MACOM Technology Solutions Holdings, Inc. (MTSI) 2019 Q4 法說會逐字稿

Good afternoon, and welcome to MACOM's Fourth Fiscal Quarter 2019 Conference Call. This conference call is being recorded today, Tuesday, November 12, 2019. (Operator Instructions)

下午好，歡迎參加 MACOM 2019 會計年度第四財季電話會議。本次電話會議於今天（2019 年 11 月 12 日，星期二）錄音。（接線員指示）

I will now turn the call over to Mr. Steve Ferranti, MACOM's Vice President of Investor Relations. Mr. Ferranti, please go ahead.

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, Liz. Good afternoon, everyone, and welcome to MACOM's Fourth Fiscal Quarter 2019 Earnings Conference Call.

謝謝你，Liz。各位下午好，歡迎參加 MACOM 2019 會計年度第四財季財報電話會議。

I would like to remind everyone that 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 more detailed discussions of the risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC. Management's statements during this call will include discussions of certain adjusted 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.

我想提醒各位，我們今天的討論將包含前瞻性陳述；此類陳述受 1995 年《私人證券訴訟改革法案》中所載之前瞻性陳述安全港條款所界定之特定風險與不確定性影響。實際結果可能與今天討論的內容有重大差異。關於可能導致上述差異之風險與不確定性的更詳細討論，請參閱 MACOM 向美國證券交易委員會（SEC）提交的文件。管理層在本次電話會議中的陳述將包含對若干經調整之非 GAAP 財務資訊的討論。GAAP 與經調整非 GAAP 結果之調節表已載於公司新聞稿及相關 Form 8-K（已於今日向 SEC 提交）中。

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. I will begin today's call with a general company update. After that, Jack Kober, our Chief Financial Officer, will provide a more in-depth review of our Q4 and full year financial results. When Jack is finished, I will provide revenue and earnings guidance for our fiscal Q1 2020, and then we would be happy to take some questions from our listeners.

謝謝，各位下午好。我將以公司整體近況更新作為今天電話會議的開場。之後，我們的財務長 Jack Kober 將更深入地回顧第四財季及全年財務結果。Jack 結束後，我將提供 2020 會計年度第一財季的營收與獲利指引，接著我們很樂意回答聽眾的提問。

In the fourth fiscal quarter, our revenue was $112.2 million, and our adjusted net income was $0.01 per diluted share. The company achieved non-GAAP profitability, primarily a result of the major restructuring we announced in June.

在第四財季，我們的營收為 1.122 億美元，經調整後的淨利為每股稀釋後 0.01 美元。公司達成非 GAAP 獲利，主要是我們在 6 月宣布之重大重組所帶來的成果。

Change at MACOM continues at a rapid pace. In July and August, we evaluated the strengths and weaknesses of our company's organizational structure. We also reviewed our new product introduction processes and policies, our R&D projects and a variety of sales, business and operational behaviors and process flows. After the review was completed, we established a new organization, which was announced to our employees in the middle of September. We also established a priority list to address opportunities across the business.

MACOM 的變革仍以快速步調持續推進。在 7 月與 8 月，我們評估了公司組織架構的優勢與弱點。我們也檢視了新產品導入流程與政策、研發專案，以及各式各樣的銷售、商務與營運行為及流程運作。完成檢視後，我們建立了新的組織架構，並於 9 月中旬向員工宣布。我們也建立了一份優先順序清單，以處理全公司各項機會。

To review, our leadership includes 5 Senior Vice Presidents, organized by function, namely, sales, operations, finance, technology and legal and HR. And engineering is now organized by technology, and each technology group will manage its own product development, product launches and technology road maps. These 6 engineering organizations will support 1 or more of our end markets, namely Industrial & Defense, Data Center and Telecom. The new structure eliminates a layer of management and we believe that it will streamline decision making and improve accountability. 9 of my 11 direct reports are either new to their position or are in a significantly different or expanded role. Our management team is complete and has extensive leading industry experience.

回顧一下，我們的領導團隊包含 5 位依職能編制的資深副總裁，分別負責：銷售、營運、財務、技術，以及法務與人資。而工程團隊現改以技術別編制，各技術團隊將管理其自身的產品開發、產品上市與技術路線圖。這 6 個工程組織將支援我們 1 個或多個終端市場，亦即工業與國防、資料中心與電信。新的架構消除了一層管理，我們相信這將精簡決策並提升問責。我 11 位直接部屬中有 9 位，不是新任其職，就是在顯著不同或擴大的職務中。我們的管理團隊已到位，並具備豐富的產業領導經驗。

Our new structure moves away from a matrix organization and towards a technology and product line organization. Our new structure places all resources necessary to introduce a product, namely chip design, package design, test software, product engineering and qualification under 1 organization and 1 person. The same organization will also manage application engineering and all postsales technical support. This structure, along with our just-revised new product introduction, or NPI procedure, reduces handoffs between departments, eliminates bureaucracy, and it will improve our ability to set and hold priorities. Most importantly, it will support increased accountability at the product line level.

我們的新架構從矩陣式組織轉向以技術與產品線為核心的組織。新架構將導入產品所需的所有資源——包括晶片設計、封裝設計、測試軟體、產品工程與認證——集中於同一個組織並由同一位負責人統籌。同一組織也將管理應用工程以及所有售後技術支援。此架構搭配我們剛修訂的新產品導入（NPI）流程，可減少部門間交接、消除官僚作業，並提升我們設定與維持優先順序的能力。最重要的是，它將支援在產品線層級提升問責。

Our Q4 revenue by end market was as follows: Industrial & Defense was $50.1 million, up 7% sequentially; Data Center was $22.6 million, up 28% sequentially; and Telecom, $39.6 million, down to 10% sequentially. Our Data Center revenue showed improved performance following 3 quarters of decline. Our Industrial & Defense revenue was driven by various U.S. defense programs as well as increased sales to our test and measurement customers. And our Telecom revenue declined sequentially primarily due to weakness in GPON. Overall, our 3 core end markets are strong and full of opportunity for MACOM, and I believe our new focus on product development and execution will allow us to win market share more efficiently.

第四財季按終端市場劃分的營收如下：工業與國防為 5,010 萬美元，季增 7%；資料中心為 2,260 萬美元，季增 28%；電信為 3,960 萬美元，季減 10%。我們的資料中心營收在連續 3 季下滑後呈現改善。我們的工業與國防營收主要由多項美國國防計畫帶動，並受惠於對測試與量測客戶的銷售增加。而我們的電信營收季減，主要是因 GPON 需求疲弱。整體而言，我們三大核心終端市場強勁，且為 MACOM 帶來大量機會；我相信我們對產品開發與執行的新聚焦，將使我們能更有效率地贏得市占。

On a geographic basis, 48% of our fourth quarter revenue was from domestic customers and 52% was from international customers, similar to prior periods. Our book-to-bill ratio was 1.1:1, and our turns business, or business booked and shipped within the quarter, was 31% of our total revenue. Our operations team is doing a great job focusing on planning and executing linear shipments throughout the quarter, which we anticipate will improve cash flows, AR and customer satisfaction.

以地理區域來看，第四財季營收中 48% 來自國內客戶、52% 來自國際客戶，與先前期間相近。我們的接單出貨比（book-to-bill）為 1.1：1，而我們的 turns 業務（即在當季接單並於當季出貨的業務）占總營收的 31%。我們的營運團隊在規劃並執行全季均衡出貨方面表現出色；我們預期這將改善現金流、應收帳款（AR）與客戶滿意度。

We have established an internal working fiscal year 2020 annual operating plan. This plan includes a detailed bottoms-up revenue forecast based on known design wins on identified programs. It also contains a bottom-up operating expense and capital equipment budget. In addition, we completed a first-pass review of all R&D projects currently being funded to ensure the priorities and the budgets are aligned. The management team and I are confident we can improve our financial performance during our FY 2020.

我們已建立 2020 會計年度的內部年度營運計畫（working annual operating plan）。該計畫包含一份詳細的自下而上營收預測，係基於已知、在已識別專案上取得的設計導入（design wins）。同時也包含自下而上的營運費用與資本設備預算。此外，我們已完成對目前所有正在投入資金的研發專案之第一輪檢視，以確保優先順序與預算一致。管理團隊與我有信心在 2020 會計年度期間改善我們的財務表現。

To ensure we remain focused, we have established a top 10 priority list for the company, which underscores to the management and all employees our key strategic initiatives for long-term growth and profitability. Additionally, all members of the leadership team have individual top 10 priority lists to support corporate objectives.

為確保我們保持聚焦，我們已為公司建立一份前 10 大優先事項清單，向管理層與全體員工強調我們推動長期成長與獲利的關鍵策略倡議。此外，領導團隊所有成員也各自擁有個人的前 10 大優先事項清單，以支援公司目標。

As we enter our 2020 fiscal year, we are focused on completing products in our pipeline, which will help drive MACOM's near- and long-term growth. Our 3 primary markets are large and provide MACOM significant growth opportunities. For example, we support major OEMs in our Industrial & Defense end market with our leading AlGaAs diode products. These products are designed into a number of new radar and aircraft platforms that will be deployed over the next few years. And we have a wide range of technologies and products for our Telecom end market. For example, we believe our high-performance analogue drivers, TIAs and APDs for 5G fronthaul are among the best-in-class. And our 64 gigabaud coherent driver in TIA products for deployment in the next generation of Metro/Long-haul optical networks are winning market share.

在邁入 2020 會計年度之際，我們專注於完成產品管線中的產品，這將有助於推動 MACOM 的中短期與長期成長。我們的三大主要市場規模龐大，為 MACOM 提供顯著的成長機會。例如，在工業與國防終端市場，我們以領先的 AlGaAs 二極體產品支援主要 OEM。這些產品已被設計導入多個新的雷達與航空器平台，並將在未來幾年部署。此外，我們在電信終端市場擁有廣泛的技術與產品組合。例如，我們相信用於 5G 前傳（fronthaul）的高效能類比驅動器、TIA 與 APD 產品屬同級最佳。而我們用於下一代都會/長途光網路部署的 64 gigabaud 相干驅動器與 TIA 產品，正在贏得市占。

We continue to have success in the Data Center with a well-established line of high-performance analogue components, including drivers, TIAs and CDRs for 100G deployments, along with new designs being introduced for 200G applications.

我們在資料中心領域持續取得進展，憑藉一條成熟的高效能類比元件產品線，包括用於 100G 部署的驅動器、TIA 與 CDR，同時也導入用於 200G 應用的新設計。

The opportunities that I've just outlined are based on established MACOM products that we have in production today. These products set the foundation of MACOM and should provide MACOM with profit and revenue growth in the coming months and quarters.

我剛才概述的機會，係基於我們目前已量產的既有 MACOM 產品。這些產品奠定了 MACOM 的基礎，並應可在未來數月與數季為 MACOM 帶來獲利與營收成長。

Our portfolio also contains new technologies which are still emerging, including GaN on Silicon, high-speed lasers, coherent and PAM4 DSPs and silicon photonics. These technologies are compelling, and our engineers continue to make solid technical progress to move these technologies closer to productization. We recognize that these technologies have the potential to generate significant revenues and profits in the years ahead. Further details and updates will be made as we make progress and after the associated products are launched and generating revenue.

我們的產品組合也包含仍在萌芽中的新興技術，包括矽基氮化鎵（GaN on Silicon）、高速雷射、相干與 PAM4 DSP，以及矽光子。這些技術極具吸引力，我們的工程師持續取得紮實的技術進展，推動這些技術更接近產品化。我們認知到，這些技術在未來數年有潛力帶來可觀的營收與獲利。隨著我們取得進展，並在相關產品推出且開始創造營收後，我們將提供進一步的細節與更新。

I'll highlight a few notable events that occurred during the fourth quarter. First, MACOM attended this year's CIOE, or China International Optoelectronic Exposition in Shenzhen. We hosted a live demonstration of an Open Eye MSA compliant 200G PAM4 chipset for data center applications. This chipset includes our high-performance CDR with integrated laser driver on the transmit side. On the receive side, the chipset includes MACOM photodetectors, a quad TIA and a 4-channel receive CDR. We view this solution as a great example of MACOM's product breadth, technology and industry leadership.

我將重點說明第四季期間發生的幾項重要事件。首先，MACOM 參加了今年在深圳舉辦的 CIOE（中國國際光電博覽會）。我們現場展示了符合 Open Eye MSA 的 200G PAM4 晶片組，應用於資料中心。該晶片組在發射端包含我們高效能的 CDR，並整合雷射驅動器。在接收端，晶片組包含 MACOM 光偵測器、四通道 TIA，以及 4 通道接收 CDR。我們認為此解決方案是 MACOM 產品廣度、技術實力與產業領導地位的絕佳例證。

Second, during the quarter, we began production of a SIPRI-compliant combo chip for 5G fronthaul links ranging from 500 meters to 20 kilometers. This chip integrates a DML laser driver with a limiting amplifier, dual CDRs, power management and diagnostics. We also recently introduced a transimpedance amplifier, which supports data rates of up to 28 gigabits per second with very low power consumption. When used in combination, these products can provide our customers a complete solution for low-cost, low-power 25G SFP modules for 5G fronthaul applications.

第二，在本季期間，我們開始量產符合 SIPRI 規範的組合晶片，用於 5G 前傳鏈路，距離範圍從 500 公尺到 20 公里。此晶片整合了 DML 雷射驅動器與限幅放大器、雙 CDR、電源管理與診斷功能。我們近期也推出了一款跨阻放大器，可支援最高 28Gbps 的資料速率，且功耗非常低。搭配使用時，這些產品可為客戶提供完整解決方案，用於 5G 前傳應用的低成本、低功耗 25G SFP 模組。

And third, we have released a very competitive front-end module, or FEM, targeting massive MIMO 5G deployments. This product utilizes multiple technologies, including a silicon-on-insulator, or SOI, switch in a gallium arsenide, low-noise amplifier. The product offers high-power switching capability and a high-gain, low-loss, low-noise figure receive side functionality. And lastly, we expanded our MMIC portfolio to include a family of high-performance phase shifters. MACOM's engineering did an outstanding job designing all of these unique and best-in-class products.

第三，我們已推出一款極具競爭力的前端模組（FEM），鎖定大規模 MIMO 5G 部署。此產品採用多項技術，包括在砷化鎵低雜訊放大器中使用的絕緣層上矽（SOI）開關。該產品提供高功率切換能力，並在接收端具備高增益、低損耗、低雜訊指數的功能。最後，我們也擴充了 MMIC 產品組合，新增一系列高效能移相器。MACOM 的工程團隊在設計這些獨特且同級最佳的產品方面表現出色。

Supplementing our design engineering efforts, our operations team is working to improve our gross margins, including launching new projects targeting wafer fab yield enhancements, reduction of scrap, cycle time reduction and lowering the costs from our key suppliers. We expect that these behind-the-scenes efforts will generate new profits, directly create shareholder value and will appear in our financial results in the coming quarters.

在補強我們的設計工程投入之際，我們的營運團隊也正致力於提升毛利率，包括啟動新專案以提升晶圓廠良率、降低報廢、縮短週期時間，以及降低關鍵供應商成本。我們預期這些幕後努力將帶來新增獲利、直接創造股東價值，並在未來幾季反映於我們的財務結果中。

Our purchasing and logistics team have done a great job embracing aggressive cost saving goals. The management team continues to evaluate all aspects of our business, including technology road maps, R&D investments, product line strategies, sales and pricing strategies, operational and supply chain activities and company positioning within our 3 core markets.

我們的採購與物流團隊在落實積極的成本節省目標方面表現優異。管理團隊持續評估我們業務的各個面向，包括技術路線圖、研發投資、產品線策略、銷售與定價策略、營運與供應鏈活動，以及公司在三大核心市場中的定位。

Jack will now provide a more detailed review of our Q4 and full year financial results.

接下來 Jack 將更詳細回顧我們第四季及全年財務結果。

Thanks, Steve, and good afternoon, everyone. We are pleased that we have returned to non-GAAP profitability here in our fiscal fourth quarter after reporting 2 quarters of non-GAAP losses. I would like to thank all of the MACOM employees who have been working hard to help achieve this.

謝謝你，Steve，各位下午好。我們很高興在本會計年度第四季，在連續兩季非 GAAP 虧損之後，已回到非 GAAP 獲利。我要感謝所有努力協助達成此成果的 MACOM 員工。

Revenue in fiscal Q4 was $112.2 million, up 4% sequentially and down 26% from $151.2 million in Q4 of fiscal 2018. The year-over-year decline was primarily driven by a combination of softness in Data Center demand and a decline in PON sales.

本會計年度第四季營收為 1.122 億美元，較前一季成長 4%，較 2018 會計年度第四季的 1.512 億美元年減 26%。年對年下滑主要是由於資料中心需求疲弱，以及 PON 銷售下滑的綜合影響。

Adjusted gross profit and adjusted gross margin in fiscal Q4 were $59.5 million and 53% of revenue, respectively. Gross margin remains a key focal point for us, and we see opportunities for continued improvements beyond Q4 levels. As revenue improves over time and depending on our product mix, we expect to see an associated improvement in gross margin.

本會計年度第四季調整後毛利與調整後毛利率分別為 5,950 萬美元與營收的 53%。毛利率仍是我們關注的重點，我們也看到在第四季水準之上持續改善的機會。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相應提升。

Total adjusted operating expense was $51.1 million, which consisted of R&D expense of $32.4 million and SG&A expense of $18.7 million. Total operating expense was down approximately $13.9 million or 21% sequentially, primarily due to the impact of the restructuring actions we took in fiscal Q3 of 2019. We are on plan to realize the full $50 million of annualized savings from these actions by the end of fiscal Q2 2020.

調整後營業費用總額為 5,110 萬美元，其中研發費用 3,240 萬美元，銷售、一般及行政（SG&A）費用 1,870 萬美元。營業費用總額較前一季約減少 1,390 萬美元（或 21%），主要因我們在 2019 會計年度第三季採取的重整措施所致。我們按計畫將在 2020 會計年度第二季末前，實現這些措施所帶來的全年化 5,000 萬美元節省。

Adjusted operating income in the fourth quarter was $8.5 million, translating into 7.6% operating margin. We incurred $2.5 million of restructuring charges in the fourth fiscal quarter and expect to incur additional restructuring charges of approximately $3 million during fiscal 2020 as we complete these actions.

第四季調整後營業利益為 850 萬美元，對應 7.6% 的營業利益率。我們在第四會計季度認列 250 萬美元的重整費用，並預期在 2020 會計年度完成這些措施的過程中，將再發生約 300 萬美元的額外重整費用。

Depreciation expense for fiscal Q4 was $7.3 million, and adjusted EBITDA was $15.8 million. Adjusted net interest expense was approximately $7.6 million.

本會計年度第四季折舊費用為 730 萬美元，調整後 EBITDA 為 1,580 萬美元。調整後淨利息費用約為 760 萬美元。

Our non-GAAP adjusted income tax rate in fiscal Q4 continued at 8% and resulted in an expense of less than $100,000. Fiscal Q4 adjusted net income was $806,000, translating into $0.01 of earnings per fully diluted share, utilizing a share count of 66.7 million fully diluted shares.

本會計年度第四季非 GAAP 調整後所得稅率維持在 8%，稅費支出少於 10 萬美元。第四季調整後淨利為 80.6 萬美元，按 6,670 萬股完全稀釋股數計算，完全稀釋每股盈餘為 0.01 美元。

Now moving on to cash flow and balance sheet items. Cash flow from operations was negative $7.6 million in fiscal Q4, attributed mainly to a reduction in payables as well as severance-related restructuring cash payments. We have taken steps to improve cash generation going forward, including the previously announced restructuring action, focused capital spending, tight operating expense management as well as managing our working capital. As a result of these actions, we expect positive operating cash flow in Q1 of fiscal 2020.

接著說明現金流量與資產負債表項目。本會計年度第四季營運活動現金流為負 760 萬美元，主要歸因於應付帳款減少，以及與資遣相關的重整現金支付。我們已採取措施以改善未來的現金創造能力，包括先前宣布的重整行動、聚焦的資本支出、嚴格的營業費用管理，以及營運資金管理。因此，我們預期 2020 會計年度第一季的營運現金流將轉為正值。

Fiscal Q4 capital expenditures totaled $6.1 million or 5.4% of revenue. We continue to closely manage all of our spending during the quarter and rescheduled certain capital expenditures into the first half of fiscal 2020. Despite this, we expect overall capital expenditures in fiscal 2020 to be below fiscal 2019 levels. We remain closely focused on achieving appropriate returns on capital that we employ.

本會計年度第四季資本支出合計 610 萬美元，約占營收 5.4%。我們持續在本季嚴格管理各項支出，並將部分資本支出重新排程至 2020 會計年度上半年。儘管如此，我們預期 2020 會計年度整體資本支出將低於 2019 會計年度水準。我們仍高度專注於確保所投入資本能取得適當報酬。

Q4 free cash flow was negative $13.6 million as compared to negative $7.9 million in Q3 primarily as a result of the lower Q4 cash flow from operations, partially offset by lower capital expenditures in the fourth quarter. Inventories were $107.9 million at quarter end, down $2.7 million sequentially. Inventory turns were 2.0x during the fourth quarter. We continue to prioritize inventory management and do see opportunities for continued improvement in our inventory metrics going forward.

第四季自由現金流為負 1,360 萬美元，相較第三季為負 790 萬美元，主要因第四季營運活動現金流較低所致，部分由第四季較低的資本支出所抵銷。季末存貨為 1.079 億美元，較前一季減少 270 萬美元。第四季存貨週轉率為 2.0 倍。我們持續將存貨管理列為優先事項，並確實看到未來存貨指標持續改善的機會。

As of September 2019 fiscal year-end, cash, cash equivalents and short-term investments were $176.7 million, down $9.1 million from $185.8 million at the end of fiscal Q3. As a reminder, our short-term investments are comprised of corporate bonds and commercial paper and are classified as held for sale. Total long-term debt was $684.7 million, inclusive of capital leases. Our long-term debt of $655 million, which is covenant-light, had minimal annual principal repayment until its maturity in May 2024. MACOM also has an undrawn $160 million credit line available through November 2021.

截至 2019 年 9 月會計年度年末，現金、約當現金及短期投資為 1.767 億美元，較會計年度第三季末的 1.858 億美元減少 910 萬美元。提醒一下，我們的短期投資由公司債與商業本票構成，並分類為持有供出售。長期負債總額為 6.847 億美元，包含資本租賃。我們 6.55 億美元的長期負債屬於輕契約（covenant-light），在 2024 年 5 月到期前，每年本金償還金額極少。MACOM 另有一筆 1.6 億美元的未動用信用額度，可使用至 2021 年 11 月。

Before turning it back to Steve, there are a couple of accounting items I would like to provide commentary on. We had a onetime, noncash GAAP tax benefit of approximately $37 million in Q4 associated with a planned intercompany transfer of assets between 2 of our international legal entities. We do not expect this to affect our non-GAAP tax rate going forward.

在把話題交回給 Steve 之前，我想就幾個會計項目提供一些評論。我們在第四季認列了一次性、非現金的 GAAP 稅務利益，約 3,700 萬美元，與我們兩個國際法律實體之間一項規劃中的關係企業間資產移轉有關。我們預期這不會在未來影響我們的 non-GAAP 稅率。

Also, in keeping with best practices, going forward, we will no longer report non-GAAP revenue, and we have updated historical periods. This has resulted in the shift of revenue of $7 million and adjusted EPS of $0.10 from the third quarter 2018 to the second quarter of 2019. This update is reflected on our earnings release and impacts year-to-date amounts. As such, for the full year ended September 2019, revenue was $499.7 million, adjusted operating income was $10.9 million and adjusted diluted earnings per share was a negative $0.29.

另外，為了符合最佳實務，未來我們將不再揭露 non-GAAP 營收，並且我們已更新歷史期間數據。這導致 2018 年第三季的營收 700 萬美元以及調整後 EPS 0.10 美元，移轉至 2019 年第二季。此更新已反映在我們的財報新聞稿中，並影響年初至今的金額。因此，截至 2019 年 9 月止的全年，營收為 4.997 億美元，調整後營業利益為 1,090 萬美元，調整後稀釋每股盈餘為負 0.29 美元。

So in summary, we are pleased with our progress in Q4 2019. As Steve previously noted, we recently prepared our fiscal year 2020 internal annual operating plan, which lays out a path toward continued improvements in profitability and cash flow. While there's still a lot of work for us to do in order to achieve our longer-term objectives, we believe that we are entering fiscal 2020 with positive momentum.

總結來說，我們對 2019 年第四季的進展感到滿意。如 Steve 先前所提，我們近期完成了 2020 會計年度的內部年度營運計畫，該計畫勾勒出持續改善獲利能力與現金流的路徑。雖然為了達成我們較長期的目標仍有許多工作要做，但我們相信在進入 2020 會計年度時，我們正帶著正向動能前進。

I will now turn the discussion back over to Steve.

我現在把討論交回給 Steve。

Thank you, Jack. MACOM expects revenue in Q1 FY 2020 ending January 3, 2020, to be in the range of $113 million to $117 million. Adjusted gross margin is expected to be in the range of 53% to 55%. And adjusted earnings per share is expected to be between $0.01 and $0.05 per share based on 67.5 million fully diluted shares. Our Q1 revenue projections include expectations that all 3 of our end markets will grow sequentially. Growth will be led by our Data Center end market, followed by growth in our Telecom and Industrial & Defense end markets.

謝謝你，Jack。MACOM 預期 2020 會計年度第一季（截至 2020 年 1 月 3 日）營收將介於 1.13 億至 1.17 億美元。調整後毛利率預期介於 53% 至 55%。以 6,750 萬股完全稀釋股數計算，調整後每股盈餘預期介於每股 0.01 至 0.05 美元。我們對第一季營收的預估包含三個終端市場皆將呈現季增的預期。成長將由資料中心終端市場帶動，其次為電信以及工業與國防終端市場的成長。

In summary, we are excited about the multiple revenue growth opportunities in front of us, and we are focused on execution and planning. 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.

總結來說，我們對眼前多項營收成長機會感到振奮，並專注於執行與規劃。我們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。

I would now like to ask the operator to take any questions.

我現在想請接線員開始接受提問。

(Operator Instructions) Our first question comes from Harsh Kumar with Piper Jaffray.

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

Congratulations on very strong results and continued progress here. I think, Steve, when you're talking about the guidance, you're saying all end markets will grow. I get the Data Center side, we're getting a lot of data points about the Data Center side growing. But I was curious, what is turning around in the -- particularly in the Telecom side for you? And that it's coming back strong. I mean I guess, from such a deficit that you reported in the September quarter, I'd be curious. And then also, perhaps what is working on the defense and industrial side?

恭喜你們交出非常強勁的成果並持續取得進展。Steve，我想你在談到財測時表示所有終端市場都會成長。資料中心這一塊我理解，我們也看到很多資料點顯示資料中心在成長。但我很好奇，對你們而言，特別是在電信端到底是什麼正在好轉？而且看起來回升得很強。我的意思是，從你們在 9 月季度所揭露的那樣的缺口來看，我會很好奇。另外，國防與工業端有哪些因素在發揮作用？

Sure. So on the Telecom side, growth is being driven primarily by 5G fronthaul. We're seeing some of our high-performance analogue products have success there. So we're pleased about that. And then on our defense side, it has, as I pointed out in the script, a lot to do with our radar programs and airborne receiver programs that we support.

當然。在電信端，成長主要由 5G 前傳（fronthaul）所帶動。我們看到部分高效能類比產品在那裡取得成功。因此我們對此感到滿意。至於國防端，如我在講稿中指出的，主要與我們所支援的雷達專案以及機載接收器專案有很大關係。

Okay. Great. And then is -- a lot of the companies are now saying parts of Huawei business can be recognized. I would just -- wanted to clarify is, is Huawei one of the things that's coming back for you? Or how are you looking at that particular piece of -- at that particular customer?

好的。很好。另外，現在很多公司都在說華為業務的部分可以認列。我只是想釐清一下：華為是否是你們正在回升的因素之一？或者你們如何看待這一塊——就這個特定客戶而言？

I would say it's not coming back. I would say it's going down. That's the trend. So as we look forward in terms of our growth, we think we'll continue to grow even as our Huawei business declines. We'd like to think this is temporary, and perhaps in the future, when -- if and when they come off the entity list, then we'll certainly reengage, and that could provide us some potential upside. But all of our planning, all of our focus right now is certainly ex Huawei.

我會說它並沒有回來。我會說它正在下滑。這就是趨勢。因此就我們展望成長而言，我們認為即使華為業務下滑，我們仍會持續成長。我們希望這是暫時的，未來如果——在他們被移出實體清單（entity list）之時或之後，我們當然會重新接觸，這可能帶來一些潛在上行空間。但我們目前所有的規劃與所有的重點，確實都是排除華為（ex Huawei）。

Okay. And last one for me. Data Center was a big number 2 or 3 quarters ago and dropped down to about $16 million, $17 million. Now it's back up in the 20s. What is the real number that we should be thinking about that you can -- that's a legitimate number for us to think about in terms of you getting back -- your company getting back to that level?

好的。我最後一個問題。資料中心在兩到三個季度前是一個很大的數字，之後降到大約 1,600 萬、1,700 萬美元。現在又回到 2,000 多萬美元。就你們公司回到那個水準而言，你認為我們應該把哪個數字視為較「真實」、也就是合理可參考的水準？

Well, I think there's going to be 2 phases. The near-term phase will be, I would say, incremental growth due to our contributions to 100G platforms, where we have very competitive CDRs, TIAs and drivers. I think as we look out maybe 2 or 3 quarters, we'll supplement that with some leading TIAs as well as what I would consider high-frequency opto drivers. And then a little bit further out from there, we think our photodetectors and our silicon photonics will start to contribute.

我想會有兩個階段。短期階段我會說是逐步成長，來自我們對 100G 平台的貢獻；在那裡我們的 CDR、TIA 與驅動器具有很強的競爭力。我想再往外看大概兩到三個季度，我們會再以一些領先的 TIA 以及我認為的高頻光電驅動器來補強。再更長期一些，我們認為我們的光偵測器（photodetectors）與矽光子（silicon photonics）將開始貢獻。

So the near term, it's going to be a lot of the HPA products that we've been very successful with. As the data rates go up, specifically 400G, we have products that are winning sockets, as I mentioned, the TIAs, the drivers in some of our detectors. And then long term, silicon photonics.

所以短期來看，將會主要是我們一直非常成功的 HPA 產品。隨著資料速率提升，特別是 400G，我們有產品正在取得設計導入（winning sockets），如我提到的 TIA、驅動器以及部分偵測器。而長期則是矽光子。

Our next question comes from Blayne Curtis with Barclays.

我們的下一個問題來自 Barclays 的 Blayne Curtis。

This is Tom O'Malley on for Blayne Curtis. Congratulations on the nice results here. I wanted to start with just the forming of the new organization, and you guys have done a good job of kind of describing here how you have a top 10 priority list in different areas where you're focused on the business, and you highlighted a couple in the script. Can you talk about, just in terms of growth, of those opportunities that you laid out, where you're most excited and where you could see the most growth? Obviously, Data Center is starting to reaccelerate now, but is there an area where you think that you could really see a revenue profile change in the business overall?

我是代 Blayne Curtis 提問的 Tom O'Malley。恭喜你們取得不錯的成果。我想先從新組織的建立談起；你們在這裡對於如何在不同領域列出前十大優先事項、並聚焦於業務，描述得很清楚，也在講稿中強調了其中幾項。就成長而言，能否談談在你們列出的那些機會中，你們最感到興奮的是哪些、以及你們認為成長空間最大的在哪裡？顯然資料中心現在開始再加速，但是否有某個領域，你認為可能會讓整體業務的營收輪廓出現明顯改變？

Right. So yes, I think there is. And I think some of those transformational step-ups in revenue are certainly out in the future. In terms of the near term, which is what we're really focused on, I think we're going to see incremental growth from product-driven strategies based on our existing portfolio. So we're looking at things like the front-end modules that I talked about. We're looking at all sorts of components for 5G fronthaul.

是的。我認為確實有。而且我認為其中一些具轉型意義的營收躍升，肯定是在更長遠的未來。就我們真正聚焦的短期而言，我認為我們將會看到基於既有產品組合、由產品驅動策略所帶來的逐步成長。因此我們在看我提到的前端模組等項目。我們也在看各式各樣用於 5G 前傳的元件。

When I look at our MMIC product line, I think there's tremendous opportunities to embellish the current portfolio set. So I wouldn't want to necessarily call out any one particular product area or technology group. I think they all have tremendous growth opportunity.

當我檢視我們的 MMIC 產品線時，我認為在現有產品組合上有非常巨大的機會可以加以強化與擴充。因此我不一定想特別點名任何單一的產品領域或技術團隊。我認為它們全都有非常可觀的成長機會。

Remember, MACOM right now, as Jack said, last year, we were just under $500 million. We are very small relative to the size of the markets that we serve. So with our breadth of technology, including the diodes, the MMICs, the high-performance analogue components as well as then the Lightwave Components when we look at the laser portfolio, when we look at our photodetectors. And then the silicon photonics, which is certainly very interesting. And then, of course, the power, I'll mention that we are very active, and part of our reorganization was certainly updating the organization and the strategy around our power and GaN activities.

請記得，MACOM 目前如 Jack 所說，去年我們的營收略低於 5 億美元。相較於我們所服務市場的規模，我們其實非常小。因此，憑藉我們廣泛的技術版圖，包括二極體、MMIC、高效能類比元件，以及在雷射產品組合中所涵蓋的光波元件（Lightwave Components），例如我們的雷射產品線與光偵測器。再加上矽光子，這當然非常有意思。另外當然還有電源（power）領域；我也要提到我們非常積極，而我們這次重組的一部分，確實是更新組織架構與策略，以聚焦在我們的電源與 GaN 相關活動。

So each one of these groups has tremendous opportunity for growth. We have put in place, what I believe, very rational and aggressive business-savvy leaders that will drive the technology road maps as well as keep a keen eye on budgets. So I think we have the right team. I think we have the right technology set. And our goal here is to certainly win more market share than we've done in the past.

所以這些團隊每一個都有非常巨大的成長機會。我們已經配置了我認為非常理性且進取、並具備商業敏銳度的領導者，他們將推動技術路線圖，同時也會密切關注預算。因此我認為我們有對的團隊。我認為我們也有對的技術組合。而我們的目標，當然是要贏得比過去更多的市占率。

Great. That's really helpful. And then I just wanted to dive into some of the longer-term opportunities you talked about as well. You mentioned the PAM4 DSP, silicon photonics, GaN on Silicon. I think before the transition, there was a policy of focusing on things a little further out. But I think that people have continued to ask on the opportunity with GaN on Silicon, just given how present 5G is going into 2020. And at a time, I think that was one of the businesses larger drivers. Can you update us on where that stands with you today from a more conservative view? And what do you guys think you have in terms of technology and what the size of that market may be for you?

很好。這真的很有幫助。接著我也想深入談談你提到的一些較長期的機會。你提到了 PAM4 DSP、矽光子、矽基 GaN（GaN on Silicon）。我想在交接之前，公司有一個政策是把重心放在更長遠一些的事情上。但我認為大家仍持續在問矽基 GaN 的機會，尤其考量到 5G 在邁入 2020 年時的能見度很高。而在某個時期，我想那也是較大的業務驅動因素之一。你能否以較保守的觀點，更新一下你們目前在這方面的進展？以及你們認為自己在技術上具備什麼、而這個市場對你們而言可能有多大？

Sure. Maybe I'll just give a quick GaN update. So just to remind everybody, we are today shipping GaN on Silicon amplifiers and components, primarily for 4G and high-reliability mobile radios, military manpack-type radios, and that's a very -- these are very successful sockets that customers are really enjoying the performance of the products. I think over the next 12 months, we'll see incremental growth within this product set.

當然。也許我先快速更新一下 GaN 的狀況。提醒大家一下，我們目前正在出貨矽基 GaN 的放大器與元件，主要用於 4G 與高可靠度的行動無線電、軍用背負式（manpack）無線電等；而且這些都是非常成功的設計導入（socket），客戶對產品效能非常滿意。我認為在接下來 12 個月內，我們會在這個產品組合中看到逐步的成長。

The second area, perhaps that you've alluded to is our activity with working with ST. That program continues. The recent update is the capital equipment is now moving towards ST. We are focused very much on really polishing the specifications that we're looking at in terms of process technology as well as working with ST on schedules. We have recently done a complete review of pricing with ST to make sure we fully understand the cost of the technology when we're at high-volume production. And I think those conversations were very productive. And so that program is on schedule. I won't go any further than that other than to remind everybody that this is a significant technology development.

第二個領域，可能就是你所提到的我們與 ST 合作的活動。該計畫仍在持續進行。最近的更新是，資本設備現在正移轉至 ST。我們非常專注於把我們在製程技術規格上的要求進一步打磨完善，同時也與 ST 一起協調時程。我們最近也與 ST 完整檢視了定價，以確保我們在進入高量產時，能充分理解該技術的成本結構。我認為那些討論非常有成效。因此該計畫進度符合時程。除了提醒大家這是一項重要的技術開發之外，我就不再多談。

The third item is -- I'll point out regarding GaN is, as we reorganized, we combined our traditional GaN on Silicon team with our group that was focused on bipolar transistors. We put them all under one organization. And that has a benefit because now we're bringing a broader capability to the engineering team. We are also, I'll point out, opening up the aperture slightly regarding our GaN on Silicon and GaN on Silicon Carbide strategy. We're now having our technologists do baseline characterization on different GaN on Silicon Carbide transistors. We believe that there is a place for this technology in our portfolio, especially at the higher powers, the higher frequencies. And some of our military and satellite customers are very interested in having MACOM participate here.

第三點——我想就 GaN 補充說明的是，隨著我們重組，我們把傳統的矽基 GaN 團隊與原本專注於雙極性電晶體的團隊合併。我們把他們都納入同一個組織之下。這帶來的好處是，我們現在能為工程團隊帶來更廣泛的能力。另外我也要指出，我們在矽基 GaN 與碳化矽基 GaN（GaN on Silicon Carbide）的策略上，正稍微擴大視野。我們現在讓技術團隊針對不同的碳化矽基 GaN 電晶體進行基準特性化（baseline characterization）。我們相信這項技術在我們的產品組合中有其位置，特別是在更高功率、更高頻率的應用上。而我們的一些軍用與衛星客戶也非常希望 MACOM 能在此領域參與。

So we are opening up the aperture, and we're bringing engineering efforts to really establish a baseline of where the industry is regarding, I'll say, 0.5 micron, 0.4 micron as well as 0.25 micron and even 0.1 micron GaN on Silicon Carbide. And so we believe, over the long term, our engineers should have access to the best technologies there are. As I mentioned actually on our last call, we have 2 foundries internally, but we also deal with 9 external foundries. And so we want our power amplifier group to be able to have access to the best technologies.

因此我們正在擴大視野，並投入工程資源，真正建立產業在我所稱的 0.5 微米、0.4 微米，以及 0.25 微米、甚至 0.1 微米碳化矽基 GaN 的基準水準。因此我們相信，從長期來看，我們的工程師應該能取得市面上最好的技術。正如我其實在上次電話會議提到的，我們內部有 2 座晶圓代工廠（foundries），但我們也與 9 家外部晶圓代工廠合作。因此我們希望我們的功率放大器團隊能取得最好的技術。

Now this will absolutely complement our GaN on Silicon efforts. We, today, still believe, that GaN on Silicon is the right process for massive MIMO, given the volumes, given the price points and given the low power levels. So this is not going to take away from that effort. It will certainly be additive.

這將會完全補強我們的矽基 GaN 努力。我們目前仍然相信，就大規模 MIMO 而言，考量到出貨量、價格帶以及較低的功率等級，矽基 GaN 是正確的製程選擇。因此這不會削弱那方面的投入。它肯定會是加分與增量。

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

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

Steve, I wanted just to get an update on the lasers. I think when you took over as CEO, you sort of implemented a review of the laser manufacturing and with an effort to try and reduce some of the scrap. Can you sort of tell us where you are in that effort to raise yields on the 25-gig lasers?

Steve，我想請你更新一下雷射的狀況。我記得你接任 CEO 時，你有對雷射製造導入一個檢討流程，並希望降低一些報廢（scrap）。你能否談談你們在提升 25G 雷射良率這項工作上，目前進展到哪裡？

And then a follow-up question. You had mentioned some new products, the FEMs and phase shifters, for sort of the 5G applications. What kind of time frame should we be thinking about in terms of revenue generation from those FEMs and phase shifters?

接著一個追問。你提到一些新產品，像是用於 5G 應用的 FEM 與移相器（phase shifters）。就這些 FEM 與移相器而言，我們應該以什麼樣的時間表來看待其開始貢獻營收？

Sure. So on the laser front, as you know, we have 3 different markets we service with our lasers. We have different data rates. We have different laser structures, and these lasers are used in different modulation schemes. So when we talk about 25G lasers, there's probably about 6 different versions of that.

好的。在雷射方面，如你所知，我們的雷射服務三個不同的市場。我們有不同的資料速率。我們有不同的雷射結構，而這些雷射用於不同的調變方案。因此當我們談到 25G 雷射時，可能大約有 6 種不同版本。

So let me talk about the near term and the laser revenues that we think we'll generate over the next 12 months, let's say. Certainly, 2.5 GPON is an important market for the company. It's been soft recently. We've had a lot of inventory in the channel over the last couple of quarters. So it really hasn't been contributing to our top line. We think that will change in about a quarter or 2, things will start to pick up. And that's an area where we've been very successful. And that's, of course, for the access market, let's say.

所以我先談談短期，以及我們認為在接下來 12 個月內可望產生的雷射營收。當然，2.5 GPON 對公司而言是一個重要市場。它最近偏弱。過去幾個季度我們在通路端有大量庫存。因此它確實沒有對我們的營收（top line）做出貢獻。我們認為大約再過 1 到 2 個季度情況會改變，需求會開始回升。而那是我們非常成功的一個領域。當然，那主要是接入市場（access market）。

We think, over time, the market will move to 10G, and we are working on the development of a laser for that market. It's early days. We're still in development mode, let's say, and I would put that towards maybe 9 to 12 months away, we should be in a position where we're having traction in the market with some of our products.

我們認為，隨著時間推進，市場會轉向 10G，而我們正在為該市場開發雷射。目前仍在早期階段。我們仍處於開發模式；我會把它放在大約 9 到 12 個月之後，屆時我們應該能在市場上以部分產品取得進展與動能（traction）。

When you talk about 25G lasers, I'll focus the conversation on 25G FP. That is a growth area for the company. We do expect to see new revenue to our top line in the next 12 months. This is primarily for 5G fronthaul applications. We think that we have some technical advantages over the competitors, and so we're taking advantage of that. And it will absolutely -- it will probably be the shining -- the bright shining light of the laser portfolio in the next 12 months.

當你談到 25G 雷射時，我會把對話聚焦在 25G FP。那是公司的一個成長領域。我們確實預期在未來 12 個月內，營收將為我們的營收總額帶來新增貢獻。這主要用於 5G 前傳（fronthaul）應用。我們認為相較競爭對手，我們具備一些技術優勢，因此正在善加利用。而且它絕對——它很可能會成為未來 12 個月雷射產品組合中最耀眼——最亮眼的亮點。

And then the last product I'll talk about specifically is our 10G FP lasers, which have historically been very strong in the market supporting 4G LTE backhaul. And that volume has been coming down for obvious reasons as those base station deployments are declining and other deployments are taking over.

接著我最後要特別談的產品是我們的 10G FP 雷射，過去在支援 4G LTE 回傳（backhaul）的市場上一直非常強勢。而由於基地台部署量下滑、其他部署逐步接手等顯而易見的原因，該產品的出貨量一直在下降。

In terms of the CW lasers and the DFB lasers for the Data Center, I would put all of those lasers in the category of R&D and product development. We still have a lot of work to do within our fab to dial things in with those lasers. One mistake we won't make again is starting production before we have a product that's fully qualified and will run a high yield. So it's absolutely unacceptable to be having these large scraps or write-offs due to starting production, and then ultimately, having the product fail to qual or have a very low yield. So we won't be doing that again.

至於資料中心用的 CW 雷射與 DFB 雷射，我會把這些雷射都歸類在研發與產品開發的範疇。我們在自家晶圓廠（fab）內仍有大量工作要做，才能把這些雷射的製程與參數調校到位。有一個錯誤我們不會再犯：在產品尚未完全通過認證、且能以高良率運行之前就開始量產。因此，因為一開始量產，最後產品卻無法通過認證或良率非常低，而造成大量報廢或沖銷，這是絕對不可接受的。所以我們不會再這麼做。

I guess you added -- sorry, you added also a question about our FEMs and phase shifters. The FEM revenue, we expect in this fiscal year. The phase shifters also this fiscal year, I'll just highlight the phase shifters. These are low- to medium-volume, high-ASP-type products. So it'll be buried within the portfolio.

我想你還補充——抱歉，你也問到了我們的 FEM 與移相器（phase shifters）。FEM 的營收，我們預期會在本會計年度出現。移相器也是在本會計年度；我就特別強調一下移相器。這些是低到中等出貨量、但 ASP 較高的產品類型。因此它會被包含在整體產品組合之中，不會特別凸顯。

Our next question comes from Tore Svanberg with Stifel.

下一個問題來自 Stifel 的 Tore Svanberg。

Yes. Congratulations on the diligent process here. Steve, could you talk a little bit about any sort of product or product lines you may have shut down or pruned? I mean obviously, you had a $50 million OpEx reduction. So any visibility you can share with us on product lines or technologies that may have been shut down or pruned at this point?

是的。恭喜你們在這裡展現出嚴謹的流程。Steve，你能否談談你們是否關閉或修剪了任何產品或產品線？我的意思是，很明顯你們削減了 5,000 萬美元的營運費用（OpEx）。所以你們是否能分享一些能見度：目前有哪些產品線或技術已被關閉或修剪？

I can only mention the one that we previously discussed on our last call, which was the optical modules for data centers. That's one that we've highlighted that we have exited that business. We think that was the right decision even today. But I can't really add any more comments in terms of pruning or focusing or deemphasizing product lines. That's certainly part of our strategic planning process and our internal reviews are -- these are things we constantly do. And so we've not made any announcements at this point on that particular question.

我只能提到我們在上一次電話會議中已經討論過的那一項，也就是資料中心用的光模組。那是我們已經強調過、並且已退出的業務。我們認為即使以今天來看，那也是正確的決定。但就修剪、聚焦或降低某些產品線優先順序而言，我無法再補充更多評論。那當然是我們策略規劃流程的一部分，而我們的內部檢視——這些都是我們持續在做的事情。因此，針對你這個特定問題，我們目前尚未做出任何公告。

That's very clear. As a follow-up, and when you talked about sort of the long-term and technologies that have potential, you mentioned PAM4 DSP, that I think, near term, you're kind of also working more on PAM4 more from an analogue perspective. So could you reconcile those 2 for us? And do you intend to actually invest in both analogue and potential PAM4 DSP?

這很清楚。追問一下，當你談到長期以及具有潛力的技術時，你提到了 PAM4 DSP；而我認為短期內你們也更偏向從類比（analogue）的角度來做 PAM4。你能否幫我們釐清這兩者之間的關係？以及你們是否打算同時投資於類比與潛在的 PAM4 DSP？

Yes, we have -- as you know, we have a few DSP programs underway. We have actually 2 captured customers, and we plan on adding a third DSP at some point in time to our portfolio. And so there's a coherent version and there's a PAM4 DSP version. I really don't want to go into any more details than that. So that's -- those are programs that the company has been working on for a number of years. We're not providing any updates tonight in terms of the status of those programs other than we continue to work on them.

是的，我們——如你所知，我們有幾個 DSP 專案正在進行中。我們其實已經拿下 2 家客戶，並計畫在某個時間點把第三個 DSP 納入我們的產品組合。因此有一個相干（coherent）版本，也有一個 PAM4 DSP 版本。我真的不想再深入更多細節。總之——這些專案公司已經投入並推進了好幾年。今晚我們不會就這些專案的狀態提供任何更新，除了我們仍持續在推進它們。

Regarding other areas where we contribute to sort of PAM4 products, 200 and 400G areas where we have what I consider the HPA products, these are CDRs, drivers, TIAs, these would all fit nicely inside of an analogue PAM4 solution.

至於我們在其他領域對 PAM4 產品的貢獻，在 200G 與 400G 領域，我們有所謂我認為是 HPA 的產品，包括 CDR、驅動器（drivers）、TIA；這些都非常適合整合在一個類比 PAM4 解決方案之中。

Our next question comes from Harlan Sur with JPMorgan.

下一個問題來自 JPMorgan 的 Harlan Sur。

Congrats on the solid execution. In thinking about the longer-term gross margin potential for MACOM, and if I look at your catalog products of MMICs and diodes and switches and whatnot, most of these products that are probably situated in your I&D business and maybe some in your Telecom business. In your prior company, these products are driving 70%-plus gross margins. So what's the gross margin profile of MACOM's catalog business relative to that 70%-plus profile? And if there is a large difference, if you can maybe help us understand why.

恭喜你們執行得很扎實。在思考 MACOM 長期毛利率的潛力時，如果我看你們的型錄產品，例如 MMIC、二極體、開關等等，這些產品多數可能位於你們的 I&D 業務中，電信業務中也可能有一些。在你之前的公司，這些產品帶動的毛利率是 70% 以上。那麼，MACOM 的型錄業務毛利率輪廓，相較於那個 70% 以上的水準如何？如果差異很大，能否也幫我們理解原因？

Okay. So I'm not sure we typically provide the gross margin by product line or by product set, as an example, the catalog business that you mentioned. And I will say that we have the continuum of gross margins. We have products that are above 70% and we have products that are below our corporate average. So what you're, of course, seeing is a blended average.

好的。我不確定我們是否通常會按產品線或產品組合提供毛利率，例如你提到的型錄業務。我會說，我們的毛利率是連續分布的。我們有一些產品高於 70%，也有一些產品低於公司的平均水準。所以你看到的當然是一個加權後的綜合平均。

Jack, do you want to comment more on that?

Jack，你要不要再補充一下？

Just -- I mean with regard to our overall margins. We're looking to definitely make improvements over time. We realize where we're at from an industry perspective, and we want to get that above-average phase at some point in time in the future. So focusing on the margin improvement is an area that we have. And with our guidance here in Q1, we've got a bit of an uptick in the guidance range that we put for the gross margin.

就是——我的意思是，關於我們整體的毛利率。我們確實希望隨時間推進能持續改善。我們了解從產業角度來看我們目前所處的位置，也希望在未來某個時間點能提升到高於平均的水準。因此，聚焦毛利率改善是我們的一個重點方向。而在我們對 Q1 的指引中，我們給出的毛利率指引區間也有些微上調。

I appreciate the insights there. And the team has been engaged in a number of active antenna programs for both civil- and defense-related initiatives with this SPAR power architecture. Can you guys just give us an update on these programs and revenue contribution or maybe potential timing of tangible revenue contribution?

感謝你們的見解。另外，團隊在採用這種 SPAR 功率架構的情況下，已參與多個主動式天線（active antenna）專案，涵蓋民用與國防相關的計畫。你們能否就這些專案提供最新進展，以及營收貢獻，或是可能開始產生實質營收貢獻的時間點？

Yes. I would -- we look at the -- that particular program, the sensor program that you're talking about is a long-term program. I don't think it will be adding any material revenue to our top line in the next 12 months. We continue to engage customers that are interested in the technology. We've put together what we think is a very interesting architecture. We have done an outstanding job with the packaging technology that's associated with this platform. And so we continue to share our information and our technology with the major primes. But I would say for the next 12 months, I would temper expectations there. The main radar programs that we are looking at are really long-term programs that are, I would characterize as being in their infancy regarding having the end customer define the requirement. So we're talking about many years before a significant contribution to the top line.

是的。我會——我們看待你所提到的那個特定專案，也就是感測器專案，是一個長期專案。我不認為它會在未來 12 個月內對我們的營收總額帶來任何重大的營收貢獻。我們持續與對這項技術有興趣的客戶互動。我們建立了一個我們認為非常有意思的架構。在與此平台相關的封裝技術方面，我們也做得非常出色。因此我們持續與主要的主承包商（major primes）分享我們的資訊與技術。但我會說，在未來 12 個月內，對此的期待需要保守一些。我們正在關注的主要雷達專案確實是長期專案；我會形容它們仍處於非常早期的階段，因為終端客戶還在定義需求。所以距離對營收總額做出顯著貢獻，還需要很多年。

Our next question comes from Mark Delaney with Goldman Sachs.

下一個問題來自 Goldman Sachs 的 Mark Delaney。

Thanks for all the details on the efforts underway at the company. My first question was on the 2020 plan. Steve, you mentioned the company has a plan in place for -- I think you said revenue cost and potentially free cash flow. Are there any more details you can share with investors about what those metrics may look like?

感謝你提供公司目前正在推動各項工作的所有細節。我的第一個問題是關於 2020 年計畫。Steve，你提到公司已經有一個計畫——我想你說的是營收、成本以及可能的自由現金流。你是否能與投資人分享更多細節，說明這些指標可能會呈現什麼樣的狀況？

Not specifically.

沒有特別的。

Okay. Maybe just a follow-up then on bookings. If my math is right, I think -- or you said book-to-bill was 1.1 and a second quarter in a row, I think, of positive book-to-bill, which is nice to see. I think the absolute bookings numbers may be down a little bit in terms of -- in dollars, maybe down about 5% quarter-on-quarter but obviously with a positive book-to-bill. Is there anything you can share in terms of kind of the absolute change in bookings versus last quarter? Or is it just sort of normal quarter-to-quarter fluctuations or -- and any areas where bookings were a bit softer?

好的。那我再追問一下訂單（bookings）。如果我算得沒錯，我想——或者你說訂單出貨比（book-to-bill）是 1.1，而且我想這是連續第二季為正的訂單出貨比，這點很高興看到。我認為以絕對訂單金額來看——以美元計，可能較上季小幅下降，大概季對季下降約 5%，但顯然訂單出貨比仍為正。你能否分享一下，訂單相較上一季在絕對值上的變化大概如何？或者這只是正常的季對季波動？以及是否有任何領域的訂單相對偏弱？

Yes, Mark, this is Jack. So quarter-over-quarter, the bookings were about flat, maybe a little bit up. But based on the lower revenue we had last quarter in Q3, that drove obviously a higher book-to-bill ratio of 1.2.

是的，Mark，我是 Jack。所以以季對季來看，訂單大致持平，可能還略有上升。但由於我們上一季 Q3 的營收較低，這顯然推升了訂單出貨比到 1.2。

Okay. That's helpful clarification. And just my last one, Jack, I think you guided for positive operating cash flow for next quarter, which is very nice to see after kind of what was reported this current quarter. I know there's a lot of work underway just to get there. In terms of free cash flow, when should we think about positive free cash flow?

好的。這個釐清很有幫助。最後一個問題，Jack，我想你指引下一季營運現金流將轉為正值，這在本季所呈現的情況之後，確實很樂見。我知道為了達成這點正在進行很多工作。就自由現金流而言，我們應該在什麼時候期待自由現金流轉正？

Yes. Obviously, cash flow continues to be an area of focus, and historically, has been an area of focus for us. Even if you look at our full year 2019, we did generate positive operating cash flow of around $20 million to $21 million. So we want to make sure we're staying focused on that piece of it. Here in the fourth quarter, we did have some cash flow headwinds, as I had described, including some cash payments associated with the restructuring actions. So that was a bit of a headwind here in Q4.

是的。顯然，現金流仍然是我們的重點領域，而且歷來一直是我們關注的重點。即使你看我們 2019 全年，我們確實產生了約 2,000 萬到 2,100 萬美元的正向營運現金流。因此我們希望確保持續聚焦在這一塊。在第四季，我們確實如我所描述的遇到一些現金流逆風，包括與重組行動相關的一些現金支付。所以這在 Q4 對我們造成了一些逆風。

Some of that will linger on, as we've noted, with some of those restructuring costs working their way into the remainder of 2020, but we do feel relatively confident about our cash flow, specifically the operating cash flow side of things. Capital can tend to be a bit lumpy, as we had described. So that would obviously impact our free cash flow.

其中一部分會如我們所提到的持續一段時間，因為部分重組成本會在 2020 年剩餘期間逐步反映出來，但我們對現金流、特別是營運現金流這一端，仍相對有信心。資本支出可能會如我們所說的那樣較為不均勻（lumpy）。因此這顯然會影響我們的自由現金流。

So it's going to continue to be an area of focus for us as we go out into the future. And as Steve and I had mentioned, our internal operating plan does provide for cash flow improvements as we work our way through the years.

所以，展望未來，這仍將是我們持續聚焦的領域。正如 Steve 和我提到的，我們的內部營運計畫確實在我們逐年推進的過程中，規劃了現金流的改善。

We have a follow-up question from the line of Tore Svanberg with Stifel.

我們接到 Stifel 的 Tore Svanberg 來電提出追問。

Just sort of a follow up for Jack. So just to clarify because you're going to be reporting GAAP numbers going forward. The guidance you gave, is that a GAAP guidance or a non-GAAP guidance, especially on the EPS number?

我想針對 Jack 再追問一下。為了釐清，因為你們未來將改為報告 GAAP 數字。你們提供的指引是 GAAP 指引還是非 GAAP 指引，特別是每股盈餘（EPS）的數字？

No, that was non-GAAP guidance between $0.01 and $0.05 for Q1.

不是，那是非 GAAP 指引，Q1 介於 0.01 美元到 0.05 美元之間。

Very good. Okay. Very good. And will you be sharing with us some of your noncash items, stock comp and things like that when you do publish the GAAP numbers?

很好。好的。非常好。那你們在公布 GAAP 數字時，會不會也跟我們分享一些非現金項目、股票酬勞（stock comp）之類的內容？

Yes. As we've -- as detailed in the earnings release, there is a full reconciliation between GAAP and non-GAAP. All those items are listed out.

會的。如我們在財報新聞稿中所詳述，GAAP 與非 GAAP 之間有完整的調節表。所有那些項目都有逐一列出。

No, but I mean, since you're moving to GAAP-only, I'm just -- I want to make -- just wondering what the -- what you will be sharing with us going forward.

不過我的意思是，既然你們要改為只提供 GAAP，我只是——我想確認——想知道你們未來會跟我們分享哪些內容。

I think the clarification there then is, in terms of our guidance, it's non-GAAP-related. I think the point that you might be making is we did make an adjustment here in terms of our GAAP revenue to non-GAAP revenue. We had -- historically had some differences, and we cleaned that legacy item up here in the fourth quarter. It had no impact on the current quarter. It was more of a legacy item that we were addressing with the change.

我想這裡需要釐清的是，就我們的指引而言，是以非 GAAP 為基礎。我想你可能在指出的是，我們這次確實就 GAAP 營收到非 GAAP 營收做了一項調整。我們過去在這方面有一些差異，而我們在第四季把這個歷史遺留項目整理清楚了。這對本季沒有影響。這更多是我們配合變更而處理的一個歷史遺留項目。

We have a follow-up question from the line of Harsh Kumar with Piper Jaffray.

我們接到 Piper Jaffray 的 Harsh Kumar 來電提出追問。

Clearly, I mean, your comments sound like things are moving. Your company should be able to grow revenues. I was curious how we should think about operating expenses going forward, particularly into December and then also beyond that as revenue grows. And then my second question was if you -- Jack, maybe if you take out the severance piece, how does the free cash flow look a quarter, 2 quarters out or whatever time frame you want to take to talk about it?

很明顯，你們的評論聽起來事情正在推進。你們公司應該有能力讓營收成長。我想了解的是，我們應該如何看待未來的營運費用，特別是進入 12 月以及之後隨著營收成長的情況。第二個問題是，如果你——Jack，也許如果把資遣費那一塊拿掉，自由現金流在一季、兩季之後或你想談的任何時間範圍內，看起來會是什麼樣子？

Yes. So from an operating expense perspective, we came in here in the fourth quarter, around $51 million, a little bit north of that. Our guidance kind of gets you to that rough range for the Q1 time period. Q1 does have some headwinds that we would be facing. That's the beginning of our merit process. So I think, coming in, in at that level, feels right. And from a cash flow perspective, as we had mentioned, some of those restructuring items was a headwind that hit us here in the fourth quarter, it was roughly about $5 million to $6 million that hit us in Q4. So that should not repeat at those same levels in Q1 and beyond.

是的。就營運費用而言，我們在第四季約為 5,100 萬美元，略高於這個水準。我們的指引大致也會讓你在 Q1 期間落在這個區間附近。Q1 確實會面臨一些逆風。那是我們績效調薪（merit）流程的開始。所以我認為，以那個水準進來是合理的。就現金流而言，如我們提到的，一些重組項目是我們在第四季遭遇的逆風，Q4 約有 500 萬到 600 萬美元的影響。因此在 Q1 以及之後，應該不會以同樣的水準重複發生。

And that concludes today's question-and-answer session. I'd like to turn the call back to Mr. Daly for closing remarks.

以上為今天的問答環節。我想把電話交回給 Daly 先生做結語。

Thank you. In closing, Jack and I would like to thank our employees for their efforts throughout the past quarter and the last fiscal year. We have a talented management team, a world-class employee base, and together, I'm confident we can achieve our objectives. Thank you.

謝謝。最後，Jack 和我想感謝我們的員工在過去一季以及上一個會計年度中的努力。我們擁有優秀的管理團隊、世界級的員工陣容，我有信心我們能一起達成目標。謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。感謝各位參與。您現在可以掛線。