Arista Networks Inc (ANET) 2017 Q1 法說會逐字稿

Welcome to the First Quarter 2017 Arista Networks Financial Results Earnings Conference Call.

歡迎參加 Arista Networks 2017 年第一季財務業績電話會議。

(Operator Instructions) 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.

（操作員說明）謹此提醒，本次會議正在錄製中，並可在本次電話會議後在 Arista 網站的投資者關係部分重播。

I will now turn the call over to Mr. Charles Yager, Director of Investor Relations.

我現在將把電話轉給投資者關係總監 Charles Yager 先生。

Sir, you may begin.

先生，您可以開始了。

Thank you, operator.

謝謝你，接線生。

Good afternoon, everyone.

大家下午好。

Thank you for joining us.

感謝您加入我們。

With me on today's call are Jayshree Ullal, Arista Networks' President and Chief Executive Officer; and Ita Brennan, Arista's Chief Financial Officer.

參加今天電話會議的有 Arista Networks 總裁兼執行長 Jayshree Ullal；以及 Arista 財務長 Ita Brennan。

This afternoon, Arista Networks issued a press release announcing the results for its fiscal first quarter 2017.

今天下午，Arista Networks 發布新聞稿，公佈了 2017 財年第一季的業績。

If you would like a copy of the release, you can access it online at the company's website.

如果您想要該版本的副本，可以在該公司的網站上線上存取。

During the course of this conference call, Arista Networks' management will make forward-looking statements, including those related to our financial outlook for the second quarter of the 2017 fiscal year, industry innovation, our market opportunity and the impact of litigation, which are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically, in our most recent Form 10-K and Form 10-Q, which -- and which could also cause actual results to differ materially from those anticipated by these statements.

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 2017 財年第二季度的財務前景、行業創新、我們的市場機會以及訴訟影響相關的聲明，這些聲明包括：取決於我們在向SEC 提交的文件中詳細討論的風險和不確定性，特別是在我們最新的10-K 表格和10-Q 表格中，這些風險和不確定性也可能導致實際結果與結果有重大差異這些聲明所預期的。

These forward-looking statements as of today, and you should not -- apply as of today, and you should not rely on them as representing our views in the future.

截至今天的這些前瞻性陳述，您不應該從今天開始應用，您不應該依賴它們來代表我們未來的觀點。

We undertake no obligation to update these statements after this call.

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.

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。

We have provided reconciliation of these non-GAAP financial measures to GAAP financial measures in our earnings press release.

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.

這樣，我會將電話轉給 Jayshree。

Thank you, Charles.

謝謝你，查爾斯。

Thank you, everyone, for joining us this afternoon for the first quarter of 2017 earnings call.

感謝大家今天下午參加我們 2017 年第一季的財報電話會議。

I am pleased to report that we had a pretty good quarter, given our normal seasonality.

我很高興地報告，考慮到正常的季節性，我們的季度表現相當不錯。

We demonstrated our predictable and profitable growth with a non-GAAP revenue of $335.5 million, as we grew 38.5% year-over-year.

我們展示了可預測的獲利成長，非 GAAP 收入為 3.355 億美元，年增 38.5%。

Non-GAAP earnings per share was $0.93 with an operating margin of 30.2%.

非 GAAP 每股收益為 0.93 美元，營業利潤率為 30.2%。

Services contribution was higher at 13% of overall sales.

服務貢獻較高，佔總銷售額的 13%。

From a geographic perspective, our customers in the Americas contributed 79% of total revenue, while the rest of our international theaters progressed steadily in the quarter.

從地理角度來看，我們在美洲的客戶貢獻了總收入的79%，而我們其餘的國際影院在本季度穩步成長。

We delivered non-GAAP gross margins of 64.2% in our highly dynamic and competitive industry.

在這個充滿活力和競爭激烈的行業中，我們的非 GAAP 毛利率為 64.2%。

Our top 10 customers included 4 verticals, namely: our cloud titans, our cloud specialty and service providers and financial services.

我們的十大客戶包括 4 個垂直行業，分別是：我們的雲端巨頭、我們的雲端專業和服務供應商以及金融服務。

Our new customer acquisition continues to be healthy, made up mostly of leading high-tech enterprise customers.

我們的新客戶獲取持續健康，大部分由領先的高科技企業客戶組成。

In terms of new introductions for the quarter, we began the year, in February 2017, with the introduction of Arista Data ANalyZer, short for DANZ.

就本季的新推出而言，我們在 2017 年 2 月開始了這一年，推出了 Arista Data ANalyZer（DANZ 的縮寫）。

DANZ is a programmable, state-driven data analysis architecture and software, bringing the next frontier of network packet broker telemetry.

DANZ 是一種可程式化、狀態驅動的資料分析架構和軟體，帶來了網路封包代理遙測的下一個前沿。

DANZ in 2017 is supported in Arista's popular 7150 and 7280R leaf series as well as 7500R Universal Spine and is coupled with CloudVision telemetry offerings.

2017 年，Arista 廣受歡迎的 7150 和 7280R leaf 系列以及 7500R Universal Spine 支援 DANZ，並與 CloudVision 遙測產品結合。

Delivering any-to-any mirroring of network traffic up to 100 gigabit line rates, this is a compelling advantage of 10 to 60x over standalone products.

提供高達 100 Gb 線路速率的任意到任意網路流量鏡像，這是比獨立產品高 10 至 60 倍的引人注目的優勢。

This includes high-performance hybrid mode operation with traffic capture analysis filtering all in a compact footprint with low power and cost savings.

這包括高效能混合模式操作和流量擷取分析過濾，所有操作都在緊湊的佔地面積內進行，且功耗低，節省成本。

This quarter, we also announced a certification of Arista's 7000 series from the Joint Interoperability Command, JITC, for inclusion in U.S. Department of Defense, DoD, Approved Product List.

本季度，我們也宣布 Arista 7000 系列獲得聯合互通性司令部 (JITC) 的認證，列入美國國防部 (DoD) 批准產品清單。

At Arista 2017 Analyst Day on March 7 in our headquarters, we unveiled the game-changing containerization architecture, the Arista cEOS.

在 3 月 7 日在總部舉行的 Arista 2017 分析師日上，我們推出了改變遊戲規則的容器化架構 Arista cEOS。

This containerized extensible operating system provides controls across the server network as containers leveraging the mechanisms of our state-driven network-wide database, NetDB.

這種容器化的可擴展作業系統提供了跨伺服器網路的控制，作為利用我們的狀態驅動的網路範圍資料庫 NetDB 機制的容器。

Customers can now deploy EOS natively as a containerized application where cEOS supports multifaceted use cases, including natively hosting containers to create application-specific customizations, network functionality between virtual machine servers and containerized applications and the simulation of 30 large networks for their behavior under load.

客戶現在可以將EOS 作為容器化應用程式本地部署，其中cEOS 支援多方面的用例，包括本地託管容器以創建特定於應用程式的自訂、虛擬機器伺服器和容器化應用程式之間的網路功能以及模擬30 個大型網路在負載下的行為。

cEOS was also demonstrated at the March OCP Event with Microsoft SONiC.

cEOS 也在 3 月的 OCP 活動中與 Microsoft SONiC 一起進行了演示。

Our launch of cEOS really underpins our continued differentiation in cloud networking based on 5A principles: available architecture, to deliver a self-healing, high-quality aperture for data across a highly resilient leaf/spine network; Agile Work-X, delivering microservices for bare metal compute on new workload such as containers, workstreams like video or workflow for storage; automation, to rapidly provision a modern software infrastructure for the agile deployment in minutes rather than hours or days; analytics, tracing deeply the workflow to quickly pinpoint problems through our tracer technology for dynamic telemetry; and finally, [NE] IPI Cloud, whereby the state of the network via Arista NetDB and open APIs offers public, private and hybrid cloud access with our rich partner ecosystem.

我們推出的 cEOS 確實鞏固了我們在基於 5A 原則的雲端網路方面的持續差異化：可用架構，為跨高度彈性葉/主幹網路的資料提供自我修復、高品質的孔徑； Agile Work-X，為容器等新工作負載、視訊等工作流程或儲存工作流程提供裸機運算微服務；自動化，在幾分鐘而不是幾小時或幾天內快速配置現代軟體基礎設施以實現敏捷部署；分析，深入追蹤工作流程，透過我們的動態遙測追蹤技術快速找出問題；最後，[NE] IPI Cloud，網路狀態透過 Arista NetDB 和開放 API 提供公有、私有和混合雲存取以及我們豐富的合作夥伴生態系統。

As I reflect upon 2017, and I'll start, I am pleased with Arista's performance and trajectory.

當我回顧 2017 年並開始時，我對 Arista 的表現和軌跡感到滿意。

Arista has restored majority of its lead times as we're now in mainstream production across both our domestic and international manufacturing site.

Arista 已恢復了大部分交貨時間，因為我們現在在國內和國際製造工廠均處於主流生產狀態。

We continue to invest in cultivating key talent, retaining our engineering groups.

我們持續投資培養關鍵人才，留住我們的工程團隊。

To that end, I am also pleased to welcome John McCool as our new Chief Platform Officer for platform, hardware engineering and manufacturing operations.

為此，我還很高興歡迎約翰·麥庫爾 (John McCool) 擔任我們負責平台、硬體工程和製造業務的新首席平台長。

John has worked closely with both Andy and myself for over 3 decades as a trusted industry executive.

作為值得信賴的行業高管，約翰與安迪和我本人密切合作了 30 多年。

In this newly created role, John will be one of our key assets in the technical leadership team, complementing our already strong anchors, Andy Bechtolsheim, our Chief Development Officer and Chairman; Ken Duda, our Founder and Software Senior Vice President and Chief Technology Officer; and Anshul Sadana, our Chief Customer Officer.

在這個新設立的角色中，約翰將成為我們技術領導團隊中的關鍵資產之一，補充我們已經強大的支柱，我們的首席開發官兼董事長安迪·貝托爾斯海姆（Andy Bechtolsheim）； Ken Duda，我們的創辦人兼軟體資深副總裁兼技術長；以及我們的首席客戶長 Anshul Sadana。

With that I will now turn it to Ita, our CFO, for Q1 2017 financial details.

現在，我將向我們的財務長 Ita 詢問 2017 年第一季的財務詳細資料。

Thanks, Jayshree, and good afternoon.

謝謝，Jayshree，下午好。

This analysis of our Q1 results and our guidance for Q2 '17 is based on non-GAAP and excludes all noncash, stock-based compensation expenses and legal costs associated with the ongoing lawsuits.

對我們第一季業績的分析和我們對 17 年第二季的指導是基於非公認會計準則，不包括所有非現金、基於股票的補償費用以及與正在進行的訴訟相關的法律費用。

A full reconciliation of our selected GAAP to non-GAAP results is provided in our earnings release.

我們的收益報告中提供了我們選擇的 GAAP 與非 GAAP 績效的全面對帳。

Total GAAP revenues in Q1 were $335.5 million, up 38.5% year-over-year and above our guidance of $320 million to $330 million.

第一季 GAAP 總營收為 3.355 億美元，年增 38.5%，高於我們 3.2 億至 3.3 億美元的指引。

Demand in the quarter remained strong, reflecting continued broad-based adoption of our products.

本季的需求依然強勁，反映出我們的產品持續廣泛採用。

Service revenues represented approximately 13% of revenue, up from 12% last quarter.

服務收入約佔收入的 13%，高於上季的 12%。

International revenues came in at $70.6 million or 21% of total revenue, down from 23% in the prior quarter.

國際營收為 7,060 萬美元，佔總營收的 21%，低於上一季的 23%。

We remain focused on expanding our international footprint, but you should expect our geographical revenue mix to fluctuate on a quarter-over-quarter basis depending on the timing of U.S. and international deployments.

我們仍然專注於擴大我們的國際足跡，但您應該預期我們的地理收入組合會根據美國和國際部署的時間而逐季度波動。

Overall gross margin in Q1 was 64.2%, down slightly from last quarter at 64.4% and favorable to the midpoint of our guidance of 61% to 64%.

第一季的整體毛利率為 64.2%，較上季的 64.4% 略有下降，有利於我們 61% 至 64% 指引值的中位數。

This improvement versus guidance primarily reflected a higher-than-expected consumption of components sourced internationally during a previously opened importation window.

與指引相比的改善主要反映了在先前開放的進口窗口期間國際採購零件的消耗量高於預期。

Operating expenses for the quarter came in at $113.9 million, up 8.4% from last quarter.

本季營運費用為 1.139 億美元，較上季成長 8.4%。

R&D spending returned to a more typical 21.5% of revenue period, up from 19.1% last quarter.

研發支出佔營收的比重從上季的 19.1% 恢復到更為典型的 21.5%。

This reflects expected increases in prototype and NRE spending and continued headcount growth.

這反映了原型和 NRE 支出的預期增加以及員工人數的持續成長。

Sales and marketing expense remained at approximately 10% of revenue, down slightly from last quarter.

銷售和行銷費用仍佔營收的 10% 左右，較上季略有下降。

Our operating income for the quarter was $101.3 million or 30.2% of revenue.

我們本季的營業收入為 1.013 億美元，佔營收的 30.2%。

Other income expense for the quarter was a favorable $0.3 million, and our effective tax rate was 29.3%, resulting in net income for the quarter of $71.8 million or 21.4%.

本季的其他收入支出為 30 萬美元，有效稅率為 29.3%，因此本季的淨利潤為 7,180 萬美元，即 21.4%。

Our diluted share number for the quarter was 77.5 million shares, resulting in a diluted earnings per share number of $0.93, up 36% from the prior year.

本季稀釋後股票數量為 7,750 萬股，稀釋後每股收益為 0.93 美元，較上年增長 36%。

The significant increase in the diluted shares in the quarter was primarily related to the adoption of ASU 2016-09, improvements to employee share-based payments accounting.

本季稀釋後股份的大幅增加主要與採用 ASU 2016-09 以及員工股份支付會計的改善有關。

This guidance removed the excess tax benefit on share-based awards from the diluted share calculation, reducing the assumed shares to be repurchased under the treasury stock method.

該指引從稀釋股票計算中刪除了基於股票的獎勵的超額稅收優惠，減少了根據庫存股方法回購的假設股票。

This resulted in a one-off step function increase in our diluted share count of approximately 2 million shares.

這導致我們的稀釋後股票數量一次性增加約 200 萬股。

This increase in share count is recorded on a GAAP and non-GAAP basis and reduced our non-GAAP EPS for the quarter by approximately $0.02.

股票數量的增加是根據 GAAP 和非 GAAP 基礎記錄的，並使我們本季的非 GAAP 每股盈餘減少了約 0.02 美元。

Those of you focused on our GAAP financials will note that we recorded a GAAP income tax benefit of $9.2 million in the quarter.

那些關注我們 GAAP 財務數據的人會注意到，我們本季的 GAAP 所得稅收益為 920 萬美元。

The adoption of ASU 2016-09 also resulted in the recognition of excess tax benefit on share-based awards as a reduction to the GAAP provision for income taxes.

ASU 2016-09 的採用也導致承認以股份為基礎的獎勵的超額稅收優惠，作為 GAAP 所得稅撥備的減少。

This benefit, however, is excluded from the non-GAAP financials as it relates to stock-based compensation amounts.

然而，這項收益被排除在非公認會計準則財務數據之外，因為它與基於股票的薪資金額相關。

Legal expenses associated with the ongoing lawsuits came in at $11.5 million for the quarter, just below our outlook of $12 million on the last earnings call.

本季與正在進行的訴訟相關的法律費用為 1,150 萬美元，略低於我們上次財報電話會議上預期的 1,200 萬美元。

As a reminder, these expenses are excluded from the non-GAAP results discussed above.

提醒一下，這些費用不包括在上面討論的非公認會計準則績效中。

Now turning to the balance sheet.

現在轉向資產負債表。

Cash, cash equivalents and investments ended the quarter at approximately $1 billion.

本季末現金、現金等價物和投資約 10 億美元。

We generated $162.9 million of cash from operations in the March quarter.

我們在 3 月季度的營運中產生了 1.629 億美元的現金。

This reflects strong net income performance, combined with growth in product-related deferred revenue, offset by an increase in supply chain-related working capital.

這反映出強勁的淨利表現，以及與產品相關的遞延收入的成長，但被供應鏈相關營運資本的增加所抵銷。

DSOs came in at 56 days, down from 71 days in Q4.

DSO 的周期為 56 天，低於第四季的 71 天。

This improvement primarily reflects strong collections in the quarter.

這項改善主要反映了本季強勁的收款情況。

Inventory turns were 1.7x, down from 2.2 in Q4.

庫存週轉率為 1.7 倍，低於第四季的 2.2 倍。

Inventory increased to $286.8 million in the quarter, up from $236.5 million in the prior period.

本季庫存增加至 2.868 億美元，高於上一季的 2.365 億美元。

This reflects growth at both the raw material and finished goods level and is in line with our strategy of continuing to invest in supply chain-related working capital where appropriate.

這反映了原物料和製成品水準的成長，符合我們持續酌情投資供應鏈相關營運資金的策略。

In addition, consistent with last quarter, we maintained a further $39 million of inventory deposits recorded in other assets at the end of the quarter.

此外，與上季一致，我們在季度末也保留了其他資產中記錄的 3,900 萬美元的庫存存款。

You'd expect to see us continue to scale these working capital investments over the coming quarter.

您預計我們將在下個季度繼續擴大這些營運資本投資。

Our deferred revenue balance was $497.2 million, up from $372.9 million in Q4.

我們的遞延收入餘額為 4.972 億美元，高於第四季的 3.729 億美元。

This balance continues to be made of short- and long-term service contracts and product-related deferrals associated with acceptance terms and future deliverables.

這種平衡仍然由短期和長期服務合約以及與驗收條款和未來可交付成果相關的產品相關延期構成。

Accounts payable days were 45 days, down from 62 days in Q4, reflecting the timing of inventory receipts and payments.

應付帳款天數為 45 天，低於第四季的 62 天，反映了庫存收付的時間。

Capital expenditure for the quarter were $4 million.

該季度的資本支出為 400 萬美元。

Now turning to our outlook for the second quarter and beyond.

現在轉向我們對第二季及以後的展望。

We're pleased with our continued strong execution in the quarter with revenues earnings per share up more than 36% on a year-over-year basis.

我們對本季持續強勁的執行力感到滿意，每股盈餘較去年同期成長超過 36%。

The fundamentals of the business remain strong, and we are seeing broad-based demand for our products across the customer base.

業務基本面依然強勁，我們看到客戶群對我們產品的廣泛需求。

Operationally, we've continued to ramp volumes at our U.S. contract manufacturer and believe we now have the capacity to support the U.S. customer base from this site.

在營運方面，我們繼續增加美國合約製造商的產量，並相信我們現在有能力透過該網站支援美國客戶群。

In addition, we've worked to solidify our U.S. supply chain and while we believe that this will help ensure availability of supply, it would likely also result in a more consistent use of U.S.-based sourcing over the coming quarters.

此外，我們也努力鞏固我們的美國供應鏈，雖然我們相信這將有助於確保供應的可用性，但也可能導致在未來幾季更一致地使用美國採購。

With this as a backdrop, our guidance for the second quarter, which is based on non-GAAP results and excludes any noncash, stock-based compensation expenses and any legal expenses associated with the ongoing lawsuits, is as follows: revenues of approximately $354 million to $364 million; gross margin of approximately 61% to 64%; operating margin of approximately 28%.

以此為背景，我們對第二季的指導（基於非公認會計準則業績，不包括任何非現金、股票補償費用以及與正在進行的訴訟相關的任何法律費用）如下：收入約為 3.54 億美元至3.64 億美元；毛利率約61%至64%；營業利益率約28%。

Our effective tax rate is expected to be approximately 29% with diluted shares of approximately 78.3 million.

我們的有效稅率預計約為 29%，稀釋後股份約為 7,830 萬股。

Please note that based on our current outlook, we expect cost associated with the ongoing lawsuits to be approximately $12 million.

請注意，根據我們目前的展望，我們預計與正在進行的訴訟相關的成本約為 1200 萬美元。

Finally, we just received the commission's ruling in the '945 case.

最後，我們剛剛收到了委員會對「945」案的裁決。

Included in this ruling was the requirement that Arista establish a bond to cover the importation of sale of products and related subcomponents subject to the orders during the 2 months' presidential review period.

該裁決包括要求 Arista 建立保證金，以涵蓋在 2 個月的總統審查期間受命令約束的產品和相關子組件的進口銷售。

We currently believe that the maximum payment required under this provision will be approximately $10 million.

我們目前認為，該條款規定的最高付款額約為 1000 萬美元。

We intend to record this penalty as an operating expense in the GAAP income statement.

我們打算將這筆罰款記錄為 GAAP 損益表中的營運費用。

I will exclude it from our non-GAAP financial given its nonrecurring nature.

鑑於其非經常性性質，我將其排除在我們的非公認會計原則財務之外。

As a reminder, all of these lawsuit-related costs are excluded in the second quarter non-GAAP outlook that we provided above.

提醒一下，我們上面提供的第二季非公認會計準則展望中不包括所有這些訴訟相關成本。

I will now turn the call back to Charles.

我現在將把電話轉回給查爾斯。

Charles?

查爾斯？

Thank you, Ita.

謝謝你，伊塔。

We are now going to move to the Q&A portion of the Arista earnings call.

我們現在將進入 Arista 財報電話會議的問答部分。

(Operator Instructions)

（操作員說明）

We will now begin the Q&A portion of the Arista earnings call, which also includes Mark Taxay, Arista's Senior Vice President and General Council; and Mark Foss, Arista's Senior Vice President for Global Operations and Marketing.

我們現在將開始 Arista 財報電話會議的問答部分，其中還包括 Arista 高級副總裁兼總理事會 Mark Taxay；以及 Arista 全球營運和行銷資深副總裁 Mark Foss。

(Operator Instructions) Your first question comes from the line of Jess Lubert from Wells Fargo Securities.

（操作員說明）您的第一個問題來自富國銀行證券公司的 Jess Lubert。

I wanted to actually try and squeeze 2 in here.

我實際上想嘗試在這裡擠2個。

But first, just on the outlook, it appears your first half 2017 revenue has a chance to actually accelerate year-over-year.

但首先，就前景而言，您 2017 年上半年的收入似乎有機會實際同比加速。

So I guess, I just wanted to understand the breadth, the strength, to what degree there has been any pull-forward of business, if there is any reason to expect less than seasonal trends during the second half of the year?

所以我想，我只是想了解業務的廣度、強度和拉力程度，是否有任何理由預計下半年的趨勢會低於季節性趨勢？

And then the second question, I think we're likely to get a final determination in the '945 case tonight.

然後是第二個問題，我認為今晚我們很可能會對「945」案做出最終裁決。

So I just was hoping you could update us on where you are in the process of developing workarounds for the patents in that case and if they'll be submitted and embedded within EOS sometime soon?

所以我只是希望您能向我們通報您在這種情況下為專利開發解決方案的進展情況，以及它們是否會很快提交並嵌入到 EOS 中？

Jess, we'll try and answer one question, which one?

傑西，我們將嘗試回答一個問題，哪一個？

I guess just the business and the revenue outlook seasonality in the second half and hopefully someone else will follow up on the '945 case and the workaround.

我猜想只是下半年的業務和收入前景季節性，希望其他人能夠跟進 '945 案例和解決方法。

You gave them a question to ask.

你給了他們一個問題要問。

Appreciate it.

欣賞它。

Thank you.

謝謝。

We want to get through as many of them as possible.

我們希望盡可能多地解決這些問題。

So as Ita said, we're feeling very good both about the Q2 guidance we've given and, in general, our customers' acceptance of our products.

因此，正如 Ita 所說，我們對第二季度的指導以及客戶對我們產品的整體接受度都感覺非常好。

As I've often shared with you, visibility in the long-term is always hard with our cloud customers, but in general, their spending pattern continues and their investment in CapEx in the foreseeable future, I can't speak to Q4, but I think we can look into the summer and say the trends continue like we're seeing in Q1 and our guidance for Q2.

正如我經常與您分享的那樣，對我們的雲端客戶來說，長期可見性總是很困難，但總的來說，他們的支出模式仍在繼續，並且在可預見的未來他們對資本支出的投資，我無法談論第四季度，但我認為我們可以展望夏季，並說趨勢將繼續下去，就像我們在第一季和第二季的指導中看到的那樣。

I think, in general, what Arista is experiencing here, on one hand it's unique because we're such a strong supplier in cloud networking.

我認為，總的來說，Arista 在這裡經歷的事情，一方面是獨一無二的，因為我們是雲端網路領域如此強大的供應商。

On the other hand is also a strong reflection of our innovation and investment in our new products.

另一方面也強烈反映了我們對新產品的創新與投入。

And our new product uptick has been particularly strong.

我們的新產品成長尤其強勁。

It was strong in Q4 where it was more than 20% of our revenue, and it continues to be strong and stronger in Q1 as well and I expect that to continue in the second half too.

它在第四季度表現強勁，占我們收入的 20% 以上，在第一季也繼續強勁，我預計下半年也將繼續如此。

Your next question comes from the line of Jeff Kvaal from Nomura Instinet.

您的下一個問題來自 Nomura Instinet 的 Jeff Kvaal。

Let me follow up on Jess's question a bit.

讓我跟進一下傑西的問題。

And that is, could you perhaps seriously talk a little bit about the market segmentation?

也就是說，您能認真談談市場區隔嗎？

You have changed your terminology a little bit and then you talked about service provider this quarter.

您稍微改變了術語，然後在本季度談到了服務提供者。

Is that linked to the acceleration in revenues that you've been able to post over the last few quarters?

這是否與您在過去幾季發布的收入加速成長有關？

Sure.

當然。

If some of you who were with us at Analyst Day may recall, Arista has really now started talking about 5 verticals, not 4. There is the cloud titans, which tend to be our largest customers, who are deploying over 1 million servers.

如果參加分析師日活動的一些人可能還記得，Arista 現在確實開始談論 5 個垂直行業，而不是 4 個。雲端巨頭往往是我們最大的客戶，他們正在部署超過 100 萬台伺服器。

There is a new category of Tier 2, or cloud specialty providers who could emerge to be cloud titans in the future that are making heavy investments in the cloud space and expect to be public and perhaps hybrid cloud providers.

有一個新類別的第二層或雲端專業提供商，他們未來可能會成為雲端巨頭，他們正在雲端領域進行大量投資，並期望成為公有雲提供商，也許是混合雲提供商。

The service providers, which is really the classic definition of service providers, Tier 1, Tier 2, Tier 3. The financial services and the rest of enterprise that tends to be early adopters.

服務提供者，這實際上是服務提供者的經典定義，一級、二級、三級。金融服務和其他企業往往是早期採用者。

All 5 sectors generally contribute double-digit percentages to Arista's verticals.

所有 5 個行業通常為 Arista 的垂直行業貢獻了兩位數的百分比。

And Mark Foss, you want to add something more to that?

馬克·福斯（Mark Foss），你想補充一些嗎？

Sure.

當然。

We don't usually give out specific breakdowns of the 5 segments.

我們通常不會給出這 5 個部分的具體細分。

But we can rank them in terms of the order size for Q1.

但我們可以根據第一季的訂單大小對它們進行排名。

So in terms of size, the cloud titans was the #1 segment for Q1.

因此，就規模而言，雲端巨頭是第一季的第一部分。

#2 was the service provider segment.

#2 是服務提供者細分市場。

#3 was the cloud specialty provider segments.

#3 是雲端專業供應商細分市場。

#4 was the rest of enterprise.

#4 是企業的其餘部分。

And last but not least, the fifth one was the financial services vertical.

最後但並非最不重要的一點是，第五個是金融服務垂直領域。

Your next question comes from the line of Mark Moskowitz from Barclays.

你的下一個問題來自巴克萊銀行的馬克‧莫斯科維茲（Mark Moskowitz）。

This is Dan Gaide in for Mark.

這是馬克的丹蓋德。

So you just mentioned that -- or can you just talk about balancing the percent of component that you're going to be sourcing internationally and domestically?

所以你剛才提到了這一點——或者你能談談平衡你將在國際和國內採購的零件的百分比嗎？

And just how that kind of impacts gross margin guide?

這對毛利率指引有何影響？

Yes, Dan, I think very consistent with the dialogue that we've had over the last while.

是的，丹，我認為這與我們過去一段時間的對話非常一致。

We've got a gross margin range of 60 to 65, and we've always commented that in a world where we're using a balanced mix of components from the U.S. and from overseas that we would be in the middle of that range, right?

我們的毛利率範圍為 60 至 65，我們總是評論說，在我們平衡使用來自美國和海外的組件的世界中，我們將處於該範圍的中間，正確的？

So that lines up nicely with our guidance of 61% to 64%.

因此，這與我們 61% 至 64% 的指導非常吻合。

So I think nothing new or different from what we've been seeing on the gross margin front.

因此，我認為與我們在毛利率方面看到的情況沒有什麼新的或不同的。

We just see ourselves operating in that kind of balanced, mixed environment over the next coming quarters.

我們只是看到自己在接下來的幾個季度中將在這種平衡、混合的環境中運作。

Your next question comes from the line of Mark Kelleher from D.A. Davidson.

你的下一個問題來自 D.A. 的 Mark Kelleher。戴維森。

I'm going to follow up on that a little bit.

我將對此進行一些跟進。

Maybe you can give a little more puts and calls on your inventory during the quarter.

也許您可以在本季度對庫存增加一點看跌期權和看漲期權。

I know the window was closed for most of it.

我知道大部分時間窗口都是關閉的。

You were sourcing from overseas.

你是從海外採購的。

But previous quarter, you built a lot of inventory in the quarter.

但上個季度，您在該季度建立了大量庫存。

Should that -- should we expect a little bit lower on your gross margin range because of that inventory when the window was closed?

我們是否應該因為窗口關閉時的庫存而預期您的毛利率範圍會稍微低一些？

And what are you expecting going forward?

您對未來有何期待？

Are you still going to source that currently?

您目前還打算採購嗎？

Yes, I mean, I think it still comes back to that concept of having a mixed balance of sourcing from U.S. component drivers and then some components that will come out of inventory, right?

是的，我的意思是，我認為這仍然回到了從美國零件驅動商採購以及一些庫存不足的零件之間實現混合平衡的概念，對嗎？

So we very consciously put the infrastructure in place that we have U.S -- manufacturing U.S. sourcing, and we're going to be leveraging that plus any inventory that we have.

因此，我們非常有意識地建立了我們在美國的基礎設施——美國製造採購，我們將利用它以及我們擁有的任何庫存。

So I think nothing new, nothing different here.

所以我認為這裡沒有什麼新意，也沒有什麼不同。

So the window opening and closing doesn't matter really to you?

那麼窗戶的開啟和關閉對您來說並不重要嗎？

I mean, obviously, at this point, you can see the inventory that we have, and we'll continue to leverage that.

我的意思是，顯然，此時您可以看到我們擁有的庫存，我們將繼續利用它。

Your next question comes from the line of Steve Milunovich from UBS.

您的下一個問題來自瑞銀集團的史蒂夫·米盧諾維奇（Steve Milunovich）。

Could you comment on your Microsoft business in terms of either growth this quarter or growth you expect for the year?

您能否從本季的成長或您對今年的預期成長方面評價一下您的微軟業務？

HP lost their server business there.

惠普在那裡失去了伺服器業務。

And one potential read is that Microsoft is just slowing their procurement, generally speaking.

一個可能的解讀是，整體而言，微軟只是放慢了採購速度。

Are you seeing any of that?

你看到這些了嗎？

Steve, Microsoft, as a customer, continues to be one of our top customers.

史蒂夫，微軟，作為客戶，仍然是我們的頂級客戶之一。

Their business with us is strong.

他們與我們的業務很強勁。

As I've always commented, it would be difficult to expect them to be the same customer concentration as they were last year, which was, I think, 16%.

正如我一直評論的那樣，很難期望他們的客戶集中度與去年相同，我認為去年是 16%。

But a good guess is they will be in the 10% to 16% range this year.

但一個不錯的猜測是，今年的比例將在 10% 到 16% 之間。

Your next question comes from the line of Simon Leopold from Raymond James.

您的下一個問題來自雷蒙德詹姆斯 (Raymond James) 的西蒙利奧波德 (Simon Leopold)。

This is Victor Chiu in for Simon.

這是 Victor Chiu 飾演 Simon。

I wanted to ask you about any -- some potential shifts possibly in the competitive landscape because Juniper has reported several quarters in a row now of double-digit switching growth and then just recently they started breaking out the contributions from their cloud customers and then in that vertical kind of implying that they're making progress there and that's starting to become a more important vertical for them.

我想問您有關競爭格局中可能出現的一些潛在變化的問題，因為瞻博網路已經連續幾個季度報告了兩位數的轉換成長，然後就在最近，他們開始公佈雲端客戶的貢獻，然後在這種垂直暗示著他們正在那裡取得進展，並且開始成為對他們來說更重要的垂直。

So I just want to ask if you've seen them more so than you have in the past.

所以我只想問你是否比過去更頻繁地看到它們。

And then maybe just quickly, vice versa, how your progress is with your routing platform?

然後也許很快，反之亦然，您的路由平台進展如何？

No, they're both good questions.

不，它們都是好問題。

Thank you, Victor.

謝謝你，維克多。

We do not see any dramatic change in competitive pressures.

我們沒有看到競爭壓力有任何巨大變化。

Our dominant competitor continues to be Cisco.

我們的主要競爭對手仍然是思科。

We do see Juniper in the service provider sector specifically when we are competing in routing.

我們確實在服務供應商領域看到了瞻博網絡，特別是當我們在路由領域競爭時。

As you know, they are quite strong there.

如你所知，他們在那裡非常強大。

But no major change there, except our entry into routing has, therefore, made Juniper more visible for us in routing.

但那裡沒有重大變化，除了我們進入路由領域，因此，瞻博網路在路由領域對我們來說更加明顯。

Your next question comes from the line of Hendi Susanto from Gabelli & Company.

您的下一個問題來自 Gabelli & Company 的 Hendi Susanto。

Jayshree, HP is planning to shift away from its core legacy network products to selling Arista.

Jayshree，惠普計劃從其核心傳統網路產品轉向銷售 Arista。

Would you be able to share what our expectations should be on that partnership?

您能分享一下我們對這種夥伴關係的期望嗎？

And whether or not it has fully ramp up at the moment?

目前是否已經完全上升？

Well, thank you, Hendi.

嗯，謝謝你，亨迪。

As I said before, we have very strong executive involvement from both the CEO of HP, Meg, and the Executive Vice President, Antonio.

正如我之前所說，惠普執行長梅格 (Meg) 和執行副總裁安東尼奧 (Antonio) 都非常積極地參與了我們的管理工作。

And mutual commitment to the partnership continues to be strong.

對夥伴關係的共同承諾依然堅定。

But I think both companies would like to see more progress here and are still in the very early stages of this engagement.

但我認為兩家公司都希望在這裡看到更多進展，並且仍處於合作的早期階段。

As I've always said, I expect to see better results in the second half of 2017 and '18.

正如我一直說的，我期望在 2017 年下半年和 18 年看到更好的結果。

And both teams are working hard to streamline the training, the process, the channels and the customer reach.

兩個團隊都在努力簡化培訓、流程、管道和客戶覆蓋範圍。

So we're doing a lot of work.

所以我們正在做很多工作。

But the real results of this will be more apparent in 2017 and '18.

但真正的結果將在 2017 年和 18 年更加明顯。

Your next question comes from the line of Vijay Bhagavath from Deutsche Bank.

您的下一個問題來自德意志銀行的 Vijay Bhagavath。

Jayshree, Ita, my question is on the 7500R, the routing portfolio.

Jayshree、Ita，我的問題是關於 7500R 的路由產品組合。

We've heard you have over 100 customers for the 7500R.

我們聽說您有 100 多個客戶購買 7500R。

So it'd be very helpful to know are there any specific use cases in routing or in customer segments in cloud that this product is seeing demand?

因此，了解該產品在路由或雲端中的客戶群中是否有任何特定的用例需求會非常有幫助？

And roughly what percentage of those 100-plus customers are in product acceleration mode versus in more in field trials?

這 100 多家客戶中處於產品加速模式的客戶與更多處於現場試驗的客戶的比例大致是多少？

Thanks, Vijay.

謝謝，維傑。

I expect to see 100 routing customers by this summer.

我預計到今年夏天將看到 100 個路由客戶。

So we're picking very good progress.

所以我們取得了非常好的進展。

To that, I would say, we are over north of 70% of that goal.

對此，我想說，我們已經超過了目標的 70%。

This is both the 7500R series as well as the 7280R.

這既是 7500R 系列，也是 7280R。

So both products, and it's generally reclassified with the FlexRoute license.

因此，這兩種產品通常都會使用 FlexRoute 授權進行重新分類。

In terms of use cases, I think the biggest difference here is Arista is not a legacy router company.

就用例而言，我認為最大的區別是 Arista 不是一家傳統路由器公司。

And what we're seeing is a lot of routing capabilities where most service providers are transforming from traditional traffic engineered routers to resemble more the cloud.

我們看到的是許多路由功能，大多數服務供應商正在從傳統的流量工程路由器轉變為更像雲端。

So the cloud network aggregation and core for both Ethernet and IP is changing dramatically, especially with the migration in their backbones and migration to mobile 5G as well as we are seeing a lot of content delivery networks and peering use cases.

因此，乙太網路和 IP 的雲端網路聚合和核心正在發生巨大變化，特別是隨著骨幹網路的遷移和向行動 5G 的遷移，以及我們看到大量的內容交付網路和對等用例。

So I would say, the new norm for SP networks is cloud networking and that's where Arista is particularly shining and is bringing out its cloud heritage for routing.

所以我想說，SP 網路的新規範是雲端網絡，這就是 Arista 特別閃耀的地方，並且正在發揮其雲端路由的傳統。

Your next question comes from the line of Paul Silverstein from Cowen and Company.

您的下一個問題來自 Cowen and Company 的 Paul Silverstein。

This is Fahad in for Paul.

這是保羅的法赫德。

One quick question on, your deferred revenue is up very nicely.

一個簡單的問題是，您的遞延收入成長得非常好。

Can you help us understand what's going on there?

你能幫助我們了解那裡發生了什麼事嗎？

And then a bigger, broader question for you, Jayshree.

然後還有一個更大、更廣泛的問題要問你，Jayshree。

From here on, what are the greatest opportunities you see from here?

從現在開始，您看到的最大機會是什麼？

And what are the biggest risks?

最大的風險是什麼？

Yes, I'll take the deferred revenue one quickly first.

是的，我會先快速取得遞延收入。

I mean, the growth you are seeing is partly just growth in services, renewables based on the installed base, right?

我的意思是，您看到的成長部分只是基於安裝基礎的服務和再生能源的成長，對吧？

And then we did see some increase also in product deferred.

然後我們確實看到延期產品也有所增加。

And again, that's purely driven by the timing of shipments where we have acceptances or features that we need to deliver in the future.

再說一次，這純粹是由發貨時間驅動的，我們已經接受或需要在未來交付功能。

So again, nothing unusual there.

再說一次，那裡沒有什麼不尋常的。

It's just kind of the normal ebb and flow of the business that happens to result in that growth in this quarter.

這只是業務的正常潮起潮落，恰好導致了本季的成長。

Jayshree, do you want to take that?

Jayshree，你想接受這個嗎？

No, I think you answered the question well.

不，我認為你很好地回答了這個問題。

Thanks.

謝謝。

You next question comes from the line of Simona Jankowski from Goldman Sachs.

您的下一個問題來自高盛的西蒙娜·揚科斯基（Simona Jankowski）。

I just wanted to follow up.

我只是想跟進。

I think, Ita, I heard you mention that you just received the '945 ruling.

我想，Ita，我聽到你提到你剛剛收到了 945 裁決。

Other than the up to $10 million bond, can you just tell us a little more about what was in the ruling?

除了高達 1000 萬美元的保證金之外，您能告訴我們更多關於裁決中的內容嗎？

Mark, do you want to take that?

馬克，你想接受這個嗎？

Sure, happy to take that one.

當然，很高興接受那個。

So we -- as Ita said, we did just receive the product termination notice.

因此，正如 Ita 所說，我們確實剛剛收到了產品終止通知。

We actually haven't received the written opinion yet.

我們實際上還沒有收到書面意見。

We're going to get that tomorrow.

我們明天就會拿到。

So we'll know more once we actually get the opinion.

因此，一旦我們真正得到意見，我們就會了解更多。

But what we know today is that the ITC found that we infringed 2 out of the 6 patents that were asserted in that case.

但我們今天知道的是，ITC 發現我們侵犯了該案所主張的 6 項專利中的 2 項。

One is the 668 patent and the other is the 577 patent.

一個是668專利，另一個是577專利。

We obviously were very glad that the commission sided with us on 4 out of the 6, but disappointed about the other 2. As Ita also said, there was a 5% bond that was stated in there.

顯然，我們很高興委員會在 6 項中的 4 項中站在了我們一邊，但對另外 2 項感到失望。正如 Ita 所說，其中註明了 5% 的債券。

I think we explained that.

我想我們已經解釋過了。

And at this stage, we really just need to take a look through the decision and see how it impacts our go-forward strategy.

在這個階段，我們真的只需要仔細看看這個決定，看看它如何影響我們的前進策略。

Your next question comes from the line of James Faucette from Morgan Stanley.

您的下一個問題來自摩根士丹利的 James Faucette。

I wanted to ask about the opportunity with that cloud titans.

我想詢問一下與雲端巨頭合作的機會。

Jayshree, you've talked about -- should expect Microsoft maybe to come down a little bit, at least for the percentage of revenue.

Jayshree，你談過——應該預期微軟可能會下降一點，至少在收入百分比方面是如此。

How do you see your opportunity set more broadly and over the long run there?

從長遠來看，您如何看待您在那裡的更廣泛的機會？

Do you feel like containerized EOS opens up a lot of incremental opportunity within the cloud titans?

您是否認為容器化 EOS 為雲端巨頭帶來了許多增量機會？

And I guess, over the medium to long run, do you think the cloud titans will remain kind of your biggest market vertical?

我想，從中長期來看，您認為雲端巨頭仍將是您最大的垂直市場嗎？

Or is there a plan which you think that others can overtake it?

或是有沒有一個你認為別人可以超越的計劃？

Sure.

當然。

Thanks, James.

謝謝，詹姆斯。

I think the cloud titans will always remain as big vertical.

我認為雲端巨頭將永遠保持垂直產業的地位。

Whether it will be the biggest or not will depend on how the other verticals perform in the cloud space.

它是否會成為最大的將取決於其他垂直行業在雲端空間中的表現。

Yes, there is no doubt in anyone's mind that workloads are moving to the cloud and companies like Amazon, Azure, Google Platforms, I know I can list them all out for you, are doing very, very well, but so are the next tiers.

是的，毫無疑問，任何人都認為工作負載正在轉移到雲端，而像亞馬遜、Azure、谷歌平台這樣的公司，我知道我可以為你列出所有這些，它們都做得非常非常好，但下一層也是如此。

So I think there will be many consumption models in the cloud.

所以我認為雲端上會有很多消費模式。

And many customers of ours will be successful depending on the vertical stack or offerings they have.

我們的許多客戶將獲得成功，這取決於他們擁有的垂直堆疊或產品。

There may be different shapes and forms of clouds.

雲可能有不同的形狀和形式。

So that brings me to your real question -- the heart of your question is, what about containerized EOS.

這讓我想到了你真正的問題——你問題的核心是，容器化的 EOS 怎麼樣。

Today, it's really an architecture and a technology for a handful of very sophisticated customers.

如今，它實際上是為少數非常成熟的客戶提供的架構和技術。

These customers basically will be looking for different consumption models and to take an example like I have often shared on Microsoft, they have several tiers of leaf and several tiers of spine, and they may use our containerized EOS in some use cases and applications to the leaf, but they may choose to keep the spine highly, no pun intended, self-contained and well defined as it is now.

這些客戶基本上會尋找不同的消費模式，並舉一個我經常在微軟分享的例子，他們有幾層葉子和幾層脊柱，他們可能會在某些用例和應用程式中使用我們的容器化EOS葉子，但他們可能會選擇保持脊椎高度，沒有雙關語意圖，獨立且清晰，就像現在一樣。

So we don't expect massive shifts to containerized EOS in the near term, but we do expect containerized EOS to be an important consumption and packaging model for our cloud customers and sophisticated developers.

因此，我們預計短期內不會大規模轉向容器化 EOS，但我們確實預期容器化 EOS 將成為我們的雲端客戶和經驗豐富的開發人員的重要消費和打包模型。

Your next question comes from the line of Rod Hall from JPMorgan.

您的下一個問題來自摩根大通的 Rod Hall。

Just wanted to follow up, again, on the '945 ruling, the 668 and 577 patents.

只是想再次跟進 '945 裁決、668 和 577 專利。

Can you guys comment on workarounds and just time line on that?

你們能評論一下解決方法和時間軸嗎？

Or should we be expecting the time line to kind of flow the same way the '944 did?

或者我們應該期待時間線會像“944”那樣流動？

And is there a possibility this all is done by the end of this year?

這一切有可能在今年底前完成嗎？

Thanks, Rod.

謝謝，羅德。

I'll let Mark answer it, but I think we're -- having been through this experience ones with '944, we are more comfortable and familiar with the process as well as you are, right?

我會讓馬克回答這個問題，但我認為我們 - 經歷過 944 的這段經歷，我們和你一樣對這個過程更加舒適和熟悉，對吧？

So I think it will be very similar.

所以我認為它會非常相似。

We fully expect to have software and possibly hardware workarounds depending on the details once we read the patent.

一旦我們閱讀了專利，我們完全希望能夠根據詳細資訊找到軟體和可能的硬體解決方法。

And it will be a process that tends to take 6 to 12 months.

這個過程往往需要 6 到 12 個月的時間。

Is that about right, Mark?

馬克，這樣說對嗎？

6 to 12 months.

6至12個月。

I think that's all we know for now until we read more closely, so more as we know more.

我想這就是我們現在所知道的一切，直到我們更仔細地閱讀，所以我們知道的越多。

Your next question comes from the line of Kulbinder Garcha from Crédit Suisse.

您的下一個問題來自瑞士信貸銀行的 Kulbinder Garcha。

Jayshree, the question on your cloud titans business.

Jayshree，關於您的雲端巨頭業務的問題。

When I looked at it based upon the charts you gave at the Analyst Meeting, it looks like the next 5 customers, whoever they are, are probably collectively still smaller than Microsoft.

當我根據您在分析師會議上提供的圖表進行查看時，看起來接下來的 5 位客戶，無論他們是誰，加起來可能仍小於 Microsoft。

And just looking at that, you had business with them all, dealings with them, I think, for 3 or 4 years.

看看這一點，我想，你與他們所有人都有業務往來，與他們打交道，已經有三、四年了。

So how's that lack of penetration relative to Microsoft being, it just takes this long and is the opportunity ahead of you?

那麼，相對於微軟來說​​，滲透率的缺乏是怎麼樣的呢？它只花了這麼長時間，機會就在你面前嗎？

Or is the footprint and the opportunity there just a little bit smaller than maybe we all thought a few years ago?

或者那裡的足跡和機會是否比我們幾年前想像的要小一點？

Just any commentary around the cloud titans.

只是任何有關雲巨頭的評論。

Would you expect it, for example, this year to grow faster than your overall company average?

例如，您預計今年的成長速度會高於公司整體平均嗎？

Okay.

好的。

Thanks, Kulbinder.

謝謝，庫爾賓德。

I will try and process your question.

我會嘗試處理你的問題。

There were multiple subplots in that question.

該問題中有多個次要情節。

First of all, the cloud titans are healthy.

首先，雲泰坦是健康的。

They are doing well, and I think they will continue to do well.

他們做得很好，我認為他們會繼續做得很好。

Many of these cloud titans we've now worked with an average of 3 to 5 years.

我們現在與其中許多雲端巨頭平均合作了 3 到 5 年。

So they know us.

所以他們了解我們。

We're intimate with them.

我們和他們很親密。

They've operationalized us.

他們已經讓我們開始運作了。

The cloud specialty providers and the service providers, both those are new categories who could potentially spend like the cloud titans, but we're anywhere from our first year to third year with them.

雲端專業供應商和服務供應商都是新類別，可能會像雲端巨頭一樣花錢，但我們從第一年到第三年都與他們合作。

So we -- Arista are much newer to them and they to us.

所以我們——Arista 對他們來說是新的，他們對我們來說也是新的。

So depending on their success and where they're trying to be successful, I think they could be very large customers for us, perhaps even as large as some of the cloud titans, but they just aren't as far enough along with us or we with them.

因此，根據他們的成功以及他們試圖取得成功的領域，我認為他們可能會成為我們的非常大的客戶，甚至可能與一些雲端巨頭一樣大，但他們與我們的關係還不夠遠，或者我們和他們在一起。

So I think (inaudible).

所以我認為（聽不清楚）。

I guess, Jayshree, my point is that just in the cloud titans, not in the other specialty providers, just in the cloud titans, Microsoft, you've done very well with.

我想，Jayshree，我的觀點是，只是在雲端巨頭中，而不是在其他專業提供者中，只是在雲端巨頭中，微軟，你做得很好。

All of the rest of them, the 5 or so customers are in there, I guess, aren't as big as the Microsoft business yet, despite you having business with those 5 customers for a number of years.

我想，其餘的所有客戶（大約 5 個客戶）還沒有 Microsoft 業務那麼大，儘管您與這 5 個客戶有業務往來多年。

So I am talking about that specific opportunity, has that taken longer to penetrate than you thought?

所以我說的是那個特定的機會，它的滲透時間是否比你想像的還要長？

Yes.

是的。

No, so several -- so I'll leave it at this.

不，這麼多——所以我就到此為止。

Several of them are in our top 10 customers.

其中有幾位是我們的前 10 位客戶。

So they're doing quite well for us.

所以他們對我們來說做得很好。

But it is fair to say that of all the cloud titans, Microsoft is doing better than any of the others for us and perhaps even in the industry, they and Amazon lead everyone.

但可以公平地說，在所有雲端巨頭中，微軟為我們做得比其他公司都要好，甚至在產業中，他們和亞馬遜都領先。

So I think you're just seeing the reflection of the industry trends on Arista customer trend.

所以我認為您只是看到行業趨勢在 Arista 客戶趨勢上的反映。

Your next question comes from the line of Stanley Kovler from Citi Research.

您的下一個問題來自花旗研究部的 Stanley Kovler。

I just wanted to ask a question about linearity.

我只是想問一個關於線性的問題。

And in the first half of the year, it seems like you are benefiting from a little bit of pent-up demand in your lead times have come in now with the backdrop of Q2.

今年上半年，您似乎受益於一些被壓抑的需求，在第二季的背景下，您的交貨時間已經到來。

As we think about the rest of the year, there are going to be other demands for some of your customers as they begin to potentially shift spending to servers and those product cycles.

當我們考慮今年剩餘時間時，您的一些客戶將會有其他需求，因為他們開始可能將支出轉移到伺服器和這些產品週期。

Can you help us understand the ebb and flow of spending in the data center that you expect to impact between the server storage and networking as we get through the year with some of the competing product cycles they have the funds for?

您能否幫助我們了解資料中心支出的潮起潮落，您預計這些支出會對伺服器儲存和網路之間的影響產生影響，因為我們已經度過了他們有資金支持的一些競爭產品週期？

Sure, Stanley.

當然，史丹利。

First of all, we probably don't see the ebb and flows you're describing between server storage as a purchase segment versus networking.

首先，我們可能看不到您所描述的伺服器儲存作為購買部分與網路之間的潮起潮落。

At any given time, the networking component of our total data center is 10% to 15%, so the server and the storage is significantly higher, right.

在任何給定時間，我們整個資料中心的網路元件都佔 10% 到 15%，因此伺服器和儲存明顯更高，對吧。

So we tend to have networking operational experts who plan the networking piece.

因此，我們傾向於聘請網路營運專家來規劃網路部分。

In terms of -- so therefore how it ties into ebbs and flows, the server and the storage spend usually occurs at or before the network comes in.

就其與潮起潮落的關係而言，伺服器和儲存支出通常發生在網路存取時或之前。

That's how we've really seen it, and therefore, the tie is more loosely coupled than you are stating.

這就是我們真正看到的方式，因此，這種聯繫比您所說的更鬆散。

In terms of lead times, our lead times have become very predictable right now.

就交貨時間而言，我們的交貨時間現在變得非常可預測。

So customers are able to plan better, and certainly, they work with us on anything they need in the next and the forthcoming quarter.

因此，客戶能夠更好地計劃，當然，他們會與我們合作解決下一個和即將到來的季度所需的任何事情。

But anything beyond 60 weeks is difficult for us to get visibility from them on and also for their planning.

但超過 60 週後，我們就很難了解他們的狀況以及他們的計畫。

They have to plan on that since some of our lead time components are that far out.

他們必須對此進行計劃，因為我們的一些組件的交貨時間已經太遠了。

So I'd say 1 or 2 quarters and generally 16 weeks is a good boundary condition for how they plan.

所以我想說 1 或 2 個季度，通常是 16 週是他們計劃的一個很好的邊界條件。

Your next question comes from the line of Erik Suppiger from JMP Securities.

您的下一個問題來自 JMP 證券公司的 Erik Suppiger。

Can you comment on the DANZ product?

您能評論一下 DANZ 產品嗎？

Did you see that gain momentum in the quarter?

您是否看到本季的成長動能？

And you said that your advantage is 10x to 60x.

而且你說你的優勢是10倍到60倍。

Is that based on a cost advantage you can provide the customer?

這是基於您可以為客戶提供的成本優勢嗎？

Or can you discuss that in a little detail?

或者能詳細討論一下嗎？

Sure.

當然。

Yes.

是的。

So we introduced DANZ in February and it's based on our new products, the 7280R, the 7500R as well as the ongoing support we've had on DANZ with 7150.

因此，我們在 2 月推出了 DANZ，它基於我們的新產品 7280R、7500R 以及我們對 DANZ 7150 的持續支持。

The reception has been very good.

接待情況非常好。

It's only been a quarter since we introduced the new features.

距離我們推出新功能才過了四分之一的時間。

But I will tell you, similar to routing, I expect to see 100 new customers in the first year of DANZ.

但我會告訴你，與路由類似，我預計 DANZ 第一年會看到 100 個新客戶。

However, the size of these deals vary depending on how much monitoring functionality they need in a small use case versus cap aggregation at 100 gigabit Ethernet-type of capabilities in a larger scale use case.

然而，這些交易的規模有所不同，具體取決於小型用例中需要多少監控功能，以及大規模用例中 100 GB 乙太網路類型功能的上限聚合。

So we are seeing both.

所以我們兩個都看到了。

So in terms of competitive advantages, we're not trying to build a cap aggregation as a sole monitoring product.

因此，就競爭優勢而言，我們並不試圖將上限聚合建構成唯一的監控產品。

Our emphasis is clearly hypodensity, the ability to run in switching mode in parallel so that customers can mix and match switching and DANZ in a common chassis and routing in some cases as well as the footprint and power and price cost capabilities.

我們的重點顯然是低密度，即在交換模式下並行運行的能力，以便客戶可以在通用機箱中混合和匹配交換和DANZ，在某些情況下還可以進行路由，以及佔用空間、功耗和價格成本能力。

So all of that is factoring into the 10 to 60x depending on which metric I'm looking at.

因此，所有這些都將計入 10 到 60 倍，具體取決於我所關注的指標。

The customers are very pleased with our sort of system-wide focus of not just how do we do DANZ, but how do we do DANZ with all these fine networking portfolio.

客戶對我們的全系統關注點非常滿意，不僅關注我們如何做 DANZ，還關注我們如何利用所有這些優秀的網絡產品組合來做 DANZ。

Your next question comes from the line of Ittai Kidron from Oppenheimer.

您的下一個問題來自奧本海默的 Ittai Kidron。

A clarification and a question for me.

向我澄清並提出問題。

The clarification, when you say 20% from new products you just mentioned, what those new products you include in that category?

澄清一下，當你說 20% 來自你剛才提到的新產品時，你在該類別中包含哪些新產品？

And then the question, Ita, I mean your short-term deferred has doubled in 2 quarters, doubled.

然後是問題，伊塔，我的意思是你的短期遞延在兩個季度內翻了一番，翻了一番。

It's a little bit hard to think how growth in services contracts can really make up for that big of a jump.

很難想像服務合約的成長如何真正彌補這一巨大的飛躍。

So clearly a lot of customers or very few customers are putting a lot of money upfront with you.

很明顯，很多客戶或很少客戶會向您預付大量資金。

Is there any color you can give us that helps us profile those customers or the type of the use cases or the products for which these orders are going forward?

您可以提供我們任何顏色來幫助我們描述這些客戶或使用案例的類型或這些訂單所針對的產品嗎？

Is there any way you could give us some color on what's been built up there?

您有什麼辦法可以讓我們了解那裡已經建立的東西嗎？

That would be great.

那太好了。

Yes.

是的。

I mean, Ittai, clearly, the services is a piece of it, right?

我的意思是，Ittai，顯然，服務是其中的一部分，對吧？

I mean, we have seen the product deferred grow.

我的意思是，我們已經看到產品延遲成長。

Some of it is linked to the new products and just an increase in the number of customers who have some acceptance terms around those new products, right?

其中一些與新產品有關，只是對這些新產品有一些接受條款的客戶數量的增加，對嗎？

And the rest of it really is timing and timing of shipments in the quarter, right?

其餘的確實是本季的發貨時間和時間，對吧？

If you look at the mix of customers in that group, it's across the customer base.

如果您查看該群組中的客戶組合，您會發現它遍布整個客戶群。

So there is nothing particular to any one of the verticals that Mark and Jayshree talked about earlier.

因此，Mark 和 Jayshree 之前談到的任何一個垂直領域都沒有什麼特別之處。

I mean, really it's more tactical and in a lot of cases in terms of new products have an acceptance clause and then depending on when you ship, that determines kind of what that balance is, right?

我的意思是，實際上這更具戰術性，在許多情況下，新產品都有接受條款，然後取決於您發貨的時間，這決定了平衡是什麼，對嗎？

So the balance is cycling as you go quarter-to-quarter, and it really is just a question of what we ship and how do we ship in the quarter and how much of it ends up going to those customers and ending up in the deferred.

因此，平衡隨著季度的變化而循環，這實際上只是我們在本季度發貨什麼、如何發貨以及其中有多少最終流向這些客戶並最終進入遞延的問題。 。

So I still encourage everybody to think about it more as a tactical balance as opposed to something that's some kind of strategically reflecting from shift at this point.

因此，我仍然鼓勵大家更多地將其視為一種戰術平衡，而不是此時的轉變所反映的某種戰略。

Okay.

好的。

And what is that included in the category of new products?

新產品類別包含哪些內容？

Oh...

哦...

The R-Series.

R 系列。

The R-Series (inaudible).

R 系列（聽不清楚）。

The R-Series, the 7280R and the 7500R is the primary one.

R 系列、7280R 和 7500R 是主要產品。

It isn't often you get to say congrats to ladies only?

您不是常常只向女士表示祝賀嗎？

Your next question comes from the line of Jason Ader from William Blair.

您的下一個問題來自威廉布萊爾 (William Blair) 的傑森阿德 (Jason Ader)。

Just wanted to follow up on the deferred revenues.

只是想跟進遞延收入。

Ittai asked about the job that you've had.

Ittai詢問了你所從事的工作。

What should we expect in the second half for deferred revenues after the strength that you've seen over last couple of quarters?

在經歷了過去幾季的強勁表現之後，我們對下半年的遞延收入有何預期？

Should we expect the deferred revenue balance to continue to grow at the same rate?

我們是否應該預期遞延收入餘額會繼續以同樣的速度成長？

I'm not going to try to guide the deferred revenue balance, right?

我不會嘗試引導遞延收入餘額，對吧？

It's tough enough to kind of guide the revenue.

引導收入已經夠困難了。

I think as we see some of the new products become more mature except when we may see some decline on that.

我認為，隨著我們看到一些新產品變得更加成熟，除非我們可能會看到一些下降。

But again, in context of our -- at least on our current guidance, we're not factoring that in, right?

但同樣，在我們的背景下——至少在我們目前的指導下，我們沒有考慮到這一點，對嗎？

So I know it's interesting and intriguing, but really it is more tactical in terms of what's in that balance.

所以我知道這很有趣，但實際上就平衡而言，它更具戰術性。

So we will move around, and again, I wouldn't read too much into it.

所以我們會四處走動，再說一遍，我不會對此進行太多解讀。

Your next question comes from the line of Aaron Rakers from Stifel.

您的下一個問題來自 Stifel 的 Aaron Rakers。

I hate to do this, but I'm going to go back to the deferred discussion.

我不想這樣做，但我要回到推遲的討論。

I think as we look forward, you see the short-term deferred build so much.

我認為，當我們展望未來時，你會看到短期推遲建設的情況如此之多。

I'm curious of how you think the contribution of your total services revenue will grow relative to total revenue over time?

我很好奇您認為隨著時間的推移，您的總服務收入相對於總收入的貢獻將如何成長？

And then also more importantly, where do you think the gross margin of the services business could go?

更重要的是，您認為服務業務的毛利率會走向何方？

Yes, I mean...

是的，我的意思是...

Go ahead.

前進。

Yes, I think the services revenue has been growing as a percentage of total revenue over time at a nice, steady growth rate, right?

是的，我認為隨著時間的推移，服務收入佔總收入的百分比一直在以良好、穩定的速度增長，對吧？

We've seen it go kind of from 11 to 12 to 13.

我們看到它從 11 到 12 再到 13。

And I think it can continue to do that.

我認為它可以繼續這樣做。

But it's going to be at that steady pace.

但它會以穩定的速度進行。

I mean, what's your entitlement?

我的意思是，你有什麼權利？

Could it be as much as 15% just from pure services?

僅靠純服務就能達到15%嗎？

Maybe but that will take time, right?

也許吧，但這需要時間，對嗎？

The growth, the margins on the services side, it's a little chunky in that the cost structure tends to be fixed and going in blocks.

服務方面的成長和利潤率有點大，因為成本結構往往是固定的，而且是分批進行的。

But it's probably -- right now, it's probably operating as high as we would expect to see it operate and then -- but you could see some chunkiness in the gross margin if we have to put in a new piece of infrastructure to support something.

但它可能——現在，它的運行速度可能與我們預期的運行速度一樣高——但如果我們必須投入新的基礎設施來支援某些東西，你可能會看到毛利率有些低。

And you guys don't quantify the product deferred, is that correct?

你們沒有量化延期的產品，對嗎？

We don't split it out, I mean...

我們不分開，我的意思是...

We split it into long-term and short-term.

我們把它分為長期和短期。

Long-term and short-term, but we don't break it out between services and (inaudible).

長期和短期，但我們不會在服務和（聽不清楚）之間進行區分。

Your next question comes from the line of Alex Kurtz from Pacific Crest.

您的下一個問題來自 Pacific Crest 的 Alex Kurtz。

Just on the '945 results.

就在'945的結果上。

I was wondering if you could give us a quick refresher on the PTAB process, the review of the 577 patent and sort of the timing of that.

我想知道您能否讓我們快速回顧一下 PTAB 流程、577 專利的審查以及相關的時間表。

And what the strategy could be now that you've learned the fate of the '945 patents?

既然您已經了解了 '945 專利的命運，那麼該策略可能是什麼？

Sure.

當然。

So yes, there are 2 IPRs that have been instituted on the 668 and the 577 patents, which were the patents that were found to infringe in the '945.

所以，是的，已經針對 668 和 577 專利制定了 2 個智慧財產權，這些專利是在 945 中被發現侵犯的專利。

There were hearings that were held at the PTAB in March and the final decisions by the PTAB will be issued by June 11.

PTAB 於 3 月舉行了聽證會，PTAB 的最終決定將於 6 月 11 日發布。

So from a timing standpoint, as you probably know, there is a 60-day review period -- presidential review period following the issuance of the final determination of the ITC.

因此，從時間的角度來看，正如您可能知道的那樣，在 ITC 發布最終裁決之後，有一個 60 天的審查期——總統審查期。

So that should come out to July 3, so the PTAB decisions will come out several weeks before that.

因此，該結果應該會在 7 月 3 日公佈，因此 PTAB 的決定將在此之前幾週內公佈。

At this stage, obviously, we've been evaluating, as I said a moment ago, our design around strategy.

顯然，在這個階段，正如我剛才所說，我們一直在評估我們圍繞戰略的設計。

We're obviously preparing that strategy in the event that we were to lose the IPRs.

顯然，我們正在準備這項策略，以防萬一我們失去智慧財產權。

And as I said, we just received the final determination, so we have to go through the actual written opinion to see how that flows through, but certainly, our plan would be based upon our review of that.

正如我所說，我們剛剛收到最終決定，因此我們必須仔細閱讀實際的書面意見，看看其如何落實，但當然，我們的計劃將基於我們對此的審查。

We have several different options that we're evaluating and we'll have something together before the end of presidential review period.

我們正在評估幾種不同的選擇，我們將在總統審查期結束之前做出一些決定。

And Mark, is there an appeals process to the IPRs or is it just that's sort of the final decision when that comes out and there is no kind of follow-on to that process?

馬克，是否有針對知識產權的上訴程序，或者這只是最終決定，而該程序沒有任何後續行動？

There is an appeal process, like everything else, that would -- there would be appeal, I think, to the Federal Circuit.

就像其他事情一樣，有一個上訴程序，我認為，可以向聯邦巡迴法院提出上訴。

But once, assuming for a moment that the IPRs that were instituted actually, that we prevailed the view for the ITC, as I understand, it would be the -- they'd be considered in effect and the order would be -- the order wouldn't apply to us.

但一旦假設智慧財產權實際上已經制定，我們就 ITC 的觀點佔了上風，據我所知，這將是——它們將被考慮為有效，並且命令將是——命令不適用於我們。

This concludes the Arista Q1 2017 Earnings Call.

Arista 2017 年第一季財報電話會議到此結束。

I also want to mention that we have posted a presentation which provides additional information on our fiscal results, which you can access on the Investors section of our website.

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財務業績的更多信息，您可以在我們網站的投資者部分訪問該演示文稿。

Thank you to everyone for joining us today.

感謝大家今天加入我們。

Thank you for joining, ladies and gentlemen.

女士們、先生們，感謝您的加入。

This concludes today's call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。