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 2018 財年第二季財務業績電話會議。應思科系統公司的要求，今天的通話正在錄音。如果有人有異議，可以斷開連接。

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

現在我想介紹投資者關係主管瑪麗蓮莫拉 (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董事長兼首席執行官查克·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.

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廣播和幻燈片，其中包括補充資訊。

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。

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 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.

我們今天將要討論的事項包括前瞻性陳述，包括我們將為 2018 財年第三季提供的指引。它們受我們在提交給美國證券交易委員會的文件中詳細討論的風險和不確定性的影響，特別是最新的 10-K 和 10-Q 表報告，這些報告確定了可能導致實際結果與前瞻性陳述中的結果大不相同的重要風險因素。

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 now turn it over to Chuck.

現在，我將把發言權交給查克。

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.

謝謝你，瑪麗蓮，大家午安。我們度過了一個美好的季度。在第二季度，我們的營收恢復成長，我們繼續推動基於意圖的網路產品組合的發展勢頭，並看到了整個業務的強勁成長。我們在將更多業務轉向軟體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、穩健的現金流量和兩位數的非公認會計準則每股收益成長。我們清楚地看到了過去 10 個季度向您闡述的策略的成果。我們也增加了股利和股票回購授權，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，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級增長，客戶的 IT 環境正面臨著日益複雜的問題。網路對於企業的成功從未像現在這樣重要，因為它能夠簡化這種複雜性，同時支援即時明智的業務決策。這就是為什麼思科在幫助客戶的數位業務轉向高度安全和智慧的平台時能夠為未來做好充分準備。

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，讓我向您介紹我所看到的整個業務狀況，以及思科的創新如何推動整個產品組合的發展。首先，讓我們從基礎設施平台開始。我們繼續高度專注於在核心領域實現差異化創新，這使得我們本季的營收恢復成長。去年六月，我們推出了這個網絡。直觀，對網路的根本性重塑和業界領先的基於意圖的網路產品組合。兩週前，我們宣布了基於意圖的網路創新的下一階段，該創新具有覆蓋資料中心、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路數據的力量，並透過豐富的預測分析帶來更深入的洞察力和可見性。

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 交換平台的廣泛採用，因為我們的客戶群比上一季增加了一倍多，達到 3,100 多個客戶。這是我們歷史上推出的最快的新產品，也是我們過去兩年來創新的絕佳例證。

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.

當我成為執行長時，我要求我們的團隊加快該領域的創新步伐，我對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.

隨著我們的客戶越來越多地採用多雲策略，網路也是他們的關鍵推動因素。他們需要一個跨資料中心、私有雲和公有雲的統一、自動化和可擴展的環境。思科的雲端管理、分析、自動化和安全，加上微軟和Google等策略合作夥伴關係，使我們能夠很好地滿足客戶的需求。

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端為中心的軟體產品，我們最近推出了思科容器平台，以簡化使用 Kubernetes 在容器中部署雲端原生應用程式。這是我們與 Google 合作實現未來混合雲架構的重要里程碑。總的來說，我們對網路規模社群所取得的整體進展感到鼓舞。

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.

現在轉向安全性。隨著客戶不斷改進企業架構以應對普遍存在的威脅環境的挑戰，網路安全仍然是客戶最關心的問題。我們以整合架構和涵蓋網路、端點和雲端的全面最佳產品組合引領安全產業。這種方法使我們能夠共享背景、情報、可見性和政策，以減少偵測和應對威脅的時間。

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.

我們透過 Cisco Security Connector 擴展了我們的端點保護功能，這是一款獨特的安全應用程序，旨在讓企業對 iOS 裝置上的網路活動有最深層的可見性和控制力。我們與 Apple 攜手，幫助我們的共同客戶成為世界上最緊密、最協作、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、蘋果、安聯和怡安正在合作開發業界首個網路風險管理解決方案，該解決方案整合了技術、服務和增強型網路保險，以提高企業的彈性。

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.

現在轉向應用程式。應用程式的未來將釋放互聯用戶、事物和設備中數萬億 TB 數據的力量。在當今的數位世界中，我們正在執行我們的策略，將更多的業務轉向基於雲端的訂閱，並推動堆疊應用層的相關性提高，以便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 AppDynamics 分析功能在擴充功能方面取得進展。我們全球 500 強企業客戶中超過 20% 已經採用了這項技術。這是我們透過無與倫比的市場進入模式擴大收購能力的另一個例子。我們也在本月初完成了對 BroadSoft 的收購，這使我們能夠接觸到其 2000 萬的強大用戶群，並大大增強了我們基於雲端的協作訂閱組合。

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，我對我們的業務所取得的進展、我們在策略方面所取得的進展感到非常高興，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》評為美國最具永續發展能力的公司，這凸顯了我們致力於創造一個讓每個人都有機會蓬勃發展的更美好世界的堅定承諾。

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 a discussion of the impact of tax reform and then end with Q3 guidance.

謝謝，查克。我將先總結本季的財務業績，然後討論稅制改革的影響，最後給出第三季的指導。

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.

第二季表現強勁，業績超乎我們的預期。我們在許多領域都表現良好，包括良好的訂單勢頭、穩健的收入成長以及強勁的利潤率和現金流。總收入為119億美元，成長3%。非公認會計準則淨收入為31億美元，成長10%；非公認會計準則每股收益為 0.63 美元，成長 11%。經營現金流成長 8% 至 41 億美元，自由現金流成長 10%。我們持續致力於提高利潤率和獲利能力，將非公認會計準則營業利潤率提高至 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資訊。總產品收入成長了3％。基礎建設平台恢復成長，成長 2%，各項業務均表現強勁。在交換領域，我們的資料中心交換業務取得了強勁成長，而且我們的新園區交換器 Cat 9K 也呈現出強勁的發展勢頭。在 Wave 2 產品和 Meraki 的推動下，我們的無線業務也實現了強勁成長。資料中心實現了兩位數成長，這主要得益於伺服器產品和 HyperFlex 產品。由於服務提供者的持續疲軟，我們的路由產品出現小幅下滑，從而部分抵消了這些成長。

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式。應用程式由我們的統一通訊、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體業務 Jasper 和 AppDynamics。應用程式總體上漲了 6%，其中 TelePresence、會議以及 AppDynamics 表現強勁，但 UC 端點表現略顯疲軟。遞延收入也大幅增加，成長了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.

安全性提高了 6%，統一威脅和網路安全方面表現強勁。隨著我們繼續推出更多基於訂閱的軟體產品，遞延收入成長了 38%。

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

受軟體和解決方案支援成長的推動，服務收入成長了 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%.

我們將繼續轉變業務，提供更多的軟體產品，並推動更多的訂閱和經常性收入。在第二季度，我們的總收入中有 33% 來自定期優惠，比去年同期增加了 2 個百分點。訂閱收入占我們軟體收入的52%。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 19%，服務成長了 4%。遞延收入、來自我們經常性軟體和訂閱服務的產品收入為 55 億美元，成長 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%.

我們看到第二季產品訂單勢頭強勁，整體成長了5%。從地理來看，美洲成長了 6%，歐洲、中東和非洲地區成長了 6%，而亞太及日本地區則持平。新興市場整體上漲 1%，其中金磚國家加墨西哥下跌 1%。在我們的客戶領域，企業成長了 3%，商業成長了 14%，公共部門成長了 8%，服務提供者下降了 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.

從非公認會計準則獲利能力角度來看，第二季總成長率為 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.

我們在過去幾次電話會議中討論過的記憶體定價上漲繼續對我們產生負面影響，我們預計這種情況短期內還會持續下去。我們的營業利益率為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，我們發現收購對收入產生了 80 個基點的正面影響，而對我們的非 GAAP 每股收益產生了 0.01 美元的負面同比影響。

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，我們的第二季非 GAAP 每股收益為 0.63 美元，成長 11%。由於與美國稅改相關的一次性費用，GAAP EPS 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.

我們對減稅與就業法案相關的稅率降低感到非常高興。由於我們的財政年度在 7 月結束，我們今年不會實現全部收益，但會在 2019 財政年度開始實現全年收益。對於第二季度，我們的非公認會計準則稅率為 20%，以調整至我們全年預計的非公認會計準則稅率為 21%。我們目前預測 2019 財年的非 GAAP 稅率為 20%。本季度，我們的所得稅準備金支出為 111 億美元，其中包括與美國過渡稅相關的 90 億美元、外國預扣稅 12 億美元以及與較低稅率相關的淨遞延稅項資產重新計量的 9 億美元。我們第二季的 GAAP 稅率包括了這項費用的影響，而我們的非 GAAP 稅率則不包括這項費用。

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，我們持有的現金、現金等價物及投資總額為 737 億美元，其中 24 億美元在美國可用。我們計劃在 2018 財年第三季將 670 億美元的離岸資金匯回美國。第二季營運現金流為 41 億美元，成長 8%。自由現金流也非常強勁，成長 10%，達到 39 億美元。從資本配置角度來看，本季我們向股東返還了 54 億美元，其中包括 40 億美元的股票回購和 14 億美元的季度股利。

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，年增 14%。根據今天的收盤價計算，收益率約為 3.1%。我們也宣布將股票回購計畫授權金額增加 250 億美元。這使得剩餘的股票回購授權額度增加至約 310 億美元。我們預計將在未來 18 到 24 個月內利用這一點。此次大幅增加股利和額外股票回購授權加強了我們向股東返還資本的承諾，也增強了我們對持續現金流的強勁和穩定性的信心。

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，第二季表現強勁，營收成長穩健，獲利能力強勁，現金流和訂單均成長。我們繼續在策略重點上取得紮實進展，並進行關鍵投資以推動我們的長期成長。

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.

讓我重申一下我們對 2018 財年第三季的指導。本指南包含瑪麗蓮之前提到的前瞻性資訊類型。我們在第三季初完成了對 BroadSoft 的收購，此次收購的影響已計入我們的預期。

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.

我們預計收入成長率將在 3% 至 5% 之間。我們預計非公認會計準則毛利率將在 63% 至 64% 之間。非公認會計準則營業利益率預計在29.5%至30.5%之間。非公認會計準則稅務準備率預計為21%。非公認會計準則每股收益預計在 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.

現在我將主題交還給瑪麗蓮，以便我們進入問答環節。

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

坦克，凱利。金，我們開始提問吧。 （操作員指示）

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意圖的，查克和凱利，請加入，這似乎引起了你們客戶的共鳴。查克，這主要是美國現象嗎？您的海外客戶是否也在考慮基於意圖的問題？那麼，您如何看待基於意圖的投資組合捕捉呢？為什麼不將意圖擴展到更廣泛的投資組合呢？

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，維傑。首先，我們對這個基於意圖的投資組合早期獲得認可感到非常高興。我在開場白中就說過，Catalyst 9000 是我們史上成長最快的產品，這非常令人印象深刻。我想說，它在各個地理區域之間是相當平衡的，可能與他們所代表的業務百分比基本一致，但凱利馬上就可以證實這一點。我想告訴你的是，我們有 3,100 位客戶採用了這個平台。我們顯然有機會，我們將把這些功能擴展到我們其餘的產品組合中，以便我們推動自動化的客戶不僅可以推動校園交換，還可以推動路由，從而發揮 Viptela SD-WAN 的功能。我們正在將其與資料中心以及我們的安全產品組合中的 ACI 向後整合。因此，我們的策略是繼續增強客戶在所有技術領域推動意圖的能力，並透過分析所有技術來獲取背景資訊。到目前為止已經有 3,100 名客戶。我認為我們的總客戶數量遠遠超過80萬，因此我們顯然還有發展空間。而且從細分市場的角度來看，我們也看到，商業市場已經成為該技術的良好採用者。我想告訴你們的是，企業一直在評估它，因為它代表了一種不同的架構方法，在網路中內建了自動化、分析和安全性。那麼凱利，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，只是想補充一點，你是對的，我的意思是，正如你所期望的那樣，地理位置是按比例劃分的。在商業、企業和公共部門之間，也相當平衡。因此，它得到了廣泛採用。再次，我們非常高興採用更先進的軟體包，其優勢非常明顯。所以我們對此感到很興奮。

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。我們採訪過的一些人表示，9000 的供應可能有點有限。我只是想知道您如何以及在什麼時間範圍內能夠解決這個問題。我想，作為其中的一部分，您看到 9000 附加服務的附加率如何？隨著產品在全球推出，這些是否會改變？

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。讓我對附件的整體策略做一點評論，然後凱利可以談談供應問題。詹姆斯，我們最初的計劃是在交換機上提供訂閱模式，我們對附加率以及該訂閱類別中實際附加到高級訂閱的客戶百分比（以美元計算）感到非常滿意，高級訂閱實際上包含自動化功能，並包含加密流量分析。我們將繼續添加更多我們兩週前剛推出的保證內容。因此，我們希望在訂閱中創造真正的價值，以便我們的客戶相信它是值得的。我認為我們看到的正是這一點。所以凱利，按需評論…

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，我想我看到過幾份關於此的報道。我可以告訴你，從需求的角度來看，我們對這種需求的快速成長感到非常興奮。對於任何新產品的推出，我們收到訂單的速度都會比確認收入的速度快。這很正常，而且我認為這個斜坡也很正常。我們沒有遇到任何重大的供應鏈問題，該產品線上也沒有出現任何短缺。所以實際上我們有大量的需求，我們很高興看到需求成長如此之快。

Your next question comes from Rod Hall with Goldman Sachs.

您的下一個問題來自高盛的羅德霍爾。

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.

我想先詢問 OpEx 線路。儘管您的收入超出了我們的預期，但這條線仍然保持相對穩定。因此，我只是想看看您是否可以稍微談談您對未來發展的預期。您認為今年的業績應該與去年基本持平嗎？或者我們應該如何利用 OpEx？其次，我想回到 Cat 9K 的供需問題，看看是否存在這種情況——我覺得我們通常會在智慧型手機發佈時問這個問題，但其接受速度是否太快以至於你們無法滿足需求，而現在你們能夠滿足需求了？這就是你透過這些評論告訴我們的嗎？我只是想稍微澄清一下。

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。因此，只需快速跟進供需情況。是的，正如我所說，這根本不是我們的供應鏈的供應限制問題，也不是零件短缺的問題。我的意思是，實際上，我們的營運是按照產品的交付週期進行的。如果我們在一個季度的最後一周或第二週收到大量訂單，那麼由於這個訂單量每週都在增加，我們就會按照交貨時間完成訂單。所以，除了我們對產品有很大的需求之外，沒有別的了。因此，我預計您不會遇到任何問題。就營運支出而言，羅德，如您所知，我們非常注重提高效率。我們的營運支出中唯一會改變的是我們將添加 BroadSoft。因此，在我們的指導中，我們顯然會考慮 BroadSoft 帶來的收入、利潤和營運支出。但除此之外，我們基本上非常嚴格地控制研發投資方向，確保將研發資金投資於回報最好的專案。因此，如果我們進行收購，你會看到它的變化。但除此之外，我們將嚴格遵守這項規定，並在可能的情況下進行投資。當我們看到利潤率上升時，我們也會進行投資。但除此之外，我們仍將像以前一樣嚴格管理。

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

您的下一個問題來自 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，從利潤結構來看，沒有變化，至少沒有變得更糟，但讓我問一個問題。我希望你能談談——我知道你還沒有談到這一點。查克，你非常坦白說，你們在雲端運算方面進展較晚。您能否提供我們成長的具體量化數字以及收入的百分比？

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。保羅，是的，讓我先來談談毛利率問題。是的，我們對我們的產品毛利率非常滿意。正如你我每季討論的那樣，我們都會從價格的角度來看待這個問題——價格給我們帶來了哪些不利因素，而生產力又能抵消這些不利因素。我想說，本季我們的價格非常非常有效。我們仍然面臨價格阻力，但目前價格已處於多個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，保羅。所以我們對此感到非常高興。我們已經有很長時間沒有達到那個水平了。我認為也許在 2017 年第一季我們就接近這個目標了。但這再次表明我們的產品管理團隊和銷售團隊在折扣方面都非常有紀律。所以我們很高興。我們在生產力方面也取得了一些進步，本季的生產力抵消了價格下降的影響。這很有幫助。然後，當我們的基礎設施業務平台像我們之前一樣運作起來時，看到它恢復成長，從混合的角度來看，這會有所幫助。所以基本上，這三點對我們本季的毛利率都非常有幫助。關於網路規模的問題，保羅，我的意思是，我們不會透露它。如果我們從更廣泛的公司角度來看，這個數字並不是很大。但我要說的是，我們正在取得一些進展。我不知道，查克，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，我很感謝你的認可。我們一直在努力使此事透明化。我們繼續取得進展，我在開場白中提出這個評論是因為我們確實繼續取得進展。您可以看到我們與 Google 共同發布的公告。幾個季度前我曾說過，我們專注於與這些企業建立 360 度全方位的關係，我們還能帶來更多。當然，我們對目前的狀況感到滿意，但我們仍有許多工作要做。但我想說的是，每個季度我們都在取得進步。

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

您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?

我有一個問題。當 Juniper 討論網路趨勢時，他們討論了兩件事：從邊緣路由器遷移到核心中的所謂 PTX 或 MPLS 盒，從而降低價格；第二是將路由引入交換，以及 Juniper —— 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。我們之前討論過這個問題，一些大型網路規模供應商也正在發生這種情況。對我們來說，好消息是，我們擁有多個不同的產品平台，可以滿足客戶的任何需求，因為我們有很多客戶，他們會以不同的速度看待這種轉變。因此，對於那些現在想要離開的客戶，我們有一個平台可以解決這些問題。以 NCS 5500 為例，它已經獲得了非常熱烈的迴響。我們的交換平台具有路由功能。我們的 Nexus 產品組合對於那些建立我們過去 2 到 3 年一直關注的資料中心架構的客戶來說，繼續表現非常出色。所以我認為，總結一下，無論客戶選擇哪種架構、他們處於轉型的哪個階段，我們可能最有能力滿足客戶的需求，這也是我們未來計畫要做的事。

Our next question comes from Jayson Noland with Baird.

我們的下一個問題來自貝爾德的傑森諾蘭 (Jayson Noland)。

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。查克，我對客戶和合作夥伴的回饋很感興趣，以及您的客戶群和合作夥伴的付出和收穫。

On the subscription model itself?

關於訂閱模式本身？

Or the Cat 9K overall, both?

或整體而言是 Cat 9K，兩者皆是？

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.

兩者都有，並且在整個投資組合中可擴展性如何。大多數時候，我們都會聽到來自大型合作夥伴的正面回饋，但有時也會出現現金流動態。我只是想知道結果如何。

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，當我們談論如何定價時，請保持誠實。但是——從技術角度來看，我的意思是，這個東西，它是我們推出的一系列交換器中的產品。因此你可以假設我們正在進行一項長期的建築設計工作。當您查看總體自動化平台 DNA 中心時，我們實際上感到非常高興，這也是我們的客戶透過分析來推動諸如 Assurance 之類的某些服務的地方。我認為，對於我們的客戶來說，我們想要做的是，我們希望基本訂閱加上產品的價格與他們之前購買永久許可證所支付的價格相同或略低。然後我們的計劃是創造大量新的創新——不拿走他們以前會購買的東西，因為客戶會覺得我們只是以犧牲他們的利益為代價來改變我們的財務模式。因此，我們希望在高級訂閱中加入他們以前從未從我們這裡獲得過的全新技術，這樣他們就可以保證增加支出，因為他們獲得了增量功能。因此，我們不會拿走他們過去花費的 1 美元，然後告訴他們，「現在你必須以不同的方式花掉 1.20 美元。」我們說的是：「你以前花了 1 美元。如果你以同樣的方式花，你可能只花了 0.95 美元，但我們認為我們會給你很大的價值，讓你花掉 1.20 美元。我認為轉換本身和前期成本仍然足以構成收購成本，因此我還沒有聽到合作夥伴——對於我們投資組合的這個特定部分，我沒有聽到巨大的阻力。事實上，我認為我們的合作夥伴很高興我們重新點燃了核心產品組合的創新，並讓他們有機會與我們的客戶進行這些更新。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，我當時在一位客戶那裡，實際上是在一次投資者會議上，他們的首席資訊長正在談論新平台，他們正在談論 DNA Center，這使得他們不僅可以管理您的交換機，還可以管理較新版本的企業路由和無線。資訊長說：「我希望早知道這一點，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。透過這種方式，我們從客戶那裡得到了非常正面的回饋。

Your next question comes from Ittai Kidron with Oppenheimer.

您的下一個問題來自奧本海默公司的 Ittai Kidron。

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.

我只想說幾件事。 Kelly，您能告訴我們產品收入中有多少是經常性的，以及 Cisco 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，我們已經很久沒有看到你們在如此重要和龐大的業務領域中展現出如此強大的實力了。能談談經濟背景嗎？是什麼原因導致這現象的發生？哪些方面正在改變，能否維持這種發展動能？這確實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，你想了解統計數據嗎？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，我們再次討論，我們的總經常性收入高達 33％。其中 — — 再次強調，就我產品收入的產品方面而言，高達 13% 是經常性收入。所以，這種情況還會繼續成長。這一 13% 比一年前上升了 3 個百分點。因此我們不斷取得進步。但現在我們的總產品收入中有 13% 是經常性收入，其中 33% 是經常性收入。

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，抱歉，思科 ONE 客戶現在已經超過 24,000 個。

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。而來自經常性收入的產品收入百分比，10 個季度前僅為 6%。所以——我認為原始數字比去年同期增長了 34%。所以我們對此感到高興。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——這在世界各地都非常一致。 Ittai，您以前曾聽我們說過，我們的商業客戶往往是早期採用者，也是實際上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者花了大量的時間將其放入實驗室進行評估。正如我之前所說，透過基於意圖的網路產品組合，他們正在考慮提供自動化平台和所有這些，這只是運行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。所以很大程度上這是主要的驅動因素，但我認為它在整個投資組合中是相當一致的。凱莉？

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

是的，每個地區的銷售額都達到了兩位數，而且每個產品類別（子產品類別）的銷售額都有所成長。

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.

所以它是相當全面的，我認為，如果我們誠實的話，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表現得非常好。

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

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

(technical difficulty)

（技術難度）

Can you guys hear me now?

你們現在聽得到我說話嗎？

Yes.

是的。

Jim, sorry about that.

吉姆，很抱歉。

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的是關於資本回報，以及我對 670 億美元匯回金額的計算是否正確。看起來稅後金額約 570 億美元。聽起來好像你要花費 250 億美元回購，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，這樣一來，剩下的錢大約是 200 億美元。我們應該如何看待併購，還是考慮未來幾年的債務償還或其他事項？

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，我認為裡面有幾件東西。別忘了，我還有一筆非常豐厚的股利要付。我每年要付 60 億美元...

Included the $13 billion over the next 2 years.

其中包括未來兩年的 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.

你有那130億美元嗎？如果我看一下，我現在的淨現金狀況是 34。我們已經帶回了 660 億美元。我們已經進行了股票回購，並計劃在未來 18 至 24 個月內盡量利用 310 億美元。在不假設任何其他收購的情況下，我的淨現金流仍將保持在 10% 到 12% 的正值水平，正如你們所知，收購是我們整體策略的重要組成部分，而且一直以來都是如此。因此，我認為從長遠來看，我們應該堅持我們所說的，從資本配置的角度來看。我們將繼續尋找能夠推動價值和成長的收購。我們將繼續支持股息並透過獲利來提高股息，就像您今天看到的那樣。現在，我們將再次返還現金——我們的所有現金基本上都已匯回國內，我們將透過健康的回購方式回饋股東。我認為我們需要 300 億美元來實現這一目標。但我們會在每季向您通報最新進展。

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

下一個來自 Raymond James & Associates 的 Simon Leopold。

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，簡單澄清一下。在準備好的發言中，您談到了校園變得越來越好。您是否表示該數字年增了？或是您能否確認校園轉換率是否逐年上升？

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——不是。是的，基本上，校園已經開放，訂單也增加了。但從收入來看，我們仍然略有下降——比本季的收入略有下降。我們看到資料中心方面的強勁成長。但是，校園裡的秩序確實非常非常強大。因此，您會看到這種趨勢不斷向前發展。

(technical difficulty)

（技術難度）

Kim, are you there?

金，你在那裡嗎？

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

好的，請稍等。 Aaron Rakers，您的路線已開通。

Can you hear me?

你聽得到我嗎？

Yes.

是的。

We can now, Aaron.

現在我們可以了，亞倫。

Apologies to everybody with our technical difficulties there.

對於因技術問題造成的問題，我們向大家表示歉意。

I'm sorry about that.

我很抱歉。

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。我想問一個有關你們資料中心部分的問題。您談到了兩位數的成長。聽起來 UCS 很強大。聽起來您的 HyperFlex 產品正在繼續獲得一些關注。那麼，您能更新一下 HyperFlex 的客戶數量嗎？您認為我們現在是否可以看到資料中心領域未來實現永續成長？

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，我會給你一點說明，然後我認為你的數字——我認為這是正確的，凱利。我們看到——在過去的幾個季度裡，團隊真正專注於下一代創新、大量的合作夥伴關係、具有分析功能的整合解決方案，然後圍繞已宣布的一些 Kubernetes 產品開發一些新功能。然後 HyperFlex 顯然仍然 - 它不是該業務的重要組成部分，但它正在成長。凱利，我想，我們現在有 2,400 名客戶，我們能達到這個水平嗎？因此，我們對團隊所取得的進展感到滿意。我認為我們會繼續看到新客戶的採用。我們實際上看到很多 HyperFlex 客戶與 UCS 並不重疊。因此我們有機會將它們整合在一起。我當然對團隊的表現非常滿意。

Your next question comes from Jeffrey Kvaal with Nomura Securities.

您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，首先要澄清一下並提出一個問題。需要澄清的是，凱利，您介意幫助我們了解 BroadSoft 在即將到來的季度以及最近一個季度將增加多少嗎，這取決於具體的結束日期？然後，更大的問題是，宏觀前景在過去一直是思科關注的重點，並且決定了對業務前景的信心增強或減弱。我想知道您是否可以分享您對全球局勢的看法，以及這種看法在某些地方可能有何幫助，或者是否會造成一些過熱。

You want to go first?

你想先走嗎？

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，我會獲得 BroadSoft。是的，正如我所提到的，在第二季度，我們受到收購的影響約為 80 個基點，而收購不包括 BroadSoft。當我給予第三季指引時，整體無機影響又上升了 0.5 個百分點，達到約 130 個基點。因此，滿分來自無機。對於 BroadSoft，需要提醒大家的是，當我們進行收購並將其納入我們的資產負債表時，顯然，他們最終透過購買會計獲得的遞延收入會受到一定程度的削減。因此，第一季的業績將比該公司作為上市公司時略低。但整體而言，我們公司層面的整體水準為 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.

傑夫，也許我可以介紹一下我們在世界各地看到的情況，然後我們再談整體經濟的情況。我們之前提到過，我們很高興看到商業領域的全球實力。在美國，我們確實看到了聯邦業務的實力。我們今天還沒有談論這個。在歐洲、中東、非洲，一切都是積極的——除了那裡的 SP 業務。 APJC 持平，但這主要是受到 SP 路由交易的推動，主要在中國和日本。因此，我們對其餘業務感到滿意，特別是 APJC 的企業和商業業務。然後新興市場繼續有些波動，但我認為本季我們也看到了輕微的成長。因此，從整體經濟角度來看，我們走出了世界經濟論壇。我們閱讀、觀察並與相同的客戶以及與您一樣的每個人交談。目前全球範圍內的信心非常足，可能比我們很長一段時間以來看到的更加堅定。這很好。但我們也相信，我們也推動了企業長期以來所需的核心技術的創新。因此，我認為，除了投資組合其他部分的強勁表現之外，這兩者都影響了我們對此的看法。因此，我們讚賞經濟的強勁發展，但我們也對新的創新感到非常高興。

Your next question comes from Mark Moskowitz with Barclays.

您的下一個問題來自巴克萊銀行的馬克·莫斯科維茨。

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?

關於收入成長的問題。我們真的能看到下半年營收成長加速嗎？因為 9K 基於意圖的網路產品組合可以為一些較大的客戶提供更長時間的評估和實驗室工作。一旦他們克服了這一點，他們實際上——你會看到更多的佔領和掠奪擴張的動態。然後，查克，我想問你一個問題，關於現金，即使你們採取了各種各樣不錯的股東回報舉措，這些現金仍然會燒進你們的口袋。在進行重大變革性收購方面，您是否需要給公司留下深刻印象？或者你能用其他方法做到嗎？

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成長——第一個與成長相關的問題。我認為，即使在稅制改革之前我們就一直在說，當稅制改革確實發生時，我們將利用我們的能力來繼續我們的資本策略，就像你們今天看到的與回購和股利相關的策略一樣。但我們也保留了足夠的火力。顯然，如果有必要，我們也有能力承擔債務。我們也說過，過去由於我們的現金在美國境外，可以進入債務市場，因此這對我們進行併購的能力沒有影響。最重要的是，我們將繼續尋找與我們策略目標真正契合的併購目標。這正是我們所尋找的。我不會對尺寸設定任何參數。我認為這其實與策略契合有關，既從技術角度考慮客戶的需求，顯然也從財務影響角度考慮。那麼凱利，對於收入有什麼評論嗎？

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.

關於營收成長，我們確實每次只指導一個季度。但是，我們對目前的創新組合（尤其是轉換組合）感到非常鼓舞。資料中心和校園兩邊的步伐都很好。再次強調，我們將繼續執行，看看進展如何。但我們對於下一季 3% 至 5% 的成長率感到樂觀，我們將繼續努力。

Jason Ader with William Blair & Company.

威廉布萊爾公司的 Jason Ader。

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，我想知道您對未來服務提供者業務的看法，您認為什麼時候這種情況會好轉，以及扭轉這種情況的利弊或驅動因素是什麼。

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。其餘業務整體表現也相當強勁。因此，當我們考慮 SP 時，顯然，對我們來說，關鍵變數之一是繼續在網路規模社群中取得進展，這也是我們關注的一個重點領域，因為它們包含在這項業務中。所以這當然是第一位的。第二，來自世界各地該領域所有人的資本支出的一致性無疑會對未來的業績產生貢獻。所以——我認為這是我們要尋找的另一件事。第三，正如我們在金融分析師會議上提到的，我們也在開發一些我們認為可以幫助我們的下一代平台。因此，如果我必須選擇 3 件事，那麼這些就是我們關注的重點。我們將逐季度進行，並繼續在所有這些領域執行，以努力使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，最後我只想感謝大家今天的參加。我們非常感謝您抽出時間與我們相處。感謝您的提問。瑪麗蓮，我只想把話題轉回給你，討論我們的下一次通話。

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。思科的下一次季度電話會議將於 2018 年 5 月 16 日星期三下午 1:30 舉行，屆時將公佈我們 2018 財年第三季的業績。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。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會議，請撥打1 (800) 391-9854。對於從美國境外撥打電話的參與者，請撥打 1 (402) 220-9828。今天的電話會議到此結束。您現在可以斷開連線。