思科 (CSCO) 2016 Q4 法說會逐字稿

Welcome to Cisco Systems' fourth-quarter and FY16 financial results conference call. At the request of Cisco Systems, today's call is being recorded. If you have any objections, you may disconnect. Now I would like to introduce Marilyn Mora, Head of Investor Relations. Ma'am, you may begin.

歡迎參加思科系統公司第四季和 2016 財政年度財務業績電話會議。應思科系統公司的要求，今天的通話正在錄音。如果有異議可以斷開連接。現在我想介紹投資者關係主管瑪麗蓮莫拉 (Marilyn Mora)。女士，您可以開始了。

Thanks, Sam. Welcome, everyone, to Cisco's fourth-quarter FY16 quarterly earnings conference call.

謝謝，山姆。歡迎大家參加思科 2016 財年第四季季度財報電話會議。

This is Marilyn Mora, Head of Investor Relations; and I'm joined by Chuck Robbins, our CEO; and Kelly Kramer, our CFO. By now you should have seen our earnings press release. A corresponding webcast with slides including supplemental information will be available on our website in the Investor Relations section following the call.

我是投資人關係主管瑪麗蓮‧莫拉 (Marilyn Mora)；和我一起出席的還有我們的執行長查克‧羅賓斯 (Chuck Robbins)；以及我們的財務長凱莉‧克萊默 (Kelly Kramer)。現在您應該已經看到我們的收益新聞稿了。電話會議結束後，我們的網站上的「投資者關係」部分將提供相應的網路廣播和包含補充資訊的幻燈片。

Income statements, full GAAP to non-GAAP reconciliation information, balance sheet, cash flow statements and other financial information can also be found on the financial information section of our Investor Relations website. Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results, and will discuss product results in terms of revenue, and geographic and customer results in terms of product orders, unless stated otherwise. All comparisons throughout this call will be on a year-over-year basis, unless stated otherwise.

損益表、完整的 GAAP 與非 GAAP 調節資訊、資產負債表、現金流量表和其他財務資訊也可以在我們的投資者關係網站的財務資訊部分找到。在整個電話會議過程中，我們將參考 GAAP 和非 GAAP 財務結果，並將討論收入方面的產品結果以及產品訂單方面的地理和客戶結果，除非另有說明。除非另有說明，本次電話會議中的所有比較均以同比為基礎。

The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the first quarter of FY17. They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

我們今天將要討論的事項包括前瞻性陳述，包括我們將為 2017 財年第一季提供的指導。它們受到我們在提交給美國證券交易委員會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 表格報告，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。

With respect to guidance, please also see the slides and press release that accompany this call, for further details. As a reminder, Cisco will not comment on its financial guidance during the quarter, unless it is done through an explicit public disclosure. As a reminder, in Q2, on November 20, we completed the sale of the customer premises equipment portion of our SP Video Connected Devices business, and accordingly, had no revenue or expense from that business in Q4 FY16.

關於指導，請參閱本次電話會議附帶的幻燈片和新聞稿，以了解更多詳細資訊。提醒一下，思科不會對本季的財務指導發表評論，除非透過明確的公開揭露。提醒一下，在第二季度，即 11 月 20 日，我們完成了 SP 視訊連接設備業務的客戶端設備部分的出售，因此，2016 財年第四季度該業務沒有收入或支出。

As such, all of the revenue, non-GAAP, product orders and backlog information we will be discussing, is normalized to exclude the SP Video CPE business from our historical results. We have provided historical financial information for the SP Video CPE business in the slides that accompany this call and on our website to help to understand these impacts. As a reminder, the guidance we provided during our Q3 earnings call and today's call has been normalized in the same way.

因此，我們將討論的所有收入、非 GAAP、產品訂單和積壓資訊均已標準化，以將 SP Video CPE 業務排除在我們的歷史結果之外。我們在本次電話會議附帶的幻燈片和我們的網站上提供了 SP Video CPE 業務的歷史財務信息，以幫助理解這些影響。提醒一下，我們在第三季財報電話會議和今天的電話會議上提供的指導已經以相同的方式標準化。

So with that, I'll go ahead and turn it over to Chuck.

因此，我將把發言權交給查克。

Thank you, Marilyn. We executed extremely well in Q4, with revenue growth of 2% and record non-GAAP EPS, which grew 9%. This was another strong quarter, wrapping up a great year. We closed out our fiscal year with $48.7 billion in revenue, up 3%, and non-GAAP EPS, which grew 8% to a record $2.36. Gross margins and operating margins were consistently strong throughout the year. We continue to manage our business well, and these results underscore our ability to execute against our strategic priorities and our rigorous discipline on profitability.

謝謝你，瑪麗蓮。我們在第四季的表現非常出色，營收成長了 2%，非 GAAP 每股盈餘創下了 9% 的成長記錄。這是另一個表現強勁的季度，為輝煌的一年畫上了圓滿的句號。我們以 487 億美元的營收結束了本財年，成長了 3%，非 GAAP 每股盈餘成長了 8%，達到創紀錄的 2.36 美元。全年毛利率和營業利益率持續強勁。我們繼續良好地管理我們的業務，這些結果凸顯了我們執行策略重點的能力以及我們對獲利能力的嚴格紀​​律。

Over this past fiscal year, we experienced a challenging environment with significant volatility. Our fourth quarter was no exception. After three consecutive quarters of growth, both Service Provider and Emerging Markets turned negative. Service Provider orders declined 5%, reflecting the many challenges in that customer segment that you've heard from our peers.

在過去的財政年度，我們經歷了充滿挑戰且波動很大的環境。我們的第四季也不例外。在連續三個季度成長之後，服務提供者和新興市場均出現負成長。服務提供者訂單下降了 5%，反映出您從我們的同行那裡聽到的該客戶群面臨的諸多挑戰。

In addition, Emerging Markets orders were down 6%. The remainder of the business remained healthy, with orders growing 5%. While the overall macro environment remains uncertain, we are well-positioned to capture the benefits of any tailwinds.

此外，新興市場訂單下降了6%。其餘業務維持健康，訂單成長5%。儘管整體宏觀環境仍然不確定，但我們已做好準備，抓住任何有利因素的好處。

At the same time, we're aggressively investing in priority areas to drive growth over the long term, regardless of the environment. We had strong performance in Security, Data Center, Switching, Collaboration and Services, as well as continued success in the transition of our business model to software and subscriptions. We remained focused on accelerating innovation across our portfolio, and we've made great progress over the past year in these priority areas, where we continue to see momentum.

同時，無論環境如何，我們都在積極投資重點領域，以推動長期成長。我們在安全、資料中心、交換、協作和服務方面表現強勁，並且在將業務模式轉型為軟體和訂閱方面也取得了持續的成功。我們始終致力於加速整個產品組合的創新，過去一年我們在這些優先領域取得了巨大進展，並且繼續保持良好的發展勢頭。

First, security. Security is the number-one priority for every customer. As the global leader in networking, Cisco is uniquely positioned to deliver security at scale with leading-edge innovation, as we lead the transition to cloud-delivered security. Our team has done a phenomenal job of capitalizing on this distinct advantage that Cisco has in the most critical area for our customers.

第一，安全。安全是每個客戶的首要任務。身為網路領域的全球領導者，思科擁有獨特的優勢，能夠透過領先的創新提供大規模安全保障，引領雲端交付安全的轉型。我們的團隊出色地利用了思科在對客戶最關鍵的領域所擁有的獨特優勢。

For example, we've been rapidly shifting our model from a primarily hardware business to a software and services business. This past quarter, we delivered our third-consecutive quarter of double-digit growth, with revenue up 16% and deferred revenue growing 29% as a result of this shift.

例如，我們正在迅速將業務模式從以硬體為主轉變為以軟體和服務為主。上個季度，我們連續第三個季度達到兩位數成長，由於這一轉變，營收成長了 16%，遞延營收成長了 29%。

We continue to add significant features and functionality to our security portfolio, both through internal innovation and M&A, to meet our customers' most pressing needs. Such as cloud Defense Orchestrator, which provides cloud-based security policy management. Stealthwatch Learning Networks, which leverages a network infrastructure, analytics and distributed machine learning to provide visibility and security intelligence across the enterprise.

我們透過內部創新和併購不斷為我們的安全產品組合添加重要的功能和功能，以滿足客戶最迫切的需求。例如雲端 Defense Orchestrator，它提供基於雲端的安全性策略管理。 Stealthwatch 學習網路利用網路基礎設施、分析和分散式機器學習為整個企業提供視覺性和安全情報。

We have also extended our cloud-based security platform through our acquisition of CloudLock, an as-a-service offering enabling the ability to secure cloud applications. Over the past year, we've demonstrated tremendous success in rapidly deploying Cisco's advanced threat solutions to our global customer base with our AMP solution, now deployed at over 17,000 customers around the world.

我們也透過收購 CloudLock 擴展了我們的基於雲端的安全平台，CloudLock 是一種即服務產品，能夠保護雲端應用程式的安全。在過去的一年裡，我們透過 AMP 解決方案向我們的全球客戶群快速部署思科的高階威脅解決方案，並取得了巨大的成功，目前該解決方案已在全球超過 17,000 個客戶中部署。

As we have done in the advanced threat market, we are now deeply focused on winning in the next-generation firewall market. We launched our full-featured next-generation firewall in March, and we added over 6,000 customers this past quarter.

正如我們在高階威脅市場所做的那樣，我們現在高度重視在下一代防火牆市場中獲勝。我們於三月推出了功能齊全的新一代防火牆，上個季度增加了 6,000 多名客戶。

Second, next-generation data center. Over the past year, we have continued to invest heavily in our data center portfolio, building upon our core networking foundation as customers look to Cisco for an open, programmable and automated infrastructure that accelerates application deployments and provides network services in an agile way.

第二，下一代資料中心。在過去的一年裡，我們繼續大力投資我們的資料中心產品組合，在我們的核心網路基礎之上進行構建，因為客戶希望思科能夠提供開放、可編程和自動化的基礎設施，以加速應用程式部署並以敏捷的方式提供網路服務。

We are delivering technologies across physical, virtual and cloud-based deployments. In Q4, we launched our Tetration Analytics platform, providing complete visibility across the data center. Combining Tetration with Cisco Cloud Center, we can automate and orchestrate data center application workloads real-time between hybrid and private clouds, while enabling policy management with ACI. Our ACI family of products continued to see strong revenue growth in Q4, growing 36% at over a $2.3 billion annualized run rate.

我們正在透過實體、虛擬和基於雲端的部署提供技術。在第四季度，我們推出了 Tetration Analytics 平台，為整個資料中心提供完整的可視性。將 Tetration 與 Cisco Cloud Center 結合，我們可以在混合雲和私有雲之間即時自動化和協調資料中心應用程式工作負載，同時使用 ACI 實現策略管理。我們的 ACI 系列產品在第四季持續保持強勁的營收成長，成長率為 36%，年化運作率超過 23 億美元。

In addition, this past quarter marked our first full quarter with HyperFlex, our hyper-converged solution, and we already have approximately 500 customers, and over a quarter of these are net new to UCS. We're off to a great start, with a solid pipeline and strong customer feedback.

此外，上個季度是我們推出超融合解決方案 HyperFlex 的第一個完整季度，我們已經擁有約 500 個客戶，其中超過四分之一是 UCS 的新客戶。我們已經有了一個良好的開端，擁有穩固的管道和強大的客戶回饋。

Third, collaboration. This continues to be a consistent growth driver for us. Our strategy and highly differentiated portfolio, delivered both on-premise and from the cloud, enabled us in FY16 to grow revenue 9% to $4.4 billion. In Q4, we delivered another consecutive quarter of solid growth, with revenue growing 6%, and deferred revenue growing at 13%.

第三，協作。這將繼續成為我們持續成長的動力。我們的策略和高度差異化的產品組合（包括本地和雲端交付）使我們在 2016 財年的營收成長了 9%，達到 44 億美元。第四季度，我們連續一個季度穩健成長，營收成長 6%，遞延營收成長 13%。

Lastly, we continue to see great progress in our transition to software- and subscription-based models. I've mentioned the success we've had in this area in both security and collaboration, and overall, our product-deferred revenue related to our recurring software and subscription businesses grew 33% in Q4. Our momentum here is strong, and we'll continue to accelerate this transition.

最後，我們在向基於軟體和訂閱的模式轉型的過程中繼續取得巨大進展。我曾提到我們在安全和協作領域的成功，總體而言，我們與經常性軟體和訂閱業務相關的產品遞延收入在第四季度增長了 33%。我們的勢頭強勁，我們將繼續加速這一轉變。

Today's market requires Cisco and our customers to be decisive, move with greater speed, and drive more innovation than we've seen in our history. Today we announced a restructuring, enabling us to optimize our cost base and lower growth areas of our portfolio, and further invest in key priority areas, such as security, IoT, collaboration, next-generation data center, and cloud. We expect to reinvest substantially all of the cost savings from these actions back into the businesses, and we'll continue to aggressively invest to focus on our areas of future growth.

當今的市場要求思科和我們的客戶果斷行動，以更快的速度行動，並推動比我們歷史上更多的創新。今天，我們宣布了一項重組，使我們能夠優化成本基礎和投資組合中成長較低的領域，並進一步投資於安全、物聯網、協作、下一代資料中心和雲端等關鍵優先領域。我們希望將這些行動節省下來的成本基本上全部重新投資到業務中，我們將繼續積極投資，專注於未來的成長領域。

Now I'll turn it over to Kelly to walk you through more detail on our financials.

現在我將讓凱利 (Kelly) 向您詳細介紹我們的財務狀況。

Thanks, Chuck. We executed well on our financial strategy of delivering profitable growth, managing our portfolio and strategic investments, and delivering shareholder value. First, on delivering profitable growth.

謝謝，查克。我們出色地執行了我們的財務策略，實現了獲利成長、管理了我們的投資組合和策略投資，並實現了股東價值。第一，實現獲利性成長。

We had another good quarter, with revenue growing 2% and non-GAAP EPS growing 9%. For the full fiscal year, we grew revenue 3%, and non-GAAP EPS 8%. For the quarter and full year, we expanded both our gross and operating margins. For the full fiscal year, total revenue was $48.7 billion, with product up 2% and services up 5%.

我們又度過了一個好的季度，營收成長了 2%，非 GAAP 每股盈餘成長了 9%。整個財年，我們的收入成長了 3%，非公認會計準則每股收益成長了 8%。本季和全年，我們的毛利率和營業利潤率均有所提高。整個財年總收入為 487 億美元，其中產品成長 2%，服務成長 5%。

Let me now walk through the details for Q4. Total revenue was $12.6 billion, up 2%, with growth in product revenue of 1% and services of 5%. Switching grew 2%, driven by strength in data center switching, with continued momentum in ACI and the next-generation data center. Routing declined 6%, largely driven by the weakness we saw in Service Provider.

現在讓我介紹一下第四季的細節。總收入為 126 億美元，成長 2%，其中產品收入成長 1%，服務收入成長 5%。受資料中心交換業務強勁成長的推動，交換業務成長了 2%，ACI 和下一代資料中心的勢頭持續增強。路由業務下降了 6%，這主要是由於服務提供者業務的疲軟所致。

Collaboration grew 6%, driven by continued strength of our TelePresence portfolio, which grew in the double digits, and continued solid performance of WebEx. Deferred revenue grew 13%. Data center declined 1%.

協作業務成長了 6%，這得益於我們的 TelePresence 產品組合的持續強勁成長（實現了兩位數成長）以及 WebEx 的持續穩健表現。遞延收入成長13%。數據中心下降了1%。

Our hyper-converged offering, HyperFlex, is experiencing solid early uptake by our customers, led by its highly differentiated architecture. Wireless grew 5%, led by growth in cloud-based Meraki, partially offset by a decline in controllers.

我們的超融合產品 HyperFlex 因其高度差異化的架構而受到客戶的早期青睞。無線業務成長了 5%，主要得益於基於雲端的 Meraki 業務的成長，但控制器業務的下滑部分抵消了這一成長。

Security grew 16%, with deferred revenue growth of 29%. We had strong performance in our advanced threat security and web security solutions, which grew over 80% and 50%, respectively. SP Video declined 12%, driven by the weakness we saw in China this quarter. Services grew 5%, driven by our focus on renewals and attach.

安全業務成長 16%，遞延收入成長 29%。我們的進階威脅安全和網路安全解決方案表現強勁，分別成長超過 80% 和 50%。由於本季度中國市場表現疲軟，SP Video 下滑了 12%。服務業成長了 5%，這得益於我們對續約和附件的關注。

We continue to make solid progress in our goal of driving more recurring revenue. Total deferred revenue grew 8%, with product up 8% and services up 9%. And as Chuck mentioned, the portion of our deferred product revenue related to our recurring software and subscription businesses, grew 33%. From an orders perspective, total product orders grew 1%, with our book-to-bill comfortably above 1.

我們在實現更多經常性收入的目標上繼續取得堅實進展。總遞延收入成長 8%，其中產品成長 8%，服務成長 9%。正如查克所提到的，與我們的經常性軟體和訂閱業務相關的遞延產品收入部分成長了 33%。從訂單角度來看，產品訂單總量增加了 1%，訂單出貨比輕鬆超過 1。

Looking at our geographies, which is the primary way we run the business, Americas grew 3%, EMEA was down 3% and APJC grew 4%. Total Emerging Markets declined 6%, with the BRICs plus Mexico down 2%. India was up 20%, while we saw declines in China of 12%.

從我們的地理位置來看，這是我們經營業務的主要方式，美洲成長了 3%，歐洲、中東和非洲地區下降了 3%，亞太及日本地區成長了 4%。新興市場整體下跌 6%，其中金磚四國加上墨西哥下跌 2%。印度上漲了 20%，而中國則下降了 12%。

In terms of customer segments, it was good to see a return to growth in enterprise of 3%, as well as a solid performance in commercial of 5%. Public sector grew 1%, and Service Provider was down 5%. Our product backlog as we ended Q4 was approximately $4.6 billion, up 1%.

從客戶細分來看，企業客戶恢復了 3% 的成長，商業客戶也表現穩健，達到了 5%。公共部門成長了 1%，服務提供者下降了 5%。截至第四季末，我們的產品積壓訂單約為 46 億美元，成長 1%。

We drove strong profitability with expanding leverage in Q4. From a non-GAAP perspective, total gross margin was 64.6%, growing 0.7 points, with product gross margin of 63.9%, up 0.7 points, and service gross margin of 67%, up 1.1 points. We increased our non-GAAP operating margin to 31.4%, up 1.3 points.

我們在第四季度透過擴大槓桿實現了強勁的獲利能力。從非美國通用會計準則 (Non-GAAP) 來看，總毛利率為 64.6%，成長 0.7 個百分點，其中產品毛利率為 63.9%，成長 0.7 個百分點，服務毛利率為 67%，成長 1.1 個百分點。我們的非公認會計準則營業利潤率提高至 31.4%，上升 1.3 個百分點。

We also saw good momentum and improvement in the profitability for the full fiscal year. On a non-GAAP basis, our total gross margin for the year was 64.7%, an increase of 50 basis points, with increases in both product gross margin and service gross margin, up 0.3 points and 1.4 points, respectively. Our non-GAAP operating margin expanded to 31%, up 1.4 points.

我們也看到整個財年的獲利能力呈現良好動能和改善。以非美國通用會計準則計算，我們全年總毛利率為64.7%，成長50個基點，其中產品毛利率和服務毛利率均成長，分別成長0.3個百分點及1.4個百分點。我們的非公認會計準則營業利潤率擴大至 31%，上升 1.4 個百分點。

We remain disciplined, and focused on continuing to drive operational efficiencies and productivity. In terms of our bottom line, we delivered non-GAAP EPS of $0.63, up 9%. GAAP EPS was $0.56. For the full year, we had record non-GAAP EPS of $2.36, up 8%, while GAAP EPS was $2.11.

我們保持紀律，並專注於持續提高營運效率和生產力。就我們的底線而言，我們的非 GAAP 每股收益為 0.63 美元，成長 9%。 GAAP EPS 為 0.56 美元。全年來看，我們的非 GAAP 每股盈餘達到創紀錄的 2.36 美元，成長 8%，而 GAAP 每股盈餘為 2.11 美元。

Moving to our portfolio and strategic investments, in Q4, we announced our intent to acquire CloudLock, which has since closed, early Q1. The CloudLock acquisition will further enhance Cisco's security portfolio and build on our Security Everywhere strategy, designed to provide protection from the cloud to the network to the end point, and also aligns with our strategy to deliver more cloud-based subscription services. We continued our strategy of investing in key growth areas including security, but also cloud collaboration and IoT, and we are committed to looking at the right acquisitions at the right price, to drive our growth strategy.

談到我們的投資組合和策略投資，在第四季度，我們宣布了收購 CloudLock 的意向，該公司已於第一季初關閉。收購 CloudLock 將進一步增強思科的安全產品組合，並建立在我們的「無所不在的安全」策略之上，該策略旨在提供從雲端到網路再到終端的保護，同時也符合我們提供更多基於雲端的訂閱服務的策略。我們持續執行投資關鍵成長領域的策略，包括安全、雲端協作和物聯網，並致力於以合適的價格尋找合適的收購，以推動我們的成長策略。

Moving on to shareholder value, in Q4, we delivered operating cash flows of $3.8 billion. Total cash, cash equivalents and investments at the end of Q4 were $65.8 billion, with $5.9 billion available in the US. We returned $2.1 billion to shareholders during the quarter. That included $800 million of share repurchases and $1.3 billion for our quarterly dividend.

談到股東價值，第四季度，我們的經營現金流達到 38 億美元。第四季末的現金、現金等價物和投資總額為 658 億美元，其中美國有 59 億美元。本季我們向股東返還了 21 億美元。其中包括 8 億美元的股票回購和 13 億美元的季度股利。

For the full fiscal year, operating cash flow grew 8% to a record $13.6 billion, with free cash flow of $12.4 billion. We returned $8.7 billion to shareholders through share buybacks and dividends, which represented 70% of our total free cash flow. We are firmly committed to continuing our capital allocation strategy of returning a minimum of 50% of our free cash flow to shareholders annually.

整個財年，經營現金流成長 8%，達到創紀錄的 136 億美元，自由現金流為 124 億美元。我們透過股票回購和股利向股東返還了 87 億美元，占我們總自由現金流的 70%。我們堅定地致力於延續我們的資本配置策略，每年向股東返還至少 50% 的自由現金流。

To summarize, in Q4 and for the full fiscal year, we executed well, despite a volatile environment. We focused on consistent, solid execution, driving profitable growth, cash generation and operating leverage. We're making the tough decisions and key investments to drive strong financial performance over the long term, and continuing our firm commitment to delivering shareholder value.

總而言之，儘管環境動盪，但在第四季和整個財年，我們的表現仍然良好。我們專注於持續、穩健的執行，推動獲利成長、現金創造和經營槓桿。我們正在做出艱難的決定和關鍵投資，以推動長期強勁的財務業績，並繼續堅定地致力於實現股東價值。

Let me now reiterate the guidance we provided in the press release for the first quarter of FY17. This guidance includes the type of forward-looking information that Marilyn referred to earlier. The guidance for the first quarter of FY17 is as follows. We expect our revenue growth to be in the range of minus 1% to plus 1% year over year, normalized to exclude the SP Video CPE business from Q1 FY16.

現在，讓我重申我們在 2017 財年第一季新聞稿中提供的指導。本指南包含瑪麗蓮之前提到的前瞻性資訊類型。 2017財年第一季的指引如下。我們預計，如果排除 2016 財年第一季的 SP 視訊 CPE 業務，我們的營收成長率將在年比負 1% 到正 1% 之間。

We anticipate the non-GAAP gross margin rate to be in the range of 63% to 64%. The non-GAAP operating margin rate is expected to be in the range of 29% to 30%. And the non-GAAP tax provision rate is expected to be 22%. Non-GAAP earnings per share is expected to range from $0.58 to $0.60.

我們預計非公認會計準則毛利率將在 63% 至 64% 之間。非公認會計準則營業利潤率預計在29%至30%之間。非公認會計準則稅務撥備率預計為22%。非公認會計準則每股收益預計在 0.58 美元至 0.60 美元之間。

The restructuring action Chuck discussed earlier will impact up to 5,500 employees, representing approximately 7% of our global workforce. We will take these actions starting in Q1 of FY17, and estimate that we will recognize pretax charges to our GAAP financial results up to $700 million. We expect that approximately $325 million to $400 million of these charges will be recognized during the first quarter of FY17, with the remaining amount recognized during the rest of the fiscal year.

查克先前討論的重整行動將影響多達 5,500 名員工，約占我們全球員工總數的 7%。我們將從 2017 財年第一季開始採取這些行動，並估計我們將在我們的 GAAP 財務表現中確認高達 7 億美元的稅前費用。我們預計其中約 3.25 億至 4 億美元將在 2017 財年第一季確認，剩餘金額將在本財年剩餘時間內確認。

I'll now turn it back to Chuck to summarize the call.

現在我把電話轉回給查克來總結這通通話。

Thanks, Kelly. To wrap up, I want to summarize our priorities as we head into the year ahead, and why I'm confident about our opportunities. First, we expect to continue to execute against our strategic priorities, and drive profitability regardless of the market conditions. We are committed to making the necessary decisions to drive our future growth and that of our customers and our partners.

謝謝，凱利。最後，我想總結我們明年的優先事項，以及我對我們的機會充滿信心的原因。首先，我們希望繼續執行我們的策略重點，無論市場狀況如何都能提高獲利能力。我們致力於做出必要的決策來推動我們以及我們的客戶和合作夥伴的未來成長。

Second, we believe we will transition more of our revenues to a software- and subscription-based model, and accelerate our shift across our portfolio. Third, we remain committed to increasing our pace of innovation that will help our customers succeed. Lastly, we will continue to execute on our of long-term strategy to create even greater value for our customers and shareholders, while positioning Cisco for long-term success.

其次，我們相信我們將把更多的收入轉向基於軟體和訂閱的模式，並加速我們整個產品組合的轉變。第三，我們將繼續致力於加快創新步伐，幫助我們的客戶取得成功。最後，我們將繼續執行我們的長期策略，為我們的客戶和股東創造更大的價值，同時為思科的長期成功做好準備。

Marilyn, I'll turn it back over to you for questions.

瑪麗蓮，我會把這個問題交還給你，讓你回答問題。

Thanks, Chuck. Sam, let's go ahead and open the line for questions. And while Sam is doing that, I would like to remind the audience that we ask you to please ask one question.

謝謝，查克。山姆，我們開始提問吧。當山姆這樣做的時候，我想提醒觀眾，我們請你們問一個問題。

Thank you. And our first question comes from the line of Vijay Bhagavath with Deutsche Bank Securities. Your line is now open.

謝謝。我們的第一個問題來自德意志銀行證券公司的 Vijay Bhagavath。您的線路現已開通。

Hi, thanks, Chuck. Kelly, Marilyn. My question is around demand trends. A lot of clients are asking me this since the press release came out. Help us with any color you can in terms of end markets, product categories, product cycles -- anything and everything on demand trends looking into the rest of the year? Thanks.

嗨，謝謝，查克。凱莉，瑪麗蓮。我的問題是關於需求趨勢。自從新聞稿發布以來，很多客戶都在問我這個問題。您能否協助我們了解終端市場、產品類別、產品週期等方面的情況，以及今年剩餘時間內需求趨勢的走向？謝謝。

Thanks, Vijay. So I'll provide some comments and ask Kelly for anything else that she'd like to add. So when you look at, in Q4, what we obviously saw was, after three quarters of growth in the Service Provider and emerging countries, we saw those turn negative, as I said. And the rest of the business was up 5%, from an orders perspective. We also highlighted the fact that enterprise was up 3%. A little more color on that is that every geography around the world experienced positive enterprise growth.

謝謝，維傑。因此，我會提供一些評論，並詢問凱莉她還想補充什麼。因此，當您查看第四季度時，我們明顯看到，服務提供者和新興國家在經歷了三個季度的成長之後，正如我所說，它們變成了負值。從訂單角度來看，其餘業務成長了 5%。我們也強調了企業成長了 3% 的事實。更詳細地說，世界各地的企業都經歷了積極的成長。

Commercial was up 5%. Every geography around the world experienced positive growth in commercial. And then in public sector, it was up 1% and I believe all except perhaps Europe were positive as well, in public sector. So outside of SP and emerging, we saw fairly consistent demand. And I think that pretty much summarizes it. Kelly, what other comments do you have?

商業上漲5%。世界各地的商業都經歷了積極的成長。然後在公共部門，它上漲了 1%，我相信除了歐洲以外，所有公共部門的漲幅也都是正面的。因此，除了 SP 和新興市場之外，我們看到了相當一致的需求。我認為這基本上概括了一切。凱利，您還有其他意見嗎？

No, I think you summarized it well.

不，我認為你總結得很好。

Okay, Sam. Let's go ahead and tee up for the next question, please?

好的，山姆。我們繼續準備下一個問題好嗎？

Thank you. Our next question is from Ittai Kidron with Oppenheimer. Your line is now open.

謝謝。我們的下一個問題來自奧本海默的 Ittai Kidron。您的線路現已開通。

Hi, guys. Thanks for the question. Couple things from me. And Chuck, this is the same question I asked last quarter. Your UCS, your data center business, has now been stuck in range for seven quarters in a row. And I understand that HyperFlex has seen some traction, but how do we get that business back to growth again? What is the time line by which you think that could happen? And will you consider going after parts of the market that are maybe more margin-sensitive?

嗨，大家好。謝謝你的提問。跟我講幾件事。查克，這個問題和我上季問的是一樣的。您的 UCS，即您的資料中心業務，現在已經連續七個季度停滯不前。我知道 HyperFlex 已經取得了一些進展，但我們該如何讓該業務恢復成長？您認為這種情況什麼時候會發生？您是否會考慮進軍那些對利潤較敏感的市場部分？

And then just another small question there. The Tetration solution you introduced, can you just remind us in what product category in the future that will be included, and maybe some color on first comments from customers?

還有一個小問題。您介紹的 Tetration 解決方案，能否提醒我們未來將包含在哪個產品類別中，並結合顧客的初步評價提供一些說明？

Absolutely, Ittai, thank you very much. So on the UCS front, we talked about a couple things. There's an overall sort of macro demand issue in that space. I think the overall blade market has been somewhat benign. But we've also had -- we've also experienced, as we talked about, a transition to rack, and our teams have been working on subsequent innovation across both the blade and the rack business, as well as the introduction of the HyperFlex system.

當然，Ittai，非常感謝。因此，在 UCS 方面，我們討論了幾件事。該領域存在總體宏觀需求問題。我認為整體刀片市場還是比較良性的。但正如我們所談到的，我們也經歷了向機架的過渡，我們的團隊一直致力於刀片和機架業務的後續創新，以及 HyperFlex 系統的推出。

So we have -- I believe the team has a real clear plan. They've got innovation priorities outlined across all of those platforms, and we'll be executing that over the next few quarters. Kelly and I actually reviewed this just a couple days ago. So I feel good about the leadership there. I feel good about their plan, and now it's about execution.

所以我們有——我相信團隊有一個真正明確的計劃。他們已經在所有這些平台上製定了創新重點，我們將在接下來的幾季內執行這些重點。事實上，凱利和我幾天前就對此進行了審查。所以我對那裡的領導階層感到滿意。我對他們的計劃很滿意，現在就是執行的時候了。

Kelly, any -- on the Tetration front, let me give you a little color, and then Kelly, you can talk about where we're going to report it. Tetration is -- we announced it in Q4. We're generally beginning orderability, I think, sometime around now. It is a combination of premise-based hardware with subscription software.

凱利，任何 - 在 Tetration 方面，讓我給你一點顏色看看，然後凱利，你可以談談我們要在哪裡報告它。 Tetration 是 - 我們在第四季度宣布了它。我認為，我們現在已經開始實現可訂購性了。它是基於前提的硬體與訂閱軟體的組合。

And so, we're just very much in the early days. We have taken a couple of orders from customers. I will tell you that the general feedback from our customers is that it solves a problem that they've had for a very long time, that nothing else has solved. So again, we've got that offer ready to go in a combination of premise-based and subscription-based solution, and it is just being turned off on an orderability perspective. Where will we report that?

所以，我們還處於早期階段。我們已接到一些客戶的訂單。我會告訴你，我們客戶的普遍回饋是，它解決了他們長期以來遇到的一個問題，而其他任何方法都無法解決。因此，我們再次準備好以基於前提和基於訂閱的解決方案的組合形式提供該服務，並且它只是從可訂購性角度關閉。我們要去哪裡報告此事？

Right now, since it is in the data center solution, it will be in data center switching. As we expand that portfolio across we can (inaudible).

現在，由於它處於資料中心解決方案中，因此它將處於資料中心交換中。隨著我們擴大該投資組合，我們可以（聽不清楚）。

We'll call it out.

我們會大聲喊出來。

Yes.

是的。

Thanks, Chuck and Kelly. Sam, we'll go ahead and take the next question, please.

謝謝，查克和凱利。山姆，我們繼續回答下一個問題。

Thank you. Our next question is from Simona Jankowski with Goldman Sachs & Company. Your line is now open.

謝謝。下一個問題來自高盛公司的 Simona Jankowski。您的線路現已開通。

Hi, thank you. I just had a clarification first, which is, what percent of the business right now is recurring software and subscription revenue? And then as far as my question, gross margins and operating margins were ahead of your target ranges, and that's in a quarter when gross margins are typically seasonally down. So just curious, Kelly and Chuck, about raising your target margin ranges over time? And just more broadly, how are you thinking about the tradeoff between margins and revenue growth?

你好，謝謝。我首先要澄清的是，目前業務中有多少百分比是經常性軟體和訂閱收入？就我的問題而言，毛利率和營業利潤率都超出了您的目標範圍，而這個季度的毛利率通常會因季節原因而下降。所以，凱利和查克，我只是好奇，隨著時間的推移，你們的目標保證金範圍是否會提高？更廣泛地說，您如何看待利潤率和收入成長之間的權衡？

Yes, so I'll start, and Chuck, you can jump in. But to your first question, the portion of our business that is recurring revenue is up to 28%, and that compares to 25% in Q4 of 2015. So we made really solid progress this year.

是的，我先開始，查克，你可以插嘴。但對於你的第一個問題，我們的業務中經常性收入的比例高達 28%，而 2015 年第四季這一比例為 25%。所以我們今年取得了非常紮實的進展。

In terms of the margins, this has been a huge focus for us all quarter long, and it is really great to see that we actually had our margins -- gross margins and operating margins -- up year over year for us this year. It's part of what we're driving in our shift to software. Those businesses have great margins, and it's part of the overall transition. In terms of, when do we change our model or our guidance, I think that will come over time as we make bigger shifts at the Company level. But that is our goal, as we shift to more software that have those nice, great margins.

就利潤率而言，這是我們整個季度關注的重點，我們很高興看到今年我們的利潤率（毛利率和營業利潤率）實際上同比增長。這是我們轉型為軟體的一部分。這些業務利潤豐厚，這是整體轉型的一部分。至於我們何時改變我們的模式或指導，我認為這將隨著時間的推移而發生，因為我們在公司層面做出了更大的轉變。但這就是我們的目標，因為我們將轉向更多具有良好、巨大利潤的軟體。

The only other comment I'd make is that when we look at our success relative to subscription and software businesses, we have the product-deferred revenue that's associated with software and subscriptions, that we said was up 33%. We also have another category of total contract value that we have not recognized revenue on yet that we will be billing customers on, on a monthly basis going forward.

我唯一想說的另一點是，當我們回顧我們在訂閱和軟體業務方面的成功時，我們發現與軟體和訂閱相關的產品遞延收入成長了 33%。我們還有另一類總合約價值，我們尚未確認收入，今後我們將按月向客戶收取費用。

We track both those numbers. The second one doesn't show up on our balance sheet yet. But if you look at those two combined, which is really reflective of our progress here, that number was actually up 43% over the same period a year ago, just to share one more data point there.

我們追蹤這兩個數字。第二個尚未出現在我們的資產負債表上。但如果將兩者結合起來來看，這確實反映了我們在這方面取得的進展，這個數字實際上比去年同期增長了 43％，這只是分享一個數據點。

Next question, please?

請問下一個問題？

And our next question comes from the line of Tal Liani with Banc of America Securities. Your line is now open.

我們的下一個問題來自美國銀行證券公司的 Tal Liani。您的線路現已開通。

Hi, guys. My questions are about the restructuring program. Two things. First, are you -- you say that you're doing it in order to increase investments in growth areas versus areas that are not growing. Are you anticipating further declining growth rates, or any issues beyond what we're seeing now in the legacy areas, that prompt this kind of program?

嗨，大家好。我的問題是關於重組計劃的。兩件事。首先，您說您這樣做是為了增加對成長領域的投資，而不是對非成長領域的投資。您是否預計成長率會進一步下降，或者除了我們目前在傳統領域看到的問題之外還會出現其他問題，從而促使實施此類計劃？

And second, when we talk about less lower-growth areas, these are your largest areas, so switches and routers. And the question is, how do you deal with -- how do you balance between the need to compete and the need to invest? And maybe you can give us some color on the restructuring and what you plan on doing? Thank you.

其次，當我們談論成長較少的低成長領域時，這些是最大的領域，因此是交換器和路由器。問題是，你如何處理──如何平衡競爭需求和投資需求？也許您可以向我們介紹重組的情況以及您計劃做什麼？謝謝。

I'll make some initial comments and again pass it to Kelly. Tal, good questions. Primarily, we are looking at the areas of growth that we believe will grow faster than others. So it's more of a relative statement than it is an absolute statement. At the same time, we actually are working very diligently on bringing innovation to our core. We're focused on a tighter coupling of security into the core. We're focused on policy and orchestration and cloud-based management across the entire portfolio.

我會做一些初步評論，然後再次將其傳遞給凱利。塔爾，好問題。首先，我們正在關注那些我們認為會比其他領域成長更快的領域。因此，它更多的是一個相對的陳述，而不是絕對的陳述。同時，我們實際上正在非常努力地將創新引入我們的核心。我們專注於將安全性與核心更緊密地結合。我們專注於整個產品組合的政策、協調和基於雲端的管理。

So there is a significant amount of innovation the teams are working on there over the next several quarters as well. So it's not that we're ignoring one in favor of another. We just want to make sure that our of investments are commensurate with the growth opportunity from a relative perspective. Kelly?

因此，在接下來的幾個季度裡，團隊也會在那裡進行大量創新。因此，我們並不是想要忽視一個而青睞另一個。我們只是想確保我們的投資從相對角度來看與成長機會相稱。凱莉？

I think you said it well. We are investing in basically every business unit we have, right? So we're investing in the core and key areas. We're looking for those pockets of where the growth is, whether it's in core routing and switching or security and collaboration. So we're being very smart about where we're putting our money, and that's how we're looking at this.

我覺得你說得很好。我們基本上對我們所有的業務部門都進行了投資，對嗎？因此，我們正在對核心和關鍵領域進行投資。我們正在尋找那些具有成長潛力的領域，無論是核心路由和交換領域，還是安全和協作領域。因此，我們非常明智地決定將資金投入到哪裡，這就是我們看待這個問題的方式。

We'll go ahead and take our next question, please.

我們將繼續回答下一個問題。

Thank you. Our next question is from Steve Milunovich with UBS Securities. Your line is now open.

謝謝。我們的下一個問題來自瑞銀證券的史蒂夫·米盧諾維奇。您的線路現已開通。

Thank you very much. Could you talk a bit more about the factors behind your first-quarter guidance? Revenue being flat is clearly below the recent growth rate, and the gross margin is also down a fair amount sequentially. So what do you attribute that to?

非常感謝。能否進一步談談第一季業績指引背後的因素？營收持平明顯低於近期的成長率，毛利率也較上一季大幅下降。那你認為這是什麼原因造成的呢？

I'll give a couple of macro comments here. So we obviously, are calling out the weakness we saw from a demand perspective in Q4 relative to SP and emerging countries. We also -- obviously as we look forward, we're just uncertain how to model any improvement in those two, in particular, going forward.

我將在這裡給出一些宏觀評論。因此，我們顯然指出了第四季度相對於 SP 和新興國家的需求疲軟。我們也——顯然，當我們展望未來時，我們只是不確定如何模擬這兩者中的任何改進，特別是未來的改進。

And the other issue is that there is some impact from the transition in our business model. I'll give you a quick example. We restructured and drove new value in how we put together certain Cisco One Software packages for our customers. And in Q4, as an example, there was about $139 million that would have been recognized as revenue that, because of the way we have now structured those offers and the value the customers see in those, those are going to transition to ratable revenue recognition. So there is a slight impact from that as we look forward as well. And those are the key things that led us to our guide.

另一個問題是我們的商業模式的轉變帶來了一些影響。我給你舉一個簡單的例子。我們重組了為客戶組合某些 Cisco One 軟體包的方式，並推動了新價值的產生。以第四季度為例，原本應確認為收入的金額約為 1.39 億美元，但由於我們現在對這些優惠的結構以及客戶從中看到的價值，這些收入將轉為按比例確認的收入。因此，我們展望未來時，這也會產生輕微的影響。這些就是引導我們找到這份指南的關鍵因素。

Yes, and just on -- the only thing to add to that -- again, we base it on what we see, and again, we did see the additional slowdown in SP and emerging. That makes us a bit cautious. On the margins, Steve, we're going to be driving as much as we can in those margins, and we'll be working that. But as of right now, this is what we see.

是的，而且——唯一要補充的是——我們再次根據我們所看到的情況做出判斷，而我們確實看到了 SP 和新興市場的進一步放緩。這讓我們有點謹慎。在邊緣領域，史蒂夫，我們將盡我們所能，並為此而努力。但就目前而言，我們看到的情況就是這樣。

Next question, please?

請問下一個問題？

Our next question comes from James Faucette with Morgan Stanley. Your line is now open.

我們的下一個問題來自摩根士丹利的 James Faucette。您的線路現已開通。

Thank you very much. I just wanted a quick question. I think this ties into Service Provider. Routing was surprising to us, that it wasn't a little bit better, and I think that's probably attributable to Service Provider, and I want to make sure that's the case.

非常感謝。我只是想問一個簡單的問題。我認為這與服務提供者有關。路由問題令我們感到驚訝，它並沒有好轉，我認為這可能歸因於服務供應商，我想確保情況確實如此。

And I guess I'd like kind of your view -- it seems like with new products in that category, that maybe that, that category at some point becomes pretty spring-loaded, as at least we would expect the valuation units to be shipped in and pent-up demand to develop. But I want to know if we're thinking about that correctly, and kind of how we should think about the router segment going forward? Thanks.

我想聽聽你的看法——似乎有了這一類別的新產品，這個類別在某個時候可能會變得非常活躍，因為至少我們預計估價單位將會運入，被壓抑的需求也會得到發展。但我想知道我們是否正確地考慮了這一點，以及我們應該如何看待路由器領域的未來發展？謝謝。

Yes, James. You're correct in that over 50% of our routing business comes from Service Providers. So there's a direct correlation there. And I think if you look at the discussions that have are have taken place with our peers, you look at some of the analyst reports on SP CapEx, we actually saw exactly what the analysts have talked about. I saw one report that discussed double-digit declines outside of the United States, and maybe flat to slightly up inside the US, which is effectively what we saw from a demand perspective. So it was very much in line with that.

是的，詹姆斯。您說得對，我們超過 50% 的路由業務來自服務提供者。因此，這兩者之間存在直接的關聯。我認為，如果你看一下我們與同行進行的討論，看看一些關於 SP CapEx 的分析師報告，我們實際上就看到了分析師們所談論的內容。我看到一份報告討論了美國以外地區的兩位數下降，而美國國內可能持平或略有上升，這實際上是我們從需求角度看到的情況。所以這非常符合這一點。

As far as what we see going forward, look, we certainly don't expect that these networks over time, that the traffic will decline. So I think it's a matter of timing. The video loads on the networks continue to increase. So we would think about it the same way you do, but we also know that in uncertain times, that customers tend to sweat assets as long as they possibly can.

就我們對未來的展望而言，我們當然不希望這些網路的流量隨著時間的推移而下降。所以我認為這只是時間問題。網路上的視訊負載持續增加。因此，我們會以與您相同的方式來思考這個問題，但我們也知道，在不確定的時期，客戶往往會盡可能長時間地浪費資產。

Thanks, Chuck. Sam, we'll go ahead and take our next question, please.

謝謝，查克。山姆，我們繼續回答下一個問題。

Yes, our next question is from James Suva with Citigroup Global Markets. Your line is now open.

是的，我們的下一個問題來自花旗環球金融的詹姆斯蘇瓦。您的線路現已開通。

Thanks very much, I appreciate the opportunity. And congratulations, Chuck and Kelly, to your good results. My question is just one part and pretty simple. Regarding Brexit, you're one of the first major tech companies to report that have a full-month post of the Brexit event happening. Can you talk about, did that influence your visibility, your spending patterns or demand orders, or book-to-bill, or anything like that? Any push-outs, any hesitations?

非常感謝，我很珍惜這次機會。恭喜查克和凱利取得好成績。我的問題只是其中的一部分，而且非常簡單。關於英國脫歐，你們是首批通報英國脫歐事件並發布整整一個月公告的大型科技公司之一。您能談談這是否影響了您的知名度、支出模式或需求訂單、訂單出貨比或諸如此類的事情嗎？有任何延期、有任何猶豫嗎？

Chuck, you talked many times about uncertain economic times we're in. I was wondering, has it been compounded by Brexit, or was that kind of built in and you actually didn't see much of an impact? Thank you very much.

查克，你多次談到我們正處於不確定的經濟時期。我想知道，這種情況是否因英國脫歐而加劇，還是說這是固有問題，而你實際上並沒有看到太大的影響？非常感謝。

Thanks, Jim. Well, I'll tell you, after the first year in this job, I know for a fact that every month there are new things that we face. And the good news is we tend to execute well and we deal with those. As it relates to -- first off, let me just say, in the EMEA business, the decline there was largely attributed to Service Providers. So I just want to make that clear. We would not suggest that the broad-based shift in the EMEA results was solely dependent upon Brexit.

謝謝，吉姆。好吧，我告訴你，在這份工作的第一年後，我確實知道我們每個月都會面臨新的事情。好消息是，我們往往能很好地執行並處理這些問題。首先，我只想說，在歐洲、中東和非洲地區，業務的下滑主要歸因於服務提供者。所以我只是想把這一點說清楚。我們不會認為歐洲、中東和非洲地區業績的廣泛轉變僅僅取決於英國脫歐。

What we saw from a Brexit perspective is exactly what you would expect. In the UK proper, we saw customers pause. We saw them just kind of slow a bit because they're uncertain. And we also saw the impact of the currency devaluation, which you would expect. But we remain very committed there. We think we'll work through this. But those are the real impacts.

從英國脫歐的角度來看，我們看到的情況正是你所期望的。在英國本土，我們看到顧客們停下來了。我們看到他們有點慢，因為他們不確定。我們也看到了貨幣貶值的影響，這也是意料之中的。但我們仍然堅定地致力於此。我們認為我們會解決這個問題。但這些才是真正的影響。

Great, thanks, Chuck. Sam, let's go ahead and take the next question, please.

太好了，謝謝，查克。山姆，請我們繼續回答下一個問題。

Yes, our next question is from Mark Moskowitz with Barclays. Your line is now open.

是的，我們的下一個問題來自巴克萊銀行的馬克·莫斯科維茨。您的線路現已開通。

Yes, thank you, good afternoon. I wanted to ask a follow-up around the restructuring. Can you give us any sense, Chuck or Kelly, is there any benefit here from the early stages of the Ericsson relationship, allowing you to leverage that JV so that you can actually drive some of this restructuring? And does that imply there could be incremental restructuring down the road?

是的，謝謝，下午好。我想問有關重組的後續問題。查克或凱利，您能否告訴我們，與愛立信合作的早期階段是否有任何好處，讓你們能夠利用合資企業來真正推動部分重組？這是否意味著未來可能會出現漸進式重組？

And then my question is around the cloud. We keep getting a lot of questions around what is Cisco's exposure to the cloud in terms of, can you give us any sense around the percentage of revenue, at least to private cloud or public cloud deployments that you're serving, from an infrastructure perspective? Thank you.

然後我的問題是關於雲的。我們不斷收到很多關於思科在雲端運算方面的曝光度的問題，您能否從基礎設施的角度告訴我們至少您所服務的私有雲或公有雲部署的收入百分比？謝謝。

On the Ericsson front, I'll tell you that the partnership continues to move forward, and there was really no correlation or discussion of the Ericsson partnership as it related to the decision on restructuring. We think that, again, that the original benefits that we saw with that partnership, with their global scale for services, their OSS capabilities, their radio expertise, combined with our IT expertise in data center and security, and other of capabilities, as well as the enterprise and IoT, were really the drivers there. So we see that continuing.

在愛立信方面，我可以告訴您，合作關係將繼續向前發展，並且與愛立信的合作關係實際上與重組決定沒有任何關聯或討論。我們再次認為，我們透過這種合作關係所看到的最初的好處，包括他們的全球服務規模、他們的 OSS 能力、他們的無線電專業知識，加上我們在資料中心和安全方面的 IT 專業知識和其他能力，以及企業和物聯網，才是真正的驅動力。因此，我們認為這種情況將會持續下去。

As it relates to the cloud impact, I think when we look at sort of next-generation data center build-out in the private cloud, we look at our ACI portfolio, and we saw a $2.3 billion annualized business that grew 36%. So we feel like customers continue to move towards a hybrid cloud environment. The orchestration capability that we talked about with cloud center, which is from the CliQr acquisition, combined with the knowledge that we're going to be able to provide the customers through Tetration.

至於雲端的影響，我認為當我們研究私有雲中的下一代資料中心建設時，我們會研究我們的 ACI 產品組合，我們發現年化業務價值 23 億美元，成長了 36%。因此，我們感覺客戶正在繼續轉向混合雲環境。我們討論的雲端中心的編排功能來自對 CliQr 的收購，結合了我們將能夠透過 Tetration 為客戶提供的知識。

So think about Tetration providing analytics about what's going on, CliQr and ACI then being able to deploy policy and move workloads between public and private cloud. And that's what we think customers are going to look for, and we think we're in a pretty good spot there.

因此，想像一下 Tetration 提供有關正在發生的事情的分析，然後 CliQr 和 ACI 能夠部署策略並在公有雲和私有雲之間移動工作負載。我們認為這就是客戶所尋找的，我們認為我們在這方面處於相當有利的位置。

Sam, let's go ahead and take the next question, please?

山姆，我們繼續回答下一個問題，好嗎？

Yes. Our next question is from Mitch Steves with RBC Capital Markets. Your line is now open.

是的。我們的下一個問題來自加拿大皇家銀行資本市場的 Mitch Steves。您的線路現已開通。

Hi, guys, thanks for taking my question. So my first part is kind of on the product gross margin. So it looks like it was actually down sequentially in July, and I think that's primarily due to selling more switching and routing. So does that mean in October quarter, you think that the mix is going to shift more to legacy kind of routing and switching, versus the remaining, I guess, call it, advanced portfolio?

大家好，感謝你們回答我的問題。我的第一部分是關於產品毛利率的。因此看起來七月份的銷售實際上是環比下降的，我認為這主要是因為交換器和路由產品的銷售增加了。那麼，這是否意味著在 10 月季度，您認為產品組合將更多地轉向傳統的路由和交換，而不是剩下的，我猜，稱之為高級產品組合？

And then just one small one. What was the total acquisition revenue you guys got from all the acquisitions this quarter?

然後就只有一個小的。本季你們從所有收購中獲得的總收購收入是多少？

Yes, so I'll take that. So on the gross margins, we do have seasonality of when different mix of our products are bigger. For example, data center and services are bigger in Q2 and Q4, so you can see that normal seasonality in there.

是的，我接受。因此，就毛利率而言，我們的產品組合在不同時期確實具有季節性。例如，資料中心和服務在第二季和第四季規模較大，因此您可以看到其中的正常季節性。

As I said to the earlier question, I think from an overall perspective, we feel great about our gross margins. We are being smart about the tradeoff on top line and bottom line, and the teams continue to do great work in terms of driving productivity and costs out of the products that allow us to do that.

正如我之前回答的問題一樣，我認為從整體角度來看，我們對我們的毛利率感到非常滿意。我們對頂線和底線之間的權衡非常明智，團隊在提高產品的生產力和成本方面繼續做出出色的工作，使我們能夠做到這一點。

From a pricing perspective, our price ASP price erosion that we saw in Q4 was basically in line with what we saw in Q3 -- actually, 20 basis points better. So we're still in that same range; we're not seeing any change there. In terms of acquisition revenue, we don't typically disclose that, but I can tell you it was roughly less than a point.

從定價角度來看，我們在第四季度看到的價格 ASP 價格下降基本上與第三季一致 - 實際上，好 20 個基點。所以我們仍然處於同一範圍內；我們沒有看到任何變化。就收購收入而言，我們通常不會披露，但我可以告訴你，它大約不到一個點。

Next question, please.

請回答下一個問題。

Thank you very much.

非常感謝。

Yes.

是的。

And our next question is from Jess Lubert with Wells Fargo Securities. Your line is now open.

下一個問題來自富國證券的 Jess Lubert。您的線路現已開通。

Hi, guys. I was hoping you could touch upon the activity you saw from some of your top cloud customers, to what degree you're continuing to see strength in that vertical? And then on the switching business, which saw a return to growth following several soft quarters, I was hoping you could help us understand to what extent ACI revenues are now greater than some of the legacy data center offerings?

嗨，大家好。我希望您能談談您從一些頂級雲端客戶看到的活動，您在多大程度上繼續看到該垂直領域的實力？然後，關於交換業務，在經歷了幾個疲軟的季度後，該業務恢復了成長，我希望您能幫助我們了解 ACI 收入現在在多大程度上高於一些傳統資料中心產品？

And presuming the mix of legacy in the data center is now smaller than ACI, would you expect the switching business overall to grow moving forward? Or are there offsets that could cause that to vacillate going forward?

假設資料中心的傳統組合現在比 ACI 小，您是否預期交換業務整體上會向前成長？或者是否存在可能導致其未來動搖的抵消因素？

Thanks, Jess. On the web scale players, what we reported in the last couple of quarters was our top-10 web scale customers, and that business was up 2% this quarter. But it is a -- when you have 10 customers in sort of a reporting segment like that, it's highly dependent upon ordering cycles. So I'm not concerned about our relevance or anything relative to that.

謝謝，傑西。對於網路規模參與者，我們在過去幾季報告了我們的十大網路規模客戶，本季業務成長了 2%。但當你在這樣的報告部門中有 10 個客戶時，它高度依賴訂購週期。所以我並不擔心我們的相關性或與此相關的任何事情。

On the switching business, I think it's important to understand a couple things. Number one, your question relative to the ACI portfolio, and has it exceeded the traditional portfolio, I think we -- the answer to that is, yes. And our orders there were -- I think grew in the data center switching business, were up mid single-digits.

關於轉換業務，我認為了解幾件事很重要。第一，您的問題與 ACI 投資組合有關，它是否超越了傳統投資組合，我認為答案是肯定的。我們的訂單 - 我認為資料中心交換業務有所成長，成長了中等個位數。

Yes, in the revenue, on the revenue side, yes.

是的，就收入而言，是的。

On the revenue side. And so that transition continues to go well, and we see customers that are investing in new cloud-ready architectures, are choosing the ACI platforms, which is showing in the results. When you look at our overall switching portfolio, it's just important to understand the math on what percentage of that business is still attributed to our campus portfolio.

在收入方面。因此，這種轉變持續順利進行，我們看到投資新的雲端就緒架構的客戶正在選擇 ACI 平台，這在結果中有所體現。當您查看我們的整體轉換組合時，重要的是要了解該業務中有多少百分比仍然歸因於我們的校園組合。

And as we said, any time we have these macro -- these environments where customers have any level of uncertainty, that tends to be an area that they will continue to sweat, if they can. And our job over the next several quarters is to drive innovation in that portfolio, integrate security more tightly, and again, focus on orchestration policy and helping our customers lower their costs. And that's what we're going to try to do.

正如我們所說的，任何時候，當我們面臨這些宏觀環境時，如果客戶存在一定程度的不確定性，那麼這往往是他們會繼續擔心的領域，如果他們能夠做到的話。我們在接下來的幾個季度中的工作是推動該產品組合的創新，更緊密地整合安全性，並再次專注於協調策略並幫助我們的客戶降低成本。這正是我們要努力去做的事。

Thanks, Chuck. Next question, please?

謝謝，查克。請問下一個問題？

Yes, our next question is from Jayson Noland with Robert Baird. Your line is now open.

是的，我們的下一個問題來自羅伯特貝爾德 (Robert Baird) 的傑森諾蘭 (Jayson Noland)。您的線路現已開通。

Okay, great. I wanted to ask about long-term revenue growth. I think, Kelly, 3% to 6% has been discussed in the past, but with the shift to software and subscription, and service provider uncertainty, that seems like a stretch. And I'm not asking for specific guidance, but is there some direction that you would suggest for our long-term models?

好的，太好了。我想問一下長期收入成長的情況。凱利，我認為過去曾討論過 3% 到 6% 的比例，但隨著向軟體和訂閱的轉變以及服務提供者的不確定性，這似乎有些牽強。我並不是尋求具體的指導，但您對我們的長期模式有什麼建議嗎？

Yes, you know, I think that's a great question, Jayson. If you go back to -- I think that was back in June of 2015, was our last financial analyst conference, it has changed quite a bit. Our transition has accelerated, that we've been accelerating. And I'd say the other major change from that long-term guidance was certainly our expectation of the data center business, and that market has changed.

是的，你知道，我認為這是一個很好的問題，傑森。如果你回顧一下——我想那是在 2015 年 6 月，是我們上一次的金融分析師會議，現在情況已經發生了很大變化。我們的轉型已經加速，而且我們一直在加速。我想說的是，長期指導的另一個重大變化肯定是我們對資料中心業務的預期，而且市場已經發生了變化。

So I'd say there is no long-term model change per se right now, but we're in the process of planning an analyst conference hopefully at the end of the calendar year here, and we'll update that. But I would say those are the two major assumption changes since we did that.

所以我想說，目前本身沒有長期的模型變化，但我們正在計劃在今年年底召開一次分析師會議，屆時我們將更新這一消息。但我想說，自從我們這樣做以來，這兩個假設已經發生了重大變化。

Thanks, Kelly. We have one more question, time for one more question.

謝謝，凱利。我們還有一個問題，是時候再問一個問題了。

Yes, and our last question comes from Simon Leopold with Raymond James. Your line is now open.

是的，我們的最後一個問題來自 Raymond James 的 Simon Leopold。您的線路現已開通。

Great, thank you very much. I wanted to see if we could talk a little bit about longer term on the routing business, specifically. What you laid out sounds like very much the cyclical challenges facing your peers, as well as weak carrier CapEx. But if you could help us understand some of the longer-term themes around what's going on in routing, and how that sector may grow and your business may grow. And I'm pondering the implications around sort of SDN, as well as some of the architectural shifts of putting more of the burden into the optical space. Thank you.

太好了，非常感謝。我想看看我們是否可以具體談談路由業務的長期發展。您所描述的聽起來很像是您的同行所面臨的周期性挑戰，以及運營商資本支出疲軟。但是如果您能幫助我們了解有關路由領域的一些長期主題，以及該領域如何發展以及您的業務如何成長。我正在思考 SDN 的各種影響，以及將更多負擔放到光學空間的一些架構轉變。謝謝。

Yes, Simon, thanks for the question. When I think about routing, I actually think about it in several different ways. Number one, you've got the SP traditional portfolio with Edge access and core, which we discussed earlier, which is largely just a consumption-driven cycle that we go through.

是的，西蒙，謝謝你的提問。當我考慮路由時，我實際上會以幾種不同的方式來考慮它。首先，您擁有具有邊緣存取和核心的 SP 傳統產品組合，我們之前討論過，這基本上只是我們經歷的消費驅動週期。

In the enterprise space, we have this transition to software-defined wide-area networking, which we're very well-positioned in right now with our IWAN portfolio. And we're actually working on a key differentiator for us, which I think is, as our teams have built out the ability to really drive the next-generation secure Edge. With our cloud security capabilities, the combination of dynamically provisioning those branch solutions, with the ability to have robust cloud security and Edge security, is going to be a real differentiator for us. So we see that being another opportunity for us going forward in the routing space.

在企業領域，我們正在向軟體定義的廣域網路轉型，目前我們憑藉 IWAN 產品組合在該領域佔據著非常有利的地位。實際上，我們正​​在努力尋找一個關鍵的差異化因素，我認為，我們的團隊已經具備了真正推動下一代安全邊緣的能力。憑藉我們的雲端安全功能，動態配置這些分支解決方案以及強大的雲端安全和邊緣安全能力的結合將成為我們真正的差異化因素。因此，我們認為這是我們在路由領域前進的另一個機會。

And then finally, when we talk about the security and the security-driven refresh of our core, in Q4 we actually had a couple of customers -- I talked earlier in the opening comments about Stealthwatch Learning Networks. Which is effectively a machine-learning algorithm that runs at the edge of the network in the branch, and it actually does machine learning and a little bit of AI to determine normalcy for customers, and then flag for them when they see abnormal behavior going on. And we saw a couple of customers that actually made the decision to do a branch router refresh based on that capability, which we just launched in July.

最後，當我們談論安全性以及核心的安全驅動更新時，在第四季度我們實際上有幾個客戶——我之前在開場白中談到了 Stealthwatch Learning Networks。這實際上是一種在分支機構網路邊緣運行的機器學習演算法，它實際上透過機器學習和少量人工智慧來確定客戶的正常情況，然後在發現異常行為時向他們發出警報。我們看到一些客戶實際上決定根據我們剛剛在 7 月推出的功能來更新分支路由器。

So we believe that there's innovation that we can bring that will lead us to a refresh opportunity in the core, and we think that's largely going to be driven around security. And we're seeing some real early examples. We need to see how it plays out, but we're seeing some early examples there.

因此，我們相信，我們能夠帶來的創新將為我們帶來核心的更新機會，我們認為這主要將圍繞著安全性來推動。我們看到了一些真實的早期例子。我們需要觀察它如何發揮作用，但我們已經看到了一些早期的例子。

All right, Marilyn. Thank you very much. In wrapping up, I just want to summarize our priorities again as we think about the year ahead. First off, we're committed to executing against the financial model and against our priorities, regardless of the conditions of the market. And we're committed to making the decisions that are necessary to drive our growth, and also to fulfill the commitments and obligations that we made to our customers, partners, and shareholders.

好的，瑪麗蓮。非常感謝。最後，我想再次總結我們在展望未來一年時的優先事項。首先，無論市場狀況如何，我們都致力於按照財務模型和我們的優先事項執行。我們致力於做出必要的決策來推動我們的成長，並履行我們對客戶、合作夥伴和股東的承諾和義務。

We also are pleased with where we are on the transition to software and subscription models, and you can assume that we'll continue to accelerate that over the next year. We also -- I believe we'll drive a greater pace of innovation than you've seen in the last several years from Cisco. Our teams are very excited. There's a lot of things going on. So we're very committed to driving innovation.

我們對向軟體和訂閱模式的過渡也感到滿意，您可以假設我們將在明年繼續加速這一進程。我們也—我相信我們將推動比思科過去幾年所見更快的創新步伐。我們的團隊非常興奮。有很多事情正在發生。因此，我們非常致力於推動創新。

And then finally, just to reiterate, our long-term strategy to create greater value for our customers and our shareholders, while ensuring that we're also making the decisions for Cisco's long-term success, will remain at the forefront. So I want to thank everyone for spending time with us today, and we'll look forward to talking to all of you soon. Marilyn?

最後，再次重申，我們的長期策略是為我們的客戶和股東創造更大的價值，同時確保我們為思科的長期成功做出決策，而這項策略將始終處於首位。所以我要感謝大家今天抽出時間與我們在一起，我們期待很快與大家交談。瑪麗蓮？

Thanks, Chuck. Cisco's next quarterly call, which will reflect our FY17 first-quarter results, will be on Wednesday, November 16, 2016, at 1:30 PM Pacific Time, 4:30 PM Eastern Time. Again, I'd like to remind the audience that in light of Regulation FD, Cisco's policy is not to comment on its financial guidance during the quarter unless it is done through an explicit public disclosure.

謝謝，查克。思科的下一次季度電話會議將於 2016 年 11 月 16 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 2017 財年第一季的業績。再次，我想提醒觀眾，根據公平披露規則，思科的政策是不對其本季度的財務指導發表評論，除非透過明確的公開披露進行評論。

We now plan to close the call. If you have any further questions, please feel free to contact any member of the Cisco Investor Relations department. And we thank you very much for joining today's call.

我們現在計劃結束通話。如果您有任何其他問題，請隨時聯絡思科投資者關係部門的任何成員。非常感謝您參加今天的電話會議。

Thank you for participating on today's conference call. If you would like to listen to the call in its entirety, you may call 1-888-566-0452. For participants dialing from outside the US, please dial 1-203-369-3048. This concludes today's conference. 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 1-888-566-0452。對於從美國境外撥打電話的參與者，請撥打 1-203-369-3048。今天的會議到此結束。您現在可以斷開連線。