Lumentum Holdings Inc. (LITE) 2017 Q2 法說會逐字稿

Good day ladies and gentlemen and welcome to the Lumentum fiscal second-quarter 2017 results conference call.

各位女士、先生，大家好，歡迎參加 Lumentum 2017 會計年度第二季財報電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this conference call is being recorded. I would now like to turn the conference over to 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。現在我想把會議交給策略與企業發展副總裁 Chris Coldren。先生，您可以開始了。

Thank you, Takea. Welcome to Lumentum's second-quarter FY17 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，Takea。歡迎參加 Lumentum 2017 會計年度第二季財報電話會議。我是策略與企業發展副總裁 Chris Coldren。今天與我一同出席的還有總裁兼執行長 Alan Lowe，以及財務長 Aaron Tachibana。

This will include forward-looking statements including statements regarding the markets in which we operate, trends and expectations for products and technology, as well as purchasing trends; Lumentum's expected financial performance expenses and position in our markets. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations.

本次通話將包含前瞻性陳述，包括關於我們所營運市場、產品與技術的趨勢與預期，以及採購趨勢；以及 Lumentum 預期的財務表現、費用與在我們市場中的地位等陳述。這些陳述受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 10-Q filing for our fiscal second quarter ended December 31, 2016 that will be filed later today. 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.

我們鼓勵各位查閱我們近期向美國證券交易委員會（SEC）提交的文件，特別是我們截至 2016 年 12 月 31 日止之 2017 會計年度第二季 10-Q 申報文件中所描述的風險因素，該文件將於今日稍晚提交。我們在本次通話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的義務。

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. Our press release with our second quarter FY17 results is available on our website, www.Lumentum.com under the investor 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更優者。我們的 2017 會計年度第二季財報新聞稿已公布於我們網站 www.Lumentum.com 的投資人專區，並包含關於我們非 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 our latest SEC filings which we encourage you to review and supplementary slides related to today's earnings release. Finally, a recording of today's call will be available by 7.30 PM Pacific time this evening on our website. Now I would like to turn the call over to Alan for his comments and second-quarter business highlights.

我們的網站也提供最新的 SEC 申報文件（我們鼓勵各位查閱），以及與今日財報發布相關的補充投影片。最後，今日通話的錄音將於今晚太平洋時間 7:30 前後在我們網站上提供。現在我想把電話交給 Alan，請他發表評論並分享第二季的業務重點。

Thank you, Chris. It is an exciting time at Lumentum. Our strategy to invest in growing markets, develop the best products and technologies, and foster the closest relationship with market leading customers is succeeding. I am pleased to announce that we have achieved both record revenue and margin once again.

謝謝你，Chris。對 Lumentum 而言，這是一個令人振奮的時刻。我們投資於成長市場、開發最佳產品與技術，並與市場領先客戶建立最緊密關係的策略正在奏效。我很高興宣布，我們再次達成營收與毛利率雙雙創新高。

Strengthened demand for our 100G Datacom, pump laser, and submarine products drove our second-quarter revenue to $265 million up 21% relative to a year ago. Optimal communications revenue grew 8% sequentially, and 27% year on year based on continued strength in telecom and Datacom markets. Datacom growth was notably strong increasing 54% sequentially and 95% year on year. Despite the increased output for 100G datacom products, our customers wanted more.

我們的 100G 數據通訊（Datacom）、泵浦雷射與海底產品需求增強，帶動第二季營收達 2.65 億美元，較去年同期成長 21%。光通訊（Optical communications）營收季增 8%、年增 27%，反映電信與數據通訊市場持續強勁。數據通訊成長尤為顯著，季增 54%、年增 95%。儘管我們提高了 100G 數據通訊產品的出貨量，客戶仍希望我們供應更多。

Both growth and operating margins expanded significantly to record levels as our revenue mix continued to be richer in newer higher-margin products. At Lumentum, we are focused on using our photonics technologies to accelerate the speed and scale of cloud, networking, advanced manufacturing, and next generation 3-D sensing applications. The rapid growth in cloud computing, streaming video, mobile, and other high-bandwidth applications is placing enormous demands on networks in terms of capacity, productivity, and efficiency.

隨著營收組合持續偏向較新且毛利較高的產品，成長與營業利潤率均大幅擴張至創紀錄水準。在 Lumentum，我們專注於運用光子技術，加速雲端、網路、先進製造，以及下一代 3D 感測應用的速度與規模。雲端運算、串流影音、行動通訊及其他高頻寬應用的快速成長，正對網路在容量、生產力與效率方面提出龐大需求。

These demands can only be met with advanced optical communication technologies including 100G and higher data transmission and advanced ROADM architectures. Hyperscale data center operators are starting major 100G upgrades.

這些需求只能透過先進的光通訊技術來滿足，包括 100G 及更高速的資料傳輸，以及先進的 ROADM 架構。超大規模資料中心營運商正開始進行大規模的 100G 升級。

Advanced manufacturing techniques including the cutting and welding of metals, precision, machining of semiconductor wafers, printed circuit boards, and glass and plastic displays are driving further reliance on lasers. Leaders in next-generation consumer electronics, virtual and augmented reality as well as the automobile industry are looking to laser-based 3-D sensing to enhance capabilities and enable new applications. Lumentum is a leader in the photonics technologies that are critical enablers of all these applications. And our investments in new products position us well for these future trends.

先進製造技術（包括金屬切割與焊接、半導體晶圓的精密加工、印刷電路板，以及玻璃與塑膠顯示器的加工）正推動對雷射的進一步依賴。下一代消費性電子、虛擬與擴增實境，以及汽車產業的領導者，正尋求以雷射為基礎的 3D 感測來提升能力並開啟新應用。Lumentum 在這些應用所需的關鍵光子技術方面居於領先地位，而我們對新產品的投資也使我們能在未來趨勢中占得先機。

On our last call, we highlighted a supplier quality issue that affected our ability to meet customer demand for our 100G Datacom products. During the quarter we resumed volume shipments of these products. Utilizing capacity added over the prior quarters we grew our 100G Datacom revenue 124% sequentially and over 500% year over year to $52 million. Lower speed Datacom revenues continued to decline and now represent only 17% of Datacom revenue.

在上次電話會議中，我們提到一項供應商品質問題，影響了我們滿足 100G 數據通訊產品客戶需求的能力。本季我們已恢復這些產品的量產出貨。運用前幾季新增的產能，我們的 100G 數據通訊營收季增 124%，年增超過 500%，達到 5,200 萬美元。較低速的數據通訊營收持續下滑，目前僅占數據通訊營收的 17%。

Due to capacity limitations second-quarter datacom revenue was primarily from network equipment manufacturers. Looking ahead, we expect revenue from hyperscale data center operators to increase as we bring more 100G transceiver manufacturing capacity online.

由於產能限制，第二季數據通訊營收主要來自網路設備製造商。展望未來，隨著我們將更多 100G 收發器製造產能上線，我們預期來自超大規模資料中心營運商的營收將增加。

Telecom revenue declined 3% quarter-on-quarter. This decline had two primary components. First, we had a multi million dollar drop in older lower speed telecom product lines that are end of life. Aggregate quarterly revenue from these end-of-life in product lines are less than $1 million. Second, in the first quarter we added significant capacity for 100G coherent components and were able to satisfy some pent-up customer demand. Second-quarter revenue from these coherent components declined from this level but were still up more than 13% compared to two quarters ago.

電信營收較上季下滑 3%。此下滑主要有兩個因素。第一，我們在較舊、較低速且已進入產品生命週期末期（end of life）的電信產品線出現數百萬美元的下滑；這些已停產產品線的季度合計營收已低於 100 萬美元。第二，在第一季我們為 100G 相干（coherent）元件新增了大量產能，得以滿足部分累積的客戶需求；第二季這些相干元件的營收自該水準回落，但相較於兩季前仍成長超過 13%。

Coming off the strong first-quarter, second-quarter pump laser and submarine revenues were at record levels based on continued strong demand worldwide. Pump lasers and the optical amplifiers they pump, are key elements of all network -- new network deployments.

在第一季表現強勁之後，第二季泵浦雷射與海底產品營收在全球持續強勁需求帶動下，達到創紀錄水準。泵浦雷射及其所驅動的光放大器，是所有網路（包含新網路部署）的關鍵元件。

In addition to lighting new fiber, pump demand is also driven by strong global demand for ROADMs which generally require optical amplification when deployed. New submarine cables are being built and lit up around the world. In addition to traditional communication service providers, cloud operators are increasingly driving new deployments of submarine cables.

除了點亮新光纖之外，泵浦需求也受到全球對 ROADM 的強勁需求所帶動，因為 ROADM 部署時通常需要光放大。全球各地正在建置並點亮新的海底電纜。除傳統通訊服務供應商外，雲端業者也日益成為推動海底電纜新部署的重要力量。

Demand from ROADMs is strong. Our overall ROADM unit volume increased significantly during the second quarter driven by strong demand for WSS modules worldwide and in particular from our Chinese customers. Blade level ROADM shipments were down. Blades have a higher average selling price as they integrate WSS modules with other optical components including pumps.

ROADM 的需求強勁。我們整體 ROADM 出貨單位量在第二季顯著增加，主要由全球對 WSS 模組的強勁需求所驅動，尤其來自中國客戶。刀鋒（blade）層級的 ROADM 出貨則下降。由於刀鋒整合了 WSS 模組與其他光學元件（包括泵浦），其平均售價較高。

The lower mix of blades resulted in a 10% decline of ROADM revenue despite higher overall ROADM unit volume. This mix shift also freed up pump capacity and enabled increased external pump lasers and optical amplifier revenues. Customers buying WSS modules generally need to purchase pump lasers for optical amplifiers to make their own blades. Pump lasers are still on allocation.

由於刀鋒占比降低，儘管整體 ROADM 出貨單位量增加，ROADM 營收仍下滑 10%。此產品組合轉變也釋放了泵浦產能，並使外部泵浦雷射與光放大器營收得以增加。購買 WSS 模組的客戶通常需要另行購買用於光放大器的泵浦雷射，以製作其自有刀鋒。泵浦雷射仍處於配給（allocation）狀態。

We have been and continue to be capacity constrained on pump lasers even with significant capacity additions over the past year. We are still in the early stages of North American metro deployments. We expect we will see a shift back to more blades in our product mix as our customers begin new cities.

即使過去一年我們大幅擴增產能，泵浦雷射仍然、且持續受到產能限制。我們在北美都會網（metro）部署仍處於早期階段。隨著客戶開始進入新城市，我們預期產品組合將回到較多刀鋒的配置。

Also of note on ROADMs, during the quarter, we received orders from Chinese customers for deployments in China. We are encouraged by these initial orders and expect China ROADM deployments to pick up materially in calendar 2017.

另外值得一提的是，在本季我們收到中國客戶針對中國境內部署的訂單。我們對這些初期訂單感到鼓舞，並預期 2017 年曆年中國的 ROADM 部署將明顯加速。

Looking to the third quarter, we expect seasonal factors will be more at play this year than they were last year which was the start of the strong China ramp. Overall demand remains healthy, but sequential growth will likely be insufficient to overcome normal seasonality. Industry capacity remains very tight on ROADMs and pump lasers and demand for these products remains very strong. Continued strong demand for pump lasers is encouraging as pump laser demand is an often a leading indicator of new network deployments.

展望第三季，我們預期今年的季節性因素將比去年更為明顯；去年正值中國強勁拉升的起點。整體需求仍然健康，但季增幅度可能不足以抵消正常季節性影響。ROADM 與泵浦雷射的產業產能仍非常吃緊，這些產品的需求依然非常強勁。泵浦雷射需求持續強勁令人鼓舞，因為泵浦雷射需求往往是新網路部署的領先指標。

Recent discussions with customers and network operators in China continue to reinforce our expectation that calendar year 2017 will be a strong growth year again in China. Chinese operators continue to add capacity, light new fiber requiring pump lasers and began large scale deployments of ROADM nodes. We believe there will be a significant growth for Lumentum in China in calendar 2017.

近期與中國客戶及網路營運商的討論，持續強化我們的預期：2017 年曆年將再次成為中國強勁成長的一年。中國營運商持續擴充容量、點亮需要泵浦雷射的新光纖，並開始大規模部署 ROADM 節點。我們相信 Lumentum 在 2017 年曆年於中國將有顯著成長。

Turning to commercial lasers, as expected, revenue declined in the second quarter. We saw a 29% sequential decline driven by a fiber laser product transition and the second quarter being seasonally weaker in the micro materials processing market. Looking to the third quarter, we expect lasers from micro-machines to rebound to levels similar to a year ago.

談到商用雷射，如預期所見，第二季營收下滑。我們看到營收較前一季下滑29%，主要是由於光纖雷射產品轉換，以及第二季在微材料加工市場季節性較弱所致。展望第三季，我們預期微加工設備用雷射將回升至與一年前相近的水準。

We expect modest growth from our second-quarter levels in our kilowatt fiber lasers. Market forecast for semiconductor capital equipment growth are encouraging as this market drives our micro-machining laser business.

我們預期千瓦級光纖雷射將較第二季水準呈現溫和成長。半導體資本設備成長的市場預測令人鼓舞，因為該市場帶動我們的微加工雷射業務。

Industrial and consumer revenue which consists primarily of revenue from laser diodes we supply to customers building their own fiber lasers and to 3-D sensing customers was approximately flat sequentially. However, we had an exciting development during the second quarter. While not significant to second quarter revenue or our third-quarter guidance, we shipped our first revenue into what we believe to be a high-volume mobile device application. We are very encouraged by the progress and key milestones achieved to date on this application.

工業與消費性營收（主要由我們供應給自行打造光纖雷射之客戶的雷射二極體，以及供應給3D感測客戶的營收所構成）較前一季大致持平。不過，我們在第二季有一項令人振奮的進展。雖然對第二季營收或我們第三季指引並不顯著，我們已在我們認為將是高出貨量的行動裝置應用中，出貨了第一筆帶來營收的產品。我們對此應用迄今的進展與已達成的關鍵里程碑感到非常鼓舞。

We continue to have strong engagement from customers including those in the consumer electronics and automotive markets. We expect 3-D sensing to be a significant growth opportunity over the coming years.

我們持續獲得客戶的高度投入與合作，其中包括消費性電子與汽車市場的客戶。我們預期3D感測在未來幾年將是重要的成長機會。

Last month, we were at the consumer electronics show in Las Vegas meeting with the customers, and the level of interest in 3-D sensing was overwhelming. Demand continues for growth -- to grow for bandwidth and speed across the world's data centers and communication networks. Hyperscale data centers are starting to transition to 100G, and our product portfolio and capacity additions position us well for this transition. ROADM based Metro network deployments are just beginning globally with China taking -- notably taking its first step in this direction.

上個月，我們在拉斯維加斯的消費性電子展與客戶會面，市場對3D感測的興趣之高令人震撼。全球各地資料中心與通訊網路對頻寬與速度提升的需求仍在持續成長。超大規模資料中心正開始轉向100G，而我們的產品組合與產能擴充使我們在這項轉換中具備良好定位。以ROADM為基礎的都會網路部署才剛在全球起步，其中中國尤其已在此方向邁出第一步。

We believe that we have the best products available today as well as new product pipeline that will further our leadership position in the ROADMs market. Manufacturers around the world are increasingly using advanced laser based techniques. Global consumer electronic leaders look to laser based 3-D sensing capabilities for next-generation applications.

我們相信，我們不僅擁有目前市面上最好的產品，也有新的產品研發管線，將進一步鞏固我們在ROADM市場的領導地位。全球製造商正日益採用先進的雷射技術。全球消費性電子領導廠商也正尋求以雷射為基礎的3D感測能力，用於下一代應用。

We believe we are well positioned with our new products, customer relationships, design win and our ability to execute. It is an exciting time for us. I will now hand the call over to Aaron for more details on our financial results and our guidance for the third quarter of FY17.

我們相信，憑藉新產品、客戶關係、設計導入（design win）以及我們的執行能力，我們已具備良好定位。對我們而言，這是一個令人振奮的時刻。接下來我將把電話交給Aaron，請他更詳細說明我們的財務結果以及FY17第三季的指引。

Thank you, Alan. The second quarter was $265 million and exceeded the midpoint of guidance. Second-quarter revenue increased 3% sequentially and 21% compared with the same period last year. GAAP gross margin was 32.8% and increased 110 basis points quarter-on-quarter. GAAP operating margin was 5%, and GAAP diluted net income per share was $0.19. Our second-quarter non-GAAP gross margin was 36.9% and increased 270 basis points relative to the prior quarter.

謝謝你，Alan。第二季營收為2.65億美元，超過指引中點。第二季營收較前一季成長3%，較去年同期成長21%。GAAP毛利率為32.8%，較前一季提升110個基點。GAAP營業利益率為5%，GAAP稀釋後每股淨利為0.19美元。第二季非GAAP毛利率為36.9%，較前一季提升270個基點。

The sequential increase was driven by a 410 basis point improvement in optical communications gross margin. Non-GAAP operating margin for the second quarter was a record 14.7% and exceeded the upper end of our guidance range. Our operating margin expanded 200 basis points sequentially in gross margin improvement. Non-GAAP net income was $35.9 million and up 88% year over year.

這項季增主要由光通訊毛利率改善410個基點所帶動。第二季非GAAP營業利益率創下14.7%的新高，並超過我們指引區間上緣。隨著毛利率改善，我們的營業利益率較前一季擴張200個基點。非GAAP淨利為3,590萬美元，年增88%。

Non-GAAP earnings-per-share was $0.57 based on a fully diluted share count of $62.7 million and also exceeded the upper end of our guidance. These earnings include $400,000 and other expense and $2.7 million of tax expense.

非GAAP每股盈餘為0.57美元，係以完全稀釋後股數6,270萬股計算，亦超過我們指引上緣。此獲利包含40萬美元的其他費用，以及270萬美元的所得稅費用。

Now for some additional details. Optical communications revenue was $236.6 million an increase of 8% over the prior quarter driven by a $23.9 million or 54% increase in Datacom revenue which was partially offset by a $5.5 million or 3% decrease in telecom revenue and a $100,000 or 1% decrease in industrial and consumer revenue. Optical communications gross margin at 36.6% increased 410 basis points sequentially from higher volume and the richer mix of new products including 100G datacom and WSS modules.

接著補充一些細節。光通訊營收為2.366億美元，較前一季成長8%，主要由Datacom營收增加2,390萬美元（或54%）所帶動，但部分被電信營收減少550萬美元（或3%）以及工業與消費性營收減少10萬美元（或1%）所抵銷。光通訊毛利率為36.6%，較前一季提升410個基點，主要來自出貨量增加，以及新產品（包括100G datacom與WSS模組）占比提高所帶來的較佳產品組合。

Commercial lasers revenue was $28.4 million a decrease of $11.4 million quarter-on-quarter. Going into the second quarter, we did expect a decline in commercial lasers revenue from normal seasonality due to capital equipment spending within the semiconductor industry as well as a major customer product transition.

商用雷射營收為2,840萬美元，較前一季減少1,140萬美元。進入第二季前，我們確實預期商用雷射營收會因正常季節性而下滑，原因包括半導體產業資本設備支出，以及一位主要客戶的產品轉換。

Commercial lasers gross margin at 39.4% decreased 380 basis points sequentially. Prime gross margin was due to the impact of lower volume. Operating expenses totaled $58.9 million or 22.2% of revenue compared with last quarter of $55.5 million or 21.5% of revenue. R&D expense was $35.4 million, and SG&A expense was $23.5 million.

商用雷射毛利率為39.4%，較前一季下降380個基點。毛利率下降主要是受到出貨量較低的影響。營業費用合計為5,890萬美元，占營收22.2%，相較上季為5,550萬美元，占營收21.5%。研發費用為3,540萬美元，銷售、一般及行政（SG&A）費用為2,350萬美元。

R&D spending grew sequentially due in part to increasing investments in 3-D sensing. Income tax expense was $2.7 million for the quarter and equated to an effective non-GAAP tax rate of 7%. As we go forward we continue to expect the non-GAAP tax rate to be in the range of 7% to 10%.

研發支出較前一季增加，部分原因是我們加大對3D感測的投資。本季所得稅費用為270萬美元，折合非GAAP有效稅率為7%。展望未來，我們仍預期非GAAP稅率將落在7%至10%的區間。

Capital equipment additions were approximately $35 million in the second quarter. In addition to expanding capacity for telecom and Datacom products, we are also adding equipment to prepare for emerging 3-D sensing applications. Our cash balance was $155.9 million at the end of the second quarter, a decrease of $10.9 million sequentially, and we remain debt-free. The decline in cash was a result of elevated capacity expansion and the timing of AR collections from customers.

第二季資本設備新增投資約3,500萬美元。除了擴充電信與Datacom產品產能外，我們也在添購設備，以因應新興的3D感測應用。我們在第二季末的現金餘額為1.559億美元，較前一季減少1,090萬美元，且我們仍維持零負債。現金下降主要是因產能擴充支出偏高，以及客戶應收帳款回收時點的影響。

Now on to our guidance for the third quarter, FY17, noting again that all projections are on a non-GAAP basis. We project net revenue for the third quarter to be in the range of $250 million to $265 million with operating margin in the range of 12.5% to 14% and earnings-per-share to be in the range of $0.46 to $0.54.

接著是FY17第三季指引，再次提醒所有預測皆以非GAAP基礎呈現。我們預估第三季淨營收將介於2.50億至2.65億美元之間，營業利益率介於12.5%至14%之間，每股盈餘介於0.46至0.54美元之間。

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

現在，我把電話交回給Chris，開始問答環節。

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

謝謝你，Aaron。我想請大家將討論限制在一個問題與一個追問。Takea，請開始問答環節。

(Operator Instructions)

（接線員指示）

James Kisner, Jefferies.

James Kisner，Jefferies。

Thanks very much. For this, I want to ask a housekeeping question, you spoke about end of life impacting your telecom optical communications. Can you comment or quantify how much that was? And separately, too, Datacom, can you talk about the mix of CFP2, QSFP28 and 40 gig within that as well? And perhaps also maybe parse how those different products drove the nearly 50% increase quarter over quarter. Thanks.

非常感謝。我想先問一個例行性問題：你提到產品生命週期結束（end of life）對你們的電信光通訊造成影響。你能否評論或量化影響有多大？另外，關於Datacom，你能談談其中CFP2、QSFP28與40G的產品組合占比嗎？也許也能拆解一下，這些不同產品如何推動營收季增將近50%。謝謝。

Yes. So the older products that declined were kind of in the life on our 40 gig coherent modules. And we had a 100 gig coherent line cards. Both of those are coming to end-of-life and are a very small revenue going forward.

好的。下滑的舊產品主要是我們的40G相干模組，以及100G相干線卡。這兩項都正走向產品生命週期末期，未來的營收占比會非常小。

As far as the mix of 100 gig, datacom the majority of the growth came from CFP2 LR4, but we did see growth in our QSFP28 and saw initial revenue shipments of our LR4 QSFP28. But most of the QSFP28 was CWDM4.

至於100G的Datacom組合，成長的大部分來自CFP2 LR4；我們也看到QSFP28的成長，並且開始有LR4 QSFP28的初期營收出貨。不過，QSFP28的大多數是CWDM4。

Just to follow up on that. It helped, but can you try to quantify the end of life products in the quarter? It's a pretty big drop sequentially. I'm just trying to understand how big of a factor that was.

再追問一下。這確實有幫助，但你能試著量化本季生命週期結束產品的影響嗎？季減幅度相當大，我只是想了解這個因素的影響有多大。

Probably a couple million dollars or so on a quarterly basis.

大概每季幾百萬美元左右。

And just last one, this $7 million help in gross margin from other charges, I guess you say related to nonrecurring activities. It's a pretty big number. I'm just wondering if you could elaborate on what that was and whether or not we should to see that -- expect that to hit again in any prior -- any coming quarters. Thanks. I'll pass it.

最後一個問題：毛利率因「其他費用」而有700萬美元的助益，你們說這與一次性活動（nonrecurring activities）相關。這是個相當大的數字。我想請你們進一步說明那是什麼，以及我們是否應該預期在之後的季度還會再次出現。謝謝，我先到這裡。

I'm sorry, can you elaborate? We didn't really say anything about a lot of nonrecurring charges.

抱歉，你能再詳細說明一下嗎？我們其實並沒有特別談到很多非經常性費用。

I saw it looks to me in non-GAAP gross margin you had about a $7 million help margin, you had a $7 million help. And it says from other charges, related to nonrecurring activities. Maybe I'm reading that wrong, we could take it off-line; but it looks to me you had some help in gross margin there from that.

我看到在非 GAAP 毛利率裡，看起來你們大概有約 700 萬美元的毛利率助益，有 700 萬美元的助益。而且上面寫的是來自其他費用，與非經常性活動相關。也許是我解讀錯了，我們可以私下再談；但就我看起來，你們的毛利率似乎因此得到一些助益。

No, we did have -- so in the past if you go back to last quarter as well as this quarter, we did have some charges related to some supplier component issues. And so it adjusts those out, because we do have the expectation we're going to get recovery from our suppliers as well.

沒有，我們確實有——所以如果你回頭看上一季以及這一季，我們確實有一些與供應商零組件問題相關的費用。因此在調整時會把那些剔除，因為我們也預期會從供應商那邊取得補償。

Okay. Does your guidance for gross margin assume any more of that help? Because that was 270 basis points in Q4?

了解。那你們對毛利率的指引是否假設還會有更多這樣的助益？因為那在第四季是 270 個基點？

Just to be clear that's not really help. I think the non-GAAP numbers we presented reflect the ongoing business and mix that we've had in the quarter. Going forward, those quality issues are behind us.

先澄清一下，那其實不算助益。我認為我們呈現的非 GAAP 數字反映的是本季持續性業務與產品組合的狀況。往後看，那些品質問題已經過去了。

And we don't expect to see any of those kind of detriment to our GAAP numbers relative to our non-GAAP numbers, if that make sense.

而且我們不預期會再看到 GAAP 數字相對於非 GAAP 數字出現那種不利影響，如果這樣說得通的話。

That does help. Thank you very much.

這確實有幫助。非常感謝。

Michael Genovese, MKM Partners.

Michael Genovese，MKM Partners。

Thanks a lot. On the telecom being sequentially down, I understand the end-of-life factor. You said there were two factors, and you explained the second one, but I really didn't follow it. Could you go over that again of why the telecom revenue was sequentially down?

非常感謝。關於電信業務的營收季對季下滑，我理解產品生命週期結束（end-of-life）的因素。你說有兩個因素，你解釋了第二個，但我其實沒有完全跟上。你能再說一次為什麼電信營收會季對季下滑嗎？

Yes. There were two things beyond the end-of-life stuff. The one I tried to explain in the script was really around coherent component growth, so micro ITLAs, ITLAs, coherent modulators and receivers, that business was down slightly.

可以。除了 end-of-life 相關因素之外，還有兩件事。我在講稿裡試著解釋的其中一個，主要是相干（coherent）元件的成長情況，也就是 micro ITLA、ITLA、相干調變器與接收器，那塊業務略為下滑。

As in the Q1 timeframe, we saw a large pent up demand that we were able to satisfy in Q1, and much of the balance of supply and demand became more in balance in Q2. And I'd say the third thing was the mix of ROADMs versus WSS modules as well. Our ROADMs unit grew in the quarter the mix of modules was much higher than the mix of blades.

在第一季的時間點，我們看到很大的累積需求（pent up demand），我們在第一季得以滿足；到了第二季，供需的平衡就更趨於均衡。我想第三個因素則是 ROADM 與 WSS 模組之間的產品組合。這一季我們的 ROADM 出貨量成長，但模組的組合占比遠高於刀鋒板卡（blades）的組合占比。

And so that caused our ROADM revenue to be down 10% even though our number of ROADMs shipped was up.

因此即使我們出貨的 ROADM 數量增加，我們的 ROADM 營收仍下滑了 10%。

Okay, so following up on that point, can you just help? It sounds like you were saying the blades are more of a US Metro product versus a WSS product? So when we think about the mix of blades, versus WSS, is there a regional implication or breakout there that makes that -- helps to understand the business?

了解，那我接著問一下，你能幫我釐清嗎？聽起來你是在說 blades 比較偏向美國都會（US Metro）產品，而不是 WSS 產品？所以當我們思考 blades 與 WSS 的組合時，是否有區域性的含意或拆分，能幫助理解這門生意？

I'd say that the majority of the blades that we design for our customers are for our US based, or North America based network equipment manufacturers, and a lot of those end up going into the North America Metro builds, but they also get deployed outside of North America. And, frankly, we don't know how much goes to North America versus EMEA or APAC.

我會說，我們為客戶設計的大多數 blades，是提供給以美國或北美為基地的網通設備製造商，而其中很多最後會用在北美都會網路建置，但也會部署到北美以外。坦白說，我們並不清楚有多少留在北美、多少到 EMEA 或 APAC。

But those are for primarily the large North American network equipment manufacturers whereas the WSS customers, the ones of note that we made in the script, were Chinese-based and most of what we had historically shipped into China exited China and ended up in Europe or CALA or other places. But, of note for last quarter, was there was large orders and shipments for WSS modules that will end up staying in China.

但那些主要是給大型北美網通設備製造商；而 WSS 的客戶——也就是我們在講稿中提到的那些重要客戶——是以中國為基地。我們過去出貨到中國的多數產品，後來會從中國轉出，最後到歐洲或 CALA 或其他地區。不過值得注意的是，上季有大量 WSS 模組的訂單與出貨，最後會留在中國。

Okay. Thanks for the questions. I'll follow the rules and may come back in at the end if there's still time.

好的，謝謝回答。我會遵守規則，如果最後還有時間我可能會再回來提問。

Alex Henderson, Needham & Company.

Alex Henderson，Needham & Company。

Yes, I was hoping that we could go into the ROADM a little bit more in depth. You are saying that you saw a 10% decline in blade sales. As you look forward into your guide, are you expecting that to reverse, are you expecting that to stay down at that new level and have a mix shift to more WSS and less blades? Can you give us any sense of how you see that progressing over time as we move forward?

是的，我希望我們可以更深入談一下 ROADM。你說你們看到 blades 銷售下滑 10%。展望你們的指引，你們預期會反轉嗎？還是預期會維持在新的較低水準，並且產品組合轉向更多 WSS、較少 blades？你能否讓我們了解一下，隨著時間往前推進，你們認為這會如何演變？

Sure, let me just do a clarification first. We saw a 10% reduction in ROADM revenue with ROADM units actually growing more than 10%. So that would mean a larger percent decline in blade shipments that would cause that kind of decline to happen.

當然，我先澄清一下。我們看到 ROADM 營收下滑 10%，但 ROADM 的出貨單位數其實成長超過 10%。這表示 blades 的出貨量下滑幅度會更大，才會造成那樣的營收下滑。

So, we expect as more and more North American cities get deployed for the major carriers here that the mix of blades will pick up in the future. I think our expectations are that this quarter it will probably be flattish on the blade level. But we could get surprised as budgets get released and more cities might pick up in North America. But that is our current expectation and what is in our guide.

因此，我們預期隨著北美越來越多城市被這裡的主要電信商部署，未來 blades 的組合占比會回升。我們的預期是本季 blades 的水準大概會持平。但也可能會有意外驚喜，因為當預算釋出後，北美可能會有更多城市加速推進。不過這是我們目前的預期，也已反映在我們的指引中。

So have you had any feedback from them on why the number of cities that are deploying or what the cause for the slowdown is? Is that a function for the availability of the parts, is it a function of other fires to fight? Is it M&A activity? What's causing that?

那你們有沒有從他們那邊得到任何回饋，說明為什麼部署的城市數量變少、或放緩的原因是什麼？是零組件供應可得性問題？還是有其他更急迫的事情要處理？是併購活動嗎？到底是什麼造成的？

It's hard to say. I'd say though that when people deploy ROADM networks, and several large cities got deployed in the second half of last year, the ROADMs go in and the next thing that happens is the transmission lines come to light up the fiber and light up the different wave lengths. And typically, one goes and then the other goes in a given city, so I would expect to see that as the transmission lines fill up in one city they move onto another city and they start again with the ROADMs and then go to the transmission line.

很難說。不過我會說，當大家部署 ROADM 網路時，去年下半年有幾個大城市完成部署，ROADM 先進場，接下來發生的是傳輸線路會進來點亮光纖、點亮不同波長。通常在同一個城市會先做一個、再做另一個，所以我預期當某個城市的傳輸線路逐步填滿後，他們就會轉到下一個城市，再從 ROADM 開始，然後再到傳輸線路。

Can you address whether you think there's any inventory involved with any of the correction there?

你能否說明一下，你是否認為那裡面有任何庫存因素，導致了那樣的修正？

I don't think so, Alex. I think that most of the inventory that we have is in the MI hubs for the North America customers, and that's pretty well-controlled. They pull it when they need it.

Alex，我不這麼認為。我認為我們的大部分庫存是在北美客戶的 MI hubs，那邊控管得相當好；他們在需要時才會拉貨。

Okay. I will cede the floor, thank you.

好的。我把時間讓給其他人，謝謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

Yes, Alan, thank you for taking my questions. I guess just following up on that inventory commentary, you did have a $20 million increase in inventories, and it looks like according to your Q that is almost entirely in finished goods. So what exactly is driving that build? Is that you restocking deplenshed inventories at the hubs? Or are there other products perhaps that you are building some inventory for?

是的，Alan，謝謝你回答我的問題。我想延續剛才關於庫存的評論，你們的庫存增加了 2,000 萬美元，而且看起來根據你們的 Q 幾乎全部都在成品。那麼到底是什麼在推動這個增加？是你們在 hubs 補回先前消耗的庫存嗎？還是你們正在為其他產品建立一些庫存？

Hey, Patrick, this is Aaron. So in terms of the inventory build, it's a mixture of different products. It's not one specific product family. And it's really to support the growth that we see here over the next couple of quarters.

嗨，Patrick，我是 Aaron。就庫存增加而言，它是不同產品的混合，不是某一個特定產品線。主要是為了支援我們在接下來幾季看到的成長。

And then, I guess on the data center side, you did talk about strengths in QSFP28 and also CFP2. I was wondering if you could just give us a broader breakdown of what exactly all the product lines that are embedded into that data center business and if there's any approximate mix that you could give us at this juncture?

另外，在資料中心方面，你確實提到 QSFP28 以及 CFP2 的強勁。我想請你更廣泛地拆解一下，究竟有哪些產品線被納入這個資料中心業務之中，以及在目前這個時間點，你能否提供任何大概的組合占比？

I would say, of the $60 million some odd Datacom that 90% of it today is probably in the CFP2 CFP4 form factor. And the balance is in the QSFP28, and as I said, most of the stuff we are shipping to the hyperscale data center today are CWDM4s, and whether they are inside the data center or connecting data centers that are relatively close together, it's not clear to me. But I do think that we are now at the stage where, with inside the data center, the types of products like CWM4 and PSM4 are taking off.

我會說，在約 6,000 多萬美元的 Datacom 裡，今天大概有 90% 可能是在 CFP2、CFP4 的外形規格（form factor）上。其餘則是在 QSFP28。如我所說，我們目前出貨給超大規模（hyperscale）資料中心的多數產品是 CWDM4；至於它們是用在資料中心內部，或是用來連接距離相對較近的資料中心，我不太確定。但我確實認為我們現在已經進入一個階段：在資料中心內部，像 CWDM4 和 PSM4 這類產品正在起飛。

And I guess, Aaron, I just need one more -- just a little bit of help on the gross margin upside. You clearly had higher volume, I think you talked about 100G Datacom mix and also the WSS module all helping that. But you also spoke to this nonrecurring charge; and I'm sorry I jumped on the call late. Did that non-recurring charge aid gross margin in the quarter and we should back it out for an apples to apples? Or is there anything else that I'm missing that drove that really impressive number?

我想，Aaron，我還需要再問一個——想請你再多幫我釐清一下毛利率超預期上行的原因。你們顯然出貨量更高，我記得你提到 100G Datacom 的組合，以及 WSS 模組也都有幫助。但你也提到這筆一次性費用；抱歉我比較晚才加入電話會議。這筆一次性費用在本季是否對毛利率有幫助、我們是否應該把它剔除以便做同口徑比較？或者還有其他我漏掉的因素，導致這個非常亮眼的數字？

No, there was no aid from any of the adjustments or the extraordinary charges. The gross margin accretion quarter to quarter was really driven by a favorable mix of products, 100 gig, and then the WSS modules. And then we also had a fair amount of submarine business that landed in Q2 as well.

沒有，任何調整項或特殊費用都沒有帶來幫助。毛利率季對季的提升，主要是由有利的產品組合所驅動，包括 100G，以及 WSS 模組。另外，我們在第二季也有相當一部分的海底（submarine）業務落在該季。

Great. Thank you for taking my questions. Good luck.

很好。謝謝你回答我的問題。祝順利。

Simon Leopold, Raymond James.

Simon Leopold，Raymond James。

Thanks for taking the question. First thing I wanted to see if you can give us a little bit more thought on is, what your assumptions are around the mix in the coming quarter particularly if you could touch on the annual price declines that affect your March quarter. And then, the longer-term trending question I wanted to see if you could talk a little bit more about the 3-D sensing opportunity in autos. I certainly have heard you talk in the past about the mobile device opportunities. In the prepared remarks I heard mention of autos. I'm just wondering how different that is, if this is new or whether I just hadn't heard you talk about that previously. If you could elaborate on that opportunity as well.

謝謝讓我提問。第一個我想請你們再多談一點的是，你們對下一季產品組合的假設是什麼，特別是如果你們能談談影響你們 3 月季度的年度價格下滑。然後，關於較長期的趨勢問題，我想請你們再多談談汽車領域的 3D 感測機會。我確實聽過你們過去談到行動裝置的機會。在事先準備的講稿裡我也聽到提到汽車。我想了解這有何不同，這是新的機會，還是只是我之前沒聽到你們談過？也請你們就這個機會再多做一些說明。

Sure, Simon. On the ASPs, I think as we said in the last call, our expectations were that the ASP reduction would be on the low-end of the typical 10% to 15%. And that's where we ended up. I'd say in typical years and this is no different, half of that comes into the March quarter. And we are seeing ASPs impacts our ability to grow and you could just take that number 5%-ish as what we are seeing for ASP reductions or expecting for ASP reductions in the March quarter.

好的，Simon。關於 ASP（平均銷售價格），我想如同我們在上次電話會議所說，我們的預期是 ASP 的下滑會落在典型 10% 到 15% 的低端，而結果也確實如此。我會說在一般年份——今年也不例外——其中一半會反映在 3 月季度。我們也看到 ASP 會影響我們的成長能力，你可以把大約 5% 左右視為我們在 3 月季度看到或預期的 ASP 下滑幅度。

As far as longer-term 3-D sensing, we've been talking about mobile devices for probably three years. And we are looking forward to that actually turning into revenue. I think we're on kind of that same range of automobiles taking that kind of time. We've been working with automobile manufacturers for the better part of a year now. And it's probably a couple years out before anything meaningful contributes to our revenue on that application.

至於較長期的 3D 感測，我們談行動裝置大概已經談了三年。我們也期待它真正轉化為營收。我認為汽車大致也會是類似的時間尺度。我們與汽車製造商合作已經將近一年了，而在那個應用上要有任何對營收有意義的貢獻，可能還要再過幾年。

Just to clarify, is the auto opportunity a different type of product or just a different application for the product you are already working on?

我想再確認一下，汽車的機會是不同類型的產品，還是只是你們已在開發的產品的不同應用？

They are all very custom, and the requirements of an automobile that protects someone's life on the road is very, very different than something in a mobile device. So, it is different but based on the fundamental based technology for VIXLs or edge emitters. It is different. The ASPs are going to be significantly different because of the complexity. You'll see multiple, multiple of these devices in any automobile as opposed to in the mobile devices where you'll see one or two.

它們都非常客製化，而汽車在道路上攸關人命安全的要求，和行動裝置上的要求非常、非常不同。所以它是不同的，但仍是建立在 VIXLs 或邊緣發射器（edge emitters）的基礎技術之上。它是不同的。由於複雜度，ASP 也會顯著不同。你會在任何一輛車上看到多個、很多個這類元件；相較之下，在行動裝置上你可能只會看到一個或兩個。

Thanks for the clarification.

謝謝你的釐清。

Doug Clark, Goldman Sachs.

Doug Clark，Goldman Sachs。

Great, following up on the 3-D sensing kind of opportunity it sounds like you got a little bit of a more visibility into one customer in particular. Can you talk about, besides initial orders, what type of visibility that's giving you into cadence throughout the rest of the year in terms of revenues and volumes?

很好，延續 3D 感測的機會來問，聽起來你們對某一位客戶特別有更高的能見度。你能談談除了初始訂單之外，這對你們在今年剩餘時間的營收與出貨量節奏（cadence）方面，提供了什麼樣的能見度嗎？

Not really, Doug. I mean our customers are very secretive and don't want us to disclose any more than we all ready have. I'd say that it's not just one mobile device manufacturer that we're working with and sampling. It's multiple.

其實不太能，Doug。我的意思是，我們的客戶非常保密，不希望我們揭露超出目前已披露的任何資訊。我會說，我們合作與送樣的不只是一家行動裝置製造商，而是多家。

I would hate to give away any of their secrets, and as we start including meaningful revenue in our guidance we will talk more and more about it. But suffice it to say that the milestones that we achieved over the last six months increase my confidence in our ability to make 3-D sensing a meaningful part of our business as we look forward.

我不希望洩露他們任何機密；而當我們開始在財測指引中納入有意義的營收時，我們會越來越多地談這件事。但可以這麼說：我們在過去六個月達成的里程碑，提升了我對於未來讓 3D 感測成為我們業務重要一部分的信心。

Okay, great. And then other one is on relative mix of telecom versus Datacom, expectations for the March quarter, can you talk about sequential growth or declines in each of those segments or perhaps kind of relative sequential declines in each of them? And a bit of a follow-up, last quarter you talked about the $10 million revenue slip in the Datacom business because some of the supplier constraint issues. How much of that was fulfilled in the March quarter, meaning did you get all of that $10 million back in the March quarter? Excuse me, December quarter.

好的，很好。另一個問題是關於電信（telecom）與資料通訊（Datacom）的相對組合，對 3 月季度的預期，你能談談這兩個區塊各自的季增或季減，或是它們各自相對的季減幅度嗎？另外追問一下，上季你們提到 Datacom 業務因為一些供應商產能限制問題，導致有 1,000 萬美元營收遞延。那其中有多少在 3 月季度被滿足了——我的意思是，你們是否在 3 月季度把那 1,000 萬美元都拿回來了？抱歉，我是說 12 月季度。

Doug, this is Aaron. In terms of the mix for the March quarter, so just looking at two big buckets that we categorize, [opcon] and lasers. Directionally, lasers will be up sequentially into the March quarter.

Doug，我是 Aaron。就 3 月季度的組合而言，如果只看我們分類的兩個大項目，[opcon] 和雷射（lasers），方向上來看，雷射在 3 月季度會較前一季成長。

And as Alan had mentioned in the prepared remarks, Q3 is typically our seasonal quarter where we have the most of the price declines that show up. So, most of the price decline is heavier in the opcon segment. So directionally opcon would be down a little bit because of the seasonal factors. And then also, submarine is a little bit lumpy, and I had mentioned that submarine was up in the December quarter and down a little bit in the March quarter.

而如 Alan 在事先準備的講稿中提到，第三季通常是我們的季節性季度，價格下滑最明顯的時點。因此，大部分的價格下滑在 opcon 區塊會更為集中。所以方向上 opcon 會因季節性因素而小幅下滑。另外，海底（submarine）業務也比較不均勻（lumpy），我也提到海底業務在 12 月季度較高，而在 3 月季度會稍微下降。

And your question on the $10 million of Datacom. As I said in the prepared remarks, while we grew nearly 100% in 100 gig datacom from Q1 to Q2, we still didn't satisfied all of the demand out there. So whether we satisfied that $10 million or not, the demand is still -- was still more than we could supply. And as we bring on more and more capacity we will be able to move some of that capacity to satisfy more of the hyperscale guys where the ASPs are significantly different than a 10 kilometer LR4 type of device. So that's what we see going forward on the Datacom business.

至於你問的 Datacom 那 1,000 萬美元。如我在事先準備的講稿中所說，雖然我們的 100G Datacom 從第一季到第二季成長了將近 100%，但我們仍未滿足市場上的全部需求。所以不論我們是否補回那 1,000 萬美元，需求仍然——仍然高於我們能供應的量。隨著我們逐步擴增更多產能，我們將能把部分產能用來滿足更多超大規模（hyperscale）客戶的需求，而那類產品的 ASP 與 10 公里 LR4 類型的元件有顯著差異。這就是我們對 Datacom 業務未來的看法。

All right got it. Thanks a lot.

好，了解了。非常感謝。

Tim Savageaux, Northland Capital.

Tim Savageaux，Northland Capital。

Hello, good afternoon. A couple of questions. First, a quick one on, if you have any comments on 10% customers or customer concentration anything changing or notable there.

你好，午安。我有幾個問題。第一個很快的問題是，你們對於 10% 客戶或客戶集中度方面，有沒有任何評論？那邊是否有任何變化或值得注意之處？

No, in terms of 10% customers, we will be talking about that or we will disclose it in our annual 10K.

沒有，關於 10% 客戶，我們會在年度 10-K 中討論或揭露。

Okay. No comments on any top five in the aggregate or meaningful changes of what we've seen in the past from previous Ks?

好的。那對於前五大客戶合計或相較於過去從先前 K 文件所看到的情況，有沒有任何重大變化的評論？

No, nothing notable from a change standpoint.

沒有，從變動的角度來看沒有什麼值得注意的。

Okay. Great. And then, follow up on the 3-D sensing side and maybe try to approach this from a different angle. That is to understanding a lot of differences in the technology relative to what you did with the connect, back in the day. Sort of checking the way back machine.

好的，很好。接著追問 3D 感測這一塊，也許我換個角度來問：想了解相較於你們以前做 connect（回想一下很久以前的事）的技術差異其實很多。算是翻一下舊資料。

It looks like that opportunity for you guys was something on the order of $100 million plus lifetime perspective and got up to $20 million a quarter or more. I wonder if you have any comments on sizing the current opportunities that you are pursuing relative to your previous experience in consumer 3-D sensing or gesture recognition. Thanks.

看起來當時你們的機會，從整個產品生命週期（lifetime）的角度大概是 1 億美元以上，並且曾達到每季 2,000 萬美元或更多。我想請問，你們是否能評論一下目前正在追求的機會規模，與你們過去在消費性 3D 感測或手勢辨識方面的經驗相比如何？謝謝。

Yes, I think, putting aside the timeframe for when this happens I would say that the market is multiple times bigger than the connect business and could imagine quarters of $100 million plus type of marketplace growing to over $1 billion, I would expect, as we get into multiple mobile devices and multiple customers with mobile devices.

是的，我想先不談發生的時間點，我會說這個市場規模是 connect 業務的好幾倍。你可以想像每季 1 億美元以上規模的市場，並且隨著多款行動裝置與多家客戶導入行動裝置，市場可望成長到超過 10 億美元，我預期會是如此。

So, I'd say that every indication is that it's a huge growth driver for us. Timing for initial ramp, I think we're still going to remain quiet on that until it actually starts happening. So one, the tidbit that we wanted to leave you with this time was we're actually shipping revenue units and are very comfortable with the progress that we've made and the milestones that we've achieved.

所以，我會說各項跡象都顯示這對我們而言是一個巨大的成長驅動因素。至於初期放量的時點，我想在它真正開始發生之前，我們仍會保持低調不多談。所以，這次我們想留給各位的一個小重點是：我們其實已經在出貨可認列營收的產品單位，並且對我們目前取得的進展與達成的里程碑感到非常有信心。

Well, just to follow up very briefly on that. You mentioned you were seeing shipments, does that indicate that the ramp is beginning, or are we still kind of sampling or qualification type situation?

好，我只是非常簡短地追問一下。你提到你們看到出貨，這是否表示放量已經開始了？還是我們仍然處於樣品提供或認證/資格驗證的階段？

This is more completion of the qualification and getting to the point where all of the bugs are worked out. But we are very comfortable with where we are, and we still need to have a few more success points along the road to get to the meaningful revenue.

這比較像是完成資格驗證，並且走到把所有問題都排除的階段。不過我們對目前的狀況非常有信心，只是要走到有意義的營收之前，沿途還需要再達成幾個成功節點。

Sounds fairly meaningful, indeed. Thanks.

聽起來確實相當有意義。謝謝。

Thank you.

謝謝你。

Rod Hall, JPMorgan.

Rod Hall，摩根大通。

Yes, hey guys, thanks for taking the question. I wanted to come back to the data center supply situation and to see if you guys could walk us through where the supply constraints still exist, how much longer you expect them to go, that sort of thing. We continue to hear the short range optics in particular, I guess the P28s are in short supply.

是的，嗨各位，謝謝讓我提問。我想回到資料中心供應的情況，看看你們能否帶我們梳理一下目前供應限制仍然存在於哪些地方、你們預期還會持續多久之類的。我們持續聽到特別是短距離光學元件供應偏緊，我想是指 P28 這些產品供應不足。

So I'd just like to confirm that is the case and when do you guys think that you can meet the supply constraints. And if you could just maybe broaden that out and talk a little bit more about where else you are supply constrained. And then I also wanted to come back to this ROADM question.

所以我想確認這是否屬實，以及你們認為何時能夠滿足供應限制。另外也想請你們把範圍稍微擴大一點，談談還有哪些地方也受到供應限制。然後我也想再回到這個 ROADM 的問題。

What I guess I don't fully -- and you are saying that you expect the blade ROADMs to ramp back up. Can you give us any idea on visibility there? Do you have visibility on timing? Do you expect meaningful ramp in fiscal Q3, or you just don't know? Any color that you can give us on what the disability looks like for those blade runs would be helpful.

我想我沒有完全理解——你們說你們預期刀鋒式（blade）ROADM 會再度放量。你們能否提供一些能見度？你們對時點有能見度嗎？你們預期在會計年度第 3 季會有明顯放量，還是你們也不確定？任何你們能提供的資訊，關於這些刀鋒產品的可見度/能見度情況，都會很有幫助。

Sure. The data center supply as I said in the prepared remarks, we focused our capacity on satisfying the 10 kilometer products mostly for the manufacturers and didn't meet the demands of the hyperscale customers that we had orders for but did not satisfy.

當然。資料中心供應方面，如同我在事先準備的講稿中提到的，我們把產能重點放在滿足製造商對 10 公里產品的需求，因此沒有滿足我們已接到訂單、但尚未交付的超大規模（hyperscale）客戶需求。

So I'd say that as we continue to bring on more and more capacity, we will start shifting that capacity to the hyperscale guys, and that's going to start really in a meaningful way this quarter and next. Where else do we see supply constraints? As I indicated 980 pumps are on serious constraint.

所以我會說，隨著我們持續導入越來越多的產能，我們會開始把這些產能轉向超大規模客戶，而這件事會在本季與下季以更有意義的方式開始。還有哪些地方有供應限制？如我所指出的，980 泵浦（pumps）正面臨嚴重的供應限制。

And the point I tried to make and maybe didn't come across in the prepared remarks was, that the first thing that people need to do to light up new fiber is to buy pumps or amplifiers, and those things go in as a leading indicator that new networks are being deployed. So as long as 980 pumps continue to be constrained, I am very encouraged with our opportunity to grow. Visibility on WSS ROADMs, I think it's hit and miss. As far as the blades are concerned, I think that's a matter of when do the large North America carriers release their budgets and when do they take on more cities; and so, right now we're seeing that a couple of new cities are being deployed and we're being expedited for some of these ROADM blades.

我想強調的一點——也許在事先準備的講稿中沒有表達得很清楚——是人們要點亮（啟用）新的光纖，第一件事就是購買泵浦或放大器，而這些東西作為領先指標，代表新的網路正在部署。因此，只要 980 泵浦仍然供應受限，我就對我們的成長機會感到非常鼓舞。至於 WSS ROADM 的能見度，我認為時好時壞。就刀鋒產品而言，我認為這取決於北美大型電信業者何時釋出預算、以及何時擴展到更多城市；因此目前我們看到有幾個新城市正在部署，我們也被要求加速供應其中一些 ROADM 刀鋒產品。

But I will say, that my confidence in visibility in WSS modules in China is pretty clear. I'm very confident that we will see continued growth in China on the individual WSS modules.

但我會說，我對中國 WSS 模組的能見度相當清楚。我非常有信心，我們在中國的單顆 WSS 模組將會持續成長。

On your hyperscale comment could you just clarify, do you expect to be able to supply what they are demanding by, let's say, the end of fiscal Q3? Or do you think -- can you give us any idea when hyperscale can get what they want from an optics point of view?

關於你提到的超大規模客戶，你能否再釐清一下：你們是否預期在會計年度第 3 季末之前，就能供應他們所要求的量？或者——你能否給我們一些概念，從光學元件的角度來看，超大規模客戶何時能拿到他們想要的供應？

Yes. Well, we have orders today that we are not satisfying this quarter on hyperscale.

可以。嗯，我們目前確實有一些超大規模客戶的訂單，是我們在本季無法滿足的。

When do you expect to be able to meet demand for hyperscale? Is that next quarter, or is it two or three quarters from now?

你們預期何時能滿足超大規模客戶的需求？是下季，還是要再兩到三季之後？

It could depend upon how many new orders come in and this quarter as well, Rod. And also, a couple of months ago we did launch a significant capacity in the form of assembly and test equipment. That's not online just yet.

這可能取決於本季還會進來多少新訂單，Rod。另外，幾個月前我們也以組裝與測試設備的形式，啟動了一項顯著的產能擴充，但那部分目前還沒有正式上線。

Typically takes about six months to get capacity online. So we're hopeful that maybe by the June quarter it could be a little bit better, but it depends upon what new business comes in as well.

通常要大約六個月才能讓產能上線。所以我們希望也許到 6 月那一季情況會好一些，但同樣也取決於會有多少新業務進來。

Yes, and I think the other point is that's important is a lot of hyperscale data centers are being deployed with 40 gig. Our exposure to that market is very, very small. So as they transition to 100 gig I think we're going to continue to be in a constrained environment through this calendar year assuming that transition happens as I project going forward.

是的，我想另一個重要點是，很多超大規模資料中心目前仍以 40G 來部署。我們在那個市場的曝險非常、非常小。因此，當他們轉向 100G 時，我認為在我所預期的轉換進程下，我們在今年這個曆年內仍會處於供應受限的環境。

Okay. Thank you very much.

好的。非常感謝。

Meta Marshall, Morgan Stanley.

Meta Marshall，摩根士丹利。

Hello. Thanks for the question. A couple. I think you just addressed it in the answer to the last question. But, an update on ACO timing, because I know that you have been testing coming out of last year and that you were hoping to start production this year.

你好，謝謝讓我提問。有兩個問題。我想你剛才在回答上一題時已經部分提到了。不過，想請你更新一下 ACO 的時程，因為我知道你們從去年底就一直在測試，並且希望今年開始量產。

Is that still kind of a Q2 event? And then the second question I had is just back to the ROADM question. Mentioning that, you know, deployments you don't know what cities and some of the reason for it potentially being kind of down next quarter.

這仍然算是第 2 季會發生的事情嗎？第二個問題是回到 ROADM。你提到部署時你們不知道會有哪些城市，以及這可能是為什麼下季看起來可能會偏弱的一部分原因。

But I just wanted to make sure, is that is due to any kind of share shift between a competitor getting qualified and some new cities going to a competitor, or is there something we feel like all cities are going to you? Thanks.

但我想確認一下：這是否是因為競爭對手取得認證導致市占移轉、一些新城市轉給競爭對手？還是我們認為所有城市仍然都會由你們拿下？謝謝。

Okay let me answer that ROADM question first. I don't think that ROADM blades will be down this quarter. I think we are projecting them to be flat with last quarter. But last quarter they were down from Q1. As far as share shifting, I don't see any share shifting going on.

好，我先回答 ROADM 的問題。我不認為 ROADM 刀鋒產品本季會下滑。我們的預期是與上季持平。不過上季相較於第 1 季是下滑的。至於市占移轉，我沒有看到任何市占移轉正在發生。

I think we still have 99% if not 100% of those blade deployments going on in cities. And so, I'm pretty confident that we put the inventory in the BMI hubs and it's there when the customers need it, they are going to continue to pull from us. And so far so good in the deployments and the quality aspects of turning up those new cities.

我認為我們仍然拿下 99% 甚至 100% 的城市刀鋒部署。因此我相當有信心：我們把庫存放在 BMI 樞紐（hubs），當客戶需要時庫存就在那裡，他們會持續向我們拉貨。到目前為止，部署進展與新城市開通的品質面都很順利。

So very happy with that; it will be there for when our customers deploy more and more cities. And as far as the CFE2 ACO timing is concerned, I guess just an update on that, we made continued progress. We are now to the point where we believe we have our final configuration of product that we are going to take into production.

所以我們對此非常滿意；當客戶部署越來越多城市時，產品也會在那裡供應。至於 CFE2 ACO 的時程更新，我們持續取得進展。我們現在已經到了一個階段：我們相信已經確定了將要導入量產的最終產品配置。

We are shipping samples of that product -- final qualification samples of that product and expect as we get through our internal qualification testing that takes thousands of hours, then we will release that product that we have today.

我們正在出貨該產品的樣品——也就是最終資格驗證樣品；並且預期在完成我們內部需要數千小時的資格驗證測試後，我們就會釋出我們目前這個版本的產品。

And so we have made a tremendous amount of progress on that. I would say that there is not meaningful revenue in this quarter and hoping to have some revenue in the fourth quarter but really taking off more in the second half of the calendar year.

因此我們在這方面取得了非常大的進展。我會說本季不會有具意義的營收；希望在第 4 季能有一些營收，但真正起飛會更偏向在曆年下半年。

Great, thanks for the clarification.

很好，謝謝你的釐清。

Joseph Wolf, Barclays.

Joseph Wolf，巴克萊。

Thanks, I wanted to go back to a couple of questions from the competitive angle. Just on a hyperscale comments you made two comments. One is that 100G you can't fulfill, because you are fulfilling telecom. And then you mentioned a little bit about 40G.

謝謝，我想從競爭的角度回到幾個問題。關於你對超大規模客戶的評論，你提了兩點：第一是 100G 你們無法滿足，因為你們在滿足電信端；然後你也提到了一點 40G。

And I'm just wondering if there are contractual issues? You mentioned ASPs. But I'm just trying to get a better sense on how the customers are reacting to not getting their product. Or is that comment on 40G basically saying they are ordering but they don't need to deploy just yet? And what does the competitive landscape look like? And then I have a follow up.

我想了解是否有合約方面的問題？你提到了 ASP（平均售價）。但我想更清楚了解客戶對於拿不到產品的反應如何。或者你對 40G 的評論是否是在說：他們在下單，但其實還不急著部署？競爭態勢看起來如何？然後我還有一個追問。

Yes, so, I would say that if you look back in time, we had a pretty big customer for our 40 gig, 2 kilometer product in the hyperscale space but became uncompetitive because we weren't totally vertically integrated with that. So that's around my comment on the 40 gig. You don't really have much 40 gig, 2 kilometer business any longer.

是的，所以，我會說如果你回頭看，我們在超大規模（hyperscale）領域的 40G、2 公里產品曾經有一個相當大的客戶，但因為我們在那方面並沒有做到完全垂直整合，因此變得沒有競爭力。這也就是我對 40G 的評論背景。你現在其實已經幾乎沒有 40G、2 公里的業務了。

And my point is as those hyperscale data centers transition from 40 gig to 100 gig, it's going to be a loss for the guys that are providing a lot of the 40 gig, and it's going to be 100% gain for us for anything we can supply at 100 gig. And just to be clear, that the 100 gig products that we shipped last quarter or the primary part of our growth was in the network equipment manufacturers, and it is really the client side of the telecom network, but really it's a Datacom product that's 10 kilometres. So, on the competitive landscape, on those 10 kilometer products there's fewer competitors. It's us. It's Finesar. It's Oclaro. Pricing' s better. ASPs are significantly higher than within the hyperscale data center.

而我的重點是，當這些超大規模資料中心從 40G 轉向 100G 時，對那些大量供應 40G 的廠商來說會是損失；而對我們而言，只要是我們能供應的 100G 產品，就會是 100% 的增量。再澄清一下，我們上季出貨的 100G 產品、或我們成長的主要部分，是在網路設備製造商端，實際上是電信網路的客戶端，但本質上是一個 10 公里的 Datacom 產品。所以在競爭態勢上，這些 10 公里產品的競爭者較少：我們、Finesar、Oclaro。定價更好，ASP（平均銷售單價）也顯著高於超大規模資料中心內的產品。

Costs are much lower in the hyperscale data center, but its still uses that same capacity. So, there are more competitors in the hyperscale. Not all of them are delivering, but a lot of them are quoting. And that creates an environment where the ASPs are significantly below the 10 kilometer part.

超大規模資料中心的成本低很多，但仍然使用相同的產能。因此，在超大規模市場裡競爭者更多。並不是所有人都能交付，但很多人都在報價。這就造成那裡的 ASP 顯著低於 10 公里那一段。

Okay. Thanks for that. And then, just back on the [wind] for the gesture, the 3-D sensing opportunity, it sounds like there's a couple of those out there. You mentioned a couple of handset vendors where you could see opportunities. But a bunch of other companies are saying the same thing.

好的。謝謝你的說明。然後再回到關於（[wind]）那個手勢的部分，3D 感測的機會，聽起來外面有幾個。你提到幾家手機廠商，你覺得可能會有機會。但也有一堆其他公司在講同樣的事。

And I'm just wondering the competitive landscape, is it for the application? Are you running into people-- are you running into competitors head to head? With everybody spending on this end market, what's the Lumentum competitive advantage? And do you have a specific application where you think you are ahead versus a couple, or is everybody going after the same application?

我想問的是競爭態勢，是針對這個應用嗎？你們是否會遇到——是否會和競爭對手正面交鋒？在大家都投入這個終端市場的情況下，Lumentum 的競爭優勢是什麼？你們是否有特定的應用，你們覺得相較於其他幾家你們領先？還是大家都在追同一個應用？

Well, I'm not going to talk about handset or handset suppliers. What I said with mobile device manufacturers, and you can imply what you can from that. I would say that Lumentum's competitive advantage is that we have been in the consumer electronics space shipping 3-D sensing products for the last eight years.

嗯，我不會談手機或手機供應商。我說的是行動裝置製造商，你可以從中自行推論。我會說 Lumentum 的競爭優勢在於，我們過去八年一直在消費性電子領域出貨 3D 感測產品。

We have figured out how to make sure we design a product and test it accordingly to make sure we don't have any defective parts. So, I would say that we are the only one in the world that has a track record of understanding 3-D sensing and the reliability requirements associated with that.

我們已經摸索出如何確保在設計產品時並配合相應的測試，以確保不會有任何瑕疵零件。所以我會說，我們是全球唯一一家在理解 3D 感測以及其相關可靠度要求方面有實績紀錄的公司。

So, on the other side, there's enough demand for more than one supplier per application. And I would say, in fact there's probably a need for more than one supplier per application just because of the sheer volume of these devices. And so I'm not disappointed that we're competing.

因此，另一方面，每個應用的需求量足以支撐不只一家供應商。事實上，可能每個應用都需要不只一家供應商，因為這些裝置的出貨量實在太大。所以我們並不會因為在競爭而感到失望。

We think we're in a good position with our products, our technology, and our infrastructure to be able to support our customers now and in the future.

我們認為，憑藉我們的產品、技術與基礎設施，我們現在以及未來都處於能夠支援客戶的良好位置。

Okay. Thank you.

好的。謝謝。

Sure.

當然。

Jorge Rivas, Craig Hallum.

Jorge Rivas，Craig Hallum。

Thank you for taking my question. First, just a housekeeping question. I'm not sure if you mentioned how much revenues from fiber lasers were in the quarter.

謝謝讓我提問。首先，一個例行性的問題。我不確定你是否提到本季光纖雷射的營收是多少。

Fiber lasers were about $10.6 million or so, about $11 million.

光纖雷射大約是 1,060 萬美元左右，大概 1,100 萬美元。

And then, I hear in the commentary that you are confident that calendar 2017 is going to be a strong year in China. I wonder if you can provide some color as to what gives you that confidence. I understand that you are seeing strong orders from pump lasers. But any additional color that you can provide us to what's giving you that confidence and at the same time, do you expect that in China specifically to be a backend loaded calendar year? Or are you expecting more consistent demand throughout the quarters in calendar 2017?

然後，我在你們的評論中聽到你們對 2017 年曆年在中國會是強勁的一年很有信心。我想請你補充一些細節，什麼讓你有這樣的信心。我理解你們看到泵浦雷射的訂單很強，但你還能否提供更多說明，究竟是什麼讓你有信心？同時，你是否預期在中國特別會是下半年較強的曆年（backend loaded）？還是你預期 2017 年各季需求會更為一致？

Yes, I think my confidence in China is really based on two things. One is, the discussions we have with our customers and with the carriers and what their plans are. But more importantly, their commitment to deploy ROADMs puts us in a unique position compared to our competitors.

是的，我對中國的信心主要來自兩件事。第一是我們與客戶及營運商的討論，以及他們的規劃。但更重要的是，他們承諾部署 ROADM，這讓我們相較於競爭對手處於一個獨特的位置。

I think as they deploy ROADMs, there will be a lot of them. And they are buying a lot of them from us. So I think, different and apart from some of our other competitors who don't have ROADMs, I think we are going to grow from zero ROADMs in China to a lot of ROADMs in China.

我認為隨著他們部署 ROADM，數量會很多，而他們也正從我們這裡採購很多。所以我認為，與一些沒有 ROADM 的其他競爭對手不同，我們將會在中國從零 ROADM 成長到很多 ROADM。

That's one of my reasons for the belief. And I do think not to underestimate that we can't seem to satisfy the pump lasers in China, you don't light up fiber with amplifiers unless you're going to put stuff on the ends of them without putting ROADMs and other 100 gig transponders and modems into the network.

這是我相信的原因之一。另外我也認為不要低估一點：我們似乎無法滿足中國對泵浦雷射的需求；而你不會在沒有把東西放到光纖兩端的情況下，只靠放大器去點亮光纖——也就是說，若不把 ROADM 以及其他 100G 轉發器與數據機放進網路，就不會發生。

So, this quarter or next quarter, it's still not clear to me. But the last weeks have been a little bit quiet period given Chinese New Year. I'll be going back to China in a couple of weeks and getting more G2. And I think we've incorporated what we know into our Q3 guidance, and I'll learn more in a couple of weeks when I come back from my visit.

所以，是在本季還是下季，我目前還不清楚。但過去幾週因為農曆新年而稍微安靜一些。我會在幾週後再去中國，取得更多第一手資訊。我想我們已把目前所知納入 Q3 指引中，而等我這次拜訪回來後，幾週內我會了解更多。

Thank you. And just one more follow up, if I can. So the [plumbing] in ROADMs in China, do you have the space to be the majority of these ROADMs of your next generation [thruflakes] or any idea what you're looking at right now?

謝謝。然後如果可以再追問一題。關於中國 ROADM 的（[plumbing]）配置，你們是否有空間在下一代（[thruflakes]）中成為這些 ROADM 的主要供應？或你們目前看到的情況是什麼？

Yes, I think that we're extremely well-positioned not only with this generation of twin 1 x 20, twin 1 x 9, but we are also coming out with next-generation edge ROADMs that are very, very competitive as well, is even higher port count ROADMs that we are working with our customers with. So I'm really confident and pleased with our progress and the share that we expect to get, and I think the share that we are getting today on those ROADMs. So, pretty happy with that.

是的，我認為我們不僅在這一代的 twin 1x20、twin 1x9 上處於非常有利的位置，我們也正在推出下一代邊緣（edge）ROADM，競爭力也非常、非常強；此外我們也正與客戶合作開發更高埠數（port count）的 ROADM。所以我對我們的進展以及我們預期能取得的市占非常有信心，也對我們今天在這些 ROADM 上正在取得的市占感到很滿意。所以，對此相當開心。

Thank you very much. That's all for me.

非常感謝。我這邊就這些。

Thank you.

謝謝。

Troy Jenson, Piper Jaffray.

Troy Jenson，Piper Jaffray。

Thanks for sneaking me in here. Just a quick follow-up on China, and then I've got another one. On the ROADMs into China, Alan, can you confirm that it's all going to China telco right now? When do you think China mobile will start?

謝謝讓我插個問題。先快速追問一下中國，然後我還有另一題。關於 ROADM 出貨到中國，Alan，你能否確認目前都是供給中國電信嗎？你認為中國移動什麼時候會開始？

I think that there's China telecom is probably furthest along, but I would say that the ROADMs we are shipping today, are for more than that, whether that would be in additional trials or field deployments.

我認為中國電信可能進度最領先，但我會說我們今天出貨的 ROADM 不只用在那裡，可能也包括其他額外的測試（trials）或現場部署（field deployments）。

It's not just totally clear to me, and I will get more clarity when I'm there next time. But I think that it's a broad deployment strategy, and I'm pretty confident that it will be more than just China telecom this calendar year.

目前我還不是完全清楚，等我下次去的時候會更明朗。但我認為這是一個廣泛的部署策略，而且我相當有信心在今年曆年內不會只有中國電信。

And one last question, just on the sensing market. Is Heptagon a customer or partner of yours for the 3-D sensing in that smart phone market?

最後一題，關於感測市場。Heptagon 是否是你們在智慧型手機 3D 感測市場的客戶或合作夥伴？

Troy, we like to not comment on our customers in the 3-D sensing market.

Troy，我們一向不評論我們在 3D 感測市場的客戶。

Are they a partner? I just I think the end customer would be somewhat different, but this would be a module maker.

他們是合作夥伴嗎？我想終端客戶會有些不同，但這會是一家模組製造商。

We are very familiar with them and have done business with them in the past.

我們對他們非常熟悉，過去也曾與他們有業務往來。

Okay. Understood. Thank you, guys. Keep up the good work.

好的。了解。謝謝各位。請繼續保持良好的表現。

Thank you, Troy.

謝謝你，Troy。

Michael Genovese, MKM Partners

Michael Genovese，MKM Partners

Thanks a lot. So, it sounds like sequentially we're expecting in the current quarter, optical to be down, both telecom and Datacom. And I just wanted to ask, do you think that units, are we having seasonality in units and would that be on both telecom and Datacom? Or is that more a function of pricing with the annual price declines for the reasons for the sequentially down revenue?

非常感謝。所以，聽起來按季來看，我們預期本季光學業務會下滑，電信與資料通訊（Datacom）都會下滑。我想請教的是，出貨量是否存在季節性？而且這會同時發生在電信與資料通訊上嗎？還是說，營收按季下滑更多是定價因素所致，例如年度價格下滑等原因？

So, I would say in Datacom, 100 gig datacom, we're going to see sequential unit growth. And, that will probably be offset by continued declines in slower speed stuff. And the ASPs will be lower as a result of more of our units and more of our capacity being shipped into the hyperscale data center. I would say the telecom business, 5% ASP reduction, we are probably going to get less than that from a unit growth. But a lot of it has to do with mix as well. As Aaron indicated, we are expecting to see a little bit down in submarines. We are going to continue to see increases in pump lasers, and then, ROADMs I would say our expectations are pretty much flat quarter-to-quarter.

我會說在資料通訊方面，100G 資料通訊我們將看到出貨量按季成長。而這可能會被較低速產品持續下滑所抵消。由於我們更多的出貨量與產能將出貨至超大規模資料中心，因此 ASP 會更低。我會說電信業務方面，ASP 下調 5%，我們從出貨量成長得到的貢獻可能會低於這個幅度。但其中很大一部分也與產品組合有關。如 Aaron 所指出，我們預期海底（submarine）業務會小幅下滑。我們將持續看到泵浦雷射（pump lasers）增加，至於 ROADM，我會說我們的預期基本上是季度對季度持平。

Okay. And just last follow-up here. You know, you mentioned that a year ago there wasn't as much seasonality. Was that comment primarily directed at Chinese demand saying that there would be more seasonality this year or is that a more across the board comment versus a year ago timeframe?

好的。最後一個追問。你提到一年前季節性沒有那麼明顯。那個評論主要是針對中國需求、表示今年季節性會更明顯嗎？還是說，這是相較於一年前、較為全面性的評論？

Yes, so, two things. One, it was probably November of 2015 when China turned on. So, anything that you could shift or anything that you could put in place to satisfy demand, even through the Chinese New Year, was being consumed.

是的，有兩點。第一，大概在 2015 年 11 月中國需求啟動。所以任何你能調整、或任何你能到位以滿足需求的東西，即使跨過農曆新年，也都被消化掉了。

The other thing, and when you do a comparison of our Q3 to Q3, last Q3 was a 14 week quarter. But I'd say that the seasonality portion of it was just the fact that it was the front end of China going crazy with deployments, and it's more balanced between supply and demand.

第二點，當你把我們的 Q3 與 Q3 做比較時，去年 Q3 是一個 14 週的季度。但我會說，季節性的部分主要在於那是中國部署瘋狂成長的前期，而現在供需之間更為平衡。

Okay. Thanks a lot.

好的。非常感謝。

Dave Kang, B Riley.

Dave Kang，B Riley。

Thank you. Good afternoon. First, on 3-D sensing, could you just talk about the capacity situation, what is it now and where you plan to be late this year, late calendar 2017?

謝謝。下午好。首先關於 3D 感測，你能否談談產能狀況：目前是什麼情況，以及你們計畫在今年稍晚、也就是 2017 年曆年稍晚達到什麼水準？

The simple answer is no. But, maybe some color around that. We are partnering with some foundries that are making some of the investment. We're making some of the investment, and we're working with our customers to ensure that we bring that capacity online when they need it.

簡單的答案是不行。但我可以補充一些背景。我們正與一些晶圓代工廠合作，他們會投入部分投資；我們也會投入部分投資，並且與客戶合作，確保在他們需要時把產能上線。

So it's the dynamic -- it's a dynamic decision-making process that really we would prefer to stay away from. As Aaron talked about it in the script, some of the capacity adds that we had last quarter are going specifically to 3-D sensing. So we are seeing more meaningful deployments of CapEx for us internally as well.

所以這是一個動態——是一個動態的決策流程，我們其實比較希望避免細談。正如 Aaron 在講稿中提到的，我們上季新增的一些產能是專門用於 3D 感測。因此我們也看到公司內部在資本支出（CapEx）上的投入更為顯著。

Right. But then I guess your challenge is some of your equipment, front end equipment, has very long lead times so that will be sort of a challenge as far as that time the turn up, right?

了解。但我想你們的挑戰在於部分設備、前段設備（front end equipment）交期很長，所以在產能開出（turn up）的時點上會是一個挑戰，對嗎？

Yes, we have ample capacity allocated to us for all of the growing [FE]. So that to me right now is already installed. It's not an issue for hitting the peak levels. So, those super long lead time items are all ready taken care.

是的，我們已為所有成長中的 [FE] 分配了充足的產能。就我目前看來，那些產能已經安裝到位。要達到高峰水準不是問題。所以，那些超長交期的項目都已經處理好了。

Got it. That's helpful.

了解。這很有幫助。

We're talking more about backend testers and the ability to test what we need to test at the backend. So those lead times for those tools are much shorter.

我們更多是在談後段測試機（backend testers）以及在後段能夠測到我們需要測的項目的能力。所以那些工具的交期要短得多。

Sure. And then have you -- or maybe your customers, I don't know who's going to decide. But regarding you will be supplying [bear dyes or orthosis]? Any color on that situation? And of course, the gross margins with each particular product.

好的。那麼你們——或可能是你們的客戶，我不確定由誰決定——關於你們是否會供應 [bear dyes or orthosis]？這方面有沒有一些說明？當然也包括各個產品的毛利率。

Yes, it really depends upon the customer and what they want to do. I would say, that probably the main driver for the first generation of stuff we are working on the mobile applications is at the bear tested dye level.

是的，這真的取決於客戶以及他們想怎麼做。我會說，我們目前在行動裝置應用上所做的第一代產品，主要驅動因素可能是在「裸測晶粒」（bare tested die）層級。

So you won't be needing a package or anything like that?

所以你們不需要封裝或類似的東西？

No. And then from a gross margin perspective, one would expect that at the bear dye level you would see higher margins than you would see at a packaged level or at an optical component level.

不需要。從毛利率角度來看，一般會預期在裸晶粒（bare die）層級的毛利率會高於封裝層級或光學元件層級。

Sure. And then just, I guess to ask questions on the China ROADM situation, do you know whether it's a CD or a CDC, and what is the dollar content difference between CD and CDC? Is it just MCS? What's the ASP of MCS? And then just follow up for Aaron, what is your CapEx budget for this fiscal year? That's it for me.

了解。然後我想再問一下中國 ROADM 的情況，你知道是 CD 還是 CDC 嗎？CD 與 CDC 的單位美元含量差異是多少？差異只是 MCS 嗎？MCS 的 ASP 是多少？另外再追問 Aaron：你們本財年的資本支出預算是多少？我就這些。

CapEx budgets we have been spending 10% of revenue on CapEx. And as we continue to spend money and prepare for 3-D sensing ramp, I think 10% is probably where we would be at for the foreseeable future.

資本支出方面，我們一直以營收的 10% 作為 CapEx 支出。隨著我們持續投入並為 3D 感測放量做準備，我認為在可預見的未來，10% 大概就是我們會維持的水準。

And then as far CD versus CDC, they're both getting deployed. And we think we're very well positioned for both network architectures. And then we have a multicast switch that meets the needs of the CDC networks and depending on where you buy if you buy at a module level or blade level, the MCS can be similar in price to a ROADM or ROADM blade.

至於 CD 與 CDC，兩者都在部署中。我們認為我們在這兩種網路架構上都具備很好的布局。我們也有一款多播交換器（multicast switch），可滿足 CDC 網路的需求；而且取決於你是以模組（module）層級或刀鋒（blade）層級採購，MCS 的價格可能與一個 ROADM 或 ROADM 刀鋒相近。

And that's the main difference between CD and CDC whether MCS is included or not?

所以 CD 與 CDC 的主要差異就是是否包含 MCS？

Yes. Pretty much. I mean, there are some architectural issues but from our perspective it means we sell MCSs and probably more ROADMs.

是的，差不多。我的意思是，確實有一些架構上的差異，但從我們的角度來看，這代表我們會賣 MCS，並且可能會賣更多的 ROADM。

Got it. Thank you.

了解。謝謝。

Thanks, Dave.

謝謝你，Dave。

This concludes the question-and-answer session. I would like to turn the conference back over to Alan Lowe, President and Chief Executive Officer for closing remarks.

問答環節到此結束。我想把電話會議交回給總裁兼執行長 Alan Lowe 作結語。

Thank you, operator. I want to thank our customers for their business and our employees for all of their hard work in growing our business, putting us in an excellent position in the market. I believe we are in a world wide bandwidth expansion, and photonics are increasingly becoming critical to manufacturing and next-generation high-volume 3-D sensing applications making the future bright at Lumentum. We regularly discuss our business at investor relations events. These events are listed on our website in the investor relations section and are regularly updated. This concludes our call for today. We would like to thank everyone for attending.

謝謝你，接線員。我想感謝我們的客戶對我們業務的支持，也感謝我們的員工在推動業務成長上付出的辛勤努力，讓我們在市場上處於極佳的位置。我相信我們正處於全球頻寬擴張的趨勢中，而光子技術正日益成為製造業與下一代高產量 3D 感測應用的關鍵，使 Lumentum 的未來一片光明。我們會在投資人關係活動中定期討論我們的業務。這些活動列在我們網站的投資人關係專區，並會定期更新。今天的電話會議到此結束。感謝各位與會。

We look forward to speaking with you again in another three months. Thank you.

我們期待在三個月後再次與各位交流。謝謝。

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

各位女士、先生，感謝您參與今天的會議。本次議程到此結束。您現在可以掛線。祝各位有美好的一天。