思科 (CSCO) 2019 Q2 法說會逐字稿

Welcome to Cisco's Second Quarter Fiscal Year 2019 Financial Results Conference Call.

歡迎參加思科 2019 財年第二季度財務業績電話會議。

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

應思科的要求，今天的會議正在錄製中。

If you have any objections, you may disconnect.

如有異議，可斷開連接。

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

現在我想介紹一下投資者關係主管 Marilyn Mora。

Ma'am, you may begin.

女士，您可以開始了。

Thanks, Michelle.

謝謝，米歇爾。

Welcome, everyone, to Cisco's Second Quarter Fiscal 2019 Quarterly Earnings Conference Call.

歡迎大家參加思科 2019 財年第二季度季度收益電話會議。

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

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.

到現在為止，您應該已經看到了我們的收益新聞稿。

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

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

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

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

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results and will discuss product results in terms of revenue and geographic and customer results in terms of product orders, unless stated otherwise.

在整個電話會議中，除非另有說明，否則我們將參考 GAAP 和非 GAAP 財務結果，並將討論收入方面的產品結果以及產品訂單方面的地理和客戶結果。

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

除非另有說明，否則本次電話會議中進行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 2019.

我們今天將討論的事項包括前瞻性陳述，包括我們將為 2019 財年第三季度提供的指導。

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

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，這些報告確定了可能導致實際結果與實際結果大不相同的重要風險因素包含在前瞻性陳述中的內容。

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

關於指南，另請參閱本次電話會議隨附的幻燈片和新聞稿以了解更多詳細信息。

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

提醒一下，除非通過明確的公開披露，否則思科不會就本季度的財務指引發表評論。

As a reminder, in Q2, on October 28, we completed the sale of our SPVSS business and, accordingly, had no revenue or expense from that business in Q2 fiscal 2019.

提醒一下，在第二季度，即 10 月 28 日，我們完成了 SPVSS 業務的出售，因此，在 2019 財年第二季度，該業務沒有收入或支出。

As such, all of the revenue, non-GAAP and product orders information we will be discussing is normalized to exclude the SPVSS business from our historical results.

因此，我們將討論的所有收入、非 GAAP 和產品訂單信息都經過標準化處理，以將 SPVSS 業務排除在我們的歷史業績之外。

We have provided historical financial information for the SPVSS business in the slides that accompany this call and on our website to help understand these impacts.

我們在本次電話會議隨附的幻燈片和我們的網站上提供了 SPVSS 業務的歷史財務信息，以幫助了解這些影響。

As a reminder, the guidance we provided during our Q1 earnings call and today's call has been normalized in the same way.

提醒一下，我們在第一季度財報電話會議和今天的電話會議中提供的指導已經以同樣的方式標準化。

I will now turn the call over to Chuck.

我現在將把電話轉給查克。

Thank you, Marilyn, and good afternoon, everyone.

謝謝瑪麗蓮，大家下午好。

This quarter, we again demonstrated that we have built a resilient growth engine that is firing on multiple cylinders.

本季度，我們再次證明我們已經建立了一個在多個氣缸上燃燒的彈性增長引擎。

Our strategy of expanding our portfolio while investing in our core markets is delivering unprecedented innovation for our customers and sustainable value for our shareholders.

我們在投資核心市場的同時擴大我們的產品組合的戰略正在為我們的客戶帶來前所未有的創新，並為我們的股東帶來可持續的價值。

We delivered revenue growth across all geographies and businesses, strong margins, double-digit non-GAAP earnings per share growth and continued solid cash generation.

我們在所有地區和業務中實現了收入增長、強勁的利潤率、兩位數的非 GAAP 每股收益增長以及持續穩健的現金生成。

We're building the technologies that enhance our customers' new digital capabilities and experiences like never before.

我們正在構建技術，以前所未有的方式增強客戶的新數字功能和體驗。

With the continued expansion to the cloud, the increasing connectivity of users and devices and the need to secure their enterprises, our customers are facing the most complex and dynamic IT environment we've ever seen.

隨著向雲的持續擴展、用戶和設備的連接性不斷增強以及保護企業安全的需求，我們的客戶正面臨著我們所見過的最複雜和動態的 IT 環境。

Cisco's intent-based networking architecture helps them navigate this complexity by enabling them to simplify, automate and securely transform their infrastructure.

思科基於意圖的網絡架構使他們能夠簡化、自動化和安全地轉換其基礎設施，從而幫助他們駕馭這種複雜性。

We are redefining every networking domain for our customers, from the campus to the wide area network, to the data center, to the cloud, delivering the agility, operational efficiency and, most importantly, the security our customers require to accelerate their digital transformations.

我們正在為我們的客戶重新定義每個網絡域，從園區到廣域網，到數據中心，再到雲，提供敏捷性、運營效率，最重要的是，我們的客戶需要加速其數字化轉型的安全性。

Only Cisco can build and deliver a multi-domain, intent-based architecture that sits at the intersection of users, devices, applications and data, that can securely connect any user on any device, on any network to any application.

只有思科能夠構建和交付位於用戶、設備、應用程序和數據交叉點的多域、基於意圖的架構，可以安全地將任何設備上的任何用戶、任何網絡上的任何用戶連接到任何應用程序。

Simply put, the Cisco of today is at the center of our customers' strategies and no longer viewed just as an enabler of those strategies.

簡而言之，今天的思科是我們客戶戰略的中心，而不再僅僅被視為這些戰略的推動者。

Now let's review some of the highlights in our key strategic growth areas.

現在讓我們回顧一下我們關鍵戰略增長領域的一些亮點。

Starting with Infrastructure Platforms.

從基礎設施平台開始。

Over the last 18 months, we've been reinventing networking from the ground up to connect every domain of the extended enterprise.

在過去的 18 個月裡，我們一直在徹底改造網絡，以連接擴展企業的每個領域。

And it's clear that the investments we've made in our core business are paying off.

很明顯，我們對核心業務的投資正在取得回報。

We are executing well with continued growth in our infrastructure portfolio and strong customer uptake of our Catalyst 9000 family of switches and our SD-WAN offerings.

隨著我們的基礎設施產品組合的持續增長以及我們的 Catalyst 9000 系列交換機和我們的 SD-WAN 產品的強勁客戶採用，我們表現良好。

We are now extending our industry-leading security and intent-based networking capabilities to new IoT Edge platforms, connecting devices throughout the enterprise with unprecedented scale, unparalleled flexibility and control.

我們現在正在將我們行業領先的安全性和基於意圖的網絡功能擴展到新的 IoT Edge 平台，以前所未有的規模、無與倫比的靈活性和控制力連接整個企業的設備。

Going forward, you'll see us continue to extend our intent-based networking innovations across the portfolio with subscription-based offers that will enable our customers to adopt a consistent architecture across every domain.

展望未來，您將看到我們繼續在整個產品組合中擴展我們基於意圖的網絡創新，提供基於訂閱的服務，這將使我們的客戶能夠在每個領域採用一致的架構。

In the Data Center, we are enabling digital enterprises to securely access their applications and their data everywhere, from private to public cloud environments as well as the Edge.

在數據中心，我們使數字企業能夠在任何地方安全地訪問他們的應用程序和數據，從私有云到公共雲環境以及邊緣。

Two weeks ago, we announced a new architecture that extends the data center to wherever the data exists and across all applications running anywhere.

兩週前，我們宣布了一種新架構，可將數據中心擴展到數據存在的任何地方，並跨所有在任何地方運行的應用程序。

We introduced several new innovations to extend our multi-cloud leadership with ACI Anywhere, HyperFlex Anywhere and cloud center capabilities.

我們引入了幾項新的創新，以通過 ACI Anywhere、HyperFlex Anywhere 和雲中心功能擴展我們的多雲領導地位。

We're also well positioned to take advantage of 100-gig and 400-gig upgrade cycles across enterprise data centers, service provider and web-scale networks.

我們還處於有利地位，可以利用跨企業數據中心、服務提供商和網絡規模網絡的 100-gig 和 400-gig 升級週期。

With global Internet traffic expected to increase threefold over the next 5 years, our customers are facing an exponential demand for capacity.

隨著全球互聯網流量預計在未來 5 年內增長三倍，我們的客戶面臨著對容量的指數級需求。

To address their need for speed and performance, we continue to innovate to drive the industry's transition to next-generation high-speed networks of 400 gig and beyond.

為了滿足他們對速度和性能的需求，我們不斷創新以推動行業向下一代 400 gig 及更高速度的高速網絡過渡。

Our acquisition of Luxtera will further augment our existing capability around silicon and optics, enabling our customers to build the fastest and most efficient networks.

我們對 Luxtera 的收購將進一步增強我們在矽和光學方面的現有能力，使我們的客戶能夠構建最快、最高效的網絡。

Now moving to our Security business.

現在轉向我們的安全業務。

We generated strong double-digit growth, reflecting the increasing demand for our market-leading solutions and the trust our customers place in us.

我們實現了強勁的兩位數增長，反映了對我們市場領先的解決方案的需求不斷增加以及客戶對我們的信任。

The attack surface is only increasing, and our comprehensive approach of integrating security into the intent-based architecture from the network to the cloud to the endpoint has been successful as our installed base continues to grow.

攻擊面只增不減，隨著我們安裝基礎的不斷增長，我們將安全性集成到從網絡到雲再到端點的基於意圖的架構中的綜合方法取得了成功。

With our industry-leading threat intelligence, we are redefining how security is delivered with our multi-domain architecture.

憑藉我們行業領先的威脅情報，我們正在重新定義如何通過我們的多域架構提供安全性。

For example, as a leader in both SD-WAN and security, Cisco provides the most robust SD-WAN platform integrated with cloud security.

例如，作為 SD-WAN 和安全領域的領導者，思科提供了與雲安全集成的最強大的 SD-WAN 平台。

This helps to simplify and secure our customers' deployment, operation and management of their environments.

這有助於簡化和保護我們客戶對其環境的部署、操作和管理。

Increasingly, we are helping to secure our customers' distributed enterprises with remote access and cloud-based security solutions.

我們越來越多地通過遠程訪問和基於雲的安全解決方案幫助保護客戶的分佈式企業。

A great example of this is Duo Security's cloud-delivered, zero-trust platform, which significantly expands our footprint in the identity and access market, bringing together user, device and application visibility and trust.

這方面的一個很好的例子是 Duo Security 的雲交付、零信任平台，它顯著擴大了我們在身份和訪問市場的足跡，將用戶、設備和應用程序的可見性和信任結合在一起。

We are seeing strong traction with Duo and good progress in scaling their capabilities while strengthening our cloud-based subscription portfolio.

我們看到 Duo 的強大吸引力以及在擴展其功能方面取得的良好進展，同時加強了我們基於雲的訂閱產品組合。

Turning to applications.

轉向應用程序。

In Collaboration, enterprise communications continue to evolve as we move to a digital, cloud-based world.

在協作中，隨著我們轉向基於雲的數字世界，企業通信不斷發展。

We are defining the future of work with next-generation collaboration platforms that have flexible, intuitive and intelligent on-premise and cloud-based solutions.

我們正在通過具有靈活、直觀和智能的本地和基於雲的解決方案的下一代協作平台來定義工作的未來。

This comprehensive approach to collaboration is a key reason why customers are adopting our market-leading portfolio, resulting in another quarter of exceptional growth.

這種全面的協作方法是客戶採用我們市場領先的產品組合的一個關鍵原因，從而實現了又一個季度的卓越增長。

Cisco provides a full suite of collaboration solutions for calling, meeting, team collaboration and care with flexible subscription offerings designed to easily integrate into customer workflows.

思科通過旨在輕鬆集成到客戶工作流程中的靈活訂閱產品，為呼叫、會議、團隊協作和護理提供了一整套協作解決方案。

With the deep integration of BroadSoft with our core capabilities, we are now the market leader for cloud-based calling and care solutions with compelling solutions for SMBs as well as enterprises globally.

通過 BroadSoft 與我們核心能力的深度整合，我們現在是基於雲的呼叫和護理解決方案的市場領導者，為全球中小企業和企業提供引人注目的解決方案。

AppDynamics is the largest APM vendor providing real-time analytics and insights across applications, infrastructure and the network, driving solid momentum with our customers.

AppDynamics 是最大的 APM 供應商，提供跨應用程序、基礎設施和網絡的實時分析和洞察力，為我們的客戶帶來強勁動力。

We have been investing in several new capabilities delivering the broadest application visibility and monitoring platform in the world.

我們一直在投資多項新功能，以提供世界上最廣泛的應用程序可見性和監控平台。

Our real-time analytics and monitoring offerings are mission-critical for our customers as they face a growing, complex application environment.

我們的實時分析和監控產品對我們的客戶來說至關重要，因為他們面臨著不斷增長的複雜應用程序環境。

To simplify and automate their IT operations, we recently launched AIOps, leveraging AI, machine learning and automation to enable improved customer experiences and greater business performance.

為了簡化和自動化他們的 IT 運營，我們最近推出了 AIOps，利用人工智能、機器學習和自動化來改善客戶體驗和提高業務績效。

In summary, we are very pleased with our strong quarter and first half performance.

總之，我們對我們強勁的季度和上半年表現感到非常滿意。

Our teams are executing incredibly well, aggressively transitioning to a software model and accelerating our pace of innovation, and I'm proud of the work they are doing.

我們的團隊執行得非常好，積極過渡到軟件模型並加快了我們的創新步伐，我為他們所做的工作感到自豪。

Our multi-domain, intent-based architecture is helping to simplify, automate and secure the complex IT environments our customers are facing, and I believe we are well positioned to play an even more strategic role in them as they embrace multi-cloud, Edge computing and digital transformation.

我們的多領域、基於意圖的架構正在幫助簡化、自動化和保護我們客戶所面臨的複雜 IT 環境，我相信我們有能力在他們擁抱多雲、Edge 時在其中發揮更具戰略意義的作用計算和數字化轉型。

The innovation our teams have been driving has now given us the strongest portfolio that we've had in a very long time, and I couldn't be more confident about our future.

我們的團隊一直在推動的創新現在給了我們很長一段時間以來最強大的產品組合，我對我們的未來充滿信心。

Kelly, I'll now turn it over to you.

凱利，我現在把它交給你。

Thanks, Chuck.

謝謝，查克。

I'll start with a summary of our financial results for the quarter, followed by the guidance for Q3.

我將從本季度的財務業績摘要開始，然後是第三季度的指導。

Q2 was a solid quarter across the business.

第二季度是整個業務的穩健季度。

We executed well with strong orders, revenue growth, margins, EPS and operating cash flow.

我們在強勁的訂單、收入增長、利潤率、每股收益和經營現金流方面表現良好。

We had continued momentum in product orders, which grew 8%.

我們的產品訂單保持增長勢頭，增長了 8%。

Total revenue was $12.4 billion, up 7%.

總收入為 124 億美元，增長 7%。

Our non-GAAP operating margin rate was 32.1%.

我們的非 GAAP 營業利潤率為 32.1%。

Non-GAAP net income was $3.3 billion, up 6%.

非 GAAP 淨收入為 33 億美元，增長 6%。

And non-GAAP EPS was $0.73, up 16%.

非 GAAP 每股收益為 0.73 美元，增長 16%。

Let me provide some more detail on our Q2 revenue.

讓我提供更多關於我們第二季度收入的細節。

Total product revenue was up 9% to $9.3 billion.

產品總收入增長 9% 至 93 億美元。

Infrastructure Platforms grew 6%.

基礎設施平台增長 6%。

Switching had another great quarter with double-digit growth in the campus, driven by the continued ramp of the Cat 9K.

在 Cat 9K 的持續增長的推動下，Switching 又迎來了一個偉大的季度，在校園內實現了兩位數的增長。

Wireless also had double-digit growth with the strength of our Wave 2 offerings and Meraki.

憑藉我們的 Wave 2 產品和 Meraki 的實力，無線業務也實現了兩位數的增長。

Routing declined due to weakness in service provider.

由於服務提供商的疲軟，路由下降。

We also saw a decline in Data Center servers, partially offset by strength in hyperconverged.

我們還看到數據中心服務器的下降，部分被超融合的優勢所抵消。

Applications was up 24% with growth across all the businesses.

隨著所有業務的增長，應用程序增長了 24%。

We saw strong growth in Unified Communications, TelePresence and AppDynamics.

我們看到了統一通信、TelePresence 和 AppDynamics 的強勁增長。

Security was up 18% with strong performance in identity and access, advanced threat and unified threat.

安全性增長了 18%，在身份和訪問、高級威脅和統一威脅方面表現強勁。

Service revenue was up 1%, driven by Software and Solution Support.

在軟件和解決方案支持的推動下，服務收入增長了 1%。

We continue to transform the business, delivering more software offerings and driving more subscriptions.

我們繼續轉變業務，提供更多軟件產品並推動更多訂閱。

Software subscriptions were 65% of total software revenue, up 10 points year-over-year.

軟件訂閱佔軟件總收入的 65%，同比增長 10 個百分點。

When we look at the impact of acquisitions on our Q2 results year-over-year, there was 140 basis point positive impact on revenue.

當我們查看收購對我們第二季度業績的同比影響時，對收入產生了 140 個基點的積極影響。

We saw strong momentum in Q2 with total products orders growing 8%.

我們在第二季度看到了強勁的勢頭，總產品訂單增長了 8%。

Looking at the geographies.

看著地理。

Americas grew 7%, EMEA was up 11% and APJC was up 6%.

美洲增長 7%，EMEA 增長 11%，APJC 增長 6%。

Total emerging markets was up 6%, with the BRICS plus Mexico up 2%.

新興市場總量增長 6%，其中金磚國家和墨西哥增長 2%。

In our customer segments, enterprise was up 11%, commercial grew 7%, public sector was up 18% and service provider was down 1%.

在我們的客戶群中，企業增長 11%，商業增長 7%，公共部門增長 18%，服務提供商下降 1%。

From a non-GAAP profitability perspective, total Q2 gross margin was 64.1%.

從非 GAAP 盈利能力的角度來看，第二季度總毛利率為 64.1%。

In terms of the bottom line from a GAAP perspective, Q2 net income was $2.8 billion and EPS was $0.63.

從 GAAP 的角度來看，第二季度淨收入為 28 億美元，每股收益為 0.63 美元。

We ended Q2 with total cash, cash equivalents and investments of $40.4 billion.

我們在第二季度末的現金、現金等價物和投資總額為 404 億美元。

Q2 operating cash flow was $3.8 billion, down 7%.

第二季度經營現金流為 38 億美元，下降 7%。

We paid $750 million for the first transition tax payment related to the Tax Cuts and Jobs Act.

我們為與《減稅和就業法》相關的第一筆過渡稅支付了 7.5 億美元。

Normalized for that tax payment, operating cash flow was up 12%.

將該稅款標準化後，經營現金流增長了 12%。

From a capital allocation perspective, we returned $6.5 billion to shareholders during the quarter that was comprised of $5 billion of share repurchases and $1.5 billion for our quarterly dividend.

從資本配置的角度來看，我們在本季度向股東返還了 65 億美元，其中包括 50 億美元的股票回購和 15 億美元的季度股息。

Today, we also announced a $0.02 increase to the quarterly dividend to $0.35 per share, up 6% year-over-year.

今天，我們還宣布將季度股息增加 0.02 美元至每股 0.35 美元，同比增長 6%。

This represents a yield of approximately 3% based on today's closing price.

根據今天的收盤價，這意味著收益率約為 3%。

We also announced a $15 billion increase to the authorization of the share repurchase program.

我們還宣布增加 150 億美元的股票回購計劃授權。

This raises the remaining share repurchase authorization to approximately $24 billion.

這將剩餘的股票回購授權提高到約 240 億美元。

This 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.

這一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。

We continue to invest organically and inorganically in our innovation pipeline.

我們繼續對我們的創新管道進行有機和無機投資。

During the quarter, we announced the acquisition of Luxtera, a company focused on silicon photonics, which closed on February 6.

本季度，我們宣布收購 Luxtera，這是一家專注於矽光子學的公司，收購於 2 月 6 日完成。

To summarize, we had a great Q2.

總而言之，我們有一個很棒的第二季度。

We executed well, with strong top line growth and profitability.

我們執行良好，收入增長強勁，盈利能力強。

We're seeing the returns on the investments we're making in innovation and driving the shift to more software and subscriptions, driving long-term growth and shareholder value.

我們正在看到我們在創新方面的投資回報，並推動向更多軟件和訂閱的轉變，從而推動長期增長和股東價值。

Let me reiterate our guidance for the third quarter of fiscal '19.

讓我重申我們對 19 財年第三季度的指導。

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

本指南包括 Marilyn 之前提到的前瞻性信息類型。

Note again that we have normalized our third quarter guidance to exclude the SPVSS business for Q3 of fiscal '18, which we divested on October 28, 2018.

再次請注意，我們已將第三季度指導規範化，以排除我們於 2018 年 10 月 28 日剝離的 18 財年第三季度的 SPVSS 業務。

We have provided historical financial information for the SPVSS business in the slides that accompany this call.

我們在本次電話會議隨附的幻燈片中提供了 SPVSS 業務的歷史財務信息。

We expect revenue growth in the range of 4% to 6% year-over-year.

我們預計收入同比增長 4% 至 6%。

We anticipate the non-GAAP gross margin rate to be in the range of 64% to 65%.

我們預計非美國通用會計準則毛利率將在 64% 至 65% 的範圍內。

The non-GAAP operating margin rate is expected to be in the range of 31% to 32%, and the non-GAAP tax provision rate is expected to be 19%.

非 GAAP 營業利潤率預計在 31% 至 32% 之間，非 GAAP 稅收撥備率預計為 19%。

Non-GAAP earnings per share is expected to range from $0.76 to $0.78.

非 GAAP 每股收益預計在 0.76 美元至 0.78 美元之間。

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

我現在把它轉回 Marilyn，這樣我們就可以進入問答環節。

Thanks, Kelly.

謝謝，凱利。

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

米歇爾，讓我們開始提問吧。

(Operator Instructions) I'll now turn it over to you, Michelle, to start the queuing process.

（操作員說明）我現在將它交給你，米歇爾，開始排隊過程。

Jim Suva from Citi Global Markets.

來自花旗全球市場的 Jim Suva。

When we look at a couple of dynamics, whether it be tariffs, government shutdown or maybe even weather for installation and shipping your product around the whole U.S., any thoughts around how we should think about those items, how they played out and in your forecast of what's built in?

當我們查看一些動態時，無論是關稅、政府關閉，還是可能在整個美國安裝和運輸您的產品的天氣，關於我們應該如何考慮這些項目的任何想法，它們如何發揮作用以及您的預測內置的是什麼？

Jim, this is Chuck.

吉姆，這是查克。

Look, first of all, I would tell you that we -- it certainly is one of the more complex macro, geopolitical environments that I think we've seen in quite a while with all the different moving parts.

看，首先，我會告訴你，我們 - 它肯定是更複雜的宏觀地緣政治環境之一，我認為我們已經在很長一段時間內看到了所有不同的移動部分。

But to be honest, from the first day of the quarter to the last day of the quarter, we saw 0 difference.

但老實說，從本季度的第一天到本季度的最後一天，我們看到了 0 差異。

We saw very steady demand throughout the quarter and just saw great execution by our teams.

我們在整個季度看到了非常穩定的需求，並且看到了我們團隊的出色執行力。

When we look out ahead at the guide, there's -- we're looking at the conditions as they exist today.

當我們向前看指南時，我們會看到今天存在的情況。

And so far, we've been able to navigate all the different dynamics, I think, pretty well.

到目前為止，我認為我們已經能夠很好地駕馭所有不同的動態。

We're pretty proud of what the teams have accomplished.

我們為團隊所取得的成就感到非常自豪。

Vijay Bhagavath from Deutsche Bank.

德意志銀行的 Vijay Bhagavath。

My question, Chuck and Kelly, would like to get your thoughts into the secular growth portfolio you have around AppDynamics, Meraki, Viptela, Duo, et cetera.

Chuck 和 Kelly，我的問題是想了解您對 AppDynamics、Meraki、Viptela、Duo 等長期增長投資組合的看法。

Are these assets starting to drive new sales opportunities, perhaps new product refresh for the core business?

這些資產是否開始推動新的銷售機會，也許是核心業務的新產品更新？

Or are these mostly like stand-alone, like they're growing in their respective areas?

或者它們大多是獨立的，就像它們在各自的領域中成長一樣？

Thanks, Vijay, and thanks for the nice comment.

謝謝 Vijay，也謝謝你的精彩評論。

If I look at the different acquisitions, if you look at, let me just pick a few, like BroadSoft and the integration that's been done with the Collaboration portfolio, that clearly enhances the overall architecture and, I would say, has a positive impact on the total business.

如果我看一下不同的收購，如果你看，讓我只挑幾個，比如 BroadSoft 和與 Collaboration 產品組合完成的集成，這明顯增強了整體架構，我想說，對總業務。

As you look at things like Meraki and as we continue to do tighter integration between our -- the Meraki portfolio and the classic Cisco portfolio and we bring together the automation strategies on each side, it gives customers the ability to deploy a hybrid model with both of those technology areas, which I think is a benefit that many of our customers have.

當你看到像 Meraki 這樣的東西時，當我們繼續在我們的 Meraki 產品組合和經典的思科產品組合之間進行更緊密的集成時，我們將每一側的自動化策略結合在一起，它使客戶能夠部署混合模型這些技術領域，我認為這是我們的許多客戶所擁有的好處。

They might want the traditional Cisco portfolio in their core headquarters buildings, and they might like Meraki out in their retail outlets or in small branches.

他們可能希望在他們的核心總部大樓中使用傳統的思科產品組合，並且他們可能希望在他們的零售店或小型分支機構中使用 Meraki。

So that's very positive.

所以這是非常積極的。

When you think about an acquisition like Duo, that's clearly part of an overarching security architecture that, clearly, our customers are buying into, as you can see from the 18% growth, which is like the fastest growth rate we've seen in Security in many years.

當你考慮像 Duo 這樣的收購時，這顯然是總體安全架構的一部分，顯然，我們的客戶正在購買，正如你從 18% 的增長中看到的那樣，這就像我們在安全領域看到的最快增長率在很多年裡。

So it's -- I think it depends on the acquisition, but most of them are pulling forward an architecture that they're associated with.

所以它 - 我認為這取決於收購，但他們中的大多數人都在推動與他們相關的架構。

And just to add, I think we're also embedding it in our products, right?

補充一下，我認為我們也將其嵌入到我們的產品中，對嗎？

And you can look at like when we acquired Stealthwatch, it's now part of what we're doing with the Cat 9K; or what we announced with Umbrella being in part of other products.

你可以看看當我們收購 Stealthwatch 時，它現在是我們使用 Cat 9K 所做工作的一部分；或者我們宣布的 Umbrella 是其他產品的一部分。

So I think it's a combination of both.

所以我認為這是兩者的結合。

Yes.

是的。

And bringing together like some of the traditional technologies -- I mean, thinking about bringing together ISR with Viptela, with Umbrella, to create this new secure SD-WAN offering, I mean, that's a unique capability that only we have.

像一些傳統技術一樣匯集在一起——我的意思是，考慮將 ISR 與 Viptela 和 Umbrella 結合在一起，以創建這種新的安全 SD-WAN 產品，我的意思是，這是只有我們擁有的獨特能力。

And look at taking some of the security technologies like advanced malware and moving them into the Meraki portfolio, and those are obviously key differentiators for us.

看看採用一些安全技術，如高級惡意軟件，並將它們轉移到 Meraki 產品組合中，這些顯然是我們的關鍵差異化因素。

Rod Hall with Goldman Sachs.

羅德霍爾與高盛。

I guess I wanted to start off with the public sector side of things.

我想我想從公共部門方面的事情開始。

The order trajectory there improved a lot to 18%, and yet we're all sitting here expecting U.S. Fed to be weak.

那裡的訂單軌蹟有很大改善，達到 18%，但我們都坐在這裡期待美聯儲疲軟。

So I wonder if you could sort of comment on the U.S. Fed impact on the current quarter and then why we're seeing such a big order acceleration there.

所以我想知道你是否可以評論一下美聯儲對當前季度的影響以及為什麼我們在那裡看到如此大的訂單加速。

And then I have a follow-up.

然後我有一個後續行動。

Yes.

是的。

I would tell you -- I think, first of all, it's important to understand the dynamics of the shutdown that we experienced.

我會告訴你 - 我認為，首先，重要的是要了解我們所經歷的關閉的動態。

It was really -- only about 25% of the government agencies were impacted.

確實 - 只有大約 25% 的政府機構受到影響。

And some of the groups that we do business with, when they had a sense the shutdown might be coming, some of them pulled some orders ahead and actually got them in the system.

和我們有業務往來的一些團體，當他們意識到可能會關閉時，他們中的一些人提前拉了一些訂單，實際上讓他們進入了系統。

So I will tell you that we saw minimal impact.

所以我會告訴你，我們看到的影響很小。

Our U.S. federal business, even with the shutdown, grew double digits, which is, I think, a testament to our team and the relationships and the execution.

我們的美國聯邦業務，即使在關閉的情況下，也增長了兩位數，我認為，這證明了我們的團隊、關係和執行力。

And so -- and around the world, when you look at our business in Europe, I mean, you look at the -- I mean, think about the 11% growth in EMEA.

所以——在世界各地，當你看我們在歐洲的業務時，我的意思是，你看——我的意思是，想想歐洲、中東和非洲地區 11% 的增長。

When we talk to our team there, a lot of that is public sector oriented, same across the world.

當我們與那裡的團隊交談時，很多都是面向公共部門的，全世界都一樣。

We just saw -- obviously, at 18% growth in our public sector business around the world, that's obviously -- the technology is resonating in that vertical.

我們剛剛看到 - 顯然，我們在全球的公共部門業務增長了 18%，這很明顯 - 該技術正在該垂直領域引起共鳴。

That's for sure.

這是肯定的。

Okay, great, Chuck.

好的，很好，查克。

Appreciate that.

感謝。

And then I wanted to -- on the follow-up, just on the enterprise order rate.

然後我想 - 關於後續行動，只是關於企業訂單率。

I mean, that was, I think, 15% last quarter.

我的意思是，我認為上個季度是 15%。

It's decelerated a little bit to 11%.

它略微減速至 11%。

Just comment on what you're seeing there.

只是評論你在那裡看到的東西。

I mean, you've talked before about last year being such a strong year.

我的意思是，你之前說過去年是非常強勁的一年。

And I'm just curious if you think that's just kind of a one-quarter thing or is that a trajectory we would expect to continue?

我很好奇你是否認為這只是四分之一的事情，或者這是我們希望繼續的軌跡？

Rod, I think that as I think about the enterprise and you look at our portfolio right now, we really line up with -- whether our customers are looking to strategies to drive revenue and looking at how our collaboration architecture or our location analytics in retail outlets can help them, or they're looking at how do they reduce their operating expenses and simplify and the automation we're driving in the networking space, the SD-WAN solutions, they're just -- these are all really core to what our enterprise customers are looking for.

Rod，我認為當我考慮企業時，你現在看看我們的產品組合，我們真的很一致——我們的客戶是否正在尋求推動收入的戰略，以及我們的協作架構或我們在零售業中的位置分析網點可以幫助他們，或者他們正在研究如何減少運營費用並簡化我們在網絡空間中推動的自動化，SD-WAN 解決方案，他們只是 - 這些都是真正的核心我們的企業客戶正在尋找什麼。

And we've talked about over the last several calls that this Cat 9K, the early phases of that, we're still in the very early innings.

我們在過去的幾個電話中談到了這個 Cat 9K，它的早期階段，我們還處於非常早期的階段。

And now we've deployed a wireless portfolio that fits within that architecture, the SD-WAN solutions are going to be integrated into that architecture.

現在我們已經部署了適合該架構的無線產品組合，SD-WAN 解決方案將集成到該架構中。

And the customers are still on the very front end of deploying all this technology.

客戶仍然處於部署所有這些技術的最前端。

So we feel good about where we are.

所以我們對自己的處境感覺良好。

And we think that assuming we continue to execute well on that technology and that portfolio, the benefits to the customer are such that I think that we should have a pretty successful run ahead of us in our enterprise accounts, assuming we continue to execute.

我們認為，假設我們繼續在該技術和該產品組合上執行良好，那麼對客戶的好處是，我認為我們應該在我們的企業賬戶中取得相當成功的運行，假設我們繼續執行。

Paul Silverstein with Cowen and Company.

考恩公司的保羅西爾弗斯坦。

I've got 2 related questions.

我有 2 個相關問題。

One, my customary, what's your rate of price erosion?

第一，我的習慣，你的價格侵蝕率是多少？

And Kelly, in connection with that, if you could talk about gross margin drivers looking forward.

凱利，與此相關，如果你能談談未來的毛利率驅動因素。

And related to that, if I do the math right, you all did $4.5 billion of operating cash flow if you exclude the $800 million in connection with that onetime tax item.

與此相關的是，如果我計算正確，如果排除與該一次性稅項相關的 8 億美元，你們所有人的運營現金流為 45 億美元。

That's a record by over $400 million or 10% of what historically is not your strongest cash flow quarter.

這是創紀錄的超過 4 億美元或 10% 的歷史上不是你最強的現金流季度。

The question is, is that a new normal?

問題是，這是新常態嗎？

Or were there other extraordinary items in that number?

還是那個數字中還有其他非凡的物品？

Yes.

是的。

So just on the cash, there's nothing extraordinary in that.

所以就現金而言，沒有什麼特別之處。

And again, that $750 million that we paid out, that's -- we'll be paying that -- those charges escalates in the later years over the next 8 years, right?

再一次，我們支付的那 7.5 億美元，那是——我們將支付——這些費用在未來 8 年的後期會升級，對吧？

That was just part of that transition tax.

那隻是過渡稅的一部分。

Besides that, no, there's no extraordinary.

除此之外，不，沒有什麼特別的。

Remember, in Q1, we had the extraordinary $400 million payout from Arista, but there's nothing in Q2 besides that.

請記住，在第一季度，我們從 Arista 獲得了 4 億美元的非凡支出，但在第二季度除此之外什麼都沒有。

Paul, to your question on price.

保羅，關於你的價格問題。

This quarter, it was a 1 point impact on gross margin.

本季度，這對毛利率產生了 1 個百分點的影響。

Teams did a good job on that.

團隊在這方面做得很好。

And so that's in that range.

所以這是在那個範圍內。

And then if I go back to the gross margin drivers, like we talked about on last earnings call, it's been the same drivers, right?

然後，如果我回到毛利率驅動因素，就像我們在上次財報電話會議上談到的那樣，它是相同的驅動因素，對吧？

We still had a definitely negative headwind for the last quarter here in Q2 from DRAM and component costs.

由於 DRAM 和組件成本，我們在第二季度的最後一個季度仍然面臨絕對不利的不利因素。

But as you look in our guide forward, you'll notice that the guide went up another 0.5 point because, like I expected last quarter and what we're seeing, the DRAM turns into a tailwind in Q3 and Q4.

但是當您查看我們的前瞻性指南時，您會注意到該指南又上升了 0.5 個百分點，因為正如我上個季度所預期的以及我們所看到的那樣，DRAM 在第三季度和第四季度變成了順風。

So that's why you see that tick up in the guide on the gross margin.

所以這就是為什麼你會在毛利率指南中看到這一點。

So the drivers we had are really just again the headwinds being the component costs in Q2, that turns around.

因此，我們所擁有的驅動因素實際上又是第二季度的組件成本的不利因素，而這種情況出現了逆轉。

And then we still have a little bit of a drag on our rate for the -- as we continue to ramp the Cat 9K portfolio for that deferral impact.

然後我們仍然對我們的利率有一點拖累——因為我們繼續增加 Cat 9K 產品組合以應對延期影響。

But otherwise, we're executing well.

但除此之外，我們執行得很好。

Kelly, I trust the ongoing shift to software has a -- will have a benefit over time?

凱利，我相信持續向軟件的轉變有一個——隨著時間的推移會有好處嗎？

Yes.

是的。

I mean, we're seeing that.

我的意思是，我們看到了。

I mean, that's what's offsetting a lot of these headwinds on the component stuff, right?

我的意思是，這就是抵消了組件方面的許多不利因素的原因，對吧？

So yes, that will continue, which is, again, why you continue to see them inch up.

所以是的，這將繼續下去，這又是為什麼你繼續看到他們一點點上升。

So when the DRAM -- which has been a significant headwind for us the last bunch of quarters, we'll continue to see that benefit us.

因此，當 DRAM——在過去幾個季度對我們來說是一個重大的逆風時，我們將繼續看到它對我們有利。

Ittai Kidron from Oppenheimer & Co.

來自 Oppenheimer & Co. 的 Ittai Kidron

Maybe -- I have a 2-part question.

也許——我有一個由兩部分組成的問題。

I guess, Chuck, trying to kind of dig in to what Rod was asking before.

我想，Chuck，試圖深入了解 Rod 之前提出的問題。

You're running multiple product cycles in multiple product areas.

您在多個產品領域運行多個產品週期。

But if you had to kind of put it all together across your entire customer base, in what phase of the adoption are we, embrace for the customers of this new portfolio?

但是，如果您必須在整個客戶群中將它們放在一起，那麼我們在採用的哪個階段接受這個新產品組合的客戶？

Are we early cycle, mid-cycle?

我們是早期週期還是中期週期？

Help me think about that.

幫我考慮一下。

Okay.

好的。

Yes, Ittai, thank you.

是的，Ittai，謝謝你。

Look, here's the thing I think it's important to understand.

看，這是我認為理解的重要內容。

We have been working over the years on building best-of-breed technology for what we talk about relative to domains with our customers.

多年來，我們一直致力於為我們與客戶談論的與域相關的內容構建最佳技術。

So we've been building the best data center switching portfolio, the best campus switching portfolio, the best campus wireless portfolio.

因此，我們一直在構建最好的數據中心交換產品組合、最好的園區交換產品組合、最好的園區無線產品組合。

Over the last 3 years, what we've done is we've built an automation architecture within a domain, okay?

在過去的 3 年裡，我們所做的是在域內構建了一個自動化架構，好嗎？

So we built ACI in the data center.

所以我們在數據中心構建了 ACI。

We built DNA in the campus.

我們在校園裡建立了 DNA。

We've got the SD-WAN platform in the branch.

我們在分支機構中擁有 SD-WAN 平台。

We've got a security control center that actually automates a security architecture.

我們有一個安全控制中心，它實際上使安全架構自動化。

And now what we're doing is we're beginning to bring those together.

現在我們正在做的是開始將它們整合在一起。

So when you hear us talk about multidomain, it means that we're giving our customers the ability to drive automation across all of those domains.

因此，當您聽到我們談論多領域時，這意味著我們正在為我們的客戶提供跨所有這些領域推動自動化的能力。

So -- and you're going to see even more announcements over the next few months relative to extending that.

所以——在接下來的幾個月裡，你會看到更多關於延長它的公告。

We extended it into the IoT architecture.

我們將其擴展到物聯網架構中。

So think about an application that's either running in the cloud or running in the data center that requires a certain policy that gets deployed across all those domains, and I think that's the thing that our customers are really excited about.

因此，考慮一個在雲中運行或在數據中心運行的應用程序，它需要跨所有這些域部署的特定策略，我認為這才是我們的客戶真正興奮的事情。

So now where are we?

那麼現在我們在哪裡？

We're still early.

我們還早。

I mean, it's -- I would still say we're in the early innings.

我的意思是，它是——我仍然會說我們處於早期階段。

I mean, this transition, if you look back at the number of years that customers were buying and sweating a lot of this infrastructure, then that sort of the base that we have ahead of us to actually move into this new architecture.

我的意思是，這種轉變，如果你回顧一下客戶購買和耗費大量這種基礎設施的年數，那麼我們就擁有了真正進入這種新架構的基礎。

So I would say it's still very early across all those areas that I just described.

所以我想說，在我剛才描述的所有這些領域，現在還很早。

That's great.

那太棒了。

And then just as a follow-up.

然後作為後續行動。

I didn't catch the data center switch comment.

我沒有聽到數據中心交換機的評論。

Was there one or that's -- can you give us some color on where you stand there?

有沒有一個或那個——你能給我們一些關於你站在那裡的顏色嗎？

And how do you envision 400 making its impact there, time line-wise?

你如何設想 400 在那裡產生影響，時間線方面？

Yes.

是的。

I think what we gave -- Kelly, you gave a broader Switching number, I think.

我想我們給出的——凱利，我想你給出了一個更廣泛的轉換數字。

We said overall Switching business was up double digits.

我們說整體交換業務增長了兩位數。

So I mean, it's a pretty big business.

所以我的意思是，這是一項相當大的業務。

So we are pleased with that.

所以我們對此感到滿意。

And on the 400 gig, right, I mean...

在 400 場演出中，對，我的意思是……

And the 400 gig, yes, I'll tell you, we've got a lot of work going on in both our data center switching portfolio, where we're in some early field trials, as well as in our networking portfolio with some of the work that's going on there.

400 演出，是的，我會告訴你，我們在我們的數據中心交換產品組合中有很多工作正在進行，我們正在進行一些早期的現場試驗，以及我們的網絡產品組合中有一些那裡正在進行的工作。

And we believe that sometime middle of this year, we'll begin to see broad-based deployments.

我們相信，在今年年中的某個時候，我們將開始看到基礎廣泛的部署。

We're happy with that.

我們對此很滿意。

I think there's a couple of key differentiators for us, Ittai.

Ittai，我認為我們有幾個關鍵的差異化因素。

We build our own silicon.

我們建立自己的矽。

The Luxtera acquisition is going to bring the optics into that for us as well.

對 Luxtera 的收購也將為我們帶來光學技術。

Instead of us having to go out and procure the optics, we'll be able to more tightly integrate them.

我們不必出去採購光學器件，而是能夠更緊密地集成它們。

The whole intent-based architecture we have and the ability for us with our silicon to do real-time packet examinations for the customers and let them look at packet flows dynamically, there's a lot of differentiators, including a lot of power consumption advantages we think we're going to have.

我們擁有的整個基於意圖的架構以及我們使用我們的芯片為客戶進行實時數據包檢查並讓他們動態查看數據包流的能力，有很多差異化因素，包括我們認為的很多功耗優勢我們將會有。

So sort of middle of this year, we'll begin to see if all that comes to fruition, but I think the teams are in a good spot.

所以今年年中，我們將開始看看是否所有這些都取得了成果，但我認為這些團隊處於有利地位。

Samik Chatterjee from JPMorgan.

摩根大通的 Samik Chatterjee。

Chuck, I just wanted to check with you how -- what you're seeing in terms of momentum in the emerging countries.

查克，我只是想和你核實一下——你在新興國家的勢頭方面看到了什麼。

I believe, last quarter, you had very solid momentum in countries like India.

我相信，上個季度，你在印度等國家的勢頭非常強勁。

Are you seeing the stronger dollar catch up to them in terms of how -- what their appetite is in terms of IT spend?

您是否看到美元走強在如何 - 他們對 IT 支出的興趣方面趕上了他們？

If you can just help us with that.

如果你能幫我們解決這個問題。

Well, I think we -- we gave that number, right, the emerging markets?

好吧，我想我們 - 我們給出了那個數字，對吧，新興市場？

Yes, order's up 6%.

是的，訂單增加了 6%。

Yes, up 6% on orders.

是的，訂單增長 6%。

And BRICM was up 2%.

BRICM 上漲了 2%。

BRICM was up 2%.

BRICM 上漲 2%。

So I think 6% in light of what we've heard from others around that space.

因此，根據我們從該領域其他人那裡聽到的消息，我認為是 6%。

And historically, what we've seen is when interest rates in the U.S. start rising, it creates challenges in emerging countries.

從歷史上看，我們看到的是，當美國的利率開始上升時，它會給新興國家帶來挑戰。

And I think if you press Kelly, she'd probably tell you that currency was a slight headwind for us as well.

而且我認為，如果你向凱利施壓，她可能會告訴你，貨幣對我們來說也是一個輕微的逆風。

So I think the teams are doing well, and it speaks to the relevance of what we've built.

所以我認為團隊做得很好，這說明了我們所構建的內容的相關性。

We've had some big build-outs in India.

我們在印度進行了一些大型擴建。

So India slowed a little bit for us but still quite positive.

所以印度對我們來說放慢了一點，但仍然非常積極。

I think Russia was slightly negative.

我認為俄羅斯略顯消極。

Mexico was positive.

墨西哥是積極的。

It's the same story.

這是同一個故事。

It's a portfolio of emerging countries.

這是新興國家的投資組合。

And right now, we have more that are performing well from a volume perspective.

現在，從數量的角度來看，我們有更多表現良好的產品。

China was roughly flat for the last quarter.

中國上個季度大致持平。

But overall, again, I'm pleased given the complexities that our teams are facing, both geopolitically and from a currency perspective.

但總的來說，鑑於我們的團隊在地緣政治和貨幣角度面臨的複雜性，我再次感到高興。

I think they executed really well.

我認為他們執行得非常好。

And I think it speaks to the teams themselves on the ground and the portfolio that our engineering organization's built.

我認為這與當地的團隊本身以及我們的工程組織構建的產品組合有關。

Tal Liani from Bank of America.

美國銀行的 Tal Liani。

I have 2 questions -- or 1 question, 1 follow-up.

我有 2 個問題——或 1 個問題，1 個後續問題。

The first one is just about cloud spending.

第一個是關於雲支出。

We hear a lot about weakness in spending.

我們聽到很多關於支出疲軟的消息。

On one hand, you're not very, very exposed.

一方面，你不是非常非常暴露。

You're exposed in certain areas; and other areas, not.

你在某些方面暴露在外；而其他地區，不是。

On the other hand, it's a big growth opportunity for you.

另一方面，這對你來說是一個巨大的成長機會。

Can you discuss your participation in cloud and your comments on any weakness in cloud spending?

您能否討論一下您對雲的參與以及您對雲支出的任何弱點的評論？

And then I have a follow-up on the Chinese vendors.

然後我對中國供應商進行了跟進。

I think, Tal, the -- I guess this is a quarter where it helps not to have as much exposure.

我認為，Tal，我想這是一個有助於減少曝光率的季度。

But I think we're still very happy with our progress we're making there.

但我認為我們仍然對我們在那裡取得的進展感到非常滿意。

Some of these big transitions that we're talking about, the 100 gig, the 400 gig, those are going to be opportunities for us to try to insert.

我們正在談論的一些重大轉變，100 場演出，400 場演出，這些將成為我們嘗試插入的機會。

And we're working hard to actually position ourselves well for that.

我們正在努力為自己做好準備。

But I don't think that I could give any more color than what you've already heard from those who have a pretty significant exposure in that space.

但我不認為我能給出比你已經從那些在該領域有相當大的曝光度的人那裡聽到的更多的顏色。

We're still plugging along and doing all the same things that we've told you we're doing.

我們仍然堅持並做我們告訴過你我們正在做的所有相同的事情。

I would say that we still haven't gotten to a substantial different position than what we described to you probably 12 or 18 months ago, but we continue to make progress.

我想說的是，與我們可能在 12 或 18 個月前向您描述的情況相比，我們仍然沒有達到實質性的不同，但我們繼續取得進展。

And we've said it's going to be a long journey to get there.

我們已經說過，要到達那裡將是一段漫長的旅程。

So maybe -- again, I have a follow-up just on that.

所以也許 - 再一次，我有一個後續行動。

But maybe you can discuss your exposure to cloud and the difference between hyperscale -- hyperscalers versus smaller cloud vendors and if you see similar trends with smaller companies, where you do have exposure, versus larger companies.

但也許你可以討論你對雲的接觸以及超大規模之間的區別——超大規模與小型雲供應商之間的區別，如果你看到與大公司相比，你確實有接觸的小公司有類似的趨勢。

But I wanted to ask you, this morning, I hosted a call with Huawei.

但是我想問你，今天早上，我主持了與華為的電話會議。

And one of the things they were saying is they think they're actually going to gain market share despite all the issues.

他們所說的其中一件事是他們認為儘管存在所有問題，他們實際上將獲得市場份額。

And I want to -- I know you don't have -- you don't compete with them in China on certain things but -- and you don't compete with them in the U.S. But you do compete with Huawei and ZTE globally.

我想——我知道你沒有——你在中國不在某些事情上與他們競爭，但是——你不在美國與他們競爭，但你確實在全球範圍內與華為和中興通訊競爭.

And the question is being asked repeatedly about share gains versus Huawei and ZTE.

人們反复詢問與華為和中興相比的份額收益問題。

What is your position?

你的立場是什麼？

What is your view?

你的看法是什麼？

What kind of experiences you've had in the last few weeks and few months on the competition with Huawei when you talk with or when you discuss this with the carriers?

在過去的幾周和幾個月中，當您與運營商交談或討論時，您在與華為的競爭中有什麼樣的經歷？

And how do you see your portfolio versus Huawei's portfolio in light of these issues?

鑑於這些問題，您如何看待您的產品組合與華為的產品組合？

Yes.

是的。

It's a good question.

這是個好問題。

So first of all, the magnitude of the market opportunity in China skews the overall global market share numbers.

因此，首先，中國市場機會的大小扭曲了全球整體市場份額的數字。

So when -- if you're not participating in a material way in China, then it's very difficult to gain share if you're just looking at it broadly across the world.

因此，如果你在中國沒有以物質方式參與，那麼如果你只是在全球範圍內廣泛關注它，就很難獲得份額。

So we've begun to look at it without China and with China just to see how we're doing.

所以我們已經開始在沒有中國和中國的情況下看待它，只是為了看看我們做得如何。

What I would tell you is that, look, I think our innovation -- I said this in my prepared comments at the beginning.

我要告訴你的是，看，我認為我們的創新——我在一開始準備好的評論中就說過了。

I think our portfolio right now from an innovation perspective, and particularly with the work the teams are doing in the SP space and the work that we're doing around the 5G packet core and some of these next-generation platforms that are going to hit the market this year, I would put our innovation up against theirs and anybody else's in the world right now.

我認為我們現在的產品組合是從創新的角度來看的，特別是團隊在 SP 領域所做的工作以及我們圍繞 5G 分組核心所做的工作以及其中一些即將出現的下一代平台今年的市場，我會把我們的創新與他們的和世界上其他任何人的創新進行比較。

I think if you look at our performance in EMEA and in APJC over the last few quarters, I would suggest that we're not only holding our own, but we're competing and winning.

我想如果你看看過去幾個季度我們在 EMEA 和 APJC 的表現，我會建議我們不僅保持自己的狀態，而且我們正在競爭和獲勝。

And I would tell you, last quarter, we saw positive growth in SP in both of those regions.

我會告訴你，上個季度，我們在這兩個地區都看到了 SP 的正增長。

And so I feel very confident that not only can we compete, but that we are and we're winning right now.

所以我非常有信心，我們不僅可以競爭，而且我們現在正在贏。

And so the share comment from them could be related to the size of the Chinese market, and they're confident that the math works.

因此，他們的股票評論可能與中國市場的規模有關，他們相信數學是有效的。

But in other parts of the world, I'll tell you, we're doing really well right now.

但在世界其他地方，我會告訴你，我們現在做得非常好。

Tejas Venkatesh from UBS.

來自瑞銀的 Tejas Venkatesh。

I'm on for John.

我支持約翰。

You talked about double-digit growth in campus.

你談到了校園兩位數的增長。

Are the new Catalyst 9K products that you introduced about a quarter ago starting to contribute to revenue?

您大約一個季度前推出的新 Catalyst 9K 產品是否開始為收入做出貢獻？

I'm really just trying to get at how much more there is to go in campus and whether it's unreasonable to think campus could be up double digits for the full year as the newer Cat 9K products start to layer on.

我真的只是想知道校園裡還有多少東西可以去，以及隨著較新的 Cat 9K 產品開始層出不窮，認為校園全年可能增長兩位數是否不合理。

Well, I think when you just look at the raw 9K sales versus the installed base of the products that the 9K replaces, we are very early in that cycle.

好吧，我認為當你只看原始 9K 銷售與 9K 取代的產品的安裝基礎時，我們處於那個週期的早期。

And we just launched the 9200.

我們剛剛推出了 9200。

When did that start?

那是什麼時候開始的？

A quarter ago.

一個季度前。

A quarter ago.

一個季度前。

We just started shipping this quarter.

我們本季度才開始發貨。

Just started shipping this quarter.

本季度才開始發貨。

So the products that we announced in the middle of 2017 clearly are flowing through revenue.

所以我們在 2017 年年中宣布的產品顯然正在通過收入流動。

The 9200 just started contributing to that.

9200 剛剛開始為此做出貢獻。

But again, if you look at where we are versus the installed base that these products replace, it's very early.

但同樣，如果你看看我們與這些產品所取代的安裝基礎相比，現在還為時過早。

And then a quick follow-up on M&A.

然後快速跟進併購。

I wonder if you could comment on capital allocation.

我想知道你是否可以評論一下資本配置。

Now that the core business is growing very healthy, is it time for accelerated M&A, perhaps?

既然核心業務發展非常健康，也許是時候加速併購了？

Well, I'll make a comment, and Kelly can add on to it.

好吧，我會發表評論，凱利可以補充。

I don't think that the growth of the core fundamentally changes or -- our overarching acquisition strategy.

我認為核心業務的增長不會從根本上改變我們的總體收購戰略。

I think that we've had an acquisition strategy that's continued to add to our portfolio and expanding our portfolio.

我認為我們已經制定了一項收購戰略，該戰略將繼續增加我們的投資組合併擴大我們的投資組合。

What I alluded to early on is that our strategy of not only creating adjacent expansions to our portfolio but really driving innovation back into our core so that we can get growth from both given the size of our core markets, that's working.

我早些時候提到的是，我們的戰略不僅是為我們的投資組合創造相鄰的擴張，而且真正推動創新回到我們的核心，這樣我們就可以在考慮到我們核心市場的規模的情況下從這兩個方面獲得增長，這是有效的。

So I don't think that our overall M&A strategy changes because of the success of the core.

所以我不認為我們的整體併購戰略會因為核心的成功而改變。

But Kelly, you...

但是凱莉，你...

Yes, no.

是的，不。

It never has changed, right?

它從來沒有改變過，對吧？

I mean, I think our strategy has always been clear.

我的意思是，我認為我們的戰略一直很明確。

We're going to invest in the business first.

我們將首先投資於業務。

And we're always looking for M&A no matter what the environment is, and we're going to do smart M&A.

無論環境如何，我們一直在尋找併購，我們將進行明智的併購。

And then we're committed to our dividend growth like we have been.

然後我們像以往一樣致力於我們的股息增長。

And then, of course, the share buyback.

然後，當然是股票回購。

And again, I think you saw the latter 2 there.

再一次，我想你在那裡看到了後兩個。

We just announced again another increase to the dividend, just showing the commitment we have and the faith we have in the cash flows of the business, as well as just another increase in the share buyback authorization.

我們剛剛再次宣布增加股息，表明我們對企業現金流的承諾和信心，以及再次增加股票回購授權。

So I'd say it's independent to how the core business is doing.

所以我想說它獨立於核心業務的運作方式。

It's just a critical part of our overall strategy.

這只是我們整體戰略的重要組成部分。

Pierre Ferragu from New Street Research.

來自 New Street Research 的 Pierre Ferragu。

I'd like to come back to the comments you made, Chuck, on emerging market, on China.

查克，我想回到你對新興市場和中國的評論。

So what I heard is, clearly, that you're very happy with your performance there, relative.

所以我聽到的是，很明顯，你對你在那裡的表現非常滿意，親戚。

And it's true that having like a flat sales in China (inaudible) is great.

的確，在中國（聽不清）銷量持平是件好事。

And overall, your emerging market is holding well, especially when you take into account currency.

總的來說，你的新興市場表現良好，尤其是當你考慮到貨幣時。

But really, the question I would like to ask you is about how conversations with clients are going there?

但實際上，我想問你的問題是與客戶的對話如何進行？

What's your outlook?

你有什麼看法？

Like you guys at Cisco used to be a bellwether.

就像思科的你們曾經是領頭羊一樣。

You have very, very good insight into how enterprises are feeling about the macro developments.

你對企業對宏觀發展的看法有非常非常好的洞察力。

So from all the conversations you've had with clients this -- in the last 3 months, what's your take?

因此，從您與客戶進行的所有對話來看——在過去 3 個月中，您怎麼看？

What's your 2019 macro perspective?

你的2019年宏觀觀點是什麼？

Pierre, thanks for the question.

皮埃爾，謝謝你的提問。

What I've said several times in a lot of interviews is that I've been amazed at the resilience that we've seen around the world in light of all of the macro environment and the geopolitical dynamics, whether it's a shutdown or it's U.S.-China trade or it's Brexit or it's stress in Italy or it's political unrest in certain emerging countries.

我在很多采訪中多次說過，我對我們在世界各地看到的所有宏觀環境和地緣政治動態的彈性感到驚訝，無論是關閉還是美國。 -中國貿易或英國退歐或意大利的壓力或某些新興國家的政治動盪。

I mean, it's amazing the resilience that we've seen.

我的意思是，我們所看到的彈性令人驚訝。

What I would tell you is that our enterprise customers, given the focus, they really -- they don't view this technology anymore as an optional enabler of a strategy that they've come up with.

我要告訴你的是，我們的企業客戶，考慮到重點，他們真的 - 他們不再將這項技術視為他們提出的戰略的可選推動者。

They now view the technology as a core part of their strategy.

他們現在將這項技術視為其戰略的核心部分。

So I mean, many of the strategies they're driving around revenue growth don't work if they don't continue to invest in technology.

所以我的意思是，如果他們不繼續投資於技術，他們推動的許多圍繞收入增長的戰略就不會奏效。

Many of the things they're trying to do around simplification and cost reduction and productivity in their IT infrastructure as well as being able to efficiently deal with this new multi-cloud world, which is super complicated, I mean, they can't just stop.

他們試圖圍繞 IT 基礎設施的簡化、成本降低和生產力以及能夠有效地處理這個超級複雜的新多雲世界做很多事情，我的意思是，他們不能只是停止。

I mean, they have to keep executing.

我的意思是，他們必須繼續執行。

And I'd say that most of them have a paranoia that if they do stop investing, their competitors will not and they'll fall behind.

我要說的是，他們中的大多數人都有一種偏執，認為如果他們停止投資，他們的競爭對手也不會，他們就會落後。

So all that being said, I will just tell you, our customers -- I haven't seen any general difference over the last 90 days in the discussions we've had, with the exception of talking to a customer who has very high exposure to the Chinese market.

綜上所述，我只想告訴你，我們的客戶——在過去 90 天裡，我沒有看到我們進行的討論有任何普遍差異，除了與一位曝光率很高的客戶交談之外到中國市場。

But even then, they talk about the impact of the geopolitical situation, but they never connect it to any sort of spending shift that -- some of them may do that, but I'm not having those conversations.

但即便如此，他們談論地緣政治局勢的影響，但他們從未將其與任何形式的支出轉變聯繫起來——他們中的一些人可能會這樣做，但我沒有進行這些對話。

Everybody seems to be moving the same place they were 3, 6 months ago.

每個人似乎都在 3、6 個月前搬到同一個地方。

Sami Badri from Crédit Suisse.

瑞士信貸銀行的 Sami Badri。

I just wanted to get a quick one regarding the number of ELAs you signed in the quarter and what percentage of revenues that actually reflected.

我只是想快速了解一下您在本季度簽署的 ELA 數量以及實際反映的收入百分比。

Are you talking just Cisco ONE, what we have provided before?

您是在談論我們之前提供的 Cisco ONE 嗎？

Yes, exactly.

對，就是這樣。

That's right.

這是正確的。

Yes.

是的。

I'd say, For Cisco ONE, we are now basically over 31,000, 31,500, in that range.

我會說，對於 Cisco ONE，我們現在基本上超過了 31,000、31,500，在這個範圍內。

And I'd say the thing to think about as you think about that going forward, as we move more and more of the portfolios to this DNA architecture and the architecture we're rolling out more and more, you're going to see more and more of our customers going to that kind of framework where the software is included in that as well.

我想說的是，當你考慮未來時要考慮的事情，隨著我們將越來越多的投資組合轉移到這個 DNA 架構以及我們越來越多地推出的架構，你會看到更多我們的更多客戶會選擇那種軟件也包含在其中的框架。

So we continue to grow the Cisco ONE bundles.

因此，我們繼續發展 Cisco ONE 捆綁包。

But again, as we progress through the early innings of the Enterprise Networking, Cat 9K and so on portfolio transitioning, you're going to see more and more going to the DNA architecture and software bundles of that.

但同樣，隨著我們在企業網絡、Cat 9K 等投資組合過渡的早期階段取得進展，你會看到越來越多的人轉向 DNA 架構和軟件包。

And then are you comfortable giving a percentage of revenue, something like that, that we could get a little bit of an indicator from?

然後你願意給出收入的百分比嗎？類似的東西，我們可以從中得到一點指標？

No, we don't disclose that.

不，我們不會透露這一點。

Steve Milunovich from Wolfe Research.

來自 Wolfe Research 的 Steve Milunovich。

To follow on, at the last Analyst Day, Kelly, you talked about software as a percentage of total revenue, I think, going from 22% to 30% over 3 years.

接下來，在上一個分析師日，凱利，你談到軟件佔總收入的百分比，我認為，在 3 年內從 22% 上升到 30%。

Can you indicate where you are in that range, if 30% is still the goal, if there's now a higher goal?

如果 30% 仍然是目標，如果現在有更高的目標，你能指出你在那個範圍內的位置嗎？

And then how is 606 affecting that?

那麼 606 是如何影響它的呢？

And specifically, in this quarter, did 606 give you a revenue boost?

具體來說，在本季度，606 是否給您帶來了收入增長？

Yes.

是的。

Yes, I would say, to the first part of that question, we are continuing to progress along those lines.

是的，我會說，對於這個問題的第一部分，我們正在繼續沿著這些路線前進。

And with the new rev rec, because it's accelerating some of these things that -- when you pull a snapshot for this year, it's accelerating some of it.

有了新的 rev rec，因為它正在加速其中的一些事情——當你拉出今年的快照時，它正在加速其中的一些事情。

But overall, for the longer-term strategy, it's absolutely progressing like we said it would at FAC.

但總的來說，就長期戰略而言，它絕對像我們在 FAC 上所說的那樣取得進展。

And yes, this quarter, we were around 2% for the acceleration when you compare the 606 versus 605 accounting change difference.

是的，本季度，當您比較 606 與 605 的會計變更差異時，我們的加速速度約為 2%。

James Faucette from Morgan Stanley.

摩根士丹利的 James Faucette。

Chuck, I wanted to ask you, it's interesting to me that the focus on hybrid and hybrid cloud is starting to evolve, especially given where people thought we might end up just a couple of years ago.

Chuck，我想問你，對混合雲和混合雲的關注開始演變對我來說很有趣，特別是考慮到人們認為我們可能在幾年前結束的地方。

Can you talk about how well-formed do you think your customers are?

你能談談你認為你的客戶有多健康嗎？

And I guess, are they seeing or can they understand the real value that Cisco can deliver in hybrid implementations yet, and how much missionary work [you] still have to do?

我想，他們是否看到或能夠理解思科在混合實施中可以提供的真正價值，以及 [您] 還需要做多少傳教工作？

Yes.

是的。

Thanks, James.

謝謝，詹姆斯。

Look, here's the situation our customers find themselves in: if you contrast where they thought they were going to be 4 or 5 years ago, they thought that they were going to move to the cloud.

看，這就是我們的客戶發現自己所處的情況：如果你對比他們 4 或 5 年前的想法，他們認為他們將遷移到雲端。

And we've joked about it being a euphoric neighborhood where they just move and everything is simple.

我們開玩笑說這是一個欣快的社區，他們只是搬家，一切都很簡單。

And somewhere along the way, they find themselves with 4 or 5 cloud providers, multiple collaboration cloud providers, 100 SaaS providers, an explosion of IoT at the Edge.

在此過程中的某個地方，他們發現自己擁有 4 或 5 個雲提供商、多個協作雲提供商、100 個 SaaS 提供商，以及邊緣物聯網的爆炸式增長。

And so what's happening is -- and by the way, they still have private data centers with applications that can't be migrated to the cloud.

因此，正在發生的事情是——順便說一下，他們仍然擁有私有數據中心，其中的應用程序無法遷移到雲端。

They've now gotten to a place where certain applications they're repatriating from the cloud.

他們現在已經到了可以將某些應用程序從雲中撤回的地方。

And the reality is that they now find themselves with a more complicated environment than they had 5 years ago when they began this journey to simplification.

而現實情況是，與 5 年前開始這一簡化之旅時相比，他們現在發現自己所處的環境更加複雜。

That's the irony.

這就是諷刺。

If you think about what I just described, there's only one piece of technology that is consistent across all of those things that I just talked about, and that is the network.

如果您考慮一下我剛才描述的內容，那麼只有一項技術在我剛才談到的所有這些事情中是一致的，那就是網絡。

And so what's happening is a lot of the things that have to occur to help them navigate this need to happen in the network.

因此，正在發生的事情是必鬚髮生的許多事情，以幫助他們應對網絡中發生的這種需要。

And so that's where this whole policy automation strategy that we have is really important, because for them to be able to deal with applications running anywhere, deal with users operating anywhere, the data flows and the traffic flows are nothing that look like what led them to architect their networks the way they did a decade ago.

因此，這就是我們擁有的整個策略自動化策略真正重要的地方，因為對於他們來說，能夠處理在任何地方運行的應用程序，處理在任何地方操作的用戶，數據流和流量與導致他們的原因完全不同以十年前的方式構建他們的網絡。

And then couple that with security and the fact that in security, you're not protecting a perimeter anymore.

然後將其與安全性以及在安全性方面的事實相結合，您不再保護邊界。

So it's not about a big, fat honking firewall.

所以這不是關於一個大而胖的喇叭防火牆。

It's about an architecture that really does have integrated security from the network to the cloud, to the Edge, to email, where you're building a comprehensive integrated strategy, where you're seeing threats in one area and you're protecting across all those domains.

它是關於一個真正具有從網絡到雲、到邊緣、到電子郵件的集成安全性的架構，您可以在其中構建全面的集成策略，您可以在其中看到一個區域的威脅，並在所有區域進行保護那些域。

So to answer your question, I think that 2 years ago, we had to convince customers that this is what we felt.

因此，為了回答您的問題，我認為 2 年前，我們必須讓客戶相信這就是我們的感受。

And today, I'd say most enterprise customers, they could present a whole set of slides to you before we even start talking about the challenges they face and the importance of the network going forward.

今天，我想說大多數企業客戶，在我們開始談論他們面臨的挑戰和網絡向前發展的重要性之前，他們可以向您展示一整套幻燈片。

So thanks for the last question.

所以感謝最後一個問題。

Thank you.

謝謝。

I want to thank all of you for joining us today.

我要感謝大家今天加入我們。

I'll make a few closing comments.

我將作一些結束評論。

First of all, I think our teams have executed incredibly well in light of a very complicated macro and geopolitical environment that we find ourselves in.

首先，我認為我們的團隊在我們所處的非常複雜的宏觀和地緣政治環境中表現出色。

Our engineering teams over the last few years have delivered on innovation to a point where I will tell you that our portfolio is in the best shape it's been in years.

在過去的幾年裡，我們的工程團隊已經實現了創新，我可以告訴你，我們的產品組合處於多年來的最佳狀態。

And I think we are in a very good position with our customers based on the strategies that they're deploying going forward.

而且我認為，根據客戶未來部署的戰略，我們與客戶處於非常有利的位置。

And I have a high degree of confidence in our ability to execute.

我對我們的執行能力很有信心。

When you look to the future, there's 2 things -- there's 2 elements that we have to consider.

當你展望未來時，有兩件事——我們必須考慮兩個因素。

There's the geopolitical, macro issues, and we'll continue to navigate them to the best of our ability.

還有地緣政治、宏觀問題，我們將繼續盡我們最大的能力解決這些問題。

And then there's our own execution, which I think is probably near the peak of what our teams have done in quite a while.

然後是我們自己的執行力，我認為這可能接近我們團隊在相當長一段時間內所做工作的頂峰。

So we feel good about where we are.

所以我們對自己的處境感覺良好。

There's obviously a lot of variables, a lot of complexities, but we're pleased with what we accomplished last quarter.

顯然有很多變數，很多複雜性，但我們對上個季度取得的成就感到滿意。

We feel good about next quarter, and we're going to continue to execute.

我們對下個季度感覺良好，我們將繼續執行。

Thanks for joining us.

感謝您加入我們。

Thanks, Chuck.

謝謝，查克。

And I'm just going to wrap up here.

我將在這裡結束。

Cisco's next quarterly earnings conference call, which will reflect our fiscal 2019 third quarter results, will be on Wednesday, May 15, 2019, at 1:30 p.m.

思科的下一個季度收益電話會議將於 2019 年 5 月 15 日星期三下午 1:30 召開，這將反映我們 2019 財年第三季度的業績。

Pacific Time, 4:30 p.m.

太平洋時間下午 4:30

Eastern time.

東部時間。

Again, I'd like to remind the audience that in light of Regulation FD, Cisco's policy is not to comment on its financial guidance during the quarter unless it's done through an explicit public disclosure.

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

We now plan to close the call.

我們現在計劃結束通話。

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

如果您有任何其他問題，請隨時聯繫思科的投資者關係部門，我們非常感謝您參加今天的電話會議。

And thank you for participating on today's conference call.

感謝您參加今天的電話會議。

If you would like to listen to the call in its entirety, you may call (800) 391-9851.

如果您想完整收聽電話，可以致電 (800) 391-9851。

For participants dialing from outside the U.S., please dial (203) 369-3268.

對於來自美國境外的參與者，請撥打 (203) 369-3268。

This concludes today's call.

今天的電話會議到此結束。

You may disconnect at this time.

此時您可以斷開連接。