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.

美好的一天，歡迎參加 Ciena 2023 財年第一季度財務業績電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給投資者關係副總裁 Gregg Lampf。請繼續。

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.

謝謝你，傑森。早上好，歡迎來到 Ciena 的 2023 財年第一季度業績電話會議。今天接聽電話的是總裁兼首席執行官 Gary Smith；和首席財務官 Jim Moylan。我們的全球產品和服務高級副總裁 Scott McFeely 也與我們一起進行問答。隨著 OFC 今天開始，我們的團隊今天正在接聽來自不同地點的電話。請在問答期間耐心等待，因為我們會協調我們的回复。除了本次電話會議和新聞稿外，我們還在我們網站的“投資者”部分發布了隨附的投資者介紹，其中反映了此次討論以及本季度的某些重點項目。我們今天的評論談到了我們最近的表現、我們對當前市場動態和我們業務驅動因素的看法以及對我們財務前景的討論。

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.

今天的討論包括 Ciena 經營業績的某些調整後或非 GAAP 措施。這些非 GAAP 措施與我們的 GAAP 結果的對賬包含在今天的新聞稿中。在將電話轉給加里之前，我會提醒您，在這次電話會議中，我們將做出某些前瞻性陳述。此類聲明，包括我們的季度和年度指南以及我們的長期財務展望、市場機會和戰略的討論、我們對供應鏈結果對我們業務和最終結果的影響的評論，均基於當前對公司的預期、預測和假設及其市場，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。

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.

本次電話會議中提到的與我們的前景相關的假設包含在不久後發布的投資者介紹中，是此類前瞻性陳述的重要組成部分，我們鼓勵您考慮它們。我們的前瞻性陳述還應結合我們最近的 10-K 文件和我們即將在 3 月 9 日之前向美國證券交易委員會提交的 10-Q 文件中詳述的風險因素來看待，我們預計在該日期之前提交。 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。與往常一樣，今天我們將允許盡可能多的問答，但請您將自己限制在 1 個問題和 1 個跟進。提醒一下，我們將於明天和周三在 OFC 與賣方舉行投資者會議。我們期待在那裡見到你們中的許多人。

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

有了這個，我會把電話轉給加里。

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，大家早上好。今天，我們公佈了出色的第一財季業績，包括高於預期的 10.6 億美元季度收入和 43.7% 的調整後毛利率。事實上，第一季度是我們有史以來收入最高的季度，同比增長 25%。我們還報告了非常強勁的盈利指標，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。這些結果有力地證明了我們的市場領導地位以及對我們整個產品組合中市場領先技術的持續需求。雖然供應鏈尚未完全恢復，組件交付仍存在一些波動，但我們對第一季度的組件可用性和我們相關的強勁出貨表現感到鼓舞。我認為，這既是我們緩解努力的證明點，也是我們期望在今年繼續逐步改善供應環境的積極指標。

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.

我們對這一進展感到非常高興，因為我們將繼續努力滿足客戶的網絡容量需求。憑藉這種強勁勢頭，我們仍然相信我們有能力在短期和長期內以比市場更快的速度增長，當然還有奪取市場份額的能力。這種信心由 3 個基本信念支撐。首先，積極的整體需求環境和我們客戶關係的實力。其次，我們的產品組合具有市場領先的實力，能夠最好地服務客戶需求。最後，可見性，尤其是我們的積壓工作提供的可見性。在需求方面，我們對包括 5G、雲、人工智能和自動化在內的基本驅動因素保持樂觀，並繼續相信它們在長期內非常持久。事實上，這些驅動因素要求網絡運營商增加容量、減少延遲和優化功耗，同時智能融合技術。

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.

這些是核心城域網和越來越多的邊緣網段的關鍵要素。我們的客戶知道，他們必須繼續投資於網絡的關鍵部分，以解決這些業務領域的問題，以保持競爭力。並且有明顯的跡象，包括我們的第一季度訂單簿，表明正在發生。服務於這些需求動態，我們繼續利用我們商業模式的優勢和我們的投資能力，在我們的產品組合中保持創新的前沿。我們領先的技術和對可尋址市場擴張的戰略重點與我們客戶的投資重點密切相關。事實上，您可能已經看到，我們剛剛發布了第六代 WaveLogic 技術，它將再次在相干光學領域樹立新標準，我們在該技術的幾代產品中一直處於市場領先地位。

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 將率先支持高達 1.6 太比特的單載波波長、最長鏈路上的 800 gig 和足跡優化的 800 gig 可插拔模塊，它們同樣具有最低的能耗。我們的最新一代調製解調器技術將在我們的一系列光學和路由和交換平台上得到支持，並且還將可用於第三方解決方案。 WaveLogic 6 中的這些突破性創新是通過我們在相干 DSP 和高帶寬電光學方面的獨特專業知識，利用最先進的 3 納米矽技術實現的。在城域網和邊緣網，我們繼續投資於市場擴張，並以極具吸引力的價值主張進一步鞏固我們作為該領域顛覆性挑戰者的角色。這些投資使我們既能尋求新的機會，又能利用我們在現有客戶中的地位來解決網絡中更深層次的用例。

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.

自從我們上次在 12 月與您交談以來，我們完成了對 Tibit Communications 的收購，這進一步加強了我們在寬帶接入方面的解決方案。現在受益於我們的垂直整合和現代開放式架構方法，我們相信我們已經做好了充分準備，可以進軍這個快速增長的市場，這個市場是多個地區私人和公共投資的重點。這些投資組合將得到軟件和服務方面的類似努力的支持，旨在使客戶能夠實現網絡自動化的額外好處，並執行他們的網絡轉型戰略。

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，讓我談談這一點，鑑於我們的積壓工作，我們的知名度非常高。提醒一下，進入 2020 年，我們已經積累了大量的新設計勝利，而 WaveLogic 5 Extreme 當時才剛剛開始初步商業部署。現在考慮到 COVID 和供應鏈狀況的動態，這些勝利只是在過去幾個季度才開始轉化為訂單。由於在此期間的這些勝利和行業動態，我們的積壓訂單從 2020 財年末的 12 億美元增加到進入 2023 財年的 42 億美元。因此，很明顯，在最近幾個時期，我們的積壓訂單已經遠遠超過歷史水平。

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.

在第一季度，我們的積壓訂單略有下降，因為我們的收入大大超出了預期。當然，這在各個方面都是好消息。首先也是最重要的是，這意味著我們正在向客戶提供更多產品。其次，這表明供應鏈挑戰正在改善。最後，隨著我們將積壓訂單轉化為收入，我們的市場份額增長變得越來越明顯。儘管我們預計鑑於供應鏈動態，訂單會起伏不定，但隨著我們度過 23 世紀，今年的訂單有了一個良好的開端。即使有這些預期的波動，我們預計今年結束時的積壓工作仍將高於我們的歷史水平，儘管低於我們年初的異常水平。

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.

轉向本季度的其他亮點，我認為這些亮點說明了我們為滿足客戶需求所做的努力。在光學方面，WaveLogic 5 Extreme 仍然是世界上部署最廣泛的 800 gig 相干技術，包括第一季度的 13 個新客戶，使我們的客戶總數達到 214 個。第一季度是我們有史以來最大的調製解調器出貨季度，包括 WaveLogic 5e，到目前為止，我們已經為此交付了超過 60,000 個調製解調器。當然，這也是我們有史以來最強勁的 WaveLogic 5e 調製解調器生產季度。

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.

在路由和交換方面，我們將重點放在下一代城域網和邊緣網絡上，繼續努力擴大我們的目標市場並獲得市場份額。總體而言，我們的路由和交換部門的季度收入同比增長 39%。當然，第一季度也是這些平台創紀錄的出貨季度。在這個產品組合中，我們的寬帶接入解決方案在第一季度獲得了新的勝利，其中包括最近從新網絡和 Tibit Communications 獲得的技術。

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.

本季度轉向客戶群和地區，非電信收入佔第一季度總銷售額的 40%。這反映了網絡規模的強勁表現，其中包括本季度 10% 的客戶。直接網絡規模佔本季度總收入的 24%，同比增長 47%。我們對這一年的客戶群仍然非常樂觀。事實上，在 23 財年，我們預計網絡規模的收入和增長將遠高於企業平均水平。

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.

由於我們繼續專注於推動美國以外的增長，亞太地區第一季度的收入同比增長了 41%。這主要是由印度的收入增長推動的，第一季度收入同比增長 150% 至 6400 萬美元，反映出該市場強勁的需求環境。最後，我們非常關注客戶體驗。具體來說，結合我們過去 12 個月的庫存投資以及我們服務團隊準備在我們運送產品時盡快為我們的客戶部署的準備情況。

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，在強勁的基本需求驅動因素、市場領先的技術和平台集以及我們積壓訂單的強大可見性的支持下，我們今天在市場上勢頭強勁。因此，我們有信心我們將在 23 財年實現超額的同比收入增長，並且我們仍然有望實現我們之前提供的 3 年收入 CAGR 前景。

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?

有了這個，我現在將轉向吉姆更多地談論這些項目，並提供有關第一季度財務結果的更多細節。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，加里。大家早上好，對於在 OFC 西海岸的人們來說，這是一個特別美好的清晨。正如加里所說，我們在第一季度的出色表現證明了我們作為市場領導者的強大地位。總收入為 10.6 億美元，高於預期。由於供應商組件交付的改善，特別是在本季度末，我們的產品出貨量超過預期。調整後的毛利率高達 43.7%，反映出有利的產品組合，特別是大量的調製解調器。調製解調器的毛利率高於平均水平，並且在季度末的出貨量中佔很大比例。第一季度調整後的運營費用為 3.29 億美元，反映了我們對 TAM 擴張的投資，其中包括收購新的和 Tibit 的運營支出。

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.

在盈利能力方面，我們在第一季度取得了強勁的業績，包括調整後的營業利潤率為 12.6%，調整後的淨收入為 9560 萬美元，調整後的每股收益為 0.64 美元。此外，我們在本季度使用了運營現金，主要與存貨和應收賬款的增加有關。我們的庫存水平反映了我們對零部件和其他原材料的持續投資，以管理供應鏈波動對我們客戶的影響。隨著供應狀況逐漸改善，我們預計庫存水平會隨著 2023 財年的推移而下降，但相對於歷史水平仍將保持較高水平。我們確實相信今年第四季度的庫存將低於 2022 年第四季度。

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，第一季度調整後的 EBITDA 為 1.551 億美元。受益於第一季度成功的定期貸款交易，我們在本季度末擁有約 12 億美元的現金和投資。提醒一下，在第一季度，我們以大約 2.92 億美元的總價收購了 new 和 Tibit。憑藉我們強勁的資產負債表，我們打算向股東返還資本，包括我們繼續期望在本財年回購約 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.

現在轉向指導。我想明確一點，我即將提供的更新後的展望反映了我們上個季度討論的同一組關鍵假設，這些假設也在我們的收益報告中，包括與供應鏈狀況相關的假設。後一點在仍然不確定的供應鏈環境中尤為重要。我們相信，逐步改善我們在第一季度看到的那種類型的供應條件將開始允許更多地部署我們積累的設計勝利，以及來自追求我們產品組合中一流技術的客戶的新業務。因此，在第二季度，我們預計收入將在 10.35 億美元至 11.15 億美元之間。調整後的毛利率在 40% 的低範圍內，調整後的第二季度營業費用約為 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.

關於本財年，我們預計將實現強勁的份額增長，這已經反映在我們第一季度的顯著收入超額表現和我們對第二季度的預期中。因此，我們現在預計 23 財年的收入增長將達到 20% 至 22%，增幅從 16% 至 18%。對於調整後的毛利率，我們仍然認為我們 23 財年的毛利率將在 42% 至 44% 之間。這反映了我們對未來幾個季度產品組合中更大比例的生產線系統的期望。對於調整後的運營費用，我們預計 2023 財年平均每季度約為 3.35 億美元 - 3.3 億美元。這反映了我們打算繼續對未來進行戰略投資，主要針對下一代城域和邊緣的 TAM 擴展機會。後一個領域發展非常迅速，我們看到了通過我們一流的產品獲得份額的潛力。

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.

從我們今天報告的季度業績以及我們對第二季度和 2023 財年的展望中可以清楚地看出，我們的表現非常出色。我們對自己在業務中的地位感到前所未有的好。強勁的需求驅動因素與市場領先的技術和平台相結合，不斷擴大的可尋址市場和強大的知名度以及我們龐大的積壓訂單使我們對未來幾年的市場份額增長充滿信心。

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

傑森，我們現在將接受賣方分析師的提問。

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

（操作員說明）我們的第一個問題來自 Jefferies 的 George Notter。

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.

我想我想問一些關於積壓的問題。你說它略有下降。你能給我們一個準確的數字嗎？我想你說上個季度是 42 億美元，但只是對更新感到好奇。然後還想知道您是否看到積壓的任何取消，您可以在那裡給我們提供更多詳細信息嗎？然後還有產品交貨時間。顯然，許多業務領域的交貨時間都已延長。我只是好奇那裡有什麼更新。

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.

讓我接受，喬治。我們通常不會給出某種精確的積壓，但考慮到它的環境，我會這樣說，如果我們要在我們的指南的中點完成，那麼我們基本上會補充我們所有的積壓。因此，我們主要處理了一些積壓訂單，因為我們的收入比我們對該季度的預期高出 1 億美元。所以我們仍然有一個非常健康的積壓，但我們預計在這一年會下降。我們認為這種積壓水平是不可持續的，或者坦率地說，是不可取的。客戶需要設備，他們不希望它積壓在我們的訂單中。這確實滲入了關於取消類型的問題的第二部分。我們沒有看到更新有任何變化。這是一個非常小的和次要的，只是正常的普通類型的取消。所以我們對積壓的完整性非常有信心。

What was the third question, George?

第三個問題是什麼，喬治？

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.

我想這只是關於產品交貨時間。我知道它們已經延長了一段時間。我只是想知道你是否能夠在這方面有所作為。

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，我是斯科特，產品交貨時間有所改善，因為我們剛剛運送了更多產品，並且在未來建造了一艘更大的船。他們將在全年繼續改善，儘管我認為我們不會在本財政年度將他們恢復到歷史水平。我不確定新規範是什麼，但隨著我們全年的進行，它們將得到顯著改善。

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

我們的下一個問題來自美國銀行的 Tal Liani。

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.

我對上一個問題有後續，我還有一個關於雲的問題。所以第一個是，當我查看該領域所有公司的結果時，我是 [general networking]，可以說，都是一樣的，這意味著收入非常強勁，利潤率正在上升，因為收入增加了，但積壓正在減少。問題是——我在另一邊問。我的意思是，喬治問你關於積壓的問題，我會問關於環境的問題。問題是，有多少 - 你聽起來非常自信以及 [Cisco] 聽起來很有信心，這種力量中有多少是真正的積壓沖洗和歷史訂單，當積壓下降到正常水平時，這種情況將結束的風險是多少？而其中有多少基本上是真正需要強大網絡——底層網絡的強大環境。所以如果你能談談環境、訂單、項目和客戶的種類等等。這是第一個問題。我會一起問這兩個問題，因為它們是相互關聯的。

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的。例如，我們在 Arista 上看到的另一件事是雲很強大。對於你來說，如果你不介意重複這些數字，但我認為雲增長了 47%。問題是，隨著預算下降，集中在一個大客戶、一個大季度的風險有多大，全年雲計算放緩的風險是什麼？

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，讓我回答這些多個問題中的第一部分。我想說，首先，人們必須從我們所看到的環境中退後一步，這是圍繞整個 COVID 的一種洗盤，然後是巨大的被壓抑的需求，然後是供應鏈問題，等等。因此，在過去的幾年裡，你看到了一系列非常動蕩的動態，而我們今年仍在經歷它。如果你仔細看看這種動態，當我們進入某種新常態時，讓我們假設那是 24 歲。然後我想你可以回顧一下，並說一致的市場需求一直很強勁，中等個位數，我認為這一直是歷史上的。我認為我們看到的所有動態和信號都與此一致。對各種形式的帶寬、更接近最終用戶消費者的需求一直有增無減。但這通常轉化為中等個位數的光學市場增長。

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.

如果你看看那個時期的 Ciena，再一次，與歷史規範相似，我們比那個時期高出幾個百分點。如果你看看我們上個季度基本上給出的未來 3 年的複合年增長率，它在 10% 到 12% 的範圍內。很明顯，我們將獲得很多份額，主要是因為我們在 19 年、20 年和 21 年獲得的勝利現在開始產生收入。所以我認為，是的，我們今年的收入非常可觀。毫無疑問，這顯然會在某個時候正常化，但我們的增長速度將繼續快於市場。從這個角度來看，總體需求 Tal 繼續保持強勁。

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.

轉向網絡規模。顯然，我們與所有主要的網絡縮放器都有關係。本季度我們確實有 10% 的不僅僅是 1 個單一的 1，而是全面的。正如我所說，今年我們將大幅增長 47%。我們預計今年的增長將繼續高於我們的企業平均水平。所以你可以看到它非常強大。我們也繼續看到這些人的良好活動。

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.

只是為了補充一點，Tal。在過去的 3 或 4 年裡，我們經歷了一段時間，網絡縮放器在其業務的幾乎每個指標上都取得了巨大的增長。而且我認為他們在世界上發生的事情之後審視他們的業務是很自然的，我們已經看到市場上有很多關於他們正在與他們的員工一起做什麼以及他們正在做什麼的噪音他們正在處理他們的資本支出。但如果你看透所有這些，基礎業務仍然強勁。他們的雲業務很強大。所以我 - 我們沒有看到對他們的需求有任何影響。有動盪和淘汰之類的事情，但我們看不到他們業務的基本性質有任何重大變化。他們在成長。

Our next question comes from Samik Chatterjee from JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

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.

所以我有幾個問題，也許只是從我們今天早上收到的一個問題開始。我想，Gregg，你提到過 - 抱歉，Gary，你提到過總的來說，如果你達到了 1Q 指南的中點，你就會補充積壓。我認為上個季度，你曾說過你在假設你達到中點的情況下建立積壓。因此，我認為出現的一個問題是，即使在強勁的訂單數量中，是否存在一些弱點導致訂單數量略低於您的預期？我有一個後續行動，請。

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.

我不會那樣描述它。對我們來說，這是一個非常非常強大的 Q1。仔細想想，那種數字是很強的。我會提醒人們，我知道人們關注積壓訂單中的訂單。積壓不能也不應該保持它的水平。所以訂單流動，雖然它們很好，但與發貨不匹配。我們預計在年內。因此，我們希望非常簡單地結束本季度 - 今年結束時積壓的訂單比我們進入的要少。這對我們的客戶和我們來說都是一個好結果。所以我認為我們實際上有非常強勁的第一季度訂單。但我要特別提醒的是，現在只按季度計算訂單指標。我們將在這一年中看到一些潮起潮落。毫無疑問。我的意思是，去年我們的訂單增長了 25%。如果你看看末尾，我認為那是 22 財年的第三季度，如果你看看過去的 12 個月，它上漲了 60%。那是不可持續的。雖然它很棒，並且很好地展示了我們所取得的所有勝利，但我們必須在下一階段的業務中將它們轉化為收入。而且我們仍然相信我們將有一個非常好的 24 年，並且會有大量積壓。但從訂單的角度來看，這不會是一條直線，這是肯定的。你問題的第二部分，Samik。

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。我知道我們對這裡的小數字很滿意。但也許在這里切換到 WaveLogic 6，你剛剛提到 WaveLogic 5 訂單在最近幾個季度確實開始增加。那麼，您如何看待隨著 WaveLogic 6 的發布，如此之快的連續發布，以至於客戶開始推動他們向 WaveLogic 5 遷移並等待直到 WaveLogic 6 上市的可能性，只是考慮到它是如此排序緊隨 WaveLogic 5 訂單開始回升？

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。所以首先，只是澄清一點。 WaveLogic 5 訂單是我們在過去 18 個月看到的訂單增長的重要組成部分。所以這確實是加里所說的整個訂單動態的縮影。所以我們現在正在做的是我們正在加速，將這些轉化為收入，並將它們轉化為對我們客戶的出貨量。所以我想我聽到你說了一些不同的話，所以只是澄清一點。我想到 WaveLogic 6，正如我們所說，時間是 24 年上半年。顯然，我懷疑我們會比這更早開始看到設計勝出。但我會指出，下一代技術在出貨量或收入方面真正超過上一代技術需要幾個週期。例如，上個季度是 WaveLogic 5 成為我們所有一代技術中出貨量最大的第一季度，並且已經上市幾年了。

Our next question comes from Paul Silverstein from Cowen.

我們的下一個問題來自 Cowen 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，很抱歉回到這個問題，但我們似乎是一群行動遲緩的人。所以我會添加到它。相對於投資者對運營商和網絡規模資本支出的擔憂，你怎麼看——從你的評論來看，聽起來你沒有看到任何弱點。如果我正確理解了您的評論，這聽起來像是實力相當廣泛。是什麼在推動它，它們之間的脫節是什麼？而且我注意到各個公司收入的資本支出趨勢遠非相同。什麼 - 你能給我們任何增量見解嗎？是什麼推動了你相對於今年前景的實力，許多客戶一直在談論的那些削減？

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.

好吧，我認為首先，您要處理大量被壓抑的需求，以及由於交貨時間延長而下達的訂單。和運營商——我的意思是，讓我非常清楚，運營商和網絡規模需要這些設備。毫無疑問。他們想要設備。現在我要說的是，這是第一次在網絡規模的領域，我們看到他們設法控制了預算。所以就算他們想要所有的裝備，也不能把一年的裝備全部拿走。我們正在看到這一點，並將其納入我們的指南。即使我們在網絡規模上看到了巨大的增長，我們的指南中也包含了這一點。因此，他們正在將內容安排到 24 世紀，這很棒，因為它為我們提供了積壓和可見性。我們知道他們希望設備能夠完善他們所驅動的網絡。所以這實際上是一種積極的動態，但他們是——網絡規模，尤其是在管理他們的預算。我們正在看到這一點，我們在過去幾個季度已經看到了這一點。

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.

在運營商方面，同樣，他們有被壓抑的需求，他們像往常一樣，管理著他們的預算和資本支出。但我要說的是，他們的首要任務實際上是在這個領域，並且是建立他們網絡的能力。特別是當你考慮過去 2 到 3 年時，首先，他們沒有在 COVID 期間，他們在運營上是保守的，而且市場的增長實際上非常平穩。然後他們有被壓抑的需求，然後我們不能及時發貨給他們。

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，他們現在的首要任務是推出這些網絡。很明顯，他們無法免受所有經濟不確定性的影響。但考慮到圍繞他們網絡容量的特定需求動態，我們對此有很好的了解，不僅在積壓工作中，而且在我們與他們一起看到的活動中。這就是我描述這兩個群體的方式。從預算的角度來看，我們沒有看到運營商方面有任何推出。我們沒有看到它。

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，這些數字清楚地表明 ZR 至少目前沒有產生不利影響。我注意到你們 - 我一直 - 所有（聽不清）都表明你們擁有市場上最低功耗的解決方案，這顯然是一個關鍵因素。您現在宣布了 3 納米的 WaveLogic 6。我認為沒有其他人宣布過 3 納米，這大概會——我承認它不一定是 ZR，但大概會在功率效率方面繼續你的軌跡。但是讓我讓你回應。與該機會相關的關於您參與的活動的任何更新（如果有）？

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，自從我們上次聊天以來，我認為我們的觀點沒有太大變化。我堅信我們擁有市場上最好的可插拔產品，無論是您提到的功率還是 [reach]。並且已經開始有一些外部參考來驗證這一點。我們仍然認為校園 DCI 的 ZR 市場仍然擺在我們面前。有一些早期的動作。我認為他們進入網絡的速度沒有人們預期的那麼快。但隨著這種庫存狀況和那些客戶流失，我們認為我們面前會有機會。

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？本季度 Tibit [收入] 有任何有意義的貢獻嗎？

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，保羅。他們在本季度晚了一點，現階段沒有有意義的收入貢獻。

Our next question comes from Tim Long from Barclays.

我們的下一個問題來自巴克萊銀行的 Tim Long。

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，2，如果可以的話。首先，我想談談路由和交換，它們在本季度似乎有所上升。你能談談用例或銷售的增長，或者保持業務擴展需要什麼嗎？其次，從更高的層次來看，從整體上看，服務業務的種類繼續滯後於產品。同行中的大多數公司似乎都與那裡的收入相當。那麼，您能否談談為什麼我們在本季度相應地看到服務表現不佳且毛利率相當低？

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.

- 讓我先談談第二個 1，即服務部分。因此，它實際上更多地與項目組合和產品收入交付的時間與 [安裝] 項目的類型有關。我認為服務業務相對於我們這裡的設備業務的表現沒有可持續的差異。這實際上只是基於時間和項目，特別是基於安裝的服務。這兩者都有，你指出的收入比率，但也有利潤率的影響，因為我們在服務部分承擔了一些固定成本，而且收入時間沒有 - 有點偏離，你認為它是從短期利潤率的角度來看有點不利。這就是服務動態。

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.

在路由和交換部分，您完全正確。路由和交換方面的良好季度。連續有幾個，所以我們對那裡的勢頭感到非常興奮。在許多用例中，我們是構建下一代架構的挑戰者。因此，我們認為，就實現我們談到的擴大的 TAM 而言，未來仍然擺在我們面前。提醒您，我們一直關注的關鍵用例包括無線傳輸；採用 XGS-PON 的下一代住宅寬帶；企業優勢，物理和虛擬能力；然後是一個融合的城域網核心，從我們的 IP 能力和我們在那裡的光學優勢中受益。因此，我們對成為該領域的挑戰者以及擺在我們面前的持續機會感到非常興奮。

Our next question comes from Simon Leopold from Raymond James.

我們的下一個問題來自 Raymond James 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?

我想問一下兩者的結合，因為我認為它們是相關的，但我想看看你是否可以談談你對印度的期望。我從加里那裡得到了關於本季度 6400 萬美元的評論。我想去年，你大約佔收入的 2%。只是想更好地了解印度的可持續性和前景。與此相關的問題是，更廣泛地說，您對能夠取代華為的想法和最新消息，不僅是在印度，而且在中國以外，在全球範圍內，您如何看待自己從華為那裡贏得份額而不是競爭對手的地位？

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，讓我拿印度那個。是的，我認為我們開始看到我們在行業中普遍預期的情況，即在印度的強大建設。您在我們的結果中看到了這一點。坦率地說，我希望印度有一個非常 - 不僅是美好的一年，而且對我們來說可能是美好的 3 年。那裡有一個完整的投資週期，主要由某種 5G 建設驅動。但總的來說，那裡的投資是世界上增長最快的互聯網市場，我們擁有排名第一的市場份額並且在那里處於有利地位。所以我們對印度非常樂觀。這將是一個強勁的周期。

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.

還有華為——實際上是在印度了解華為，然後擴大你的問題，西蒙。其中很多決定已經做出。相對於世界其他地區，我認為印度在取代華為方面的行動非常迅速。我們當然從中受益。我們已經取得了勝利，現在正在推出，這是直接替代。我認為歐洲是另一種市場區域，尤其是他們正在取代華為的地方。但在歐洲，這是一個多年的過程。我認為我們在歐洲贏得了應有的份額。隨著他們更換基礎設施，這種情況將在未來幾年繼續下去。他們最初的重點不是在無線領域與他們一起建設。那種交通工具是他們到達那裡就進入的。他們開始著手實現這一目標，並將繼續下去。

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.

一般來說，世界其他地區的反應較少。你看看非洲，你看看拉丁美洲，沒有像你在地緣政治方面看到的那麼多取代華為的運動——尤其是在歐洲和亞洲的某些其他國家。所以這就是保持航向和速度，我會這樣描述它。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 [pond] 領域擁有相當大的市場份額。這就是我們對它感興趣的原因之一，因為我們相信它們在池塘區域的阻力與在網絡核心區域的阻力相同。

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?

只是為了澄清印度的意見。我認為之前的峰值，我認為 2018 年約為收入的 9%。因此收入基礎較小。只是想知道，這項業務是否可能足夠重要，可能不會始終如一，但至少接近收入的 10%？還是這種 6400 萬美元左右的水平是可持續的？我們如何看待這一點？

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.

我認為作為我們收入的一部分，絕對百分比增長是可能的。現在其他一切都在增長，你可以看到交換和路由方面的增長。好吧，你會看到上升趨勢，尤其是在網絡規模等方面。那麼它會再次觸及 10% 嗎？這可能有點高，但它肯定可以成為我們的主要貢獻者。毫無疑問。

The next question comes from Meta Marshall from Morgan Stanley.

下一個問題來自摩根士丹利的 Meta Marshall。

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.

偉大的。問我幾個問題。也許只是從毛利率開始。正如您考慮年份和供應鏈一樣，似乎比預期發布得早一點，了解您今年的毛利率大致相同。但是，有什麼我們應該以不同的方式思考的，因為更多的新部署、更少的供應鏈開銷，以及他們在那裡考慮的任何事情？其次，考慮到它現在的主題性質，只是想知道你們如何看待 DCI 的 AI 機會，以及它是否相對較小，因為它主要在數據中心流量中，或者你是否認為，這可能是一種為你們提供額外的增長動力。

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

謝謝你，梅塔。吉姆，你為什麼不回答第一部分，（聽不清）毛利率問題？

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?

好吧，謝謝，加里。正如我們一直說的那樣，Meta，我們歷史上和未來毛利率中最重要的因素是混合。我們已經贏得了世界各地客戶的大量部署和新項目，包括需要我們新的可重構線路系統的網絡定標器。我們預計今年，我們將向大量客戶提供更高比例的 RLS（可重構線路系統），這些部署將對我們的毛利率產生稀釋影響。到目前為止，它還沒有在很大程度上發生，但它會發生。因此，我們認為這將影響我們未來幾個季度的毛利率下降。另一方面，我們確實認為我們去年所說的異常成本使我們的毛利率可能下降 300 或 400 個基點，將開始下降。這些是我們在經紀人市場上支付給經紀人的組件成本以及更高的物流成本。因此，這是混合轉變和這些例外成本的結合，這正在影響我們的利潤率。我們確實在第一季度說過，我們的調製解調器比例更高，高於平均毛利率。我們確實認為，隨著我們度過這一年並開始提供 RLS，調製解調器的百分比會有所下降。現在對於未來，我們認為所有這些事情都會趨於平均化，我們確實認為在接下來的幾年裡，我們將回到我們在 COVID 之前享受的 40 多歲的毛利率。人工智能加里？

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，關於你的 AI 問題，你是對的，現在的興趣社區主要在數據中心的後端。但是當你看到這些數據中心架構由於需要獲得越來越多的能力來服務應用程序而變得越來越分散時，你看看人工智能將要產生的流量，那將會有一個流血者對 [WAN] 側流量的影響對於我們這些從事帶寬業務的人來說是一件好事，而且對於網絡規模的直接網絡以及為這些網絡規模提供服務的服務提供商來說都是一件好事。

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.

我要說的第二件事是，隨著人們期待數據中心內這個人工智能世界的未來，架構中正在發生許多有趣的動態變化。這些架構開始引發關於連貫技術在未來這些架構中發揮作用的對話。你會在我們的 WaveLogic 6 公告中看到，開始談論行業有一種措辭相干的光，以及那一代技術中我們利用和參與這些架構的能力。所以這對我們來說是一個新的[新]空間。因此不一定在我們 3 年收入指導的時間表中。但就在那個地平線之外，我們開始看到這些機會。

The next question comes from David Vogt from UBS.

下一個問題來自瑞銀集團的 David Vogt。

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?

偉大的。如果我要強調關於積壓和訂單的觀點，我深表歉意。加里，也許只是為了在電話會議上發表評論。根據積壓情況，本季度的訂單出貨比可能低於 0.9，這聽起來確實很像。那是對的嗎？如果我們推斷全年的趨勢，這是否意味著積壓會根據您的預期在十幾歲左右下降？

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.

然後也許如果我向前推進，這是我對 3 年模型的第二個問題。如果光學行業正在以中等個位數的速度增長，您能否對光學市場的份額增長發表評論？因為如果我只取你指南的中點，我會假設在你 3 年計劃的後半部分，即 24 年和 25 年，Ciena 的收入只會增長 6% 左右。所以我只是想弄清楚這一點。

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。當然，大衛。首先，關於積壓，不，這不是正確的假設。第一季度超過 0.9，大約就是這樣。年底積壓，正如我們所說，我認為每個人都需要了解這樣一個事實，即我們不會有 25% 的訂單同比增長以及為此建立的具體動態.我們預計進入 24 世紀時積壓的工作量將超過我們通常進入任何財政年度的工作量。因此，積壓的訂單仍然會非常多。現在的重點是運送我們擁有的積壓訂單並減少我們的交貨時間。如果你看一下——我們給出了一個 3 年的指南，一個複合年增長率。我們只在上個季度給出了它。所以我們已經進行了 36 個月。而且我不知道有多少公司提供這種特殊性。因此，我們非常有信心該複合年增長率將增長 10% 至 12%。

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，今年我們運送了積壓的訂單，這是一個非常大的一年。但如果你仔細觀察所有這些以及各個季度甚至各個年份的動態，就會發現在一個增長率約為 5% 的市場中，增長率為 10% 到 12%。這通常是 Ciena 在過去十年左右所做的事情。考慮到我們擁有的領先技術，考慮到我們擁有的投資概況和客戶規模，我們認為這是非常非常強勁的表現。所以我認為——我不知道在我們這個領域有多少像我們這樣規模的公司在談論今年 21% 範圍的中點。

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.

需要明確的是，我們的未來沒有改變。我們仍然對我們在市場中的地位和我們的成長能力感到滿意。大衛，我們確實給出了一個範圍。因此，要快速跳到數學方程式，在這個動盪和變化的時代可能沒有正確的想法。我們對自己的增長速度超過市場的能力感到非常滿意。

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，加里，也許在你談論的積壓動態即將結束時，這是思考你認為今年積壓退出的方式嗎？而且我認為從歷史上看，你已經談到過如果我沒記錯的話，正常範圍內的積壓數量應該在 7.5 億美元到 10 億美元之間。您需要多長時間才能完成標準化的積壓工作？它是一個 24 小時流程還是更遠的流程？

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，老實說，老實說，我不知道新常態會是什麼樣子。而且我認為這種動態在很大程度上是由需求驅動的，不一定是由需求引起的。需求一直非常穩定而且非常穩固。這是通過交貨時間滿足該需求的能力。因此，即使在非常大的基礎設施項目中，這個領域的交付週期也是 10 到 12 週。我不確定他們是否會恢復到那種產品的水平。對於訪問和邊緣以及其餘部分，絕對是 2 週或任何應該圍繞它的動態。但我不確定新常態會是什麼樣子，也不確定新常態何時真正開始，因為供應鏈仍然存在波動。情況越來越好，毫無疑問，這很棒。

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.

因此，很難準確預測我們何時會回到某種新常態，甚至，阿米特，這種新常態可能是什麼樣子。但這將是比我們現在看到的更好的交貨時間。毫無疑問。這將反映在減少業務積壓上。對於這個領域的每個人來說都是一樣的。這對我們來說有點不同，因為我們在 19 年到 21 年的時間框架內取得的新勝利現在已經轉化為訂單和積壓，因此我們有大量積壓。因此，這就是讓我們在接下來的 12 個月左右的時間裡獲得極好的可見性的原因。

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.

知道了。然後，如果你能花一點時間談談——我想談談 20%、22% 的增長率。您談到了亞太地區和印度做得相當不錯。從增長的角度來看，您如何看待今年的 EMEA，您對此有何看法？然後我認為（聽不清）那裡的報價與其他地區相比要弱一些。那麼也許只是談談你今年在 EMEA 看到了什麼？那會很有幫助。

Jim, do you want to take that?

吉姆，你要拿那個嗎？

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.

我們相信今年我們所有的地區都將實現非常有意義的增長。 EMEA 將會增長。我不確定它是否達到了這家公司的平均水平，但它在今年將會有非常顯著的增長。印度的增長可能會高於平均水平，網絡規模，遠高於平均水平。

Next question comes from Jim Suva from Citigroup.

下一個問題來自花旗集團的 Jim Suva。

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。你提到過——我想你說的較低——對不起，大約在 40% 左右。我想確保我理解正確，你不是說 40%。你只是說 40% 的較低部分，因為我相信你全年的範圍是 42% 到 44%。但是，由於積壓和交貨時間如此之長，您是否應該對定價權有更多的了解？那麼，您將在下個季度經歷的調製解調器出貨量會減少嗎？或者為什麼利潤率可能會降低？或者也許我只是聽錯了。

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.

它是低範圍——低 40s，不低於 40%。現在看，毛利率有一個範圍，而且組合可以改變。但我們的預期是低 40%。那是什麼？ 41%、42%、43%，我不知道。但它是這樣的一些數字。它絕對與向線路系統和調製解調器方式的混合變化有關，這沒有什麼不好的。這只與我們的交付流程有關，而且正如我們所說，我們贏得了很多新項目，很多新部署，它們都是從生產線系統開始的。就是這樣，這就是為什麼我們認為第二季度將低於 40 美元。我們相信我們今年的平均增長率將達到 42% 至 44%。不過，我確實想再次說，我們的期望是回到 40 年代中期，甚至可能超過 40 年代，我們會看到——隨著我們的業務組合發生更多變化。但我們已經有了很大的改變。我們有很多異常成本，我們已經在調製解調器和線路系統之間進行了這種混合轉換，隨著時間的推移應該會平衡並讓我們回到 40 年代中期。

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.

如果我要請您重複積壓工作，我深表歉意，我不想重新審視它，但在西海岸這裡還為時過早。那麼，您能否提醒我們，在您的 42 億美元積壓訂單中，有哪一部分是持續時間較長的，即超過接下來的 12 個月？然後我有一個 [真正的] 問題想問你。

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.

Fahad，我聽不太清楚，但我認為問題是在 23 財年之外投入的 42 億美元中有多少百分比，我認為我們 - 我認為我們沒有打破它。

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.

我會說，如果我們可以將其交付給客戶，其中很多都會被客戶拿走。其中很大一部分將被採用，但交貨時間、組件可用性等等，正如我們所知，有點令人不安。

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?

知道了。現在回答我的問題。在你的 WaveLogic 6 產品公告中，你還宣布了 WaveLogic 6 nano，即 800-gig ZR，這似乎表明如果你 - 我猜時間線沒有公佈，但我假設它是 24 年的上半年.如果真是這樣，聽起來你們正在通過加快節奏搶占 400 [gig ZR] 可插拔市場中現有的市場領導者。您認為 24 年 Ciena 的機會有多大，也許 25 年真的來自 ZR，這對您的業務（尤其是客戶）有多大的催化劑？

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，我不會將其視為試圖破壞 400 gig ZR 的自然流動。這是對 [400 gig ZR] 感興趣的客戶期望採取的下一步。整個生態系統都圍繞著向這些世代遷移，包括必須升級整個交換結構。所以我們正在這樣做，因為與我們的 WaveLogic 6 Extreme 並行進行有一些效率。我們希望為那個市場做好準備。但我不一定認為它是試圖破壞 400-gig ZR 市場所驅動的。我們只是認為這是我們在該領域發揮作用的客戶的自然演變。

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.

感謝大家今天加入我們。尤其是，正如吉姆所說，我們這些在 OFC 西海岸的人，我們期待在接下來的幾天裡與你們中的許多人會面，我們會再見。非常感謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。