MACOM Technology Solutions Holdings, Inc. (MTSI) 2018 Q3 法說會逐字稿

Good afternoon, and welcome to MACOM's Fiscal Third Quarter 2018 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, July 31, 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 會計年度第三季財務業績電話會議。(接線員指示) 提醒各位，本次電話會議將於今天——2018 年 7 月 31 日（星期二）——進行錄音。現在我將把電話交給 MACOM 投資人關係副總裁 Steve Ferranti。Steve，請開始。

Thank you, operator. Good afternoon, everyone, and welcome to MACOM's Fiscal Third 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，接線員。各位下午好，歡迎參加 MACOM 2018 會計年度第三季財報電話會議。今天與我一同出席的有 MACOM 總裁暨執行長 John Croteau，以及資深副總裁暨財務長 Bob McMullan。

If you had 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.

如果各位尚未收到財報新聞稿，可至 MACOM 網站 www.macom.com 的「投資人關係」專區取得。

Before I turn the call over to John, I would 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. For more detailed discussions of the risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC, including its current report on Form 8-K filed today, its quarterly reports on Form 10-Q filed on February 17, 2018 and May 3, 2018 and its annual report on Form 10-K filed on November 15, 2017. Any forward-looking statements represent management's views only as of today, July 31, 2018, and MACOM assumes no obligation to update these statements in the future.

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，包含前瞻性陳述，而這些陳述受某些風險與不確定性影響。由於實際結果可能與今日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案》中關於前瞻性陳述的「安全港」保護。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、於 2018 年 2 月 17 日與 2018 年 5 月 3 日提交的 Form 10-Q 季度報告，以及於 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 7 月 31 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 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 the company's press release and related 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，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相關 Form 8-K（今日已向 SEC 提交），並可於 MACOM 網站的「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. And with that, I'll turn over the call to John, for his comments on the quarter.

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。接下來，我把電話交給 John，請他就本季發表評論。

Thanks, Steve. Welcome, everyone, and thanks for joining us today. I'll begin today's call with an overview of our third 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. I'll conclude today's prepared comments with guidance for the fiscal fourth quarter of 2018.

謝謝，Steve。歡迎各位，感謝今天加入我們。我將先概述我們 2018 會計年度第三季的業績，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，由他更詳細地說明我們的財務表現。最後，我將以 2018 會計年度第四季的財測作為今天事先準備發言的結語。

Jumping right into the numbers. Revenue for the fiscal third quarter was $145 million, with adjusted gross margin of 56% and adjusted earnings of $0.13 per diluted share. Overall, Q3 played out largely as expected, as we benefited from ongoing recovery in demand, following the cyclical downturn that impacted our end-markets over the course of calendar 2017.

直接進入數字。會計年度第三季營收為 1.45 億美元，經調整毛利率為 56%，經調整後稀釋每股盈餘為 0.13 美元。整體而言，第三季表現大致符合預期；在 2017 年曆年期間影響我們終端市場的景氣循環下行之後，我們受惠於需求持續復甦。

During Q3, we successfully exited the manufacturing and sales of the LR4 subassemblies. Our Q3 guidance range had incorporated certain assumptions related to the timing of the close of that transaction, with the midpoint of our guidance assuming a couple million in revenue from a partial quarter of OSA sales. Timing was such that we shipped only $400,000 of OSAs in Q3, which contributed to revenue coming in slightly below the midpoint of guidance, the gross margin coming in favorably toward the upper end of guidance.

在第三季期間，我們成功退出 LR4 次組件的製造與銷售。我們第三季財測區間已納入與該交易完成時點相關的若干假設；以財測中位數而言，假設來自部分季度 OSA 銷售的營收約數百萬美元。由於時點因素，我們第三季僅出貨 40 萬美元的 OSA，導致營收略低於財測中位數；但毛利率則有利地落在財測區間的上緣。

Overall, on a comparable basis, excluding the contribution of LR4 in Q2, Q3 revenue was up sequentially, and gross margin was up 200 basis points sequentially.

整體而言，在可比基礎上（排除第二季 LR4 的貢獻），第三季營收較前一季成長，毛利率較前一季提升 200 個基點。

Looking into the details of Q3. The Data Center revenue was $45.9 million, up 8% sequentially. Overall demand for 100-gig connectivity within data centers continues to be robust and is shaping up to remain strong through the second half of 2018. This trend is supported by a healthy CapEx environment among the leading North American cloud service providers. In total, hyperscale Data Center CapEx is expected to grow by 40% in 2018, building on a healthy 2017.

進一步看第三季的細節。資料中心營收為 4,590 萬美元，較前一季成長 8%。資料中心內部對 100G 連接的整體需求仍然強勁，且看來在 2018 年下半年仍將維持強勢。此趨勢受到北美主要雲端服務供應商健康的資本支出（CapEx）環境所支撐。整體而言，超大型（hyperscale）資料中心 CapEx 預期在 2018 年成長 40%，並延續 2017 年的良好表現。

Equally as important, this growth in capital investment is supported by corresponding growth in cloud services revenue, creating a virtuous demand cycle as more and more services migrate to cloud-based infrastructure. As a result, we believe we're still in the early innings of the long-upgrade cycle to 100-gig connectivity within cloud data centers.

同樣重要的是，這項資本投資成長也受到雲端服務營收相應成長的支撐；隨著愈來愈多服務遷移至雲端基礎設施，形成良性需求循環。因此，我們認為雲端資料中心升級至 100G 連接的長期升級循環仍處於早期階段。

Customer forecast project 2019 and 2020 to be strong growth years for CWDM, with the potential for overall unit demand to more than double in 2019, reaching volumes approaching 10 million units next year. We believe that we're well positioned to capitalize on this trend. In the coming quarters, we expect revenue from our 25-gig lasers, L-PICs and white-box transceiver solutions, for both CWDM4 and PAM-4, to layer in on top of our preeminent position in high-performance analog CDRs, drivers and TIAs across all connectivity standards.

客戶預測顯示 2019 與 2020 年將是 CWDM 的強勁成長年度，整體單位需求在 2019 年有機會超過倍增，明年出貨量可望接近 1,000 萬顆。我們相信公司已具備良好定位以掌握此一趨勢。在接下來幾季，我們預期來自 25G 雷射、L-PIC 以及白牌（white-box）收發器解決方案（涵蓋 CWDM4 與 PAM-4）的營收將逐步叠加；同時，我們在各連接標準下的高效能類比 CDR、驅動器與 TIA 方面仍維持領先地位。

I'm pleased to say that since our last earnings call, we've made tangible progress in yield improvements for our 25-gig lasers. Our team has worked diligently to establish process improvements that have enabled us to hit key yield thresholds for production readiness. Based on this progress, we are starting to execute a controlled production ramp, operationally scaling our 25-gig EFT lasers into high-volume production in our Lowell fab.

我很高興地表示，自上次財報電話會議以來，我們在 25G 雷射的良率改善方面已取得具體進展。我們團隊持續努力建立製程改善，使我們能達到量產就緒所需的關鍵良率門檻。基於這些進展，我們開始執行受控的量產爬坡，在營運上將 25G EFT 雷射擴大至位於 Lowell 晶圓廠的高產量生產。

In parallel, we're continuing to invest in capital equipment for etching lasers and testing final products to expand overall equipment capacity across 2.5, 10 and 25G lasers. At a high level, 25G lasers remain a major choke point within the industry for fulfilling the growing demand for high-speed, optical connectivity.

同時，我們持續投資資本設備，用於雷射蝕刻與最終產品測試，以擴充 2.5G、10G 與 25G 雷射的整體設備產能。從更高層次來看，25G 雷射仍是產業在滿足高速光連接需求成長時的一大瓶頸。

As our production output ramps, we see ample opportunity to unlock the full potential for 100-gig volumes based on our scalable cost-efficient Etched Facet Technology. Based on our progress on yielding 25G lasers, last quarter we triggered an expansion of our roster of white-box transceiver partners, thereby launching our Data Center solutions business.

隨著我們的產出爬坡，我們看到充足機會，憑藉可擴充且具成本效率的 Etched Facet Technology，釋放 100G 出貨量的全部潛力。基於我們在 25G 雷射良率方面的進展，上季我們啟動擴增白牌收發器合作夥伴名單，進而推出我們的資料中心解決方案業務。

We entered into an agreement with a new customer, which had material revenue contribution in the quarter. This agreement enables a new high-volume optical manufacturer to enter the business of delivering fully qualified CWDM4 transceivers to cloud service providers, from their new 400,000-square foot manufacturing facility.

我們與一位新客戶達成協議，並在本季帶來具實質性的營收貢獻。該協議使一家新的高產量光學製造商得以進入此業務，從其新的 40 萬平方英尺製造設施，向雲端服務供應商提供完全合格的 CWDM4 收發器。

Our solutions business model and production-qualified transceiver designs accelerate the scalability of manufacturing footprint that's necessary to meet growing data center industry demands. This installs dedicated capacity and a ready-made supply chain, which will consume MACOM data center components, as we scale production in the second half of 2018 and beyond.

我們的解決方案業務模式以及已通過量產資格認證的收發器設計，加速了製造版圖的可擴展性，而這正是滿足資料中心產業需求成長所必需的。這建立了專屬產能與現成的供應鏈；隨著我們在2018年下半年及其後擴大產量，該供應鏈將消耗MACOM的資料中心元件。

With increasing availability of our lasers, we believe that we are well positioned to step and repeat, scaling our solutions business by enabling multiple high-volume manufacturing partners to begin production ramps as necessary to meet industry demands over the course of the coming quarters.

隨著我們雷射產品供應日益充足，我們相信我們已具備良好條件可複製並擴張，透過讓多家高產量製造合作夥伴在未來幾季按需啟動量產爬坡，以滿足產業需求，進而擴大我們的解決方案業務。

Finally, corresponding with the availability of Broadcom's Tomahawk 3 chipset, we now anticipate our 100-gig PAM-4 portfolio to begin ramping, layering in on top of CWDM and major Tier 1 networking OEMs over the course of 2019. In aggregate, we believe the breadth of our portfolio per Data Centers is second to none, a key reason why North American cloud service providers are engaging with MACOM directly to scale their supply chains.

最後，配合博通（Broadcom）的Tomahawk 3晶片組供應，我們現在預期我們的100G PAM-4產品組合將於2019年開始放量，在CWDM之上進一步疊加，並在2019年期間導入主要的一級（Tier 1）網路設備OEM。整體而言，我們相信就資料中心而言，我們產品組合的廣度無出其右；這也是北美雲端服務供應商直接與MACOM合作以擴大其供應鏈的關鍵原因。

Equally as important, we're agnostic with respect to protocols at 100 gig and beyond, whether it's SR4s, CWDM, PAM-4, pre-standard, 200- and 400-gig solutions and eventually, 400-gig single lambda. We supply them all. Our front-line engagements with cloud service providers, module manufacturers, and networking equipment OEMs, provide MACOM with a unique perspective on the overall trends and technology adoption curves within the industry. Ultimately, steering our timing and road map of products and solutions.

同樣重要的是，在100G及更高速率方面，我們對協定保持中立，無論是SR4、CWDM、PAM-4、前標準（pre-standard）、200G與400G解決方案，最終還包括400G單波長（single lambda）。我們全部供應。我們與雲端服務供應商、模組製造商以及網路設備OEM的第一線互動，讓MACOM對產業整體趨勢與技術採用曲線具備獨特視角。最終，這將引導我們產品與解決方案的時程與路線圖。

In total, Data Center is shaping up to be a major growth driver for the remainder of 2018 and for many years to come. Now moving over to I&D.

總體而言，資料中心正逐步成為2018年剩餘期間以及未來多年重要的成長驅動力。現在轉到工業與國防（I&D）。

Industrial and Defense was $48.4 million. This part of the business is performing quite well, with Q3 revenue up 10% sequentially, as we continue to capitalize on share gains as competitors undergo consolidation. We expect this business to remain robust for the foreseeable future. We enter Q4 with strong bookings and backlog, driven by new program bid activity and revived demands for legacy products where we hold preeminent market share. Demand is being driven, in part, by retrofitting and modernizing military equipment, particularly in radar and threat protection, where MACOM has long enjoyed an incumbent position, leveraging proprietary technologies like HMIC and AlGaS.

工業與國防營收為4,840萬美元。這部分業務表現相當良好，第三季營收較前一季成長10%，因為在競爭對手進行整併之際，我們持續把握市占提升的機會。我們預期在可預見的未來，這項業務將維持強勁。我們以強勁的訂單與在手訂單（backlog）進入第四季，動能來自新專案投標活動，以及對我們擁有領先市占之既有產品的需求回溫。需求部分來自軍用裝備的翻新與現代化，特別是在雷達與威脅防護領域；MACOM長期以來在此具備既有供應商地位，並運用HMIC與AlGaS等專有技術。

Perhaps even more exciting, we're building upon the strong base business in radar components, with new opportunities in active antennas, building our high-performance RF and microwave components and to transmit/receive modules and tile assemblies. Leveraging our pioneering work with Empire and MIT Lincoln Labs, we have a unique approach to providing a scalable solution, with a commercial class structure that's rooted in, again, our highly-proprietary core technologies.

更令人振奮的是，我們在雷達元件的穩固基礎業務之上，正把握主動式天線的新機會，打造高效能RF與微波元件，並延伸至收發（T/R）模組與拼接式陣列（tile）組件。憑藉我們與Empire及MIT林肯實驗室（Lincoln Labs）的開創性合作成果，我們以獨特方式提供可擴展的解決方案，並以商用品級的架構為基礎，而其根源同樣在於我們高度專有的核心技術。

As one example, we recently secured new business with Syracuse Research Corporation, or SRC, using our SPAR Tiles for active electronically scanned radar on a mobile platform called Sky Chaser, which combats the growing threat from readily available commercial drones and smart munitions. This new work covers both prototypes and the initial production ramp and will begin to contribute modestly to revenue in the second half of 2018. Based on current activity with other customers, government agencies and pending budget appropriations, this program looks to be a part of a much broader trend within the DoD and DHS, to address urgent needs of national security. We hope to have more to share with you about this in future earnings calls.

例如，我們近期與雪城研究公司（Syracuse Research Corporation，SRC）取得新業務，於名為Sky Chaser的機動平台上，使用我們的SPAR Tiles用於主動式電子掃描雷達，以對抗市面上日益普及的商用無人機與智慧彈藥所帶來的威脅。這項新工作涵蓋原型與初期量產爬坡，並將於2018年下半年開始對營收做出小幅貢獻。基於我們與其他客戶、政府機構的現有活動以及待核准的預算撥款，該專案看來將成為國防部（DoD）與國土安全部（DHS）更廣泛趨勢的一部分，以因應國家安全的迫切需求。我們希望在未來的財報電話會議中，能與各位分享更多相關進展。

In total, we expect sales into Industrial and Defense to progressively grow through coming quarters in 2018, as we seek to capture share on top of strengthening demand in Industrial and Defense capital programs.

總體而言，隨著我們在工業與國防資本專案需求走強之上進一步爭取市占，我們預期2018年接下來幾季對工業與國防的銷售將逐季成長。

And finally, telecom revenue was $51 million, down 21% sequentially, due largely to the exit of the LR4 business. We believe that the overarching recovery in telecom-related spending in China continues to play out and that inventory corrections in segments like Metro/Long-haul have now largely run their course. That said, over the past 90 days, Chinese operators seem to have slow-rolled orders across their supplier base in certain segments like 4G LTE backhaul, anticipating resolution of ZTE status with the U.S. Department of Commerce. While we had already factored direct ZTE sales out of our Q3 revenue assumptions, the broader spending delay from Chinese operators temporarily moderated the pace of China market recovery during the quarter. We view this as a temporary issue that is already largely behind us. Now that the U.S. Department of Commerce has terminated the denial order, new tenders have been awarded to ZTE from all 3 Chinese operators in a very public fashion. We're now engaged with ZTE and their suppliers to rebuild and resume their supply chain, though that process could takes months to get back to normal. We also resumed engagements with ZTE on additional growth prospects tied to greater share rewards as well as new programs. Again, this will take time to see orders, and ZTE works to regain traction, operationally.

最後，電信營收為5,100萬美元，較前一季下滑21%，主要是因為退出LR4業務。我們認為，中國電信相關支出的整體復甦仍在持續推進，而都會/長途（Metro/Long-haul）等細分領域的庫存修正如今大致已告一段落。不過，在過去90天，中國營運商在某些領域（如4G LTE回傳）似乎在其供應商體系中放緩下單，等待美國商務部對中興（ZTE）狀態的解決。雖然我們已將對ZTE的直接銷售自第三季營收假設中剔除，但中國營運商更廣泛的支出延後，仍在本季暫時抑制了中國市場復甦的速度。我們視此為暫時性問題，且目前大致已經過去。隨著美國商務部終止拒絕令（denial order），三大中國營運商已以相當公開的方式將新標案授予ZTE。我們目前正與ZTE及其供應商合作，重建並恢復其供應鏈，但該流程可能需要數月才能回到正常。我們也已恢復與ZTE就其他成長機會的合作，包括更高市占回饋以及新專案。同樣地，這需要時間才能看到訂單，且ZTE也需要在營運上重新站穩腳步。

In total, we see our overall telecom business set to resume growth, as network operators get back to their normal course of business and ramp global investments in 5G. Looking forward, we view traditional telecom product lines, like Metro/Long-haul drivers, 2.5-gig PON and 10G backhaul as stable cash flow businesses. Growth will instead come from 5G products like 25-gig lasers for fronthaul, at 100-gig CWDM solutions for mid-haul, both of which leverage our breakout in Data Centers, as well as leadership positions in AlGaS FEMs and GaN on Silicon power amplifiers.

總體而言，隨著網路營運商回到正常營運節奏並加速全球5G投資，我們預期整體電信業務將恢復成長。展望未來，我們認為傳統電信產品線（如都會/長途驅動器、2.5G PON與10G回傳）將是穩定的現金流業務。成長則將來自5G產品，例如用於前傳（fronthaul）的25G雷射、用於中傳（mid-haul）的100G CWDM解決方案；兩者皆受益於我們在資料中心的突破，以及我們在AlGaS FEM與矽基GaN功率放大器方面的領先地位。

Along these lines, in the third quarter, we saw a significant quarter-on-quarter growth in base station shipments for both GaN and FEM products. As a reminder, our FEMs are high-power equivalent of the multi-chip modules that mobile RF suppliers ship into handsets and smartphones. Inside our FEMs, proprietary AlGaAs and HMIC switches provide the industry's lowest insertion loss, and thereby, superior reception for high-power base station antennas. This provides a high barrier to entry and it's highly valued by our customers.

在這方面，第三季我們看到GaN與FEM產品的基地台出貨量較前一季顯著成長。提醒一下，我們的FEM是高功率版本，類似於行動RF供應商出貨至手機與智慧型手機的多晶片模組。在我們的FEM內部，專有的AlGaAs與HMIC開關提供業界最低的插入損耗，因此能為高功率基地台天線帶來更優異的接收表現。這形成了很高的進入門檻，並且深受客戶重視。

Our GaN and FEM products have begun to ramp across multiple customers and platforms for both macro base station and massive mono deployments. Q3 revenue included the start of early volume production on GaN shipments, supporting initial field deployments. We also expanded our pipeline of GaN design wins at target accounts, securing new business at 4.9 gigahertz.

我們的GaN與FEM產品已開始在多家客戶與多個平台上放量，涵蓋宏基地台與大規模MIMO部署。第三季營收包含GaN出貨早期量產的開始，用以支援初期的現場部署。我們也在目標客戶中擴大GaN設計導入（design win）的管線，並在4.9 GHz取得新業務。

In total, we expect our 5G base station and optical products to contribute to telecom growth quarter-by-quarter through the remainder of calendar 2018 and continue through the multi-year build-out of 5G networks worldwide.

總體而言，我們預期5G基地台與光學產品將在2018年曆年剩餘期間逐季推動電信成長，並在全球5G網路多年期建置過程中持續貢獻。

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

接下來，我把時間交給Bob，請他更詳細地回顧我們會計年度第三季的財務表現。

Thank you, John, and good afternoon, everyone. I will review MACOM's fiscal third quarter results and financial position, outline the financial effect of MACOM's exit of the LR4 subassembly business, other product lines and certain production facilities, and discuss the white-box Data Center transceiver agreement on a GAAP and non-GAAP basis.

謝謝你，John，各位下午好。我將回顧 MACOM 會計年度第三季的業績與財務狀況，概述 MACOM 退出 LR4 子組件業務、其他產品線及部分生產設施的財務影響，並以 GAAP 與非 GAAP 口徑討論白牌（white-box）資料中心收發器協議。

First, fiscal third quarter's non-GAAP operating results. Non-GAAP revenue in the fiscal third quarter was $145 million, down 26% year-over-year and down from $150 million or 4% sequentially. Revenue for the sold LR4 subassembly business in the fiscal third quarter was $400,000 versus fiscal second quarter revenue of $12.4 million. Adjusting out the LR4 subassembly revenue in both fiscal quarters, revenues would have grown sequentially, from $138 million to $144 million or approximately 5%.

首先是會計年度第三季的非 GAAP 營運結果。會計年度第三季非 GAAP 營收為 1.45 億美元，年減 26%，且較上一季的 1.50 億美元季減 4%。第三季已出售之 LR4 子組件業務營收為 40 萬美元，相較之下，第二季營收為 1,240 萬美元。若將兩季的 LR4 子組件營收皆剔除，營收將呈現季增，從 1.38 億美元增至 1.44 億美元，約成長 5%。

Revenue by end markets. Telecom was $51 million and 35% of total revenue, down 45% year-over-year. Data Center was $46 million and 32% of total revenues, down 21% year-over-year. And Industrial and Defense was $48 million and 33% of total revenue, up 9% year-over-year. Sequentially, telecom was down 21%; Data Center, up 8%; and Industrial, Defense, up 10%.

依終端市場別之營收。電信為 5,100 萬美元，占總營收 35%，年減 45%。資料中心為 4,600 萬美元，占總營收 32%，年減 21%。工業與國防為 4,800 萬美元，占總營收 33%，年增 9%。以季比而言，電信季減 21%；資料中心季增 8%；工業、國防季增 10%。

Non-GAAP gross profit and gross margin in the fiscal third quarter was $81 million and 56% of revenue, respectively, compared to $114 million and 58.5% of revenues, respectively, year-over-year, and $78 million and 51.6%, respectively, on a sequential basis.

會計年度第三季非 GAAP 毛利與毛利率分別為 8,100 萬美元與營收的 56%，相較於去年同期分別為 1.14 億美元與營收的 58.5%；相較於上一季則分別為 7,800 萬美元與 51.6%。

In terms of operating expenses. Total non-GAAP operating expenses were $65 million, compared to $61 million year-over-year and $62 million sequentially. Adjusted operating expenses were up 6% year-over-year and up 4%, sequentially.

就營業費用而言。非 GAAP 營業費用總額為 6,500 萬美元，相較去年同期為 6,100 萬美元，上一季為 6,200 萬美元。調整後營業費用年增 6%，季增 4%。

Adjusted R&D and SG&A expenses were $42 million and $23 million, respectively, in the fiscal third quarter.

會計年度第三季調整後研發費用與銷售、一般及管理費用（SG&A）分別為 4,200 萬美元與 2,300 萬美元。

Total non-GAAP income from operations and operating margins were $17 million and 11% of revenue, down 69% in dollars and down 58% on a percentage basis, respectively, year-over-year; and sequentially, up 5% in dollars and up 9% on a percentage basis.

非 GAAP 營業利益總額與營業利益率分別為 1,700 萬美元與營收的 11%；相較去年同期，金額年減 69%，比率年減 58%；而以季比而言，金額季增 5%，比率季增 9%。

Net interest expense was up sequentially $500,000, over fiscal Q2, due to higher interest rates.

由於利率上升，淨利息費用較第二季季增 50 萬美元。

Our normalized non-GAAP income tax rate in the fiscal third quarter continued at 8%. Our GAAP effective tax rate was less than 3%. As the cash taxes, we had cash net refunds of $600,000 based upon resolved and agreed IRS audits for tax years 2013 and 2014. We are amending our Federal 2015 return, which we expect will generate a future cash refund of $4 million. Additionally, we expect to receive tax refunds from state income tax filings yet to be calculated and yet to be amended.

我們會計年度第三季的常態化非 GAAP 所得稅率維持在 8%。我們的 GAAP 有效稅率低於 3%。就現金稅負而言，基於已解決並與美國國稅局（IRS）達成一致的 2013 與 2014 課稅年度稽核，我們取得 60 萬美元的現金淨退稅。我們正在修正聯邦 2015 年度申報，預期將產生未來 400 萬美元的現金退稅。此外，我們預期也將收到尚待計算且尚待修正之州所得稅申報的退稅。

Our fiscal third quarter non-GAAP net income and EPS were $9 million and $0.13 per fully diluted share, respectively, down from $44 million and $0.67 year-over-year. Sequentially, non-GAAP net income was up $100,000 and EPS was flat at $0.13.

我們會計年度第三季非 GAAP 淨利與每股盈餘（EPS）分別為 900 萬美元與每股完全稀釋後 0.13 美元，低於去年同期的 4,400 萬美元與 0.67 美元。以季比而言，非 GAAP 淨利增加 10 萬美元，EPS 持平為 0.13 美元。

Non-GAAP net income was down 80% year-over-year but flat sequentially. Non-GAAP EPS was down 80% year-over-year but flat sequentially. The share count used to calculate non-GAAP EPS was 65.6 million fully diluted shares.

非 GAAP 淨利年減 80%，但季比持平。非 GAAP EPS 年減 80%，但季比持平。用以計算非 GAAP EPS 的股數為 6,560 萬股完全稀釋後股數。

Adjusted EBITDA or earnings before interest, taxes, depreciation and amortization, was $24 million, down 61% from $62 million in our 2017 fiscal third quarter, but up 3% from $23 million sequentially.

調整後 EBITDA（息稅折舊攤銷前盈餘）為 2,400 萬美元，較 2017 會計年度第三季的 6,200 萬美元下滑 61%，但較上一季的 2,300 萬美元季增 3%。

Moving to cash flow. GAAP cash flow from operations was $100,000 compared to our 2017 fiscal third quarter of $28 million and $11 million during fiscal second quarter of 2018. After deducting capital expenditures, adjusted free cash flow was negative $13 million, compared to $20 million in the fiscal third quarter of 2017 and down from negative $2 million sequentially.

接著看現金流。GAAP 營運活動現金流為 10 萬美元，相較於 2017 會計年度第三季的 2,800 萬美元，以及 2018 會計年度第二季的 1,100 萬美元。扣除資本支出後，調整後自由現金流為負 1,300 萬美元，相較於 2017 會計年度第三季為 2,000 萬美元，且較上一季的負 200 萬美元惡化。

Capital expenditures in the fiscal third quarter was $13 million or 9% of revenues, essentially flat with last fiscal quarter. Depreciation expense was approximately $7.6 million, flat with last fiscal quarter.

會計年度第三季資本支出為 1,300 萬美元，約占營收 9%，與上一季基本持平。折舊費用約為 760 萬美元，與上一季持平。

Our investment in capital expenditures exceeded our current levels of depreciation, reducing our free cash flow by approximately $5 million.

我們在資本支出上的投資高於目前的折舊水準，使自由現金流約減少 500 萬美元。

Key MACOM balance sheet numbers. At fiscal third quarter end, our cash, cash equivalents and short-term investments were $183 million, down from $190 million sequentially. Accounts receivable were $101 million, down from $107 million sequentially. Days sales outstanding were 64 days, down from 65 days sequentially. Inventories were $123 million down from $144 million sequentially. Inventory turns were flat at 2x, and days of inventory were 178 days compared to 180 days sequentially.

MACOM 資產負債表的關鍵數字。截至會計年度第三季季末，我們的現金、約當現金及短期投資為 1.83 億美元，較上一季的 1.90 億美元下降。應收帳款為 1.01 億美元，較上一季的 1.07 億美元下降。應收帳款週轉天數（DSO）為 64 天，較上一季的 65 天下降。存貨為 1.23 億美元，較上一季的 1.44 億美元下降。存貨週轉率持平為 2 倍，存貨天數為 178 天，相較上一季為 180 天。

Long-term debt was $686 million inclusive of capital leases. Long-term debt is termed with minimum annual principal repayments until maturity at May 2024. We also have $160 million of availability in an undrawn credit line and did extend the maturity of our credit line to May 2021 during the quarter. Gross and net leverage were 6 and 4.4x, respectively.

長期負債為 6.86 億美元（含資本租賃）。長期負債為定期借款，至 2024 年 5 月到期前，每年需最低本金償還。我們另有 1.60 億美元未動用之循環信用額度可供動用，並已於本季將該信用額度的到期日延長至 2021 年 5 月。總槓桿與淨槓桿分別為 6 倍與 4.4 倍。

As we announced at our last earning call, MACOM completed an agreement to exit the LR4 business of manufacturing and selling subassemblies. We expect that MACOM will continue to supply the buyer with semiconductor components going forward. MACOM is retaining key design talent and resources.

如同我們在上次法說會所宣布，MACOM 已完成一項協議，將退出 LR4 子組件的製造與銷售業務。我們預期 MACOM 未來仍將持續向買方供應半導體元件。MACOM 將保留關鍵設計人才與資源。

The structure of the exit includes the license fee, sale of related inventory and certain manufacturing equipment. Payments will generate $17 million of incremental cash flow during fiscal 2018 and early fiscal 2019. MACOM, in its fiscal third quarter, wrote down certain acquired intangibles and other assets. This noncash write-off amounted to $34 million and contributed to the reported GAAP loss.

此次退出的架構包括授權費、相關存貨的出售以及部分製造設備的出售。相關款項將在 2018 會計年度及 2019 會計年度初期帶來 1,700 萬美元的增量現金流。MACOM 於會計年度第三季對部分取得之無形資產及其他資產進行減記。此項非現金減記金額為 3,400 萬美元，並導致所報告的 GAAP 虧損。

Over the past few quarters, MACOM undertook a review of the efficiencies of operating 2 laser fabs. During this time, we see an improving production and successful output of our 4-inch Lowell fab, and we've decided to terminate manufacturing of Indium Phosphide lasers in our 3-inch facility. The complexities and duplicate costs of running 2 independent laser fabs, including redundant, production qualifications, are outweighed by maximizing production of the 4-inch wafers. And we began to consolidate all laser manufacturing in our 4-inch Lowell fab. This and other product line actions resulted in a nonrecurring charge of $18 million during the fiscal third quarter.

過去幾個季度，MACOM 對營運兩座雷射晶圓廠的效率進行檢視。在此期間，我們看到 4 吋 Lowell 廠的生產改善且產出成功，因此決定終止在 3 吋廠生產磷化銦（Indium Phosphide）雷射。營運兩座獨立雷射晶圓廠的複雜性與重複成本（包括重複的生產認證）不如將產能最大化於 4 吋晶圓生產來得有利。因此我們開始將所有雷射製造整併至 4 吋 Lowell 廠。此舉及其他產品線行動使我們在會計年度第三季認列 1,800 萬美元的一次性費用。

Finally, fiscal Q3 included $7 million of revenue in our new Data Center solutions business, in which we secured the first of what we believe to be many such agreements. This creates a new revenue stream, monetizing what were previously strategic investments in our Data Center business.

最後，財政年度第三季在我們新的資料中心解決方案業務中貢獻了700萬美元的營收，我們也在其中取得了我們相信將會是眾多此類協議中的第一份。這創造了一條新的營收來源，將先前在我們資料中心業務中的策略性投資加以變現，而這些投資過去並未帶來營收。

Back to you, John.

交回給你，John。

Thanks, Bob. To summarize, we've weathered the storm of last year's industry-wide downturn in China, and are currently navigating turbulence from lingering international trade tensions. While such macro events are impossible to predict and challenging to navigate, we remain committed to making necessary investments in bringing our portfolio of disruptive technologies to fruition within our targeted areas of global secular growth.

謝謝，Bob。總結來說，我們已挺過去年中國全產業下行的風暴，目前也正在因持續的國際貿易緊張而面臨波動。雖然這類總體事件難以預測且不易因應，我們仍致力於進行必要投資，讓我們在所鎖定的全球長期結構性成長領域中，將一系列顛覆性技術推向成果落地。

We believe we are now exceptionally well positioned to capitalize on the next phase of infrastructure spending well beyond China. Driven by 5G telecom, cloud data centers and, now, a surge in civil and defense spending, to address key areas of vulnerability for homeland and international security.

我們相信，我們現在已具備極佳的定位，能把握下一階段、遠超中國以外的基礎建設支出。其動能來自5G電信、雲端資料中心，以及如今為因應國土與國際安全關鍵脆弱點而增加的民用與國防支出。

To be sure, sustaining these investments has created a near-term drag on EPS, but we believe we are rapidly approaching payoff. Looking ahead, we believe that the future contribution from these will provide significant operating leverage for the company as we monetize what were previously strategic investments with little revenue contribution.

確實，維持這些投資在短期內對每股盈餘（EPS）造成拖累，但我們相信我們正快速接近回收期。展望未來，我們認為這些投資的後續貢獻，將在我們把先前幾乎沒有營收貢獻的策略性投資加以變現時，為公司帶來顯著的營運槓桿。

As these efforts come to fruition, we are squarely fixated on getting back to our target financial operating model of 60% gross margin; 30% operating margin; and 60% free cash flow.

隨著這些努力開花結果，我們將明確聚焦於回到我們目標的財務營運模型：60%的毛利率、30%的營業利益率，以及60%的自由現金流。

Moving forward, we are taking it one quarter at a time, guiding paced on customer backlog, order visibility and our operational ability to scale these new products and technologies. That brings me to Q4 guidance.

往後我們將以每一季為單位推進，並根據客戶積壓訂單、訂單能見度，以及我們在營運上擴大這些新產品與新技術規模的能力來提供指引。接下來我說明第四季展望。

For the fiscal fourth quarter ending September 28, 2018, we expect revenue to be in the range of $149 million to $155 million. Adjusted gross margin is expected to be between 55% and 57%, and adjusted earnings per share between $0.15 and $0.17, on an anticipated 66.5 million fully diluted shares outstanding.

對於截至2018年9月28日的財政年度第四季，我們預期營收將介於1.49億至1.55億美元之間。調整後毛利率預期介於55%至57%，調整後每股盈餘預期介於0.15至0.17美元，係以預估6,650萬股完全稀釋流通股數計算。

Operator, you may now open the call to questions.

接線員，現在可以開放提問。

(Operator Instructions) Our first question comes from the line of Quinn Bolton with Needham and Company.

(接線員指示) 我們的第一個問題來自Needham and Company的Quinn Bolton。

John, can you walk us through just sort of this new Data Center solutions? It looks like it created a deferred revenue, in the June quarter, to the tune of $7 million that you included in non-GAAP revenue, and it looks like you're sort of backing that out of your forward guidance. Can you just give us a little bit more color what sort of led to that being classified as deferred revenue rather than actual revenue?

John，你能帶我們了解一下這個新的資料中心解決方案嗎？看起來它在6月季度形成了遞延收入，金額約700萬美元，你們把它納入了非GAAP營收，但看起來你們又在前瞻指引中把它回沖剔除。你能否再多提供一些背景，說明為什麼它被歸類為遞延收入，而不是在當期認列為實際營收？

Yes. I'll have Bob talk about the accounting treatment. I'll cover the business model and the solutions. Bob do you want to?

可以。我會請Bob談談會計處理方式。我來說明商業模式與解決方案。Bob，你要先說嗎？

Yes. So Quinn, thanks very much for being upfront here. So first of all, non-GAAP is appropriate. We think it reflects an accurate reflection of the business and operating for both the third quarter and the fourth quarter. Basically, we ran a multi-quarter negotiation. And we had visibility that we'll close in fiscal Q3, and we did include the amount in our financial guidance and the implications of that in that guidance. On the transaction itself, we had met all deliverables. We received customer written acceptance. And the customer payment is in transit, according to the contractual payment terms. So we felt, again, it's more accurate to reflect as a adjustment to revenue. There are some minor, we think, insignificant open items on the revenue recognition rules that will resolve themselves the next quarter.

好。Quinn，謝謝你在這裡直接提出這個問題。首先，採用非GAAP是適當的。我們認為它能更準確反映第三季與第四季的業務與營運狀況。基本上，我們進行了一場跨多季的談判。我們有把握會在財政年度第三季完成簽約，而我們也確實完成了，並且在財務指引中納入了該金額以及其對指引的影響。就交易本身而言，我們已完成所有交付項目。我們也收到客戶的書面驗收。依照合約付款條款，客戶款項正在匯款途中。因此我們認為，再次強調，把它作為對營收的調整來呈現更為準確。在收入認列規則上仍有一些我們認為屬於次要、且不具重大性的未結事項，將在下一季自行解決。

So it sounds like you just -- you didn't have sort of all of the "accounting Ts crossed, Is dotted" to be able to recognize it as actual revenue in the June quarter?

所以聽起來是你們只是——在6月季度要把它認列為實際營收時，還沒有把所有「會計上的T都劃過、I都點上」？

Yes. I'd like to point it in the perspective of what we did have, and how we guided to include that number and the adjustment is the right way to look at the business and not inflating next year -- next quarter's guidance at the expense of this actual. It's just a small inconvenience.

是的。我想從我們已具備的條件來看待這件事：我們在指引中已納入該數字，而以調整的方式呈現，才是看待業務的正確方式，也避免為了這筆實際發生的交易而在明年——下一季的指引上被動墊高、造成失真。這只是個小小的不便。

Understood. And then, John, can you walk through the sort of business?

了解。那John，你能談談這個商業模式嗎？

Yes. So the solutions model is basically -- you can imagine we have a market, in the case of CWDM4, which is expected to grow from 3 million to 4 million units to as much as 10 million next year. So it's a lot of end-market demands that needs to be fulfilled. So the production needs to be scaled at that industry level. It's very much bottleneck today in terms of critical components supply, like lasers, but also the manufacturers, to be able to produce 10 million of these 100-gig transceivers is a big deal. So our solutions model is we've invested very heavily in producing a transceiver, QSFP28 transceiver, which is fully qualified and in-production at places that matter in the industry, that I can't speak to, as well as the transmit/receive optical subassemblies, the TOSAs/ROSAs. So in this model, we basically transfer those designs and license those to high-volume manufacturers, who can then put those into large productions facilities and scale unit production to be able to scale that demand. And that on an ongoing basis, we monetize by selling components, these merchant market components at market prices. And then we also secure the revenue and the fees, to cover -- to monetize, basically, what we've invested in at the transceiver level. So it's pretty compelling. The people who are lining up, looking to be able to benefit from this, you can imagine being given a design that's already been qualified in places that matter is quite valuable to them.

可以。這個解決方案模式基本上——你可以想像我們面對一個市場，以CWDM4為例，預期將從300萬到400萬顆的出貨量，成長到明年高達1,000萬顆。因此終端市場有大量需求需要被滿足。所以產能必須擴大到產業等級的規模。目前在關鍵零組件供應上存在明顯瓶頸，例如雷射，但也包括製造端；要能生產1,000萬個這種100G收發器，是一件大事。因此我們的解決方案模式是：我們在生產收發器（QSFP28收發器）上投入非常多資源，該產品已在產業中關鍵的地方完成完整認證並進入量產（我無法具體說明），同時也包括發射/接收光學子組件，也就是TOSA/ROSA。在這個模式下，我們基本上把這些設計移轉並授權給高產量製造商，讓他們能在大型生產基地中導入並擴大量產，以滿足需求規模。而在持續性方面，我們透過以市場價格銷售元件（這些商用市場元件）來變現。此外，我們也取得營收與費用，用以涵蓋——也就是把我們在收發器層級的投入加以變現。所以這相當有吸引力。你可以想像，對於那些排隊希望受益的業者而言，能取得一個已在關鍵場域完成認證的設計，價值相當高。

And then just a follow-up on that. Back at OFC, I think you guys had mentioned 2 partners in the Asia subcontractor space that you'd partnered with. It sounds like this partner that you've been out today is a third partner for this business?

接著就此追問一下。在OFC時，我記得你們提到在亞洲代工承包商領域有兩個合作夥伴。聽起來你們今天提到的這個夥伴，是這項業務的第三個合作夥伴？

I'm going to avoid the question, directly, because this is pretty proprietary to MACOM, and we do have other negotiations ongoing, so if I could pass on that to a later date.

我會避免直接回答這個問題，因為這對MACOM而言相當具專有性，而且我們也還有其他談判正在進行，所以如果可以的話，我想把這個留待之後再談。

The next question comes from the line of Harsh Kumar with Piper Jaffray.

下一個問題來自Piper Jaffray的Harsh Kumar。

I just wanted to follow up on the previous question by Quinn. So my understanding of what you just said is you have the design win or the design. Do you then sell your components to this manufacturer, the high-volume manufacturer? Or do you give it to them to make the final box, and is the final box yours or theirs to sell?

我想延續Quinn前一個問題再追問一下。所以依我對你剛才所說的理解，你們有設計導入（design win）或是設計本身。那你們接著是把你們的元件賣給這家製造商、也就是高產量製造商嗎？還是你們把設計交給他們去做最終的盒裝產品，而最終的盒裝產品是由你們來賣，還是由他們來賣？

I'll work backwards of it, it's theirs to sell. So they fulfill demand directly with the cloud service providers. And by the way, it is exactly the same for 5G telecom. The mid-haul is shaping up to be CWDM4 as well. But we basically license them, transfer the design. So we invested in the full transceiver design and the TOSA/ROSA designs. So we put it into their factories and help them qualify that. And then on a sustained basis, we sell them the components to build those.

我會從後往前說，這是他們的產品，由他們來賣。因此他們直接向雲端服務供應商滿足需求。順帶一提，5G 電信也是完全一樣。中傳段（mid-haul）也正在成形為 CWDM4。但基本上我們是授權給他們，並移轉設計。所以我們投資了完整的收發器設計以及 TOSA/ROSA 設計。我們把它導入他們的工廠並協助他們完成認證。接著在長期、持續的基礎上，我們向他們銷售用來組裝這些產品的元件。

Got it. So you're still in the same business you were which is selling components and nothing really different, except that you're actually going in and getting the design win. And that's the big value-add here, is that like almost a distribution model?

了解。所以你們仍然是在做原本的生意，也就是賣元件，基本上沒有什麼不同；只是你們實際上會介入並拿下設計導入。而這裡最大的加值在於，這幾乎像是一種通路／分銷模式？

Oh, yes. Yes, it's, absolutely, it's a solution services model. So there's no design win, per se, we design it in ourselves, and we just put it into production in high-volume factories. And then it's pre -- like I said, it's already in production, qualified in places that matter. They bring their value there, which is very high-volume, low-cost manufacturing, so it's a very efficient supply chain. And we do what we do best, which is produce very high-volume components at very attractive cost structures. So everybody stays within their core competence. And the cloud service guys get what they want, which is a very efficient scalable supply chain.

喔，是的。是的，完全沒錯，這絕對是一種解決方案服務模式。所以嚴格來說並沒有什麼設計導入（design win），我們是自己把它設計進去，然後只是在高產量工廠導入量產。而且它是預先——如我所說——已經在量產中，並且在重要的地方完成認證。他們的價值在於超高產量、低成本製造，因此供應鏈非常有效率。而我們做我們最擅長的事，也就是以非常有吸引力的成本結構生產超高產量的元件。所以每個人都維持在自己的核心能力範圍內。而雲端服務業者得到他們想要的：一個非常有效率、可擴展的供應鏈。

Our next question comes from the line of Mark Delaney with Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）的 Mark Delaney。

First question is hoping that I get some more color on the comment about improved yields for your 25-gig lasers. Do you have any quantification or better framing for us in order to help size the extent of the improvement that the company has achieved? And should we think about just growth additions and the number of lasers that MACOM's going to be manufacturing? Or are you going to be transitioning some of the manufacturing of PAM lasers over to your 25-gig lasers?

第一個問題是希望能對你們提到 25G 雷射良率改善的評論有更多細節。你們能否提供任何量化數據或更好的說法，幫助我們評估公司達成的改善幅度？另外，我們應該把它理解為只是產能擴增、以及 MACOM 將要製造的雷射數量增加嗎？還是你們會把部分 PAM 雷射的製造轉移到你們的 25G 雷射上？

Yes. At this point, it looks like we can sustain PAM product and Data Center production, and that's one of the things about consolidating factories. The yields are improving to the point in the 4-inch factory that we don't feel we need this redundancy, with the downside of a redundancy on the COGs, for the second factory. In terms of the yields, I think it'd be so inappropriate for me to quantify our yields publicly. But I would say the way to think about it is it's very significant integer multiples, times increase in units out per wafer. So it's integer multiples, not percentage multiples. And what it really did is it hit the threshold where we turn on the factory. We were holding back because we didn't want to be inefficient in the capacity utilization. So right now, we filled our pipeline for the Lowell fab. So this is from FE, through etching, through the factory, through the front-end, through the back-end and out. So what you'll see in the coming quarters is stepped progress as those units begin flowing out of the factory later this quarter.

是的。就目前來看，我們似乎可以同時維持 PAM 產品與資料中心的生產，這也是整併工廠的原因之一。在 4 吋廠的良率改善到一個程度後，我們覺得不需要這種備援；因為第二座工廠的備援會在銷貨成本（COGs）上帶來不利影響。至於良率，我認為我公開量化我們的良率會非常不恰當。但我會說，理解方式是：每片晶圓的可出貨單位數（units out per wafer）出現非常顯著的整數倍提升。是整數倍，而不是百分比的倍數。而它真正帶來的效果是達到我們啟動工廠的門檻。我們之前一直保守，是因為不希望在產能利用率上變得沒有效率。所以現在，我們已經把 Lowell 晶圓廠的產線管線填滿了。也就是從 FE、到蝕刻、到工廠、到前段、到後段，然後出貨。因此你們會在接下來幾季看到階梯式的進展，因為這些單位將在本季稍晚開始從工廠流出。

That's helpful. And then for my follow-up on the same topic, with the factory that you plan to shut down. Can you help us understand what the margin implications could be and when we can expect to see the improved margins from that activity?

這很有幫助。接著同一個主題的追問，關於你們計畫關閉的那座工廠。你能否協助我們理解這對毛利率可能的影響，以及我們何時能看到這項行動帶來的毛利率改善？

Yes. So I'll point out we did guide, I believe, slightly up on gross margins, for our guide. So it is as we've talked about in the past, we have visibility to continue to improve towards that 60% target gross margin. So as we enter and exit fiscal '18 in September, the full benefit of that will start coming into our contribution and gross margin in the first quarter of fiscal '19. We -- in terms of overall mix, we see improvement across the board, and as John talked about, yield improvement in 25-gig lasers is important to that march to 60% as well. So all this together, I think we get there -- our line of sight continues to be very positive towards getting to the 60%.

是的。我先指出，我們在指引中，我相信毛利率指引是略微上調的。因此如同我們過去談到的，我們有能見度可以持續改善，朝 60% 的目標毛利率前進。當我們在 9 月進入並結束 2018 會計年度時，這項效益的完整貢獻將在 2019 會計年度第一季開始反映在我們的貢獻與毛利率上。就整體產品組合而言，我們看到全面性的改善；而如 John 所說，25G 雷射的良率改善也對邁向 60% 很重要。綜合以上，我認為我們會達成——我們對達到 60% 的可視性仍然非常正面。

Our next question comes from the line of Blayne Curtis with Barclays.

下一個問題來自 Barclays 的 Blayne Curtis。

A couple more in the Data Center. I just want to understand, I think I understand how it works now. $7 million in the June quarter, is there another part of that payment in September? And I didn't know if you're willing to say what it is. And then, I guess, is the partner -- so I'm kind of curious about the customer associated with that partner or maybe, multiple customers, any color there. And I guess you'll, at some point, start shipping chips and maybe that's another way to look at it. When do you expect to be selling components to these ones.

資料中心方面再問幾個。我想我現在大概理解運作方式了。6 月季度的 700 萬美元，9 月是否還有另一部分付款？如果你們願意的話，能否說明金額是多少。另外，我也想了解與該合作夥伴相關的客戶——或可能是多個客戶——是否能提供一些資訊。然後我想，你們在某個時間點會開始出貨晶片，這或許也是另一種看法。你們預期何時會開始向這些客戶銷售元件？

Blayne, excellent. To the extent that we can't talk about it, those are the points we will. So next quarter, there is not similar revenue included. So we don't anticipate additional Data Center solutions contribution revenue, except from a GAAP basis that reverses the deferred. So you will see the reversal of revenue on a non-GAAP basis next quarter. You're correct, our bread-and-butter revenue, going forward with that customer, will be component sales at market-related prices. This payment is independent. There's no contingencies around component pricing or the like. It is at-market transaction. And those will be the first elements of increased consumption and growing the revenue. There are some other opportunities to earn additional fees with this customer. And as they become more visible, we think we'll include those in our guidance and report on them.

Blayne，很好的問題。在我們不能談的範圍內，我們會就能談的部分回答。所以下一季不會包含類似的營收。因此我們不預期會有額外的資料中心解決方案貢獻營收，除了在 GAAP 基礎上會回轉遞延項目。所以你會在下一季的 non-GAAP 基礎上看到營收回轉。你說得對，未來我們與該客戶的核心（bread-and-butter）營收將是以與市場相關的價格銷售元件。這筆付款是獨立的。它不附帶任何與元件定價或類似事項相關的或有條件。這是一筆按市價進行的交易。而這些將是提升用量、帶動營收成長的第一批要素。我們也有一些其他機會可以向該客戶賺取額外費用。當這些機會變得更清晰可見時，我們會把它們納入指引並對外說明。

Ye. Let me emphasize that last point there, Blayne. So in our guide, we don't anticipate any further payments, but we do anticipate further payments from that customer and others on an ongoing basis. But our guide does not assume any.

是。Blayne，我想強調剛才最後那一點。在我們的指引中，我們不預期會有任何進一步的付款，但我們確實預期未來會持續從該客戶以及其他客戶收到進一步付款。不過我們的指引並未假設有任何這類付款。

Maybe just a clarification, do you -- when do you expect to ship components to this partner? And is there any visibility in end customers there?

也許再確認一下，你們預期何時會開始向這個合作夥伴出貨元件？另外，對於終端客戶是否有任何能見度？

In the current quarter, which is fiscal Q2, we are shipping components.

在本季，也就是會計年度第二季，我們正在出貨元件。

Sorry -- yes.

抱歉——是的。

Sorry. Q4.

抱歉。第四季。

Timing, yes. Yes, we are shipping. And Blayne, we can't talk about the cloud service providers behind us. They're very sensitive about talking about their supply.

時程，是的。是的，我們正在出貨。而且 Blayne，我們不能談論在我們背後的雲端服務供應商。他們對於談論其供應非常敏感。

If I can just squeeze in one more. Obviously there's a lot of moving pieces on the cash flow. I'm just curious on the computer and peer minority investment, what's the status there because I saw the write-down was a lot bigger this last quarter?

如果我可以再塞進一個問題。顯然現金流有很多變動因素。我只是好奇在 computer 和 peer 的少數股權投資方面，那邊的狀態如何，因為我看到上季的減記大了很多？

So there is no -- to be specific, no write-down as related to ampere. We report our share of the LLC under SEC rules in our GAAP financial statements. And the negative contribution was in discontinued operations of $3.1 million in the quarter. We will continue to report that on a GAAP basis as a portion of that goes forward. We do not see any impairment to our carrying value. What we wrote off are, as we talked about, the exit from the LR4 business. The majority of that expense is the write-off of certain acquired intangible assets relative -- related to the FiBest acquisition back a few years ago, to partial write-down, not a full write-down because we're maintaining design capabilities and resources in place in Japan. Secondarily, the further write-down was about what I would call orphaned inventory related to the shutdown, the planned shutdown on the facility of the 3-inch indium phosphide laser fab.

所以沒有——具體來說，沒有與 Ampere 相關的減記。我們依據 SEC 規則，在 GAAP 財務報表中申報我們在該 LLC 的持份。而本季在停業部門中的負面貢獻為 310 萬美元。我們將持續以 GAAP 基礎申報，因為其中一部分會在未來持續反映。我們不認為我們的帳面價值有任何減損。我們沖銷的是，如同我們談到的，退出 LR4 業務。其中大部分費用是沖銷若干已取得的無形資產，主要——與幾年前 FiBest 收購案相關，屬於部分減記，而非全額減記，因為我們在日本仍維持設計能力與資源。其次，進一步的減記主要是我所稱的「孤兒庫存」，與關閉、計畫關閉 3 吋磷化銦雷射晶圓廠的廠房有關。

Our next question comes from the line of Tim Savageaux with Northland Capital.

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

I'd like to try to -- now that we're getting, I guess, a better sense of this $7 million of, I guess, not product revenue, right, but more of a fee, as you look at the opportunity here, maybe starting with the $10 million unit forecast for CWDM4 for calendar '19, I think we've discussed in the past taking that down to kind of a component opportunity that's in the neighborhood of $1 billion, with the agreement you have in place, with the way you're looking at the cloud opportunity now, what proportion of that $10 million would you say is reasonably addressable by MACOM directly or indirectly in calendar '19?

我想試著——既然我們對這 700 萬美元有了、我想、更清楚的理解，這不是產品營收，對吧，而更像是一筆費用；當你看這裡的機會時，也許從 2019 年曆年的 CWDM4 1,000 萬台預測開始，我想我們過去討論過把它下拆成一個大約 10 億美元規模的元件機會；以你們現有的協議、以及你們現在看待雲端機會的方式，對於 2019 年曆年這 1,000 萬台，你會說其中有多少比例是 MACOM 直接或間接能夠合理觸及的？

Good question. So the #1 choke point in our ability to address that market was our ability to yield lasers in sufficient quantity. Our cost structure is fantastic but if you can't produce them, it doesn't matter much, right? That, we feel now, is behind us. The yields continue to improve. And as I said, they hit the threshold at which it made sense to step in with both feet. I think our ability, how much the $10 million can be addressed, is a time-dimensional answer in terms of how quickly the transceiver people that we license -- because we will continue licensing people to enable several manufacturers, how quickly they can ramp to capture that. I think -- my speculation is there's a fair degree of consolidation going on in the supply base for those CWDM transceivers right now. And we'll probably exit a year from now with a fairly different structure of the industry than what currently exists. And we like to think that a very sizable portion of that exiting next year will be based upon our components and our solutions.

好問題。所以我們能否切入那個市場的第一個瓶頸，是我們能否以足夠的數量把雷射的良率做出來。我們的成本結構非常好，但如果你做不出來，那其實也沒什麼意義，對吧？我們覺得這個問題現在已經過去了。良率持續改善。而且如我所說，它們已達到一個門檻，讓我們覺得值得全力投入。至於這 1,000 萬台能觸及多少，我認為答案取決於時間維度，也就是我們授權的收發器廠商——因為我們會持續授權以支援多家製造商——他們能多快爬坡量產以掌握這個機會。我想——我的推測是，目前 CWDM 收發器的供應基礎正在發生相當程度的整併。而我們大概在一年後會看到一個與現在相當不同的產業結構。我們也希望明年整併後留下來的相當大一部分，會是以我們的元件與解決方案為基礎。

Great. If I could follow up over in the telecom side, it sounds like implicit in your guidance is a resumption in growth in telecom. Can we maybe talk about any more detail about where that's coming from? Back, it sounds like it might be a simple as kind of backhaul coming back after that pause. And can you touch on what you're seeing in China, Metro/Long-haul as well?

很好。如果我可以追問電信那邊，聽起來你們的指引隱含電信將恢復成長。我們能否談談更多細節，成長是從哪裡來的？回頭看，聽起來可能只是回程傳輸（backhaul）在暫停後回來了。也請談談你們在中國、以及都會/長途（Metro/Long-haul）方面看到的情況？

Sure. So Metro/Long-haul, from a unit standpoint, seems to have recovered back to pre-downturn levels. So it's the reason why I made the comment that the inventory correction seems to have fully played out. I think between Metro/Long-haul drivers, 2.5G PON and the 4G -- the 10-gig 4G LTE backhaul, we view those as really kind of getting back to a healthy state and a new normal. And we consider them just stable cash flow businesses, and we're pretty deeply entrenched with our share. They're very, very nice cash flow businesses, but we don't expect that they're going to grow. The growth instead is coming in the 5G fronthaul, mid-haul, backhaul. Even the growth in the Metro/Long-haul is really 5G-related, 5G backhaul is very much like our metro deployments. So as it relates to China, it's all about 5G on a go-forward basis over there. And we feel we're exceptionally well positioned because they're borrowing a lot from what we've been just talking about in data centers. Fronthaul is now 25-gig industrial temp range lasers. It's right now we have mid-haul, 100 gig, CWDM4, right now. So we feel like as China gets back from this kind of transitional year from 4G and moving into 2019 with 5G, we're going to be having pretty strong tailwinds with that build-out.

當然。所以就出貨量而言，都會/長途似乎已回升到下滑前的水準。這也是我評論庫存修正似乎已完全結束的原因。我認為在都會/長途的驅動因素、2.5G PON，以及 4G——10G 的 4G LTE 回程傳輸之間，我們認為它們確實正在回到健康狀態並形成新的常態。我們把它們視為穩定的現金流業務，而且以我們的市占而言，我們已深度卡位。它們是非常、非常好的現金流業務，但我們不預期它們會成長。成長反而來自 5G 前傳（fronthaul）、中傳（mid-haul）、回傳（backhaul）。甚至都會/長途的成長其實也與 5G 有關，5G 回傳非常像我們的都會部署。因此就中國而言，未來那邊的重點完全是 5G。而我們覺得我們的定位非常好，因為他們大量借鑑了我們剛才在資料中心所談的內容。前傳現在是 25G 工業溫度範圍雷射。而目前我們有中傳，100G、CWDM4，就在現在。所以我們覺得，當中國從這種 4G 的過渡年回到正軌、並在 2019 年進入 5G 時，我們會在這波建置中獲得相當強的順風。

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

下一個問題來自 Evercore ISI 的 C.J. Muse。

I guess first question as you look to September quarter guide, are you expecting all segments to grow sequentially? Or is that $7 million deferred in Data Center too much to see sequential growth there? And as part of that, are you including any revenues from ZTE in the next?

我想第一個問題是，當你們看 9 月季度的指引時，你們是否預期所有事業部門都會季對季成長？或者資料中心那 700 萬美元的遞延是否太多，以致於看不到季對季成長？另外，下一季的指引中是否包含任何來自中興（ZTE）的營收？

Good question. So essentially, yes, all end markets are growing, at different rates but they are at growth. Remind everybody that, that number is -- has remained the same in terms of a guide, even though we exited 2 quarters ago, $12 million with LR4 revenue. So I highlight that because the underlying growth, exit that business is pretty solid and continues to be improving. And the second question is -- of what?

好問題。基本上，是的，所有終端市場都在成長，成長速度不同，但都在成長。提醒大家，那個數字——作為指引一直維持不變，儘管我們在兩季前退出時，LR4 營收有 1,200 萬美元。我之所以強調這點，是因為在退出該業務後，底層成長相當扎實，而且持續改善。第二個問題是——關於什麼？

Did you include your ZTE in the guide?

你們在指引中有包含中興（ZTE）嗎？

Yes. So we're taking a very conservative and minimal approach to the contribution of ZTE in our fiscal fourth quarter.

有。所以我們對中興在我們會計年度第四季的貢獻採取非常保守且最低限度的估計方式。

So ZTE is engaging very aggressively in trying to get their supply chain rebuilt. It's just fits and starts. They can't go from a standing stop to instant on. There is some revenue, actually, in the -- but it's -- it started de minimis and it remains de minimis in terms of grand scheme of things. I think more importantly is seeing their demand resume for our customers. Again, we sell to a lot of OSA customers and subassemblies that ZTE consumes. And basically what happened, just to provide some more color on my scripted remarks, because the carrier saw a fairly quick resolution on the denial order, they seem to slow-roll things to be able to preserve ZTE shares. They didn't want them to come out of this impaired with the share reallocated to their competitors. So it kind of moderated the demand over in China for 90 days. But right now, it's back on and back on hard. It's just without orders in the backlog, we don't guide, without clear line of visibility. So as Bob said, I think that's a conservative stance we've taken. It remains to be seen if there's any tailwinds that come from it, but it's still early days yet. I mean, they're still trying to sort through. They've got a lot of suppliers. They're meeting something like 10 a day. So it's fairly chaotic over there right now.

因此，中興正在非常積極地努力重建其供應鏈。只是進展時好時壞、斷斷續續。他們不可能從完全停擺一下子就立刻恢復運轉。實際上確實有一些營收——但它——一開始微不足道，而且就整體大局而言仍然微不足道。我認為更重要的是看到我們客戶的需求正在恢復。同樣地，我們向許多 OSA 客戶以及中興會使用的子組件供貨。基本上發生的情況是——為了對我事先準備的發言再補充一些背景——由於電信營運商看到拒絕令相當快就獲得解決，他們似乎放慢推進節奏，以便維持中興的市占。他們不希望中興在這件事之後受損，導致市占被重新分配給競爭對手。因此，這在中國那邊的需求在 90 天內被某種程度地抑制了。但現在，它又回來了，而且回來得很猛。只是因為訂單沒有在積壓訂單中，我們在沒有清晰能見度的情況下不會提供指引。所以如 Bob 所說，我認為這是我們採取的保守立場。是否會因此帶來任何順風仍有待觀察，但現在仍是早期階段。我的意思是，他們仍在努力梳理各項事務。他們有很多供應商。他們每天大概會見到 10 家左右。所以那邊目前相當混亂。

That's very helpful. And as a follow-up, as you think about shutting down that second laser line, pulling L4 -- or lower margin LR4 out of the mix, what are you thinking in terms of cash flow breakeven revenue run rate to date?

這非常有幫助。另外追問一下，當你們考慮關停第二條雷射產線、把 L4——或較低毛利的 LR4 從產品組合中移除時，你們目前對於現金流損益兩平所需的營收運行水準（run rate）是怎麼想的？

So I can give you a couple other breakevens, real quick. That one you've got to do a little thinking in it. So look, our EBITDA is growing. The difference, to answer that question, is really the timing and the amount of CapEx per quarter. We have another quarter here that, again, as we pointed out, the EFT agreement coming online as we continue to expand production of the, again, power transceivers, requires us to make some capital investment. So it's really on the capital side. And I think if we reduce that from the $13 million level expected next quarter, again, that's really the difference between cash flow breakeven on a free cash flow basis. But we also are improving the contribution from EBITDA, and we're very, very focused on improving the working capital management and so forth. So I don't have a specific number to point that out, but I think you'll see our free cash flow improving across the line, with our revenue growth, our improved gross margins and EBITDA and operating margins, going forward here.

我可以很快再給你幾個其他的損益兩平指標。至於你問的那個，需要稍微算一下。你看，我們的 EBITDA 正在成長。要回答那個問題，差異主要在於每季資本支出（CapEx）的時點與金額。我們接下來還有一季——如同我們指出的——隨著 EFT 協議上線、我們持續擴大（再次強調）功率收發器的產量，這需要我們做一些資本投資。所以關鍵其實在資本端。我認為如果我們把預期下季約 1,300 萬美元的水準降下來——再次強調——那基本上就是自由現金流口徑下現金流損益兩平的差別所在。但同時我們也在提升 EBITDA 的貢獻，而且我們非常、非常專注於改善營運資金管理等等。所以我沒有一個特定數字可以直接指出，但我認為你會看到，隨著營收成長、毛利率改善、EBITDA 與營業利益率提升，我們的自由現金流將全面改善，往後會更明顯。

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 just want to look at the R&D, I think, take a little step-up in the quarter. Is there more than unusual elements in that step-up? And what should we think going forward in terms of, just in general, your R&D efforts should be?

我想看看研發費用，我認為本季有小幅上升。這個上升是否有任何不尋常的因素？以及往後就整體而言，你們的研發投入應該如何看待？

Mark, good observation. And we -- these -- some of these increases here this quarter is what I would describe as variable costs, as we come on -- we continue to have new products and new applications, including things as simple as different packaging solutions. And before their products release to production, those expenses go through our R&D line. So there is a portion of that R&D expense each quarter, it has grown over recent quarters that is material related but variable in terms of its timing and the amount. So therefore, as you see in the guide, we see sort of that number for our operating expenses, sort of stabilizing from here going forward.

Mark，你觀察得很好。而我們——本季這些增加中，有一部分我會形容為變動成本；因為我們持續導入新產品與新應用，包括像是不同的封裝解決方案這麼基本的事情。在這些產品釋出到量產之前，相關費用會先走研發科目。因此，每一季的研發費用中有一部分，近幾季已經成長到相當顯著，這部分與材料相關，但在時點與金額上具有變動性。所以你在我們的指引中會看到，我們認為營業費用的那個數字，從現在起往後大致會趨於穩定。

Stabilizing at that number or that percent?

是穩定在那個金額，還是那個百分比？

Around that level, yes.

大致在那個水準，是的。

Our next question comes from Tore Svanberg with Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

This is Jeremy Kwan for Tore. Just to follow up on the earlier CapEx question, can you help us understand how much of that $13 million is directly towards your expanding laser capacity, and maybe also how we can look at it, maybe, a little bit longer term, 12, 18 months out?

我是 Jeremy Kwan，代 Tore 提問。延續先前關於資本支出的問題，你能否幫我們理解那 1,300 萬美元中有多少是直接用於擴充雷射產能？另外，從更長期的角度，例如 12 到 18 個月後，我們應該如何看待？

Yes, we can. And most of the -- there's 2 major -- 3 major elements that are consuming CapEx. We have, number one, as people know, we are definitely expanding our manufacturing capability here in Lowell by what is in process and soon to be completed over the next 3 or 4 months in extension of our facilities and expansion of our facilities here in Lowell. We're adding 60,000 square feet, that is a build-to-lease, build-to-suit facility, although we have decided to invest first, in short term, an actual portion of the capital expenditure versus leasing it out over time. Our rates and costs of the returns there are better to fund it upfront today than it is to lease it over the 20-year lease period or longer. The second area is in test equipment. As we continue to advance in, in these new evolving technologies and things at higher speed, higher performance, different materials, we are buying more and more test equipment across the board. And then finally, the third portion and the biggest portion is expanding the production capability, both in Lowell as well as some of our subcontractors, as well as we're putting additional equipment, to be in a position to have the capacity to meet future demand.

可以。而其中主要——有 2 個主要——3 個主要項目在消耗資本支出。第一，如大家所知，我們確實正在擴充位於 Lowell 的製造能力；目前正在進行中，並將在未來 3 到 4 個月內完成我們在 Lowell 的廠房延伸與擴建。我們將新增 60,000 平方英尺，這是一個「興建後出租／量身打造」（build-to-lease, build-to-suit）的設施；不過我們已決定在短期內先投入一部分實際資本支出，而不是隨時間以租賃方式攤提。以目前的利率與報酬成本來看，今天先行出資的回報優於在 20 年或更長的租期內用租賃方式支付。第二個領域是測試設備。隨著我們持續推進這些新興技術演進，以及更高速、更高性能、不同材料等方向，我們正在全面購置越來越多的測試設備。最後第三部分也是最大的一部分，是擴充生產能力：包括 Lowell 以及我們的一些分包商；同時我們也在增添額外設備，以便具備滿足未來需求的產能。

And can you talk about how long you may have this elevated spending?

你能談談這種較高的支出可能會持續多久嗎？

So our original target in terms of CapEx was 5% of revenue. We think because of the cyclical issues in the telecom space, specifically, that is depressing our revenue, as we grow, we'll be back to the 5% level, 5%, 6% level. So this is sort of an anomaly.

我們原先對資本支出的目標是營收的 5%。我們認為，由於電信產業的循環性問題，特別是這正在壓抑我們的營收；隨著我們成長，我們會回到 5% 的水準，約 5% 到 6% 的水準。所以這算是一種異常狀況。

Right. I think the scenario where that would not be the case would basically be exceeding expectations on top line growth. Obviously, if you get more growth, then you have more opportunity, you have to feed that with more CapEx. So I think that's the problem with what we have.

對。我認為唯一不會如此的情境，基本上就是營收端成長超出預期。很明顯，如果你有更多成長，就有更多機會，而你必須用更多資本支出來支撐它。所以我想這就是我們面臨的問題。

Yes. And again, we're also getting back to our target operating model, which would generate close to 30% operating margin. So EBITDA would be higher on the first step than it is today.

是的。而且再次強調，我們也正在回到我們的目標營運模型，該模型將產生接近 30% 的營業利益率。因此，EBITDA 在第一步就會比今天更高。

Yes. So it will provide some color on what's kind of fueling that CapEx. So we're simultaneously ramping things like 25-gig lasers for Data Centers. We also have the associated transceiver TOSA solution stuff that is taking capital equipment. We've got the OpEx coming behind the lasers. We've got the GaN for base stations. We've got FEMs for base stations. And believe it or not, now we have panels receiving production orders, active antenna panels. So as you see the upside associated with this 25-gig laser breakthrough in terms of getting now to ramp, we're feeding very similar things, very high-quality customers. And frankly, we have to feed the CapEx to be able to scale that production.

是的。因此，這將提供一些背景，說明是什麼在推動這些資本支出（CapEx）。所以我們同時在加速推進像是用於資料中心的 25G 雷射。我們也有相關的收發器 TOSA 解決方案等，這些都需要資本設備投入。雷射之後還會帶來營運支出（OpEx）。我們有用於基地台的 GaN。我們有用於基地台的 FEM。而且信不信由你，現在我們也有面板在接到生產訂單，也就是主動式天線面板。所以當你看到這項 25G 雷射突破帶來的上行空間、並且現在開始放量爬坡時，我們正在供應非常類似的產品給非常高品質的客戶。坦白說，我們必須投入資本支出，才能擴大產能規模。

Our next question comes from the line of Harlan Sur with JPMorgan.

下一個問題來自摩根大通（JPMorgan）的 Harlan Sur。

Can you, guys, just give us an update on your L-PIC solution? I know it's been qualified by several customers, can you just give us an update on these quals, any line of sight in terms of design wins and timing of production and shipment? And I assume most of this have been focused on 100 gig, maybe you can give us some status as well on your 200 and 400 gig L-PIC development activities?

各位能否就你們的 L-PIC 解決方案給我們一個最新進度？我知道它已經通過多家客戶的認證（qualified），能否更新一下這些認證的進展、在設計導入（design wins）以及量產與出貨時程方面是否已有可見度？另外我假設目前多數聚焦在 100G，也請你們分享一下 200G 與 400G L-PIC 的開發進度狀況？

Yes. I mean, kind of, one of our themes now, as you might have picked up, is we're trying to focus in the short-term results and the short-term outlook, trying to stay away from talking about the futures. But I mean, the way I described the L-PIC situation is we have achieved similar yields improvements and breakthroughs for the L-PIC as with the lasers. And then the difference is where the lasers are within our internal factories, and we can talk about those internal factories. We actually source the PIC wafers from global foundries. So what's it really going to gate the ramp of the integrated version of the solutions business, which is the L-PIC, they'll be gated by global foundries' ability to ramp over this year and next. And that's where I am not really comfortable talking about their timing from a supply chain standpoint. But the good news is this, the way to think about the L-PIC is the same data center solutions that we've greased the skids with today, the transceivers and the TOSAs and ROSA designs, the L-PIC version, that also just drops into that same supply chain. And it's just a more integrated lower-cost, more manufacturable improvement to the same solutions model. So it's not like we have to wait for the L-PIC to be ramping our Data Center solutions business. Certainly, the L-PIC is further disruptive in terms of on costs, in manufacturing costs and manufacturability, but there's a lot of a way to go before we're limited by L-PIC availability. But everything -- improvements, everything anticipated as expected. It's all a matter now of just getting the PIC wafers scaled in production.

是的。我的意思是，正如你可能已經聽出來的，我們目前的一個主軸是聚焦在短期成果與短期展望，盡量避免談太多未來的事情。但我對 L-PIC 現況的描述是：我們在 L-PIC 上也達成了與雷射相似的良率改善與突破。差別在於雷射是在我們自有工廠內生產，因此我們可以談論那些內部工廠的狀況。而 PIC 晶圓我們是向全球晶圓代工廠採購。所以，真正會限制整合版解決方案業務（也就是 L-PIC）放量爬坡的，將取決於全球晶圓代工廠在今年與明年的擴產能力。而從供應鏈角度來看，我不太方便去談他們的時程。但好消息是：理解 L-PIC 的方式是，它會進入我們目前已經打通的同一套資料中心解決方案供應鏈，也就是收發器以及 TOSA、ROSA 的設計；L-PIC 版本同樣可以直接導入那條供應鏈。它只是同一套解決方案模式中，更高度整合、成本更低、且更容易製造的一項改良。因此，我們並不是必須等到 L-PIC 放量，資料中心解決方案業務才能爬坡。當然，L-PIC 在成本、製造成本與可製造性方面更具顛覆性，但在我們會因 L-PIC 供應不足而受限之前，還有很長一段路要走。不過一切——改善、各項進展——都如預期。現在就只是把 PIC 晶圓的量產規模拉上來的問題。

Great. You guys have a really nice, high-margin, kind of, sticky catalog business as part of your industrial segment. It's also very diversified. I assume you're also seeing strong demand pull there as well. Can you just give us a sense of what types of applications are driving the demand? And do you think that the broad catalog business is going to contribute to the sequential growth as well on a go-forward basis?

很好。你們在工業部門中有一個非常不錯的、高毛利、且相對黏著度高的型錄（catalog）業務。而且也非常多元化。我想你們在那邊也看到強勁的需求拉動。能否請你們談談是哪些類型的應用在推動需求？以及你們是否認為這個廣泛的型錄業務在未來也會對營收的季增成長有所貢獻？

It's a fantastic question. I mean, one of nicest feelings is that core catalog business, first of all, the last remaining competitors are undergoing consolidation. And we're literally turning out to be the last guy standing in some of this stuff, which is a very nice place to be. There is a general surge and lift in demand for, what I would call, legacy programs, where we were designed in long ago, and then doing retrofits and upgrades in the field. So there's a rising tide associated with that catalog business. But on top of that, the 2 things that really are amazing is there's actually some new applications, potentially very substantial applications for use of some of this mature technology that will be continuing to fuel growth beyond just the surge. And then our antenna, active antenna business, is really just an assembled -- like the Data Center solutions business that we're just talking about, all based upon the same stuff. It's all based upon our core RF technologies, highly-proprietary. When we talk about an antenna, AlGaAs was perfected in those antennas. It's all about the antenna reception, whether it's for a radar application or a base station application, it's the same challenge and the same solution. So that Industrial and Defense business may be -- it's shaping up to potentially grow as fast as our Data Center business and the telecom and 5G gen channels. It's anything but a drag on our growth in our portfolio, which is -- it's great. When your core business tends to grow like that, that's special.

這是個很棒的問題。我的意思是，其中一個最令人愉快的感受是：首先，那個核心型錄業務的最後幾個競爭對手正在進行整併。而我們在其中一些領域，幾乎真的成了最後的倖存者，這是一個非常好的位置。整體而言，對我所稱的「既有（legacy）專案」需求正在普遍上升——也就是我們很久以前就被設計導入，現在在現場進行改裝（retrofit）與升級。因此，這個型錄業務正受惠於一波需求的上升潮。但除此之外，另外兩件真正令人驚豔的事是：其實有一些新的應用，可能是非常可觀的新應用，會使用這些成熟技術，並將在不僅僅是這波需求上升之外，持續推動成長。另外，我們的天線、主動式天線業務，本質上就是組裝型業務——就像我們剛才談到的資料中心解決方案業務一樣，全部都建立在相同的基礎之上。它完全基於我們核心的 RF 技術，且高度專有。當我們談到天線時，AlGaAs 在那些天線中已被完善。重點在於天線接收，不論是雷達應用或基地台應用，面臨的是同樣的挑戰與同樣的解決方案。因此，工業與國防業務可能——看起來有機會成長得跟我們的資料中心業務、以及電信與 5G 世代通路一樣快。它絕對不是我們產品組合成長的拖累——這很棒。當你的核心業務能以那樣的速度成長時，那是很特別的。

And I'm showing no further questions in queue at this time. I'd like to turn the call back to management for any closing remarks.

目前我這邊顯示沒有更多排隊中的提問。我想把電話交回給管理層做結語。

Great. Before closing out today's call, I want to mention that we'll be attending the Oppenheimer Technology, Internet & Communications Conference on August 7 in Boston, as well as Jefferies Semis, Hardware & Communications Infrastructure Summit on August 28 and 29, in Chicago. If you'd like to arrange a meeting at one of these 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，我想提到我們將出席 8 月 7 日在波士頓舉行的 Oppenheimer Technology, Internet & Communications Conference，以及 8 月 28 日與 29 日在芝加哥舉行的 Jefferies Semis, Hardware & Communications Infrastructure Summit。如果您希望在其中一個活動安排會議，請寄電子郵件至 ir@macom.com 與我們聯繫。以上為今天的結語。接線員，您現在可以中斷通話。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program, and you may now disconnect. Everyone, have a great day.

各位女士先生，感謝您參與今天的電話會議。本次議程到此結束，您現在可以中斷連線。祝各位有美好的一天。