MACOM Technology Solutions Holdings, Inc. (MTSI) 2016 Q3 法說會逐字稿

Good afternoon and welcome to the MACOM Technology Solution's fiscal third-quarter 2016 financial results conference call.

下午好，歡迎參加 MACOM Technology Solutions 2016 會計年度第三季財務業績電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this conference call is being recorded today, Tuesday, July 26, 2016. I'll now turn the call to Leanne Sievers of Shelton Group, the investor relations agency for MACOM. Leanne, please go ahead.

提醒各位，本次電話會議於今天（2016 年 7 月 26 日，星期二）錄音。現在我將把電話交給 Shelton Group（MACOM 的投資人關係代理機構）的 Leanne Sievers。Leanne，請開始。

Good afternoon and welcome to MACOM Technology Solutions third-quarter 2016 earnings conference call. I am Leanne Sievers Executive Vice President of Shelton Group, MACOM's investor relations firm. With us today are MACOM's President and Chief Executive Officer, John Croteau, and Senior Vice President and Chief Financial Officer, Bob McMullan. If you have not received a copy of the press release you can obtain a copy on MACOM's website at www.macom.com under the Investor Relations section.

下午好，歡迎參加 MACOM Technology Solutions 2016 年第三季財報電話會議。我是 Shelton Group 執行副總裁 Leanne Sievers，Shelton Group 為 MACOM 的投資人關係公司。今天與會者包括 MACOM 總裁兼執行長 John Croteau，以及資深副總裁兼財務長 Bob McMullan。若您尚未收到新聞稿，可至 MACOM 網站 www.macom.com 的「Investor Relations」專區取得。

Before I turn the call over to Mr. Croteau I would like to remind our listeners that Management's prepared remarks and answers to your questions contain forward-looking statements which are subject to risks and uncertainties.

在我把電話交給 Croteau 先生之前，我想提醒各位聽眾，管理層的事先準備發言以及對各位問題的回答包含前瞻性陳述，並可能受到風險與不確定性影響。

Because actual results may differ materially from those discussed today, MACOM claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and refers you to a more detailed discussion of risks and uncertainties that could result in those differences MACOM's filings with the Securities and Exchange Commission, including its current report on form 8-K filed today, annual report on form 10-K filed on November 24, 2015 and quarterly report on form 10-Q filed on April 27, 2016. Any forward-looking statements represent Management's views only as of today, July 26, 2016, and MACOM assumes no obligation to update these statements in the future.

由於實際結果可能與今日討論內容存在重大差異，MACOM 主張適用《1995 年私人證券訴訟改革法案》中關於前瞻性陳述的「安全港」保護，並請您參閱 MACOM 向美國證券交易委員會（SEC）提交之文件中對可能導致差異之風險與不確定性的更詳細討論，包括今日提交的 8-K 表格當前報告、2015 年 11 月 24 日提交的 10-K 表格年度報告，以及 2016 年 4 月 27 日提交的 10-Q 表格季度報告。任何前瞻性陳述僅代表管理層截至今日（2016 年 7 月 26 日）的觀點，MACOM 不承擔未來更新此等陳述之義務。

The Company's press release and Management's statements during this conference call will include discussions of certain adjusted non-GAAP measures and financial information including all income statement amounts and percentages other than revenue referred to on today's call unless otherwise noted. These financial measures and a reconciliation of GAAP to adjusted non-GAAP results are provided in the Company's press release and related current report form 8-K, which was filed with the SEC today and can be found at the Investor Relation section of MACOM's website.

公司新聞稿以及管理層在本次電話會議中的陳述，將包含對若干經調整之非 GAAP 指標與財務資訊的討論；除非另有說明，今日電話會議中提及之除營收以外的所有損益表金額與百分比，均以經調整之非 GAAP 基礎呈現。上述財務衡量指標以及 GAAP 與經調整非 GAAP 結果之調節表，已載於公司新聞稿及相關的 8-K 表格當前報告中；該報告已於今日向 SEC 提交，並可於 MACOM 網站的「Investor Relations」專區查閱。

MACOM has modified its format from press releases of its reconciliation of GAAP to adjusted non-GAAP results, reduced the number of reconciling adjustments and expanded its discussion of adjustments to GAAP and the reasons for exclusion from GAAP in line with recent SEC commentary and requirements. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 30 days in the Investor Relation section of MACOM's website. And now I'll turn the call over to MACOM's President and CEO, John Croteau. John, please go ahead.

MACOM 已調整其新聞稿中 GAAP 與經調整非 GAAP 結果調節表的呈現格式，減少調節項目數量，並依據近期 SEC 的評論與要求，擴充對 GAAP 調整項目及其自 GAAP 排除原因的說明。若各位此刻無法收聽完整電話會議，網路直播的錄音將於 MACOM 網站「Investor Relations」專區提供 30 天。現在我將把電話交給 MACOM 總裁兼執行長 John Croteau。John，請開始。

Thank you, Leanne. Welcome, everyone, and thanks for joining us today. We're going to do things a little bit differently today.

謝謝你，Leanne。歡迎各位，感謝今天加入我們。我們今天會以稍微不同的方式進行。

Coming off a very well received analyst day, we're adding a few aspects to our earnings call. Bob and I have been fielding a lot of questions about our optical business and in light of the favorable results, despite current market conditions, going forward we've decide to provide a greater level of detail as well as balance, highlighting the puts and takes, headwinds and tailwinds, across our optical markets.

在一場反應非常熱烈的分析師日活動之後，我們在本次財報電話會議中加入幾個面向。Bob 和我收到許多關於我們光學業務的問題；鑑於在目前市場環境下仍取得有利成果，未來我們決定提供更高層次的細節與更均衡的說明，強調我們光學市場中的利多與利空、逆風與順風等因素。

This should better underpin our quarterly performance, guidance and long-term prospects. With that I'll begin today's call with a quick snapshot of our third-quarter results for FY16 and then turn the call over to Bob McMullen, our CFO, who will review our financial performance in further detail. I'll then conclude today's prepared comments by providing a summary of our execution during the quarter along with end market insight, followed by guidance for the fiscal fourth quarter of 2016.

這將更有助於支撐我們的季度表現、財測指引與長期展望。接下來我會先快速概述 2016 會計年度第三季的業績，然後把電話交給我們的財務長 Bob McMullen，由他更詳細檢視財務表現。之後我將在事先準備發言的最後，總結本季的執行情況並提供終端市場洞察，接著給出 2016 會計年度第四季的指引。

Straight to the results. I am pleased to report that for our fiscal third quarter of 2016 revenue was $142.3 million, at the top end of guidance, with adjusted gross margin coming in at 57.3%. Adjusted net income was $27.9 million with adjusted earnings per diluted share at $0.51. Networks was up 8.6% sequentially within which optical was up 4.4%. Aerospace and Defense was essentially flat and Multi-market was up 1.9% sequentially.

直接看結果。我很高興報告，2016 會計年度第三季營收為 1.423 億美元，位於指引區間上緣；經調整毛利率為 57.3%。經調整淨利為 2,790 萬美元，稀釋後每股經調整盈餘為 0.51 美元。網路業務較前一季成長 8.6%，其中光學成長 4.4%。航太與國防基本持平，多元市場較前一季成長 1.9%。

Our catalog business, which spans Networks, Multi-market and A&D grew strong sequentially on the back of new product growth in MMICs. All in all, despite headwinds in PON, our market-share gains in lasers and strong demand in our catalog business enabled us to grow revenue 6.5% and adjusted EPS 10.9% sequentially. Another quarter of solid execution by the team. Now let me turn it over to Bob to review our fiscal third-quarter financials in more detail.

我們的型錄（catalog）業務橫跨網路、多元市場與航太國防（A&D），在 MMIC 新產品成長帶動下，較前一季強勁成長。整體而言，儘管 PON 面臨逆風，我們在雷射的市占提升以及型錄業務的強勁需求，使我們營收較前一季成長 6.5%，經調整 EPS 較前一季成長 10.9%。團隊再次交出穩健的執行成果。接下來我把電話交給 Bob，請他更詳細說明我們 2016 會計年度第三季的財務表現。

Thank you John, and good afternoon, everyone. During the course of my comments as well as those made by John all income statement amounts and percentages will be discussed on an adjusted non-GAAP basis. We have further highlighted in our earnings press release what the caption adjusted amounts include and why we have excluded each to enhance the core understanding of our financial performance.

謝謝你，John，各位下午好。在我以及 John 的評論中，所有損益表金額與百分比將以經調整之非 GAAP 基礎討論。我們也在財報新聞稿中進一步強調「經調整」金額包含哪些項目，以及我們為何排除各項目，以增進對核心財務表現的理解。

A reconciliation to the most comparable GAAP measures is included in today's earnings press release tables. Revenue was $142.3 million during the third quarter, representing a sequential increase of 6.5% compared to revenue of $133.6 million in the prior quarter, an increase of 30.4% compared to $109.1 million in the fiscal third-quarter of 2015. Internal growth contributed 85% of total sequential growth before adjusting for MACOM revenue from FiBest, a former customer, which would have further increased organic contribution.

與最可比 GAAP 指標的調節表已包含在今日財報新聞稿的表格中。第三季營收為 1.423 億美元，較前一季的 1.336 億美元增加 6.5%；較 2015 會計年度第三季的 1.091 億美元增加 30.4%。在未就來自 FiBest（前客戶）的 MACOM 營收進行調整前，內生成長貢獻了總體季增的 85%；若進一步調整 FiBest 相關因素，有機成長貢獻將更高。

Revenue by end markets. Networks, $104.6 million and 73.5% of total revenue, up 8.6% sequentially. Multi-market, $19.6 million and 13.8% of total revenue, up 1.9% sequentially. And A&D, $18.1 million and 12.7% of total revenues, up 0.5%. Of the total network revenue, total Optical was $76.7 million, up 4.4% sequentially.

依終端市場劃分之營收：網路業務 1.046 億美元，占總營收 73.5%，較前一季成長 8.6%；多元市場 1,960 萬美元，占總營收 13.8%，較前一季成長 1.9%；航太與國防（A&D）1,810 萬美元，占總營收 12.7%，成長 0.5%。在網路業務總營收中，光學合計為 7,670 萬美元，較前一季成長 4.4%。

Specifically, Long Haul, Metro and Data Center increased 9.3% sequentially to $28.1 million. Lasers, including access, backhaul or CPRI, Data Center and Other, including silicon photonics, increased 12.6% sequentially to $34 million.

具體而言，長途（Long Haul）、都會（Metro）與資料中心（Data Center）較前一季成長 9.3%，至 2,810 萬美元。雷射（Lasers）—包括接入（access）、回傳（backhaul）或 CPRI、資料中心及其他（包括矽光子）—較前一季成長 12.6%，至 3,400 萬美元。

And other Optical, including PON electronics, decline 16.5% sequentially to $14.7 million. Long-haul Metro and Data Center revenue was negatively impacted by certain supply constraints of key materials during the fiscal third quarter. The supply issue has been resolved over the past few weeks satisfactorily and should not be an issue in the fiscal fourth quarter.

其他光學（other Optical）—包括 PON 電子元件—較前一季下滑 16.5%，至 1,470 萬美元。長途、都會與資料中心營收在 2016 會計年度第三季受到部分關鍵材料供應限制的負面影響。該供應問題在過去幾週已令人滿意地解決，預期在 2016 會計年度第四季不會成為問題。

The strength of a diversified portfolio beyond optical products contributed to growing 21.8% sequentially to $28 million. Adjusted gross profit in the fiscal third quarter was $181.5 million or 57.3% of revenue, compared to $77.6 million or 58.1% of revenues in the prior quarter and $63.3 million or 58% in the fiscal third quarter of 2015.

除光學產品以外的多元化產品組合之強勁表現，帶動其較前一季成長 21.8% 至 2,800 萬美元。2016 會計年度第三季經調整毛利為 8,150 萬美元，或占營收 57.3%；相較之下，前一季為 7,760 萬美元（占營收 58.1%），2015 會計年度第三季為 6,330 萬美元（占營收 58%）。

Gross margin quarter-to-quarter was down sequentially due to the following, lower gross margin products from fabs, we are in the process of consolidating into our Lowell facility, lower gross margins than average for FiBest revenue as products have not yet fully transitioned to incorporating MACOM components and a decline in gross margins for PON Lasers due to forward-pricing in exchange for volume orders. PON lasers still contributed gross margin above our target operating model of 60%.

毛利率季對季下滑，原因如下：來自晶圓廠（fabs）的較低毛利產品（我們正將其整併至 Lowell 廠區）、FiBest 營收的毛利率低於平均（因產品尚未完全轉換為採用 MACOM 元件），以及 PON 雷射因以預先定價換取大量訂單而導致毛利率下降。PON 雷射的毛利率仍高於我們目標營運模型的 60%。

In fact, excluding the recent FiBest and Metelics, acquisitions gross margin exceeded our target gross margin at 62%. In terms of operating expenses for the fiscal third quarter, total adjusted operating expenses were $46.6 million, compared to $45.2 million in the prior quarter and $37.5 million in the prior year's quarter. Operating expenses were up 3.2% sequentially, about one half the rate of sequential revenue growth primarily due to higher variable cost.

事實上，若排除近期的 FiBest 與 Metelics，併購業務的毛利率為 62%，高於我們的目標毛利率。就會計年度第三季的營業費用而言，調整後營業費用總額為 4,660 萬美元，較前一季的 4,520 萬美元以及去年同期的 3,750 萬美元為高。營業費用季增 3.2%，約為營收季增率的一半，主要係因變動成本較高所致。

Adjusted income from operations were $34.90 million or 24.5% of revenue. This compares to $32.4 million or 24.3% of revenue in the prior quarter and $25.8 million or 23.6% of revenues in the prior year's quarter. Adjusted interest expense of $4.1 million for the fiscal third quarter was flat compared to the prior quarter and the prior year's quarter.

調整後營業利益為 3,490 萬美元，占營收 24.5%。相較之下，前一季為 3,240 萬美元，占營收 24.3%；去年同期為 2,580 萬美元，占營收 23.6%。會計年度第三季調整後利息費用為 410 萬美元，與前一季及去年同期持平。

Other adjusted income of $1.9 million represents revenue from a consulting contract from our automotive business investment that continues through FY17. Our normalized income tax rate for the fiscal third quarter was 15%. This tax rate was consistent with the prior fiscal quarter and down from 18% in the fiscal third order of 2015. We paid cash taxes of approximately $400,000 in the fiscal third quarter.

其他調整後收益 190 萬美元，係來自我們汽車業務投資的一份顧問合約收入，該合約將持續至 FY17。我們會計年度第三季的常態化所得稅率為 15%。此稅率與前一會計季度一致，且較 2015 會計年度第三季的 18% 下降。我們在會計年度第三季支付的現金稅約為 40 萬美元。

Our fiscal third-quarter adjusted net income was $27.9 million or $0.51 per fully diluted share, compared to fiscal second quarter net income of $25.7 million, or $0.46 per diluted share, and net income of $18.4 million, or $0.33 per fully diluted share in the prior year's quarter. EPS grew sequentially 10.9% and 54.5% over the same quarter in the prior-year. The share count used to compute adjusted fully diluted EPS was 55.3 million shares for the fiscal third quarter, 55.4 million shares for the fiscal second quarter of 2016, and 55.2 million shares in the fiscal third quarter of 2015.

我們會計年度第三季調整後淨利為 2,790 萬美元，或每股完全稀釋後 0.51 美元；相較之下，會計年度第二季淨利為 2,570 萬美元，或每股稀釋後 0.46 美元；去年同期淨利為 1,840 萬美元，或每股完全稀釋後 0.33 美元。每股盈餘（EPS）季增 10.9%，較去年同期成長 54.5%。用於計算調整後完全稀釋 EPS 的股數為：會計年度第三季 5,530 萬股、2016 會計年度第二季 5,540 萬股、以及 2015 會計年度第三季 5,520 萬股。

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $42.1 million, up 7.9% from $39 million in the prior fiscal quarter and up 45.2% from $29 million in the prior year's quarter. GAAP cash flow from operations was $19.2 million in the fiscal third quarter as compared to $19.6 million in the fiscal second quarter or 68.9% and 76.3% respectively of non-GAAP net income. Inventories grew $10.1 million over the prior fiscal quarter as we manufactured buffer stocks in advance of previously noted fab closings and longer manufacturing cycle for certain products including long haul and Metro Optical.

調整後 EBITDA（息稅折舊攤銷前盈餘）為 4,210 萬美元，較前一會計季度的 3,900 萬美元成長 7.9%，較去年同期的 2,900 萬美元成長 45.2%。會計年度第三季依 GAAP 計算之營運活動現金流量為 1,920 萬美元，相較會計年度第二季為 1,960 萬美元；分別相當於非 GAAP 淨利的 68.9% 與 76.3%。由於我們在先前提及的晶圓廠關閉之前預先生產緩衝庫存，以及部分產品（包含長距離與都會光學）製造週期較長，存貨較前一會計季度增加 1,010 萬美元。

After deducting capital expenditures for the third and second fiscal quarters, free cash flow was $12.1 million and $8.6 million respectively or 43.3% and 33.5% of adjusted non-GAAP net income for the fiscal third and second quarter respectively. Turning to the balance sheet, at the fiscal quarter end our cash, cash equivalents and short-term investments were approximately $90.6 million, up $8.8 million over the fiscal second quarter. Accounts receivable were flat at $92 million at the end of the prior quarter. Day sales outstanding were 59 days, compared to 62 days at the end of the prior fiscal quarter.

扣除會計年度第三季與第二季的資本支出後，自由現金流分別為 1,210 萬美元與 860 萬美元，分別相當於會計年度第三季與第二季調整後非 GAAP 淨利的 43.3% 與 33.5%。轉至資產負債表，截至該會計季度末，我們的現金、約當現金與短期投資約為 9,060 萬美元，較會計年度第二季增加 880 萬美元。應收帳款於前一季末為 9,200 萬美元，本季持平。應收帳款週轉天數（DSO）為 59 天，較前一會計季度末的 62 天下降。

Inventory was $117.1 million compared to $107 million in the prior quarter. Inventory turns were 2.1 times flat with the prior quarter. We're building inventory in line with our future revenue expectations and specifically to allow for buffer stocks for customers affected by the closing and consolidation of former Metelics fab into our Lowell fab and, as noted already, due to a longer manufacturing cycle for certain products including optical.

存貨為 1.171 億美元，較前一季的 1.07 億美元增加。存貨週轉率為 2.1 次，與前一季持平。我們依據未來營收預期建立存貨，並特別為受前 Metelics 晶圓廠關閉與整併至我們 Lowell 晶圓廠影響的客戶準備緩衝庫存；此外，如先前所述，部分產品（包含光學）製造週期較長亦是原因之一。

Conversely, our distribution and channel inventories are at the lowest level in two years. Long-term debt was $340.6 million, inclusive of acquired capital leases, and we had $130 million of availability in an undrawn credit line. Capital expenditures in the fiscal third quarter were $7.1 million, or 5% of revenue, compared to $11 million, or 8% of revenue in the fiscal second quarter.

相對地，我們的經銷與通路端存貨處於兩年來最低水準。長期負債為 3.406 億美元（包含併購取得之資本租賃），且我們在未動用的授信額度中仍有 1.3 億美元可用額度。會計年度第三季資本支出為 710 萬美元，占營收 5%；相較之下，會計年度第二季為 1,100 萬美元，占營收 8%。

Capital expenditures are necessary as we continue to grow our engineering resources, design centers and on-site customer support of steep ramps and customer design wins in base station and in data centers as well as expanding wafer test and packaging capability and capacity for GaN and high-speed lasers. Related depreciation expense for the fiscal third quarter was approximately $5.3 million, or compare to $4.8 million in the prior quarter and $3.3 million in the prior year's quarter. Our depreciation expense is a fraction of our capital expenditures, which is logical based upon our accelerating growth but in the short-term is negative to free cash flow.

隨著我們持續擴充工程資源、設計中心，以及針對基地台與資料中心領域快速放量與客戶設計導入（design win）的駐點客戶支援，同時擴增 GaN 與高速雷射的晶圓測試與封裝能力與產能，資本支出屬必要投入。會計年度第三季相關折舊費用約為 530 萬美元，相較前一季為 480 萬美元、去年同期為 330 萬美元。我們的折舊費用僅占資本支出的一小部分，這在我們加速成長的情況下是合理的，但短期內會對自由現金流造成負面影響。

Specifically, fiscal year-to-date we generated positive free cash flow of $29.5 million including $14 million of depreciation expense and capital expenditures of $24.9 million. This artifact impacts free cash flow by $10.9 million. Before handing it back to John, I would like to provide a quick update on our ongoing litigation with Infineon Technologies.

具體而言，本會計年度截至目前我們已產生正的自由現金流 2,950 萬美元，其中包含 1,400 萬美元的折舊費用與 2,490 萬美元的資本支出。此一會計上的差異使自由現金流受到 1,090 萬美元的影響。在把話題交回給 John 之前，我想就我們與 Infineon Technologies 之間持續進行的訴訟提供一個簡要更新。

As you know, last quarter we initiated legal action to confirm and defend MACOM's contractual rights to use pioneering and patented GaN on silicon technology developed by Nitronex in MACOM's core markets. Infineon recently disclosed new information that we believe explicitly confirms our claims in that litigation.

如各位所知，上季我們提起法律行動，以確認並捍衛 MACOM 依合約在其核心市場中使用由 Nitronex 開發、具開創性且已取得專利之矽基 GaN 技術的權利。Infineon 近期揭露了新的資訊，我們認為該資訊明確證實了我們在該訴訟中的主張。

Infineon has in fact been developing certain products that it is prohibited from marketing or selling based on our agreements. Based on this information, we have added new claims of breach of contract to the case as of the last week. We're encouraged by Infineon's response so far, which is been to engage in procedural delay tactics in an attempt to avoid, as the lawyers would say, engaging on the merits of our claims.

事實上，Infineon 一直在開發某些產品，而依據我們的協議，其被禁止行銷或銷售該等產品。基於此資訊，我們已於上週將新的違約主張加入本案。我們對 Infineon 迄今的回應感到鼓舞；其回應是採取程序性拖延策略，試圖避免——用律師的說法——就我們主張的實體內容進行交鋒。

We're confident that our full GaN rights remain in force and effect and expect the federal court to confirm those rights. I reiterate, the outcome of this litigation is immaterial to our near-term operating results, the litigation has everything to do with securing long-term investment returns for MACOM shareholders. As we have invested in moving the industry, technology and society forward. Back to you, John

我們有信心，我們完整的 GaN 權利仍然有效並持續生效，並預期聯邦法院將確認該等權利。我再次強調，這起訴訟的結果對我們短期營運成果並不重大；此訴訟完全是為了確保 MACOM 股東的長期投資報酬。因為我們已投入資源推動產業、技術與社會向前發展。交回給你，John。

Thanks, Bob, and to continue with the GaN update, on the customer engagement front, we remain on track with MACOM GaN adoption in base stations, with customer forecasts now showing volume production programs beginning in the first half of 2017. We did experience a slight setback last quarter. Our Gen4 process qual slipped six weeks from July to mid-September. Some of our qual lots had been mis-processed during fabrication so we had to restart the material.

謝謝你，Bob。接續 GaN 的更新，在客戶互動方面，我們在基地台領域的 MACOM GaN 導入仍按計畫推進，客戶預測目前顯示量產計畫將於 2017 年上半年開始。我們在上季確實遇到一個小挫折：我們的 Gen4 製程認證（qual）從 7 月延後了六週至 9 月中旬。由於部分認證批次在製造過程中處理錯誤，我們必須重新啟動材料。

The new lots are now in-house and on track for this final step in qualification. It's important note that this slip was not in the critical path and will have no impact to the ramp of production revenue. Customer design-ins continued in parallel and remain on track without delay.

新的批次目前已在廠內，並按計畫進行認證的最後一步。需要強調的是，這次延後並不在關鍵路徑上，且不會影響量產營收的爬坡。客戶端的設計導入同時並行，且仍按計畫進行，沒有延誤。

Last quarter we successfully delivered complete amplifier lineups, meeting key program milestones for our first production programs at two tier 1 customers. We now have purchase orders in-house for prototype quantities servicing mainstream and emerging higher frequency 4G LTE bands. Customers have begun sharing their own demand forecasts such that we can align our own capacity ramps accordingly.

上季我們成功交付完整的功率放大器產品線，並達成兩家一線（tier 1）客戶首批量產計畫的關鍵專案里程碑。我們目前已收到用於原型數量的採購訂單，涵蓋主流與新興的較高頻 4G LTE 頻段。客戶已開始分享其自身的需求預測，使我們能相應地調整自身的產能爬坡。

Some of these initial programs are at the platform level, which means once we qualify the initial radio then MACOM can more readily proliferate across customer programs. This is key in terms of time-to-revenue and the rate of growth and adoption in 2017. We have now successfully completed customer design reviews for the first of these platform designs.

其中部分初期計畫是在平台層級進行，這表示一旦我們完成初始無線電的認證，MACOM 便能更容易在客戶的各項計畫中擴散導入。這對於 2017 年的營收實現時間（time-to-revenue）以及成長與採用速度至關重要。我們現已成功完成其中第一個平台設計的客戶設計審查。

Again, in summary, we remain on track with customer forecasts showing volume production programs beginning in the first half of 2017. Okay, switching over to Optical. In aggregate, our Optical business grew 4.4% sequentially and now constitutes 53% of our total business. Overall, based on our customers quantitative feedback, the PON market saw sequential decline in unit shipments in the June quarter due to a short-term inventory correction.

再次總結，我們仍按計畫推進，客戶預測顯示量產計畫將於2017年上半年開始。好，接著切換到光學業務。整體而言，我們的光學業務較前一季成長4.4%，目前占我們總業務的53%。總體來看，根據客戶的量化回饋，PON市場在6月季度的出貨量因短期庫存修正而較前一季下滑。

In line with that, we saw a sequential decline of 23% in laser drivers and TIAs shipped in the PON. At the same time, our sales of lasers in the PON increased by 32%, as we believe we expanded share by more than 20 percentage points in one quarter. Customers have naturally begun consolidating their supplier base down to a few viable alternatives including MACOM. We estimate our market share in Q3 for lasers and PON to now be at 68%. So in aggregate, our share expansion in lasers more than compensated for the soft market conditions such that the total sales in the PON increased sequentially by 10%.

與此一致，我們在PON中的雷射驅動器與TIA出貨量較前一季下降23%。同時，我們在PON中的雷射銷售成長32%，因為我們相信單季市占擴大超過20個百分點。客戶也自然開始將供應商基礎整併為少數幾家可行替代方案，其中包括MACOM。我們估計Q3在PON雷射的市占率目前已達68%。因此整體而言，我們在雷射的市占擴張，足以彌補疲弱的市場狀況，使PON總銷售額較前一季成長10%。

This success, and the presence of strong market headwinds, highlights the economic benefits and the operating leverage that we get from our wafer-scale manufacturing for Etched Facet Lasers, which coupled with our preeminent market position enabled us to sustain financial performance even in compressed market conditions. As a natural consequence of these kind of share gains where we support forward pricing in return for volume, we did see some degree of pressure on gross margin, which we estimate as less than 100 basis points in our fiscal third quarter.

這項成功，以及強勁的市場逆風，凸顯了我們在蝕刻端面雷射（Etched Facet Lasers）晶圓級製造所帶來的經濟效益與營運槓桿；再加上我們領先的市場地位，使我們即使在市場受壓縮的情況下仍能維持財務表現。作為這類市占提升的自然結果——我們以支持前瞻定價換取出貨量——我們確實看到毛利率承受一定壓力，我們估計在本財年第三季低於100個基點。

That said, adjusted gross margin on lasers, even in PON, remain accretive to corporate margins and are above our target model of 60%. Tying off our adventure in lasers and photonics dating back to December, 2014, in the six quarters since our acquisition of BinOptics, we've achieved our goal of doubling revenues and quadrupling laser unit shipments.

即便如此，雷射（即使在PON）之調整後毛利率仍對公司整體毛利率具增益，且高於我們60%的目標模型。回顧我們自2014年12月以來在雷射與光子領域的布局，自收購BinOptics以來的六個季度中，我們已達成將營收倍增、雷射出貨量提升至四倍的目標。

Leveraging MACOM's operational expertise in manufacturing compound semiconductors, we've solved a significant strategic sourcing problem for customers globally and we've become a proven strategic supplier, opening the door for MACOM across all high-speed network components, wired, wireless and optical. We did this in arguably the single most cost sensitive and operationally demanding end market in Optical. We now set our sights squarely on the next big opportunity, data centers.

憑藉MACOM在化合物半導體製造方面的營運專長，我們為全球客戶解決了一項重大的策略性採購問題，並成為經驗證的策略供應商，為MACOM在所有高速網路元件（有線、無線與光學）領域打開大門。我們是在可說是光學中最具成本敏感度、且對營運要求最嚴苛的終端市場做到這一點。現在我們將目標明確鎖定在下一個重大機會：資料中心。

Our Etched Facet technology and manufacturing infrastructure can service the expected ramp in data center volumes which, much like PON, will benefit from the available capacity and cost structure from our Lowell fab.

我們的蝕刻端面技術與製造基礎設施可支援資料中心預期的放量；這與PON類似，將受益於我們Lowell晶圓廠的可用產能與成本結構。

Switching to Metro, long haul and Data Centers, in total our business in this area grew 9.3% last quarter. Strength in Metro drove growth on top of what otherwise was flat demand in long haul. Revenue last quarter was in fact supply constrained due to limited access to key materials to support aggressive product ramps. We see full recovery and an unconstrained supply in this our fourth fiscal quarters.

切換到都會網（Metro）、長途（long haul）與資料中心，該領域合計我們上季業務成長9.3%。都會網的強勁表現帶動成長，而長途需求則大致持平。上季營收實際上受到供應限制，原因是取得支援積極產品放量所需的關鍵材料受限。我們預期在本財年第四季可完全恢復並達到不受限的供應。

Rounding out our Optical segments, fiber backhaul declined 15% sequentially due to temporary softening in demand in mobile buildups. Likewise, wireless backhaul decline 10% as well. To close on my comments on the Optical business, let me make some observations. There was a lot of chatter last quarter about MACOM's exposure to volatile optical demands. Given our recent success, many claim that we would now be exposed to an inevitable surprises. Acknowledging there was a lot of that negative sentiment out there, let me emphasize something.

在光學各分項的其餘部分，光纖回程（fiber backhaul）因行動網路建設需求暫時走弱而較前一季下滑15%。同樣地，無線回程（wireless backhaul）也下滑10%。在結束我對光學業務的評論前，我想提出一些觀察。上季市場上有很多討論，談到MACOM對波動性光學需求的曝險。鑑於我們近期的成功，許多人聲稱我們現在將暴露於不可避免的意外之中。承認外界確實存在不少負面情緒，我想強調一點。

We are unique in applying semiconductor economics to the optical networking industry. We invest in proprietary products and technologies that address broad market demands, remaining agnostic to industry standards, network configurations, transceiver suppliers and form factors.

我們的獨特之處在於，將半導體的經濟學應用於光網路產業。我們投資於專有產品與技術，以滿足廣泛的市場需求，並對產業標準、網路架構、收發器供應商與外形規格（form factors）保持中立。

That model stands in stark contrast with those who service the captive needs of one standard, one part of the network or one transceiver supplier. That's where you see surprises. To us, there are many such puts and takes each quarter that tend to offset one another.

這種模式與那些只服務於單一標準、網路某一部分或單一收發器供應商之封閉需求的業者形成鮮明對比。意外往往就出現在那裡。對我們而言，每一季都有許多此消彼長的因素，往往會彼此抵銷。

Overall, our Optical business should generally rise with the tide of secular growth, that is the insatiable demand for internet bandwidth. That's the advantage of applying semiconductor economics to an area of strong secular growth. And that's our model for growth at MACOM. And that's why, in aggregate, our Optical business grew sequentially in Q3 despite multiple isolated headwinds and that's why we believe our success in optical is sustainable over the short, medium, as well as, long term.

整體而言，我們的光學業務通常會隨著長期結構性成長的浪潮而上升，也就是對網際網路頻寬永不滿足的需求。這就是把半導體經濟學應用在具強勁長期成長趨勢領域的優勢。這也是MACOM的成長模式。因此，綜合來看，儘管面臨多項分散且個別的逆風，我們的光學業務在Q3仍較前一季成長；也因此我們相信，我們在光學領域的成功在短期、中期以及長期都具有可持續性。

Now rounding out the rest the networks, recognizing that 20% of total sales was wired and wireless products outside of Optical, we saw a strong sequential growth on the back of new MMICs, such as switches, LNAs, mixers, frequency multipliers, VCOs and power amplifiers. As articulated at our Analyst Day, this is a wide open playing field for MACOM as we regain our natural market share from traditional competitors like the Hittite, Qorvo and Microsemi. Moving on to active antennas, another bright spot last quarter was the progress that we saw in our A&D business, notably in active antennas.

接著談網路業務的其餘部分，考量到總銷售額中有20%來自光學以外的有線與無線產品，我們在新款MMIC（單片微波積體電路）的帶動下，看到強勁的季增成長，例如開關、LNA、混頻器、倍頻器、VCO與功率放大器。如同我們在分析師日所闡述的，這對MACOM而言是一個非常開放的競爭場域，我們正從Hittite、Qorvo與Microsemi等傳統競爭對手手中，重新奪回我們原本的自然市占。接著談主動式天線，上季另一個亮點是我們在A&D業務（航太與國防）方面的進展，尤其是在主動式天線。

While revenue last quarter was relatively flat, program awards and purchase orders for A&D are shaping up to deliver twice the growth rate of our target operating model through FY17. This initial growth wave comes on the back of MMICs, not yet Tiles, as we outlined at our Analyst Day. With regards to SPAR Tiles, we're still in the very early stages of marketed adoption.

雖然上季營收相對持平，但A&D的專案得標與採購訂單正逐步成形，預期在FY17之前可帶來達到我們目標營運模型兩倍的成長率。這一波初期成長主要由MMIC帶動，而非Tiles，正如我們在分析師日所說明。至於SPAR Tiles，我們仍處於市場採用的非常早期階段。

The defense programs where we have the most traction are actually among the most sensitive in terms of national security interest so we're unlikely to disclose successes even as we secure the business. Now that said, on the civil side, we understand the FCC under legislative direction has begun the process to potentially sell L-band spectrum, part of the proceeds of which is slated to fund civil radar dployments. So it actually appears that the opportunity may be pulling into the left with some of these civil programs possibly materializing sooner than we previously expected.

我們最有進展的國防專案，實際上在國家安全利益方面屬於最敏感的類別，因此即使我們拿下業務，也不太可能對外揭露成功案例。話雖如此，在民用端，我們了解到FCC在立法指示下已開始推動可能出售L頻段頻譜的程序，其中部分收益預計用於資助民用雷達部署。因此看起來，部分民用專案的機會可能正在提前（pulling into the left），也就是可能比我們先前預期更早實現。

In preparation for that possibility, again moving the ball down the field each quarter, this quarter, our fourth fiscal quarter will complete shipments for the first full-scale prototype MPAR system for deployment at the Severe Storm Center in Norman, Oklahoma. So all told, across both civil and defense programs, MMICs as well as Tiles, the short-, medium- and long-term growth prospect in A&D is attractive along with optical and GaN as articulated at our Analyst Day. With that, let's talk about next quarter guidance.

為了因應這種可能性——同樣地，我們每一季都在推進進度——本季，也就是我們的財年第四季，將完成首套全尺寸原型MPAR系統的出貨，該系統將部署於奧克拉荷馬州諾曼市（Norman, Oklahoma）的嚴重風暴中心（Severe Storm Center）。總而言之，涵蓋民用與國防專案、MMIC以及Tiles，A&D在短期、中期與長期的成長前景都相當具吸引力，並與我們在分析師日所闡述的光學與GaN一樣。接下來我們談下一季的財測指引。

For the fiscal fourth-quarter ending September 30, 2016, we expect revenue to be in the range of $148 million and $152 million, adjusted gross margin between 57% and 59% and adjusted earnings per share between $0.54 and $0.58 on anticipated an 56 million fully diluted shares outstanding. Now adding some color to that guidance, we expect A&D to experience a breakout quarter in terms of sequential growth on the back of MMICs, with Multi-market networks showing sequential growth as well.

就截至2016年9月30日的財年第四季而言，我們預期營收介於1.48億至1.52億美元之間，調整後毛利率介於57%至59%，在預期完全稀釋流通股數為5,600萬股的情況下，調整後每股盈餘介於0.54至0.58美元。再補充一些指引的細節，我們預期A&D在MMIC帶動下，將在季增成長方面出現突破性的一季；同時，多市場網路（Multi-market networks）也將呈現季增成長。

We remain cautious on any significant recovery in the PON market. We also expect dilution of gross margins to continue for another quarter as we integrate recent acquisitions. We expect that, combined with higher variable compensation, will moderate the rate of growth of adjusted EPS next quarter.

我們對PON市場出現任何顯著復甦仍保持審慎。我們也預期，隨著我們整合近期收購案，毛利率被稀釋的情況將再持續一季。我們預期這一點，加上較高的變動薪酬，將使下一季調整後EPS的成長速度趨於溫和。

Let me make one final observation, hitting the midpoint of our guidance would yield annual revenue and adjusted EPS growth of approximately 30% and 50% respectively over FY15. As outlined at our Analyst Day, we can achieve this through the combination of disciplined M&A, integration and organic execution across multiple secular growth drivers, not just optical, and within those secular growth drivers, not just PON. We're realizing our aggressive market share ambitions and we are executing in the face of tough market conditions.

最後我再提出一點觀察：若達到我們指引的中位數，將使年度營收與調整後EPS相較FY15分別成長約30%與50%。如同我們在分析師日所說明的，我們可透過有紀律的併購、整合，以及在多個長期結構性成長驅動因素上的有機執行來達成——不僅僅是光學；而在這些長期成長驅動因素之中，也不僅僅是PON。我們正在實現積極的市占目標，並在艱困的市場環境下持續執行。

Based upon another quarter of product execution and customer progress, our confidence and excitement grows daily that our prospects for long-term growth and profitability are fully in line with our vision as articulated at our Analyst Day in New York. With that, I like to close today's scripted remarks by thanking the team for yet another quarter of solid execution. Operator, you can now open the call to questions.

基於又一季的產品執行與客戶進展，我們對長期成長與獲利的前景之信心與期待與日俱增，並且完全符合我們在紐約分析師日所闡述的願景。最後，我想以感謝團隊在本季再次展現紮實的執行力，作為今天預先準備講稿的結語。接線員，現在可以開放提問。

Thank you, sir.

謝謝您，先生。

(Operator Instructions)

（接線員指示）

Blayne Curtis, Barclays.

Blayne Curtis，巴克萊。

This is Tom O'Malley on for Blayne Curtis. Congrats on top line results. Can you talk a little bit more about the margin puts and takes as we head through June and September and maybe even into December here? Can you talk about levers both ways? How you see them kind of shaking out in the next few quarters?

我是代替 Blayne Curtis 的 Tom O'Malley。恭喜營收表現。能否再多談一些，隨著我們走過 6 月與 9 月，甚至到 12 月，毛利率的拉抬與壓力來源？能否談談兩方面的槓桿？您如何看待未來幾季的走勢？

Yes, good question. So forward-looking we continue to have growth in new products, a lot of those new products as we articulated and showed during the Analyst Day are in fact in excess of 70% gross margin. So we should be able to see continued steady progress on organic gross margin, that is before the acquisitions, Metelics and FiBest acquisitions.

是的，問得很好。就前瞻來看，我們新產品仍持續成長；如同我們在分析師日所闡述並展示的，許多新產品的毛利率其實超過 70%。因此，我們應能看到有機毛利率持續穩健改善，也就是在併購（Metelics 與 FiBest 併購案）之前的毛利率表現。

But that said, depending on what, how the PON market plays out, we're currently very cautious in terms of predicting any better conditions, so that pressure on gross margins remains for another quarter or so. We have a very aggressive roadmap on further reducing COGS in that space but modest quarter-to-quarter improvements. So in general, that will remain above our 60% target, kind of our organic gross margin. It was 62% last quarter and should remain there.

不過話說回來，取決於 PON 市場的發展，我們目前在預測環境好轉方面仍非常謹慎，因此毛利率的壓力可能還會再持續一季左右。我們在該領域有非常積極的路線圖以進一步降低 COGS（銷貨成本），但季度間的改善會較為溫和。整體而言，有機毛利率將維持在我們 60% 目標之上；上季為 62%，應會維持在該水準。

We're in pretty good shape. And then quarter-by-quarter we will see progression as we complete the closings of the Metelics factories in Sunnyvale and Londonderry, New Hampshire. And those are the key actions to get the gross margin -- drag the dilution off from Metelics. And then FiBest is a little more complex because it has to do with the amount of MACOM first party content that goes into the modules and there is a whole bunch of levers that are going in there. But we're pretty confident that over the next two quarters we will get all of that dilutive effect off the books and we should be back over 60%

我們的狀況相當不錯。接下來按季來看，隨著我們完成關閉 Metelics 位於 Sunnyvale 與新罕布夏州 Londonderry 的工廠，毛利率將逐步改善。這些是移除 Metelics 稀釋效應、消除對毛利率拖累的關鍵行動。至於 FiBest 則稍微複雜一些，因為涉及 MACOM 自製內容在模組中的占比，當中有一整套可調整的槓桿。但我們相當有信心，在接下來兩季內可把這些稀釋效應完全從帳上移除，毛利率也應回到 60% 以上。

Great, thank you. And just one more quick one. In terms of GaN you're saying there's some volume production in the first half 2017. Can you give us any kind of vector on that? And where we should look for some kind of the first results? I know in Defense it's a little harder to track, but where should we look for some progress in GaN?

很好，謝謝。再快速問一題。關於 GaN，您提到 2017 年上半年會有一些量產。能否給我們一些方向？我們應該從哪裡看到第一批成果？我知道在國防領域比較難追蹤，但在 GaN 方面我們應該看哪些進展指標？

Yes, well base stations is the existing market. The other big market opportunity is in RF energy. We had fantastic launch of our 300 watt transistor at MTT and IMS. Ended up with, I think we were voted number one GaN product coming out of the show.

好的，基地台是既有市場。另一個很大的市場機會在 RF 能源。我們在 MTT 與 IMS 上推出 300 瓦電晶體，反應非常好；最後我想我們被票選為展會中排名第一的 GaN 產品。

But base stations is the market that exists today. We are squarely locked onto multiple first-tier guys. It's a very concentrated markets so the targets are very well set. As I mentioned in the scripted remarks, we've got the first programs locked in. Customers are sharing demand forecasts now, which is very vitally important because we need to make the capital investments and scaling our capacity consistent with the customer expectations through next year.

但基地台是目前已存在的市場。我們正鎖定多家一線客戶。這是一個高度集中的市場，因此目標非常明確。如同我在講稿中提到的，我們已鎖定第一批專案。客戶現在也開始分享需求預測，這非常關鍵，因為我們需要進行資本投資並擴充產能，以符合客戶對明年的期待。

Beyond the inflection point that we expect in that first half of the year, it is very hard to predict the rate beyond those initial first programs. It has to do how quickly we proliferate from the first radio designs to the 2nd, 3rd,10th and 20th designs. And that turns out to be the experiential. Experiential with the OEMs and experiential with the service providers. So we -- I should say, our growth model at 20% assumes very, very modest GaN contribution. If that really takes off like it could then it's all upside to the growth model.

至於我們預期在上半年出現的拐點之後，後續成長速度就很難預測，因為取決於我們能多快從第一個無線電設計擴散到第 2、3、10 乃至第 20 個設計。而這其實取決於經驗累積——OEM 的經驗，以及服務供應商的經驗。因此，我應該說，我們 20% 的成長模型假設 GaN 的貢獻非常、非常有限。如果它真的像可能的那樣起飛，那就會成為成長模型的額外上行空間。

Thanks a lot and thanks for the clarity on Optical.

非常感謝，也謝謝你對光學業務的清楚說明。

You're welcome

不客氣。

Mark Delaney, Goldman Sachs.

Mark Delaney，高盛。

Good afternoon and thanks very much for taking the questions. First question to follow up on the gross margin topic. I think you reported gross margin in total for Aeroflex/Metelics and FiBest was running around 30% this past quarter. Once that's fully integrated what sort of a gross margin do you think you can achieve for those acquired companies?

下午好，謝謝你們回答問題。第一題延續毛利率的話題。我想你們本季所揭露的 Aeroflex/Metelics 與 FiBest 的合計毛利率大約在 30% 左右。等到完全整合後，你們認為這些被併購公司的毛利率可以達到什麼水準？

It'll be consistent with the rest of our business, our targets.

會與我們其他業務一致，符合我們的目標水準。

Okay, that's helpful. And then also a follow-up on the GaN for base station topic. John, you were talking about multiple customers in, at least in first radio, could you clarify? I mean if it's only the initial deployments for some -- that your customers are looking for, what sort of revenue you could maybe get in 2017? And then how many customers and the revenue opportunity, could it be in 2017 if you continue to see follow-on orders for GaN base stations next year.

好的，這很有幫助。接著追問基地台用 GaN 的話題。John，你提到有多個客戶、至少在第一代無線電上；能否釐清一下？我的意思是，如果只是你們客戶在做某些初期部署，你們在 2017 年可能取得多少營收？另外，如果明年持續看到 GaN 基地台的後續訂單，2017 年可能有多少客戶、以及營收機會可能是多少？

That speculation about how much it can be next year is what I'm trying to avoid. As you know, Mark, we have a Management style where we're really trying to be -- set expectations such that we can deterministically deliver and meet and beat. So as I said, our 20% growth model assumes, frankly, negligible contribution from that. Not because we believe that, it's just that we don't want to set expectations for something which is not squarely in our control.

你在推測明年可能有多少，正是我想避免的。如你所知，Mark，我們的管理風格是希望設定我們能夠確定交付、並且達成甚至超越的預期。因此如我所說，我們 20% 的成長模型坦白講假設其貢獻可忽略不計。不是因為我們相信會如此，而是我們不想對一個不完全在我們掌控之內的事情設定市場預期。

But, when you talk about customer adoption, you talk about customer risk aversion and service provider experience. All indicators are extremely positive. There's kind of a herd mentality in these markets where you start making progress with customer A and customer B and C start moving.

不過，談到客戶採用，你會談到客戶的風險趨避以及服務供應商的使用經驗。所有指標都非常正面。這些市場有某種「羊群效應」：當你在客戶 A 取得進展時，客戶 B、C 就會開始跟進。

And then customer D says, wait, we're too late. And we've hit that critical mass so to me, at least in my mind, the question about MACOM GaN adoption and base station is behind us. The real issue is how quickly we can proliferate across and it gets exactly to your question is how much of that ramp do we experience in the second half of 2017. And again those inflection points and ramps are, frankly, nearly impossible to predict.

接著客戶 D 會說，等等，我們太晚了。我們已經達到那個臨界規模，所以在我看來，至少在我心中，關於 MACOM 的 GaN 在基地台的採用與否，已經不是問題。真正的問題是我們能多快擴散到更多設計上；而這也正好回到你的問題：我們在 2017 年下半年會經歷多大幅度的爬坡。同樣地，這些拐點與爬坡速度坦白說幾乎不可能精準預測。

That's helpful. And one last one from me on PON. And again, I appreciate the incremental color the Company provided this quarter on that segment. I think last call, John, you had mentioned there was maybe the potential for the PON to grow next year. Now you talked about seeing an inventory reduction and a more cautious outlook. Can you just reconcile some of the changes you've seen in the PON market and any more color on that segment would helpful.

這很有幫助。我最後一題關於 PON。也再次感謝公司本季對該區塊提供更多增量資訊。我記得上次電話會議中，John，你提到 PON 明年可能有成長的潛力。現在你談到看到庫存下降以及更審慎的展望。你能否協助我們調和一下 PON 市場出現的變化？若能再多提供一些該區塊的說明也會很有幫助。

That's a great question. So we get a lot, as you can imagine, when you see these doomsday scenarios, a lot of, frankly, competitors coming out with extremely pessimistic comments and results. We made sure we went to all of our customers, got very detailed, quantitative inputs about what their end business is doing, where their inventories stand and where the channel inventories stand.

這是個很好的問題。如你所想像，當你看到這些末日情境時，會有很多——坦白說——競爭對手發表極度悲觀的評論與結果。我們確保逐一拜訪所有客戶，取得非常詳細、量化的資訊，了解他們終端業務的狀況、他們自身的庫存水位，以及通路端的庫存水位。

And the conclusion was interesting. If you add the third and fourth calendar quarter box shipments last year, you do the same thing for the first half of this year and the second half of this year. With what the outlook is it's amazingly constant. What happened was, in the first quarter there was an inventory build. It's about constant at about $52 million per half year so $104 million per the year. But there was $28 million in the first quarter and then a substantial decline in the second quarter.

結論很有意思。如果你把去年曆年第三與第四季的機上盒出貨量加總，再對今年上半年與今年下半年做同樣的加總，依照目前的展望，結果驚人地一致。發生的事情是：第一季出現庫存建立。以每半年約 5,200 萬美元來看大致持平，也就是全年約 1.04 億美元。但第一季增加了 2,800 萬美元，而第二季則出現大幅下降。

Now the indications are, demand is flat, it's healthy. We are being beaten upon for delivering 10G PON designs now. And design wins building upon the 2.5G. Customers are not backing off expectations. There's lots of healthy indications that people like China Mobile have new deployments. So the degree of pessimism last quarter, it's your classic inventory cycle, right? But again, until we see the orders and the shipments recover, we are going to remain cautious in calling it flat. But that's not what our customers are telling us.

目前的跡象顯示，需求持平，而且是健康的。我們現在因為交付 10G PON 設計而承受很大壓力。而且設計導入（design wins）是在 2.5G 的基礎上持續累積。客戶並沒有降低他們的預期。有很多健康的跡象顯示，像中國移動這樣的客戶正在進行新的部署。所以，上季的悲觀程度，其實就是典型的庫存循環，對吧？但再說一次，在我們看到訂單與出貨回升之前，我們在稱之為「持平」這件事上仍會保持謹慎。不過，這並不是我們客戶告訴我們的情況。

Thank you very much

非常感謝

You're welcome

不客氣

Harsh Kumar, Stephens.

Harsh Kumar，Stephens。

Thanks. John, I'm sorry, Bob, question for you, you mentioned three factors for the lower gross margin. If you had to pick one as the major culprit, would that be Metelics and the gross margin associated there?

謝謝。John，不好意思，Bob，這題問你。你提到毛利率較低有三個因素。如果必須選一個作為主要元兇，會是 Metelics 以及其相關的毛利率影響嗎？

It's really equal between the acquisitions. There is -- gross margins are affected by the increased bonuses and variable comp in the quarter. But it's pretty balanced because, as you see, the revenues are pretty equal between the two so they are impact is about equal. But, the visibility towards the Metelics fix, at the moment, based upon FiBest's product mix is a little clearer to us so I think we solve that one first before the second.

其實兩個收購案的影響差不多。毛利率也受到本季獎金增加與變動薪酬（variable comp）提高的影響。但整體相當均衡，因為如你所見，兩者的營收規模幾乎相同，所以影響也大致相當。不過，就 Metelics 的改善（fix）而言，以目前 FiBest 的產品組合來看，我們的能見度比較清楚，所以我想我們會先把那個問題解決，再處理第二個。

Okay, understood. And then you talked about some supply constraints, I think on the Metro side, can I ask you how much revenues you had to leave behind because of that? Was even intangible or just insignificant?

好的，了解。接著你提到一些供應限制，我想是在都會網（Metro）那邊。我可以問一下因此你們大概少了多少營收嗎？是難以量化，還是其實不太顯著？

It would have enhanced our growth rate and would have added to the top line in the $1 million plus range.

那會提高我們的成長率，並且在營收端增加約 100 萬美元以上的規模。

Okay. Fair enough. And then, John, maybe a question for you. You talked at length about your litigation with Infineon. I guess, let's say you go to battle and you win. What would you want? Are you looking for complete stoppage? Do you believe that this is a market that is yours or are you looking to collect some money, punitive damages or maybe even work out a license deal with them eventually?

好的，可以。然後，John，可能問你一題。你花了不少時間談你們與英飛凌（Infineon）的訴訟。我想假設你們上場打並且贏了，你們想要的是什麼？你們是希望對方全面停止？你認為這個市場本來就是你們的？還是你們想要拿到一些金錢賠償、懲罰性賠償，或甚至最後跟他們談出授權協議？

Well, I have be careful what I say because there's confidentiality provisions in the original Nitronix/IR agreement. So we're very cautious to make sure we adhere to everything. The reality is we simply want them to adhere to the agreement that they inherited with the acquisition of IR. It's pretty much that plain and simple. It could not be more black and white and if you read the redacted versions of our claims and our revised claims you will see exactly how black and white it is. And it's pretty much that simple. It's just honor the agreements that you inherited with the purchase of -- with the acquisition of IR

嗯，我必須小心我說的內容，因為原始的 Nitronix/IR 協議裡有保密條款。所以我們非常謹慎，確保遵守所有規定。事實上，我們只是希望他們遵守他們在收購 IR 時所承接的那份協議。就是這麼簡單明瞭。這件事再清楚不過；如果你去看我們主張與修訂主張的刪節版本（redacted versions），你會看到它有多麼黑白分明。基本上就是這麼簡單：請遵守你們在購買——在收購 IR 時所繼承的協議。

That's fair and last one and I'll get back in line. I heard a statement saying that if you hadn't had FiBest and Metelics and all the other sort of one-time things your margins would have been probably 62%, did I hear that correctly

這很合理。最後一題我就回到隊伍後面。我聽到一個說法是，如果沒有 FiBest、Metelics 以及其他各種一次性因素，你們的毛利率可能會是 62%，我聽得對嗎？

Yes, in fact as we noted in the preliminary statement, we enhanced the reporting on the press release and we actually disclose that individually. You can reconcile those two numbers in the revenues and the margins.

是的。事實上，如同我們在初步聲明中提到的，我們在新聞稿中加強了揭露，並且把那些項目分別單獨披露。你可以用營收與毛利率把那兩個數字對起來（reconcile）。

Understood. Thanks, guys.

了解。謝謝各位。

(Operator Instructions)

（接線員指示）

Tore Svanberg, Stifel.

Tore Svanberg，Stifel。

Yes, thanks. This is Erik calling in for Tore. I just wanted to circle back, one clarification, or maybe just a kind of follow the thought. It sounds -- looks like gross margins are kind of moderating a little bit and I think you said that maybe in the next two quarters you might have that cleared up. So when should we -- when do you think about that 60/30 model, how should we be looking at that in terms of our own modeling.

是的，謝謝。我是 Erik，代 Tore 打進來。我想回到前面確認一點，或是延續一下思路。聽起來——看起來毛利率有點在趨於穩定、稍微緩和一些，我想你們說可能在接下來兩個季度就能把它釐清。所以我們應該——你們怎麼看 60/30 模型？就我們自己的建模而言，應該如何看待？

Yes so -- if I can take this one, Bob. So again, gross margins excluding the acquisitions and as we progress through the integration of the acquisitions, we're 62%. And they're progressing past our 60% model. And as we complete those integrations, shut down the two factories with Metelics and also do the actions that we are doing on the FiBest acquisitions, those will be consistent with our 60% model as well. So sometime in the next few quarters as we complete that integration, we'll be north of 62%. So that gross margin is not, to us, the issue of getting to our model.

是的——如果我可以回答這題，Bob。再說一次，排除收購案的影響，並且隨著我們推進收購整合，我們的毛利率是 62%。而且它正高於我們 60% 的模型。當我們完成那些整合、關閉 Metelics 的兩座工廠，並且也完成我們在 FiBest 收購案上正在做的各項措施後，這些都會與我們 60% 的模型一致。因此在接下來幾個季度的某個時間點，當整合完成後，我們會高於 62%。所以對我們而言，毛利率並不是達到模型的問題所在。

On 30% it's all about growth and operating leverage. Recognize we're fully invested in GaN for base stations and RF energy and we're invested in data centers and we're invested in active antennas. A lot of MMICs going after the old Hittite/Qorvo business that's been left on the table. There's a lot of growth that's turning on right now, starting amazingly with MMICs in our catalog business and in A&D. As that growth comes, the drop through is fabulous because we're already fully invested.

至於 30%，關鍵完全在於成長與營運槓桿。請注意，我們已經在基地台與 RF 能源的 GaN 上全力投資，也投資在資料中心，也投資在主動式天線。我們有很多 MMIC 正在搶攻過去 Hittite/Qorvo 留在桌上的業務。現在有很多成長正在啟動，令人驚訝地首先來自我們型錄（catalog）業務以及航太與國防（A&D）的 MMIC。隨著這些成長到來，增量利潤的落地（drop-through）會非常漂亮，因為我們已經完成了全部投資。

So as we grow in the coming quarters and through the next year, through operating leverage we'll meet and surpass 30% and then that progression will continue. It will not stop at 30%.

因此，隨著我們在未來幾個季度以及接下來一年成長，透過營運槓桿我們會達到並超越 30%，而且那個進程會持續，不會停在 30%。

Thank you for that answer

謝謝你的回答

Eric, if I could just refine the comment. 62% is in the current mix of products not a future mix of products that John mentioned.

Eric，如果我可以再精確一下這個說法：62% 是在目前的產品組合下，而不是 John 提到的未來產品組合。

Yes, understand. And then on the -- so on the active antenna business, obviously there's two sides, there's the defense programs. Can you just maybe give a little more insight into that? Are you being a little bit more cautious on that now? And it sounds like civil's being a little bit more of an uptick that you're seeing, any thoughts there?

是的，了解。那再問主動式天線業務——顯然有兩個面向，其中一個是國防專案。你能否再多給一些洞見？你們現在對那部分是否更保守一些？另外聽起來民用端你們看到有些上升動能，有什麼想法嗎？

Yes, so one big point of clarification, if you attended -- for those who attended the Analyst Day in New York, Jack Kennedy presented that active antenna section, started with a description of the short-term, immediate-term opportunity with growing MMICs. MMICs are monolithic microwave ICs, it's the semiconductor content that goes into these active antennas. Whether it's airborne, ground-based, seaborne and what have you. That is front and center right now.

是的，先澄清一個重點：如果你參加了——對於那些參加紐約分析師日的人，Jack Kennedy 在介紹主動式天線那一段時，是先從短期、近期的機會談起，也就是 MMIC 的成長。MMIC 是單晶微波積體電路（monolithic microwave ICs），是這些主動式天線裡的半導體含量。不論是空載、地面、海上等等。這件事現在就是最核心的重點。

So the programs and the purchase orders that we secured in the past quarter, are fully underpinning growth, at least beyond the 20 -- the two times our stated growth rate for the Company. So beyond two times 20%, so that's off to the races. We don't have to wait for tiles and worry about civil versus defense programs so on so. So that's happening regardless.

因此，我們在上一季拿到的專案與採購訂單，已經完全支撐了成長，至少會超過公司所宣示成長率的 20——也就是兩倍。也就是超過 20% 的兩倍，所以已經起飛了。我們不必等到 tile，也不必擔心民用對比國防專案等等。所以不管怎樣，這件事都正在發生。

On the tile stuff, again it's still early days. It's was early days when we presented at the Analyst Day, we thought we were emphasizing that. On the defense side there are some very national security sensitive programs that are on the table. If we land those which very well could happen, it's substantial but there's no way that we can talk about those and we cannot give any forward-looking indication of those, especially what they are and who they're with so it's not worth even discussing the defense side.

至於 tile 的部分，再說一次，仍然是很早期。我們在分析師日簡報時就已經是早期階段，我們也認為我們有強調這點。在國防端，有一些非常涉及國家安全敏感的專案正在洽談中。如果我們拿下來——而且很有可能發生——規模會很可觀，但我們完全無法談論那些專案，也不能提供任何前瞻性指引，尤其是它們是什麼、與誰合作，所以連討論國防端都不值得。

On the civil side, that is medium- to long-term. That is not short-term. We did not represent it that way and it's not. That said, the news right now is the FCC is begun preparing to sell L-band spectrum. I mean, you're talking about --

在民用端，那是中長期，不是短期。我們沒有把它描述成短期，而且也確實不是。話雖如此，目前的消息是 FCC 已開始準備出售 L 頻段頻譜。我的意思是，你在談的是——

The 15th of August.

8 月 15 日。

The 15th of August. Did she say $86 billion is the estimate? And part of those proceeds are to go to building out civil radar deployments. So this is shaping up that, that could be pulling in. And again, we're not representing it as short-term 2017 programs necessarily, although you could start prototype builds in that timeframe. But it still too early to tell on that one, as well.

8 月 15 日。她是說估計是 860 億美元嗎？而且其中一部分收益將用於建置民用雷達部署。所以這件事正在成形，可能會把時程往前拉。再說一次，我們並沒有把它描述成 2017 年的短期專案，雖然在那個時間範圍內你可能可以開始原型建置。但就這一點而言，現在也還太早下定論。

Thank you.

謝謝。

But for the next year, it looks like A&D could actually be driving -- be the star in terms of growth percentage rates for the portfolio.

但就明年來看，A&D 看起來其實可能會成為推動因素——就投資組合的成長百分比而言，可能會是最亮眼的明星。

And that's on top of the heavy growth that you seen in optical. Thanks so much.

而且這還是在你們在光學業務已經看到強勁成長的基礎之上。非常感謝。

Exactly

沒錯。

Steve Smigie, Raymond James.

Steve Smigie，Raymond James。

Great, thanks a lot, guys, and congrats on a nice quarter and guide. I just wanted to ask on the laser business, sounds like are closing of 70% share there, what does the growth profile look like after that? I mean it's an amazing feat in of itself but I can't imagine it could still be pretty good but maybe tapers off a little bit in terms of the growth going forward?

很好，謝謝各位，也恭喜這一季表現不錯以及指引。我想問一下雷射業務，聽起來你們那邊的市占率接近 70%，那之後的成長輪廓會是什麼樣子？我的意思是，這本身就是很驚人的成就，但我很難想像未來成長還能一直這麼好；或許往後在成長方面會稍微趨緩一些？

Yes, we captured something like 20% share quarter-on-quarter. At 70% there isn't much further to go. There just gets to be natural limitations in terms of people supporting alternate vendors and what basically happened was, in these kind of conditions customers really want to go down to a very stable, secure, long-term supply chain which includes a small number of financially stable, long-term suppliers. And frankly, the tertiary vendors just get squeezed out and that is exactly what happened last quarter.

是的，我們大概在單季之間拿下了約 20% 的市占。到了 70% 之後，確實就沒有太多空間再往上了。在人們支持替代供應商方面會有一些自然限制；基本上發生的是，在這種環境下，客戶真的會希望回到非常穩定、安全、長期的供應鏈，而這通常只包含少數幾家財務穩健、能長期供貨的供應商。坦白說，第三線供應商就會被擠出去，而這正是上季發生的事。

Now PON, we can speculate about, is it a flat business? Does it tail off? Does it drop and then pick off -- pick up again with 10G PON deployments? Our stated assumption at the Analyst Day was we thought it was going to fade off. We came right back out at OFC. It became clear to us, not only the customers think it's actually going to grow with 10G PON. Frankly, our assumptions are we're going to sustain share, transition from 2.5G to 10G PON and we'll be -- it'll be a very, very, very nice cash cow for us.

至於 PON，我們可以推測：它會是持平的業務嗎？會逐步走弱嗎？會先下滑，然後隨著 10G PON 部署再回升嗎？在分析師日我們的既定假設是它會逐漸淡出。但我們在 OFC 又重新評估後發現，對我們而言很清楚，不只是客戶認為它會隨著 10G PON 成長。坦白說，我們的假設是我們會維持市占，從 2.5G 轉換到 10G PON，而它會——會成為我們非常、非常、非常好的現金牛。

The growth is in things like CPRI, fronthaul, in mobile infrastructure, but most notably, data centers. The laser technology that we have and the scale and cost structure in Lowell's actually perfect for deployment in data centers, which has the unit volumes of data -- of PON but a value proposition closer to Metro.

成長來自像是 CPRI、前傳（fronthaul）、行動基礎建設，但最值得注意的是資料中心。我們的雷射技術，以及在 Lowell 的規模與成本結構，非常適合在資料中心部署；資料中心的出貨量單位接近 PON，但價值主張更接近都會網（Metro）。

Okay, great. Thanks for that. Thanks for the color there. And I was hoping you just could clarify your comments on Norman, Oklahoma. Was that -- I think you indicated that one was civil? And that's sort of the test deployment and would that one potentially have tiles on it? I know you said all the titles stuff was a ways out, but I was just kind of curious. Just as a milestone if it's actually something going off the trial one where you put some tiles out there, functioning, et cetera?

好的，很好。謝謝你的說明，謝謝提供這些背景。我也想請你澄清一下你們對奧克拉荷馬州 Norman 的評論。那個——我想你提到那個是土木工程？那算是測試部署嗎？那個可能會裝上 tiles 嗎？我知道你說所有 tiles 的事情還要一段時間，但我只是有點好奇。就當作一個里程碑：如果它其實是從試驗案延伸，真的把一些 tiles 放出去、能運作等等？

Yes, so if you remember back to the Analyst Day, we actually had pictures of the Norman, Oklahoma storm center and the round radar that we're -- our first panel is going to be deployed. To be clear, it is the production MPAR panel that we've manufactured and this quarter we'll be completing shipments of tiles that go into the first full-scale implementation.

是的，如果你還記得分析師日，我們其實有展示 Norman, Oklahoma 風暴中心以及那個圓形雷達的照片——我們的第一片面板將會部署在那裡。要說清楚的是，那是我們已經製造完成的量產 MPAR 面板，而本季我們將完成用於第一個全尺寸實作的 tiles 出貨。

The field trials so far has been smaller arrays. This goes to a full scale array for a complete demonstration vehicle for the FAA and NOAA -- which as you can imagine, you need to have that as a critical milestone on the path to triggering the ultimate investments in deployment. And that's the -- beyond the successful field trials, that's the next major milestone and we expected that would tee up when they would be going out for the RFI -- for the production deployments.

到目前為止的場域試驗都是較小的陣列。這次會是全尺寸陣列，用於 FAA 與 NOAA 的完整示範載具——如你所想，這是通往觸發最終部署投資路徑上的關鍵里程碑。而這——在成功的場域試驗之外，這就是下一個主要里程碑；我們預期這會為他們後續針對 RFI——也就是量產部署——的推進做好準備。

Okay, great, thanks very much. Appreciate it. Congrats

好的，很好，非常感謝。感謝你。恭喜。

You are welcome

不客氣。

Quinn Bolton, Needham & Company.

Quinn Bolton，Needham & Company。

Hello, guys. I'll echo my thanks for the additional detail on the business. Just wanted to come back -- again, thanks for the detail on the splits, but just want to sort of ask from the laser side, it sounds like, clearly a good part of that laser business is affected by the PON market and so your comments about caution on PON -- that didn't seem to stop the laser growth in the June quarter. But wondering if you look forward to, perhaps, a flatter market in PON, do we start to see that hit the laser business? And can you give us any sense, within lasers, how much is PON, how much is optical access? If you want to call it non-PON applications?

各位好。我也同樣感謝你們提供更多業務細節。我想再回到——再次感謝你們對拆分的細節，但我想從雷射端再問一下：聽起來雷射業務中很明顯有相當一部分受到 PON 市場影響，所以你們對 PON 謹慎的評論——似乎並沒有阻止 6 月季度雷射的成長。但我想知道，往前看，如果 PON 市場可能更趨平坦，我們是否會開始看到這對雷射業務造成影響？另外你們能否大概說明一下，在雷射之中，PON 佔多少、光接入佔多少？如果你想把它稱為非 PON 的應用。

Yes, I'd say, first of all -- how can I say this? The growth in the June quarter was despite a fairly dramatic sequential decline in demand due to an inventory correction. The reason why we could grow was because we captured 20 points of incremental share, quarter-on-quarter. So that was fortuitous. You can imagine if the decline didn't happen in the end market, what would have happened in terms of our sequential results?

是的，我想先說——我該怎麼說呢？6 月季度的成長其實是在終端需求因庫存修正而出現相當劇烈的季對季下滑的情況下達成的。我們之所以還能成長，是因為我們在單季之間額外拿下了 20 個百分點的市占。所以這算是運氣不錯。你可以想像，如果終端市場沒有下滑，我們的季對季結果會是什麼樣子？

And we could have shipped, by the way. We have the capacity to be able to support that) The reality is that will flatten inevitably because there's limits to how much share you can take. PON, in aggregate, will show some growth as it recovers from the inventory correction. But that I would not present as a sustainable, long-term growth.

而且順帶一提，我們其實也能出貨。我們有能力支撐那樣的需求。現實是，這終究會趨於平坦，因為你能拿的市占有上限。PON 整體會在庫存修正結束後出現一些成長，但我不會把那描述為可持續的長期成長。

There are some that say that with 10G PON that there will be growth but that's not what our working model is. The growth on a go-forward basis in our laser business is all about things like mobile infrastructure, both backhaul and fronthaul and then, most notably, data center.

有些人認為隨著 10G PON 會有成長，但那不是我們的運作模型。往後我們雷射業務的成長，重點在於像是行動基礎建設（包含回傳 backhaul 與前傳 fronthaul），以及最值得注意的資料中心。

So in aggregate we have a lot of room -- data center shipments are at the very, very early stages. The backhaul mobile infrastructures stuff I would guess it's 20% of our total. And it was depressed, so that's going to show recovery and growth. So there's a lot of -- from our perspective, especially with the data center opportunity, there's a lot of juice for growth beyond PON. Again, PON we'll just treat as a very, very nice cash cow.

所以整體而言我們還有很大空間——資料中心出貨仍在非常、非常早期的階段。行動基礎建設的回傳相關，我猜大概佔我們總量的 20%。而且那部分之前是被壓抑的，所以會呈現復甦與成長。因此從我們的角度來看——特別是有資料中心機會——除了 PON 之外，還有很多成長動能。再說一次，PON 我們就把它視為非常、非常好的現金牛。

Understood. And just a follow up on the laser business, you kind of touched on those 25 gig laser opportunities in data center. I think last quarter you said you were progressing through the quals. Just wondering if you had any update for us in terms of production, design wins on the laser side, given the significant unit opportunity on the data center side?

了解。再追問一下雷射業務，你剛剛提到資料中心的 25G 雷射機會。我記得上季你說你們正在推進認證（quals）。想請問你們在量產、設計導入（design wins）方面是否有任何更新？畢竟資料中心端的單位機會相當可觀。

You know, our initial design wins and our initial business and data centers is actually on the opto-electronics, not the lasers. Where we're layering the 25 gig laser design wins after our position with things like laser drivers supporting other people's lasers as well as some of the modulated drivers and CDRs, and so on. So we're a player at all the major accounts. We're bringing in the lasers now at the major accounts. But it's too early to broadcast where we succeeded and so on. In fact it would be inappropriate for our customers. I think we learned that lesson commenting on AOI a few quarters ago.

你知道，我們在資料中心最初的設計導入與最初的業務其實是在光電（opto-electronics），不是在雷射。我們是在既有的基礎上疊加 25G 雷射的設計導入：例如我們先以雷射驅動器支援別人的雷射，還有一些調變驅動器與 CDR 等等。因此我們在所有主要客戶那裡都是供應商。我們現在也把雷射導入到主要客戶了。但現在還太早，不適合對外宣佈我們在哪些地方成功等等。事實上，對客戶而言那是不恰當的。我想我們在幾季前評論 AOI 時已經學到這個教訓。

Got it. And then just on the OpEx, Bob, you mentioned some variable compensation expenses that could come into that September quarter in the end of the fiscal year, could you give us sort of any sense on what you think non-GAAP OpEx does sequentially in the September quarter?

了解。接著關於營業費用（OpEx），Bob，你提到在 9 月季度、也就是會計年度末，可能會有一些變動薪酬費用進來。你能否大概給我們一些概念：你認為 9 月季度非 GAAP 的 OpEx 會季對季怎麼變化？

Yes, I think easiest way to do it is to take the midpoint of everything. That's above -- somewhere between $46 million and $47 million.

是的，我想最簡單的方式是取各項指引的中點。那會在——大約介於 4,600 萬到 4,700 萬美元之間。

Great, thank you.

很好，謝謝你。

Richard Shannon, Craig-Hallum.

Richard Shannon，Craig-Hallum。

Hi, John and Bob. Thank you for taking my questions. I probably just have a couple left here. John, I think you mentioned in your prepared remarks, and it went by me a little fast, but in terms of your guidance for the September quarter, can you give us the puts and takes over the -- I guess your thoughts on what optical will grow and then some of the puts and takes inside? I think understand on the PON side but maybe again in mobile infrastructure and Metro, longhaul, et cetera, it would be good to repeat. If you could, please.

嗨，John 和 Bob。感謝讓我提問。我這邊大概只剩兩個問題。John，我想你在事先準備的發言中提到過，但我剛剛有點沒跟上；就你們對 9 月季度的指引而言，能否請你談談其中的利多與利空——也就是你對光通訊（optical）成長的看法，以及內部各項因素的拉抬與抵銷？我想我理解 PON 這一塊，但若能再重申一下行動基礎設施與都會網（Metro）、長途（longhaul）等方面的利多利空，會很有幫助。若可以的話，麻煩你。

Yes, so the growth, we obviously guided strong sequential growth again and strong EPS growth. But the hero this time, believe it or not, is A&D. We've got MMIC programs and airborne radar but that's less than half. There's lots of other things that are MMICs turning on in A&D, as well as our catalog business. MMIC's in Networks as well as A&D.

好的，所以成長方面，我們顯然指引了再次強勁的季增成長以及強勁的 EPS 成長。但這次的主角，信不信由你，是航太與國防（A&D）。我們有 MMIC 專案與機載雷達，但那不到一半。A&D 還有許多其他 MMIC 正在啟動，以及我們的型錄（catalog）業務。網路（Networks）以及 A&D 都有 MMIC。

There is some modest growth in Networks, and that coming from Optical, but the real growth there is in Metro. As we indicated, we left not insignificant revenue on the table with the Metro business due to supply constraints. We, like a lot of people right now, are struggling to keep up with that potentially exploding demand so Metro will continue to grow.

網路業務會有一些溫和成長，主要來自光通訊（Optical），但真正的成長是在都會網（Metro）。如同我們所指出的，由於供應限制，Metro 業務有相當可觀的營收沒能做出來。我們跟現在很多公司一樣，正努力跟上可能爆發式成長的需求，因此 Metro 會持續成長。

We're assuming in PON, like you said, we are very modest in our expectations, sequentially in terms of what we will do, certainly for the next quarter. At some point that market, we are told by our customers, will recover but we're not calling that for the September quarter. So it's really -- it's an A&D show for the next quarter probably with Metro longhaul.

至於 PON，如你所說，我們對於接下來一季的表現，在季增上是非常保守的。客戶告訴我們那個市場在某個時間點會復甦，但我們不會把這件事放進 9 月季度的預期。所以接下來一季大概會是航太與國防（A&D）的主場，外加 Metro 長途（longhaul）。

Okay, great. And just a follow-up on that, John, can you give us any more clarity or details on the materials that were as issue for your supply constraints And also a quick follow on also on your comments, just kind of reiterate what you think your share is with the opto-electronics within the 100 gig Metro space

好的，很棒。再追問一下，John，你能否更清楚或更具體說明造成供應限制的材料問題？另外也快速追問一下你剛才的評論：請你再重申一下，你們在 100G Metro 領域的光電（opto-electronics）市占大概是多少？

Yes, I think it would be inappropriate to mention the supplier and embarrass them publicly (laughter) -- what the key material shortage was, it's not appropriate and, frankly, I don't want to telegraph to our competition what challenges we have had operationally. But suffice to say, that is now recovered. We've got the material flowing in to be able to realize all available demand for the next quarter. What was the other --the second part of the question?

是的，我想點名供應商、讓他們在公開場合難堪是不合適的（笑聲）——至於關鍵材料短缺是什麼，也不適合說；坦白講，我也不想向競爭對手透露我們在營運上遇到的挑戰。不過可以說的是，這個問題現在已經恢復了。我們已經有材料持續到貨，能在下一季滿足所有可得的需求。另一個——第二部分問題是什麼？

Just the share in 100 gig Metro? For your opto-electronics.

就是 100G Metro 的市占？你們的光電產品。

Yes, we estimated our design win share and if things don't change it's approaching 80%. Minimally, 70%. For modulated drivers, that's where we really play very well. That's about -- our content that we supply in there is about 80% of the available TAM. And we've done very well with those modulator drivers.

是的，我們估算過我們的 design win 市占；如果情況不變，正接近 80%。至少也有 70%。以調變器驅動器（modulated drivers）來說，那是我們表現非常強的領域。我們在那裡提供的內容大約占可得 TAM 的 80%。而且我們在那些調變器驅動器上做得非常好。

And we're, frankly, the de facto standard. So as Metro does, we think we will go, our design win footprint transcends several transceiver guys, several network deployments, several system guys. So it's not like we're exposed to any one customer or any one deployment. It's as Metro goes, our growth should mirror that.

而且坦白說，我們幾乎是事實上的標準。因此 Metro 怎麼走，我們就怎麼走；我們的 design win 版圖橫跨多家收發器（transceiver）廠商、多個網路部署、以及多家系統廠商。所以我們並不是曝險在單一客戶或單一部署上。Metro 成長如何，我們的成長應該會與之同步。

Okay, perfect. That's great. All the detail I was looking for. Thank you for the questions, guys, and congratulations

好的，完美。很棒。這就是我想要的所有細節。謝謝你們回答問題，也恭喜你們。

Yes, thanks. You're welcome.

好的，謝謝。不客氣。

Harsh Kumar, Stephens.

Harsh Kumar，Stephens。

Thanks. Follow-up question for you, John. This Norman, Oklahoma deal, should I be thinking of that as another step in the program and you're going to get these spotty deals? Or is this the start of something that we can start to model perhaps? Maybe any kind of clarity that you have would be appreciated.

謝謝。John，我有個追問。這個奧克拉荷馬州 Norman 的案子，我應該把它視為計畫中的另一個步驟，之後你們還會拿到這種零星的案子嗎？還是說，這是某種我們可以開始建模的起點？如果你能提供任何更清楚的說明，我會很感謝。

No, completing the shipments for the MPAR system in Norman, Oklahoma was exactly what Jack Kennedy said in our Analyst Day. That in the September quarter, we would be completing the first full-scale prototype.

不是，完成奧克拉荷馬州 Norman 的 MPAR 系統出貨，正如 Jack Kennedy 在我們的分析師日所說：在 9 月季度，我們將完成第一個全尺寸原型（full-scale prototype）。

Once installed in Norman, Oklahoma, there, over the months, that is the necessary milestone RFI to be issued and FAA know and everything is on track. We heard that was kind of pulling in. The real encouraging -- the $10,000 question, frankly, is who's going to pay for this stuff, right? And so the fact -- the indication now is FCC directing the sale of L-band spectrum, to the tune of, Bob, your number was $86 billion?

一旦在奧克拉荷馬州 Norman 安裝完成，接下來幾個月，那就是發出必要里程碑 RFI 的前提，FAA 也會知悉，而一切都在軌道上。我們聽說時程似乎有提前。真正令人鼓舞的——坦白說那個價值 1 萬美元的問題是：誰要為這些東西買單，對吧？因此，現在的跡象是 FCC 正在主導出售 L-band 頻譜；Bob，你的數字是 860 億美元？

All those proceed are shared with the television broadcaster that are giving up the spectrum but -- to some extent -- but it's enough to build a few tiles. (laughter)

所有那些收益會與放棄頻譜的電視廣播業者分享——在某種程度上——但也足夠蓋幾個「tile」了。（笑聲）

We'll take our few percent of that puppy. But it's -- look, obviously when the funding source starts becoming visible, it becomes more real now. Again, I'll caution -- use the same caution we used in the Analyst Day and what we keep doing, until we get past the RFI and until that timeline gets solidified, it's a latent opportunity. And it's really an issue of, from our perspective, it's issue of timing, not if.

我們會拿那一大筆裡面的幾個百分點。但——你看，顯然當資金來源開始變得可見時，這件事就更真實了。再次提醒——我們會用在分析師日相同的謹慎態度，也會持續如此：在我們跨過 RFI、以及時程被明確固化之前，這仍是一個潛在機會。從我們的角度來看，問題在於時間點，而不是會不會發生。

Fair enough, thanks, guys.

了解，謝謝各位。

Yes

是的。

And at this time I'd like to turn the call over to John Croteau for any closing remarks. Sir?

此時我想把電話交給 John Croteau，請他做任何結語。先生？

Very good. So before closing out today's call please note that we will be attending a number of upcoming investor events including the Jefferies Corporate Access Day in Chicago on August 30th, the Credit Suisse Small Mid Cap Conference in New York on September 15th, as well as road shows to Dallas, Houston, Atlanta and Hong Kong.

很好。在結束今天的電話會議之前，請注意我們將參加多場即將到來的投資人活動，包括 8 月 30 日在芝加哥舉行的 Jefferies Corporate Access Day、9 月 15 日在紐約舉行的 Credit Suisse Small Mid Cap Conference，以及前往達拉斯、休士頓、亞特蘭大與香港的路演。

If you would like to request a meeting while we are in your area, please email us at ir@macom.com. We look forward to reporting our fiscal year-end results and continued progress on next quarter's call. That concludes today's remarks. Operator, you may now disconnect the call.

如果您希望在我們到訪您所在地區時安排會議，請寄電子郵件至 ir@macom.com 與我們聯繫。我們期待在下一季的電話會議中報告我們的會計年度年終結果，以及持續的進展。以上為今天的發言。接線員，您現在可以中斷通話。

Thank you, sir. Ladies and gentlemen, that does conclude your program. You may disconnect your lines at this time. Have a wonderful day.

謝謝您，先生。各位女士、先生，以上即為本次會議內容。您現在可以掛斷電話線。祝您有美好的一天。