MACOM Technology Solutions Holdings, Inc. (MTSI) 2016 Q4 法說會逐字稿

Good afternoon, and welcome to MACOM Technology Solutions fiscal fourth-quarter and 2016 financial results conference call.

各位下午好，歡迎參加 MACOM Technology Solutions 會計年度第四季及 2016 年財務業績電話會議。

(Operator Instructions)

（接線員指示）

As a reminder, this conference call is being recorded today, Tuesday, November 15, 2016. I will now turn the call over to Leanne Sievers of Shelton Group, the investor relations agency for MACOM. Leanne, please go ahead.

提醒各位，本次電話會議正在錄音，時間為 2016 年 11 月 15 日（星期二）。現在我將把電話交給 Shelton Group（MACOM 投資人關係代理機構）的 Leanne Sievers。Leanne，請開始。

Good afternoon, and welcome to MACOM Technology Solutions fiscal fourth quarter and 2016 earnings conference call. I am Leanne Sievers, Executive Vice President of Shelton Group, MACOM's investor relations firm.

各位下午好，歡迎參加 MACOM Technology Solutions 會計年度第四季及 2016 年財報電話會議。我是 Shelton Group 執行副總裁 Leanne Sievers，Shelton Group 為 MACOM 的投資人關係公司。

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've not yet received a copy of the earnings press release, you can obtain a copy on MACOM's website at www.MACOM.com under the Investor Relations section.

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。若您尚未取得本次財報新聞稿，可至 MACOM 網站 www.MACOM.com 的「Investor Relations（投資人關係）」專區下載。

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及對各位提問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 in 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 to be filed on November 24, 2015 and quarterly report on Form 10-Q filed on July 27, 2016. Any forward-looking statements represent management's views as of today, November 15, 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》（Private Securities Litigation Reform Act of 1995）中關於前瞻性陳述的「安全港」保護，並請各位參閱 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 Form 8-K 當期報告、將於 2015 年 11 月 24 日提交的 Form 10-K 年度報告，以及於 2016 年 7 月 27 日提交的 Form 10-Q 季度報告。任何前瞻性陳述均代表管理層截至今日（2016 年 11 月 15 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 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 Company's press release, and related current report on Form 8-K, which was filed with the SEC today, and can be found at the Investor Relations section of MACOM's website.

公司新聞稿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，包括今日電話會議中提及的所有損益表金額與百分比（除非另有說明）。這些財務衡量指標以及 GAAP 與經調整非 GAAP 結果之調節表，已載於公司新聞稿及今日向 SEC 提交之 Form 8-K 當期報告中，並可於 MACOM 網站「Investor Relations（投資人關係）」專區查閱。

For those of you unable to listen to the entire call at this time, a recording will be available via webcast for at least 30 days in the Investor Relations section of the MACOM's website. And now, I'll turn the call over to MACOM's President and CEO, John Croteau. John, please go ahead.

若各位目前無法收聽完整電話會議，網路直播的錄音將至少提供 30 天，位於 MACOM 網站的「Investor Relations（投資人關係）」專區。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. I'll begin today's call with an overview of our fourth quarter and fiscal year results for 2016, 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 and year, followed by guidance for the fiscal first quarter of 2017. Straight to the results.

謝謝你，Leanne。歡迎各位，感謝今天加入我們。我將先概述 2016 年第四季及會計年度的業績，接著把電話交給我們的財務長 Bob McMullen，由他更詳細說明財務表現。之後我將以本季與本年度的執行情況摘要作為結語，並提供 2017 會計年度第一季的展望指引。直接看結果。

I'm pleased to report that for our fiscal fourth quarter of 2016, revenue exceeded the top end of our guidance at $152.7 million, with adjusted gross margin coming in above the midpoint at 58.5%, with adjusted earnings coming in at $0.54 per diluted share. Looking at our end markets, networks was up 5% sequentially on the back of strong growth in metro long-haul, that more than made up for expected weakness in access and backhaul. Aerospace and defense grew 18%, and multi-market was up 10% sequentially. In total, revenue grew 7% sequentially, and 36% over our fiscal fourth quarter of last year 2015.

我很高興報告，2016 會計年度第四季營收達 1.527 億美元，超出我們指引區間上緣；經調整毛利率為 58.5%，高於指引中點；經調整每股盈餘為稀釋後每股 0.54 美元。就終端市場而言，網路業務在都會長途（metro long-haul）強勁成長帶動下，季增 5%，足以彌補我們預期接取與回程（access and backhaul）的疲弱；航太與國防成長 18%；多元市場（multi-market）季增 10%。整體而言，營收季增 7%，較 2015 會計年度第四季年增 36%。

This caps our third year of outperformance, in which we delivered 32% compound annual revenue growth, which more than doubled revenue over that three-year period. Adjusted gross margin improved 970 basis points over those same years, and more importantly, we expanded adjusted earnings per share by 47% compounded annually over that time period.

這也為我們連續第三年優於預期的表現畫下句點：在這三年期間，我們達成 32% 的年複合營收成長，使營收在三年內增加逾一倍。經調整毛利率在同期間提升 970 個基點；更重要的是，經調整每股盈餘在該期間以年複合 47% 的速度擴張。

This is testament to our balanced and diversified portfolio of investments across three secular growth drivers, and within those secular growth drivers, which consistently delivered results in all market conditions, and allowed us to outgrow our industry by integer multiples. Now let me turn it over to Bob for to review our fiscal fourth quarter financials in further detail.

這證明我們在三項長期結構性成長驅動因素上，採取均衡且多元化的投資組合；並且在這些長期成長驅動因素之內，我們能在各種市場環境下持續交出成果，讓我們以數倍於產業的速度成長。現在我把電話交給 Bob，請他更詳細回顧我們 2016 會計年度第四季的財務表現。

Thank you, John, and good afternoon, everyone. MACOM has again delivered a premier fiscal year 2016 financial results, growing revenues 29.5% to $544.4 million, expanding adjusted gross margin 62 basis points to 58.1%, leveraging operating expenses to deliver adjusted EPS growth of 49.3%, or $1.91, generating GAAP cash flow from operations of $79.2 million, up 135% and representing 75% of non-GAAP net income, improving free cash flow to $47.1 million, and 45% of non-GAAP net income while continuing to invest in the growth of our business. From my perspective, an excellent year from a financial point of view.

謝謝你，John，各位下午好。MACOM 再次交出 2016 會計年度一流的財務成果：營收成長 29.5% 至 5.444 億美元；經調整毛利率提升 62 個基點至 58.1%；透過槓桿化營業費用帶動經調整每股盈餘成長 49.3% 至 1.91 美元；GAAP 營運活動現金流達 7,920 萬美元，年增 135%，相當於非 GAAP 淨利的 75%；自由現金流改善至 4,710 萬美元，為非 GAAP 淨利的 45%，同時持續投資於業務成長。就我看來，從財務角度而言，這是一個非常出色的年度。

Now to the fiscal fourth quarter. Revenue was $152.7 million during the fiscal fourth quarter, growing 35.6% over 2015 fiscal fourth quarter, and increasing sequentially 7.3% over $142.3 million in the prior quarter. Revenue by end markets in the fiscal fourth quarter, networks $109.7 million and 71.9% of total revenues, up 5% sequentially.

接著看 2016 會計年度第四季。第四季營收為 1.527 億美元，較 2015 會計年度第四季成長 35.6%，並較上一季的 1.423 億美元季增 7.3%。第四季按終端市場劃分之營收：網路業務 1.097 億美元，占總營收 71.9%，季增 5%。

Multi-market $21.6 million and 14.1% of total revenues, up 10.3% sequentially. And aerospace and defense $21.4 million, and 14% of total revenues, up 18% sequentially. As we noted in our last earnings call, MACOM's A&D business is expected to grow in fiscal year 2017 at double MACOM's target annual revenue growth rate of 20%.

多元市場 2,160 萬美元，占總營收 14.1%，季增 10.3%。航太與國防 2,140 萬美元，占總營收 14%，季增 18%。如同我們在上次財報電話會議所提，MACOM 的航太與國防（A&D）業務預期在 2017 會計年度的成長率，將達到 MACOM 目標年營收成長率 20% 的兩倍。

Of the total network revenues in the fiscal fourth quarter, total optical revenues were $80.6 million, up 5% sequentially led by long-haul, metro, and datacenter revenue growth, up 49% in the fiscal fourth quarter over fiscal third quarter. Non-GAAP gross profit and gross margin in the fiscal fourth quarter was $89.3 million and 58.5% of revenue, respectively, expanding from $64.6 million and 57.4% of revenues, respectively over Q4 of the prior fiscal year, and $81.5 million and 57.3%, respectively on a sequential basis.

在第四季網路業務總營收中，光學（optical）營收合計為 8,060 萬美元，季增 5%，主要由長途、都會與資料中心營收成長帶動；資料中心營收在第四季較第三季成長 49%。第四季非 GAAP 毛利與毛利率分別為 8,930 萬美元及營收的 58.5%；相較上一會計年度第四季分別為 6,460 萬美元及 57.4%，以及相較上一季分別為 8,150 萬美元及 57.3%，均有所擴張。

Adjusted gross margin quarter-to-quarter improved as gross margins from our fiscal year 2016 acquisitions increased. Adjusted gross margin excluding our fiscal year 2016 acquisitions continue to exceed 60% MACOM's target gross margin rate at 61%. In terms of operating expenses for the fiscal fourth quarter, total non-GAAP operating expenses were $51 million, compared to $38.4 million in the prior fiscal year, and $46.6 million in the prior fiscal quarter.

經調整毛利率在季對季改善，原因是我們 2016 會計年度收購案的毛利率提升。若排除 2016 會計年度收購案，經調整毛利率仍持續高於 MACOM 目標毛利率 60%，達 61%。就第四季營業費用而言，非 GAAP 營業費用合計為 5,100 萬美元，相較上一會計年度為 3,840 萬美元，上一季為 4,660 萬美元。

Adjusted operating expenses were 32.8% over Q4 of the prior fiscal year, and 9% sequentially, primarily due to higher variable expenses. Adjusted R&D and SG&A expenses were $27.4 million and $23.6 million, respectively in the fiscal fourth quarter.

經調整營業費用較上一會計年度第四季增加 32.8%，較上一季增加 9%，主要因變動性費用較高。第四季經調整研發（R&D）與銷售、一般及行政（SG&A）費用分別為 2,740 萬美元與 2,360 萬美元。

Non-GAAP income from operations and operating margins were $38.3 million and 25.1% of revenue, up 46.5% and 7.7%, respectively. Over Q4 of the prior fiscal year, $26.2 million and 23.3% of revenues respectively, and sequentially up 9.7% and 2.2% from $34.9 million and 24.5% of revenues, respectively. Adjusted operating margins expanded 190 basis points Q4 over the prior year, and 60 points over the prior fiscal quarter.

第四季非 GAAP 營業利益與營業利益率分別為 3,830 萬美元及營收的 25.1%，分別成長 46.5% 與 7.7%。相較上一會計年度第四季分別為 2,620 萬美元及營收的 23.3%；相較上一季分別為 3,490 萬美元及營收的 24.5%，分別季增 9.7% 與 2.2%。經調整營業利益率較去年同期第四季擴張 190 個基點，較上一季擴張 60 個基點。

Interest expense increased to $5 million due to the increase of our term B debt by $250 million, starting in the last month of the fiscal fourth quarter. Other income of $1.9 million represents revenue from a consulting contract from our auto business divestment that continues through fiscal year 2017, where we provide technical assistance to the buyer as requested from time to time. Our normalized non-GAAP income tax rate for the fiscal fourth quarter was 15%.

由於我們的 B 期定期貸款（term B）債務增加 2.5 億美元，且自財政年度第四季最後一個月開始計息，利息費用增加至 500 萬美元。其他收入 190 萬美元代表我們汽車業務剝離所產生之顧問合約收入；該合約將持續至 2017 財政年度，我們會依買方不時提出之要求提供技術協助。我們財政年度第四季的常態化（normalized）非 GAAP 所得稅率為 15%。

This tax rate was consistent with the prior fiscal quarter, and the fiscal fourth quarter of 2015. We did not pay cash taxes in the fiscal fourth quarter. We did receive a $1.5 million refund during the fiscal fourth quarter.

此稅率與前一財政季度以及 2015 年財政年度第四季一致。我們在財政年度第四季未支付現金所得稅。我們確實在財政年度第四季收到 150 萬美元的退稅。

Our fiscal fourth quarter non-GAAP net income and EPS were $30 million and $0.54 per fully diluted share, respectively, growing from $18.8 million and $0.34 in Q4 of the prior fiscal year, and $27.9 million and $0.51 per fully diluted share in the prior fiscal quarter on a sequential basis. Non-GAAP net income grew 59.5% over fiscal year 2015, and 7.7% over the prior fiscal quarter.

我們財政年度第四季非 GAAP 淨利與每股盈餘（EPS）分別為 3,000 萬美元與每股完全稀釋後 0.54 美元，較前一財政年度第四季的 1,880 萬美元與 0.34 美元成長，並且相較於前一財政季度的 2,790 萬美元與每股完全稀釋後 0.51 美元亦呈現季增。非 GAAP 淨利較 2015 財政年度成長 59.5%，較前一財政季度成長 7.7%。

Fiscal fourth quarter adjusted EPS includes the effect of one month's additional interest expense from our term B offering, which we did not anticipate in the adjusted EPS guidance announced in our last earnings call. Absent this additional interest expense, our adjusted EPS for the fiscal fourth quarter would have been $0.56 per diluted share, the midpoint of our guidance.

財政年度第四季調整後 EPS 包含了我們 term B 發行所帶來的額外一個月利息費用影響；此項影響並未納入我們在上次財報電話會議中公布的調整後 EPS 指引。若不計此額外利息費用，我們財政年度第四季的調整後 EPS 將為每股稀釋後 0.56 美元，亦即我們指引的中位數。

The share count used to compute non-GAAP EPS was 55.3 million fully diluted shares for the fiscal fourth quarter. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization was $44.9 million, up 50.2% from $29.9 million in our fiscal year 2015 fourth quarter, and up 6.67% from $42.1 million sequentially.

用於計算非 GAAP EPS 的股數為財政年度第四季完全稀釋後 5,530 萬股。調整後 EBITDA（即息稅折舊攤銷前盈餘）為 4,490 萬美元，較 2015 財政年度第四季的 2,990 萬美元成長 50.2%，並較前一財政季度的 4,210 萬美元季增 6.67%。

GAAP cash flow from operations was $24.9 million in the fiscal fourth quarter, as compared to $5.5 million in the fiscal year 2015 fourth quarter, increasing 352%, and up from $19.2 million sequentially. Fiscal fourth quarter cash flow from operations represents 83% of non-GAAP net income, up from 29.3% in the fourth quarter of fiscal year 2015, and 69% sequentially. After deducting capital expenditures, free cash flow was $17.6 million, or 59% of non-GAAP net income in the fiscal fourth quarter, approaching our target free cash flow percentage as non-GAAP net income of 60%.

財政年度第四季 GAAP 營運活動現金流量為 2,490 萬美元，相較於 2015 財政年度第四季的 550 萬美元增加 352%，並且較前一財政季度的 1,920 萬美元上升。財政年度第四季營運活動現金流量相當於非 GAAP 淨利的 83%，高於 2015 財政年度第四季的 29.3%，亦高於前一財政季度的 69%。扣除資本支出後，自由現金流量為 1,760 萬美元，約為財政年度第四季非 GAAP 淨利的 59%，接近我們將自由現金流量占非 GAAP 淨利比率設定為 60% 的目標。

Turning to the balance sheet, at fiscal quarter end, our cash, cash equivalents and short-term investments were approximately $356.8 million, up $266.2 million over the fiscal third quarter, including $243 million net proceeds from our term B financing closed on August 31. Accounts receivable were up over prior fiscal quarter to $108.3 million, up from $92 million sequentially. Day sales outstanding were 65 days, compared to 59 days at the end of the prior fiscal quarter.

接著看資產負債表，截至財政季度末，我們的現金、約當現金及短期投資約為 3.568 億美元，較財政年度第三季增加 2.662 億美元，其中包含我們於 8 月 31 日完成之 term B 融資的 2.43 億美元淨收益。應收帳款較前一財政季度增加至 1.083 億美元，較前一季度的 9,200 萬美元上升。應收帳款週轉天數（DSO）為 65 天，較前一財政季度末的 59 天增加。

Inventory was down $114.9 million, compared to $117.1 million in the prior quarter. Inventory turns were 2.2 times, compared to 2.1 times in the prior fiscal quarter. Long-term debt was $576.3 million, inclusive of acquired capital leases, and the previously noted term B financing proceeds.

存貨降至 1.149 億美元，前一季度為 1.171 億美元。存貨週轉率為 2.2 次，前一財政季度為 2.1 次。長期負債為 5.763 億美元，包含併購取得之資本租賃，以及前述 term B 融資所得款項。

We have $130 million of availability in an undrawn credit line. Capital expenditures in the fiscal fourth quarter were $7.2 million or 4.7% of revenue, compared to $7.1 million, or 5% of revenue sequentially. Related depreciation expense for the fiscal fourth quarter was approximately $4.7 million, as compared to $5.3 million in the prior quarter.

我們在一條未動用的信用額度中仍有 1.3 億美元可用額度。財政年度第四季資本支出為 720 萬美元，約占營收 4.7%，相較之下前一季度為 710 萬美元，約占營收 5%。財政年度第四季相關折舊費用約為 470 萬美元，前一季度為 530 萬美元。

Our investments and capital expenditure exceed our current levels of depreciation expense, reducing our operating cash flow. We generated positive free cash flow of $47.1 million in fiscal year 2016, including capital expenditures of $32.1 million.

我們的投資與資本支出高於目前的折舊費用水準，因而降低了營運現金流量。我們在 2016 財政年度產生正向自由現金流量 4,710 萬美元，其中包含資本支出 3,210 萬美元。

Before I turn the call back to John, as is customary based on our review of geographical distribution of FY17 anticipated taxable income, we have determined our non-GAAP income tax rate for fiscal year 2017 will be 12%, commencing in the first fiscal quarter of 2017. Back to you, John.

在我把電話交回給 John 之前，依照慣例，基於我們對 FY17 預期應稅所得之地理分布的檢視，我們已決定 2017 財政年度的非 GAAP 所得稅率將為 12%，並自 2017 財政年度第一季開始適用。交給你了，John。

Thanks, Bob. Let's dive right into our optical performance during the quarter. In aggregate, revenue from our optical businesses grew 5% sequentially, and now constitutes 53% of our total revenue. Revenue from our metro long-haul business grew 49% sequentially. Put in context, revenue from our optical businesses grew 96% over the past year, across the entire portfolio from Metro Long-haul, Access Backhaul and Datacenters.

謝謝，Bob。讓我們直接深入本季度的光學業務表現。整體而言，我們光學業務營收較前一季成長 5%，目前占總營收的 53%。我們的都會長途（metro long-haul）業務營收較前一季成長 49%。放在脈絡中來看，過去一年我們光學業務營收在整個產品組合（都會長途、接入回傳（Access Backhaul）與資料中心）合計成長 96%。

As expected, PON was essentially flat quarter on quarter. Looking ahead, visibility remains poor, as we expect a seasonally soft Q1, including the usual year end inventory management effects over in China. In addition, fiber backhaul declined consistent with industry-wide reports of weakness in wireless infrastructure.

如預期，PON 基本上與前一季持平。展望未來，可見度仍然偏低，因為我們預期第一季將呈現季節性疲弱，包括中國常見的年末存貨管理效應。此外，光纖回傳（fiber backhaul）下滑，與全產業對無線基礎建設疲弱的報告一致。

Despite the recent softness in demand, we expect both of these markets to cycle back, as the inventory correction completes after the Chinese New Year. Tenders have already been awarded, which we believe will revive demand in 2017.

儘管近期需求轉弱，我們預期這兩個市場都將隨著中國農曆新年後存貨修正完成而回到成長循環。標案已經完成授標，我們相信這將在 2017 年帶動需求回升。

More than offsetting this weakness, our metro long-haul business saw a blow-out quarter, with 49% sequential growth, with high visibility into continuing strong demand through the first half of next year. By our estimates, our leadership position includes over a 60% market share across Linear, as well as Limiting drivers, CFP2 as well as QSFP-28, CFP-DCO as well as -ACO, and across all protocols including NRZ, LR4, PSM-4, PAM-4 and CWDM. We believe this strength across products, regions and protocols, combined with our new-found breakout in datacenters will more than compensate for any short-term weakness we see in PON our backhaul.

不僅足以抵消上述疲弱，我們的都會長途業務本季表現亮眼，較前一季成長 49%，且對於明年上半年持續強勁需求具有高度可見度。依我們估計，我們的領先地位包含在線性（Linear）以及 Limiting 驅動器、CFP2 以及 QSFP-28、CFP-DCO 以及 -ACO 等領域超過 60% 的市占率，並涵蓋所有協定，包括 NRZ、LR4、PSM-4、PAM-4 與 CWDM。我們相信，這種跨產品、區域與協定的優勢，加上我們在資料中心的新突破，將足以補償我們在 PON 與回傳業務所見的任何短期疲弱。

We've also concluded that our datacenter business is now large enough, and important enough as a growth vector, that it merits that we speak to it separately going forward. So switching over to datacenters, we're proud to report that in fiscal year 2016, we enabled over 1 million 100G modules going into datacenter and enterprise applications.

我們也得出結論：我們的資料中心業務如今規模已足夠大，且作為成長動能的重要性也足夠高，因此值得我們未來將其獨立說明。因此切換到資料中心，我們很自豪地報告，在 2016 財政年度，我們支援了超過 100 萬個 100G 模組導入資料中心與企業應用。

This number is beyond even the largest TAM reported by any of the market analysts to date, and includes leadership positions in laser and VCSEL drivers, CDRs and TIAs. What's even more exciting, is that we believe this is just the beginning of a ramp that will see demand for 100G connectivity within datacenters triple over the next four years.

這個數字甚至超過迄今任何市場分析師所報告的最大 TAM，並且包含我們在雷射與 VCSEL 驅動器、CDR 與 TIA 的領先地位。更令人振奮的是，我們相信這只是需求爬坡的開始，未來四年資料中心內部對 100G 連線的需求將成長至三倍。

By our estimates, based on detailed bottoms-up analysis by customer, we've achieved over 60% share of the high-performance analog content going into these applications. Moving into the second half of 2017, we expect to more than double port shipments into these applications. We expect that with 100G optical market will continue to exceed current analysts forecasts over the next two to three years, primarily driven by cloud datacenter demands for high bandwidth connectivity.

依我們估計，基於按客戶進行的詳細自下而上分析，我們在導入這些應用的高效能類比內容（high-performance analog content）已取得超過 60% 的市占率。進入 2017 年下半年，我們預期對這些應用的埠（port）出貨量將超過倍增。我們預期未來兩到三年 100G 光學市場將持續超越目前分析師預測，主要由雲端資料中心對高頻寬連線的需求所驅動。

Building on top of this strong foundation of high-performance analog content, today we announced volume production of our family of 25 gig lasers for 100G connectivity across all datacenter protocols including CWDM, LR4 and LAN/DWDM. These lasers leverage our heavily patented Etched Facet technology, and combined with our wafer scale manufacturing provide a combination of cost and capacity that's unmatched by incumbent laser suppliers.

在此高效能類比內容的強大基礎之上，我們今日宣布我們的 25G 雷射系列已進入量產，可支援所有資料中心協定的 100G 連線，包括 CWDM、LR4 與 LAN/DWDM。這些雷射採用我們擁有大量專利的 Etched Facet 技術，並結合我們的晶圓級製造，提供在成本與產能上的組合優勢，為既有雷射供應商所無可匹敵。

Lasers are only the first step into photonics, as we intend to build our leadership on the analog side, and ride the anticipated tsunami of demand for bandwidth within cloud datacenters. Next spring, we expect to ship the industry's first integrated CWDM laser and photonic integrated circuit or L-PIC, further expanding our related SAM by a factor of 4.

雷射只是進入光子學（photonics）的第一步；我們打算在類比端建立領導地位，並乘上雲端資料中心內部頻寬需求預期海嘯式成長的浪潮。明年春季，我們預期將出貨業界首款整合式 CWDM 雷射與光子積體電路（photonic integrated circuit，或 L-PIC），進一步將我們相關的 SAM 擴大 4 倍。

With that forthcoming commercial release of the L-PIC, MACOM's leadership position will span all semiconductor content, from the switch to fiber. Most importantly, these breakthroughs from MACOM have been recognized by the major cloud service providers. We're now viewed as a strategic asset that's poised to provide the critical optical products and technologies that help achieve very aggressive cost targets, and enable mass deployment of 100G transceivers in datacenters.

隨著 L-PIC 即將進入商業化量產出貨，MACOM 的領導地位將涵蓋從交換器到光纖的所有半導體內容。更重要的是，MACOM 的這些突破已獲主要雲端服務供應商認可。我們如今被視為一項策略性資產，具備提供關鍵光學產品與技術的能力，可協助達成極具挑戰性的成本目標，並推動資料中心 100G 收發器的大規模部署。

Now with growing visibility into that opportunity in datacenters, we believe that the inflection point for this ramp is, if anything, pulling in from what we laid out at our 2016 Analyst Day. To close out my comments on the optical businesses, it's important to note that our optical models stand in stark contrast to those who service the captive needs of one standard, one part of the network, or one transceiver supplier. Our success is much closer tied to secular growth, the insatiable demand for bandwidth in today's cloud-connected apps economy. That's why we believe our optical success is sustainable over the short-, medium-, and long-term.

隨著我們對資料中心這項機會的能見度提升，我們認為這波放量的拐點，若有的話，正較我們在 2016 年分析師日所提出的時程提前。就光學業務作結時，必須指出，我們的光學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的封閉需求者形成鮮明對比。我們的成功更緊密地連結於長期結構性成長，以及當今雲端連結應用經濟中對頻寬永無止境的需求。因此，我們相信我們的光學成功在短期、中期與長期皆具可持續性。

Now moving on to Active Antennas, and the first wave of MMIC success. As we predicted last quarter, we saw a breakout in aerospace and defense, as well as our catalog multi-market business on the back of high-performance MMIC portfolio. Now the really great news here is that we now expect our RF and microwave businesses to join optical, as an equally strong growth driver moving forward. The numbers speak for themselves.

接著談主動式天線（Active Antennas）以及第一波 MMIC 的成功。如同我們上季所預期的，我們在航太與國防，以及我們的型錄多市場業務上都出現突破，主要受惠於高效能 MMIC 產品組合。更令人振奮的是，我們現在預期 RF 與微波業務將與光學業務一樣，成為未來同等強勁的成長驅動力。數字會說明一切。

Revenues from our A&D and multi-market businesses grew 18% and 10% respectively, quarter-on-quarter further diversifying our growth vectors. We've successfully positioned MACOM to be the beneficiary of consolidation in our small corner of the semiconductor industry. These high margin monolithic microwave ICs, or MMICs, fall right into our wheelhouse. Our strategy is to regain preeminent share from traditional competitors like the Hittite, TriQuint, RFMD and Microsemi as they undergo consolidation.

我們的航太與國防（A&D）以及多市場業務營收分別季增 18% 與 10%，進一步分散我們的成長動能。我們已成功讓 MACOM 成為半導體產業中我們這個小領域整併的受益者。這些高毛利的單晶微波積體電路（MMIC）正是我們的強項。我們的策略是在競爭對手如 Hittite、TriQuint、RFMD 與 Microsemi 進行整併之際，重新奪回領先市占。

Delivering on our renewed and sustained investment in R&D, we announced 27 new MMICs products last quarter. This portfolio establishes a new benchmark of parametric performance compared to the incumbent offerings, highlighting our leadership position across low noise amplifiers, VCOs, gain blocks, wideband amplifiers, mixers and more.

為了落實我們重新啟動且持續的研發投資，上季我們宣布推出 27 款新的 MMIC 產品。相較於既有供應商的產品，這個產品組合在參數性能上建立了新的標竿，凸顯我們在低雜訊放大器、VCO、增益模組、寬頻放大器、混頻器等多個領域的領導地位。

More importantly, Tier 1 customers across satcom, military communications, industrial, medical, test and measurement have been actively soliciting us to replace prior generation products from other suppliers. Underpinned by existing purchase orders and customer forecasts, we now expect A&D to deliver twice the growth rate of our target operating market model through fiscal year 2017.

更重要的是，來自衛星通訊、軍用通訊、工業、醫療、測試與量測等領域的一線（Tier 1）客戶，正積極邀請我們取代其他供應商的前一代產品。在既有採購訂單與客戶預測的支撐下，我們現在預期 A&D 在 2017 會計年度結束前的成長率將達到我們目標營運市場模型的兩倍。

This initial growth wave comes on the back of MMICs, not yet Tiles, as we outlined on our Analyst Day. Visibility has improved such that inflection point in this first wave MMIC opportunity is if anything, pulling in from what we outlined at our Analyst Day last March.

如同我們在分析師日所說明的，這一波初期成長主要來自 MMIC，而非 Tiles。能見度已提升到使得這第一波 MMIC 機會的拐點，若有的話，正較我們去年三月分析師日所概述的時程提前。

Now let's move over it again. Last quarter, we passed a number of key gates, realizing our ambitions with GaN. First, we successfully completed qualification of our Gen4 process. With this, we now have purchase orders in hand, with two key base station OEMs for initial production in the March quarter.

現在我們再把焦點轉回來。上季我們通過了多個關鍵關卡，實現了我們在 GaN 上的企圖。首先，我們成功完成了 Gen4 製程的認證（qualification）。因此，我們目前已取得兩家關鍵基地台 OEM 的採購訂單，將於三月季度進行初期量產。

Before I dive deeper into that exciting news on the customer front, let me make some quick comments on recent legal developments. Six months ago, we highlighted Infineon's attempt to gain access to our burgeoning market for GaN RF products by improper means. It was regrettable, that they attempted to engage in such strong-arm and bullying tactics, and from the outset, we had full intentions to vigorously protect our rights.

在我更深入說明這項令人振奮的客戶進展之前，先簡要評論近期的法律發展。六個月前，我們提到 Infineon 試圖以不當手段取得我們快速成長的 GaN RF 產品市場。令人遺憾的是，他們試圖採取強硬與霸凌式的策略，而從一開始，我們就完全有意願積極捍衛自身權利。

As many of you know, two weeks ago the court issued a very favorable ruling for us, that granted MACOM a preliminary injunction against Infineon. The court's decision confirmed MACOM's continuing exclusive rights to certain GaN on silicon RF fields under its license agreement with Infineon.

如各位所知，兩週前法院做出了對我們非常有利的裁定，核發了 MACOM 對 Infineon 的初步禁制令（preliminary injunction）。法院的決定確認，依據 MACOM 與 Infineon 的授權協議，MACOM 在特定矽基 GaN RF 領域仍享有持續的排他性權利。

Now let me emphasize here, this sends a message, not only to Infineon, that we take protecting our IP rights and the interest of our shareholders very seriously. Defending our intellectual properties is core to our success, and we plan to vigorously litigate this case to its rightful conclusion.

我在此要強調，這傳遞了一個訊息，不僅是給 Infineon：我們非常重視保護智慧財產權以及股東利益。捍衛我們的智慧財產是成功的核心，我們計畫積極訴訟，直到本案得到應有的最終結果。

Now coming back to our customer engagements. As I said, we have purchase orders in hand from two key base stations OEMs for initial production ramps that are scheduled to begin after the first of the year. That's our second fiscal quarter of 2017.

回到我們的客戶合作。如我所說，我們已取得兩家關鍵基地台 OEM 的採購訂單，用於預計在年初之後開始的初期量產爬坡。那是我們 2017 會計年度的第二季。

These solutions service mainstream frequency bands at 1.8 and 3.5 gigahertz, not the low-volume emerging bands that have been serviced by GaN to date. Achieving performance and functionality that's unachievable by incumbent LDMOS technology, our solutions deliver 6 points of better efficiency over LDMOS based designs in 55% less board space.

這些解決方案服務的是 1.8 與 3.5 GHz 的主流頻段，而非迄今由 GaN 服務的低量新興頻段。我們的解決方案達成了既有 LDMOS 技術無法企及的性能與功能，相較於 LDMOS 設計可提升 6 個百分點的效率，並以少 55% 的板面空間實現。

This enables our customers to increase data throughput capacity by 1.5X to 2X, by adding more channels to the remote radio head without changing its physical size or weight. Better efficiency can also save hundreds of millions of dollars in annual energy costs while operating in the field.

這使我們的客戶能在不改變遠端射頻頭（remote radio head）實體尺寸或重量的情況下，透過增加更多通道將資料吞吐容量提升 1.5 倍至 2 倍。更高的效率也能在現場運行時，每年節省數億美元的能源成本。

As we achieve cost parity with LDMOS in volume production, MACOM's Gen4 GaN power transistors will have a capability to uniquely meet the carriers need to improve data capacity, without adding significant costs to their hardware -- again, within mainstream base stations and the LTE frequency bands. So summing it all up for GaN, we're now poised with performance attributes of GaN, combined with the commercial manufacturing scale and cost structure to disrupt a mainstream part of a $1 billion LDMOS market and bay stations. We're now far enough along in our GaN efforts, with visibility into our end customer deployments that confirm that the ramp, similar to optical and MMIC, is if anything pulling in what we articulated during our Analyst Day.

隨著我們在量產中達到與 LDMOS 的成本持平，MACOM 的 Gen4 GaN 功率電晶體將具備獨特能力，滿足電信業者提升資料容量的需求，而不需在硬體上增加顯著成本——同樣是在主流基地台與 LTE 頻段內。總結 GaN 方面，我們目前已具備 GaN 的性能特性，並結合商業化製造規模與成本結構，有能力顛覆 LDMOS 市場中一個主流、規模達 10 億美元的部分以及基地台領域。我們在 GaN 的推進已達到相當程度，並且對終端客戶部署具備能見度，這些都確認了這波放量（如同光學與 MMIC）若有的話，正較我們在分析師日所闡述的時程提前。

With that, let's talk about next quarter guidance. As we've seen in previous years, the December quarter is expected to be seasonally flat. With the fiscal first quarter ending December 30, 2016, we expect revenue to be in the range of $150 million to $154 million, which is still up more than 30% year on year. Adjusted gross margin is expected to be between 57% and 59%, and adjusted earnings per share between $0.54 and $0.58, utilizing a 12% adjusted income tax rate on an anticipated 56.5 million fully diluted shares outstanding.

接下來談下一季展望。如同過去幾年所見，十二月季度預期將呈現季節性持平。由於會計年度第一季將於 2016 年 12 月 30 日結束，我們預期營收將落在 1.50 億至 1.54 億美元區間，年增仍超過 30%。調整後毛利率預期為 57% 至 59%，調整後每股盈餘（EPS）為 0.54 至 0.58 美元，假設調整後所得稅率為 12%，並以預估 5,650 萬股完全稀釋流通股數計算。

Wrapping things up with the fiscal year, with the close of 2016, we've now posted three years of unprecedented growth and profitability. We've delivered 32% compound annual growth, more than doubling revenue over the past three years. Adjusted gross margin improved 970 basis points over that same period. Most importantly, we have expanded adjusted EPS by 47% compounded annually over that time.

以會計年度作結，隨著 2016 年結束，我們已連續三年創下前所未有的成長與獲利表現。我們達成 32% 的年複合成長率，過去三年營收增加逾一倍。調整後毛利率在同期間提升了 970 個基點。最重要的是，在這段期間我們的調整後 EPS 以年複合 47% 的速度擴張。

In summary, our model has clearly demonstrated the ability to deliver growth and profitability through good times and bad. Our business is diversified among multiple secular growth drivers, and within those secular growth drivers. We complement organic growth with disciplined and rigorous execution on acquisitions.

總結而言，我們的營運模式已清楚展現出在景氣好壞時都能帶來成長與獲利的能力。我們的業務分散於多個長期結構性成長驅動因素之間，並且在這些驅動因素內部也具分散性。我們以嚴謹且有紀律的併購執行來補強有機成長。

This has enabled us to sustain high growth rates year after year, and consistently through all market conditions. Furthermore, with added visibility into our next phase of growth drivers, datacenters, MMICs and GaN, we believe fiscal year 2017 holds the potential to deliver yet another year of similar growth and profitability.

這使我們得以年復一年維持高成長率，並在各種市場環境下保持一致表現。此外，隨著我們對下一階段成長驅動因素——資料中心、MMIC 與 GaN——的能見度提升，我們相信 2017 會計年度有潛力再度帶來類似的成長與獲利。

Operator, you can now open the call to questions.

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）

Harlan Sur, JPMorgan.

Harlan Sur，摩根大通（JPMorgan）。

Good afternoon, guys. Good to see the diversification in the business driving some growth here. OpEx was up almost $4.5 million sequentially, or up almost 10% sequentially. I guess, overall trying to figure out is, what drove the significant growth? Is there some near-term opportunity that the team is focusing on, because you did guide OpEx relatively flattish for the September quarter? And then, how should we think about the OpEx trajectory on a go forward basis? And then, I have a follow-up question.

各位下午好。很高興看到業務多元化在此帶動了一些成長。營業費用（OpEx）較前一季增加了將近 450 萬美元，約季增近 10%。我想整體上想釐清的是，是什麼因素驅動了這麼顯著的成長？是否有某些短期機會讓團隊正在聚焦，因為你們對九月季度的 OpEx 指引相對偏向持平？另外，往後我們應該如何看待 OpEx 的走勢？我還有一個追問。

Sure, Harlan. We settle our incentive compensation plans in the fourth quarter, and obviously, we had a pretty good year. So, as we go into guidance, we don't -- we have certain parts of the -- where we know where we are, and we have at this point, Board approval on everything, and finalize those numbers. So a variable item that we absorbed in the quarter. Going forward though, a portion of that represents -- that increase you mentioned of about $4.5 million represents -- a portion of it is the variable cost, so you will see expenses flat or slightly up in the fourth quarter, based upon the guidance we gave.

當然，Harlan。我們在第四季結算我們的激勵薪酬計畫，而顯然我們今年表現相當不錯。所以在我們提出財測指引時，我們不——我們在某些部分——我們知道目前的狀況，而且到目前為止，董事會已核准所有事項，並將那些數字定案。因此，這是一個我們在本季吸收的變動項目。不過往後看，其中一部分——你提到約 450 萬美元的增加——其中一部分屬於變動成本，所以依據我們給出的指引，你會看到第四季費用持平或小幅上升。

Okay, great. And then congrats on completing the Gen4 qual, and getting orders from your two lead base station customers. You talked about receiving, sort of initial production orders from these customers, which will most likely hopefully start to fire in the March quarter. So help us understand, if all goes well there, when does the MACOM team really start to turn the spigot on, and start to drive more, larger, more production type levels of shipments into these two base station customers. Is it second half of calendar 2017, how do we think about that ramp now that you've got fully qualified?

好的，很棒。接著恭喜完成 Gen4 認證，並且從你們兩家主要基地台客戶那裡拿到訂單。你提到已收到這些客戶某種程度上的初期量產訂單，最有可能、也希望會在 3 月季度開始出貨。那麼請幫我們理解一下，如果一切順利，MACOM 團隊何時會真正把水龍頭開大，開始推動更多、更大、偏量產等級的出貨量到這兩家基地台客戶？會是在 2017 年曆年下半年嗎？在已完全通過認證之後，我們現在該如何看待這個爬坡？

Absolutely. So that those initial production dates are in the March quarter, but it's in the second half of the year, that the ramp really turns on hard. The one thing, now these are the initial programs, with two specific solutions for those customers. What I mentioned last quarter, is those are platforms, that are poised to be able to proliferate within those customers to more and more programs. And what I would anticipate is, depending on our performance in terms of delivery and so on, that could actually start hitting critical mass, and really proliferating in the second half.

當然可以。那些初期量產時點是在 3 月季度，但真正大幅加速的爬坡會在下半年。需要注意的是，這些是初期專案，針對那兩位客戶各自的兩個特定解決方案。我上季提到的是，這些是平台，具備在客戶內部擴散到越來越多專案的條件。我預期，取決於我們在交付等方面的表現，這件事其實可能開始達到臨界規模，並在下半年真正擴散開來。

So we're cautiously optimistic. I can tell you those two customers are extremely passionate about adopting and deploying our GaN for various reasons, and with very, very strong value propositions that they believe in quite deeply. So it's -- we're off to the races, frankly.

所以我們是審慎樂觀。我可以告訴你，那兩家客戶對於採用與部署我們的 GaN 充滿熱情，原因有很多，而且他們非常深信其價值主張非常、非常強。所以——坦白說，我們已經起跑了。

Great. Just one last follow up. On the success of the catalog MMIC business. I mean, this has been part of the, I think, the diversification story, right? Because it's driven growth across A&D, it's driven growth across multi-markets. You're getting solid design win traction across both. You talked about some of your competitors here. How is the team winning here? I mean, what is MACOM's differentiator here? Is it performance, is it costs, is it integration? Help us understand what are some of the major drivers of success here?

很好。最後再追問一點。關於型錄（catalog）MMIC 業務的成功。我是說，這一直是我認為的多元化故事的一部分，對吧？因為它帶動了 A&D 的成長，也帶動了多元市場的成長。你們在兩邊都拿到很不錯的設計導入（design win）動能。你也提到了一些競爭對手。團隊是怎麼贏的？MACOM 在這裡的差異化是什麼？是效能、成本、還是整合？請幫我們理解一下，這裡成功的主要驅動因素有哪些？

Typically not costs or integration. MMICs are relatively a small scale integration. It is definitely performance. We've targeted next generation parametric performance across each of these product families. But I think equally importantly, we've positioned ourselves to kind of be on deck, that as similar competitors have hit bumps in the road, and are now focused elsewhere for various reasons undergoing consolidation.

通常不是成本或整合。MMIC 的整合規模相對較小。確實是效能。我們在每一個產品系列上都鎖定下一代的參數效能表現。但我認為同樣重要的是，我們把自己定位成隨時待命：當一些類似的競爭對手在路上遇到挫折，並且因各種原因（包括正在進行整併）而把重心轉向其他地方時，我們就能補位。

We have literally got a who's who of customers, who frankly view us as the last guy standing, who is really seriously and strategically committed to this category of product, and across multiple versions of MMICs. MMICs is a general generic category, but it's any one of a dozen product categories I'd say. But that type MMIC -- I mean, that to put it in context, Hittite before they were acquired, had about a $200 million MMIC business. And to put in context, after 10 years under Tyco, MACOM had $20 million MMIC business. So the playing field here is wide open for us, not just in the context of Hittite. But the other guys I mentioned, to be able to really dramatically expand our share, and drive growth in what is otherwise a modestly growing market.

我們真的擁有一份「名人錄」等級的客戶名單；坦白說，他們把我們視為最後一個仍然站著的人——唯一真正嚴肅且具策略性地承諾投入這個產品類別、並且涵蓋多種 MMIC 版本的供應商。MMIC 是一個一般性的泛稱，但我會說它其實涵蓋大約十幾個產品類別中的任何一個。不過那種 MMIC——我的意思是，為了提供背景，Hittite 在被收購之前，MMIC 業務大約有 2 億美元。再提供另一個背景，在 Tyco 旗下 10 年之後，MACOM 的 MMIC 業務是 2,000 萬美元。所以這裡的競爭場域對我們而言是完全敞開的，不只是相對於 Hittite 的脈絡。還有我提到的其他對手，我們有機會大幅擴大市占，並在一個原本僅溫和成長的市場中推動成長。

Great. Thank you.

很好，謝謝。

You're welcome. Good question.

不客氣。問得很好。

Thank you. Our next question comes from CJ Muse of Evercore.

謝謝。下一個問題來自 Evercore 的 CJ Muse。

Yes, good afternoon. Thank you for taking my question. I guess, first question on the gross margin guide, it's down ticking a little bit, curious if that's just a function of the slight top line decline and/or mix shift? And then, I guess bigger picture, thinking about the growing mix of GaN datacenter, and continued strength in MMIC into calendar year 2017. How should we think about gross margin uplift through the year?

是的，下午好。謝謝讓我提問。我想，第一個問題關於毛利率指引，它略微下滑，我好奇這是否只是因為營收小幅下滑和／或產品組合轉變所致？然後從更大的角度來看，考量到 GaN 資料中心的占比在提升，以及 MMIC 在 2017 年曆年持續強勁。我們應該如何看待今年毛利率的上升空間？

CJ, so the guide again, is subject to mix, not necessarily revenue level. We are still cautious in the transition. We've had improvement as I mentioned in my remarks, with respect to the 2016 acquisitions. There's still a bit of a burden, carry into next quarter, and that lends itself to the guidance. And there's some things that are very positive. We've completed the integrations and the swap-outs from the manufacturing at the two plants we're closing, will be moved til the end of that quarter. So I think it's a -- we're just a little in line from the -- making that all work. We saw improvement, the five best, which we noted, as now using more of our components, has improved and there is still some improvement there as well.

CJ，所以這個指引再次強調，是受產品組合影響，不一定是營收水準。我們在轉換期仍然保持審慎。正如我在談話中提到的，針對 2016 年的收購案，我們已有改善。仍有一些負擔會延續到下一季，這也反映在指引中。另外也有一些非常正面的進展。我們已完成整合，並且把我們要關閉的兩座工廠的製造移轉與替換（swap-outs）完成，會一路移到該季度末。所以我認為——我們只是讓整體運作更順暢、稍微對齊。我們看到改善；我們提到的前五大（客戶）現在使用更多我們的元件，已經帶來改善，而且那裡也還有進一步改善的空間。

To the bigger question over the year, I think as we look forward, and the mix continues to move, and the growth rates that we experienced this past year continue, and the mix of products that we have -- these are at or better than corporate average as we introduce them. So as we have stated, we are still confident -- timing a bit in question, but not very long-term, some place over the fiscal 2017 time frame will get overall for the Company at that 60% growth margin level.

就全年更大的問題而言，我認為當我們往前看，產品組合持續變動，而我們在過去一年經歷的成長率延續下去，再加上我們的產品組合——這些新導入的產品在毛利率上都達到或優於公司平均。因此如同我們先前所說，我們仍然有信心——時點上可能有些不確定，但不是很長期——在 2017 財年期間的某個時點，整體公司毛利率會達到 60% 的水準。

Yes, if I could build on that a little bit. Some of the areas that we're talking about being seasonally soft over in China, counter-intuitively are some of our highest margin business. So not only is there seasonality on the top line, but there's a seasonality impact on the mix.

是的，如果我可以再補充一點。我們提到在中國那邊季節性偏弱的一些領域，反直覺地其實是我們毛利率最高的業務之一。所以不只是營收有季節性，產品組合也會受到季節性影響。

That's very helpful. And I guess, as my follow-up, can you talk about planned use of proceeds with that term B refinancing?

這很有幫助。那我追問一下，你能談談那筆 Term B 再融資的資金用途規劃嗎？

Yes, so excellent question, CJ. We have been monitoring the debt markets over the course of the last 12 months. We came upon a market situation that was very, very favorable. We matched the terms of the original term B loan we did in 2014, in May of 2014.

可以，CJ，這是個很棒的問題。過去 12 個月我們一直在觀察債務市場。我們遇到了一個非常、非常有利的市場狀況。我們把條件做到了與我們在 2014 年（2014 年 5 月）做的原始 Term B 貸款相同。

That offering was extremely well-received, we could have raised another $100 million, but not necessarily in line with our overall debt management and leverage targets that we want to stay to, but we took an opportunity to reload. We've talked about the finishing of the integration of our existing acquisitions, and as obviously, we're looking to expand through acquisition. And if the opportunity is there, we have a regular pipeline that we, that is more or less a backlog. It doesn't mean everything in the pipeline is actually a transaction, but we're ready to move forward.

那次發行反應非常熱烈；我們其實可以再多募 1 億美元，但那不一定符合我們整體的債務管理與槓桿目標（我們希望維持在那些目標範圍內），不過我們把握機會重新補充彈藥。我們談過要完成既有收購案的整合，而顯然我們也在尋求透過收購來擴張。如果機會出現，我們有一條固定的案源管道，或多或少像是待辦清單。這不代表管道裡的每一個案子都會真的成交，但我們已準備好往前推進。

That's helpful. If I could just sneak one last in, what should we be thinking about for interest and other expense for the December quarter? Thanks so much.

很有幫助。如果我再偷問最後一個，對於 12 月季度的利息與其他費用，我們應該怎麼看？非常感謝。

Yes, the incremental increase in interest expense is on an annual basis, is about $12 million. It is a floating rate loan. Now markets and debt rates have gone up a little bit, but longer term, I anticipate to stay reasonably in the same level. So it's about $3.5 million to $4 million a quarter.

好的，利息費用的增量增加，以年化來看大約是 1,200 萬美元。這是一筆浮動利率貸款。現在市場與債務利率確實上升了一點，但長期來看，我預期會大致維持在相近水準。所以每季大約是 350 萬到 400 萬美元。

Thank you. Steve Smigie, Raymond James.

謝謝。Raymond James 的 Steve Smigie。

Great. Thanks a lot, and I'll add my congratulations on some solid results here.

很好。非常感謝，我也要恭喜你們這次交出一些很扎實的成果。

Thanks.

謝謝。

Yes, sure. I was wondering if I you could talk little bit more about the GaN business and the opportunity there? It seems like we're about to really hit the stride in terms of the ramp there. Just more in the context of a multi-year scenario, can you give some thoughts as it looks today, and as that could change over time, where do you hit 25% of the market GaN, 50%, 100%? And is it necessarily all cannibalistic of LDMOS, or can it be just additive as well?

是的，當然。我想請問你是否能再多談一點 GaN 業務以及那裡的機會？看起來我們即將在那個爬坡上真正進入節奏。以多年期的情境來看，你能否分享一些想法：以目前的狀況，以及隨時間可能的變化，你們何時能達到 GaN 市場的 25%、50%、100%？另外，它是否必然會完全侵蝕（cannibalize）LDMOS，還是也可能是額外增量（additive）的成長？

Well, I guess, there's scenarios where it's additive. Our observation is where a year or two ago, it was more of a technology evangelism state. I think universally, even the LDMOS guys have acknowledged and recognize the fact that the market is ready for a wholesale transition. I think there's differences of opinion about how quick it will move.

嗯，我想，在某些情境下它是加成的。我們的觀察是，一兩年前，還比較像是在做技術布道的階段。我認為普遍來說，甚至連 LDMOS 陣營的人也已經承認並認知到，市場已經準備好進行全面性的轉換。我想大家的分歧在於這個轉換會有多快。

My observation is, in the past for instance, the transition from prior VDMOS and other technologies to LDMOS, once they start moving, they move fast. And it's not unrealistic to say, that we could grow into a natural share condition. This market has operated with kind of a duopoly or oligopoly type supply condition, and I would expect that we could grow into that position over the next three years. Our aspiration is to be a very clear number one. And I think given the position we have, now validated legally in terms of the intellectual property that we hold, for what is realistically the only version again that can supply the mainstream part of the industry.

我的觀察是，過去例如從先前的 VDMOS 與其他技術轉換到 LDMOS，一旦開始動起來，速度就會很快。而且說我們可以成長到一個自然的市占格局，也並不不切實際。這個市場一直以來有點像是雙頭壟斷或寡頭供應的格局，我預期我們在未來三年可以成長到那個位置。我們的目標是成為非常明確的第一名。我認為以我們目前的地位——就我們所持有的智慧財產權而言，現在也已在法律上獲得驗證——對於實際上再次能夠供應產業主流部分的、幾乎唯一的版本而言。

I think we're very well-positioned to do so. We've got the support teams in place. We have the value proposition is very clearly demonstrated to everybody who matters, and the customers no longer even question that.

我認為我們非常有利於做到這一點。我們已經把支援團隊建置到位。我們的價值主張也非常清楚地向所有關鍵人士證明了，而客戶甚至已不再質疑這一點。

I think the remaining challenge we're going to have, which is the challenge you always want to have, is being able to scale that operationally from a production standpoint, both wafer supply and backend assembly and test. It's not trivial to be able to supply millions of units of this class of device. But we've got the team on board now, that's been there, done that with previous generations of technology. So there's no question, we're out of the gate in the fiscal second quarter, and it's going -- I think it's could be quite a ride.

我認為我們接下來剩下的挑戰——也是你總是希望遇到的那種挑戰——是能否從生產角度在營運上把規模拉起來，包括晶圓供應以及後段封裝與測試。要供應數百萬顆這一類器件並不容易。但我們現在已經有團隊到位，他們在前幾代技術上都做過、也做成過。所以毫無疑問，我們在會計年度第二季就會出閘，接下來——我想——可能會是一段相當刺激的旅程。

Yes, that's great. And yes, just a quick follow-up on that, was that you mentioned, that the lawsuit that you got the injunction. What are the next steps on that? And then, my real follow-up question was, on the new lasers that you introduced, it seemed like you got something 70% share I believe on PON. What's the opportunity here for the new lasers? Could you get a similar share level? Thanks.

是的，這很棒。那我再快速追問一下，你提到訴訟你們拿到了禁制令。接下來的步驟是什麼？然後我真正的追問是，關於你們推出的新雷射，看起來你們在 PON 上拿到了大概 70% 的市占（我記得是這樣）。這些新雷射的機會在哪裡？你們能拿到類似的市占水準嗎？謝謝。

Sure, so in terms of the outlook of the litigation with Infineon, once -- I mean, common practice is once you achieve the preliminary injunction, it's game, set, match. And I think, one would hope that rational minds would prevail, and we'd reach settlement. But you never know, I mean, it could drag on for two years, which, it is what it is. I can tell you the dominant majority of the stuff that we really cared about in the litigation, that we we're passionate about, has already been awarded as part of the preliminary injunction. So we're off to the races, and that's -- if anything, just a distraction frankly, on a go forward basis.

當然。就與英飛凌（Infineon）訴訟的後續展望而言，一旦——我的意思是，慣例上，一旦你取得初步禁制令（preliminary injunction），基本上就是勝負已定。我想，人們會希望理性的一方能占上風，然後我們能達成和解。但你永遠不知道，可能會拖上兩年；那也只能如此。我可以告訴你，在這場訴訟中我們真正關心、也非常在意的大多數事項，已經在初步禁制令中獲得裁定。所以我們已經可以全速前進；而那——如果說有什麼影響——坦白講，往後只會是一個分心的事情。

On the other issue, in terms of the opportunity with 25 gig lasers, I would say, our value proposition and the economic benefit of etch facet technology in datacenters is -- potentially dwarfs that of EFT and PON. And the reason is, where in PON, we were displacing incumbent vendors with very mature technology, very stable technology that they had been supplying, albeit with a superior cost structure and capacity capability, in datacenters there are no entrenched competitors. In fact, the people who've been supplying to date are -- have been supplying basically repurposed telecom lasers, which really aren't optimized for the costs or capacity that's required for datacenters.

至於另一個議題，關於 25G 雷射的機會，我會說，我們的價值主張以及蝕刻端面（etch facet）技術在資料中心的經濟效益——可能遠遠大於 EFT 與 PON。原因是，在 PON，我們是在以更優的成本結構與產能能力，去取代擁有非常成熟、非常穩定技術、且長期供貨的既有供應商；但在資料中心，並沒有根深蒂固的競爭者。事實上，到目前為止的供應者——基本上是把電信用雷射拿來改作（repurposed），而這些其實並沒有針對資料中心所需的成本或產能做最佳化。

The Etch Facet technology, I mean, we meet from a parametric performance standpoint, everything that the incumbents do. But for a small fraction of the price, these are very rich ASPs, there's a lot of economic leverage to deliver to our customers, to be able to drive the cost structure. As we talked about in our Analyst Day, we have the opportunity with the self-aligning EFT, the safety stuff to leverage. And in the second calendar quarter, the June quarter, we'll be rolling out production of the L-PICs, which profoundly change the cost structure for that front-end analog photonic content for datacenters.

蝕刻端面技術方面，我的意思是，從參數性能（parametric performance）的角度，我們在各項指標上都能達到既有供應商的水準。但價格只要其中一小部分。這些都是非常高的 ASP（平均售價），我們有很大的經濟槓桿可以交付給客戶，去推動成本結構的改善。正如我們在分析師日所談到的，我們有機會透過自對準 EFT、以及安全相關的部分來進一步槓桿化。而在第二個曆年季度、也就是 6 月季度，我們將開始量產 L-PICs，這將徹底改變資料中心前端類比光子（analog photonic）內容的成本結構。

So that is a breakout for us this year, that is not unlike the kind of growth driver we had with PON last year, where PON is kind of saturated, and will be a cash cow funding all this stuff. Datacenter is just an absolutely a fantastic opportunity, all on the back frankly, of the etch facet technology.

所以這會是我們今年的一個突破點，類似於我們去年在 PON 上的那種成長驅動力；而 PON 目前有點飽和，將會成為一頭現金牛來資助所有這些事情。資料中心則是一個絕佳的機會，而坦白說，完全是建立在蝕刻端面技術之上。

Great. All right. Well, congrats again, thank you.

很好。好的。那再次恭喜，謝謝。

Thank you.

謝謝。

Blayne Curtis, Barclays.

Blayne Curtis，巴克萊（Barclays）。

Hey, guys, this is Tom O'Malley on for Blayne Curtis. Can you provide some color on what segments are stronger and weaker, heading into the December quarter?

各位好，我是 Tom O'Malley，代替 Blayne Curtis 發問。你們能否提供一些看法，關於進入 12 月季度時，哪些細分市場較強、哪些較弱？

Yes, so metro long-haul ends up strong. We have good visibility. The real issue with that is shaping from a seasonality standpoint, a lot of the orders have been placed for delivery after the first of the year. So it's really a timing standpoint. That's why I said the year-end inventory effects totally predictable from our past.

好的，所以都會與長途（metro long-haul）表現偏強。我們的能見度不錯。真正的問題在於季節性下的出貨節奏塑形：很多訂單已經下了，但交期安排在明年年初之後。所以這主要是時間點的問題。這也是我說年末庫存效應，從我們過去的經驗來看是完全可預期的原因。

PON remains soft. Ever since -- for the last three years, since we had Mindspeed on board, they came in and educated us that PON was always seasonally soft. The explanation is, people tend to not dig up the ground during the winter season to lay new fiber. So there's a demand seasonality with the addition of the inventory effects.

PON 仍然偏弱。自從——過去三年以來，自從我們把 Mindspeed 納入之後，他們進來就教育我們，PON 一直都有季節性偏弱的特性。解釋是，人們在冬季通常不會去挖地鋪設新的光纖。所以除了庫存效應之外，需求本身也有季節性。

So a couple of our key optical markets, just seasonally soften, but they come back roaring in the March quarter. The one, slight thing there is, you have Chinese New Year that tempers that a little bit, and then the June and September quarters are boom quarters -- as you look at the past four quarters we delivered, that's been we would anticipate a very similar shape. On the A&D business, we've continue to progress the MMICs, the design adoption, the customer adoption remains strong. We have some element of seasonality there, but less so.

所以我們幾個主要的光學市場，季節性都會轉弱，但在 3 月季度會強勢回升。唯一稍微的因素是，中國新年會讓回升幅度稍微被抑制一些；然後 6 月與 9 月季度會是爆發性的季度——如果你看我們過去交付的四個季度，我們預期會有非常類似的走勢。在航太與國防（A&D）業務方面，我們持續推進 MMIC，設計導入、客戶採用度仍然很強。那裡也有一些季節性，但相對沒那麼明顯。

Thanks a lot. You guys spent a lot of time talking about MMIC, but how is ground-based radar arrays progressing, and can you give us an update on the progress in Norman, Oklahoma?

非常感謝。你們花了很多時間談 MMIC，但地面式雷達陣列的進展如何？另外能否更新一下奧克拉荷馬州諾曼（Norman, Oklahoma）那邊的進度？

Yes, so we shipped, we completed the shipment of production unit that's being assembled, and it's going to be installed in Norman, Oklahoma. I haven't heard that that has been completed. It may have been, but I don't tend to track that field trial. I can tell you there is a lot -- red hot activity among our customer base, and people preparing to respond to RFPs, preparing to be able to ship production for that radar installation.

好的，所以我們已經出貨並完成了正在組裝的量產單元（production unit）的出貨，接下來會安裝在奧克拉荷馬州諾曼。我還沒有聽說那邊已經完成安裝。也許已經完成了，但我通常不會追蹤那個現場試驗。我可以告訴你的是，在我們的客戶群之中有大量——非常火熱——的活動，大家在準備回應 RFP（招標書徵求提案），也在準備能夠為那個雷達安裝案出貨量產。

I think the very interesting development in the past week, is with the new administration talking about infrastructure investment. There's nothing more logical for infrastructure from our standpoint, than doing what'S drastically needed in the US, which is upgrading the aircraft control infrastructure, and weather forecast infrastructure. So by all sense of customer activities, in terms of preparation, partnering, that's looking more and more real. But again, the caution we have, short-term, we have explosive growth opportunity in advance of that, as we articulated on the back of the MMIC content. So we don't have to wait for Tiles to drive our growth for next year.

我認為過去一週非常有趣的發展，是新政府在談基礎建設投資。從我們的角度來看，沒有什麼比做美國迫切需要的事情更符合「基礎建設」的邏輯，也就是升級航空管制基礎設施，以及氣象預報基礎設施。所以從客戶活動的各種跡象來看——包括準備、結盟合作——這看起來越來越真實。但同樣地，我們短期的謹慎點在於：即便不靠那個案子，我們也有如我們所闡述的、基於 MMIC 內容所帶來的爆發性成長機會。所以我們不必等 Tiles 來驅動我們明年的成長。

Great. Thanks a lot, guys.

很好。非常感謝，各位。

You're welcome.

不客氣。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Tore Svanberg, Stifel.

Tore Svanberg，Stifel。

Yes, thank you, and nice execution. The first question is on GaN. So John, based on our due diligence, we're starting to see GaN popping up in people's supply chain. And I'm just wondering how you kind of balance that, because on the one hand, that could mean an acceleration of maybe GaN coming earlier? But then on the other hand, you got to sort keep an eye on all the IP out there, so how do you balance those two?

是的，謝謝，執行得很不錯。第一個問題是關於 GaN。所以 John，根據我們的盡職調查，我們開始看到 GaN 出現在一些人的供應鏈中。我只是想知道你們如何在這之間取得平衡，因為一方面，這可能意味著 GaN 可能會更早到來、甚至加速；但另一方面，你們又必須留意外部所有的 IP（智慧財產權），所以你們如何平衡這兩者？

Yes, so I can tell you when -- there's a lot of people talking GaN, they talk a good game. If you look at the actual operational requirements to deliver RF power transistors into that market, it is notoriously -- it's a roller coaster, and unpredictable. In my previous life, I saw demand increases, literally doubling within 30 days. You have to have a supply chain, which is CMOS-like in nature, meaning you have to be working out of factories that can handle surge capacity, and be able to deal with just even just regular capacity, and be able to scale up and down both ways.

是的，所以我可以告訴你，當——有很多人在談 GaN，他們講得頭頭是道。但如果你看實際要把 RF 功率電晶體交付到那個市場的營運要求，那是出了名的——就像坐雲霄飛車一樣，而且不可預測。在我之前的職涯裡，我看過需求增加，真的在 30 天內翻倍。你必須要有一條供應鏈，其本質要像 CMOS 一樣，也就是說你必須在能夠處理突發產能的工廠裡運作，既能應付尖峰產能，也能處理一般產能，並且能夠雙向擴產與縮產。

That is exactly what GaN on silicon does, and which we uniquely, and underscored with the legal developments over the past quarter, we uniquely have, customers recognize that. There are some kind of early generation niche programs, new frequency bands that have been serviced by GaN on silicon carbide. But realistically, from a supply chain and cost structure standpoint, those sources, regardless of who it is, simply aren't prepared to be able to handle the mainstream. That's why, fundamentally what we are doing, is we're attacking the heart of that $1 billion market, not the periphery.

這正是矽基 GaN（GaN on silicon）所做到的，而我們在這方面是獨一無二的——而且在過去一季的法律進展中也再次被凸顯——我們確實是獨一無二的，客戶也認可這一點。有一些較早期世代的利基專案、一些新的頻段，是由碳化矽基 GaN（GaN on silicon carbide）來服務的。但務實來看，從供應鏈與成本結構的角度，這些來源不論是誰，根本都還沒準備好去承接主流市場。這就是為什麼，從根本上說，我們正在做的，是攻打那個 10 億美元市場的核心，而不是邊緣。

Very good. And a question on the optical business, you talk about 60% share of the high-speed analog. And I was just wondering, would that refer to drivers, TIAs, and CDRs across all standards, or was that more of a comment, in regards to certain of those components, for certain standards?

非常好。那關於光學業務的問題，你提到高速類比（high-speed analog）有 60% 的市佔。我想請問，這是指在所有標準下的驅動器（drivers）、跨阻放大器（TIAs）以及時鐘資料恢復（CDRs）嗎？還是說這比較是針對某些標準下的某些元件所做的評論？

No. In fact, I want to emphasize, that's across all standards. We're not talking about some -- playing statistical games, where in some narrow niche we have large market share. This is across all standards, all products, all protocols, 60%.

不是。事實上，我想強調，那是涵蓋所有標準。我們不是在玩什麼——用統計手法做文章，在某個狹窄利基裡有很高市佔。這是跨所有標準、所有產品、所有協定，60%。

Very good. And last question, you mentioned you are now going to be breaking out datacenter. So I assume you are going to be breaking out datacenter revenue starting in the December quarter, is that the way I should think of it?

非常好。最後一個問題，你提到你們現在會把資料中心拆分揭露。所以我理解你們會從 12 月季度開始拆分揭露資料中心營收，我應該這樣理解嗎？

Yes. We will be -- just like we started talking about PON and metro long-haul, providing color on the overall dynamics, we'll be doing that on datacenters on a go forward basis. When we actually rolled up the datacenter number, it ended up frankly, larger, and larger growth than we anticipated. It is over-growing PON basically. Our investments are almost 100% in datacenter, in that category of product.

是的。我們會——就像我們開始談 PON 與都會長途（metro long-haul），提供整體動態的補充說明一樣——未來也會針對資料中心做同樣的揭露。當我們實際把資料中心的數字彙總起來時，坦白說，它比我們預期的更大，而且成長也更快。基本上它的成長速度超過 PON。我們在那一類產品上的投資幾乎 100% 都在資料中心。

And the opportunity for further growth, just in that category is great. But the fantastic thing is, there is yet again, the same TAM available for the lasers, sitting right next to the high-performance analog content. And as I mentioned with the EFT technology, we're extraordinarily well-positioned, arguably even better positioned to capitalize and command even greater market share with that. And right behind that, is the silicon photonics that we had, the L-PICs that we had talked about at the Analyst Day, which are -- we have wafers in line, that we expect to be shipping production.

而且在那個類別裡，進一步成長的機會非常大。但最棒的是，在高效能類比內容旁邊，雷射同樣還有一個 TAM（總可服務市場）。正如我提到的 EFT 技術，我們的佈局非常有利，甚至可以說更有利，去把握機會並取得更高的市佔。再往後，就是我們在分析師日談到的矽光子（silicon photonics），也就是我們談到的 L-PICs——我們已經有晶圓在產線上，預期會出貨量產。

So it's that close. It's reason why I made the comment, that if anything, time lines are pulling in. I didn't even anticipate that we would be this far along with the analog, never mind the lasers and the silicon photonics. So I think that's going to be a very hot topic, not just in the December quarter, but throughout 2017 and beyond.

所以就是這麼近。這也是我說如果有什麼的話，時程正在提前的原因。我甚至沒預期我們在類比方面會進展到這麼前面，更不用說雷射與矽光子了。所以我認為這會是一個非常熱門的話題，不只是 12 月季度，而是整個 2017 年以及之後。

Excellent. Very good. Thank you, guys.

太好了。非常好。謝謝各位。

You're welcome.

不客氣。

Vivek Arya, Bank of America.

美國銀行（Bank of America）的 Vivek Arya。

Thanks for taking my question. I had one longer term, and one question on fiscal year 2017. So on the longer term side, the concern with optics in the past has been, that it's been -- that there has been a lot of boom/bust cycles, that's why there isn't one large optics vendor. But this cycle, every optical vendor appears to be doing quite well. So maybe the question is, what is different about this cycle, versus what we have seen in the past? Why is this cycle more sustainable? And if everyone is doing well, who's losing share? Or is it just that the pie is getting so much bigger, that everyone can do well for some time?

謝謝讓我提問。我有一個較長期的問題，以及一個關於 2017 會計年度的問題。先談長期面：過去市場對光學的擔憂是——它有很多景氣循環的暴起暴落（boom/bust），這也是為什麼沒有一家大型的光學供應商。但這一輪週期，看起來每一家光學供應商都做得相當好。所以問題可能是，這一輪週期跟過去相比有什麼不同？為什麼這一輪更具可持續性？如果大家都做得很好，那是誰在流失市佔？還是說只是整個市場餅變得更大，所以大家在一段時間內都能做得很好？

No, I think there are some losers. I'm reluctant to talk about the competitors that aren't performing very well. I can tell you -- in our part of the market, the guys who we view as a sustainable position, will be Inphi in terms of the analog content. So it really is down to -- they with us, on the metro long-haul side.

不，我認為確實有一些輸家。我不太願意談那些表現不佳的競爭對手。我可以告訴你——在我們所處的市場區塊，我們認為具備可持續地位的對手，在類比內容方面會是 Inphi。所以基本上就變成——他們和我們，在都會長途那一端。

Semtech tends to compete more on the PON and moving into the datacenter space for the analog content. We're -- there's no question, we are right now in a very sweet spot, as it relates to metro build outs layering on top of long-haul build outs. I guess, you can make an argument that it's more sustainable, given the fact that the exploding demand for bandwidth is real this time. And customers are already talking about moving on to 400 gig, 400G, and they're still in the process of deploying 100G. So there seems to be an insatiable demand.

Semtech 比較是在 PON 上競爭，並且在類比內容方面往資料中心領域移動。我們——毫無疑問，就目前而言，隨著都會網建置疊加在長途網建置之上，我們正處在非常甜蜜的有利位置。你可以主張它更具可持續性，因為這一次對頻寬的爆炸性需求是真實的。而且客戶已經在談要往 400 gig、400G 前進，但他們仍在部署 100G 的過程中。所以看起來需求是無止盡的。

That said, our working assumption is each one of these segments within optical will have its day. PON, 2.5 gig PON, may soften for a bit. 10 gig PON is right behind it, but there's typically, you can have a valley before the peak with 10 gig. That's okay. Metro right now is carrying the day.

話雖如此，我們的基本假設是，光學裡的每一個細分市場都會有它的高峰期。PON、2.5 gig PON 可能會先走弱一段時間。10 gig PON 緊接在後，但通常在 10 gig 的高峰之前，可能會先出現一個谷底。這沒關係。現在是都會網在撐起整體表現。

The whole datacenter thing opportunity for us, with cloud service providers is arguably as big as everything we've done so far on the telecom service provider side. So that's -- and that's a totally different CapEx driver. So we assume that the boom and bust will remain, that's characteristic for the markets, and our answer to that is to diversify.

對我們而言，整個資料中心的機會——與雲端服務供應商合作——可以說規模可能跟我們迄今在電信服務供應商端所做的一切一樣大。所以——而且那是完全不同的資本支出（CapEx）驅動因素。因此我們假設景氣的暴起暴落仍會存在，這是市場的特性，而我們的應對方式就是多元化。

Yes, and just to add to that point, Vivek, we play in all geographies with multi-diversity of carriers. So Japan, China, North America, Europe, we're probably, as John says, the leader, but we're also the most diversified in terms of markets.

是的，Vivek，再補充一點，我們在所有地理區域都有布局，且電信業者（carriers）也高度多元分散。日本、中國、北美、歐洲——我們大概如 John 所說是領導者，但就市場面向而言，我們也是最多元分散的。

Yes, and there is another dimension, a subtlety here, Vivek, we passionately adhere to a component model. We don't have to sell everything to everybody, and by no means do we leverage people out with bundling things. We have customers who build their own lasers, and we're more than happy to sell them our high performance analog stuff, and they respect us for it. So and same thing, when we bring the roll out, merchant markets looking for photonic stuff, they can use our stuff or not.

是的，而且還有另一個面向，一個更細微之處，Vivek：我們非常堅持元件（component）模式。我們不需要把所有東西賣給所有人，我們也絕不會用綑綁（bundling）去把客戶「鎖」住。我們有些客戶自己做雷射，我們非常樂意只賣給他們我們的高效能類比產品，他們也因此尊重我們。同樣地，當我們推出產品、面向需要光子（photonic）相關的商用市場（merchant markets）時，他們可以用我們的產品，也可以不用。

So and customers respect us for that. We know our position. We have TOSAs, ROSAs, but we only address the sub segments in the market, and the customers and opportunities that are high margin. And the rest of the people, we use our capability as a reference design.

所以客戶也因此尊重我們。我們清楚自己的定位。我們有 TOSAs、ROSAs，但我們只切入市場中的某些子區隔，以及那些高毛利的客戶與機會。至於其他部分，我們會把我們的能力當作參考設計（reference design）。

We coach, and work with our customers, to help them do a better job using our components, using our optical sub assembly expertise. So it's, I think, we've got a very different model from what a lot of other people are pursuing. I'll leave it that way.

我們會指導並與客戶合作，協助他們更好地使用我們的元件，運用我們在光學子組件（optical sub assembly）方面的專業。所以我認為，我們的模式跟很多其他人追求的模式非常不同。我就先說到這裡。

Got it. Very helpful. And then, as my follow-up question, I think you recently raised some money. And I think M&A has been one preferred use of cash in the past. But just strategically, given the growth opportunity in front of you, would you prefer to continue to do sort of smaller tuck-in technology type transactions? Or do you think there's an opportunity to take the next step, and do something larger than what you have done before?

了解。非常有幫助。那接著我的追問，我想你們最近募了一些資金。而且我想過去併購（M&A）一直是現金的偏好用途之一。但從策略上看，考量你們眼前的成長機會，你們會偏好繼續做一些較小的、偏技術補強（tuck-in）的交易？還是你們認為有機會更進一步，做一個比過去更大的案子？

I think, we have done both. We've done transactions of various sizes. We're not shy, we're not meek and mild. But at the same time, we're not megalomaniacs.

我想，我們兩種都做過。我們做過不同規模的交易。我們不膽怯，也不溫吞。但同時，我們也不是自大狂。

To us, it's all about discipline. We want to pay the right price. The asset regardless of the size should be accretive, it should be accretive to gross margins, should be accretive to operating margins, should be accretive to earnings. And there aren't a lot of those assets available out there. But when they become available, at the right price, you can sure as hell bet that we're going to act.

對我們而言，一切都在於紀律。我們希望以正確的價格出手。不論資產規模大小，都應該具備增益性——應該對毛利率有增益、對營業利益率有增益、對獲利有增益。而市場上符合這些條件的資產並不多。但當它們以合適的價格出現時，你可以非常肯定我們一定會採取行動。

Yes. And the other point is, as we talked about in integrating these acquisitions, we don't talk so much about the investment that's been going on over the past -- GaN has been multi-year investments, where once these products turn on, that investment mode is behind us, as it is in the 25 gig laser for example, and we're just selling product. So we have capacity to do other things.

是的。另一點是，正如我們談到整合這些收購時所說，我們不太會去談過去一段時間持續進行的投資——GaN 是多年期投資；一旦這些產品開始放量，那種投資模式就已經在我們身後了，例如 25G 雷射也是如此，接下來我們就是在賣產品。因此我們有產能去做其他事情。

Thank you.

謝謝。

You're welcome. Great question.

不客氣。問題問得很好。

Thank you. Our final question comes from Quinn Bolton of Needham.

謝謝。我們最後一個問題來自 Needham 的 Quinn Bolton。

I had just two quick questions on optical, and then one on the new products. So just on the -- a clarification on the optical John, the 60% share you have in TIAs and drivers, was that a long-haul metro comment, or was that datacenter, or was it inclusive of all those segments?

我有兩個關於光學的簡短問題，然後一個關於新產品的問題。先就光學部分——John，想請你澄清一下，你們在 TIA 與驅動器的 60% 市占率，這是指長途/都會（long-haul/metro）的說法，還是資料中心（datacenter），或是包含所有這些區隔？

Two independent comments, they both happen to be 60% share. So one is on metro long-haul, 60% share across all standards, so again whether it's limiting or linear drivers, whether it's ACL versus DCL, all standards again. We're playing no games, in terms of taking subsets of the TAM, and claiming high percentages. So it's across everything.

這是兩個彼此獨立的說法，只是剛好都是 60% 的市占率。第一個是針對都會/長途市場：跨所有標準合計 60% 市占率；也就是說，不論是限制型或線性驅動器，不論是 ACL 或 DCL，涵蓋所有標準。我們不玩文字遊戲，不會只挑 TAM 的某些子集合來宣稱很高的百分比；我們說的是涵蓋全部。

And then separately, the revelation we came to, is our HPA - this is the ex Mindspeed stuff. Kind of behind the scenes, we haven't talked a lot about it, didn't want to telegraph a competitive move. But they really shifted from a focus on PON, which is -- a very cost constrained, in that product category, more of a commodity, over to datacenters. And they've had a breakout in the past year. When we added things up, bottoms up from customers, we realized two things.

另外，我們得到的一個發現是，我們的 HPA——這是前 Mindspeed 的那部分業務。某種程度上在幕後，我們沒有談太多，也不想提前釋放競爭動作的訊號。但他們確實從原本聚焦於 PON（在那個產品類別中成本約束非常強、較偏商品化）轉向資料中心。過去一年他們有明顯的突破。當我們從客戶端自下而上把數字加總後，我們意識到兩件事。

One is, from everything we could see, we had 60% share of all analog content across all those. And at the same time, the numbers added up to enabling over 1 million units, 1 million ports, which is in excess of what anybody reported that has been hit. So it's clear that datacenter, that 100 gig connectivity within datacenter is off to the races unequivocally, which is fantastic news, and in this first wave of products, being the analog content, we've already established a great position.

第一，從我們所能看到的一切來看，我們在所有這些領域的類比內容（analog content）合計市占率達到 60%。同時，這些數字加總起來，代表已支援超過 100 萬個單位、100 萬個埠（ports），這高於任何一家曾對外報告的已出貨量。因此很明顯，資料中心內部的 100G 連接正毫無疑問地快速起飛，這是非常好的消息；而在這第一波產品中（也就是類比內容），我們已經建立了很好的地位。

Great. Thanks for the additional detail. And then, just on the optical business, I know you said that the long-haul metro grew 49% quarter on quarter. I think you said PON was flat, datacenter obviously grew. Just wondering, was there part of the business outside of, I guess, fiber backhaul that was soft? I guess, with all that growth it -- I would have thought you might have had better than 5% sequential growth in optical. I'm just wondering if I missed something?

很好，謝謝你補充這些細節。接著就光學業務，我知道你說都會/長途季對季成長 49%。我想你也提到 PON 持平，資料中心顯然成長。想請問，除了我猜的光纖回傳（fiber backhaul）之外，是否還有哪一部分業務偏弱？因為在這麼多成長之下——我原本以為光學的序列成長可能會高於 5%。我想確認是不是我漏掉了什麼？

PON is an equally big number. And that, as we had predicted remained flat, flat quarter on quarter, so that kind of diluted the growth. So as -- but the fiber backhaul was not inconsequential amount of business that we had, that softened, at the same time as PON. And that's what brought the number down to 5%.

PON 的規模同樣很大。而且如我們先前預期，它季對季維持持平，所以在某種程度上稀釋了成長。再者，我們的光纖回傳業務規模也不是可以忽略的，但它在 PON 同時持平的情況下轉弱。這就是為什麼最後數字只有 5%。

Got it, okay. And then, just lastly, obviously you talked about great new opportunities in MMICs, in datacenter lasers, in GaN on silicon. And I'm just wondering, if you just look at calendar 2017 for those three opportunities, are they all sort of roughly the same revenue opportunity? Does one significantly overshadow the others? I'm just thinking, now each of those sound like they could easily become $10 million to $20 million opportunities over the course of the year. Just wondering if I'm thinking about that the right way, in terms of contribution to the top line?

了解，好的。最後一個問題，顯然你談到在 MMIC、資料中心雷射、以及矽基 GaN（GaN on silicon）方面有很好的新機會。我想請問，如果只看 2017 年曆年這三個機會，它們的營收機會大致相當嗎？還是其中某一個明顯大於其他？我在想，聽起來每一個在一年內都很容易成為 1,000 萬到 2,000 萬美元的機會。想確認我這樣思考對營收貢獻的方式是否正確？

Interestingly, we're just going through the analysis, looking at some of these SAMs, and they each add up to -- in the 2019 time frame, pretty clearly $1 billion round number in terms of TAM/SAM opportunity. So and we're extremely well-positioned, for the reasons I described in the scripted remarks. In each one of those, predicting how big they are, and even here, you start getting into predicting the minds of your customers, and how quickly they move.

有趣的是，我們正在做分析，檢視其中一些 SAM，而它們在 2019 年左右的時間框架下，加總起來相當清楚是約 10 億美元這個整數量級的 TAM/SAM 機會。而且基於我在事先準備的講稿中所描述的原因，我們的布局非常到位。至於每一項到底會有多大，甚至在這裡，你就開始進入預測客戶想法、以及他們推進速度的領域。

But I'll give you -- I'll leave you with this interesting concept. We've been fully invested in datacenters. We've been fully invested in GaN. We've been fully invested in MMICs with negligible revenue contribution.

但我給你——我用一個有趣的概念作結。我們在資料中心已經全力投入；我們在 GaN 已經全力投入；我們在 MMIC 也已經全力投入，但營收貢獻仍然微乎其微。

The operating leverage, as those things turn on, and add on top of the growth drivers that have brought us to date, notably the metro long-haul stuff. It's layers upon layers of growth contribution, that we don't have to materially add -- you do have to add some, but I think we can limit operating expense increases, to arguably half the rate of sales increases, and we can blast through that 30% operating margin, and really march over the coming years to 40%. And that's very real. I mean, all the things that are talked about, have real first tier customers, valid value propositions, and what's before us now, is almost entirely operating scaling operations. Which as I said before, is the problem you want to have.

當這些項目開始放量時所帶來的營運槓桿，會疊加在迄今為止推動我們成長的動能之上，尤其是都會/長途相關業務。這是一層又一層的成長貢獻，而我們不需要實質性地增加——當然仍需增加一些——但我認為我們可以把營業費用的增幅限制在銷售增幅的大約一半，並且可以強勢突破 30% 的營業利益率，並在未來幾年真正邁向 40%。這是非常真實的。我的意思是，所有被談到的事情，都有真正的一線客戶、合理的價值主張；而擺在我們面前的，幾乎完全是營運規模化的執行。正如我之前所說，這是你希望遇到的問題。

Thank you John.

謝謝你，John。

You're welcome.

不客氣。

Thank you. And at this time, I would like to turn the call back over to John Croteau for any closing remarks. Sir?

謝謝。此時我想把電話交回給 John Croteau，請他做任何結語。先生？

Great. So before closing today's call, I'm pleased to announce that we recently hired Steve Ferranti, as VP of Investor Relations. Steve comes to us with a long-standing relationships within the financial community, which is the by product of his time at Skyworks, as well as his years of experience as a sell-side analyst. This is a new position within MACOM, and it's aimed at helping to further enhance investor's understanding and appreciation of MACOM's growth opportunities, and ultimately enhancing shareholder value.

很好。在結束今天的電話會議之前，我很高興宣布，我們最近聘請 Steve Ferranti 擔任投資人關係副總裁。Steve 與金融圈長期維持良好關係，這是他在 Skyworks 任職期間，以及多年擔任賣方分析師所累積的成果。這是 MACOM 新設的職位，目標是進一步提升投資人對 MACOM 成長機會的理解與認同，並最終提升股東價值。

I'd also like to add that, to highlight several investor conferences we'll be attending over the next few months. We will be at the Raymond James Technology Conference in New York on December 5 and 6, followed by the Barclays Global TMT in San Francisco on December 7 and 8. We also plan to attend the Bank of America Merrill Lynch conference in Boston on December 15, and Needham's conference in New York on January 10 and 11. If you'd like to request a meeting while we're in your area, please email us at IR@MACOM.com. That concludes our remarks, and we appreciate you joining today's call. Operator, you may now disconnect the call.

我也想補充說明，接下來幾個月我們將參加數場投資人會議。我們將於 12 月 5 日與 6 日在紐約參加 Raymond James 科技會議，接著於 12 月 7 日與 8 日在舊金山參加 Barclays Global TMT。我們也計畫於 12 月 15 日在波士頓參加美國銀行美林（Bank of America Merrill Lynch）會議，並於 1 月 10 日與 11 日在紐約參加 Needham 的會議。如果您希望在我們到您所在地區時安排會面，請寄電子郵件至 IR@MACOM.com。以上為我們的說明，感謝各位參與今天的電話會議。接線員，您現在可以中斷通話。

Thank you, sir, and thank you, ladies and gentlemen. You may disconnect your lines at this time. Have a wonderful day.

謝謝您，先生，也謝謝各位女士與先生。此時您可以掛斷電話線。祝您有美好的一天。