MACOM Technology Solutions Holdings, Inc. (MTSI) 2013 Q3 法說會逐字稿

Good day, ladies and gentlemen, and thank you for your patience. You joined Mindspeed Technology's Fiscal Third 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 be given at that time.

各位女士、先生，大家好，感謝各位耐心等候。您正在參加 Mindspeed Technology 2013 會計年度第三季財務業績電話會議。此時，所有與會者皆處於僅收聽模式。稍後我們將進行問答環節，屆時會提供相關指示。

(Operator Instructions)

（接線員指示）

As a reminder, this conference may be recorded. I would now like to turn the call over to your host, Vice President of Corporate Development and Investor Relations, Mr. Keven Trosian. Sir, you may begin.

提醒各位，本次會議可能會被錄音。現在我想把電話交給本次會議主持人——企業發展與投資人關係副總裁 Keven Trosian 先生。先生，您可以開始了。

Thank you, and good afternoon to all of you who have joined us for today's conference call to discuss Mindspeed's Fiscal Third Quarter of 2013 Financial Results. Our press release issued this afternoon detailing these results may be accessed in the investor section of our website at www.mindspeed.com.

謝謝，各位下午好，感謝各位參加今天的電話會議，一同討論 Mindspeed 2013 會計年度第三季財務業績。我們今天下午發布、詳述本次業績的新聞稿，可於我們網站 www.mindspeed.com 的投資人專區查閱。

Today, our CEO, Raouf Halim, will describe some key milestones for the business, and the strategic focus of the Company going forward. Following Mr. Halim, Stephen Ananias, our CFO, will review fiscal third quarter 2013 financial results, and provide financial guidance for our fiscal fourth quarter of 2013.

今天，我們的執行長 Raouf Halim 將說明公司業務的一些關鍵里程碑，以及公司未來的策略重點。Halim 先生之後，我們的財務長 Stephen Ananias 將回顧 2013 會計年度第三季財務結果，並提供 2013 會計年度第四季的財務指引。

Before we begin, I want to remind you that our comments today will include forward-looking statements within the meaning of Federal Securities laws.

在開始之前，我想提醒各位，我們今天的發言將包含符合聯邦證券法意義下的前瞻性陳述。

Forward-looking statements include, among others, statements regarding our expectations, goals or intentions, including, but not limited to, our current assessment of the demand environment and trends in our target markets, including the anticipated environment and trends in fiscal 2013, our assessment of growth opportunities in the specific product markets in which we compete, and our current expectations for fiscal fourth quarter net product revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income and expense, and the provision for income tax and weighted average diluted shares outstanding.

前瞻性陳述包括但不限於：關於我們的預期、目標或意圖之陳述，其中包括但不限於我們目前對需求環境及目標市場趨勢的評估（包括 2013 會計年度預期的環境與趨勢）、我們對所競爭之特定產品市場成長機會的評估，以及我們目前對 2013 會計年度第四季產品淨營收、非 GAAP 毛利率、非 GAAP 營業費用、非 GAAP 其他收益與費用、所得稅提列以及加權平均稀釋流通股數的預期。

These forward-looking statements are based on management's current expectations, estimates, forecasts and projections, and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements.

這些前瞻性陳述係基於管理層目前的預期、估計、預測與推估，並受各項風險與不確定性影響，可能導致實際結果與事件與前瞻性陳述所述內容出現重大差異。

Our businesses is, and any financial projections provided today, are subject to numerous risks and uncertainties, including fluctuations in our operating results, and the potential for future operating losses, our ability to generate revenue from design wins, loss of, or diminished demand from one or more key customers or distributors, our ability to successfully develop and introduce new products, pricing pressures, whether we continue to sustain losses and consume cash in our operations, customer and employee uncertainty arising from our previously announced engagement of Morgan Stanley & Company, LLC to review our strategic alternatives, and the potential for intellectual property and other litigation.

我們的業務以及今天提供的任何財務預測，均受多項風險與不確定性影響，包括：我們營運結果的波動以及未來可能發生的營運虧損；我們自設計導入（design wins）產生營收的能力；一個或多個主要客戶或經銷商的流失或需求下降；我們成功開發並推出新產品的能力；價格壓力；我們是否持續虧損並在營運中消耗現金；因我們先前宣布委任 Morgan Stanley & Company, LLC 檢視策略替代方案而導致的客戶與員工不確定性；以及智慧財產權與其他訴訟的可能性。

Additional risks and uncertainties that could cause our actual results to differ from those set forth in any forward-looking statements are discussed in more detail under the caption Risk Factors in our annual report on Form 10-K for the fiscal year ended September 28, 2012, and our quarterly report on Form 10-Q for the fiscal second quarter of 2013. They will also be included in our soon-to-be-filed quarterly report on Form 10-Q for the fiscal third quarter of 2013 and in our future filings with the SEC.

可能導致我們實際結果與任何前瞻性陳述所述內容不同的其他風險與不確定性，已在我們截至 2012 年 9 月 28 日止會計年度的 Form 10-K 年報，以及 2013 會計年度第二季的 Form 10-Q 季報中「風險因素」章節更詳細說明。這些內容也將納入我們即將提交的 2013 會計年度第三季 Form 10-Q 季報，以及我們未來向 SEC 提交的文件中。

Forward-looking statements made during this call are made only as of the date hereof and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

本次電話會議中的前瞻性陳述僅截至本日為止有效，公司不承擔更新或修訂前瞻性陳述之義務，無論係因新資訊、未來事件或其他原因。

During our call today, we will be making reference to non-GAAP financial measures, which exclude good will and asset impairment charges as well as stock-based compensation expense and related payroll costs, restructuring charges, acquisition-related costs, amortization of acquired intangible assets, other income from the PicoChip settlement agreement, and non-cash expense on convertible senior notes, among other items.

在今天的電話會議中，我們將提及非 GAAP 財務衡量指標，其排除商譽及資產減損費用、以及以股份為基礎之薪酬費用與相關薪資成本、重整費用、併購相關成本、取得之無形資產攤銷、PicoChip 和解協議帶來的其他收益、以及可轉換優先票據的非現金費用等項目。

For a reconciliation of non-GAAP to GAAP financial measures, please refer to the investors section of our website at www.mindspeed.com, and our earnings press release, and our Form 8-K furnished to the SEC today. We do not provide a reconciliation of the forward-looking non-GAAP measures to GAAP measures, because of our inability to project restructuring charges, employee separation costs, and stock-based compensation-related expenses.

如需非 GAAP 與 GAAP 財務衡量指標之調節表，請參閱我們網站 www.mindspeed.com 的投資人專區、我們的財報新聞稿，以及我們今日向 SEC 提供的 Form 8-K。我們不提供前瞻性非 GAAP 指標與 GAAP 指標的調節，因為我們無法預測重整費用、員工離職相關成本，以及與以股份為基礎之薪酬相關的費用。

With that, I will now turn the call over to Raouf Halim, our Chief Executive Officer. Raouf.

接下來，我將把電話交給我們的執行長 Raouf Halim。Raouf。

Thank you, Kevin, and good afternoon everyone. Thank you for joining our call today. First, I'm sure many of you would like to know where we are regarding the evaluation of our strategic alternatives. As you may remember, we announced the hiring of Morgan Stanley on April 30 to assist in our evaluation.

謝謝你，Kevin，各位下午好。感謝各位今天參加我們的電話會議。首先，我相信許多人想了解我們在評估策略替代方案方面的進展。如各位所記得，我們在 4 月 30 日宣布聘請 Morgan Stanley 協助我們進行評估。

The management and the board are fully engaged in the process. We are committed to this process, and will update investors when we are in a position to report something further. This is all we will say about the process today.

管理團隊與董事會正全力投入此流程。我們致力於推動此流程，並將在可以進一步對外報告時更新投資人。今天關於此流程我們就說到這裡。

Turning to our operational performance for our fiscal third quarter, I'm pleased to report that we exceeded the forecast we provided on our last earnings call. Providing a quick overview of Q3, product revenue was $35.6 million with a 62% gross margin, exceeding our expectations, and resulting in a non-GAAP operating profit of approximately $644,000 versus a $541,000 non-GAAP operating loss the prior quarter.

談到我們 2013 會計年度第三季的營運表現，我很高興地報告，我們超越了上次財報電話會議所提供的預測。簡要概述第三季：產品營收為 3,560 萬美元，毛利率 62%，優於我們的預期，並帶來約 64.4 萬美元的非 GAAP 營業利益，相較前一季為 54.1 萬美元的非 GAAP 營業損失。

Revenue for all three businesses was approximately in line with last quarter. Diving into more detail, I will now provide an overview of the performance of our three businesses during the third quarter.

三大業務的營收皆大致與上一季持平。接下來我將更深入說明第三季三大業務的表現概況。

HPA accounted for 43% of our revenue in Q3, approximately flat with the prior quarter. Within the video segment, we are winning designs with our new 3G and 6G SDI components with customers quickly ramping to production, emphasizing the pull for higher performance for HD and UHD solutions.

HPA 在第三季占我們營收的 43%，與前一季大致持平。在影音領域，我們以新款 3G 與 6G SDI 元件贏得設計導入，客戶也迅速提升至量產，凸顯市場對 HD 與 UHD 解決方案更高效能的拉動需求。

Our share gains in the video market are enabled by our state-of-the-art crosspoint switches and SDI components. We expect the 4K ultra-high definition TVs, to drive an infrastructure upgrade cycle which supports this new viewing experience. Mindspeed is leading the interface in switching upgrade for this inflection point, by offering highly-integrated low power 4K SDI and crosspoint silicon.

我們在影音市場的市占提升，得益於我們最先進的 crosspoint switch 與 SDI 元件。我們預期 4K 超高畫質電視將帶動基礎設施升級週期，以支援這種新的觀影體驗。Mindspeed 透過提供高度整合、低功耗的 4K SDI 與 crosspoint 矽晶片，在此拐點上引領介面切換升級。

Another factor driving our success in HPA is our broad portfolio of PMDs targeting FTTX infrastructure. Although later than expected, the new China fiber-to-the-home tenders have now been awarded, and we expect shipments to start ramping this quarter. We believe this will lead to a stronger calendar second half in China, and a pickup in revenue for our next-generation PMD devices, targeting both ONUs and OLTs for GPON and GEPON.

推動 HPA 成功的另一項因素，是我們針對 FTTX 基礎設施的廣泛 PMD 產品組合。雖然較預期晚，中國新的光纖到戶（FTTH）標案現已完成授標，我們預期本季出貨將開始放量。我們相信這將帶動中國曆年下半年表現更強，並推升我們下一代 PMD 裝置的營收，該裝置同時鎖定 GPON 與 GEPON 的 ONU 與 OLT 應用。

Lastly, the HPA team is making significant strides with its high-speed portfolio targeting the enterprise space with continued design wins at Tier 1 OEMs. Mindspeed's portfolio of crosspoint switches reduces latency, while our CDRs and PMDs are enabling higher port densities by offering the industry's lowest power consumption.

最後，HPA 團隊在其高速產品組合方面也取得顯著進展，鎖定企業市場並持續在一線（Tier 1）OEM 客戶取得設計導入。Mindspeed 的 crosspoint switch 產品組合可降低延遲，而我們的 CDR 與 PMD 則以業界最低功耗，協助實現更高的埠密度。

Moving on to our to communications processors, CPU revenue represented 50% of our Q3 revenues and reached nearly $18 million in our fiscal third quarter, up 3% sequentially. We continue to focus on increasing market share in our core service provider provision broadband home router or BHR market.

接著談我們的通訊處理器業務，CPU 營收占第三季營收的 50%，在 2013 會計年度第三季接近 1,800 萬美元，較上一季成長 3%。我們持續聚焦於在核心服務供應商所提供的寬頻家用路由器（BHR）市場提升市占。

Mindspeed recently secured 2 BHR wins with leading North American and European service providers. At the same time, we recorded a follow-up diversification design win with our Tier 1 storage customer for Consumer NAS or CNAS with the original win beginning shipments in this current fourth fiscal quarter.

Mindspeed 最近在北美與歐洲的領先服務供應商取得 2 項 BHR 設計導入。同時，我們也在一線儲存客戶端取得後續的多元化設計導入，應用於消費型 NAS（CNAS）；而原先的設計導入將於本會計年度第四季開始出貨。

We are gaining incremental traction at additional storage and machine-to-machine suppliers. We expect our share in Japan to grow meaningfully in the fiber-to-the-home markets from our already large two-thirds share today. We are also seeing continued demand for our voice-over-IP products, as carriers transition to voice-over-LTE or VoLTE, and also, we expand our IP PBX platform, solidified with a new design win last quarter at a top 3 IP-PBX market share leader.

我們也在其他儲存與機器對機器（M2M）供應商端取得更多進展。我們預期在光纖到戶市場，日本的市占將在目前已達三分之二的基礎上顯著成長。我們也持續看到對我們 VoIP 產品的需求，因電信業者正轉向 VoLTE（voice-over-LTE）；同時我們也擴展 IP PBX 平台，並在上一季於 IP-PBX 市占前三的領導廠商取得新的設計導入，進一步鞏固該平台。

And finally, let me update you on our wireless infrastructure business, which accounted for $2.6 million, or 7% of Q3 revenues in line with our forecast. As we look forward, we are seeing strength in this business with our backlog coverage at this time above where we were last quarter. That said, our general expectations with this market have not shifted from the update we provided last quarter. Carriers worldwide remained committed to small cell deployments, and we expect that this market will ramp meaningfully.

最後，向各位更新我們的無線基礎設施業務：第三季營收為 260 萬美元，占第三季營收的 7%，符合我們的預測。展望未來，我們看到該業務呈現強勁態勢，目前的在手訂單覆蓋度高於上一季。不過，我們對該市場的整體預期並未偏離上一季所提供的更新：全球電信業者仍致力於小型基地台部署，我們預期該市場將出現顯著放量。

However, we expect the 4G LTE small cell market to be lumpy as new deployments later on. Continued advanced features and real carrier deployments of our small cell solutions are positioning us well for continued deployments in Korea, and the follow-on deployments in Japan and the US.

然而，我們預期 4G LTE 小型基地台市場在後續新部署展開時將呈現不均勻（lumpy）的波動。隨著我們小型基地台解決方案持續加入先進功能並在真實電信營運商環境中部署，這使我們在韓國的持續部署以及日本與美國的後續部署方面具備良好優勢。

Our hardened carrier grade software, and our design knowledge from real world small cell deployments, are further putting us ahead of our competitors, and maintaining, or improving, our market share. In fact, we scored an additional 5 LTE design engagements in the quarter, bringing our total to 40 LTE design engagements to date. Importantly, 2 of these were for TD-LTE.

我們強固的電信級軟體，以及來自真實世界小型基地台部署的設計經驗，進一步讓我們領先競爭對手，並維持或提升我們的市占率。事實上，本季我們新增取得 5 項 LTE 設計導入案，使我們迄今累計的 LTE 設計導入案達到 40 項。重要的是，其中 2 項為 TD-LTE。

Furthermore, we also scored 6 TD-SCDMA design engagements, as it appears, China will begin rolling out their version of 3G small cells in the future. As with 4G LTE, however, we will not be commenting as to the specific timing of these rollouts.

此外，我們也取得 6 項 TD-SCDMA 設計導入案，因為看起來中國未來將開始推出其版本的 3G 小型基地台。不過，如同 4G LTE，我們不會就這些推出時程的具體時間點發表評論。

We believe we are well-positioned in all 3 major markets in which we compete. In small cells, we lead the market and have carrier-proven technology for typically risk-averse service providers, enabling a smoother testing and deployment cycle for our OEM customers.

我們相信，在我們競爭的三大主要市場中，我們都處於有利位置。在小型基地台方面，我們領先市場，並擁有經營運商驗證的技術，能滿足通常較為風險趨避的服務供應商需求，讓我們的 OEM 客戶能有更順暢的測試與部署週期。

In communications processors, we are expanding our market presence beyond the BHR and customer premise equipment or CPE market, including major design wins with CNAS customers. And our HPA product line continues to open new opportunities and take share in new markets, driven by a strong portfolio of crosspoint switches, signal conditioners and optical PMDs.

在通訊處理器方面，我們正將市場版圖擴展至 BHR 與客戶端設備（CPE）市場之外，包括與 CNAS 客戶取得多項重大設計導入。另一方面，我們的 HPA 產品線在強大的 crosspoint switch、訊號調理器與光學 PMD 產品組合帶動下，持續開啟新機會並在新市場中提升市占。

With that, I'd now like to turn the call over to Stephen to provide more detail on last quarter's financials and our fiscal Q4 guidance. Stephen.

接下來，我想把電話會議交給 Stephen，請他更詳細說明上一季的財務表現以及我們 2013 會計年度第四季（fiscal Q4）的財測指引。Stephen。

Thank you, Raouf. First, let's discuss our Q3 results and then our outlook for the fiscal fourth quarter.

謝謝你，Raouf。首先，我們先討論第三季（Q3）業績，接著談談會計年度第四季的展望。

Total revenue for the fiscal third quarter was $35.6 million, essentially flat compared to the prior quarter. Product revenue from the high-performance analog business represented 43% of total revenue, and recorded $15.3 million, down 3%, compared to the prior quarter.

會計年度第三季總營收為 3,560 萬美元，與前一季相比基本持平。高效能類比（HPA）業務的產品營收占總營收 43%，為 1,530 萬美元，較前一季下降 3%。

Product revenue from the communications processors business represented 50% of total revenue, and recorded $17.7 million, up 3%, compared to the prior quarter. Product revenue from the wireless infrastructure business represented the remaining 7% of total revenue, and recorded $2.6 million, up 3%, compared to the prior quarter.

通訊處理器業務的產品營收占總營收 50%，為 1,770 萬美元，較前一季成長 3%。無線基礎設施業務的產品營收占其餘 7%，為 260 萬美元，較前一季成長 3%。

Product revenue for the fiscal third quarter was split by geographic region as follows -- Asia Pacific at 70%, Americas at 24%, and Europe at 6%. China specifically represented 33% of total fiscal third quarter product revenue. No end customer represented product revenues of 10% or greater in the fiscal third quarter.

會計年度第三季產品營收依地理區域分布如下：亞太 70%、美洲 24%、歐洲 6%。其中，中國占會計年度第三季產品總營收的 33%。會計年度第三季沒有任何終端客戶的產品營收占比達到或超過 10%。

Now turning to gross margin. Non-GAAP gross profit was $22 million, or 62% of product revenue, and 200 basis points ahead of our expectation of 60%. This was up 130 basis points versus our prior fiscal quarter on a non-GAAP basis, principally due to product mix.

接著談毛利率。非 GAAP 毛利為 2,200 萬美元，約占產品營收的 62%，較我們原先預期的 60% 高出 200 個基點。以非 GAAP 基礎計算，較上一會計季度提高 130 個基點，主要原因是產品組合。

Total non-GAAP operating expenses were $21.4 million, a reduction of $626,000 compared to the prior quarter, and consistent with our expectations. Non-GAAP operating expenses were comprised of research and development expenses of $14.4 million and selling, general and administrative expenses of $7 million. The resulting non-GAAP operating income for the fiscal third quarter was approximately $644,000.

非 GAAP 營業費用合計為 2,140 萬美元，較前一季減少 62.6 萬美元，並符合我們的預期。非 GAAP 營業費用包含研發費用 1,440 萬美元，以及銷售、一般及行政費用 700 萬美元。因此，會計年度第三季非 GAAP 營業利益約為 64.4 萬美元。

Now finishing the income statement for the fiscal third quarter. Non-GAAP, other income and expenses totaled a net expense of approximately $1 million, composed primarily of net interest expense. The provision for income taxes was $57,000. Non-GAAP net loss for the fiscal third quarter was approximately $461,000, resulting in a non-GAAP loss per share of $0.01.

接著完成會計年度第三季損益表。非 GAAP 其他收入與費用合計為約 100 萬美元的淨費用，主要由淨利息費用構成。所得稅費用為 5.7 萬美元。會計年度第三季非 GAAP 淨損約為 46.1 萬美元，非 GAAP 每股虧損為 0.01 美元。

Turning now to the balance sheet for the fiscal third quarter. Cash and cash equivalents were $43 million at the end of the fiscal third quarter, down $3.5 million versus the prior quarter.

接著看會計年度第三季資產負債表。截至會計年度第三季末，現金及約當現金為 4,300 萬美元，較前一季減少 350 萬美元。

Accounts receivable at the end of the quarter were $17.5 million, resulting in net days sales outstanding of 44 days, down from 48 days in the prior quarter. Inventories at the end of the quarter were $11.2 million, up slightly from $11 million in the prior quarter.

季末應收帳款為 1,750 萬美元，使得應收帳款週轉天數（DSO）為 44 天，較前一季的 48 天下滑。季末存貨為 1,120 萬美元，較前一季的 1,100 萬美元略增。

Now I'd like to provide our outlook for the fiscal fourth quarter of 2013. We anticipate fiscal Q4 product revenue to range between $35 million and $37 million. We expect HPA and wireless infrastructure to show modest improvement, offset by a softer quarter in communications processors after a strong sequential and year-over-year growth for the past 2 fiscal quarters.

接下來提供我們對 2013 會計年度第四季的展望。我們預期會計年度 Q4 產品營收介於 3,500 萬至 3,700 萬美元。我們預期 HPA 與無線基礎設施將小幅改善，但在通訊處理器方面，因過去兩個會計季度連續與年增表現強勁，第四季可能相對疲弱，將抵銷部分成長。

Backlog coverage at this point in the quarter is slightly stronger than it was in the prior quarter, supporting our guidance range. We expect non-GAAP gross margin to be approximately 60%, and non-GAAP operating expenses to be approximately $21.5 million.

本季截至目前的在手訂單（backlog）覆蓋度略強於上一季，支撐我們的指引區間。我們預期非 GAAP 毛利率約為 60%，非 GAAP 營業費用約為 2,150 萬美元。

Finally, we expect non-GAAP, other income and expense, and the provision for income taxes to be approximately $1.1 million, and weighted average shares outstanding to range between 41 million and 41.5 million shares.

最後，我們預期非 GAAP 其他收入與費用以及所得稅費用合計約為 110 萬美元，加權平均流通在外股數預估介於 4,100 萬至 4,150 萬股。

Operator, we are now ready to open the lines for questions.

接線員，我們現在準備開放提問。

Thank you, sir. (Operator Instructions). Our first question comes from Kevin Cassidy of Stifel. Your line is open.

謝謝您。（接線員指示）。我們的第一個問題來自 Stifel 的 Kevin Cassidy。您的線路已開通。

Thanks, and congratulations on the quarter. The video market with the crosspoint switches, can you -- do you know how long that buildout would last?

謝謝，也恭喜本季表現。關於採用 crosspoint switches 的影音市場，你們是否知道這波建置（buildout）大概會持續多久？

Yes. Kevin, this is Raouf. Yes, first of all, we're very pleased with our market share, and our position with Tier 1s in the video space with particularly crosspoints for that important infrastructure segment. We think we enjoy at least 70% to maybe as much as 80% market share with our crosspoints and video. But what we're seeing in video, Kevin, is a significant upgrade cycle associated with 4K TV deployments. We started shipping a little bit last quarter, fiscal Q3, and we expect those design wins to start ramping in earnest in this current fourth fiscal quarter. That's both crosspoints, as well as some of our other SDI video components. So we're quite pleased with how that's playing out.

是的。Kevin，我是 Raouf。是的，首先，我們對於我們的市占率，以及在影音領域、特別是該重要基礎設施區段的 crosspoint 產品在 Tier 1 客戶中的地位感到非常滿意。我們認為在 crosspoint 與影音方面，我們至少有 70% 甚至可能高達 80% 的市占率。不過 Kevin，我們在影音市場看到的是與 4K 電視部署相關的一個顯著升級週期。我們在上一季、也就是會計年度 Q3 已開始少量出貨，並預期這些設計導入會在目前這個會計年度第四季開始明顯放量。這包含 crosspoint，也包含我們其他一些 SDI 影音元件。因此，我們對目前的進展相當滿意。

Okay. And also, there was an announcement yesterday of Qualcomm making an investment in Alcatel-Lucent. How would that affect your business, do you think?

了解。另外，昨天有消息宣布 Qualcomm 對 Alcatel-Lucent 進行投資。你認為這會如何影響你們的業務？

Yes. So generally speaking, Kevin, we prefer not to comment on competitors. We're watching what's happening there. We're watching what areas -- how we'll use strategy adjust over time. I guess I would say in the small cell segments that we play in, ALU, at this point, appears to be only shipping, or shipping primarily, 3G today, where we are deploying with ALU with multiple Tier 1 carriers, 3G, HSPA, and so forth. And as far as we can tell, there's absolutely no near-term risk to our revenue stream.

是的。一般而言，Kevin，我們傾向不評論競爭對手。我們正在觀察那邊的動態，也在觀察其涉及的領域——以及我們將如何隨時間調整策略。我想我會這麼說：在我們所參與的小型基地台細分市場中，ALU 目前看起來只是在出貨、或主要是在出貨 3G；而我們正與 ALU 及多家 Tier 1 電信營運商進行部署，涵蓋 3G、HSPA 等等。就我們所知，我們的營收來源在短期內完全沒有風險。

Okay, great. And it just looks like you're doing a good job of controlling OpEx. How long can this last? What are your expectations for OpEx as we look out to 2014?

好的，很好。另外看起來你們在控制營業費用（OpEx）方面做得不錯。這樣的狀況能維持多久？展望 2014 年，你們對 OpEx 有什麼預期？

Yes. Kevin, so we've gone through quite a bit of, I guess I would say, focus on SG&A costs and wringing out all the costs that we can from our SG&A and support infrastructure over the past few quarters. We've minimized the impact to R&D within our 3 businesses.

是的。Kevin，我們在過去幾季對 SG&A 成本投入了相當多的心力，盡可能從我們的 SG&A 與支援基礎架構中擠出可節省的成本。同時，我們也將對三大業務研發（R&D）的影響降到最低。

And at this point, I think we're in a stable spot, and we expect OpEx to remain approximately these levels going forward until such time as we have a global merit increase. In which -- and at that time, it might increase somewhere around $300,000 to $500,000 per quarter. But at this point, I would think about it as sort of staying around the $21.5 million for at least the next 3 to 4 quarters.

目前我認為我們已處於穩定狀態，並預期在未來一段時間內 OpEx 將大致維持在目前水準，直到我們進行全球性的績效調薪（global merit increase）為止。屆時每季可能會增加約 30 萬到 50 萬美元。但就目前而言，我會把它視為至少在未來 3 到 4 季維持在約 2,150 萬美元左右。

Okay, great. Thanks.

好的，很棒。謝謝。

Thank you. At this time, I'd like to turn the call over to CEO, Raouf Halim for closing remarks.

謝謝。此時我想把電話會議交回給執行長 Raouf Halim，請他做結語。

Thank you very much, and we look forward to updating you on our next earnings call. Thank you, and have a good day.

非常感謝，我們期待在下一次法說會上向各位更新近況。謝謝，祝各位有美好的一天。

And ladies and gentlemen, that does conclude our program. Thank you for your participation, and have a wonderful day. You may disconnect your lines at this time.

各位女士、先生，我們的會議到此結束。感謝各位的參與，祝各位有美好的一天。您現在可以掛斷電話。