MACOM Technology Solutions Holdings, Inc. (MTSI) 2013 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by, and welcome to the M/A-COM Technology Solutions first fiscal quarter 2013 financial results conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session and instructions will follow at the time. (Operator Instructions). As a reminder this conference may be recorded. It is now my pleasure to turn the call over to Leanne Sievers of the Shelton Group, the investor relations agency for M/A-COM. Please go ahead.

各位女士、先生，大家好，感謝您稍候，歡迎參加 M/A-COM Technology Solutions 2013 會計年度第一季財務業績電話會議。此刻，所有與會者將以僅收聽模式參與。稍後我們將進行問答環節，屆時將提供相關指示。（接線員指示）提醒您，本次會議可能會被錄音。現在我很榮幸將電話交給 Shelton Group（M/A-COM 的投資人關係代理機構）的 Leanne Sievers。請開始。

Good afternoon, and welcome to M/A-COM Technology Solutions Holdings Inc first quarter of fiscal 2013 earnings conference call. I'm Leanne Sievers, Executive Vice President of Shelton Group, M/A-COM's investor relations firm. With us today are M/A-COM's President and Chief Executive Officer, John Croteau; and Chief Financial Officer, Conrad Gagnon.

各位下午好，歡迎參加 M/A-COM Technology Solutions Holdings Inc 2013 會計年度第一季財報電話會議。我是 Shelton Group 執行副總裁 Leanne Sievers，亦為 M/A-COM 的投資人關係公司。今天與會的有 M/A-COM 總裁兼執行長 John Croteau，以及財務長 Conrad Gagnon。

Before I turn the call over to Mr. Croteau, I'd like to remind our listeners that management's prepared remarks contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions.

在我把電話交給 Croteau 先生之前，我想提醒各位聽眾，管理層的事先準備發言包含前瞻性陳述，該等陳述受風險與不確定性影響；此外，管理層也可能在回覆各位提問時作出額外的前瞻性陳述。

Therefore, the Company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties that could result in those differences in the Company's filings with the Securities and Exchange Commission, including its form 8K filed today, and its annual report on form 10-K filed on November 28, 2012. In addition, any projections as to the Company's future performance represents managements estimates as of today, January 29, 2013. M/A-COM assumes no obligation to update these projections in the future, as market conditions may or may not change.

因此，本公司主張適用《1995 年私人證券訴訟改革法案》（Private Securities Litigation Reform Act of 1995）中所載之前瞻性陳述「安全港」保護。實際結果可能與今日討論內容存在重大差異，因此我們請您參閱本公司向美國證券交易委員會（SEC）提交之文件中，對可能導致該等差異之風險與不確定性的更詳細討論，包括本日提交的 8-K 表格，以及於 2012 年 11 月 28 日提交的 10-K 表格年度報告。此外，任何對本公司未來表現的預測，均代表管理層截至今日（2013 年 1 月 29 日）的估計。M/A-COM 不承擔於未來更新該等預測之義務，因市場狀況可能改變亦可能不改變。

Additionally, the Company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. These financial measures, and the reconciliation of GAAP to non-GAAP results, are provided in the Company's press release and related current report on form 8K, which was filed with the Securities and Exchange Commission today, and can be found at the investor relations section of M/A-COM's website at www.macomtech.com. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 30 days in the investor relations section of M/A-COM's website.

此外，本公司新聞稿以及本次電話會議期間管理層的陳述，將包含以 GAAP 與非 GAAP 口徑呈現之若干衡量指標與財務資訊。該等財務衡量指標，以及 GAAP 與非 GAAP 結果之調節表，已載於本公司新聞稿及相關之 8-K 表格即時報告中；該報告已於今日向美國證券交易委員會提交，並可於 M/A-COM 官網 www.macomtech.com 的投資人關係專區查閱。若您此刻無法收聽完整會議，錄音將以網路直播回放形式於 M/A-COM 官網投資人關係專區提供 30 天。

And now I'll turn the call over to M/A-COM's President and CEO, John Croteau, Mr. Croteau, please go ahead.

現在我將電話交給 M/A-COM 總裁兼執行長 John Croteau。Croteau 先生，請開始。

Thank you, Leanne. Welcome, everyone, and thank you for joining us today.

謝謝你，Leanne。歡迎各位，感謝大家今天加入我們。

I'd like to begin today's call with an overview of our first quarter results, and then review our end markets and the progress we continue to make towards executing our growth strategy. Once completed, I'll turn the call over to Conrad Gagnon, our CFO, who will review our financial performance in further detail. I will then conclude today's prepared comments by providing our guidance for the second fiscal quarter, before opening the call for questions. Revenue for the first quarter was $75 million representing a 1% increase over the prior quarter, and a 3% increase year-over-year.

我想先以第一季業績概覽作為今天電話會議的開場，接著回顧我們的終端市場，以及我們在執行成長策略方面持續取得的進展。完成後，我會把電話交給我們的財務長 Conrad Gagnon，由他更詳細說明我們的財務表現。之後我將以提供第二會計季的展望作為今天事先準備發言的結尾，並在開放提問前結束。第一季營收為 7,500 萬美元，較前一季成長 1%，較去年同期成長 3%。

Non-GAAP gross margin was 44%, and non-GAAP net income was $9.7 million or $0.20 per diluted share. We finished the quarter with $92.6 million in cash equivalents and investments, no debt, and an untapped credit line of $150 million. Overall, our revenue and earnings per share results were within our previously announced range of expectations.

非 GAAP 毛利率為 44%，非 GAAP 淨利為 970 萬美元，或稀釋後每股 0.20 美元。本季結束時，我們持有 9,260 萬美元的約當現金與投資，無負債，且有一筆 1.5 億美元尚未動用的授信額度。整體而言，我們的營收與每股盈餘結果均落在先前公布的預期區間內。

During the quarter, our Automotive sales continued to out perform. As a result of this success, and as our relationship with Ford begins to mature, it has led us to the decision to report Automotive as our fourth end market moving forward. Automotive sales have proven to be a strong growth contributor, and are accretive to our Corporate operating margins, and we will continue to manage it as such. We believe we have effectively realized full market penetration with our key customer, Ford, and we expect any further growth to be only a reflection of market share gains by Ford. Moving forward, we expect the Ford relationship will remain a stable and rewarding one for years to come.

本季期間，我們的汽車業務銷售持續優於預期。基於此一成果，且隨著我們與 Ford 的合作關係逐步成熟，我們決定自今以後將汽車業務列為第四個終端市場進行揭露。汽車業務銷售已證明是強勁的成長貢獻來源，並且對公司整體營業利益率具有增益效果（accretive），我們將持續以此方式加以管理。我們相信，針對主要客戶 Ford，我們已有效達成全面的市場滲透；我們預期後續任何成長僅會反映 Ford 市占率提升所帶來的影響。展望未來，我們預期與 Ford 的合作關係將在未來多年保持穩定且具回報。

Taking a closer look at our revenue by market, 23% of our first quarter revenue was from Networks, 28% from Aerospace & Defense, 21% for Multimarket, and 28% from Automotive, of which 26% was Ford. Now, I would like to share with you some refinements to our strategy, which I believe will help us stay laser focused on our long-term goals of generating growth, driving margin expansion and improving our operational efficiency.

更進一步檢視按市場別的營收結構，第一季營收中 23% 來自網路（Networks），28% 來自航太與國防（Aerospace & Defense），21% 來自多元市場（Multimarket），28% 來自汽車（Automotive），其中 26% 來自 Ford。接下來，我想與各位分享我們策略上的一些精進調整；我相信這將有助於我們更聚焦於長期目標：帶動成長、推動毛利率擴張，以及提升營運效率。

Going forward you will hear us talk about our standard catalog products as a standout six plus decade leader within the high performance RF and microwave market. In some cases, we lead the market in specific product categories. For instance, we believe we hold majority share in the RF microwave diode market by a factor of two over our nearest competitor. We are also number one in pulse power transistors. We believe this renewed focus on our historical core strengths will allow us to better maximize near-term results from off-the-shelf products.

未來您將聽到我們談到：我們的標準型目錄產品（standard catalog products）是高性能 RF 與微波市場中，領先超過六十年的卓越領導者。在某些情況下，我們在特定產品類別中引領市場。舉例而言，我們相信在 RF 微波二極體市場，我們的市占率以兩倍於最接近競爭對手的幅度居於領先。我們在脈衝功率電晶體方面亦排名第一。我們相信，重新聚焦於歷史核心優勢，將使我們能更有效地最大化現貨型（off-the-shelf）產品在短期內的成果。

The rest of our RF product lines experienced what we believe was the bottom of the cycle during Q1, which is consistent with guidance from our peers and industry experts. Specifically, Networks and A&D were done from last quarter, due to what we believe was our customer's year-end inventory management, especially in Asia. We finished the quarter with a non-GAAP gross margin of 34% (sic -see press release 43%), which is at the lower end of our guidance, due to the previously mentioned strength in Automotive sales relative to our other markets. However, we believe we have seen the bottom of the trough, as we saw growth in our flagship diode product line, which has traditionally served as a leading indicator of overall market demand.

我們其餘的 RF 產品線在第一季出現我們認為的景氣循環底部，這與同業及產業專家的指引一致。具體而言，網路與航太國防相較上一季下滑，我們認為主要原因是客戶在年末進行庫存管理，尤其是在亞洲。我們以非 GAAP 口徑結束本季，毛利率為 34%（原文如此——請參閱新聞稿為 43%），落在我們指引區間的低端，原因在於前述汽車銷售相對於其他市場的強勁表現。然而，我們相信我們已看到谷底，因為我們看到旗艦二極體產品線出現成長；該產品線傳統上一直是整體市場需求的領先指標。

Quarter-on-quarter diode sales grew across all markets and applications, and order backlog has grown to support growth in to Q2. Networks, as expected, was down last quarter. We believe this was largely due to year-end inventory management. We have not yet seen a lift in the wireless backhaul demand, and do not anticipate recovery in fiscal Q2. However, we believe substantial bookings from our new optoelectronics products will be a key growth driver in fiscal Q2, with continued momentum moving into the second half of the year.

二極體銷售在各市場與各應用領域皆呈現季對季成長，訂單積壓（order backlog）亦增加，足以支撐第二季的成長。 如預期所示，網路業務在上一季下滑。我們認為這主要是年末庫存管理所致。我們尚未看到無線回程（wireless backhaul）需求回升，且不預期在 2013 會計年度第二季復甦。然而，我們相信來自新光電（optoelectronics）產品的大量接單（bookings）將成為 2013 會計年度第二季的關鍵成長動能，並在下半年持續延續動能。

Gross margin from these new optoelectronic products is well above Corporate average. In the Aerospace & Defense market, we experienced a slight decline in revenue in fiscal Q1, once again mainly due to inventory management, this time an Asian radar programs. Our outlook in A&D is flat moving into fiscal Q2. While the prospect of potential sequestration in 2013 is a sobering one for anyone supplying the US defense market, we believe that the diversity of the US defense-related business, limits the risk to only a few percent of our total sales. We are optimistic we will see growth in Q3 as new satellite communications products, as well as new customers ramp into production. Consistent with our previously announced strategy, we continue to build out our innovative product portfolio, releasing 28 new products this quarter, specifically 13 in Networks, 12 in Aerospace & Defense, and 3 in Multimarket.

這些新光電產品的毛利率遠高於公司平均水準。在航太與國防市場方面，我們在 2013 會計年度第一季的營收小幅下滑，再次主要是因庫存管理所致，這次發生在亞洲的雷達專案。我們對航太國防在進入 2013 會計年度第二季的展望為持平。雖然 2013 年可能出現的自動減支（sequestration）對任何供應美國國防市場的廠商而言都是令人警醒的前景，但我們相信，由於美國國防相關業務的多元性，風險可被限制在我們總銷售額的僅數個百分點。我們樂觀預期第三季將看到成長，因為新的衛星通訊產品以及新客戶將逐步放量進入量產。依循我們先前公布的策略，我們持續擴充創新產品組合，本季共發布 28 項新產品，其中網路 13 項、航太與國防 12 項、多元市場 3 項。

In summary, the overall business environment remains very challenging, however, we believe our strong execution and renewed focus on core strengths will deliver growth next quarter consistent with our strategic plan.

總結而言，整體商業環境仍然非常具挑戰性；然而，我們相信憑藉強勁的執行力以及重新聚焦於核心優勢，將能在下個季度實現與我們策略計畫一致的成長。

With that, I will now turn the call over to Conrad to discuss the financial results for the first quarter of 2013.

接下來，我將把電話會議交給 Conrad，由他說明 2013 年第一季的財務結果。

Thank you, John, and good afternoon, everyone.

謝謝你，John，各位下午好。

During the course of my comments, as well as those made by John, with the exception of revenue, all income statement amounts and percentages will be discussed on a non-GAAP basis. Unless otherwise indicated, each reference will be to an amount or percentage that excludes stock-based and other non-cash compensation, intangible asset amortization, restructuring costs, optimized litigation costs, fair value adjustments, amortized financing costs recorded as interest expense, as well as certain income tax items. In addition, cash flow from operations for the first quarter is discussed on a non-GAAP basis. These non-GAAP measures are provided to enhance understanding of our core operating performance.

在我接下來的評論以及 John 的發言中，除營收外，損益表上的所有金額與百分比都將以非 GAAP 基礎進行討論。除非另有說明，每一處提及的金額或百分比均指排除股票基礎及其他非現金薪酬、無形資產攤銷、重組成本、最佳化訴訟成本、公允價值調整、作為利息費用入帳之攤銷融資成本，以及若干所得稅項目之後的數字。此外，第一季的營運活動現金流亦以非 GAAP 基礎討論。提供這些非 GAAP 指標是為了增進對我們核心營運表現的理解。

With this in mind, let me now begin with a review of our financials for the first quarter of fiscal 2013. Revenue for the first quarter of fiscal 2013 was $75 million compared to $74.6 million in the fourth quarter of 2012, and an increase of 3% compared to $73 million in the first quarter of 2012. Revenue in the quarter was driven by strength in sales for our Automotive products, but largely offset by softness in the Network, and Aerospace & Defense markets.

基於上述前提，接下來我先回顧 2013 會計年度第一季的財務表現。2013 會計年度第一季營收為 7,500 萬美元，較 2012 年第四季的 7,460 萬美元增加，並較 2012 年第一季的 7,300 萬美元成長 3%。本季營收主要受惠於汽車產品銷售強勁，但網路以及航太與國防市場的疲弱在很大程度上抵銷了這項成長。

As John mentioned, beginning this quarter we are breaking out Automotive as a separate end market. As such, the revenue split among our four primary end markets in the first quarter was -- Networks, 23%; Aerospace & Defense, 28%; Automotive, 28%; and Multimarket, 21%. By way of comparison, the prior quarter revenue split among these four primary end markets was Networks, 28%; Aerospace & Defense, 30%; Automotive, 21%; and Multimarket, 21%. Gross profit in the first quarter was $33 million, or 44% of revenue, compared to $32.7 million, or 43.9% of revenue, in the prior quarter, and $31.8 million, or 43.6%, in the prior year quarter.

如 John 所提，自本季起我們將汽車（Automotive）獨立列為一個終端市場。因此，第一季四大主要終端市場的營收占比分別為：網路 23%；航太與國防 28%；汽車 28%；以及多元市場（Multimarket）21%。作為比較，上一季這四大主要終端市場的營收占比分別為：網路 28%；航太與國防 30%；汽車 21%；以及多元市場 21%。第一季毛利為 3,300 萬美元，佔營收 44%，相較上一季為 3,270 萬美元、佔營收 43.9%，而去年同期為 3,180 萬美元、佔營收 43.6%。

Our gross margins expanded over the prior quarter, and prior year quarter, despite the mix shift with lower gross margin Automotive products. Our long-term focus continues to be on improving gross margin through increased sales of higher margin new products, market growth and channel efficiencies, as well as further cost reductions. In terms of our operating expenses for the first fiscal quarter, total operating expenses were $19.2 million, compared to $17.4 million last quarter, and $20.4 million in the prior year quarter. Looking specifically at investments in new products, our research and development expense for the first quarter was $9.5 million, compared to $7.6 million in the prior quarter, which was lower than typical due to $900,000 of favorable foreign research credits in the prior quarter. And compared to $9.8 million in the first quarter of 2012.

儘管產品組合轉向毛利率較低的汽車產品，我們的毛利率仍較上一季及去年同期擴張。我們的長期重點仍是透過提高高毛利新產品銷售、推動市場成長與通路效率，以及進一步降低成本來改善毛利率。就第一會計季的營業費用而言，總營業費用為 1,920 萬美元，較上一季的 1,740 萬美元增加，並低於去年同期的 2,040 萬美元。就新產品投資而言，第一季研發費用為 950 萬美元，較上一季的 760 萬美元增加；上一季偏低主要是因為有 90 萬美元的有利海外研發抵減（foreign research credits）。相較之下，2012 年第一季研發費用為 980 萬美元。

R&D, as a percentage of revenue, represented 12.7% in the first quarter, compared to 10.2% in the previous quarter and 13.4% in the prior year quarter. We plan to continue investing in R&D at similar rates to further the advancements of our new product development efforts. Selling, general and administrative expenses were $9.7 million, compared to $9.8 million in the fourth quarter of 2012, and $10.6 million in the prior year quarter. As a percentage of revenue, SG&A represented 12.9% in the first quarter, compared to 13.2% in the previous quarter, and 14.6% in the prior year quarter. We plan to continue managing SG&A to get our OpEx to the 25% target.

研發費用佔營收比重在第一季為 12.7%，相較上一季為 10.2%，去年同期為 13.4%。我們計畫以類似的投入比率持續投資研發，以推進新產品開發工作的進展。銷售、一般及行政費用（SG&A）為 970 萬美元，相較 2012 年第四季為 980 萬美元，去年同期為 1,060 萬美元。以營收百分比計，第一季 SG&A 佔 12.9%，相較上一季為 13.2%，去年同期為 14.6%。我們計畫持續管理 SG&A，使我們的營業費用（OpEx）達到 25% 的目標。

Income from operations was $13.8 million or 18.4% of revenue. This compares to $15.3 million or 20.5% of revenue in the prior quarter, and $11.4 million or 15.6% of revenue in the prior year quarter. We expect operating margins will lift over time as we maintain our 25% OpEx model, and gross margin expands through the growth of new high-margin product, and the introduction of operational efficiencies.

營業利益為 1,380 萬美元，佔營收 18.4%。相較之下，上一季為 1,530 萬美元、佔營收 20.5%，去年同期為 1,140 萬美元、佔營收 15.6%。我們預期，隨著我們維持 25% 的 OpEx 模型，且透過高毛利新產品成長與導入營運效率提升而帶動毛利率擴張，營業利益率將隨時間推升。

Turning to income taxes, our effective income tax rate during the first quarter was 30%. The expected extension of the US R&D tax credit beyond December 31, 2011, was not signed into law until January, 2013. And, therefore, the effective tax rate for the first quarter of 2013 does not reflect any benefit from these credits. Our anticipated effective tax rate for 2013 is 29%.

就所得稅而言，第一季的有效所得稅率為 30%。原預期延長至 2011 年 12 月 31 日之後的美國研發稅額抵減（US R&D tax credit），直到 2013 年 1 月才正式簽署成為法律。因此，2013 年第一季的有效稅率未反映這些抵減所帶來的任何利益。我們對 2013 年的預估有效稅率為 29%。

Our first quarter net income was $9.7 million, or $0.20 per diluted share, compared to fourth quarter net income of $10.4 million, or $0.22 per diluted share, and net income of $7.7 million, or $0.19 per diluted share in the prior year quarter. The share count used to compute EPS was 47.6 million shares for the first quarter, 47.4 million shares for the fourth quarter, and 41.5 million shares in the prior year period.

第一季淨利為 970 萬美元，稀釋後每股盈餘為 0.20 美元；相較 2012 年第四季淨利為 1,040 萬美元、稀釋後每股盈餘為 0.22 美元；去年同期淨利為 770 萬美元、稀釋後每股盈餘為 0.19 美元。用於計算 EPS 的股數為：第一季 4,760 萬股、第四季 4,740 萬股、去年同期 4,150 萬股。

Turning to the balance sheet, as of December 28, 2012, our cash and cash equivalents were $92.6 million, which represents an increase of $8 million for the quarter. During the quarter, we made a final earnout payment of $6 million to [Kavum] related to the acquisition of the business in 2009. Cash flow from operations for the first fiscal quarter was $14.4 million, compared to $9.1 million in the previous quarter, and $8.3 million for the prior year quarter. We have zero debt, and a revolving credit facility of $150 million for additional liquidity.

接著看資產負債表，截至 2012 年 12 月 28 日，我們的現金及約當現金為 9,260 萬美元，較本季增加 800 萬美元。本季我們就 2009 年收購該業務向 [Kavum] 支付了最後一筆 600 萬美元的或有對價（earnout）款項。第一會計季的營運活動現金流為 1,440 萬美元，相較上一季為 910 萬美元，去年同期為 830 萬美元。我們沒有任何負債，並有 1.5 億美元的循環信用額度（revolving credit facility）以提供額外流動性。

Accounts receivable of $52.1 million represent 63 days sales outstanding, which compares to $54.2 million, and 66 days sales outstanding at the end of the prior quarter. Inventory was $58.6 million, a $1.2 million increase from $57.5 million in the prior quarter. Inventory turns were 2.9 in both quarters. Capital expenditures in the first quarter were $1.6 million, or 2.1% of revenue, compared to 2.9% of revenue in the prior quarter. We believe capital expenditure for the fiscal year will be within the range of 3% to 4% of revenue. Depreciation expense on property and equipment for the fiscal first quarter was $2.6 million.

應收帳款為 5,210 萬美元，代表銷售天數（DSO）為 63 天；相較上一季期末應收帳款為 5,420 萬美元、DSO 為 66 天。存貨為 5,860 萬美元，較上一季的 5,750 萬美元增加 120 萬美元。兩季的存貨週轉率皆為 2.9。第一季資本支出為 160 萬美元，佔營收 2.1%，相較上一季佔營收 2.9%。我們認為本會計年度的資本支出將落在營收的 3% 至 4% 區間。第一會計季不動產、廠房及設備的折舊費用為 260 萬美元。

I will now turn the call back over to John who will provide our Business outlook for the second quarter of fiscal 2013.

接下來我把電話會議交回給 John，由他提供 2013 會計年度第二季的業務展望。

Thanks, Conrad. In the second quarter ending March 29, 2013, we currently expect revenue to be in the range of $75 million to $80 million, non-GAAP gross margin between 44% and 45%, and non-GAAP earnings per diluted share between $0.20 and $0.24 based on an expected 48 million shares outstanding. As of today, we have already shipped or are presently firm (inaudible) for 87% of the midpoint of our revenue range. Operator, we can now open the call to questions.

謝謝你，Conrad。對於截至 2013 年 3 月 29 日的第二季，我們目前預期營收將介於 7,500 萬至 8,000 萬美元之間，非 GAAP 毛利率介於 44% 至 45% 之間，且在預期流通在外股數為 4,800 萬股的基礎上，非 GAAP 稀釋後每股盈餘介於 0.20 至 0.24 美元之間。截至今天，我們已經出貨或目前已確定（聽不清）達到我們營收區間中點的 87%。接線員，我們現在可以開放提問。

(Operator Instructions)

（接線員指示）

Blayne Curtis with Barclays.

巴克萊（Barclays）的 Blayne Curtis。

Hi, good afternoon guys and congrats on the good results and guides. Maybe to start with, John, if you could just talk about, you are actually seeing growth in the Q1, if you could just talk about which segments you are seeing the uptick in? Is it broad-based or is it some specific segment?

嗨，大家午安，恭喜你們有不錯的業績與指引。也許先從這裡開始，John，你們其實在第一季看到成長；你能談談你們看到哪些區隔出現回升嗎？是全面性的，還是某些特定區隔？

Sure. How are you doing, Blayne?

當然。Blayne，你好嗎？

Good.

很好。

So, the way I would describe it is, first of all, we had a positive book to bill, slightly over one in the first quarter. So there's relative strength, firm backlog across much of our business. The specific growth is coming from our Network segment, specifically in Auto. We have backlog that covers pretty much the entire growth, quarter on quarter. I will emphasize the fact that we are, in that Network segment, we are assuming no recovery in point-to-point wireless infrastructure. So if that were to happen, that would be only upside and push us towards the top end of our guidance.

所以，我會這樣描述：首先，我們第一季的接單出貨比（book-to-bill）為正，略高於 1。因此，我們在業務的很大一部分都有相對強勁、穩健的在手訂單。具體的成長來自我們的網路（Network）部門，特別是在車用（Auto）。我們的在手訂單幾乎涵蓋了全部的季對季成長。我也要強調，在該網路部門中，我們的假設是不包含點對點無線基礎建設的復甦。因此，如果那真的發生了，那只會是額外上行，並推動我們朝指引區間的上緣前進。

Thanks. And then you mentioned the Ford business was, you said, fully penetrated and Ford gain share would grow, so in that expectation do you see it staying in this range, at least in a near-term?

謝謝。然後你提到 Ford 的業務，你說已經「完全滲透」，而 Ford 的市占提升會帶來成長；在這個預期下，你是否看到它至少在短期內會維持在這個區間？

Yes. We would expect minor fluctuations quarter to quarter. Any further growth would really be a reflection on share gains by Ford. It is our belief that we are pretty much shipping across all the Ford models that will ultimately ship the sync system.

是的。我們預期每季之間會有些微波動。任何進一步的成長，主要會反映 Ford 的市占提升。我們相信，我們幾乎已經在所有最終會搭載 Sync 系統的 Ford 車款上出貨。

Great. And then you mentioned your strong diode position. Maybe you can just elaborate on where you see opportunities now that you've been in the seat for a while, to grow the core business. I think most people know the new product story, but if you could just elaborate on where you see opportunities in the existing business?

很好。然後你提到你們在二極體（diode）方面的強勢地位。也許你可以再多談談，現在你上任一段時間後，看到哪些機會可以讓核心業務成長。我想多數人都知道新產品的故事，但你能否談談在既有業務中你看到哪些機會？

Sure. So, I've been pleasantly surprised. I've gone through two rounds of what I call deep dive reviews, full-day reviews with each of our businesses. And pretty much in the diode space we have opportunities to take share in every one of our segments. In fact, in the last rounds, there's even talk of new applications that are emerging that could drive substantial growth for technologies like our [H-make], the heterolithic microwave IT technologies. So I think, personally, that getting back focused on our core business where we are strong already in the market across all the segments, can really yield dividends. Although it is still early yet in my tenure to claim short-term results.

當然。老實說，我感到相當驚喜。我做了兩輪我稱之為深度剖析（deep dive）的檢視，也就是與我們各個事業部進行整天的完整檢討。基本上在二極體領域，我們在每一個區隔都有機會搶占市占。事實上，在最近一輪的檢討中，甚至談到一些正在浮現的新應用，可能會為像我們的 [H-make]、異質整合微波 IT 技術等帶來可觀的成長。因此我個人認為，重新聚焦在我們已在市場上具備優勢的核心業務、涵蓋所有區隔，確實能帶來成果。雖然以我目前任期而言，現在就宣稱短期成果仍為時尚早。

Got you. Thanks, and congrats again.

了解。謝謝，也再次恭喜。

Tore Svanberg with Stifel Nicolaus.

Stifel Nicolaus 的 Tore Svanberg。

Yes, thank you. A few question, and maybe a follow-up to the last question on diodes. John, you said that it tends to be a precursor to broad-based demand improving, can you just elaborate a little bit on that please?

是的，謝謝。有幾個問題，也許延續上一題關於二極體的追問。John，你說它往往是全面性需求改善的前兆，你能否再多說明一下？

Sure. I had made the comment during last quarter's call that we saw a healthy quarter pattern developing, and that really led to not insignificant growth quarter on quarter of this base core business. It is really spread across every one of our segments and across many customers. And those sorts of businesses, like we said, tend to be early indicators of overall demand patterns. That order pattern continues. Our book-to-bill ratio was slightly above one, so I'm confident that we will continue to show firm demand through the second fiscal quarter.

當然。我在上一季的電話會議中提到，我們看到一個健康的季度走勢正在形成，而這確實帶動了這個基礎核心業務在季對季上出現不小的成長。這個成長其實分布在我們每一個區隔、以及許多客戶之間。像這類業務，如我們所說，往往是整體需求走勢的早期指標。這樣的接單型態仍在延續。我們的接單出貨比略高於 1，所以我有信心在第二個會計季度（fiscal second quarter）需求仍會保持穩健。

Very good. And on your Opto business being up this quarter, this current quarter, is that driven by your new products for 100g or is there something else going on there?

很好。你提到你們的光電（Opto）業務在這一季、也就是本季成長，這是由你們 100G 的新產品帶動的，還是還有其他因素？

No, it is all about new products in Opto. We were growing from a negligible revenue run rate to not insignificant. And, in fact, our orders are strong beyond the second fiscal quarter with high-quality OEMs, first year OEMs behind that demand. So, I'm very confident and very comfortable to say that the second quarter outlook for Opto is not going to be a one-time event. I think it is going, in fact, very confident it will show continued momentum into the second half of the year.

不，完全是光電的新產品。我們是從幾乎可以忽略的營收規模成長到相當可觀。事實上，我們在第二個會計季度之後的訂單也很強勁，背後是高品質的 OEM、第一線（tier-one）OEM 所支撐的需求。因此，我非常有信心、也很有把握地說，光電在第二季的展望不會是一次性的事件。我認為它將會——事實上我非常有信心——在下半年持續展現動能。

Very good. You mentioned you're not expecting the wireless point-to-point business to come back anytime soon. What are some of the comments you are getting from your customers there? Is there any hope at all for later on this year? Or is it just going to stay soft -- stay soft?

很好。你提到你們不預期無線點對點（point-to-point）業務短期內會回來。你從那邊的客戶聽到哪些回饋？今年稍晚還有任何希望嗎？還是就會持續疲弱——持續疲弱？

There's no question. The customers for the past year have been predicting recovery in the next quarter. The real question is whether we want to bank on that recovery, so the guidance we provide assumes worst-case scenario, there is no recovery in the second quarter, our fiscal second quarter. I think it is inevitable that the industry will recover, and thought, I would guess that it would be the third quarter. But frankly, I mean I've been waiting for this recovery for the past year. So we will believe it when they backlog builds with deliveries within the next quarter.

毫無疑問，這些客戶在過去一年一直預測「下一季」會復甦。真正的問題是我們是否要把指引建立在那個復甦之上；因此我們提供的指引採用最保守情境，假設在第二季、也就是我們的會計第二季，沒有任何復甦。我認為產業終究會復甦；我猜可能會在第三季。但坦白說，我過去一年一直在等這個復甦。所以我們會等到在手訂單增加、且交付落在下一季之內時，才會相信。

That's very fair. Last question for Conrad. Conrad, you mentioned the 29% tax rate doesn't assume any extension of the R&D tax credit. Is there a chance maybe that 29% can come down as we move throughout the year?

這很合理。最後一題問 Conrad。Conrad，你提到 29% 的稅率並未假設研發（R&D）稅額抵減延長。那麼，隨著今年進行，29% 是否有機會下降？

Oh, what I intended, if it didn't come across that way, the 29% does include the effective, and the effective tax rate does include the credit for the fiscal year. It's simply that in Q1, because our quarter ended December 28, it was prior to the renewal of the tax credit law. And, so that was a 30% rate for that single quarter. So, we do have it at 29% this year, and that is inclusive of the R&D tax credit, sorry.

喔，我原本的意思——如果剛才沒有表達清楚——29% 是包含了該抵減的；也就是說，我們本會計年度的有效稅率（effective tax rate）是包含研發稅額抵減的。只是第一季因為我們的季度在 12 月 28 日結束，當時是在稅額抵減法案續期之前。所以那一季單季是 30% 的稅率。因此，我們今年是 29%，而且這是包含研發稅額抵減的，抱歉。

Very good. Nice quarter, guys. Thank you.

很好。這一季表現不錯，各位。謝謝。

Okay, thank you.

好的，謝謝。

Quinn Bolton with Needham & Company.

Needham & Company 的 Quinn Bolton。

Hey, John, wanted to come back to the growth drivers. It sounds like Networks, you'll see growth in Opto, and then the Aerospace & Defense, and Auto businesses are roughly flat. Can you make any comments about the Multimarkets business? Is that flat or are you seeing positive trends in the Multimarkets segment?

嗨，John，我想回到成長動能。聽起來網路（Networks）會成長，光電（Opto）也會成長，而航太與國防（Aerospace & Defense）以及車用（Auto）業務大致持平。你能否談談多元市場（Multimarkets）業務？它是持平，還是你們在多元市場區隔看到正向趨勢？

So our Multimarket business is comprised entirely of that standard catalog products. And it is in that area that we see slightly above one book-to-bill ratio. So what I would expect is steady progress, steady growth, steady recovery. I don't know, on the order of 3% to 5% year-over-year. But nothing that's really going to move the needle in a big way, but certainly not dropping.

我們的多元市場業務完全由標準型目錄產品（standard catalog products）構成。而就在這個領域，我們看到接單出貨比略高於 1。因此我預期會是穩定進展、穩定成長、穩定復甦。我不確定，大概是年增 3% 到 5% 的量級。但不會是那種能大幅改變整體表現的成長，不過也肯定不會下滑。

Okay. So it sounds like Opto is the real growth driver in that second -- fiscal second quarter?

了解。所以聽起來在第二——會計第二季，光電才是真正的成長驅動力？

Yes, Opto is the real deal. We have the backlog to cover exactly what we are guiding to, and I don't anticipate any scenario where that would evaporate. So I think that's going to be the big mover for the second quarter, like I said, we could see upside elsewhere. We are firm booked at 87%, you can always see push outs, or soft turns, but I think things are trending flat to up.

是的，光電確實是重點。我們有在手訂單可以完全覆蓋我們所給出的指引，我不預期會有任何情境讓它突然消失。所以我認為第二季最大的推動力會是它；如我所說，我們在其他地方也可能看到上行。我們已經有 87% 的訂單是確定的，你總是可能看到延後出貨（push outs）或短期轉弱（soft turns），但我認為整體趨勢是持平到上升。

Great. And, then just a follow-up on Tore's question, is that mostly 100 gig where you are seeing the activity? Or have you guys been able to backfill and seen good demand in both 40 and 100 gig in the Opto business?

很好。然後再追問一下 Tore 的問題：你們看到的活動主要是在 100G 嗎？還是你們也能補上缺口，並在光電業務中同時看到 40G 與 100G 都有不錯的需求？

Its 40 and 100 in terms of the backlog. I would say that, in the past, we've made comments that, in certain parts of the world, the world seems to be moving quicker to 100 and skipping 40, but our backlog specifically is for both.

就積壓訂單而言，是 40 和 100。我會說，過去我們曾評論過，在世界某些地區，市場似乎更快地走向 100 而跳過 40，但就我們的積壓訂單來看，兩者都有。

Great, and can you remind us where were you, this point with backlog coverage entering the December quarter? Is 87% roughly in line with last quarter?

很好，那你能提醒我們，在進入 12 月季度時，你們在積壓訂單覆蓋率方面處於什麼水準？87% 大致與上一季一致嗎？

87% is in line with the past two quarters for the exact same point in time. Our earnings call last quarter was, I think, a week or two weeks --

87% 與過去兩個季度在同一時間點的水準一致。我們上一季的財報電話會議我想是晚了一到兩週——

Two weeks later.

晚了兩週。

It was two weeks later and we are at 92%.

是晚了兩週，而我們當時是 92%。

Correct, right.

沒錯，對。

So 87% is exactly the number that we look to for midpoint guidance.

所以 87% 正是我們用來看中位數指引的數字。

Great. And then, I know you made the comments about the point-to-point radio, that business not, you're not expecting it to come back in the March quarter. But I think you guys have recently extended the SmartSet down to the 8 to 23 GHz range so you've got a broader product line. Can you talk about design wins for the lower frequency SmartSet solutions, and how that might contribute to growth out in the second half of the calendar year or perhaps into calendar '14?

很好。接著，我知道你提到點對點無線電那塊業務，你們不預期它會在 3 月季度回來。但我想你們最近把 SmartSet 延伸到 8 到 23 GHz 的頻段，因此產品線更完整。你能談談較低頻 SmartSet 解決方案的設計導入（design wins），以及它可能如何在下半年或甚至到 2014 年曆年帶動成長嗎？

Yes. Well, we are very pleased with the quality of customers and qualities of design wins. We are broadly engaged. One of my personal agendas, coming into the Company, I have observed that I believe we can drive shared [wallet] at our major customers where expanding the, not just across their portfolio of needs, but I think from a supply chain standpoint, these customers tend to operate very strategically, managing their suppliers. So I think, step one is to get the design wins and the products technically qualified. Step two is to go drive the share. And I think the way I would describe it right now is, we are well positioned, with the portfolio that we need and the technical qualifications. The next step is, like I said, getting the -- securing the commitments we share, and then frankly, at some point, the markets have to begin cooperating.

可以。我們對客戶品質以及設計導入的品質都非常滿意。我們在廣泛地推進合作。我個人加入公司後的一個重點是，我觀察到我們可以在主要客戶那裡提升「錢包份額」[wallet]，不只是擴展到他們需求組合的更多部分，而且我認為從供應鏈角度看，這些客戶往往非常策略性地運作並管理供應商。所以我認為第一步是拿到設計導入並讓產品在技術上通過認證。第二步是去推動份額。我現在的描述是：就我們所需的產品組合與技術認證而言，我們已經處於很好的位置。下一步，如我所說，是取得我們份額的承諾，然後坦白說，在某個時間點，市場也必須開始配合。

Right.

對。

That's the real gate from my perspective.

從我的角度看，那才是真正的關卡。

Great. And then just lastly for Conrad. Any guidance specifically on OpEx into the March quarter, are there step up in FICA or any kind of beginning of the calendar year expenses, or do expect that to run about 25% of sales?

很好。最後一個問題給 Conrad。對於 3 月季度的營業費用（OpEx）有沒有特別的指引？會不會因為 FICA 或任何年初費用而出現上升？還是你預期大約維持在銷售額的 25%？

Closer to 26% because of FICA. Good point, and we've factored that into the estimate.

因為 FICA 會更接近 26%。好問題，我們已把這點納入估算。

Great. Thank you very much.

很好。非常感謝。

Mark Delaney with Goldman Sachs.

高盛的 Mark Delaney。

Great, thanks very much for taking the question, and congratulations on the good quarter.

很好，謝謝讓我提問，也恭喜這一季表現不錯。

Thanks, Mark.

謝謝你，Mark。

I was hoping you could talk a little bit more on the Opto business, and I just want to make sure I understand when you say that the growth for the March quarter is coming from Optoelectronics, do you mean toward the midpoint of the range? So roughly $2.5 million is your base case for how much Opto drives this quarter?

我希望你能再多談一點 Opto 業務。我想確認我理解正確：當你說 3 月季度的成長來自光電（Optoelectronics）時，你的意思是接近區間中位數嗎？也就是說，大約 250 萬美元是你們對本季 Opto 帶動的基準情境？

That is correct.

沒錯。

Okay. Could you elaborate a little bit more on some of the new product introductions and some of the share gain that you were talking about in the Aerospace & Defense program? I think you alluded to a little bit of that in your prepared remarks. And help us understand the timing of when that comes in?

好的。你能再多說一些你提到的航太與國防（Aerospace & Defense）專案中的新產品導入，以及份額提升嗎？我想你在事先準備的發言中有稍微提到。也請幫我們理解它進來的時間點？

Sure, the near-term growth in the Aerospace & Defense market is not in things like defense radar systems, those are obviously long lead time programs. The near-term growth in that segment really comes from Satcom, satellite communications, which has both commercial as well as defense application. And that is specifically the area that has continued to perform for us over the past year, where other segments tended to struggle, and we continue to expect performance through the rest of this year.

當然。航太與國防市場的短期成長不在像防空雷達系統那類產品，那些顯然是前置期很長的專案。該領域的短期成長主要來自 Satcom，也就是衛星通訊，既有商用也有國防應用。這正是過去一年持續為我們帶來表現的領域；在其他細分市場較為吃力時，它仍維持良好，我們也預期在今年剩餘時間會持續表現。

That makes sense. In terms of your inventory, I saw that the deferred revenue was relatively flat quarter on quarter, and I know that's down something close to 40% from peak levels. So when you are talking with your distribution partner, can you give us some sense on where you think inventory levels could go as you move through the year?

了解。就你們的庫存而言，我看到遞延收入（deferred revenue）季對季相對持平，而且我知道它較高峰水準下降了接近 40%。所以當你們與通路夥伴溝通時，能否讓我們了解一下，你們認為隨著今年推進，庫存水位可能會走到哪裡？

I'm not sure we have any guidance about whether -- what direction they are going to move. I can tell you that the word from our distribution partner, and partners, is, the way I describe it, is cautiously optimistic. We've seen positive book-to-bill ratios since -- through our first fiscal quarter. And they are predicting slow, steady monotonic recovery. Again that's where I came with the 3% to 5% growth year on year.

我不確定我們是否能對他們會往哪個方向變動提供任何指引。我可以告訴你的是，我們通路夥伴以及各合作夥伴的說法，用我的描述就是「審慎樂觀」。自我們第一個會計季度以來，我們看到正向的接單出貨比（book-to-bill）。他們預測會是緩慢、穩定、單調式的復甦。這也是我提出年對年 3% 到 5% 成長的原因。

Understood. And, then, just my final question. If one were to strip out the sales to your largest customer, by my math, it looks like your gross margins are actually up quarter on quarter despite what would have been lower revenue excluding foreign. So can you help us understand, is that just a mix thing or is this some of the new products starting to kick in already in the fourth quarter calendar?

明白。那我最後一個問題：如果把對你們最大客戶的銷售剔除，按我的計算，你們的毛利率其實是季對季上升的，儘管在排除外匯後營收會更低。你能幫我們理解一下，這只是產品組合因素，還是一些新產品已經在第四個曆年季度開始發酵？

Well, its new products and our diode products tended to outperform, and those have very nice gross margin structures. They tend to use internal capacity so they have very nice [drop throat], so you are right. We had, looking under the hood, the gross margin mix is actually quite favorable considering the mix issue we had.

嗯，既有新產品的因素，我們的二極體產品也表現得更好，而那些產品的毛利結構非常漂亮。它們通常使用內部產能，所以有很好的[drop throat]，因此你說得對。深入看細項，在我們面臨產品組合問題的情況下，毛利率組合其實相當有利。

Great. Good luck, guys. Thank you.

很好。祝你們好運，謝謝。

(Operator Instructions)

（接線員指示）

Harsh Kumar with Stephens.

Stephens 的 Harsh Kumar。

Hi, guys. First of all, I'm not sure if you guys gave this, but how much is the diode product line as a percentage of revenues?

嗨，各位。首先，我不確定你們是否有提供這個數字，但二極體產品線占營收的比例是多少？

Yes, sorry, Harsh, we don't break out and report revenues by product line. I can tell you our standard product --

是的，抱歉，Harsh，我們不會按產品線拆分並揭露營收。我可以告訴你我們的標準產品——

That's fair.

可以理解。

Our standard products across the board, across all segments, is approximately 0.5 of our total revenues.

我們各部門、各細分市場的標準產品合計，大約占我們總營收的 0.5。

Okay, that's helpful. I'm sorry, go ahead.

好的，這很有幫助。抱歉，你繼續。

No, that was it on my side.

不，我這邊就這樣。

Okay. And then, John, I'm wondering now that your maxed out, sounds like at Ford, what is the potential with respect to M/A-COM's ability to get in with some of the other automakers? I'm wondering if you could [trot] out for us how long it takes, have you, are you in conversations already? Any kind of color would be great.

好的。接著，John，我想問，既然你們在 Ford 那邊看起來已經滿載了，那麼就 M/A-COM 進入其他車廠的能力而言，潛力如何？我想請你跟我們[trot]一下需要多久時間；你們是否已經在對話中？任何補充資訊都很棒。

Sure. I mean we continue to talk to the other major automotive manufacturers, specifically domestic as well as international. There's a lot of forward looking applications, forward looking applications, I shouldn't say Ford, forward looking applications for this kind of technology. But the way to describe it is, this module that we sell is deeply embedded in the architecture of the vehicle, and so it ends up a very strategic decision, and not one that automotive manufacturers make either quickly or on any kind of short-term timeline. So it is the reason why we really don't talk about growth in that business, even if we were to secure new business, it would be out in a timeframe that wouldn't be particularly meaningful.

當然。我們持續與其他主要汽車製造商洽談，包括本土以及國際車廠。這類技術有很多前瞻性的應用，前瞻性的應用——我不該說 Ford——前瞻性的應用很多。但要這樣描述：我們銷售的這個模組深度嵌入車輛的架構之中，因此這會是一個非常策略性的決策，而不是車廠會快速做出、或在任何短期時間表內做出的決定。所以這也是為什麼我們其實不太談這塊業務的成長；即便我們拿到新案子，時間點也會在更遠的未來，未必特別有意義。

Got it, John. And now that you're -- in terms of your management now it seems like you are spending a little bit of time there in the top slot what (technical difficulties) for calendar 2013 as you -- from where you are sitting?

了解，John。那現在你——就你們的管理層而言，現在看起來你在最高職位上花了一些時間，那（技術問題）對於 2013 年曆年，你——從你目前的位置來看是什麼？

I apologize, Harsh, you broke up for a second. Is your question about --

抱歉，Harsh，你剛剛有一秒鐘斷線了。你的問題是關於——

I'm sorry, I'm in a hotel. (technical difficulties) for calendar 2013?

不好意思，我在飯店。（技術問題）是關於2013曆年嗎？

Okay. I understand your question to be what my priorities are for 2013, is that accurate?

好的。我理解你的問題是：我在2013年的優先事項是什麼，這樣理解正確嗎？

Yes.

是的。

Okay. So the way I describe it is like this, the previous leadership did an absolutely fabulous job in terms of these market-driven penetration strategies, with application-specific solutions whether it be for point-to-point, CATV, broadband, Satcom, Milcom, radar and so on. And that is all going to be wonderful growth drivers. You are starting to see that strategy pay off in the second fiscal quarter. In addition to that, not instead of that, what I found is there is a gold mine in a six decade heritage that this Company has in things like the diode business. Technologies like the H-make technology, and the [LGas] technologies that have lots of legs left.

好的。所以我會這樣描述：前任管理團隊在這些由市場驅動的滲透策略方面做得非常出色，提供針對應用的解決方案，不論是點對點、CATV、有線寬頻、衛星通訊（Satcom）、軍用通訊（Milcom）、雷達等等。而這些都將成為很棒的成長驅動因素。你已經開始看到這項策略在第二個會計季度開始奏效。除此之外（而不是取代它），我發現公司六十年的傳承中有一座金礦，例如二極體業務。像是H-make技術，以及[LGas]技術，仍然有很長的發展空間。

We are the market leader, and what I've really focused on as a top priority, is to get structural lines of accountability and focus to maximize those near-term results. I mean these are products that are on the shelf. We don't have to talk about new product cycles. We don't have to talk about long lead time design-ins. This is driving short-term results, and I think we can demonstrate that we can outperform our peers in the short term with that. The second priority I have is, in those application specific areas, the focus on maximizing our shared wallet. I think there's lots of room, and there a lot of cases you move from a product selection to a vendor selection process, and I think we have the opportunity to grow our share just by focusing on relationship building with those major customers. Those, I would say are the two premiere priorities that I have coming in.

我們是市場領導者，而我真正聚焦的首要優先事項，是建立結構化的責任歸屬與專注度，以最大化這些近期成果。我的意思是，這些產品已經在貨架上了。我們不需要談新產品週期，也不需要談長前置期的設計導入。這會帶動短期成果，我認為我們可以證明，靠著這點在短期內能夠優於同業。我的第二個優先事項是：在那些特定應用領域，專注於最大化我們的「錢包份額」（shared wallet）。我認為空間很大，而且在很多情況下，你會從產品選型轉為供應商選擇流程；我認為我們只要專注於與那些主要客戶建立關係，就有機會提升市占。我會說，這就是我上任後的兩大首要優先事項。

Great, John. Thank you so much.

很好，John。非常感謝。

You're welcome.

不客氣。

Jeff Myers with Wachovia Capital.

Wachovia Capital 的 Jeff Myers。

Great, thanks, guys. So most of my questions have been answered but just on the Opto business, so is the strength you are seeing is that across all the products in that pipeline? Or are there specific products that have been stronger than others?

很好，謝謝各位。我的大多數問題都已經得到回答，不過我想再問一下 Opto 業務：你們看到的強勁表現是遍及管線中的所有產品嗎？還是有特定產品比其他產品更強？

Well, I think always, when you get this kind of initial business, it is not a widespread part of the portfolio. But it is not a single product or two. The other way I would describe it is, reasonable coverage of our portfolio driven by, I think, it is about three or four customers over in Asia Pacific. So it is reasonably diverse, but it is not, certainly not in a condition that I would call a mature business with a lot of diversity across the portfolio.

我想通常在這種初期業務出現時，它不會是整個產品組合都普遍受惠。但也不是只有一兩個產品。另一種說法是：我們的產品組合有相當程度的覆蓋，主要由亞太地區大約三到四個客戶所帶動。所以它算是相當多元，但當然還不到我所稱的成熟業務狀態，也就是在整個產品組合上具有高度多樣性。

Got it. When you look at the potential growth for those products, is it just a question of your customers ramping new products that contain your products in them, or is there something else that will, be a gated factor to your growth there?

了解。當你看這些產品的潛在成長時，是否只是客戶把包含你們產品的新產品放量爬坡的問題？還是還有其他會成為你們成長的關卡因素？

Well, I think we hit the market perfectly in terms of the end market health in this particular segment, makes up for the wireless infrastructure to be honest. So I don't think -- this market is indeed cooperating. The first gate is typically getting the product qualification. And then there's a vendor qualification process to go through your quality systems and so on. We've passed all those gates with these major customers, and now, it is indeed, as you said, it is ramping the customer products into volume.

我認為我們在這個細分市場上切入得非常到位，就終端市場健康度而言，坦白說，這一塊主要是無線基礎設施。因此我不認為——這個市場確實在配合。第一道關卡通常是產品認證（qualification）。接著還有供應商認證流程，要審核你的品質系統等等。我們已經通過這些主要客戶的所有關卡，現在確實如你所說，就是把客戶的產品放量爬坡到量產。

Got it. And are these usually sole sourced programs or are they dual sourced?

了解。那這些通常是單一來源（sole sourced）的專案，還是雙來源（dual sourced）？

Yes, so the nature of our business, I would say the dominant majority is sole sourced. It is not a product-to-product direct second source. Even a device which is pin to pin compatible has different electrical characteristics. So when you talk about the concept of multiple sources, it is not on a product basis, it is customers who manage their supply chain with relative shares.

是的，就我們業務的性質而言，我會說絕大多數是單一來源。它不是那種產品對產品、可直接替換的第二來源。即使某個器件在腳位上可完全相容（pin-to-pin compatible），其電氣特性也不同。所以當你談多來源的概念時，它不是以產品為基礎，而是客戶以相對份額來管理其供應鏈。

Got it. Okay, thanks, guys.

了解。好的，謝謝各位。

Elizabeth Howell with Raymond James.

Raymond James 的 Elizabeth Howell。

Hi, great, thanks. I just have a quick one on OpEx. Just what are you thinking in terms of the puts and takes as we go throughout the year? And then did that 26% level you referred to earlier include the negative impact of options or was that GAAP?

嗨，很好，謝謝。我想快速問一個關於營業費用（OpEx）的问题：你們對於全年推進過程中的增減因素（puts and takes）是怎麼想的？另外，你先前提到的26%水準，是否包含認股權的負面影響，還是那是 GAAP？

Okay, this is non-GAAP reporting, and that 26% was this current quarter, and we are aimed at reducing it to our target of 25% over the course. Which would be typically 13% spend is the target for R&D, and 12% for SG&A. And currently it is the other way around, about 12% in R&D and 13% in SG&A, 13% to 14%.

好的，這是非GAAP口徑的報告，而那個26%是本季度的數字；我們的目標是在接下來的期間把它降到25%。通常目標是研發（R&D）支出占比13%，銷售、一般及行政（SG&A）占比12%。而目前剛好相反，研發約12%，SG&A 約13%，大概13%到14%。

Okay. And how do you get to the target levels?

好的。那你們要如何達到目標水準？

The target, a couple of ways by increasing revenue on the top line, that changes the percentage, and holding our costs, as well as becoming more efficient in how we spend our SG&A in particular.

達成目標有幾種方式：透過提升營收（上行的營收端）來改變百分比，同時控制成本，並且提升效率，特別是在SG&A的支出方式上更有效率。

Great, thank you.

很好，謝謝你。

Thank you. And Presenters, it appears there are no additional questioners in the queue. I'd like to turn the program back over to John Croteau for any additional or closing remarks.

謝謝。各位簡報者，目前看起來提問隊列中沒有其他提問者。我想把會議交回給 John Croteau，請他做任何補充或結語。

Very good. I want to thank everyone again for joining us on today's call, and I look forward to reporting our continued progress next quarter. One last comment, Conrad and I will be attending the Stifel Nicolaus conference on February 5, and the Goldman Sachs conference on February 12, both of which are in San Francisco. I would welcome the opportunity to meet with any of our investors that plan to attend. Operator, you may now disconnect the call.

很好。再次感謝各位參加今天的電話會議，我期待在下個季度向各位報告我們持續的進展。最後補充一點：Conrad 和我將於2月5日參加 Stifel Nicolaus 研討會，並於2月12日參加 Goldman Sachs 研討會，兩場都在舊金山舉行。若有任何計畫出席的投資人，我很歡迎有機會與各位會面。接線員，現在可以中斷通話。

Understood, sir. Again, ladies and gentlemen, this does conclude today's conference. Thank you for your participation and have a wonderful day. Attendees, you may disconnect at this time.

了解，先生。再次提醒，各位女士先生，今天的電話會議到此結束。感謝各位的參與，祝各位有美好的一天。與會者現在可以掛線。