MACOM Technology Solutions Holdings, Inc. (MTSI) 2021 Q2 法說會逐字稿

Welcome to MACOM's Second Quarter 2021 Conference Call. This call is being recorded today, April 29, 2021. (Operator Instructions)

歡迎參加 MACOM 2021 年第二季電話會議。本次會議於 2021 年 4 月 29 日錄音。（接線員指示）

I will now turn the call to Mr. Steve Ferranti, MACOM's Vice President of Strategic Initiatives and Investor Relations. Mr. Ferranti, please go ahead.

現在我將把電話交給 MACOM 策略倡議與投資人關係副總裁 Steve Ferranti 先生。Ferranti 先生，請開始。

Thank you, Olivia. Good morning, everyone, and welcome to MACOM's conference call to discuss its second fiscal quarter of 2021 financial results.

謝謝你，Olivia。各位早安，歡迎參加 MACOM 的電話會議，討論 2021 會計年度第二季的財務結果。

I would like to remind everyone that our discussion today will contain forward-looking statements, which are subject to certain risks and uncertainties as defined in the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. For a more detailed discussion of the risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC.

我想提醒各位，我們今天的討論將包含前瞻性陳述；此類陳述受 1995 年《私人證券訴訟改革法案》中關於前瞻性陳述之安全港條款所界定的特定風險與不確定性影響。實際結果可能與今日討論內容有重大差異。關於可能導致差異之風險與不確定性的更詳細討論，請參閱 MACOM 向美國證券交易委員會（SEC）提交的文件。

Management's statements during this call will also include discussion of certain adjusted non-GAAP financial information. A reconciliation of GAAP to adjusted non-GAAP results are provided in the company's press release and related Form 8-K, which was filed with the SEC today.

管理層在本次電話會議中的發言亦將包含對若干經調整之非 GAAP 財務資訊的討論。GAAP 與經調整非 GAAP 結果之調節表已載於公司新聞稿及相關的 Form 8-K 中，該文件已於今日向 SEC 提交。

And with that, I will turn over the call to Steve Daly, President and CEO of MACOM.

接下來，我將把電話交給 MACOM 總裁兼執行長 Steve Daly。

Thank you, and good morning. I will begin today's call with a general company update. After that, Jack Kober, our Chief Financial Officer, will provide a more in-depth review of our second quarter results for fiscal year 2021. When Jack is finished, I will provide revenue and earnings guidance for the third quarter of FY '21, and then we will be happy to take some questions.

謝謝，各位早安。我將先就公司整體情況做一般性更新。之後，我們的財務長 Jack Kober 將更深入檢視 2021 會計年度第二季的業績。Jack 結束後，我將提供 2021 會計年度第三季的營收與獲利指引，接著我們很樂意回答一些問題。

Revenue for our second fiscal quarter was $150.6 million, and adjusted EPS was $0.51 per diluted share. Q2 results represent record-high adjusted gross margin and adjusted operating margin since MACOM went public 9 years ago. I would like to thank and congratulate our dedicated employees for their efforts to make this achievement possible. We remain focused on executing our strategic plan, which emphasizes profitability, and investing in compelling R&D projects in order to win market share.

我們第二會計季營收為 1.506 億美元，經調整後每股盈餘（EPS）為每股稀釋後 0.51 美元。第二季結果創下 MACOM 於 9 年前上市以來的最高經調整毛利率與經調整營業利益率。我想感謝並祝賀我們敬業的員工，因為他們的努力使這項成就得以實現。我們仍專注於執行以獲利能力為重點的策略計畫，並投資於具吸引力的研發專案，以贏得市占率。

Before discussing the second quarter in detail, I would like to highlight, on March 22, we announced we would use $100 million of cash on hand to pay down a portion of our long-term debt. In addition, we announced a convertible notes transaction to restructure a portion of the remaining debt. We believe these 2 actions reduce our balance sheet risk and create shareholder value by saving the company approximately $11 million in interest payments per year. In a few moments, Jack will review in detail these transactions.

在詳細討論第二季之前，我想強調：3 月 22 日我們宣布將動用 1 億美元的現金部位償還部分長期負債。此外，我們也宣布一項可轉換公司債交易，以重整剩餘負債的一部分。我們相信這兩項行動可降低資產負債表風險，並透過每年為公司節省約 1,100 萬美元利息支出來創造股東價值。稍後 Jack 將詳細說明這些交易。

Our Q2 revenue by end market was generally as we expected and included Industrial & Defense at $72.1 million, Telecom at $42.3 million and Data Center at $36.2 million. I&D was up 17% sequentially. Telecom was down 18% sequentially, and Data Center was up 2% sequentially. Our book-to-bill ratio was 1.1:1, and our turns business was approximately 16% of our total revenue. Overall, we are pleased with our Q2 bookings and the gains we are making in the market. This was a solid quarter, and we believe we are on plan to meet our near-term financial and technical objectives.

我們第二季按終端市場劃分的營收大致符合預期：工業與國防（I&D）為 7,210 萬美元，電信為 4,230 萬美元，資料中心為 3,620 萬美元。I&D 較前一季成長 17%；電信較前一季下滑 18%；資料中心較前一季成長 2%。我們的接單出貨比（book-to-bill）為 1.1：1，且短交期（turns）業務約占總營收的 16%。整體而言，我們對第二季接單表現以及在市場上取得的進展感到滿意。這是一個穩健的季度，我們相信我們正按計畫達成短期的財務與技術目標。

Now turning to more specifics on 3 end markets. Our Industrial & Defense end market revenue was up in Q2, driven in part by strong demand from a variety of industrial applications and U.S. defense radar programs. Over the past year, we have implemented new strategies to initiate growth, including increasing cross-selling of our technologies into industrial and defense markets, improving our sales channels, refocusing on key accounts and developing additional standard and custom products which will appeal directly to current and potential customers. These efforts are supporting some of our recent I&D growth.

接著更具體談三個終端市場。我們工業與國防終端市場第二季營收成長，部分受惠於多種工業應用以及美國國防雷達計畫的強勁需求。過去一年，我們已導入新的成長策略，包括提高將我們的技術交叉銷售至工業與國防市場、改善銷售通路、重新聚焦關鍵客戶，以及開發更多能直接吸引現有與潛在客戶的標準與客製化產品。這些努力正支撐我們近期 I&D 的部分成長。

Our Telecom end market revenue was down in Q2 driven by softness in 5G deployments in China. We anticipate our Telecom business will begin to improve when the Chinese carriers begin to launch additional 5G infrastructure. However, today, we have limited visibility as to the exact timing. We feel the secular growth opportunity in 5G remains intact as worldwide demand for improved connectivity at higher data rates is growing. We also expect revenue growth from PON, CATV and SATCOM in the next few quarters, primarily driven by strengthening markets, new product introduction and market share gains.

我們電信終端市場第二季營收下滑，主因是中國 5G 部署轉弱。我們預期當中國電信業者開始啟動更多 5G 基礎建設時，我們的電信業務將開始改善。然而，目前我們對確切時點的能見度有限。我們認為 5G 的長期結構性成長機會仍然存在，因為全球對更佳連線品質與更高資料速率的需求正在增加。我們也預期未來幾季 PON、有線電視（CATV）與衛星通訊（SATCOM）的營收將成長，主要由市場轉強、新產品導入與市占率提升所帶動。

Our Data Center end market revenue was up slightly in Q2 driven by both domestic and international business. We expect our emerging 400G products to perform well in the coming quarters, although this growth may be tempered by flat or reduced 100G volumes.

我們資料中心終端市場第二季營收小幅成長，動能來自國內與國際業務。我們預期新興的 400G 產品在未來幾季將有良好表現，但此成長可能會受到 100G 出貨量持平或下降的影響而有所抑制。

There are 4 technology areas that I would like to highlight today. First, I am pleased to announce we have developed a semiconductor process to support the introduction of a new high-voltage capacitor product line, branded as MACOM KV CAPS. Over the past 18 months, our device and process engineers have been collaborating to produce the industry's highest voltage silicon capacitors. The team has achieved industry-leading 1,800-volt standoff performance, which opens up new markets and new opportunities for MACOM.

今天我想重點說明四個技術領域。第一，我很高興宣布我們已開發出一套半導體製程，以支援推出新的高電壓電容產品線，品牌為 MACOM KV CAPS。過去 18 個月，我們的元件與製程工程師協同合作，打造業界最高電壓的矽電容。團隊已達成業界領先的 1,800 伏耐壓（standoff）表現，為 MACOM 開啟新市場與新機會。

This new process utilizes several one-of-a-kind proprietary MACOM technologies, and it builds upon our unique knowledge in creating deep trench via structures in very conductive silicon substrates. Our breakthrough here was to successfully develop a high-quality dielectric material that can withstand extremely high voltages and then combine it with other proprietary processes to maximize voltage performance.

這項新製程運用了多項獨一無二的 MACOM 專有技術，並建立在我們於高導電性矽基板中製作深溝槽通孔（deep trench via）結構的獨特知識之上。我們在此的突破，是成功開發出可承受極高電壓的高品質介電材料，並將其與其他專有製程結合，以最大化耐壓表現。

Capacitors are ubiquitous in electronic systems. Our business strategy is to target noncommodity systems, where customers will pay a premium for a semiconductor solution with superior stability, reliability, chip-scale size and high-voltage operation. This includes radar systems, medical systems, automotive, renewable energy and various industrial applications. We estimate that this product line will expand our SAM by at least $100 million, and we believe MACOM KV CAP products fit perfectly into our strategy to target performance-driven markets with unique, high-performance discrete devices.

電容在電子系統中無所不在。我們的商業策略是鎖定非大宗商品（noncommodity）系統，因為客戶願意為具備更佳穩定性、可靠性、晶片級尺寸與高電壓操作能力的半導體解決方案支付溢價。這包括雷達系統、醫療系統、汽車、再生能源以及各類工業應用。我們估計此產品線將使我們的可服務市場（SAM）至少擴大 1 億美元，並且我們相信 MACOM KV CAP 產品完全契合我們鎖定以效能驅動市場、提供獨特高效能分離元件的策略。

Second, I am pleased to report in Q2, we were selected to be a pallet amplifier supplier to a new U.S. defense radar program. In late 2020, we provided our customer with qualification hardware. And after a technical review and competitive bidding process, our solution was selected due to its superior performance. This win validates our ability to field best-in-class RF and microwave high-power amplifier pallet subassemblies and at the multi-hundred watt power level. The current pilot production volume is limited. However, this program and others like it represent a large growth opportunity.

第二，我很高興報告在第二季，我們獲選為一項新的美國國防雷達計畫提供功率放大器托盤（pallet amplifier）。在 2020 年底，我們向客戶提供了認證用硬體。經過技術審查與競標流程後，我們的解決方案因具備更優異的效能而獲選。此項勝利驗證了我們在數百瓦功率等級下，提供同級最佳 RF 與微波高功率放大器托盤子組件的能力。目前試產量有限；然而，此計畫及類似計畫代表龐大的成長機會。

And third, I am pleased to announce we have nearly finished our 25G DFB laser Telcordia qualification, which includes the completion of a 5,000-hour high-temperature operating life test. We are pleased with the results to date, and we believe our customers will be satisfied with our product's performance and reliability. We are targeting 5G optical infrastructure as a priority, and then we will focus on the data center. We expect that a formal product launch and introduction will come in the next few months.

第三，我很高興宣布我們幾乎已完成 25G DFB 雷射的 Telcordia 認證，其中包括完成 5,000 小時高溫操作壽命測試。我們對目前結果感到滿意，並相信客戶將對我們產品的效能與可靠性表示滿意。我們將 5G 光纖基礎建設列為優先目標，之後將聚焦資料中心。我們預期正式的產品發表與導入將在未來幾個月內進行。

And fourth, we are making excellent progress with the new 10G PON product development. We have completed development and are sampling laser drivers for 10G EPON, XG-PON and XGS-PON for both ONU and OLT applications. We have also released photodetectors for 10G ONU and OLT applications. We are finalizing the design of our new 1,270-nanometer high-power 10G DFB laser for XGS-PON. And finally, we continue to make progress on improving the burst mode TIA performance, allowing us to take market share.

第四，我們在新一代 10G PON 產品開發方面進展非常順利。我們已完成開發，並正在提供 10G EPON、XG-PON 與 XGS-PON 的雷射驅動器樣品，涵蓋 ONU 與 OLT 應用。我們也已釋出用於 10G ONU 與 OLT 應用的光偵測器。我們正在完成用於 XGS-PON 的新款 1,270 奈米高功率 10G DFB 雷射設計。最後，我們持續改善突發模式（burst mode）TIA 的效能，使我們得以取得市占率。

In June, MACOM will attend the International Microwave Symposium, or IMS, in Atlanta, Georgia; and the virtual Optical Networks and Communications Conference, or OFC. We are excited to host this series of virtual product demonstrations and educational MACOM tech talks for each event to share information on topics which we believe our customers will find valuable. The planned product demonstrations can say -- contain some of our newest products and will provide insight into the technology, products and applications, which we believe will drive our future revenue growth. I'll also note that these demonstrations exemplify the breadth of our RF, microwave, analog and mixed signal, digital and optical design capabilities.

6 月，MACOM 將參加在喬治亞州亞特蘭大舉行的國際微波研討會（International Microwave Symposium，IMS），以及線上舉辦的光網路與通訊會議（Optical Networks and Communications Conference，OFC）。我們很期待在每個活動中舉辦一系列線上產品展示與 MACOM 技術講座，分享我們認為客戶會覺得有價值的主題資訊。規劃中的產品展示將—包含我們部分最新產品，並提供對技術、產品與應用的洞見；我們相信這些將推動未來營收成長。我也要指出，這些展示體現了我們在 RF、微波、類比與混合訊號、數位以及光學設計能力方面的廣度。

Our IMS demonstrations can be organized into 3 categories: High-performance discretes, RF power and millimeter wave. Our 2 discrete component demonstrations include a demo of MACOM's KV CAPS product line being used in a simulated medical application and a high-performance, 200-watt 4 throw switch and driver for military applications.

我們的 IMS 展示可分為 3 大類：高效能分離式元件、RF 功率與毫米波。我們的 2 項分離式元件展示包括：在模擬醫療應用中使用 MACOM 的 KV CAPS 產品線的展示，以及用於軍事應用的高效能 200 瓦 4 throw（四擲）開關與驅動器。

Our 4 RF power amplifier demonstrations use our MACOM pure carbide GaN on Silicon Carbide technology. We will demo high-power GaN, showcasing a 3-kilowatt power level from a single device. We will also demonstrate high-efficiency GaN, showcasing high-efficiency performance between 3.1 and 3.5 gigahertz with 100-watt power amplifier. We will also showcase ultra-wideband GaN using our 25-watt pure carbide matched amplifier. And last, we will showcase the 5G massive MIMO GaN solution, showcasing 400-megahertz, 110-watt Doherty amplifier performance and a DPD system.

我們的 4 項 RF 功率放大器展示採用 MACOM 的 pure carbide GaN on Silicon Carbide（碳化矽基板上的純碳化物氮化鎵）技術。我們將展示高功率 GaN，呈現單一器件達到 3 千瓦的功率等級。我們也將展示高效率 GaN，呈現於 3.1 至 3.5 GHz 之間、搭配 100 瓦功率放大器的高效率表現。我們也將以 25 瓦 pure carbide 匹配放大器展示超寬頻 GaN。最後，我們將展示 5G 大規模 MIMO GaN 解決方案，呈現 400 MHz、110 瓦 Doherty 放大器效能以及一套 DPD 系統。

And last, 2-millimeter wave demonstrations, including a 5G 28 gigahertz transceiver front-end module and a demo which highlights how to power-combine 2 high-performance Ka-band MMIC power amplifiers to achieve over 10 watts of power.

最後是 2 項毫米波展示，包括一個 5G 28 GHz 收發器前端模組，以及一項展示，重點說明如何將 2 顆高效能 Ka 頻段 MMIC 功率放大器進行功率合成，以達到超過 10 瓦的輸出功率。

At OFC, we have multiple demonstrations planned, and I'll highlight 2 today. The first is a demonstration of a 2-chip analog solution for short-reach data center applications. Here, we will be demonstrating our new 2-chip fully analog solution for 200 and 400G QSFP module and AOC applications. Chip number one is a PAM4 CDR and TIA, and chip number two is a PAM4 CDR and VCSEL driver. The chipset will demonstrate IEEE standard-compliant bit error rate and Open Eye MSA transmit compliance and to also be interoperable with an Ethernet switch.

在 OFC，我們規劃了多項展示，今天我將重點介紹其中 2 項。第一項是用於短距離資料中心應用的 2 晶片類比解決方案展示。在此，我們將展示全新的 2 晶片全類比解決方案，適用於 200 與 400G QSFP 模組及 AOC 應用。第一顆晶片為 PAM4 CDR 與 TIA，第二顆晶片為 PAM4 CDR 與 VCSEL 驅動器。此晶片組將展示符合 IEEE 標準的位元錯誤率（BER）與 Open Eye MSA 發射端相容性，並且也可與乙太網路交換器互通。

The second is a demonstration of our new 50G reference design for 5G wireless mid-haul applications. This demonstration will feature a complete 50G PAM4 QSFP28 reference design using all-MACOM components. The demo platform is a 20-kilometer optical link with single-mode fiber using 1,310-nanometer wavelength. Our reference design showcases MACOM's new PRISM-50 DSP with integrated DML driver, a 26 gigabaud 1310 I-temp laser, a 26 gigabaud PIN photodiode and a 26 gigabaud PAM4 TIA.

第二項是我們用於 5G 無線中傳（mid-haul）應用的全新 50G 參考設計展示。此展示將呈現一套完整的 50G PAM4 QSFP28 參考設計，全部採用 MACOM 元件。展示平台為一條 20 公里光纖鏈路，使用單模光纖並採用 1,310 奈米波長。我們的參考設計展示 MACOM 全新的 PRISM-50 DSP（整合 DML 驅動器）、一顆 26 gigabaud 1310 I-temp 雷射、一顆 26 gigabaud PIN 光電二極體，以及一顆 26 gigabaud PAM4 TIA。

I'd next like to highlight that while MACOM has a large and diversified product portfolio, and we continue to invest in many new and existing product lines to drive future growth, we also have a few product lines where we make minimal investment. And as such, we expect in time that demand for certain of these product lines will ramp down. Two legacy product lines in our connectivity business are nearing the end of their product life cycles due to protocol upgrades or changes. We expect revenue from these product lines to decline in FY '22 by approximately $15 million when compared to the levels in FY '21. We view these periodic events as normal product life cycle management.

接下來我想強調，雖然 MACOM 擁有龐大且多元化的產品組合，並且我們持續在許多新舊產品線上投資以推動未來成長，但我們也有少數產品線的投資相對有限。因此，我們預期隨著時間推移，部分產品線的需求將逐步下滑。我們連接（connectivity）業務中的兩條傳統產品線，因通訊協定升級或變更而接近產品生命週期末期。我們預期這些產品線在 FY '22 的營收將較 FY '21 水準下降約 1,500 萬美元。我們將這類週期性事件視為正常的產品生命週期管理。

We are confident that our growth strategies and new products, including some of the products which I discussed today, will more than offset these anticipated declines. Our key growth driver is compelling new products, which is why we have been prioritizing, improving the quality and the pace of new product introductions. In fiscal 2020, we released a record number of new products, and I am pleased to report we are on pace to release at least 15% more new products in fiscal '21.

我們有信心，我們的成長策略與新產品（包括我今天討論的一些產品）將足以抵銷這些預期下滑。我們的關鍵成長動能是具吸引力的新產品，這也是我們為何一直優先提升新產品導入的品質與速度。在 2020 會計年度，我們發布了創紀錄數量的新產品；我也很高興報告，我們正按進度在 '21 會計年度至少再多發布 15% 的新產品。

Jack will now provide a more detailed review of our financial results.

接下來 Jack 將更詳細地回顧我們的財務結果。

Thank you, Steve, and good morning, everyone. We had record financial performance for our second fiscal quarter ended April 2, 2021, achieving gross margin of 59.2% and adjusted operating margin of 27.8%. In addition, we delivered sequential growth in revenue and earnings per share.

謝謝你，Steve，各位早安。我們在截至 2021 年 4 月 2 日的第二個會計季度創下創紀錄的財務表現，毛利率達 59.2%，調整後營業利益率達 27.8%。此外，我們的營收與每股盈餘也呈現季增。

Before reviewing the details of our Q2 financials, I want to note that we recently completed a few strategic financial transactions initiated during the quarter, which I will summarize. First, on March 22, we announced a $100 million principal paydown of our term loans utilizing available short-term investments and cash. We view this as an important step towards delevering our balance sheet and one that is consistent with our long-term goal of reducing our debt and associated leverage ratios. Our ability to pay down principal on the term loan is the direct result of MACOM's improving financial performance and cash generation over the past 18 months.

在檢視第二季財務細節之前，我想先提到我們近期完成了幾項在本季啟動的策略性財務交易，我將在此摘要說明。首先，3 月 22 日，我們宣布使用可用的短期投資與現金，償還 1 億美元的定期貸款本金。我們認為這是降低資產負債表槓桿的重要一步，並符合我們長期降低負債及相關槓桿比率的目標。我們能夠償還定期貸款本金，直接反映 MACOM 在過去 18 個月財務表現改善與現金創造能力提升。

Second, we took advantage of historically favorable conditions and entered into a convertible note arrangement, which has provided us with $450 million at an interest rate of 0.25%. The convertible notes are due in March 2026 and have a conversion premium of 40% over our March 22 closing stock price, which is a conversion price of $82.12. We issued $400 million of the convertible notes at the end of fiscal March with the additional $50 million greenshoe amount being executed in early fiscal April. We used all the net proceeds from the convert issuance to pay down our term loan principal, and there were no penalties associated with prepaying the term loans before their May 2024 due date.

第二，我們把握歷史性有利的市場條件，進行可轉換公司債安排，以 0.25% 的利率取得 4.5 億美元資金。該可轉債於 2026 年 3 月到期，轉換溢價為相較 3 月 22 日收盤股價高出 40%，亦即轉換價格為 82.12 美元。我們在 3 月會計月末發行 4 億美元可轉債，另 5,000 萬美元的 greenshoe（超額配售）額度於 4 月會計月初執行。我們將可轉債發行的全部淨收益用於償還定期貸款本金，且在其 2024 年 5 月到期日前提前償還定期貸款並無任何罰金。

With these combined actions, we reduced overall outstanding debt by $100 million. We reduced our interest rate on $450 million of debt from approximately 2.4% to 0.25%. We expect to save around $11 million in annual interest expense at current rates, and we extended the weighted average maturity date on our debt structure. I'd like to thank the Barclays banking team for their support with our execution of the convertible note transaction.

透過這些合併行動，我們將整體未償還債務降低了 1 億美元。我們也將 4.5 億美元債務的利率由約 2.4% 降至 0.25%。以目前利率計算，我們預期每年可節省約 1,100 萬美元的利息費用，並延長了我們債務結構的加權平均到期日。我也要感謝 Barclays 銀行團隊在我們執行可轉債交易上的支持。

Now on to the Q2 financials. Revenue for the second quarter was $150.6 million, up slightly versus the prior quarter. The sequential improvement in revenue was driven primarily by growth in the Industrial & Defense end market, along with modest improvement in the Data Center market, which was offset by the anticipated decline in the Telecom end market. On a geographic basis, approximately 48% of our Q2 revenue was from domestic customers, sequentially up from 43% in Q1. Revenue from international customers was 52% of our Q2 revenue.

接著談第二季財務表現。第二季營收為 1.506 億美元，較前一季小幅增加。營收的季增主要由工業與國防終端市場的成長所帶動，資料中心市場亦有溫和改善，但被電信終端市場的預期下滑所抵銷。以地區來看，第二季約 48% 的營收來自國內客戶，較第一季的 43% 連續上升；國際客戶營收占第二季營收的 52%。

As we highlighted on prior earnings calls, the semiconductor industry has seen a broad increase in demand. This is causing higher-than-normal levels of utilization within some portions of our supply chain. We see this especially at some of our external foundry partners as well as some of our assembly and test suppliers in Asia. We do not expect this temporary tightening to have a long-term impact on our ability to service customers, although in Q3, we expect to have some delayed shipments. These delayed shipments have been factored into our Q3 guidance. Our operations team has excellent relationships with our suppliers and has done an outstanding job to help ensure our goals are met.

如同我們在先前的法說會所強調，半導體產業的需求已出現廣泛增加，導致我們供應鏈部分環節的產能利用率高於正常水準。我們特別在部分外部晶圓代工夥伴，以及亞洲的一些封裝與測試供應商處看到此情況。我們不預期這種暫時性的緊縮會對我們長期服務客戶的能力造成影響，但在第三季，我們預期會有部分出貨延遲。這些延遲出貨已納入我們第三季的財測指引。我們的營運團隊與供應商維持極佳關係，並且表現出色，協助確保我們達成目標。

Adjusted gross profit in fiscal Q2 was $89.2 million or 59.2% of revenue, up 170 basis points sequentially. Our record gross margin in the quarter is a reflection of our drive toward operational excellence and continuous efficiencies in all aspects of our manufacturing and operations activities. Many of the drivers that have been contributing to gross margin expansion over the last few quarters remain in place today. These include continuous improvement activities associated with supply chain and logistics enhancements, increased manufacturing efficiencies, scrap reduction and optimizing the utilization of our assets. As I have noted in the past, we feel there will be additional opportunities for us to continue to improve our gross margins as we move forward.

第二季調整後毛利為 8,920 萬美元，占營收 59.2%，較前一季提升 170 個基點。本季創紀錄的毛利率反映我們追求卓越營運，以及在製造與營運活動各方面持續提升效率的努力。過去幾季推動毛利率擴張的多項因素目前仍然存在，包括與供應鏈與物流強化相關的持續改善活動、製造效率提升、降低報廢，以及最佳化資產利用率。如我過去所提，我們認為未來仍有更多機會持續改善毛利率。

Total adjusted operating expense was $47.3 million, consisting of R&D expense of $30 million and SG&A expense of $17.3 million. Total operating expenses were roughly flat to fiscal Q1 levels. We continue to carefully balance all of our operating expenses through the management of discretionary spending, along with investments in new product development and other growth opportunities.

調整後營業費用總額為 4,730 萬美元，其中研發費用 3,000 萬美元，SG&A（銷售、一般及行政）費用 1,730 萬美元。營業費用總額與第一季水準大致持平。我們持續透過管理可自由裁量支出，並同時投資於新產品開發及其他成長機會，審慎平衡各項營業費用。

Adjusted operating income in fiscal Q2 was $41.8 million, up from $37.8 million in fiscal Q1. Adjusted operating margin was 27.8% for fiscal Q2, sequentially up from 25.4% in Q1. As I noted, our second quarter adjusted gross margin and adjusted operating margin represent record levels of profitability for MACOM dating back to our IPO in 2012. More importantly, we expect a combination of top line growth, expanding gross margins and/or stable operating expenses to provide the opportunity for continued operating leverage over the remainder of 2021.

2021 會計年度第二季的調整後營業利益為 4,180 萬美元，高於第一季的 3,780 萬美元。第二季調整後營業利益率為 27.8%，較第一季的 25.4% 連續上升。如我所提及，我們第二季的調整後毛利率與調整後營業利益率，創下 MACOM 自 2012 年 IPO 以來的獲利能力新高。更重要的是，我們預期營收成長、毛利率擴張及／或營業費用維持穩定的組合，將在 2021 年剩餘期間提供持續營運槓桿的機會。

Depreciation for fiscal Q2 was $6 million, and adjusted EBITDA was $47.8 million. This contributed to another increase in trailing 12-month adjusted EBITDA, which came in at approximately $169 million as compared to LTM EBITDA of $148 million for fiscal Q1.

2021 會計年度第二季折舊為 600 萬美元，調整後 EBITDA 為 4,780 萬美元。這也帶動過去 12 個月（LTM）調整後 EBITDA 再度上升，約為 1.69 億美元，相較於第一季的 LTM EBITDA 1.48 億美元。

Adjusted net interest expense for fiscal Q2 was $3.8 million, down $100,000 from fiscal Q1. Our fiscal Q2 net interest expense included only minimal savings from our debt paydown and the new lower interest rate associated with the convertible notes as these transactions occurred late in Q2. Looking ahead, we expect our adjusted net interest expense to decline to around $1.3 million in Q3 and beyond based on the lower debt level and the lower coupon payment on the convert.

2021 會計年度第二季調整後淨利息費用為 380 萬美元，較第一季減少 10 萬美元。我們第二季的淨利息費用僅反映出些微的節省，來自於償還債務以及可轉換公司債票據所對應的新較低利率，因為這些交易在第二季末才完成。展望未來，基於較低的負債水位以及可轉債較低的票息支付，我們預期第三季及其後的調整後淨利息費用將下降至約 130 萬美元。

Our adjusted income tax rate in fiscal Q2 was 5%, in line with our expectations and resulted in an expense of approximately $1.9 million. Our cash tax payments were $700,000 for Q2. We expect our adjusted income tax rate to remain at 5% for at least the remainder of fiscal '21.

2021 會計年度第二季的調整後所得稅率為 5%，符合我們的預期，並產生約 190 萬美元的費用。第二季現金稅款支付為 70 萬美元。我們預期調整後所得稅率至少在 2021 會計年度剩餘期間將維持在 5%。

Fiscal Q2 adjusted net income was $36.1 million compared to $32.2 million in fiscal Q1. Adjusted earnings per fully diluted share was $0.51, utilizing a share count of 70.5 million shares, compared to $0.46 of adjusted earnings per share in fiscal Q1.

2021 會計年度第二季調整後淨利為 3,610 萬美元，相較第一季為 3,220 萬美元。以 7,050 萬股的完全稀釋股數計算，完全稀釋後每股調整後盈餘為 0.51 美元，相較第一季的每股調整後盈餘 0.46 美元。

Now moving on to the balance sheet and cash flow items. Our Q2 accounts receivable balance was $68.3 million, up from $55.2 million in Q1. As a result, days sales outstanding were 41 days. Our Q2 accounts receivable balance was up sequentially due to a larger portion of revenue occurring later in the quarter as a result of the timing of scheduled customer delivery dates and Chinese New Year. Our DSO remains in line with industry metrics. Inventories were $84.5 million at quarter end, down another $4.5 million sequentially. Inventory turns was 2.9x during the second fiscal quarter. While we recognize that there is a tightening within the semiconductor supply chain, which may cause fluctuations in our inventory balances, we remain very focused on inventory management. We continue to see opportunities to further improve our inventory metrics going forward while also balancing customer demands and market opportunities.

接著談資產負債表與現金流量項目。第二季應收帳款餘額為 6,830 萬美元，高於第一季的 5,520 萬美元。因此，應收帳款週轉天數（DSO）為 41 天。第二季應收帳款餘額較前一季增加，係因受排定客戶交貨日期的時點以及農曆新年影響，使得較大比例的營收發生在季末。我們的 DSO 仍符合產業指標。季末存貨為 8,450 萬美元，較前一季再減少 450 萬美元。第二會計季的存貨週轉率為 2.9 倍。雖然我們認知到半導體供應鏈正趨於緊縮，可能導致存貨餘額波動，但我們仍高度專注於存貨管理。我們持續看到未來進一步改善存貨指標的機會，同時也會在客戶需求與市場機會之間取得平衡。

We had healthy cash flow during fiscal Q2. Our Q2 cash flow from operations was approximately $28 million, driven by improvements in operating profit, offset somewhat by the expected increase in accounts receivable. Cash flow from operations represented around 77% of our adjusted net income. We expect cash flow trends to improve as collections increase. And directionally speaking, over time, we believe cash flow from operations should run at a comparable amount of our adjusted non-GAAP net income. Capital expenditures totaled $4.4 million for fiscal Q2. Free cash flow was $23.5 million for the second fiscal quarter.

2021 會計年度第二季我們的現金流量表現健康。第二季營運活動現金流量約為 2,800 萬美元，主要受營業獲利改善帶動，但部分被如預期增加的應收帳款所抵銷。營運活動現金流量約相當於我們調整後淨利的 77%。隨著收款增加，我們預期現金流量趨勢將改善。就方向性而言，隨時間推移，我們認為營運活動現金流量應可與我們調整後的非 GAAP 淨利大致相當。第二季資本支出合計 440 萬美元。第二會計季自由現金流為 2,350 萬美元。

As we indicated in prior quarters, we anticipate higher quarterly capital expenditures during the remainder of our fiscal year 2021 based on investments in our R&D and fab infrastructure, inclusive of the 0.14 micron GaN on Silicon Carbide AFRL program, which we discussed last quarter.

如同我們在前幾季所指出，基於對研發與晶圓廠基礎設施的投資（包含我們上季討論的 0.14 微米碳化矽基板矽上氮化鎵（GaN on Silicon Carbide）AFRL 計畫），我們預期在 2021 會計年度剩餘期間，單季資本支出將提高。

Cash, cash equivalents and short-term investments for the second fiscal quarter were $268 million, down $87 million from Q1. The $100 million we utilized to pay down the term loan was offset modestly by cash generated during the quarter. Cash generation will remain a priority for us. We expect our cash and short-term investment balances as of the end of this fiscal year to be at a comparable level to the $333 million we had on the balance sheet as of the end of fiscal 2020, even after the $100 million debt repayment.

第二會計季的現金、約當現金與短期投資為 2.68 億美元，較第一季減少 8,700 萬美元。我們用於償還定期貸款的 1 億美元，僅被本季產生的現金小幅抵銷。現金創造仍將是我們的優先事項。我們預期在本會計年度末的現金與短期投資餘額，即使在償還 1 億美元債務之後，仍將與 2020 會計年度末資產負債表上的 3.33 億美元水準相當。

The final area I will discuss in a bit more detail is our Q2 debt balance. We have provided a summary of this Q2 debt activity in the reconciliation section of our earnings release, as the accounting for these transactions can be complex.

最後一個我將稍微更詳細說明的領域，是我們第二季的債務餘額。我們已在財報新聞稿的調節（reconciliation）章節中提供第二季債務活動摘要，因為這些交易的會計處理可能相當複雜。

At the end of our December quarter, we had debt of approximately $658 million. We paid down our term loans by $100 million. In addition, based on the accounting rules currently in place, we were required to bifurcate a portion of the convertible note debt and recorded approximately $72 million as equity. The net result of these and other items for the quarter resulted in a Q2 ending debt balance of $492 million associated with our long-term debt arrangements.

在 12 月季度末，我們的債務約為 6.58 億美元。我們將定期貸款償還 1 億美元。此外，依據目前適用的會計規則，我們必須將可轉換公司債票據債務的一部分拆分（bifurcate），並將約 7,200 萬美元認列為權益。上述事項及本季其他項目的淨影響，使得第二季期末與長期債務安排相關的債務餘額為 4.92 億美元。

Our debt structure as of today consists of approximately $120 million remaining on our term loans, which mature in 2024; and $450 million, including the $50 million greenshoe of convertible notes, which mature in 2026. In addition, we have approximately $30 million of financing leases.

截至今日，我們的債務結構包括：約 1.20 億美元的定期貸款餘額，將於 2024 年到期；以及 4.50 億美元的可轉換公司債票據（包含 5,000 萬美元的超額配售選擇權（greenshoe）部分），將於 2026 年到期。此外，我們尚有約 3,000 萬美元的融資租賃。

With the improvements in trailing 12-month EBITDA, we exit the quarter with a net leverage ratio of around 2.3x and gross leverage of 3.5x. These leverage calculations include the $72 million of convertible notes classified as equity as well as the $30 million of financing leases. We believe that we remain on course for solid financial performance in fiscal 2021.

隨著過去 12 個月 EBITDA 的改善，我們在本季結束時的淨槓桿比率約為 2.3 倍，總槓桿比率為 3.5 倍。這些槓桿計算包含被分類為權益的 7,200 萬美元可轉換公司債票據，以及 3,000 萬美元的融資租賃。我們相信，我們仍有望在 2021 會計年度達成穩健的財務表現。

I will now turn the discussion back over to Steve.

我現在把討論交回給 Steve。

Thank you, Jack. MACOM expects revenue in Q3, ending July 2, 2021, to be in the range of $150 million to $154 million. Adjusted gross margin is expected to be in the range of 58% to 60%, and adjusted earnings per share is expected to be between $0.52 and $0.56 based on 71 million fully diluted shares.

謝謝你，Jack。MACOM 預期第三季（截至 2021 年 7 月 2 日）營收將介於 1.50 億至 1.54 億美元。調整後毛利率預期介於 58% 至 60%，而以 7,100 萬股完全稀釋股數計算，調整後每股盈餘預期介於 0.52 至 0.56 美元。

In Q3, we expect Telecom to be up slightly, Industrial & Defense revenues to be flat and Data Center to be down slightly. As I have noted, we maintain a long-term perspective on executing our strategy. We are confident we can continue to improve our financials and take market share in the months and years ahead.

在第三季，我們預期電信（Telecom）將小幅成長，工業與國防（Industrial & Defense）營收將持平，而資料中心（Data Center）將小幅下滑。如我所提及，我們以長期觀點來執行策略。我們有信心在未來數月與數年持續改善財務表現並提升市占率。

Before opening up the line to your questions, I would like to make a couple of final comments. First, we have been encouraged by recent proposals from the federal government to make investments in the U.S. semiconductor manufacturing industry. We are very pleased to see recognition of the vital and strategic role that semiconductors play in America's future. With over 70 years of history and 2 semiconductor fabs operating in the United States, we believe MACOM could be a model candidate to benefit from these programs, and we will actively explore opportunities for funding.

在開放各位提問之前，我想做幾點最後的補充。第一，我們對聯邦政府近期提出投資美國半導體製造產業的提案感到鼓舞。我們很高興看到半導體在美國未來所扮演的關鍵且具策略性的角色獲得重視。MACOM 擁有超過 70 年歷史，並在美國營運 2 座半導體晶圓廠，我們相信 MACOM 可能是受惠於這些計畫的典範候選者，我們也將積極探索資金補助的機會。

Second, over the last several months, we have undertaken an in-depth, company-wide review of our environmental, social and corporate governance or ESG practices with the goal of enhancing our current policies and programs to drive continuous improvement in these areas. This initiative has the support of the Board of Directors. As a first step, we have established an executive-level ESG task force to refine our policies, enhance our reporting and programs and target best practices in key areas of focus. This will be a multiyear process, and we believe these efforts will ultimately create -- help create value for our stockholders, employees and other constituencies.

第二，在過去幾個月，我們已針對公司的環境、社會與公司治理（ESG）實務進行深入的全公司檢視，目標是強化我們現有的政策與計畫，以推動這些領域的持續改善。此項倡議獲得董事會支持。作為第一步，我們已成立高階主管層級的 ESG 專案小組，以精進政策、強化揭露與計畫，並在關鍵重點領域對標最佳實務。這將是一個跨多年的流程，我們相信這些努力最終將創造——並協助為我們的股東、員工及其他利害關係人創造價值。

Finally, on a related note, I would like to highlight that last month, we announced the addition of John Ritchie as a new independent member to our Board of Directors, who serves on the Audit and Compensation Committees. John brings financial and business software and hardware and technology expertise to the Board, and we look forward to working with him as we move ahead.

最後，相關地，我想強調我們上個月宣布新增 John Ritchie 擔任董事會新的獨立董事，並在審計委員會與薪酬委員會任職。John 為董事會帶來財務以及商業軟體與硬體與科技方面的專業，我們期待在未來推進之際與他合作。

I would now like to ask our operator to take any questions.

我現在想請我們的接線員開始接受提問。

(Operator Instructions) And our first question, coming from the line of Vivek Arya with Bank of America.

（接線員指示）我們的第一個問題來自美國銀行（Bank of America）的 Vivek Arya。

Steve, on the Telecom side, if I go back to kind of the middle of last year when China was spending, you were doing something in the mid-50s million quarterly. Is that what recovery looks like when China resumes spending? Because your Telecom business is almost 1/3 off its highs. And if China does want to resume spending and put the 600,000 base stations, I assume that you'll start to get some visibility around that. So give us some color on what the visibility is in resumption of these deployments in China. And when recovery does come, should we see a return back to those kind of prior levels? Or are there other puts and takes?

Steve，關於電信端，如果我回到去年年中左右，當時中國在支出，你們單季大概做到 5,000 多萬美元的水準。當中國恢復支出時，復甦看起來就是那樣嗎？因為你們的電信業務相較高點幾乎下滑了約三分之一。如果中國確實想恢復支出並建置 60 萬座基地台，我想你們應該會開始對此有一些能見度。請你談談在中國恢復這些部署方面的能見度如何。當復甦到來時，我們是否應該看到回到先前那種水準？還是有其他利多與利空因素？

Thank you, Vivek, for the question. So yes, we do think that we will achieve those prior highs, and we actually believe we will exceed those because for this cycle, we are in a stronger product position. A lot of the growth we saw last year was fronthaul-related with high-performance analog chips. And on the next cycle, which will start sometime later this year or even into our next fiscal year, we would expect to have additional RF components qualified as well as lasers perhaps qualified in certain applications. So generally speaking, we would expect to see new highs achieved in the Telecom end market based on layering on those different product groups that I just mentioned.

謝謝你，Vivek，提出這個問題。是的，我們確實認為我們會達到先前的高點，而且我們其實相信會超越，因為在這一輪週期中，我們的產品競爭地位更強。去年我們看到的許多成長與前傳（fronthaul）相關，主要是高效能類比晶片。而在下一輪週期（可能在今年稍晚或甚至到我們下一個會計年度才開始），我們預期會有更多 RF 元件完成認證，另外在某些應用中雷射也可能完成認證。整體而言，基於我剛提到的不同產品群的疊加，我們預期電信終端市場將創下新的高點。

In terms of the timing, as I pointed out in the script, it's very difficult for us to estimate when that new cycle will begin. So for that reason, we have not really included significant 5G contribution in this fiscal quarter. And as we look into Q4, we're also -- we'll certainly take a conservative view of that, unless something materially changes. The good news is it moves a lot of that growth revenue into next year, and it could really set us up for a very strong fiscal year '22. And I will also add that these delays that we're seeing in China at some level are actually working to our advantage. As we complete the qualifications of some of our new product lines, we have more time to engage customers.

就時程而言，如同我在講稿中指出的，我們很難估計新一輪週期何時開始。因此，我們在本會計季度的預測中並未納入顯著的 5G 貢獻。展望 Q4，我們也會——除非有重大變化——採取保守看法。好消息是，這會把相當一部分成長營收移到明年，並可能讓我們在 2022 會計年度表現非常強勁。我也要補充，我們在中國看到的這些延遲，在某種程度上其實對我們有利。當我們完成一些新產品線的認證時，我們也有更多時間與客戶互動。

One final point on 5G, we are not just focused on the China market. This is a global market, and we expect in the next year to 2 years to be a significant contributor to European and U.S. deployments.

關於 5G 的最後一點，我們不只聚焦中國市場。這是一個全球市場，我們預期在未來 1 到 2 年，將對歐洲與美國的部署帶來顯著貢獻。

Got it. And then on the datacom side, I know that's a segment where you have had quite a bit of movement in restructuring and so forth. When should we start to see that business really start to take advantage of all the investments that the hyperscalers are making? When do you see that segment start to really grow in line with some of the other semiconductor companies that are benefiting from cloud investments?

了解。接著在資料通訊（datacom）方面，我知道這個區塊你們在重整、重組等方面有不少變動。你們何時會開始看到這個業務真正受惠於超大規模業者（hyperscalers）正在進行的各項投資？你何時看到這個區塊開始成長，並與其他受惠於雲端投資的半導體公司更一致？

Yes. So as you know, the Data Center segment is one of our smaller end market segments, and it's really a mix of some legacy product lines that I highlighted on the call earlier as well as generally analog solutions for short-reach applications. And we still remain a dominant supplier into that market. Those are primarily CWDM4, short-reach, 100G applications. We expect that business over the long term to be strong. We are seeing in this moment, I would say, a level run rate or flat production levels.

是的。如你所知，資料中心（Data Center）是我們較小的終端市場之一，它其實是我先前在電話會議中提到的一些既有產品線，以及用於短距離應用的類比解決方案的組合。我們仍然是該市場的主要供應商。那些主要是 CWDM4、短距離、100G 應用。長期來看，我們預期這項業務會很強勁。就目前這個時間點，我會說產出水準大致持平，或維持在一個固定的運行率（run rate）。

And so we think in the near term, the growth will come actually from our new 400G products, which include 4-channel 56 gigabaud drivers, 4-channel linear TIAs. And these products can be used with other companies' DSPs to service the 400G market. And then we are working on other product categories for the data center, including active copper cable, analog solutions and equalizer solutions. So I would set the expectation of consistent growth but not hyper-growth, let's say. Or we have a limited product set for that end market. And over the long term, we would expect both Industrial & Defense and Telecom to outgrow Data Center.

因此我們認為短期內的成長其實會來自我們新的 400G 產品，包括 4 通道 56 gigabaud 驅動器、4 通道線性 TIA。這些產品可以搭配其他公司的 DSP 來服務 400G 市場。此外，我們也在開發其他資料中心產品類別，包括主動式銅纜（active copper cable）、類比解決方案與等化器（equalizer）解決方案。所以我會把預期設定為穩定成長，但不是那種爆發式成長。或者說，我們在該終端市場的產品組合仍相對有限。長期而言，我們預期工業與國防（Industrial & Defense）以及電信（Telecom）的成長會超過資料中心。

And our next question coming from the line of Tom O'Malley with Barclays.

我們的下一個問題來自 Barclays 的 Tom O'Malley。

Jack, I think my first one centers around some of your commentary about some of the pushouts in orders. Could you just talk about where you're seeing the tightness in the supply chain? Is that on the supplier side? Or is that really on back end and test? And could you quantify the size of what got pushed out? And will you be seeing that revenue kind of come in, in the fourth quarter?

Jack，我第一個問題想聚焦在你對部分訂單延後（pushouts）的評論。你能談談你們在哪些地方看到供應鏈吃緊嗎？是在供應商端？還是主要在後段封裝與測試（back end and test）？你能量化一下被延後的規模嗎？而這些營收會在第四季回補進來嗎？

Thanks, Tom. Yes, as I had highlighted, we are experiencing some of those supplier tightness items that I did refer to, and some of that's coming in from a substrate standpoint. But there is some assembly and test items that are out there. So our operations team has been doing a fantastic job making sure we're managing through this. So it's a bit of business as usual in that our operations team is generally working through these issues in the ordinary course but paying special attention to it now.

謝謝，Tom。是的，如我先前提到的，我們確實遇到一些供應商端的緊缺情況，其中一部分來自基板（substrate）方面。但也有一些封裝與測試相關的項目。因此我們的營運團隊做得非常出色，確保我們能妥善因應並管理這些狀況。整體而言，這有點像是日常營運的一部分：我們的營運團隊通常會在正常流程中處理這些問題，只是現在會特別關注。

In terms of quantification, it may be upwards of about $5 million that is pushed out, I would say. But we are working to make sure we manage that. So it's -- and that is factored into our guide.

就量化而言，我認為被延後的金額可能高達約 500 萬美元。但我們正在努力確保能妥善管理。因此——而且這也已反映在我們的財測指引中。

Great. That's really helpful. And then my second one is really for Steve. Steve, you mentioned some of the moving pieces of the Data Center. You mentioned the 400G products doing a bit better, and then you made a comment about some weaker 100G. You guys prior had kind of expected really strong fiscal year '21 growth of almost 20%. Can you talk about what's happened since the last call in the 100G market that's made you kind of a bit more cautious there?

很好，這非常有幫助。第二個問題是給 Steve 的。Steve，你提到資料中心的一些變動因素。你提到 400G 產品表現好一些，然後你也提到 100G 有些疲弱。你們先前原本預期 2021 會計年度會有接近 20% 的強勁成長。你能談談自上次電話會議以來，100G 市場發生了什麼，讓你們在那邊變得更保守一些嗎？

Yes. We've seen our lead customer level off their production run rates. And so that's sort of a directional change for us. We still do think that the Data Center will be double-digit growth year-over-year. So -- but the primary driver for our change is that the run rates have slowed a bit. And although as we are gaining market share in international markets, especially for 25G and 100G applications, those wins have not yet offset some of the -- what we're seeing on the domestic side.

是的。我們看到我們的主要客戶其生產運行率（run rates）趨於持平，因此對我們而言這是一個方向性的變化。我們仍然認為資料中心年對年會是雙位數成長。不過——我們調整看法的主要原因是運行率放緩了一些。雖然我們在國際市場（特別是 25G 與 100G 應用）正在取得市占，但這些勝出案目前尚未抵銷我們在國內市場看到的一些情況。

And our next question coming from the line of Harsh Kumar with Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Harsh Kumar。

First of all, congratulations, very impressive results among supply tightness. So Steve or Jack, your gross margin was super impressive. Is this the new base that we should be working off of as we look at your business going forward? That's my question number one, and I have another one.

首先，恭喜你們，在供應吃緊的情況下仍交出非常亮眼的成果。Steve 或 Jack，你們的毛利率非常令人印象深刻。展望未來，我們是否應該把這視為新的基準水準來看待你們的業務？這是我的第一個問題，我還有另一個。

So maybe I'll make a few comments, and then Jack can follow up on that question. So we continue to make improvements in the execution of our business. And as Jack highlighted, a lot of that work is being done on the operational side. We are also adding higher-value products to the portfolio. And that will, over the long term, support improvements in gross margin. For example, we talked about the new product technology for high-power and high-voltage capacitors. We're calling them KV CAPS. And this is a really unique type of a product line where we can go to market with something very different and command premium pricing. And so this is the type of thing that will ultimately allow us to breach the 60% gross margin levels and then grow from there.

我先補充幾點，然後 Jack 可以再接著回答這個問題。我們持續在業務執行面做改善。如 Jack 所提到，其中很多工作是在營運端完成的。我們也在產品組合中加入更高價值的產品，長期而言將支撐毛利率的提升。舉例來說，我們談到用於高功率與高電壓電容的新產品技術，我們稱之為 KV CAPS。這是一條非常獨特的產品線，我們能以非常不同的產品切入市場並取得溢價定價。因此，這類產品最終將讓我們突破 60% 的毛利率水準，並在此基礎上持續成長。

So we'd like to think that we can continuously do better. As you know, as you continue to improve the gross margins, it gets harder. But based on what we're seeing, based on mix, based on the portfolio getting stronger from a technology point of view, we think we can continue to improve our performance.

因此我們希望能持續做得更好。如你所知，毛利率越往上提升就越困難。但根據我們所看到的情況，基於產品組合（mix），以及產品組合在技術面變得更強，我們認為可以持續改善我們的表現。

Jack, do you want to add to that?

Jack，你要補充嗎？

I think you did a great job covering it. We are very pleased with the improvement that we've seen over the past quarter, going up 170 basis points. As Steve noted, it does become a bit more challenging. We do take a longer-term view to many of the improvement initiatives that we have and to some extent, come back around to some of the same initiatives to see if we can further improve them. But it does become a bit more challenging as we go forward.

我認為你已經把重點講得很完整了。我們對過去一季看到的改善非常滿意，毛利率提升了 170 個基點。如 Steve 所說，接下來確實會更具挑戰。我們對許多改善計畫採取較長期的觀點，某種程度上也會回頭檢視一些相同的計畫，看看是否還能進一步改善。但隨著往前推進，確實會變得更具挑戰。

That's very helpful. And for my follow-up, maybe a question for Steve. Steve, you touched upon this with what you're displaying at OFC and the International Symposium for -- Microwave Symposium. But could you maybe give us an update on the timing of your laser opportunity for commercialization, also silicon photonics, when do you actually expect revenues?

這非常有幫助。接著我的追問，可能想請教 Steve。Steve，你在 OFC 以及國際研討會——微波研討會上展示的內容已經提到一些。但你能否更新一下你們雷射商機商業化的時程，另外還有矽光子，你們實際上預期何時開始認列營收？

And then secondly, as a part of that question, when I look at the laser industry, I see guys in the laser business having sort of subpar margins. You're a sort of a premium company with close to, call it, high 50s gross margin. How does that product fit into your grand plan for gross margin expansion?

第二點，作為該問題的一部分，當我觀察雷射產業時，我看到做雷射的公司毛利率似乎偏低。你們是一家偏高端的公司，毛利率接近、可說是 50% 後段的水準。這項產品如何融入你們擴大毛利率的整體規劃？

So regarding the timing of revenue for the laser portfolio, and I suspect you're referring specifically to 25G FP and DFB lasers because those are the newest part of the portfolio. And while -- because as you know, we still are a main supplier to the GPON market with some lower data rate lasers. We announced the new platform for our DFB product line back in September of 2019. And since then, we've been working with customers to introduce the product, get them familiar with the performance and, in parallel with that, running a qualification, which is about a 6-month process.

關於雷射產品組合的營收時點，我猜你特別指的是 25G FP 與 DFB 雷射，因為那是產品組合中最新的部分。同時——因為如你所知，我們仍是 GPON 市場的主要供應商，提供一些較低資料速率的雷射。我們在 2019 年 9 月宣布了 DFB 產品線的新平台。自那之後，我們一直與客戶合作導入產品，讓他們熟悉其效能，並且同步進行認證（qualification），這大約是一個 6 個月的流程。

As I highlighted in my script, we are just finishing up that long-term reliability test. It will be done pretty much at the beginning of May. And so we would expect laser revenue from these new product categories as early as the Q4 time period but most likely Q1 of our FY '22, in that time frame. And just to level set, we believe it will start at a low, modest level, and it will grow over time. I'll highlight that we do have some significant advantages when we go to market. As I've talked about before, we've created a platform which allows us to generate multiple wavelengths relatively easily due to the platform and the design.

如我在講稿中強調的，我們正要完成那項長期可靠度測試。它大概會在 5 月初完成。因此，我們預期這些新產品類別的雷射營收最早可在第 4 季期間出現，但更可能是在我們 2022 財年的第 1 季左右，在那個時間範圍內。為了先校準預期，我們認為一開始會是較低、溫和的水準，並會隨時間成長。我也要強調，我們在上市時確實有一些顯著優勢。正如我之前談過的，我們建立了一個平台，因為平台與設計的關係，讓我們能相對容易地產生多種波長。

And your question about other companies having lower gross margins with their laser portfolios, so I'd just like to highlight that we are, I believe, the only company today in the industry that is producing 4-inch indium phosphide lasers. And the way we manufacture these lasers allows us to do on-wafer optical testing without cleaving the wafers and doing it with, let's say, a more manual and a more costly test method. So we believe we have a cost advantage because of the size of the wafer, and we have a cost advantage because of the methodology we employ on test. And I'll add to that, we are going after higher data rates. And when we enter the -- specifically the data center market, which we hope to enter next year, next fiscal year, we will do so with a premium product that has high reliability, that can scale quickly. And we're confident we can be successful there.

至於你提到其他公司雷射產品組合的毛利率較低，我想強調的是，我相信我們是目前業界唯一一家在生產 4 吋磷化銦（InP）雷射的公司。我們製造這些雷射的方式，使我們能在晶圓上進行光學測試，而不需要先把晶圓切割（cleaving），也不必採用更偏手動、成本更高的測試方法。因此，我們認為我們在成本上有優勢：一方面來自晶圓尺寸，另一方面來自我們採用的測試方法。此外，我們也在追求更高資料速率。當我們進入——特別是資料中心市場（我們希望在明年、也就是下一個會計年度進入）時，我們將以高端產品切入，具備高可靠度、可快速擴產。我們有信心能在那裡取得成功。

Now with that said, it is a competitive market. We believe that the laser portfolio will be accretive to our existing margins. So we'll have to wait and see how that works out, but that's our current thinking.

不過話說回來，這是一個競爭激烈的市場。我們認為雷射產品組合將對我們既有毛利率具有增益（accretive）。因此還需要觀察實際結果，但這是我們目前的看法。

The other thing you asked about, of course, was silicon photonics. So we continue to do design work with that portion of the portfolio. Our primary focus is 400G DR4 and DR1 PICs. These are the discrete silicon photonic devices without the lasers attached. And you will not see any revenue from silicon photonics this year, this fiscal year, for MACOM. And it's unclear as to the timing as to whether it will be first half or second half of next year. I can tell you that we've had a few challenges in the last 2 to 3 months regarding process control at one of our key suppliers on this technology, and that is delaying a little bit some of the work that we're doing there. But just for modeling purposes, you should expect silicon photonic revenues some time in FY '22, most likely in the back half.

你問到的另一件事，當然是矽光子。因此我們持續在該產品組合部分進行設計工作。我們的主要重點是 400G DR4 與 DR1 的 PIC。這些是未搭載雷射的離散式矽光子元件。今年、也就是 MACOM 的本會計年度，你不會看到任何矽光子營收。至於明年的時點會落在上半年或下半年，目前仍不明朗。我可以告訴你，過去 2 到 3 個月，我們在這項技術的一家關鍵供應商那裡，遇到了一些製程控制方面的挑戰，這使得我們在那邊進行的一些工作略有延遲。但就建模而言，你應該預期矽光子營收會在 2022 會計年度的某個時間點出現，最可能是在下半年。

And our next question coming from the line of Quinn Bolton with Needham & Company.

下一個問題來自 Needham & Company 的 Quinn Bolton。

Congratulations on the record margins. I wanted to ask, Steve, you mentioned in the Data Center category, $15 million of products going end of life next year. Can you give us a little bit more detail on what those legacy products are? And as you look at the Data Center business with sort of a flattening outlook for 100-gig CWDM4, do you think that, that business can continue to grow in fiscal '22 given the headwind from those legacy products?

恭喜創下紀錄的毛利率。我想問一下，Steve，你提到資料中心類別中，明年將有 1,500 萬美元的產品走到生命週期終點（end of life）。你能否更詳細說明那些既有（legacy）產品是什麼？另外，當你看資料中心業務、在 100G CWDM4 的展望趨於持平的情況下，你認為在這些既有產品帶來逆風之下，該業務在 2022 會計年度仍能持續成長嗎？

Thank you for the question. So the $15 million decline would -- I guess you could organize that in sort of 3 different product areas. The first is we have integrated OTN devices that service 10G and 40G applications, and these are used basically in transport network core layers. And these products were introduced by AMCC, prior to MACOM acquiring AMCC. They were introduced in the 2009 and 2012 time frame. And as these networks have moved to higher data rates, the need for the 10G and the 40G product is falling off. So that would be the first category that we would expect to see the decline in.

謝謝你的問題。這 1,500 萬美元的下滑——我想可以把它歸納成大約 3 個不同的產品領域。第一個是我們有整合式 OTN 元件，服務 10G 與 40G 應用，基本上用在傳輸網路的核心層。這些產品是由 AMCC 推出的，在 MACOM 收購 AMCC 之前就已存在；它們大約是在 2009 年與 2012 年那段期間導入。隨著這些網路升級到更高資料速率，對 10G 與 40G 產品的需求正在下降。因此，這會是我們預期看到下滑的第一個類別。

The second is we have some older Ethernet PHY products in production. These are generally used in enterprise switches that operate at 10G. These products were introduced in the 2006 to 2007 time frame. And again, we think that next year will most likely be the last year that we'll see revenues on those products.

第二個是我們仍有一些較舊的乙太網路 PHY 產品在量產。這些通常用在運作於 10G 的企業交換器。這些產品大約是在 2006 到 2007 年那段期間導入。同樣地，我們認為明年很可能會是我們在這些產品上看到營收的最後一年。

And then the third is we have a category we call power PC. This is at least a 10-year-old product line that we actually end of life-d over a year ago, mainly because the process was going obsolete. And this -- these are basically general-purpose processors that would be used in communication systems, defense systems, in some cases, medical systems. And the industry has moved really away from these type of processors more to ARM processors. So we believe that, that product set will also ramp down next year. And we highlight this today because recently, MACOM's management went through a review of our fiscal year '22 projections, and these items came up as notable declines. And we wanted to put that information out there and share it with everybody.

第三個是我們稱為 power PC 的一個類別。這至少是一條 10 年以上的產品線，我們其實在一年多前就已將其終止（end of life），主要是因為製程即將淘汰。而這些——基本上是通用型處理器，會用在通訊系統、國防系統，在某些情況下也用在醫療系統。產業已經逐漸遠離這類處理器，轉向 ARM 處理器。因此我們認為，這組產品明年也會進一步下滑。我們今天特別提出，是因為近期 MACOM 管理團隊在檢視我們 2022 會計年度的預測時，這些項目被視為顯著的下滑來源。我們希望把這些資訊公開並與大家分享。

In terms of your question about 100G CWDM4 growing next year, I think the short answer is yes, we believe it will grow. Even though our lead customer today is leveling off their productions, we continue to win market share with the products that we're launching today. And I'll highlight, by the way, as I talked about for one of the OFC demos, where we're demoing a 200G and 400G chipset, which is meeting the Open Eye analog protocol. This is the first time we're putting out, for this data rate, a VCSEL and driver combo chip -- a VCSEL driver and CDR combo chip as well as a TIA and CDR driver combo chip. And that's a first. So while we have had limited success at 200G, I can tell you that our combo chips, again, the VCSEL driver and CDR and the TIA and CDR, just to be clear, those are new products to the market. And we think that we will be well received with those products.

至於你問到 100G CWDM4 明年是否會成長，我想簡短的答案是會，我們相信它會成長。即使我們目前的主要客戶正逐步趨於平穩，我們仍持續透過今天推出的產品贏得市占。我也要順帶強調，正如我在其中一個 OFC 展示中提到的，我們正在展示一套 200G 與 400G 晶片組，符合 Open Eye 類比協定。這是我們第一次在這個資料速率上推出 VCSEL 與驅動器的組合晶片——同時也推出 VCSEL 驅動器與 CDR 的組合晶片，以及 TIA 與 CDR 驅動器的組合晶片。這是第一次。也就是說，雖然我們在 200G 的成功有限，但我可以告訴你，我們的組合晶片——再次說明，VCSEL 驅動器與 CDR，以及 TIA 與 CDR——都是市場上的新產品。我們認為這些產品會獲得良好回響。

In terms of the sort of our core CWDM4 business, we are, as I said, continuing to push new versions of existing designs, whether we're going from packaged devices to bumped devices and shrinking designs down to make sure that we are fielding the most competitive solution. And we're doing a lot of great work there. So we are still all in on CWDM4 over the next few years. We think the volumes generally speaking will continue to grow.

就我們核心的 CWDM4 業務而言，如我所說，我們持續推進既有設計的新版本，不論是從封裝元件轉向凸塊（bumped）元件，或是縮小設計尺寸，以確保我們能提供最具競爭力的解決方案。我們在這方面做了很多很好的工作。因此，未來幾年我們仍會全力投入 CWDM4。我們認為整體而言，出貨量將持續成長。

Great. And then my follow-up, Steve, is the new KV CAPS capability. How long will that take to sort of sample and qualify at customers? When would you expect to see ramp from the new KV CAP product line?

很好。接著我的追問，Steve，是關於新的 KV CAPS 能力。這大概需要多久才能在客戶端送樣並完成認證？你預期新的 KV CAP 產品線何時會開始放量成長？

So the good news here is the design-in process for the capacitor should be relatively quick. And we have a very large built-in customer base, right? So we have thousands of customers that today buy our high-voltage diodes. They buy some of our high-power amplifiers, and we know they buy capacitors. We were talking to one company that's in the medical industry, and they're purchasing over $20 million of high-voltage capacitors a year. And that's just one company. So our sales force is being wound up right now to bring these products to market. We believe we have a lot of existing accounts that will be interested in the product. And so we would expect some modest contributions starting next fiscal year. Of course, there's a design cycle that needs to take place. We'll offer these as bare die, as packaged parts as well as screened for military and space.

所以這裡的好消息是，這款電容的 design-in（導入設計）流程應該相對快速。而且我們擁有非常龐大的既有客戶基礎，對吧？我們目前有數千家客戶在購買我們的高壓二極體。他們也購買我們部分的高功率放大器，而且我們知道他們也在買電容。我們曾與一家醫療產業的公司交流，他們每年採購超過 2,000 萬美元的高壓電容。而那只是一家公司。所以我們的銷售團隊目前正在加速整備，把這些產品推向市場。我們相信有很多既有客戶會對這項產品感興趣。因此我們預期從下一個會計年度開始會有一些溫和的貢獻。當然，仍需要經歷一個設計週期。我們將提供裸晶（bare die）、封裝元件（packaged parts），以及通過軍用與太空等級篩選（screened for military and space）的版本。

So it's a great product line. We believe it should be relatively easy to sell, given it's so unique. Most capacitors that are at the 1,000-volt level and above are typically ceramic capacitors, which are larger and arguably less reliable, or they're large packaged capacitors using slightly different technologies. So what's unique here is achieving really 1,000-volt operation at the chip level, and that really speaks to the technology that we have at the Lowell facility here in Massachusetts and our ability to do, I'll say, complex etching and trenching of vias to allow us to achieve these voltages.

所以這是一條很棒的產品線。我們相信它應該相對容易銷售，因為它非常獨特。大多數在 1,000 伏等級及以上的電容通常是陶瓷電容，體積更大且可說可靠度較低；或者是採用略有不同技術的大型封裝電容。這裡的獨特之處在於，真正能在晶片層級達成 1,000 伏運作，這也凸顯了我們在麻薩諸塞州 Lowell 廠區所具備的技術，以及我們進行我稱之為複雜蝕刻（etching）與通孔深槽加工（trenching of vias）的能力，讓我們能達到這些電壓。

So modest contribution next year. The team is excited about the launch, and we'll have to wait and see ultimately what generate -- what revenue we generate next year. But it -- certainly, it will be a fast selling cycle.

所以明年會有溫和的貢獻。團隊對這次上市感到興奮，而我們最終還得觀察——明年我們會產生多少——我們會產生多少營收。但它——可以肯定的是，銷售週期會很快。

Our next question coming from the line of C.J. Muse with Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I guess a little bit of a follow-up to the last question, a question for you, Steve, I guess 2-part. On the industrial side, can you speak to the sustainability of the strength that you're seeing into September and beyond? And as part of that, can you update us on where you stand on the cross-selling aspect of bringing incremental, I guess, tools to the portfolio and driving incremental growth? Would love to get an update there.

我想稍微延續上一題，Steve，我有個問題，算是兩個部分。在工業端，你能談談你們看到的強勁動能在 9 月以及之後的可持續性嗎？另外作為其中一部分，你能更新一下你們在交叉銷售（cross-selling）方面的進展嗎？也就是把新增的——我想是——工具納入產品組合並帶動額外成長的那一塊。很希望聽到最新狀況。

Sure. So the I&D, as everybody knows, has really been range-bound in revenue over the last 3 to 4 years, between $40 million and $50 million. And what you've seen here in the last few quarters is some significant growth. Now we're above $70 million. A lot of that is being driven by the things I talked about on the -- in the script, including cross-selling, including winning market share. I've mentioned the pallet that we recently won, a multi-hundred watt power amplifier for a radar system. And so whether the -- certainly, having sequential growth of 17%, I would argue, that's probably not sustainable, and we wouldn't -- don't expect that, of course. But I think over the long term, you will start to see that part of our business grow. It's -- we have a very diverse customer base. It's not only defense. It's also industrial. We include automotive in industrial. And recently, we've seen an uptick in our automotive business, in our sensor business.

當然。I&D（工業與國防）如大家所知，在過去 3 到 4 年的營收其實一直在區間內波動，大約在 4,000 萬到 5,000 萬美元之間。而你們在最近幾個季度看到的是相當顯著的成長。現在我們已經超過 7,000 萬美元。其中很大一部分是由我在——講稿中提到的因素所驅動，包括交叉銷售、包括贏得市占。我提過我們最近拿下的那個「pallet」（專案/平台），是一款用於雷達系統的數百瓦級功率放大器。因此，至於——連續成長 17% 當然我會說可能不具可持續性，我們也——當然不預期會一直如此。但我認為從長期來看，你會開始看到我們這部分業務成長。它——我們的客戶基礎非常多元。不僅是國防，也包含工業。我們把汽車也歸在工業裡。最近我們也看到汽車業務、感測器業務有所回升。

In terms of the cross-selling, that work continues. And I can tell you, we're starting to see requirements for RF over fiber. We're starting to introduce our optical design capability to defense contractors for the first time. And we're bringing more high-power, interesting products to the defense industry. And we're getting a lot of accolades and a lot -- a very warm welcome there. So the cross-selling continues.

就交叉銷售而言，這項工作仍在持續。我可以告訴你，我們開始看到對 RF over fiber（光纖射頻傳輸）的需求。我們也開始第一次把我們的光學設計能力介紹給國防承包商。我們正把更多高功率、具吸引力的產品帶進國防產業，而且我們獲得很多讚譽，也受到非常熱烈的歡迎。所以交叉銷售會持續推進。

And by the way, it's not just optical into defense. It's also analog and mixed signal into industrial markets. Our HPA or high-performance analog team, which has historically been focused on Telecom, is now doing custom analog designs for defense contractors and industrial companies, whether they're driver circuits, whether they're complex switching networks or regulators. So the team is fully embracing the concept of diversifying their businesses and their revenue streams.

順帶一提，這不只是把光學導入國防。同時也把類比與混合訊號導入工業市場。我們的 HPA（高效能類比）團隊過去主要聚焦在電信，現在也在為國防承包商與工業公司做客製化類比設計，不論是驅動電路、複雜切換網路（switching networks）或穩壓器（regulators）。因此團隊正全面擁抱分散其業務與營收來源的概念。

So that work will continue. From -- generally speaking, we do have a long-term view at our business. And so some of these things will take time to turn into revenue. But I think we're doing all the right things.

所以這項工作會持續。從——一般而言，我們對業務有長期的觀點。因此其中一些事情需要時間才能轉化為營收。但我認為我們正在做所有正確的事情。

Very helpful. And then, Jack, a follow-up to the supply constraint question earlier from Tommy. You talked about $5 million pushout from June. Do you expect the supply constraints to be fixed into the second half of the year? Or is that an ongoing headwind that we should be thinking about through the calendar year?

非常有幫助。接著，Jack，我想追問先前 Tommy 提到的供應受限問題。你提到有 500 萬美元從 6 月延後（pushout）。你預期供應限制在下半年會被解決嗎？還是這會是我們在整個曆年都需要考量的持續性逆風？

Yes. I think it's something that we're paying close attention to. And at this stage, we kind of view it as a onetime item that we're going to be working through. But we will continue to monitor as we go forward.

是的。我認為這是我們正密切關注的事情。以目前階段來看，我們有點把它視為一次性項目，我們會把它消化處理。但我們也會在後續持續監控。

And our next question coming from the line of Tore Svanberg with Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Yes. Congrats on the record margins. I had 2 clarification questions. First of all, Steve, when you talked about 5G China, were you suggesting that there's been delays? Or are you suggesting there's just very low visibility as when those deployments are going to start or restart?

是的。恭喜創下紀錄的毛利率。我有兩個釐清問題。首先，Steve，當你談到中國 5G 時，你是在暗示出現延遲嗎？還是你是在說對於這些部署何時會開始或重新開始，能見度非常低？

So we've been expecting a new round of tenders to emerge in -- basically, we -- 6 months ago, we were expecting the new tenders to emerge in the April time frame, and that hasn't happened. And now there's talk about the China operators starting sort of a new cycle of bids possibly in the June time frame, in and around the World Telecom Day event. So we are -- our eyes are on the new tenders.

所以我們一直在期待新一輪的招標出現——基本上，6 個月前我們原本預期新招標會在 4 月左右出現，但並沒有發生。現在則有說法指出，中國的營運商可能會在 6 月左右、在世界電信日活動前後，開始新一輪的投標週期。所以我們——我們正密切關注新的招標。

Now if we look at the number of 5G base stations deployed in calendar Q1 of '21, it was about 48,000 base stations. So there still continues to be 5G deployments today, but those deployments are based on last year's tenders and last year's contracts. So we're focused on the new tender cycle. And from our point of view, that event hasn't started yet.

如果我們看 2021 年曆年第一季部署的 5G 基站數量，大約是 48,000 座基站。所以目前仍持續有 5G 部署，但那些部署是基於去年的招標與去年的合約。因此我們聚焦在新的招標週期。從我們的角度來看，那個事件還沒有開始。

And then on the other one, which is a little bit more longer term, so you talked about how, in Telecom, obviously, you're going to have more opportunities, right, given new products. Could you maybe talk about that in Data Center, too? Because there's a lot of puts and takes here. But it does sound like in aggregate, especially with the lasers being qualified with Data Center, that over time, you would have more opportunities in Data Center as well, even though it's the smaller business unit.

另外一個問題比較偏長期。你提到在電信領域，顯然隨著新產品會有更多機會。你能不能也談談資料中心（Data Center）這邊？因為這裡有很多利多與利空交錯。但聽起來整體而言，特別是雷射正在通過資料中心的認證（qualified），隨著時間推進，你在資料中心也會有更多機會，即使那是較小的事業單位。

Well, that's right. And I didn't mean to sort of underserve our focus on the Data Center, of course. So the growth drivers for us are really organized into different product sets. So of course, we have the 100G analog solutions, which are mostly today CWDM4, NRZ-type applications. Then you layer on top of that 200G and 400G analog solutions for PAM4, and I talked about some of the new combo chips that we've launched for that. You have 400G EML drivers and 400G linear TIAs, and these would be for DR4-type applications. We have, as you know, a PAM4 DSP in production today, it's 100G PAM4 DSP, that started production about a quarter ago, maybe 2 quarters ago. And those are all of our existing products today running in production. And to the extent that we can win market share, that -- those base product lines will grow, and that is our expectation.

嗯，沒錯。我當然不是要在資料中心的重點上有所忽略。所以我們的成長驅動因素其實是依不同產品組合來組織的。當然，我們有 100G 類比解決方案，目前主要是 CWDM4、NRZ 類型的應用。接著在此之上，你會再疊加 200G 與 400G 的 PAM4 類比解決方案，我也談到我們為此推出的一些新的 combo 晶片。我們有 400G EML 驅動器與 400G 線性 TIA，這些會用於 DR4 類型的應用。如你所知，我們目前已有一顆 PAM4 DSP 在量產，是 100G PAM4 DSP，大約在一個季度前開始量產，或許是兩個季度前。這些都是我們現有、正在量產運行的產品。而只要我們能贏得市占——那些基礎產品線就會成長，這也是我們的預期。

When you add on top of that some of the new technologies, you would add, of course, the lasers, and we plan on targeting the Data Center with our laser technology at the beginning of our next fiscal year. Of course, you can add photodetectors as well. As the data rates go higher, we have a unique technology coming from our Ann Arbor fab for very high-speed PIN detectors, which would be used inside the data center. And then we have new technologies that we're developing, including active copper cable, which are allowing us to not only service the AOC market but also the copper market. And we have some very exciting technology there. And then sort of last and maybe furthest out is the silicon photonics that I talked about earlier, where we're focusing on first 400G applications.

在此之上再加入一些新技術，當然就會加入雷射，我們計畫在下一個會計年度開始時，以我們的雷射技術鎖定資料中心市場。當然也可以加入光偵測器（photodetectors）。隨著資料速率提高，我們在 Ann Arbor 晶圓廠有一項獨特技術，可用於超高速 PIN 偵測器，將會用在資料中心內部。接著我們也在開發新技術，包括主動式銅纜（active copper cable），讓我們不僅能服務 AOC 市場，也能服務銅纜市場。我們在那裡有一些非常令人振奮的技術。最後——也許是最遠期的——是我先前提到的矽光子（silicon photonics），我們目前首先聚焦在 400G 應用。

So we do have a very large suite, and any one of those product areas could drive significant growth for us. Of course, we're at a run rate right now of mid-$30 million run rate. So certainly, one laser design win could be millions and millions of dollars inside the Data Center. And so we're very focused on making sure that all of those different product lines that I talked about will be successful.

因此，我們確實擁有非常龐大的產品組合，而其中任何一個產品領域都可能為我們帶來顯著成長。當然，我們目前的年化營收運行水準約在3,000多萬美元的中段。因此，單一雷射設計導入（design win）在資料中心內部就可能帶來數百萬、甚至數千萬美元的收入。所以我們非常專注於確保我剛才提到的所有不同產品線都能成功。

And our next question coming from the line of Karl Ackerman with Cowen.

下一個問題來自 Cowen 的 Karl Ackerman。

Yes. Two questions, if I may. First one is more of a housekeeping question, but -- which is on gross margins. I understand there are rising substrate and shipping costs, as evidenced by many of your peers. So I appreciate if you could walk through what supports your systematic improvement in gross margins for the June quarter despite flattish revenue, in particular, such as new product mix versus price. And I have a follow-up.

是的。如果可以的話我有兩個問題。第一個比較偏例行性問題，但——是關於毛利率。我理解基板與運輸成本正在上升，許多同業也都有反映。因此，若您能說明在6月季度營收大致持平的情況下，是什麼支撐你們毛利率仍能系統性改善，特別是例如新產品組合相較於價格等因素，我將不勝感激。我後面還有追問。

Sure. Just maybe, again, I'll try to help answer that, and then Jack can step in. So a vast majority of the improvements are coming from operational execution, yield improvement, focusing on bringing out costs along our manufacturing production lines. And that is -- has been and will continue to be a big effort. And we still believe there's ample opportunity to improve that. And then second, there's a mix component, depending on the product lines, of course, and depending on the different end markets.

好的。也許我再試著協助回答，然後 Jack 可以補充。改善的絕大部分來自營運執行，包括良率提升、以及專注於在製造生產線上降低成本。這一直是、也將持續是一項重大工作。我們仍然相信在這方面有充足的改善空間。第二個因素是產品組合，當然會取決於不同產品線以及不同終端市場。

So from our point of view, while we achieved a 9-year record high, if you look at our gross margins and compare them to a high-performance analog and mixed-signal company that's a multibillion-dollar company, these companies have margins that are in the high 60s and low 70s. And that's what we aspire to achieve. And that will take time. And it will happen when we begin to increase the number of unique products to the market and when we can command premium pricing. And that's a long-term effort. And so doing things that other people can't do, like 1,000-volt capacitors, like 0.14 micron GaN on Silicon Carbide, doing 400G high-end analog solutions to knock out a DSP, these are things that are -- that will create value for the company. And that will certainly be our focus.

從我們的角度來看，雖然我們達成了9年來的最高紀錄，但如果你看我們的毛利率，並將其與一家高效能類比與混合訊號、且規模達數十億美元的公司相比，這些公司的毛利率通常在60%後段到70%初段。那是我們希望達成的目標。不過這需要時間。當我們開始把更多獨特產品推向市場、並且能夠取得溢價定價時，就會發生。這是一項長期努力。因此，去做別人做不到的事，例如1,000伏特電容、例如0.14微米的碳化矽基氮化鎵（GaN on Silicon Carbide）、例如400G高階類比解決方案以取代DSP，這些事情——都將為公司創造價值，而這也必然會是我們的重點。

And I'll highlight that we are very focused on the industrial and defense markets. And as I mentioned earlier, this is an area for MACOM that's been range-bound for years, and we are breaking through that now. And when you move into that space, you generally see less commodity -- lower -- less commoditization, let's say, of the platforms. So you're able to command stronger pricing. And so whether it's selling products to a satellite manufacturer or a defense contractor or focusing on industrial or even medical equipment, these are markets that demand performance. And that's going to continue to be a focus for the company.

我也要強調，我們非常聚焦於工業與國防市場。如我先前提到，這是 MACOM 多年來一直區間震盪的領域，而我們現在正在突破。當你進入那個領域時，通常會看到平台較不屬於大宗商品——也就是說，商品化程度較低。因此你能夠取得更強的定價能力。無論是把產品賣給衛星製造商或國防承包商，或是聚焦工業甚至醫療設備，這些市場都要求高效能。這也將持續是公司的重點。

Jack, did you want to add to that?

Jack，你想補充嗎？

No. I think you did a really good job covering that, but we are seeing margin improvements across many of the product lines that we do serve. So it is fairly broad-based and not just limited to the I&D items that Steve was referring to.

不用。我覺得你已經講得很完整了。不過我們確實看到我們所服務的許多產品線毛利率都有改善，所以這是相當廣泛的改善，而不僅限於 Steve 所提到的工業與國防（I&D）項目。

Great. Maybe for Steve, for my follow-up. I was hoping you could describe the level of orders you are seeing within your RF and I guess, Telecom business more broadly. I ask because some of your peers across the comms supply chain have spoken about a pushout in Chinese tender activity and weaker massive MIMO production plans, which you touched on a little bit in your prepared remarks. At the same time, one of your peers recently spoke about improving 10-gig PON activity. So I'd love to hear your thoughts on, I guess, why there is a pause in tenders and whether the investments in PON are percolating into fronthaul, where you should benefit from your recently introduced fronthaul lasers.

很好。接著我想追問 Steve。我希望你能描述一下你們在 RF 以及更廣義的電信業務中所看到的訂單水準。我之所以這麼問，是因為通訊供應鏈的一些同業提到中國招標活動有延後（pushout），以及大規模 MIMO 的生產計畫轉弱，你在事先準備的談話中也稍微提到。同時，另有一家同業最近談到 10G PON 活動正在改善。所以我想聽聽你的看法：為什麼招標會暫停？以及 PON 的投資是否正在滲透到前傳（fronthaul），而你們應可受惠於近期推出的前傳雷射。

Sure. Well, just a few comments. So there's -- MACOM has a very unique portfolio. There's really no company in the industry that is a direct peer that represents our product portfolio. So we are in very different markets. And most of our peers are more focused, let's say, in one technology set. So we -- I think we have a very unique portfolio where we have RF microwave, high-performance analog and optical. And so I think we're in a little bit of a unique position, which makes it difficult to do that one-to-one peer comparison.

好的。我先簡單說幾點。MACOM 擁有非常獨特的產品組合，產業中其實沒有任何公司能作為直接同業、完整對應我們的產品組合。因此我們所處的市場非常不同，而多數同業更偏向聚焦在單一技術領域。所以——我認為我們的產品組合非常獨特，涵蓋 RF 微波、高效能類比與光學。我們的位置有點特殊，這也使得一對一的同業比較變得困難。

Regarding Telecom, actually, this past quarter, it was our strongest booking in new order end market segment. It had the highest level of bookings, if that's -- and that's a bit of obviously a leading indicator of things to come. And that was driven by a broad business, broad drivers, not just 5G. We are seeing strength in cable infrastructure. We are seeing strength in SATCOM. And so we think that we're gaining market share there.

就電信而言，其實在剛過去這一季，它是我們新訂單預訂（booking）最強的終端市場區隔。它的預訂水準最高——如果這樣說可以的話——而這顯然是未來趨勢的一個領先指標。這是由廣泛的業務、廣泛的驅動因素所帶動，而不只是 5G。我們看到有線基礎建設走強，也看到衛星通訊（SATCOM）走強。因此我們認為我們正在那裡取得市占。

In terms of your question about why the pause in the tenders, I really can't answer that. And then as it relates to 10G PON, I can say that the growth for MACOM will come from new product introductions there. We do believe year-over-year from FY '21 to FY '20, we will have very strong year-over-year growth. And that will be even better when we look FY '22 to FY '21. We are just moving some of the latest products into the market. I mentioned we do have a burst mode TIA, but we have a better one coming that we think will allow us to gain market share.

至於你問為什麼招標會暫停，我其實無法回答。至於 10G PON，我可以說 MACOM 的成長將來自那裡的新產品導入。我們確實相信，從 2020 財年到 2021 財年，我們將會有非常強勁的年對年成長。而當我們看 2021 財年到 2022 財年時，表現會更好。我們正把一些最新產品推向市場。我提到我們確實有突發模式（burst mode）TIA，但我們還有一款更好的產品即將推出，我們認為那將讓我們得以取得市占。

And then the one question you had about the 10G laser, that laser is not ready for production yet. It will be ready for production beginning of next fiscal year.

另外你提到的 10G 雷射那個問題，那顆雷射目前還沒有準備好量產。它將在下一個會計年度開始時準備好進入量產。

And our next question coming from the line of Ruben Roy with WestPark Capital.

下一個問題來自 WestPark Capital 的 Ruben Roy。

Steve, I think you just touched on this, but maybe just talk about it just a little bit more. Based on your guidance for the June quarter, and assuming we don't see a big falloff in the September quarter, you're on track to hit that double-digit growth that you guys had targeted as a soft target for the fiscal year. And you just talked about '22 possibly being a bigger growth year than '21. So I just wanted to talk about that a little bit.

Steve，我想你剛剛有提到，但也許可以再多談一點。根據你們對6月季度的指引，並假設我們在9月季度不會看到大幅下滑，你們正朝著達成你們先前設定、作為本財年「軟性目標」的雙位數成長前進。而你剛才也談到 2022 年可能會是比 2021 年更高成長的一年。所以我想就這點再聊一下。

In terms of '22, it sounds like you have a couple of drivers coming up, potentially 5G coming back in China, new products ramping, including the 25G lasers, what you're doing with cross-selling, et cetera. But when you look at all of that in aggregate, can you give us an idea of how you're thinking about each of those items as -- relative to each other as driving the growth as you look into next year? Which are kind of the biggest growth drivers that you think help '22 maybe grow faster than '21 and if I'm on track thinking about that the right way?

就 2022 年而言，聽起來你們有幾個可能的驅動因素，例如中國 5G 可能回來、新產品放量（ramping），包括 25G 雷射、你們在交叉銷售（cross-selling）方面的作為等等。但當你把這些因素加總來看，你能否讓我們了解你如何看待各項因素彼此之間對成長的相對貢獻？哪些是你認為最大的成長驅動因素，能讓 2022 年可能比 2021 年成長更快？以及我這樣思考是否方向正確？

Sure. And just to clarify, I'm not sure I did say that FY '22 will outpace FY '21. I may have been referring specifically to a product line or a product set. So we have not given guidance and have not commented on what we expect our FY '22 growth level to be. That's work we're currently doing today, and it's just too early to talk about how we think FY '22 might shape up. Obviously, what we talked about is our growth will come from new products. And that's why the heavy emphasis on talking about the different things that we're doing. And to the extent that 5G kicks in, and we have success with not only on the power side but also on the optical side and some of our new front-end modules that we're gaining traction on, we do think it will be a very -- or has the potential to be a very good year.

好的。先澄清一下，我不確定我是否有說過 2022 財年會超越 2021 財年。我可能是特別指某一條產品線或某一組產品。因此我們尚未提供指引，也尚未評論我們預期 2022 財年的成長水準。這是我們目前正在進行的工作，現在談 2022 財年可能會如何發展還太早。顯然，我們談到的是成長將來自新產品。這也是為什麼我們很著重在談我們正在做的各種事情。若 5G 啟動，而我們不僅在功率端、也在光學端，以及我們一些正在取得進展的新前端模組上獲得成功，我們確實認為那將會是非常——或具有成為非常好的一年之潛力。

But I wouldn't necessarily want to call out any one of these product categories. The way we organize our business, we have 6 engineering silos, let's say. Each one is very focused on growing their individual businesses. Our largest -- one of our largest segments is HPA and diodes. And so we would expect those organizations to have more modest growth, let's say, compared to our smaller units, such as RF power. Our RF power business has tremendous potential, and our lightwave organization has tremendous growth potential. And these are some of our smaller business units, let's say. So in aggregate, we'll have to see how it works out. And that's certainly work that we'll be doing between now and the end of our fiscal year.

但我不一定想特別點名任何一個產品類別。以我們組織業務的方式來看，我們有6個工程「縱向」單位（silos）。每一個都非常專注於成長其各自的業務。我們最大的——其中一個最大的部門是高效能類比（HPA）與二極體。因此我們預期這些組織的成長會相對溫和一些，相較之下，我們較小的單位，例如 RF 功率。RF 功率業務有巨大的潛力，而我們的光波（lightwave）組織也有巨大的成長潛力。這些算是我們較小的業務單位。整體而言，我們還得看最後會如何發展。這也確實是我們在現在到本財年結束之間會持續進行的工作。

Okay. And just a quick follow-up for Jack. Jack, you mentioned inventory on your balance sheet. Just wondering if you have any comments on channel inventory by some of your end markets.

好的。再快速追問 Jack 一個問題。Jack，你提到資產負債表上的庫存。想請問你是否能就你們部分終端市場的通路庫存發表一些看法。

Yes. That's something we're very proud of, the inventory improvements we've made on our balance sheet over the past 18 months or so. We pay special attention to that to make sure we've got the right levels of inventory and have been working very closely with our customers to ensure we've got the right inventory to meet their requirements. And from a channel perspective, we continue to monitor that. We believe that the inventory levels there remain at fairly healthy levels, which I think bodes well for us as we go forward.

是的。這是我們非常引以為傲的一點：過去大約 18 個月以來，我們在資產負債表上的庫存改善。我們對此特別關注，以確保庫存水位適當，並且一直與客戶非常緊密合作，確保我們擁有符合其需求的正確庫存。從通路角度來看，我們也持續監控。我們相信通路端的庫存水位仍維持在相當健康的水平，我認為這對我們未來的發展是個好兆頭。

And our final question coming from the line of Harlan Sur with JPMorgan.

我們的最後一個問題來自 JPMorgan 的 Harlan Sur。

Great job on the quarter's execution and strong results, especially on the margin front. The U.S. defense spending budget is quite strong this year. It was strong last year. It looks like the proposals for next year are for spending levels to sustain at these current strong levels. And I believe the visibility here is very good because, obviously, these programs are very strategic in nature. So does the team see further growth in your defense business next year? And I know you can't disclose specific programs. But the strength you are seeing in defense are centered around what areas? Is it radar? Is it weapon systems, MILCOM, UAVs, ground-based, airborne? Any color here would be great.

本季執行表現與強勁成果做得很好，尤其是毛利率方面。美國今年的國防支出預算相當強勁，去年也很強；看起來明年的提案是支出水準將維持在目前這些強勁水準。我認為這裡的能見度非常好，因為顯然這些計畫本質上非常具策略性。因此，團隊是否看到你們明年國防業務還會進一步成長？我知道你們不能揭露特定計畫，但你們在國防領域看到的強勁需求主要集中在哪些領域？是雷達？武器系統、軍用通訊（MILCOM）、無人機（UAV）、地面、空載？若能提供一些補充說明會很有幫助。

Sure. And we view our defense business as so small relative to the overall budget and growth opportunity. And as I highlighted, it's an area of focus for the company. Part of our growth, I have to say, will come from new account penetration, and we do not have as strong relations with the major U.S. defense contractors as we should. And so we're still working on that, which is a very fundamental issue that we're making great progress resolving and fixing. And when we do that, we think we'll start to see, for the first time, opportunities that we just hadn't seen before. So the team is doing a great job. Our U.S. sales force is absolutely phenomenal, and they continue to impress Jack and I as to the type of opportunities and the quality of opportunities that they're digging out.

當然。我們認為相較於整體預算與成長機會，我們的國防業務規模仍然很小。正如我先前強調的，這是公司聚焦的領域之一。我必須說，我們成長的一部分將來自新客戶滲透，而我們與美國主要國防承包商的關係並沒有達到應有的強度。因此我們仍在努力改善，這是一個非常根本的議題；我們在解決與修正方面已取得很大進展。當我們把這件事做好後，我們認為將首次看到一些過去從未見過的機會。所以團隊做得非常好。我們的美國銷售團隊非常出色，他們持續讓 Jack 和我印象深刻，無論是他們挖掘出的機會類型，或是機會的品質。

The other thing I'll highlight is we're not a subsystem house. We are focused on component-level or high-power amplifier subassembly-type applications. And we'll only go after a subsystem if it's -- if we believe we have tremendous leverage from the chip point of view to leverage into the overall subsystem.

另外我想強調的是，我們不是做子系統的公司。我們專注在元件層級，或高功率放大器子組件類型的應用。只有在我們相信能從晶片角度取得極大的槓桿、進而帶動整體子系統時，我們才會去切入子系統。

Your question about what are the main applications, so most of our defense business revolves around RF and microwave components. So it's primarily discrete diodes, RF and microwave MMICs, power devices. And these are typically used in, as you highlighted, radar, MILCOM, ground-based radar, shipborne radar. We have content in numerous missile applications, and that's growing. And those are generally high-volume applications as well. So the good news is we have a very diversified business within the defense area, and it's just getting more diversified. And the fact that we're now letting a lot of radar houses know that not only do we have best-in-class GaN on Silicon Carbide, but we're willing to build a very high-power amplifier for you because we have the expertise to do it, just makes the growth opportunity even that much more exciting.

你問到主要應用是哪些：我們大部分的國防業務都圍繞在 RF 與微波元件。因此主要是分離式二極體、RF 與微波 MMIC、功率元件。這些通常用在你提到的雷達、軍用通訊（MILCOM）、地面雷達、艦載雷達。我們在多種飛彈應用中都有供貨內容，而且正在成長；而這些通常也是高出貨量的應用。所以好消息是，我們在國防領域內的業務非常多元，而且正變得更加多元。現在我們也讓許多雷達廠商知道，我們不僅擁有同級最佳的碳化矽基板氮化鎵（GaN on Silicon Carbide），而且我們願意為你們打造非常高功率的放大器，因為我們具備這方面的專業能力，這讓成長機會更加令人振奮。

So I think we're doing all the right things there. As you know, we highlighted on our last call the new relationship with the Air Force Research Labs to bring in some very high-frequency, high-power GaN on Silicon Carbide to our Lowell manufacturing facility. And we believe this process will have some of the best power efficiency numbers in the industry. So we are very focused on the defense industry, and we do expect to win more market share.

所以我認為我們在那裡做的都是正確的事情。如你所知，我們在上次電話會議中提到與空軍研究實驗室（Air Force Research Labs）的新合作關係，將一些非常高頻、高功率的碳化矽基板氮化鎵（GaN on Silicon Carbide）導入我們位於 Lowell 的製造廠。我們相信這個製程將擁有業界最佳之一的功率效率數據。因此我們非常聚焦國防產業，也確實預期會贏得更多市占率。

Great. And then from a -- maybe switching from a -- to a more product -- new product perspective. Last call, you guys talked about the potential opportunity for active copper cabling in the Data Center for short reach. You mentioned it today as well. Obviously, it's more economical versus active optical cabling. And we're hearing more and more from some of your cloud data center architects and customers talking about ACC. Can you give us a sense in terms of what high-performance analog solutions you're developing for this new opportunity and maybe timing of the product introduction?

很好。接著從——也許從——轉到更偏產品——新產品的角度。上次電話會議你們談到資料中心短距離傳輸的主動式銅纜（ACC）潛在機會，今天也有提到。顯然相較於主動式光纜，它更具成本效益。我們也從你們的一些雲端資料中心架構師與客戶那邊聽到越來越多關於 ACC 的討論。你們能否說明一下，針對這個新機會你們正在開發哪些高效能類比解決方案，以及產品導入時程大概會是什麼時候？

So we are engaged with the major customers that would want to build an active copper cable, and we are following their road maps. These -- so I don't necessarily want to get into the specific data rates or construct per se, but we are 1 year into this. And we would expect that if we're successful with some of our lead customers, that it will provide some new production next fiscal year.

我們正與希望打造主動式銅纜的主要客戶合作，並依循他們的產品路線圖。這些——所以我不一定想深入談特定資料速率或結構本身，但我們在這方面已投入 1 年。如果我們能在一些領先客戶上取得成功，我們預期在下一個會計年度會帶來一些新的量產。

So it is a very interesting area. We are very excited about the volumes. These are generally very high-volume applications, and we think we can solve problems that they haven't had other vendors solve. So we're bringing a new capability and maybe a better capability, design capability to solve the problems. But generally speaking, these are higher data rates. I probably shouldn't go into any more detail until we make formal announcements.

所以這是一個非常有趣的領域。我們對出貨量非常興奮。這些通常是非常高出貨量的應用，我們認為我們能解決一些他們過去沒有其他供應商能解決的問題。因此我們帶來新的能力，或許是更好的能力、設計能力來解決這些問題。但一般而言，這些是更高的資料速率。在我們正式公告之前，我可能不應該再透露更多細節。

And I'm showing no further questions at this time. I would like to turn the call back over to Steve Daly for any closing remarks.

目前我這邊顯示沒有進一步的提問。我想把電話會議交回給 Steve Daly，請他做結語。

Thank you. In closing, I would like to acknowledge our customers, our suppliers and our hard-working employees for making all these results possible. Thank you very much.

謝謝。最後，我想感謝我們的客戶、供應商，以及辛勤工作的員工，讓這些成果得以實現。非常感謝。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

各位女士先生，今天的電話會議到此結束。感謝各位的參與。您現在可以掛線。