思科 (CSCO) 2006 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the first quarter fiscal year 2006 earnings conference call. [OPERATOR INSTRUCTIONS] It is now my pleasure to turn the floor over to your host,Tom Robey. Sir, the floor is yours.

女士們、先生們，下午好，歡迎參加 2006 財年第一季財報電話會議。[操作員指示] 現在我很高興將發言權交給主持人湯姆·羅比。先生，請您發言。

Good afternoon, everyone. On today's call, we will hear prepared comments from Jim McDonald, Chairman, President and CEO, Wally Haislip, Senior Vice President, Finance and Operations, Michael Harney. Senior Vice President and President of our Subscriber Networks business ,and Dwight Duke, Senior Vice President and President of our Transmission Network Systems business. Following their prepared remarks, Jim, Wally, Michael and Dwight, along with our CFO, Julian Eidson, and Executive Vice President, Allen Ecker, will be available to answer your questions.

大家下午好。在今天的電話會議上，我們將聽取董事長、總裁兼首席執行官吉姆·麥克唐納 (Jim McDonald)、沃利·海斯利普 (Wally Haislip)、財務和營運高級副總裁邁克爾·哈尼 (Michael Harney) 的準備好的評論。我們的用戶網路業務資深副總裁兼總裁，以及我們的傳輸網路系統業務資深副總裁兼總裁 Dwight Duke。在發表準備好的演講之後，Jim、Wally、Michael 和 Dwight，以及我們的財務長 Julian Eidson 和執行副總裁 Allen Ecker 將回答您的問題。

Before we begin our call, I will read the required cautionary statements. The financial results discussed on this conference call and discussed in the press release are unaudited. During this conference call, we are likely to discuss certain subjects that contain forward-looking statements. I caution you that any forward-looking statements made by the Company are not guarantees of future performance, and that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated or projected results, which the Company may discuss on this conference call.

在我們開始通話之前，我會宣讀所需的警告聲明。本次電話會議和新聞稿中討論的財務結果未經審計。在本次電話會議中，我們可能會討論某些包含前瞻性陳述的主題。我提醒您，本公司所做的任何前瞻性陳述均不保證未來的業績，且各種因素可能導致本公司的實際結果和經驗與預期或預期的結果有重大差異，本公司可能會在本次電話會議上討論這些結果。

Please be advised that a detailed listing of cautionary statements is available to you in our most recently filed 10-K for fiscal year ended July 1, 2005. The content of this webcast contains time-sensitive information that is accurate only as of the date of the live broadcast, October 20, 2005. Any redistribution, retransmission or rebroadcast of this presentation in any form, without the express written consent of Scientific-Atlanta, is prohibited. Please note we plan to provide a copy of today's earnings press release and a transcript of this conference call to the SEC on Form 8-K within four business days. Note, also, that our prepared comments will be available on our website at scientificatlanta.com/investors promptly following this conference call. Jim?

請注意，您可以在我們最近提交的截至 2005 年 7 月 1 日的財政年度的 10-K 文件中查閱到詳細的警告聲明清單。此網路廣播的內容包含時間敏感訊息，這些訊息僅在現場直播日期（2005 年 10 月 20 日）時準確。未經 Scientific-Atlanta 明確書面同意，禁止以任何形式重新分發、重新傳輸或重新廣播本簡報。請注意，我們計劃在四個工作天內以 8-K 表格形式向美國證券交易委員會提供今天的收益新聞稿副本和本次電話會議的記錄。另請注意，我們準備好的評論將在本次電話會議結束後立即在我們的網站 scientificatlanta.com/investors 上發布。吉姆？

Good evening, and thank you for joining us. Tonight, we're pleased to announce the results of a good first quarter. The quarter exhibited year-to-year growth in three important metrics; bookings, sales and profits, while showing sequential decline in some areas. These three metrics have declined sequentially in the first quarter each of the past three fiscal years. In the first quarter, we continue to make significant progress in our efforts to expand our served market. Our international bookings and sales set new records this quarter, and we won a significant new international set-top contract. At SBC, we received acceptance for a substantial scope award for their Project Lightspeed. This phase included Video Operations Center, a Super Hub Office, and the initial Video Hub Office. In addition, our strategy for new products include media center products, international set-tops, IP set-tops, video multiplexing and digital video encoding.

晚上好，感謝您的收看。今晚，我們很高興地宣布第一季的良好業績。本季有三個重要指標年增；預訂量、銷售量和利潤均成長，但部分領域仍呈現季減。過去三個財年的第一季度，這三個指標均連續下降。第一季度，我們在拓展服務市場方面持續取得重大進展。本季我們的國際預訂和銷售創下了新紀錄，並且我們贏得了一項重要的新國際機上盒合約。在 SBC，我們因其 Lightspeed 專案而獲得了一項重大範圍獎項。這一階段包括視訊營運中心、超級樞紐辦公室和初始視訊樞紐辦公室。此外，我們的新產品策略包括媒體中心產品、國際機上盒、IP機上盒、視訊多用和數位視訊編碼。

Now, Wally will review the financial results for the quarter.

現在，沃利將回顧本季的財務表現。

Thanks, Jim. In our first quarter of fiscal year 2006, sales were $490 million. Earnings per share were $0.39, including after-tax expenses of $6 million, related to the expensing of stock options, and less than $1 million related to restructuring and mark-to-market adjustment of an investment Together, these three items represented $0.05 per share. In the first quarter we had bookings of $457 million, an increase of 15% from the first quarter of last year. On a sequential basis, bookings declined 4%. Note that in the fourth quarter of fiscal year 2005, we de-booked backlog valued of $53 million related to do a customer in Japan.

謝謝，吉姆。2006 財年第一季的銷售額為 4.9 億美元。每股收益為 0.39 美元，其中包括與股票選擇權費用相關的 600 萬美元稅後費用，以及與投資重組和按市價調整相關的不到 100 萬美元，這三項合計每股 0.05 美元。第一季我們的訂單金額為 4.57 億美元，比去年第一季成長了 15%。與上一季相比，預訂量下降了 4%。請注意，在 2005 財年第四季度，我們取消了與日本客戶相關的價值 5,300 萬美元的積壓訂單。

Bookings in our first fiscal quarter often are more challenging, because our customers have not yet finalized their capital spending plans for their next fiscal year. First quarter subscriber product bookings were $323 million, up 6% from last year's first quarter but down 10% from last quarter. Following the end of the quarter, we completed an agreement with Time Warner Cable for the delivery of set-tops during calendar year 2006. This contract also includes a commitment to the implementation of Scientific-Atlanta's switched digital technology in certain of their systems, subject to the execution of a finalized switched digital agreement. We expect to book orders for set-tops valued at approximately $125 million related to this contract in our second quarter. These orders supplement orders for early 2006 that were booked in the quarter just ended.

我們第一財季的預訂通常更具挑戰性，因為我們的客戶尚未最終確定下一財年的資本支出計畫。第一季訂戶產品預訂額為 3.23 億美元，比去年第一季成長 6%，但比上一季下降 10%。本季結束後，我們與時代華納有線電視公司達成了一項協議，將在 2006 年度交付機上盒。該合約還包括承諾在其某些系統中實施 Scientific-Atlanta 的交換數位技術，但須簽署最終的交換數位協議。我們預計第二季將獲得與該合約相關的價值約 1.25 億美元的機上盒訂單。這些訂單是對剛結束的季度中已預訂的 2006 年初訂單的補充。

First quarter transmission product bookings were $135 million, a 45% increase from last year and a 12% increase sequential. Transmission bookings included approximately $18 million of bookings from SBC. International bookings were $136 million, an increase of 82% from last year and 27% subsequentially. European bookings were $78 million, an increase of 117% from last year, driven by strong orders for Explorer digital set-tops, transmission products and cable modems. Bookings increased in all international regions. Backlog of $433 million was down 2% from last year and 7% from last quarter. The year-to-year comparison is skewed by the de-booking of Japanese orders in the fourth quarter of last year, which was discussed earlier. We ended the quarter with more than one million Explorer digital set-tops in backlog, including 453,000 digital video recorders.

第一季傳動產品訂單金額為 1.35 億美元，比去年同期成長 45%，比上一季成長 12%。傳輸訂單包括 SBC 的約 1800 萬美元的訂單。國際預訂金額為 1.36 億美元，比去年成長 82%，較上季成長 27%。歐洲的訂單金額為 7,800 萬美元，比去年增長 117%，這得益於 Explorer 數位機上盒、傳輸產品和電纜調變解調器的強勁訂單。所有國際地區的預訂量均有所增加。積壓訂單量為 4.33 億美元，較去年同期下降 2%，較上一季下降 7%。正如我們之前所討論的，去年第四季日本訂單取消導致同比數據出現偏差。截至本季度，我們積壓的 Explorer 數位機上盒訂單量超過 100 萬台，其中包括 453,000 台數位視訊錄影機。

First quarter sales of $490 million increased 8% from last year, but decreased 7% from last quarter. Sales of subscriber products were $361 million, up 8% from last year's first quarter and down 13% sequentially. In the first quarter we sold 1.102 million set-tops, an increase of 7% from last year, but decrease of 7% sequentially. Shipments of WebSTAR cable modems increased 130% from last year and 9% sequentially to 957,000 units. Sales of transmission products were $129 million, up 8% from last year, and 13% from last quarter. In the quarter we received acceptance for a substantial scope of work for SBC's Project Lightspeed and recognized approximately $19 million of sales. International sales of $134 million were the highest in an -- in any quarter in the Company's history. On a year-to-year basis, sales in Europe, Canada and Latin America increased strongly, more than offsetting lower sales in Asia.

第一季銷售額為 4.9 億美元，比去年同期成長 8%，但比上一季下降 7%。用戶產品銷售額為 3.61 億美元，較去年第一季成長 8%，季減 13%。第一季我們銷售了110.2萬台機上盒，比去年同期成長7%，但比上一季下降7%。WebSTAR 電纜調變解調器的出貨量比去年同期成長了 130%，比上一季成長了 9%，達到 957,000 台。傳動產品銷售額為 1.29 億美元，比去年同期成長 8%，比上一季成長 13%。本季度，我們獲得了 SBC 光速專案大量工作的認可，並實現了約 1,900 萬美元的銷售額。1.34 億美元的國際銷售額是該公司歷史上任何一個季度的最高值。與去年同期相比，歐洲、加拿大和拉丁美洲的銷售額強勁成長，足以抵銷亞洲銷售額的下降。

Gross margin of the first quarter was 37.5% of sales, an increase of 90 basis points from last year, primarily due to gross margin improvements and digital video recorders and higher sales volumes. Compared with last quarter, Scientific-Atlanta's gross margin declined by 1.4 percentage points. Consistent with our comments in July, the favorability related to the timing of procurement savings achieved last quarter did not recur in the first quarter of fiscal year 2006. In addition, a mix shift related to the integration of third-party products in the SBC contract and lower sales volumes contributed to the decline in gross margin. These were offset partially by lower royalty and warranty costs for DVR products and the receipt of an insurance payment related to inventory losses.

第一季的毛利率為銷售額的37.5%，比去年同期增加了90個基點，主要由於毛利率的提高和數位錄影機銷售量的增加。與上一季相比，Scientific-Atlanta的毛利率下降了1.4個百分點。與我們 7 月的評論一致，上個季度實現的採購節省時機相關的有利因素並沒有在 2006 財年第一季重現。此外，SBC 合約中第三方產品的整合導致的產品組合變化以及銷售量下降也導致了毛利率的下降。這些損失被 DVR 產品的專利費和保固成本降低以及收到的與庫存損失相關的保險賠款部分抵消。

Operating expenses were $102 million in the first quarter, an increase of $15 million from last year. The largest single driver of this increase was $8.3 million related to do the expensing of stock options, which was recorded as an expense this quarter for the first time. Note that in addition to this amount, approximately $1.4 million related to the expensing of the stock options was included in cost of sales. On a sequential basis, operating expenses declined by $50 million. Included in the last quarter's operating expenses were pre-tax charges of $33 million related to do to the settlement of Gemstar and $20 million related to a tentative settlement with the SEC.

第一季營運費用為1.02億美元，比去年同期增加1500萬美元。這一成長的最大單一驅動因素是與股票選擇權費用化相關的 830 萬美元，這是本季首次被記錄為費用。請注意，除了這筆金額之外，與股票選擇權費用相關的約 140 萬美元也計入了銷售成本。與上一季相比，營運費用下降了 5,000 萬美元。上一季的營運費用包括與 Gemstar 和解相關的 3,300 萬美元稅前費用以及與 SEC 達成的臨時和解相關的 2,000 萬美元稅前費用。

In the first quarter of fiscal 2006. research and development expenses were $44 million, an increase of $6 million from last year, but approximately flat with last quarter. The increase from last year resulted from higher employment related to new set-top and encoder designs and the expensing of stock options. SG&A expenses were $57 million, an increase of $8 million from last year, and $2 million from last quarter. The year-to-year increase was relati -- related primarily to the expensing of stock options. In addition, we recorded pre-tax restructuring expenses of $900,000 related to the consolidation of our European operations. Operating margin was 16.6% of sales, which included an effect of 2.2 percentage points related to the expensing of stock options and restructuring. Operating margin decreased 80 basis points from last year's first quarter, but increased 6.7 percentage points from last quarter. Note that last quarter's operating profit reflected the two settlement charges discussed previously.

2006財年第一季。研發費用為4,400萬美元，比去年同期增加了600萬美元，但與上一季基本持平。與去年相比有所增加，原因是與新機上盒和編碼器設計相關的就業增加以及股票選擇權的費用化。銷售、一般及行政費用為 5,700 萬美元，比去年增加 800 萬美元，比上一季增加 200 萬美元。年成長主要與股票選擇權費用化有關。此外，我們還記錄了與合併歐洲業務相關的 90 萬美元的稅前重組費用。營業利益率為銷售額的 16.6%，其中包括與股票選擇權費用化和重組相關的 2.2 個百分點的影響。營業利潤率較去年第一季下降80個基點，但較上一季增加6.7個百分點。請注意，上個季度的營業利潤反映了先前討論過的兩筆結算費用。

Net income for the first quarter was $61 million or $0.39 per share, including after-tax expenses of $6 million related to the expensing of stock options, and less than $1 million related to restructuring and mark-to-market adjustment of an investment. Together these items represented $0.05 per share. Net income increased by $5 million or 9%, compared with last year's first quarter. Net income increased $26 million or 76% compared with last quarter, which included after-tax charges of $43 million, primarily related to the two settlements discussed previously. The effective tax rate for the first quarter of fiscal year 2006 was 34%.

第一季淨收入為 6,100 萬美元，即每股 0.39 美元，其中包括與股票選擇權費用相關的 600 萬美元稅後費用，以及與投資重組和按市價調整相關的不到 100 萬美元。這些項目合計每股 0.05 美元。與去年第一季相比，淨收入增加了 500 萬美元，增幅為 9%。淨收入與上一季相比增加了 2,600 萬美元，即 76%，其中包括 4,300 萬美元的稅後費用，主要與先前討論的兩項和解有關。2006財年第一季的實際稅率為34%。

Our balance sheet remains very strong. Cash and short- term investments increased by $27 million in the quarter to $1.549 billion. In our first quarter cash provided by operating activities were $27 million. During the quarter, we contributed $6 million to our qualified pension plan. Compared to last quarter, our accounts receivable increased by $31 million, related to the timing of sales in the quarter. Day sales outstanding increased by nine days to 48 days. Inventory increased by $16 million.

我們的資產負債表依然非常強勁。本季現金和短期投資增加了 2,700 萬美元，達到 15.49 億美元。我們第一季經營活動提供的現金為 2,700 萬美元。本季度，我們向合格退休金計畫投入了 600 萬美元。與上一季相比，我們的應收帳款增加了 3,100 萬美元，這與本季的銷售時間有關。應收帳款週轉天數增加了 9 天，達到 48 天。庫存增加了1600萬美元。

Next Michael will discuss highlights of the quarter for subscriber products. Michael?

接下來，麥可將討論本季訂戶產品的亮點。麥可？

Thanks, Wally. Subscriber had a good first quarter. As in recent quarters, shipments of digital video recorders and high-definition set-tops was the most significant contributors to sales. In addition, international shipments and our IP Systems business made strong contributions to the quarter. The market drivers for high-definition television continue to be solid. According to the Consumer Electronics Association, 3.8 million digital televisions, most of which are high-definition sets, were shipped to dealers in the first half of calendar year 2005. This represents an increase of 45% in unit shipments compared to the first half of the preceding year. In our fiscal first quarter, we shipped a total of 362,000 high-definition set-tops, including 221,000 high-definition digital video recorders. Total HD set-top shipment declined by 20% from last quarter, but increased by 50% from last year.

謝謝，沃利。訂閱者第一季表現良好。與最近幾季一樣，數位錄影機和高畫質機上盒的出貨量對銷售額的貢獻最大。此外，國際出貨量和我們的IP系統業務為本季做出了巨大貢獻。高畫質電視的市場驅動力持續強勁。根據消費性電子協會統計，2005年上半年，共有380萬台數位電視機出售給經銷商，其中大部分是高畫質電視機。與去年上半年相比，單位出貨量增加了 45%。在第一財季，我們共售出了362,000台高畫質機上盒，其中包括221,000台高畫質數位錄影機。高畫質機上盒總出貨量比上一季下降了20%，但比去年同期成長了50%。

By our estimates, average digital video recorder penetration is approximately 17% of digital subscribers in systems using Scientific-Atlanta DVR's. The highest system has penetration of approximately 35% and six systems are now above 30% penetration. In our first quarter, digital video recorder sales of 465,000 units increased 17% from last year's first quarter, although an a sequential basis they declined 14%. Development of our MCP-100 media center, which adds a DVD player and recorder to our DVR features, continues on schedule. We expect that media center units with our SARA software will be available for shipment in our second quarter.

根據我們的估計，在使用 Scientific-Atlanta DVR 的系統中，數位錄影機的平均普及率約為數位使用者的 17%。滲透率最高的系統約為 35%，目前有六個系統的滲透率超過 30%。在第一季度，數位錄影機的銷量為 465,000 台，較去年第一季度增長了 17%，但環比下降了 14%。我們的 MCP-100 媒體中心的開發工作正在按計劃進行，該中心在我們的 DVR 功能中添加了 DVD 播放器和錄影機。我們預計搭載 SARA 軟體的媒體中心單元將在第二季上市。

Turning to international, we have a strong quarter for international set-tops. In the quarter we shipped approximately 250,000 digital set-tops to customers outside the United States. This is an increase of 82% from last year and 42% sequentially. Sales of our Explorer 4200DVB products to Telewest were strong, as were sales of digital set-tops to customers in Canada. Our first DVR products for the UK markets, the Explorer 8300DVB PVR is well underway. We have delivered approximately 1,000 units to Telewest in support of their field testing, which is in process. The product that we are delivering to Telewest has three video tuners and is the first high definition cable set-top in the UK. In the support of their upcoming launch, we have received our first purchase order for 25,000 units of this product.

談到國際市場，本季我們的國際機上盒市場表現強勁。本季度，我們向美國以外的客戶出貨了約 25 萬台數位機上盒。這比去年同期增長了 82%，比上一季增長了 42%。我們的 Explorer 4200DVB 產品對 Telewest 的銷售表現強勁，數位機上盒對加拿大客戶的銷售表現也同樣出色。我們針對英國市場推出的首款 DVR 產品 Explorer 8300DVB PVR 正在順利研發中。我們已向 Telewest 交付了大約 1,000 台設備，以支援他們正在進行的現場測試。我們向 Telewest 交付的產品有三個視訊調諧器，是英國第一台高清有線機上盒。為了支持他們即將推出的產品，我們已經收到了該產品的首份 25,000 台的採購訂單。

Following the end of the quarter, we signed an agreement with ntl for the supply of a new DVR set-top in the UK. The product, called the Explorer 8450DVB HD PVR, will include functionality similar to that of the Explorer 8300DVB and will add the support for MPEG-4. Development on this set-top has begun, and is targeted to be completed for product release in calendar year 2006. As previously announced, we have launched the Explorer 8200HDJ product in Japan to three customers at four sites. We're receiving good response from subscribers in the initial deployment, and we continue to work with another cable operator to make their requirements.

本季結束後，我們與 ntl 簽署了一項協議，為英國供應新的 DVR 機上盒。該產品名為 Explorer 8450DVB HD PVR，將包括與 Explorer 8300DVB 類似的功能，並增加對 MPEG-4 的支援。該機上盒的開發工作已經開始，預計將於 2006 年完成並發布產品。正如先前宣布的那樣，我們已經在日本向四個地點的三個客戶推出了 Explorer 8200HDJ 產品。在初始部署中，我們收到了用戶的良好回饋，並且我們將繼續與另一家有線電視營運商合作以滿足他們的要求。

Now, turning to our IP Systems business, cable modem sales in the first quarter were very strong. We sold 957,000 modems, an increase of 130% from last year, and an increase of 9% sequentially. The mix continues to shift in favor of voice modems. 44% of unit shipments, or 425,000, were voice modems. Voice modem shipments increased by 305% from last year, and 24% sequentially. International sales of cadl -- cable modems continue to be very strong. More than 50% of data and voice modems were shipped to customers outside of the United States. Data modems were shipped in substantial numbers to all international regions, whereas voice modem shipments were more concentrated in Europe.

現在，談到我們的 IP 系統業務，第一季的電纜數據機銷售非常強勁。我們銷售了 957,000 台數據機，比去年同期成長了 130%，比上一季成長了 9%。組合繼續向語音調製解調器傾斜。出貨量中 44%（425,000 台）為語音數據機。語音調變解調器的出貨量比去年同期成長了 305%，比上一季成長了 24%。CADL—電纜調變解調器的國際銷售持續強勁。超過 50% 的數據和語音數據機被運往美國以外的客戶。數據調變解調器大量出貨至所有國際地區，而語音調變解調器的出貨則主要集中在歐洲。

In the quarter, SBC named Scientific-Atlanta as one of the two set-top suppliers for its U-verse TV services, which is delivered over the network that SBC is expanding through its Project Lightspeed. Our new IT -- IPTV products will enable consumers to access TV programming, video-on-demand, interactive applications, and other advanced features that are part of the U-verse family of services services. Set-tops will be integrated with the Microsoft TV IPTV Edition software platform, and will support advanced digital video cloning technologies.

本季度，SBC 將 Scientific-Atlanta 指定為其 U-verse 電視服務的兩家機上盒供應商之一，該服務透過 SBC 正在透過其 Lightspeed 專案擴展的網路提供。我們的新 IT—IPTV 產品將使消費者能夠存取電視節目、視訊點播、互動式應用程式以及 U-verse 系列服務中的其他高級功能。機上盒將與Microsoft TV IPTV Edition軟體平台集成，並支援先進的數位視訊克隆技術。

Next, I'll turn it over to Dwight. Dwight.

接下來，我將把麥克風交給德懷特。德懷特。

Thanks, Michael. Our transmission business had another good quarter. The book-to-bill ratio for our business was greater than one. Five core technologies are driving the transmission business: encoding, multiplexing, switch digital, optics, and HFC access. The first of these, MPEG encoding, is one in which we have made substantial investments in the past several years. In addition to enhancing our MPEG-2 encoders with advanced algorithms, we introduced a line of encoders capable of supporting advanced digital video encoding. Our standard definition advanced encoders are currently shipping and we expect to deliver test units of our high definition advanced encoders before the end of the calendar year, followed by shipment of production units in early calendar year 2006. We continue to invest in advanced video multiplexing and MPEG stream processing technologies.

謝謝，麥可。我們的傳輸業務又度過了一個良好的季度。我們業務的訂單出貨比大於一。五項核心技術推動傳輸業務的發展：編碼、重複使用、交換數位、光學和 HFC 存取。其中第一個是 MPEG 編碼，我們在過去幾年中對其進行了大量投資。除了使用先進的演算法來增強我們的 MPEG-2 編碼器之外，我們還推出了一系列能夠支援高級數位視訊編碼的編碼器。我們的標準清晰度高級編碼器目前正在發貨，我們預計在今年年底之前交付高清高級編碼器的測試單元，然後在 2006 年初交付生產單元。我們繼續投資先進的視訊多路復用和 MPEG 串流處理技術。

Our new flagship product in this area, the Digital Content Manager, will be capable of simultaneously processing up to 2,000 -- up to 2,000 standard definition digital video streams, significantly greater than the past offerings in the marketplace. Representative applications supported by the DCM include: digital program insertion, transrating, statistical multiplexing, ASI to IP or IP to ASI conversion. These applications apply to both standard definition and high definition content ,and will extend to advanced digital video encoding as a product road map is developed. Within the quarter we received several orders for the DCM, and we currently expect to begin shipments in our second quarter.

我們在該領域的新旗艦產品數位內容管理器將能夠同時處理多達 2,000 個標準清晰度數位視訊串流，大大超過市場上過去的產品。DCM支援的代表性應用包括：數位節目插入、速率轉換、統計重複使用、ASI到IP或IP到ASI的轉換。這些應用適用於標準清晰度和高清內容，並且隨著產品路線圖的製定，將擴展到先進的數位視訊編碼。本季我們收到了多份 DCM 訂單，目前我們預計將在第二季開始出貨。

Interest in switch digital services is growing among the MSOs. This technology allows cable operators to save bandwidth while offering digital content by switching it in the home only when selected by a consumer. Our investments include the Switch Digital Server, the DCM as a staging processor, and our portfolio of QAM modulators. Through switched digital technology, operators offer far more niche content, like foreign language programming or college sports, while making bandwidth available for higher-speed data services and voice services and new applications.

多系統運營商對於轉換數位服務的興趣日益濃厚。該技術允許有線電視營運商節省頻寬，同時透過僅在消費者選擇時在家中切換數位內容來提供數位內容。我們的投資包括 Switch Digital Server、作為分階段處理器的 DCM 以及我們的 QAM 調變器產品組合。透過交換數位技術，營運商可以提供更多利基內容，如外語節目或大學體育節目，同時為更高速的數據服務、語音服務和新應用提供頻寬。

A fourth technology of interest to us is optics. We continue to do enhance our Prisma II line of high-power transmitters, optical amplifiers, and receivers. The Prisma II is a chassis- based, carrier-grade platform and we continue to increase density and decrease cost, while improving reliability and performance. Earlier this year we doubled the density of the 13-pin transmitters in this platform, while maintaining backwards compatibility. These enables MSOs to leverage their past investment in infrastructure, chassis, monitoring and power supplies and yet take advantage of the latest technology. The higher density allows MSOs to perform more node splitting with les -- with less rack space. In addition, the 1550 products continue to get better performance at higher outputs with improved economics, especially with respect to fiber-to-the-home architectures.

我們感興趣的第四項技術是光學。我們將繼續增強我們的 Prisma II 系列高功率發射器、光放大器和接收器。Prisma II 是一個基於機箱的營運商級平台，我們不斷提高密度並降低成本，同時提高可靠性和效能。今年早些時候，我們將該平台中 13 針發射器的密度提高了一倍，同時保持了向後相容性。這使得 MSO 能夠利用其過去在基礎設施、機箱、監控和電源方面的投資，同時也能利用最新的技術。更高的密度使得 MSO 能夠使用更少的機架空間執行更多的節點分割。此外，1550 產品在更高的輸出下繼續獲得更好的性能，並且經濟性得到改善，特別是在光纖到戶架構方面。

Lastly, we continue to invest in our HFC access products, The Gallium Arsenide technology within our GainMaker family of access products allows us to extend the useable bandwidth of coaxial cable to one gigahertz. The newest addition to our one gigahertz product portfolio is the GainMaker 4-port optical node, which we currently expect to be available for shipment in the third fiscal quarter. We are applying these technologies to three key growth markets: bandwidth management for cable operators, telephone company architectures, and international markets.

最後，我們繼續投資於我們的 HFC 接入產品，我們的 GainMaker 系列接入產品中的砷化鎵技術使我們能夠將同軸電纜的可用頻寬擴展到 1 千兆赫。我們的千兆赫產品組合的最新成員是 GainMaker 4 埠光纖節點，我們目前預計該產品將於第三財季出貨。我們將這些技術應用於三個關鍵成長市場：有線電視營運商的頻寬管理、電話公司架構和國際市場。

HFC bandwidth management remains a critical issue for cable operators. Our customers are pursuing a variety of approaches to this issue, and we have multiple technologies to offer. Our encoders have been deployed in digital simulcast applications at mul -- at multiple major MSO,s and we achieved record shipments in the first quarter. Our one gigahertz GainMaker products are meeting with success, and our first quarter shipment of one gigahertz products were approximately $8 million, and went to several of the top MSOs in North America and to other operators around the world. Additionally, our customers are exploring the use of advanced encoders to save bandwidth and expand their HDTV services.

HFC 頻寬管理對於有線電視營運商來說仍然是一個關鍵問題。我們的客戶正在尋求各種方法來解決這個問題，而我們可以提供多種技術。我們的編碼器已部署在多個主要 MSO 的數位同步廣播應用中，並且我們在第一季實現了創紀錄的出貨量。我們的 1 千兆赫 GainMaker 產品取得了成功，第一季 1 千兆赫產品的出貨量約為 800 萬美元，銷往了北美幾家頂級 MSO 和世界各地的其他營運商。此外，我們的客戶正在探索使用先進的編碼器來節省頻寬並擴展他們的高清電視服務。

Lastly, we received a commitment from Time Warner Cable to deploy our switched digital technology in calendar year 2006, subject to execution of a finalized switched digital agreement. We expect these products to be available in the second half of the fiscal year. Our encoders are -- our encoders are applicable to the video architects being deployed by telephone companies, as demonstrated by our progress with SBC Project Lightspeed. Equally critical to our success at SBC has been our system design and integration expertise. In the quarter we received SBC's acceptance for the first Super Hub Office, Video Operations Center and Video Hub Office. These facilities require the integration of hardware and software products from Scientific-Atlanta, as well as switches, routers, servers and other products from a variety of other companies.

最後，我們得到了時代華納有線電視公司的承諾，將在 2006 年部署我們的交換數位技術，但須簽署最終的交換數位協議。我們預計這些產品將在本財年下半年上市。我們的編碼器 - 我們的編碼器適用於電話公司部署的視訊架構師，正如我們在 SBC Project Lightspeed 中所取得的進展所證明的那樣。我們的系統設計和整合專業知識對於 SBC 的成功同樣重要。本季度，我們獲得了 SBC 對首個超級樞紐辦公室、視訊營運中心和視訊樞紐辦公室的認可。這些設施需要整合科學亞特蘭大公司的硬體和軟體產品，以及其他多家公司的交換器、路由器、伺服器和其他產品。

Another type of video architecture is enabled by the launch of SES AMERICOM's new IP video service called IP PRIME. In the quarter, we announced an agreement to work with SES AMERICOM on this network. With completion of the initial phase, SES AMERICOM will employ 140 Scientific-Atlanta MPEG-4 encoders to deliver its multi-channels, standard-definition service. IP PRIME enables service providers to deliver digital video via IP transport to their customers over their existing networks without investing in their own encoding ins -- infrastructure.

SES AMERICOM 推出的名為 IP PRIME 的新 IP 視訊服務實作了另一種類型的視訊架構。本季度，我們宣布與 SES AMERICOM 達成協議，在該網路上開展合作。在初始階段完成後，SES AMERICOM 將採用 140 個 Scientific-Atlanta MPEG-4 編碼器來提供其多通道、標準清晰度服務。IP PRIME 使服務提供者能夠透過現有網路以 IP 傳輸方式向客戶提供數位視頻，而無需投資自己的編碼基礎設施。

International markets continue to provide an attractive source of growth for our business. We experienced quarter-over-quarter revenue growth in all of our international markets. In Europe, for example, our encoding and multiplexing technology led to key wins with broadcasters in Germany, Italy, Spain and Denmark. In addition, we won a number of DVB, cable headend deals. We experienced growth in addressing on demand applications and we were awarded optics business in an RF overlay for fiber to the Home Network. In Asia, a major telephone operator selected our products for an enhancement to their network. With another service provider, we received customer acceptance of our closed-loop statistical multiplexing upgrade to their satellite uplink. As part of our expanding commitment to the Asia-Pa -- Asia-Pacific region, we completed the acquisition of all outstanding interest in the Scientific-Atlanta Shanghai joint venture in the quarter.

國際市場持續為我們的業務提供有吸引力的成長來源。我們所有國際市場的收入均實現了環比增長。例如，在歐洲，我們的編碼和多路復用技術使我們贏得了德國、義大利、西班牙和丹麥廣播公司的關鍵訂單。此外，我們還贏得了許多 DVB 和有線電視頭端交易。我們在滿足按需應用方面取得了成長，並獲得了光纖到戶網路的射頻覆蓋的光學業務。在亞洲，一家大型電話業者選擇了我們的產品來增強其網路。我們與另一家服務供應商合作，對其衛星上行鏈路進行閉環統計複用升級，並獲得了客戶的認可。作為我們對亞太地區不斷擴大的承諾的一部分，我們在本季完成了對 Scientific-Atlanta 上海合資公司所有未償權益的收購。

Back to you, Jim.

回到你身邊，吉姆。

Thanks, Dwight. In summary, we're pleased with first quarter, in which bookings, sales and earnings grew from a year ago. We are encouraged that our groshin --growth initiatives with telephone companies and with international service providers are making substantial contributions. In addition, we continue to focus on cre -- creation of innovative new products, including international set-top, IP set-tops, video multiplexers and encoders, that can contribute to the our customers' success in the future. We recognize the need to put our cash to more productive use. For the past several quarters we've been unable to repurchase our shares because we have been in possession of material non-public information related to certain issues. We anticipate that we will be able to resolve these issues by the end of the calendar year.

謝謝，德懷特。總而言之，我們對第一季感到滿意，預訂量、銷售額和收益較去年同期都有所成長。令我們感到鼓舞的是，我們與電話公司和國際服務提供者共同實施的成長計畫正在做出巨大貢獻。此外，我們繼續專注於創造創新新產品，包括國際機上盒、IP 機上盒、視訊多工器和編碼器，這些產品可以為客戶未來的成功做出貢獻。我們認識到需要將現金用於更有成效的用途。過去幾個季度，我們一直無法回購我們的股票，因為我們掌握著與某些問題相關的重大非公開資訊。我們預計能夠在今年年底前解決這些問題。

Now we would be pleased to take any questions. .

現在我們很樂意回答任何問題。 。

Thank you, ladies and gentlemen, the floor is now open for questions. [OPERATOR INSTRUCTIONS] Our first question is coming from Daryl Armstrong. Please state your affiliation and pose your question.

謝謝女士們、先生們，現在開始提問。[操作員指示] 我們的第一個問題來自達裡爾·阿姆斯特朗。請說明您的所屬機構並提出您的問題。

Hi, this is Daryl Armstrong from Citigroup. I have two quick questions. First one is relevant to Japan. Is there any update there? Are you guys still engaged with the customer there, and have you guys been presented with any deadlines to resolve the existing issues relative to the set-tops that you -- that you ship there?

大家好，我是花旗集團的達裡爾·阿姆斯壯。我有兩個簡單的問題。第一個與日本有關。那裡有更新嗎？你們是否仍與那裡的客戶保持聯繫？是否有任何期限來解決與你們運往那裡的機上盒相關的現有問題？

We are still engaged with the customer and we have not set any deadlines for completion.

我們仍在與客戶接洽，尚未設定任何完成期限。

Okay. That's helpful. And then second of all, what percentage of the backlog this quarter was for DVR?

好的。這很有幫助。其次，本季積壓訂單中 DVR 比例是多少？

We indicated that the backlog of more than a million Explorer set-tops included 453,000 DVRs.

我們指出，積壓的 100 多萬台 Explorer 機上盒中包括 453,000 台 DVR。

Thank you very much.

非常感謝。

Your next question is coming from Ari Bensinger. Please state your affiliation and pose your question.

您的下一個問題來自 Ari Bensinger。請說明您的所屬機構並提出您的問題。

Standard and Poor's. Just looking at the breakdown of the Explorer set-top boxes, there seemed to be a sharp drop-off in the high-definition DVR's and -- sequentially, and I'm just wondering what your take is on the market there, and how you see it playing out throughout fiscal year '06?

標準普爾。僅從 Explorer 機上盒的細分來看，高清 DVR 的銷量似乎出現了連續的急劇下降，我只是想知道您對那裡的市場有何看法，以及您如何看待它在 2006 財年的發展？

This is -- this is Wally Haislip. I think that we did see a drop-off of HDTV cable set-top shipments, but as Michael said in the conference call, more than 3.8 million digital sets ar -- digital TVs were shipped in the first half of this year, which represented, if I recall correctly, about a 45% increase over last year. So there is an ongoing pent-up demand, in our opinion, for HD cable set-tops. There was a drop this quarter. During the summertime lots of people were on vacation and, therefore, as Jim indicated in his conference call, the last three years we've seen a drop-off of some sort of business from Q4 to Q1, but digital set-tops, including HDTVs, are up significantly versus last year. So we do have one data point of it dropping. There is some degree of seasonality in the quarter, from Q4 to Q1, as we enter into the summer months, but we are very, very pleased with the fact that there is a significant amount of digital TV continuing to be sold. Therefore, as we look forward in the future, there seems to be a continuing demand for digital HDTV cable set-tops.

這是——這是沃利·海斯利普。我認為我們確實看到高清電視有線電視有線機上盒出貨量有所下降，但正如邁克爾在電話會議中所說，今年上半年數位電視的出貨量超過 380 萬台，如果我沒有記錯的話，這比去年同期增長了約 45%。因此，我們認為，高畫質有線機上盒的需求仍被壓抑著。本季有所下降。夏季很多人都在度假，因此，正如吉姆在電話會議中指出的那樣，過去三年，我們看到從第四季度到第一季度某種業務有所下降，但包括高清電視在內的數位機上盒的銷量與去年相比大幅增長。所以我們確實有一個數據點下降。隨著我們進入夏季，從第四季度到第一季度，這個季度存在一定程度的季節性，但我們非常高興地看到，仍有大量數位電視繼續銷售。因此，展望未來，對數位高畫質電視有線機上盒的需求似乎仍將持續存在。

One of the things I'd add to that is, if you look at our customers, general they see their weakest quarter in the second quarter of the year, and that's generally caused for the fact that all of the university students go home, so there is a lot of disconnects in that area. And you have the migration from the warmer climates to the northern geography as the summer months come. So if you go back and look at our customers, what you'll find is over many, many years, decades, they -- they see their worst quarter in the second quarter. And of course what that does, as they see the disconnects and that, we always tend to see a slower first quarter. In fact, as I mentioned in the script, what you see is, in the key metrics, our business always tends to drop in the first quarter over the--versus the fourth quarter.

我想補充的一點是，如果你看看我們的客戶，他們通常會發現一年中最疲軟的季度是第二季度，這通常是因為所有的大學生都回家了，所以那個地區存在著很多脫節。隨著夏季的到來，人們開始從氣候較溫暖的地方遷移到北方地區。因此，如果你回頭看看我們的客戶，你會發現，在很多年、幾十年的時間裡，他們在第二季經歷了最糟糕的季度。當然，當他們看到脫節時，我們總是會看到第一季的成長放緩。事實上，正如我在腳本中提到的那樣，您會看到，在關鍵指標中，與第四季度相比，我們的業務在第一季總是趨於下降。

Thank you.

謝謝。

Our next question is coming from Marcus Kupferschmidt. Please state your affiliation and pose your question.

我們的下一個問題來自 Marcus Kupferschmidt。請說明您的所屬機構並提出您的問題。

Hi, this is Betsy on behalf of Marcus. I'm on the call a little bit late, so I apologize if you already talked about this, but last quarter you gave some of your HDTV unit forecast for the U.S. market and you said seven million for the second half of '05, how many do you project in 2006 and 2007 in the U.S.?

你好，我是 Betsy，代表 Marcus。我接電話有點晚，所以如果您已經談到這個問題，我很抱歉，但上個季度您給出了美國市場高清電視銷量預測，您說 2005 年下半年將達到 700 萬台，那麼您預計 2006 年和 2007 年美國的銷量會是多少呢？

I think the Consumer Electronics Association, which really puts those numbers out, started the year at the consumer electronics show in, I believe, January with a very, very, very bullish forecast. I think there has been a recent revision of that forecast down, but I think you would continue to see there has -- is significant growth on the year-over-year basis, as Michael said in the script.

我認為，真正公佈這些數據的消費電子協會在一月份的消費電子展上對今年的情況給出了非常非常樂觀的預測。我認為最近對該預測進行了下調，但我認為你會繼續看到 - 與去年同期相比有顯著的增長，正如邁克爾在腳本中所說的那樣。

Okay. Thank you.

好的。謝謝。

I think they revor -- revised the forecast down. But they were looking for an enormous amount of growth and I think -- Michael said you still see very significant growth year-over-year.

我認為他們下調了預測。但他們尋求的是巨大的成長，我認為——邁克爾說，你仍然會看到同比增長非常顯著。

Okay.

好的。

Next question question is coming from Nikos Theodosopoulos. Please state your affiliation and pose your question.

下一個問題來自 Nikos Theodosopoulos。請說明您的所屬機構並提出您的問題。

I had a couple of questions. I guess the first one on gross margin. Can you quantify the magnitude of the insurance payment?

我有幾個問題。我想第一個是毛利率。您能量化保險理賠的金額嗎？

We -- the magnitude of the insurance payment was approximately $2 million.

我們－保險賠付金額約為 200 萬美元。

$2 million. Okay. Second question I had was can you give some sense of the direction on the blended ASP for set-tops and cable modems sequentially? Did each go up, did they go down? Can you gi -- I'm assuming set-tops went down, but can you give us a sense of the direction of both of those?

200萬美元。好的。我的第二個問題是，您能否依序介紹一下機上盒和電纜數據機的混合 ASP 的方向？它們都是漲了嗎？還是下跌了嗎？你能告訴我們——我假設機上盒壞了，但你能告訴我們這兩者的方向嗎？

Well, the set-top average selling price is -- the direction was down during the quarter, versus last quarter. If you look at last quarter, we shipped 1.2 million set-tops and of those, we shipped 540,000-plus DVRs. This quarter, out of [inaudible] we actually shipped 465,000 DVRs, so the percentage of DVRs as a total were lower this time, creating a decline. With regard to the cable modem prices, cable modem prices, similar to set-tops, are declining, almost each quarter, as an individual element, but the--I would tell you that as the mix of cable modems ever increases towards voice-over-IP, that there was not any significant change in average selling prices of the total cable modems during -- during the quarter.

嗯，機上盒的平均售價——與上一季相比，本季呈下降趨勢。如果你看一下上個季度，我們出貨了 120 萬台機上盒，其中，我們出貨了 54 萬多台 DVR。本季度，我們實際上出貨了 465,000 台 DVR，因此這次 DVR 總量的百分比較低，造成了下降。關於電纜調變解調器的價格，與機上盒類似，電纜調變解調器的價格幾乎每季都在下降，但我想告訴你，隨著電纜調變解調器的組合不斷向 IP 語音方向增加，本季電纜調變解調器整體平均售價並沒有顯著變化。

Okay. My last question's on the spending patterns of your U.S. customers. You know, if you look at your results, you know, the year-over-year sequential, however you want to look at it, bookings, et cetera, from a U.S. cable perspective, that was probably your weakest performance. And, you know, this week Motorola and [Secore] kind of talked about tightening CapEx budgets in the U.S. when they gave guidance for the fourth quarter. And last year in your calendar--in the calendar fourth quarter, you experienced some deferrals and so forth. Do you think that the cable companies are -- are tightening their budgets going into the fourth quarter and will look to defer, you know, spending until they get into the first quarter, like what happened to you last year? Or do you not know--do you not have a good sense of that at this point?

好的。我的最後一個問題是關於你們美國客戶的消費模式。你知道，如果你看一下你的業績，你知道，與去年同期相比，無論你怎麼看，預訂量等等，從美國有線電視的角度來看，這可能是你最差的表現。而且，你知道，本週摩托羅拉和 [Secore] 在提供第四季度指引時談到了收緊美國資本支出預算。去年，在日曆的第四季度，您經歷了一些延期等等。您是否認為有線電視公司在進入第四季度時會縮緊預算，並會考慮將支出推遲到第一季度，就像去年的情況一樣？或者您不知道——您現在對此還沒有很好的認識嗎？

I think a couple of things that you would look at. The first one, I think, is that you look at the general trend in a competitive marketplace, the customers that tend to increase their capital budgets. Now, as you go through the year, the way you can kind of go do the math on this, obviously, you can go through it customer by customer and in the first part of the year, they disclose what their spending has been through the first six months. And then you know what their estimate is for the full year, so you can find out how their doing relative to the capital expenditure.

我認為有幾件事值得你關注。我認為，首先要觀察競爭市場的整體趨勢，即客戶傾向於增加資本預算。現在，隨著這一年的過去，您可以對此進行計算，顯然，您可以逐一查看每個客戶，並在年初披露他們在前六個月的支出情況。然後你就知道他們對全年的估計是多少，這樣你就可以了解他們在資本支出方面的表現如何。

Now, if you go through that customer by customer, what you'll find is a number of the customers have spent approximately 50% or a little bit less than 50%, as they've gone through the first six months. If you go through that analysis, also, you may find that one or so has spent more than 50%, so I would suggest that that is probably a customer by customer scenario. And a lot of it relates to how are they spending their, quote, you know, announced budgets for the year, and where they stand at the midpoint, and if you, you know, first six months are available, the rest will be available for the next 30 days of the next nine months. What you'll find is that most are tracking linearly to their plan. At least one is spending more. So you have to go figure out which one that is and then you can then judge that comment.

現在，如果你逐一查看這些客戶，你會發現，在前六個月中，許多客戶的消費金額約為 50% 或略低於 50%。如果您進行該分析，您還會發現大約有一個人的支出超過了 50%，因此我認為這可能是針對每位客戶的情況。其中很大一部分與他們如何花費他們宣布的年度預算以及他們在中期所處的狀況有關，如果你知道前六個月可用，那麼剩下的將在未來九個月的接下來的 30 天內可用。你會發現大多數人都在按照他們的計劃進行。至少有一個國家的支出比較多。所以你必須弄清楚那是哪一個，然後你才能判斷該評論。

Okay. Thank you.

好的。謝謝。

Your next question is coming from Ehud Gelblum. Please announce your affiliation and pose your question.

您的下一個問題來自 Ehud Gelblum。請表明您的所屬機構並提出您的問題。

Thanks. It's JP Morgan. Couple questions I have. First of all, the drop in high end set-top boxes that occurred this quarter that put a drag on the ASP, was that due to one customer in particular, or did you see that spread out over the entire customer base? The concept of a shift away from high end boxes?.

謝謝。是摩根大通。我有幾個問題。首先，本季高階機上盒銷量的下降對平均售價造成了拖累，這是由於某個特定客戶造成的，還是蔓延至整個客戶群？遠離高端盒子的概念？

The drop--there was some--the Q4 to Q1 drop did relate to nearly all of the customers. There was one or two customers actually increased DVR quarter-over-quarter. But there were a couple quarters--there were a couple of customers and we don't give specific information by individual customers, but there were a couple of customers that did take a significant amount less quarter-over-quarter. But the drop was in nearly all of the -- of our customer base.

第四季相對於第一季的下降確實與幾乎所有客戶有關。實際上有一兩個客戶的 DVR 數量比上一季增加。但有幾個季度——有幾個客戶，我們沒有提供個別客戶的具體信息，但有幾個客戶的季度環比增長確實大幅減少。但幾乎​​所有的客戶群都出現了下滑。

Okay. Given that it's a fiscal first quarter and you expect it as well as most other people that the total box shipments would fall, was the total box numbers didn't necessarily fall out of line, it was so much the mix. Did that mix surprise you? And, if so, how did your customers explain it? Did they say it had something to do with the order patterns of their customers or more the orders of the different types of boxes in stock?.

好的。考慮到這是財政第一季度，並且您和大多數人一樣預計總箱數會下降，那麼總箱數不一定會下降，而只是混合程度較高。這種混合令你感到驚訝嗎？如果是的話，您的客戶是如何解釋的？他們是否說過這與客戶的訂單模式有關，或與庫存中不同類型的盒子的訂單有關？

I think that certainly there is going to be a drop in total, like you said, in the drop --there was a drop of -- from 1.2 to 1.1. There is a summer-month type of impact. I think that some of the drop associated, as I indicated, was in DVR's, was related to a couple specific customers. At least one it relates to, simply, his buying patterns from us. We've reiterated several times before that some customers don't buy on a regular quarter-by-quarter basis. They buy a lot one quarter and then they slow down the next quarter and then reiterate that pattern over and over again. At least, in one customer that was the case.

我認為總數肯定會下降，就像你說的，下降幅度是——從 1.2 下降到 1.1。存在夏季類型的影響。我認為，正如我指出的，部分相關的下降是與 DVR 有關，與幾個特定的客戶有關。至少有一點與他從我們這裡購買商品的模式有關。我們之前已經多次重申，有些客戶不會按季定期購買。他們在一個季度大量購買，然後在下個季度放慢購買速度，然後一遍又一遍地重複這種模式。至少，有一位顧客確實如此。

You know, there is a number of ways you can kind of cut this. One is, obviously, you look at it as a quarter-over-quarter basis and you see where you are relative to the beginning of this year versus last year. And as we reported, we had a better first quarter this year than we had last year. I think then if you start to try to get under it and look at it, what you'll find is that historically we have a weaker first quarter than we have a fourth quarter. And if you look at it from a booking standpoint, it is easy to kind of understand how this happens. You know, if a customer happens to book six months worth of orders at one time, 90 days later we can't book another six months because we have a six-month booking policy. So the only additional booking you would only get there is three additional months because that is all the time that has elapsed. Also we get the situation as we go through the first quarter that our customers really haven't finalized their budgets for next year so in many cases they're reluctant to commit the budgets until they get approved by all their senior people. So as we talked about, you get lumpiness in our bookings thing both -- in both directions as you go, so it's always kind of best to look at multiple quarters as you do that.

你知道，有很多方法可以解決這個問題。顯然，首先，你可以將其視為一個季度環比數據，並查看今年年初與去年年初的相對情況。正如我們所報道的，今年第一季我們的表現比去年更好。我認為，如果你開始嘗試去了解它並觀察它，你會發現從歷史上看，我們的第一季比第四季更疲軟。如果你從預訂的角度來看，就很容易理解這種情況是如何發生的。您知道，如果客戶碰巧一次預訂了六個月的訂單，那麼 90 天後我們就不能再預訂六個月了，因為我們有六個月的預訂政策。因此，您唯一能獲得的額外預訂是額外三個月，因為已經過去了三個月。此外，在第一季度，我們還發現，我們的客戶實際上還沒有最終確定明年的預算，因此在許多情況下，他們不願意承諾預算，直到他們得到所有高層人員的批准。因此，正如我們所討論的，我們的預訂量在兩個方向上都會出現波動，因此，在這樣做時，最好始終查看多個季度的數據。

Jim, I thought you were talking more about drop off of high end boxes more so than the total --.

吉姆，我以為你談論的更多的是高端盒子的投放，而不是總數——。

You also get the same thing to some extent in sales, where customers will take more at once or they'll push it out a little bit. So it's usually better to look at these things on a multiple-quarter basis. Clearly, we see no fundamental change in the high-definition market, and as Michael walked you through, if you look at penetration of DVRs of various systems, some are up in the 30%, the average is at 17 and some are obviously lower than that. So you know that a lot of systems have passed a whole lot higher number than the average. So we don't see any fundamental shifts in either one of these markets.

在銷售中你也會在某種程度上遇到同樣的情況，顧客會一次性拿更多，或者會稍微多拿一些。因此，最好以多個季度為基礎來看待這些事情。顯然，我們沒有看到高清市場發生根本性的變化，正如邁克爾向您介紹的那樣，如果您查看各種系統的 DVR 的滲透率，有些系統的滲透率上升了 30%，平均值為 17%，而有些則明顯低於這個數字。所以你知道很多系統傳遞的數字都比平均值高很多。因此，我們並未看到這兩個市場有任何根本性轉變。

To give you one other data point, and it is just a data point, is that I would remind you that we indicated that of the one million Explorer set-tops that we have in our backlog, 453,000 units were DVRs and that actually represented a 55,000-unit increase from last quarter's 398,000 level.

再給你一個數據點，這只是一個數據點，我想提醒你，我們指出，在我們積壓的 100 萬台 Explorer 機上盒中，有 453,000 台是 DVR，實際上比上一季的 398,000 台增加了 55,000 台。

Okay.

好的。

Okay?

好的？

Gross margin 37.5%, remains strong,stronger than most people, myself included, had thought, despite the lower ASP and the lower end boxes. How sustainable is that gross margin at that point? Is your gross margins somewhat invariance to the types of boxes you have now?

毛利率為 37.5%，儘管平均售價較低且終端價格較低，但仍保持強勁，比包括我在內的大多數人想像的要高。此時的毛利率能維持多久？您的毛利率是否與您現在擁有的盒子類型有些不變？

As we indicated in the conference call, we did have a very good quarter and margins, as you indicate, and we continue to work on that issue at this Company, and we've had pretty good success over the last couple of years. If you look at this particular quarter and compare it to last quarter, as we indicated, we had three items that did add to favorability during the quarter, royalty and warranty costs associated with DVRs, looking at the rate of accrual of royalties, required for DVRs, as well as the warranty failure rate, is coming down, thus requiring lower warranty costs, as well as the one-time insurance payment. If you look at that and compare that to and its impact relative, perhaps, offset by a couple of other items, you draw the conclusion that probably the unusual items have about a one-point impact -- favorable impact on the quarter.

正如我們在電話會議中所指出的，我們確實有一個非常好的季度和利潤率，正如您所說，我們將繼續在公司解決這個問題，並且在過去幾年中我們取得了相當大的成功。如果您查看這個特定季度並將其與上一季進行比較，正如我們所指出的，我們有三項確實增加了本季度的有利因素，即與 DVR 相關的特許權使用費和保修成本，從 DVR 所需的特許權使用費的應計率來看，以及保修故障率正在下降，因此需要更低的保修成本以及一次性保險支付。如果您對此進行觀察並將其與相對影響進行比較，也許會被其他幾個項目所抵消，您會得出這樣的結論：不尋常的項目可能會對本季度產生大約一個百分點的影響 - 有利的影響。

So with that information, again, I would emphasize that on an on-going basis, we believe that we can maintain margins in that 36 to 37% range. We endeavor to have it at the high end and beat it, even, and we did this quarter. But we have confidence that we can move throughout the year and continue to maintain margins in the 36 to 37% range, depending on the mix of products and mix of customers as we go through out the year.

因此，有了這些訊息，我再次強調，我們相信，從持續的角度來看，我們可以將利潤率維持在 36% 至 37% 的範圍內。我們努力將其保持在高端，甚至超越它，我們本季做到了。但我們有信心，我們可以在全年保持利潤率在 36% 至 37% 的範圍內，具體取決於我們全年的產品組合和客戶組合。

Okay. If I can fit two other things. International, you are 200,000 boxes again for the second straight quarter, in that range actually, at least. What happened internationally and how sustainable is that -- is the growth in international boxes? Or will that fall down?

好的。如果我能裝下另外兩件東西。國際方面，你們連續第二季的銷售再次達到 20 萬箱，實際上至少在這個範圍內。國際上發生了什麼事？這種現象的可持續性如何？國際貨櫃數量是否有增加？或者它會掉下來嗎？

One of the things we said for some period of time, diversifying our customer base is critical and that, because that gives us a much broader base to grow into. And, of course, two key areas that we're very pleased with this quarter is the beginning now of our telephone revenue stream, with the revenue recognition of SBC and the fact that they're just getting started on that project. Of course, the other area we focused a lot of other attention on is our international business and this has been the best quarter we've ever had.

我們曾經說過，實現客戶群多元化至關重要，因為這能為我們的成長提供更廣泛的基礎。當然，本季讓我們非常滿意的兩個關鍵領域是：我們的電話收入流現已開始，SBC 的收入確認以及他們剛開始該​​專案的事實。當然，我們重點關注的另一個領域是我們的國際業務，這是我們有史以來最好的一個季度。

So that level is sustainable.

所以這個水平是可持續的。

Unless we don't see the international market retracting over the long hall. Obviously there's customer-by-customer situations, but we believe that it's going a very important focus of our Company.

除非我們沒有看到國際市場在長廊上回縮。顯然，每個客戶的情況都不一樣，但我們相信這是我們公司的一個非常重要的焦點。

With regards specifically to your question of shipments of set-tops, you were right. We did ship about 250,000 set-tops. If my memory serves me correct, that compares to about 178,000 units last quarter. So it was an increase. There was an increase in both the Telewest shipments and 4200DVB. They're rolling out and until they start to significantly roll out DVRs, during 2006, they will continue to need the 4200DVB. And in Canada, the both Rogers and Videotron are rolling out digital set-tops at a very good rate, and we are benefiting from that. But the--in Canada, the tendency is, as we've indicated several quarters before, that that take rate seems to be a little bit lumpy. They take a lot of units one quarter and then they tone it down the next quarter.

具體到您提出的機上盒出貨量的問題，您說得對。我們確實運送了大約 250,000 台機上盒。如果我沒記錯的話，上個季度的銷量約為 178,000 台。所以這是一個增長。Telewest 和 4200DVB 的出貨量均有所增加。他們正在大力推廣 DVR，直到 2006 年開始大規模推廣 DVR，他們將繼續需要 4200DVB。在加拿大，Rogers 和 Videotron 都在以非常快的速度推出數位機上盒，我們從中受益匪淺。但在加拿大，正如我們之前幾季所指出的那樣，這種趨勢是，接受率似乎有點不穩定。他們在一個季度中佔用大量單位，然後在下個季度減少佔用數量。

So I think the answer to your question is, yes, we believe that international sales of set-tops have the opportunity to continue at a fairly high rate, with the one caution that in Canada, that's a little more lumpier than might be indicated by, hey, we'll maintain this exact rate going forward. Okay?

所以我認為你問題的答案是，是的，我們相信機上盒的國際銷售有機會繼續保持相當高的速度，但需要注意的是，在加拿大，這一速度可能比預想的要不穩定一些，嘿，我們將繼續保持這個速度。好的？

Thanks. I'll let someone else ask some questions.

謝謝。我會讓其他人問一些問題。

Next question is coming from Todd Koffman. Please announce your affiliation and pose your question.

下一個問題來自托德·科夫曼。請表明您的所屬機構並提出您的問題。

Raymond James. Specific to the DVR shipments, there's been no seasonality in this very successful product line in the last few years, despite the commentary about seasonal spending patterns. This has been an incredibly successful product for you and it has been up and to the right consistently the last couple of years. This is the first quarter we've seen a sequential decline and although you cited a pretty nice backlog, 453, a few quarters ago you had a backlog you reported almost 500,000 units of DVR. My question is what's going on with DVR product cycle, regardless of whether it's high definition DVR or standard definition DVR, are we sort of hitting, maybe, a penetration, maybe this thing won't be in 50% at all households, maybe it flattens out in 30% or something like that?

雷蒙德詹姆斯。具體到 DVR 的出貨量，儘管有關於季節性消費模式的評論，但在過去幾年中，這條非常成功的產品線並沒有出現季節性。對您來說，這是一款非常成功的產品，並且在過去幾年中保持良好的發展勢頭。這是我們看到連續下降的第一個季度，雖然您提到了相當不錯的積壓訂單量，453，但幾個季度前您報告的積壓訂單量接近 500,000 台 DVR。我的問題是，DVR 產品週期是怎樣的，不管它是高清 DVR 還是標清 DVR，我們是否達到了某種滲透率，也許這種產品不會在所有家庭中達到 50%，也許會穩定在 30% 左右，或者類似的水平？

You go through it customer by customer, and what you find is in certain cases, customers take some one quarter and they may have less the next quarter and may build up the following quarter. If you look at it as we talked about earlier, in certain cases, you know, like in Canada, Wally talked about the fact that they tended to take a lot in one quarter and a little bit less the next quarter. I think if you kind of go look through it and you look at the penetration rate of the people that are taking a lot of these things, which you kind of find out is that we haven't seen any major shifts in this market or saturation point. So we don't see it by the looking at the numbers that, they're, quote some kind of saturation factor going up.

你逐一檢查每個客戶，你會發現，在某些情況下，客戶在一個季度拿了一些，下一個季度可能拿的少了，再下一個季度可能就多了。如果你按照我們之前討論的那樣來看，在某些情況下，你知道，比如在加拿大，沃利談到這樣一個事實，他們往往在一個季度拿很多錢，而在下一個季度拿少一點錢。我認為，如果你仔細觀察一下，看看那些使用這些東西的人的滲透率，你會發現我們還沒有看到這個市場或飽和點發生任何重大轉變。因此，透過觀察這些數字，我們看不到飽和度因素正在上升。

Could it be that maybe at this level or maybe slightly above this level is going to be sort of where the shipment levels just flatten out or do you still think this thing is on a pretty healthy upward ramp going forward?

有沒有可能在這個水平或略高於這個水平時，出貨量就會趨於平穩，或者您是否仍然認為這種情況會在未來相當健康地上升？

No, I think relative to, you know, whether it contin -- obviously it is a lot easier to take a 50,000 number and double it than it is to take a 400, 450,000 number and double it. So just the very magnitude of where we are, (inaudible) the percentage gains that we've had in the past. So I think the other part we've talked about is the necessity to continue to expand our business internationally. And of course a number of these things that we've talked about at international set-top contracts, really relate to DVR business.

不，我認為相對於它是否連續——顯然，將 50,000 的數字翻倍比將 400,450,000 的數字翻倍要容易得多。因此，就我們目前所處的水平而言，（聽不清楚）我們過去所取得的百分比成長。所以我認為我們討論的另一部分是繼續在國際上擴展業務的必要性。當然，我們在國際機上盒合約中討論的許多事情實際上都與 DVR 業務有關。

So these are development of DVRs, so I think just to some extent you may -- you may, and I'm not going to forecast the future, you may start to see the percentage, obviously, slowing down. Whether it reaches a steady, sta -- stage or not, we'll just have to kind of see whether it continues to migrate up. I don't think we can forecast that, but clearly the way to expand the number is by expanding this product across the international base and, of course, as the telephone companies enter the market, they're going to need DVR products, as well. So the international and telephone expansion also is the key expansion to the DVR.

這些都是 DVR 的發展，所以我認為在某種程度上你可能會——你可能，而且我不會預測未來，你可能會開始看到這個百分比明顯放緩。無論它是否達到穩定、靜止的階段，我們只需觀察它是否會繼續往上移。我認為我們無法預測這一點，但顯然擴大數量的方法是透過在國際範圍內擴展該產品，當然，隨著電話公司進入市場，他們也將需要 DVR 產品。因此國際和電話擴展也是DVR的重點擴展。

Thank you. Very helpful.

謝謝。非常有幫助。

Next question is coming from Rob Sanderson. Please announce your affiliation and pose your question.

下一個問題來自 Rob Sanderson。請表明您的所屬機構並提出您的問題。

Hi, good afternoon. American Technology Research. I have a question for Michael. Maybe -- you gave us an illustration of DVR penetration. I think you said 17% of digital, overall, and 35% in top market. Could you give us--could you expand on that illustration, if you have the data? What's your estimate of digital penetration overall in Scientific-Atlanta systems and digital penetration in top market and maybe that'll be helpful in answering DVR-related questions?

嗨，下午好。美國技術研究。我有一個問題想問麥可。也許——您給我們提供了 DVR 滲透的例子。我認為您說的是整體數位市場佔 17%，頂級市場佔 35%。如果您有數據，您能詳細說明一下這個例子嗎？您對科學亞特蘭大系統的整體數位滲透率以及頂級市場的數位滲透率的估計是多少？這也許有助於回答與 DVR 相關的問題？

I can help you a little of it and Michael can add to it. If you look at cable television, they're at the highest part, they have not reported their numbers this quarter, but I think about a quarter and a half ago, they were at 54%. If you look at it, their penetration of analog set-tops were up over 60%. So the fact that they're getting digital up in this range was also done with advanced analog, They're putting in a couple of boxes per house, so the additional outlets are very important. If you look at Time Warner, they're up around 50%. If you look at others, I think they're in the 40 to 50% range. So I'd say on average it probably in the 45 to 50% range.

我可以幫你一點忙，麥可也可以補充一些。如果你看有線電視，他們處於最高水平，他們本季度沒有報告他們的數據，但我認為大約一個半季度前，他們的比例為 54%。如果你看一下，你會發現他們的模擬機上盒普及率已經上升了 60% 以上。因此，他們在這個範圍內實現數位化的事實也是透過先進的類比技術實現的，他們在每個房子裡放置幾個盒子，因此額外的插座非常重要。如果你看看時代華納，它的股價上漲了 50% 左右。如果你看看其他人，我認為他們的比例在 40% 到 50% 之間。所以我認為平均而言大概在 45% 到 50% 的範圍內。

And of course, one of the issues for all of the cable operators is, as the telephone people come and as the satellite guys operate a digital systems across the board, what you find is that the question will be is how do you ultimately get to all-digital systems and do you migrate this up over a period of time and then switch out the rest? But, you know, I think today you'd say the average is around 45%. You get box penetration anywhere from 1-3, to 2-0, depending upon what -- which one you want and, of course, I think most people are looking for ways of how do you get to mostly digital systems? Michael, would you like to add to that?

當然，所有有線電視營運商面臨的一個問題是，隨著電話營運商和衛星營運商全面運營數位系統，你會發現問題是如何最終實現全數位系統，是否需要在一段時間內完成遷移，然後再切換其餘系統？但是，你知道，我認為今天你會說平均值約為 45%。您可以獲得從 1-3 到 2-0 的盒子滲透率，具體取決於您想要哪一個，當然，我認為大多數人都在尋找如何進入主要數字系統的方法？邁克爾，你想補充一下嗎？

Just two other comments. The industry is moving towards digital simulcast, and some customers can do that easier than others. One of our Canadian customers have done that and we're now selling them, at least in some of the platforms, all digital platforms, and they're trying to figure out how to actually market -- I won't call them low-end digital services, but entry level digital services to those analog subs so they can continue the process of trying to get those analog channels back and also be in a position to offer analog customers a much more exciting set of products and services. So that activity is going on, it's just starting.

僅剩另外兩則評論。該行業正在向數位同步廣播邁進，有些客戶比其他客戶更容易做到這一點。我們的一個加拿大客戶已經這樣做了，我們現在正在向他們銷售，至少在某些平台上，所有數位平台上，他們正在試圖弄清楚如何實際行銷 - 我不會稱它們為低端數位服務，而是向那些模擬用戶提供入門級數位服務，以便他們可以繼續嘗試恢復那些模擬頻道，並能夠為模擬客戶提供更令人興奮的產品和服務。所以這項活動正在進行中，它才剛開始。

I think on the DVR side, if you were to take Cablevision, they're actually in single-digits at this point in time. So they're just sort of starting and we sort of predicted that because they had all of their capital focused on trying to catch-up, if you will, to get digital penetration of which they have done a great job. The other thing we've talked about before and we're starting to see is really our replacement cycle begins. And we first started shipping these boxes back in '98, I believe, so we're really looking at some products that just, for whatever reason, is going to have to come out of the field and we're seeing that start to be a component of our modeling that we do.

我認為在 DVR 方面，如果你以 Cablevision 為例，他們目前的市佔率其實只有個位數。所以他們才剛起步，我們預測到，因為他們把所有的資本都集中在試圖追趕上，如果你願意的話，去實現數字滲透，他們在這方面做得很好。我們之前討論過的另一件事，我們開始看到的是我們的更換週期確實開始了。我記得我們是在 1998 年首次開始運送這些箱子的，所以我們真正關注的是一些無論出於什麼原因都必須從現場運出的產品，我們看到這些產品開始成為我們所做建模的一個組成部分。

That's all helpful but, Michael, I guess what I'm really trying to get at is, obviously, that top system 35%, that's not Cablevision, but is that an unusual system or is that more reflective of what the, you know, overall demand is there? What is a digital penetration in that system where you're at 35?

這些都很有幫助，但是，邁克爾，我想我真正想要了解的是，顯然，頂級系統 35%，這不是 Cablevision，但這是一個不尋常的系統還是更能反映那裡的整體需求？您 35 歲時該系統的數位滲透率是多少？

Probably between 45 and 50, would be my guess.

我猜大概在 45 到 50 之間。

So it's not really unusual from the overall market?

那麼從整體市場來看，這並不罕見嗎？

No, we don't -- we don't -- I know this is a controversial subject and so we're all going to spend a lot of time on it and it's very important, but all of the primary research we have done really suggests that plain old cable subscribers, if you don't make them commit for a year, you don't make them buy a $200 device and don't make them pay for three months and get some kind of hooks on the product, this just looks like plain old cable, and that's what we've seen in the deployment rates. It looks very much like what we saw when we originally went to digital and we're just have to keep watching that, but that is what the data says. If there is any throttling, it typically is centered around marketing campaigns and marketing budgets as opposed to the desire of the consumer to have the product. We have to, obviously, look at the competition. The competition continues to push hard and in these telco markets, It's clear to me, at least, that the first set-top in that home is not going to be an entry level set-top. It's going to be a DVR HD set-top, for the most part.

不，我們不會——我們不會——我知道這是一個有爭議的話題，所以我們都會花很多時間在這上面，這非常重要，但我們所做的所有主要研究都表明，對於普通的有線電視用戶來說，如果你不讓他們承諾一年，你就不會讓他們購買 200 美元的設備，也不會讓他們支付在未來的電視上，也不會讓他們對我們產生的有線，這就是為什麼我們看起來在電視中看到的普通率也不會讓他們對我們產生的有線，這就是為什麼我們在這方面看到的電視機一樣依賴。它看起來非常像我們最初進入數位化時代時所看到的，我們只需要繼續觀察，但這就是數據所顯示的。如果有任何限制，通常是圍繞行銷活動和行銷預算，而不是消費者對產品的渴望。顯然，我們必須關注競爭。競爭持續激烈，在這些電信市場中，至少對我來說很清楚，每個家庭中的第一個機上盒不會是入門級機上盒。在大多數情況下，它將是一個 DVR 高清機上盒。

That answers it. Thanks a lot, guys.

這回答了問題。非常感謝大家。

Next question is coming from Anton Wahlman. Please announce your affiliation and pose your question.

下一個問題來自安東·沃爾曼。請表明您的所屬機構並提出您的問題。

It's Needham & Company. Michael, two issues that I haven't heard you talk about for a while. First of all, this whole overlay and replacement business, it's now between a year or two ago since you basically did the stuff in Houston and a few other places at Time Warner and some stuff going on in Tucson, Arizona. Is there--are we just waiting for the big Adelphia overlay swap-out, whatever you want to call it, and the repercussions of that merger happening, or is it -- do you expect that there will be other places as well where this will be occurring or is that an era that is now over?

這是 Needham & Company。邁克爾，這兩個問題我已經有一段時間沒聽到你談論了。首先，整個覆蓋和替換業務，現在已經是一兩年前了，因為你基本上在休斯頓和時代華納的其他幾個地方做了這些事情，還有一些在亞利桑那州圖森進行的事情。我們是否只是在等待大型 Adelphia 覆蓋交換（無論您想怎麼稱呼它）以及合併發生的影響，或者您是否預計其他地方也會發生這種情況，或者這個時代已經結束了？

It is an initiative for us in our fiscal year and we have based in our plans some success there and we are, you know, actively engaged in a number of opportunities. The other thing, though, that's coming along as time passes, this happens, right? As time passes the next generation sort of activities, which sort of accomplish the same thing with a maybe different method are also coming to the horizon. So we have those kind of initiatives we're work on, as well. I think the new news, and I don't have the numbers, but what we have seen at overlay sites is instead of focused on the DVR product, they have been taking other products and that's really the good vote of confidence in not only our DVR product, but our Company.

這是我們財政年度的一項舉措，我們的計劃已經取得了一些成功，我們正在積極參與許多機會。然而，隨著時間的推移，另一件事會發生，對嗎？隨著時間的推移，下一代活動也將出現，這些活動可能會使用不同的方法完成相同的事情。我們也正在進行這類措施。我認為這是新的消息，雖然我沒有具體數字，但我們在覆蓋網站上看到的不是專注於 DVR 產品，而是一直在採用其他產品，這不僅對我們的 DVR 產品，而且對我們公司都投下了良好的信任票。

So meaning just non-DVR set-tops?

那麼這僅意味著非 DVR 機上盒嗎？

Right.

正確的。

Okay. The other thing is -- another issue you haven't talked much about recently, I think last December. Time Warner announced first multi-room being launched in Minneapolis or something like that. Where do we stand with that now? Whether at that customer or the market more broadly? Has that moved forward and is there any shift in technology there, whether [t-moka] or some other in-home networking and multimedia technology that will essentially replace it and, therefore, people might have waited and can you fill us in on that?

好的。另一件事是——您最近沒有談論過的另一個問題，我想是去年 12 月。時代華納宣布將在明尼阿波利斯或類似的地方推出首個多房間系統。我們現在的處境如何？無論是針對該客戶還是更廣大的市場？這方面是否有進展？技術方面是否有任何變化？無論是 [t-moka] 還是其他一些家庭網路和多媒體技術，它們都會從根本上取代它，因此，人們可能還要等待，您能向我們介紹一下嗎？

Yes, the product has done really well from a standpoint it works; We've won some awards for it. It's quite innovative. It's probably -- I'm looking at a list here. It's probably in about, you know, 20 sites, but it's not deployed heavily and the reason why is that the sites, which is -- we get benefit out of this in our other product line, but the sites are using their operational people who do installations to actually install to the voice product. So when they look, they sort look at multi-room, very cool, the consumer will get it but not sure how much more money I'm going to make over what we're already doing and we do have systems that put multiple DVR's in the house, which is also just fine with us. But they really focused on -- on using that talent to do the voice rollout. What we are seeing in the other accounts is HP&A-3 over co-ax and there our IP product lines supports that. We also have co-ax, the use of that bridges that we sell and people are using in those applications.

是的，從產品功能的角度來看，它確實表現良好； 我們因此贏得了一些獎項。這相當有創意。可能是——我正在看這裡的清單。它可能在大約 20 個站點中，但部署並不廣泛，原因是這些站點 - 我們在其他產品線中從中受益，但這些站點正在使用負責安裝的運營人員來實際安裝語音產品。因此，當他們查看時，他們會查看多房間，這非常酷，消費者會得到它，但不確定我將比我們已經做的多賺多少錢，而且我們確實有在家裡放置多個 DVR 的系統，這對我們來說也很好。但他們真正關注的是——利用人才進行語音推廣。我們在其他帳戶中看到的是同軸電纜上的 HP&A-3，並且我們的 IP 產品線支援這一點。我們還提供同軸電纜，以及我們銷售的橋接器，人們正在這些應用中使用它們。

Okay. Just a final item.

好的。這只是最後一項。

Anton, part of the trade-off, obviously, is you want to spend less time in the house and give them multiple DVRs or do you want to go in and spend a little more time. And I think, as they're pushed to roll out new products like voice, I think they're electing to just give them more DVRs.

安東，顯然，權衡的一部分是你願意花更少的時間在家裡並給他們多個 DVR，還是願意進去花更多的時間。我認為，當他們被迫推出語音等新產品時，他們會選擇為他們提供更多的 DVR。

Hey, better for you, right?

嘿，這對你來說更好，對吧？

We gave it to control the capital in the house but the other option, obviously, is better for us.

我們賦予它控制房屋資本的權利，但顯然另一個選擇對我們來說更好。

Do you think the telephone companies get it as far as the DVR is concerned? Telephone companies have traditionally had a lot of centralized thinking there and tend to talk about network PVR, and if they can at all avoid putting a big expensive box in somebody's house, (inaudible) there. What is your sense of their thinking, not specifically to any one guy like SBC, but far more broader?

您認為就 DVR 而言，電話公司了解情況嗎？傳統上，電話公司在這方面有很多集中式的思考，並且傾向於談論網路 PVR，以及他們是否能避免在某人的家中放置一個昂貴的大盒子，（聽不清楚）在那裡。您如何看待他們的想法？不是針對 SBC 這樣的某個人，而是針對更廣大的人？

I think couple of things. One is that they do clearly get it and they understand the adoption rates of DVRs. But I think the other one people that need to understand is that if this is the first functionality of what distributed storage does for you. And I think if you look through and look at both cable plans and telephone plans, is what people really want to move toward is first bundled services and then integrated services. So, over time the way that you're going to integrate these services across these devices is basically by working it into more of the media center products, the home controllers and that.

我想到幾件事。一是他們確實清楚地了解這一點，並且他們知道 DVR 的採用率。但我認為人們需要了解的另一個是，這是否是分散式儲存為您實現的第一個功能。我認為，如果你仔細研究有線電視計劃和電話計劃，你會發現人們真正想要的是首先是捆綁服務，然後是綜合服務。因此，隨著時間的推移，將這些服務整合到這些設備上的方式基本上是將其融入更多的媒體中心產品、家庭控制器等。

So, you know, what we're really seeing with DVRs is that we're seeing the first-generation of where you take the product. And, of course, we're working on a lot of silicon technologies and other things that will continue to put significant functionality into these products. Of course, the DVD burner is the first one. But there's a lot of stuff you can do. When you think of DVRs, you shouldn't think of it in terms of the current function. It is basically a platform that we will be able to extend for many years in the future. So, ultimately, you continue to add functionality, you add more storage, you add more tuners, you add multi-room to it, you add DVD burners. And over time you add the ability to plug in other devices, transfer things from your PC, or be able to program it from your cell phone. So it's really the platform that goes forward. And I think you need to think of this as a platform, and this is really the first-generation of a product. It's just in its initial stages.

所以，您知道，我們在 DVR 上看到的是該產品的第一代產品。當然，我們正在研究許多矽技術和其他技術，這些技術將繼續為這些產品增添重要的功能。當然，DVD燒錄機是第一台。但你可以做很多事。當您考慮 DVR 時，您不應該從當前功能的角度來考慮它。它基本上是一個我們能夠在未來多年內擴展的平台。因此，最終，您將繼續添加功能，添加更多存儲空間，添加更多調諧器，添加多房間功能，添加 DVD 刻錄機。隨著時間的推移，您可以添加插入其他裝置、從 PC 傳輸內容或透過手機進行程式設計的功能。所以它確實是一個向前發展的平台。我認為你需要將其視為一個平台，而這實際上是第一代產品。它才剛剛處於初始階段。

Okey-dokey. Thank you.

好的。謝謝。

Next question is coming from April Horace. Please announce your affiliation and pose your question.

下一個問題來自 April Horace。請表明您的所屬機構並提出您的問題。

Hi, good afternoon. It's HoeferArnett. A couple quick, you know, housekeeping questions. One, who were your 10% customers? Two, with respect to J com, you said there is no deadline, but is it a question of when, and not if? And then I have a couple of other follow-ups.

嗨，下午好。我是 HoeferArnett。您知道，有幾個簡單的日常問題。一、你的10%客戶是誰？第二，關於 J com，您說沒有最後期限，但這是何時而不是是否的問題？然後我還有一些其他的後續問題。

I'll do the first one, you do the other. Time Warner Cablevision.

我做第一個，你做另一個。時代華納有線電視。

Your second question was with regard to -- could you reask the question associated with J com?

您的第二個問題是關於—您能重新問一下與 J com 相關的問題嗎？

You talk about J com and and that there's no deadline. But is there any concern that it's more of an if versus a when?

您談到 J com 並且沒有截止日期。但是否有人擔心這更像是一個「如果」而不是「何時」的問題？

Well, let me try that. I think [Mr. Marazume] spoke at a conference recently in New York and he talked about the relationship between the two companies. I think you can go dig that out and get the customer's side of it. I think one of the things you find is that the market that they operate in is competitive, it is moving. It's not like we couldn't qualify what we originally started with, but, you know, as being the an additional entry into their business, what we really need to do is--we're moving against the moving set of targets and we understand that customers' competitive environment is changing and we've got to continue to move along with that. So, you know, not setting a hard core date is a little bit because the functionality is moving at the same time and it's == how to you intersect with the right functionality at the right time.

好吧，讓我試試看。我認為[Mr.Marazume 最近在紐約的一次會議上發表了講話，談到了兩家公司之間的關係。我認為你可以深入挖掘這一點並了解客戶的看法。我認為你會發現他們所處的市場競爭激烈，瞬息萬變。這並不是說我們不能達到我們最初開始的目標，但是，你知道，作為進入他們業務的附加入口，我們真正需要做的是 - 我們正在朝著不斷變化的目標前進，我們明白客戶的競爭環境正在發生變化，我們必須繼續隨之前進。所以，你知道，不設定一個硬核日期有點因為功能是同時移動的，而且它==如何在正確的時間與正確的功能相交。

And then with respect to Echostar's introducing a new DVR to go, as well as (inaudible) Dish One, are you seeing any interest in the DVR to go kind of scenario from any other of your customers? And then can you give us on update your build-out for the plant capacity of going from 1.3 million set-tops?

然後關於 Echostar 推出的新款 DVR，以及（聽不清楚）Dish One，您是否看到其他客戶對 DVR 這類產品感興趣？然後，您能否向我們介紹一下從 130 萬台機上盒開始的工廠產能建設？

Well, I think one of the things is -- and I'll let Michael do this -- is I talked about, that this is really a platform under which you will basically access and store lot of your services. So clearly, if you look at the focus of a lot of the consumer electronic people, they're really wanting to move toward, you know, being able to take your content with you. And, obviously, you saw the new video iPod, you see products being talked about by both Sony and Samsung and all consumer electronics. That's a functionality that you're going to want to put into it, you know. And the other thing I think is what we all know people respond to competition. So the fact that one person introduces it means that other people are going to move in that direction and so I'll let Michael talk about the specifics, but the answer is yes. We've talked about our customers about this for quite a while.

嗯，我認為其中一件事是——我讓邁克爾來做這件事——我說過，這實際上是一個平台，你基本上可以在這個平台上存取和儲存你的許多服務。所以很明顯，如果你觀察許多消費性電子人士的關注點，你會發現他們真正想要的是能夠隨身攜帶內容。顯然，您看到了新的視訊 iPod，看到了索尼和三星以及所有消費性電子產品都在談論的產品。您知道，這是您想要新增的功能。我認為另一件事是我們都知道人們對競爭做出反應。因此，一個人引入它意味著其他人也會朝這個方向發展，所以我會讓邁克爾談論具體細節，但答案是肯定的。我們已經和我們的客戶討論這個問題有一段時間了。

Well, obviously the first step of video to go is the DVD burner product and they're actually three modes in the product we have, but one of them basically will work with any portable DVD player in the car or whatever. We have been working, I think, I probably mentioned in the past, we have been working with a major customer, major consumer electronics company to interface the Explorer 8,000 products in a very secure way to the personal media device, so when that contents transferred there is no content issues that people are worried about. And so we are working on that. I think lots of excitement, lots of interest, we're all spending time on it. I think it'll take a while to sort out exactly how those products get to market and how they're supported, but we are definitely working on it. With regard to the 1.3-unit -- million-unit capacity for set-tops, that expansion has two phases. One is a productivity improvement, in which we're working on the testing of our boxes to reduce the amount of test on them, therefore, increase the capacity. The second one is adding new equipment and we expect to have both of those completed this quarter.

嗯，顯然視訊傳輸的第一步是 DVD 燒錄機產品，實際上我們的產品有三種模式，但其中一種基本上可以與汽車或其他設備上的任何便攜式 DVD 播放器配合使用。我想，我可能在過去提到過，我們一直在努力與一個主要客戶、一家大型消費電子公司合作，以非常安全的方式將 Explorer 8,000 產品連接到個人媒體設備，因此當傳輸內容時，不會出現人們擔心的內容問題。所以我們正在努力。我認為有很多令人興奮的事情，很多的興趣，我們都花了很多時間在這上面。我認為需要一段時間才能弄清楚這些產品究竟如何​​進入市場以及如何獲得支持，但我們肯定會努力的。關於130萬台機上盒產能，擴建分為兩個階段。一是生產力的提高，我們正在對機器進行測試，以減少測試量，從而提高產能。第二個是新增設備，我們預計這兩項工作都將在本季完成。

And then, last question, I know you said that you'll have this situation about cash and repurchasing stock done in the second this year. Can you give us any color as to what's holding it up?

然後，最後一個問題，我知道您說過您將在今年第二季度完成有關現金和回購股票的情況。您能告訴我們是什麼阻礙了這一進程嗎？

What I said is we would resolve the issues. You know, we basically report share repurchases after we do them. And, you know, since it is material un-public information, I obviously can't make it public.

我說的是我們會解決這些問題。你知道，我們基本上在股票回購後都會進行報告。而且，你知道，由於這是重大非公開訊息，我顯然不能將其公開。

Okay. Thanks. Appreciate it.

好的。謝謝。非常感謝。

The next question is coming from Bob Rysis. Please announce your affiliation and pose your question.

下一個問題來自 Bob Rysis。請表明您的所屬機構並提出您的問題。

Hi, it's Bob Rysis from Bear Asset Management. I got some easy questions. Generally, you guys, I know you don't give guidance, per se, by numbers, but it's generally the recent quarter just happens, your weakest quarters, one of your weakest and you build on that. Is there any reason to expect seasonality would be different this time, either worse, better or what have you? Can you comment on that?

大家好，我是貝爾資產管理公司的 Bob Rysis。我有一些簡單的問題。一般來說，我知道你們不會從數字本身給出指導，但一般來說，最近一個季度是你們最弱的一個季度，你們會在此基礎上繼續努力。是否有理由預期這次的季節性會有所不同，無論是更糟、更好還是其他情況？您能對此發表評論嗎？

We do not have any information that would indicate a variance from past patterns at this stage of the game.

我們沒有任何資訊顯示遊戲的這個階段與過去的模式有所不同。

Okay. So what I'm reading into is that I'm not asking you for a point number, but you would expect the current quarter, the December quarter to be better than the September quarter?

好的。所以我想說的是，我不是問你一個點數，而是你是否預計當前季度，即 12 月季度會比 9 月季度更好？

I think we better stop where we are.

我認為我們最好就此打住。

Okay. Well, as much help as you can give shareholders is --

好的。嗯，你能給股東的幫助是──

I understand, we --

我明白，我們——

Okay.

好的。

We want to do it but we don't want to extrapolate the past to the future.

我們想這樣做，但我們不想用過去來推斷未來。

Okay. The, the second thing I wanted to ask you, I understand what you said in the last paragraph regarding, you know, stock buy-back or using -- At one conference you guys said that buying back stock was the primary purpose -- what was the number one thing that you would do with your cash. Is that still reasonable expectation?

好的。我想問您的第二件事是，我理解您在最後一段中所說的關於股票回購或使用的內容——在一次會議上，你們說回購股票是主要目的——您用現金會做的第一件事是什麼。這仍然是合理的預期嗎？

The answer to that is yes, we obviously know that cash set word is not the best use. I will clearly say, you know, there's been rumors that we're going to make some big acquisition, but we aren't actively engaged in anything at this time regarding that. And we've talked to our major shareholders and they clearly believe that we -- we would basically -- they would prefer to have a stock buy-back over a dividend. So I think if you look at it, if we could find the right strategic acquisition that would make sense for investment of some of this capital, we would do that.

答案是肯定的，我們顯然知道現金設定詞並不是最好的用途。我可以明確地說，你知道，有傳言說我們將進行一些大型收購，但目前我們還沒有積極參與任何與此相關的活動。我們已經與主要股東進行了交談，他們清楚地相信，他們更願意回購股票而不是派發股息。所以我認為，如果我們能夠找到適合投資部分資本的正確策略收購，我們就會這麼做。

However, you know, this thing is -- especially at the subscriber level is kind of in between us and our competition, and we aren't going to buy them and we are not going to buy us, the way you'd see that. So the acquisitions, generally, are more limited. We've talked about it as we build our customer base up in the telephone side that we would look at potential synergistic acquisitions that we could make as we build a telephone customer base up. But I would clearly tell you at this stage we are not looking at very large acquisitions. We would also consider international acquisitions if we can find them. But, once again, they wouldn't come into the large categories, so we clearly know we have significant more cash that is needed to support our business. And we believe that the stock buy-back obviously would be our choice of how to return it to the shareholders versus the dividends.

然而，你知道，這一點——特別是在用戶層面，有點像是我們和競爭對手之間的差距，我們不會收購他們的產品，我們也不會收購我們自己，正如你所看到的那樣。因此，整體而言，收購較為有限。我們在電話方面建立客戶群時曾討論過這個問題，我們會考慮在建立電話客戶群的過程中可以進行的潛在協同收購。但我可以明確地告訴你們，現階段我們不會考慮進行大規模收購。如果可以的話，我們也會考慮國際收購。但是，再一次，它們不會進入大類別，所以我們清楚地知道我們需要更多的現金來支持我們的業務。我們認為，股票回購顯然是我們選擇如何向股東返還股利的方式。

Is there any kind of hub you can do, what you consider is a prudent amount of cash to have on the balance sheet?

您可以做什麼樣的中心，您認為資產負債表上應該有多少現金是合理的？

We've got analysis from business all the way 20% debt to having cash on the balance sheet. We obviously generate cash, so we're not cash-user. So I think it would be whatever we would consider we would probably want to hold back for acquisitions.

我們對企業的 20% 債務到資產負債表上的現金進行了分析。我們顯然會產生現金，所以我們不是現金使用者。所以我認為無論我們考慮什麼，我們都可能希望保留這些以備收購。

Okay. Can you give us any hand on that or is that--

好的。你能幫我們解決這個問題嗎？或者——

In the past we have indicated that to run the ongoing business and to -- obviously in business cycles there are both ups and downs associated with cash-flow, although we've been on an up for about four or five years, but given our size and so forth, we do not believe that we need more than $500 million for ongoing operations.

過去我們曾表示，為了經營持續經營業務，顯然在商業週期中，現金流會有起伏，儘管我們已經連續四五年處於上升趨勢，但考慮到我們的規模等，我們認為持續經營不需要超過 5 億美元的資金。

Okay. That's what I wanted. Thanks.

好的。這就是我想要的。謝謝。

Next question is coming from Jason Ader. Please state your affiliation and pose your question.

下一個問題來自 Jason Ader。請說明您的所屬機構並提出您的問題。

Yes, Thomas Weisel Partners. Thanks. Just a few questions. First, Wally, just some housekeeping on the options expense. You said 8.3 million went into OpEx. Is that right?

是的，Thomas Weisel Partners。謝謝。僅有幾個問題。首先，沃利，我只是想對選擇權費用做一些整理。您說 830 萬美元用於營運支出。是嗎？

That is correct.

沒錯。

Could you break that out for us into SG&A and R&D, just so we have historical comparisons on the organic R&D and SG&A?

您能否將其分解為銷售、一般及行政費用和研發費用，以便我們對有機研發費用和銷售、一般及行政費用進行歷史比較？

The break-out is approximately $2 million in R & D and $6 million in SG&A.

其中研發費用約 200 萬美元，銷售、一般及行政費用約 600 萬美元。

Okay, thanks. And then you said approximately 1.4 million included in cost of sales?

好的，謝謝。然後您說銷售成本包含了約 140 萬？

That is correct.

沒錯。

Okay. So I guess technically if we wanted to show pro forma without options expense, then you would get some type of boost to the gross margin. Is that the right way to think about it?

好的。因此，我想從技術上講，如果我們想要顯示不包含選擇權費用的備考數據，那麼毛利率就會得到某種程度的提升。這是正確的思考方式嗎？

That is correct.

沒錯。

Okay. All right. I just -- with this options expensing it is making the numbers a little bit more hard to compare.

好的。好的。我只是——由於這些選項的費用，數字變得更難比較。

It is also very difficult to calculate.

計算起來也非常困難。

Yes. All right. So the next question I had, and I think I don't want to beat a dead horse here, but it does seem like the business was down more than normal, sequentially. You know, to what would you attribute that? I know you've had declines over the last three years, I went back and checked. It is usually a few percent. If you take out SBC being an incremental driver here in the quarter, it would be down about 10%. So is there any explanation or anything you can help us to understand that, or is it just kind of a timing issue?

是的。好的。所以我的下一個問題是，雖然我不想在這裡重複老生常談，但看起來業務確實比正常情況下下降得更多，而且是連續的。你知道，你認為這是什麼原因造成的嗎？我知道過去三年你的表現一直在下滑，我回去檢查了一下。通常為百分之幾。如果將 SBC 作為本季的增量驅動因素去除，其銷售額將下降約 10%。那麼，您能提供任何解釋或資訊來幫助我們理解這一點嗎？或者這只是一個時間問題？

I think it is timing as we talked about. Sometimes people take it little early, sometimes they let them bleed down a little bit on the inventory and they call you up in a panic mode and want it right away. Best we can tell, it is timing.

我認為正如我們討論的那樣，時機已經成熟。有時人們會提前一點拿走它，有時他們會讓庫存稍微減少一點，然後他們會在恐慌模式下打電話給你並立即想要它。我們所能說的最好的就是時機。

All right. And then the Time Warner order, that you talked about, I think you said 125 million. Is that -- you've already booked that in the quarter?

好的。然後您談到的時代華納訂單，我想您說的是 1.25 億美元。這是—您已經在本季預訂了？

It'll be booked this coming quarter.

下個季度將會被預訂。

Okay. Is that normal? I am trying to remember the history. Is that sort of a normal 6-month order for them?

好的。這樣正常嗎？我正在努力回想歷史。對他們來說，這是正常的 6 個月訂單嗎？

What we--

我們——

I know you've reported a year ago or year and a half ago in one of the calls you mentioned big call from Time Warner. I'm trying to remember the magnitude.

我知道您在一年前或一年半前的一次電話會議上提到過來自時代華納的重大電話。我試著記住它的嚴重程度。

Let me put it in -- We have a six-month booking policy, okay, and what we said was we had a contract for the calendar year '06. We also indicated that we recorded--we will record this quarter $125 million. We also said that we already had in backlog units that we had booked at the end of September that would also go for this--for the January through March timeframe, so that $125 million represents less than six months and more than three months.

讓我補充一下——我們有一個六個月的預訂政策，好的，我們說過我們有一份 06 日曆年的合約。我們也表示，本季我們將記錄 1.25 億美元。我們還表示，我們在 9 月底預訂的積壓訂單單位也將用於此 - 適用於 1 月至 3 月的時間範圍，因此 1.25 億美元代表少於六個月但多於三個月的時間。

Less than six months. Okay. So that's not--okay. I got you. Less than six months, more than three months. Okay. And then just, last point here, you've -- in the past you've given book-to-bill on DVRs and I guess I could probably figure that out, but--

不到六個月。好的。所以那不是--好吧。我接到你了。少於六個月，多於三個月。好的。最後一點，你過去曾給出過 DVR 的訂單出貨比，我想我大概能弄清楚，但是——

As we indicated, the increase in backlog was 65,000 units. From a unit point of view book to bill was positive 55,000 units during the quarter.

正如我們所指出的，積壓訂單增加了 65,000 台。從單位角度來看，本季訂單出貨比為正 55,000 單位。

Thank you.

謝謝。

Next question is coming from Larry Harris. Please announce your affiliation and then pose your question.

下一個問題來自拉里·哈里斯。請說明您的所屬機構，然後提出您的問題。

Yes, Oppenheimer. Just a couple of quick questions. Capital expenditures in the quarter, was it about $9 million?

是的，奧本海默。只是幾個簡單的問題。本季的資本支出約為 900 萬美元嗎？

It was approximately $10 million, Larry.

大約是 1000 萬美元，拉里。

Okay. And with respect to the $17.7 million of follow-on booking for Project Lightspeed, is something that you think can be quickly turned into revenues or is this something we will see perhaps a little bit of lumpiness where it will be in stages and every couple of quarters or so we'll see some additional quarters recognized?

好的。關於光速計畫的 1770 萬美元後續預訂，您認為這筆錢可以很快轉化為收入嗎？還是說，這筆錢會分階段出現，每隔幾個季度左右，我們會看到一些額外的季度確認？

We will--that $17.7 million represents orders that we expect to ship over the six-month time frame from October 1st to March 31st and a portion of that we expect to have in our sales in the upcoming quarter.

這 1770 萬美元代表我們預計將在 10 月 1 日至 3 月 31 日六個月內發貨的訂單，其中一部分預計將在下一季實現銷售。

Larry, this is Dwight. I will say we will get some revenue in each quarter, but it will be lumpy.

拉里，這是德懷特。我想說的是，我們每季都會獲得一些收入，但收入會比較大。

Understood. Okay, thank you.

明白了。好的，謝謝。

The next question is coming from Scott Coleman. Please announce your affiliation and pose your question.

下一個問題來自斯科特·科爾曼。請表明您的所屬機構並提出您的問題。

Sure, Morgan Stanley. Thanks. Just a quick question on working capital. Wally, I know DSOs tend to go up in the first quarter for you guys, but they went up a little more than I would have expected. Is there anything unusual going on there with a particular customer or was this just the normal course of business?

當然，摩根士丹利。謝謝。這只是關於營運資金的一個簡單問題。沃利，我知道你們的 DSO 在第一季往往會上漲，但漲幅比我預期的要高一些。某個特定客戶是否遇到了什麼不尋常的事情，還是這只是正常的業務流程？

What we indicated at the in the conference call is the script was that we had a larger than normal first-quarter amount of shipments going into last month. And if we have terms of 30-days or larger, and you increase significantly the amount of shipments in the last month of the quarter, then you obviously cannot collect those receivables and that played a big role in determining the increase in day.

我們在電話會議中指出，預計上個月第一季的出貨量將高於正常水準。如果我們的期限為 30 天或更長，並且您在季度的最後一個月大幅增加發貨量，那麼您顯然無法收回這些應收帳款，而這在確定天數增加方面發揮了重要作用。

Okay.

好的。

And a large piece of that -- a portion of that comes with the SBC of $19 million. That acceptance occurred in the last week of the quarter.

其中很大一部分來自 SBC 的 1900 萬美元。該接受發生在本季度的最後一周。

Okay. Does international also carry 30-day terms?

好的。國際也有 30 天的期限嗎？

We have a wide range. That standard terms of the Company is 30 days. We have customers that have 60 days. We have customers that have 45 days. We have customers that have net 10 days, if they pay -- we offer a premium to pay. So it goes from 10 days to 60-plus days.

我們的產品範圍廣泛。本公司的標準年限為30天。我們有 60 天的客戶。我們的客戶有 45 天的時間。我們有一些擁有 10 天淨付款期的客戶，如果他們付款，我們會提供額外付款。因此，時間從 10 天增加到 60 多天。

Okay. And--

好的。和 -

And I would agree with you that international would tend to be on a slightly higher side than the normal U.S. receivable days.

我同意你的觀點，國際應收帳款天數往往會比正常的美國應收帳款天數略高一些。

Okay. And, you know, I know you guys don't like to give guidance, but in terms of options expense, is the amount you announced this quarter a reasonable quarterly expectation for the rest of this fiscal year?

好的。而且，你知道，我知道你們不喜歡給予指導，但就選擇權費用而言，你本季宣布的金額是否是本財年剩餘時間的合理季度預期？

As we indicated during the -- during the script, and Jim reiterated, this is not an easily calculated item. We generally make -- in the past, we have generally granted in our third quarter options, so during our period which you grant options you will have some degree of variability, plus you also have to continue to evaluate things like volatility of the stock and so forth. And so I think -- I think we will have to wait and see how this goes each quarter this year in order to establish a trend pattern. Okay?

正如我們在劇本中所指出的，以及吉姆所重申的，這不是一個容易計算的項目。我們通常會——過去，我們通常在第三季度授予期權，因此在授予期權的期間，您會遇到一定程度的變化，此外，您還必須繼續評估股票波動性等因素。所以我認為——我認為我們必須拭目以待，看看今年每個季度的情況如何，以便確定趨勢模式。好的？

Fair enough. And then one last question. The last couple of quarters you've given us the number of multi-room boxes shipped. Michael addressed some of the fundamental issues around this box right now, but I'm wondering if you would be willing to give us a number for the quarter?

很公平。最後一個問題。在過去幾個季度，您向我們提供了多房間箱子的發貨數量。邁克爾現在解決了這個盒子周圍的一些基本問題，但我想知道您是否願意給我們一個本季的數字？

I will not give you the number for the quarter but cumulatively thus far we have shipped 32,000 multi-room units.

我不會告訴你本季的數字，但到目前為止，我們累計已出貨了 32,000 台多房設備。

Thanks, guys. Thanks for staying on so late.

謝謝大家。感謝您這麼晚還來。

No problem.

沒問題。

Next question comes from Chris Rowen. Please announce your affiliation and pose your question.

下一個問題來自克里斯羅文 (Chris Rowen)。請表明您的所屬機構並提出您的問題。

Robinson Humphrey. Wally, just to clarify when you said the fourth quarter would be like past seasonality, were you referring to last year or your typical seasonality? And then my second question has to do with DVR. Just going on our local Comcast website here, and I realize it is not necessarily a SFA system, but the pricing to go from analog subscriber to get the digital and the DVR, you're now looking at a delta of $25 versus what in the past has been as low as 15. And I'm wondering are you seeing broadly across your MSOs and are they doing that for CapEx reasons or is it because their VOD offering is starting to get a little more competitive?

羅賓遜·漢弗萊。沃利，您說第四季度的季節性與過去的季節性類似，請您澄清一下，您指的是去年還是典型的季節性？我的第二個問題與 DVR 有關。只要造訪我們當地的康卡斯特網站，我就會發現它不一定是 SFA 系統，但從類比用戶到數位用戶和 DVR 的定價，現在的差額是 25 美元，而過去則低至 15 美元。我想知道您是否廣泛地了解您的 MSO 的情況，他們這樣做是出於資本支出的原因，還是因為他們的 VOD 產品開始變得更具競爭力？

Let me answer the first part of the question and then I'll let Michael answer the question about DVR pricing by our customers. I believe what I was asked a specific question associated with whether or not the Q4 to Q1 rate of change that we saw this quarter, whether it exhibited anything unusual and what I responded was at this point in time, we did not--we could not identify anything that was specifically unusual about this change rate. There are--the amount of decrease was greater than past quarters. I think Jim indicated that there was some lumpiness to our sales pattern and we have indicated that in past quarters, and we've indicated that we're not going to forecast based on what we saw here. But we did not see any -- we have not identified anything significantly unusual about the Q4 to Q1 pattern that we saw this quarter. And now I'll let Michael the question about DVR pricing from our customers.

讓我先回答問題的第一部分，然後讓麥可回答有關我們客戶 DVR 定價的問題。我相信我被問到一個具體問題，與我們本季看到的第四季度與第一季的變化率是否有關，是否表現出任何異常，而我的回答是，目前我們沒有——我們無法確定這個變化率有什麼特別異常的地方。有－下降的幅度比前幾季更大。我認為吉姆指出我們的銷售模式存在一些不平衡，我們在過去幾個季度中已經指出了這一點，並且我們已經表示我們不會根據我們在這裡看到的情況進行預測。但我們沒有看到任何——我們沒有發現本季第四季與第一季模式有什麼明顯異常。現在我將讓邁克爾回答我們的客戶關於 DVR 定價的問題。

Yeah, I think obviously the DVRs, especially if it is an HD DVR, with a large hard drive, carry a fairly high price. And I think early in the last few products the industry was reluctant to offer DVR a la carte to an analog subscriber, not because they don't believe the analog subscriber would love it, I mean our data suggests that they absolutely will, but because the business model's a little more problematic there. So we do have customers who are experimenting now and what they're looking at is not requiring the analog sub to buy the digital service, but offering the DVR service at a higher price than they offer to their digital setups. And they're trying to find a sweet spot where that works for everybody, and it's just starting to happen. And we believe if they can figure that out, that's a way to start getting analog subs on to the digit,al platforms.

是的，我認為 DVR，尤其是帶有大容量硬碟的高清 DVR，價格顯然相當高。我認為，在最近的幾款產品中，業界不願意向模擬用戶提供 DVR 單點服務，這並不是因為他們不相信模擬用戶會喜歡它，我的意思是我們的數據表明他們絕對會喜歡它，而是因為那裡的商業模式有點問題。因此，我們確實有一些客戶正在進行試驗，他們所考慮的不是要求類比用戶購買數位服務，而是以高於其數位設定的價格提供 DVR 服務。他們正在努力尋找一個適合所有人的最佳方案，而這才剛開始實現。我們相信，如果他們能解決這個問題，就可以將類比潛水艇引入數位平台。

I think the other one to consider is what is kind of the competitive marketplace in terms of what competitors offer in this space. And, of course, a couple things. One, you see competitive pricings out of both Direct TV and Dish relative to offering DVR products. And I think if you follow Direct TV's announced strategy, what you'll find is that they're going to implementing a basically a VOD service, by basically loading your hard drive up with a number of movies and then basically charging you as you watch the movies. So the competitive landscape from the satellite guys is still moving in the area of DVRs, so the question will be, as more and more people get exposed, how do you respond to that kind of strategy.

我認為另一個需要考慮的問題是，就競爭對手在這個領域提供的產品而言，競爭市場是什麼樣的。當然，還有幾件事。首先，您會看到 Direct TV 和 Dish 在提供 DVR 產品方面都具有競爭力的定價。我認為，如果你關注 Direct TV 宣布的策略，你會發現他們將實施一項基本的 VOD 服務，即在你的硬碟上加載多部電影，然後在你觀看電影時向你收費。因此，衛星營運商在 DVR 領域的競爭格局仍在變化，因此問題是，隨著越來越多的人接觸到該領域，您將如何應對這種策略。

Yes, essentially some of the satellite offerings are digital DVR for the equivalent content offering of the analog-carried cable.

是的，本質上，一些衛星服務是數位 DVR，用於提供與類比電纜相同的內容。

Okay. Thank you.

好的。謝謝。

Yes.

是的。

Next question's coming from Brian Coyan. Please announce your affiliation and then pose your question.

下一個問題來自 Brian Coyan。請說明您的所屬機構，然後提出您的問題。

Hi, it's Friedman Billings. Just a couple of questions. First of all, I want to come back to set-top boxes for half a second and if you could talk about margins on boxes that use other conditional access, like Microsoft in the telco world or nds or [Delsky] or Europe. Just about the differences you see there and what it means to you?

你好，我是弗里德曼·比林斯。僅有幾個問題。首先，我想花半秒鐘回到機上盒的話題，你能否談談使用其他條件接收的機上盒的利潤率，例如電信領域的微軟、nds、[Delsky] 或歐洲。您在那裡看到了什麼差異以及這對您意味著什麼？

Place to start would be Cablevision where we shipped to probably three million of them. You know, we basically add value across it when we do it in Europe and do it in Cablevision, where we've shipped the conditional access. I'll let Wally comment on the specifics, but in general we've been doing this for a long period of time.

首先從 Cablevision 開始，我們向其發貨了大約 300 萬台設備。您知道，當我們在歐洲和 Cablevision 開展這項業務時，我們基本上增加了價值，我們已經在那裡交付了有條件接收服務。我會讓沃利對具體細節發表評論，但總的來說，我們已經這樣做了很長一段時間。

I think that, as you're entering into the markets and into the customers, with new products, as we've indicated before, the margins tend to be more challenging than our -- the Company average for set-tops, and that is certainly as we are beginning to grow into the IPTV market with new products, as well as moving aggressively internationally here with new products, those margins early on will be challenging just as are other products have been.

我認為，隨著您帶著新產品進入市場和客戶，正如我們之前指出的那樣，利潤率往往比我們公司機上盒的平均水平更具挑戰性，而且隨著我們開始帶著新產品進入 IPTV 市場，以及帶著新產品積極進軍國際市場，這些利潤率在早期將像其他產品一樣具有挑戰性。

Okay. Good, thanks. Quick question--

好的。很好，謝謝。快速提問--

I think to Wally's point it's more about new markets than conditional access being in it or not.

我認為，對於沃利的觀點來說，這更多的是關於新市場，而不是是否有條件接收。

Right. Understood. Okay. One question for Dwight. On the SBC part of transmission, could you just describe a little bit, maybe give us a sense or feel about what's in the mix there, the transition, you know, between let's say optical and digital headends and encoders. Even sounded a little bit during the script that you said that some of the telco's were buying your HFC equipment, and was wondering if you could describe that too?

正確的。明白了。好的。問德懷特一個問題。關於傳輸的 SBC 部分，您能否稍微描述一下，讓我們了解其中的混合內容，例如光學和數位頭端和編碼器之間的轉換。在劇本中甚至聽起來您說一些電信公司正在購買您的 HFC 設備，想知道您是否也可以描述一下這一點？

Well, I think there's a couple of issues there. On SBC, basically what we're doing is helping them put in their basic headend infrastructure. We do know there is no optics business we have with SBC. It's all headend infrastructure, encoders, multiplexers, systems integration, third party integration, those across the United States. We have multiple telephone clients around the world that we act to supply fiber-to-the-home optics to. A lot smaller second,territory guys and Internationally. So those are our two primary avenues right now for telc -- for telephone architecture revenues.

嗯，我認為那裡有幾個問題。在 SBC，我們所做的基本上是幫助他們建立基本的頭端基礎設施。我們確實知道我們與 SBC 之間沒有光學業務往來。它是所有前端基礎設施、編碼器、多工器、系統集成、第三方集成，遍布美國各地。我們在世界各地擁有多個電話客戶，我們為他們提供光纖到府光纖設備。第二、領土人員和國際人員規模小得多。因此，這些是我們目前實現電話架構收入的兩個主要途徑。

All right. Anything like--again, maybe I misinterpreted. Did you say anything about HFC or RF type equipment there, too, to telco's?

好的。諸如此類——也許我又誤解了。您是否也向電信公司提及有關 HFC 或 RF 類型設備的事情？

We have all kind of different service providers that also use HFC access. We now have some of the MSO operators over in Europe thinking about using DSL technologies. So that'll get intermixed within all these service providers.

我們擁有各種使用 HFC 接取的不同類型的服務提供者。目前，歐洲的一些 MSO 營運商正在考慮使用 DSL 技術。因此，這些服務提供者之間將會混合在一起。

Okay, great. One final quick question. Wanted to ask about a number you provided on your, high-end boxes. Could you give us what percentage of your shipment are the high-end? You know, DVR's, High def, DOCSIS (inaudible), out of the total?

好的，太好了。最後一個簡短的問題。想詢問一下您在高端盒子上提供的數字。您能告訴我們您的貨品中高端產品的比例是多少嗎？您知道嗎，DVR、高畫質、DOCSIS（聽不清楚），總共有多少？

Of the--if you include only HDTV and the DVR boxes, the total shipments in Q1 '06, the percentage of the total quantity was 55%.

如果僅包含高清電視和 DVR 盒，那麼 2006 年第一季的總出貨量佔總數量的 55%。

Not on the--that is excluding DOCSIS?

不包括 DOCSIS？

That's excluding DOCSIS. With the DOCSIS it is 78%.

這不包括 DOCSIS。使用 DOCSIS 時，該比例為 78%。

78% with DOCSIS. Got it. Alright, wonderful. That is all I had. Thank you.

78% 採用 DOCSIS。知道了。好的，太棒了。這就是我所擁有的一切。謝謝。

Next question comes from Steven Kamman. Please announce your affiliation and pose your question. I'll try to keep this quick. Steve Kamman, CIBC. Any sense on the split in the MTA, the voice modem market, international versus US.? I know you had a big international quarter last quarter.

下一個問題來自 Steven Kamman。請表明您的所屬機構並提出您的問題。我會盡量簡短地講解。加拿大帝國商業銀行的史蒂夫‧卡曼。對於 MTA、語音調變解調器市場、國際市場和美國市場的分裂，您有何看法？我知道你們上個季度的國際業務表現非常好。

Steve, I think we continue to do very well internationally, but from--if you look at this, of the total, it's still continues to be in approximately the 50% range.

史蒂夫，我認為我們在國際上繼續做得很好，但是從總量來看，它仍然在大約 50% 的範圍內。

50-50 split. Any changes on qualifica --

五五分成。資格方面有任何變化——

That is not the exact number, but it continues to be in that 50% range. Okay?

這不是確切的數字，但它仍然在 50% 的範圍內。好的？

And any news on qualifications there and other operators?

還有關於那裡的資格和其他運營商的任何消息嗎？

Could you reask the question, please?

您能重新問一次這個問題嗎？

Any changes in terms of qualifications and other operators or growth there?

在資質、其他業者或成長方面有任何變化嗎？

We're continuing to pursue business. We receive new customers every quarter and this quarter was no example -- no exception to that, both in the U.S. as well as in Europe.

我們將繼續開展業務。我們每季都會接待新客戶，本季也不例外，無論是在美國還是歐洲。

Okay. And then--

好的。進而 -

We don't generally announce individual customers unless the customer chooses to do that himself.

我們通常不會公佈個人客戶，除非客戶自己選擇這樣做。

Okay. Any update on downloadable conditional access? That is the only other question.

好的。有關於可下載條件存取的更新嗎？這是唯一的另一個問題。

This is Allen, I'll answer on that one. We had the demonstration with downloadable condition (inaudible) with the FCC and Comcast, and the next scheduled demonstration for the demonstration for the FCC is November 29th and that again will be jointly with Comcast and also with the Motorola. And it will be a full demonstration and all reports are that the FCC was -- responded very well, that we had demonstrated the capabilities.

我是艾倫，我來回答這個問題。我們與 FCC 和康卡斯特進行了可下載的演示（聽不清楚），下一次為 FCC 進行的演示預定於 11 月 29 日舉行，屆時將再次與康卡斯特和摩托羅拉聯合舉辦。這將是一次全面的演示，所有報告都表明，FCC 的回應非常好，我們已經展示了相關能力。

Thanks very much.

非常感謝。

Your last question is coming from Alan Bezoza. Please announce your affiliation then pose your question.

您的最後一個問題來自艾倫·貝佐薩。請說明您的所屬機構，然後提出您的問題。

Hey, I guess I'm not dead yet, one of the last questions. I want to ask you on M&A, it's something that you kind of hinted towards before. You know, you look around the competitive landscape it is a lot of pluses and minuses in every quarter and lumpy for a lot of the smaller players. You know, as you look around and certainly have some distressed companies out there, are you willing to kind of, you know, grow the cable business, if you will, and maybe expand on certain areas within that?

嘿，我想我還沒死，這是最後一個問題。我想問您關於併購的問題，這是您之前暗示過的事情。你知道，環顧競爭格局，你會發現每季都有許多優點和缺點，而且對許多小公司來說，情況並不明朗。您知道，當您環顧四周並發現確實有一些陷入困境的公司時，您是否願意擴大有線電視業務，甚至擴展其中的某些領域？

I think we're always open to this. You know, we bought [Bargonet] a few years ago. It's turned out to be a good acquisition for us. We bought the [Aries] transmission business off of them and we were able to make it profitability in about 30 days. We're very open, but we're also very conscious of the prices you have to pay for things. You know, we believe you create value by buying them at a fair price and bringing leverage to them. Still, we continue to be open to different things, but we're not going to go do anything crazy.

我認為我們對此始終持開放態度。你知道，我們幾年前收購了 [Bargonet]。事實證明，這對我們來說是一次很好的收購。我們從他們手中收購了[Aries]變速箱業務，並在大約 30 天內使其盈利。我們非常開放，但我們也非常清楚您必須為物品支付的價格。你知道，我們相信你可以透過以公平的價格購買它們並為它們帶來槓桿來創造價值。儘管如此，我們仍然對不同的事情持開放態度，但我們不會做任何瘋狂的事情。

So when you said earlier you're not going to making any large acquisitions, what do you mean by large acquisition? Obviously you're not buying Cisco, but what do you consider large, as you say?

所以當您之前說您不會進行任何大型收購時，您所說的大型收購是什麼意思？顯然您不會收購思科，但正如您所說，您認為什麼是大公司？

Generally, you know, 500 million or less. Wally said he would like to keep 500 million on the balance sheet ,so I think that is probably the top end of it.

一般來說，5億或更少。沃利說他希望在資產負債表上保留 5 億美元，所以我認為這可能是最高限額。

That's fair. Great. Thanks guys, and good luck.

這很公平。偉大的。謝謝大家，祝你好運。

Thank you. Well, I'd like to thank everybody for joining us. You know, the call is running a little bit late. If you have questions, if you give them to Wally and Tom, we'll be glad to handle them. So thanks again for joining us.

謝謝。好吧，我想感謝大家的參與。你知道，通話有點晚了。如果您有問題，請將它們交給 Wally 和 Tom，我們將很樂意為您處理。再次感謝您的加入。

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful evening. Thank you for your participation.

謝謝各位，女士們、先生們。今天的電話會議到此結束。您現在可以斷開電話線並享受美好的夜晚。感謝您的參與。