒（super transport blade）產線上都增加了不少資本投入。

Does that answer your question, James?

James，這有回答到你的問題嗎？

I guess it helps. I mean, on the CapEx?

我想有幫助。我是說，關於資本支出（CapEx）呢？

Yes. So, On the CapEx front, so again we are spending roughly $25 million to $30 million this quarter. Demand still looks pretty strong. So as we get out into the Q1, we don't need to spend the level that we spent the last two quarters. It will start to tail off. And it's our belief that CapEx will return back to the 4% to 6% of revenue level towards the back-half of FY17.

有。所以，在資本支出方面，再次說明，我們這一季大約會花 2,500 萬到 3,000 萬美元。需求看起來仍然相當強勁。因此當我們進入 Q1 時，我們不需要再維持過去兩季那樣的支出水準。它會開始逐步下滑。而我們的看法是，資本支出將在 FY17 後半段回到約占營收 4% 到 6% 的水準。

Okay. And just one last one if I can sneak it in. On pricing, you said it was down 6%, and I'm just kind of confused why almost all your products are in shortage, that you are seeing worse than usual price declines. Could you clarify why that is?

好的。如果我可以再塞最後一個問題。在定價方面，你說下滑了 6%，我有點困惑，因為你們幾乎所有產品都處於短缺狀態，為什麼你們仍看到比平常更差的價格下滑？你能澄清一下原因嗎？

Yes. I wouldn't say it's worse than normal. I'd say that typically the March quarter has the brunt of the annual price reduction. Some of these price negotiations were done months, if not quarters, ago. And as I said in the past, products like our ROADM line cards, those prices were negotiated two years ago. And so those are done and set in stone.

可以。我不會說這比正常更差。我會說，通常三月季度會承擔年度降價的主要部分。其中一些價格談判是在幾個月前、甚至幾個季度前就完成了。而且如我過去所說，像我們的 ROADM 線卡這類產品，其價格是兩年前就談定的。所以那些都已完成並且已經定案。

I'd say also that we are in this with our customers to win. And taking advantage of a short-term blip is not what we intend to do -- not that this is a short-term blip, so let me back that up a minute. We don't try to take advantage of our customers. We need them to be competitive to win in the marketplace because we value their long-term partnership.

我也想說，我們是和客戶一起投入其中、一起爭取勝利。而利用短期的波動並不是我們的本意——也不是說這是短期波動，所以讓我先把話收回來澄清一下。我們不會試圖占客戶的便宜。我們需要他們具備競爭力，才能在市場上取勝，因為我們重視與他們的長期夥伴關係。

So I wouldn't say that just under 6% was anything abnormal, because we typically see 2% to 3% in the other quarters. And so that kind of adds up to that 10% to 15% that we typically see in an annual production.

所以我不會說略低於6%有什麼不正常，因為我們在其他季度通常看到的是2%到3%。因此那樣加總起來，就會接近我們在年度產量中通常看到的10%到15%。

Thank you very much.

非常感謝。

Rod Hall, JPMorgan.

Rod Hall，摩根大通。

Thanks for the question. I guess I'll start with a question and then a clarification. The Datacom 100 gig revenue was up I think 140% quarter-over-quarter. Can you just comment on what drove that? Was that a Web 2.0 customer, your -- the largest one that you guys have talked about in the past? Or is there any other color you can give us on what's driving that growth?

謝謝你的提問。我想我先問一個問題，然後再做一個釐清。Datacom 100G 的營收我記得是季對季成長約140%。你能評論一下是什麼驅動了這個成長嗎？那是某個 Web 2.0 客戶嗎——就是你們過去談過的最大那一家？或者你們能否再多提供一些資訊，說明是什麼在推動這個成長？

And then the clarification, I just wanted to go back to the Verizon strike and ask you -- you said there's no impact. But at what point would there be? How long would the strike have to run before you think demand would be impacted? Or do you think there would be any impact from a longer-running strike? Thanks.

然後關於釐清，我想回到 Verizon 罷工這件事再問你——你說沒有影響。但在什麼情況下才會有影響？罷工要持續多久，你才會認為需求會受到影響？或者你認為若罷工拖得更久，會有任何影響嗎？謝謝。

Sure. So the cause of the growth in 100G was mainly to our network equipment manufacturers. As they deploy their 100 gig line side products, they need a client side transceiver. So a lot of CFP2's and CFP4's and now QSAP28's are going out into those client sides of the Telecom networks.

好的。100G 成長的原因主要來自我們的網路設備製造商客戶。當他們部署 100G 的線路側（line side）產品時，需要用戶側（client side）的收發器。因此有大量的 CFP2、CFP4，現在還有 QSFP28，出貨到電信網路的用戶側。

We are starting to see some traction in the hyperscale data centers customers, but more in the pilot type applications, although we have received a multimillion-dollar order for QSAP28s from a major hyperscale data center customer that we've never done business with before that we expect to start shipping this quarter but -- as well as into next quarter.

我們開始在超大規模資料中心客戶那邊看到一些進展，但更多是在試點型的應用；不過我們也收到一家主要超大規模資料中心客戶的數百萬美元 QSFP28 訂單，這是我們以前從未合作過的客戶，我們預期本季開始出貨——並且也會延續到下季。

So I'd say that, again, the hyperscale really takes off in the second half of the calendar year and contributes meaningfully then. But the growth we saw in the March quarter was mostly to the network equipment manufacturers. As far as the Verizon strike impact, I suppose there could or should be impact if it lasts a really long time. I don't have a crystal ball on that.

所以我會說，超大規模的需求會在曆年下半年真正起飛，並在那時做出有意義的貢獻。但我們在3月季度看到的成長，主要還是來自網路設備製造商。至於 Verizon 罷工的影響，我想如果它持續非常久，可能就會或應該會有影響。我也沒有水晶球可以預測。

Every indication I've got is that there's no impact. But I assume if it goes on for months and months, that there may be an impact. But, to date, in the horizon that I see, I can't foresee any impact in the next few months.

我目前得到的所有跡象都顯示沒有影響。但我假設如果它一拖就是好幾個月，可能會有影響。不過就目前、在我能看到的時間範圍內，我無法預見未來幾個月會有任何影響。

Okay. And just one more if I can sneak it in. The -- just wondering, last time we saw you, you said you thought the real ramp in North American component supply for the 100 gig rollout would happen in late May/early June. Is that still the timeframe that you expect component demand to ramp in? Or do you have any more visibility on when you expect the ramp to occur?

了解。如果可以的話我再插問一個。我想知道，上次見到你們時，你們說你們認為北美在 100G 推廣上的元件供應真正放量會在5月底/6月初發生。這仍然是你們預期元件需求開始放量的時間點嗎？或者你們對放量發生的時間有更進一步的能見度？

Are you talking about the Metro deployment?

你是在說都會網（Metro）的部署嗎？

Yes. Metro 100 gig.

是的。都會網 100G。

Yes, I think that's still consistent with our current thinking.

是的，我認為這仍然與我們目前的看法一致。

Okay. Great. Thank you.

好的。很好。謝謝。

So, May and June and July.

所以，5月、6月和7月。

Okay. Thanks.

好的。謝謝。

Simon Leopold, Raymond James.

Simon Leopold，Raymond James。

Thank you for taking my question. This is [Molicio] for Simon Leopold. Last quarter you talked about a production constraints which reduced sales by close to $10 million to $20 million. Can we get an update on that? Did this quarter includes any catchup sales from that slog of revenue does lead to the December quarter?

謝謝讓我提問。我是 [Molicio]，代替 Simon Leopold。上季你們提到產能限制，導致銷售少了接近1,000萬到2,000萬美元。我們可以更新一下這部分的狀況嗎？本季是否包含任何補回銷售，從而使那段遞延的營收延續到12月季度？

Well, I wouldn't say that we reduced sales. I would say that we weren't able to satisfy demand from our customers by, say, $20 million last -- in the December quarter. That demand I would assume was satisfied in the January/March quarter. But -- and again, there was demand that wasn't satisfied in the March timeframe that's being satisfied now. And there's orders today that customers want this quarter that is not going to be satisfied this quarter.

嗯，我不會說我們降低了銷售。我會說的是，我們在上一個——12月季度，無法滿足客戶需求的缺口大約是2,000萬美元。我推測那部分需求在1月/3月季度已經被滿足。但是——同樣地，在3月那段期間也有未被滿足的需求，現在正在被滿足。而且今天也有客戶希望在本季交付的訂單，但本季將無法滿足。

So I wouldn't say it's a reduction in revenue. I'd say it's an allocation that we've been having to deal with that, again, why we are adding so much capital to our production capability. So I think your question is, did that demand go away? And I would say no, the demand did not go away. Because as an industry as a whole, I think for most of the products that we ship, there's allocation across the industry.

所以我不會說這是營收的減少。我會說這是我們一直必須面對的配給（allocation）問題；也正因如此，我們才會投入這麼多資本來提升產能。所以我想你的問題是，那些需求是否消失了？我會說沒有，需求並沒有消失。因為就整個產業而言，我認為對於我們出貨的大多數產品，整個產業都存在配給情況。

Okay. And the other question I have is what portion of the sales do you generate from China? Is all this equipment ultimately deployed in China?

好的。我另一個問題是，你們有多少比例的銷售來自中國？這些設備最後是否都部署在中國？

So this is Aaron. So in terms of the percentage of business in China, we ship roughly 1/3 of our business into Hong Kong and China. All of APAC is roughly 60% of business.

我是 Aaron。就在中國的業務占比而言，我們大約有三分之一的業務出貨到香港和中國。整個亞太地區（APAC）大約占我們業務的60%。

But keep in mind that may not be deployed in Asia. So, a lot of our North America customers use contract manufacturers in China, as well as some of the product that we ship into North -- into Chinese network equipment manufacturers don't all stay in China, and they end up in Europe or Middle East/Africa.

但請記住，這些不一定部署在亞洲。因此，我們很多北美客戶在中國使用代工廠；另外，我們出貨給——出貨給中國網路設備製造商的部分產品也不一定都留在中國，最後會流向歐洲或中東/非洲。

Okay. That's helpful, thank you.

好的。這很有幫助，謝謝。

Sure.

不客氣。

Richard Shannon, Craig-Hallum.

Richard Shannon，Craig-Hallum。

Thank you for taking my questions. I think my first one is on the Datacom space, I think you mentioned receiving a multimillion-dollar order from a Web 2.0 that you hadn't previously worked with. Can you share with us whether this is CWM, LR4 or something else? What do you view as the share allocation?

謝謝讓我提問。我第一個問題是在 Datacom 領域，我想你提到收到一家你們先前未合作過的 Web 2.0 客戶的數百萬美元訂單。你能否和我們分享，這是 CWM、LR4 還是其他產品？你如何看待份額分配（share allocation）？

And Alan, if you could give us a sense of what's the primary criteria for being -- getting awards now? Is it price? Is it performance? Is it ability to ramp? I'd love to get a feeling for what's most important for these customers right now.

Alan，你能否讓我們了解一下，目前獲得—拿到訂單/獎項的主要評選標準是什麼？是價格嗎？是效能嗎？是擴產爬坡能力嗎？我很想了解，對這些客戶而言，現在最重要的是什麼。

Sure. Yes. The particular order I was talking about is for a CWDM4 order, and I would say that the criteria for getting that order was ability to give them product. And so I'd say some of our competitors are certainly good at giving price, but not necessarily delivering.

當然。是的。我剛才提到的那筆特定訂單是CWDM4的訂單，我會說，拿到那筆訂單的標準是我們有能力提供他們產品。所以我會說，我們的一些競爭對手確實很擅長給出價格，但不一定能交付。

So at the end of the day, when the customer needs product, they're going to order it from the people that can actually provide it. And so I'd say that there is a group of suppliers in the industry today that have credibility and the ability to ramp, and price becomes less of an important thing.

所以歸根結底，當客戶需要產品時，他們會向真正能供貨的人下單。因此我會說，現今產業中有一群供應商具備可信度與擴產能力，而價格就變得沒那麼重要。

And so we certainly price to be able to make money, whereas others may not. So I'd say the key criteria in getting that order as well as getting, I think, orders throughout this calendar year and into next, will be ability to ramp high-quality, high-volume production when we need it.

因此我們的定價當然是以能賺錢為前提，而其他人可能不是。所以我會說，拿到那筆訂單以及我認為在今年曆年、乃至明年取得訂單的關鍵標準，將是當我們需要時，能夠擴產爬坡到高品質、高產量的生產能力。

Okay. And Alan, do you have a sense of what kind of a share allocation you're getting here? Just kind of rough thoughts, qualitative or quantitative?

了解。Alan，那你是否知道你們在這裡拿到的份額分配大概是多少？大概的想法即可，定性或定量都行？

I really don't. They are pretty secretive on what they do. I'd say, though, that based on what I understand, it's a large share of a need that they had come up pretty rapidly. So, they'd like to have it all this quarter. We are not able to provide it all to them this quarter. So it will fall into the July quarter as well.

我真的不知道。他們對自己的作法相當保密。不過我會說，根據我的理解，這是他們某項需求在很短時間內快速浮現，而我們拿到的份額很大。所以，他們希望這一季就全部拿到。但我們這一季無法全部供應給他們。因此也會落到7月那一季。

Okay. Thanks for that. My quick follow-up question, just looking into the June quarter guidance on the topline. Give us a sense of kind of the relative moving parts Datacom, Telecom and the commercial lasers relative to the kind of growth implied at the midpoint here.

了解。謝謝你的說明。我有個快速追問：就6月季度營收指引的營收端來看，請你讓我們了解一下，Datacom、Telecom以及商用雷射在這裡中位數所隱含的成長之下，各自相對的變動因素。

Sure. I'd say that if you look at lasers and industrial and consumer, it's probably flattish with lasers going up, and industrial and consumer softening again this quarter. And then Datacom and Telecom both growing from today's level even in the 13-week versus 14-week.

當然。我會說，如果你看雷射以及工業與消費性，整體大概持平：雷射上升，而工業與消費性在本季再度轉弱。然後Datacom與Telecom都會從目前水準成長，即使是在13週對比14週的情況下也是如此。

Okay, great. I appreciate the perspective. That's all for me.

好的，很棒。感謝你的觀點。我這邊就到這裡。

Okay, thanks, Richard.

好的，謝謝你，Richard。

Tim Savageaux, Northland Capital.

Northland Capital的Tim Savageaux。

If I could follow up on that guidance mix question, actually given your answer to a previous question about the Web scale order. I mean, would we then assume there's a pretty big divergence on sequential growth between Datacom and Telecom this quarter. Your answer there seemed to suggest that it might be a little more similar. But given this large order that you commented that seems to have some near-term demand around it, I wonder if you can -- if we can try and go at the Telecom versus Datacom growth factor from that perspective.

我想就剛才那個指引組合的問題追問一下，尤其是考量你先前對Web scale訂單的回答。我的意思是，那我們是否應該假設本季Datacom與Telecom的季增成長會出現相當大的分歧？你剛才的回答似乎暗示兩者可能更相近一些。但鑑於你提到的這筆大訂單看起來在短期內有一些需求，我想知道你能否—我們能否從這個角度來切入Telecom相對Datacom的成長因素。

I think -- it's really hard for me to say. I mean, the -- if you normalize last quarter for a 13-week quarter, our growth is not insignificant to our fourth quarter. But I'd say it's more balanced this quarter than last quarter, where we saw most of the growth come from Datacom, I'd say we'd see more of a balance between Datacom and Telecom.

我認為—這真的很難說。我的意思是—如果把上一季按13週季度做標準化，我們相對第四季的成長並不小。但我會說，本季會比上一季更均衡；上一季我們看到大部分成長來自Datacom，而我會說本季Datacom與Telecom之間會更平衡。

And keep in mind, while we grew Telecom 2% last quarter, we probably grew units more like 7% or 8%, given the ASP reduction we had in the quarter. So I'd say that that would more normalize this quarter and have less ASP reduction, and have that unit growth reflect more in absolute revenue growth in the June quarter, whereas it didn't in the March quarter as much.

另外請記住，雖然我們上一季Telecom營收成長2%，但考量該季ASP下滑，我們的出貨量成長可能更接近7%或8%。所以我會說，本季會更趨於正常化、ASP下滑會較少，因而在6月季度，出貨量成長會更直接反映在絕對營收成長上；而在3月季度就沒有那麼明顯。

Right. Understood. And if I could maybe follow up on that on the Telecom side. Wonder if you had any comments, given some granularity on ROADM growth trends, and I'm assuming that may re-accelerate here in the quarter, but you talked about broadly being capacity-constrained in the pump and amplifier type space.

好的。了解。我想在Telecom端再追問一下。想請問你是否能就ROADM的成長趨勢提供一些更細的看法；我猜測本季可能會再度加速，但你也提到在泵浦與放大器這類領域整體上受到產能限制。

I wonder if you are seeing -- if you did see growth there in the quarter? Or you were capacity-constrained enough not to really see that and maybe have that pending capacity additions over the next quarter or two, to see a reacceleration in amplifier and pump laser growth?

我想知道你是否看到—你們在該季是否確實看到那邊的成長？或者你們的產能限制嚴重到其實看不太出來，可能要等接下來一兩季的產能擴增到位後，才會看到放大器與泵浦雷射的成長再加速？

Yes, I wouldn't say that our amplifier business really grew. I'd say that our pump business grew, with external shipments to external customers. But I'd also say that our pump business also grew status line internal demand for pumps that go into our line cards and to what we call our super transport blades, where we have a ROADM and an amplifier and an optical channel monitor on a blade.

是的，我不會說我們的放大器業務真的有成長。我會說我們的泵浦業務有成長，包含對外部客戶的外部出貨。但我也會說，我們的泵浦業務也因為內部對泵浦的需求而成長，這些泵浦會用在我們的線卡，以及我們所稱的超級傳輸刀鋒（super transport blades）上；在那個刀鋒上，我們把ROADM、放大器與光通道監測器整合在一起。

So I think from that perspective, pumps were constrained for the quarter. We added capacity through the quarter. We are still constrained and we are still adding more capacity. And when we look at capital, and when we pull the trigger on capital, it's a lot easier to pull the trigger on capital where we have one competitor versus six competitors.

所以我認為從這個角度來看，本季泵浦是受限於產能的。我們在本季期間增加了產能。我們仍然受限，而且仍在持續增加更多產能。而當我們看資本支出、決定投入資本時，在只有一個競爭對手而不是六個競爭對手的領域，下決心投資要容易得多。

And so things like pumps and ROADMs, where we have a very limited set of competitors, we are a lot more able to add capacity with a clear conscience. So I think that's what we are trying to do in those kinds of product lines. Where also our customers don't have a lot of choice, and so if we don't come through, we disappoint them. So we really try to make sure that we put capacity in place to make sure our customers get what they need to satisfy their customers.

因此像泵浦與ROADM這類產品線，我們的競爭對手非常有限，我們更能夠心無旁騖地擴增產能。所以我認為這就是我們在這些產品線上努力的方向。同時我們的客戶也沒有太多選擇，因此如果我們交不出來，就會讓他們失望。所以我們真的會確保把產能建置到位，讓客戶能拿到他們所需，以滿足他們的客戶需求。

Thanks.

謝謝。

Doug Clark, Goldman Sachs.

Goldman Sachs的Doug Clark。

This is Balaji Krishnamurthy on for Doug Clark. First off, just two quick questions on products. How large was your QSFP28 revenue base now? And are you still on track for CFP2ACO by the calendar fourth-quarter? And then last quarter you talked about some organizational changes with R&D sales and operations. Could you talk about how that's impacting your business now? Thanks.

我是代Doug Clark提問的Balaji Krishnamurthy。首先，關於產品有兩個快速問題。你們目前QSFP28的營收基礎有多大？以及你們是否仍按計畫在曆年第四季推出CFP2ACO？另外，上季你們談到在研發、銷售與營運方面做了一些組織調整。你能談談這對你們目前的業務有何影響嗎？謝謝。

Okay. How large is QSFP28? It grew very rapidly last quarter, but it's still in the $2 million per quarter range in the March quarter. We expect that to continue to accelerate. And as we get into more meaningful hyperscale data center guys, that will become a very, very large part of our 100 gig business.

好的。QSFP28 的規模有多大？上一季成長非常快速，但在 3 月季度仍大約落在每季 200 萬美元的區間。我們預期這將持續加速。而當我們切入更具規模的超大型資料中心客戶時，這將成為我們 100G 業務中非常、非常大的一部分。

CFP2ACO by the end of the calendar year, absolutely, we are still on track, making excellent progress at the PIC level, the photonic integration at the chip level, where again we have the single-chip solution that does the laser and the modulator that we think will be very differentiated. Albeit not first to market, we believe we will have best of cost and best of volume. But as I said, really by the end of the calendar year, we will be releasing that product.

CFP2ACO 在日曆年度年底前，絕對地，我們仍按計畫進行，並在 PIC 層級、也就是晶片層級的光子整合方面取得極佳進展；在這裡我們同樣擁有單晶片解決方案，可同時完成雷射與調變器，我們認為這將非常具差異化。儘管不是第一個上市，我們相信我們將在成本與出貨量上都具備最佳優勢。但如我所說，確實在日曆年度年底前，我們將會發布該產品。

So, re-org, yes. So we promoted and moved some people around. We promoted Vince Retort, who was -- has been running our R&D very effectively for years, to be our Chief Operating Officer, and promoted some people from within R&D to lead R&D. John Martino now runs all of our R&D working for Vince.

所以，重整組織，是的。我們提拔並調整了一些人員配置。我們提拔 Vince Retort——他多年來一直非常有效地帶領我們的研發——擔任營運長（COO），並從研發團隊內部提拔一些人來領導研發。John Martino 現在負責我們所有研發工作，向 Vince 匯報。

And so I would say that to my great satisfaction, that R&D teams and operation teams are working a lot more closely together, which was really one of the desires of the change that we made. And I'd say that we are working more as one team as opposed to two silos of teams, given the change that we made. So I think what we strive to go get done is happening, and so I'm very happy with how things are transpiring so far.

因此我會說，令我非常滿意的是，研發團隊與營運團隊現在更緊密合作，這正是我們這次變革的主要目的之一。而且我會說，經過這次調整後，我們更像是一個團隊在運作，而不是兩個各自為政的團隊孤島。所以我認為我們努力要達成的事情正在發生，我也很高興目前進展的情況。

Great, thanks.

很好，謝謝。

(Operator Instructions). Joseph Wolf, Barclays.

（接線員指示）。Joseph Wolf，巴克萊。

I had a follow-up question for the commentary on the 100G to the sales to the NIMs. And I'm just wondering if you could -- or if you have the visibility into the breadth of the exposure across the hyperscale market? Meaning if there are 7 to 10 big global players, how many do you think you're ending up in?

我有一個追問，關於你們提到 100G 對 NIMs 的銷售評論。我想請問你們是否能掌握在超大型雲端市場中曝險／切入的廣度？也就是說，如果全球有 7 到 10 家大型玩家，你們認為最後會進入其中多少家？

You mentioned the one selling directly. How many -- if you look across that, how many opportunities do you think you have and how long does that last? Are the global players all going at the same rate? Or is this a multiyear opportunity?

你提到其中一家是直接銷售。如果從整體來看，你們認為有多少機會、而這個機會能持續多久？這些全球玩家的推進速度都一樣嗎？還是這是一個跨多年的機會？

Well, I think it's a very long opportunity. If you look at what happened in 40 gig, the transition at 40 gig, that started several years ago and is now finally winding down. And I think what's different this time is that in the 40 gig transition, only a few of the hyperscale data center guys were buying directly from the optics suppliers; whereas today, the 100 gig, all of them are.

我認為這會是一個非常長期的機會。如果你看 40G 的情況，40G 的轉換是幾年前開始的，現在才終於接近尾聲。而我認為這次不同的是，在 40G 轉換期間，只有少數超大型資料中心客戶會直接向光學供應商採購；但在今天的 100G，所有這些客戶都在直接採購。

And so I'd say that North America will go first; China is probably not until 2017, although we are working with the major hyperscale guys in China as well as the -- all of the suppliers -- or all the hyperscale guys here. There are some that are leading the way. The ones that we got the order from, I'd say would be kind of trailblazing the way. And I'd say that, by the end of this calendar year, all of the major North America Web 2.0 customers will have made that transition in new greenfield data centers that they are building.

因此我會說北美會先行；中國可能要到 2017 年才會開始，儘管我們也正與中國主要的超大型客戶合作，同時也與——所有供應商——或是這裡所有的超大型客戶合作。其中有一些正在領先推進。我們拿到訂單的那些客戶，我會說算是走在最前面、開路的。而我會說，到今年日曆年度年底，北美所有主要的 Web 2.0 客戶都會在他們正在建置的新綠地資料中心中完成這項轉換。

And I'd say that means that every new data center that they build, and there's plans to build many, many new hyperscale data centers over the next several years, will take advantage of the 100 gig QSFP28. And those come in different forms and functions, from a 100 to 300 SR product to 500 meter PSM4, which we are supplying and have design wins there to hyperscale guys, to the CWDM, which is really [2 kilometer] reaches. So we are seeing a lot of interest from the Chinese guys as well as the North American guys, but I would say again that the Chinese Web 2.0 probably doesn't kick in until 2017.

我會說，這意味著他們每建一座新的資料中心——而未來幾年計畫要建很多很多新的超大型資料中心——都會採用 100G QSFP28。而這些產品有不同的形式與功能，從 100 到 300 的 SR 產品、到 500 公尺的 PSM4（我們正在供應，且已在超大型客戶那裡取得設計導入），再到 CWDM，也就是大約 [2 公里] 的傳輸距離。所以我們看到中國客戶與北美客戶都有很高的興趣，但我仍會說，中國的 Web 2.0 可能要到 2017 年才會真正啟動。

Thank you, that was very helpful. And then I guess with the component supply constrained for you, how is that impacting your cost and pricing? And does that continue? Or are your suppliers adding capacity like you are?

謝謝，這非常有幫助。另外我想問，對你們而言元件供應受限，這對成本與定價造成什麼影響？這種情況會持續嗎？還是你們的供應商也像你們一樣在擴充產能？

Well, our suppliers are certainly adding capacity. We expect price reductions with our suppliers much like our customers expect it with us. And so suppliers that treat us like a partner, and are more interested in our long-term business than making an extra dollar next quarter, are the ones we're going to stick with. And so we've seen the kind of cost reductions that we would expect in normal times, even when there is a supply constraint.

我們的供應商當然正在擴充產能。我們也預期供應商會降價，就像我們的客戶也期待我們降價一樣。因此，那些把我們當作合作夥伴、並且更重視我們長期業務而不是為了下季多賺一美元的供應商，才是我們會持續合作的對象。所以即使在供應受限的情況下，我們仍看到符合正常情況下預期的成本下降幅度。

So I don't think there's any different dynamic from that perspective on our cost. So we are continuing to try to drive cost down, not only from our suppliers but also in productivity and yield within our factories and our CM.

因此我不認為從成本角度來看有任何不同的動態。所以我們持續努力降低成本，不僅透過供應商，也透過我們工廠與我們的代工廠（CM）在生產力與良率上的提升。

Thank you.

謝謝。

Meta Marshall, Morgan Stanley.

Meta Marshall，摩根士丹利。

Just two questions. The first is you noted that optical communications gross margins were down as Telecom pricing negotiations went into effect. I just wanted to make sure that -- or get feedback as to gross margin trends in Datacom throughout the quarter.

兩個問題。第一個是，你提到隨著電信定價談判生效，光通訊的毛利率下滑。我想確認一下——或請你回饋一下——本季 Datacom 的毛利率趨勢如何。

And then second, last quarter, you had mentioned submarine -- an impact from submarine business being lower, and you expected that to come back in the second half of the calendar year. I just wanted to make sure that that timing still stood. Thanks.

第二個是，上季你們提到海底（submarine）業務較低帶來影響，並預期在日曆年度下半年回升。我想確認這個時程是否仍然成立。謝謝。

Why don't you go ahead and take that?

你要不要先來回答這個？

So, in terms of gross margin, so the optical -- opcomm gross margins were down roughly 90 basis points quarter-to-quarter. And as we had articulated, most of that was due to price erosion during the quarter, because a lot of these contracts had been set in terms of pricing over the past several quarters.

就毛利率而言，光通訊（opcomm）毛利率季對季大約下降了 90 個基點。如同我們先前所說，其中大部分是因為本季的價格侵蝕，因為許多合約的定價是在過去幾季就已經訂定。

In terms of the other question you had about how does that reflect with Datacom? So Datacom revenue grew 30% quarter-to-quarter. A lot of that growth came from 100G and newer products, so those gross margins are typically going to be a lot better because they are newer products. But in terms of being able to offset typical price erosion we've had all across the board of what is sufficient enough to do so.

至於你另一個問題，這在 Datacom 上如何反映？Datacom 營收季對季成長 30%。這些成長多數來自 100G 與較新的產品，因此這些產品的毛利率通常會好很多，因為它們是新產品。但就能否抵消我們在各產品線普遍面臨的典型價格侵蝕而言，整體而言其幅度足以做到抵消。

Going forward, our objective again is to continuously lead the market with newer and newer products. Okay. The faster speed products that are getting to market quicker, which typically would give us better gross margin. So it's our idea and our objectives to be able to accrete or enhance our optical gross margins. We mentioned the Bloomfield fab consolidations, we are a little bit with that because of the current demand environment. But that's going to add roughly 100 basis points to our overall corporate gross margins going forward.

展望未來，我們的目標仍然是以更新、更具創新的產品持續引領市場。好的。更高速的產品能更快推向市場，通常也會帶來更好的毛利率。因此，我們的想法與目標是能夠增厚或提升我們的光學毛利率。我們提到 Bloomfield 廠的整併，在目前的需求環境下，我們在這方面的進度稍微放慢了一些。但展望未來，這將使我們整體公司毛利率大約增加 100 個基點。

And as to your question on submarine, we actually saw a submarine uptick in the March quarter. And the submarine cable business is very lumpy, in that when a consortia decides to build the cable and get the funding, they want to go relatively quickly. And so it's lumpy. I'd say this quarter, probably submarine is down from last quarter, but I expect that the second half of the year will rebound back to the kind of levels we saw towards the end of 2015.

至於你關於海底（電纜）的問題，我們其實在 3 月季度看到海底業務有所回升。而海底電纜業務的波動性很大，因為當某個財團決定建設電纜並取得資金後，他們通常希望相對快速地推進。因此它是呈現跳躍式的。我會說本季海底業務可能較上季下滑，但我預期今年下半年會反彈，回到我們在 2015 年底看到的那種水準。

Great. Thank you.

很好。謝謝。

Sure.

不客氣。

Alex Henderson, Needham.

Needham 的 Alex Henderson。

Two questions. The delay in the Intel nightbridge chip, which is apparently causing some slowdown in timing of deployment in the supercomputer market, does that have any impact on you guys at all? Are you selling into that? Or is that more Mellanox type InfiniBand stuff?

兩個問題。Intel Nightbridge 晶片的延遲，顯然正在造成超級電腦市場部署時程的一些放緩，這對你們有任何影響嗎？你們有供貨到那裡嗎？還是那比較像是 Mellanox 類型的 InfiniBand 相關？

Yes, Alex, this is Chris. So we don't really sell a lot to the supercomputer market, so we are not impacted by that situation.

是的，Alex，我是 Chris。我們其實沒有大量銷售到超級電腦市場，所以不會受到那個情況影響。

Great. Second question, if you could please just give us a real clear, crisp estimate of how much revenue was due to the 14 weeks to apples and oranges into the sequential upcoming quarter? And similarly what you think the net was on the OpEx cost for the same reason? Could you give us just -- this is the best guess of what the revenue net was and not the best guess of the cost item.

很好。第二個問題，能否請你們給我們一個非常清楚、精準的估計：由於 14 週（週數不同）造成的營收影響是多少，用來和接下來的季度做序列比較時避免「蘋果比橘子」？同樣地，基於相同原因，你們認為營業費用（OpEx）的淨影響是多少？能否給我們——也就是：你們對營收淨影響的最佳估計，以及對成本項目的最佳估計。

Yes, I'll take the revenue one and let Aaron take the OpEx one. I'd say that on the revenue front, I would say that you could kind of look at last quarter as a 13.5 real quarter -- 13.5 week real quarter, in that we probably lost half of the production of one week. Because all of our production is not in China, some of it is in Thailand.

好的，我先回答營收的部分，然後讓 Aaron 回答 OpEx 的部分。就營收而言，我會說你可以把上季視為一個 13.5 週的實際季度——13.5 週的實際季度，因為我們大概損失了一週產能的一半。因為我們的生產並非全部在中國，有一部分在泰國。

So I would say that, given that we were hand-to-mouth throughout the quarter, we didn't have the ability to build up inventory and ship it during that timeframe. So we lost probably half a week. So you can say it's a 3% increase on a normal quarter if you want to try to normalize what we are looking forward to in the June quarter.

所以我會說，鑑於我們整個季度都處於「手到口」（供應緊繃、即產即用）的狀態，我們沒有能力建立庫存並在那段期間出貨。因此我們大概損失了半週。所以如果你想把它常態化來看我們在 6 月季度的展望，你可以說相較於正常季度約增加 3%。

Now are you baking in both the Golden Week impact and the extra week?

那你們的假設有同時納入黃金週的影響以及多出來的一週嗎？

Yes, I'd say that we are really not impacted from a supply standpoint from Golden Week, as we don't have any production in Japan. From a demand standpoint, the Japanese customers probably slow down a little bit, but we've got plenty of demand to make up for that. So I'd say that we're really not impacted by Golden Week this quarter.

是的，我會說從供應面來看，我們其實不受黃金週影響，因為我們在日本沒有任何生產。從需求面來看，日本客戶可能會稍微放慢一些，但我們有充足的需求可以彌補。所以我會說本季我們確實不太受黃金週影響。

On the cost side?

那成本方面呢？

Hey, Alex. On your question on --

嗨，Alex。關於你對——的問題

Did that answer your question, Alex?

這有回答到你的問題嗎，Alex？

I think so, yes.

我想有，是的。

Okay.

好的。

Okay. And then to follow up on your question on OpEx, so the OpEx for the extra week was almost $2 million for the quarter.

好的。接著回覆你關於 OpEx 的追問，多出來那一週對本季的 OpEx 影響接近 200 萬美元。

Great. Thanks.

很好。謝謝。

Going into Q4, that will drop off. And then we have some other puts and takes.

進入第四季後，這部分會消失。然後我們還有一些其他的增減因素。

Thank you.

謝謝。

Thank you. And at this time, I'm showing there are no further participants in the queue. I would like to turn the call over to Mr. Alan Lowe for any closing remarks.

謝謝。此時，我看到隊列中已沒有其他與會者。我想把電話會議交回給 Alan Lowe 先生，請他做任何結語。

Great. Thank you, operator. You know, the Lumentum team is excited to support our customers, grow our business, and create value for our shareholders. I want to thank our employees for all their hard work that has put us in this excellent position in the market. We see strong market demand from our customers.

很好。謝謝你，接線員。你知道，Lumentum 團隊很期待能支持我們的客戶、成長我們的業務，並為股東創造價值。我要感謝我們的員工，他們的辛勤工作讓我們在市場上處於這個極佳的位置。我們看到來自客戶的強勁市場需求。

Our new products, including TrueFlex ROADMs and 100G Datacom transceivers are winning in the market, and position us well as we look forward. I believe we are in the early stages of a worldwide bandwidth expansion, making the future bright at Lumentum.

我們的新產品，包括 TrueFlex ROADM 以及 100G 數據通訊收發器，正在市場上取得勝利，並在我們展望未來時讓我們處於有利位置。我相信我們正處於全球頻寬擴張的早期階段，讓 Lumentum 的未來一片光明。

We will be discussing our business at several Investor Relations events in the coming weeks. These events are listed on our website in the Investor Relations section.

在接下來幾週，我們將在數場投資人關係活動中討論我們的業務。這些活動已列在我們網站的「投資人關係」專區。

This concludes our call for today. We would like to thank everyone for attending, and we look forward to talking to you again in another three months.

今天的電話會議到此結束。我們感謝各位的參與，也期待三個月後再次與各位交流。

Ladies and gentlemen, thank you for your participation on today's conference. This concludes your program. You may now disconnect. Everyone have a great day.

各位女士、先生，感謝您參與今天的電話會議。本次會議到此結束。您現在可以掛線。祝各位今天愉快。