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. At the request of Cisco, 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 2018 財年第一季財務業績電話會議。應思科的要求，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, Mark. Welcome, everyone, to Cisco's First Quarter Fiscal 2018 Quarterly Earnings Conference Call. This is Marilyn Mora, Head of Investor Relations, and I'm joined by Chuck Robbins, our CEO; and Kelly Kramer, our CFO.

謝謝，馬克。歡迎大家參加思科 2018 財年第一季季度財報電話會議。我是投資者關係主管瑪麗蓮·莫拉 (Marilyn Mora)，與我一起發言的還有我們的首席執行官查克·羅賓斯 (Chuck Robbins)；以及我們的首席財務官凱利·克萊默 (Kelly Kramer)。

By now, you should have seen our earnings press release. A corresponding webcast with slides, including supplemental information, will be made available on our website in the Investor Relations section following the call. 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.

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，我們將在網站的「投資者關係」部分提供相應的網路直播和幻燈片，其中包括補充資訊。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。

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

提醒一下，從第一季開始，我們開始報告以下類別的收入：基礎設施平台、應用程式、安全性、其他產品和服務。正如我們在第四季度收益電話會議和 10 月 23 日的新聞稿中所討論的那樣，這一變化使我們的產品類別更好地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. So this change only impacts how we report revenue by product category. We've included quarterly reclassified revenue amounts for the last 3 fiscal years on our website. Click on the Financial Reporting section of the website to access these documents.

我們的細分市場將繼續以地理為基礎，包括美洲、歐洲、中東和非洲地區 (EMEA) 和亞太及日本地區 (APJC)。因此，這項變更只會影響我們按產品類別報告收入的方式。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。點擊網站的財務報告部分即可存取這些文件。

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results 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 made on a year-over-year basis unless stated otherwise.

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都將以同比進行。

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. 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.

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 表格報告，該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.

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，除非透過明確的公開揭露，否則思科不會對本季的財務指引發表評論。

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

說完這些，我就把麥克風交給查克。

Thank you, Marilyn, and good afternoon, everyone. Our results this quarter demonstrate the continued progress we're making on our strategic priorities.

謝謝你，瑪麗蓮，大家午安。本季的業績顯示我們在策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. 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. The progress we've made resulted in all 3 of our geographic regions returning to orders growth during Q1.

第一季度，我們取得了穩健的業績，營收達 121 億美元，非公認會計準則每股收益達 0.61 美元。我們看到新的基於意圖的網路解決方案具有巨大的吸引力，它加速了我們整個產品組合的創新，並為我們的客戶提供了更廣泛的新消費選擇，從而使我們的軟體和訂閱收入強勁增長。我們的進展使得我們所有 3 個地理區域在第一季都恢復了訂單成長。

Cisco has always been about connecting people, information and machines at scale. Today, the network is becoming more pervasive and critical to business success as billions of new connections are added. We expect these new connections will become increasingly automated, intelligent and secure, delivering unprecedented insights and intelligence to our customers.

思科一直致力於大規模連結人、資訊和機器。如今，隨著數十億個新連結的增加，網路變得越來越普及，對企業的成功也越來越重要。我們預計這些新的連接將變得越來越自動化、智慧和安全，為我們的客戶提供前所未有的洞察力和智慧。

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. This extends to the network, next-generation data center architectures, advanced IoT applications, end-to-end analytics and our collaboration technologies. Our vision is resonating with customers and partners around the world as we help them build more secure, intelligent platforms for their digital businesses.

思科的願景是在我們的產品組合中提供高度安全、直覺的技術，旨在不斷學習、適應和保護，以更快的速度和靈活性推動業務成果。這延伸到網路、下一代資料中心架構、先進的物聯網應用、端到端分析和我們的協作技術。我們的願景與世界各地的客戶和合作夥伴產生共鳴，我們幫助他們為其數位業務建立更安全、更智慧的平台。

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

如今，我們的大多數客戶都在複雜的多雲環境中運營，思科完全有能力為他們提供網路功能、企業級安全性和支持，以及雲端規模、靈活性和經濟性。我們與 Google 的新合作關係就是一個很好的例子。在過去的幾個月裡，我們的工程團隊一直密切合作，共同開發一種新的混合雲解決方案，旨在使應用程式和服務能夠在本地環境和 Google 雲端平台上部署、管理和保護，為企業帶來最好的雲端服務。

This partnership is an example of the work we are doing with all of the large web scale providers. We are also investing to develop and acquire new technologies to extend our multi-cloud portfolio. This includes ACI Anywhere, which we announced this quarter; and acquisitions such as CliQr, OpenDNS, CloudLock, AppDynamics and Viptela.

此次合作是我們與所有大型網路供應商合作的一個例子。我們也投資開發和收購新技術來擴展我們的多雲產品組合。其中包括我們本季宣布的 ACI Anywhere；以及 CliQr、OpenDNS、CloudLock、AppDynamics 和 Viptela 等收購。

Now I'd like to cover some key business highlights in our new product reporting categories. First, let's start with Infrastructure Platforms. Our launch of the network intuitive in June is an example of the investment and innovation we're driving in our core business. These new intent-based networking capabilities are providing customers unparalleled insights and intelligence, together with highly differentiated security and programmability.

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。首先，讓我們從基礎設施平台開始。我們六月推出的網路直覺功能就是我們在核心業務方面進行投資和創新的一個例子。這些新的基於意圖的網路功能為客戶提供了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. 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.

我們新的訂閱制的 Catalyst 9000 交換平台在短短 3 個多月內已被 1,100 多家客戶採用。我們預計整個 2018 財年將繼續保持這一勢頭，並且我們很高興看到絕大多數 Catalyst 9000 客戶都在購買我們最先進的軟體訂閱服務。

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. We continue to advance our intent-based networking for data center and private cloud environments with the latest software release of ACI. Over 4,000 ACI customers are benefiting from increased business agility with network automation, simplified management and improved security.

此外，隨著客戶繼續轉向 10 千兆、40 千兆和 100 千兆架構並接受多雲採用，我們的下一代資料中心交換平台表現出色。我們透過最新發布的 ACI 軟體繼續推進資料中心和私有雲環境的基於意圖的網路。超過 4,000 名 ACI 客戶受益於網路自動化、簡化管理和增強的安全性所帶來的業務敏捷性的提高。

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遇，可以從客戶需求從獨立產品轉向整合平台的轉變中獲益，而我們基於意圖的基礎設施產品組合將提供無與倫比的優勢。

Now turning to Applications. Applications are absolutely essential to every digital business strategy. To maximize their effectiveness, companies require a highly secure network that closely monitors applications and workload performance across a complex multi-cloud environment. 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.

現在轉向應用程式。應用程式對於每個數位業務策略來說都是絕對必要的。為了最大限度地提高效率，公司需要一個高度安全的網絡，密切監控複雜的多雲環境中的應用程式和工作負載效能。我們對 AppDynamics 的收購是我們提供從網路到資料中心再到應用程式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. An example of this is our acquisition of Perspica, providing deep machine learning, driven analytics to further extend AppDynamics' leading capabilities in application intelligence. 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.

在我們的應用程式業務中，我們正在整個產品組合中基於先進的人工智慧和機器學習實現新功能。例如，我們收購了 Perspica，提供深度機器學習和驅動分析，進一步擴展 AppDynamics 在應用智慧方面的領先能力。此外，我們也宣布了思科 Spark 平台上的最新創新產品 Spark Assistant，這是世界上第一個企業級、人工智慧語音助手，可進一步增強客戶的會議體驗。

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

我們計劃收購 BroadSoft，這將增強我們的訂閱和基於雲端的業務。BroadSoft 在不斷成長的雲端語音和聯絡中心領域擁有 1,900 萬用戶，並將使思科能夠為我們的客戶（包括本地端和雲端）提供更廣泛的協作解決方案組合。我們預計此次收購將加速我們協作業務的創新步伐，我們看到了許多擴大 BroadSoft 產品組合覆蓋範圍的機會。

Moving to Security. With an expanding threat landscape, cybersecurity is the #1 priority for businesses worldwide and is at the heart of every company's digital strategy. In a multi-cloud world, as our customers' environments become increasingly distributed, security requirements only increase. At Cisco, security continues to be a strategic imperative and fundamental to everything we do.

轉向安全。隨著威脅情勢不斷擴大，網路安全已成為全球企業的首要任務，也是每家公司數位策略的核心。在多雲世界中，隨著客戶的環境變得越來越分散，安全需求只會增加。在思科，安全仍然是一項戰略要務，也是我們所做的一切的基礎。

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

隨著客戶採用和推進基於意圖的網絡，我們的端到端安全性是保護客戶免受進階威脅的基礎。這種架構與網路、端點和雲端的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複雜性和成本。

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

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。這項差異化策略推動了我們安全產品組合營收 8% 的成長，同時我們的安全遞延收入也持續保持成長勢頭，成長了 42%。

To summarize, we delivered a solid quarter as we continue to execute well against our strategic priorities. I firmly believe that Cisco is well positioned to capture long-term growth opportunities ahead. 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.

總而言之，由於我們繼續出色地執行我們的策略重點，我們本季取得了穩健的業績。我堅信思科已做好準備，抓住未來長期成長的機會。我們始終專注於為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，並透過一系列消費模式交付，提供比以往更大的靈活性。

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

現在我將把主題交給凱利來詳細介紹我們的財務狀況。

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

謝謝，查克。我將首先總結本季的財務業績，然後展望第二季。

Total revenue was $12.1 billion, down 2%. We continue to focus on driving margins and profitability with non-GAAP operating margin of 30.4%. Non-GAAP EPS was $0.61, and operating cash flow was strong, growing 13% to $3.1 billion.

總收入為121億美元，下降2%。我們持續致力於提高利潤率和獲利能力，非公認會計準則營業利潤率為 30.4%。非公認會計準則每股收益為 0.61 美元，營運現金流強勁，成長 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. 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.

隨著企業 IT 向以應用程式為中心和採用混合雲架構的轉變，企業 IT 規則正在發生巨大變化，客戶越來越多地看到整合平台相對於獨立產品的價值。思科的意圖驅動架構專注於簡單性、自動化和安全性，使企業能夠管理和控制整個環境中使用者、裝置和應用程式的互動。

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.

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

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

那麼讓我向您詳細介紹一下我們第一季的營收。

Total product revenue was down 3%. Infrastructure Platforms declined 4%, with the vast majority of the decline driven by routing products. This was driven by continued weakness in Service Provider and a slowdown in enterprise routing.

總產品收入下降了3%。基礎設施平台下降了 4%，其中絕大部分的下降是由路由產品推動的。這是由於服務供應商的持續疲軟和企業路由的放緩所致。

Our Switching revenue was down modestly, but we saw good momentum on orders and Campus Switching with the network intuitive launch. Additionally, we did see continued strong wireless revenue performance and solid uptake of our HyperFlex data center offering.

我們的交換收入略有下降，但隨著網路直觀的推出，我們看到訂單和校園交換的良好勢頭。此外，我們確實看到無線營收表現持續強勁，且 HyperFlex 資料中心產品的普及率穩定上升。

Let's move on to Applications. 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. Applications increased 6% in total, with collaboration up modestly and AppDynamics driving most of the increase. We did see strong growth in deferred revenue of 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%.

讓我們繼續討論應用程式。提醒您，應用程式由我們的統一通訊、會議和網真協作產品組合以及我們的物聯網和應用軟體業務（如 AppDynamics 和 Jasper）組成。應用程式總體增加了 6%，其中協作略有增加，而 AppDynamics 推動了大部分成長。我們確實看到遞延收入強勁成長 18%。未計入資產負債表的未開票遞延款項也大幅增加，使遞延收入加上未開立發票遞延款項的總和增加了 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.

安全性成長了 8%，在統一威脅、進階威脅和網路安全方面表現強勁，隨著我們繼續推動更多基於訂閱的軟體產品，遞延收入成長了 42%。

Service revenue was up 1%, driven by growth in software and solution services. 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. We drove good growth in deferred revenue, which was up 10% in total, with product up 16% and services up 5%. Deferred product revenue from our recurring software and subscription offers was up 37% to $5.2 billion.

受軟體和解決方案服務成長的推動，服務收入成長了 1%。在本季度，我們推出了一系列名為「業務關鍵和高價值服務」的全新訂閱服務，該服務由人工智慧提供支持，可以預測未來的 IT 故障。我們推動了遞延收入的良好成長，整體成長了 10%，其中產品成長了 16%，服務成長了 5%。我們的經常性軟體和訂閱服務的遞延產品收入成長了 37%，達到 52 億美元。

We continue to transform our business, delivering more software offerings and driving more subscriptions in recurring revenue. In Q1, we generated 32% of our total revenue from recurring offers, an increase of over 3 points from a year ago. Revenue from software subscriptions was 52% of our software revenue.

我們將繼續轉變業務，提供更多的軟體產品，並透過訂閱帶來更多的經常性收入。在第一季度，我們的總收入中有 32% 來自於定期優惠，比去年同期增加了 3 個百分點以上。軟體訂閱收入占我們軟體收入的52%。

In terms of orders in Q1, total products orders grew 1%. Looking at our geographies, Americas grew 1%, EMEA was up 2% and APJC grew 1%. Total emerging markets declined 6%, with the BRICs plus Mexico also down 9%.

從第一季的訂單來看，總產品訂單增加了1%。從地理來看，美洲成長了 1%，歐洲、中東和非洲地區成長了 2%，亞太及日本地區成長了 1%。新興市場整體下跌 6%，其中金磚四國加上墨西哥也下跌 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%，商業成長了 12%，公共部門成長了 3%，服務提供者下降了 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. 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.

從非GAAP獲利能力來看，第一季總成長率為63.7%，下降1.5個百分點；產品毛利率為63.0%，年減1.8個百分點；服務毛利率為65.6%，下降0.6個百分點。正如我們在過去幾次電話會議中所討論的那樣，我們繼續受到記憶體價格上漲的負面影響，我們預計這種情況將在短期內持續下去。

Our operating margin was 30.4%, down 1.2 points.

我們的營業利益率為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，我們發現收購對收入產生了 60 個基點的正面影響，對毛利率沒有影響，非 GAAP 營運費用增加了 3 個百分點，對我們的非 GAAP 營運利潤率產生了 70 個基點的負面影響，對我們的 GAAP EPS 產生了 0.01 美元的負面同比影響。

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，我們的第一季非 GAAP EPS 為 0.61 美元，而 GAAP EPS 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. And free cash flow was also very strong with growth of 19% to $2.9 billion.

截至第一季度，我們的現金、現金等價物和投資總額為 716 億美元，其中美國有 25 億美元可用。第一季經營現金流強勁成長 13%，達到 31 億美元。自由現金流也非常強勁，成長 19%，達到 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.

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

To summarize, in Q1, we continued to make progress on our strategic growth priorities while maintaining rigorous discipline on profitability and cash generation. We continue to prioritize our key investments to drive long-term profitable growth.

總而言之，在第一季度，我們繼續在策略成長重點方面取得進展，同時對獲利能力和現金產生保持嚴格的紀律。我們將繼續優先考慮重點投資，以推動長期獲利成長。

Let me reiterate our guidance for the second quarter of fiscal year '18. This guidance includes the type of forward-looking information that Marilyn referred to earlier. And also, as Chuck mentioned, we announced a definitive agreement to acquire BroadSoft. The acquisition is expected to close after completion of the customary regulatory reviews, and therefore, it is not included in the guidance.

讓我重申我們對 2018 財年第二季的指引。本指南包含瑪麗蓮之前提到的前瞻性資訊類型。而且，正如查克所提到的，我們宣布了收購 BroadSoft 的最終協議。此次收購預計將在完成常規監管審查後完成，因此未包含在指引中。

We expect revenue growth in the range of 1% to 3% year-over-year. We anticipate the non-GAAP gross margin rate to be in the range of 62.5% to 63.5%. 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%. Non-GAAP earnings per share is expected to range from $0.58 to $0.60.

我們預計收入成長率將在 1% 至 3% 之間。我們預計非公認會計準則毛利率將在 62.5% 至 63.5% 之間。非 GAAP 營業利潤率預計在 29.5% 至 30.5% 之間，非 GAAP 稅收準備率預計為 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。

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

現在我將話題轉回瑪麗蓮，以便我們進入問答環節。

Thanks, Kelly. Mark, let's go ahead and open the line for questions. (Operator Instructions)

謝謝，凱利。馬克，我們開始回答問題吧。（操作員指示）

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 Sanford C. Bernstein & Co. 的 Pierre Ferragu。

Kelly, I can't help asking you an update on gross margin movements. 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? And then sequentially, your guide for gross margin in -- for Q2 was slightly below what you've been guiding for Q1. Is there still like incremental headwind coming from compound pricing hurting you from the Q1 to Q2?

凱利，我忍不住想問毛利率變動的最新情況。那麼，您能否向我們稍微介紹一下，在毛利率年減 1.5 個百分點的情況下，記憶體價格的影響有多大？然後，您對第二季毛利率的預期略低於您對第一季的預期。從第一季到第二季度，複合定價帶來的增量阻力是否仍會對您造成影響？

Yes. Thanks, Pierre. Great question. Yes, so the vast majority of the impact on our gross margin is driven by memory. It is basically 1.3 points of my product gross margin decline year-over-year. Everything else in our gross margin is basically in the normal ranges. So we expect that to continue. 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. But otherwise, we kind of see everything else in the normal range of things.

是的。謝謝，皮埃爾。好問題。是的，因此對我們毛利率的影響絕大部分是由記憶體驅動的。基本上我的產品毛利率較去年同期下降了1.3個百分點。我們毛利率中的其他一切基本上都處於正常範圍內。因此我們預計這種情況將會持續下去。當你查看指導時，我們確實將其降低了 0.5 個百分點以解決這個問題，因為展望未來，我們仍然看到成長。但除此之外，我們看到的一切都在正常範圍內。

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

我們的下一個問題來自巴克萊資本的馬克·莫斯科維茨。

Chuck, you talked about 1,100 customers have already adopted the intuitive network. I just want to get a sense in terms of how does that underpin, longer term, the steady-state growth? You guys guided to about 1% to 3% growth for the current quarter. 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?

查克，您說過已經有 1,100 名客戶採用了直覺式網路。我只是想了解一下從長期來看這對穩定成長有何支撐作用？你們預計本季的成長幅度約為 1% 至 3%。但是，隨著越來越多的客戶採用該技術，並走出實驗室，超越概念驗證，我們是否真的能看到您的成長率在穩定狀態下高於 1% 到 3%？

Yes, Mark. Thanks for the question. So clearly, we're pleased with where we're going right now with this product portfolio. We're pleased with the early feedback. I'll tell you that our sales teams, our partners and our customers, are very excited about the architecture that we've announced. It's still one quarter, so we have to get a little more time under our belt.

是的，馬克。謝謝你的提問。顯然，我們對目前的產品組合發展感到滿意。我們對早期的回饋感到滿意。我可以告訴你們，我們的銷售團隊、合作夥伴和客戶對於我們宣布的架構感到非常興奮。現在仍是一個季度，所以我們需要多花一點時間。

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

但我要告訴你的是，當我們回顧 3850 年前的轉變時，它是非常一致的。我認為，隨著越來越多的客戶有機會測試自動化、可編程性以及他們現在正在測試的所有軟體功能，我們希望該平台能夠繼續加速發展。雖然下降了一個季度，但我們對目前的狀況感到滿意。

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史蒂文·米盧諾維奇。

To continue along those lines, Chuck, you talked a little bit about the software attach rates. Could you elaborate on that? And particularly the advantage premium, which, I think, has the encryption capability and so forth? Exactly what sort of mix are you seeing? And do you think that customers are going to be willing to pay up for the premium?

為了延續這個思路，查克，你稍微談了一下軟體附加率。能詳細說明一下嗎？特別是優勢溢價，我認為它具有加密功能等等？您看到的到底是哪一種混合？您認為客戶會願意支付更高的價格嗎？

Well, thanks, Steve. 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. And I would say that it's a vast majority. 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.

好吧，謝謝，史蒂夫。所以我在腳本中說的是，購買這些平台的絕大多數客戶都選擇了先進的平台。我想說，這是絕大多數。我們知道，當我們在交換器上推出訂閱服務時，我們需要確保為客戶提供獨特的創新，以便他們可以看到其中的價值。

We couldn't just simply shift the capabilities that they had gotten before in a perpetual model. We needed to drive new innovation. 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.

我們不能只是簡單地將他們先前在永久模型中已經獲得的能力轉移。我們需要推動新的創新。因此，高級訂閱中的錨點是整體自動化能力，這真正關係到運行這些網路的營運成本；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是否存在惡意軟體。

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

我們認為這兩項是我們的客戶以前沒有的驚人的增量能力，我認為這就是我們看到如此高的附加率的原因。因此，我們對目前的情況也非常滿意。

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部的 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? 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.

是的，我的問題是，查克和凱利，請加入進來，在資料中心切換方面，你們的銷售動向有什麼變化嗎？我問這個問題的原因是，我們最近開始看到這種積極的新聞流，例如阿里雲，也許微軟也是如此。

What has changed in your view, Chuck, in terms of the sales motion? Is it the clouds paying attention to things like software automation tools, security? Anything else? Or is it just a sales focus on cloud? Help us understand.

查克，您認為銷售動議方面有什麼變化？雲端是否專注於軟體自動化工具、安全性等事物？還要別的嗎？或者它只是專注於雲端的銷售？幫助我們理解。

Vijay, thanks for the question. 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.

Vijay，謝謝你的提問。我們已經在幾次電話會議上討論過這個問題，關於我們如何與大型網路供應商重新合作——就在我成為執行長之後，這是一個漫長的過程，因為他們做出了重大的架構決策，並且他們擁有你試圖重新進入的特許經營權。

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. It's our first insertion there. And actually, it was before the large sales day they experienced, I think, last week.

但是如果你看看我們幾個季度前與微軟發布的公告，以及我們與谷歌發布的公告，你提到了阿里巴巴，我們的網站上有關於那次勝利的摘要，如果你想去看看的話。這是我們第一次進入那裡。事實上，我認為這是在他們上週經歷的大型促銷日之前。

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. 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.

因此，我們不斷取得進展，並繼續執行我告訴你們的、我們在過去一年半中一直在執行的工作，即努力走得更遠。我認為另一件變得非常清楚的事情是，這些大型網路規模供應商意識到這將是一個多雲世界，並且他們肯定已經得出結論，邊緣對於我們未來的客戶來說將是至關重要的。

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

當我想到這一點時，我們就成為了他們非常自然的合作夥伴，因為網路是所有這些雲端環境一直到我們企業客戶網路邊緣的唯一共同點。因此，我們只是繼續執行我們兩年前製定的目標，並希望繼續取得成功。

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. 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?

查克和凱利，我知道你們不再單獨列出數據，但我希望你們能給我們一些機會，並提供數據中心轉換收入增長的數字，因為它非常重要，而且是一個增長強勁的市場。作為其中的一部分，查克，與上一個問題相關，考慮到 Web 2.0 超大規模客戶細分市場的重要性，您能否量化您在該細分市場中取得的進展？

Yes. So Paul, yes, I mean, obviously, we're trying to go to new groupings. But just to give you some color. 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. And overall, data center was certainly up from a revenue perspective.

是的。保羅，是的，我的意思是，顯然我們正在嘗試新的分組。但只是為了給你一些顏色。我的意思是，我們繼續看到我們一直在談論的 ACI 投資組合的兩位數成長，繼續保持強勁的兩位數成長。整體而言，從收入角度來看，資料中心肯定有所成長。

And I think, Paul, from a perspective of the web scale, I mean, it's really just what I described. We're in discussions with all of them. We have made announcements with several of them, and we continue to execute against our strategy. And again, it's -- these are large franchises. There's 2 facets. 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.

保羅，我認為，從網路規模的角度來看，它確實就是我所描述的。我們正在與他們所有人進行討論。我們已經與其中幾家公司發布了公告，並將繼續執行我們的策略。再說一遍，這些都是大型特許經營店。有兩個方面。如果您還記得，在回電時（2 或 3 次回電時），我說過我們現在將討論擴展為 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. And so we just -- we're continuing to execute on that right now.

谷歌的聲明反映了這一評論，因為我們不僅致力於他們的基礎設施，而且還在大力致力於多雲支持、混合雲支持，並幫助連接我們的客戶——他們的基於前提的解決方案、基於邊緣的解決方案、雲端應用程式、SaaS 應用程式。因此，我們現在正在繼續執行這一目標。

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

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

Nice to see growth on the guide. I had a couple of things. First of all, for you, Kelly, can you update us on the number of Cisco ONE customers? Just as a housekeeping. And then for you, Chuck, getting a little bit deeper into the infrastructure part of the business. Great color there on the product lines, but maybe you can help us fine tune a couple of things. One, on the hyperconverged, I think Kelly actually mentioned that you were off to a good start there.

很高興看到指南的進步。我有幾件事。首先，凱利，您能否向我們介紹一下思科 ONE 客戶的數量？就當是家務事吧。然後對你來說，查克，讓我們更深入地了解業務的基礎設施部分。產品線上的顏色很棒，但也許您可以幫助我們微調一些東西。首先，關於超融合，我認為凱利實際上提到過，你在這方面已經有了一個好的開始。

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. 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. 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?

但也許您可以幫助我們了解您在該產品線上的立場、您對該平台的感受如何以及它的穩定性如何。然後是企業路由中的弱點，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。這是否會成為您業務中另一個長期承受壓力的部分，就像路由一樣？

Kelly, you want to...

凱莉，你想…

Yes, I'll just hit the Cisco ONE. Cisco ONE continues to have great momentum. We're over 22,000 customers at this point with that. So still great momentum.

是的，我只需點擊 Cisco ONE。思科 ONE 持續保持強勁發展勢頭。目前，我們的客戶已超過 22,000 名。因此勢頭仍然強勁。

Yes, Ittai, just -- so thanks for your comments, by the way. 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. I'd say a couple of quarters ago, it began to exceed what I was expecting, so I changed my expectations. And it's -- but they're doing a great job. The teams are doing well. 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. So we're very pleased with that.

是的，Ittai，順便說一句，謝謝你的評論。關於超融合產品或 HyperFlex 產品，我想告訴你，它可能一直處於我預期的高端。我想說幾個季度前，它開始超出我的預期，所以我改變了我的預期。而且——但他們做得很好。這些球隊表現都很好。我認為我們知道它的使用場景非常具有競爭力，而且我認為它會繼續下去——它們將繼續以我所期望的高端運行。所以我們對此感到非常高興。

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

關於 SD-WAN 的問題，我認為您回答得很準確，對吧。我們的客戶，我們已經在幾次電話會議中討論過這個問題，我們的客戶一直在試圖評估這種 SD-WAN 架構轉變是什麼樣的。我認為，在我們收購 Viptela 之後，我們在銷售會議上，已經在合作夥伴高峰會上向我們的銷售組織和合作夥伴社群非常清楚地說明了我們的策略是什麼。現在，我們向客戶介紹了他們可以期待的路線圖，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. And I would expect that we'll start to see customers move somewhat this quarter. And then in the second half of the year, I think our customers will continue to begin to deploy some of these solutions. So again, happy with where we are relative to the positioning of the different platforms.

所以我認為它是 SD-WAN 討論的副產品。我預計本季我們將開始看到客戶有所變動。我認為，今年下半年我們的客戶將繼續開始部署其中一些解決方案。因此，我們對不同平台的定位感到非常滿意。

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. 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?

我想，我很好奇轉向訂閱模式（包括 Cisco ONE）所帶來的收入阻力。您能否提醒我們，您在 10 月季度中看到了哪些不利因素，以及您對 1 月的預測是什麼？

Yes, George, thanks for the question. Yes, right now, we're still seeing it around that 2% range. We expect the headwind to grow once the -- once we continue to grow the intuitive network that has a subscription. As that grows, that'll grow. But right now, it's in that 2% range, 1.5% to 2% range. And we expect that to be roughly in that range next quarter as well.

是的，喬治，謝謝你的提問。是的，目前我們仍然看到它在 2% 左右的範圍內。我們預計，一旦我們繼續發展具有訂閱的直覺網絡，逆風就會增大。隨著它的增長，它也會增長。但目前，這一比例處於 2% 的範圍內，即 1.5% 到 2% 的範圍內。我們預計下個季度的成長速度也將大致在這個範圍內。

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證券的 Tal Liani。

My question is almost a follow-up to the previous question. Can you elaborate? I know you started at the beginning of the year to do the 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?

我的問題幾乎是上一個問題的後續。能詳細說明一下嗎？我知道您從年初就開始做 Switching 的訂閱了。首先，您能否詳細說明您迄今為止的經驗，客戶接受訂閱和不接受訂閱的情況？

What does it include? 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. I'm just trying to understand the implications for future years.

它包括什麼？只需詳細說明訂閱和它的概況以及迄今為止的接受率，以及是否需要對其進行任何更改以提高接受率等。我只是想了解這對未來幾年的影響。

Yes. So Tal, thanks for the question. Let me break it down. 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.

是的。所以 Tal，謝謝你的提問。讓我來分解一下。因此，今天的高級訂閱主要針對新的 Catalyst 9000 進行銷售，儘管它向我們向後兼容幾年的產品，我不知道，2、3 年的產品，這些產品我們已經在無線和路由等方面發貨了。

But what the customers are doing right now is they're basically becoming accustomed to the platform. They're testing the platform before they make an investment on any sort of backwards compatibility is what I would tell you. 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.

但客戶現在基本上已經習慣了這個平台。我想告訴你的是，他們在對任何類型的向後相容性進行投資之前都會對平台進行測試。我認為我們現在不需要做出任何改變，因為最先進的訂閱服務的附加率已經達到了我預期的最高水準。

So I think we're very pleased with where it is right now. 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. That would be our intent.

所以我認為我們對目前的狀況非常滿意。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在部分已安裝基礎上購買訂閱。這就是我們的意圖。

And just to add to that, I mean, just to be clear, 100% of the switches we're selling come with a subscription. It's just a difference on what additional features and security are added between the Advantage and the Essentials. So 100% of the new switches are sold with a subscription, and that's going well.

補充一點，我要說清楚的是，我們銷售的所有交換機都附帶訂閱。Advantage 和 Essentials 之間只是增加了哪些附加功能和安全性有所不同。因此，100% 的新交換器都是透過訂閱方式出售的，而且進展順利。

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

您的下一個問題來自加拿大皇家銀行資本市場的 Mitchell Steves。

I wanted to focus on the Security angle. So despite having pretty difficult comparisons last year, still up 8%, so can you maybe provide some color what's going well there? And then secondly, any sort of growth rates or rough numbers with the advanced threat versus web security growth rates?

我想重點關注安全角度。因此，儘管與去年相比相當困難，但仍然增長了 8%，那麼您能否提供一些資訊來說明那裡進展順利嗎？其次，高階威脅與網路安全成長率之間是否存在任何成長率或粗略數字？

Thanks, Mitch. 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. They've got their private data centers with applications running. They've got their branch networks. They've got now Edge connectivity with IoT coming in.

謝謝，米奇。因此，我認為引起客戶共鳴的是，如果你看看他們開始營運的環境，你會發現他們都在擁有多個 SaaS 供應商、多個雲端供應商的環境中運作。他們擁有自己的私人資料中心，其中運行應用程式。他們有自己的分支網絡。他們現在已經擁有了物聯網的邊緣連接。

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. 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. So I think it's resonating with our customers, and it's an architecture that we can continue to innovate on. We continue to expand on. And Kelly, any comments on the...

因此，我認為，他們必須擁有能夠保護整個網路、整個端點、整個雲端的架構的穩健性，這才是真正的區別所在。而且，我們已經進行了多年的努力，銷售針對威脅情報和惡意軟體情報的軟體和訂閱服務，我認為這將持續帶來回報。所以我認為它引起了我們客戶的共鳴，並且這是一個我們可以繼續創新的架構。我們繼續擴大。凱利，對此您有何評論？

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

是的。我的意思是，我想說高階威脅、統一威脅以及網路安全，它們都上升了兩位數。我的意思是，成長確實非常強勁。

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詹姆斯‧福塞特 (James Faucette)。

I wanted to ask a question on capital structure. 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? I'm particularly curious as to how you're thinking about the pacing of acquisitions versus buybacks, et cetera.

我想問一個關於資本結構的問題。如果擬議的新稅法改革獲得通過，或者稅法改革被否決，您能否告訴我們，您在回購和收購等方面的資本結構方面的偏好和優先事項是什麼？我特別好奇您如何看待收購與回購等的節奏。

Yes, I'll take that one. 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. So it hasn't been stopping us from anything from an acquisition perspective, and it won't. So that will continue. I would say we're definitely encouraged by the progress that's going on in the tax reform.

是的，我要那個。我想說的是，就收購而言，稅收政策不會對我們產生任​​何影響，因為我們很幸運擁有充足的現金流和資本獲取管道。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。這種情況將會持續下去。我想說，稅制改革的進展確實令我們感到鼓舞。

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

因此，就像我們過去所說的那樣，當這種情況發生時，如果我們獲得了遣返（目前大多數計劃都有），我們將繼續像以前一樣，隨著盈利增長而增加股息。我們真正有機會的是比以前更積極地進行股票回購。當然，我們希望確保我們繼續擁有足夠的火力，能夠繼續進行正確的收購，以幫助思科長期保持正確的定位。

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

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

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. 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.

我想看看您是否可以給我們更多見解，就我們相當長一段時間以來看到的第一個同比增長的季度而言，您如何看待這一前景。所以我想知道，如果我們將其歸因於簡單的比較或遞延收入的累積或某些特定的產品週期，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. I mean, I'll give you some color. I'd say, it's a combination of things, right? 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. So that's helping.

是的，當然。我的意思是，我會給你一些顏色。我想說，這是多種因素的綜合作用，對嗎？我的意思是，如果我看一下我們在軟體和訂閱量穩定成長方面所取得的進展所帶來的資產負債表外的收入，那麼現在我們產品收入的 12% 來自經常性優惠和資產負債表外的收入。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. So we're encouraged. 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.

我還想說，我們在直覺網路上的發布以及圍繞核心重塑的興奮正在產生影響。所以我們受到鼓舞。您聽我提到過，我們看到對 [man 或 wan] 校園交換的整體積極需求，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. 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.

因此，加上我們在第一季獲得的相當不錯的訂單，我們獲得了非常好的積壓訂單狀況，讓我們可以很好地預測下一季的情況。所以我想說，總的來說，總體戰略，也就是過去幾年我們一直在執行和討論的戰略，我們一直在取得進展，所有這些都使我們的前景受益。

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%. So we've effectively doubled that. And I think that's certainly helpful. And just we have seen -- we're seeing positive feedback on the launch. So I'm sorry that was Simon. I apologize, Simon.

詹姆斯，我只是想澄清一點，或者補充一點，實際上，當凱利說我們的產品收入的 12% 來自經常性優惠時，為了說明這一點，當我成為首席執行官時，這個比例是 6%。因此我們實際上將其翻了一番。我認為這確實很有幫助。正如我們所看到的——我們看到了對此次發布的積極反饋。我很抱歉那是西蒙。我很抱歉，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. I'm on mute. Pardon me. Yes, I was hoping to ask about competition in the Enterprise Switching space. And we've seen a little bit more out of Huawei perhaps, not in the U.S., of course, but international. 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.

噢，對不起。我靜音了。對不起。是的，我希望詢問有關企業交換領域的競爭情況。我們或許已經看到了更多華為的表現，當然不是在美國，而是在國際上。我想知道您是否可以為我們介紹這些顏色的背景，包括來自他們以及一些傳統競爭對手的顏色。

In the enterprise switches?

在企業交換器中？

Yes, enterprise. Yes.

是的，企業。是的。

So thanks for the question, Jeff. 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. I would say that our teams have been very focused on it. I think that the intuitive network launch that we did in June really changes the discussion.

謝謝你的提問，傑夫。我認為，如果你看看我們在世界各地看到的一些表現，就你所說的歐洲和亞洲而言，我們已經討論了華為在過去幾個季度的活動。我想說我們的團隊一直非常關注這一點。我認為我們在六月推出的直覺網路確實改變了討論。

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.

當我們與那些以硬體前期成本為價值支柱的競爭對手競爭時，我認為我們正在改變討論的焦點，因為如果你看一下 5 年期間運營該基礎設施的成本，它可能是前期硬體成本的 10 倍。

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

因此，去幫助我們的客戶確實減少了這是一個價值主張，有助於我們改變與競爭對手相關的討論。因此，他們仍然非常強硬，但我們認為，在未來幾年內，我們可以改變預先在盒子價格上競爭的情況。

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. What are your expectations for Security growth? In the past, you've talked about driving double-digit growth on the Security side. Is that still a goal? And where do you think you are in terms of getting there?

很高興看到安全性有所提高。您對安全成長有何期望？過去，您曾談到推動安全方面實現兩位數成長。這還是一個目標嗎？您認為目前距離實現這一目標還有多遠？

Yes, Erik, thanks for that. So at our financial analyst conference this summer, we articulated a long-range guide in line with what you just described. We're going to have quarters that are going to be -- that are going to vary from that. But that's definitely our long-term objective.

是的，艾瑞克，謝謝你。因此，在今年夏天的金融分析師會議上，我們根據您剛才所描述的內容制定了長期指南。我們將有一些季度 — — 這些季度將會有所不同。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. 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.

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。一旦我們建立了這種架構，我們就可以真正防禦並即時防禦已知威脅，我們可以透過惡意軟體和電子郵件了解威脅，並且可以同時在網路、雲端和端點設備中防範威脅。

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

因此，團隊正在努力繼續推動創新，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這個架構中。我想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的吉姆蘇瓦。

It's Jim Suva from Citi. 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. Kelly and Chuck, you've mentioned strength in orders and also the subscription model taking traction.

我是花旗銀行的吉姆‧蘇瓦。正如之前提到的，根據您提出的增長 1 到 3 的指導，這是你們很長一段時間以來第一次看到收入同比增長。凱利和查克，你們提到了訂單強勁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? Or that still a bit of a challenge in the orders that Chuck mentioned are just so much stronger? And Chuck, any end market areas we should think about for that order strength?

我們現在是否已經到了訂閱模式轉變不再拖累同比業績的階段了？或者說，查克提到的命令仍然有點挑戰性，只是更強大了？查克，為了達到這樣的訂單強度，我們應該考慮哪些終端市場領域？

Yes, I'll take the first part. I'd say no. 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. 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. But I'm still putting more and more offers. 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.

是的，我將選擇第一部分。我認為不是。我想說的是，我們仍在以更快的速度擴大報價基礎，並將其納入資產負債表，而不是將其取消。但同樣，52 億美元的餘額年增了 37%，我的損益表也成長了 37%。但我仍在提出越來越多的提議。隨著我們透過核心網路實現規模擴大，不僅僅是在交換上，而是在整個 DNA 中心，我認為這將繼續增加。

So it's still going to be a headwind. 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. 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.

所以這仍將是一場逆風。正如我之前所說，隨著我們規模的擴大，未來幾年這 1.5 到 2 個點將變為 2 到 3 個點。因此，接下來還會有更多，但同樣，我們正在受益——我們開始看到擁有更多穩定性、能夠擁有更好的視線和更少大規模波動的好處。

And Jim, just a market segment perspective that it's probably pretty clear. We saw service provider pretty much the same as it has been for some period of time. 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.

吉姆，從市場區隔的角度來看，這可能非常清楚。我們看到的服務提供者與一段時間以來的情況基本上相同。我們最大的企業客戶（按照我們的定義）實際上只是我們擁有的一個組織部門，我們確實看到 - 我們在那裡看到了負的中等個位數，正如您在幻燈片上看到的。

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

在我們的商業業務中，我們在全球範圍內實現了 12% 的成長率，並且在每個地區都實現了兩位數的成長，這總是令人欣慰的。我想告訴您的是，我們的企業客戶是最大的客戶之一，他們花費最長的時間來評估新平台和新功能，例如網路直覺以及整個 SD-WAN 討論。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. 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. Last quarter, we said we saw it improving. And what I would tell you is that in this quarter, we saw the year end that was -- that seemed fairly normal.

我們的商業客戶往往比其他客戶行動更快。最後，在公共部門方面，我們沒有談論太多，我認為，我想說的是，兩個季度前，我們談到了聯邦業務的壓力。上個季度，我們說我們看到了它的改善。我想告訴你們的是，在本季度，我們看到了年末的情況——這似乎相當正常。

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

儘管仍有許多領導職位尚未填補，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，就本季度而言，我們看到聯邦業務在本季度結束時基本恢復到了我們的預期。這可能是我能針對各個細分市場提供的評論。

Okay. I think we are...

好的。我認為我們是...

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

嗯，就是這樣，不是嗎？

Yes. We're going to wrap up.

是的。我們要結束了。

Okay. I'll wrap it. Thanks, everyone, again for joining us today. I want to -- I just want to wrap with a few points. First off, we are committed to executing on this vision to deliver a highly secure, intelligent platform for our customers' digital business. 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.

好的。我把它包起來。再次感謝大家今天的參與。我想——我只想總結幾點。首先，我們致力於實現這個願景，為客戶的數位業務提供高度安全、智慧的平台。我們專注於該策略的五個關鍵要素，以幫助客戶取得成功並推動我們和股東的獲利成長。

First, we are fundamentally reinventing networking with our intent-based networking platform. We intend to further accelerate our leadership here, extending intuitive technologies across the broad portfolio that we have while increasing application visibility and automation.

首先，我們正在利用基於意圖的網路平台從根本上重塑網路。我們打算進一步加強我們的領導地位，在我們廣泛的產品組合中擴展直覺技術，同時提高應用程式的可見度和自動化程度。

Secondly, security is fundamental to everything we do. You can't build a next-generation digital business without a comprehensive security strategy across endpoints, network and the cloud. 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.

其次，安全是我們所做的一切的根本。如果沒有跨端點、網路和雲端的全面安全策略，就無法建立下一代數位業務。第三，很明顯這是一個多雲世界，思科處於獨特的地位，可以透過擴展我們的多雲產品組合和擴大與策略雲供應商的網路規模合作夥伴關係來幫助我們的客戶應對這一挑戰。

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

我們與 Google 的合作就是我們與所有大型網路供應商合作的一個例子。第四，我們正在利用進階分析技術釋放資料的力量，例如我們利用 AppDynamics、加密流量分析和 TELUS 威脅情報提供的解決方案。

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

我們還在我們的整個產品組合中嵌入人工智慧和機器學習技術。最後，我們將繼續透過廣泛的協作組合提供更優質的客戶和員工體驗，包括收購 BroadSoft 的意圖。

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

瑪麗蓮，我會把它交還給你。

Thanks, Chuck. 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. Pacific time, 4:30 p.m. 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。思科的下一次季度財報電話會議將於 2018 年 2 月 14 日星期三下午 1:30 舉行，屆時將公佈我們 2018 財年第二季的業績。太平洋時間下午 4:30。東部時間。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 the Cisco Investor Relations Department, and we thank you very much for joining the call today.

我們現在計劃結束通話。如果您有任何其他問題，請隨時聯繫思科投資者關係部，非常感謝您今天參加電話會議。

Thank you for participating on today's conference call. If you would like to listen to the call in its entirety, you may call (866) 421-0447. For participants dialing from outside the U.S, please dial (203) 369-0803. This concludes today's call. 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，可以撥打 (866) 421-0447。對於從美國境外撥打電話的參與者，請撥打 (203) 369-0803。今天的電話會議到此結束。您現在可以斷開連線。