Lumentum Holdings Inc (LITE) 2024 Q1 法說會逐字稿

Good day, everyone, and welcome to the Lumentum Holdings First Quarter Fiscal Year 2024 Earnings Call. (Operator Instructions) Please also note today's event is being recorded for replay purposes. (Operator Instructions).

大家好，歡迎參加 Lumentum Holdings 2024 財年第一季財報電話會議。 （操作員指示）另請注意，今天的活動將被錄製以供重播。 （操作員指令）。

I would now like to turn the conference call over to Kathy Ta, Vice President of Investor Relations. Ms. Ta, please go ahead.

現在，我想將電話會議交給投資人關係副總裁 Kathy Ta。 Ta小姐，請說。

Thank you, and welcome to Lumentum's Fiscal First Quarter 2024 Earnings Call. This is Kathy Ta, Lumentum's Vice President of Investor Relations. Joining me today are Alan Lowe, President and Chief Executive Officer; Wajid Ali, Chief Financial Officer; and Chris Coldren, Senior Vice President and Chief Strategy and Corporate Development Officer.

謝謝，歡迎參加 Lumentum 2024 財年第一季財報電話會議。我是 Lumentum 投資者關係副總裁 Kathy Ta。今天與我一起出席的還有總裁兼執行長 Alan Lowe；瓦吉德·阿里，財務長；以及高級副總裁兼首席策略和企業發展長 Chris Coldren。

Today's call will include forward-looking statements, including statements regarding our expectations and beliefs regarding recent acquisitions, including Cloud Light and NeoPhotonics, financial and operating results, macroeconomic trends, trends and expectations for our products and technology, our end markets, market opportunities and customers and our expected financial performance, including our guidance as well as statements regarding our future revenues, financial model and margin targets.

今天的電話會議將包括前瞻性陳述，包括有關我們對最近收購（包括 Cloud Light 和 NeoPhotonics）的期望和信念的陳述、財務和經營業績、宏觀經濟趨勢、我們的產品和技術的趨勢和期望、我們的終端市場、市場機會和客戶以及我們預期的財務業績，包括我們的指導以及有關我們未來收入、財務模型和利潤目標的陳述。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations, particularly the risk factors described in our SEC filings. We encourage you to review our most recent filings with the SEC, particularly the risk factors described in the 10-K for the fiscal year ended July 1, 2023, and our 10-Q that will be filed soon.

這些聲明受到風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異，特別是我們向美國證券交易委員會提交的文件中所述的風險因素。我們鼓勵您查看我們最近向美國證券交易委員會提交的文件，特別是截至 2023 年 7 月 1 日的財政年度的 10-K 文件中描述的風險因素，以及我們即將提交的 10-Q 文件中描述的風險因素。

The forward-looking statements provided during this call are based on Lumentum's reasonable beliefs and expectations as of today. Lumentum undertakes no obligation to update these statements, except as required by applicable law. Please also note that unless otherwise stated, all financial results and projections discussed in this call are non-GAAP. Non-GAAP financials are not to be considered as a substitute for, or superior to financials prepared in accordance with GAAP.

本次電話會議中提供的前瞻性陳述是基於 Lumentum 截至今天的合理信念和預期。 Lumentum 不承擔更新這些聲明的義務，除非適用法律要求。另請注意，除非另有說明，本次電話會議中討論的所有財務結果和預測均為非 GAAP。非 GAAP 財務報表不應被視為替代或優於依 GAAP 編製的財務報表。

Lumentum's press release with the fiscal first quarter results and accompanying supplemental slides are available on our website at www.lumentum.com under the Investors section.

Lumentum 的新聞稿以及第一財季業績和隨附的補充幻燈片可在我們的網站 www.lumentum.com 的「投資者」部分找到。

With that, I'll turn the call over to Alan.

說完這些，我會把電話轉給艾倫。

Thank you, Kathy, and good morning, everyone. We're thrilled to welcome the Cloud Light team to Lumentum. The addition of Cloud Light's products to our portfolio positions Lumentum as a leader in providing photonics to cloud operators at a time when artificial intelligence is rapidly accelerating growth in the data center market. We believe Lumentum's served opportunity within data centers has expanded more than fivefold as a result of the Cloud Light acquisition.

謝謝你，凱西，大家早安。我們很高興歡迎 Cloud Light 團隊加入 Lumentum。在人工智慧迅速加速資料中心市場成長的時代，將 Cloud Light 的產品添加到我們的產品組合中，使 Lumentum 成為向雲端營運商提供光子學的領導者。我們相信，由於收購 Cloud Light，Lumentum 在資料中心內的服務機會擴大了五倍以上。

For years, Cloud Light has been supplying differentiated high-speed products to leading hyperscale customers, both custom products to address unique customer needs as well as standard products to address a broad range of hyperscale customer requirements. In the last 12 months, over 90% of Cloud Light's revenue was derived from 400G and higher-speed products. In the most recent quarter, over half of Cloud Light's optical transceiver revenue was derived from 800G transceivers.

多年來，Cloud Light 一直為領先的超大規模客戶提供差異化的高速產品，包括滿足獨特客戶需求的客製化產品以及滿足廣泛超大規模客戶要求的標準產品。在過去的12個月中，Cloud Light 90%以上的收入來自400G及更高速度的產品。最近一個季度，Cloud Light 超過一半的光收發器收入來自 800G 收發器。

In calendar 2024, we anticipate strong growth in Cloud and Networking revenue driven by accelerating AI compute requirements and a resumption of shipping more in line with end market demand. Also in calendar 2024, we expect cloud applications to drive over 30% of Lumentum's Cloud and Networking revenue. Our cloud customers are responding very positively to this transaction. This combination results in a broader portfolio of differentiated products and technology.

在 2024 年，我們預計雲端和網路收入將強勁成長，這得益於加速的 AI 運算需求和更符合終端市場需求的出貨恢復。此外，到 2024 年，我們預計雲端應用程式將推動 Lumentum 雲端和網路收入的 30% 以上。我們的雲端客戶對此交易的反應非常正面。這種結合產生了更廣泛的差異化產品和技術組合。

It also enhances the security of supply for our customers, given our broader combined global manufacturing footprint and high levels of vertical integration. Lumentum is well equipped to address future cloud technology road maps as AI models drive an exponential increase in compute and networking requirements.

鑑於我們更廣泛的全球製造足跡和高度的垂直整合，它也增強了我們客戶的供應安全性。隨著人工智慧模型推動運算和網路需求呈指數級增長，Lumentum 已做好充分準備應對未來雲端技術路線圖。

I would also like to highlight that starting with this fiscal year, we're updating our financial segment reporting to better reflect the rapidly changing market opportunities ahead. Our financial reporting is now focused on 2 large and growing end market segments: one, Cloud and Networking and two, Industrial Tech. Within Cloud and Networking, the cloudification of the network is blurring the lines between our historical served markets of telecom and datacom. Cloud data center and traditional telecom operators are increasingly purchasing the same types of data transmission products.

我還想強調的是，從本財年開始，我們將更新我們的財務分部報告，以更好地反映未來快速變化的市場機會。我們的財務報告目前集中在兩個龐大且不斷成長的終端市場領域：一是雲端和網絡，二是工業技術。在雲端和網路領域，網路的雲端化正在模糊我們過去服務的電信和數據通訊市場之間的界限。雲端資料中心和傳統電信業者越來越多地購買同類型的資料傳輸產品。

We anticipate the emergence of new applications for optical switching technology not only to serve the growing complexity of long-haul and metro networks but also to support the high optical link density required for AI training models in the data center. Our customer mix is changing as well. The addition of Cloud Light brings much more direct sales to cloud operators and infrastructure providers.

我們預計光交換技術的新應用將會出現，不僅可以滿足日益複雜的長途和城域網路的需求，還可以支援資料中心人工智慧訓練模型所需的高光鏈路密度。我們的客戶結構也在改變。 Cloud Light 的加入為雲端營運商和基礎設施供應商帶來了更多的直接銷售。

We're also increasingly serving Cloud and Networking operators directly for their data center interconnect and edge networking applications. To better align our reporting with these market trends, the telecom product lines and the datacom product lines are now included in the Cloud and Networking segment.

我們也越來越多地直接為雲端和網路營運商提供資料中心互連和邊緣網路應用服務。為了使我們的報告更符合這些市場趨勢，電信產品線和數據通訊產品線現在包含在雲端和網路部分。

Turning to the Industrial Tech segment. Our portfolio of imaging, sensing and laser products aligns with Industry 4.0 and 5.0 trends. Industrial sensing applications require high accuracy in determining distance, speed and displacement and are increasingly turning to laser-based approaches. Leading edge semiconductor, solar cell and electronic component manufacturing require the beam precision and short pulse duration of ultrafast lasers to produce precise cuts and features to better reflect the growing importance of precision photonics across this broad application space. The industrial and consumer and commercial lasers product lines are now included within the Industrial Tech segment.

轉向工業技術領域。我們的成像、感測和雷射產品組合符合工業 4.0 和 5.0 趨勢。工業感測應用需要高精度地確定距離、速度和位移，並且越來越多地採用基於雷射的方法。尖端半導體、太陽能電池和電子元件製造需要超快雷射的光束精度和短脈衝持續時間來產生精確的切口和特徵，以更好地反映精密光子學在這一廣泛應用領域日益增長的重要性。工業和消費及商業雷射產品線現已納入工業技術部門。

Now I will summarize our fiscal first quarter results. As we reported last week, first quarter revenue and EPS were above the midpoints of our guidance ranges. Through cost controls and efficient operations, we're managing the factors that are in our control. While we continue to see very strong growth in the demand for our data center chips as well as our newly acquired intra-data center transceivers, this strength is being offset by the telecom and industrial inventory drawdown activities. Due to this inventory correction, we believe we continue to ship below end market demand.

現在我將總結我們第一財季的業績。正如我們上週報導的那樣，第一季的收入和每股收益高於我們預期範圍的中點。透過成本控制和高效運營，我們正在管理我們能夠控制的因素。雖然我們繼續看到對我們的資料中心晶片以及我們新收購的資料中心內收發器的需求非常強勁的成長，但這種優勢被電信和工業庫存減少活動所抵消。由於此次庫存調整，我們認為我們的出貨量將持續低於終端市場需求。

As we navigate this transition period, we're delivering as planned on our product road maps and synergy attainment with respect to our NeoPhotonic acquisition. Of course, we're also excited about the new opportunities that Cloud Light brings starting in the current quarter as we leverage their leading transceiver technology to deliver the fastest speed products to cloud customers.

在我們度過這一過渡期的同時，我們正在按計劃實施我們的產品路線圖並實現與 NeoPhotonic 收購相關的協同效應。當然，我們也對 Cloud Light 從本季開始帶來的新機會感到興奮，因為我們利用其領先的收發器技術為雲端客戶提供最快的速度產品。

Now let me provide more detail on our segment level results in Q1. Cloud and Networking revenue was down 20% sequentially and down 36% year-on-year with broad-based softness across most of our networking product lines, partially offset by sequential growth in intra-data center lasers and tunable access module. This is as we had expected, given the inventory correction underway at our networking customers.

現在，讓我提供有關第一季度細分級別結果的更多詳細資訊。雲端和網路收入環比下降 20%，年減 36%，大部分網路產品線普遍疲軟，但資料中心內雷射和可調接入模組的環比成長部分抵消了這一影響。考慮到我們的網路客戶正在進行庫存調整，這正如我們預期的那樣。

Robust cloud data center demand is currently the strongest growth driver for our Cloud and Networking business. As data centers are designed to support the high bandwidth requirements of AI workloads, 800 gig transceivers can provide that bandwidth, while also reducing latency. For our transceiver customers, their new 800 gig transceivers utilize 8 different wavelengths at 100 gig per lane triggering orders for our chip level photonics and driving growth for our EML product line.

強勁的雲端資料中心需求目前是我們雲端和網路業務最強勁的成長動力。由於資料中心旨在支援 AI 工作負載的高頻寬要求，因此 800 千兆收發器可以提供此頻寬，同時還能減少延遲。對於我們的收發器客戶，他們的新型 800 千兆收發器採用 8 種不同的波長，每通道 100 千兆，從而引發了我們晶片級光子學的訂單，並推動了我們的 EML 產品線的成長。

We're also seeing an increase in deployments of 800G transceivers that are supplied by our Cloud Light business, and we're working with our new team to enable them to ramp even more rapidly. Over time, we also expect to supply custom-designed high-power CW laser arrays for leading AI hardware architectures to provide the high-bandwidth, low-latency optical interconnects essential for training and inference applications.

我們還看到由我們的 Cloud Light 業務提供的 800G 收發器的部署有所增加，我們正在與新團隊合作，以使它們能夠更快地發展。隨著時間的推移，我們還希望為領先的人工智慧硬體架構提供客製化設計的高功率連續波雷射陣列，以提供訓練和推理應用所需的高頻寬、低延遲光互連。

In calendar '24, our 200 gig per lane EMLs will enable the next generation of transceivers with capacity of up to 1.6 terabits. We're shipping qualification samples of our 200-gig EMLs now and expect to ramp production in calendar '24 with customer qualifications of 800-gig and 1.6 terabit transceiver designs well underway. We expect that 200 gig per lane optics will be the workhorse of hyperscale data centers for years to come once these qualifications are completed.

在 2024 年，我們的每通道 200 千兆位元 EML 將支援容量高達 1.6 太比特的下一代收發器。我們現在正在運送 200 千兆 EML 的認證樣品，並預計在 24 年內實現量產，同時 800 千兆和 1.6 太比特收發器設計的客戶認證工作也在順利進行中。我們預計，一旦這些資格認證完成，每通道 200 千兆的光元件將成為未來幾年超大規模資料中心的主力。

Through Cloud light, Lumentum is now a leader in high-speed active optical cables or AOCs as well as VCSEL-based transceivers to cloud customers to fulfill their short reach connectivity requirements for new AI and machine learning cluster architectures. In addition, we've been developing high-speed 100 gigabit per second VCSELs and VCSEL arrays for the short-reach optical links, and we expect to ramp these shipments meaningfully in calendar '24.

透過 Cloud light，Lumentum 現已成為高速主動光纜或 AOC 以及基於 VCSEL 的收發器的領導者，為雲端客戶提供滿足其對新 AI 和機器學習叢集架構的短距離連接需求的服務。此外，我們一直在為短距離光鏈路開發高速 100 千兆位元每秒 VCSEL 和 VCSEL 陣列，我們預計這些產品的出貨量將在 24 年大幅增加。

Moving on to our high-speed transmission product developments. We're receiving positive customer feedback on our next generation of 130 gigabaud and 200 gigabaud data rate coherent technologies. These high-speed products will be available in both discrete and integrated form factors to enable enhanced performance in metro and long-haul applications.

繼續我們的高速傳輸產品開發。我們收到了客戶對下一代 130 千兆波特和 200 千兆波特資料速率相干技術的正面回饋。這些高速產品將採用分立和整合兩種形式，以增強城域和長途應用的性能。

In addition, at the ECOC Conference last month, we received positive customer feedback on our coherent 800-gig ZR product. We believe we're the first to market with this capability, which will provide high-speed connectivity with extended reach for data center interconnect within metropolitan areas.

此外，在上個月的 ECOC 會議上，我們收到了客戶對我們相干 800-gig ZR 產品的正面回饋。我們相信我們是第一個將此功能推向市場的公司，它將為大都市地區的資料中心互連提供具有擴展覆蓋範圍的高速連接。

Turning to Industrial Tech. Fiscal Q1 was up 4% sequentially from Q4, driven by the expected uptick in our 3D sensing business with a new smartphone product ramp, partially offset by softness in fiber lasers as our leading fiber laser customer works to bring down inventory. Industrial Tech is down 40% year-over-year as expected, primarily due to more intense competition for market share on a certain 3D sensing socket, end market demand and pricing as discussed previously.

轉向工業技術。第一財季環比第四季度增長 4%，這得益於我們 3D 感測業務隨著新智慧型手機產品的推出而出現的預期增長，但由於我們領先的光纖雷射器客戶努力降低庫存，光纖雷射的疲軟在一定程度上抵消了這一增長。工業技術較去年同期下降 40%（符合預期），主要原因是某些 3D 感測插座的市場份額競爭更加激烈，終端市場需求和定價也更加激烈（如前所述）。

Based on our latest customer forecast, we continue to expect industrial lasers demand to be soft into calendar 2024 due to customer inventory digestion and macro factors impacting end markets. However, we expect the rapid growth in new applications for ultrafast lasers to partially offset these near-term headwinds, given growth in new solar cell manufacturing applications.

根據我們最新的客戶預測，由於客戶庫存消化和影響終端市場的宏觀因素，我們繼續預計到 2024 年工業雷射器需求將疲軟。然而，考慮到新太陽能電池製造應用的成長，我們預計超快雷射新應用的快速成長將部分抵消這些近期的阻力。

To summarize, our market outlook is currently a tale of 2 dynamics. On the other hand, outside of the data center customers, we're facing continued headwinds from networking and industrial customer inventory digestion. In all of our end markets, we're committed to our long-term R&D road maps and we're positioning the company for the robust growth of photonics opportunities that we see ahead.

總而言之，我們的市場前景目前由兩種動態組成。另一方面，除了資料中心客戶之外，我們還面臨網路和工業客戶庫存消化的持續阻力。在我們所有的終端市場中，我們都致力於我們的長期研發路線圖，並為公司未來看到的光子學機會的強勁成長做好準備。

Before turning it over to Wajid, I would like to again welcome our new employees from Cloud Light and thank all of our employees and our customers around the world for their focus and dedication as they continue to collaborate and partner with Lumentum.

在將權力移交給 Wajid 之前，我想再次歡迎來自 Cloud Light 的新員工，並感謝我們所有的員工和世界各地的客戶在繼續與 Lumentum 合作和夥伴關係時所表現出的專注和奉獻精神。

With that, Wajid?

就這樣，瓦吉德？

Thank you, Alan. Net revenue for the first quarter was $317.6 million, which was down 14% sequentially and down 37% year-on-year. During the quarter, we had 3 greater than 10% customers, 2 of which are in networking and 1 10% customer in the Industrial Tech market.

謝謝你，艾倫。第一季淨營收為3.176億美元，季減14%，年減37%。本季度，我們有 3 個超過 10% 的客戶，其中 2 個來自網路領域，1 個 10% 的客戶來自工業技術市場。

GAAP gross margin for the first quarter was 24.1%. GAAP operating loss was 25.4%, and GAAP diluted net loss per share was $1.02. First quarter non-GAAP gross margin was 34.9%, which was down sequentially and down year-on-year, primarily driven by product mix, factory underutilization and lower revenue.

第一季 GAAP 毛利率為 24.1%。 GAAP 營業虧損為 25.4%，GAAP 稀釋每股淨虧損為 1.02 美元。第一季非公認會計準則毛利率為 34.9%，季減，年減，主要原因是產品組合、工廠利用率不足和收入下降。

First quarter non-GAAP operating margin was 3.3%, which decreased sequentially and year-on-year. First quarter non-GAAP operating income was $10.6 million, and adjusted EBITDA was $34.6 million. First quarter non-GAAP operating expenses totaled $100.1 million or 31.5% of revenue, down $2.3 million from Q4 and down $6.6 million from the year ago quarter due to tight expense controls.

第一季非公認會計準則營業利潤率為3.3%，環比和年比均有所下降。第一季非公認會計準則營業收入為 1,060 萬美元，調整後 EBITDA 為 3,460 萬美元。第一季非公認會計準則營運費用總計 1.001 億美元，佔營收的 31.5%，由於嚴格的費用控制，比第四季減少 230 萬美元，比去年同期減少 660 萬美元。

Q1 non-GAAP SG&A expense was $39.1 million. Non-GAAP R&D expense was $61 million. Interest and other income was $16.8 million on a non-GAAP basis due to higher interest rates on our cash and investments. First quarter non-GAAP net income was $23.4 million, and non-GAAP diluted net income per share was $0.35. Our fully diluted share count for the first quarter was 67 million shares on a non-GAAP basis.

第一季非公認會計準則銷售、一般及行政費用為 3,910 萬美元。非公認會計準則研發費用為 6,100 萬美元。由於我們的現金和投資利率較高，以非公認會計準則計算，利息和其他收入為 1,680 萬美元。第一季非公認會計準則淨收入為 2,340 萬美元，非公認會計準則每股攤薄淨收入為 0.35 美元。根據非公認會計準則，我們第一季的完全稀釋股數為 6,700 萬股。

Turning to the balance sheet. Our cash position decreased during the quarter due to a few key items. We used $30 million in cash to purchase our wafer fab and campus in the U.K. This purchase reflects our confidence in the longevity of indium phosphide technology to address the ever-growing need for higher and higher performance telecom transmission components. In order to capture our COGS synergies from the NeoPhotonics acquisition, we're prebuilding nearly $30 million of inventory to help facilitate the factory consolidation happening over the next few months.

轉向資產負債表。由於一些關鍵因素，本季我們的現金狀況有所下降。我們用3000萬美元現金購買了位於英國的晶圓廠和園區。此次收購反映了我們對磷化銦技術壽命的信心，相信該技術能夠滿足對越來越高效能的電信傳輸組件不斷增長的需求。為了從 NeoPhotonics 收購中獲得 COGS 協同效應，我們預先建立了近 3,000 萬美元的庫存，以幫助促進未來幾個月發生的工廠整合。

And we had an annual Japan tax payment of approximately $17 million as well as expenses related to the Cloud Light acquisition. As a result, cash and short-term investments decreased $69 million sequentially to $1.94 billion. To streamline operations and achieve synergies, we will be consolidating NeoPhotonics back-end manufacturing facilities. And therefore, we expect an under absorption of capacity relating to these moves during Q2 and Q3.

我們每年向日本繳納約 1,700 萬美元的稅款，以及與收購 Cloud Light 相關的費用。因此，現金和短期投資季減 6,900 萬美元至 19.4 億美元。為了簡化營運並實現協同效應，我們將整合 NeoPhotonics 後端製造設施。因此，我們預期第二季和第三季與這些措施相關的產能吸收不足。

By the end of Q4, as we ramp up production of NeoPhotonics products within Lumentum's manufacturing footprint, we expect to ship buffer inventory, enabling these manufacturing costs to align with the rest of our production. In addition, as we continue to focus on cash generation, we expect our internal inventories to decline throughout the balance of the fiscal year.

到第四季末，隨著我們在 Lumentum 製造範圍內增加 NeoPhotonics 產品產量，我們預計將運送緩衝庫存，使這些製造成本與我們其餘的生產保持一致。此外，由於我們繼續關注現金創造，我們預計整個財政年度內我們的內部庫存將下降。

Turning to segment details. For the benefit of our investors, we have expanded our earnings press release to include tables of historical financial data that are reformatted into our new segment categories. First quarter Cloud and Networking segment revenue at $229.7 million decreased 19.8% sequentially and was down 36.2% year-on-year. Cloud and Networking segment non-GAAP reporting profit at 10.4% decreased sequentially and year-on-year.

轉向細分細節。為了投資者的利益，我們擴大了收益新聞稿的範圍，其中包括重新格式化為新細分類別的歷史財務資料表。第一季雲端和網路部門營收為 2.297 億美元，季減 19.8%，年減 36.2%。雲端和網路部門非公認會計準則報告利潤為 10.4%，環比和年比均下降。

Our first quarter Industrial Tech segment revenue at $87.9 million was up 4.3% sequentially and down 40.1% year-on-year. First quarter Industrial Tech non-GAAP reporting profit of 17.4% was up sequentially, but down year-on-year.

我們第一季工業技術部門的營收為 8,790 萬美元，季增 4.3%，年減 40.1%。第一季工業技術非公認會計準則報告利潤為 17.4%，季增，但年減。

Now let me move to our guidance for the second quarter of fiscal '24, which is on a non-GAAP basis and is based on our assumptions as of today. We expect net revenue for the second quarter of fiscal '24 to be in the range of $350 million to $380 million. Within this Q2 revenue forecast, we anticipate Industrial Tech to be down sequentially with Cloud and Networking to be up sequentially with the addition of a partial quarter of Cloud Light revenue.

現在，讓我談談我們對 24 財年第二季的指導，該指導是基於非 GAAP 基礎並基於我們今天的假設。我們預計 24 財年第二季的淨收入將在 3.5 億至 3.8 億美元之間。在第二季營收預測中，我們預計工業技術營收將環比下降，而雲端運算和網路收入將環比上升，同時也增加部分季度的 Cloud Light 營收。

Based on this, we project second quarter non-GAAP operating margin to be in the range of 2% to 4% and diluted net income per share to be in the range of $0.25 to $0.35. Our non-GAAP EPS guidance for the second quarter is based on a non-GAAP annual effective tax rate of 14.5%. These projections also assume an approximate share count of 67.4 million shares.

基於此，我們預測第二季非公認會計準則營業利潤率將在 2% 至 4% 之間，每股攤薄淨收益將在 0.25 美元至 0.35 美元之間。我們對第二季的非公認會計準則每股盈餘預測是基於 14.5% 的非公認會計準則年度有效稅率。 這些預測也假設股票數量約為 6740 萬股。

In terms of expectations beyond Q2, as Alan mentioned, we do expect a return to growth in Cloud and Networking shipments in calendar '24 compared to calendar '23 as customer inventory levels are reduced and our shipment rate is more in sync with end market demand.

就第二季之後的預期而言，正如艾倫所提到的，我們確實預計 24 年雲端和網路出貨量將比 23 年恢復成長，因為客戶庫存水準降低，而且我們的出貨率與終端市場需求更加同步。

With that, I'll turn the call back to Kathy to start the Q&A session. Kathy?

說完這些，我將把電話轉回給凱西，開始問答環節。凱西？

Thank you, Wajid. Before we start the Q&A session, I would like to ask everyone to keep to one question and one follow-up. This should help us get to as many participants as possible before the end of our allotted time. Now let's begin the Q&A session.

謝謝你，瓦吉德。在我們開始問答環節之前，我想請大家只問一個問題和一個後續問題。這應該可以幫助我們在規定時間結束之前吸引盡可能多的參與者。現在我們開始問答環節。

(Operator Instructions) We have our first question coming from the line of Simon Leopold from Raymond James.

（操作員指示）我們的第一個問題來自雷蒙德詹姆斯的西蒙利奧波德。

I'll start off with a very easy one. Just want to get an understanding of what your assumption is for the contribution from Cloud Light into the -- in the guidance for the December quarter? And because that's so easy. I'll give you my second question now. I'm wondering if you could maybe unpack a bit what you see going on in the ZR market now in that -- I know we've had a period of inventory absorption and during the ECOC Trade Show, it sounded like there was maybe some visibility to that market improving. If you could maybe unpack what you're seeing in that segment, both from a laser perspective as well as your own ZR devices?

我將從一個非常簡單的問題開始。只是想了解您對 Cloud Light 對 12 月季度指引的貢獻有何假設？因為這太簡單了。我現在要問您第二個問題。我想知道您是否可以稍微解釋一下您現在看到的 ZR 市場的情況——我知道我們經歷了一段時間的庫存吸收，在 ECOC 貿易展期間，聽起來好像市場有所改善。您是否可以從雷射角度以及您自己的 ZR 設備的角度來解釋您在該部分看到的內容？

Thanks, Simon. The Cloud Light revenue is the revenue that they're going to shift from -- when we announced at closing, which was yesterday. So about 7.5 weeks of revenue. And we talked about trailing over $200 million, so you can extrapolate what you think then the 2 months will be. And we're not going to actually break that out in any further detail.

謝謝，西蒙。 Cloud Light 收入是他們將要轉移的收入——當我們在昨天結束時宣佈。因此大約有 7.5 週的收入。我們談到了超過 2 億美元的收入，因此您可以推斷接下來 2 個月的收入將會是多少。我們實際上不會進一步詳細闡述這一點。

As far as the ZR market visibility is concerned, I think with all of what's going on inside the data centers, with AI and machine learning, we've seen a pickup in ZR demand, in fact, probably earlier than we would have expected otherwise. And so I'd say that, that has some healthy tailwind to it for data center interconnect, and we've seen some of that come through some of our hyperscale customers in new demand for the ZR module. Chris, do you have anything else to add on either of those?

就 ZR 市場知名度而言，我認為隨著資料中心內部發生的一切，以及人工智慧和機器學習的發展，我們已經看到 ZR 需求的回升，事實上，可能比我們預期的要早。因此我想說，這對資料中心互連來說有一些健康的順風，而且我們已經看到一些超大規模客戶對 ZR 模組的新需求。克里斯，你還有什麼要補充的嗎？

No, I think that looks great.

不，我認為那看起來很棒。

Your next question comes from the line of Samik Chatterjee from JPMorgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

This is Joe Cardoso on for Samik Chatterjee. Yes. First question from me. Can you just give us some granularity relative to the underlying trends you're seeing in telecom? I think one of your peers in the space suggested it's seeing a bottom in the September quarter itself and expects it to begin to recover in subsequent quarters. And while another suggested that it's more of a mid-2024 phenomenon. Just curious where you are landing on that spectrum and what's driving your confidence there? And then I have a follow-up.

這是喬‧卡多索 (Joe Cardoso)，取代薩米克‧查特吉 (Samik Chatterjee)。是的。我的第一個問題。您能否向我們詳細介紹您在電信領域看到的潛在趨勢？我認為，該領域的一位同行曾表示，該行業在 9 月季度就已經觸底，並預計在接下來的幾季將開始復甦。而另一人則認為這更像是 2024 年中期的現象。我只是好奇你處於這個範圍的哪個位置以及是什麼推動了你的信心？然後我有一個後續問題。

Sure. I'd say we're kind of in between -- in that we still are undershipping end market demand. And I'd say that we've seen some end market demand softening, frankly. And so that's why we continue to see muted demand for our telecom products. That said, I do think that we'll see inventories being reduced in this time period as well as December. But I'd say there's probably still some inventory consumption going on even into early parts of calendar '24.

當然。我想說我們處於中間狀態——我們的出貨量仍然無法滿足終端市場的需求。坦白說，我們已經看到一些終端市場需求正在減弱。這就是為什麼我們的電信產品需求持續低迷。話雖如此，我確實認為我們會看到這段時間和 12 月的庫存減少。但我想說，即使在 2024 年初期，可能仍會有一些庫存消耗。

Got it. I appreciate the color, Alan. And then just relative to the non-Cloud Light datacom business, you had been talking about ramping capacity there, including some rehiring of headcount. I believe you were moving to a larger wafer size, et cetera. So a bunch of moving pieces. I guess, can you just give us an update on how that is tracking? And then just whether with Cloud Light on the books now, does that help you accelerate some of these initiatives relative to what you were doing in terms of ramping capacity for the legacy piece of the datacom business?

知道了。我很欣賞這個顏色，艾倫。然後，僅相對於非 Cloud Light 數據通訊業務，您一直在談論擴大該業務的產能，包括重新僱用一些員工。我相信您正在轉向更大的晶圓尺寸等等。所以有一堆移動的碎片。我想，您能否向我們介紹一下進展？那麼，現在 Cloud Light 已經存在，這是否有助於你們加速其中一些計劃，相對於你們在提升數據通訊業務傳統部分的容量方面所做的計劃？

Sure. The datacom EML market is very robust. And we're on allocation again, unfortunately, but our capacity is coming online as we had projected and as we had discussed on prior calls. But the demand, again, is even more robust, given that the hyperscalers really want to go to 800 gig. And if you go with an EML solution, most of those solutions have 8 chips as opposed to 4 chips to get to 400 gig.

當然。數據通訊 EML 市場非常活躍。不幸的是，我們再次處於分配狀態，但我們的產能正在上線，正如我們預測的那樣，也正如我們在先前的電話會議上所討論的那樣。但考慮到超大規模企業確實希望達到 800G，那麼需求將會更加強勁。如果你採用 EML 解決方案，大多數解決方案都有 8 個晶片，而不是 4 個晶片，以達到 400G。

So a doubling of the chips per transceiver means more and more datacom chips. So we've seen extreme growth in that business. And we're still on track to go to increased wafer size in calendar 2024. So all that work is going on in the fab, while at the same time, we're growing our capacity from the capital additions we made earlier this year that are coming online as well as, as you said, bringing back employees and hiring to be able to meet the demands, although we're still on allocation today on EMLs because they did come back much faster than we had actually expected.

因此，每個收發器的晶片數量增加一倍意味著數據通訊晶片的數量越來越多。因此，我們看到該業務的極端成長。我們仍有望在 2024 年增加晶圓尺寸。因此，所有這些工作都在晶圓廠進行，與此同時，我們正在透過今年早些時候新增的資本來提高產能，正如您所說，我們還在召回員工併招聘員工以滿足需求，儘管我們今天仍在分配 EML，因為它們的恢復速度確實比我們預期的要快得多。

So our backlog is strong through the balance of the fiscal year and we expect that to continue to grow into fiscal '25, especially as we bring on 200 gig per lane EMLs and I think we're going to be in a very strong leadership position there as well. And Cloud Light's designs are -- today are both multimode or VCSEL based. And so we're expecting to use our VCSEL designs to do product in-feeds and drive costs down and margins up as well as silicon photonics-based. And so we're working with Cloud Light's team today on how do we get our CW laser more prevalent in their designs as we move forward. So it doesn't impact our EML capacity per se, but it does give us opportunities for margin improvement over time.

因此，在整個財政年度，我們的積壓訂單量都很強勁，我們預計這一數字將繼續增長到 25 財年，特別是當我們推出每通道 200 千兆的 EML 時，我認為我們也會在那裡處於非常強大的領導地位。而 Cloud Light 的設計目前都是以多模或 VCSEL 為基礎的。因此，我們希望使用我們的 VCSEL 設計來進行產品進料，並降低成本並提高利潤率，就像基於矽光子學一樣。因此，我們今天正在與 Cloud Light 的團隊合作，研究如何讓我們的 CW 雷射在他們的設計中更加普及。因此，它本身並不影響我們的 EML 容量，但確實為我們提供了隨著時間的推移提高利潤率的機會。

Next question comes from the line of Meta Marshall from Morgan Stanley.

下一個問題來自摩根士丹利的 Meta Marshall。

Maybe first question, just on whether you have kind of ironed out more of what CapEx investment you think Cloud Light will take during the year? And then maybe as a second question, kind of building off of Simon's question. You mentioned kind of the 800 ZR getting positive reception at ECOC. Just when would you expect that to kind of ramp into production?

也許第一個問題是，您是否已經確定了 Cloud Light 今年將需要多少資本支出投資？然後也許作為第二個問題，有點像西蒙的問題。您提到 800 ZR 在 ECOC 上獲得了積極的反響。預計什麼時候可以投入生產？

So as you can imagine, the Cloud Light ramp has been very steep and one of the things that we work with them on is to make sure that they continue to invest pre-acquisition and they had. So they've been continuing to grow their capacity.

因此，你可以想像，Cloud Light 的發展非常迅速，我們與他們合作的其中一件事就是確保他們在收購前繼續投資。因此他們一直在不斷提高自己的產能。

As far as future CapEx requirements, I'd say it's a little early in that -- we have been getting very positive feedback from hyperscalers customers, and we expect that the acceleration of growth will be even stronger than expected. So I think it's a little bit early to really determine are we going to further accelerate or stay on the path that they were on. I would say we're probably going to have to accelerate CapEx as we've gotten feedback again from not only existing customers, but new customers that they don't have much footprint in, as they view this really as an extreme positive of a diversification of U.S. headquartered company and manufacturing footprint that is more global than current existing Cloud Light. So I think we'll have to wait on that and give you an update on our CapEx plans for Cloud Light on the next call or some future meeting.

就未來的資本支出需求而言，我認為現在還為時過早——我們已經從超大規模客戶那裡得到了非常積極的反饋，我們預計成長加速將比預期的更加強勁。因此我認為現在判斷我們是否要進一步加速還是繼續沿著他們原來的道路走還為時過早。我想說，我們可能必須加快資本支出，因為我們再次得到了不僅來自現有客戶的反饋，而且來自新客戶的反饋，他們沒有太多的足跡，因為他們認為這實際上是美國總部公司多元化和製造足跡比現有的 Cloud Light 更加全球化的一個極端積極因素。因此，我認為我們必須等待，並在下次電話會議或未來的會議上向您提供有關 Cloud Light 資本支出計劃的最新資訊。

As far as the 800-gig ZR ramp, I think we're still at the demonstration stage today and with again positive feedback at ECOC, we've got to get from where we're today to beta samples and qualification samples and then it takes a couple of thousand hours of testing to get to production. So I'd say that's really more of a early fiscal '25 and late calendar '24 type of initial ramp. But again, I think we're positioned quite well with what we think will be first to market on that product. So very, very happy with progress there.

就 800gig ZR 坡道而言，我認為我們今天仍處於演示階段，並且再次得到了 ECOC 的積極反饋，我們必須從今天的狀態發展到 beta 樣品和認證樣品，然後需要幾千個小時的測試才能投入生產。所以我認為這實際上更像是 25 財年初期和 24 日曆年末類型的初始成長。但我再次認為，我們對該產品的市場定位非常有利，我們認為該產品將率先進入市場。我對那裡的進展感到非常非常高興。

Our next question comes from the line of David Vogt from UBS.

我們的下一個問題來自瑞銀的 David Vogt。

Great. I'm just going to try maybe triangulating again on this Cloud Light transaction. So I think Alan, in your prepared remarks, you suggested that the business should accelerate to about 30% growth in calendar year '24. If I just do some really quick math, does that assume your legacy business returns to growth in '24 based on sort of the disclosure that Cloud Light has about $200 million of revenue growing, obviously, relatively rapidly?

偉大的。我只是想再次嘗試對這個 Cloud Light 交易進行三角測量。所以我認為艾倫，在你準備好的發言中，你建議業務應該在 24 日曆年加速到 30% 左右的成長。如果我做一些快速的計算，是否基於 Cloud Light 約 2 億美元的收入增長（顯然增長相對較快）這一披露，假設您的傳統業務在 24 年恢復增長？

And then in conjunction with that, from a margin perspective, I know you talked about it on the last call, as it being sort of a slightly accretive transaction with regards to the first 12 months post closing. But can you kind of maybe share with us sort of the margin profile of this business relative to the existing sort of Cloud and Networking part of the business pre the transaction?

然後，結合這一點，從利潤率的角度來看，我知道您在上次電話會議上談到了這一點，因為就交易結束後的頭 12 個月而言，這是一種略微增值的交易。但是，您能否與我們分享一下該業務相對於交易前現有的雲端和網路業務部分的利潤狀況？

Yes. Let me take the first question, and then I'll have Wajid talk about Cloud Light margins. So I think you're right about the growth rate. And again, as I said to Meta's earlier question, feedback has been very positive. And when we turn those -- that feedback into orders, we could grow faster. But again, I think that's a little early. But the impact on -- I don't think Cloud Light has any impact on the legacy business, except that we're very much closer to the cloud customers. And we're not going to guide more than 1 quarter at a time, and we're actually not going to split up legacy versus Cloud Light in the future.

是的。讓我回答第一個問題，然後讓 Wajid 談談 Cloud Light 的利潤率。所以我認為你對成長率的看法是正確的。正如我之前回答 Meta 的問題時所說的那樣，反饋非常積極。當我們將這些回饋轉化為訂單時，我們就能更快地發展。但我再次認為這還為時過早。但我認為 Cloud Light 對傳統業務沒有任何影響，只是我們與雲端客戶的關係更加密切。我們不會一次指導超過一個季度，而且我們實際上將來不會將傳統業務與 Cloud Light 分開。

But I'd say that as we talked about, we do believe we're undershipping end market demand and inventories are reducing. So we do anticipate that in the first half of '24, that there's probably a pickup, more matching our shipments within customer consumption probably in Q4. So I would expect that we would see a pickup in Q4 from today's levels. But Q3 is a little bit hard to call right now. Wajid?

但我想說，正如我們所討論的，我們確實認為我們的出貨量不足以滿足終端市場的需求，而且庫存正在減少。因此，我們確實預計，在 2024 年上半年，我們的出貨量可能會回升，很可能在第四季與客戶消費量更加匹配。因此我預計第四季我們的業績將比現在有所回升。但現在 Q3 有點難預測。瓦吉德？

Yes, David. So on the margin profile, we certainly see a lot of opportunity with Cloud Light. With the rapid growth that we're expecting in the business, there's some natural leverage that we should see at Cloud Light. And there's also a lot of opportunity with our existing manufacturing footprint to help that part of the business grow while utilizing some of the manufacturing capacity that we've also got.

是的，大衛。因此，從利潤率來看，我們確實看到 Cloud Light 有很多機會。隨著我們預期業務的快速成長，我們應該在 Cloud Light 中看到一些自然的優勢。而且，我們現有的製造足跡也有很多機會可以幫助這部分業務成長，同時利用我們現有的部分製造能力。

And then probably the most important thing, which our R&D teams are going to be working with their R&D teams over the next few weeks, is really our plans around vertical integration. And those plans around vertical integration can provide quite a bit of upside from an in-feed standpoint on their own raw materials. So having said that, what we've communicated previously is that the Cloud Light business is currently operating in the low teens from an operating margin standpoint and in the high teens from an EBITDA standpoint.

然後可能最重要的事情是，我們的研發團隊將在接下來的幾週內與他們的研發團隊合作，制定我們圍繞垂直整合的計畫。從進料角度來看，這些圍繞垂直整合的計劃可以為自己的原材料帶來相當大的好處。話雖如此，我們之前已經傳達過，從營業利潤率的角度來看，Cloud Light 業務目前的營運處於十幾歲的低位，從 EBITDA 的角度來看，則處於十幾歲的高位。

Our expectation that we've communicated is that through the opportunities that we see that we can certainly get that business into the high teens from an operating margin standpoint over the next 24 months. As the teams dig in more with their R&D teams, we'll be able to update our thinking around that in future quarters, but that's currently where our thinking is in terms of the business.

我們已經傳達的期望是，透過我們看到的機會，我們一定可以在未來 24 個月內從營業利潤率的角度將業務提升到十幾個百分點。隨著團隊與研發團隊的深入合作，我們將能夠在未來幾季更新我們的想法，但就業務而言，這就是我們目前的想法。

Our next question comes from the line of Vivek Arya from Bank of America Securities.

我們的下一個問題來自美國銀行證券的 Vivek Arya。

First question, I know you gave a 30% growth potential for Cloud Light, but that's more like a 3 to 5 year. Is it fair to say that they are growing faster than that? When I look at a lot of the compute deployments, they are growing like a 40%, 50% type of CAGR. So is it fair to assume that at least in the near to medium term, Cloud Light could be growing more at a 40%, 50% rather than a 30% rate?

第一個問題，我知道您給了 Cloud Light 30% 的成長潛力，但這更像是 3 到 5 年的時間。可以說他們的成長速度比這更快嗎？當我看到大量的計算部署時，它們的複合年增長率達到 40% 或 50%。那麼，是否可以公平地假設，至少在中短期內，Cloud Light 的成長率可能會達到 40%、50%，而不是 30%？

Yes, I think that's fair. Given the introduction and rapid growth at 800 gig, we expect that Cloud Light should be able to grow faster than that 30% CAGR that is a multiyear number. As 800 gig has been introduced, we highlighted that Cloud Light's revenue in the most recent quarter was more than 50% 800 gig. So we'll be highly levered to the growth of that as customers at the leading edge of AI deployments continue to shift to the 800 gig speed.

是的，我認為這很公平。鑑於 800Gig 的推出和快速成長，我們預計 Cloud Light 的成長速度應該能夠超過多年的 30% 複合年增長率。隨著 800Gig 的推出，我們強調 Cloud Light 最近一個季度的營收有 50% 以上來自 800Gig。因此，隨著處於 AI 部署前沿的客戶繼續轉向 800 千兆速度，我們將高度重視這一成長。

And for my follow-up, I just wanted to kind of double check the accretion math or the potential accretion math. So first of all, when you say something is accretive, are you talking on the EBITDA level, are you talking on an operating income level, at an EPS level? So if you could define what accretion means? And let's say, if you define accretion on an EPS level, then is it immediately accretive? Or will it be accretive sometime in the fiscal year when we put in all the puts and takes of the financial income, right, that is being lost and other fab consolidation activities and so forth? So when is it actually potentially accretive on an EPS perspective in your opinion?

對於我的後續行動，我只是想再次檢查吸積數學或潛在吸積數學。那麼首先，當您說某事物具有增值性時，您是在談論 EBITDA 水平，還是在談論營業收入水平，還是 EPS 水平？那你能定義一下吸積的意思嗎？假設您在 EPS 等級上定義增值，那麼它會立即增值嗎？或者，當我們把所有的財務收入投入和收益都計入財政年度的某個時候，它會增值嗎？對吧，那是正在損失的，還有其他晶圓廠整合活動等等？那麼，您認為從 EPS 角度來看，什麼時候才真正具有增值潛力？

So Vivek, we've communicated this earlier. We believe it's immediately accretive to earnings per share. And the way we do the math on the earnings per share is the operating income we expect to generate from Cloud Light on a stand-alone basis without synergies and compare that to what we're earning in our short-term overnight money market rates.

所以 Vivek，我們之前已經溝通過這一點。我們相信這會立即增加每股收益。我們計算每股收益的方式是，計算我們預計在不考慮協同效應的情況下從 Cloud Light 獨立產生的營業收入，並將其與我們在短期隔夜貨幣市場利率中的收益進行比較。

And so we just take a look at those 2 to determine accretion. And based on that, the transaction is immediately accretive. And that accretion only improves as we go through some of the synergy actions I spoke about earlier.

因此我們只需看一下這兩個就可以確定吸積。基於此，交易立即增值。當我們採取我之前談到的一些協同行動時，這種成長只會得到改善。

Our next question comes from the line of George Notter from Jefferies.

我們的下一個問題來自 Jefferies 的 George Notter。

I'm just curious if you guys have gotten any other feedback on the Cloud Light acquisition from your other datacom customers. I think, obviously, you're competing with some of those folks increasingly. I'm just wondering if in the last week or 2, you've had any more feedback. Is this something that becomes problematic for the rest of the datacom business or nonissue?

我只是好奇你們是否從其他數據通訊客戶那裡得到了有關 Cloud Light 收購的其他回饋。我認為，顯然你正在與其中一些人展開日益激烈的競爭。我只是想知道在過去一兩週內您是否收到了更多回饋。這對於其餘數據通訊業務來說是否會成為問題？還是根本不是問題？

Yes. Thanks, George. As you can imagine, I've had many discussions with our very important transceiver customers to assure them that they -- our partnership is still very solid and they're very, very important to us. And I think there's plenty of demand to go around, and we've acted like strong partners with them over time.

是的。謝謝，喬治。你可以想像，我已經與我們非常重要的收發器客戶進行了多次討論，向他們保證——我們的合作夥伴關係仍然非常牢固，他們對我們非常非常重要。我認為有很多需求，而且長期以來我們一直是他們強有力的合作夥伴。

So I'd say that the alternative is that they buy from another competitor or they buy from someone that they've trusted for years. And so I don't see any negative implication with respect to our transceiver customers and their demand on us for EMLs, VCSELs and DMLs for that matter. So I think so far, so good. The feedback has been positive, and we have not seen any demand shifts as a result of the announcement from a week or 2 ago.

所以我想說，另一個選擇是他們從另一個競爭對手那裡購買，或從他們多年來信任的人那裡購買。因此，我認為對我們的收發器客戶以及他們對我們的 EML、VCSEL 和 DML 的需求不會產生任何負面影響。所以我認為到目前為止一切都很好。回饋是正面的，我們並未看到一周或兩週前的公告導致任何需求變化。

Our next question comes from the line of Christopher Rolland from Susquehanna.

我們的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

One of your competitors spoke of a strong ramp in 800G starting in March. I was wondering if you could kind of describe the shape of your 800G ramp here over the next 12 to 18 months. And they were going to see kind of as a result of this strong growth, sequential growth each quarter of next year. I was wondering if you would see something similar on your horizon.

你們的一位競爭對手錶示，從三月開始，800G 將會強勁成長。我想知道您是否可以描述一下未來 12 到 18 個月內 800G 成長的狀況。他們將會發現這種強勁成長的結果是明年每季的連續成長。我想知道你是否會在視野中看到類似的東西。

Chris, yes, I would say we would see very similar commentary at both from the chip standpoint that we're shipping a lot of EMLs and have very strong demand that we expect to continue over the next 4-plus quarters as 800 gig continues to ramp. And then from the Cloud Light acquisition, their revenue is, as we've highlighted on the call, increasingly focused on 800 gig and that is -- in its very early days that market is just emerging and will continue to ramp up into the future.

克里斯，是的，我想說，從晶片的角度來看，我們會看到非常相似的評論，即我們正在運送大量 EML，並且需求非常強勁，我們預計這種需求將在未來 4 個多季度內持續下去，因為 800G 將繼續增長。然後，從收購 Cloud Light 開始，正如我們在電話會議上所強調的那樣，他們的收入越來越集中在 800Gig 上，而且這個市場還處於早期階段，剛剛興起，並將在未來繼續增長。

So yes, we believe the 800-gig portion of our cloud business will continue to grow into the foreseeable future.

所以是的，我們相信我們的雲端業務的 800G 部分將在可預見的未來繼續成長。

Okay. I don't know if you had to take on sequential growth in each quarter of next year, calendar year. But for my second question, I wanted to talk about kind of custom engagements for laser designs by both system vendors, holistic system vendors, but also hyperscalers out there. And I don't know if it's possible to kind of break out cloud and networking demand. So 51 terabit switches versus AI, but how do you think this mix is out for next year as well?

好的。我不知道您是否必須實現明年、日曆年每季的連續成長。但對於我的第二個問題，我想談談系統供應商、整體系統供應商以及超大規模供應商對雷射設計的客製化參與。我不知道是否有可能突破雲端和網路需求。那麼 51 太比特交換器與 AI 相比，您認為明年這種組合會如何呢？

So a couple of pieces. So on the last bit with regards to sort of where our products are landing, if you will, AI versus non-AI. We don't have 100% visibility to that. But our belief is that for the next year, at least, most of the growth or the primary growth in the market is driven by AI-driven applications. And then going back to custom laser designs or, if you will, yes, we're engaged with both, as you said, system providers, if you will, as well as cloud operators directly, hyperscalers.

所以有幾件。因此，最後一點關於我們的產品落地的方向，如果你願意的話，是人工智慧還是非人工智慧。我們對此還沒有 100% 的了解。但我們相信，至少在未來一年，市場的大部分成長或主要成長將由人工智慧驅動的應用推動。然後回到客製化雷射設計，或者，如果你願意的話，是的，正如你所說，我們正在與系統供應商以及雲端運營商、超大規模企業直接合作。

On custom laser solutions as well as now with Cloud Light custom transceiver solutions as AI continues to push the performance envelope and stress from power consumption, latency and other requirements that are really critical to AI workloads. And that's one of the benefits of this combination that we're bringing together unique manufacturing capabilities from Cloud Light, bringing together our unique chip manufacturing so that when we partner with customers, we have the full tool chest, if you will, to address the challenges of next-generation road maps that they're looking to implement sooner than later.

隨著人工智慧繼續突破性能極限，並應對功耗、延遲和其他對人工智慧工作負載至關重要的要求的壓力，我們推出了客製化雷射解決方案以及現在的 Cloud Light 客製化收發器解決方案。這是我們合併的優勢之一，我們將雲光獨特的製造能力整合在一起，將我們獨特的晶片製造能力整合在一起，這樣當我們與客戶合作時，我們就可以擁有完整的工具箱，以應對他們希望盡快實施的下一代路線圖的挑戰。

Our next question comes from the line of Ananda Baruah from Loop Capital.

我們的下一個問題來自 Loop Capital 的 Ananda Baruah。

Yes, I'll just stick with transceivers as well. Do you guys see, and this would probably be for Chris or Alan, any latency points or sticking points getting Cloud Light, now that you've closed the deal, getting Cloud Light volumes to kind of what you call run rate? And then I have a quick follow-up.

是的，我也會堅持使用收發器。你們看到了嗎，這可能是針對 Chris 或 Alan 的，現在你們已經完成了交易，Cloud Light 的數量是否達到了所謂的運行率，是否存在任何延遲點或癥結？然後我有一個快速的後續問題。

Could you clarify what you mean Ananda?

你能解釋一下阿南達的意思嗎？

Yes. So I mean I guess as everything in place -- is it as simple as just taking the orders in and shipping them out? Or given that -- sort of given that they're newly absorbed into the organization, given that your balance sheet and your kind of street credit, so to speak, may open up new opportunities for them. Given the manufacturing capability they have in place, are there things that could be required that could, in the near term, cause some latency to getting those orders out the door as they come in? So just wondering, is the mechanism -- is it just set up to work smoothly and elegantly right now taking the orders in and send them out? Or is there something that needs to be put into place or accomplish near term to get the orders to run rate revenue?

是的。所以我的意思是，我想當一切準備就緒時——這是否就像接收訂單並發貨一樣簡單？或者考慮到——考慮到他們剛剛被吸收到組織中，考慮到你的資產負債表和你的街頭信用，可以這麼說，可能會為他們開闢新的機會。考慮到他們現有的製造能力，是否存在一些可能需要的東西，這些東西可能會在短期內導致訂單發出時出現一些延遲？所以我只是想知道，這個機制——它現在是否已經設置為可以順利而優雅地接收訂單並發送出去？或者是否需要在短期內採取或完成某些措施來使訂單達到運行率收入？

Yes. I mean the Cloud Light team is not lacking orders, if that's what you mean. So I think, as I said earlier, capacity plans and CapEx plans have continued to be able to ramp to the kind of volumes that they had visibility to prior to the acquisition. That said, I do think we will see further demand acceleration and that could take additional capacity in -- as well as additional factory footprints. And I think that would be then accelerated with the acquisition in that we have factory footprints that we could expand into today.

是的。我的意思是，雲光團隊並不缺少訂單，如果你是這個意思的話。因此我認為，正如我之前所說，產能計劃和資本支出計劃能夠繼續提升到收購前所能預見的水平。話雖如此，我確實認為我們將看到需求進一步加速，這可能需要額外的產能以及額外的工廠佔地面積。我認為，透過此次收購，我們可以加速這一進程，因為我們現在擁有可以擴展的工廠規模。

Given that we're all of 24 hours into the close and we have a team there now. We're sorting all that out, frankly, and we hope not to screw it up, frankly. So they've been doing very well. We're trying to stay -- we're trying to let them do their stuff and not distract them as they're going up a very, very steep ramp. But that said, we're here to help them. And I think the combination is really a winner from my discussions with those cloud customers.

鑑於我們已經結束了 24 小時並且我們現在有一個團隊在那裡。坦白說，我們正在理清所有這些事情，坦白說，我們希望不要把事情搞砸。所以他們做得很好。我們試著讓他們做自己的事情，而不是在他們爬上非常陡峭的斜坡時分散他們的注意力。但話雖如此，我們還是來幫助他們。從我與那些雲端客戶的討論來看，我認為這個組合確實是一個成功的方案。

Yes, that's super helpful. That's super helpful. And I guess just in that regard, sort of the follow-up would be, given you made 2 acquisitions in the -- sort of in the pluggable space in the last 12 months or so, sort of 12 -- 4 to 6 quarters, could you stay active in this area? It's obviously an area of interest. Do you have everything you need? Or do you think -- does it make sense that you could keep looking from a tech perspective?

是的，這非常有幫助。這非常有幫助。我想就此而言，後續問題可能是，鑑於您在過去 12 個月左右（大概 12-4 到 6 個季度）在可插拔領域進行了 2 次收購，您能否繼續活躍於該領域？這顯然是一個值得關注的領域。你需要的一切都有了嗎？或者您認為－從技術角度繼續觀察是否有意義？

Yes. I mean we're always looking. I think our focus is making sure we finish the acquisition synergies of NeoPhotonics, and Wajid talked about that. The back-end factory consolidation is happening now, and we'll get that benefit of those synergies at the end of this fiscal year, and that's meaningful. So we have to finish that and we have to make sure that the Cloud Light acquisition goes up the ramp effectively to meet the demands of what's going on in the hyperscalers and AI EML stuff.

是的。我的意思是我們一直在尋找。我認為我們的重點是確保完成 NeoPhotonics 的收購協同效應，Wajid 也談到了這一點。後端工廠整合正在進行中，我們將在本財政年度結束時獲得這些協同效應帶來的好處，這是很有意義的。所以我們必須完成這項工作，我們必須確保 Cloud Light 收購能夠有效推進，以滿足超大規模和 AI EML 領域的需求。

So I think we have our hands full today for the next several quarters. But that said, we're always looking and always interested in what we might be able to tuck in to give us another competitive advantage over our competition. Chris, do you have anything else to add?

所以我認為我們今天要為接下來的幾季做很多事情。但話雖如此，我們始終在尋找並始終對我們可以利用哪些資源來讓我們在競爭中獲得另一個競爭優勢感興趣。克里斯，您還有什麼要補充的嗎？

I was just going to say that -- to reiterate that I think Ananda is hitting a key point that we have had a deliberate strategy to build out both technology, manufacturing on the component capabilities over the last number of years, and then that's translated into now getting more pluggable transceiver capabilities. And as Alan highlighted, as that all has come together now, we've got time to put all those pieces together and fully realize the benefits of those acquisitions and the post-acquisition organic work we're performing to really unlock the value and the multiplier effect between all of these acquisitions.

我只是想說——重申一下，我認為阿南達觸及了一個關鍵點，即我們在過去幾年中製定了一個深思熟慮的戰略，以構建技術和組件製造能力，然後這轉化為現在獲得更多可插拔收發器功能。正如艾倫所強調的，現在一切都已匯集在一起，我們有時間將所有這些部分整合在一起，充分實現這些收購的好處以及我們正在進行的收購後有機工作，以真正釋放所有這些收購之間的價值和乘數效應。

But we're continuing to look. We're not done, if you will, building out our technology and product portfolios. But for the time being, we've got a lot of work to do to realize the maximum potential of what we've already taken on.

但我們仍在繼續觀察。如果你願意的話，我們的技術和產品組合的建構工作還沒完成。但就目前而言，我們還有很多工作要做，才能最大限度地發揮我們已經承擔的職責的潛力。

Your next question comes from the line of Mike Genovese from Rosenblatt Securities.

您的下一個問題來自羅森布拉特證券公司的 Mike Genovese。

Great. First, can you guys talk more about the optical switch opportunity for AI, more about that technology and sort of how far away revenues are? And is that a MEMS-based product? I'm curious.

偉大的。首先，你們能否多談談人工智慧的光開關機會、有關該技術的更多資訊以及距離收入還有多遠？那是基於 MEMS 的產品嗎？我很好奇。

Mike, so in today's data centers, obviously, there's a lot of bandwidth going around and as we've seen in core telecom networks for years being able to reconfigure the network optically and electronically brings a lot of value in hyperscale network operators or cloud operators rather, are beginning to realize that being able to reconfigure bandwidth optically within data centers is a key capability.

麥克，在當今的數據中心，顯然有大量的頻寬在傳輸，正如我們多年來在核心電信網絡中看到的那樣，能夠以光學和電子方式重新配置網絡，為超大規模網絡運營商或雲運營商帶來了很多價值，他們開始意識到能夠在數據中心內以光學方式重新配置頻寬是一項關鍵能力。

There's a range of technology that can be applied. In our case, it's certainly will involve MEMS. I would say, in terms of time to market, a little premature to talk about an exact time frame, but I think over the next year, you're going to hear a lot more about it as prototypes begin to ship.

有多種技術可以應用。在我們的案例中，它肯定會涉及 MEMS。我想說，就上市時間而言，談論確切的時間框架還為時過早，但我認為在接下來的一年裡，隨著原型開始發貨，你會聽到更多關於它的消息。

Great. And I guess something maybe more immediate then. Your competitor yesterday spoke about some near-term opportunity where they expected sequential growth because of some transport opportunities in China, WSS, ROADMs and amps. Are you seeing anything similar to that?

偉大的。我想接下來可能會發生更緊迫的事情。您的競爭對手昨天談到了一些近期機會，他們預計由於中國、WSS、ROADM 和放大器等一些傳輸機會，將實現連續增長。您看過類似的東西嗎？

Yes. I mean we've seen the China Mobile tender is happening, and it's really -- it's kind of nice to get a customer to expedite WSSs and the components that go around them. So we've been in the midst of that, and we're trying to meet that demand for that tender. And I think it's meaningfully large and it's an opportunity and I think one that will drive calendar '24 volumes more meaningful for that specific opportunity. But that's, I think, more of a unique situation where the deployments are happening or bidding is happening and the deployments will happen early parts of next year.

是的。我的意思是，我們已經看到中國移動的招標正在進行，這真的——讓客戶加快 WSS 及其相關組件的開發是件好事。因此，我們一直處於這一階段，並正在努力滿足該招標的需求。我認為這是一個意義重大的機會，我認為這個機會將推動日曆 24 卷更有意義。但我認為這更像是一種特殊情況，部署正在進行或競標正在進行，並且部署將在明年年初進行。

So yes, that is an opportunity and we're seeing that. And I've been on the phone with the executives there to help them get what they need when they need it.

是的，這是一個機會，我們正在看到它。我一直與那裡的高管通電話，幫助他們在需要時獲得所需的東西。

Question comes from the line of Ruben Roy from Stifel.

問題來自 Stifel 的 Ruben Roy。

To just follow up there, Alan, you did mention that you're -- I think, over the last 90 days, it sounded like you started to see some areas of telco softness. I was wondering if that was a geography-based comment or customer or end market-based comment. Any additional detail there, please?

艾倫，我只是想跟進一下，你確實提到過——我認為，在過去的 90 天裡，你似乎開始看到電信業的一些疲軟領域。我想知道這是基於地理位置的評論還是基於客戶或終端市場的評論。請問還有其他詳細資訊嗎？

I think it's just echoing what I think you've heard from some of our network equipment manufacturers around regional softness and an inventory at the North America carrier. So I don't think it's anything new and enlightening. It's kind of more of the same that we've seen that is making us be cautious about the outlook for current quarter and into early calendar '24.

我認為這與您從我們的一些網路設備製造商那裡聽到的有關區域疲軟和北美運營商庫存的消息相呼應。所以我認為這並沒有什麼新穎和啟發性的東西。我們看到的情況與之前類似，這讓我們對本季以及 2024 年初的前景保持謹慎。

Okay. Got it. And then as a follow-up, probably for Chris. With even more focused on data center optics. I was wondering if you can give us an uptick -- an update on how you're thinking about the coherent DSP project? And whether or not longer term, you think there's spot for that team in what you're planning on with data center optics.

好的。知道了。然後作為後續行動，可能針對克里斯。更專注於資料中心光學。我想知道您是否可以告訴我們您對連貫 DSP 專案的看法？無論從長遠來看，您認為該團隊在您規劃的資料中心光學系統方面有一席之地。

Yes. So certainly, we continue to make great progress in developing our coherent DSP, which is one of another puzzle piece, if you will, in our pluggable module strategy. So we expect that will -- we will start evaluating our latest 400-gig parts in calendar '24, early calendar '24. And yes, I think it's a critical capability both for the data center interconnect opportunity. And over the longer run, in fact, we expect that technology to penetrate further inside of the data center as well, I think you referenced.

是的。因此，我們在開發相干 DSP 方面肯定會繼續取得巨大進展，如果您願意的話，這是我們可插拔模組策略中的另一個拼圖。因此，我們預計 - 我們將在 24 年初開始評估我們最新的 400gig 零件。是的，我認為這對資料中心互連機會來說都是一項關鍵能力。從長遠來看，事實上，我們預計該技術也將進一步滲透到資料中心內部，我想您提到過。

And maybe if I could add to that, Ruben -- if I could add to that as well. We have been building out not only our DSP team but other RFIC team to have critically enabling components in-house to address that margin stacking of the independent IC company. So that -- those teams have been building out, and we've started to see the benefits of things like TIAs and drivers that having that in-house is a big benefit for us.

也許我可以補充一下，魯本——如果我也可以補充一下。我們不僅在組建我們的 DSP 團隊，還在組建其他 RFIC 團隊，以便在內部擁有關鍵的支援組件，以解決獨立 IC 公司的利潤堆積問題。所以 — — 這些團隊一直在不斷壯大，我們也開始看到 TIA 和驅動程式等在內部運作的好處，這對我們來說是一個巨大的優勢。

And we have our next question coming from the line of Dave Kang from B. Riley.

我們的下一個問題來自 B. Riley 的 Dave Kang。

First question is regarding your comments on telecom. So how much decline are we -- should we expect in the December quarter? Are we talking a slight decline or still like a high single digit to maybe even double digits?

第一個問題是關於您對電信的評論。那麼，我們預計 12 月季度的降幅應該有多大？我們談論的是輕微的下降，還是仍然處於個位數甚至兩位數的下降？

Yes, I don't think we had indicated that there'd be a decline. I think what we're indicating is that we're still shipping below end customer consumption. And so it's muted with respect to being back to parity with regard to us building and shipping what our customers are shipping and deploying. And so that's more the comments than it's going in the wrong direction because we're already at a very low level.

是的，我認為我們沒有暗示會出現下滑。我認為我們所表明的是，我們的出貨量仍然低於最終客戶的消費量。因此，就我們建造和運輸客戶運輸和部署的產品而言，恢復到平價水平是件很難的事。因此，這更多的是評論，而不是朝著錯誤的方向發展，因為我們已經處於非常低的水平。

Got it. And then regarding your comments about CNN being up in calendar '24 year-over-year. I assume that was organic, right?

知道了。然後關於您對 CNN 在 24 月的收視率同比上升的評論。我認為那是有機的，對嗎？

I'm sorry, I missed the beginning of the question. What being up?

抱歉，我錯過了問題的開頭。發生什麼事了？

Cloud and networking, I think -- I believe you said it's going to be up calendar '24. It's organic, right?

我認為，雲端和網路——我相信您說過它將在 24 年實現。它是有機的，對嗎？

I would say both organic and inorganic. We expect that to be up. Yes.

我想說的是有機和無機。我們預計這一數字將會上升。是的。

Okay. So just to be clear, I mean, even without Cloud Light, CNN will be up next year, next calendar year.

好的。所以要先明確的是，即使沒有 Cloud Light，CNN 明年、下個日曆年也會繼續播出。

Yes.

是的。

Okay. I just wanted to clarify that.

好的。我只是想澄清這一點。

There are no further questions at this time. I'd now like to turn the call back over to Mr. Alan Lowe for final closing comments.

目前沒有其他問題。現在我想將電話轉回給艾倫·洛先生，請他發表最後的總結評論。

Great, and thank you. I'd like to leave you with a few thoughts as we wrap up this call. First, I would like to extend a very warm welcome to the Cloud Light team joining Lumentum. The talented Cloud Light team already excels at delivering the highest speed optical transceivers to cloud data center operators and infrastructure providers. I very much look forward to our R&D teams working together to see what else is possible to deliver even more leading-edge product innovations to our customers.

太好了，謝謝你。在我們結束這通通話之前，我想先給你們留下一些想法。首先，我要熱烈歡迎Cloud Light團隊加入Lumentum。才華橫溢的 Cloud Light 團隊已經擅長向雲端資料中心營運商和基礎設施供應商提供最高速度的光收發器。我非常期待我們的研發團隊共同努力，探索如何為我們的客戶提供更多前沿的產品創新。

In addition, our business fundamentals are solid for the mid- to long term as we serve the exponential growth in data center bandwidth required by the artificial intelligence, machine learning, mobile carrier and cloud computing markets. New industrial applications are driving demand for our advanced imaging and sensing products and our commercial lasers are expanding into high-growth applications beyond our traditional markets. We're committed to investing in innovation to meet customer needs today and in the future.

此外，由於我們滿足人工智慧、機器學習、行動營運商和雲端運算市場所需的資料中心頻寬的急劇成長，我們的業務基礎在中長期內是穩固的。新的工業應用正在推動我們先進成像和感測產品的需求，我們的商用雷射正在擴展到傳統市場之外的高成長應用領域。我們致力於投資創新以滿足客戶當前和未來的需求。

With that, I would like to thank everyone for attending, and we look forward to talking with you again at investor conferences and upcoming meetings in the coming weeks. Thank you.

最後，我要感謝大家的出席，我們期待在未來幾週的投資者會議和即將召開的會議上再次與您交談。謝謝。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，並請您斷開線路。祝您有個愉快的一天。