MACOM Technology Solutions Holdings, Inc. (MTSI) 2013 Q2 法說會逐字稿

Good afternoon, and welcome to M/A-COM Technology Solutions Holdings' second-quarter of fiscal 2013 financial results conference call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for a question-and-answer session. As a reminder, this call is being recorded today, Tuesday, April 30, 2013.

下午好，歡迎參加 M/A-COM Technology Solutions Holdings 2013 會計年度第二季財務業績電話會議。目前所有與會者均處於僅收聽模式。在今天電話會議結束時，我們將提供問答環節的說明。提醒各位，本次電話會議將於今天（2013 年 4 月 30 日，星期二）進行錄音。

I would now like to turn the call over to Leanne Sievers of Shelton Group, the investor relations agency for M/A-COM Tech. Leanne, please go ahead.

現在我想把電話交給 Shelton Group 的 Leanne Sievers，她是 M/A-COM Tech 的投資人關係代理機構代表。Leanne，請開始。

Good afternoon, and welcome to M/A-COM Technology Solutions Holdings, Inc's, second-quarter of fiscal 2013 earnings conference call. I'm Leanne Sievers, Executive Vice President of Shelton Group, M/A-COM's investor relations firm.

下午好，歡迎參加 M/A-COM Technology Solutions Holdings, Inc. 2013 會計年度第二季財報電話會議。我是 Leanne Sievers，Shelton Group 執行副總裁，也是 M/A-COM 的投資人關係公司代表。

With us today are M/A-COM's President and CEO, John Croteau; and Chief Financial Officer, Conrad Gagnon.

今天與會的有 M/A-COM 總裁暨執行長 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. 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.

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；管理層也可能在回覆各位提問時作出額外的前瞻性陳述。因此，公司主張適用《1995 年私人證券訴訟改革法案》中所載之前瞻性陳述之「安全港」保護。

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 8-K filed today, and its annual report on Form 10-K, filed on November 28, 2012.

實際結果可能與今日討論內容存在重大差異。因此，我們請各位參閱公司向美國證券交易委員會（SEC）提交之文件中，對可能導致差異之風險與不確定性的更詳細討論，包括公司今日提交的 Form 8-K，以及於 2012 年 11 月 28 日提交的 Form 10-K 年度報告。

In addition, any projections as to the company's future performance represents management's estimates as of today, April 30, 2013. M/A-COM assumes no obligation to update these projections in the future, as market conditions may or may not change.

此外，任何對公司未來表現的預測均代表管理層截至今日（2013 年 4 月 30 日）的估計。由於市場狀況可能改變或不改變，M/A-COM 不承擔於未來更新該等預測的任何義務。

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 8-K, 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.

另外，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。這些財務衡量指標以及 GAAP 與非 GAAP 結果的調節表，已載於公司新聞稿及相關的 Form 8-K 當期報告中；該報告已於今日向 SEC 提交，並可於 M/A-COM 網站 www.macomtech.com 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 30 days in the Investor Relations section of M/A-COM's website.

若各位目前無法收聽完整電話會議，錄音將以網路直播回放形式提供 30 天，位於 M/A-COM 網站的「投資人關係」專區。

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

現在，我想把電話交給 M/A-COM 總裁暨執行長 John Croteau。Croteau 先生，請開始。

Thank you, Leanne. Welcome, everyone, and thank you for joining us today. I'd like to begin today's call with an overview of our second-quarter results and then review our end markets and the progress we continue to make towards executing our growth strategy.

謝謝你，Leanne。各位好，感謝大家今天加入我們。我想先概述第二季業績，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。

Once completed, I'll turn the call over to Conrad Gagnon, our CFO, who will review our financial performance in further detail. I'll then conclude today's prepared comments by providing our guidance for the third fiscal quarter before opening the call for questions.

完成後，我會把電話交給我們的財務長 Conrad Gagnon，由他更詳細說明財務表現。之後我將以提供第三會計季的財測作為今天事先準備發言的結尾，然後開放提問。

Revenue for the second quarter was $77.8 million, which was slightly above midpoint of our guidance, and represents a 3.7% sequential increase. Our four end markets performed as expected, with our new 100G optoelectronics products driving the growth in the quarter, as we successfully delivered on our backlog.

第二季營收為 7,780 萬美元，略高於我們財測區間的中點，並較上一季成長 3.7%。我們四個終端市場表現符合預期；本季成長主要由我們新的 100G 光電產品帶動，因為我們成功交付了既有訂單積壓（backlog）。

Non-GAAP gross margin was 44.5%, which was at the midpoint of our guidance. Non-gap net income was $11.7 million, or $0.24 per diluted share; and we finished the quarter with $103.3 million in cash and cash equivalents, no debt, and an untapped credit line of $150 million.

非 GAAP 毛利率為 44.5%，位於我們財測中點。非 GAAP 淨利為 1,170 萬美元，或稀釋後每股 0.24 美元；本季結束時，我們持有現金及約當現金 1.033 億美元，無負債，且有 1.5 億美元尚未動用的授信額度。

Taking a closer look at our revenue by market, 28% of our second-quarter revenue was from networks, 26% from aerospace and defense, 26% from automotive, and 20% from multi-market.

更細看按市場別的營收組成，第二季營收中 28% 來自網路，26% 來自航太與國防，26% 來自汽車，20% 來自多元市場（multi-market）。

Networks, as expected, was up from last quarter, driven largely by sales of our optoelectronics products. Specifically, our new portfolio of modulator drivers and TIAs with 100G applications gained significant momentum as we executed on our orders from last quarter.

如預期，網路市場較上季成長，主要由我們光電產品的銷售帶動。具體而言，隨著我們執行上一季取得的訂單，我們新推出、應用於 100G 的調變器驅動器（modulator drivers）與跨阻放大器（TIA）產品組合動能顯著提升。

We believe that with our broad portfolio of targeted products, M/A-COM is well positioned to benefit from a decade-long build-out of the 100G fiberoptics market.

我們相信，憑藉我們廣泛且聚焦的產品組合，M/A-COM 已具備良好定位，可受惠於 100G 光纖市場長達十年的建置擴張。

Sales into the aerospace and defense market were flat, and we have not seen any impact of sequestration on our business. Likewise, the automotive business performed as we expected, and we continue to believe that any future growth opportunities in this market will be contingent on market share gains by [fort].

航太與國防市場的銷售持平，我們尚未看到預算自動削減（sequestration）對我們業務造成任何影響。同樣地，汽車業務表現符合預期；我們仍認為，該市場未來任何成長機會將取決於 [fort] 的市占率提升。

Our core standard catalog parts continue to demonstrate firm demand. These products are usually sold through distribution. [multibill] and our key distribution partner was positive for the second fiscal quarter and through April, so we remain cautiously optimistic moving forward.

我們核心的標準型目錄產品（standard catalog parts）需求仍然穩健。這些產品通常透過經銷通路銷售。[multibill] 與我們主要的通路合作夥伴在第二會計季及整個四月的表現均為正向，因此我們對未來仍保持審慎樂觀。

Building upon the past three years of improvement in the gross margin and operating income, we have identified further areas for operational refinement. As a result, this quarter we are implementing a minor restructuring that will help improve COGS, as well as redirect future investment from lower-margin to higher-margin opportunities.

在過去三年毛利率與營業利益改善的基礎上，我們已辨識出更多可進一步精進營運的領域。因此，本季我們正在推動一項小幅重整（restructuring），以協助改善銷貨成本（COGS），並將未來投資由較低毛利機會轉向較高毛利機會。

In summary, the overall business environment remains challenging. However, we believe our strong execution matched by our commitment to operational improvements will deliver broad-based growth next quarter and for quarters to come, which is consistent with our strategic plan.

總結而言，整體經營環境仍具挑戰。然而，我們相信，強勁的執行力加上對營運改善的承諾，將在下一季及未來各季帶來更廣泛的成長，這與我們的策略計畫一致。

With that, I'll now turn the call over to Conrad to discuss our financial results for the second quarter of 2013.

接下來，我把電話交給 Conrad，請他說明我們 2013 年第二季的財務結果。

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 discussion of revenue, all income-statement amounts and percentages as well as cash flow from operations will be discussed on a non-GAAP basis. These non-GAAP measures are provided to enhance understanding of our core operating performance, and a reconciliation of each to the most comparable GAAP measure is included in our earnings press release circulated earlier today for your reference.

在我以及 John 的發言中，凡涉及營收的討論，所有損益表項目金額與百分比，以及營運活動現金流量，將以非 GAAP 基礎進行說明。提供這些非 GAAP 指標是為了加深對我們核心營運表現的理解；各項指標與最可比 GAAP 指標之調節表，已包含在我們今日稍早發布的財報新聞稿中，供各位參考。

With that in mind, let me now begin with a review of our financials for the second quarter of fiscal 2013. Revenue for the second quarter was $77.8 million, an increase of 3.7% compared to $75 million in the first quarter, and slightly up compared to the $77.5 million in the second quarter of 2012.

基於上述前提，讓我先回顧 2013 會計年度第二季的財務表現。第二季營收為 7,780 萬美元，較第一季的 7,500 萬美元成長 3.7%，並較 2012 年第二季的 7,750 萬美元略為增加。

The sequential growth in revenue was primarily driven by increased demand for our new 100G optoelectronics products. Gross profit in the second quarter was $34.6 million, or 44.5% of revenue, compared to $33 million, or 44% of revenue, in the prior quarter, representing a 50-basis-point sequential improvement.

營收的季增主要由我們新的 100G 光電產品需求增加所帶動。第二季毛利為 3,460 萬美元，占營收 44.5%；相較之下，上一季毛利為 3,300 萬美元，占營收 44%，毛利率季增 50 個基點。

Gross profit in the prior-year quarter was $37 million, or 47.7%. Our long-term focus continues to be on improving the gross margin through increased sales of higher-margin products, market growth and channel efficiency, as well as further cost reductions.

去年同期毛利為 3,700 萬美元，毛利率為 47.7%。我們的長期重點仍是透過提高高毛利產品銷售、受惠市場成長與通路效率，以及進一步降低成本，來改善毛利率。

In terms of our operating expenses for the second quarter, total operating expenses were $19.7 million compared to $19.2 million in the prior quarter and $19.1 million in the prior-year quarter.

就第二季營業費用而言，營業費用合計為 1,970 萬美元，較上一季的 1,920 萬美元增加，亦高於去年同期的 1,910 萬美元。

Looking specifically at investment in new product, our research and development expense for the second quarter was $9.7 million compared to $9.5 million in the prior quarter and compared to $8.7 million in the second quarter of 2012.

就新產品投資而言，第二季研發費用為 970 萬美元，較上一季的 950 萬美元增加，亦高於 2012 年第二季的 870 萬美元。

R&D as a percentage of revenue represented 12.4% in the second quarter compared to 12.7% in the previous quarter and 11.2% in the prior-year quarter.

研發費用占營收比重在第二季為 12.4%，相較於前一季的 12.7% 以及去年同期的 11.2%。

Selling, general, and administrative expenses were $10.1 million compared to $9.7 million in the prior quarter and $10.5 million in the prior-year quarter. As a percentage of revenue, SG&A represented 12.9% in both the first and second quarter and 13.5% in the prior-year quarter.

銷售、一般及行政費用為 1,010 萬美元，相較於前一季的 970 萬美元以及去年同期的 1,050 萬美元。以營收百分比計，SG&A 在第一季與第二季皆為 12.9%，去年同期為 13.5%。

Income from operations was $14.9 million, or 19.1% of revenue. This compares to $13.8 million, or 18.4% of revenue, in the prior quarter and $17.8 million, or 23% of revenue, in the prior-year quarter. We expect operating margins will expand over time, as we reach our 25% OpEx model and gross margins expand through the growth of higher-margin products and the benefit of operational efficiency.

營業利益為 1,490 萬美元，約占營收的 19.1%。相較之下，前一季為 1,380 萬美元（占營收 18.4%），去年同期為 1,780 萬美元（占營收 23%）。我們預期隨著時間推移，當我們達成 25% 的營業費用（OpEx）模型，且透過高毛利產品成長與營運效率提升帶動毛利率擴張時，營業利益率將會提升。

Turning to income taxes, our effective income tax rate for the second quarter was 21.5% compared to 30% in the first quarter. Our second-quarter results benefitted from a lower tax rate due to the reinstatement of the US Federal R&D Tax Credit in January 2013, enabling us to recognize related tax-credits arising from calendar year 2012. The second-quarter results included the benefit from this one-time tax credit in the amount of $0.02 per share. The effective tax rate for the remainder of the fiscal year is expected to be 29%.

接著談所得稅，第二季的有效所得稅率為 21.5%，相較於第一季的 30%。第二季結果受惠於較低的稅率，原因是 2013 年 1 月美國聯邦研發稅額抵減（US Federal R&D Tax Credit）恢復，使我們得以認列 2012 年曆年所產生的相關稅額抵減。第二季結果包含此一次性稅額抵減的效益，約為每股 0.02 美元。本會計年度剩餘期間的有效稅率預期為 29%。

Our second-quarter net income was $11.7 million, or $0.24 per diluted share, and compares to first-quarter net income of $9.7 million, or $0.20 per diluted share and the prior-year quarter net income of $12.1 million, or $0.28 per diluted share.

第二季淨利為 1,170 萬美元，稀釋後每股盈餘 0.24 美元；相較之下，第一季淨利為 970 萬美元、稀釋後每股盈餘 0.20 美元，去年同期淨利為 1,210 萬美元、稀釋後每股盈餘 0.28 美元。

The share count used to compute EPS was 48 million shares for the second quarter, 47.6 million shares for the prior quarter, and 42.8 million shares in the prior-year period.

用於計算每股盈餘（EPS）的股數為：第二季 4,800 萬股、前一季 4,760 萬股、去年同期 4,280 萬股。

Turning to the balance sheet, as of March 29, 2013, our cash and cash equivalents were $103.3 million, which represents an increase of $10.8 million for the quarter. Cash flow from operations for the quarter was $13 million compared to $14.4 million in the previous quarter and $9.9 million in 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 2013 年 3 月 29 日，我們的現金及約當現金為 1.033 億美元，較本季增加 1,080 萬美元。本季營運活動現金流量為 1,300 萬美元，相較於前一季的 1,440 萬美元以及去年同期的 990 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以提供額外流動性。

Accounts receivable of $49.6 million represents 58 days sales outstanding, which compares favorably to $52.1 million and 63 days sales outstanding at the end of the prior quarter.

應收帳款為 4,960 萬美元，代表應收帳款週轉天數（DSO）為 58 天；相較於前一季期末的 5,210 萬美元與 63 天 DSO，表現更佳。

Inventory was $57.2 million, a $1.4-million decrease from $58.6 million in the prior quarter. Inventory turns were 3 in the second quarter compared to 2.9 in the prior quarter.

存貨為 5,720 萬美元，較前一季的 5,860 萬美元減少 140 萬美元。第二季存貨週轉率為 3 次，相較於前一季的 2.9 次。

Capital expenditures in the quarter were $3.1 million, or 4% of revenue, compared to 2.1% of revenue in the prior quarter. Depreciation on property and equipment for the quarter was $2.6 million.

本季資本支出為 310 萬美元，約占營收 4%，相較於前一季占營收 2.1%。本季不動產、廠房及設備折舊為 260 萬美元。

As John noted, we are implementing a restructure in the June quarter to further improve operational efficiencies and cost of goods sold, as well as to redirect OpEx toward higher-margin products.

如 John 所提，我們將在 6 月季度實施重整，以進一步提升營運效率並降低銷貨成本，同時將營業費用（OpEx）重新導向至毛利較高的產品。

The cash charge for the restructure to be reported in our June quarter is estimated to be between $1.1 million and $1.3 million. The Q3 benefit to gross margin is estimated at 25 basis points and is included in our guidance.

預計在 6 月季度認列的重整現金費用約介於 110 萬至 130 萬美元之間。第三季對毛利率的效益預估為 25 個基點，且已納入我們的財測指引。

I'll now turn the call back over to John, who will provide our business outlook for the third quarter of fiscal 2013.

接下來我把電話交回給 John，他將提供我們 2013 會計年度第三季的業務展望。

Thanks, Conrad.

謝謝你，Conrad。

In the third quarter ending June 28, 2013, we are currently expecting revenues to be in the range of $78 million to $82 million, non-GAAP gross margin between 44% and 46%, and non-gap earnings per diluted share between $0.22 and $0.24 on an expected 48.1 million shares outstanding.

在截至 2013 年 6 月 28 日的第三季，我們目前預期營收將落在 7,800 萬至 8,200 萬美元之間，非 GAAP 毛利率介於 44% 至 46%，非 GAAP 稀釋後每股盈餘介於 0.22 至 0.24 美元，假設期末流通在外股數為 4,810 萬股。

As of today, we have already shipped or are presently firm-booked for 86% of the midpoint of our revenue range.

截至今日，我們已出貨或目前已確定下單（firm-booked）的金額，已達我們營收區間中點的 86%。

Operator, you may now open the call for questions.

接線員，現在可以開放提問。

Yes, sir.

好的，先生。

(Operator instructions)

（接線員指示）

It looks like our first question comes from the line of Mark Delaney with Goldman Sachs. Please go ahead. Your line is now open.

看起來我們的第一個問題來自高盛（Goldman Sachs）的 Mark Delaney。請開始提問，您的線路已開通。

Yes. Thanks very much for taking the question. John, I was hoping you could elaborate a little bit more on your comments about the order trajectory. I understand the book-to-bill from your distributors was positive and remained so in April. Could you talk a little bit more about the bookings transfer, the entire business, and reconcile that with the commentary on how firm-booked you are relative to your June quarter guidance?

是的。非常感謝讓我提問。John，我希望你能再多談一點你對訂單走勢的評論。我理解你們經銷商的訂單出貨比（book-to-bill）為正，且在 4 月仍維持為正。你能否再多談談訂單轉換（bookings transfer）、整體業務情況，並將其與你們對於相較 6 月季度財測指引、目前已確定下單程度的評論做個對照說明？

Sure, Mark. Our book-to-bill, actually, across all the business was greater than 1. We tend to use the distribution number as more of an indicator of the broad-based demands, rather than just the [murder pole] customers.

當然可以，Mark。其實我們整體業務的訂單出貨比（book-to-bill）都大於 1。我們傾向把通路端的數字視為更能反映廣泛需求的指標，而不只是那些「[murder pole]」客戶。

And consistent with that, we consider the next quarter to be a growth quarter, modest growth. We're cautiously optimistic; and with a little over 86% firm-booked, we're very much on track for hitting that midpoint of 80.

也因此，我們認為下一季會是成長的一季，屬於溫和成長。我們審慎樂觀；而且目前已確定下單超過 86%，我們非常有把握達成 8,000 萬美元中點目標。

Thank you for that. For my followup -- I understand you're taking some incremental steps that are going to help your gross margin in the third quarter. And there were some prior things that I think were underway, such as targeting better yields and some new product introductions. So if you put the new actions together with some of the prior initiatives that you had on the gross margins, can you just help us understand what sort of drop-through we should expect going forward?

謝謝你的說明。我的追問是——我理解你們正在採取一些額外措施，將在第三季幫助毛利率。此外，之前也有一些我認為正在進行中的事項，例如提升良率以及推出新產品。若把這些新措施與先前你們在毛利率方面的既有計畫合併來看，你能否協助我們理解，未來我們應該預期怎樣的增量貢獻（drop-through）？

Yes. Our model still remains intact of incremental -- drop-through on incremental revenue for a gross profit line of 60%. This minor restructuring we referred to in operational efficiencies are really just continuing activity that we've had over the past three years. I think in previous calls, we talked about -- you know, as much as 200 basis points we thought we could improve operating efficiencies over the coming year, year and a half; and this is part of that exercise.

可以。我們的模型仍維持不變：增量營收對毛利（gross profit line）的增量貢獻率為 60%。我們提到的這次小幅重整、著重於營運效率，其實只是延續過去三年我們一直在做的工作。我想在之前的電話會議中我們提過——你知道，我們認為在接下來一年到一年半內，營運效率可改善多達 200 個基點；而這就是其中一部分。

Thank you. Good luck.

謝謝你。祝順利。

Thanks.

謝謝。

Thank you, sir. Our next question comes from the line of Harlan Sur with JP Morgan. Please go ahead. Your line is now open.

謝謝您，先生。下一個問題來自摩根大通（JP Morgan）的 Harlan Sur。請開始提問，您的線路已開通。

Hey, guys. This is [Saka Chelize] for Harlan Sur. [Three things you could show the] quarter, within the gross guidance, I was wondering if you could talk about the particular segments, perhaps what segments are improving and what you expect to be fairly flat across the board for the quarter?

嗨，各位。我是代替 Harlan Sur 的 [Saka Chelize]。[Three things you could show the] 這一季，在毛利率指引範圍內，我想請教你們能否談談各個特定區隔；例如哪些區隔正在改善，以及你們預期本季哪些區隔大致會持平？

I'm sorry. Is your question about forward-looking, or for the next quarter, or --?

不好意思。你的問題是關於前瞻性的，也就是下一季，還是——？

For the next quarter, yes.

是的，關於下一季。

Well, the growth that we're predicting is pretty much across all end markets and all product categories, with the exception of automotive. Our Ford business continues to be flat. We actually were flat within 1 percentage point, so there's good planning for you.

我們預測的成長幾乎是涵蓋所有終端市場與所有產品類別，汽車市場除外。我們與 Ford 的業務仍然持平。實際上我們的持平幅度在 1 個百分點以內，所以這對你來說是很好的規劃依據。

In any case, on a forward-looking basis, nothing really stands out, in terms of a primary growth driver. It's really broad-based, like I said, across the aerospace/defense networks, the various network sub-segments, as multi-market; and it's between standard products as well as the application-specific products, so it's a little bit encouraging that we're not being driven by one particular segment.

總之，以前瞻角度來看，沒有哪一項特別突出、可視為主要成長驅動因素。就像我說的，成長是廣泛分布的，涵蓋航太/國防網路、各種網路子區隔、以及多元市場；同時也涵蓋標準產品與應用特定產品。這點讓人稍感鼓舞，因為我們並非由單一特定區隔所驅動。

Okay, thank you. And then, just wondering about the second half of 2013. I was wondering if the team can just talk qualitatively about the growth in your four segments for the second half of this year.

好的，謝謝。接著，我想請教一下 2013 年下半年。我想知道團隊是否可以就今年下半年你們四個事業部門的成長，做一些定性的說明。

We don't have too many leading indicators on a forward-looking demand. We hear the rumors that everybody hears about second-half calendar 2013 recovery in markets like the wireless infrastructure segment. I would say everything we see is not inconsistent with that, but it's too early to really see the orders build in support of that.

我們沒有太多可用來前瞻需求的領先指標。我們也聽到跟大家一樣的傳聞，說在無線基礎設施等市場區隔，2013 年曆年下半年會復甦。我會說，我們看到的一切並不與此相矛盾，但現在還太早，尚未真正看到訂單開始累積以支撐這種說法。

Okay. Thank you.

好的。謝謝。

Thank you, sir. Our next question comes from the line of Harsh Kumar with Stephens. Please go ahead. Your line is open.

謝謝您。下一個問題來自 Stephens 的 Harsh Kumar。請繼續，您的線路已開通。

A couple of questions, John, something similar to the line of what was just asked. I guess, let me ask the same question another way. What are you most excited about as you look to the back half? I've got to think networks are somewhere in there, but what else are you excited about for the rest of year?

John，我有幾個問題，跟剛才問的方向有點類似。我想我換個方式問同一個問題。當你展望下半年時，你最感到興奮的是什麼？我想網路應該是其中之一，但今年剩下的時間你還對哪些方面感到興奮？

I would say the networks and the multi-market stuff are two areas that really stand out as the real growth drivers. Networks -- you know, we've talked a lot about the success we've had in the 100G optoelectronics segment. We've had our first customers ramp into production, and that's really kind of breaking the ice for more customers turning on. So I think not just through the second half of this year but through the coming years, arguably for the next decade, I think that's going to be a wonderful growth driver.

我會說，網路以及多市場（multi-market）相關業務，是兩個非常突出的真正成長驅動力。網路方面——你知道，我們談過很多我們在 100G 光電（optoelectronics）領域的成功。我們已經有第一批客戶開始量產爬坡，這確實有點像是打破僵局，讓更多客戶開始啟動。所以我認為不只是今年下半年，甚至在未來幾年——可以說在接下來十年——這都會是一個很棒的成長驅動力。

At some point, the point-to-point market will recover. We have no indication that that is in the coming quarter, but again, we hear the same rumors that everybody does that the second half of the calendar year will lift.

在某個時間點，點對點（point-to-point）市場會復甦。我們沒有任何跡象顯示會在接下來這一季發生，但同樣地，我們也聽到跟大家一樣的傳聞，說曆年下半年會回升。

And then the other thing that's very much encouraging for me is our standard catalog products -- you know, the demand through not just distribution but across all our end markets, both OEM as well as distribution -- that is steadily growing and picking up pace. And like I said, that's when I really get encouraged. So it's not any particular one segment, as it was for the past quarter; but broad-based lift is -- it would be nice if some of these headwinds turn into tailwinds for once.

另外一件讓我非常受到鼓舞的是我們的標準型目錄產品（standard catalog products）——你知道，需求不僅透過通路（distribution），而且在我們所有終端市場中，無論是 OEM 還是通路，都在穩定成長並加速。就像我說的，這會讓我真的感到振奮。所以不再是像上一季那樣由某一個特定區隔帶動；而是全面性的回升——如果這些逆風能有一次變成順風，那就太好了。

Definitely. And kind of getting a little deeper into your answer, John -- outside of networks, are there any tremendously bright spots -- I apologize, outside of opto and the network side, clearly you're taking share there with some new lines. But outside of opto, is there anything else in network that excites you?

確實。再深入一點追問你的回答，John——除了網路之外，有沒有任何特別亮眼的地方——抱歉，我是說除了光電與網路那一塊，顯然你們靠一些新產品線在那裡搶市占。但在光電之外，在網路領域還有什麼讓你感到興奮的嗎？

There's no question. I think we've made some major progress behind the scenes, not yet realized in revenue, but breakthroughs at one of our top point-to-point customers, in terms of driving share of wallet at one of the major point-to-point customers. But again, that's going to take a few quarters to be realized.

毫無疑問有。我認為我們在幕後取得了一些重大進展，雖然尚未反映在營收上，但在我們某個頂尖點對點客戶那裡取得突破，就提升該主要點對點客戶的錢包份額（share of wallet）而言。不過同樣地，這需要幾個季度才會反映出來。

CATV, we're well positioned, but the DOCSIS 3.1 deployment is -- you know, while key decisions will be made this year, the revenue won't be realized until the latter part of 2014, it looks like.

有線電視（CATV）方面，我們的布局很好，但 DOCSIS 3.1 的部署——你知道，雖然今年會做出關鍵決策，但看起來營收要到 2014 年後段才會實現。

So that's -- while it's a bright spot, it's not a short-term bright spot. And then there's a lot of absolutely wonderful things happening in our aerospace and defense business, which we hope in the coming quarters we can talk about more publically, and that's revenue that will be realized a further out in time. So the answer is really time-dimensional.

所以——雖然那是一個亮點，但不是短期的亮點。另外，我們航太與國防業務也有很多非常棒的事情正在發生，我們希望在接下來幾季能更公開地談一些內容，而那部分營收會在更久之後才會實現。所以答案其實跟時間維度有關。

And I want to ask you an interesting question. We cover a couple of other companies in the defense space, John. They have all said the same thing. They haven't seen an impact from the sequestration. I was trying to pick your brains and see why that may be. Is it simply too early? Or is it simply that the electronics part is immune from that? And then I'll get back in line.

我想問你一個有趣的問題。John，我們也追蹤幾家國防領域的公司。他們都說同一件事：他們沒有看到「自動減支」（sequestration）的影響。我想請教你，為什麼可能會這樣？是因為現在還太早？還是因為電子零組件這一塊對此具有免疫力？我問完就回到隊列。

I would -- I mean, this is pure speculation, so -- you know, my sense is we simply are not that exposed. M/A-COM once upon a time would have been heavily exposed to the defense sector. We're not so much today. It's 10% of our total revenue, and even at 10%, it's spread so wide. What I would worry about is -- for instance, if we had big radar programs. Our radar business today is largely air traffic control and weather radar. If it was defense radar in the presence tense with sequestration, with big, [lumpy] business, you can have a big material impact.

我會——我的意思是，這純屬推測，所以——你知道，我的感覺是我們其實沒有那麼曝險。M/A-COM 在很久以前可能會對國防部門高度曝險，但今天不是。我們國防相關約占總營收的 10%，而且即便是 10%，也分散得很廣。我會擔心的是——例如，如果我們有大型雷達專案。我們目前的雷達業務主要是空中交通管制與氣象雷達。如果是在自動減支的情況下做國防雷達，而且是那種大型、[不均勻]（lumpy）的業務，就可能造成很大的實質影響。

We just -- that's not the nature of our defense business today. And we've been keeping a very close eye on the products that we sell into the defense applications. And as I said, there's absolutely zero indication of any impact so far.

但我們——這不是我們今天國防業務的性質。我們也一直非常密切地關注我們銷往國防應用的產品。就像我說的，到目前為止完全沒有任何影響的跡象。

Okay. Good to hear. Best of luck, guys. I'll get back in the line.

好的。很高興聽到。祝你們好運。我回到隊列。

Great. Thanks.

很好。謝謝。

Thank you, sir. Our next question comes from Tore Svanberg with Stifel. Please go ahead. Your line is now open.

謝謝您。下一個問題來自 Stifel 的 Tore Svanberg。請繼續，您的線路已開通。

Yes, thank you. A few questions. Just to clarify on the restructuring that you're implementing -- you get an immediate 25-basis-point improvement to gross margin this quarter; but is there a specific number that we can also add for subsequent quarters?

是的，謝謝。我有幾個問題。先釐清一下你們正在推動的重整（restructuring）——你們本季毛利率會立即改善 25 個基點；那後續幾季是否也有一個我們可以加上的具體數字？

Sure. We project that it's about 300,000 per quarter in savings and cost of goods sold.

當然。我們預估在銷貨成本（cost of goods sold）方面，每季大約可節省 30 萬美元。

Excellent. Very good. And on the question on aerospace and defense -- I guess another way of asking the question there is, could you actually potentially see some benefits from sequestration? I'm thinking more outsourcing from your customers. Have you had more dialog with them, or is that still too early?

太好了，非常好。再談航太與國防的問題——我想換個方式問：你們是否可能反而從自動減支中看到一些好處？我想到的是客戶可能會增加外包。你們是否跟他們有更多對話，還是現在仍然太早？

I think it's just too early to say. I certainly wouldn't be declaring upside on the back of sequestration at this point.

我認為現在說還太早。我當然不會在這個時間點就因為自動減支而宣稱會有上行空間（upside）。

Very good. Looking at your optoelectronics business, obviously it's now ramping with one customer. As we look at the second half and into the next fiscal year -- I mean, what inning are we in, here? I think -- I'm just trying to understand the magnitude of this ramp that we're going to see for the next six quarters.

很好。看你們的光電業務，顯然現在正隨著一位客戶而開始爬坡。當我們看下半年以及下一個會計年度——我是說，我們現在處於哪一局（inning）？我只是想了解，接下來六個季度我們將看到的這個爬坡幅度會有多大。

I don't think we're just in the first inning. I think we're in the first at bat. I mean, this --.

我不認為我們只是第一局。我認為我們才剛站上第一個打席（first at bat）。我的意思是，這——。

Okay.

好的。

I had a chance to get out and meet with some of our elite customers in the space over in Asia this quarter; and they were talking about -- this is a decade-long build-out. This is not a flash in the pan with the 100G build-out. And so this is going to be like 10G. It's going to be literally measured in a decade or more.

這一季我有機會到亞洲，與我們在該領域的一些頂尖客戶會面；他們談到——這是一個長達十年的建置（build-out）。100G 的建置不是曇花一現。所以這會像 10G 一樣，時間尺度會以十年或更久來衡量。

So I think -- you know, the way to think about our progress this quarter is -- the way these things work is, in the infrastructure space, field reliability and product qualification is a very, very big deal. As you can imagine, no OEM wants to put product in the field that is ultimately determined to be unreliable. So they go through very, very rigorous qualification.

所以我認為——你知道，理解我們本季進展的方式是——在基礎設施領域，現場可靠度（field reliability）與產品認證（product qualification）是非常、非常重要的事。你可以想像，沒有任何 OEM 會想把產品放到現場後，最後被判定不可靠。因此他們會進行非常嚴格的認證流程。

And what happened this quarter was, we got through that qualification with one of the most respected market-share leaders in that space, and that is a trigger, we believe, for the rest of our customers to be stepping in with both feet and ramping over the coming quarters. And like I said, this is going to turn into a very long life cycle of what we think will be a very nice business for us.

而本季發生的事情是，我們通過了該領域中最受尊敬、且市占領先者之一的認證；我們相信這會成為一個觸發點，讓其餘客戶在接下來幾季全力投入並開始爬坡。就像我說的，這將會轉變成一個非常長的生命週期，而我們認為這會成為對我們非常不錯的一門生意。

Very good. Just last question, on point-to-point and that business potentially recovering -- like you said, it seems to be a lot of chatter that maybe the second half could see a recovery there. But when you talk to your customers, are they talking about any specific regional deployment? I'm thinking 4G in China or 3G in India. Is there any of those discussions going on?

非常好。最後一個問題，關於點對點（point-to-point）以及該業務可能回升——如你所說，市場上似乎有很多討論，認為下半年可能會看到復甦。但當你和客戶交流時，他們有談到任何特定的區域性部署嗎？我想到的是中國的 4G 或印度的 3G。是否有在進行這類討論？

Yes, I mean, there's constant discussions going on. My personal experience in this space in this life and my previous life is -- you know, our customers, even the market-share leaders, frankly, have very little visibility, themselves. The lead times they operate on are incredibly short, and when the triggers are pulled, the delivery is very rapid.

是的，我的意思是，相關討論一直都在進行。以我這一生以及前一份工作在這個領域的個人經驗來看——你知道，我們的客戶，即便是市占率領導者，坦白說，他們自己也幾乎沒有太多能見度。他們運作的交期非常短，而一旦扣下扳機（做出決策），交付就會非常迅速。

So I made the comment last quarter, and I stand by it, I'm out of the business of declaring recovery in this segment until, in fact, we see it.

所以我上季做過那個評論，而且我仍然堅持：在我們實際看到之前，我不會再去宣告這個細分市場已經復甦。

That's very fair and helpful. Thank you so much.

這非常公允也很有幫助。非常感謝。

You're welcome.

不客氣。

Thank you. Sir. (Operator instructions).

謝謝。先生。（接線員指示）。

Our next question comes from Steve Smigie with Raymond James. Please go ahead. Your line is now open.

我們的下一個問題來自 Raymond James 的 Steve Smigie。請開始，您的線路已開通。

Thanks a lot for letting me ask my questions here. Just with regard to the point-to-point discussion we've been having here -- I think that's some of your highest-margin business. So if you do get that [snap-back], it seems like it could significantly change the trajectory of your margins. If you saw, say, a pick-up in the back half, could you continue to invest in some of the higher-end 70-gigahertz solutions in addition to, I think, some of the more intermediate side that you've been talking about? Because it seems like that could also add pretty meaningful margin in addition to what you already have out there.

非常感謝讓我在這裡提問。關於我們一直在討論的點對點業務——我認為那是你們毛利率最高的業務之一。所以如果真的出現那種「快速反彈」（[snap-back]），看起來可能會顯著改變你們毛利率的走勢。如果你們在下半年看到回升，你們是否能在持續投入你們一直在談的較中階方案之外，也繼續投資一些更高階的 70GHz 解決方案？因為看起來那也能在你們既有基礎上再增加相當可觀的毛利。

Sure. I mean, we have launched -- I think this quarter we announced our first E-band power-amplifier product. So, in a very strong leadership position in that space. We absolutely invest and intend to maintain the technology high ground in that space.

當然。我的意思是，我們已經推出——我想本季我們宣布了第一款 E-band 功率放大器產品。因此在那個領域我們處於非常強勢的領導地位。我們絕對會投資，並且打算維持在該領域的技術制高點。

The issue we deal with, though, is, from an overall [Sam] standpoint is, it's a modest market, modest opportunity space. And the way I look at the networks market is, I invest in customers, not necessarily just products. So we have customers where -- you know, when they commit to us with a large share of wallet, we commit to them, not just cherry picking the high end but being a strategic supplier and a mainstream supplier, in fact, ultimately the number-one supplier in the space.

不過我們面臨的問題是，從整體 [Sam] 的角度來看，這是一個規模不大的市場、機會空間也相對有限。我看待網路市場的方式是：我投資的是客戶，而不一定只是產品。所以我們有一些客戶——你知道，當他們承諾把很大一部分採購份額（share of wallet）交給我們時，我們也會對他們做出承諾，不只是挑高階產品來做，而是成為策略性供應商與主流供應商，最終在該領域成為第一大供應商。

We will maintain the technology high ground, but we'll also end up with a blended business that's lucrative, both from a top-line as well as a gross-margin standpoint.

我們會維持技術制高點，但同時也會形成一個混合型的業務組合，無論在營收（top-line）或毛利（gross margin）角度都很有利可圖。

Great. With regard to, let's say, China, it seems like there's a lot of opportunity there for you guys. And we have a new Chinese administration in place that seems to have been holding up some of the deployments as we waited for a new administration to come in over there. Have you started to hear any rumblings that some of those projects you've been looking at are maybe starting to accelerate a little bit, in terms of radar?

很好。關於中國，看起來那裡對你們而言有很多機會。而且中國有一個新的政府班子上任，似乎在等待新政府到位期間，一些部署被延後了。你們是否開始聽到一些風聲，表示你們一直在關注的某些專案可能正在稍微加速，尤其是雷達方面？

I would say my -- oh, on the radar side? Or are you talking about --?

我會說我——哦，是在雷達那一塊嗎？還是你在說——？

Well, any projects; but I thought -- you're doing some work, for example, at the radar at airports. But it could be other applications, as well.

嗯，任何專案都可以；但我想——例如你們在機場雷達方面做了一些工作。但也可能是其他應用。

There's no question. We see some very nice orders coming in for this quarter and future quarters. Things seemed pretty cold last year and into the early part of this year; and they certainly have a feel of warming up a bit.

毫無疑問。我們看到本季以及未來幾季都有一些非常不錯的訂單進來。去年以及今年年初的情況看起來相當冷清；而現在確實有一點回溫的感覺。

I did get a chance to meet with our top Chinese customers as part of the travel over to Asia, and there's no question that the general environment is improving.

我也趁著到亞洲出差的機會，與我們在中國的主要客戶會面，毫無疑問，整體環境正在改善。

Okay. And then just some of the standard catalog products -- I know you'd gotten very strong reception for those products for multiple decades from your customers. Can you take those relationships and add additional products to that? Or is that not really how you're going to try to leverage your portfolio there?

好的。接著談一些標準型目錄產品——我知道你們的客戶對這些產品在過去幾十年一直反應非常好。你們能否利用這些關係再導入更多產品？還是說你們不會用這種方式來槓桿你們在那裡的產品組合？

No, you hit the nail on the head. We have -- the beauty of M/A-COM here is that we have decades of customer relationships and a very broad portfolio and customer reach that I think, frankly, other companies in the industry can only dream of. And to be able to build out our portfolio of products that were kind of overlooked over a decade during the [Tyco] years, as we build those out -- you know, it's low-risk business.

不，你說得完全正確。M/A-COM 的優勢在於：我們擁有數十年的客戶關係、非常廣泛的產品組合，以及我認為坦白說其他同業只能夢想的客戶觸及面。而且在我們擴充產品組合、把在 [Tyco] 時期十多年來某些被忽略的產品補齊的過程中——你知道，這是低風險的業務。

We get customer access. It's technology that's in our wheelhouse. I mean, to be frank, you just have to deliver the products that customers want. So I think -- one of brightest spots -- to take nothing away from some of these vertical markets -- one of the brightest spots for M/A-COM in the future is building out that standard product business.

我們能接觸到客戶。技術也在我們的專長範圍內。坦白說，你只要交付客戶想要的產品就行。所以我認為——不否定這些垂直市場——M/A-COM 未來最亮眼的成長點之一，就是把那個標準產品業務做大。

Great. And just sort of a similar-type question -- it seems like you're getting some nice traction with the 100G -- I believe that was the trans-impedance amplifier. Are there adjacent product categories you think you can address (inaudible) again, another pretty high-margin category. You seem to be getting some nice traction there.

很好。再問一個類似的問題——看起來你們在 100G 上取得了不錯的進展——我相信那是跨阻放大器（trans-impedance amplifier）。你們是否認為還有相鄰的產品類別可以切入（聽不清），同樣也是另一個毛利很高的類別。你們在那裡看起來也有不錯的動能。

Actually, our biggest strength is on the modulator-driver side. We also have TIAs, and we do well with those, but where we're really driving is on the modulator-driver side.

其實，我們最大的強項是在調變器驅動器（modulator-driver）那一側。我們也有 TIA，而且表現不錯，但我們真正發力的是調變器驅動器那一側。

And indeed, we're looking at broadening our product footprint as much as possible, now that we've established ourselves in this segment, where, frankly, M/A-COM had previously had no presence. So that -- you know, when we talk about freeing up investment for higher-margin opportunities, that's part of the equation.

而且確實，我們正在盡可能擴大我們的產品版圖，因為我們已經在這個細分市場站穩腳步；坦白說，M/A-COM 以前在這個領域是沒有任何存在感的。所以——你知道，當我們談到釋放投資、投入到更高毛利的機會時，這就是其中一部分。

Great. Thank you.

很好。謝謝。

You're welcome.

不客氣。

Thank you, sir. And at this time, I'm showing no additional questioners in the queue. I'd like to turn the floor back over to John Croteau for any additional or closing remarks.

謝謝您，先生。目前我看到隊列中沒有其他提問者。我想把時間交回給 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.

很好。我想再次感謝各位參加今天的電話會議，我也期待在下個季度向各位報告我們持續的進展。

One last comment. Conrad and I will be attending several upcoming events, including the Jefferies Conference on May 7 in New York, the JP Morgan Conference in Boston on May 14, and the Barclays conference May 22 in New York. If you plan to attend any of these events, we'd love to welcome the opportunity to meet with you.

最後補充一點。Conrad 和我將出席接下來的幾個活動，包括 5 月 7 日在紐約的 Jefferies 會議、5 月 14 日在波士頓的 JP Morgan 會議，以及 5 月 22 日在紐約的 Barclays 會議。如果你計畫參加其中任何一個活動，我們非常希望有機會與你會面。

Operator, you may now disconnect the call.

接線員，您現在可以中斷通話。

Thank you, sir. Thank you, ladies and gentlemen, for participating. This does conclude today's conference. You may now disconnect and have a wonderful day.

謝謝您，先生。也謝謝各位女士、先生的參與。今天的會議到此結束。您現在可以中斷連線，祝您有美好的一天。