Lumentum Holdings Inc. (LITE) 2018 Q3 法說會逐字稿

Good morning. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lumentum Fiscal Third Quarter 2018 Financial Results Conference Call. (Operator Instructions)

早安。我叫 Kelly，今天將擔任各位的電話會議接線員。此刻，我謹代表公司歡迎各位參加 Lumentum 2018 會計年度第三季財務業績電話會議。(接線員指示)

I would now like to turn the conference over to Chris Coldren, Vice President, Strategy and Corporate Development. Please go ahead.

現在我想將會議交給策略與企業發展副總裁 Chris Coldren。請開始。

Thank you, Kelly. Welcome to Lumentum's Third 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，Kelly。歡迎參加 Lumentum 2018 會計年度第三季財報電話會議。我是策略與企業發展副總裁 Chris Coldren。今天與我一同參與電話會議的還有總裁暨執行長 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, including potential market sizes, trends and expectations for products and technology, purchasing trends and demand for our products, Lumentum's expected financial performance, expenses and position in the market as well as statements regarding our pending acquisition of Oclaro. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expeditions. I encourage you to review our most recent filings with the SEC, particularly the risk factors described in our 10-Q filing for our third quarter ended March 31, 2018, that we expect to be on file with the SEC later today.

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的陳述（包含潛在市場規模、趨勢，以及對產品與技術的預期）、採購趨勢與對我們產品的需求、Lumentum 預期的財務表現、費用與市場地位，以及關於我們擬議收購 Oclaro 的相關陳述。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的預期有重大差異。我鼓勵各位查閱我們近期向 SEC 提交的文件，特別是我們截至 2018 年 3 月 31 日之第三季 10-Q 申報文件中所描述的風險因素；我們預期該文件將於今日稍晚向 SEC 存檔。

The forward-looking statements we provide during this call, including projections for future performance, are based on our reasonable beliefs and expectations as of today. Lumentum undertakes no obligation to update these statements except as required by applicable law.

我們在本次電話會議中提供的前瞻性陳述（包括對未來表現的預測）係基於截至今日我們合理的信念與預期。除非適用法律要求，Lumentum 不承擔更新這些陳述之任何義務。

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. Our press release with our third quarter fiscal 2018 results is available on our website, www.lumentum.com, under the Investors section, and includes additional details about our non-GAAP financial measures and a reconciliation between our GAAP and non-GAAP results. Our website also has our latest SEC filings, which we encourage you to review, and supplementary slides relating to today's earnings release. A recording of today's call will be available by 11:30 a.m. Pacific Time on our website.

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 2018 會計年度第三季業績新聞稿已公布於公司網站 www.lumentum.com 的投資人專區，並包含關於非 GAAP 財務衡量指標的更多細節，以及 GAAP 與非 GAAP 結果之間的調節表。我們的網站亦提供最新的 SEC 申報文件（我們鼓勵各位查閱），以及與今日財報發布相關的補充簡報。今日電話會議的錄音將於太平洋時間上午 11:30 前在我們網站上提供。

Before turning the call over to Alan, we have some additional comments related to the pending acquisition of Oclaro. Today's call is neither an offering of securities nor solicitation of a proxy vote in connection with our announced transaction with Oclaro. Information discussed today is qualified in its entirety by the proxy statement/prospectus that Lumentum will file with the SEC in connection with our proposed transaction. Information in the preliminary proxy statement/prospectus may not be complete and may be subject to change. Lumentum may not sell the common stock referenced in the proxy statement/prospectus until the registration statement on Form S-4 that we filed with the SEC becomes effective. We encourage security holders to read the definitive proxy statement/prospectus and other documents filed with the SEC carefully when they become available, because they will contain important information about the proposed transaction.

在把電話會議交給 Alan 之前，我們還有一些與擬議收購 Oclaro 相關的補充說明。今日電話會議既非證券之要約出售，亦非就我們已宣布與 Oclaro 之交易徵求委託書投票。今日所討論之資訊，均應以 Lumentum 就擬議交易向 SEC 提交之委託書聲明／公開說明書為準，且其內容具有完整之限制與約束。初步委託書聲明／公開說明書中的資訊可能不完整，且可能變更。在我們向 SEC 提交之 S-4 表格註冊聲明生效之前，Lumentum 不得出售委託書聲明／公開說明書中所提及之普通股。我們鼓勵證券持有人在相關文件可取得時，仔細閱讀最終版委託書聲明／公開說明書及其他向 SEC 提交的文件，因其將包含關於擬議交易的重要資訊。

Further, on the pending Oclaro transaction, last month the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart–Scott–Rodino Antitrust Improvements Act of 1976 as amended. This transaction is still subject to antitrust regulatory approval in China as well as the vote of Oclaro's stockholders and certain other closing conditions. We continue to work with Oclaro on this pending transaction.

此外，就擬議的 Oclaro 交易而言，上個月美國聯邦貿易委員會已核准依 1976 年《哈特—史考特—羅迪諾反托拉斯改進法》（經修訂）所規定之等待期提前終止。本交易仍須取得中國之反托拉斯監管核准，以及 Oclaro 股東投票同意，並滿足其他若干交割條件。我們將持續與 Oclaro 合作推進此擬議交易。

During the Q&A session, please keep in mind that the focus of this call is our earnings report and guidance, and we will not be sharing incremental information relating to our pending acquisition of Oclaro.

在問答環節中，請記得本次電話會議的重點是我們的財報與財測指引；我們不會分享與擬議收購 Oclaro 相關的新增資訊。

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

現在我想把電話會議交給 Alan，請他發表評論並分享第三季業務重點。

Thank you, Chris, and good morning, everyone. Strong demand drove telecom, datacom and lasers revenue up in the third quarter. Global markets in which Lumentum participates have fundamentally robust long-term trends. Every day the world is reliant on ever-increasing amounts of data flowing through the world's optical networks and data centers. New networks and data centers need to be built to satisfy this insatiable demand for data.

謝謝你，Chris，各位早安。強勁需求帶動第三季電信、數據通訊與雷射營收成長。Lumentum 參與的全球市場在長期趨勢上具備根本性的強勁動能。每天，世界都仰賴越來越大量的資料在全球光纖網路與資料中心中流動。為了滿足這股對資料永不滿足的需求，必須建置新的網路與資料中心。

Globally, regardless of who is supplying the optical network and equipment or who is deploying the network, the types of products and technologies Lumentum supplies are essential. Higher levels of precision, new materials, [factory] and energy efficiency are all increasingly important to manufacturers around the world. To address these trends, suppliers of manufacturing tools globally are turning more and more to laser-based approaches and the types of lasers Lumentum supplies.

在全球範圍內，不論是由誰供應光纖網路與設備，或由誰部署網路，Lumentum 所提供的產品與技術類型都至關重要。更高的精密度、新材料、[工廠]與能源效率，對全球製造商而言都日益重要。為因應這些趨勢，全球製造工具供應商正越來越多地採用以雷射為基礎的方法，以及 Lumentum 所供應的各類雷射。

Laser-based 3D sensing is a rapidly developing market. The technology enables computer vision applications, enhanced security, safety and new functionality in the electronic devices that people rely on every day.

以雷射為基礎的 3D 感測是一個快速發展的市場。該技術可實現電腦視覺應用、提升安全與防護，並為人們每天依賴的電子裝置帶來新功能。

Lumentum's strategy is to leverage our photonics technology across all of these growing markets, invest in and quickly ramp the best products, and focus on close relationships with market-leading customers helping them to win. This strategy is succeeding.

Lumentum 的策略是將我們的光子技術運用於所有這些成長中的市場，投資並快速擴產最優質的產品，並專注於與市場領先客戶建立緊密關係，協助他們取得勝利。這項策略正在奏效。

In the third quarter, our commercial lasers segment achieved new record revenues, driven by strong demand from customers in both micro and macro material processing markets. Lasers growth margin at 48.4% improved sequentially due to higher volumes in the mix of products. I'm proud of the Lumentum team, whose execution on ramping capacity enabled the strong 18% sequential growth and the large sequential gross margin improvement in the quarter. We expect continued strength in our lasers business as we ramp our newest fiber laser products to meet strong customer demand.

第三季，我們的商用雷射事業部創下新的營收紀錄，主要受惠於微加工與宏觀材料加工市場客戶的強勁需求。雷射業務毛利率為 48.4%，由於產品組合中較高出貨量的影響，較前一季提升。我為 Lumentum 團隊感到自豪；他們在擴充產能方面的執行力，促成了本季 18% 的季增成長，以及顯著的季增毛利率改善。隨著我們擴產最新的光纖雷射產品以滿足強勁客戶需求，我們預期雷射業務將持續強勁。

Later this calendar year, we will be introducing a full turnkey fiber laser system to broaden our fiber laser customer base and further accelerate growth.

在今年稍晚，我們將推出完整的交鑰匙光纖雷射系統，以擴大我們的光纖雷射客戶基礎並進一步加速成長。

Our industrial diode laser product line, which is primarily driven by customers building their own fiber lasers, also delivered continued strong results. Growth in this business was limited by production capacity. The combination of external customer demand and internal demand for use in our own fiber laser outstripped our ability to supply in the third quarter. We are expanding capacity in these product lines to enable higher external sales as well as increased supply into our own fiber lasers. Parts of these capacity additions are in our new -- are in our own factory in Thailand, which started shipping qualified industrial diode laser products in April.

我們的工業二極體雷射產品線（主要由自行打造光纖雷射的客戶所帶動）也持續交出強勁成果。該業務的成長受限於產能。第三季，外部客戶需求與我們內部用於自家光纖雷射的需求合計，超過了我們的供應能力。我們正在擴充這些產品線的產能，以支持更高的外部銷售，同時增加供應給自家光纖雷射的數量。部分產能擴增位於我們新的——位於我們自有的泰國工廠；該工廠已於四月開始出貨通過認證的工業二極體雷射產品。

As expected, our third quarter 3D sensing revenue declined substantially, driven by customer seasonality. This seasonality is continuing into the fourth quarter, but we expect volume will ramp up again in the first half of fiscal 2019.

如預期，我們第三季 3D 感測營收因客戶季節性因素而大幅下滑。此季節性將延續至第四季，但我們預期出貨量將在 2019 會計年度上半年再次回升。

Third quarter revenues contained modest contributions from Android customers, including those purchasing our latest high-performance, edge-emitting lasers. As previously highlighted, these customers are expected to drive far more business in the future as we look to our fiscal 2019 and beyond. Between these customers and numerous additional customer engagements underway, we expect we will broaden our customer and product mix over time. With our proven manufacturing scalability, proven field reliability and new product pipeline, we believe we are well positioned to be the partner of choice for 3D sensing customers around the world in fiscal 2019 and over the long run.

第三季營收包含來自 Android 客戶的些許貢獻，其中包括購買我們最新高效能的邊射型雷射器的客戶。如先前所強調，隨著我們展望 2019 會計年度及其後，預期這些客戶未來將帶動更多業務。在這些客戶以及目前進行中的眾多其他客戶合作案之間，我們預期將隨時間推進擴大客戶與產品組合。憑藉我們已驗證的製造擴充能力、已驗證的現場可靠性以及新產品管線，我們相信在 2019 會計年度以及長期而言，我們已具備良好條件，成為全球 3D 感測客戶的首選合作夥伴。

Turning to our optical communications business. Third quarter demand was strong, which drove an 11% quarter-on-quarter revenue growth in telecom. We had notably strong ROADM sales, which grew 27% sequentially. We shipped record levels of our newest TrueFlex ROADM products. ROADM shipments were limited by production capacity in the quarter.

接著談我們的光通訊業務。第三季需求強勁，帶動電信業務營收較前一季成長 11%。我們的 ROADM 銷售表現尤其強勁，較前一季成長 27%。我們出貨了創新高水準的最新 TrueFlex ROADM 產品。本季 ROADM 出貨受限於產能。

Telecom pump laser sales continued to be strong, but quarter-on-quarter growth was also limited by capacity. With strong ROADM line card sales, our internal need for pumps further exacerbated pump capacity limitations. We are expanding pump laser and ROADM capacity to meet customer demand, which we expect to remain strong.

電信泵浦雷射銷售持續強勁，但季對季成長同樣受產能限制。隨著 ROADM 線卡銷售強勁，我們內部對泵浦的需求進一步加劇了泵浦產能限制。我們正在擴充泵浦雷射與 ROADM 產能以滿足客戶需求，且我們預期需求將維持強勁。

Telecom transmission and datacom revenues also grew sequentially after having had a few slow quarters. However, margins in datacom remain challenging because market prices for sales into the hyperscale data center space have been declining faster than we have been able to reduce the cost of our products.

電信傳輸與資料通訊（datacom）營收在經歷幾個較疲弱的季度後，也呈現連續成長。然而，資料通訊的毛利率仍具挑戰，因為銷售至超大規模資料中心（hyperscale data center）市場的市場價格下滑速度，快於我們降低產品成本的速度。

As I have highlighted on prior calls, later this calendar year we are planning to introduce a significantly cost-reduced transceiver, targeting the hyperscale data center market to increase our competitiveness and margins.

如我在先前的電話會議中所強調，我們計畫在今年稍晚推出一款成本大幅降低的收發器，鎖定超大規模資料中心市場，以提升我們的競爭力與毛利率。

In March, we were at the OFC trade show and had several product demonstrations that received a lot of attention from customers, industry media and analysts. I would like to highlight 2 of these for you. First, we had a live demonstration of our next-generation 400G datacom transceivers in the 2 main form factors of interest to customers, OSFP and QSFP-DD. This demonstration included a single wavelength 100G transceiver also utilizing PAM4 modulation and our high-performance EML chips. Second, we showed our new TrueFlex nano ROADM product, which won the best optical subsystem award from Lightwave Innovation's reviews. This disruptive and extremely compact product enables the use of flexible spectrum ROADMs in new applications and expands the market for our leading TrueFlex ROADMs. Production shipments of this product began in the third quarter.

3 月我們參加了 OFC 展會，並進行了多項產品展示，獲得客戶、產業媒體與分析師的高度關注。我想為各位重點介紹其中兩項。第一，我們現場展示了下一代 400G 資料通訊收發器，採用客戶最關注的兩種主要外形規格：OSFP 與 QSFP-DD。此展示亦包含單波長 100G 收發器，同樣採用 PAM4 調變以及我們的高效能 EML 晶片。第二，我們展示了新的 TrueFlex nano ROADM 產品，並獲得 Lightwave Innovation 評選的最佳光學子系統獎。這款具顛覆性且極度精巧的產品，使可撓頻譜 ROADM 能應用於新的場景，並擴大我們領先的 TrueFlex ROADM 市場。該產品已於第三季開始量產出貨。

The final third quarter highlight I'd like to discuss is our announcement of entering into an agreement to acquire Oclaro. I believe this is not only a major milestone for Lumentum, but for the entire optical industry. One of the key motivations in Lumentum becoming a stand-alone company in 2015 was to be able to engage in major M&A transactions that would accelerate our strategy and industry road maps.

我想討論的第三季最後一項重點，是我們宣布已達成協議收購 Oclaro。我相信這不僅是 Lumentum 的重大里程碑，也是整個光學產業的重要里程碑。Lumentum 在 2015 年成為獨立公司的一項關鍵動機，就是能夠進行大型併購（M&A）交易，以加速我們的策略與產業路線圖。

Earlier in my remarks, I highlighted significant long-term trends that make markets -- the markets in which we participate increasingly dependent upon our photonics solutions. These trends, along with our investments in new products and technologies and intimate relationships with industry-leading customers, create strong long-term growth opportunities for us here at Lumentum. We have a lot going on and it is a very, very exciting time at Lumentum.

在我先前的談話中，我強調了若干重要的長期趨勢，使我們所參與的市場愈來愈依賴我們的光子解決方案。這些趨勢，加上我們對新產品與新技術的投資，以及與產業領先客戶的緊密關係，為 Lumentum 創造了強勁的長期成長機會。我們有許多進展，對 Lumentum 而言，這是一個非常、非常令人振奮的時刻。

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

接下來我將把時間交給 Aaron，請他更詳細說明我們的財務結果，以及對 2018 會計年度第四季的展望。

Thank you, Alan. Net revenue for the third fiscal quarter was $298.8 million, which decreased 26.1% sequentially and increased 16.8% compared with the same period last year. The sequential decline was driven by the expected reduction of our 3D sensing product revenue, partially offset by an increase in telecom, datacom and commercial laser product revenues.

謝謝你，Alan。第三個會計季度的淨營收為 2.988 億美元，較前一季下滑 26.1%，較去年同期成長 16.8%。季對季下滑主要來自我們 3D 感測產品營收如預期下降，部分被電信、資料通訊與商用雷射產品營收增加所抵銷。

GAAP gross margin for the third quarter was 32.5% and included a $3.5 million inventory reserve related to ZTE. Our revenue from ZTE during the last 12 months was less than 0.5% of total revenue.

第三季 GAAP 毛利率為 32.5%，其中包含與中興（ZTE）相關的 350 萬美元存貨備抵。過去 12 個月我們來自中興的營收占總營收比重低於 0.5%。

GAAP operating margin was 8.5% and GAAP diluted net income per share was $0.04.

GAAP 營業利益率為 8.5%，GAAP 稀釋後每股淨利為 0.04 美元。

Our third quarter non-GAAP gross margin was 36.3%, which decreased 8.6 percentage points sequentially and increased 1.9 percentage points compared with the same period last year.

第三季非 GAAP 毛利率為 36.3%，較前一季下降 8.6 個百分點，較去年同期增加 1.9 個百分點。

Non-GAAP operating income was $49.4 million, and operating margin for the third quarter was 16.5% and decreased 11.8 percentage points sequentially. The decrease in operating margin was primarily due to the 8.6 percentage point decrease in gross margin from the change in mix and lower volume.

非 GAAP 營業利益為 4,940 萬美元，第三季營業利益率為 16.5%，較前一季下降 11.8 個百分點。營業利益率下降主要是由於產品組合變動與出貨量降低，導致毛利率下降 8.6 個百分點。

Non-GAAP net income was $50.6 million for the third quarter. Non-GAAP earnings per share was $0.78 based on a fully diluted share count of 64.8 million and included $2 million of interest income and an $800,000 tax expense.

第三季非 GAAP 淨利為 5,060 萬美元。以完全稀釋後股數 6,480 萬股計算，非 GAAP 每股盈餘為 0.78 美元，其中包含 200 萬美元利息收入與 80 萬美元所得稅費用。

Now for some additional detail. Optical Communications revenue including 3D sensing was $246.3 million, a decrease of 32% sequentially and an increase of 14% compared with the same period last year.

接下來提供一些補充細節。包含 3D 感測在內的光通訊營收為 2.463 億美元，較前一季下降 32%，較去年同期成長 14%。

Telecom revenue at $122.6 million increased 11% sequentially and decreased 25% compared with the same period last year.

電信營收為 1.226 億美元，較前一季成長 11%，較去年同期下降 25%。

Our industry-leading ROADMs increased 27% quarter-on-quarter. Datacom was $36.3 million and increased 6% sequentially, and declined 7% compared with the same period last year.

我們業界領先的 ROADM 較前一季成長 27%。資料通訊營收為 3,630 萬美元，較前一季成長 6%，較去年同期下降 7%。

Consumer and industrial revenue at $87.4 million decreased 59% sequentially and increased more than 600% compared with the same period last year due to 3D sensing revenue volume.

消費與工業營收為 8,740 萬美元，較前一季下降 59%，由於 3D 感測營收出貨量的因素，較去年同期成長超過 600%。

Optical Communications gross margin at 33.7% decreased 11.3 percentage points sequentially due to the mix of products and lower revenue volume.

光通訊毛利率為 33.7%，由於產品組合與營收規模較低，較前一季下降 11.3 個百分點。

During the quarter, Optical Communications gross margin was diluted by lower margin datacom products and start-up expenses related to our Thailand manufacturing operation.

本季光通訊毛利率受到較低毛利的資料通訊產品，以及與泰國製造營運相關的啟動費用所稀釋。

Commercial lasers revenue was a record high at $52.5 million and increased 18% sequentially and 32% compared with the same period last year. The increase in volume was from both micromachining and kilowatt laser products.

商用雷射營收創新高，達 5,250 萬美元，較前一季成長 18%，較去年同期成長 32%。出貨量增加來自微加工與千瓦級雷射產品兩方面。

Third quarter commercial lasers gross margin was 48.4% and increased 3.7 percentage points sequentially.

第三季商用雷射毛利率為 48.4%，較前一季增加 3.7 個百分點。

Operating expenses totaled $59.1 million or 19.8% of revenue compared with $67.2 million or 16.6% of revenue from last quarter.

營業費用合計 5,910 萬美元，占營收 19.8%；相較之下，上季為 6,720 萬美元，占營收 16.6%。

R&D expense was $35 million and SG&A expense was $24.1 million.

研發費用為 3,500 萬美元，銷售、一般及行政（SG&A）費用為 2,410 萬美元。

We exited the third quarter with cash and short-term investments of $692.8 million, which increased $68 million sequentially. During the last 2 quarters, we have generated over $160 million of cash representing 22.8% of revenue. Capital equipment additions were approximately $17 million in Q3.

我們在第三季結束時的現金及短期投資為6.928億美元，較前一季增加6,800萬美元。在過去2個季度，我們已產生超過1.6億美元的現金，約占營收的22.8%。第三季的資本設備新增約為1,700萬美元。

Now on to our guidance for the fourth quarter of fiscal 2018, noting again that all projections are on a non-GAAP basis. We project net revenue for the fourth quarter to be in the range of $275 million to $300 million, with operating margin in the range of 14% to 16% and earnings per share to be in the range of $0.55 to $0.75.

接下來是我們對2018會計年度第四季的財測，再次提醒所有預估皆以非GAAP基礎呈現。我們預估第四季淨營收將落在2.75億至3.00億美元之間，營業利益率介於14%至16%，每股盈餘介於0.55至0.75美元。

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. Before starting the Q&A session, I would like to remind everyone of the earlier comments relating to the pending Oclaro acquisition. We will not be adding anything further on this matter than we had in our prepared remarks, and all questions about the pending acquisition will receive such a response. As usual, I would like to ask everyone to limit discussion to one question and one follow-up.

謝謝你，Aaron。在開始問答之前，我想提醒各位先前關於Oclaro收購案尚待完成的相關說明。除了我們在事先準備的講稿中所提到的內容之外，我們不會就此事再補充任何資訊，所有關於該待完成收購案的提問都將得到相同回覆。照例，也請各位將討論限制為一個問題以及一個追問。

Kelly, let's begin the question-and-answer session.

Kelly，我們開始問答環節。

(Operator Instructions) Our first question comes from Alex Henderson from Needham & Company.

(接線員指示) 我們的第一個問題來自Needham & Company的Alex Henderson。

I'd love to ask a question about Oclaro. No, I'm just kidding. So I was hoping you could give us a little bit of color on what you're seeing in China, whether -- and specifically whether you think there's any change of behavior as a result of the Commerce Department actions against ZTE and Huawei. And along those lines, are you seeing acceleration in the ROADM demand particularly in China or is that broadly globally? Can you give us any color on those 2 elements? I assume, by the way, the -- you've read The Street reading on Huawei that suggests that most of people on The Street think that, that will not come to a blockage. Would you agree with that?

我很想問一個關於Oclaro的問題。不，我開玩笑的。我希望你們能多談一點你們在中國看到的情況，尤其是你們是否認為因商務部對中興與華為的行動而出現任何行為改變。另外，你們是否看到ROADM需求加速，特別是在中國，還是說這是全球普遍現象？能否就這兩點提供一些看法？順帶一提，我想你們也看過《The Street》對華為的解讀，該報導指出華爾街多數人認為不至於演變成封鎖。你們同意這個看法嗎？

Well, I'm not going to speculate on what the U.S. government and China relations are going to do over time, but I can tell you the behavior that we've seen has been no change in overall demand pictures from China. I'd say that the strength in ROADMs was primarily outside of China, although I'd say that the growth in Q3 in China was modest. I'd say that the forward-looking demand for us and backlog looks to be growth across the globe including China. So I think what we've always been saying is that the ROADM deployment in China as well as in North America continues to look very strong, and strong for quite some time. So really no change in behavior so far.

我不會去臆測美國政府與中美關係未來會如何發展，但我可以告訴你，我們觀察到的行為是：來自中國的整體需求態勢沒有改變。我會說ROADM的強勁主要來自中國以外的地區，雖然第三季在中國的成長也算溫和。我會說，從我們的前瞻需求與在手訂單（backlog）來看，全球包含中國在內都呈現成長。因此，我認為我們一直在說的是，中國以及北美的ROADM部署看起來都會持續非常強勁，而且會強勁相當一段時間。所以到目前為止，行為上真的沒有變化。

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

下一個問題來自Raymond James的Simon Leopold。

Last quarter you were kind enough to give us some color on the 3D expectations that you thought you would do in the neighborhood of $60 million in your March quarter. Presumably, you exceeded that nicely, but it's not crystal clear. So could you give us a little bit more color on 3D this quarter and the expectations or what's implied in your June quarter?

上季你們很貼心地提供了3D的展望，提到你們在3月季度大約會做到6,000萬美元左右。推測你們應該明顯超過了，但目前並不十分清楚。所以你們能否再多談一點本季3D的情況，以及你們6月季度的預期或隱含的假設？

Simon, this is Aaron. So in terms of specific product breakout, we're not going to provide exact numbers. But in terms of what Alan has said in the prepared remarks, 3D sensing was down in the March quarter due to seasonality, like we expected going into the quarter. And in terms of the June quarter, same type of seasonality is expected in terms of directionally down.

Simon，我是Aaron。就特定產品的拆分而言，我們不會提供精確數字。但就Alan在事先準備的講稿中所說，3D感測在3月季度因季節性因素而下滑，這與我們進入該季度前的預期一致。至於6月季度，預期也會有同樣的季節性影響，方向上仍是下滑。

Okay. And I wanted to shift gears to the more traditional optical component business. I'm a little bit confused by what's gone on in gross margins in that we've generally thought that ROADM and WSS gross margins were particularly good, and I understand and heard you talk about pressure in datacom, but I'm still surprised by the -- by what's implied in your gross margins for the traditional components, looking like they're certainly below 30% gross margin in the quarter based on our guesstimates around 3D. Could you help us understand what's gone on in that segment?

好的。我想把話題轉到較傳統的光學元件業務。我對毛利率的變化有點困惑：我們一般認為ROADM與WSS的毛利率特別好；我也理解並聽到你們談到數據通訊（datacom）的壓力，但我仍對你們傳統元件的毛利率隱含水準感到意外。根據我們對3D的粗略估算，該季度看起來肯定低於30%的毛利率。你們能否協助我們理解該部門發生了什麼？

Yes. So Simon, as we had said during the prepared remarks, in terms of the Optical Communications gross margins of 33.7%, yes, it does include better than corporate average 3D sensing margins. However, datacom has been very challenging and the pricing in the hyperscale arena as well as in other areas that datacom products go into, have been challenging and that's why we've been unable to make money in that arena. And so it's been very, very dilutive through our Optical Communications gross margin. Also noting that we've incurred some start-up expenses in terms of bringing up our Thailand operation as well, which has been dilutive and we'll remain dilutive for the next 5 quarters, 6 quarters or so.

可以。Simon，正如我們在事先準備的講稿中所說，光通訊（Optical Communications）33.7%的毛利率，確實包含了高於公司平均的3D感測毛利率。然而，數據通訊一直非常具挑戰性，無論是在超大規模（hyperscale）領域或其他數據通訊產品所進入的市場，定價都很艱難，這也是我們在該領域無法獲利的原因。因此，它對我們的光通訊毛利率造成非常、非常大的稀釋。另外也要注意，我們在泰國廠區的建置與導入（bringing up）方面產生了一些啟動費用，這也造成稀釋，且在接下來大約5到6個季度仍會持續稀釋。

But can you confirm -- yes, I just wanted to make sure you could confirm that the ROADM WSS products are certainly much better than that average?

但你能否確認——是的，我只是想確認你能否證實ROADM與WSS產品的毛利率肯定遠高於那個平均值？

They are. ROADMs and most of the transport products do have better margins than the rest inside of Optical Communications.

是的。ROADM以及大多數傳輸（transport）產品的毛利率，確實高於光通訊部門內的其他產品。

Aside from 3D sensing.

除了3D感測之外。

Sorry, Alan, go on. I didn't want to cut you off.

抱歉，Alan，你繼續。我不想打斷你。

No, no problem, Simon. It's just a comment on the datacom. As I talked about in the prior earnings call as well as in my prepared remarks, we are very close to releasing a very low-cost hyperscale-focused datacom transceiver later this year. And in continuing those engagements with those hyperscales is our strategy to keep that door open as we introduce the new lower-cost product. So through this quarter and next, we're going to continue to have some challenges with respect to the margins on the hyperscale, but we expect to rectify that later this year.

不，不會，Simon。我只是補充一下數據通訊。正如我在上一場財報電話會議以及在事先準備的講稿中提到的，我們非常接近在今年稍晚推出一款面向超大規模、成本非常低的數據通訊收發器（transceiver）。而持續與這些超大規模客戶互動，是我們在推出新的低成本產品時，保持這扇門敞開的策略。因此在本季以及下一季，我們在超大規模業務的毛利率方面仍會面臨一些挑戰，但我們預期在今年稍晚加以改善。

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

下一個問題來自Barclays的Joseph Wolf。

I guess, I wanted to focus on a comment on the Android market being potentially or far more business in fiscal '19 than the rest. Given the difference in types of approaches technology-wise, how much capacity do you have on the non-VCSEL side of that business in terms of meeting that kind of growth? And when you said far more business, is that the technology or that's just the number of customers and the kind of demand curve that you're seeing from customer engagements?

我想聚焦在你們提到Android市場在2019會計年度可能——或是會比其他部分帶來更多業務的評論。考量到技術路線上的差異，就滿足那種成長而言，你們在該業務中非VCSEL端的產能有多少？另外，當你說「更多業務」時，你指的是技術本身，還是指客戶數量，以及你們從客戶洽談中看到的需求曲線？

Yes. So Joseph, I wasn't to imply that the edge-emitting or Android business would be far more than our VCSEL business. I implied that it would be far more than it is today, which is relatively small. So we do have capacity to handle the demand over the next several quarters and are adding capacity to -- in anticipation of really a calendar '19 more significant ramp on edge-emitters. What we have seen though is that the Android market is mixed with respect to edge-emitters and VCSELs, so we are supplying VCSELs to some Android markets -- some Android customers as well as edge-emitters, and in some cases one of each. So I think we're still trying to sort out exactly where we need to add capacity and when we need to add it. Our comments were really more to the point of it should contribute significantly to our growth in 3D sensing both in fiscal '19 as well as beyond.

是的。所以 Joseph，我並不是要暗示邊射型或 Android 業務會遠遠大於我們的 VCSEL 業務。我想表達的是，它會比今天大得多，而目前規模相對較小。因此，我們確實有能力在接下來幾個季度應對需求，並且也在增加產能——主要是為了因應日曆年 '19 邊射型產品更顯著的放量。不過我們看到的是，Android 市場在邊射型與 VCSEL 的採用上呈現混合狀態，因此我們同時向部分 Android 市場——部分 Android 客戶供應 VCSEL，也供應邊射型產品，有些情況下兩者各一。所以我認為我們仍在釐清究竟需要在哪裡增加產能，以及何時增加。我們的評論其實更著重於：它應該會在 3D 感測方面，無論在會計年度 '19 或更往後，對我們的成長做出顯著貢獻。

All right. That's helpful. And just as a follow-up, how much more room is there for gross margin and expansion in the commercial laser business. They got pretty high pretty fast. Can that go through 50%?

好的。這很有幫助。再追問一下，商用雷射業務的毛利率還有多少提升與擴張空間？它們上升得相當快、也相當高。有機會突破 50% 嗎？

Yes. So Joseph, the commercial lasers gross margins at 48% are still not where we believe they can go. We still believe that there's plenty of room to operate. In terms of dependency, the mix of product inside commercial lasers does have a factor. And over the past several quarters, we've been working to ensure that we could meet customer demand. We have an inordinate amount of demand and the next stage here is to go through cost-reduction activity as well.

是的。所以 Joseph，商用雷射目前 48% 的毛利率仍未達到我們認為可以達到的水準。我們仍相信還有很大的營運改善空間。就依賴因素而言，商用雷射內部的產品組合確實會有影響。而在過去幾個季度，我們一直在努力確保能夠滿足客戶需求。我們的需求量異常強勁，而下一階段也將推進降成本活動。

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

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

First of all, on the 27% growth in ROADMs sequentially, seems like it was driven by the U.S. more than China, I assume the Tier 1 carriers in the U.S. Can you talk about the sustainability of that for the rest of the calendar year? Is this a spike or should this level of strength continue?

首先，ROADM 季比成長 27%，看起來應該是美國帶動多於中國，我猜是美國的一級電信商。你能談談這種情況在今年剩餘日曆年的可持續性嗎？這是一個短期尖峰，還是這種強勁程度會延續？

Yes, Michael. As we've said in the past, ROADM deployments tend to be lumpy, although I would say that at this point in time, we're seeing sustained growth both from the North American Tier 1 carriers, but also the cable operators and MSOs. So I think it's a broad-based growth that I believe will continue through this calendar year. And I think we're gaining share as a result of our leading-edge technology that it will continue to really drive us forward. And then you put on top of that real, real deployments in China, and I think we have a pretty interesting long-term growth story with ROADMs.

是的，Michael。如同我們過去所說，ROADM 的部署往往呈現不均勻的波動，不過我會說，就目前而言，我們看到的不僅是北美一級電信商的持續成長，還包括有線營運商與 MSO。所以我認為這是廣泛基礎的成長，我相信會延續到今年整個日曆年。而且我認為我們正因領先的尖端技術而取得市占，這將持續真正推動我們向前。再加上中國的實際、真正部署，我認為 ROADM 具備相當有意思的長期成長故事。

Great. And then just secondly, can you talk about the evolving competitive landscape in 3D sensing? How you're seeing your share trending? How you're seeing your yields trending? And whether you're picking up anything on any competitor yields out there?

很好。第二個問題，你能談談 3D 感測的競爭格局如何演變嗎？你們看到市占趨勢如何？良率趨勢如何？以及你們是否掌握到任何競爭對手的良率情況？

Yes. It's a pretty secretive industry and our customers don't tell us a lot about what's going on with respect to share. I think just based on some of our competitive earnings results, I'd say we still have a very, very large share of the business and we expect to do our best to maintain that. Our yields are very solid and through these slower 3 months and into the June quarter, we're focused on continuing to drive yields and eking out 1% or 2% more to be able to drive the costs down and the margins up and be able to really make sure we maintain our share and do what our customers need from a supply standpoint as we look into the second half of the calendar year.

是的。這是一個相當保密的產業，我們的客戶不會告訴我們太多關於市占的情況。我想僅從一些競爭對手的財報結果來看，我會說我們仍然擁有非常、非常大的業務市占，而且我們會盡最大努力維持。我們的良率非常穩健，在這較慢的 3 個月以及進入 6 月季度期間，我們專注於持續提升良率，額外擠出 1% 或 2%，以便降低成本、提高毛利，並確保我們能維持市占；同時在展望日曆年下半年時，也能在供應面滿足客戶需求。

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

下一個問題來自高盛（Goldman Sachs）的 Doug Clark。

My first one is on 3D sensing as well. I'm curious if -- as you're working with customers, if for kind of next-generation products to the extent that you start on those with certain customers, are the specs and designs of the VCSEL arrays changing in any way? Or the designs kind of from prior years or prior generations being reused?

我的第一個問題也關於 3D 感測。我想了解的是——當你們與客戶合作、針對下一代產品時，如果你們開始與某些客戶進行這些工作，VCSEL 陣列的規格與設計是否有任何變化？還是沿用前幾年或前幾代的設計？

I would say that in the short term, specs are changing and modifying slightly. And I'd say that for next-generation products, they range from slight modifications to radical changes in design. So I think as we address the new applications for 3D sensing, I think we're going to see a range of improvements and changes in both the design of the VCSEL and how our customers use it as well as the design of the edge-emitters and how they use it. So I think we're seeing a broad range of it. And whether that's a result of both the front-facing and world-facing applications coming or not, our customers don't tell us, but we can kind of imply that the products that we're working on are addressing different applications in different use cases. And so that's why we're pretty excited about the opportunity ahead of us.

我會說短期內，規格確實在做些微調整與修改。而對於下一代產品，變化範圍從小幅修改到設計上的重大改變都有。因此我認為，隨著我們因應 3D 感測的新應用，我們會看到 VCSEL 的設計以及客戶的使用方式、以及邊射型產品的設計與使用方式，都出現一系列的改進與變化。所以我認為我們看到的是相當廣泛的變化。至於這是否因前置（front-facing）與後置/環境（world-facing）應用即將到來所致，客戶不會告訴我們，但我們可以推測，我們正在開發的產品是在因應不同應用與不同使用情境。因此我們對眼前的機會感到相當興奮。

And to be clear, so from year-to-year, you see at least some modest kind of tweaks or modifications to the specifications?

為了確認清楚，所以逐年來看，你們至少會看到規格有一些溫和的微調或修改？

Yes.

是的。

Yes. Okay. And then my second question was actually back on China. You mentioned that overall -- the overall demand picture in China hasn't changed much. But I was curious if that overall demand picture was one of stabilization and troughing or you're seeing return to growth? How would you just characterize China in terms of growth and go-forward expectations?

是的。好的。那我的第二個問題其實回到中國。你提到整體而言——中國的整體需求態勢沒有太大改變。但我想了解，這個整體需求態勢是指正在穩定並觸底，還是你們看到恢復成長？你會如何描述中國的成長狀況與後續展望？

Yes. My comment about not seeing a change in behavior, I think, was really around all of the U.S.-China discussion. I'd say that we are seeing demand in China being robust, especially as we look forward to ROADM. So I'm pretty bullish on expectations for China, mostly in the second half of '19. So we're -- our positioning is pretty solid there and the relationship with multiple customers is strong.

是的。我所說沒有看到行為改變，我想主要是針對所有美中討論的影響。我會說，我們看到中國的需求相當強勁，尤其是展望 ROADM。因此我對中國的預期相當樂觀，主要是在 '19 的下半年。所以我們在那裡的布局相當穩固，與多家客戶的關係也很強。

Okay. And some of your competitors have talked about inventory restocking. Would you agree with that characterization?

好的。你們的一些競爭對手談到庫存回補。你同意這樣的說法嗎？

From what perspective?

你是從哪個角度來看？

From optical systems vendors in China restocking historically-low inventory levels.

從中國的光學系統供應商正在回補歷史低位的庫存水準這個角度。

I think it depends on product, and we're constrained on 980 pump lasers, Raman pump lasers, ROADMs. And so I'd say that there's not a restocking event happening with respect to those things. But I'd say that overall, the levels of inventory from what we can tell anecdotically seem to be in a much healthier position. And I think, from that standpoint, the sellout on their end and the sell-in from our end is getting more equalized as opposed to where it's been in the past, where they were shipping out more than they were taking in. So I think we're to a point that equilibrium has been reached and the real demand that the Chinese customers are seeing should result in real demand to...

我認為要看產品而定，而我們在 980 泵浦雷射、拉曼泵浦雷射、ROADM 方面是供應受限的。所以我會說，就這些項目而言，並沒有發生所謂的回補庫存事件。但我會說，整體而言，從我們道聽塗說所能判斷的庫存水位，似乎處於更健康得多的位置。而且我認為，從這個角度來看，他們那端的終端出貨（sellout）與我們這端的出貨給客戶（sell-in）正在變得更為均衡，而不是像過去那樣，他們出貨出去的量大於他們進貨的量。所以我認為我們已經到達一個均衡點，而中國客戶所看到的真實需求，應該會帶來真實的需求到……

Your next question comes from the line of James Kisner from Loop Capital.

您的下一個問題來自 Loop Capital 的 James Kisner。

So I know you said you wouldn't talk about the Oclaro acquisition. Would you just answer a factual question? I mean, can you clarify does MOFCOM have to approve this deal? Can you give us any thoughts there? And just -- on 3D sensing, I'm just wondering, do you have any sense or visibility for the inventory levels at your customer? I mean obviously demand for some key models that use 3D sensing was very low. And you started shipping a pretty decent size number of [wipes] versus it looks like in the March quarter? I mean, do you feel confident that your shipping and demand, I guess, netting for all the yield issues at the module level or perhaps inventory building right now?

所以我知道您說過不會談 Oclaro 的收購案。您能否只回答一個事實性問題？我的意思是，您能否澄清一下，MOFCOM 是否必須核准這筆交易？您能否就此提供一些看法？另外——關於 3D 感測，我想請問，您對客戶端的庫存水位是否有任何掌握或能見度？我的意思是，顯然某些採用 3D 感測的關鍵機型需求非常疲弱。而您開始出貨相當可觀數量的 [wipes]，相較於看起來在 3 月季度？我的意思是，您是否有信心認為您的出貨與需求——我想，扣除模組層級的良率問題，或是目前可能正在建立庫存——是匹配的？

James, this is Chris. I'll handle the first question. So in our prepared remarks, we highlighted that transaction is subject to China antitrust review. But beyond that, we're not going to add any additional color. I'll hand it to Alan on the 3D sensing question.

James，我是 Chris。我先回答第一個問題。所以在我們的事先準備發言中，我們強調該交易需接受中國反壟斷審查。但除此之外，我們不會再補充任何額外說明。我把 3D 感測的問題交給 Alan。

Yes. Our customers don't share a lot and they ask us not to share a lot with respect to inventory and demand. So I prefer not to comment.

是的。我們的客戶不會分享太多，而且他們也要求我們不要就庫存與需求分享太多資訊。所以我傾向不予評論。

Okay. And to clarify your guidance, I mean, can you kind of go through it business by business here. What are you expecting the up versus down? Is it sequential downtick in the midpoint? Is it all 3D sensing? Telecom is up, what's commercial lasers doing? It's obviously capacity constraints. And also maybe you could comment on the trends for OpEx and gross margin at a high level in your guidance?

好的。另外，為了釐清您的財測指引，我的意思是，您能否按業務別帶我們走一遍？您預期哪些會上升、哪些會下降？以中位數來看，是不是會出現季對季的小幅下滑？是否全部都是 3D 感測的影響？電信是成長，那商用雷射表現如何？顯然有產能限制。另外，您也許可以就指引中 OpEx 與毛利率的趨勢做一個高層次的評論？

Yes. So James, in terms of what we said in terms of direction, yes, so 3D sensing obviously will be down primarily because of seasonality. All others are going to be up. In terms of what's baked into the guide from a gross margin standpoint, gross margins will be down a bit from the Q3 or March levels, primarily again because of the 3D sensing and the mix impact. OpEx levels, so the OpEx levels will be probably similar to what we saw in the March quarter, plus or minus 100 basis points or so.

是的。所以 James，就我們所說的方向而言，是的，3D 感測顯然會下滑，主要是因為季節性因素。其他所有業務都會成長。就指引中毛利率的假設而言，毛利率會比 Q3 或 3 月季度水準略降，主要同樣是因為 3D 感測以及產品組合的影響。至於 OpEx 水準，OpEx 大概會與 3 月季度相近，上下約 100 個基點左右。

Your next question comes from the line of Tejas Venkatesh from UBS.

您的下一個問題來自 UBS 的 Tejas Venkatesh。

I was hoping you could comment on gross margin again. You mentioned datacom as a reason it came below Street expectations, but I was wondering if it's reflective of ASP pressure at all in 3D sensing?

我希望您能再評論一下毛利率。您提到資料通訊（datacom）是低於市場預期的原因之一，但我想知道這是否也反映了 3D 感測的 ASP 壓力？

So Tejas, in terms of pricing, we're not seeing anything unusual from a pricing standpoint company-wide in terms of our price points today versus what we've seen historically. As we had mentioned, in terms of gross margins, pressures in Optical Communications, datacom has been very, very dilutive in terms of our gross margins. We're unable to make money in that marketplace today. And Alan had talked a little bit about some of the strategic reasons for continuing in that regard. We are able to cover our cash costs and be able to make some variable margin. And that's why it still makes sense to stay there as well as our customers and strategic reasons for the next generations of product. Also, we've got a little bit of dilution there from the Thailand manufacturing costs to start up.

所以 Tejas，就定價而言，我們目前在全公司範圍內沒有看到任何異常的價格狀況；就我們今天的價格點相較於歷史水準而言也是如此。如同我們提到的，就毛利率而言，光通訊（Optical Communications）方面的壓力，資料通訊對我們的毛利率稀釋非常、非常嚴重。我們目前在那個市場無法獲利。而 Alan 也談到了一些在該領域持續投入的策略性原因。我們能夠覆蓋現金成本，並取得一些變動毛利。因此，基於我們的客戶以及下一代產品的策略性考量，繼續留在那裡仍然合理。另外，泰國製造的啟動成本也帶來了一些稀釋。

And is fiber laser demand still driven by the major Japanese customer? Is -- or is demand broadening?

那麼，光纖雷射的需求仍然主要由日本的大客戶所帶動嗎？還是——需求正在擴大？

Yes. Historic demand is still mainly the Amada relationship we have. And as I said in the prepared remarks, later this year, we'll be introducing our own turnkey fiber laser, which is a complete solution that other customers will readily purchase and put it into their tools as an alternative to [this sea] supply or other technologies, CO2 for instance. We're broadening our customer base later this year.

是的。歷史需求仍主要來自我們與 Amada 的合作關係。而如我在事先準備發言中所說，今年稍晚我們將推出自有的交鑰匙光纖雷射，這是一個完整解決方案，其他客戶將可直接採購並整合到他們的設備中，作為 [this sea] 供應或其他技術（例如 CO2）的替代方案。我們會在今年稍晚擴大客戶基礎。

Got it. And one final one. I was hoping you could comment on why you aren't seeing the same sort of sequential decline for 3D sensing in the June quarter as some others in the supply chain of this major mobility customer?

了解。最後一個問題。我希望您能評論一下，為什麼您在 6 月季度沒有看到 3D 感測出現與供應鏈中其他公司（針對這家主要行動裝置客戶）相同幅度的季對季下滑？

Well, I think we did say that sequentially, the June quarter is going to be down from a seasonality standpoint and all other products will be up.

嗯，我想我們確實說過，從季節性角度來看，6 月季度會較前一季下滑，而其他所有產品都會成長。

Your next question comes from the line of David Williams from Drexel Hamilton.

您的下一個問題來自 Drexel Hamilton 的 David Williams。

I wanted to see if you could give us a little indication or maybe what you're seeing in the Android space and kind of those adoption trends? And what your expectations are for maybe the OEMs as we head into the first half of '19?

我想看看您是否能給我們一些指標，或是您在 Android 陣營看到的情況，以及那邊的採用趨勢？另外，當我們邁向 2019 年上半年時，您對 OEM 的預期是什麼？

Well, we're engaged with several of those customers. And as they finalize their designs and get past the pilot stage of build, they'll be introducing models that include 3D sensing. I'd say that our expectations are that most of these customers will introduce this technology and capability on a high-end phone and then it'll proliferate over time. So I'd say that our expectations in the calendar '19 will be a modest start, but a ramp-up from then as it gets on to more and more of the models and further down into their product line.

嗯，我們與其中幾家客戶都有合作。當他們完成設計定案並且走過試產（pilot）階段後，他們就會推出包含 3D 感測的機型。我會說，我們的預期是，多數這些客戶會先在高階手機導入這項技術與能力，然後隨時間推進逐步普及。所以我會說，我們對 2019 年曆年的預期是溫和起步，但之後會隨著更多機型導入、並往其產品線更下游延伸而逐步加速成長。

Great. And then maybe can you rank order -- the geography from maybe a strength standpoint where you're seeing the most demand maybe to the least demand?

很好。那麼您能否按需求強弱，對地理區域做個排序——從需求最強到最弱？

On which product?

針對哪一項產品？

Well, I guess company-wide. What are you seeing in terms of -- from a geographic standpoint, do you see anything stronger out of China, I guess, today than you are in some of your North American customers? Or where do you, I guess, see the greatest strengths overall?

嗯，我想是全公司層面。就地理區域而言，您看到什麼情況——例如您今天是否看到來自中國的動能比某些北美客戶更強？或者您認為整體而言最強的動能在哪裡？

Well, I think you have to look product by product or area by area. For example, in terms of telecom transport with ROADMs, we're seeing very strong demand here in North America, but that doesn't mean China is not growing either. There is some strength in China that's coming up. Most of our business in terms of where we ship product to is heavily weighted to shipping product internationally, and more specifically, into the Asia region. And so it's hard for us to know exactly where that product ends up over time. But in terms of strength, we are seeing strength across the globe at this point in time.

嗯，我認為必須按產品別或領域別來看。例如，就採用 ROADM 的電信傳輸而言，我們在北美看到非常強勁的需求，但這並不代表中國沒有成長。中國也有一些正在浮現的強勁動能。就我們的出貨目的地而言，我們的業務很大一部分比重是將產品出貨到海外，更具體來說是亞洲地區。因此，對我們來說很難精確掌握這些產品隨時間推移最終流向何處。但就強勁程度而言，目前我們看到全球各地都呈現強勁需求。

Our next question comes from the line of Meta Marshall from Morgan Stanley.

我們的下一個問題來自 Morgan Stanley 的 Meta Marshall。

First question on datacom and just where your thoughts are currently about the timing of the 400 gig transition and when could see some uptick there? And then second question, just on the use of 3D sensing in Android, any trends as far as what the use cases are of security versus AI and if there's anything -- discernible trends currently?

第一個問題是關於資料通訊（datacom），想請教您目前對於 400G 轉換時程的看法，以及何時可能在那邊看到一些回升？第二個問題是關於 Android 端採用 3D 感測，從安全性對比 AI 的使用情境來看，有沒有任何趨勢？以及目前是否有任何——可辨識的趨勢？

Sure. So I think timing of 400G is still a ways out. I don't think we'll see anything meaningful until the end of calendar '19 and into early 2020. I'd say from a 3D sensing Android market, it varies and they don't tell us what they're doing with some of their -- they're all very, very secretive. So I think from that perspective, it's hard to really comment or know. I can only speculate at this point in time and I'd hate to even speculate.

好的。我認為 400G 的時點仍然還要一段時間。我不認為在 2019 年曆年年底之前、以及進入 2020 年初之前，會看到任何有意義的進展。至於 Android 的 3D 感測市場，情況不一，而且他們不會告訴我們他們在做什麼——他們都非常、非常保密。所以從這個角度來看，很難真正評論或了解。我目前只能推測，而我也不想甚至去推測。

Great. And then -- sorry, just a follow-up on Doug's question. I just missed -- when you said on the China uptick in the second half of '19, were you referring to fiscal year or calendar year?

了解。然後——抱歉，再追問一下 Doug 的問題。我剛剛漏聽了——您提到 2019 年下半年中國的回升時，您指的是會計年度還是曆年？

Doug's question. I was speaking specifically about ROADMs and the growth in ROADMs. In the second half of calendar '19, expectations are that they become more meaningful ROADMs. They're off of a pretty good base today, but we expect more meaningful deployments within China as well as our customers they're exporting from China.

Doug 的問題。我講的是特別針對 ROADM，以及 ROADM 的成長。在 2019 年曆年下半年，預期 ROADM 會變得更具意義。目前基期已經相當不錯，但我們預期在中國境內，以及我們客戶從中國出口的部分，都會有更具意義的部署。

Your next question comes from the line of Mitch Nordon from B. Riley & Co.

下一個問題來自 B. Riley & Co. 的 Mitch Nordon。

Just with regard to 2 things. ZTE, what's your view there? You took a small reserve in the quarter. Going forward, how are you viewing that? And secondly, with regard to the -- you cited the merger proxy, but we haven't seen that yet and it has been about a month and a half. When might we get a look at that?

我有兩點想問。關於中興（ZTE），你們怎麼看？你們在本季提列了一小筆準備。往後你們如何看待這件事？第二，關於——你們提到合併委託書（merger proxy），但我們還沒看到，而且已經大約一個半月了。我們何時可能看到那份文件？

So in terms of -- this is Aaron. In terms of the impact of ZTE on the Lumentum business -- and that's what we can comment on. Like I had mentioned in the prepared remarks, the business with ZTE has been, looking backward in the last 12 months, less than 0.5% of total revenue. So the impact is minimal for us. We did take a charge of $3.5 million for an inventory reserve, primarily because of the ban, not being able to ship to ZTE. The inventory is going to be excess and potentially obsolete and we can't reconfigure that or use it for any other customers, so we've written it down.

就——我是 Aaron。就中興對 Lumentum 業務的影響——這是我們能評論的部分。如同我在事先準備的發言中提到的，回顧過去 12 個月，與中興的業務占總營收不到 0.5%。因此對我們的影響很小。我們確實提列了 350 萬美元的存貨備抵費用，主要是因為禁令導致無法出貨給中興。這些存貨將會變成多餘且可能過時，我們也無法重新配置或用於其他客戶，因此我們已將其減記。

Yes, and this is Chris. On the comment on the filing of the S4, yes, we will file an S4. We are not going to comment on any timing at this point in time.

是的，我是 Chris。關於提交 S-4 的評論，是的，我們會提交 S-4。但目前我們不會對任何時程發表評論。

Just curious. I mean, you're talking about this transaction being a major milestone for you, yet you seem hesitant to talk about the transaction and it appears to be a compelling transaction. Can you speak to -- is this related to the ZTE news? Or why not tout the benefits that you touted back on March 12?

只是好奇。我的意思是，你們說這筆交易對你們而言是重大里程碑，但你們似乎又對談論這筆交易有所保留，而且看起來這是一筆很有吸引力的交易。你們能否談談——這是否與中興的消息有關？或者為什麼不再強調你們在 3 月 12 日所強調的那些好處？

I don't think we're not touting the benefits of March 12. You're asking procedural questions about a transaction, which we don't have information to share at this point in time.

我不認為我們沒有強調 3 月 12 日所提到的好處。你問的是交易流程性的問題，而我們目前沒有資訊可以分享。

Your next question comes from the line of Jun Zhang from Rosenblatt Securities.

下一個問題來自 Rosenblatt Securities 的 Jun Zhang。

Could you talk a little bit about the VCSEL content and pricing trends compared with the [first division] in a smartphone 3D sensing module in order to support this market model to adding some of the new functions for applications for their 3D sensing in the second half this year? And also could you talk a bit -- a little bit about the current lead time for the VCSEL [retrieve of] wafer production and 3D sensing module shipments to the end client. So considering this lead time, would you start shipping the new VCSEL in the month of June for the main model ramp in the second half?

你們能否談談 VCSEL 的含量（content）以及相較於智慧型手機 3D 感測模組中的 [first division] 的定價趨勢，以支持這個市場模型在今年下半年為其 3D 感測新增一些新功能／應用？另外也想請你們談談——目前 VCSEL [retrieve of] 晶圓生產，以及 3D 感測模組出貨到終端客戶的交期（lead time）。因此考量這個交期，你們是否會在 6 月開始出貨新的 VCSEL，以支援下半年主要機種的放量？

I'm sorry, Jun. We had a little bit of trouble hearing your first question. Can you repeat your question, please?

抱歉，Jun。我們在聽你第一個問題時有點聽不清楚。可以請你再重複一次問題嗎？

My first question is about the VCSEL content and the pricing trends compared with the [first] model to support the new function or applications in the 3D sensing in the second half this year.

我的第一個問題是關於 VCSEL 的含量以及相較於 [first] 機種的定價趨勢，以支援今年下半年 3D 感測的新功能或應用。

Yes. So we're not going to comment on specific customer pricing. I would say that pricing usually is a function of chip size and the yield of those chips. And so I think from our perspective, we're comfortable with our pricing and our yields and our costs to be able to maintain better than corporate average margins on all of our 3D sensing products. Lead times for VCSELs -- after we ship the VCSEL, our customer doesn't tell us their lead times or their yields. So it's hard for me to comment on that. Given our guidance for 3D sensing in the June quarter, I would say that it would be very limited new products that would be shipped in the June quarter for the second half new product introduction -- should there be new products introduced.

是的。我們不會評論特定客戶的定價。我會說，定價通常取決於晶片尺寸以及這些晶片的良率。因此從我們的角度來看，我們對自身的定價、良率與成本感到有信心，能在所有 3D 感測產品上維持高於公司平均的毛利率。至於 VCSEL 的交期——在我們出貨 VCSEL 之後，我們的客戶不會告訴我們他們的交期或良率。所以我很難評論。依據我們對 6 月季度 3D 感測的指引，我會說在 6 月季度為了下半年新產品導入而出貨的新產品將會非常有限——如果確實有新產品導入的話。

Okay. Got it. And also, could you talk a little bit about how we see the benefits from bringing manufacturing in totally with the further expansion in the Thailand factory?

好的。了解。另外，你們能否談談，隨著泰國工廠進一步擴產、把製造完全內製（in house）後，我們會如何看到其帶來的效益？

Yes. So in terms of bringing manufacturing in house, today the data rates are far more advanced than they were many years ago. And so we did have internal production 10 years ago or so in China. And today, we believe that we're going to have some benefits with regards to improving flexibility, overall cycle time to bring new products to market to satisfy customer requirements, improve quality and reduce cost, right? There has to be a good compelling return on investment for doing this. In terms of our manufacturing model, that's not to say that we're moving away from contract manufacturers. We're going to continue to use a hybrid model, and we will have partnerships that we have today and continue to use contract manufacturers where it makes sense.

好的。就把製造內製而言，如今的資料速率比多年前先進得多。大約 10 年前左右，我們在中國就有內部生產。而今天，我們相信這將在提升彈性、縮短整體週期時間（讓新產品更快上市以滿足客戶需求）、提升品質與降低成本等方面帶來一些效益，對吧？做這件事必須要有良好且具說服力的投資報酬。就我們的製造模式而言，這並不表示我們要遠離委外代工廠（contract manufacturers）。我們會持續採用混合模式（hybrid model），並維持我們目前的合作夥伴關係，在合理之處繼續使用委外代工廠。

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

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

Two questions. One on the comm side and one on 3D, I guess they're kind of related. And this has to do with the magnitude of the decline you're forecasting for 3D and what that says about guidance across the rest of the business. Assuming it's in the range of what you saw and that is the sequential decline in 3D sensing revenue in the March quarter, in June, or somewhere in that neighborhood, now it looks to me imply a significant uptick in acceleration on the telecom side. I wonder if you can comment on whether that's the case?

兩個問題。一個關於通訊（comm）端，一個關於 3D，我想它們有點相關。這與你們預測 3D 下滑幅度的大小，以及這對其餘業務指引所代表的意涵有關。假設 3D 感測營收在 6 月季度的季減幅度落在你們在 3 月季度看到的範圍，或大概在那個附近，那麼在我看來，這似乎意味著電信端會出現顯著的加速回升。我想請問你們能否評論是否確實如此？

Yes. So Tim, this is Aaron. Yes, in terms of the specific numbers, we won't quantify that, but that's correct. So in terms of 3D sensing, it is seasonally down, again, in the June quarter from the March quarter. The rest of the business will increase and most notably would be coming from telecom transport. We have a lot of demand today for ROADMs, pumps, amps, things that drive the network in terms of install.

是的。所以，Tim，我是 Aaron。是的，就具體數字而言，我們不會量化，但你的理解是正確的。因此，就 3D 感測而言，確實有季節性下滑，同樣地，在 6 月季度相較於 3 月季度是下滑的。其餘業務將會成長，其中最顯著的會來自電信傳輸。我們目前對 ROADM、泵浦、放大器等需求很大，這些都是在安裝層面推動網路建置的設備。

Okay. At least my interpretation is you expect an acceleration in that sequential growth rate from the 11% you saw in June, and you can comment on that, if you like. Moving over to the 3D sensing side. Coming out of OFC, some commentary around the company's -- Lumentum's VCSEL array capacity kind of running -- or standing at a level of 10 million units a week, which actually strangely marries up pretty nicely to kind of 100 million unit iPhone build plus some iPads in the second half, and depending on what you assume on pricing, I think puts revenue capacity on a quarterly basis well above peak levels you achieved in the second half or in the fourth quarter of last year. I wonder if you could talk to those capacity metrics, whether they make any sense and what sort of expectations we should have with regard to potential peak quarterly revenue levels in the second half when ostensibly phones are being built?

好的。至少我的解讀是，你們預期那個連續成長率會從你們在 6 月看到的 11% 加速，你若願意也可以評論一下。接著談 3D 感測這一塊。從 OFC 之後的一些評論來看，關於公司——Lumentum 的 VCSEL 陣列產能似乎在運轉——或維持在每週 1,000 萬顆的水準；而這其實很巧地與下半年約 1 億支 iPhone 的組裝量再加上一些 iPad 相當吻合；並且取決於你對價格的假設，我認為這會使得以季度為基礎的營收產能遠高於你們在去年下半年或去年第四季所達到的高峰水準。我想請你談談這些產能指標是否合理、是否有意義，以及在下半年（表面上手機正在組裝）時，我們對潛在的季度營收高峰水準應該抱持什麼樣的預期？

Yes. So I think, Tim, the -- if you recall the calendar Q4 ramp, we ramped production through that quarter and produced approximately $200 million of revenue, but we had more capacity exiting the quarter than we had entering the quarter and that capacity still exists. So I think you can extrapolate from there what our capacity is. And a lot of it has to do with the size of the chip and the yields, but I'm confident that our yields have increased since then. And I'm not going to comment on whether going into other products on existing customers or other, but I think you're not crazy with respect to your math on capacity.

是的。所以我想，Tim——如果你還記得曆年第四季的爬坡，我們在那一季逐步拉升產量，並創造了約 2 億美元的營收，但我們在該季結束時的產能高於季初，而那個產能目前仍然存在。所以我想你可以由此推算我們的產能大概是多少。而其中很大一部分取決於晶片尺寸與良率，但我有信心我們的良率自那時以來已經提升。至於是否會把既有客戶的既有產品延伸到其他產品或其他方面，我不予評論；但就你用數學推算產能而言，你的推算並不離譜。

Yes. And just to follow-up to what Alan just articulated, wafer fabs are very expensive. And In terms of -- the reason we've chosen this model in terms of using foundry partners is to, a, go up a ramp that steep that quickly and be able to reap the benefits. And then, when the cycle or the seasonality turns down, then we're not stuck with that fixed cost load on our balance sheet and income statement. A lot of benefits with the foundry model.

是的。另外補充 Alan 剛才所說，晶圓廠非常昂貴。而就——我們之所以選擇採用代工夥伴的模式，是為了：第一，能夠在那麼短的時間內以那麼陡峭的速度拉升產能並享受其效益。然後當景氣循環或季節性轉弱時，我們就不會在資產負債表與損益表上背負那樣的固定成本負擔。代工模式有很多好處。

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

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

I guess, most of mine will be probably on 3D sensing. Alan, I'm wondering if you look at your 3D sensing negotiations for customers in the calendar second half of the year, to what degree is capacity an important metric, meaning, maybe not as much coming from your other competitors versus other things like functionality, yield or ability to deliver on a short time frame. What are the most important metrics in those negotiations?

我想我大部分問題可能都會在 3D 感測上。Alan，我想請問你在與客戶就曆年下半年 3D 感測進行談判時，產能在多大程度上是一個重要指標？也就是說，重要性可能不一定來自你們其他競爭對手的壓力，而是來自其他因素，例如功能性、良率或在短時間內交付的能力。在這些談判中，最重要的指標是什麼？

Well, I mean, I think they all play into the equation. I think proven capability on scalability. I think reliability and dependability are super important as well. And we ship a lot of VCSELs at extremely high reliability rates and that goes a long way as well. So I think it's a combination of all of above. And I hope to be challenged again with respect to capacity. So I'm looking forward to the second half of the -- of calendar '18 rather to go up another significant ramp.

嗯，我的意思是，我認為它們都會納入考量。我認為已被證實的可擴充能力很重要。我認為可靠性與可依賴性也非常重要。而我們出貨大量 VCSEL，且可靠度水準極高，這也非常加分。所以我認為是以上各項的綜合。而我也希望再次在產能方面受到挑戰。所以我很期待曆年 2018 年下半年——更正，是曆年 2018 年下半年——再進行一次顯著的爬坡。

Just a follow-up on that, Alan. Are there any one of those characteristics that are more important as you get into the second half of the year or they're all kind of balanced?

就此再追問一下，Alan。當進入下半年時，這些特性之中是否有任何一項更重要，還是它們大致上是均衡的？

I mean, I think it's a function of how we are performing and how our competitors are performing and how we continue to gain confidence in our customers with respect to our ability to meet their needs and our ability to continue to ship high-performance, high-quality, very reliable product into their product [mix]. That's a huge concern of theirs with respect to making sure that every component works, every time we ship it. So I think it's a combination of all of the above and I'd say that reliability and performance -- the reliability and quality is super critical.

我的意思是，我認為這取決於我們的表現、競爭對手的表現，以及我們如何持續讓客戶對我們滿足其需求的能力、以及我們持續將高效能、高品質、非常可靠的產品出貨到他們的產品[組合]中的能力建立信心。他們非常在意的是要確保每一個元件在每一次出貨時都能正常運作。所以我認為是以上各項的綜合；我會說可靠性與效能——也就是可靠性與品質——是極其關鍵的。

Okay. Fair enough. My second question, again, on 3D sensing. In the prior question, you talked about changes in specs and you said some of them were modest changes and some of them were more radical. How long does it take to change a spec? And does that provide you any competitive advantage, given your long experience, and frankly, high volume experience in manufacturing after that as well?

好的。了解。我的第二個問題同樣是關於 3D 感測。在前一個問題中，你談到規格的變更，並表示其中一些是小幅變更、一些則更為激進。變更一個規格需要多久？而鑑於你們長期的經驗，坦白說也包括之後的高產量製造經驗，這是否能帶給你們任何競爭優勢？

Well, I think the comment around specs is around different customers and changes in design to address different functionality and different applications for various products and various customers. I'd say from the time that we engage with a customer until that product becomes production is 2 years. And so we're working on products today that we aren't going to introduce into production for 2 years from now. So that gives us confidence that our continued pipeline of new products and growth in 3D sensing -- as 3D sensing becomes more ubiquitous, I think, gives us excitement that this a long-term trend that has very good growth rate.

嗯，我認為關於規格的評論，是指不同客戶，以及為了因應不同功能與不同應用、針對各種產品與各種客戶所做的設計變更。我會說，從我們與客戶接觸到該產品進入量產，大約需要 2 年。因此，我們今天正在開發的產品，要到從現在起 2 年後才會導入量產。所以這讓我們對於 3D 感測持續的新產品管線與成長充滿信心——隨著 3D 感測變得更普及，我認為這讓我們感到振奮，因為這是一個具有良好成長率的長期趨勢。

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

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

Just a couple of pieces. Could you just remind us what you think your tax rate would just look like in FY '19? I know that's a little further out than you normally guide, but it is something that seems like it's a fairly important piece of the out-period puzzle.

只有幾個部分。你能否提醒我們，你認為 FY '19 的稅率大概會是什麼樣子？我知道這比你們通常提供指引的時間更遠一些，但這似乎是中長期模型中相當重要的一塊拼圖。

Sure, Alex. In terms of our tax rate, historically it's been relatively low. It's up 6% or so. In terms of '19, so with the -- we're still evaluating a lot of the new tax legislation, but it's our belief at this point in time that our tax rate will probably be somewhere in the 8.5% to 10% range. So modeling 9% is probably reasonable. Longer-term beyond '19, tax rate could go up to 11% to 12%.

當然，Alex。就我們的稅率而言，歷來一直相對偏低。目前大約上升了 6% 左右。至於 '19 年，因為——我們仍在評估許多新的稅法，但就目前我們的判斷，我們的稅率可能會落在 8.5% 到 10% 的區間。所以用 9% 來建模大概是合理的。更長期、超過 '19 年之後，稅率可能會上升到 11% 到 12%。

And going back to the Thai facility for a second, you've cited ramp-up cost as one of the elements that's pressuring gross margins. Can you give us some scaling of the magnitude of that? And what the trajectory is for that cost to fall back out as you get the benefit of that facility running more smoothly?

另外回到泰國廠區的議題，你們提到爬坡成本是壓抑毛利率的因素之一。你能否提供其規模的大致量級？以及隨著該廠運作更順暢、你們獲得效益後，這項成本回落的軌跡會是如何？

Sure. It's probably close to 100 basis points of impact to gross margin. And as we look forward here, we're continuously ramping and investing. And it's probably 5 quarters to 6 quarters of continued dilution until we hit a breakeven point.

當然。對毛利率的影響可能接近100個基點。而展望未來，我們會持續擴產並投入投資。在達到損益兩平之前，可能還會有約5到6個季度的持續稀釋。

Okay. And going back to 3D sensing, if I could, very briefly. There was a lot of discussion about other competitors ramping some capacity in 3D sensing, a lot of noise around [Pendisar] getting [Sherman] up. But the other side of that coin, there's been a fair amount of concern around the yields that -- at [Alan] being a pressure point in constraining their ability to supply. Can you talk a little bit about how as you went into -- as we go into the seasonal trough period that's reflected into the relative shares, are you gaining share in the June quarter as a result of being the dominant supplier and the best yield? Or is any of the competitors bringing capacity up that would in turn result in some diminishment of your share as we go into that seasonal trough?

好的。再回到3D感測，如果可以的話，簡短問一下。市場上有很多討論提到其他競爭對手在3D感測上擴增一些產能，關於[Pendisar]把[Sherman]拉升起來也有很多雜音。但另一方面，也有相當多的擔憂在於良率——在[Alan]那邊成為壓力點，限制了他們的供應能力。你能否談談，當你們進入——當我們進入反映在相對市占上的季節性淡季期間，你們是否因為是主導供應商且良率最佳，而在6月季度取得市占提升？或者，是否有任何競爭對手把產能拉升，進而在我們進入該季節性淡季時導致你們的市占有所下滑？

Well, Alex -- I mean, I think we've had such high share, I'd be surprised if we're gaining share from where we've been in the past. I don't know that we're losing it either. As we went up the ramp a year ago, there were challenges in -- that we lived through. And we used facilities that are used to making high-volume, 3-inch gallium arsenide before. So I think, while there's a learning curve that everyone has to go through, we had a jump start on it. So I can't really speculate on what's going on with our competitors. It's probably a better question to ask them. I think just anecdotically, based on what some of our competitors have said in the past, I'd say that we still have a significantly high share of the existing market. And we expect to do that as we go forward with new designs and new customers and new products that we have in our pipeline.

嗯，Alex——我的意思是，我們的市占一直非常高，所以如果我們還能在過去的基礎上再提升市占，我會感到意外。但我也不覺得我們正在失去市占。在一年前我們拉升產能時，確實也經歷過一些挑戰。而我們使用的是以前就用來生產高產量、3吋砷化鎵的廠房。所以我認為，雖然每個人都必須經歷學習曲線，但我們有先行的優勢。因此我無法真正去推測競爭對手的情況。這可能更適合去問他們。不過就一些軼聞來看，根據部分競爭對手過去的說法，我會說我們在既有市場仍然擁有顯著的高市占。而隨著我們管線中的新設計、新客戶與新產品往前推進，我們也預期能維持這樣的表現。

One last question, then I'll cede the floor. On the edge 3D products, to what extent do you see your ability to sustain the same high level of share in that space? Do you see any difference in the competitive landscape there? And when do you think the edge side of the market starts to metastasize into a meaningful contributor?

最後一個問題，然後我就把時間讓出來。在邊緣發射（edge）3D產品方面，你們在多大程度上認為自己能夠維持同樣高的市占水準？你們是否看到那裡的競爭態勢有任何不同？以及你認為邊緣端市場何時會開始擴散成為一個有意義的貢獻者？

Well, I think from a competitive landscape, there are fewer competitors in the world that can make edge-emitters for 3D sensing. So from that perspective, I expect that our share will be large. I can't predict how our competitor will perform with respect to the ramp of edge-emitters. I'd say that while we're relatively small volume today, we expect that to pick up as we look at the beginning of calendar '19 in more of a meaningful way.

嗯，我認為從競爭態勢來看，全球能為3D感測製造邊緣發射器的競爭對手更少。因此從這個角度，我預期我們的市占會很大。我無法預測競爭對手在邊緣發射器拉升方面的表現。我會說，雖然我們目前的量相對還小，但我們預期在日曆年'19年初會以更有意義的方式開始放量。

Your last question comes from the line of Dave Kang from FBR Riley.

你最後一個問題來自FBR Riley的Dave Kang。

First of all, clarification. Alan, did you say that China ROADM cycle will really begin in second half calendar '19 or fiscal '19? Just wanted to clarify.

首先，釐清一下。Alan，你是說中國ROADM週期會在日曆年'19年下半年才真正開始，還是會在會計年度'19年？只是想確認一下。

I think we're seeing a pickup in order rates as we speak. So we'll see growth in the June quarter in China. I'd say that more meaningfully, deployments within China will happen in the second half of calendar '18.

我想我們現在就看到訂單速度正在回升。所以我們會在中國於6月季度看到成長。我會說，更有意義的部分是，中國境內的部署將會在日曆年'18年下半年發生。

Calendar '18, got it. All right. And then on the datacom side, as far as gross margin is concerned, so right now it's dilutive. When you introduce new products later this year, will their products have corporate average gross margin or will they still be below corporate average?

日曆年'18年，了解。好。那再談數據通訊（datacom）這邊，就毛利率而言，目前是稀釋的。當你們在今年稍晚推出新產品時，這些產品的毛利率會達到公司平均水準，還是仍會低於公司平均？

Yes. So a lot of that's going to depend upon what the market prices are going to dictate, Dave. Right now, it's our belief that we're going to be able to be very competitive and be able to make decent money with it, but we'll have to wait until that point in time and see. And then, depending...

是的。Dave，這其中很大一部分將取決於市場價格會如何決定。目前我們相信我們能夠非常有競爭力，並且能從中賺到不錯的利潤，但我們必須等到那個時間點再看。然後，取決於……

Certainly, a whole lot closer to corporate average than we are today.

當然，會比我們今天的狀況更接近公司平均水準。

And then are we targeting like maybe September, December, any granularity?

那我們的目標是大概9月、12月之類的時間點嗎？能否再細一點？

I would say it's in that September, October timeframe that we'd see volume picking up on those products. And that's why we've stayed engaged with the hyperscale guys even at margins that are not very attractive at this point in time. We want to have that footprint and that experience and be able to prove to them that we can be a reliable supplier with high-quality shipments on time. And so we're going through that now in anticipation of having this low-cost product coming out in a few months.

我會說大概在9月、10月那個時間範圍，我們會看到這些產品的出貨量開始增加。這也是為什麼即使在目前毛利率並不吸引人的情況下，我們仍持續與超大規模（hyperscale）客戶保持合作。我們希望建立那個市場足跡與經驗，並能向他們證明我們可以成為可靠的供應商，按時交付高品質的出貨。因此我們現在正在進行這些工作，為了幾個月後推出這款低成本產品做準備。

There are no further questions at this time. I will now turn the call back over to Mr. Alan Lowe, President and CEO, for closing remarks.

目前沒有進一步的問題。我現在把電話交回給總裁兼執行長Alan Lowe先生，請他做結語。

Thank you, Kelly. I want to thank our customers for their business and partnership. I also want to thank our employees for all their hard work and putting us into an excellent position for long-term growth. 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.

謝謝你，Kelly。我要感謝我們的客戶對我們的業務支持與合作夥伴關係。我也要感謝我們的員工辛勤付出，讓我們處於一個非常有利於長期成長的優秀位置。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，我們期待在3個月後再次與各位交流。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以掛線。