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

Good day, ladies and gentlemen, and welcome to the M/A-COM Technology Solutions Third Fiscal Quarter 2013 Financial Results. At this time, all lines 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，歡迎參加 M/A-COM Technology Solutions 2013 會計年度第三季財務業績電話會議。此刻，所有線路均為僅收聽模式。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, today's conference call is being recorded. I would now like to turn the conference over to your host today, Leanne Sievers with the Shelton Group. Please proceed.

提醒各位，今天的電話會議將被錄音。現在我想把會議交給今天的主持人——Shelton Group 的 Leanne Sievers。請開始。

Good afternoon and welcome to M/A-COM Technology Solutions Holdings, Inc. Third 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 CEO, 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 會計年度第三季財報電話會議。我是 Leanne Sievers，Shelton Group 執行副總裁，亦為 M/A-COM 的投資人關係顧問公司。今天與會的還有 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，本公司主張適用《1995 年私人證券訴訟改革法案》中所載之前瞻性陳述「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 quarterly report on Form 10-Q filed on May 3, 2013.

實際結果可能與今日討論內容存在重大差異。因此，關於可能導致該等差異之風險與不確定性的更詳細說明，敬請參閱本公司向美國證券交易委員會提交的文件，包括今日提交的 Form 8-K，以及於 2013 年 5 月 3 日提交的 Form 10-Q 季度報告。

In addition, any projections as to the Company's future performance represent management's estimate as of today, July 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，任何對本公司未來表現的預測，均代表管理層截至今日（2013 年 7 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之任何義務。

Additionally, the Company's press release and management's statements during this conference call will include discussions of certain non-GAAP measures and financial information. 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，本公司新聞稿以及管理層在本次電話會議中的陳述，將包含對若干非 GAAP 指標與財務資訊的討論。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的 Form 8-K 當前報告中；該等文件已於今日向美國證券交易委員會提交，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.

若各位目前無法全程收聽本次會議，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'll turn the call over to M/A-COM's President and CEO, John Croteau. Mr. Croteau, please go ahead.

現在我把電話交給 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 third quarter results and then review our end markets and the progress we continue to make towards executing on our growth strategy. Once completed, I'll turn the call over to Conrad to review our financial performance in further detail. I'll then conclude today's prepared comments by providing our guidance for the fourth fiscal quarter before opening the call for questions.

謝謝你，Leanne。各位好，感謝各位今天加入。我想先概述我們第三季的業績，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。完成後，我會把電話交給 Conrad，請他更詳細地說明我們的財務表現。之後我將以提供第四會計季的財測作為今天事先準備發言的結語，並開放提問。

Revenue for the third quarter was $82.2 million, slightly above the high end of our guidance and represents a 5.7% sequential increase. Non-GAAP gross margin of 45% was at the midpoint of our guidance and the non-GAAP net income of $11.5 million, or $0.24 per diluted share, was at the high end of our guidance. We finished the quarter with $115.6 million in cash and cash equivalents, an increase of $12.3 million and no debt.

第三季營收為 8,220 萬美元，略高於我們財測區間的上緣，較前一季成長 5.7%。非 GAAP 毛利率 45% 位於我們財測的中點；非 GAAP 淨利為 1,150 萬美元，或稀釋後每股 0.24 美元，位於我們財測區間的上緣。本季期末現金及約當現金為 1.156 億美元，增加 1,230 萬美元，且無負債。

Taking a closer look at our revenue by market, 27% of our third quarter revenue was from Networks; 27% from Aerospace & Defense; 27% from Automotive; and 19% from Multi-Market. During the quarter, we saw a surge in demand for our catalog products, driven mainly by strong sales across Aerospace & Defense, Networks, as well as Automotive markets.

進一步按市場別檢視營收，第三季營收中：27% 來自網路（Networks）；27% 來自航太與國防（Aerospace & Defense）；27% 來自汽車（Automotive）；19% 來自多元市場（Multi-Market）。本季我們看到型錄產品需求激增，主要由航太與國防、網路以及汽車市場的強勁銷售所帶動。

Automotive sales outpaced our expectations quarter-on-quarter, which we believe was driven by [pull-ins] at Ford's European factories to avoid any supply delays stemming from the Fourth of July holiday in the US. Going forward, we continue to believe that any near-term growth in this market would be contingent on market share gains by Ford and end market growth.

汽車業務的銷售較前一季超出我們的預期；我們認為主要原因是 Ford 在歐洲工廠出現了提前拉貨（[pull-ins]），以避免美國 7 月 4 日假期可能造成的供應延遲。展望未來，我們仍認為該市場的任何短期成長，將取決於 Ford 的市占率提升以及終端市場成長。

Sales into the Networks market grew a modest 3% quarter-on-quarter. We have yet to see any meaningful recovery in the wireless infrastructure space and continue to approach this market with caution. Optoelectronics remains a key focus area for growth.

網路市場的銷售較前一季小幅成長 3%。我們尚未看到無線基礎設施領域有任何顯著復甦，並將持續以審慎態度面對該市場。光電（Optoelectronics）仍是我們成長的關鍵聚焦領域。

During the quarter, we had several design wins at tier 1 and tier 2 system and subsystem companies in Asia and the US for 100G coherent, 100G submarine, and CFP and CFP2 module applications. We believe that these design wins, along with our high performance product portfolio, position us well for the anticipated decade-long build-out of the 100G fiber optics market.

本季我們在亞洲與美國的第一級（tier 1）與第二級（tier 2）系統及子系統公司取得多項設計導入（design wins），涵蓋 100G 相干（coherent）、100G 海底（submarine），以及 CFP 與 CFP2 模組應用。我們相信，這些設計導入加上我們的高效能產品組合，使我們能在預期長達十年的 100G 光纖市場建置潮中占據有利位置。

Sales into Aerospace & Defense grew 9% quarter-on-quarter. We continue to see no impact of sequestration on our business and we believe that sales growth in this market is a direct result of market share gains. Additionally, we continue to strengthen our strategic relationships in this area, and I'd like to give you some additional color on three recent developments that we believe position us for future success in the rapidly growing landscape of the modern battlefields.

航太與國防市場的銷售較前一季成長 9%。我們持續未看到預算自動削減（sequestration）對我們業務造成影響，並認為該市場的銷售成長直接來自市占率提升。此外，我們也持續強化在此領域的策略關係；我想就三項近期進展提供更多說明，我們相信這些進展將使我們在現代戰場快速成長的格局中，為未來成功奠定基礎。

First, this morning we announced that M/A-COM has been selected by Northrop Grumman to supply market-leading monolithic microwave-integrated circuit technology for the development of next-generation X-band radar systems. Northrop Grumman is a premier supplier to domestic and foreign programs for airborne surveillance and sensor systems used across multiple airborne platforms. For this reason, we believe that Northrop Grumman has the potential to become one of our largest direct customers within the next two years.

第一，今天上午我們宣布，M/A-COM 已獲 Northrop Grumman 選定，將提供市場領先的單晶微波積體電路（monolithic microwave-integrated circuit, MMIC）技術，用於開發下一代 X 波段雷達系統。Northrop Grumman 是國內外多項計畫的頂尖供應商，提供用於多種機載平台的空中監視與感測器系統。因此，我們相信 Northrop Grumman 在未來兩年內有潛力成為我們最大的直接客戶之一。

Second, we recently announced that ELTA named M/A-COM a strategic partner for the development of commercial and aerospace and defense systems. Based in Israel, ELTA has a long history of providing surveillance and reconnaissance systems and smart munitions to customers worldwide. We believe that ELTA also has the potential to join the ranks as one of our largest direct customers in the years to come.

第二，我們近期宣布 ELTA 指定 M/A-COM 為商用以及航太與國防系統開發的策略夥伴。ELTA 總部位於以色列，長期以來為全球客戶提供監視與偵察系統以及智慧彈藥。我們相信，ELTA 也有潛力在未來幾年躋身成為我們最大的直接客戶之一。

Third, we recently executed a strategic licensing agreement with GCS that further positions us as a leader in gallium nitride, which we believe will be the industry's next disruptive technology. The agreement creates the industry's first dual-source domestic supply chain for GaN technology. These 0.5 micron, 0.25 micron, and 0.15 micron process technologies are a deal for commercial and defense applications ranging from RF jammers to millimeter-wave satellite links, from five to 500 watts and from small handheld military radios to massive seaborne radar rays.

第三，我們近期與 GCS 簽署策略授權協議，進一步鞏固我們在氮化鎵（gallium nitride, GaN）領域的領導地位；我們相信 GaN 將是產業下一個顛覆性技術。該協議建立了業界首個雙來源（dual-source）的國內 GaN 技術供應鏈。這些 0.5 微米、0.25 微米與 0.15 微米製程技術，適用於商用與國防應用，範圍從射頻干擾器（RF jammers）到毫米波衛星鏈路，功率從 5 瓦到 500 瓦，並涵蓋從小型手持軍用無線電到大型海上雷達陣列等應用。

The agreement establishes M/A-COM as the only Company in the industry that can provide customers with a true dual-source for high performance GaN devices, enabling a sustainable and reliable supply chain that ensures long-term surety of supply, thus removing one of the remaining barriers to mainstream adoption of GaN technology.

該協議使 M/A-COM 成為業界唯一能為客戶提供真正雙來源高效能 GaN 元件的公司，從而建立可持續且可靠的供應鏈，確保長期供應保障（surety of supply），並因此移除 GaN 技術走向主流採用所剩的障礙之一。

In review, we are successfully executing on our growth strategy. Our renewed focus on our core catalog business has resulted in three quarters of sequential growth, which is a result of taking market share despite an overall challenging environment. We are securing strategic vendor selections in our target markets to drive medium to long-term growth and we are making strategic investments in next-generation technologies and associated supply chains, which we believe position us to outperform the industry for years to come.

總結而言，我們正成功執行成長策略。我們重新聚焦於核心型錄業務，帶來連續三季的逐季成長；在整體環境仍具挑戰的情況下，這反映出我們持續取得市占率。我們在目標市場中取得策略性供應商入選（vendor selections），以推動中長期成長；同時也在下一代技術及其相關供應鏈上進行策略性投資，我們相信這將使我們在未來多年持續優於產業表現。

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

接下來，我把電話交給 Conrad，請他說明我們 2013 年第三季的財務業績。

Thank you, John, and good afternoon, everyone. 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. 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 include in our earnings press release circulated earlier today for your reference. With that in mind, let me now begin with a review of our financials for the third quarter of fiscal 2013.

謝謝你，John，各位下午好。在我接下來的評論以及 John 的評論中，除營收外，所有損益表金額與百分比都將以非 GAAP 基礎進行討論。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 指標之間的調節表已包含在我們今天稍早發布並供各位參考的財報新聞稿中。基於此，現在我先從回顧 2013 會計年度第三季的財務表現開始。

Revenue for the third quarter was $82.2 million, an increase of 5.7% compared to $77.8 million in the second quarter and an increase of 6.6% compared to the $77.1 million in the third quarter of 2012. The sequential increase in revenue was driven by growth across our A&D, Networks and Automotive end markets with Multi-Market relatively flat sequentially.

第三季營收為 8,220 萬美元，較第二季的 7,780 萬美元成長 5.7%，也較 2012 年第三季的 7,710 萬美元成長 6.6%。營收的季增主要由 A&D、網路與車用終端市場的成長所帶動，而多元市場（Multi-Market）相較前一季則大致持平。

Gross profit in the third quarter was $37 million, or 45% of revenue, compared to $34.6 million, or 44.5% of revenue in the prior quarter, representing a 50 basis point sequential improvement. Gross profit in the prior year quarter was $36.1 million, or 46.8%. Our focus continues to be on improving gross margin through increased sales of higher margin products, market growth, and channel efficiencies as well as the ongoing benefits of operational efficiencies.

第三季毛利為 3,700 萬美元，占營收 45%，相較前一季的 3,460 萬美元（占營收 44.5%）提升 50 個基點，呈現季比改善。去年同期毛利為 3,610 萬美元，占比為 46.8%。我們仍專注於透過提高高毛利產品銷售、推動市場成長與通路效率，以及持續的營運效率效益，來改善毛利率。

In terms of our operating expenses for the third quarter, total operating expenses were $20.8 million, compared to $19.7 million in the prior quarter, both of which represent 25.3% of revenue and compared to operating expenses in the prior year quarter of $18.8 million, or 24.3% of revenue.

就第三季營業費用而言，營業費用總額為 2,080 萬美元，較前一季的 1,970 萬美元增加；兩季皆占營收 25.3%。相較之下，去年同期營業費用為 1,880 萬美元，占營收 24.3%。

Looking specifically at investment in new products, our research and development expense for the third quarter was $9.7 million, flat with the prior quarter and compared to $8.8 million in the third quarter of 2012. R&D as a percentage of revenue represented 11.8% in the third quarter, compared to 12.4% in the prior quarter and 11.4% in the prior year quarter.

就新產品投資而言，第三季研發費用為 970 萬美元，與前一季持平，並高於 2012 年第三季的 880 萬美元。第三季研發費用占營收比重為 11.8%，相較前一季為 12.4%，去年同期為 11.4%。

SG&A expenses were $11.1 million, compared to $10.1 million in the prior quarter and $9.9 million in the prior year quarter. As a percentage of revenue, SG&A represented 13.5% in the third quarter, compared to 12.9% in both the prior quarter and the prior year quarter.

SG&A 費用為 1,110 萬美元，相較前一季為 1,010 萬美元、去年同期為 990 萬美元。以營收百分比計，第三季 SG&A 占比為 13.5%，相較前一季與去年同期皆為 12.9%。

Income from operations was $16.2 million, or 19.8% of revenue. This compares to $14.9 million, or 19.1% of revenue, in the prior quarter and $17.3 million, or 22.5% of revenue, in the prior year quarter. We expect operating margins will expand over time along with gross margin as a result of increased revenue from higher margin products and the benefit of further operational efficiencies.

營業利益為 1,620 萬美元，占營收 19.8%。相較前一季為 1,490 萬美元（占營收 19.1%），去年同期為 1,730 萬美元（占營收 22.5%）。我們預期，隨著高毛利產品帶來的營收增加以及進一步營運效率的效益，營業利益率將隨毛利率一同隨時間擴張。

Turning to income taxes, our effective income tax rate for the third quarter was 29%, compared to 21.5% in the prior quarter. As a reminder, the prior quarter included a one-time benefit related to the reinstatement of the US Federal R&D Tax Credit in January 2013, which enabled us to recognize related tax credits arising from calendar year 2012.

談到所得稅，第三季有效所得稅率為 29%，相較前一季為 21.5%。提醒各位，前一季包含一次性利益，與 2013 年 1 月美國聯邦研發（R&D）稅額抵減恢復生效相關，使我們得以認列源自 2012 曆年的相關稅額抵減。

Our third quarter net income was $11.5 million, or $0.24 per diluted share, and compares to the prior quarter net income of $11.7 million, or $0.24 per diluted share, which included a $0.02 per share benefit from the one-time tax credit. In the prior year quarter, net income was $11.8 million, or $0.25 per diluted share. The share count used to compute EPS was 48.2 million shares for the third quarter, 48 million shares for the prior quarter, and 47.8 million shares in the prior year quarter.

第三季淨利為 1,150 萬美元，稀釋後每股盈餘為 0.24 美元；相較前一季淨利為 1,170 萬美元、稀釋後每股盈餘同為 0.24 美元（其中包含一次性稅額抵減帶來每股 0.02 美元的利益）。去年同期淨利為 1,180 萬美元，稀釋後每股盈餘為 0.25 美元。用於計算 EPS 的股數為：第三季 4,820 萬股、前一季 4,800 萬股、去年同期 4,780 萬股。

Turning to the balance sheet, as of June 28, 2013, our cash and cash equivalents were $115.6 million, which represents an increase of $12.3 million since March 29, 2013 and $31.1 million since September 28, 2012. Cash flow from operations for our third quarter was $13.4 million, compared to $13 million in the prior quarter and $8.1 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 6 月 28 日，我們的現金及約當現金為 1.156 億美元，較 2013 年 3 月 29 日增加 1,230 萬美元，較 2012 年 9 月 28 日增加 3,110 萬美元。第三季營運活動現金流量為 1,340 萬美元，相較前一季為 1,300 萬美元、去年同期為 810 萬美元。我們沒有任何負債，並擁有 1.5 億美元的循環信用額度以提供額外流動性。

Accounts receivable of $55.2 million represents 61 days sales outstanding, which compares to $49.6 million and 58 days sales outstanding at the end of the prior quarter. Inventory of $54.7 million, representing 3.3 turns, compares to $57.2 million, or three turns, in the prior quarter.

應收帳款為 5,520 萬美元，代表應收帳款週轉天數（DSO）為 61 天；相較前一季期末為 4,960 萬美元、DSO 為 58 天。存貨為 5,470 萬美元，周轉率為 3.3 次；相較前一季為 5,720 萬美元、周轉率為 3 次。

Capital expenditures in the third quarter of $2 million, or 2.4% of revenue, compares to 4% of revenue in the prior quarter. As we expand into GaN wafer fabrication, we will increase our investment in intellectual property and capital expenditures, and we expect to incrementally spend $3 million to $5 million on this initiative in the fourth quarter of fiscal 2013. Depreciation on property and equipment for the quarter was $2.5 million.

第三季資本支出為 200 萬美元，占營收 2.4%，相較前一季占營收 4%。隨著我們擴展至 GaN 晶圓製造，我們將增加在智慧財產與資本支出方面的投資，並預期在 2013 會計年度第四季就此計畫額外支出 300 萬至 500 萬美元。本季不動產、廠房及設備折舊為 250 萬美元。

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

接下來我把電話交回給 John，他將提供我們對 2013 會計年度第四季的業務展望。

Thanks, Conrad. For the fourth quarter ending September 27, 2013, we're currently expecting revenue to be in the range of $82 million to $86 million, non-GAAP gross margin between 45% and 47%, and non-GAAP earnings per diluted share between $0.24 and $0.26 on an expected 48.3 million shares outstanding. As of today, we have already shipped or are presently [firm booked] for 84% of the midpoint of that revenue range.

謝謝你，Conrad。對於截至 2013 年 9 月 27 日的第四季，我們目前預期營收將落在 8,200 萬至 8,600 萬美元之間，非 GAAP 毛利率介於 45% 至 47%，非 GAAP 稀釋後每股盈餘介於 0.24 至 0.26 美元，預期流通在外股數為 4,830 萬股。截至今天，我們已出貨或目前已 [firm booked] 的金額，約占該營收區間中點的 84%。

Operator, you may now open the call for questions.

接線員，現在可以開放提問。

Thank you. (Operator Instructions). Our first question comes from Frank Keller with Barclays. Please go ahead with your question. Frank, your line is open. Could you try pressing your mute button?

謝謝。（接線員指示）。我們的第一個問題來自 Barclays 的 Frank Keller。請提出您的問題。Frank，您的線路已開通。您可以試著按一下靜音鍵嗎？

Hey, guys. Thanks for taking the call, [quarter and guide here]. Just a quick question for you on gross margins in the quarter and then looking forward. Just kind of need to get your thoughts on the moving pieces there. I know that you're seeing some strength in Automotive; that had been somewhat of an overhang on gross margins in the past and it doesn't appear to be anymore. So I just kind of wanted to get your thoughts around your solid gross margin guidance for September, if you could, please. Thank you.

嗨，各位。謝謝接聽電話，[quarter and guide here]。我有個關於本季毛利率以及往後展望的簡短問題，想聽聽你們對其中變動因素的看法。我知道你們在車用方面看到一些強勁表現；過去那曾對毛利率造成一些壓力，但現在看起來不再是了。所以我想請你們談談對 9 月毛利率穩健指引的看法，如果可以的話。謝謝。

Sure, Frank (inaudible). Yes, actually in terms of the gross margin, as you know, our model is 60% drop through to gross profit on incremental revenue. We were slightly below that in the third fiscal quarter because we had unexpected strength due to seasonality at Ford. So it's slightly below the model. On the outlook for the fourth quarter growth, we're actually above the 60% model because of that seasonality swinging back in favor of the higher margin part of the portfolio growing.

當然，Frank（聽不清楚）。是的，實際上就毛利率而言，如你所知，我們的模型是假設增量營收有 60% 會流入毛利。我們在 2013 會計年度第三季略低於該模型，因為 Ford 受季節性因素影響出現了超出預期的強勁需求，所以略低於模型。至於第四季成長的展望，我們其實高於 60% 的模型，因為該季節性因素回擺，有利於產品組合中毛利較高的部分成長。

Okay, that's great. And then, I wanted to get your thoughts on -- I guess you started to answer it because you were talking about the seasonality in Automotives business. But just wanted to kind of get your thoughts on the trajectory for growth there, assuming sort of end markets like Networks and Aerospace & Defense, what are going to be the drivers into September? Thanks.

好的，太好了。然後我想請教你們對於——我想你們已經開始回答了，因為你們提到車用業務的季節性——但我還是想聽聽你們對那邊成長軌跡的看法。假設像網路與航太與國防等終端市場，那麼推動 9 月的動能會是哪些因素？謝謝。

Yes. When we looked at the growth in the third quarter, about half of the upside above our midpoint guidance came out of Automotive. Not just Ford, but for the most part Ford, and that was related to, as I mentioned in the scripted part of the call, the seasonality effect as it related to European factories on the Fourth of July; that was unanticipated behavior from Ford. I would say on a go-forward basis I think we're going to see a little bit of a correction in the other direction on Automotive.

是的。當我們檢視第三季的成長時，超出我們指引中點的上行幅度約有一半來自汽車業務。不只是福特，但大多數是福特；這與我在電話會議事先準備的講稿部分提到的季節性效應有關，該效應與歐洲工廠在美國獨立日（7 月 4 日）期間的運作安排相關；這是福特出現的、我們未預期的行為。我會說，往後看，我認為我們會在汽車業務上看到一些朝相反方向的修正。

Networks, we're very, very cautious, as I mentioned. We don't see any kind of meaningful recovery in the wireless infrastructure space. Cable, the CATV business is still awaiting the DOCSIS 3.1 upgrade. Optical is performing well for us. We're kind of in the pre-production volume levels and stepping up in coming quarters to production levels, and that would be beyond the fourth quarter, I should say.

網路方面，如我提到的，我們非常、非常謹慎。我們看不到無線基礎設施領域有任何有意義的復甦。有線方面，CATV 業務仍在等待 DOCSIS 3.1 升級。光學產品對我們而言表現良好。我們目前大致處於量產前的出貨量水準，並將在接下來幾季提升到量產水準；我應該說，那會是在第四季之後。

So Networks is -- and it was up a modest 3%, which isn't bad. The real surprise was the strength we had across out catalog portfolio, really spanning all of these end markets. And notably, Aerospace & Defense were up 9% in that particular end market, which in light of sequestration was a surprise even to us. We felt we were relatively immune -- relative is the operative word there. But sure enough, delivering 9% growth and a surge in catalog demand was wonderful and it was really due to turns business. We had very strong turns within the quarter and our short-term demand remains into the fourth quarter very strong.

因此網路業務是——而且它小幅成長了 3%，這並不差。真正令人意外的是，我們的型錄產品組合在各方面都展現出強勁力道，幾乎橫跨所有這些終端市場。尤其是航太與國防在該終端市場成長了 9%，在預算自動削減（sequestration）的背景下，連我們自己都感到意外。我們原本覺得自己相對不受影響——「相對」是關鍵字。但果然，交出 9% 的成長以及型錄需求的激增非常令人振奮，而這主要是因為急單（turns）業務。我們在本季內的急單非常強勁，而我們的短期需求延續到第四季仍然非常強。

All right. Well, thanks, guys. That's really helpful. I appreciate the time.

好的。謝謝各位。這真的很有幫助。感謝你們撥冗。

You're welcome.

不客氣。

Our next question comes from Harlan Sur of JPMorgan. Please go ahead with your question.

下一個問題來自摩根大通（JPMorgan）的 Harlan Sur。請提出您的問題。

Hi, good afternoon. Thanks for taking my question and nice job on the quarterly execution. A question on your catalog products. Obviously, a very important part of the portfolio, core part of the business. Is the team actively trying to improve the attach rates of your catalog products to certain of the more program-specific products and applications that you're going after? Are you gaining more dollar content with higher catalog attach rates? And if you are, maybe if you can quantify the improvements that you've seen in attach rates, let's say, over the past three to four quarters.

嗨，午安。謝謝讓我提問，也恭喜你們本季執行得很出色。我想問你們的型錄產品。顯然這是產品組合中非常重要的一部分，也是業務的核心部分。團隊是否正積極嘗試提高型錄產品在你們所鎖定的某些更偏專案（program-specific）的產品與應用中的搭載率（attach rates）？更高的型錄搭載率是否讓你們取得更多的美元內容（dollar content）？如果是的話，能否量化一下你們在搭載率方面的改善，例如過去三到四個季度的變化？

Yes. Actually, Harlan, I would actually suggest, given our history, which you are very well aware of, I would describe our business as actually quite the opposite. We have a tremendous footprint with our catalog products throughout thousands of customers. And our game is all about increasing our share of more of the system-level integrated [MIMICs], and that is a central part of our growth strategy.

是的。其實，Harlan，我反而會建議，考量到我們的歷史——你非常清楚——我會把我們的業務描述為幾乎相反。我們的型錄產品在數千家客戶中擁有非常龐大的佈局與足跡。我們的重點在於提高我們在更多系統級整合式 [MIMICs] 上的市占，而這是我們成長策略的核心部分。

I think one of the refinements to our strategy over the past quarter is we've really identified the end market growth areas, things like the microwave X-band radar space and millimeter wave satellite communication space, which are growing much faster than the end markets. And those are the areas where we really fixate on trying to increase our share of wallet and, as you describe, attach rate for the more integrated MIMICs.

我認為我們在過去一季對策略做的一項精進，是我們確實辨識出終端市場的成長領域，例如微波 X 波段雷達領域與毫米波衛星通訊領域，這些領域的成長速度遠高於整體終端市場。而這些正是我們高度聚焦、試圖提升客戶錢包份額（share of wallet）以及如你所說、提升更高整合度 MIMICs 的搭載率的地方。

And by the way, Northrop Grumman is a poster child for that success and is exactly the way I'd describe our historical business and the ability to step up and be a mainstream MIMIC supplier is a very big deal for us.

順帶一提，諾斯洛普·格魯曼（Northrop Grumman）就是這種成功的典型案例（poster child），也完全符合我對我們歷史業務的描述；能夠進一步成為主流的 MIMIC 供應商對我們而言是非常重要的一件事。

Great to hear that. And then, also good to see the dual sourcing arrangement with GCS that you announced last week and the GaN manufacturing. Obviously, as you said, important for operational continuity and then I know it's also important to some of your customers that may require domestic manufacturing.

很高興聽到這點。另外，也很高興看到你們上週宣布與 GCS 的雙重來源（dual sourcing）安排以及 GaN 製造。顯然，如你所說，這對營運連續性很重要，而且我也知道，對於某些可能要求國內製造的客戶而言，這同樣重要。

I think my question here is that with the GaN technology in-house, can M/A-COM now develop their own processes and sort of custom tailor certain aspects of the GaN technology to better serve your customer's performance requirements? And then, maybe if you can just help us quantify roughly how big your GaN-based products are as a percent of your total revenues today and how big do you expect that to be maybe looking out over the next 12 months or so?

我在這裡的問題是：隨著 GaN 技術內製化，M/A-COM 現在是否能開發自有製程，並在某種程度上客製化 GaN 技術的某些面向，以更好地滿足客戶的效能需求？另外，能否協助我們大致量化一下：目前以 GaN 為基礎的產品約占你們總營收的百分之多少？展望未來約 12 個月左右，你們預期會成長到多大？

I don't have the numbers in front of me about what our GaN business would be in 12 months, but I would say -- describe it that the revenues today are minimal. We have over 25 customers, probably over 30 active customers now for the GaN portfolio, but those are still in the early stages of design wins -- not design wins, but pre-production. So certainly on a go-forward basis it's going to be a very substantial driver for our growth. It's just that we're still in the relatively early stages.

我手邊沒有 12 個月後我們 GaN 業務規模的數字，但我會這樣描述——目前的營收很小。我們在 GaN 產品組合上有超過 25 家客戶，現在可能已經有超過 30 家活躍客戶，但這些仍處於設計導入的早期階段——不是設計導入（design wins），而是量產前（pre-production）。因此，往後看，它肯定會成為我們成長非常重要的驅動力；只是我們仍在相對早期的階段。

To get to the first part of your question, you had asked about do we have the ability to differentiate at the [point of technology] level? The answer is yes, absolutely, definitively. That said, I personally do not believe that that is a primary consideration in the short to medium-term. We have done extensive benchmarking of GaN technology available throughout the industry from various foundries and proprietary suppliers, among competitors. And the first approximation, the level -- the degree of differentiation at this juncture is minimal.

回到你問題的第一部分，你問的是我們是否有能力在 [point of technology] 層級做出差異化？答案是：是的，絕對可以，毫無疑問。不過，我個人不認為這在短到中期會是主要考量。我們已對產業中各種晶圓代工廠（foundries）與具專有技術的供應商（包含競爭對手）所提供的 GaN 技術做了大量的標竿比較（benchmarking）。以第一近似來看，在目前這個時間點，差異化的程度很有限。

This deal with GCS was all about getting a supply chain that can actually enable volume production. And I'll point out Northrop Grumman as a very good example of where the issue lies. They require domestic supply and control over the domestic supply chain for decades. The types of programs they service last for decades.

與 GCS 的這筆交易，重點在於建立一條能夠支援量產的供應鏈。我也要指出，諾斯洛普·格魯曼是問題所在的一個很好的例子。他們要求國內供應，並且在數十年的時間尺度上掌控國內供應鏈。他們所服務的專案類型會持續數十年。

And regardless of whether it's an earthquake in California, tornadoes in Texas, tornadoes or thunderstorms or hurricanes in Massachusetts or typhoons, supply -- continuity of supply is front-and-center, not just for Aerospace & Defense, but I can tell you vendor qualification for the major Networks guys globally. Multiple sources of supply is a requirement for things to go mainstream. And moving from the first generation of what you might call [beaker fabs] to real mainstream volume production capability with dual sources is -- was to me, in my experience, one of the remaining barriers to mainstream adoption.

而且不論是加州地震、德州龍捲風、麻薩諸塞州的龍捲風或雷暴或颶風，或是颱風，供應——供應連續性都是最核心的議題；不僅對航太與國防如此，我也可以告訴你，對全球主要網路設備大廠而言，供應商資格認證（vendor qualification）同樣如此。要讓產品走向主流，多重供應來源是必要條件。而從你可能稱之為第一代「燒杯式晶圓廠」（[beaker fabs]）走向真正主流的量產能力、並具備雙重來源——以我的經驗來看——是主流採用仍需跨越的障礙之一。

Great. And then, my last question is for Conrad. Obviously, as John mentioned, your incremental follow-through on the gross margins is going to come in better than [60]% in your September quarter guidance. How much of that is mix related versus continued improvements in manufacturing costs and operations? Thank you.

很好。那我最後一個問題要問 Conrad。顯然，如 John 提到的，你們在毛利率上的增量落實（incremental follow-through）將會優於你們對 9 月季度指引中的 [60]%。其中有多少是產品組合（mix）因素，多少是製造成本與營運持續改善所帶來的？謝謝。

Okay. Harlan, the restructuring initiative that we put in place this past quarter has an additional approximately 10 basis points in the September quarter. So the balance of the contribution will be relative to mix and higher margin products that start to come in.

好的。Harlan，我們在上一季推動的重整（restructuring）計畫，在 9 月季度會額外貢獻約 10 個基點。因此，其餘的貢獻將主要來自產品組合，以及開始導入的較高毛利產品。

Good to hear. Thank you very much.

很高興聽到。非常感謝。

Thank you.

謝謝。

Our next question comes from Mark Lipacis with Jefferies. Please go ahead with your question.

下一個問題來自 Jefferies 的 Mark Lipacis。請提出您的問題。

Thanks for taking my questions. On the surge in the catalog orders, we've heard that from a number of other broad-based companies and I was hoping that you'd share your view on to what extent is this end market demand just getting better versus a seasonal impact versus the supply chain tightening up for some people and that motivating kind of a restocking of inventories.

謝謝讓我提問。關於型錄訂單的激增，我們也從其他一些業務面向廣泛的公司聽到類似情況。我希望你們能分享你們的看法：這在多大程度上是終端市場需求真的在改善，相對於季節性影響，或是某些人的供應鏈變得更緊、進而促使某種庫存回補（restocking）？

When you look at the book-to-bill ratios within our distribution partners, my interpretation is we're really bouncing along the bottom. If there's a recovery, it's a very soft recovery. It's certainly not snapping back. And in terms of inventory levels, similar comment, it doesn't feel that it's an end market demand-driven artifact.

當你看我們通路合作夥伴的出貨對訂單比（book-to-bill ratios）時，我的解讀是我們基本上仍在底部徘徊。如果有復甦，那也是非常溫和的復甦，絕對不是快速反彈。至於庫存水位，也是類似的評論；感覺上這並不是由終端市場需求驅動所造成的現象。

Our sense, if you look at -- and we track very closely, as you would expect -- our peers' announcements, we see the end market is very consistent with our peer guidance and our peer results. I really attribute our ability to grow sequentially here, of getting back in the game of keeping our eye on the ball in our catalog business, previously and appropriately we have a lot of exciting growth opportunities for our more application-specific investments, which are thoroughly appropriate and do pay off and will pay off big-time, but certainly not to the exclusion that we can grow share for our core business.

我們的看法是，如果你看——而且我們如你所預期地非常密切追蹤——同業的公告，我們看到終端市場的狀況與同業的指引與同業的結果非常一致。我把我們這次能夠在序列上成長，歸因於我們重新回到把注意力放在型錄業務、把球看緊的狀態。先前我們確實、而且合理地，把很多精力放在更偏應用專屬的投資上，那些都是非常令人興奮的成長機會，也確實會帶來回報、並將帶來很大的回報；但當然不應以犧牲我們核心業務的市占成長為代價。

And a lot of the pieces of business that we have been landing are things which I would say are things that we just wouldn't have paid as close attention and landed in the past. It's through the accumulation of a lot of singles and in-field hits that we've been able to evolve the business forward in the past few quarters. It doesn't feel like it's in some kind of macro recovery within our target customers.

而且我們近期拿下的許多業務，我會說是一些在過去我們不會投入同樣程度關注、也不太可能拿下的案子。正是透過累積許多「一壘安打」與「內野安打」，我們才能在過去幾個季度把業務持續往前推進。就我們的目標客戶而言，這並不讓人覺得是某種總體經濟復甦所帶動的。

Fair enough. The second question, John, on the optical 100 gig of build-out, could you give us your view on how this plays out over the next five years or so? What are the kind of boxes that you expect to be deployed into? Where in the network are you going?

了解。第二個問題，John，關於光通訊 100G 的建置擴張，你能否分享你對未來大約五年的看法？你預期會部署到哪些類型的設備（box）上？會在網路的哪些位置部署？

Well, we tend to be on the long haul side and not in the data centers as much, and I would say that's with our existing product portfolio. One of the things we're really looking to do is broaden our footprint. That is the one bright spot, in my opinion, within -- certainly within the Network space of end market -- a healthy end market condition. So I would say it's really that part of the market where we're currently focused, but I'm reluctant to comment further about where we aspire to be in the future.

嗯，我們通常偏向長途（long haul）端，而不是那麼多在資料中心端；我會說這是就我們現有的產品組合而言。我們真正想做的一件事，是擴大我們的覆蓋範圍（footprint）。依我看，那是——至少在網路（Network）這個終端市場領域——一個亮點，也就是終端市場狀況健康。所以我會說，我們目前確實聚焦在那一塊市場，但對於我們未來希望走向哪裡，我不太願意再多做評論。

Fair enough. Last question, on the wireless infrastructure side, and you're not alone on this. It seems like we've just been waiting for good (inaudible) for such a long time here. What do you think is going on here? Why is it taking so long to get these orders in what most view to be a secular growth market? Thank you.

了解。最後一個問題，關於無線基礎建設這一端，而且你們也不是唯一遇到這種情況的。感覺我們已經等了很久才等到好的（聽不清）消息。你覺得這裡到底發生了什麼？為什麼在多數人看來屬於長期結構性成長（secular growth）的市場裡，這些訂單卻要花這麼久才進來？謝謝。

Okay, no problem. So my take is certainly there are indications that in the US and in China -- China Mobile specifically -- there are capital investments and build-outs. So there's -- the people who service that base station part of the market benefit from those. I would say -- and I've described in the past, our business is really in the point-to-point radios. Wireless tend to be at the higher frequency bands, which are shorter haul, high margin, high value opportunities.

好的，沒問題。我的看法是，確實有跡象顯示在美國以及中國——特別是中國移動——正在進行資本投資與建置擴張。因此，服務基地台那一塊市場的廠商會從中受益。我會說——我過去也描述過——我們的業務其實主要在點對點（point-to-point）微波／無線電。無線通常是在較高頻段，屬於較短距離（short haul）、高毛利、高價值的機會。

And it's sad to say Europe shows no signs of recovery. If anything, it's looking to be getting worse. We heard that in Europe, the European Commission just put in price caps for mobile roaming within the EU nations, as much as 36% reduction in maximum charge for data usage. My fear, my concern is that that is further going to compress and push out any investments in infrastructure spending in Europe. So it's one of the reasons why we say in general wireless infrastructure, and specifically European point-to-point business, we remain cautious.

而令人遺憾的是，歐洲看不到復甦的跡象；如果有的話，看起來還在惡化。我們聽說在歐洲，歐盟委員會剛對歐盟各國之間的行動漫遊費用設定了價格上限，數據使用的最高收費上限最多下調 36%。我擔心、也關切的是，這將進一步壓縮並延後歐洲在基礎建設支出上的任何投資。因此，這也是我們為什麼會說，整體而言對無線基礎建設、尤其是歐洲點對點業務，我們仍保持審慎。

Very helpful. Thank you.

非常有幫助。謝謝。

(Operator Instructions). Our next question comes from Harsh Kumar with Stephens, Inc. Please go ahead with your question.

（接線員指示）。我們的下一個問題來自 Stephens, Inc. 的 Harsh Kumar。請提出你的問題。

Hey, guys. Thank you. This is Richard in for Harsh. Kind of going back to the optical, are you seeing that predominantly in Asia, or are there other regions that are benefitting from that?

嗨，各位。謝謝。這裡是 Richard 代 Harsh 提問。回到光通訊的話題，你們看到的需求主要是在亞洲嗎？還是其他地區也因此受益？

So, our -- we have nine active customers across all regions. I'd say some of the first guys that turned on to the pre-production volumes tended to be based in Asia, but they service demand globally, and notably in the US. So, the end market demand, I would describe as global. I would say that our sales initially were more skewed towards Asia, but I think as all nine ramp to full production it will be very much a balanced market for us.

我們——在所有地區合計有九家活躍客戶。我會說，最早開始導入試量產（pre-production）出貨量的客戶，多半位於亞洲，但他們服務的是全球需求，尤其是在美國。因此，我會把終端市場需求描述為全球性的。我會說我們初期的銷售確實較偏向亞洲，但我認為當九家客戶都爬坡到全面量產時，對我們而言將會是一個相當均衡的市場。

Great for that color. And then, my second question was kind of going for your gross and op margin target. What are the puts and takes to get there, and are you still confident that those are achievable?

這些補充很有幫助。接著第二個問題是關於你們的毛利率與營業利益率目標。要達到那個目標的推力與拉力（puts and takes）是什麼？你們仍然有信心可以達成嗎？

There's no question. In fact, one of the interesting things, we just went through an analysis and rather than focusing on the low end of the margin portfolio in the Automotive business, when we did the analysis we found that close to a quarter of our revenue today is over 70% gross margins -- 23.5% to 24% of our business is over 70%. Empirical evidence is all of the new products that I saw released this quarter had gross margins in excess of 70%.

毫無疑問。事實上，有件很有意思的事：我們剛做完一個分析，與其把焦點放在汽車業務中毛利率較低的那一端，分析結果顯示，我們目前接近四分之一的營收毛利率超過 70%——我們業務的 23.5% 到 24% 的毛利率高於 70%。實證上，我看到本季推出的所有新產品毛利率都超過 70%。

So the reality is we're investing heavily -- I won't say exclusively because I want to reserve flexibility, but we're really investing in growing that 70% part of the portfolio. We used the 60% drop-through because it's not only that growing. Also, our base business at the lower margins is also growing, and it's really a blend of those two that we come out, at least in the short-term, with 60% drop-through.

所以現實是，我們正在大力投資——我不會說是完全只投資在那裡，因為我想保留彈性——但我們確實是在投資以擴大產品組合中那個 70% 毛利率的部分。我們使用 60% 的落袋率（drop-through），因為不只是那一塊在成長；我們毛利率較低的基礎業務也在成長，短期來看，結果就是兩者混合後大約呈現 60% 的落袋率。

Great. Thank you, and congratulations.

很好。謝謝你，也恭喜。

Oh, thank you very much.

喔，非常謝謝。

Our next question comes from Tore Svanberg with Stifel. Please go ahead with your question.

我們的下一個問題來自 Stifel 的 Tore Svanberg。請提出你的問題。

Hi, this is Erik Rasmussen in for Tore. Nice results on the quarter. I want to get back to the [coms] infrastructure. I know that we -- you kind of addressed it a few times, but you remain cautious on it, not seeing any sort of recovery. But for us, and when it comes to M/A-COM, what sort of milestones should we be looking for as pertains to you and your opportunity in this segment?

嗨，我是 Erik Rasmussen，代 Tore 提問。本季表現不錯。我想回到通訊（[coms]）基礎建設。我知道你們——你已經提過幾次——你們仍對此保持審慎，沒有看到任何復甦跡象。但對我們來說，就 M/A-COM 而言，關於你們在這個領域的機會，我們應該關注哪些里程碑？

Well, our strongest position in wireless infrastructure is in point-to-point radios at the 38 and 42 kilohertz bands -- gigahertz bands, I should say, which are relatively short haul, high data rate, which ends up highly correlated to the European market. There are some build-outs, we understand, in Southeast Asia that will be using the same bands. So it's really -- our business is not exclusively, by any means, but heavily tied to the European -- hold to the European market.

嗯，我們在無線基礎建設中最強的定位，是在 38 與 42 千赫頻段——應該說是 GHz（吉赫）頻段——的點對點無線電，這些屬於相對短距離、高數據速率，因而與歐洲市場高度相關。我們也了解到東南亞有一些建置擴張會使用相同頻段。所以整體而言——我們的業務絕非完全只在那裡，但確實在很大程度上與歐洲市場綁得很緊——與歐洲市場高度相關。

And then, in general, the concerns I would have beyond that is as what was perceived by -- certainly by me as well as many others as a temporary downturn as it goes on to a second year, I start -- especially with news of some of the major OEMs suffering from gross margin compression, I start worrying about the overall health of the recovery, even in the long run. That doesn't mean that we don't take that business very seriously and we don't maximize our share, but it just gives you more reason for caution.

另外，整體來說，我在那之外的擔憂是：原本被認為——至少我以及許多人都認為——只是暫時性的下滑，但當它進入第二年時，尤其又看到一些主要 OEM 的毛利率受到擠壓的消息，我開始擔心即使從長期來看，復甦的整體健康程度。這不代表我們不認真看待這塊業務、也不代表我們不去最大化市占，但這確實讓你有更多理由保持審慎。

Thank you. Maybe just then, staying in Networks, obviously you benefited lately from your success in the 100G opto market. How big is this business today? Can you comment on that? How do you see this business ramping in the coming quarters or years?

謝謝。那麼也許就繼續談網路（Networks）。顯然你們最近受益於在 100G 光通訊市場的成功。這項業務目前有多大？你能否評論一下？你如何看待未來幾季或未來幾年這項業務的爬坡？

Well, I don't mean to be dodging about it, but we don't report what the granularity down the product level. But I would say that we are in the early stages of ramp. We're very much in the pre-production phase. The analyst reports that we see are very consistent with the forecast that we see from our customers. Analysts like [dell-oil] predict a compound growth of 75% for the coming years, kind of in two or three years. So it's a high growth segment -- or I should say end market which is experiencing unquestionably strong capital investment.

我不是想閃躲，但我們不會揭露細到產品層級的數據。不過我會說，我們正處於爬坡的早期階段，仍非常處在試量產（pre-production）階段。我們看到的分析師報告，與我們從客戶那裡看到的預測非常一致。像是 [dell-oil] 這類分析師預測未來幾年（大概兩到三年）複合成長率可達 75%。所以這是一個高成長的細分領域——或者我應該說，是一個正在經歷毫無疑問強勁資本投資的終端市場。

So, there's a lot of juice in it and we're just at the very early stages of what we believe could be a decade-long build-out.

因此，這裡面有很大的成長動能，而我們才剛處於我們相信可能長達十年的建置擴張的非常早期階段。

Great. Thanks for that. And then, you've mentioned in your Defense business you're not really seeing any sort of impact from sequestration, and you haven't just because of the markets that you serve there and your exposure. Do you think, though, in terms of that dynamic, have things bottomed? Are you seeing recovery? I know you announced earlier today you went with Northrop Grumman, which was a nice win, but can you just comment just on what you're seeing?

很好，謝謝。接著你提到在國防業務方面，你們其實沒有看到任何來自預算自動削減（sequestration）的影響，這是因為你們所服務的市場以及你們在那裡的曝險所致。那你認為就這個動態而言，情況是否已經觸底？你有看到復甦嗎？我知道你們今天稍早宣布與 Northrop Grumman 的合作，是個不錯的勝利，但你能否評論一下你們所看到的狀況？

I have to be careful in using the correct words. We see no impact from sequestration. That said, given what we've seen our peers indicate in terms of the effect of sequestration, I suspect there has been some effect of sequestration on our business. We just can't see it. So, maybe without sequestration we would have grown north of 9%, whereas in the presence of sequestration we grew only 9%.

我必須謹慎使用正確的措辭。我們沒有看到撥款自動削減（sequestration）的影響。話雖如此，考量到我們看到同業所指出的撥款自動削減影響，我懷疑它對我們的業務確實有一些影響，只是我們看不出來。所以，也許如果沒有撥款自動削減，我們的成長會超過9%，而在有撥款自動削減的情況下，我們只成長了9%。

It's difficult for us to see it because we have a very diffuse business through many, many customers in that space. We do not have highly concentrated business in specific MIMIC platforms like we will have in the future with Northrop Grumman. So that's good news and bad news. The bad news is we don't have that large revenue today; the good news is we're not exposed as others might be to sequestration.

我們之所以難以看出來，是因為我們在那個領域的業務分散在非常、非常多的客戶之間。我們不像未來與諾斯洛普・格魯曼（Northrop Grumman）合作時那樣，在特定的 MIMIC 平台上有高度集中的業務。所以這既是好消息也是壞消息。壞消息是我們目前沒有那麼大的營收；好消息是我們不像其他公司那樣可能暴露於撥款自動削減的風險。

Really, what we saw was a very high degree of turns business and very healthy demand for us, selling through direct and through distribution. And beyond that, it's hard to really judge the end market health, to be honest.

實際上，我們看到的是非常高比例的短週期（turns）業務，以及非常健康的需求，透過直銷與經銷通路都賣得很好。除此之外，老實說，要真正判斷終端市場的健康狀況其實很困難。

Okay, thanks. And maybe if I could squeeze one more in, for Conrad. The OpEx went up considerably, specifically SG&A. What -- can you just -- what drove this and what are the expectations for OpEx in future periods? Thank you.

好的，謝謝。也許我可以再塞一個問題給 Conrad。營業費用（OpEx）大幅上升，特別是 SG&A。這是——你能不能——是什麼驅動了這個變化？以及未來期間對 OpEx 的預期是什麼？謝謝。

Sure, certainly. The OpEx increase were driven -- some of them were sales-related. Sales were up, selling costs were up, increased costs for outside professional services as we prepare for SOX [compliancy], some tax work, and some seasonality in marketing communications with regard to trade shows that we -- a major trade show we participated in this quarter.

當然，沒問題。OpEx 的增加主要由幾個因素驅動——其中一些與銷售相關。銷售增加、銷售成本上升；另外，為了準備 SOX［合規］，外部專業服務費用增加，還有一些稅務工作，以及行銷傳播方面的季節性因素，與我們本季參加的一個大型展會有關。

So, SG&A ran at 13.5%, compared to 12.9% in the prior quarter. And in total, the OpEx of [25.3%] of revenue was the same this quarter as in the prior, which is well within our OpEx model. So our target is 25%, and this could vary from 25% to 26% in any given quarter. So that's the color I'd like to offer.

因此，SG&A 佔比為 13.5%，相較上一季的 12.9%。而整體而言，本季 OpEx 佔營收的［25.3%］，與上一季相同，完全在我們的 OpEx 模型範圍內。我們的目標是 25%，在任何一季可能會在 25% 到 26% 之間波動。以上就是我想補充的說明。

Thank you very much.

非常感謝。

Our next question comes from Quinn Bolton with Needham & Company. Please go ahead with your question.

下一個問題來自 Needham & Company 的 Quinn Bolton。請提出您的問題。

Hi, John and Conrad. Congratulations on the results and guidance. I apologize, I missed part of the prepared comments. But just first wanted to ask, last quarter or two I think you'd seen sort of the turn in the catalog business and it certainly seems like that is playing out in the revenue line. Was just wondering if you still have similar visibility in that broader catalog business heading into the September quarter that you did, say, a quarter ago.

嗨，John 和 Conrad。恭喜你們的業績與財測指引。抱歉，我錯過了部分事先準備的發言。不過我首先想問的是，過去一兩季你們似乎看到型錄（catalog）業務的短週期（turn）回升，而現在看起來確實反映在營收上。我想了解的是，進入九月季度時，你們對更廣泛的型錄業務是否仍像一季前那樣有類似的能見度？

Yes. So the turns business was -- in the prepared remarks -- so yes, we indicated that's where the strength came and that's what really drove us towards the upper end of our guidance. And that has continued into this quarter. It's the reason why we're guiding for growth in the fourth quarter. The one caution I would give is the shape of the demand is high turns business, short lead times, so it's hard to kind of extrapolate that into the first quarter and make any general comments about overall market recovery. The visibility is low, so we remain cautious on a go-forward basis. But certainly, the level of firm book, the order book we have, is consistent with the growth that we put into the guidance.

是的。關於短週期（turns）業務——在事先準備的發言中——是的，我們指出強勁動能來自那裡，也正是它推動我們走向指引區間的上緣。而這個趨勢延續到本季。這也是我們為第四季提供成長指引的原因。我唯一要提醒的是，需求的型態是高比例短週期業務、交期很短，因此很難把它外推到第一季，並對整體市場復甦做出一般性的評論。能見度偏低，所以我們對後續仍保持謹慎。不過，從我們目前的確定訂單量、訂單簿來看，與我們在指引中納入的成長是相符的。

Okay, great. And then, just on the Northrop Grumman and some of the other relationships you've announced recently, are you seeing just a greater use in partnerships or perhaps a trend towards outsourcing potentially as an effect of sequestration, or do you think that these types of transactions would have happened regardless of what's going on with the Defense spend?

好的，很棒。接著，關於諾斯洛普・格魯曼以及你們最近宣布的其他合作關係，你們是否看到更多透過合作夥伴的方式，或是可能因撥款自動削減而出現外包趨勢？還是你認為，無論國防支出發生什麼狀況，這類交易本來就會發生？

Yes. I would only say ELTA is relatively immune to the sequestration issue. But certainly, Northrop Grumman would be exposed to it. And actually, sequestration has had -- or any overall market trends I don't think had any impacts, good or bad, on this particular breakthrough for us.

是的。我只能說 ELTA 相對不受撥款自動削減議題影響。但諾斯洛普・格魯曼確實會暴露在其中。實際上，撥款自動削減——或任何整體市場趨勢——我認為對我們這次的突破並沒有帶來任何正面或負面的影響。

The background there is Northrop was looking to move to a much more balanced supply chain. They were overexposed in terms of their previous vendor base and they looked around and I think if you spoke to them they would say M/A-COM was the obvious choice. We have domestic control over our production. We have decade-long history and decade-long legs to our production, which is exactly the kind of supply model they need. We have the technology base that they needed and we had the design capability and we had the -- finally, the ability to invest in MIMICs, where during the Tyco years M/A-COM just took it -- Tyco took M/A-COM out of the game.

背景是這樣：諾斯洛普希望把供應鏈調整得更均衡。他們在先前的供應商基礎上曝險過高，因此四處尋找，我想如果你去問他們，他們會說 M/A-COM 是顯而易見的選擇。我們對生產具有國內（domestic）控制能力。我們有長達十年的歷史，以及可延續十年的生產生命週期，這正是他們所需要的供應模式。我們具備他們需要的技術基礎，也有設計能力，最後還具備投資 MIMIC 的能力；而在 Tyco 年代，M/A-COM 基本上被——Tyco 把 M/A-COM 踢出了賽局。

So now that we're back in the game, this is arguably just a rebalancing to share that we otherwise could have and should have had. A lot of great execution on our engineering side. I don't want to take anything away from all the hard work and success. In fact, all of the commitment on the Northrop Grumman side helped make it a success as well, but I think it had a lot more to do with supply chain dynamics than anything else.

所以現在我們回到賽局中，這可以說只是把原本我們本來就能、也應該能拿到的份額重新平衡回來。我們工程團隊的執行非常出色。我不想抹煞大家所有的努力與成果。事實上，諾斯洛普・格魯曼那邊的投入與承諾也讓這次成功，但我認為這更多與供應鏈動態有關，而不是其他因素。

Great. And then, just lastly, on the optical business. I know your existing products and design wins are mostly targeted to the long haul or submarine markets, but your data center is probably going to be a pretty big area over the next few years. I was just wondering, are you looking at technologies, whether it's parallel receivers or laser drivers, that could target some of the data center applications as data center moves to 100 gig?

很好。最後一個問題，關於光學（optical）業務。我知道你們現有產品與設計導入（design wins）多半鎖定長途（long haul）或海底（submarine）市場，但資料中心在未來幾年可能會是很大的領域。我想問的是，隨著資料中心走向 100G，你們是否在評估一些技術，例如並行接收器（parallel receivers）或雷射驅動器（laser drivers），以切入部分資料中心應用？

Yes. I don't want to sound facetious here, but we're looking at everything in 100G and moving not just with organic growth and broadening our footprint in organic approaches as well. As I said, if you were to ask me what my [Pareto] is of priorities for M&A activity, I would say gallium nitride technology leadership and 100G leadership would be the two that stand out bar none. But I think the market's going to happen quicker than we can really stay on top of organically, so it's a logical thing for us to be looking around at acquisition opportunities.

是的。我不想聽起來像在開玩笑，但我們在 100G 方面什麼都在看，而且不只是靠內生成長，也會透過內生方式擴大我們的布局。正如我說過的，如果你問我在併購（M&A）活動上的優先順序［Pareto］是什麼，我會說，氮化鎵（gallium nitride）技術領導地位與 100G 領導地位是兩個最突出的重點，沒有其他能相比。不過我認為市場發展會比我們單靠內生方式能跟上的速度更快，所以對我們而言，尋找收購機會是合乎邏輯的。

Okay, great. Thank you.

好的，很棒。謝謝。

Our next question comes from Steve Smigie of Raymond James. Please go ahead with your question.

下一個問題來自 Raymond James 的 Steve Smigie。請提出您的問題。

Great, thanks a lot. Just following up on the Northrop win, as you said, you had [addition] to good engineering, some supply chain strength there, and Northrop was looking to diversify. So, can you talk about who it was that you were able to beat there, to give some sense to the competitive environment? And could you talk about maybe how many people you had to beat out there to secure that win, just some more competitive color?

很好，謝謝。接續諾斯洛普這個案子，如你所說，你們除了優秀的工程能力之外，也有一些供應鏈方面的優勢，而諾斯洛普也希望供應來源多元化。所以，你能談談你們擊敗了哪些對手，讓我們對競爭環境有些概念嗎？以及你能否談談為了拿下這個案子，你們大概需要打敗多少家競爭者，提供一些更多的競爭面色彩？

Well, I think -- I'll refrain from mentioning the competitor by name. But the one that I'd point out is it was a relatively [monopolous big] supply condition, and so I'll leave it to you to discover who it is.

嗯，我想——我就不點名競爭對手了。但我想指出的是，當時的供應狀況相對是［近乎壟斷的大型］供應格局，所以我就留給你去推敲是誰。

Okay, fair enough. I was just trying to see if it was like multiple people that you were taking it from -- sounds like one major player. And then, on the dynamic between investing at the high end but also trying to get the legacy products going again, could you talk a little bit about how you make the decisions to allocate resources there?

好的，這樣也公平。我只是想確認是不是從多家手上拿到——聽起來像是一個主要玩家。接著，關於一方面在高階端投資、另一方面也想讓既有（legacy）產品重新動起來之間的動態，你能否談談你們如何做資源配置決策？

And I guess a little bit on the low end, what's different that you're able to drive more singles and doubles than you used to? Is it more showing up at conferences, committing more R&D resources to your clients, committing more capacity? What's driving the low end and how do you balance those resources?

另外在低階端，你們現在能比以前推動更多「一壘安打、二壘安打」（singles and doubles）的原因是什麼？是更多出席研討會、對客戶投入更多研發資源、投入更多產能承諾嗎？是什麼在驅動低階端？你們又如何在這些資源之間取得平衡？

When I talked about our [poor] catalog business, like a lot of companies [with strikes] in broad-based portfolios, it's actually in many cases the older vintages that are the highest margin and highest opportunities. And it's not about new products. Yes, there's some mix of new products, but it's largely how you engage customers both commercially and technically, how you service those customers commercially and technically. And when the call comes in for the order or the call comes in for pricing or technical support, you have to be on top of it with a very high capture rate.

當我談到我們的[較差]型錄業務時，像許多公司在廣泛型產品組合中[有罷工]的情況一樣，實際上在很多情況下，較早期的產品批次反而是毛利最高、機會最大的。這並不是關於新產品。是的，會有一些新產品的組合變化，但更主要的是你如何在商務與技術層面與客戶互動、如何在商務與技術層面服務這些客戶。當客戶來電下單，或來電詢價，或尋求技術支援時，你必須掌握全局並維持非常高的攔截／成交率。

And so I would say in terms of growing that base business, every incremental dollar is a nice contribution. And whether it's 70% margin or 50% margin or 60%, it doesn't matter, it's nice and it contributes to EPS growth.

因此我會說，就成長這個基礎業務而言，每增加一美元都是很好的貢獻。不論是70%毛利、50%毛利或60%，其實都無所謂，這很不錯，而且會對每股盈餘（EPS）成長有所貢獻。

It's an entirely different thing to invest heavily in low margin products, and that we avoid. This is where we focus our energy, on 70% plus margin, not exclusively because there are certainly situations where --for in a particular Networks market, for instance, there may be customers who, from a supply chain standpoint, want you to take a share of modest margin business in return for a good, healthy share of the high margin business. So the way I look at it is we don't invest one product at a time, we invest one business at a time. But in general, we really reserve our heavy R&D dollars for 70% plus margin business.

而大舉投資於低毛利產品則完全是另一回事，我們會避免這麼做。我們把精力放在70%以上毛利的業務上，但也不是絕對，因為確實有一些情況——例如在某個特定的網路市場中，可能有客戶從供應鏈角度希望你承接一部分中等毛利的業務，以換取你在高毛利業務中取得良好且健康的份額。所以我的看法是，我們不是一次投資一個產品，而是一次投資一個事業。但總體而言，我們確實把大量研發（R&D）資金保留給70%以上毛利的業務。

Okay, that's very helpful. I appreciate that. The last question is on military-related businesses. Obviously, there's been sequestration and yet it seems like certain electronics firms have done reasonably well considering. And I was hoping you could talk a little bit about your aspirations there. If electronic content is increasing, how do you get increasingly involved with that? And how does it make sense that the electronics firms are doing so well here despite the sequestration cuts? Thanks.

好的，這非常有幫助，謝謝你。最後一個問題是關於軍事相關業務。顯然，已經有（預算）自動減支（sequestration），但看起來某些電子公司在這種情況下仍表現得相當不錯。我希望你能談談你們在這方面的企圖與目標。如果電子含量正在提高，你們要如何更深入參與？另外，儘管有自動減支的削減，為什麼電子公司在這裡仍能做得這麼好？謝謝。

In general, if you're talking about companies that are fully penetrated at maximum share in a very mature state, the overall impact of sequestration has a very real impact, which is unavoidable. There's no place to run and hide. We are not in that situation. During the Tyco years, back five years ago and 15 years ago, the Company did not invest in sustaining what is our natural share in that military air space, defense market. Consequently, only 10% of our sales today are in defense-related business. And I would say a more natural condition probably would be more like a third of our business, so there's --.

一般來說，如果你談的是那些在非常成熟的狀態下、已經完全滲透並取得最大市占的公司，自動減支的整體影響確實非常真實且無可避免，沒有地方可以躲。我們不是那種情況。在Tyco時期，回溯五年前以及十五年前，公司並沒有投資以維持我們在軍用航空、國防市場中本來應有的自然市占。因此，如今我們只有10%的銷售來自國防相關業務。我會說，更自然的狀態可能應該接近我們業務的三分之一，所以——。

And Northrop is a good example. The amount of business we do relative to their purchase level is historically -- recently anemic compared to what we can really establish as we establish that MIMIC business and become appropriately a good, strategic supplier with our fair share of business.

Northrop就是一個很好的例子。我們相對於他們採購規模所做的業務量，從歷史上看——最近更是顯得疲弱，遠低於我們在建立MIMIC業務、並成為合適的優質策略供應商、取得我們應有的公平份額後，真正可以達到的水準。

The other thing I'd point out is sequestration is very real. In many cases, more conventional parts of the military are impacted. But I can tell you, whether it's secure broadband communication with frequency hopping, battlefield communications is front-and-center. That's going to happen under any condition. UAVs, a very healthy market, those need to communicate, they need radar systems.

我還想指出，自動減支確實存在。在許多情況下，軍方較傳統的部分會受到影響。但我可以告訴你，不論是具備跳頻的安全寬頻通訊、戰場通訊都是最核心的重點；在任何情況下這些都會發生。無人機（UAV）是一個非常健康的市場，它們需要通訊，也需要雷達系統。

So there's programs which are new, which coming from a relatively small share, that we can ride the wave of these new programs and end up with a more appropriate share for M/A-COM supplying the defense industry -- the US defense industry. We can drive a lot of growth for this Company in the presence of fairly onerous sequestration.

因此，有一些是新的計畫；在我們原本份額相對較小的基礎上，我們可以順勢搭上這些新計畫的浪潮，最終讓M/A-COM在供應國防產業——美國國防產業方面，取得更合適的份額。即使面對相當嚴苛的自動減支，我們仍能為公司帶來大量成長。

Okay, great. Thanks very much.

好的，非常好。非常感謝。

Our next question -- sorry. Our next question comes from Harlan Sur with JPMorgan. Please go ahead with your question.

我們的下一個問題——抱歉。我們的下一個問題來自摩根大通（JPMorgan）的Harlan Sur。請提出你的問題。

Thanks for taking my follow-up. And just to follow-on the A&D segment, obviously, I think you've got pretty good visibility as it relates to sort of some of these big program wins. Maybe not as good visibility on the timing of those ramps and, as you mentioned, you've got some [keen new] relationships on the defense side. But looking out over the next 18 to 24 months as some of these programs start to fire, are they more Aerospace-related? You've done well with commercial radar and satellites. Are they going to be more Defense-related? Do you still see that sort of two-thirds Aerospace, one-third Defense mix holding or changing over the next couple of years? It seems like from your prior comments you think that maybe the Defense business might become a bigger part of the mix.

謝謝讓我追問。延續航太與國防（A&D）部門的話題，顯然我認為你們對於一些大型專案得標的能見度相當不錯。或許對於這些放量（ramp）的時點能見度沒那麼好；而且如你所提，你們在國防端也建立了一些[敏銳的新]關係。但往後看18到24個月，當其中一些專案開始啟動時，它們會更偏向航太相關嗎？你們在商用雷達與衛星方面做得很好。它們會更偏向國防相關嗎？你仍然認為未來幾年維持約三分之二航太、三分之一國防的組合，還是會改變？從你先前的評論看起來，你認為國防業務可能會在組合中占比更大。

I would say both are very healthy growth areas. The commercial Aerospace piece, whether it's the satellite communications or air traffic control, weather radar, you're talking about entirely new deployments of air traffic control radar systems. We are using technologies and we're extraordinarily well positioned with our new gallium nitride power transistors, so we can really benefit from that and drive very, very nice growth on top of our historical run rates.

我會說兩者都是非常健康的成長領域。商用航太部分，不論是衛星通訊或空中交通管制、氣象雷達，你談的是空中交通管制雷達系統的全新部署。我們正在使用相關技術，並且憑藉我們新的氮化鎵（GaN）功率電晶體而具備極佳的定位，因此我們確實能從中受益，並在我們歷史性的既有運行水準之上，帶動非常、非常可觀的成長。

That said, on the Defense side, as I was just describing, relative to our natural share of that market, we are dramatically underpenetrated. I can't speak to the details of the program wins and so on, but you're talking about transformative levels of revenue and gross margin contribution relative to our current size.

話雖如此，在國防端，如我剛才所描述，相對於我們在該市場本來應有的自然份額，我們的滲透率明顯不足。我無法談及專案得標等細節，但你談的是相對於我們目前規模而言，具有變革性等級的營收與毛利貢獻。

Great. Thanks, John.

很好。謝謝你，John。

You're welcome.

不客氣。

I'm not showing any other questions in the queue at this time. I'd like to turn it back over to Mr. John Croteau for closing comments.

目前我這邊的提問佇列中沒有其他問題。我想把時間交回給John Croteau先生做結語。

Great. In summary, you're beginning to see our growth strategy take shape near-term. Our focus remains on taking market share, which has so far yielded three quarters of sequential growth despite a challenging macroeconomic environment. Medium-term, we believe our growth will be fueled by new strategic customers and networks in Aerospace and Defense such as Northrop Grumman and ELTA as they ramp into production. Long-term, we believe M/A-COM is positioned to reshape and outperform the industry with the first sustainable supply chain for gallium nitride technology.

很好。總結來說，你們開始在短期內看到我們的成長策略逐步成形。我們的重點仍是取得市占；截至目前，即使在具挑戰性的總體經濟環境下，我們仍連續三個季度實現季對季成長。中期而言，我們相信成長將由航太與國防領域的新策略客戶與網路所驅動，例如Northrop Grumman與ELTA，隨著它們逐步放量進入量產。長期而言，我們相信M/A-COM已具備條件，憑藉首個可持續的氮化鎵技術供應鏈，重塑並超越整個產業。

Conrad and I plan to be at the Morgan Stanley conference on August 21 in Boston. If you plan to attend this conference, we welcome the opportunity to meet with you. And I want to thank everyone again today for joining us on today's call and I look forward to reporting our continued progress next quarter. Operator, you may disconnect the call.

Conrad和我計畫於8月21日在波士頓參加摩根士丹利（Morgan Stanley）研討會。如果你計畫出席，我們歡迎有機會與你會面。也再次感謝各位今天參與本次電話會議，我期待在下個季度向各位報告我們持續的進展。接線員，你可以中斷通話。

Thank you. Ladies and gentlemen, thank you for your participation in today's conference. This does conclude your conference; you may now disconnect. Good day.

謝謝。各位女士、先生，感謝各位參與今天的會議。本次電話會議到此結束；你們現在可以掛線。祝各位有美好的一天。