Arista Networks Inc (ANET) 2014 Q4 法說會逐字稿

Welcome to the fourth quarter 2014 Arista Networks financial results earnings conference call. During the all participants will be in a listen-only mode. After the presentation will conduct a question and answer session. Instructions will be provided at that time.

歡迎參加 Arista Networks 2014 年第四季財務業績電話會議。在此期間，所有參與者都將處於僅聽模式。演講結束後將進行問答環節。屆時將提供說明。

(Operator Instructions)

（操作員說明）

As a reminder this conference is being recorded and will be available for replay from the investor relations section at the Arista website following this call.

謹此提醒，本次會議正在錄製中，並可在本次電話會議後透過 Arista 網站的投資者關係部分重播。

I will now turn the call over to Mr. Chuck Elliott, Director of Investor Relations.

我現在將把電話轉給投資者關係總監 Chuck Elliott 先生。

Good afternoon, everyone, and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Networks' President and Chief Executive Officer; Kelyn Brannon, Arista's Chief Financial Officer; and Marc Taxay, Vice President and General Counsel.

大家下午好，感謝您加入我們。參加今天電話會議的有 Arista Networks 總裁兼執行長 Jayshree Ullal； Kelyn Brannon，Arista 財務長；副總裁兼總法律顧問 Marc Taxay。

This afternoon Arista Networks issued a press release announcing the results for its fiscal fourth quarter and year ended December 31, 2014. If you would like to copy of the release you can access it online at the company's website.

今天下午，Arista Networks 發布了一份新聞稿，宣布截至 2014 年 12 月 31 日的第四財季和年度業績。如果您想複製該新聞稿，可以在該公司網站上在線訪問。

During the course of this conference call Arista Networks' management will make forward-looking statements including those relating to our financial outlook for the first quarter of FY15 and industry innovation, which are subject to risks and uncertainties that we discuss in detail on our documents filed with the SEC, specifically in our most recent Form 10-Q and recent prospectus, and which could cause actual results to differ materially from those anticipated by these statements. These forward looking statements apply as of today and you should not rely on for representing our views in the future. We undertake no obligation to update these statements after this call.

在本次電話會議期間，Arista Networks 管理層將做出前瞻性聲明，包括與我們2015 財年第一季的財務前景和行業創新相關的聲明，這些聲明受到我們在提交的文件中詳細討論的風險和不確定性的影響與 SEC 的合作，特別是在我們最新的 10-Q 表格和最近的招股說明書中，這可能會導致實際結果與這些聲明中預期的結果有重大差異。這些前瞻性陳述從今天起適用，您不應依賴我們代表未來的觀點。我們不承擔在本次電話會議後更新這些聲明的義務。

Also please note that certain financial measures we use on this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided reconciliations of these non-GAAP financial measures to GAAP financial measures in our earnings press release.

另請注意，我們在本次電話會議中使用的某些財務指標是在非公認會計原則的基礎上表示的，並已進行調整以排除某些費用。我們在收益新聞稿中提供了這些非公認會計原則財務指標與公認會計原則財務指標的調節表。

With that I will turn the call over to Jayshree.

然後我會將電話轉給 Jayshree。

Thank you, Chuck. Thank you, everyone, for joining us this afternoon. I am pleased to report that we had a solid fourth quarter and an overall impressive year of $584.1 million in revenue with a 61.7% annual growth.

謝謝你，查克。謝謝大家今天下午加入我們。我很高興地向大家報告，我們第四季表現強勁，全年整體營收令人印象深刻，營收達 5.841 億美元，年增率為 61.7%。

Consistent with prior quarters, customer demand and our new products drove results that exceeded consensus estimate. From a geographic perspective our customers in the Americas generated 81% of our sales in Q4. We are investing to improve our global expansion, including recent hires of our EMEA and APJ sales leaders.

與前幾季一致，客戶需求和我們的新產品推動了業績超越共識預期。從地理角度來看，我們在美洲的客戶創造了我們第四季銷售額的 81%。我們正在投資以改善我們的全球擴張，包括最近聘用了歐洲、中東和非洲 (EMEA) 和亞太及日本地區 (APJ) 的銷售領導者。

Q4 revenue grew 51% year-over-year to a record $173.5 million, driven by our flagship US-based 7000 Series Platform. We recorded the largest quarterly revenue ever achieved as an independent switching company.

在我們位於美國的旗艦 7000 系列平台的推動下，第四季營收年增 51%，達到創紀錄的 1.735 億美元。我們創下了作為獨立交換公司有史以來最大的季度收入。

We delivered non-GAAP gross margins of 67.4% resulting in a non-GAAP earnings per share of $0.53 as we grew profitably in our fast-paced and dynamic industry. Our customers were balanced across four major verticals proving our broadened adoption into mainstream enterprises.

隨著我們在快節奏、充滿活力的行業中實現盈利增長，我們的非 GAAP 毛利率為 67.4%，非 GAAP 每股收益為 0.53 美元。我們的客戶在四個主要垂直領域中保持平衡，證明我們已廣泛應用於主流企業。

In terms of customer concentration, Microsoft, our only top 10% customer, reduced from 22% of 2013 revenue to 15% in 2014. This quarter we once again differentiated ourselves with key software delivered in our architecture. We announced our flagship EOS+ with a single common image for virtual and physical instances. The EOS+ platform delivers radical and foundational improvements over legacy approaches with our multi-process shared state model, the SDK toolkit and vEOS, a virtual machine version of our software.

就客戶集中度而言，微軟是我們唯一的前 10% 客戶，其收入佔 2013 年收入的 22% 降至 2014 年的 15%。本季度，我們再次透過架構中交付的關鍵軟體脫穎而出。我們發布了我們的旗艦產品 EOS+，它為虛擬和實體實例提供單一通用映像。 EOS+ 平台透過我們的多進程共享狀態模型、SDK 工具包和 vEOS（我們軟體的虛擬機器版本）對傳統方法進行了根本性和基礎性的改進。

Arista EOS provides at least six types of programmability to take advantage of pre-built and custom EOS applications. Meaningful integration with our technology partners, ranging from A10 Networks, Ansible, Aruba, Cloudera, Nuage, Palo Alto Networks, Puppet Labs, Pure Storage, Red Hat, Splunk, VMTurbo, VMware and Zscaler is an important hallmark of our EOS+ solution. Before the illustrated our EOS+ use cases with endorsements from two of our most strategic customers, Microsoft and Facebook.

Arista EOS 提供至少六種類型的可程式性，以利用預先建置和自訂 EOS 應用程式。與我們的技術合作夥伴（包括A10 Networks、Ansible、Aruba、Cloudera、Nuage、Palo Alto Networks、Puppet Labs、Pure Storage、Red Hat、Splunk、VMTurbo、VMware 和Zscaler）進行有意義的整合是我們EOS+ 解決方案的重要標誌。在說明我們的 EOS+ 用例之前，我們得到了兩個最具戰略意義的客戶 Microsoft 和 Facebook 的認可。

As I reflect on our first experiences as a public company, I'd like to highlight some key milestones we have achieved in our short history. We have now shipped over 3 million cumulative 10, 40 and 100 gigabit Internet ports with a base of more than 3,000 customers. We believe that we have gained market share in this segment throughout the 2014 year and this quarter.

當我回顧我們作為上市公司的第一次經歷時，我想強調我們在短暫的歷史中取得的一些關鍵里程碑。目前，我們已累計發貨超過 300 萬個 10、40 和 100 千兆互聯網端口，客戶群超過 3,000 家。我們相信，我們在 2014 年和本季已經獲得了該領域的市場份額。

We forged a strategic relationship with VMware. Both companies were named as the top two visionaries in the Gartner Magic Quadrant of February 2014. Arista pioneered the 25 gigabit ethernet and 50 gigabit ethernet consortium with Broadcom, Google and Microsoft as initial founding members. We introduced the industry's only 100 gigabit ethernet 1RU leaf big buffer switch, the 7280E, for both content and storage applications. Arista was named Number 15 in Glassdoor's Top 50 Best small- and medium-sized companies to work for. And we have now crossed over 1,000 employees, doubling in the past two years.

我們與 VMware 建立了策略合作關係。兩家公司都被評為 2014 年 2 月 Gartner 魔力像限中最有遠見的兩家公司。Arista 率先推出了 25 Gb 乙太網路和 50 Gb 乙太網路聯盟，Broadcom、Google 和 Microsoft 為初始創始成員。我們推出了業界唯一的 100 Gb 乙太網路 1RU 葉子大緩衝交換器 7280E，適用於內容和儲存應用。 Arista 在 Glassdoor 評選的 50 家最佳中小型公司中排名第 15 位。目前，我們的員工人數已超過 1,000 人，在過去兩年中翻了一番。

Many of you have inquired about the fiscal lawsuit. I would like to now return it over to our General Counsel, Mark Taxay, for a legal update followed by Kelyn Brannon, our CFO, who will review our financial highlights. Marc?

你們中的許多人都詢問了財政訴訟的情況。我現在想將其返回給我們的總法律顧問 Mark Taxay，以獲取法律更新，然後由我們的財務長 Kelyn Brannon 審查我們的財務摘要。馬克？

Thank you, Jayshree. Before I get into the details, I would like to use this time to briefly discuss how we view the litigation. Cisco has filed several complaints against Arista, two in the ITC and two in the Northern District of California, but they can really be broken down into two different disputes.

謝謝你，傑什裡。在詳細介紹之前，我想利用這段時間簡單討論我們如何看待這起訴訟。思科已經對 Arista 提出了幾起投訴，其中兩起是向 ITC 提起的，兩起是在加州北區提起的，但它們實際上可以分為兩起不同的糾紛。

The patent case involves patents covering a number of different software features and functionality. We believe these cases are really about defending our rights to EOS innovations that we've developed from a clean sheet of paper over the last 10 years.

該專利案涉及涵蓋許多不同軟體特性和功能的專利。我們相信這些案件實際上是為了捍衛我們在過去 10 年裡從一張白紙上開發出來的 EOS 創新權利。

The copyright case relates to the command line interface, which is used by customers to configure our switches. We view this as an issue of open standards and reach of copyright protection, which we believe effects the entire industry.

版權案件涉及命令列介面，客戶使用該介面來設定我們的交換器。我們認為這是開放標準和版權保護範圍的問題，我們認為這會影響整個產業。

We have hired an excellent legal team to represent us, Wilson Sonsini, Fish & Richardson, and Keker & Van Nest. And we are very confident in our strategy. With that let me get into the details.

我們聘請了一支優秀的法律團隊來代表我們：Wilson Sonsini、Fish & Richardson 和 Keker & Van Nest。我們對我們的策略非常有信心。接下來讓我詳細介紹一下。

On December 19, 2014 Cisco filed the two ITC complaints against Arista for alleged violations in Section 337 of the Tariff Act based upon the importation of our products into the United States. The ITC instituted two investigations designated as the 944 and 945 investigations. The two investigations involved the same 12 patents that are the subject of the District Court case. They were simply split into two, six-patent cases in the ITC.

2014 年 12 月 19 日，思科向 ITC 提交了兩份針對 Arista 的投訴，指控 Arista 因將我們的產品進口到美國而違反了《關稅法》第 337 條的規定。 ITC 發起了兩項調查，分別為 944 和 945 調查。這兩項調查涉及與地方法院案件相同的 12 項專利。在 ITC 中，它們被簡單地分為兩個、六個專利案件。

The initial determination date for the 944 investigation is scheduled for January 27, 2016, with a target date for completion of May 27, 2016. Based on the current schedule, we expect that the hearing will be sometime in October, 2015.

944調查的初步確定日期定於2016年1月27日，目標完成日期為2016年5月27日。根據目前的時間表，我們預計聽證會將在2015年10月的某個時間舉行。

As for the 945 investigation, the initial determination date is now scheduled for April 26, 2016, with a target date for completion of August 26, 2016. The hearing is currently set to take place in November of this year. In a nutshell we do not expect any ITC decisions in these investigations until mid-2016. Regarding the merits, we'll point you to our responses for the two ITC complaints, which were filed on February 11, 2015 where we deny the claims asserted against us.

至於945調查，初步裁決日期現定於2016年4月26日，目標完成日期為2016年8月26日。聽證會目前定於今年11月舉行。簡而言之，我們預計 ITC 在 2016 年中期之前不會對這些調查做出任何決定。關於案情，我們將向您介紹我們對 2015 年 2 月 11 日提交的兩起 ITC 投訴的答复，我們否認了針對我們的索賠。

In addition to the ITC investigation, Cisco filed two complaints against Arista in the Northern District of California on December 5, 2014. In the first case, Cisco asserted claims of patent infringement with respect to the same 12 patents. Because of that overlap, the case has been stayed pending resolution in the ITC. Consequently, there will be no activity in this case until the ITC cases are completely resolved through appeal. This could be sometime in 2017 depending upon the ITC's schedules. In the second, case Cisco alleges that our use of certain CLI commands infringe very aspects of the copyrighted works and further, that our products infringe two additional Cisco patents.

除了 ITC 的調查之外，思科還於 2014 年 12 月 5 日在加州北區對 Arista 提出了兩起投訴。在第一個案件中，思科就同樣的 12 項專利提出了專利侵權主張。由於存在重疊，該案已被擱置，等待美國國際貿易委員會的解決。因此，在 ITC 案件透過上訴完全解決之前，本案不會有任何活動。這可能是 2017 年的某個時間，具體取決於 ITC 的時間表。在第二個案例中，思科聲稱我們對某些 CLI 命令的使用侵犯了受版權保護的作品的各個方面，而且我們的產品還侵犯了另外兩項思科專利。

We do not yet have a schedule for this case. Our first case management conference is it likely be sometime this Spring, and we should have a better idea at that time what the schedule will be. On the merits, we filed a response on February 13 denying the claims asserted against us.

我們還沒有此案的時間表。我們的第一次案例管理會議可能會在今年春天的某個時候舉行，屆時我們應該對日程安排有更好的了解。就案情而言，我們在 2 月 13 日提交了回應，否認了針對我們的指控。

In summary, this lawsuit is going to be multi-year battle, and we intend to litigate this in the courts, not in the media. We don't plan to blog on every routine procedural matter. If blogging won cases, we'd blog. We intend to win. Ultimately our primary focus is on the continued supply of our award-winning products to our customers.

總而言之，這場訴訟將是一場多年的戰鬥，我們打算在法庭上提起訴訟，而不是在媒體上。我們不打算在部落格中討論每一個例行程序問題。如果部落格贏得了訴訟，我們就會寫部落格。我們打算贏。最終，我們的主要重點是持續向客戶提供我們屢獲殊榮的產品。

I will now turn the call over to Kelyn Brannonm our CFO.

我現在將把電話轉給我們的財務長 Kelyn Brannonm。

Thank you, Marc, and good afternoon, everyone. Before I walk through our financial results and guidance, I'd like to note that except for revenue numbers that are GAAP, our financial numbers are non-GAAP unless otherwise. A reconciliation of selected GAAP to non-GAAP results is provided in our earnings release.

謝謝你，馬克，大家下午好。在介紹我們的財務表現和指導之前，我想指出，除了按 GAAP 計算的收入數據外，我們的財務數據均按非 GAAP 計算，除非另有說明。我們的收益報告中提供了選定的 GAAP 與非 GAAP 績效的調整表。

We reported record revenue of $173.5 million in the fourth quarter, a 12% increase from Q3 2014. Gross margin for Q4 was 67.4%, up from 65.2% in the prior quarter and down slightly from 67.6% a year ago quarter. The sequential increase was primarily caused by a reduction in inventory overhead costs and favorable customer mix. Our gross margin will continue to fluctuate up and down from quarter to quarter due primarily to customer mix, seasonality of our business and product mix. We expect our gross margin to average in the low- to mid-60% range in the long term, but will fluctuate above and below this range on a quarterly basis.

我們報告第四季營收達到創紀錄的1.735 億美元，比2014 年第三季成長12%。第四季毛利率為67.4%，高於上一季的65.2%，略低於去年同期的67.6% 。環比成長主要是由於庫存管理費用的減少和有利的客戶組合所致。我們的毛利率將繼續逐季度上下波動，這主要是由於客戶組合、業務季節性和產品組合的影響。我們預計，從長遠來看，我們的毛利率平均在 60% 的低至中範圍內，但會按季度在該範圍上下波動。

Turning to operating expenses. R&D spending for Q4 was $39.7 million, increasing sequentially from $31.9 million in the prior quarter and an increase from $29.3 million in the year ago quarter. The sequential and year-over-year increases reflect headcount additions and higher bonus expenses, in addition to increased development activity for new products.

轉向營運費用。第四季的研發支出為 3,970 萬美元，較上一季的 3,190 萬美元有所增加，也較去年同期的 2,930 萬美元有所增加。環比和同比增長反映了員工人數的增加和獎金支出的增加，以及新產品開發活動的增加。

Sales and marketing spending for Q4 was $23.1 million, increasing sequentially from $18.6 million in the prior quarter and an increase from $16.3 million in the year ago quarter. The sequential and year-over-year increase reflects additional sales and sales engineer headcount, higher bonuses and commissions attributable to our strong revenue growth and an increase marketing activity to support our customer base.

第四季的銷售和行銷支出為 2,310 萬美元，較上一季的 1,860 萬美元有所增加，也較去年同期的 1,630 萬美元有所增加。環比和同比增長反映了銷售和銷售工程師人數的增加、由於我們強勁的收入增長以及支持客戶群的營銷活動的增加而增加的獎金和佣金。

G&A spending for Q4 was $7.2 million, decreasing sequentially from $9 million in the prior quarter and an increase from $5.7 million in the year ago quarter. In Q3, we reported an additional corporate bonus to G&A that was subsequently allocated in Q4 across other departments, which largely caused the sequential quarter decline.

第四季的一般管理支出為 720 萬美元，比上一季的 900 萬美元有所減少，但比去年同期的 570 萬美元有所增加。在第三季度，我們向 G&A 報告了額外的企業獎金，隨後在第四季度分配給其他部門，這在很大程度上導致了連續季度的下降。

Operating income for the fourth quarter of 2014 was $47.1 million, increasing sequentially from $42 million in the prior quarter and an increase from $26.3 million in the corresponding period of 2013.

2014 年第四季的營業收入為 4,710 萬美元，比上一季的 4,200 萬美元有所成長，也比 2013 年同期的 2,630 萬美元有所增長。

Our effective tax rate for Q4 was 19.1%, triggered by the enactment of 2014 R&D tax credit during Q4 and tax structure reorganization efforts. Net income for Q4 was $37.3 million, or $0.53 per diluted share compared with a net income of $17.5 million on fully diluted earnings of $0.27 per share in Q4 2013. We doubled our net income to $105.5 million or fully diluted earnings of $1.54 per share, compared to net income of $52.6 million or fully diluted earnings of $0.84 per share.

我們第四季的有效稅率為 19.1%，這是由於第四季 2014 年研發稅收抵免的頒布和稅收結構重組工作所引發的。第四季的淨利潤為3,730 萬美元，即每股攤薄收益0.53 美元，而2013 年第四季的淨利潤為1,750 萬美元，完全稀釋每股收益為0.27 美元。我們的淨利潤翻了一番，達到1.055 億美元，即完全稀釋每股收益1.54 美元。相比之下，淨利潤為 5260 萬美元，完全稀釋後每股收益為 0.84 美元。

Turning to the balance sheet, we had cash, cash equivalents and investments of $449.4 million at the end of Q4. Cash flow from operations and free cash flow for 2014 was $114.5 million and $101.4 million, respectively. Capital expenditures in 2014 totaled $13.1 million and were primarily related to purchases of development, testing and manufacturing equipment.

轉向資產負債表，第四季末我們的現金、現金等價物和投資為 4.494 億美元。 2014 年營運現金流和自由現金流分別為 1.145 億美元和 1.014 億美元。 2014 年的資本支出總計 1,310 萬美元，主要與購買開發、測試和製造設備有關。

Accounts receivable was $97 million, an increase from the prior quarter of $84.1 million. DSOs remained steady at 51 in Q4. Current and non-current deferred revenue was $106.5 million, an increase of $28.8 million over the prior quarter and primarily resulted from new service agreements and renewals. Inventory was $80.5 million, up from $62.6 million in the prior quarter yielding turns of nearly 3. The increase primarily resulted from increased volumes to support our revenue growth.

應收帳款為 9,700 萬美元，較上一季的 8,410 萬美元增加。第四季 DSO 保持穩定在 51。當期和非當期遞延收入為 1.065 億美元，比上一季增加 2,880 萬美元，主要來自新服務協議和續約。庫存為 8,050 萬美元，高於上一季的 6,260 萬美元，收益率接近 3 倍。這一增長主要是由於銷量增加以支持我們的收入成長。

Let me now move to our guidance. I'd like to emphasize that although our rapid revenue growth has minimized the impact of seasonal factors, Q1 has historically been a seasonally weak quarter followed by stronger sequential revenue growth in Q2 through Q4. We expect this trend to continue in 2015. And as a result, for the first quarter of 2015 we expect our revenue to remain flat from Q4 and have set a target of $164 million to $172 million, which represents 40% to 47% growth year-over-year.

現在讓我談談我們的指導。我想強調的是，儘管我們的收入快速增長已將季節性因素的影響降至最低，但從歷史上看，第一季一直是季節性疲軟的季度，隨後第二季度到第四季度的收入環比成長更為強勁。我們預計這一趨勢將在2015 年持續下去。因此，對於2015 年第一季度，我們預計我們的營收將與第四季度持平，並設定了1.64 億至1.72 億美元的目標，即40% 至47% 的成長率-年比。

Gross margin is anticipated to be in the 63% to 66% range based on forecasted customer mix and seasonality, and we anticipate operating margins in the range of 22% to 25%. Starting in Q1 FY15 and subsequent quarters, the above guidance excludes legal costs related to the OptumSoft and Cisco litigation, which has been removed from our non-GAAP results. We anticipate that these costs will range between $5 million to $7 million for Q1 FY15.

根據預測的客戶組合和季節性，毛利率預計在 63% 至 66% 範圍內，我們預計營業利潤率將在 22% 至 25% 範圍內。從 2015 財年第一季及隨後幾季開始，上述指引不包括與 OptumSoft 和思科訴訟相關的法律費用，該費用已從我們的非 GAAP 業績中刪除。我們預計 2015 財年第一季這些成本將在 500 萬至 700 萬美元之間。

Non-GAAP effective tax rate is forecasted to be in the 30% range to 32% range. We estimate DSO will be in the low 50s and inventory turns remaining around three per year.

非 GAAP 有效稅率預計在 30% 至 32% 範圍內。我們估計 DSO 將在 50 左右，庫存週轉率保持在每年 3 左右。

And as a reminder, Arista will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. And with that I'll turn the call back to Jayshree.

提醒一下，除非透過明確的公開揭露，否則 Arista 不會對其本季的財務指引發表評論。然後我會將電話轉回 Jayshree。

Thank you, Kelyn, and thank you, Marc. In summary, we've had a momentous 2014 with many memorable metrics. We have done this as a team with dedicated focus. Focus on pioneering innovation, focus on customer dedication, and focus on Arista's results with the right values.

謝謝你，凱林，謝謝你，馬克。總而言之，我們度過了重要的 2014 年，有許多令人難忘的指標。我們作為一個專注的團隊完成了這項工作。專注於開拓創新，專注於客戶奉獻，並以正確的價值觀專注於 Arista 的成果。

It's a culture of doing the genuinely right thing that we call in Arista, The Arista Way. It means we thrive on fair competition, and we welcome that. Our customers, though, do not come to us for old-school legacy systems or copied codes; they seek open innovation. They are embracing Arista for our disruptive programming software model to transition to their new cloud initiatives.

這是一種做真正正確的事情的文化，我們在 Arista 中稱之為「Arista 方式」。這意味著我們在公平競爭中蓬勃發展，我們對此表示歡迎。然而，我們的客戶來找我們並不是為了老式的遺留系統或複製的程式碼；他們尋求開放式創新。他們正在採用 Arista 作為我們的顛覆性程式設計軟體模型，以過渡到他們的新雲端計劃。

So let me be clear, the lawsuit has not impacted our business. In fact, I am energized by our unwavering customer acceptance and the momentum ahead.

所以我要澄清的是，訴訟並未影響我們的業務。事實上，我們堅定不移的客戶認可度和未來的發展動能讓我倍感振奮。

(Operator Instructions)

（操作員說明）

Mark Sue, RBC Capital Markets.

馬克‧蘇（Mark Sue），加拿大皇家銀行資本市場部。

Thank you and good afternoon. Your growth rate seems to suggest, meaning significant market share gain. Do you feel now that you're seeing a narrowing of the field when it comes to high-end switching 1040/100? Who are you gaining marketing share from?

謝謝你，下午好。您的成長率似乎表明，這意味著市場佔有率的顯著成長。現在您覺得高階交換 1040/100 領域的範圍正在縮小？您從誰那裡獲得行銷份額？

And it doesn't seem the lawsuit has any impact to your bookings' trends. Maybe if you could give us some qualitative trends of why you are still continuing to gain share. And also, lastly, just on white box switches how the needle might be swinging the other way from the initial hot days? Thank you.

訴訟似乎對您的預訂趨勢沒有任何影響。也許您能給我們一些定性趨勢，說明為什麼您仍在繼續獲得份額。最後，僅在白盒開關上，針頭可能會如何從最初的炎熱天氣向相反方向擺動？謝謝。

Thank you, Mark. I think when you have such a large total available market opportunity, as you know the market for 1040 and 100 gigabit is $6.9 billion in 2014, according to Dell'Oro Crehan Research, going to $13 billion in five years. It is very possible for Arista to gain market share with share execution. And that's what you're seeing here.

謝謝你，馬克。我認為，當你擁有如此大的可用市場機會時，正如你所知，根據 Dell'Oro Crehan Research 的數據，2014 年 1040 和 100 GB 的市場價值為 69 億美元，五年內將達到 130 億美元。 Arista 很有可能透過股票執行來獲得市場份額。這就是你在這裡看到的。

With a disruptive product, with the software that no one else has. And the customers really wanting to move to SCN and cloud, we are gaining share on our own merit is the number one. We don't have to take share from anyone, we're gaining on our own merit. Is the strong message I may be with.

擁有顛覆性的產品，擁有其他人沒有的軟體。而真正想要遷移到SCN和雲端的客戶，我們憑藉自己的優勢獲得的份額是第一名。我們不需要從任何人那裡獲取份額，我們可以憑藉自己的能力獲得收益。這是我可能感受到的強烈訊息。

We do believe large, dominant players are likely to lose share, and are losing share. But independent of that, Arista's execution and market share gains are based on Arista.

我們確實相信，占主導地位的大型企業可能會失去市場份額，而且正在失去市場份額。但除此之外，Arista 的執行力和市場佔有率的成長都是基於 Arista。

In terms of white box, I think it's important to understand that whether it's white box, blue box, SDN, merchant silicon, whatever you want to call it, this market is still very small. It's a $259 million market estimated by Dell'Oro in 2014. So it's another form factor.

就白盒而言，我認為重要的是要了解，無論是白盒、藍盒、SDN、商業矽，無論你想怎麼稱呼它，這個市場仍然很小。 Dell'Oro 在 2014 年估計該市場價值為 2.59 億美元。因此，這是另一種形式因素。

Once the market gets big enough, Arista will consider participating in it when we have customers who want it. Arista is not participating in the blade switch market, which is a form factor we're not in. Arista's not participating in the virtual switch market, which again is form factor we're not in.

一旦市場夠大，當我們有客戶想要的時候，Arista就會考慮參與其中。 Arista 不參與刀片交換器市場，這是我們不參與的外形因素。Arista 不參與虛擬交換器市場，這也是我們不參與的外形因素。

But when we see a meaningful market, and we see our customers wanting for us to be in that, then absolutely. But to date that $250 million is largely a captive market in engineering driven companies.

但當我們看到一個有意義的市場，而我們看到我們的客戶希望我們進入這個市場時，那就絕對如此。但迄今為止，這 2.5 億美元主要是工程驅動型公司的專屬市場。

That's helpful. And Jayshree, lastly, now that your past your 10-year anniversary, do you feel that customers are considering the networking requirements as more of a two player environment? Is it forming in that way from your customers to you?

這很有幫助。最後，Jayshree，您已經度過了 10 週年紀念日，您是否認為客戶更多地將網路需求視為兩人環境？從你的客戶到你，它是這樣形成的嗎？

Yes, I think absolutely. We've seen that real change in 2014, where much like a service providers where Juniper became the alternative service provider, Arista is clearly being viewed as the alternative innovator in data center and cloud.

是的，我認為絕對是。我們在 2014 年看到了真正的變化，就像瞻博網路成為替代服務供應商的服務供應商一樣，Arista 顯然被視為資料中心和雲端領域的替代創新者。

Good luck.

祝你好運。

Thank you.

謝謝。

Simona Jankowski, Goldman Sachs.

西蒙娜·揚科斯基，高盛。

Thanks a lot. Hi, Jayshree. Just a couple of questions for you.

多謝。嗨，傑什裡。只是想問你幾個問題。

First one is which of your verticals drove the strength in the quarter and then looking out into your guidance? And then, secondly, you said that you're not seeing any impact on the business from the Cisco lawsuit. Can you just expand on that?

第一個是您的哪些垂直領域推動了本季的發展，然後展望您的指導？其次，您說您沒有看到思科訴訟對業務產生任何影響。能擴展一下嗎？

Is it that customers are not bringing up that as a potential risk? Or is it that they are but you're successfully navigating around that and able to overcome their concerns?

客戶是否沒有將其視為潛在風險？或者是他們確實如此，但你已經成功地解決了這個問題並能夠克服他們的擔憂？

Thanks, Simona. The first question.

謝謝，西蒙娜。第一個問題。

We saw very good balance across our four verticals, which as you know, are high-tech enterprise, financials, service providers and Tier 2 providers and the cloud Titans. And in fact, I would specially call your attention to the fact that we feel good that we're entering the mainstream enterprise adoption. But all four verticals did well for us in Q4.

我們在四個垂直領域看到了非常好的平衡，如您所知，這四個垂直領域是高科技企業、金融、服務提供者、二級提供者和雲端巨頭。事實上，我想特別提請您注意這樣一個事實：我們對正在進入主流企業採用感到滿意。但所有四個垂直領域在第四季度都表現良好。

In terms of the lawsuit, I've literally have customers comment to me that they understand that this is because of our success. Literally quotes from different folks like if they can't innovate, they litigate. So no question that they want us to continue to innovate and indemnify their contract. But frankly the investors are more worried about it than our customers.

就訴訟而言，確實有客戶向我評論說，他們明白這是因為我們的成功。從字面上引用不同的人的話，例如如果他們不能創新，他們就會提起訴訟。因此，毫無疑問，他們希望我們繼續創新並賠償他們的合約。但坦白說，投資人比我們的客戶更擔心這一點。

Thank you.

謝謝。

Tai Liani, Bank of America.

泰利亞尼，美國銀行。

Hopefully you can hear me well. I want to talk about competition.

希望你能好好聽我說。我想談談競爭。

Juniper launched a software hardware desegregation strategy with products. And we see standalone products from Dell that are separating, again, the hardware from software and the software companies in the space. And then Cisco is very aggressive with pricing.

瞻博網路透過產品推出了軟體硬體取消隔離策略。我們看到戴爾的獨立產品再次將硬體與軟體以及該領域的軟體公司分開。而且思科的定價非常激進。

So how do you see the market shaping up? First because of Cisco's aggressive pricing, how do you deal with it? And, second, the software hardware desegregation and the fact that you're still integrated software hardware? Thanks.

那麼您如何看待市場的發展？首先是因為思科激進的定價，你是如何應對的？其次，軟體硬體取消隔離以及您仍然整合軟體硬體這一事實？謝謝。

Hi, Tai, both very good questions. In terms of pricing, we've seen a consistent aggression from our competition on prices. And, generally, there are two or three aspects to our price.

嗨，泰，兩個問題都很好。在定價方面，我們看到了價格競爭的持續侵略性。一般來說，我們的價格有兩三個面向。

First of all there's the CapEx price, were sometimes our competitors will often bundle it and give it for zero, right? So it's hard to compete against zero. But I think customers have recognized that that total price is really the operation cost and the total cost of ownership, what the OpEx price is. And over their Arista does particularly well.

首先是資本支出價格，有時我們的競爭對手經常將其捆綁並以零價格提供，對嗎？所以很難和零競爭。但我認為客戶已經認識到，總價格實際上是營運成本和總擁有成本，即營運支出價格。他們的 Arista 做得特別好。

So even if CapEx is about the same or we're lower or we're higher, people are valuing the programmability and auto provisioning and tuning in a significant way, that we're not manual and it doesn't require large amounts of stuff, and that we can provide that cloud-like experience that they're looking for in all their applications and storage as well, is really playing. And Arista EOS is a key hallmark to differentiate us from a price point of view.

因此，即使資本支出大致相同，或者我們較低或較高，人們也會非常重視可編程性以及自動配置和調整，我們不是手動的，也不需要大量的東西，並且我們可以提供他們在所有應用程式和儲存中尋求的類似雲端的體驗，這確實很有趣。 Arista EOS 是我們從價格角度脫穎而出的關鍵指標。

In terms of bundling of software and hardware, as I said before, Arista, this is a well-known secret actually, started out as a software company and the majority of resources is still software. Our R&D organization slants, over 90% in software. So when you look at our EOS+ announcement, it is all about virtual images of software, it's about software development toolkits, it's about customizing and aligning that capability, so we're not afraid to jointly work with customers in offering compatibility to our software.

在軟硬體捆綁方面，我之前說過，Arista，這其實是一個眾所周知的秘密，是一家軟體公司起家的，大部分資源還是軟體。我們的研發機構偏向軟體，90%以上。因此，當您查看我們的 EOS+ 公告時，您會發現它全都與軟體虛擬映像、軟體開發工具包、客製化和調整該功能有關，因此我們不害怕與客戶共同合作，為我們的軟體提供相容性。

If they were to build their hardware of the want us to run on a white box, we're open to that as well. We've always said we are. We are waiting to see that market develop and as more customers want that, we will absolutely offer yet another form factor and business model. We view that as another member of our portfolio, so not a big deal to us.

如果他們要建立希望我們在白盒上運行的硬件，我們也對此持開放態度。我們一直說我們是。我們正在等待市場的發展，隨著更多客戶的需求，我們絕對會提供另一種外形尺寸和商業模式。我們認為，作為我們投資組合的另一個成員，所以對我們來說沒什麼大不了的。

Got it. And what about the margin and expense outlook?

知道了。利潤率和費用前景又如何呢？

We see more competition now than two years ago. And you mentioned on the call, and we know if you don't do blade, you're not into virtual switches, But certain parts of orchestration maybe also you don't (inaudible).

與兩年前相比，我們現在看到了更多的競爭。你在電話中提到，我們知道如果你不做刀片，你就不會進入虛擬交換機，但編排的某些部分也許你也不會（聽不清楚）。

Do you feel the need to increase expenses and go after these markets? Or do you think that where you are is where you are going to stay for the next few years?

您是否覺得有必要增加開支並進入這些市場？或者你認為你現在所在的地方就是你未來幾年要待的地方嗎？

With a $584 million revenue out of the $7 billion market going to $10 million, $11 million; I think focus is important. So we're definitely not doing blade switches. We believe that footprint belongs server vendors.

70 億美元市場中的 5.84 億美元收入將達到 1,000 萬美元、1,100 萬美元；我認為專注很重要。所以我們絕對不會做刀片開關。我們相信，足跡屬於伺服器供應商。

We are definitely not doing virtual switches, we work with the open staff community, we work with VMWare, we work with NSX, we work with Nuage. So we don't see that we should go into markets and technologies that others have strength in, we want to complement that. And we have plenty of room to grow to become a $1 billion or $2 billion Company with that large market.

我們絕對不是在做虛擬交換機，我們與開放員工社群合作，我們與 VMWare 合作，我們與 NSX 合作，我們與 Nuage 合作。因此，我們認為我們不應該進入其他人擁有優勢的市場和技術，我們希望對其進行補充。我們有足夠的發展空間，成為一家擁有如此大市場、價值 10 億美元或 20 億美元的公司。

At the same time, we do not preclude adjacencies. If it makes sense with our software and technology to expand into markets that are more natural, where we can be differentiated, we will absolutely consider that in the next one to three years.

同時，我們也不排除鄰接關係。如果我們的軟體和技術能夠擴展到更自然的市場，讓我們能夠脫穎而出，那麼我們絕對會在未來一到三年內考慮這一點。

Thank you.

謝謝。

Erik Suppiger, JMP.

埃里克·蘇皮格，JMP。

Yes, two questions. First off, on the gross margin guidance, are you feeling better about the gross margins? Is that an uptick from where you've been in the past in terms of the guidance for 63% to 67%?

是的，有兩個問題。首先，關於毛利率指導，您對毛利率感覺更好嗎？與過去 63% 至 67% 的指導相比，這是否有所上升？

Erik, I'm glad you commented on this and you noticed it. We are feeling good about modeling our gross margins and that we understand it better. However, we do believe that there's a reason why we give a wider range this time than normal. That we do believe that our gross margin is quite affected by mix when we have large volume cloud Titans and they're not as balanced we can swing the gross margin down since they drive on that volume.

艾瑞克，我很高興你對此發表評論並且注意到它。我們對毛利率建模感覺良好，我們對它有了更好的理解。然而，我們確實相信，這次我們給出的範圍比平常更大是有原因的。我們確實相信，當我們擁有大量雲端泰坦時，我們的毛利率會受到混合的影響，並且它們不那麼平衡，我們可以降低毛利率，因為它們推動了該數量。

When we have smaller volumes and more enterprise, or customers who aren't buying as much quantity, then our gross margin increases. So blending the two and predicting that mix continues to be learning experience for us. Kelyn, do you want to comment on that

當我們的銷售量較小而企業數量較多或購買數量較少的客戶較多時，我們的毛利率就會增加。因此，將兩者混合併預測這種混合對我們來說仍然是學習經驗。凱林，你想對此發表評論嗎

No. I would agree with Jayshree, it is still a learning experience and so we feel very comfortable with the guidance of 63% to 66% for Q1.

不會。我同意 Jayshree 的觀點，這仍然是一次學習經歷，因此我們對第一季 63% 至 66% 的指導感到非常滿意。

Long-term we've always said that to gain market share and gain footprints, we would not be afraid with the 60% to 65% gross margin range.

長期來看，我們一直說，要獲得市佔率、擴大足跡，我們不會害怕60%到65%的毛利率範圍。

So can we assume the enterprise growth is giving you some of that increased confidence in terms of the opportunity for the higher-end of our guidance range?

那麼，我們是否可以假設企業的成長讓您對我們指導範圍高端的機會增加了一些信心？

I think that's one assumption, but let me add another assumption to that, you can also make the assumption that some of our cloud Titan purchases moved out of Q4 to Q1.

我認為這是一個假設，但讓我添加另一個假設，您也可以假設我們的一些雲端泰坦採購從第四季度轉移到第一季。

Okay. Secondly, are there any new software apps or tools that your customers are using in terms of some of the programmability in EOS? Is there any new dynamics in terms of customer adoption that's been fueling some of the adoption for Arista?

好的。其次，您的客戶在 EOS 的某些可程式性方面是否正在使用任何新的軟體應用程式或工具？在客戶採用方面是否有任何新的動態推動了 Arista 的部分採用？

That's an excellent question, Erik, and I'll try and give a short answer because we don't have all day. The combination of more programmability is making people realize that more than meeting single-function controllers, what they really need is network management done right.

這是一個很好的問題，埃里克，我會嘗試給出一個簡短的答案，因為我們沒有一整天的時間。更多可編程性的結合使人們意識到，他們真正需要的不僅僅是滿足單一功能的控制器，而是正確的網路管理。

So some of our partners like Splunk, VMWare, ExtraHop, software companies that can work very, Palo Alto Networks, that can work -- Ansible, Chef, Puppet, these are all examples of bringing dev ops and net ops together. And that is becoming more and more meaningful and more and more important. So suddenly Arista doesn't feel the need to be that management tool, but we very much are the underpinning to provide the manageability for that tool.

因此，我們的一些合作夥伴，例如Splunk、VMWare、ExtraHop、可以很好地工作的軟體公司、Palo Alto Networks，可以工作的Ansible、Chef、Puppet，這些都是將開發操作和網路操作結合在一起的範例。這變得越來越有意義、越來越重要。因此，Arista 突然覺得不需要成為該管理工具，但我們非常是為該工具提供可管理性的基礎。

Is that adoption across any particular vertical?

這種採用是否跨越任何特定的垂直領域？

Not really.

並不真地。

Very good. Thank you.

非常好。謝謝。

Subu Subrahmanyan, The Juda Group.

Subu Subrahmanyan，猶大集團。

Thank you. I have two questions.

謝謝。我有兩個問題。

First on the four verticals, you mentioned very well balanced growth in the quarter. You think about 2015, I'm curious to see if you could potentially run quarter growth and share gain opportunities in those verticals.

首先，在四個垂直領域，您提到本季的成長非常平衡。想想 2015 年，我很好奇你們是否有可能實現季度成長並分享這些垂直領域的收益機會。

And then also, follow up question on the gross margin. Kelyn, if you can just talk about what were the swing factors that drove this quarter to be higher? Just share some, maybe there's some cloud mix or business that got push out to next quarter. So do expect that to be a predictable swing factor on the lower side for next quarter for gross margin?

然後，跟進毛利率問題。 Kelyn，您能否談談推動本季走高的波動因素是什麼？只是分享一些，也許有一些雲端組合或業務被推遲到下個季度。那麼，您是否認為這將成為下一季毛利率較低的可預測波動因素？

I'll just quickly take the gross margin question. You know, absolutely if you think about the higher gross margin is two. It was customer mix this particular quarter, in Q4.

我將快速回答毛利率問題。你知道，如果你考慮一下更高的毛利率的話，絕對是兩倍。這是第四季度這個特定季度的客戶組合。

Additionally, Q3 we had some additional overhead costs that got absorbed but didn't get replicated in Q4, which benefited the gross margin. But primarily it's around customer mix, and as we look forward into Q1 with the guidance of 63% to 66%, it's that play around our volume customers and how they come in in remaining of quarters we feel good about that.

此外，第三季我們有一些額外的管理費用被吸收，但沒有在第四季度複製，這有利於毛利率。但主要是圍繞客戶組合，當我們以 63% 至 66% 的指導展望第一季時，我們對我們的批量客戶以及他們在剩餘季度中的表現感到滿意。

And to answer your question on was there verticals that grow faster, clearly our largest vertical base is the cloud Titans. So that doesn't tend to increase percentage as fast, but all the other three verticals grew very nicely for us in Q4. Faster.

為了回答你的問題，是否有垂直領域成長得更快，顯然我們最大的垂直基礎是雲泰坦。因此，百分比的成長速度不會那麼快，但其他三個垂直領域在第四季度對我們來說成長得非常好。快點。

When you look at 2015 are there areas particularly among those verticals where you think the share gain opportunities are larger than others?

展望 2015 年，您認為在哪些垂直行業中，是否有一些領域的份額成長機會比其他領域更大？

I think one of the things you'll see us do is just put a deeper focus in all those four verticals, we're not favoring one over the other, but they much similarity in each other. There are early adopters, they appreciate technology, they don't fall for BS marketing. So all of those make them the natural ones.

我認為你會看到我們做的一件事就是更深入地關注所有這四個垂直領域，我們並不偏愛其中一個，但它們彼此之間有很多相似之處。有早期採用者，他們欣賞技術，他們不會陷入廢話行銷。所以所有這些使它們成為自然的。

Got it. Thank you.

知道了。謝謝。

Paul Silverstein, Cowen and Company.

保羅·西爾弗斯坦，考恩公司。

This is Fahad in for Paul. Could you please comment a little bit on the cloud Titan vertical where were the trends? You mentioned that it was slightly bigger. Can you provide some color?

這是保羅的法赫德。您能否評論一下雲泰坦垂直領域的趨勢？你提到它稍微大一點。你能提供一些顏色嗎？

I didn't mention it was bigger. It was very balanced, it was strong. But I did mention that our overall customer concentration of Microsoft for the year went down from 22 to 15, which we view Microsoft as an important partner, but we also view as a positive.

我沒有提到它更大。它非常平衡，很強大。但我確實提到，今年我們對微軟的整體客戶集中度從 22 個下降到了 15 個，我們將微軟視為重要的合作夥伴，但我們也認為這是一個正面的因素。

Our cloud Titans continue to be our most strategic partners. We are in six out of seven of them. And examples of Facebook and Microsoft endorsing our EOS+ announcement is a very clear example of that. So we're very bullish about that segment, and we continue to be so for 2015.

我們的雲端巨頭仍然是我們最具戰略意義的合作夥伴。我們是其中七分之六。 Facebook 和微軟支持我們的 EOS+ 公告就是一個非常明顯的例子。因此，我們非常看好該細分市場，並且在 2015 年仍將如此。

Just one follow-up on more architectural question that have come up recently. A lot of the competitors of yours are talking about integrating security down to their silicon level and really addressing the total cost of ownership. Can you address how is that from a competitive perspective?

這只是最近出現的更多架構問題的一個後續。您的許多競爭對手都在談論將安全性整合到其晶片級別，並真正解決總擁有成本問題。您能從競爭的角度談談這是什麼情況嗎？

We see security as too much of a significant market for Arista to address by itself. So we will be working closely with partners, whether it's V document litigation or encryption or firewall. Palo Alto Networks comes to mind as one of our close partners, as well as others. So we will do this in conjunction with key technology partners not by ourselves.

我們認為安全性對 Arista 來說是一個無法單獨解決的重要市場。所以我們會和合作夥伴緊密合作，無論是V文檔訴訟還是加密或防火牆。 Palo Alto Networks 是我們以及其他公司的密切合作夥伴之一。因此，我們將與關鍵技術合作夥伴一起完成這項工作，而不是我們自己完成。

Thank you.

謝謝。

James Faucette, Morgan Stanley.

詹姆斯‧福賽特，摩根士丹利。

Thank you very much. A couple of quick questions for me.

非常感謝。有幾個問題想問我。

First, just clarification on the guidance and the exclusion of the legal expenses. Just wanted to understand if you're anticipating legal expenses reaching that $5 million to $7 million per quarter in the first quarter already, or if that's something you're taking into account further into the future?

首先，只是澄清法律費用的指導和排除。只是想了解您是否預計第一季的法律費用已達到每季 500 萬至 700 萬美元，或者您是否會在未來進一步考慮這一點？

And then my second question was I guess looking at your customer base and showing the good growth, how should we think about the diversification the customer base? What was your concentration in the fourth quarter and how much diversification or increased diversification would you expect to see during 2015? Thanks.

然後我的第二個問題是，我想看看您的客戶群並顯示出良好的成長，我們應該如何考慮客戶群的多元化？您在第四季的重點是什麼？您預計 2015 年將實現多少多元化或增加多元化？謝謝。

As far as looking at the legal expense, we decided that starting off in Q1 of 2015, to be relatively transparent, go ahead and pull it out of the pro formas but disclose what it is. As Mark to you through the ITC case and then what's going on in the northern quarter California and the cases and the timeline of those, you can imagine that the expense going to be loaded relatively throughout that period. And it really depends. So what I'm going to do is that on each quarter, as we do the earnings call, I'll give you the range of what the legal expenses could be for the next quarter.

至於法律費用，我們決定從 2015 年第一季開始，為了相對透明，繼續將其從準備中撤出，但披露具體內容。馬克向您介紹了 ITC 案件，以及加州北部地區發生的情況以及這些案件和這些案件的時間表，您可以想像，整個時期的費用將相對增加。這確實取決於。所以我要做的是，在每個季度，當我們召開財報電話會議時，我會給你下一個季度的法律費用範圍。

And to answer customer question, as I said, we were very balanced in Q4, throughout 2015 we expect good balance. So the low of any contribution of a vertical you can think of is 15% and the high as 25% to 30%.

為了回答客戶的問題，正如我所說，我們在第四季度非常平衡，我們預計整個 2015 年將保持良好的平衡。因此，您能想到的任何垂直領域的貢獻最低為 15%，最高為 25% 到 30%。

Thanks.

謝謝。

Brian Modoff, Deutsche Bank.

布萊恩‧莫多夫，德意志銀行。

Hi. A few questions for you. One, in terms of the margins, did the mix shift of 40 gigabyte help your margins, as well? And then, how do see Tomahawk helping your margins later on this year? Let's start with that.

你好。有幾個問題想問你。第一，就利潤率而言，40 GB 的混合轉移是否也有助於提高您的利潤率？那麼，Tomahawk 將如何幫助您在今年稍後提高利潤？讓我們從那開始。

Okay. To answer that question, we saw both 40 and 100 gigabyte adoption to really come in and complement our 10 gigabyte. So I wouldn't call out 40 gigabyte only as a sole contributor to our margins, specifically. But it's clear that 10 gigabyte, especially 10GBase-T, resembles more like 1 gigabyte. Where as the high-performance sub-links like 10 gigabyte, 40 gigabyte or 100 gigabyte generally are healthier.

好的。為了回答這個問題，我們看到 40 GB 和 100 GB 的採用真正進入並補充了我們的 10 GB。因此，我不會將 40 GB 僅僅作為我們利潤的唯一貢獻者。但很明顯，10 GB，尤其是 10GBase-T，更像是 1 GB。而像 10 GB、40 GB 或 100 GB 這樣的高效能子連結通常更健康。

But I would generally tell you our margins are more affected by volume and customer mix than product mix.

但我通常會告訴你，我們的利潤更受到銷售和客戶組合的影響，而不是產品組合的影響。

Okay. And Tomahawk?

好的。還有戰斧？

In terms of chip vendors, we work with, we obviously work very close with them. We are in close trials and no company knows better how to work with merchant silicon than we do.

就我們合作的晶片供應商而言，我們顯然與他們合作非常密切。我們正在進行密切的試驗，沒有一家公司比我們更了解如何與商業晶片合作。

We were work with three or four types of them. We look to add diversity there, we don't just take the silicon. So we're very excited about our partnership with Broadcom and all the opportunities it represents.

我們與三、四種類型的人一起工作。我們希望增加多樣性，而不僅僅是晶片。因此，我們對與博通的合作夥伴關係及其所帶來的所有機會感到非常興奮。

Okay. And on the operating expense -- excuse me, on the legal expense and taking it out of pro forma. So the logic of a that is it's going to be a variable that's going to swing around quarter depending on quarter activity?

好的。關於營運費用——請原諒，關於法律費用並將其從備考中扣除。那麼，它的邏輯是，它將成為一個根據季度活動在季度左右波動的變數？

Exactly right. It could be.

非常正確。它可能是。

Okay. Last question. Are you taking share versus Cisco on the Nexus 9000? Any feedback on that?

好的。最後一個問題。您是否正在與思科爭奪 Nexus 9000 的份額？對此有何反饋？

And then one other one if I can squeeze. Was Microsoft a 10% customer in Q4?

如果我能擠的話，然後再來一張。微軟在第四季是 10% 的客戶嗎？

We do not break our concentration by quarter, so I can't answer that. But our we taking share relative to the main competitor? We believe we are. We believe Cisco's market share in 1040 and 100 when the results come out will show they decreased and Arista increased.

我們不會按季度分散注意力，所以我無法回答這個問題。但我們相對於主要競爭對手的份額如何？我們相信我們是。我們相信思科在1040和100的市場份額當結果出來時會顯示它們有所下降而Arista增加。

Thank you.

謝謝。

Hendi Susanto, Gabelli.

亨迪·蘇珊托，加貝利。

Good afternoon and thank you for taking my questions. One question, if I look at your new Arista presentation, the data center switching market size estimate has been revised lower. Would you please share some insight on that lower revision?

下午好，感謝您回答我的問題。有一個問題，如果我看一下你們新的 Arista 演示文稿，就會發現資料中心交換市場規模的估計已被下調。能分享一些關於較低版的見解嗎？

You know, we don't control the forecasts of products. But I would say that generally in the range ASPs of products have stabilized but, obviously, prices have in past years gone down as much as 10% or 15% a year.

您知道，我們無法控制產品的預測。但我想說的是，一般來說，產品的平均售價已經穩定下來，但顯然，過去幾年價格每年下降了 10% 或 15%。

So I think the $7 billion got revised to $6.9 billion, and the CAGR growth is still a very, very solid 14% to 15% a year, which is double digits. So I wouldn't read too much into it. It's always hard to project the future years. So I think the difference between 2014 at $6.9 billion and $7 billion, which is the original forecast, is within the round-off errors.

所以我認為 70 億美元被修改為 69 億美元，複合年增長率仍然非常非常穩定，每年 14% 到 15%，這是兩位數。所以我不會對其進行過多的解讀。預測未來幾年總是很困難。因此，我認為 2014 年 69 億美元和最初預測的 70 億美元之間的差異在四捨五入誤差之內。

Thank you, Jayshree, and congratulations on strong results.

謝謝你，Jayshree，並恭喜你取得了優異的成績。

Thank you.

謝謝。

Jeff Kvaal, Northland.

傑夫·科瓦爾，北國。

Thank you very much for taking the questions. I'm hoping that you can give us a few comments about 2015 in general, as I think last year you did give us a few comments about the balance of the year, although obviously later in the year. What can you tell us about how you feel the market is going to develop overall for revenue growth?

非常感謝您接受提問。我希望您能給我們一些關於 2015 年總體的評論，就像我認為去年您確實給我們一些關於今年剩餘時間的評論一樣，儘管顯然是在今年晚些時候。您能告訴我們您認為市場將如何整體發展以實現收入成長嗎？

Do you think that Microsoft is going to continue to, I think last year you said it would be flat, and spending overall and declines as a percentage of sales? Should we take -- could you comment on either of those two items, please?

您認為微軟會繼續，我想去年您說過它會持平，整體支出和占銷售額的百分比下降嗎？我們是否應該—您能對這兩項中的任何一項發表評論嗎？

I think it's a little too early for me to forecast any specific customer. But I would, in general, tell you we -- because of our diversification, we are less reliant on any one customer, as much as we were say back in 2013.

我認為現在預測任何特定客戶還為時過早。但總的來說，我會告訴你，由於我們的多元化，我們對任何一位客戶的依賴都減少了，就像我們在 2013 年所說的那樣。

Having said that, because we get such substantial spend and Microsoft is such an important partner, we expect to get a large spend but we still expect it to be flat to down this year. Not because we're doing anything wrong or they're doing anything wrong, but because they have spent so much so much with us. So that may change if Microsoft's strategy to spend more changes, but quite frankly we don't get visibility to it beyond one to two quarters.

話雖如此，由於我們獲得瞭如此大量的支出，而且微軟是如此重要的合作夥伴，我們預計會獲得大量支出，但我們仍然預計今年的支出將持平甚至下降。不是因為我們做錯了什麼，或是他們做錯了什麼，而是因為他們為我們付出太多太多了。因此，如果微軟增加支出的策略發生變化，情況可能會發生變化，但坦白說，我們在一到兩個季度之後才能看到這種情況。

Okay. Thank you.

好的。謝謝。

And then secondly, there's been a lot in the press about what Facebook is up to with its wedge and six packs, which is I think you have in the past, Jayshree, talked about how it's one application etc. Would you mind providing us a little color on how the relationship between you and Facebook is set to proceed through the course of the year? Thanks.

其次，媒體上有很多關於 Facebook 的楔子和六包的動態，我認為 Jayshree，您過去曾談論過它是如何成為一個應用程式等。您介意向我們提供一份嗎？您和Facebook 之間的關係在這一年中將如何發展？謝謝。

Our relationship with Facebook is stronger than it's ever been. We are very aware of the internal developments. We view them as a customer, a partner, not a competitor.

我們與 Facebook 的關係比以往任何時候都更加牢固。我們非常了解內部發展。我們將他們視為客戶、合作夥伴，而不是競爭對手。

And I think it's a natural progression for them to develop since they have very smart engineers, their FBOSS and wedge and OCP reference design. And they're very aware of the fact that that design complements what Arista does. So nothing's changed there in my commentary.

我認為他們的開發是一個自然的進步，因為他們擁有非常聰明的工程師、他們的 FBOSS、楔塊和 OCP 參考設計。他們非常清楚設計與 Arista 的功能相輔相成。所以我的評論沒有任何改變。

I just think you're seeing the examples and evidence of both what we do and what they do. And it really is a joint partnership. So we don't expect substantial change in the Facebook and Arista partnership in 2015.

我只是認為您看到了我們所做的事情和他們所做的事情的例子和證據。這確實是一種聯合夥伴關係。因此，我們預計 2015 年 Facebook 和 Arista 的合作關係不會發生重大變化。

In what sense are they complementary? If you can spend a more time on that it would appreciate it.

它們在什麼意義上是互補的？如果您能花更多時間在這上面，我將不勝感激。

I think I've said this before, and then we can go longer at a later time. Which is because we have so many knobs on our EOS for programmability, control plane, management plane, data plane and scripting capabilities, we're able to work with them in a very customized fashion, and we're not just dropping boxes.

我想我之前已經說過了，然後我們可以稍後再談更長時間。這是因為我們的 EOS 在可編程性、控制平面、管理平面、資料平面和腳本功能方面有很多旋鈕，我們能夠以非常客製化的方式與它們合作，而且我們不僅僅是丟棄盒子。

We also have a lot of features that we've developed our US code has gone from 1 million lines to over 8 million lines. So it's very different than an FBOSS single application. So diversity and general purpose applications we support and the customization we do with Facebook is very different than Facebook use case.

我們還有很多功能，我們開發的美國程式碼已經從 100 萬行增加到超過 800 萬行。所以它與 FBOSS 單一應用程式有很大不同。因此，我們支援的多樣性和通用應用程式以及我們對 Facebook 進行的客製化與 Facebook 用例有很大不同。

Great. Thank you, Jayshree.

偉大的。謝謝你，傑什裡。

Georgios Kyriakopoulos, SunTrust.

Georgios Kyriakopoulos，SunTrust。

Thank you. To expand the discussion on Facebook, what's the risk that other cloud Titans might decide to go to Facebook or Google Cloud and develop their own solutions in the future? so when you spend time talking to them, what are their plans that you seem to get from them?

謝謝。擴大Facebook上的討論，其他雲端巨頭未來可能決定去Facebook或Google Cloud並開發自己的解決方案的風險是什麼？因此，當您花時間與他們交談時，您似乎從他們那裡得到了哪些計劃？

It's really important to understand that Arista is a product built by engineers for engineers. That's why we do so well with these engineering organizations in these cloud Titans.

了解 Arista 是一款由工程師為工程師打造的產品非常重要。這就是為什麼我們與這些雲端巨頭中的工程組織合作得如此出色。

But it's also important to understand that these engineering of organizations are continuously developing and experimenting and building products of their own. They're not mutually exclusive. As I said, there's a captive market today that builds their own top of rack switches in a lot of these cloud Titans. So we work with them and where they have solution, they use their solutions. Were they need a spine or additional type of leafs or spines, they use our solution.

但同樣重要的是要了解，這些組織工程正在不斷開發、試驗和建立自己的產品。它們並不互相排斥。正如我所說，當今有一個專屬市場，在許多雲端巨頭中建立了自己的架頂交換器。因此，我們與他們合作，只要他們有解決方案，他們就會使用他們的解決方案。如果他們需要脊柱或其他類型的葉子或脊柱，他們會使用我們的解決方案。

I think it's important to understand, very important to understand, that there isn't a uniform network design which is just all one type. A mix-and-match is very common. Depending on the use cases.

我認為重要的是要理解，非常重要的是要理解，不存在只有一種類型的統一網路設計。混合搭配是很常見的。取決於用例。

And then on Cisco ACI, there has now been two full quarters since availability. You discussed previously that customers are finishing the testing evaluation, can you discuss if you experience longer cycles as customers evaluate the Cisco solution? And especially since your guidance for the March quarter is a bit softer?

然後，在思科 ACI 上，自推出以來已經過了整整兩個季度。您之前討論過客戶正在完成測試評估，您能否討論一下客戶評估思科解決方案時是否會遇到更長的週期？特別是因為您對三月季度的指導有點軟？

Quite the opposite. We are experiencing shorter sales cycles because people finally understand the difference between the vapor ware and what ACI really is. And therefore are embracing the universal cloud networking solution from Arista much more.

恰恰相反。我們正在經歷更短的銷售週期，因為人們終於了解了蒸汽製品和 ACI 的真正含義之間的差異。因此，我們更採用 Arista 的通用雲端網路解決方案。

Thank you very much.

非常感謝。

And, again, I can only speak to the four verticals. I'm sure there are areas of coverage where my competitors can speak much better to how it's doing, but in my customer domain the confusion of ACI is far greater than the acceptance.

再說一遍，我只能談論四個垂直領域。我確信在某些覆蓋領域，我的競爭對手可以更好地說明其做法，但在我的客戶領域，ACI 的混亂程度遠遠大於接受程度。

Sounds good. Thank you.

聽起來不錯。謝謝。

Ben Reitzes, Barclays.

本‧雷茨 (Ben Reitzes)，巴克萊銀行。

Hi, Jayshree and everybody. I wanted to ask two questions. Can you comment on how sales in EMEA and APAC trended versus your expectations?

大家好，Jayshree 和大家。我想問兩個問題。您能否評論一下歐洲、中東和非洲和亞太地區的銷售趨勢與您的預期有何不同？

Yes

是的

And sales investments and I just a one follow-up?

銷售投資和我只是一個後續行動？

As you can tell, we can do a whole lot better there. I feel like it of a broken record because I've said that for the last three quarters. I think the issue here is we're doing extremely well in all regions. So all boats are rising the tide. And because we're doing well in the United States, in some ways, it hides the fact that we're doing well in Asia, and Europe as well.

如您所知，我們可以在這方面做得更好。我覺得這像是一個打破的記錄，因為我在過去三個季度都這麼說過。我認為這裡的問題是我們在所有地區都做得非常好。所以所有的船都在漲潮。因為我們在美國做得很好，在某些方面，它掩蓋了我們在亞洲和歐洲也做得很好的事實。

But we can do a lot better. I'd be the first to admit that and Mark Smith, our sales leaders hired a new EMEA leader and we hired leaders for Asia-PAC, Australia, Japan and Korea, all of who are new. So I'm hoping for improved and even better performance in the next two years. But I would caution you all to be patient there just like I've had to be and realize it's not going to happen overnight.

但我們可以做得更好。我是第一個承認這一點的人，馬克史密斯（Mark Smith），我們的銷售領導者聘請了一位新的歐洲、中東和非洲地區領導者，我們還聘請了亞太地區、澳洲、日本和韓國的領導者，所有這些領導者都是新的。所以我希望在接下來的兩年裡能有進步，甚至更好的表現。但我要提醒大家要有耐心，就像我必須的那樣，並意識到這不會在一夜之間發生。

Okay. Great. Just with regard to -- simple question on pricing. Your gross margin was good, your guidance for gross margins seems quite confident, so in terms of the competitive issue with Cisco in pricing, how is that trending?

好的。偉大的。只是關於定價的簡單問題。你們的毛利率很好，你們對毛利率的指導似乎很有信心，那麼就與思科在定價方面的競爭問題而言，趨勢如何？

It hasn't changed.

它沒有改變。

And, obviously, it seems like they're aggressive. And your weathering that fine. Is there any other color you can give around it?

而且，顯然，他們看起來很有攻擊性。你的風化得很好。您可以在它周圍添加其他顏色嗎？

We're getting used to it. The weathering is fine. It hasn't the change. It's a way of life.

我們已經習慣了。風化效果很好。沒有這個變化啊這是一種生活方式。

It's a very competitive industry. But it's driven not just by price but performance and functionality and (inaudible). So we're holding our own.

這是一個競爭非常激烈的行業。但它不僅受到價格的驅動，還受到性能和功能的驅動（聽不清楚）。所以我們堅持自己的立場。

Alright. Thanks a lot.

好吧。多謝。

Sanjiv Wadhwani, Stifel.

桑吉夫·瓦德瓦尼，斯蒂菲爾。

Thanks. Jayshree, can you talk -- give us an update on channel development? What's going on there?

謝謝。 Jayshree，您能為我們介紹一下頻道開發的最新狀況嗎？那裡發生了什麼事？

Will you guys be spending more dollars and dimes building that in 2015 versus 2014? Thanks.

與 2014 年相比，2015 年你們會花更多的金錢和金錢來建造它嗎？謝謝。

Sanjiv, that's a good question. On one hand logic would suggest we should. On the other hand, as you know, are four verticals are less channel dependent. They look to buy from Arista and from folks channel.

桑吉夫，這是個好問題。一方面，邏輯顯示我們應該這麼做。另一方面，如您所知，四個垂直行業對管道的依賴性較小。他們希望從 Arista 和大眾頻道購買。

So the best answer I can give you at the moment, is we will be extremely selective in our choice of channels. Picking only elite partners who truly want to disrupt and change the landscape and not just be yet another enterprise provider. So you're not going to see us just sign-up volume channels for distribution.

因此，我目前可以給您的最佳答案是，我們在選擇管道時將非常有選擇性。只選擇真正想要顛覆和改變格局的精英合作夥伴，而不僅僅是成為另一個企業提供者。因此，您不會看到我們只是註冊大量分銷管道。

We are especially going to rely on channels internationally. We're also going to be looking at key technology partners, SIs, and really the V in value-added resellers and channels is going to be important to us. So look for us to be more selective than sort of carpet bomb channel strategy.

我們特別依賴國際通路。我們還將關注關鍵技術合作夥伴、SI，以及加值經銷商和通路中的 V 對我們來說非常重要。因此，我們應該比地毯式炸彈通路策略更有選擇性。

No change in terms of the amount of time or money this point be spent this year versus last it looks like?

今年在這一點上花費的時間或金錢與去年相比沒有變化嗎？

We will invest more, but no change in strategy.

我們會增加投資，但策略不會改變。

Got it. That's helpful. Thank you.

知道了。這很有幫助。謝謝。

Thank you.

謝謝。

Kulbinder Garcha, Credit Suisse.

Kulbinder Garcha，瑞士信貸。

My question is how diversified, let's say by the end of last year, Jayshree, was your business with the other cloud customers outside of Microsoft? Where are we in the penetration of those customers? I'm talking about you know the five that you have -- I'm trying to think how big that business really is and is the opportunity really ahead of you or have you reached an acceptable run rate your already at with those customers?

我的問題是，Jayshree，到去年年底，您與 Microsoft 以外的其他雲端客戶的業務有多多元化？我們在這些客戶的滲透率方面處於什麼位置？我說的是你知道你擁有的五個 - 我正在嘗試思考該業務到底有多大，機會是否真的擺在你面前，或者你是否已經達到了與這些客戶可以接受的運行率？

Kulbinder, you're fading a little volume. I'm going to just rephrase the question. How diversified were you the cloud Titans outside of Microsoft?

庫賓德，你的音量有點小了。我將重新表述一下這個問題。身為 Microsoft 以外的雲端巨頭，您的多元化程度如何？

I think we made big strides in 2014, but we have still a lot of scope and a lot of room in 2015 with the cloud Titans. I don't believe we are as penetrated in them as we are in Microsoft.

我認為我們在 2014 年取得了長足的進步，但在 2015 年，我們在雲泰坦方面仍然有很大的範圍和空間。我不認為我們對它們的了解像對微軟那樣深入。

Next question. Kulbinder, did you disappear? Let's go to the next question.

下一個問題。庫賓德，你失蹤了嗎？讓我們進入下一個問題。

Alex Henderson, Needham.

亞歷克斯·亨德森，李約瑟。

First question is on the tax rate. The tax rate guidance for that you gave for the last quarter is that still accurate and again assuming no R&D credit?

第一個問題是關於稅率。您上一季給出的稅率指引仍然準確，並且再次假設沒有研發抵免？

Right. So assuming a very similar kind of international to US split, which is around that 80% to 20%, 20% internationally, along with no R&D tax credit, that guidance of 30% to 32% holds.

正確的。因此，假設國際與美國的比例非常相似，即國際比例約為 80% 至 20%，國際比例為 20%，並且沒有研發稅收抵免，則 30% 至 32% 的指導是成立的。

And can you talk a little bit about the ability of the company to hire attractive people. I know you guys are pretty picky about you hire. In both the R&D and in the marketing side of the ledger?

您能談談公司僱用有吸引力的人才的能力嗎？我知道你們對招募非常挑剔。在帳本的研發和行銷方面？

I'll speak to that. Kelyn, you may want to add to that. We continue to hold the bar very, very high. You're absolutely right.

我會談到這一點。凱林，你可能想補充一下。我們繼續保持非常非常高的標準。你是絕對正確的。

It's getting increasingly competitive to find damn good engineers here in the Silicon Valley. And many engineers in networking we wouldn't hire here. We are expanding our focus and facilities beyond Santa Clara. We already have Bangalore, India and Vancouver, Canada as identified sites to expand internationally, and we'll be adding more.

在矽谷尋找優秀工程師的競爭越來越激烈。我們不會在這裡僱用許多網路工程師。我們正在將我們的重點和設施擴展到聖克拉拉以外的地區。我們已經將印度班加羅爾和加拿大溫哥華確定為國際擴張地點，我們還將增加更多地點。

I guess the question really isn't are you adding them, obviously you are, but when you grow your top line at 50% clip, I don't think you can find people at that rate. Are you finding it difficult to sustain your growth based on the number of people you're able to higher is the question.

我想問題實際上不在於你是否要增加他們，顯然你是，但是當你以 50% 的速度增長你的收入時，我認為你無法以這個速度找到人。您是否發現很難根據您能夠提升的人數來維持您的成長，這是一個問題。

No, we're not. Because I think if we can't hire them here, we'll hire than elsewhere. We're continuing to put emphasis on hiring. We are pleased at the rate of hiring we've done actually.

沒有，我們沒有。因為我認為如果我們不能在這裡僱用他們，我們會比其他地方僱用他們。我們將繼續重視招募。我們對實際的招募速度感到滿意。

Okay. Last question and then I'll cede the floor.

好的。最後一個問題，然後我就讓出發言權。

You've talked a lot about the cloud Titans, can you give us any guidance or any thoughts at all on the rate of change in spending in that arena. Has there been any hiccups in terms of the last couple of quarters in the spending rate that might cause a change in either acceleration or deceleration as we go into 2015?

您已經談論了很多關於雲泰坦的問題，您能給我們提供有關該領域支出變化率的任何指導或任何想法嗎？在進入 2015 年時，過去幾季的支出率是否出現了任何可能導致支出加速或減速變化的問題？

I'm not able to answer that because, I think, our visibility is short term. But we haven't seen any hiccups but we always see lumpiness.

我無法回答這個問題，因為我認為我們的知名度是短期的。但我們沒有看到任何問題，但我們總是看到凹凸不平的現象。

Okay. I'll cede the floor. Thank you.

好的。我將讓出發言權。謝謝。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

This Victor Chu in for Simon Leopold. I just wanted to ask if you could give us an update on the partnership with VMWare and how the pipeline is developing based on that?

這位維克多·朱（Victor Chu）飾演西蒙·利奧波德（Simon Leopold）。我只是想問您能否向我們介紹一下與 VMWare 合作的最新情況以及基於此的管道是如何開發的？

Our partnership with VMWare is one of my favorite and never been better. I think we have a common vision, common strategy and the integration with both ESX and NSX, as well as other touch points we have, is the best it's been.

我們與 VMWare 的合作關係是我最喜歡的合作夥伴關係之一，而且從未如此美好。我認為我們擁有共同的願景、共同的策略，並且與 ESX 和 NSX 以及我們擁有的其他接觸點的整合是最好的。

It's still early days. We announced this partnership in August, September last year. We have a number of customers together already on ESX, and we're now developing a customer base for NSX as well.

現在還為時過早。我們在去年八月、九月宣布了這項合作關係。我們已經在 ESX 上擁有了許多客戶，現在我們也正在為 NSX 開發客戶群。

Okay, great that's helpful. On the international front, I just wanted to ask if you guys were seeing any impact from foreign exchange or any currency impacts and if that was a driver at all if you expect it might impact the results in 2015?

好的，太好了，很有幫助。在國際方面，我只是想問你們是否看到了外匯或任何貨幣影響的任何影響，如果你們預計這可能會影響 2015 年的結果，這是否是一個驅動因素？

Absolutely not. As I think about our currency balance and our subsidiaries we have pretty much natural hedges in place and so we only have the one quarter back in Q3 with the Euro that had a little bit of an impact but not really. I'm not seeing an impact from in OpEx perspective and we're not seeing an impact as we think our top line growth over there. So, no, we are not exposed.

絕對不。當我想到我們的貨幣平衡和我們的子公司時，我們有相當多的自然對沖，因此我們在第三季度只有一個季度的歐元產生了一點影響，但並不是真正的影響。從營運支出的角度來看，我沒有看到影響，我們也沒有看到影響，因為我們認為我們的營收成長就在那裡。所以，不，我們沒有暴露。

Great. Thank you.

偉大的。謝謝。

Jess Lubert, Wells Fargo.

傑西·盧伯特，富國銀行。

I also had two questions. First for Jayshree, another one on the channel and to what degree you are finding partners interested in working with you. Are you seeing competitors make it difficult for you to develop your channel? And how important of a growth driver to the channel the in 2015?

我還有兩個問題。第一個是 Jayshree，另一個是頻道上的，以及您在多大程度上找到有興趣與您合作的合作夥伴。您是否發現競爭對手使您難以發展自己的通路？ 2015年成長動力對通路有多重要？

I think the channel will be a very important growth driver for us internationally.

我認為該通路將成為我們國際化非常重要的成長動力。

In the US we're going to look for a different breed those that are capable of selling innovative technology focusing on new markets like big data, data analytics, the virtualization, the cloud, the software define networks. And so traditional channels, we will continue to use for fulfillment, but for value add, I think our criteria is going to make its a more unique requirement.

在美國，我們將尋找不同的品種，那些能夠銷售專注於大數據、數據分析、虛擬化、雲端、軟體定義網路等新市場的創新技術的公司。因此，我們將繼續使用傳統管道來實現目標，但為了增加價值，我認為我們的標準將使其成為更獨特的要求。

So are we having difficulty? No, because I think just like our hiring we're putting a different bar on it. We have different criteria.

那我們有困難嗎？不，因為我認為就像我們的招募一樣，我們也設定了不同的標準。我們有不同的標準。

We'll be more selective and we're not going to measure our success by how many channels we signed. We're going to look for quality over quantity.

我們將更加挑剔，我們不會透過簽署的管道數量來衡量我們的成功。我們將尋求質量而不是數量。

That's helpful. And then for Kelyn, I had a modeling question. The operating margin outlook for Q1 was a little bit better than I would have expected given some of the SOX costs we've talked about in the past and the need to invest for growth.

這很有幫助。然後對於凱林，我有一個建模問題。考慮到我們過去討論過的一些 SOX 成本以及成長投資的需要，第一季的營業利潤率前景比我預期的要好一些。

I'd like to understand how we should be thinking about these items through the remainder of the year and assuming we see sequential revenue growth beyond Q1, which I would expect. Is there any reason we shouldn't also be modeling sequential operating margin improvement from Q1 levels? Any thoughts there would be helpful.

我想了解我們應該如何在今年剩餘時間內考慮這些項目，並假設我們看到第一季之後的收入連續成長，這是我所期望的。我們是否有任何理由不應該對第一季營運利潤率的連續改善進行建模？任何想法都會有幫助。

You know what, as I think about it, we have in our annual operating plan all the we've captured all the costs it's going to take to get SOX compliant. You know get the 404 opinion from our auditors Ernst & Young.

你知道嗎，正如我所想，我們的年度營運計畫中已經包含了遵守 SOX 規定所需的所有成本。您知道我們的審計師安永會計師事務所 (Ernst & Young) 給了 404 意見。

But as we kind of give the guidance out there is a early of flurry of activity here and there, and then it slacks off as you are back into testing. And so, I think what we would -- what I would ask you to do is wait for the guidance on the next quarter because there could be a little bit of lumpiness there, but everything's planned for.

但當我們給予指導時，早期到處都有一些活動，然後當你回到測驗時，活動就會減弱。因此，我認為我們會 - 我會要求你們做的是等待下個季度的指導，因為那裡可能會有一點混亂，但一切都已計劃好了。

Is it fair to assume that you would expect higher operating margins in the second half of the year versus the first half of the year as those tale off?

隨著情況的發展，您預計下半年的營業利潤率將高於上半年，這是否公平？

Not necessarily, no.

不一定，不是。

Any thoughts on what could potentially be the impact there if we do see the growth develop as we expect? What the incremental cost would be to offset that?

如果我們確實看到成長如我們預期的那樣發展，您有什麼想法可能會產生什麼影響嗎？抵銷這一點的增量成本是多少？

I would tell you that if you think about, certainly my area, G&A, we're relatively a fixed -- we're relatively fixed with headcount and what we're spending with consultants in getting through SOX and also investing in our ERP system. So if we do see significant growth on the top line you'll see, from a G&A perspective of course, you will see leverage. Having said that, you'll also see us use the opportunity to continue to invest in R&D, both in headcount and as we think about development activities around new products and new silicon coming in and also in our sales and marketing organization.

我想告訴你，如果你想一想，當然是我的領域，G&A，我們是相對固定的——我們的員工人數以及我們在顧問身上花費的費用是相對固定的，以通過SOX 並投資於我們的ERP 系統。因此，如果我們確實看到營收顯著成長，您會看到，當然，從一般管理費用的角度來看，您會看到槓桿作用。話雖如此，您還會看到我們利用這個機會繼續投資於研發，無論是在人員數量上，還是在我們考慮圍繞新產品和新晶片的開發活動以及我們的銷售和行銷組織時。

So if you think about on the bottom line, we feel comfortable for Q1 at that 22% to 25%. And, of course, G&A later on if revenue growth will get leveraged and you would say as a percent of revenue improvement there. But we could use as investments in R&D and sales and marketing.

因此，如果你考慮底線，我們對第一季的 22% 至 25% 感到滿意。當然，如果收入成長能夠得到槓桿作用，那麼稍後的一般管理費用（G&A），你可以說是收入改善的百分比。但我們可以將其用作研發、銷售和行銷方面的投資。

Alright, thanks.

好的，謝謝。

Rohit Chopra, Buckingham.

羅希特·喬普拉，白金漢宮。

Thanks very much. A couple questions.

非常感謝。有幾個問題。

Jayshree, just given there was a slight shift in the cloud Titans. I just want to get a sense on adoption of other platforms. So below the high end, maybe the 7150, the 7280, I know there were some trials of that. So adoption there.

Jayshree，剛剛考慮到雲泰坦發生了輕微的變化。我只是想了解其他平台的採用情況。所以低於高端，也許是 7150、7280，我知道有一些這樣的嘗試。所以收養在那裡。

And then the other thing I want to ask is back to legal. I know Mark gave his comments there, but are you guys having to make or are you thinking about making any changes as a contingency and should we expect R&D to pick up for that as well?

然後我想問的另一件事是回到合法性。我知道馬克在那裡發表了評論，但是你們是否必須做出或正在考慮做出任何改變作為應急措施，我們是否應該期望研發也能為此做出改變？

I'm going to as of the first question and let Mark answer the second. In terms of acceptance of platforms, the flagship platform is really our US and then everything else is form factor, right? The 7500E has been particularly well received because it's the only platform in the industry that's a spine-flat platform that can be do 10, 40, 100-gig with the right buffering. It's surprising to me that no one else does that. For the combination of the US the 7500E has been very well received.

我將從第一個問題開始，讓馬克回答第二個問題。就平台接受度而言，旗艦平台確實是我們美國，然後其他一切都是外形因素，對嗎？ 7500E 受到了特別好評，因為它是業內唯一一款可以在適當緩衝的情況下實現 10、40、100 GB 的平脊平台。令我驚訝的是沒有人這樣做。對於美國的組合來說7500E一直很受歡迎。

The 7280 is a cousin that platform it's a miniature version. So that's been very well received as well. The 7150, particularly well received for certain use cases like data analytics, monitoring and a VIA plan virtualization.

7280 是該平台的表親，它是一個微型版本。所以這也很受歡迎。 7150 在數據分析、監控和 VIA 計劃虛擬化等某些用例中特別受歡迎。

So really have different folks and different strokes and different platforms and different use cases but in general the common thread through it all would be EOS and our spine platforms. Mark, do you want to comment on the legal side?

因此，確實有不同的人、不同的筆觸、不同的平台和不同的用例，但總的來說，貫穿這一切的共同點是 EOS 和我們的主幹平台。馬克，您想從法律方面發表評論嗎？

Sure. I think the nature of litigation, as we all know, really is that the claims -- learning more about the claims and how they impact of products that are going to be developed over time, that comes out through discovery and through the litigation process generally. We clearly have a number of different options that we're going to be considering as part of the defense, some of which may include potential design arounds, of course, but those things are going to be developed over time.

當然。我認為，眾所周知，訴訟的本質實際上是索賠——更多地了解索賠以及它們如何影響將隨著時間的推移而開發的產品，這些索賠通常是透過發現和訴訟過程得出的。顯然，我們將考慮許多不同的選擇作為防禦的一部分，當然，其中一些可能包括潛在的設計方案，但這些東西將隨著時間的推移而發展。

Too early to call what they would be.

現在判斷它們會是什麼樣子還為時過早。

Thanks guys.

多謝你們。

Last question.

最後一個問題。

Ehud Gelblum, Citigroup.

埃胡德·格爾布魯姆，花旗集團。

Couple of things. First of all, Kelyn, just a couple of clarifications.

有幾件事。首先，Kelyn，我需要澄清一些問題。

Were there any legal costs in Q4 so we can comp it to your guidance going forward? And then OpEx seems to be flat going into Q1, flattish. Given the growth in international sales marketing, I just want to get a sense as to how that pans in there.

第四季是否有任何法律費用，以便我們可以將其與您未來的指導進行比較？然後，進入第一季度，營運支出似乎持平，持平。鑑於國際銷售行銷的成長，我只是想了解它是如何發展的。

Then on some larger picture questions, Jayshree, are you running even into the 9000 at all? Cisco says the 9000 is now in 1,700 customers that's out of a platform of what, 40,000 to 50,000 customers? So there could be large gaps in that customer base you're not even running into the upgraded 9000. I just want to see how many times you go head-to-head with them. And then finally --

那麼，在一些更宏觀的問題上，Jayshree，你是否能達到 9000 呢？思科表示 9000 現已在 1,700 個客戶中使用，這是什麼平台，40,000 到 50,000 個客戶？因此，客戶群中可能存在很大的差距，您甚至沒有遇到升級後的 9000。我只是想看看您與他們正面交鋒的次數。最後——

Can we just hold on so we can absorb and answer.

我們能否堅持下去，以便我們能夠吸收和回答。

Okay. Sure.

好的。當然。

So as far as legal, there was no legal expense pulled out of Q4 whatsoever. As you know, you know, Cisco sued us in early December and so no real meaningful legal expense related to Cisco. And OptumSoft litigation has consistently been put into the numbers throughout 2014 since that lawsuit occurred in April and so now there's nothing pulled out there.

因此，就法律而言，第四季沒有任何法律費用。如您所知，您知道，思科在 12 月初起訴了我們，因此沒有與思科相關的真正有意義的法律費用。自 4 月發生訴訟以來，OptumSoft 的訴訟一直被納入 2014 年的數據中，所以現在沒有任何結果。

Okay.

好的。

And then as far as the OpEx flattish to slightly up Q4 to Q1. We feel good about the investments that we're making there, and we're continuing to hire. And we have our marketing programs in place and we have spend in there for what we need for any type of prototypes with new products coming on, so feel good about the number.

然後，營運支出從第四季到第一季持平，略有上升。我們對在那裡進行的投資感到滿意，並且我們將繼續招募。我們已經制定了行銷計劃，並在其中投入了任何類型的原型和即將推出的新產品所需的資金，所以對這個數字感到滿意。

What was your second question, Ehud?

艾胡德，你的第二個問題是什麼？

And I had actually a followup. That question was are you even running into the Cisco 9000 given the number they give these to be a small number of customers overall?

我實際上有一個後續行動。這個問題是，考慮到他們給的整體客戶數量很少，您是否遇到過 Cisco 9000？

I think Cisco needs to answer what percentage of their overall switching business the 9000 is. I think that's small; therefore, we don't run into as often but we do see it occasionally. And we are able to compete against it very effectively because we would've been working with merchant silicon a lot longer than they have.

我認為思科需要回答 9000 佔其整體交換業務的比例是多少。我認為這很小；因此，我們不會經常遇到，但偶爾會看到。我們能夠非常有效地與之競爭，因為我們與商業晶片合作的時間比他們長得多。

Okay. Let me ask you two quick follows.

好的。讓我問你兩個簡單的問題。

One is you talk about your big four verticals. And you talk about the whole $7 billion data center market. What percent of that market can you hit by just being in those verticals without having to push too far into the channel?

一是您談論您的四大垂直領域。您談到了整個 70 億美元的資料中心市場。只要進入這些垂直領域，而無需深入進入管道，您就能佔據該市場的百分之幾？

And then as a follow-up to that, when you do push out beyond those in the more mainstream enterprise, as you say you're looking to do, are those mainstream enterprise guys using the same parts of EOS that your big four vertical guys are using? Or are there different aspects that attract them?

然後作為後續行動，當您確實將業務擴展到更主流的企業之外時，正如您所說的您想要做的那樣，那些主流企業人員是否使用與您的四大垂直人員相同的 EOS 部分正在使用？或是有什麼不同的面向吸引他們？

Yes, I'll answer your second question first. The case of adoption is really defining the four verticals, right? And they tend to be the most sophisticated in features and capabilities and demanding things from us.

是的，我先回答你的第二個問題。採用的案例確實定義了四個垂直領域，對吧？它們的特性和功能往往是最複雜的，對我們的要求也最高。

So the follow-on enterprises tend to use similar features or less of it. In other words, if we can do these four really well, these are our toughest most mission critical use cases. So the other ones are natural subsets of that if you will.

因此後續企業往往會使用類似或更少的功能。換句話說，如果我們能真正做好這四個面向，那麼這些就是我們最困難、最關鍵的任務案例。所以如果你願意的話，其他的都是它的自然子集。

We are seeing acceptance in a couple of enterprise verticals that seem to be promising including education and research labs and media and entertainment. So I do believe we can branch out very easily from the high-tech enterprise into some of these others but at the moment --

我們看到一些看似有前途的垂直行業被接受，包括教育和研究實驗室以及媒體和娛樂。所以我確實相信我們可以很容易地從高科技企業擴展到其他一些企業，但目前——

And you're seeing that for the same reasons or for different reasons? What are the attractive to in EOS? The same things?

您是出於相同的原因還是出於不同的原因看到了這一點？ EOS有什麼吸引力？一樣的東西嗎？

They're more about case of adoption. The reasons our similar. They're just not at the same early pace of adoption of the first four verticals were.

他們更多的是關於收養的情況。原因我們類似。他們只是沒有達到前四個垂直行業的早期採用速度。

So that's consistent uniform cloud networking with programmable features is what makes us unique and differentiated from other proprietary lock-in systems. We say all the workloads and all the workflows have to be handled in a similar fashion rather than customized for each enterprise and application like the mainstream world was.

因此，具有可編程功能的一致的統一雲端網路使我們與眾不同，並與其他專有鎖定係統區分開來。我們說所有工作負載和所有工作流程都必須以類似的方式處理，而不是像主流世界那樣為每個企業和應用程式進行客製化。

So not only do the four verticals but all the follow on verticals love that to. It does get time to change an habit. The enterprises the been around for 20 years, and I think that's what we're dealing with. That's where our next four verticals would come up when it's time for them to disrupt and change.

因此，不僅四個垂直行業喜歡這一點，而且所有垂直行業的追隨者都喜歡這一點。確實需要時間改變習慣。這些企業已經存在了 20 年，我認為這就是我們正在處理的問題。這就是我們接下來的四個垂直領域在需要顛覆和改變時出現的地方。

And of the big four verticals you're big in right now, what percentage of the market do they represent?

在您目前所涉足的四大垂直領域中，它們所佔的市場份額是多少？

I don't know. We've not really broken it down, right?

我不知道。我們還沒有真正分解它，對吧？

No

不

How far can you run with those guys before you have to get too far into the mainstream?

在你不得不進入主流之前，你能和這些人一起走多遠？

Okay. Thank you everyone this concludes the Arista Q4 2014 earnings call. I also want to mention that we have posted a presentation which provides additional perspective on our 2014 fiscal results, which you can access on the investor section of our website. And thank you to everyone for joining us today.

好的。謝謝大家，Arista 2014 年第四季財報電話會議到此結束。我還想提一下，我們已經發布了一份演示文稿，其中提供了有關我們 2014 年財務業績的更多觀點，您可以在我們網站的投資者部分訪問該演示文稿。感謝大家今天加入我們。

Thank you for joining ladies and gentlemen. And this concludes today's call. You may now disconnect.

感謝您的加入，女士們、先生們。今天的電話會議到此結束。您現在可以斷開連線。