MACOM Technology Solutions Holdings, Inc. (MTSI) 2018 Q2 法說會逐字稿

Good afternoon, and welcome to MACOM's Fiscal Second Quarter 2018 Financial Results Conference Call. (Operator Instructions) As reminder, this conference call is being recorded today, Tuesday, May 1, 2018. I will now turn the call over to Steve Ferranti, Vice President of Investor Relations at MACOM. Steve, please go ahead.

下午好，歡迎參加 MACOM 2018 會計年度第二季財務業績電話會議。(接線員指示) 提醒各位，本電話會議將於今天（2018 年 5 月 1 日，星期二）錄音。現在我將把電話交給 MACOM 投資人關係副總裁 Steve Ferranti。Steve，請開始。

Thanks, Shannon. Good afternoon, everyone, and welcome to MACOM's Fiscal Second Quarter 2018 Earnings Conference Call. Joining me today are MACOM's President and Chief Executive Officer, John Croteau; and Senior Vice President and Chief Financial Officer, Bob McMullan.

謝謝你，Shannon。各位下午好，歡迎參加 MACOM 2018 會計年度第二季財報電話會議。今天與我一同出席的有 MACOM 總裁兼執行長 John Croteau，以及資深副總裁兼財務長 Bob McMullan。

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

如果您尚未收到今天的財報新聞稿，可至 MACOM 網站 www.macom.com 的「投資人關係」專區取得。

Before I turn over the call to John, I'd like to remind everyone that management's prepared remarks and answers to your questions contain forward-looking statements, which are subject to certain risks and uncertainties. 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.

在我把電話交給 John 之前，我想提醒各位，管理層的事先準備發言以及對各位提問的回答中包含前瞻性陳述，且受某些風險與不確定性影響。由於實際結果可能與今天討論內容有重大差異，MACOM 主張適用《1995 年私人證券訴訟改革法》所載之前瞻性陳述安全港條款之保護。

For a more detailed discussions of the risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC, including its current report on Form 8-K filed today, its quarterly report on Form 10-Q filed on February 7, 2018, and its annual report on Form 10-K filed on November 15, 2017. Any forward-looking statements represents management's views only as of today, May 1, 2018, and MACOM assumes no obligation to update these statements in the future.

關於可能導致上述差異之風險與不確定性的更詳細討論，請參閱 MACOM 向美國證券交易委員會（SEC）提交的文件，包括今日提交的 Form 8-K 當前報告、2018 年 2 月 7 日提交的 Form 10-Q 季度報告，以及 2017 年 11 月 15 日提交的 Form 10-K 年度報告。任何前瞻性陳述僅代表管理層截至今日（2018 年 5 月 1 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 statements during this conference call will include discussion of certain adjusted non-GAAP measures and financial information, including all income statements, amounts and percentages, other than revenue, referred to on today's call, unless otherwise noted.

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；除營收外，今日電話會議中提及之所有損益表項目、金額與百分比，除非另有說明，均為經調整之非 GAAP 口徑。

These financial measures and a reconciliation of GAAP to adjusted non-GAAP results are provided in the company's press release and related Form 8-K, which was filed with the SEC today and can be found on the Investor Relations section of MACOM's website.

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 Form 8-K（今日已向 SEC 提交），並可於 MACOM 網站「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 MACOM's website.

若各位目前無法收聽完整電話會議，網路直播的錄音將於 MACOM 網站「投資人關係」專區提供至少 30 天。

And with that, I'll turn over the call to John for his comments on the quarter.

接下來，我把電話交給 John，請他就本季發表評論。

Thank you, Steve. Welcome, everyone, and thanks for joining us today. I'll begin today's call with an overview of our second quarter results for fiscal 2018, followed by a review of current end market conditions and near-term business trends. I'll then turn the call over to Bob McMullan, our CFO, who will review our financial performance in further detail.

謝謝你，Steve。歡迎各位，感謝今天加入我們。我將先概述我們 2018 會計年度第二季的業績，接著回顧目前終端市場狀況與短期業務趨勢。之後我會把電話交給我們的財務長 Bob McMullan，由他更進一步說明我們的財務表現。

I'll conclude today's prepared comments by providing an update on key business developments related to our long-term secular growth drivers before wrapping up with guidance for the fiscal third quarter of 2018.

在結束今天的事先準備發言前，我將就與我們長期結構性成長驅動因素相關的關鍵業務進展提供最新資訊，最後給出 2018 會計年度第三季的財測指引。

Jumping right into the numbers. Revenue for the fiscal second quarter was $150 million, up 15% sequentially. Adjusted gross margin was 52% with adjusted earnings coming in at $0.13 per diluted share. As expected, the December quarter did mark the bottom of the cycle for MACOM in terms of revenue and demand.

直接進入數字。會計年度第二季營收為 1.50 億美元，較前一季成長 15%。經調整毛利率為 52%，經調整每股稀釋盈餘為 0.13 美元。如預期，12 月季度確實標誌著 MACOM 在營收與需求方面的景氣循環底部。

Across our served markets, order intake and customer forecast have improved from the December quarter baseline.

在我們所服務的各個市場中，接單量與客戶預測相較於 12 月季度的基準水準已有所改善。

Looking at some of the details. Telecom revenue was up 15% sequentially, led by mobile front-haul, backhaul and PON. I was in China 3 weeks ago and was encouraged to see things improving, following 9 months of disruption. Demand is progressively strengthening. Customers are getting back to more normalized ordering patterns, providing us with longer-term forecast roadmaps and in certain cases, expediting us for products.

再看一些細節。電信營收較前一季成長 15%，主要由行動前傳（front-haul）、回傳（backhaul）以及 PON 帶動。我在三週前到訪中國，看到在經歷 9 個月的干擾後情況正在改善，令人鼓舞。需求正逐步增強。客戶正回到較為正常化的下單模式，向我們提供更長期的預測路線圖，並在某些情況下要求我們加急供貨。

While the recent announcements involving ZTE and Huawei present new uncertainties, we currently expect limited effect on short-term business in China. I'll explain that in further detail later in the call.

儘管近期涉及中興（ZTE）與華為的公告帶來新的不確定性，我們目前預期對中國短期業務的影響有限。我會在稍後的電話會議中進一步說明。

Looking at some of the moving pieces, as I reported last November, we saw an abrupt and significant pickup in orders in PON, demand for which had flatlined in the previous 6 months. We spent the early part of the March quarter reloading our production pipeline and had a partial quarter of shipments in Q2. Current forecasts from our customers and recent tenders from carriers suggests this recovery will carry through 2018, with an increasing mix towards 10G PON. With our laser production pipeline now largely reestablished, we expect Q3 to be a more full quarter of recovery in our PON business.

就一些變動因素而言，如我在去年 11 月所報告，我們看到 PON 訂單出現突然且顯著的回升；在此前 6 個月，該需求已趨於停滯。我們在 3 月季度的前段時間重新補充生產管線，並在第二季僅出貨了部分季度。客戶目前的預測以及營運商近期的標案顯示，這波復甦將延續至 2018 年，且產品組合將逐步提高 10G PON 的比重。隨著我們的雷射生產管線如今大致已重建完成，我們預期第三季將是 PON 業務更完整的一季復甦。

We've also seen initial recovery in fiber front-haul and backhaul for 4G and 5G networks. This, in fact, is now one of the strongest areas of customer demand in our telecom portfolio as mobile front-haul and backhaul begin to transition from 10-gig to 25 and 100-gig optical transport networks to support 5G traffic.

我們也看到 4G 與 5G 網路的光纖前傳與回傳出現初步復甦。事實上，隨著行動前傳與回傳開始從 10G 過渡到 25G 與 100G 光傳輸網路以支援 5G 流量，這已成為我們電信產品組合中客戶需求最強勁的領域之一。

For coherent Metro/Long-haul drivers, we saw inventories continue to drain at our Chinese customers during the March quarter, with production resuming primarily for demand outside of China. Along these lines, we're encouraged to see backlog build as Chinese carriers start to place orders for new Metro buildouts such as China Mobile's award to our customer, Nokia Shanghai Bell, covering 13 cities and 2 provincial backbone networks. As these Metro deployments roll out, we expect to see revenue recovery in this last remaining pocket of our telecom businesses that were impacted so dramatically in 2017. In total, we expect our telecom business to progressively recover and then resume more normalized growth through coming quarters in 2018.

在相干（coherent）都會/長途（Metro/Long-haul）驅動因素方面，我們看到中國客戶在 3 月季度持續去化庫存，而生產恢復主要是為了滿足中國以外的需求。在此脈絡下，隨著中國電信營運商開始為新的都會網建設下單（例如中國移動授予我們客戶諾基亞上海貝爾的標案，涵蓋 13 個城市與 2 個省級骨幹網），我們很高興看到在手訂單（backlog）正在增加。隨著這些都會網部署展開，我們預期在 2017 年受到劇烈衝擊的電信業務最後一個尚未復甦的區塊，將出現營收回升。整體而言，我們預期電信業務將逐步復甦，並在 2018 年接下來的季度恢復較為正常化的成長。

A couple of other things I'd like to note before moving on to data centers. Last quarter, we highlighted the impact that certain competitive developments had on our LR4 subassembly business. In response to this quarter, we took proactive action to exit the manufacture and sale of optical subassemblies. Consistent with our overall goal of providing high-margin analog and photonic semiconductor components, we will now sell chipsets and enable low-cost manufacturing partners for subassemblies. This action is expected to result in better overall cost structures for our TOSA customers, with improved gross margins for MACOM, as indicated by our Q3 guidance.

在轉到資料中心之前，我還想補充幾點。上季我們提到某些競爭態勢的發展對我們的 LR4 次組件（subassembly）業務造成影響。針對此情況，本季我們採取主動措施，退出光學次組件的製造與銷售。為符合我們提供高毛利類比與光子半導體元件的整體目標，我們將改為銷售晶片組，並協助低成本製造合作夥伴進行次組件製造。如我們第三季指引所示，此舉預期可為我們的 TOSA 客戶帶來更佳的整體成本結構，並提升 MACOM 的毛利率。

We believe this will allow us to get back to our 60% gross margin model quicker and more sustainably. Bob will provide more detail in his section.

我們相信，這將使我們更快且更可持續地回到 60% 毛利率的營運模型。Bob 將在他的部分提供更多細節。

Finally, 2 weeks ago, we proactively disclosed immaterial Q2 revenue exposure to the export ban imposed by the U.S. Department of Commerce on ZTE. In fiscal Q2, direct sales and sales through distribution to ZTE were $1.6 million. We have zeroed ZTE revenue out of our Q3 guidance. This is an unfortunate development for everyone involved as we have longer-term growth prospects underpinned with share awards and new product designs, which will now be delayed or may never be realized with ZTE. In the end, we anticipate the Chinese telecom supply chain and ecosystem will adapt to the ZTE development. Given our broader customer footprint and market-leading position and focus areas of business, we believe we can remain relatively agnostic to any potential share shifts.

最後，在兩週前，我們主動揭露美國商務部對中興通訊（ZTE）施加出口禁令所造成的、對第二季營收之非重大曝險。在會計年度第二季，對ZTE的直接銷售及透過通路的銷售合計為160萬美元。我們已在第三季財測指引中將ZTE營收歸零。這對所有相關方而言都是不幸的發展，因為我們原本有由配股獎勵與新產品設計所支撐的長期成長前景，但如今在ZTE方面將被延後，或可能永遠無法實現。最終，我們預期中國電信供應鏈與生態系將會因應ZTE事件而調整。鑑於我們更廣泛的客戶版圖、市場領先地位以及業務聚焦領域，我們相信我們能在相對程度上對任何潛在的市占移轉保持中立。

Moving to data centers. Data center revenue was up 23% sequentially across our broad portfolio of high-performance analog components, photonics chips and PHYs for enterprise and cloud data centers. Overall, demand for 100-gig connectivity within data centers remains robust. We expect our sales growth to remain supply-limited for the foreseeable future.

接著談資料中心。資料中心營收在我們涵蓋高效能類比元件、光子晶片以及面向企業與雲端資料中心的PHY等廣泛產品組合帶動下，季增23%。整體而言，資料中心內對100G連線的需求仍然強勁。我們預期在可預見的未來，我們的銷售成長仍將受供應限制所約束。

In spite of finite supply constraints, we estimate that we enabled 3 million 100-gig ports in data centers during the first half of fiscal 2018 versus 4 million ports for all of fiscal '17. We're aggressively working with our suppliers, our own factories and our strategic supply chain partners to scale production output over the coming quarters. Our Lowell factory is currently facing demand well in excess of our ability to supply across 2.5, 10 and 25-gig lasers. We're investing heavily in capital equipment for etching lasers and testing final products, and we're working to improve yields and increase factory productivity from our existing asset base.

儘管供應受限，我們估計在2018會計年度上半年，我們在資料中心端啟用了300萬個100G埠口，而2017會計年度全年為400萬個埠口。我們正積極與供應商、自有工廠以及策略性供應鏈夥伴合作，在未來幾季擴大產出規模。我們的Lowell工廠目前在2.5G、10G與25G雷射產品上，面臨遠高於我們供應能力的需求。我們正大幅投資於用於雷射蝕刻與最終產品測試的資本設備，並致力於提升良率、在既有資產基礎上提高工廠生產力。

In total, we expect sales in the data centers to grow progressively through each quarter in 2018 as we scale analog and laser capacity and ramp our L-PIC solutions.

總體而言，隨著我們擴充類比與雷射產能並加速導入L-PIC解決方案，我們預期2018年資料中心銷售將在每一季逐步成長。

Now moving over to I&D. Industrial and defense was $44 million for the quarter. This part of the business played out largely as expected, with Q2 revenue up 8% sequentially. As highlighted in previous calls, we continue to benefit from share gains as competitors undergo consolidation. Much of this growth comes from catalog products, which saw a very strong demand in the March quarter. There's a clear surge in bid activity and revived demand for these products, which is driven in part by retrofitting and modernizing military equipment, in which MACOM has long enjoyed an incumbent position. In total, we expect sales into industrial and defense to progressively grow through coming quarters in 2018 as we capture share in light of strengthening demands in industrial and defense capital programs.

接著談工業與國防（I&D）。本季工業與國防營收為4,400萬美元。這部分業務的表現大致符合預期，第二季營收季增8%。如先前電話會議所強調，隨著競爭對手進行整併，我們持續受惠於市占提升。這些成長多來自型錄產品，該類產品在3月季度需求非常強勁。投標活動明顯升溫，且對這些產品的需求回溫，部分原因是軍事裝備的改裝與現代化，而MACOM長期以來在此領域具既有供應商地位。總體而言，隨著工業與國防資本計畫需求走強、我們持續取得市占，我們預期2018年未來幾季工業與國防銷售將逐步成長。

With that, let me turn it over to Bob to review our fiscal second quarter financials in further detail.

接下來，我把時間交給Bob，請他更詳細地說明我們會計年度第二季的財務表現。

Thank you, John, and good afternoon, everyone. I will review MACOM's fiscal second quarter results and financial position, announce an agreement to exit the LR4 manufacturing business, discuss actions due to the U.S. Department of Commerce decision to deny exports to ZTE and comment on our recent Form 10-K/A filed last week.

謝謝你，John，各位下午好。我將回顧MACOM會計年度第二季的業績與財務狀況，宣布一項退出LR4製造業務的協議，討論因美國商務部決定拒絕對ZTE出口而採取的行動，並評論我們上週提交的Form 10-K/A。

Revenue in the fiscal second quarter was $150 million, down 19% year-over-year, but up from $131 million or 15% sequentially.

會計年度第二季營收為1.5億美元，年減19%，但較上一季的1.31億美元成長1,900萬美元，季增15%。

Revenue by end markets. Telecom was $64 million and 43% of total revenue, down 29% year-over-year. Data Center, $43 million and 28% of total revenue, down 16% year-over-year. And industrial and defense, $44 million and 29% of total revenues, down 3% year-over-year. Sequentially, telecom was up 15%. Data center was up 23%, and industrial and defense was up 8%.

依終端市場別之營收。電信為6,400萬美元，占總營收43%，年減29%。資料中心為4,300萬美元，占總營收28%，年減16%。工業與國防為4,400萬美元，占總營收29%，年減3%。就季比而言，電信成長15%。資料中心成長23%，工業與國防成長8%。

Non-GAAP gross profit and gross margin in the fiscal second quarter were $78 million and 51.6% of revenue, respectively, compared to $109 million and 58.5% of revenue, respectively, year-over-year and $70 million and 53.7%, respectively, on a sequential basis.

會計年度第二季非GAAP毛利與毛利率分別為7,800萬美元與占營收51.6%；相較之下，去年同期分別為1.09億美元與占營收58.5%，而上一季分別為7,000萬美元與53.7%。

In terms of operating expenses, total non-GAAP operating expenses were $62 million compared to $60 million year-over-year and $57 million sequentially. Adjusted operating expenses were up 3% year-over-year and up 9% sequentially.

在營業費用方面，非GAAP營業費用總額為6,200萬美元，相較去年同期為6,000萬美元、上一季為5,700萬美元。調整後營業費用年增3%、季增9%。

Adjusted R&D and SG&A expenses were $38 million and $24 million, respectively, in the fiscal second quarter.

會計年度第二季調整後研發（R&D）與銷售、一般及行政（SG&A）費用分別為3,800萬美元與2,400萬美元。

Non-GAAP income from operations and operating margins were $16 million and 11% of revenue, down 68% in dollars and down 16% on a percentage basis, respectively, year-over-year, and up 17% in dollars and essentially flat percentage-wise, respectively, on a sequential basis.

非GAAP營業利益與營業利益率分別為1,600萬美元與占營收11%；相較去年同期，金額年減68%，比率下降16個百分點；相較上一季，金額季增17%，比率則基本持平。

Net interest expense was up $200,000 over fiscal Q1. Our normalized non-GAAP income tax rate in the fiscal second quarter continued at 8%. Our GAAP effective tax rate was 3%. As to cash taxes, we had a net cash refunds of $100,000. We also resolved and completed IRS audits for tax years 2013 and 2014, which will deliver future refunds of approximately $3 million.

淨利息費用較會計年度第一季增加20萬美元。我們會計年度第二季的常態化非GAAP所得稅率維持在8%。我們的GAAP有效稅率為3%。就現金稅而言，我們淨收到10萬美元的退稅。我們也已解決並完成2013年與2014年稅務年度的IRS稽核，預計將帶來約300萬美元的未來退稅。

Our fiscal second quarter non-GAAP net income and EPS were $8 million and $0.13 per fully diluted share, respectively, down from $39 million and $0.63 year-over-year, but up from $7 million and $0.10 per share sequentially. Non-GAAP net income was down 79% year-over-year but up 28% sequentially. Non-GAAP EPS was down 79% year-over-year but up 30% sequentially.

我們會計年度第二季非GAAP淨利與每股盈餘（EPS）分別為800萬美元與每股0.13美元（完全稀釋後），低於去年同期的3,900萬美元與每股0.63美元，但高於上一季的700萬美元與每股0.10美元。非GAAP淨利年減79%，但季增28%。非GAAP EPS年減79%，但季增30%。

The share count used to calculate non-GAAP EPS was 65.6 million fully diluted shares.

用於計算非GAAP EPS的股數為6,560萬股（完全稀釋後）。

Adjusted earnings before interest, taxes and depreciation was $23 million, down 59% from $57 million in our fiscal 2017 second quarter but up 12% from $21 million, sequentially. GAAP cash flow from operations was $11 million compared to fiscal 2017 second quarter of less than $1 million, and less than $1 million during the fiscal first quarter of 2018.

調整後息稅折舊前盈餘（EBITDA）為2,300萬美元，較2017會計年度第二季的5,700萬美元年減59%，但較上一季的2,100萬美元季增12%。GAAP營運活動現金流為1,100萬美元，相較2017會計年度第二季不到100萬美元，以及2018會計年度第一季不到100萬美元。

After deducting capital expenditures, adjusted free cash flow was negative $2 million compared to negative $11 million in the fiscal second quarter of 2017, up from a negative $9 million sequentially.

扣除資本支出後，調整後自由現金流為負200萬美元，相較2017會計年度第二季為負1,100萬美元；亦較上一季的負900萬美元改善。

Key MACOM balance sheet numbers. At fiscal second quarter end, our cash, cash equivalents and short-term investments were $190 million, down from $197 million. Accounts receivables were $107 million, up from $97 million sequentially. Days sales outstanding were 65 days, down from 68 days sequentially. Inventories were $144 million, up 1% from $143 million sequentially. Inventory turns were 2x compared to 1.7x sequentially. Long-term debt was $684 million, inclusive of capital leases. Long-term debt is termed with minimum principal annual repayments until its maturity in May 2024. We also have $160 million of availability in undrawn -- in an undrawn credit line.

MACOM資產負債表關鍵數字。截至會計年度第二季季末，我們的現金、約當現金與短期投資為1.9億美元，低於先前的1.97億美元。應收帳款為1.07億美元，較上一季的9,700萬美元增加。應收帳款週轉天數（DSO）為65天，較上一季的68天下降。存貨為1.44億美元，較上一季的1.43億美元增加1%。存貨週轉率為2倍，相較上一季為1.7倍。長期負債為6.84億美元，包含資本租賃。長期負債為定期貸款，至2024年5月到期前，每年需償還最低本金。我們另有1.6億美元的可用額度，來自一筆尚未動用的信用額度。

MACOM is not currently subject to financial covenants. Covenants are only triggered if we draw $50 million of our revolver.

MACOM 目前不受財務契約條款約束。只有在我們動用 5,000 萬美元的循環信貸額度時，契約條款才會被觸發。

Capital expenditures in the fiscal second quarter were $13 million or 9% of revenue compared to $14 million or 11% of revenue sequentially. Depreciation expense was $7.6 million as compared to $7.5 million sequentially. Our investments in capital expenditure exceeded our current levels of depreciation, reducing our free cash flow by $5 million.

本會計年度第二季的資本支出為 1,300 萬美元（占營收 9%），相較於前一季為 1,400 萬美元（占營收 11%）。折舊費用為 760 萬美元，相較於前一季為 750 萬美元。我們在資本支出上的投資高於目前的折舊水準，使我們的自由現金流減少 500 萬美元。

We have signed an agreement, which allows MACOM to exit the manufacturing and sales of LR4 optical subassemblies while retaining key design talent and resources to supply related semiconductor components. The transaction, which we expect will close during our fiscal Q3, includes a license fee as well as the sale of related inventory and manufacturing equipment at net book value, generating incremental cash over the balance of fiscal 2018 and into early 2019. In accordance with GAAP, MACOM wrote down certain intangibles. The write-down is noncash and results in a GAAP loss.

我們已簽署一項協議，允許 MACOM 退出 LR4 光學子組件的製造與銷售，同時保留關鍵設計人才與資源，以供應相關的半導體元件。該交易預期將於我們會計年度第三季完成交割，內容包括授權費，以及以淨帳面價值出售相關存貨與製造設備，將在 2018 會計年度剩餘期間並延續至 2019 年初帶來額外現金流入。依據 GAAP，MACOM 對部分無形資產進行減記。該減記為非現金項目，並導致 GAAP 虧損。

In addition, as a result of the actions of the U.S. Department of Commerce related to ZTE, MACOM determined we should write off, for GAAP purposes, certain assets. This loss is noncash and approximates $9 million.

此外，由於美國商務部針對中興通訊（ZTE）的相關行動，MACOM 判定基於 GAAP 目的，我們應沖銷部分資產。此項損失為非現金項目，約為 900 萬美元。

One final point. Based on an SEC comment letter, MACOM amended its Form 10-K last week for its fiscal year 2017 on Form 10-K/A to remove certain unnecessary qualification in its internal control discussion. There were no changes to any numbers from our initial filing. Back to you, John.

最後一點。根據 SEC 的意見函，MACOM 上週以 Form 10-K/A 修訂了其 2017 會計年度的 Form 10-K，以移除其內部控制討論中某些不必要的限定性措辭。我們最初申報中的任何數字均未變更。交回給你，John。

Thanks, Bob. Now for some additional color on our longer-term secular growth drivers. We remain fully invested in bringing our portfolio of disruptive technologies, including GaN, L-PICs, 25-gig EFT lasers and active antenna products to fruition this year, monetizing those efforts across a range of target markets.

謝謝，Bob。接下來補充一些關於我們較長期結構性成長驅動因素的說明。我們仍全力投入，推動我們的顛覆性技術組合在今年開花結果，包括 GaN、L-PIC、25G EFT 雷射以及主動式天線產品，並在多個目標市場中將這些投入變現。

I'd like to take some time to explain how those efforts align with current areas of secular industry growth. Many of these insights were confirmed in executive meetings at 2 of our industry's preeminent trade shows last quarter, Mobile World Congress in Barcelona, followed by OFC in San Diego.

我想花點時間說明這些努力如何與目前產業結構性成長的領域相契合。其中許多洞見在上季我們於兩個業界最具指標性的展會之高階主管會議中獲得印證：先是在巴塞隆納的世界行動通訊大會（MWC），接著是在聖地牙哥的 OFC。

Mobile World Congress was all about 5G telecom networks, which represents an opportunity for MACOM in both RF and optical. On the Optical side, it's clear that 5G networks are moving right into our wheelhouse with fronthaul rooted in 25-gig lasers, analog and photonics; mid-haul rooted in 100-gig CWDM and PAM4, and backhaul rooted in coherent Metro links, a great example of which is China Mobile's recent award to Nokia Shanghai Bell. Even more exciting is a trend among the carriers to tap the same white box transceiver manufacturers for fronthaul and mid-haul optical links that we're establishing for cloud service providers. The synergies between these 2 high-growth optical markets aligning on the same transceiver and semiconductor supply chain could be quite powerful.

世界行動通訊大會的焦點全在 5G 電信網路，這對 MACOM 在 RF 與光學兩方面都代表機會。在光學方面，很明顯 5G 網路正快速進入我們的核心領域：前傳（fronthaul）以 25G 雷射、類比與光子技術為基礎；中傳（mid-haul）以 100G CWDM 與 PAM4 為基礎；回傳（backhaul）則以相干都會網（Metro）連結為基礎，其中一個很好的例子是中國移動近期授予 Nokia Shanghai Bell 的案子。更令人振奮的是，營運商正出現一個趨勢：在前傳與中傳的光學連結上，採用與我們為雲端服務供應商所建立的相同白牌（white box）收發器製造商。這兩個高成長光學市場在相同收發器與半導體供應鏈上形成一致，其協同效應可能相當強大。

On the wireless side, first, an update on our GaN initiative. Last quarter, we received volume production orders for 3 GaN programs that I had referred to in previous calls. They span 2.4 and 3.5 gigahertz, which are 4G and 5G frequency bands. Power level span 50 to 270 watts. This was previously the heart and soul of silicon LDMOS suppliers. Coming out of Mobile World Congress and our ST announcement last quarter, MACOM is now enjoying executive-level sponsorship within 2 of the top 3 OEMs in Europe and Asia. Their executives view GaN becoming available from ST's high-volume silicon fab as the catalyst that, over time, will enable GaN proliferation across mainstream base stations.

在無線方面，首先更新我們的 GaN 計畫。上季，我們收到先前電話會議中提到的 3 個 GaN 專案之量產訂單。其頻段涵蓋 2.4 與 3.5 GHz，分別屬於 4G 與 5G 頻段。功率範圍為 50 至 270 瓦。這過去一直是矽 LDMOS 供應商的核心領域。在世界行動通訊大會之後，加上我們上季與 ST 的公告，MACOM 現在在歐洲與亞洲前 3 大 OEM 中的其中 2 家，獲得了高階主管層級的支持。他們的高層認為，GaN 能夠由 ST 的高產量矽晶圓廠供應，將成為一個催化劑，隨時間推進，促使 GaN 在主流基地台中普及。

Our base station opportunity is actually much broader than just GaN. Drawing from our core strength in RF & Microwave, we have other product areas that likewise represent new revenue streams for our telecom business. Where GaN is the differentiator on the transmit side, on the receive side of base stations, we've been developing an incumbent position in front-end modules, or FEMs, for 4G and 5G, drawing from our decades-long leadership in microwave switch technology for radar systems.

我們的基地台機會其實遠不止於 GaN。憑藉我們在 RF 與微波領域的核心優勢，我們還有其他產品領域同樣可為電信業務帶來新的營收來源。若 GaN 是發射端的差異化關鍵，那麼在基地台接收端，我們正憑藉在雷達系統微波開關技術數十年的領導地位，建立在前端模組（FEM）上的既有優勢地位，涵蓋 4G 與 5G。

FEMs are the functional equivalent of the multichip modules that mobile RF suppliers ship in the handsets and smartphones. But these are high-power versions for base stations that require high-power RF technologies, which are MACOM's core competence.

FEM 的功能等同於行動 RF 供應商在手機與智慧型手機中出貨的多晶片模組。但這些是用於基地台的高功率版本，需要高功率 RF 技術，而這正是 MACOM 的核心能力。

Inside these FEMs are proprietary AlGaAs and HMIC switches that provide the industry's lowest insertion loss for high-power antennas. This extends the antenna's range and subscriber count significantly by allowing weaker signals to get through, a key differentiator as operators strive to maximize cell coverage and quality of service. Our switches have actually always sold in the base stations. However, the advent of 5G makes this a much bigger deal economically for both MACOM and the carriers. Massive MIMO increases element count and our SAM by 16- to 32-fold, and higher frequency 5G bands naturally challenge the antenna's range of coverage. For this reason, base station OEMs are sponsoring MACOM on the receive side, much like GaN on the transmit side. We believe our sub-6 gigahertz approach creates a large high-growth and high-value market for our fully mature and highly proprietary microwave switch and FEM portfolio. Given this near-term window of opportunity, we've been focusing the majority of our RF & Microwave investments towards operationally scaling this business in 2018 as well.

這些 FEM 內含專有的 AlGaAs 與 HMIC 開關，可為高功率天線提供業界最低的插入損耗。藉由讓較弱的訊號得以通過，可大幅延伸天線覆蓋範圍並提升可服務用戶數，這是營運商力求最大化小區覆蓋與服務品質時的關鍵差異化因素。事實上，我們的開關一直都有在基地台中銷售。然而，5G 的到來使得這在經濟效益上對 MACOM 與營運商而言都變得更為重要。大規模 MIMO 會增加天線單元數量，並使我們的 SAM 擴大 16 至 32 倍；同時，更高頻的 5G 頻段也自然會對天線覆蓋範圍帶來挑戰。因此，基地台 OEM 在接收端對 MACOM 提供支持，類似於發射端對 GaN 的支持。我們相信，我們的 sub-6 GHz 方案為我們已完全成熟且高度專有的微波開關與 FEM 產品組合，創造了一個龐大、高成長且高價值的市場。鑑於這個短期機會窗口，我們也在 2018 年將大部分 RF 與微波投資聚焦於營運層面擴大此業務規模。

Let me be clear about something. When I talk about 5G, we're engaged on sub-6 gigahertz microwave antenna units, which were a natural evolution from 4G LTE macrocell base stations. We're not addressing 24 gigahertz and above millimeter wave bands, which play to the strength of handset RF suppliers. We don't have to wait for small cell base stations for demand to materialize.

我想把一件事說清楚。當我談到 5G 時，我們參與的是 sub-6 GHz 的微波天線單元，這是從 4G LTE 宏蜂巢基地台自然演進而來。我們不切入 24 GHz 以上的毫米波頻段，那些更符合手機 RF 供應商的強項。我們不必等待小型基地台，需求就會實現。

In summary, we expect our various Optical, GaN and FEM products for 4G and 5G to progressively contribute to top line growth quarter-by-quarter in calendar 2018.

總結而言，我們預期在 2018 年曆年期間，我們各項用於 4G 與 5G 的光學、GaN 與 FEM 產品，將逐季對營收成長做出貢獻。

While for MACOM, Mobile World Congress was all about 5G telecom networks, OFC was all about optical connectivity and cloud data centers. The show was enlightening in many ways. One of the more interesting findings is that the cost of high-speed optical connectivity and cloud data centers now actually dominates the cost of the Layer2/Layer3 networking switch. This trend is expected to continue through 400-gig 3 years to come. The industry needs economic breakthroughs, like those we bring to bear with manufacturing innovations like etch facet lasers and self-aligning L-PIC technologies.

對 MACOM 而言，世界行動通訊大會聚焦於 5G 電信網路，而 OFC 則聚焦於光學連結與雲端資料中心。該展會在多方面都帶來啟發。其中一個較有趣的發現是，高速光學連結與雲端資料中心的成本，如今實際上已主導了第 2 層/第 3 層（Layer2/Layer3）網路交換器的成本。預期此趨勢在未來 3 年、一路到 400G 時代仍將持續。產業需要具經濟性的突破，例如我們透過蝕刻端面雷射（etch facet lasers）與自對準 L-PIC 技術等製造創新所帶來的突破。

This year, it's clear that the market demand is all about CWDM4. Demand continues to outstrip supply of 100-gig transceivers from any and all sources. And the emergence of white box transceivers promises to fill that void.

今年，很明顯市場需求的重點都在 CWDM4。來自任何與所有來源的 100G 收發器需求仍持續超過供給。而白牌收發器的出現，承諾將填補這個缺口。

At OFC, 2 high-volume module manufacturers were showcasing production-ready QSFP28 transceivers based on our L-PIC platform, showing interoperability with conventional discrete versions. They're now actively marketing those products to major cloud service providers, and we expect those commercial negotiations and end customer qualifications to begin contributing to revenue growth in calendar 2018 and for many years to come.

在 OFC 上，有 2 家高出貨量的模組製造商展示了基於我們 L-PIC 平台、可量產的 QSFP28 收發器，並顯示可與傳統分立式版本互通。他們目前正積極向主要雲端服務供應商行銷這些產品，我們預期這些商務談判與終端客戶資格認證將在 2018 年曆年開始對營收成長做出貢獻，並在未來多年持續。

Separately at OFC, 2 other high-volume OEMs were demonstrating 100-gig single lambda transceivers, running live traffic based upon our PAM4 PHY with standards-based end-to-end interoperability. This is all the more impressive because the analog laser and photonics challenge with single lambda is, if anything, more daunting than the DSP in meeting performance and power targets. We believe these customers are on track to begin production ramps starting in 2019.

另外在 OFC，上述之外的 2 家其他高出貨量 OEM 展示了 100G 單波長（single lambda）收發器，基於我們的 PAM4 PHY 跑即時流量，並具備符合標準的端到端互通性。這更令人印象深刻，因為單波長在類比雷射與光子學上的挑戰，即便不說更艱鉅，也至少不亞於 DSP 在達成效能與功耗目標方面的難度。我們相信這些客戶正按計畫在 2019 年開始量產爬坡。

Another interesting finding is that 100-gig CWDM4 and PAM4 are now predicted to have long life cycles, much like 10G enjoyed over the past decade. 400-gig PAM4 is now predicted to be a 2021 phenomenon. Until then, we see an open playing field for proliferating 100-gig single lambda solutions across top-tier customers and into new market segments that are showing keen interest in PAM4.

另一個有趣的發現是，100G CWDM4 與 PAM4 現在被預測將擁有很長的產品生命週期，就像過去十年 10G 所享有的一樣。400G PAM4 現在被預測將在 2021 年成為主流現象。在那之前，我們看到 100G 單波長解決方案在一線客戶之間以及延伸至對 PAM4 展現高度興趣的新市場區隔，仍是一個開放的競爭場域。

In total, we expect our 25-gig lasers, L-PICs and PAM4 products to contribute to top line growth quarter-by-quarter in cloud data centers through calendar 2018.

整體而言，我們預期我們的 25G 雷射、L-PIC 與 PAM4 產品，將在 2018 年曆年期間於雲端資料中心按季推動營收成長。

Finally, for industrial and defense. As I mentioned earlier, we're seeing a healthy rise in demand from defense programs as agencies look to retrofit and modernize military equipment in the field. This is the strongest bidding activity that I've seen in my 5 years at MACOM. On top of this groundswell of activity, opportunities are presenting themselves for active antenna programs that address certain urgent battlefield vulnerabilities.

最後，談工業與國防。如我先前提到的，隨著各機構希望對現場軍用裝備進行改裝與現代化，我們看到來自國防專案的需求正健康上升。這是我在 MACOM 這 5 年來見過最強勁的投標活動。在這波活動浪潮之上，針對某些迫切戰場弱點的主動式天線專案也正浮現機會。

Just like in 5G telecom and cloud data centers, we now see an opportunity to leverage our work with empowered MIT Lincoln Labs to contribute to revenue growth in calendar 2018. I'm hopeful that I'll be able to report on impending successes in future earnings calls.

就像在 5G 電信與雲端資料中心一樣，我們現在也看到一個機會，能運用我們與 MIT 林肯實驗室（Lincoln Labs）合作的成果，在 2018 年曆年帶動營收成長。我希望未來的財報電話會議上，能回報即將到來的成功進展。

So in summary, standing in stark contrast for the cyclical challenges that we have to navigate during the past year, the tide seems to have turned. Near-term demand has firmed up, and we believe it's strengthening across many end markets and customers. With the recent award of 5G metro and provincial deployments in Nokia Shanghai Bell and others, the last remaining pocket of the downturn caused by the China government transition looks to soon be behind us. While the latest developments with ZTE and Huawei create new uncertainties, it's important to note that MACOM supplies technology and products that are not readily replicated by anyone anywhere, including China. Chinese carriers and OEMs view MACOM quite favorably, having an essential portfolio of enabling products and technologies for their 5G network buildouts. While we're hopeful that these international trade issues will be resolved constructively, we'll remain cautious in managing expectations.

因此總結來說，與我們在過去一年必須因應的景氣循環挑戰形成鮮明對比的是，情勢似乎已經轉向。短期需求已趨於穩固，我們相信它正在多個終端市場與客戶群中增強。隨著近期諾基亞上海貝爾（Nokia Shanghai Bell）等公司獲得 5G 都會與省級部署的標案，由中國政府換屆所造成的下行週期最後一塊低迷區域，看來很快就會成為過去。儘管中興與華為的最新發展帶來新的不確定性，但重要的是要注意，MACOM 供應的技術與產品在全球任何地方都不容易被複製，包括在中國。中國電信營運商與 OEM 對 MACOM 的評價相當正面，因為我們擁有其 5G 網路建設所需的一套關鍵使能產品與技術組合。雖然我們希望這些國際貿易議題能以建設性的方式解決，但在管理市場預期方面我們仍將保持審慎。

At a higher level, the future looks very bright for MACOM. The industry is entering the next phase of infrastructure spending globally, driven by 5G telecom, continued strong investment by cloud service providers, and now, even a surge in defense spending and industrial capital investment. We spent the last few years developing a portfolio of disruptive products and technologies to service these targeted areas of secular growth. Major customers and market leaders have now validated our products and are actively sponsoring MACOM as we ramp into high-volume production. Many of these products use highly specialized proprietary materials manufacturing processes, which take time to perfect, yet provide strong barriers to entry once it ramps. Scaling these into high-volume production brings its own set of challenges, very different than most other parts of the semiconductor industry, which is commoditized to packages and processes. Based on our progress to date, we're confident in our ability to bring these solutions to high-volume production over the coming quarters.

從更高層次來看，MACOM 的未來非常光明。在 5G 電信、雲端服務供應商持續強勁投資，以及如今甚至國防支出與工業資本投資激增的帶動下，產業正進入全球基礎建設支出的下一階段。過去幾年，我們投入開發一套具顛覆性的產品與技術組合，以服務這些具長期結構性成長的目標領域。主要客戶與市場領導者如今已驗證我們的產品，並在我們邁向高出貨量量產爬坡之際，積極支持 MACOM。其中許多產品採用高度專業化的專有材料製造流程，這些流程需要時間才能臻於完善，但一旦量產爬坡後，將形成強大的進入門檻。將這些技術擴展到高出貨量量產也帶來其自身的一系列挑戰，與半導體產業其他多數領域（已商品化到封裝與製程）非常不同。基於我們迄今的進展，我們對於在未來幾個季度將這些解決方案導入高出貨量量產的能力充滿信心。

In total, we expect these new products to contribute to top line revenue quarter-by-quarter in calendar 2018 and fuel MACOM's growth in 2019 and beyond. This will be paced by our ability to scale operationally, both within our strategic suppliers and within our own factories. Ultimately, we believe the future contribution from this growth will provide significant operating leverage as we monetize what were previously strategic investments for the company. Moving forward, we're going to take it one quarter at a time based upon customer backlog, order visibility and our operational ability to deliver these new products and technologies.

整體而言，我們預期這些新產品將在 2018 年曆年按季貢獻營收，並在 2019 年及之後推動 MACOM 的成長。其進度將取決於我們在營運規模化方面的能力，包括在策略供應商端以及我們自有工廠內部。最終，我們相信這些成長帶來的未來貢獻，將在我們將先前的策略性投資變現時，提供顯著的營運槓桿。展望未來，我們將依據客戶積壓訂單、訂單能見度以及我們交付這些新產品與技術的營運能力，以一季一季的方式推進。

So that brings me to Q3 guidance. As Bob noted earlier, we're guiding Q3 having exited LR4 subassemblies. For context, if we were to restate Q2 on a pro forma basis, our reported revenue would've been $138 million, 54% adjusted gross margin and $0.09 adjusted EPS. For the fiscal third quarter ending June 29, 2018, we expect revenue to be in the range of $142 million to $150 million. Adjusted gross margin is expected to be between 54% and 57%, and adjusted earnings per share between $0.09 and $0.15 on an anticipated 66 million fully diluted shares outstanding.

接下來談第三季（Q3）財測指引。如 Bob 先前提到的，我們在退出 LR4 子組件業務後，提出 Q3 指引。作為背景說明，若我們以擬制（pro forma）基礎重述 Q2，我們的公告營收本會是 1.38 億美元、調整後毛利率 54%，以及調整後每股盈餘（EPS）0.09 美元。對於截至 2018 年 6 月 29 日的會計年度第三季，我們預期營收將落在 1.42 億至 1.50 億美元之間。調整後毛利率預期介於 54% 至 57%，在預估完全稀釋後流通股數 6,600 萬股的前提下，調整後每股盈餘介於 0.09 至 0.15 美元。

As you can see, our Q3 guidance represents continued recovery in demand and significant gross margin expansion at the short-term expense of minor dilution in EPS from the transaction.

如各位所見，我們的 Q3 指引反映需求持續復甦，以及毛利率顯著擴張；短期代價是該交易對 EPS 造成些微稀釋。

Longer term, we believe this move will help us scale both 5G telecom and cloud data center revenue at gross margins that are at or above our target financial model. Operator, you can now open the call to questions.

從較長期來看，我們相信這項舉措將有助於我們在毛利率達到或高於目標財務模型的水準下，擴大 5G 電信與雲端資料中心的營收規模。接線員，現在可以開放提問。

(Operator Instructions) Our first question comes from Blayne Curtis with Barclays.

（接線員指示）我們的第一個問題來自 Barclays 的 Blayne Curtis。

John, just wanted to make sure I heard you right. You said if you took the LR4 out of the $138 million in March, so is there no LR4 in the June guidance? And then, maybe just talk about the margin, even you said it would be restated at 54, your guidance suggests an uplift there, maybe you could just talk about the drivers of the improving gross margin.

John，我只是想確認我有沒有聽對。你說如果把 LR4 從 3 月的 1.38 億美元中剔除，所以 6 月的指引裡就沒有 LR4 了嗎？另外，也想請你談談毛利率；你說重述後會是 54%，但你的指引看起來有上調，能否談談推動毛利率改善的因素？

Yes. Good questions, Blayne. Yes. So there is, based upon closing date, a small amount of contribution in the next quarter that does have some dilutive effect on gross margin, also some residual revenue, but the actual contribution to our earnings is de minimis. We actually bracketed our guidance to incorporate different timing and closing. We think it's going to be very quick and clean, but if it takes a longer, we'll have a little more revenue and a little lower gross margin mix and vice versa. So we model that out to make sure we bracketed things properly. And you're right, there's gross margin expansion implicitly, about 200 basis points due to the extraction of the LR4 business. We also have the expanding gross margins with lift in the new products and the growth in the recovery. And we can -- it's the same old recipe, Blayne, for the gross margin expansion. I think the last remaining piece, as the Metro/Long-haul stuff recovers, we've got the orders building for recovery, some kind of last pocket. I think we'll continue to see gross margin expansion through the course of the year, hopefully getting to our 16% target sooner rather than later.

是的。好問題，Blayne。是的。因此，依據交割日期，下一季會有少量貢獻，確實會對毛利率造成一些稀釋影響，也會有一些剩餘收入，但對我們獲利的實際貢獻微乎其微。我們其實已在指引中設定區間，以納入不同的時點與交割情境。我們認為會非常快速且順利，但如果花更久時間，我們的收入會多一些、毛利率組合會低一些，反之亦然。所以我們把這些都建模，確保指引區間涵蓋得當。而你說得對，隱含有毛利率擴張，約200個基點，來自於剝離LR4業務。我們也會因新產品帶動與復甦成長而看到毛利率擴張。而且我們可以——Blayne，毛利率擴張還是同樣的老配方。我想最後剩下的一塊是，隨著都會/長途（Metro/Long-haul）業務復甦，我們的訂單正在累積以支撐復甦，算是最後一個小缺口。我認為我們會在今年的過程中持續看到毛利率擴張，希望能更早而不是更晚達到我們16%的目標。

Actually following up on that last quarter, you talked about a couple of headwinds to gross margin, mix shift down, I think, in telco and then some pricing pressure in data center, just kind of curious to your thoughts on the overall pricing environment?

其實延續你剛剛提到的，上季你談到毛利率有幾個逆風，包括產品組合下移，我想是在電信端，然後資料中心也有一些價格壓力；想請教你對整體定價環境的看法？

I'd say, the way I'd describe it on the data center side is the economics change as it scales from it's 1.6 million units, ports a few years ago to, I think, it was 4 million ports last year. As it continues, I mean, the numbers change. Actually, from a gross margin percentage, we've been able to maintain that analog business at the previous numbers, which are very attractive. I described it as "Hittite-like". So -- but that's a testament to the fact that we're managing our cost structure consistent with the market ASPs. I think the other mix shift might have been the Metro/Long-haul thing that I had mentioned in terms of the unfavorable mix. I mean, that's traditionally been a very nice and lucrative business, those Metro/Long-haul drivers and so on. But again, that's on its path to recovery now as well.

我會說，就資料中心端而言，我的描述方式是：當規模從幾年前的160萬個單位/埠，成長到我記得去年是400萬個埠時，經濟性會改變。隨著它持續擴大，數字就會變。不過就毛利率百分比而言，我們一直能把那個類比業務維持在先前的水準，而且非常有吸引力。我把它形容為「像Hittite那樣」。所以——但這也證明我們能在市場ASP（平均售價）水準下，管理好與之相符的成本結構。我想另一個組合變化可能是我提到的都會/長途（Metro/Long-haul）部分，也就是不利的組合。我的意思是，那傳統上一直是很不錯、很賺錢的業務，那些都會/長途驅動器等等。但同樣地，那部分現在也正走在復甦的路徑上。

Our next question comes from Quinn Bolton with Needham & Company.

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

Maybe I'm looking at this the wrong way, but obviously, we've got consensus estimates out for the June quarter that included the LR4 business you're guiding to no, or very small LR4 revenue in your 142 to 150 guide. Can you give us some sense of what -- had you not sold the business, what the revenue guide might have been? It looks like LR4 revenue in March was about $12 million, would it have stayed at about that level in June?

也許我看法不對，但很明顯市場對6月季度有共識預估，而那裡面包含了LR4業務；但你們在142到150的指引中，對LR4收入的指引是沒有或非常少。能否讓我們了解一下——如果你們沒有出售該業務，收入指引大概會是多少？看起來3月的LR4收入約1,200萬美元，6月會維持在差不多的水準嗎？

Go ahead, Bob.

Bob，你來回答。

Quinn, it would probably, on a full quarter basis, be in the $9 million to $11 million range. That's nowhere near where it's going to be. The contribution on that was this is a declining margin business, as we've talked about here. So the contribution of past quarters is not representative of what it would be on our books going forward. So again, overall, I think, it's de minimis from an EPS perspective. There were other drivers in our business that are contributing. But obviously, I think, it's a $0.02 or $0.03 contribution that is no longer available to us. But again, gross margins improve and the long-term challenge with respect to maintaining even minimum margins has been resolved through the sale.

Quinn，如果以整季來看，大概會在900萬到1,100萬美元的區間。那離它未來會到的水準差很遠。而它的貢獻在於：如同我們在這裡談過的，那是一個毛利率下滑的業務。所以過去幾季的貢獻，並不代表未來若繼續留在我們帳上會呈現的狀況。因此再說一次，整體而言，從EPS角度看是微不足道的。我們業務中還有其他驅動因素在貢獻。但很明顯，我想那是每股約0.02到0.03美元的貢獻，現在我們不再擁有了。不過同樣地，毛利率會改善，而且透過出售，關於長期維持即使是最低毛利率的挑戰也已經解決。

Yes, actually, if I can build on that one a little bit on a longer basis. So Bob's comment is spot on for the next quarter. So I think, one of the beauties of this move to exit is we're falling back on a chipset business. It actually allows with our supply chain partners a better cost structure to our TOSA customers. So there's the opportunity to make it accretive as they can take back share and actually expand the business and expand beyond LR4. So it ends up a very cost-effective supply chain, frankly, is what we had already set up for our CWDM4 business, so it can actually end up, in the medium term to longer term, quite accretive.

是的，其實如果我可以在更長期的角度再補充一點。Bob對下一季的評論非常到位。所以我想，這次退出的一個好處是，我們回到晶片組（chipset）業務。這其實讓我們能與供應鏈夥伴一起，為我們的TOSA客戶提供更好的成本結構。因此存在讓它變成增益（accretive）的機會，因為他們可以拿回市占，並且實際擴大業務、擴展到LR4以外。所以最終會形成一個非常具成本效益的供應鏈；坦白說，這正是我們先前為CWDM4業務建立的架構，因此在中期到長期其實可能相當具增益性。

Got it. And then, you guys have done nice job of enabling a growing number of 100-gig ports over the last couple of years. Of the 3 million you've enabled here in the first half of fiscal '18, can you give us some sense what your laser attach is? Is that in the double-digit percentage? Is it higher than that? Any kind of update? Can you provide any update?

了解。另外，你們過去幾年在推動越來越多的100G埠方面做得很好。在你們於2018會計年度上半年所支援的300萬個之中，能否讓我們了解一下你們的雷射搭載率（laser attach）是多少？是在兩位數百分比嗎？還是更高？有任何更新嗎？能否提供一些更新？

Yes. I'd say it's still very much skewed towards the analog side of the business. What's happened with our 25-gig lasers is those are the new products we referred to where we're on the process of yield improvement. And until we get things yielding such that they deliver better revenue, then other things that we could fill our factories with, we make sure we supply our strategic customers, the strategic cloud customers. The LR4 business, for instance, was all based upon our lasers, so they ship. But don't have a particular religion towards shipping data center as opposed to PON. Frankly, our religion is about delivering maximum EPS to our investors short term.

是的。我會說目前仍然非常偏向業務的類比端。我們的25G雷射所發生的情況是：那是我們提到的新產品，我們正在進行良率改善。在我們把良率提升到能帶來更好收入之前，相較於其他可以用來填滿工廠產能的產品，我們會確保先供應我們的策略客戶，也就是策略性的雲端客戶。例如LR4業務完全是基於我們的雷射，所以它們會出貨。但我們並沒有特別偏好出貨資料中心而不是PON。坦白說，我們的信條是短期內為投資人帶來最大的EPS。

Great. And then, just quickly, Bob, can you give us a sense what the $9 million written-off for the ZTE write-down, was that just inventory that was custom ports to ZTE and perhaps not shippable to other customers? Or is it something else?

很好。再快速問一下，Bob，能否讓我們了解一下針對中興（ZTE）減記所沖銷的900萬美元，那只是為ZTE客製的埠口庫存、可能無法出貨給其他客戶嗎？還是其他原因？

A portion, a small portion, about 1/3 of it, was more or less custom identified inventory that we know is coming back from distributors in the channel. The largest portion, approximately half the number, is a capitalization of a custom ASIC mask cost that, under the rules here, we would match cost through amortization, the mask cost against future production when we go into production usually a few months away from initial mask, final mask set conclusion. So without the ability to export, that custom ASIC is a dead product.

其中一部分、很小的一部分，大約三分之一，是或多或少屬於我們確認會從通路的經銷商退回的、可辨識的客製化庫存。最大的一部分，大約占一半左右，是一項客製ASIC光罩（mask）成本的資本化；依照這裡的會計規則，我們通常會在進入量產時，透過攤銷把該光罩成本與未來生產相配比，而量產通常在初始光罩到最終光罩定案後的幾個月。因此在無法出口的情況下，那個客製ASIC就成了無法銷售的產品。

Our next question comes from Harsh Kumar with Piper Jaffray.

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

First of all, congratulations. Looks like business is turning good trends. John, if I could ask you, your revenue rise in the June quarter over the March quarter, is there any way for us to think about how it breaks down between your 3 different categories of business? And I've got 1 or 2 follow-ups.

首先，恭喜。看起來業務正朝著良好的趨勢發展。John，如果我可以請教你，6 月季度相較於 3 月季度的營收成長，我們是否能以某種方式理解它在你們 3 個不同業務類別之間的拆分？我還有 1、2 個追問。

Yes. So all 3 reported segments are up. From what we anticipate, continued strong growth in data center, continued recovery in telecom, also modest increase sequentially in I&D. So it's pretty much across the board. So it's -- sorry, and that's once you back out the LR4.

是的。所以三個已揭露的部門都在成長。依我們的預期，資料中心持續強勁成長、電信持續復甦，另外 I&D 也有溫和的季增。所以基本上是全面性的。所以它是——抱歉，而且這是在把 LR4 的影響扣除之後。

Yes. So telecom is down, obviously. A $9 million to $10 million number is not apples-to-apples in terms of the previous quarter. If you back it out, telecom is up.

是的。所以電信顯然是下降的。9 百萬到 1,000 萬美元這個數字，與前一季相比並非同口徑（不是 apples-to-apples）。如果把它扣除，電信其實是上升的。

Understood. That's very helpful as a clarification. And then, I was intrigued by your comments on GaN on silicon, you mentioned, and I missed the last part of it, something about 3 production, either orders, or 3 customers that you have that have given you production-type orders. Would you clarify what you mean by that?

了解。這個釐清非常有幫助。另外，我對你提到的矽基 GaN（GaN on silicon）的評論很感興趣；你提到——我漏聽了最後一段——大概是關於 3 個量產、可能是訂單，或是你們有 3 個客戶給了你們量產型的訂單。你能釐清你所指的是什麼嗎？

Sure. So previous quarters, I've been reporting on early programs that we -- initial programs where we had received production wins. We've now received the volume production orders. If you remember, I was talking about they had to go through a sequence of preproduction builds. And so we've passed all those gates. Now we have the production on those first 3 programs. So that's vitally important because performing operationally was the last thing that we had to do. And we'll have to continue to perform. We always need to perform, obviously, operationally. So that's a big deal. I think the big shift this quarter was the response to the ST announcement exceeded, frankly, even my own expectations. I've long known supply chain issues are very, very important in that base station world as demand is quite volatile. So the ability to surge to meet demand is vitally important, and this is arguably the first GaN supply chain that can actually operate with the same scale, capacity, surge capability as LDMOS. So like I said in the scripted remarks, we're actually being sponsored now in top-down at the executive levels, 2 of the guys, very relevant guys who matter. So it's -- I think, we're off of the races at this point.

當然。在前幾個季度，我一直在報告一些早期專案——我們收到量產導入（production wins）的初期專案。我們現在已經收到量產的批量訂單（volume production orders）。如果你還記得，我之前提到它們必須經過一連串的量產前試產建置（preproduction builds）。而我們已經通過所有那些關卡。現在，這前三個專案已進入量產。這非常重要，因為在營運面達成表現是我們最後必須完成的一件事。而我們也必須持續把表現做好。當然，我們一直都需要在營運上有良好表現。所以這是一件大事。我認為本季最大的轉變是，市場對 ST 公告的反應坦白說甚至超出我自己的預期。我一直都知道，在基地台領域，供應鏈問題非常、非常重要，因為需求相當波動。因此，能夠快速拉升供應以滿足需求至關重要；而這可以說是第一條 GaN 供應鏈，實際上能以與 LDMOS 相同的規模、產能與快速擴產能力來運作。所以如我在事先準備的發言中所說，我們現在實際上在高層主管的自上而下支持下推進，其中有兩位非常關鍵、真正有影響力的人在支持。所以——我認為此刻我們已經正式起跑了。

And John, would you clarify when can we -- I know that base stations are expected to go down in the ground about the end of the year or early next year. Would you expect revenues by the September quarter? Or will it be in the December quarter, some starting revenues?

John，你能否釐清一下我們何時可以——我知道基地台預計會在今年底或明年初開始落地部署。你預期在 9 月季度就會有營收嗎？還是要到 12 月季度才會開始有一些營收？

Yes, it's this quarter. We've got the production orders. We're shipping. I mean, I want to set expectations though. We're guiding one quarter at a time. And 1, 2, 3 programs is a starting point. It's walking before you run. Where you really start piling up the revenue is when you start proliferating geometrically across programs at the guys who matter. And that's the role that the ST -- I called it a catalyst in the scripted remarks, to be able to proliferate across those programs and scale to meaningful penetration to be able to meaningfully contribute to growth. That will come with time and geometrically and quarter-by-quarter. So I don't any don't want anybody to think there's some tsunami of revenue that's impending, but there's no question that, progressively, quarter by quarter by quarter, over the coming quarters and years, the vision looks to be on track to be realized.

是的，就是這一季。我們已經拿到量產訂單。我們正在出貨。不過我想先設定一下大家的預期。我們一次只指引一個季度。而 1、2、3 個專案只是起點。這是先學走再學跑。真正開始把營收堆起來，是當你在那些關鍵客戶的各個專案之間，以幾何級數的方式擴散（proliferating geometrically）。而這就是 ST——我在事先準備的發言中稱之為催化劑（catalyst）——所扮演的角色：能夠在那些專案之間擴散，並擴大到有意義的滲透率，從而對成長做出實質貢獻。這需要時間，並會以幾何級數、逐季推進。所以我不希望任何人以為有什麼即將到來的營收海嘯，但毫無疑問地，在接下來的幾個季度與幾年裡，願景看起來會逐季、逐季、逐季地朝著實現的方向前進。

And not to compromise what John said, but we have, for the first time, shipped production orders.

另外，不想削弱 John 所說的，但我們是第一次出貨量產訂單。

And Bob, if I could sneak one for you, would you help us out with kind of what you're expecting for OpEx because I'm asking this because the LR4 business is now gone, and I'm curious how that impacts your revenue stream -- I'm sorry, OpEx stream for guide, June quarter?

Bob，如果我可以順便問你一個問題，你能否協助我們了解你對營業費用（OpEx）的預期？我之所以問，是因為 LR4 業務現在已經沒有了，我想知道這會如何影響你們的——抱歉，是 OpEx 的指引，6 月季度的部分？

Yes. So at midpoint, the OpEx would translate in total in, call it, $65 million to $66 million range. We do have -- continue to have a new product development and shipping product to variable material costs that is up this quarter. This goes back to last quarter's scripted comments and discussion of continuing to make investments in critical new product developments that are 1 quarter or 2 from turning on. So that's what drives the increase. There are some nuances in fixed cost that go up at this time of year. But generally, the increase is variable material cost.

是的。所以以中位數來看，OpEx 換算合計大約在 6,500 萬到 6,600 萬美元的區間。我們確實有——本季仍持續有新產品開發，以及出貨產品所對應的變動材料成本上升。這可追溯到上季事先準備的評論與討論：我們持續投資於關鍵的新產品開發，這些產品距離啟動（turning on）只剩 1 到 2 個季度。因此這就是增加的主因。每年這個時點固定成本也會有一些細微上升。但整體而言，增加主要來自變動材料成本。

Yes. So a good example of variable material is mask and wafers. So obviously, if you're going to scale these programs that I keep referring to, we need to be taping out, we need to delivering, and that shows up as OpEx, it's material cost.

是的。變動材料的一個好例子是光罩（mask）和晶圓（wafers）。所以很明顯地，如果你要擴大我一直提到的這些專案規模，我們需要進行流片（taping out），我們需要交付，而這會以 OpEx 的形式呈現——它是材料成本。

(Operator Instructions) Our next question comes from Mark Delaney with Goldman Sachs.

(接線員指示) 我們的下一個問題來自高盛（Goldman Sachs）的 Mark Delaney。

First question is on Huawei. I was hoping you could level with us on what the company's exposure is to Huawei at this point in time? And certainly, understand MACOM wouldn't have visibility on what sanctions, if any, would be put in place. But just given the news of potential sanctions there in addition to ZTE, curious if you think Huawei would be potentially pulling inventory ahead of time to mitigate against a potential sanction? Or do you think you're seeing that?

第一個問題是關於華為。我希望你們能坦白告訴我們，目前公司對華為的曝險程度是多少？當然，我理解 MACOM 不一定能掌握會實施哪些制裁（如果有的話）。但考量到除了中興（ZTE）之外，近期也有針對華為的潛在制裁消息，我想了解你是否認為華為可能會為了因應潛在制裁而提前拉貨、提前建立庫存？或者你覺得你們有看到這種情況嗎？

Yes. So let me answer your question directly and then I'll provide some additional color. So our business with Huawei now is less than 5% of sales. It's not unlike the level of exposure to ZTE. And the thing that's materially different from before the downturn a couple of years ago and now is where Huawei before internalized a lot of the production of TOSAs and transceivers and things, they now outsource those from an ecosystem of people that we sell to who serve as Huawei in the past ZTE, fiber home location and (inaudible) so on. It's much more of a distributed business, much healthier condition than there was. So I think our degree of exposure is materially different than it used to be. But let me provide some color on the Huawei situation. I would caution people not to lead to the same denial of export that ZTE got. My interpretation is what they announced leads me to believe that there might've been a bad actor that made a bad transaction to the bad guys, which would not necessarily lead to the same kind of denial that ZTE was. In ZTE, I think there were 35 mid-level managers and 4 executives that were involved, which implies a much broader footprint within the company. So that's the reason why I think they got the denial. There's no question that trade wars and export controls are not a good thing, but Huawei is profoundly -- they're a multicultural company that does a lot of business internationally, and they take their reputation very seriously, not that ZTE doesn't, but it's much more of a local Chinese supplier. So I would fully expect that Huawei would be complying with everything necessary to clean their name. And if there was a bad actor, they would be taking action where it seems that ZTE did not.

是的。我先直接回答你的問題，然後再補充一些背景說明。我們目前與華為的業務占銷售額不到 5%。這與我們對中興的曝險程度差不多。而與幾年前景氣下行之前相比、以及現在相比，實質上不同的是：過去華為在 TOSA、收發器等許多產品上有相當多的內製；但現在他們改為從一個生態系中外包採購，而我們是賣給這些供應商，這些供應商過去也服務華為、以及中興、光纖到戶（fiber home）相關（聽不清）等等。這變成更分散的業務型態，整體狀況比以前健康得多。所以我認為我們的曝險程度與過去相比已經有實質差異。不過我再補充一些關於華為情況的背景。我會提醒大家，不要直接推導成會出現像中興那樣的出口禁令。依我的解讀，他們所宣布的內容讓我相信，可能是有個別不當人員做了不當交易，把東西賣給了不該賣的對象；但這未必會導致像中興那種同等程度的禁令。在中興的案例中，我記得有 35 位中階主管與 4 位高階主管涉入，這意味著在公司內部牽涉面更廣。所以這也是我認為他們會被祭出禁令的原因。毫無疑問，貿易戰與出口管制都不是好事；但華為是一家高度國際化、具多元文化的公司，在全球做很多生意，也非常重視自身聲譽——並不是說中興不重視，但中興更像是一家本地的中國供應商。因此我完全預期華為會遵循所有必要要求來澄清名譽。而如果確實有不當人員，他們也會採取行動；相較之下，中興似乎並沒有這麼做。

That's helpful. A quick follow-up on the prior OpEx question. I understood the guidance, Bob, you gave for OpEx next quarter. I'm just curious, as I start thinking about September, is there a step down in OpEx once, assuming the module sale goes through and maybe the material cost normalize?

這很有幫助。針對先前 OpEx（營業費用）問題的快速追問。Bob，我理解你對下季 OpEx 的指引。我只是好奇，當我開始思考 9 月時，假設模組銷售完成、且材料成本可能回歸正常，OpEx 會不會出現一個下台階式的下降？

I don't understand the question on modules. We don't make and sell modules.

我不太理解你關於模組的問題。我們不生產也不銷售模組。

Sorry, the LR4. Yes, sorry. The LR4 sale.

抱歉，是指 LR4。對，抱歉。LR4 的出售。

Yes. So I repeat that much of the LR4 cost in our P&L was direct cost related to the manufacturing and production side, so that goes through COGS more so. There's a couple of small amounts of SG&A that go away, but most of the direct costs are part of the manufacturing process, so there is some fluctuation in the material cost we have. Again, I would, at this point in time, without giving forward guidance 2 quarters, just the 1, I would say that the model might increment up slightly.

是的。我再重申一次：我們損益表（P&L）中 LR4 的大部分成本是與製造與生產端相關的直接成本，因此主要是走 COGS（銷貨成本）。有少量的 SG&A（銷售、一般及行政費用）會消失，但大多數直接成本屬於製造流程的一部分，所以我們的材料成本會有一些波動。再次強調，就目前而言，在不提供往後兩季的前瞻指引、只談一季的情況下，我會說模型可能會小幅上升。

Yes, so COGS is materially reduced in the transaction. One thing I'd emphasize is we actually retained the design competence. the design team because it allows us to do production designs to be able to enable these white box transceiver guys. So there's not a material improvement in OpEx related to that transaction. It's on the COGS side.

是的，所以在這筆交易中，COGS 會實質降低。我想強調的一點是：我們其實保留了設計能力，也就是設計團隊，因為這讓我們能做生產設計，以便賦能這些白牌（white box）收發器廠商。因此，與這筆交易相關的 OpEx 並不會有實質改善。改善主要在 COGS 端。

Our next question comes from Mark Kelleher with D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Mark Kelleher。

I wanted to check on the PON market a little bit. Been a great recovery there. I know the demand has outstripped your ability to supply recently. Can you give us an update on your efforts to bring that into balance?

我想稍微確認一下 PON 市場的狀況。那邊復甦得很不錯。我知道最近需求已經超過你們的供應能力。你能否更新一下你們為了讓供需回到平衡所做的努力？

Yes. I mean, we're doing everything we can to scale production, but the PON lasers are actually fully mature. So it's not an issue of yield improvement, those are not at full maturity yields, so that's more of an issue. The yield improvement is more on the new products with 25 gig. But -- I mean, we're bringing up new etch in our etched facets. We have to etch wafers to produce lasers, so there's that. We have final test. We're expanding capacity, so between 2.5, 10 and 25-gig lasers, looks like we're sold out for the foreseeable future, which is a good thing. The bad thing is the people who we can't supply aren't necessarily real happy. But you're right, the PON market came back strong. I reported that as far back as November. I actually saw some interesting report that shows the total units on the client side of PON back to 80% of what was previously the peak 2, 3 years ago. And that's up from being 65% down year-on-year a year ago. So if you do the math, that's more than 100% growth year-on-year. That was after a good, solid start of the year last year and then flatlined. So it was -- they drained all the inventories, and now it's back on hard. And we'll be supplying every unit that we can possibly supply as long as they pay for it.

是的。我的意思是，我們正盡一切所能擴大產能，但 PON 雷射其實已經完全成熟。所以這不是良率改善的問題；那些產品的良率已經在成熟水準，反而不是那種尚未成熟、需要拉升良率的狀態，所以問題更多在其他面向。良率改善主要是在 25G 的新產品上。不過——我們正在把新的蝕刻（etch）導入到我們的蝕刻端面（etched facets）製程。我們必須蝕刻晶圓才能生產雷射，所以有這一塊。另外還有最終測試（final test）。我們正在擴充產能，因此在 2.5G、10G 與 25G 雷射之間，看起來在可預見的未來我們都會是滿載售罄，這是好事。壞處是，我們無法供貨的那些客戶不見得會很開心。但你說得對，PON 市場強勢回來了。我早在 11 月就回報過這點。我還看到一份有趣的報告顯示，PON 客戶端的總出貨量已回到先前 2、3 年前高峰的 80%。而一年前同比還是下滑 65%。所以如果你算一下，這代表同比成長超過 100%。那是在去年年初有一個不錯、扎實的開局之後，接著就持平停滯。所以——他們把庫存都消化完了，現在又強勢回來。只要他們願意付錢，我們會盡可能供應我們能供應的每一個單位。

Okay. And then, just -- I just want to go back to the data center opportunity. I know you're working with some contract manufacturers, with some manufacturing partners. Is that what you're talking about with your white box opportunity with LR4s? Or can you give us an update on what you expect the data center business to do with those partners?

好的。然後——我想回到資料中心的機會。我知道你們正與一些代工廠、製造合作夥伴合作。你所說的 LR4 白牌（white box）機會，是指這個嗎？或者你能否更新一下，對於與這些夥伴合作的資料中心業務，你們預期會有什麼進展？

Yes. So I mean, you're used to the usual white box term. I mean, now, they're looking to reach to transceiver manufacturers, low-cost manufacturers that we enable for 100-gig transceivers, CWDM4 and beyond. So the interesting thing, this development this year or this quarter was the 5G telecom carriers are also assessing the same supply chain, so they would go straight to the manufacturers to source transceivers. So it's just they're low-cost, very high-volume manufacturers of optical assemblies and modules. So it's -- and the cloud guys, that's what it's all about. I mean, the thing that we learned in OFC is the cost structure that they have, it's a very large part of their cost of their data centers at this point. So it's very price-sensitive and getting the most cost-effective supply chain is a big deal for them.

是的。所以我的意思是，你已經熟悉一般所說的白牌（white box）這個詞。現在，他們希望直接接觸收發器製造商、低成本製造商；我們為其提供 100G 收發器（CWDM4 及更高階）的關鍵能力。所以今年或這一季有趣的發展是：5G 電信營運商也在評估同一條供應鏈，因此他們會直接向製造商採購收發器。所以這些就是低成本、超高產量的光學組件與模組製造商。所以——而雲端業者關注的就是這件事。我的意思是，我們在 OFC 學到的是，他們的成本結構中，這部分已經占其資料中心成本非常大的一塊。因此對價格非常敏感，取得最具成本效益的供應鏈對他們而言非常重要。

Our next question comes from Tore Svanberg with Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

John, could you put a little more framework on the recovery you're seeing in long-haul and Metro? Would that business be up in Q2 and then kind of accelerate from there? Any framework you could give would be helpful.

John，你能否就你在長途（long-haul）與都會網（Metro）所看到的復甦，提供更完整的架構說明？這塊業務會在第二季回升，然後從那之後加速嗎？任何你能提供的框架都會很有幫助。

Yes. The progression, I mean, that was one of the most precipitous declines that we saw last year, first PON and then Metro/long-haul stuff. The way -- my interpretation with our Chinese customers is they shipped and burned off the inventories using demand outside of China, but the China demand has not yet materialized, certainly in our revenue and their revenue. That said, we were told to expect after Chinese New Year that the China -- the carriers would begin issuing tenders and awarding business. Sure enough, a few weeks back, we saw that the China Mobile awarded the Nokia Shanghai Bell as a pole position for, I think, it was 13 cities and 2 provinces. So it looks to be -- and our customers are telling us, expect more to come. Now our backlog had been building. We didn't realize who it was for. But with Nokia, it was building in anticipation of that. I would expect that as those tenders -- the second half of the year would probably be back in a healthy state. I think, June is probably a transitional quarter for that. But I'd describe it, over in China right now, behaviors are getting back to normal where they were fairly dramatically changed through the second half of last year. The order patterns are returning to normal and so on. But I think it's too early to call it for June.

是的。就進展而言，我的意思是，那是我們去年看到最陡峭的下滑之一，先是 PON，接著是 Metro/長途相關。依我對我們中國客戶的解讀，他們是利用中國以外的需求來出貨並消化庫存，但中國端的需求尚未出現，至少在我們的營收以及他們的營收上都還沒反映出來。話雖如此，我們被告知在農曆新年後，中國——電信營運商會開始發標並授標。果不其然，幾週前我們看到中國移動將 Nokia Shanghai Bell 授予優先地位（pole position），我想是涵蓋 13 個城市與 2 個省份。所以看起來——而我們的客戶也告訴我們，後續還會有更多。現在我們的在手訂單（backlog）一直在累積。我們當時不知道是為了誰。但就 Nokia 而言，那是在預期該案之下而累積的。我預期隨著那些標案——今年下半年大概會回到健康的狀態。我認為 6 月可能是一個過渡性的季度。但我會這樣形容：目前在中國，那些行為模式正回到正常，因為去年下半年它們曾經出現相當劇烈的改變。下單模式正在回到正常，等等。但我認為現在就對 6 月做定論還太早。

That's helpful. My follow-up question is on L-PIC. Could give us an update on your capacity there, I don't know, either by millions of units of ports that you can serve or how much revenue you can get out of it? Any framework on L-PIC capacity would be a great thing.

這很有幫助。我的追問是關於 L-PIC。你能否更新一下你們那邊的產能？我不確定是以可供應的埠數（ports）百萬單位來衡量，或是它能帶來多少營收？任何關於 L-PIC 產能的框架都會很棒。

Sure. So again, one of the policies we're trying to go back to guiding to one quarter at a time. So I'll tell you where we are and where we're headed. So at OFC, there were 2 high-volume transceiver guys who were demonstrating production QSFP28 modules. They're out securing business with cloud service providers and network OEMs, negotiating commercial terms and so on. We're in no control of that so we can't call that a win or not. So it's too early to call in terms of calling revenue. Again, we're going to be very cautious until we see orders and forecasts from end customers. We want to be cautious on these things. I would say, in general, the L-PIC platform is going to scale with global foundries. I think it was transparent last quarter. They're the source for our silicon photonics. We're bringing up the L-PIC process in and with global foundries. I think, ultimately, that's going to gate the transition from discrete to integrated L-PIC designs. And last comment I'd make is we set up these reference designs at both the subassembly and a module level such that requalification of the module is not necessary, so it's kind of greasing the skids. And whether it's a discrete subassembly or L-PIC-based one, it's more quickly and readily adopted. And frankly, it's a cost-reduction and a capacity scale for the cloud service provider. So we'll guide that one quarter at a time, but it's not a June production on the L-PIC.

當然。所以再說一次，我們正嘗試回到一次只指引一個季度的政策。因此我會告訴你我們目前的狀況以及接下來的方向。在 OFC 上，有兩家高出貨量的收發器廠商展示了量產的 QSFP28 模組。他們正在與雲端服務供應商與網通 OEM 洽談、爭取案子，協商商業條款等等。我們無法控制那部分，所以我們不能說那是贏單或不是。因此就營收而言，現在還太早下結論。同樣地，在我們看到終端客戶的訂單與預測之前，我們會非常保守。我們希望在這些事情上保持謹慎。我會說，整體而言，L-PIC 平台會隨著 GlobalFoundries（格羅方德）擴產而擴大規模。我想上個季度這點已經很清楚。他們是我們矽光子（silicon photonics）的來源。我們正在 GlobalFoundries 內部並與其合作導入（bring up）L-PIC 製程。我認為，最終這將成為從分立（discrete）走向整合式 L-PIC 設計轉換的關鍵門檻。我最後想補充的是，我們在次組裝（subassembly）與模組（module）層級都建立了這些參考設計，使得不需要重新認證模組，因此有點像是在加速推進。不論是分立式次組裝或是以 L-PIC 為基礎的方案，都能更快、更容易被採用。坦白說，這對雲端服務供應商而言是降成本與擴產能。所以我們會一次指引一個季度，但 L-PIC 不會在 6 月量產。

Your next question comes from Harlan Sur with JPMorgan.

下一個問題來自 JPMorgan 的 Harlan Sur。

It's great to see the inflection in the business here. On the move to exit the LR4 optical subassembly business, are you guys exiting the entire TOSA, ROSA business for both telecom and data center applications? Because -- I apologize if I misunderstood, but I thought TOSA and ROSA capabilities were key to driving your overall strategy for sort of low-cost profile for your data center products as well. So for example, L-PIC, 100-gig, CWDM combined with your TOSA, ROSA capabilities, or even clear upcoming L-PIC-based 400-gig module solutions.

很高興看到你們的業務在這裡出現拐點。關於退出 LR4 光學次組裝業務的動作，你們是否要退出涵蓋電信與資料中心應用的整個 TOSA、ROSA 業務？因為——如果我誤解了先說抱歉，但我原本以為 TOSA 與 ROSA 的能力是推動你們整體策略的關鍵，用來打造資料中心產品的低成本結構。例如，L-PIC、100G、CWDM 結合你們的 TOSA、ROSA 能力，甚至是即將推出、以 L-PIC 為基礎的 400G 模組解決方案。

So it's a very, very good question. And let me start by saying yes and no. So you have to separate the issue of delivering production designs and qualifications separate from a transactional sale of the manufacturing and sale of the subassembly. So on the former, we're not exiting. We have the full capability -- we'll retain the full capability to do full production designs of TOSAs and ROSAs, which is vitally important because that's how you enable these white box guys and low-cost supply chains. But the latter -- transactionally selling the subassembly is unnecessary. It's arguably dilutive from a gross margin percentage standpoint, and we found out the hard way, having continued the -- the difference with LR4 and other things is when we acquired FiBest, there was a production run rate LR4 business, so we never stopped doing it, and we found out the hard way that sustaining 60% gross margins in that kind of business or close to it is, in retrospect, not possible. We improved the gross margins but when the going got tough and things got very competitive, things collapsed back. Now I can tell you, in that same model with current market pricing, selling the chipset into a low-cost supply chain, we can meet or beat our 60% gross margin model. That's the magic of this thing. Now we had already teed up our CWDM4 strategy to be in that supply chain model. We just moved the LR4 business to the same one.

這是一個非常、非常好的問題。我先從「是」與「不是」開始說。你必須把「交付量產設計與認證」這件事，與「以交易方式製造並銷售次組裝」這件事分開來看。就前者而言，我們不會退出。我們具備完整能力——我們會保留完整能力來做 TOSA 與 ROSA 的量產設計，這非常重要，因為這正是你如何賦能這些白牌（white box）廠商與低成本供應鏈。但後者——以交易方式去賣次組裝其實沒有必要。從毛利率百分比的角度看，它可以說是稀釋（dilutive）的；而且我們是吃過苦頭才學到：LR4 與其他產品的差別在於，當我們收購 FiBest 時，LR4 業務本來就有量產的出貨節奏（production run rate），所以我們從未停止做它；我們也因此痛苦地發現，要在那種業務中維持 60% 或接近 60% 的毛利率，事後回頭看是不可能的。我們曾改善毛利率，但當情勢變得艱難、競爭非常激烈時，毛利又崩回去。現在我可以告訴你，在同樣的模式下、以目前的市場定價，把晶片組（chipset）賣進低成本供應鏈，我們可以達到或超過我們 60% 的毛利率模型。這就是這件事的魔力所在。我們原本就已經把 CWDM4 策略安排在那個供應鏈模式之中。我們只是把 LR4 業務也移到同一個模式。

And sort of thinking about kind of next-generation Long-haul/Metro, I saw you guys at OFC, you guys were showcasing your 45 GBaud, 64 GBaud solutions, which should drive kind of next-wave 200-gig, 400-gig Metro. Are these products going to start to contribute to the sequential revenue growth trends as we progress through the year? Because we are hearing about sort of initial deployments of at least 200-gig Metro.

再談到下一代長途/都會網，我在 OFC 看到你們展示了 45 GBaud、64 GBaud 的解決方案，這應該會帶動下一波 200G、400G 的都會網。隨著今年進展，這些產品是否會開始對營收的逐季成長趨勢做出貢獻？因為我們聽到至少 200G 都會網已經開始初期部署。

Yes, I would say it's not going to drive growth. I would say the Metro/Long-haul business that we have and some of our peers have is somewhat mature. We don't see it as a growth business. It's a mix. Mix over some of the higher higher-performance products. The overall SAM for Metro/Long-haul is not necessarily going to expand. Where the growth is in that telecom segment as it relates to the carrier purchases is much more of a shift towards the fronthaul, mid-haul, backhaul optical transport network -- I'm sorry, backhaul is more of a coherent stuff that you're referring to. And Nokia Shanghai Bell is a perfect example of that 5G Metro buildout. But -- I mean, materially speaking, you look at the unit volumes, they're consistent with traditional Metro expectations. The growth, if you may, is in the fronthaul, mid-haul, which would be 25 and 100-gig, shorter range, 2-kilometer, 10-kilometer type stuff.

是的，我會說這不會帶動成長。我會說我們以及一些同業所擁有的都會/長途（Metro/Long-haul）業務已相對成熟。我們不把它視為成長型業務。它是一種組合。在一些更高、更高效能的產品之間的組合。整體而言，都會/長途的SAM（可服務市場）不一定會擴大。電信領域的成長、就營運商採購而言，更多是轉向前傳（fronthaul）、中傳（mid-haul）、回傳（backhaul）的光傳輸網路——抱歉，你所指的回傳更多是相干（coherent）那一類的東西。而上海貝爾（Nokia Shanghai Bell）就是那種5G都會建設擴張的完美例子。不過——我的意思是，從實質角度來看，你看單位出貨量，它們與傳統都會網的預期一致。如果要說成長的話，是在前傳、中傳，也就是25G與100G、較短距離、2公里、10公里這類的產品。

Our next question comes from Tim Savageaux with Northland Capital.

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

I wanted to follow back up on the PON market, maybe leveraging off your answer to a previous question about units being back toward peak levels. I think you guys have called out in the past is that PON laser business peaks for you maybe in the $25 million, $30 million range on a quarterly basis, several quarters ago. As you guys talk about the recovery here, I wonder if you could maybe measure your progress relative to that previous peak in terms of what you saw in the current quarter and, eventually, where you expect the PON laser business to return to from a revenue standpoint and whether you might be able to add any additional color on previous peaks for wireless backhaul, fronthaul and where you stand now relative to those?

我想再追問一下PON市場，或許延伸你先前對於出貨量回到接近高峰水準的回答。我記得你們過去曾提到，你們的PON雷射業務在幾個季度前的高峰，單季大概在2,500萬到3,000萬美元的區間。當你們談到這次復甦時，我想請你們能否以目前這一季所看到的情況，衡量一下相對於先前高峰的進展；以及最終從營收角度，你們預期PON雷射業務會回到什麼水準，並且是否也能就無線回傳（backhaul）、前傳（fronthaul）過去的高峰補充一些資訊，以及你們目前相對於那些高峰的位置？

Sure. So providing any kind of forward guidance beyond the next quarter is what we try to avoid. Let me talk about the demand to get to the spirit of the question. So from the numbers we've seen this year, they're getting back to 80% of the unit volume on the client side of the previous peak. At that previous -- plus ASPs have come back at a lower level, as you would naturally expect going through a downturn. So we're not suggesting we'll get back to the peak. The other thing from a revenue as opposed to a demand standpoint, we're in a supply-constrained environment. So for instance, as we improve the yields in 25-gig lasers selling into fronthaul or data center, we will just shift that capacity and shift over away from PON. So we're not religiously linked at the hip to PON or anything else. I mean, we're going to optimize where our capacity is best implemented. So we've got be careful about -- PON is a nice demand right now. It's filling our lines and filling our capacity, but that may go up or down depending on how other parts of the portfolio goes. I would say the other interesting thing with PON that's going on is increasing shift towards 10-gig PON, both 10G-EPON and XG-PON. 10-gig EPON is actually asymmetric, 10 gig downstream, 2.5 gig upstream. So that's kind of a hybrid. We sell 2.5-gig lasers into the client side. So lots of very interesting trends. PON is going to end up very attractive in many ways and not just for our laser business, which is traditionally what we did in PON. We got a very strong position with the laser drivers and TIAs there as well. So it's a -- it will be moving targets over the coming quarters.

當然。所以，除了下一季之外，我們會盡量避免提供任何形式的前瞻指引。我先談談需求，以回應問題的核心。就我們今年看到的數字而言，客戶端的單位出貨量已回到先前高峰的大約80%。而且相較於先前——ASP（平均售價）也回到較低水準，這在景氣下行後是很自然會發生的。所以我們並不是在暗示會回到高峰。另外，從營收而非需求的角度來看，我們目前處於供給受限的環境。例如，當我們提升25G雷射（銷往前傳或資料中心）的良率時，我們就會把那部分產能移轉、從PON那邊挪過來。所以我們並不是和PON或其他任何產品「綁在一起」。我的意思是，我們會最佳化產能應該投放在哪裡最合適。因此我們必須小心——PON目前的需求不錯。它讓我們的產線與產能保持滿載，但這可能會隨著產品組合中其他部分的變化而上升或下降。我會說，PON另一個有趣的趨勢是，正加速轉向10G PON，包括10G-EPON與XG-PON。10G EPON其實是非對稱的，下行10G、上行2.5G。所以那算是一種混合型態。我們在客戶端會銷售2.5G雷射。所以有很多非常有趣的趨勢。PON最終在很多方面都會非常有吸引力，而且不僅僅是對我們的雷射業務——那是我們在PON傳統上所做的。我們在那裡的雷射驅動器（laser drivers）與TIA（跨阻放大器）也有非常強的地位。所以——在接下來幾個季度，這些都會是持續變動的目標。

Great. And if I could follow-up just briefly, I mean, if you look at, I guess, about 8 million or so in sequential growth in telecom last quarter and some amount, forecasted apples-to-apples ex LR4 for the current quarter, is it fair to say that most, if not all of that, is PON and kind of wireless, if you will, backhaul, fronthaul-driven in both periods? Are you seeing any growth or developments on the Metro/Long-haul side that are notable?

了解。如果我可以再簡短追問一下：如果你看上季電信業務約有800萬美元左右的季增，以及本季在排除LR4後、以同口徑（apples-to-apples）來看也有某種程度的成長預測，是否可以說這些成長大多數、甚至全部，兩個期間都是由PON以及某種程度上由無線（如果你這麼說的話）的回傳、前傳所帶動？在都會/長途那一端，你們有看到任何值得注意的成長或進展嗎？

Yes, I would say backward, the first thing that we saw -- actually, the first thing we saw the decline last year was in PON. The first time we saw recovery was November when I was in China. And just it came back full on now. You can't instantly start shipping product that you haven't been building. So we had partial quarter of contribution but we'll have more. On the Metro/Long-haul side, I think, we have not yet seen the China demands recover. Certainly, we see the deployments. We see the orders building in our backlog in support of that. But I would say that is the last pocket that we're waiting to see over the June quarter, September quarter. I think, as you get into the back half of the year, given the tea leaves and the things that we're told, that's when you would see that recover to a more normal state. I think the other twist on it though, too, is we talked about last quarter about the shift from Long Haul towards Metro, you look at it from a carrier standpoint, so you shift from Long Haul towards Metro towards the Metro being backhaul and now mid-haul at 100-gig and fronthaul at 25-gig, which is the other dimension when I talk about recovery in fronthaul and backhaul, a lot of the expedites that we're getting are 25-gig lasers for fronthaul. So I think carrier spending in China is actually turning on pretty well. It's just a different mix in this infrastructure buildout.

是的，我會說回頭看，去年我們最先看到下滑的其實是PON。我們第一次看到復甦是在我11月去中國的時候。而現在它已經全面回來了。你不可能立刻開始出貨你之前沒有在生產的產品。所以我們那一季只有部分季度的貢獻，但之後會更多。在都會/長途方面，我認為我們還沒有看到中國需求回升。當然，我們看到部署在進行。我們也看到為了支援這些部署，訂單在我們的積壓訂單（backlog）中累積。但我會說，那是我們仍在等待看到的最後一個區塊，可能會落在6月季度、9月季度。我認為，進入下半年，根據一些跡象以及我們被告知的情況，那時你會看到它回到較正常的狀態。不過另外一個轉折點是，我們上季談到從長途（Long Haul）轉向都會（Metro）的趨勢；你從營運商角度來看，就是從長途轉向都會，而都會又是回傳，現在還有100G的中傳，以及25G的前傳——這也是我在談前傳與回傳復甦時的另一個面向：我們收到的許多加急（expedites）其實是用於前傳的25G雷射。所以我認為中國的營運商支出其實啟動得相當不錯。只是這次基礎建設擴建的組合不同。

(Operator Instructions) Our next question comes from Mark Lipacis with Jefferies.

（接線員指示）我們的下一個問題來自Jefferies的Mark Lipacis。

John, in your script, you said demand in excess capacity on the data center side. Does that suggest elevated CapEx for the rest of 2018? How should we be thinking about CapEx? And the second part of that is given you had $195 million quarter last year, does that suggest you have excess capacity in other places and that you can meet upside quickly should it manifest?

John，在你的講稿中，你提到資料中心端的需求超過產能。這是否意味著2018年剩餘時間的資本支出（CapEx）會偏高？我們應該如何看待CapEx？第二個部分是，鑑於你們去年有一季做到1.95億美元，這是否表示你們在其他地方有多餘產能，若真的出現上行需求，你們可以很快滿足？

So very good questions. So the way we run our business, the way any semiconductor company does is products and business lines and business units. I would say, our HPA, high-performance analog business, which is sold over to data centers, has been struggling to meet unit demand, not in a native sense shifts. When you're talking about the kind of percentage increases just getting wafers allocated from suppliers like TowerJazz and so on, it's nontrivial. So that's -- when you talk about that kind of growth in data centers, the analog business stays -- is trying to stay on top. But the other thing is we run a laser business. So getting the yields up to be able to get the unit output and factory productivity to the levels that we need to see, and that is where our manic focus is right now in terms of scaling the data center business. So continued growth in analog. You've got the lasers. At some point, L-PICs will start contributing in a more and more material way. At the same time, in 2019, you'll start to see PHYs, PAM4 stuff. That becomes more salient in 2019. So it's layers of growth beyond the analog. Do you want to address the CapEx part?

所以這些問題都非常好。我們經營業務的方式，以及任何半導體公司運作的方式，都是以產品、事業線與事業單位來劃分。我會說，我們的 HPA（高效能類比）業務，銷售到資料中心，一直在努力滿足單位需求，並不是因為本質上的需求轉移。當你談到那種百分比的成長幅度、僅僅是從像 TowerJazz 等供應商那裡取得晶圓配額，這並不容易。所以——當你談到資料中心那種成長時，類比業務一直在——努力跟上並保持領先。但另一件事是我們也經營雷射業務。因此，提高良率以達到我們需要看到的單位產出與工廠生產力水準，這正是我們目前在擴大資料中心業務規模方面最專注的重點。所以類比業務持續成長。你還有雷射。在某個時間點，L-PICs 會開始以越來越實質的方式貢獻。同時，在 2019 年，你會開始看到 PHY、PAM4 相關的東西。這在 2019 年會變得更為顯著。所以在類比之外，還有一層又一層的成長動能。你想談談資本支出（CapEx）的部分嗎？

Yes, the CapEx will be in the range, continue to be high as these CapEx investments are assisting in expanding capacity and some are unique to new products that are required to get them out the door to start with. So we will, this year, have an elevated CapEx level.

是的，資本支出將落在一個區間內，並且會持續維持在較高水準，因為這些資本支出投資有助於擴充產能，其中一些也針對新產品是獨特且必要的，讓我們一開始就能把產品順利出貨。因此，我們今年的資本支出水準會偏高。

Our next question comes from C.J. Muse with Evercore ISI.

下一個問題來自 Evercore ISI 的 C.J. Muse。

This is Sajal Dogra calling in for C.J. Muse. So I wanted to ask you if you're seeing any ASP pressure on any specific confidence, like drivers, TIAs, given the move to CWDM? And if any of these (inaudible) confidence have excess inventory right now?

我是 Sajal Dogra，代替 C.J. Muse 來電提問。我想問的是，隨著轉向 CWDM，你們是否在任何特定元件上看到 ASP（平均銷售價格）壓力，例如驅動器、TIA 等？以及這些（聽不清）元件目前是否有任何過剩庫存？

Good question. So we don't see any excess inventory anywhere and certainly in the data center stuff and PON area. I mean, people are living hand to mouth. I think, in the Metro/Long-haul, they're draining the last inventories from the downhaul -- downturn. In terms of ASP pressure, I would describe it this way, when you scale units from 0 to 1.6 million to 4 million to, I don't know, 7 million, 8 million, to -- on a path to 10 million, 20 million, naturally, the economics evolve. The cost of the transceiver evolves. There's price pressures, if you can call it that way. But if you do your job as a semiconductor company, I think, the guys running our high-performance analog business have done a fantastic job, you drive your cost structure consistent with that. So I mean, we've been able to maintain very attractive gross margins, at the same time, meeting the economic demands as this market have scaled. I think we're poised to do the same thing with lasers. We're poised to do it with everything else. So it's part and parcel from going to hundreds of thousands to millions to tens of millions. It would be naive to think that you're going to maintain the same kind of ASP and cost structure throughout time. So as it stands, we're doing a good job holding up gross margins in our data center business and we anticipate that to continue.

好問題。所以我們在任何地方都沒有看到過剩庫存，尤其是在資料中心產品與 PON 領域。我的意思是，大家都是手到口、以最低庫存運作。我認為在都會/長途（Metro/Long-haul）方面，他們正在消化上一輪下行——景氣下滑——時期留下的最後庫存。至於 ASP 壓力，我會這樣描述：當你把出貨量從 0 擴大到 160 萬、到 400 萬、到——我不知道——700 萬、800 萬，再到——朝 1,000 萬、2,000 萬的路徑前進時，經濟性自然會演變。收發器的成本也會演變。會有價格壓力，如果你要這樣稱呼的話。但如果你把半導體公司的本分做好，我認為負責我們高效能類比業務的團隊做得非常出色，你會推動成本結構與之相匹配。所以我的意思是，我們能夠在滿足這個市場規模化所帶來的經濟要求的同時，維持非常具吸引力的毛利率。我認為我們也已準備好在雷射上做到同樣的事。我們也準備好在其他所有項目上做到。所以這就是從數十萬到數百萬、再到數千萬的必然過程的一部分。如果你以為在整個期間都能維持同樣的 ASP 與成本結構，那就太天真了。所以就目前而言，我們在資料中心業務的毛利率維持得很好，而且我們預期這種情況會持續。

Our next question comes from Richard Shannon with Craig-Hallum.

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

Maybe just a couple of quick ones for Bob. Bob, you talked about your implied OpEx for the June quarter, which is a significant ramp up in the last 2 quarters. How should we think about the trajectory going forward? Is this going to be more of a modest growth? Or are we going to see this pretty aggressive ramp here for at least another quarter or 2?

也許給 Bob 兩個簡短的問題。Bob，你談到你對 6 月季度的隱含營運費用（OpEx），相較於前兩個季度有顯著的拉升。我們應該如何看待未來的走勢？這會是較為溫和的成長嗎？還是我們會在接下來至少一到兩個季度看到相當積極的拉升？

Yes. Again, without giving specific guidance by quarter, we'll do next quarter, I think the rate of increase will decline in forward quarters, but -- and again, some of these expenses are variable, so we could even have declines.

是的。同樣地，在不按季度提供具體指引的前提下——我們會在下個季度提供——我認為未來幾個季度的增幅會下降；但——而且再次強調，其中一些費用是變動性的，所以我們甚至可能出現下降。

And I'm currently showing no further questions at this time. I'd like to turn the call over to John Croteau for closing remarks.

我目前顯示此時沒有更多問題。我想把電話會議交回給 John Croteau 作結語。

Very good. So before closing out today's call, I want to mention that we'll be attending a number of investor events between now and midsummer, including Goldman Sachs Leveraged Finance Conference on May 10 in Rancho Palos Verdes California; Craig-Hallum's Institutional Investor Conference on May 30 in Minneapolis; and Stifel's Cross-sector Insight Conference on June 13 -- 11 to 13 in Boston. If you'd like to arrange a meeting at one of these upcoming events, please email us at ir@macom.com That concludes today's remarks. Operator, you may now disconnect the call.

很好。在結束今天的電話會議之前，我想提到，從現在到仲夏之間我們將參加多場投資人活動，包括：5 月 10 日在加州 Rancho Palos Verdes 舉行的高盛槓桿融資會議（Goldman Sachs Leveraged Finance Conference）；5 月 30 日在明尼阿波利斯舉行的 Craig-Hallum 機構投資人會議（Institutional Investor Conference）；以及 6 月 13 日——11 到 13 日——在波士頓舉行的 Stifel 跨產業洞察會議（Cross-sector Insight Conference）。如果你希望在上述即將到來的活動之一安排會面，請寄電子郵件至 ir@macom.com 與我們聯繫。以上為今天的發言。接線員，您現在可以中斷通話。

Ladies and gentlemen, this concludes today's conference. Thank for your participation and have a wonderful day.

各位女士、先生，今天的電話會議到此結束。感謝各位的參與，祝各位有美好的一天。