MACOM Technology Solutions Holdings Inc (MTSI) 2020 Q3 法說會逐字稿

Good afternoon and welcome to MACOM's Third Fiscal Quarter 2020 Conference Call. This conference call is being recorded today, Wednesday, July 29, 2020. (Operator Instructions)

下午好，歡迎來到 MACOM 的 2020 財年第三季度電話會議。本次電話會議將於今天（2020 年 7 月 29 日，星期三）進行錄製。（操作員說明）

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

我現在將電話轉給 MACOM 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, operator. Good afternoon, and welcome to MACOM's Third Fiscal Quarter 2020 Earnings Conference Call.

謝謝你，運營商。下午好，歡迎來到 MACOM 的 2020 財年第三季度收益電話會議。

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.

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結果大不相同。

For more detailed discussions 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 within 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。公司的新聞稿和相關的 8-K 表格今天提交給美國證券交易委員會，提供了 GAAP 與調整後的非 GAAP 結果的對賬。

With that, I will 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 third quarter financial results for fiscal year 2020. When Jack is finished, I will provide revenue and earnings guidance for Q4, and then we would be happy to take some questions.

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 財年第三季度的財務業績進行更深入的審查。傑克結束後，我將提供第四季度的收入和收益指導，然後我們很樂意回答一些問題。

Revenue for our third fiscal quarter was $137.3 million and adjusted EPS was $0.33 per diluted share. We are pleased with these results, and we are pleased that demand for our products continues to increase, primarily from the Data Center and Telecom markets. Equally important, as Jack will discuss later, our Q3 gross margins have improved, and our operating expenses were well controlled, and the net result was continued improvement at profitability and cash generation.

我們第三財季的收入為 1.373 億美元，調整後每股收益為 0.33 美元。我們對這些結果感到滿意，並且我們很高興對我們產品的需求持續增加，主要來自數據中心和電信市場。同樣重要的是，正如傑克稍後將討論的那樣，我們第三季度的毛利率有所提高，我們的運營費用得到了很好的控制，最終結果是盈利能力和現金生成能力持續提高。

Notably, our operating margin exceeded 20% for the first time since 2017. Our strategy is to execute on product and technology developments so that we may take full advantage of the growth opportunities in front of us, while also improving profitability. Q3 revenue by end market was as follows: Data Center was $32.4 million; Telecom was $56.8 million; and Industrial & Defense was $48 million.

值得注意的是，我們的營業利潤率自 2017 年以來首次超過 20%。我們的戰略是執行產品和技術開發，以便我們可以充分利用擺在我們面前的增長機會，同時提高盈利能力。第三季度終端市場收入如下：數據中心為 3240 萬美元；電信為 5680 萬美元；工業與國防為 4800 萬美元。

Data Center and Telecom had sequential growth rates of 21% and 10%, respectively, while our Industrial & Defense business was essentially flat. On a geographic basis, approximately 40% of third quarter revenue was from domestic customers and 60% was from international customers.

數據中心和電信的連續增長率分別為 21% 和 10%，而我們的工業和國防業務基本持平。按地域劃分，第三季度約 40% 的收入來自國內客戶，60% 來自國際客戶。

Our book-to-bill ratio was approximately 1.4:1. In our turns business, or business booked and shipped within the quarter, was approximately 25% of total revenue. Our book-to-bill ratio was exceptional, driven in part by the current 5G infrastructure and data center spending cycles. We also estimate that COVID-19 pandemic motivated some customers to order ahead of end demand due to concerns of future component shortages or potential supply chain disruptions.

我們的訂單出貨比約為 1.4:1。在我們看來，本季度內預訂和發貨的業務約佔總收入的 25%。我們的訂單出貨比非常出色，部分原因是當前的 5G 基礎設施和數據中心支出週期。我們還估計，由於擔心未來組件短缺或潛在的供應鏈中斷，COVID-19 大流行促使一些客戶提前訂購。

Additionally, we received some long lead time industrial and defense orders in Q3 that will be shipped beyond Q4. For all these reasons, we believe that in the coming quarters, our book-to-bill ratio will return to a more typical level. We remain in regular contact with our largest customers, and we are closely monitoring channel inventory, general order activity and long-term demand forecasts.

此外，我們在第三季度收到了一些交貨期較長的工業和國防訂單，這些訂單將在第四季度之後發貨。出於所有這些原因，我們相信在未來幾個季度，我們的訂單出貨比將恢復到更典型的水平。我們與最大的客戶保持定期聯繫，並密切監控渠道庫存、一般訂單活動和長期需求預測。

For Q3, sequential growth in our data center end market revenue was driven by cloud data center demand, both from domestic and international deployments. Our 100G high-performance analog products and our emerging 200 and 400G analog product lines are supporting the growth in this market segment today. 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.

對於第三季度，我們數據中心終端市場收入的環比增長是由來自國內和國際部署的雲數據中心需求推動的。我們的 100G 高性能模擬產品以及我們新興的 200 和 400G 模擬產品線正在支持當今這一細分市場的增長。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。

We view ongoing demand for bandwidth and associated infrastructure upgrades inside the data centers to be an opportunity for MACOM in the years ahead. And we see the expansion of 100G and the emergence of 200 and 400G to be opportunities to expand our position in the market.

我們認為數據中心內部對帶寬和相關基礎設施升級的持續需求是未來幾年 MACOM 的一個機會。我們看到 100G 的擴展以及 200 和 400G 的出現是擴大我們在市場中地位的機會。

Sequential growth in our Telecom end market revenue was driven by demand for 5G wireless RF products, 5G front haul and mid-haul HPA products, improvements in the GPON market and market share gains in the Metro/Long-haul market from new coherent products. We view 5G infrastructure deployments as a key growth driver for MACOM revenue. In the coming quarters, we anticipate further expanding our current 5G portfolio by launching additional optical components, more discrete RF components and more high-performance analog and mixed-signal ICs.

我們的電信終端市場收入的連續增長受到對 5G 無線射頻產品、5G 前傳和中傳 HPA 產品的需求、GPON 市場的改善以及新相干產品在城域/長途市場的市場份額增長的推動。我們將 5G 基礎設施部署視為 MACOM 收入的主要增長動力。在接下來的幾個季度，我們預計將通過推出更多光學組件、更多分立射頻組件以及更多高性能模擬和混合信號 IC 來進一步擴展我們當前的 5G 產品組合。

Our Industrial & Defense end market revenue consists of a variety of end applications, including long-term defense programs, satellite communication applications, MILCOM, and public safety handheld radio applications and test and measurement equipment. We recognize this end market has not been growing for MACOM over the past few years, and we are implementing new strategies to initiate growth, including improving our sales channels, refocusing on key accounts, increasing cross-selling of all technologies into the market and developing additional standard and custom products, which will appeal directly to these customers. This end market has tremendous growth potential for MACOM. However, we believe that it will take us time to grow our business in I&D given the long design in cycles.

我們的工業和國防終端市場收入包括各種終端應用，包括長期國防計劃、衛星通信應用、MILCOM 和公共安全手持無線電應用以及測試和測量設備。我們認識到過去幾年 MACOM 的這個終端市場沒有增長，我們正在實施新的戰略來啟動增長，包括改善我們的銷售渠道、重新關注關鍵客戶、增加所有技術在市場中的交叉銷售以及開發額外的標準和定制產品，將直接吸引這些客戶。這個終端市場對 MACOM 來說具有巨大的增長潛力。然而，我們認為，鑑於週期較長的設計，我們需要時間來發展我們在 I&D 方面的業務。

I'd next like to highlight a few corporate initiatives aimed at enhancing our quality standards across MACOM. We have kicked off an effort to certify all our major facilities to the ANSI/ESD S20.20 quality standard. And this past quarter, 4 of our main facilities were certified.

接下來，我想強調一些旨在提高整個 MACOM 質量標準的企業舉措。我們已經開始努力對我們所有的主要設施進行 ANSI/ESD S20.20 質量標準認證。上個季度，我們的 4 個主要設施獲得了認證。

This standard is a multi-industry standard, which defines control programs to protect ESD-sensitive components, assemblies and equipment. Our engineering, operations and quality staff are doing a great job updating our procedures in order to achieve these certifications, and we look forward to additional site certifications over the next 12 months.

該標準是一個多行業標準，定義了保護 ESD 敏感元件、組件和設備的控製程序。為了獲得這些認證，我們的工程、運營和質量人員正在更新我們的程序，我們期待在未來 12 個月內獲得更多的現場認證。

In June, we kicked off new efforts to certify MACOM on 2 additional quality standards. The first is AS9100D, which builds upon the ISO 9001 standards but modified to meet DOD, NASA, International Aviation and FAA quality standards. And the second is TS 16949, which is also built upon the ISO 9001 framework and focuses on defect prevention, waste reduction and supply chain management for the automotive industry.

6 月，我們開始了新的工作，以根據 2 個額外的質量標準對 MACOM 進行認證。第一個是 AS9100D，它以 ISO 9001 標準為基礎，但經過修改以滿足 DOD、NASA、國際航空和 FAA 質量標準。第二個是 TS 16949，它也建立在 ISO 9001 框架之上，側重於汽車行業的缺陷預防、減少浪費和供應鏈管理。

Expanding the capability of our quality systems supports our growth strategy to enter new markets and to find new customers. And these actions will open up new doors for us in the aerospace and automotive industries. Broadly speaking, MACOM has a wide range of differentiated products in production today. A number of these products have extraordinarily long life cycles and produce revenue years after they've been introduced.

擴大我們質量體系的能力支持我們進入新市場和尋找新客戶的增長戰略。這些行動將為我們在航空航天和汽車行業打開新的大門。從廣義上講，MACOM 如今在生產中擁有廣泛的差異化產品。其中許多產品的生命週期非常長，並且在推出後數年內產生收入。

In total, we have dozens of different product lines, servicing thousands of customers. We view this diversity of technology, products and end market applications as an inherent strength of the company. MACOM, with its 65-year history is known for its RF diodes, gallium arsenide MMICs and silicon bipolar power transistors. We have also taken the lead position in the market with our high-performance analog drivers, clock and data recoveries, circuits or CDRs and transimpedance amplifiers or TIAs, which are amongst the best-in-class in the industry.

我們總共擁有數十種不同的產品線，為成千上萬的客戶提供服務。我們將這種技術、產品和終端市場應用的多樣性視為公司的內在優勢。MACOM 擁有 65 年的歷史，以其射頻二極管、砷化鎵 MMIC 和矽雙極功率晶體管而聞名。我們還憑藉我們的高性能模擬驅動器、時鐘和數據恢復、電路或 CDR 以及互阻放大器或 TIA 在市場上處於領先地位，這些都是業內一流的。

We complement these products with high-speed coherent drivers and TIAs for next-generation Metro/Long-haul optical networks. And last, interest in our proprietary EFT laser technology is expanding because of our performance and because of our 4-inch indium phosphide wafers are giving us a tremendous manufacturing advantage. We see numerous opportunities to grow our business, and we believe that our current portfolio of products should provide a stable foundation for future profit and revenue growth.

我們為下一代城域/長途光網絡提供高速相干驅動器和 TIA 來補充這些產品。最後，由於我們的性能以及我們的 4 英寸磷化銦晶圓給我們帶來了巨大的製造優勢，人們對我們專有的 EFT 激光技術的興趣正在擴大。我們看到了許多發展業務的機會，我們相信我們目前的產品組合將為未來的利潤和收入增長奠定穩定的基礎。

Our strategy is to build upon this foundation by developing technologies and new products, which will differentiate MACOM and help drive additional growth, including gallium nitride, or GaN, high-performance lasers, DSPs and silicon photonics. These technologies are compelling, and they have the potential to generate significant revenues and profits for the company in the years ahead. We continue to slowly move these technologies closer to productization.

我們的戰略是在此基礎上開發技術和新產品，這將使 MACOM 脫穎而出並幫助推動進一步增長，包括氮化鎵或 GaN、高性能激光器、DSP 和矽光子學。這些技術非常引人注目，它們有可能在未來幾年為公司帶來可觀的收入和利潤。我們繼續慢慢地將這些技術推向產品化。

One of the highlights in the quarter was the completion of our first 100G PAM4 DSP program. I want to congratulate our engineering team for successfully finishing the design and our production teams for transitioning this product from engineering to production. While we do recognize we are entering an established market, the 100G PAM4 DSP market is large and growing, and we will aggressively pursue opportunities to win market share and maximize our return on investment. The completion of this project highlights our management team's ability to focus and execute.

本季度的亮點之一是我們第一個 100G PAM4 DSP 項目的完成。我要祝賀我們的工程團隊成功完成了設計，並祝賀我們的生產團隊將這款產品從工程設計過渡到生產。雖然我們確實認識到我們正在進入成熟市場，但 100G PAM4 DSP 市場規模龐大且不斷增長，我們將積極尋求機會贏得市場份額並最大化我們的投資回報。該項目的完成凸顯了我們管理團隊的專注力和執行力。

I'll also note that this project created a wide range of compelling intellectual property, including high-speed logic, data converters and high-speed SerDes. We will leverage this foundational IP into a variety of new product initiatives to maximize our future growth.

我還將注意到，該項目創造了廣泛的引人注目的知識產權，包括高速邏輯、數據轉換器和高速 SerDes。我們將利用這一基礎知識產權到各種新產品計劃中，以最大限度地提高我們未來的增長。

I mentioned on last quarter's call that our 25G FP fronthaul lasers have been sampling to customers, and we have been receiving positive initial feedback. Our 25G FP laser lasers work in 300-meter and the more difficult 2-kilometer fronthaul applications. Today, this market is supported by our competitors' expensive 25G DFB lasers or in some applications by overdriven 10G DFB lasers. Now customers will have the option to switch to a MACOM 25G FP laser product, which was designed specifically for this application. And one that offers compelling performance, superior reliability and supply chain security due to our high-volume manufacturing capability. And our customers have quickly recognized one big advantage, that our lasers do not need additional support hardware, which can simplify the overall logical design and lower the bond cost.

我在上個季度的電話會議上提到，我們的 25G FP 前傳激光器已向客戶提供樣品，我們收到了積極的初步反饋。我們的 25G FP 激光激光器適用於 300 米和更困難的 2 公里前傳應用。今天，這個市場得到我們競爭對手昂貴的 25G DFB 激光器的支持，或者在某些應用中得到過驅動的 10G DFB 激光器的支持。現在，客戶可以選擇切換到專為此應用設計的 MACOM 25G FP 激光產品。由於我們的大批量製造能力，它提供了引人注目的性能、卓越的可靠性和供應鏈安全性。我們的客戶很快就認識到了一大優勢，即我們的激光器不需要額外的支持硬件，這可以簡化整體邏輯設計並降低鍵合成本。

Our lightweight team has been achieving strong revenue growth in recent quarters. Primarily driven by expanding their portfolio with new laser and photodetector products. Our silicon photonics R&D work also continues. We are making slow but steady progress on 3 critical elements needed to launch an L-PIC product, namely: one, a robust continuous wave or CW laser design; two, a silicon photonics IC; and three, an active laser-aligned manufacturing process, which mounts from 1 to 4 lasers on a single silicon photonic IC.

我們的輕量級團隊在最近幾個季度實現了強勁的收入增長。主要是通過使用新的激光和光電探測器產品擴展其產品組合。我們的矽光子研發工作也在繼續。我們在推出 L-PIC 產品所需的 3 個關鍵要素上取得了緩慢但穩定的進展，即：第一，穩健的連續波或 CW 激光器設計；二、矽光子IC；第三，主動激光對準製造工藝，在單個矽光子 IC 上安裝 1 到 4 個激光器。

This is exciting technology, and there is still a lot of work to do before we launch our first product. As a merchant supplier of ICs and to maximize our opportunity, we have updated our go-to-market product strategy to include selling silicon photonic ICs without lasers and selling CW lasers to those that have their own silicon photonics.

這是一項令人興奮的技術，在我們推出第一個產品之前還有很多工作要做。作為 IC 的商業供應商，為了最大限度地利用我們的機會，我們更新了我們的上市產品戰略，包括銷售不帶激光器的矽光子 IC 以及向擁有自己的矽光子器件的公司銷售 CW 激光器。

Our RF power team has been extremely busy over the past 12 months. Under our new leadership -- under our new technical leadership, we have learned a tremendous amount about the attributes of our existing GaN on Silicon process, and we have made significant improvements in both our driver and Doherty amplifier designs.

在過去的 12 個月裡，我們的 RF 功率團隊一直非常忙碌。在我們的新領導下——在我們新的技術領導下，我們對現有的矽基氮化鎵工藝的屬性有了很多了解，並且我們在驅動器和 Doherty 放大器設計方面取得了重大改進。

We do recognize there are limitations of GaN on Silicon in certain applications. And over the past months, our RF power design team has made new efforts to incorporate GaN on Silicon Carbide into our portfolio as a priority. And I am pleased that in early August, time to be coincide with the virtual International Microwave Symposium, or IMS, we will be introducing our first wave of GaN on Silicon Carbide standard products.

我們確實認識到矽基氮化鎵在某些應用中存在局限性。在過去的幾個月裡，我們的 RF 功率設計團隊做出了新的努力，優先將碳化矽基 GaN 納入我們的產品組合。我很高興在 8 月初，恰逢虛擬國際微波研討會 (IMS)，我們將推出我們的第一批碳化矽基 GaN 標準產品。

We will be branding this product line under the MACOM pure carbide trademark. I'll note the team has already been sampling our first pure carbide products to customers in areas where silicon carbide has a technical advantage and where it makes sense to do so.

我們將在 MACOM 純碳化物商標下為該產品系列打上烙印。我會注意到，該團隊已經在碳化矽具有技術優勢且這樣做有意義的地區向客戶提供了我們的首批純碳化物產品樣品。

ST continues to work on the installation of capital equipment and their path to support the development of an improved and next-generation GaN on Silicon process. At this moment, it is too early in the development project to discuss schedules. I'll note that our RF power growth strategy includes winning market share in both the Telecom and the Industrial & Defense markets using our full portfolio of gallium arsenide, GaN, and silicon bipolar processes. We view these 2 markets as equally rich with opportunities.

ST 繼續致力於固定設備的安裝及其路徑，以支持改進的下一代矽基 GaN 工藝的開發。目前，在開發項目中討論時間表還為時過早。我會指出，我們的 RF 功率增長戰略包括使用我們完整的砷化鎵、GaN 和矽雙極工藝組合在電信和工業與國防市場贏得市場份額。我們認為這兩個市場同樣充滿機遇。

We had another strong quarter of new product introductions from all our engineering teams with over 30 products introduced. Engineering leadership is focused on executing product plans efficiently and we are challenging our designers and technologists to raise the level of innovation with more best-in-class products. And our semiconductor technologists are preparing to reinvigorate our low wafer fab by enhancing and adding additional process technologies to the fab.

我們的所有工程團隊又推出了另一個強勁的新產品季度，推出了 30 多種產品。工程領導專注於有效地執行產品計劃，我們正在挑戰我們的設計師和技術人員，以通過更多一流的產品來提高創新水平。我們的半導體技術人員正準備通過增強和添加額外的工藝技術來重振我們的低晶圓廠。

Our design and applications engineering staff are preparing for both the IMS and the China International Optoelectronic Exposition or CIOE Conference to be held in Shenzhen, China in August and early September, respectively. While IMS will be a virtual trade show, CIOE is expected to be held in person and our local China-based applications and sales teams will host customers and showcase new products across our data center, 5G and PON portfolio.

我們的設計和應用工程人員正在為分別於 8 月和 9 月初在中國深圳舉行的 IMS 和中國國際光電博覽會或 CIOE 大會做準備。雖然 IMS 將是一個虛擬貿易展，但 CIOE 預計將親自舉辦，我們在中國的本地應用程序和銷售團隊將接待客戶並展示我們數據中心、5G 和 PON 產品組合的新產品。

In summary, we stand in front of multibillion-dollar markets with a unique technology portfolio. I expect we will experience periods of high-growth and periods of low growth and possibly even negative growth, which is normal for our cyclical industry. For these reasons, we maintain a long-term perspective on executing our strategy, and we will work to manage our business to be profitable throughout all business cycles.

總之，我們以獨特的技術組合站在價值數十億美元的市場面前。我預計我們將經歷高增長期和低增長期，甚至可能出現負增長，這對我們的周期性行業來說是正常的。出於這些原因，我們在執行我們的戰略時保持長遠的眼光，我們將努力管理我們的業務，以便在所有業務週期中實現盈利。

We are confident that we can continue to improve our financials and take market share in the months and years ahead.

我們有信心在未來數月和數年內繼續改善財務狀況並佔據市場份額。

Jack will now provide a more detailed review of our Q3 financial results.

傑克現在將對我們第三季度的財務業績進行更詳細的審查。

Thank you, Steve, and I hope everyone is having a good afternoon. Our fiscal Q3 results were another tangible step toward improving MACOM's overall profitability and cash flow. We posted sequential improvements in revenue, margins and adjusted earnings per share in fiscal Q3. We also recorded another quarter of strong cash flow and grew our cash balance.

謝謝你，史蒂夫，我希望大家下午好。我們的第三季度財報是提高 MACOM 整體盈利能力和現金流的又一切實步驟。我們公佈了第三財季收入、利潤率和調整後每股收益的連續改善。我們還記錄了另一個季度的強勁現金流並增加了我們的現金餘額。

Revenue in the third fiscal quarter of 2020 was $137.3 million. On a year-over-year basis, revenue was up 27% from $108.3 million in the third fiscal quarter of 2019, which was our lowest revenue quarter over the past 4 years. Sequentially, revenue was up 9% from Q2. Sequential improvement in revenue was driven by continuing positive trends in our Telecom and Data Center end markets.

2020 年第三財季的收入為 1.373 億美元。與去年同期相比，收入從 2019 年第三財季的 1.083 億美元增長 27%，這是我們過去 4 年收入最低的季度。隨後，收入比第二季度增長了 9%。我們的電信和數據中心終端市場的持續積極趨勢推動了收入的連續增長。

Overall, Industrial & Defense demand continues to be healthy, despite revenue being relatively flat over the past few quarters. During the third fiscal quarter of 2020, we had 3 customers that exceeded 10% of total revenue. Two of them are located in Asia. These customers were all channel partners and service multiple end customers. Adjusted gross profit in fiscal Q3 was $76.2 million or 55.5% of revenue. Adjusted gross margin was up 100 basis points sequentially. As we've discussed in the past, gross margin improvement is a corporate priority for us with our sales and operational teams focused on continuous improvement opportunities.

總體而言，儘管過去幾個季度的收入相對持平，但工業和國防需求依然健康。在 2020 年第三財季，我們有 3 個客戶超過總收入的 10%。其中兩個位於亞洲。這些客戶都是渠道合作夥伴，服務於多個終端客戶。第三財季調整後的毛利為 7620 萬美元，佔收入的 55.5%。調整後毛利率環比上升 100 個基點。正如我們過去所討論的那樣，提高毛利率是我們的公司優先事項，我們的銷售和運營團隊專注於持續改進機會。

Over the past few quarters, we have made incremental progress with improving the efficiency of our manufacturing, supply chain and other operations. As you may know, we have a very diverse product portfolio with varying customer demands, and our products generally have long production cycle times.

在過去的幾個季度中，我們在提高製造、供應鍊和其他運營效率方面取得了漸進的進展。您可能知道，我們的產品組合非常多樣化，客戶需求各不相同，而且我們的產品通常具有較長的生產週期。

In an effort to help better optimize our structure we are expanding our sales, inventory and operations planning process known as SIOP. We believe this improved SIOP process and other initiatives will help us further improve our cycle times, customer responsiveness inventory metrics and overall profitability going forward.

為了幫助更好地優化我們的結構，我們正在擴展稱為 SIOP 的銷售、庫存和運營計劃流程。我們相信這一改進的 SIOP 流程和其他舉措將幫助我們進一步改善我們的周期時間、客戶響應庫存指標和未來的整體盈利能力。

Another longer-term item to highlight is a multiyear project we recently kicked off to help reduce utility costs and our dependency on the local power grid at our Lowell, Massachusetts fabrication facility. This is expected to be a turnkey gas-fired cogeneration system that will produce uninterruptible power, heating and cooling for our Lowell fab operations.

另一個需要強調的長期項目是我們最近啟動的一個多年期項目，旨在幫助降低公用事業成本以及我們在馬薩諸塞州洛厄爾的製造工廠對當地電網的依賴。預計這將是一個交鑰匙的燃氣熱電聯產系統，將為我們的洛厄爾晶圓廠運營提供不間斷的電力、加熱和冷卻。

Once up and running in about 18 months, we expect the system to provide annual savings of approximately $1 million and improve our cash flow primarily through lower utility costs. Equally important, the system is expected to improve our fab resiliency and uptime by eliminating the impact of power grid surges and outages.

一旦在大約 18 個月內啟動並運行，我們預計該系統每年可節省約 100 萬美元，並主要通過降低公用事業成本來改善我們的現金流。同樣重要的是，該系統有望通過消除電網浪湧和停電的影響來提高我們晶圓廠的彈性和正常運行時間。

And finally, we expect to improve our carbon footprint with estimated savings of carbon dioxide emissions of over 8 million pounds per year, the equivalent of removing approximately 800 cars from the road each year.

最後，我們希望通過估計每年減少超過 800 萬磅的二氧化碳排放量來改善我們的碳足跡，相當於每年從道路上減少大約 800 輛汽車。

Total adjusted operating expense was $46.9 million, consisting of R&D expense of $30.6 million and SG&A expense of $16.3 million. Operating expenses were down $2.4 million sequentially.

調整後的運營費用總額為 4690 萬美元，其中包括 3060 萬美元的研發費用和 1630 萬美元的 SG&A 費用。運營費用環比下降 240 萬美元。

Our corporate-wide focus on streamlining operating expenses continues to provide positive impacts, with further new opportunities for savings being identified and actioned almost daily. Our employees are focused on supporting our product development and growth opportunities, while also proactively looking for new and innovative ways to more efficiently run the business. The sequential decline in operating expenses was attributable to these continuing efficiency improvements as well as lower travel and promotional expenses in Q3 due to impacts from COVID-19. Looking ahead, we expect operating expenses to increase modestly from the Q3 levels.

我們在全公司範圍內對精簡運營費用的關注繼續產生積極影響，幾乎每天都會發現更多新的節省機會並採取行動。我們的員工專注於支持我們的產品開發和增長機會，同時還積極尋找新的和創新的方式來更有效地運營業務。由於 COVID-19 的影響，這些持續的效率改進以及第三季度差旅和促銷費用的減少，導致運營費用環比下降。展望未來，我們預計運營費用將從第三季度的水平小幅增長。

We will continue to balance investments in new product opportunities while managing our discretionary spending. Adjusted operating income in fiscal Q3 was $29.3 million, up from $19.6 million in fiscal Q2. Adjusted operating margin was 21.4%. As Steve mentioned, we view the 20% operating margin we recorded in Q3 as a significant milestone. We expect the combination of top line growth, improving gross margins and stable operating expenses to provide continued operating leverage through the remainder of the calendar year.

我們將繼續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。第三財季調整後營業收入為 2930 萬美元，高於第二財季的 1960 萬美元。調整後的營業利潤率為 21.4%。正如史蒂夫所提到的，我們認為我們在第三季度記錄的 20% 的營業利潤率是一個重要的里程碑。我們預計營收增長、毛利率提高和運營支出穩定將在本日曆年剩餘時間內提供持續的運營槓桿。

Depreciation expense for fiscal Q3 was $7.1 million, and adjusted EBITDA was $36.4 million. I would like to note that our adjusted EBITDA was a $9.5 million sequential improvement over the $26.9 million we reported in fiscal Q2. Fiscal Q3 adjusted net interest expense was approximately $4.8 million, down approximately $2 million from fiscal Q2 2020. The decline was primarily driven by the reduction of LIBOR rates on our floating rate term loan. Looking ahead, we expect adjusted net interest expense to remain roughly at these levels.

第三財季的折舊費用為 710 萬美元，調整後的 EBITDA 為 3640 萬美元。我想指出，我們調整後的 EBITDA 比我們在第二財季報告的 2690 萬美元環比增加了 950 萬美元。第三財季調整後的淨利息支出約為 480 萬美元，比 2020 財年第二季度減少約 200 萬美元。下降的主要原因是我們浮動利率定期貸款的 LIBOR 利率下降。展望未來，我們預計調整後的淨利息支出將大致保持在這些水平。

Our non-GAAP adjusted income tax rate in fiscal Q3 continued at 8% and resulted in an expense of approximately $2 million. We expect our non-GAAP adjusted income tax rate to remain at 8% for the remainder of the fiscal year.

我們在第三財季的非 GAAP 調整後所得稅率繼續保持在 8%，導致支出約為 200 萬美元。我們預計我們的非 GAAP 調整後所得稅率在本財年剩餘時間內將保持在 8%。

Fiscal Q3 adjusted net income was $22.7 million compared to $11.9 million in fiscal Q2. Adjusted earnings per fully diluted share was $0.33 in fiscal Q3, utilizing a share count of 68.6 million shares compared to $0.17 of adjusted earnings per share in fiscal Q2.

第三財季調整後淨收入為 2270 萬美元，而第二財季為 1190 萬美元。第三財季調整後的每股完全攤薄收益為 0.33 美元，使用股數為 6860 萬股，而第二財季的調整後每股收益為 0.17 美元。

Now moving on to cash flow and balance sheet items. Fiscal Q3 cash flow from operations was $34.1 million. Improvements in operating income and inventory management helped to enable strong cash generation for the quarter. Capital expenditures totaled $3.6 million for fiscal Q3. We remain focused on achieving appropriate returns on capital that we deploy. We expect overall capital expenditures in fiscal 2020 to come in at approximately half of our fiscal 2019 levels. Free cash flow was $30.4 million for the third fiscal quarter, and $20.5 million in Q2.

現在轉向現金流量和資產負債表項目。第三財季運營現金流為 3410 萬美元。營業收入和庫存管理的改善有助於本季度產生強勁的現金。第三財季的資本支出總計 360 萬美元。我們仍然專注於實現我們部署的適當資本回報。我們預計 2020 財年的總體資本支出將約為 2019 財年水平的一半。第三財季自由現金流為 3040 萬美元，第二季度為 2050 萬美元。

These fiscal 2020 improvements in cash flow continue to be a result of improved operating income, continuing revenue linearity, reduced CapEx and other working capital improvements. We believe the numerous structural changes and ongoing operational and financial improvement initiatives we have made and continue to make throughout the organization will further help to drive positive cash flow going forward.

這些 2020 財年現金流的改善仍然是營業收入改善、收入線性持續、資本支出減少和其他營運資本改善的結果。我們相信，我們已經並將繼續在整個組織中進行的眾多結構性變革以及持續的運營和財務改進舉措將進一步有助於推動正向現金流向前發展。

Our Q3 accounts receivable balance was $60.5 million, up from $53 million in Q2. As a result, days sales outstanding were 40 days, slightly up from 38 days in Q2, driven primarily by increases in revenue during the quarter.

我們第三季度的應收賬款餘額為 6050 萬美元，高於第二季度的 5300 萬美元。因此，未完成銷售天數為 40 天，略高於第二季度的 38 天，這主要是受本季度收入增長的推動。

Inventories were $95.6 million at quarter end, down another $4 million sequentially in spite of our higher Q3 revenue levels. Inventory turns improved to 2.6x during the third fiscal quarter, which is the highest inventory turns we've achieved since 2017. As I noted earlier, inventory management remains an area of emphasis, and we see opportunities to further improve our metrics going forward.

儘管我們第三季度的收入水平較高，但本季度末的存貨為 9560 萬美元，環比又下降了 400 萬美元。第三財季庫存周轉率提高到 2.6 倍，這是我們自 2017 年以來的最高庫存周轉率。正如我之前提到的，庫存管理仍然是一個重點領域，我們看到了進一步改進我們指標的機會。

Cash, cash equivalents and short-term investments for the third fiscal quarter were $265.1 million, up $43.5 million from Q2. In addition to the strong Q3 cash from operations, we recorded a cash inflow from investing activities of approximately $11 million associated with the payment we received from the sale of assets, which took place over a year ago.

第三財季的現金、現金等價物和短期投資為 2.651 億美元，比第二季度增加 4350 萬美元。除了強勁的第三季度運營現金外，我們還記錄了大約 1100 萬美元的投資活動現金流入，這與我們從一年多前發生的資產出售中收到的付款相關。

As a reminder, our short-term investments are comprised of corporate bonds and commercial paper and are classified as held for sale. Total debt was $691 million, inclusive of $31 million of finance leases. Our long-term debt of $668 million is covenant light, and has minimal annual principal repayments until its maturity in May 2024.

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。債務總額為 6.91 億美元，包括 3100 萬美元的融資租賃。我們的 6.68 億美元長期債務是契約輕型債務，在 2024 年 5 月到期之前每年償還的本金最少。

It's worth noting that our trailing 12-month EBITDA increased significantly in fiscal Q3, more than doubling sequentially. We believe the combination of growing cash on the balance sheet coupled with improving trailing 12-month EBITDA will result in declines in net leverage over time.

值得注意的是，我們過去 12 個月的 EBITDA 在第三財季顯著增長，環比翻了一番多。我們認為資產負債表上現金的增加加上過去 12 個月 EBITDA 的改善將導致淨槓桿率隨著時間的推移而下降。

In summary, we feel Q3 was another period of solid financial performance, and we are pleased with the progress our team has been making. We also understand that there is still much more for us to do in order to achieve our longer-term objectives.

總而言之，我們認為第三季度是又一個財務業績穩健的時期，我們對團隊取得的進展感到滿意。我們也明白，要實現我們的長期目標，我們還有很多工作要做。

I will 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 Q4, ending October 2, 2020, to be in the range of $144 million to $148 million. Adjusted gross margin is expected to be in the range of 55% to 57%, and adjusted earnings per share is expected to be between $0.36 and $0.40 based on 69.5 million fully diluted shares. Our Q4 revenue projections include expectations that our 3 end markets will grow sequentially.

謝謝你，傑克。MACOM 預計截至 2020 年 10 月 2 日的第四季度收入將在 1.44 億美元至 1.48 億美元之間。調整後的毛利率預計在 55% 至 57% 之間，基於 6950 萬股完全稀釋後的每股收益預計在 0.36 美元至 0.40 美元之間。我們的第四季度收入預測包括對我們的 3 個終端市場將連續增長的預期。

Specifically, we believe our revenue growth will be driven by the increase in data center traffic, 5G network deployments and increased demand for our RF and microwave products and defense applications.

具體而言，我們認為我們的收入增長將受到數據中心流量增加、5G 網絡部署以及對我們的射頻和微波產品及國防應用需求增加的推動。

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.

我們對擺在我們面前的多重增長機會感到興奮，現在我想請運營商回答任何問題。

Operator, we will take questions when you're ready.

接線員，我們會在您準備好後接受提問。

(Operator Instructions) I show our first question comes from the line of Quinn Bolton from Needham.

（操作員說明）我展示了我們的第一個問題來自 Needham 的 Quinn Bolton。

It's Michelle on for Quinn. And congrats on the solid results and guidance.

米歇爾替奎因上場。並祝賀可靠的結果和指導。

So for my first question, could you guys provide a little color on how you expect your end markets to perform in the fiscal fourth quarter, like which segments do you expect will be leading the growth? Any color you can give, that's great.

那麼對於我的第一個問題，你們能否提供一些關於您期望終端市場在第四財季的表現如何的顏色，比如您預計哪些細分市場將引領增長？你可以給任何顏色，那太棒了。

Sure. Thanks, Michelle. So looking into the fourth quarter, we are expecting the strongest growth to come from the Data Center end market, where we'll see strong double-digit growth. Telecom, we believe, will also grow close to 10% and I&D will probably be mid-single digits, maybe 5%.

當然。謝謝，米歇爾。因此，展望第四季度，我們預計最強勁的增長將來自數據中心終端市場，我們將在該市場看到強勁的兩位數增長。我們相信，電信也將增長接近 10%，而 I&D 可能會達到中等個位數，也許是 5%。

Okay. Great. That's helpful. And then just as my follow-up, we were wondering if you guys give an update on your 25-gig laser opportunity in the 5G fronthaul space? Where are you in the qualification process? I know you guys mentioned it in your prepared remarks, but I'm just kind of curious when you think that opportunity will start getting into the model?

好的。偉大的。這很有幫助。然後就像我的後續行動一樣，我們想知道你們是否更新了 5G 前傳空間中的 25-gig 激光器機會？你在資格認證過程中處於什麼階段？我知道你們在準備好的發言中提到了它，但我只是很好奇你們認為機會何時會開始進入模型？

Right. So I think that we are -- as we said in the script, making good progress. We've been sampling. We're getting good traction. We do now need to intercept a qualification cycle, which our customers need to go through with the major OEMs. We expect that activity to kick off towards the end of this calendar year.

正確的。所以我認為我們 - 正如我們在劇本中所說的那樣，取得了良好的進展。我們一直在取樣。我們正在獲得良好的牽引力。我們現在確實需要截取一個資格週期，我們的客戶需要通過主要 OEM 來完成這個週期。我們預計該活動將在本日曆年年底開始。

And that should line us up for deployments next year, next calendar year when the new bids go out for the optical module. So we're hoping to position ourselves for revenue with this product line sometime early next calendar year.

這應該讓我們為明年的部署做好準備，下一個日曆年，當新的光學模塊出價時。因此，我們希望在明年年初的某個時候通過這條產品線為自己定位收入。

And by the way, I just want to come back to the first question you asked. I think I misspoke. Telecom for Q4, we're expecting sort of 3% to 4% to 5% in that range. I just want to correct that.

順便說一句，我只想回到你問的第一個問題。我想我說錯了。第四季度的電信，我們預計該範圍內的增長率為 3% 至 4% 至 5%。我只是想糾正一下。

Our next question comes from Tom O'Malley from Barclays.

我們的下一個問題來自巴克萊銀行的 Tom O'Malley。

Congrats on the really nice results. My first question is about the Data Center. In your prepared remarks, you talked about, from the international side, most of the demand coming from Asia and 100G and I think some 200G applications. And you also mentioned 60% of the demand is international. Can you talk about what trends you're seeing from China as we move into the second half here?

恭喜你取得了非常好的結果。我的第一個問題是關於數據中心的。在您準備好的發言中，您談到了國際方面的大部分需求來自亞洲和 100G，我認為還有一些 200G 應用。你還提到 60% 的需求是國際性的。當我們進入下半場時，您能談談您從中國看到的趨勢嗎？

Obviously, you guys are aware of potentially some prebuilding, but what's the confidence that you have that, that portion of the business can keep up? Clearly, Data Center's guided up pretty strongly. Is that continued China strength? Or is that other strength kind of kicking in from elsewhere?

顯然，你們都知道可能有一些預建，但你們有什麼信心，這部分業務可以跟上？顯然，Data Center 的漲幅非常強勁。這是中國的持續實力嗎？或者是其他力量從其他地方開始發揮作用？

Sure. So there's a few item in there -- in your question that I'll try to address. The first is sort of the overall business in China. It's been strong over the past few quarters, and we expect that strength to continue as we enter into Q4 and possibly even Q1. A lot of that strength is being driven by the 5G infrastructure deployments that I talked about in the script. That we are able to support those customers primarily with 5G fronthaul products, for example, RF FEMs or front-end modules for the radio boards. And also we're supporting Metro/Long-haul equipment that we also include in this segment. When we think about the data center and the trends associated with that, we see -- we sort of look at things differently.

當然。所以那裡有一些項目 - 在你的問題中，我將嘗試解決。首先是中國的整體業務。它在過去幾個季度一直很強勁，我們預計在我們進入第四季度甚至可能進入第一季度時這種勢頭會持續下去。我在腳本中談到的 5G 基礎設施部署推動了很多這種力量。我們能夠主要通過 5G 前傳產品支持這些客戶，例如射頻 FEM 或無線電板的前端模塊。此外，我們還支持我們也包含在該細分市場中的地鐵/長途設備。當我們考慮數據中心和與之相關的趨勢時，我們看到——我們看待事物的方式有點不同。

Number one, we're actually picking up new data center customers in China, which is sort of an independent activity to what's going on in 5G and what's going on with our overall strategy in China. And so we see that as a very positive trend, and we expect that will provide strength for MACOM going into next year.

第一，我們實際上正在中國尋找新的數據中心客戶，這在某種程度上是獨立於 5G 的發展以及我們在中國的整體戰略正在發生的事情。所以我們認為這是一個非常積極的趨勢，我們預計這將為明年的 MACOM 提供力量。

Great. And then a follow-up is really on the RF portfolio. Congrats on the pure carbide trademark and your progress there. I just -- I wanted to kind of understand timing. You said you're sampling to customers, but Asia is obviously ramping 5G now. You're expecting early next year, the North American and European customers to start ramping.

偉大的。然後是射頻產品組合的後續行動。祝賀純碳化物商標和你們在那裡取得的進步。我只是 - 我想了解時間安排。你說你正在向客戶提供樣品，但亞洲現在顯然正在大力發展 5G。您預計明年年初，北美和歐洲客戶將開始增加。

Do you have a time line for where you're trying to intersect that product with the ramp? Obviously, you're hearing from some competitors such as NXP saying that LDMOS isn't really cutting it at the high end. When do you think that you'll be able to ship that for revenue?

您是否有關於您嘗試將該產品與坡道相交的時間線？顯然，您從 NXP 等一些競爭對手那裡聽說 LDMOS 並沒有真正在高端領域發揮作用。您認為您什麼時候可以發貨以獲取收入？

Well, that's certainly a great question, and I'll just highlight that in our GaN business, we're really trying to force folks ask a broader question, which is, what's your RF power strategy? And where we look at 5G and the opportunities in 5G is just one element of a rather complex strategy. So when we think -- but to answer your question specifically, when we think about 5G, there's been a lot of effort over the past few years with GaN on Silicon.

好吧，這當然是一個很好的問題，我只想強調在我們的 GaN 業務中，我們真的試圖迫使人們提出一個更廣泛的問題，即您的 RF 功率策略是什麼？我們看待 5G 的地方和 5G 中的機遇只是相當複雜戰略的一個要素。因此，當我們思考 - 但具體回答你的問題時，當我們考慮 5G 時，過去幾年在矽基 GaN 方面付出了很多努力。

And as I made comments just a moment ago that we are doing more and more work with GaN on Silicon Carbide. Not only for 5G applications, but all applications, including I&D, test and measurement and other non-5G telecom type applications. So to look forward in terms of the growth associated with these activities, I think we're looking at the back half of '21 at the earliest where we begin to see revenue ramps coming from the new strategy, that would be at the earliest.

正如我剛才所說的那樣，我們正在用碳化矽上的 GaN 做越來越多的工作。不僅適用於 5G 應用，而且適用於所有應用，包括 I&D、測試和測量以及其他非 5G 電信類型的應用。因此，為了展望與這些活動相關的增長，我認為我們最早會在 21 年後半年開始看到新戰略帶來的收入增長，這是最早的。

Our next question comes from Tore Svanberg from Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Congratulations on reaching that 20% operating margin milestone in such a short time. Quite impressive.

祝賀您在如此短的時間內達到了 20% 的營業利潤率里程碑。相當令人印象深刻。

My first question is on your PAM4. You mentioned the 100-gig product, the design is now finished. Could you elaborate a little bit on where you intend to sell that product? Either by speeds or by segments of the market?

我的第一個問題是關於您的 PAM4。你提到了100-gig的產品，現在設計已經完成了。您能否詳細說明一下您打算在哪裡銷售該產品？是按速度還是按市場細分？

Sure. So it's -- that product is targeting the data center first. So it's 25 -- it's a 4-lane 25G NRZ input and a PAM4 output. So that is the fundamental platform. We are targeting DR1-type applications. I can tell you that the team has done an absolutely phenomenal job finishing the design, going through the qualifications and now transitioning to production. We are actually -- have just started some very initial shipments of our DSP. So we're quite excited about that.

當然。所以它 - 該產品首先針對數據中心。所以它是 25——它是一個 4 通道 25G NRZ 輸入和一個 PAM4 輸出。這就是基礎平台。我們的目標是 DR1 類型的應用程序。我可以告訴你，該團隊在完成設計、通過資格審查和現在過渡到生產方面做得非常出色。我們實際上 - 剛剛開始了我們 DSP 的一些非常初始的發貨。所以我們對此感到非常興奮。

As I mentioned, we do feel like we're late to market, and it's -- there are many existing solutions in the market today. But I would say that customers are looking for alternatives. And our part is compelling. It has integrated -- an integrated driver. It's competitive on power. And so we do believe that we can, over time, win market share. I'll also add that we're not standing still with using this platform. And we will go after other applications, including mid haul, which requires a DSP functionality.

正如我所提到的，我們確實覺得我們上市晚了，而且它 - 當今市場上有許多現有的解決方案。但我會說客戶正在尋找替代品。我們的角色很有說服力。它集成了——一個集成的驅動程序。它在功率上具有競爭力。因此，我們確實相信，隨著時間的推移，我們可以贏得市場份額。我還要補充一點，我們不會停滯不前地使用這個平台。我們將追求其他應用，包括需要 DSP 功能的中程。

And then last, I'll add that the project was a multi-year project, and it created really a treasure trove of IP and we have mentioned publicly that we won't be doing new DSPs at smaller nodes. However, we will take full advantage of all the IP we have to go after a variety of markets with new products, so that we maximize the value of this IP.

最後，我要補充一點，該項目是一個多年項目，它創造了一個真正的 IP 寶庫，我們已經公開提到我們不會在較小的節點上做新的 DSP。但是，我們會充分利用我們所擁有的所有IP，用新的產品去追求各種市場，讓我們把這個IP的價值最大化。

Great. And as a follow-up, maybe a similar question on silicon photonics. Obviously, this is a bit more longer term, but again, what segments of the market do you intend to sample those products as they become available?

偉大的。作為後續行動，也許是關於矽光子學的類似問題。顯然，這是一個更長期的問題，但同樣，您打算在這些產品上市時對哪些市場細分市場進行抽樣？

We'll probably start with 400G and work from there. So for example, a 400G DR4-type pick might be one of the first products. We would probably follow that up with an FR4-type application in product. So these are complex assemblies, as I've talked about, where we're mounting lasers up to 4 lasers on a single silicon photonic device.

我們可能會從 400G 開始並從那裡開始工作。因此，例如，400G DR4 型拾音器可能是首批產品之一。我們可能會在產品中使用 FR4 類型的應用程序來跟進。所以這些是複雜的組件，正如我所說的，我們在單個矽光子設備上安裝多達 4 個激光器。

I can tell you that we've made tremendous progress over the past year. We've changed our strategy in terms of design approach. Not only on lasers, but also silicon photonics, and we've completely changed up our approach with putting together the L-PIC. So there's been a lot of change of strategy as it relates to this R&D project. And so we're feeling very confident that we have a viable plan, let's say.

我可以告訴你，我們在過去的一年裡取得了巨大的進步。我們在設計方法方面改變了我們的策略。不僅在激光器上，而且在矽光子學上，我們已經完全改變了組裝 L-PIC 的方法。因此，與該研發項目相關的戰略發生了很多變化。因此，我們非常有信心我們有一個可行的計劃，比方說。

But I would just caution everybody, it is early. We still have a lot of work to do. We are working with some lead customers that have done some funding of some of the projects. So I think this year, maybe early next year, we'll have small amounts of R&D dollar or R&D revenue, let's say, going out the door to support some of these custom programs.

但我要提醒大家，現在還早。我們還有很多工作要做。我們正在與一些主要客戶合作，這些客戶已經為一些項目提供了一些資金。所以我認為今年，也許是明年初，我們會有少量的研發資金或研發收入，比方說，走出去支持其中的一些定製程序。

And so we'll continue to work on this, but it is a long-term project. And once we feel we're getting close to product launches, and product introductions, then we'll talk about schedules and product revenue ramps.

因此，我們將繼續致力於此，但這是一個長期項目。一旦我們覺得我們接近產品發布和產品介紹，我們就會討論時間表和產品收入增長。

Our next question comes from Tom Diffely from D.A. Davidson.

我們的下一個問題來自 D.A. 的 Tom Diffely。戴維森。

So the first question is on the really strong book-to-bill, I mean, 1.4:1. And then your comments that you expect that to come back down in the subsequent quarters. So I'm curious, does that mean that you expect a bit of a slug of revenue to happen in the fourth fiscal quarter as a result of this?

所以第一個問題是關於真正強勁的訂單出貨比，我的意思是，1.4:1。然後是您的評論，您希望在隨後的幾個季度中回落。所以我很好奇，這是否意味著您預計第四財季會因此出現一些收入？

Yes. So why don't I say a few words on that, and then maybe Jack can also say a few words. So as we highlighted on the call, we do -- we had a tremendous bookings period this past 3 months, and we're very excited about that. We're seeing new design wins. We're seeing old customers increase production run rates. And we won some major programs here in the U.S. So collectively, we certainly had a very strong book-to-bill out. Now that's not to say that there's a bubble coming out in Q4.

是的。那麼為什麼我不就此說幾句話，然後也許傑克也可以說幾句話。因此，正如我們在電話會議上強調的那樣——我們在過去 3 個月的預訂期很長，我們對此感到非常興奮。我們看到了新的設計勝利。我們看到老客戶提高了生產運行率。我們在美國贏得了一些主要項目。總的來說，我們的訂單出貨量確實非常強勁。現在這並不是說第四季度出現了泡沫。

I think we've given reasonable guidance. We are guiding up. And we have a good position on our backlog and we'll have to see how things go as we move into Q4 and beyond. We're -- as we talked about on the script, we're taking a very careful look at our customers end demand. We're looking at inventory levels in the channel. We want to make sure that not only do we keep up with demand from an inventory point of view, but we also don't want to have too much inventory if things start to slow down next year.

我認為我們已經給出了合理的指導。我們在引導。我們在積壓工作中處於有利地位，我們必須看看進入第四季度及以後的情況。我們 - 正如我們在腳本中談到的那樣，我們正在非常仔細地研究客戶的最終需求。我們正在查看渠道中的庫存水平。我們要確保我們不僅從庫存的角度跟上需求，而且如果明年情況開始放緩，我們也不希望庫存過多。

So Jack, do you want to add any comments to that?

傑克，你想對此添加任何評論嗎？

Just once again, we obviously don't go out more than one quarter in terms of our guidance. And some of those orders that we have are reflected in that forward guidance that we put out from a top line perspective.

再一次，根據我們的指導，我們顯然不會超過四分之一。我們所擁有的其中一些訂單反映在我們從頂線角度提出的前瞻性指導中。

But just to build upon what Steve was saying, we do make sure we stay in contact with our customers and believe that, that end demand is there. The timing of it just might be pushed out a little bit further.

但只是為了建立史蒂夫所說的話，我們確實確保與客戶保持聯繫，並相信最終需求就在那裡。它的時間可能會稍微推遲一點。

Okay. That extra color is helpful. And then as a follow-up, when you look at the Industrial & Defense, you talked about a little restructuring going on. Is there going to be meaningful cost reductions with that? Or is it strictly just a reorganization of how it's set up?

好的。額外的顏色很有幫助。然後作為後續行動，當您查看工業與國防時，您談到了正在進行的一些重組。這樣做會帶來有意義的成本降低嗎？還是嚴格來說只是對其設置方式的重組？

Well, I'm not sure we signal we're doing any restructuring with I&D. We're not. What we're doing is we're changing our strategies and our approach to that market. So you should not expect any restructuring in this end market or any of our end markets or across the business at large.

好吧，我不確定我們是否表示我們正在對 I&D 進行任何重組。不是。我們正在做的是改變我們的戰略和我們進入該市場的方法。因此，您不應期望在這個終端市場或我們的任何終端市場或整個企業中進行任何重組。

We've recognized that our I&D business has been flat for a number of years. And so we believe the medicine to fix that is, number one, really doing a reset on the quality standards throughout the business to make sure that we have the right quality systems in place so that we can approach Tier 1 OEMs in the aerospace aviation as well as automotive industries. And so that is a major commitment to those end markets.

我們已經認識到我們的 I&D 業務多年來一直持平。因此，我們相信解決這個問題的良方是，第一，真正對整個企業的質量標准進行重新設置，以確保我們擁有正確的質量體系，以便我們能夠接近航空航天領域的一級原始設備製造商以及汽車行業。因此，這是對這些終端市場的重大承諾。

And then second, we have to make sure we have the products that these customers want. And that means doing more custom design work. It means making sure that the existing products we have today are being properly cross-selled into these end markets. We look at an automobile, and we see a tremendous amount of semiconductor content, and we have very little sales to this end market. So yet we have the right technology. We have high-speed analog circuitry. We have RF components. We have power products.

其次，我們必須確保我們擁有這些客戶想要的產品。這意味著要做更多的定制設計工作。這意味著確保我們今天擁有的現有產品能夠正確地交叉銷售到這些終端市場。我們看看汽車，我們看到了大量的半導體內容，而我們對這個終端市場的銷售卻很少。因此，我們擁有合適的技術。我們有高速模擬電路。我們有射頻元件。我們有電源產品。

So we are absolutely doing a reset on the go-to-market strategy. But we're not sort of structurally changing the way we run the business. It's more of a business strategy change.

因此，我們絕對是在對上市戰略進行重置。但我們並沒有從結構上改變我們經營業務的方式。這更像是一種商業戰略的改變。

Our next question comes from Tim Savageaux from Northland Capital.

我們的下一個問題來自 Northland Capital 的 Tim Savageaux。

Congrats on the results. A question and then a follow-up. First, on the Telecom side, you mentioned a number of drivers for 10% or so of the sequential growth in Q3 from fronthaul to PON, to even Metro/Long-haul.

祝賀結果。一個問題，然後是後續行動。首先，在電信方面，您提到了第三季度從前傳到 PON，甚至城域/長途的 10% 左右的連續增長的驅動因素。

As you look at your guidance, for that to move to more of a low to mid single-digit sequential growth rate, is there anything changing there with regard to the contribution of those various growth drivers that kind of propelled Q3 relative to what you expect for Q4? Any puts and takes there worth calling out?

當您查看您的指導意見時，為了使其轉向更多的中低個位數連續增長率，對於那些推動第三季度相對於您預期的各種增長驅動因素的貢獻，是否有任何變化第四季度？有什麼值得一試的地方嗎？

Tim, there's really not. I would say that it's more of a plateauing. The growth going into Q3 was very strong, as you highlighted. And going into Q4 be in the mid-single digits. So nothing -- no major puts and takes, really. It's just a matter of revenues catching up to some of the strong bookings we had in the earlier quarters.

蒂姆，真的沒有。我會說這更像是一個平穩期。正如您強調的那樣，進入第三季度的增長非常強勁。進入第 4 季度將保持在個位數中位數。所以沒什麼——真的沒有重大的投入和投入。這只是收入趕上我們前幾個季度的一些強勁預訂的問題。

And as you -- well, as we've talked about, a lot of this growth is coming from 5G, which includes fronthaul. It includes front-end modules, which are put on the RF Board. To some degree, it includes mid-haul, where we have drivers for the mid-haul applications.

正如你——好吧，正如我們所討論的，這種增長的很大一部分來自 5G，其中包括前傳。它包括放置在射頻板上的前端模塊。在某種程度上，它包括中程，我們有中程應用程序的驅動程序。

And the Telecom market also, as I highlighted, has 2 other pieces to it. One is the PON and PON had a very strong quarter here in Q3. I think that may -- of anything to highlight, that may be a little bit weaker going into Q4. And then the last is Metro/Long-haul, where we continue to win market share with some of our new products.

正如我強調的那樣，電信市場還有另外兩個部分。一個是 PON，PON 在第三季度的表現非常強勁。我認為這可能 - 任何需要強調的事情，在進入第四季度時可能會有所減弱。最後是地鐵/長途，我們繼續通過我們的一些新產品贏得市場份額。

Very helpful. And to follow-up and kind of along the lines of your discussion about monitoring inventory levels, as you look at the strength on the Datacom side, can you discern whether you've seen any pull forward in demand, whether that's in preparation for a transition to 400-gig later on, a reaction to increased traffic from work-from-home? Or any variety of potential drivers as you kind of assess the supply chain?

很有幫助。並按照您關於監控庫存水平的討論進行跟進，當您查看數據通信方面的實力時，您能否看出您是否看到了需求的任何推動，是否為稍後過渡到 400-gig，是對在家工作流量增加的反應？或者在您評估供應鏈時有任何潛在的驅動因素？

Or do you think you're just kind of running at kind of natural demand levels maybe enhanced by the pandemic and work-from-home traffic?

或者你認為你只是在某種自然需求水平上運行，可能會因大流行和在家工作的流量而增加？

Well, I think there's elements of truth to all of those points that you just made. So I would agree that at some level, those are contributing to the strong performance of our business in the data center end market. The -- I'll just add that the foundation of our business is really 100G analog products that are mostly CWDM4 type products.

好吧，我認為你剛才提出的所有這些觀點都有道理。所以我同意，在某種程度上，這些都有助於我們在數據中心終端市場的業務表現強勁。-- 我只想補充一點，我們業務的基礎實際上是 100G 模擬產品，主要是 CWDM4 類型的產品。

And then we begin to layer on some of the newer products, including 400G EML drivers as well as our linear TIAs. So I would say that it's -- we sort of believe it's end demand-driven, primarily, and then we'll layer on all those factors that you highlighted.

然後我們開始對一些較新的產品進行分層，包括 400G EML 驅動器以及我們的線性 TIA。所以我會說它是——我們有點相信它主要是最終需求驅動的，然後我們將對你強調的所有這些因素進行分層。

Maybe as a quick follow-up, follow-up. Any of the higher speed stuff in Datacom contributing meaningfully in either your results or your guide, 200-gig and above?

也許作為快速跟進，跟進。Datacom 中的任何更高速度的東西對您的結果或您的指南（200-gig 及以上）做出有意義的貢獻？

I would say the contributions are beginning to be meaningful at 400G, more so than 200G.

我會說這些貢獻在 400G 開始變得有意義，超過 200G。

Did you get that, Tim?

你明白了嗎，蒂姆？

I did.

我做到了。

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

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

I think my first one will be on Data Center. Steve, I think in your remarks regarding that segment, you talked about China business. I don't know if your intention was to signal it's a bigger share of your Data Center business or not. But can you indicate whether there's some sort of share gain going on or just a bigger trends of business going on there. Can you delineate that, please?

我想我的第一個將是數據中心。史蒂夫，我想在你關於那個部分的評論中，你談到了中國業務。我不知道你的意圖是否是表明它在你的數據中心業務中佔有更大的份額。但是你能指出是否有某種份額的增加或者只是更大的業務趨勢。你能描述一下嗎？

Yes. I would say that it's a new color of revenue, and it's still a smaller piece of the overall business. Most of it is at 25G short reach type applications inside the data center. And what we're excited about is the fact that these are new customers using our MACOM products for the first time.

是的。我會說這是一種新的收入形式，而且它在整個業務中所佔的比例仍然較小。其中大部分是數據中心內的 25G 短距離類型應用。令我們興奮的是，這些新客戶是第一次使用我們的 MACOM 產品。

Okay. And are you aware of whether you're gaining share there? Or what's going on there?

好的。你知道你是否在那裡獲得份額嗎？或者那裡發生了什麼？

Well, I -- hard for me to say at this moment, I think what we see is actually a new buildout. So this is new hardware being built for the first time. So I would probably not categorize it as share gain. I would categorize it as a new market.

好吧，我 - 現在我很難說，我認為我們看到的實際上是一個新的擴建。所以這是第一次構建新硬件。所以我可能不會將其歸類為股票收益。我會把它歸類為一個新市場。

Okay. That's fair enough. My follow-on question here is, again, inquiring about the inventory builds here. I may have missed your prepared remarks around what markets or products that is. If you can specify what that is and to what degree are you seeing that as an issue here or built into your guidance for the quarter?

好的。這很公平。我的後續問題再次是詢問此處的庫存構建。我可能錯過了你準備好的關於什麼市場或產品的評論。如果您可以具體說明那是什麼，以及您將其視為此處的問題或納入您對該季度的指導意見的程度如何？

Yes. We didn't specifically talk about that question in the prepared remarks, but I will say that our book-to-bill was very strong. We have seen tremendous demand across all 3 markets. So we had really an extraordinary bookings period this past quarter. And interesting fact is that the -- our channel inventory is actually quite low right now, whether it be our buy and resell distributors or whether it be the large multinational distributors or whether it be a local reseller that's servicing a particular number of customers, say, in Europe or somewhere in Asia.

是的。我們沒有在準備好的評論中具體談論這個問題，但我會說我們的訂單出貨量非常強勁。我們已經看到所有 3 個市場的巨大需求。所以我們在上個季度真的有一個非凡的預訂期。有趣的是，我們的渠道庫存現在實際上很低，無論是我們的買賣分銷商，還是大型跨國分銷商，或者是為特定數量的客戶提供服務的本地經銷商，比如說，在歐洲或亞洲的某個地方。

So our feeling is the inventory levels are being well-managed by MACOM through our chain. And we get the sense that our customers are also carrying low levels of inventory because the expedite levels are quite high even as we speak today.

因此，我們的感覺是 MACOM 通過我們的鏈條對庫存水平進行了良好的管理。而且我們感覺到我們的客戶也攜帶著低水平的庫存，因為即使在我們今天說話時，加速水平也很高。

I show no further questions in the queue.

我不會在隊列中顯示更多問題。

At this time, I would like to turn the call over to Mr. Steve Daly, President and CEO, for closing remarks.

此時，我想將電話轉交給總裁兼首席執行官史蒂夫戴利先生，讓他發表結束語。

Thank you. In closing, Jack and I would like to thank our employees for their extraordinary efforts and accomplishments throughout the past quarter. 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的非凡努力和成就。謝謝，晚上好。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。