思科 (CSCO) 2018 Q2 法說會逐字稿

Welcome to Cisco Systems Second Quarter Fiscal Year 2018 Financial Results Conference Call. At the request of Cisco Systems, today's call is being recorded. If anyone has any objections, you may disconnect.

歡迎參加思科系統公司 2018 財年第二季度財務業績電話會議。應 Cisco Systems 的要求，對今天的通話進行錄音。如果有人有任何異議，您可以斷開連接。

Now I would like to introduce Marilyn Mora, Head of Investor Relations. Ma'am, you may begin.

現在我想介紹一下投資者關係主管 Marilyn Mora。女士，您可以開始了。

Thanks, Kim. Welcome, everyone, to Cisco's Second Quarter Fiscal 2018 Quarterly Earnings Conference Call. This is Marilyn Mora, Head of Investor Relations, and I'm joined by Chuck Robbins, our Chairman and CEO; and Kelly Kramer, our CFO.

謝謝，金。歡迎大家參加思科 2018 財年第二季度季度收益電話會議。我是投資者關係主管 Marilyn Mora，我們的董事長兼首席執行官 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. A corresponding webcast with slides, including supplemental information, will be made available on our website in the Investor Relations section following the call.

到現在為止，您應該已經看到了我們的收益新聞稿。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。

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。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 third 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 reports on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

我們今天將討論的事項包括前瞻性陳述，包括我們將為 2018 財年第三季度提供的指導意見。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，特別是關於 10-K 和 10-Q 表格的最新報告，其中確定了可能導致實際結果與前瞻性陳述中包含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。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 now turn it over to Chuck.

有了這個，我現在把它交給查克。

Thank you, Marilyn, and good afternoon, everyone. We had a great quarter. In Q2, we returned to revenue growth, we continued to drive momentum in our intent-based networking portfolio and saw strength across the business. We made continued progress in shifting more of our business toward software and subscriptions. This performance led to strong margins, solid cash flow and double-digit non-GAAP EPS growth. We are clearly seeing the results of the strategy we've articulated to you over the last 10 quarters. We also increased the dividend and share repurchase authorization, reinforcing the confidence we have in our future.

謝謝瑪麗蓮，大家下午好。我們有一個很棒的季度。在第二季度，我們恢復了收入增長，我們繼續推動我們基於意圖的網絡產品組合的發展勢頭，並看到了整個業務的實力。我們在將更多業務轉向軟件和訂閱方面取得了持續進展。這一業績帶來了強勁的利潤率、穩健的現金流和兩位數的非 GAAP 每股收益增長。我們清楚地看到了我們在過去 10 個季度向您闡述的戰略的結果。我們還增加了股息和股票回購授權，增強了我們對未來的信心。

As we shared with you previously, customers are facing ever-increasing complexity in their IT environments with the proliferation of devices and IoT, the adoption of multiple clouds and the exponential growth of security threats. The network has never been more critical to business success because of its ability to simplify this complexity while enabling real-time informed business decisions. This is why Cisco is well positioned for the future as we help our customers move to highly secure and intelligent platforms for their digital businesses.

正如我們之前與您分享的那樣，隨著設備和物聯網的激增、多雲的採用以及安全威脅的指數增長，客戶的 IT 環境正面臨著越來越複雜的問題。網絡對於業務成功從未像現在這樣重要，因為它能夠簡化這種複雜性，同時支持實時做出明智的業務決策。這就是為什麼思科在未來處於有利地位，因為我們幫助我們的客戶為他們的數字業務遷移到高度安全和智能的平台。

Now let me take you through what I'm seeing across the business and how Cisco's innovation is driving momentum across the portfolio. First, let's start with infrastructure platforms. We continue to be intensely focused on delivering differentiated innovation in our core, which has resulted in our return to revenue growth this quarter. Last June, we launched The Network. Intuitive., a fundamental reinvention of networking and the industry's leading intent-based networking portfolio. Two weeks ago, we announced the next phase of this intent-based network innovation with powerful assurance capability spanning across our Data Center, Campus and Wireless portfolios. These will help our customers unlock the power of network data and will bring greater insights and visibility with rich predictive analytics.

現在讓我向您介紹我在整個企業中看到的情況，以及思科的創新如何推動整個產品組合的發展勢頭。首先，讓我們從基礎設施平台開始。我們繼續專注於在我們的核心領域提供差異化創新，這使我們在本季度恢復了收入增長。去年 6 月，我們推出了 The Network。 Intuitive.，對網絡的根本改造和業界領先的基於意圖的網絡產品組合。兩週前，我們宣布了這一基於意圖的網絡創新的下一階段，該創新具有跨越我們的數據中心、園區和無線產品組合的強大保證能力。這些將幫助我們的客戶釋放網絡數據的力量，並通過豐富的預測分析帶來更深刻的見解和可見性。

We saw strong adoption of our subscription-based Catalyst 9000 switching platform as we more than doubled our customer base from last quarter to over 3,100 customers. This is the fastest-ramping new product introductions we've had in our history and a fantastic example of the innovation we've delivered over the past 2 years.

我們看到基於訂閱的 Catalyst 9000 交換平台得到廣泛採用，因為我們的客戶群比上一季度增加了一倍多，達到 3,100 多個客戶。這是我們歷史上推出速度最快的新產品，也是我們在過去 2 年中交付的創新的一個很好的例子。

When I became CEO, I challenged our team to increase the pace of innovation in the space, and I could not be more proud of what they've accomplished.

當我成為 CEO 時，我向我們的團隊提出挑戰，要求他們加快該領域的創新步伐，我為他們所取得的成就感到無比自豪。

The network is also a key enabler for our customers as they increasingly adopt a multi-cloud strategy. They need a unified, automated and scalable environment across their data centers, private clouds and public clouds. Cisco's cloud management, analytics, automation and security, combined with strategic partnerships such as Microsoft and Google, position us very well to meet customer needs.

隨著客戶越來越多地採用多雲戰略，該網絡也是我們客戶的關鍵推動因素。他們需要跨數據中心、私有云和公共雲的統一、自動化和可擴展的環境。思科的雲管理、分析、自動化和安全，再加上微軟和谷歌等戰略合作夥伴，使我們能夠很好地滿足客戶需求。

Further extending our cloud-focused software offers, we recently introduced a Cisco container platform to simplify the deployment of cloud-native applications in containers with Kubernetes. This marks an important milestone in our partnership with Google to deliver the future hybrid cloud architecture. In general, we are encouraged with the overall progress we are making with the web-scale community.

為了進一步擴展我們以雲為中心的軟件產品，我們最近推出了一個思科容器平台，以使用 Kubernetes 簡化雲原生應用程序在容器中的部署。這標誌著我們與穀歌合作交付未來混合雲架構的一個重要里程碑。總的來說，我們對網絡規模社區取得的總體進展感到鼓舞。

Now turning to security. Cybersecurity continues to be a top concern for customers as they evolve their enterprise architectures to address the challenges of a pervasive threat environment. We are leading the security industry with an integrated architecture and a comprehensive best-of-breed portfolio across the network, endpoint and cloud. This approach enables us to share context, intelligence, visibility and policy to reduce the time to detect and respond to threats.

現在轉向安全。隨著客戶不斷發展其企業架構以應對無處不在的威脅環境帶來的挑戰，網絡安全仍然是客戶最關心的問題。我們通過跨網絡、端點和雲的集成架構和全面的同類最佳產品組合引領安全行業。這種方法使我們能夠共享上下文、情報、可見性和策略，以減少檢測和響應威脅的時間。

We expanded our endpoint protection capabilities with Cisco Security Connector, a unique security application designed to give enterprises the deepest visibility and control over network activity on iOS devices. Together with Apple, we are helping our joint customers become the most connected, collaborative and secured organizations in the world.

我們通過 Cisco Security Connector 擴展了我們的端點保護功能，這是一種獨特的安全應用程序，旨在為企業提供對 iOS 設備上網絡活動的最深入的可見性和控制。我們與 Apple 一起，幫助我們的共同客戶成為世界上連接最緊密、協作最安全的組織。

Additionally, Cisco, Apple, Allianz and Aon are collaborating on an industry-first cyber risk management solution, which integrates technology, services and enhanced cyber insurance to make businesses more resilient.

此外，思科、Apple、Allianz 和 Aon 正在合作開發業界首創的網絡風險管理解決方案，該解決方案集成了技術、服務和增強的網絡保險，使企業更具彈性。

Now moving to applications. The future of applications will unlock the power of trillions of terabytes of data across connected users, things and devices. In today's digital world, we are executing on our strategy to transition more of our business to cloud-based subscriptions and driving increased relevance at the application layer of the stack to enable a better experience for our customers.

現在轉向應用程序。應用程序的未來將釋放連接用戶、事物和設備的數万億兆字節數據的力量。在當今的數字世界中，我們正在執行我們的戰略，將我們的更多業務過渡到基於雲的訂閱，並推動堆棧應用層的相關性增加，從而為我們的客戶提供更好的體驗。

We continue to see progress in scaling AppDynamics analytics capabilities. Over 20% of our top 500 global enterprise accounts have already adopted this technology. This is another example of our ability to scale acquisitions through our unparalleled go-to-market model. We also closed the BroadSoft acquisition earlier this month, which provides us with access to its strong user base of 20 million and greatly strengthens our cloud-based collaboration subscription portfolio.

我們繼續看到在擴展 AppDynamics 分析功能方面取得的進展。在我們的全球 500 強企業客戶中，超過 20% 的客戶已經採用了這項技術。這是我們通過無與倫比的上市模式擴大收購規模的另一個例子。本月早些時候，我們還完成了對 BroadSoft 的收購，這使我們能夠接觸到其 2000 萬的強大用戶群，並極大地加強了我們基於雲的協作訂閱產品組合。

To summarize, I'm very pleased with the traction we're seeing in our business, the progress we're making against our strategy, and I'm very optimistic about our future.

總而言之，我對我們在業務中看到的牽引力、我們在戰略方面取得的進展感到非常高興，而且我對我們的未來非常樂觀。

I'd also just like to say how incredibly proud I am of Cisco's leadership in environmental, social and governance issues, including the work we're doing to help solve the global skills gap. Our recent recognition by Barron's as the #1 most sustainable company in the United States underscores our deep commitment to enable a better world in which everyone has the opportunity to thrive.

我還想說，我對思科在環境、社會和治理問題上的領導地位感到無比自豪，包括我們為幫助解決全球技能差距所做的工作。我們最近被《巴倫周刊》評為美國排名第一的最具可持續性的公司，這凸顯了我們致力於打造一個更美好的世界，讓每個人都有機會茁壯成長的堅定承諾。

Now I'll turn it over to Kelly to walk through more details 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. I'll start with a summary of our financial results for the quarter, followed by a discussion of the impact of tax reform and then end with Q3 guidance.

謝謝，查克。我將從我們本季度的財務業績摘要開始，然後討論稅制改革的影響，然後以第三季度的指導結束。

Q2 was a strong quarter with results exceeding our expectations. We executed well in a number of areas, including good orders momentum, solid revenue growth and strong margins and cash flow. Total revenue was $11.9 billion, up 3%. Non-GAAP net income was $3.1 billion, up 10%; and non-GAAP EPS was $0.63, up 11%. Operating cash flow grew 8% to $4.1 billion, with free cash flow up 10%. We continue to focus on driving margins and profitability, increasing our non-GAAP operating margin rate to 31.7%, up 0.7 points.

第二季度是一個強勁的季度，結果超出了我們的預期。我們在許多領域表現良好，包括良好的訂單勢頭、穩健的收入增長以及強勁的利潤率和現金流。總收入為 119 億美元，增長 3%。非美國通用會計準則淨收入為 31 億美元，增長 10%；非 GAAP 每股收益為 0.63 美元，增長 11%。經營現金流增長 8% 至 41 億美元，自由現金流增長 10%。我們繼續專注於提高利潤率和盈利能力，將我們的非 GAAP 營業利潤率提高到 31.7%，上升 0.7 個百分點。

Let me provide more detail on our Q2 revenue. Total product revenue was up 3%. Infrastructure platforms returned to growth, up 2%, with broad strength across the businesses. Within Switching, we had strong growth in data center switching, and we're seeing great momentum with our new campus switch, the Cat 9K. We also had strong Wireless growth, driven by our Wave 2 offerings and Meraki. Data Center was up double digits, driven by server products as well as our HyperFlex offerings. These increases were partially offset by a modest decline in our routing products, driven by continued weakness in Service Provider.

讓我提供有關我們第二季度收入的更多詳細信息。產品總收入增長了 3%。基礎設施平台恢復增長，增長 2%，各業務均表現強勁。在交換方面，我們在數據中心交換方面取得了強勁增長，並且我們看到了我們新園區交換機 Cat 9K 的巨大發展勢頭。在我們的 Wave 2 產品和 Meraki 的推動下，我們的無線業務也實現了強勁增長。在服務器產品和我們的 HyperFlex 產品的推動下，數據中心增長了兩位數。由於服務提供商的持續疲軟，我們的路由產品的適度下降部分抵消了這些增長。

Let's move on to applications. Applications is made up of our collaboration portfolio of Unified Communications, conferencing and TelePresence; as well as our IoT and application software businesses, Jasper and AppDynamics. Applications was up 6% in total, with strength in TelePresence and conferencing as well as AppDynamics, offset by some weakness in UC endpoints. There was also a strong increase in deferred revenue, up 18%.

讓我們繼續討論應用程序。應用程序由我們的統一通信、會議和網真協作產品組合組成；以及我們的物聯網和應用軟件業務 Jasper 和 AppDynamics。應用程序總體增長了 6%，TelePresence 和會議以及 AppDynamics 的優勢被 UC 端點的一些弱點所抵消。遞延收入也有強勁增長，增長了 18%。

Security was up 6%, with strong performance in unified threat and web security. Deferred revenue grew 38% as we continue to drive more subscription-based software offers.

安全性增長 6%，在統一威脅和網絡安全方面表現強勁。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 38%。

Service revenue was up 3%, driven by growth in software and solutions support.

受軟件和解決方案支持增長的推動，服務收入增長了 3%。

We continue to transform our business, delivering more software offerings and driving more subscriptions and recurring revenues. In Q2, we generated 33% of our total revenue from recurring offers, an increase of 2 points from a year ago. Revenue from subscriptions was 52% of our software revenue. We drove good growth in deferred revenue, which was up 10% in total, with product up 19% and services up 4%. Deferred revenue, product revenue from our recurring software and subscription offers was $5.5 billion, up 36%.

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和經常性收入。在第二季度，我們從經常性優惠中獲得了總收入的 33%，比一年前增加了 2 個百分點。訂閱收入占我們軟件收入的 52%。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 19%，服務增長了 4%。我們的經常性軟件和訂閱優惠的遞延收入、產品收入為 55 億美元，增長 36%。

We saw strong momentum in Q2 product orders, growing 5% in total. Looking in our geographies, Americas grew 6%, EMEA was up 6% and APJC was flat. Total emerging markets was up 1%, with the BRICS plus Mexico down 1%. In our customer segments, enterprise was up 3%, commercial grew 14%, public sector was up 8% and service provider declined 5%.

我們看到第二季度產品訂單勢頭強勁，總計增長 5%。縱觀我們的地區，美洲增長 6%，歐洲、中東和非洲增長 6%，亞太及日本持平。新興市場總量增長 1%，金磚國家和墨西哥下降 1%。在我們的客戶群中，企業增長 3%，商業增長 14%，公共部門增長 8%，服務提供商下降 5%。

From a non-GAAP profitability perspective, total Q2 growth margin was 64.7%, up 0.6 points. Product gross margin was 63.3%, up 0.9 points. And service gross margin was 68.5%, down 0.3 points.

從非 GAAP 盈利能力的角度來看，第二季度總增長率為 64.7%，上升 0.6 個百分點。產品毛利率為63.3%，上升0.9個百分點。服務毛利率為68.5%，下降0.3個百分點。

We continue to be negatively impacted by the higher memory pricing we have discussed over the past several calls, which we expect to continue in the near term. Our operating margin was 31.7%, up 0.7 points.

我們繼續受到我們在過去幾次電話會議中討論的更高內存定價的負面影響，我們預計這種情況將在短期內繼續存在。我們的營業利潤率為 31.7%，上升 0.7 個百分點。

When we look at the impact of acquisitions on our results year-over-year, there's been an 80 basis point positive impact on revenue and a negative $0.01 year-over-year impact on our non-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 80 個基點的積極影響，對我們的非 GAAP 每股收益產生了 0.01 美元的負面影響。

In terms of the bottom line, our Q2 non-GAAP EPS was $0.63, up 11%. GAAP EPS was a loss of $1.78, driven by the onetime charges related to U.S. tax reform.

就底線而言，我們的第二季度非 GAAP 每股收益為 0.63 美元，增長 11%。由於與美國稅制改革相關的一次性費用，GAAP 每股收益虧損 1.78 美元。

We're very pleased with the tax rate reduction related to the Tax Cuts and Jobs Act. Since our fiscal year ends in July, we won't realize a full benefit this year but will start -- and we will start to realize that full year's worth in fiscal year '19. For Q2, our non-GAAP tax rate was 20% to adjust to our full year estimated non-GAAP tax rate of 21%. We are currently forecasting our estimated non-GAAP tax rate for fiscal year '19 to be 20%. This quarter, we incurred an $11.1 billion charge to our income tax provision that is comprised of $9 billion related to the U.S. transition tax, $1.2 billion of foreign withholding tax and $0.9 billion for the remeasurement of our net deferred tax assets related with the lower tax rate. Our Q2 GAAP tax rate includes the impact of this charge while our non-GAAP rate excludes it.

我們對與減稅和就業法案相關的稅率降低感到非常高興。由於我們的財年在 7 月結束，我們今年不會實現全部收益，但會開始——我們將在 19 財年開始實現全年的價值。對於第二季度，我們的非 GAAP 稅率為 20%，以調整我們全年估計的 21% 非 GAAP 稅率。我們目前預測 19 財年的非 GAAP 稅率估計為 20%。本季度，我們的所得稅撥備產生了 111 億美元的費用，其中包括與美國過渡稅相關的 90 億美元、12 億美元的外國預扣稅和 9 億美元用於重新計算與較低稅收相關的淨遞延稅資產速度。我們的第二季度 GAAP 稅率包括了這項費用的影響，而我們的非 GAAP 稅率則不包括它。

We ended Q2 with total cash, cash equivalents and investments of $73.7 billion, with $2.4 billion available in the U.S. We plan on repatriating $67 billion of our offshore funds to the U.S. in Q3 of fiscal year '18. Q2 operating cash flow of $4.1 billion reflects strong growth of 8%. Free cash flow was also very strong with growth of 10% to $3.9 billion. From a capital allocation perspective, we returned $5.4 billion to shareholders during the quarter that included $4 billion of share repurchases and $1.4 billion for our quarterly dividend.

截至第二季度，我們的現金、現金等價物和投資總額為 737 億美元，其中 24 億美元在美國可用。我們計劃在 18 財年第三季度將 670 億美元的離岸資金匯回美國。第二季度運營現金流為 41 億美元，強勁增長了 8%。自由現金流也非常強勁，增長 10% 至 39 億美元。從資本配置的角度來看，本季度我們向股東返還了 54 億美元，其中包括 40 億美元的股票回購和 14 億美元的季度股息。

Today, we announced a $0.04 increase to the quarterly dividend to $0.33 per share, up 14% year-over-year. This represents a yield of approximately 3.1% based on today's closing price. We also announced a $25 billion increase to the authorization of the share repurchase program. This raises the remaining share repurchase authorization to approximately $31 billion. We expect to utilize this over the next 18 to 24 months. This significant dividend increase and additional share repurchase authorization reinforces our commitment to returning capital to our shareholders and our confidence in the strength and stability of our ongoing cash flows.

今天，我們宣布將季度股息增加 0.04 美元至每股 0.33 美元，同比增長 14%。根據今天的收盤價，這意味著收益率約為 3.1%。我們還宣布增加 250 億美元的股票回購計劃授權。這將剩餘的股票回購授權提高到約 310 億美元。我們希望在未來 18 到 24 個月內使用它。這一顯著的股息增加和額外的股票回購授權加強了我們向股東返還資本的承諾，以及我們對持續現金流量的實力和穩定性的信心。

To summarize, Q2 was a strong quarter with solid top line growth, strong profitability, cash flows and order growth. We continue to make solid progress on our strategic priorities, making key investments to drive our long-term growth.

總而言之，第二季度是一個強勁的季度，收入增長穩健，盈利能力、現金流和訂單增長強勁。我們繼續在我們的戰略重點上取得穩步進展，進行關鍵投資以推動我們的長期增長。

Let me reiterate our guidance for the third quarter of fiscal year '18. This guidance includes the type of forward-looking information that Marilyn referred to earlier. We closed the acquisition of BroadSoft in early Q3, and the impact of the acquisition is factored into our guidance.

讓我重申我們對 18 財年第三季度的指導。本指南包括 Marilyn 之前提到的前瞻性信息類型。我們在第三季度初完成了對 BroadSoft 的收購，此次收購的影響已納入我們的指導意見。

We expect revenue growth in the range of 3% to 5% year-over-year. We anticipate the non-GAAP gross margin rate to be in the range of 63% to 64%. The non-GAAP operating margin rate is expected to be in the range of 29.5% to 30.5%. And the non-GAAP tax provision rate is expected to be 21%. Non-GAAP earnings per share is expected to range from $0.64 to $0.66.

我們預計收入同比增長 3% 至 5%。我們預計非美國通用會計準則毛利率將在 63% 至 64% 的範圍內。非 GAAP 營業利潤率預計在 29.5% 至 30.5% 之間。非美國通用會計準則的稅收撥備率預計為 21%。非 GAAP 每股收益預計在 0.64 美元至 0.66 美元之間。

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

我現在將把它轉回瑪麗蓮，這樣我們就可以進入問答環節了。

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

坦克，凱利。金，讓我們開始提問吧。 （操作員說明）

Our first question comes from Vijay Bhagavath with Deutsche Bank Securities.

我們的第一個問題來自德意志銀行證券公司的 Vijay Bhagavath。

So my question is around intent based, Chuck and Kelly, please join in, which it seems like it's resonating with your customers. Is this mostly a U.S. phenomenon, Chuck? Are your overseas customers also looking into intent based? And then how do you see intent based kind of catching across the portfolio? Why not extend the intent based across the broader portfolio?

所以我的問題是關於基於意圖的，Chuck 和 Kelly，請加入，這似乎引起了您的客戶的共鳴。 Chuck，這主要是美國現象嗎？您的海外客戶是否也在調查意向？那麼您如何看待基於意圖的投資組合？為什麼不將基於更廣泛產品組合的意圖擴展？

Yes. It's a great question, Vijay. First of all, we're incredibly pleased with the early acceptance of this intent-based portfolio. I called out in my opening comments that this Catalyst 9000 is the fastest-ramping product in our history, which is pretty impressive. I'd say, it's fairly balanced across the geographic regions, probably pretty much in line with what percentage of the business they represent, but Kelly can validate that in just a moment. What I would tell you is that we have 3,100 customers who have adopted this platform. We obviously have the opportunity, and we will extend the capabilities across the rest of our portfolio so that our customers who are driving automation can drive it across not only campus switching but also routing, bringing the Viptela SD-WAN capabilities to play. We are integrating it backwards with ACI in the Data Center as well as within our Security portfolio. So our strategy is to continue to enhance our customers' ability to drive intent across their -- all of their technology areas as well as to gain context through analytics out of all of their technologies. So 3,100 customers so far. I think our total customer population is well over 800,000, so we obviously have room to run. And we also have seen it, I'd say, from a segment perspective, the commercial marketplace has been a great adopter of the technology. And what I would tell you is that the enterprises are -- have been evaluating it because it represents a different architectural approach with automation and analytics and security built into the network. So Kelly, comments on those?

是的。這是一個很好的問題，Vijay。首先，我們對早日接受這種基於意圖的產品組合感到非常高興。我在開場白中指出，這款 Catalyst 9000 是我們歷史上發展速度最快的產品，這令人印象深刻。我會說，它在地理區域之間相當平衡，可能與它們所代表的業務百分比非常一致，但凱利可以立即驗證這一點。我要告訴你的是，我們有 3,100 名客戶採用了這個平台。我們顯然有機會，我們將擴展我們產品組合的其餘部分的功能，以便我們推動自動化的客戶不僅可以在園區交換而且在路由方面推動它，從而發揮 Viptela SD-WAN 功能的作用。我們正在將它與數據中心以及我們的安全產品組合中的 ACI 向後集成。因此，我們的戰略是繼續增強客戶在他們的所有技術領域推動意圖的能力，並通過分析他們所有的技術來獲取背景信息。到目前為止，已有 3,100 名客戶。我認為我們的客戶總數遠遠超過 800,000，因此我們顯然還有運行空間。我們也看到了，我想說，從細分市場的角度來看，商業市場已經很好地採用了這項技術。我要告訴你的是，企業一直在對其進行評估，因為它代表了一種不同的架構方法，在網絡中內置了自動化、分析和安全性。凱利，對此有何評論？

Yes. No, just to add to that, I mean, you're correct, I mean, the geography is split kind of in proportion, as you would expect. And across commercial, enterprise and public sector, it's fairly balanced as well. So it's just very broad-based adoption across the board. And again, we're very happy about the adoption of the more advanced software package on the advantage that's very heavily weighted towards that. So we're excited about that.

是的。不，只是補充一點，我的意思是，你是對的，我的意思是，正如你所期望的那樣，地理是按比例分裂的。在商業、企業和公共部門中，它也相當平衡。因此，這只是全面的廣泛採用。再一次，我們很高興採用更先進的軟件包，因為它非常重視這一點。所以我們對此感到興奮。

Our next question comes from James Faucette with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 James Faucette。

I wanted to follow up on Vijay's question, particularly as it relates to the 9000. Some of the people that we've talked to have indicated that availability of the 9000 may be a little bit limited. I'm just wondering how and over what time frame you may be able to address that. And I guess, as part of that, what are you seeing in terms of attach rates of additional services to the 9000? And are those changing at all as the product rolls out globally?

我想跟進 Vijay 的問題，特別是與 9000 相關的問題。我們交談過的一些人表示 9000 的可用性可能有點受限。我只是想知道您可以如何以及在什麼時間範圍內解決這個問題。我想，作為其中的一部分，您對 9000 附加服務的附加率有何看法？隨著產品在全球範圍內的推出，這些是否會發生變化？

Yes. Let me just make a comment on the overall sort of strategy with the attach, and then Kelly can talk a bit about the supply. James, our original plan was to deliver a subscription model on the switch, and we've been very pleased with the attach rate and the percentage of customers in dollars in that subscription category that are actually being attached in the -- to the advanced subscription, which is -- really contains the automation and it contains the Encrypted Traffic Analytics. And we'll continue to add more and more of the Assurance stuff that we just launched 2 weeks ago. So we wanted to create real value in that subscription so that our customers would believe that it was worthwhile. And I think we're seeing exactly that. So Kelly, comments on demand and...

是的。讓我用附件對整體戰略發表評論，然后凱利可以談談供應。詹姆斯，我們最初的計劃是在 Switch 上提供訂閱模式，我們對訂閱類別中實際附加到高級訂閱的附加率和美元客戶百分比感到非常滿意，這是 - 真正包含自動化，它包含加密流量分析。我們將繼續添加越來越多我們 2 週前剛剛推出的 Assurance 內容。因此，我們希望在該訂閱中創造真正的價值，以便我們的客戶相信這是值得的。我認為我們確實看到了這一點。所以凱利，按需評論和...

Yes. No, I mean, I think I saw a couple of reports on that. I can tell you, from a demand perspective, we're very excited about how quickly this demand has been. And with any new product launch, we're going to get orders in faster than we recognize them in revenue. That's normal, and I'd say this ramp is normal as well. We did not have any significant supply chain issues of any sort or any shortages on this product line as well. So it's really more just we have tons of demand, and we're very happy to see how quickly the take-up is going.

是的。不，我的意思是，我想我看到了一些關於這方面的報導。我可以告訴你，從需求的角度來看，我們對這種需求的增長速度感到非常興奮。隨著任何新產品的推出，我們獲得訂單的速度將超過我們確認的收入。這很正常，我想說這個斜坡也很正常。我們在這條產品線上也沒有任何重大的供應鏈問題或任何短缺。所以實際上我們有大量的需求，我們很高興看到接受的速度有多快。

Your next question comes from Rod Hall with Goldman Sachs.

你的下一個問題來自高盛的 Rod Hall。

I wanted to start off by asking about the OpEx line. That line held relatively stable, even though your revenue beat our expectations. And so I just wanted to see if you could talk a little bit about how you expect that to move in the future. Do you think this should remain roughly flat on last year? Or where should we be going with OpEx? And then secondly, I want to come back to this Cat 9K supply-demand question and just see if -- is this kind of a situation -- I feel like we usually ask this about smartphone launches, but has the take-up been so fast that you couldn't keep up with demand and now you're able to meet demand? Is that kind of what you're telling us with those comments? I just want to clarify that a little bit.

我想從詢問 OpEx 系列開始。這條線保持相對穩定，即使您的收入超出了我們的預期。所以我只是想看看你是否可以談談你期望它在未來如何發展。您認為這應該與去年大致持平嗎？或者我們應該將 OpEx 帶到哪裡？其次，我想回到這個 Cat 9K 供需問題，看看是否 - 是這種情況 - 我覺得我們通常會問這個關於智能手機發布的問題，但接受度是否如此快到你跟不上需求，現在你能夠滿足需求？你的評論就是這樣告訴我們的嗎？我只想澄清一點。

Sure. So just to follow up quickly on the supply and demand. Yes, as I said, it's not a supply constraint issue at all from our supply chain or a parts shortage in any way. I mean, literally, we operate to lead times on our products. And if we get a lot of orders in the last week or 2 of a quarter when, again, as this thing is just ramping every week, we fulfill to our lead times. So there's nothing anything more than that than just we have a lot of demand for the product. So I wouldn't expect any issues as you look forward. In terms of OpEx, Rod, as you know, we are very focused on driving efficiencies. The only thing that will change in our OpEx is we are adding BroadSoft. So in our guidance, we will have obviously the revenue and the margin and the OpEx that comes with BroadSoft. But other than that, we are basically being very disciplined about where we're investing our R&D and making sure we're investing our R&D dollars in the best return project. So you're going to see it move around if we do acquisitions. But otherwise, we're going to be disciplined around that and invest when we can. And when we see margins go up, we're going to be investing as well. But otherwise, we're going to be managing that tightly like we have been.

當然。所以只是為了快速跟進供求關係。是的，正如我所說，這根本不是我們供應鏈中的供應限制問題，也不是任何方面的零件短缺問題。我的意思是，從字面上看，我們的產品交貨時間。而且，如果我們在最後一周或一個季度的兩個星期內收到大量訂單，因為這件事每週都在增加，我們會按交貨時間完成。所以除了我們對產品有很多需求之外，沒有什麼比這更重要的了。所以我不希望你期待任何問題。在運營支出方面，羅德，如你所知，我們非常注重提高效率。我們的 OpEx 唯一會改變的是我們正在添加 BroadSoft。因此，在我們的指導中，我們顯然會獲得 BroadSoft 帶來的收入、利潤和運營支出。但除此之外，我們基本上對我們投資研發的地方非常有紀律，並確保我們將研發資金投資於最佳回報項目。所以如果我們進行收購，你會看到它四處移動。但除此之外，我們將對此進行紀律處分，並在可能的時候進行投資。當我們看到利潤率上升時，我們也會進行投資。但除此之外，我們將像過去一樣嚴格管理。

Your next question comes from Paul Silverstein with Cowen and Company.

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

Kelly, I know we're going to see it when you publish the Q, but I was hoping you could tell us the rate of price erosion. And I'm assuming, from the margin structure, there wasn't a change, at least not for the worse, but let me ask the question. And I'm hoping you'll speak about -- I know you haven't gotten there yet. Chuck, you've been very candid about saying that you're late making progress with respect to the cloud. Can you give us any quantification of the growth as well as, as a percentage of revenue?

凱利，我知道當你發布 Q 時我們會看到它，但我希望你能告訴我們價格下降的速度。我假設，從保證金結構來看，沒有變化，至少沒有變壞，但讓我問這個問題。我希望你能談談——我知道你還沒有做到。 Chuck，你一直很坦率地說你在雲方面取得進展很晚。你能給我們任何增長的量化以及收入的百分比嗎？

Okay. So Paul, yes, let me address the gross margin rate question first. So yes, we're very happy with our product gross margin rate. And as you and I talk about every quarter, we look at it in terms of what we're getting from price -- what headwinds we're getting from price, offset by what productivity. I would say, this quarter, we had a very, very effective price. We still had a price headwind, but it's at the lowest that it's been in many quarters. So it's less -- it's 1.3 points the way that you'll see it in the Q, Paul. So we're very pleased with that. We haven't been in that level for quite some time. I think maybe Q1 of '17, we're close to that. But again, it shows the discipline between both our product management teams as well as the sales forces being very disciplined about discounting. So we're happy there. We also made some improvements on our productivity, where our productivity this quarter is offsetting the price erosion. So that helped a lot. And then when we get our infrastructure platforms of business going like we did, seeing that return to growth, that helps from a mix perspective. So basically, all 3 of those were very helpful to our gross margin rate this quarter. In terms of the web scale question, Paul, I mean, we don't disclose it. It's not a huge number as we break out the broader company. But I will say that we are making some traction. I don't know, Chuck, do you want to add some comments there?

好的。所以保羅，是的，讓我先解決毛利率問題。所以是的，我們對我們的產品毛利率非常滿意。當你和我談論每個季度時，我們從我們從價格中得到什麼來看待它——我們從價格中得到什麼逆風，被什么生產力抵消。我想說，這個季度，我們的價格非常非常有效。我們仍然面臨價格逆風，但它處於許多季度以來的最低水平。所以它更少 - 它是 1.3 分，就像你在 Q 中看到的那樣，Paul。所以我們對此非常滿意。我們已經有一段時間沒有達到那個水平了。我想也許 17 年第一季度，我們已經接近那個了。但同樣，這表明我們的產品管理團隊和銷售人員在打折方面非常有紀律。所以我們在那裡很開心。我們還提高了我們的生產力，本季度我們的生產力抵消了價格侵蝕。所以這很有幫助。然後當我們讓我們的業務基礎設施平台像我們一樣運行時，看到恢復增長，這從混合的角度來看是有幫助的。所以基本上，所有這三個都對我們本季度的毛利率非常有幫助。關於網絡規模問題，保羅，我的意思是，我們不會透露。當我們打破更廣泛的公司時，這並不是一個巨大的數字。但我會說我們正在產生一些牽引力。我不知道，Chuck，你想在那裡添加一些評論嗎？

Yes. Paul, I appreciate the recognition. We've been trying to be transparent about this. And we continue to make progress, and I put the comment in the opening comments for a reason that we do continue to make progress. You see the announcements we've made with Google. I said a few quarters back that we were focused on 360-degree relationships with these, and we have more to bring. And certainly, we feel good about where we are, but we still have a lot of work to do. But I would say that every quarter, we're making progress.

是的。保羅，我感謝您的認可。我們一直試圖對此保持透明。我們繼續取得進展，我將評論放在開場評論中是因為我們確實繼續取得進展。您會看到我們與 Google 一起發布的公告。我在幾個季度前說過，我們專注於與這些公司建立 360 度的關係，我們還有更多的東西可以帶來。當然，我們對自己的處境感覺良好，但我們還有很多工作要做。但我要說的是，每個季度，我們都在取得進展。

Your next question comes from Tal Liani with Bank of America.

你的下一個問題來自美國銀行的 Tal Liani。

I have a question. When Juniper discussed kind of network trends, they discussed 2 things: migration from edge routers to what they call PTX or MPLS boxes in the core, which brings down prices; and second is the introduction of routing into switching and what Juniper -- sorry, what Arista calls the 7500R. Could you please discuss the implications of these 2 trends on your switching and routing portfolios?

我有個問題。當 Juniper 討論網絡趨勢時，他們討論了兩件事：從邊緣路由器遷移到他們所謂的核心 PTX 或 MPLS 盒子，這會降低價格；其次是將路由引入交換以及瞻博網絡——抱歉，Arista 稱之為 7500R。您能否討論一下這兩種趨勢對您的交換和路由產品組合的影響？

Yes. Thanks, Tal. So we talked about this before, and this is happening in some of the big web-scale providers. And the great news for us is that we have several different product platforms that meet whatever need the customer's looking for because we have so many customers that will be looking at this transition at different paces. So for those customers that want to go now, we have platforms that address those. The NCS 5500, as an example, has gotten -- has been very well received. We've had routing capabilities in our Switching platforms. And we have our Nexus portfolio that continues to perform very well for customers who are building the data center architectures that we've been focused on for the last 2 or 3 years. So I think that what I would say in summary on this one is that we're probably best positioned to meet the customers' need regardless of which architecture they're choosing and where they are in that transition, and that would be what we would plan on doing going forward as well.

是的。謝謝，塔爾。所以我們之前談過這個，這在一些大型網絡規模的供應商中正在發生。對我們來說，好消息是我們有幾個不同的產品平台可以滿足客戶的任何需求，因為我們有這麼多客戶將以不同的速度看待這種轉變。因此，對於那些現在想去的客戶，我們有解決這些問題的平台。例如，NCS 5500 已經很受歡迎。我們的交換平台已經具備路由功能。我們的 Nexus 產品組合繼續為構建我們過去 2 或 3 年一直關注的數據中心架構的客戶提供良好的性能。所以我認為我要總結的是，無論客戶選擇哪種架構以及他們在過渡中所處的位置，我們可能最適合滿足客戶的需求，這就是我們想要的也計劃繼續前進。

Our next question comes from Jayson Noland with Baird.

我們的下一個問題來自 Jayson Noland 和 Baird。

I wanted to ask on the 9K subscription model. Chuck, interested in customer and partner feedback and what the puts and takes are there from your customer base and partners.

我想問一下 9K 訂閱模式。 Chuck，對客戶和合作夥伴的反饋以及您的客戶群和合作夥伴的意見感興趣。

On the subscription model itself?

在訂閱模式本身？

Or the Cat 9K overall, both?

還是整個 Cat 9K？

Both and how extendable that would be across the portfolio. Most of the time, we hear positive feedback from large partners, but sometimes there's a cash flow dynamic. And just wondering how that nets out.

這兩者以及它在整個投資組合中的可擴展性。大多數時候，我們會聽到大型合作夥伴的積極反饋，但有時會有現金流動態。只是想知道這是怎麼回事。

Yes, okay. So Kelly, keep me honest when we talk about how we price it. But -- so from a technological perspective, I mean, this thing, it's one product in a portfolio of switches that we've gotten out the door. So you can assume there's an architectural play we're running longer term. And when you look at the overarching automation platform, the DNA Center, which is also where the analytics come back to for our customers to drive some of these services like Assurance, we're actually quite pleased. And I think that for our customers, what we wanted to do was we wanted the base subscription plus the product to be somewhere at or slightly below what they would have paid for a previous switch with a perpetual license on it. And then our plan was to create so much new innovation -- not take stuff that they would have bought before because the customers would have felt like we were just changing our financial model at their expense. So what we wanted to put into the advanced subscription was fundamentally new technology that they have never gotten from us before, so that they could warrant the incremental spend because they're getting incremental capabilities. So it's not us taking $1 they've been spending in the past and telling them, "Now you've got to spend $1.20 a different way." It was us saying, "You spent $1 in the past. If you spend it the same way, you may only spend $0.95, but we think we're going to give you so much value that it's going to be $1.20 to $1.25." And that's been our plan. And I think that the switch itself and the upfront cost is still enough of the acquisition cost that I have not heard partners -- on this particular portion of our portfolio, I haven't heard a tremendous amount of pushback. In fact, I think our partners are thrilled that we've reignited innovation in our core portfolio and given them an opportunity to work these refreshes with our customers. Kelly?

是的，好的。所以凱利，當我們談論我們如何定價時，讓我誠實。但是 - 所以從技術角度來看，我的意思是，這件事，它是我們已經推出的一系列開關中的一種產品。所以你可以假設我們正在運行一個更長期的架構遊戲。當您查看總體自動化平台 DNA 中心時，它也是我們的客戶分析返回以推動其中一些服務（如保證）的地方，我們實際上非常高興。而且我認為，對於我們的客戶，我們想要做的是我們希望基本訂閱加上產品的價格處於或略低於他們為之前帶有永久許可的交換機支付的價格。然後我們的計劃是創造這麼多新的創新——而不是拿走他們以前會買的東西，因為客戶會覺得我們只是在以他們為代價改變我們的財務模式。所以我們想在高級訂閱中加入的是他們以前從未從我們這裡得到的根本新技術，這樣他們就可以保證增加支出，因為他們正在獲得增加的能力。所以不是我們拿他們過去花費的 1 美元告訴他們，“現在你必須以不同的方式花費 1.20 美元。”我們說，“你過去花了 1 美元。如果你以同樣的方式花錢，你可能只花 0.95 美元，但我們認為我們會給你帶來如此多的價值，它將是 1.20 美元到 1.25 美元。”這就是我們的計劃。而且我認為轉換本身和前期成本仍然足夠我沒有聽到合作夥伴的收購成本 - 在我們投資組合的這個特定部分，我沒有聽到大量的阻力。事實上，我認為我們的合作夥伴很高興我們在我們的核心產品組合中重新點燃了創新，並讓他們有機會與我們的客戶一起進行這些更新。凱莉？

Yes. I mean, the only anecdote I will add to this is I was at a customer, and I was actually at an investor meeting and their CIO was talking about the new platform and they were talking about DNA Center, which allows them to manage not just your switches, but your newer version of the enterprise routing and wireless. And the CIO had said, "I wish I had known, then I wouldn't have bought a competitor's wireless product." So again, I'm encouraged from the whole ecosystem. We're getting very positive feedback from our customers that way.

是的。我的意思是，我要補充的唯一軼事是我在一個客戶那裡，我實際上是在一個投資者會議上，他們的 CIO 在談論新平台，他們在談論 DNA 中心，這讓他們不僅可以管理您的交換機，但您的企業路由和無線的較新版本。 CIO 曾說過：“我希望我知道，那樣我就不會購買競爭對手的無線產品了。”因此，我再次受到整個生態系統的鼓舞。通過這種方式，我們從客戶那裡得到了非常積極的反饋。

Your next question comes from Ittai Kidron with Oppenheimer.

你的下一個問題來自 Ittai Kidron 和 Oppenheimer。

Just a couple of things from me. Kelly, can you tell us how much of the product revenue was recurring and number of Cisco ONE customers? And then for you, Chuck, I mean, the commercial order is up 14%. I mean, to me, that was the most interesting number. I mean, it's been a while since we've seen such strong strength in such an important and big part of your business. Can you talk about the economic backdrop? What's driving this? What is changing, ability to maintain that momentum going forward? It's really quite an impressive number.

只是我的幾件事。凱利，你能告訴我們有多少產品收入是經常性的，以及思科 ONE 客戶的數量嗎？然後對你來說，查克，我的意思是，商業訂單增加了 14%。我的意思是，對我來說，這是最有趣的數字。我的意思是，我們已經有一段時間沒有在您業務的如此重要和重要的部分看到如此強大的實力了。你能談談經濟背景嗎？是什麼推動了這個？是什麼在改變，保持這種勢頭前進的能力？這真是一個令人印象深刻的數字。

Kelly, you want to hit the stats? I know them, but I'll let you...

凱利，你想達到統計數據嗎？我認識他們，但我會讓你...

Yes, yes. So on the recurring revenue, we talked about, again, we're up to 33% recurring revenue in total. Of that -- again, on the products side of my product revenue, we are up to 13% is recurring. So again, that just continues to grow. That 13% is up over 3 points from what it was a year ago. So we continue to make progress. But 13% of our total product revenue is now recurring, of which all of our revenue 33% is.

是的是的。因此，關於經常性收入，我們再次談到，我們的經常性收入總額高達 33%。其中——再次，在我的產品收入的產品方面，我們高達 13% 是經常性的。再說一遍，這只會繼續增長。這 13% 比一年前高出 3 個百分點。所以我們繼續取得進展。但是我們產品總收入的 13% 現在是經常性的，其中我們所有的收入佔 33%。

Just a couple of -- and Cisco ONE customers.

只有幾個 - 和 Cisco ONE 客戶。

Oh, sorry, Cisco ONE customers are over 24,000 now.

哦，對不起，Cisco ONE 的客戶現在已經超過 24,000 家了。

Yes. And still on the percentage of product revenue that is coming from recurring, that was 6% just 10 quarters ago. So -- and I think the raw number was up 34% year-over-year. So we're pleased with that. And then I completely forgot the second part of the question.

是的。而且仍然來自經常性產品收入的百分比，僅在 10 個季度前為 6%。所以——我認為原始數字同比增長了 34%。所以我們對此感到滿意。然後我完全忘記了問題的第二部分。

The commercial strength.

商業實力。

Commercial strength, thank you. Yes. So we saw -- that was very consistent around the world. And you've heard us talk about, Ittai, in the past, that our commercial customers tend to be the early adopters and the customers that actually adopt the technology sooner and actually roll it out in the production sooner. Because our large enterprise customers and large service providers, they spend a fair amount of time putting it in the lab, evaluating it. As I said earlier, with the intent-based networking portfolio, they're looking at delivering the automation platforms and all those, which are just a fundamental different way of running their infrastructure. So it takes them a little longer. So largely that was the big driver, but I think it was pretty consistent across the board in the portfolio. Kelly?

商業實力，謝謝。是的。所以我們看到 - 這在世界範圍內非常一致。 Ittai，您過去曾聽過我們談論過，我們的商業客戶往往是早期採用者，也是實際較早採用該技術並較早將其投入生產的客戶。因為我們的大型企業客戶和大型服務提供商，他們花費大量時間將其放入實驗室進行評估。正如我之前所說，通過基於意圖的網絡產品組合，他們正在考慮交付自動化平台和所有這些，這只是運行其基礎設施的一種根本不同的方式。所以他們需要更長的時間。這在很大程度上是主要驅動因素，但我認為它在投資組合中的整體表現非常一致。凱莉？

Yes, it was double digit in every region, and we were up in every single product category -- sub-product category.

是的，它在每個地區都是兩位數，我們在每個產品類別——子產品類別中都有所提升。

So it was pretty comprehensive, which, I think, if we're honest, we've got some good new innovation in our portfolio. Obviously, the economy is providing a little bit of a tailwind as well. But I think our teams are executing really well.

所以它非常全面，我認為，如果我們說實話，我們的產品組合中有一些很好的新創新。顯然，經濟也提供了一點順風。但我認為我們的團隊執行得非常好。

Our next question comes from Jim Fish with Piper Jaffray and Company.

我們的下一個問題來自 Jim Fish 和 Piper Jaffray and Company。

(technical difficulty)

（技術難度）

Can you guys hear me now?

你們現在能聽到我說話嗎？

Yes.

是的。

Jim, sorry about that.

吉姆，對此感到抱歉。

My question is actually more on the capital return, and so if my math is correct on the repatriation amount of $67 billion. It looks like aftertax-wise, it will be about $57 billion. And spending sounds as if you're going to spend $25 billion on the repo and then another $13 billion over the next 2 years on the dividend. That sort of leaves you, by my math, roughly about $20 billion. How should we think about sort of M&A versus either debt paydown over the next few years or other items?

我的問題實際上更多是關於資本回報，所以如果我的計算正確的話，670 億美元的匯回金額。從稅後的角度來看，這將約為 570 億美元。支出聽起來好像你要在回購上花費 250 億美元，然後在未來兩年內再花費 130 億美元用於股息。根據我的計算，這會給你留下大約 200 億美元。我們應該如何考慮某種併購與未來幾年的債務償還或其他項目？

Yes. I mean, I think there's a couple of pieces in there. Don't forget, I still have a very good dividend that I'm paying. I'm paying a $6 billion a year on...

是的。我的意思是，我認為裡面有幾件作品。別忘了，我還有一筆非常可觀的股息要支付。我每年要支付 60 億美元...

Included the $13 billion over the next 2 years.

包括未來兩年的 130 億美元。

Did you have the $13 billion? If I look at it, I'm in a 34 net cash position right now. We've got the $66 billion we're bringing back. We've got the share buyback and the $31 billion we plan to try to utilize over the next 18 to 24 months. I'll still be in a net cash positive position of 10 to 12 without assuming anything else for acquisitions, and as you guys know, acquisitions are a critical part of our, and always has been, of our overall strategy. So I'd say the way to think about it longer term is we're going to be consistent with what we've said, right, from a capital allocation perspective. We're going to continue to be looking for the acquisitions that we can drive value and drive growth with. We're going to continue to support the dividend and drive that up with earnings, like you saw us do today. And we're going to, again, give back cash now that we have -- all of our cash basically is repatriated all the time now, we're going to be giving back to the shareholders through a healthy buyback. And I think we've got $30 billion to work through to do that. But we'll keep you updated as we go through this every quarter.

你有130億美元嗎？如果我看一下，我現在的淨現金頭寸是 34。我們已經拿到了要帶回來的 660 億美元。我們已經完成了股票回購以及我們計劃在未來 18 到 24 個月內嘗試使用的 310 億美元。在不為收購做出任何其他假設的情況下，我仍然處於 10 到 12 的淨現金正數位置，正如你們所知，收購是我們整體戰略的重要組成部分，而且一直如此。所以我想說，從長遠來看，從資本配置的角度來看，我們將與我們所說的保持一致。我們將繼續尋找可以推動價值和推動增長的收購。我們將繼續支持股息並通過收益推動股息增長，就像您今天看到的那樣。我們現在將再次返還現金——我們所有的現金現在基本上一直都在匯回，我們將通過健康的回購回饋股東。我認為我們有 300 億美元可以用來實現這一目標。但我們會在每個季度進行時向您通報最新情況。

The next one comes from Simon Leopold with Raymond James & Associates.

下一篇來自 Simon Leopold 和 Raymond James & Associates。

First, just a quick clarification. In the prepared remarks, you talked about Campus getting better. Did you indicate that it's up year-over-year? Or could you confirm if Campus switching is up year-over-year?

首先，快速澄清一下。在準備好的發言中，你談到校園越來越好。您是否表示它同比增長？或者您能否確認 Campus switching 是否同比增長？

Yes -- no. So yes, basically, Campus has been up, it's up in orders. But from revenue, we're still slightly down -- modestly down from a revenue this quarter. And we saw strong growth on the Data Center side. But yes, the order side was very, very strong on Campus. So you'll see that flush through going forward.

是的——不。所以是的，基本上，Campus 已經啟動，訂單已經啟動。但從收入來看，我們仍然略有下降——比本季度的收入略有下降。我們看到數據中心方面的強勁增長。但是，是的，校園裡的秩序方面非常非常強大。所以你會看到未來的發展。

(technical difficulty)

（技術難度）

Kim, are you there?

金，你在嗎？

Okay, one moment. Aaron Rakers, your line is open.

好的，等一下。 Aaron Rakers，您的電話已開通。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

We can now, Aaron.

我們現在可以了，亞倫。

Apologies to everybody with our technical difficulties there.

向遇到技術困難的所有人道歉。

I'm sorry about that.

對此我感到很抱歉。

No problem. I wanted to ask a question about just your Data Center segment. You talked about double-digit growth. It sounds like UCS was strong. Sounds like you're continuing to get some traction with your HyperFlex product. So kind of updates there on how many customers you have for HyperFlex and what you think -- do you think we're at a point in time where you could see some sustainable growth in that Data Center segment going forward?

沒問題。我想問一個關於您的數據中心部分的問題。你談到了兩位數的增長。聽起來UCS很強大。聽起來您的 HyperFlex 產品正在繼續獲得一些吸引力。那麼關於你有多少 HyperFlex 客戶以及你的想法的更新 - 你認為我們正處於一個你可以看到該數據中心部分未來可持續增長的時間點嗎？

Yes, I'll give you a little color on it, and then I think the number you -- I think that's correct, Kelly. We see -- we had a good couple of quarters where the team has really focused on next-generation innovation, lots of partnerships, integrated solutions with analytics and then working on some of the new capabilities around some of the Kubernetes stuff that was announced. And then HyperFlex is obviously still -- it's not a significant portion of that business, but it's growing. And I think, Kelly, 2,400 customers now, we're up to? And so we're pleased with the progress that the teams have been driving. I think that we continue to see new customer adoption. We actually see a lot of the HyperFlex customers that don't overlap with UCS. So we have that opportunity to pull those together. So pleased with how the team is executing there, for sure.

是的，我會給你一些顏色，然後我認為你的數字 - 我認為這是正確的，凱利。我們看到 - 我們有好幾個季度，團隊真正專注於下一代創新、大量合作夥伴關係、具有分析的集成解決方案，然後圍繞已宣布的一些 Kubernetes 東西開發一些新功能。然後 HyperFlex 顯然仍然存在 - 它不是該業務的重要部分，但它正在增長。我想，凱利，現在有 2,400 名客戶，我們在做什麼？因此，我們對團隊一直在推動的進步感到滿意。我認為我們會繼續看到新客戶的採用。實際上，我們看到很多與 UCS 不重疊的 HyperFlex 客戶。因此，我們有機會將它們整合在一起。當然，對團隊在那裡的執行方式感到非常滿意。

Your next question comes from Jeffrey Kvaal with Nomura Securities.

你的下一個問題來自野村證券的 Jeffrey Kvaal。

A clarification and a question first, I guess. And the clarification is, Kelly, would you mind helping us understand how much BroadSoft is adding to the upcoming quarter and maybe to the most recent one, too, depending on the specific close date? And then a bigger-picture question is the macro outlook has, in the past, been a big focus for Cisco and something that has led to more confidence or less confidence in the business outlook. I'm wondering if you could share a little bit about what you are thinking through with the global picture and how that may be helpful or maybe overheated a little bit in certain places.

我想首先要澄清和提問。需要澄清的是，凱利，你介意幫助我們了解 BroadSoft 將在下一個季度以及最近一個季度增加多少，這取決於具體的截止日期嗎？然後一個更大的問題是宏觀前景在過去一直是思科的一大關注點，這導致了對業務前景的信心增加或減少。我想知道您是否可以分享一下您對全球情況的思考，以及這可能對某些地方有何幫助或可能有點過熱。

You want to go first?

你想先走？

Yes, I'll get the BroadSoft. So yes, so in Q2, like I mentioned, we had about 80 basis points of impact from acquisitions, which did not have BroadSoft. When I gave my Q3 guidance, overall inorganic impact bumps up another 0.5 point to about 130 basis points. So a full point is from inorganic. And for BroadSoft -- just to remind everybody, when we do an acquisition and we bring it on to our balance sheet, obviously, what deferred revenue they had ends up going through purchase accounting gets a bit of a haircut. So the first quarters will be slightly less than what they were when they were a public company. But overall, it adds -- we're at 130 basis points overall at the company level.

是的，我會得到 BroadSoft。所以是的，所以在第二季度，就像我提到的那樣，我們有大約 80 個基點的收購影響，其中沒有 BroadSoft。當我給出第三季度的指導時，整體無機影響又增加了 0.5 個點，達到約 130 個基點。所以一個完整的點來自無機。對於 BroadSoft——提醒大家，當我們進行收購併將其記入資產負債表時，很明顯，他們最終通過採購會計處理的遞延收入會有所減少。因此，第一季度將略低於上市公司時的水平。但總的來說，它補充說——我們在公司層面總體上處於 130 個基點。

So Jeff, maybe I could just give you sort of a general view on what we saw around the world, and we'll talk a little bit about the sort of the overall economy. We referenced it earlier, the global strength in commercial was something that we're very happy to see. In U.S., we actually saw strength in our federal business. We haven't talked about that today. Across Europe, Middle East, Africa, positive -- everything was positive, except the SP business there. APJC was flat, but that was primarily driven by SP routing deals, largely in China and Japan. So the rest of business, we were pleased with, particularly enterprise and commercial in APJC. And then the emerging markets continued to be somewhat volatile, but I think we saw a slight growth this quarter as well. So from an overall economy perspective, look, we came out of World Economic Forum. We read and see and talk to the same customers and everyone that you do. There's a great deal of confidence right now on a global basis, probably more consistent than we've seen in a very long time. So that's good. But we also -- we believe that we also have driven innovation in our core technologies in the enterprise that we have needed for a long time. And so I think that both of those are contributing to how we feel about it, in addition to the strength across the rest of the portfolio. So we appreciate the strength in the economy, but we're also very pleased with the new innovation as well.

所以傑夫，也許我可以給你一個關於我們在世界各地看到的情況的一般看法，我們將談談整體經濟的類型。我們之前提到過，全球商業實力是我們非常高興看到的。在美國，我們實際上看到了聯邦業務的實力。我們今天還沒談這個。在歐洲、中東、非洲，一切都是積極的——除了那裡的 SP 業務之外，一切都是積極的。 APJC 持平，但這主要是由 SP 路由交易推動的，主要發生在中國和日本。因此，我們對其他業務感到滿意，尤其是 APJC 的企業和商業。然後新興市場繼續有些波動，但我認為本季度我們也看到了小幅增長。所以從整體經濟的角度來看，我們是從世界經濟論壇出來的。我們閱讀、看到並與相同的客戶以及您所做的每個人交談。現在在全球範圍內有很大的信心，可能比我們很長時間以來看到的更加一致。所以這很好。但我們也 - 我們相信我們也推動了我們長期需要的企業核心技術的創新。因此，我認為除了其他投資組合的實力之外，這兩者都對我們的感受做出了貢獻。因此，我們讚賞經濟實力，但我們也對新的創新感到非常滿意。

Your next question comes from Mark Moskowitz with Barclays.

你的下一個問題來自巴克萊銀行的 Mark Moskowitz。

A question on the revenue growth profile. Could we actually see accelerating revenue growth going into the back half of the year? Because the 9K intent-based networking product portfolio is providing for a longer evaluation and lab work by some of your bigger customers. And then once they overcome that, they actually -- you see more of a land-and-grab-expand dynamic. And then, Chuck, I had a question for you in terms of the cash that's going to be burning a hole in your pockets here even after all the different nice shareholder return initiatives you're undertaking here. Do you need to put a stamp on the company in terms of making a big transformative acquisition? Or can you do it in other ways?

關於收入增長情況的問題。我們真的能看到下半年收入加速增長嗎？因為 9K 基於意圖的網絡產品組合為您的一些大客戶提供了更長時間的評估和實驗室工作。然後一旦他們克服了這一點，他們實際上 - 你會看到更多的土地和搶奪動態。然後，查克，我有一個問題要問你，即使在你在這裡進行了所有不同的股東回報計劃之後，現金也會在你的口袋裡燒個洞。您是否需要在進行重大變革性收購方面給公司蓋上印記？或者你可以用其他方式做到嗎？

Yes. Let me address the second one first, and then I'll let Kelly talk about some of the growth -- the first question relative to growth. I think what we have said all along even before tax reform is that when it did occur, that we would leverage our ability to continue our capital strategies, which you saw today relative to buybacks as well as dividend. But we also have kept plenty of powder dry. We also have, obviously, the ability to take on debt if necessary. And we've also said that in the past, by virtue of our cash being outside the United States with access to the debt markets, we really had no impact on our ability to do M&A. And the bottom line is that we'll continue to look for any M&A targets that actually line up in an integrated way with what we're trying to do strategically. And that's just what we're looking for. I wouldn't put any parameters around the size. I think it's really around strategic fit, both from a technological perspective from what our customers are looking for and then obviously the financial implications. So Kelly, any comments on the revenue?

是的。讓我先解決第二個問題，然後讓凱利談談一些增長——第一個與增長相關的問題。我認為我們甚至在稅改之前就一直在說的是，當它真的發生時，我們將利用我們的能力繼續我們的資本戰略，你今天看到的與回購和股息相關的戰略。但我們也保持了大量的粉末乾燥。顯然，我們也有能力在必要時承擔債務。我們還說過，過去，由於我們的現金在美國境外，可以進入債務市場，我們確實對我們進行併購的能力沒有影響。最重要的是，我們將繼續尋找任何真正以整合的方式與我們正在努力做的戰略相結合的併購目標。而這正是我們正在尋找的。我不會在尺寸周圍放置任何參數。我認為這實際上是圍繞戰略契合，無論是從技術角度還是從我們的客戶正在尋找的東西，然後顯然是財務影響。凱利，對收入有何評論？

On the revenue growth, we really do only guide one quarter at a time. But again, we are very, very encouraged with what we're seeing with the current portfolio of innovation certainly in the Switching portfolio. Both the Data Center side and the Campus side are pacing well. And again, we are going to keep executing through, and we'll see how that goes. But we feel good about what we see next quarter of the 3% to 5% growth, and we're just going to keep working it from there.

關於收入增長，我們真的一次只指導一個季度。但是，我們對當前的創新產品組合肯定在交換產品組合中看到的情況感到非常非常鼓舞。數據中心端和園區端都進展順利。再一次，我們將繼續執行下去，我們會看看結果如何。但我們對下個季度 3% 至 5% 的增長感到滿意，我們將繼續努力。

Jason Ader with William Blair & Company.

Jason Ader 與 William Blair & Company。

Chuck, I was wondering what your thoughts are on the Service Provider business going forward and when do you think that might turn around and what would be the puts and takes or the drivers that could turn it around.

查克，我想知道你對服務提供商業務的未來有何看法，你認為什麼時候可能會扭轉局面，以及可能扭轉局面的因素是什麼？

Yes. I think it's a great question, Jason. And the rest of the businesses were generally pretty strong. So when we think about SP, obviously, one of the key variables for us is continuing to make the progress that we've been making in the web-scale community, and that's a key focus area for us as they're included in this business. So that's certainly number one. Number two, the consistency of CapEx coming from everyone in the space around the world will certainly be a contributor to the future performance. So that's -- I think that's the other thing that we look for. And then third, as we mentioned at the Financial Analyst Conference, we're also working on some next-generation platforms that we think can help us here as well. So if I had to just pick 3 things, those are the ones that we're focused on. And we're going to take it quarter-by-quarter and keep executing in all of those areas to try to get that business moving in the right direction.

是的。我認為這是一個很好的問題，傑森。其餘業務總體上都非常強大。因此，當我們考慮 SP 時，很明顯，我們的一個關鍵變量是繼續取得我們在網絡規模社區中取得的進展，這是我們的一個關鍵重點領域，因為它們包含在這個商業。所以這肯定是第一位的。第二，來自世界各地太空中每個人的資本支出的一致性肯定會為未來的表現做出貢獻。這就是——我認為這是我們要尋找的另一件事。然後第三，正如我們在金融分析師會議上提到的，我們還在開發一些我們認為也可以幫助我們的下一代平台。因此，如果我只能選擇 3 件事，那麼這些就是我們關注的重點。我們將逐季度進行，並在所有這些領域繼續執行，以努力使該業務朝著正確的方向發展。

So with that, I just want to close by just thanking all of you for joining us today. We really appreciate you spending time with us. Appreciate the questions. And Marilyn, I'll just turn it back to you to talk about our next call.

因此，我只想感謝大家今天加入我們。我們非常感謝您與我們共度時光。感謝這些問題。瑪麗蓮，我會把它轉回給你談談我們的下一個電話。

Great. Thanks, Chuck. Cisco's next quarterly call, which will reflect our fiscal 2018 third quarter results will be on Wednesday, May 16, 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. 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 all thank you very much for joining today's call.

偉大的。謝謝，查克。思科的下一個季度電話會議將於 2018 年 5 月 16 日星期三下午 1:30 召開，這將反映我們 2018 財年第三季度的業績。太平洋時間下午 4:30東部時間。再次，我想提醒聽眾，根據 FD 條例，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。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，我們非常感謝您參加今天的電話會議。

Thank you for participating in today's conference call. If you would like to listen to the call in its entirety, you may call 1 (800) 391-9854. For participants dialing from outside the U.S., please dial 1 (402) 220-9828. 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，可以撥打 1 (800) 391-9854。對於來自美國境外的參與者，請撥打 1 (402) 220-9828。今天的電話會議到此結束。此時您可以斷開連接。