(MTSI) 2024 Q1 法說會逐字稿

Welcome to MACOM's First Fiscal Quarter 2024 Conference Call. This call is being recorded today, Thursday, February 1, 2024. (Operator Instructions). I will now turn the call to Mr. Steve Ferranti, MACOM's Vice President of Corporate Development and Investor Relations. Mr. Ferranti, please go ahead.

歡迎參加 MACOM 2024 年第一財季電話會議。本次通話將於今天（2024 年 2 月 1 日星期四）錄音。（操作員說明）。我現在將電話轉給 MACOM 企業發展和投資者關係副總裁 Steve Ferranti 先生。費蘭蒂先生，請繼續。

Thank you, Olivia. Good morning, and welcome to our call to discuss MACOM's financial results for the first fiscal quarter of 2024.

謝謝你，奧莉維亞。早安，歡迎致電討論 MACOM 2024 年第一財季的財務表現。

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 a more detailed discussion of risks and uncertainties that could result in those differences, we refer you to MACOM's filings with the SEC.

我想提醒大家，我們今天的討論將包含前瞻性陳述，這些陳述受到1995 年《私人證券訴訟改革法案》中前瞻性陳述安全港所定義的某些風險和不確定性的影響。實際結果可能會受到影響。與今天討論的內容有重大不同。有關可能導致這些差異的風險和不確定性的更詳細討論，我們建議您參閱 MACOM 向 SEC 提交的文件。

Management's statements during this call will also include discussion 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. With that, I'll turn over the call to Steve Daly, President and CEO of MACOM.

管理階層在本次電話會議期間的聲明還將包括對某些調整後的非公認會計準則財務資訊的討論。公司新聞稿和今天向 SEC 提交的相關表格 8-K 中提供了 GAAP 與調整後的非 GAAP 業績的調整表。接下來，我會將電話轉給 MACOM 總裁兼執行長 Steve Daly。

Thank you, and good morning. Before I review the quarter's results, I would like to acknowledge the passing of John Ocampo, our Chairman this past November. His contributions to the semiconductor industry, educational institutions and charitable organizations to help make the world a better place. His vision to make MACOM a world-class company lives on.

謝謝你，早安。在回顧本季的業績之前，我想對去年 11 月我們的董事長約翰·奧坎波 (John Ocampo) 的去世表示感謝。他對半導體產業、教育機構和慈善組織做出了貢獻，幫助世界變得更美好。他將 MACOM 打造成世界一流公司的願景一直延續下去。

Now I will provide a general company update. After that, Jack Kober, our Chief Financial Officer, will provide a more in-depth review of our first quarter results for fiscal 2024. When Jack is finished, I will provide revenue and earnings guidance for the second fiscal quarter of 2024, and then we will be happy to take some questions.

現在我將提供公司的整體更新。之後，我們的財務長傑克·科伯將對我們 2024 財年第一季的業績進行更深入的審查。傑克完成後，我將提供 2024 年第二財季的收入和盈利指引，然後我們很樂意回答一些問題。

Revenue for Q1 was $157 million. Adjusted EPS was $0.58 per diluted share, and operating cash flow was approximately $33 million. MACOM's core business was essentially flat quarter-over-quarter. But in total, our revenue grew by 4.5% sequentially, including approximately $6 million from the Wolfspeed RF business acquisition, which closed on December 2, 2023.

第一季營收為 1.57 億美元。調整後每股攤薄每股收益為 0.58 美元，營運現金流約 3,300 萬美元。 MACOM 的核心業務較上季基本持平。但總的來說，我們的收入環比成長了 4.5%，其中包括 2023 年 12 月 2 日完成的 Wolfspeed RF 業務收購帶來的約 600 萬美元。

We ended the quarter with approximately $463 million in cash and short-term investments on our balance sheet. Our business remains healthy and profitable and we continue to generate strong cash flow while improving in future growth opportunities.

截至本季末，我們的資產負債表上約有 4.63 億美元的現金和短期投資。我們的業務保持健康和獲利，我們繼續產生強勁的現金流，同時改善未來的成長機會。

In Q1, our book-to-bill ratio was 0.9:1. In our turns business, or orders booked and shipped within the quarter, was approximately 26% of total revenue. Separately, our acquired RF business included a significant amount of backlog, which provides us increased visibility over the next few quarters. Fiscal Q1 revenue by end market was as expected, with Industrial and Defense at $77 million, Data Center at $49.5 million and Telecom at $30.6 million. For the quarter, I&D was down 3% sequentially, Data Center was up 22% sequentially and Telecom was flat sequentially.

第一季度，我們的訂單出貨比為 0.9:1。在我們的周轉業務中，即本季內預訂和發貨的訂單，約佔總收入的 26%。另外，我們收購的射頻業務包括大量積壓訂單，這使我們在接下來的幾季中獲得了更高的可見度。按終端市場劃分的第一財季收入符合預期，其中工業和國防收入為 7,700 萬美元，資料中心收入為 4,950 萬美元，電信收入為 3,060 萬美元。本季度，I&D 環比下降 3%，資料中心環比成長 22%，電信環比持平。

We maintain a highly diversified customer base consisting of thousands of customers across a broad range of end markets, and our strategy is to further diversify and expand our geographic and industry exposure. We continue to see new growth opportunities in all our end markets.

我們維持著高度多元化的客戶群，由來自廣泛終端市場的數千名客戶組成，我們的策略是進一步多元化並擴大我們的地理和行業影響力。我們繼續在所有終端市場看到新的成長機會。

Industrial and Defense is our largest market and has been steadily growing over the past few years. Defense orders remain robust while, industrial orders remain weak. Overall, I&D revenue was down sequentially in Q1, primarily due to weakness in the industrial markets. We believe the long-term trends for our I&D business are favorable, and our growth strategies are working.

工業和國防是我們最大的市場，並且在過去幾年中一直在穩步成長。國防訂單依然強勁，而工業訂單依然疲軟。總體而言，第一季 I&D 收入環比下降，主要是由於工業市場疲軟。我們相信，我們的研發業務的長期趨勢是有利的，而且我們的成長策略正在發揮作用。

Our focus over the last few years has been on building out and improving the competitiveness of our established mimic and diode product lines to cover more functions, power levels and higher frequency ranges. Expanding our addressable market opportunity through organic and new technology developments like KV caps, BAW filters and high-frequency GaN, adding new product categories such as RF over fiber and cross-selling our optical and high-speed analog product lines. In total, we address a wide range of applications within the I&D market. Our opportunity pipeline with major defense customers is robust and our capture rate for future business looks strong.

過去幾年我們的重點是建立和提高我們已建立的類比和二極體產品線的競爭力，以涵蓋更多功能、功率等級和更高的頻率範圍。透過 KV 電容器、BAW 濾波器和高頻 GaN 等有機新技術開發，增加光纖射頻等新產品類別，以及交叉銷售我們的光學和高速模擬產品線，擴大我們的潛在市場機會。總的來說，我們解決了 I&D 市場中的廣泛應用。我們與主要國防客戶的機會管道很強大，我們對未來業務的捕獲率看起來也很高。

Our Data Center end market revenues grew sequentially in Q1. Demand continues to be very strong within 100G per lane, 400G and 800G short-reach optical connectivity solutions. Customer demand for shipments exceeded our expectations during our Q1 and Q4 as certain customers ramped up production. Given the fast growth rates and shipments in the past 2 quarters, we are anticipating reduced shipments in Q2. However, our current expectation is the demand for high-speed products will remain steady over the next couple of quarters.

我們的資料中心終端市場營收在第一季連續成長。每通道 100G、400G 和 800G 短距離光纖連接解決方案的需求仍然非常強勁。由於某些客戶提高了產量，第一季和第四季客戶的出貨需求超出了我們的預期。鑑於過去兩個季度的快速成長率和出貨量，我們預計第二季的出貨量將減少。然而，我們目前的預期是，未來幾季對高速產品的需求將保持穩定。

MACOM's linear product portfolio continues to grow. We recently announced the addition of a new dual channel laser driver and transimpedance amplifier or TIA products supplementing our existing portfolio of 4 and 8 channel products. These products feature high bandwidth, broad dynamic range and low noise to enable linear pluggable or LPO solutions in targeted applications and form factors. These new solutions can provide a cost and power optimized solution for SFP DD and SFP 112 optical form factors targeting Ethernet, Fiber Channel and InfiniBand applications.

MACOM 的線性產品組合持續成長。我們最近宣布增加一款新的雙通道雷射驅動器和跨阻放大器或 TIA 產品，以補充我們現有的 4 通道和 8 通道產品組合。這些產品具有高頻寬、寬動態範圍和低雜訊的特點，可在目標應用和外形尺寸中實現線性可插拔或 LPO 解決方案。這些新解決方案可為面向乙太網路、光纖通道和 InfiniBand 應用的 SFP DD 和 SFP 112 光學外形尺寸提供成本和功耗最佳化的解決方案。

We are also seeing the opportunity to further expand in other high-volume applications by implementing linear drive connectivity and network interface cards or NIC to support 100G per lane optical to switch to server connections.

我們還看到了透過實施線性磁碟機連接和網路介面卡或 NIC 來進一步擴展其他大容量應用的機會，以支援每通道 100G 光纖切換到伺服器連線。

Finally, our R&D teams are actively engaged in developing the next-generation solutions at 200G per lane to further enable 1.6 terabit per second applications. We support a broad spectrum of applications, including DSP-based solutions, linear pluggable optics and coherent. The full breadth of MACOM's high-performance analog and photonic capabilities will be on display at this year's Optical Fiber Conference, or OFC, in San Diego in March. Our team is planning a variety of live demonstrations, including multiple hardware examples of 100G per lane, linear pluggable optical or LPO module solutions showing interoperability. 200G per lane, single mode fiber LPOs and 200G active copper cable solutions. These products will support high-speed opportunities, including the latest disaggregated data center architectures.

最後，我們的研發團隊積極致力於開發每通道 200G 的下一代解決方案，以進一步實現每秒 1.6 太比特的應用。我們支援廣泛的應用，包括基於 DSP 的解決方案、線性可插拔光學元件和相干元件。 MACOM 的高性能模擬和光子功能的全部內容將在今年 3 月於聖地亞哥舉行的光纖會議 (OFC) 上全面展示。我們的團隊正在計劃各種現場演示，包括每通道 100G 的多個硬體範例、線性可插拔光纖或 LPO 模組解決方案，以展示互通性。每通道 200G、單模光纖 LPO 和 200G 主動銅纜解決方案。這些產品將支援高速機遇，包括最新的分類資料中心架構。

Overall demand in our Telecom end market continues to be weak with revenues down approximately 50% compared to just 4 quarters ago. Demand weakness is broad-based, spanning most of our larger market subsegments, including 5G, metro/long haul, cable infrastructure and passive optical networks. And in many of these markets, customers continue to reduce inventory or suffer from weak demand.

我們的電信終端市場的整體需求持續疲軟，營收較 4 個季度前下降了約 50%。需求疲軟是廣泛的，涵蓋我們大部分較大的細分市場，包括 5G、城域/長途、電纜基礎設施和被動光網路。在許多這樣的市場中，客戶不斷減少庫存或遭受需求疲軟的影響。

While we remain cautious on certain portions of the telecom market, we are excited about the expansion of our technology portfolio and customer engagements within telecom. We believe Telecom remains an attractive and diverse market for MACOM. It provides opportunities to differentiate based on product quality and performance as data speeds continue to increase across wireless, wireline, cable and satellite networks globally, we see numerous opportunities for MACOM. And of course, we believe our RF power product line is well positioned to capture market share. And over time, we expect to be a much larger player in this market.

雖然我們對電信市場的某些部分保持謹慎態度，但我們對電信領域技術組合和客戶參與的擴展感到興奮。我們相信電信對 MACOM 來說仍然是一個有吸引力且多元化的市場。隨著全球無線、有線、有線和衛星網路的數據速度不斷提高，它提供了基於產品品質和性能實現差異化的機會，我們看到了 MACOM 的眾多機會。當然，我們相信我們的射頻功率產品線處於有利地位，可以佔領市場份額。隨著時間的推移，我們預計將成為這個市場上更大的參與者。

We also believe the SatCom portion of the Telecom market will continue to provide exciting opportunities for MACOM in FY '24 and beyond. And we see an expanding SAM for ground terminals, gateways and space-based hardware. We can provide these customers unique, high-performance IC and module solutions based on proprietary semiconductor process technologies and capabilities.

我們也相信，電信市場的 SatCom 部分將在 24 財年及以後繼續為 MACOM 提供令人興奮的機會。我們還看到了用於地面終端、網關和天基硬體的不斷擴展的地對空飛彈。我們可以基於專有的半導體製程技術和能力，為這些客戶提供獨特的高效能 IC 和模組解決方案。

In addition, we added to our already growing space in SatCom portfolio with the acquisition of Linear Communications Group. This acquisition added design capabilities in solid-state power amplifiers or SSPAs, and stand-alone linearizers for ground station and satellite applications.

此外，透過收購線性通訊集團，我們在衛星通訊產品組合中已經不斷成長的空間進一步擴大。此次收購增加了固態功率放大器或 SSPA 以及用於地面站和衛星應用的獨立線性化器的設計能力。

We expanded our capabilities last year in millimeter wave frequencies with the opening of our MACOM European Semiconductor Center, MESC, which recently received European Space Agency qualification on certain of its key semiconductor processes and products.

去年，我們開設了 MACOM 歐洲半導體中心 MESC，擴大了我們在毫米波頻率方面的能力，該中心最近在某些關鍵半導體工藝和產品方面獲得了歐洲航天局的資格。

And finally, we continue to expand our RF, microwave and millimeter wave assembly and test capabilities for special microwave components and subassemblies for satellite, military, test equipment and other high-performance applications. We leverage our custom mimic and analog ICs with specialized PCB materials and unique interconnect technology and assembly techniques to create smaller size solutions compared to our competition.

最後，我們繼續擴大我們的射頻、微波和毫米波組裝和測試能力，用於衛星、軍事、測試設備和其他高性能應用的特殊微波元件和組件。與我們的競爭對手相比，我們利用客製化模擬和模擬 IC 以及專門的 PCB 材料和獨特的互連技術和組裝技術來創建更小尺寸的解決方案。

On a related note, we look forward to participating in the upcoming satellite conference in Washington, D.C. in March. The conference provides our team an opportunity to engage with various satellite manufacturers and industry groups to discuss requirements for traditional defense and commercial satellite constellations. We see a great opportunity to support new commercial constellations targeting high-speed broadband Internet connectivity and direct to sell applications. We believe our comprehensive product portfolio is ideal for this market segment, which requires optical, RF, millimeter and microwave technologies from the IC component level up to the subsystem level.

與此相關的是，我們期待參加三月即將在華盛頓特區舉行的衛星會議。這次會議為我們的團隊提供了與各個衛星製造商和行業團體接觸的機會，討論傳統國防和商業衛星星座的要求。我們看到了支援高速寬頻網路連線和直銷應用程式的新商業星座的絕佳機會。我們相信，我們全面的產品組合非常適合這個細分市場，該細分市場需要從 IC 組件級到子系統級的光學、射頻、毫米波和微波技術。

I would like to update investors on our recently closed acquisition of Wolfspeed's RF business. We are excited to take ownership of this compelling technology and product portfolio and advance its ongoing business activities. The acquired process technologies and products are highly complementary to our existing portfolio and support our goal of SAM expansion within our target markets. Our GaN on silicon carbide RF product portfolio is now one of the most advanced and complete portfolios in the industry. We estimate the RF GaN market to be a $2 billion SAM and forecasts predict the market will grow to approximately $3 billion by 2027, primarily driven by the increased adoption of GaN in defense and commercial wireless applications.

我想向投資者通報我們最近完成的 Wolfspeed 射頻業務收購的最新情況。我們很高興能夠擁有這項引人注目的技術和產品組合，並推進其正在進行的業務活動。所收購的製程技術和產品與我們現有的產品組合高度互補，並支持我們在目標市場內擴展 SAM 的目標。我們的碳化矽基氮化鎵射頻產品組合現已成為業界最先進、最完整的產品組合之一。我們估計 RF GaN 市場規模為 20 億美元 SAM，並預測到 2027 年該市場將增長至約 30 億美元，這主要是由於國防和商業無線應用中越來越多地採用 GaN。

Our RF GaN portfolio now supports a wide range of low-frequency applications, including ground-based radar systems, electronic warfare and terrestrial communication systems as well as very high frequency applications including various DoD systems and terrestrial and satellite communication systems. We believe our GaN team has industry-leading depth and experience, and I'm confident we can disrupt the industry with further GaN epi, semiconductor process and IC design innovation, which will ultimately lead to market share gains in the years ahead.

我們的 RF GaN 產品組合現在支援廣泛的低頻應用，包括地面雷達系統、電子戰和地面通訊系統，以及甚高頻應用，包括各種國防部系統以及地面和衛星通訊系統。我們相信我們的 GaN 團隊擁有領先業界的深度和經驗，我相信我們可以透過進一步的 GaN 外延、半導體製程和 IC 設計創新來顛覆產業，這最終將在未來幾年帶來市場份額的成長。

A few other comments regarding the transaction. First, prior to closing, we identified significant synergies and took actions to enable the business to meet an important objective to improve profitability and to be accretive to our bottom line. And based on our current projections, we believe the acquisition will modestly contribute to our earnings in Q2. Of course, we still have a great deal of work ahead of us to improve the overall profitability of the product line.

關於交易的其他一些評論。首先，在交易完成之前，我們確定了顯著的協同效應，並採取了行動，使業務能夠實現提高盈利能力並增加我們利潤的重要目標。根據我們目前的預測，我們相信此次收購將對我們第二季的獲利做出適度貢獻。當然，要提高產品線的整體獲利能力，我們還有大量的工作要做。

Second, our respective integration teams established a plan to enable the acquired business to be fully operational within MACOM immediately after closing. We met our goal in a few days after the closing, the RF business was operating within MACOM's systems environment, including IT, HR, ERP and financial reporting systems. And most important, over the next 12 to 18 months, we expect to make meaningful progress on improving operational efficiencies, profitability and expanding revenue within the RF business.

其次，我們各自的整合團隊制定了一項計劃，使收購的業務能夠在交割後立即在 MACOM 內全面運作。交易結束後幾天我們就達到了我們的目標，RF業務在MACOM的系統環境中運行，包括IT、HR、ERP和財務報告系統。最重要的是，在未來 12 至 18 個月內，我們預計將在提高射頻業務的營運效率、獲利能力和擴大收入方面取得有意義的進展。

In summary, MACOM now has a wider range of products than ever before. Many of these products have long life cycles and will produce revenue for years after they've been introduced. We view these business attributes as an inherent strength of our business model.

總而言之，MACOM 現在擁有比以往更廣泛的產品。其中許多產品的生命週期很長，在推出後多年都會產生收入。我們將這些業務屬性視為我們業務模式的固有優勢。

Before I turn the discussion over to Jack, I would like to welcome Raj Shanmugaraj, an independent director to our Board. Raj brings extensive telecommunications hardware expertise and decades of industry experience to MACOM. He was previously the President and CEO of Acacia, a leader in coherent products and components which was acquired by Cisco in 2021. The management team and the Board of Directors look forward to working with Raj.

在將討論交給 Jack 之前，我想歡迎獨立董事 Raj Shanmugaraj 加入我們的董事會。 Raj 為 MACOM 帶來了豐富的電信硬體專業知識和數十年的行業經驗。他曾擔任 Acacia 的總裁兼首席執行官，該公司是相干產品和組件領域的領導者，於 2021 年被思科收購。管理團隊和董事會期待與 Raj 合作。

Jack will now provide a more detailed review of our financial results.

傑克現在將對我們的財務業績進行更詳細的審查。

Thank you, Steve, and good morning to everyone. Revenue for the fiscal first quarter was $157.1 million, up 4.5% sequentially based on growth in our Data Center end market. Revenue in Q1 included approximately $6 million, which was a partial month contribution from the RF business, which closed on December 2, 2023.

謝謝你，史蒂夫，祝大家早安。第一財季營收為 1.571 億美元，由於資料中心終端市場的成長，季增 4.5%。第一季的收入包括約 600 萬美元，這是 RF 業務的部分月度貢獻，該業務於 2023 年 12 月 2 日結束。

On a geographic basis, revenue from U.S. customers represented approximately 44% of our fiscal Q1 results. Adjusted gross profit for fiscal Q1 was $93.1 million or 59.2% of revenue compared to 60.1% in fiscal Q4. The decrease was due to the RF business acquisition, which had gross margins lower than MACOM's corporate average.

從地理來看，來自美國客戶的營收約占我們第一財季績效的 44%。第一財季調整後毛利為 9,310 萬美元，佔營收的 59.2%，而第四財季為 60.1%。下降的原因是射頻業務收購，該業務的毛利率低於 MACOM 的公司平均值。

The adjusted operating expense for our first fiscal quarter was $54.5 million, consisting of research and development expense of $35.7 million and selling, general and administrative expense of $18.8 million. Total operating expenses were sequentially up by $1.4 million, mostly due to added R&D expense from the acquired RF business, partially offset by lower discretionary spending. Adjusted operating income in fiscal Q1 was $38.6 million, up from $37.2 million in fiscal Q4 2023. Adjusted operating margin was 24.5%, down 20 basis points from fiscal Q4. We see opportunities for improving our operating leverage over the course of fiscal year 2024 as we continue to focus on operational excellence and exercise discretionary spending discipline across the entire business.

第一財季調整後的營運費用為 5,450 萬美元，其中研發費用為 3,570 萬美元，銷售、一般和管理費用為 1,880 萬美元。總營運費用比上一季增加了 140 萬美元，主要是由於收購的 RF 業務增加了研發費用，部分被可自由支配支出的減少所抵消。第一財季調整後營業收入為 3,860 萬美元，高於 2023 年第四財季的 3,720 萬美元。調整後營業利潤率為 24.5%，較第四財季下降 20 個基點。隨著我們繼續專注於卓越營運並在整個業務中實行可自由支配的支出紀律，我們看到了在 2024 財年提高營運槓桿的機會。

Depreciation expense for fiscal Q1 was $6.2 million, and adjusted EBITDA was $44.7 million. Trailing 12 months adjusted EBITDA was $193.2 million. Adjusted net interest income for fiscal Q1 was $4.6 million, roughly $400,000 higher than the prior quarter due to favorable yields on our short-term investment portfolio. We expect interest income to decline slightly next quarter based on the lower cash balance following the RF business acquisition.

第一財季的折舊費用為 620 萬美元，調整後的 EBITDA 為 4,470 萬美元。過去 12 個月調整後 EBITDA 為 1.932 億美元。由於我們的短期投資組合收益率良好，第一財季調整後淨利息收入為 460 萬美元，比上一季高出約 40 萬美元。由於收購 RF 業務後現金餘額減少，我們預計下季利息收入將小幅下降。

Our adjusted income tax rate in fiscal Q1 was 3% and resulted in an expense of approximately $1.3 million. Our net cash tax payments were approximately $900,000 for the first fiscal quarter. We expect our adjusted income tax rate to remain at 3% for fiscal year 2024 and into fiscal year 2025. Fiscal Q1 adjusted net income was $41.8 million compared to $40.1 million in fiscal Q4 2023. Adjusted earnings per fully diluted share was $0.58 and utilizing a share count of 72.3 million shares compared to $0.56 of adjusted earnings per share in fiscal Q4.

我們第一財季調整後的所得稅稅率為 3%，導致費用約為 130 萬美元。第一財季我們的淨現金稅約 90 萬美元。我們預計2024 財年及2025 財年的調整後所得稅率將維持在3%。第一財季調整後淨利為4,180 萬美元，而2023 年第四財季為4,010 萬美元。調整後完全稀釋每股收益為0.58 美元，利用股票數量為 7,230 萬股，而第四財季調整後每股收益為 0.56 美元。

Based on the applicable accounting rules, our diluted share count was 72.3 million for Q1, including approximately 1/3 of the 712,000 shares issued to the seller in connection with the RF business acquisition. And our Q2 diluted share forecast of $73 million will include all of these shares.

根據適用的會計規則，我們第一季的稀釋後股票數量為 7,230 萬股，其中包括因收購 RF 業務而向賣方發行的 712,000 股股票中的約 1/3。我們對第二季稀釋後股票的預測為 7,300 萬美元，其中包括所有這些股票。

Now moving on to operational balance sheet and cash flow items. Our Q1 accounts receivable balance was $101.1 million, up from $91.3 million in fiscal Q4 2023, primarily due to incremental December revenue from the acquired RF business. As a result, days sales outstanding were 59 days compared to 55 days in the prior quarter. Inventories were $159.5 million at quarter end, up sequentially from $136.3 million. Inventory turns were 1.6x, down sequentially in Q1 from 1.8x in the prior quarter. The sequential increase in our inventory balance and associated decrease in turns were a result of the acquired RF business. This incremental inventory will support the business' strategic defense, industrial and communications infrastructure customers. We expect to improve inventory turns within the RF business in the coming quarters as we will now manage wafer starts and other material purchases for the RF business.

現在轉向營運資產負債表和現金流量項目。我們第一季的應收帳款餘額為 1.011 億美元，高於 2023 年第四季的 9,130​​ 萬美元，這主要是由於 12 月收購的 RF 業務帶來的收入增加。結果，應收帳款天數為 59 天，而上一季為 55 天。季末庫存為 1.595 億美元，高於上一季的 1.363 億美元。第一季庫存週轉率為 1.6 倍，較上一季的 1.8 倍下降。我們的庫存餘額連續增加以及相關週轉量的減少是收購 RF 業務的結果。這項增量庫存將為該公司的戰略國防、工業和通訊基礎設施客戶提供支援。我們預計未來幾季將改善射頻業務的庫存週轉率，因為我們現在將管理射頻業務的晶圓啟動和其他材料採購。

Fiscal Q1 cash flow from operations was approximately $33.1 million, down from $50.4 million sequentially due to increases in working capital items and onetime acquisition-related costs paid during the quarter.

第一財季營運現金流量約 3,310 萬美元，低於上一季的 5,040 萬美元，原因是本季支付的營運資本項目和一次性收購相關成本增加。

As we look forward in fiscal year 2024, we will remain focused on cash generation, and we expect our cash flow from operations to exceed our Q1 level. Capital expenditures totaled $4.7 million for fiscal Q1. During fiscal year 2024, we expect our capital expenditures to be in the range of $30 million to $35 million for the full fiscal year. Even with our expansion of our operations, we continue to effectively manage our CapEx budgets.

展望 2024 財年，我們將繼續專注於現金生成，我們預計營運現金流將超過第一季的水準。第一財季的資本支出總計 470 萬美元。 2024 財年，我們預計整個財年的資本支出將在 3,000 萬至 3,500 萬美元之間。即使我們擴大業務，我們仍繼續有效管理我們的資本支出預算。

Next, moving on to other balance sheet items. Cash, cash equivalents and short-term investments for the first fiscal quarter were $463.3 million, down $51.2 million sequentially, driven by $75 million of cash consideration paid for the acquisition of the RF business, partially offset by cash generated from the base MACOM business.

接下來，轉向其他資產負債表項目。第一財季的現金、現金等價物和短期投資為4.633 億美元，比上一財季減少5120 萬美元，原因是為收購RF 業務支付了7500 萬美元的現金對價，部分被基本MACOM 業務產生的現金所抵消。

Prior to handing the call back to Steve, I would like to provide some additional commentary on the recently acquired RF business. We see many opportunities for our combined teams to drive revenue growth and achieve operating excellence as we go forward. In addition, as previously noted, the RF business will dilute our gross margins in the near term. However, we do expect the acquired business to be accretive to our Q2 non-GAAP earnings. As we improve operational execution, realize additional post-closing synergies, refined business strategies, and accelerate the introduction of new products, we expect our consolidated corporate adjusted gross margins to return to historical levels in excess of 60%. I will now turn the call back over to Steve.

在將電話轉回給 Steve 之前，我想對最近收購的 RF 業務提供一些額外的評論。隨著我們的前進，我們看到我們的合併團隊有很多機會推動收入成長並實現卓越營運。此外，如前所述，射頻業務將在短期內稀釋我們的毛利率。然而，我們確實預期收購的業務將增加我們第二季的非公認會計原則收益。隨著我們提高營運執行力、實現額外的交割後協同效應、完善業務策略並加速新產品的推出，我們預計我們的綜合企業調整後毛利率將恢復到 60% 以上的歷史水準。我現在將把電話轉回給史蒂夫。

Thank you, Jack. MACOM expects revenue in fiscal Q2 ending March 29, 2024, to be in the range of $178 million to $184 million. Adjusted gross margin is expected to be in the range of 56% to 58%, and adjusted earnings per share is expected to be between $0.56 and $0.62 based on 73 million fully diluted shares. In fiscal Q2, we expect I&D and Telecom revenues to increase sequentially by approximately 20% and 50%, respectively, compared to the prior quarter. Data Center revenues are expected to be down 15%.

謝謝你，傑克。 MACOM 預計截至 2024 年 3 月 29 日的第二財季營收將介於 1.78 億美元至 1.84 億美元之間。調整後毛利率預計在 56% 至 58% 之間，調整後每股盈餘預計在 0.56 美元至 0.62 美元之間（基於 7,300 萬股完全稀釋股票）。在第二財季，我們預計 I&D 和電信營收將比上一季分別較上季成長約 20% 和 50%。資料中心收入預計將下降 15%。

Two final comments on MACOM's base business. First, we see ongoing weakness in the telecom and industrial markets throughout 2024, and we expect our base business to be flat in Q2. That said, even with the weak markets, we believe we can modestly grow our base revenues and profits in the second half of FY '24. Second, I'll note at current revenue levels, MACOM's base business gross and operating margins are under pressure relative to prior periods. As revenues recover in our base business, we expect to return to prior profit levels. I would now like to ask the operator to take any questions.

關於 MACOM 基礎業務的兩個最終評論。首先，我們預計整個 2024 年電信和工業市場將持續疲軟，我們預計第二季的基礎業務將持平。也就是說，即使市場疲軟，我們也相信我們可以在 24 財年下半年適度成長我們的基本收入和利潤。其次，我要指出的是，在目前的收入水準上，MACOM 的基礎業務毛利率和營業利潤率相對於前期面臨壓力。隨著我們基礎業務的收入恢復，我們預計將恢復到先前的利潤水平。我現在想請接線生回答任何問題。

(Operator Instructions) Our first question coming from the line of Thomas O'malley with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的托馬斯·奧馬利。

I guess the first one is on Data Center. So in your prepared remarks, you kind of talked about very strong growth in the September and December quarter and kind of taking maybe a little bit of a breather from that into March. Could you just describe the dynamic there? Is that inventory positions being worked down? Is that demand slowing? And then -- could you talk about -- is this a temporary pause in March? Or do you think that things remain weak for longer than just 1 quarter?

我想第一個是在資料中心。因此，在您準備好的演講中，您談到了 9 月和 12 月季度的強勁增長，以及從 3 月開始可能會稍作喘息。您能描述一下那裡的動態嗎？庫存部位是否正在減少？這種需求正在放緩嗎？然後——你能談談——這是三月的暫時停頓嗎？還是您認為經濟持續疲軟的時間是否超過一個季度？

Sure. Tom, maybe I'll make a few comments about the overall Data Center market and then we can talk about the revenue trends. So we are definitely seeing a lot of activity across our customer base as it relates to moving to the higher data rates. So that is a general trend where there's an incredible amount of work at both 400 and 800 gig solutions. We are providing products for those solutions in production today. That has been driving our growth over the past couple of quarters.

當然。湯姆，也許我會對整個資料中心市場發表一些評論，然後我們可以討論收入趨勢。因此，我們確實看到我們的客戶群開展了大量活動，因為這與轉向更高的數據速率有關。因此，這是一個總體趨勢，400 和 800 演出解決方案的工作量都令人難以置信。我們正在為當今生產中的這些解決方案提供產品。這一直在推動我們過去幾個季度的成長。

Included in that is contributing products that we call linear drive products. And while it's still very early, we do see increased interest in this product set in this architecture for these systems. And so we're continuing to work with industry and customers to better understand how to use those type solutions. And so ultimately, we think that will add further growth as we move into the year and even into next year.

其中包括我們稱為線性驅動產品的貢獻產品。雖然現在還為時過早，但我們確實看到人們對這些系統架構中的產品集越來越感興趣。因此，我們將繼續與行業和客戶合作，以更好地了解如何使用這些類型的解決方案。因此，最終，我們認為，隨著我們進入今年甚至明年，這將進一步促進成長。

The other trend I would highlight is with the 100-gig SerDes becoming more omnipresent across the market. We think that will stimulate more demand for the -- sort of in the traditional architectures. So our goal as a company is to focus on analog solutions. We want to have the best drivers, TIAs, equalizers and linear drive products, crosspoint switches, servicing the highest data rates. We believe we have one of the best signal integrity teams in the industry. And we're very focused on NPI as it relates to our new product development.

我要強調的另一個趨勢是 100g SerDes 在市場上變得越來越普遍。我們認為這將刺激對傳統架構的更多需求。因此，我們公司的目標是專注於模擬解決方案。我們希望擁有最好的驅動器、TIA、均衡器和線性驅動產品、交叉點開關，為最高資料速率提供服務。我們相信我們擁有業內最好的訊號完整性團隊之一。我們非常關注 NPI，因為它與我們的新產品開發相關。

Now most of our revenue and backlog, like I mentioned, is at the higher data rates. We have a very strong backlog at 800 gig today. We have very good visibility into our lead customers' ramp schedules. And as they're bringing hardware in, they're beginning to modulate some of the shipments, that's why we're dipping down in Q2. But I would highlight that we actually, as a company, this past Q1, it was actually a record level of shipments into the data center at just about $50 million, just under $50 million. So we're not really surprised or concerned that there will be a dip down.

正如我所提到的，現在我們的大部分收入和積壓訂單都來自更高的數據速率。今天我們的積壓量非常大，達到 800 場。我們對主要客戶的產能計劃有很好的了解。當他們引入硬體時，他們開始調整一些出貨量，這就是我們在第二季下降的原因。但我要強調的是，實際上，作為一家公司，在過去的第一季度，資料中心的出貨量實際上達到了創紀錄的水平，約為 5,000 萬美元，略低於 5,000 萬美元。因此，我們對於價格下跌並不感到驚訝或擔心。

We think the long-term trends are favorable. We expect to see moderation in Q3 and Q4 as other programs come online. So while we're not giving guidance for Q3 and Q4, we have an expectation that will remain or build upon the levels that we're seeing in Q2.

我們認為長期趨勢是有利的。隨著其他計劃上線，我們預計第三季和第四季將會放緩。因此，雖然我們沒有為第三季和第四季提供指導，但我們預計該指導將保持或建立在我們在第二季度看到的水平上。

Very helpful. And just as a follow-up, when you guys closed the Wolf acquisition or when you first talked about guidance, you had talked about $150 million a year and then revenue contribution. Obviously, things get a little messy with the stuff. But if I'm doing my math right here, it looks like in March, if you're talking about that core business the way you are, Wolf is around $24 million, which is just a little bit below that $150 million run rate.

很有幫助。作為後續行動，當你們完成對 Wolf 的收購時，或者當你們第一次談論指導時，你們談論了每年 1.5 億美元，然後是收入貢獻。顯然，事情變得有點混亂。但如果我在這裡算一下，看起來在 3 月份，如果你按照現在的方式談論核心業務，Wolf 的營收約為 2400 萬美元，僅略低於 1.5 億美元的運行率。

Could you talk about, one, is that $150 million kind of like more of a run rate where that business is growing into that? Or what's going on with that acquired asset where it's a little bit below that run rate right now?

您能否談談，第一，1.5 億美元是否更像是該業務正在成長的運行率？或者，所收購的資產目前的運作率略低於運行率，情況如何？

Yes. So from the point of announcement of the transaction in August till December when we closed, the run rate for that business has declined. It was over $40 million, and it's come down to about a $30 million run rate. When we look at our Q2 guide, we are including in that $30 million contribution from the Wolfspeed business, plus or minus a little bit.

是的。因此，從 8 月宣布交易到 12 月我們關閉期間，該業務的運作率一直在下降。成本超過 4000 萬美元，現在運行費用已降至 3000 萬美元左右。當我們查看第二季度指南時，我們將 Wolfspeed 業務的 3000 萬美元貢獻納入其中，並增加或減少。

So you're correct in your sort of comment that things have come down a bit. That is primarily due to the Telecom portion of the business being weaker than, let's say, it was 6 months ago. But then when we look at the returns and the contribution and the cash generated by the business, I have to just highlight, number one, we acquired a business that was fundamentally losing a lot of money. It had very high expenses, very high material costs.

所以你的評論是正確的，事情已經下降。這主要是由於該業務的電信部分比 6 個月前弱。但當我們看到企業的回報、貢獻和現金時，我必須強調，第一，我們收購了一家從根本上虧損了許多錢的企業。它的費用非常高，材料成本非常高。

And so we fundamentally changed the way that business is running through the acquisition process that I talked about. So when it actually came into MACOM in the first full quarter, it will add about $0.01 in Q2 is our thinking. And that is really the beginning. And as we look at the cash that will be generated over the next 12 months and then the following 12 months, we see that this business in the next 12 months can easily generate $20 million in that ballpark. And then year 2, certainly in the mid-30s and year 3 in the mid-40s. So when we add those numbers up, we get pretty close to our purchase price.

因此，我們從根本上改變了業務在我談到的收購過程中運作的方式。因此，當它在第一個完整季度真正進入 MACOM 時，我們認為它將在第二季度增加約 0.01 美元。這才是真正的開始。當我們查看未來 12 個月以及接下來的 12 個月將產生的現金時，我們發現這項業務在未來 12 個月內可以輕鬆產生 2000 萬美元的收入。然後是第二年，當然 30 多歲，第三年是 40 多歲。因此，當我們將這些數字加起來時，我們就非常接近我們的購買價格。

What we need to do as a business is, number one, we need to grow the top line. We certainly need to address the margins as the business has come into MACOM, as Jack pointed out, with gross margins that are significantly below MACOM's corporate average. We don't see that we have to spend a lot of capital to do the work on this business. So we're actually quite excited. And I'll also highlight that when this management team took over running MACOM back in 2019, that first quarter where we provided results, our gross margins were below 40%. And it took us 8 quarters to get the business to 60% and another 5 quarters to get the business to almost 63%. And so we plan on running that same program on this business, which is today at a run rate of somewhere in $120 million and growing.

作為一家企業，我們需要做的第一件事是，我們需要增加收入。正如傑克指出的那樣，我們當然需要解決利潤問題，因為該業務已經進入 MACOM，毛利率大大低於 MACOM 的公司平均水平。我們不認為我們必須花費大量資金來開展這項業務。所以我們實際上非常興奮。我還要強調的是，當這個管理團隊在 2019 年接手 MACOM 的營運時，也就是我們提供業績的第一季度，我們的毛利率低於 40%。我們花了 8 個季度將業務提升到 60%，又花了 5 個季度才將業務提升到近 63%。因此，我們計劃在該業務上運行相同的計劃，目前該業務的運行速度約為 1.2 億美元，並且還在不斷增長。

And from a business point of view, we have an incredible team, incredible technologists, arguably number two in the U.S. as a merchant supplier of RF power GaN. It's an amazing fit to MACOM. And our team feels like we were just handed a bazooka and we're ready to go into the market and do some serious damage.

從商業角度來看，我們擁有一支令人難以置信的團隊和技術人員，可以說是美國排名第二的射頻功率 GaN 商業供應商。它非常適合 MACOM。我們的團隊感覺就像我們剛剛拿到了一個火箭筒，我們已經準備好進入市場並造成一些嚴重的破壞。

And our next question coming from the line of Quinn Bolton with Needham.

我們的下一個問題來自奎因·博爾頓和李約瑟的對話。

I just want to follow up on the Wolf business. Just to try to size the opportunity there. Obviously, it's coming below core MACOM. Steve, you mentioned that core MACOM margins are under pressure relative to the recent past, just given industry conditions, should we be thinking that core business probably in the kind of 59-ish percent range, and then Wolf takes you down to the guidance of 56%, I think, to 58% for the quarter. Is that kind of the right ballpark just to be thinking about where that base business may be settling in the near term?

我只是想跟進一下狼的事情。只是為了嘗試把握那裡的機會。顯然，它低於核心 MACOM。史蒂夫，您提到核心 MACOM 利潤率相對於最近的過去承受著壓力，考慮到行業狀況，我們是否應該認為核心業務可能在 59% 左右的範圍內，然後沃爾夫帶您去指導我認為本季為56% 至58%。僅考慮基礎業務在短期內的發展方向是否正確？

Right. So our modeling and our data right now in recent -- looking at the business as well as the trends, my comments revolved around coming off that peak of just under 63% and when we were at $180 million run rate for the core business, we're now at $151 million run rate for the business, and it's come down to 60%. We don't expect it to go below 60% for the core business.

正確的。因此，我們最近的建模和數據——從業務和趨勢來看，我的評論圍繞著擺脫略低於 63% 的峰值，當我們的核心業務運行率為 1.8 億美元時，我們目前該業務的運行率為1.51 億美元，但已下降至60%。我們預期核心業務不會低於 60%。

So I think you can then sort of back into the gross margins on the Wolfspeed side, which would get you to gross margins in sort of the low 40%, and Jack, I'll turn to you if you want to add to that.

所以我認為你可以回到 Wolfspeed 方面的毛利率，這將使你的毛利率達到 40% 左右，傑克，如果你想補充這一點，我會找你。

I think that was a good summary. I guess, just to follow up, Quinn, there's many things that we've done to structurally improve the base MACOM business from an overall cost perspective that have helped to preserve that 60% gross margin number that Steve was referring to. So expectation is, as we go forward, we'll be able to apply some of those same things that we've done with the base business to the Wolfspeed acquired business, and that will help support us. And then with some lift from a revenue perspective on the base business as well as with the acquired business, that will help improve margins as we go forward.

我認為這是一個很好的總結。我想，奎因，我想跟進一下，我們已經做了很多事情，從整體成本的角度結構性地改進了基本的MACOM 業務，這有助於保持史蒂夫提到的60% 的毛利率。因此，我們期望，隨著我們的前進，我們將能夠將我們在基礎業務中所做的一些相同的事情應用到 Wolfspeed 收購的業務中，這將有助於支持我們。然後，從基礎業務和收購業務的收入角度來看，這將有助於提高我們未來的利潤率。

Got it. And then a follow-up question which is, you guys -- I guess, Wolf will continue to operate that fab for the first 2 years. And so is there anything that handicaps you from being able to get into that fab to start to run your processes or to try to drive higher yields. I mean are you somewhat constrained with what you can do while the fab is being operated by Wolf or do you think you've got free access to the fab, you can start to implement your blocking and tackling, your know-how to start to improve those yields immediately post close?

知道了。然後是一個後續問題，你們——我想，沃爾夫將在前兩年繼續運作該工廠。那麼是否有任何因素阻礙您進入該晶圓廠開始運行您的製程或嘗試提高產量。我的意思是，當晶圓廠由Wolf 運營時，您可以做的事情是否受到某種限制，或者您認為您可以自由進入晶圓廠，您可以開始實施您的阻止和處理，您的專業知識開始收盤後立即提高這些收益率？

Sure. So I'll provide a lot of background information to help answer that question. So, we have, today, a foundry relationship with Wolfspeed where we buy wafers at effectively a fixed price. So that's point number one. And that will stay in place until the fab conveys in about 2 years. Second, Wolfspeed, as part of the transaction, we made -- there was a significant portion, $50 million of stock given to Wolfspeed. So they are now an equity holder in MACOM aligning our strategic goals. Third, we have something called the fab operating committee, which is comprised of both Wolfspeed and MACOM staff, who will work together to implement change in the fab with Wolfspeed support. And as you can see, it's within their -- it's beneficial for them to improve execution and yield because it lowers their cost of wafers they're selling to us. So everybody's goals are aligned.

當然。因此，我將提供大量背景資訊來幫助回答這個問題。因此，今天我們與 Wolfspeed 建立了代工關係，我們實際上以固定價格購買晶圓。這是第一點。這將保持不變，直到晶圓廠在大約兩年內交付為止。其次，Wolfspeed，作為交易的一部分，我們做了——有很大一部分，價值 5000 萬美元的股票給了 Wolfspeed。因此，他們現在是 MACOM 的股東，與我們的策略目標保持一致。第三，我們有一個稱為晶圓廠營運委員會的機構，由 Wolfspeed 和 MACOM 員工組成，他們將在 Wolfspeed 的支持下共同努力實施晶圓廠的變革。正如您所看到的，這對他們來說是有益的，提高執行力和產量，因為這降低了他們向我們銷售的晶圓成本。所以每個人的目標都是一致的。

And so it's -- we're just coming out of the gate. It's been 2 months. We have an amazing working relationship with the staff in North Carolina, both inside the fab and their technologists and whatnot around the fab. So we will be able to affect change, but there's boundary conditions, and I want to be clear that there's structure around that to make sure that we're able to do that. And so that was an important part of the transaction for MACOM, and we were able to have a great meeting of the minds on how to do that.

所以，我們剛剛走出大門。已經2個月了。我們與北卡羅來納州的員工有著令人驚嘆的工作關係，無論是工廠內部還是他們的技術人員以及工廠周圍的其他人員。因此，我們將能夠影響變革，但存在邊界條件，我想明確的是，圍繞它有一個結構，以確保我們能夠做到這一點。因此，這是 MACOM 交易的重要組成部分，我們能夠就如何做到這一點進行了一次很好的交流。

So that would certainly address making improvements inside the fab. When you move outside the fab and you look at the back-end assembly and test as well as all of the other inbound material costs associated with the business, we have full control over that. So we can make changes to OSAT contracts. We can look at yield enhancement on assembly and test, and we can bring the full force of MACOM to the back end, which is a significant part of the COGS to effect change, and we're doing that immediately.

因此，這肯定會解決晶圓廠內部的改進問題。當您移出晶圓廠並查看後端組裝和測試以及與業務相關的所有其他入庫材料成本時，我們對此擁有完全控制權。因此我們可以更改 OSAT 合約。我們可以著眼於組裝和測試的產量提高，我們可以將 MACOM 的全部力量帶到後端，這是實現變革的 COGS 的重要組成部分，我們正在立即這樣做。

Wolfspeed has a great team over in Malaysia, a great team out in Morgan Hill. They're rolling up their sleeves with the MACOM staff, and we're going to work. So there's many pieces that we'll be focused on.

Wolfspeed 在馬來西亞擁有一支出色的團隊，在摩根山 (Morgan Hill) 擁有一支出色的團隊。他們正在與 MACOM 員工一起捲起袖子，我們將開始工作。因此，我們將重點關注很多方面。

And then the other item I'll just highlight that there's also business-related practices that we will change and will bring in line with the way MACOM runs its business. For example, we don't like to rely on distribution channels. We like to deal with our major customers direct and we would rather engage and sell the full product line. And so we'll be looking at optimizing distribution, the use of distribution for selling these products. We'll certainly be looking at all the contracts that have been put in place whether it be long-term purchase agreements or foundry agreements, we certainly want to make sure that we can form that to the MACOM standards.

然後，我要強調的另一項是，我們將更改一些與業務相關的做法，並將其與 MACOM 經營其業務的方式保持一致。例如，我們不喜歡依賴分銷管道。我們喜歡直接與我們的主要客戶打交道，我們寧願參與並銷售整個產品線。因此，我們將考慮優化分銷，即利用分銷來銷售這些產品。我們當然會查看所有已簽訂的合同，無論是長期採購協議還是代工協議，我們當然希望確保我們能夠按照 MACOM 標準制定合約。

So we certainly have a lot of work to do. And as Jack mentioned and I highlighted, this is going to not be an instantaneous gratification. There's just a lot of hard work here, and you're going to -- our thinking is you'll see incremental improvement over time. And if we do that, it will meet our financial targets. And also, we will begin to dominate in the market.

所以我們當然還有很多工作要做。正如傑克所提到的和我強調的，這不會是即時的滿足。這裡有很多艱苦的工作，我們的想法是，隨著時間的推移，你會看到逐步的改進。如果我們這樣做，就能實現我們的財務目標。而且，我們將開始在市場上佔據主導地位。

Our next question coming from the line of Vivek Arya with Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的 Vivek Arya。

Thank you, Steve, for giving the color around the steps required to drive all the cost synergies. I was wondering if there is a way to quantify when you think the combined entity can get to that 60% or so gross margin level. Is that an 8-quarter type time line as you described in your historical activities? Or should we think about something different and something you can achieve faster?

史蒂夫，謝謝您對推動所有成本協同效應所需的步驟進行了闡述。我想知道是否有一種方法可以量化合併後的實體何時可以達到 60% 左右的毛利率水準。這是您在歷史活動中描述的 8 個季度類型的時間軸嗎？或者我們應該考慮一些不同的事情，一些你可以更快實現的事情？

So we don't have a sharp answer for you on that. We're starting in the low 40s. We'd like to exit our fiscal year close to 50%, if we can get to 49% or 50% for this business segment. Going into our fiscal '25, I think that would be a win. So that's -- we're sort of head down focused on pulling all the levers we can to make that happen.

所以我們對此沒有明確的答案。我們從 40 多歲開始。如果該業務部門能夠達到 49% 或 50%，我們希望在本財年結束時能夠實現接近 50% 的目標。進入我們的 25 財年，我認為這將是一場勝利。所以，我們正埋頭苦幹，竭盡全力來實現這個目標。

So I can't necessarily put a time line on our end target. But I can tell you in the near term, we plan on making significant changes. And part of that also will have to do with the mix, and we'll have to do with the amount of growth that comes through the business. And so there's just a lot of factors there that make it difficult to give you that firm answer. But I can say this, we do fundamentally understand the business. When we look at the industry and we look at competition and we look at their gross margins, we know that there's a lot of room to go with this technology.

所以我不一定能為我們的最終目標設定時間表。但我可以告訴你，在短期內，我們計劃做出重大改變。其中一部分也與組合有關，我們將與業務帶來的成長量有關。因此，有很多因素導致很難給你明確的答案。但我可以這麼說，我們確實從根本上了解這項業務。當我們審視這個產業、我們的競爭以及他們的毛利率時，我們知道這項技術有很大的發展空間。

Got it. And then can you give us a sense for what is the core MACOM Industrial and Defense revenue that you're guiding to in the March quarter? And where do you see the trough on the industrial side? I realize it's tough given all the cyclical headwinds. But what is sort of the core MACOM industrial you're guiding to? And where do you see the trough for that business? I think you mentioned something about a back half recovery. So I was just hoping you could give us some color so we can model that business in the right way.

知道了。那麼您能否讓我們了解一下您在三月季度指導的 MACOM 工業和國防核心收入是多少？您認為工業方面的低谷在哪裡？我意識到，考慮到所有周期性逆風，這很困難。但您所引導的 MACOM 核心產業是什麼？您認為該業務的低谷在哪裡？我想你提到了一些關於後半部分恢復的事情。所以我只是希望你能給我們一些建議，以便我們能夠以正確的方式為該業務建模。

Sure. I'll start with that and then Jack can add. So going into Q2, our base business, the Industrial and Defense, we think, will be up about 5% or 6%. We think Telecom will be up about 8% or 9%, and we know that the Data Center will be down about 15%. So that is for the core business.

當然。我將從這個開始，然後傑克可以添加。因此，進入第二季度，我們認為工業和國防這項基礎業務將成長約 5% 或 6%。我們認為電信將成長約 8% 或 9%，而我們知道資料中心將下降約 15%。這就是核心業務。

Now when you compare that to my commentary for the full business, Industrial and Defense going in Q2 will be up 20%; Telecom, 50% and Data Center, the same at that 15% drop. Obviously, the big step-up in the aggregate numbers are due to the Wolfspeed contribution of that $30 million, and it's essentially evenly split between the 2 market segments. Jack, do you want to add to that?

現在，當你將其與我對整個業務的評論進行比較時，第二季的工業和國防業務將成長 20%；電信下降了 50%，資料中心下降了 15%。顯然，總數的大幅成長歸功於 Wolfspeed 貢獻的 3000 萬美元，而且這基本上在兩個細分市場之間平分秋色。傑克，你想補充一下嗎？

I think the only other item to add was with regard to the industrial piece of that I&D business. So I think we've been discussing how the industrial piece has been down for us over the past couple of quarters. That's something that we continue to manage. But I think we've been pleased with the performance on the defense side of the business, which has really supported things within that end market, and we continue to see opportunities on the defense side to ultimately drive improvements in that end market as we go forward.

我認為唯一需要添加的其他項目是關於 I&D 業務的工業部分。因此，我認為我們一直在討論過去幾季工業領域的下滑情況。這是我們繼續管理的事情。但我認為我們對業務防禦方面的表現感到滿意，這確實支持了終端市場的發展，而且我們繼續看到防禦方面的機會，最終推動終端市場的改進向前。

Our next question coming from the line of Harsh Kumar with Piper Sandler.

我們的下一個問題來自 Harsh Kumar 和 Piper Sandler。

Congratulations on closing the deal and looking forward to you guys doing an excellent job on integration. Steve, I did have a question, a follow-up on kind of what Vivek was just asking about. You said your book-to-bill for the business was 0.9 in the December quarter. It sounds like if I take your guidance of the core business being roughly flattish, is it fair for me to assume that the book-to-bill is now very close to 1. And if you're talking about a recovery in your business in the back half and the book-to-bill starts to climb. The reason why I asked that, historically, when the book-to-bill start to climb like that, it signals the bottom. Is it fair for me to assume that your industrial business is bottoming out right about now to plus or minus a quarter?

恭喜您完成交易，並期待您在整合方面做得出色。史蒂夫，我確實有一個問題，是維韋克剛才問的問題的後續問題。您說您的公司在 12 月季度的訂單出貨比為 0.9。聽起來，如果我認為您對核心業務的指導大致持平，那麼我假設訂單出貨比現在非常接近 1 是否公平。如果您正在談論您的業務復甦後半段，訂單出貨量開始攀升。我之所以這麼問，從歷史上看，當訂單出貨量開始像這樣攀升時，就標誌著底部。我假設你們的工業業務現在正在觸底，正負四分之一左右，這公平嗎？

So a couple of things. You're right, the book-to-bill, if we just go back a quarter or 2. So in Q3 of our fiscal '23, it was 0.9 and then we ended fiscal '23 with a book-to-bill of 1.1. And then this past quarter, it was 0.9, okay? So the weakness looking at the bookings was really Telecom and to a certain degree, Data Center related. And the strength was, sort of the segment that was the strongest was I&D, primarily driven by the D, and it was -- we had some very good bookings there.

有幾件事。你是對的，如果我們只是回溯一個季度或兩個季度，那麼訂單出貨比就是。因此，在我們23 財年的第三季度，訂單出貨比為0.9，然後我們在23 財年結束時的訂單出貨比為1.1 。然後上個季度，這個數字是 0.9，好嗎？因此，預訂方面的弱點實際上與電信有關，在某種程度上與資料中心有關。優勢在於，最強的部分是 I&D，主要由 D 驅動，而且我們在那裡獲得了一些非常好的預訂。

So as Jack said, our industrial business still remains weak. I'm not sure we're able to call a bottom per se, but we feel that we can move the base business during Q3 and Q4. I mean we've been at $151 million now for a few quarters, right? So whether we're at the bottom or not, it's just so hard to tell. So I really can't say anything more than that.

正如傑克所說，我們的工業業務仍然疲軟。我不確定我們是否能夠稱之為底部，但我們認為我們可以在第三季和第四季轉移基礎業務。我的意思是，幾個季度以來我們的收入一直保持在 1.51 億美元，對嗎？因此，我們是否處於底部，很難說。所以我真的不能再說什麼了。

Fair enough. And then I did have a follow-up, another question that was asked earlier on your Data Center strength, wherever we look, we see this generative AI driving compute memory and it would imply that connectivity is rising, which is really good for you guys. It seems like you've got the products, you talked about strong demand, but you are talking about slippage, I think you said this quarter in March. And I think you said maybe potentially slipping into the June quarter as well. Is that correct about March and June quarters? And then, b, is that simply you aligning your shipments to customer needs, which would imply that the customers are weak? Or is there something else going on?

很公平。然後我確實有一個後續行動，這是之前提出的關於數據中心實力的另一個問題，無論我們在哪裡，我們都會看到這種生成式人工智能驅動計算內存，這意味著連接性正在上升，這對你們來說確實有好處。看起來你已經有了產品，你談到了強勁的需求，但你正在談論滑點，我想你在三月的這個季度說過。我想你說過可能也會進入六月季度。關於三月和六月季度的說法正確嗎？然後，b，這是否只是您根據客戶需求調整出貨量，這是否意味著客戶很弱？還是還有其他事情發生？

So there's a lot of moving parts in the Data Center, first, in terms of the back half of '24, our fiscal '24. When we look at the Data Center business, we think that there's opportunities for growth. exactly what that will be, we're not able to say today. Second, there's an overhang right now in the Data Center business of the lower data rates, 25 gig, a lot of the traditional NRZ products that we sold into being certainly very, very weak.

因此，資料中心有許多變化的部分，首先，就 24 年下半年而言，也就是我們的 24 財年。當我們審視資料中心業務時，我們認為存在成長機會。具體會是什麼，我們今天還不能說。其次，目前資料中心業務存在較低資料速率（25 GB）的突出問題，我們出售的許多傳統 NRZ 產品肯定非常非常薄弱。

That we're not expecting to really come back in any earnest in the back half. We think the growth in the back half will be at the higher data rates. Third, what you're seeing here really is movement around the major customers and their ordering patterns as they start to ramp up and hit steady states. And so as we've seen many times in the Data Center, there's prime, the pumping and drive ramps and then pump the brakes. And that's -- we're in that little bit of a moat, I think, in Q2, where now a lot of our lead customers are digesting a lot of the inventory before they do another step up.

我們並不期望在下半場真正認真地回歸。我們認為後半段的成長將來自於更高的數據速率。第三，您在這裡看到的實際上是主要客戶及其訂購模式的變化，因為他們開始增加並達到穩定狀態。正如我們在資料中心多次看到的那樣，有啟動、泵送和驅動坡道，然後泵送煞車。我認為，在第二季度，我們正處於一個小小的護城河中，現在我們的許多主要客戶在進一步採取行動之前正在消化大量庫存。

The other thing I'll highlight is these parts do have long lead times, and so the customers know that. So as we start to move into this quarter and beginning of Q3, we'll have very good visibility into the back half of the year. But I will say, and to your point, the trends are very supportive of our core strategy, which is focusing on the higher data rates. And we have a compelling product line. We think we have some of the best drivers in TIAs in the industry. We have been seeing pulled, not only from let's say, the major customers, but we're also seeing pull from the cloud folks themselves, where they're beginning to become believers that linear drive can have a place in their networks.

我要強調的另一件事是這些零件的交貨時間確實很長，因此客戶知道這一點。因此，當我們開始進入本季和第三季初時，我們將對今年下半年有充分的了解。但我想說，就你的觀點而言，這些趨勢非常支持我們的核心策略，即專注於更高的數據速率。我們擁有引人注目的產品線。我們認為我們擁有業內最好的 TIA 驅動程式。我們不僅看到了來自主要客戶的拉動，而且還看到了來自雲端人員本身的拉動，他們開始相信線性驅動器可以在他們的網路中佔有一席之地。

And the last point I'll make about the Data Center, as everybody knows, with the new architectures of these systems, there is an incredible amount of short reach optical or electrical connectivity or cables. So the SAM in this area is growing rapidly. And there's been lots of publications from various folks talking about port counts and whatnot. But there's just tremendous growth that folks are predicting. And so we'll see if that comes to fruition, but we feel like we are in a good spot.

關於資料中心，我要說的最後一點是，眾所周知，在這些系統的新架構中，存在大量的短距離光纖或電氣連接或電纜。所以這個領域的SAM正在快速成長。並且有很多來自不同人士的出版物談論端口數量等等。但人們預測將會出現巨大的成長。所以我們會看看這是否會實現，但我們覺得我們處於一個好的位置。

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

我們的下一個問題來自哈蘭·蘇爾 (Harlan Sur) 與摩根大通 (JPMorgan) 的電話。

Congrats on getting the RF business acquisition closed. Steve, the newly acquired RF business in Telecom, you guys had expected a slight decline in the December quarter, marking sort of 5 quarters of consecutive declines. It looks like telco was actually down more than that in the December quarter, obviously, we know wired and wireless infrastructure trends continue to be weak. But from March, you're actually thinking 8% to 9% sequential growth. So do you guys believe that the business has bottomed and maybe telco sort of bounces along the bottom beyond the March quarter?

恭喜 RF 業務收購完成。 Steve，電信公司新收購的 RF 業務，你們原本預計 12 月季度會出現小幅下滑，這標誌著連續 5 個季度下滑。看起來電信公司實際上比去年第四季的下降幅度更大，顯然，我們知道有線和無線基礎設施趨勢仍然疲軟。但從 3 月開始，您實際上正在考慮 8% 到 9% 的環比增長。那麼，你們是否相信這項業務已經觸底，也許電信公司在三月季度之後會沿著底部反彈？

So possibly. So the telecom market for us has 3 -- well, 3 areas that are positive right now. Number One is metro long haul where we see ramp-ups of 130 gigabaud systems very early, but there's a lot of spending and pull for our products in this market. Second is SATCOM, satellite communications. We are seeing growth and many opportunities to expand our business in this area. So that is absolutely supporting our near-term revenues.

所以有可能。因此，對我們來說，電信市場目前有 3 個領域是正面的。第一是城域長途運輸，我們很早就看到了 130 GB 系統的成長，但這個市場上有大量的支出和對我們產品的吸引力。其次是SATCOM，衛星通訊。我們看到了這一領域的成長和許多擴展業務的機會。因此，這絕對支持我們的近期收入。

We are starting to see some amount of growth in China for small cell deployments and front haul demand, let's say, it's modest, but it's an improvement over where we were a quarter or 2 ago. But to your point, you're right, we've come down significantly from over $60 million to now this past quarter, $27 million. A lot of the growth we had in '22 and '23 was cable infrastructure, that's essentially gone away. We had a lot of revenue with PON, passive optical networks. We are today shipping products into PON at a very muted level, it's not 0, but it's quite low.

我們開始看到中國的小型基地台部署和前傳需求出現一定程度的成長，可以說，成長幅度不大，但比一兩個季度前有所改善。但就你的觀點而言，你是對的，我們已經從上個季度的 6000 萬美元大幅減少到現在的 2700 萬美元。我們在 22 年和 23 年的成長主要來自有線電視基礎設施，但現在這些基礎設施基本上已經消失了。我們透過 PON、被動光網路獲得了大量收入。今天，我們以非常低的水平將產品運送到 PON，它不是 0，但相當低。

So the last point I'll highlight is 5G is still a very important market for MACOM and while a lot of people are quite negative about telecom, we actually are reinvigorated and quite excited about being able to bring the RF power business from Wolfspeed into a whole range of customers that either they were not engaged in or where we want to grow the positions where they were engaged. And so we believe that together, we can gain more market share in the 5G market space together. And so that's part of our core strategy.

因此，我要強調的最後一點是，5G 仍然是MACOM 的一個非常重要的市場，雖然很多人對電信持相當負面的態度，但我們實際上重新煥發了活力，並對能夠將Wolfspeed 的射頻功率業務帶入一個新的市場感到非常興奮。整個範圍的客戶要么他們沒有參與，要么我們希望擴大他們參與的職位。因此，我們相信，只要齊心協力，我們就能在 5G 市場空間中獲得更多的市佔率。這是我們核心策略的一部分。

I appreciate that. And then maybe just a quick update on the linear drive, right? Because it seems like there would be more demand for these types of solutions as the industry moves to 1.60 speeds later this year because the DSP-based 1.16 modules consumes so much power. So maybe give us an update on the traction of linear drive on the current 100 gig per lane, upcoming 200 gig per lane. And is the team actually shipping solutions in high-volume production today?

我很感激。然後也許只是線性驅動器的快速更新，對嗎？因為隨著今年稍後行業轉向 1.60 速度，對此類解決方案的需求似乎會更大，因為基於 DSP 的 1.16 模組消耗大量功率。因此，也許可以為我們介紹一下當前每車道 100 GB 和即將推出的每車道 200 GB 線性驅動牽引力的最新情況。該團隊今天是否真的在大批量生產中交付解決方案？

Right. So a few things. There is a lot of work going on in the industry for interoperability at 100G per lane for linear drive. So that is really the state of the industry. And so you're starting to see various publications. In fact, there was, I think, an industry get together and I think it was in October, where you had some of the major cloud companies presenting data showing bit error rate in functionality of linear drive systems, actually showing system-level data, and the data is compelling.

正確的。所以有幾件事。業界正在進行大量工作來實現線性驅動每通道 100G 的互通性。這就是產業的現狀。所以你開始看到各種出版品。事實上，我認為，有一個行業聚會，我認為是在 10 月份，一些主要的雲端公司展示了顯示線性驅動系統功能誤碼率的數據，實際上顯示了系統級數據，而且數據令人信服。

So now what needs to happen, of course, to support this is more switches being available, not just the Tomahawk 5, but other platforms, whether it's Cisco Silicon One or others. So there needs to be more switches that can handle the linear drive because the ASIC needs to support the linear drive chip that we make. So that is the state of that business. We feel like we're right on the edge of that discussion and our high-performance connectivity team is doing a phenomenal job there.

當然，現在為了支援這一點，需要提供更多可用的交換機，不僅僅是 Tomahawk 5，還有其他平台，無論是 Cisco Silicon One 還是其他平台。所以需要更多的開關來處理線性驅動，因為ASIC需要支援我們製造的線性驅動晶片。這就是該業務的現況。我們覺得我們正處於討論的邊緣，我們的高效能連線團隊正在那裡做得非常出色。

When you talk about 200 gig per lane, we will -- as I mentioned in my script, we'll be demonstrating some products there in that regard. And so we are, of course, also very active. I think there's less activity right now in that area. There are certain constraints. A lot of the first-generation 200 gig per lane will be single-mode fiber using silicon photonics and EMLs and that -- we think before the volumes kick in, it has to switch over to a VCSEL laser. And we don't make VCSEL lasers at 200 gig. I'm not sure that -- it's very early days for that, but there's things that need to come together in the ecosystem to support super high-volume 200 gig, and it's still very early.

當你談到每個通道 200 演出時，我們將——正如我在腳本中提到的那樣，我們將在那裡展示一些這方面的產品。當然，我們也非常積極。我認為該地區目前的活動較少。有一定的限制。許多第一代每通道 200 GB 光纖將是使用矽光子學和 EML 的單模光纖，我們認為在產量開始增加之前，它必須切換到 VCSEL 雷射。我們不生產 200 gig 的 VCSEL 雷射。我不確定——現在還為時過早，但生態系統中需要整合一些東西來支援超大容量的 200 場演出，而且現在還為時過早。

So again, it's something that we're focused on. We think we'll be positioned well when our customers want to ramp up those technologies.

這又是我們關注的焦點。我們認為，當我們的客戶想要提升這些技術時，我們將處於有利地位。

Our next question coming from the line of David Williams with The Benchmark Company.

我們的下一個問題來自 The Benchmark Company 的 David Williams。

And let me add my congratulations on the closing of Wolfspeed there. I guess my first question has just been around that acquisition, has there been anything, any surprises, either positive or negative that you've come across? And maybe just kind of touch on what you've done in terms of integrating that into the business?

讓我對 Wolfspeed 的閉幕表示祝賀。我想我的第一個問題就是圍繞著那次收購，您遇到任何驚喜，無論是積極的還是消極的？也許只是談談您在將其整合到業務方面所做的工作？

Sure. I would say that no, there was really no surprises. We spent from -- well, we spent a fair amount of time in due diligence to get to know the people, the staff, the organization, the infrastructure and had just a great engagement with the Wolfspeed team. So sort of post close, there was no real surprises. As I highlighted in the script, most companies will acquire a company and then integrate after closing, we had set up a planning process to allow us to execute that integration the day after we closed, essentially. And I have to really thank the Wolfspeed team as well as our team for working so well together.

當然。我想說的是，不，確實沒有什麼驚喜。我們花了——嗯，我們花了相當多的時間進行盡職調查，以了解人員、員工、組織、基礎設施，並與 Wolfspeed 團隊進行了良好的接觸。就這樣結束了，沒有什麼真正的驚喜。正如我在腳本中所強調的那樣，大多數公司都會收購一家公司，然後在關閉後進行整合，我們已經建立了一個規劃流程，以便我們能夠在關閉後的第二天執行整合。我必須非常感謝 Wolfspeed 團隊以及我們的團隊合作得如此順利。

I will say that the customers and the industry seems to be very receptive of this change. They now recognize that given MACOM is very focused on RF and microwave that it's a perfect fit. And a lot of the things that were on the drawing board for next-generation processes or products we can now together implement as a priority. So I think the customers will benefit from that. But I would say, generally speaking, no surprises. There's certainly a lot of heavy lifting that we need to do, as Jack and I have talked about.

我想說的是，客戶和產業似乎很容易接受這種變化。他們現在認識到，鑑於 MACOM 非常專注於射頻和微波，因此這是一個完美的選擇。對於下一代流程或產品，我們現在可以優先實施許多在繪圖板上的事情。所以我認為客戶將從中受益。但我想說，一般來說，這並不奇怪。正如傑克和我所說，我們確實需要做很多繁重的工作。

The team, the management, the production workers or application staff are amazing. They have a very strong footprint across Europe with their sales and applications team. They are stronger than we had. So we're really excited about that. Very strong team in China and some great manufacturing capabilities, not only in North Carolina, but also in California where their Morgan Hill facility has essentially a state-of-the-art assembly factory.

團隊、管理層、生產工人或應用人員都很棒。他們的銷售和應用團隊在歐洲擁有非常強大的影響力。他們比我們更強。所以我們對此感到非常興奮。在中國擁有非常強大的團隊和強大的製造能力，不僅在北卡羅來納州，而且在加利福尼亞州，他們的摩根山工廠基本上擁有最先進的組裝工廠。

And then maybe, Jack, you talked about the flexibility in the model on the expense side. Can you kind of maybe talk about what your expectations are as you kind of go through and get this fully ramped and you make the -- you find the synergies that you expected? And just how should we think about the expense side? .

傑克，也許您談到了模型在費用方面的靈活性。您能否談談您的期望是什麼，當您經歷並全面推進並找到您所期望的協同效應時，您的期望是什麼？我們該如何考慮費用方面呢？ 。

Thanks, David, and I'm assuming you're referring to the operating expense side. So as we closed out the December quarter, that was only a partial quarter from an operating expense point of view. So as we look forward, we'll obviously have a full quarter's worth of operating expense with the acquired business. But I think one of the things to look to in terms of how we manage the business, right? We want to make sure we're also leveraging many of the costs that we are currently incurring from a MACOM point of view. So certain of that was already factored into the, we'll call it, the acquisition model as we played this out. So a lot of that work was done upfront indoor or prior to closing.

謝謝，大衛，我假設你指的是營運費用方面。因此，當我們結束 12 月季度時，從營運費用的角度來看，這只是部分季度。因此，展望未來，我們顯然將擁有所收購業務的整個季度的營運費用。但我認為我們要關注的事情之一是我們如何管理業務，對吧？我們希望確保從 MACOM 的角度來看，我們也能利用目前產生的許多成本。因此，當我們進行此操作時，其中某些因素已被納入我們稱之為收購模型的因素中。因此，很多工作都是在室內或關閉之前完成的。

So from an overall expense perspective, we think we've got a pretty good handle in terms of where we're at today. Similar to what we've worked through with MACOM from an operating expense perspective, we want to make sure we're going to continue to refine things and better leverage our overall operating expenses as we go forward. So I think if you look at the guide that we've put out there and some of the other directional information, you can see that we'll probably be making some pretty good progress from where that business was historically from an overall operating expense perspective. But I think we're feeling pretty good in terms of where we're at now and look to obviously build upon that as we go forward.

因此，從整體支出的角度來看，我們認為就目前的情況而言，我們已經掌握得相當好。與我們從營運費用角度與 MACOM 合作的情況類似，我們希望確保在前進的過程中繼續改進並更好地利用我們的整體營運費用。因此，我認為，如果您查看我們發布的指南和其他一些方向性信息，您會發現，從總體運營費用的角度來看，我們可能會從該業務的歷史記錄中取得一些相當好的進展。 。但我認為就我們現在所處的位置而言，我們感覺相當不錯，並且我們希望在此基礎上繼續前進。

And our next question coming from the line of Srini Pajjuri with Raymond James.

我們的下一個問題來自 Srini Pajjuri 和 Raymond James。

My question is on the Data Center. First question, Steve, you talked about some lumpiness in the near term. I'm just trying to understand the mix of your business in terms of lower speed versus higher speed. Obviously, the higher speed the market itself is growing nicely. But at the same time, to what extent the lower speed weakness, I'm trying to understand to what extent this is cyclical versus something structural? And where do you see that lower speed and business bottoming per year?

我的問題是關於資料中心的。第一個問題，史蒂夫，你談到了近期的一些波動。我只是想了解您的業務在低速與高速方面的組合。顯然，市場本身的成長速度越快越好。但同時，速度較低的弱點在多大程度上是週期性的，而不是結構性的？您在哪裡看到每年較低的速度和業務觸底？

So I think it's -- when we talked about the lower speeds, we do think that there will be a couple more years of 100-gig per lane demand for what I would call our traditional 100G SR4 AOCs and some of the 100G DR1, things like that. So we think there's still a good amount of legacy business out there, and will continue to be demand there. But what we definitely are starting to see is as the next-generation switches come out, people want to run at the higher data rates, 400 and 800 gig, some are jumping right to 800. And so what we see today is the vast majority of our revenue is at the 400 or 800 gig PAM4 applications. And these are typically short reach. So you're talking about less than 100 meters, could be less than 500 meters.

所以我認為，當我們談論較低的速度時，我們確實認為對於我所說的傳統 100G SR4 AOC 和一些 100G DR1，每通道 100G 的需求還將持續幾年。像那樣。因此，我們認為仍然存在大量的遺留業務，並且那裡的需求將繼續存在。但我們肯定開始看到的是，隨著下一代交換機的出現，人們希望以更高的數據速率運行，400 和 800 GB，有些甚至直接跳到 800。所以我們今天看到的是絕大多數我們的收入來自400 或800 gig PAM4 應用程式。而且這些通常是短距離的。所以你說的是小於100米，也可能小於500米。

And then the other thing I'll highlight just sort of related to that is some of the trends with metro long haul because we also see a similar thing there. Now we do lump metro long haul into telecom, but we definitely see that the 32 gigabaud products will also in the next year or 2, start to ramp down as people bring up 64 gigabaud, which is roughly -- 400 gig is the majority of that. And they're starting -- some are actually starting at 130 gigabaud.

然後我要強調的另一件事是與此相關的一些趨勢，因為我們在那裡也看到了類似的情況。現在我們確實將城域長途納入電信業務，但我們肯定會看到 32 GB 的產品也將在未來一兩年內開始下降，因為人們會提出 64 GB，這大約是 400 GB 佔大多數。那。他們正在開始——有些實際上從 130 吉博開始。

So you see this data rate migration to the higher speeds. I think it's slow and gradual. I actually think since the run rates of our lower data rate revenue is so low and the growth of the higher data rates is so high, I think the worst is behind us, as it relates to having a step down because of, let's say, a 25 gig platform going end of life.

因此，您會看到資料速率向更高的速度遷移。我認為這是緩慢而漸進的。我實際上認為，由於我們較低數據速率收入的運行率如此之低，而較高數據速率收入的增長如此之高，我認為最糟糕的情況已經過去了，因為這與下降有關，因為，比方說， 25 場演出的平台即將結束生命。

And then my next question is about your I&D business, Steve. I mean, I was on the Investors in Community site, I think we understand how to kind of think about the industrial business fairly well. But defense is more program-based and company specific. So as you kind of take a look out to the next 12 to 18 months, can you talk about what your -- how you're thinking about your defense business growth? Are there any new programs that are kicking in. I mean just from a modeling standpoint, what is the organic growth rate for this business the way you guys think about it?

我的下一個問題是關於您的 I&D 業務，史蒂夫。我的意思是，我在社區投資者網站上，我認為我們相當了解如何思考工業業務。但防禦更多的是基於計劃和公司特定的。因此，當您展望未來 12 到 18 個月時，您能否談談您對國防業務成長的看法？是否有任何新計劃正在啟動。我的意思是，僅從建模的角度來看，你們認為這項業務的有機成長率是多少？

Yes. I would say that if we can achieve high single-digit growth rates on a CAGR basis, that would be great. I think the last 3 or 4 years, it's been about 18%. So we've been making a lot of great moves with capturing programs, being more aggressive cross-selling some of our capabilities into the defense market. Most of our defense business historically has been RF and microwave related at the chip or package level. And part of our strategy has been to slightly go up the value chain and build multifunction assemblies for customers using all of our chips, and that strategy is working quite well.

是的。我想說，如果我們能夠在複合年增長率的基礎上實現高個位數成長率，那就太好了。我認為過去三、四年，這個比例約為 18%。因此，我們在捕獲項目方面採取了許多重大舉措，更加積極地將我們的一些能力交叉銷售到國防市場。歷史上，我們的大部分國防業務都與晶片或封裝等級的射頻和微波相關。我們策略的一部分是稍微提升價值鏈並使用我們所有的晶片為客戶建立多功能組件，並且該策略運作良好。

And then, of course, with Wolfspeed, a significant portion of the Wolfspeed business is for defense and primarily for transmitters and radar systems. So with Wolfspeed and MACOM, we believe we can do higher levels of integration, we can capture more market share and just better service to customers in this segment together. So we're in all sorts of different types of platforms with the core MACOM business with the RF power coming online, our SAM just increases further.

當然，對於 Wolfspeed，Wolfspeed 業務的很大一部分用於國防，主要用於發射機和雷達系統。因此，透過 Wolfspeed 和 MACOM，我們相信我們可以進行更高水準的集成，我們可以佔領更多的市場份額，並為該細分市場的客戶提供更好的服務。因此，我們處於各種不同類型的平台中，核心 MACOM 業務隨著 RF 功率的上線，我們的 SAM 進一步增加。

From a GaN point of view, just to remind everybody, Wolfspeed's technology is ideal up through about 14 or 15 gigahertz up through expand, let's say, they're very high-voltage, high-power processes. So if you're building a radar that wants to knock or a transmitter that wants to knock drones out of the sky, you would want to buy one of Wolfspeed or one of MACOM's products as an example of a new application that is very relevant today.

從 GaN 的角度來看，只是提醒大家，Wolfspeed 的技術非常適合透過擴展達到約 14 或 15 GHz，比方說，它們是非常高電壓、高功率的製程。因此，如果您正在建造想要將無人機擊落的雷達或想要將無人機擊落的發射器，您可能需要購買 Wolfspeed 或 MACOM 的產品之一，作為當今非常相關的新應用程式的範例。

And then, of course, the necessity to upgrade electronic warfare and jamming systems. They all require high-power transmitters and this is right in our wheelhouse. So great technology. We're very active, we'll conservatively say high single-digit growth, but we've been beating that and if things go well, then we hope to stay on that CAGR run rate.

當然，還有升級電子戰和乾擾系統的必要性。它們都需要高功率發射器，而這正是我們的駕駛室。如此偉大的技術。我們非常活躍，保守地說是高個位數成長，但我們一直在超越這一點，如果一切順利，那麼我們希望保持複合年增長率。

And our next question coming from the line of Tore Svanberg with Stifel.

我們的下一個問題來自 Tore Svanberg 和 Stifel。

And let me first offer my sincere condolences on the passing over of Chairman Ocampo. First question, Stephen, it's really related to what you just talked about. So if we think about the Wolf RF business, it sounds like it's going to sort of contribute 50-50 between I&D and Telecom. But as we think about the growth of that business, will that also be very similar? Do you expect sort of the contribution to be similar to both of those segments?

首先我對奧坎波主席的逝世表示誠摯的哀悼。第一個問題，史蒂芬，這確實與你剛才所說的有關。因此，如果我們考慮 Wolf RF 業務，聽起來它將在 I&D 和電信之間貢獻 50-50 的份額。但當我們思考該業務的成長時，情況是否也會非常相似？您預期這兩個細分市場的貢獻是否相似？

So I think they're going to be different. And I think when we look at the Wolfspeed portfolio as it exists today, they have a very strong telecom business, which is down right now because of weak 5G, and we have great potential there to capture more market share together and turn that around. They have a great foundry business, which is a combination of commercial and defense, and we believe we can continue to grow that business. And then they have a product line of FET discrete devices and Mimix.

所以我認為他們會有所不同。我認為，當我們審視當今的 Wolfspeed 產品組合時，他們擁有非常強大的電信業務，但由於 5G 薄弱，該業務目前正在下滑，而我們擁有巨大的潛力，可以共同佔領更多市場份額並扭轉局面。他們擁有出色的鑄造業務，集商業和國防於一體，我們相信我們可以繼續發展這項業務。然後他們有 FET 分立元件和 Mimix 的產品線。

We believe their mimic product line is way too small. We want to throw the full force of our mimic designers at their processes and take higher-value products to the customers. So we would expect, and our strategy will be to grow the mimic portion of their portfolio in terms of assigning resources to develop products to go after customers aggressively. That will be a corporate priority for us. And we think that is one of the best ways to: a, capture market share; b, improve profitability, and c, grow the revenue of what is a product line that today is just too small.

我們認為他們的模仿產品線太小了。我們希望在他們的流程中充分發揮模仿設計師的力量，為客戶提供更高價值的產品。因此，我們預計，我們的策略將是增加他們產品組合中的模仿部分，分配資源來開發產品，以積極吸引客戶。這將是我們公司的首要任務。我們認為這是實現以下目標的最佳方法之一：a、佔領市場份額； b、提高獲利能力；c、增加目前規模太小的產品線的收入。

So when we roll all that up, we'll just have to sort of wait and see. There's a lot of factors here beyond our control regarding some of the run rates of their big programs. And of course, we're still getting to know the programs and understand them. And as the Wolfspeed management team works with our team and we go together to customers and learn about the programs, we'll be able to sort of refine our thinking. But yes, this business has tremendous potential to grow. If you look at the $2 billion SAM for GaN, about half of that, we believe, is defense related. And so we want a big piece of that.

因此，當我們把所有這些都匯總起來時，我們只能拭目以待。關於他們的大型程式的運作率，有很多因素是我們無法控制的。當然，我們仍在了解和理解這些程序。當 Wolfspeed 管理團隊與我們的團隊合作，我們一起去拜訪客戶並了解這些計劃時，我們將能夠完善我們的想法。但是，是的，這項業務具有巨大的成長潛力。如果你看看價值 20 億美元的 GaN SAM，我們相信其中大約一半與國防有關。所以我們想要其中的一大塊。

And as my follow-up, and I know people are asking a lot of questions about the sort of step down in Data Center. But could you give us a little more color on maybe the -- so let's say it's a $200 million business now, how much of that is lower data rate versus higher data rate. And are you starting to see any seasonality in that business? Or is that still way too early?

作為我的後續行動，我知道人們對資料中心的降級提出了很多問題。但是您能否給我們更多的資訊——假設現在這是一項價值 2 億美元的業務，其中有多少是較低的數據速率與較高的數據速率。您是否開始看到該業務存在季節性？還是這樣還太早嗎？

Yes. I would just say one thing about people's concern about our Data Center business. So our Data Center business back in 2019 was about $115 million. And on the trajectory that we're on right now, that business is probably going to be above $175 million to $200 million. I mean that's kind of the range this is going. So we're very happy that every year, we've been able to grow the business.

是的。關於人們對我們資料中心業務的擔憂，我只想說一件事。因此，2019 年我們的資料中心業務約為 1.15 億美元。按照我們目前的發展軌跡，該業務的價值可能會超過 1.75 億至 2 億美元。我的意思是，這就是目前的範圍。因此，我們很高興每年都能實現業務成長。

Now, we also like to say all the time that this is the most volatile part of our business. We see ramps go up and ramps go down, and that is definitely just what you're signing up for. And you're seeing a little bit of that over the last 3 or 4 quarters where we've had a tremendous ramp-up and now we're having a pause. We don't read too much into it. We have -- at the higher data rates, we're gaining exposure across the industry as the LPO technology is adopted, it plays to our favor, and we know that the sheer volume of short-reach connections is increasing. And so these are the -- I think these are the things that we believe are most important. I would not call this business seasonal, I think it's very much related to deployments and the folks that are making the Data Center infrastructure, winning business and rolling out large clusters or infrastructure. It's more program-related than seasonal.

現在，我們也一直想說，這是我們業務中最不穩定的部分。我們看到坡道上升和坡道下降，這絕對是您報名的目的。在過去的三、四個季度裡，你會看到一些這樣的情況，我們經歷了巨大的成長，但現在我們暫停了。我們對此沒有過多的解讀。隨著 LPO 技術的採用，我們在更高的數據速率下獲得了整個行業的曝光度，這對我們有利，而且我們知道短距離連接的絕對數量正在增加。因此，我認為這些是我們認為最重要的事情。我不會將這種業務稱為季節性業務，我認為這與部署以及建立資料中心基礎設施、贏得業務和推出大型叢集或基礎設施的人員密切相關。它更多地與計劃相關，而不是季節性。

And our next question coming from the line of call Karl Ackerman with BNP Paribas.

我們的下一個問題來自法國巴黎銀行的卡爾阿克曼 (Karl Ackerman) 電話。

Two, if I may. First, I suppose, Jack -- well, or Steve, could you address whether you have enough capacity today to support 50 gig per lane or 100-gig per lane and 200 gig per lane for short-reach applications. And whether you are actually seeing end customers begin to co-invest in the supply chain to support continuity of supply?

如果可以的話，兩個。首先，我想，傑克，或者史蒂夫，您能否解決一下您現在是否有足夠的容量來支援每通道 50 GB 或每通道 100 GB 和每通道 200 GB 的短距離應用。您是否真的看到最終客戶開始共同投資供應鏈以支持供應的連續性？

So we -- just to remind everybody, the high-performance analog products that we produce are using third-party foundries, not internal MACOM foundries. So in this case, we're dealing with the global giants that produce high-performance CMOS or by CMOS or silicon germanium. And so we typically don't view our requirements as moving the needle inside of these fabs. We're sort of a small player in what is typically very large fabs, and our volumes are really not material to their overall business. So I would say that we're not too concerned about capacity. What we have to be concerned about is lead time and planning so that -- as I mentioned, this is a volatile business. So when the music stops, we don't want to be holding a lot of parts. So we have to plan very carefully, ramp up steady state programs, diversifying those parts across a lot of customers, and then ramping down.

因此，我們只是提醒大家，我們生產的高效能類比產品是使用第三方代工廠，而不是內部 MACOM 代工廠。因此，在這種情況下，我們正在與生產高性能 CMOS 或採用 CMOS 或矽鍺的全球巨頭打交道。因此，我們通常不會將我們的要求視為在這些晶圓廠內部移動。在通常非常大的晶圓廠中，我們只是一個小參與者，我們的產量對他們的整體業務來說實際上並不重要。所以我想說我們不太在意容量。我們必須關心的是交貨時間和計劃，因此——正如我所提到的，這是一個不穩定的業務。所以當音樂停止時，我們不想拿著很多零件。因此，我們必須非常仔細地規劃，擴大穩態計劃，在許多客戶中實現這些部分的多樣化，然後逐步減少。

And then the way we manage that with customers as we provide them long lead time so that we can buffer and reduce some of that inventory risk. But I would say, generally speaking, we do not have a capacity problem here. And on the back end regarding OSAT or testing, a lot of these products are bare die, flip chip or bumped in some cases packaged. So no issues there from a capacity point of view.

然後我們與客戶進行管理的方式，因為我們為他們提供了較長的交貨時間，以便我們可以緩衝和減少一些庫存風險。但我想說，一般來說，我們這裡不存在容量問題。在 OSAT 或測試的後端，許多產品都是晶片、倒裝晶片或在某些情況下採用凸點封裝。所以從容量的角度來看不存在任何問題。

And then the third thing I'll mention is we have great relationships with our third-party foundries. And when we see high demand, we're on the phone, we're talking to them and making sure that they can clear the road for us if that's necessary. So it's really priority and planning.

我要提到的第三件事是我們與第三方代工廠有著良好的關係。當我們看到高需求時，我們會打電話與他們交談，並確保他們能夠在必要時為我們掃清道路。所以這確實是優先事項和規劃。

Yes. For my follow-up, thank you for providing the core growth of Telecom in March. But how do you see that market this fiscal year? And within Telecom, the Wolf acquisition gives you both GaN as well as LDMOS product, gives you the full suite of antenna components where telco operators can implement really 5GNR and 4G LTE for carrier infrastructure. And so the (inaudible) to that is, will you also prioritize LDMOS? And if so, how are you thinking about that particular end market, the carrier infrastructure market this year as well?

是的。對於我的後續，感謝您提供了三月電信的核心成長。但您如何看待本財年的市場？在電信領域，收購 Wolf 將為您提供 GaN 和 LDMOS 產品，為您提供全套天線組件，電信業者可以在其中為營運商基礎設施實施真正的 5GNR 和 4G LTE。因此（聽不清楚），您還會優先考慮 LDMOS 嗎？如果是這樣，您如何看待今年的特定終端市場，即營運商基礎設施市場？

Thank you. Yes, you're correct to say that LDMOS is part of the portfolio, and we will continue to provide those products to customer. We basically, when we visit customers and we look at requirements, it becomes clear through conversation with what the best process technology is. And so we definitely have those conversations. And if LDMOS is more appropriate, then we'll certainly offer that. We are not wedded to one over the other.

謝謝。是的，您說 LDMOS 是產品組合的一部分是正確的，我們將繼續向客戶提供這些產品。基本上，當我們拜訪客戶並查看需求時，透過與最佳工藝技術的對話就可以清楚地了解什麼是最好的工藝技術。所以我們肯定會進行這些對話。如果 LDMOS 更合適，我們肯定會提供。我們並不是一心一意地結婚。

And the 5G infrastructure, what you're typically seeing is higher frequencies, you're seeing requests for higher efficiency. And typically, GaN has the edge there. So that has been the trend over the past few years in this market. Now with that said, we MACOM, our base MACOM, we still produce MOSFETs and high-power devices in our fab here, silicon MOSFETs. And so we sell these products into avionics and a lot of defense systems, and we've been selling them for decades. So we look at LDMOS as a great technology for avionics and some defense systems, some communication systems where they prefer that technology. And so we'll actually be moving and focusing our sales force to sell LDMOS across all things wireless.

對於 5G 基礎設施，您通常會看到更高的頻率，您會看到更高效率的要求。通常情況下，GaN 在這方面具有優勢。這就是過去幾年這個市場的趨勢。話雖如此，我們 MACOM，我們的基礎 MACOM，我們仍然在我們的工廠生產 MOSFET 和高功率裝置，即矽 MOSFET。因此，我們將這些產品銷售到航空電子設備和許多防禦系統中，而且我們已經銷售它們數十年了。因此，我們將 LDMOS 視為航空電子設備和一些國防系統以及一些他們更喜歡該技術的通訊系統的一項偉大技術。因此，我們實際上將調動並集中我們的銷售團隊來銷售所有無線領域的 LDMOS。

And I'm showing no further questions at this time. I will now turn the call back over to Mr. Daly for any closing remarks.

目前我不會再提出任何問題。我現在將把電話轉回給戴利先生，讓他發表結束語。

Thank you. In closing, I would like to thank our employees, suppliers and customers for making these results possible. As we move into 2024, we're excited to service the RF and microwave markets with our bigger and stronger RF power team. We're excited to be involved with cutting-edge data center applications for next-generation high-speed infrastructure and to service our growing SATCOM market. We will continue to work as a team to meet our customers' needs and to execute our strategy. Thank you very much.

謝謝。最後，我要感謝我們的員工、供應商和客戶使這些成果成為可能。進入 2024 年，我們很高興能夠透過更大更強的射頻功率團隊為射頻和微波市場提供服務。我們很高興能夠參與下一代高速基礎設施的尖端資料中心應用，並為我們不斷成長的衛星通訊市場提供服務。我們將繼續作為一個團隊努力滿足客戶的需求並執行我們的策略。非常感謝。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。