MACOM Technology Solutions Holdings Inc (MTSI) 2020 Q4 法說會逐字稿

Good afternoon, and welcome to MACOM's Fourth Fiscal Quarter 2020 Conference Call. This conference call is being recorded today, Thursday, November 5, 2020. (Operator Instructions) 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.

下午好，歡迎來到 MACOM 的 2020 財年第四季度電話會議。本次電話會議將於今天，即 2020 年 11 月 5 日，星期四進行錄製。（操作員說明）我現在將電話轉給 MACOM 戰略計劃和投資者關係副總裁史蒂夫費蘭蒂先生。費蘭蒂先生，請繼續。

Thank you, Shannon. Good afternoon, and welcome to MACOM's Fourth Fiscal Quarter 2020 Earnings Conference Call. 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.

謝謝你，香農。下午好，歡迎來到 MACOM 的 2020 財年第四季度收益電話會議。我想提醒大家，我們今天的討論將包含前瞻性陳述，這些陳述受到 1995 年《私人證券訴訟改革法案》中前瞻性陳述安全港定義的某些風險和不確定性的影響。實際結果可能與今天討論的內容大不相同。

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. 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.

有關可能導致這些差異的風險和不確定性的更詳細討論，請參閱 MACOM 向美國證券交易委員會提交的文件。管理層在此次電話會議中的聲明還將包括對某些調整後的非 GAAP 財務信息的討論。公司的新聞稿和今天向美國證券交易委員會提交的相關表格 8-K 中提供了 GAAP 與調整後的非 GAAP 結果的對賬。

With that, I'll turn over the call to Steve Daly, President and CEO of MACOM.

有了這個，我將把電話轉給 MACOM 總裁兼首席執行官史蒂夫戴利。

Thank you, and good afternoon. 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 fourth quarter and full year financial results for fiscal year 2020. When Jack is finished, I will provide revenue and earnings guidance for the first quarter of FY '21 and then we will be happy to take some questions. Before I start my review, I would like to acknowledge the amazing work and contributions of our employees who make these results possible.

謝謝，下午好。我將以一般公司更新開始今天的電話會議。之後，我們的首席財務官 Jack Kober 將對我們 2020 財年的第四季度和全年財務業績進行更深入的審查。傑克完成後，我將提供第一季度的收入和收益指導21 財年，然後我們很樂意回答一些問題。在我開始審查之前，我想感謝我們的員工所做的出色工作和貢獻，是他們讓這些結果成為可能。

Revenue for the fourth fiscal quarter was $147.2 million and adjusted EPS was $0.40 per diluted share. This was the highest EPS performance in 12 quarters. I'll note that our fiscal year 2020 had multiple financial highlights, including: 6% year-over-year revenue growth; 440 basis points of improved gross margin; and operating income that grew by a factor of 8, which generated over $150 million in free cash flow.

第四財季收入為 1.472 億美元，調整後每股收益為 0.40 美元。這是 12 個季度以來最高的 EPS 表現。我會注意到，我們的 2020 財年有多個財務亮點，包括：收入同比增長 6%；毛利率提高 440 個基點；營業收入增長了 8 倍，產生了超過 1.5 億美元的自由現金流。

Jack and I, along with the entire management team are pleased with the progress to date, and we remain focused on further improving our financials. The secular trends associated with our 3 core end markets: data center, telecommunications and industrial and defense, provide us significant opportunities for growth. We estimate our serviceable available market, or SAM, is approximately $5 billion. To maximize our market share, we are working to establish MACOM as a leading supplier of lightwave, RF and high-speed analog solutions. It is our goal that these technologies will be supported with best-in-class customer engagements, manufacturing and quality.

傑克和我以及整個管理團隊對迄今為止取得的進展感到滿意，我們將繼續專注於進一步改善我們的財務狀況。與我們的 3 個核心終端市場相關的長期趨勢：數據中心、電信以及工業和國防，為我們提供了重要的增長機會。我們估計我們的可用服務市場 (SAM) 約為 50 億美元。為了最大化我們的市場份額，我們正在努力將 MACOM 打造成光波、射頻和高速模擬解決方案的領先供應商。我們的目標是，這些技術將得到一流的客戶參與、製造和質量的支持。

New products are our growth engine. And as I've stated in the past, our future performance will be based in part on our ability to introduce more innovative products at a faster pace. In support of our growth strategy, we are focused on execution and fast time to market. I see meaningful progress here. And as an example, I am pleased that our engineering teams have more than doubled the number of product introductions in fiscal year '20 versus fiscal year '19. Further, I am pleased the competitiveness and the uniqueness of our new products continues to improve.

新產品是我們的增長引擎。正如我過去所說，我們未來的表現將部分取決於我們以更快的速度推出更多創新產品的能力。為了支持我們的增長戰略，我們專注於執行和快速上市。我在這裡看到有意義的進展。例如，我很高興我們的工程團隊在 20 財年與 19 財年相比推出的產品數量增加了一倍以上。此外，我很高興我們新產品的競爭力和獨特性不斷提高。

As we start our new fiscal year, I would like to share some of our top priorities. Above all else, we seek to maintain a safe and healthy work environment for our employees. I'll note, we are in our third month of a program, which offers voluntary daily on-site COVID-19 screening to any employee working at our largest manufacturing sites. Easy access and fast COVID test results helped support a safe work environment.

在我們開始新的財政年度之際，我想分享一些我們的首要任務。最重要的是，我們努力為我們的員工維護一個安全和健康的工作環境。我會注意到，我們已經進入了一項計劃的第三個月，該計劃為在我們最大的製造工廠工作的所有員工提供自願的每日現場 COVID-19 篩查。輕鬆訪問和快速 COVID 測試結果有助於支持安全的工作環境。

Our first priority is to continue to improve our profitability. Strategies underpinning this effort include maximizing the efficiency of our R&D investments, developing high-margin differentiated products, improving factory utilization and yields, optimizing sales strategies and maintaining OpEx discipline.

我們的首要任務是繼續提高我們的盈利能力。支撐這一努力的戰略包括最大限度地提高我們研發投資的效率、開發高利潤差異化產品、提高工廠利用率和產量、優化銷售戰略以及保持運營支出紀律。

We are pleased that our operating margin is currently greater than 23%, and we are confident we can do even better. Second, we want to expand our presence in 5G utilizing RF, high-speed analog and lightwave solutions. Today, MACOM is present across the 5G network with product content in the antenna systems as well as in front haul, midhaul and metro long-haul optical systems.

我們很高興我們的營業利潤率目前超過 23%，我們相信我們可以做得更好。其次，我們希望利用射頻、高速模擬和光波解決方案擴大我們在 5G 領域的影響力。如今，MACOM 遍布 5G 網絡，其產品內容涉及天線系統以及前傳、中傳和城域長傳光學系統。

Today, we are only delivering a fraction of our potential, and we believe our best-performing products for some of these applications will come to market over the next 6 to 12 months. Third, we will use our high-speed analog and connectivity design capabilities to expand deeper into our target end markets. Our data center growth strategy includes working closely with worldwide cloud service providers to ensure our technology road maps are aligned with their future needs.

今天，我們只發揮了我們潛力的一小部分，我們相信我們針對其中一些應用的最佳性能產品將在未來 6 到 12 個月內上市。第三，我們將利用我們的高速模擬和連接設計能力更深入地擴展到我們的目標終端市場。我們的數據中心增長戰略包括與全球雲服務提供商密切合作，以確保我們的技術路線圖符合他們未來的需求。

Road map alignment is critical, whether working on current 100G, 200G or 400G systems or disruptive future generation architectures. Included in this effort is supporting emerging applications such as next-generation PON. Our high-speed analog and optical design capability is compelling, and we will build upon this strength.

路線圖對齊至關重要，無論是在當前的 100G、200G 或 400G 系統上工作，還是在顛覆性的下一代架構上工作。這項工作包括支持新興應用，例如下一代 PON。我們的高速模擬和光學設計能力令人信服，我們將在此優勢的基礎上再接再厲。

Fourth, we are focused on leveraging the manufacturing capability of our Lowell, Massachusetts and in Ann Arbor, Michigan wafer foundries. This is critical for our long-term industrial and defense end market growth. We have revamped our process technology road maps for each fab, and we expect to make some exciting announcements on new initiatives throughout our fiscal '21. Investing in our fab infrastructure and process technologies enables differentiation, which ultimately supports unique products that may drive highly profitable growth.

第四，我們專注於利用我們位於馬薩諸塞州洛厄爾和密歇根州安娜堡的晶圓代工廠的製造能力。這對於我們的長期工業和國防終端市場增長至關重要。我們已經修改了每個晶圓廠的工藝技術路線圖，我們希望在整個 21 財年發布一些令人興奮的新舉措。投資我們的晶圓廠基礎設施和工藝技術可以實現差異化，最終支持可能推動高利潤增長的獨特產品。

And fifth, our priority is to make -- is to take market share with best-in-class lasers and photodetectors in and around the data center and 5G telecom systems. We believe that our newest laser and APD products will set the standard for performance.

第五，我們的首要任務是在數據中心和 5G 電信系統及其周圍使用一流的激光器和光電探測器來佔據市場份額。我們相信，我們最新的激光和 APD 產品將樹立性能標準。

We have a broad technology portfolio in each one of our engineering organizations, now has detailed product road maps and refreshed market positioning strategies. It is exciting to see our engineers and sales teams working in a collaborative way with customers to win market share.

我們的每個工程組織都有廣泛的技術組合，現在有詳細的產品路線圖和更新的市場定位戰略。很高興看到我們的工程師和銷售團隊以協作的方式與客戶合作以贏得市場份額。

Let me highlight one example of improving our position in the emerging 10G PON market. Today, MACOM is a leading supplier of 2.5G PON lasers. Historically, we have supplied 2 GPON products in volume production: lasers and laser drivers. As 10G PON emerges and ramps up, we expect to provide up to 5 products across 4 product families, namely: high- and low-power lasers; laser drivers; transimpedance amplifiers; and photodetectors. PON networks are deployed globally, and we believe the work-from-home trend across Europe, Asia and the U.S. will accelerate the deployment of next-generation PON systems because the systems operate at higher speeds. This trend has the potential to benefit MACOM.

讓我強調一個提高我們在新興 10G PON 市場地位的例子。如今，MACOM 是 2.5G PON 激光器的領先供應商。歷史上，我們提供了 2 種量產的 GPON 產品：激光器和激光驅動器。隨著 10G PON 的出現和量產，我們預計將提供多達 4 個產品系列的 5 個產品，即：高功率和低功率激光器；激光驅動器；跨阻放大器；和光電探測器。 PON 網絡在全球部署，我們相信歐洲、亞洲和美國的在家工作趨勢將加速下一代 PON 系統的部署，因為系統運行速度更快。這種趨勢有可能使 MACOM 受益。

Our Q4 revenue by end market was as follows: data center was $43.9 million; telecom was $55.4 million; and industrial and defense was $47.9 million. Data center had sequential growth of 35%, while our Industrial & Defense business was essentially flat, and telecom declined by 2%.

我們第四季度的終端市場收入如下：數據中心為 4390 萬美元；電信為5540萬美元；工業和國防為 4790 萬美元。數據中心環比增長 35%，而我們的工業和國防業務基本持平，電信業務下降 2%。

We had an exceptional year in bookings. And we are pleased to start our fiscal year '21 with a near-record backlog. Our Q4 book-to-bill ratio was approximately 0.8. However, I will note, our book-to-bill for the full year was 1.1:1. I'll also note, in FY '20, we had periods of exceptional bookings driven by healthy underlying demand across our end markets, augmented at times by long-lead time I&D orders, and customer pull-ins driven by concerns about supply chain disruptions due to COVID 19. Our Q4 turns business was approximately 13% of total revenue.

我們在預訂方面度過了非凡的一年。我們很高興以接近創紀錄的積壓開始我們的 21 財年。我們第 4 季度的訂單出貨比約為 0.8。但是，我會注意到，我們全年的訂單出貨比為 1.1:1。我還要指出，在 20 財年，我們的終端市場存在健康的潛在需求，有時會因長周期 I&D 訂單以及對供應鏈中斷的擔憂而導致客戶拉動而增加預訂量由於 COVID 19。我們的第四季度營業額約為總收入的 13%。

I'll highlight in Q4, we ceased shipping and canceled certain customer backlog in order to remain compliant with the expanded U.S. export restrictions announced in August. We estimate the year-over-year impact of the expanded restrictions is approximately $20 million of lost revenues. We do expect to offset this lost revenue with growth from new products and market share gains at other customers. We track channel inventory and long-term demand forecasts from our largest customers. And I would characterize the new orders environment in October as improving when compared to our fourth quarter.

我將在第四季度強調，我們停止發貨並取消了某些客戶積壓訂單，以繼續遵守 8 月份宣布的擴大的美國出口限制。我們估計擴大限制的同比影響約為 2000 萬美元的收入損失。我們確實希望通過新產品的增長和其他客戶的市場份額增長來抵消這一收入損失。我們跟踪最大客戶的渠道庫存和長期需求預測。與我們的第四季度相比，我認為 10 月份的新訂單環境有所改善。

Now turning to the markets. Our data center end market revenue was driven by strong cloud data center demand for both domestic and international deployments. Our 100G high-performance analog products and our emerging 200 and 400G analog products are supporting this growth. I'll note that our international data center growth is driven by Asia-based data center expansion, where we sell both 25G and 100G analog products.

現在轉向市場。我們的數據中心終端市場收入受到國內和國際部署的強勁雲數據中心需求的推動。我們的 100G 高性能模擬產品以及新興的 200 和 400G 模擬產品正在支持這一增長。我會指出，我們的國際數據中心增長是由亞洲數據中心擴張推動的，我們在那裡銷售 25G 和 100G 模擬產品。

Our telecom market demand was primarily driven by 5G products and to a lesser extent, GPON products. We believe the near-term demand for our 5G products will temporarily slow before it begins to accelerate again when the next round of 5G bids is released. We also expect near-term delays in global deployments of 5G due to COVID-19 and the Huawei business impact. Nevertheless, the secular growth opportunity in 5G remains intact as worldwide demand for improved connectivity at higher data rates will continue to grow.

我們的電信市場需求主要由 5G 產品驅動，其次是 GPON 產品。我們認為，在下一輪 5G 招標發佈時，對我們 5G 產品的近期需求將暫時放緩，然後開始再次加速。我們還預計，由於 COVID-19 和華為業務的影響，5G 的全球部署近期會出現延遲。儘管如此，隨著全球對以更高數據速率改善連接的需求將繼續增長，5G 的長期增長機會依然存在。

Our industrial and defense end market revenue performed as we expected, with general weakness in test and measurement as well as avionics. However, in the coming quarters, we anticipate the negative trends will be offset by strengthening demand from a variety of U.S. defense programs, some of which are already in backlog.

我們的工業和國防終端市場收入表現符合我們的預期，測試和測量以及航空電子設備普遍疲軟。然而，在未來幾個季度，我們預計負面趨勢將被各種美國國防計劃的需求增加所抵消，其中一些已經積壓。

Each of our 6 engineering teams has tremendous growth potential. Notably, we have a tremendous growth opportunity with our RF power business. Our efforts include: one, taking market share in legacy silicon bipolar business; two, expanding our MACOM pure carbide GaN product portfolio with compelling new products; three, partnering with major OEMs across the industrial and defense markets; and four, participating in the 5G power amplifier opportunity.

我們的 6 個工程團隊中的每一個都具有巨大的增長潛力。值得注意的是，我們的射頻功率業務擁有巨大的增長機會。我們的努力包括：一是搶占傳統矽雙極業務的市場份額；第二，通過引人注目的新產品擴展我們的 MACOM 純碳化物 GaN 產品組合；第三，與工業和國防市場的主要原始設備製造商合作；四、參與5G功放機會。

As you may remember, we launched 2 flagship general purpose pure carbide GaN products last quarter. Since then, we have expanded our pure carbide GaN portfolio to a total of 5 products, including 25-watt, 65-watt, 85-watt, 150-watt and 2.6 kilowatts. Our 2.6 kilowatt product is truly unique and represents MACOM's highest power product ever. And it achieves industry-leading power levels, making it ideal for certain defense applications. We plan to grow our pure carbide portfolio significantly over the next 12 months with additional high-performance products.

您可能還記得，上個季度我們推出了 2 款旗艦通用純碳化物 GaN 產品。從那時起，我們將純硬質合金 GaN 產品組合擴展到總共 5 種產品，包括 25 瓦、65 瓦、85 瓦、150 瓦和 2.6 千瓦。我們的 2.6 千瓦產品是真正獨一無二的，代表了 MACOM 有史以來功率最高的產品。它達到了行業領先的功率水平，使其成為某些國防應用的理想選擇。我們計劃在未來 12 個月內通過更多高性能產品顯著增加我們的純硬質合金產品組合。

In summary, we stand in front of a multibillion-dollar SAM with a strengthening technology portfolio. We maintain a long-term perspective on executing our strategy. We are excited with the pace of innovation that we are achieving. We are confident we can continue to improve our financials and take market share in the months and years ahead.

總而言之，我們站在價值數十億美元、技術組合不斷加強的 SAM 面前。我們在執行我們的戰略時保持長遠的眼光。我們對正在實現的創新步伐感到興奮。我們有信心在未來數月和數年內繼續改善我們的財務狀況並佔據市場份額。

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

傑克現在將對我們的財務業績進行更詳細的審查。

Thank you, Steve. Fiscal Q4 was another period of solid financial performance. We posted sequential improvements in revenue, margins, earnings and cash flow. Revenue for the fourth fiscal quarter of 2020 was $147.2 million, up 7% from Q3. The sequential improvement in revenue was driven primarily by positive trends in the data center end market.

謝謝你，史蒂夫。第四財季是又一個財務業績穩健的時期。我們公佈了收入、利潤率、收益和現金流的連續改善。 2020 年第四財季收入為 1.472 億美元，比第三季度增長 7%。收入的環比增長主要是由數據中心終端市場的積極趨勢推動的。

For fiscal year 2020, revenue was $530 million, up 6% from $500 million in fiscal 2019. On a geographic basis, approximately 36% of fiscal Q4 revenue was from domestic customers and 64% was from international customers. And for the full fiscal year 2020, 41% was domestic and 59% international. Adjusted gross profit in fiscal Q4 was $83 million or 56.4% of revenue. Adjusted gross margin was up 90 basis points sequentially.

2020 財年收入為 5.3 億美元，比 2019 財年的 5 億美元增長 6%。按地域劃分，約 36% 的第四財季收入來自國內客戶，64% 來自國際客戶。在整個 2020 財年，41% 是國內的，59% 是國際的。第四財季調整後的毛利為 8300 萬美元，佔收入的 56.4%。調整後毛利率環比上升 90 個基點。

From an operational perspective, we remain focused on many continuous improvement initiatives that we believe will support improvements to gross margins going forward. These initiatives include improving the efficiency of our manufacturing, supply chain and other operations as well as the continued management of our inventory.

從運營的角度來看，我們仍然專注於許多我們認為將支持未來毛利率提高的持續改進舉措。這些舉措包括提高我們製造、供應鍊和其他運營的效率，以及我們庫存的持續管理。

Adjusted gross margin for fiscal year 2020 was 55%, up 440 basis points from 50.6% in fiscal 2019. Total adjusted operating expense was $48.9 million, consisting of R&D expense of $32.1 million and SG&A expense of $16.7 million. Operating expenses were up approximately $2 million sequentially, as we anticipated, primarily due to the timing of certain R&D expenses. We continue to manage our operating expenses closely. We have instilled a corporate-wide focus on expense management in order to create ongoing opportunities for savings, which help support our new product development and growth initiatives.

2020 財年調整後的毛利率為 55%，較 2019 財年的 50.6% 上升 440 個基點。調整後的運營總費用為 4890 萬美元，其中研發費用為 3210 萬美元，SG&A 費用為 1670 萬美元。正如我們預期的那樣，運營費用環比增加了約 200 萬美元，這主要是由於某些研發費用的時間安排。我們繼續密切管理我們的運營費用。我們在全公司範圍內灌輸了對費用管理的關注，以創造持續的節約機會，這有助於支持我們的新產品開發和增長計劃。

Looking ahead, we expect operating expenses to increase modestly from Q4 levels. As noted in the past, we will continue to carefully balance investments in new product opportunities while managing our discretionary spending. Adjusted operating income in fiscal Q4 was $34.1 million, up from $29.3 million in fiscal Q3.

展望未來，我們預計運營費用將從第四季度的水平小幅增長。正如過去所指出的那樣，我們將繼續謹慎平衡對新產品機會的投資，同時管理我們的可自由支配支出。第四財季調整後營業收入為 3410 萬美元，高於第三財季的 2930 萬美元。

Adjusted operating margin was 23.2% for fiscal Q4, sequentially up from 21.4% in fiscal Q3. For fiscal year 2020, adjusted operating income was $96 million compared to $10.9 million in fiscal 2019. We expect the combination of top line growth, improving gross margins and stable operating expenses to provide continued operating leverage over the course of fiscal 2021.

第四財季調整後營業利潤率為 23.2%，高於第三財季的 21.4%。 2020 財年調整後營業收入為 9600 萬美元，而 2019 財年為 1090 萬美元。我們預計收入增長、毛利率提高和運營支出穩定將在 2021 財年提供持續的運營槓桿。

Depreciation expense for fiscal Q4 was $6.7 million, and adjusted EBITDA was $40.8 million. For fiscal 2020, our last 12 months adjusted EBITDA was $124.5 million as compared to EBITDA of $40.6 million in fiscal 2019, a year-over-year improvement of more than 200%.

第四財季的折舊費用為 670 萬美元，調整後的 EBITDA 為 4080 萬美元。對於 2020 財年，我們最近 12 個月的調整後 EBITDA 為 1.245 億美元，而 2019 財年的 EBITDA 為 4060 萬美元，同比增長超過 200%。

Fiscal Q4 adjusted net interest expense was approximately $4.2 million, down approximately $500,000 from fiscal Q3 2020. The decline was primarily driven by the reduction of LIBOR rates on our floating rate term loan and higher interest income on our short-term investments. Looking ahead, we expect net interest expense to remain roughly at these levels.

第四財季調整後的淨利息支出約為 420 萬美元，比 2020 財年第三季度減少約 500,000 美元。下降的主要原因是浮動利率定期貸款的倫敦銀行同業拆借利率降低以及短期投資的利息收入增加。展望未來，我們預計淨利息支出將大致保持在這些水平。

Our adjusted income tax rate in fiscal Q4 continued at 8% and resulted in an expense of approximately $2.4 million. We expect our adjusted income tax rate to reduce to 5% for fiscal Q1 and the remainder of fiscal 2021, as we expect to continue to have relatively low cash tax payments. Fiscal Q4 adjusted net income was $27.6 million compared to $22.7 million in fiscal Q3.

我們在第四財季調整後的所得稅率繼續保持在 8%，導致支出約為 240 萬美元。我們預計第一財季和 2021 財年剩餘時間的調整後所得稅率將降至 5%，因為我們預計現金稅支付將繼續相對較低。第四財季調整後淨收入為 2760 萬美元，而第三財季為 2270 萬美元。

Adjusted earnings per fully diluted share was $0.40 in fiscal Q4, utilizing a share count of 69.3 million shares compared to $0.33 of adjusted earnings per share in fiscal Q3. For fiscal year 2020, adjusted net income was $67.1 million and adjusted EPS was $0.98 as compared to a net loss of $19.2 million and a loss of $0.29 in fiscal 2019.

第四財季調整後的每股完全攤薄收益為 0.40 美元，使用股數為 6930 萬股，而第三財季的調整後每股收益為 0.33 美元。 2020 財年調整後淨收入為 6710 萬美元，調整後每股收益為 0.98 美元，而 2019 財年淨虧損為 1920 萬美元，虧損為 0.29 美元。

Now moving on to cash flow and balance sheet items. Fiscal Q4 was an exceptional quarter for cash flow. Q4 cash flow from operations was $74.4 million. Improvements in operating income and strong accounts receivable collections helped to enable strong cash generation for the quarter.

現在轉向現金流量和資產負債表項目。第四財季是現金流的一個特殊季度。第四季度運營現金流為 7440 萬美元。營業收入的改善和強勁的應收賬款催收有助於本季度產生強勁的現金。

During Q4, we received payments of approximately $18 million associated with prior year's United States tax return receivables. These cash receipts are considered onetime in nature and are not expected to recur in the future. Cash receipts are considered onetime in nature and are not expected to recur in the future. Capital expenditures totaled $4.9 million for fiscal Q4. For fiscal 2020, CapEx came in at $17.6 million as compared to $38 million in fiscal year 2019.

在第四季度，我們收到了大約 1800 萬美元的款項，這些款項與上一年的美國應收納稅申報表相關。這些現金收入在性質上被認為是一次性的，預計不會在未來再次發生。現金收入在性質上被認為是一次性的，預計不會在未來再次發生。第四財季的資本支出總計 490 萬美元。 2020 財年資本支出為 1760 萬美元，而 2019 財年為 3800 萬美元。

Free cash flow was $69.5 million for the fourth fiscal quarter. For fiscal year 2020, we generated $153.8 million in free cash flow versus negative free cash flow of $17.3 million in fiscal 2019. This year-over-year cash flow improvement was driven by the numerous structural improvements we've made to the business, working capital improvements as well as the onetime collection of prior year tax receivable, I noted earlier. We feel the ongoing operational and financial improvement initiatives will continue to help drive positive cash flow going forward.

第四財季的自由現金流為 6950 萬美元。在 2020 財年，我們產生了 1.538 億美元的自由現金流，而在 2019 財年，我們產生了 1730 萬美元的負自由現金流。同比現金流的改善是由我們對業務進行的眾多結構性改進推動的，工作資本改善以及一次性徵收上一年的應收稅款，我之前提到過。我們認為正在進行的運營和財務改進計劃將繼續幫助推動正現金流向前發展。

Our Q4 accounts receivable balance was $45.9 million down from $60.5 million in Q3. As a result, days sales outstanding were 35 days. As I've noted in the past, we've made many operational improvements within the business, including our sales, inventory and operations planning, or SIOP process. These improvements have allowed us to better control our production processes and manage shipment linearity during the quarter.

我們第四季度的應收賬款餘額為 4590 萬美元，低於第三季度的 6050 萬美元。因此，未完成銷售天數為 35 天。正如我過去指出的那樣，我們在業務中進行了許多運營改進，包括我們的銷售、庫存和運營規劃或 SIOP 流程。這些改進使我們能夠在本季度更好地控制我們的生產流程和管理出貨線性度。

During Q4, we were pleased that we were able to ship more of our revenue earlier in the quarter, which helped to drive the exceptional cash generation and lower DSO during the quarter. Inventories were $91.6 million at quarter end, down another $4 million sequentially. Inventory turns improved to 2.8x during the fourth fiscal quarter, which has the highest inventory turns we've achieved since 2015. Inventory management remains an area of emphasis, and we see ongoing opportunities to further improve these metrics going forward.

在第四季度，我們很高興能夠在本季度早些時候交付更多收入，這有助於推動本季度產生出色的現金並降低 DSO。季度末存貨為 9160 萬美元，比上一季度又減少了 400 萬美元。第四財季庫存周轉率提高到 2.8 倍，這是我們自 2015 年以來的最高庫存周轉率。庫存管理仍然是一個重點領域，我們看到了進一步改進這些指標的持續機會。

Cash, cash equivalents and short-term investments for the fourth fiscal quarter were $333 million, up $68 million from Q3. In total, for fiscal year 2020, our cash and investment balances increased by $156 million. As a reminder, our short-term investments are comprised of corporate bonds and commercial paper and are classified as held for sale.

第四財季的現金、現金等價物和短期投資為 3.33 億美元，比第三季度增加 6800 萬美元。總的來說，在 2020 財年，我們的現金和投資餘額增加了 1.56 億美元。提醒一下，我們的短期投資包括公司債券和商業票據，並被歸類為持有待售。

Long-term debt of $659 million is covenant-light and has minimal annual principal repayments until its maturity in May 2024. In addition, we have $30 million of finance leases. Our trailing 12-month EBITDA increased again in fiscal Q4. With the increase in our cash position and the improvement in trailing 12-month EBITDA, we exit fiscal 2020 with a net leverage ratio of around 3.4x.

6.59 億美元的長期債務是輕型契約，在 2024 年 5 月到期之前每年的本金償還最少。此外，我們還有 3000 萬美元的融資租賃。我們過去 12 個月的 EBITDA 在第四財季再次增長。隨著我們現金頭寸的增加和過去 12 個月 EBITDA 的改善，我們在 2020 財年結束時的淨槓桿率約為 3.4 倍。

We feel Q4 was another solid quarter and concludes a year of sequential financial and operational improvements in many areas across the company. We are pleased with our recent progress and believe there continues to be more for us to do to continuously improve the business and achieve our longer-term objectives over the course of fiscal 2021 and beyond.

我們認為第四季度是又一個穩健的季度，結束了公司許多領域連續一年的財務和運營改進。我們對最近取得的進展感到滿意，並相信在 2021 財年及以後，我們還有更多工作要做，以不斷改進業務並實現我們的長期目標。

I'll now turn the discussion back over to Steve.

我現在將討論轉回給史蒂夫。

Thank you, Jack. MACOM expects revenue in Q1 ending January 1, 2021, to be in the range of $146 million to $150 million, which is approximately 24% year-over-year growth at the midpoint. Adjusted gross margin is expected to be in the range of 56% to 58%. And adjusted earnings per share is expected to be between $0.41 and $0.45 based on 69.8 million fully diluted shares.

謝謝你，傑克。 MACOM 預計截至 2021 年 1 月 1 日的第一季度收入將在 1.46 億美元至 1.5 億美元之間，中點同比增長約 24%。調整後的毛利率預計在 56% 至 58% 之間。基於 6980 萬股完全稀釋的股票，調整後的每股收益預計在 0.41 美元至 0.45 美元之間。

In Q1, we expect Industrial & Defense revenues to grow approximately 20% sequentially, and Data Center and Telecom to be down approximately 10%. And a year-over-year comparison at the midpoint of our Q1 guidance, Data Center and Telecom are expected to be up approximately 70% and 10%, respectively.

在第一季度，我們預計工業和國防收入將環比增長約 20%，而數據中心和電信收入將下降約 10%。與我們第一季度指導的中點相比，數據中心和電信預計分別增長約 70% 和 10%。

I'll also note, we expect strong full year performance from these 2 end markets. We are excited about the multiple growth opportunities in front of us. And I would now like to ask the operator to take any questions.

我還要指出，我們預計這兩個終端市場全年表現強勁。我們對擺在我們面前的多重增長機會感到興奮。我現在想請接線員回答任何問題。

(Operator Instructions) Our first question coming from the line of Harsh Kumar with Piper Sandler.

（操作員說明）我們的第一個問題來自 Harsh Kumar 和 Piper Sandler 的台詞。

Solid performance, congratulations. Just a set of impressive numbers. Steve, first question for you. Industrial & defense turning up. I think you said 20% sequentially. So I'm curious what is happening there, if some of that is onetime in nature? Or do you -- you've been counting on sort of the turn in industrial? Or is that turn for good to growth is finally starting to happen, and we should expect sustained growth here?

穩定的表現，恭喜。只是一組令人印象深刻的數字。史蒂夫，你的第一個問題。工業和國防出現。我想你說的順序是 20%。所以我很好奇那裡發生了什麼，如果其中一些是一次性的？或者你 - 你一直在指望工業的轉變？還是向好增長的轉變終於開始發生，我們應該期待這裡的持續增長？

So thanks for the question. I would say that there's a few things happening in our I&D end market going into Q1. The first is our U.S. defense business is improving. We've got a very solid backlog. The type of products we're selling into this market are typically for ground-based and airborne radars as well as mobile radios. And I would just also note that's being supported by an uptick in some of our automotive radar products that we sell into that market as well.

所以謝謝你的問題。我會說進入第一季度，我們的 I&D 終端市場發生了一些事情。首先是我們的美國國防業務正在改善。我們有大量的積壓工作。我們向這個市場銷售的產品類型通常用於地面和機載雷達以及移動無線電。我還要指出，我們也向該市場銷售的一些汽車雷達產品的價格上漲也支持了這一點。

In terms of the long-term trend for industrial and defense, I think our fiscal '21 is going to be a very good year. We have done a really nice job setting ourselves up for growth, mostly in the back half and mostly going into our fiscal '22 with winning some significant new business. So we do believe there is kind of a turning point here where we should start to deliver growth on this end market. And I'll just highlight that this is a market that we've struggled with. Over the last 3 to 4 years has been -- it's actually our largest market, but it just hasn't been growing. And the growth that you're going to see is really going to be product-driven and market penetration strategies driven. Whether it be asking our team in the Lightwave business unit to enter the defense industry with some of their technologies or whether it's bringing our pure carbide products, the GaN on silicon carbide to this end market.

就工業和國防的長期趨勢而言，我認為我們的 21 財年將是非常好的一年。我們在為增長做好準備方面做得非常好，主要是在後半部分，並且主要是通過贏得一些重要的新業務進入我們的 22 財年。所以我們確實相信這裡有一個轉折點，我們應該開始在這個終端市場實現增長。我只想強調這是一個我們一直在努力應對的市場。在過去的 3 到 4 年裡，它實際上是我們最大的市場，但它一直沒有增長。您將看到的增長實際上將由產品驅動和市場滲透策略驅動。無論是要求我們 Lightwave 業務部門的團隊利用他們的一些技術進入國防工業，還是將我們的純碳化物產品，即碳化矽基 GaN 帶到這個終端市場。

So there's really a tremendous opportunity in this end market. And I would like to think that this level of growth will continue. I'll just caveat my comments with the fact that we do believe our fiscal '21 is going to be a good year, top line growth. We're certainly targeting more than 10%. So our I&D business will help that tremendously.

因此，這個終端市場確實存在巨大的機會。我想這種增長水平將持續下去。我只是警告我的評論，因為我們確實相信我們的 21 財年將是一個不錯的年份，收入增長。我們的目標當然是超過 10%。因此，我們的 I&D 業務將對此提供巨大幫助。

For my follow-up, Steve, when you say fiscal '21 will be a 10% grower, did you mean that -- and this is just to clarify again, do you mean that for the industrial business or do you mean for the overall company?

對於我的後續行動，史蒂夫，當你說 21 財年將增長 10% 時，你的意思是 - 這只是為了再次澄清，你的意思是工業企業還是整體公司？

Yes. I was meaning year-over-year company growth.

是的。我的意思是公司同比增長。

Okay. And then for my follow-up, Steve, historically, in a couple of -- few years around December time frame, the channel inventory particularly in optical in Asia sort of starts to adjust and create some fluctuations in business. I was curious how you feel about the channel situation for the optical parts, particularly for data center and long-haul? And what you are seeing there?

好的。然後對於我的後續行動，史蒂夫，從歷史上看，在 12 月左右的幾年內，渠道庫存，特別是亞洲的光學渠道庫存開始調整，並在業務中造成一些波動。我很好奇您對光學部件的通道情況有何看法，尤其是數據中心和長途？你在那裡看到了什麼？

I don't think we're going to have those same issues this year that -- in terms of things you've seen in the past. Our channel inventory is actually quite healthy. I think we will see a bit of a slowdown, as I commented in my prepared remarks regarding 5G, specifically fronthaul related. So there is a bit of a slowdown there, but it's not channel inventory related. We think it's really, let's say, we're waiting for the new round of tenders to come out, which will spark new demand.

我不認為我們今年會遇到同樣的問題——就你過去看到的事情而言。我們的渠道庫存實際上非常健康。我認為我們會看到一些放緩，正如我在準備好的關於 5G 的評論中評論的那樣，特別是前傳相關的。所以那裡有點放緩，但這與渠道庫存無關。我們認為這真的是，比方說，我們正在等待新一輪的招標出來，這將激發新的需求。

So we are pretty comfortable with our inventory positions, not only here inside of MACOM. Jack commented that our inventories have been coming down. We're very happy about that. Certainly record turns, as he pointed out, since 2015. And we think our channel is in a reasonable spot, not only to manage their inventories, but also to react to the turn on when 5G begins, specifically fronthaul, where our customers are demanding fast delivery of products when they want to build their modules.

所以我們對我們的庫存位置非常滿意，不僅是在 MACOM 內部。傑克評論說我們的庫存一直在下降。我們對此感到非常高興。正如他指出的那樣，自 2015 年以來，當然是創紀錄的轉變。而且我們認為我們的渠道處於合理的位置，不僅可以管理他們的庫存，還可以在 5G 開始時對開啟做出反應，特別是前傳，我們的客戶要求當他們想要構建模塊時快速交付產品。

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

您的下一個問題來自 Tore Svanberg 與 Stifel 的合作。

Yes, Tore Svanberg here. Congratulations on the strong quarter. Steve, you talked about in 10-gig PON, you're really adding some content. I believe you said from 2 products to 5. Is that just a result of the architecture? Or are you basically introducing new parts that would gain share? And when do you expect 10-gig in earnest to become more material?

是的，這裡是 Tore Svanberg。祝賀強勁的季度。史蒂夫，你在 10-gig PON 中談到，你真的在添加一些內容。我相信你說過從 2 個產品到 5 個。這只是架構的結果嗎？或者你基本上是在引入新的零件來獲得份額？你什麼時候真正期待 10-gig 變得更重要？

Yes. So Tore, historically, we have serviced 2.5G PON, as I highlighted. And so as the newer next-generation systems are emerging, there's really 3 different versions that we're interested in, XG-PON, which is asymmetrical system that has 2.5 and 10G data rates, then XGS-PON, which is basically 10G both ways and then EPON. So we see -- and we've been developing products to support each of these really for the past year, 1.5 years. In terms -- so it's really new content. It's recognizing that essentially these systems are at the terminal level or taking electrical signals and turning them into optical and pushing them down to fiber. So this is an area where customers are looking for a very cost-effective, easy-to-implement solutions. And we're very good at working with customers to give them these turnkey solutions.

是的。因此，正如我強調的那樣，從歷史上看，我們已經為 2.5G PON 提供服務。因此，隨著更新的下一代系統的出現，我們真正感興趣的有 3 個不同的版本，XG-PON，它是具有 2.5 和 10G 數據速率的非對稱系統，然後是 XGS-PON，它基本上都是 10G方式然後EPON。所以我們看到 - 在過去的一年裡，我們一直在開發產品來支持其中的每一個，1.5 年。就術語而言，它確實是新內容。它認識到本質上這些系統處於終端級別或接收電信號並將它們轉換為光學信號並將它們向下推送到光纖。因此，這是一個客戶正在尋找極具成本效益、易於實施的解決方案的領域。我們非常擅長與客戶合作，為他們提供這些交鑰匙解決方案。

And so our approach here is really to try to maximize the content. So bringing in TIAs, something we've not shipped into this market before or the APDs, the photodetectors. So that's brand-new content. And then when you add on top of that, certainly, the laser content, the lasers are a little bit more difficult. They're different wavelengths or (inaudible) on them.

所以我們這裡的方法實際上是嘗試最大化內容。因此，引入 TIA，這是我們以前沒有運到這個市場的東西，或者引入 APD，即光電探測器。這是全新的內容。然後，當然，當您在此之上添加激光內容時，激光會稍微困難一些。它們具有不同的波長或（聽不清）。

We think we're in a pretty good spot. It is emerging. I will caveat my comments with that. In terms of the volumes, people talk about different levels of volumes. We think over the next 12 months, it's probably in the range of maybe somewhere between 5 million and 10 million ONUs, which are the user premise. And -- but we think in the out years and the peak years, that could be 30 million to 40 million units a year. So when you multiply that by 4 parts, it gets quite interesting.

我們認為我們處於一個非常好的位置。它正在興起。我會警告我的評論。就音量而言，人們談論不同級別的音量。我們認為在接下來的 12 個月內，它可能在 500 萬到 1000 萬個 ONU 之間，這是用戶前提。而且 - 但我們認為在過去的幾年和高峰年，每年可能有 3000 萬到 4000 萬台。所以當你將它乘以 4 個部分時，它會變得非常有趣。

So this is what we're working on. The good news is it's an emerging market, and we think our timing will be lined up with the ramp. And I'll also highlight that MACOM has a tremendous reputation in this market for being able to deliver very high volume products. And so we're bringing with us a very strong reputation into the market for being able to deliver, and we have direct customer access and engagement. So we're actually quite excited about the next-gen PON systems.

所以這就是我們正在努力的。好消息是它是一個新興市場，我們認為我們的時機將與斜坡對齊。我還要強調的是，MACOM 在這個市場上以能夠提供非常大批量的產品而享有盛譽。因此，我們因能夠交付而在市場上享有很高的聲譽，並且我們有直接的客戶訪問和參與。所以我們實際上對下一代 PON 系統感到非常興奮。

Yes. My follow-up is for Jack. Even when adjusting for the tax return, your operating cash flow was 38% of revenue. How should we think about cash flows going forward on a normalized basis as a function of revenue? I know it's -- it moves around from quarter-to-quarter, but if you have sort of a number in mind that you can share with us, that would be great.

是的。我的後續行動是針對傑克的。即使在調整納稅申報表時，您的經營現金流也佔收入的 38%。我們應該如何考慮在標準化基礎上作為收入函數的未來現金流量？我知道它是 - 它從一個季度到另一個季度移動，但如果你有一個可以與我們分享的數字，那就太好了。

We did have -- sorry, we did have a very good cash generation quarter here. And the way we look at our free cash flow is really trying to look at that in terms of a percentage of our non-GAAP net income. And we believe that can be a 1:1. It's going to bounce around. Some quarters might be a little bit better depending on what we do from a balance sheet perspective. And this past year has obviously been tremendous in terms of what we've been able to do with the balance sheet from an inventory and from a receivables perspective.

我們確實有——抱歉，我們確實有一個非常好的現金產生季度。我們看待自由現金流的方式實際上是試圖根據我們非 GAAP 淨收入的百分比來看待它。我們相信這可以是 1:1。它會反彈。根據我們從資產負債表的角度所做的工作，某些季度可能會好一些。就我們能夠從庫存和應收賬款角度對資產負債表所做的工作而言，過去一年顯然是巨大的。

Also that tax item, which was about $18 million, was another benefit here in the year. So as we go forward, our target is really to try and get our free cash flow to essentially equal our non-GAAP net income.

此外，該稅項約為 1800 萬美元，是該年度的另一項收益。因此，在我們前進的過程中，我們的目標實際上是努力讓我們的自由現金流基本上等於我們的非 GAAP 淨收入。

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

我們的下一個問題來自 Tom O'Malley 與 Barclays 的合作。

My first one is really about the September quarter. Clearly, you saw some additional strength in data center than when you initially set out during the quarter. Can you talk about where you saw that additional strength that got you to that really robust quarter, particularly if it's strength in a certain geography or in a certain product type?

我的第一個真的是關於九月季度的。顯然，與您最初在本季度開始時相比，您在數據中心看到了一些額外的優勢。你能談談你在哪裡看到了讓你進入那個真正強勁的季度的額外優勢，特別是如果它在特定地理區域或特定產品類型中具有優勢嗎？

Yes, certainly. And so we actually saw strength pretty much across the board with our 100G products, whether it's CWDM4, DR1. We actually, as we announced a quarter ago, we began initial shipments with our 100G PAM4 DSP. So that began to contribute in a modest way, but it was contributing to the growth. And also, we were seeing an uptick in our -- some of our short-reach platforms that we service. Most of those platforms are U.S.-driven demand, data center demand from the U.S. side. And then on the international side, we saw improved revenues or increased revenues from some new customers, mostly on 25G and 100G analog solutions also for Asia-based data centers.

是的，當然了。因此，我們實際上看到了 100G 產品的全面優勢，無論是 CWDM4、DR1。事實上，正如我們在一個季度前宣布的那樣，我們已經開始使用我們的 100G PAM4 DSP 進行首次發貨。因此，這開始以適度的方式做出貢獻，但它正在為增長做出貢獻。而且，我們看到我們服務的一些短距離平台有所增加。這些平台大部分是美國驅動的需求，來自美國方面的數據中心需求。然後在國際方面，我們看到一些新客戶的收入增加或增加，主要是針對亞洲數據中心的 25G 和 100G 模擬解決方案。

So we're very happy about that. I mean our data center end market has been growing for 5 sequential quarters. It is an area that -- it's a very interesting area for MACOM. I can tell you that the growth areas over the next 2 to 3 years will include not only the products, sort of next-generation products on the analog side, but we also have set our targets on supporting the data center with our next-generation lasers. And we've made tremendous progress on our laser development technology, and I'll maybe take a moment to explain.

所以我們對此感到非常高興。我的意思是我們的數據中心終端市場已經連續 5 個季度增長。這是一個領域——對 MACOM 來說是一個非常有趣的領域。我可以告訴你，未來 2 到 3 年的增長領域將不僅包括產品，模擬方面的下一代產品，而且我們還設定了我們的下一代支持數據中心的目標。激光。我們在激光開發技術方面取得了巨大進步，我可能會花點時間解釋一下。

As everybody knows, we announced about 2 quarters ago, our 25G FP laser, which was really the first next-generation laser that our team had developed. And the back story on that work is that we actually have been reengineering our entire laser design so that it would be more manufacturable, it would be a platform-based design. And we -- while doing this, improved overall performance and robustness and reliability of the laser platform. And the 25G FP laser was really the first product, really the flagship product out the door, which we're targeting fronthaul, 5G fronthaul with.

眾所周知，大約兩個季度前，我們宣布了我們的 25G FP 激光器，這實際上是我們團隊開發的第一款下一代激光器。這項工作的背景是，我們實際上一直在重新設計我們的整個激光設計，以便它更易於製造，這將是一個基於平台的設計。我們——在這樣做的同時，提高了激光平台的整體性能、穩健性和可靠性。 25G FP 激光器確實是第一個產品，真正的旗艦產品，我們的目標是前傳，5G 前傳。

Now why is that part important? Because it validated our approach to move towards 25G DFB lasers. And this is -- and so as you may have seen in one of our announcements back in September, we demonstrated at CIOE, a whole family of 25G DFB lasers. And we began to introduce our platform to, not only 5G customers, but also, we started to gain interest from our data center customers at the same time.

現在為什麼那部分很重要？因為它驗證了我們轉向 25G DFB 激光器的方法。這是 - 正如您在 9 月份的一項公告中看到的那樣，我們在 CIOE 上展示了整個 25G DFB 激光器系列。我們開始向 5G 客戶介紹我們的平台，同時我們開始引起數據中心客戶的興趣。

What's interesting here is the platform that we've developed is scalable. So as you start to look at the 5G networks, each one of the operators that's rolling out these networks is certainly using a different modulation scheme. Some use CWDM6, some sue MWDM12 or DWDM 16 if you're in Korea, for example. And so what all that means is there's a lot of different wavelengths that need to be created to support 5G. And so the work we did, which allows us to have a scalable platform to address all these different wavelength has been done. And we are in the process of working through the qualification and starting to do our initial sampling with our customers so that we can capture some of the 5G opportunity.

這裡有趣的是我們開發的平台是可擴展的。因此，當您開始關注 5G 網絡時，每家推出這些網絡的運營商肯定都在使用不同的調製方案。例如，如果您在韓國，有些使用 CWDM6，有些使用 MWDM12 或 DWDM 16。因此，這意味著需要創建許多不同的波長來支持 5G。因此，我們所做的工作使我們能夠擁有一個可擴展的平台來處理所有這些不同的波長。我們正在通過資格認證並開始與客戶一起進行初步抽樣，以便我們能夠抓住一些 5G 機會。

But what's most interesting is some of these wavelengths, specifically the CWDM6 wavelengths, also have the same wavelength that you see in the data center, and it's the same device. And so we are really excited to finish the work that we're doing, which we'll be talking about more on our next conference call and really into the spring. But I have to say that the team here has done just a phenomenal job putting together a platform that we believe is scalable, not only for 5G, but also, it will allow us to reenter the data center with a very compelling product.

但最有趣的是其中一些波長，特別是 CWDM6 波長，也與您在數據中心看到的波長相同，而且是同一台設備。因此，我們真的很高興能完成我們正在做的工作，我們將在下一次電話會議上討論更多，直到春天。但我不得不說，這裡的團隊完成了一項非凡的工作，將我們認為可擴展的平台組合在一起，不僅適用於 5G，而且它將使我們能夠以非常引人注目的產品重新進入數據中心。

Great. That's really helpful color. My next one is for Jack. I'm looking at the margins here, and you guys haven't touched these levels really since the end of December '18. And along with the gross margin ramp, you've really seen some nice revenue growth as well. But looking into December, from a sequential basis, you're not seeing as much revenue growth as you've seen over the past couple of quarters, but you're seeing that expansion in gross margin. And you're also kind of guiding to more industrial and defense, which is traditionally a little lower gross margin than your other segments. Can you walk us through how you're getting that gross margin incremental improvement quarter-over-quarter when you have 2 pieces that are kind of not going in your favor?

偉大的。那是非常有用的顏色。我的下一個是給傑克的。我正在看這裡的利潤率，自 18 年 12 月末以來，你們還沒有真正觸及過這些水平。隨著毛利率的上升，你也確實看到了一些不錯的收入增長。但展望 12 月，從連續的基礎上看，你並沒有看到過去幾個季度那樣多的收入增長，但你看到了毛利率的擴張。而且你也在某種程度上引導更多的工業和國防，傳統上這比你的其他部門的毛利率略低。當你有 2 件對你不利的事情時，你能告訴我們你是如何獲得季度環比毛利率增量改善的嗎？

Sure. Thanks for that, Tom. So in terms of our gross margin expansion that we've got going into our December quarter, there's a number of things that come into play. And a lot of the improvement that we've seen over the past year has really been a lot of operational efficiencies that have been taking place throughout the organization that have been contributing to that improving margin. We've talked about some of the scrap processes that we put in place to monitor and to reduce variances. So there's things that are happening across the organization that are driving that.

當然。謝謝你，湯姆。因此，就我們進入 12 月季度的毛利率擴張而言，有很多因素在起作用。我們在過去一年中看到的許多改進實際上是整個組織中發生的許多運營效率，這有助於提高利潤率。我們已經討論了我們為監控和減少差異而實施的一些報廢流程。因此，整個組織正在發生的事情正在推動這一點。

And I know you had touched upon the improvement in the I&D revenue going into our December quarter, I wouldn't read too far into that in terms of that driving the margin mix. It's really a combination of a number of different things that we've got going on throughout the organization that have allowed us to improve those margins. And as we look at this, looking longer term, we want to get back to some of those higher gross margins that we had, which were in the high 50s, going back a few years. And once we get to those higher levels, goal is to eventually exceed those. Steve, I don't know if you've got any further comments on our margin improvements.

而且我知道你已經談到了進入我們 12 月季度的 I&D 收入的改善，我不會在推動利潤率組合方面讀得太遠。這實際上是我們在整個組織中進行的許多不同事情的結合，這些事情使我們能夠提高這些利潤率。當我們審視這一點時，從長遠來看，我們希望回到幾年前的 50 多歲的高毛利率。一旦我們達到更高的水平，目標就是最終超越這些水平。史蒂夫，我不知道你是否對我們的利潤率改善有任何進一步的評論。

Well, I'll just make a couple of comments. I think people are starting to notice the improvements, and the team here has really done just a phenomenal job, as you pointed out. I'll also just add that inside of engineering, we are really raising the bar on overall performance. And I highlighted one of the parts that's really a best-in-class part, which is our 2.6-kilowatt device. And so there's not many companies that, a, can and work with products at such high-power levels. And so when you walk into a defense OEM and you put a product like that on the table, it creates all sorts of interest in and around the things you're doing.

好吧，我只會發表一些評論。我認為人們開始注意到這些改進，正如您所指出的，這裡的團隊確實做得非常出色。我還要補充一點，在工程內部，我們確實提高了整體性能的標準。我強調了其中一個真正一流的部件，即我們的 2.6 千瓦設備。因此，沒有多少公司可以使用如此高功率水平的產品。因此，當你走進一家國防 OEM 並將這樣的產品放在桌面上時，它會在你所做的事情中和周圍產生各種興趣。

And ultimately, that drives very high-end opportunities that command very strong pricing. And so you'll certainly start to see more and more of that. Part of our strategic plan is to raise the bar and to go after high performance, non-commodity type applications. And by the way, I'll just add to that, a lot of the business that we've had this past year regarding our 5G fronthaul products, these are very high-end products. You're talking about extremely, high speed, complex devices, dual CDRs, power management, all sorts of diagnostics, built-in testing capabilities. These are fairly sophisticated devices that have very strong price points. And so it really is a testament to the work that our team and engineering is doing to develop chips that can demand higher prices.

最終，這推動了非常高端的機會，這些機會需要非常高的定價。所以你肯定會開始看到越來越多的東西。我們戰略計劃的一部分是提高標準並追求高性能、非商品類型的應用程序。順便說一句，我只想補充一點，過去一年我們在 5G 前傳產品方面的很多業務，這些都是非常高端的產品。你談論的是極度、高速、複雜的設備、雙 CDR、電源管理、各種診斷、內置測試功能。這些是相當複雜的設備，具有非常高的價格點。因此，這確實證明了我們的團隊和工程部門正在為開發可以要求更高價格的芯片所做的工作。

I'll also add to that, that our MMIC and diode teams have also been taking a critical look at the sales strategies in and around some of the legacy business, and they've come to recognize that there are opportunities to expand and do a little bit better job with the pricing and some of that will certainly contribute. But we also think we have a fair way to go on the gross margin. We are delighted that it's moving in the right direction.

我還要補充一點，我們的 MMIC 和二極管團隊也一直在批判性地審視一些傳統業務內部和周圍的銷售策略，他們已經認識到有機會擴展和做一個在定價方面做得更好一些，其中一些肯定會有所貢獻。但我們也認為我們有一個公平的方法來提高毛利率。我們很高興它正朝著正確的方向前進。

Certainly, once you get above 60% gross margin, it becomes more about running an efficient operation with products that command very high price points. And to do that, you have to rely on either proprietary processes, which we can do because we have 2 foundries, or best-in-class design talent using third-party foundries, which we also can do. So I do think there's opportunities to grow on the gross margin side.

當然，一旦您的毛利率超過 60%，就更需要以高價位的產品進行高效運營。要做到這一點，您必須依靠專有流程，我們可以做到這一點，因為我們有 2 個代工廠，或者使用第三方代工廠的一流設計人才，我們也可以做到。所以我確實認為毛利率方面有增長的機會。

And certainly, I'll just sort of coming back to my commentary on the lasers, these are generally die sales that are in very high-volume. And so there's tremendous opportunities for gross margin expansion as these products start to come to production.

當然，我會回到我對激光的評論，這些通常是非常大批量的模具銷售。因此，隨著這些產品開始投產，毛利率將有巨大的增長機會。

Our next question coming from the line of Karl Ackerman with closing column.

我們的下一個問題來自 Karl Ackerman 的閉幕專欄。

Two questions, if I may. Jack, one for you. How should we think about the -- how the $20 million headwind from Huawei abates on a linear basis throughout the fiscal 2021? And I have a follow-up.

兩個問題，如果可以的話。傑克，一個給你。我們應該如何考慮——來自華為的 2000 萬美元逆風如何在整個 2021 財年線性減弱？我有一個後續行動。

Thanks for that. In terms of how that's going to play out, I mean, it's pretty much linear throughout the year. I mean, I wouldn't think it's going to be that much -- too lumpy as you look back over the past year. And once again, that may include some others that were on the entity list. It's not just limited to Huawei. But Huawei would probably represent a majority of that $20 million that Steve referred to earlier. Steve, would you like to add?

感謝那。就這將如何發揮作用而言，我的意思是，它全年幾乎都是線性的。我的意思是，我不認為它會那麼多——當你回顧過去的一年時，它太崎嶇不平了。再一次，這可能包括實體列表中的一些其他人。不僅限於華為。但華為可能佔史蒂夫之前提到的 2000 萬美元的大部分。史蒂夫，你想補充嗎？

Yes. The only thing I'll add to that is, and I'll come back to our underlying theme, which is we plan to outgrow the loss of that $20 million of revenue by introducing more new products faster and winning market share. So we think we have a good plan for this year to kind of push right through that. The loss of those revenues are obviously baked into our Q1 numbers today.

是的。我唯一要補充的是，我將回到我們的基本主題，即我們計劃通過更快地推出更多新產品和贏得市場份額來彌補那 2000 萬美元的收入損失。所以我們認為我們今年有一個很好的計劃來推動這一點。這些收入的損失顯然已經反映在我們今天的第一季度數據中。

So -- and all of those customers have been driven to 0. So we're not expecting any upside for any of those companies. So it really comes back to our ability to launch more products faster. And by the way, there may be, in some instances, where other OEMs pick up some of that market share. And so to the extent that happens and we're able to support them, maybe there's an opportunity there.

所以——所有這些客戶都被推到了 0。所以我們預計這些公司中的任何一家都不會有任何好處。所以這真的回到了我們更快推出更多產品的能力。順便說一句，在某些情況下，其他原始設備製造商可能會獲得部分市場份額。因此，在這種情況發生並且我們能夠支持他們的情況下，也許那裡有機會。

But the real growth story for MACOM is new products. And our 6 engineering organizations are really just doing a super job, pushing products out the door, engaging the customers. And so I would just not focus on the loss of the $20 million. I would really focus on, what are the new things coming out? Are the products competitive? And I think that will really make you understand why we're going to grow through it.

但 MACOM 真正的增長故事是新產品。我們的 6 個工程組織確實做得非常出色，將產品推向市場，吸引了客戶。所以我不會關注 2000 萬美元的損失。我真的會關注，有什麼新東西出來了？產品有競爭力嗎？我認為這真的會讓你明白為什麼我們要通過它成長。

Sure. No, helpful color. Steve, previously, you mentioned that while you completed your PAM4 100-gig DSP design, you still need to intersect a design cycle until you receive revenue from that. One of your peers tonight just spoke about how PAM4 demand has been pushed out a bit, which I think should help you now bring up your design capabilities and kind of intersect that market. Is there a way to think about the cadence of your DSP road map that could perhaps increase your competitive capabilities and also substantiate your long-term value to that customer base?

當然。不，有用的顏色。 Steve，之前，您提到當您完成 PAM4 100-gig DSP 設計時，您仍然需要交叉設計週期，直到您從中獲得收入。今晚你們的一位同行剛剛談到了 PAM4 需求是如何被推遲的，我認為這應該有助於你們現在提高你們的設計能力，並在某種程度上與那個市場相交。有沒有一種方法可以考慮您的 DSP 路線圖的節奏，這可能會提高您的競爭能力並證實您對該客戶群的長期價值？

Sure. And I'm glad you asked that question, so I want to be clear on a few points. So we are not investing in new DSP designs. We announced that strategy about a year ago, when Jack and I took over. And so what we've communicated was that we would finish some of the projects that were in-flight and bring them over -- bring them to conclusion and then bring them to market if they would be competitive.

當然。很高興你問了這個問題，所以我想澄清幾點。所以我們不會投資於新的 DSP 設計。大約一年前，我和傑克接手時，我們宣布了這一戰略。因此，我們所傳達的是，我們將完成一些正在進行的項目並將它們帶過來——讓它們結束，然後在它們具有競爭力的情況下將它們推向市場。

We do have an instance where we have 100G PAM4 DSP, where we have direct relations with a major OEM, and we are in production with them on that part. We will have some sister parts, we call them PRISM. We have essentially another part that we will use and bring to market to try to capture some market share. These are generally 400G DR1 applications. And by the way, when there's the 400G breakout, it should actually help drive some of the 100G DR1 volume for MACOM. And then the other thing I'll highlight is we will be taking the platform that we have today, and we'll be targeting midhaul for 5G, which is running at 50 gigs per second.

我們確實有一個例子，我們有 100G PAM4 DSP，我們與主要 OEM 有直接關係，我們正在與他們一起生產這部分。我們會有一些姊妹部分，我們稱之為 PRISM。我們基本上還有另一部分，我們將使用並將其推向市場，以試圖佔領一些市場份額。這些通常是 400G DR1 應用程序。順便說一句，當出現 400G 突破時，它實際上應該有助於為 MACOM 驅動一些 100G DR1 容量。然後我要強調的另一件事是我們將採用我們今天擁有的平台，我們將以 5G 的中程為目標，它以每秒 50 次的速度運行。

So I just want to be clear that we're not going to continue to develop new silicon. We are going to productize and create derivative products in and around the technology we have. And what we'll do with those design resources and the IP around the PAM4 universe, let's say, is we'll apply it to other areas where we can be very successful. And so we're actually quite excited to do that.

所以我只想明確一點，我們不會繼續開發新的芯片。我們將圍繞我們擁有的技術進行產品化和創造衍生產品。我們將使用這些設計資源和圍繞 PAM4 宇宙的 IP 做些什麼，比方說，我們將把它應用到我們可以非常成功的其他領域。所以我們真的很高興能做到這一點。

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

我們的下一個問題來自 C.J. Muse with Evercore。

I guess first question, Steve, you talked about wanting to grow more than 10% in fiscal '21. And just curious if you could send some light on where you see greater growth on a segment basis. And then also within that, on the telecom side, what kind of assumptions are you making in terms of the timing and magnitude of a 5G recovery?

我想第一個問題，史蒂夫，你談到想要在 21 財年增長超過 10%。只是好奇您是否可以發送一些信息，說明您在細分市場上看到更大增長的地方。然後也在其中，在電信方面，您對 5G 恢復的時間和幅度做出什麼樣的假設？

So I think all 3 of our end markets will grow this year, number one. And we are being cautiously optimistic with when 5G comes back online for us. We think that's most likely sometime late in Q2 or early Q3 when things start to really move. Because of that and because of the backlog and some of the other markets that are reasonably strong right now, primarily I&D and some other parts of the data center market that are still doing quite well, we think the first half will still be very strong. And we think we'll end or start to accelerate on the back half of '21 when the 5G market kicks into gear. And by the way, when it does kick into gear, as I highlighted, we hope to have additional new content in some of the platforms primarily on the optical side.

所以我認為今年我們所有的 3 個終端市場都將增長，排名第一。我們對 5G 何時為我們重新上線持謹慎樂觀的態度。我們認為這很可能是在第二季度末或第三季度初的某個時候，事情開始真正發生變化時。因此，由於積壓和其他一些目前相當強勁的市場，主要是 I&D 和數據中心市場的其他一些部分仍然表現良好，我們認為上半年仍將非常強勁。我們認為，當 5G 市場啟動時，我們將在 21 世紀後半段結束或開始加速。順便說一句，正如我強調的那樣，當它真正啟動時，我們希望在一些主要在光學方面的平台上有更多的新內容。

Very helpful. If I could follow-up on Tom's gross margin question. You had been kind of suggesting, at least externally, maybe not internally, trying to hit 57% in the back half of fiscal '21. And here, we're seeing that in the December quarter. So I guess, should we be thinking an exit rate that's now higher than this level? And I guess is there anything mix-wise that is a benefit in the December quarter that we should be thinking about?

很有幫助。如果我可以跟進湯姆的毛利率問題。你一直在暗示，至少在外部，也許不是在內部，試圖在 21 財年的後半段達到 57%。在這裡，我們在 12 月季度看到了這一點。所以我想，我們是否應該考慮現在高於這個水平的退出率？我想我們應該考慮在 12 月季度有什麼好處？

Yes. Maybe we should try to answer that in 2 parts. I'll say a few words and then Jack can help. So our gross margin very much depends on mix. So there is always uncertainty around mix as you went through the forward quarter. So we can't say with specificity exactly what our margins might be in Q3 or Q4. With that said, we like the trends. We like the things that we're doing. We talked about the strength of the product line, improving. Our operations team has done a phenomenal job with yield enhancement programs. The SIOP program that Jack mentioned is actually driving costs down as well. And we're getting better efficiency out of our fab.

是的。也許我們應該嘗試分兩部分來回答這個問題。我會說幾句話，然後傑克可以幫忙。所以我們的毛利率在很大程度上取決於組合。因此，當你經歷前季度時，混合總是存在不確定性。所以我們不能具體地說出我們在第三季度或第四季度的利潤率是多少。話雖如此，我們喜歡趨勢。我們喜歡我們正在做的事情。我們談到了產品線的實力，不斷改進。我們的運營團隊在提高產量計劃方面做得非常出色。 Jack 提到的 SIOP 計劃實際上也在降低成本。我們的工廠效率越來越高。

So when you line all these things up, you see improvements. And we would much rather deliver improved gross margins than give you a number that we might fall short of. So Jack, maybe you can add to that.

因此，當您將所有這些東西排列起來時，您會看到改進。我們寧願提高毛利率，也不願給你一個我們可能達不到的數字。所以傑克，也許你可以補充一下。

Yes. CJ, so obviously, going back to kind of that 57% number, that is at the midpoint of our guide going into Q1. So with the -- some of the sequential improvements that we're looking for and also depending on mix, that would obviously take that exit rate for fiscal year '21 up a notch or 2.

是的。 CJ，很明顯，回到那個 57% 的數字，這是我們進入第一季度的指南的中點。因此，隨著 - 我們正在尋找的一些連續改進，也取決於組合，這顯然會使 21 財年的退出率提高一個或 2 個等級。

Our next question is coming from the line of Ruben Roy with Benchmark.

我們的下一個問題來自 Ruben Roy 與 Benchmark 的合作。

Jack, maybe we could just continue on that line of questioning. And maybe just to move down to the OpEx. You guys did a great job, and you talked about a lot of the strategic initiatives you're taking to manage expenses. In the context of looking out towards the 10%-plus growth into fiscal '21. Can you give us a little bit of an idea of how you're thinking about your spending with that type of growth in mind?

傑克，也許我們可以繼續提問。也許只是為了轉向 OpEx。你們做得很好，你們談到了你們為管理費用而採取的許多戰略舉措。在展望 21 財年 10% 以上的增長的背景下。考慮到這種增長，你能告訴我們你是如何考慮你的支出的嗎？

Sure. We've been very disciplined, as I've mentioned, in terms of looking at all of our OpEx spending throughout the organization and trying to balance the R&D investments that go along with that -- within the R&D section of our operating expense. So it's been a very rewarding progress that we've gone through over the past year in terms of the improvements that we've made. We've forecasted here in the fourth quarter that there'd be a bit of an uptick just based on the timing of some of those R&D expenses and those investments that we were making. So that will work its way through some of the operating expense items that we've got out there.

當然。正如我所提到的，我們在查看整個組織的所有 OpEx 支出並試圖平衡與之相關的研發投資方面非常有紀律——在我們運營費用的研發部分內。因此，就我們所做的改進而言，我們在過去一年中取得了非常有益的進展。我們在第四季度預測，僅根據其中一些研發費用和我們正在進行的投資的時間安排，就會有所上升。因此，這將通過我們在那裡獲得的一些運營費用項目發揮作用。

But we -- same thing with some of the things that we've been doing from an operational perspective in terms of continuous improvements. We're looking to do some of those same things within our G&A and sales and marketing areas to help try and make sure we're doing things more efficiently, which are, in turn, supporting some of those R&D expenses that we have going forward.

但是我們 - 從持續改進的角度來看，我們一直在做的一些事情也是如此。我們希望在我們的 G&A 以及銷售和營銷領域內做一些相同的事情，以幫助嘗試並確保我們做事更有效率，這反過來又支持了我們未來的一些研發費用.

But having said all that, there is that natural tendency for operating expenses to creep up. Obviously, things have been a little bit dampened down by some of the COVID restrictions that are out there from a travel point of view. So hopefully, over time, we'll be able to travel a bit more, so that might cause some of those operating expenses to creep up as we work our way throughout the year.

但話雖如此，運營費用卻有攀升的自然趨勢。顯然，從旅行的角度來看，一些 COVID 限制已經使情況有所緩和。因此，希望隨著時間的推移，我們能夠多出差一些，這樣一來，隨著我們全年按自己的方式工作，這可能會導致其中一些運營費用攀升。

The other area that we've been focused on, not only from an operating expense perspective is also some of our capital investments. If you look at where we were for the year, fiscal year '20, we came in around $18 million of CapEx. Going back to prior years, we were way in excess of $30 million. So we've been very focused on all of our spend throughout the organization and making sure we're doing it prudently, and making sure any dollars that we're investing in the business, we're getting the appropriate returns. You add on, sorry.

我們一直關注的另一個領域，不僅從運營費用的角度來看，也是我們的一些資本投資。如果你看看我們今年的情況，20 財年，我們的資本支出約為 1800 萬美元。回顧往年，我們的收入遠遠超過 3000 萬美元。因此，我們一直非常關注整個組織的所有支出，並確保我們謹慎行事，並確保我們投資於業務的任何資金都能獲得適當的回報。你補充一下，對不起。

Yes, I'll just make -- if I may just make one comment, especially on the capital side. So as we talked about on the prepared remarks, we are very much focused on maximizing the utilization of our fab and making it run more efficiently and having newer and better equipment in the fab. So as part of our planning process for this year. We certainly earmarked a capital for our fabs. And that shouldn't scare people because in our -- we're not talking about tens or hundreds of millions of dollars. We're talking about this year, probably a capital investment for our low fab here in the range of $5 million to $8 million, which will certainly keep us in line with reasonable overall CapEx spending.

是的，我會做——如果我可以只發表一個評論，尤其是在資本方面。因此，正如我們在準備好的評論中談到的那樣，我們非常專注於最大限度地提高晶圓廠的利用率，使其運行更高效，並在晶圓廠中擁有更新更好的設備。因此，作為我們今年規劃過程的一部分。我們當然為我們的晶圓廠指定了一筆資金。這不應該嚇到人們，因為在我們 - 我們不是在談論數千萬或數億美元。我們談論的是今年，我們這裡的低晶圓廠的資本投資可能在 500 萬至 800 萬美元之間，這肯定會讓我們與合理的整體資本支出保持一致。

But it's such an important point to make because one thing that Jack and his team have done quite well is focused on return on capital employed. And that is absolutely something we'd look at, whether it's buying test equipment, whether we're looking at changing out a piece of equipment in the fab. And so we have really instilled a very nice discipline in and around the business units as well as the operations to look at the overall returns on some of these big investments.

但這一點非常重要，因為傑克和他的團隊做得很好的一件事就是專注於所用資本的回報率。這絕對是我們要考慮的事情，無論是購買測試設備，還是我們正在考慮更換工廠中的一件設備。因此，我們確實在業務部門以及業務部門內部和周圍灌輸了非常好的紀律，以查看其中一些大型投資的總體回報。

It's very helpful. If I could ask a quick follow-up. Steve, you had a lot of commentary around PON and sort of the additional products that you guys have worked on. Is there a way to think about the content opportunity or maybe even higher level -- the TAM opportunity, I forget what 2.5G PON was at its peak, maybe $100 million to $200 million market. Do you have an idea if we get to 10 million GPON units, 10-gig GPON units with 4 or 5 parts in the box, what could the market opportunity look like?

這非常有幫助。如果我可以問一個快速跟進。史蒂夫，你對 PON 和你們開發的其他產品發表了很多評論。有沒有辦法考慮內容機會或更高層次的機會——TAM 機會，我忘記了 2.5G PON 處於巔峰時期，可能是 1 億到 2 億美元的市場。您是否知道，如果我們達到 1000 萬個 GPON 單元，10 千兆 GPON 單元，盒子裡有 4 或 5 個部件，市場機會會是什麼樣子？

Well, at a very, very high level in the range of $200 million a year. And that assumes somewhere in the range of 5 million optical line terminals or what they call OLTs, and maybe about 25 million ONUs, which are the customer premise end. So it sounds like a very big and attractive number, right? So -- but today, we have little or no market share. And this is what we're aiming at. And we think it's in our wheelhouse. We have the technology. We have the customer relationships, and we're working on the designs. So it's a great market. It's a MACOM market. It's something that we think we can be very strong on. And by the way, I'll point out, there are other -- there's really one other U.S. competitor that we deal with here that's been very successful in this market. And we plan on moving in with better products and winning market share. So we still have a lot of work to do, but we are making slow progress bit by bit.

好吧，在每年 2 億美元的範圍內非常非常高的水平。這假設在 500 萬個光線路終端或他們所謂的 OLT 範圍內，可能還有大約 2500 萬個 ONU，即客戶端。所以這聽起來是一個非常大且有吸引力的數字，對吧？所以 - 但今天，我們的市場份額很小或沒有。這就是我們的目標。我們認為它在我們的駕駛室內。我們有技術。我們有客戶關係，我們正在研究設計。所以這是一個很大的市場。這是一個 MACOM 市場。這是我們認為我們可以非常強大的事情。順便說一句，我要指出的是，還有其他 - 我們在這里處理的另一個美國競爭對手在這個市場上非常成功。我們計劃推出更好的產品並贏得市場份額。所以我們還有很多工作要做，但我們正在一點一點地緩慢進步。

Your final question coming from the line of Quinn Bolton with Needham & Company.

你的最後一個問題來自 Quinn Bolton 與 Needham & Company 的合作。

Steve, wanted to come back to the guidance you gave for the December quarter with the industrial business up and telecom and data center both down about 10%. I know you're not going to give guidance for March, but do you think that -- is the data center sort of a 1, 2 quarter period digestion? Do you think it's a fairly temporary pause? Just wondering, you gave us -- telecom was probably a kind of end of the second quarter, fiscal second quarter, I assume before you might see that recovery. But just wondering any thoughts on data center, how long that period of digestion might last.

史蒂夫，想回到你給出的 12 月季度的指導，工業業務增長，電信和數據中心均下降約 10%。我知道你不會為 3 月份提供指導，但你認為 - 數據中心是一種 1、2 季度的消化嗎？你認為這是一個相當短暫的暫停嗎？只是想知道，你給了我們 - 電信可能是第二季度末，第二財季，我想你可能會看到復蘇。但只是想知道對數據中心的任何想法，消化期可能會持續多久。

So it's a very difficult question to answer. And we certainly, for our largest customers, have very good visibility. And by the way, typically, the lead times in the manufacturing -- I should say, the manufacturing times for these products is -- extends over 1 quarter. So we have to make certain assumptions about where we think the market will be before we start inventory. But I really can't answer your question. It's very difficult to say what might happen to the data center market, let's say, in Q3 or Q2 or even Q4.

所以這是一個很難回答的問題。對於我們最大的客戶，我們當然有很好的知名度。順便說一下，通常情況下，製造的交貨時間——我應該說，這些產品的製造時間是——超過 1 個季度。因此，在我們開始盤點之前，我們必須對我們認為市場的位置做出某些假設。但我真的無法回答你的問題。很難說數據中心市場會發生什麼，比方說，在第三季度或第二季度甚至第四季度。

So I want to sort of not answer that question right now. With that said, I think it's going to be a good year for the overall market. And we are, as I pointed out, picking up new customers in Asia. It's a new line of revenue. We are starting to ship our PAM4 DSP. So that's a new color of revenue there. And clearly, there's an increasing demand for data due to COVID, and there's a secular tailwind that we're seeing and enjoying.

所以我現在不想回答這個問題。話雖如此，我認為這對整個市場來說將是豐收的一年。正如我所指出的，我們正在亞洲尋找新客戶。這是一條新的收入線。我們開始發貨我們的 PAM4 DSP。所以這是一種新的收入顏色。顯然，由於 COVID，對數據的需求不斷增加，而且我們正在看到並享受著長期的順風。

So when we now layer on top of that, some of the new products, including some of our 400G products that are, in some instances, best-in-class, when we start to introduce our lasers towards the back half of calendar '21, I think we're setting ourselves up for some good growth.

因此，當我們現在最重要的是，一些新產品，包括我們的一些 400G 產品，在某些情況下，當我們開始在日曆 '21 的後半段推出我們的激光器時，這些產品在某些情況下是一流的，我認為我們正在為一些良好的增長做好準備。

Got it. And then second question, just a follow-up on the lasers. Are most of the 5G fronthaul lasers, the FP lasers? Or are you going to need the DFB lasers also for some of those fronthaul applications? It sounded from your comments in the script that it was going to be a mix of both FP and DFB lasers and fronthaul, but I just wanted to clarify that.

知道了。然後是第二個問題，只是關於激光的後續問題。大部分5G前傳激光器都是FP激光器嗎？或者您是否也需要 DFB 激光器用於某些前傳應用？從您在腳本中的評論來看，這將是 FP 和 DFB 激光器以及前傳的混合體，但我只是想澄清一下。

Well, I would say that you're going to need both. And in fact, the DFB lasers are more important because they handle -- they have better overall temperature performance. They're allowing you to run higher distances. And there are also -- there's new requirements that have come out. So CWDM6 and MWDM12, these really need to be DFB lasers. And so the work and the platform that we've established will allow us to be successful there. Remember that our 25G FP laser is a single wavelength laser for a very particular application.

好吧，我會說你將需要兩者。事實上，DFB 激光器更為重要，因為它們具有更好的整體溫度性能。他們讓你跑得更遠。還有——已經出現了新的要求。所以 CWDM6 和 MWDM12，這些確實需要 DFB 激光器。因此，我們建立的工作和平台將使我們能夠在那裡取得成功。請記住，我們的 25G FP 激光器是用於非常特殊應用的單波長激光器。

And so we'll be successful there. But I would say that on balance, the work that we're doing to create this platform is more important, and it opens up more of the market for us.

所以我們會在那裡取得成功。但我想說，總的來說，我們為創建這個平台所做的工作更為重要，它為我們打開了更多的市場。

I'm not showing any further questions at this time. I would now like to turn the call back over to Mr. Daly for closing remarks.

我現在不顯示任何進一步的問題。我現在想把電話轉回給戴利先生作結束語。

Thank you. In closing, Jack and I would like to thank our employees for their extraordinary efforts and accomplishments throughout the past quarter and fiscal 2020. Thank you, and good evening.

謝謝。最後，傑克和我要感謝我們的員工在過去一個季度和 2020 財年所做的非凡努力和取得的成就。謝謝，晚上好。

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

女士們，先生們，我們今天的會議到此結束。感謝您的參與。你們都可以斷開連接。