Lumentum Holdings Inc. (LITE) 2018 Q1 法說會逐字稿

Good morning. My name is Dan and I will be your conference operator today. At this time, I would like to welcome everyone to Lumentum's fiscal first quarter 2018 financial results. (Operator Instructions). Chris Coldren, Vice President, Strategy and Corporate Development, please go ahead.

早安。我叫 Dan，今天將擔任各位的電話會議主持人。此刻，我想歡迎各位參加 Lumentum 2018 會計年度第一季財務業績電話會議。(接線員指示)。策略與企業發展副總裁 Chris Coldren，請開始。

Thank you, Dan. Welcome to Lumentum's first quarter fiscal 2018 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，Dan。歡迎參加 Lumentum 2018 會計年度第一季財報電話會議。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 the markets in which we operate, trends and expectations for products and technology, 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. 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 first quarter ended September 30, 2017, that will be on file with the SEC 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 obligations to update these statements except as required by applicable law.

本次電話會議將包含前瞻性陳述，包括關於我們所營運市場、產品與技術趨勢與展望、採購趨勢、Lumentum 預期財務表現、費用以及我們在市場中的地位等陳述。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有重大差異。我們鼓勵各位查閱我們最近向美國證券交易委員會（SEC）提交的文件，特別是我們截至 2017 年 9 月 30 日之 2018 會計年度第一季 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至 SEC 存檔。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任何義務。

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. A press release with our first quarter fiscal 2018 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，所有結果與展望皆為非 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。我們已在公司網站 www.lumentum.com 的投資人（Investor）專區提供 2018 會計年度第一季業績新聞稿，並包含關於非 GAAP 財務衡量指標的更多細節，以及 GAAP 與非 GAAP 結果之間的調節表。

The website also has our latest SEC filings, which we encourage you to review, and supplementary slides relating to today's earnings release. Finally, a recording of today's call will be available by 11:30 a.m. Pacific Time this morning on our website.

該網站亦提供我們最新的 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簡報。最後，今日電話會議的錄音將於今天上午太平洋時間 11:30 前在我們網站上提供。

Now, I would like to turn the call over to Alan for his comments and first 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一季的業務重點。

Thank you, Chris, and good morning, everyone. This is a really exciting time at Lumentum. Since our last call, we have made excellent progress on our strategic goals. Despite the headwinds in the Telecom and Datacom markets in the first quarter, we returned to strong sequential revenue growth.

謝謝你，Chris，各位早安。對 Lumentum 而言，這真是一個令人振奮的時刻。自上次電話會議以來，我們在策略目標上取得了極佳的進展。儘管第一季在電信與資料通訊市場面臨逆風，我們仍回到強勁的連續季營收成長。

We rapidly ramped our 3D sensing revenue, received significant new orders for these products and made excellent progress on next-generation design-ins at numerous customers with our VCSEL and edge-emitting lasers. We also received our first high-volume order for edge-emitting lasers from an Asian-based consumer electronics customer. In April of this year -- since April of this year, we have received more than $300 million of 3D sensing customer orders, which we began to ship in earnest over the past few months.

我們迅速拉升 3D 感測營收，取得這些產品的大量新訂單，並以我們的 VCSEL 與邊射型雷射在眾多客戶端的次世代設計導入（design-in）上取得極佳進展。我們也首次收到來自一家亞洲消費性電子客戶的邊射型雷射高出貨量訂單。自今年 4 月以來，我們已收到超過 3 億美元的 3D 感測客戶訂單，並在過去幾個月開始大量出貨。

Other notable milestones include achieving production readiness on our 100G transceivers in our new Thailand factory and surpassing 20,000 units of twin TrueFlex ROADMs shipped since their introduction. These types of ROADMs are central to next-generation network architectures, and the level of shipments shows our continued leadership in this area. This is indeed an exciting time at Lumentum.

其他值得一提的里程碑包括：我們在泰國新工廠的 100G 收發器已達到量產就緒，且自雙路 TrueFlex ROADM 推出以來，累計出貨已超過 20,000 台。此類 ROADM 是次世代網路架構的核心，而出貨量水準顯示我們在此領域持續領先。對 Lumentum 而言，這確實是一個令人振奮的時刻。

During the first quarter, we shipped approximately $40 million of 3D sensing revenue. Revenue was limited by bottlenecks in equipment capacity, which have since been resolved. We've shipped more 3D sensing revenue in October than we did during the entire first fiscal quarter. We expect monthly shipments to increase throughout the end of the calendar year due to strong demand for our products. Yields to date have been consistent with our expectations. Noting that we only provide guidance one quarter at a time, we believe our 3D sensing revenue could remain at similar levels in our upcoming March quarter when compared to our second quarter, based on customer feedback and order rates.

第一季期間，我們出貨約 4,000 萬美元的 3D 感測營收。營收受限於設備產能瓶頸，而該問題目前已解決。我們在 10 月出貨的 3D 感測營收已超過整個第一個會計季度的出貨量。由於產品需求強勁，我們預期每月出貨將一路增加至今年年底。截至目前的良率符合我們的預期。請注意我們一次僅提供一季的財測；根據客戶回饋與下單速度，我們認為在即將到來的 3 月季度，3D 感測營收相較於第二季可能維持在相近水準。

Like many in the Telecom and Datacom industries, we had headwinds in the first quarter. China has been reducing inventory levels for several quarters now. As inventories decline to targeted levels, demand should increase. However, the timing of this recovery is uncertain. We are seeing increased demand from our Chinese customers on certain product lines. These include ROADMs and CFP2 Datacom transceivers. Demand for other product lines, notably coherent components, remains muted.

如同電信與資料通訊產業的許多公司，我們在第一季面臨逆風。中國已連續數季降低庫存水位。當庫存下降至目標水準後，需求應會回升。然而，復甦時點仍不確定。我們看到中國客戶在某些產品線上的需求增加。這些包括 ROADM 與 CFP2 資料通訊收發器。其他產品線（尤其是相干元件）的需求仍然疲弱。

As anticipated, demand from North America Telecom customers was down sequentially in the first quarter as these customers also look to reduce inventory levels. In the second quarter, however, we expect North American Telecom demand to increase as inventory levels are worked down. Our Datacom revenue declined by $5 million sequentially due to weaker-than-expected demand on 100G products.

如先前預期，北美電信客戶的需求在第一季較前一季下滑，因為這些客戶也在降低庫存水位。然而在第二季，我們預期北美電信需求將隨著庫存去化而增加。由於 100G 產品需求弱於預期，我們的資料通訊營收較前一季下滑 500 萬美元。

As highlighted earlier, our new Thailand factory is now production-ready for certain 100G Datacom transceivers. We believe our own factory will help with our cost competitiveness, capacity and time to volume. We will also be completing qualification of our short-reach 100G transceiver products in the second quarter, which will further expand our 100G Datacom opportunities.

如先前所強調，我們位於泰國的新工廠目前已針對部分 100G 資料通訊收發器達到量產就緒。我們相信自有工廠將有助於提升成本競爭力、產能以及達到量產規模的速度。我們也將在第二季完成短距離（short-reach）100G 收發器產品的認證（qualification），進一步擴大我們在 100G 資料通訊領域的機會。

Our commercial lasers revenue was down slightly quarter-on-quarter with an increase in kilowatt fiber lasers being offset by declines in other lasers. We have made significant progress in rectifying previously highlighted challenges in the production of our Gen3 fiber laser. We expect our fiber laser business to be on a growth trajectory over the coming quarters. In our lasers business, we recently secured some significant new orders, which has helped to drive our book-to-bill ratio to more than 1.5 to 1 for the quarter.

我們的商用雷射營收較前一季小幅下滑，因千瓦級光纖雷射的成長被其他雷射產品的下滑所抵銷。我們在修正先前提及的第三代（Gen3）光纖雷射生產挑戰方面已取得重大進展。我們預期未來幾季光纖雷射業務將走在成長軌道上。在雷射業務方面，我們近期取得一些重要新訂單，推動本季接單出貨比（book-to-bill ratio）提升至 1.5 比 1 以上。

Our photonics technologies are increasingly critical enablers of leading-edge communication, industrial and consumer applications. Demand continues to grow for bandwidth across the world's data centers and communication networks. In addition to traditional communication service providers, baud operators are increasingly driving new deployments of optical networks and submarine cables. Hyperscale data centers continue to transition to 100G.

我們的光子技術正日益成為尖端通訊、工業與消費性應用的關鍵推動者。全球資料中心與通訊網路對頻寬的需求持續成長。除傳統通訊服務供應商外，頻寬營運商也日益推動光網路與海底電纜的新部署。超大規模（hyperscale）資料中心持續轉向 100G。

We continue to make excellent progress with our ROADMs globally and we believe our new product pipeline will further our leadership position over time. In addition to capturing a large share of initial network deployments this year in China, we are now sampling new advanced ROADMs specifically designed for China's next-generation networks. We believe this positions us extremely well as the ROADM supplier of choice both in the near term as well as the longer term in China. We expect China ROADM growth will be a meaningful growth driver for Lumentum in the coming years.

我們在全球 ROADM 業務持續取得極佳進展，並相信我們的新產品管線將隨時間推進，進一步鞏固我們的領導地位。除了今年在中國初期網路部署中取得高市占外，我們目前也正在送樣專為中國次世代網路設計的新型先進 ROADM。我們相信，這使我們在中國無論短期或長期都具備成為首選 ROADM 供應商的極佳定位。我們預期中國 ROADM 的成長將在未來幾年成為 Lumentum 重要的成長動能。

Manufacturers around the world are increasingly using advanced laser-based techniques to increase productivity and precision and to enable new processes. Leaders in next-generation consumer electronics, virtual and augmented reality, as well as the automotive industry are looking to laser-based 3D sensing to enhance capabilities and enable new applications. Our investments in new products and technologies position us very well for all of these future trends.

全球各地的製造商正日益採用先進的雷射技術，以提升生產力與精準度，並促成新的製程。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，正尋求以雷射式 3D 感測來強化能力並開啟新的應用。我們在新產品與技術上的投資，使我們在這些未來趨勢上具備非常有利的定位。

At Lumentum, we are focused on accelerating the speed and scale of cloud, networking, advanced manufacturing and next-generation 3D sensing applications with our photonics technologies. Our strategy to invest in growing markets, to develop the best products and technologies and to foster close relationships with market-leading customers is succeeding and makes the future bright at Lumentum.

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。我們投資於成長型市場、開發最佳產品與技術，並與市場領先客戶建立緊密關係的策略正在奏效，也讓 Lumentum 的未來前景光明。

I will now turn it over to Aaron for more details on our financial results and our guidance for the second quarter of fiscal 2018.

接下來我把時間交給 Aaron，請他更詳細說明我們的財務結果，以及 2018 會計年度第二季的展望指引。

Thank you, Alan. Net revenue for the first fiscal quarter was $243.2 million, which increased 9.2% sequentially and declined 5.8% compared with the same period last year, (inaudible) softer Telecom demand.

謝謝你，Alan。第一個會計季度的淨營收為 2.432 億美元，較前一季成長 9.2%，較去年同期下滑 5.8%，（聽不清）電信需求較疲弱。

GAAP gross margin for the first quarter was 28.2%. GAAP operating margin was 1.1%. And GAAP diluted net income per share was $0.11. Our first quarter non-GAAP gross margin was 34%, increased 100 basis points sequentially and declined 20 basis points compared with the same period last year. Non-GAAP operating margin for the first quarter was 11.8% and increased 260 basis points sequentially. The increase in operating margin was primarily due to the 110 basis point increase in gross margin from favorable mix and also improved operating leverage from the increase in volume. Non-GAAP earnings per share was $0.43 based on a fully-diluted share count of 64.5 million and included $700,000 of interest income and a $1.5 million tax expense.

第一季 GAAP 毛利率為 28.2%。GAAP 營業利益率為 1.1%。GAAP 稀釋後每股淨利為 0.11 美元。第一季非 GAAP 毛利率為 34%，較前一季增加 100 個基點，較去年同期下降 20 個基點。第一季非 GAAP 營業利益率為 11.8%，較前一季增加 260 個基點。營業利益率的提升主要來自：產品組合有利帶動毛利率增加 110 個基點，以及出貨量增加帶來的營運槓桿改善。非 GAAP 每股盈餘為 0.43 美元，係以完全稀釋後股數 6,450 萬股計算，並包含 70 萬美元利息收入與 150 萬美元所得稅費用。

Now for some additional detail. Optical communications revenue was $207.9 million, an increase of 11% sequentially and a 5% decline compared with the same period last year. During the quarter, we significantly ramped our consumer and industrial revenue, which includes 3D sensing, while both Telecom and Datacom declined sequentially. Telecom revenue, at $110 million, declined 8% sequentially and 33% compared with the same period last year. Datacom was $45.2 million and declined 10% sequentially and increased 2% compared with the same period last year.

接著補充一些細節。光通訊營收為 2.079 億美元，較前一季成長 11%，較去年同期下滑 5%。本季我們大幅拉升消費與工業營收（包含 3D 感測），同時電信與資料通訊（Datacom）皆較前一季下滑。電信營收為 1.10 億美元，較前一季下滑 8%，較去年同期下滑 33%。資料通訊營收為 4,520 萬美元，較前一季下滑 10%，較去年同期成長 2%。

Consumer and industrial revenue, at $52.3 million, increased 217% sequentially and over 500% compared with the same period last year. The significant growth for consumer and industrial revenue came primarily from our 3D sensing ramp for consumer mobile applications.

消費與工業營收為 5,230 萬美元，較前一季成長 217%，較去年同期成長超過 500%。消費與工業營收的大幅成長，主要來自我們針對消費性行動裝置應用的 3D 感測放量。

Optical communications gross margin, at 34.7%, increased 360 basis points sequentially mainly due to the favorable mix of products as well as the sequential increase in volume for our 3D sensing products.

光通訊毛利率為 34.7%，較前一季增加 360 個基點，主要由於產品組合有利，以及 3D 感測產品出貨量較前一季增加。

Commercial lasers revenue was $35.3 million, a decrease of 1.7% sequentially, the decrease of 11% compared with the same period last year. As Alan highlighted, we've made progress on the production of our new Gen3 kilowatt fiber laser and grew fiber laser revenue by 19% sequentially, $12.9 million. During the quarter, fiber laser production was constrained due to materials and therefore we were unable to satisfy our customer demand. First quarter commercial lasers gross margin was 30% and decreased 12 percentage points primarily due to writing down excess in obsolete inventory from older generations of product. Looking forward to Q2, we expect commercial lasers revenue to increase approximately 20% with gross margin returning to the range of low- to mid-40s%.

商用雷射營收為 3,530 萬美元，較前一季下滑 1.7%，較去年同期下滑 11%。如 Alan 所強調，我們在新一代 Gen3 千瓦級光纖雷射的量產方面取得進展，光纖雷射營收較前一季成長 19%，達 1,290 萬美元。本季光纖雷射的生產受材料限制，因此我們無法滿足客戶需求。第一季商用雷射毛利率為 30%，下降 12 個百分點，主要因針對舊世代產品的過剩與呆滯庫存進行減記。展望第二季，我們預期商用雷射營收將增加約 20%，毛利率將回升至 40% 初段至中段的區間。

Operating expenses totaled $54.1 million or 22.2% of revenue compared with last quarter at $52.8 million or 23.7% of revenue. R and D expense was $32.5 million and SG and A expense was $21.6 million.

營業費用合計 5,410 萬美元，占營收 22.2%；相較之下，上季為 5,280 萬美元，占營收 23.7%。研發費用為 3,250 萬美元，銷售、一般及行政（SG&A）費用為 2,160 萬美元。

Our balance sheet remained strong, exiting the first quarter with cash and short-term investments of $532.5 million. Capital equipment additions were approximately $26 million in the first quarter. Our investments in both facility improvement and equipment to bring up our manufacturing facility in Thailand accounted for approximately $15 million of the spending.

我們的資產負債表維持強勁，第一季結束時現金與短期投資為 5.325 億美元。第一季資本設備新增投入約 2,600 萬美元。其中約 1,500 萬美元用於廠房改善與設備投資，以提升我們在泰國的製造廠產能。

Now on to our guidance for the second quarter of fiscal 2018, noting again that all projections are on a non-GAAP basis. We expect Telecom and commercial lasers revenue to increase sequentially. Additionally, our 3D sensing revenue will increase materially in the quarter. We project net revenue for the second quarter to be in the range of $345 million to $375 million with operating margin in the range of 21% to 23%, and earnings per share to be in the range of $1.05 to $1.25.

接著說明 2018 會計年度第二季的指引，再次提醒所有預測皆以非 GAAP 基礎呈現。我們預期電信與商用雷射營收將較前一季成長。此外，我們的 3D 感測營收在本季也將顯著增加。我們預估第二季淨營收介於 3.45 億至 3.75 億美元，營業利益率介於 21% 至 23%，每股盈餘介於 1.05 至 1.25 美元。

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

接下來我把電話交回給 Chris，開始問答環節。

Thank you, Aaron. I'd like to ask everyone to limit discussion to one question and one follow-up. Dan, let's begin the Q&A session.

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。Dan，我們開始問答環節。

Your first question comes from the line of Meta Marshall from Morgan Stanley.

第一個問題來自 Morgan Stanley 的 Meta Marshall。

I just wanted to kind of get any -- I know you guys mentioned having very little direction kind of out of China -- but just what is kind of the latest read that you're getting out of there from any visits or any visibility into kind of as you head into calendar year 2018, what you're expecting in that market? And maybe just kind of timelines for ROADM deployments would be helpful there.

我想大致了解一下——我知道你們提到從中國那邊得到的方向性資訊不多——但想請問你們從近期拜訪或可見度中，對那邊最新的觀察是什麼？尤其是當你們進入 2018 曆年時，對該市場的預期如何？另外，如果能談談 ROADM 部署的時間表也會很有幫助。

I think, in general, as we said in the pre- comments, there is still inventory of certain products, and I'd say mainly in the coherent components for us. Other products are, in fact, being expedited; ROADMs, for instance. I've been getting personal love notes from some of our customers in China to speed up delivery of ROADMs. So I think it's hard to say when the full recovery of everything or when the inventory will be totally burned off. But I do think they're doing a good job of reducing the inventories, and I would expect that calendar 2018 to be up from 2017.

我想整體而言，正如我們在前面評論中所說，某些產品仍有庫存，我們這邊主要是在相干（coherent）元件。但其他產品其實正在加速出貨；例如 ROADM。我甚至收到一些中國客戶親自寫來的「催貨信」，希望我們加快 ROADM 的交付。所以很難說何時能全面復甦，或庫存何時能完全消化完畢。但我確實認為他們在降低庫存方面做得不錯，我預期 2018 曆年會比 2017 年成長。

Okay. And then, just a follow-up question. There has obviously been a lot of reports about kind of breakage issues in the assembly of 3D sensing modules. And just to get a sense of -- do you believe that you'll have to kind of over-ship into kind of components or module builders in this cycle to kind of make up for that breakage? Or are those kind of reports ill -- or not correct at this time?

了解。接著追問一個問題。顯然有很多報導提到 3D 感測模組在組裝上有破損（breakage）問題。想請教你們的看法——你們是否認為在這一輪週期中，為了彌補破損，你們需要對元件或模組組裝廠「超額出貨」？或者那些報導其實是——或目前並不正確？

Yes, Meta. We can't comment on our customers, our customers' yields or production volumes. It's just not appropriate. So I'd prefer not to comment at this time.

是的，Meta。我們無法評論我們的客戶、我們客戶的良率或產量。這樣做並不恰當。因此我目前傾向不予評論。

Your next question comes from the line of Michael Genovese from MKM Partners.

您的下一個問題來自 MKM Partners 的 Michael Genovese。

I have a few questions. Just first of all, on the quarter itself. Just specifically in the optical comms business, was it there, or was it in 3D sensing, or was it across both, where things were just a little bit lighter than what you expected going into the quarter, coming out of the quarter?

我有幾個問題。首先，關於本季本身。具體來說，在光通訊業務方面，是出現在那裡，還是在 3D 感測，或是兩者都有，導致實際表現比你們在進入本季時的預期稍微疲弱？

Yes. So this is Aaron, Michael. In terms of softness, so again, as we had indicated on the prepared remarks, there had been some inventory management from our customers, especially on the Telecom side. And so in terms of the softness, a lot of it was in the communications space.

是的。Michael，我是 Aaron。就疲弱而言，如同我們在事先準備的發言中所提到的，我們的客戶進行了一些庫存管理，特別是在電信端。因此就疲弱的部分而言，主要是在通訊領域。

Yes. But I think as we went into the quarter in our last earnings call, we had expected to be able to produce more 3D sensing. And as I talked about, we did have some bottlenecks that have been resolved. And so through the first quarter, the demand was certainly stronger than what we had produced, but we weren't able to get the product out that we had expected. And as I said also, that in the month of October we shipped more than the entire first fiscal quarter. So those bottlenecks are resolved and I think we're in pretty good shape with respect to ongoing production of our 3D products.

是的。但我認為，在我們進入本季、也就是上一次財報電話會議時，我們原本預期能夠生產更多 3D 感測產品。如我所說，我們確實遇到了一些瓶頸，但已經解決。因此在第一季期間，需求確實比我們的產出更強，但我們無法如預期把產品出貨。另外我也提到，10 月我們的出貨量超過了整個第一個會計季度。所以這些瓶頸已經排除，我認為就我們 3D 產品的持續生產而言，目前狀況相當不錯。

So was 3D sensing about $40 million in the quarter? A little bit less? A little bit more?

所以本季 3D 感測大約是 4,000 萬美元？少一點？多一點？

It was $40 million.

是 4,000 萬美元。

Yes, okay. And can you talk about the gross margin trajectory there? I mean do they start lower and get better going into the next quarter and the quarter beyond?

好的。那你能談談那邊的毛利率走勢嗎？我的意思是，它們是否一開始較低，然後在下一季以及再下一季變得更好？

Yes. So, Michael, in terms of the gross margins related to consumer and industrial, it's above our corporate average. So in terms of the production yields, it's basically at our expectation. So in terms of starting low, ending higher, there hasn't been anything noteworthy there than what we'd expect.

是的。Michael，就消費與工業相關的毛利率而言，它高於我們公司的平均水準。就生產良率而言，基本上符合我們的預期。因此就一開始較低、後續走高來說，並沒有任何超出我們預期、值得特別一提的情況。

Okay. Last question for me. I mean you said that, I guess, in March we should think about a consistent revenue level in 3D sensing with December. What about in June? You've got this new Asian edge-emitting customer coming in, but I assume your primary initial customer will be down in June. So just sort of in big -- taking broad swaths at it, since it's not guidance, how should we think about June for that business?

好的。我最後一個問題。你提到，我想在 3 月我們應該把 3D 感測的營收水準視為與 12 月一致。那 6 月呢？你們有一個新的亞洲邊射型客戶加入，但我假設你們主要的初始客戶在 6 月會下滑。所以大方向來看——既然這不是財測——我們應該如何看待 6 月那個業務？

Yes. So we typically don't provide long-term guidance, Michael. And in terms of the customer orders that Alan did mention in the prepared remarks, so it's exciting for us that we've received something with the edge-emitting technology. But in terms of what exactly those volumes will look like in the June quarter, we're not prepared to really comment on that at this time.

是的。Michael，我們通常不提供長期指引。至於 Alan 在事先準備的發言中提到的客戶訂單，我們很興奮能收到與邊射型技術相關的訂單。但就 6 月季度的實際出貨量會是什麼樣子而言，我們目前還不準備對此做出評論。

Okay. Final clarification, actually here. Just in terms of your guidance for 2Q versus 1Q, I mean should we think that the base business, lasers and optical comms, are flat and that any sequential change is entirely driven by 3D? Or are there puts and takes in the base business as well?

好的。最後再澄清一下。就你們對第 2 季相較第 1 季的指引而言，我們是否應該認為基礎業務——雷射與光通訊——大致持平，而任何季對季變化完全由 3D 驅動？還是基礎業務本身也有增減因素？

Yes. I think, as we said in the prepared remarks, we expect lasers to be up approximately 20% sequentially from Q1 to Q2 and, of course, bonding recovery and gross margins back to where we expect lasers to be. We also expect Telecom to be up from Q1 to Q2. So it's not all coming from growth in 3D sensors.

是的。我想，如同我們在事先準備的發言中所說，我們預期雷射從第 1 季到第 2 季季增約 20%，當然也包括鍵合（bonding）復原，以及毛利率回到我們對雷射業務的預期水準。我們也預期電信業務會從第 1 季到第 2 季成長。所以並不是全部都來自 3D 感測器的成長。

Okay, so it's -- final -- I'm sorry for so many questions. I'll pass it after this, I promise. But it's a pretty big range on the revenue guide. Is that -- is the range primarily attributable to 3D? And what would determine whether we are at the bottom or the top of the range?

好的，所以——最後——抱歉我問了這麼多問題。我保證問完這個就交棒。但你們的營收指引區間相當大。這個區間主要是因為 3D 嗎？而什麼因素會決定我們落在區間的下緣或上緣？

I think that the range is big because the increase from Q1 to Q2 was big and pinpointing the amount of growth between Q1 and Q2, there is uncertainty on the downside as well as on the upside. So our ability to produce 3D sensing, our level of China's ROADM deployments picking up, and North America; I think there is variability in all of that and that's why we've tried to factor it into the guidance for revenue.

我認為區間之所以大，是因為從第 1 季到第 2 季的增幅很大，而要精準界定第 1 季到第 2 季之間的成長幅度，在下行與上行兩方面都存在不確定性。因此，我們生產 3D 感測的能力、中國 ROADM 部署回升的程度，以及北美市場；我認為這些都有變動性，這也是我們試圖把它納入營收指引的原因。

Your next question comes from the line of Patrick Newton with Stifel.

您的下一個問題來自 Stifel 的 Patrick Newton。

Just to put a fine point on 3D sensing, given all the puts and takes; Datacom, it sounds like you're implying is down, Telecom up, lasers up. And then midpoint of guidance, I'm getting to about $145 million, plus or minus, in 3D sensing revenue for the December quarter. I wanted to make sure that that's ballpark.

為了更精準地聚焦在 3D 感測，考量所有增減因素；聽起來你們暗示 Datacom 下滑、Telecom 上升、雷射上升。以指引中位數來看，我推算 12 月季度的 3D 感測營收大約是 1.45 億美元，上下浮動一些。我想確認這是否大致在合理範圍。

Well, I think we're going to avoid giving guidance specific to the product lines, but I think you can take my comment about October revenue for 3D sensing being larger than the entirety of Q1 and extrapolate from there.

嗯，我想我們會避免針對各產品線提供具體指引，但你可以根據我提到的：10 月 3D 感測的營收大於整個第 1 季，並以此作延伸推估。

Great. And then I guess, given your commentary on the March quarter being similar to December quarter levels, is there any concern on your end of inventory over-builds? And is there any assumption built in there on a competitive landscape? It definitely seemed to indicate that you're not anticipating any material uptick of supply from competitors.

很好。那接著，考量你們提到 3 月季度會與 12 月季度水準相近，你們這邊是否擔心庫存過度堆積？另外，那裡面是否也包含對競爭態勢的任何假設？這似乎明確表示你們不預期競爭對手的供給會有任何實質性的上升。

I'd prefer not to comment about competitors because I think we're expecting competitors to come online and produce some product. I can tell you that I'm not concerned about short-term inventory buildup, given the pressure that we're under and the constant help that we're getting from our customers to produce more. So I think just directionally the March quarter seems like it's going to be in line with where we are in the December quarter from an output and demand standpoint 3D sensing.

我傾向不評論競爭對手，因為我認為我們預期競爭對手會上線並生產一些產品。我可以告訴你，就短期庫存堆積而言我並不擔心，考量到我們承受的壓力，以及客戶持續協助我們提升產出。因此就方向性來看，從 3D 感測的產出與需求角度，3 月季度看起來會與 12 月季度大致一致。

Okay. And just one more if I may, I guess for Aaron, is just on the margin profile of 3D sensing. You talked about how yields are progressing nicely. I think it was two quarters ago you guys had publicly stated that you anticipated margins to be greater than 50%. So I would assume that that is still the case. And I think one can infer, backing in, that we should anticipate in the December quarter that your gross margin would be north of 40%. Or are those all fair assumptions?

好的。如果可以我再問一個，應該是給 Aaron：關於 3D 感測的毛利結構。你提到良率進展良好。我記得大約兩季前你們曾公開表示預期毛利率會高於 50%。所以我假設目前仍是如此。而且我想可以反推，在 12 月季度你們的整體毛利率應該會超過 40%。這些假設都合理嗎？

So in terms of the specific margin for 3D sensing or the application, we can't really comment specifically on the amount or the percentage, Patrick. But in terms of -- it is above our corporate average. And for the December quarter, in terms of what's implied here with our guidance, yes, in terms of the 40% range, in terms of somewhere around the midpoint, it's a fair assumption based upon --

因此，就 3D 感測或該應用的特定毛利而言，我們無法就金額或百分比做出具體評論，Patrick。但就整體而言——它高於我們的公司平均水準。而就 12 月季度來看，依據我們的指引所隱含的內容，是的，就約 40% 的區間、接近中位數附近來看，這是一個合理的假設，基於——

Your next question comes from the line of Alex Henderson with Needham and Company.

下一個問題來自 Needham and Company 的 Alex Henderson。

I was hoping we could go into a couple of sort of trajectory thoughts on 3D sensing. Are your orders growing faster as you look into the first quarter? Do you expect your orders to grow faster than your production? In other words, will you be able to work down backlog or will you be sustaining backlog as we come out of the first quarter? And is it possible that your backlog might actually increase as a result of the time of the ramp of some of those products?

我希望我們可以談談關於 3D 感測的一些趨勢想法。當你們展望第一季時，訂單是否成長得更快？你們預期訂單成長會快於產量成長嗎？換句話說，第一季結束後你們能否消化積壓訂單，還是會維持積壓水位？另外，是否有可能因為某些產品爬坡（ramp）時程的關係，反而導致你們的積壓訂單增加？

I would say we don't expect any major change in our backlog. The only variable, I think, is really where and when we start ramping in a meaningful way on the China-based consumer electronics customer that we mentioned in the pre- comments.

我會說我們不預期積壓訂單會有任何重大變化。我認為唯一的變數，主要在於我們在先前評論中提到的那家中國消費性電子客戶，我們何時、以及在哪裡開始以有意義的方式進行放量爬坡。

And so do you have any sense of when that would feather in? Would that be something you would be feathering in, in 2Q-ish timeframe? Or is that more in the -- beyond that? How should we be thinking about the timing around that?

那你們對於何時會逐步導入有任何概念嗎？這會是在第二季左右逐步導入嗎？還是更晚——超過那個時間點？我們應該如何看待相關時程？

Well, I think we just wanted to add a proof point about the broad customer base and engagement that we have. I think -- that's one of many that we're working with, and I think that you can expect that our customer base to continue to broaden through the calendar year and adding multiple customers by the end of calendar '18 to our 3D sensing portfolio.

嗯，我想我們只是想補充一個證據點，說明我們擁有廣泛的客戶基礎與合作互動。我想——那只是我們正在合作的眾多客戶之一；而且我認為你可以預期，在整個曆年期間，我們的客戶基礎會持續擴大，並在 2018 年曆年年底前，為我們的 3D 感測產品組合新增多家客戶。

So if I were to look at the additional new customers coming on stream over the course of '18, would that imply a continued sequential demand growth over time as those feather in? Is that the right way to think about it?

所以如果我看 2018 年期間陸續上線的新增客戶，是否意味著隨著這些客戶逐步導入，需求會隨時間持續呈現逐季成長？這樣理解對嗎？

Yes. So, Alex, I think it could imply that. And so as Alan had mentioned, having this initial edge-emitting customer as well coming in with orders will bode well for a good, healthy 2018, calendar '18. And the seasonality of these types of consumer applications do have peaks and valleys, but in terms of what we're doing and seeing at the outset of these programs could take away some of those -- the lumpiness in '18 and '19, the way we look at it. It could be a trajectory that's upward.

是的。所以，Alex，我認為確實可能意味著如此。正如 Alan 提到的，這位初期的邊射型（edge-emitting）客戶也開始帶來訂單，將有助於 2018 年（曆年 '18）維持良好且健康的表現。這類消費性應用的季節性確實會有高峰與低谷，但就我們在這些專案初期所做與所見而言，可能會在我們的觀點下，減少 2018 與 2019 年的某些——波動性（lumpiness）。它可能是一條向上的成長軌跡。

And just on the pricing side for these products, as I understand it, your pricing is kind of locked in through calendar '18. Is that correct?

另外就這些產品的定價而言，據我了解，你們的價格在 2018 年曆年期間大致是鎖定的。這樣對嗎？

We have price commitments for a part of '18. And certainly for all of the orders that we have, those are certainly firm. And I'd say that we're in the midst of negotiating with many of our customers for the back half of '18 as well as into '19.

我們對 2018 年的一部分期間有價格承諾。當然，對於我們已取得的所有訂單，其價格條件都是確定的。我會說，我們也正在與許多客戶就 2018 年下半年以及延伸到 2019 年進行談判。

Okay. Two last questions, if I could. Can you just tell us whether ROADMs were flat, down or up in the most recent quarter and whether you're expecting ROADMs to be up again in the December quarter?

好的。如果可以的話，最後兩個問題。你能否告訴我們，最近一季的 ROADM 是持平、下滑還是上升？以及你們是否預期 12 月季度 ROADM 會再度上升？

Yes. They were down in the September quarter, expecting them to pick back up in December.

是的。它們在 9 月季度是下滑的，預期在 12 月會回升。

And then on the Datacom side, can you give us a little bit more granularity what happened there? Is it a function of pricing or is it a function of volume? I know you said the 100 gig was a little weaker than you had expected. But can you give us some sense of where that weakness metastasized?

然後在 Datacom（資料通訊）方面，你能否提供更細的說明，當時發生了什麼？是定價因素，還是出貨量因素？我知道你提到 100G 稍微比你們預期弱一些。但你能否讓我們了解一下，這個疲弱主要擴散到哪些地方？

Well, I think it's a combination, Alex. I think certainly we could sell more 100 gig Datacom if we dropped our pricing. And so I think from our perspective, the client side of the Telecom business is good. Margins are fine. Pricing is more rational. Hyperscale, as I continue to say, is pretty tough. And so I'd say it's a combination of us choosing not to lower the prices for hyperscale until we have our next-generation product ready. And that will be in calendar '18. And we're getting orders as customers need product for hyperscale-type stuff. But we're pretty comfortable with the client side on Telecom, both on CFP2 LR4 as well as QSFP28 LR4.

嗯，我認為是多種因素的組合，Alex。我想如果我們降低價格，確實可以賣出更多 100G Datacom 產品。因此從我們的角度來看，電信業務中的客戶端（client side）表現良好。毛利沒問題。定價也更趨理性。而超大規模（hyperscale），正如我一直說的，確實相當艱難。所以我會說，這是我們選擇在下一代產品準備好之前，不去為 hyperscale 降價的結果之一。而那會在 2018 年曆年發生。當客戶在 hyperscale 類型需求需要產品時，我們仍然會收到訂單。但我們對電信客戶端這一塊相當有信心，無論是 CFP2 LR4 或 QSFP28 LR4。

Your next question comes from the line of Joseph Wolf with Barclays. Your next question comes from the line of Troy Jensen with Piper

下一個問題來自 Barclays 的 Joseph Wolf。下一個問題來自 Piper 的 Troy Jensen

I understand the pricing on the VCSELs are fixed here for the near term, but going forward, can you talk about what you think ASP erosion is going to be in that product category? I know for most of us we assume kind of, what, 12% to 15% annual erosion for optical comm. Do you think that the VCSEL business will be more or less than that?

我理解 VCSEL 的定價在短期內是固定的，但往後看，你能談談你認為該產品類別的 ASP（平均銷售單價）侵蝕會是多少嗎？我知道多數人對光通訊的假設大概是每年 12% 到 15% 的侵蝕。你認為 VCSEL 業務會高於還是低於這個水準？

You know, Troy, I think it's hard to say at this point in time because we have a myriad of different customers buying at the chip level or subassembly level. So ASPs will fluctuate by customer. But if you're talking about pure average selling price takedown for a given customer, I think it's a matter of demand and supply and how that plays out over the short term. And I think, at least for the foreseeable future, there is a stronger demand than there is supply and so therefore prices won't come down as much as one would expect.

你知道的，Troy，我認為在目前這個時間點很難說，因為我們有各式各樣的客戶，可能在晶片層級或次組件（subassembly）層級採購。因此 ASP 會因客戶而波動。但如果你談的是針對某一特定客戶的純粹平均售價下調幅度，我認為這取決於需求與供給，以及短期內如何演變。而我認為至少在可預見的未來，需求強於供給，因此價格下滑幅度不會像一般人預期的那麼大。

Although, these are large customers that have a lot of purchasing power so they -- I would expect the prices to come down. But at the same time, I do expect our costs to come down as our volumes go up. And we pre-negotiated that with some of our supply chain to make sure that as we go up in volume, our costs come down so that we don't impact our margins as we look out quarters and years.

不過，這些都是採購力很強的大客戶，所以——我預期價格仍會下來。但同時，隨著我們的出貨量增加，我也預期成本會下降。而我們已與部分供應鏈事先談妥，確保當我們的量放大時，成本能同步下降，讓我們在展望未來幾季與幾年時，不會影響毛利。

Yes, okay. And just a follow-up. You guys made a comment a 1.5 book-to-bill for the industrial lasers. Was that all industrial lasers? Was that just fiber lasers? And what drove such a big growth in the bookings?

是的，好的。再追問一下。你們提到工業雷射的 book-to-bill（接單出貨比）是 1.5。那是所有工業雷射都如此嗎？還是只有光纖雷射？是什麼驅動了訂單（bookings）如此大幅的成長？

It was a combination of both our solid-state lasers as well as our fiber lasers. I think right now the semiconductor industry is driving a strong demand for our micro-machining lasers. And as Aaron talked about, our inability to meet our fiber laser ramp demand had some pent-up fiber laser orders that we're trying to get through in the next couple of quarters. But it's strong demand and that's why we believe that the trajectory of our lasers business overall will be going up over the next few quarters.

這是我們固態雷射以及光纖雷射兩者共同作用的結果。我認為目前半導體產業正在帶動對我們微加工雷射的強勁需求。而且如 Aaron 所提到的，我們無法滿足光纖雷射擴產爬坡需求，導致累積了一些待交付的光纖雷射訂單，我們正努力在接下來幾個季度把它們消化掉。但需求確實強勁，這也是為什麼我們相信未來幾個季度我們整體雷射業務的走勢將會向上。

Your next question comes from the line of Simon Leopold with Raymond James.

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

First, I wanted to maybe ask an earlier question in a different way, and trying to get a better understanding of how you get paid or when you get paid on the 3D VCSEL business. Do you get paid based on what you ship to the module assemblers? Or do you get paid based on what actually ends up ultimately in a phone? Is that something you could help us understand?

首先，我想用不同的方式問一個先前的問題，試著更清楚了解你們在 3D VCSEL 業務上是如何收款、或是在什麼時點收款。你們是依據出貨給模組組裝廠的數量來收款嗎？還是依據最終實際裝進手機的數量來收款？你們能否協助我們理解這點？

Yes. We have terms with our customers and not specific to 3D sensing, but across the board, that we get paid a certain amount of days after either we ship it or after they receive at their dock or their country. So this is no different than our normal business and how we transact with our customers.

是的。我們與客戶有付款條款，且不僅限於 3D 感測，而是全面適用：我們會在出貨後或他們在碼頭、或在其國家收貨後的若干天收到款項。所以這與我們一般的業務並無不同，也就是我們與客戶交易的一般方式。

So to just clarify that. So if the yield falls out somewhere down the supply chain and it's not because of the VCSEL failing, you still get paid on that product. Correct?

那我再確認一下。所以如果良率在供應鏈某個環節出問題，但不是因為 VCSEL 失效，你們仍然會就該產品收款。對嗎？

Yes.

是的。

Great. Thank you for that clarification. I just want to come back on the ROADM business. You provided a little bit of commentary. I have a vague recollection in that you were somewhat capacity-constrained when that business was running in sort of the 60-plus million quarterly level. Just want to get an understanding of what your thoughts are in terms of capacity needs for that business.

很好。謝謝你釐清這點。我想再回到 ROADM 業務。你們提供了一些評論。我隱約記得，當該業務在單季約 6,000 多萬美元的水準運行時，你們的產能似乎有些受限。我想了解你們對該業務產能需求的看法。

Yes. I think you're right. Your recollection was good. We were at 60-plus million a quarter a few quarters back and it was tight. I think we've been adding capacity, but more importantly, improving the yields of both our WSS modules as well as our blades. So I think we're comfortable with where we are from a capacity standpoint as China ramps up, and I think it will ramp up in a meaningful way in '18. So I think we have capacity to far surpass the 60 million a quarter. I think it's just a matter of when that demand comes to fruition. And every indication is from China that things are looking pretty good there.

是的。我想你說得對。你的記憶很準確。幾個季度前我們單季在 6,000 多萬美元時確實很吃緊。我想我們一直在增加產能，但更重要的是，同時提升我們 WSS 模組以及刀片（blades）的良率。因此，從產能角度來看，隨著中國需求爬坡，我們對目前的狀況感到放心，而且我認為它會在 2018 年以相當顯著的方式成長。所以我認為我們的產能足以遠遠超過單季 6,000 萬美元。我想只是需求何時真正落地的問題。而從中國傳來的各項跡象顯示，那邊的情況看起來相當不錯。

Great. And just one last one. You talked about introducing some new products for Datacom. Are those products oriented towards the QSFP28, PSM4 or CWDM opportunities? And if so, are they non-hermetic platforms basically targeting the very low-cost part of the market or some other form factor?

很好。最後一個問題。你提到為 Datacom 推出一些新產品。這些產品是針對 QSFP28、PSM4 或 CWDM 的機會嗎？如果是的話，它們是否是非氣密（non-hermetic）平台，基本上鎖定市場中非常低成本的區段，或是其他外形規格？

Yes. I'd say that the products we're introducing both this quarter as well as in calendar '18 are both CWDM4 non-hermetic type of low-cost platforms as well as our short-reach VCSEL-based SR4; so from 100 meters to 300 meters, using parallel VCSEL arrays for 100 gig within the data center. So those are the products we're introducing in the short term. We have cost reductions even on QSFP28 LR4s. So all new products are QSFP-based and we've got a broad portfolio there.

是的。我會說，我們在本季以及 2018 年曆年推出的產品，包括 CWDM4 的非氣密、低成本平台，以及我們以 VCSEL 為基礎的短距離 SR4；也就是在資料中心內，使用平行 VCSEL 陣列來實現 100G，距離從 100 公尺到 300 公尺。這些是我們短期內要推出的產品。我們甚至也在 QSFP28 LR4 上做成本降低。所以所有新產品都是以 QSFP 為基礎，我們在那裡有相當廣的產品組合。

We are working on 400 gig at the same time and we're very pleased with the progress we're making there. But again, that's probably more of a 2019 meaningful contribution to our revenue.

我們同時也在開發 400G，而且對目前的進展非常滿意。但同樣地，那可能要到 2019 年才會對我們營收做出較有意義的貢獻。

Your next question comes from the line of Mark Kelleher with D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Mark Kelleher。

I just wanted to go back to the fiber lasers for a second. You said that there was some constraint due to some materials issues there. Can you size that? Can you just kind of just give us an indication what that might have been had you not had that issue?

我想再回到光纖雷射這塊問一下。你提到那裡因為一些材料問題而受到限制。你能量化一下嗎？也就是說，如果沒有那個問題，你們大概會是什麼情況，能否給我們一些指引？

Yes. So in terms of the fiber laser production issues that we've had, we brought out our Gen3 version a few months ago and in terms of trying to ramp it, we did have some constraints on specific materials so we didn't have all of the equivalent sets of materials. In terms of what Alan had said in the prepared remarks, our book-to-bill was 1.5 to 1. So we did have more than just a few million dollars that we left on the table.

可以。就我們遇到的光纖雷射生產問題而言，我們幾個月前推出了第三代（Gen3）版本，在嘗試拉升產量時，確實在某些特定材料上受到限制，因此我們沒有取得所有等效的一整套材料。就 Alan 在事先準備的發言中所說，我們的接單出貨比（book-to-bill）是 1.5 比 1。因此，我們錯失的金額不只是幾百萬美元而已。

Your next question comes from the line of Doug Clark with Goldman Sachs.

下一個問題來自 Goldman Sachs 的 Doug Clark。

I was just curious, to the extent that you'll comment, on kind of the economics or ASPs of an edge-emitter for 3d sensing versus what you're seeing VCSELs today, if it's kind of above or below and by how much.

我只是好奇，在你們願意評論的範圍內，關於用於 3D 感測的邊射型（edge-emitter）相較於你們目前看到的 VCSEL，在經濟性或 ASP（平均銷售單價）方面大概如何？是更高還是更低？差距大概多少？

Well with edge-emitters, we actually do, in most cases, a small subassembly and put a bare chip onto a carrier and burn it in and test it at that level. So in general, I would say it's probably the same to a little bit higher ASPs per unit than we get for VCSELs where we sell typically, today, at the bare die level. Margins should still be above corporate average.

嗯，對於邊射型，我們實際上在多數情況下會做一個小型次組件，把裸晶（bare chip）貼裝到載板上，並在該層級進行燒機與測試。所以整體而言，我會說每單位的 ASP 大概與 VCSEL 相當或略高一些；而 VCSEL 我們通常在今天是以裸晶層級出售。毛利率仍應高於公司平均水準。

Okay, great. That was really helpful. And then you mentioned $300 million in orders. Based on your comments, I just wanted to make sure that it's fair to assume that a vast, if not all, of that -- a vast majority, if not all, of that is coming from kind of the current large customer today or if there's a component that's other new products that are on the come.

好的，很好。這非常有幫助。另外你提到 3 億美元的訂單。根據你的評論，我想確認一下：是否可以合理假設其中絕大部分（如果不是全部）都來自目前現有的大客戶，或者其中是否有一部分來自其他即將推出的新產品？

Yes. We'd prefer not to answer specific customer order rates and things like that.

是的。我們希望不要回答特定客戶的訂單速率或諸如此類的細節。

Okay. And then, one on Datacom. Would you comment on how large QSFP28 was in terms of revenues in the quarter? I believe last quarter it was around $24 million.

好的。再問一個 Datacom 的問題。你們能否評論一下本季 QSFP28 的營收規模有多大？我記得上季大約是 2,400 萬美元。

Yes. It was around $24 million last quarter. Q1 was a tiny bit over $16 million.

是的。上季大約是 2,400 萬美元。第一季則是略高於 1,600 萬美元。

And I guess to ask a little bit more about that, the drop off. So you talked about pricing and price discipline there. Is it you're just not participating in certain wins because of pricing? Or was there actually a pause in demand by any of the hyperscale or customer bases?

那我再追問一下關於下滑的原因。你提到定價以及價格紀律。是因為價格因素，你們不參與某些得標案（wins）嗎？還是說，某些超大規模客戶或客戶群的需求其實有暫停？

So there's a tiny bit of both. So you can recall that over the last couple of quarters, we had built up a lot of LR4 and CWDM backlog as we were fulfilling all of our CFP2 backlog. And that's because both products share the same production lines or facilities. In terms of what we saw in Q1, the dynamics of the drop off here was tied to both our unwillingness to go and drop price to go take a lot of volume, and then also there was a tiny bit of price erosion in some of the different business that we did fulfill as well as (inaudible).

所以兩者都有一點。你可以回想一下，在過去幾個季度，我們在履行所有 CFP2 積壓訂單的同時，累積了大量 LR4 和 CWDM 的積壓訂單。這是因為這兩種產品共用相同的生產線或製造設施。就我們在第一季看到的情況而言，這裡下滑的動態同時與我們不願意為了拿到大量出貨而降價有關，另外我們實際履行的部分不同業務也出現了些微的價格侵蝕，以及（聽不清）。

Yes. But I'd say it's a mix. Especially in the hyperscale, the demand is not as great as it was advertised to be and that makes pricing dynamics even tougher. So I'd say the consumption of QSFP28s in the hyperscale was down from expectations of 6 months ago and we didn't chase down the price.

是的。但我會說這是混合因素。尤其是在超大規模客戶那邊，需求沒有先前宣稱的那麼強，這讓定價動態更艱難。所以我會說，超大規模客戶對 QSFP28 的消耗量低於 6 個月前的預期，而我們沒有去追著降價。

Your next question comes from the line of Richard Shannon with Craig-Hallum.

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

Maybe a first couple quick ones on 3D sensing. Alan, can you state whether you're going to be able to ship to all of your customers' needs for the December quarter or not?

先問幾個關於 3D 感測的快速問題。Alan，你能否說明你們在 12 月季度是否能夠滿足所有客戶需求並出貨？

No.

不能。

Okay. That's helpful to know. Also in 3D sensing, the $300 million of orders, is that, just to clarify, does that go through the end of the December quarter or is that farther out?

好的。這樣就很清楚了。另外在 3D 感測方面，那 3 億美元的訂單，為了釐清一下，是到 12 月季度末為止，還是更往後？

It's further out.

更往後。

Further out, okay. Can you state how far your orders are going for 3D sensing currently?

更往後，好。你能說明目前 3D 感測的訂單大概排到多遠嗎？

Well, I think that most of those orders have request dates between now and early in the March quarter. The lead time for the product, it's almost a quarter, so would imagine that as we get within a quarter of the end of January, that those are the orders we're getting now.

我想這些訂單大多數的要求交期落在現在到 3 月季度初之間。這個產品的交期幾乎接近一個季度，所以我會想像，當我們進入 1 月底前一個季度的時間範圍時，那些就是我們現在正在接到的訂單。

Got it. Okay, thank you for that. A couple more quick questions. On the topic of ROADMs in China, I couldn't figure out whether you're trying to imply something in your answers to some prior questions here. But do you have any expectations of timing as to when we see larger deployments of, I guess, the current ROADMs or the next-generation ROADMs that you're excited about?

了解。好的，謝謝。再問幾個快速問題。關於中國的 ROADM，我不太確定你在前面回答一些問題時是否在暗示什麼。不過，你對於何時會看到更大規模的部署——我想是指目前這一代 ROADM 或你們很看好的下一代 ROADM——在時程上有任何預期嗎？

Yes. I think we still sell a substantial number of ROADMs even today that go into China, but are shipped out of China as our customers are winning business outside of China. I'd say that we are deploying ROADMs in China today. It's not massive. But I'd say that they're gearing up for it to be a meaningful part of our revenue growth expectations in calendar '18.

有的。我認為即使在今天，我們仍然銷售相當數量的 ROADM，最終與中國相關，但由於客戶在中國以外贏得業務，因此是從中國以外出貨。我會說我們今天就在中國部署 ROADM。規模不算巨大。但我會說他們正在為此做準備，讓它在 2018 年曆年成為我們營收成長預期中有意義的一部分。

Okay. But you don't have an expectation of more specific timing than that?

好的。但你沒有比這更具體的時程預期嗎？

If I were to tell you that, I'd be making something up.

如果我告訴你，我就是在瞎編。

Okay. Then don't do that. That's fair. Last quick question for me. Can you help us -- an earlier question was talking about the ASPs for the edge-emitter lasers for other 3D sensing applications. Can you give us a sense of the scale, the unit volumes of potential applications here? Obviously, it's lower than mobile is. But can you give a sense of what that might be?

好的。那就別那樣。這很公平。我最後一個快速問題。你能幫我們——先前有個問題談到用於其他 3D 感測應用的邊射型雷射（edge-emitter lasers）的 ASP。你能否讓我們了解一下這些潛在應用的規模、也就是單位出貨量大概會是多少？顯然會比手機低。但你能給個大概的量級嗎？

Well just for clarification, the order we talked about in the script was edge-emitters for mobile devices and a mobile customer in Asia. So these could be of similar scale to other large consumer electronics customers.

先澄清一下，我們在講稿中提到的那筆訂單，是用於行動裝置的邊射型雷射，客戶是一家亞洲的行動裝置客戶。所以其規模可能與其他大型消費性電子客戶相近。

Your next question comes from the line of Tim Savageaux with Northland Capital Market.

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

I have a question and a follow-up. I will eschew the steam-of-consciousness approach. The first question is on the subject of consolidation within the optical communications sector. Given a couple of things: one, it looks like you're going to have a 40% customer here in the December quarter and that's a fair bit of concentration and I wonder your views toward managing that over time. And two, you've obviously got a currency that's relatively strong. I'm wondering if you might be able to kind of update your views on, especially as you reference pricing in 100 gig Datacom kind of competition across the board, on Lumentum's kind of viewpoint and interest in consolidation within the optical communications sector.

我有一個問題和一個追問。我會避免採用意識流的方式。第一個問題是關於光通訊產業內的整併。基於幾點：第一，看起來你們在 12 月季度會有一個占比 40% 的客戶，這種集中度相當高，我想了解你們對於長期如何管理這件事的看法。第二，你們顯然有一個相對強勢的貨幣。我想請你更新一下你們的看法，特別是你提到 100G Datacom 的定價競爭幾乎全面存在，關於 Lumentum 對光通訊產業整併的觀點與興趣。

Sure. Well let me address your comment about customer concentration. I think anytime you launch a new technology, you have a lead customer. But I feel very, very comfortable with where we are broadening that customer base for 3D sensing, both in the mobile application space as well as AR/VR and, in a few years, autonomous vehicle. So I'm very comfortable with where we are with regard to that.

當然。我先回應你對客戶集中度的評論。我認為每當你推出一項新技術，都會有一個領先客戶。但我對於我們正在擴大 3D 感測客戶基礎的進展感到非常、非常放心，涵蓋行動應用領域以及 AR/VR，並且在幾年後也會延伸到自動駕駛車。所以在這方面我很放心。

As far as consolidation in the industry, as I've said all along, consolidation is a good thing. I think you have to also have a willing buyer and a willing seller. And we'll see how things go out. We talk about it all the time and we determine when is the right time and what is the right target. But at this point in time, we don't have anything really to comment on, other than to say that consolidation would be good.

至於產業整併，正如我一直以來所說，整併是好事。但你也必須同時有願意的買方與願意的賣方。我們會看看事情如何發展。我們一直在討論，並判斷何時是合適的時機、以及什麼是合適的標的。但就目前而言，我們沒有什麼可以評論的，除了說整併會是好事。

Okay. And my follow-up really is with regard to potential on the 3D sensing side, how you expect kind of unit volumes, pricing and competition to combine to impact your market opportunity going forward. Which is to say, at least what we tend to hear is expectations for significant volume increases at your lead customer as 3D content increases and moves to other devices. Is that consistent from your point of view? And as you look at mixing in, you mentioned pricing for the back half of the year. I don't know. Maybe you could relate 3DS, 3D sensing pricing trends to web-scale Datacom pricing trends and tell us which is worse or which is better. But as you manage those factors, and you mentioned new competitors coming in as well, do you expect to be able to kind of grow your business with your main customer from your kind of current 100% share level even considering increased unit volumes when we factor in pricing and competition?

好的。我的追問主要是關於 3D 感測這邊的潛力，你預期單位出貨量、定價與競爭會如何結合並影響你們未來的市場機會。也就是說，至少我們常聽到的說法是：隨著 3D 內容增加並擴展到其他裝置，你們的領先客戶預期會有顯著的出貨量成長。這是否與你們的觀點一致？另外你提到下半年定價，我不確定——也許你可以把 3DS、3D 感測的定價趨勢與網路規模（web-scale）Datacom 的定價趨勢做個對照，告訴我們哪個更糟或哪個更好。

Well, I'm not going to comment on whether we have 100% share or what our expectations are with any given customer. But I will say that our expectations with the product pipeline that we have, both with existing customers as well as new customers and the one we talked about, China-based mobile manufacturer, gives me high confidence that the demand, both in the short term as well as the long term, is going to continue to be very, very solid and very strong. And I think that's why you've seen some of our competitors go out and buy capacity to be able to address this market. And I think that's healthy for the industry, and it will have more and more consumer electronic customers designing in the types of products that we're making today and then therefore drive additional demand. So I think from our perspective, we're focused on continuing to drive our costs down and to continue to have the kinds of margins that we expect for investments that we have made for 3D sensing. And we're pretty confident that things look pretty good at this point in time.

嗯，我不打算評論我們是否擁有 100% 的份額，或是我們對任何特定客戶的預期。但我會說，憑藉我們現有的產品管線，無論是既有客戶還是新客戶，以及我們提到的那家以中國為基地的手機製造商，這讓我非常有信心，需求不論在短期或長期都將持續非常、非常穩健且強勁。我想這也是為什麼你會看到我們的一些競爭對手出去購買產能，以便能夠因應這個市場。我認為這對產業是健康的，並且會有越來越多的消費性電子客戶把我們今天正在製造的這類產品設計導入，進而帶動額外需求。所以從我們的角度來看，我們專注於持續降低成本，並持續維持我們對 3D 感測投資所預期的那種毛利水準。而且我們相當有信心，就目前這個時間點來看，情況相當不錯。

Your next question comes from the line of Joseph Wolf with Barclays.

下一個問題來自 Barclays 的 Joseph Wolf。

Operator, let's go to the next question.

接線員，我們進入下一個問題。

Your final question comes from the line of Dave Kang with B. Riley.

最後一個問題來自 B. Riley 的 Dave Kang。

A couple of questions. First, did you give out the ASP of edge-emitters? And second question is regarding other customers that you're working with. Are they for VCSELs or edge or both?

我有幾個問題。第一，你們有提供邊射型（edge-emitters）的 ASP 嗎？第二個問題是關於你們正在合作的其他客戶。他們是用於 VCSEL、邊射型，還是兩者都有？

Sorry, Dave. The first question was what?

抱歉，Dave。第一個問題是什麼？

ASP of edge-emitters.

邊射型（edge-emitters）的 ASP。

Yes. I think what we've said in general terms, selling a bare die is probably lower ASP than selling an edge-emitter that goes onto a sub-mount, in most cases, and so therefore. But a lot has to do with the size of the chip, right? So we have edge-emitter customers that have large chips and their ASP is higher. And we have ones that have smaller chips where the prices are lower. So it's really a function of what kind of power they're looking for from the edge-emitter and that drives the size of the edge-emitter and the ASP. So it's going to be a range of ASPs. But in general, I would say for a similar size chip, edge-emitters will be slightly higher priced, but there will also be at the next level of subassembly that we provide to the customer.

是的。我想我們一般性的說法是，銷售裸晶（bare die）的 ASP 可能會低於在多數情況下會裝到子載板（sub-mount）上的邊射型產品，因此……但很大一部分取決於晶片尺寸，對吧？所以我們有一些邊射型客戶使用較大的晶片，他們的 ASP 較高。也有一些使用較小晶片的，價格就較低。因此這其實取決於他們希望邊射型提供多大的功率，而這會決定邊射型的尺寸與 ASP。所以 ASP 會是一個區間。但一般來說，在晶片尺寸相近的情況下，邊射型的價格會略高一些，而且在我們提供給客戶的下一層次子組裝（subassembly）上也會有所體現。

So it sounds like there are multiple applications, not necessarily just facial recognition. Is that correct?

所以聽起來有多種應用，不一定只是臉部辨識。是這樣嗎？

Yes. We can't comment on the applications, but I would say that we're working on many different applications. Our customers are pretty confidential and quiet about what it is. But I can say that, based on some of the customer expectations on power, and that implies the reach capability of the different devices, we're working on many different types of applications.

是的。我們無法評論具體應用，但我會說我們正在做許多不同的應用。我們的客戶對此相當保密，也很低調。但我可以說，根據一些客戶對功率的期待，而這也意味著不同裝置的可達距離能力，我們正在進行許多不同類型的應用。

So once again, on my second question about other customers. So it sounds like you are working on both VCSELs as well as the edge-emitters. Is that correct?

那再回到我第二個問題，關於其他客戶。所以聽起來你們同時在做 VCSEL 以及邊射型（edge-emitters）。是這樣嗎？

Several of each, yes.

是的，各有好幾個。

Got it. And the last question is, what's the latest status on your ACOs?

了解。最後一個問題是，你們 ACO 的最新狀態如何？

Yes. So Dave, good question. We've been late to market with that product. We had sampled some customers and actually came to the conclusion a couple of months ago that it was best to redirect those resources that were working on the first-generation 100 gig, 200 gig ACO and redirect them to next-generation coherent components to get ahead. Our customers were fine with it, which tells me that's the right decision we made. And so therefore we're really working on next-generation stuff, and whether it's ACO or DCO or the components, to really leapfrog the competition where we were significantly behind the lead guy there and they had gobbled up all of the market share for quite some time. So we made a tough decision. I think it's the right decision. But we're really focused on next generation of coherent components and modules.

是的。Dave，問得好。我們在那個產品上上市時間較晚。我們曾向一些客戶送樣，但在幾個月前我們實際上得出結論，最好把原本投入第一代 100G、200G ACO 的資源重新配置，轉向下一代相干（coherent）元件，以便搶先一步。我們的客戶也能接受，這讓我覺得我們做了正確的決定。因此我們現在真正著力於下一代的東西，不論是 ACO、DCO 或相關元件，目標是大幅超越競爭對手；因為在那個領域我們明顯落後於領先者，而他們也在相當長一段時間內吃下了幾乎所有市占。所以我們做了一個艱難的決定。我認為這是正確的決定。但我們確實把重心放在下一代相干元件與模組。

And we have no further questions at this time. I would now like to turn the call back over to Mr. Alan Lowe, President and Chief Executive Officer, for his closing remarks.

目前沒有其他問題。我現在想把電話交回給總裁兼執行長 Alan Lowe 先生，請他做結語。

Thank you, Dan. I want to thank our customers for their business and again thank our employees for their hard work in growing our business and putting us into an excellent position in the market. We are in the middle of a worldwide expansion of bandwidth. Photonics are increasingly becoming critical to manufacturers and to next-generation, high-volume 3D sensing applications making the future bright at Lumentum.

謝謝你，Dan。我要感謝我們的客戶對我們業務的支持，也再次感謝我們的員工辛勤工作，推動業務成長，並讓我們在市場上處於極佳的位置。我們正處於全球頻寬擴張的中期。光子技術對製造商以及下一代高出貨量的 3D 感測應用正變得愈來愈關鍵，讓 Lumentum 的未來更加光明。

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 and we look forward to talking with you again in another 3 months. Thank you.

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。感謝各位參與，我們期待在 3 個月後再次與各位交流。謝謝。

Thank you to everyone for attending today. This will conclude today's call and you may now disconnect.

感謝各位今天參與。今天的電話會議到此結束，您現在可以掛線。