睿科網路 (ATEN) 2025 Q1 法說會逐字稿

Good day everyone, and welcome to the A10 Network's first-quarter 2025 financial results. (Operator Instructions)

大家好，歡迎閱讀 A10 網路 2025 年第一季財務業績。（操作員指示）

It is now my pleasure to turn the floor over to your host, Tom Baumann. Sir, the floor is yours.

現在我很高興將發言權交給主持人湯姆鮑曼。先生，請您發言。

Thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least one year via the A10 Networks' website at a10networks.com. Hosting the call today are Dhrupad Trivedi, A10's President and CEO; and CFO, Brian Becker.

感謝大家今天的參與。本次電話會議將進行錄音和網路直播，您可以透過 A10 Networks 網站 a10networks.com 觀看至少一年。今天主持電話會議的是 A10 總裁兼執行長 Dhrupad Trivedi 和財務長 Brian Becker。

Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its first-quarter 2025 financial results. Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, presentation, and trended financial statements on the Investor Relations section of the company's website.

在我們開始之前，我想提醒大家，今天收盤後不久，A10 Networks 發布了一份新聞稿，宣布了 2025 年第一季的財務表現。此外，A10 還發布了一份簡報和補充趨勢財務報表。您可以在公司網站的投資者關係部分存取新聞稿、簡報和趨勢財務報表。

During the course of today's call, management will make forward-looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, strategy, potential new products and solutions, our capital allocation strategy, profitability, expenses, and investments, positioning, and our dividend program. These statements are based on current expectations and beliefs as of today, May 1, 2025.

在今天的電話會議中，管理層將做出前瞻性陳述，包括有關未來經營業績、需求、行業和客戶趨勢、策略、潛在新產品和解決方案、我們的資本配置策略、盈利能力、費用和投資、定位以及我們的股息計劃的預測。這些聲明是基於截至 2025 年 5 月 1 日的當前預期和信念。

These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially, and you should not rely on them as a prediction of future events. A10 does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. For a more detailed description of these risks and uncertainties, please refer to our most recent 10-K and quarterly report on Form 10-Q.

這些前瞻性陳述涉及許多風險和不確定性，其中一些是我們無法控制的，可能導致實際結果大不相同，您不應依賴它們作為對未來事件的預測。A10 不打算更新這些前瞻性聲明中包含的信息，無論是由於新信息、未來事件還是其他原因，除非法律要求。有關這些風險和不確定性的更詳細描述，請參閱我們最新的 10-K 表和 10-Q 表季度報告。

Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis and have been adjusted to exclude certain charges. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website.

請注意，除收入外，今天討論的財務指標均基於非 GAAP，並且已進行調整以排除某些費用。非公認會計準則財務指標並非旨在單獨考慮或取代根據公認會計準則編制的結果，並且可能與其他公司提供的非公認會計準則財務指標不同。在今天發布的新聞稿和公司網站上發布的季度財務趨勢報表中可以找到 GAAP 和非 GAAP 指標之間的對帳。

Now I'd like to turn the call over to Dhrupad Trivedi, President and CEO of A10 Networks.

現在我想將電話轉給 A10 Networks 總裁兼執行長 Dhrupad Trivedi。

Thank you, Tom. And thank you all for joining us today. A10's first-quarter financial results demonstrate continued execution as we deliver broad-based growth and solid profitability. Our investments designed to expand our presence and capabilities with enterprise customers are delivering the desired results. And the service provider market, especially in North America, has improved modestly.

謝謝你，湯姆。感謝大家今天的到來。A10 第一季的財務表現表明，我們實現了廣泛的成長和穩健的獲利能力，並持續執行。我們的投資旨在擴大我們在企業客戶中的影響力和能力，並且正在取得預期的效果。服務提供者市場，尤其是北美市場，已經略有改善。

Overall, A10 remains well-positioned, addressing non-discretionary security and capacity requirements with a diversified approach that provides continued durability against ongoing market volatility. Overall, A10 delivered 9% revenue growth year over year. Enterprise revenue grew 18% partly as a result of depressed 2024, and Service Provider revenue increased 3% year on year. More importantly, Enterprise revenue grew 12% on a trailing 12-month basis, providing an increasingly durable foundation for future growth.

總體而言，A10 仍處於有利地位，透過多元化的方式滿足非自由支配的安全和容量需求，從而能夠持續抵禦持續的市場波動。總體而言，A10 的營收年增 9%。企業收入成長 18%，部分原因是 2024 年經濟低迷，服務提供者營收年增 3%。更重要的是，企業收入在過去 12 個月內成長了 12%，為未來的成長奠定了越來越穩固的基礎。

Market trends and global demand is largely unchanged over the last few months. And customers continue to navigate evolving conditions related to higher interest rates and the growing trade policy dynamics in the United States. These various factors are creating friction, impacting order timing. But as I mentioned, our solutions are increasingly non-discretionary and high priority in terms of spending. Our solutions impact capacity and security, so while there may be delays, these delays can usually only be temporary. And over the past few quarters, the overall market conditions have improved and stabilized.

過去幾個月，市場趨勢和全球需求基本上沒有改變。客戶將繼續應對與美國利率上升和貿易政策動態不斷變化相關的不斷變化的條件。這些不同的因素正在產生摩擦，影響訂單時間。但正如我所提到的，我們的解決方案在支出方面越來越具有非自由支配性和高優先級。我們的解決方案會影響容量和安全性，因此雖然可能會出現延遲，但這些延遲通常只是暫時的。過去幾個季度，整體市場狀況已經改善並趨於穩定。

Our service provider customer growth continues to be driven by the demand for greater data center capacity. The rise of AI is only adding to this demand. In addition, AI is power hungry and our solutions provide industry-leading efficiency in terms of throughput and low latency and also include integrated security capabilities enabling high-capacity buildouts with fewer A10 products compared to competitors. As such, we are often designed into large data center projects. This is serving not only as a catalyst for our business, but also a meaningful competitive advantage.

我們的服務供應商客戶成長持續受到對更大資料中心容量的需求的推動。人工智慧的興起只會增加這種需求。此外，人工智慧耗電量龐大，我們的解決方案在吞吐量和低延遲方面提供業界領先的效率，還包括整合的安全功能，與競爭對手相比，可以使用更少的 A10 產品實現高容量擴展。因此，我們經常參與大型資料中心專案。這不僅是我們業務的催化劑，也是有意義的競爭優勢。

We continue to allocate resources to address enterprise customers, and this includes the recent acquisition of the assets and key personnel of ThreatX Protect. This accretive acquisition will expand our cybersecurity portfolio with web application and API protection. Attacks against web applications and application programming interfaces or APIs are on the rise. In particular, these threats are significantly applicable to enterprise. ThreatX Protect provides a unique WAAP solution which harnesses behavioral and risk profiling to help protect enterprises from evolving threats, including threats to AI applications. We believe this capability, which is delivered as a software as a service solution, represents an ideal complement to our existing AI firewall solution. This acquisition is another piece of our strategy to make A10 even more relevant in the enterprise vertical.

我們持續分配資源來滿足企業客戶的需求，其中包括最近收購 ThreatX Protect 的資產和關鍵人員。此次加值收購將擴大我們的網路安全產品組合，包括網路應用程式和 API 保護。針對 Web 應用程式和應用程式介面或 API 的攻擊正在增加。尤其是這些威脅對於企業來說尤其適用。ThreatX Protect 提供獨特的 WAAP 解決方案，利用行為和風險分析來幫助保護企業免受不斷演變的威脅，包括對 AI 應用程式的威脅。我們相信，以軟體即服務解決方案形式提供的此功能是我們現有 AI 防火牆解決方案的理想補充。此次收購是我們策略的一部分，旨在使 A10 在企業垂直領域更具相關性。

We now offer advanced security solutions in a hybrid approach to protect apps and APIs running anywhere from public cloud to the private cloud to co-location facilities or on-prem networks. Our comprehensive A10 Defend portfolio of solutions provides hybrid DDoS protection, DDoS threat intelligence, and web application and bot protection, and now adds a full featured WAAP solution, all integrated into a single platform with end-to-end delivery and stronger security for mission-critical applications.

我們現在以混合方式提供先進的安全解決方案，以保護從公有雲到私有雲到主機託管設施或內部網路的任何地方運行的應用程式和 API。我們全面的 A10 Defend 解決方案組合提供混合 DDoS 保護、DDoS 威脅情報以及 Web 應用程式和機器人保護，現在又添加了全功能 WAAP 解決方案，所有這些都整合到一個平台中，具有端到端交付和更強的關鍵任務應用程式安全性。

I'd note that the growth of AI is driving demand in the Enterprise segment as well. This trend reinforces the benefit of the ThreatX Protect acquisition and underscores our overall strategic position in the market.

我注意到人工智慧的成長也推動了企業領域的需求。這一趨勢強化了收購 ThreatX Protect 的優勢，並強調了我們在市場上的整體策略地位。

I am encouraged by our strategic position. Our presence with enterprise customers is strong and growing, with solutions that are increasingly well-aligned with current and near-term customer needs. Our solutions are also meeting the needs of Tier 1 service providers, and this segment is stabilizing and returning to growth, although with continued short-term volatility.

我們的戰略地位令我感到鼓舞。我們與企業客戶的合作關係日益密切，解決方案也越來越貼合客戶當前和近期的需求。我們的解決方案也滿足了一級服務提供者的需求，儘管短期波動持續存在，但這一領域正在穩定並恢復成長。

We are navigating the ebbs and flows of short-term market volatility with a strong balance sheet, delivering consistent profitability and returning capital to shareholders. As markets stabilize, we are well-positioned to outpace the market in terms of revenue growth and increase our profitability.

我們憑藉強勁的資產負債表應對短期市場波動，提供持續獲利能力並向股東返還資本。隨著市場趨於穩定，我們有能力在收入成長和獲利能力方面超越市場。

With that, I'd like to turn the call over to Brian for a detailed review of the quarter. Brian?

說到這裡，我想把電話轉給布萊恩，讓他對本季進行詳細回顧。布賴恩？

Thank you, Dhrupad. First-quarter revenue was $66.1 million, an increase of 9% year over year. The growth was broad-based, with Enterprise revenue increasing 18% faster than consolidated revenue, and Service Provider revenue increasing 3%. The results reflect the continued normalization of Service Provider spending patterns and the investments we have made in the Enterprise segment.

謝謝你，Dhrupad。第一季營收為6,610萬美元，較去年同期成長9%。成長基礎廣泛，企業收入成長比合併收入快 18%，服務提供者收入成長 3%。結果反映了服務提供者支出模式的持續正常化以及我們在企業領域所做的投資。

We continue to experience quarter-to-quarter volatility in the Service Provider sector. This quarter, North America was relatively strong. Asia Pacific results were impacted on a year-over-year basis, mostly as a result of strong Q1 last year related to large infrastructure projects in Japan. The overall trends are increasingly positive. And our global diversification continues to work in our favor.

我們持續經歷服務提供者領域的季度間波動。本季度，北美表現相對強勁。亞太地區的業績年增受到影響，主要原因是去年第一季日本大型基礎設施項目表現強勁。整體趨勢越來越積極。我們的全球多元化策略持續對我們有利。

Product revenue for the quarter was $36 million, representing 54% of total revenue. Services revenue was $30.2 million or 46% of total revenue. Total deferred revenue was 8% increase to $152.7 million. During 2024, A10 introduced several new products and refreshed certain other products. As a result, we have been entering into large long-term service agreements, typically five years in length compared to three-year terms previously seen.

本季產品收入為 3,600 萬美元，佔總營收的 54%。服務收入為 3,020 萬美元，佔總收入的 46%。總遞延收入成長 8%，達到 1.527 億美元。2024年期間，A10推出了幾款新產品，並更新了某些其他產品。因此，我們一直在簽訂大型長期服務協議，通常為期五年，而以前的期限為三年。

As a result, we are experiencing a short-term impact on our Service revenue as contracts are spread over five years rather than three. However, our long-term deferred revenue is increasing, providing us greater visibility in the future revenues and demonstrating the confidence our customers have in A10 and our solutions as we are designed into longer-term deployments. With the exception of revenue, all the other metrics on this call are on a non-GAAP basis unless otherwise stated. Full reconciliation of GAAP to non-GAAP results are provided in our press release and on our website.

因此，由於合約期限為五年而不是三年，我們的服務收入將受到短期影響。然而，我們的長期遞延收入正在增加，這為我們提供了未來收入的更大可見性，並表明了我們的客戶對 A10 和我們的解決方案的信心，因為我們設計用於長期部署。除收入外，本次電話會議中的所有其他指標均基於非 GAAP 基礎，除非另有說明。我們的新聞稿和網站上提供了 GAAP 與非 GAAP 結果的完整對帳。

Gross margin in the first quarter was 80.9%, in line with our stated goal of 80% to 82%, inclusive of short-term impact from the acquisition of TheatX Protect, which added hosting and support-related costs. Adjusted EBITDA was $19.5 million for the quarter, reflecting 29.5% of revenue. Non-GAAP net income for the quarter was $15 million or $0.20 per diluted share compared to $12.7 million or $0.17 per diluted share in the year-ago quarter. Diluted weighted shares used for computing non-GAAP EPS for the first quarter were approximately 75 million shares, down slightly year over year due to our continued share buyback.

第一季的毛利率為 80.9%，符合我們所述的 80% 至 82% 的目標，其中包括收購 TheatX Protect 的短期影響，這增加了託管和支援相關的成本。本季調整後的 EBITDA 為 1,950 萬美元，佔營收的 29.5%。本季非公認會計準則淨收入為 1,500 萬美元或每股攤薄收益 0.20 美元，去年同期為 1,270 萬美元或每股攤薄收益 0.17 美元。用於計算第一季非公認會計準則每股收益的稀釋加權股份數約為 7,500 萬股，由於我們持續回購股票，較去年同期略有下降。

On a GAAP basis, net income for the quarter was $9.5 million or $0.13 per diluted share compared to net income of $9.7 million or $0.13 per diluted share in the year-ago quarter. During the quarter, we generated $15.2 million in cash from operation. As expected, cash generation normalized in the first quarter in line with historical patterns.

根據 GAAP 計算，本季淨收入為 950 萬美元，即每股攤薄收益 0.13 美元，而去年同期淨收入為 970 萬美元，即每股攤薄收益 0.13 美元。本季度，我們從營運中產生了 1,520 萬美元的現金。正如預期的那樣，第一季的現金產生按照歷史模式恢復正常。

Turning to the balance sheet, as of March 31, 2025, we have $355.8 million in cash, cash equivalents, and marketable securities, compared to $195.6 million at the end of 2024. On March 17, we issued $200 million in convertible senior notes. Shortly after, we issued an additional $25 million to the original purchaser. The notes will accrue interest at a rate of 2.75% per annum, payable semiannually on April 1 and October 1 of each year, beginning on October 1, 2025. The notes will mature on April 1, 2030, unless repurchased earlier, redeemed, or converted. Before December 1, 2029, note holders will have the right to convert their notes only upon the occurrence of certain events.

談到資產負債表，截至 2025 年 3 月 31 日，我們擁有 3.558 億美元現金、現金等價物和有價證券，而 2024 年底為 1.956 億美元。3月17日，我們發行了2億美元的可轉換優先票據。此後不久，我們向原始購買者額外發行了 2500 萬美元。該票據的年利率為 2.75%，自 2025 年 10 月 1 日起每半年支付一次，分別於 4 月 1 日和 10 月 1 日支付。除非提前回購、贖回或轉換，票據將於 2030 年 4 月 1 日到期。2029 年 12 月 1 日之前，票據持有人只有在發生某些事件時才有權轉換其票據。

As a result of this transaction, we ended the quarter with long-term debt of $217.7 million and increased our cash, cash equivalent, and marketable securities to $355.8 million or approximately $4.74 per share.

由於這筆交易，我們在本季末的長期債務為 2.177 億美元，而現金、現金等價物和有價證券增加到 3.558 億美元，或每股約 4.74 美元。

During the quarter, we paid $4.4 million in cash dividends and repurchased $47 million worth of shares. As a result of the debt offering, we used approximately $44.2 million of the net proceeds to repurchase shares of common stock in privately negotiated transactions effected through one of the initial purchasers of the notes or its affiliate, as the company's agent, and repurchase price of $19.55 per share.

本季度，我們支付了 440 萬美元的現金股息，並回購了價值 4,700 萬美元的股票。債務發行的結果是，我們使用了約 4,420 萬美元的淨收益，透過票據的初始購買者之一或其附屬公司（作為公司代理）以私下協商的交易方式回購普通股，回購價格為每股 19.55 美元。

The Board has approved a quarterly cash dividend of $0.06 per share to be paid on June 2, 2025, the shareholders of record on May 15, 2025. We have nearly exhausted our prior $50 million share repurchase authorization as of March 31, but the Board has now authorized a new $75 million share repurchase program. We continue to target gross margins of 80% to 82% and adjusted EBITDA margins of 26% to 28% on a full-year basis.

董事會已批准每股 0.06 美元的季度現金股息，將於 2025 年 6 月 2 日支付給 2025 年 5 月 15 日登記在冊的股東。截至 3 月 31 日，我們先前 5,000 萬美元的股票回購授權已基本用完，但董事會現已批准一項新的 7,500 萬美元股票回購計畫。我們繼續將全年毛利率目標設定為 80% 至 82%，調整後 EBITDA 利潤率目標設定為 26% 至 28%。

I'll now turn the call back over to Dhrupad for closing comments.

現在我將把電話轉回給 Dhrupad 進行最後發言。

Thank you, Brian. A10 continues to deliver solid execution, navigating uncertain times with a strong balance sheet and innovative solutions. We have established a business model that enables us to reallocate resources to address changing market conditions and flex expenses to preserve profitability and shareholder returns. We continue to outperform our PSA and our tight alignment with AI trends positions us for continued success.

謝謝你，布萊恩。A10 持續保持穩健的執行力，憑藉強勁的資產負債表和創新的解決方案度過不確定的時期。我們建立了一種商業模式，使我們能夠重新分配資源以應對不斷變化的市場條件，並靈活調整開支以保持獲利能力和股東回報。我們繼續超越 PSA，並且我們與 AI 趨勢的緊密結合使我們獲得了持續的成功。

Operator, you can now open the call up for questions.

接線員，您現在可以打開電話詢問了。

(Operator Instructions) Gray Powell, BTIG.

（操作員指示）Gray Powell，BTIG。

Okay. Great. Thanks for taking my questions and I'm in the back of a car so hopefully you can hear me okay. Yeah. So I just want to start off with maybe a couple questions around tariffs. I mean, how is the uncertainty there impacting customer conversations in recent weeks? And I guess my general understanding was that like in the week after Liberation Day, a lot of customers, just broadly, not even anything specific, a lot of customers felt like it's almost like going into COVID lockdowns. And in recent weeks, maybe things or tone of conversations has gotten better. So I just love any insights on your discussions during the month of April and if there's any material difference between what you're seeing between service providers and enterprise customers and how they're responding.

好的。偉大的。感謝您回答我的問題，我現在坐在車後座，希望您能聽清楚我的話。是的。因此，我首先想問幾個有關關稅的問題。我的意思是，那裡的不確定性對最近幾週的客戶對話有何影響？我想我的基本理解是，就像在解放日後的一周，很多顧客，只是大致上，甚至沒有任何具體的感覺，很多顧客感覺就像進入了新冠疫情封鎖狀態。最近幾週，情況或談話的氣氛可能已經變得更好了。因此，我很想知道您在四月份的討論中有何見解，以及您所看到的服務提供者和企業客戶之間的情況以及他們的反應是否存在實質差異。

Yeah. Great question, Gray. So I think -- I would say broadly across all customers, from a demand perspective, right, what we are seeing is maybe a little bit different but similar. So in many cases, the phenomenon we see with customers in Asia Pacific or EMEA is while they may not have a direct link to understanding tariff impact being up or down, there is certainly a little more caution because they are concerned about, in the long term, what does that mean for their macroeconomy in two quarters or four quarters or six quarters, right? So there is a little bit more caution particularly on larger SP projects which have a longer horizon for getting the return on investment back.

是的。很好的問題，格雷。所以我認為——從需求的角度來看，對於所有客戶來說，我們看到的可能有點不同但相似。因此，在許多情況下，我們看到亞太地區或歐洲、中東和非洲地區的客戶出現的現像是，雖然他們可能沒有直接了解關稅上漲或下降的影響，但他們肯定會更加謹慎，因為他們擔心從長遠來看，這對他們兩個季度、四個季度或六個季度後的宏觀經濟意味著什麼，對嗎？因此，對於較大的 SP 專案尤其要更加謹慎，因為這些專案需要更長的時間才能收回投資回報。

As it relates to enterprise customers, I would say the concern is a little bit less and then including also I would say US. So for all customers, I think we see two approaches, right? So one is there are some customers who are waiting for July 7, if you will, as sort of a magic date to know what that means and kind of waiting it out to see where it ends up. And we have some customers who are concerned to where they are wondering, if it's better for them to procure a little bit ahead and protect against that, right?

就企業客戶而言，我想說他們的擔憂要少一些，而且我也認為包括美國。所以對於所有客戶，我認為我們看到兩種方法，對嗎？因此，有些客戶正在等待 7 月 7 日，如果你願意的話，將其視為一個神奇的日子，以了解這意味著什麼，並等待看它最終會如何結束。我們有一些客戶擔心，他們想知道，他們是否最好提前採購一點，以防萬一，對嗎？

So I would say net impact for us right now is neutral. But it's hard to say which of those forces is bigger than the other. I would say what is really unknown beyond sort of the tariff, which is a first level input, is how the subcomponent manufacturers who make things like chips, et cetera, will react. So that's an unknown, so can't do much about it. But overall, we are seeing caution in the spending pattern, more so than a complete freeze.

所以我想說，目前對我們來說，淨影響是中性的。但很難說哪一種力量比較大。我想說，除了關稅（一級投入）之外，真正未知的是生產晶片等產品的零件製造商將如何反應。所以這是一個未知數，我們對此無能為力。但整體而言，我們看到支出模式較為謹慎，而不是完全凍結。

Understood. Okay. I really appreciate the transparency there. And just maybe one more question, if I may. What kind of visibility do you have on some of the large customer initiatives to build out AI data centers? And just how should we think about that materializing in the form of incremental demand?

明白了。好的。我真的很欣賞那裡的透明度。如果可以的話，我可能還想再問一個問題。您對一些大型客戶建置人工智慧資料中心的計畫有何了解？那麼，我們該如何看待它以增量需求的形式實現呢？

Sure. So I think I would characterize it as the following. So we are maybe in the first wave of large AI buildouts where the companies who you would expect, right, are building our big data centers as part of their AI initiatives to put in capacity. And that applies to, obviously, public cloud as well as private cloud kind of companies, but also large enterprises doing that.

當然。所以我想我可以將其描述如下。因此，我們可能正處於大規模人工智慧建設的第一波浪潮中，正如您所預料的那樣，那些公司正在建造我們的大數據中心，作為其人工智慧計畫的一部分來提高產能。顯然，這適用於公有雲和私有雲類型的公司，也適用於大型企業。

I would say the visibility we have into that is reasonably good. I think a lot of those companies tend to kind of modulate their plans, however, based on their financials and how they evolve. So a little bit uncertain, but generally understanding of what is their long term play.

我想說我們對此的了解相當透徹。我認為許多公司傾向於根據其財務狀況和發展調整其計劃。所以有點不確定，但總體上了解他們的長期計劃是什麼。

The real value of the market, I think, is going to be in a year to two when enterprise customers are doing more inference models on-prem or private cloud, particularly, outside of US. And I would say in that case, we are engaged with them on that roadmap and rollout. But they are not in the mode of actually building stuff yet, right? But we think that's a bigger, more durable, longer opportunity and are engaged early with a lot of them.

我認為，市場的真正價值將在一到兩年內顯現，屆時企業客戶將在本地或私有雲上進行更多的推理模型，尤其是在美國以外。我想說，在這種情況下，我們會與他們一起制定路線圖和推廣計劃。但他們還沒有真正開始建造東西，對嗎？但我們認為這是一個更大、更持久、更長久的機會，我們很早就開始參與其中。

Understood. Okay. Thank you very much.

明白了。好的。非常感謝。

Christian Schwab, Craig-Hallum.

克里斯蒂安·施瓦布，克雷格·哈勒姆。

Hey guys. Congrats on a solid quarter. Understanding the overall cautious pattern that you're seeing, but yet the outperformance in the current March quarter, are you still anticipating high single-digit revenue growth? Or maybe you weren't anticipating, I guess, that's where the Street's at. Are you comfortable with high single-digit revenue growth for the year in this environment?

嘿，大家好。恭喜本季業績穩健。了解您所看到的整體謹慎模式，但目前 3 月季度的表現優異，您是否仍預期收入將實現高個位數成長？或者也許你沒有預料到，我想，這就是華爾街的現狀。在這種環境下，您是否對今年的高個位數收入成長感到滿意？

Yeah. Thank you, Christian. Good question. So I think as I said before, as it stands now, we are comfortable with that expectation as it stands today. We don't expect that to change a whole lot until maybe we get through July, right? And if there are macro shifts that are different than what we are expecting, that's hard for us or for anybody probably to predict. But outside of anything being very unusual, we expect to be in that similar ballpark, yes.

是的。謝謝你，克里斯蒂安。好問題。所以我認為，正如我之前所說，就目前的情況而言，我們對目前的預期感到滿意。我們預計這種情況可能要到七月才會發生很大變化，對嗎？如果宏觀變化與我們預期的不同，那麼我們或任何人都很難預測。但是，除了任何非常不尋常的情況之外，我們預計情況會大致相同，是的。

Perfect. And then can you just remind us on the competitive front on the data center capacity AI driven product portfolio, who you face most often as far as competition, and does it vary by geography?

完美的。然後，您能否提醒我們，在資料中心容量 AI 驅動的產品組合的競爭方面，您最常面臨的競爭是誰，而這種競爭是否因地理而異？

Yeah. Sure. Good question. I think the competitive dynamic is not that different than the typical data center buildouts. It does vary by geography. And what I mean by that is we are partnering with many of our existing large service provider-type customers, whether it's in Japan or Europe or US and evolving with them as they are building out their own AI data centers, right?

是的。當然。好問題。我認為競爭動態與典型的資料中心建置並沒有太大不同。它確實因地理位置而異。我的意思是，我們正在與許多現有的大型服務提供者類型的客戶合作，無論是在日本、歐洲還是美國，並在他們建立自己的人工智慧資料中心時與他們一起發展，對嗎？

So it's a logical evolution of what they were doing with us. And in that sense, we are not facing kind of a new wave of competitors from a technology provider perspective. I think there's more of the players in, maybe, as it relates to building the physical data centers. But as it relates to the core technology, I think we are not in any different competitive situation. It's just the same differentiation that has helped us before.

所以這是他們對我們所做的事情的合理演變。從這個意義上來說，從科技供應商的角度來看，我們並沒有面臨新一波的競爭對手。我認為，可能有更多的參與者參與建造實體資料中心的計畫。但就核心技術而言，我認為我們的競爭狀況並沒有什麼不同。正是這種區分以前曾對我們有幫助。

Great. No other questions. Thank you.

偉大的。沒有其他問題。謝謝。

Hamed Khorsand, BWS Financial.

Hamed Khorsand，BWS Financial。

Hi. So first off, on the enterprise side, is the growth that you saw this past quarter a dynamic from that large customer or large order you received last year? Or is there something else here that's helping you grow this past quarter?

你好。那麼首先，從企業方面來看，您看到的上個季度的成長是否源自於去年收到的大客戶或大訂單？或者還有其他東西可以幫助您在過去的一個季度中成長？

Yeah. Good question, Hamed. So I would say if you look at our Enterprise revenue by quarter in the trend in numbers, the reason why that percentage looks really big has more to do with a bad or soft Q1 last year. And that's why I think it's more important to see that on a trailing 12-month basis versus the previous 12 months, that revenue is up about 12%.

是的。問得好，哈米德。因此，我想說，如果你從數位趨勢的角度來查看我們按季度劃分的企業收入，你會發現該百分比之所以看起來非常大，更多的是因為去年第一季表現不佳或疲軟。這就是為什麼我認為更重要的是看到過去 12 個月與前 12 個月相比收入增長了約 12%。

So we think that number is more indicative of continued progress. We did get a small follow-on repeat order from what we had talked last year. But that was not a major reason here, right? So we had multiple kind of customers that drove that growth. And then we were comparing it to a soft Q1 last year which made that number look bigger on a Q-over-Q basis. But even on a 12-month basis, I think the 12% is more reflective.

因此我們認為這個數字更能說明持續的進步。根據我們去年的談話，我們確實收到了少量的後續訂單。但這不是主要原因，對吧？因此，我們有多種類型的客戶推動這一成長。然後，我們將其與去年疲軟的第一季進行比較，這使得該數字在環比基礎上看起來更大。但即使以 12 個月計算，我認為 12% 也更能反映情況。

Okay. And then on the service provider side, you were talking about North America being strong, but then you're saying that there's caution. Is there caution among everyone of your customer base within Service Provider or is it just a particular subset?

好的。然後，在服務提供者方面，您談到北美市場表現強勁，但隨後您又說需要謹慎。服務提供者內的所有客戶群是否都保持謹慎，還是只有特定的子集如此？

Yeah. So I would say that Service Provider year over year grew just about 3%, right? I'd say that's better than not growing. But it's not a big number, right? So I would say it is improving and stable in the sense not declining.

是的。所以我想說服務提供者的年成長率只有 3% 左右，對嗎？我想說這比不成長好。但這不是一個很大的數字，對吧？所以我想說它正在改善和穩定，而不是下降。

The caution I would say is broad based, I think there are a few of them who are more bullish, right? But I think the rest are kind of cautionary as it relates to macro conditions and how they evolve. But there are a few who are pretty aggressive in what they're doing, and that has kind of helped us propagate. But when we see the long-term plans, we see stabilization in the sense that most of the customers will spend something this year that we expect. We just don't know exactly which quarter maybe. Yeah.

我想說的是，謹慎是普遍的，我認為他們中的一些人更加樂觀，對嗎？但我認為其餘的都是謹慎的，因為它與宏觀條件及其發展方式有關。但也有少數人非常積極地進行他們的活動，這在某種程度上幫助我們進行宣傳。但當我們看到長期計劃時，我們看到了穩定的跡象，即大多數客戶今年的支出將達到我們預期的水平。我們只是不知道具體是哪個季度。是的。

And lastly, your sales and marketing was down this year, compared to last year. Is there a reason for that or are you just managing costs?

最後，與去年相比，今年你們的銷售和行銷有所下降。這是有什麼原因嗎？還是你只是為了管理成本？

Yeah. I think there's no reason for that. I think we just continue to monitor that in terms of our EBITDA margin. And second, I would say, right, is to do that and continue to invest in new solutions like AI and other things, you can see R&D is up. And so to get to the same EBITDA, right, it has to net out somewhere.

是的。我認為沒有理由這麼做。我認為我們只是繼續監控我們的 EBITDA 利潤率。其次，我想說，對的，就是這樣做，並繼續投資人工智慧和其他新解決方案，你可以看到研發正在增加。因此，為了達到相同的 EBITDA，就必須在某處達到淨額。

Great. Thank you.

偉大的。謝謝。

Simon Leopold, Raymond James.

西蒙李奧波德、雷蒙詹姆斯。

Thank you very much for taking the question. A couple of things I wanted to check on. One was in the prior quarter, you had talked about targeting a full-year EBITDA of 26% to 28%. Certainly, there's a lot of moving parts changing. But just want to check in on how you're feeling about that target today.

非常感謝您回答這個問題。有幾件事我想檢查一下。一是在上一季度，您曾談到全年 EBITDA 目標達到 26% 至 28%。當然，有很多活動部件正在改變。但只是想了解你今天對這個目標的感受。

Yeah. No. Thank you, Simon. I think we feel pretty good about being in that range of EBITDA of 26% to 28%. And the way we think about it is we may face some fluctuation on input costs and so forth with tariffs, and we'll have to manage through that. We'll have to manage OpEx through that. But we are confident and committed to kind of getting to that 26% to 28%.

是的。不。謝謝你，西蒙。我認為我們對 EBITDA 處於 26% 至 28% 的範圍內感到非常滿意。我們的想法是，我們可能會面臨投入成本和關稅等方面的波動，我們必須設法解決這個問題。我們必須透過這種方式來管理營運支出。但我們有信心並致力於實現 26% 至 28% 的目標。

Thanks. And then in terms of your contract manufacturing partners, I think most, if not, all of your exposures to Taiwan, I certainly appreciate the fluidity of the tariff environment. But how do you think about that strategically? I know you can't change overnight. But do you think about trying to diversify? And what would it take to do so?

謝謝。然後就您的合約製造合作夥伴而言，我認為，即使不是全部，大多數您在台灣的業務，我當然也非常欣賞關稅環境的流動性。但從戰略角度您如何看待這個問題？我知道你不可能一夕之間就改變。但您是否考慮過嘗試多元化？那我們需要做些什麼才能做到這一點呢？

Yeah. No. Good question. And I think I would say there are two layers to it. One is as it relates to assembly and manufacturing, you are correct, we are engaged with those partners to understand how to build something more resilient, more flexible footprint globally. Because still, 50% of our business is not to US, right? So that impact is different. And so yeah, absolutely, we are continuing to work and it takes time to requalify the line and things like that, right? But absolutely something we look at.

是的。不。好問題。我認為它有兩個層面。一方面，它與組裝和製造有關，您說得對，我們正在與這些合作夥伴合作，了解如何在全球範圍內建立更具彈性、更靈活的產品。因為我們 50% 的業務仍然不是在美國，對嗎？所以其影響是不同的。是的，我們當然會繼續工作，重新認證生產線和類似的事情需要時間，對嗎？但我們絕對會專注在一些事情上。

The second layer that is a little harder to quantify is within that, right, there is a supply chain where you might be getting chips from a US company or et cetera, right? So in those subcomponent level, it is hard to know where that lands after July and we monitor that. But as it relates to diversity of sourcing and improving that kind of profile for us, absolutely something we are involved in. And we are already looking at that for things like disaster recovery, right? So it's a matter of accelerating some of those initiatives.

第二層比較難量化，其中有一個供應鏈，你可能從美國公司或其他地方取得晶片，對嗎？因此，在這些子組件級別，很難知道 7 月之後的情況，我們對此進行監控。但由於它關係到採購的多樣性以及改善我們的形象，所以我們絕對會參與其中。我們已經在考慮災難復原之類的事情了，對吧？因此，問題在於加速推進其中一些措施。

Thanks. And then just one last one, we've seen quite a bit of movement in exchange rates in the last month or so. Could you help level set how we should think about that because you obviously have a lot of yen exposure and how to quantify that in terms of both the top line as well as operating aspects? Thank you.

謝謝。最後一點，我們看到過去一個月左右匯率出現了相當大的波動。您能否幫助我們確定應該如何考慮這個問題，因為您顯然有很多日元敞口，以及如何從收入和營運方面量化這一點？謝謝。

Yeah. So that's right. I think our business is conducted everywhere in US, except Japan. In Japan, it's in yen. Typically, from a demand perspective, I think we haven't seen a lot of movement because of that reason. I think the projects tend to be more driven by the project timeline and not very, very fluid based on exchange rate going up or down a little bit, right?

是的。沒錯。我認為我們的業務在美國各地開展，除了日本。在日本，以日圓計算。通常，從需求角度來看，我認為由於這個原因，我們沒有看到太多的變化。我認為專案往往更受專案時間表的驅動，而不是根據匯率的上升或下降而發生很大的變化，對嗎？

So certainly, we see that as -- now, of course, that translates to revenue risk for us. And I think about two years ago or three years ago, we don't FX adjust our top line, but we had about 200 basis points impact on growth from the exchange rate. So that's on the top line. We obviously focus on the customer and their project need, and we take that exposure. Below that, I think certainly on contracts we already have and receivables and so forth, we tend to hedge against that so that we are protecting that exposure as much as we can.

因此，我們當然認為這對我們來說意味著收入風險。我認為大約兩年前或三年前，我們沒有根據外匯調整我們的營業收入，但匯率對成長產生了大約 200 個基點的影響。這就是最重要的一點。我們顯然關注客戶及其專案需求，並且我們重視這一點。除此之外，我認為對於我們已經擁有的合約和應收帳款等，我們傾向於對其進行對沖，以便盡可能地保護這些風險。

Thank you very much.

非常感謝。

Hendi Susanto, Gabelli Funds.

Hendi Susanto，Gabelli Funds 基金。

Good afternoon, Dhrupad and Brian. Congrats on positive year-over-year growth.

下午好，Dhrupad 和 Brian。恭喜您實現了同比增長。

Thank you, Hendi.

謝謝你，亨迪。

Dhrupad and Brian, I would like to ask about the product refresh. Brian mentioned that. Can you compare and contrast what the refresh outlook looks like for this year compared to the past and maybe down the road?

Dhrupad 和 Brian，我想詢問有關產品更新的問題。布萊恩提到了這一點。您能否比較一下今年與過去以及未來的更新前景？

Yeah. Good question, Hendi. What I was referring to is normal-cycle product upgrades. So customer buys product and typically would depreciate that product, in our Service Provider segment, between five and seven years. So at some point, the product becomes non-serviceable and no longer performs at the spec. That's the product refresh cycle I was referring to.

是的。問得好，亨迪。我指的是正常週期的產品升級。因此，在我們的服務提供者領域，客戶購買產品後，通常會在五到七年內貶值產品。因此，到了某個時候，產品就會變得無法使用，並且不再符合規格。這就是我所指的產品更新周期。

It wasn't that we suddenly had a revamp of our product line. Nothing like that. It was just normal course of business. It just so happened that there was a pretty significant switch in two product lines at the same time, which usually we stagger over a smaller period. But again, it's normal course of business. Nothing that really changed the outlook from our customer's perspective and really would just be considered as shift from service renewals to product increase.

我們並不是突然對我們的產品線進行了改造。根本不是那樣。這只是正常的業務流程。碰巧的是，兩條產品線同時發生了相當大的轉變，通常我們會在較短的時間內錯開這種轉變。但再說一遍，這是正常的業務流程。從客戶的角度來看，沒有什麼能真正改變前景，而實際上只是從服務更新轉向產品增加。

Yeah. And then the refresh cycle is driven by the customer's usage cycle, not necessarily us making them all change their product, right?

是的。然後更新周期是由客戶的使用週期驅動的，不一定是我們讓他們都改變他們的產品，對嗎？

And then second question, Dhrupad, you mentioned that the longer and bigger opportunity is in the enterprise AI inferencing solutions. And then you made a comment particularly outside of US. May I know why you emphasize opportunity outside of US for the enterprise inferencing?

第二個問題，Dhrupad，您提到更長遠、更大的機會在於企業 AI 推理解決方案。然後你特別針對美國以外發表了評論。請問您為什麼要強調美國以外的企業推理機會？

Sorry. I think the opportunity is equal everywhere. And I think, obviously, the US is a very big market. I think what I was highlighting is that in the US, the market has three or four major players, and that's what everybody does. Outside of the US, many, many of our customers are in countries which have data sovereignty and other data privacy reasons. And for those reasons, they are building private clouds and private LLM. And that is what I meant by being a different type of opportunity versus having to be one of the three guys in the US.

對不起。我認為機會在任何地方都是平等的。我認為，美國顯然是一個非常大的市場。我認為我要強調的是，在美國，市場有三到四個主要參與者，而且每個人都這樣做。在美國以外，我們的許多客戶都位於具有資料主權和其他資料隱私原因的國家。基於這些原因，他們正在建構私有雲和私有 LLM。這就是我所說的不同類型的機會，而不是必須成為美國那三個人之一。

And then last question for me, if there's any tariff impact and then you need to negotiate price with the customers, like the choice between new pricing or absorbing that, how should we think about the likely scenarios?

然後我的最後一個問題是，如果有任何關稅影響，然後您需要與客戶協商價格，例如在新定價或吸收定價之間做出選擇，我們應該如何考慮可能的情況？

I mean, I think that's a very, very difficult question we have a perfect answer for. So certainly, I think our expectation is if there is tariff impact, we would work with our customers to figure out how to share that. And it's somewhere between 100% and 0%, right, that they would share. And I think we would need to have a better view after July or whenever to be able to have those conversations. Because today, we don't know if that impact is going to be 0%, 30%, or 150%, so it's hard to actually have those conversations.

我的意思是，我認為這是一個非常非常困難的問題，我們對此有一個完美的答案。因此，我認為我們的預期是，如果有關稅影響，我們將與客戶合作，找出如何分擔這種影響。他們分享的比例在 100% 到 0% 之間，對吧。我認為我們需要在七月之後或任何時候有更好的視角才能進行這些對話。因為今天，我們不知道這種影響是 0%、30% 還是 150%，所以實際上很難進行這些對話。

But of course, our goal will be that because the nature of our customers is also one where they are very worried about performance of the network. They want to make sure, of course, that A10 can continue to invest in R&D and drive more innovation, versus buying the lowest cost commodity on the market, right?

但當然，我們的目標是，因為我們的客戶也非常擔心網路的效能。當然，他們想確保 A10 能夠繼續投資研發並推動更多創新，而不是購買市場上成本最低的商品，對嗎？

So we think that's the profile of our customers. That's our company profile. So we would jointly solve that problem once we know what the problem is.

我們認為這就是我們客戶的概況。這就是我們的公司簡介。因此，一旦我們知道問題是什麼，我們就會共同解決這個問題。

Thank you, Dhrupad and Brian.

謝謝你，Dhrupad 和 Brian。

Thank you. That concludes our Q&A session. I will now hand the conference back to Dhrupad Trivedi for closing remarks. Please go ahead.

謝謝。我們的問答環節到此結束。現在，我將會議交還給 Dhrupad Trivedi 並請他致閉幕詞。請繼續。

Thank you. And thank you to all of our shareholders and employees for joining us today and for your ongoing support. Thanks.

謝謝。感謝所有股東和員工今天的到來以及你們一直以來的支持。謝謝。

Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

謝謝。各位，今天的活動就到這裡了。現在您可以斷開連接並享受美好的一天。感謝您的參與。