Ciena Corp (CIEN) 2023 Q1 法說會逐字稿

Good day, and welcome to the Ciena’s Fiscal First Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Gregg Lampf, Vice President of Investor Relations. Please go ahead.

各位來賓，歡迎參加Ciena公司2023財年第一季財務業績電話會議。 （操作說明）請注意，本次會議正在錄音。現在我將會議交給投資者關係副總裁格雷格·蘭普夫先生。請開始。

Thank you, Jason. Good morning, and welcome to Ciena's 2023 Fiscal First Quarter Results Conference Call. On the call today is Gary Smith, President and CEO; and Jim Moylan, CFO. Scott McFeely, our Senior Vice President of Global Products and Services, is also with us for Q&A. As OFC begins today, our team today is taking calls from the different locations. We ask for your patience during Q&A as we coordinate our responses please. In addition to this call and the press release, we have posted to the Investors section of our website an accompanying investor presentation that reflects this discussion as well as certain highlighted items from the quarter. Our comments today speak to our recent performance, our views on current market dynamics and drivers of our business as well as a discussion of our financial outlook.

謝謝Jason。早安，歡迎參加Ciena 2023財年第一季業績電話會議。今天出席會議的有總裁兼執行長Gary Smith和財務長Jim Moylan。全球產品與服務資深副總裁Scott McFeely也將參與問答環節。由於今天是第一季業績電話會議，我們的團隊成員將在不同地點接聽電話。請各位在問答環節耐心等待，我們會協調回覆。除了本次電話會議和新聞稿之外，我們還在公司網站的投資者關係頁面發布了一份投資者演示文稿，其中涵蓋了本次會議的討論內容以及本季度的一些重點項目。我們今天的演講將涉及公司近期的業績表現、對當前市場動態和業務驅動因素的看法，以及對財務前景的展望。

Today's discussion includes certain adjusted or non-GAAP measures of Ciena's results of operations. A reconciliation of these non-GAAP measures to our GAAP results is included in today's press release. Before turning the call over to Gary, I'll remind you that during this call, we'll be making certain forward-looking statements. Such statements, including our quarterly and annual guidance and our long-term financial outlook, discussion of market opportunities and strategy, commentary about our impacts of supply chain results on our business and end results are based on current expectations, forecasts and assumptions regarding the company and its markets which include risks and uncertainties that could cause actual results to differ materially from the statements discussed today.

今天的討論將涉及Ciena公司經調整或非GAAP準則下的經營業績。這些非GAAP準則下的業績與GAAP準則下的業績之間的調節表已包含在今天的新聞稿中。在將電話會議交給Gary之前，我想提醒各位，在本次電話會議中，我們將做出一些前瞻性陳述。這些陳述，包括我們的季度和年度業績指引、長期財務展望、市場機會和策略探討、供應鏈結果對我們業務和最終業績的影響等，均基於我們對公司及其市場的當前預期、預測和假設，其中包含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。

Assumptions relating to our outlook, which mentioned on this call are included in the investor presentation that will be posted shortly after, are an important part of such forward-looking statements, and we encourage you to consider them. Our forward-looking statements should also be viewed in the context of the risk factors detailed in our most recent 10-K filing and in our upcoming 10-Q filing which is required to be filed with the SEC by March 9, and we expect to file by that date. Ciena assumes no obligation to update the information discussed in this conference call, whether as a result of new information, future events or otherwise. As always, we will allow for as much Q&A as possible today, though we ask that you limit yourselves to 1 question and 1 follow-up, please. As a reminder, we'll be hosting investor meetings with the sell side at OFC tomorrow and Wednesday. And we look forward to seeing many of you there.

本次電話會議中提及的與公司前景相關的假設，已包含在稍後發布的投資者簡報中，這些假設是前瞻性陳述的重要組成部分，我們鼓勵您仔細閱讀。此外，您還應結合我們最新提交的10-K文件以及即將提交的10-Q文件（須於3月9日前向美國證券交易委員會提交，我們預計將按時提交）中詳述的風險因素來解讀我們的前瞻性陳述。 Ciena不承擔因新資訊、未來事件或其他原因而更新本次電話會議中所討論資訊的義務。像往常一樣，我們今天將盡可能安排問答環節，但請您盡量將提問限制在一個問題和一個後續問題之內。提醒各位，我們將於明天和週三在OFC與賣方投資者舉行會議，期待與您相見。

With that, I'll turn the call over to Gary.

接下來，我將把電話交給加里。

Thanks, Gregg, and good morning, everyone. Today, we reported outstanding fiscal first quarter results including higher-than-expected quarterly revenue of $1.06 billion and adjusted gross margin of 43.7%. And in fact, Q1 was our largest revenue quarter ever, up 25% year-over-year. We also reported very strong profitability metrics, with quarterly adjusted operating margin of 12.6% and an adjusted EPS of $0.64. These results are a strong demonstration of our market leadership and continued demand for our market-leading technology across our complete portfolio. While supply chain has not completely recovered, and there is still some volatility in component deliveries, we are encouraged by the component availability in Q1 and our related strong shipment performance. This is both, I think, a proof point of our mitigation efforts and a positive indicator of our expectation for continued gradual improvements in the supply environment as we move through the year.

謝謝格雷格，大家早安。今天，我們公佈了出色的第一財季業績，包括高於預期的季度營收10.6億美元和調整後毛利率43.7%。事實上，第一財季是我們有史以來營收最高的季度，年增25%。我們也公佈了非常強勁的獲利指標，季度調整後營業利潤率為12.6%，調整後每股收益為0.64美元。這些業績有力地證明了我們的市場領導地位，以及市場對我們全線領先技術的持續需求。雖然供應鏈尚未完全恢復，零件交付仍存在一些波動，但我們對第一財季的零件供應情況以及由此帶來的強勁出貨量感到鼓舞。我認為，這既證明了我們採取的緩解措施的有效性，也預示著我們預期隨著年內供應環境將持續逐步改善。

We are very pleased with this progress as we continue to work hard to fulfill our customers' network capacity needs. With this strong momentum, we remain confident in our ability to grow faster than the market in both, the short and long term and of course, take market share. This confidence is underpinned by 3 fundamental beliefs. First, the positive overall demand environment and the strength of our customer relationships. Second, the market-leading strength of our portfolio to best service customer demand. And lastly, the visibility, particularly provided by our backlog. And with respect to demand, we remain positive about the fundamental drivers, including 5G, cloud, AI and automation and continue to believe that they are very durable over the long term. Indeed, these drivers require network operators to increase capacity, reduce latency and optimize power consumption while also intelligently converging technologies.

我們對所取得的進展感到非常滿意，我們將繼續努力滿足客戶的網路容量需求。憑藉這股強勁勢頭，我們有信心在短期和長期內實現高於市場平均水平的成長，並最終贏得市場份額。這種信心源自於三大基本信念。首先，整體市場需求環境良好，且我們與客戶關係穩固。其次，我們擁有市場領先的產品組合，能夠更好地滿足客戶需求。最後，我們擁有清晰的業務可見性，尤其是我們充足的訂單儲備。關於需求，我們對包括5G、雲端運算、人工智慧和自動化在內的基本驅動因素保持樂觀，並堅信這些因素具有長期的可持續性。事實上，這些驅動因素要求網路營運商在提升容量、降低延遲、優化能耗的同時，智慧地融合各種技術。

These are critical elements across the core metro and increasingly edge network segments. And our customers know that they must continue investing in key parts of their networks to address these areas of their business in order to remain competitive. And there are clear signs, including our Q1 order book that point to be happening. Service these demand dynamics, we continue to leverage the strength of our business model and our investment capacity to remain at the forefront of innovation across our portfolio. And our leading technology and strategic focus on addressable market expansions are closely aligned with our customers' investment priorities. And in fact, you probably saw, we just announced the sixth generation of our WaveLogic technology, which will once again set a new standard in coherent optics, where we have led the market for generations of this technology.

這些要素對於核心城域網路以及日益重要的邊緣網路都至關重要。我們的客戶深知，為了保持競爭力，他們必須持續投資於網路的關鍵部分，以滿足業務發展的需求。種種跡象表明，包括我們第一季的訂單量在內，這種情況正在發生。為了滿足這些需求，我們將繼續利用自身強大的商業模式和投資能力，在整個產品組合中保持創新領先地位。我們領先的技術和對目標市場拓展的策略重點與客戶的投資重點高度契合。事實上，您可能已經注意到，我們剛剛發布了第六代WaveLogic技術，這項技術將再次樹立相干光通訊領域的新標竿。我們在該技術領域已引領市場數代之久。

WaveLogic 6 will be the first to support up to 1.6 terabits single-carrier wavelengths, 800 gig across the longest links and footprint optimized 800-gig pluggables that yet again, will have the lowest energy consumption. Our newest generation modem technology will be supported across a range of our optical and routing and switching platforms and will also be made available for use in third-party solutions. These breakthrough innovations in WaveLogic 6 are made possible through our unique expertise in coherent DSP and high-bandwidth electro optics, leveraging state-of-the-art 3-nanometer silicon technology. And in metro and edge, we continue to invest in market expansion and further solidify our role as the disruptive challenger in this space with a very compelling value proposition. These investments are positioning us to both, pursue new opportunities and leverage our position with current customers to address use cases deeper in the network.

WaveLogic 6 將率先支援高達 1.6 太比特的單載波波長、最長鏈路上的 800 Gbps 傳輸速率，以及針對特定尺寸優化的 800 Gbps 可插拔模組，並且再次實現了最低的能耗。我們最新一代的數據機技術將支援我們一系列光纖、路由和交換平台，並可供第三方解決方案使用。 WaveLogic 6 的這些突破性創新得益於我們在相干 DSP 和高頻寬光電技術方面的獨特專長，以及對最先進的 3 奈米矽技術的運用。在城域網路和邊緣運算領域，我們持續投資市場拓展，並憑藉著極具吸引力的價值主張，進一步鞏固我們在該領域的顛覆性挑戰者地位。這些投資使我們能夠抓住新的機遇，並利用我們與現有客戶的合作關係，深入網路內部，滿足各種應用場景的需求。

And since we last spoke to you in December, we closed the acquisition of Tibit Communications, which further strengthens our solution in broadband access. Benefiting now from our vertical integration and a modern open architectural approach, we believe we are very well positioned to attack this rapidly growing market that is the focus of private and public investment across multiple regions. These portfolio investments will be supported by similar efforts on software and services designed to enable customers to realize additional benefits of network automation, and execute on their network transformation strategies.

自去年12月我們上次與您溝通以來，我們完成了對Tibit Communications的收購，這進一步增強了我們在寬頻存取領域的解決方案。憑藉我們垂直整合的優勢和現代化的開放式架構，我們相信我們已做好充分準備，進入這個快速成長的市場。該市場是多個地區公私投資的重點。我們將透過類似的軟體和服務開發工作來支援這些投資組合，旨在幫助客戶實現網路自動化的更多效益，並有效執行其網路轉型策略。

And lastly, let me pick up on this point of we have a very strong visibility given our backlog. As a reminder, going into 2020, we had accumulated a multitude of new design wins and WaveLogic 5 Extreme was only just beginning initial commercial deployments at that time. Now given the dynamics of COVID and supply chain conditions, those wins only started to translate into orders during the last several quarters. As a result of these wins and industry dynamics during this period, our backlog grew from $1.2 billion at the end of fiscal 2020 to $4.2 billion as we entered fiscal 2023. With that, it is clear that in recent periods, our backlog has far exceeded historical levels.

最後，我想強調我們目前積壓訂單的良好前景。回顧一下，在2020年初，我們獲得了大量新的設計訂單，而WaveLogic 5 Extreme當時也才剛開始初步的商業部署。然而，由於新冠疫情和供應鏈狀況的影響，這些訂單直到最近幾季才開始轉化為實際訂單。正是由於這些訂單以及這段時期的產業動態，我們的積壓訂單從2020財年末的12億美元成長到2023財年初的42億美元。由此可見，在近期，我們的積壓訂單量已遠超過歷史水準。

In Q1, our backlog came down slightly, because we significantly outperformed our revenue expectations. And of course, this is good news on a variety of fronts. First and most importantly, it means that we are delivering more product to our customers. Second, it's an indicator that the supply chain challenges are improving. And lastly, our market share gains are becoming evident as we convert this backlog to revenue. And while we expect ebbs and flows with orders given the supply chain dynamics, as we move through '23, orders for the year are off to a pretty good start. And even with these expected fluctuations, we expect to finish the year with backlog that is higher than our historical levels, albeit down from the extraordinary level we had at the beginning of the year.

第一季度，由於營收大幅超出預期，我們的積壓訂單略有下降。這無疑是多方面的利多消息。首先，也是最重要的一點，這意味著我們正在向客戶交付更多產品。其次，這顯示供應鏈挑戰正在改善。最後，隨著我們將積壓訂單轉化為營收，我們的市佔率成長也日益顯著。鑑於供應鏈的動態變化，我們預計訂單量會有波動，但進入2023年，今年的訂單開局良好。即使存在這些預期中的波動，我們預計年底的積壓訂單量仍將高於歷史水平，儘管低於年初的驚人水平。

Moving to additional highlights from the quarter that I think speak to our efforts to meet customer demand. In optical, WaveLogic 5 Extreme continues to be the world's most widely deployed 800 gig coherent technology, including 13 new customers in Q1, bringing our total customer count to 214. And Q1 was our biggest modem shipment quarter ever overall, including for WaveLogic 5e, for which we've now surpassed 60,000 modems shipped to date. It was also, of course, our strongest WaveLogic 5e modem production quarter ever as well.

接下來我想談談本季其他一些亮點，這些亮點體現了我們為滿足客戶需求所做的努力。在光纖領域，WaveLogic 5 Extreme 仍然是全球應用最廣泛的 800G 相干傳輸技術，第一季新增 13 家客戶，使我們的客戶總數達到 214 家。第一季是我們數據機出貨量最高的季度，包括 WaveLogic 5e，其出貨量迄今已超過 6 萬台。當然，這也是我們 WaveLogic 5e 數據機產量最高的季度。

In Routing and Switching, with a focus on next-gen metro and edge, we continue to press down our efforts and to expand our addressable market and gain market share. Overall, quarterly revenue for our Routing and Switching segment increased 39% year-over-year. And Q1 was, of course, also a record shipment quarter for these platforms. And within this portfolio, we secured new wins in Q1 for our broadband access solution, which includes the recently acquired technology from both, the new networks and Tibit Communications.

在路由和交換領域，我們專注於下一代城域網路和邊緣運算，持續加大投入，拓展目標市場並提升市場份額。整體而言，路由和交換業務的季度營收年增39%。當然，第一季也是這些平台出貨量創紀錄的季度。此外，我們在第一季也成功拿下寬頻接取解決方案的新客戶，該方案融合了近期從New Networks和Tibit Communications收購的技術。

Shifting to customer segments and regions in the quarter, non-telco revenue was 40% of total sales in Q1. This reflects a strong performance with web-scale, which included a 10% customer in the quarter. Direct web-scale was 24% of total revenue in the quarter and increased 47% year-over-year. We remain very positive about the year with this group of customers. In fact, in FY '23, we expect record revenue in web-scale and growth well above the corporate average.

本季度，從客戶細分和區域來看，非電信產業收入佔總銷售額的40%。這主要得益於網路規模業務的強勁表現，其中一家客戶在本季貢獻了10%的營收。直接網路規模業務的營收佔本季總營收的24%，較去年同期成長47%。我們對該類客戶的未來發展前景依然非常​​樂觀。事實上，我們預期在2023財年，網路規模業務的營收將創歷史新高，成長速度也將遠超過企業平均。

As we continue to focus on driving growth outside the U.S., Q1 revenue in the APAC region was up 41% year-over-year. This was largely driven by revenue growth in India, which was up 150% year-over-year in Q1 to $64 million, reflecting the strong demand environment in that market. And finally, we are placing an intense focus on customer experience. Specifically, the combination of our investment in inventory over the last 12 months and a ramp-up of our service team's readiness to deploy for our customers as fast as possible as we ship product.

我們持續專注於推動美國以外市場的成長，亞太地區第一季營收年增41%。這主要得益於印度市場的強勁成長，其營收年增150%至6,400萬美元，反映了該市場強勁的需求。最後，我們高度重視客戶體驗。具體而言，過去12個月我們加大了庫存投入，並提升了服務團隊的反應速度，以便在產品發貨後儘快為客戶提供支援。

In summary, we have great momentum in the market today, supported by robust fundamental demand drivers, a market-leading set of technologies and platforms and strong visibility with our backlog. And with that, we are confident that we will deliver outsized year-over-year revenue growth in FY '23 and that we remain on track to achieve the 3-year revenue CAGR outlook we previously provided.

總而言之，目前我們在市場上的發展勢頭強勁，這得益於強勁的基本面需求驅動、市場領先的技術和平台組合以及清晰的訂單儲備。因此，我們有信心在2023財年實現超額的同比增長，並有望實現先前給出的三年複合年增長率預期。

With that, I will now turn over to Jim to speak more on those items as well as to provide additional detail on the Q1 financial results. Jim?

接下來，我將把麥克風交給吉姆，讓他進一步闡述這些內容，並提供第一季財務表現的更多細節。吉姆？

Thanks, Gary. Good morning, everyone, and an especially good very early morning to those on the West Coast at OFC. As Gary mentioned, we had a tremendous performance in Q1 that demonstrates our strong position as the market leader. Total revenue was $1.06 billion, higher than expected. We shipped more product than expected due to improvements in vendor component deliveries, particularly toward the end of the quarter. Adjusted gross margin was strong at 43.7%, reflecting a favorable product mix and specifically, a high volume of modems. Modems carry higher gross margins than average, and they made up a significant percentage of the late quarter shipments. Q1 adjusted operating expense was $329 million, reflecting our investments in TAM expansion, and it included OpEx from the acquisitions of the new and Tibit.

謝謝 Gary。大家早安，尤其要感謝 OFC 西海岸的各位，祝你們早安。正如 Gary 所說，我們第一季的業績非常出色，充分展現了我們作為市場領導者的強大地位。總收入達 10.6 億美元，高於預期。由於供應商組件交付的改善，尤其是在季度末，我們的產品出貨量超出預期。調整後的毛利率高達 43.7%，這得益於有利的產品組合，特別是調變解調器的高銷售量。調製解調器的毛利率高於平均水平，並且在本季末的出貨量中佔比很高。第一季調整後的營運支出為 3.29 億美元，反映了我們對目標市場擴張的投資，其中包括收購 New 和 Tibit 產生的營運支出。

With respect to profitability measures, in Q1, we delivered strong results, including adjusted operating margin of 12.6%, adjusted net income of $95.6 million and adjusted EPS of $0.64 per share. In addition, we used cash from operations in the quarter, primarily related to increases in inventory and accounts receivable. Our inventory levels reflect our continued investment in components and other raw materials to manage the impact of supply chain volatility on our customers. As supply conditions gradually improve, we expect inventory levels to come down as we move through fiscal 2023 but to remain elevated relative to historical levels. We do believe that inventory will be lower in Q4 of this year than in Q4 of 2022.

就獲利指標而言，我們在第一季取得了強勁的業績，包括調整後營業利潤率12.6%、調整後淨利潤9560萬美元以及調整後每股收益0.64美元。此外，本季我們動用了經營活動產生的現金流，主要用於增加庫存和應收帳款。我們的庫存水準反映了我們持續投資於零件和其他原材料，以應對供應鏈波動對客戶的影響。隨著供應狀況逐步改善，我們預期庫存水準將在2023財年逐步下降，但仍將高於歷史水準。我們相信，今年第四季的庫存將低於2022年第四季。

And finally, adjusted EBITDA in Q1 was $155.1 million. Benefiting from our successful term loan transaction in Q1, we ended the quarter with approximately $1.2 billion in cash and investments. And just as a reminder, during Q1, we acquired the new and Tibit for an aggregate price of approximately $292 million. With our strong balance sheet, we intend to return capital to stockholders, including our continued expectation for the repurchase of approximately $250 million in shares during this fiscal year.

最後，第一季調整後 EBITDA 為 1.551 億美元。由於第一季成功的定期貸款交易，我們季末持有約 12 億美元的現金和投資。此外，我們提醒大家，第一季我們以約 2.92 億美元的總價收購了 New and Tibit。憑藉我們穩健的資產負債表，我們計劃向股東返還資本，包括繼續預期在本財年回購約 2.5 億美元的股票。

Turning now to guidance. I want to be clear that the updated outlook I'm about to provide reflects the same set of key assumptions that we discussed last quarter and which are also in our earnings presentation, including those related to supply chain conditions. This latter point is particularly important in a still uncertain supply chain environment. We believe that gradually improving supply conditions of the type we saw in Q1 will begin to allow for greater deployments of our accumulated design wins as well as for new business from customers pursuing best-in-class technology across our portfolio. Accordingly, in Q2, we expect to deliver revenue in a range of $1.035 billion to $1.115 billion. Adjusted gross margin in the low 40% range and adjusted operating expense in Q2 of roughly $335 million.

現在談談業績展望。我想明確指出，我即將提供的最新展望與我們上季討論的關鍵假設相同，這些假設也包含在我們的獲利報告中，包括與供應鏈狀況相關的假設。在目前供應鏈環境仍不明朗的情況下，後一點尤其重要。我們相信，隨著第一季供應鏈狀況的逐步改善，我們將繼續擴大已贏得的設計項目的部署，並吸引更多客戶在我們產品組合中尋求一流技術，從而拓展新業務。因此，我們預計第二季營收將在10.35億美元至11.15億美元之間。調整後毛利率預計在40%左右，調整後營運費用約3.35億美元。

With respect to the fiscal year, we expect to achieve strong share gains as already reflected in our significant revenue overperformance in Q1 and our expectations for Q2. Therefore, we now expect to achieve fiscal year '23 revenue growth in a range of 20% to 22%, up from 16% to 18%. For adjusted gross margin, we continue to believe that our gross margin for fiscal '23 will be in a range of 42% to 44%. This reflects our expectation for a greater proportion of line systems in our product mix over the next few quarters. And for adjusted operating expense, we expect to average approximately $335 million -- $330 million per quarter for fiscal year 2023. This reflects our intent to continue investing strategically in our future, primarily targeting opportunities for TAM expansion in next-gen metro and edge. This latter area is very rapidly growing, and we see potential to gain share with our best-in-class offerings.

就本財年而言，我們預計將實現強勁的市場份額成長，這已體現在我們第一季顯著超出預期的營收表現以及我們對第二季的預期。因此，我們現在預計2023財年營收成長率將達到20%至22%，高於先前預期的16%至18%。調整後毛利率方面，我們仍認為2023財年的毛利率將在42%至44%之間。這反映了我們預期未來幾季產品組合中線路系統佔比將有所提高。調整後營運費用方面，我們預計2023財年平均每季約為3.35億美元至3.3億美元。這體現了我們持續對未來進行策略性投資的意圖，主要目標是拓展下一代城域網路和邊緣運算領域的市場規模。邊緣運算領域正處於高速成長期，我們看到了憑藉一流產品和服務贏得市場份額的潛力。

It's clear from the quarterly results we reported today, as well as our outlook for Q2 and fiscal year 2023 that we are performing extremely well. We have never felt better about our position in our business. The combination of robust demand drivers are market-leading technologies and platforms and expanding addressable market and strong visibility with our sizable backlog gives us high confidence in market share gains over the next few years.

從我們今天公佈的季度業績以及對第二季度和2023財年的展望來看，我們的業績表現非常出色。我們對自身業務地位的信心從未如此高。強勁的需求驅動因素，包括市場領先的技術和平台、不斷擴大的潛在市場以及我們龐大的積壓訂單所帶來的清晰市場前景，都讓我們對未來幾年市場份額的成長充滿信心。

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

傑森，現在我們將接受賣方分析師的提問。

(Operator Instructions) Our first question comes from George Notter from Jefferies.

（操作說明）我們的第一個問題來自傑富瑞集團的喬治諾特。

I guess I wanted to ask a bit about backlog. You said it was down slightly. Could you just give us a precise number? I think you said it was $4.2 billion last quarter, but just was curious on the update. And then also wondering if you're seeing any cancellations on that backlog, any more detail you could give us there? And then just also product lead times. Obviously, lead times have been extended in a lot of areas of the business. I'm just curious what the update is there.

我想問一下關於積壓訂單的問題。您說積壓訂單略有下降，能否提供一個具體的數字？我記得您上個季度說過是42億美元，但我想了解最新的數據。另外，我還想問一下，您那邊是否有訂單取消的情況？能否提供更多細節？還有產品交付週期。顯然，許多業務領域的交付週期都延長了，我想了解這方面的最新情況。

Let me take that, George. We don't normally give sort of precise sort of backlog, but given the environment to it, I would say this, if we were to finish at the midpoint of our guide, then we would basically have replenished all of our backlog. So we ate through some of our backlog principally, because our revenue was $100 million over our expectation for the quarter. So we still have a incredibly healthy backlog, but we expect to come down during the year. We do not think this level of backlog is sustainable or frankly, desirable. Customers want equipment, they don't want it sitting on our backlog. And that really bleeds into the second part of the question on the sort of cancellation. We're not seeing any change in update to that. It's a very small and minor and just normal run-of-the-mill type cancellations. So we're very confident about the integrity of the backlog.

喬治，讓我來回答這個問題。我們通常不會給出非常精確的積壓訂單量，但考慮到目前的市場環境，我想說的是，如果我們能達到預期業績的中點，那麼我們基本上就能完成所有積壓訂單。我們之所以能消耗一部分積壓訂單，主要是因為我們本季的營收比預期高出1億美元。所以，我們目前的積壓訂單量仍然非常可觀，但我們預期年內會有所下降。我們認為目前的積壓訂單量既不可持續，坦白說，也不理想。客戶需要設備，他們不希望設備積壓在我們的訂單裡。這其實也引出了第二個問題，就是訂單取消的情況。我們目前沒有看到任何變化。取消的訂單數量非常少，屬於正常的常規取消。因此，我們對目前的積壓訂單量非常有信心。

What was the third question, George?

喬治，第三個問題是什麼？

I guess it was just about product lead times. I know they've been extended for some time now. I'm just wondering if you're able to make a dent on this.

我想應該只是產品交付週期的問題。我知道交付週期已經延長了一段時間。我只是想知道你們能否在這方面有所作為。

Yes, George, it's Scott, product lead times have improved as we've just shipped more products and have sort of built a bigger ship going forward. They will continue to improve throughout the year, although I don't think we will get them back to historical levels in this fiscal year. And I'm not sure what the new norm will be, but they will be significantly improved as we go throughout the year.

是的，喬治，我是史考特。隨著我們出貨量增加，產品交付週期有所改善，也意味著我們未來將擁有更強大的實力。交付週期將在今年持續改善，但我認為在本財年內無法恢復到歷史水準。我也不確定新的標準會是什麼，但隨著時間的推移，交付週期肯定會顯著改善。

Our next question comes from Tal Liani from Bank of America.

下一個問題來自美國銀行的塔爾·利亞尼。

I have a follow-up on the previous question, and I have another question on cloud. So the first one is, when I look at the results of all the companies in the space and I'm [general networking,] let's say, it's all the same, meaning very strong revenues, margins are going up because of higher revenues, but the backlog is coming down. And the question is -- and I'm asking on the other side. I mean, George asked you about the backlog, I'll ask about the environment. The question is, how much -- you sound very confident as well as [Cisco] sounded confident, how much of this strength is really a backlog flush and historical orders with the risk that this will end when the backlog going down to normal levels? And how much of it is basically a strong environment that really needs a strong network -- underlying network. So if you can talk about the environment, the orders, the kind of projects and customers, et cetera. So that's first question. And I'll ask both questions together because they are linked.

我還有一個關於上一個問題的後續問題，以及一個關於雲端運算的問題。第一個問題是，當我查看所有相關公司（我指的是通用網路）的業績時，假設它們都一樣，也就是說收入非常強勁，利潤率也因為收入成長而上升，但積壓訂單卻在減少。問題是──我是從另一個角度問的。我的意思是，喬治問了你關於積壓訂單的問題，那我問的是環境方面的問題。問題是，你和思科聽起來都很有信心，這種強勁的業績有多少是真正得益於積壓訂單的充裕和歷史訂單，而這種強勁勢頭可能會隨著積壓訂單回落到正常水平而結束？又有多少是真正依賴強大的底層網路的強大環境？所以，如果你能談談環境、訂單、項目類型和客戶等等，那就太好了。這是第一個問題。我會把這兩個問題放在一起問，因為它們是相關的。

The second question is about cloud. Another thing that we have seen with Arista, for example, is that cloud is strong. And for you, if you don't mind to repeat the numbers, but I think cloud was up 47%. And the question is how much risk is there in the concentration of maybe 1 big customer, 1 big quarter, with their budgets coming down, what's the risk here that cloud will slow down throughout the year?

第二個問題是關於雲端運算的。例如，我們從Arista的案例中看到，雲端運算業務表現強勁。如果不介意，能否再重複數據？我記得雲端運算業務成長了47%。問題是，如果雲端運算業務集中在一個大客戶、一個季度，而他們的預算又在下降，那麼雲端運算業務全年放緩的風險有多大？

Okay. Let me take the first part of those multiple questions, Tal. I would say, first of all, one has to step back from the environment that we're seeing, which is the sort of whipsaw around the whole COVID piece, then enormous pent-up demand, then supply chain issues, et cetera. So you're seeing a very turbulent set of dynamics over the last few -- couple of years, and we're still living through it this year. If you sort of look through that dynamic and when we get to some kind of new normal, let's sort of assume that's '24. Then I think you can look back on this and say that the consistent market demand has been strong, mid-single digits, which I think it is consistently and historically been. And I think all of the dynamics and signals that we see are consistent with that. The desire for bandwidth in all its various forms, closer to the end user consumer continues unabated. But that has typically translated into an optical market growth of the mid-single digits.

好的。 Tal，我先回答你提出的第一個問題。首先，我們必須跳脫目前所處的環境，也就是新冠疫情帶來的種種衝擊，以及龐大的潛在需求、供應鏈問題等等。過去幾年，市場動態非常動盪，而今年我們仍在經歷這一切。如果我們能透過這種動盪的局面，展望未來，假設到2024年，市場恢復到某種新的常態，那麼我們可以回顧過去，發現市場需求一直保持強勁，增長率維持在個位數中段，我認為這在歷史上一直如此。而且，我們看到的所有動態和訊號都與此相符。終端用戶對各種形式的頻寬的需求依然旺盛，但這通常只會轉化為光纖市場個位數中段的成長。

If you look at Ciena over that period, and again, similar to historical norms, we are a few percentage points above that. And if you look at our CAGR for the next 3 years, which we gave basically last quarter, it's in the 10% to 12% range. So clearly, we're going to be taking a lot of share, mainly because of the wins that we secured in '19 and '20 and '21 now coming into revenue. So I think, yes, we've got outsized revenue this year. There's no doubt about that, and that will obviously normalize at some point, but we will continue to grow faster than the market. And the overall demand, Tal, continues to be strong from that perspective.

如果你回顧一下Ciena這段時間的表現，你會發現，與歷史平均值類似，我們的成長率比平均高出幾個百分點。如果你看看我們上個季度公佈的未來三年複合年增長率（CAGR），它預計在10%到12%之間。顯然，我們將佔據很大的市場份額，這主要得益於我們在2019、2020和2021年贏得的訂單，這些訂單現在都轉化為了收入。所以我認為，是的，我們今年的收入確實非常可觀。這一點毋庸置疑，而且這種情況最終會趨於正常，但我們將繼續保持高於市場平均的成長速度。從這個角度來看，整體需求依然強勁。

Moving on to web-scale. Obviously, we have relationships with all of the major web scalers. It's not just 1 single 1 that we did have a 10% this quarter, but it's across the board. And we're going to be up significantly for the year, as I said, 47% year -- for the year. We expect growth this year to continue to be above our corporate average. So you can see it's pretty strong. And we're continuing to see good activity with these guys as well.

接下來談談網路規模化。顯然，我們與所有主要的網路規模化服務商都建立了合作關係。本季我們與其中一家實現了10%的成長，這並非個例，而是整體而言。正如我之前所說，我們今年的成長將非常顯著，達到47%。我們預計今年的成長將繼續高於公司平均水平。所以你可以看到，我們的成長勢頭非常強勁。而且，我們與這些服務商的合作也持續保持良好動能。

Just to add on to that a little bit, Tal. We've been through a period over the last 3 or 4 years with the web-scalers [of] tremendous growth across just about every metric in their businesses. And I think it's sort of natural that they are looking at their business in the wake of what's going on in the world, and we've seen a lot of noise out there in the market about what they're doing with their people and what they're doing with their CapEx. But if you look through all of that, underlying business remains strong. Their cloud businesses are strong. So I -- we don't see any impact on their demand. There's turbulence and pushouts and things like that, but we don't see any significant change in the fundamental nature of their business. They're growing.

塔爾，我再補充一點。在過去三、四年裡，網路規模化企業經歷了業務幾乎所有指標都大幅成長的時期。我認為，鑑於全球情勢的變化，他們審視自身業務是很自然的。我們也看到市場上有很多關於他們人員配置和資本支出的傳聞。但拋開這些，他們的核心業務依然強勁。他們的雲端業務也很穩健。所以，我們看不到他們的需求受到任何影響。雖然市場波動和業務拓展等因素在所難免，但我們看不到他們業務的根本性質有任何重大變化。他們仍在成長。

Our next question comes from Samik Chatterjee from JPMorgan.

我們的下一個問題來自摩根大通的薩米克·查特吉。

So I had a couple, and maybe just to start with one of the questions we're getting this morning. I think, Gregg, you mentioned -- sorry, Gary, you mentioned that overall, you would have replenished the backlog if you had hit the midpoint of the guide for 1Q. I think last quarter, you had said you building backlog with the assumption that you hit the midpoint. So I think one of the questions coming up is that even within the robust order number, were there pockets of weakness that sort of led to a modest sort of slightly below on the order numbers that you had expected? And I have a follow-up, please.

我有一些問題，先從今天早上收到的一個問題開始。格雷格，你之前提到過——抱歉，加里，你提到過，如果第一季業績達到預期目標的中點，你們就能補充積壓訂單。我記得上個季度你說過，你們是在假設達到中點目標的情況下建立積壓訂單的。所以，接下來的一個問題是，即使訂單數量強勁，是否存在某些環節的疲軟，導致實際訂單數量略低於預期？我還有一個後續問題。

I would not describe it as that. It's a very, very strong Q1 for us. If you think about it, that kind of number is very strong. And I would caution folks that I understand people are fixated on orders in the backlog. The backlog cannot and should not maintain the levels that it is. So the order flows, whilst they're good will not match shipments. We expect that during the year. So we expect very simply to end the quarter -- end the year with less backlog than we went into it. And that is a good result for our customers and a good result for us. So I think we actually had a very strong Q1 orders. But I would caution particularly on just taking order metrics on a quarterly basis right now. We're going to see some ebbs and flows during the year. There's no doubt about that. I mean, last year, we had 25% order growth last year. And if you look at the end of, I think it was Q3 in FY '22, if you look at the trailing 12 months, it was up 60%. That is not sustainable. And whilst it's wonderful, and it's a great demonstration of all the wins that we've had, we've got to take them to revenue in this next phase of the business. And we still believe we're going to have a very good '24 and go in with a strong backlog. But it's not going to be a linear line from an order point of view, that's for sure. Second part of your question, Samik.

我不會那樣描述。對我們來說，第一季業績非常強勁。仔細想想，這樣的數字確實非常亮眼。我也想提醒大家，我知道大家都很關注積壓訂單。但積壓訂單的數量不可能也不應該一直維持在目前的水準。所以，雖然訂單量目前不錯，但實際出貨量肯定跟不上。我們預計這種情況會持續到年底。因此，我們預計本季末——乃至全年末——的積壓訂單量都會比年初減少。這對我們的客戶和我們來說都是個好消息。所以我認為，我們第一季的訂單量確實非常強勁。但我特別提醒大家，現在不要只根據季度來判斷訂單指標。今年訂單量肯定會有起伏，這點毋庸置疑。去年，我們的訂單量增加了25%。如果你看看2022財年第三季末的數據，也就是過去12個月的累積數據，你會發現訂單量增加了60%。這不可持續。雖然這很棒，也充分展現了我們所取得的所有成就，但在業務的下一階段，我們必須將這些成就轉化為收入。我們仍然相信2024年會取得非常好的成績，並帶著強勁的訂單儲備進入新的一年。但可以肯定的是，從訂單的角度來看，這不會是一條直線。薩米克，關於你問題的第二部分。

Yes. I understand we are happy on small numbers here. But maybe switching gears here to WaveLogic 6, you just mentioned that the WaveLogic 5 orders had really started to sort of come in more in the recent quarters. So how do you think about the likelihood that with the release of WaveLogic 6, so quick in succession that customers start push out sort of their move to WaveLogic 5 and wait out till the WaveLogic 6 is in the market, just given that it's so sort of following on the heels of the WaveLogic 5 orders starting to pick up?

是的。我知道我們對目前的小規模訂單感到滿意。但或許我們可以換個話題聊聊WaveLogic 6，您剛才提到WaveLogic 5的訂單在最近幾季確實開始大幅成長。那麼，您認為WaveLogic 6的發布速度如此之快，會不會讓客戶推遲從WaveLogic 5升級到WaveLogic 6的計劃，轉而等待WaveLogic 6上市呢？畢竟，WaveLogic 5的訂單量已經開始回升。

Samik. So first of all, just a point of clarification. The WaveLogic 5 orders were a big part of that order growth that we saw in the last 18 months. So it's really a microcosm of the whole order dynamic that Gary said. So what we are doing now is we are in an accelerated way, converting those to revenue, and to converting them to shipments to our customers. So just I thought I heard you say something a little bit different, so just a point of clarification there. I think about WaveLogic 6, the timing as we said, is first half of '24. Obviously, we'll start to see design wins against that earlier than that, I suspect. But I will point out that it takes several cycles for next generation of technology to actually overtake the previous generation of technologies in terms of shipments or revenues. For example, this past quarter is the first quarter where WaveLogic 5 was the biggest number of units that we shipped across all of our generation of technology, and it's been available for a couple of years.

薩米克：首先，我想澄清一點。 WaveLogic 5 的訂單是我們過去 18 個月訂單成長的重要組成部分。正如加里所說，它實際上是整個訂單動態的縮影。我們現在正在加速將這些訂單轉化為收入，並最終交付給我們的客戶。我好像聽到你剛才說的有點不一樣，所以我想澄清一下。關於 WaveLogic 6，正如我們之前所說，預計在 2024 年上半年發布。當然，我估計我們會更早看到一些針對它的設計訂單。但我需要指出的是，下一代科技需要幾個週期才能在出貨量或收入方面真正超越上一代科技。例如，上個季度是我們所有一代技術中 WaveLogic 5 出貨量最高的第一個季度，而它已經上市好幾年了。

Our next question comes from Paul Silverstein from Cowen.

我們的下一個問題來自 Cowen 公司的 Paul Silverstein。

Gary, apologies for returning to the issue, but we seem to be a slow bunch. So I'll add to it. Relative to investor concerns about CapEx from both, carriers and web-scale, what do you -- from your comments, it doesn't sound like you're seeing any weakness. It sounds like the strength is pretty broad-based if I understood your comments correctly. What's driving that, what's the disconnect between these? And I'm mindful that CapEx trends in the individual companies' revenue are far from one of the same. What -- can you give us any incremental insight and what's driving your strength relative to the outlook for this year, those cutbacks that a lot of your customers have been talking about?

加里，很抱歉再次提起這個問題，但我們似乎反應比較慢。所以我再補充一點。關於投資人對營運商和網路規模營運商資本支出（CapEx）的擔憂，從你的評論來看，你似乎沒有看到任何疲軟的跡象。如果我理解正確的話，你認為整體表現相當強大。是什麼因素促成了這種強勁勢頭？這些因素之間又有什麼差異？我注意到，各家公司的收入對應的資本支出趨勢並不相同。你能否提供一些新的見解，以及是什麼因素促成了你目前強勁的業績，使其與今年的前景（許多客戶都在討論的削減開支）形成對比？

Well, I think first of all, you're dealing with a lot of pent-up demand, orders that have been placed because of extended lead times. And carriers -- I mean, let me be really clear, carriers and web-scale want the equipment. There's no doubt about that. They want the equipment. Now I would say, for the first time in the web-scale sort of area, we're seeing them manage to their budgets. So even though they want all the equipment, they can't take all of the equipment in the year. And we are seeing that, and that is built into our guide. Even with the massive uptick that we're seeing in web-scale, that is built into our guide. So they are scheduling stuff out into '24 which is great, because it gives us backlog and visibility there. We know they want the equipment to complete the networks that they're driving. So that actually is sort of a positive dynamic, but they are -- the web-scale, particularly are managing to their budgets. And we are seeing that, we have seen that for the last few quarters.

首先，我認為你們現在面臨的是大量積壓的需求，這些訂單都是因為交貨週期延長而產生的。而且，承運商——我的意思是，讓我把話說清楚，承運商和網路規模企業都需要這些設備。這點毋庸置疑。他們確實需要這些設備。現在我想說的是，在網路規模企業領域，我們第一次看到他們開始控制預算。所以，即使他們想要所有的設備，他們也無法在一年內全部購買。我們已經看到了這一點，並且已經將其納入了我們的預測指南。即使我們看到網路規模企業的需求大幅成長，這也已經納入了我們的預測指南。所以他們把訂單安排到了2024年，這很好，因為這讓我們能夠了解積壓訂單和訂單狀況。我們知道他們需要這些設備來完善他們正在運作的網路。所以這實際上是一個積極的趨勢，尤其是網路規模企業，他們正在控制預算。我們已經看到了這一點，在過去的幾個季度裡，我們一直都看到了這一點。

On the carrier side of things, again, they've got pent-up demand, and they are, as usual, managing to their budgets and CapEx. But I would say that the priority for them is actually in this space and is on capacity to build out their networks. Particularly when you think about it, the last 2 to 3 years, first of all, they did not during the sort of COVID period, they were operationally conservative, and really the growth in the market was pretty flat. Then they had pent-up demand, then we couldn't ship it to them in time.

就營運商方面而言，他們同樣面臨積壓的需求，並且像往常一樣，他們也在努力控制預算和資本支出。但我認為，他們的首要任務其實是提升網路容量。尤其考慮到過去兩三年，首先，在新冠疫情期間，他們的營運策略較為保守，市場成長也相當平緩。之後，他們面臨積壓的需求，而我們卻無法及時滿足他們的需求。

And so it is a priority for them right now to roll out these networks. So obviously, they're not immune to all of the economic uncertainty out there. But given the particular demand dynamics around capacity in their networks, we've got good visibility to that and not just in the backlog, but in the activity that we're seeing with them. So that's how I would characterize the 2 groups. We are not seeing any push out on the carrier side from a budget point of view. We're not seeing it.

因此，他們目前的首要任務是部署這些網路。顯然，他們也無法免於當前經濟不確定性的影響。但鑑於他們網路容量的特定需求動態，我們對此有清晰的了解，不僅體現在積壓訂單上，也體現在我們看到的他們的實際業務活動中。這就是我對這兩類業者的描述。從預算角度來看，我們沒有看到營運商方面有任何削減預算的跡象。我們沒有看到這種情況。

All right. As a follow-up, the numbers clearly indicate that ZR, at least at present, is not having an adverse impact. And I'm mindful that you guys -- I keep -- all (inaudible) indicate that you've got the lowest power solution in the market, which obviously is a critical factor. You've now announced WaveLogic 6 on 3 nanometer. I don't think anyone else has announced 3 nanometer, which presumably would -- I recognize it's not necessarily ZR, but presumably that will continue your trajectory in terms of power efficiency. But let me let you respond. Any update on where your activity is at on your participation, if any, relative to that opportunity?

好的。作為後續，數據清楚地表明，至少目前來看，ZR技術並沒有產生不利影響。而且我注意到你們——我一直——都（聽不清楚）表示你們擁有市場上功耗最低的解決方案，這顯然是一個關鍵因素。你們現在已經發布了採用3奈米製程的WaveLogic 6。我認為目前還沒有其他公司發布3奈米製程的產品，這應該──我知道它不一定是ZR技術，但想必會延續你們在能源效率方面的優勢。不過，還是請你們來回答一下。關於你們參與這個計畫的進展情況，如果有的話，有什麼最新消息嗎？

Paul, I don't think our perspective has changed much since the last time we chatted. I firmly believe we've got the best pluggable product in the marketplace, both from -- you mentioned power and -- but also [reach.] And there's starting to be some external references to validate that. We still think that market in terms of the ZR market for campus DCI is still very much in front of us. There's been some early movements. I don't think they've moved into the network as fast as people had expected. But as that sort of inventory position and those customers bleeds off, we think there will be opportunity in front of us.

保羅，我覺得我們上次聊天之後，觀點並沒有太大變化。我堅信我們擁有市場上最好的可插拔產品，無論是從你提到的功率，還是從覆蓋範圍來看都是如此。而且，也開始有一些外部資料印證了這一點。我們仍然認為，就校園資料中心互連（DCI）的零解析度（ZR）市場而言，我們面前依然充滿機會。雖然已經出現了一些初步進展，但我認為他們進入網路的速度並沒有人們預期的那麼快。不過，隨著現有庫存和客戶的流失，我們相信未來會有更多機會出現。

All right. Jim, can you just clarify something? Any meaningful contribution from Tibit [revenue] in the quarter?

好的。吉姆，你能澄清一下嗎？ Tibit這季度營收有顯著貢獻嗎？

No, it was not, Paul. They were a little bit later in the quarter, and there was no meaningful revenue contribution at this stage.

不，不是的，保羅。它們是在本季度後期推出的，而且在這個階段還沒有產生實質的收入貢獻。

Our next question comes from Tim Long from Barclays.

下一個問題來自巴克萊銀行的提姆朗。

Yes, 2, if I could, as well. First, I wanted to touch on Routing and Switching, which seem to reflect a little bit higher in the quarter. Can you talk a little bit about kind of growth in use cases or sales or what it takes to keep that business scaling? And then secondly, a little bit higher level, looking at kind of the service businesses as a whole continue to lag product. Most companies in the peer group have seemed to match revenue there. So could you talk a little bit about why we've seen service underperformance in a pretty weak gross margin accordingly this quarter?

是的，如果可以的話，還有第二個問題。首先，我想談談路由和交換業務，這部分業務在本季似乎表現略好。您能否談談用例或銷售額的成長情況，以及維持業務規模擴張所需的條件？其次，從更高的層面來看，服務業務整體上仍落後於產品業務。大多數同行公司在服務業務方面似乎已經實現了營收成長。您能否談談為什麼本季服務業務表現不佳，毛利率也相應較低？

The -- let me take the second 1 first, the Services piece. So it really has more to do with the project mix and timing of sort of product revenue delivery versus sort of [installation] projects. I don't think there's a sustainable difference in the performance of the services business relative to our equipment business here. It's really just timing and project based, particularly on the installation based services. And that has both, the revenue ratio that you pointed out but also has a margin implication, because we carry a bit of fixed cost on the services piece and the revenue timing is not -- is off a bit, and you see it as a bit of a headwind from a margin perspective in the short term. So that's the Services dynamic.

讓我先說說第二個問題，也就是服務業務。這實際上與專案組合以及產品收入交付和安裝專案之間的時間表有關。我認為服務業務相對於我們的設備業務，其業績並沒有持續的差異。這主要取決於時間和項目安排，尤其是安裝服務。正如您所指出的，這會影響收入比率，同時也會對利潤率產生影響，因為服務業務有一定的固定成本，而且收入交付時間也略有延遲，從短期來看，這會對利潤率造成一定影響。這就是服務業務的現況。

On the Routing and Switching piece, you're absolutely right. Good quarter in Routing and switching. There's been a few in a row, so we're pretty excited about the momentum there. In many of the use cases, we are challengers that are building, I'll say, to next-generation architectures. So we think that the future is still very much in front of us in terms of getting at that expanded TAM that we talked about. And just to remind you, the key use cases that we've been focused on include wireless transport; next-generation residential broadband with XGS-PON; enterprise edge in both, the physical and sort of virtual capability; and then a converged metro core, benefiting both, from our IP capabilities but also our optical strengths there. So we're pretty excited about being the challenger in that space and the continued opportunities in front of us.

關於路由和交換業務，您說得完全正確。路由和交換業務本季表現良好，而且已經連續幾季保持成長勢頭，我們對此感到非常振奮。在許多應用場景中，我們都是挑戰者，致力於建立下一代架構。因此，我們認為，在拓展我們先前提到的目標市場方面，未來依然充滿無限可能。再次提醒您，我們重點關注的應用場景包括：無線傳輸；基於 XGS-PON 的下一代住宅寬頻；企業邊緣運算（包括實體和虛擬能力）；以及融合的城域核心網，這得益於我們的 IP 能力和光纖技術優勢。因此，我們很高興能夠成為該領域的挑戰者，並期待未來持續的機會。

Our next question comes from Simon Leopold from Raymond James.

我們的下一個問題來自 Raymond James 公司的 Simon Leopold。

I'm going to ask sort of the 2 combined, because I think they're related, but I wanted to see if you could talk a little bit about your expectations for India. I picked up the comment from Gary on the quarter at $64 million. I think last year, you were about 2% of revenues. Just want to get a better sense of the sustainability and outlook for India. And the related question is, more broadly, your thoughts and updates on being able to displace Huawei, not just India but outside China, globally, how you see your position to win share from Huawei versus your competitors?

我打算把這兩個問題結合起來問，因為我覺得它們有關聯。我想先了解一下您對印度市場的預期。我注意到Gary提到上一季營收為6,400萬美元。我記得去年印度市場營收佔總營收的2%左右。我想更深入地了解印度市場的可持續性和前景。另外，還有一個相關的問題，更廣泛地說，您對能否取代華為——不僅是印度市場，而是中國以外的全球市場——有什麼想法和最新進展？您如何看待自己相對於競爭對手從華為手中奪取市場份額的情況？

Simon, let me take the India one. Yes, I think we're beginning to see what we sort of generally anticipated in the industry, which is a strong build-out in India. You saw that in our results. I would expect India to have a very -- not just a good year, but probably a good 3 years for us, quite frankly. There's a whole investment cycle there, driven primarily by sort of the 5G build-out. But just generally, the investment there is the fastest-growing internet market in the world, and we have #1 market share and are well positioned there. So we're very positive about India. It's going to be a strong cycle.

西蒙，我來說說印度的情況。是的，我認為我們開始看到業內普遍預期的情況，那就是印度市場正在強勁成長。你從我們的業績也看到了這一點。坦白說，我預計印度市場未來三年對我們來說都將非常有利，不僅僅是今年，而是未來三年。那裡正處於一個完整的投資週期，主要由5G建設推動。總的來說，印度是全球成長最快的網路市場，而我們擁有第一的市場份額，並且在那裡佔據了有利地位。所以我們對印度市場非常樂觀。這將是一個強勁的成長週期。

And Huawei -- and actually to pick up on Huawei in India and then broaden out the question that you had, Simon. A lot of those decisions have already been made. I think I would characterize India as moving very quickly, relative to other parts of the world on the displacement of Huawei. And we've certainly benefited from that. We've had wins that we're now rolling out, which is direct replacement. I think Europe is the other sort of market area, particularly where they are changing out Huawei. But that is a multiyear process in Europe. And I think we're winning our fair share of that in Europe. And that will continue over the next few years as they replace their infrastructure. Their initial focus was not building with them in the wireless space. The kind of transport stuff is they kind of get into it when they get to it. And they are beginning to get to it, and that will continue.

至於華為——實際上，我想就華為在印度的情況談談，然後進一步探討你剛才提出的問題，西蒙。很多決定已經做出。我認為，相對於世界其他地區，印度在華為的替代方案方面進展非常迅速。我們當然也從中受益。我們已經取得了一些成果，現在正在推廣直接替代方案。我認為歐洲是另一個市場區域，尤其是在他們正在替換華為的地方。但這在歐洲是一個多年過程。我認為我們在歐洲已經取得了相當大的成功。隨著他們更換基礎設施，這種情況將在未來幾年持續下去。他們最初的重點並不是在無線通訊領域與華為合作。至於傳輸領域的技術，他們會在適當的時候才涉足。他們已經開始著手處理這些技術，而且這種情況還會持續下去。

Other parts of the world are less sort of responsive generally speaking. You look at Africa, you look at Latin America, there's not as much movement to replace Huawei as you see in the geopolitical stuff in -- particularly in Europe and in certain other countries in Asia, too. So that's sort of holding course and speed, I would describe it like that. Simon.

世界其他地區的反應總體上比較遲緩。看看非洲，看看拉丁美洲，你會發現，在這些地區，更換華為的行動遠不如地緣政治因素那麼強烈——尤其是在歐洲以及亞洲某些國家。所以，我只能說，這些地區的行動速度和方向都比較穩定。西蒙。

I would add that Huawei has a pretty significant market share in the [pond] area. And that's one of the reasons why it's interesting to us, because we believe that they will have the same resistance in the pond area as they're having in the core of the networks.

我想補充一點，華為在[網路池]領域擁有相當大的市場份額。這也是我們對此感興趣的原因之一，因為我們認為他們在網路池領域會遇到與在核心網路領域相同的阻力。

Just to clarify the India comments. I think the prior peak, I think 2018 was about 9% of revenue. So a smaller revenue base. Just wondering, is this business likely to be material enough to not maybe consistently, but at least get close to 10% of revenue? Or is this sort of $64 million-ish a sustainable level? How do we think about that?

關於印度市場，我想澄清一下。我認為之前的峰值，大概是2018年，佔總營收的9%左右。所以營收基數較小。我想知道，這項業務是否有可能發展到足夠重要的程度，即使不能持續，至少也能接近總營收的10%？或者說，目前6400萬美元左右的水平是否可持續？我們該如何看待這個問題？

I think it's possible to grow in absolute percentage terms as a part of our revenue. Now everything else is growing as well and you look at sort of the uptick in switching and routing. And well, you look at the uptick, particularly in web scale, et cetera. So would it touch 10% again? That's probably a little high, but it can certainly be a major contributor to us. There's no doubt about that.

我認為，就我們總收入而言，這部分業務的絕對百分比成長是有可能的。現在其他業務也在成長，例如交換和路由業務的成長，以及網路規模等業務的成長。那麼，這部分業務能否再次達到10%呢？這個數字可能有點高，但它無疑會成為我們收入的重要貢獻者。這點毋庸置疑。

The next question comes from Meta Marshall from Morgan Stanley.

下一個問題來自摩根士丹利的梅塔·馬歇爾。

Great. A couple of questions for me. Just maybe starting on gross margins. Just as you think about the year and supply chain, seemingly releasing a little bit sooner than expected, understanding you're leaving kind of gross margins about the same for the year. But just is there anything that we should think of differently as more new deployments, less supply chain overhead, just anything they consider there? And then second, just given the topical nature of it right now, just wondering how you guys see the AI opportunity for DCI and whether it's relatively small, because it's mostly in data center traffic or whether you think that, that could be kind of an additional growth driver for you guys.

好的。我有幾個問題。先從毛利率說起。考慮到今年的營運和供應鏈情況，產品發布似乎比預期提前了一些，預計全年毛利率與去年基本持平。但是，鑑於新部署增加、供應鏈成本降低等等因素，我們是否應該考慮一些不同的因素？其次，鑑於目前的熱門話題，我想了解你們如何看待人工智慧在資料中心基礎設施（DCI）領域的應用前景，以及它是否相對較小，因為主要集中在資料中心流量方面，或者你們認為它能否成為你們的另一個成長點？

Thank you, Meta. Jim, why don't you take the first part of that, (inaudible) the gross margin question?

謝謝你，Meta。 Jim，你先回答第一部分，（聽不清楚）毛利率問題吧？

Well, thanks, Gary. As we've always said, Meta, the most important element of our gross margin historically and for the future is mix. And we have won a lot of deployments and new projects with customers all over the world, including the web scalers, which calls for our new reconfigurable line system. We expect that this year, we will deliver a much higher proportion of what we call RLS, reconfigurable line system, to a bunch of customers and those deployments will have a dilutive effect on our gross margin. It hasn't happened to a great extent so far, but it will happen. And so we think it's going to impact our gross margin to the downside over the next couple of quarters. On the other side, we do think that exception costs which we said last year cost us probably 300 or 400 basis points to our gross margin will begin to come down. And these are the costs that we pay to brokers for components on the broker market as well as higher logistics costs. So it's the combination of a mix shift and these exception costs, which is influencing our margin right now. We did say in Q1, we had a higher percentage of modems, which are higher than average gross margin. We do think that, that percentage of modems will come down a bit as we go through the year and start to deliver RLS. Now for the future, we think that all of these things will tend to average themselves out, and we do think over the next few years, we'll get back to the mid-40s gross margin that we enjoyed back pre-COVID. Gary on AI?

謝謝，Gary。正如我們一直強調的，Meta，無論過去或將來，影響我們毛利率的最重要因素是產品組合。我們已經贏得了全球眾多客戶的部署項目和新項目，包括需要使用我們新型可重構生產線系統的網路擴展器。我們預計今年將向更多客戶交付更高比例的可重構生產線系統（RLS），這些部署將對我們的毛利率產生稀釋效應。目前這種效應還不明顯，但肯定會發生。因此，我們認為未來幾季毛利率將受到一定程度的下調。另一方面，我們認為去年導致毛利率下降300到400個基點的異常成本將會開始下降。這些異常成本包括我們向經紀商支付的零件費用以及更高的物流成本。所以，目前影響我們利潤率的是產品組合變動和這些特殊成本的綜合影響。我們之前提到過，第一季調變解調器的佔比較高，而調變解調器的毛利率通常高於平均值。我們認為，隨著年內業務的推進和RLS產品的交付，數據機的比例會略有下降。展望未來，我們認為所有這些因素最終會趨於平衡，我們預計未來幾年內，我們的毛利率將恢復到疫情前的40%左右。 Gary對人工智慧有什麼看法？

Yes, Meta, on your AI question, you're right, the community of interest right now is largely in the back end of the data center. But as you look at sort of those data center architecture is becoming more distributed due to the requirement of having to get more and more power to service the applications and you look at the traffic that AI is going to generate, that's going to have a bleeder effect on the [WAN] side traffic which is a good thing for those of us that are in the bandwidth business, and it will be both, in the web-scale direct networks as well as the service providers that service those web-scales.

是的，Meta，關於你提出的AI問題，你說得對，目前大家關注的焦點主要集中在資料中心的後端。但隨著資料中心架構的不斷擴展，為了滿足應用的需求，資料中心架構也變得越來越分散。 AI將會產生龐大的流量，這將對廣域網路（WAN）流量產生外溢效應，這對我們這些從事頻寬業務的人來說是件好事。這種效應不僅體現在網路規模的直接網路中，也體現在為這些網路規模提供服務的服務供應商身上。

The second thing I'd say, there's a lot of interesting dynamics going on in the architectures as people look forward into the future of this AI world inside the data center. And those architectures are starting to yield conversations around where does the coherent technology play [in] those architectures of the future. And you would have saw on our WaveLogic 6 announcement, starting to talk about industry has kind of phrased coherent light and the capability being in that generation of technology for us to take advantage and participate in those architectures. So that's a new, [new] space for us. So not necessarily in a timeline of our of our 3-year revenue guidance. But just beyond that horizon, we start to see those opportunities.

第二點我想說的是，隨著人們展望資料中心人工智慧的未來，架構領域正在發生許多有趣的變化。這些架構引發了關於相干技術在未來架構中扮演何種角色的討論。正如我們在 WaveLogic 6 發表會上所提到的，業界開始討論相干光技術，而這一代技術具備讓我們利用並參與這些架構中的能力。這對我們來說是一個全新的領域。雖然這不一定在我們三年營收預期的時間表之內，但展望未來，我們已經開始看到這些機會。

The next question comes from David Vogt from UBS.

下一個問題來自瑞銀集團的大衛‧沃格特。

Great. And I apologize if I'm going to belabor the point about backlog and orders. And so maybe, Gary, just for the comments on the call. It certainly sounds like based on the backlog draw that maybe book-to-bill was less than 0.9 in the quarter. Is that correct? And if we extrapolate that trend going forward for the full year, does that mean backlog comes down in the mid-teens based on sort of your expectations?

好的。如果我一再強調積壓訂單和訂單的問題，請見諒。 Gary，關於電話會議上的評論，根據積壓訂單的減少情況來看，本季訂單出貨比可能低於0.9，對嗎？如果我們把這個趨勢推算到全年，根據您的預期，積壓訂單是否會下降到十幾個百分點？

And then maybe if I roll that forward, is my second question into the 3-year model. Can you kind of square your comments about share gains in optical, if the optical industry is growing sort of mid-single digits? Because if I just take the midpoint of your guide, I would assume that in the back half of your 3-year plan, '24 and '25, Ciena revenue would only be growing around 6%. So I just would love to get some clarity on that.

那麼，如果我把這個預測往前推算，我的第二個問題是關於三年模型的。如果光學產業的成長率只有個位數中段，您能否解釋一下您關於光學領域市場佔有率成長的說法？因為如果我只取您預測的中點，我會認為在您三年計畫的後半段，也就是2024年和2025年，Ciena的營收成長率只有6%左右。所以我很想弄清楚這一點。

Okay. Sure, David. First of all, on the backlog, no, that isn't the right assumption. It was more than 0.9 for Q1, it was about that. Backlog for the year end, as we've said, I think everybody needs to get their head around the fact that we're not going to have 25% order growth year-on-year and the specific dynamics that have built up to that. And we expect to go into '24 with a bigger backlog than we would normally take into any fiscal year. So that backlog is still going to be very strong. The focus right now is to ship the backlog that we have and to reduce our lead times. If you look at the -- we gave a 3-year guide, a CAGR over that. We only gave it last quarter. So we're 36 months out into that. And I don't know as many companies that give that specificity. So we're very confident around a 10% to 12% growth in that CAGR.

好的，大衛。首先，關於積壓訂單，不，那不是正確的假設。第一季的積壓訂單超過0.9，差不多就是這個數字。至於年底的積壓訂單，正如我們之前所說，我認為大家都需要明白，我們不可能實現25%的同比增長，以及導致這一增長的具體因素。我們預計2024年的積壓訂單量將高於往年同期水準。所以積壓訂單仍然會非常強勁。目前的重點是交付現有積壓訂單並縮短交貨週期。我們給了一個三年期的複合年增長率（CAGR）指引，這個指引是上個季度才發布的。所以現在距離目標還有36個月。據我所知，很少有公司會給出如此具體的預測。因此，我們非常有信心達到10%到12%的複合年增長率。

Obviously, we're having an outsized year this year as we shipped the backlog. But if you look through all of that and the dynamics around various quarters and even various years, that's very strong, 10% to 12% in a market that's growing at about 5%. And that has typically been what Ciena has done for the last decade or so. And given the leading technology that we have, given the investment profile and scale of the customers that we have, that, we think, is a very, very strong performance. And so I think -- I don't know many companies of our size in our space that are talking about a midpoint of the range of 21% for the year.

顯然，今年我們的業績異常強勁，因為我們完成了積壓訂單的交付。但如果你縱觀所有數據，並結合各個季度甚至不同年份的業績動態來看，你會發現，在市場整體成長約 5% 的情況下，我們實現了 10% 到 12% 的成長率，這已經非常出色了。而這正是 Ciena 在過去十年左右的時間裡通常取得的業績。考慮到我們擁有的領先技術、投資規模以及客戶數量，我們認為這是一個非常非常強勁的業績。因此，我認為——就我們這個領域而言，我所知的同等規模的公司中，很少有公司能達到 21% 的年增長率中位數。

And just to be clear, our future has not changed. We still feel great about our position in the market and our ability to grow. We did give a range, David. And so to jump quickly to a mathematical equation, there is probably not the right idea in this time of turbulence and change. We feel great about our ability to grow faster than market.

需要澄清的是，我們的未來並沒有改變。我們依然對自身的市場地位和成長能力充滿信心。大衛，我們確實給了一個範圍。因此，在當前動盪變革的時期，貿然用數學公式來衡量可能並不明智。我們對自身的成長速度超過市場平均充滿信心。

Next question comes from Amit Daryanani from Evercore ISI.

下一個問題來自 Evercore ISI 的 Amit Daryanani。

I guess, Gary, maybe towards end of what you were talking about on the backlog dynamic, is that the way to think about where do you think your backlog exits this year? And I think historically, you've talked about if memory serves me a backlog number in a normalized range should be in the $750 million to maybe $1 billion range. How long does it take you to get to that normalized backlog? Is it a '24 process or much beyond that as well?

我想，Gary，也許在你剛才談到積壓訂單動態的時候，我們可以這樣理解今年的積壓訂單最終會達到什麼水準？我記得你之前說過，正常情況下，積壓訂單的金額應該在7.5億美元到10億美元之間。你們需要多長時間才能達到這個正常水平？是2024年就能完成，還是要花更久？

Amit, the honest answer to that is I honestly don't know what the new normal is going to look like. And I think the dynamics of this are largely driven, resulting not necessarily by demand. Demand has been very consistent and is very solid. It's by the ability of lead times to meet that demand. And so lead times in this space, even in very large infrastructure projects, were 10 to 12 weeks. I'm not sure they will return to that level for that kind of product. For the access and the edge and the rest of it, absolutely, 2 weeks or whatever the dynamics should be around that. But I'm not sure of what the new normal will look like for that and when that new normal absolutely kicks in, because you've still got volatility around the supply chain. It's getting better, there's no doubt about it, that's great.

阿米特，說實話，我也不知道新的常態會是什麼樣子。我認為這種變化很大程度上並非由需求驅動，而是由其他因素決定。需求一直非常穩定，也很強勁。關鍵在於交貨週期能否滿足需求。因此，即使是大型基礎設施項目，交貨週期也需要 10 到 12 週。我不確定這類產品的交貨週期是否還能恢復到先前的水準。至於接入、邊緣運算以及其他方面，交貨週期肯定可以縮短到兩週，或根據實際情況調整。但我也不確定這些領域的「新常態」會是什麼樣子，也不知道何時才能真正實現，因為供應鏈仍然存在波動。當然，情況正在好轉，這一點毋庸置疑，這很好。

So it's very difficult to predict exactly when we'll get back to some kind of new normal and indeed, even, Amit, what that new normal might look like. But it will be better lead times than we're seeing right now. There's no doubt about it. And that will reflect in carrying a lower backlog into the business. And that's the same for sort of everybody in this space. It's a little bit different for us in that we had enormous amounts of backlog because of the new wins that we had in the sort of '19 to '21 timeframe that have now translated into orders and backlog. So that's what gives us fantastic visibility over the next 12 months or so.

所以，我們很難準確預測何時才能恢復到某種新的常態，甚至連阿米特，這種新的常態究竟會是什麼樣子，也很難說清楚。但可以肯定的是，交貨週期肯定會比現在短得多。這點毋庸置疑。而這將反映在業務積壓訂單的減少上。這種情況在這個領域幾乎適用於所有人。我們的情況略有不同，因為我們在2019年至2021年期間贏得了大量新項目，這些項目現在已經轉化為訂單和積壓訂單，所以我們積累了大量的積壓訂單。正因如此，我們對未來12個月左右的業績有著非常清晰的預期。

Got it. And then if you could maybe spend a minute talking about -- I think about the 20%, 22% growth rate. You talked a fair bit about APAC and India doing fairly well. How do you think EMEA stacks up for the year from that growth perspective, you sort of think about it? And then I think (inaudible) quote is a little bit weaker there versus the rest of the geos. So maybe just touch on what are you seeing in EMEA for the year? That would be helpful.

明白了。然後，您能否花一分鐘時間談談——我想說的是20%到22%的成長率。您剛剛談到了亞太地區和印度表現相當不錯。從成長的角度來看，您認為歐洲、中東和非洲地區（EMEA）今年的發展前景如何？您對此有何看法？我覺得（聽不清楚）該地區的成長速度比其他地區稍弱。所以，您能否談談您對EMEA地區今年的發展前景有何看法？這將很有幫助。

Jim, do you want to take that?

吉姆，你想拿嗎？

We believe that all of our regions are going to grow pretty meaningfully this year. EMEA is going to grow. I'm not sure that it's quite at this company average, but it will grow very significantly in this year. India is probably going to grow above average, web-scale, well above average.

我們相信今年所有地區的業務都會顯著成長。歐洲、中東和非洲地區（EMEA）肯定會成長。我不確定它能否達到公司平均水平，但今年肯定會有非常顯著的成長。印度地區的成長速度可能會高於平均水平，達到網路規模，遠超平均水平。

Next question comes from Jim Suva from Citigroup.

下一個問題來自花旗集團的吉姆·蘇瓦。

Congratulations. My question is a little bit on gross margins. You'd mentioned that -- I think you said lower -- I'm sorry, around low 40% range. I want to make sure that I understood it correctly, you're not saying 40%. You're just kind of saying lower part of 40%, because I believe your range for the full year is 42% to 44%. But with this long backlog and lead times, should you have kind of more visibility in pricing power? So is it just less modem shippings that you're going to be experiencing in the next quarter? Or why would the margins potentially come in lower? Or maybe I just misheard that.

恭喜！我的問題是關於毛利率的。您之前提到過——我記得您說的是較低的——抱歉，大概在40%左右。我想確認我的理解是否正確，您說的不是40%，而是接近40%的低端部分，因為我記得您全年的毛利率範圍是42%到44%。但是，鑑於目前積壓訂單和交貨週期較長，您的定價權應該會更強一些吧？所以，是不是因為下個季度調變解調器的出貨量會減少？或者，毛利率下降的原因是什麼？也可能是我聽錯了。

It is low range -- low 40s, not below 40%. Now look, there's a range in gross margin, and mix can change. But our expectation is low 40 percentages. So what is that? 41%, 42%, 43%, I don't know. But it's some number like that. And it is absolutely related to a mix change toward line systems and a way for modems, and there's nothing sinister about that. It just has to do with the flow of our deliveries and the fact that, as we said, we won a lot of new projects, a lot of new deployments and they start with line systems. So that's it precisely, and that's why we think it will be low 40s in Q2. We believe that we will average 42% to 44% for the year. I do want to say, though, again, that our expectation is to return to the mid-40s and maybe even beyond that, we'll see but with -- as our business mix changes more. But we've had a lot of change. We've had a lot of exception costs, and we've had this mix shift between modems and line systems, which should equalize over time and get us back to the mid-40s.

毛利率在40%左右，不會低於40%。要知道，毛利率是有波動範圍的，產品組合也會改變。但我們的預期是40%左右。具體是多少呢？ 41%？ 42%？ 43%？我也不確定。但大概就是這個數字。這完全與我們產品組合轉向線路系統和數據機方向有關，這沒什麼不可告人的。這只是與我們的交付流程有關，正如我們所說，我們贏得了許多新項目，許多新的部署，而這些項目都是從線路系統開始的。所以，就是這樣，這就是為什麼我們認為第二季的毛利率會在40%左右。我們預計全年平均毛利率會在42%到44%之間。不過，我還是要再次強調，我們的預期是回到40%中段，甚至可能更高，我們會拭目以待，但這取決於我們業務組合的進一步變化。但我們經歷了很多變化。我們有很多特殊費用，而且調變解調器和線路系統之間的比例也發生了變化，隨著時間的推移，這些變化應該會趨於平衡，使我們回到 40 多美元的水平。

The next question comes from Fahad Najam from Loop Capital.

下一個問題來自 Loop Capital 的 Fahad Najam。

I apologize if I'm going to ask you to repeat on the backlog, I hate to revisit it, but it's too early here in the West Coast. So could you remind us what portion of your $4.2 billion in backlog was longer duration, meaning beyond the next 12 months? And then I have [a real] question that I wanted to ask you.

如果我又要您重複一次積壓訂單的情況，我深感抱歉，我也不想再提這件事，但現在西海岸的情況還太早。所以，您能否提醒我們一下，在您42億美元的積壓訂單中，有多少是長期訂單，也就是超過未來12個月的訂單？另外，我還有一個問題想問您。

Fahad, I can't hear you very well, but I think the question was what percentage going in of the $4.2 billion was outside of FY '23, I don't think we -- I don't think we broke that down.

法哈德，我聽不太清楚你說什麼，但我認為問題是，42 億美元的投入中有多少百分比是在 2023 財年之外的，我認為我們——我認為我們沒有對此進行細分。

I would say that a lot of it would be taken by customers if we could deliver it to them. A very significant percentage of it would be taken, but lead times, component availability, et cetera, are sort of disturbing the situation as we know.

我認為，如果我們能把產品送到客戶手中，他們一定會買很多。很大一部分產品肯定會被買走，但我們也知道，交貨週期、零件供應等等因素都阻礙了銷售。

Got it. Now to my question. On your WaveLogic 6 product announcements, you also announced the WaveLogic 6 nano, the 800-gig ZR, which seems to suggest that if you -- I guess the timeline wasn't announced, but I'm assuming it's first half of '24. And if that's the case, it sounds like you guys are preempting the existing market leaders in the 400 [gig ZR] pluggable market by kind of accelerating the cadence. How big of an opportunity do you see for Ciena in '24, maybe '25 really from ZR, how big of a catalyst could that be to your business, especially in client?

明白了。現在來說說我的問題。在你們發布 WaveLogic 6 產品時，也同時發布了 WaveLogic 6 nano 和 800G ZR，這似乎暗示著——雖然你們沒有公佈具體時間表，但我估計是在 2024 年上半年。如果是這樣的話，你們似乎正在透過加快發布節奏來搶佔 400G ZR 可插拔市場的先機，領先於現有的市場領導者。您認為 2024 年，甚至可能是 2025 年，ZR 能為 Ciena 帶來多大的機會？它能對你們的業務，特別是客戶業務，產生多大的推動作用？

Yes, I wouldn't look at it as trying to disrupt necessarily the natural flow of 400 gig ZR. It is the next step that customers that are interested [in 400 gig ZR], expect to take. And there's a whole ecosystem around moving to these generations, including the entire switch fabric has to get upgraded. So we are doing it, because there are some efficiencies of doing it in parallel with our WaveLogic 6 Extreme. And we want to be ready for that market. But I wouldn't necessarily think it was driven by trying to disrupt the 400-gig ZR market. We just think it's the natural evolution for our customers that play in that space.

是的，我並不認為這是在試圖擾亂400G ZR的自然發展進程。對於那些對400G ZR感興趣的客戶來說，這是他們預期的下一步。向這些新一代交換器過渡需要整個生態系統的整合，包括整個交換架構的升級。我們之所以這樣做，是因為與我​​們的WaveLogic 6 Extreme並行開發可以提高效率。我們希望為這個市場做好準備。但我並不認為我們這樣做是為了顛覆400G ZR市場。我們只是認為這對我們在這個領域發展的客戶來說，是自然而然的演進。

And thank you, everyone, for joining us today. Especially, again, as Jim said, those of us on the West Coast at OFC, we're looking forward to meeting with a lot of you in the next couple of days and we'll see you then. Thank you very much.

感謝各位今天蒞臨。尤其要感謝吉姆所說的，我們這些在OFC西海岸的朋友們，期待在接下來的幾天裡與大家見面，到時見。非常感謝。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已結束。感謝您參加今天的報告。您可以斷開連線了。