MACOM Technology Solutions Holdings, Inc. (MTSI) 2014 Q4 法說會逐字稿

Good afternoon and welcome to MACOM Technology Solutions fourth-quarter 2014 financial results conference call.

下午好，歡迎參加 MACOM Technology Solutions 2014 年第四季財務業績電話會議。

(Operator Instructions)

（接線員指示）

As a reminder this conference call is being recorded today, Tuesday, November 18, 2014.

提醒各位，本次電話會議正在錄音，時間為 2014 年 11 月 18 日（星期二）。

I would now like to turn the call to Leanne Sievers of Shelton Group, the Investor Relations agency for MACOM. Leanne, please go ahead.

現在我想把電話交給 Shelton Group 的 Leanne Sievers，她是 MACOM 的投資人關係代理機構。Leanne，請開始。

Good afternoon and welcome to MACOM Technology Solutions' fourth-quarter 2014 earnings conference call. I'm Leanne Sievers, Executive Vice President of Shelton Group, MACOM's Investor Relations firm. With us today are MACOM's President and Chief Executive Officer, John Croteau and Senior Vice President and Chief Financial Officer, Bob McMullan. If you've not yet received a copy of the press release, you can obtain a copy of MACOM's website alt www.MACOM.com, under the Investor Relations section.

下午好，歡迎參加 MACOM Technology Solutions 2014 年第四季財報電話會議。我是 Shelton Group 的執行副總裁 Leanne Sievers，Shelton Group 為 MACOM 的投資人關係公司。今天與會的有 MACOM 總裁暨執行長 John Croteau，以及資深副總裁暨財務長 Bob McMullan。若您尚未收到新聞稿，可至 MACOM 網站 alt www.MACOM.com 的「投資人關係」專區取得。

Before I turn call over to Mr. Croteau, I'd like to remind our listeners that Management's prepared remarks and answers to your questions contain forward-looking statements, which is are subject to risks and uncertainties. Because actual results may differ materially from those discussed today, MACOM claims the protection of the Safe Harbor for forward-looking statements, contained in the Private Securities Litigation Reform Act of 1995 and refers you to a more detailed discussion of risks and uncertainties that could result in those differences in MACOM'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 August 1, 2014. Any projections as to the Company's future performance represent Management's estimates as of today, November 18, 2014 and MACOM assumes no obligation to update these projections in the future.

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以及對各位問題的回答包含前瞻性陳述，且受風險與不確定性影響。由於實際結果可能與今日討論內容有重大差異，MACOM 主張適用《1995 年私人證券訴訟改革法案》中關於前瞻性陳述的「安全港」保護，並請各位參閱 MACOM 向美國證券交易委員會（SEC）提交之文件中對可能導致差異之風險與不確定性的更詳細討論，包括今日提交的 Form 8-K，以及於 2014 年 8 月 1 日提交的 Form 10-Q 季度報告。任何對公司未來表現的預測均代表管理層截至今日（2014 年 11 月 18 日）的估計，MACOM 不承擔未來更新這些預測的義務。

The Company's press release and Management's statements during this conference will include discussions of certain non-GAAP measure and financial information. These financial measures and 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 SEC today and can be found at the Investor Relations section of MACOM's website. 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 MACOM's website.

公司新聞稿以及管理層在本次會議中的陳述將包含對若干非 GAAP 衡量指標與財務資訊的討論。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 當前報告中；該報告已於今日向 SEC 提交，並可於 MACOM 網站的「投資人關係」專區查閱。若各位目前無法收聽完整電話會議，網路直播的錄音將於 MACOM 網站「投資人關係」專區提供 30 天。

Now I'd like to turn the call over to MACOM's President and CEO, John Croteau. John, please go ahead.

現在我想把電話交給 MACOM 總裁暨執行長 John Croteau。John，請開始。

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

謝謝你，Leanne。各位好，感謝今天加入我們。

I'll begin today's call with an overview of our fourth-quarter results and then turn the call over to Bob McMullan, our CFO, who will review our financial performance in further detail. I'll then conclude today's prepared comments by providing an overview of our execution during the quarter, followed by guidance for the fiscal first quarter of 2015.

我將先概述我們第四季的業績，接著把電話交給我們的財務長 Bob McMullan，他將更詳細地回顧我們的財務表現。之後我會以本季執行情況的概述作為今日事先準備發言的結尾，並提供 2015 會計年度第一季的財測指引。

Diving straight into the results, revenue for the fourth quarter was $114.3 million. Non-GAAP gross margin was 54.1%, with non-GAAP net income of $17.2 million, or $0.35 earnings per diluted share. During the quarter, gross margin and earnings per share beat the top end of our guidance. Non-GAAP gross margin improved 240 basis points from the prior quarter and 870 basis points from the prior-year quarter, due to our favorable mix, with our new high-margin Networks products exceeding all expectations.

直接進入業績部分，第四季營收為 1.143 億美元。非 GAAP 毛利率為 54.1%，非 GAAP 淨利為 1,720 萬美元，稀釋後每股盈餘為 0.35 美元。本季毛利率與每股盈餘均超越我們財測指引區間的上緣。非 GAAP 毛利率較前一季提升 240 個基點，較去年同期提升 870 個基點，主要受惠於有利的產品組合；我們新的高毛利網路產品表現超出所有預期。

Looking at our results for the quarter, excluding the impact of $5 million of Q3 revenue, which we sold to Freescale during the previous fiscal quarter, revenue growth was strong sequentially and broadly distributed across end markets. Networks grew 12% quarter on quarter, driven by major customer wins and share gains in the optical space.

就本季業績而言，若排除第三季中我們於前一會計季度出售給 Freescale 的 500 萬美元營收影響，營收的季增仍強勁，且廣泛分布於各終端市場。網路業務季增 12%，主要由重大客戶得標以及在光學領域的市占提升所帶動。

Multi-Market was up 7% due to continued growth in our catalog business and Automotive was up 9% within the normal range of fluctuations we expect from Ford. This growth was slightly offset by Aerospace and Defense, which was down 5% due to timing of certain radar programs.

多元市場（Multi-Market）因型錄業務持續成長而增加 7%；汽車業務在我們預期 Ford 正常波動範圍內成長 9%。上述成長部分被航太與國防業務的下滑所抵銷，該業務下降 5%，主要因部分雷達專案時程因素。

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

接下來我把電話交給 Bob，請他更詳細地回顧我們 2014 會計年度第四季的財務表現。

Thank you, John, and good afternoon, everyone.

謝謝你，John。各位下午好。

During the course of my comments, as well as those made by John, all income statement amounts and percentages will be discussed on a non-GAAP basis and are provided to enhance the understanding of our core operating performance. A reconciliation of each figure to the most comparable GAAP measure is included in today's earnings Press Release. As this is both our fiscal fourth quarter and fiscal year end, my comments will be first on the quarterly results, followed by the fiscal year.

在我的發言過程中，以及 John 的發言中，所有損益表金額與百分比將以非 GAAP 基礎討論，旨在增進各位對我們核心營運表現的理解。各項數字與最可比 GAAP 指標之調節表已包含在今日的財報新聞稿中。由於這同時是我們的會計年度第四季與會計年度年終，我將先評論季度結果，接著再談全年度。

Revenue was $114.3 million, representing a sequential increase of 1.7%, compared to the reported revenues of $112.4 million in the prior quarter and an increase of 37%, compared to $83.7 million in the fiscal fourth quarter of 2013. Adjusting for the $5 million sale of the business to Freescale in May, sequential revenue growth was actually 6.8%. Revenue by end markets were Networks $55.9 million and 49%, A& D was $21 million and 18%, Automotive was $20.5 million and 18%, and Multi-Market was $16.9 million and 15%.

營收為 1.143 億美元，較前一季公告營收 1.124 億美元季增 1.7%，並較 2013 會計年度第四季的 8,370 萬美元年增 37%。若就 5 月出售給 Freescale 的 500 萬美元業務影響進行調整，實際季增營收為 6.8%。按終端市場劃分之營收為：網路 5,590 萬美元、占 49%；航太與國防（A&D）2,100 萬美元、占 18%；汽車 2,050 萬美元、占 18%；多元市場 1,690 萬美元、占 15%。

Gross profit in the fiscal fourth quarter was $61.9 million, or 54.1% of revenue, compared to $58.1 million, or 51.7% of revenues in the prior quarter and $38 million, or 45.4% in the fiscal fourth quarter of 2013. Continued growth margin expansion benefited from selling higher gross margin products. In terms of operating expenses for the fiscal forth quarter, total operating expenses were $35.2 million compared to $34.2 million in the prior quarter and $21 million in the prior-year quarter.

2014 會計年度第四季毛利為 6,190 萬美元，毛利率為營收的 54.1%；相較之下，前一季毛利為 5,810 萬美元、毛利率 51.7%，而 2013 會計年度第四季毛利為 3,800 萬美元、毛利率 45.4%。毛利率持續擴張，受惠於銷售較高毛利產品。就 2014 會計年度第四季營業費用而言，營業費用總額為 3,520 萬美元，前一季為 3,420 萬美元，去年同期為 2,100 萬美元。

Research and development expense for the fiscal fourth quarter was $18.7 million. This compared to R&D expense of $18.8 million in the prior quarter and $10.1 million in the fiscal fourth quarter of 2013. R&D as a percentage of revenue represented 16.3% in the fiscal fourth quarter compared to 16.7% in the previous quarter and 12.1% in the prior year's quarter.

2014 會計年度第四季研發費用為 1,870 萬美元；相較之下，前一季研發費用為 1,880 萬美元，2013 會計年度第四季為 1,010 萬美元。研發費用占營收比重在 2014 會計年度第四季為 16.3%，前一季為 16.7%，去年同期為 12.1%。

Selling, general and administrative expenses for the fiscal fourth quarter was $16.5 million. This compared to SG&A expense of $15.4 million in the prior quarter and $10.9 million in the prior year's quarter. SG&A as a percentage of revenue represented 14.4% in the fiscal fourth quarter compared to 13.7% in the previous quarter and 13% in the prior year's quarter.

2014 會計年度第四季銷售、一般及行政費用為 1,650 萬美元；相較之下，前一季 SG&A 費用為 1,540 萬美元，去年同期為 1,090 萬美元。SG&A 費用占營收比重在 2014 會計年度第四季為 14.4%，前一季為 13.7%，去年同期為 13%。

Income from operations was $26.7 million, or 23.3% of revenue. This compares to $23.9 million, or 21.3% of revenue, in the prior quarter and $17 million, or 20.3% of revenue, in the prior year's quarter. Higher gross profits and margins drove the improvement in operating income and margin in the fiscal fourth quarter.

營業利益為 2,670 萬美元，占營收 23.3%。相較之下，前一季為 2,390 萬美元，占營收 21.3%；去年同期為 1,700 萬美元，占營收 20.3%。較高的毛利額與毛利率推動了 2014 會計年度第四季營業利益與營業利益率的改善。

EBITDA, or earnings before interest, taxes, depreciation, and amortization, was $30 million, up from $27.2 million in the prior fiscal quarter. Interest expense of $4.2 million during the fiscal fourth quarter increased from $3.2 million in the fiscal third quarter as a Term B debt was outstanding for the full fiscal quarter.

EBITDA（即息稅折舊攤銷前盈餘）為3,000萬美元，高於上一財季季度的2,720萬美元。財政第四季的利息費用為420萬美元，較財政第三季的320萬美元增加，原因是Term B債務在整個財季季度期間皆為未償狀態。

Turning to income taxes, our effective income tax rate for the fiscal fourth quarter was 23.5%. This tax rate compares to 23.5% in the prior fiscal quarter and 29% in the year-ago quarter. Before moving on from our income statement, based upon our estimate of utilization of tax and oils from the Mindspeed acquisition, our non-GAAP tax rate for FY15 is expected to be 18%, down from 23.5% in 2014.

談到所得稅，我們財政第四季的有效所得稅率為23.5%。此稅率與上一財季季度的23.5%相同，並低於去年同期季度的29%。在結束損益表的說明前，根據我們對Mindspeed收購案所帶來之稅務與其他項目利用情況的估計，我們FY15的非GAAP稅率預期為18%，低於2014年的23.5%。

Our fiscal quarter net income was $17.2 million, or $0.35 per diluted share, above the high end of our previous guidance range, compared to the fiscal third quarter net income of $15.8 million, or $0.33 per diluted share and net income of $12 million, or $0.25 per diluted share, in the prior year's quarter. The share count used to compute EPS was 48.9 million shares in the fiscal fourth quarter, 48.5 million shares for the third quarter and 48.5 million shares in the fiscal fourth quarter of 2013.

本財季季度淨利為1,720萬美元，或稀釋後每股0.35美元，高於我們先前指引區間的上緣；相較之下，財政第三季淨利為1,580萬美元，或稀釋後每股0.33美元，而去年同期季度淨利為1,200萬美元，或稀釋後每股0.25美元。用於計算EPS的股數為：財政第四季4,890萬股、第三季4,850萬股，以及2013年財政第四季4,850萬股。

For the fiscal year ended 2014, revenue was $417.6 million, growing 31% over FY13 revenue of $318.7 million. Gross margin expanded 590 basis points to 50.7% over 44.8%. EPS grew to $1.25, or 34% from $0.93 in FY13. We generated $101.1 million of EBITDA in FY14 compared to $72.5 million in FY13. Importantly, in keeping with our reputation as a disciplined acquirer and proven integrator, MACOM's FY14 included four acquisitions, where we delivered on our commitment to investors that acquisitions will be neutral to accretive in the first year to our non-GAAP EPS.

截至2014財政年度，營收為4.176億美元，較FY13的3.187億美元成長31%。毛利率擴大590個基點至50.7%，高於44.8%。EPS成長至1.25美元，較FY13的0.93美元成長34%。FY14我們創造了1.011億美元的EBITDA，相較FY13的7,250萬美元。重要的是，延續我們作為紀律嚴謹的收購者與經驗證的整合者之聲譽，MACOM的FY14包含四項收購；我們也兌現對投資人的承諾：收購在第一年對我們的非GAAP EPS將為中性至具增益（accretive）。

In summary, in FY14 revenues grew 31%, gross margins expanded 590 basis points to above 50% and we delivered 34% EPS growth.

總結而言，FY14營收成長31%，毛利率擴大590個基點並提升至50%以上，且我們實現了34%的EPS成長。

Summing up an excellent year of growth for MACOM, I would like to mention that we were named to Deloitte & Touche's 2014 Technology Fast 500 fastest growing companies in North America. Recognizing the relative youth of the other companies on the list, this award really highlights the is successful rebirth of MACOM as a growth Company.

總結MACOM這卓越的成長年度，我想提到我們入選Deloitte & Touche的2014年Technology Fast 500北美成長最快公司名單。考量名單上其他公司的相對年輕，這個獎項確實凸顯了MACOM成功重生為一家成長型公司的成果。

Back to the fiscal fourth quarter, cash flows from operations were $15.3 million, compared to $14 million in the fiscal third quarter and $1.3 million in the fiscal fourth quarter of 2013. Cash flow from operations for FY14 was $25 million.

回到財政第四季，營運活動現金流為1,530萬美元，相較財政第三季的1,400萬美元，以及2013年財政第四季的130萬美元。FY14的營運活動現金流為2,500萬美元。

Turning to the balance sheet, at fiscal quarter end our cash and cash equivalents were approximately $173.9 million. Outstanding long term debt was $347 million and we had a $100 million in credit availability. Accounts receivable of $75.2 million compares to $75.8 million at the end of the prior quarter and $63.5 million at the end of the year-ago quarter. Day sales outstanding was 60 days compared to 61 days at the end of the prior fiscal quarter and 68 days at the end of the year-ago quarter.

談到資產負債表，截至財季季度末，我們的現金及約當現金約為1.739億美元。未償長期負債為3.47億美元，且我們有1億美元的可用授信額度。應收帳款為7,520萬美元，較上一季季末的7,580萬美元略低，並高於去年同期季末的6,350萬美元。應收帳款週轉天數（DSO）為60天，相較上一財季季度末為61天、去年同期季度末為68天。

Inventory was $73.6 million, compared to $69.9 million in the prior quarter and $54.9 million in the year-ago quarter. Inventory turns were 2.9 times compared to 3.1 times in the prior fiscal quarter and 3.3 times in the year-ago quarter. Capital expenditures in the fiscal fourth quarter was $6.7 million, or 5.9% of revenue, compared to 3.8% of revenue in the fiscal third quarter and 6.1% of revenues in the fiscal fourth quarter of 2013. Depreciation expense on property and equipment for the fiscal fourth quarter was approximately $3.3 million and $12.9 million for FY14.

存貨為7,360萬美元，相較上一季的6,990萬美元及去年同期的5,490萬美元增加。存貨週轉率為2.9次，相較上一財季季度為3.1次、去年同期季度為3.3次。財政第四季資本支出為670萬美元，約占營收5.9%，相較財政第三季占營收3.8%，以及2013年財政第四季占營收6.1%。財政第四季不動產及設備折舊費用約為330萬美元，FY14合計為1,290萬美元。

I'll now turn it back over to John who will provide our business outlook for the fiscal first quarter of FY15.

接下來我把時間交回給John，他將提供我們對FY15財政第一季的業務展望。

Thanks, Bob.

謝謝你，Bob。

I'd like to begin by underscoring that we believe we're extremely well positioned to benefit from a new infrastructure buildout as global video production and broadcast transitions from high-def to ultra-high-def 4k video resolutions. Market research firm, Strategy Analytics, expects 4k television sales to increase 10 fold by 2020. We believe this trend will be a strong secular growth driver for MACOM in the coming years and that we hold the preeminent position in high performance SDI and cross point switch solutions for 4k video.

我想先強調，我們相信自己已處於極佳位置，可受惠於新一波基礎建設建置，因為全球影音製作與廣播正從高畫質（HD）轉向超高畫質（Ultra-HD）4k解析度。市場研究機構Strategy Analytics預期，4k電視銷量到2020年將成長10倍。我們相信此趨勢將在未來幾年成為MACOM強勁的長期結構性成長動能，且我們在4k影音所需的高效能SDI與交叉點交換器（cross point switch）解決方案方面，具備領先地位。

Two weeks ago Bob and I had the honor to join our high performance analog team in LA to receive the 2014 Award for Engineering Excellence from the Hollywood Post-Production Alliance. Our 12 gig SDI chip set was recognized as the industry's first to enable 4k video production. Our award-winning portfolio uniquely supports 4k video resolutions at 60 frames per second over a single coax cable or optical fiber.

兩週前，Bob和我很榮幸在洛杉磯與我們的高效能類比團隊一同，從Hollywood Post-Production Alliance手中獲頒2014年工程卓越獎。我們的12G SDI晶片組獲認可為業界首款可實現4k影音製作的方案。我們的得獎產品組合可在單一同軸電纜或光纖上，以每秒60幀的方式，獨特地支援4k解析度。

This award is a wonderful endorsement of our growth strategy in action. We've established an unrivalled technology and product portfolio and a pre-imminent market position in a space that will see strong secular growth for many years to come.

這個獎項是對我們成長策略落地執行的絕佳背書。我們已建立無可匹敵的技術與產品組合，並在一個未來多年將維持強勁長期結構性成長的領域中，取得領先的市場地位。

Moving on, last quarter we completed refinancing of our bank facility with an institutional Term B loan and a $100 million revolving credit agreement, which provided us capital to pursue further acquisitions. M & A remains a central element of our growth strategy, serving as an accelerate to success in our target markets. I'm proud to say that since our last earnings call we pulled the trigger on three acquisitions that will expand and accelerate MACOM's success in the optical space.

接著，上一季我們以機構Term B貸款與1億美元循環信用協議，完成銀行融資安排的再融資，為我們進一步進行收購提供資金。併購（M&A）仍是我們成長策略的核心要素，作為我們在目標市場加速成功的推進器。我很自豪地說，自上次財報電話會議以來，我們已完成三項收購，將擴大並加速MACOM在光學領域的成功。

Starting with the most tactical first, we acquired IKE Micro, a specialized build-to-print house based in Nashua, New Hampshire. The primary purpose of this transaction is to drive COGS reductions and further improve gross margin in our opto-electronics business. The other two transactions represent a much more strategic move to expand MACOM's footprint from purely opto-electronics to now include photonic content, thereby doubling our SAM in the optical component space: same customers, same applications, from fiber to the home to wireless backhaul and big data centers, now double the content.

先從最具戰術性的收購談起，我們收購了位於新罕布夏州納舒厄（Nashua）的IKE Micro，這是一家專精於依圖製造（build-to-print）的廠商。本交易的主要目的在於降低銷貨成本（COGS），並進一步提升我們光電（opto-electronics）業務的毛利率。另兩項交易則更具策略性，旨在將MACOM的版圖從純光電擴展至包含光子（photonic）內容，從而使我們在光學元件領域的SAM倍增：同樣的客戶、同樣的應用，從光纖到府（FTTH）到無線回程（wireless backhaul）以及大型資料中心，內容量如今加倍。

After the close of trading today we announced the acquisition of BinOptics, based in Ithaca, New York. With this move we anchor our new photonic portfolio with indium phosphide lasers. This placed MACOM's long term strength in manufacturing compound semiconductors in large volume, with high quality and at low costs. As part of MACOM, we plan to scale laser production capacity and drive market share gains in what has been a supply constrained part of our customers' supply chain.

在今天收盤後，我們宣布收購位於紐約州伊薩卡（Ithaca）的BinOptics。透過此舉，我們以磷化銦（InP）雷射作為新光子產品組合的核心。這也使MACOM能發揮其長期優勢：以高品質、低成本進行大規模化合物半導體製造。作為MACOM的一部分，我們計畫擴大雷射產能，並在客戶供應鏈中一個長期供給受限的環節推動市占率提升。

BinOptics is, in fact, the largest pure-play high speed communication laser supplier in the world. Their are highly differentiated etched facet technology, backed by broad patens and strong intellectual property, delivers customers significant system cost savings and a semiconductor cost structure that's consistent with our gross margin aspirations. Sticking to our stated M&A discipline, we expect this transaction will be accretive to gross margin, operating margin and earnings per share in fiscal Q2, our expected first quarter of combined operations.

BinOptics 事實上是全球最大的純高速度通訊雷射供應商。他們高度差異化的蝕刻端面（etched facet）技術，並由廣泛的專利與強大的智慧財產權所支撐，為客戶帶來顯著的系統成本節省，以及與我們毛利率目標一致的半導體成本結構。秉持我們既定的併購（M&A）紀律，我們預期此交易將在會計年度第二季（fiscal Q2）—也就是我們預期合併營運的第一個季度—對毛利率、營業利益率與每股盈餘（EPS）具增益效果。

In September, we acquired Photonic Controls, a small design company based in Corning, New York, bringing core competence in photonic IC, or PIC, design and manufacturing. This part of our business will remain fabless, instead building upon IP and foundry services from large, proven suppliers in this field.

9 月，我們收購了 Photonic Controls，這是一家位於紐約州康寧（Corning）的小型設計公司，帶來光子積體電路（photonic IC，或 PIC）設計與製造方面的核心能力。我們這部分業務將維持無晶圓廠（fabless）模式，轉而建立在該領域大型、成熟供應商所提供的智慧財產（IP）與晶圓代工服務之上。

Joining the forces of these two strategic assets, BinOptics and Photonic Controls, with IKE Micro and our already preeminent position in 100 gig optical further distances MACOM from our fragmented competition. We expect this strategy to enable us to provide the lowest cost per bit and the highest speed optical networks for many, many years to come. As we embark on FY15, with these acquisitions, strategic customer wins, and rapidly expanding design wins share in these markets we serve, we believe MACOM is poised to once again deliver double-digit growth on revenue, gross margin expansion, and earnings per share.

結合這兩項策略資產—BinOptics 與 Photonic Controls—再加上 IKE Micro，以及我們在 100G 光學領域既有的領先地位，將使 MACOM 與分散的競爭對手進一步拉開差距。我們預期此策略將使我們在未來許多年能提供最低的每比特成本（cost per bit）與最高速的光網路。隨著我們邁入 FY15，在這些收購案、策略性客戶勝利，以及我們所服務市場中快速擴大的設計導入（design wins）市占之下，我們相信 MACOM 已準備好再次在營收、毛利率擴張與每股盈餘上交出雙位數成長。

Moving to our guidance for the fiscal first quarter ending, January 2, 2015, MACOM expects another quarter of solid performance, with revenue expected to be in the range of $112 million to $115 million. Non-GAAP gross margin is expected to be between 51% and 53% and non-GAAP earnings per diluted share between $0.33 and $0.36 on an anticipated 50 million shares outstanding.

接著談我們對截至 2015 年 1 月 2 日之會計年度第一季的財測指引，MACOM 預期將再度呈現穩健表現，營收預估介於 1.12 億至 1.15 億美元之間。非 GAAP 毛利率預估介於 51% 至 53%，非 GAAP 稀釋後每股盈餘預估介於 0.33 至 0.36 美元，假設流通在外股數為 5,000 萬股。

Operator? You may now open the call to questions.

接線員？你現在可以開放提問。

(Operator Instructions)

（接線員指示）

The first question comes from Quinn Bolton from Needham & Company.

第一個問題來自 Needham & Company 的 Quinn Bolton。

Hello. Congratulations on the nice results. John, wanted to start off with a little bit more information if you could on BinOptics. Could you give us a sense where they play? You also mentioned some capacity constraints in the industry. Is that affecting BinOptics and if so, are you going to have to spend CapEx to increase the production of their lasers?

你好。恭喜有不錯的成果。John，我想先請你多提供一些關於 BinOptics 的資訊。你能否讓我們了解他們主要切入的領域？你也提到產業有一些產能限制。這是否影響到 BinOptics？如果有，你們是否需要投入資本支出（CapEx）來提高他們雷射的產量？

Yes, thanks by the way, Quinn. Great question, very insightful. We've been tracking BinOptics for the better part of the last year or so. We were aware of the market -- industry dynamics, I should say in the laser space. They're one of three primary semiconductor laser suppliers in the world. The others being Mitsubishi and CyOptics, which was recently acquired by Avago, and what's been evolving is the acquisition of CyOptics was really an integration play for Avago, and Mitsubishi really has, let's just say that this application market space is not of strategic interest to Mitsubishi. I suspect it's rather old technology and not very profitable for them.

是的，順帶一提，謝謝你，Quinn。問題很好，也很有洞見。我們在過去一年左右的大部分時間都在追蹤 BinOptics。我們了解雷射領域的市場—應該說產業動態。他們是全球三大半導體雷射供應商之一。其他兩家是三菱（Mitsubishi）與 CyOptics（近期被 Avago 收購）。目前的演變是，Avago 收購 CyOptics 其實主要是整合布局；而三菱方面，坦白說，這個應用市場對三菱並非策略重點。我猜那對他們而言是較舊的技術，且獲利性不高。

In any case, what's evolved is BinOptics really stepped in with the latest, most modern technology, superior cost structure, great products, great performance, and we had noticed that they had been taking an inordinate share of reference design wins as well as customer selections and design wins, to the point where they've been posting actually, I think, close to 100% growth with sustainable models that could sustain as much as 50% growth over the next couple of years.

無論如何，事情的發展是 BinOptics 以最新、最現代化的技術、更優越的成本結構、很棒的產品與表現真正切入市場。我們注意到他們在參考設計（reference design）導入以及客戶選用與設計導入上，取得了不成比例的市占，甚至他們實際上，我想，已接近 100% 的成長，且其商業模式具可持續性，未來幾年可維持高達 50% 的成長。

Very nice profitability models in terms of gross margin and operating margins, consistent with our aspirations so accretive to our current model, and then the opportunity came where they needed to dramatically expand capacity. They were a VC-funded start-up by background, so it naturally came the time for a company like MACOM to acquire and scale the operational capability of the Company. And that's what we plan to do.

就毛利率與營業利益率而言，他們的獲利模型非常漂亮，與我們的目標一致，因此對我們目前的模型具增益效果。接著出現了一個機會：他們需要大幅擴充產能。他們背景是創投資助的新創公司，因此很自然地到了需要像 MACOM 這樣的公司來收購並擴大其營運能力的時點。而這正是我們計畫要做的。

Are they capacity constrained currently?

他們目前有產能受限嗎？

Yes.

有。

Okay.

好的。

They've been capacity constrained, the whole industry has been capacity constrained to the point where there's really been supply limitations in the access part of the market, but they also service big data centers, so high growth potential at the end-market level, again with suppliers that have been fading away, so they've got somewhat of an open playing field. To give you the sense of what we plan to do with them, our internal goals, which we are working to underpin, are you can think about integer multiples increases in capacity. So doubling in six months, quadrupling in a year, exponential growth potential and our sense through the customer diligence process is that could all just -- the revenues could scale accordingly. So it's a great upside possibility, even beyond their own internal aspirations.

他們一直有產能受限，整個產業也都產能受限，甚至導致接取端（access）市場出現供應限制。但他們也服務大型資料中心，因此終端市場層級具高成長潛力；再加上供應商逐漸淡出，使他們在某種程度上擁有更開放的競爭場域。讓你了解我們對他們的規劃與內部目標（我們正努力建立支撐）：你可以把它想成以整數倍數提升產能。也就是六個月內倍增、一年內四倍增，具指數型成長潛力；而我們透過客戶盡職調查流程的判斷是，營收也可能隨之相應擴張。因此這是一個很大的上行機會，甚至超出他們自身的內部目標。

Great, just two more questions on BinOptics then I'll hand it over to the next caller. BinOptics, are these lasers mostly going into things like PON? Is it more long haul 40,100 gig networks and can you talk a little bit about the synergies with the existing MACOM optical product portfolio? Then for Bob, Bob, is there any financial data you can share about BinOptics and how it comes into the models as we start to think about FY15 and FY16 models, some kind of revenue metric, gross margin target? Anything you could provide would be helpful, thanks.

很好，關於 BinOptics 我再問兩個問題就交給下一位。BinOptics 的雷射主要是用在像 PON 這類應用嗎？還是更多在長途（long haul）40G、100G 網路？另外能否談談與現有 MACOM 光學產品組合的綜效？再來給 Bob：Bob，你能否分享任何關於 BinOptics 的財務資料，以及當我們開始思考 FY15 與 FY16 模型時，它如何納入模型？例如某種營收指標、毛利率目標？你能提供的任何資訊都會很有幫助，謝謝。

So they're coming from the more access space that's been historically where the bulk of their revenue was, so 2.5-gig, 10-gig type PON applications, and again very nice profitability even in that more cost-driven space. But absolutely moved up now to 100-gig, a lot of fabulous design wins in the data center space. Actually a lot of the growth this year was driven by wireless backhaul, the buildout over in China, so fabulous position with the who's-who list over there. And then on the data center side, fabulous customer list in terms of the guys who are building out the big data centers. So really teed up for success.

他們主要來自接取端領域，歷史上那一直是他們營收的大宗來源，例如 2.5G、10G 這類 PON 應用；而且即便在這種更以成本為導向的領域，他們仍有非常不錯的獲利能力。但他們現在也確實往上走到 100G，在資料中心領域拿到很多很棒的設計導入。其實今年很多成長是由無線回傳（wireless backhaul）所帶動，來自中國那邊的建設擴張，因此在那裡與一線大廠名單中的客戶有極佳的布局。而在資料中心端，他們的客戶名單也非常出色，都是在建置大型資料中心的那些公司。所以真的已經為成功做好準備。

In terms of synergy with our portfolio, it was striking when we went out to do customer diligence for their five top customers, we ended up already with strategic, very personal relationships with executives at all five customers. Literally you can look at our designs for those customers and the lasers sitting right next to our TIAs and modulator drivers, so it's same customer, same applications, but literally doubling the available content for us. Bob?

就與我們產品組合的綜效而言，當我們針對他們前五大客戶進行客戶盡職調查時，令人印象深刻的是，我們其實已經與這五家客戶的高階主管建立了策略性、非常個人的關係。你真的可以看到我們在這些客戶的設計中，他們的雷射就放在我們的跨阻放大器（TIA）與調變器驅動器（modulator drivers）旁邊；也就是同一客戶、同一應用，但對我們而言可提供的內容價值幾乎直接翻倍。Bob？

Quinn, we're looking to close a transaction as -- probably towards the end of the calendar year here in our fiscal first quarter. We plan to update everybody with more specifics around the model at that time. But obviously it's very positive and it will deliver us above the double-digit growth, as John said in his remarks, both on the revenue top line as well as EPS.

Quinn，我們預計在—大概是今年曆年年底左右、也就是我們會計年度第一季—完成交易。我們計畫在那個時間點向大家更新更多關於模型的細節。但很明顯這是非常正面的，並且如 John 在談話中所說，無論是營收的上線（top line）或每股盈餘（EPS），都將帶來高於雙位數的成長。

Got it. Thank you.

了解。謝謝。

You're welcome.

不客氣。

The next question comes from Erik Rasmussen from Stifel.

下一個問題來自 Stifel 的 Erik Rasmussen。

Hi this is Erik calling in for Tore. Nice results and great gross margin.

你好，我是 Erik，代 Tore 來電。成果很不錯，毛利率也很棒。

Wanted to just one question on BinOptics and then kind of move on, but -- and then just some of the acquisitions in general. Are we talking about, in terms of revenue for them, are we in the just get a sense of just overall scale of the business. Are we kind of in the millions of dollars type of business, or is it something a little bit smaller than that? It sounds like when you say aspirational is that towards your 60/30 gross and operating margin target model?

想先就 BinOptics 問一個問題，然後再往下談——以及一般而言關於一些收購。我們在談他們的營收規模時，是不是大概想了解整體業務的量級。我們是在數百萬美元等級的業務，還是比那更小一些？聽起來你提到「aspirational（目標性）」是指朝向你們 60/30 的毛利率與營業利益率目標模型嗎？

Exactly. Good interpretation on the latter part of the question. I would say think about the revenue levels in the tens of millions, scaling through the tens of millions over the next year or two.

沒錯。你對問題後半段的解讀很到位。我會說，營收水準可以想成是數千萬美元等級，並且在未來一到兩年內會在數千萬美元的區間持續擴大。

Okay. That's annually, correct?

好的。那是按年度計算，對嗎？

Yes, annually.

是的，按年度計算。

And on the optical side, obviously most of the growth has been on the long haul, but what are you hearing from your customers with regards to metro and timing of this market? It sounded like a lot of the growth in the quarter was driven by Networks business.

在光學那一塊，顯然大部分成長都來自長途（long haul），但你們從客戶那邊聽到關於都會（metro）市場以及這個市場時點的看法是什麼？聽起來本季很多成長是由 Networks 業務帶動的。

Oh, there's no question our optical business is off to the races and this BinOptics move and the two other tuck-ins we talked about are all a process of doubling down. One of the things I firmly believe in is when you see the break out you pour it on and that's exactly what we're doing in the space. The customer wins, mega customer wins and all the right guys for all the right products with all the right profitability models, it's all strong up and to the right with, I would suspect to say, no losses.

噢，毫無疑問，我們的光學業務正快速起飛，而這次收購 BinOptics 以及我們提到的另外兩個補強型收購，都是在加碼投入。我堅信的一件事是，當你看到業務突破時，就要加大火力，而我們在這個領域正是這麼做的。客戶勝利、超大型客戶勝利，所有對的人、對的產品、對的獲利模型——一切都很強勁、持續向上；我甚至可以說，應該沒有任何失利。

We're batting a thousand against our traditional competitors. So doubling down is a logical thing to do. Broadening our footprint is a logical thing to do, and I can tell you, I happened to be in China last week as our team was out doing the customer diligence on BinOptics, and there's no question that this elevates us to yet another degree of strategic value to them. Solving the supply chain issues, for this critical component is a big, big, big deal and doing it with a high performance, high quality product is what it's all about.

我們對傳統競爭對手的勝率是百分之百。所以加碼是合乎邏輯的，擴大我們的版圖也是合乎邏輯的。我可以告訴你，我上週剛好在中國，當時我們團隊正在對 BinOptics 進行客戶盡職調查；毫無疑問，這讓我們對他們而言又提升到另一個層級的策略價值。解決這個關鍵元件的供應鏈問題是一件非常、非常、非常重要的事，而用高效能、高品質的產品來做到這一點，正是重點所在。

Great and then just on the other two acquisitions, it sounded like those were more of COGS or reduction, but were there any, is there any kind of revenue contribution baked into your outlook for the December quarter?

很好。那再問一下另外兩個收購，聽起來它們比較偏向於 COGS（銷貨成本）或成本降低，但你們對 12 月季度的展望中，有沒有把任何營收貢獻納入考量？

I would say to the first approximation, no. The context of the IKE Micro acquisition was, it is a spectacular build-to-print house, great technology, great people, right up the street here in Nashua, New Hampshire. It ended up with our break out in opto, we could pay back on the acquisition within a year, year and a half, less than a year, just on the back of bringing that build-to-print capability in house, just for that business, never mind all the technology and the capability that can now serve as an advanced development, advanced business for us, not just in optical but in aerospace and defense as well.

我會說，就第一近似而言，沒有。IKE Micro 收購案的背景是：它是一家非常出色的按圖製造（build-to-print）工廠，技術很棒、團隊很棒，就在新罕布夏州納舒厄（Nashua）這裡不遠。隨著我們在光電（opto）領域的突破，我們僅僅把這個按圖製造能力內製化、用在那個業務上，就能在一年到一年半內回收收購成本，甚至不到一年——更不用說所有技術與能力現在也能作為我們的先進研發、先進業務能力，不只服務光學，也能服務航太與國防。

It's the precursor and then as things scale into production, we can move them over to our Asian subs. So it has a lot of tangible value to us but it's not in the form of big revenue from other customers, at least not yet, but a strategic enabler for growth.

它是前置環節；接著當規模擴大進入量產時，我們可以把它們轉移到我們在亞洲的子公司。因此它對我們有很多可量化的價值，但至少目前還不是以來自其他客戶的大量營收形式呈現；它更像是支撐成長的策略性推動因素。

The other one, Photonic Controls, there's a lot of hype around silicon photonics out there in the industry. Photonic Controls is one of the companies, it's really a design house. This is isn't about buying IP and investing in your own proprietary silicon photonics capability. It's building upon the big guys who now have that under their belt and really bringing that to bear within our optical portfolio and again with the transceiver type devices, the PIC devises that we're talking about on the transmit and receive chains, it's just, again, doubling down and piling in the content in that space we're already addressing.

另一個是 Photonic Controls。業界對矽光子（silicon photonics）有很多炒作。Photonic Controls 是其中一家公司，但它其實更像是一家設計公司。這不是在買 IP、也不是投資建立我們自有的專有矽光子能力；而是建立在那些已經具備該能力的大型公司之上，並把這些能力真正導入我們的光學產品組合。再者，針對我們在發射與接收鏈路上所談的收發器（transceiver）類裝置、PIC 裝置，這同樣是再次加碼，把我們在這個已經在切入的領域中所提供的內容堆疊得更深。

Thank you very much. I'll jump back in.

非常感謝。我再回到隊列裡。

No problem, thanks.

沒問題，謝謝。

(Operator Instructions)

（接線員指示）

The next question comes from Mark Lipacis from Jefferies.

下一個問題來自 Jefferies 的 Mark Lipacis。

Great, thanks for taking my questions. The first one is for John. What's driving the break out in the optical business? Is it lower cost? Is it the systems coming down lower cost or is it just the demand for the bandwidth continues to grow?

很好，謝謝讓我提問。第一個問題問 John。是什麼在推動光學業務的突破？是成本更低嗎？是系統端成本下降嗎？還是只是頻寬需求持續成長？

Well the break outs are really twofold. One is, prior to the Mindspeed acquisition last year we had developed a great position in long haul modulator drivers, these are gallium arsenide and indium phosphide based modulated drivers. We had great customer footprint developing even prior to Mindspeed.

嗯，這個突破其實有兩個面向。第一，在去年收購 Mindspeed 之前，我們已在長途（long haul）調變器驅動器（modulator drivers）建立了很強的地位；這些是以砷化鎵（gallium arsenide）與磷化銦（indium phosphide）為基礎的調變驅動器。我們在收購 Mindspeed 之前就已經建立了很好的客戶版圖。

Once the Mindspeed team came in, the HPA portfolio came in with transimpedance amplifiers and Clock and data recovery devises and cross point switches, which are coming more from the access market and into big data centers and then both converge on the metro. So it's really all fronts breaking out simultaneously. In the prepared remarks, I talked about the 4k video SDI chip sets and that's one example. On the enterprise side, the CDRs that we have are doing a great job in terms of new customers, entirely new growth areas for that business, for both, obviously for MACOM but also the previous Mindspeed business. It's really break outs on all fronts, simultaneously.

Mindspeed 團隊加入後，HPA 產品組合也進來了，包含跨阻放大器（transimpedance amplifiers）、時鐘與資料恢復（CDR）裝置，以及交叉點交換器（cross point switches）；這些更多是從接取（access）市場延伸到大型資料中心，然後兩者在都會（metro）市場匯聚。所以其實是各個戰線同時突破。在事先準備的講稿中，我提到 4k 影片 SDI 晶片組，那就是一個例子。在企業端，我們的 CDR 在新客戶拓展方面表現非常好，對那個業務而言是全新的成長領域——當然對 MACOM 以及先前的 Mindspeed 業務都是如此。基本上是各個面向同時突破。

I think the common denominator in a lot of cases are the large telecommunications customers and I think, in fact I know, we're now front and center. Where MACOM was relatively unknown a couple years ago, we're now viewed as a strategic asset that's delivering various flavors of strategically important components. High value, so this is, for the most part, especially when you move beyond the access space, big iron so big ASPs, high profitability, high value, very sticky, long life cycles and so on, so exactly the kind of stuff that we aspire to. Again, to the extent we feel doubling down with more acquisitions is a very logical thing to do.

我認為在很多情況下的共同分母是大型電信客戶，而且我想——事實上我知道——我們現在已經站在舞台中央。兩年前 MACOM 還相對不為人知，但現在我們被視為一項策略性資產，能提供各種不同類型、具有策略重要性的元件。高價值，因此在大多數情況下，特別是當你超越接取領域時，都是「大鐵」（big iron）——也就是高 ASP（平均售價）、高獲利、高價值、黏著度高、生命週期長等等，正是我們所追求的那種業務。也因此，只要我們覺得透過更多收購來加碼，是非常合乎邏輯的事。

That's helpful, thank you.

這很有幫助，謝謝。

Then perhaps for Bob, could you just review the use of cash going forward? Sounds like you have some -- you're going to be, with BinOptics you'll be signing up for some CapEx uses. To the extent you can quantify that, that would be helpful. And do you have a target leverage ratio or something like this? How should we think about your balance sheet going forward? Should we expect you -- do you have a view of paying down the debt with the new cash or maybe continuing to lever up with more acquisitions? How should we think about that? Thank you.

接著可能問 Bob：你能否回顧一下未來現金的使用方向？聽起來你們有一些——隨著 BinOptics，你們會承擔一些資本支出（CapEx）。如果你能量化一下會很有幫助。你們有目標槓桿比率之類的嗎？我們應該如何看待你們未來的資產負債表？我們是否應該預期你們——對於新增現金，你們會用來償還債務，或是可能透過更多收購繼續加槓桿？我們應該怎麼理解？謝謝。

Mark, to the last question first, we target a comfortable leverage ratio of four times net cash and we're well within that with the acquisition of BinOptics here. Notwithstanding the overall discussion of expanding capacity here, we're still going to be in the general range of 4% of revenues on our overall CapEx for 2015.

Mark，先回答最後一個問題：我們的目標是維持一個舒適的槓桿比率，也就是淨現金的 4 倍，而在這次收購 BinOptics 之後，我們仍遠在這個範圍之內。儘管我們在討論擴充產能，但我們 2015 年整體 CapEx 仍會大致維持在營收的 4% 左右。

I would emphasize that our CapEx primarily is going to support expansion of the GaN capabilities here in Lowell as well as now indium phosphide in Lowell as well as in Ithaca, so it's all within our general financial model, our framework for reinvestment in the business. Short-term, from a cash perspective, the balance sheet, we have growing EBITDA with the acquisition of BinOptics and obviously, we will continue to look at acquisitions as the core element, one of the core elements of growing MACOM and so there are different opportunities to refinance what we have and I think we'll continue to pursue those as -- when the markets are available.

我想強調，我們的 CapEx 主要將用於支持在 Lowell 擴充 GaN 能力，以及現在在 Lowell 與 Ithaca 擴充磷化銦（indium phosphide）能力；這都在我們一般的財務模型與對業務再投資的框架之內。短期從現金與資產負債表角度來看，隨著收購 BinOptics，我們的 EBITDA 正在成長；而且很明顯地，我們會持續把收購視為推動 MACOM 成長的核心要素之一。因此在既有融資上也有不同的再融資機會，我想我們會在市場條件允許時持續推進。

If can add a little more color, too. One of the things that I failed to make clear is in Ithaca, New York, the BinOptics folks have a great factory currently producing the indium phosphide lasers. The first stage of capacity expansion has to do with adding a few tools, improving the operational efficiencies, using what I would suspect would be a little more mature and operational management approaches to maximizing yields, maximizing throughput and so on. The belief is, generally, that we could as much as double the laser capacity within six months just through those very few million dollars of CapEx.

如果可以的話，也再補充一點背景說明。我之前沒有講清楚的一點是，在紐約州伊薩卡（Ithaca, New York），BinOptics 團隊目前有一座很棒的工廠，正在生產磷化銦（indium phosphide）雷射。第一階段的產能擴充，主要是增加幾台設備、提升營運效率，並採用我認為會更成熟的營運與管理方法，以最大化良率、最大化產出吞吐量等等。一般的看法是，我們只要投入那幾百萬美元的資本支出（CapEx），在六個月內就能把雷射產能提高到最多接近翻倍。

The second thing that was very interesting that we found was our tool set here in Lowell, for our production facility, is 100% compatible with producing the lasers. There is again just a couple of additional tools, couple million dollars needed and we can replicate everything that will be in Ithaca, doubling yet again capacity and producing, yielding a dual source copy exact for these lasers which is a big, big deal to the telecommunications industry.

第二個我們發現、也非常有意思的是，我們在羅威爾（Lowell）的生產基地，其設備組合與生產雷射是 100% 相容的。同樣只需要再添購幾台額外設備、投入幾百萬美元，我們就能複製伊薩卡那邊的整套配置，再把產能翻倍，並且做出這些雷射的「雙來源（dual source）」完全複製（copy exact）版本，這對電信產業來說是非常、非常重要的。

As you can imagine, we don't breath earthquakes here but fires have been known to happen in factories and blizzards and what have you and having uninterrupted supply with multiple factories copy exact is a big selling point. So that synergy with our core competence and compound semiconductor manufacturing and very sophisticated stuff. This isn't just indium phosphide but this is black art laser production, is right in our strong suit.

如你所想，我們這裡不太會遇到地震，但工廠確實可能發生火災、暴風雪等等；因此，能夠透過多座工廠的完全複製（copy exact）來確保供應不中斷，是一個很大的賣點。這也與我們在複合半導體製造、以及非常高階製程方面的核心能力形成綜效。這不只是磷化銦而已，這是屬於「黑魔法」等級的雷射生產，正好是我們的強項。

That's very helpful. Thanks for the color, John and Bob.

這非常有幫助。謝謝你補充說明，John 和 Bob。

Thanks.

謝謝。

The next question comes from Blayne Curtis from Barclays.

下一個問題來自 Barclays 的 Blayne Curtis。

Hey. Can you hear me?

嗨，你們聽得到我嗎？

Yes. How are you doing?

聽得到。你最近怎麼樣？

Thanks. I'm doing all right. Busy week here. Great quarter. I just apologize if this was asked earlier, John, but I just was curious, the applications of the indium phosphide as far as other products of the synergies there.

謝謝，我還不錯。這週很忙。季度表現很棒。我先道歉一下，如果這個問題之前有人問過了，John，但我只是好奇，磷化銦在其他產品上的應用，以及那方面的綜效。

Sorry, the synergies and leverage with our side of the portfolio with BinOptics? Was that the question?

抱歉，你是問 BinOptics 與我們這邊產品組合之間的綜效與槓桿效益嗎？是這個問題嗎？

Would you have other semiconductor applications for the indium phosphide?

你們是否會把磷化銦用在其他半導體應用上？

Oh. Beyond the optical laser stuff. Yes, there's some very, very interesting things that BinOptics, as a privately held company, could not pursue, fairly explosive stuff like disk drives, reading heads, would be one of them. But they have actually GaN-based lighting drivers for automotive and other applications, as well as indium phosphide-based similar type things, so it is not just an optical communications technology.

喔，除了光學雷射相關之外。是的，確實有一些非常、非常有趣的方向，BinOptics 作為一家私人公司過去無法推進；其中一個相當具爆發性的領域是磁碟機的讀寫頭。但他們其實也有以 GaN 為基礎的照明驅動器，用於汽車與其他應用，同時也有以磷化銦為基礎、類似類型的產品，所以這不僅僅是光通訊技術。

They also talk a lot about silicon photonics, but the silicon photonics, they are on the other side and I'd describe it more as connectivity, so photonic connectivity. If you read about what Intel is interested and ST Micro is interested with silicon photonics, they are basically needing to get the point of using photonics for connectivity between chips and the etched facet technology that they have is ideal to service that application for various reasons. This has upside potential that's just geometrically exciting. Very, very exciting and we, I think we have the wherewithal to really bring that to fruition, whereas a private company they could not.

他們也常談到矽光子（silicon photonics），但矽光子其實是在另一端，我會把它描述為連結性，也就是光子連結（photonic connectivity）。如果你讀過 Intel 與 ST Micro 在矽光子方面的興趣，他們基本上是希望能用光子技術來實現晶片之間的連結，而他們的蝕刻端面（etched facet）技術因為多種原因非常適合服務這類應用。這有著幾何級數般令人振奮的上行潛力，非常、非常令人興奮；而我們我認為具備把它真正落地實現的能力，但私人公司做不到。

And then just second question, and once again I apologize if this is already, asked but on the GaN side, in terms of next milestones, clearly your competitor doing GaN on carbide laid out some applications in cable and base stations. Where are you in terms of ramping your supply partners and bringing products to market?

第二個問題，我也再次道歉如果之前已經問過：在 GaN 這邊，就下一個里程碑而言，你們的競爭對手在碳化矽基板上做 GaN（GaN on carbide）並提出了一些在有線電視與基地台的應用。你們在擴大供應夥伴、以及把產品推向市場方面，目前進展到哪裡？

Yes, so we've got the material supply under our belt with IQE. That's a big, big deal because material cost is actually the dominant factor when you talk about GaN on silicon versus GaN on silicon carbide, because it's the substrate material that costs so much. From a wafer processing standpoint, we've got the four-inch production already under our belt. We've got six-inch, eight-inch partners with wafers in process and I'm hopeful that in the coming month or few months we'll be able to come public with those. We're really aligning that supply chain with the key application requirements.

是的，我們已經透過 IQE 把材料供應這塊掌握住了。這非常、非常重要，因為當你比較矽基 GaN（GaN on silicon）與碳化矽基 GaN（GaN on silicon carbide）時，材料成本其實是主導因素，因為基板材料的成本非常高。就晶圓製程而言，我們已經具備 4 吋量產能力。我們也有 6 吋、8 吋的合作夥伴，晶圓正在製程中；我希望在接下來一個月或幾個月內能對外公開。我們正在把供應鏈與關鍵應用需求做更緊密的對齊。

You mentioned base stations, with GaN on silicon carbide, especially as you look forward as a replacement for more mainstream LDMOS, and as you start getting into 4G LTE moving to 4.5 and 5G, it really plays into an economic model that really requires the GaN on silicon cost structure, so one of the things, given my background in that space, I wanted to make sure is that I've got a supply chain that can scale properly. You're probably aware of the supply constraints in the base station world this year, so you can understand why customers consider supply chain flexibility paramount. That has to be done properly and the ground work has to be laid with the right people with the right economic incentives to have the capacity in place to service that upside. It just takes time to get those partners lined up with lines proving yielding wafers appropriately. We don't want to publicize something before it's ready, but lots of progress behind the scenes both on the customer front, as well as supply chain partner front.

你提到基地台；以碳化矽基 GaN 來說，特別是當你展望它用來取代更主流的 LDMOS，並且從 4G LTE 走向 4.5 與 5G 時，它其實會落在一個經濟模型上，而那個模型非常需要矽基 GaN 的成本結構。因此，基於我在這個領域的背景，我想確保的是我擁有一條能夠正確擴張的供應鏈。你可能也知道今年基地台市場的供應限制，所以你能理解為什麼客戶會把供應鏈彈性視為最重要的因素。這必須做對，必須與對的人一起把基礎打好，並設計正確的經濟誘因，讓產能到位以支撐那個上行需求。要把這些夥伴排好、並讓產線證明能穩定產出合格良率的晶圓，需要時間。我們不想在還沒準備好之前就對外宣傳，但無論在客戶端或供應鏈夥伴端，幕後都已有很多進展。

Great. That's all I have. Thanks.

很好。我就這些。謝謝。

Super. Thanks, Blayne.

太好了。謝謝你，Blayne。

I am showing no further questions. I would now like to turn the call back over to John Croteau.

我這邊顯示沒有其他提問了。現在我想把電話交回給 John Croteau。

Very good. A couple of final notes to close today's call. We'll be attending the Barclays conference in San Francisco on Tuesday, December 9, and we would like to welcome the opportunity to meet with any investors that are planning to attend. Additionally, we also plan to host investor meetings in Los Angeles and San Diego areas in early December. Please feel free to send us an e-mail at ir@macom.com if you're interested attending any of these meetings. Thanks again for joining us for today's call and I look forward to reporting our fiscal first-quarter results in early 2015. Operator, you may now disconnect the call.

很好。最後幾點說明，作為今天電話會議的結語。我們將於 12 月 9 日（週二）在舊金山參加 Barclays 會議，也希望能把握機會與任何計畫出席的投資人會面。此外，我們也計畫在 12 月初於洛杉磯與聖地牙哥地區舉辦投資人會議。如果你有興趣參加上述任何會議，歡迎寄電子郵件至 ir@macom.com 與我們聯繫。再次感謝各位參與今天的電話會議，我也期待在 2015 年初向各位報告我們會計年度第一季的業績。接線員，現在可以中斷通話。

Ladies and gentlemen, that does conclude the conference for today. Again, thank you for your participation. You may all disconnect. Have a good day.

各位女士、先生，今天的電話會議到此結束。再次感謝各位的參與。各位現在可以掛線。祝各位有美好的一天。