思科 (CSCO) 2014 Q2 法說會逐字稿

Welcome to Cisco Systems' second-quarter and FY14 financial results conference call. At the request of Cisco Systems, today's call is being recorded. If you have any objections you may disconnect.

歡迎參加思科系統公司第二季及 2014 財年財務業績電話會議。應思科系統公司的要求，今天的通話正在錄音。如果您有任何異議，可以斷開連接。

Now, I'd like to introduce Melissa Selcher, Senior Director, Analyst and Investor Relations. Ma'am, you may begin.

現在，我想介紹分析師和投資者關係高級總監梅麗莎·塞爾徹 (Melissa Selcher)。女士，您可以開始了。

Thank you. Good afternoon, everyone, and welcome to our 96th quarterly conference call. This is Melissa Selcher, and I'm joined by John Chambers, our Chairman and Chief Executive Officer; Frank Calderoni, Executive Vice President and Chief Financial Officer; Rob Lloyd, President of Development and Sales; and Gary Moore, President and Chief Operating Officer.

謝謝。大家下午好，歡迎參加我們第 96 次的季度電話會議。我是梅麗莎·塞爾徹 (Melissa Selcher)，和我一起發言的還有我們的董事長兼首席執行官約翰·錢伯斯 (John Chambers)；弗蘭克·卡爾德羅尼 (Frank Calderoni)，執行副總裁兼首席財務官；開發和銷售總裁 Rob Lloyd；以及總裁兼首席營運官加里·摩爾 (Gary Moore)。

I would like to remind you that we have a corresponding webcast with slides on our website in the Investor Relations section. Income statements for GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements, and other financial information can also be found on the Investor Relations website. Click on the financial reporting section of the website, to access these documents.

我想提醒您，我們網站的「投資者關係」部分有相應的網路廣播和幻燈片。投資者關係網站上還可以找到 GAAP 與非 GAAP 調節資訊的損益表、資產負債表、現金流量表和其他財務資訊。點擊網站的財務報告部分，即可存取這些文件。

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results. The matters we'll be discussing today include forward-looking statements, and, as such, are subject to the risks and uncertainties that we discussed in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q, and any applicable amendments, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

在整個電話會議中，我們將參考 GAAP 和非 GAAP 財務結果。我們今天將要討論的事項包括前瞻性陳述，因此，這些事項受我們在向美國證券交易委員會提交的文件中詳細討論的風險和不確定性的影響，特別是最新的 10-K 和 10-Q 表報告以及任何適用的修訂，這些報告確定了可能導致實際結果與前瞻性陳述中的結果存在重大差異的重要風險因素。

Unauthorized recording of this conference call is not permitted. All comparisons to this call will be on a year-over-year basis, unless stated otherwise.

未經授權，不允許錄製本次電話會議。除非另有說明，所有與本次電話會議的比較均以年比為基礎。

I'll now turn the call over to John for his commentary on the quarter.

現在我將把電話轉給約翰，請他對本季發表評論。

Mel, thank you very much.

梅爾，非常感謝。

In Q2 FY14, Cisco delivered non-GAAP earnings per share of $0.47, on revenues of $11.2 billion, down 8% year over year.

2014 財年第二季度，思科非公認會計準則每股收益為 0.47 美元，營收 112 億美元，年減 8%。

The market and the dynamics in our business played out largely as we described in our last quarterly conference call. We saw the impact of our emerging markets, service provider, and high-end product transitions in our business, as we discussed last quarter. I will provide more detail in the business update.

市場和我們業務的動態基本上與我們在上次季度電話會議上所描述的一樣。正如我們在上個季度所討論的那樣，我們看到了新興市場、服務提供者和高端產品轉型對我們業務的影響。我將在業務更新中提供更多詳細資訊。

As we navigate these economic and product cycles, we are managing our business to deliver shareholder value. In this quarter, we returned a record $4.9 billion to shareholders, through dividends of approximately $900 million and $4 billion in share buyback.

在我們應對這些經濟和產品週期的同時，我們正在管理我們的業務以實現股東價值。本季度，我們透過約 9 億美元的股利和 40 億美元的股票回購，向股東返還了創紀錄的 49 億美元。

We managed non-GAAP operating expenses, reducing them into high single digits year over year. And Gary, Frank, really nice job on that. And we built backlog, just as we said we would.

我們管理了非公認會計準則營運費用，使其年減至高個位數。加里、法蘭克，你們做得真好。正如我們所說的那樣，我們建立了積壓訂單。

We believe the strategy that has enabled us to emerge stronger from every previous cycle remained solid. We capitalized on the major market transitions. We partnered with our customers to deliver innovation and solutions that fuel their business.

我們相信，讓我們在每一個之前的周期中都能夠變得更強大的策略依然穩固。我們利用了重大的市場轉型。我們與客戶合作，提供創新和解決方案來推動他們的業務發展。

In our view, this next wave of the Internet, the Internet of Everything, will encompass every technology transition we are seeing in the market today, with the network squarely at the center. We are building the platform for the Internet of Everything with scale and security to address the unparalleled complexity requirements. We plan to continue to disrupt the market and disrupt ourselves to deliver the value and solutions our customers require.

我們認為，網路的下一波浪潮，即萬物互聯，將涵蓋我們今天在市場上看到的每一種技術轉型，而網路則是其中的核心。我們正在建立具有規模和安全性的萬物物聯網平台，以滿足無與倫比的複雜性要求。我們計劃繼續顛覆市場，顛覆自我，以提供客戶所需的價值和解決方案。

Last year, we introduced entirely new approaches to networking, designed around future-proofing the best customers are making today, and enabling them to harness the benefits of the Internet of Everything.

去年，我們推出了全新的網路方法，旨在為當今最優秀的客戶做好面向未來的準備，並使他們能夠利用萬物互聯的優勢。

As we've capitalized on these transitions, I would like to summarize the dynamics of our business in the following five points: First, the Internet of Everything has moved from an interesting concept to a business imperative, driving opportunities across every major vertical. It was the central conversation at the Consumer Electronics Show, and the World Economic Forum of the last couple months, with CEOs, industry and country leaders globally. Anyone walking away from these events should characterize this year as the tipping point.

當我們利用這些轉變時，我想用以下五點來總結我們的業務動態：首先，萬物互聯已經從一個有趣的概念變成了一項商業要務，為每個主要垂直領域帶來了機會。這是過去幾個月消費電子展和世界經濟論壇上全球執行長、產業和國家領導人討論的核心議題。任何經歷過這些事件的人都應該將今年視為一個轉捩點。

Second, we continue our strength in US enterprise and US commercial, as we said we would do last-quarter conference call, with year-over-year orders up 13% in US enterprise, and 10% in US commercial. While we face SDN, fight label servers, and public cloud solutions to this market, we see our ability to deliver architectures and cross-portfolio solutions with scale, security and CapEx and OpEx savings as a driver of our success in this market.

其次，我們繼續保持在美國企業和美國商業領域的強勁表現，正如我們在上個季度的電話會議上所說的那樣，美國企業領域的訂單同比增長 13%，美國商業領域的訂單同比增長 10%。雖然我們面臨 SDN、標籤伺服器和公有雲解決方案，但我們認為，我們提供具有規模、安全性以及資本支出和營運支出節省的架構和跨產品組合解決方案的能力是我們在這個市場取得成功的驅動力。

Third, we are managing through the economic and product cycles, just as we outlined on the last call. Emerging market orders declined 3% year over year, as compared to last quarter's down 12%, with the BRICs, Mexico down 10% this quarter.

第三，正如我們在上次電話會議上所概述的那樣，我們正在應對經濟和產品週期。新興市場訂單年減3%，上季則下降12%，其中金磚四國、墨西哥本季訂單下降10%。

SB orders declined 12%, and product transition and core routing and switching contributing to double-digit revenue declines. As we move to reaccelerate growth across the businesses, we remain focused on managing the levers to deliver value to our shareholders, while making the investments to position Cisco for the long-term.

SB訂單下降了12%，產品轉換和核心路由與交換導致收入出現兩位數的下降。隨著我們重新加速各項業務的成長，我們仍專注於管理槓桿，為股東創造價值，同時進行投資，為思科的長期發展奠定基礎。

Fourth, we believe our focus on architectures is really paying off. As the pace and complexity of IT increases, Cisco's ability to bring together technologies, servers, and solutions across silos should continue to drive differentiation, preference, and over time, gross margins. Point players will push us faster at times, but I believe you will see our advantage, in delivering integrated architectures, at scale, win in the end.

第四，我們相信我們對架構的關注確實獲得了回報。隨著 IT 的發展速度和複雜性不斷增加，思科將各部門的技術、伺服器和解決方案整合在一起的能力應該會繼續推動差異化、偏好，並隨著時間的推移推動毛利率的提高。有時，點玩家會逼迫我們更快，但我相信你會看到我們的優勢，即在提供整合架構方面，大規模地，最終取得勝利。

And fifth, we said last quarter that our goal was to build product backlog and we exited Q2 with book-to-bill greater than 1. We are pleased with our progress managing through the cycles in our market and our businesses, and as such, wanted to give you an update on our Q3 revenue guidance, before Frank details guidance later. That allows you to help frame the rest of the discussion this call.

第五，我們上個季度說過，我們的目標是建立產品積壓，我們在第二季結束時的訂單出貨比大於1。我們對在市場和業務週期中取得的進展感到滿意，因此，在弗蘭克稍後提供詳細指引之前，我們希望向您介紹我們第三季度的收入指引的最新情況。這可以幫助您建立本次通話的其餘討論內容。

For Q3, we expect revenue to decline in the range of down 6% to down 8%. As we execute on our plan to return to growth over the next several quarters, subject to all the appropriate caveats discussed during this call, we also plan to continue to build backlog.

對於第三季度，我們預計收入將下降 6% 至 8%。在我們執行未來幾季恢復成長的計畫時，我們也計劃繼續累積訂單，但要遵守本次電話會議中討論的所有相關注意事項。

There's no question that we have moved from a compute-centric to a network-centric model for IT. Cisco is building the simple, smart, and highly secure solutions that will enable our customers to capitalize on the cost efficiencies, agility, and growth opportunities that lie ahead.

毫無疑問，我們的 IT 模式已經從以運算為中心轉變為以網路為中心。思科正在建立簡單、智慧且高度安全的解決方案，使我們的客戶能夠利用未來的成本效率、靈活性和成長機會。

Our approach is unique. It starts with the central role of the network, which is the only place that connects everything; people, process, data and things.

我們的方法是獨一無二的。首先是網路的中心作用，它是連結一切的唯一場所；人員、流程、資料和事物。

Our transition is from selling boxes, like most of our peers, to selling business outcomes. Our delivery is through architectures, partners and services, and we will help our customers utilize their $180 billion Cisco install base to capture the most value today, and build for tomorrow.

與大多數同行一樣，我們的轉型是從銷售盒子轉向銷售業務成果。我們透過架構、合作夥伴和服務來交付產品，我們將幫助我們的客戶利用其價值 1800 億美元的思科安裝基礎來獲取當今的最大價值並為明天而建立。

As we move into this next area of the Internet with our customers, our commitment to you is to invest to sustain our industry leadership position, while balancing the evolution in our business, and a very strong focus on shareholder return.

當我們與客戶一起進入互聯網的下一個領域時，我們對您的承諾是投資以保持我們的行業領導地位，同時平衡我們業務的發展，並高度關注股東回報。

Frank, at this time, I'd like to turn it over to you.

法蘭克，現在我想把這個機會交給你。

Thank you, John.

謝謝你，約翰。

In Q2 FY14, our business performed as we expected. We continue to manage through the transitions in our business, and challenges we outlined in our last earnings call.

2014 財年第二季度，我們的業務表現符合預期。我們將繼續努力應對業務轉型以及上次財報電話會議上提出的挑戰。

From a top and bottom line perspective, total revenue was $11.2 billion, down 8%. Non-GAAP net income was $2.5 billion, and non-GAAP EPS was $0.47 per share, down 8% year on year. Our GAAP net income was $1.4 billion, and GAAP earnings per share on a fully-diluted basis were $0.27.

從營收和淨利潤來看，總收入為 112 億美元，下降 8%。非公認會計準則淨利為25億美元，非公認會計準則每股收益為0.47美元，較去年同期下降8%。我們的 GAAP 淨收入為 14 億美元，完全稀釋後的 GAAP 每股收益為 0.27 美元。

Product revenue declined 11%, and service revenue increased 3%, with product book-to-bill greater than 1. Overall non-GAAP operating margin was 27.8%.

產品收入下降 11%，服務收入成長 3%，產品訂單出貨比大於 1。整體非 GAAP 營業利益率為 27.8%。

In Q2, our total non-GAAP gross margin was 61.3%, within our expectations of 61% to 62%. Non-GAAP product gross margin was 58.8%. As our overall volume of business was down this quarter, it's negatively impacted our non-GAAP product gross margins in several ways:

第二季度，我們的非公認會計準則總毛利率為 61.3%，符合我們預期的 61% 至 62%。非公認會計準則產品毛利率為58.8%。由於本季我們的整體業務量下降，這在幾個方面對我們的非 GAAP 產品毛利率產生了負面影響：

First, we have less leverage in our cost structure. We did not get the full benefit of cost efficiencies at these lower volumes.

首先，我們的成本結構槓桿較低。在產量較低的情況下，我們未能充分享受成本效率的益處。

Second, as our volumes in higher-margin core products were lower, we saw an unfavorable mix impact toward lower-margin products, such as SP video and servers.

其次，由於我們高利潤核心產品的銷售量較低，我們看到了對 SP 視訊和伺服器等低利潤產品組合的不利影響。

Third, while the impact from pricing was consistent with prior quarters, it was at the higher end of our historical range in Q2. As we improve business volume, we expect it will balance the drivers of our product gross margins.

第三，雖然定價的影響與前幾季一致，但第二季的定價處於歷史最高水準。隨著業務量的提高，我們預計它將平衡我們產品毛利率的驅動因素。

Our non-GAAP operating expenses were $3.7 billion, or 33.5% as a percentage of revenue. That's compared to 34.1% in Q2 of FY13.

我們的非公認會計準則營運費用為 37 億美元，佔收入的 33.5%。相較之下，2013 財年第二季這一比例為 34.1%。

Our headcount decreased by approximately 1,000 from the end of the fiscal year to 74,065. Our expenses benefited from reduced variable compensation expense, as a result of our lower financial performance, and efficiencies associated with our recent workforce rebalancing.

我們的員工人數較本財政年度結束時減少了約 1,000 人，降至 74,065 人。由於我們的財務表現下降以及近期勞動力重新平衡帶來的效率提高，我們的支出受益於可變薪酬費用的減少。

GAAP net income for the second quarter of fiscal 2014 included a pretax charge of $655 million, related to the expected cost of remediation of issues with memory components in certain products, sold in prior fiscal years. The charge is related to the expected remediation cost for certain products containing memory components, manufactured by a single supplier between 2005 and 2010.

2014 財年第二季的 GAAP 淨收入包括 6.55 億美元的稅前費用，該費用與修復前幾財年銷售的某些產品中的記憶體組件問題的預期成本有關。此費用與 2005 年至 2010 年間由單一供應商生產的某些含有記憶體組件的產品的預期補救成本有關。

These components have been determined to have a potential to fail, due to a design or manufacturing defect. These are widely used across the industry, and are included in a number of Cisco's products.

由於設計或製造缺陷，這些組件已被確定有發生故障的可能性。這些在整個行業中被廣泛使用，並且包含在思科的許多產品中。

Although the majority of these products are beyond Cisco's warranty terms, and the failure rates are low, Cisco is proactively working with customers on mitigation. This results in a charge to product cost of sales during the second quarter of FY14. This charge has been excluded from non-GAAP results, as Cisco does not believe it is reflective of ongoing business and operating results.

儘管這些產品中的大多數超出了思科的保固期限，且故障率很低，但思科正在積極與客戶合作尋求緩解措施。這導致 2014 財年第二季的產品銷售成本被計入。該費用已被排除在非公認會計準則結果之外，因為思科認為它不能反映持續的業務和營運結果。

Total cash, cash equivalents and investments were $47.1 billion, including $3.3 billion available in the US at the end of the quarter. We generated operating cash flows of $2.9 billion during the quarter.

現金、現金等價物和投資總額為 471 億美元，其中本季末在美國可用的金額為 33 億美元。本季我們產生了 29 億美元的經營現金流。

We continue to drive our capital allocation strategy. As you recall, in Q4 FY12, we committed to return a minimum of 50% of our free cash flow annually, through dividends and share repurchases. In FY13, we returned over 50% of free cash flow, and I'm pleased that in the first half of FY14, we have returned in excess of 150% of free cash flow to our shareholders, comprised of $6 billion of share repurchases, and $1.8 billion of dividends.

我們將繼續推動我們的資本配置策略。大家還記得，在 2012 財年第四季度，我們承諾每年透過股利和股票回購還至少 50% 的自由現金流。2013 財年，我們返還了超過 50% 的自由現金流，我很高興在 2014 財年上半年，我們向股東返還了超過 150% 的自由現金流，其中包括 60 億美元的股票回購和 18 億美元的股息。

In Q2, we returned $4.9 billion to shareholders, a quarterly record for Cisco. This included $4 billion through share repurchase and approximately $900 million through our quarterly dividend.

第二季度，我們向股東返還了 49 億美元，創下了思科的季度紀錄。其中包括透過股票回購獲得的 40 億美元和透過季度股息獲得的約 9 億美元。

Our diluted share count decreased by approximately 100 million shares, driven by these repurchases. We expect the remaining impact of the Q2 share repurchase to further reduce share count this next quarter.

由於這些回購，我們的稀釋股份數量減少了約 1 億股。我們預計第二季股票回購的剩餘影響將在下個季度進一步減少股票數量。

In addition, today, our Board approved an increase of $0.02 to the quarterly dividend, to $0.19 per share. An approximate 12% increase, representing a yield of approximately 3.3%. This dividend increase, combined with the anticipated share repurchases in the second half of the fiscal year, would comfortably exceed a return of over 100% for the full fiscal year of our free cash flow.

此外，今天，我們的董事會批准將季度股息增加 0.02 美元，至每股 0.19 美元。增幅約 12%，收益率約 3.3%。此次股利成長，加上本財年下半年預計的股票回購，將輕鬆超過我們整個財年自由現金流 100% 以上的報酬率。

In Q3, we anticipate incurring additional debt to refinance our maturing bonds and enhance our domestic cash balances to support our ongoing commitment of returning cash to shareholders.

在第三季度，我們預計將承擔額外債務來為到期債券進行再融資，並增加我們的國內現金餘額，以支持我們向股東返還現金的持續承諾。

John, turn it back over to you.

約翰，把它交還給你。

Thank you, Frank.

謝謝你，弗蘭克。

I'll now provide some additional detail on our Q2 performance, and trends we are seeing in our business, and in the market. I will start with an update on the three economic and product cycles we outlined in our last call.

現在，我將提供有關我們第二季業績以及我們在業務和市場中看到的趨勢的更多細節。我將首先介紹我們在上次電話會議中概述的三個經濟和產品週期的最新情況。

First, we saw emerging orders declined 3% year over year, compared to the 12% decline in Q1. With the BRICs plus Mexico down 10%, as I said earlier.

首先，我們發現新興訂單年減 3%，而第一季下降了 12%。正如我之前所說，金磚國家加上墨西哥下降了 10%。

While we saw some improvement quarter to quarter, the emerging markets remain challenged, as we discussed in the last conference call. While this economic trend remains out of our control, we have put in place important programs and efforts to design to capture growth and position Cisco to capture share, even if these markets remain challenged.

儘管我們看到季度間有所改善，但新興市場仍然面臨挑戰，正如我們在上次電話會議中所討論的那樣。儘管這種經濟趨勢仍不受我們控制，但我們已經制定了重要的計劃並做出了努力，旨在抓住成長機會並使思科佔據市場份額，即使這些市場仍然充滿挑戰。

Second, service provider orders declined 12% year over year. SP video orders, including the set top boxes were down 20%.

其次，服務提供者訂單較去年同期下降12%。包括機上盒在內的SP視訊訂單下降了20%。

Service provider orders, excluding SP video were down 7%. Product transitions in core routing, along with the emerging markets weakness also negatively impacted search router results.

不包括 SP 影片的服務供應商訂單下降了 7%。核心路由的產品轉型以及新興市場的疲軟也對搜尋路由器的結果產生了負面影響。

And third, product transitions. At the end of last year, we introduced new switching and routing platforms, which typically can be ramped up over 4 to 8 quarters.

第三，產品轉型。去年年底，我們推出了新的交換和路由平台，通常可以在 4 到 8 個季度內完成升級。

Our next-generation routing business saw year-over-year revenue decline of 11%, with orders down 5%. As we managed through these transitions, we have announced reference customers for the NCS platform, including Telstra, KDDI, and BSkyB, and we expect both the NCS and CRS-X to ramp through the back half of the year.

我們的下一代路由業務收入年減 11%，訂單下降 5%。在完成這些轉變的過程中，我們宣布了 NCS 平台的參考客戶，包括 Telstra、KDDI 和 BSkyB，我們預計 NCS 和 CRS-X 都將在今年下半年成長。

Switching revenue declined 12% year over year, with orders down 6%. As we saw some deals delayed as customers' architects and qualified their new application-centric infrastructure systems.

轉換收入較去年同期下降 12%，訂單下降 6%。我們看到一些交易由於客戶的架構師和新的以應用程式為中心的基礎設施系統的認證而被推遲。

We were very pleased with the first shipping quarter of the Nexus 9000, as the booking pipeline from the beginning to end of the quarter nearly tripled. We believe we are firmly taking share in the 10 gig and 40 gig data center switching markets.

我們對 Nexus 9000 第一季的出貨量感到非常滿意，因為從本季開始到結束的預訂量幾乎增加了兩倍。我們相信，我們正在 10 千兆和 40 千兆資料中心交換市場中牢牢佔據份額。

I'll now walk through the elements of the product portfolio that I've not yet mentioned, in terms of year-over-year revenue growth. Data center revenue grew 10%, with order growth rates in the mid-30s.

現在，我將從年收入成長的角度介紹我尚未提及的產品組合要素。資料中心收入成長了 10%，訂單成長率達到 30% 左右。

Revenue this quarter in data center had some impact from lower backlog coming into the quarter, and the timing of shipments. The pipeline continues to look very strong, and UCS continues to take market share.

本季資料中心的營收受到本季積壓訂單減少和出貨時間的影響。管道繼續看起來非常強勁，UCS 繼續佔據市場份額。

Wireless declined 4%. Cisco's cloud networking platform, Meraki, continues to perform very well, growing over 100% year over year, and more than doubling customers from 4,300 to one quarter ago, to 9,600 in this quarter, due largely to the power of the Cisco channel.

無線業務下跌 4%。思科的雲端網路平台 Meraki 繼續表現良好，年成長超過 100%，客戶數量從第一季前的 4,300 個增加到本季的 9,600 個，增加了一倍多，這主要歸功於思科通路的力量。

Approximately one-third of Meraki's business is deferred. We have seen -- also seen the wireless impact by more complex architectural deals, in our large enterprises and service providers, where wireless is part of a much broader solution, which have long sales cycles.

Meraki 約三分之一的業務被推遲。我們已經看到——也看到了更複雜的架構交易對無線的影響，在我們的大型企業和服務供應商中，無線是更廣泛的解決方案的一部分，具有較長的銷售週期。

Security revenue grew 17%, with particular strength in network security, up 21%, and content security, up 5%. We are seeing the orders grow significantly faster than revenue, up 30% this quarter, as we continue to shift toward more recurring revenue models in this business.

安全收入成長了 17%，其中網路安全收入成長了 21%，內容安全收入成長了 5%。隨著我們繼續向該業務中更具經常性的收入模式轉變，我們看到訂單的成長速度明顯快於收入的成長速度，本季成長了 30%。

The Sourcefire acquisition continues to perform very well, and there is no question that the Sourcefire acquisition has accelerated our position as a leading security company, and in our view, the only one capable of delivering an end-to-end architectural approach. We are very pleased with the performance of both Meraki and Sourcefire acquisitions as part of our build, buy, and partner innovation strategy.

Sourcefire 的收購持續表現良好，毫無疑問，Sourcefire 的收購加速了我們作為領先安全公司的地位，在我們看來，我們是唯一一家能夠提供端到端架構方法的公司。作為我們建構、購買和合作夥伴創新策略的一部分，我們對 Meraki 和 Sourcefire 收購的表現感到非常滿意。

Now moving on to collaboration, collaboration revenues declined 7%, with a decline of 9% year over year in the unified communications, as we plan for an upcoming product refresh with our customers, the WebEx conferencing business had a very strong quarter, up 21%. In WebEx we saw many matrix, including billable minutes and new customer adoptions grow quite well. This growth came from both very large enterprise deals, as well as good traction in the SMB space.

現在轉向協作，協作收入下降了 7%，統一通訊收入年減 9%，因為我們計劃與客戶一起進行即將推出的產品更新，WebEx 會議業務本季表現非常強勁，成長了 21%。在 WebEx 中，我們看到許多矩陣，包括計費分鐘數和新客戶採用率成長相當良好。這種成長既來自於大型企業交易，也來自中小企業領域的良好發展勢頭。

It is worth noting that our goal to move more of Cisco's revenue to recurring is taking place today in our collaboration businesses, security businesses, and with respect to some of our recent acquisitions like Meraki. This quarter, we saw product deferred revenues increase approximately $100 million quarter over quarter. Over time, you will see us introduce new consumption models in other parts of our business that align with how our customers want to buy IT today, which will also help us drive better visibility going forward.

值得注意的是，我們的目標是將思科的更多收入轉化為經常性收入，目前這已在我們的協作業務、安全業務以及我們最近的一些收購（如 Meraki）中實現。本季度，我們看到產品遞延營收季增約 1 億美元。隨著時間的推移，您將看到我們在業務的其他部分引入新的消費模式，這些模式與客戶今天購買 IT 的方式一致，這也將有助於我們在未來提高可見度。

Service's revenue grew 3%, with both technical services and advanced services up 3%. As we discussed last quarter, service revenues are currently tied closely to product growth, so the deceleration in product momentum continues to impact service revenues. Continued investment in consulting services, remote monitoring smart services, and analytics, will drive additional opportunities in the quarters to come. We did begin delivering a new set of security services this quarter, continuing to better address our customers' top priorities.

服務收入成長 3%，其中技術服務和高級服務均成長 3%。正如我們上個季度所討論的那樣，服務收入目前與產品成長密切相關，因此產品成長動能的減速將繼續影響服務收入。對諮詢服務、遠端監控智慧服務和分析的持續投資將在未來幾季帶來更多機會。本季我們確實開始提供一套新的安全服務，繼續更好地解決客戶的首要任務。

Now onto our cloud business. While not reported as a specific product category but rather reflected across our product categories, continues to grow very well. On the cloud infrastructure side, we once again advanced our position as the leading cloud infrastructure provider.

現在談談我們的雲端業務。雖然沒有作為特定的產品類別進行報告，而是反映在我們的產品類別中，但仍繼續保持良好的成長。在雲端基礎設施方面，我們再次提升了作為領先雲端基礎設施供應商的地位。

In Q2, we saw double-digit booking growth, with massively scalable data center customers, as they chose and purchased the Cisco UCS and Nexus portfolio. Our cloud services business also continued very strong growth. As mentioned before, we experienced very strong growth in Meraki, WebEx and security cloud services business.

在第二季度，我們看到了兩位數的預訂量成長，因為大規模可擴展的資料中心客戶選擇併購買了思科 UCS 和 Nexus 產品組合。我們的雲端服務業務也持續強勁成長。如前所述，Meraki、WebEx 和安全雲端服務業務經歷了非常強勁的成長。

At Cisco Live in Milan, in January, we announced several important additions to our cloud portfolio, including Cisco InterCloud, the ability to create interoperability and highly secure hybrid cloud environments across multiple public and private clouds. While peers count workload mobility within their proprietary cloud offerings, only Cisco can enable organizations to combine and move workloads, storage, compute, and applications. Across different clouds, and hypervisors, securely, with all the associated network and security policies.

今年 1 月，在米蘭舉行的 Cisco Live 上，我們宣布了雲端產品組合的幾項重要補充，其中包括 Cisco InterCloud，它能夠在多個公有雲和私有雲之間創建互通性和高度安全的混合雲環境。雖然同業在其專有雲端產品中考慮工作負載移動性，但只有思科能夠讓組織組合和行動工作負載、儲存、運算和應用程式。跨不同的雲端和虛擬機器管理程序，安全地使用所有相關的網路和安全策略。

I will now move on to provide background on our geographic and customer segments in terms of Q2 year-over-year product orders, unless specifically stated otherwise. In Q2, product orders declined 4% year over year, and as we said earlier, total product book-to-bill was greater than 1.

我現在將根據第二季度同比產品訂單提供有關我們地理和客戶細分的背景信息，除非另有明確說明。第二季度，產品訂單年減 4%，正如我們之前所說，總產品訂單出貨比大於 1。

To provide a geographic view of orders this quarter, Americas declined 5%, in the US, balancing out strong enterprise and commercial momentum, US public sector declined 4% Within US public sector, state, local, and education grew 7% and US federal declined 16%. US service providers declined 11%, as we managed through the SP video transition, and product cycles mentioned earlier.

從地理角度看本季的訂單情況，美洲地區下降了 5%，在美國，抵消了強勁的企業和商業勢頭，美國公共部門下降了 4%。在美國公共部門中，州、地方和教育部門成長了 7%，而美國聯邦政府則下降了 16%。由於我們成功度過了 SP 視訊轉型以及前面提到的產品週期，美國服務供應商的市佔率下降了 11%。

Now moving onto Asia-Pacific, China, and Japan, which as a region declined 5%. China declined 8%, as we and our peers continue to work through the economic and political dynamics in that country.

現在轉向亞太地區，中國和日本作為一個地區下降了 5%。隨著我們和我們的同行繼續研究中國的經濟和政治動態，中國經濟下降了 8%。

The Europe, Middle East, Africa, and Russia region declined 2%. Northern Europe and the UK are showing good momentum, while southern Europe continues to be challenging. Signs suggest Europe is stabilizing, though still fragile, especially in the South.

歐洲、中東、非洲和俄羅斯地區下降了 2%。北歐和英國表現出良好的勢頭，而南歐則繼續面臨挑戰。有跡象顯示歐洲正在穩定，但仍然脆弱，尤其是南部地區。

Moving on to a segment view, enterprise declined 2%, commercial grew 1%, public sector grew 1% on a global basis, and as mentioned above, service providers declined 12%. As we said in our last call, managing through product and market cycles is part of being a leader in the technology industry.

從細分角度來看，全球範圍內，企業下降了 2%，商業成長了 1%，公共部門成長了 1%，而如上所述，服務提供者下降了 12%。正如我們在上次電話會議中所說，管理產品和市場週期是成為科技產業領導者的一部分。

We feel very confident in our ability to work through these cycles, over the coming quarters. We will continue to tell you exactly what we see, and manage the business to perform to the expectations we set with you, as we did this quarter.

我們對自己在未來幾季內渡過這些週期的能力充滿信心。我們將繼續準確地告訴您我們所看到的情況，並管理業務以達到我們為您設定的期望，就像我們本季所做的那樣。

Frank, I'm now going to turn it back over to you.

法蘭克，現在我要把話題還給你。

Let me provide a few comments and our outlook for the third quarter. Let me remind you again that our comments include forward-looking statements.

讓我提供一些評論和對第三季的展望。讓我再次提醒您，我們的評論包括前瞻性陳述。

You should review our recent SEC filings, that identify important risk factors and understand that actual results could materially differ from those contained in these forward looking statements, and that actual results could be above or below our guidance. The guidance we are providing is on a non-GAAP basis, with a reconciliation to GAAP.

您應該查看我們最近向美國證券交易委員會提交的文件，其中列出了重要的風險因素，並了解實際結果可能與這些前瞻性陳述中的結果有重大差異，並且實際結果可能高於或低於我們的預期。我們提供的指導是基於非 GAAP 基礎的，並與 GAAP 進行協調。

As John discussed earlier, we expect total revenue to decline in the range of 6% to 8% on a year-over-year basis. For the third quarter, we anticipate non-GAAP gross margin to be in the range of 61% to 62%. Given the business volumes assumed in our revenue guidance, it is most likely to be at the low end of this range.

正如約翰之前所討論的，我們預計總收入將年減 6% 至 8%。對於第三季度，我們預計非公認會計準則毛利率將在 61% 至 62% 之間。考慮到我們的收入指導中假設的業務量，它很可能處於該範圍的低端。

Our non-GAAP operating margin in Q3 is expected to be in the range of 26.5% to 27.5%, and our non-GAAP tax provision rate is approximately 21% in the third quarter. Our Q3 FY14 non-GAAP earnings per share is expected to be in the range of $0.47 to $0.49 per share. As we communicated last quarter, we expect FY14 non-GAAP earnings per share to range from $1.95 to $2.05.

我們第三季的非公認會計準則營業利潤率預計在 26.5% 至 27.5% 之間，第三季的非公認會計準則稅務準備率約為 21%。我們預計 2014 財年第三季非 GAAP 每股盈餘將在 0.47 美元至 0.49 美元之間。正如我們上個季度所傳達的，我們預計 2014 財年非 GAAP 每股盈餘將在 1.95 美元至 2.05 美元之間。

We anticipate our GAAP earnings to be lower than non-GAAP EPS by about $0.10 to $0.13 per share in Q3 2014, and $0.56 to $0.62 for the full year. This range includes a pretax impact of approximately $50 million in Q3 FY14, and up to $550 million for the full year, as a result of our anticipated restructuring charges, related to our workforce reduction plan that we announced last quarter.

我們預計，2014 年第三季我們的 GAAP 每股盈餘將比非 GAAP 每股盈餘低約 0.10 美元至 0.13 美元，全年每股盈餘將比非 GAAP 每股盈餘低 0.56 美元至 0.62 美元。這一範圍包括 2014 財年第三季約 5,000 萬美元的稅前影響，以及全年高達 5.5 億美元的稅前影響，這是由於我們上個季度宣布的裁員計劃相關的預期重組費用造成的。

During Q2 FY14, we recognized pretax charges to our GAAP financial statements of $73 million, related to that announcement. Please see the slides that accompany this webcast for more detail.

在 2014 財年第二季度，我們確認了與該公告相關的 GAAP 財務報表稅前費用 7,300 萬美元。請參閱此網路廣播隨附的幻燈片以了解更多詳細資訊。

Other than those quantified items noted previously, there are no other significant differences between our GAAP and our non-GAAP guidance. This guidance assumes no additional acquisitions, asset impairments, restructurings, and tax or other events, which may or may not be significant. And as a reminder, Cisco will not comment on its financial guidance during the quarter, unless it is done through an explicit public disclosure.

除了先前提到的量化項目之外，我們的 GAAP 和非 GAAP 指導之間沒有其他重大差異。本指南假設不存在額外的收購、資產減損、重組以及稅務或其他事件，這些事件可能重大，也可能不重大。需要提醒的是，思科不會對本季的財務指引發表評論，除非透過明確的公開揭露。

I'll now hand the call back over to John for detail on our business momentum and trends. John?

我現在將電話交還給約翰，以詳細了解我們的業務發展勢頭和趨勢。約翰？

Frank, thank you very much.

弗蘭克，非常感謝。

Managing transitions has been a core foundation for of our success for nearly 30 years.

近 30 年來，管理過渡一直是我們成功的核心基礎。

The Internet of Everything is the biggest market opportunity ahead, encompassing every technology trend in the market today. In recent months, the Internet of Everything has become the center of most every conversation with CEOs, industry, and country leaders. 2014 will be the inflection point for the Internet of Everything.

萬物互聯是未來最大的市場機遇，涵蓋了當今市場上的每一種科技趨勢。近幾個月來，萬物互聯已經成為執行長、產業和國家領導人幾乎每次談話的中心話題。2014年將成為萬物互聯的轉捩點。

The level of excitement we see in the conversations we're having today and with customers about the next wave of the Internet, reminds me of the mid-1990s. At that time, we saw the Internet and e-commerce moving from just a tech thing to something that did impact every industry. Like customers did when the Internet and e-commerce were becoming mainstream, customers are turning to Cisco as a trusted partner today, to capitalize on the opportunity, and minimize the risk in their business, as they move into the Internet of Everything.

我們今天在與客戶談論下一波網路浪潮時所看到的興奮程度，讓我想起了 20 世紀 90 年代中期。當時，我們看到網路和電子商務從單純的技術產品發展成為影響每個產業的產品。就像網路和電子商務成為主流時客戶所做的那樣，如今客戶也紛紛將思科視為值得信賴的合作夥伴，在進入萬物互聯時代的過程中抓住機遇，最大限度地降低業務風險。

As we saw in the e-commerce space, there's a lag between thought leadership and mainstream adoption, and we still are only in the beginning stages. We are seeing tangible early traction. For example, in our top 50 targeted accounts, with over a $2 billion opportunity for Cisco. We are managing the transitions in our portfolio today, and building for the Internet of Everything for tomorrow.

正如我們在電子商務領域看到的那樣，思想領導和主流採用之間存在滯後，而且我們仍處於起步階段。我們看到了切實的早期牽引力。例如，在我們排名前 50 位的目標客戶中，思科擁有超過 20 億美元的機會。我們正在管理當今投資組合的轉型，並為未來的萬物互聯做好準備。

This is how I'm looking and evaluating our progress: First, our willingness to change and disrupt. You've heard me say for at least two years the pace of change has become exponential.

我對我們所取得的進展的觀察和評估如下：首先，我們願意改變和打破常規。你們已經聽我說過，至少兩年來，變化的速度已經呈指數級增長。

Multiple transitions are occurring at the same time, requiring Cisco to transform on multiple fronts, faster than we've done before. Our scale, customer relationships, and number one market position in most of our targeted categories gives us a huge advantage, as we deliver a new model for IT.

多重轉變正在同時發生，要求思科在多個方面進行轉型，而且速度比以前更快。我們的規模、客戶關係以及在大多數目標類別中的頭號市場地位為我們帶來了巨大的優勢，因為我們為 IT 提供了一種新的模式。

The next generation of network will collapse the OSI stock from seven layers to three, bringing applications, networking, and security together at scale. This will not only happen in the data center as we are seeing today, but across the campus, access, and into the cloud.

下一代網路將把 OSI 存量從七層縮減為三層，從而將應用程式、網路和安全性大規模地整合在一起。這不僅會像我們今天所見那樣發生在資料中心，還會在整個校園、接取網路和雲端發生。

Second, customer traction. We don't get to decide whether or not we will emerge as the number one IT company, our customers do. What we do get to decide is how we continue to deliver the value to our customers, to retain the market-leading position.

第二，客戶牽引。我們無法決定我們是否會成為第一大 IT 公司，而我們的客戶才能決定。我們要決定的是如何繼續為客戶提供價值，以維持市場領先地位。

This will be done by selling business outcomes enabled by architectures. I look closely at how we are engaging with customers, and moving from a technology provider to a trusted business partner. Whether it is the $3 billion of value created in the City of Barcelona through connected intelligent infrastructure, or the first digital country, Israel, or several major retailers basing their networks on Cisco in order to prepare for the Internet of Everything, our customers are coming to us to capitalize on the opportunity.

這將透過銷售架構所實現的業務成果來實現。我密切關注我們如何與客戶互動，以及如何從技術提供者轉變為值得信賴的業務合作夥伴。無論是巴塞隆納市透過連網智慧基礎設施創造的 30 億美元價值，或是首個數位化國家以色列，亦或是幾家以思科為基礎建立網路以迎接萬物互聯的大型零售商，我們的客戶都紛紛向我們尋求機會。

Third, operational excellence and disciplined cost management. We manage non-GAAP operating expenses very well this quarter, decreasing 9%, as we focused on cost management and productivity.

第三，卓越營運和嚴格的成本管理。本季度，我們非常有效地管理了非公認會計準則營運費用，減少了 9%，因為我們專注於成本管理和生產力。

This execution shows we are able to focus on cost as we transition the business. We continue to focus on operating as an efficient organization, while at the same time, making the right investments to drive long-term growth.

這次執行顯示我們在業務轉型時能夠專注於成本。我們將繼續致力於高效營運組織，同時進行正確的投資以推動長期成長。

Fourth, creating shareholder value. As we execute our strategy to become the number one IT company, we have also committed to returning at least 50% of cash flow annually to our shareholders. As Frank said earlier, we will comfortably exceed this amount for the balance of the fiscal year.

第四，創造股東價值。在我們實施成為第一大 IT 公司的策略的同時，我們也承諾每年向股東返還至少 50% 的現金流。正如弗蘭克之前所說，在本財政年度的剩餘時間裡，我們將輕鬆超過這個數字。

When our operating results have been impacted by a challenging macro environment in the emerging markets, along with choices we are making to transform the Company, we've demonstrated our confidence in the future and our support for shareholders, by materially increasing our capital return, as we did last quarter. We continue this focus on shareholder value with the $4 billion share repurchase this quarter, and the dividend increase we announced today.

當我們的經營業績受到新興市場充滿挑戰的宏觀環境以及我們為改造公司而做出的選擇的影響時，我們透過大幅提高資本回報率（就像上個季度所做的那樣）表明了我們對未來的信心和對股東的支持。我們繼續關注股東價值，本季回購了 40 億美元的股票，並於今天宣布增加股利。

Change has always been good for Cisco, and our track record for transforming ourselves, both as a company, and as leaders, is unparalleled. We are as close to our customers and partners as ever.

變革對思科來說總是有益的，我們作為一家公司和作為領導者在自我變革方面的業績記錄是無與倫比的。我們與客戶和合作夥伴的關係一如既往地密切。

We understand their challenges, and where they need us to be there, and we are using this position to build the products, solutions, and platforms to meet the demand for the market. This, to me, has always been the key leading indicator of future success and financial results, and gives me confidence that we will emerge as the number one IT company.

我們了解他們面臨的挑戰，以及他們需要我們做什麼，我們正在利用這一優勢來建立產品、解決方案和平台，以滿足市場需求。對我來說，這一直是未來成功和財務表現的關鍵領先指標，並讓我相信我們將成為第一大 IT 公司。

Mel, let me turn it over to you.

梅爾，讓我把它交給你。

Great. Thank you, John. We'll now open the floor to Q&A.

偉大的。謝謝你，約翰。我們現在開始問答環節。

We still request that sell side analysts please ask only one question. Operator, please open the floor to questions.

我們仍然要求賣方分析師只問一個問題。接線員，請開始提問。

(Operator Instructions)

（操作員指示）

Jess Lubert, Wells Fargo Securities.

傑斯‧盧伯特 (Jess Lubert)，富國證券。

Question's on the product gross margin, which declined quite a bit sequentially, and was at the lowest level we've seen in a while. And you went through some of the volume and mix issues in the call, so I was hoping you could touch upon the competitive environment, from both traditional and non-traditional vendors. To what degree there was any change in pricing.

問題是關於產品毛利率的，其環比下降幅度很大，處於一段時間以來的最低水平。您在電話會議中談到了一些數量和組合問題，所以我希望您能談談來自傳統和非傳統供應商的競爭環境。價格發生何種程度的變動。

And perhaps beyond Q3, do you think you can get the gross margin back towards the mid-to upper end of the 61% to 62% gross margin range as volumes improve and new product ramp. Or should we be thinking about the lower end of this range longer-term?

也許在第三季之後，隨著銷量的提高和新產品的增加，您是否認為毛利率可以回到 61% 至 62% 毛利率範圍的中高端？或者我們應該長期考慮這個範圍的下限？

Frank, I'm going to have you handle the second part. The first part, there was nothing abnormal about this quarter's pricing trends at all. No abnormality in terms of competitors we saw, new or existing models, or new start ups.

法蘭克，我打算讓你處理第二部分。第一部分，本季的價格趨勢沒有任何異常。就我們所看到的競爭對手而言，無論是新的或現有的車型，還是新的新創企業，都沒有異常。

The field is going to go after key wins. And opportunities to capture major franchises in key strategic, beginning of architectural plays. And I think it's good, as we begin to drive for growth.

該領域將追求關鍵勝利。並有機會在關鍵策略、建築戲劇的開始階段奪取主要特許經營權。我認為這很好，因為我們開始推動成長。

In terms of the timing, what we said traditionally in terms of the growth, you watch our order improvements, you watch our steady progress each quarter, which I think we've done up to this point in time, and we're going to do it again this next quarter, and you will see as we come through these product transitions at the high-end routing and switching. And as you see us begin to core our service provider strategy more together, you will see these turns up in Q4 and Q1 and Q2, in terms of momentum from an order perspective. Frank, I'm going to switch it over to you in terms of gross margin comments.

就時間而言，我們傳統上所說的成長方面，您可以看到我們的訂單改善，您可以看到我們每個季度的穩步進展，我認為到目前為止我們已經做到了這一點，並且我們將在下個季度再次這樣做，並且您將看到我們在高端路由和交換方面完成這些產品轉型。當您看到我們開始更加緊密地整合我們的服務提供者策略時，從訂單角度來看，您將在第四季度、第一季和第二季度看到這些變化。弗蘭克，我將把有關毛利率的評論交給你。

Jess, as I mentioned, we came in at 61.3% within the range of 61% to 62% and provide guidance in the range of 61% to 62% for the next quarter and saying that's at the low end of that range. Primarily in Q2 as well as Q3, the issue is volume.

傑西，正如我所提到的，我們的預期為 61.3%，處於 61% 到 62% 的範圍內，我們對下一季度的預期為 61% 到 62% 範圍內，並表示這是該範圍的低端。主要在第二季度和第三季度，問題在於數量。

So to answer your question, and that's driving mostly the costs as well as the mix that I talked about, so as volume does improve, that gives us the ability to also improve the gross margin. So when I think about it from a long-range perspective, we talked about 61% to 62% for some period of time, as volume improves and we get into a more growth scenario from a top line perspective. That enables us to be the high end of that range, or even above that range.

所以回答你的問題，這主要是推動成本以及我談到的組合，因此隨著產量的提高，這也使我們能夠提高毛利率。因此，當我從長遠角度考慮這個問題時，我們討論的是在一段時間內實現 61% 到 62% 的增長，因為隨著銷量的提高，從營收角度來看，我們進入了一個更具增長前景的情景。這使我們能夠達到該範圍的高端，甚至高於該範圍。

Great. Thanks.

偉大的。謝謝。

When you think about it, Jess, we have control of our pricing, our expenses, and gross margins. And we're managing these as levers.

傑西，想想看，我們可以控制我們的定價、費用和毛利率。我們把這些當作槓桿來管理。

As volumes come back, as Frank said, and I believe very firmly that they will, you will see the gross margins improve as well. But reminding everybody for the last couple years, I've been saying gross margins would be in the 61% to 62% range, and plus or minus 1% or 2%, and I think middle of the last time we said that, very openly, was in fact in 2012.

正如弗蘭克所說，隨著銷量的回升，而且我堅信銷量會回升，你會看到毛利率也會提高。但要提醒大家的是，過去幾年裡，我一直在說毛利率將在 61% 至 62% 的範圍內，上下浮動 1% 或 2%，而且我認為我們上一次非常公開地這麼說實際上是在 2012 年。

Absolutely. Thanks, Jess. Operator, next question?

絕對地。謝謝，傑西。接線員，下一個問題？

Amitabh Passi, UBS.

瑞銀的阿米塔布·帕西 (Amitabh Passi)。

John, what is the risk that you've got yourself too spread across too many areas, where you're fighting multiple battles on multiple fronts, with just a massive rate of flux in each of your markets? And the reason I ask is, I'm a little surprised at the service provider segment for you continues to remain relatively weak.

約翰，如果您的業務範圍過於分散，涉足太多領域，在多個戰線上進行多場戰鬥，並且每個市場都變化劇烈，那麼這種風險是什麼？我之所以問這個問題，是因為我對你們的服務提供者領域仍然相對疲軟感到有些驚訝。

NCS has been up for some time, so I'm surprised we're not seeing any traction there. So I'd love to get your thoughts in terms of the portfolio, is there room for further rationalization, are you spread too thin?

NCS 已經上線一段時間了，所以我很驚訝我們還沒有看到任何進展。所以我很想聽聽您對投資組合的看法，是否有進一步合理化的空間，您的投資組合是否分散了？

Okay. So first, the answer is no.

好的。所以首先，答案是否定的。

If you watch if you are a single product company in today's market, you're going to have a real tough time competing against a number of different competitors, and differentiating yourself. We saw these trends coming, and we've articulated for four or five years the importance of architectures, where you combine products that combine 13 products that are number one in their field, four products that are number 2 in terms of market share, and two product areas that are number three.

如果你是當今市場上的單一產品公司，那麼在與眾多不同的競爭對手競爭並脫穎而出時，你將面臨真正的困難。我們預見了這些趨勢的出現，並且我們在四五年內一直在強調架構的重要性，在架構中，你可以將 13 種在各自領域排名第一的產品、4 種在市場份額方面排名第二的產品以及 2 種在產品領域排名第三的產品組合在一起。

You combine these into architectures with services and partners that very quickly bring you to solutions and dramatic differentiation. And that is what you're seeing them play very strongly in the US commercial and US enterprise, as proof points.

您可以將這些與服務和合作夥伴結合到架構中，快速為您帶來解決方案和顯著的差異化。這就是你所看到的他們在美國商業和美國企業中發揮著非常強大的作用，作為證明點。

The second part of your question in terms of service provider, we basically are again going with an architectural approach. We are literally saying how do you influence the key issues that are most important to the service provider, from mobility, to video, to cloud, to speed of services delivery, to reducing OpEx and CapEx and say how you approach these as an architectural approach? So I think this will be an industry where architectures will win, and I think we are very well-positioned versus our key traditional IT players and future challengers.

關於服務提供者的問題的第二部分，我們基本上再次採用了架構方法。我們實際上是在說，您如何影響對服務提供者最重要的關鍵問題，從行動性、視訊、雲端、服務交付速度到降低營運支出和資本支出，以及如何透過架構方法來處理這些問題？因此，我認為這將是一個架構將獲勝的行業，我認為我們相對於主要的傳統 IT 參與者和未來的挑戰者處於非常有利的地位。

Great. Thanks, Amitabh. Next question, operator?

偉大的。謝謝，阿米塔布。接線員，下一個問題是什麼？

Subu Subrahmanyan, The Juda Group.

Subu Subrahmanyan，猶大集團。

My question is on the product transitions you're seeing. Is there any way to quantify the impact of data center transition and core routing product trends on this quarter?

我的問題是關於您所看到的產品轉型。有沒有辦法量化資料中心轉型和核心路由產品趨勢對本季的影響？

John as you look at the recovery in these, is there a timing expectation, which one will rebound first? Between these two?

約翰，當你觀察這些復甦時，是否有時間預期，哪一個會先反彈？這兩者之間？

Sure. As you look at it, let's go to the data center, and let's go to switching. If you watch and use the Nexus 9000 as an example, our product pipeline is up to 522 customers. That's almost a 2.9% increase quarter-over-quarter.

當然。正如您所看到的，讓我們進入資料中心，然後進行切換。如果您觀察並使用 Nexus 9000 作為範例，我們的產品線已多達 522 位客戶。這幾乎比上一季增長了 2.9%。

Our win rate is extremely good versus traditional players and new challengers. You'll see us, over the next four to five quarters, blow by some of the early start-ups in this area.

我們在與傳統玩家和新挑戰者對抗中的勝率都極高。在接下來的四到五個季度裡，你會看到我們超越該領域的一些早期新創公司。

And if you look at the transition, I think you'll watch our orders in Q4 and Q1 in this area, and we're going to follow a path very similar to what we did in UCS, a similar game plan that this team, that has done so many times before from a technology perspective, we will put in place our steps in terms of how we identify the top customers, how we get the close rates, how we ramp the volume. And at the same time tie that's what we're doing in the Nexus 7000 and below in the terms of the data center.

如果你看一下轉變，我想你會看到我們在這個領域第四季度和第一季度的訂單，我們將遵循與在 UCS 中所做的非常相似的道路，這是一個類似的遊戲計劃，這個團隊以前從技術角度已經做過很多次了，我們將在如何識別頂級客戶、如何獲得成交率、如何提高銷量方面採取措施。同時，在資料中心方面，我們在 Nexus 7000 及以下版本中也做了同樣的事情。

In terms of the routing, the routers are a little bit longer sales cycle. As you know, when you put these routers that have such tremendous capability and function where you can literally transferred the whole Library of Congress in a second or the Netflix library in a second, you basically are talking about tremendously powerful capabilities, with the NCS and CRS-X.

就路由而言，路由器的銷售週期稍微長一些。如您所知，當您使用這些具有如此強大功能和能力的路由器時，您可以在一秒鐘內傳輸整個國會圖書館或在一秒鐘內傳輸整個 Netflix 庫，您基本上是在談論 NCS 和 CRS-X 的極其強大的功能。

That will take it a little bit longer. I'd watch our franchise wins in Q3, and then you should begin to see orders pick up in Q4 and Q1 on those. Little bit longer sales cycle in terms of implementation.

這需要更長的時間。我會在第三季看到我們的特許經營權獲勝，然後你應該會看到第四季和第一季的訂單增加。從實施角度來看，銷售週期稍長。

Great. Thanks, Subu. Operator, next question?

偉大的。謝謝，Subu。接線員，下一個問題？

Brian Modoff, Deutsche Bank.

德意志銀行的 Brian Modoff。

Continuing on -- switching the Nexus 9000 order ramp, will we see that this quarter? Our checks in continue to indicate more of an evaluation phase of that product still. Will we start seeing that ramp this quarter?

繼續 - 切換 Nexus 9000 訂單坡道，我們會在本季看到嗎？我們的檢查繼續表明該產品仍處於評估階段。我們會在本季開始看到這種成長嗎？

Will that help get switching back into positive territory heading into July, and into fiscal 2015? And then can you give us an update on campus switching, and how that's doing? Thank you.

這是否有助於在 7 月以及 2015 財年恢復正成長？然後您能否向我們介紹一下校園轉換的最新情況以及進展如何？謝謝。

Sure. Rob, I'm going to give you the campus switching piece. Let me go to the Nexus piece.

當然。羅布，我要跟你講一下校園轉換的事情。讓我來談談 Nexus 部分。

Literally I review almost every other week with the team where we are on this. Reminding everyone, this team has never missed in terms of our telephony approach, our combination of storage, with the network, with processors that really made us a major player in the data center, and now what you watch on this one, you're going to see a steady ramp to where we will just pick up momentum in key accounts, and we're tracking those key accounts.

實際上，我幾乎每隔一周就會與團隊一起回顧我們的進展。提醒大家，就我們的電話方法、儲存與網路、處理器的結合而言，這個團隊從未失手，這讓我們成為資料中心的主要參與者，現在你看到的是，我們將穩步上升，我們將在關鍵客戶中獲得發展勢頭，我們正在追蹤這些關鍵客戶。

The volumes are small. We won one for example today that is a huge opportunity, but it was the first opportunity to get the door and the foot. So we deal with first getting the pilots in, and then scale, but this is a product that is extremely competitive, and every aspect of the commitments they've made on the product are on schedule on the quarters that they committed to.

體積很小。例如，我們今天贏得了一個進球，這是一個巨大的機會，但這是第一次獲得門和腳的機會。因此，我們首先要進行試點，然後再擴大規模，但這是一個極具競爭力的產品，他們對產品做出的每個承諾都按時按季度完成。

So I feel very comfortable with the product ramps on this. And as you begin to see the Nexus 7000 and 9000 both available in the market, then you will move through, perhaps a little bit of pause, where customers are saying, which way do I go? And I have a hesitation here. Rob, additional thoughts on campus?

所以我對於這個產品的推廣感到非常滿意。當你開始看到 Nexus 7000 和 9000 在市場上銷售時，你就會經歷一段短暫的停頓，客戶會問，我該選擇哪一款？我在這裡有些猶豫。羅布，您對校園還有什麼想法嗎？

John, in addition to the data center, I think that the entire two big transitions, which are from 1 gig to 10, and now from 10 to 40, are playing to the strongest hand we've had in terms of our portfolio. 3 So we have a product for every part of the market right now. And you covered some of the data center technologies.

約翰，除了資料中心之外，我認為整個兩個大的轉變，即從 1G 到 10G，以及現在從 10G 到 40G，都發揮著我們投資組合中最強大的作用。3 因此，我們現在有適合市場各部分的產品。您也介紹了一些資料中心技術。

We haven't talked about the new 40 gig uplinks on our Nexus 5000, an important part of the product. And of course the 10 and 40 gig links on the campus switch, which is a 68000. So right across the board, great portfolio strength, and you mentioned it, but we do have the pedal to the metal on the 10 to 40 gig transition, and I think you're going to see some good market share movement in the quarters ahead.

我們還沒有談論 Nexus 5000 上的新 40 千兆上行鏈路，這是該產品的重要組成部分。當然還有校園交換器上的 10 和 40 千兆鏈路，即 68000。所以從各方面來看，我們的投資組合實力都很強大，正如您所提到的那樣，但我們確實在從 10 到 40 千兆的轉變上全力以赴，我認為您將在未來幾個季度看到良好的市場份額變動。

I think the market share gains of that are going to be dramatic.

我認為其市場份額將會大幅成長。

Great. Thanks, Brian. Operator, next question?

偉大的。謝謝，布萊恩。接線員，下一個問題？

Ittai Kidron, Oppenheimer.

伊泰·基德倫，奧本海默。

John, I want to focus on two specific segments, the wireless and the data center. Both for a couple of quarters now, have either completely flattened out, or in the wireless cases, have even declined on a sequential basis.

約翰，我想重點討論兩個特定的領域，即無線和資料中心。在過去的幾個季度裡，這兩種情況要么已經完全趨於平穩，要么在無線領域甚至出現了連續下降。

And I'm trying to understand, I understand, I would assume that some exposure there relates to emerging markets and that's probably one of the sources of the weakness But nevertheless, for you, those are very high growth opportunities especially on the server side and on the wireless, many of your competitors are still growing at a very nice clips. So I'm trying to understand if there's something going on in those two businesses that's not related to the macro issues you've been discussing.

我試著去理解，我理解，我認為那裡的一些風險敞口與新興市場有關，這可能是弱點之一，但儘管如此，對你來說，這些都是非常高的成長機會，特別是在伺服器端和無線領域，你的許多競爭對手仍在以非常好的速度成長。因此，我想了解這兩個企業中是否存在與您所討論的宏觀問題無關的事情。

First on the data center, the answer would be out and out no. If you watch the rate at which our orders come in, as I said in the script, the order rate was in the mid-30s. And this is more of a timing of shipments.

首先關於資料中心，答案肯定是否定的。如果你觀察我們的訂單進來的速度，正如我在腳本中所說的那樣，訂單率在 30% 左右。這更像是一種發貨時間。

Book to bill across most of our product lines you can do the math as quickly as I can, most all of them were in good shape in terms of book-to-bill. We truly built backlog in many of the categories. And I'd be very surprised if you don't see the numbers up in the 30% range this next quarter, with all the appropriate caveats.

您可以像我一樣盡快計算我們大多數產品線的訂單出貨比，大多數產品線的訂單出貨比狀況都很好。我們確實在許多類別中累積了積壓訂單。如果在下個季度，在出現所有相關警告的情況下，數字沒有上漲 30% 左右，我會感到非常驚訝。

That momentum feels good. We are very, very well-positioned versus competition. On the wireless side of the house, there were areas such as Meraki that were just very, very good, where you go with solutions and position it.

這種勢頭讓人感覺很好。我們在競爭中處於非常非常有利的地位。在房屋的無線方面，有一些區域（例如 Meraki）非常非常好，您可以在那裡提供解決方案並進行定位。

Some of the other wireless decisions on very large service provider decisions are long sales cycle, such as small cell, SB, Wi-Fi, et cetera on it. And I think you're going to see as we brought out some additional product functionality, that just came out with our wireless LAN capability, Rob, you'll see the orders in that category pick back up as we look out over the next couple quarters.

大型服務供應商所做的其他一些無線決策具有較長的銷售週期，例如小型基地台、SB、Wi-Fi 等等。而且我認為你會看到我們推出了一些額外的產品功能，例如我們的無線區域網路功能，羅布，展望未來幾個季度，你會看到該類別的訂單量回升。

So on the data center, we're going to win that one, and I think you see tremendous momentum there. And we have no fear here. That one really feels good.

因此，在資料中心方面，我們將會贏得勝利，我認為你會看到那裡的巨大動力。我們在這裡沒有恐懼。那感覺確實很好。

And then in terms of the wireless, there are a couple areas that we need to pick momentum back on. Rob, I think we know what we want to do on that. You talked that group the other day, I think.

就無線領域而言，我們需要在幾個領域重新獲得發展動力。羅布，我想我們知道我們想做什麼。我想，前幾天你和那個小組談過。

I talked to them the other day, and again this morning, so we've got some actions in place.

我前幾天和他們談過，今天早上又談過一次，所以我們已經採取了一些行動。

Sounds good.

聽起來不錯。

Great. Thanks, Ittai. Operator, next question?

偉大的。謝謝，伊泰。接線員，下一個問題？

Paul Silverstein, Cowen.

保羅·西爾弗斯坦，考恩。

I'm hoping you treat this a clarification, but let me give it a shot. Going back to gross margin, I just want to confirm something.

我希望您能澄清這一點，但請讓我嘗試一下。回到毛利率問題，我只是想確認一些事情。

With respect to the pricing environment, I think John, if I go back to the previous quarter, you all were fairly assertive in your commentary about the health of pricing, especially with the new products, that they were coming in consistent with your current margin structure. So returning to this quarter, is it essentially a volume issue, or when we look at pricing, when you look at the platforms has there been any change in terms of the margin profile of those new products in particular, and more generally in terms of the overall product portfolio?

關於定價環境，約翰，我想，如果我回顧上一季度，你們對定價健康狀況的評論都相當自信，特別是對於新產品，它們與您當前的利潤結構一致。那麼回到本季度，這本質上是一個數量問題，還是當我們看定價時，當你看平台時，這些新產品的利潤率狀況是否有任何變化，更普遍的是，就整體產品組合而言？

I heard your response on the call previously. Not an issue, but I just want to clarify to what extent is this a volume issue or is this something more?

我之前在電話裡聽到了您的回覆。這不是一個問題，但我只是想澄清一下，這在多大程度上是一個音量問題，還是還有其他問題？

Paul, great question. It allows me to expand on a little bit. It's purely a volume issue.

保羅，好問題。它讓我能夠稍微擴充一下。這純粹是音量問題。

If you look at costs, you look at mix, you look at pricing, et cetera, those three come together. Volume is what is driving each of the areas.

如果你看一下成本，看一下組合，看一下定價等等，這三者就結合在一起了。數量是推動每個領域發展的因素。

The area that you are being very gentle with me on, is you're saying all right, John, you're seeing unusual things in switching. Has that been a surprise? Even within the switching segment, our gross margins are remarkably stable, even with lower volume.

您對我非常溫柔的一點是，您說好吧，約翰，您在轉換過程中看到了不尋常的事情。這很令人驚訝嗎？即使在轉換領域，即使銷售量較低，我們的毛利率仍然非常穩定。

So we're not seeing anything unusual in the switching at all. We're very, very competitive. And as we mentioned before, Paul, these new products, which we're just now beginning to get out, and you haven't seen the effects on gross margins, are all coming in with gross margins that are very typical of our high-end gross margin.

所以我們根本沒有看到切換過程出現任何異常情況。我們的競爭力非常強。正如我們之前提到的，保羅，這些我們剛開始推出的新產品，您還沒有看到對毛利率的影響，它們的毛利率都是我們高端毛利率的典型值。

That's a much better job than we've ever done on high-end products, where usually we bring them out in the low 50s, and over literally almost two years, bring them back up to more traditional margins. So I feel good with that. So it's volume and volume ties to what the cost, what the mix, and what you see overall in terms of pricing in the field.

這比我們在高端產品上所做的工作要好得多，通常我們將高端產品的利潤率定在 50% 出頭，然後在近兩年的時間裡，將它們恢復到更傳統的利潤率。所以我對此感覺很好。因此，數量與成本、組合以及現場定價的整體情況有關。

Pricing in the field is a little bit up versus what we've seen before. But well within the range of what we see. A point plus or minus a half point.

與我們之前看到的相比，該領域的定價略有上漲。但這完全在我們所見的範圍內。加一分或減半分。

Great. Thanks, Paul. Operator, next question?

偉大的。謝謝，保羅。接線員，下一個問題？

Kulbinder Garcha, Credit Suisse.

Kulbinder Garcha，瑞士信貸。

Just a question on the services side. I think Frank mentioned early on in the call were services should follow product revenues, and I guess what we're seeing is that we're seeing the product revenues that obviously declining.

這只是關於服務方面的一個問題。我認為弗蘭克在電話會議早些時候提到服務應該遵循產品收入，我想我們看到的是產品收入明顯下降。

Can you upsell services to offset that, or is there risk that one or two quarters out, we start to see services maybe decline? How should we think about that dynamic?

您是否可以透過增加服務銷售來抵消這一影響，或者是否存在一兩個季度後我們開始看到服務下滑的風險？我們該如何看待這種動態？

And then just one for the clarification on gross margin if I can, are you saying that there's no real change in the pricing environment? It's all volume driven? The reason why I ask is that you knew that revenues were going to be pretty weak this quarter.

然後，如果可以的話，我想澄清一下毛利率，您是說定價環境沒有真正的變化嗎？都是音量驅動的嗎？我之所以問這個問題是因為您知道本季的營收將會相當疲軟。

And your guidance for lower gross margins will weaken part of this quarter, they are going to be relatively weak next quarter. So why aren't the cost efficiencies coming through, or is that more longer-term discussion?

而您對較低毛利率的預期將會削弱本季的部分錶現，下季的毛利率也會相對較弱。那麼，為什麼成本效率沒有實現呢，或者這是一個更長期的討論？

Any comment on that would be helpful. Thanks.

任何對此的評論都會有幫助。謝謝。

Gary, do you want to take the services one? I don't know if you could hear it or not.

加里，你想搭乘服務車嗎？我不知道你是否聽見了。

I think I do, John. Kulbinder, on the services, the services business is tightly tied to product, but we have added a number of services that John mentioned during the call earlier.

我想是的，約翰。Kulbinder，關於服務，服務業務與產品緊密相關，但我們增加了 John 先前在電話中提到的多項服務。

And those are ramping up, and the fact that our product decline has been what it's been, those services aren't coming up as fast, and offsetting that. But we're very happy with the way we've been able to drive continued growth in the services business, as well as continuing to drive the margins that we've had.

而且這些都在增加，而事實是我們的產品一直在下滑，這些服務的成長速度並沒有那麼快，從而抵消了這種影響。但我們對於能夠推動服務業務持續成長以及持續提高利潤率感到非常高興。

In terms of the gross margin comments?

對於毛利率的評論如何？

As far as the gross margin just to reiterate, so as far as the guidance that we gave last quarter, 61 to 62%, as I said, we came in at 61.3%, so we did assume the lower volume when we gave the guidance, and then also assuming the lower volume for Q3 and the guidance that just gave for the coming quarter.

就毛利率而言，我只想重申一下，就我們上個季度給出的指導意見而言，61% 到 62%，正如我所說，我們的實際利率為 61.3%，所以我們在給出指導意見時確實假設了較低的銷量，然後還假設第三季度的銷量較低，並且剛剛給出了下一季度的指導意見。

As far the volume and cost impact, so when you take your volume down, we have a fixed base within our manufacturing organization, things like logistics centers, things like the data center, that supports WebEx, and things like t hat. When you have lower volumes you're spreading that fixed base over those lower volumes, and therefore you don't get some of the magnitude of cost benefits that we have seen in prior quarters. So some of the initiatives that we're driving, like value engineering, we're continuing to drive those. We don't see the full impact when the funds are down, because it's offset by the fixed cost piece of it.

就數量和成本影響而言，當你減少數量時，我們在製造組織內有一個固定的基礎，例如物流中心、資料中心、支援 WebEx 之類的東西。當銷售量較低時，您會將固定基數分攤到這些較低的銷售量上，因此您無法獲得我們在前幾個季度看到的一些成本效益。因此，我們正在推動的一些舉措，例如價值工程，我們將繼續推動。當資金減少時，我們看不到全部影響，因為它被固定成本部分所抵消。

So as the volumes, as I said before, as the volumes improve, back to let's say, normal levels, then you can definitely start to realize those sufficiencies from a cost, and then also from a mix standpoint, as the volumes improve in switching and routing, which that was one that basically have the most delta on a quarter-on-quarter basis, which tend to have higher margins. That's going to overall affect the mix in a positive direction, so we're having those impacts in periods when the volumes are lower, and as the volumes improve, they should be upset.

因此，正如我之前所說，隨著交易量的提高，回到正常水平，那麼您肯定可以從成本上開始實現這些充分性，然後從組合的角度來看，隨著交換和路由交易量的提高，這基本上是季度環比增長最大的一個，往往具有更高的利潤率。整體而言，這將對組合產生正面的影響，因此，在交易量較低的時期，我們會受到這些影響，而隨著交易量的提高，他們應該會感到不安。

Very simple, if we were seeing major pricing pressures, we'd just tell you. And the switching is the prime example, where even in the product transition time period, the margins are remarkably stable on that.

很簡單，如果我們發現重大的價格壓力，我們就會告訴你。轉換就是最好的例子，即使在產品轉換期間，利潤率也非常穩定。

So we control the pricing, we control the expenses, control the gross margins. And we think we are positioned very well versus the changes in competition at this time.

因此，我們控制定價、控制費用、控制毛利率。我們認為，面對當前的競爭變化，我們處於非常有利的地位。

Great. Thanks, Kulbinder. Operator, next question?

偉大的。謝謝，庫爾賓德。接線員，下一個問題？

Mark Sue, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的馬克蘇 (Mark Sue)。

So I guess the bigger the better within our gross profit cash flow approach here. Some of your assets are past their peak cycle, and having a negative impact to your financial model.

因此，我認為我們的毛利現金流方法越大越好。您的一些資產已經過了高峰週期，並對您的財務模型產生了負面影響。

So are we at a point with where Cisco has to choose between customers and margins? And Cisco actually proactively look at some corporate ecology, so that we can actually have margin customers happy, and investors happy as well?

那麼，我們是否正處於思科必須在客戶和利潤之間做出選擇的階段？思科其實會主動關註一些企業生態，讓我們能真正讓利潤客戶滿意，讓投資人也滿意？

I think I got part of the question. The question is, do we have to choose between customers and margins? And I would say, the two actually come very tightly together.

我想我理解了部分問題。問題是，我們必須在客戶和利潤之間做出選擇嗎？我想說，這兩者實際上是緊密聯繫在一起的。

And this is something that I think we need to both articulate, and give you a feel for the examples. When you begin to look at an architectural sale, and I was just at Worldwide Tech this last week, WWT Technologies, and they this last year did about $2.8 billion as a partner reselling for us, growing in the high 20%s year-over-year. They aligned completely with us by architectures, and they aligned completely with us as we made the transition into the Internet of Everything.

我認為我們需要清楚地表達這一點，並讓你們透過例子來感受。當你開始關注建築銷售時，我上週剛去了 Worldwide Tech，WWT Technologies，去年他們作為我們的合作夥伴為我們轉售了約 28 億美元，同比增長率高達 20%。他們在架構上與我們完全一致，在我們轉型為萬物互聯時他們也與我們完全一致。

Bear with me as I walk through this, because you'll understand why I'm sharing this with you. They standardized on Cisco, and they literally build in their labs the architectures, and instead of interfacing the customers with white papers or slides, they basically say, here's what you can do through architectures, and it's why you have to have all of these 18 different product areas, to be able to get the result that you want, when you combine it with services, to get the outcomes much faster. And they already show that in each of their labs, with a capability to bring it to life, so you see the growth, you see the realization on it.

請耐心聽我講解，因為您會明白我為什麼要與您分享這一點。他們以思科為標準，並在實驗室中建立架構，而不是透過白皮書或幻燈片與客戶互動，他們基本上說，這是你可以透過架構做的事情，這就是為什麼你必須擁有所有這 18 個不同的產品領域，才能得到你想要的結果，當你將它與服務結合時，可以更快地獲得結果。他們已經在每個實驗室中展示了實現這一目標的能力，因此你看到了它的成長，並看到了它的實現。

On the Internet of Everything, they are already almost ahead of us, Gary, in terms of, they are already talking to areas like in mining, where you connect the sensors to all the equipment in a major mining operation. They get feeds, if you can imagine, probably 10,000 sensor feeds per second.

加里，在萬物互聯方面，他們幾乎已經領先我們，他們已經在談論採礦等領域，在採礦業中，你可以將感測器連接到大型採礦作業中的所有設備。如果你能想像的話，它們每秒大概會接收 10,000 個感測器回饋。

It goes into six or seven different databases applications. As you begin to think about the Internet of Everything and as they share that architecturally, you all of a sudden show by doing this how you can make the decisions with people, process, data, and things, much quicker get the right information at the right time to the right person, or device, or machine, to make the right decision.

它涉及六到七個不同的資料庫應用程式。當你開始思考萬物互聯，並且它們在架構上共享這一點時，你就會突然明白如何透過這種方式來對人員、流程、資料和事物做出決策，更快地在正確的時間將正確的資訊傳遞給正確的人、設備或機器，從而做出正確的決策。

So this is why you have to be in these various product areas. This is why when you bring those together your gross margins come up, because you're delivering results. This is what you don't want to be a single product group like a router, or a switch, or a wireless capability, et cetera.

這就是為什麼你必須涉足這些不同的產品領域。這就是為什麼當你把這些結合在一起時你的毛利率就會上升，因為你正在取得成果。您不希望將其作為單一產品群組，例如路由器、交換器或無線功能等。

You can get caught in a huge squeeze as you move forward, and it's that combination to provide gross margin capabilities. If you are in service providers, and of course we look at the analysis as we go forward, we're very much committed to the video side of the market, because video after voice is -- sorry video after mobile is their number one application area, that they really see differentiation in. And two-thirds of the load on mobile devices in just a year will be video.

在前進的過程中，您可能會陷入巨大的困境，而這種組合可以提供毛利率能力。如果你是服務供應商，當然，我們會在前進的過程中進行分析，我們非常致力於市場的視頻方面，因為繼語音之後的視頻——抱歉，繼移動之後的視頻是他們的首要應用領域，他們真正看到了差異化。僅一年時間，行動裝置上三分之二的負載將是影片。

So you have to be in these areas to really tie it together. Does that make sense?

所以你必須身處這些領域才能真正將它們連結在一起。這樣有道理嗎？

Helpful. Thank you.

很有幫助。謝謝。

Great, thanks, Mark. Operator, next question?

太好了，謝謝，馬克。接線員，下一個問題？

Ehud Gelblum, Citigroup.

花旗集團的埃胡德‧蓋爾布魯姆 (Ehud Gelblum)。

It's not a Cisco, if it was, it would be easier for me to figure out how to get off of mute. Couple clarifications, and a couple of questions. One big one, really.

它不是思科，如果是的話，我會更容易弄清楚如何擺脫靜音。一些澄清和一些問題。確實有一個很大的。

Clarifications, first, if you can give us Frank, because you're buying back some stock just what the ending quarter share count was, that would be helpful. And then a comment on linearity, if you could.

首先澄清一下，弗蘭克，如果你能告訴我們本季末的股票數量是多少，那將會很有幫助。如果可以的話，請對線性進行評論。

Clarification on the services business, I had thought at your analyst day in December, you said 80% of your services is maintenance. I had thought it was more a function of your installed base, than on quarter by quarter product revenue, so if you can clarify that?

關於服務業務的澄清，我以為在 12 月的分析師日上，您說過 80% 的服務是維護。我原以為它更多的是取決於您的安裝基礎，而不是取決於逐季度的產品收入，您能否澄清這一點？

And then my real question is about service provider. Service provider video obviously continues to fall. Is there a bottom, is there a spot that you can calculate it, and you look at your cost base where that bottoms out and should we be modeling that? And on core routers, is that a cyclical funk that we're in right now in core routing?

我真正的問題是關於服務提供者。服務提供者影片顯然繼續下滑。是否存在底部，是否存在可以計算的點，並且您可以查看底部的成本基礎，我們應該對其進行建模嗎？在核心路由器上，這是我們目前在核心路由中遇到的週期性低迷嗎？

You're getting so many questions I can't even write them down quick enough. Let me stop right there. And see if we go through it.

你的問題太多了，我甚至無法快速地把它們寫下來。我就此打住吧。看看我們是否能成功。

I'm going to take the linearity question. The quarter was very linear.

我要回答線性問題。本季表現非常線性。

No surprise on that at all, and played out much in the range that we do. With the first month being a little bit average and 25% let's say, second month a little bit more, and third month in the 40% to 45% range, depending on which quarter you're in. This quarter was very, very much in line with what we've traditionally seen in Q2s.

對此一點也不奇怪，而且在我們所做的範圍內發揮了很大作用。第一個月比較平均，大概是 25%，第二個月稍微高一點，第三個月在 40% 到 45% 的範圍內，取決於你所在季度。本季的表現與我們傳統上在第二季看到的情況非常一致。

I want to say so that everybody understands this, we exited the quarter with the best booking backlog, in terms of weeks, that we've seen in 10 years, in Q2. So the number of weeks of backlog we had was very solid, coming out of the quarter. Frank, I gave you a minute to look at the share count.

我想說的是，為了讓每個人都明白這一點，我們在第二季結束時，以周數計算，達到了 10 年來的最佳預訂積壓量。因此，從本季開始，我們的積壓訂單週數就非常穩定。法蘭克，我給你一點時間查看股票數量。

So the diluted share count, the average diluted share count at the end of the quarter was about 5,300, approximately 5,300 (sic -- see press release "5.3 million"). And as I said, it came down about approximately 100 million quarter-on-quarter, related to the buyback that we did, the $4 billion of buyback, that we did the past quarter.

因此，稀釋股數，本季末的平均稀釋股數約為 5,300，大約 5,300（原文如此 - 請參閱新聞稿「530 萬」）。正如我所說，與上一季相比，這一數字下降了約 1 億美元，這與我們上一季的 40 億美元回購有關。

I also noted that when you do the buyback over a period of time, depending on the timing, you don't get the full impact of the reduced share count. It takes another quarter. So we'll see a further reduction this coming quarter, and then whatever other additional buyback that we do in Q3 and Q4 will then reduce it even further.

我還注意到，當你在一段時間內進行回購時，根據時間安排，你無法獲得減少股票數量的全部影響。還需要一個季度。因此，我們將在下個季度看到進一步的減少，然後我們在第三季和第四季進行的其他額外回購都將進一步減少這個數字。

It also has offset any increase to the share count, related to options and RSUs and ESPP that normally increase, so we have offset that and then reduced it through the buyback. And our objective, as we said over a period of time, is to manage share count down over the next couple quarters and over the next several years, in order to help improve the return to shareholders.

它還抵消了與期權、RSU 和 ESPP 相關的股票數量的任何增加，這些增加通常會增加，因此我們抵消了這些增加，然後透過回購減少了這些增加。正如我們在一段時間內所說的那樣，我們的目標是在未來幾季和未來幾年內管理股票數量下降，以幫助提高股東回報。

Frank and I always provide a good balance. We're going to be aggressive in the market, you're going to see us well above our 50% free cash flow buyback, and we'll continue to be opportunistic there, much as we were in the first six months of this year.

弗蘭克和我總是能保持良好的平衡。我們將積極進取，您將看到我們的自由現金流回購遠高於 50%，我們將繼續抓住機會，就像今年前六個月一樣。

Gary, in terms of services, let me break the question in three pieces. First how much services is actually tied to the product side of the house?

加里，就服務而言，讓我把這個問題分成三個部分。首先，有多少服務實際上與房屋的產品方面相關？

And maybe a real quick discussion of technical services versus advanced services, and then advanced services, how over time, we're going to move to more outcome-based. All in two minutes.

也許我們會快速討論一下技術服務與高級服務，然後是高級服務，以及隨著時間的推移，我們將如何轉向更以結果為導向的服務。只需兩分鐘。

Or less. So the first part of that is roughly 80%, and that's a combination of technical support services, as well as advanced subscription services.

或更少。因此，第一部分約佔 80%，這是技術支援服務以及高級訂閱服務的組合。

Those contracts are normally one to three years, and you book them, and then you deal that revenue out over, on an equal basis over whether it's a 12-month deal or 36 months. So as product ramp, product revenue and bookings have ramped down over the last several quarters, there's no new attach to that, on either TS or AS.

這些合約通常為一到三年，您預訂它們，然後以平等的基礎分配收入，無論是 12 個月的合約還是 36 個月的合約。因此，隨著過去幾季產品產量、產品收入和預訂量下降，無論是 TS 還是 AS，都沒有出現新的變化。

On the business that is not subscription, the advanced services that are more advanced engineering, and capabilities around support services that are project oriented, when people aren't building out new networks, or we're not deploying large deployments, then that business also comes down, and that has come down fairly significantly, as well, over the last several quarters. We're ramping up in the areas that John mentioned around smart services, the analytics around that, as well as remote managed services, some large wins there, and we're really doubling down on our capability there.

對於非訂閱業務、更先進工程的高級服務以及以專案為導向的支援服務能力，當人們不建置新網路或我們不部署大型部署時，這些業務也會下降，而且在過去幾個季度中也下降得相當明顯。我們正在約翰提到的智慧服務、相關分析以及遠端管理服務等領域加大投入，並取得了一些重大勝利，我們正在加倍提升這些領域的實力。

And then we also shifted and brought together the we're building out a very architecturally oriented with technology people, as well, consulting services, and then security and we've already delivered some of that. And those are ramping up, and that's why we have this gap here. You'll find us being less dependent on product as we go forward, and you'll see us continue to manage that business extremely well, through automation of things that allow us to drive the margins we do.

然後，我們也進行了轉變，並將我們正在建構的以架構為導向的技術人員、諮詢服務以及安全性整合在一起，我們已經交付了其中的一些。這些都在不斷增加，這就是我們存在差距的原因。您會發現，隨著我們不斷前進，我們對產品的依賴程度會降低，而且您會看到我們繼續透過自動化來非常好地管理該業務，這使我們能夠提高利潤率。

So two real quick thoughts because I think you'll find services really make a difference in our future. Gary and I have given Edzard a challenge to move 50% of these advanced services to outcome based capabilities. That's only about 20% today. Very important in the transition.

所以有兩個真正快速的想法，因為我認為你會發現服務確實會對我們的未來產生影響。加里和我向埃德扎德提出了一個挑戰，將 50% 的先進服務轉向基於結果的能力。如今這一比例僅 20% 左右。在過渡期間非常重要。

If you look at the Internet of Everything, purely the consultancy piece, over the next several years, is $1 trillion market that we can address, and so you begin to look at us looking at this as a major new revenue scenario, versus the consultancy services, but more importantly pulling through our whole product architectures. And once again, going back, there's a reason that so many people fail with the Internet of Everything, they're doing cities. They do it one step at a time.

如果你看一下萬物互聯，那麼在未來幾年內，純粹的諮詢部分就是我們可以解決的 1 兆美元的市場，因此你開始看到我們將其視為一個重要的新收入場景，而不是諮詢服務，但更重要的是貫穿我們的整個產品架構。再次回顧一下，許多人在萬物互聯方面失敗是有原因的，因為他們正在建造城市。他們一步一步地做。

It is complex, it's got to be able to scale, it's got to have the architectures all coming together, it's got to be mobile, it's got to be data center, it's got to be analytics at the edge, it's got to be secure, it's got to be collaborative, and you have to have a game plan to bring these customers together, and just using cities or countries as an example, when you bring them together with these architectures, that's why you win. That's why you see a digital Israel where literally our business grows in the high teens year after year, because of what we've done together there.

它很複雜，它必須能夠擴展，它必須將所有架構整合在一起，它必須是移動的，它必須是資料中心，它必須是邊緣分析，它必須是安全的，它必須是協作的，你必須有一個遊戲計劃來將這些客戶聚集在一起，僅以城市或國家為例，當你用這些架構將它們整合在一起時，這就是你獲勝的原因。這就是為什麼你會看到一個數位化的以色列，由於我們在那裡共同的努力，我們的業務年復一年地以百分之十幾的速度成長。

Thanks, Ehud. Next question?

謝謝，埃胡德。下一個問題？

Tal Liani, B of A Merrill Lynch.

塔爾·利阿尼（Tal Liani），美國銀行美林證券公司。

I have just one question left, which is, I'm still trying to understand, in your numbers, what's related to the last quarter, what's related to the next quarter? What I mean by that is, the quarter is definitely weak but I don't know if it's incrementally weaker than last quarter, and what are the parts that are incrementally better?

我只剩下一個問題，那就是，我仍然試圖了解，在您的數字中，哪些與上一季相關，哪些與下一季相關？我的意思是，這個季度肯定很疲軟，但我不知道它是否比上一季減弱，哪些部分有所改善？

So maybe you can just go through the major segments, just to tell us where did you see improvement from the previous time that you updated us about three months ago? And just overall the delta from the last time? Thanks.

因此，也許您可以只介紹主要部分，然後告訴我們，與三個月前您上次更新相比，您看到了哪些改進？整體來說與上次相比有什麼變化嗎？謝謝。

Just repeating some of the same themes, and expanding on them, the quarter played out almost exactly as we expected, in terms of the three areas that were challenged. And in those challenging areas, from a revenue perspective, using high-end routing switches as an example, they were down in double digits, yet bookings were down in the minus 5% and minus 6% respectively.

只是重複一些相同的主題並加以擴展，就面臨挑戰的三個領域而言，本季的表現幾乎與我們預期的完全一樣。而在這些充滿挑戰的領域，從收入角度來看，以高階路由交換器為例，其收入下降了兩位數，但預訂量分別下降了-5%和-6%。

The emerging countries were better this quarter than last quarter, but way too early to call a trend and I don't want anyone to take away, we're basing our estimate on this next quarter with no improvement in terms of the current economic scenarios. Or what we're seeing with inconsistencies in emerging countries, in terms of the direction.

新興國家本季的表現好於上一季度，但目前還不能斷定趨勢，我們也不希望任何人因此而誤判，我們是根據下個季度的情況做出估計的，但目前的經濟形勢並沒有任何改善。或者就方向而言，我們看到新興國家存在不一致的情況。

The product orders were down 4% in the direction, and as we alluded to earlier, there were several of the areas that we felt very, very good about in terms of security and the data center progress that we made. Recurring revenue, that's about 1% delta that we would have had if we had recognized this in traditional ways, in ways that just increased from last quarter to this quarter.

產品訂單下降了 4%，正如我們之前提到的，在安全性和資料中心進展方面，我們感覺非常非常好。經常性收入，如果我們以傳統方式確認的話，大約會有 1% 的增量，從上個季度到本季度，這一數字一直在增加。

So I feel very good about where we are now. I think the transitions are working. We're playing it out.

所以我對我們目前的狀況感到非常滿意。我認為這些轉變正在發揮作用。我們正在演繹這件事。

We gave guidance for this next quarter, last quarter was 8% to 10%. We said this quarter is 6% to 8%, and you're going to see us move this market right along through the transitions and returned to positive growth one quarter at a time.

我們對下一季給出了預測，上一季的成長速度是 8% 到 10%。我們說過本季的成長速度是 6% 到 8%，你會看到我們推動這個市場順利度過轉型期，並一個季度一個季度地恢復正成長。

So I feel a lot better where we are now versus where we were a quarter ago. I don't know if you I don't know if you want to add anything to that, Frank.

因此，與一個季度前相比，我覺得我們現在的狀況好多了。我不知道你是否想對此進行補充，弗蘭克。

Great. Thanks, Tal. Next question?

偉大的。謝謝，塔爾。下一個問題？

Brian White, Cantor Fitzgerald.

布萊恩懷特、康托費茲傑拉。

I'm curious, sales down 8% this quarter. 6% to 8% in the third quarter. To get growth moving again, here, do you feel like Cisco needs a new product category?

我很好奇，本季銷售額下降了 8%。第三季為6%至8%。為了再次成長，您是否認為思科需要一個新的產品類別？

You're obviously a leader in networking, you have done very well in servers in a short period of time. But to get the revenue growth to more reasonable levels, do you think Cisco needs a new product category?

您顯然是網路領域的領導者，在短時間內在伺服器領域取得了非常出色的成績。但是為了讓營收成長達到更合理的水平，您認為思科是否需要一個新的產品類別？

Let me think about that for just a second, and collect my thoughts. I think we've got four or five major product categories, using your words, in play, at the present time.

讓我想一想，整理一下思緒。我認為，用您的話來說，目前我們已經有四到五個主要產品類別。

We have the explosion, and remember when we entered the data center, of saying, we're going to bring together the network with server technology, with storage, which has really been a huge part of our growth, and positioned us very well in the data center from the CIO's perspective as well, and that's playing out extremely well. We talked about the application-centric infrastructure.

我們經歷了爆炸式增長，記得當我們進入資料中心時，我們說過，我們將把網路與伺服器技術、儲存結合起來，這確實是我們成長的重要組成部分，從首席資訊長的角度來看，我們在資料中心也處於非常有利的地位，而且這一進展非常順利。我們討論了以應用程式為中心的基礎設施。

Remember just four months ago, when everybody really got what we're doing with this, and how you can have intelligence throughout the high -- your entire network and what we're doing with both applications, and the network, and the infrastructure, and the ability to do northbound and southbound APIs. That is a huge product category for us in terms of direction.

記得就在四個月前，每個人都真正了解了我們在做什麼，以及如何在整個網路中實現智能，以及我們在應用程式、網路、基礎設施以及執行北向和南向 API 的能力方面所做的工作。從方向來看，這對我們來說是一個巨大的產品類別。

Then as you pull together the Internet of Everything, and we've been on this for six years, heavy lifting, a year ago, I'd have to buy somebody a drink for me to talk very long about the topic. Now, they're often offering to buy us dinner, and they bring their Board of Directors here. A light switch went off in a very, very positive way, with the CES and the World Economic Forum, and when Google bought NES, it was a light switch that all of a sudden, every consumer player manufacturer realized.

然後，當你把萬物互聯整合在一起時，我們已經在這個領域工作了六年，做出了巨大的努力，一年前，我不得不請別人喝一杯，才能就這個話題進行長時間的討論。現在，他們常常請我們吃飯，而且還會帶董事會成員來這裡。CES 和世界經濟論壇帶來了非常積極的影響，而當Google收購 NES 時，所有消費性播放器製造商都突然意識到了這一點。

Now, the size of those markets is $19 trillion. That's a profit potential. That doesn't count all of the infrastructure underneath of it.

現在，這些市場的規模為 19 兆美元。這是一個獲利潛力。這還不包括其下面的所有基礎設施。

$1.5 trillion in retail alone, $2.9 trillion in terms of manufacturing. So you can imagine the conversations that we're having with the leaders in this, and we don't go in there selling them routers and switches.

光是零售業就達到 1.5 兆美元，製造業達到 2.9 兆美元。所以你可以想像我們與該領域領導者的對話，我們不會向他們出售路由器和交換器。

We sell them outcomes and there's probably no better example of an outcome sale, than what we did in Israel. The challenge from the top government leaders in Israel 18 months ago focused on job creation, focused on inclusion of minorities, focused on healthcare, education, innovation, the ability to move of the cities to the south, security, and to do this in terms of support with all three major political parties from the top down.

我們向他們出售成果，也許沒有比我們在以色列所做的更好的成果銷售例子了。18 個月前，以色列政府高層領導人面臨的挑戰集中在創造就業機會、少數族裔融入、醫療保健、教育、創新、城市向南遷移的能力、安全，以及從上到下爭取三大政黨的支持。

And we did that together in 18 months. And we've won every single major bit in toto on that. So you really begin to think about the key takeaway here is the network is at the center of every transition you're seeing, every one of it.

我們一起花了 18 個月的時間完成了這件事。在這方面，我們已經贏得了每一個重大勝利。因此，您真正開始思考這裡的關鍵點是網路是您所看到的每一個轉變的中心。

And it's going to be an Intelligent Network and we've positioned ourselves very well to both handle the new competitors coming at us piecemeal and the old peers who candidly, have also stayed piecemeal, and if you're just a piecemeal hardware player with a single product you're going to really have a tough time as you go forward. I believe architectures win, and I believe the categories we outlined, if we execute well, will fuel Cisco's growth for the next decade. So I actually think we have plenty in terms of the opportunities in front of us and I want to be careful with how we are prioritizing right way.

這將是智慧網絡，我們已經做好了充分的準備，既可以應對逐漸湧入的新競爭對手，也可以應對坦率地說一直保持零散狀態的老對手，如果你只是一個擁有單一產品的零散硬件玩家，那麼在未來的發展中你將會面臨艱難的時期。我相信架構會贏，而且我相信，如果執行得當，我們所概述的類別將推動思科未來十年的成長。因此，我實際上認為我們面前有很多機會，我希望謹慎地確定我們的優先順序。

I think that's the last question?

我想這是最後一個問題？

Mel, you're the boss. Go ahead.

梅爾，你是老闆。前進。

I think that's going to conclude our call. Cisco's next quarterly call, which will reflect our FY14 third-quarter results will be on Wednesday May 14, 2014 at 1:30 PM Pacific, 4:30 PM Eastern.

我想我們的通話就到此結束了。思科的下一次季度電話會議將於 2014 年 5 月 14 日星期三太平洋時間下午 1:30、東部時間下午 4:30 舉行，屆時將公佈我們 2014 財年第三季的業績。

Again I'd like to remind you that in light of Reg FD, Cisco plans to retain its long-standing policy to not comment on its financial guidance during the quarter, unless it's done through an explicit public disclosure. Please call the Investor Relations department with any follow-up questions from this call.

我想再次提醒您，根據《公平披露規則》，思科計劃保留其長期以來的政策，即不對該季度的財務指引發表評論，除非透過明確的公開披露進行評論。如本次通話有任何後續問題，請致電投資者關係部門。

Thank you for your participation and continued support. This concludes our call.

感謝您的參與和持續的支持。我們的通話到此結束。

Thank you for participating on today's conference call. If you would like to listen to the call in its entirety, you may call 866-513-1228. For participants dialing from outside the US, please dial 203-369-1971. You may disconnect at this time.

感謝您參加今天的電話會議。如果您想完整收聽電話會議，請撥打 866-513-1228。對於從美國境外撥打電話的參與者，請撥打 203-369-1971。您現在可以斷開連線。