Ciena Corp (CIEN) 2006 Q1 法說會逐字稿

Good day, everyone.

今天是個好日子。

Welcome to the Ciena Corporation first quarter 2006 results conference call.

歡迎參加 Ciena Corporation 2006 年第一季度業績電話會議。

Today's conference is being recorded.

今天的會議正在錄製中。

At this time for opening remarks and introductions i would like to turn the call over to Chief Communications Officer, Ms. Suzanne DuLong.

在開始致辭和介紹時，我想將電話轉給首席傳播官 Suzanne DuLong 女士。

Please go ahead.

請繼續。

Thanks, Gwen.

謝謝，格溫。

Good morning, and welcome everyone.

早上好，歡迎大家。

I am pleased to have with me Gary Smith, Ciena's CEO and President, and Joe Chinnici, our CFO.

我很高興與 Ciena 的首席執行官兼總裁 Gary Smith 和我們的首席財務官 Joe Chinnici 一起來。

In addition, Steve Alexander, our Chief Technology Officer, will be joining us for the Q&A portion of today's call.

此外，我們的首席技術官史蒂夫亞歷山大將加入我們今天電話會議的問答部分。

Gary will provide some brief introductory comments.

Gary 將提供一些簡短的介紹性評論。

Joe will review the quarter's financial results.

喬將審查本季度的財務結果。

Gary will then discuss the business in the quarter and our outlook for our fiscal second quarter and Joe will wrap up our prepared remarks with guidance for Q2.

然後，Gary 將討論本季度的業務以及我們對第二財季的展望，而 Joe 將總結我們準備好的評論以及對第二季度的指導。

We'll then open the call for questions from the sell-side analysts.

然後我們將打開賣方分析師的問題電話。

To ensure we answer as many questions as possible during the time allotted for this call, we ask that sell-siders limit themselves to one question.

為確保我們在分配給此電話的時間內回答盡可能多的問題，我們要求賣方將自己限制在一個問題上。

This morning's press release is available on National Business Wire and FirstCall, and also on Ciena's website at ciena.com.

今天上午的新聞稿可在 National Business Wire 和 FirstCall 以及 Ciena 的網站 ciena.com 上查閱。

Before I turn the call over to Gary, I will remind you during this call, we will be making some forward-looking statements.

在我把電話轉給加里之前，我會在這次電話會議中提醒你，我們將做出一些前瞻性陳述。

Such statements are based on current expectations, forecasts and assumptions of the company that include risks and uncertainties that could cause actual results to differ materially from the statements discussed today.

此類陳述基於公司當前的預期、預測和假設，其中包括可能導致實際結果與今天討論的陳述存在重大差異的風險和不確定性。

These statements should be viewed in the context of the risk factors detailed in our 10-K filed with the SEC on January 12.

應結合我們於 1 月 12 日向美國證券交易委員會提交的 10-K 中詳述的風險因素來看待這些陳述。

We have until Thursday, March 9 to file our 10-Q for our first fiscal quarter, and we expect to do so by then or before.

我們必須在 3 月 9 日星期四之前提交我們的第一個財政季度的 10-Q，我們希望在那時或之前這樣做。

Ciena assumes no obligation to update the information discussed in this conference call, whether as a result of new information, future events or otherwise.

Ciena 沒有義務更新本次電話會議中討論的信息，無論是由於新信息、未來事件還是其他原因。

Gary.

加里。

Thanks, Suzanne and good morning, everyone.

謝謝，蘇珊娜，大家早上好。

With our Q1 results, we again demonstrated evidence of our execution and focus on driving operating performance improvements.

通過我們的第一季度業績，我們再次證明了我們的執行力和專注於推動運營績效改進的證據。

In addition to our eighth sequential quarter of revenue growth we again delivered gross margin improvement and lowered our ongoing operating expenses.

除了我們連續第八個季度的收入增長外，我們再次實現了毛利率的改善並降低了我們的持續運營費用。

Overall, we're tracking to plan, and we continue to see signs of improving market strength across our portfolio and solutions set.

總體而言，我們正在跟踪計劃，並且我們繼續看到我們的產品組合和解決方案集的市場實力有所增強的跡象。

And we believe that our strategy, our investments, and the resulting changes in our business have positioned us to take advantage of a market opportunity that, for the first time in many years, is growing as a result of fundamental demand drivers.

我們相信，我們的戰略、我們的投資以及由此產生的業務變化使我們能夠利用市場機會，這是多年來第一次因基本需求驅動因素而增長的市場機會。

I will discuss our business in the quarter, and our progress towards profitability and earnings growth in more detail after Joe reviews the quarterly results.

在 Joe 回顧季度業績後，我將更詳細地討論我們本季度的業務，以及我們在盈利能力和收益增長方面取得的進展。

Joe.

喬。

Thanks, Gary, and good morning, everyone.

謝謝，加里，大家早上好。

This morning we reported first quarter revenue totaling $120.4 million.

今天早上，我們報告了第一季度總收入為 1.204 億美元。

This represents an increase of 1.9% sequentially and 27.1% year-over-year.

這表示環比增長 1.9%，同比增長 27.1%。

There were three 10% plus customers in the first quarter that combined represented 45.3% of total sales.

第一季度有三個 10% 以上的客戶，合計佔總銷售額的 45.3%。

All three customers purchased access gear, long distance and metropolitan optical transport solutions.

這三個客戶都購買了接入設備、長途和城域光傳輸解決方案。

One also purchases our DN multi-service switching product, and another was the single 10% customer in the fourth quarter.

一個也是購買我們的DN多業務交換產品，一個是四季度單一10%的客戶。

U.S. sales represented 85% of total revenue for the first quarter up slightly from the 78% level in the fourth quarter.

第一季度美國銷售額佔總收入的 85%，略高於第四季度的 78%。

Moving now to talk about quarterly revenue contribution from our business units, revenue from our transport and switching group, or TSG, increased slightly sequentially, from $74.1 million in the fourth quarter, to $74.9 million in our first quarter, representing 62% of the quarter's total revenue consistent with fourth quarter.

現在談談我們業務部門的季度收入貢獻，我們的傳輸和交換集團 (TSG) 的收入環比略有增長，從第四季度的 7410 萬美元增加到第一季度的 7490 萬美元，佔本季度收入的 62%總收入與第四季度一致。

This group consists of core transport and core switching, multi-service access, metro transport and switching, and storage extension solutions.

該組包括核心傳輸和核心交換、多服務接入、城域傳輸和交換以及存儲擴展解決方案。

Long-haul optical transport and core switching both increased sequentially, and were the largest contributors to TSG's revenue in the quarter, representing roughly 47% and 19% of the group's total revenue respectively.

長途光傳輸和核心交換均環比增長，是本季度 TSG 收入的最大貢獻者，分別約佔集團總收入的 47% 和 19%。

Metro optical transport ran a close third, representing roughly 16% of the group's revenue.

城域光傳輸緊隨其後，佔該集團收入的 16% 左右。

For the third quarter since its launching the third quarter of '05, we also took revenue from our CN 4200 advanced services platform.

自 05 年第三季度推出以來的第三季度，我們還從 CN 4200 高級服務平台獲得了收入。

And while it is not yet a meaningful contributor to overall revenue, we're pleased with the traction and ramp of this product which broke through the $2 million mark in the quarterly revenue and shipping into all of our customer segments as well as through several channel partners.

雖然它對總收入的貢獻還不是很大，但我們對這款產品的吸引力和增長感到滿意，該產品的季度收入突破了 200 萬美元大關，並通過多個渠道進入了我們所有的客戶群夥伴。

Revenue from our data networking group was flat at $6 million in the first quarter representing 5% of the total revenue.

我們數據網絡部門的收入在第一季度持平，為 600 萬美元，佔總收入的 5%。

Revenue from our Broadband Access Group increased slightly as expected from $22.3 million in the fourth quarter to $25 million in the first quarter representing 21% of total revenue.

我們寬帶接入集團的收入從第四季度的 2230 萬美元略微增長至第一季度的 2500 萬美元，佔總收入的 21%。

Revenue from our global networking services business unit decreased slightly quarter to quarter, from $15.3 million in the fourth quarter to $14.5 million in the first quarter and represented 12% of total revenue.

我們全球網絡服務業務部門的收入逐季略有下降，從第四季度的 1530 萬美元降至第一季度的 1450 萬美元，佔總收入的 12%。

Turning to our quarterly operating results, the press release includes a GAAP-only presentation of our results as well as detailed information about the adjustments that, as management, we made to Ciena's GAAP earnings in our analysis of Ciena's ongoing business.

談到我們的季度經營業績，新聞稿包括我們業績的僅 GAAP 介紹，以及我們作為管理層在對 Ciena 持續業務的分析中對 Ciena 的 GAAP 收益所做調整的詳細信息。

In general, these adjustments which are identified in the table in the press release share one or more of the following characteristics: they are unusual, and we do not expect them to recur in the ordinary course of business, they do not involve the expenditure of cash, they are unrelated to the ongoing operation of the business in the ordinary course, or their magnitude and timing is largely outside of our control.

總的來說，新聞稿表中確定的這些調整具有以下一個或多個特徵：它們是不尋常的，我們不希望它們在正常業務過程中再次發生，它們不涉及支出現金，它們與日常業務的持續運營無關，或者它們的規模和時間在很大程度上不在我們的控制範圍內。

In my comments today, I will speak to both the GAAP results and to what the results would have been if we excluded those items detailed in the press release.

在我今天的評論中，我將談到 GAAP 結果以及如果我們排除新聞稿中詳述的那些項目將會產生的結果。

With that background, let's get started.

有了這個背景，讓我們開始吧。

The first quarter's gross margin of 41.9% improved 200 basis points from the fourth quarter's level of 39.9% as a result of our ongoing product and manufacturing related cost reduction efforts as well as product mix in the quarter.

第一季度 41.9% 的毛利率比第四季度 39.9% 的水平提高了 200 個基點，這歸功於我們在本季度持續進行的產品和製造相關成本削減工作以及產品組合。

The first quarter's gross margin includes a charge of $300,000 for 123-R related equity based compensation expense.

第一季度的毛利率包括 300,000 美元的 123-R 相關股權補償費用。

Product gross margin increased from 42.2% in the fourth quarter to 43% in the first quarter.

產品毛利率由四季度的42.2%上升至一季度的43%。

Our services gross margin also increased from 24.5% in the fourth quarter to 33.9%.

我們的服務毛利率也從第四季度的 24.5% 增加到 33.9%。

Service gross profit benefited from an unusually favorable mix of deployment service engagement with higher than normal margins as well as higher margin related training related revenue.

服務毛利受益於異常有利的部署服務參與組合，具有高於正常的利潤率以及更高的利潤率相關培訓相關收入。

We expect our global networking services related to business to generally track closer to the 20 to 25% gross margin range.

我們預計與業務相關的全球網絡服務的毛利率通常接近 20% 至 25%。

Turning to operating expenses, on a GAAP basis our operating expenses in the first quarter totaled $65.6 million.

談到運營費用，根據公認會計原則，我們第一季度的運營費用總計 6560 萬美元。

In addition to the first time FAS 123-R related equity based compensation expenses of $3.5 million, the quarter's GAAP operating expenses reflect non-operating related or non-cash charges for the following: amortization of intangible assets, restructuring costs, a credit on long lived asset impairments, a recovery of doubtful accounts and a gain on a lease settlement.

除了首次與 FAS 123-R 相關的股權補償費用 350 萬美元外，本季度的 GAAP 運營費用還反映了以下方面的非運營相關或非現金費用：無形資產攤銷、重組成本、長期信貸資產減值、呆賬回收和租賃結算收益。

Let me add some color on some of the larger of these items.

讓我在其中一些較大的項目上添加一些顏色。

Of the $2 million in restructuring costs in the quarter, roughly 1.5 million was attributable to work force reductions we discussed last quarter.

在本季度 200 萬美元的重組成本中，大約 150 萬美元歸因於我們上個季度討論的裁員。

The $6 million gain on the lease settlement came as a result of our early lease termination of an unused facility in Fremont, California.

600 萬美元的租賃結算收益是由於我們提前終止了加利福尼亞州弗里蒙特一處未使用設施的租約。

The $2.6 million recovery of doubtful accounts was related to a single customer.

可疑賬戶的 260 萬美元追回與單個客戶有關。

Adjusted for these and other non-operating or non-recurring charge detailed in the press release our R&D, sales and marketing and G&A expenses for the quarter, exclusive of the stock compensation, costs would have been $62.4 million.

根據新聞稿中詳述的這些和其他非經營性或非經常性費用調整，我們本季度的研發、銷售和營銷以及 G&A 費用，不包括股票補償，費用為 6240 萬美元。

This is down 8% from the fourth quarter's total of $67.5 million.

這比第四季度的總額 6750 萬美元下降了 8%。

The first quarter's $6.3 million GAAP net loss or, a loss of $0.01 per share, also reflects a $733,000 loss on equity investments and a $6.7 million gain on extinguishment of debt.

第一季度 630 萬美元的 GAAP 淨虧損或每股虧損 0.01 美元，還反映了 733,000 美元的股權投資虧損和 670 萬美元的債務清償收益。

The gain on the extinguishment of debt came as a result of our debt repurchase which I will review in more detail shortly.

債務清償的收益來自於我們的債務回購，我將在稍後進行更詳細的審查。

This compares to a GAAP net loss of $57 million or a loss of $0.10 per share in the same year ago period.

相比之下，去年同期的 GAAP 淨虧損為 5700 萬美元或每股虧損 0.10 美元。

Prior periods' GAAP results do not include the impact of FAS 123-R but do include share based compensation expense recognized in accordance with APB 25 as interpreted by FASB interpretation No. 44.

前期的 GAAP 結果不包括 FAS 123-R 的影響，但包括根據 FASB 解釋第 44 號解釋的 APB 25 確認的基於股份的補償費用。

Exclusive of the $3.8 million 123-R related compensation expense, our GAAP results for first quarter of '06 would have reflected a loss of $2 million or break even on a per share basis.

不包括 380 萬美元的 123-R 相關補償費用，我們 06 年第一季度的 GAAP 結果將反映每股虧損 200 萬美元或收支平衡。

Adjusted for the unusual or non-operating items I discussed earlier including 123-R related compensation expense as well as APB 25 related share based compensation expense, our loss for the first quarter would have been $8.7 million or $5.5 million if tax affected or a loss of $0.01 per share.

針對我之前討論的異常或非經營性項目進行調整，包括 123-R 相關補償費用以及 APB 25 相關股份補償費用，如果稅收影響或損失，我們第一季度的損失將是 870 萬美元或 550 萬美元每股 0.01 美元。

This is better than the per share guidance range we offered and compares to an adjusted loss of $0.05 per share in the same period a year ago.

這好於我們提供的每股指導範圍，與去年同期每股 0.05 美元的調整後虧損相比。

Now turning to the balance sheet.

現在轉向資產負債表。

Cash, short term and long-term investments at the end of the fourth quarter totaled $961.6 million representing a quarter to quarter change of $131.9 million, of which roughly $32 million was used for operating purposes.

第四季度末的現金、短期和長期投資總額為 9.616 億美元，環比變化為 1.319 億美元，其中約 3200 萬美元用於運營目的。

Of that $32 million operating cash, roughly $18 million was associated with increased inventory to support our future demand, $12 million was associated with the early lease termination of our unused Fremont, California, facility, and $11.5 million was used for our semi-annual interest payment.

在這 3200 萬美元的運營現金中，大約 1800 萬美元與增加庫存以支持我們未來的需求有關，1200 萬美元與提前終止我們未使用的加利福尼亞州弗里蒙特工廠的租賃有關，1150 萬美元用於我們的半年度利息支付。

The balance of the cash in-flows and out-flows were associated with other general operating activities.

現金流入和流出的餘額與其他一般經營活動相關。

In addition, we used $98.8 million to repurchase $106.5 million par value of our outstanding 3 and 3.75 convertible notes due in February of 2008.

此外，我們用 9880 萬美元回購了面值 1.065 億美元的 2008 年 2 月到期的未償還 3 和 3.75 可轉換票據。

With this purchase, we reduced our outstanding principal on these convertible notes to $542.3 million.

通過此次購買，我們將這些可轉換票據的未償還本金減少至 5.423 億美元。

Our accounts receivable balance at the end of the quarter increased to $81.1 million from $72.8 million at the end of the fourth quarter in part as a result of orders shipped toward the latter part of the quarter.

我們在本季度末的應收賬款餘額從第四季度末的 7280 萬美元增加到 8110 萬美元，部分原因是訂單在本季度末發貨。

Day sales outstanding in the first quarter were 61, up from the 55 level in the fourth quarter.

第一季度的日銷售額為 61，高於第四季度的 55。

We expect our DSOs to increase in the second quarter and during 2006 a result of what we anticipate will be a larger percentage contribution from our customers outside of the United States who generally have longer payment terms.

我們預計我們的 DSO 將在第二季度和 2006 年期間增加，因為我們預計來自美國以外的客戶的貢獻百分比將更大，這些客戶通常具有更長的付款期限。

We expect our DSOs going forward will be in the range of 65 to 70 days.

我們預計我們未來的 DSO 將在 65 到 70 天的範圍內。

Inventory levels ended the first quarter at $64.4 million, up as expected from fourth quarter's $49.3 million as a result of purchases made to support demand.

由於為支持需求而進行的採購，第一季度的庫存水平為 6440 萬美元，高於預期的第四季度的 4930 萬美元。

The inventory break down for the quarter was as follows: raw materials, $24.3 million, work in process $3.5 million, finished goods, $58.8 million and a reserve for excess and obsolescence of $22.2 million.

本季度的存貨明細如下：原材料 2,430 萬美元，在製品 350 萬美元，產成品 5,880 萬美元，過剩和過時儲備金 2,220 萬美元。

The largest increase came in finished goods, which was up roughly 23% from the fourth quarter.

增幅最大的是製成品，較第四季度增長約 23%。

Product inventory turns were 3.7 in the first quarter down from 4.8 in the fourth quarter; as expected given the anticipated and actual increase in inventory.

第一季度產品庫存周轉率為 3.7，低於第四季度的 4.8；考慮到庫存的預期和實際增加，符合預期。

As a reminder, finished goods inventory for us generally represents equipment awaiting revenue recognition as opposed to equipment awaiting shipment.

提醒一下，我們的成品庫存通常代表等待收入確認的設備，而不是等待裝運的設備。

We expect the second quarter's inventory levels to increase from the first quarter as a result of purchases we'll be making to support demand and as a result of shipments on which revenue recognition will likely be pending.

我們預計第二季度的庫存水平將比第一季度增加，這是由於我們為支持需求而進行的採購以及收入確認可能待定的出貨量。

Finally, head count.

最後，人數統計。

Our worldwide head count at the end of the first quarter totaled 1,442, a decrease of 55 from the fourth quarter.

第一季度末，我們的全球員工總數為 1,442 人，比第四季度減少 55 人。

And now I will turn the call back over to Gary.

現在我將把電話轉回給加里。

Thanks, Joe.

謝謝，喬。

We continue to execute on a plan that has us simultaneously driving revenue growth, gross margin improvement and operating cost reductions.

我們繼續執行一項計劃，使我們能夠同時推動收入增長、毛利率提高和運營成本降低。

As I noted previously during Q1, we delivered our eighth sequential quarter revenue growth and our fourth sequential quarter of gross margin improvement as well as meaningfully lower ongoing operating expenses.

正如我之前在第一季度指出的那樣，我們實現了連續第八個季度的收入增長和第四個連續季度的毛利率改善以及顯著降低的持續運營費用。

In addition to improvements in our financial performance we continue to see evidence of improving market strength as carriers look to converge disparate networks and offer bundled video, voice and data services, as enterprises look for enhanced network reliability and security and the ability to address industry-specific applications, and as more and more networks look to packet friendly carrier Ethernet as converged enabler.

除了我們財務業績的改善外，我們繼續看到市場實力增強的證據，因為運營商希望融合不同的網絡並提供捆綁的視頻、語音和數據服務，因為企業尋求增強的網絡可靠性和安全性以及解決行業問題的能力——特定應用，並且隨著越來越多的網絡將數據包友好的運營商以太網視為融合的推動者。

We're gaining increasing confidence overall that our network specialist strategy and our vision for network transition has positioned us to capitalize on these trends.

總體而言，我們越來越相信我們的網絡專家戰略和我們對網絡轉型的願景使我們能夠利用這些趨勢。

With our FlexSelect architectural vision we're showing both service provider and enterprise customers how to get unprecedented network flexibility, manageability and lower costs, as they transition to packet based networks.

通過我們的 FlexSelect 架構願景，我們向服務提供商和企業客戶展示瞭如何在過渡到基於數據包的網絡時獲得前所未有的網絡靈活性、可管理性和更低的成本。

We're also taking an aggressive position in defining how to optimally deliver Ethernet and layer 2 services.

我們還在定義如何以最佳方式提供以太網和第 2 層服務方面採取積極的立場。

The initial traction we're seeing for our CN 4200 FlexSelect Advanced Services platform provides tangible evidence, we believe, that our vision is resonating.

我們相信，我們的 CN 4200 FlexSelect 高級服務平台的初步吸引力提供了切實的證據，表明我們的願景正在引起共鳴。

Not only is this product part of BT's 21st Century Network but it halls also been deployed by Swisscom, and during Q1 we also announced its selection by Slovenia'sT-2 for a new nationwide next generation VDSL network and by ProgressTelecom in the United States for 10G DWDN metro and regional transport.

該產品不僅是 BT 的 21 世紀網絡的一部分，而且它還被 Swisscom 部署，在第一季度，我們還宣布它被斯洛文尼亞的 T-2 選擇用於新的全國性下一代 VDSL 網絡，並被美國的 ProgressTelecom 選擇用於10G DWDN 城域網和區域傳輸。

Ciena's key differentiator has always been the practical application of technology and an appreciation of the business needs of our customers, and this continues to be a fundamental part of our approach to the market.

Ciena 的主要差異化因素一直是技術的實際應用和對客戶業務需求的理解，這仍然是我們進入市場的基本組成部分。

We expect a significant portion of our 2006 revenue growth will come from existing customers, where we're leveraging our incumbency and proving our value as a strategic partner to them.

我們預計 2006 年收入增長的很大一部分將來自現有客戶，我們正在利用現有客戶並向他們證明我們作為戰略合作夥伴的價值。

With service providers, our recent announcement with Telmex is an excellent example of this.

對於服務提供商，我們最近與 Telmex 的合作就是一個很好的例子。

As many of you may remember, we started selling our CoreDirector multi-service optical switch to Telmex several years ago.

許多人可能還記得，幾年前我們開始向 Telmex 銷售我們的 CoreDirector 多服務光開關。

As a strategic vendor to Telmex, we're now providing the value of our FlexSelect architecture including CoreStream agility long haul optical transport for scalable capacity, design flexibility and network automation across the Telmex network.

作為 Telmex 的戰略供應商，我們現在提供我們的 FlexSelect 架構的價值，包括 CoreStream 敏捷長途光傳輸，以實現 Telmex 網絡的可擴展容量、設計靈活性和網絡自動化。

Touching briefly on our other customer segments in the government space, specifically, over the last year we have worked to enhance our support for government customers with a government-dedicated subsidiary and advisory board.

簡要介紹一下我們在政府領域的其他客戶群，具體來說，在過去的一年裡，我們一直致力於通過政府專用子公司和諮詢委員會來加強對政府客戶的支持。

As a result of our actions and high profile government activity like GIG-BE, we've begun to build significant brand awareness in this important market, and this quarter we announced we expanded our involvement with the U.S.

由於我們的行動和像 GIG-BE 這樣備受矚目的政府活動，我們已經開始在這個重要市場建立重要的品牌知名度，本季度我們宣布我們擴大了在美國的參與。

Department of Energy, with product deployment at both Oak Ridge National Laboratory and the Fermi National Accelorator Laboratory.

能源部，產品部署在橡樹嶺國家實驗室和費米國家加速器實驗室。

Finally, in the enterprise market, capacity demands for bandwidth-intensive applications and business continuity concerns are driving forces behind enterprise activity.

最後，在企業市場中，帶寬密集型應用程序的容量需求和業務連續性問題是企業活動背後的驅動力。

And while still a small overall percentage of our business, enterprise users are more and more demanding extreme network reliability and are turning to carrier class solutions, like Ciena's, to address general business continuity applications as well as a variety of industry-specific applications.

雖然在我們的業務中所佔的比例仍然很小，但企業用戶對極端網絡可靠性的要求越來越高，並且正在轉向運營商級解決方案（如 Ciena 的解決方案）來解決一般業務連續性應用程序以及各種特定於行業的應用程序。

This is particularly true, I think, in the financial, health care and retail verticals, where we're getting involved with enterprise build through our service provider partners, as well as through channel partners like EMC.

我認為，在金融、醫療保健和零售垂直領域尤其如此，我們正在通過我們的服務提供商合作夥伴以及 EMC 等渠道合作夥伴參與企業建設。

For instance, in healthcare: Ciena's adaptive LAN solution enables HIPAA compliance, remote storage extension and picture archiving communications systems.

例如，在醫療保健領域：Ciena 的自適應 LAN 解決方案支持 HIPAA 合規性、遠程存儲擴展和圖片存檔通信系統。

Recently announced healthcare users include UC Davis Medical Center, Trinity Health and the Children's Hospital in Denver.

最近宣布的醫療保健用戶包括加州大學戴維斯分校醫療中心、Trinity Health 和丹佛兒童醫院。

Whilst we are seeing signs that the overall market is improving, we clearly still have work to do to continue to drive operating performance, and I will spend the remainder of my prepared remark addressing this topic.

雖然我們看到整體市場正在改善的跡象，但我們顯然仍有工作要做，以繼續推動經營業績，我將用我準備好的評論的剩餘部分來討論這個話題。

Firstly let's focus on gross margin, and as Joe noted we delivered gross margin improvement for the fourth straight quarter.

首先讓我們關注毛利率，正如喬指出的那樣，我們連續第四個季度實現了毛利率的改善。

I think we've consistently stated our goal to return Ciena's business to one that operates with a gross margin of 40% or better.

我認為我們一直在聲明我們的目標是將 Ciena 的業務恢復到 40% 或更高的毛利率。

Delivering a first quarter better than 40% gross margin is clearly a big achievement, but we can't stop there.

第一季度毛利率超過 40% 顯然是一項巨大的成就，但我們不能就此止步。

Much of our gross margin improvement to date has come as a result of our efforts to reduce product and manufacturing related costs and we'll continue with our efforts on this front.

迄今為止，我們毛利率的大部分改善是由於我們努力降低產品和製造相關成本，我們將繼續在這方面努力。

In addition, our gross margin improvement is evidence of the results of our efforts to diversify our portfolio over the last two years, both through acquisition and through internal development.

此外，我們的毛利率提高證明了我們在過去兩年中通過收購和內部開發努力使我們的產品組合多樣化的結果。

On a quarter to quarter basis, we continue to see the potential for certain amount of gross margin volatility based on product mix, customer mix and volume, but at this point we feel strongly that we've established a new gross margin baseline of 40%.

在每個季度的基礎上，我們繼續看到基於產品組合、客戶組合和數量的一定數量的毛利率波動的可能性，但在這一點上，我們強烈認為我們已經建立了 40% 的新毛利率基準.

Joe will speak to our Q1 expectations in more detail during the guidance portion of our prepared remarks later.

稍後，喬將在我們準備好的評論的指導部分更詳細地談到我們對第一季度的期望。

In addition to gross margin improvement, we're also focused on driving continued operating expense reductions and as Joe noted our as adjusted operating expenses in Q1 was down some 8% from Q4, further evidence we're continuing to execute on a plan that drives towards a more normalized operating model.

除了提高毛利率外，我們還專注於推動持續的運營費用削減，正如 Joe 指出的那樣，我們第一季度調整後的運營費用比第四季度下降了約 8%，這進一步證明了我們將繼續執行一項推動的計劃走向更加規範化的運營模式。

In addition to prioritizing our forward investments, focusing our dollars on the most significant opportunities where we have the highest probability of executing successfully, we've also been working to fully optimize and leverage each dollar spent.

除了優先考慮我們的遠期投資，將我們的資金集中在我們最有可能成功執行的最重要的機會上，我們還一直在努力充分優化和利用每一分錢。

For instance, over the last twelve months we've been moving away from our traditional product-based R&D organization to a model of one of core competency-based R&D, where we're able to leverage our engineering resources and expertise across a broader range of products and solutions sets.

例如，在過去的十二個月裡，我們一直在從傳統的基於產品的研發組織轉變為一種基於核心能力的研發模式，在這種模式下，我們能夠在更廣泛的範圍內利用我們的工程資源和專業知識產品和解決方案集。

Convergence in the network is driving convergence in traditional product lines and functionality cross over.

網絡融合正在推動傳統產品線和功能交叉的融合。

Going forward we believe these lines will only blur further.

展望未來，我們相信這些界限只會進一步模糊。

Thinking about our R&D resources and our technology expertise as a pallet, we can apply across our solution sets versus as product specific will we believe stimulate and encourage that convergence.

將我們的研發資源和我們的技術專長視為一個托盤，我們可以將我們的解決方案集應用於我們認為會刺激和鼓勵這種融合的特定產品。

For instance, we're already applying the Ethernet-based competency and functionality gained from the development of our CN4200 FlexSelect Advanced Services platform to our core switching and multi-service switching development efforts.

例如，我們已經將開發 CN4200 FlexSelect 高級服務平台所獲得的基於以太網的能力和功能應用到我們的核心交換和多服務交換開發工作中。

In addition to better leveraging our R&D model, we also believe we can get more leverage from our overall business model.

除了更好地利用我們的研發模式外，我們還相信我們可以從我們的整體商業模式中獲得更多的影響力。

We can and will get more efficiency gains; in part by improving our processes and systems to enable us to scale our business without necessarily scaling our head count at the same rate.

我們能夠而且將會獲得更多的效率收益；部分是通過改進我們的流程和系統，使我們能夠擴展我們的業務，而不必以相同的速度擴展我們的員工人數。

We'll also look to augment our partnership programs to enable us to expand our portfolio and sales reach without adding incremental relative costs.

我們還希望擴大我們的合作夥伴計劃，使我們能夠在不增加增量相關成本的情況下擴大我們的產品組合和銷售範圍。

In summary, we continue to make good progress on a number of fronts.

總之，我們在許多方面繼續取得良好進展。

Revenue growth is coming from improved market strength and as a result of our role as the network specialist and our vision for network transition.

收入增長來自市場實力的增強，以及我們作為網絡專家的角色和我們對網絡轉型的願景。

Gross margin improvement will come from our evolving product mix as well as from additional product and manufacturing related cost reductions.

毛利率的提高將來自我們不斷發展的產品組合以及額外的產品和製造相關成本的降低。

And our operating cost reductions will come as a result of our working towards additional efficiencies.

我們努力提高效率，從而降低運營成本。

Going forward, the challenges we're facing will be substantially different than those we've faced for the last several years.

展望未來，我們面臨的挑戰將與過去幾年所面臨的挑戰大不相同。

Going forward I believe more of our challenges will be tied to growing and scaling the business.

展望未來，我相信我們更多的挑戰將與業務的增長和擴展有關。

For instance, last quarter we talked about the onset of what seemed to be a trend towards larger order sizes for many of our service provider customers.

例如，上個季度我們談到了我們的許多服務提供商客戶似乎開始出現更大訂單量的趨勢。

The good news is we're seeing this trend continue.

好消息是我們看到這種趨勢仍在繼續。

But in addition to driving fluctuations in cash use, as was the case with our increased inventory this quarter, larger order sizes can introduce the potential for quarter-to-quarter revenue fluctuation on top of what is otherwise a steadily growing business.

但是除了推動現金使用的波動之外，就像我們本季度增加的庫存一樣，更大的訂單量可能會在穩步增長的業務之外引入季度收入波動的可能性。

We're not saying this will happen -- we're just reminding you that it could.

我們並不是說這會發生——我們只是提醒您它可能會發生。

In addition for the first time in many years we're facing challenges associated with ramping to meet demand.

此外，多年來我們第一次面臨與滿足需求相關的挑戰。

These are challenges we faced before and we're working through them, but it does require working closely with our supply chain including contract manufacturers and component suppliers.

這些是我們以前面臨的挑戰，我們正在努力解決這些挑戰，但這確實需要與我們的供應鏈密切合作，包括合同製造商和零部件供應商。

To recap on our expectations for 2006 overall, we expect our specialist positioning will enable us to continue to grow faster than the market.

回顧一下我們對 2006 年的整體預期，我們預計我們的專業定位將使我們能夠繼續以高於市場的速度增長。

New bandwidth demands and the need for network transition are fueling what seems to be the onset of a new spending cycle and Ciena is well positioned to benefit from this.

新的帶寬需求和網絡轉型的需要正在推動新的支出週期的開始，而 Ciena 已做好充分準備從中受益。

During 2005 Ciena grew faster than the market because the areas we chose to focus on, our specialties are growing faster than the overall market and because we were able to take share from competitors.

2005 年 Ciena 的增長速度快於市場，因為我們選擇關注的領域、我們的專業增長速度快於整個市場，並且因為我們能夠從競爭對手那里奪取份額。

At the highest level our sales plan for 2006 is to keep doing exactly that, focus on our specialties and continue to take share.

在最高層面上，我們 2006 年的銷售計劃是繼續這樣做，專注於我們的專業並繼續佔有份額。

As a result of our revenue growth and steps we're taking to improve our financial performance, I would like to reiterate what I said last quarter.

由於我們的收入增長和我們正在採取措施改善我們的財務業績，我想重申我上個季度所說的話。

Though we're not willing to provide an estimate on the quarterly timing today, if we execute on plan, we do expect to achieve profitability on an as adjusted basis during the quarter prior to the end of fiscal 2006.

雖然我們今天不願意提供季度時間的估計，但如果我們按計劃執行，我們確實希望在 2006 財年結束之前的那個季度實現調整後的盈利。

With that, Joe, will you walk us through the guidance for Q2, please?

有了這個，喬，你能給我們介紹一下第二季度的指導嗎？

Definitely, Gary; thanks very much.

當然，加里；非常感謝。

Before I begin to offer our guidance, I will remind everyone the statements Gary just made and those that I am about to make are forward-looking.

在我開始提供我們的指導之前，我會提醒大家 Gary 剛剛和我將要發表的聲明都是前瞻性的。

It is important to review these risk factors detailed in our 10-K in order to understand the factors that might cause actual results to differ materially from this guidance.

重要的是要查看我們的 10-K 中詳述的這些風險因素，以便了解可能導致實際結果與本指南存在重大差異的因素。

As stated in the press release depending on the timing of revenue recognition associated with orders from several larger customers, we expect our fiscal second quarter revenue could increase by as much as 7% sequentially from our fiscal first quarter revenue.

正如新聞稿中所述，根據與幾個較大客戶的訂單相關的收入確認時間，我們預計我們第二財季的收入可能比第一財季的收入環比增長 7%。

Gross margin is difficult for us to predict with accuracy as it ultimately depends on a combination of volume, product mix, customer mix and the effects of our ongoing product cost reductions.

我們很難準確預測毛利率，因為它最終取決於銷量、產品組合、客戶組合以及我們持續降低產品成本的影響。

That said, we expect the second quarter's gross margin will be roughly flat with the first quarter's at 42.1%.

也就是說，我們預計第二季度的毛利率將與第一季度的 42.1% 大致持平。

We also expect overall operating expenses in the second quarter exclusive of any unusual or non-operating items will be roughly flat with first quarter's, reflecting our ongoing efforts to gain operating efficiencies.

我們還預計，不包括任何異常或非運營項目的第二季度總體運營支出將與第一季度大致持平，反映出我們為提高運營效率所做的持續努力。

We expect other income expense in the second quarter will be income of approximately $4 million.

我們預計第二季度的其他收入支出約為 400 萬美元。

We estimate the second quarter share count at approximately 584 million total shares.

我們估計第二季度的總股數約為 5.84 億股。

As a result we expect that exclusive of unusual or non-operating items and exclusive of share based payment related 123-R values our adjusted net loss for the second quarter will be a loss of approximately $0.01per share.

因此，我們預計，不包括異常或非經營項目以及與基於股份的支付相關的 123-R 價值，我們第二季度調整後的淨虧損將約為每股 0.01 美元。

Finally on cash, while we will not be making our semi-annual interest payment in the second quarter, we expect overall operating cash needs will be roughly flat with the first quarter's at $32 million, as a result of increased working capital needs.

最後在現金方面，雖然我們不會在第二季度支付半年利息，但由於營運資金需求增加，我們預計整體運營現金需求將與第一季度大致持平，為 3200 萬美元。

And now, operator, we will take questions from the sell-side analysts.

現在，運營商，我們將接受賣方分析師的提問。

Thank you. [OPERATOR INSTRUCTIONS.] We'll go first to Ehud Gelblum with J.P. Morgan.

謝謝你。 [操作員說明。]我們將首先與 J.P. Morgan 一起去 Ehud Gelblum。

Thank you -- you caught me off-guard on that one.

謝謝 - 你讓我措手不及。

A couple things.

幾件事。

First of all, if you can actually talk a little bit about the market that you're saying is expanding and is continuing to grow with these large order sizes.

首先，如果你真的能談談你所說的市場正在擴大，並且隨著這些大訂單的增加而繼續增長。

Two things I am wondering.

我想知道兩件事。

One, you said you would grow faster than the market.

一，你說你會比市場增長得更快。

Can you pinpoint the areas you think you're growing faster, why, aside from the 4200 which seems to be a separate piece if you look more at your optical business.

你能指出你認為你增長更快的領域嗎，為什麼，除了 4200 之外，如果你更多地關注你的光學業務，它似乎是一個獨立的部分。

What areas are growing the fastest within optical and where are you taking share, who are you taking it from and why do you think that you're being successful as you are there?

光學領域哪些領域增長最快？您從哪裡獲得份額，您從誰那裡獲得份額？為什麼您認為您在那裡取得了成功？

Let me answer that Ehud.

讓我回答那個埃胡德。

I think if you were to summarize it, it is getting more difficult to talk about the segments because they are in fact converging.

我想如果你要總結一下，談論這些細分市場會變得越來越困難，因為它們實際上正在融合。

It is an overused word.

這是一個被過度使用的詞。

I think it is happening.

我認為它正在發生。

I think if you summarize it as really anything requiring Ethernet transport, if you were to keep it simple, we see that market growing faster than the overall market, and really that's where we've invested over the last few years specifically 4200 is one articulation of that.

我認為，如果您將其總結為任何需要以太網傳輸的東西，如果您要保持簡單，我們就會看到該市場的增長速度快於整體市場，這確實是我們過去幾年投資的地方，特別是 4200 是一個表達那個。

In the metro space you probably say that you know you're seeing stronger growth there than elsewhere, and I think that's fair to say, but I really characterize it as the Ethernet transport space.

在城域空間，你可能會說你知道你在那裡看到比其他地方更強勁的增長，我認為這樣說很公平，但我真的把它描述為以太網傳輸空間。

In this quarter you said long haul acrually grew faster than metro and in the past you said that metro is growing faster than long haul.

在本季度，您說長途航線的實際增長速度快於地鐵，過去您說地鐵的增長速度快於長途航線。

From quarter to quarter you are going to get product fluctuations.

每個季度都會出現產品波動。

That's really my point, Ehud -- calling it metro and long haul is really blurred.

這真的是我的觀點，埃胡德——把它稱為地鐵和長途真的很模糊。

You have a lot of capabilities on the regional line system you can classify as Metro.

您在可以歸類為 Metro 的區域線路系統上擁有很多功能。

You have a lot of reach on the 4200 you could classify as regional or long haul.

您可以將 4200 歸類為區域或長途。

If I look it the some of the applications, that's why the more traditional segments that grew in the late 90's and early 2000 I think are being blurred now and you're really looking at the edge demand driving the Metro and the core.

如果我看一些應用程序，這就是為什麼我認為在 20 世紀 90 年代末和 2000 年初增長的更傳統的細分市場現在正在變得模糊，而你真正看到的是推動地鐵和核心的邊緣需求。

And as we look at our product families, there is a blur across them.

當我們審視我們的產品系列時，它們之間的界限模糊不清。

You have capabilities for long haul in the Metro and Metro in the long haul.

從長遠來看，您有能力在 Metro 和 Metro 中進行長途運輸。

I think you're going to continue to see that.

我想你會繼續看到這一點。

And do you think you will continue to gain share over the next couple of years, or this is just out of the starting gate as the market begins to go?

你認為你會在未來幾年繼續獲得市場份額，還是隨著市場開始走低，這才剛剛起步？

I think we've refreshed our portfolio and we've invested to make sure that we've got the right kind of value propositions to what we thought the market would do, and that's certainly our goal.

我認為我們已經更新了我們的投資組合，我們進行了投資以確保我們對我們認為市場會做的事情有正確的價值主張，這當然是我們的目標。

We think we're well positioned for it.

我們認為我們已經做好了準備。

But we've got to execute well.

但我們必須執行得很好。

Okay.

好的。

Thanks.

謝謝。

We'll go next to Cobb Sadler with Deutsche Bank.

我們將與德意志銀行一起去 Cobb Sadler。

Thanks a lot.

非常感謝。

I have a quick question on the DSL business.

我有一個關於 DSL 業務的快速問題。

Can you tell us kind of where you are in the upgrade cycle, so what portion of the business is line card adds in existing DLCs that you upgraded and then what is new footprint expansion?

您能否告訴我們您在升級週期中所處的位置，那麼業務的哪一部分是線卡添加到您升級的現有 DLC 中，然後什麼是新的足跡擴展？

Also, could you tell us roughly what the mix is between the Lucent upgrades versus Marconi/Fujitsu?

另外，您能否大致告訴我們 Lucent 升級與 Marconi/Fujitsu 之間的組合是什麼？

Cobb, that's sort of detailed information, it isn't, we don't think appropriate to divulge.

科布，那是一些詳細的信息，不是，我們認為不宜透露。

I understand the question.

我明白這個問題。

What we are seeing is that the CNX5 platform sells into all of the R box, and most of it is replacement of line cards, and that's a mix in any quarter between cards and new chassis and I think it is fair to say we've seen a fair mix of both new footprints and cards going into it the existing chassis.

我們看到的是 CNX5 平台銷售到所有 R 盒中，其中大部分是線路卡的更換，這是卡和新機箱之間任何季度的混合，我認為可以公平地說我們已經在現有機箱中看到了新封裝和卡的公平組合。

OK, great.

好，很好。

And then just a follow up on British Telecom, I know you don't want to talk about how big the deal is.

然後只是對英國電信的跟進，我知道你不想談論這筆交易有多大。

Could you tell us if you're chasing or maybe if you won business at BT outside of the 21CN deal?

你能告訴我們你是否正在追逐或者你是否在 21CN 交易之外贏得了 BT 的業務？

And then also, could you give us the relative contribution for the three products within the 21CN deal if you can't give us the overall?

還有，如果你不能給我們整體的話，你能給我們說一下21CN交易中這三個產品的相對貢獻嗎？

Okay.

好的。

[Laughter] That was pretty good, Cobb.

[笑聲] 非常好，科布。

Thanks a lot.

非常感謝。

Let me try and answer what we're prepared to answer of that.

讓我試著回答我們準備回答的問題。

I think it is fair to say we've received our first orders from BT.

我認為可以公平地說，我們已經收到了來自 BT 的第一批訂單。

The second part of your question is have we got any orders outside of Century 21.

你問題的第二部分是我們是否收到了 Century 21 以外的任何訂單。

I think we can confirm that as well.

我想我們也可以確認這一點。

We are broadening our reach within BT and the various operating activities as well, so it is so far so good.

我們正在擴大我們在 BT 和各種運營活動中的影響力，所以到目前為止一切都很好。

Okay.

好的。

Thanks.

謝謝。

We'll go next to Tim Daubenspeck with Pacific Crest Securities.

接下來我們將介紹 Pacific Crest Securities 的 Tim Daubenspeck。

The three top 10, how many international, how many domestic?

前10名的三個，國際多少，國內多少？

Tim, this is Joe.

蒂姆，這是喬。

Let me take that one.

讓我拿那個。

They're all domestic according to Suzanne.

根據 Suzanne 的說法，它們都是國內的。

Great.

偉大的。

And I know there is the product lines are blurring, But what's your expectation for the traditional long haul transport market as we move into calendar '06?

我知道產品線正在模糊，但是隨著我們進入 06 年日曆，您對傳統的長途運輸市場有何期望？

We had a solid '05.

我們有一個穩定的 05 年。

Are you seeing indications at least with your customers that the traditional long haul market is seeing pockets of strength and some of this is sustainable?

您是否至少從您的客戶那裡看到了傳統長途市場正在看到一些優勢並且其中一些是可持續的跡象？

Let me answer that.

讓我來回答。

To follow from what Gary said, as you drive demand in at the edge of the network, that drives bandwidth demands back into most Metro and what you call inter-city core.

按照 Gary 的說法，當您推動網絡邊緣的需求時，這會將帶寬需求推回大多數地鐵和您所說的城際核心。

The real issue is you're seeing blurring of the definitions of what is long haul and what is Metro application space.

真正的問題是您看到什麼是長途傳輸和什麼是 Metro 應用程序空間的定義變得模糊。

The overall bandwidth demands on the network are increasing and moving from SONET/SDH based services to 10 gig Ethernet based services.

網絡的整體帶寬需求正在增加，並且正在從基於 SONET/SDH 的服務轉移到基於 10 gig 以太網的服務。

And so all of the platforms we've got now provide that kind of a service suite and they do it over varying distances.

因此，我們現在擁有的所有平台都提供這種服務套件，並且它們在不同的距離上提供服務。

It is a very flexible platform architecture that we've put together.

這是一個我們放在一起的非常靈活的平台架構。

Okay.

好的。

Thank you.

謝謝你。

We'll go next to Nikos Theodosopoulos with UBS.

我們將與 UBS 一起前往 Nikos Theodosopoulos。

Yes, thank you.

是的，謝謝。

I had a clarification first, and then a question.

我先是澄清一下，然後是一個問題。

You gave the break downs with within TSG this quarter.

你給出了本季度 TSG 內部的故障。

Do you have the break downs for last quarter specifically as well?

您是否也有具體的上個季度的故障？

Nikos, this is Joe.

尼科斯，這是喬。

No, I do not but we can get that to you later.

不，我不知道，但我們可以稍後再給你。

Well, my question then is on BT.

那麼，我的問題是關於 BT 的。

How do you expect this contract to ramp over the next couple of quarters now that you have initial orders?

既然您有初始訂單，您預計該合同在接下來的幾個季度內會如何增長？

Do you expect like a gradual revenue ramp over the next two to three quarters or would you expect you know, a big one-time pop in orders that would be recurring, whatever that number is on a quarterly basis and what is that, what does the BT contract do if anything to your margin profile?

您是否期望在接下來的兩到三個季度內收入逐漸增加，或者您是否期望您知道，一次性的大量訂單會重複出現，無論這個數字是按季度計算的，那是什麼，是什麼BT 合約對您的保證金情況有何影響？

Nickos, let me take that.

Nickos，讓我接受。

I think my overall comment is it's very early days.

我認為我的總體意見是現在還為時尚早。

It wouldn't be appropriate to guess as to how this is going to roll out.

猜測這將如何推出是不合適的。

I don't think based on what I am seeing now, I don't expect it to be a huge initial pop and then go down.

根據我現在所看到的情況，我不認為它會是一個巨大的初始流行然後下降。

I think from what I can tell right now, I think it is going to be a fairly steady ramp as we roll out this network.

我認為，據我現在所知，我認為隨著我們推出這個網絡，這將是一個相當穩定的增長。

One of the benefits is we've got three of our portfolio platforms out there, so it gives us a little bit of balance when they're building the core and the building the edge out in the Metro.

其中一個好處是我們已經擁有了三個我們的產品組合平台，所以當他們在 Metro 中構建核心和構建邊緣時，它給了我們一點平衡。

We're participating in a lot of that, so I can -- that should help balance it out.

我們參與了很多，所以我可以——這應該有助於平衡它。

But I think we're at the fairly early stages of it.

但我認為我們還處於相當早的階段。

I would say that we do expect to recognize the initial, some initial revenues in Q2.

我會說我們確實希望在第二季度確認最初的一些初始收入。

I think you can tell from the margin guidance, I think Joe was talking about fairly flat with Q1, so I think that you can draw some conclusion from that, but I don't think it is appropriate to be more specific than that.

我認為你可以從保證金指導中看出，我認為喬在談論 Q1 相當平坦，所以我認為你可以從中得出一些結論，但我認為比這更具體是不合適的。

Okay.

好的。

Just one last one on BT.

BT 上的最後一個。

Your comments earlier, Joe, on DSO, the mix going international, does BT fall in that commentary?

Joe，你之前對 DSO 的評論，混合走向國際，BT 是否屬於該評論？

Is that an example of an international customer that's going to have longer payment terms?

這是國際客戶付款期限更長的例子嗎？

As relates to DSOs, yes, but I would caution you don't be real focused on BT as a part of that issue.

就 DSO 而言，是的，但我要提醒您不要真正關注 BT 作為該問題的一部分。

It is just as you go more and more internationally, Nikos.

就像你越來越國際化一樣，Nikos。

They want longer payment terms.

他們想要更長的付款期限。

The revenue recognition cycles are a little bit longer as well.

收入確認週期也稍長一些。

A lot of the growth and stuff Gary was talking about earlier right now from what we see, there is probably more in the European arena than there is in the United States arena.

從我們所看到的情況來看，加里早些時候談論的很多增長和東西，歐洲舞台上可能比美國舞台上的更多。

So that's why we said that.

所以這就是我們這麼說的原因。

Okay.

好的。

Thank you.

謝謝你。

We'll go next to Simon Leopold with Morgan Keegan.

我們將和 Morgan Keegan 一起去 Simon Leopold 旁邊。

Thank you.

謝謝你。

I would like to get a clarification in and then the question.

我想得到澄清，然後是問題。

On the -- Joe, when you ran down the TSG break down, you talked about long haul switching and metro, I think the percentages were 47, 19, 16.

關於——喬，當你遇到 TSG 故障時，你談到了長途交換和地鐵，我認為百分比是 47、19、16。

What's missing?

少了什麼東西？

What's the other part?

另一部分是什麼？

To get us to 100%?

讓我們達到 100%？

I do believe it was the Ethernet storage, CN4200, those three lines.

我相信是以太網存儲、CN4200、這三行。

We haven't given you the detail on each of those three, Simon.

西蒙，我們還沒有詳細介紹這三者中的每一個。

I just want to make sure I had apples and apples.

我只是想確保我有蘋果和蘋果。

Yes, sir.

是的先生。

Great.

偉大的。

The actual question, looking it some of the post merger environment of the old SBC buying the old AT&T and us getting used to calling it AT&T and now Verizon merging into MCI, if you could talk about your exposure, your outlook, your sense of what the implications are for your business, the role you can play and your confidence in those expectations, and maybe put it in commentary related to the sense that maybe these carriers try to reduce their number of suppliers and how you end up in that race.

真正的問題，看看它是舊 SBC 收購舊 AT&T 的一些合併後環境，我們習慣稱它為 AT&T，現在 Verizon 併入 MCI，如果你能談談你的風險，你的前景，你對什麼的看法這對您的業務、您可以扮演的角色以及您對這些期望的信心都有影響，並且可能會把它放在與這些承運人可能試圖減少其供應商數量以及您如何結束這場比賽的感覺相關的評論中。

Thank you.

謝謝你。

Good question, Simon.

好問題，西蒙。

I think it is too soon to say overall.

我認為現在說整體還為時過早。

Things are still shaking out.

事情還在動搖。

I think from the early indications I am happy to share those with you.

我想從早期的跡象來看，我很樂意與你分享這些。

I think we feel pretty positive about it from what we can see so far.

我認為，從目前我們所看到的情況來看，我們對此感到非常積極。

I think we're fortunate in that we're predominantly providing different set of products to the various merged companies before they got together, so the good news from our point of view is that we're now providing multiple products to these new merged carriers, and I think we feel that we're pretty well positioned to leverage that and work with them.

我認為我們很幸運，因為在合併後的公司合併之前，我們主要向他們提供不同的產品集，所以從我們的角度來看，好消息是我們現在正在為這些新合併的運營商提供多種產品，而且我認為我們覺得我們完全有能力利用這一點並與他們合作。

There is always some uncertainty there as these things happen, but I think generally speaking from what we've seen so far we view it pretty positively, and it leverages off a lot of the solution sets that we've got across multiple products, and I think as they look to transition their networks we can help them put that together with our FlexSelect architecture and our vision I think is pretty well suited to what they're trying to do.

隨著這些事情的發生，總會存在一些不確定性，但我認為總的來說，從我們目前所看到的情況來看，我們對它的看法是非常積極的，它利用了我們在多個產品中獲得的許多解決方案集，並且我認為當他們希望過渡他們的網絡時，我們可以幫助他們將其與我們的 FlexSelect 架構和我認為非常適合他們正在嘗試做的事情的願景結合起來。

You're always cautious when these things happen and historically in the late 90s, early 2000, I think we'd have concluded it was definitely bad news for everybody.

當這些事情發生時，你總是很謹慎，從歷史上看，在 20 世紀 90 年代末，2000 年初，我想我們已經得出結論，這對每個人來說絕對是個壞消息。

I think we have to pick through the details of each of them to conclude whether it is good or bad us for us, and I think so far we feel pretty positive about it.

我認為我們必須從每個細節中挑選出來，才能得出對我們來說是好是壞的結論，我認為到目前為止我們對此感到非常積極。

Is it your assessment that because of some of the regulatory issues related to 271 that AT&T may move slowly where Verizon may move more quickly?

您是否認為由於與 271 相關的一些監管問題，AT&T 可能會行動緩慢，而 Verizon 可能會行動得更快？

Is that what you're seeing as well?

這也是你所看到的嗎？

I really think that's too early.

我真的覺得太早了。

I am not dodging the question completely, Simon.

我並沒有完全迴避這個問題，西蒙。

I think it really is too early to tell.

我認為現在下結論還為時過早。

We're seeing the new AT&T be pretty aggressive about its architecture plans.

我們看到新的 AT&T 對其架構計劃非常積極。

They're certainly going to go be to be moving similar kind of pace is my take on it.

他們肯定會以類似的步伐前進，這是我的看法。

Okay.

好的。

Thank you.

謝謝你。

We'll go next to Paul Silverstein with Credit Suisse.

接下來我們將與瑞士信貸的 Paul Silverstein 一起討論。

Joe, Gary, can you hear me?

喬，加里，你能聽到我說話嗎？

Yes.

是的。

Great.

偉大的。

If you already answered these questions I apologize and skip it and I will take it off line.

如果您已經回答了這些問題，我深表歉意並跳過它，我將把它下線。

Can you talk about 4200 trial activity in perhaps some relative terms, what you're seeing today versus quarter ago, how that's tracking and also if you could talk about non-BT international demand, and if you already answered these questions I will take it off line.

你能不能用一些相對的術語來談談 4200 試驗活動，你今天看到的與一個季度前相比，它是如何跟踪的，以及你是否可以談談非 BT 國際需求，如果你已經回答了這些問題，我會接受離線。

I think we covered part of them but I don't think we've talked to those explicitly.

我認為我們涵蓋了其中的一部分，但我認為我們沒有明確地討論過這些問題。

4200 demand across those platforms -- generally we've just seen it grow quarter to quarter.

這些平台上的 4200 需求——一般來說，我們剛剛看到它逐季增長。

We're very pleased with it.

我們對此非常滿意。

That's gone nicely, Steve, and I don't know whether you want it talk about any specific application growth you've seen.

一切順利，史蒂夫，我不知道你是否希望它談論你所看到的任何特定的應用程序增長。

I think one of the things to realize with that platform is it is plays into so many applications spaces out there.

我認為使用該平台要實現的一件事是它可以在如此多的應用程序空間中發揮作用。

It works in healthcare.

它適用於醫療保健。

It works into the financials.

它適用於財務。

It works into the carrier space.

它適用於載體空間。

It works into data center extension and such.

它適用於數據中心擴展等。

The use of the all the flexi-ports where you can define them to be any type of service port you want and change it in the future, that makes it a very widely attractive platform through a number of spaces.

使用所有靈活端口，您可以將它們定義為您想要的任何類型的服務端口，並在將來更改它，這通過許多空間使其成為一個非常具有廣泛吸引力的平台。

We're seeing generally a very broad base of interest in it.

我們通常看到對此有非常廣泛的興趣。

Before you go on to the next question, the non-BT international demand question, can you give us any metrics in terms of percentage and percentage increase in trial activity and customer activity, my metrics you can throw our way in tracking the progress of this platform and also in terms of the gross margins on that box, as volume increases, I assume you're seeing a positive impact on the gross margin line as well.

在你繼續下一個問題之前，非 BT 國際需求問題，你能給我們任何關於試用活動和客戶活動的百分比和百分比增長的指標嗎，我的指標你可以讓我們跟踪這個進度平台以及該盒子的毛利率，隨著銷量的增加，我假設您也看到了對毛利率線的積極影響。

Let me answer that, Paul.

讓我來回答這個問題，保羅。

I think from -- it is from a fairly small base.

我認為 - 它來自一個相當小的基地。

It is growing exponentially if you want a statistic, I would say we have more trials going on now and more activity than we had last quarter, and you could say it is double, to pick a thing that gives you some idea about the kind of activity we've got.

如果你想要一個統計數據，它正在呈指數增長，我想說我們現在正在進行更多的試驗，比上個季度有更多的活動，你可以說它是兩倍，選擇一個讓你對那種類型的東西有所了解的東西我們有的活動。

It is very, very positive.

這是非常非常積極的。

In terms of the European or international growth, and I think by my comment there you can tell what I think it is coming from, outside of BT we're seeing good opportunities throughout Europe both in eastern Europe, and in other countries outside of the U.K., continental Europe.

就歐洲或國際增長而言，我認為通過我的評論你可以看出我認為它來自什麼，在英國電信之外，我們在整個歐洲看到了很好的機會，包括東歐和歐洲以外的其他國家英國，歐洲大陸。

We've got a pretty good user base now.

我們現在有一個很好的用戶群。

You've got Neuf Cegetel, France Telecom, Swisscom -- they're all looking to do things.

Neuf Cegetel、France Telecom、Swisscom——他們都想做點什麼。

We have a number of channel partners addressing eastern Europe and the Enterprise Markets in Europe as well, so I think we're seeing it across the board in all segments, and also in the government and research areas in Europe as well as we've seen in North America.

我們有許多渠道合作夥伴來解決東歐和歐洲的企業市場，所以我認為我們在所有細分市場以及歐洲的政府和研究領域都看到了這一點，而且我們已經見於北美。

Gary, has there been any change in the competitive landscape? [Wame lass] seems like it is more of a force.

加里，競爭格局有什麼變化嗎？ [Wame lass] 似乎更像是一種力量。

Have you seen any of your traditional competitors become more competitive, less competitive, anybody dropping shorts and pricing et cetera.

你有沒有看到你的任何傳統競爭對手變得更有競爭力，競爭力下降，有人放棄空頭和定價等等。

It has been a competitive landscape for awhile.

一段時間以來，這一直是一個競爭格局。

I think those of you will know, and we're still seeing particularly in Europe, you know, you're still seeing Alcatel, particularly.

我想你們中的那些人會知道，我們仍然特別在歐洲看到，你知道，你仍然看到阿爾卡特，特別是。

You're seeing a number of other vendors.

您會看到許多其他供應商。

You're seeing some of the more traditional players.

你會看到一些更傳統的玩家。

I think not focused as much on this space, and I describe somewhat at trophied out of it, and that's helping a little bit.

我認為並沒有那麼關注這個空間，我描述了一些從中獲得的好處，這有點幫助。

There is plenty of other competitors to take their place.

有很多其他競爭對手可以取代他們的位置。

I describe it about the same.

我描述的差不多。

I will pass it on.

我會把它傳遞下去。

Thank you.

謝謝你。

We'll go next to Joe Chiasson with Susquehanna.

我們將和 Susquehanna 一起去 Joe Chiasson 旁邊。

Thanks.

謝謝。

Good morning.

早上好。

Gary, I wonder if you can talk about a trend that has been alluded to by Cisco and others with respect to the fact that optics are increasingly being integrated into things like routing platforms, how you guys sort of see that trend progressing and what specifically any moves you might be making to reconcile your product portfolio with that trend.

加里，我想知道你是否可以談談思科和其他人提到的一種趨勢，即光纖越來越多地被集成到路由平台等事物中，你們如何看待這種趨勢的進展，以及具體有什麼您可能正在採取的措施來使您的產品組合與該趨勢保持一致。

Thanks.

謝謝。

Sure, we've seen an emergence of what you call the small form factor pluggable markets for quite a while.

當然，我們已經看到您所謂的小型可插拔市場的出現已有一段時間了。

That's one of the big global market trends we've identified early and hooked our product designs onto.

這是我們早早發現並與我們的產品設計掛鉤的全球大市場趨勢之一。

We've kind of expected colored optics to say show up in platforms all across the board and from the beginning all of the line systems were designed to handle that exact scenario.

我們有點期待彩色光學器件會出現在所有平台上，並且從一開始所有的線路系統都是為處理這種情況而設計的。

That's how we in fact interwork things like CoreStream and CoreDirector and 4200 is we use that same technology.

事實上，這就是我們將 CoreStream 和 CoreDirector 等東西相互配合的方式，而 4200 就是我們使用相同的技術。

We're well positioned for it.

我們已經做好了準備。

Okay.

好的。

Thanks.

謝謝。

Next to John Marchetti with Morgan Stanley.

旁邊是約翰·馬爾凱蒂和摩根士丹利。

Just a question for you, Joe, on the India operations, how was do you think those can ramp, where you're looking to go take that to and the impact that that might have on some of your OpEx lines?

Joe，關於印度業務，您只是一個問題，您認為這些業務如何發展，您希望將其帶到哪裡，以及這可能對您的某些 OpEx 生產線產生的影響？

John, I am going to hand it over to Steve since that's his responsibility.

約翰，我要把它交給史蒂夫，因為這是他的責任。

He can give you first hand knowledge.

他可以給你第一手的知識。

It is a very good question with him here today.

今天在這裡向他提出一個非常好的問題。

The facility is sized for about 300 people.

該設施的規模可容納約 300 人。

We're early in the ramp.

我們在斜坡上很早。

We haven't officially opened the building in some sense.

從某種意義上說，我們還沒有正式開放這座大樓。

We are hiring.

我們正在招聘。

We are training people.

我們正在培訓人。

At any given time there is probably more people in North America for training than there is in the India facility.

在任何特定時間，北美接受培訓的人數都可能比印度工廠的人數多。

It is going quite well.

進展順利。

We expect to realize the benefits of it ever the next couple of quarters.

我們希望在接下來的幾個季度中實現它的好處。

Mr. Marchetti do you have another question?

Marchetti 先生，您還有其他問題嗎？

All set.

可以了，好了。

Thank you.

謝謝你。

We'll go next to Subu Subrahmanyan.

我們將前往 Subu Subrahmanyan。

Thank you.

謝謝你。

Can you talk a little bit more about the DN platform and the CNX5 in terms of revenue and growth it seems like a lot of it continues to be from TSG if you look at 2006.

你能多談談 DN 平台和 CNX5 在收入和增長方面的情況嗎？如果你回顧 2006 年，似乎其中很多仍然來自 TSG。

Do you still expect that to be the trend?

您仍然認為這會成為趨勢嗎？

Subu, I think as I was talking about earlier with the developmenting going on with DN, we're taking a lot of that functionality on the Ethernet side and putting that into the other products.

Subu，我認為正如我之前談到的關於 DN 的開發，我們在以太網方面採用了很多這樣的功能，並將其放入其他產品中。

We're also putting some of the transport capabilities into the DN piece.

我們還將一些傳輸功能放入 DN 部分。

The product lines are getting blurred from that.

產品線因此而變得模糊。

I think we need to look at our segments very carefully and from a reporting point of view, because I think that is one of the challenges we're having.

我認為我們需要從報告的角度非常仔細地審視我們的細分市場，因為我認為這是我們面臨的挑戰之一。

We see good opportunities for the functionality of DN, be it in that platform or in other platforms that we've got and we're developing.

我們看到了 DN 功能的良好機會，無論是在那個平台上還是在我們已經擁有和正在開發的其他平台上。

I think on the CNX side, Steve, do you want to comment on some of the technology things we're doing with that?

我認為在 CNX 方面，史蒂夫，你想評論我們正在用它做的一些技術事情嗎？

Really falls along the same themes.

確實屬於相同的主題。

What you're seeing is really blurring of the product lines and the application spaces.

您所看到的是產品線和應用程序空間的真正模糊。

The model that Gary alluded to earlier of moving towards one of the R&D centers being core competencies, you're going to find the Ethernet up through IP NPLS core competency the DN group represents, those feature sets will show up on more and more platforms.

加里之前提到的轉向核心競爭力之一的研發中心的模型，您將通過 DN 組代表的 IP NPLS 核心競爭力找到以太網，這些功能集將出現在越來越多的平台上。

So you're going to see them and cooperating with the ones that have [TSG things out of BDG, which are things like] the CNX5 and such.

因此，您將看到它們並與那些擁有 [TSG 的 BDG 之類的東西，例如] CNX5 等的人合作。

You are going to start to see those integrated into the FlexSelect architecture story with flexi-ports showing up on those platforms as well with the rich variety of services it can create.

您將開始看到那些集成到 FlexSelect 架構故事中的東西，這些平台上出現了 flexi-port 以及它可以創建的豐富多樣的服務。

And just on the back on the TSG, would you think as a percentage of revenues it is a bigger percentage of revenues in '06 and I am just wondering does that have any implications for kind of a more of a lumpy revenue trend quarter to quarter fluctuations, as more comes from TSG?

就在 TSG 的背面，您是否認為它佔收入的百分比是 06 年收入的更大百分比，我只是想知道這是否對每季度收入趨勢更加不穩定有任何影響波動，更多來自TSG？

I think with how we're currently looking at that, I would say the TSG, you know, covers a multitude of segments.

我認為根據我們目前的看法，我會說 TSG，你知道，涵蓋了多個部分。

There is a lot of platforms and technologies in there.

那裡有很多平台和技術。

It is a very big bucket which is what I was talking about earlier of trying to articulate what's going on in the business.

這是一個非常大的桶，這就是我之前所說的試圖闡明業務中正在發生的事情。

As you get the convergence going, amongst those platforms it is more and more difficult to talk about them as home genius segments and so that transport, the TSG segment has a lot of pieces to it, Subu.

隨著融合的進行，在這些平台中，越來越難以將它們稱為家庭天才細分市場，因此運輸、TSG 細分市場有很多部分，Subu。

It really does.

確實如此。

Thank you very much.

非常感謝。

We'll go next to Marcus Kupferschmidt with Lehman Brothers.

接下來我們將與雷曼兄弟 (Lehman Brothers) 的 Marcus Kupferschmidt 一起討論。

Good morning, everyone.

大家，早安。

Hi, Marcus.

嗨，馬庫斯。

I want to clarify a couple of things.

我想澄清幾件事。

We talked about the gross margin outlook for the business and continue to be optimistic about improvement but quarter to quarter volatility.

我們談到了該業務的毛利率前景，並繼續對改善持樂觀態度，但每季度都存在波動。

Can you give us a better sense what are the pressure points that you worry about in terms of what creates that quarter to quarter volatility?

您能否讓我們更好地了解您擔心造成季度波動的壓力點是什麼？

It is a complicated mix of products and customers, you know, and the cost reductions and the timing of those, when you get them on the components, when you get them out there, when you get the revenue recognized.

這是產品和客戶的複雜組合，你知道，以及成本降低和時間安排，當你把它們放在組件上，當你把它們放在那裡，當你確認收入時。

There is a lot of aspects and dimensions to this.

這有很多方面和維度。

And that's why it is probably of all the aspects to our business the most difficult to predict with great accuracy on a quarter to quarter basis.

這就是為什麼它可能是我們業務的所有方面中最難按季度準確預測的原因。

You know, I think you've seen us in the last four quarters improve our gross margin and that activity and focus that we've got there, we're working on more cost reductions.

你知道，我認為你在過去四個季度看到我們提高了我們的毛利率以及我們在那裡的活動和重點，我們正在努力降低成本。

We have line of sight to how we can get more cost reductions.

我們對如何進一步降低成本有自己的看法。

We expect a better mix as a result of our overall product portfolio, you know, focused on higher margin products.

我們期望更好的組合，因為我們的整體產品組合專注於更高利潤的產品。

As you get to this convergence as well which generally means Ethernet, et cetera, the gross margins tend to be as a general rule somewhat higher you go up the stack.

當您也達到這種融合時，這通常意味著以太網等，一般來說，毛利率往往會更高一些。

I think you've got some positive overall trends around improving gross margin, the things that impact that are, you know, quite simply the product mix if we're doing a big build on a transport build where the customer is put in a lot of chassis and not a lot of cards in, that can impact it; as you get to the core of the network with more software, that's generally positive.

我認為你在提高毛利率方面有一些積極的總體趨勢，影響的事情很簡單，如果我們在客戶投入很多的交通建設上進行大規模建設，那麼產品組合就會很簡單機箱的數量而不是很多卡，這會影響它；當您使用更多軟件進入網絡核心時，這通常是積極的。

So there's a lot of moving parts to that.

所以這有很多變化的部分。

But I think we're confident overall given what we've seen in the last four quarters that in pricing pressure generally in the marketplace and that's been tough, but it has been tough for a number of years and our value proposition is not about being the cheapest product company.

但我認為，鑑於我們在過去四個季度所看到的情況，我們總體上充滿信心，市場上普遍存在定價壓力，而且這種情況一直很艱難，但多年來一直很艱難，我們的價值主張並不是要最便宜的產品公司。

It is really about the value we have as a solution.

這實際上是關於我們作為解決方案的價值。

We think that overall we can improve the margin from where we are.

我們認為，總體而言，我們可以提高目前的利潤率。

Okay.

好的。

And a couple clarifications you guys kind of thinking near term.

以及你們近期的一些想法。

The comment was the operating expenses should be flattish next quarter.

評論是下個季度的運營費用應該持平。

I guess could I understand a little bit more about that given you're emphasizing you plan to take down the R&D going forward.

鑑於你強調你計劃取消未來的研發，我想我能多理解一點嗎？

You know, I think, Marcus, if I can, Steve answered some of that.

你知道，我想，馬庫斯，如果可以的話，史蒂夫回答了其中的一些問題。

You have the ramp up in India which is costing us more but you have efficiencies we're getting elsewhere to balance that.

你在印度的增長讓我們付出了更多的代價，但你有我們在其他地方獲得的效率來平衡它。

We reduced our OpEx 8% from Q4 to Q1, and I think you can see the overall trend there.

我們從第四季度到第一季度將運營支出減少了 8%，我認為您可以在那裡看到整體趨勢。

Again, a lot of moving parts to that.

同樣，有很多變化的部分。

You have some things we're focused on and investing in to bring up, but we've got some efficiencies that we think are going to continue overall to drive our operating expenses down, not necessarily quarter to quarter, but across the year.

你有一些我們關注並投資的事情，但我們有一些效率，我們認為這些效率將繼續整體降低我們的運營費用，不一定是逐季，而是全年。

And thinking about the nice sequential growth guidance for next quarter, if you think about it by product types, which product do you think are going to be the biggest contributors to the sequential growth you're looking for for the April quarter and let's say even the fiscal year '06?

想想下個季度不錯的連續增長指導，如果你按產品類型考慮，你認為哪種產品將成為你正在尋找的 4 月份季度連續增長的最大貢獻者，讓我們說甚至06 財年？

Marcus, I think you will see it across the board from the access piece, you know, if you look between now and the end of the year, I think you're going to see it on the Metro transport bit, the 4200.

Marcus，我想你會從接入件上全面看到它，你知道，如果你從現在到年底看，我想你會在 Metro transport bit 4200 上看到它。

As I think Joe said we just started taking revenues for it fairly modest right now.

正如我認為喬所說的那樣，我們現在才剛剛開始從中獲得相當適度的收入。

The converged Ethernet space of the FlexSelect 4200 is an area that will grow dramatically for us, where we only recognized a couple million of revenue this quarter for it, and we expect that to increase substantially over the next few quarters.

FlexSelect 4200 的融合以太網空間對我們來說是一個將顯著增長的領域，本季度我們只確認了它的幾百萬收入，我們預計在接下來的幾個季度中會大幅增長。

So you'll see it across the portfolio.

所以你會在整個投資組合中看到它。

If I were to highlight the specific areas around the converged Ethernet space.

如果我要強調融合以太網空間周圍的特定區域。

The same would be true for the April quarter?

四月季度也是如此嗎？

Yeah, I think you're going to see -- those are the trends for the year.

是的，我想你會看到——這些是今年的趨勢。

I think you're borrowing what comes in and out of that quarter, I think you will see the same things in Q4, Q2, sorry.

我認為你是在藉用那個季度進出的東西，我想你會在第四季度、第二季度看到同樣的東西，抱歉。

Okay.

好的。

Thanks.

謝謝。

We'll go next to Todd Koffman with Raymond James.

我們將和雷蒙德·詹姆斯一起去托德·科夫曼旁邊。

Thank you.

謝謝你。

A strategic question.

一個戰略問題。

If you go back a little bit, Ciena had been a pretty aggressive acquirer, many times willing to pay a premium price tag.

如果稍微回顧一下，Ciena 曾經是一個非常激進的收購者，很多時候都願意支付高價。

It has been a couple years since you've, your last sort of notable combination or acquisition and I was wondering what's the latest thinking on this particularly given the rise in your currency.

自從你們上一次值得注意的合併或收購以來已經有幾年了，我想知道最近對此有何看法，特別是考慮到你們的貨幣升值。

Thank you.

謝謝你。

Todd, I think it's fair to say we're working hard on leveraging the pieces that we put together there.

托德，我認為可以公平地說，我們正在努力利用我們在那裡組合的部分。

It was part of a strategy and as Steve said not necessarily focused on the products and the platforms that those acquisitions brought us but really the technology pallet and capability that is very well suited to where receive seen the market go around the converged Ethernet space.

這是戰略的一部分，正如史蒂夫所說，不一定專注於這些收購為我們帶來的產品和平台，而是真正非常適合接收看到市場圍繞融合以太網空間的地方的技術托盤和功能。

I think those acquisitions are part of our longer term strategy to really build a competency around a broader ray of technologies and that's beginning to work for us.

我認為這些收購是我們長期戰略的一部分，旨在圍繞更廣泛的技術真正建立能力，並且開始為我們工作。

That being said, never rule out an acquisition in the future.

話雖這麼說，永遠不要排除未來的收購。

We're really focused right now on the pieces that we have.

我們現在真的很專注於我們擁有的作品。

We think we've got a lot of the things we need to address the market pieces that are growing right now.

我們認為我們有很多我們需要的東西來解決目前正在增長的市場問題。

Thank you.

謝謝你。

We'll go next to Gina Sockolow with Buckingham Research.

接下來我們將與白金漢研究中心的 Gina Sockolow 一起討論。

Thank you.

謝謝你。

When you look at your international revenue in this past quarter and your outlook, what do you think the mix of chassis to cards were and what the trend will be and then within that answer, can you just clarify if you think the what the BT revenue recognitions are how long it will take orders in hand to translate to revenue?

當您查看上個季度的國際收入和前景時，您認為機箱與卡的組合是什麼以及趨勢是什麼，然後在這個答案中，您能否澄清一下您是否認為 BT 收入是多少？認識到手頭的訂單需要多長時間才能轉化為收入？

Thank you.

謝謝你。

Let me have a go at that.

讓我試一試。

I think you saw our international revenues pretty small this quarter sort of about 15% of the total revenues overall.

我認為你看到本季度我們的國際收入很小，大約佔總收入的 15%。

As I said, I think we've got good growth potential internationally with BT and outside of BT as well, places like France Telecom, Neuf Cegetel, Swisscom, et cetera, there is a lot of activity in Europe right now that we're seeing.

正如我所說，我認為我們在 BT 和 BT 以外的國際市場都有良好的增長潛力，比如法國電信、Neuf Cegetel、Swisscom 等，現在我們在歐洲有很多活動看到。

I think our product profile of Cards and chassis is fairly evenly mixed right now and fairly small revenues and we expect that that will change going forward and international specifically Europe greater part of our revenues.

我認為我們的卡片和底盤產品組合目前相當均勻，收入相當小，我們預計未來這種情況會發生變化，尤其是國際，特別是歐洲，我們收入的大部分。

We do expect initial BT revenue in Q1.

我們確實預計第一季度的初始 BT 收入。

In Q2, sorry.

在第二季度，抱歉。

The quarter that we're in right now initial revenues.

我們現在所在的季度有初始收入。

We can't really talk about the size and the scope of it unfortunately publicly.

不幸的是，我們不能真正公開談論它的規模和範圍。

Clearly, it is a large and meaningful deal for us and we're at the early stages of rolling that out.

顯然，這對我們來說是一筆大而有意義的交易，我們正處於推出該交易的早期階段。

That will help, I think, clearly skew the domestic and international revenues to a more favorable mix.

我認為，這將有助於明顯地使國內和國際收入向更有利的組合傾斜。

We've got a lot of other activities in addition to BT as well that I think are going to help, Gina.

除了 BT，我們還有很多其他活動，我認為這些活動也會有所幫助，Gina。

When you say the mix between cards and chassis is about even, that's what I heard you say, then looking out, would you expect higher traffic level to go drive higher margin card sales so that mix and profitability shifts on the international business?

當你說卡和底盤之間的混合是均勻的，這就是我聽到你說的，然後放眼望去，你會期望更高的流量水平來推動更高利潤的卡銷售，從而使國際業務的混合和盈利能力發生變化嗎？

I think one of the things that we're dealing with, Gina, is the traditional markets where on the transport side where you ship a chassis and then put cards in, that's very true.

吉娜，我認為我們正在處理的事情之一是傳統市場，在運輸方面，你運送機箱然後放入卡，這是非常正確的。

We clearly have some of those.

我們顯然有其中一些。

We've also got if you look at the new platforms, the FlexSelect architecture around 4200 family, that really doesn't apply.

我們還發現，如果您查看新平台，即 4200 系列周圍的 FlexSelect 架構，那確實不適用。

You've got a more software based [chassises] and cards that actually come in with that.

你有更多基於軟件的 [機箱] 和實際附帶的卡。

You haven't got a lot of capacity for increased cards with it.

你沒有足夠的容量來增加卡片。

It is a different model I guess is what I am trying to say, Gina.

這是一個不同的模型，我想這就是我想說的，吉娜。

You've got the more traditional space with cards and [chassises] and the more smaller Metro platform that are converged.

你有更傳統的帶有卡和 [機箱] 的空間，以及更小的融合的 Metro 平台。

Is Ethernet transport picks up in the U.S., would you see this scenario falling with first selling the [chassises] in and then getting a better mix of cards?

以太網傳輸是否在美國興起，你會看到這種情況會隨著首先銷售[機箱]然後獲得更好的卡組合而下降嗎？

Gina, a lot depends on of course the size of the platform that some of the big more core facing transports platforms can handle a couple hundred channels overtime so you have a lot of potential card adds.

吉娜，當然，很大程度上取決於平台的規模，一些面向核心的大型傳輸平台可以加班處理幾百個頻道，因此您有很多潛在的卡添加。

Some of the ones out at the edge people put in two and four-slot boxes and some of them buy them full so there isn't a card add business there.

一些在邊緣的人把它們放在兩個和四個插槽的盒子裡，有些人把它們買滿，所以那裡沒有卡添加業務。

It varies tremendously.

它變化很大。

Thank you.

謝謝你。

Thanks, Gina.

謝謝，吉娜。

Thank you.

謝謝你。

In the interest of time that concludes our question and answer session.

為了節省時間，我們的問答環節結束了。

I would now like the turn the call back over to Mr. Smith for closing remarks.

我現在想把電話轉回給史密斯先生作結束語。

Thank you, Gwen, and thank everyone for your time this morning and continued supported.

謝謝你，格溫，感謝大家今天早上抽出時間來繼續支持。

We look forward to seeing many of you at financial conferences during the fiscal second quarter, and at venues like TelecomNext in Las Vegas.

我們期待在第二財季的金融會議上以及在拉斯維加斯的 TelecomNext 等場所見到你們中的許多人。

Thank you.

謝謝你。

Thanks everyone, that concludes today's conference.

謝謝大家，今天的會議到此結束。

You may now disconnect.

您現在可以斷開連接。