MACOM Technology Solutions Holdings, Inc. (MTSI) 2015 Q1 法說會逐字稿

Good afternoon, and welcome to the M/A-Com Technology Solutions first-quarter FY15 financial results conference call.

各位下午好，歡迎參加 M/A-Com Technology Solutions 2015 會計年度第 1 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, Monday, February 2, 2015.

提醒各位，本電話會議於今日（2015 年 2 月 2 日，星期一）進行錄音。

I would now like to turn the call over 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（MACOM 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' first-quarter 2015 earnings conference call. I'm Leanne Sievers, Executive Vice President of Shelton Group, MACOM 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 received a copy of the press release, you can obtain a copy on MACOM's website at www.MACOM.com under the Investor Relations section.

各位下午好，歡迎參加 M/A-Com Technology Solutions 2015 年第 1 季財報電話會議。我是 Shelton Group 執行副總裁 Leanne Sievers，亦為 MACOM 的投資人關係顧問。今天與會者包括 MACOM 總裁兼執行長 John Croteau，以及資深副總裁兼財務長 Bob McMullan。若您尚未收到新聞稿，可至 MACOM 網站 www.MACOM.com 的 Investor Relations（投資人關係）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, and answers to your questions, contain forward-looking statements, which 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 and quarterly report on Form 10-Q filed today. Any projections as to the Company's future performance represent management's estimates as of today, February 2, 2015; 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提問的回答，包含前瞻性陳述，並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存在重大差異，MACOM 依據 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）中關於前瞻性陳述的「安全港」條款主張保護，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說明，包括今日提交的 Form 8-K 與 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（2015 年 2 月 2 日）的估計；MACOM 不承擔未來更新此等預測之義務。

The Company's press release and management statements during this conference call will include discussions of certain non-GAAP measures and financial information. These financial measures, and the reconciliation of GAAP to non-GAAP results, are provided in the Company's press release, and related current report on Form 8-K, which was filed with the SEC today and can be found at the Investor Relations section of MACOM's website.

公司新聞稿以及本次電話會議期間管理層的陳述，將包含對若干非 GAAP 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 當期報告中；該報告已於今日向 SEC 提交，並可於 MACOM 網站的 Investor Relations（投資人關係）專區查閱。

For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 30 days in the Investor Relations section of MACOM's website.

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 Investor Relations（投資人關係）專區提供 30 天。

And 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 總裁兼執行長 John Croteau。John，請開始。

Thank you, Leanne. Welcome, everyone, and thanks for joining us today. I'll begin today's call with an overview of our first-quarter results for FY15, 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 second quarter of 2015.

謝謝你，Leanne。歡迎各位，感謝今天加入我們。我將先概述 2015 會計年度第 1 季的業績，接著把電話交給我們的財務長 Bob McMullan，由他更詳細地說明財務表現。之後我將以本季的執行情況概述作為事先準備發言的結尾，並提供 2015 會計年度第 2 季的財測指引。

Straight to the results: Revenue for the first quarter was $114.9 million, which included $2.1 million of contribution from BinOptics during the two-week stub quarter. Revenue excluding BinOptics would have been near the midpoint of our guidance. Non-GAAP gross margin was 53.7%, with non-GAAP net income of $18.7 million, or $0.38 earnings per diluted share. Similar to last quarter, non-GAAP gross margin and non-GAAP EPS benefited from a favorable mix in sales, weighted towards higher-margin products.

直接看結果：第 1 季營收為 1.149 億美元，其中包含 BinOptics 於兩週「短季度」（stub quarter）貢獻的 210 萬美元。若排除 BinOptics，營收將接近我們指引區間的中點。非 GAAP 毛利率為 53.7%，非 GAAP 淨利為 1,870 萬美元，或稀釋後每股盈餘 0.38 美元。與上季類似，非 GAAP 毛利率與非 GAAP EPS 受惠於有利的銷售組合，較偏向毛利率較高的產品。

During the quarter, similar to our peers, we saw broad-based seasonal softness across many of our end markets. One notable exception was our 100G Optical business, which grew 35% sequentially, excluding the contribution of BinOptics' stub quarter. Demand in aerospace and defense was also up slightly.

本季期間，與同業相似，我們在多數終端市場看到普遍的季節性走弱。其中一個顯著例外是我們的 100G 光學業務，在排除 BinOptics 短季度貢獻後，季增 35%。航太與國防需求也略有上升。

Multi-market and networks saw soft demand for our broad base of catalog products. Certain networks businesses, notably wireless infrastructure, were down due to what we believe was our customers' year-end inventory management, specifically in Asia. Automotive was also down due to anticipated seasonality with Ford.

多元市場與網路領域方面，我們廣泛的型錄產品需求偏弱。部分網路業務，尤其是無線基礎建設，因我們認為客戶在年底進行庫存管理（特別是在亞洲）而下滑。汽車業務也因 Ford 預期的季節性因素而下滑。

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

接下來我把電話交給 Bob，請他更詳細地回顧我們 2015 會計年度第 1 季的財務表現。

Thank you, John, and good afternoon, everyone. 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.

謝謝你，John，各位下午好。在我的說明過程中，以及 John 的發言中，所有損益表金額與百分比都將以非 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，已包含在今日的財報新聞稿中。

Revenue was $114.9 million, representing a sequential increase of 0.5%, compared to the reported revenues of $114.3 million in the prior quarter, and an increase of 37.6% compared to $83.5 million in the first quarter of FY14. The last action of integrating our recent acquisitions was to harmonize the revenue recognition practices to be consistent across the Company. As is standard practice, this change in estimate is being implemented in our first fiscal quarter.

營收為 1.149 億美元，較前一季報告營收 1.143 億美元季增 0.5%，並較 2014 會計年度第 1 季的 8,350 萬美元年增 37.6%。整合近期收購案的最後一項措施，是使營收認列作法在全公司範圍內一致化。依照慣例，此項估計變更於我們的第 1 個會計季度開始實施。

Certain agreements with distribution customers provided for rights of return and price protection until such time as the Company's products are sold by distributors to their customers. And until the quarter ended, January 2, 2015, for some distributors we recognized revenues from sales under such agreements when the distributor resold the product to its end customer; the sell-through basis of revenue recognition.

與經銷客戶的某些協議，規定在公司產品由經銷商售予其客戶之前，享有退貨權與價格保護。且在截至 2015 年 1 月 2 日止的季度之前，對於部分經銷商，我們在經銷商將產品轉售給其終端客戶時才認列該等協議下的銷售收入；亦即以「售出後認列」（sell-through）為基礎的營收認列。

Over a period of eight months, and during the first quarter ended 2015, we completed an evaluation of our revenue recognition methodologies relating to all distributors, and concluded that it was more appropriate to recognize revenue on sales to distributors at the time of shipment to the distributor; the sell-in basis of revenue recognition. Prior to the recent acquisitions, we had concluded that we had insufficient information, as well as limited experience, in estimating the effect of the right of distributors to return product and price protection; and accordingly, used the sell-through method of revenue recognition.

在八個月期間內，並於截至 2015 年第 1 季期間，我們完成了對所有經銷商相關營收認列方法的評估，並認為更適當的作法是在出貨給經銷商時即認列對經銷商之銷售收入；亦即以「售入時認列」（sell-in）為基礎的營收認列。在近期收購之前，我們認定在估計經銷商退貨權與價格保護影響方面，資訊不足且經驗有限；因此採用 sell-through 的營收認列方法。

We have recently concluded a study of three years of distributor-related transactions, in addition to our ongoing efforts to standardize our revenue recognition policies, and believe that the Company now has the sufficient data to reach the conclusion that sales and revenues relating to distributor transactions are capable of reasonable estimation. Accordingly, we implemented the sell-in method of accounting for sales to distributors.

我們近期完成一項涵蓋三年經銷商相關交易的研究，並配合我們持續標準化營收認列政策的努力，認為公司目前已具備足夠資料，可得出結論：與經銷商交易相關的銷售與營收可進行合理估計。因此，我們對經銷商銷售採用 sell-in 的會計處理方法。

We recorded a one-time adjustment during the first quarter ended January 2, 2015, related to this change, to recognize $17 million in previously deferred revenues; to recognize the related inventory costs of $4.4 million; and to establish a reserve of $4.5 million against distributor sales. And in determining the new reserve amount, we noted that distributor payments are due under agreed terms, and are not contingent upon a resale or any other matter, other than the passage of time.

我們在截至 2015 年 1 月 2 日止的第 1 季，針對此項變更記錄一次性調整：認列先前遞延的 1,700 萬美元營收；認列相關存貨成本 440 萬美元；並就經銷商銷售建立 450 萬美元的備抵。於決定新的備抵金額時，我們注意到經銷商款項係依約定條款到期支付，且不以轉售或任何其他事項為條件（除時間經過外）。

We have agreements with some distributors and customers from various programs, including price protection, obsolete inventory, new products, and stock rotation. Sales to these distributors and customers, as well as the existence of sales and set-up programs, are in accordance with the terms set forth in written agreements with these distributors and customers.

我們與部分經銷商及客戶就各類方案訂有協議，包括價格保護、呆滯存貨、新產品以及庫存輪轉（stock rotation）。對這些經銷商與客戶的銷售，以及銷售與建置方案的存在，均符合我們與該等經銷商及客戶之書面協議所載條款。

In general, credits allowed under these programs are capped, based upon individual distributor agreements. We recorded charges associated with these programs as a reduction of revenue at the time of sale, based upon historical activity. Our policy is to use a 12-month rolling historical experience rate, as well as an estimated general reserve percentage, in order to estimate the necessary allowance to be recorded. As noted in our press release, we refer you to our 10-Q filed today.

一般而言，這些方案下允許的折讓／抵減額度，會依各經銷商協議而設有上限。我們依歷史活動，在銷售時點將與這些方案相關的費用以營收減項方式入帳。我們的政策是採用 12 個月滾動的歷史經驗比率，並搭配估計的一般備抵百分比，以估計應認列的必要備抵金額。如同我們新聞稿所述，請各位參閱我們今日提交的 10-Q。

Inclusive of the aforementioned change in estimate, network revenue was $53.5 million, aerospace and defense was $24.9 million, automotive was $18.3 million, and multi-market came in at $18.2 million. Gross profit in the fiscal first quarter was $61.7 million or 53.7% of revenues, compared to $61.9 million or 54.1% of revenue in the prior quarter, and $38.9 million or 46.6% in the first quarter of FY14. Gross margin still benefited from selling higher gross-margin products, but down 40 basis points due to slightly different product mix than the fiscal fourth quarter.

包含上述估計變更在內，網路營收為5,350萬美元，航太與國防為2,490萬美元，汽車為1,830萬美元，多元市場為1,820萬美元。會計年度第一季毛利為6,170萬美元，佔營收53.7%，相較於前一季的6,190萬美元（佔營收54.1%），以及FY14第一季的3,890萬美元（佔46.6%）。毛利率仍受惠於銷售較高毛利產品，但因產品組合與會計年度第四季略有不同而下降40個基點。

In terms of operating expenses for the fiscal first quarter, total operating expenses were $34.6 million, compared to $35.2 million in the prior quarter, and $22.7 million in the prior-year quarter.

就會計年度第一季的營業費用而言，總營業費用為3,460萬美元，相較於前一季的3,520萬美元，以及去年同期的2,270萬美元。

Research and development expense for the first fiscal quarter was $18.5 million. This compares to R&D expense of $18.7 million in the prior quarter, and $10.9 million in the fiscal first quarter of 2014. R&D as a percentage of revenue represented 16.1% in the fiscal first quarter, compared to 16.3% in the previous quarter, and 13% in the prior-year quarter. The slight expense reduction was due to lower compensation expense, offset by the inclusion of BinOptics expenses.

會計年度第一季研發費用為1,850萬美元。相較之下，前一季研發費用為1,870萬美元，而2014會計年度第一季為1,090萬美元。研發費用佔營收比重在會計年度第一季為16.1%，相較於前一季的16.3%，以及去年同期的13%。費用小幅下降係因薪酬費用較低，但部分被納入BinOptics費用所抵銷。

Selling, general and administrative expenses for the fiscal first quarter were $16.1 million. This compared to SG&A expense of $16.5 million in the prior quarter, and $11.8 million in the prior year's quarter. SG&A as a percentage of revenue represented 14.1% in the fiscal first quarter, compared to 14.4% in the previous quarter, and 14.2% in the prior year's quarter. The slight expense reduction was due to lower compensation expense, partially offset by the inclusion of BinOptics expenses.

會計年度第一季銷售、一般及行政費用為1,610萬美元。相較之下，前一季SG&A費用為1,650萬美元，去年同期為1,180萬美元。SG&A佔營收比重在會計年度第一季為14.1%，相較於前一季的14.4%，以及去年同期的14.2%。費用小幅下降係因薪酬費用較低，但部分被納入BinOptics費用所抵銷。

Income from operation was $27.1 million or 23.6% of revenue, which compares to $26.7 million or 23.3% of revenue for the prior quarter, and $16.2 million or 19.4% of revenue in the prior year's quarter. Higher gross profits and margins drove continued improvement in operating income and margin in the fiscal first quarter.

營業利益為2,710萬美元，佔營收23.6%；相較於前一季的2,670萬美元（佔營收23.3%），以及去年同期的1,620萬美元（佔營收19.4%）。較高的毛利與毛利率推動會計年度第一季營業利益與營業利益率持續改善。

EBITDA, or earnings before interest, taxes, depreciation and amortization, was $30.6 million, up from $30 million in the prior fiscal quarter. Interest expense of $4.3 million in the fiscal first quarter increased slightly from $4.1 million in the fiscal fourth quarter, for additional borrowings to finance the BinOptics acquisition.

EBITDA（息稅折舊攤銷前盈餘）為3,060萬美元，高於前一會計年度季度的3,000萬美元。會計年度第一季利息費用為430萬美元，較會計年度第四季的410萬美元略增，係因為籌措資金以支應收購BinOptics而增加借款。

Turning to income taxes, our effective income tax rate for the fiscal first quarter was 18%. This tax rate compares to 23.5% in the prior fiscal quarter and in the year-ago quarter.

談到所得稅，我們會計年度第一季的有效所得稅率為18%。此稅率相較於前一會計年度季度及去年同期的23.5%。

Our fiscal net income was $18.7 million or $0.38 per diluted share, above our high range of our previous guidance, compared to fiscal fourth-quarter net income of $17.2 million or $0.35 per diluted share, and net income of $12.1 million or $0.25 per diluted share in the prior year's quarter. The share count to compute EPS was 49.2 million shares for the fiscal first quarter, 48.9 million shares for the fiscal fourth quarter, and 48.6 million shares in the fiscal first quarter of 2014. Fiscal first-quarter cash flow from operations was $2.1 million, compared to $15.6 million in the fiscal fourth quarter, and $2.3 million in the fiscal first quarter of 2014.

我們會計年度淨利為1,870萬美元，或稀釋後每股0.38美元，高於先前指引區間的上緣；相較於會計年度第四季淨利1,720萬美元（稀釋後每股0.35美元），以及去年同期淨利1,210萬美元（稀釋後每股0.25美元）。用於計算EPS的股數為：會計年度第一季4,920萬股、會計年度第四季4,890萬股，以及2014會計年度第一季4,860萬股。會計年度第一季營運活動現金流量為210萬美元，相較於會計年度第四季的1,560萬美元，以及2014會計年度第一季的230萬美元。

Turning to the balance sheet: At fiscal quarter end, our cash and cash equivalents were approximately $48.3 million. Outstanding long-term debt was $445.9 million, reflecting an additional $100 million of debt during the quarter relating to the acquisition of BinOptics for approximately $224.1 million net. Accounts receivable of $79.5 million compares to $75.2 million at the end of the prior quarter. Days sales outstanding was 62.9 days, compared to 59.8 days at the end of the prior fiscal quarter. BinOptics receivables added $10.3 million to the fiscal quarter balance.

接著看資產負債表：截至會計年度季度末，我們的現金及約當現金約為4,830萬美元。未償還長期負債為4億4,590萬美元，反映本季因以約2億2,410萬美元淨額收購BinOptics而新增1億美元負債。應收帳款為7,950萬美元，相較於前一季末的7,520萬美元。應收帳款週轉天數（DSO）為62.9天，相較於前一會計年度季度末的59.8天。BinOptics的應收款項使本會計年度季度餘額增加1,030萬美元。

Inventory was $89.2 million, compared to $73.6 million in the prior quarter. Inventory turns were 2.4 times, compared to 2.9 times in the prior fiscal quarter. BinOptics inventory added $17.5 million to the first-quarter balance.

存貨為8,920萬美元，相較於前一季的7,360萬美元。存貨週轉率為2.4次，相較於前一會計年度季度的2.9次。BinOptics存貨使第一季餘額增加1,750萬美元。

Capital expenditures in the fiscal first quarter were $3 million, or 2.6% of revenue, compared to 5.9% of revenue in the fiscal fourth quarter. Depreciation expense on property and equipment for the fiscal first quarter was approximately $3.5 million, and $3.3 million for the fiscal fourth quarter.

會計年度第一季資本支出為300萬美元，或佔營收2.6%，相較於會計年度第四季佔營收5.9%。會計年度第一季不動產、廠房及設備折舊費用約為350萬美元，而會計年度第四季為330萬美元。

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

我現在把電話交回給John，他將提供我們對FY15會計年度第二季的業務展望。

Thanks, Bob. I'd like to begin by providing an update on our recent acquisition of BinOptics. On December 15, 2014, we successfully completed the acquisition of BinOptics Corporation, and kicked off integration. We remain laser-focused on integrating the two teams and businesses -- so far, with no major surprises. This will be a transitional quarter for MACOM, as we continue to rationalize the sales channel, scale manufacturing, and consolidate management teams, operations and forecast systems.

謝謝你，Bob。我想先就我們近期收購BinOptics的進展提供更新。2014年12月15日，我們成功完成對BinOptics Corporation的收購，並啟動整合。我們仍高度聚焦於整合兩個團隊與業務——截至目前沒有重大意外。對MACOM而言，這將是一個過渡季度，因為我們將持續精簡銷售通路、擴大製造規模，並整併管理團隊、營運與預測系統。

After the announcement of our definitive agreement to acquire BinOptics, it became clear, literally overnight, that the strategic upside of the transaction would exceed our expectations. Having the right products at the right time to address a serious bottleneck and pain-point in our customers' supply chains in 2015, BinOptics has emerged as a potential catalyst for our networks business overall, vaulting MACOM to strategic vendor status in some of the largest telecommunications OEMs worldwide.

在我們宣布已簽署收購BinOptics的最終協議後，幾乎是一夜之間就清楚看到，這筆交易的策略上行空間將超出我們的預期。BinOptics在正確的時間提供正確的產品，以解決我們客戶於2015年供應鏈中的嚴重瓶頸與痛點，已成為我們整體網路業務的潛在催化劑，使MACOM在全球一些最大的電信OEM中躍升為策略供應商。

Since closing the deal on December 15, we've been in discussions with strategic customers regarding expanded relationships and cross-selling opportunities across all networks' product lines. We expect to see meaningful benefits from those negotiations as early as our third fiscal quarter this year.

自12月15日完成交易以來，我們已與策略客戶就擴大合作關係以及在所有網路產品線上的交叉銷售機會進行討論。我們預期最早在今年會計年度第三季就能看到這些協商帶來的顯著效益。

At the same time, we remain cautious for the first quarter or so of combined operations with BinOptics, as they transition from a privately owned, less-mature, hyper-growth company to a more large-scale operation within MACOM. We need to jump horses mid-gallop in the midst of ramping capacity to harmonize MRP production systems, forecasting, and general operations on SAP. We expect revenue growth for this new laser business to remain supply-limited through the remainder of FY15.

同時，對於與BinOptics合併營運的前一季左右，我們仍保持審慎，因為他們正從一家私人持有、成熟度較低、超高速成長的公司，轉型為MACOM內部更大規模的營運。我們需要在擴充產能的同時「疾馳中換馬」，以在SAP上協調MRP生產系統、預測與一般營運。我們預期這項新的雷射業務在FY15剩餘期間的營收成長仍將受限於供給。

Moving on, behind the scenes we've made great strides in realizing the vision of our GaN strategy. As we described at our Analyst Day last May, we believe that GaN will ultimately disrupt as much as 80% of our target markets. We've assumed a leadership position in driving the GaN technology transition, with the goal of enabling step-function increases in market share.

接下來，在幕後我們在實現GaN策略願景方面已取得重大進展。正如我們在去年5月的分析師日所述，我們相信GaN最終將顛覆我們目標市場中多達80%的領域。我們已在推動GaN技術轉換方面取得領導地位，目標是促成市佔率的階躍式提升。

We're in the process of finalizing supply agreements with manufacturing partners that we believe will meet the demanding supply chain requirements for our various target markets. We believe these agreements will unlock the requisite cost structure, capacity and scalability to displace incumbent silicon and gallium arsenide technologies with material impact beginning in 2016.

我們正著手完成與製造合作夥伴的供應協議，我們相信這些合作夥伴將能滿足我們各項目標市場嚴苛的供應鏈需求。我們相信這些協議將解鎖所需的成本結構、產能與可擴展性，並自2016年起以實質影響取代既有的矽與砷化鎵技術。

As you may have seen earlier this evening, we announced that we have commenced an underwritten public offering of common stock issued by the Company, as well as selling shareholders. We intend to use part of the net proceeds from this offering to repay $100 million of our outstanding borrowings under our revolving credit facility, and for general corporate purposes.

如同您可能在今晚稍早看到的，我們宣布已啟動由本公司及出售股東所發行普通股的包銷公開發行。我們擬將本次發行的部分淨收益用於償還我們循環信貸額度項下尚未償還借款中的1億美元，並用於一般公司用途。

To conclude my comments, I'd like to thank the team for another quarter of solid execution. We believe the BinOptics opportunity has proven to be larger than expected, and as we move into our second fiscal quarter, we'll begin realizing the benefits of the operational and financial synergies, as well as cross-selling opportunities, from that transaction, positioning us as the pre-eminent supplier for optical components in our corner of the industry.

在結束我的發言之前，我想感謝團隊在本季再次展現穩健的執行力。我們相信 BinOptics 的機會已證明比預期更大；隨著我們進入第二個會計季度，我們將開始實現該交易帶來的營運與財務綜效，以及交叉銷售機會，使我們在本產業領域中成為光學元件的首選供應商。

For the fiscal quarter ending April 3, 2015, MACOM expects another quarter of solid execution, with revenue expected to be in the range of $120 million to $124 million. Non-GAAP gross margin is expected to be between 51% and 54%, and non-GAAP earnings per diluted share between $0.39 and $0.42, based on 50 million shares outstanding.

截至2015年4月3日止的會計季度，MACOM 預期將再度呈現穩健執行，營收預估介於1.20億至1.24億美元之間。非 GAAP 毛利率預期介於51%至54%，以5,000萬股流通在外股數為基礎，非 GAAP 稀釋後每股盈餘預期介於0.39至0.42美元。

Operator, you may now open the call to questions.

接線員，您現在可以開放提問。

(Operator Instructions)

（接線員指示）

Our first question comes from the line of Blayne Curtis with Barclays.

我們的第一個問題來自 Barclays 的 Blayne Curtis。

Hi, guys, thanks for taking my question. First, John, you saw a big uptick in Aerospace and Defense in December. Was that what you were expecting? And what drove that?

嗨，各位，謝謝讓我提問。首先，John，你們在12月看到航太與國防（Aerospace and Defense）大幅上升。這是你們原本預期的嗎？是什麼因素帶動的？

And then when you look at going forward in your guidance for growth, obviously, BinOptics layers in. But what other segments are you seeing a rebound after the seasonal adjustment?

另外，展望你們對成長的指引，顯然會納入 BinOptics 的貢獻。但在季節性調整之後，你們還看到哪些其他部門出現回升？

Sure. Well on the A&D side, if you remember, that's a business that tends to bounce around quarter to quarter, and in many cases, surprises us on the downside, as well as upside. It tends to be lumpy because we have these radar programs, and you'll get -- depending on the timing of an order that comes in for a particular radar deployment, they can exceed our fullest expectations. So I think that bounce is within those normal conditions. The other part of your question was, other than (multiple speakers).

當然。就航太與國防（A&D）而言，如果你還記得，這項業務往往每季波動很大，很多時候不論是下行或上行都會讓我們意外。它之所以呈現不均勻（lumpy），是因為我們有這些雷達專案；依某個特定雷達部署訂單進來的時點不同，表現可能超出我們最樂觀的預期。所以我認為這次反彈仍在正常範圍內。你問題的另一部分是，除了（多位發言者）。

As you look at the March, obviously you get a full contribution from BinOptics. What other segments are you seeing up or down?

你看3月的情況，顯然會有 BinOptics 的完整貢獻。你們還看到哪些其他部門上升或下降？

The Ford business is going to come back very strong. It was something that we had been anticipating seasonal weakness, with the F-150 platform transition last quarter, and that's coming back next quarter. The other area is Multi-Market, and then modest recovery on the Network side, although continued growth on the 100 gigabyte Optical part of that.

Ford 業務將會非常強勁地回升。我們原本就預期上季因 F-150 平台轉換而出現季節性疲弱，而這部分將在下季回來。另一個領域是多元市場（Multi-Market），此外網路（Network）端也會溫和復甦，儘管其中 100G 光學相關仍將持續成長。

Great. And then just one following for Bob. Just on the change in sales recognition, I think the Q said $15.1 million over several periods. How much of an impact did that have for you in December?

很好。接著再追問 Bob 一題。關於銷售認列變更，我想 Q&A 提到跨數個期間合計1,510萬美元。這對你們12月的影響有多大？

The December impact is $15.1 million, and it's a change of an estimate because of the way we had to rework an estimate and get some historical trend information to be able to estimate potential returns and price adjustments. So that is a one-time change of estimate that goes through the P&L.

12月的影響就是1,510萬美元；這是估計變更，原因在於我們必須重新調整估計方式，並取得一些歷史趨勢資訊，以便估計可能的退貨與價格調整。因此，這是一項一次性的估計變更，會反映在損益表（P&L）中。

The net $15 million disclosed is an amount that includes a portion less the reserve that was on the books -- the $17 million that is on the books at the end of the FY14 period. And the additional amount to make $15 million is a current-period addition.

所揭露的淨額1,500萬美元，是一個包含已帳列準備金後的金額——也就是在 FY14 期末帳上已有的1,700萬美元準備金中的一部分。為了達到1,500萬美元的差額，另外的部分則是本期新增。

This is a one-time event that is no longer applicable. It's a GAAP transition, so all the disclosure around individual effect revolves around the necessary change and the required disclosure.

這是一個一次性事件，之後不再適用。這屬於 GAAP 的轉換，因此所有關於個別影響的揭露，都是圍繞必要的變更與規定的揭露要求。

Okay, thanks for that, guys.

好的，謝謝各位。

You're welcome.

不客氣。

Our next question comes from the line of Harlan Sur with JPMorgan.

下一個問題來自 JPMorgan 的 Harlan Sur。

Good afternoon, guys. Nice job on the quarterly execution. Just plainly, what are you guys baking into your revenue assumptions for the March quarter for BinOptics?

各位下午好。本季執行得很不錯。直接問，你們在3月季度的營收假設中，對 BinOptics 納入了多少？

I'm just trying to get a sense on how the underlying business is trending. If you could just give us some sense on the current gross margin profile for BinOptics as well.

我想了解基礎業務的趨勢。如果可以的話，也請提供一下 BinOptics 目前的毛利率概況。

Yes, so we don't -- as you know, Harlan, we don't disclose revenue by product line or business unit. Starting in the second fiscal quarter, they're fully integrated. If you look at the disclosures, you can see the pro forma trailing 12 months, which was about $50 million in revenue. So to the first approximation, you can extrapolate that.

是的，如你所知，Harlan，我們不揭露按產品線或事業單位區分的營收。從第二個會計季度開始，他們將完全整合。若你看我們的揭露，可以看到過去12個月的擬制（pro forma）數字，營收約為5,000萬美元。因此，作為第一近似，你可以據此推算。

The other thing I would say, as I said in the prepared comments, we're being a little cautious in these first quarters. We are ramping capacity for growth, although they've only been integrated from an operational standpoint for about the past 30 days and we're still within the production cycle -- about one complete turn of production.

另外我想說的是，如同我在準備好的發言中提到的，我們在最初幾個季度會稍微保守一些。我們正在擴充產能以支援成長；不過從營運角度來看，他們整合至今大約只有過去30天，而且我們仍在生產週期之內——大約完成了一個完整的生產循環。

And the caution really comes from the fact that we have to transform a lot of their manufacturing systems, frankly, from things like using Excel for manufacturing controls, over to professional MRP systems. Have to get them on SAP, and so on. So we want to be cautious, especially what's ahead of us this quarter, so that we don't get ahead of ourselves and disappoint.

而保守的原因主要在於，坦白說，我們必須改造他們許多製造系統，例如從用 Excel 做製造管控，轉換到專業的 MRP 系統；也必須導入 SAP 等。因此我們希望保持審慎，特別是面對本季接下來的工作，以免操之過急而讓市場失望。

Okay, thanks for that. And then Bob, we can probably back out of the guidance. But given the three acquisitions and also the usage of the $100 million revolver, could you just give us a range for the OpEx that we should be expecting in the March quarter? And the net interest expense you're baking into the guidance for March as well?

好的，謝謝。接著 Bob，我們大概可以從指引中推算出來。但考量三項併購以及動用1億美元循環信貸額度，你能否提供我們3月季度預期的營業費用（OpEx）區間？以及你們在3月指引中納入的淨利息費用假設？

Sure can. As you know, interest expense will be reduced from the current level because of the short repayment of debt in the period, but the interest drawn for the revolver was only three weeks in period of time. So if you were to look back to the previous quarter when just the Term B was outstanding, that would be representative of a range to expect going forward.

可以。如你所知，由於本期內短期償還部分債務，利息費用將較目前水準下降；但循環信貸額度的借款在本期實際只存在三週左右。因此，如果你回看上一季、當時只有 Term B 借款未償，那會是未來可預期區間的代表。

When you look at the overall expense levels quarter over quarter, we'll see an increase in R&D and SG&A, but almost in line with what you saw last year. We'll have the full quarter, from an R&D perspective, and some SG&A for BinOptics that is not fully reflected. So that's showing an uptick in the R&D and operating expenses. From a range of where we were in Q1 to where we were in Q2, it's in the $1 million range, plus or minus.

就整體費用水準的季對季變化而言，我們會看到研發（R&D）與銷售、一般及行政（SG&A）增加，但幾乎與你去年看到的增幅一致。我們將有一整季的研發費用，並且會納入一些尚未完全反映的 BinOptics SG&A。因此研發與營運費用會上升。從 Q1 到 Q2 的區間來看，大約是增加100萬美元左右，上下浮動。

Okay, so up about $1 million, plus or minus?

好的，所以大約增加100萬美元，上下浮動？

Yes.

是的。

Okay, great. And then just last question. Pre the closure of BinOptics, John, I think you said that this business was growing at 100% per year and that it could sustain 50% growth rates over the next few years. Post the closure, and obviously after a more detailed scrubbing of their pipeline, what's the confidence level around that 50% number?

好的，很好。最後一題。在完成 BinOptics 交易之前，John，我記得你說這項業務每年成長100%，並且在未來幾年可維持50%的成長率。交易完成後，且顯然在更深入檢視其銷售管線之後，對於50%這個數字的信心程度如何？

Extremely high. What we had -- and again, in our prepared comments, like I said, that we would end up supply-limited through the rest of this year, and frankly, into next year. By that, I mean demand is such that our biggest problem, frankly, right now, is harmonizing customer priorities. People are coming in looking for demand and looking to negotiate long-term supply agreements that are in excess -- and in some cases far in excess -- of our ability to deliver, even with the aggressive capacity ramp.

非常高。我們目前的情況是——同樣如我在準備好的發言中所說——今年剩餘時間我們最終會受到供應能力限制，坦白說，甚至延續到明年。我的意思是，需求之強使得我們目前最大的問題其實是協調客戶優先順序。客戶上門提出需求，並希望協商長期供貨協議，其數量超過——在某些情況下甚至遠遠超過——我們即便積極擴產後仍能交付的能力。

So certainly through the rest of this year, I would say every laser that we can produce, we'll ship. And doubling in six months, and quadrupling in 12 months is -- you can get a sense of what that would produce. The one caution I would say -- it's six months from closing.

所以可以肯定地說，在今年剩下的時間裡，我會說我們能生產的每一顆雷射都會出貨。而在六個月內產能加倍、在 12 個月內產能變成四倍——你可以想像那會帶來什麼樣的產出。我唯一要提醒的是——是從交割完成起算六個月。

So it's closing six months from December, and that's when we would have that doubling in capacity, and not the prior quarter. Where I would see the material jump, in terms of the capacity expansion, would actually be our fourth fiscal quarter. To some extent third, but especially the fourth. And then 2016 -- off to the races.

所以是從 12 月起算六個月後完成交割，屆時我們的產能才會加倍，而不是在前一個季度。我認為就產能擴張而言，真正明顯的跳升其實會出現在我們的第四個會計季度。第三季在某種程度上也會，但尤其是第四季。然後 2016 年——就全速前進了。

Thanks, guys.

謝謝，各位。

You're welcome.

不客氣。

Our next question comes from the line of Quinn Bolton with Needham & Company.

下一個問題來自 Needham & Company 的 Quinn Bolton。

Hi, John. It sounds like if you've got customers on the BinOptics side looking to negotiate long-term supply agreements, you're probably not too worried about double-ordering. But can you give us any sense about whether or not you think any of these forecasts you're seeing from customers, given the supply constraints, might be leading to any type of double-ordering here for BinOptics over the next several quarters?

嗨，John。聽起來如果 BinOptics 這邊的客戶正在洽談長期供應協議，你們大概不太擔心重複下單（double-ordering）。但你能否談談，你是否認為在供應受限的情況下，客戶給你們看到的這些預測，可能會在接下來幾個季度導致 BinOptics 出現某種形式的重複下單？

There's no question that there's posturing for unfair allocation for increased market share gains by the customer. So that is a concern. It's not a concern for the next two or three quarters, because there's such a gap between aspiration for allocation versus reality.

毫無疑問，客戶確實會為了在不公平的配給（allocation）下爭取更高的市占而擺出姿態。所以這是一個顧慮。但在接下來兩到三個季度，這不是主要顧慮，因為在「想要拿到的配額」與「現實可拿到的配額」之間存在很大的落差。

Secondly, I would suggest it's pretty clear to the customers and to ourselves that on a go-forward basis, from a laser supplier standpoint, you've got a couple of guys that are effectively de-committed to the area, where we're strategically committing and entering. So I'm confident that as we ramp capacity -- and ramping capacity also has a secondary benefit of COGS reduction -- that we'll be able to be able to continue taking share, to be able to keep up with our available capacity.

第二，我認為對客戶以及對我們自己而言都很清楚，從未來的雷射供應商角度來看，有幾家廠商實際上已經有效地對這個領域降低承諾（de-committed），而我們則是在策略上投入承諾並進入。我有信心，隨著我們提升產能——而提升產能也有一個次要好處是降低 COGS（銷貨成本）——我們將能持續拿下市占，並在我們可用產能範圍內跟上需求。

So it's definitely a latent concern. It's something we're having explicit discussions with our customers about. We have a two-tier customer model. You have the system OEMs, and then the optical modules guys sitting in between. And we discuss explicitly with both, how much of which product is going to which OEM. So it's definitely a complex and an interesting challenge.

所以這確實是一個潛在的顧慮。我們也正在與客戶進行明確的討論。我們採用兩層客戶模型：上層是系統 OEM，然後中間是光學模組廠。我們會與兩邊都明確討論，各種產品各有多少會流向哪一家 OEM。所以這確實是一個複雜而且很有意思的挑戰。

Appreciate the detail. And then just a couple of follow-up questions. In the prepared comments, you mentioned seeing some broad-based weakness in the December quarter. It sounds like a lot of that might have been inventory -- certainly your Automotive business, and I think you said Networks might have seen some inventory. As we pass the New Year, can you talk about whether you're seeing better order trends, post-December 31?

感謝你提供這些細節。接著再問兩個追問。在事先準備的評論中，你提到 12 月季度看到一些廣泛性的疲弱。聽起來其中不少可能是庫存因素——你們的車用業務，還有我記得你說網路（Networks）可能也有一些庫存。跨過新年之後，你能談談 12 月 31 日之後是否看到更好的訂單趨勢嗎？

And then just lastly, on the radar business. At Analyst Day, you talked about a lot of the active radar programs that are off in the future. Can you give us some sense, are those -- do you think you'll see revenue kicking in this fiscal year? Or is the MPAR and ASA radar really more a FY16 revenue driver? Thank you.

最後一個問題，關於雷達業務。在分析師日，你談到很多主動式雷達專案都在更遠的未來。你能否讓我們了解一下：你認為這些專案會在本會計年度開始貢獻營收嗎？還是 MPAR 與 ASA 雷達更像是 FY16 的營收驅動因素？謝謝。

Sure. Let me address the second part of the question first, while it's on the top of my mind. The Empire program and derivatives thereof is moving from the advanced development phases that we did in conjunction with MIT Lincoln Labs into commercial deployments, for both defense as well as civil use. These are real programs that customers are actively bidding and the government is awarding. So we are going to see material revenue from those in the form of early production orders and additional field trials in our third and fourth fiscal quarter this year.

當然。我先回答第二部分，趁我腦中還很清楚。Empire 專案及其衍生專案，正從我們與 MIT Lincoln Labs 共同進行的先進開發階段，走向商用部署，涵蓋國防以及民用。這些都是真實的專案，客戶正在積極投標，政府也在授標。因此，我們將在今年的第三與第四個會計季度，以早期量產訂單與更多現地測試（field trials）的形式，看到可觀的營收。

That's already cooked into our growth plan. And perhaps as early as the fourth fiscal quarter, but absolutely 2016. That will turn an additional inflection point in our growth trajectory, as those programs turn on. Again, for both defense, as well as civil use -- civil programs. So that's going to turn into a very exciting thing as we get into the latter part of this calendar year.

這已經納入我們的成長計畫中。也許最早在第四個會計季度，但肯定在 2016 年。當這些專案啟動時，將為我們的成長軌跡帶來另一個拐點。再次強調，涵蓋國防以及民用——民用專案。因此，隨著我們進入今年下半年，這會變成一件非常令人振奮的事。

On the former part of your question about where we're seeing order patterns and so on, there's no question that there was true seasonality in the fourth calendar quarter -- our first fiscal quarter. One of the things we didn't fully appreciate was, we saw something that I had seen in my previous lifetimes, which is end-of-the-calendar-year inventory stick handling among Asian OEMs in the Network segment. And also seasonal weakness that others have reported in the broad-based RF microwave segment as well.

至於你前半段的問題，關於我們看到的訂單型態等等，毫無疑問，在曆年第四季——也就是我們的第一個會計季度——確實存在真正的季節性。我們沒有完全預期到的一點是，我們看到一種我在過去職涯中見過的現象：網路（Network）領域的亞洲 OEM 在曆年年底進行庫存調整（inventory stick handling）。此外，在更廣泛的 RF 微波領域，也出現了其他公司所提到的季節性疲弱。

We're told by a number one distributor in that space, we're the number one line, that our POS actually held up better than their corporate average. Which was encouraging, because it's all relative, right? But nonetheless, the order patterns have picked up and are fully supporting the outlook that we communicated in the guidance. So I think I would consider second quarter a very nice progression, and then third and fourth, it's shaping up to be very solid quarters.

該領域的一家第一大經銷商告訴我們——我們是他們的第一大產品線——我們的 POS（銷售點銷售）其實比他們公司整體平均表現更好。這令人鼓舞，因為一切都是相對的，對吧？但無論如何，訂單型態已經回升，並且完全支撐我們在財測指引中所傳達的展望。所以我認為第二季會是一個非常好的延續進展，而第三與第四季看起來會是非常穩健的季度。

Great, thank you.

很好，謝謝你。

You're welcome.

不客氣。

Our next question comes from the line of Mark Lipacis with Jefferies.

下一個問題來自 Jefferies 的 Mark Lipacis。

Thanks for taking my question. First one on BinOptics. Can you give us a sense of how high is the intellectual property or patent barrier you have on the Etch Facet laser technology? Is this something that somebody else could come in and duplicate? Or do you think the moat is high here? And on the same topic of BinOptics, could you help us understand, what is the opportunity for bundling the lasers with the amps or the CDRs in order to get more -- to try to get leverage on the opportunity?

謝謝讓我提問。第一個問題關於 BinOptics。你能否讓我們了解一下，你們在 Etch Facet 雷射技術上的智慧財產或專利門檻有多高？這是否是其他人可以進來複製的東西？還是你認為這裡的護城河很深？同樣在 BinOptics 這個主題上，你能否幫我們理解，把雷射與放大器（amps）或 CDR 綁在一起（bundling）的機會有多大，以便獲得更多——也就是嘗試在這個機會上取得更大的槓桿？

Yes, so I should point out, Alex Lafarge, CEO of BinOptics, who is staying on, hopefully, in perpetuity -- I think Alex would say that he is -- actually has a background in IP management at IBM, so he's extremely adept. He built a very professional minefield of 35 patents, and more importantly, a whole bunch of intellectual property in the form of trade secrets. So the moat, as you described it, is extremely deep and extremely wide.

是的，所以我應該指出，BinOptics 的執行長 Alex Lafarge 會繼續留任，希望是永久——我想 Alex 會說他確實是——他其實有在 IBM 做智慧財產管理的背景，所以他非常擅長。他建立了一個非常專業的「雷區」，有 35 項專利，更重要的是，還有大量以商業機密形式存在的智慧財產。因此，如你所說的護城河，既非常深也非常寬。

Not that others couldn't attempt to do it, but it took BinOptics, I think, 14 years to get to the point where they are. Others might be able to do it in a fraction of the time if they're better resourced. But even then, you're talking about years away. So we feel it's a very unique position, and for the foreseeable future, they've got an unequivocal lead.

並不是說其他人不能嘗試去做，但 BinOptics 我想花了 14 年才走到今天這個程度。其他人如果資源更充足，或許能用更短的時間做到。但即便如此，你談的仍然是以「年」為單位的時間。所以我們認為這是一個非常獨特的地位，在可預見的未來，他們擁有無可爭辯的領先。

And I should also point out, they ran lean as a privately held company, venture capital-funded. We are increasing the commitment to R&D, to be able to distance their IP position, be able to drive the cost structure, to be able to support the economics, as they move into data centers. I can't remember if the last time we spoke, I had gotten a comment, but we had a major, mega-Chinese OEM that the VP of Global Procurement mentioned. Unit demand in data centers, they expect will be 100 times -- two orders of magnitude bigger than current demand in access.

我也要指出，作為一家私人持有、由創投資金支持的公司，他們過去一直以精實方式運作。我們正在加大對研發的承諾，以便拉開他們的 IP 位置差距、推動成本結構改善、並在他們進入資料中心時支撐其經濟性。我不記得上次我們談話時我是否提過，但我們有一家大型、超大型的中國 OEM，其全球採購副總裁提到：在資料中心的單位需求，他們預期將是目前接入（access）需求的 100 倍——也就是大兩個數量級。

So I wouldn't pretend that the economics remain the same. We want to make sure we get out in front with a lot of aggressive innovation in the form of cost reduction, to be able to support that, as well as to be able to support a very nice gross margin model on our business in perpetuity.

所以我不會假裝經濟性會維持不變。我們希望透過大量且積極的創新，尤其是成本降低，提前布局以支撐那樣的需求；同時也能在長期（in perpetuity）支撐我們業務非常好的毛利率模型。

In terms of your question about the bundling, I made the comment in the prepared remarks about -- literally overnight. What happened was, after we announced the definitive agreement, while we were sleeping here, and while in the middle of business over in China, we had all of the major OEMs and ODMs calling, looking for executive meetings to open the dialogue, and them proposing bundling. That's bundling, indeed, the CDRs and laser drivers and TIAs in that application.

就您關於綑綁銷售（bundling）的問題而言，我在事先準備的發言中提到過——真的是一夜之間。事情是這樣的：在我們宣布簽署最終協議之後，當我們這邊在睡覺、而中國那邊正值工作時間時，所有主要的 OEM 與 ODM 都打電話來，要求安排與高層的會議以開啟對話，並且由他們提出綑綁方案。這確實就是綑綁，也就是在該應用中把 CDR、雷射驅動器以及 TIA 綁在一起。

But in the case of the system OEMs, they're talking about broader agreements, where negotiating greater share in things like wireless backhaul -- for that matter, GaN replacement feral D mods and 4G LTE base stations. And that's the reason why I said a catalyst for our networks business overall. I mean, BinOptics is shaping up to be a gold mine.

但就系統 OEM 而言，他們談的是更廣泛的協議，例如在無線回傳（wireless backhaul）等領域談判取得更高的份額——甚至包括 GaN 替換既有的 LDMOS（laterally diffused MOS）模組以及 4G LTE 基地台。這就是我說它會成為我們整體網路事業催化劑的原因。我的意思是，BinOptics 正逐漸成為一座金礦。

That's very helpful, thanks. And a follow-up, if I may. On the 100-gigabyte optical, components were up 35% sequentially. Is it fair to assume that, that has nothing to do with BinOptics? And can you give us a sense of the size of that business? Thank you.

這非常有幫助，謝謝。若可以的話我再追問一個。關於 100G 光學，元件營收季增 35%。是否可以合理推論這與 BinOptics 無關？另外您能否讓我們了解一下這項業務的規模？謝謝。

Yes, I've got to be careful. Again, our policy is not to break down our business quantitatively by product line. But it is absolutely getting to be material. It may be our largest in our networks business, relative to what was previously cable and wireless infrastructure, so it's not immaterial. And as you can imagine, 35% growth is substantial.

是的，我必須小心。再次強調，我們的政策是不按產品線定量拆分披露業務。不過它確實正變得相當重要。相較於先前以有線與無線基礎設施為主的網路業務，它可能已是我們網路業務中最大的項目之一，因此絕非無足輕重。而且如您所見，35% 的成長幅度相當可觀。

That had absolutely zero impact from BinOptics, and that only came in, in the mid-quarter, or towards the end of the quarter, and certainly no ability to negotiate bundles, whatsoever. So the way I would put it is, the business we had in 100-gigabyte optical that even preceded Mindspeed, is flying off to the races.

那部分完全沒有受到 BinOptics 的任何影響；BinOptics 只是在本季中段或接近季末才併入，而且也完全沒有任何能力去談綑綁。換句話說，我們在 100G 光學上的業務——甚至在 Mindspeed 之前就已存在的那部分——正快速起飛、表現非常強勁。

Mindspeed accelerated that. They're succeeding; they met all of their growth targets coming into the Company from a year ago. And now the BinOptics just puts it into overdrive. So everything standalone is pulling its own weight; everything together looks even better.

Mindspeed 讓這個趨勢加速。他們做得很成功；他們達成了在一年前併入公司時所設定的所有成長目標。而現在 BinOptics 更是讓它進入超高速。也就是說，各個獨立業務都能各自扛起責任；合在一起看起來就更好了。

Great, thank you very much.

很好，非常感謝。

You're welcome.

不客氣。

Our next question comes from the line of Steve Smigie with Raymond James.

下一個問題來自 Raymond James 的 Steve Smigie。

Great, thanks a lot. I was hoping you guys could comment a little bit more on the Mindspeed business standalone. I think data center has been pretty strong. I was hoping you could provide more detail if CDR is keeping up with that general trend?

很好，謝謝。我希望你們能再多談一點 Mindspeed 單獨的業務。我認為資料中心一直相當強勁。我想請你們提供更多細節：CDR 是否也跟上了這個整體趨勢？

Sure. So the high-performance analog, the HPA team, that business unit which was previously known as Mindspeed -- the artist previously known as Mindspeed -- delivered on their plan coming in. I think it was 13% growth year on year.

當然。所以高效能類比（high-performance analog，HPA）團隊——也就是先前稱為 Mindspeed 的事業單位（「前身為 Mindspeed 的那位藝名」）——按計畫交付成果。我記得年增大約 13%。

The difference was, the mix was more favorable. They had come in with a plan for some relatively consumer-ish type products. That demand did not materialize, but was instead replaced with upside on the enterprise side.

差異在於產品組合更有利。他們原本的計畫包含一些相對偏消費型的產品，但那部分需求並未實現，反而由企業端需求的上行所取代。

They've gotten a lot more traction quicker than what they anticipated across both data centers, as well as the broadcast video. They've got a great product position, a lead position in that segment. So it's looking all good. Did that answer the question?

他們在資料中心以及廣播視訊兩個領域的進展都比預期更快、取得更多動能。他們的產品定位很好，在該細分市場也處於領先地位。所以整體看起來都很不錯。這有回答到您的問題嗎？

Yes. And a question on legacy components business. Is that primarily just used as a cash cow at this point, or what's the thought on that business?

有。再問一個關於傳統元件（legacy components）業務的問題。那主要只是被當作現金牛（cash cow）在經營嗎？或是對這項業務的想法是什麼？

Yes, our base business -- we have got a great slide in our investor deck I'd refer you to, which is a stacked bar chart that shows the break-out of our business over the past two years -- revenue by gross margin. We went from about 50% to about a third of our business now, as the sub-50% business grew slightly. That's really the old legacy stuff. It's a great cash cow business. It's something we don't want to see deteriorate. In fact, taking incremental share is a great drop-through. So that is absolutely a cash cow.

是的，我們的基礎業務——我會請您參考我們投資人簡報中的一張很棒的投影片，是堆疊長條圖，顯示過去兩年我們的業務拆分——按毛利率區間的營收。我們從約 50% 下降到現在約三分之一的業務占比，而低於 50% 毛利率的業務略有成長。那基本上就是舊的傳統產品。這是一門很好的現金牛業務。我們不希望它惡化。事實上，額外拿到一些市占會帶來很好的增量貢獻。因此它絕對是一頭現金牛。

At the same time, a lot of our investments over the recent years and going forward are going to be refreshing our catalog. They are refreshing our catalog. And we're building a new business built on top of that at the 70% gross margin level. That tends to take long time for instance. So it's really a time-dimensional answer, is the easiest way to put it.

同時，我們近年以及未來的許多投資都將用於更新我們的產品目錄（catalog）。我們正在更新目錄，並在其上建立一個毛利率約 70% 的新業務。這類事情通常需要很長時間。所以最容易的說法是：這是一個隨時間推進的答案。

If I could just slip one more quick one in. As you bring GaN on silicon into the base station, can you talk about your dollar content opportunity there?

如果我可以再快速插問一個：當你們把矽基 GaN（GaN on silicon）導入基地台時，能談談你們在那裡的單機價值量（dollar content）機會嗎？

Yes, well it's difficult. Depends upon the architecture of the PA on the system. So the best way I'd try to answer the question in spirit is, it's an $800 million market. The two primary players are NXP and Freescale. Infinion is a distant third. I think it's probably 40 -- 45, 45, 10, in terms of market share.

可以，但這很難回答，因為取決於系統中功率放大器（PA）的架構。所以我用符合問題精神的方式回答：那是一個 8 億美元的市場。兩個主要玩家是 NXP 與 Freescale。Infineon 是遙遠的第三名。我認為市占大概是 40、45、45、10 這樣的分布。

And you can argue about whether the macrocell base station is growing or declining in the future -- depends upon what crystal ball you want to look at. But 100% of that is actually a target for displacement with the GaN on silicon. So for us it's a big, fat juicy target.

而且你也可以爭論未來宏蜂巢（macrocell）基地台是成長還是衰退——取決於你想看哪一顆水晶球。但其中 100% 實際上都是矽基 GaN 可用來取代的目標。因此對我們而言，這是一個又大、又肥、又多汁的目標。

Okay, thank you.

好的，謝謝。

You're welcome.

不客氣。

Our next question comes from the line of Tore Svanberg with Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

Yes, thank you. The first question is on gross margin. Gross margin was up about 700 basis points year over year. It looks like it's going to take a little bit of a breather here because of the mix, maybe the Automotive contribution taking it down a little bit. But as we look beyond the March quarter, should we continue to expect pretty steady gross margin expansion every quarter?

是的，謝謝。第一個問題關於毛利率。毛利率年增約 700 個基點。看起來因為產品組合的關係，這裡可能會稍微喘口氣，例如汽車（Automotive）的貢獻可能會把毛利率拉低一些。但展望 3 月季度之後，我們是否仍應預期每一季毛利率都會相當穩定地擴張？

Yes, absolutely. What you're going to see is a lot of growth kicking in, in the second half of the year, realizing our growth plan for the year. And these are relatively soft quarters, the first and second quarter. That growth that will be kicking in is very heavily skewed towards the high-margin part of the portfolio, the new products. So our usual mix story is there.

是的，絕對如此。你會看到今年下半年會有大量成長動能進來，以實現我們今年的成長計畫。第一季與第二季相對是較疲弱的季度。接下來啟動的成長將高度偏向產品組合中高毛利的部分，也就是新產品。因此我們一貫的組合改善故事仍然成立。

The other thing that I'll be interested to see how it materializes is, as we increase capacity on the BinOptics portfolio, there's a lot of juice in there for gross margin improvement. Because if you double your capacity off the existing, in terms of improving yields, it's a direct cards reduction or margin improvement.

另外一件我也很想看看會如何落地的是：當我們提升 BinOptics 產品組合的產能時，毛利率改善的空間很大。因為如果你在既有基礎上把產能加倍、同時提升良率，那就是直接的成本下降或毛利率提升。

So I think we've got a pretty healthy road map, especially depending on what the trajectory you assume to be for the BinOptics business. That could be a real lift, in terms of the gross margin, through the second half of the year and into 2016.

所以我認為我們有一個相當健康的路線圖，尤其取決於你對 BinOptics 業務成長軌跡的假設。就毛利率而言，這可能在今年下半年到 2016 年帶來明顯的拉升。

Very good. And John, I look at the optical revenue -- its obviously becoming a bigger percentage of your revenue -- and I suspect the momentum there last year was primarily 100-gigabyte in long haul. But as we look at calendar 2015, should we start to think about some other applications and markets contributing to the momentum there? I'm thinking maybe 100-gigabyte penetrating the metro, obviously coherent continuing its momentum. Anything we can point there to model the continuous momentum in optical?

很好。John，我看光學營收——顯然正占你們營收更大的比重——我猜去年那股動能主要來自長途（long haul）的 100G。但展望 2015 年曆年，我們是否應開始考慮其他應用與市場也會對這股動能有所貢獻？例如 100G 滲透到都會網（metro）、相干（coherent）持續維持動能。對於在光學領域持續動能的建模，有沒有什麼方向可以指出？

I would say, first of all, data center is going to be a key driver, in terms of growth. If you look at the BinOptics revenue, a lot of the growth last year and a lot of growth this year will actually be fiber backhaul from mobile infrastructure, all layering on top of the business in the day, and the HPA guys have in-access, so fiber-to-the-home. That was a growth driver, but then it starts transitioning over to data center, and that's where the upside really gets interesting. Not that the growth isn't nice even before that.

我會說，首先，資料中心將是成長的關鍵驅動因素。若你看 BinOptics 的營收，去年很多成長以及今年很多成長其實會來自於行動基礎設施的光纖回傳（fiber backhaul），這些都疊加在既有業務之上；而 HPA 團隊在接入端也有布局，例如光纖到府（fiber-to-the-home）。那曾是成長驅動，但接著會開始轉向資料中心，而那才是上行空間真正變得有趣的地方——當然，在那之前的成長也已經很不錯了。

But the other number that I'd share is, our optical business, of all forms, all frequencies, all segments, is approaching 30% of revenues. I think last quarter it was 28%, by calculation. So it's a material part of our business now, and you can see you'll be able to see that growth really materialize. The growth on 30% is going to be a real kicker.

但我還想分享的另一個數字是，我們的光學業務——涵蓋各種形式、各種頻率、各個細分市場——正接近營收的30%。我認為上季按計算是28%。所以它現在已是我們業務中相當重要的一部分，而且你會看到那個成長會真正具體地顯現出來。以30%為基礎的成長將會是很大的推動力。

Very good. Just one last question. I know you haven't talked too much about your cable business the last few years, for obvious reasons, but there is an upgrade cycle coming here pretty soon, which is DOCSYS 3.1. I'm just wondering if we should start to think about that infrastructure build-up being a good growth opportunity for the cable business some time soon?

非常好。最後一個問題。我知道過去幾年你們基於顯而易見的原因，較少談到有線電視（cable）業務，但這裡很快會迎來一個升級週期，也就是DOCSYS 3.1。我想請教，我們是否應該開始把這波基礎設施建置視為有線業務在不久的將來的一個良好成長機會？

In terms of top line, it won't appear as a growth business, because it's offsetting decline in set-top box. Consistent with the de-emphasis on low-margin parts of our business, we did not follow the DOCSYS 3.1 set-top box requirements. That tends to be one of the drags on our gross margin, historically. And all of the investment emphasis went over to infrastructure -- so DOCSYS 3.1, power amps, and so on -- and line amps.

就營收（top line）而言，它不會呈現為一個成長型業務，因為它是在抵消機上盒（set-top box）的下滑。與我們淡化低毛利業務部分的策略一致，我們沒有去追隨DOCSYS 3.1機上盒的需求。歷史上那往往是拖累我們毛利率的因素之一。而所有投資重點都轉向了基礎設施——也就是DOCSYS 3.1、功率放大器（power amps）等等——以及線路放大器（line amps）。

So yes, there is growth in that part, but it's offset at the top level. Our plan for cable is actually relatively flat. The material benefit will be a mix shift from low-margin to high-margin. So it will be still a driver in EPS and operating margins.

所以是的，那一塊確實有成長，但在整體營收層面被抵消了。我們對有線業務的規劃其實相對持平。實質的好處會來自產品組合轉移（mix shift），從低毛利轉向高毛利。因此它仍將是EPS與營業利益率的驅動因素。

Very helpful. Thank you, John.

非常有幫助。謝謝你，John。

You're welcome.

不客氣。

Our next question comes from the line of Mark Delaney with Goldman Sachs.

下一個問題來自高盛（Goldman Sachs）的Mark Delaney。

Yes, good afternoon, and thanks very much for taking the questions. To start, I have two clarification questions around BinOptics. First, when you talk about the production of BinOptics doubling in roughly six months, maybe you could just help us beyond that -- how long it takes from production until you can start to generate revenue off of that increased capacity?

是的，下午好，也非常感謝讓我提問。首先，我有兩個關於BinOptics的釐清問題。第一，當你提到BinOptics的產量在大約六個月內翻倍時，能否再幫我們理解一下——從產量提升到你們能開始就這些新增產能產生營收，中間大概需要多久？

It's instant. We can ship every product that we produce, at least through this fiscal year. So when we say doubling in six months, that is through yield improvements and debottlenecking the factory in Ithaca, New York, and some minor capital investment. So that will, starting in six months, be that step function. It's difficult within the first three months.

是立即的。我們能把我們生產的每一項產品都出貨，至少在本財年內是如此。所以當我們說六個月內翻倍，那是透過良率改善與解除紐約州伊薩卡（Ithaca）工廠的瓶頸，再加上一些小幅資本投資來達成。因此在六個月後就會出現那種階梯式的提升。前三個月內要做到會比較困難。

And then the second thing that is operating in parallel is, we're replicating the production line in Lowell, in our factory in Massachusetts. And that opens up a much broader capability for capacity. We say doubling that again -- reality is, we could probably increase it ten-fold and not run into any equipment issues.

同時並行的第二件事是，我們正在麻薩諸塞州的Lowell工廠複製這條生產線。那會開啟更廣泛的產能擴充能力。我們說再翻倍——但實際上，我們大概可以把產能提高到十倍而不會遇到任何設備方面的問題。

Okay, that's helpful. And then for a second follow-up around BinOptics, you mentioned about 30% of sales now are coming from optical. Is that including the contribution from lasers, or is that just the analog part?

好的，這很有幫助。那第二個關於BinOptics的追問，你提到目前約30%的銷售來自光學。這是否包含雷射（lasers）的貢獻，還是只有類比（analog）那一部分？

Yes, that would be including lasers, including the Mindspeed contribution, and the stuff that pre-existed Mindspeed, the 100-gigabyte long haul rural-to-metro growth, which is now a very substantial piece of that as well.

是的，那會包含雷射，包含Mindspeed的貢獻，也包含Mindspeed併入前就已存在的部分——100G長途（long haul）從鄉村到都會（rural-to-metro）的成長，而那現在也是其中非常可觀的一塊。

Okay, that's helpful. And then, I just wanted to ask around the OpEx profile of the Company and capital requirements. I know you guys touched on this a little bit, but as capacity doubles or quadruples at BinOptics, should we be thinking about some sort of step function increase in either OpEx? And are there any kinks we need to have in mind as we go forward?

好的，這很有幫助。接著我想問一下公司營業費用（OpEx）輪廓與資本需求。我知道你們稍早有提到一些，但當BinOptics的產能翻倍或變成四倍時，我們是否應該預期OpEx會出現某種階梯式上升？以及往後推進時，有沒有任何需要注意的卡點？

Or around the capital investment line, is there any large or discrete capital investments you might need to make? For example, if you wanted to ramp up capacity at the Lowell fab?

或者在資本投資（capital investment）這一項上，你們是否需要做任何大型或一次性的資本支出？例如，如果你們想在Lowell廠加速拉升產能的話？

Not that would be noticeable, because the additional depreciation cost for the new equipment, when it comes on line, goes through cost of sales. So that is part of the cost of the incremental revenue. That's all -- you'll see increasing costs, but you'll also see our margin in the range it is today. It's not going to be a dilution effect of the increased expense.

不會有明顯的影響，因為新設備上線後所增加的折舊成本會計入銷貨成本（cost of sales）。所以那是增量營收成本的一部分。就是這樣——你會看到成本增加，但你也會看到我們的毛利率維持在今天的區間。增加的費用不會造成稀釋效果。

The other side of the coin is that we have some compatible equipment that is in place in Lowell already. So we can further utilize the equipment that we have. That generally will do the opposite. In fact, while it's not material overall to our overall P&L, it will improve the utilization we have of our fixed cost inside the fab.

另一方面，我們在Lowell已經有一些相容的設備到位，所以我們可以進一步利用現有設備。那通常會產生相反的效果。事實上，雖然對整體損益表（P&L）而言並不重大，但它會提升我們在廠內固定成本的設備利用率。

That's helpful. And just a last question around the tax rate. I know it's coming down this fiscal year. Is that already baking into the full benefits from BinOptics? Or can we think about other ways for the tax rate to come down maybe even beyond FY15 into FY16?

這很有幫助。最後一個關於稅率的問題。我知道本財年稅率在下降。這是否已經反映了BinOptics帶來的全部效益？或者我們是否可以期待稅率還有其他下降方式，甚至在FY15之後到FY16仍可能繼續下降？

It's possible to go down, and that is dependent upon the shift of the revenue. So more of the pure revenue that can be sourced externally, actually outside the USA, can fall into our international tax scheme that is focused on generating revenues in low tax or no tax environments.

有可能再下降，而這取決於營收的轉移。因此，更多可以在外部來源認列的純營收——實際上是在美國以外——就能納入我們的國際稅務架構中；該架構著重於在低稅或免稅環境中創造營收。

I think there is room, but this drop this year from 23% to 18% is the result of our execution utilization of the Mindspeed NOLs to take what was formerly domestic subsidiary or domestic revenue and transfer it to our international tax organization. And that's stepping down the overall tax rate, because it's at a lower rate.

我認為還有空間，但今年從23%降到18%，是我們執行並運用Mindspeed的NOL（可結轉虧損）所帶來的結果：把原本屬於國內子公司或國內營收的部分，轉移到我們的國際稅務組織。由於適用稅率較低，這就拉低了整體稅率。

Understood. Thank you very much.

了解。非常感謝。

You're welcome.

不客氣。

Thank you. With no further questions in the queue, I would like to turn the call over to John Croteau for any closing remarks.

謝謝。由於佇列中沒有其他問題，我想把電話交回給John Croteau，請他做任何結語。

Very good. Thank you, Operator. Before closing out today's call, please note that Bob and I will be on the road for the next three days in a number of the major financial centers, in support of the primary offering that we announced today. Kindly direct any meeting and schedule inquiries to your Goldman Sachs sales representatives. Additionally, on February 10, Bob and I will be attending the Stifel conference in San Francisco.

很好。謝謝你，接線員。在結束今天的電話會議之前，請注意Bob和我接下來三天將前往多個主要金融中心出差，以支持我們今天宣布的主承銷發行（primary offering）。如需任何會議與行程安排的詢問，請洽你們的高盛銷售代表。此外，2月10日，Bob和我將出席在舊金山舉行的Stifel研討會。

Thank you all for joining today's call, and I look forward to reporting our second-quarter fiscal results and progress in the coming months. Operator, you may now disconnect the call.

感謝各位參加今天的電話會議，我也期待在未來幾個月向各位報告我們第二季的財務結果與進展。接線員，現在可以中斷通話。

Thank you. Ladies and gentlemen, this does conclude the program, and you may now disconnect. Have a good day, everyone.

謝謝。各位女士先生，本節目到此結束，您現在可以中斷連線。祝各位有美好的一天。