思科 (CSCO) 2018 Q1 法說會逐字稿

Welcome to Cisco's First Quarter of Fiscal Year 2018 Financial Results Conference Call.

歡迎參加思科 2018 財年第一季度財務業績電話會議。

At the request of Cisco, today's call is being recorded.

應思科的要求，對今天的通話進行錄音。

If you have any objections, you may disconnect.

如有異議，可斷開連接。

Now, I would like to introduce Marilyn Mora, Head of Investor Relations.

現在，我想介紹一下投資者關係主管 Marilyn Mora。

Ma'am, you may begin.

女士，您可以開始了。

Thanks, Mark.

謝謝，馬克。

Welcome, everyone, to Cisco's First Quarter Fiscal 2018 Quarterly Earnings Conference Call.

歡迎大家參加思科 2018 財年第一季度季度收益電話會議。

This is Marilyn Mora, Head of Investor Relations, and I'm joined by Chuck Robbins, our CEO; and Kelly Kramer, our CFO.

我是投資者關係主管 Marilyn Mora，我們的首席執行官 Chuck Robbins 也加入了我的行列；和我們的首席財務官 Kelly Kramer。

By now, you should have seen our earnings press release.

到目前為止，您應該已經看到了我們的收益新聞稿。

A corresponding webcast with slides, including supplemental information, will be made available on our website in the Investor Relations section following the call.

電話會議後，將在我們網站的“投資者關係”部分提供相應的帶幻燈片的網絡廣播，包括補充信息。

Income statements, full GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements and other financial information can also be found in the Financial Information section of our Investor Relations website.

損益表、完整的 GAAP 與非 GAAP 調節信息、資產負債表、現金流量表和其他財務信息也可以在我們的投資者關係網站的“財務信息”部分找到。

As a reminder, effective in Q1, we began reporting our revenue in the following categories: Infrastructure platforms, Applications, Security, Other Products and Services.

提醒一下，從第一季度開始，我們開始報告以下類別的收入：基礎設施平台、應用程序、安全、其他產品和服務。

As discussed in our Q4 earnings call and in our October 23 press release, this change better aligns our product categories with our evolving business model.

正如我們在第四季度財報電話會議和 10 月 23 日的新聞稿中所討論的那樣，這一變化更好地使我們的產品類別與我們不斷發展的商業模式保持一致。

Our segments will continue to be based on geographies, which consists of the Americas, EMEA and APJC.

我們的細分市場將繼續基於地域，包括美洲、EMEA 和 APJC。

So this change only impacts how we report revenue by product category.

因此，這一變化只會影響我們按產品類別報告收入的方式。

We've included quarterly reclassified revenue amounts for the last 3 fiscal years on our website.

我們在網站上列出了過去 3 個財政年度的季度重新分類收入金額。

Click on the Financial Reporting section of the website to access these documents.

單擊網站的“財務報告”部分可訪問這些文件。

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.

在整個電話會議中，除非另有說明，否則我們將參考 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。

All comparisons throughout this call will be made on a year-over-year basis unless stated otherwise.

除非另有說明，否則本次電話會議的所有比較都將按年進行。

The matters we will be discussing today include forward-looking statements, including the guidance we will be providing for the second quarter of fiscal 2018.

我們今天將討論的事項包括前瞻性陳述，包括我們將為 2018 財年第二季度提供的指引。

They are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent report on Form 10-K, which identifies important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

它們受制於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，特別是關於 10-K 表格的最新報告，該報告確定了可能導致實際結果與報告中包含的結果大不相同的重要風險因素。前瞻性陳述。

With respect to guidance, please also see the slides and press release that accompany this call for further details.

關於指南，另請參閱本次電話會議隨附的幻燈片和新聞稿以了解更多詳細信息。

As a reminder, Cisco will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure.

提醒一下，除非通過明確的公開披露，否則思科不會就本季度的財務指引發表評論。

With that, I'll turn it over to Chuck.

有了這個，我會把它交給查克。

Thank you, Marilyn, and good afternoon, everyone.

謝謝瑪麗蓮，大家下午好。

Our results this quarter demonstrate the continued progress we're making on our strategic priorities.

我們本季度的業績表明我們在戰略重點方面取得了持續進展。

In Q1, we delivered a solid quarter with revenue of $12.1 billion and non-GAAP EPS of $0.61.

第一季度，我們實現了穩健的季度收入 121 億美元，非 GAAP 每股收益 0.61 美元。

We are seeing great traction with our new intent-based networking solutions, delivering accelerated innovation across our portfolio and offering a broader range of new consumption options to our customers, resulting in strong increases in our software and subscription revenue.

我們看到了基於意圖的新網絡解決方案的巨大吸引力，加速了我們產品組合的創新，並為我們的客戶提供了更廣泛的新消費選擇，從而使我們的軟件和訂閱收入大幅增長。

The progress we've made resulted in all 3 of our geographic regions returning to orders growth during Q1.

我們取得的進展使我們所有 3 個地理區域在第一季度恢復了訂單增長。

Cisco has always been about connecting people, information and machines at scale.

思科一直致力於大規模連接人、信息和機器。

Today, the network is becoming more pervasive and critical to business success as billions of new connections are added.

如今，隨著數十億新連接的加入，網絡變得越來越普遍，對業務成功至關重要。

We expect these new connections will become increasingly automated, intelligent and secure, delivering unprecedented insights and intelligence to our customers.

我們預計這些新連接將變得越來越自動化、智能和安全，為我們的客戶提供前所未有的洞察力和智能。

Cisco's vision is to deliver highly secure, intuitive technology across our portfolio that is designed to constantly learn, adapt and protect to drive business outcomes with greater speed and agility.

思科的願景是在我們的產品組合中提供高度安全、直觀的技術，這些技術旨在不斷學習、適應和保護，以更快的速度和敏捷性推動業務成果。

This extends to the network, next-generation data center architectures, advanced IoT applications, end-to-end analytics and our collaboration technologies.

這擴展到網絡、下一代數據中心架構、高級物聯網應用程序、端到端分析和我們的協作技術。

Our vision is resonating with customers and partners around the world as we help them build more secure, intelligent platforms for their digital businesses.

我們的願景引起了全球客戶和合作夥伴的共鳴，因為我們幫助他們為其數字業務構建更安全、更智能的平台。

Today, most of our customers are operating in complex, multi-cloud environments, and Cisco is well-positioned to provide them with networking capabilities, enterprise-class security and support, together with cloud scale, agility and economics.

如今，我們的大多數客戶都在復雜的多雲環境中運營，而思科有能力為他們提供網絡功能、企業級安全和支持，以及雲規模、敏捷性和經濟性。

Our new partnership with Google is a good example of this.

我們與穀歌的新合作夥伴關係就是一個很好的例子。

Over the last few months, our engineering teams have been working closely together to jointly develop a new hybrid cloud solution that is designed to enable applications and services to be deployed, managed and secured across on-premise environments as well as the Google Cloud Platform, bringing the best of cloud to the enterprise.

在過去的幾個月裡，我們的工程團隊一直在密切合作，共同開發一種新的混合雲解決方案，該解決方案旨在使應用程序和服務能夠在本地環境和谷歌云平台上部署、管理和保護，為企業帶來最好的雲。

This partnership is an example of the work we are doing with all of the large web scale providers.

這種夥伴關係是我們與所有大型網絡規模提供商合作的一個例子。

We are also investing to develop and acquire new technologies to extend our multi-cloud portfolio.

我們還在投資開發和獲取新技術，以擴展我們的多雲產品組合。

This includes ACI Anywhere, which we announced this quarter; and acquisitions such as CliQr, OpenDNS, CloudLock, AppDynamics and Viptela.

這包括我們在本季度宣布的 ACI Anywhere；以及對 CliQr、OpenDNS、CloudLock、AppDynamics 和 Viptela 等公司的收購。

Now I'd like to cover some key business highlights in our new product reporting categories.

現在我想介紹一下我們新產品報告類別中的一些關鍵業務亮點。

First, let's start with Infrastructure Platforms.

首先，讓我們從基礎設施平台開始。

Our launch of the network intuitive in June is an example of the investment and innovation we're driving in our core business.

我們在 6 月推出的網絡直覺是我們在核心業務中推動投資和創新的一個例子。

These new intent-based networking capabilities are providing customers unparalleled insights and intelligence, together with highly differentiated security and programmability.

這些新的基於意圖的網絡功能正在為客戶提供無與倫比的洞察力和智能，以及高度差異化的安全性和可編程性。

Our new subscription-based Catalyst 9000 Switching platform has been adopted by more than 1,100 customers in just over 3 months.

我們新的基於訂閱的 Catalyst 9000 交換平台在短短 3 個月內已被 1,100 多家客戶採用。

We expect continued momentum throughout fiscal 2018, and we're pleased that the vast majority of Catalyst 9000 customers are buying our most advanced software subscription offer.

我們預計整個 2018 財年都會保持這種勢頭，我們很高興絕大多數 Catalyst 9000 客戶都在購買我們最先進的軟件訂閱服務。

Additionally, we saw good performance in our next-generation data center switching platforms, as customers continue to shift to 10-gig, 40-gig and 100-gig architectures and embrace multi-cloud adoption.

此外，隨著客戶繼續轉向 10-gig、40-gig 和 100-g 架構並接受多雲採用，我們在下一代數據中心交換平台中看到了良好的性能。

We continue to advance our intent-based networking for data center and private cloud environments with the latest software release of ACI.

我們通過最新的 ACI 軟件版本繼續推進我們面向數據中心和私有云環境的基於意圖的網絡。

Over 4,000 ACI customers are benefiting from increased business agility with network automation, simplified management and improved security.

超過 4,000 家 ACI 客戶受益於通過網絡自動化、簡化的管理和改進的安全性提高的業務靈活性。

Going forward, we see a tremendous opportunity to benefit from a shift in customer demand from standalone products to integrated platforms with our intent-based infrastructure portfolio providing unmatched benefits.

展望未來，我們看到了巨大的機會，可以從客戶需求從獨立產品向集成平台的轉變中獲益，而我們基於意圖的基礎設施產品組合提供了無與倫比的優勢。

Now turning to Applications.

現在轉向應用程序。

Applications are absolutely essential to every digital business strategy.

應用程序對於每個數字業務戰略都是絕對必要的。

To maximize their effectiveness, companies require a highly secure network that closely monitors applications and workload performance across a complex multi-cloud environment.

為了最大限度地提高效率，公司需要一個高度安全的網絡來密切監控複雜的多雲環境中的應用程序和工作負載性能。

Our acquisition of AppDynamics is core to our capability of providing end-to-end analytics from the network to the data center to the application.

我們對 AppDynamics 的收購是我們提供從網絡到數據中心再到應用程序的端到端分析能力的核心。

Within our Applications business, we are enabling new capabilities based on advanced AI and machine learning across our portfolio.

在我們的應用程序業務中，我們正在我們的產品組合中啟用基於高級人工智能和機器學習的新功能。

An example of this is our acquisition of Perspica, providing deep machine learning, driven analytics to further extend AppDynamics' leading capabilities in application intelligence.

這方面的一個例子是我們收購 Perspica，提供深度機器學習、驅動分析以進一步擴展 AppDynamics 在應用程序智能方面的領先能力。

Additionally, we announced our latest innovation on the Cisco Spark platform, Spark Assistant, which is the world's first enterprise-ready, AI-powered voice assistant to further enhance our customers' meeting experience.

此外，我們還宣布了 Cisco Spark 平台上的最新創新 Spark Assistant，這是世界上第一個企業就緒的人工智能語音助手，可進一步提升客戶的會議體驗。

Our intended acquisition of BroadSoft will enhance our subscription and cloud-based business.

我們打算收購 BroadSoft 將增強我們的訂閱和基於雲的業務。

BroadSoft has 19 million subscribers in the growing cloud voice and contact center space and will enable Cisco to offer an even broader portfolio of collaboration solutions to our customers, on-premise and in the cloud.

BroadSoft 在不斷增長的雲語音和聯絡中心領域擁有 1900 萬用戶，這將使思科能夠為我們的客戶提供更廣泛的內部和雲端協作解決方案組合。

We expect this acquisition to accelerate the pace of innovation in our collaboration business, and we see many opportunities to extend the reach of the BroadSoft portfolio.

我們預計此次收購將加快我們協作業務的創新步伐，並且我們看到了許多擴展 BroadSoft 產品組合範圍的機會。

Moving to Security.

轉向安全。

With an expanding threat landscape, cybersecurity is the #1 priority for businesses worldwide and is at the heart of every company's digital strategy.

隨著威脅形勢的擴大，網絡安全成為全球企業的第一要務，也是每家公司數字戰略的核心。

In a multi-cloud world, as our customers' environments become increasingly distributed, security requirements only increase.

在多雲世界中，隨著我們客戶的環境變得越來越分散，安全要求只會增加。

At Cisco, security continues to be a strategic imperative and fundamental to everything we do.

在思科，安全仍然是我們所做的一切的戰略要務和基礎。

As customers adopt and advance intent-based networking, our end-to-end security is the foundation to keep our customers protected from advanced threats.

隨著客戶採用和推進基於意圖的網絡，我們的端到端安全是保護我們的客戶免受高級威脅的基礎。

This architecture, combined with the best-of-breed portfolio across the network, endpoint and cloud, enables our customers to reduce the time to detection as well as complexity and cost.

這種架構與跨網絡、端點和雲的同類最佳產品組合相結合，使我們的客戶能夠減少檢測時間以及復雜性和成本。

As a result, we believe Cisco is delivering the most effective and comprehensive security solutions in the market.

因此，我們相信思科正在提供市場上最有效、最全面的安全解決方案。

This differentiated strategy drove the 8% revenue growth in our Security portfolio, and we also saw continued momentum in our Security deferred revenue with 42% growth.

這種差異化戰略推動了我們安全產品組合的收入增長 8%，我們還看到我們的安全遞延收入繼續保持增長勢頭，增長了 42%。

To summarize, we delivered a solid quarter as we continue to execute well against our strategic priorities.

總而言之，由於我們繼續很好地執行我們的戰略重點，我們交付了一個穩定的季度。

I firmly believe that Cisco is well positioned to capture long-term growth opportunities ahead.

我堅信，思科已做好準備抓住未來的長期增長機會。

We remain focused on providing our customers with the most innovative portfolio of offerings in the industry, powered by intent-based capabilities and delivered through a range of consumption models, providing more flexibility than ever before.

我們仍然專注於為我們的客戶提供業內最具創新性的產品組合，這些產品組合由基於意圖的功能提供支持，並通過一系列消費模型提供，提供比以往任何時候都更大的靈活性。

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

現在我將把它交給凱利來詳細介紹我們的財務狀況。

Thanks, Chuck.

謝謝，查克。

I'll start with a summary of our financial results for the quarter followed by the Q2 outlook.

我將從本季度的財務業績摘要開始，然後是第二季度展望。

Total revenue was $12.1 billion, down 2%.

總收入為 121 億美元，下降 2%。

We continue to focus on driving margins and profitability with non-GAAP operating margin of 30.4%.

我們繼續專注於提高利潤率和盈利能力，非 GAAP 營業利潤率為 30.4%。

Non-GAAP EPS was $0.61, and operating cash flow was strong, growing 13% to $3.1 billion.

非美國通用會計準則每股收益為 0.61 美元，經營現金流強勁，增長 13% 至 31 億美元。

The rule of enterprise IT is dramatically changing with the move to an application-centric focus and adoption of hybrid cloud architectures, with customers increasingly seeing the value of integrated platforms over standalone products.

隨著轉向以應用程序為中心的重點和採用混合雲架構，企業 IT 規則正在發生巨大變化，客戶越來越多地看到集成平台相對於獨立產品的價值。

Cisco's intent-driven architecture with a focus on simplicity, automation and security allows enterprises to manage and govern the interactions of users, devices and applications across the environment.

思科專注於簡單性、自動化和安全性的以意圖為導向的架構使企業能夠管理和管理整個環境中用戶、設備和應用程序的交互。

Starting in Q1, to better reflect this shift, we've changed our product reporting categories, which are now Infrastructure Platforms, Applications, Security, Other Products and Services.

從第一季度開始，為了更好地反映這一轉變，我們更改了產品報告類別，現在是基礎設施平台、應用程序、安全性、其他產品和服務。

So let me give you a little bit more detail on our Q1 revenue.

因此，讓我向您詳細介紹一下我們第一季度的收入。

Total product revenue was down 3%.

產品總收入下降了 3%。

Infrastructure Platforms declined 4%, with the vast majority of the decline driven by routing products.

基礎設施平台下降了 4%，其中絕大部分下降是由路由產品推動的。

This was driven by continued weakness in Service Provider and a slowdown in enterprise routing.

這是由於服務提供商的持續疲軟和企業路由的放緩所推動的。

Our Switching revenue was down modestly, but we saw good momentum on orders and Campus Switching with the network intuitive launch.

我們的交換收入略有下降，但隨著網絡直觀啟動，我們在訂單和校園交換方面看到了良好的勢頭。

Additionally, we did see continued strong wireless revenue performance and solid uptake of our HyperFlex data center offering.

此外，我們確實看到了持續強勁的無線收入表現和我們 HyperFlex 數據中心產品的穩步採用。

Let's move on to Applications.

讓我們繼續應用程序。

To remind you, applications is made up our collaboration portfolio of Unified Communications, conferencing and TelePresence as well as our IoT and application software businesses such as AppDynamics and Jasper.

提醒您，應用程序由我們的統一通信、會議和 TelePresence 協作產品組合以及我們的物聯網和應用軟件業務（如 AppDynamics 和 Jasper）組成。

Applications increased 6% in total, with collaboration up modestly and AppDynamics driving most of the increase.

應用程序總量增加了 6%，其中協作適度增長，而 AppDynamics 推動了大部分增長。

We did see strong growth in deferred revenue of 18%.

我們確實看到遞延收入強勁增長 18%。

There was also a strong increase in the unbilled deferred, which is not on the balance sheet, bringing the combined total of deferred revenue plus unbilled deferred up 32%.

不在資產負債表上的未開票遞延收入也有強勁增長，使遞延收入加上未開票遞延收入的總和增長了 32%。

Security was up 8%, with strong performance in unified threat, advanced threat and web security, and deferred revenue grew 42% as we continue to drive more subscription-based software offers.

安全性增長了 8%，在統一威脅、高級威脅和 Web 安全方面表現強勁，隨著我們繼續推動更多基於訂閱的軟件產品，遞延收入增長了 42%。

Service revenue was up 1%, driven by growth in software and solution services.

受軟件和解決方案服務增長的推動，服務收入增長了 1%。

During the quarter, we introduced a new portfolio of subscription offers called Business Critical and High-value Services, powered by AI to predict future IT failures before they happen.

在本季度，我們推出了一個新的訂閱產品組合，稱為關鍵業務和高價值服務，由 AI 提供支持，可以在未來 IT 故障發生之前對其進行預測。

We drove good growth in deferred revenue, which was up 10% in total, with product up 16% and services up 5%.

我們推動了遞延收入的良好增長，總計增長了 10%，其中產品增長了 16%，服務增長了 5%。

Deferred product revenue from our recurring software and subscription offers was up 37% to $5.2 billion.

來自我們經常性軟件和訂閱優惠的遞延產品收入增長了 37%，達到 52 億美元。

We continue to transform our business, delivering more software offerings and driving more subscriptions in recurring revenue.

我們繼續轉變我們的業務，提供更多的軟件產品並推動更多的訂閱以產生經常性收入。

In Q1, we generated 32% of our total revenue from recurring offers, an increase of over 3 points from a year ago.

在第一季度，我們從經常性報價中獲得了總收入的 32%，比一年前增加了 3 個百分點。

Revenue from software subscriptions was 52% of our software revenue.

來自軟件訂閱的收入占我們軟件收入的 52%。

In terms of orders in Q1, total products orders grew 1%.

一季度訂單方面，產品訂單總量增長1%。

Looking at our geographies, Americas grew 1%, EMEA was up 2% and APJC grew 1%.

從我們的地理位置來看，美洲增長 1%，EMEA 增長 2%，APJC 增長 1%。

Total emerging markets declined 6%, with the BRICs plus Mexico also down 9%.

新興市場總量下降了 6%，金磚四國加上墨西哥也下降了 9%。

In our customer segments, enterprise declined 5%, commercial grew 12%, public sector was up 3% and service provider declined 6%.

在我們的客戶群中，企業下降了 5%，商業增長了 12%，公共部門增長了 3%，服務提供商下降了 6%。

From a non-GAAP profitability perspective, total Q1 growth margin was 63.7%, down 1.5 points; product gross margin was 63.0%, down 1.8 points; and service gross margin was 65.6%, down 0.6 points.

從非美國通用會計準則盈利能力來看，Q1 總增長率為 63.7%，下降 1.5 個百分點；產品毛利率為63.0%，同比下降1.8個百分點；服務毛利率為65.6%，下降0.6個百分點。

We continue to be negatively impacted by higher memory pricing, like we've discussed over the past several calls, which we expect to continue in the near term.

我們繼續受到更高內存定價的負面影響，就像我們在過去的幾次電話會議上討論過的那樣，我們預計這種情況會在短期內繼續下去。

Our operating margin was 30.4%, down 1.2 points.

我們的營業利潤率為 30.4%，下降了 1.2 個百分點。

When we look at the impact of acquisitions on our results year-over-year, there has been a 60 basis point positive impact on revenue, no impact on gross margin, a 3-point increase on non-GAAP operating expenses, all resulting in a negative 70 basis points impact on our non-GAAP operating margin rate and a negative $0.01 year-over-year impact on our GAAP EPS.

當我們查看收購對我們業績的同比影響時，對收入產生了 60 個基點的積極影響，對毛利率沒有影響，對非 GAAP 運營費用增加了 3 個百分點，所有這些都導致對我們的非 GAAP 營業利潤率產生負 70 個基點的影響，對我們的 GAAP 每股收益產生 0.01 美元的同比負影響。

In terms of the bottom line, our Q1 non-GAAP EPS was $0.61, while GAAP EPS was $0.48.

就底線而言，我們第一季度的非 GAAP 每股收益為 0.61 美元，而 GAAP 每股收益為 0.48 美元。

We ended Q1 with total cash, cash equivalents and investments of $71.6 billion, with $2.5 billion available in the U.S. Q1 operating cash flow had very strong growth of 13% to $3.1 billion.

第一季度末，我們的現金、現金等價物和投資總額為 716 億美元，其中美國可用資金為 25 億美元。第一季度運營現金流增長非常強勁，增長了 13%，達到 31 億美元。

And free cash flow was also very strong with growth of 19% to $2.9 billion.

自由現金流也非常強勁，增長 19% 至 29 億美元。

From a capital allocation perspective, we returned $3.1 billion to shareholders during the quarter that included $1.6 billion of share repurchases and $1.4 billion for our quarterly dividend.

從資本配置的角度來看，本季度我們向股東返還了 31 億美元，其中包括 16 億美元的股票回購和 14 億美元的季度股息。

To summarize, in Q1, we continued to make progress on our strategic growth priorities while maintaining rigorous discipline on profitability and cash generation.

總而言之，在第一季度，我們繼續在戰略增長重點方面取得進展，同時在盈利能力和現金生成方面保持嚴格的紀律。

We continue to prioritize our key investments to drive long-term profitable growth.

我們繼續優先考慮我們的關鍵投資，以推動長期盈利增長。

Let me reiterate our guidance for the second quarter of fiscal year '18.

讓我重申我們對 18 財年第二季度的指導。

This guidance includes the type of forward-looking information that Marilyn referred to earlier.

本指南包括 Marilyn 之前提到的前瞻性信息類型。

And also, as Chuck mentioned, we announced a definitive agreement to acquire BroadSoft.

而且，正如 Chuck 提到的，我們宣布了一項收購 BroadSoft 的最終協議。

The acquisition is expected to close after completion of the customary regulatory reviews, and therefore, it is not included in the guidance.

預計此次收購將在慣常監管審查完成後結束，因此未包含在指南中。

We expect revenue growth in the range of 1% to 3% year-over-year.

我們預計收入同比增長 1% 至 3%。

We anticipate the non-GAAP gross margin rate to be in the range of 62.5% to 63.5%.

我們預計非美國通用會計準則毛利率將在 62.5% 至 63.5% 的範圍內。

And the non-GAAP operating margin rate is expected to be in the range of 29.5% to 30.5%, and the non-GAAP tax provision rate is expected to be 22%.

非美國通用會計準則營業利潤率預計在 29.5% 至 30.5% 之間，非美國通用會計準則稅收撥備率預計為 22%。

Non-GAAP earnings per share is expected to range from $0.58 to $0.60.

非 GAAP 每股收益預計在 0.58 美元至 0.60 美元之間。

I'll now turn it back to Marilyn so we can move into Q&A.

現在我將把它轉回瑪麗蓮，這樣我們就可以進入問答環節。

Thanks, Kelly.

謝謝，凱利。

Mark, let's go ahead and open the line for questions.

馬克，讓我們開始提問吧。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Pierre Ferragu with Sanford C. Bernstein & Co.

我們的第一個問題來自 Pierre Ferragu 與 Sanford C. Bernstein & Co. 的合作。

Kelly, I can't help asking you an update on gross margin movements.

凱利，我忍不住要問你毛利率變動的最新情況。

So can you give us a bit of a sense of how big is memory prices in the 1.5 points gross margin declines that you've seen year-on-year?

那麼，您能否讓我們了解一下，在毛利率同比下降 1.5 個百分點的情況下，內存價格有多大？

And then sequentially, your guide for gross margin in -- for Q2 was slightly below what you've been guiding for Q1.

然後依次，您的毛利率指南 - 第二季度略低於您對第一季度的指導。

Is there still like incremental headwind coming from compound pricing hurting you from the Q1 to Q2?

從第一季度到第二季度，是否仍然存在來自複合定價的增量逆風對您造成傷害？

Yes.

是的。

Thanks, Pierre.

謝謝，皮埃爾。

Great question.

很好的問題。

Yes, so the vast majority of the impact on our gross margin is driven by memory.

是的，所以對我們毛利率的影響絕大部分是由內存驅動的。

It is basically 1.3 points of my product gross margin decline year-over-year.

基本上是我的產品毛利率同比下降1.3個百分點。

Everything else in our gross margin is basically in the normal ranges.

我們毛利率中的其他一切基本上都在正常範圍內。

So we expect that to continue.

所以我們希望這種情況繼續下去。

When you look at the guidance, we did bring it down 0.5 point to account for that because we are still seeing increases as we look forward -- moving forward.

當您查看指南時，我們確實將其降低了 0.5 個百分點以說明這一點，因為我們在展望未來時仍會看到增長——向前邁進。

But otherwise, we kind of see everything else in the normal range of things.

但除此之外，我們有點看到正常範圍內的其他一切。

Our next question comes from the line of Mark Moskowitz with Barclays Capital.

我們的下一個問題來自 Mark Moskowitz 與 Barclays Capital 的對話。

Chuck, you talked about 1,100 customers have already adopted the intuitive network.

Chuck，您談到了 1,100 名客戶已經採用了直觀網絡。

I just want to get a sense in terms of how does that underpin, longer term, the steady-state growth?

我只是想了解一下，從長遠來看，這如何支撐穩態增長？

You guys guided to about 1% to 3% growth for the current quarter.

你們指導本季度增長約 1% 至 3%。

But as more and more of those customers adopt and they move beyond the labs and move beyond the proof-of-concept, can we actually see your growth tick higher than 1% to 3% on a steady-state?

但隨著越來越多的客戶採用，他們超越了實驗室，超越了概念驗證，我們真的能看到你的增長在穩定狀態下高於 1% 到 3% 嗎？

Yes, Mark.

是的，馬克。

Thanks for the question.

謝謝你的問題。

So clearly, we're pleased with where we're going right now with this product portfolio.

很明顯，我們對這個產品組合現在的發展方向感到滿意。

We're pleased with the early feedback.

我們對早期反饋感到滿意。

I'll tell you that our sales teams, our partners and our customers, are very excited about the architecture that we've announced.

我會告訴你，我們的銷售團隊、我們的合作夥伴和我們的客戶對我們宣布的架構感到非常興奮。

It's still one quarter, so we have to get a little more time under our belt.

現在還有四分之一，所以我們必須多花點時間。

But what I will tell you is that when we look back at a transition like the 3850 years and years ago, it's very much in line.

但我要告訴你的是，當我們回顧像多年前的 3850 這樣的過渡時，它非常符合。

And I think that as more customers have the opportunity to test the automation and programmability and all those software features that they're testing right now, we would hope that the platform continues to accelerate.

而且我認為，隨著越來越多的客戶有機會測試自動化和可編程性以及他們現在正在測試的所有這些軟件功能，我們希望該平台繼續加速。

So one quarter down, but we feel good about where we are.

所以下降了四分之一，但我們對自己的處境感覺良好。

Our next question comes from Steven Milunovich with UBS Securities.

我們的下一個問題來自瑞銀證券的 Steven Milunovich。

To continue along those lines, Chuck, you talked a little bit about the software attach rates.

為了繼續沿著這些思路，查克，你談到了一些關於軟件附加率的問題。

Could you elaborate on that?

你能詳細說明一下嗎？

And particularly the advantage premium, which, I think, has the encryption capability and so forth?

特別是優勢溢價，我認為它具有加密功能等等？

Exactly what sort of mix are you seeing?

你到底看到什麼樣的混合？

And do you think that customers are going to be willing to pay up for the premium?

你認為客戶會願意支付溢價嗎？

Well, thanks, Steve.

好吧，謝謝，史蒂夫。

So what I said in the script is that a vast majority of our customers that are buying these platforms are opting for the advanced.

所以我在腳本中所說的是，我們購買這些平台的絕大多數客戶都選擇了高級平台。

And I would say that it's a vast majority.

我會說這是絕大多數。

We knew when we introduced a subscription on a switch that we needed to ensure that there was unique innovation that was available to our customers in order for them to see value in that.

我們知道，當我們在交換機上引入訂閱時，我們需要確保我們的客戶可以獲得獨特的創新，以便他們看到其中的價值。

We couldn't just simply shift the capabilities that they had gotten before in a perpetual model.

我們不能只是簡單地轉移他們之前在永久模型中獲得的能力。

We needed to drive new innovation.

我們需要推動新的創新。

So the anchors that are in that advanced subscription are the overall automation capability, which really gets at the OpEx of running these networks; and the second part is the Encrypted Traffic Analytics, where we can determine when there's malware inside encrypted traffic without decrypting it.

因此，高級訂閱中的錨點是整體自動化能力，它真正達到了運行這些網絡的運營成本；第二部分是加密流量分析，我們可以在不解密的情況下確定加密流量中何時存在惡意軟件。

And we think that those 2 are phenomenal incremental capabilities that our customers didn't have before, and I think that's why we're seeing such a high attach rate.

我們認為這兩個是我們的客戶以前沒有的驚人的增量功能，我認為這就是我們看到如此高的附加率的原因。

So we're very pleased with where we are on that as well.

因此，我們也對我們在這方面的進展感到非常滿意。

Our next question is from Vijay Bhagavath with Deutsche Bank securities.

我們的下一個問題來自德意志銀行證券公司的 Vijay Bhagavath。

Yes, my question for you, Chuck, and Kelly, please join in, is has anything changed in your sales motion in terms of data center switching?

是的，我的問題是，Chuck 和 Kelly，請加入，在數據中心切換方面，你們的銷售動議有什麼變化嗎？

And the reason I ask is we are starting to see this positive news flow, Alibaba cloud recently and, perhaps here in Microsoft as well.

我問的原因是我們開始看到這種積極的消息流，最近在阿里雲，也許在微軟這裡也是如此。

What has changed in your view, Chuck, in terms of the sales motion?

Chuck，您對銷售動議的看法發生了什麼變化？

Is it the clouds paying attention to things like software automation tools, security?

是雲在關注諸如軟件自動化工具、安全性之類的事情嗎？

Anything else?

還要別的嗎？

Or is it just a sales focus on cloud?

還是只是專注於雲的銷售？

Help us understand.

幫助我們理解。

Vijay, thanks for the question.

維杰，謝謝你的提問。

We've been talking about this for several calls now, about how we've reengaged with the large web scale providers back -- right after I became CEO, and these are long processes as they made major architectural decisions and they have franchises that you're trying to reenter.

我們已經打了好幾個電話討論這個問題，關於我們如何與大型網絡規模提供商重新合作——就在我成為 CEO 之後，這是一個漫長的過程，因為他們做出了重大的架構決策，而且他們擁有特許經營權，你正在嘗試重新進入。

But if you look at whether it's the announcements we've made with Microsoft a couple of quarters ago, the announcement we made with Google, you alluded to Alibaba, which there's a summary of that win on our website, if you want to go see that.

但是如果你看一下我們幾個季度前與微軟發布的公告，我們與穀歌發布的公告，你提到了阿里巴巴，我們的網站上有關於勝利的摘要，如果你想去看看那。

It's our first insertion there.

這是我們第一次在那裡插入。

And actually, it was before the large sales day they experienced, I think, last week.

實際上，我認為是在上週他們經歷的大型銷售日之前。

And so we continue to make progress, and we're continuing to execute on what I told you that we're executing on over the last 1.5 years, which is trying to go deeper.

因此，我們繼續取得進展，我們將繼續執行我告訴你的，我們在過去 1.5 年中正在執行的內容，這是試圖更深入。

I think the other thing that has become eminently clear is that these large web scale providers realize that it is going to be a multi-cloud world, and they definitely have come to the conclusion that the Edge is going to be mission-critical for our customers going forward.

我認為另一件已經非常清楚的事情是，這些大型網絡規模提供商意識到這將是一個多雲世界，他們肯定已經得出結論，Edge 將成為我們的關鍵任務客戶前進。

And as I think about that, we're a very natural -- we're the very natural partner for them to partner with as the network is the only common denominator across all these cloud environments all the way out to the edge of our enterprise customers' networks.

正如我所想的那樣，我們是一個非常自然的 - 我們是他們合作的非常自然的合作夥伴，因為網絡是所有這些雲環境一直到我們企業邊緣的唯一共同點客戶的網絡。

So we're just continuing to execute against what we set out 2 years ago, and we hope to continue to seek success.

所以我們只是繼續執行我們 2 年前製定的計劃，我們希望繼續尋求成功。

Our next question is from Paul Silverstein with Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Paul Silverstein。

Chuck and Kelly, recognize you guys are no longer breaking it out, but I'm hoping that you'll throw us a bone and put numbers on the data center switching revenue growth, given how important it is and how stronger growth market that's been.

Chuck 和 Kelly，認識到你們不再打破它，但我希望你們能給我們一個機會，並給出數據中心交換收入增長的數字，考慮到它的重要性以及增長市場的強勁程度.

And as part of that, Chuck, related to the previous question, can you give us any quantification of your progress with the Web 2.0 hyperscale customer segment, given the importance of that segment?

作為其中的一部分，查克，關於上一個問題，鑑於該細分市場的重要性，您能否量化您在 Web 2.0 超大規模客戶細分市場的進展？

Yes.

是的。

So Paul, yes, I mean, obviously, we're trying to go to new groupings.

所以保羅，是的，我的意思是，很明顯，我們正在嘗試進入新的分組。

But just to give you some color.

但只是為了給你一些顏色。

I mean, we continue to see the double-digit growth that we've been talking about of our ACI portfolio, continue in the strong double digits.

我的意思是，我們繼續看到我們一直在談論的 ACI 投資組合的兩位數增長，繼續保持兩位數的強勁增長。

And overall, data center was certainly up from a revenue perspective.

總的來說，從收入的角度來看，數據中心肯定是上升的。

And I think, Paul, from a perspective of the web scale, I mean, it's really just what I described.

我認為，保羅，從網絡規模的角度來看，我的意思是，這正是我所描述的。

We're in discussions with all of them.

我們正在與他們所有人進行討論。

We have made announcements with several of them, and we continue to execute against our strategy.

我們已經與其中幾家發布了公告，並將繼續執行我們的戰略。

And again, it's -- these are large franchises.

再一次，它是——這些是大型特許經營權。

There's 2 facets.

有2個方面。

And if you remember on a call back -- 2 or 3 calls back, I said that we're now expanding our discussions into 360-degree relationship discussions.

如果你記得在回電時——有 2 或 3 個回電，我說過我們現在正在將討論擴展到 360 度關係討論。

The Google announcement was reflective of that comment because not only are we working on their infrastructure, but we're also working significantly on this multi-cloud enablement, hybrid cloud enablement and helping bridge our customers -- their premise-based solutions, their Edge-based solutions, their cloud applications, their SaaS applications.

谷歌的公告反映了這一評論，因為我們不僅致力於他們的基礎設施，而且我們還在這種多雲支持、混合雲支持和幫助連接我們的客戶——他們基於前提的解決方案、他們的 Edge 方面做了大量工作基於解決方案、他們的雲應用程序、他們的 SaaS 應用程序。

And so we just -- we're continuing to execute on that right now.

所以我們只是 - 我們現在正在繼續執行。

Our next question is from Ittai Kidron with Oppenheimer & Co.

我們的下一個問題來自 Oppenheimer & Co. 的 Ittai Kidron。

Nice to see growth on the guide.

很高興看到指南上的增長。

I had a couple of things.

我有幾件事。

First of all, for you, Kelly, can you update us on the number of Cisco ONE customers?

首先，Kelly，您能否向我們更新 Cisco ONE 客戶的數量？

Just as a housekeeping.

就像家政一樣。

And then for you, Chuck, getting a little bit deeper into the infrastructure part of the business.

然後，查克，讓你更深入地了解業務的基礎設施部分。

Great color there on the product lines, but maybe you can help us fine tune a couple of things.

產品線上的顏色很棒，但也許你可以幫助我們微調一些東西。

One, on the hyperconverged, I think Kelly actually mentioned that you were off to a good start there.

第一，關於超融合，我認為凱利實際上提到你在那裡有了一個良好的開端。

But maybe you can help us understand where you stand on that product line, how good you feel about the platform, how stable it is.

但也許你可以幫助我們了解你在該產品線上的立場，你對平台的感覺如何，它有多穩定。

And then the weakness in the enterprise routing, I'm just trying to understand how much of it is a secular issue, meaning SD-WAN is starting to make an impact there versus an execution or seasonal element.

然後是企業路由的弱點，我只是想了解其中有多少是長期問題，這意味著 SD-WAN 開始在那裡產生影響，而不是執行或季節性因素。

Is this going to be another part of your business that's just going to be under pressure for a long time as routing has been?

這是否會成為您業務的另一部分，它會像路由一樣長期承受壓力？

Kelly, you want to...

凱莉，你想...

Yes, I'll just hit the Cisco ONE.

是的，我會點擊 Cisco ONE。

Cisco ONE continues to have great momentum.

思科 ONE 繼續保持強勁勢頭。

We're over 22,000 customers at this point with that.

目前我們有超過 22,000 名客戶。

So still great momentum.

所以勢頭還是很大的。

Yes, Ittai, just -- so thanks for your comments, by the way.

是的，Ittai，順便說一句，謝謝你的意見。

On the hyperconverged offer or HyperFlex offer, I would tell you that it has continued to probably be at the high-end of my expectations.

關於超融合產品或 HyperFlex 產品，我會告訴你它可能繼續處於我預期的高端。

I'd say a couple of quarters ago, it began to exceed what I was expecting, so I changed my expectations.

我會說幾個季度前，它開始超出我的預期，所以我改變了我的預期。

And it's -- but they're doing a great job.

它是 - 但他們做得很好。

The teams are doing well.

球隊表現不錯。

I think we know the use cases where it's very competitive, and I think that it continues to -- they continue to operate at the high end of what I expected from them.

我認為我們知道它非常有競爭力的用例，而且我認為它會繼續 - 他們繼續在我對他們的期望的高端運行。

So we're very pleased with that.

所以我們對此非常滿意。

On the question relative to SD-WAN, I think you nailed it, right.

關於與 SD-WAN 相關的問題，我認為您已經搞定了，對吧。

The -- our customers, and we've talked about this for a couple of calls, our customers have been trying to assess what this SD-WAN architectural transition looks like.

我們的客戶，我們已經通過幾次電話討論了這個問題，我們的客戶一直在嘗試評估這種 SD-WAN 架構過渡的樣子。

And I think that after we acquired Viptela, we have now, at our sales meeting, we provided tremendous clarity to our sales organization and our partner community at the Partner Summit about what our strategy is.

而且我認為，在我們收購 Viptela 之後，我們現在在我們的銷售會議上，在合作夥伴峰會上向我們的銷售組織和我們的合作夥伴社區提供了關於我們的戰略的非常清晰的信息。

We've now taken customers through the road maps of what they can expect and then -- and how to position the different alternatives that we have and how those portfolios are going to come together over the next 12 to 18 months.

我們現在已經向客戶介紹了他們可以期待什麼的路線圖，然後 - 以及如何定位我們擁有的不同替代方案以及這些投資組合將如何在未來 12 到 18 個月內整合在一起。

So I think that it is a by-product of the SD-WAN discussion.

所以我認為這是 SD-WAN 討論的副產品。

And I would expect that we'll start to see customers move somewhat this quarter.

我預計本季度我們將開始看到客戶有所變化。

And then in the second half of the year, I think our customers will continue to begin to deploy some of these solutions.

然後在今年下半年，我認為我們的客戶將繼續開始部署其中一些解決方案。

So again, happy with where we are relative to the positioning of the different platforms.

因此，再次對我們相對於不同平台定位的位置感到滿意。

Our next question is from George Notter with Jefferies.

我們的下一個問題來自 Jefferies 的 George Notter。

I guess, I was curious about the revenue headwind associated with the move to a subscription model, including Cisco ONE.

我想，我很好奇與轉向訂閱模式（包括 Cisco ONE）相關的收入逆風。

Can you remind us what you wound up seeing in terms of the headwind in the October quarter, and then also, what you're assuming for January?

你能提醒我們你在 10 月季度的逆風中看到了什麼，然後你對 1 月的假設是什麼？

Yes, George, thanks for the question.

是的，喬治，謝謝你的提問。

Yes, right now, we're still seeing it around that 2% range.

是的，現在，我們仍然看到它在 2% 的範圍內。

We expect the headwind to grow once the -- once we continue to grow the intuitive network that has a subscription.

我們預計一旦我們繼續發展具有訂閱的直觀網絡，逆風就會增長。

As that grows, that'll grow.

隨著它的增長，它會增長。

But right now, it's in that 2% range, 1.5% to 2% range.

但現在，它在 2% 的範圍內，在 1.5% 到 2% 的範圍內。

And we expect that to be roughly in that range next quarter as well.

我們預計下個季度也將大致在該範圍內。

Our next question is from Tal Liani with Bank of America Securities Merrill Lynch.

我們的下一個問題來自美國銀行證券美林的 Tal Liani。

My question is almost a follow-up to the previous question.

我的問題幾乎是上一個問題的後續問題。

Can you elaborate?

你能詳細說明一下嗎？

I know you started at the beginning of the year to do the Subscription for Switching.

我知道你從年初開始做 Subscription for Switching。

Can you elaborate on, first of all, the experience you've had so far, cases where customers took the subscription versus didn't take?

首先，您能否詳細說明您迄今為止的經驗，以及客戶訂閱與未訂閱的情況？

What does it include?

它包括什麼？

Just elaborate on the subscription and kind of the profile of it and also the take rate so far and whether you need to make any changes to it in order to improve take rates, et cetera.

只需詳細說明訂閱及其概況的種類，以及到目前為止的採用率，以及您是否需要對其進行任何更改以提高采用率等。

I'm just trying to understand the implications for future years.

我只是想了解對未來幾年的影響。

Yes.

是的。

So Tal, thanks for the question.

塔爾，謝謝你的提問。

Let me break it down.

讓我分解一下。

So the advanced subscription today is primarily being sold on the new Catalyst 9000, even though it's backwards compatible with a couple of years worth of our, I don't know, 2, 3 years' worth of products that we've shipped in wireless and in routing, et cetera.

因此，今天的高級訂閱主要在新的 Catalyst 9000 上銷售，儘管它向後兼容了我們幾年的價值，我不知道，2、3 年的無線產品價值在路由中，等等。

But what the customers are doing right now is they're basically becoming accustomed to the platform.

但客戶現在正在做的是，他們基本上已經習慣了這個平台。

They're testing the platform before they make an investment on any sort of backwards compatibility is what I would tell you.

在他們對任何類型的向後兼容性進行投資之前，他們正在測試平台，這就是我要告訴你的。

I don't think we need to make any changes right now because the attach rate of the most advanced subscription offer is at the very high end of what I would've expected.

我認為我們現在不需要進行任何更改，因為最高級訂閱優惠的附加率處於我預期的非常高的水平。

So I think we're very pleased with where it is right now.

所以我認為我們對它現在的位置非常滿意。

And assuming we execute on the value and the innovation that our customers continue to gain from that, then I think that we'll begin to see them then buy the subscriptions on some of their installed base as well.

假設我們執行客戶繼續從中獲得的價值和創新，那麼我認為我們將開始看到他們，然後也會在他們的一些已安裝基礎上購買訂閱。

That would be our intent.

那將是我們的意圖。

And just to add to that, I mean, just to be clear, 100% of the switches we're selling come with a subscription.

除此之外，我的意思是，要清楚一點，我們銷售的 100% 的交換機都需要訂閱。

It's just a difference on what additional features and security are added between the Advantage and the Essentials.

這只是 Advantage 和 Essentials 之間添加了哪些附加功能和安全性的區別。

So 100% of the new switches are sold with a subscription, and that's going well.

所以 100% 的新交換機都是通過訂閱銷售的，而且進展順利。

Your next question is from Mitchell Steves with RBC Capital Markets.

你的下一個問題來自 RBC 資本市場的 Mitchell Steves。

I wanted to focus on the Security angle.

我想專注於安全角度。

So despite having pretty difficult comparisons last year, still up 8%, so can you maybe provide some color what's going well there?

因此，儘管去年進行了相當困難的比較，但仍然增長了 8%，那麼你能否提供一些顏色說明那裡進展順利？

And then secondly, any sort of growth rates or rough numbers with the advanced threat versus web security growth rates?

其次，高級威脅與 Web 安全增長率的增長率或粗略數字？

Thanks, Mitch.

謝謝，米奇。

So I think that the thing that is resonating with the customer is if you look at the environments that they're all beginning to operate in, they're operating in an environment where they have multiple SaaS providers, multiple cloud providers.

所以我認為與客戶產生共鳴的是，如果你看看他們都開始在其中運行的環境，他們在一個擁有多個 SaaS 提供商、多個雲提供商的環境中運行。

They've got their private data centers with applications running.

他們擁有運行應用程序的私有數據中心。

They've got their branch networks.

他們有自己的分支網絡。

They've got now Edge connectivity with IoT coming in.

他們現在已經有了邊緣連接和物聯網。

And so the robustness of an architecture that they have to have that protects across the network, across the endpoint, across the cloud is really what, I think, is differentiating it.

因此，我認為，他們必須擁有的跨網絡、跨端點、跨雲保護的架構的穩健性才是真正與眾不同的地方。

And we've also -- we've been on a multi-year journey of selling software and subscriptions against the threat intelligence and the malware intelligence that we have, and I think that's what's continuing to pay off.

而且我們也 - 我們一直在銷售針對我們擁有的威脅情報和惡意軟件情報的軟件和訂閱的多年旅程，我認為這將繼續得到回報。

So I think it's resonating with our customers, and it's an architecture that we can continue to innovate on.

所以我認為它引起了我們客戶的共鳴，這是一個我們可以繼續創新的架構。

We continue to expand on.

我們繼續展開。

And Kelly, any comments on the...

凱利，對...的任何評論

Yes.

是的。

I mean, I'd just say advanced threat and unified threat as well as even web security, they're all up big double digits.

我的意思是，我只想說高級威脅和統一威脅，甚至網絡安全，它們都增長了兩位數。

I mean, just really strong growth.

我的意思是，增長非常強勁。

Next question is from James Faucette with Morgan Stanley Investment Research.

下一個問題來自摩根士丹利投資研究部的 James Faucette。

I wanted to ask a question on capital structure.

我想問一個關於資本結構的問題。

Can you give us an idea of what your preference is and priorities will be in capital structure in terms of buybacks and acquisitions, et cetera, if the proposed new tax changes pass versus if that change in tax law gets derailed?

如果擬議的新稅收變化獲得通過，或者稅法變化是否脫軌，您能否告訴我們您在回購和收購等方面的偏好和優先事項？

I'm particularly curious as to how you're thinking about the pacing of acquisitions versus buybacks, et cetera.

我特別好奇你是如何考慮收購與回購等的節奏的。

Yes, I'll take that one.

是的，我會拿那個。

What I'd say is in terms of acquisitions, the tax policy isn't impacting us either way because we are lucky to have a great cash flow and access to capital.

我要說的是，就收購而言，稅收政策不會以任何方式影響我們，因為我們很幸運擁有大量現金流和獲得資本的機會。

So it hasn't been stopping us from anything from an acquisition perspective, and it won't.

因此，從收購的角度來看，它並沒有阻止我們做任何事情，也不會。

So that will continue.

所以這將繼續。

I would say we're definitely encouraged by the progress that's going on in the tax reform.

我想說的是，稅制改革取得的進展絕對讓我們感到鼓舞。

So like we said in the past, when that happens and if we get a repatriation, which most plans currently have, we're going to continue, like we have, growing our dividend with our earnings growth.

因此，就像我們過去所說的那樣，當這種情況發生時，如果我們得到目前大多數計劃的資金匯回，我們將繼續，就像我們所做的那樣，隨著收益的增長而增加股息。

And where we have opportunity is really to get much more aggressive than we have been on the share buyback.

我們有機會的地方真的是比我們在股票回購方面更加積極。

And of course, we want to make sure we continue to have enough firepower to continue to able to do the right acquisitions to help us position Cisco right for the long term.

當然，我們希望確保我們繼續擁有足夠的火力來繼續進行正確的收購，以幫助我們長期定位思科。

Our next question is from Simon Leopold with Raymond James & Associates.

我們的下一個問題來自 Simon Leopold 和 Raymond James & Associates。

I wanted to see if you could give us a little bit more insight into what you would attribute the outlook to in terms of this is the first quarter with year-over-year growth we've seen in quite some time.

我想看看你是否可以讓我們更深入地了解你將前景歸因於什麼，因為這是我們在相當長一段時間內看到的第一季度同比增長。

So I'm wondering, if we attribute it to an easy comparison or lapping the buildup of deferred revenue or some specific product cycles, if you could help us assess the key elements bringing you back to year-over-year growth.

所以我想知道，如果我們將其歸因於簡單的比較或重疊遞延收入或某些特定產品週期的積累，您是否可以幫助我們評估使您恢復同比增長的關鍵因素。

Kelly, you want to...

凱莉，你想...

Yes, sure.

是的，當然。

I mean, I'll give you some color.

我的意思是，我會給你一些顏色。

I'd say, it's a combination of things, right?

我會說，這是多種因素的結合，對吧？

I mean, if I go to the amount of revenue coming off the balance sheet from the progress we've been steadily making on growing our software and subscriptions, it's now up to 12% of our product revenue is now coming from recurring offers and off the balance sheet.

我的意思是，如果我從我們在軟件和訂閱增長方面穩步取得的進展中得出資產負債表上的收入金額，現在高達 12% 的產品收入現在來自經常性報價和關閉資產負債表。

So that's helping.

所以這很有幫助。

I would say also, the launch that we had on the intuitive network and the excitement around the reinvention of the core is having an impact.

我還要說的是，我們在直觀網絡上的發布以及圍繞核心重塑的興奮正在產生影響。

So we're encouraged.

所以我們很受鼓舞。

And you heard me mention, we're seeing positive demand on [man or wan] Campus Switching overall, which is great, and that has a big impact because it's one of the biggest pieces of our portfolio.

你聽到我提到，我們看到對 [man or wan] Campus Switching 整體的積極需求，這很好，而且影響很大，因為它是我們產品組合中最大的部分之一。

So that, combined with pretty good orders like we had in Q1, gives us a very good backlog position that allows us to have a good view into what the next quarter looks like.

因此，結合我們在第一季度獲得的相當不錯的訂單，為我們提供了一個非常好的積壓位置，使我們能夠很好地了解下一季度的情況。

So I'd say, overall, the overall strategy, what we've been executing and talking about for the last couple of years here is we've been making progress, and all of this is benefiting us in the outlook.

所以我想說，總的來說，總體戰略，我們過去幾年一直在執行和談論的是我們一直在取得進展，所有這些都對我們的前景有利。

James, just to clarify one point or just to add to it, actually, when Kelly says 12% of our product revenue is coming from recurring offers, just to put that in perspective, when I became CEO, it was 6%.

詹姆斯，我只是想澄清一點或補充一點，實際上，當凱利說我們產品收入的 12% 來自經常性報價時，只是為了正確看待這一點，當我成為首席執行官時，這一比例是 6%。

So we've effectively doubled that.

因此，我們實際上已經將其翻了一番。

And I think that's certainly helpful.

我認為這肯定有幫助。

And just we have seen -- we're seeing positive feedback on the launch.

就我們所見——我們看到了對發布的積極反饋。

So I'm sorry that was Simon.

所以我很抱歉那是西蒙。

I apologize, Simon.

我道歉，西蒙。

Our next question is from Jeffrey Kvaal with Nomura Securities International.

我們的下一個問題來自野村證券國際的 Jeffrey Kvaal。

Jeff?

傑夫？

Oh, sorry.

哦對不起。

I'm on mute.

我靜音了

Pardon me.

對不起。

Yes, I was hoping to ask about competition in the Enterprise Switching space.

是的，我想問的是企業交換領域的競爭。

And we've seen a little bit more out of Huawei perhaps, not in the U.S., of course, but international.

我們或許從華為身上看到了更多，當然不是在美國，而是在國際上。

I'm wondering if you could put some of that color into context for us, both from them and also from some of your traditional rivals.

我想知道您是否可以從他們以及您的一些傳統競爭對手那里為我們把一些顏色融入到我們的背景中。

In the enterprise switches?

在企業交換機？

Yes, enterprise.

是的，企業。

Yes.

是的。

So thanks for the question, Jeff.

謝謝你的問題，傑夫。

I think that if you look at some of the performance we saw around the world, to your point, in Europe and Asia, we've talked about Huawei's activity over the last couple of quarters.

我認為，如果你看看我們在世界各地看到的一些表現，就你的觀點而言，在歐洲和亞洲，我們已經談到了華為在過去幾個季度的活動。

I would say that our teams have been very focused on it.

我想說我們的團隊一直非常專注於此。

I think that the intuitive network launch that we did in June really changes the discussion.

我認為我們在 6 月份進行的直觀網絡發布確實改變了討論。

And where we compete with competitors who their value prop is upfront cost of the hardware, I think we're changing the discussion, because if you look at the cost of operating this infrastructure over a 5-year period, it's probably 10x the cost of the upfront hardware.

在我們與競爭對手競爭的地方，他們的價值支柱是硬件的前期成本，我認為我們正在改變討論，因為如果你看看在 5 年期間運營這個基礎設施的成本，它可能是成本的 10 倍前期硬件。

So going and helping our customers really reduced that is a value proposition that helps us change the discussion relative to the competition.

因此，去幫助我們的客戶真正減少這是一個價值主張，可以幫助我們改變與競爭相關的討論。

So they continue to be very tough, but we think that competing on the price of the box upfront is something that we can shift over the next couple of years.

所以他們仍然非常強硬，但我們認為在未來幾年我們可以改變在盒子價格上的競爭。

Our next question is from Erik Suppiger with JMP Securities.

我們的下一個問題來自 JMP Securities 的 Erik Suppiger。

It was good to see Security picking up.

很高興看到安全性有所提高。

What are your expectations for Security growth?

您對安全增長有何期望？

In the past, you've talked about driving double-digit growth on the Security side.

過去，您曾談到在安全方面推動兩位數的增長。

Is that still a goal?

這仍然是一個目標嗎？

And where do you think you are in terms of getting there?

你認為你在到達那裡方面的進展如何？

Yes, Erik, thanks for that.

是的，埃里克，謝謝你。

So at our financial analyst conference this summer, we articulated a long-range guide in line with what you just described.

因此，在今年夏天的金融分析師會議上，我們根據您剛才的描述制定了一份長期指南。

We're going to have quarters that are going to be -- that are going to vary from that.

我們將有一些季度 - 將會有所不同。

But that's definitely our long-term objective.

但這絕對是我們的長期目標。

And I think our teams are focused now on what is it we need to do for the next wave of this architecture.

我認為我們的團隊現在專注於我們需要為下一波架構做些什麼。

Once we have this architecture built, where we can actually defend and apply real-time defense against known threats, we can learn about a threat through malware and e-mail, and we can protect against it in the network and the cloud and the devices at the endpoint all at the same time.

一旦我們構建了這個架構，我們就可以實際防禦和應用實時防禦來對抗已知威脅，我們可以通過惡意軟件和電子郵件了解威脅，我們可以在網絡、雲和設備中防禦它同時在端點。

So the teams are working hard to continue to drive innovation there, but also looking at what other elements can we fit into this architecture over time.

因此，團隊正在努力工作以繼續推動那裡的創新，同時也在研究隨著時間的推移我們可以將哪些其他元素融入到這個架構中。

And I think that's how we think about the long-term guide.

我認為這就是我們對長期指南的看法。

Our last question comes from the line of Jim Suva with Citigroup Global Markets.

我們的最後一個問題來自花旗集團全球市場部的 Jim Suva。

It's Jim Suva from Citi.

我是 Citi 的 Jim Suva。

On your guidance of up 1 to 3, as talked about earlier, it's the first time you guys have seen year-over-year revenue growth for quite a long time.

如前所述，根據您對 1 到 3 的指導，這是你們在很長一段時間內第一次看到收入同比增長。

Kelly and Chuck, you've mentioned strength in orders and also the subscription model taking traction.

凱利和查克，你們提到了訂單量的增加以及訂閱模式的吸引力。

Are we now at a point where a shift to subscription is no longer dragging down year-over-year comps?

我們現在是否處於向訂閱的轉變不再拖累同比收入的地步？

Or that still a bit of a challenge in the orders that Chuck mentioned are just so much stronger?

還是 Chuck 提到的命令如此強大，這仍然是一個挑戰？

And Chuck, any end market areas we should think about for that order strength?

查克，我們應該考慮哪些終端市場領域來提高訂單強度？

Yes, I'll take the first part.

是的，我會參加第一部分。

I'd say no.

我會說不。

We're still, I'd say, growing the base of the offers faster and putting it on the balance sheet than it's coming off.

我想說的是，我們仍然在更快地擴大報價基礎並將其放在資產負債表上，而不是它正在消失。

But again, both the year-over-year increase of the balance of $5.2 billion was up 37%, and my income statement was up 37% as well.

但同樣，52 億美元的餘額同比增長了 37%，我的損益表也增長了 37%。

But I'm still putting more and more offers.

但我仍然提供越來越多的報價。

And as we get scale through the core networking, not just on Switching but the whole DNA Center, I think that'll continue to add.

隨著我們通過核心網絡獲得規模，不僅在交換上，而且在整個 DNA 中心，我認為這將繼續增加。

So it's still going to be a headwind.

所以它仍然會是一個逆風。

And as I said before, this 1.5 to 2 points will move to more like a 2 to 3 points in the upcoming years as we get more scale there.

正如我之前所說，隨著我們在未來幾年的規模擴大，這 1.5 到 2 分將更接近 2 到 3 分。

So more to come, but again, we're benefiting from -- we're starting to see the benefit of just having more stability and being able to have a better line of sight and less massive fluctuation by having that.

未來還會有更多，但我們再次從中受益——我們開始看到擁有更高穩定性的好處，並且能夠擁有更好的視線和更小的波動。

And Jim, just a market segment perspective that it's probably pretty clear.

吉姆，只是市場細分的觀點，它可能非常清楚。

We saw service provider pretty much the same as it has been for some period of time.

我們看到的服務提供商與一段時間以來幾乎沒有什麼不同。

Our largest enterprise customers, which the way we define it, is really just an organizational segment that we have, we did see -- we saw negative mid-single digits there, which you saw on the slides.

我們最大的企業客戶，按照我們的定義方式，實際上只是我們擁有的一個組織部分，我們確實看到了——我們在那裡看到了負的中個位數，你在幻燈片上看到了。

In our commercial business, we saw 12% growth on a global basis, and it was double digits in every geography, which is always good to see.

在我們的商業業務中，我們在全球範圍內實現了 12% 的增長，並且在每個地區都實現了兩位數的增長，這總是令人高興的。

Our enterprise customers, what I would tell you is that they are -- they're some of the biggest customers who take the longest amount of time to evaluate new platforms and new capabilities like the network intuitive as well as this whole SD-WAN discussion.

我們的企業客戶，我要告訴你的是，他們是一些最大的客戶，他們花費最長的時間來評估新平台和新功能，例如網絡直觀性以及整個 SD-WAN 討論.

So we're actively in those discussions with the enterprise customers.

因此，我們正在積極與企業客戶進行這些討論。

And our commercial customers tend to just move more quickly than others.

我們的商業客戶往往比其他客戶行動得更快。

And then finally, on the Public Sector side, which we didn't talk about a lot, I think, the big call-out there, I would say, is that 2 quarters ago, we talked about the pressure in the Federal, business.

最後，在公共部門方面，我們沒有談論太多，我想，我想說的是，兩個季度前，我們談到了聯邦的壓力，商業.

Last quarter, we said we saw it improving.

上個季度，我們說我們看到它有所改善。

And what I would tell you is that in this quarter, we saw the year end that was -- that seemed fairly normal.

我要告訴你的是，在本季度，我們看到了年底——這似乎很正常。

While they still have a lot of leadership roles that haven't been filled and we still have the impending December debt ceiling issue, overall, for this quarter, we saw the federal business pretty much back to what we expected as we closed the quarter.

雖然他們仍有許多領導角色尚未填補，而且我們仍然面臨即將到來的 12 月債務上限問題，但總體而言，在本季度，我們看到聯邦業務幾乎回到了我們在本季度結束時的預期。

So that's probably commentary I can provide on the market segments.

所以這可能是我可以在細分市場上提供的評論。

Okay.

好的。

I think we are...

我想我們是...

Well, that's it, isn't it?

好吧，就是這樣，不是嗎？

Yes.

是的。

We're going to wrap up.

我們要結束了。

Okay.

好的。

I'll wrap it.

我會把它包起來。

Thanks, everyone, again for joining us today.

再次感謝大家今天加入我們。

I want to -- I just want to wrap with a few points.

我想——我只想總結幾點。

First off, we are committed to executing on this vision to deliver a highly secure, intelligent platform for our customers' digital business.

首先，我們致力於實現這一願景，為客戶的數字業務提供高度安全、智能的平台。

And we are laser focused on 5 key elements of that strategy to enable our customer success and drive profitable growth for us and shareholder value as well.

我們非常專注於該戰略的 5 個關鍵要素，以幫助我們的客戶取得成功並推動我們和股東價值的盈利增長。

First, we are fundamentally reinventing networking with our intent-based networking platform.

首先，我們正在使用基於意圖的網絡平台從根本上重塑網絡。

We intend to further accelerate our leadership here, extending intuitive technologies across the broad portfolio that we have while increasing application visibility and automation.

我們打算進一步加強我們在這方面的領導地位，將直觀的技術擴展到我們擁有的廣泛產品組合中，同時提高應用程序的可見性和自動化。

Secondly, security is fundamental to everything we do.

其次，安全是我們所做一切的基礎。

You can't build a next-generation digital business without a comprehensive security strategy across endpoints, network and the cloud.

如果沒有跨端點、網絡和雲的全面安全策略，您就無法構建下一代數字業務。

Third, it is very clear that it's a multi-cloud world, and Cisco is in a unique position to help our customers navigate this by expanding our multi-cloud portfolio and extending our web scale partnerships with strategic cloud providers.

第三，很明顯，這是一個多雲世界，思科處於獨特的位置，可以通過擴展我們的多雲產品組合併擴展我們與戰略云提供商的網絡規模合作夥伴關係來幫助我們的客戶駕馭這一局面。

Our Google partnership's an example of the work we are doing with all of the large web scale providers.

我們與 Google 的合作夥伴關係是我們與所有大型網絡規模提供商合作的一個例子。

Fourth, we're unlocking the power of the data with advanced analytics such as our solutions with AppDynamics, Encrypted Traffic Analytics and TELUS threat intelligence.

第四，我們正在通過高級分析釋放數據的力量，例如我們的 AppDynamics 解決方案、加密流量分析和 TELUS 威脅情報。

We are also embedding AI and machine learning technologies across the breadth of our portfolio.

我們還在我們的產品組合中嵌入了人工智能和機器學習技術。

And lastly, we will continue to deliver a more enhanced customer and employee experience through our broad collaboration portfolio, including our intent to acquire BroadSoft.

最後，我們將繼續通過我們廣泛的合作組合，包括我們收購 BroadSoft 的意圖，提供更強大的客戶和員工體驗。

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

瑪麗蓮，我會把它還給你。

Thanks, Chuck.

謝謝，查克。

Cisco's next quarterly earnings conference call, which will reflect our fiscal 2018 second quarter results, will be on Wednesday, February 14, 2018 at 1:30 p.m.

思科下一次季度收益電話會議將於 2018 年 2 月 14 日星期三下午 1:30 召開，這將反映我們 2018 財年第二季度的業績。

Pacific time, 4:30 p.m.

太平洋時間下午 4:30

Eastern time.

東部時間。

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.

再次，我想提醒聽眾，根據 FD 法規，思科的政策是不評論其本季度的財務指導，除非通過明確的公開披露來完成。

We now plan to close the call.

我們現在計劃結束通話。

If you have any further questions, please feel free to contact the Cisco Investor Relations Department, and we thank you very much for joining the call today.

如果您有任何其他問題，請隨時聯繫思科投資者關係部，我們非常感謝您今天加入電話會議。

Thank you for participating on today's conference call.

感謝您參加今天的電話會議。

If you would like to listen to the call in its entirety, you may call (866) 421-0447.

如果您想完整收聽電話，可以致電 (866) 421-0447。

For participants dialing from outside the U.S, please dial (203) 369-0803.

對於來自美國境外的參與者，請撥打 (203) 369-0803。

This concludes today's call.

今天的電話會議到此結束。

You may disconnect at this time.

此時您可以斷開連接。