博通 (AVGO) 2019 Q3 法說會逐字稿

Welcome to Broadcom Inc.'s Third Quarter Fiscal Year 2019 Financial Results Conference Call.

歡迎參加 Broadcom Inc. 2019 財年第三季財務業績電話會議。

At this time, for opening remarks and introductions, I would like to turn the call over to Beatrice Russotto, Director of Investor Relations of Broadcom Inc.

現在，我想將電話轉給博通公司投資者關係總監 Beatrice Russotto，以進行開場演講和介紹。

Please go ahead, ma'am.

請繼續，女士。

Thank you, operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

Joining me today are Hock Tan, President and CEO; and Tom Krause, Chief Financial Officer of Broadcom.

今天與我一起出席的還有總裁兼執行長 Hock Tan；以及博通財務長湯姆·克勞斯 (Tom Krause)。

After the market closed today, Broadcom distributed a press release and financial tables describing our financial performance for the third quarter of fiscal year 2019.

今天收盤後，博通發布了一份新聞稿和財務表格，描述了我們 2019 財年第三季的財務表現。

If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com.

如果您沒有收到副本，您可以從 Broadcom 網站 Broadcom.com 的投資者部分獲取資訊。

This conference call is being webcast live, and a recording will be available via telephone playback for 1 week.

本次電話會議正在進行網路直播，錄音將透過電話播放 1 週。

It will also be archived in the Investors section of our website at broadcom.com.

它還將存檔在我們網站 Broadcom.com 的投資者部分。

During the prepared comments section of this call, Hock and Tom will be providing details of our third quarter fiscal year 2019 results, guidance for fiscal year 2019 and commentary regarding the business environment.

在本次電話會議的準備評論部分，Hock 和 Tom 將提供 2019 財年第三季業績的詳細資訊、2019 財年的指導以及有關商業環境的評論。

We will take questions after the end of our prepared comments.

我們將在準備好的意見結束後回答問題。

Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call.

請參閱我們今天的新聞稿以及我們最近向美國證券交易委員會提交的文件，以了解可能導致我們的實際結果與本次電話會議中所做的前瞻性聲明存在重大差異的具體風險因素的資訊。

In addition to U.S. GAAP reporting, Broadcom reports certain financial measures on a non-GAAP basis.

除了美國公認會計原則報告外，博通還根據非公認會計原則報告某些財務指標。

A reconciliation between GAAP and non-GAAP measures is included in the tables attached to today's press release.

今天新聞稿所附的表格中包含了公認會計原則和非公認會計原則措施之間的調節。

Comments made during today's call will primarily refer to our non-GAAP financial results.

今天電話會議期間發表的評論將主要涉及我們的非公認會計準則財務表現。

I'll now turn the call over to Hock.

我現在將把電話轉給霍克。

Thank you, Bea.

謝謝你，碧。

Good afternoon, everyone, and thank you for joining us today.

大家下午好，感謝您今天加入我們。

Looking at the third quarter.

看看第三季。

Consolidated net revenue was $5.5 billion, a 9% increase from a year ago.

合併淨收入為 55 億美元，比去年同期成長 9%。

Semiconductor solution revenue was $4.4 billion, down 5% year-on-year and up 6% quarter-over-quarter.

半導體解決方案營收為 44 億美元，年減 5%，季增 6%。

Networking continued to perform well driven by strong demand for our merchants switching and routing platforms.

由於對我們的商家交換和路由平台的強勁需求，網路持續表現良好。

And as we also expected, shipments of custom silicon solutions in AI, Smart NIC and video transcoding to cloud data centers were strong.

正如我們所預期的那樣，人工智慧、智慧網路卡和視訊轉碼領域的客製化晶片解決方案向雲端資料中心的出貨量強勁。

Wireless is, of course, seeing the beginning of a typical seasonal uptick and the initial positive effects of increased content.

當然，無線網路正在經歷典型的季節性成長，內容增加也產生了初步的正面影響。

These tailwinds were partially offset by weaker demand in storage and broadband.

這些有利因素被儲存和寬頻需求疲軟部分抵消。

Revenue for infrastructure software was $1.1 billion.

基礎設施軟體收入為 11 億美元。

The CA business is running above our expectation, benefiting from sustained enterprise demand for our mainframe and distributed software.

CA 業務的運作超出了我們的預期，受益於企業對我們的大型主機和分散式軟體的持續需求。

However, SAN switching demand has paused as our partner OEM supply chain compressed in these uncertain conditions.

然而，由於我們的合作夥伴 OEM 供應鏈在這些不確定的條件下受到壓縮，SAN 交換需求已暫停。

Now let me address the current environment and outlook.

現在讓我談談當前的環境和前景。

Enterprise and mainframe software customer demand continues to remain stable, particularly in North America and Western Europe.

企業和大型主機軟體客戶需求持續保持穩定，特別是在北美和西歐。

SAN switching demand will likely continue to be down another quarter while inventory in the OEM channels are being worked down.

SAN 交換需求可能會在下一個季度繼續下降，同時 OEM 通路的庫存正在減少。

As it relates to semiconductors, although the U.S.-China trade conflict continues, we have not seen further deterioration in our business, both specific to China as well as globally.

就半導體而言，儘管中美貿易衝突仍在繼續，但我們的業務並未進一步惡化，無論是針對中國還是全球。

Accordingly, we continue to expect to achieve over $22.5 billion of revenue in fiscal 2019, including $17.5 billion from semiconductor solutions and $5 billion from infrastructure software.

因此，我們繼續預期 2019 財年將實現超過 225 億美元的收入，其中 175 億美元來自半導體解決方案，50 億美元來自基礎設施軟體。

Looking to next year.

展望明年。

Infrastructure software is stable as renewals among our core customer base continue to be very solid.

由於我們的核心客戶群的更新繼續非常穩固，基礎設施軟體很穩定。

However, visibility continues to be very limited on the semiconductors side so we are managing the business with an expectation that we will continue to operate in a very low growth, uncertain macro environment for the foreseeable future.

然而，半導體方面的能見度仍然非常有限，因此我們在管理業務時預計，在可預見的未來，我們將繼續在成長非常低、不確定的宏觀環境中運作。

Fortunately, the fundamentals of our semiconductor business remain strong.

幸運的是，我們半導體業務的基本面依然強勁。

As you know, our business is all about connectivity from CPUs to memory in data centers, core to edge in networks, central office to client devices in distributed systems.

如您所知，我們的業務全部涉及從 CPU 到資料中心記憶體、網路核心到邊緣、分散式系統中中央辦公室到客戶端設備的連接。

And here we continue to benefit from the underlying trend in the IT world an insatiable need for increasing bandwidth to connect things.

在這裡，我們繼續受益於 IT 世界的基本趨勢，即對增加連接事物的頻寬的永不滿足的需求。

In data centers, Tomahawk switching have gone from 3.2 terabits per second just 3 years ago to 12.8 terabits per second today.

在資料中心，Tomahawk 交換速度已從 3 年前的每秒 3.2 太比特增加到今天的每秒 12.8 太比特。

In cloud computing, as the limits to Moore's Law constrained CPU and GPU performance, the pipes linking computing cycles to the network and storage expense.

在雲端運算中，由於摩爾定律的限制限制了CPU和GPU的效能，連接運算週期與網路和儲存費用的管道。

PCI Express Gen 4 today at 16G replaces Gen 3 with the likes of next-generation Rome CPU.

如今，16G 的 PCI Express Gen 4 以下一代 Rome CPU 等產品取代了 Gen 3。

Legacy network interface controllers, NICs as they say, are becoming really intelligent, what we now call Smart NICs, and take on the task of accelerating workloads, offload from non-optimized CPU within cloud computing.

傳統網路介面控制器（俗稱 NIC）正在變得真正智能，我們現在稱之為智能 NIC，並承擔加速工作負載、卸載雲端運算中非最佳化 CPU 的任務。

Even in SAN, that's storage area network, Fibre Channel progresses its bandwidth at 32 gigabit per second in Generation 6 today to Generation 7 at 64 gigabit per second next year to reap the full benefit of all-flash arrays in enterprise storage.

即使在 SAN（即儲存區域網路）中，光纖通道的頻寬也從今天的第 6 代每秒 32 GB 提升到明年的第 7 代每秒 64 GB，以獲得企業儲存中全快閃陣列的全部優勢。

And to truly connect computer storage, replacing direct attach copper, fiber optics running in 100 gig -- 100G channels are moving to 400G as hyper cloud -- our hyper cloud customers scale out data centers with Tomahawk 3 today.

為了真正連接電腦存儲，取代直連銅纜，以 100 GB 運行的光纖——100G 通道正在遷移到 400G 作為超級雲端——我們的超級雲端客戶今天使用 Tomahawk 3 擴展資料中心。

Turning to telco networks.

轉向電信網路。

Call routing has gone from 1.6 terabits per second a few years ago to 9.6 terabits as represented by our Jericho 2 router today.

呼叫路由已從幾年前的每秒 1.6 太比特提高到今天的 Jericho 2 路由器所代表的 9.6 太比特。

In broadband, cable modem with DOCSIS 3.0 at 1 gigabit today will move to DOCSIS 4.0 at 10 gigabits over the next few years as cable operators need to compete against 5G networks.

在寬頻領域，由於有線電視營運商需要與 5G 網路競爭，目前採用 1 GB 速率的 DOCSIS 3.0 纜線數​​據機將在未來幾年內轉向 10 GB 速率的 DOCSIS 4.0。

So it is with DSL, digital subscriber line, we're at a near 500 megabit per second of dataflow today.

DSL（數位用戶線路）也是如此，今天的資料流速度接近每秒 500 兆位元。

We will upshift to over 1 gigabit per second in G.fast, which may seem inadequate, so we need GPON at 2.5 gigabits.

我們將在 G.fast 中提升到每秒 1 吉比特以上，這似乎不夠，因此我們需要 2.5 吉比特的 GPON。

And even with that, we're poised today to launch into mass markets with 10G xPON.

即便如此，我們今天仍準備將 10G xPON 推向大眾市場。

Of course, wireless connectivity too has seen the most headline.

當然，無線連線也成為了最受關注的話題。

And in enterprise access gateways, the protocol has moved from 802.11ac to the new OFDMA-enabled 802.11ax, otherwise called WiFi 6. And we are at the cusp of cellular communication migrating from 4G to next-generation 5G in radio access networks and smartphones.

在企業存取網關中，協定已從 802.11ac 遷移到支援 OFDMA 的新 802.11ax，也稱為 WiFi 6。

We are enabling these fundamental trends in the marketplace.

我們正在推動市場的這些基本趨勢。

This gives us confidence that we will continue to sustain and grow our semiconductor business over the long term.

這讓我們有信心繼續長期維持和發展我們的半導體業務。

Moving on, let's talk about software.

繼續，我們來談談軟體。

First, the CA.

首先，CA。

As we mentioned, our model for CA is to focus on the 500 largest enterprises in the world, the biggest users of our infrastructure software.

正如我們所提到的，我們的 CA 模式是專注於全球 500 家最大的企業，他們是我們基礎設施軟體的最大用戶。

Based on experience through fiscal third quarter 2019, we expect our core customer business that's up for renewal in fiscal year 2019 to grow over 20%.

根據截至 2019 財年第三季的經驗，我們預計 2019 財年更新的核心客戶業務將成長 20% 以上。

Meanwhile, the attrition rate of business from the long tail of customers behind this core group is anticipated to be over 10% for fiscal 2019.

同時，預計2019財年該核心族群背後的長尾客戶業務流失率將超過10%。

We have another 2-plus years to turn over the CA customer contract, but based on the trends of renewal growth from these core customer base in excess of the attrition of noncore business over the last 9 months, we're confident that we can meet, if not exceed, the long-term revenue and profitability targets that we laid out for CA to you last year when we acquired that business.

我們還有兩年多的時間來交接 CA 客戶合同，但根據過去 9 個月這些核心客戶群的續約增長超過非核心業務的損耗的趨勢，我們有信心能夠滿足，如果沒有超過，我們去年收購CA 業務時為您設定的長期收入和獲利目標。

Our integration activity is largely complete with operating expenses to support CA approaching target levels.

我們的整合活動已基本完成，營運費用已用於支援 CA 接近目標水準。

Finally, let me take a few more minutes to talk about our planned acquisition of the Symantec enterprise business announced in August.

最後，讓我再花幾分鐘談談我們八月宣布的收購賽門鐵克企業業務的計畫。

Acquiring Symantec furthers our efforts to build one of world's leading infrastructure technology platforms.

收購賽門鐵克將進一步推動我們打造世界領先的基礎設施技術平台之一。

It is the logical next step in Broadcom's infrastructure software strategy and adds $160 billion cybersecurity market to the Broadcom's addressable TAM.

這是 Broadcom 基礎設施軟體策略中合乎邏輯的下一步，並將為 Broadcom 的可尋址 TAM 增加 1,600 億美元的網路安全市場。

We will gain a portfolio of mission-critical security solutions that are deeply embedded among our core customers.

我們將獲得一系列深深植根於我們核心客戶之中的關鍵任務安全解決方案組合。

There will be meaningful cross-selling opportunities with Brocade and CA solutions, and we believe this acquisition will enable Broadcom to gain a larger share of the wallet of these core customers, and we expect this transaction to add more than $2 billion of sustainable run rate revenue with its leading franchises in cybersecurity, and we also expect to achieve in excess of $1 billion in run rate cost synergies within 12 months post close.

博科和CA解決方案將存在有意義的交叉銷售機會，我們相信此次收購將使博通能夠在這些核心客戶的錢包中獲得更大份額，我們預計此次交易將增加超過20億美元的可持續運行率其在網路安全領域領先的特許經營權將帶來收入，我們也預計在交易完成後 12 個月內實現超過 10 億美元的運行率成本協同效應。

And importantly, this transaction gives us the opportunity to achieve our ongoing financial objective of double-digit cash on cash returns.

重要的是，這項交易使我們有機會實現兩位數現金回報的持續財務目標。

The integration planning process is well underway.

整合規劃過程正在順利進行中。

And as you likely saw, we cleared HSR last week.

正如您可能看到的，我們上週清除了 HSR。

We remain on track to close the transaction in the first quarter of fiscal 2020 subject to anti-trust approvals in the European Union and Japan as well as, of course, customary closing conditions.

我們仍有望在 2020 財年第一季完成交易，但須獲得歐盟和日本的反壟斷批准，當然還有慣例成交條件。

To sum, a broad and increasingly diversified portfolio of leadership, technology franchises has allowed us today to sustain revenue and increase cash flows even in this challenging market environment.

總而言之，廣泛且日益多元化的領導力、技術特許經營組合使我們今天即使在充滿挑戰的市場環境下也能維持收入並增加現金流。

Now let me turn this call over to Tom.

現在讓我把這通電話轉給湯姆。

Thank you, Hock.

謝謝你，霍克。

Consolidated net revenue for the third quarter was $5.5 billion, a 9% increase from a year ago.

第三季綜合淨收入為 55 億美元，比去年同期成長 9%。

The semiconductor solutions segment revenue was $4.4 billion and represented 79% of our total revenue this quarter.

半導體解決方案部門營收為 44 億美元，佔本季總營收的 79%。

This is down 5% year-on-year on a comparable basis.

以可比較口徑計算，較去年同期下降 5%。

Our infrastructure software segment revenue was $1.1 billion and represented 21% of revenue.

我們的基礎設施軟體部門收入為 11 億美元，佔收入的 21%。

Free cash flow was 42% of revenue or $2.31 billion and grew 8.5% year-over-year.

自由現金流佔營收的 42%，即 23.1 億美元，年增 8.5%。

Let me now provide additional detail on our financial performance.

現在讓我提供有關我們財務業績的更多詳細資訊。

Operating expenses were $1.01 billion driven by further reductions from CA-related activities.

由於 CA 相關活動進一步減少，營運支出為 10.1 億美元。

Operating income from continuing operations was $2.91 billion and represented 52.8% of net revenue.

持續經營業務的營業收入為 29.1 億美元，佔淨收入的 52.8%。

Adjusted EBITDA was $3.06 billion and represented 55.6% of net revenue.

調整後 EBITDA 為 30.6 億美元，佔淨收入的 55.6%。

This figure excludes $141 million of depreciation.

該數字不包括 1.41 億美元的折舊。

In terms of working capital, our payables increase of $237 million was somewhat offset by receivables increase of $55 million and an inventory increase of $57 million from the prior quarter.

就營運資本而言，我們的應付帳款增加 2.37 億美元，但在一定程度上被應收帳款增加 5,500 萬美元和庫存增加 5,700 萬美元所抵銷。

I would also note that we accrued $110 million of restructuring and integration expenses and made $164 million of cash restructuring and integration payments in the quarter.

我還要指出的是，本季我們累計了 1.1 億美元的重組和整合費用，並支付了 1.64 億美元的現金重組和整合付款。

Finally, we spent $112 million on capital expenditures.

最後，我們在資本支出上花了 1.12 億美元。

In the third quarter, we returned $2 billion to stockholders consisting of $1.1 billion in the form of cash dividends and $977 million for the repurchase and elimination of 3.5 million AVGO shares.

第三季度，我們向股東返還了 20 億美元，其中 11 億美元以現金股利的形式，9.77 億美元用於回購和註銷 350 萬股 A​​VGO 股票。

We ended the quarter with $5.5 billion of cash, $37.6 billion of total debt, 398 million outstanding shares and had 442 million fully diluted shares for the quarter.

本季末，我們擁有 55 億美元現金、376 億美元總債務、3.98 億股流通股，並擁有 4.42 億股完全稀釋股票。

Turning to our fiscal year 2019 guidance.

轉向我們的 2019 財年指導。

As Hock discussed, we are maintaining our full year revenue guidance of $22.5 billion including approximately $17.5 billion from semiconductor solutions and approximately $5 billion from infrastructure software.

正如 Hock 所討論的，我們維持 225 億美元的全年收入指引，其中包括來自半導體解決方案的約 175 億美元和來自基礎設施軟體的約 50 億美元。

IP licensing is not expected to generate a material amount of revenue.

知識產權許可預計不會產生大量收入。

On a non-GAAP basis, operating margins are expected to be approximately 52.5%.

以非公認會計準則計算，營業利潤率預計約 52.5%。

Net interest expense and other is expected to be approximately $1.3 billion.

淨利息支出及其他預計約為 13 億美元。

The tax rate is forecasted to be approximately 11%.

預計稅率約為11%。

Depreciation is expected to be approximately $600 million.

折舊預計約 6 億美元。

CapEx is expected to be approximately $500 million.

資本支出預計約 5 億美元。

As a result, free cash flow is expected to be approximately $9 billion, which does take into account projected restructuring and integration charges of approximately $1.1 billion.

因此，自由現金流預計約為 90 億美元，其中考慮了預計約 11 億美元的重組和整合費用。

Note, as of the end of the third quarter, $6.9 billion of free cash flow has been generated and includes $969 million of restructuring and integration charges.

請注意，截至第三季末，已產生 69 億美元的自由現金流，其中包括 9.69 億美元的重組和整合費用。

Stock-based compensation expense is expected to be approximately $2.2 billion, and finally, we expect average diluted share count to be 440 million for Q4, and this excludes any impact from share buybacks and eliminations.

基於股票的補償費用預計約為 22 億美元，最後，我們預計第四季度平均稀釋後股票數量為 4.4 億股，這不包括股票回購和註銷的任何影響。

Now onto capital allocation.

現在進行資本配置。

As many of you know, Broadcom has a business model that generates a very healthy amount of free cash flow across an increasingly diverse and stable set of mainly infrastructure technology franchises.

正如許多人所知，博通的商業模式可以在日益多樣化和穩定的主要基礎設施技術專營權中產生非常健康的自由現金流。

Over the last few years, we have worked to create a more transparent and balanced capital allocation policy.

過去幾年，我們致力於制定更透明、更平衡的資本配置政策。

First and foremost, we have committed to return half of our free cash flow to shareholders each year in the form of cash dividends.

首先也是最重要的是，我們承諾每年以現金股利的形式將一半的自由現金流回饋給股東。

In essence, this allows the AVGO stockholder to decide how best to reinvest 50% of the free cash flow that we generate.

從本質上講，這使得 AVGO 股東能夠決定如何最好地將我們產生的 50% 的自由現金流進行再投資。

In return, we have, in effect, asked the Broadcom stockholder to put trust in management, to optimally reinvest the remainder of the free cash flow after the dividend is distributed.

作為回報，我們實際上要求博通股東信任管理層，以便在股息分配後對剩餘的自由現金流進行最佳再投資。

Fundamentally, we think that we have a unique M&A strategy that allows us to consistently reinvest these excess cash flows that will drive returns well above our free cash flow yields.

從根本上說，我們認為我們擁有獨特的併購策略，使我們能夠持續對這些多餘的現金流進行再投資，從而使回報率遠高於我們的自由現金流收益率。

Over the past few years, we've developed a road map primarily around infrastructure software starting with Brocade and then with CA and now Symantec that will allow us to continue to execute on the strategy for many years to come.

在過去的幾年裡，我們主要圍繞基礎設施軟體製定了路線圖，從博科開始，然後是 CA，現在是賽門鐵克，這將使我們能夠在未來的許多年裡繼續執行該策略。

So going forward, our plan is to use this excess cash for acquisitions and/or to pay down debt that we borrow to make these acquisitions.

因此，展望未來，我們的計劃是使用這些多餘的現金進行收購和/或償還我們為進行這些收購而藉入的債務。

Now over the last year or so, we have bought back a lot of stock.

現在在過去一年左右的時間裡，我們已經回購了許多股票。

We had an opportunity to buy stock at depressed prices following the CA announcement.

在 CA 公告發布後，我們有機會以低迷的價格購買股票。

We also want to limit the dilution from the onetime multiyear grant we did earlier this year.

我們還希望限制今年早些時候提供的一次性多年期贈款的稀釋作用。

In all, we have invested $13.1 billion to repurchase or eliminate a total of 54.5 million shares at an average price of approximately $240 per share over the last 16 months through the end of our fiscal Q3 '19.

截至 2019 年第三財季結束的過去 16 個月裡，我們總共投資了 131 億美元，以每股約 240 美元的平均價格回購或淘汰了總計 5,450 萬股股票。

So in summary, we think this decision made a lot of sense.

總而言之，我們認為這個決定非常有意義。

That being said, maintaining our core and capital allocation strategy of dividends and M&A while pursuing meaningful buybacks in parallel has caused us to increase our leverage and leverage multiples pretty substantially.

話雖這麼說，維持我們的股息和併購的核心和資本配置策略，同時追求有意義的回購，使我們大幅提高了槓桿率和槓桿倍數。

Especially in light of the weak macro environment we are seeing today, we are conscious of the risk that a more levered balance sheet creates and are very focused on managing those risks.

特別是考慮到我們今天看到的疲軟的宏觀環境，我們意識到資產負債表槓桿化帶來的風險，並非常注重管理這些風險。

As a result, we have started to transition our focus to deleveraging the balance sheet following the recent Symantec acquisition announcement.

因此，在最近宣布收購賽門鐵克之後，我們開始將重點轉向資產負債表去槓桿化。

That concludes my prepared remarks.

我準備好的發言就到此結束。

(Operator Instructions) Operator, please open up the call for questions.

（接線生說明）接線員，請撥打電話詢問問題。

(Operator Instructions) Our first question comes from the line of Harlan Sur of JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Harlan Sur。

Good to see the business bottoming here in the second half of the year.

很高興看到下半年業務觸底。

Hock, we continue to hear that Tomahawk 3, Jericho 2 are seeing strong demand for the 200 and 400 gig cloud networking adoption.

Hock，我們不斷聽說 Tomahawk 3、Jericho 2 看到了對 200 和 400 gig 雲端網路採用的強勁需求。

Also your revenue and design win pipeline on compute, networking and security offload acceleration, ASICs is pretty strong with guys like Google, Facebook, Microsoft, et cetera.

此外，您的收入和設計在運算、網路和安全卸載加速方面贏得了管道，ASIC 在 Google、Facebook、微軟等公司中表現相當強勁。

Last earnings call, you had anticipated full year double-digits growth in your data center networking, compute offload businesses.

在上次財報電話會議上，您預計資料中心網路、計算卸載業務將全年實現兩位數成長。

The question is are you still tracking to that?

問題是你還在追蹤嗎？

And despite the muted growth outlook for the overall business looking into next year, given your design win pipeline, do you expect continued double-digit growth in the data center networking and compute offload looking into next year as well?

儘管明年整體業務成長前景黯淡，但考慮到您的設計贏得管道，您是否預計明年資料中心網路和運算卸載也將持續兩位數成長？

I guess the bottom line answer is our outlook, which we shared with you much earlier on, has not changed materially at all.

我想最重要的答案是我們的前景，我們很早就與您分享了這一點，但根本沒有重大變化。

Yes, we do see continuing improve -- ramp of ship, deliveries into hyper cloud guys on those various networking as well as computing offload silicon.

是的，我們確實看到了持續的改進——船舶的爬升、向各種網路以及計算卸載晶片上的超級雲端人員的交付。

And that hasn't changed, and that has in fact given quite a lot of buffer to otherwise been a fairly uncertain and difficult market at this point.

這並沒有改變，事實上，這為目前相當不確定和困難的市場提供了相當大的緩衝。

Our next question comes from Vivek Arya of Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

Hock, you started mentioning something about next year, and I just wanted to flesh that out.

霍克，你開始提到明年的一些事情，我只是想充實一下。

I know you're not giving next year guidance per se, but on the positive side, you're saying business is bottoming.

我知道您本身並沒有給出明年的指導，但從積極的一面來看，您說業務正在觸底。

You outlined a number of product cycles or so, but then you sound a little bit cautious on just the environment.

您概述了一些產品週期左右，但您聽起來對環境有點謹慎。

So I was curious how you're thinking conceptually about next year, pluses and minuses.

所以我很好奇你如何從概念上思考明年的優點和缺點。

And then as part of that, if you could also give us some indication of how Huawei figures into that, both kind of in the near term Q4 and next year.

作為其中的一部分，您是否也可以向我們提供一些關於華為如何參與其中的信息，無論是在近期第四季度還是明年。

Well, you actually answered my question for me in many ways, which is you implied, which is correct that the U.S.-China trade dispute is turning into an extended affair with lots of twists and turns and uncertainties.

那麼，你實際上從很多方面回答了我的問題，這就是你所暗示的，這是正確的，中美貿易爭端正在變成一個長期的事件，充滿曲折和不確定性。

And we're assuming things on the condition that environment is not going to change from what we see now.

我們假設的條件是環境不會改變我們現在所看到的情況。

And if we make that assumption next year, you probably see a very uncertain 2020.

如果我們明年做出這樣的假設，你可能會看到一個非常不確定的 2020 年。

But as we sit here right now, and we probably have another 3 -- at least another 3 months before we probably give you a much more clear 2020 guidance.

但當我們現在坐在這裡時，我們可能還有另外 3 個——至少再過 3 個月，然後我們可能會為您提供更明確的 2020 年指導。

But as we sit here right now over the rest of this calendar year, if not fiscal year, what we are seeing is, you're right, it appears we have hit bottom at least in the semiconductors.

但當我們現在坐在這裡，在今年剩餘的時間裡，如果不是財政年度的話，我們看到的是，你是對的，看來我們至少在半導體領域已經觸底。

As it relates to the semiconductor solutions side, we have hit bottom.

就半導體解決方案而言，我們已經觸底。

And we are kind of looking ahead and seeing that we're staying right here, more or less, with little seasonality that pops up every now and then as we are seeing to some extent probably in the next few months as we see ramp-up of our North American -- large North American OEM customer enhances.

我們展望未來，發現我們或多或少都停留在這裡，時不時出現的季節性很少，正如我們在某種程度上可能在接下來的幾個月中看到的那樣，因為我們看到了增長我們的北美－北美大型OEM客戶的實力增強。

But other than that, broadly, we're kind of staying at the bottom.

但除此之外，整體而言，我們仍處於底部。

Our next question comes from John Pitzer of Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的約翰‧皮策。

Hock, I realize that you're trying to stay away from giving too specific guidance by business line, but I'm just kind of curious relative to your comments on the wireless side of the semi business.

霍克，我意識到您試圖避免按業務線提供過於具體的指導，但我只是對您對半業務無線方面的評論感到好奇。

How should we think about this build cycle for you this year prior -- relative to past years?

相對於往年，我們該如何考慮今年之前的建置週期？

I mean there is a view that you're gaining content on the RF side.

我的意思是，有一種觀點認為您正在獲得 RF 方面的內容。

You've got WiFi 6. Your largest customer is also not staggering their phone launch this year.

您已經擁有 WiFi 6。

They've got some tariff issues that they might want to pull in some builds.

他們遇到了一些關稅問題，他們可能想在一些構建中引入這些問題。

So just as you look at the results for the July quarter, were they up sequentially kind of in that mid-teens level?

那麼，正如您查看 7 月季度的業績一樣，它們是否連續上漲到了十幾歲左右的水平？

How do we think about October?

我們如何看待十月？

And how long is this build?

這個構建需要多長時間？

And what's the seasonal look into January?

一月份的季節性情況如何？

If you could give us any sort of color, that would be helpful.

如果您能給我們任何顏色，那將會很有幫助。

Well, it's always in this kind of -- even in this kind of program, we have limited visibility as provided by our customers, how far we can go.

嗯，總是這樣的——即使在這樣的計劃中，我們的客戶提供的可見性也很有限，我們能走多遠。

And to be very specific of what you're asking in wireless, it's -- as we've always done in previous years, we see beginning of uptick seasonality in the Q3, which is the July quarter.

具體來說，您在無線領域提出的問題是——正如我們前幾年一直所做的那樣，我們看到第三季（即七月的季度）開始出現季節性上升。

And we'll see more of it in our last quarter of the fiscal year, which is October quarter, and we fully expect to see that.

我們將在本財年的最後一個季度（即十月季度）看到更多這樣的情況，我們完全期望看到這一點。

And frankly, that's as far as we see in this typical kind of outlook because it obviously depends at the end of the day on reset of our OEM customers.

坦白說，這就是我們在這種典型前景中看到的情況，因為這顯然最終取決於我們的 OEM 客戶的重置。

But we do see that this year.

但今年我們確實看到了這一點。

We do not see any major departure from that.

我們認為沒有任何重大背離。

And year-on-year, things are quite predictable in this respect.

與去年同期相比，這方面的情況是可以預見的。

But having said that, as you know, we are a company much more than just wireless today.

但話雖如此，如您所知，我們今天不僅僅是一家無線公司。

Even in our semiconductor solutions, we have broad areas where we participate in, and there are multiple puts and takes, as I kind of indicated in terms of what happened in Q3.

即使在我們的半導體解決方案中，我們也有廣泛的參與領域，並且有多種投入和採取，正如我在第三季度發生的情況中所指出的那樣。

While we see continuing strength in networking, computing offload in the data centers, we do see some weaknesses in storage and broadband.

雖然我們看到資料中心網路、運算卸載方面的持續優勢，但我們確實看到儲存和寬頻方面的一些弱點。

And it will probably -- things might probably look better next quarter for wireless, but maybe there are some other areas of mitigate -- that will go the opposite way.

下個季度無線方面的情況可能看起來會更好，但也許還有其他一些領域需要緩解——情況可能會朝相反的方向發展。

But broadly, given our large portfolio and broad diversity and the fact that we are very fundamentally strong in each of those areas we are in, which we are saying -- what we are seeing and what we are saying here is that in the semiconductor macro market, which is where we are pretty well represented on average, we are not as strong as it was same time last year.

但總的來說，考慮到我們龐大的投資組合和廣泛的多樣性，以及我們在我們所處的每個領域都非常強大的事實，我們所說的話——我們所看到的和我們在這裡所說的是在半導體宏觀領域平均而言，我們在這個市場上的代表性相當好，但我們的實力不如去年同期。

And if you look at our data so far this year-to-date, we're down probably on average about 8% year-on-year or thereabouts, which is in my view what we think what the market -- what we think the market is on a broad basis excluding memory, of course.

如果你看看今年迄今為止我們的數據，我們可能平均同比下降 8% 左右，在我看來，這就是我們對市場的看法——我們的看法當然，市場範圍很廣，不包括內存。

And the fact that we were year-on-year down more in Q1, Q2 this fiscal year and probably less down in the back half of fiscal '19 should not be taken as a fact that that's a bottom and there's possibly a recovery.

事實上，我們在本財年第一季和第二季同比下降幅度更大，並且在19 財年後半段下降幅度可能較小，這一事實不應被視為已經觸底並且可能出現復甦的事實。

That's why we make the statement.

這就是我們發表聲明的原因。

We know we're pretty confident we're at the bottom.

我們知道我們非常有信心自己處於底部。

The question is there is no -- not much clarity or visibility yet or certainty that any sharp recovery is around the corner.

問題是，目前還沒有太多的清晰度或可見性，也沒有確定任何急劇復甦即將到來。

Our next question comes from Chris Danely of Citigroup.

我們的下一個問題來自花旗集團的克里斯·丹利。

Hock, can you talk about the expected timing of the 5G ramp, especially for your ASIC and ASSP business?

Hock，您能談談 5G 提升的預期時機嗎，特別是對於您的 ASIC 和 ASSP 業務？

When do you think that starts?

你認為什麼時候開始？

Has this been pushed out at all?

這已經被推出了嗎？

Is it about as good as you thought it would be 3 or 6 months ago?

它和您 3 或 6 個月前想像的一樣好嗎？

Or has the forecast changed?

或預測有變化嗎？

And how much?

多少錢？

Well, that's a tough question in terms of that because to be honest with you, we do not participate that much on 5G ramp on radio access in a broad perspective.

嗯，這是一個棘手的問題，因為老實說，我們並沒有從廣泛的角度參與 5G 無線存取的發展。

We touch at the handset level.

我們在手機層面進行觸摸。

We touch somewhat at radio access, but we believe we probably touch most at the backhaul, the networks.

我們在無線電存取方面有所接觸，但我們相信我們可能在回程網路方面接觸最多。

And I think each of them ramps, will ramp 5G at different times.

我認為他們每個人都會在不同的時間推出 5G。

So our perception -- our ability to see how big that ramp is at any particular point in time is also dependent on the fact that different operators in different countries will probably want to ramp up at different points in time different parts of the network, whether it's a front side ramp or the backhaul.

因此，我們的看法 - 我們了解在任何特定時間點的增長幅度有多大的能力也取決於這樣一個事實：不同國家的不同運營商可能希望在不同時間點網絡的不同部分增長，無論是它是前側坡道或回程。

And my guess is probably you won't see much of it until later this year, early part of next year, as far as we are concerned, which is more of the backhaul where it affects our numbers.

我的猜測是，就我們而言，直到今年晚些時候、明年初你可能不會看到太多，這更多的是影響我們數量的回程。

Our next question comes from Stacy Rasgon of Bernstein Research.

我們的下一個問題來自伯恩斯坦研究中心的史黛西·拉斯貢（Stacy Rasgon）。

I wanted to know -- you've had a growth target for semis in mid-single digits, and obviously, we're in an uncertain environment.

我想知道——你們已經為半成品設定了中個位數的成長目標，顯然，我們正處於一個不確定的環境中。

But you also talked a lot about, I guess, company-specific drivers and product cycles that fundamentally can still drive.

但我想，您也談到了很多公司特定的驅動因素和從根本上仍然可以驅動的產品週期。

So I guess are those fundamental drivers enough to keep the semi business growing at least somewhere in the ballpark of that sort of mid-single-digit long-term guidance even in an environment that's uncertain?

因此，我想即使在不確定的環境下，這些基本驅動因素是否足以使半成品業務至少保持在中個位數長期指導的範圍內？

And I guess maybe even put a different way, could you maybe talk about specifically some of the product cycles and trajectories that are maybe unique to Broadcom that you see kind of ramping next year and maybe compare with what we had this year across your different businesses?

我想甚至可以換一種方式，您能否具體談談博通可能獨有的一些產品週期和軌跡，您認為明年會有所增長，也許可以與我們今年在不同業務中的情況進行比較？

Well, yes, when I went on this quantification of the various trends driving the fundamentals of our product lines and our business -- our semiconductor business, I really wasn't thinking necessarily, and if I gave the wrong impression, I do apologize, 1 year.

嗯，是的，當我對推動我們產品線和業務（我們的半導體業務）基本面的各種趨勢進行量化時，我確實沒有必要思考，如果我給人留下了錯誤的印象，我確實道歉， 1年。

This is an ongoing trend, and I was using examples because these are examples ongoing that we see today, recent past and going forward in the future.

這是一個持續的趨勢，我使用了一些例子，因為這些是我們今天看到的、最近發生的和未來發生的例子。

But what I do see is that, yes, in all these areas we participate in, from -- as networking in data centers, routing in core and metro networks or in cable, in cable and broadband where we all are, one thing is clear, which is the nice thing we had -- we see in technology, especially the semiconductor technology.

但我確實看到的是，是的，在我們參與的所有這些領域，從資料中心的網路、核心和城域網路或電纜、電纜和寬頻中的路由，我們都在其中，有一件事是明確的，這是我們所擁有的美好事物——我們在技術中看到了這一點，尤其是半導體技術。

There is a constant evolution of the products we do as constant demand for improved performance or [as I put it] increased bandwidth [since we do] connectivity.

隨著對提高性能或[正如我所說的]增加頻寬[自從我們這樣做以來]連接性的不斷需求，我們所做的產品不斷發展。

And depending on the particular applications, some may spend 1 year, some may spend 3 years to make a transition.

而且根據具體應用的不同，有的可能需要1年，有的可能需要3年才能完成過渡。

But they do happen, and they continue to happen.

但它們確實發生了，而且還在繼續發生。

And that's what keeps demand sustained for our technology, for our products.

這就是我們的技術和產品的需求持續成長的原因。

And that's what underpins, as we put it, a long-term growth forecast in semiconductors for us of mid-single digits.

正如我們所說，這就是我們對半導體產業中個位數長期成長預測的支撐。

And I don't mean 1 year.

我的意思不是1年。

I don't mean necessarily even 2 or 3 years.

我的意思不一定是2年或3年。

I mean over the next 5 years, 10 years because think about it, right, in 2018 fiscal, our semiconductor business organically, take out all acquisitions, grew 12% year-on-year from '17.

我的意思是在未來 5 年、10 年，因為想想看，在 2018 財年，我們的半導體業務有機地，除去所有收購，比 17 年同比增長了 12%。

And in '17, we grew another -- over '16, about 10% organically.

17 年，我們又成長了一次，比 16 年有機成長了約 10%。

So I frankly do not expect that high of rate, double-digit rate in these fiscals where we are pretty well represented across a broad area to be able to continue at that rate of growth.

因此，坦白說，我並不認為我們在廣泛領域具有良好代表性的這些財政年度的兩位數成長率能夠繼續保持這樣的成長率。

And so we see in '19 a decline from a strong '18, as I said, of probably mid- to high single digits.

因此，正如我所說，我們在 19 年看到了較強勁的 18 年下降的幅度，可能是中高個位數。

Not unexpected but taken over a period of multiple years, we believe we have -- we will achieve that mid-single-digit compounded annual growth rate.

這並不出人意料，但經過多年的努力，我們相信我們將實現中個位數的複合年增長率。

But I won't do that every year.

但我不會每年都這樣做。

Our next question comes from Ross Seymore of Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西莫爾。

Tom, I had one for you on the capital return side of things.

湯姆，我為你準備了一份關於資本回報的資料。

In the past, that 50% dividend policy you have, it's very clear, but the free cash flow that generates that at times has been a little more subjective due to onetime charges finishing the classic Broadcom campus, et cetera.

過去，50% 的股息政策非常明確，但由於完成經典博通園區的一次性費用等原因，產生的自由現金流有時更為主觀。

So how does restructuring charges -- how do they fit into the math of free cash flow.

那麼重組費用是如何計算的——它們如何融入自由現金流的數學計算中。

And then the investment grade target where you want to keep it there, what sort of leverage target should we think about with you guys more aggressively be paying down debt as opposed to repurchasing shares in the near future?

然後是你想要維持的投資等級目標，我們應該考慮什麼樣的槓桿目標，讓你們更積極地償還債務，而不是在不久的將來回購股票？

Yes.

是的。

I think on the cash flow side, Ross, what we tried to do is create somewhat of a formula because we do typically have acquisitions, we do have investments we make to get to the synergy targets.

我認為在現金流方面，羅斯，我們試圖做的是創建一個公式，因為我們通常會進行收購，我們確實會進行投資以實現協同目標。

And in fact, what we're trying to do is deliver the benefits to the stockholders the year with which we are able to achieve those synergies.

事實上，我們正​​在努力做的是在我們能夠實現這些協同效應的那一年為股東帶來利益。

So what we've done is we've said, look, let's look at the free cash flow from operations, obviously includes those restructuring charges, and let's add back those for the purposes of calculating the dividends.

所以我們所做的就是我們說過，看，讓我們看看來自營運的自由現金流，顯然包括那些重組費用，然後讓我們將這些費用加回去以計算股息。

So when we get to the end of the year, we'll take the cash flow from operations.

因此，當我們到年底時，我們將從營運中獲取現金流。

We'll add back the restructuring, integration charges, and in effect -- we'll divide by 2 to get to the number that we used to calculate the dividend.

我們將加回重組、整合費用，實際上，我們將除以 2 以獲得用於計算股利的數字。

This year, we don't have any specific onetime large campus initiatives or things like that, that we would also look to back out.

今年，我們沒有任何特定的一次性大型校園計畫或類似的事情，我們也希望取消。

So that should be a fairly good proxy for how we think about the dividend and the recommendation of the Board at the end of this year.

因此，這應該可以很好地反映我們對今年年底股息和董事會建議的看法。

In terms of investment grade, I think we talked about this before, but maintaining investment grade similar to the dividend policy is a core principle here.

就投資等級而言，我想我們之前已經討論過這一點，但保持與股息政策類似的投資等級是這裡的核心原則。

And I think the reason for that, and Hock and I discussed it many times internally, is it provides maximum flexibility for us to continue to pursue our strategy.

我認為原因（霍克和我在內部多次討論過）是它為我們繼續推行我們的策略提供了最大的靈活性。

It's always been very important.

這一直都非常重要。

So over time, we had this onetime event.

所以隨著時間的推移，我們有了這個一次性的事件。

We bought back a bunch of stock as I talked about in the prepared remarks.

正如我在準備好的評論中談到的那樣，我們回購了一批股票。

That's pushed leverage up more so than we normally would.

這使得槓桿率的上升幅度超出了我們通常的預期。

We think based on the economics and the results so far, that was the right decision.

我們認為，根據經濟學和迄今為止的結果，這是正確的決定。

But we're really looking forward to going back to the playbook we pursued in the past, which is following the distribution of the dividend, we still have a lot of cash flow.

但我們真的很期待回到我們過去追求的劇本，即在股息分配之後，我們仍然有大量的現金流。

And that cash flow, we think, based on our strategy, is best used for M&A because that's where the returns are most optimal.

我們認為，根據我們的策略，現金流最好用於併購，因為這是回報最佳的地方。

But as part of that, we often borrow money to finance those acquisitions, and then we go and pay that debt down.

但作為其中的一部分，我們經常藉錢來為這些收購提供資金，然後我們去償還債務。

So I think we're going back to a more traditional playbook.

所以我認為我們會回到更傳統的策略。

And as part of that, given the size and the scale and the increasing diversity of the business and the sheer profitability and the cash flows, we're very much an investment-grade company, and we're going to be very focused on maintaining that investment-grade status going forward.

作為其中的一部分，考慮到業務的規模和日益多樣化，以及絕對的盈利能力和現金流，我們在很大程度上是一家投資級公司，我們將非常專注於維持未來的投資級地位。

Our next question comes from Blayne Curtis of Barclays.

我們的下一個問題來自巴克萊銀行的布萊恩‧柯蒂斯。

Tom, for you, just on the annual guidance for op margin, would suggest a tick down into October.

湯姆，對你來說，僅就營業利潤率的年度指導而言，他建議將價格下調至十月。

I just want to make sure how literally to take that, and if so, can you talk about any drivers as to why profitability will be coming down in October.

我只是想確定如何從字面上理解這一點，如果是這樣，您能否談談 10 月份盈利能力下降的任何驅動因素。

Yes.

是的。

It's a good point, and maybe we're a bit conservative to be honest, Blayne, I think the reality is you see the mix shift in the second half of the year, got a couple of things going on: one, with wireless ramping seasonally.

這是一個很好的觀點，也許我們有點保守，說實話，布萊恩，我認為現實是你會看到下半年的混合變化，有幾件事正在發生：一是無線升級季節性。

As Hock discussed, those margins are not as high as the rest of the portfolio.

正如霍克所討論的，這些利潤率並不像投資組合的其他產品那麼高。

And then on top of that, we're giving back some on the SAN switching side in the back half, which is fairly high-margin product.

除此之外，我們也在後半部的 SAN 交換方面進行了一些回饋，這是利潤相當高的產品。

So we felt it made sense given the mix to stick to that number.

所以我們覺得考慮到混合堅持這個數字是有道理的。

And that's why we're staying there.

這就是我們留在那裡的原因。

Our next question comes from Toshiya Hari of Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

Hock, I was hoping you could talk a little bit more about what you're seeing in the hyper-scale cloud environment.

Hock，我希望您能多談談您在超大規模雲端環境中所看到的情況。

A couple of your peers or quite a few of your peers have talked about signs of a recovery into the back half and potentially into 2020 following a pretty extended period of weakness.

你們的一些同行或不少同行都談到了在經歷了相當長一段時間的疲軟之後，下半年甚至可能進入 2020 年的復甦跡象。

I appreciate you guys have drivers that are very specific to the company.

我很感謝你們擁有專門針對公司的驅動程式。

But in terms of customer sentiment on spending and capacity expansion, what are your thoughts there?

但就客戶對支出和產能擴張的看法而言，您有何看法？

Okay.

好的。

Well, it's a very interesting question, and I guess I'd put it 2 ways.

嗯，這是一個非常有趣的問題，我想我可以用兩種方式來表達。

One is touching on cloud spending.

其中之一涉及雲端支出。

We pretty much see some of what a lot of people are seeing in comments lately, which is an improvement in cloud spending in multiple areas especially in scaling out new generation data centers as they expand their business.

我們幾乎看到了許多人最近在評論中看到的一些內容，即多個領域的雲端支出有所改善，特別是在擴展業務時擴展新一代資料中心。

And we obviously benefit from that in switching, routing and some of our specific custom offload programs in AI or just Smart NICs.

我們顯然可以從交換、路由以及人工智慧或智慧網卡中的一些特定自訂卸載程式中受益。

And we see that.

我們看到了這一點。

But as we all know these days, cloud spending is starting to be a bit like telco spending, very lumpy.

但眾所周知，如今雲端支出開始有點像電信支出，非常不穩定。

What we see on the other half of our business, in infrastructure, is with enterprises, end users.

我們在基礎設施領域的另一半業務中看到的是企業和最終用戶。

And here, from the viewpoint of an opportunity to see end users directly, we see end user -- enterprises or end users, who are the end users, especially the largest bunch, our core customers, their spending continues.

在這裡，從直接看到最終用戶的機會的角度來看，我們看到最終用戶——企業或最終用戶，他們是最終用戶，特別是最大的一群，我們的核心客戶，他們的支出仍在繼續。

Their IT budget is pretty strong, and their spending continues because they need that digital transformation as their business continues fairly decently.

他們的 IT 預算相當強勁，而且他們的支出仍在持續，因為他們需要數位轉型，因為他們的業務相當不錯地持續發展。

And that has not impacted, which is why our infrastructure software business renewals continue to grow very nicely, and that's not an issue.

這並沒有產生影響，這就是為什麼我們的基礎設施軟體業務更新繼續成長得非常好，這不是問題。

It's when we sell components to OEMs, who then make it into systems to sell to these same end users that we see a difference.

當我們向原始設備製造商出售組件，然後由原始設備製造商將其製作成系統並出售給這些相同的最終用戶時，我們就看到了差異。

And the difference is simply that I think given as far as we could gather, given the uncertainty in this environment, that everybody is constraining -- all our partners are constraining their supply chain and compressing their supply chain, so to speak.

差別在於，據我們所知，考慮到這種環境的不確定性，每個人都在受到限制——可以這麼說，我們所有的合作夥伴都在限制他們的供應鏈並壓縮他們的供應鏈。

And that action of compressing is really a reduction in orders, a reduction in what appears to be demand.

這種壓縮行為其實是訂單的減少，表面上需求的減少。

So it's really interesting as we see this, that on the software side, things are -- direct sales to large enterprises continue fairly unabated.

因此，當我們看到這一點時，這真的很有趣，在軟體方面，向大型企業的直接銷售繼續相當有增無減。

But when it comes to selling components through partners to these same end users, we see a different perspective, a slowdown, a constraint.

但當談到透過合作夥伴向這些相同的最終用戶銷售組件時，我們看到了不同的觀點、放緩和限制。

And it's reflected, obviously, in the numbers we are showing here.

顯然，這反映在我們在這裡顯示的數字中。

And it also is reflected in the outlook that we're giving to you guys.

這也反映在我們向你們提供的展望中。

Our next question comes from Craig Hettenbach of Morgan Stanley.

我們的下一個問題來自摩根士丹利的克雷格·赫滕巴赫。

Hock, switching gears to CA and the software side, can you talk about just some of the efforts around portfolio license agreements, specifically what kind of sales efforts you have in place there and what this could mean for the business over the next couple of years as you try to gear it that way?

Hock，轉向 CA 和軟體方面，您能否談談圍繞產品組合許可協議所做的一些努力，特別是您在那裡開展了哪些銷售工作，以及這對未來幾年的業務意味著什麼當你嘗試以這種方式調整它時？

Yes.

是的。

Well, it is in that portfolio licensing arrangements as a sales model or business model we apply to our infrastructure software business, which is CA at this point, has been, in my mind, and to be fair, it's less than a year since we launched it, since we took over CA only last November.

嗯，在我看來，正是將組合許可安排作為一種銷售模式或商業模式應用於我們的基礎設施軟體業務（此時為CA），而且公平地說，我們應用到基礎設施軟體業務還不到一年的時間。

It's been, I would call it, very successful.

我稱之為非常成功。

It's been very encouraging.

這非常令人鼓舞。

And a big part of why we think it is encouraging and why it works is because we just focus on the largest 500, 600 customers of CA.

我們認為它令人鼓舞且有效的一個重要原因是我們只專注於 CA 最大的 500,600 個客戶。

These are guys where we have large -- decent-sized or large footprints to begin with.

我們一開始就對這些人有很大的——體面大小或大的足跡。

And as we go towards renewals, our ability to offer a portfolio-wide licensing arrangement, unlimited capacity on the full range of products, broad product set we have that extends beyond -- from mainframe to distributed software is extremely attractive and cost effective to those large enterprises who buys a lot of those infrastructure software.

隨著我們走向續訂，我們提供全產品組合許可安排、全系列產品無限容量、我們擁有的廣泛產品集（從大型機到分散式軟體）的能力對於那些人來說極具吸引力且具有成本效益。

So we have done multiple deals as we went through multiple renewals, and we continue to be very engaged with those companies.

因此，在經歷多次續約時，我們已經完成了多項交易，並且我們繼續與這些公司保持密切接觸。

So I guess my conclusion is by focusing on these largest customers with large -- where we have large footprint that exists and where the ability to consume more of those software we have, it makes up a lot of sense.

因此，我想我的結論是，重點關注這些規模最大的客戶——我們在這些客戶中擁有大量的足跡，並且有能力使用我們擁有的更多軟體，這很有意義。

And as I put in some of my comments earlier on, this ability to focus on this largest guys and put the sales motion technically and commercially very effectively on these large customers and possibly not focus on the long tail of noncore customers is a key part of the whole model and what makes the whole model work simply because conceptually, we are renewing those contracts with larger footprints on portfolio licensing agreement, as I mentioned, at a rate of over 20% annually while we are, probably because of lack of focus, reducing or [attriting] smaller noncore customers at 10%.

正如我之前發表的一些評論，這種專注於這些最大的客戶並將銷售活動在技術和商業上非常有效地應用於這些大客戶的能力，並且可能不關注非核心客戶的長尾是關鍵部分整個模型以及使整個模型發揮作用的原因很簡單，因為從概念上講，正如我提到的，我們正在以每年20% 以上的速度續簽那些在投資組合許可協議上佔據較大份額的合同，而我們可能是因為缺乏重點，減少或[吸引]規模較小的非核心客戶 10%。

And those core customers represent 80% of our overall revenue while the long tail represents only 20%, ends up in a situation after 1 year almost 1 year where we show net gains of over 10%.

這些核心客戶占我們總收入的80%，而長尾只佔20%，最終導致一年後我們淨收益超過10%的情況。

Keep that going, 3 years later, we reach the average term of every contract we put in place, we would see a clear step-up in our revenues from this business of, we like to believe, double-digit growth.

繼續下去，三年後，我們達到了所簽訂的每份合約的平均期限，我們將看到這項業務的收入明顯增加，我們願意相信，將實現兩位數的增長。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。