Arista Networks Inc (ANET) 2018 Q1 法說會逐字稿

Welcome to the First Quarter 2018 Arista Networks Financial Results Earnings Conference Call.

歡迎參加 Arista Networks 2018 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, and thank you for joining us.

大家下午好，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 release of its fiscal first quarter 2018.

今天下午，Arista Networks 發布新聞稿，宣布發布 2018 年第一季財報。

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 relating to our financial outlook for the second quarter of the 2018 fiscal year, industry innovations or market opportunity and the impact of litigation, which are subject to the risks and uncertainties that we discuss in detail on our documents filed with the SEC specifically in our most recent Form 10-K, and which could 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 2018 財年第二季度的財務前景、行業創新或市場機會以及訴訟影響相關的聲明，這些聲明取決於我們在向SEC 提交的文件中詳細討論了風險和不確定性，特別是在最新的10-K 表格中，這些風險和不確定性可能導致實際結果與這些聲明中預期的結果有重大差異。

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

這些前瞻性陳述從今天起適用，您不應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've provided reconciliations 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 our first quarter of 2018 earnings call.

感謝大家今天下午參加我們 2018 年第一季的財報電話會議。

I am pleased to report that we had a good quarter given the normal seasonality.

我很高興地報告，考慮到正常的季節性，我們度過了一個不錯的季度。

We demonstrated our predictable profitable growth with non-GAAP revenue of $472.5 million as we grew more than 40% year-over-year.

我們展示了可預測的獲利成長，非 GAAP 收入達到 4.725 億美元，比去年同期成長超過 40%。

Non-GAAP earnings per share was $1.66, with services contributing 13.7% of overall sales.

非 GAAP 每股收益為 1.66 美元，服務業務佔總銷售額的 13.7%。

From a geographic perspective, our customers in the Americas contributed 67% of the total revenue, while the rest of the 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營收的67%，而其他國際影院則在本季穩定成長。

We delivered non-GAAP gross margins of 64.4% in a 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 毛利率達到 64.4%。

Our top 10 customers included 4 out of the 5 verticals.

我們的前 10 名客戶包括 5 個垂直行業中的 4 個。

Cloud titans contributed strongly in Q1 and ranked as our #1 vertical, followed by enterprises at #2, service providers and cloud-specialized providers pretty much tied at #3, followed by financial.

雲端巨頭在第一季度貢獻強勁，在我們的垂直領域排名第一，其次是排名第二的企業，服務供應商和雲端專業供應商幾乎並列第三，其次是金融。

Our new customer acquisition continues to be healthy as we exceeded 5,000 cumulative customers this quarter, and we continued to perform well with FlexRoute, our routing license, and CloudVision software customers as well.

我們的新客戶獲取繼續保持健康狀態，本季累計客戶數量超過 5,000 個，而且我們在 FlexRoute、我們的路由許可證和 CloudVision 軟體客戶方面也持續表現良好。

At Arista, we have always embraced open networking trends by designing our platforms with merchant silicon diversity while using modern software to form differentiated cloud networks.

在 Arista，我們始終擁抱開放網路趨勢，透過採用商業晶片多樣性設計我們的平台，同時使用現代軟體形成差異化的雲端網路。

On March 29, Arista introduced the latest data center fixed-lease models, based on Broadcom's Trident 3 and Tomahawk 2 silicons.

3 月 29 日，Arista 推出了基於 Broadcom 的 Trident 3 和 Tomahawk 2 晶片的最新資料中心固定租賃模型。

Arista's 7050X3 and 7260X3 platforms run on the single EOS software image and CloudVision for operational consistency.

Arista 的 7050X3 和 7260X3 平台在單一 EOS 軟體映像和 CloudVision 上運行，以實現操作一致性。

Some of the key innovations include intelligent buffering and automated network load balancing; path and latency monitoring; new protocols, such as segment routing and a fully featured VXLAN stack; high availability with hitless software upgrades, low-power 25-gig and 100-gig systems that are double the capacity of the predecessors; and cloud-scale performance with 12.8-terabit scale and 4.2 billion packets per second of packet forwarding.

一些關鍵創新包括智慧緩衝和自動網路負載平衡；路徑和延遲監控；新協議，例如分段路由和功能齊全的 VXLAN 堆疊；透過無中斷軟體升級、低功耗 25 GB 和 100 GB 系統實現高可用性，其容量是前代產品的兩倍；雲端級效能，具有 12.8 太位元規模和每秒 42 億個資料包轉送。

On OCP's event in March 2018 in San Jose, Arista demonstrated disaggregated EOS via collaboration with 2 key cloud partners, Facebook with Wedge 100 and Microsoft with SONiC.

在 2018 年 3 月在聖荷西舉行的 OCP 活動中，Arista 透過與 2 個主要雲端合作夥伴（Facebook 與 Wedge 100 以及 Microsoft 與 SONiC）合作展示了分類 EOS。

As many of you may know, we began our Microsoft journey back in 2015 or '16 with SAI, Switch Abstraction Interface.

正如你們中許多人可能知道的那樣，我們早在 2015 年或 16 年就開始了我們的 Microsoft 之旅，推出了 SAI（Switch Abstraction Interface）。

We have core contributions to this initiative.

我們對此倡議做出了核心貢獻。

This year, Arista and Microsoft expanded the SONiC initiative across the flagship Arista 7500 as the only modular chassis supporting the Microsoft management stack.

今年，Arista 和 Microsoft 將 SONiC 計畫擴展到旗艦產品 Arista 7500，作為唯一支援 Microsoft 管理堆疊的模組化機箱。

Arista also supports EOS and containerized EOS on Facebook's open Wedge 100.

Arista 也在 Facebook 的開放 Wedge 100 上支援 EOS 和容器化 EOS。

This allows customization of script for automating network operation flows, and in both these cases, Arista's advanced EOS SDK is demonstrated in full action.

這允許自訂用於自動化網路操作流程的腳本，並且在這兩種情況下，Arista 的高級 EOS SDK 都得到了完整的演示。

This quarter, we also participated in routing interoperability at the MPLS + SDN + NFV World Congress event in Paris.

本季度，我們也參加了巴黎 MPLS + SDN + NFV 世界大會活動中的路由互通性。

We're gratified to be recognized for the first time in The Forrester Wave for hardware platforms in SDN as a leader, with the top score in both strategy and current offerings in Q1 2018.

我們很高興首次在 SDN 硬體平台 Forrester Wave 中被評為領導者，並在 2018 年第一季的策略和當前產品中獲得最高分。

We're also proud to be recognized as one of the top 10 employers in The Bay Area Best Places to Work in the large employee category, ranked #9 out of 130 eligible companies.

我們也很榮幸被評為「灣區最佳工作場所」大型員工類別前 10 名雇主之一，在 130 家符合資格的公司中排名第 9。

As I look at Q1 2018 and reflect on our start, I am pleased with our performance and the trajectory ahead.

當我回顧 2018 年第一季並反思我們的開局時，我對我們的表現和未來的發展軌跡感到滿意。

In particular, we are now well beyond the overhead and delays of customer certifications that we have been experiencing during the past 3 quarters, having successfully completed most of the certifications.

特別是，我們現在已經成功完成了大部分認證，遠遠超出了過去三個季度所經歷的客戶認證的開銷和延遲。

And in light of the recent ITC suspensions on the remedial orders of the '668 patent as well as the expiration of the '577 patent on June 30, we pretty much expect to return to normalcy in the second half of 2018 with respect to '945.

鑑於最近 ITC 暫停了 '668 專利的補救令，以及 '577 專利於 6 月 30 日到期，我們幾乎預計 '945 專利將在 2018 年下半年恢復正常。

And so with that, I'd like to turn it over to Ita, our Chief Financial Officer, for Q1 2018 financial details.

因此，我想將 2018 年第一季的財務詳細資料交給我們的財務長 Ita。

Ita?

伊塔？

Thanks, Jayshree, and good afternoon.

謝謝，Jayshree，下午好。

This announcement of our Q1 results and our guidance for Q2 '18 is based on non-GAAP and excludes all noncash, stock-based compensation impacts and legal costs associated with the ongoing lawsuits.

我們第一季業績的公佈和 18 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、基於股票的薪資影響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 revenues in Q1 were $472.5 million, up 41% year-over-year, and above our guidance of $450 million to $468 million.

第一季總營收為 4.725 億美元，年增 41%，高於我們 4.5 億至 4.68 億美元的指引值。

We were pleased with overall demand in the quarter, with particular strength from our cloud titan vertical.

我們對本季的整體需求感到滿意，尤其是我們的雲端巨頭垂直市場的強勁表現。

Service revenues represented approximately 13.7% of revenue, up slightly from prior quarters.

服務收入約佔收入的 13.7%，較前幾季略有上升。

International revenues for the quarter came in at $157 million or 33% of total revenue, consistent with the prior period.

該季度的國際營收為 1.57 億美元，佔總營收的 33%，與上一季持平。

While some of this continued strength in international mix was related to deployments by our U.S. cloud titan customers, we also experienced healthy growth from our in-region international businesses in the period.

雖然國際業務的持續成長在一定程度上與我們的美國雲端巨頭客戶的部署有關，但在此期間，我們的區域內國際業務也實現了健康成長。

Overall, gross margin in Q1 was 64.4%, down from 65.9% last quarter but above the midpoint of our guidance of 63% to 65%.

整體而言，第一季的毛利率為 64.4%，低於上季的 65.9%，但高於我們 63% 至 65% 指引值的中位數。

This reflected an anticipated return to a more typical customer mix for the first quarter.

這反映出第一季預計將恢復到更典型的客戶組合。

Operating expenses for the quarter were $137.4 million, down from $139.3 million last quarter.

本季營運費用為 1.374 億美元，低於上季的 1.393 億美元。

R&D spending came in at $91.4 million or 19.3% of revenue, down from $96 million last quarter with reduced NRE and prototype spending, offset by headcount additions.

研發支出為 9,140 萬美元，佔收入的 19.3%，低於上季度的 9,600 萬美元，原因是 NRE 和原型支出減少，但被員工數量增加所抵消。

Sales and marketing expense was $36.2 million or 7.7% of revenue, up from $33.5 million last quarter, reflecting growth in headcount.

銷售和行銷費用為 3,620 萬美元，佔收入的 7.7%，高於上季度的 3,350 萬美元，反映了員工人數的成長。

Our operating income for the quarter was $166.7 million or 35.3% of revenue.

我們本季的營業收入為 1.667 億美元，佔營收的 35.3%。

Other income and expense for the quarter was a favorable $4.2 million, and our effective tax rate was 21.5%.

本季的其他收入和支出為 420 萬美元，有效稅率為 21.5%。

Our higher-than-anticipated tax rate reflects updated guidance in relation to the recently adopted tax act.

我們高於預期的稅率反映了與最近通過的稅法相關的最新指引。

This resulted in net income for the quarter of $134.1 million or 28.4%.

這使得該季度的淨利潤達到 1.341 億美元，即 28.4%。

Our diluted share number for the quarter was 80.7 million shares, resulting in a diluted earnings per share number of $1.66, up 79% from the prior year.

本季稀釋後股票數量為 8,070 萬股，稀釋後每股收益為 1.66 美元，較上年增長 79%。

Legal expenses associated with the ongoing lawsuits came in at $7.1 million for the quarter and are excluded from our non-GAAP results.

本季度與正在進行的訴訟相關的法律費用為 710 萬美元，不包括在我們的非 GAAP 業績中。

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 $1.7 billion.

本季末現金、現金等價物及投資約 17 億美元。

We generated $195.5 million of cash from operations in the March quarter, which reflects strong net income performance combined with overall improvements in working capital requirements.

我們在三月季度的營運中產生了 1.955 億美元的現金，這反映出強勁的淨利潤表現以及營運資本需求的整體改善。

DSOs came in at 39 days, down from 49 days in Q4, reflecting the timing of billings and collections in the quarter.

DSO 的週期為 39 天，低於第四季的 49 天，反映了本季的帳單和收款時間。

Inventory turns were 2.2x, up from 1.8 in Q4.

庫存週轉率為 2.2 倍，高於第四季的 1.8 倍。

Inventory decreased to $268.1 million in the quarter, down from $306.2 million in the prior period.

本季庫存減少至 2.681 億美元，低於上一季的 3.062 億美元。

This reflects reductions in both raw materials and finished goods as we continue optimize on our supply chain.

這反映出隨著我們不斷優化供應鏈，原料和製成品的減少。

In addition, we maintained a further $24 million of inventory deposits recorded in other assets compared to $34 million last quarter.

此外，我們在其他資產中還保留了 2,400 萬美元的庫存存款，而上季為 3,400 萬美元。

Our total deferred revenue balance was $456.1 million, down from $515.3 million in Q4.

我們的遞延收入餘額總額為 4.561 億美元，低於第四季的 5.153 億美元。

The product deferred revenue declined by approximately $50 million in the quarter, with customers completing many of their '945-related qualifications.

該產品的遞延收入在本季下降了約 5,000 萬美元，因為客戶完成了許多與 945 相關的資格認證。

In addition, as part of our adoption of ASU 606, we reclassified approximately $19 million of software-related deferred revenue to other contract liabilities on the balance sheet.

此外，作為我們採用 ASU 606 的一部分，我們將大約 1,900 萬美元的軟體相關遞延收入重新分類到資產負債表上的其他合約負債。

As we go forward, you should expect lower levels of product deferred revenue, given the relative maturity of the R-Series platform, completion of any remaining '945-related certifications and the adoption of ASU 606.

隨著我們的前進，考慮到 R 系列平台的相對成熟、所有剩餘的 945 相關認證的完成以及 ASU 606 的採用，您應該預期產品遞延收入水準會降低。

As a reminder, any such decline in deferred product revenue is not, in and of itself, an indication of a change in the underlying demand trends of the business.

提醒一下，遞延產品收入的任何此類下降本身並不表示業務的潛在需求趨勢發生了變化。

Accounts payable days were 38 days, up from 30 days in Q4, reflecting the timing of inventory receipts and payments.

應付帳款天數為 38 天，高於第四季的 30 天，反映了庫存收付的時間。

Capital expenditures for the quarter were $6.3 million.

該季度的資本支出為 630 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 are pleased with the momentum of the business in the first quarter, with strong demand particularly from our cloud customers.

我們對第一季的業務動能感到滿意，特別是來自我們的雲端客戶的強勁需求。

As we look forward to the remainder of 2018, we believe that we are well positioned to benefit from the continuing growth in cloud networking across our customer base.

展望 2018 年剩餘時間，我們相信我們已做好充分準備，能夠從客戶群雲端網路的持續成長中受益。

Given some tough 2017 comparables, we believe that the current consensus for the balance of the year, which calls for year-over-year growth in the mid-20% range, remains relevant.

考慮到 2017 年的一些艱難的可比較情況，我們認為目前對今年剩餘時間的共識，即要求同比增長在 20% 左右的範圍內，仍然具有現實意義。

Our gross margin guidance for the second quarter of 62% to 64% reflects an anticipated mix towards cloud revenues in the quarter.

我們對第二季毛利率的指引為 62% 至 64%，反映了本季雲端收入的預期組合。

We now expect our go-forward non-GAAP tax rate to be in the range of 21% to 22%, reflecting further guidance on elements of the recently adopted tax act.

我們現在預計未來的非公認會計準則稅率將在 21% 至 22% 之間，反映了對最近通過的稅法要素的進一步指導。

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 impact and any legal costs associated with the ongoing lawsuits, is as follows: revenues of approximately $500 million to $514 million; gross margin of approximately 62% to 64%; operating margin of approximately 32% to 34%.

在此背景下，我們對第二季度的指導（基於非公認會計準則業績，不包括任何非現金股票補償影響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 5 億美元5.14 億美元；毛利率約62%至64%；營業利益率約32%至34%。

Our effective tax rate is expected to be approximately 21.5% with diluted shares of approximately 81 million.

我們的有效稅率預計約為 21.5%，稀釋後股份約為 8,100 萬股。

Please note that, based on our current outlook, we expect costs associated with the ongoing lawsuits to be approximately $6 million for the quarter.

請注意，根據我們目前的展望，我們預計本季與正在進行的訴訟相關的成本約為 600 萬美元。

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。

Due to time constraints, I'd like to request that everyone please limit themselves to a single question.

由於時間有限，我想請大家只回答一個問題。

(Operator Instructions) Your first question comes from Rod Hall with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Rod Hall。

Yes, I guess, I wanted to focus on the '945 certifications and just ask a couple of questions around that.

是的，我想，我想重點關注 '945 認證，並就此問幾個問題。

Number one, is all the deferred revenue associated with those now released or are there still some deferred revenue balance associated with those certifications?

第一，所有遞延收入是否都與現在發布的相關，或者是否仍然存在一些與這些認證相關的遞延收入餘額？

I wanted to be clear on that.

我想澄清這一點。

And then my bigger question is, you guys had called out some project-oriented delays as a result of those certifications.

然後我更大的問題是，你們已經指出了由於這些認證而導致的一些專案導向的延遲。

Are those projects back online now?

這些項目現在恢復上線了嗎？

Or are you still ramping back to normal spending with some of those customers that were waiting to certify?

或者您仍在與一些等待認證的客戶恢復正常支出？

Thanks, Rod.

謝謝，羅德。

I'll take the second one first and then hand off to Ita on the deferred piece.

我會先拿第二個，然後將延期的部分交給 Ita。

So I think we -- having now completed majority of our certifications -- and if you recall, I was explaining how some of the complex use cases took time.

所以我認為我們——現在已經完成了大部分的認證——如果你還記得的話，我正在解釋一些複雜的用例如何花費時間。

So we feel pretty good about that.

所以我們對此感覺很好。

In 2018, we are pretty much now starting to look at the impact of certifications to be very minimal in Q2 and virtually nonexistent in the second half.

2018 年，我們幾乎開始認為認證的影響在第二季非常小，在下半年幾乎不存在。

So we're ramping back to new projects now.

所以我們現在正在恢復新項目。

So the worst is behind us.

所以最糟糕的時期已經過去了。

Ita?

伊塔？

Yes.

是的。

And then just to take care of your first question, Rod.

然後解決你的第一個問題，羅德。

I think there is still some '945 certification-related deferred; very small.

我認為仍有一些與 '945 認證相關的項目被推遲；很小。

And then, there are some other unrelated stuff, just normal kind of feature-delivery-type deferred that's in the balance sheet.

然後，還有一些其他不相關的東西，只是資產負債表中正常的功能交付類型延遲。

So that number is now going to be much smaller, and it'll rotate just based on features and value of features as we make commitments in particular contracts going forward.

因此，這個數字現在會小得多，並且隨著我們在未來的特定合約中做出承諾，它將僅根據功能和功能價值進行輪換。

And I wonder -- just a follow-up.

我想知道——這只是後續行動。

I wonder, could you guys comment a little bit on what you're seeing with respect to AI workloads and spending there?

我想知道，你們能評論一下你們所看到的人工智慧工作負載和支出嗎？

And do you think you have the majority of the networking in that market?

您認為您擁有該市場的大部分網路嗎？

Or do you find that there's quite a bit of competition around?

或者您發現周圍存在相當多的競爭？

Just curious how that's going.

只是好奇這是怎麼回事。

Well, I think the whole AI space is very, very exciting.

嗯，我認為整個人工智慧領域非常非常令人興奮。

The -- it's clearly in very early stages.

顯然還處於非常早期的階段。

We have a -- in fact, just 2 weeks ago, we were on a roadshow and -- with our partners, NVIDIA and storage partner, Pure.

事實上，就在兩週前，我們與我們的合作夥伴 NVIDIA 和儲存合作夥伴 Pure 一起進行了路演。

And what I would say to that is, clearly, the importance of AI is to reduce cycle time.

我想說的是，顯然，人工智慧的重要性在於縮短週期時間。

And that has a profound impact on the bandwidth, performance, capacity and latency of networking.

這對網路的頻寬、效能、容量和延遲產生深遠的影響。

So we derive an indirect benefit as a result of the large amount of GPU.

因此，我們透過大量的 GPU 獲得了間接的好處。

But still very early stages.

但仍處於非常早期的階段。

I would say, in experimental stages.

我想說的是，處於實驗階段。

Your next question comes from Jim Suva with Citi.

您的下一個問題來自花旗銀行的吉姆·蘇瓦。

Given a lot of the news about privacy concerns and geopolitical trade wars and tensions, stuff like that, have you seen any change in behavior to your cloud spending or any of your customers, either in a positive or pausing manner?

鑑於大量有關隱私問題、地緣政治貿易戰和緊張局勢的新聞，您是否看到您的雲端支出或任何客戶的行為發生了任何變化，無論是積極的還是暫停的？

What I'm getting at is probably looking at putting in some more of your product because of these concerns, or some less are waiting to figure it out, and especially with the trade wars.

我的意思是，由於這些擔憂，我可能會考慮投入更多的產品，或減少一些正在等待解決的產品，尤其是在貿易戰的情況下。

Oh, wow.

哦，哇。

Thanks, Jim.

謝謝，吉姆。

That's a heavy-duty question.

這是一個沉重的問題。

I'm going to start to answer it, but I won't do enough justice.

我要開始回答這個問題，但我不會做得夠公正。

So Anshul Sadana, our Chief Customer Officer who's much more intimate with the cloud, will give you more details.

因此，我們的首席客戶長 Anshul Sadana 將對雲端更加熟悉，他將為您提供更多詳細資訊。

When we look at the whole security and privacy space, I think there's an element of how we work closely with our security vendors, an element of isolation and segmentation and a strong element of audit compliance and encryption.

當我們審視整個安全和隱私領域時，我認為有一個因素是我們如何與安全供應商密切合作，一個因素是隔離和分段，以及一個強大的審計合規性和加密因素。

And particularly since the cloud vendors are deploying a lot of data centers, the encryption and the ownership of the fiber becomes a big deal.

特別是由於雲端供應商正在部署大量資料中心，因此光纖的加密和所有權變得非常重要。

Anshul, you want to say some more?

安舒爾，你還想再說點什麼嗎？

Absolutely, Jayshree.

絕對是，傑什裡。

The data protection in the cloud is very relevant, not so much with respect to the trade wars, but with things like GDPR or any local laws that exist.

雲端中的資料保護非常重要，與其說與貿易戰有關，不如說與 GDPR 或任何現有的當地法律有關。

So when you look at the cloud companies, the regions they're building out, you'll see that some of the regions are smaller and localized within Western Europe or one-off countries.

因此，當您查看雲端公司及其正在建造的區域時，您會發現其中一些區域較小並且位於西歐或一次性國家。

That's all the impact that we see, and that's all part of the cloud business that we're already in.

這就是我們看到的所有影響，也是我們已經涉足的雲端業務的一部分。

Your next question comes from Srini Pajjuri from Macquarie.

您的下一個問題來自麥格理的 Srini Pajjuri。

Two questions, Ita.

有兩個問題，伊塔。

You mentioned mid-20% growth is where you're comfortable for the year.

您提到 20% 的中期成長是您今年感到滿意的水平。

Obviously, you grew 40% in Q1.

顯然，第一季成長了 40%。

Does this mean, your second half, you're assuming some sort of deceleration from the mid-20%?

這是否意味著，你的下半年，你會假設從 20% 中期開始出現某種減速？

Or do you expect that to be within that ballpark?

或者您預計會在這個範圍內嗎？

And then, just one clarification.

然後，只有一項澄清。

You said ASU 606 had like $19 million impact on deferred revenues.

您說 ASU 606 對遞延收入產生了約 1,900 萬美元的影響。

Did that help you in terms of revenue in the quarter?

這對您本季的收入有幫助嗎？

Yes.

是的。

So on the first one, I think the commentary was that for the balance of the year, for the remainder of the year, we did say we think the mid-20s is a reasonable way to think about the growth rate, right, so not incorporating the Q1 growth rate.

因此，關於第一個，我認為評論是，對於今年的剩餘時間，對於今年剩餘的時間，我們確實說過我們認為 20 年代中期是考慮增長率的合理方式，對吧，所以不是納入第一季度增長率。

And then, on the ASU 606, it's really a balance sheet reclass.

然後，在 ASU 606 上，這實際上是資產負債表的重新分類。

It's kind of on a technicality where we have some prepaid subscriptions and will require to record it as a contract liability as opposed to deferred revenue, all right?

從技術角度來說，我們有一些預付訂閱，需要將其記錄為合約負債，而不是遞延收入，好嗎？

So it's really just a relocation on the balance sheet from deferred to other contract liabilities.

因此，這實際上只是將資產負債表從遞延負債轉移到其他合約負債。

So not flowing through the P&L.

所以不流經損益表。

Your next question comes from Jeff Kvaal with Nomura.

您的下一個問題來自野村證券的 Jeff Kvaal。

Yes.

是的。

We've been hit by a raft of headlines from the cloud spenders over the last week or so, talking about big beats in their CapEx.

在過去一周左右的時間裡，我們受到了大量來自雲端消費者的頭條新聞的影響，談論他們的資本支出的大幅增長。

It sounds like that is pretty closely tied to what is going on in their underlying business.

聽起來這與他們的基礎業務正在發生的事情密切相關。

So CapEx for them ought to be growing faster in 2018 than it grew in 2017.

因此，他們 2018 年的資本支出成長應該比 2017 年更快。

It looks like you all are set to grow a little slower in 2018 versus last year.

看起來你們 2018 年的成長速度會比去年慢一些。

Can you help us bridge that gap?

您能幫助我們彌補這一差距嗎？

I understand, from quarter-to-quarter things fluctuate, but over the course of the year, then we would like to think that things would balance out a little bit.

我理解，每個季度的情況都會有所波動，但在這一年中，我們希望情況會有所平衡。

Well, certainly, Jeff.

嗯，當然，傑夫。

As you know, cloud titans do have seasonal spending.

如您所知，雲端巨頭確實有季節性支出。

And we have enjoyed a very strong partnership with many of them and continue to.

我們與其中許多人建立了非常牢固的合作關係，並將繼續保持這種夥伴關係。

Our heritage is, undoubtedly, and our forecast and our past, our present and our future is very much tied to cloud networking for all types of customers.

毫無疑問，我們的傳統、我們的預測、我們的過去、我們的現在和我們的未來都與所有類型客戶的雲端網路密切相關。

I think what you should take away from this is, while we have a great deal of visibility to the near future, which is 1 or 2 quarters, their spending for the entire year or subsequent quarters involves a lot of moves and shifts, and networking is still a very small piece of their CapEx.

我認為你應該從中得到的結論是，雖然我們對不久的將來（即一兩個季度）有很大的了解，但他們全年或隨後幾個季度的支出涉及大量的變動和轉變，以及網絡仍然是他們資本支出的一小部分。

So we continue to understand those use cases.

所以我們繼續了解這些用例。

Anshul and the team are very intimately involved, and we have no reason to believe that they aren't, technically or business-wise, a strong partnership.

Anshul 和團隊的參與非常密切，我們沒有理由相信他們在技術或業務方面不是一個強有力的合作夥伴關係。

But we will only know more, say for Q4, around Q2 or Q3.

但我們只會知道更多，例如第四季、第二季或第三季。

So it's really hard to predict, and we try not to.

所以這真的很難預測，我們盡量不這麼做。

So sometimes they don't know, and that's why we don't know either.

所以有時他們不知道，這就是為什麼我們也不知道。

Anshul, you want to add anything more to that?

Anshul，您還想補充什麼嗎？

Absolutely.

絕對地。

I want to remind everyone, we've discussed in the past, that for the cloud companies, a data center buildout or a [restore] buildout is a 2- to 3-year project.

我想提醒大家，我們過去討論過，對於雲端公司來說，資料中心擴建或[恢復]擴建是一個2到3年的專案。

And when the networking components land and we see the product bookings and revenue, it's not exactly in the same month or the same quarter.

當網路組件落地時，我們看到產品預訂和收入，這並不完全是在同一個月或同一季度。

The lag could be as much as 18 months for the bigger regions.

對於較大的地區來說，滯後時間可能長達 18 個月。

That's why it's very hard for us to forecast this.

這就是為什麼我們很難預測這一點。

Yes, but I would remind you, Jeff, that cloud was strong from a momentum -- from a demand perspective in Q1.

是的，但我要提醒你，傑夫，從第一季的需求角度來看，雲端運算的勢頭強勁。

So I think it's typically strong, and we saw that again this quarter.

所以我認為它通常很強勁，我們本季再次看到了這一點。

Okay.

好的。

And maybe to probe on that a little bit, you talked about a recurring...

也許為了探討這一點，你談到了一個反覆出現的...

I'm sorry, we're just going to limit it, Jeff, to one question, if you don't mind.

抱歉，傑夫，如果您不介意的話，我們只想限制一個問題。

Oh, you got me, Charles.

哦，你抓住了我，查爾斯。

You got me.

你抓住了我。

Go ahead.

前進。

Thanks, Jeff.

謝謝，傑夫。

Your next question comes from Alex Kurtz with KeyBanc.

您的下一個問題來自 KeyBanc 的 Alex Kurtz。

This is Steve Enders on for Alex.

我是史蒂夫·恩德斯（Steve Enders）為亞歷克斯發言。

I was wondering if you guys had seen any change in mix of top-rack switches and spine within your web-scale customers over the past few years or how that's trended?

我想知道過去幾年你們的網路規模客戶中頂架交換機和主幹的組合是否有任何變化，或者趨勢如何？

And how does that also compare in the service provider segment?

在服務提供者細分市場中，情況又如何呢？

We don't see any appreciable change.

我們沒有看到任何明顯的變化。

Obviously, the Spine and routing has given us more use cases in the cloud and service provider, but [at least] gives us a lot of ports.

顯然，Spine 和路由為我們在雲端和服務供應商中提供了更多用例，但[至少]為我們提供了許多連接埠。

So overall, not much difference.

所以整體來說，差別不大。

Your next question comes from Paul Silverstein with Cowen and Company.

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

I'll keep it simple.

我會保持簡單。

A quantification question.

一個量化問題。

Paul, you're sounding very muffled.

保羅，你聽起來很悶悶不樂。

Yes, we can't hear you, Paul.

是的，我們聽不到你的聲音，保羅。

(inaudible)

（聽不清楚）

Can't hear you.

聽不到你說話。

Can we just skip him and...

我們可以跳過他然後...

Yes.

是的。

Can we come back to you, Paul?

我們可以回到你身邊嗎，保羅？

You -- when you have better quality.

你——當你有更好的品質時。

Can't hear you.

聽不到你說話。

You're very muffled.

你很悶。

Let's get -- let's fix that line, and we'll come back to you.

讓我們修復該線路，然後我們將回覆您。

Your next question comes from Ittai Kidron with Oppenheimer.

您的下一個問題來自 Ittai Kidron 和奧本海默。

Help me think about -- when you talk about the mid-20s for the remainder of the year including the second quarter, can you help me think on a -- if I look at it on a vertical standpoint, which verticals you think can outperform that bar versus underperform that bar?

幫我思考一下——當你談論今年剩餘時間（包括第二季度）的 20 多歲左右時，你能幫我思考一下——如果我從垂直的角度來看，你認為哪些垂直領域可以表現出色那個欄與表現不佳那個欄？

Yes, I don't think that we're going to try to do that.

是的，我認為我們不會嘗試這樣做。

I mean, obviously, there are a number of various different scenarios as we move through the year where we'll see strong demand with some cases than others.

我的意思是，顯然，隨著這一年的發展，會出現許多不同的情況，我們會看到某些情況的需求比其他情況強勁。

We set our guidance based on a number of different potential outcomes, but I'm not going to go and try and lay out a single case here.

我們根據許多不同的潛在結果制定指導，但我不會嘗試在這裡列出一個案例。

Thanks, Ittai.

謝謝，伊泰。

We'll try to do our best going forward, but as you know, some of these verticals are very lumpy.

我們將盡力向前邁進，但如您所知，其中一些垂直領域非常不穩定。

For example, we may do really well in one quarter with service provider or really well in enterprise if we win a large number of enterprise customers.

例如，如果我們贏得了大量的企業客戶，我們可能會在一個季度內與服務提供者做得非常好，或者在企業方面做得非常好。

So in general, all of them are doing well and contributing double digits in terms of segments.

所以總的來說，他們都做得很好，並且在細分市場上的貢獻達到了兩位數。

So we hope they all have the possibility of growing well north of [20%.]

所以我們希望它們都有可能在[20%]以北成長。

Got it.

知道了。

Can you give a little bit of an update on how enterprise is going for you as that's important kind of in the future?

您能否介紹企業的最新發展情況，因為這在未來很重要？

Yes.

是的。

No, I think, clearly, it was our #2 vertical in Q1.

不，我認為，顯然，這是我們第一季的第二大垂直領域。

And we tend to pull out enterprise from financials, but if you added the financials, it would've been pretty close to our #1 vertical.

我們傾向於將企業從金融領域中剔除，但如果你加入金融領域，它會非常接近我們的第一個垂直領域。

I would say we continue to do very, very well in the enterprise.

我想說，我們在企業方面繼續做得非常非常好。

Customers are incredibly frustrated and seeking an alternative, both for quality and innovation reasons.

出於品質和創新的原因，客戶感到非常沮喪並尋求替代方案。

The size of enterprise opportunities always start small and there is a long testing period, but we're pleased with our performance.

企業機會的規模總是從小規模開始，並且有很長的測試期，但我們對我們的表現感到滿意。

And our customer gain in Q1 was very strong, just like it was in Q3 and Q4 last year.

我們第一季的客戶成長非常強勁，就像去年第三季和第四季一樣。

Your next question comes from Mark Moskowitz with Barclays.

您的下一個問題來自巴克萊銀行的馬克·莫斯科維茨（Mark Moskowitz）。

Yes, just wondering if you could touch on where we are in the 100 gig cycle.

是的，只是想知道您是否可以談談我們在 100 場演出週期中的位置。

It seems to be a question we get a lot from investors in terms of Arista's prime mover -- or first-mover advantage there.

我們從投資者那裡得到了很多關於 Arista 的主要推動者或先發優勢的問題。

I mean, are we in the third inning, the fourth inning?

我的意思是，我們現在是在第三局、第四局嗎？

Sorry to use the baseball analogy, but how should investors think about Arista's momentum there with respect to 100 gig?

抱歉用棒球來比喻，但投資者應該如何看待 Arista 在 100 場演出方面的勢頭？

Well, if you use the cricket analogy, we're not even in the first innings.

好吧，如果你用板球類比的話，我們甚至還沒有進入第一局。

But if you use the baseball analogy, I would say we're still between the first and second innings.

但如果你用棒球來比喻，我會說我們仍然在第一局和第二局之間。

And I think 100 gig is going to prove to be a very strong requirement, not only because we were the first mover last year, but we'll continue to be the first mover for many forms and flavors of it.

我認為 100 場演出將被證明是一個非常強烈的要求，不僅因為我們去年是先行者，而且我們將繼續成為許多形式和風格的先行者。

It's important to understand it's not one product.

重要的是要了解它不是一種產品。

It's going to permeate the entire cloud networking.

它將滲透到整個雲端網路。

And as we start to move more 25 gig and 50 gig into the downlinks with storage and compute, the need for 100 gig moves into the Spine, into the data center interconnect, into the routing flavors.

當我們開始將更多的 25 GB 和 50 GB 轉移到具有儲存和運算功能的下行鏈路時，對 100 GB 的需求轉移到主幹、資料中心互連和路由類型中。

And so we continue to believe that we will have large share and build upon our first-mover advantage.

因此，我們仍然相信我們將擁有很大的份額並鞏固我們的先發優勢。

And we also believe that the arrival of 400 gig next year will only make us stronger in 100 gig.

我們也相信，明年400場的到來只會讓我們在100場演出中變得更強大。

So the 2 will go in tandem.

所以兩者將同時進行。

Your next question comes from Aaron Rakers with Wells Fargo.

您的下一個問題來自富國銀行的 Aaron Rakers。

Yes, I just want to go on the gross margin line and understand.

是的，我只想上毛利率線來了解一下。

I think, this quarter, looking at the guidance of 62% to 64%, that would compare to 63% to 65% guidance ranges over the next -- or the last couple of quarters.

我認為，本季的指導值為 62% 至 64%，而下一個季度或過去幾季的指導範圍為 63% 至 65%。

It looks like your product gross margin came down a little bit.

看來你們的產品毛利率下降了一點。

So just curious of kind of what's changing there, if there's anything within the mix or assumptions there that resulted a little bit of a lower gross margin assumption?

所以只是好奇那裡發生了什麼變化，是否有任何組合或假設導致毛利率假設稍微降低？

Yes, I mean, I think the biggest driver still for our gross margin is kind of within that 63% to 65% range is going to be customer mix, right?

是的，我的意思是，我認為我們毛利率的最大驅動因素仍然是 63% 到 65% 範圍內的客戶組合，對吧？

And as we head into Q2, we believe we will have a heavier cloud, the large customer base mix in Q2, and that's causing us to be a little more cautious around the gross margin guide and the gross margin outlook.

當我們進入第二季時，我們相信我們將在第二季擁有更大的雲端量和龐大的客戶群組合，這導致我們對毛利率指南和毛利率前景更加謹慎。

So it's really a customer mix question.

所以這其實是客戶組合問題。

I think the 63% to 65% for the year, we still feel good about.

我認為今年的 63% 到 65%，我們仍然感覺良好。

Your next question comes from Hendi Susanto with Gabelli.

您的下一個問題來自 Hendi Susanto 和 Gabelli。

Congrats on seeing strong sales in Q1 and then enterprise sales.

恭喜您看到第一季的強勁銷售以及隨後的企業銷售。

I have heard market commentaries that despite of strength in Arista's Enterprise sales, Arista is still having low penetration among enterprises.

我聽到市場評論說，儘管Arista 的企業銷售強勁，但Arista 在企業中的滲透率仍然較低。

So Jayshree, would you be able to share insight into opportunities, outlook and the current state of enterprise penetration for both routing and switching?

Jayshree，您能分享一下對路由和交換企業滲透的機會、前景和現狀的見解嗎？

Okay.

好的。

Thanks, Hendi.

謝謝，亨迪。

I would have to agree with you that Arista can improve its penetration in the enterprise.

我必須同意你的觀點，Arista 可以提高其在企業中的滲透率。

It's a huge opportunity for us, and even though we're doing well, we could do even better.

這對我們來說是一個巨大的機會，儘管我們做得很好，但我們可以做得更好。

Our penetration is both in switching and routing.

我們的滲透是在交換和路由方面。

So we're not seeing low penetration in either.

因此，我們並沒有看到這兩個領域的滲透率較低。

I think our penetration in switching is stronger than routing, because routing, especially for the scale of capability we offer, tends to be favored by the largest service providers and cloud providers.

我認為我們在交換方面的滲透比路由更強，因為路由，尤其是我們提供的能力規模，往往受到最大的服務供應商和雲端供應商的青睞。

But I would say, in general, I would like to see Arista do better, but we're doing very well.

但我想說，總的來說，我希望看到 Arista 做得更好，但我們做得很好。

Your next question comes from Mitch Steves with RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Mitch Steves。

So just on the gross margin guidance, I want to get back to that a little bit.

因此，就毛利率指導而言，我想稍微回顧一下。

So given that the cloud vertical is supposed to be kind of the fastest growing and largest piece, wouldn't we expect the margins to actually increase, given that the hyperscale guys typically buy the higher-end products?

因此，考慮到雲端垂直領域應該是成長最快、規模最大的部分，考慮到超大規模企業通常會購買高階產品，我們難道不會期望利潤率實際上會增加嗎？

Or I guess, what am I missing there in terms of the mix side, [do you think?]

或者我猜，我在混合方面缺少什麼，[你認為？]

I mean, if you look historically, the mix factor has tended to be, if we have a lot of cloud or large customer, then obviously they have better or more competitive pricing, and that tends to drive a lower gross margin.

我的意思是，如果你從歷史上看，混合因素往往是，如果我們有很多雲端或大客戶，那麼顯然他們有更好或更有競爭力的定價，這往往會導致毛利率降低。

Yes, just to clarify what Ita said, I couldn't agree more, Mitch.

是的，只是為了澄清伊塔所說的話，我完全同意，米奇。

Our cloud gross margins are driven by volume, and volumes drive lower prices and, therefore, lower gross margins to us.

我們的雲毛利率是由銷售決定的，銷量會降低價格，進而降低我們的毛利率。

So our cloud titan margin is significantly below the corporate average.

因此，我們的雲端巨頭利潤率明顯低於企業平均。

Your next question comes from James Faucette with Morgan Stanley.

您的下一個問題來自摩根士丹利的詹姆斯·福賽特。

Great.

偉大的。

I want to just ask about efforts to continue to expand the customer base, both domestically and internationally, kind of the progress you're making there.

我只想問一下你們在繼續擴大國內和國際客戶群方面所做的努力，以及你們在這方面取得的進展。

One of the things that we've been seeing is that there continue to be what seem to be somewhat extended lead times on delivery.

我們看到的一件事是，交貨時間似乎仍然有所延長。

But I'd like to hear kind of how you're thinking about that, what the progress has been and how we should think about opportunities going forward.

但我想聽聽您對此有何看法，取得了哪些進展，以及我們應該如何考慮未來的機會。

Thanks, James.

謝謝，詹姆斯。

You might remember, I said we hired many Manuel Rivelo and the specific goal here especially was to help with international expansion and enterprise.

您可能還記得，我說我們僱用了很多曼努埃爾·裡維洛（Manuel Rivelo），這裡的具體目標尤其是幫助國際擴張和企業發展。

I think we're both investing very well in that and expanding in certain verticals.

我認為我們都在這方面進行了很好的投資，並在某些垂直領域進行了擴展。

The M&E vertical is a particularly strong one for us.

機電垂直領域對我們來說尤其重要。

We just came out of a strong network broadcasting show.

我們剛從一場強勢的網路直播節目中走出來。

But I think we can do even more in the international theaters.

但我認為我們可以在國際影院做得更多。

As you can see, our ratios and percentages have changed by 5 to 10 points in the last few quarters, but we can do even more.

正如您所看到的，過去幾個季度我們的比率和百分比發生了 5 到 10 個百分點的變化，但我們可以做得更多。

So there's no denying that, similar to the last answer I gave, that Arista's opportunity and execution in enterprise can be even stronger.

所以不可否認的是，與我上次給出的答案類似，Arista在企業中的機會和執行力可以更強。

But as you also know, enterprises are risk-averse.

但眾所周知，企業是規避風險的。

And only in the last year, I would say, they have started to take Arista seriously.

我想說，直到去年，他們才開始認真看待 Arista。

So I would ask you all to be patient in seeing the result, just as I'm having to be.

所以我要求大家耐心等待看到結果，就像我必須的那樣。

But having said that, I absolutely agree that especially some of the high-performance verticals are going to be strong for us.

但話雖如此，我絕對同意，特別是一些高性能垂直領域對我們來說將會很強大。

And I expect to see enterprise continue to be a strong vertical for us.

我希望看到企業繼續成為我們強大的垂直領域。

Your next question comes from Erik Suppiger with JMP.

您的下一個問題來自 JMP 的 Erik Suppiger。

One just point of clarification.

只是澄清一點。

Can you update us on the number of routing customers that you had in the quarter?

您能否向我們介紹本季您擁有的路由客戶數量？

Then, secondly, you talked a little bit about the impact of deferred revenues from the deals that you got from -- that were certified.

其次，您談到了來自已認證交易的遞延收入的影響。

Can you talk a little bit about what happened to your backlog?

能談談您的積壓情況嗎？

Did you have many deals in backlog that were a function of the getting qualified?

您是否有許多因獲得資格而積壓的交易？

And has the backlog come down now that those deals have been -- now that you are qualified from the software changes?

既然這些交易已經完成，現在您有資格進行軟體變更，那麼積壓的訂單是否已經減少了？

Erik, I'll take the last piece first.

艾瑞克，我先拿最後一塊。

I mean, we don't disclose backlog, so we're probably not going to get into that.

我的意思是，我們不會透露積壓的情況，所以我們可能不會討論這個問題。

I think the -- our commentary did say that we felt good about momentum in the quarter and we felt good about the demand across the business in the quarter.

我認為——我們的評論確實說我們對該季度的勢頭感到滿意，並且對該季度整個業務的需求感到滿意。

But I -- but we're not going to actually disclose the backlog number.

但我們不會實際揭露積壓訂單數量。

Yes.

是的。

No, I agree with Ita.

不，我同意伊塔的觀點。

But to answer your question on FlexRoute customers, I think I had told you the year-end number last year was over 200.

但為了回答你關於 FlexRoute 客戶的問題，我想我已經告訴你去年年底的數量超過 200 個。

And rather than giving your quarterly numbers, we did do well this quarter, let me just leave it as I think we're going to double this year.

我們沒有給出季度數據，而是本季表現良好，讓我留下它，因為我認為今年我們的業績將會翻倍。

Your next question comes from Alex Henderson with Needham.

您的下一個問題來自 Alex Henderson 和 Needham。

Great.

偉大的。

Could -- first, I'd like to just clarify.

首先，我想澄清一下。

Did you say you expected mid-25% type growth rate in the remainder of the year?

您是否說過您預計今年剩餘時間的成長率將達到 25% 左右？

Or did you say that you expected the mid-25% type growth rate for the full year?

或者說您預計全年成長率將達到 25% 左右？

I'm not sure I followed the exact language there.

我不確定我是否遵循了那裡的確切語言。

Yes, for the remainder of the year.

是的，今年剩餘時間。

Remainder of the year.

今年剩下的時間。

Great.

偉大的。

Then the question I had for you is, you've had pretty spectacular growth internationally.

那麼我問你的問題是，你們在國際上取得了相當驚人的成長。

It's up in the 80% to 120% range, if I do my math right off of the comments you made about the percentage, 67% in U.S. in the quarter, which implies about 120% growth in the international arenas.

如果我根據您對百分比的評論進行數學計算，則該數字在 80% 到 120% 的範圍內增長，本季度美國為 67%，這意味著國際領域的增長約為 120%。

Can you talk about what's driving that?

您能談談是什麼推動了這個趨勢嗎？

Is that enterprise business that's driving that?

是企業業務推動了這一趨勢嗎？

Is that service provider?

是那個服務商嗎？

Is it cloud growth from the cloud customers in North America moving to international projects?

是北美雲端客戶轉向國際專案帶來的雲端成長嗎？

What's behind that, please?

請問這背後是什麼？

Yes.

是的。

That's a good question, Alex.

這是個好問題，亞歷克斯。

Thank you.

謝謝。

If you will recall, we started to make a lot of international investments, when was it, 2015 to 2016, in that time frame.

如果你還記得的話，我們開始進行大量的國際投資，是在2015年到2016年那個時間內。

And I think we're -- 18 months to 2 years later, we're starting to see the return on that investment.

我認為 18 個月到 2 年後，我們開始看到投資的回報。

And not surprisingly, it mirrors our 5 verticals international -- in the domestic.

毫不奇怪，它反映了我們在國際和國內的 5 個垂直領域。

So some of it is cloud, but we're pleased with the traction we're seeing both in Tier 2 service providers as well as enterprises.

其中一些是雲，但我們對在二級服務提供者和企業中看到的吸引力感到滿意。

So -- and global financials is a good chunk of it too.

因此，全球金融也是其中很大一部分。

So the only vertical that probably there isn't nearly as much of internationally is Tier 2 cloud providers.

因此，國際上唯一可能沒有那麼多的垂直行業是二級雲端提供者。

They exist more in the U.S. than -- the Tier 2 service providers and cloud providers end up being one and the same for many international customers.

它們在美國的存在比二級服務提供者和雲端提供者對許多國際客戶而言最終是同一的。

So that should give you a flavor.

所以這應該會給你一種味道。

And so I think the increased performance is directly correlated to good execution and good planning 18 months ago.

因此，我認為績效的提升與 18 個月前的良好執行和良好規劃直接相關。

Good job, Anshul and Manny.

幹得好，安舒爾和曼尼。

Your next question comes from Paul Silverstein with Cowen and Company.

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

Jayshree, can you hear me now?

傑什裡，你現在聽得到我說話嗎？

Yes, much better.

是的，好多了。

What happened there?

那裡發生了什麼事？

You sounded like you've been gagged.

你聽起來像是被堵住了嘴。

Don't know.

不知道。

I'll keep it simple.

我會保持簡單。

Any change in the pricing environment and in the competitive landscape?

定價環境與競爭格局有何變化？

They're -- and both with respect to commercial merchant vendors like Cisco and Juniper, et cetera, and with respect to white box solutions introduced by any of your customers.

它們既涉及思科和瞻博網路等商業供應商，也涉及您的任何客戶引入的白盒解決方案。

I'll keep my answer simple.

我的答案將保持簡單。

No change in pricing.

定價沒有變動。

And no change in competitive landscape?

競爭格局沒有改變嗎？

The normal aggression in competitive landscape, no change.

競爭格局中正常的攻擊性，沒有變化。

Just continued aggression.

只是繼續侵略。

Jayshree, I apologize, but I just want to make sure I'm clear on this.

Jayshree，我很抱歉，但我只是想確保我清楚這一點。

You're not seeing any incremental pressure from Cisco or others including white boxes?

您沒有看到來自思科或其他公司（包括白盒）的任何增量壓力嗎？

Yes.

是的。

Hold on.

堅持，稍等。

I'll separate the white box question.

我將把白盒子問題分開。

I am not seeing any incremental pressure from my competitors except the normal aggression that I've seen over the last several years and quarters.

除了過去幾年和幾個季度我看到的正常攻擊性之外，我沒有看到來自競爭對手的任何增量壓力。

Specific to white box, this is a customer strategy, not a competitive pressure strategy.

具體到白盒來說，這是一種顧客策略，而不是競爭壓力策略。

As you know, we launched containerized EOS, and we're fully committed to working with our customers on consumption models that can be virtual container or physical.

如您所知，我們推出了容器化 EOS，並且我們完全致力於與客戶合作開發虛擬容器或實體容器的消費模式。

So nothing to do with competition.

所以與競爭無關。

But Jayshree, I appreciate those are customers, but it translates into the same thing, right?

但 Jayshree，我很欣賞這些是客戶，但這代表同樣的事情，對嗎？

To the extent one or more of your customers go to a white box solution, that takes revenue away from you that you could have otherwise accessed.

如果您的一個或多個客戶使用白盒解決方案，您本可以獲得的收入就會被剝奪。

And so again, I apologize, I just want to make sure you're not seeing any incremental uptake of white box solutions by your customers.

再次，我很抱歉，我只是想確保您沒有看到您的客戶對白盒解決方案的任何增量採用。

Just, again, I am not seeing any difference in competitive behavior due to white box.

只是，再次強調，我沒有看到白盒子帶來的競爭行為有任何差異。

And white box adoption, or rather disaggregated EOS, I'm not seeing any shift or change, the same as I told you before.

至於白盒採用，或者更確切地說是分解的 EOS，我沒有看到任何轉變或變化，就像我之前告訴過你的那樣。

Your next question comes from James Fish with Piper Jaffray.

您的下一個問題來自 James Fish 和 Piper Jaffray。

Is Arista winning routing deals as mainly direct replacements today of your competitors?

今天，Arista 是否主要作為競爭對手的直接替代品而贏得路由交易？

Or is that mainly new footprint wins?

或者說這主要是新足跡的勝利？

And Jayshree, you talked last quarter about disrupting the campus, and I think we've gotten a ton of questions around how you're going to do that.

Jayshree，你上個季度談到了擾亂校園的問題，我想我們收到了很多關於你將如何做到這一點的問題。

Any sense -- can you elaborate what the plans are there?

有什麼意義嗎——你能詳細說明一下計劃是什麼嗎？

Okay.

好的。

James, thank you for the question.

詹姆斯，謝謝你的提問。

So on the routing, you've -- question.

所以關於路由，你有一個問題。

As I said before, the first sign that the router market's been going through some tough times is the actual market's been shrinking.

正如我之前所說，路由器市場經歷困難時期的第一個跡像是實際市場一直在萎縮。

And I think part of the reason that it's been shrinking is many of my [competitive vendor] peers have been talking about an architectural shift.

我認為它不斷縮小的部分原因是我的許多[競爭供應商]同行一直在談論架構轉變。

I think it's a shift that's been going on for from 3 to 5 years.

我認為這種轉變已經持續了三到五年。

The last 3 years in switching and now more in the switching side of LANZ.

過去 3 年從事交換工作，現在更多地從事 LANZ 交換方面的工作。

We've been incorporating routing for some time to come, nothing new there.

我們已經整合路由一段時間了，沒什麼新鮮的。

The new change is in the white area side, where more and more of those Ethernet interfaces are moving to Ethernet from traditional SONET or T1 or ATM type of interfaces.

新的變化發生在白色區域一側，越來越多的乙太網路介面從傳統的 SONET 或 T1 或 ATM 類型的介面轉移到乙太網路。

In terms of new footprint versus existing, for us, it's all new.

就新足跡與現有足跡而言，對我們來說，這都是新的。

It's net new, right?

這是全新的，對吧？

And what we see in some cases is the customers looking at a specific routing use case for pairing or edge or core and still keeping their legacy routers.

在某些情況下，我們看到客戶會考慮特定的路由案例來進行配對、邊緣或核心，但仍保留其傳統路由器。

And if there's a complete greenfield opportunity, then it's brand-new footprint, both for the use case and ourselves.

如果有一個完整的綠地機會，那麼對於用例和我們來說，這都是全新的足跡。

And then the campus?

然後是校園？

On the campus.

在校園裡。

I think I said this before, and I'll continue to maintain, Arista does not plan to participate in the traditional campus.

我想我之前就說過了，而且我會繼續堅持，Arista不打算參與傳統校園。

As things evolve in the campus and they become more and more akin or aligned with Arista's different value-add and differentiate-able capabilities, we're open to that.

隨著園區內事物的發展，它們與 Arista 的不同增值和差異化功能變得越來越相似或一致，我們對此持開放態度。

Your next question comes from Simon Leopold with Raymond James.

您的下一個問題來自西蒙·利奧波德和雷蒙德·詹姆斯。

Great.

偉大的。

I wanted to talk a little bit about what happened or what's going on in the cloud vertical.

我想談談雲垂直領域發生的事情或正在發生的事情。

I'm wondering if you experienced any sort of, well, I guess we'd call, catch-up spend in the March quarter or your expectations for the June quarter due to the pause while they were doing the certifications.

我想知道您是否在三月季度經歷過任何形式的追趕支出，或者由於他們進行認證期間的暫停而對六月季度的預期。

If that was the case can you quantify it?

如果是這樣的話，你能量化一下嗎？

And if it wasn't the case, can you help us understand why there wouldn't have been some pent-up demand?

如果情況並非如此，您能否幫助我們理解為什麼不會出現一些被壓抑的需求？

Simon, I wouldn't call it catch-up spend.

西蒙，我不會稱之為追趕支出。

I think we were hurt by the 3 quarters.

我認為我們在第三個季度受到了傷害。

We were harmed in some fashion by slowing down our certifications.

我們因放慢認證速度而受到了某種程度的傷害。

And while the cloud titans waited patiently and completed the certifications, they'll always do a vendor, and I'm sure they bought other gear as well during that time.

雖然雲端巨頭耐心等待並完成了認證，但他們總是會做供應商，我確信他們在那段時間也購買了其他設備。

So I'd say we're back to a new normal business now where we've completed the certifications and now they can deploy Arista more in all of the use cases without having to worry about certifications.

所以我想說，我們現在已經回到了新的正常業務，我們已經完成了認證，現在他們可以在所有用例中部署更多 Arista，而不必擔心認證。

So Anshul, you want to add something there?

Anshul，你想在那裡添加一些東西嗎？

Sure.

當然。

The compute and storage buildouts in the cloud are happening at a steady pace in Q1, for sure, and you can see that as well for our products.

當然，雲端中的運算和儲存擴充在第一季正在穩步進行，您也可以在我們的產品中看到這一點。

In addition to that, nobody's asked so far on the call, but the good news is the cloud customers are no longer constrained on the 100-gig optics.

除此之外，到目前為止還沒有人在電話會議中詢問，但好消息是雲端客戶不再受限於 100 兆光纖。

It's really not related to our certification, just that the rest of the components are also freely available.

這實際上與我們的認證無關，只是其餘組件也可以免費獲得。

So I guess, if there wasn't some catch-up, does this sort of mean that there's opportunities for you to continue registering good sales?

所以我想，如果沒有一些追趕，這是否意味著你們有機會繼續取得良好的銷售表現？

Basically, we won't see a pause in the coming quarters, they're steady as she goes now?

基本上，我們在接下來的幾個季度不會看到暫停，他們像她現在那樣穩定嗎？

Yes, Simon, the way I look at it, and Anshul, correct me if I'm wrong, the pause is in the past.

是的，西蒙，從我的角度來看，安舒爾，如果我錯了，請糾正我，停頓已經過去了。

That's correct.

這是正確的。

And the present and the future look bright.

現在和未來都是光明的。

Your next question comes from Steve Milunovich with UBS.

您的下一個問題來自瑞銀集團的史蒂夫·米盧諾維奇。

Anshul, I wanted to ask you, how sticky are the cloud titan customers?

Anshul，我想問你，雲泰坦的客戶黏性有多大？

I think there's a perception that there's really no loyalty on their part, and if somebody comes in with a better product, that they fairly quickly switch, or at least, in the new buildouts they go a completely different direction, which, given that you've got a high share, could not favor you.

我認為有一種看法是，他們確實沒有忠誠度，如果有人推出了更好的產品，他們很快就會轉變，或者至少在新的擴建中，他們會走向完全不同的方向，考慮到你佔有率很高，不能偏袒你。

But you've worked with these guys for a long time, I know you're expecting to stay ahead, but what's your sense of what the loyalty is and how difficult it would be for them to move to a different vendor.

但您已經與這些人合作了很長時間，我知道您希望保持領先地位，但是您對忠誠度的感覺如何，以及他們轉向其他供應商有多困難。

Sure.

當然。

So that's a loaded question, but I would say the stickiness is not in a given hardware configuration.

所以這是一個有爭議的問題，但我想說的是，黏性並不在於給定的硬體配置。

The stickiness is with the software, how they automate, how they integrate and operationally, and I do believe the stickiness with Arista in the U.S. is very, very strong.

黏性在於軟體、它們如何自動化、如何整合和操作，我確實相信 Arista 在美國的黏性非常非常強。

And this is not a customer base that is using product that we ship as a standard product.

這並不是使用我們作為標準產品提供的產品的客戶群。

This is a customer base that customizes it along with us, and for a reason.

這是一個與我們一起定制的客戶群，並且是有原因的。

And this is not a market where someone shows up next day with a product that is somewhat similar, maybe 1 month ahead of someone else saying I'm ready now.

這不是一個第二天就會有人帶著有點相似的產品出現的市場，也許比其他人提前 1 個月說我現在已經準備好了。

That's not what convinces these customers.

這並不是說服這些客戶的原因。

What convinces them is something that will solve their day-to-day problems in automation or integration or routing or data center interconnect.

令他們信服的是能夠解決自動化、整合、路由或資料中心互連方面日常問題的東西。

And I don't believe that the stickiness that -- the light stickiness you referred to is actually true.

我不相信你提到的那種黏性——光黏性其實是真的。

It's a very strong stickiness with these customers.

對這些客戶的黏性非常強。

But again, tied to the operating system and their automation stack, not just the hardware.

但同樣，與作業系統及其自動化堆疊相關，而不僅僅是硬體。

Your next question comes from Samik Chatterjee with JPMorgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

Jayshree, in your prepared remarks, you mentioned the innovation you're driving under disaggregated software solution with the hyperscalers.

Jayshree，在您準備好的演講中，您提到了您在超大規模的分類軟體解決方案下推動的創新。

So just wanted to see if you can help me think about the road map of monetization of those, and is there applicability of those disaggregated solutions beyond the hyperscalers customers?

所以只是想看看您是否可以幫助我思考這些貨幣化的路線圖，以及這些分類解決方案是否適用於超大規模客戶之外的情況？

Yes, sure.

是的，當然。

No, thanks, Samik.

不，謝謝，薩米克。

The hyperscalers are most advanced in adopting this kind of disaggregated solutions because you really need developers and development engineers.

超大規模企業在採用這種分類解決方案方面最為先進，因為您確實需要開發人員和開發工程師。

So it's more a code development, and therefore, it takes joint work from both sides and joint engineers.

所以它更多的是一個程式碼開發，因此需要雙方和聯合工程師的共同工作。

In terms of monetization, obviously, we work with them closely to monetize both the work we're doing and also other use cases that tie into that.

顯然，在貨幣化方面，我們與他們密切合作，將我們正在做的工作以及與之相關的其他用例貨幣化。

In terms of use cases outside of the cloud titans, I would say they're single-digit customers.

就雲端巨頭以外的用例而言，我想說他們是個位數的客戶。

There are very few that have the capability and the investment to do it.

有能力和投資去做這件事的人很少。

But certainly, we're very open when they come to that category and work with them.

但當然，當他們進入這個類別並與他們合作時，我們非常開放。

But I would say a select few service providers and the large cloud titans are probably the only ones who've shown both the willingness and the capabilities.

但我想說，少數服務供應商和大型雲端巨頭可能是唯一表現出意願和能力的人。

Your next question comes from Mark Kelleher with Davidson.

您的下一個問題來自戴維森的馬克·凱萊赫。

Great.

偉大的。

Most have been asked and answered.

大多數已被詢問和回答。

I just -- could you tell us how many 10% customers you have had in the quarter?

我只是—您能告訴我們本季您有多少 10% 的客戶嗎？

And I know, at the beginning, you mentioned something about customer concentrations.

我知道，一開始您提到了有關客戶集中度的問題。

How many top customers were so much of a percent, if you could just reiterate that, that'd be great.

有多少頂級客戶佔了這麼大的比例，如果你能重申一下，那就太好了。

We don't talk about -- Mark, we don't talk about 10% customer concentration in the quarter, but we'll certainly let you know at the end of the year.

我們不會談論——馬克，我們不會談論本季 10% 的客戶集中度，但我們肯定會在年底讓您知道。

What I did say for the quarter is that there were 5 verticals, and 4 out of the 5 verticals contributed to our top 10 customers, which was cloud titan, enterprises, specialty cloud providers and service providers.

我在本季度所說的是，有 5 個垂直行業，5 個垂直行業中有 4 個為我們的十大客戶做出了貢獻，即雲端巨頭、企業、專業雲端提供商和服務提供商。

Financial was not in our...

財務不在我們的範圍內...

So you can't give us anything on customer concentration in the quarter?

那麼您不能向我們提供有關本季度客戶集中度的任何資訊嗎？

That's what I gave you in my opening remarks, so.

這就是我在開場白中給你們說的。

Your next question comes from George Notter with Jefferies.

你的下一個問題來自傑弗里斯的喬治·諾特。

I guess, I was curious about linearity in the quarter, 39-day DSO calculation.

我想，我對季度 39 天 DSO 計算的線性感到好奇。

And I think you guys are a little odd in that the mix of cloud titans, I understand, is a big driver on that DSO number.

我認為你們有點奇怪，據我所知，雲端巨頭的混合是 DSO 數字的重要驅動因素。

They tend to have longer payment terms, if I remember correctly.

如果我沒記錯的話，他們的付款期限往往較長。

And so you had, an increased mix to cloud titan revenue, yet the DSO calculation is at all-time lows.

因此，雲端巨頭的收入組合有所增加，但 DSO 運算卻處於歷史最低水準。

I'd love to know what's going on with linearity, and can you kind of walk us through the moving parts there?

我很想知道線性度是怎麼回事，您能向我們介紹其中的移動部分嗎？

Yes.

是的。

I mean, I think, if I think about the quarter, the linearity was reasonably consistent, all right?

我的意思是，我認為，如果我考慮一下這個季度，線性度相當一致，好嗎？

We didn't see anything particular different in the quarter.

我們在本季沒有看到任何特別的不同。

I mean, the customer mix is a driver, and yes, that will be kind of varied throughout the quarter, depending on the quarter.

我的意思是，客戶組合是一個驅動因素，是的，在整個季度中，客戶組合會有所不同，具體取決於季度。

But in terms of overall linearity, I mean, it was pretty consistent.

但就整體線性而言，我的意思是，它非常一致。

It's not -- it's a linear business, right, generally on a quarter-by-quarter basis.

它不是——它是一個線性業務，對吧，通常是按季度進行的。

So did you guys do better, then, on collections?

那麼你們在收藏方面做得更好嗎？

Was that the motivator for the big drop in DSOs?

這是 DSO 大幅下降的原因嗎？

Yes, it is timing of billings, I would say.

是的，我想說，這是計費時間。

I think, if I think back to Q4, there were some service renewals that happened at the end of the quarter that would have been sitting in [AR] and we're...

我想，如果我回想第四季度，季度末發生了一些服務續訂，這些服務本來應該放在 [AR] 中，我們...

Q1 wouldn't have been affected by that.

Q1 不會受到影響。

Yes, Q1 wouldn't have been affected by that.

是的，第一季不會受到影響。

So you could parse across this like a lot of different reasons as to why it moves around a little bit, right?

所以你可以像很多不同的原因一樣來解析它為什麼會稍微移動，對嗎？

And then, obviously, we do that as we drive the collections numbers.

然後，顯然，我們在推動館藏數量的同時也這樣做了。

Your next question comes from Tal Liani with Bank of America.

您的下一個問題來自美國銀行的塔爾·利亞尼。

Jayshree, I'll ask a question and you'll yell at me like the Tesla call, and I'm going to be famous after that.

Jayshree，我會問一個問題，你會像特斯拉電話一樣對我大喊大叫，然後我就會出名。

So I'll ask the question.

所以我會問這個問題。

Thanks, Tal.

謝謝，塔爾。

I can't wait to hear the question.

我迫不及待地想聽這個問題。

Okay.

好的。

I'm going to ask you -- just I want to understand what happened last year in 2Q and what happened this year in Q1, and I'll ask it in a certain way.

我要問你——只是我想了解去年第二季發生了什麼，今年第一季發生了什麼，我會以某種方式問。

If I look at Q2, I don't have a problem with growing 25%, Q2, Q3, Q4.

如果我看第二季度，我對成長 25%、第二季、第三季、第四季沒有問題。

So Q3 and Q4, the 25% year-over-year translates into normal sequential growth rates.

因此，第三季和第四季，年比 25% 轉化為正常的環比成長率。

So that means you have tough comps.

所以這意味著你的比賽很艱難。

So the year-over-year goes down, but on a sequential basis, it's normal.

所以同比下降，但從環比來看，這是正常的。

Q2 is too low because it's -- it translates into 7% growth.

第二季太低了，因為它相當於 7% 的成長。

Your guidance is 7% growth sequentially, and that's the lowest growth you have had before.

您的指導是環比增長 7%，這是您之前的最低增長。

And that means that maybe there was some concentration in Q1, maybe some orders fell into Q1 instead of Q2.

這意味著可能有一些集中在第一季度，也許一些訂單落入第一季而不是第二季。

I'm trying to understand, first, going back to last year, the Q2 was giant, right?

我試著去理解，首先，回到去年，第二季是巨大的，對吧？

The 50% -- suddenly accelerated to 50%.

50%——突然加速到50%。

Let's go back and revisit.

我們回去再回顧一下吧。

What happened then that caused it, and what's happening now in Q1?

當時發生了什麼導致了這一情況，第一季現在發生了什麼？

And is there any part that -- or if it is related to product launches, meaning the 7500R.

是否有任何部分 - 或是否與產品發布相關，即 7500R。

And that's why we see this slowdown maybe into Q2 -- not slowdown, but just lower than seasonal sequential.

這就是為什麼我們看到這種放緩可能會持續到第二季​​度——不是放緩，只是低於季節性環比。

Yes, exactly.

對，就是這樣。

I think you're getting -- you're all getting a little spoiled, Tal, when we -- when I have to start defending growth rates at 7% off a very large base to be too low.

我認為你們都有點被寵壞了，塔爾，當我們——當我必須開始捍衛增長率在一個非常大的基數之上的 7% 不至於太低時。

I think you are right to point out that we enjoyed a tremendous amount of confluence of 7500, 100 gig and routing.

我認為您指出我們享受 7500、100 gig 和路由的巨大融合是正確的。

Combined with the law of large numbers, I think we're showing -- we're reflecting our best efforts at a very good Q2 guidance and a very good year, if we execute on all fronts.

結合大數定律，我認為我們正在展示——如果我們在所有方面都執行的話，我們將在非常好的第二季度指導和非常好的一年中反映出我們的最​​大努力。

But remember, if you go back to 2015, '16, we had quarters that were at 7% growth on much lower numbers.

但請記住，如果你回到 2015 年、16 年，我們有幾個季度的成長率為 7%，但數字要低得多。

So I'll try not to disappoint you, Tal, but you should be pleased and proud of us.

所以我會盡量不讓你失望，塔爾，但你應該為我們感到高興和自豪。

I'm not, by the way.

順便說一句，我不是。

This was just a way to open the question.

這只是提出問題的一種方式。

So by no means, no complaints.

所以決不，沒有抱怨。

But if I could go back -- it's not a second question, just go back to it, can you talk about any concentration of the last 4 quarters of a new product and the 7500R, the routing.

但如果我能回去的話——這不是第二個問題，只要回到它，你能談談新產品和 7500R 的最後 4 個季度的集中情況，即路由嗎？

Does it play a big role in this acceleration of growth, and now after 4 quarters, it's slowing down?

它是否在這種加速成長中發揮了重要作用，而現在經過四個季度後，成長正在放緩？

Or was there something else that caused this giant growth in the last 4 quarters?

還是有其他原因導致過去 4 個季度出現如此巨大的成長？

The giant growth was a combination of routing, 100 gigabit, and good cloud spend.

巨大的成長是路由、100Gb 和良好的雲端支出的結合。

And then the enterprise kicked in.

然後企業就開始介入了。

Everything happened perfectly.

一切都發生得很完美。

Yes.

是的。

So if everything happens perfectly, you're right to expect more from us.

因此，如果一切順利，您就可以對我們抱持更高的期望。

Your next question comes from Vijay Bhagavath with Deutsche Bank.

您的下一個問題來自德意志銀行的 Vijay Bhagavath。

Yes, Jayshree, Ita.

是的，Jayshree，伊塔。

Yes, my question, Jayshree, is a bigger-picture question, which is, as the growth rate starts trending in line to investor expectations, any thoughts on M&A and inorganic strategies, put the balance sheet to work, perhaps lever up and then look to chase growth inorganically?

是的，Jayshree，我的問題是一個更大的問題，即隨著成長率開始符合投資者的預期，對併購和無機策略的任何想法，讓資產負債表發揮作用，也許會提高槓桿率，然後看看追求無機成長？

Yes.

是的。

No, good question, Vijay.

不，問得好，維傑。

I think we have been -- I have been personally spending a fair amount of time on strategy and to be thoughtful about this.

我認為我們一直——我個人在戰略上花費了大量時間並對此進行深思熟慮。

It's important.

這一點很重要。

If you just go do an M&A and it doesn't integrate well into our EOS, you can actually set yourself back when you're a fast-growth company.

如果你只是進行併購，而它沒有很好地融入我們的 EOS，那麼當你是一家快速成長的公司時，你實際上可能會陷入困境。

But if you pick the right adjacencies that work with our DNA, works with our culture and actually add upon our growth, that could be a positive.

但如果你選擇了與我們的DNA、我們的文化相適應並真正促進我們成長的正確鄰接關係，那可能是正面的。

So we haven't ruled that out.

所以我們並沒有排除這種可能性。

We continue to look for them.

我們繼續尋找他們。

And as you know, 90% of M&A activities fail, so we want to be in that 10% that make it.

如您所知，90% 的併購活動都會失敗，因此我們希望躋身於成功的那 10% 之列。

So it's a good feedback and good question, and one we'll keep studying.

所以這是一個很好的回饋和很好的問題，我們將繼續研究。

Okay.

好的。

That was our last question.

這是我們最後一個問題。

This concludes the Arista Q1 2018 Earnings Call.

Arista 2018 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 for joining.

感謝您的加入。

Ladies and gentlemen, this concludes today's call.

女士們、先生們，今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。