Lumentum Holdings Inc. (LITE) 2019 Q2 法說會逐字稿

Good morning. My name is Matthew, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Second Quarter Fiscal Year 2019 Lumentum Earnings Conference Call. (Operator Instructions)

早安。我叫 Matthew，今天將擔任本次電話會議的接線員。此刻，我謹代表公司歡迎各位參加 Lumentum 2019 會計年度第二季財報電話會議。(接線員指示)

Chris Coldren, Interim CFO and Senior Vice President, you may begin your conference.

臨時財務長兼資深副總裁 Chris Coldren，您可以開始主持會議。

Thank you, Matthew. Welcome to Lumentum's Second Quarter Fiscal 2019 Earnings Call. As Matthew highlighted, this is Chris Coldren, Interim Chief Financial Officer. Joining me on today's call are Alan Lowe, President and Chief Executive Officer; and Jim Fanucchi from Darrow Associates, who is helping us with Investor Relations.

謝謝你，Matthew。歡迎各位參加 Lumentum 2019 會計年度第二季財報電話會議。如 Matthew 所提到的，我是 Chris Coldren，臨時財務長。今天與我一同出席的還有總裁兼執行長 Alan Lowe；以及來自 Darrow Associates 的 Jim Fanucchi，他正在協助我們的投資人關係工作。

This call will include forward-looking statements, including statements regarding the markets in which we participate, including potential market sizes, trends and expectations for products and technology, including product development and projected new product releases, purchasing trends and demand for our products, our expected financial performance, expenses and positions in the market as well as statements regarding our recent acquisition of Oclaro. 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-K filing, which was filed with the SEC on August 29, 2018, and the registrations statement on Form S-4 relating to our acquisition of Oclaro, which was declared effective on May 31, 2018, and in our 10-Q for the second quarter fiscal 2019, which we expect to file with the SEC later this week. 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.

本次電話會議將包含前瞻性陳述，包括關於我們所參與之市場的陳述（包含潛在市場規模、趨勢與對產品及技術的預期，包括產品開發與預計新產品發表）、採購趨勢與對我們產品的需求、我們預期的財務表現、費用與市場地位，以及關於我們近期收購 Oclaro 的陳述。這些陳述存在風險與不確定性，可能導致實際結果與我們目前的預期出現重大差異。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，特別是我們於 2018 年 8 月 29 日向 SEC 提交之 10-K 文件中所描述的風險因素，以及與收購 Oclaro 相關、於 2018 年 5 月 31 日宣告生效的 S-4 表格註冊聲明，並包括我們預計於本週稍晚向 SEC 提交的 2019 會計年度第二季 10-Q。我們在本次電話會議中所提供的前瞻性陳述（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。除非適用法律另有要求，Lumentum 不承擔更新上述陳述之義務。

Please also note, unless otherwise stated, all results and projections discussed on this call are non-GAAP. Non-GAAP financials should not be considered as a substitute for or superior to financials prepared in accordance with GAAP. Our press release with our second quarter fiscal 2019 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 today's earnings release. A recording of today's call will be available by 11:30 a.m. Pacific Time this morning on our website.

另請注意，除非另有說明，本次電話會議中討論的所有結果與預測均為非 GAAP。非 GAAP 財務數據不應被視為 GAAP 編製之財務數據的替代或更優者。我們已在網站 www.lumentum.com 的投資人（Investors）專區發布 2019 會計年度第二季業績新聞稿，其中包含更多關於非 GAAP 財務衡量指標的細節，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投影片。今日電話會議的錄音將於上午 11:30 前提供。太平洋時間今天上午將可在我們的網站上收聽。

Now, I would like to turn the call over to Alan for his comments and second quarter market and product highlights.

現在，我想把電話交給 Alan，請他發表評論並分享第二季的市場與產品重點。

Thank you, Chris. Good morning, everyone. I am very pleased to be here to discuss our second quarter results.

謝謝你，Chris。各位早安。我很高興能在此與各位討論我們第二季的業績表現。

First, I'd like to make some comments regarding our recent acquisition of Oclaro. On December 10, after receiving Antitrust approval from China and nearly 9 months after announcing it, we closed the acquisition. I believe joining forces with the talented employees of the former Oclaro has created the industry's strongest team and the industry's leading portfolio of telecom transmission and transport products.

首先，我想就我們近期收購 Oclaro 發表一些看法。12 月 10 日，在取得中國反壟斷核准、且距離我們宣布交易將近 9 個月後，我們完成了收購。我相信，與前 Oclaro 優秀員工的結合，已打造出業界最強的團隊，以及業界領先的電信傳輸與傳送產品組合。

Further, the combined team's capability in the design and manufacturing of high-performance indium phosphide lasers and photonic integrated circuits is unparalleled. The chemistry, cultural fit and shared purpose of the combined team is excellent. I cannot be more excited about our bright future together.

此外，合併後團隊在高效能磷化銦雷射與光子積體電路的設計與製造能力方面無與倫比。合併團隊之間的化學效應、文化契合度與共同使命感都非常出色。我對我們共同的光明未來感到無比振奮。

I would like to take this opportunity to review key elements of our acquisition's strategic rationale. The first is leadership at the indium phosphide photonic chip level. Photonic chips are of increasing importance to the full range of the world's rapidly expanding communication infrastructure spanning access, wireless, data center, metro and long-haul networks. Indium phosphide lasers and photonic integrated circuits and the only practical devices for generating the optimum wavelength of light for transmission over optical fiber. Customer requirements are unrelenting in their drive toward higher speed, lower power consumption, smaller size and lower cost.

我想藉此機會回顧本次收購策略理由的關鍵要素。第一項是在磷化銦光子晶片層級的領導地位。光子晶片對於全球快速擴張的通訊基礎建設全範圍而言日益重要，涵蓋接取、無線、資料中心、都會與長途網路。磷化銦雷射與光子積體電路是唯一實用的元件，可產生最適合在光纖上進行傳輸的最佳波長光。客戶需求持續且不間斷地推動更高速度、更低功耗、更小尺寸與更低成本。

Our thesis is that the only way to meet the future customer requirements in the optical communication transport -- transmission market and sustainably differentiate ourselves from our competition is innovation and economies of scale at the fundamental indium phosphide photonic chip level. We have employed this same strategy in the industrial and consumer markets with gallium arsenide materials, and we believe our success in these markets validates this strategy. We further believe indium phosphide could meaningfully penetrate consumer and automotive sensing market.

我們的核心觀點是：要在光通訊傳送—傳輸市場中滿足未來客戶需求，並以可持續方式與競爭對手形成差異化，唯一的方法是在最基礎的磷化銦光子晶片層級實現創新與規模經濟。我們在工業與消費市場中以砷化鎵材料採用同樣策略，且我們相信在這些市場的成功驗證了此策略。我們也進一步相信，磷化銦有機會在消費性與車用感測市場中實現具意義的滲透。

The second element of our acquisition rationale is to establish a clear leadership position and to improve the industry structure in the growing optical communications market. The world continues to become more reliant on ever-increasing amounts of data flowing through optical networks and data centers.

本次收購理由的第二項要素，是在成長中的光通訊市場建立明確的領導地位，並改善產業結構。全球持續更加依賴透過光網路與資料中心傳輸的、日益增加的大量資料。

Next-generation wireless and access technology, including 5G, will further accelerate network bandwidth requirements. The economics of 100G and higher-speed technologies along with ROADMs are becoming more favorable every day for network operators. This is accelerating the pace of global, long-haul, regional, DCI and metro network deployments utilized in these products and technologies. The optical communication components industry has long needed industry consolidation. We believe our acquisition of Oclaro has given us a first mover advantage in consolidation.

下一代無線與接取技術（包括 5G）將進一步加速網路頻寬需求。100G 與更高速技術以及 ROADM 的經濟性，對網路營運商而言每天都變得更具吸引力。這正加速全球長途、區域、DCI 與都會網路的部署步伐，而這些部署會採用上述產品與技術。光通訊元件產業長期以來一直需要產業整併。我們相信收購 Oclaro 讓我們在整併方面取得先行者優勢。

Further, we believe it has catalyzed and will accelerate further consolidation. The acquisition establishes leadership in high-speed transmission that complements our existing transport leadership. With market-leading products and technology and strong long-term customer relationships and a growing and consolidating industry, we are well positioned for long-term profitable growth. The final element of our acquisition rationale is to create options to profitably participate in the datacom market. It is anticipated that growth in hyper-scale data center build-outs and 5G wireless deployments will drive new levels of growth in the high-speed datacom market.

此外，我們相信此交易已促成並將加速進一步的整併。本次收購在高速傳輸領域建立領導地位，並與我們既有的傳送領導地位相互補強。憑藉市場領先的產品與技術、穩固的長期客戶關係，以及一個正在成長且整併中的產業，我們已為長期獲利成長做好準備。本次收購理由的最後一項要素，是創造可獲利參與資料通訊（datacom）市場的選項。預期超大規模資料中心建置與 5G 無線部署的成長，將推動高速 datacom 市場達到新的成長水準。

Profitability in these markets at the transceiver level is challenging. Hyper competition and limited product differentiation are driving rapid price declines. Though some competitors have left the market, we continue to see new competitors emerge at the transceiver module level, though none with indium phosphide chip capabilities. Combining with Oclaro gives us a differentiated leadership position across a range of photonic chips, on which the datacom, wireless and access markets critically rely. This creates new avenues to profitable growth through meaningful chip sales and more cost-competitive transceivers. In Chris' remarks, he will provide more details on the acquisition.

在這些市場中，以收發器層級實現獲利具有挑戰性。高度競爭與有限的產品差異化正推動價格快速下滑。儘管部分競爭對手已退出市場，我們仍持續看到在收發器模組層級出現新的競爭者，但沒有任何一家具備磷化銦晶片能力。與 Oclaro 的結合，使我們在一系列光子晶片上取得差異化的領導地位，而 datacom、無線與接取市場對這些晶片具有關鍵依賴。這將透過具規模的晶片銷售與更具成本競爭力的收發器，開創新的獲利成長途徑。在 Chris 的發言中，他將提供更多關於本次收購的細節。

Now turning to our second quarter results. Revenue at $373.7 million contained $29.6 million of contribution from the acquisition. Our prior guidance did not include any acquisition contribution. Excluding the acquisition, revenue came in at roughly the midpoint of our prior guidance. Strength in demand and manufacturing capacity expansions drove ROADM and fiber lasers to new record levels.

現在回到我們第二季的業績。營收為 3.737 億美元，其中包含本次收購貢獻的 2,960 萬美元。我們先前的財測並未納入任何收購貢獻。若排除收購影響，營收約落在我們先前財測區間的中點。需求強勁與製造產能擴充，帶動 ROADM 與光纖雷射營收創下新高紀錄。

Revenue from our Telecom product lines grew 21% sequentially, driven primarily by the strong growth in ROADMs -- ROADM sales and the 20 days of contribution from Oclaro's Telecom product lines. ROADM revenue grew 29% quarter-on-quarter and 110% relative to the prior year. Demand from our customers for our Telecom products is very strong and is spread across a broad customer and geographical base. We continue to add ROADM capacity, but demand will outstrip our ability to supply throughout the third quarter.

我們的電信產品線營收較前一季成長21%，主要受惠於ROADM的強勁成長——包括ROADM銷售，以及Oclaro電信產品線貢獻的20天營收。ROADM營收較前一季成長29%，較去年同期成長110%。客戶對我們電信產品的需求非常強勁，且分布於廣泛的客戶群與地理區域。我們持續增加ROADM產能，但在整個第三季期間，需求將超過我們的供應能力。

Datacom revenue was down slightly sequentially. The previously anticipated decline was partially offset by the acquired datacom revenues in the quarter. In the third quarter, we expect datacom revenue to decline relative to combined company historic levels. We continue to be selective in our sales of transceivers in this margin-challenged product area, and this is impacting revenue. With the closing of the acquisition, we now have chip sales in the datacom and 5G markets, which we expect we will continue to grow.

數據通訊（Datacom）營收較前一季小幅下滑。先前預期的下滑，部分被本季併購帶來的數據通訊營收所抵銷。在第三季，我們預期數據通訊營收將較合併公司歷史水準下滑。在此一毛利承壓的產品領域，我們持續對收發器（transceivers）銷售採取選擇性策略，這也正在影響營收。隨著併購完成，我們目前在數據通訊與5G市場也有晶片銷售，我們預期將持續成長。

Turning to our industrial and consumer product lines, which includes 3D sensing. As expected, second quarter revenues from industrial and consumer diode laser product lines were down 10% quarter-on-quarter, driven by softer demand for 3D sensing lasers. Android customer revenue came in as expected, and we continue to make excellent progress with additional Android customers and additional new design wins. The market for laser-based sensing is still in its infancy. We believe the market opportunity over the long run is tremendous, as the applications that use our lasers' enhanced security, safety and new functionality in the billions of electronic devices that people rely on every day. The seeds for this long-term to market opportunity continue to be planted.

接著談我們的工業與消費性產品線，其中包含3D感測。如預期，第二季工業與消費性二極體雷射產品線營收較前一季下滑10%，主要因3D感測雷射需求轉弱所致。Android客戶營收符合預期，我們也持續在更多Android客戶與更多新的設計導入（design wins）方面取得極佳進展。以雷射為基礎的感測市場仍處於萌芽階段。我們相信長期而言市場機會非常龐大，因為在數十億人們每日依賴的電子裝置中，使用我們雷射的應用可提升安全性、保障性並帶來新功能。這項長期市場機會的種子仍在持續播下。

During the second half of calendar 2018, additional customers announced or started shipping high-end 3D sensing-enabled devices. During calendar 2019, based on customer engagements we have today, we expect new and existing customers will announce and release additional new 3D sensing-enabled products. Several of these opportunities are expected to bring new functionality that could expand our content per device, including world-facing capabilities.

在2018年下半年，更多客戶宣布或開始出貨高階、支援3D感測的裝置。在2019年，根據我們目前與客戶的合作進展，我們預期新客戶與既有客戶將宣布並推出更多新的支援3D感測產品。其中數個機會預期將帶來新功能，可能提升我們在每台裝置中的內容價值（content per device），包括面向外部（world-facing）的能力。

We believe these new customer products are the first step to broad incorporation of 3D sensing in lower-priced, higher-volume devices in the years to come. The customer learnings, software APIs and supplier ecosystems developed in these initial products will enable and allow more rapid adoption of 3D sensing in subsequent product cycles. We believe our leadership position in the market is sustainable, and we will see strong growth in our 3D sensing business over the long run. We have a proven capability that customers around the world know they can rely upon. We have shipped hundreds of millions of devices with unmatched performance, quality and reliability. The advantage this experience gives us is a valuable attribute and is difficult to replicate and overcome.

我們相信這些新客戶產品是未來數年在更低價格、更高出貨量裝置中廣泛導入3D感測的第一步。在這些初期產品中累積的客戶學習、軟體API與供應商生態系，將使後續產品週期能更快速採用3D感測。我們相信我們在市場上的領先地位具可持續性，長期而言我們的3D感測業務將呈現強勁成長。我們具備經驗證的能力，全球客戶都知道可以信賴我們。我們已出貨數億台裝置，具備無可匹敵的效能、品質與可靠性。這些經驗帶來的優勢是一項珍貴特質，且難以複製與超越。

Customer requirements for the next several product generations to come require us to further push the edge of laser device technology and manufacturing capability. We believe the same technology differentiation and unique depth of experience that enabled our success today in the current-generation devices will be even more critical to future generations of 3D sensing lasers.

未來數代產品的客戶需求，要求我們進一步推進雷射元件技術與製造能力的前沿。我們相信，促成我們在當代裝置成功的同樣技術差異化與獨特深厚經驗，對未來世代的3D感測雷射將更為關鍵。

Our commercial lasers segment revenue was up 10% quarter-on-quarter and 9% relative to the prior year. During the second quarter, we benefited from capacity expansion and further ramped volumes of our newest fiber laser products to meet the strong customer demand. We again achieved record revenue from our Kilowatt-Class Fiber Lasers, which grew 12% sequentially and 133% relative to the prior year. We're making healthy investments in new laser product development and production capacity, targeting higher-growth material processing applications. In calendar 2019 and over the long run, we have good opportunities for growth, driven by new product design wins in addition to market growth.

我們的商用雷射事業部營收較前一季成長10%，較去年同期成長9%。第二季我們受惠於產能擴充，並進一步提升最新光纖雷射產品的出貨量，以滿足客戶強勁需求。我們的千瓦級（Kilowatt-Class）光纖雷射再度創下營收新高，較前一季成長12%，較去年同期成長133%。我們正對新雷射產品開發與生產產能進行穩健投資，鎖定成長更快的材料加工應用。在2019年以及長期而言，除市場成長外，新增產品設計導入也將帶動我們擁有良好的成長機會。

Throughout my remarks, I've highlighted significant long-term trends that create terrific market opportunities for Lumentum, and even more so, with the closing of the Oclaro acquisition. Further, I've highlighted our strategy to accelerate growth and drive sustainable margin expansion and customer and end market diversification. These are very exciting times at Lumentum for all of our stakeholders.

在我的談話中，我已強調多項重要的長期趨勢，為Lumentum帶來極佳的市場機會；而隨著Oclaro併購案完成，機會更為顯著。此外，我也說明了我們加速成長、推動可持續的毛利率擴張，以及客戶與終端市場多元化的策略。對Lumentum所有利害關係人而言，這是一段令人振奮的時期。

I will now hand it over to Chris for more details.

接下來我將交給Chris提供更多細節。

Thank you, Alan. I will first run through the second quarter financial results, add some additional details around the Oclaro acquisition and then provide our guidance for the third quarter. Net revenue for the second quarter was $373.7 million and included $29.6 million of revenue contribution from the Oclaro acquisition. GAAP gross margin for the second quarter was 33.4%. GAAP operating margin was 3.1%, and GAAP diluted net income per share was $0.08. Second quarter non-GAAP gross margin was 40.1%, which was approximately flat with the last quarter. Non-GAAP operating margin for the second quarter was 22%. Operating expenses totaled $67.5 million or 18.1% of revenue. R&D expense was $39.3 million and includes increased investments in new product development in addition to the added R&D expense from the acquisition.

謝謝你，Alan。我將先說明第二季財務結果，補充一些關於Oclaro併購案的細節，接著提供我們對第三季的指引。第二季淨營收為3.737億美元，其中包含Oclaro併購案貢獻的2,960萬美元營收。第二季GAAP毛利率為33.4%。GAAP營業利益率為3.1%，GAAP稀釋後每股淨利為0.08美元。第二季非GAAP毛利率為40.1%，與上一季大致持平。第二季非GAAP營業利益率為22%。營業費用合計6,750萬美元，占營收18.1%。研發費用為3,930萬美元，包含對新產品開發的增加投資，以及併購帶來的額外研發費用。

SG&A expense was $28.2 million. Non-GAAP net income was $78.3 million for the second quarter and includes $2 million of other income and a tax expense of $5.9 million. Included in the tax expense is a onetime tax adjustment of approximately $2.7 million due to the Oclaro acquisition impacting our full year estimated tax expense. Non-GAAP diluted net income per share was $1.15. This includes an approximate $0.04 negative impact to -- due to the aforementioned tax adjustment related to the acquisition and is based upon a fully diluted share count of 67.8 million. The share count includes approximately 2.4 million new shares due to the Oclaro acquisition being in the quarter for only 20 days.

銷售、一般及行政（SG&A）費用為2,820萬美元。第二季非GAAP淨利為7,830萬美元，其中包含200萬美元的其他收益，以及590萬美元的所得稅費用。所得稅費用中包含一次性稅務調整約270萬美元，係因Oclaro併購案影響我們全年預估所得稅費用所致。非GAAP稀釋後每股淨利為1.15美元。其中包含約0.04美元的負面影響——係由前述與併購相關的稅務調整所致，並以完全稀釋後股數6,780萬股為基礎。該股數包含約240萬股新股，原因是Oclaro併購案在本季僅納入20天。

Turning to the segment and product line details. Our Optical Communications segment revenue at $325.4 million increased 5% sequentially. Within our Optical Communications segment, Telecom revenue at $172.5 million was up 21% sequentially. Datacom revenue at $33.4 million was down 2% sequentially. Industrial and consumer revenue at $119.5 million was down 10% sequentially, due to lower low 3D sensing revenues. Optical Communications segment gross margin at 39.7% increased 60 basis points sequentially due to lower industrial and consumer in the revenue mix. Our laser segment revenue at $48.3 million increased 10% sequentially, driven by growth in fiber laser sales. Second quarter lasers gross margin was 42.7% and increased 240 basis points due to higher volumes and product cost reductions.

接著說明各事業部與產品線細節。我們光學通訊（Optical Communications）事業部營收為3.254億美元，較前一季成長5%。在光學通訊事業部中，電信（Telecom）營收為1.725億美元，較前一季成長21%。數據通訊（Datacom）營收為3,340萬美元，較前一季下滑2%。工業與消費性營收為1.195億美元，較前一季下滑10%，係因3D感測營收較低所致。光學通訊事業部毛利率為39.7%，較前一季提高60個基點，原因是營收組合中工業與消費性占比降低。我們雷射事業部營收為4,830萬美元，較前一季成長10%，主要由光纖雷射銷售成長帶動。第二季雷射毛利率為42.7%，因出貨量提高與產品成本下降而提升240個基點。

Now turning to more details on the acquisition. The stock portion of the acquisition consideration, excluding unvested stock tranche for continuing employees consisted of 11 million new Lumentum shares. The cash portion of the consideration was $964.8 million. The cash consideration was funded by the combined company's balance sheet, which at the end of the first quarter, preacquisition, had a total of approximately $1.1 billion in cash and short-term investments.

現在轉到收購的更多細節。收購對價中的股票部分（不含提供給留任員工之未歸屬股票分期）由1,100萬股新發行的Lumentum股票組成。對價中的現金部分為9.648億美元。該現金對價由合併後公司資產負債表提供資金；在第一季末、收購前，合併後公司約有11億美元的現金及短期投資。

The cash consideration was also funded by a new term loan of $500 million. After the paying of $964.8 million of the cash consideration and more than $50 million in fees related to the acquisition, between the 2 companies during the second quarter, our second quarter ending cash and short-term investments was $684.1 million. This is only $50.2 million lower than Lumentum's first quarter levels due to strong cash generation by the business during the quarter. The ongoing annual interest expense associated with the new term loan is LIBOR plus 250 basis points. Today this results in an approximate interest rate of 5% or $25 million per year in additional interest expense.

現金對價亦由一筆5億美元的新定期貸款提供資金。在支付9.648億美元現金對價以及與收購相關、兩家公司於第二季合計超過5,000萬美元的費用後，我們第二季期末的現金及短期投資為6.841億美元。由於本季業務強勁產生現金，該數字僅較Lumentum第一季水準低5,020萬美元。與該筆新定期貸款相關的持續年度利息費用為LIBOR加250個基點。以目前而言，約相當於5%的利率，或每年增加約2,500萬美元的利息費用。

Since we're focused on similar customers, geographies and manufacturing capabilities and purchase the same types of raw materials, we have strong, tangible expense synergy opportunities. As highlighted when we announced the acquisition, we believe these synergies will be in excess of $60 million per year within 12 to 24 months from the close of the transaction. To date, we estimate that we have achieved more than $10 million in annual expense synergies. We expect modest levels of new synergies to be attained in the third quarter, and then we expect synergy attainment will accelerate in the fourth quarter and into fiscal year 2020.

由於我們聚焦於相似的客戶、地理區域與製造能力，且採購相同類型的原材料，因此我們擁有強而有力、具體可見的費用協同機會。如同我們宣布收購時所強調的，我們相信自交易完成日起12至24個月內，這些協同效益每年將超過6,000萬美元。截至目前，我們估計已達成每年超過1,000萬美元的費用協同效益。我們預期第三季將取得溫和程度的新協同效益，之後在第四季以及進入2020會計年度時，協同效益的達成將加速。

Work done since the closing of the transaction gives us confidence in our ability to meet or exceed our expense reduction target. I think it is important to highlight these expense synergies did not include any increased revenue or profit due to new project differentiation or product roadmap acceleration resulting from the combined companies innovation engine. However, we believe over the long run, it is these types of synergies that will create the most long-term value and underpins our strategic rationale for the transaction.

自交易完成以來所做的工作，使我們對達成或超越費用削減目標的能力更具信心。我認為重要的是要強調，這些費用協同並未包含因新專案差異化或產品路線圖加速、由合併公司創新引擎所帶來的任何營收或利潤增加。然而，我們相信從長期來看，正是這類協同效益將創造最多的長期價值，並支撐我們對此交易的策略性理由。

Now onto our guidance for the third quarter of fiscal 2019. Noting again that all projections are on a non-GAAP basis and now include Oclaro for the full quarter. We project net revenue for the third quarter to be in the range of $420 million to $440 million, with the operating margin in the range of 16% to 18% and diluted net income per share to be in the range of $0.76 to $0.94. These projections incorporate an approximate share count of 77 million and tax expense of approximately $4 million at the midpoint of the range. Note, our third quarter projections have several million dollars of additional expense related to a reset of labor fringe rates in the new calendar year.

接著是我們對2019會計年度第三季的財測指引。再次說明，所有預測皆以非GAAP基礎編製，且現在已將Oclaro納入整個季度。我們預估第三季淨營收介於4.20億至4.40億美元之間，營業利益率介於16%至18%之間，稀釋後每股淨利介於0.76至0.94美元之間。這些預測在區間中點假設流通股數約7,700萬股，稅費約400萬美元。請注意，我們第三季預測包含數百萬美元的額外費用，與新曆年勞工附加福利費率的重設相關。

Notable quarter-on-quarter changes in product line revenue and our projections include commercial lasers increasing, primarily due to new product growth; industrial and consumer declining due to consumer electronics customer seasonality; Telecom increasing, driven by continued market growth and having a full quarter of the acquisition; and datacom increasing to $50 million to $55 million due to having a full quarter of the acquisition.

產品線營收的顯著季對季變化及我們的預測包括：商用雷射增加，主要來自新產品成長；工業與消費性產品因消費電子客戶的季節性而下滑；電信業務增加，受持續的市場成長以及收購案完整季度貢獻所帶動；以及資料通訊（datacom）因收購案完整季度貢獻而增加至5,000萬至5,500萬美元。

We're providing more clarity on the datacom projections, given the amount of change there has been in these product lines over the past few quarters. We don't expect to provide this level of detail on an ongoing basis.

鑑於過去幾個季度這些產品線的變動幅度，我們將就資料通訊（datacom）的預測提供更清楚的說明。我們不預期未來會持續提供這種程度的細節。

(Operator Instructions) Matthew, let's please begin the question-and-answer session.

（接線員指示）Matthew，請開始問答環節。

(Operator Instructions) Our first question comes from the line of Samik Chatterjee with JP Morgan.

（接線員指示）我們的第一個問題來自JP Morgan的Samik Chatterjee。

If I can start off with one just relating to the quarter itself. You -- kind of, on the revenue front, you came in, in line with expectation or kind of in line with guidance that you had issued, but on the operating margins, on the gross margins, you were lower. Is that kind of driven by the Oclaro integration and can you kind of help us with what's the starting point for Oclaro in terms of gross margins and operating margin that you are building off?

如果我可以先從本季本身相關的一個問題開始。你們——在營收方面，你們的表現符合預期或大致符合你們先前給出的指引，但在營業利益率、毛利率方面則較低。這是否主要是由Oclaro整合所驅動？你們能否協助我們了解，你們在建立模型時，Oclaro的毛利率與營業利益率起點大概是多少？

I'll make a couple of remarks, and see if Alan has any additional. I would say first is the product mix so obviously, with the decline in 3D sensing that has an impact to margin. And then further, we're not going to break out any Oclaro gross margin. There's no Oclaro going forward. Those product lines have been merged with ours. But certainly, if you go back and look at prior quarters, Oclaro had been running below where our 40% gross margin was in the prior quarter. So there is some level of dilution of margin associated with acquisition.

我先做幾點說明，看看Alan是否有補充。我想第一點是產品組合；很明顯地，3D感測的下滑會對毛利率造成影響。另外，我們不會拆分揭露任何Oclaro的毛利率。未來不再有「Oclaro」這個區分。那些產品線已與我們的產品線合併。但當然，如果你回頭看前幾個季度，Oclaro的水準一直低於我們上一季40%的毛利率。因此，收購確實帶來一定程度的毛利率稀釋。

Okay. And so if I can just follow up on -- with the 3D sensing question. You are obviously expecting lot of product launches from the Android guys, and you have position on those launches. How should we think about the ramp-up on those volumes? What are your expectations in terms of when deep volumes on Android smartphones for you guys becomes comparable to kind of volumes with your lead customer? Is it kind of a 1-year time horizon? Are you thinking about it as a multiyear time horizon before you kind of see more diversification on your 3D sensing customer base?

了解。那我就3D感測的問題追問一下。你們顯然預期Android陣營會有很多產品發表，而且你們在那些發表中有布局。我們應該如何看待那些出貨量的爬坡？就你們而言，你們預期Android智慧型手機的3D感測出貨量，何時會與你們主要客戶的出貨量相當？是大約1年的時間範圍嗎？還是你們認為在看到3D感測客戶基礎更分散之前，會是多年的時間範圍？

Yes. I'd say that we're expecting more diversification throughout this calendar year. It's hard for me to predict when the Android 3D sensing business will -- the half of our 3D sensing business, but there's certainly plenty of potential for that to happen. And I think the key to that is moving from the high-end devices that are in the market today to more the midrange, lower-cost, higher-volume products. And that really is in our customers' hands, so we're providing them the technology and capability to announce those products. It's just not clear to us when exactly that will happen. But I think, it will happen, and it's just a matter of time.

是的。我會說，我們預期在今年整個曆年期間會看到更多元化。我很難預測Android的3D感測業務何時會——達到我們3D感測業務的一半，但確實有很大的潛力發生。我認為關鍵在於，從目前市場上的高階裝置，轉向更多中階、低成本、且更高出貨量的產品。而這真的掌握在我們客戶手中；我們提供他們技術與能力去發布那些產品。只是我們不清楚確切會在何時發生。但我認為它會發生，只是時間問題。

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

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

Great. I would like to talk a little bit about the Oclaro acquisition, post the conclusion of it. Really focusing on what your expectations are in terms of pairing out redundant revenues and much lower margin type products that were in the Oclaro mix. Obviously, it's a pretty nice chunk of change coming in, in terms of revenues, but I assume that you're going to pair some of that stuff out. So it'd be helpful to have some sense of what the impact is both on terms of reduction in revenues from line consolidation as well as the impact on margins from that?

很好。我想在Oclaro收購完成後，談一談這筆收購。主要聚焦在你們對於剔除重複營收、以及Oclaro組合中那些毛利率更低的產品類型，你們的預期是什麼。顯然，就營收而言這是一大塊貢獻，但我假設你們會把其中一些項目剔除。因此，如果能讓我們了解，產品線整併導致的營收減少影響，以及由此對毛利率的影響，會很有幫助？

Yes, I mean I think you've already seen a part of that in our guide for datacom, and that's why we were very specific about the absolute revenue in the $50 million to $55 million in Q3. We are going through the product rationalization as well as fab utilization optimization, and we'll be talking to our customers later this quarter and putting in place the actions to drive to the lowest-cost product or the highest-margin product where appropriate, where there is overlap, but the overlap is pretty minimal, and we expect to drive those to conclusion throughout this calendar year.

是的，我的意思是，我想你們已經在我們針對資料通訊（datacom）的指引中看到其中一部分了，這也是為什麼我們在第三季（Q3）對於絕對營收非常明確地給出 5,000 萬至 5,500 萬美元的區間。我們正在進行產品精簡（product rationalization）以及晶圓廠（fab）產能利用率最佳化，並且我們會在本季稍晚與客戶溝通，並採取行動，在有重疊之處（但重疊其實相當有限）推動轉向最低成本產品或在適當情況下轉向最高毛利產品；我們預期在本曆年內把這些推動到結論。

Is it reasonable to think of $50 million to $100 million kind of range for line pairing?

把產品線配對（line pairing）想成 5,000 萬到 1 億美元左右的範圍，這樣合理嗎？

Well, I think if you go back in history and look at the 2 company's datacom business, you'll see that there's a good chunk of that already out of our Q3 guide in datacom. There will be more product rationalization, so it's not unconceivable that we hit that number. But I think...

嗯，我想如果你回頭看歷史、看看兩家公司在資料通訊（datacom）業務上的表現，你會看到其中有相當一部分其實已經反映在我們第三季（Q3）對 datacom 的指引裡了。還會有更多的產品精簡，所以達到那個數字並非不可想像。但我想……

Great.

很好。

I think on the other side, we're focused on driving innovation to grow our healthy new products faster, so we're hoping that, that will more than offset the product pairing.

我想另一方面，我們專注於推動創新，讓我們健康的新產品更快成長，所以我們希望那將足以、甚至超過，抵銷產品配對帶來的影響。

And the margins on those are sub-20 gross? Is that kind of the right range?

而那些的毛利率是在 20% 以下嗎？大概是這樣的區間嗎？

On which?

你指的是哪一部分？

On the stuff you're pairing.

你們正在配對的那些產品。

There is some that are much more challenged than that, that we're taking action with, and that's, again, one of the reasons you saw the guide on datacom in the short run.

其中有一些比那個水準更具挑戰，我們正在採取行動處理；而這也再次是你在短期內看到我們對資料通訊（datacom）給出那樣指引的原因之一。

One last question, then I concede the floor. The 3D sensing, obviously, the -- Apple brought in numbers pretty sharply in the fourth quarter. There seems to be a wide lay of estimates for the upcoming quarter. I assume that what we're looking at here is a supply chain that had 8 to 10 weeks worth of process in it that takes time for that to run through. Hence, I would assume that, that would result in a very low number for the March quarter. Is that the right thought process?

最後一個問題，然後我就把時間讓出來。3D 感測方面，很明顯地，Apple 在第四季把數字下修得相當明顯。對於接下來一季，市場估計差異很大。我假設我們看到的是供應鏈中有 8 到 10 週的在製流程（process）存量，需要時間才能消化完。因此，我會假設這會導致 3 月季度的數字非常低。這樣的思路對嗎？

Well, I'll give you my thoughts, and Chris can add to it. If you remember, it was November 12 when we got the first heads-up. And so there was action taken during the December quarter that was very different than the end of calendar 2017, where the heads-up came very, very late. It's not even into early part of the calendar year. So there was -- there's been adjustments both from our supply chain as well as, I think, through our customer supply chain and the module integrators to address some of that, so that the buildup is not nearly like it was a year ago. That said, we don't have total visibility beyond what -- beyond our walls, but we are taking a conservative approach with respect to March quarter guide and then whatever's remaining for the June quarter in the numbers we provided. Chris, you have anything?

嗯，我先說說我的看法，Chris 也可以補充。如果你記得的話，我們是在 11 月 12 日第一次收到預警（heads-up）。因此在 12 月季度期間採取的行動，和 2017 年曆年末很不一樣；當時的預警來得非常、非常晚。甚至不是在曆年初期。所以我們的供應鏈，以及我認為客戶的供應鏈與模組整合商（module integrators）都做了調整來處理其中一些問題，使得累積（buildup）不像一年前那麼嚴重。話雖如此，我們對於牆外（beyond our walls）的情況並沒有完全的能見度；因此我們在 3 月季度的指引上採取保守作法，而在我們提供的數字中，剩餘的部分則落在 6 月季度。Chris，你有要補充嗎？

I have nothing further.

我沒有其他補充。

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

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

I wanted to ask about the ROADM business in particular. I'd like to get some updates, just my rough math suggest that the quarter you reported was $90 million, $95 million in sales, and I understand you've added capacity. So just, sort of, trying to get an idea of how you see that particular line of business trending? And I'd like to include in your answer some thoughts on the competitive landscape, and how that's evolving?

我想特別問一下 ROADM 業務。我想聽一些最新進展；按我粗略的計算，你們所報告的那一季銷售額大約是 9,000 萬到 9,500 萬美元，而且我理解你們已經增加了產能。所以我想大致了解一下，你們如何看待這條業務線的走勢？另外也希望你們在回答中談談競爭態勢，以及它如何演變？

Sure. I don't think your math is too far off, Simon. And I'd say that growing by 30% or 29% quarter-on-quarter was no simple task. Had we been able to grow another 30%, we would have sold all of that product as well. So there is still tremendous amount of pent-up demand for our leading-edge technology from twin 1x20 to even higher port count. And now on the end-by-end product line where, I'd say, we have, if not years leadership in those kinds of products. So we're expecting, and we're seeing continued demand strength across all of the regions from Europe to China to North America on all of those products. At the same time, we're starting to see continued strength at the low-end edge ROADM where, historically, we had not had such a competitive offering. We announced a very competitive offering in calendar '18, and that product line is sold out. So it's a broad range of product demand that our customers are asking us for. And I think we -- from a competitive landscape standpoint, we're out in front and continue to invest to maintain that leadership to continue to have a large share of that market.

好的。Simon，我不認為你的計算差太遠。我會說，單季季增 30% 或 29% 並不是一件容易的事。如果我們能再多成長 30%，那些產品我們也都能賣掉。所以市場對我們領先技術仍有非常龐大的未滿足需求，從雙 1x20 到更高埠數（port count）。而且現在在端到端（end-by-end）的產品線上，我會說我們在這類產品上擁有（即便不是多年）也至少是領先地位。因此我們預期、也看到所有地區從歐洲到中國到北美，對這些產品的需求持續強勁。同時，我們也開始看到在低階邊緣（low-end edge）ROADM 的需求持續強勁；過去我們在那一段並沒有那麼具競爭力的產品。我們在 2018 年曆年宣布了一個非常具競爭力的方案，而那條產品線已經售罄。所以客戶向我們提出的是非常廣泛的產品需求。而我認為，從競爭態勢來看，我們走在前面，並且持續投資以維持領先，繼續在該市場中取得較大的市占。

And just as a follow-up, I wonder if you could give us your perspective on the 3D sensing market in terms of 2 opportunities, as I see them, one, world facing; and two, 5G. How either of those could play into the opportunities as we look out beyond calendar '19 perhaps?

再追問一下，我想請你們談談對 3D 感測市場的看法，從我看到的兩個機會來看：第一是後置（world facing）；第二是 5G。當我們把視野放到可能超過 2019 年曆年之後，這兩者各自可能如何影響機會？

Well, I think from world facing, we have multiple designs with multiple customers, pretty much across the board, and the who's who in mobile devices working on time-of-flight world-facing sensors. And so we're very confident in our leadership ability to meet the market demands of these products where the technology continues to evolve and get pushed. So I think that will come into fruition. It's already starting to shift. We'll see more and more devices throughout calendar '19 as well as into calendar '20. And I think, the interesting thing there is that the whole new set of application use cases that should drive our customers to want to introduce those things sooner. So that's, again, out of our hands, we're just enabling the technology and the capability. As far as 5G is concerned, I mean, that's really more of a question for our customers and when they come out with 5G-capable handsets and what they put on those devices. So hard for me to say, but I'll tell you that the carriers are getting ready and investing. So it's coming.

嗯，我想在後置（world facing）方面，我們與多家客戶有多個設計案，基本上涵蓋各方；行動裝置領域的重量級廠商（who's who）都在開發飛時測距（time-of-flight）的後置感測器。因此我們對於自身的領先能力很有信心，能滿足這些產品的市場需求；而技術仍在持續演進並被推向更高要求。所以我認為那會逐步開花結果。它已經開始在轉變。我們會在 2019 年曆年以及進入 2020 年曆年看到越來越多的裝置採用。而我認為有趣的是，會出現一整套新的應用情境（use cases），應該會驅動我們的客戶更想更早導入這些功能。所以那部分再次不是我們能決定的；我們只是提供技術與能力。至於 5G，我的意思是，那其實更像是要問我們的客戶：他們何時推出支援 5G 的手機，以及他們在那些裝置上會放入什麼。所以我很難說，但我可以告訴你，電信營運商正在準備並投入資本。所以它會到來。

(Operator Instructions) Our next person is Michael Genovese with MKM Partners.

(接線員指示) 我們下一位是來自 MKM Partners 的 Michael Genovese。

First question on the ROADM demand, specifically in China, can you discuss from your perspective the evidence that these are real tenders turning into real deployments by multiple carriers versus whether it is inventory build going on? So what's your view on that?

第一個問題是關於 ROADM 需求，特別是在中國。你能否從你們的角度談談，有哪些證據顯示這些是真實的標案（tenders）正在轉化為多家營運商的實際部署，而不是正在發生的庫存建立（inventory build）？所以你們對此的看法是什麼？

Yes, I mean we have direct interaction with the carriers in China, and they have -- this is beyond those pilot type of deployment, this is real deployment that are happening today. And so based on the constant pressure from our customers, executives across the globe, including in China, I have to believe that there is not a tremendous amount of inventory buildup. But again, we don't have full visibility for that. I will say that we know that product that we shipped into our network equipment manufacturers in China are ending up being deployed in the field. And so that gives us confidence that these are real demand that our customers need and are deploying, and it's verified by the carriers in China.

是的，我的意思是我們與中國的電信營運商有直接互動，而且他們——這已經超越那些試點式的部署，這是今天正在發生的真正部署。因此，基於我們客戶、全球各地（包括中國）的高階主管所施加的持續壓力，我必須相信並沒有大量的庫存堆積。但再說一次，我們對此並沒有完全的能見度。我會說，我們知道我們出貨給中國的網路設備製造商的產品，最後都被部署到現場。因此，這讓我們有信心，這些是真實的需求，是我們客戶需要並正在部署的，而且也由中國的電信營運商加以驗證。

Yes, I'd add that our engagement with our lead customers as well as the carriers in China date back several years. And while we don't, as Alan said, have great visibility per se into inventory levels at our customer, at least the rate of deployment that was advertised when we kicked off these programs between our network equipment manufacturer customers and the carriers seem to be what's coming to fruition. So they're not -- it's not a recent surge, if you will, we've seen in ROADM sales out of the blue. It's very consistent with the several-year roadmap that we've had between the equipment manufacturers and the carriers.

是的，我補充一下，我們與主要客戶以及中國電信營運商的合作可追溯到好幾年前。而且雖然我們——如 Alan 所說——就客戶端的庫存水位而言，並沒有很好的能見度，但至少在我們啟動這些計畫時，由我們的網路設備製造商客戶與營運商所宣稱的部署速度，看起來正逐步實現。所以它們並不是——如果你願意這麼說——我們突然看到 ROADM 銷售憑空出現的近期激增。這與我們在設備製造商與營運商之間所建立的多年期路線圖非常一致。

I think the other thing, Michael, is that with these higher port count ROADMs and more complex ROADMs, the average selling price is substantially higher than a 1x9 edge ROADM that we sell and have been selling for many, many years. So part of the uptick in ROADM revenue is average selling price in these 1x32 type devices where it's multiple factors of higher price compared to a normal [one in] our competitors. So...

我想另一點，Michael，是隨著這些更高埠數的 ROADM 以及更複雜的 ROADM，其平均銷售價格相較於我們多年來一直在賣的 1x9 邊緣型 ROADM 要高出許多。因此，ROADM 營收上升的一部分來自這些 1x32 類裝置的平均銷售價格——相較於一般（我們競爭對手的）產品，價格高出好幾倍，受到多重因素影響。所以……

Okay, great. And then as a follow-up, this strength, I know you talked about a 100% year-over-year growth. It does seem to be concentrated in ROADM area. You're probably also seeing it in pumps and amps, some other type of very high double-digit growth rate. But what about the pull-through to transmission, and specifically, the Oclaro portfolio. Are we going to see specifically, for these metro builds, are the regions like China or other regions where the Oclaro demand is still in front of us that's going to catch up with this strong ROADM demand we're seeing -- or I guess, another way of asking is why is this so concentrated in ROADMs? And will it broaden out at some points?

好的，很棒。接著追問一下，這股強勁動能，我知道你提到年對年 100% 的成長。看起來似乎集中在 ROADM 領域。你們可能也在泵浦與放大器等其他產品看到某些非常高的雙位數成長率。但傳輸端的帶動效應（pull-through）如何？特別是 Oclaro 的產品組合。我們是否會看到，具體而言，針對這些都會區建設，像中國或其他地區，Oclaro 的需求仍在前方、將會追上我們目前看到的強勁 ROADM 需求——或者換個問法，為什麼會如此集中在 ROADM？而它會在某個時間點擴散到其他領域嗎？

Yes. I would say, there's a couple of pieces to that, Mike. First, it's certainly, we expect ROADMs as -- ROADMs and pumps and other transport products as a leading indicator, if you will, of future transmission deployments, given you need to put the ROADM and the amplifier infrastructure in generally ahead of the transmission infrastructure. I would say though that we're seeing disproportionate growth in the transport, and particularly ROADM space, simply because previously there were not significant deployments in China that were ROADM based, but there were 100 gig, 200 gig ports deployed. Whether that be in long-haul and then switching to regional. So we expect to see great growth in the transmission, as you said using the word pull-through. But I think the ROADM piece is a bit more pronounced, given from a geographical standpoint. China not being a large consumer, domestically at least that is, of ROADMs in the past and now they're. Now with that said also, China's consumption, at least our Chinese customers there -- if we summed up all of their ROADM consumption, it's still below their share of the world's networking market. And therefore, we continue to believe there's continued growth -- above market growth and bringing our Chinese customers up to the levels that they should be purchasing ROADMs at.

是的。我會說，Mike，這裡有幾個面向。首先，當然，我們預期 ROADM——ROADM、泵浦以及其他傳輸產品——可視為未來傳輸部署的領先指標，因為一般而言，你需要先建置 ROADM 與放大器等基礎設施，之後才會建置傳輸基礎設施。不過我也會說，我們在傳輸、尤其是 ROADM 領域看到不成比例的成長，單純是因為過去中國並沒有大量以 ROADM 為基礎的部署，但卻已有 100G、200G 埠的部署。不論是在長途（long-haul）之後再轉向區域網。因此，我們預期傳輸端會有很好的成長，正如你所說的「帶動效應」。但我認為 ROADM 的部分更為突出，主要是地理因素所致。中國過去在國內部署上並不是 ROADM 的大量消費者，而現在他們是。此外，中國的消耗量——至少就我們在那裡的中國客戶而言——如果把他們所有的 ROADM 消耗加總起來，仍低於他們在全球網路市場中的市占份額。因此，我們仍然相信還會有持續成長——高於市場的成長，並讓我們的中國客戶提升到他們理應採購 ROADM 的水準。

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

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

I wanted to dive into a couple of things. First on the industrial laser business. I know that you guys have tried to expand capacity to be able to meet more than the needs of just your kind of one major customer. I just wanted to get a sense of are you selling to multiple customers at this point? Would you expect to, kind of, by the end of the fiscal year and just what -- if you're not, kind of what level of revenues should we think of as being the threshold to meeting other customer needs? And then maybe just a second, more logistical one. On splitting the -- if we can get split of the S29.6 million for Oclaro between telecom and datacom for the quarter would be helpful?

我想深入探討幾件事。首先是工業雷射業務。我知道你們一直嘗試擴充產能，以便能滿足不僅僅是你們某一個主要客戶的需求。我想了解的是，你們目前是否已經在賣給多個客戶？你們是否預期在本會計年度結束前會做到？如果還沒有，那我們應該把多少營收水準視為能夠滿足其他客戶需求的門檻？然後第二個可能比較偏物流/拆分的問題。如果可以的話，能否提供本季 Oclaro 的 2,960 萬美元在電信與數據通訊（datacom）之間的拆分？這會很有幫助。

Yes, maybe I'll start with the latter first and let Alan answer the former. The $29.6 million was approximately equally split between datacom and telecom.

是的，也許我先回答後者，前者讓 Alan 來回答。這 2,960 萬美元在數據通訊與電信之間大約各占一半。

And as far as our commercial lasers business and record revenues in fiber lasers, that's still our primary fiber laser customer, and we still have some catching up to do. So we still have not met their overall demand. We're getting closer this quarter. And once we do that and satisfy their needs, then we'll look at penetrating outside of that customer. So I wouldn't expect meaningful revenue this fiscal year. I think, it will be more into fiscal 2020.

至於我們的商用雷射業務以及光纖雷射創紀錄的營收，目前仍主要來自我們的核心光纖雷射客戶，而我們仍有一些差距需要追趕。所以我們仍尚未滿足他們的整體需求。本季我們更接近了。一旦我們做到並滿足他們的需求之後，我們才會考慮向該客戶以外的市場滲透。因此，我不預期本會計年度會有具意義的營收。我認為會更落在 2020 會計年度。

Our next question comes from the line of Thejeswi Venkatesh with UBS.

我們下一個問題來自 UBS 的 Thejeswi Venkatesh。

With the acquisition of Oclaro, you now obviously have a deep presence both at Huawei and ZTE. Both of those systems customers have been in the news quite a bit recently. So I was hoping you could characterize overall Chinese demand to the extent you can on these 2 customers?

隨著收購 Oclaro，你們現在顯然在華為與中興都有很深的布局。這兩家系統客戶最近在新聞上出現得相當頻繁。因此我希望你們能在可行的範圍內，針對這兩家客戶，描述一下整體中國需求的情況？

Well as we said earlier, the ROADM demand in China because of it being nonexistent a year ago for domestic deployments is quite strong today at all of the leading network equipment manufacturers in China, including the 2 you mentioned, but there are others. I would say that the relationship with both of them is very strong. I can't control what's going on between the 2 countries, I wish I could. But I'd say that at this point in time, we're working with them closely across the range of products from telecom transport, next generation ROADMs through the next generation of transmission from ACOs to DCOs and 400 gig. So I'd say that the relationship engagement is broad and very strong at this point.

嗯，如我們先前所說，由於一年前在中國國內部署中 ROADM 幾乎不存在，因此今天在中國所有領先的網路設備製造商——包括你提到的那兩家，當然也還有其他家——ROADM 需求都相當強勁。我會說，我們與他們兩家的關係都非常穩固。我無法控制兩國之間正在發生的事情，我希望我可以。但我會說，就目前而言，我們正與他們在各產品線上緊密合作，從電信傳輸、下一代 ROADM，一直到下一代傳輸產品，從 ACO 到 DCO 以及 400G。所以我會說，目前合作的廣度與強度都非常高。

Yes, I'd say our aggregate exposure between those 2 customers is still less than their exposure, if you will, to their markets, which you can argue is a good or bad thing. It's a bad thing in that we want to grow that, ultimately, over the long run. But vice versa, if there's concerns about any interruption of business with them, yes, we have exposure and that would be very painful to lose that business, but we're not overexposed to it relative to most other participants in the market.

是的，我會說，我們對這兩家客戶的合計曝險，仍低於他們對其市場的曝險（如果你願意這麼說），你可以認為這是好事或壞事。壞的一面是，從長期來看，我們最終希望把這部分做大。但反過來說，如果有人擔心與他們之間的業務會有任何中斷，是的，我們確實有曝險，失去那筆業務會非常痛苦，但相較於市場上多數其他參與者，我們並沒有在這方面過度曝險。

Got it. And with respect to your lead customer -- lead 3D sensing customer, any change in the competitive situation as you look out into the phones launched in the second half of 2019? I assume, by now you have a fair sense of what that could look like?

了解。那麼就您主要客戶——主要的 3D 感測客戶而言，當您展望 2019 年下半年推出的手機時，競爭態勢有任何變化嗎？我想，到現在您應該已經相當清楚那可能會是什麼樣子了吧？

Yes, I think, we're still very happy with our share of the production shipments that we've today. And I would say that we're very happy with where we're positioned for next-generation new designs, whether that be front facing or world facing across the product and customer portfolio. So as I said in the prepared remarks, the next generation of devices is pushing the technology for higher identification, higher wall-plug efficiency and things like that don't allow people just to catch up because they have the capability today to make yesterday's product. So we're pretty excited about where we're and how engaged we're with many, many customers R&D development efforts as part of their extension of their development. So I couldn't be happier with where we are.

是的，我認為我們對目前生產出貨中的市占仍然非常滿意。而且我會說，對於下一代新設計——不論是前置或後置、涵蓋整個產品與客戶組合——我們對自身的布局位置也非常滿意。所以如同我在事先準備的發言中提到的，下一代裝置正推動技術朝向更高的辨識能力、更高的牆插效率（wall-plug efficiency）等方向發展，這些都不會讓別人僅僅因為今天有能力做出昨天的產品就能追上來。因此我們對目前的狀態相當振奮，也很投入於許多、許多客戶的研發開發工作，作為他們延伸開發的一部分。所以我對我們目前的處境再滿意不過了。

And our 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 want to go back to the datacom side. Could you just kind of clarify what your strategy is to differentiate on the datacom side? Is that a market you're leaning to? Is that something that faster speeds will lean into your strength? What exactly are you thinking about on the datacom side?

我想回到資料通訊（datacom）這一塊。您能否稍微釐清一下，你們在資料通訊端的差異化策略是什麼？這是你們會更傾向投入的市場嗎？更快的速度是否會更凸顯你們的優勢？你們在資料通訊端到底在思考什麼？

Yes. So from a datacom standpoint, we're very excited about the market opportunity because there's an awful lot of volume that ships in that market, both between datacom and wireless. The real challenging puzzle to figure out has been profitability, particularly at the transceiver level over the past several years. So what we think the Oclaro acquisition brings to us -- there's a couple of things: First is meaningful chip sales, which is operating at a different level in the sort of ecosystem or food chain, if you will, where it may not have the same kind of rapid price reductions et cetera, that are occurring at the transceiver level because there's fewer competitors than there are at the transceiver level. There's also much more significant barriers to entry and a much more focus on leading-edge technology. So as you said, as we look to higher and higher speeds or lower and lower power consumption at a given speed or wider environmental operating range, those are all things that play into now the combined company strength. With world-class chip capabilities, if there's a way to make money at the transceiver level then we expect with that chip capability, we would be in the running as best as anybody else could be at the transceiver level. That remains to be seen, obviously, because we also have to see what the competition is doing and where prices land in that space. So again, our strategy is to focus on where we have the best technology, lead with that, and then choose where to play in the market where there are a bit -- an ability to make money.

是的。從資料通訊的角度來看，我們對市場機會非常興奮，因為該市場的出貨量非常大，涵蓋資料通訊與無線兩端。過去幾年真正難解的課題一直是獲利能力，特別是在收發器（transceiver）層級。因此我們認為 Oclaro 的併購為我們帶來——有幾件事：第一是具規模的晶片銷售，這是在生態系或供應鏈（如果你願意這麼說）中不同的層級運作；相較於收發器層級，晶片層級可能不會面臨同樣快速的降價等情況，因為晶片層級的競爭者比收發器層級更少。此外，進入門檻也高得多，且更聚焦於領先的尖端技術。所以如你所說，當我們追求越來越高的速度、或在既定速度下越來越低的功耗、或更寬的環境操作範圍時，這些都會發揮合併後公司整體優勢。憑藉世界級的晶片能力，如果在收發器層級有辦法賺錢，那麼我們預期憑這樣的晶片能力，我們在收發器層級的競爭力不會輸給任何人。當然這仍有待觀察，因為我們也必須看看競爭對手在做什麼，以及該領域的價格最後落在哪裡。所以再說一次，我們的策略是聚焦在我們擁有最佳技術的地方，以此領先，然後選擇在市場中那些——有一定——獲利能力的區塊參與。

Okay. And then as a follow-up, what chips exactly are you thinking about? Are those photonic integrated circuits? Are those DSPs? What chips?

好的。那追問一下，你們具體在想的是哪些晶片？是光子積體電路（photonic integrated circuits）嗎？是 DSP 嗎？是哪一類晶片？

So these are lasers, so either directly modulated or EMLs, electro-absorption modulated lasers as well as some receiver products to transmit and receive indium phosphide chips.

這些是雷射晶片，包括直接調變（directly modulated）或 EML（電吸收調變雷射，electro-absorption modulated lasers），以及一些接收端產品，用於發射與接收的磷化銦（indium phosphide）晶片。

Our next question comes from the line of Rod Hall with Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）的 Rod Hall。

I guess, I wanted to start on lasers' margins and just see, I know you said that you think that eventually could get to 50%. Could you just comment on kind of whether that's still reasonable to think, it eventually gets there? And what sort of trajectory it might have? And then I have a follow-up to that.

我想先從雷射的毛利率談起。我知道你之前說你認為最終可能達到 50%。你能否評論一下，這樣的目標是否仍然合理——也就是最終能達到那個水準？以及它可能會是什麼樣的走勢？然後我還有一個追問。

Sure, Rod, this is Alan. Yes, I think that there's a clear path to 50% gross margin on lasers. Part of it has to do with volume, obviously, but part of it also has to do with the mix between fiber laser and our micromachining business where typically in the fiscal Q1 and Q2, the micromachining revenue is low. And so as that comes up and has higher than average lasers' gross margin, that will pull up the gross margin of lasers overall. I'd say that as we continue to move more and more of our laser-diode packages into our own factory in Thailand, we're seeing cost reductions that you saw part of the benefit in the gross margin improvement in fiscal Q2. We're going to continue to see that as we drive costs down. That will also help our gross margin. So I think that the combination of driving costs down on fiber laser as well as a mix towards additional micromachining should get us there before the end of the fiscal...

當然，Rod，我是 Alan。是的，我認為雷射毛利率達到 50% 有一條清晰的路徑。其中一部分當然與出貨量有關，但另一部分也與產品組合有關：在光纖雷射與我們的微加工（micromachining）業務之間，通常在會計年度的 Q1 和 Q2，微加工營收較低。因此當微加工營收回升，且其雷射毛利率通常高於平均水準時，就會拉升整體雷射的毛利率。我會說，隨著我們持續把越來越多的雷射二極體封裝（laser-diode packages）移到我們在泰國的自有工廠，我們正看到成本下降；你在會計年度 Q2 的毛利率改善中已看到部分效益。隨著我們推動成本下降，這種情況會持續。這也會幫助我們的毛利率。所以我認為，降低光纖雷射成本，再加上產品組合朝更多微加工傾斜的綜合效果，應該能讓我們在本會計年度結束前達到……

Okay, Thanks, Alan. I wanted to come back to the 3D sensing in the guide and just check the pricing situation. I mean, we would anticipate like 10% year-over-year declines. Is that sort of in the ballpark of what you're seeing? Or is pricing, particularly in the big, big sole, we're interested in what's happening with the pricing trajectory? And also, I'd be interested in your thoughts on inventory like how much module inventory might be out there? Is that perturbing the guide?

好的，謝謝，Alan。我想回到指引（guide）中的 3D 感測，確認一下定價狀況。我的意思是，我們原本預期年對年大概下滑 10%。這大致符合你們看到的情況嗎？或者定價——特別是在那個非常、非常大的單一客戶（sole）那邊——我們想知道定價走勢到底如何？另外，我也想聽聽你對庫存的看法：外面可能有多少模組庫存？這是否在擾動你們的指引？

Yes. I'm reluctant to be talking about our 3D sensing pricing, given that I'm sure our competitors are listening to this call. So you can imagine prices go down over time and whether that's low single digits or in the double digits, I'll let you be the judge of that. As far as module inventory, we really don't have much visibility of that, both at the module integrators as well as at the next step in the process. So I will say that we're shipping units today and so it gives me visibility that they're continuing to build new modules, but that it's hard to extrapolate anything else other than that.

是的。我不太願意談我們 3D 感測的定價，因為我確定競爭對手也在聽這通電話會議。所以你可以想像價格會隨時間下降；至於是低個位數還是雙位數，就留給你自行判斷。至於模組庫存，我們其實沒有太多能見度，不論是在模組整合商那邊，或是在流程的下一個環節。所以我只能說，我們今天仍在出貨，這讓我看得到他們仍在持續組裝新的模組，但除此之外很難再外推其他結論。

Our next question come from the line of John Marchetti with Stifel.

下一個問題來自 Stifel 的 John Marchetti。

Maybe just a quick follow-up on that inventory side. You had obviously a big jump in your inventory levels at the end of the quarter. Curious as to how much of that maybe comes from the addition of the Oclaro business coming in? And then how much of that is 3D sensing or VCSEL inventory that didn't sell through, given some of the cuts that you've seen at your big customer?

也許就庫存那一塊快速追問一下。你們在季度末的庫存水位顯然大幅跳升。我想了解其中有多少可能是因為併入 Oclaro 業務所帶來的增加？另外又有多少是 3D 感測或 VCSEL 庫存沒有順利消化（sell-through），考量到你們在那個大客戶那邊看到的一些削減？

Yes, so John, this is Chris. There's very little or immaterial change in 3D sensing inventory on our balance sheet. What you're seeing is a combination of both the Oclaro inventory as you would think about it coming over as well as the accounting associated with the acquisition where that inventory is stepped up in value. So that causes the inventory value to swell with it.

是的，John，我是 Chris。我們資產負債表上的 3D 感測庫存變動非常小或可忽略不計。你看到的是兩部分的組合：一是如你所想、隨 Oclaro 併入而帶來的庫存；二是與收購相關的會計處理，該庫存的價值被調升。因此庫存價值會隨之膨脹。

I'd say the only inventory build that we're having is as we wind down our Chinese based contract manufacturer, we're building up some inventory to be able to move that equipment into Thailand and not disrupt the ability to supply our customers. So there was high single digits of inventory growth, but done on purpose to make sure that we make an orderly transition to our factory in Thailand.

我想我們唯一在增加的庫存是：當我們逐步結束位於中國的合約製造商時，我們會先建立一些庫存，以便把設備移到泰國，同時不影響對客戶的供應能力。因此庫存成長是高個位數百分比，但這是刻意為之，以確保我們能有序地轉移到泰國的工廠。

Got it. And then maybe just as a follow-up, for Chris. How should we think about sort of the normalized OpEx levels here, as we look to the back half for the fiscal year? Just trying to get a sense for, obviously, we had a partial contribution in the December quarter, but just trying to think of where we're from an expense perspective as we start to think about the second half of the fiscal year?

了解。那再追問一下，給 Chris。我們在看本財年下半年時，應該如何看待這裡較為正常化的營業費用（OpEx）水準？只是想掌握一下，顯然我們在 12 月季度只有部分貢獻，但想從費用角度理解，當我們開始思考本財年下半年時，費用大概會落在什麼位置？

Yes. So we really only guide one quarter a time. And obviously, as we look to attain synergies, which will bring down our operating expense. So I think, you can impute from our guidance what the operating expenses are and then you have to make some assumption around synergies for the next quarter. So we don't have a good answer on being able to provide guidance for operating expenses out in Q4 and beyond.

是的。我們其實一次只提供一個季度的指引。而且很明顯，隨著我們追求協同效益，營業費用會下降。所以我想你可以從我們的指引推算出營業費用，然後對下一季的協同效益做一些假設。因此我們無法就第 4 季及之後的營業費用提供良好的指引答案。

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

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

So could you talk a bit about VCSEL content in existing clients and the potential Android clients? And also could you share with us about the VCSEL competition landscape in the Android markets?

能否談談現有客戶中的 VCSEL 含量以及潛在 Android 客戶的情況？另外，也能否與我們分享 Android 市場中 VCSEL 的競爭態勢？

The what market?

哪個市場？

Android market.

Android 市場。

In Android.

在 Android。

Yes. Well, it varies depending upon what type of 3D sensing and whether it's world-facing, front-facing or both. So I would say that in the Android environment, it ranges from single-chip content to what I would expect in calendar '19, 2 to 3 potential chips that could drive additional content per device or additional dollar content per device. From a competitive landscaping standpoint. In the Android market, it's a little bit different as we see the cast of people that currently have volume 3D sensing at the Android customers, it's a little bit different than we have with our lead customer. But I mean, they are all capable, I think, eventually and will -- I think, the key to our differentiation is pushing technology and allowing our customers to do something unique that they couldn't necessarily do with last year's technology.

是的。這會因 3D 感測的類型不同而有所差異，以及是後置（world-facing）、前置（front-facing）或兩者皆有。所以我會說，在 Android 環境中，從單晶片含量到我預期在 2019 年曆年可能有 2 到 3 顆晶片，進而帶動每台裝置更多的含量或更高的每台裝置美元含量。就競爭態勢而言，在 Android 市場，我們看到目前在 Android 客戶端有量產 3D 感測的那一群廠商，和我們的主要客戶那邊相比有些不同。但我的意思是，他們最終都具備能力——我認為我們差異化的關鍵在於推進技術，讓客戶能做出一些獨特的事情，而這些事情未必能用去年的技術做到。

Sure. So you mentioned that some of your existing clients might see a content growth this year. So do we expect meaningful change in the content this year? Or counting to next year for your existing client base?

了解。你提到你們的一些現有客戶今年可能會看到含量成長。那我們是否預期今年含量會有顯著變化？還是要等到明年才會在你們現有客戶基礎上看到？

Well, I think based on our design work with our customers, there are many that are working on world-facing time-of-flight high-powered VCSELs that when they announce them in the products, that will increase the content per device. I can't tell when they're going to do it or what models they're going to do or if they're going to do it on a single high-end model, or if they're going to put it on a range of products. We're just focused on making sure that when they do announce a product, it's with our VCSEL and with our solution that gives them something that's unique.

我想根據我們與客戶的設計工作，有很多客戶正在開發用於後置 ToF（飛行時間）且高功率的 VCSEL；當他們在產品中宣布採用時，將會提高每台裝置的含量。我無法告訴你他們何時會做、會用在哪些機型，或是只用在單一高階機型，還是會放到一系列產品上。我們只專注於確保當他們宣布產品時，是採用我們的 VCSEL 與我們的解決方案，讓他們能提供一些獨特的東西。

Our next question comes from the line of Tom O'Malley with Barclays.

下一個問題來自 Barclays 的 Tom O'Malley。

I guess, I'll start with the organic live data service. So it was down 45%, and then it's guided down again. You guys have talked about some strategic decisions with the business. Can you first update that? And then further, could you see some gross margin uplift from the product pairing with Oclaro? And what does the profitability of that segment look like at these levels versus where it could go in the future?

我想先從資料通訊（datacom）的有機業務談起。它下滑了 45%，而且指引顯示還會再下滑。你們談到過對該業務做出一些策略性決策。能否先更新一下？另外，與 Oclaro 的產品搭配是否可能帶來毛利率提升？在目前這些水準下，該部門的獲利能力看起來如何，相較於未來可能達到的水準又如何？

Hey, Tom, can you clarify, are you referencing the datacom business?

嗨，Tom，你能澄清一下，你指的是資料通訊（datacom）業務嗎？

The datacom business.

資料通訊（datacom）業務。

And for clarity, our just reported Q2 was Oclaro plus Lumentum datacom business not just the organic business. But to your question, they're both going down quarter-over-quarter.

為了說清楚，我們剛公布的第 2 季是 Oclaro 加上 Lumentum 的 datacom 業務，不只是有機業務。但就你的問題而言，兩者都是季對季下滑。

Sorry Tom, go ahead.

抱歉 Tom，你繼續。

Go ahead, just following up on the gross margin uplift of that business.

請繼續，我只是追問一下該業務毛利率提升的部分。

Yes, so, yes, these products are low, low gross margin. So certainly any -- either improvement through having a better product and replacing the low-margin products or pruning out low-margin products is going to result in gross margin uplift, overall, for the company. With that said, that's obviously got to be balanced with ensuring that if we were to prune products that we don't leave any overhead -- overhang of overhead, if you will. But I don't think that's going to be a challenge, but that's something, we just have to keep an eye on.

是的，所以，是的，這些產品的毛利率很低、非常低。因此，任何——不論是透過更好的產品來改善並取代低毛利產品，或是修剪/淘汰低毛利產品——都會帶來毛利率提升，並在整體上推升公司的毛利率。話雖如此，這顯然必須與確保（如果我們修剪產品）不會留下任何間接費用的「懸掛」或負擔相平衡。但我不認為那會是挑戰，只是我們需要留意。

Yes, I think just to add to that. As we continue to grow out chip business, that will be a good bump to the gross margin and datacom. And then we're continuing to work on driving lower-cost 100 gig transceivers and 400 gig next generation transceivers to the market. So the combination of bringing in new products and driving higher levels of chip sales should drive gross margin on the datacom business in the right direction.

是的，我想再補充一下。隨著我們持續擴大晶片業務，這將對 datacom 的毛利率帶來不錯的提振。同時我們也持續推動更低成本的 100G 收發器以及 400G 下一代收發器進入市場。因此，引入新產品並提高晶片銷售占比的組合，應能推動 datacom 業務的毛利率朝正確方向發展。

That's helpful. And then just as follow-up, your guide implies, I think, a slightly higher tax rate than expected, I think about 6%. I mean, you kind of walked us through the moving parts there. Can you talk about the expected run rate there for June? And do you still expect that rate to move up slightly into '19?

這很有幫助。再追問一下，你們的指引似乎暗示稅率略高於預期，我想大約是 6%。你們也帶我們走過其中的變動因素。能否談談 6 月的預期常態化水準（run rate）？你們是否仍預期該稅率在 2019 年會小幅上升？

Yes. I think, the rate might be a little lower than -- but that's in the ZIP Code. I would not expect, on a relative basis, that to change going into the fourth quarter.

是的。我想稅率可能會稍微低一些——但大致就在那個區間。相對而言，我不預期進入第 4 季會有變化。

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

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

You'd mentioned briefly with regard to China, I think, that obviously, there's applications across the board. The ACL platform, which, historically, is a pretty important part of the Oclaro franchise. I wonder, if you could talk about kind of trends in that product line, both focused on DCI and metro markets? And then maybe step back to address the overall cloud opportunity, maybe differentiating between data center interconnect, trends that we're seeing basically inside versus outside the data center, both your exposure to those via the ACO platform and how that might evolve heading forward?

你先前在談到中國時曾簡要提到，我想，很明顯各領域都有應用。ACL 平台在歷史上一直是 Oclaro 事業版圖中相當重要的一部分。我想請你談談這條產品線的趨勢，特別聚焦在 DCI 與都會（metro）市場？然後也許再退一步談整體雲端機會，或許可區分資料中心互連（data center interconnect），以及我們看到的資料中心內部與外部的趨勢；你們透過 ACO 平台在這些方面的曝險，以及未來可能如何演進？

Yes, so Tim, I would say the way we think about it is the following that the ACO platform that you reference, certainly has a lot of customers today, either buying mostly at the module level, in some cases at component level. The product roadmap though is to aggressively ramp DCO products across the existing ACO customer base as well as many other customers that have not adopted ACOs. ACOs certainly are a little bit more complex for a customer to adopt in that they have to have a DSP, and integrate the DSP with the ACO. So we see the industry en masse shifting towards DCO over the mid to long-term, and we're very well positioned both with the lower speed 100 gig, 200 gig as well as 400 gig, looking forward over the next few years. In terms of -- I said across the customer base, thinking generally of the telecom NIMs, but as you've highlighted, there's certainly the cloud customer base, who very much look to DCO modules as a great way for them to get their coherent solutions without having to be experts in integrating DSPs and ACO modules or building modules themselves, buying components. And so there's definitely an emerging market here between the cloud guys, primarily for DCI.

是的，所以 Tim，我會說我們的思考方式如下：你提到的 ACO 平台，當然目前已有很多客戶，主要在模組層級採購，在某些情況下也會在元件層級採購。不過產品路線圖是要在既有 ACO 客戶群以及許多尚未採用 ACO 的其他客戶中，積極加速導入並放量 DCO 產品。客戶採用 ACO 的複雜度確實稍高，因為他們必須具備 DSP，並將 DSP 與 ACO 進行整合。因此我們看到產業整體在中長期正轉向 DCO，而我們在較低速的 100G、200G 以及 400G 方面都具備很好的佈局，展望未來幾年亦然。就——我說的是整體客戶基礎而言，一般想到的是電信 NIMs，但如你所指出，也有雲端客戶群，他們非常看重 DCO 模組，因為這讓他們能取得相干（coherent）解決方案，而不必成為整合 DSP 與 ACO 模組的專家，或自行打造模組、以元件方式採購。因此在這裡確實有一個新興市場，主要來自雲端業者，特別用於 DCI。

Great. If I could follow up just to wrap up. We've covered kind of overall demand trends in China on the telecom side and they look, I guess, perhaps surprisingly strong. Wonder if you could make sort of any similar comments about more carrier metro long-haul focused markets outside of China and your North American and European OEM customers, whether you see similar trends relative to some of the growth you're looking at in China or how you would characterize that relative to your overall telecom growth?

很好。如果我可以追問一下作為收尾。我們已經談到中國電信端的整體需求趨勢，看起來我想，或許出乎意料地強勁。想請你對中國以外、較偏向營運商都會與長途（metro long-haul）的市場，以及你們北美與歐洲的 OEM 客戶，是否也能做一些類似的評論：你們是否看到與中國成長相近的趨勢？或你會如何相對於整體電信成長來描述？

Yes, I'd say that we're seeing broad demand growth, North America, Europe and anecdotally throughout Middle East and Africa with respect to the products where we've clear leadership, ROADMs, next-generation transmission components and ACOs and DCOs. So it is a broad range of demand that, I think, is a combination of just pure market growth. But in addition to that, I believe we're gaining significant share with our leadership capability and the things that we talked about earlier. So I think the combination of the two are driving our top line telecom transmission and transport.

是的，我會說我們看到需求成長相當廣泛，北美、歐洲，以及就我們聽到的情況而言，中東與非洲也都有；主要是在我們具備明確領先地位的產品上，包括 ROADM、下一代傳輸元件，以及 ACO 與 DCO。因此這是一個廣泛的需求範圍，我認為一部分來自純粹的市場成長。但除此之外，我相信我們也憑藉領先能力與先前談到的那些因素，正在取得顯著的市佔提升。所以我認為兩者的結合正在推動我們電信傳輸與傳送（transport）業務的營收。

And our next question come from the line of Troy Jensen with Piper.

下一個問題來自 Piper 的 Troy Jensen。

Just a follow-up on that last question, Chris. Could you give us a timeline for when you expect to have the DCOs generally available?

就剛才最後一個問題再追問一下，Chris。你能否給我們一個時間表，說明你們預期 DCO 何時會普遍供貨（generally available）？

We expect to be ramping those this summer.

我們預期今年夏天會開始放量（ramp）。

Is that shipping samples or generally available?

那是出貨樣品，還是普遍供貨？

I would say generally available.

我會說是普遍供貨。

All right, perfect, and just a follow-up on that. Do you expect to use multiple DSP partners? Or would you be standardizing on just one?

好，完美，再追問一下。你們預期會使用多家 DSP 夥伴嗎？還是會標準化只用一家？

We have multiple DSP partners. Certainly, we've got a lead partner that's a very public relationship.

我們有多家 DSP 夥伴。當然，我們有一家主要夥伴，這是一段非常公開的合作關係。

All right. Then my last question to you, it's been a while since we got an update from Oclaro in their 400G lasers. And the same question line, when do you expect the lasers to be generally available?

好。那我最後一個問題：我們有一段時間沒有收到 Oclaro 在 400G 雷射方面的更新了。同樣的問題脈絡，你們預期這些雷射何時會普遍供貨？

I don't think we want to talk about -- that's a competitive product for sure, but it's something that we expect to be a leader in, in that.

我想我們不想談——那確實是具競爭性的產品，但我們預期在那方面會成為領導者。

And there are no further questions at this time. I'll turn the call back over to Alan Lowe.

目前沒有進一步的問題。我把電話交回給 Alan Lowe。

Thank you, Matthew. I want to thank our customers for their business and partnership. I also want to thank our employees for their hard work and putting us into an excellent position for long-term growth. We regularly discuss our business in 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 few months. Thank you.

謝謝你，Matthew。我要感謝我們的客戶，感謝你們的業務往來與合作夥伴關係。我也要感謝我們的員工，感謝你們的辛勤工作，讓我們處於一個極佳的位置以實現長期成長。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，我們期待在幾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。