MACOM Technology Solutions Holdings, Inc. (MTSI) 2018 Q4 法說會逐字稿

Good afternoon, and welcome to MACOM's Fiscal Fourth Quarter 2018 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, November 13, 2018.

下午好，歡迎參加 MACOM 2018 會計年度第四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 11 月 13 日，星期二）錄音。

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

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. Good afternoon, everyone, and welcome to MACOM's Fiscal Fourth 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。各位下午好，歡迎參加 MACOM 2018 會計年度第四季財報電話會議。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 have not yet received a copy of the earnings press release, you may obtain a copy on MACOM's website at www.macom.com, under the Investor Relations section.

若您尚未收到本次財報新聞稿，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'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. For more detailed discussion of 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 annual report on Form 10-K filed November 14, 2018, and its quarterly reports on Form 10-Q filed in 2018.

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，並受特定風險與不確定性影響。由於實際結果可能與今日討論內容存在重大差異，MACOM 主張適用《1995 年私人證券訴訟改革法案》中關於前瞻性陳述的安全港保護。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 11 月 14 日提交的 Form 10-K 年度報告，以及 2018 年提交的 Form 10-Q 季度報告。

Any forward-looking statements represent management's views only as of today, November 13, 2018, and MACOM assumes no obligation to update these statements in the future.

任何前瞻性陳述僅代表管理層截至今日（2018 年 11 月 13 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.

公司新聞稿以及本次電話會議期間管理層的陳述，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）。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.

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.

那麼，我現在把電話交給 John，請他就本季發表評論。

Thanks, Steve. Welcome, everyone, and thanks for joining us today. I'll be in today's call with an overview of our fourth fiscal quarter 2018 results. I will 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 by discussing MACOM's key end quarter milestones and growth drivers for the year ahead and close the call with guidance for the fiscal first quarter of 2019.

謝謝你，Steve。歡迎各位，感謝今天加入我們。我將在今天的電話會議中先概述我們 2018 會計年度第四季的業績。接著我會把電話交給我們的財務長 Bob McMullan，由他更詳細地檢視我們的財務表現。我將以討論 MACOM 本季末的關鍵里程碑與未來一年的成長動能作為今天事先準備發言的結尾，並以 2019 會計年度第一季的財測結束本次電話會議。

As I mentioned last quarter, we're squarely fixated on returning to our target financial model of 60% gross margin, 30% operating margin and 60% free cash flow. Fiscal Q4 was a solid step towards reaching that goal.

如我在上季所提到的，我們明確聚焦於回到我們的目標財務模型：60% 毛利率、30% 營業利益率，以及 60% 自由現金流。會計年度第四季是朝該目標邁進的扎實一步。

Jumping right into the numbers, revenue for the fiscal fourth quarter was $151 million, up 4% sequentially, with adjusted gross margin of 55% and adjusted earnings of $0.16 per diluted share. During the fiscal fourth quarter, across all end markets, product revenue was up 10% sequentially, excluding $7 million of services revenue in the prior quarter. Operating margins were up 90 basis points quarter-on-quarter. Earnings per share was up 23% sequentially, and we generated $11 million in free cash flow.

直接進入數字部分，會計年度第四季營收為 1.51 億美元，季增 4%，經調整毛利率為 55%，經調整後稀釋每股盈餘為 0.16 美元。在會計年度第四季，涵蓋所有終端市場，若排除前一季 700 萬美元的服務營收，產品營收季增 10%。營業利益率較上季提升 90 個基點。每股盈餘季增 23%，我們並產生 1,100 萬美元的自由現金流。

I'd like to take a moment to thank the team for a quarter of solid execution. Q4 wraps up a transitional year for MACOM. We entered the year at the trough of a major cyclical downturn in China, which had a pronounced impact on a number of our served markets. Over the course of fiscal 2018, demand progressively recovered and our revenue and margins rebounded from trough levels. Entering Q1 of fiscal 2019, we believe that this recovery is now complete.

我想花點時間感謝團隊在本季的穩健執行。第四季為 MACOM 的轉型年度畫下句點。我們在年初正處於中國一波重大景氣循環下行的谷底，對我們所服務的多個市場造成明顯影響。在 2018 會計年度期間，需求逐步復甦，我們的營收與毛利率也自谷底水準回升。進入 2019 會計年度第一季，我們相信這波復甦現已完成。

I'll turn it over to Bob for a more in-depth review of our fiscal fourth quarter financials.

接下來我把電話交給 Bob，請他更深入檢視我們 2018 會計年度第四季的財務表現。

Thank you, John, and good afternoon, everyone. Before I review MACOM's fiscal fourth quarter results and financial position, a couple of summary points.

謝謝你，John，各位下午好。在我檢視 MACOM 會計年度第四季的業績與財務狀況之前，先說幾點摘要。

Our fiscal 2018 non-GAAP operating results: Revenue, $577.4 million; gross margin, 54%; and EPS, $0.52. We believe the investments made in fiscal year 2018 leaves us well positioned to meet customer and market demand over this and future fiscal years.

我們 2018 會計年度的非 GAAP 營運結果如下：營收 5.774 億美元；毛利率 54%；每股盈餘（EPS）0.52 美元。我們相信，2018 會計年度所進行的投資，使我們具備良好定位，以滿足本會計年度及未來會計年度的客戶與市場需求。

Next, we receive $7 million in full payment in fiscal Q4 of the non-GAAP revenue in fiscal Q3. Despite customer acceptance for contractual terms and cash payments, we did not meet the new technical requirements for GAAP revenue recognition in fiscal Q4.

其次，我們在會計年度第四季收到會計年度第三季非 GAAP 營收所對應的 700 萬美元全額付款。儘管客戶已依合約條款完成驗收並支付現金款項，但我們在會計年度第四季未能符合 GAAP 營收認列的新技術要求。

Now to fiscal Q4, which taken as a whole from a financial metrics perspective delivered much improved results. Starting with some key financial metrics. Cash flow from operations and free cash flow were both positive. Cash flow from operations totaled $25 million and free cash flow, $11 million after $14 million of capital expenditures in the fiscal fourth quarter. Total cash and cash equivalents increased by $10 million sequentially, now totaling a $193 million. Non-GAAP revenue in fiscal Q4 was $151 million, down 9% year-over-year from $166 million and an increase from $145 million or 4% sequentially.

接著談會計年度第四季，整體而言，從財務指標角度看，呈現顯著改善的結果。先從幾項關鍵財務指標開始。營運活動現金流與自由現金流皆為正值。會計年度第四季營運活動現金流合計 2,500 萬美元；在該季資本支出 1,400 萬美元後，自由現金流為 1,100 萬美元。現金及約當現金較上季增加 1,000 萬美元，目前合計為 1.93 億美元。會計年度第四季非 GAAP 營收為 1.51 億美元，較去年同期的 1.66 億美元年減 9%，並較上季的 1.45 億美元增加 4%。

To dissect these numbers further, for those who may not be familiar with MACOM's recent strategic actions, year-over-year revenue was essentially flat after adjusting for fiscal fourth quarter '17 revenues from our LR4 Optical sub-assembly business, which we exited in the fiscal Q3 2018. Revenue in fiscal Q4 grew $6 million or more than 4% sequentially. Revenue was negatively impacted in fiscal Q4 by the U.S. Department of Commerce denial order issued in August after we provided our fiscal fourth quarter guidance, prohibiting MACOM from fulfilling orders from Chinese aerospace customers for components that were not previously subject to export control before this recent denial order, resulting in revenues below the midpoint of our guidance. This denial remains in effect and impacts quarterly revenue in the range of $2 million to $4 million. We expect that it will have a continued impact as long as it is in effect.

為進一步解析這些數字，對於可能不熟悉 MACOM 近期策略行動的各位而言，在調整我們於 2018 會計年度第三季退出的 LR4 光學次組裝業務所帶來的 2017 會計年度第四季營收後，年對年營收基本上持平。會計年度第四季營收較上季增加 600 萬美元，或超過 4%。會計年度第四季營收受到負面影響，原因是美國商務部於 8 月發布拒絕令（在我們提供會計年度第四季財測之後發布），禁止 MACOM 向中國航太客戶履行訂單，涉及在該次拒絕令發布前並未受出口管制的元件，導致營收低於我們財測區間的中點。該拒絕令仍然有效，並使每季營收受到約 200 萬至 400 萬美元的影響。我們預期只要該命令仍然有效，就會持續造成影響。

Revenue by end markets. Telecom was $53 million and 35% of total revenue, down 19% year-over-year but up 8% after adjusting for the exited LR4 Optical sub-assembly revenue. Data center was $46 million and 30% of total revenues, down 3% year-over-year, and industrial and defense was $52 million and 35% of total revenue, essentially flat year-over-year. Sequentially, telecom was up 5%, datacom was flat and industrial and defense, up 8%.

按終端市場劃分的營收如下。電信（Telecom）為 5,300 萬美元，占總營收 35%，年減 19%；但在調整已退出的 LR4 光學次組裝營收後，則成長 8%。資料中心（Data center）為 4,600 萬美元，占總營收 30%，年減 3%；工業與國防（Industrial and defense）為 5,200 萬美元，占總營收 35%，年對年基本持平。就季對季而言，電信成長 5%，資料通訊（Datacom）持平，工業與國防成長 8%。

Non-GAAP gross profit and gross margin in fiscal Q4 was $83 million and rounding to 55% of revenues, respectively, compared to $97 million and 58% of revenues, respectively, year-over-year and $81 million and 56%, respectively, on a sequential basis.

本會計年度第四季的非 GAAP 毛利與毛利率分別為 8,300 萬美元與約占營收 55%，相較於去年同期分別為 9,700 萬美元與占營收 58%，以及相較於前一季分別為 8,100 萬美元與 56%。

Loss of revenue to the Chinese aerospace customers affected gross margin mix.

對中國航太客戶的營收流失影響了毛利率組合。

In terms of operating expenses. Total non-GAAP operating expenses were $64 million compared to $59 million year-over-year and $65 million sequentially. Adjusted operating expenses were down approximately $1 million or 1% sequentially. Adjusted R&D and SG&A expenses were $41 million and $23 million, respectively, in fiscal Q4.

就營業費用而言。非 GAAP 營業費用總額為 6,400 萬美元，相較於去年同期為 5,900 萬美元，較前一季為 6,500 萬美元。調整後營業費用較前一季約減少 100 萬美元或 1%。本會計年度第四季調整後研發費用與銷售、一般及行政（SG&A）費用分別為 4,100 萬美元與 2,300 萬美元。

Non-GAAP income from operations and operating margin were $19 million and 12% of revenues, down 50% in dollars and down 46% as a percentage basis, respectively, year-over-year, and up 13% in dollars and up 8% on a percentage basis, respectively, sequentially.

非 GAAP 營業利益與營業利益率分別為 1,900 萬美元與占營收 12%；相較去年同期，金額分別下降 50%，以百分比計分別下降 46%；相較前一季，金額分別上升 13%，以百分比計分別上升 8%。

Net interest expense was up a $100,000 sequentially. Our normalized non-GAAP income tax rate in fiscal Q4 continued at 8%. Our GAAP effective tax rate was negative 14% for the fiscal fourth quarter. As to cash taxes, we had net payments of approximately a $100,000.

淨利息費用較前一季增加 10 萬美元。本會計年度第四季我們的常態化非 GAAP 所得稅率維持在 8%。本會計年度第四季我們的 GAAP 有效稅率為負 14%。就現金稅而言，我們的淨支付約為 10 萬美元。

Our fiscal Q4 non-GAAP net income and EPS were $11 million and $0.16 per fully diluted share, respectively, down from $30 million and $0.46 year-over-year and up from fiscal Q3 non-GAAP net income of $9 million and EPS was $0.13.

本會計年度第四季非 GAAP 淨利與每股盈餘（EPS）分別為 1,100 萬美元與每股 0.16 美元（完全稀釋後），相較去年同期的 3,000 萬美元與每股 0.46 美元下降，並較本會計年度第三季非 GAAP 淨利 900 萬美元、EPS 0.13 美元上升。

Net income was down 65% year-over-year but up 23% sequentially. Non-GAAP EPS was down 65% year-over-year, but up 23% sequentially. The share count used to calculate the fiscal fourth quarter non-GAAP EPS was 65.9 million fully diluted shares.

淨利較去年同期下降 65%，但較前一季上升 23%。非 GAAP EPS 較去年同期下降 65%，但較前一季上升 23%。用於計算本會計年度第四季非 GAAP EPS 的股數為 6,590 萬股（完全稀釋後）。

Adjusted EBITDA or earnings before interest, taxes, depreciation and amortization was $26 million, down 45% from $47 million year-over-year, but up 8% from $24 million sequentially. Note, fiscal Q1 2018 was the low point for the non-GAAP revenue and EPS. Year-over-year comparisons should turn the corner to reflect positive growth.

調整後 EBITDA（息稅折舊攤銷前盈餘）為 2,600 萬美元，較去年同期的 4,700 萬美元下降 45%，但較前一季的 2,400 萬美元上升 8%。請注意，2018 會計年度第一季是非 GAAP 營收與 EPS 的低點。與去年同期的比較應會開始轉向，反映正向成長。

Moving to cash flow. As I mentioned, GAAP cash flow from operations was $25 million compared to our fiscal 2017 Q4 of $12 million and $100,000 in fiscal Q3. Improved operating income and working capital management contributed to this $25 million increase. After deducting capital expenditures, adjusted free cash flow was positive of $11 million compared to $7 million in fiscal Q4 of 2017, and up from negative $13 million sequentially.

接著談現金流。如我先前提到，GAAP 營運活動現金流為 2,500 萬美元，相較於 2017 會計年度第四季的 1,200 萬美元，以及本會計年度第三季的 10 萬美元。營業利益改善與營運資金管理促成了這 2,500 萬美元的提升。扣除資本支出後，調整後自由現金流為正 1,100 萬美元，相較於 2017 會計年度第四季的 700 萬美元增加，並較前一季的負 1,300 萬美元改善。

Capital expenditures in fiscal Q4 were $14 million or 9% of revenues, essentially flat sequentially. Depreciation expense was $7 million, essentially flat sequentially.

本會計年度第四季資本支出為 1,400 萬美元，約占營收 9%，較前一季基本持平。折舊費用為 700 萬美元，較前一季基本持平。

Now to MACOM's balance sheet numbers. At fiscal fourth quarter-end, our cash, cash equivalents and short-term investments were $193 million, up from $183 million sequentially. Accounts receivable were up $97 million, down from $101 million sequentially. Day sales outstanding was improved 59 days, down from 64 days sequentially.

接下來是 MACOM 的資產負債表數字。截至本會計年度第四季季末，我們的現金、約當現金與短期投資為 1.93 億美元，較前一季的 1.83 億美元增加。應收帳款為 9,700 萬美元，較前一季的 1.01 億美元下降。應收帳款週轉天數改善至 59 天，較前一季的 64 天下降。

Inventories were $123 million, flat sequentially. Inventory turns were flat at 2.2x. Days inventory were 163 days compared to 178 days sequentially.

存貨為 1.23 億美元，較前一季持平。存貨週轉率持平於 2.2 倍。存貨天數為 163 天，相較前一季為 178 天。

Long-term debt was $687 million inclusive of capital leases. Long-term debt is termed with minimum annual principal repayments until maturity in May 2024, and covenant life. We also have a $160 million of availability in an undrawn credit line maturing in May 2021.

長期負債為 6.87 億美元（含資本租賃）。長期負債依條款規定在 2024 年 5 月到期前每年最低償還本金，並受契約條款約束。我們另有一筆 1.6 億美元的未動用授信額度，將於 2021 年 5 月到期。

Back to you, John.

交給你了，John。

Thanks, Bob. Before discussing our secular growth opportunities, we have a couple of noteworthy milestones since our last earnings call that I'd like to cover.

謝謝，Bob。在討論我們的長期結構性成長機會之前，自上次財報電話會議以來有幾個值得注意的里程碑，我想先說明。

To begin, I'm pleased to announce that we've concluded our settlement of the Infineon litigation regarding ownership rights of GaN on Silicon intellectual property. Under the terms of the agreement, Infineon has assigned ownership to MACOM to patents that were under dispute for all fields of use. We have in turn agreed to license the patents back to Infineon, but they're restricted from selling GaN on Silicon RF-base station products in production quantities until 2021. I'll explain the significance of this later in the call.

首先，我很高興宣布，我們已就與 Infineon 之間關於矽基氮化鎵（GaN on Silicon）智慧財產權所有權的訴訟達成和解並完成結案。依協議條款，Infineon 已將先前在所有使用領域中具爭議的專利所有權移轉給 MACOM。我們也同意將該等專利回授權給 Infineon，但其在 2021 年之前不得以量產規模銷售矽基氮化鎵 RF 基地台產品。我會在稍後的電話會議中說明其重要性。

Next, we continued the controlled production ramp of our 25-gig lasers, which contributed to our data center sales growth in Q4. This quarter, we'll build upon that progress as we continue to scale manufacturing output to meet a very robust demand profile for 2019. It's worth noting that total manufacturing cycle times for this type of laser from epitaxial wafer orders through final tests take 7 months from start to finish, so it will take multiple quarters to ramp revenue fully as material flows through our production models.

接著，我們持續對 25G 雷射進行受控的量產爬坡，這也帶動了我們第四季資料中心銷售成長。本季我們將在此進展上再接再厲，持續擴大製造產出，以滿足 2019 年非常強勁的需求態勢。值得注意的是，這類雷射從外延晶圓下單到最終測試的整體製造週期時間，從頭到尾需要 7 個月，因此隨著材料在我們的生產模型中流轉，營收要完全爬坡將需要多個季度。

Next, as we've gone throughout the year pruning our portfolio and consistent with our previously announced plans, we took actions towards the closure of the Ithaca fab and divested the Lawrence HiRel facility in fiscal Q4.

另外，隨著我們在全年持續精簡產品組合，並依照先前公布的計畫，我們在本會計年度第四季採取行動推進關閉 Ithaca 晶圓廠，並出售 Lawrence HiRel 廠區。

In telecom, we're seeing resumed core count growth in Metro/Long-haul drivers and continuing global deployments in PON and fiber backhaul. In Metro/Long-haul in particular, we're seeing improved demand trends across our customer base. Forecasts for coherent port shipments in 2019 are healthy, and we're in the midst of securing design wins and share allocations in next-generation coherent applications with 64-gigabaud drivers, which carry higher ASPs out of the gate. Based on expected competitive developments in this market, we feel confident in maintaining or improving our share position in fiscal 2019.

在電信領域，我們看到都會區/長途（Metro/Long-haul）驅動器的核心數成長恢復，同時 PON 與光纖回傳（fiber backhaul）在全球持續部署。尤其在都會區/長途方面，我們在整體客戶群中看到需求趨勢改善。對於 2019 年相干（coherent）埠出貨量的預測相當健康，而我們正積極在採用 64Gbaud 驅動器的下一代相干應用中爭取設計導入（design wins）與市占分配；這些產品一開始就具備較高的 ASP。基於我們對該市場競爭態勢發展的預期，我們有信心在 2019 會計年度維持或提升我們的市占地位。

In Q4, we supported our customers' success at a PAM-4 Plugfest with our single-lambda DSP PHY solution. The Plugfest was a major milestone for industry adoption of PAM-4, ensuring interoperability of different vendors' transceivers with various switch hardware before their release into production.

在第四季，我們以單波長（single-lambda）DSP PHY 解決方案，於 PAM-4 Plugfest 活動中支援客戶的成功。該 Plugfest 是產業採用 PAM-4 的重要里程碑，可在產品導入量產前，確保不同供應商的收發器能與各式交換器硬體互通。

But before turning it over to questions, I want to provide some additional perspective on our longer-term growth drivers entering fiscal 2019. Through last year's downturn, we focused our R&D to bring specific proprietary and disruptive products to fruition in specific markets with identified secular growth and revenue contribution in fiscal 2019. We chose to focus on these products due to the quality and strength of our design wins and first-tier customer commitments. As a result of these actions, we're now positioned to monetize our strategic investments during the next phase of global infrastructure spending, led by cloud data centers, followed by 5G telecom, and now a surge in civil and defense spending for global and homeland security. It's worth noting that all of these opportunities span well beyond China and many are inherently North America-based.

不過在進入問答之前，我想就我們邁入 2019 會計年度的較長期成長動能，提供一些補充觀點。在去年的景氣下行期間，我們聚焦研發，讓特定具專有性與顛覆性的產品在特定市場中落地；這些市場已確認在 2019 會計年度具有長期結構性成長與營收貢獻。我們之所以聚焦這些產品，是因為我們的設計導入品質與強度，以及一線客戶的承諾。因此，隨著全球基礎建設支出進入下一階段（由雲端資料中心帶動，其次是 5G 電信，並且目前全球與國土安全相關的民用與國防支出也出現激增），我們已具備將策略性投資變現的有利位置。值得注意的是，這些機會都遠不僅限於中國，且其中許多本質上以北美為主。

Starting with 5G telecom. I can finally speak more openly about the magnitude of the opportunity now that we settled our long-running litigation with Infineon. Let me explain why ST is so invested in teaming with us and why Infineon was so invested in litigating with us over rights at RF.

先從 5G 電信談起。既然我們已與英飛凌（Infineon）就長期訴訟達成和解，我終於可以更坦率地談談這個機會的規模。我來解釋為什麼意法半導體（ST）如此投入與我們合作，以及為什麼英飛凌如此投入就射頻（RF）權利與我們訴訟。

Gallium nitride is effectively a requirement for 5G base stations due to its superior efficiency and power density at the higher 5G frequency bands. Forecast from our top base station customers show a strong surge in RF power semiconductor content, both in dollars and especially in wafer consumption through 2023 for 5G. We're talking 3x greater demand in 5G than the previous 4G LTE cycle. We therefore believe that the billion-dollar RF power market is poised to triple over the next few years on the back of GaN in 5G base stations.

由於在較高的 5G 頻段具備更優異的效率與功率密度，氮化鎵（GaN）對 5G 基地台而言幾乎是必需品。我們頂尖基地台客戶的預測顯示，至 2023 年，5G 將帶動 RF 功率半導體含量大幅攀升，無論以美元計或尤其以晶圓消耗量計皆是如此。我們談的是 5G 的需求將是上一個 4G LTE 週期的 3 倍。因此我們相信，這個十億美元規模的 RF 功率市場，將在未來幾年在 5G 基地台採用 GaN 的推動下，有望成長至三倍。

Billion-dollar markets require high-volume semiconductor fabs. With the dramatic increase in wafer demand for 5G, it's imperative that the industry has high-volume sources for GaN production. Like STMicro's battery where we're sourcing GaN in Catania and Sicily. Catania is an order of magnitude greater in scale output than the world's largest compound semi fabs.

十億美元規模的市場需要高產量的半導體晶圓廠。隨著 5G 帶來晶圓需求的劇增，產業必須具備可提供 GaN 量產的高產量來源，這點至關重要。例如意法半導體（STMicro）的作法，我們在卡塔尼亞（Catania）與西西里（Sicily）取得 GaN 供應。卡塔尼亞的產出規模比全球最大的化合物半導體晶圓廠高出一個數量級。

Upon entering the 5G cycle with ownership of the fundamental patents, we're now more excited than ever about this opportunity for the following reasons. First, we can see GaN on Silicon in existing high-volume silicon fabs to fulfill the 5G build-out. Even the most optimistic plans for GaN on Silicon Carbide factory expansion announced by silicon carbide leaders can service but a small fraction of that 5G demand.

在進入 5G 週期並擁有基礎專利之後，我們對這個機會比以往任何時候都更興奮，原因如下。第一，我們看到可在既有的高產量矽晶圓廠中生產「矽基氮化鎵（GaN on Silicon）」以滿足 5G 建設需求。即使碳化矽領導廠商所公布、最樂觀的「碳化矽基氮化鎵（GaN on Silicon Carbide）」產能擴張計畫，也只能滿足 5G 需求中的一小部分。

Second, the higher frequency bands or modest power requirements and targeted price points of 5G massive MIMO antennas line up ideally with the properties of GaN on Silicon substrates.

第二，5G 大規模 MIMO 天線的較高頻段、或較溫和的功率需求與目標價格點，與矽基氮化鎵（GaN on Silicon）基板的特性高度契合。

Third, this is a different class of product than the high-powered transistors that were used in 4G LTE. These are 5G MMICs that don't require the back-end operations infrastructure of incumbent LDMOS suppliers. So we're playing on home turf in 5G. MACOM's GaN on Silicon is fully proven, validated and qualified with our customer base and now enjoys executive level sponsorship for adoption. In some cases, we're already in production with initial programs.

第三，這是一種不同於 4G LTE 所使用高功率電晶體的產品類別。這些是 5G 的單晶微波積體電路（MMIC），不需要既有 LDMOS 供應商的後段製程（back-end）作業基礎設施。因此在 5G 上，我們是在主場作戰。MACOM 的矽基氮化鎵（GaN on Silicon）已在我們的客戶群中充分證實、驗證並完成認證（qualified），如今也獲得高階主管層級的採用支持。在某些情況下，我們已針對初期專案進入量產。

Finally, with the Infineon settlement, we control our own destiny in GaN for base stations and in fact, GaN for all fields of use. The Nitronex patent portfolio lays a multidimensional, multilayer minefield that we firmly believe is impossible to navigate without infringing one or more of our fundamental patents.

最後，隨著與英飛凌的和解，我們在基地台用 GaN 方面掌握自己的命運，事實上也涵蓋所有應用領域的 GaN。Nitronex 的專利組合形成多維度、多層次的「雷區」，我們堅信若不侵害我們一項或多項基礎專利，幾乎不可能在其中穿行。

After this high-profile litigation with Infineon, we believe customers understand us intimately and plan to work with vendors who have access to the patents, namely, MACOM and our licensees. Between Infineon and our partner ST, we've now enabled a healthy industry supply chain for the 5G build-out, 2 of the top 5 8-inch semiconductor manufacturers globally.

在這場與英飛凌的高知名度訴訟之後，我們相信客戶已充分了解我們，並計畫與能取得相關專利的供應商合作，也就是 MACOM 以及我們的被授權方。在英飛凌與我們的合作夥伴意法半導體（ST）之間，我們如今已為 5G 建設建立起健康的產業供應鏈——兩家皆為全球前五大 8 吋半導體製造商。

Now stepping back and reflecting on the entire 5G telecom opportunity, GaN is but one of several highly proprietary MACOM technologies that are poised to play industry-enabling roles in 5G. The second is AlGaAs, our switch technology that enables superior reception on the receive side while providing superior power handling on the transmit side. Our Heterolithic Microwave ICs, or HMICs, have 3 dimensional glass structures to maintain superior RF performance and leadership power pulls. That's what differentiates the antennas in terms of coverage and energy efficiency.

現在退一步回顧整體 5G 電信機會，GaN 只是 MACOM 多項高度專有技術之一，這些技術都蓄勢待發，將在 5G 中扮演促成產業發展的關鍵角色。第二項是 AlGaAs（鋁鎵砷），這是我們的開關技術，可在接收端提供更優異的接收表現，同時在發射端提供更佳的功率承受能力。我們的異質整合微波積體電路（Heterolithic Microwave ICs，HMICs）採用三維玻璃結構，以維持卓越的 RF 性能與領先的功率拉升（power pulls）。這正是天線在覆蓋範圍與能源效率方面的差異化所在。

Last but not least, our indium phosphide Etched Facet lasers allow the optical backbone to scale cost effectively to 5G network bandwidth and latencies and fiber from home to a minimal. Each of these compound semiconductor technologies, from GaN on Silicon, HMIC and AlGaAs to indium phosphide lasers, are deeply rooted in MACOM's long heritage and core competence in specialized high-performance materials, processes and packaging. 5G is right in our wheelhouse. Major base station customers and network operators understand this better than anyone, for that reason, you'll understand why we're bullish as we enter the global cycle of 5G telecom infrastructure deployments.

最後但同樣重要的是，我們的磷化銦（InP）蝕刻端面（Etched Facet）雷射，讓光纖骨幹能以具成本效益的方式擴展，以支援 5G 網路的頻寬與低延遲，並將光纖到府（fiber from home）降至最低。上述每一項化合物半導體技術——從矽基氮化鎵（GaN on Silicon）、HMIC 與 AlGaAs 到磷化銦雷射——都深植於 MACOM 長期累積的傳承與核心能力，也就是在專用高性能材料、製程與封裝方面的專長。5G 正是我們的強項所在。主要基地台客戶與網路營運商比任何人都更了解這點，因此你也能理解，當我們進入全球 5G 電信基礎建設部署週期時，為何我們看多其前景。

Next in the area of global and homeland defense. From our vantage point, we see a coming wave of public and private sector investment in active antennas that utilize our high-performance RF and microwave components and Scalable Planar Arrays or SPAR Tile assemblies. Leveraging many years of work with MIT Lincoln Labs, we believe we have a unique approach that can readily scale to high-volume with a commercial cost structure for a wide array of military and civil applications. A prime example is the U.S. government's SENSR program, which is shaping up to be the largest radar system deployment in U.S. history. It's jointly sponsored by the FAA, DoD and Department of Homeland Security. SENSR is expected to consolidate and replace outdated radar systems to support air traffic control as well as protect against modern-day threats in U.S. aerospace.

接下來談全球與國土防衛領域。從我們的觀點來看，公部門與私部門即將掀起一波對主動式天線的投資浪潮，這些天線將採用我們的高性能 RF 與微波元件，以及可擴展平面陣列（Scalable Planar Arrays，SPAR）Tile 組件。憑藉與麻省理工學院林肯實驗室（MIT Lincoln Labs）多年合作的成果，我們相信我們擁有一種獨特的方法，能以商業化成本結構輕易擴展至高產量，適用於廣泛的軍用與民用應用。一個典型例子是美國政府的 SENSR 計畫，該計畫正逐步成為美國史上最大規模的雷達系統部署。它由 FAA、國防部（DoD）與國土安全部共同贊助。SENSR 預期將整併並汰換過時的雷達系統，以支援空中交通管制，同時防範美國航太領域的現代威脅。

Last month, our RFI responses from the major prime contractors featured MACOM's tiles prominently in their SENSR proposals. Over life of the build-out, SENSR represents a multiyear, multibillion-dollar opportunity for MACOM. While field deployment is still a couple of years out, final bids now require a full scale preproduction builds, which we plan to support in engineering as well as manufacturing over fiscal 2019 and 2020.

上個月，主要總承包商對我們的 RFI 回覆中，在其 SENSR 提案裡都顯著納入了 MACOM 的 Tile。在整個建置期內，SENSR 對 MACOM 而言代表一個為期多年、金額達數十億美元的機會。雖然實地部署仍需再等幾年，但最終投標目前已要求完整規模的量產前（preproduction）建置，我們計畫在 2019 與 2020 財年於工程與製造兩方面提供支援。

Even before the SENSR program, these same tiles are being used in low-cost mobile, expeditionary as well as fixed the antennas to detect the potential use of commercial drones by terrorists and other criminal elements. The FBI and the Department of Homeland Security are getting increasingly concerned about drones being weaponized with chemical, biological, radiological agents. Legislation is currently before Congress that will allow drones to be taken down near open air venues and public facilities. But first, they have to see them coming. They need sufficient range for early warning in any and all light conditions, that's radar. And that's where low-cost Scalable Planar Arrays Tiles come in. A prime example is Sky Chaser, which I mentioned last earnings call, but there are numerous other opportunities that we see coming to fruition.

甚至在 SENSR 計畫之前，這些相同的 Tile 就已用於低成本的機動式、遠征式以及固定式天線，以偵測恐怖分子與其他犯罪分子可能使用商用無人機的情況。FBI 與國土安全部對無人機被武器化、搭載化學、生物、放射性物質的風險日益憂心。目前國會正在審議一項法案，將允許在露天場館與公共設施附近擊落無人機。但首先，他們必須能提前發現無人機接近。他們需要在任何光照條件下都具備足夠的早期預警距離——那就是雷達。而這正是低成本可擴展平面陣列（Scalable Planar Arrays）Tile 派上用場之處。一個典型例子是我在上次財報電話會議提到的 Sky Chaser，但我們也看到還有許多其他機會正逐步落地。

Security radar antennas could become as ubiquitous as security cameras and cellphone towers are today. The world's leading radar customers and U.S. government agencies understand MACOM's unique position with Scalable Planar Arrays better than anyone. For that reason, you can understand why we're bullish about the growth prospects of public and private sector investment in defending against these modern-day threats to peace and prosperity.

安全雷達天線可能會像今日的監視攝影機與手機基地台一樣普及。全球領先的雷達客戶與美國政府機構比任何人都更了解 MACOM 在可擴展平面陣列（Scalable Planar Arrays）方面的獨特地位。因此，你也能理解，為何我們看好公私部門投資成長的前景，以防禦這些對和平與繁榮的現代威脅。

Finally in data centers. Cloud service providers are still in the early innings of a long upgrade cycle to 100 gig and greater connectivity within their hyperscale data centers. Customer forecast project 2019 and 2020 to be strong growth years for CWDM4 in particular, with the potential for 100 gig unit demand to more than double in 2019, reaching estimated volumes over 10 million units next year. While CWDM will represent a vast majority of unit volumes over the next few years, 2019 is also expected to see meaningful adoption of single-lambda PAM-4. Growing availability of 12.8 terabit switch silicon, like Broadcom's Tomahawk 3 chipset, has spurred the introduction of new 128-port 100-gig ethernet switching platforms from leading network equipment providers. This, combined with the successful Plugfest in September, has triggered our customers to move forward with 100-gig PAM-4 transceivers. MACOM has entrenched design wins for 100-gig PAM-4 with the key scale players who are planning volume production next year. So we believe we're well positioned to establish preeminent share in this first year of meaningful deployments of PAM-4.

最後是在資料中心。雲端服務供應商在其超大規模資料中心內，朝向100G及更高速連線的長期升級週期仍處於初期階段。客戶預測2019與2020年將是CWDM4特別強勁的成長年度，2019年100G的單位需求有可能較前一年增加逾一倍，並在明年達到估計超過1,000萬個單位的出貨量。雖然未來幾年CWDM將占絕大多數的出貨量，但預期2019年也將看到單一波長PAM-4的顯著採用。12.8Tb交換器矽晶的供應日益充足（例如Broadcom的Tomahawk 3晶片組），已促使主要網路設備供應商推出新的128埠100G乙太網路交換平台。再加上9月成功的Plugfest，已促使我們的客戶推進採用100G PAM-4收發器。MACOM已在100G PAM-4方面，於計畫於明年進行量產的關鍵規模型客戶中取得穩固的設計導入勝利。因此，我們相信在PAM-4首次出現具意義部署的這一年，我們已具備良好條件建立領先的市占。

All in all, we expect optical connectivity for cloud data centers to remain a strong growth opportunity for years to come, with an accelerated pace of innovation and strong underlying economics. With each sequential quarter, we expect to build upon our business in analogs, CDRs, drivers and TIAs, layering on top 25-gig lasers, DSP PHYs and L-PICs for CWDM4 as well as PAM-4 as it grows to relevant share over time.

總體而言，我們預期雲端資料中心的光學連線在未來多年仍將是強勁的成長機會，創新速度加快，且具備強勁的基本經濟效益。隨著每一個連續季度，我們預期在類比元件、CDR、驅動器與TIA等業務基礎上持續擴展，並進一步疊加25G雷射、DSP PHY與用於CWDM4的L-PICs，以及隨時間成長至具代表性市占的PAM-4相關產品。

Major network equipment and transceiver OEMs and cloud service providers understand MACOM's potential better than anyone. For that reason, you can understand why we're bullish on our short and long-term growth prospects in cloud data centers.

主要網路設備與收發器OEM，以及雲端服務供應商，比任何人都更了解MACOM的潛力。因此，你也能理解為何我們對雲端資料中心的短期與長期成長前景抱持樂觀態度。

To conclude, we remain squarely fixated on getting back to our targeted financial operating model of 60% gross margin, 30% operating margin and 60% free cash flow. Our fiscal Q4 results were another step in the right direction.

總結而言，我們仍然專注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。我們的2018會計年度第四季（Q4）業績，是朝正確方向邁出的又一步。

Over the course of fiscal 2019, we expect the combination of growing revenue contribution from our secular growth drivers and prudent OpEx management to provide leverage for expanding operating margins.

在2019會計年度期間，我們預期來自長期結構性成長驅動因素的營收貢獻提升，加上審慎的營運費用（OpEx）管理，將帶來槓桿效應以擴大營業利益率。

The current trade tensions with China present lingering uncertainties and we'll remain on watch for signs of sluggishness in the analog markets as reported by some of our larger peers. In light of these factors and historical seasonality regarding Q1 based on hard orders and backlog. Moving forward, we're taking it 1 quarter at a time guiding base for our customer backlog, order visibility and our operational ability to scale these new products and technologies.

目前與中國的貿易緊張局勢帶來持續的不確定性；我們也將持續留意部分較大型同業所回報的類比市場放緩跡象。考量這些因素，以及基於硬訂單與在手訂單（backlog）所呈現的第一季（Q1）歷史季節性。展望未來，我們將以每次一個季度的方式前進，並以客戶在手訂單、訂單能見度，以及我們擴產以支援這些新產品與新技術的營運能力為基礎提供指引。

That brings me to Q1 guidance. For the fiscal first quarter ending December 28, 2018, we expect revenue to be in the range of $150 million to $156 million, adjusted gross margin is expected to be between 55% and 57%, and adjusted earnings per share between $0.18 and $0.22 on an anticipated 66.5 million fully diluted shares outstanding.

接下來談第一季（Q1）財測指引。對於截至2018年12月28日的會計年度第一季，我們預期營收介於1.50億至1.56億美元；調整後毛利率預期介於55%至57%；在預估完全稀釋後流通股數為6,650萬股的前提下，調整後每股盈餘（EPS）介於0.18至0.22美元。

Operator, you can now open the call to questions.

接線員，現在可以開放提問。

(Operator Instructions) And our first question will come from the line of Quinn Bolton with Needham & Company.

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

I wanted to start first on the data center opportunity. You've got a pretty strong position in PMDs for the energy market, sounds like you also have some growing traction in the PAM-4. Can you give us some sense how quickly could the PAM-4 business ramp in fiscal '19 for you? Sounds like you've got wins across both some network equipment as well as transceiver customers?

我想先從資料中心的機會談起。你們在能源市場的PMD方面有相當強的地位，聽起來你們在PAM-4方面也有一些逐步增強的動能。你能否讓我們了解一下，在你們的2019會計年度，PAM-4業務可能以多快的速度放量成長？聽起來你們同時在部分網路設備客戶以及收發器客戶那邊都有得標？

Good question. So let me address that on PAM-4 first. So like I said, the plugfest that was actually on September 11 of all days was very successful for our customers. They began the process of introducing products, I have to be a little careful about telegraphing their introduction time lines. I would say it starts making material contribution in the latter half of 2019, and it will ramp materially, but it's still going to be frankly dwarfed by CWDM4 volumes in 2019. I missed the second half of the question, you can do the follow-up.

好問題。我先就PAM-4來回應。如我所說，實際上在9月11日那天舉行的plugfest對我們的客戶非常成功。他們已開始導入產品流程；我必須稍微謹慎一些，避免過度透露他們的導入時程。我會說它在2019年下半年開始做出實質貢獻，並且會明顯放量，但坦白說，2019年它的規模仍會遠小於CWDM4的出貨量。我漏聽了問題的後半段，你可以再追問。

Yes. Follow-up is actually going to be more on the 5G GaN on Silicon opportunity. You're talking about that more tripling as we move to 5G and GaN-based PAs and again sort of a similar question, big opportunity for you over a multiyear period, but is it significant for you, do you think, in fiscal '19 in terms of the GaN contribution?

好的。追問其實是關於5G的矽基GaN（GaN on Silicon）機會。你提到隨著邁向5G與採用GaN功率放大器（PA），這部分可能成長到超過三倍；同樣類似的問題，這是你們跨多年期間的一個大機會，但你認為在2019會計年度，就GaN的貢獻而言，對你們是否已具顯著性？

Yes. I mean, we've learned the hard way about trying to guide 1 quarter at a time. I think if you look -- the simple answer to that is if you look at the kind of public reports on 5G deployments, our revenue opportunity reflects exactly that ramp, which there are deployments beginning this year, but it really hits its stride in '20, '21, '22 time frame, and it continues into '23. So I wouldn't describe it as a present tense. But certainly, it is hot and heavy right now in terms of customers lining up their supply chain. It's -- now that the litigation is over, I can talk more openly. It's actually quite shocking when you see the unit volumes and the wafer consumption requirements. And you're talking about integer multiples are higher than LDMOS in the previous cycle of the 4G LTE cycle. So it's really an operations challenge for our customers. But I think we're perfectly positioned with the settlement.

是的。我的意思是，我們已經深刻體會到，嘗試一次只對一個季度做指引有多困難。我想如果你看——簡單的答案是：如果你看關於5G部署的公開報告，我們的營收機會正好反映那樣的爬坡曲線；今年開始會有部署，但真正進入加速期是在'20、'21、'22這段時間，並且延續到'23。所以我不會把它描述成當下就已經大量發生。但可以確定的是，就客戶正在安排其供應鏈而言，目前確實非常火熱且密集。而且——現在訴訟已經結束，我可以更公開地談。當你看到單位出貨量與晶圓消耗需求時，其實相當令人震驚。你談的是相較於上一個4G LTE週期中的LDMOS，呈現整數倍數的提升。因此，對我們的客戶而言，這確實是一項營運上的挑戰。但我認為透過這次和解，我們已處於非常有利的位置。

And our next question will come from the line of Harsh Kumar with Piper Jaffray.

下一個問題來自Piper Jaffray的Harsh Kumar。

A couple of questions. We are hearing about a lot of dislocation in China. Your numbers are fine. I guess, I'm curious what are you seeing in the Chinese market. I know that's a big important market for you. Also at this time, the China inventory -- I'm sorry, the China optical, does usually adjust inventory, you seemed to be avoiding that. Again, could you talk about some of the things that you're seeing there? And then I have a couple of other follow-ups.

有幾個問題。我們聽到中國出現很多市場錯位與動盪。你們的數字看起來還不錯。我想了解你們在中國市場看到的是什麼情況。我知道那對你們是個非常重要的大市場。另外在這個時間點，中國的庫存——抱歉，我是指中國的光學市場，通常會進行庫存調整，但你們似乎避開了那種情況。能否談談你們在那裡看到的一些現象？然後我還有幾個後續問題。

Yes, absolutely. So China, I mean, we're a little bit different. A lot of the other people's report about China are more pure-play than a single business. We have 2, 3, 4 significant businesses. So it's kind of a mixed bag. On the positive side, the Metro/Long-haul stuff looks to be quite healthy. Customers are burning off inventories. The port shipments are very healthy and growing. There is that mix from long-haul to metro, but I think that's back to normal. On the other end of the spectrum, we get this unexpected denial of order in the product going into aerospace customers in China. So that was ugly, and there's other stuff like the PON market that's kind of in the middle. So there's no simple answer for -- at least for us in China.

是的，當然。關於中國，我的意思是，我們的情況有點不同。其他人對中國的報告，往往在單一業務上更偏向純度更高的「純玩家」。我們有2、3、4個重要業務。所以情況有點好壞參半。正面來看，城域/長途（Metro/Long-haul）相關看起來相當健康。客戶正在消化庫存。埠口出貨非常健康且在成長。確實存在從長途到城域的組合變化，但我認為那已回到正常。在光譜的另一端，我們在供應給中國航太客戶的產品上，遇到意外的訂單遭否決。所以那很難看；另外還有像PON市場這類介於中間的狀況。因此，至少就我們在中國的情況而言，沒有一個簡單的答案。

Got it, John. And then I was curious, a couple of the other companies that we cover have talked about China data center ramping pretty hard and fast in early part of 2019 with 25-gig lasers. You have those products. You got historically a pretty strong presence in that geography as well and in optical. I'm curious if your opportunity charts sort of that path? And then also on a similar kind of line, several other companies are talking about small revenues in 5G. I'm curious if you can talk about what revenues you have? They are talking about a steep ramp, which I think you're talking about too, if I'm not mistaken.

了解了，John。接著我也好奇，我們所覆蓋的其他幾家公司談到，2019年初中國資料中心會以25G雷射非常快速且大幅地拉升。你們有這些產品。你們過去在該地區以及在光學領域也一直有相當強的布局。我想了解你們的機會是否也會沿著那樣的路徑發展？另外在類似的脈絡下，還有幾家公司提到在5G方面目前只有小幅營收。我想請你談談你們目前有多少營收？他們談到會有陡峭的拉升，我想你們也在談這件事，如果我沒理解錯的話。

Yes. So on China data center, we don't have to wait for lasers. I mean, our analog business is smoking over in China, selling into Chinese data center customers and applications. I would say, in China in general, both for data center and 5G mid-haul, front-haul, there's an extreme interest in moving to these 25-gig lasers and associated 100-gig analog components and quite possibly in the PAM-4 PHYs. So China will be an exciting market too. It's still, I think, going to be challenged to catch up certainly on data center side, the strength between the Facebooks, Googles, Amazons, Microsoft, Apple. It's still very much a North American-centric market. But forecast for 5G optical are of similar magnitude. So it's, to me, a very healthy global market for our analog components, lasers and PHYs. On the 5G revenues, we don't break things out at that level of detail. We are shipping material revenue in 5G FEMs as well as GaN products in those initial systems. But I wouldn't say it's a growth driver yet, but there's very real revenue with the right guys.

是的。關於中國資料中心，我們不需要等雷射。我的意思是，我們的類比業務在中國表現非常強勁，正在向中國的資料中心客戶與應用出貨。我會說，整體而言在中國，不論是資料中心或5G中傳/前傳，都對轉向這些25G雷射以及相關的100G類比元件、甚至可能包含PAM-4 PHY，抱持極高的興趣。所以中國也會是一個令人興奮的市場。不過我認為，尤其在資料中心端，要追上仍然會有挑戰，因為Facebook、Google、Amazon、Microsoft、Apple等的強勢帶動。這仍然非常以北美為中心的市場。但5G光學的預測規模也相近。所以對我而言，這對我們的類比元件、雷射與PHY來說，是一個非常健康的全球市場。至於5G營收，我們不會細分到那個層級的細節。我們在5G FEM以及那些初期系統中的GaN產品方面，正在出貨具實質規模的營收。但我不會說它已經是成長驅動力，不過確實與對的客戶有很真實的營收。

And our next question will come from the line of Blayne Curtis with Barclays.

下一個問題來自Barclays的Blayne Curtis。

Maybe just sort of very high-level, your guidance for December's up a few million dollars. Any color on the segment? I think it sounded like data center would grow again, but maybe some color in the other segments would be helpful.

也許先從很高層次來看，你們對12月的指引上調了幾百萬美元。能否談談各事業部的情況？聽起來資料中心會再度成長，但如果也能補充其他部門的一些狀況會很有幫助。

That's a good question, Blayne. I would say the end-market demand across all segments is fine, it's healthy. The one thing that kind of -- the 2 things that really moderate our projections for the next quarter, one is we have that headwind now unanticipated with Chinese aerospace customers, which we quantified at $2 million, maybe as much as $4 million. So it would have been stronger in the absence of that. The other thing is we have seen in previous years and we're planning for in our guidance, year-end inventories to pull in, especially over in China. Our customers, in many cases, are incentivized with bonuses on year-end inventories. So we want to make sure that we can support them in a manner that they want to manage their inventories. So I'd say with those 2 factors aside, the end markets across all 3 are still quite very healthy.

這是個好問題，Blayne。我會說，各個事業部的終端市場需求都不錯、很健康。真正讓我們對下一季預測有所收斂的因素大概有兩個：第一，我們現在遇到一個先前未預期、來自中國航太客戶的逆風，我們量化約為200萬美元，可能高達400萬美元。所以若沒有這個因素，本來會更強。第二，我們在過去幾年都看過、也已納入指引規劃的是，年底庫存會被拉回（去化），尤其是在中國。我們的客戶在很多情況下，年底庫存水位會影響其獎金誘因。因此我們希望確保能以他們想要的方式來支援其庫存管理。所以我會說，撇除這兩個因素，三大終端市場仍然都相當健康。

And then maybe a question for you or Bob. Question, I thought that you were going to see an elevated amount of CapEx for your foundry partner in September. It looks like it was kind of flat. So one, is that happening in December? And maybe if you could just give us some color as to the progress of ramping STMicro?

接著可能是問你或Bob的問題。我原本以為你們的晶圓代工夥伴在9月會有較高的資本支出。但看起來相對持平。所以第一，那會發生在12月嗎？另外能否請你們談談STMicro擴產爬坡的進展？

Blayne, you're correct. We did identify the capital expenditure for STMicro that's been pushed out for reasons that are not to be translated into anything else that I expected to make a onetime payment. But I've learned that we can pay for that over time, not in installment like payment that we make a deposit first, I mean, made progress payments. As I noted last quarter, it's a large amount but it will be paid as it comes together at year-end, and the final payment will be on delivery. So rather than it being a one-time full amount payment as they anticipated last quarter, it will be paid in multiple payments across the balance of fiscal '19.

Blayne，你說得沒錯。我們確實提到STMicro的資本支出已被往後遞延，原因不應被解讀成其他含意；我原先預期會做一次性付款。但我後來了解到，我們可以隨時間支付，而不是一次性付款；也就是先付訂金，然後再做分期的進度款。如我上季所提，金額很大，但會在年底逐步到位時支付，最後一筆會在交付時支付。因此，與其像上季所預期那樣一次付清全額，現在會在2019會計年度剩餘期間分多次支付。

So to me, you added a good point there. I'll speak to Blayne. So in terms of working with ST to ramp capacity, I'd say that the top ranks of ST along with us are reacting to these very bullish forecasts in terms of capacity commitments. We're working together to get that, not just the initial capacity ramps, but we need a 3 to 5-year capacity ramp. For these as well as adjacent markets, now that we have the rights for the GaN on Silicon patents, we can enable ST on a broader basis. So that relationship and the outlook on collective business has never been brighter. I think if you talk to the ST folks, you'll see -- you'll hear a similar level of enthusiasm.

我覺得你補充了一個很好的點。我來回應Blayne。就與ST合作擴充產能而言，我會說ST的高層以及我們，都在因應這些非常樂觀的預測，來做產能承諾。我們正一起合作，不只是初期的產能爬坡，我們需要的是3到5年的產能爬坡。此外，現在我們擁有GaN on Silicon（矽基氮化鎵）專利的權利，我們可以在更廣泛的層面賦能ST。因此，這段合作關係以及共同業務的展望從未如此光明。我想如果你去和ST的人聊，你會看到——你會聽到同樣程度的熱情。

And our next question will come from the line of C.J. Muse with Evercore.

下一個問題來自Evercore的C.J. Muse。

I guess, first question, as you look to fiscal '19, trying to parse through what is near-term growth for you guys versus a bit longer term. So if you think about data center, 5G, defense, other, how would you rank order? What would you expect in terms of revenue growth in absolute terms looking to fiscal '19 versus fiscal '18?

我想先問第一個問題：當你們看2019會計年度時，想釐清哪些是你們的短期成長、哪些偏中長期。所以如果把資料中心、5G、國防、其他放在一起，你會怎麼排序？以絕對金額來看，2019會計年度相較2018會計年度，你預期營收成長會是什麼樣子？

Again, we're cautious to guide 1 quarter at a time, and the reason is simple. In the short term here, the thing that -- we've got a nice, healthy, strong industrial and defense demand. That said, we just posted 8% sequential growth after a 10% the prior quarter. So it's hard to kind of sustain that on a quarter-by-quarter basis. But that demand seems to be holding up quite well. The telecom stuff, I think it's the 5G kick in as you go through the course of the year, it's kind of backloaded. The data center stuff right now ramping, specifically the lasers and lasers and merchant market sales as well as our solutions business, I'd say clearly the #1 organic growth driver. In terms of our ability to grow this year, I think you get the sense from the bullishness of my comments about long-term growth prospects, we have a lot of juice. I can tell you, we are very well positioned in a lot of areas of the industry, is really heating up. But the most difficult thing and the thing I really caution is you got to be careful with time. We have the right customers. They have the right programs. We have certain field trials that are going very well. But until we see the orders and we can guide, we keep trying to express caution. But everything I spoke about has never been more real.

同樣地，我們謹慎地一次只提供一季的指引，原因很簡單。短期來看，我們有不錯、健康且強勁的工業與國防需求。話雖如此，我們剛公布在前一季成長10%之後，本季又有8%的季增。所以要在每一季都維持那樣的成長其實不容易。但那個需求看起來維持得相當好。電信方面，我認為5G的動能會在一年當中逐步顯現，偏向下半年發力。資料中心方面目前正在爬坡，特別是雷射、雷射與商用市場（merchant market）的銷售，以及我們的解決方案業務；我會說這顯然是第一大有機成長驅動力。就我們今年的成長能力而言，我想你可以從我對長期成長前景的樂觀評論中感受到，我們還有很大的成長動能。我可以告訴你，我們在產業許多正在升溫的領域都處於非常有利的位置。但最困難、也是我真正要提醒的是，你必須對時間點保持謹慎。我們有對的客戶。他們有對的專案。我們有一些現場試驗進展得非常順利。但在我們看到訂單並能提供指引之前，我們仍會持續表達謹慎。不過我所談到的一切，從未像現在這樣真實。

That's very helpful. I guess question for Bob, it looks like you implied OpEx is around $65.5 million pro forma, give or take. And I'm just curious as part of that, are you including the full benefit of reduced litigation expense as well as cost savings from factory shutdowns?

這非常有幫助。我想問 Bob 一個問題，看起來你暗示按備考口徑計算的 OpEx 大約是 6,550 萬美元，上下浮動一些。我只是好奇，作為其中一部分，你是否也把訴訟費用降低的完整效益，以及工廠關閉帶來的成本節省都納入了？

So just help me with the question of timing, say that question. Are you -- is it litigation expense?

所以請幫我釐清一下時間點的問題，也就是剛才那個問題。你們——是指訴訟費用嗎？

So the OpEx that you guided for -- implied in December, does that include the full benefit of factory shutdowns as well as reduced litigation expenses? Or should we be thinking about further savings look into the March quarter?

所以你們在 12 月所給出的 OpEx 指引——其中隱含的數字，是否已包含工廠關閉的完整效益以及訴訟費用降低？還是我們應該預期在 3 月季度還會看到進一步的節省？

The answer is the expense savings for the shutdowns are included in the sale of the businesses, particularly the Hi-Rel business. The litigation expenses we did not include in GAAP results not as being more or less a onetime event. So they don't impact the level of operating expenses that we report.

答案是，關閉所帶來的費用節省已包含在業務出售之中，特別是 Hi-Rel 業務。訴訟費用方面，我們沒有把它納入 GAAP 結果，因為它或多或少屬於一次性事件。因此它們不會影響我們所報告的營運費用水準。

And our next question will come from the line of Harlan Sur with JPMorgan.

下一個問題來自 JPMorgan 的 Harlan Sur。

If I exclude the $7 million in nonproduct revenues from the data center business in June, your data center business was strong. It grew close to 20% sequentially. Can you guys just help us understand what drove the strong product growth? I know you mentioned the 25-gig laser ramp was probably a big part of that. I'm also wondering if your transceiver solutions, the white box transceiver partnership also contributed to the incremental revenues in the quarter. And any other colors on some of the incremental growth drivers in the DC business?

如果我把 6 月資料中心業務中 700 萬美元的非產品營收排除，你們的資料中心業務其實很強勁。它的季增接近 20%。你們能否協助我們理解，是什麼驅動了強勁的產品成長？我知道你們提到 25G 雷射的放量爬坡可能是其中很大一部分。我也想知道，你們的收發器解決方案、白牌收發器合作夥伴關係，是否也對本季的增量營收有所貢獻。以及資料中心業務還有哪些其他增量成長的驅動因素可以分享？

Yes, it's a good question. So just to be clear, when we talk about laser sales, that's both in a solutions model as well as merchant market. So we really don't segment that out, we don't want to confuse people with the product service model. I guess -- I mean, well, certainly the laser is a laser, it's a laser. How the demand was generated was a separate issue. But yes, you're right, it's a strong contribution on the laser ramp. But that wasn't just it, we actually had some recovery on some stuff that in the core connectivity business, which was previously known as AppliedMicro. There's some core stuff with a particular large customer that comes kind of lumpy. So we had a favorable tailwind last quarter. I won't get into the operational challenges that customer has, but it can show up as tailwinds or headwinds on a quarter-by-quarter basis. But unequivocally, you're right, it was 18% sequential growth from data centers on product revenue. And lasers was and continues to be a big part of that.

是的，這是個好問題。先說清楚，當我們談到雷射銷售時，既包含解決方案模式，也包含商用（merchant）市場。所以我們不會把它再細分出來，我們不想用產品/服務模式把大家搞混。我想——我的意思是，雷射就是雷射，就是雷射。需求是如何被創造出來的，是另一個議題。但沒錯，你說得對，雷射放量爬坡貢獻很大。不過不只如此，我們在核心連接業務（先前稱為 AppliedMicro）的一些項目也出現復甦。其中有些核心產品對某個大型客戶的出貨會比較不均勻、呈現波動。所以我們上季有一個有利的順風。我不會深入談該客戶的營運挑戰，但它可能在每一季以順風或逆風的形式呈現。但毫無疑問，你說得對，資料中心的產品營收季增 18%。而雷射一直是、也將持續是其中很大的一部分。

Yes. It's good to see the momentum there. Bob, on the gross margins in the September quarter, it was about a 120 basis points below kind of the midpoint of your guidance range. First, I guess is what drove the slightly lower margin performance? And then on the flip side, what's driving the strong 120 basis improvement in margins going into the December quarter?

是的。很高興看到那裡的動能。Bob，9 月季度的毛利率大約比你們指引區間的中點低了 120 個基點。首先，想請教是什麼導致毛利率表現略低？然後反過來看，推動你們在 12 月季度毛利率提升 120 個基點的因素又是什麼？

Harlan, there's a couple of things. So we did have the tail end of the Hi-Rel business that wasn't our most attractive gross margin business, that goes away for the small piece it was that will contribute to the increase in gross margins of fiscal Q1. And then again, the aerospace customers that we were denied the ability to ship had very, very attractive margins, and that too brought the margin overall down. Those things are accounted for now in our guidance and, therefore, the range that we have delivered here.

Harlan，有幾個因素。我們確實還有 Hi-Rel 業務的尾端部分，而那不是我們毛利率最具吸引力的業務；那一小部分隨著退出而消失，將有助於 2020 財年第一季毛利率的提升。另外，我們原本被禁止出貨的航太客戶，其毛利率非常、非常有吸引力，這也把整體毛利率拉低了。這些因素現在都已反映在我們的指引中，因此也體現在我們所提供的區間裡。

And our next question will come from the line of Mark Delaney with Goldman Sachs.

下一個問題來自 Goldman Sachs 的 Mark Delaney。

First question was a follow-up on the data center and the laser opportunity. I know shipping components to white box, the suppliers to go into hyperscalers have been one of the efforts, either through licensing or direct sales. And I was hoping you could be a bit more explicit to what extent you're starting to see volume revenue of those programs, either in the completed quarter or what's assumed in your guidance?

第一個問題是延續資料中心與雷射機會的追問。我知道，向白牌供應鏈出貨元件、讓其進入超大規模（hyperscalers）客戶，一直是你們的努力方向之一，可能透過授權或直接銷售。我希望你們能更明確說明一下：這些專案的量產型營收在本季是否已開始顯現？或者在你們的指引中假設了多少？

Yes. Now you're talking about slicing, dicing. I don't have the numbers in front of me actually in laser breakout between different customers with different models, but I can give you the general shape. I would say because the new lasers with the improved yield and reliability are still new, tends to be skewed towards the demand that we generated ourselves with our solutions model earlier. That said, we're very aggressively going out selling what we call merchant market sales of the lasers. Frankly, we have no preference to one model versus the other. Anybody who wants to buy a laser at the right price is welcome to do so. It's just one is more controllable demand creation. The other one is more traditional component demand creation, and I think over time, it's -- there's a lot of very healthy people out there who have their own designs that are more than happy to be buying our lasers. So it's really speculative about how much share we can drive how quickly, and that's going to be an unfolding situation over the course of the next 90 days as we go out and drive that demand creation.

是的。你現在是在要求更細的拆分。我手邊其實沒有把雷射依不同客戶、不同模式拆分的數字，但我可以描述大致輪廓。我會說，因為新一代雷射在良率與可靠性提升後仍屬於新產品，所以需求目前往往更偏向我們先前透過解決方案模式自行創造出來的需求。話雖如此，我們也非常積極地推動我們所稱的雷射商用（merchant market）銷售。坦白說，我們對兩種模式沒有偏好。任何人只要願意以合適的價格購買雷射，都歡迎。只是其中一種模式在需求創造上更可控。另一種則更像傳統的元件需求形成；我認為隨著時間推進，市場上有很多狀況良好的客戶有自己的設計，也非常樂意採購我們的雷射。因此，能在多快時間內推動多少市占其實帶有不確定性，而這會在接下來 90 天內隨著我們外出推動需求創造而逐步展開。

Got it. And then a follow-up question on the settlement and license with Infineon that you mentioned. Can you help us better understand what financial terms are maybe associated with that? Is Infineon paying MACOM any sort of royalties? And maybe help us understand, are those potential royalty damage are those things that MACOM will be seeing now? And when Infineon potentially start ramping in 2021, what does that mean for potential royalty payments?

了解。接著追問你提到與 Infineon 的和解與授權。你能否協助我們更好理解其中可能涉及哪些財務條款？Infineon 是否會向 MACOM 支付任何權利金？也請幫我們理解，這些潛在的權利金或損害賠償，MACOM 現在是否會開始看到？以及當 Infineon 可能在 2021 年開始放量時，這對潛在的權利金支付意味著什麼？

Yes. So there are confidential terms in the selling and this was perhaps the most sensitive area for Infineon. So I don't have the liberty to discuss the financial terms of the settlement, other than just the fact that we accomplished all the goals for all the litigation not just that we have set out when we originally litigated. So I don't mean to dodge the question, but we are covered by confidentiality terms of the agreement.

是的。和解中有保密條款，而這可能是對 Infineon 來說最敏感的部分。因此，除了我們已達成所有訴訟目標——不僅是這一案，而是我們在最初提起訴訟時所設定的所有目標——之外，我沒有自由去討論和解的財務條款。我不是要迴避問題，但我們受到協議保密條款的約束。

Got it. Maybe just -- I guess that couldn't count for my second question. I'll give you a different one then. There's potential M&A amongst some of the optical companies. And I was hoping you could help us understand what impact you may see to that, to MACOM, if any, in the near and intermediate term.

了解。也許——我想那不能算我的第二個問題。那我換一個。一些光學公司之間可能會出現併購。我希望你能幫我們理解，這在短期與中期對 MACOM 可能會有什麼影響（如果有的話）。

Yes. I don't think there's anything that's been going on that's had a positive or negative impacts. It's just we're fascinated by the II-VI, Finisar combination. I don't see that necessarily as a positive thing or a negative thing for MACOM. It's a very interesting combination. But this industry, the optical industry continues to evolve. And the consolidation was predictable, and further consolidation is probably predictable. A lot of these high bandwidth transceivers, one would look at it as commoditizing, and we view it as just scaling into semiconductor-type model. So more differentiated, more boutique, and I say that in a positive sense, not in a negative sense. The transceiver guys, it makes sense for them to consolidate. But it's all good, they're all good customers for our analog and Metro-Long-haul businesses. So it's just fun to watch, to be honest.

是的。我不認為目前發生的任何事情對我們有正面或負面的影響。我們只是對 II-VI 與 Finisar 的合併感到很有興趣。我不認為那對 MACOM 必然是正面或負面的事情。這是一個非常有意思的組合。但這個產業、光學產業仍在持續演進。而整併是可預期的，進一步的整併大概也同樣可預期。許多這類高頻寬收發器，有人會把它看作商品化，我們則把它視為朝向半導體式的規模化模型發展。因此會更差異化、更偏精品化；我這麼說是正面的意思，不是負面的意思。對收發器廠商而言，整併是合理的。但都很好，他們都是我們類比與都會—長途（Metro-Long-haul）業務的好客戶。所以老實說，這只是很有趣、值得觀察。

And our next question will come from the line of Mark Kelleher with D.A. Davidson.

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

Just wanted to ask back on the data center business. I know we've talked a lot about that here. But can you just give us maybe a high-level view what you see as the competitive position there? I know you're selling to a partner and the partner is selling on, but very price competitive part of the market. And there's also some disruption this quarter with a competitor that couldn't deliver. So I'm just wondering if you're seeing any changes in the market share dynamics or in the pricing dynamics over on the data center side?

我想再回到資料中心業務問一下。我知道我們在這裡談了很多。但你能否從較高層次談談你們在那裡的競爭地位？我知道你們是賣給合作夥伴，再由合作夥伴轉售出去，但那是市場中價格競爭非常激烈的一塊。而且本季也有一些擾動，因為有競爭對手無法交貨。所以我想了解，在資料中心端，你們是否看到市占動態或定價動態有任何變化？

Very fascinating question, yes. So I would describe it this way, as any market evolves from a modest size boutique into a very high-volume market, like we're seeing in these high-speed connectivity products into data centers, the economics products change. The ASP is changed, and we have done a fantastic job at our high-performance analog business, following those market price points, maintaining and growing share, maintain a growing gross margin. We have long-term agreements with very high shared companies that we've crafted. So we've been able to survive and thrive in that consolidating market, and it's a natural progression, it's not a negative thing. You just have to plan for it and plan your cost structure accordingly. I would say and I would describe it this way, in our analog business, we tend to compete with Semtech, inside the data center, inside. Outside the data center, it tends to be we compete with Inphi. And Semtech's a great company, it's good -- the industry needs multiple, healthy sources, and they're a high-quality competitor. On the laser side of things, yes, I mean, there's been some negative developments for some of our, I wouldn't call them competitors as much as customers, not part our SAM but certainly part of the TAM, and yes, there are some share shifts that are available to -- favorable to us. We don't thrive on other people's misfortune, but we have our own struggles that we work through ourselves. And now other people are dealing with similar things, and I think we're showing at the right time with the right products, proven reliability, great cost structure. And the industry continues the same for the laser side, in a supply shortage mode, for the foreseeable future. It's all good. And now as the PAM-4 stuff starts to ramp, PAM-4 to us is just another standard. We're not religiously for or against it. We've got a great position with our 100-gig PHY. We'll have the lasers. We already have the analog content leadership position. So very healthy spot to be in, and I think we have a very credible position selling pretty much something to everybody. Not everything to everybody. It's not about world domination, but it's a very nice area that there's a lot of healthy growth because the economics are good. Cloud data center guys, it's a revenue generator for them, not a negative thing. So we're obviously very bullish, and I think we're holding our own but expanding our position.

非常有意思的問題，是的。我會這樣描述：任何市場從中等規模、偏精品的市場，演進到非常大量的市場——就像我們在資料中心這些高速連接產品所看到的——產品的經濟性就會改變。平均售價（ASP）會改變，而我們在高效能類比業務上做得非常出色：跟上市場價格點、維持並擴大市占，同時維持並提升毛利率。我們也與一些非常高市占的公司簽訂並打造了長期協議。因此我們能在那個整併中的市場裡生存並茁壯；這是自然的演進，不是負面的事情。你只需要為此規劃，並相應地規劃你的成本結構。我會說，在我們的類比業務上，在資料中心內部我們通常與 Semtech 競爭。在資料中心外部，則通常是與 Inphi 競爭。Semtech 是一家很棒的公司——產業需要多個健康的供應來源——他們也是高品質的競爭對手。在雷射這一端，是的，我的意思是，我們的一些——我不會稱他們為競爭對手，更像是客戶——出現了一些負面進展；他們不在我們的 SAM 之內，但確實在 TAM 之內；是的，確實有一些市占移轉的機會對我們有利。我們不會靠別人的不幸而茁壯，但我們自己也有要克服的挑戰。而現在其他人也在面對類似的事情，我認為我們在對的時間帶著對的產品出現，具備經驗證的可靠度與很好的成本結構。而雷射端的產業狀況也一樣，在可預見的未來仍將處於供應短缺模式。一切都很好。另外，當 PAM-4 開始放量時，對我們而言 PAM-4 只是另一個標準。我們不會在立場上強烈支持或反對它。我們在 100G PHY 上有很好的位置。我們也會有雷射。我們已經在類比內容上取得領先地位。所以這是一個非常健康的位置，我認為我們在幾乎所有客戶那裡都能賣出一些東西，具備很高的可信度。不是把所有東西都賣給所有人。這不是要稱霸世界，但這是一個很好的領域，因為經濟性良好，所以有很多健康的成長。對雲端資料中心業者而言，這是收入產生器，不是負面的事情。所以我們顯然非常看多，我認為我們不僅守住了基本盤，也在擴大我們的地位。

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

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

Let me continue to beat the datacom horse. As you noted, you had, I guess, both the customer and the competitor struggle with some of the very same issues in the laser side that many have encountered. That didn't appear to impact your overall datacom business, but I wonder, I think you called out double-digit growth in analog ICs in datacom last quarter. Should we assume that had some impact in that datacom growth in the quarter and maybe heading forward is more laser and maybe legacy driven than analog IC-driven or no, I guess?

我再繼續追問資料通訊（datacom）這個話題。如你所提到的，你們的客戶以及競爭對手在雷射端似乎都遇到了一些許多人都碰到過的相同問題。這看起來並沒有影響你們整體的 datacom 業務，但我想問的是：我記得你提到上季 datacom 的類比 IC 有雙位數成長。我們是否應該假設，這對本季的 datacom 成長有一些貢獻，而往後的成長可能更多是由雷射以及可能是既有（legacy）產品帶動，而不是由類比 IC 帶動？還是其實不是這樣？

Well, I mean percentage-wise, sure, that's -- we have a fully mature position, leadership share on the analog side, and we're a relatively new entrant with the lasers. But in spirit, I'd put it this -- there's a lot of moving parts, and both on the analog side as well as the laser side. We're in a relatively supply constrained or supply-defined growth curve. On the laser, it's simply because we're moving material from factory, multi-quarter production time, and you don't start uncontrolled with a step function in materials. So it's a controlled ramp as we described. Even in the analog side, lead times from our suppliers with those class of wafers are extended. So it's not like we can magically pull more material in. It's -- I think, it's one of the reasons why we've been able to hold share so well because our customers understand that whether it's us or our competitors, people aren't just sitting on infinite inventory to be able to react terribly to some share shift. So it's very methodical in terms of the growth. The unit growth is fantastic. Again, it's moderated with the changes in the ASPs. But I think from an operational execution standpoint, we're clicking on all cylinders in that business, and it looks like we're off to the races with the lasers there as well.

嗯，我的意思是，就占比而言，當然，是的——我們在類比端已經是完全成熟的布局，並且有領先的市占；而在雷射方面我們相對是新進者。但就精神上來說，我會這樣講——有很多變動因素，類比端與雷射端都是如此。我們處在相對供應受限、或說由供應所界定的成長曲線上。在雷射方面，純粹是因為我們要從工廠移出材料，生產週期跨越多個季度，你不會在材料上用階躍式的方式不受控地一下子拉升。所以如我們所描述，這是一個受控的爬坡。即使在類比端，我們供應商提供那一類晶圓的交期也拉長了。所以並不是我們能神奇地拉進更多材料。我想這也是我們能把市占守得這麼好的原因之一，因為客戶理解，不論是我們或競爭對手，大家都不可能坐擁無限庫存，能對某些市占移轉做出非常劇烈的反應。因此在成長上是非常有節奏、很有方法的。出貨量成長非常好。再次強調，這會受到 ASP 變化的調節。但我認為從營運執行的角度來看，我們在那個業務上是火力全開，而且看起來我們在那裡的雷射業務也正要起飛。

So it sounds pretty balanced. And just a follow-up, in terms of guidance, just wanted to make sure I understand. So given the design order you mentioned, should we expect industrial and defense down $2 million to $4 million sequential and the offset to be growth on the communication side? In that context, it sounds like datacom would be probably driving that based on some of your comments, but...

所以聽起來相當均衡。再追問一下，關於財測指引，我想確認我理解正確。所以依照你提到的設計訂單（design order），我們是否應該預期工業與國防業務將季對季下滑 200 萬到 400 萬美元，而抵銷的部分會來自通訊端的成長？在這個脈絡下，聽起來資料通訊可能會根據你的一些評論來驅動那個成長，但……

Well, actually so on the I&D side -- sorry, I didn't mean to cut you off. So on the I&D side, it grew 8% sequential having taken that hit on the aerospace and Chinese aerospace stuff. So that continues but it's not a sequential impact. I'm sorry, I missed half of your question. Is it about telecom or data centers?

嗯，其實在 I&D 這一塊——抱歉，我不是要打斷你。所以在 I&D 端，在航太以及中國航太相關業務受到那次衝擊之後，按季成長了 8%。所以那部分仍在延續，但不是按季的影響。抱歉，我漏聽了你問題的一半。你是問電信還是資料中心？

Well, no. The second half is predicated on the first half, and you just said there's no incremental impact, so that's fair enough. I think you were asked before about kind of the relative drivers of any sequential growth heading in the December quarter, and it sounds like you put datacom at the top of that list.

嗯，不是。後半段是以前半段為前提，而你剛剛說沒有額外的增量影響，所以這樣也合理。我想之前有人問過你，關於進入 12 月季度時任何按季成長的相對驅動因素，而聽起來你把數據通訊（datacom）放在清單最前面。

Yes. Datacom is yes, it clearly would be the strongest. I'd put it this way. I don't want to dodge the question. The end market health across all 3 is solid, okay? So we don't see an end market demand issue. The thing that we can't predict is -- one of the factors we calculated in is December tends to be a seasonally soft quarter. We have customers who manage their inventories down. We just don't know which customers and which product and which end market. So that kind of top level judgment that we apply and depending where and which products, it could show up weakening one versus others or all 3, just don't know. But there's nothing that we see in our portfolio that have been showing end market we've missed.

是的。數據通訊是的，它顯然會是最強的。我會這樣說。我不想迴避這個問題。三個終端市場的整體健康狀況都很穩健，好嗎？所以我們沒有看到終端市場需求的問題。我們無法預測的是——我們納入計算的一個因素是：12 月通常是季節性偏弱的一季。我們有些客戶會把庫存水位往下管理。我們只是不知道會是哪一些客戶、哪一些產品、以及哪一個終端市場。因此我們在高層做的那種判斷，會依據不同地區與不同產品而定，可能會表現為某一個比其他的更弱，或三個都變弱，我們就是不知道。但在我們的產品組合中，沒有任何我們看到的跡象顯示我們錯過了終端市場的變化。

(Operator Instructions) Our next question will come from the line of Richard Shannon with Craig-Hallum.

（接線員指示）下一個問題來自 Craig-Hallum 的 Richard Shannon。

I'll just ask one question and jump out of line here on gross margins for you, Bob. You talked about a goal of getting to 60% that you've held for quite some time, and it sounds like we're on a trajectory moving that way. Maybe if you can give us some help on a multi-quarter trajectory of perhaps what kind of revenues do you need to get to that. And are there any puts and takes either above or below incremental gross margins that allow you to get to that level? Any way you can help us kind of track that path over the next few quarters as you continue to grow.

我只問一個問題，然後就先退出隊列，關於毛利率的問題，Bob。你談到一個長期以來一直維持的目標：達到 60%，而聽起來我們正沿著那個方向前進。也許你能幫我們理解一下跨多個季度的軌跡：大概需要什麼樣的營收水準才能達到那個目標？另外，在增量毛利率之上或之下，有沒有任何拉鋸因素（puts and takes）能讓你達到那個水準？你能否協助我們在未來幾個季度、隨著你們持續成長時，追蹤這條路徑？

Richard, in the context and again, beholding to our 1 quarter guide at a time, I'll give some flavors of what drives mix that increases gross margin. And let me start with lasers. We talked about the improvement in yields, as John talked about in his prepared remarks, incrementally increasing yields significantly contributes to gross margin expansion over the course of fiscal '19. Our field trials that are supporting 5G rollouts, both internationally as well as in North America have very high-margin products. They're mature technologies and priced the right way, all of which contributing to continued growth on the top line and continued margin expansion as we march through the year.

Richard，在這個脈絡下，而且再次強調，我們一次只提供一個季度的指引，我會給你一些關於哪些因素驅動產品組合（mix）進而提升毛利率的方向。我先從雷射產品談起。我們談過良率的改善，正如 John 在事先準備的發言中提到的，逐步且顯著地提升良率，對 2019 財年整體期間的毛利率擴張有很大的貢獻。我們支援 5G 部署的現場測試（field trials），不論在國際市場或北美，都包含毛利率非常高的產品。這些是成熟技術，定價也恰當，所有這些都在推動營收持續成長，並在我們今年一路推進的過程中帶來持續的毛利率擴張。

And our next question will come from the line of Vivek Arya with Bank of America.

下一個問題來自美國銀行（Bank of America）的 Vivek Arya。

Question on China. You mentioned that recovery's complete. I'm curious how much is China as a percentage of sales now? Was there any abnormal buying because of the tariff-type issues? And are there any steps that you're taking to make sure the industry kind of avoid some of inventory issues that we saw over the last year?

關於中國的問題。你提到復甦已經完成。我想了解一下，目前中國占銷售額的比例是多少？是否因為關稅類型的問題而出現任何異常的提前採購？另外，你們是否採取任何措施，確保產業能避免我們在過去一年看到的一些庫存問題？

Vivek, so China business this year was up by about 130 basis points over the last quarter, which is a 29 and change of total revenues. And again, it goes across multiple markets. It would have been higher if we could have shipped to the aerospace customers. But that, from our peak at almost 40% of revenues, still have some room for recovery just in China alone. Some of that reduction of revenues, as we've talked about in the past, some of the products we're offering are next-generation products at lower ASPs, no effect on gross margin contribution but a different revenue mix in markets, some of the more mature markets we've talked about. No, we don't see abnormal buying ahead of any government-imposed, whether U.S. tariff or China tariff at the moment. As John talked about, we do see seasonality in China, particularly in our first fiscal quarter, and this is what we expect to continue here. So we see no unusual buying pattern as we sit here today nor are the orders coming in a way that would suggest something different.

Vivek，所以今年中國業務相較上一季大約增加了 130 個基點，占總營收約 29% 多一些。而且同樣地，它涵蓋多個市場。如果我們能出貨給航太客戶，這個比例本來會更高。但從我們高峰期接近營收 40% 的水準來看，光是中國本身仍有一些復甦空間。如同我們過去談到的，部分營收下滑是因為我們提供的一些產品是下一代產品、ASP 較低；這對毛利率貢獻沒有影響，但在市場上形成不同的營收組合，尤其是在我們提過的一些較成熟市場。不，我們目前沒有看到在任何政府施加的措施之前出現異常採購，不論是美國關稅或中國關稅。如 John 所說，我們確實看到中國的季節性，特別是在我們的第一個財政季度，而這也是我們預期會持續的情況。因此，就我們目前所見，沒有不尋常的採購模式，訂單進來的方式也沒有顯示任何不同的跡象。

Very helpful, Bob. For my follow-up, I was hoping you could talk about the competitive landscape in PAM-4. I think one of your competitors has spoken about a lot of design wins. How important is gaining market share in PAM-4 to what you are thinking about in 2019 from a top line growth perspective?

非常有幫助，Bob。我的追問是，希望你能談談 PAM-4 的競爭態勢。我想你們的一位競爭對手提到有很多設計導入（design wins）。從 2019 年營收成長（top line growth）的角度來看，在 PAM-4 取得市占率對你們的思考有多重要？

Good question. So first of all, we're a little bit different than I think people you are referring to. We have a very strong position inside the data center where -- with the stuff that is in very high volume today. So PAM-4 even with a 100% market share, go to the extreme, it contributes meaningfully. I don't want to say it's not meaningful, but it's not a huge swing factor in terms of our data center business. It's not like the lasers, the lasers we're addressing, the 90-something percent of demand, which is CWDM4. So I don't want to understate the importance of PAM-4 on a go-forward basis because more and more are important. I think the other thing, the confusion factor, is -- probably the big one is when we inherited AppliedMicro, they had pursued, I call it, a quality design win program rather than a quantity design win program, meaning the people they have are the people who matter in a big way. And we've sustained those and supported those and those that you're referring to. They also tend to be the people that we can't talk about publicly because they're the people who hold their strategy near and dear to their hearts. They don't appreciate us telegraphing to the world what they're doing. Lastly, I think that there's a lot of swirl and confusion about 400-gig versus 100-gig PAM-4. And the thing I would caution people is we're a semiconductor vendor, not a transceiver guy. And PAM-4 at 400-gig at least is similar to where CWDM4 was about 3 years ago, I would say, is probably the analogy. So in that early part of the ramp, there's meaningful transceiver business. You can -- you have a nice transceiver business. But in terms of return on investment and material revenue, as a semiconductor provider, you have to go where the volume is. And that's the reason why we are fixated right now on 100-gig because if you look at the customer forecast for 100-gig, they start to meaningfully overlay on top of CWDM4, and that's where we're fixated. In terms of our position at 100-gig, to be honest, we don't see anybody right now with a product that meets the power budgets, that has production mass sets that can move into mainstream manufacturing in the next year. So I think we're pretty comfortable with our share position and the guys that we've been servicing, who I think are the market makers. So it will be nice, I think it will contribute to top line growth. But at least for the next year, it's -- the mix is much more towards CWDM4. I think that changes, by the way, as you move forward over the coming 3 years. But when we're talking about next year, which is what we intend to talk about now rather than over the horizon, PAM-4 has a very modest contribution in terms of wins.

好問題。首先，我們跟你所指的那些人，我想是有點不一樣。我們在資料中心內部有非常強的地位——就目前出貨量非常高的那些產品而言。所以即便 PAM-4 在極端情況下拿到 100% 的市占，它也會有相當程度的貢獻。我不想說它不重要，但就我們的資料中心業務而言，它不是那種會造成巨大波動的關鍵因素。它不像雷射，我們所切入的雷射市場，需求有 90% 多是 CWDM4。因此我不想低估 PAM-4 在未來的重要性，因為它會變得越來越重要。我認為另一個造成混淆的因素——可能最大的——是我們併入 AppliedMicro 時，他們採取的是我所稱的「品質型設計導入（design win）計畫」，而不是「數量型設計導入計畫」，也就是說，他們拿下的客戶都是在很大程度上真正重要的客戶。而我們也一直維持並支持這些客戶，也就是你所提到的那些。但他們往往也是我們無法公開談論的客戶，因為他們非常重視並保密自己的策略。他們不希望我們向全世界放話他們在做什麼。最後，我認為市場上對 400G 與 100G PAM-4 之間有很多雜音與混淆。我要提醒大家的是，我們是半導體供應商，不是收發器（transceiver）廠。而至少在 400G 的 PAM-4 上，它目前的狀態我會說類似於 CWDM4 大約 3 年前的情況，這大概是個類比。所以在爬坡初期，收發器業務是有相當意義的。你可以——你會有一個不錯的收發器生意。但就投資報酬與實質營收而言，作為半導體供應商，你必須去追逐有量的地方。這也是為什麼我們現在聚焦在 100G：因為如果你看客戶對 100G 的預測，它開始在數量上明顯疊加到 CWDM4 之上，而這就是我們聚焦的原因。就我們在 100G 的地位而言，坦白說，我們目前看不到有人有產品能符合功耗預算、且具備量產用的光罩組（mass sets），能在未來一年內進入主流製造。所以我認為我們對自己的市占地位以及我們一直服務的那些客戶（我認為他們是市場的制定者）相當有信心。因此我想這會很好，並且會對營收成長有所貢獻。但至少在接下來一年，產品組合仍然更偏向 CWDM4。順帶一提，我認為隨著未來 3 年的推進，這個情況會改變。但當我們談的是明年——也就是我們現在打算談的，而不是更遠的未來——PAM-4 在設計導入的貢獻上是非常溫和的。

And our next question will come from Tore Svanberg with Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

John, maybe a follow-up on the last question. So if we look at the market next year, what are you expecting for ports -- 100-gig PAM-4 ports next year? Are you still expecting close to 10 million ports for CWDM4?

John，針對上一題也許再追問一下。如果我們看明年的市場，你預期明年的埠數（ports）——100G PAM-4 的埠數會是多少？你仍然預期 CWDM4 接近 1,000 萬個埠嗎？

Yes, I got to be careful because if I talk about our ports now, I'm going to be telegraphing what our customers' forecasts are. So I'd like to get back to you, to be honest, so I can pull one of the market reports from one of the analysts so that I'm not inappropriately sharing customer information. But I would say, let me generalize and say PAM-4 will be well less than 10% of the ports relative to CWDM4. Maybe that helps.

是的，我得小心，因為如果我現在談我們的埠數，就等於在對外透露我們客戶的預測。所以老實說，我想之後再回覆你，讓我先從某位分析師的市場報告中引用，這樣我就不會不恰當地分享客戶資訊。但我可以概括地說，PAM-4 的埠數會遠低於 CWDM4 的 10%。也許這樣有幫助。

That makes sense. And as my follow-up, could you maybe go through a little bit sort of the -- some of the signposts that we should be following when it comes to the capacity ramps for GaN? So obviously, you have that partnership with ST, CapEx is probably going on right now. When will the capacity be up and running at least as far as meaningful revenue is concerned?

這很合理。那我接著追問，你能否稍微談一下——關於 GaN 產能爬坡，我們應該關注哪些里程碑指標？很明顯你們與 ST 有合作夥伴關係，資本支出（CapEx）現在可能正在進行。就能帶來有意義營收而言，產能何時會上線運轉？

Well, we have meaningful revenue today, not that meaningful. But the spirit of your question is when does it turn into an inflection point to really be the secular growth driver that we talk about, I would say as you go each quarter through the second latter part of 2019, if you look at general market reports of 5G deployments, the way you get into '19, but where it really gets describing that the customers are very concerned about supply is when you get into the following year, 2020. And '21, '22 are -- actually, I would say even '20, '21 and '22 are very intense years in terms of the build-out of the profile that our customers have given us. So I don't want to create the impression that this is a step function in the present tense in the first half of next year. But I can tell you the design of the programs are very, very real.

嗯，我們今天就已經有有意義的營收，只是還沒到那麼顯著。但你問題的核心是：它何時會成為拐點，真正成為我們所談的那種結構性成長驅動力？我會說，當你在 2019 年下半年逐季往前看，如果你看 5G 部署的一般市場報告，2019 年會逐步進入狀態，但真正開始描述到客戶非常擔心供應的時點，是進入隔年，也就是 2020 年。而 2021、2022——其實我會說甚至 2020、2021、2022——就客戶給我們的建置曲線而言，都是非常密集的年份。所以我不想讓大家以為這會在明年上半年、以現在的語氣呈現為一個階梯式的跳升。但我可以告訴你，這些專案的設計與規劃都非常、非常真實。

That concludes our question-and-answer session for today. So now it's my pleasure to hand the conference back over to John Croteau, Chief Executive Officer, for closing comments or remarks.

以上是我們今天的問答環節。接下來很高興把會議交回給執行長 John Croteau，請他做結語或補充說明。

Great. Thanks. So before closing on today's call, I will mention that we'll be attending a number of investor events between now and year-end, including the Raymond James technology conference on December 3 in New York, Barclays' Global TMNT conference on December 5 in San Francisco, Cowen's networking and cybersecurity summit on December 11 in New York and then the D.A. Davidson Laser/Optical Forum in December 13 in Boston. If you'd like to arrange a meeting at one of these upcoming events, please e-mail us at ir@macom.com (sic) [ir@macomtech.com].

很好。謝謝。在結束今天的電話會議之前，我要提一下，從現在到年底我們會參加多場投資人活動，包括 12 月 3 日在紐約舉行的 Raymond James 科技研討會、12 月 5 日在舊金山舉行的 Barclays 全球 TMNT 研討會、12 月 11 日在紐約舉行的 Cowen 網路與資安高峰會，以及 12 月 13 日在波士頓舉行的 D.A. Davidson 雷射／光學論壇。如果你想在上述即將到來的活動中安排會面，請寄電子郵件至 ir@macom.com（原文如此）[ir@macomtech.com]。

That concludes today's remarks. Operator, you may now disconnect the call.

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 does conclude the program and you may all disconnect. Everybody, have a good 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，大家都可以掛線。祝各位有美好的一天。