Ciena Corp (CIEN) 2024 Q2 法說會逐字稿

Ladies and gentlemen, welcome to the Ciena's fiscal second quarter 2024 financial results conference call. (Operator Instructions) Please note that this event is being recorded. I would like now to turn the conference over to Gregg Lampf, Vice President of Investor Relations. Please go ahead.

女士們、先生們，歡迎參加 Ciena 2024 財年第二季財務業績電話會議。（操作說明）請注意，本次活動正在錄影。現在我將把會議交給投資者關係副總裁格雷格·蘭普夫。請繼續。

Thank you, George. Good morning and welcome to Ciena's 2024 fiscal second quarter conference call. On the call today is Gary Smith, President and CEO, and Jim Moylan, CFO. Scott McFeely, Executive Advisor is also with us for Q&A. 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.

謝謝你，喬治。早安，歡迎參加Ciena公司2024財年第二季電話會議。今天參加電話會議的有總裁兼執行長 Gary Smith 和財務長 Jim Moylan。執行顧問史考特‧麥克菲利也來到現場，參與問答環節。除了本次電話會議和新聞稿之外，我們還在網站的投資者關係部分發布了一份配套的投資者演示文稿，其中反映了本次討論以及本季度的一些重點項目。

Our comments today speak to our recent performance. Our view on current market dynamics and drivers of our business as well as a discussion of our financial outlook. 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.

我們今天的評論是對我們近期表現的回應。我們對當前市場動態和業務驅動因素的看法，以及對我們的財務前景的探討。今天的討論包括Ciena公司經營績效的某些調整後指標或非GAAP指標。今天的新聞稿包含了這些非GAAP指標與我們的GAAP績效的調節表。

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, commentary on market dynamics, and discussion of opportunities and strategy 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.

在將電話交給 Gary 之前，我要提醒各位，在本次通話中，我們將做出一些前瞻性陳述。此類聲明，包括我們的季度和年度指導、對市場動態的評論以及對機會和戰略的討論，均基於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聲明存在重大差異的風險和不確定性。

Assumptions relating to our outlook, whether mentioned on this call are included in the investor presentation that we will post 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 and our 10-Q, we expect to file with the SEC later today.

與我們展望相關的假設，無論是否在本次電話會議中提及，都將包含在我們稍後發布的投資者簡報中，這些假設是此類前瞻性聲明的重要組成部分，我們鼓勵您考慮這些假設。我們的前瞻性聲明也應結合我們最新的 10-K 和 10-Q 文件中詳述的風險因素來看待，我們預計將於今天晚些時候向美國證券交易委員會提交這些文件。

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, will allow for as much Q&A as possible today, So I ask that you limit yourselves to one question and one follow-up.

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，今天我會盡可能地安排問答環節，所以請各位每人只提一個問題，並附帶一個後續問題。

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. As you've seen from the press release, today we reported fiscal second quarter revenue of $911 million and adjusted gross margin of 43.5%. Q2 performance also included quarterly adjusted operating margin of 6.8% and quarterly adjusted EPS of $0.27. And we generated [$42 million] in free cash flow in the quarter. Later in the call Jim will provide additional details about our Q2 financial performance as well as highlights from the quarter with respect to our portfolio and business outlook.

謝謝格雷格，大家早安。正如您從新聞稿中看到的，我們今天公佈了第二財季的收入為 9.11 億美元，調整後的毛利率為 43.5%。第二季業績還包括季度調整後營業利益率為 6.8%，季度調整後每股收益為 0.27 美元。此外，我們本季產生了 4,200 萬美元的自由現金流。在電話會議的稍後部分，Jim 將提供有關我們第二季財務業績的更多細節，以及本季我們在投資組合和業務展望方面的亮點。

Since we spoke with you about 90 days ago, industry dynamics and therefore, our current operating environment are largely unchanged. Specifically, the drivers of bandwidth demand remain strong and durable, increasing cloud adoption and a growing number of AI use cases are accelerating global data generation. As a result, network traffic is increasing and forecast to continue growing at a strong rate. This all really means that demand for bandwidth will continue to grow at 30% [CAGR], if not more.

自從大約 90 天前我們與您交談以來，行業動態以及我們目前的經營環境基本上沒有改變。具體而言，頻寬需求的驅動因素依然強勁且持久，雲端採用率的提高和人工智慧用例的不斷增加正在加速全球資料產生。因此，網路流量正在增加，預計還將繼續保持強勁成長勢頭。這一切都意味著，頻寬需求將繼續以 30% 的複合年增長率成長，甚至更高。

But despite this positive secular demand, as we all know, it is taking longer than we and others in our industry initially expected for service providers to absorb and deploy the large amount of inventory they have accumulated over the last year or so. And we are still seeing some caution related to macroeconomic concerns, particularly internationally. Importantly, we continue to believe these dynamics are temporary, and we are seeing some encouraging signs of recovery beginning to emerge, including with respect to order volumes.

但儘管存在這種積極的長期需求，我們都知道，服務提供者吸收和部署他們在過去一年左右積累的大量庫存所需的時間比我們和業內其他人最初預期的要長。我們仍然看到一些與宏觀經濟擔憂相關的謹慎情緒，尤其是在國際上。重要的是，我們仍然相信這些動態是暫時的，我們看到一些令人鼓舞的復甦跡象開始出現，包括訂單量方面。

In fact, there was several highlights from Q2 that I think illustrate not only an improving service provider environment overall, but also accelerating cloud provider dynamics and the overall momentum in our business. Specifically with respect to our service provider customers, orders in Q2 increased from the prior quarter and service provider revenue was up sequentially in Q2. 10% customer in the quarter was a service provider.

事實上，第二季出現了一些亮點，我認為這不僅表明服務供應商的整體環境正在改善，而且還表明雲端供應商的動態正在加速發展，以及我們業務的整體發展勢頭良好。具體來說，就我們的服務提供者客戶而言，第二季的訂單量比上一季增加，服務提供者的收入也比上一季有所成長。該季度 10% 的客戶是服務提供者。

Very importantly, service provider inventory levels are starting to decline and service provider engagement and RFP activity levels are higher than in the past several quarters, resulting in several recent new wins and a growing pipeline of opportunities. For example, we secured a significant design win in Q2 with a leading North American Tier 1 service provider for a multiyear network evolution project that includes both our line systems as well as our transponders. Based on these data points, we believe the order flows from our service provider customers will continue to improve from here.

非常重要的一點是，服務提供者的庫存水準開始下降，服務提供者的參與度和 RFP 活動水準高於過去幾個季度，促成了最近幾個新的中標項目和不斷增長的潛在機會。例如，我們在第二季度與北美領先的一級服務提供商達成了一項重要的設計合作，這是一個為期多年的網路演進項目，其中包括我們的線路系統和轉發器。根據這些數據點，我們相信來自服務提供者客戶的訂單量將繼續改善。

Turning to our cloud provider customers in Q2, we secured important new design wins in this customer segment across terrestrial, submarine, and coherent pluggable applications. As we leverage the opportunities presented by strategic investments to build out their data center infrastructures. Two of these wins include long-term awards for deployment of our optical systems across their global network infrastructure.

第二季度，我們轉向雲端服務供應商客戶，在該客戶群中獲得了重要的全新設計訂單，涵蓋陸地、海底和相干可插拔應用。我們將利用戰略投資帶來的機遇，建構其資料中心基礎設施。其中兩項獲獎包括長期合同，用於在其全球網路基礎設施中部署我們的光系統。

We are also starting to build meaningful momentum with cloud providers for our coherent pluggables. In addition to the significant design win we announced last quarter for our 400-gig ZR+ plugs, we added two new cloud provider wins in Q2 for these products, including one that is a new customer Ciena. And later this calendar year, we'll bring to market WaveLogic 6 Nano, our next-generation coherent pluggable family. With this, we will be first to market with the power advantage of 3 nanometer technology.

我們也開始與雲端服務供應商建立有意義的聯繫，以推廣我們的一致性可插拔產品。除了上季宣布的 400G ZR+ 插頭的重大設計勝利之外，我們在第二季度又贏得了兩家新的雲端服務供應商，其中包括新客戶 Ciena。今年晚些時候，我們將推出 WaveLogic 6 Nano，這是我們的下一代相干可插拔晶片系列。憑藉這項技術，我們將率先把3奈米技術的功率優勢推向市場。

And in Q2, we are pleased to advise that we were already awarded business by a large cloud customer for this 800-gig ZR+ technology. As expected, in addition to our market-leading optical systems business with cloud providers, our coherent pluggable solutions represents an incremental business and market share growth opportunity for Ciena with these customers, particularly in shorter reach DCI type applications.

我們很高興地宣布，在第二季度，我們已經從一家大型雲端客戶那裡獲得了這項 800GB ZR+ 技術的業務。正如預期的那樣，除了我們與雲端供應商的市場領先的光系統業務外，我們的相干可插拔解決方案也為 Ciena 帶來了與這些客戶共同成長的業務和市場份額的機會，尤其是在短距離 DCI 類型的應用中。

And as a reminder, as much as 50% of our total revenue is driven now directly and indirectly from cloud providers. And we anticipate continued growth from this customer segment in the second half of fiscal 2024, particularly as WaveLogic 6 becomes generally available for both systems and next-generation pluggable applications. This will obviously give us significant time to market advantage with cloud providers who typically adopt these leading type technologies more rapidly.

再次提醒大家，目前我們總收入的 50% 直接或間接來自雲端服務供應商。我們預計，在 2024 財年下半年，該客戶群將持續成長，尤其是在 WaveLogic 6 全面應用於系統和下一代可插拔應用程式之後。這顯然會讓我們比雲端服務供應商擁有顯著的市場搶佔優勢，因為他們通常會更快地採用這些領先技術。

Stepping back, understandably, there's been a lot of focus on short term industry dynamics in recent quarters, and we continue to manage through those. Importantly, we remain focused on the longer-term demand drivers of our business and our growth opportunities.

退一步講，可以理解的是，最近幾季人們的關注點大多集中在短期產業動態上，而我們也將繼續應對這些動態。重要的是，我們始終專注於推動業務長期需求和成長機會的因素。

With that said, I'd like to take a few minutes to walk you through how we're thinking about the market will evolve and how we will benefit from that evolution. As I mentioned earlier, the fundamental industry drivers of bandwidth demand and network growth traffic continue to increase. These drivers are increasingly being impacted by separable business and network architectural trends.

說到這裡，我想花幾分鐘時間向大家介紹我們對市場發展趨勢的看法，以及我們將如何從這種發展中受益。正如我之前提到的，頻寬需求和網路流量成長等行業基本驅動因素持續增加。這些驅動因素正日益受到可分離的業務和網路架構趨勢的影響。

Obviously, first and foremost, an increasing portion of bandwidth demand and network traffic growth will be driven by AI. The traffic flows from AI and machine learning will pressure all parts of the network from broadband access to the metro to inside and around the data center, thereby impacting both service provider and cloud provider networks.

顯然，首先，越來越多的頻寬需求和網路流量成長將由人工智慧驅動。來自人工智慧和機器學習的流量將對網路的各個部分造成壓力，從城域寬頻連接到資料中心內部和周圍，從而影響服務供應商和雲端供應商的網路。

As an example, one of our North American Tier 1 service provider customers recently reported, they are seeing a dramatic rise in demand for high-capacity, low-latency network and edge services, specifically related to the advent of Gen-AI and the complexity of hybrid multi-cloud architectures. Optical delivers the combination of high capacity and low latency essential to supporting this type of traffic.

例如，我們的一位北美一級服務供應商客戶最近報告說，他們發現對高容量、低延遲網路和邊緣服務的需求急劇上升，這與人工智慧的出現以及混合多雲架構的複雜性密切相關。光纖傳輸兼具高容量和低延遲的優點，這對於支援此類流量至關重要。

Another opportunity where we have a significant funnel of opportunities is managed optical fiber networks or known as MOFN. This term, MOFN, may be new to you, so let me briefly explain what it means. While cloud providers can build their own network infrastructure in many parts of the world, certain countries have specific rules for fiber ownership, policies on licensing, and standards for workforce qualifications. In addition, given the need to add capacity sometimes very quickly, cloud providers are turning to MOFN even in jurisdictions where there are no such restrictions.

另一個我們擁有大量機會的領域是託管光纖網路（MOFN）。MOFN 這個術語你可能還不熟悉，所以讓我簡單解釋一下它的意思。雖然雲端服務供應商可以在世界許多地方建立自己的網路基礎設施，但某些國家對光纖所有權、許可政策和勞動力資格標準有特定的規定。此外，由於有時需要快速增加容量，即使在沒有此類限制的司法管轄區，雲端服務供應商也開始轉向 MOFN。

With MOFN telecom service providers build highly advanced optical networks and lease fiber pairs to cloud providers. This enables the cloud providers to quickly expand their reach and better serve their end users. This is an example of an indirect source of revenue from the cloud providers through our service provider customers. Ciena is obviously uniquely positioned to lead this model by leveraging our strong relationships and presence with both global cloud and service providers.

利用 MOFN，電信服務供應商可以建構高度先進的光網絡，並將光纖對租給雲端服務供應商。這使得雲端服務供應商能夠快速擴大服務範圍，並更好地服務最終用戶。這是透過我們的服務供應商客戶從雲端提供者獲得間接收入的一個例子。顯然，Ciena 憑藉其與全球雲端服務供應商的強大關係和市場地位，在引領此模式方面擁有獨特的優勢。

With all that in mind, I'd like to expand upon how we are investing to address these opportunities. And to start with, I would say that all of our TAM expansion efforts are deeply grounded in the competitive advantage we have with our optical technology. It is well established and recognize that our industry-leading optical technology has been the driving force and foundational reason behind our success in serving the long haul, subsea, metro, regional, and DCI. markets.

考慮到以上所有因素，我想進一步闡述我們如何投資以掌握這些機會。首先，我想說，我們所有拓展 TAM 的努力都深植於我們在光學技術方面所擁有的競爭優勢。眾所周知，我們領先業界的光學技術一直是我們在長途、海底、城域、區域和資料中心互連 (DCI) 市場取得成功的驅動力和根本原因。

We expect to continue to lead and take share in these markets with our best-in-class coherent technology. This includes the upcoming availability of WaveLogic 6, which will further extend our leadership in terms of performance, scale, and sustainability.

我們期望憑藉我們一流的相干技術，繼續在這些市場中保持領先地位並擴大市場份額。這其中包括即將推出的 WaveLogic 6，它將進一步鞏固我們在性能、規模和可持續性方面的領先地位。

In addition, as I noted, our optical technology is also increasingly applicable to high growth opportunities where we are investing for growth by expanding our addressable market in three principal key areas. These include number one, broadband access; and number two, metro routing, where both the high-capacity optical fiber connectivity we enabled, has become a foundational element of next generation edge and metro networks.

此外，正如我所指出的，我們的光學技術也越來越適用於高成長機遇，我們正在透過在三個主要關鍵領域擴大目標市場來投資成長。其中包括第一點，寬頻存取；第二點，城域路由，我們實現的高容量光纖連接已成為下一代邊緣網路和城域網路的基礎要素。

And number three, inside and around the data center. The superior performance of our foundational optical technologies in a variety of form factors can serve the cloud provider trend towards disaggregated consumption models in support of a fabric connections. In broadband access, we have the market leading XGS-PON solution, providing our customers with modularity and openness that they haven't enjoyed in previous generations of PON deployments. This cost-effective, flexible, and sustainable OLT solution can address residential, enterprise, and mobility use cases.

第三，資料中心內部及週邊地區。我們基礎光學技術在各種外形尺寸下的卓越效能，可以滿足雲端供應商向分散式消費模式發展的趨勢，從而支援網路互連。在寬頻存取方面，我們擁有市場領先的 XGS-PON 解決方案，為我們的客戶提供他們在以往幾代 PON 部署中從未享受過的模組化和開放性。這種經濟高效、靈活且永續的OLT解決方案可以滿足住宅、企業和行動應用場景的需求。

Looking further out, as we also expect to lead in 25GS-PON as it emerges next year. With prioritized customer investment in broadband access, fueled in part by massive public funding around the world, we estimate the 10G and above PON market will grow at a 55%-plus CAGR to approximately [$7 billion] by 2027.

展望未來，我們也期望在明年推出的 25GS-PON 領域保持領先地位。由於全球範圍內的大量公共資金推動了客戶對寬頻接入的優先投資，我們估計到 2027 年，10G 及以上 PON 市場將以 55% 以上的複合年增長率增長至約 70 億美元。

Secondly, converged IP and optical layers in the metro are now being used to reduce costs, simplify networks, and achieve new levels of scale to support AI. This is precisely what our coherent routing solution is designed to address with our purpose-built metro routers, including the 5000 and 8000 series platforms as well as our recently expanded WaveRouter family.

其次，城域網路中融合的 IP 層和光層現在正被用於降低成本、簡化網絡，並實現新的規模以支援人工智慧。這正是我們旨在透過專用城域路由器（包括 5000 和 8000 系列平台以及我們最近擴展的 WaveRouter 系列）來解決的一致性路由解決方案。

This solution offers our customers scaling choices, common next-generation [IP OS], integration with the world's best optics and photonics, and the market-leading multi-layer domain control to manage and fully converge these metro networks. We estimate the metro routing market specifically will grow at a 12% CAGR to nearly $5 billion by 2027.

該解決方案為我們的客戶提供擴展選擇、通用的下一代 [IP OS]、與世界一流的光學和光子學技術的集成，以及市場領先的多層域控制，以管理和完全融合這些城域網路。我們預計，到 2027 年，地鐵線路規劃市場將以 12% 的複合年增長率成長至近 50 億美元。

And finally, number three, in addition to our strength in data center interconnect, we see an expanding and incremental opportunity inside and around the data center that also leverages our optical technology leadership. As cloud providers continue to build massive data centers with high data rates to handle AI workloads, they are increasingly reaching power and space limitations. We believe that coherent technology and our high-speed interconnect solutions will ultimately better address the need for superior scale, power, and signal quality.

最後，第三點，除了我們在資料中心互連方面的優勢之外，我們還看到了資料中心內部和周圍不斷擴大和成長的機會，這也充分利用了我們在光纖技術領域的領先地位。隨著雲端服務供應商不斷建造資料速率極高的巨型資料中心來處理人工智慧工作負載，他們越來越面臨電力和太空方面的限制。我們相信，相干技術和我們的高速互連解決方案最終將更能滿足對卓越規模、功率和訊號品質的需求。

This is similar to what we saw in the WAN and while still early, we believe it is largely a function of time as to when a meaningful portion of inside and around the data center moves to these technologies. In fact, we already engage with several cloud customers and ecosystem partners in this area as a direct result of our leadership in coherent. And we expect these engagements to increase and intensify over time.

這與我們之前在廣域網路中看到的情況類似，雖然現在還處於早期階段，但我們認為，資料中心內部和周圍相當一部分何時會遷移到這些技術，很大程度上取決於時間。事實上，由於我們在一致性領域的領先地位，我們已經與該領域的幾家雲端客戶和生態系統合作夥伴進行了合作。我們預計這些互動會隨著時間的推移而增加和加強。

So in summary, we believe we are incredibly well positioned to continue growing our leadership in optical and are leveraging that technology as well as that deep relationships with both cloud and service providers to further expand our addressable market and deliver profitable long-term growth.

總而言之，我們相信我們擁有非常有利的地位，可以繼續鞏固我們在光纖領域的領先地位，並且正在利用這項技術以及與雲端服務和服務供應商的深厚關係，進一步擴大我們的目標市場，並實現長期盈利增長。

With that, I'll turn it over to Jim who will provide details on the quarter's results as well as our business outlook. Jim?

接下來，我將把發言權交給吉姆，他將詳細介紹本季的業績以及我們的業務展望。吉姆？

Thanks, Gary. Good morning, everyone. As Gary mentioned, we delivered solid fiscal second quarter financial results. Revenue in Q2 was $911 million. Adjusted gross margin was 43.5% within the range of expectations. Q2 adjusted operating expense was $334 million. With respect to profitability measures in Q2, we produced adjusted operating margin of 6.8%, adjusted net income of $39 million, and adjusted EPS of $0.27. In addition, we generated $59 million in cash from operations and adjusted EBITDA of $86 million.

謝謝你，加里。各位早安。正如 Gary 所說，我們第二財季的財務表現穩健。第二季營收為9.11億美元。調整後的毛利率為 43.5%，符合預期範圍。第二季調整後營運費用為3.34億美元。第二季獲利指標方面，我們實現了6.8%的調整後營業利益率、3,900萬美元的調整後淨利和0.27美元的調整後每股盈餘。此外，我們產生了5,900萬美元的經營活動現金流和8,600萬美元的調整後EBITDA。

We ended the quarter with approximately $1.4 billion in cash and investments. We repurchased approximately 1.1 million shares for $57 million during the quarter, and we continue to target share repurchase at $250 million total during the fiscal year.

本季末，我們擁有約14億美元的現金和投資。本季我們以 5,700 萬美元的價格回購了約 110 萬股股票，我們繼續設定本財年股票回購總額為 2.5 億美元的目標。

Turning to some portfolio highlights from the quarter. In optical, we added 20 new customers for WaveLogic 5 Extreme in Q2, bringing our total customer count to 209. To date, we've shipped more than 123,000 WaveLogic 5 E [machines]. Revenue in Q2 for our reconfigurable line system, or ROS platform, was up 12% year-over-year with seven new customers in the quarter. And separately from our momentum with the cloud providers that Gary talked about, we gained 18 new customers in the quarter for our WaveLogic 5 Nano 400ZR and ZR+ pluggables, including service providers who buy these plugs integrated into our optical systems and routers.

接下來介紹本季的一些投資組合亮點。在光學領域，我們在第二季新增了 20 位 WaveLogic 5 Extreme 客戶，使我們的客戶總數達到 209 位。截至目前，我們已售出超過 123,000 台 WaveLogic 5 E。[機器]第二季度，我們可重構生產線系統（ROS 平台）的營收年增 12%，本季新增 7 位客戶。除了 Gary 提到的我們與雲端供應商的合作勢頭之外，本季我們還獲得了 18 位 WaveLogic 5 Nano 400ZR 和 ZR+ 可插拔產品的新客戶，其中包括購買這些插頭並將其整合到我們的光纖系統和路由器中的服務供應商。

We are also seeing strong early traction with WaveLogic 6 Extreme, which remains on schedule to become generally available within a few months. With the industry's first and only 1.6 terabit solution, we are looking forward to a favorable competitive dynamic over an extended period, similar to what we experienced with WaveLogic 5 Extreme in which we were the exclusive solution in market for more than 18 months. In fact, we already have orders from 14 customers around the world for WaveLogic 6 Extreme.

我們也看到 WaveLogic 6 Extreme 目前也獲得了強勁的早期市場反響，該產品仍按計劃在幾個月內全面上市。憑藉業內首個也是唯一一個 1.6 太比特的解決方案，我們期待在較長一段時間內保持有利的競爭態勢，類似於 WaveLogic 5 Extreme 的情況，當時我們在市場上獨家銷售了 18 個月以上。事實上，我們已經收到來自全球 14 位客戶的 WaveLogic 6 Extreme 訂單。

In routing and switching, we continue to be well positioned to gain share with strong customer engagement and a growing portfolio of industry leading solutions. In broadband access, we have more than 50 customers globally for our PON solutions. These include Tier 1 service providers, major MSOs, the largest US rural broadband provider, as well as multiple regional Tier 2 and Tier 3 providers.

在路由和交換領域，憑藉強大的客戶互動和不斷增長的行業領先解決方案組合，我們繼續保持良好的市場地位，有望贏得更多市場份額。在寬頻存取領域，我們的 PON 解決方案在全球擁有超過 50 家客戶。其中包括一級服務提供者、主要MSO、美國最大的農村寬頻供應商，以及多家區域二級和三級提供者。

We also have more than 100 customers using our coherent routing solution. As Gary mentioned earlier, this solution leverages our optical leadership, including pluggables and is key to expanding our addressable market in the converged metro. This solution includes our WaveRouter family, which Verizon recently selected among other products in our portfolio to evolve its long-haul and metro networks.

我們還有超過 100 位客戶正在使用我們協調一致的路由解決方案。正如 Gary 先前提到的，該解決方案利用了我們在光纖領域的領先地位，包括可插拔設備，是擴大我們在融合都會圈可觸及市場的關鍵。該解決方案包括我們的 WaveRouter 系列產品，Verizon 最近從我們產品組合中的其他產品中選擇了該系列產品，以升級其長途和城域網路。

Other portfolio highlights from Q2 include another very good quarter for platform software and services with 23% revenue growth year over year. And our global services business grew 5% year over year and 6% sequentially, driven by another strong quarter for installation and deployment as we continue to help our service provider customers work through some of their near term challenges.

第二季度其他投資組合亮點包括平台軟體和服務業務又一個非常好的季度，營收年增 23%。我們的全球服務業務年增 5%，環比增長 6%，這主要得益於安裝和部署業務在本季度的強勁增長，我們繼續幫助我們的服務提供商客戶應對一些近期挑戰。

Turning now to guidance, we continue to believe that the fundamental demand drivers in our business are incredibly strong and the data generation and network traffic will continue to grow at very healthy rates for the foreseeable future. We are also seeing signs of improvement in the current environment. We can see this playing out in our hardware related orders, which have increased steadily in fiscal year '24 to date, and we expect to continue to increase.

現在談到業績展望，我們仍然相信，我們業務的基本需求驅動因素非常強勁，在可預見的未來，數據生成和網路流量將繼續以非常健康的速度成長。我們也看到當前環境出現了改善的跡象。這一點可以從我們的硬體相關訂單中看出，這些訂單在 2024 財年至今穩步增長，我們預計還會繼續增長。

Based on our pipeline and current projections, we believe that orders will increase meaningfully in Q3 and actually have the potential to meet or exceed our revenue during the quarter. However, in the near term, while we see signs of improvement, the recovery of service provider order patterns is still slower than initially expected as they continue to absorb and deploy large amounts of their inventory.

根據我們的專案儲備和目前的預測，我們相信第三季訂單量將大幅成長，並有可能在本季達到或超過我們的收入。然而，短期內，雖然我們看到了一些改善的跡象，但服務提供者訂單模式的恢復速度仍然比最初預期的要慢，因為他們仍在吸收和部署大量的庫存。

Based upon all of these dynamics, we now expect fiscal year '24 to be approximately $4 billion, which is at the low end of the range we previously provided. We continue to believe that our adjusted gross margin from fiscal year '24 will be in the mid 40%s range. With respect to OpEx for the fiscal year, we continue to expect it to average $340 million to $345 million per quarter for the full year. For the fiscal third quarter, we expect to deliver revenue in a range of $880 million to $960 million, adjusted gross margin in the low to mid 40%s range and adjusted operating expense of approximately $345 million.

基於所有這些因素，我們現在預計 2024 財年將約為 40 億美元，這處於我們先前給出的範圍的下限。我們仍然相信，從 2024 財年開始，我們的調整後毛利率將在 40% 左右。關於本財年的營運支出，我們仍然預計全年平均每季支出為 3.4 億美元至 3.45 億美元。對於本財年第三季度，我們預計營收將在 8.8 億美元至 9.6 億美元之間，調整後毛利率將在 40% 左右，調整後營運費用約為 3.45 億美元。

In summary, we feel great about our business today and the continued execution of our long term strategy. We have the world's leading optical technology to underpin our growth from a portfolio perspective. We have strong and expanding relationships with both service providers and cloud providers. That combination positions us incredibly well to help our customers address the rise in global data generation and AI driven bandwidth demand that is accelerating traffic growth across their networks.

總而言之，我們對目前的業務狀況以及長期策略的持續執行感到非常滿意。從產品組合的角度來看，我們擁有世界領先的光學技術來支撐我們的成長。我們與服務供應商和雲端服務供應商都建立了牢固且不斷發展的合作關係。這種組合使我們能夠更好地幫助客戶應對全球數據生成量的成長和人工智慧驅動的頻寬需求，從而加速其網路流量的成長。

With that, George, we'll now take questions from the sell-side analysts.

喬治，接下來我們將接受賣方分析師的提問。

(Operator Instructions)

（操作說明）

Tim Long, Barclays.

提姆朗，巴克萊銀行。

Thank you. Maybe if you could talk a little bit about kind of order book in the fiscal Q2. I'm not sure if you gave that. And then, it sounds like the telco continues to push out getting you to the lower end of the range, what confidence do you have that we'll see that in October or January? When do you think we'll start to really see and that telco business is fully recovering? Thank you.

謝謝。或許您可以稍微談談第二財季的訂單狀況。我不確定你是否給了。然後，聽起來這家電信公司還在繼續努力，力求讓用戶享受到更低端的價格，您有多大信心我們會在 10 月或 1 月看到這種情況發生？你認為我們什麼時候才能真正看到電信業務全面復甦？謝謝。

Yeah, I'll speak to the backlog, Tim. We ended the quarter at about $1.9 billion in backlog. And based on what we see for the rest of the year, we do think our backlog will be down a bit at the -- by the end of the year, maybe not in Q3, but by the end of the year, it will be down a bit. Probably not based on what we see now to as low as the long-term trend we had pre all of the COVID and supply chain situation.

是的，我會處理積壓的工作，提姆。本季末，我們的積壓訂單約為19億美元。根據我們對今年剩餘時間的觀察，我們認為到年底，我們的積壓訂單量會略有下降——也許不是在第三季度，但到年底，積壓訂單量會略有下降。根據我們目前所看到的，可能不會像新冠疫情和供應鏈危機爆發之前的長期趨勢那麼低。

So Tim, let me take the second part of that. What gives us confidence to it? First of all, we've seen sort of a steady increase in the first half in orders from service providers. We expect that to jump a little more in a little bit of a step function in Q3. As Jim said in his commentary, we expect meaningful order increases in Q3, primarily led by the cloud, but also we expect an improvement in the service provider piece.

那麼提姆，讓我來回答第二部分。我們為什麼對它有信心？首先，我們看到上半年來自服務提供者的訂單量呈現穩定成長的趨勢。我們預期第三季該指標將出現更大幅度的階躍式成長。正如吉姆在他的評論中所說，我們預計第三季訂單將大幅成長，主要由雲端運算帶動，但我們也預計服務提供者部分會有所改善。

And we're also seeing in awards, the pipeline, the whole activity level is increasing. And sort of just as importantly, I think to talk to your question, we're seeing the inventory levels come down and they are deploying, particularly in North America. We have good visibility into that. So I think as we get out of the year, I think you will -- you'll see service providers in a more balanced supply demand inventory situation as we come out of our fiscal year.

我們也看到，從獎項數量、項目儲備以及整體活動水準來看，都在不斷提高。更重要的是，我認為，就你的問題而言，我們看到庫存水準正在下降，而且他們正在部署，尤其是在北美。我們對此有很清晰的了解。所以我認為，隨著本財年的結束，你會看到服務提供者的供需庫存情況更加平衡。

Thank you.

謝謝。

Thanks, Tim.

謝謝你，提姆。

Karl Ackerman, BNP Paribas.

卡爾‧阿克曼，法國巴黎銀行。

Yes, thank you. Good morning. In your deck today, you highlighted an emerging opportunity for coherent pluggables, both inside and around the data center. For inside the data center, are you suggesting these would be used in 7 to 10 kilometer lengths? Or would there be shorter reach links also possible? And I have a follow-up.

是的，謝謝。早安.在今天的演講中，您重點介紹了資料中心內部和周圍連貫可插拔組件的新興機會。對於資料中心內部，您是建議使用這些線纜，長度為 7 到 10 公里嗎？或者，是否也可以使用距離更短的連結？我還有一個後續問題。

Hey, Karl, it's Scott, I think both opportunities are there. I think the more near one is the shorter kilometer reach links sort of around the data center, if you like. Think of it as a 2 to 10 kilometer type opportunity.

嘿，卡爾，我是斯科特，我認為這兩個機會都存在。我認為距離越近的鏈路是指資料中心周圍距離較短的公里級鏈路。把它看作是一個2到10公里範圍內的機會。

I think second one that you mentioned is as the data rates between GPUs are increasing and because of the power usage and the restrictions on power forcing more distributed architectures in these GPU clusters, the lengths of the links that need to get communicated. Those coherent technologies in our belief are going to start to make their way inside sort of more of the traditional clusters.

我認為你提到的第二個原因是，隨著 GPU 之間的資料速率不斷提高，由於功耗和電源限制迫使這些 GPU 叢集採用更分散式的架構，需要通訊的連結長度也隨之增加。我們相信，這些相干的技術將會開始逐漸融入更傳統的產業群聚中。

That's a longer-term opportunity. But our position of strength from a coherent technology is pulling us into many of those dialogues around future architectures, both with the end cloud customers, but also with ecosystem providers that service those customers.

這是一個更長遠的機會。但我們憑藉連貫的技術所擁有的優勢地位，正將我們拉入圍繞未來架構的許多對話中，不僅與最終的雲端客戶，也與服務這些客戶的生態系統供應商。

Very interesting and helpful. Thank you. For my follow-up, you indicated that orders -- you've already received orders for WaveLogic 6 E products, but do you expect WaveLogic 6 E and 6 Nano will be [GA] in the second half of this calendar year? And I guess as you address that, does a muted outlook for telecom impede in any way the near term demand uplift you see of these new products? Thank you.

非常有趣，也很有幫助。謝謝。關於我的後續問題，您提到已經收到了 WaveLogic 6 E 產品的訂單，但您預計 WaveLogic 6 E 和 6 Nano 會在今年下半年正式上市嗎？我想，當您談到這一點時，電信業的低迷前景是否會以任何方式阻礙您看到的這些新產品的近期需求成長？謝謝。

Yes. So first of all, you have -- to your timing question, yes, both the 6 E and 6 N will be in market generally available this year, this calendar year. We made the comment actually that we had multiple orders for 6 E. That's absolutely true. And it comes across both service provider and cloud segments. We also have awards as well for 6 N, not just 6 E.

是的。首先，關於你提出的時間問題，是的，6 E 和 6 N 都將在今年，也就是本日曆年內上市。我們確實說過我們收到了多份 6 E 的訂單。這完全屬實。它同時涉及服務提供者和雲端領域。我們不僅為 6 E 設立了獎項，也為 6 N 設立了獎項。

So to your question of does the service provider sort of get in the -- the service provider dynamics of inventory will not get in the way of the ramp on those technology, I would say not because the early movers in those tend to be the folks that are most -- have the highest bandwidth demand growth and have the tightest constraint on their fibers. So think of the web scalers, think of the MOFN networks that are serving those web scalers, and think of submarine networks.

所以對於你提出的服務提供者是否會介入——服務提供者的庫存動態是否會阻礙這些技術的普及，我認為不會，因為這些技術的先行者往往是那些頻寬需求成長最快、光纖資源限制最嚴格的公司。所以想想網路擴展器，想想為這些網路擴展器提供服務的 MOFN 網絡，再想想潛水艇網絡。

Very helpful. Thank you.

很有幫助。謝謝。

Thanks, Karl.

謝謝你，卡爾。

Tal Liani, Bank of America.

塔爾·利亞尼，美國銀行。

Hi, guys. My question is about the non-service provider. Two questions. First, cloud went down from 33% to 25% of this non-cloud portion. And I'm trying -- I want to understand what is driving the trends right now in the cloud, meaning they're investing heavily inside the data center, doesn't it translate into more traffic outside that requires your solutions? And if that's the case, it means that they had tons of inventory before. So where are we on the absorption of cloud inventories?

嗨，大家好。我的問題是關於非服務提供者的。兩個問題。首先，雲在非雲部分中所佔的比例從 33% 下降到 25%。我正在努力了解目前雲端運算的發展趨勢，也就是說，他們在資料中心內部投入巨資，這難道不會轉化為更多外部流量，從而需要你們的解決方案嗎？如果真是那樣的話，那就意味著他們之前有很多庫存。那麼，我們在吸收雲庫存方面進展如何？

The second question is about the government and enterprise; this portion is growing. And can you talk about trends there? What's driving it et cetera? Thanks.

第二個問題與政府和企業有關；這部分內容不斷增加。能談談那邊的發展趨勢嗎？是什麼因素驅動了它等等？謝謝。

Okay. Let me take the first part of that, on the cloud, Tal. You if you look at what we've done in the cloud space, we were up 50% -- 57% last year. If you look at the first half of this year we're up 14%. Revenues were down slightly in Q2. That's just normal sort of ebbs and flows, frankly. And the order flows we expect in Q3 and we're seeing in Q4, we expect both orders and revenue to increase in the second half of the year.

好的。讓我先從雲端說起，Tal。如果你看看我們在雲端運算領域的成就，去年我們成長了 50% 到 57%。如果看今年上半年，我們成長了 14%。第二季營收略有下降。坦白說，這只是正常的起伏波動而已。我們預計第三季和第四季的訂單量將有所成長，因此我們預計下半年訂單量和收入都將增加。

The other thing I would say about it is, yes, they're investing heavily inside the data center right now. And their cloud business is growing as witnessed by those numbers that I just gave you. That's really before all of the AI stuff hits and comes out of the data center. That's really all in front of us.

關於這一點，我還想說的是，是的，他們目前正在對資料中心進行大量投資。正如我剛才提到的那些數字所證明的那樣，他們的雲端業務正在成長。那還是在所有人工智慧技術應用到資料中心並最終實現之前的情況。這就是擺在我們面前的全部了。

We are now seeing specific plans and engagements around network deployments in the second half and moving into early '25 to deal with what they expect to be an increase in AI traffic as well. So I think we're very positive around the whole cloud space. And if you look at the first half, we took market share. Even though we have a very high market share in cloud, and we're very specific about this. We took market share in the first half.

我們現在看到一些具體的計劃和舉措，涉及下半年以及 2025 年初的網路部署，以應對他們預計的 AI 流量成長。所以我認為我們對整個雲端運算領域都非常樂觀。如果你看一下上半年，我們會發現我們已經獲得了市場份額。儘管我們在雲端運算領域擁有非常高的市場份額，而且我們對此非常重視。我們在上半年搶佔了市場份額。

And that's before you've got WaveLogic 6 coming online, which has a massive technology advantage. You heard us talk about the orders. Just in the last couple of quarters, you've got multiple strategic awards for our 400-gig ZR+ and we talked about the new 800-gig ZR+ as well, which is obviously for WaveLogic Nano.

而且這還沒算上即將上線的 WaveLogic 6，它有著巨大的技術優勢。你聽到了我們談論訂單的事情。就在最近幾個季度，我們的 400G ZR+ 獲得了多項戰略獎項，我們也談到了新的 800G ZR+，這顯然是為 WaveLogic Nano 設計的。

So -- and that's an incremental market opportunity for us, as Scott was just saying around the short reach WAN and then eventually into the actual data center itself.

所以——正如 Scott 剛才所說，這對我們來說是一個不斷成長的市場機會，圍繞著短距離廣域網，最終進入實際的資料中心本身。

On the government and enterprise, Tal, we are showing a growth in that sector, particularly on the government side. We were up last year, 23%. Year to date, we're up about 6%. We see a lot of opportunity, particularly on the government side, and we're pushing hard to make sure we have the portfolio, the products, services, and software, [the] government's demands which are increasing.

塔爾，在政府和企業方面，我們看到該領域正在成長，尤其是在政府方面。去年我們成長了23%。今年迄今為止，我們上漲了約 6%。我們看到了許多機會，尤其是在政府方面，我們正在努力確保我們擁有滿足政府不斷增長的需求的產品組合、產品、服務和軟體。

Great. Thank you.

偉大的。謝謝。

Thanks, Tal.

謝謝，塔爾。

Ruben Roy, Stifel.

魯本·羅伊，斯蒂費爾。

Yes, thank you. Gary, I wanted to double-click a bit on some of the commentary you had on investing to address some of the opportunities and especially around the cloud service providers. One of the things that's coming up more recently at OFC and other events is, it seems like there's a demand for customized architectures and that type of thing. So wondering as you think about those types of investments, are you thinking about disaggregating some of your market leading technologies, i.e., DSPs or optical front ends, et cetera?

是的，謝謝。Gary，我想就你之前關於投資的一些評論再補充一點，探討一下其中的一些機會，特別是關於雲端服務提供者方面的機會。最近在OFC和其他賽事中出現的一個問題是，似乎對定制架構之類的東西有需求。所以，在考慮這類投資時，您是否考慮過拆分一些市場領先的技術，例如 DSP 或光前端等？

Yeah. Let me take the first part of that. Scott, anything to add to it. The answer to your question is, absolutely. And we've been engaged with these guys for a while. When you -- and if you think about it, we're an obvious choice for that given our leading coherent technology. And, however they want to consume that, be it in pluggable form, or be it in more discrete component form, it basically increases the velocity of our existing investments. There are things that we need to do. We believe, to make that applicable into that space. But that is all additional incremental market for us. I mean, we have zero market share and zero revenues from inside the data center right now.

是的。讓我來回答第一部分。史考特，還有什麼要補充的嗎？你的問題的答案是肯定的。我們和這些人已經接觸一段時間了。當你——如果你仔細想想，鑑於我們領先的相干技術，我們顯然是你的不二之選。無論他們想以何種方式消費，無論是插拔式還是更獨立的組件式，它基本上都能加快我們現有投資的轉換速度。有些事情我們必須要做。我們相信，這可以應用在那個領域。但對我們來說，這些都是額外的增量市場。我的意思是，目前我們在資料中心方面沒有任何市場份額和收入。

And so we are increasingly engaged. And given the depth of our relationship with these folks, we believe we're very well placed to benefit from that. And particularly as you see the GPU intensity of the AI buildout, that is increasing data rates and increasing distances, which really plays into what we think will be an intersect point with coherent technology.

因此，我們越來越積極地參與其中。鑑於我們與這些人之間深厚的關係，我們相信我們完全有能力從中受益。尤其當你看到人工智慧建構過程中 GPU 的密集程度，也就是不斷提高的資料速率和不斷增加的距離，這確實與我們所認為的將與連貫技術的交會點密切相關。

Yeah, when we talked about the opportunity of the coherent coming to solve some of the problems inside the data center, we're very cognizant of the fact that, inside the data centers the key players there, whether they be end cloud consumers themselves or other ecosystem players that play there, are have really grown up in a disaggregated model with consuming technology. We're very aware of that and we're taking steps to make sure that we are ready to play there and absolutely are willing to play there. That's just the way it's going to get consumed.

是的，當我們談到協同技術有機會解決資料中心內部的一些問題時，我們非常清楚，資料中心內部的關鍵參與者，無論是最終的雲端用戶本身，還是參與其中的其他生態系統參與者，實際上都是在分散的技術消費模式下發展起來的。我們非常清楚這一點，我們正在採取措施確保我們做好在那裡比賽的準備，而且我們絕對願意在那裡比賽。它最終的消費方式就是這樣。

That's great. Thank you. Just a quick follow-up. It's great to see the very broader deployments at Verizon. Can you maybe just talk about conversations you're having with either other service providers in North America or elsewhere or cloud service providers on that product specifically?

那太棒了。謝謝。再補充一點。很高興看到Verizon如此大規模的部署。您能否談談您與北美或其他地區的其他服務提供者或雲端服務提供者就該產品進行的對話？

Yeah, we think if we take a bit of a step back, WaveRouter is one of the products in a family of products that we call our coherent [running] portfolio. And what we're seeing is as service providers think about their sustainable role in the world going forward, their metro and access connectivity is really important to them. And they're looking at what they're going to have to be able to deliver in terms of high capacity, low latency type networks. And that is, again playing into the strength of optics is a more and more important part of it.

是的，我們認為，如果我們稍微退後一步，WaveRouter 是我們稱之為連貫[運行]產品組合的一系列產品中的一款。我們看到，隨著服務提供者思考他們在未來世界中的永續發展角色，他們的城域網路和接取連線對他們來說真的非常重要。他們正在研究為了提供高容量、低延遲類型的網絡，他們需要哪些條件。也就是說，利用視覺效果在其中扮演越來越重要的角色。

So we've built a family of purpose-built routers that is designed to go after that in an optimized way, WaveRouter being the biggest part of that -- the biggest, the big brother of that family, if you like.

因此，我們打造了一系列專用路由器，旨在以優化的方式實現這一目標，而 WaveRouter 是其中最重要的部分——如果你願意的話，它是這個系列中最大的、老大哥。

If you take more broader from a coherent router perspective in the family, our 5000 series, 8000 series and WaveRouter, we've got over 100 customers worldwide deploying that today and they're buying into the footprint optimization that you get on the purpose-built router they're buying into the world-class optics. And they're also very importantly buying into the multi-layer domain control that really allows them to enable convergence in their network. So that's where we're seeing the traction.

如果從整個路由器系列的更廣泛角度來看，我們的 5000 系列、8000 系列和 WaveRouter 目前在全球擁有超過 100 家客戶，他們購買的是專用路由器所提供的空間優化，以及世界一流的光學元件。而且非常重要的一點是，他們也接受了多層域控制，這實際上使他們能夠在網路中實現整合。所以，這就是我們看到進展的地方。

A lots of -- WaveRouter itself is actually the redundant chassis version of that. So where people are deeper in their network and they have high capacity [and] redundancy, that's where they land on WaveRouter as part of that broader stores.

很多——WaveRouter 本身實際上是它的冗餘機箱版本。因此，當人們的網路深度足夠，容量和冗餘度較高時，他們就會選擇 WaveRouter 作為更廣泛應用的一部分。

Thank you.

謝謝。

George Notter, Jefferies.

喬治諾特，傑富瑞集團。

Hi, guys. Thanks very much. Just a couple of modeling questions. I was looking at the DSO number, I think was 98 in the quarter. That's up 10 days sequentially. Was there something going on this quarter with linearity or collections? What can you say there?

嗨，大家好。非常感謝。幾個建模問題。我當時在看應收帳款週轉天數（DSO），我記得這個季度是98。這比上一天連續上升了10天。本季在產品線或系列方面是否發生了什麼事？你還能說什麼呢？

And then also wanted to ask about inventories. Your inventories were up sequentially. I know that you guys said previously you don't expect them to go down that rapidly this year, but I guess I was a bit surprised to see inventories go up sequentially, so any insights there would be great. Thanks.

然後還想詢問一下庫存狀況。您的庫存環比增長。我知道你們之前說過預計今年庫存不會下降得那麼快，但我還是有點驚訝地看到庫存環比上升，所以如果你們能提供一些見解就太好了。謝謝。

Yeah, we still expect, George, that by the end of the year, our inventory will be down from the end of last year by a couple of hundred million dollars. There are some movements through the year based on what customers are doing and what our vendors are doing. But we think that by the end of the year, we'll be up $200 million or so, below where we were at the end of last year.

是的，喬治，我們仍然預計，到今年年底，我們的庫存將比去年年底減少數億美元。根據客戶和供應商的行為，一年中會出現一些波動。但我們認為，到今年年底，我們的收入將比去年年底減少約 2 億美元。

And the first part of your question was --?

你問題的第一部分是——？

The linearity question.

線性問題。

Yeah, I don't think you should read a lot into that. We actually have large customers who pay large amounts at certain times and we were lucky enough in Q1 to get a -- end of quarter amount paid that brought our DSOs down. My guess is our DSOs are going to be in a range of 93 to 96 or so for the year. It's a little higher than that now, but will be 93 to 96, my guess.

是的，我覺得你不應該對此過度解讀。我們確實有一些大客戶會在某些時候支付大筆款項，而且我們很幸運，在第一季末收到了一筆款項，這降低了我們的應收帳款週轉天數 (DSO)。我估計我們今年的DSO（應收帳款週轉天數）會在93到96左右。現在比那略高一些，但我估計會達到 93 到 96。

Fair enough. Thank you very much.

很公平。非常感謝。

Amit Daryanani, Evercore ISI Institutional Equities.

Amit Daryanani，Evercore ISI Institutional Equities。

Good morning and thanks for taking my question. I've two as well. I guess maybe the first one is, when I think about your back half guide on the question that folks seem to be kind of struggling with is, you're sort of implying 20%-plus sequential growth in the October quarter at this point, [to hit the $4 billion] number, that seems to be a very steep acceleration given kind of what you're seeing so far in the year. So I'd love to just understand what's underpinning from a vertical basis, maybe that the sizable acceleration that you expect in October quarter right now?

早上好，感謝您回答我的問題。我也有兩個。我想第一個問題是，當我想到你下半年的業績指南時，大家似乎有點困惑的問題是，你暗示10月份的季度環比增長將超過20%，達到40億美元的目標，考慮到今年到目前為止的情況，這似乎是一個非常陡峭的加速增長。所以我很想從根本上了解背後的原因，例如您目前預期的十月份季度的大幅加速成長？

Yes. No, that's a very fair question, Amit. I'd answer it in a number of ways, what gives us confidence around that. First of all, we're seeing incremental improvement on service providers, not what we'd anticipated coming into the year, but we're clearly seeing incremental improvement in terms of orders, pipeline activity, et cetera.

是的。不，阿米特，你問得非常好。我會從多個方面來回答這個問題，是什麼讓我們對此充滿信心？首先，我們看到服務提供者的情況有所改善，雖然沒有達到我們年初的預期，但我們在訂單、管道活動等方面明顯看到了改善。

Secondly, we still have a very large backlog. And that also gives us some confidence around our Q4 step-up for the year. And the other thing I would say is we're seeing strong cloud provider engagement as well. Even though we're up 14% already, we expect a very strong second half from the cloud providers as well. So incremental improvements on the service providers. And we've got good visibility, particularly in North America to them -- deploying their inventory that they've got. And we've got -- we're seeing good progress on that. So I think you put all of those together, and that's what gives us confidence in Q4.

其次，我們仍然積壓了大量工作。這也讓我們對今年第四季業績的成長充滿信心。另外，我還想說的是，我們也看到了雲端服務供應商的積極參與。儘管我們已經上漲了 14%，但我們預計雲端服務供應商下半年也會有非常強勁的表現。因此，服務提供者需要逐步改進。我們對他們，特別是北美地區的客戶，有著良好的了解——他們正在部署他們現有的庫存。而且我們已經——我們看到這方面取得了良好進展。所以我認為，把所有這些因素綜合起來，就足以讓我們對第四季充滿信心。

Perfect. That's really helpful. And then Garry, you sound a lot more -- you sound incrementally more positive on the AI opportunity and how does that ramp up for you folks over the next couple of years? I'm wondering, given everything that you've highlighted so far, does that alter your view of the long-term growth range for Ciena as we go forward? And when do you think some of these opportunities will start to show up on your revenue stream? Thank you.

完美的。這真的很有幫助。加里，聽起來你對人工智慧的機會越來越樂觀，那麼在接下來的幾年裡，你們又如何看待人工智慧的發展前景呢？鑑於您目前所強調的所有內容，我想知道，隨著我們不斷深入，這是否會改變您對 Ciena 長期增長範圍的看法？你認為這些機會何時會開始體現在你的收入來源？謝謝。

Yeah. I mean, I think the question's always been in our space. We see all the activity inside the data center and logic would say that at some point to monetize that has to come out. And I think we've all been collectively looking at that. I think we're beginning to see the signs of that right now. I mean, AI traffic is being obviously, things like the current models are being put out there, but the traffic flows are then blended with cloud, and it's difficult to see whether that's driving it or just the cloud expansion.

是的。我的意思是，我認為這個問題一直存在於我們的領域。我們看到了資料中心內部的所有活動，從邏輯上講，為了實現盈利，這些活動遲早都要公開出來。我認為我們一直在共同關注這個問題。我認為我們現在已經開始看到這種跡象了。我的意思是，人工智慧流量顯然正在發展，例如目前的模型正在被推出，但是流量隨後與雲端運算融合在一起，很難看出是雲端運算的擴張還是人工智慧的擴張在推動流量成長。

We are now beginning to see specific engagements with the cloud players around provisioning for AI traffic as we get through next year. So that is informing us sort of an improved confidence around that impacting it. Then as we've talked a little bit about inside the data center, that's a little more, obviously, more nascent opportunity for us, we are excited by the disaggregation opportunity, which is all incremental to us there as well.

隨著我們進入明年，我們開始看到雲端服務供應商圍繞人工智慧流量的配置展開具體的合作。所以，這顯示我們對它產生的影響更有信心。然後，正如我們剛才稍微談到的資料中心內部，這顯然對我們來說是一個更新興的機會，我們對解耦的機會感到興奮，這對我們來說也是一個漸進的過程。

So you put all of that lot together and there's a reasonable question, our 6% to 8% that we put out there is basically what we can see right now from the TAM opportunities that we're driving. Could that improve or better way of putting it, should that improve over the next three years? The answer is probably yes, but really the 6% to 8% is just what we can see right now and have a visibility to. That could obviously increases the AI traffic flows into the both the cloud and the service provider networks, particularly in broadband.

所以，把所有這些因素綜合起來，就會產生一個合理的問題：我們公佈的 6% 到 8% 的成長率，基本上就是我們目前從我們正在推動的 TAM 機會中看到的結果。未來三年內，這種情況能否改善？或者更確切地說，是否應該改善？答案很可能是肯定的，但實際上，6%到8%只是我們目前能夠看到和預見的數值。這顯然會增加流入雲端和服務供應商網路的 AI 流量，尤其是在寬頻網路方面。

And you have to remember that our core optical business is -- it grows at only about 2% or 3%. And even in that business, we've been able to do very well and take share. But the core of our business is not growing at a rapid rate. It will depend upon all the things that Gary spoke about as well as routing and switching to get to the higher growth rates we're calling and hopefully they'll go up from.

你必須記住，我們的核心光學業務——它的成長率只有 2% 或 3%。即使在那個行業，我們也做得非常好，並佔據了一定的市場份額。但我們業務的核心部分並沒有快速成長。這將取決於 Gary 所談到的所有因素，以及路由和交換，以實現我們所說的更高成長率，希望成長率能繼續上升。

If you look at the TAM, in aggregate, the three main areas of the TAM, it blends at over 30% CAGR. So we're hopeful that that will impact our 6% to 8% over time.

從整體來看，TAM 的三個主要領域加起來的複合年增長率超過 30%。所以我們希望隨著時間的推移，這能對我們的6%到8%的成長率產生影響。

Thank you.

謝謝。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

Thanks for taking the question. I wanted to first ask about the concentration of your cloud customers because I guess the lumpiness that you've called out should have been expected. You had two really big customers in your October and January quarters. What I'm looking for is an understanding of how you expect the concentration within cloud evolves. Do you expect others to get more significant beyond the two that have been the major drivers of your direct to cloud revenue?

感謝您回答這個問題。我想先問一下你們雲端客戶的集中度，因為我想你們提到的這種不均衡現象應該是可以預期的。你們在十月和一月季度分別迎來了兩位大客戶。我想了解的是，您認為雲層內的濃度會如何演變。除了目前直接面向雲端的收入主要驅動因素中的兩個之外，您是否預期其他因素會變得更加重要？

And then I've got a quick follow-up, I'll come back with them.

然後我還有一些後續問題，我稍後會帶回來。

I would say, obviously that, there are four large network deployed cloud players that we're all aware of. I think we are employed with all four. And you're going to get ebbs and flows between each of them as you go through that. I think it's fair to say we're expanding our relationship with all four of those, both in terms of new applications, you saw all the pluggable announcements in the last couple of quarters and that's a market really in this, short of connectivity, DCI connected, where we really don't have a lot of market share.

很顯然，我們都知道有四家大型網路部署雲端服務供應商。我認為我們四個人都受僱於我們。在這個過程中，你會感受到它們之間的起伏波動。我認為可以公平地說，我們正在擴大與這四家公司的關係，無論是在新應用方面，還是在連接方面。在過去的幾個季度裡，你們都看到了所有可插拔的公告，這確實是一個市場，除了連接性之外，DCI 連接，我們在這個市場中的市場份額並不大。

So that's all incremental market share for us. So you've seen an expansion of that in addition to submarine, in addition to the MOFN stuff that I talked about around the world with service providers. So you can see our relationship with those four are getting deeper and they're broadening out. And that's before we have the opportunity inside the data center as well.

所以，這些都只是我們新增的市佔率。所以，除了潛水艇之外，你還看到了這種擴展，以及我之前與世界各地的服務提供者談論的 MOFN 相關內容。所以你可以看出我們與這四個人的關係越來越深厚，關係也不斷擴大。而且這還沒算上我們進入資料中心內部的機會。

Now in addition to that, we did announce a pluggable win with a new cloud provider that is not in those four. So you are seeing other cloud providers, not in the big-four come through globally, and we're engaged with most of those as well. So, the overall opportunity market is getting bigger and we're increasing our market share in that space because of the multiple applications that we've got. And that's before we start to deliver WaveLogic 6.

除此之外，我們也宣布與一家不在上述四家之列的新雲端供應商達成了可插拔協議的合作。所以你會看到其他雲端服務供應商（並非四大巨頭）在全球範圍內湧現，我們也與其中大多數供應商保持合作關係。因此，整體市場機會正在擴大，由於我們擁有多種應用，我們在該領域的市場份額也在不斷增長。而這只是在我們開始交付 WaveLogic 6 之前的情況。

Thanks. And then the follow-up and maybe this is for Scott, is that the ZR market is thought of as a revenue headwind. I presume ZR+ would be somewhat different because that's a product or a technology that's not necessarily a standard and provides much better performance than the ZRs. Can you talk about how ZR+ affects your assumptions and the market overall? Thank you.

謝謝。接下來，也許這是給 Scott 的，ZR 市場被認為是收入的阻力。我推測 ZR+ 會有所不同，因為它是一種不一定是標準的產品或技術，並且比 ZR 系列提供了更好的性能。您能否談談 ZR+ 如何影響您的假設和整個市場？謝謝。

That's a couple of points. Back on your last comments, just a reminder that the four big ones that Gary talked about, all four of those are in our top 10 customer base. So there's distribution there. And then there's the next year includes logos that you would recognize as well as just say, non-North American cloud providers that are moving outside their national territory, if you like, and looking for western suppliers to provide that as well.

這是兩點。回到您上次的評論，提醒一下，Gary 提到的四大客戶，都是我們前十名的客戶。所以那裡存在著分銷管道。接下來的一年裡，除了你熟悉的標誌之外，還有一些非北美雲端服務提供者正在向其本國領土以外的地方擴張，並尋找西方供應商來提供服務。

We get good business to begin with through open opportunities on them. And as they get bigger, they start to build their infrastructure. And the reference that we had on our 400-gig ZR win this quarter was one of those logos. So we start to see them sort of growing up, if you like and becoming a bigger part of the industry. And we're benefiting from that.

我們首先透過這些平台上的開放機會獲得良好的業務。隨著規模的擴大，它們開始建造基礎設施。而我們本季贏得 400G ZR 專案的參考資料就是其中一個標誌。所以我們開始看到他們逐漸成長，成為業界越來越重要的一部分。而我們從中受益匪淺。

To your question on the dynamics of 400-gig ZR and evolution to 800-gig ZR and ZR+, I guess just would, from our perspective, sort of have a different have a -- different view of the 400-gig ZR being a headwind because if you look at where we actually participate, even though we have a massive market share position with the web scalers on all things transport, we don't really participate with them today on their campus metro DCI. So for us, we look at that as a net opportunity and a tailwind, whether it be at the current generation 400-gig ZR, whether WaveLogic 5 Nano or next generation.

關於您提出的 400G ZR 的動態以及向 800G ZR 和 ZR+ 演進的問題，我想從我們的角度來看，我們對 400G ZR 是否構成阻力會有不同的看法，因為如果您看看我們實際參與的領域，儘管我們在所有傳輸相關的網絡擴展領域都擁有巨大的市場份額，但我們目前並沒有真正參與的市場區。因此，對我們來說，這既是一個淨機會，也是一個順風，無論是當前的 400G ZR 世代，還是 WaveLogic 5 Nano 世代，也是下一代。

And then you're right as we move to next generation, what's happening is because of the power constraints and this sheer demand for compute, these data centers are getting pushed farther and farther apart. Geographical distribution is happening. Performance starts to matter again. So we're not designing to the least common denominator of a 400-gig ZR; performance matters. And I think that moves to our strengths as a technology provider.

然後你說的沒錯，隨著我們邁向下一代，由於電力限制和對運算的巨大需求，這些資料中心之間的距離越來越遠。地理分佈正在發生。表現再次變得重要。所以我們並沒有以 400GB ZR 的最低標準來設計；效能才是最重要的。我認為這體現了我們作為技術提供者的優勢。

Thank you.

謝謝。

Samik Chatterjee, JPMorgan.

Samik Chatterjee，摩根大通。

Hi, thanks for taking my question. You're sounding a lot more positive in terms of the opportunity with telecom service providers with bandwidth growth as well as AI that you talked about. However, I mean another way that investors I think are also looking at it is, when we look at your telco revenue like from 2019 every year, 2019-2020 till like even 2024 the run rate you are at, it's been largely sort of in this [2.1 billion, 2.2 billion] range pretty consistently. And when we think about sort of pluggable, et cetera, it seems like the telcos have found a way to sort of drive the overall spend that they do despite the increase in bandwidth towards sort of very consistent level.

您好，感謝您回答我的問題。你對電信服務供應商在頻寬成長和人工智慧方面所面臨的機遇，聽起來更加樂觀了。不過，我認為投資人也從另一個角度來看這個問題，那就是，當我們觀察你們的電信收入時，從 2019 年到 2024 年，你們的年化收入一直基本上穩定在這個區間內（21 億，22 億）。當我們考慮可插拔等技術時，電信公司似乎已經找到了一種方法，儘管頻寬不斷增加，但仍然能夠將整體支出維持在一個非常穩定的水平。

When you think about the drivers that you called out, how do you think about breaking out of that range in terms of what the telcos have spent? Are the telcos really willing to spend or are they going to look at other ways, including like pluggable us to keep that spend to that sort of similar level? That's largely, I would say the concern in terms of even as we sort of think about these broader sort of bandwidth expiration trends. This telcos haven't really shown their appetite to spend more over time. Can you just share your thoughts on that please and I have a follow up?

當你思考你提到的那些驅動因素時，你認為電信公司在支出方面如何突破這個範圍？電信公司真的願意投入資金嗎？還是他們會考慮其他方法，例如採用可插拔技術，將支出維持在類似的水平？就我們思考更廣泛的頻寬到期趨勢而言，這在很大程度上就是我們擔憂的問題。這些電信公司並沒有真正表現出隨著時間的推移而增加投入的意願。您能否分享一下您對此的看法？我還有一些後續問題。

Let me start to answer that Samik, and I think there are a lot of different dimensions to this question. But the first thing I would say is that we've gone through a very unusual period in the industry. Starting in 2020 with COVID then followed by the supply chain dynamics and the swinging of the pendulum back and forth. And so my own view is that the recent trends -- the recent actual spends on the part of service providers are not reflective of a long-term trend. The other thing that's happened during this period is that service providers have spent a large amount of money on building out their 5G networks. So all of that is wireless here in which we don't participate.

薩米克，讓我來回答這個問題，我認為這個問題有很多不同的層面。但我想說的第一點是，我們經歷了一段非常不尋常的行業時期。2020 年新冠疫情爆發，隨後是供應鏈動態變化以及市場鐘擺的來回擺動。因此，我個人認為，近期的趨勢——服務提供者近期的實際支出——並不能反映長期趨勢。在此期間發生的另一件事是，服務提供者投入了大量資金來建立其 5G 網路。所以這裡所有的無線連線都是我們不參與的。

It's our view that it's not going to be a highly -- rapidly growing business. But we do think that over time, service providers will start to spend again, particularly on optical. Every indication that we see is that demand on their networks is growing at least on their wired networks, and they're going to have to spend to build that out. In the near term, as we said on the MOFN side, they're getting that opportunity from the of GCNs.

我們認為這不會是一個快速成長的業務。但我們認為，隨著時間的推移，服務提供者將會再次開始支出，尤其是在光纖領域。我們看到的種種跡象表明，至少在有線網路方面，他們的網路需求正在成長，他們將不得不花錢來建立網路。短期來看，正如我們在 MOFN 方面所說，他們正從 GCN 中獲得這樣的機會。

And we've said in the past. This is in areas where the GCNs actually are regulated and prevented from owning fiber and owning the networks, but even in places where they can own their own networks, they want to get enough gear out there more quickly than they can do themselves. And so they're entering into MOFN arrangements with service providers in the US and other parts of the world. So we don't think that the near term actuals reflect long-term trends. We think the service providers are going to be just fine.

我們過去也說過。在某些地區，GCN 實際上受到監管，被禁止擁有光纖和網絡，但即使在他們可以擁有自己網絡的地方，他們也希望比自己更快地部署足夠的設備。因此，他們正與美國和世界其他地區的服務提供者簽訂 MOFN 協議。因此，我們認為近期實際情況並不能反映長期趨勢。我們認為服務提供者應該不會有問題。

The other thing I would sort of add to that is you've got traffic growth and you've got, as Jim said, MOFN cloud driving that. We're also winning share. We have leading technology in this space, leading relationships and we're winning share in there. We're also -- our TAM expansion -- some of that TAM expansions in terms of, convergence of metro, routing, et cetera, means that we're going to take share in those new emerging markets as well.

我還要補充一點，流量成長是主要原因，正如 Jim 所說，MOFN 雲端正在推動這一成長。我們也在贏得市場佔有率。我們在該領域擁有領先的技術、領先的人脈關係，並且正在贏得市場份額。我們也在進行 TAM 擴張——就城市、路線規劃等方面而言，TAM 的擴張意味著我們也將在那些新興市場中佔據份額。

So service providers is a challenging market for sure, but we believe it will grow in our space and they will absolutely need to spend and grow their wireline networks, as Jim said, for all the drivers that we know of. And that's before sort of a I really start. They're going to be responsible for delivering a lot of the broadband AI. And we're quite bullish on that broadband space. So we think that we are going to get to a more normalized state with service providers as we get through to next year from an inventory balance point of view. And we are incredibly well positioned to take advantage of that in addition to our confidence in the cloud relationships.

因此，服務提供者市場肯定是一個充滿挑戰的市場，但我們相信它將在我們的領域發展壯大，而且正如吉姆所說，出於我們所知道的所有原因，他們絕對需要投資並發展他們的有線電視網絡。而這還是在我真正開始之前。他們將負責交付大部分寬頻人工智慧產品。我們非常看好寬頻領域。因此，我們認為，從庫存平衡的角度來看，隨著我們進入明年，服務提供者的情況將會更加正常化。憑藉我們對雲端關係的信心，我們完全有能力利用這一點。

Got it. And if I can just do a quick follow up. Jim, you mentioned in your remarks that you're expecting orders in Q3 to be slightly above revenue potentially. Is that really what's embedded in the Q4 guide because my math would indicate that you're sort of implying a 50% increase in the orders from Q2 to then sort of drive to that order level in Q3. Am I doing the -- am I getting it in the ballpark in terms of what's embedded in the revenue recovery in Q4?

知道了。我能再簡單跟進一下嗎？吉姆，你在演講中提到，你預計第三季的訂單量可能會略高於收入。第四季業績指引中真的包含了這些內容嗎？因為我的計算表明，你們似乎暗示訂單量比第二季度增長 50%，然後在第三季度達到相同的訂單水平。我這樣做－我這樣估算是否大致符合第四季營收復甦的預期？

[You're in] the ballpark, we do expect a meaningful increase in orders in Q3 based on everything we see now and if things fall right, we could approach what we expect to deliver for revenue in the quarter. Whether we get there or not, we're going to be close to what we delivered in revenue in Q3. And that order pattern is what drives a lot of our confidence for Q4.

[你的估計]大致正確，根據我們目前看到的情況，我們預計第三季訂單量將大幅增長，如果一切順利，我們預計將在本季度實現預期的收入目標。無論我們能否實現目標，我們的營收將接近第三季的水平。而這個訂單模式正是我們對第四季充滿信心的主要原因。

And we're also -- I'd also point out we're carrying a big backlog so [stay] still.

而且我們也——我還想指出，我們積壓了很多工作，所以請保持安靜。

Ryan Koontz, Needham & Co.

Ryan Koontz，Needham & Co.

Great. Thanks for the question. Just circle back to some previous commentary around the 800 ZR impacts. Can you specify when you think the timing of that impacts to cloud business, which segments of cloud, you expect 800 ZR to impact in terms of DCI, metro, long-haul, subsea? Thanks.

偉大的。謝謝你的提問。讓我們回顧一下之前關於 800 ZR 撞擊的一些評論。您能否具體說明您認為 800 ZR 何時會對雲端業務產生影響，以及您預計它會對雲端的哪些細分領域產生影響，例如資料中心互連 (DCI)、城域網路、長途傳輸和海底光纜？謝謝。

Commercial, the availability of our product, Ryan, is going to be a late in the calendar year, this year. We wouldn't expect it to be a revenue impact for us until 2025 certification cycles. And obviously, there needs to be host platforms and whatnot that these parts will go into.

從商業角度來看，我們的產品 Ryan 的上市時間將在今年底。我們預計在 2025 年認證週期之前，不會對我們的收入產生影響。顯然，這些部件需要安裝到相應的主機平台等等上面。

The other thing (multiple speakers) --

還有一件事（多位發言者）——

Later in the year.

今年晚些時候。

Sorry, Ryan?

抱歉，瑞恩？

Yes, I think it will take a couple of quarters gone beyond availability for start to see any meaningful revenue.

是的，我認為在產品上市幾個季度後，才開始看到任何有意義的收入。

And just to be clear, Ryan, we still believe that the ultra-long haul, submarine, long-haul market is going to be a systems business, not pluggable business. And we think the WaveLogic 6 E is the one that's going to drive that and we'll be ahead of the market on that by good long time.

瑞安，我再說清楚一點，我們仍然認為超遠程、潛水艇、遠端市場將是一個系統業務，而不是一個可插拔業務。我們認為 WaveLogic 6 E 將引領這一趨勢，而且我們將在很長一段時間內領先市場。

It's great to here. And just shifting gears real quick on the broadband side, sounds like some decent momentum there. Can you maybe outline the different segments you are seeing success in terms of cable and Tier 2s and what your differentiation is, what the competitive environment is like there? Appreciate it. Thank you.

來到這裡真好。寬頻方面似乎發展勢頭良好，正在迅速轉型。您能否概述一下您在有線電視和二級市場取得成功的不同細分領域，以及您的差異化優勢是什麼，那裡的競爭環境如何？謝謝。謝謝。

Yes, Ryan. And just to remind folks on the call that with our play here is to intercept broadband PON at the next generation PON, 10-gig and above. We've got a vertically integrated solution on the OLT side with our Tibit acquisition. It's a modular solution that brings with the benefits of cost and footprint. And it's an open solution unlike sort of sort of pass technology. So that's the value proposition.

是的，瑞恩。再次提醒各位參加電話會議的朋友們，我們的目標是攔截下一代 PON（10G 及以上）寬頻 PON。透過收購 Tibit，我們在 OLT 方面實現了垂直整合的解決方案。它是一種模組化解決方案，具有成本低、佔地面積小的優點。而且它是一種開放式解決方案，不像某種傳球技術那樣封閉。這就是它的價值主張。

Resonating, I think we've got approaching 60 customers globally on that. It's across all the segments that you mentioned. So Tier 1 service providers, MSOs, large regional broadband providers, both US-based and internationally, and a number of Tier 2, Tier 3 broadband suppliers. The majority of those I'm mentioning are actually whole systems, but remind folks, we also sell the Tibit technology as an individual component in the marketplace through other OEMs as well.

反應很好，我認為我們在全球已經有近 60 位客戶對此表示贊同。你提到的所有領域都存在這種情況。因此，一級服務供應商、MSO、大型區域寬頻供應商（包括美國本土和國際的）以及一些二級、三級寬頻供應商。我提到的這些產品大多是完整的系統，但提醒大家，我們也透過其他 OEM 廠商將 Tibit 技術作為單獨的組件在市場上銷售。

Perfect. Thanks a lot, Scott.

完美的。非常感謝，斯科特。

Thank you, Ryan. And thanks, everyone, for joining us today, and we'll look forward to catching up with everyone later today and over the next days and weeks. Have a good day.

謝謝你，瑞恩。感謝各位今天收看，我們期待在今天晚些時候以及接下來的幾天和幾週內與大家再次見面交流。祝你有美好的一天。

Ladies and gentlemen, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

女士們、先生們，會議到此結束。感謝各位參加今天的報告會。您現在可以斷開連線了。