MACOM Technology Solutions Holdings, Inc. (MTSI) 2014 Q2 法說會逐字稿

Good afternoon, and welcome to M/A-COM Technology Solutions' second-fiscal-quarter 2014 financial results conference call.

各位下午好，歡迎參加 M/A-COM Technology Solutions 2014 會計年度第二季財務業績電話會議。

At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded today, Tuesday April 29, 2014.

此刻，所有與會者皆處於僅收聽模式。於今日電話會議結束時，將提供問答環節的指示。提醒各位，本次會議正在錄音，時間為 2014 年 4 月 29 日（星期二）。

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

現在我想將電話會議交給 Shelton Group（M/A-COM 的投資人關係代理機構）的 Leanne Sievers。Leanne，請開始。

Good afternoon, and welcome to M/A-COM Technology Solutions' second-quarter 2014 earnings conference call. I'm Leanne Sievers, Executive Vice President of Shelton Group, M/A-COM's investor-relation firm.

各位下午好，歡迎參加 M/A-COM Technology Solutions 2014 年第二季財報電話會議。我是 Leanne Sievers，Shelton Group 執行副總裁，亦為 M/A-COM 的投資人關係公司。

With us today are M/A-COM's President and Chief Executive Officer, John Croteau; and Senior Vice President and Chief Financial Officer, Bob McMullan.

今天與會者包括 M/A-COM 總裁兼執行長 John Croteau，以及資深副總裁兼財務長 Bob McMullan。

If you've not yet received a copy of the press release, you can access a copy on M/A-COM's website at www.macom.com under the investor-relations section.

若您尚未收到新聞稿副本，可至 M/A-COM 網站 www.macom.com 的投資人關係（investor-relations）專區取得。

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

在我將電話交給 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提出額外的前瞻性陳述。

Therefore, the Company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today.

因此，公司主張適用《1995 年私人證券訴訟改革法案》（Private Securities Litigation Reform Act of 1995）中所載之前瞻性陳述「安全港」保護。實際結果可能與今日討論內容存在重大差異。

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 December 5, 2013.

因此，我們請您參閱公司向美國證券交易委員會（Securities and Exchange Commission）提交之文件中，對可能導致上述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 2013 年 12 月 5 日提交的 Form 10-K 年度報告。

In addition, any projections as to the Company's future performance represent Management's estimates as of today, April 29, 2014. M/A-COM assumes no obligation to update these projections in the future as market conditions may or may not change.

此外，任何關於公司未來表現的預測，均代表管理層截至今日（2014 年 4 月 29 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.

另外，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。

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-relation's section at M/A-COM's website.

這些財務衡量指標以及 GAAP 與非 GAAP 結果之調節表，已載於公司新聞稿及相關的 Form 8-K 當期報告中；該報告已於今日向美國證券交易委員會提交，並可於 M/A-COM 網站的投資人關係（investor-relations）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-relation's section at M/A-COM's website.

若各位目前無法收聽完整電話會議，將提供網路直播回放錄音，於 M/A-COM 網站投資人關係（investor-relations）專區保留 30 天。

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

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

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

謝謝你，Leanne。各位好，感謝各位今天加入我們。

I'll begin today's call with an overview of our second-quarter results and then turn the call over to our Chief Financial Officer, Bob McMullan.

我將先概述我們第二季的業績，接著把電話交給我們的財務長 Bob McMullan。

Bob will overview our financial performance in further detail. I'll then conclude today's prepared comments by providing an update on the progress we've made with integrating the Mindspeed acquisition and our guidance for the third fiscal quarter before opening the call for questions.

Bob 將更詳細地說明我們的財務表現。之後我將以更新我們在整合 Mindspeed 收購案方面的進展，以及提供第三會計季的財測作為結語，然後開放提問。

Diving straight into the results, revenue for the second quarter was $107.5 million. Non-GAAP gross margin was 49.3%, with non-GAAP net income up $15.2 million, or $0.32 earnings per diluted share.

直接進入業績部分，第二季營收為 1.075 億美元。非 GAAP 毛利率為 49.3%，非 GAAP 淨利為 1,520 萬美元，或稀釋後每股盈餘 0.32 美元。

During fiscal Q2, revenue and earnings per share for the M/A-COM businesses came in above the high end of guidance, with non-GAAP gross margin improving 270 basis points from the prior quarter, rounding out another quarter of solid execution by the M/A-COM team.

在會計年度第二季，M/A-COM 各業務的營收與每股盈餘均高於財測區間上緣；非 GAAP 毛利率較前一季提升 270 個基點，展現 M/A-COM 團隊再度一季的穩健執行力。

Looking at our results by end market, Networks was up strong sequentially. This growth was slightly offset by softness in Aerospace and Defense, primarily due to program timing with a few customers.

按終端市場來看，網路（Networks）業務較前一季強勁成長。此成長部分被航太與國防（Aerospace and Defense）的疲弱所抵銷，主要原因是少數客戶的專案時程安排。

Multi-market was effectively flat, and Automotive performed as expected, down slightly based on what we believe are normal fluctuations in production at [Ford].

多元市場（Multi-market）基本持平；汽車（Automotive）表現符合預期，略為下滑，我們認為這是 [Ford] 生產的正常波動所致。

Let me now turn it over to Bob to review our fiscal first-quarter financials in more detail.

接下來我把時間交給 Bob，請他更詳細地回顧我們會計年度第一季的財務狀況。

Thank you, John, and good afternoon.

謝謝你，John，各位下午好。

During the course of my comments and John's, all income-statement amounts and percentages will be discussed on a non-GAAP basis. The non-GAAP measures discussed today exclude retroactive adjustments related to the Nitronex acquisition discussed in our press release. Nitronex' operating results are included in our non-GAAP results from the date of acquisition.

在我與 John 的評論過程中，所有損益表金額與百分比將以非 GAAP 基礎討論。今日討論的非 GAAP 指標排除我們新聞稿中所述與 Nitronex 收購案相關的追溯性調整。Nitronex 的營運結果自收購日起即納入我們的非 GAAP 結果。

Management believes non-GAAP information enhances the understanding of our core operating performance, and a reconciliation of each non-GAAP amount to the most comparable GAAP measure is included in today's earnings press release.

管理層認為非 GAAP 資訊有助於加深對我們核心營運表現的理解；各項非 GAAP 金額與最可比 GAAP 指標之調節，已包含於今日的財報新聞稿中。

Our fiscal second quarter was the first full quarter of the inclusion of Mindspeed's result following the closing of the acquisition on December 18, 2013.

我們的會計年度第二季，是在 2013 年 12 月 18 日完成收購交割後，首次完整一季納入 Mindspeed 的業績。

Revenue was $107.5 million, representing a sequential increase of 28.7% compared to $83.5 million in the prior quarter and an increase of 38.1% compared to $77.8 million in the fiscal second quarter of 2013. On a pro-forma basis, revenue increased sequentially at 2.8%

營收為 1.075 億美元，較前一季的 8,350 萬美元季增 28.7%，並較 2013 會計年度第二季的 7,780 萬美元年增 38.1%。以備考（pro-forma）基礎計算，營收季增 2.8%。

Revenue by end markets were the following -- Carrier Networks, $38 million, 35%; Enterprise Networks, $12.5 million, 12%; A&D $19.8 million, 18%; Auto, $20.1 million and 19%; Multi-markets, $17.1 million and 16% of total revenue. Domestic revenue represented 47%, and international, 53%.

按終端市場劃分之營收如下——電信營運商網路（Carrier Networks）3,800 萬美元，占 35%；企業網路（Enterprise Networks）1,250 萬美元，占 12%；航太與國防（A&D）1,980 萬美元，占 18%；汽車（Auto）2,010 萬美元，占 19%；多元市場（Multi-markets）1,710 萬美元，占總營收 16%。國內營收占 47%，國際營收占 53%。

Our largest end customer continues be Ford, representing approximately 18.7% of the total revenue. No other end customer represents more than 4% of total revenues.

我們最大的終端客戶仍為 Ford，約占總營收的 18.7%。其他任何終端客戶占總營收均不超過 4%。

Gross profits in the fiscal second quarter was $53 million, or 49.3% of revenue. This compares to $38.9 million and 46.6% of revenue in the prior quarter and $34.6 million and 44.5% in the prior year's fiscal quarter.

會計年度第二季毛利為 5,300 萬美元，或占營收 49.3%。相較之下，前一季為 3,890 萬美元、占營收 46.6%；去年同期會計季度為 3,460 萬美元、占 44.5%。

Gross margins continue to improve quarter over quarter due to higher margin product mix of revenue, including the addition of Mindspeed's generally higher-gross-margin products.

由於營收中較高毛利產品組合占比提升（包括加入 Mindspeed 一般而言毛利率較高的產品），毛利率持續逐季改善。

Total operating expenses were $31.6 million, compared to $22.7 million in the prior quarter, and $19.7 million in the prior year's fiscal quarter.

營業費用總額為 3,160 萬美元，前一季為 2,270 萬美元，去年同期會計季度為 1,970 萬美元。

Specifically, R&D expense for the fiscal second quarter was $17 million. This compares to expense of $10.9 million in the prior quarter and $9.7 million in the fiscal second quarter of 2013.

具體而言，會計年度第二季研發（R&D）費用為 1,700 萬美元。相較之下，前一季為 1,090 萬美元，2013 會計年度第二季為 970 萬美元。

R&D as a percentage of revenue represented 15.8% in the fiscal second quarter compared to 13% in the previous quarter and 12.4% in the prior year's fiscal quarter.

研發費用占營收比重於會計年度第二季為 15.8%，相較前一季為 13%，去年同期會計季度為 12.4%。

The sequential and year-over-year increase in R&D was a result of continued investment in high-gross-margin, new-product development and the inclusion of Mindspeed and Nitronex investments.

研發費用的季增與年增，主要源於持續投資於高毛利新產品開發，以及納入 Mindspeed 與 Nitronex 的投資。

And selling and general administrative expenses were $14.6 million compared to $11.8 million in the previous quarter and $10.1 million in the prior year's fiscal quarter.

銷售、一般及行政（selling and general administrative）費用為 1,460 萬美元，相較前一季為 1,180 萬美元，去年同期會計季度為 1,010 萬美元。

SG&A as a percentage of revenue represented 13.6% in the fiscal second quarter compared to 14.2% in the previous quarter and 12.9% in the prior year's fiscal quarter.

SG&A 占營收比重於會計年度第二季為 13.6%，相較前一季為 14.2%，去年同期會計季度為 12.9%。

The increase in dollars is generally related to the broader sales organization, while the decrease in percentage of revenue is greater leverage of G&A.

金額增加通常與更廣泛的銷售組織相關；而占營收比重下降則反映一般及行政（G&A）費用的槓桿效益提升。

Income from operations was $21.4 million, or 19.9% of revenue. This compares to $16.2 million, or 19.4% of revenue, in the prior quarter, and $14.9 million and 19% of revenue in the prior year's fiscal quarter.

營業利益為 2,140 萬美元，或占營收 19.9%。相較之下，前一季為 1,620 萬美元、占營收 19.4%；去年同期會計季度為 1,490 萬美元、占營收 19%。

EBITDA was $24.8 million, up from $19.2 million and $17.6 million, respectively.

EBITDA 為 2,480 萬美元，分別高於 1,920 萬美元及 1,760 萬美元。

For income taxes, our effective income tax rate for the fiscal second quarter was 23.5%, indicative of the continued benefits related to utilizing net-operating-loss carry-forwards and other business strategies.

就所得稅而言，我們會計年度第二季的有效所得稅率為 23.5%，顯示持續受益於運用淨營運虧損結轉扣抵及其他商業策略。

Our fiscal second-quarter net income $15.2 million, or $0.32 per diluted share, compared to fiscal first-quarter net income of $12.1 million, or $0.25 per diluted share, and net income of $11.7 million, or $0.24 per diluted share, in the prior year's fiscal quarter. Share count was $48.2 million, $48.6 million, and $48 million, respectively.

我們會計年度第二季淨利為 1,520 萬美元，或每股稀釋後盈餘 0.32 美元；相較之下，會計年度第一季淨利為 1,210 萬美元，或每股稀釋後盈餘 0.25 美元，而去年同期會計季度淨利為 1,170 萬美元，或每股稀釋後盈餘 0.24 美元。股數分別為 4,820 萬股、4,860 萬股及 4,800 萬股。

Net cash from operating activities was negative for the first fiscal half by $5.2 million. Approximately $18 million represents transaction expenses and restructuring payments that are non-recurring and behind us.

上半個會計年度來自營運活動的淨現金流為負 520 萬美元。其中約 1,800 萬美元為交易費用與重整付款，屬一次性且已告一段落。

Capital expenditures in the fiscal second quarter were $3.5 million, or 3.3% of revenue, compared to $2.1 million, or 2.6% of revenue in the fiscal first quarter, and $3.1 million, or 4% of revenue, in the fiscal second quarter of 2013.

會計年度第二季資本支出為 350 萬美元，約占營收 3.3%；相較之下，會計年度第一季為 210 萬美元，約占營收 2.6%，而 2013 年會計年度第二季為 310 萬美元，約占營收 4%。

Depreciation expense on property and equipment for the fiscal second quarter was approximately $3.4 million, compared to $2.9 million and $2.6 million, respectively.

會計年度第二季不動產及設備折舊費用約為 340 萬美元，分別相較為 290 萬美元及 260 萬美元。

Turning to the balance sheet. As of April 4, 2014, our cash and cash equivalents were approximately $63 million. During the fiscal quarter, we used $25 million of our revolving-credit facility for the acquisition of Nitronex, increasing outstanding long-term debt to $245 million.

接著看資產負債表。截至 2014 年 4 月 4 日，我們的現金及約當現金約為 6,300 萬美元。本會計季度期間，我們動用循環信用額度 2,500 萬美元用於收購 Nitronex，使未償還長期負債增加至 2.45 億美元。

Accounts receivable of $67.9 million compares to $66.5 million at the end of the prior fiscal quarter and $49.6 million at the end of the year-ago quarter.

應收帳款為 6,790 萬美元，較前一會計季度期末的 6,650 萬美元，以及去年同期季度期末的 4,960 萬美元為高。

Day sales outstanding were up marginally, 57 days, compared to 56 days at the end of the prior fiscal quarter and 58 days at the end of the year-ago quarter.

應收帳款週轉天數（DSO）小幅上升至 57 天，較前一會計季度期末的 56 天為高，較去年同期季度期末的 58 天為低。

Inventory was $71.9 million, compared to $88.7 million in the prior fiscal quarter, $57.2 million in the year-ago quarter. Limiting the fair-market value step-up reduction, inventory turns were 3 times, compared to 3.1 times in the prior fiscal quarter and 3 times in the year-ago quarter.

存貨為 7,190 萬美元，相較前一會計季度的 8,870 萬美元，以及去年同期季度的 5,720 萬美元。若排除公允市價調增（step-up）攤減的影響，存貨週轉率為 3 次，相較前一會計季度為 3.1 次，去年同期季度為 3 次。

Moving from our results of the fiscal quarter, M/A-COM is in the final stages of refinancing its bank revolving-credit facility. We expect to close this week.

從本會計季度的業績延伸，M/A-COM 正處於為其銀行循環信用額度進行再融資的最後階段。我們預期將於本週完成交割。

The new facility is $450 million, comprising a $350-million, 7-year, term-B secured loan and $100-million revolving-credit agreement. Initial draw-down will be $350 million.

新的融資額度為 4.5 億美元，包括 3.5 億美元、7 年期的 B 類定期擔保貸款，以及 1 億美元的循環信用協議。初始提用金額將為 3.5 億美元。

This refinancing has many positive implications for M/A-COM, including less-restrictive financial covenants; extended principal maturity; initial access to institutional lenders and credit-agency ratings; and importantly, greater available capital for future acquisitions.

此項再融資對 M/A-COM 具有多項正面意涵，包括較不嚴格的財務契約條款；延長本金到期日；初次取得機構型放款人及信用評等機構評級的管道；且更重要的是，為未來併購提供更充裕的可用資本。

This is a significant capital transaction in the continuing evolution of M/A-COM.

這是 M/A-COM 持續演進過程中的一項重大資本交易。

Near term, the greater level of outstanding debt and higher interest costs will have a dilutive effect per fiscal quarter of an estimated $0.03 per share. We expect to redirect the capital to further acquisitions, which will increase our future earnings.

短期而言，未償還債務水準提高及利息成本上升，預估將使每個會計季度每股產生約 0.03 美元的稀釋效果。我們預期將把資本重新導向進一步的併購，以提升未來獲利。

M/A-COM is a disciplined consolidator, and now a proven integrator of strategic acquisitions. We believe we have many attractive strategic opportunities as our industry undergoes consolidation.

M/A-COM 是一位紀律嚴謹的整併者，且如今已被證明能成功整合策略性併購。我們相信，隨著產業進入整併期，我們擁有許多具吸引力的策略機會。

We do not at this time have an imminent transaction that will offset the near-term dilutive effect of the refinancing. We are confident the refinancing will greatly enhance shareholder value in the long term, as evidenced by the Mindspeed transaction.

目前我們並沒有即將發生、可抵銷本次再融資短期稀釋效果的交易。我們有信心，再融資將在長期大幅提升股東價值，Mindspeed 交易即為明證。

I'll turn the call back to John.

我把電話會議交回給 John。

Thank you, Bob. This quarter was all about integrating with the Mindspeed acquisition. During our first full quarter of combined operations, we closed the sale of Mindspeed's wireless business to Intel and announced a definitive agreement to divest its CPE business to Freescale, which resulted in very substantial head-count and expense reductions.

謝謝你，Bob。本季度的重點完全在於整合 Mindspeed 併購案。在我們合併營運的第一個完整季度中，我們完成將 Mindspeed 的無線業務出售給 Intel，並宣布已與 Freescale 達成出售其 CPE 業務的最終協議，因而帶來非常顯著的人力與費用縮減。

We exited the quarter with [ex-] Mindspeed head count of 206 people, down from 478 at closing on December 18, the previous quarter.

本季度結束時，[前] Mindspeed 的員工人數為 206 人，較前一季度 12 月 18 日交割時的 478 人大幅下降。

During the quarter, we reduced our real estate footprint, combining or closing 8 different Mindspeed offices globally. In addition, we integrated our information-technology systems with complete and successful BI, ERP, and CRM integrations.

本季度期間，我們縮減不動產據點，將全球 8 個不同的 Mindspeed 辦公室合併或關閉。此外，我們也整合了資訊科技系統，並完成且成功地整合 BI、ERP 與 CRM。

Our accelerated integration allowed us to beat the high end of our previously stated guidance, $0.05 above midpoint at $0.32 earnings per diluted share.

我們加速的整合使我們的表現超越先前所提供財測區間的高端，每股稀釋後盈餘 0.32 美元，較中位數高出 0.05 美元。

Put in perspective, that's $0.07 above pre-Mindspeed consensus for Q2, in line with our commitment to deliver $0.15 to $0.20 of accretion in fiscal 2014, as stated at the time of our announcement last November.

從整體來看，這比併購 Mindspeed 前市場對第二季的共識預期高出 0.07 美元，並符合我們在去年 11 月宣布時所承諾於 2014 會計年度帶來 0.15 至 0.20 美元的增益（accretion）。

I'm extremely proud of our team and their ability to execute on this multi-facetted acquisition and rapid integration. With the integration behind us, this is the last time you will hear the name Mindspeed in our discussion of M/A-COM's financial projections and performance.

我為我們的團隊以及他們在這項多面向併購與快速整合上的執行能力感到非常自豪。隨著整合已告完成，這將是你們最後一次在我們對 M/A-COM 財務預測與表現的討論中聽到 Mindspeed 這個名字。

In addition, I would like to provide a quick update on key announcements during the quarter.

此外，我也想就本季度的幾項重要公告提供簡要更新。

Early in March, we were at OFC, the industry's premier optical trade show. Driving home our 100G optical-electronics leadership position, we announced three customer wins with [source patonics], Molex, and JDSU.

3 月初，我們參加了業界首屈一指的光學展會 OFC。為了凸顯我們在 100G 光電領域的領導地位，我們宣布取得三項客戶勝利，分別來自 [source patonics]、Molex 與 JDSU。

In addition, we unveiled the industry's first integrated CDR and modulator driver for CFP4 form factors, showcasing our ability to leverage our silicon-germanium expertise to uniquely deliver products at lower power and reduced footprint.

此外，我們發表了業界首款針對 CFP4 外形規格的整合式 CDR 與調變器驅動器，展現我們能運用矽鍺（SiGe）專長，以更低功耗與更小占板面積提供獨特產品的能力。

Looking strategically and longer term, at NAB earlier this month, we unveiled the industry's first 12G-SDI product family, which firmly establishes us as a pre-eminent supplier to the video-broadcast industry.

從策略與更長期的角度來看，本月稍早在 NAB 上，我們發表了業界首個 12G-SDI 產品系列，這使我們穩固成為影音廣播產業的頂尖供應商。

12G-SDI is the next data rate in the evolution in the serial-digital interface standard in video production and broadcasts. It's required to support 4K video resolutions at 60 frames per second, over a single coaxial cable or optical fiber, something many previously thought unfeasible.

12G-SDI 是影像製作與廣播中序列數位介面（SDI）標準演進的下一個資料速率。它是為了在單一同軸電纜或光纖上，以每秒 60 幀支援 4K 影像解析度所必需的，而這在過去曾被許多人認為不可行。

By releasing the industry's first complete 12G-SDI chipset to complement our line of 12-gigabit-per-second cross-linked switches, we're able to leap-frog the market and provide key building blocks to build 4K video production and broadcast systems today.

透過推出業界首套完整的 12G-SDI 晶片組，以搭配我們 12Gbps 交叉連接交換器產品線，我們得以超前市場，並提供關鍵的構建模組，讓客戶今天就能建置 4K 影像製作與廣播系統。

As I've highlighted previously, our RF microwave industry is on the cusp of a major transition from gallium arsenide to gallium nitride, or GaN, technology. This shift will be felt far and wide, impacting our industry and others in profound ways for decades to come.

如我先前所強調，我們的 RF 微波產業正處於從砷化鎵（GaAs）轉向氮化鎵（GaN）技術的重大轉折點。這項轉變將廣泛且深遠地影響我們的產業及其他產業，並在未來數十年帶來深刻影響。

We believe GaN technology will ultimately disrupt as much as 80% of our targets markets and applications and bring with it the opportunity for M/A-COM to drive very significant share gains.

我們相信，GaN 技術最終將顛覆多達 80% 的目標市場與應用，並為 M/A-COM 帶來推動顯著市占提升的機會。

During the quarter, we made great strides towards facilitating this transition. First, we announced the acquisition of Nitronex.

本季度期間，我們在推動這項轉型方面取得重大進展。首先，我們宣布收購 Nitronex。

This acquisition immediately equips M/A-COM with the broadest portfolio of GaN-based products in the industry, as well as a deep portfolio of fundamental intellectual property in the field of GaN-on-silicon materials, process, and device technology for RF and microwave applications.

此項收購立即使 M/A-COM 擁有業界最廣泛的 GaN 產品組合，同時也取得在 GaN-on-silicon 材料、製程與元件技術（用於 RF 與微波應用）領域的深厚基礎智慧財產權組合。

We believe we can use this IP position as an offensive weapon to erect and defend strong barriers to entry and further solidify our leadership position in this field.

我們相信，我們可將此 IP 佈局作為進攻性武器，用以建立並捍衛強而有力的進入障礙，並進一步鞏固我們在此領域的領導地位。

Second, during the quarter we announced an agreement with IQE, the world's premier supplier of compound semiconductor material, which we believe is the first step to achieving our goal of scaling capacity and driving cost structure for GaN materials to mass-market adoption points. This removes a major barrier to the adoption of GaN technology for mainstream commercial applications.

第二，本季度我們宣布與 IQE（全球首屈一指的化合物半導體材料供應商）達成協議；我們相信這是實現我們目標的第一步，即擴大 GaN 材料產能並推動成本結構達到可被大眾市場採用的水準。這消除了 GaN 技術在主流商業應用採用上的一項重大障礙。

At maturity, we believe that M/A-COM's GaN-on-silicon technology will benefit from silicon cost structures that are 3 times lower than today's highest-volume gallium-arsenide technology in handsets and 100 times lower than today's GaN-on-silicon-carbide technology, which everyone other than Nitronex uses today.

在技術成熟時，我們相信 M/A-COM 的矽基氮化鎵（GaN-on-silicon）技術將受惠於矽的成本結構：相較於目前手機中出貨量最高的砷化鎵技術，成本可低 3 倍；相較於目前除 Nitronex 之外幾乎所有人都在使用的碳化矽基氮化鎵（GaN-on-silicon-carbide）技術，成本可低 100 倍。

Let me repeat -- this will deliver the industry's highest compound-semiconductor performance at a cost structure that's 3 times to 100 times lower cost than incumbent technologies.

我再重申一次——這將以比既有技術低 3 倍到 100 倍的成本結構，提供業界最高的化合物半導體效能。

We believe the combination of Nitronex and IQE will enable M/A-COM to drive this technology transition deeply and broadly and thus establish premier positions in almost all commercial markets and applications that we address today. We expect these will be key for M/A-COM driving sustainable growth and profitability for decades to come.

我們相信 Nitronex 與 IQE 的結合，將使 M/A-COM 能夠在深度與廣度上推動這項技術轉換，進而在我們目前所觸及的幾乎所有商業市場與應用中建立領先地位。我們預期，這些將是 M/A-COM 在未來數十年推動可持續成長與獲利能力的關鍵。

To conclude my comments, I want to reiterate that I'm very pleased with the strong execution in completing the Mindspeed acquisition in the first full quarter of combined operations.

在結束我的發言前，我想再次強調，我對於在合併營運的第一個完整季度內，順利完成 Mindspeed 併購所展現的強勁執行力感到非常滿意。

This sets the stage for realizing the full benefits of the operational and financial synergies, as well as cross-selling opportunities in the second half of our fiscal year.

這為我們在本會計年度下半年實現營運與財務協同效益的全部利益，以及交叉銷售機會，奠定了基礎。

Turning to our guidance, for the third quarter, taking into the account our expectation that the sale of the CPE business will close in our third fiscal quarter, we currently expect revenues to be in the range of $108 million to $112 million, and non-GAAP gross margins between 49% and 53%.

接著談我們的財測指引。就第三季而言，考量到我們預期 CPE 業務的出售將在我們的第三個會計季度完成交割，我們目前預期營收將落在 1.08 億至 1.12 億美元之間，非 GAAP 毛利率介於 49% 至 53%。

Based on our expectation that our term-B loan refinancing will also close this quarter, non-GAAP earnings per diluted share between $0.30 and $0.33 on an expected 49.3 million shares outstanding.

基於我們也預期本季將完成 B 期定期貸款（term-B loan）的再融資，按預期流通在外股數 4,930 萬股計算，非 GAAP 稀釋後每股盈餘介於 0.30 至 0.33 美元。

If for any reason the term-B doesn't close this quarter, we expect that non-GAAP earnings will range between $0.33 and $0.36 per diluted share.

若因任何原因 B 期定期貸款未能在本季完成，我們預期非 GAAP 稀釋後每股盈餘將介於 0.33 至 0.36 美元。

With that, operator, you can now open the call for questions.

以上，接線員，您現在可以開放提問。

(Operator instructions) Blayne Curtis of Barclays.

（接線員指示）Barclays 的 Blayne Curtis。

John, maybe just on the outlook for the June quarter -- is there any difference between your segments that you saw the weakness in A&D -- does that come back for you? And if you could just talk about your outlook for the carrier networks, which are seeing some strong end-market trends.

John，關於 6 月季度的展望——你們在航太與國防（A&D）看到的疲弱，是否在各事業部之間有差異？那部分會回來嗎？另外也請談談你們對電信營運商網路（carrier networks）的展望，因為那邊終端市場趨勢看起來相當強勁。

Well, actually, from an outlook standpoint, everything is up and to the right. Every segment, every business unit, every product line is booked at a level that we're confident will grow across the board.

其實就展望而言，一切都在往上走、往右走。每個區隔、每個事業單位、每條產品線的接單水位，都讓我們有信心能全面成長。

So there's nothing that stands out, more or less, other than the fact that as you noted, we did have a soft quarter for A&D. The backlog is consistent with that recovering to full recovery to the previous run rates.

所以沒有什麼特別突出或例外的地方；如你所提到的，我們的確在 A&D 有一個較疲弱的季度。但積壓訂單（backlog）顯示其將回升，並恢復到先前的運行水準。

And then, Bob, the OpEx actually came in a little bit better for March. Obviously, a lot of moving pieces with the two acquisitions. It seems like you're guiding it up in June. Is that just Nitronex, or can you -- and then, can you talk about the synergies going forward? You were looking to realize those over the next couple quarters. Did you get some of that in March? If you could just walk through the different puts and takes, that would be helpful.

另外，Bob，3 月的營業費用（OpEx）實際上比預期好一些。顯然兩起併購帶來很多變動因素，但你們在 6 月季度的指引看起來是往上。那只是 Nitronex 的影響嗎？另外也能否談談後續的協同效益？你們原本希望在接下來幾個季度實現；3 月季度是否已經拿到一部分？如果能帶我們走一遍不同的增減因素，會很有幫助。

Yes. Blayne, starting from the last question, we did realize the synergies quickly and efficiently in the first quarter here, and that's why we did a little better.

是的。Blayne，先從你最後一個問題開始，我們在本季第一季就快速且有效率地實現了協同效益，這也是為什麼我們表現稍微好一些。

But we do have some programs that are incremental expenses on the development side that do increase OpEx moving into the fiscal third quarter.

不過在研發端我們確實有一些專案會帶來額外支出，進入會計第三季時會使營業費用（OpEx）增加。

And then maybe a final one for John. Obviously, GaN-on-silicon is quite disruptive. It comes with challenges, as well. Can you talk about the milestones that you need to hit to get product here? And does Nitronex have any real revenue today that you added in? Thanks.

最後再問 John 一題。顯然矽基氮化鎵（GaN-on-silicon）相當具顛覆性，但也伴隨挑戰。你能談談要把產品推進到這裡需要達成哪些里程碑嗎？另外 Nitronex 目前是否有任何實質營收是你們併入的？謝謝。

Sure, yes. So Nitronex absolutely came with revenues. I don't think that they're material in the grand context of M/A-COM where it is today, but they are not immaterial. And from an EPS standpoint, it's -- the effect is relatively de minimus, on the up side or down side.

當然，可以。Nitronex 的確帶有營收。我不認為以 M/A-COM 目前的整體規模來看那是重大的，但也不是可以忽略不計。就 EPS 角度而言——無論正向或負向——影響相對是微不足道（de minimus）的。

But your comment about GaN-on-silicon being disruptive and the status on where that stands -- actually, Nitronex was acquired by John Ocampo, our Chairman and primary investor, about 18 months ago. So we've been working behind the scenes as a licensee of that technology and tracking and engaging with some lead customers.

至於你提到矽基氮化鎵（GaN-on-silicon）的顛覆性以及目前進展——其實 Nitronex 是在大約 18 個月前由我們的董事長兼主要投資人 John Ocampo 收購的。因此我們一直在幕後以該技術的被授權方身分運作，並追蹤、接觸一些領先客戶。

And we pulled the trigger, actually, when we had convinced ourselves and those customers that the technology was fully ready for prime time in some mass markets without exception.

而我們之所以真正扣下扳機，是因為我們已經說服自己以及那些客戶：這項技術在某些大眾市場已完全準備好進入主流量產，毫無例外。

So the remaining aspects, which we've made great progress with IQE and we continue to make great progress, hopefully over the next quarter we can have some additional exciting announcements.

至於剩餘的部分，我們與 IQE 已取得很大進展，且仍持續推進；希望在接下來一個季度能有一些額外令人振奮的公告。

Everything now from our perspective relates to the commercial aspects, getting the cost structure and the capacity in line. The technical challenges with GaN-on-silicon we're now convinced are behind us. Great question, though.

從我們的角度看，現在所有重點都在商業化層面：讓成本結構與產能配置到位。對於矽基氮化鎵（GaN-on-silicon）的技術挑戰，我們現在確信已經在身後了。不過這確實是個好問題。

Steve Smigie with Raymond James.

Raymond James 的 Steve Smigie。

Congratulations on the nice report and guide here. Real quick on the guidance -- can you talk a little bit about what the CPE impact is in the quarter? It seems like the guidance might have been even somewhat further ahead, if that were still in the fiscal third quarter. So I was just curious about the CPE impact.

恭喜你們這次的財報與指引都很不錯。快速問一下指引——能否談談本季 CPE 的影響有多大？看起來如果它仍留在會計第三季，指引可能還會更往前一些。所以我想了解一下 CPE 的影響。

Steve, obviously, if we kept it longer -- if we keep it longer, we will harvest the business if the transaction does not close. So we're in a position to believe that it will close, not hard evidence.

Steve，很明顯，如果我們持有更久——如果我們持有更久，若交易未能完成交割，我們就會繼續收割（harvest）這項業務。因此我們目前是基於相信它會完成交割，而不是基於確鑿的證據。

There's third-party items -- conditions to closing that must be completed that neither party control in this process here, but they're moving along.

交割還有第三方事項——一些交割條件必須完成，而在這個流程中雙方都無法完全控制，但目前進展順利。

The guidance -- the business is not strategic; it is lower margin. And whether it goes up and down, it doesn't have a dramatic effect outside of the guidance that we have provided. [Given] the transaction is completed, we're comfortable with the guidance level across the [top] line and the EPS level, as well.

至於指引——這項業務並非策略性業務，毛利率也較低。它的上下波動，除了我們已提供的指引範圍外，並不會造成戲劇性的影響。假設交易完成，我們對營收（top line）與 EPS 水準的指引都感到有把握。

And then just following up on acquisition stuff, you were talking a little bit about Nitronex. You talked about GaN-on-silicon or GaN in general taking an 80% share going forward. John, I know you had a pretty positive experience I think at NXP with LDMOS, where you were able to take a lot of share. I think you talked about that. Can you share your experience with that, and if that's a similar type of opportunity you see here, and what would give you some confidence in the big (inaudible) you're talking about?

再接著問併購相關的事，你剛剛談到一些 Nitronex。你提到矽基氮化鎵（GaN-on-silicon）或 GaN 整體未來會拿下 80% 的市佔。John，我知道你在 NXP 做 LDMOS 時似乎有很正面的經驗，當時你們能拿下很多市佔，我想你也提過。你能分享那段經驗嗎？以及你是否認為這裡是類似的機會？另外，什麼會讓你對你所談的那個很大的（聽不清）更有信心？

It's a great analogy. When I joined NXP, it was right about the time that they had -- on their LDMOS -- silicon LDMOS roadmap had kind of intersected Freescale. Prior to that, Freescale really had a free run in the LDMOS world with about 70% share. And then NXP and Infineon really trailed far behind.

這是個很好的類比。我加入 NXP 時，正好是他們——在 LDMOS 上——矽 LDMOS 的技術路線圖大致與 Freescale 交會的時候。在那之前，Freescale 在 LDMOS 領域幾乎一路領跑，市佔約 70%。而 NXP 與 Infineon 則遠遠落後。

Once the technology intersection occurred, we managed to drive fairly dramatic share gains. And from my old friends at NXP, I understand now they may actually be ahead of Freescale in terms of that LDMOS world.

當技術交會發生後，我們成功推動了相當顯著的市佔提升。從我在 NXP 的老朋友那裡了解，現在他們在 LDMOS 領域的地位可能甚至已經領先 Freescale。

So it's testament to the fact that semiconductor technology in these high-performance RF markets is really kind of a primary technology driver -- a primary market driver in terms of the ability to drive very significant share shifts.

這也證明了在這些高效能 RF 市場中，半導體技術本身確實是主要的技術驅動因素——也是主要的市場驅動因素——因為它能推動非常顯著的市佔移轉。

And your analogy is spot on. GaN-on-silicon, both against gallium arsenide for the more traditional M/A-COM markets, and in fact, against LDMOS for the more power RF markets, is a dislocator, a disruptive force.

而你的類比非常到位。矽基氮化鎵（GaN-on-silicon），不論是相對於砷化鎵（用於較傳統的 M/A-COM 市場），或是相對於 LDMOS（用於更偏功率 RF 的市場），都是一個顛覆者、一股破壞性的力量。

And our clear agenda is to drive exactly those sorts of share gains. And I'd like to be able to do it in a similar time line. It took us three to four years at NXP, and it would be wonderful if we could pull off the same thing again with GaN-on-silicon.

我們明確的目標就是推動那類型的市佔提升。我也希望能在類似的時間軸內做到。在 NXP 我們花了三到四年；如果我們能用矽基氮化鎵（GaN-on-silicon）再一次做到同樣的事，那會非常棒。

And since my first two were on acquisitions, let's do my third one there. Obviously, you've done some nice financing here, or are about to. What are your first objectives in terms of this? I think you talked about it a little bit, but would you prefer to bulk up a little bit on maybe the defense side, or where's the best opportunity? And should we assume it's at least something like 10% accretive as an objective, or something like that?

既然我前兩個問題都在談併購，那我第三個也繼續問這個。很明顯，你們這裡已經做了一些不錯的融資，或正準備要做。就這件事而言，你們的首要目標是什麼？我想你們稍微提到了一點，但你們會比較希望在例如國防端再擴大一些，還是說哪裡是最好的機會？另外，我們是否可以假設你們的目標至少是像 10% 的增益（accretive），或類似這樣？

We have some baseline financial metrics. There's different types of M&A. You can see Mindspeed was a much larger transaction than Nitronex, for instance. We also do things -- like we did Optomai a few years ago, which was a [free] revenue acquisition.

我們有一些基本的財務衡量指標。併購有不同類型。你可以看到，Mindspeed 是一筆比 Nitronex 大得多的交易。我們也會做一些事情——像幾年前我們做了 Optomai，那是一筆[免費]營收的收購。

But the major transactions that you're referring to, like Mindspeed, I would describe as follows. It's all about adjacency, and a lot of it has to do with bulking up in the areas where we have already identified our areas that we want to establish pre-eminent positions.

但你所指的那些主要交易，例如 Mindspeed，我會這樣描述：重點在於相鄰領域（adjacency），而且很大一部分是要在我們已經辨識出、希望建立領先地位的領域加大規模、做強做大。

In the case of Mindspeed, we had identified 100G optical as a strong market industry growth driver for the next decade, and that particular acquisition allowed us to really establish the broadest technology, our broadest market footprint, just a pre-eminent position under the optical.

以 Mindspeed 為例，我們已經辨識出 100G 光學是未來十年的強勁市場產業成長驅動因素，而那項收購讓我們得以真正建立最廣的技術、最廣的市場版圖，也就是在光學領域取得一個最具領導性的地位。

Nitronex, on a smaller scale, will do the same thing in this GaN space. So certainly, one of the criteria I look for is an acquisition that allows us to, as I said, bulk up in the areas that we think will be the industry and market growth drivers.

Nitronex 規模較小，但在這個 GaN 領域也會達到同樣效果。所以我所看重的條件之一，確實是收購能讓我們——如我所說——在我們認為將成為產業與市場成長驅動因素的領域加大規模。

And Steve, I would add the point, when I say disciplined, it really translates to neutral to accretive in the first full fiscal year.

Steve，我再補充一點：當我說「嚴謹自律（disciplined）」時，實際上就是指在第一個完整會計年度要做到不稀釋到具增益（neutral to accretive）。

Okay. Thanks a lot guys. Congratulations.

好的。非常感謝各位。恭喜。

Thank you.

謝謝。

Thank you.

謝謝。

Harlan Sur with JPMorgan.

JPMorgan 的 Harlan Sur。

Solid job on the quarterly execution, guys.

各位這季執行得很扎實。

Thanks, Harlan.

謝謝你，Harlan。

You're welcome. You mentioned -- going back to some of the prior questions -- you mentioned you're taking into the account the CPE acquisition close in the June quarter. So does this mean that you're not including CPE revenues in your June-quarter guidance? Or are you including partial revenues? And if you are including CPE partials for the quarter, how much of that is contributing to the June quarter guidance?

不客氣。你提到——回到前面一些問題——你提到你們在考量 CPE 收購在 6 月季度完成交割。那這是否表示你們在 6 月季度的指引中沒有納入 CPE 的營收？還是有納入部分營收？如果有納入 CPE 的部分營收，那對 6 月季度指引的貢獻大概是多少？

So it absolutely includes partial. I mean, it's still part of the Company now. We're almost a month into the quarter, right? So obviously some is included.

所以它絕對有包含部分。我是說，它現在仍然是公司的一部分。我們這一季已經過了快一個月了，對吧？所以很明顯有一部分已經納入。

The way I would describe it is -- the range of time of closing and the range of revenue is fully incorporated into our range of guidance. So we -- if we manage to close on the CPE transaction, we will have no need to update guidance.

我會這樣描述——交割時間區間與營收區間的範圍，都已完整納入我們的指引區間。因此我們——如果我們順利完成 CPE 這筆交易的交割——就不需要更新指引。

Okay. But can you just give us a sense of what the June quarter revenue contribution from CPE could be? Because if you do execute the transaction, these revenues will drop off in the September quarter.

了解。但你能不能讓我們大概知道，CPE 對 6 月季度的營收貢獻可能是多少？因為如果你們完成這筆交易，這些營收在 9 月季度就會消失。

Well, we don't break out any of our businesses by product line or business unit. But suffice to say, you'll continue to see growth quarter upon quarter upon quarter, under any condition.

嗯，我們不會按產品線或事業單位拆分揭露任何業務。不過可以這麼說：在任何情況下，你都會持續看到一季接一季、再一季接一季的成長。

And on the Nitronex acquisition, on the manufacturing front, where do they do most of their manufacturing in-house? And if they do do it in-house, does the M/A-COM team have any plans to move the manufacturing to Lowell or to your partner, GCS?

再問 Nitronex 的收購，在製造端，他們大部分製造是在內部完成嗎？如果是在內部完成，M/A-COM 團隊是否有計畫把製造移到 Lowell，或移到你們的合作夥伴 GCS？

So the primary wafer fab for Nitronex over recent years has been a company called GCS in Southern California, a very good compound-semiconductor manufacturer, who we use, as well. I mean, GCS is a great partner. In fact, we partner with them to transfer GaN-on-silicon-carbide technology, which is proceeding very nicely. Great company to work with.

所以 Nitronex 近年來主要的晶圓廠是一家位於南加州、名為 GCS 的公司，是非常優秀的化合物半導體製造商，我們也有使用。我是說，GCS 是很棒的合作夥伴。事實上，我們與他們合作進行 GaN-on-silicon-carbide 技術移轉，進展非常順利。是一家很值得合作的公司。

The end game, to answer your question, is 8-inch, not 4-inch, not 6-inch, but 8-inch scale-volume silicon manufacturers -- it's someone who will -- we are talking, and in fact, we have 8-inch wafers in line today.

要回答你的問題，最終目標是 8 吋，不是 4 吋，也不是 6 吋，而是 8 吋、具規模量產的矽晶圓製造商——也就是某個會——我們正在洽談，而且事實上，我們今天就已經有 8 吋晶圓在產線上。

And the way to think about it is, the real opportunity with GaN-on-silicon is to leverage the scale volume for GaN-on-silicon from things like power conversion and LED lighting. And by comparison, our little RF microwave space that we plan to continue focusing on is very small by comparison.

你可以這樣理解：GaN-on-silicon 的真正機會，是利用像電源轉換與 LED 照明這些領域帶來的 GaN-on-silicon 規模量產。相較之下，我們計畫持續聚焦的 RF 微波領域，規模就小得多。

And let me give you a metric here to kind of put things in context. An entire year's production for our entire RF and microwave industry can be serviced within a week, or so, from one 8-inch silicon fab that services things like the power-conversion market.

我給你一個指標來幫助把事情放在脈絡中：我們整個 RF 與微波產業一整年的產量，大概只要一座服務電源轉換等市場的 8 吋矽晶圓廠，一週左右的產能就能供應。

So you can get a sense of the economy of scale that we can really leverage by moving this to a real silicon cost structure.

所以你可以感受到，當我們把它移到真正的矽成本結構時，能夠大幅運用的規模經濟。

And then, on the technology front, obviously it seems like Nitronex figured out some sort of proprietary way to bring together GaN and silicon and enjoy the lower cost structure of the silicon substrate that you talked about. Any negative tradeoffs on the performance side to using the silicon substrate? And if not -- I mean, does M/A-COM see their broader GaN-based portfolio moving over to complete silicon-based substrate over time?

再來在技術面，顯然 Nitronex 似乎找到了某種專有方法，把 GaN 與矽結合起來，並享受你提到的矽基板較低的成本結構。使用矽基板在效能面有任何負面取捨嗎？如果沒有——我是說，M/A-COM 是否認為他們更廣泛的 GaN 產品組合，隨時間推進會逐步轉向完全以矽為基板？

That's a very insightful question. So let me put it this way. Nitronex has been in existence since 1999, so 15 years of innovation in the field of GaN-on-silicon.

這是一個非常有洞見的問題。我這樣說：Nitronex 自 1999 年成立至今，在 GaN-on-silicon 領域已經有 15 年的創新。

A lot of the original work came out of NC State. They're based down in North Carolina, Nitronex is. They were the innovator for well over a decade that built a lot of the innovations at the materials layer -- so epitaxial technology, to be able to get RF performance on a silicon substrate, as well as device layout, as well as process techniques for that matter, as well as application techniques to be able to get the performance.

很多最初的工作源自北卡州立大學（NC State）。Nitronex 總部在北卡羅來納州。他們在十多年期間一直是創新者，在材料層建立了大量創新——例如外延（epitaxial）技術，使其能在矽基板上達到 RF 效能；以及元件佈局、製程技術，甚至應用技術，以取得所需效能。

And the way to think about the performance is, GaN is GaN, whether it's on a silicon substrate or a silicon-carbide substrate. The breakthrough that I referred to in the earlier question is, we've now demonstrated exactly the same bandwidth and efficiency on silicon substrate as previously demonstrated on silicon-carbide, for a very small fraction of the cost -- I mean, literally an order of magnitude at the end game and two orders of magnitude from today's cost structure.

至於效能的理解方式是：GaN 就是 GaN，不論是在矽基板上或碳化矽基板上。我在前一個問題提到的突破是：我們現在已經證明，在矽基板上可以達到與先前在碳化矽上所展示完全相同的頻寬與效率，而且成本只是一小部分——我是說，最終目標下確實可達到一個數量級的差距，而相較於今天的成本結構甚至可達到兩個數量級。

The difference in the long run -- it has to do with power density. Silicon-carbide is a better thermal conductor; so for the very highest-power applications, like kilowatts, silicon-carbide will have a long-term niche play.

長期來看差異在於——與功率密度有關。碳化矽的導熱性更好；因此在最高功率的應用（例如千瓦等級）上，碳化矽會有長期的利基市場。

For that reason, we are still actively transferring the GCS silicon-carbide technology into Lowell. That will have a long-term play in defense markets, where -- you know, [capital] light fab with domestic supply will have a long-term play.

基於這個原因，我們仍在積極把 GCS 的碳化矽技術移轉到 Lowell。這在國防市場會有長期的發揮空間，因為——你知道——以較輕資本（[capital] light）的晶圓廠、加上國內供應，會有長期的角色。

But anything that is cost sensitive -- so arguably 90%, 95% of the unit volume -- will very naturally evolve over to GaN-on-silicon. So hence being able to leverage the silicon side of the semiconductor industry is a big deal.

但凡是對成本敏感的——所以可以說占 90%、95% 的出貨量——將會非常自然地演進到 GaN-on-silicon。因此，能夠利用半導體產業的矽端規模，是一件大事。

Makes sense. Thank you.

了解。謝謝。

You're welcome.

不客氣。

Tore Svanberg with Stifel.

Stifel 的 Tore Svanberg。

Thanks. This is [Eric], calling in for Tore. I wanted to get back to your earlier comment. You said you were on target for your accretion level of 15% to 20%. Are you still also on target for the 25% to 30% in fiscal 2015?

謝謝。我是[Eric]，代 Tore 來電。我想回到你先前的評論。你說你們的增益（accretion）水準 15% 到 20% 仍在軌道上。那你們在 2015 會計年度的 25% 到 30% 也仍在軌道上嗎？

Eric, I'd like to make the correction. It's not 15% to 20%. It's --.

Eric，我想更正一下。不是 15% 到 20%。是——。

Oh, cents.

喔，是美分（cents）。

Cents, right. And so with the $0.07, if measured back, we have -- annualized over the balance of the three quarters, you've got $0.21 just on this quarter alone.

對，是美分。所以以 0.07 美元來看，如果回推衡量，我們——把剩下三個季度年化之後，光是這一季就相當於 0.21 美元。

And then if you want to annualize it to four quarters, it would be $0.28. So I think the answer to your question is, yes.

然後如果你想把它年化到四個季度，會是 0.28 美元。所以我想你問題的答案是，是的。

Okay. Sounds good.

好的。聽起來不錯。

By the way, we still have lots of soft synergies that we can garner over the future quarters.

順帶一提，我們在未來幾個季度仍有很多「軟性」協同效益可以取得。

And then gross margins -- any update on your target model there, given the favorable exits of some of the Mindspeed lower-margin assets?

另外，毛利率——鑑於退出了部分 Mindspeed 低毛利資產，你們在那邊的目標模型有沒有更新？

You'll continue to see the gross-margin improvement quarter upon quarter upon quarter through the rest of this year. We have no end point, as far as I'm concerned. We're investing in very high-margin new products, both on what was previously part of the Mindspeed portfolio, but certainly throughout the M/A-COM portfolio, north of 70%.

在今年剩下的時間裡，你會看到毛利率一季接一季、持續改善。就我而言，我們沒有終點。我們正在投資於毛利非常高的新產品，包含先前屬於 Mindspeed 產品組合的部分，當然也涵蓋整個 M/A-COM 產品組合，毛利率在 70% 以上。

A lot of the growth that we're driving, like the optical business, is at very sweet gross margins. As we continue to grow, you'll see the gross margin continue to progress. And we're not going to stop at 50%. We're not going to stop at 55%. And frankly, we won't stop at 60%.

我們推動的很多成長，例如光學業務，都有非常漂亮的毛利率。隨著我們持續成長，你會看到毛利率持續提升。我們不會停在 50%。不會停在 55%。坦白說，也不會停在 60%。

So it's all about being able to continue the growth to be able to improve the product mix.

所以重點在於能夠持續成長，進而改善產品組合。

And in earlier, too -- in relation to your prior comment, you said you saw growth quarter over quarter going forward. So is there any seasonality in your business that we should be thinking about? Or is it more kind of CapEx-dependent?

另外，回到你先前的評論——你說你看到未來會有逐季成長。那你們的業務是否有任何季節性是我們應該考慮的？還是比較偏向取決於資本支出（CapEx）？

There really isn't any seasonality, frankly, other than the summer period where things slow down a little bit over in Europe. But other than that -- we're not really exposed to any of the consumer cycles. We have very little that would fall into end category of consumer.

老實說，幾乎沒有季節性，除了夏季期間歐洲那邊會稍微放慢一些。除此之外——我們其實不太暴露在任何消費循環之下。我們很少有產品會落在消費端的終端類別。

And we think we can just sustain our growth rate at -- minimally, two times the market growth rate. And our real target is three.

我們認為我們可以把成長率維持在——至少是市場成長率的兩倍。而我們真正的目標是三倍。

Can I just sneak in one more? Obviously, a lot of conversation on the call now about GaN-on-silicon and GaN technology in general; and you'd said that your target would be 80% of your portfolio. When do you think, though, that you might start to see some of those improvements where you can actually see 80% of your portfolio on GaN, or targeting GaN?

我可以再偷偷問一個嗎？顯然這通電話現在有很多關於矽基氮化鎵（GaN-on-silicon）以及整體 GaN 技術的討論；你也說你們的目標是讓 80% 的產品組合採用 GaN。那你覺得什麼時候會開始看到一些改善，讓你們真的能看到 80% 的產品組合在 GaN 上，或以 GaN 為目標？

Well, 80% is our estimate of where things would end up. Nothing is every black and white, 100%. So 80% is a number in spirit, which is -- you know, the large majority of the markets and applications we address.

嗯，80% 是我們對最終走向的估計。沒有任何事情是非黑即白、100% 的。所以 80% 這個數字是精神上的意思——也就是說，我們所服務的大多數市場與應用。

That said, a lot of our markets -- defense, aerospace, even a lot of the network infrastructure -- are not fast moving. We are not -- both on the up side and the down side not exposed to rapid churn. So replacement takes time.

話雖如此，我們很多市場——國防、航太，甚至許多網路基礎建設——都不是快速變動的。我們不會——無論是上行或下行——暴露在快速汰換之下。所以替換需要時間。

I think among the fastest moving is the previous question about the base-station industry. Moving 30% share plus in three to four years is about the fastest that I would envision. And if we could pull that off -- I mean, that would be exceeding everyone's expectations, including our own. But this industry is measured in decades, not quarters or years.

我認為變動最快的之一，是前一題提到的基地台產業。在三到四年內把市占提升到 30% 以上，差不多是我能想像的最快速度。如果我們能做到——我的意思是，那會超出所有人的預期，包括我們自己。但這個產業是以十年為單位衡量的，不是以季度或年度。

Understood. Thank you very much.

了解。非常感謝。

You're welcome.

不客氣。

Harsh Kumar with Stephens.

Stephens 的 Harsh Kumar。

Yes. This is [Richard], calling in for Harsh. Thanks for taking my question, and congratulations, guys.

是的。我是 [Richard]，代 Harsh 打進來。謝謝讓我提問，也恭喜各位。

Thanks.

謝謝。

I was wondering if you could start with stack rate, ranking some of your remaining levers to get to your gross-margin targets. I know that you talked about the higher opportunity -- growth opportunities with some higher-margin businesses, but are there any things that you're doing internally to get to those gross-margin targets?

我想先從「堆疊率」（stack rate）開始，請你把達成毛利率目標的剩餘幾個槓桿按重要性排一下。我知道你提到一些高毛利業務帶來更高的成長機會，但在內部方面，你們是否也有在做一些事情來達成那些毛利率目標？

Well, we continue to beat on [COGS], continue to make progress. But I mean, realistically, the basis-point improvement and gross margin that will come out of COGS on a go-forward basis is really dwarfed by the opportunity to change the mix.

嗯，我們持續在 [COGS] 上下功夫，持續取得進展。但實際上，未來從 COGS 帶來的毛利率基點改善，跟改變產品組合的機會相比，真的小很多。

And so that is one primary lever. So it's to me -- you know, gross-margin improvement is all about R&D and investing in new products and identifying and establishing pre-eminent positions in the areas that can actually yield and sustain high gross margins. And I think we're very much on track for doing that.

因此，那是一個主要槓桿。對我來說——你知道，毛利率改善的關鍵在於研發（R&D），投資新產品，並在那些能夠產生並維持高毛利率的領域，辨識並建立領先地位。我認為我們在這方面非常按計畫推進。

And then, second question -- looking at the aerospace-and-defense side, have you seen any changes in the pricing dynamics over the last couple quarters?

第二個問題——看航太與國防這一塊，過去幾個季度你們有看到定價動態有任何變化嗎？

I think the simple answer to that is, no. We are not in part of the industry where there is a lot of pricing as it relates to demand.

我想簡單的答案是，沒有。我們不在那種會因需求而出現大量價格變動的產業區段。

I think the one thing that's materialized in the past quarter that has to do with our aerospace-and-defense business, which is actually quite positive is, some of the consolidation that's going on with some of our competitors, which is creating an opportunity for us.

我認為過去一個季度在我們航太與國防業務上出現、而且其實相當正面的事情是：我們一些競爭對手正在進行整併，這為我們創造了機會。

When people announce very high degrees of target synergies and begin laying off engineers in their networks and defense business, it, frankly, very quickly yields customer and revenue leakage. And I think we're just perfectly positioned to reap the benefits of that.

當有人宣布非常高程度的目標協同效益，並開始在其網路與國防業務裁撤工程師時，坦白說，很快就會造成客戶與營收流失。我認為我們正好處於完美位置，可以收割這些好處。

And if I can sneak one more in -- looking at your catalog business, that's been one area that you've improved dramatically over the last couple -- year or so. How do you anticipate that looking over the next year, as we look out?

如果我可以再偷偷問一個——看你們的型錄（catalog）業務，這是你們在過去幾個——大約一年左右大幅改善的一個領域。展望未來一年，你預期會是什麼樣子？

It's getting better and better and better. We've got a focus, both on the demand-creation side and fulfillment side. We've been tuning our operations model to be able to rapidly react and capture up-side business.

它會越來越好、越來越好、越來越好。我們同時聚焦在需求創造端與履約端。我們一直在調整我們的營運模型，以便能快速反應並抓住上行的業務機會。

I think we're best in class, no question. We just launched a new website. And today's catalog is conceptually the web, and in terms of ease of use and access to information, I would genuinely say, based upon my prior employers, which are very strong catalog sales companies, we are best in class.

我認為我們是同級最佳（best in class），毫無疑問。我們剛推出一個新網站。而今天的型錄在概念上就是網路；就易用性與資訊取得而言，我真心認為，基於我過去任職的公司——那些都是非常強的型錄銷售公司——我們是同級最佳。

We've used best practice from those and others in the industry and actually innovated on top of that. So I think as we bring that web presence to bear and as we tune up our sales channel and integrating not just the Mindspeed folks but continue to hire and tune up our [FAE] support, I think we can just bring it to another level.

我們採用了那些公司以及業界其他公司的最佳實務，並在其上進一步創新。所以我認為，當我們把這個網路能見度發揮出來，並且強化我們的銷售通路、整合不只是 Mindspeed 的同仁，同時持續招募並強化我們的 [FAE] 支援時，我認為我們可以把它提升到另一個層次。

Best of luck, guys.

祝各位好運。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I'd like to turn the conference over to John Croteau for any closing remarks.

謝謝。目前沒有其他問題。我想把電話交給 John Croteau，請他做結語。

Very good. A couple final notes before we close today's call. Bob and I will be attending the JP Morgan conference in Boston on Monday, May 19, and would welcome the opportunity to meet with any investors planning to attend.

很好。在結束今天的電話會議前，最後幾點說明。Bob 和我將於 5 月 19 日（週一）在波士頓參加摩根大通（JP Morgan）研討會，並歡迎任何計畫出席的投資人與我們會面。

And finally, I'm very excited to announce that M/A-COM will be hosting our inaugural analyst day in New York on Thursday, May 29. This will be an invitation-only event, so please contact us at ir@macom.com if you'd like to attend.

最後，我非常興奮地宣布，M/A-COM 將於 5 月 29 日（週四）在紐約舉辦我們首屆分析師日。這將是僅限受邀參加的活動，因此若你希望出席，請透過 ir@macom.com 與我們聯繫。

Thank you again for joining us for today's call, and I look forward to reporting our continued progress next quarter. Operator, you may now disconnect the call.

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。接線員，現在可以中斷通話。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Have a wonderful day.

各位女士、先生，感謝您參與今天的會議。本次議程到此結束。您現在可以中斷連線。祝您有美好的一天。