MACOM Technology Solutions Holdings, Inc. (MTSI) 2019 Q3 法說會逐字稿

Good afternoon, and welcome to MACOM's Third Fiscal Quarter 2019 Conference Call. This call is being recorded today, 2019. (Operator Instructions) I would now turn the call to Mr. Steve Ferranti, MACOM's Vice President of Investor Relations. Mr. Ferranti, please go ahead.

下午好，歡迎參加 MACOM 2019 會計年度第三季財報電話會議。本次電話會議於今日（2019 年）錄音。(接線員指示) 現在我將把電話交給 MACOM 投資人關係副總裁 Steve Ferranti 先生。Ferranti 先生，請開始。

Thank you, Latif. Good afternoon, everyone, and welcome to MACOM's Third Fiscal Quarter 2019 Earnings Conference Call.

謝謝你，Latif。各位下午好，歡迎參加 MACOM 2019 會計年度第三季財報電話會議。

Our discussion today will contain forward-looking statements, which are subject to certain risks and uncertainties as defined in the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. For a more detailed discussion of the risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC.

我們今天的討論將包含前瞻性陳述，該等陳述受 1995 年《私人證券訴訟改革法》所載之前瞻性陳述安全港條款所界定之若干風險與不確定性影響。實際結果可能與今日討論內容存在重大差異。如需更詳細了解可能導致該等差異之風險與不確定性，請參閱 MACOM 向美國證券交易委員會（SEC）提交的文件。

Management statements during this call will include discussions of certain non-GAAP financial information. A reconciliation of GAAP to adjusted non-GAAP results are provided in the company's press release and related Form 8-K, which was filed with the SEC today.

管理層在本次電話會議中的發言將包含對若干非 GAAP 財務資訊的討論。GAAP 與調整後非 GAAP 結果之調節表已載於公司新聞稿及相關的 Form 8-K（今日已向 SEC 提交）中。

And with that, I'll turn over the call to Steve Daly, President and CEO of MACOM.

接下來，我將把電話交給 MACOM 總裁兼執行長 Steve Daly。

Thank you, and good afternoon. Today's conference call will be structured as follows: First, I will provide a general company overview and discuss a few recent events. After that, Jack Kober, MACOM's new Chief Financial Officer, will review our Q3 financial results. When Jack is finished, I will provide revenue and earnings guidance for the fourth fiscal quarter of 2019.

謝謝，下午好。今天的電話會議將依以下方式進行：首先，我將提供公司整體概況並討論幾項近期事件。接著，MACOM 新任財務長 Jack Kober 將回顧我們第三季的財務結果。Jack 結束後，我將提供 2019 會計年度第四季的營收與獲利指引。

I can characterize the third quarter as a pivotal quarter for the company, with Jack and I starting in our positions in the middle and end of May. We are both familiar with the business. Jack is the company's Corporate Controller for 4 years; and me, in the role of an Independent Director since 2015. Because of this advantage, the leadership transition has been smooth and efficient.

我可以將第三季形容為公司的一個關鍵轉折季度，因為 Jack 與我分別在 5 月中旬與 5 月底開始擔任現職。我們兩位都熟悉這項業務。Jack 在過去 4 年擔任公司企業財務控制長；而我自 2015 年起以獨立董事身分參與。基於這項優勢，領導階層的交接過程順暢且有效率。

Jack and I share the same philosophy on how to create shareholder value, and we recognize that changes need to be made. At a high level, our first priority is to improve MACOM's P&L and decrease spending across engineering, operations, business development, sales and general administration. We also believe establishing a streamlined organization in which engineers are empowered to design products quickly and release them to the market efficiently to satisfy customer demand as needed. We see many opportunities to make changes, which we believe will have a positive impact on the business and our future financial results.

Jack 與我對於如何創造股東價值抱持相同理念，也認知到需要做出改變。在高層面上，我們的首要任務是改善 MACOM 的損益表（P&L），並降低工程、營運、業務開發、銷售以及一般與行政等各方面的支出。我們也相信，建立一個精簡的組織，讓工程師能被賦權快速設計產品並有效率地推向市場，以在需要時滿足客戶需求。我們看到許多可進行變革的機會，並相信這將對業務及未來財務結果帶來正面影響。

As many of you know, MACOM has a long heritage as a technology leader in the semiconductor industry, going back decades. The company's wafer fab is widely recognized for providing unique compound semiconductor diodes and MMIC products. In recent years, MACOM has used the cash generated from the business, along with debt, to expand the breadth of its technology portfolio. Notably, MACOM has completed 11 acquisitions since December 2013. As a result of these activities, we have a combination of mature and emerging or new technologies in our portfolio.

如各位所知，MACOM 作為半導體產業的技術領導者，擁有可追溯至數十年前的悠久傳承。公司的晶圓廠以提供獨特的化合物半導體二極體與 MMIC 產品而廣受肯定。近年來，MACOM 運用業務所產生的現金流，並搭配舉債，擴大其技術組合的廣度。值得注意的是，自 2013 年 12 月以來，MACOM 已完成 11 項併購。因此，我們的產品組合中同時包含成熟技術以及新興或新技術。

To review, we view our mature technologies as silicon and gallium arsenide diodes and gallium arsenide MMICs and a wide range of silicon germanium, high-performance analog and mixed-signal ICs. And emerging or new technologies for MACOM include silicon photonic devices, lasers, APDs and PINs for optical applications, CMOS, system on a chips for DSPs and GaN on Silicon power amplifiers for telecom applications.

回顧而言，我們將成熟技術視為矽與砷化鎵二極體、砷化鎵 MMIC，以及廣泛的矽鍺（SiGe）、高效能類比與混合訊號 IC。而 MACOM 的新興或新技術則包括：矽光子元件、用於光學應用的雷射、APD 與 PIN、CMOS、用於 DSP 的系統單晶片（SoC），以及用於電信應用的矽基氮化鎵（GaN on Silicon）功率放大器。

All of MACOM's technologies are intended to serve major markets, including telecom infrastructure, network and data center and industrial and defense. In particular, we see our markets, such as data centers and 5G infrastructure, as future growth areas for the company. And I would like to highlight our technology portfolio is underpinned with high-caliber engineering and support organizations and robust intellectual property.

MACOM 的所有技術皆旨在服務主要市場，包括電信基礎設施、網路與資料中心，以及工業與國防。特別是，我們將資料中心與 5G 基礎設施等市場視為公司未來的成長領域。我也想強調，我們的技術組合以高水準的工程與支援組織，以及強健的智慧財產為基礎。

One of our tasks is to focus on completing technology developments and the associated product developments to achieve our goals in a manner that is fiscally disciplined.

我們的任務之一，是在財務紀律的前提下，專注完成技術開發及其相關的產品開發，以達成我們的目標。

On June 18, we announced a restructuring initiative which included a 20% workforce reduction and the closing of 7 design centers. These actions were company-wide and affected most if not all departments. I want to highlight that while the restructuring plan is substantial in scope, we do not believe these actions will have a negative impact on our ability to achieve our growth objectives. And going forward, our goal will be to manage our business and spending at levels which allow us to maintain profitability through the peaks and troughs of market cycles.

6 月 18 日，我們宣布一項重整計畫，其中包括裁減 20% 的人力並關閉 7 個設計中心。這些行動為全公司範圍，影響了大多數（若非全部）部門。我想強調，雖然重整計畫的範圍相當大，但我們不認為這些行動會對我們達成成長目標的能力造成負面影響。展望未來，我們的目標是以能讓我們在市場循環的高峰與低谷中維持獲利的水準來管理業務與支出。

Coinciding with the restructuring initiative, a strategic decision was made to exit the design and development of optical modules and subsystems for data center applications. We will now exclusively focus on being a merchant supplier of optical ICs and silicon photonic devices.

配合重整計畫，我們做出一項策略性決策：退出用於資料中心應用之光學模組與子系統的設計與開發。我們將改為專注成為光學 IC 與矽光子元件的商用（merchant）供應商。

Our new strategy is to support all data center module manufacturers at the IC or component level. The rationale for this decision is threefold. One, ICs command higher gross and operating margins. Two, we do not want to compete with our customers. And three, the return on capital employed for the IC business model is more attractive. I would like to clarify that we will continue to expand our high-performance optical module manufacturing, primarily receivers, for specialized niche applications in defense, test and measurement and medical end markets.

我們的新策略是在 IC 或元件層級支援所有資料中心模組製造商。做出此決策的理由有三點。第一，IC 具備較高的毛利率與營業利益率。第二，我們不希望與客戶競爭。第三，IC 商業模式的投入資本報酬率更具吸引力。我想澄清的是，我們將持續擴大高效能光學模組製造（主要為接收器），以服務國防、測試與量測以及醫療等終端市場中的特定利基應用。

Next, I would like to update investors on the status of our GaN on Silicon technology and associated developments. As a reminder, MACOM completed the purchase of Nitronex in 2014. And since then, we have been maturing and perfecting GaN on Silicon technology. Today, we produce GaN on Silicon products for both mobile radio and telecom infrastructure applications. These products are manufactured at a third-party, U.S.-based, 4-inch GaAs wafer foundry exclusively for us using our proprietary technology. The revenue and associated production volumes for these products has been incrementally growing, and that trend is expected to continue.

接下來，我想向投資人更新我們矽基氮化鎵（GaN on Silicon）技術及相關開發的進展狀況。提醒各位，MACOM 於 2014 年完成對 Nitronex 的收購。自那時起，我們一直在使矽基氮化鎵技術成熟並加以完善。目前，我們為行動無線電與電信基礎設施應用生產矽基氮化鎵產品。這些產品由一家位於美國的第三方 4 吋 GaAs 晶圓代工廠，使用我們的專有技術，專為我們獨家製造。這些產品的營收與相關產量一直在逐步成長，且預期此趨勢將持續。

Separate from that effort, we have an active process development program and partnership with STMicroelectronics. This program was kicked off a few years ago with the goal of producing very low-cost GaN on Silicon wafers in a very high-volume silicon fab. The key point to highlight here is that this effort is not a simple process transfer from MACOM to ST, as was the case when we transferred our GaN on Silicon technology to another GaAs fab. Our effort with ST is an order of magnitude more complex because we are adapting our technology to fit inside a silicon fab.

除上述工作之外，我們也與 STMicroelectronics 進行一項積極的製程開發計畫與合作夥伴關係。該計畫於數年前啟動，目標是在高產量的矽晶圓廠中生產成本極低的矽基氮化鎵晶圓。此處要強調的重點是，這項工作並非像我們將矽基氮化鎵技術轉移至另一家 GaAs 晶圓廠時那樣，僅是簡單的製程移轉（從 MACOM 到 ST）。我們與 ST 的合作在複雜度上高出一個數量級，因為我們正在調整技術以適配於矽晶圓廠的製程環境中。

Process chemistry, metal stacks, gate structures, [contact] layers and processing equipment are all different. And as a result, each process step needs to be developed and then qualified. This effort is making forward progress. However, based on my review, I conclude there is still significant work ahead to complete the project. Given the process is still in development, today, it is difficult to accurately forecast the timing of our 5G, GaN-based product revenue ramp. I will provide an update on schedules when we move closer to the end of the development phase. We will continue to work on the development with ST as a priority. And when we launch our first products, they will be compelling. MACOM and ST make a formidable team, and both companies are eager to complete development and initiate production.

製程化學、金屬堆疊、閘極結構、[接觸]層以及製程設備皆不相同。因此，每一道製程步驟都需要先開發，然後再進行認證。這項工作正在向前推進。然而，根據我的審視，我的結論是：要完成該專案，前方仍有大量工作要做。鑑於製程仍在開發中，目前很難精準預測我們 5G、以 GaN 為基礎的產品營收放量時程。當我們更接近開發階段尾聲時，我將提供時程更新。我們將持續把與 ST 的共同開發列為優先事項。而當我們推出首批產品時，它們將極具吸引力。MACOM 與 ST 是一支強而有力的團隊，兩家公司都渴望完成開發並啟動量產。

I would note that we have other emerging technologies in development for 5G. These include small-signal RF products, 25G DML lasers and analog and mixed-signal products for fronthaul applications.

我也要指出，我們還有其他正在開發中的 5G 新興技術。其中包括小訊號 RF 產品、25G DML 雷射，以及用於前傳（fronthaul）應用的類比與混合訊號產品。

The company has a large and diverse customer base comprised of over 8,000 customers, serviced by dozens of product lines and thousands of part numbers. I'll highlight, in Q3, MACOM immediately suspended shipments to Huawei and certain of its subsidiaries and affiliates when the U.S. commerce department placed these entities on the entity list, which is part of the Export Administration Regulations. MACOM is committed to ensuring full compliance with all U.S. export control regulations, and our team responded appropriately.

公司擁有龐大且多元的客戶基礎，客戶數超過 8,000 家，並由數十條產品線與數千個料號提供服務。我要特別提到，在第三季，當美國商務部將華為及其部分子公司與關係企業列入實體清單（entity list，屬於《出口管理條例》的一部分）後，MACOM 立即暫停對其出貨。MACOM 致力於確保完全遵循所有美國出口管制法規，我們的團隊也做出了適當回應。

After a legal review of the Export Administration Regulations and the scope of the entity list restrictions, we determined that we could lawfully resume delivery of certain products that fall outside the jurisdiction of the Export Administration Regulations. In Q4, we began shipping certain of these select products. We will continue to prohibit the shipment of products that are subject to the regulations until these restrictions are changed or the commerce department grants us a license to do so.

在對《出口管理條例》及實體清單限制範圍進行法律審查後，我們判定可依法恢復交付某些不受《出口管理條例》管轄的產品。在第四季，我們開始出貨其中部分精選產品。對於受法規約束的產品，在限制改變或商務部核發許可之前，我們將持續禁止出貨。

I believe having a diverse product portfolio, low customer concentration and broad exposure to multiple end markets is the best strategy to ensure business and financial stability. I further believe MACOM is well positioned in this regard.

我認為，擁有多元的產品組合、較低的客戶集中度，以及對多個終端市場的廣泛曝險，是確保業務與財務穩定的最佳策略。我也進一步認為，MACOM 在這方面具備良好定位。

Our future growth and profitability will be driven by launching best-in-class products, and we will work to accelerate our new product introduction pace. As an example, I would like to highlight a new product released in the quarter, the [MAOM-2311], which is a single-channel, surface mount, directly modulated laser driver product. This product is geared towards 50G, 100G and 200G applications inside the data center, which use 28 gigabaud PAM4 modulation schemes. This product was developed to have very low power consumption and includes integrated laser biasing in passive devices to minimize the overall footprint on our customers' PCBs. MACOM's engineering did an outstanding job designing this best-in-class product.

我們未來的成長與獲利能力將由推出同級最佳產品所驅動，我們也將努力加快新產品導入的節奏。舉例來說，我想重點介紹本季推出的一款新產品 [MAOM-2311]，這是一款單通道、表面黏著、直接調變雷射驅動器產品。該產品鎖定資料中心內的 50G、100G 與 200G 應用，採用 28 gigabaud 的 PAM4 調變方案。此產品以極低功耗為設計目標，並在被動元件中整合雷射偏壓，以將客戶 PCB 上的整體占板面積降至最低。MACOM 的工程團隊在設計這款同級最佳產品方面表現非常出色。

Revenue in the fiscal third quarter was $108.3 million, down 11% sequentially and approximately 25% year-over-year. On a geographic basis, 48% of third quarter revenue was from domestic customers and 52% was from international customers. Q3 revenue by end market is as follows: industrial and defense was $46.8 million, down 7% sequentially; telecom was $43.9 million, down 7% sequentially; and data center was $17.6 million, down 26% sequentially.

會計年度第三季營收為 1.083 億美元，較前一季下降 11%，較去年同期約下降 25%。以地區別來看，第三季營收中 48% 來自國內客戶，52% 來自國際客戶。第三季按終端市場的營收如下：工業與國防為 4,680 萬美元，較前一季下降 7%；電信為 4,390 萬美元，較前一季下降 7%；資料中心為 1,760 萬美元，較前一季下降 26%。

For the quarter, our book-to-bill was 1.2:1. Our turns business or business booked and shipped within the quarter was 40% of our total revenue, which is slightly higher than typical.

本季的接單出貨比（book-to-bill）為 1.2:1。我們的短交期業務（turns business），亦即在當季接單並於當季出貨的業務，占總營收的 40%，略高於一般水準。

In summary, Q3 was a pivotal quarter for MACOM's leadership. Jack and I are excited to be leading MACOM, and we continue to evaluate all aspects of the business, including technology road maps, R&D investments, product line strategies, sales strategies, operational and supply chain activities and company positioning within the markets we serve.

總結而言，第三季對 MACOM 的領導團隊而言是關鍵的一季。Jack 和我很高興能帶領 MACOM，我們也持續評估業務的各個面向，包括技術路線圖、研發投資、產品線策略、銷售策略、營運與供應鏈活動，以及公司在所服務市場中的定位。

In the near term, we are focused on cost control, planning and organizational structure, which we expect will lead to incrementally improving our financial performance in the coming quarters and years ahead.

短期內，我們聚焦於成本控管、規劃與組織架構；我們預期這將在未來幾季以及往後數年逐步改善我們的財務表現。

Jack will now provide a more detailed review of our Q3 financials.

接下來 Jack 將更詳細地回顧我們第三季的財務狀況。

Thanks, Steve. Good afternoon, everyone. I'm excited to take on the role of MACOM CFO and look forward to continuing to partner with Steve, the management team and all of our employees to help improve the company's profitability. I believe in a straightforward, data-driven and balanced approach to growing our business and creating shareholder value. MACOM has a long-standing, solid business with many dedicated employees and numerous well-defined processes upon which we can build and improve.

謝謝你，Steve。各位下午好。我很高興接任 MACOM 財務長（CFO）一職，並期待持續與 Steve、管理團隊以及全體員工合作，協助提升公司的獲利能力。我相信以直接、數據驅動且兼顧平衡的方法來推動業務成長並創造股東價值。MACOM 擁有長期且穩健的事業基礎，擁有許多敬業的員工，以及眾多明確且成熟的流程，我們可以在此基礎上持續建構並改善。

And now on to our Q3 financials. Adjusted revenue in fiscal Q3 was $108.3 million, down 25% year-over-year from $144.9 million in Q3 of fiscal 2018. The year-over-year decline was driven by a combination of softness in the data center market, a reduction in sales to Huawei and its affiliates as well as our decision to lower shipments into the distribution channel.

接著談我們第三季的財務表現。會計年度第三季調整後營收為 1.083 億美元，較 2018 會計年度第三季的 1.449 億美元年減 25%。年減主要由多項因素共同造成，包括資料中心市場疲弱、對華為及其關係企業的銷售下降，以及我們決定降低對通路的出貨量。

Adjusted gross profit and adjusted gross margin in fiscal Q3 were $42.6 million and 39.4% of revenue, respectively. These amounts included $15 million of additional inventory reserves or roughly 1,400 basis points of gross margin impact. Also, at current revenue levels, lower absorption of overhead has a more pronounced impact on gross margins. As revenue improves over time and depending on product mix, we expect to see an associated gross margin benefit.

會計年度第三季調整後毛利與調整後毛利率分別為 4,260 萬美元與營收的 39.4%。上述數字包含額外提列的 1,500 萬美元存貨準備，約造成毛利率影響 1,400 個基點。此外，在目前的營收水準下，製造費用吸收不足對毛利率的影響更為明顯。隨著營收隨時間改善，並視產品組合而定，我們預期毛利率也將獲得相應的改善效益。

Total adjusted operating expenses were $64.9 million, which consisted of R&D expenses of $40.1 million and SG&A expenses of $24.8 million. Total adjusted operating expenses were sequentially up, approximately $1.5 million or 2.5% due primarily to additional R&D-related mass costs incurred during the quarter partially offset by reduced spending in other areas.

調整後營業費用總額為 6,490 萬美元，其中研發費用 4,010 萬美元，銷售、一般及行政（SG&A）費用 2,480 萬美元。調整後營業費用較前一季增加約 150 萬美元或 2.5%，主要因本季發生額外的研發相關量產成本（mass costs），但部分被其他領域支出下降所抵銷。

Adjusted loss from operations in the third quarter was $22.3 million, translating into negative 20.6% operating margin.

第三季調整後營業損失為 2,230 萬美元，對應的營業利益率為負 20.6%。

As noted earlier, on June 18, we announced a restructuring initiative, which once fully implemented is expected to result in approximately $50 million in annualized cost savings. We do not have a significant benefit in the third quarter from these restructuring actions but do expect a significant operating expense benefit beginning in our fourth fiscal quarter as reflected in our guidance. The majority of the total savings are expected to be fully realized by the end of fiscal Q2 2020. We incurred $9 million of charges in the third fiscal quarter associated with this initiative, including cash cost of roughly $2 million, primarily associated with employee severance obligations. We expect to incur additional restructuring charges of approximately $1.6 million during the fourth fiscal quarter and approximately $2.3 million during fiscal 2020. The total cash costs associated with this initiative are expected to be approximately $9 million.

如先前所述，我們於 6 月 18 日宣布一項重整計畫；在全面落實後，預期可帶來約 5,000 萬美元的年化成本節省。第三季尚未從這些重整措施中獲得顯著效益，但我們預期自會計年度第四季起將出現顯著的營業費用改善，並已反映在我們的財測指引中。預期大部分的總節省將於 2020 會計年度第二季末前完全實現。第三季我們因該計畫認列 900 萬美元費用，其中現金成本約 200 萬美元，主要與員工資遣義務相關。我們預期在會計年度第四季將再發生約 160 萬美元的重整費用，並在 2020 會計年度再發生約 230 萬美元。與此計畫相關的現金成本總額預期約為 900 萬美元。

I will also note that in connection with the restructuring initiative, during Q3, we determined that certain intangibles and fixed assets were impaired and others were required to be revalued, resulting in noncash impairment charges of $264 million.

我也要指出，與重組計畫相關的是，在第三財季期間，我們判定某些無形資產與固定資產發生減損，另有部分資產需要重新估值，因而產生2.64億美元的非現金減損費用。

Adjusted EBITDA for fiscal Q3 was negative $15 million. Adjusted net interest expense was approximately $8 million. Our normalized adjusted income tax rate in fiscal Q3 continued at 8%. Fiscal Q3 adjusted net loss was $27.7 million, translating into a loss of $0.42 per fully diluted share, utilizing 66 million fully diluted shares to calculate this fiscal Q3 adjusted net loss per share.

第三財季調整後EBITDA為負1,500萬美元。調整後淨利息費用約為800萬美元。我們第三財季的常態化調整後所得稅率維持在8%。第三財季調整後淨虧損為2,770萬美元，換算為每股完全稀釋虧損0.42美元；計算本第三財季調整後每股淨虧損時，採用6,600萬股完全稀釋股數。

And now moving on to cash flow and balance sheet items. GAAP cash flow from operations was $1.4 million in fiscal Q3, aided by reductions in net working capital of $31.9 million. We did generate positive operating cash flow in spite of the significant third quarter losses.

接下來談現金流量與資產負債表項目。第三財季依GAAP計算之營運活動現金流為140萬美元，主要受惠於淨營運資金減少3,190萬美元。儘管第三季虧損顯著，我們仍產生了正向的營運現金流。

Fiscal Q3 capital expenditures totaled $9.3 million or 7.6% of revenue and depreciation expense was $7.3 million. We note that a significant portion of our capital expenditures for fiscal Q3 as well as expected fiscal Q4 2019 are associated with commitments we entered prior to May of this year. We are currently reviewing all of our investments closely and intend to actively manage capital expenditures going forward.

第三財季資本支出合計930萬美元，約占營收的7.6%，折舊費用為730萬美元。我們指出，第三財季相當大一部分資本支出，以及預期2019年第四財季的資本支出，均與我們在今年5月之前所作出的承諾相關。我們目前正密切檢視所有投資，並打算在未來積極管理資本支出。

Q3 free cash flow was negative $7.9 million, down sequentially from a positive $12.8 million in Q2. Cash, cash equivalents and short-term investments were $185.8 million, down $7.1 million from $192.9 million at the beginning of our fiscal year.

第三季自由現金流為負790萬美元，較第二季正1,280萬美元按季下滑。現金、約當現金與短期投資為1.858億美元，較本財年初的1.929億美元減少710萬美元。

As a reminder, our short-term investments are comprised of corporate bonds and commercial paper and are classified as held-for-sale.

提醒一下，我們的短期投資由公司債與商業本票構成，並分類為可供出售。

Inventories were $111 million at quarter end. Inventory turns were 2.4x, up from 2.1x sequentially. Excluding the $15 million of additional inventory reserves recorded during fiscal Q3, our inventory turns would have been 1.9x. We do recognize the need to focus on and improve our inventory management. As Steve noted, we have a broad product portfolio, a large and diverse customer base and we utilize the combination of internal and external foundries that contribute to long lead times. In addition, our internal fab can be characterized as a high-mix operation. Notwithstanding these items, we do see opportunities for improvements on our inventory metrics going forward.

期末存貨為1.11億美元。存貨週轉率為2.4倍，較前一季的2.1倍上升。若排除第三財季額外提列的1,500萬美元存貨備抵，我們的存貨週轉率將為1.9倍。我們確實認知到需要聚焦並改善存貨管理。如Steve所提，我們擁有廣泛的產品組合、龐大且多元的客戶基礎，並採用內部與外部晶圓代工廠的組合，這些因素導致交期較長。此外，我們的內部晶圓廠可被描述為高混合度（high-mix）運作。儘管有上述因素，我們仍看到未來在存貨指標方面的改善機會。

Long-term debt was $684.9 million, inclusive of capital leases. Long-term debt of $656 million, which is covenant-light is termed with minimal annual principal repayment until its maturity in May 2024. MACOM also has an undrawn $160 million credit line available through November 2021.

長期負債為6.849億美元，包含資本租賃。其中6.56億美元的長期負債屬於限制條款較少（covenant-light），在2024年5月到期前，每年本金償還額度極少。MACOM另有一筆1.6億美元的未動用信用額度，可用至2021年11月。

So in summary, we are confident in our liquidity position and remain focused on improving profitability and cash flow. We believe that our recent restructuring initiative, along with tight management of operating expenses, capital expenditures and working capital, will help set the stage for improving our financial results.

總結而言，我們對流動性狀況有信心，並持續專注於提升獲利能力與現金流。我們相信，近期的重組計畫，加上對營運費用、資本支出與營運資金的嚴格管理，將有助於為改善財務表現奠定基礎。

I'll now turn the call back over to Steve.

我現在把電話交回給Steve。

Thanks, Jack. MACOM expects revenue in the fourth fiscal quarter ending September 27, 2019, to be in the range of $108 million to $112 million. Adjusted gross margin is expected to be 52% to 54%. And adjusted earnings per share is expected to be minus $0.04 to $0.00 per share based on 66.5 million fully diluted shares.

謝謝，Jack。MACOM預期截至2019年9月27日的第四財季營收將介於1.08億至1.12億美元。調整後毛利率預期為52%至54%。以6,650萬股完全稀釋股數為基礎，調整後每股盈餘預期為每股負0.04美元至0.00美元。

Our Q4 projections include expectations that our data center and industrial and defense revenues will be up slightly and our telecom revenues will be flat to down slightly.

我們對第四季的預測包含以下預期：資料中心以及工業與國防營收將小幅上升，而電信營收將持平至小幅下滑。

In summary, we have multiple growth opportunities in front of us, and we are very focused on execution and planning. As part of this process, we are establishing a detailed bottoms-up strategic plan, which will drive revenue and profitability.

總結而言，我們面前有多項成長機會，並且非常專注於執行與規劃。作為此流程的一部分，我們正在建立一份由下而上（bottoms-up）的詳細策略計畫，以推動營收與獲利能力。

I would now ask the operator to take any questions.

我現在請接線員開始接受提問。

(Operator Instructions) Our first question comes from the line of Harsh Kumar of Piper Jaffray.

(接線員指示) 我們的第一個問題來自Piper Jaffray的Harsh Kumar。

Welcome, Steve and Jack, to your first call. Guys, I had 2 quick ones. First of all, if I just do some simple math, $110 million revenues [by kicking] the gross margins that you guys guided to and associated math, I get like $52 million roughly in OpEx projected for September quarter. If I compare that to where you were in June, that's already about a $12-something million reduction. So that is basically pretty much all of the restructuring that you guys announced. But in your scripted call, you mentioned that there's more coming. So I'm trying to reconcile how much is left. And how do I work around this math? And then I have a quick follow-up.

歡迎Steve和Jack參加你們的第一場電話會議。各位，我有兩個簡短問題。首先，如果我做個簡單的計算，以1.10億美元營收、你們指引的毛利率以及相關推算，我大約得到9月季度預估營運費用約5,200萬美元。若與你們6月的水準相比，這已經大約減少了1,200多萬美元。所以這基本上幾乎就是你們宣布的全部重組效益。但在你們的講稿中，你們提到後續還會有更多。因此我想釐清還剩下多少。以及我該如何理解這個計算差異？然後我還有一個追問。

Right. Well, thank you for the question. So generally speaking, your math -- your gross math levels are correct, but there will be some incremental improvements in the next few quarters. And Jack, if you want to add to that?

好的。謝謝你的問題。一般來說，你的計算——你的粗略計算水準是正確的，但接下來幾個季度還會有一些額外改善。Jack，你要補充嗎？

Yes. Sure. Harsh, we're probably about 80% of the way there here in the fourth quarter in terms of reaching that annualized savings target with some of those savings being spread out for the next couple of quarters as they work their way in. There were a couple of items that we had here in the third quarter. We touched upon some of the mass costs that drove our Q3 up a little bit, and then there were some also -- some other expenses that we had here with the transitions that drove that operating expense number up a little higher.

是的。當然。Harsh，就第四季而言，若以達成年度化節省目標來看，我們大概已完成約80%；其中部分節省會在接下來幾個季度逐步反映出來。第三季我們有幾個項目。我們提到過一些一次性成本使得第三季費用略高，另外也有——還有一些與轉換相關的其他費用，使得營運費用數字略為偏高。

Understood, guys. And one for you, Steve. Long term, as you think about -- so let's call it 12 months to 18 months, what are some of the drivers -- out of the 3 end markets that you have, which are the ones that you're expecting incremental growth out of -- where you would outperform the market?

了解，各位。Steve，我有一題給你。從長期來看——假設是12到18個月，你在思考驅動因素時——在你們的三個終端市場中，哪些是你們預期能帶來增量成長、並且會優於市場表現的？

Well, I think, generally speaking, the growth story for MACOM is really about products and our ability to launch the products into the market at a faster pace. So I would say that generally speaking, those products are aiming at 5G, and that includes a variety of product lines, including lasers, APDs, PINs, where you look to -- we're looking to expand our GaAs and SiGe portfolio into the 5G market as well.

我想，概括而言，MACOM的成長故事主要在於產品，以及我們以更快速度將產品推向市場的能力。因此我會說，整體來看，這些產品是瞄準5G的，涵蓋多條產品線，包括雷射、APD、PIN等；同時我們也希望——我們也正尋求將我們的GaAs與SiGe產品組合擴展到5G市場。

But I think MACOM is very well positioned in the 3 main markets that we serve, certainly industrial and defense, the data center and the telecom. So the growth drivers for us is not necessarily the movement of these markets at the moment. It's more about us launching products into the market.

但我認為，MACOM在我們所服務的三大主要市場——工業與國防、資料中心以及電信——都具備非常好的定位。因此，我們的成長驅動因素目前不一定是這些市場本身的變動。更多是在於我們把產品推向市場。

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

我們的下一個問題來自 Stifel 的 Tore Svanberg 專線。

This is Jeremy calling for Tore. I just had a question about the GaN on Silicon. I understand that you're not commenting in terms of the timing. But can you give us a sense of the magnitude of the expected investment and kind of the -- maybe the TAM that you're hoping to address? And are you still ramping at both the Singapore and European locations?

我是 Jeremy，代 Tore 提問。我想問一下關於矽基 GaN（GaN on Silicon）。我了解你們不會評論時程。但你們能否讓我們了解一下預期投資規模，以及你們希望切入的——也許是你們希望涵蓋的 TAM（總可服務市場）？另外，你們是否仍在新加坡與歐洲兩個據點同步爬坡量產？

Right. So certainly, the GaN opportunity for the company is quite large. And that thesis of growth driver remains. As you know, we've been working on GaN for a number of years. Today, we have products selling into the market, as I mentioned in my prepared remarks, including mobile radio and also we're beginning to see the market with some of our products in the telecom space, specifically 4G and 5G.

好的。所以可以肯定的是，對公司而言，GaN 的機會相當龐大。而這個作為成長驅動因素的論點仍然成立。如各位所知，我們在 GaN 上已經投入多年。目前我們已有產品在市場上銷售，正如我在事先準備的發言中提到的，包括行動無線電；同時我們也開始看到我們部分產品在電信領域的市場動能，特別是 4G 與 5G。

So the underlying thesis of growth around GaN is intact. We do have, as everybody knows, a relationship with STMicroelectronics. And the thinking with this relationship is to be able to bring the company into very high-volume production with a very low-cost -- cost of goods sold. So that is a project that's well underway. We don't want to give specific guidance on when that development will be completed because it's still a moving target.

因此，圍繞 GaN 的成長基本論點依然完好。我們也確實如大家所知，與 STMicroelectronics 有合作關係。而這段合作關係的構想，是讓公司能以非常高的產量、並以非常低的成本——銷貨成本（COGS）——進行量產。所以這是一個正在積極推進的專案。我們不想就該開發何時完成給出具體指引，因為它仍是一個持續變動的目標。

We are encouraged that we have working prototypes in the lab. But because we see there's still a lot of work to do, one of the first things Jack and I did in the past month is we literally, certainly met with the management team. But we essentially put the program on hold, so that we could do a full review of all of the technical issues associated with the program, the capital spending associated with the program, so that we could really understand what was going to be necessary to get into the market.

我們很受鼓舞，因為在實驗室裡已經有可運作的原型。但由於我們看到仍有大量工作要做，Jack 和我在過去一個月做的第一件事之一，就是我們確實與管理團隊會面。但我們基本上先把這個計畫暫停，好讓我們能對與該計畫相關的所有技術議題、以及與該計畫相關的資本支出做一次全面檢視，從而真正了解要進入市場需要哪些條件。

Ultimately, we concluded that this is still a very interesting opportunity for the company. As you know, with the 5G infrastructure architectures, many of these base stations have very large antenna systems. So for example, you'll have a 3-sector antenna system with 64 elements per sector. So you're looking at 192 amplifiers per base station. And so our goal is to use the GaN on Silicon to address that market.

最終，我們的結論是，這對公司而言仍是一個非常有趣的機會。如各位所知，在 5G 基礎建設架構中，許多基地台都有非常大型的天線系統。例如，你可能會有一個三扇區（3-sector）的天線系統，每個扇區有 64 個單元。因此每個基地台就需要 192 個功率放大器。而我們的目標是使用矽基 GaN 來切入這個市場。

So the opportunity is quite large. You can measure the volume of amplifiers in the tens of millions of units. And that opportunity is really coming right at MACOM. So it's really about us finishing the development. The customers are certainly interested in the technology. We're excited about the technology. And we think that GaN on Silicon fits very nicely between LDMOS and GaN on Silicon carbide. And so we will make sure that we optimize our development program to win the sockets that we can be very competitive on with regards to performance.

所以這個機會相當大。你可以用數千萬顆等級的放大器出貨量來衡量。而這個機會正直接朝 MACOM 而來。因此關鍵在於我們完成開發。客戶當然對這項技術有興趣。我們也對這項技術感到興奮。我們認為矽基 GaN 在 LDMOS 與碳化矽基 GaN（GaN on Silicon carbide）之間的定位非常合適。因此，我們會確保最佳化我們的開發計畫，以贏得我們能在效能方面具備高度競爭力的設計導入（sockets）。

We believe we have a cost advantage in the very high-volume applications, so now it's about addressing the areas where we can be on par with GaN on Silicon carbide, whether it be the bandwidth, certainly the efficiency and also how the product is actually used in the application. So the timing of that has yet to play out. I can say that we are certainly excited about the opportunity, and it is very large.

我們相信在超高量應用上我們具備成本優勢，因此現在重點在於補齊那些我們需要與碳化矽基 GaN 看齊的面向，無論是頻寬、當然還有效率，以及產品在應用中實際的使用方式。因此其時程仍有待後續發展。我可以說，我們對這個機會確實非常興奮，而且規模非常大。

Just turning to the industrial and defense for the next quarter. If I can -- can you parse out maybe the 2 different moving parts there? Are they both expected to grow [slightly] sequentially? Or is one maybe outperforming the other a little bit?

接著談到下一季的工業與國防業務。如果可以的話——你能否把其中兩個不同的變動因素拆開說明？它們是否都預期會較前一季小幅成長？還是其中一個可能表現稍微優於另一個？

Yes. I would say that, on balance, they're about the same with a slight advantage to test and measurement or the industrial piece. We do see that -- that business has been relatively steady with the build-out of 5G testers to support the infrastructure rollout. And then what will follow that is, of course, testers for the handsets, which will be another big advantage. And so we have a lot of different products across our MMIC product line, the diode product line. We have very nice control products. So we do see some, I would say, stable to slightly up opportunities in the coming months ahead.

可以。我會說整體而言兩者差不多，但測試與量測或工業那一塊略占優勢。我們確實看到——該業務隨著 5G 測試設備的建置以支援基礎建設的部署，表現相對穩定。接下來當然會是手機端的測試設備，這將是另一個很大的利多。因此我們在 MMIC 產品線、二極體產品線都有許多不同產品。我們也有非常不錯的控制類產品。所以我們確實看到在接下來幾個月，機會大致穩定到略為上升。

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

我們的下一個問題來自 Needham 的 Quinn Bolton 專線。

This is Michelle on for Quinn. So I guess just on Huawei. Do you guys -- did you guys see any pull-ins in orders in like the first half of the June quarter? And you mentioned you guys are -- might be applying for some of the licenses with the Department of Commerce. Have you actually submitted for those? Or are you guys still evaluating that?

我是 Michelle，代 Quinn 提問。我想先問關於華為。你們——你們是否在 6 月季度的前半段看到任何提前拉貨（pull-ins）的訂單？另外你們提到可能會向商務部申請一些許可證。你們實際上已經提交申請了嗎？還是仍在評估中？

Right. So we have a very broad product line that addresses many different divisions of Huawei. And so when the company was put on the entity list, obviously, we halted all shipments and we began to next really do an evaluation of the situation. I would say that -- well, so the short answer is, yes, we are in the process of applying for licenses. We actually haven't done that yet.

好的。所以我們有非常廣泛的產品線，涵蓋華為的許多不同事業部門。因此當公司被列入實體清單時，很明顯地，我們停止了所有出貨，接著開始對情況進行評估。我會說——嗯，所以簡短回答是：是的，我們正在申請許可證的流程中。但我們其實還沒有提交。

But separate to that, as we have gone through and reviewed some of the products we have, we have determined that we are able to make shipments, and these products are typically foreign-made, shipping from outside the U.S. And they've gone through a very careful vetting process not only internally with our trade compliance, but also with the support of outside counsel to make sure that we're following the Export Administration Regulations and that these parts are not controlled for national security reasons.

不過除此之外，當我們逐一檢視我們的一些產品後，我們判定有些產品是可以出貨的；這些產品通常是在美國境外製造、並從美國境外出貨。它們不僅在公司內部由我們的貿易合規團隊進行非常審慎的審查，也在外部法律顧問的協助下完成把關，以確保我們遵循《出口管理條例》（Export Administration Regulations, EAR），並確認這些零件並非因國家安全理由而受管制。

I don't want to specifically comment on the behaviors around pull-ins or pushouts on a customer-by-customer basis, so I'll sidestep that one. But I would just add that this is an evolving situation. The vast majority of products today are on hold and we're suspending shipments. And there's just a very small amount of products that fit into the category of being outside the EAR.

我不想就單一客戶層級的提前拉貨或延後出貨（pushouts）行為做具體評論，所以我會避開這題。但我想補充的是，這是一個持續演變的情況。目前絕大多數產品都處於暫停狀態，我們也在暫停出貨。只有非常少量的產品符合不受 EAR 規範的類別。

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

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

Steve and Jack, welcome to both of you in the new roles. I certainly wish you both all the success.

Steve 和 Jack，歡迎兩位出任新職務。我也誠摯祝福兩位一切順利、成功。

My first question is a follow-up related to the GaN on Silicon opportunity. I don't know if you can give us a sense about what percentage of those process qualification steps have been done. But maybe more importantly, I think one of the challenges with the company for GaN on Silicon in the last couple of years have been in the 4G era, the equipment had already been designed with LDMOS, and so customers didn't want to redesign. And so I wondered, while MACOM is working to complete the qualification with STMicro in those factories, are you going to be missing out on some of the design-ins for 5Gs? So that when the company does figure out some of these qualification issues, are you still going to be able to -- have [one] -- the stocks that you need [today] -- you'll be able to ship in volume when you're ready?

我的第一個問題是延伸追問矽基 GaN 的機會。我不確定你們是否能讓我們了解一下，製程認證（process qualification）步驟大約完成了多少百分比。但也許更重要的是，我認為公司在過去幾年推動矽基 GaN 的挑戰之一是，在 4G 時代，設備已經以 LDMOS 完成設計，因此客戶不想重新設計。所以我想問的是，當 MACOM 正與 STMicro 在那些工廠完成認證時，你們是否會錯失一些 5G 的設計導入？也就是說，當公司解決了部分認證問題後，你們是否仍能——擁有你們今天所需要的——在準備就緒時能夠進行大規模出貨？

Thanks. So a few comments. And I'm not sure I agree with the setup on your question but -- regarding 4G and how we participated there. So I don't necessarily want to address that, but I do want to address the size of the market and our ability to take the market. I look at it like this, we want to launch products that are compelling for the customers. And so the rollout of the 5G is starting now, and it's going to continue for the next 5 years, probably peaking in terms of power amplifier requirements maybe 2 or 3 years from now.

謝謝。我有幾點評論。我不確定我同意你問題的前提設定，但——關於 4G 以及我們當時如何參與。所以我不一定想回應那一點，但我確實想談談市場規模以及我們取得市占的能力。我這樣看：我們希望推出對客戶具有吸引力的產品。因此 5G 的部署現在開始，並且會在未來 5 年持續推進，功率放大器需求可能在 2 到 3 年後達到高峰。

And so I don't get the sense that MACOM is going to be late. I think when we enter the market, our product will be compelling from a performance point of view.

因此我不覺得 MACOM 會來得太晚。我認為當我們進入市場時，從效能角度來看，我們的產品會很有競爭力。

From an ability-to-scale-quickly point of view, remember also that these applications for 5G are also at higher frequencies, 3.5 gigahertz, in some cases, 4.8. So those higher frequencies begin to be challenging for the LDMOS community. And so the frequencies are higher, the volume is at actually the lower power levels, specifically the massive MIMO platforms. And so that is certainly front and center at what we're focused on at the moment.

從快速擴產的能力角度來看，也請記得 5G 的這些應用也在更高的頻率上運作，例如 3.5GHz，在某些情況下是 4.8GHz。因此這些更高頻率開始對 LDMOS 陣營帶來挑戰。而且頻率更高、實際的出貨量則是在較低功率等級，特別是 massive MIMO 平台。所以這當然是我們目前聚焦的重點。

So we may miss some of it, but we certainly recognize that it's a big opportunity. It's a multiyear opportunity. And when we're ready to enter the market with our partners, we believe we'll be successful.

所以我們可能會錯過其中一部分，但我們確實認知到這是一個很大的機會。這是一個跨多年的機會。當我們準備好與合作夥伴一起進入市場時，我們相信會成功。

Our next question comes from the line of Richard Shannon of Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Richard Shannon。

Look forward to working with you. So I guess you've made some restructuring changes here, and you've given us a sense maybe on a dollar level where we're going to see OpEx start here in this quarter and into the next couple. But maybe if you can give us a little bit longer-term view on where you think your operating model can go both from a gross margin and operating margin or OpEx point of view, that would be helpful.

期待與你們合作。我想你們做了一些重整調整，也讓我們大概了解本季以及接下來幾季 OpEx 會從哪個美元水準開始。但如果你們能提供更長期一點的觀點，談談你們認為營運模型在毛利率與營業利益率、或 OpEx 方面可以走到哪裡，會很有幫助。

Sure. So just as -- sort of as on a go-forward basis, we probably won't be putting out what I would consider the -- a target model. If I look at MACOM's financial situation at the moment, we're underperforming, and our goal is to incrementally improve that. We want to become an average performing semiconductor company financially, then we want to be an above-average performing company, which means controlling costs, driving gross margins up and increasing the earnings per share. So that's the priority for the business.

當然。所以就——算是往前看的角度，我們大概不會發布我所認為的——目標模型。如果我看 MACOM 目前的財務狀況，我們的表現低於應有水準，而我們的目標是逐步改善。我們希望在財務上成為一家表現平均的半導體公司，接著成為一家高於平均表現的公司，這意味著控制成本、提升毛利率並提高每股盈餘。這就是公司業務的優先事項。

And to do that, we need to balance our investment in R&D. We need to really manage carefully our growth aspirations so that we're investing in projects that we can start and finish and bring to market in a timely manner.

而要做到這點，我們需要在研發投資上取得平衡。我們必須非常謹慎地管理成長企圖心，確保投資在我們能夠啟動、完成並及時推向市場的專案上。

So I would say -- I would just generally signal to you that, going forward, you're going to see a tight control on the OpEx lines. We're going to continue to work on the projects that we believe in. And in projects that we feel we're not going to be successful or they're not going to create financial returns, we'll certainly pivot away from those and we'll start new projects.

所以我會說——我大致想向你們傳達的是，未來你們會看到我們對 OpEx 各項費用線採取嚴格控管。我們會持續推進我們所相信的專案。而對於我們覺得不會成功、或無法創造財務回報的專案，我們一定會轉向離開，並啟動新的專案。

Jack and I are very focused on return on capital employed. If you look at the capital the company has spent over the past 2 to 3 years, for me, it's been quite high, $53 million last year, $32 million the year before that. This year, we're on a pace to be somewhere between $45 million and $50 million. And so one of the first things Jack and I are doing is taking a very critical look at these investments. And as we go into our next fiscal year, fiscal year 2020, we're going to drive that number down. And I think we already have tremendous leverage in the business -- with the foundation with a lot of that spending behind us. But on a go-forward basis, we're going to be very careful on the capital investments. And so, Jack, maybe you want to comment further on the model?

Jack 和我非常重視投入資本報酬率（return on capital employed）。如果你看公司過去 2 到 3 年的資本支出，對我來說相當高，去年 5,300 萬美元，前一年 3,200 萬美元。今年我們的進度看起來會落在 4,500 萬到 5,000 萬美元之間。因此 Jack 和我正在做的第一件事之一，就是以非常嚴格的角度檢視這些投資。當我們進入下一個會計年度，也就是 2020 會計年度時，我們會把這個數字降下來。而且我認為公司已經具備很大的營運槓桿——因為很多支出已經完成，基礎也已建立。但往前看，我們會非常謹慎地進行資本投資。所以，Jack，也許你想再補充一下這個模型？

Yes. That's fine, Steve. Thank you. So with regard to ongoing operating expenses, we did lay out in our prepared remarks the $50 million of annualized cost savings, and the earlier estimate was we're going to be about 80% of the way there through our fourth quarter. And that, coupled with many of the things that Steve was referring to, will be driving some additional efficiencies and operating expense leverage as we work our way through 2020. But we're still working through some of the details, and we're still working through our budgeting process and going to be doing a bottoms-up. So there's more to come in terms of where we think we're going to shake out as we work our way through 2020.

是的。沒問題，Steve。謝謝。關於持續性的營運費用，我們在事先準備的講稿中已說明每年年化 5,000 萬美元的成本節省，而先前的估計是到第四季我們大約能完成 80%。再加上 Steve 剛才提到的許多事項，當我們在 2020 年逐步推進時，將帶來額外的效率提升與營運費用槓桿。不過我們仍在釐清一些細節，也仍在進行預算編製流程，會採取由下而上的方式。因此，隨著我們在 2020 年推進，我們認為最終會落在哪個水準，後續還會有更多資訊。

Okay. That's helpful perspective. My follow-on question is related to your data center business. They're down quite a bit in the June quarter, and your prepared remarks mentioned a little bit of growth here in September. Seeing a little bit of a tepid market here, particularly in the 100-gig generation, which I think MACOM has very good position in. What are you seeing here in terms of bookings for this market for -- in view to the couple of quarters? And then what do you think your position is going to be for 400-gig? And when does that start to inflect?

好的。這個觀點很有幫助。我的追問與你們的資料中心業務有關。你們在 6 月季度下滑不少，而你們的事先準備講稿提到 9 月這裡會有一些成長。目前市場看起來有點疲弱，特別是在 100G 世代，我認為 MACOM 在這方面的布局非常好。就未來幾季來看，你們在這個市場的接單情況如何？另外，你們認為在 400G 方面你們的定位會是什麼？那會在什麼時候開始出現拐點（inflect）？

So the bookings specifically for our data center end market have been improving in the last 1.5 months. Some of our lead customers are beginning to order some of their HPA products, high-performance analog products. These are typically very sophisticated CDR driver-type products. We also are seeing some of our optical customers that service this market -- optical module customer servicing this market also beginning to step up a little bit in terms of bookings activity.

就我們資料中心終端市場的接單而言，過去 1.5 個月一直在改善。我們的一些主要客戶開始下單他們的 HPA 產品，也就是高效能類比產品。這些通常是非常複雜的 CDR 驅動器類產品。我們也看到一些服務該市場的光學客戶——也就是服務此市場的光模組客戶——在接單活動方面也開始略為升溫。

So we are forecasting improvements going into the next quarter from a revenue point of view, and we do see a little bit of our backlog growing. And we did, as you heard in the remarks, report a 1.2:1 book-to-bill ratio for the full quarter.

因此從營收角度來看，我們預期下一季會有所改善，也確實看到我們的積壓訂單（backlog）有些成長。而且如你在講稿中聽到的，我們也回報本季整體的接單出貨比（book-to-bill）為 1.2：1。

Regarding 400G, so that's actually something that we do have some R&D working on. I would say our main focus for this application revolves around our silicon photonic products, specifically the L-PIC products where we have a CW laser being placed on our silicon photonic device. And so I would say that it's early days on that right now. It's something that's in development. Very interesting results, and so we're certainly going to continue the work in this area. We think that when we finish the development, it will be meaningful for the company. But, again, I would say that this is in the early phase in terms of development.

至於 400G，這確實是我們有一些研發正在投入的方向。我會說我們在這個應用上的主要重點，圍繞在我們的矽光子產品，特別是 L-PIC 產品，也就是把一顆 CW 雷射放置在我們的矽光子元件上。所以我會說目前還在早期階段。這是正在開發中的項目。結果非常有趣，因此我們肯定會持續在這個領域投入。我們認為當我們完成開發時，將對公司具有重要意義。但同樣地，我會說就開發而言，這仍處於早期階段。

We are fortunate to have a lead customer that we're working with, and we believe they're a leader in the industry. And so we have a good collaboration engineer to engineer to work out some of the technical issues.

我們很幸運能與一家我們正在合作的領先客戶一起推進，我們相信他們是業界領導者。因此，我們有很好的合作，工程師對工程師地一起解決一些技術問題。

(Operator Instructions) Our next question comes from the line of Tim Savageaux of Northland Capital.

(接線員指示) 我們的下一個問題來自 Northland Capital 的 Tim Savageaux。

I want to follow up on that book-to-bill, 1.2 book-to-bill. And wonder if you could provide any color on what the drivers there were maybe from an end-market segment standpoint in terms of the bookings strength?

我想追問一下那個訂單出貨比（book-to-bill），1.2 的訂單出貨比。想請問您能否就其背後的驅動因素提供一些說明，例如從終端市場區隔的角度，哪些帶動了訂單的強勁表現？

It really was the 2 of the 3 markets, industrial and defense and the data center is where the strength came from. As I mentioned a moment ago, on the industrial and defense end market, primarily test and measurement for 5G-type customers that are working on testers. And then on the data center, primarily 100G-type applications, and we are starting to see some improvements in the general traffic in this area.

主要是三個市場中的兩個帶來了強勁動能：工業與國防，以及資料中心。如我剛才提到，在工業與國防終端市場方面，主要是針對 5G 類型客戶的測試與量測，這些客戶正在開發測試設備。而在資料中心方面，主要是 100G 類型的應用，我們也開始看到這個領域的整體流量有所改善。

And I would just also add to that, the actual billings came in at $108 million, which was relatively low, so that improved the book-to-bill ratio.

我也補充一下，實際出貨（billings）為 1.08 億美元，相對偏低，因此提升了訂單出貨比。

Got it. And on -- to follow up on the telecom side. It came down -- I guess with the Huawei impact, maybe less than I might have expected, can you quantify the impact of the Huawei ban in the quarter and then maybe relate that to what you expect to get back heading forward as you resume some shipments?

了解。另外，追問電信端的部分。它下滑了——我想在華為影響之下，可能比我預期的還少一些；您能否量化本季華為禁令的影響，並說明隨著您恢復部分出貨，未來您預期能回補多少？

Right. So we don't want to necessarily give too much detail on the customer by customer. But I can say historically, going back a few years, Huawei was a greater than 10% customer. In recent times, they were inching up to hit that threshold. When we made our pre-announcements back in June, we talked about a drop in revenue this quarter based on 2 factors, one was ceasing shipments to Huawei as well as slowing the sales into the distribution channel. If you look at those numbers, I would say it's almost a 50-50 split between the distribution and Huawei in terms of dollars -- dollar reduction for the quarter. I think that should be helpful for you.

好的。我們不一定想在逐一客戶層面提供太多細節。但我可以說，回顧幾年前的歷史，華為曾是我們超過 10% 的客戶。近期他們的占比正逐步接近那個門檻。當我們在 6 月做預先公告時，我們談到本季營收下滑有兩個因素：一是停止對華為出貨，二是對經銷通路的銷售放緩。如果你看那些數字，我會說就本季美元金額的減少而言，通路與華為的影響大概各占一半——約 50/50 的分拆。我想這應該對你有幫助。

Our next question comes from the line of C.J. Muse from Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I just wanted to follow up on a previous question related to synergies and perhaps we're just benchmarking it off the wrong OpEx level in the prior quarter. But it looks like you've garnered already $52 million quarter-to-quarter in your OpEx guide, and you talked about only being 80% there. So it sounds like what you're telling us is that the pro forma OpEx exiting the March quarter should be roughly $49 million. Is that what you're trying to tell us?

我想追問先前一個與綜效相關的問題，也許我們是用上一季錯誤的營運費用（OpEx）水準在做比較基準。但看起來你們在 OpEx 指引上，季對季已經取得了 5,200 萬美元的成果，而你們又提到只完成了 80%。所以聽起來你們是在告訴我們，3 月季度結束時的備考（pro forma）OpEx 大約會是 4,900 萬美元。這是你們想表達的意思嗎？

I would say that, first of all, the $52 million number, plus or minus some amount, is a reasonable number to dial into the models for exiting Q4. And what we'd like you to understand is as we enter next quarter and our fiscal 2020, we'd like to control that number. We're not forecasting going below $50 million or to that level of detail. The message we want to send tonight is we are controlling our costs. As you know, in some instances, there's lumpiness within the OpEx if we have a large mass flowing through. For example, some of the products that we work on have mass costs that are between $1 million and $4 million. And so if one of those comes through in a particular quarter, it can certainly move the needle.

我會說，首先，5,200 萬美元這個數字，上下可能有些差異，是一個合理的數字，可以用來在模型中估算第 4 季結束時的水準。而我們希望你們理解的是，當我們進入下一季與我們的 2020 會計年度時，我們希望能控制這個數字。我們並沒有預測會低於 5,000 萬美元，或做到那麼細的層級。我們今晚想傳達的訊息是：我們正在控制成本。如你所知，在某些情況下，如果有一筆較大的費用流入，OpEx 會出現波動性。例如，我們所開發的一些產品，其一次性費用介於 100 萬到 400 萬美元之間。因此如果其中一筆在某一季發生，確實可能會造成明顯影響。

But generally speaking, we're trying to control costs. That's a big theme of what Jack and I are doing. But we really don't want to have you get ahead and think we're going to be below $50 million for OpEx. I think that would be -- we don't want you to come away with that understanding. I don't know, Jack, if you want to add to that [or if it's right on.]

但總體而言，我們正努力控制成本。這是我和 Jack 正在做的一個重要主題。但我們真的不希望你們超前解讀，認為我們的 OpEx 會低於 5,000 萬美元。我想那會是——我們不希望你們帶走那樣的理解。我不知道，Jack，你是否想補充一下 [或如果這樣說就對了。]

Very helpful. And I guess, Steve, as my follow-up, as you've gone out and talked with customers about your transformation of MACOM and real -- focused efforts, I guess, how have those discussions gone? Is there a willingness for greater partnership? Do you see perhaps more content wins at customers? Would love to hear just kind of initial thoughts on those conversations.

非常有幫助。我想，Steve，作為我的追問，當你們外出與客戶談論 MACOM 的轉型以及更——聚焦的努力時，我想知道這些對話進展如何？客戶是否更願意建立更深的合作夥伴關係？你是否看到在客戶端可能取得更多內容（content）導入的勝出？很想聽聽你對這些對話的初步想法。

Sure. So I guess, I'll answer it in the following way. So we have very compelling technology in certain areas of the business, and those customers are very excited to see these developments be finished and have the products launched. So that covers a whole wide area. If I look at our photodetectors, if I look at our lasers, if I look at L-PIC, these are major initiatives that customers are waiting for. And so our job, as I mentioned earlier in the script, is to really finish these projects and enable our customers to build the equipment they want.

當然。我想我會用以下方式回答。我們在業務的某些領域擁有非常具吸引力的技術，而這些客戶非常期待看到這些開發完成並推出產品。這涵蓋了非常廣泛的範圍。如果我看我們的光偵測器（photodetectors）、我們的雷射（lasers）、我們的 L-PIC，這些都是客戶正在等待的重大計畫。因此，我們的工作，如我先前在講稿中提到的，就是確實完成這些專案，讓客戶能打造他們想要的設備。

And just to give you an example of some of the complexities around these product developments, let me talk about lasers for a second.

為了舉例說明這些產品開發周邊的一些複雜性，讓我先談談雷射。

So there's been a lot of talk about 25G lasers and whatnot. But when we look at our laser product line, we're addressing 3 different markets: access, mobile fronthaul and backhaul in the data center. We do it at 6 different data rates, 2.5G, 10G, 25G, 100G, 200G and 400G. We have 2 different laser structures, FP and DFB; 2 modulation schemes, direct modulated and CW using Mach-Zehnder devices that are on our L-PIC. We have to meet 4 different temperature requirements, and we sell these devices in 3 form factors, chips, these TO-cans and then we design in the lasers for our L-PIC structures.

市場上談了很多 25G 雷射等等。但當我們看我們的雷射產品線時，我們在服務三個不同市場：接取網（access）、行動前傳（mobile fronthaul）以及資料中心的回傳（backhaul）。我們涵蓋 6 種不同資料速率：2.5G、10G、25G、100G、200G 與 400G。我們有兩種不同的雷射結構：FP 與 DFB；兩種調變方案：直接調變，以及使用 Mach-Zehnder 元件的連續波（CW）方案，這些元件在我們的 L-PIC 上。我們必須符合 4 種不同的溫度規格，並且以 3 種封裝形式銷售這些元件：晶片、這些 TO-can，然後我們也會把雷射設計整合到我們的 L-PIC 結構中。

So when you look at all of that and then do that over 4 different wavelengths, there's a lot there. And so we have very good relationships with our customers. They understand our road maps. MACOM needs to finish these developments. We have an advantage in cost. We have an advantage to mass-produce.

所以當你把這些都考量進來，並且再跨 4 種不同波長去做，內容就非常多。因此我們與客戶之間有非常良好的關係。他們了解我們的產品藍圖（road maps）。MACOM 需要完成這些開發。我們在成本上有優勢。我們在量產方面也有優勢。

And as an example, a few years ago, we were selling about $20 million a quarter in lasers at 2.5 just for the 2.5G PON end market, right? So there's tremendous possibility with finishing all of these different projects and bringing them to market. We're specialized -- we understand the EPI formulas for each one of these lasers. We understand the grading required to make the DFB devices. There's a very complicated back-end manufacturing process to make lasers.

舉例來說，幾年前，我們僅在 2.5G PON 終端市場，就曾經每季銷售約 2,000 萬美元的 2.5G 雷射，對吧？因此，完成所有這些不同專案並將其推向市場，具有巨大的可能性。我們具備專業能力——我們了解每一種雷射的 EPI 配方。我們了解製作 DFB 元件所需的分級（grading）。製作雷射的後段製造流程非常複雜。

So when I -- when you talk about getting customers excited, they want to see MACOM be successful with lasers, as an example. But I could really go across the businesses and the technology centers and say the same thing and tell the same story. And so frankly, MACOM is internally focused to execute these product development plans, so that we can bring these products to market. And that is really the main focus of our activities. Both Jack and I, we're critically looking at everything, including organizational structure, our resource loading and budget, so that we optimize the balance and then optimize the returns for our shareholders and our investors.

所以當我——當你談到讓客戶感到興奮時，他們希望看到 MACOM 在雷射方面取得成功，作為一個例子。但我其實可以放諸各個事業部與技術中心，都能說同樣的話、講同樣的故事。因此坦白說，MACOM 目前是以內部為重點，去執行這些產品開發計畫，讓我們能把這些產品推向市場。而這確實是我們各項活動的主要焦點。Jack 和我都在非常嚴格地檢視所有事情，包括組織架構、資源配置與預算，以便最佳化平衡，並為我們的股東與投資人最佳化報酬。

Our next question is a follow-up from Mark Delaney of Goldman Sachs.

我們的下一個問題是高盛（Goldman Sachs）的 Mark Delaney 的追問。

My follow-up question is for Steve. And Steve, I was hoping you can maybe compare and contrast what some of your impressions are of MACOM and compare that with Hittite. And I ask because I know a lot of investors that I speak with remember all the success that you had with Hittite and the revenue growth that they had. And so certainly not looking for any sort of financial targets or top line, but in terms of some of the steps you're taking at MACOM in getting the organization to where you'd like it to be. Maybe if you could reflect on what worked well at Hittite that allowed that type of growth and where you think you are in the process at MACOM in terms of making some of the changes that you'd like to implement?

我的追問是給 Steve 的。Steve，我希望你或許可以比較並對照一下你對 MACOM 的一些印象，並把它與 Hittite 做個比較。我之所以這麼問，是因為我認識的許多投資人都記得你在 Hittite 取得的成功，以及他們的營收成長。所以我當然不是在尋求任何財務目標或營收（top line）指引，但就你在 MACOM 採取的一些步驟而言，如何讓組織走到你希望的狀態。也許你可以回顧一下在 Hittite 哪些做法效果很好、促成那樣的成長；以及你認為在 MACOM 的進程中，目前在推動你想要落實的變革方面，處於什麼階段？

Sure. Well, let me talk about MACOM and let me talk about some of the things that we want to do here as a management team. So one of the things we want to do is we want to take a very critical review of our process to develop products and launch products. I think there's opportunities to streamline these processes and get more products to the market faster. As I mentioned earlier, the growth driver and the growth engine for MACOM will be product based. We're in the right markets. We have the right technology. We now need to complete the developments of the processes, the semiconductor processes as well as the product development for those processes.

當然。我先談談 MACOM，也談談我們管理團隊想在這裡做的一些事情。其中一件我們想做的事，是對我們開發產品與推出產品的流程進行非常嚴格的檢視。我認為有機會精簡這些流程，讓更多產品更快進入市場。如我先前提到，MACOM 的成長驅動因素與成長引擎將以產品為基礎。我們在正確的市場。我們擁有正確的技術。現在我們需要完成製程的開發——半導體製程——以及基於這些製程的產品開發。

The one thing I absolutely think is a tremendous advantage for MACOM in the market is we practice a fab model and a fabless model. Today, we work with actually 9 external foundries both in silicon and gallium arsenide and indium phosphide. We have 2 fabs internally. We have, as Jack mentioned in his comments, a very high-mix, high-performance fab that is very capable of ramping up very quickly to address the needs of the market. So -- and we also have a fab out in Michigan that is producing world-class photodetectors. And we think we have some of the best APDs and PINs in the market.

我絕對認為，MACOM 在市場上的一個巨大優勢是：我們同時採用自有晶圓廠（fab）模式與無晶圓廠（fabless）模式。目前我們實際上與 9 家外部晶圓代工廠合作，涵蓋矽、砷化鎵與磷化銦。我們內部有 2 座晶圓廠。正如 Jack 在評論中提到的，我們有一座高混合（high-mix）、高效能的晶圓廠，具備非常強的能力，可以非常快速地爬坡量產以滿足市場需求。另外，我們在密西根也有一座晶圓廠，正在生產世界級的光偵測器。我們認為我們擁有市場上最好的部分 APD 與 PIN 產品。

And so these are very compelling technologies. And I think that our goal, like I mentioned a moment ago, is to make sure that we finish these process developments and launch products. Overlay that strong design teams, great sales channels, looking at our multiple sales channels, including distribution and the relationships with our distributors, our rep sales force and our direct sales channels. We want to optimize that and look for opportunities possibly to get better coverage, fill gaps in the channel, collaborate with our distributors on margin control.

因此，這些都是非常有吸引力的技術。而我認為我們的目標——如我剛才提到——是確保完成這些製程開發並推出產品。再疊加上強大的設計團隊、優秀的銷售通路，並檢視我們的多元銷售通路，包括經銷，以及與經銷商的合作關係、我們的代理銷售團隊與直銷通路。我們希望將其最佳化，並尋找機會，可能取得更好的覆蓋、補足通路缺口，並與經銷商在毛利控管上協作。

So these are things that are very important to the company to make sure that we optimize the profitability. The theme tonight is profitability, and that's captured by paying very close detailed -- or attention to the details along the entire process, whether it's engineering, the sales channels or G&A and supporting the business at large. So the success of MACOM going forward will be focusing on all the little details. I think I'll leave it at that.

因此，這些事情對公司非常重要，以確保我們能將獲利能力最佳化。今晚的主題是獲利能力，而這可透過在整個流程中對細節給予非常密切、深入——或說對細節的關注——來達成，不論是工程、銷售通路，或是 G&A（一般與行政費用）以及對整體業務的支援。因此，MACOM 未來的成功將取決於對所有小細節的專注。我想我就說到這裡。

Thank you. At this time, I'd like to turn the call back over to President and CEO, Steve Daly, for any closing remarks. Sir?

謝謝。此時，我想把電話會議交回給總裁暨執行長 Steve Daly，請他做任何結語。先生？

Thank you. In closing, Jack and I would like to thank our employees for the warm welcome and support that they've provided us over the past 2 months. We have a strong management team, a world-class employee base. And together, I'm confident we can achieve our new objectives. Thank you.

謝謝。最後，Jack 和我想感謝我們的員工，在過去兩個月給予我們熱情的歡迎與支持。我們有一個強大的管理團隊，以及世界級的員工基礎。我相信我們一起能達成我們的新目標。謝謝。

Ladies and gentlemen, that does conclude today's conference. Thank you for your participation, and have a wonderful day. You may disconnect your lines at this time.

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