思科 (CSCO) 2023 Q2 法說會逐字稿

Welcome to Cisco's Second Quarter Fiscal Year 2023 Financial Results Conference Call. At the request of Cisco, today's conference is being recorded. If you have any objections, you may disconnect. Now I would like to introduce Marilyn Mora, Head of Investor Relations. Ma'am, you may begin.

歡迎參加思科 2023 財年第二季度財務業績電話會議。應思科的要求，今天的會議正在錄製中。如有異議，可斷開連接。現在我想介紹一下投資者關係主管 Marilyn Mora。女士，您可以開始了。

Welcome, everyone, to Cisco's Second Quarter Fiscal 2023 Quarterly Earnings Conference Call. This is Marilyn Mora, Head of Investor Relations, and I'm joined by Chuck Robbins, our Chair and CEO; and Scott Herren, our CFO. 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.

歡迎大家參加思科 2023 財年第二季度季度收益電話會議。我是投資者關係主管 Marilyn Mora，我們的主席兼首席執行官 Chuck Robbins 也加入了我的行列；和我們的首席財務官 Scott Herren。到目前為止，您應該已經看到了我們的收益新聞稿。電話會議後，將在我們網站的“投資者關係”部分提供相應的帶幻燈片的網絡廣播，包括補充信息。

Income statements, full GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements and other financial information can also be found in the Financial Information section of our Investor Relations website. Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results, and we'll discuss product results in terms of revenue and geographic and customer results in terms of product orders unless stated otherwise. All comparisons made throughout this call will be done on a year-over-year basis.

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。在整個電話會議中，我們將參考 GAAP 和非 GAAP 財務結果，除非另有說明，否則我們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。在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 and full year of fiscal 2023. 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.

我們今天將討論的事項包括前瞻性陳述，包括我們將為 2023 財年第三季度和全年提供的指導。它們受到我們在提交給SEC，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前瞻性陳述中包含的結果存在重大差異的重要風險因素。

With respect to guidance, please also see the slides and press release that accompany this call for further details. Cisco will not comment on its financial guidance during the quarter unless it is done through an explicit public disclosure. I will now turn it over to Chuck.

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。除非通過明確的公開披露，否則思科不會在本季度對其財務指導發表評論。我現在將把它交給查克。

Thanks, Marilyn. I hope everyone is doing well. With the tremendous results we delivered in the first half of the year, fiscal '23 is shaping up to be very strong, fueled by demand for our cloud-driven networking portfolio, our continued business transformation success and an improving supply situation, thanks in large part to our team's aggressive actions.

謝謝，瑪麗蓮。我希望每個人都做得很好。憑藉我們在今年上半年取得的巨大成果，在對我們的雲驅動網絡產品組合的需求、我們持續的業務轉型成功以及供應狀況改善的推動下，'23 財年正在形成非常強勁的勢頭，這要歸功於大一部分是我們團隊的侵略性行動。

Before I dive into additional details on the quarter, I wanted to take a moment to say how incredibly proud I am of the team here at Cisco. While the environment we're operating in remains dynamic, Cisco is better positioned today than at any time since I became CEO almost 8 years ago. We have reshaped and transformed the company and our portfolio while remaining highly disciplined, both financially and operationally. This gives me great confidence that we will continue to succeed in the long term.

在我深入探討本季度的更多細節之前，我想花點時間說一下，我為思科的團隊感到無比自豪。雖然我們經營的環境仍然充滿活力，但自從我將近 8 年前擔任首席執行官以來，思科今天處於比以往任何時候都更好的位置。我們重塑和轉變了公司和我們的投資組合，同時在財務和運營方面保持高度紀律。這給了我很大的信心，我們將在長期內繼續取得成功。

Now I'll touch on the quarter in more detail. Our Q2 financial results were strong as we again exceeded the high end of our guidance ranges. We delivered our second highest quarterly revenue of $13.6 billion, up 7% and record non-GAAP EPS at $0.88. We also delivered solid ARR growth, sequential non-GAAP margin expansion and record non-GAAP net income.

現在我將更詳細地介紹這個季度。我們的第二季度財務業績強勁，因為我們再次超出了指導範圍的高端。我們實現了 136 億美元的第二高季度收入，增長 7%，非 GAAP 每股收益創歷史新高，達到 0.88 美元。我們還實現了穩健的 ARR 增長、連續的非 GAAP 利潤率擴張和創紀錄的非 GAAP 淨收入。

In terms of our business model shift, we continue to make great progress with 10% growth in software revenue and with software subscription revenue up 15%. Recurring revenue also now represents 44% of our total revenue. In addition, we have built up nearly $32 billion in remaining performance obligations, and our backlog remains robust. Even as we drew down backlog by 6% sequentially, our total backlog still grew year-over-year. These metrics, along with our increasing visibility, led us to raise our full year outlook, which Scott will address in a moment.

在我們的商業模式轉變方面，我們繼續取得長足進步，軟件收入增長 10%，軟件訂閱收入增長 15%。經常性收入現在也占我們總收入的 44%。此外，我們已經積累了近 320 億美元的剩餘履約義務，而且我們的積壓工作依然強勁。即使我們連續減少了 6% 的積壓，我們的總積壓仍然同比增長。這些指標以及我們不斷提高的知名度促使我們提高了全年展望，Scott 稍後將對此進行闡述。

This quarter, we also achieved record operating cash flow, enabling today's dividend increase and the buyback of over $1 billion. We continue to deliver on our commitment to drive returns to our shareholders. Let me also provide an update on the supply situation. While components for a few product areas remain highly constrained, we did see an overall improvement. Combined with the aggressive actions our supply chain and engineering teams took to redesign hundreds of our products, we increased product deliveries and saw significant reductions in customer lead times. As our product deliveries increased, channel inventories also declined as our partners were able to complete customer projects.

本季度，我們還實現了創紀錄的運營現金流，實現了今天的股息增長和超過 10 億美元的回購。我們將繼續履行我們為股東帶來回報的承諾。我還要提供有關供應情況的最新情況。雖然一些產品領域的組件仍然受到高度限制，但我們確實看到了整體改進。結合我們的供應鍊和工程團隊重新設計數百種產品所採取的積極行動，我們增加了產品交付並顯著縮短了客戶交貨時間。隨著我們產品交付量的增加，渠道庫存也有所下降，因為我們的合作夥伴能夠完成客戶項目。

Like I shared last quarter, as supply constraints ease and lead times shorten, we expect orders would normalize from previously elevated levels as customers return to more typical buying patterns. As a result, sequential quarterly order growth is a better indicator than year-over-year growth. And in Q2, despite improving lead times, our quarter-over-quarter order growth was again in line with our historical ranges across most of our geographies and customer markets.

就像我上個季度分享的那樣，隨著供應限制的緩解和交貨時間的縮短，我們預計隨著客戶恢復到更典型的購買模式，訂單將從之前的高水平恢復正常。因此，連續季度訂單增長是比同比增長更好的指標。在第二季度，儘管交貨時間有所縮短，但我們的季度環比訂單增長再次與我們大多數地區和客戶市場的歷史範圍一致。

With that, let me touch on what we're seeing with customer demand. In our customer markets, we experienced normal double-digit sequential growth in both our enterprise and commercial markets, while public sector performed better than we have seen historically. Within our service provider business, our order rate was below recent sequentials as some customers are absorbing the improved delivery of our products into their production environments.

有了這個，讓我談談我們對客戶需求的看法。在我們的客戶市場，我們在企業和商業市場都經歷了正常的兩位數連續增長，而公共部門的表現比我們以往看到的要好。在我們的服務提供商業務中，我們的訂單率低於最近的順序，因為一些客戶正在吸收我們改進的產品交付到他們的生產環境中。

We saw another consecutive quarter of rapid adoption of our 400 gig, Cisco 8000 and Silicon One platforms. This reflects the ongoing investments our customers are making in our innovative solutions and AI-optimized infrastructure. Within web scale, while we saw overall slowing due to normalizing product lead times, 2 of our largest customers grew their orders with us over 40% in the first half of fiscal '23. We continue to take share in this space. And over the past few years, we've grown our web-scale cloud infrastructure from effectively 0 into a multibillion dollar run rate business. I'm incredibly pleased about the overall progress we've made as we are continuing to win more and more use cases within their infrastructure. We are also still at the beginning of what we believe to be a massive growth opportunity going forward.

我們又連續一個季度看到了我們的 400 gig、Cisco 8000 和 Silicon One 平台的快速採用。這反映了我們的客戶對我們的創新解決方案和人工智能優化基礎設施的持續投資。在網絡規模內，雖然我們看到由於產品交貨時間正常化導致整體放緩，但我們最大的 2 個客戶在 23 財年上半年與我們的訂單增長了 40% 以上。我們繼續在這個領域佔有一席之地。在過去的幾年裡，我們已經將網絡規模的雲基礎設施從實際上的 0 發展成為一個運行率達數十億美元的業務。我對我們取得的總體進展感到非常高興，因為我們繼續在他們的基礎設施中贏得越來越多的用例。我們也仍處於我們認為是未來巨大增長機會的開端。

While we continue to closely monitor the global macroeconomic conditions, the overall demand environment remains steady and on par with Q1 and our pipeline and win rates remain stable. Looking at the broader landscape, digital transformation and hybrid cloud remain top areas of spend, which is fueling growth across our portfolio. Many customers have told me that while their spend levels may be slowing in some areas, technology remains essential as it is vital to their overall business resilience, competitive differentiation and success. In fact, Gartner and IDC's most recent surveys make it clear that technology budgets are growing as they forecast IT spend to increase in the mid- to high single digits in 2023.

在我們繼續密切關注全球宏觀經濟狀況的同時，整體需求環境保持穩定並與第一季度持平，我們的渠道和贏單率保持穩定。放眼更廣泛的領域，數字化轉型和混合雲仍然是支出的首要領域，這推動了我們整個產品組合的增長。許多客戶告訴我，雖然他們在某些領域的支出水平可能正在放緩，但技術仍然必不可少，因為它對他們的整體業務彈性、競爭優勢和成功至關重要。事實上，Gartner 和 IDC 的最新調查清楚地表明，技術預算正在增長，因為他們預測 IT 支出在 2023 年將以中高個位數增長。

We're also seeing many customers moving ahead with their hybrid work, AI and ML investments while building the modern infrastructure they need to deliver on their objectives. IoT has also been accelerating. We saw record revenue growth in Q2 as customers look to connect their industrial systems in order to optimize power consumption, automation and efficiency.

我們還看到許多客戶在構建他們實現目標所需的現代基礎設施的同時，繼續推進他們的混合工作、人工智能和機器學習投資。物聯網也在加速發展。我們在第二季度看到創紀錄的收入增長，因為客戶希望連接他們的工業系統以優化功耗、自動化和效率。

Lastly, cybersecurity and full-stack observability remains strategic priorities where we continue to invest and innovate. From a product revenue perspective, we saw strong double-digit growth for Catalyst 9K, enterprise routing, Wireless, Meraki, Duo and ThousandEyes, reflecting the ongoing investments our customers are making to modernize their infrastructure to rapidly digitize and secure their organizations.

最後，網絡安全和全棧可觀察性仍然是我們繼續投資和創新的戰略重點。從產品收入的角度來看，我們看到 Catalyst 9K、企業路由、Wireless、Meraki、Duo 和 ThousandEyes 實現了兩位數的強勁增長，反映出我們的客戶正在為實現基礎設施現代化以快速數字化和保護其組織進行持續投資。

We are increasing our investments in our cloud management platforms that deliver the simplicity our customers need. You will see us continue to bring AI and ML into those platforms to further simplify how networks are managed. For example, in Q2, we announced several new innovations across our cloud managed networking and security portfolios that offer greater visibility with AI-driven insights, enable secure connectivity and give our customers the ability to simplify their IT operations.

我們正在增加對雲管理平台的投資，以提供客戶所需的簡單性。您將看到我們繼續將 AI 和 ML 引入這些平台，以進一步簡化網絡的管理方式。例如，在第二季度，我們宣布了雲託管網絡和安全產品組合中的幾項新創新，這些創新通過 AI 驅動的洞察力提供更高的可見性，實現安全連接並使我們的客戶能夠簡化其 IT 運營。

Last week, we introduced a preview of our cloud native full-stack observability platform, the first network visibility solution to support OpenTelemetry. This platform brings together our ThousandEyes and AppDynamics capabilities for unmatched data correlation and insights from the user to the application to the network. To simplify network security and policy management, our unified SASE solution, Cisco+ Secure Connect Now supports integration into Cisco SD-WAN fabrics using Viptela technology as well as our existing Meraki SD-WAN fabric. We also introduced new flexible, more powerful and energy-efficient servers, which not only help lower cost but also help our customers meet their sustainability goals, an increasingly critical area for most of our customers.

上週，我們推出了雲原生全堆棧可觀察性平台的預覽版，這是第一個支持 OpenTelemetry 的網絡可見性解決方案。該平台匯集了我們的 ThousandEyes 和 AppDynamics 功能，可實現從用戶到應用程序再到網絡的無與倫比的數據關聯和洞察力。為了簡化網絡安全和策略管理，我們的統一 SASE 解決方案 Cisco+ Secure Connect Now 支持使用 Viptela 技術以及我們現有的 Meraki SD-WAN 結構集成到思科 SD-WAN 結構中。我們還推出了新的靈活、更強大和更節能的服務器，這不僅有助於降低成本，還可以幫助我們的客戶實現他們的可持續發展目標，這對我們的大多數客戶來說是一個越來越重要的領域。

To close, I'm proud of what we achieved this quarter. We delivered a strong financial performance, innovated across our portfolio and continue to make great progress on our business transformation. In addition, the increased visibility we have from almost $32 billion in RPO, a healthy backlog and pipeline and improving supply give us the confidence to raise our full year outlook. We expect those same factors to continue into fiscal year '24, giving us conviction in our ability to deliver on our commitments.

最後，我為我們本季度取得的成就感到自豪。我們實現了強勁的財務業績，在我們的產品組合中進行了創新，並繼續在我們的業務轉型方面取得重大進展。此外，近 320 億美元的 RPO 提高了我們的知名度，健康的積壓和管道以及改善的供應使我們有信心提高我們的全年展望。我們預計這些相同的因素將持續到 24 財年，讓我們相信我們有能力履行我們的承諾。

The modern, resilient and secure networks we are building serve as the backbone of our customers' technology strategy. Cisco is well positioned to benefit from multiyear investment cycles with our market-leading hardware as well as our innovative software and services. Together, these allow our customers to digitize rapidly, secure their environments and achieve their sustainability goals, all while delivering differentiated experiences. Now I'll turn it over to Scott.

我們正在構建的現代、有彈性和安全的網絡是我們客戶技術戰略的支柱。憑藉我們市場領先的硬件以及創新的軟件和服務，思科處於有利地位，可以從多年投資週期中獲益。總之，這些使我們的客戶能夠快速數字化，保護他們的環境並實現他們的可持續發展目標，同時提供差異化的體驗。現在我將把它交給斯科特。

Thanks, Chuck. We delivered another strong quarter and exceeded both our top and bottom line expectations driven by our focused execution, continued success of our business transformation and improved availability of supply as the actions our supply chain team have taken over the last several quarters are bearing fruit.

謝謝，查克。由於我們的專注執行、業務轉型的持續成功以及供應可用性的提高，我們的供應鏈團隊在過去幾個季度中採取的行動正在取得成果，因此我們又交付了一個強勁的季度並超出了我們的最高和最低預期。

Total revenue was $13.6 billion, up 7%. Non-GAAP net income was a record $3.6 billion, and non-GAAP earnings per share, also a record, was $0.88. Looking at our Q2 revenue in more detail. Total product revenue was $10.2 billion up 9%. Service revenue was $3.4 billion, up 2%. Within product revenue, Secure, Agile Networks performed very well, up 14%. Switching revenue grew in the double digits with strength in campus switching, driven by our Catalyst 9000 and Meraki offerings. While data center switching declined slightly, we saw strong growth in our Nexus 9000 offerings. Enterprise routing had double-digit growth, driven primarily by strength in our Catalyst 8000 Series routers, SD-WAN and IoT routing. Wireless had very strong double-digit growth with strength across the entire portfolio. Internet for the Future was down 1%, driven by declines in Optical and Edge. We saw growth in our Cisco 8000 offering and double-digit growth in web scale. Collaboration was down 10%, driven by declines in meetings and collaboration devices, slightly offset by growth in contact center. End-to-end Security was up 7%, driven by our unified threat management and Zero Trust offerings. Optimized Application Experiences was up 11%, driven by double-digit growth in our SaaS-based offering, ThousandEyes.

總收入為 136 億美元，增長 7%。非 GAAP 淨收入達到創紀錄的 36 億美元，非 GAAP 每股收益為 0.88 美元，同樣創歷史新高。更詳細地查看我們的第二季度收入。產品總收入為 102 億美元，增長 9%。服務收入為 34 億美元，增長 2%。在產品收入中，Secure、Agile Networks 表現非常出色，增長了 14%。在我們的 Catalyst 9000 和 Meraki 產品的推動下，交換收入以兩位數的速度增長，園區交換的實力強勁。雖然數據中心交換略有下降，但我們看到 Nexus 9000 產品的強勁增長。企業路由實現了兩位數的增長，這主要得益於我們 Catalyst 8000 系列路由器、SD-WAN 和物聯網路由的實力。無線業務實現了非常強勁的兩位數增長，整個產品組合都表現強勁。受光學和邊緣業務下滑的推動，未來互聯網業務下跌 1%。我們看到了 Cisco 8000 產品的增長和 Web 規模的兩位數增長。協作下降了 10%，原因是會議和協作設備的減少，但被聯絡中心的增長略微抵消了。在我們的統一威脅管理和零信任產品的推動下，端到端安全增長了 7%。受我們基於 SaaS 的產品 ThousandEyes 兩位數增長的推動，優化的應用程序體驗增長了 11%。

We made solid progress on our transformation metrics as we shift our business to more recurring revenue-based offerings, driven by higher levels of software and subscriptions. We saw strong performance in our ARR of $23.3 billion, which increased 6% with product ARR growth of 11%. Total software revenue was $4.2 billion, an increase of 10%, with soft subscription revenue up 15%. 84% of the software revenue was subscription-based, which is up 4 percentage points year-over-year.

在更高水平的軟件和訂閱的推動下，隨著我們將業務轉向更多基於經常性收入的產品，我們在轉型指標方面取得了穩步進展。我們的 ARR 表現強勁，達到 233 億美元，增長 6%，產品 ARR 增長 11%。軟件總收入為 42 億美元，增長 10%，軟訂閱收入增長 15%。 84% 的軟件收入是基於訂閱的，同比增長 4 個百分點。

We continue to have $2 billion of software orders in our product backlog. Total subscription revenue was $6 billion, an increase of 9%. Total subscription revenue represented 44% of total revenue. And RPO was $31.8 billion, up 4%. Product RPO increased 7% and service RPO increased 2%, and total short-term RPO grew to $16.9 billion. While total product orders were down 22%, they compared against 34% growth in Q2 fiscal '22, which is one of the largest quarters for product orders in our history. We saw year-over-year declines across our geographies and customer markets. Sequentially, total product order growth was in line with our historical growth rates.

我們的產品積壓訂單中仍有 20 億美元的軟件訂單。總訂閱收入為 60 億美元，增長 9%。總訂閱收入佔總收入的 44%。 RPO 為 318 億美元，增長 4%。產品 RPO 增長 7%，服務 RPO 增長 2%，短期 RPO 總額增長至 169 億美元。雖然總產品訂單下降了 22%，但與 22 財年第二季度 34% 的增長率相比，這是我們歷史上產品訂單最大的季度之一。我們看到我們的地區和客戶市場同比下降。因此，總產品訂單增長與我們的歷史增長率一致。

Within our customer markets, we experienced double-digit sequential growth in both enterprise and commercial, and public sector was better than we've seen historically. We continue to have very low order cancellation rates, which remain below pre-pandemic levels.

在我們的客戶市場中，我們在企業和商業領域都實現了兩位數的連續增長，而公共部門的表現比以往任何時候都要好。我們的訂單取消率仍然很低，仍低於大流行前的水平。

Total non-GAAP gross margin came in at the high end of our guidance range at 63.9%, down 160 basis points and up 90 basis points sequentially. Product gross margin was 62.1%, down 220 basis points year-over-year and up 110 basis points sequentially. Service gross margin was 69.1%, up 30 basis points.

非 GAAP 總毛利率處於我們指導範圍的高端 63.9%，連續下降 160 個基點和上升 90 個基點。產品毛利率為 62.1%，同比下降 220 個基點，環比上升 110 個基點。服務毛利率為 69.1%，上升 30 個基點。

In our product gross margin, the year-over-year decrease was primarily driven by higher component and other costs. This was partially offset by our strong product mix and positive pricing as the benefits of the actions we took in the prior fiscal year flowed through as we shifted our backlog.

在我們的產品毛利率中，同比下降主要是由於較高的組件和其他成本。這部分被我們強大的產品組合和積極的定價所抵消，因為我們在上一財年採取的行動的好處在我們轉移積壓訂單時得到了體現。

Non-GAAP operating margin came in at the high end of our guidance range at 32.5%, down 180 basis year-over-year and up 70 basis points sequentially. The year-over-year decline was primarily driven by the higher component and other costs that I just mentioned. Backlog for both our hardware and software products continue to far exceed historical levels. As we navigated a complex supply environment, we were able to draw down total backlog by 6% sequentially, although it still grew year-over-year. Just a reminder, backlog is not included as part of our $31.8 billion in remaining performance obligations. Combined, our significant product backlog and RPO continued to provide great visibility to our top line.

非 GAAP 營業利潤率處於我們指導範圍的高端，為 32.5%，同比下降 180 個基點，環比上升 70 個基點。同比下降主要是由於我剛才提到的較高的組件和其他成本。我們的硬件和軟件產品的積壓繼續遠遠超過歷史水平。在我們應對複雜的供應環境時，我們能夠將總積壓訂單連續減少 6%，儘管它仍然同比增長。提醒一下，積壓不包括在我們 318 億美元的剩餘履約義務中。結合起來，我們大量的產品積壓和 RPO 繼續為我們的收入提供了很好的可見性。

Shifting to the balance sheet. We ended Q2 with total cash, cash equivalents and investments of $22.1 billion. We had record operating cash flow for the quarter of $4.7 billion, up 93% year-over-year driven by strong collections, and we deferred our Q2 federal tax payments due to the IRS tax relief related to the California floods. We expect to pay these federal taxes by the end of the fiscal year.

轉向資產負債表。我們在第二季度末的現金、現金等價物和投資總額為 221 億美元。在強勁的收款推動下，我們本季度的運營現金流達到創紀錄的 47 億美元，同比增長 93%，並且由於 IRS 與加州洪水相關的稅收減免，我們推遲了第二季度的聯邦稅款支付。我們預計在本財政年度結束前繳納這些聯邦稅。

We returned $2.8 billion to shareholders during the quarter, which was comprised of $1.6 billion for our quarterly cash dividend and $1.3 billion of share repurchases. We also ended the quarter with $13.4 billion in remaining stock repurchase authorization. Today, we announced that we are raising our quarterly dividend by $0.01 to $0.39 per share, which represents our 13th consecutive increase. This reinforces our commitment to returning a minimum of 50% of free cash flow to our shareholders annually and confidence in the strength and stability of our ongoing cash flows.

本季度我們向股東返還了 28 億美元，其中包括 16 億美元的季度現金股息和 13 億美元的股票回購。我們還以 134 億美元的剩餘股票回購授權結束了本季度。今天，我們宣布將季度股息提高 0.01 美元至每股 0.39 美元，這是我們連續第 13 次增加股息。這加強了我們每年向股東返還至少 50% 的自由現金流的承諾，以及對我們持續現金流的實力和穩定性的信心。

To summarize, we had a great quarter, delivering better-than-expected top and bottom line performance. We continue to make progress on our business model shift to more recurring revenue while making strategic investments in innovation to capitalize on our significant growth opportunities.

總而言之，我們有一個很棒的季度，提供了好於預期的頂線和底線表現。我們繼續在向更多經常性收入轉變的業務模式方面取得進展，同時對創新進行戰略投資以利用我們重要的增長機會。

Turning now to our guidance. Our guidance ranges reflect our strong pipeline and significant visibility driven by healthy backlog, ARR, RPO and improving availability of supply as we continue to benefit from the actions our supply chain team have taken over the last several quarters. We expect those same factors will continue into fiscal 2024, giving us greater visibility and confidence in our longer-term goals.

現在轉向我們的指導。我們的指導範圍反映了我們強大的管道和顯著的可見性，這是由健康的積壓、ARR、RPO 和供應可用性的提高所驅動的，因為我們繼續受益於我們的供應鏈團隊在過去幾個季度採取的行動。我們預計這些相同的因素將持續到 2024 財年，使我們對我們的長期目標有更大的知名度和信心。

For fiscal Q3, our guidance is we expect revenue growth to be in the range of 11% to 13%. We anticipate the non-GAAP gross margin to be in the range of 63.5% to 64.5%. Our non-GAAP operating margin is expected to be in the range of 33% to 34%, and our non-GAAP earnings per share is expected to range from $0.96 to $0.98. There's also a significant change to our full year fiscal '23 revenue and non-GAAP earnings per share guidance driven by these same factors. For fiscal year '23, we are raising our expectations for revenue growth to be in the range of 9% to 10.5% year-over-year. Non-GAAP earnings per share is expected to range from $3.73 to $3.78. In both our Q3 and full year guidance, we're assuming a non-GAAP effective tax rate of 19%. I'll now turn it back to Marilyn so we can move into the Q&A.

對於第三財季，我們的指導意見是預計收入增長將在 11% 至 13% 之間。我們預計非 GAAP 毛利率將在 63.5% 至 64.5% 之間。我們的非 GAAP 營業利潤率預計在 33% 至 34% 之間，我們的非 GAAP 每股收益預計在 0.96 美元至 0.98 美元之間。受這些相同因素的驅動，我們的 23 財年全年收入和非 GAAP 每股收益指導也發生了重大變化。對於 23 財年，我們將收入增長預期提高到 9% 至 10.5% 之間。非 GAAP 每股收益預計在 3.73 美元至 3.78 美元之間。在我們的第三季度和全年指導中，我們假設非 GAAP 有效稅率為 19%。我現在將把它轉回瑪麗蓮，這樣我們就可以進入問答環節了。

Thanks, Scott. I'm going to turn it over to Chuck just for a few comments before we start the Q&A.

謝謝，斯科特。在我們開始問答環節之前，我將把它交給查克，徵求他的一些意見。

Yes. Before we get into Q&A, I just wanted to send our condolences to those impacted by the earthquake in Turkey and Syria. It's been absolutely devastating to watch as the death toll has climbed, and we're working closely with our teams in the region to give them support and help on the ground as much as we can. We just want to let them know that we're all thinking about them, and we're here to help.

是的。在我們進入問答環節之前，我只想向在土耳其和敘利亞地震中受災的人們表示哀悼。目睹死亡人數攀升絕對是毀滅性的，我們正在與該地區的團隊密切合作，盡我們所能為他們提供支持和幫助。我們只是想讓他們知道我們都在為他們著想，我們隨時準備提供幫助。

Thanks, Chuck. Michelle, let's go ahead and open up the queue for questions and answers.

謝謝，查克。米歇爾，讓我們開始排隊提問和回答。

Thank you, Marilyn. Ittai Kidron, you may go ahead, with Oppenheimer & Company.

謝謝你，瑪麗蓮。 Ittai Kidron，你可以繼續與奧本海默公司合作。

Nice quarter, nice guide. I guess the big question is when you think about the outlook that you have for continued supply chain improvement, how long would the order backlog normalization process is going to take in your view? And maybe you can quantify on the quarter itself or perhaps on the guidance? When you look at the guidance, how much of that is coming from your ability to fulfill more versus the true underlying demand? I'm just trying to gauge for how long you can kind of keep this going at above normal growth rates for yourself.

不錯的季度，不錯的嚮導。我想最大的問題是，當您考慮持續改進供應鏈的前景時，您認為訂單積壓正常化過程需要多長時間？也許您可以量化本季度本身或指導？當您查看指南時，其中有多少來自您滿足更多需求的能力與真正的潛在需求？我只是想衡量你自己能以高於正常增長率的速度維持多久。

Yes, Ittai, thanks for the question. And shockingly enough, that was the first question I expected. So let me just summarize sort of what we're seeing and then I can give you more detail. But number one, let's start with the fact that our demand is stable. And that's first. Based on the sequentials that we saw, demand remained stable. And in fact, if you look out at our Q3 forecast, which we normally wouldn't give you, the current forecast in Q3 is also in line with historical ranges of sequentials. So that's the first piece.

是的，Ittai，謝謝你的提問。令人震驚的是，這是我預料到的第一個問題。所以讓我總結一下我們所看到的，然後我可以給你更多的細節。但第一，讓我們從我們的需求穩定這一事實開始。這是第一。根據我們看到的順序，需求保持穩定。事實上，如果你看看我們通常不會給你的第三季度預測，第三季度的當前預測也符合連續的歷史範圍。這是第一部分。

The second thing is, as Scott said, while we -- backlog came down 6% sequentially. It was up year-over-year, and we expect that we will end the fiscal year even with the guidance we gave you today with a backlog that's roughly double what we would normally end the year with. The other thing to take into consideration is the business transformation with 44% of our revenue now recurring really helps a great deal. And we have $23 billion of ARR, which we can actually renew in the next 12 months.

第二件事是，正如斯科特所說，而我們 - 積壓訂單連續下降了 6%。它同比增長，我們預計我們將在本財年結束時按照我們今天給你的指導，積壓的訂單大約是我們通常在年底結束時的兩倍。另一件需要考慮的事情是業務轉型，我們現在有 44% 的收入是經常性的，這確實有很大幫助。我們有 230 億美元的 ARR，實際上我們可以在接下來的 12 個月內更新。

So if you go back 8 or 9 years ago, we might have had to take orders for 75% of our revenue in any given quarter. And now we have 44% of our revenue coming from the balance sheet and recurring revenue. So all that said, we actually believe that we'll still be able to deliver -- we're confident that we'll deliver positive growth in fiscal '24, obviously, with pretty significant comps based on the guidance that we gave today.

因此，如果你回到 8 或 9 年前，我們可能不得不在任何給定季度接受占我們收入 75% 的訂單。現在我們有 44% 的收入來自資產負債表和經常性收入。所以綜上所述，我們實際上相信我們仍然能夠實現——我們有信心在 24 財年實現正增長，顯然，根據我們今天給出的指導，我們將實現相當可觀的業績增長。

Okay. I guess when I think normal, given your historical ranges before the pandemic, I always think about 4 to 6 is kind of the range plus/minus that you run at. Is it fair to say that from here on anything above is kind of order -- eating into backlog? And while your backlog is double, that can still mean that you can run above normal ranges for at least a couple of years, it sounds like, unless something unusual happens. Am I misinterpreting your comments?

好的。我想當我認為正常時，考慮到你在大流行之前的歷史範圍，我總是認為 4 到 6 是你跑步的加/減範圍。可以公平地說，從這裡開始，上面的任何事情都是一種秩序——吞噬積壓嗎？雖然你的積壓是雙倍的，但這仍然意味著你可以在正常範圍內運行至少幾年，這聽起來像是，除非發生異常情況。我誤解了你的評論嗎？

Scott, do you want to take that?

斯科特，你想接受嗎？

No, not at all, Ittai. But what I would say is it's obviously too early for us to guide fiscal '24. What we wanted to give you confidence is we have better visibility than we've ever had in the past, both from the backlog and the $17 billion -- almost $17 billion of RPO that's current, that's going to turn into revenue in the next 12 months in the ARR. But I -- and we're going to roll in backlog that's roughly double what it normally would be at the end of the year. So we have good confidence in where we're headed in fiscal '24. I think it's a bit too early given where we are in the year just at the end of our second quarter for us to be a little more precise on that.

不，一點也不，Ittai。但我要說的是，我們現在指導 24 財年顯然還為時過早。我們想讓您充滿信心的是，我們比以往任何時候都擁有更好的知名度，無論是積壓訂單還是 170 億美元——目前將近 170 億美元的 RPO，這將在未來 12 年內轉化為收入在 ARR 幾個月。但我——我們將積壓工作，這大約是年底通常情況下的兩倍。因此，我們對 24 財年的發展方向充滿信心。我認為，考慮到我們在第二季度末的一年中所處的位置，讓我們對此更加精確，我認為還為時過早。

Amit Daryanani From Evercore.

來自 Evercore 的 Amit Daryanani。

Congrats on a really good quarter from mine as well. I guess maybe if I think about the Secure, Agile Networking segment growing at 14%, that's really notable. And I don't think the industry is growing nearly close to that pace. So I'd love to understand, I mean, do you think you're starting to see some share gains come back towards Cisco, especially the supply chain starts to improve? Is that a tailwind that you see and perhaps that continues for the rest of the year? Maybe you could just talk about that and also maybe talk about how campus doing within that segment, that would be helpful.

祝賀我也獲得了一個非常好的季度。我想也許如果我考慮安全、敏捷網絡部分以 14% 的速度增長，那真的很值得注意。而且我不認為該行業的增長速度接近於該速度。所以我很想知道，我的意思是，你是否認為你開始看到一些份額收益回到思科，特別是供應鏈開始改善？這是你看到的順風嗎？也許會持續到今年餘下的時間？也許你可以談談這個，也可以談談校園在那個部分的表現，這會很有幫助。

Thanks, Amit. Let me take the share question because I think I've said on several calls that, obviously, market share is reflective of revenue and with our backlog that as we began to ship certain products that we would be a gainer of market share, and we certainly expect that when these numbers are digested and the new reports come out for Q4, that you'll see that to be the case.

謝謝，阿米特。讓我回答份額問題，因為我想我在好幾次電話會議上都說過，顯然，市場份額反映了收入，而我們的積壓情況表明，當我們開始運送某些產品時，我們將獲得市場份額，而且我們當然期望當這些數字被消化並且第四季度的新報告出來時，你會看到情況就是這樣。

One example is, during last quarter, our Wireless revenue was up 57% year-over-year. And I suspect that, that's going to be a share gainer. And the other thing to keep in mind is that market share is inexact. I would tell you that when we ship products into the web-scale infrastructure space, as an example, it goes into our routing reports and many of our competitors put it in data center switching. So it's very difficult in some cases to get complete apples-to-apples, but I do believe that as we continue to ship our backlog that we will be gaining share. Do you want to talk a little bit about the campus switching?

一個例子是，在上一季度，我們的無線收入同比增長了 57%。而且我懷疑，這將成為股票贏家。另一件要記住的事情是市場份額是不准確的。我會告訴你，當我們將產品運送到網絡規模的基礎設施空間時，例如，它進入我們的路由報告，我們的許多競爭對手將它放在數據中心交換中。因此，在某些情況下很難獲得完整的同類產品，但我確實相信，隨著我們繼續運送積壓訂單，我們將獲得份額。你想談談校園交換嗎？

Yes. Sorry, I missed that part of the question.

是的。對不起，我錯過了問題的那一部分。

Amit, can you repeat your question about the campus switching, the second part?

阿米特，你能重複你關於校園轉換的問題嗎？第二部分？

Yes. No I was just wondering, like within this context of 14% growth that you saw in that segment, how is campus performing for you very specifically? And how is the supply chain kind of alleviated over that [view]?

是的。不，我只是想知道，就像您在該細分市場中看到的 14% 的增長一樣，校園對您的表現如何？供應鍊是如何緩解這種[觀點]的？

Yes. Campus is doing well for us. And the supply chain while -- I don't want to leave the perception that supply chain just got better. Our supply chain team and our product engineering teams have worked pretty relentlessly over the last several quarters with product redesign, with qualifying alternative components, with working with our suppliers to get to their subcomponents to make sure we could free this up. So the increase in supply that's leading to some of the share gains that we're talking about is the result of a lot of hard work by a lot of people inside the company.

是的。校園對我們來說做得很好。而供應鏈——我不想留下供應鏈變得更好的看法。在過去的幾個季度裡，我們的供應鏈團隊和我們的產品工程團隊一直在不懈地努力，重新設計產品，使用合格的替代組件，與我們的供應商合作以獲取他們的子組件，以確保我們可以釋放它。因此，導致我們正在談論的一些股票收益的供應增加是公司內部很多人辛勤工作的結果。

And I think, frankly, it puts us in a better position than many of our peers in the industry right now from a supply chain standpoint. But -- the longer answer. The short answer is, yes, we're doing quite well in that space. And as we continue to deliver what we've just laid out as our guidance for the second half of this year, I think you'll continue to see share gain grow for us.

而且我認為，坦率地說，從供應鏈的角度來看，這使我們現在比業內許多同行處於更好的位置。但是 - 更長的答案。簡短的回答是，是的，我們在那個領域做得很好。隨著我們繼續提供我們剛剛制定的今年下半年的指導方針，我認為你會繼續看到我們的份額增長。

Got it. That's really helpful. And if I can just ask you really quick on your back half guidance is obviously fairly impressive. But in April quarter, you're sort of implying gross margins will be down 130 basis points year-over-year, I think, for the April quarter. Can you just talk about how much of that downtick you think is cyclical, things like the supply chain and logistics and so on versus structural? And what do you think normalized gross margin could look like for the company if supply chain is truly normalized?

知道了。這真的很有幫助。如果我只能問你，你的後半部分指導顯然相當令人印象深刻。但在 4 月季度，你有點暗示毛利率將同比下降 130 個基點，我認為，對於 4 月季度。你能談談你認為有多少是周期性的衰退，比如供應鍊和物流等等，而不是結構性的？如果供應鏈真正標準化，您認為公司的標準化毛利率會是什麼樣子？

Yes. The midpoint of the guide for the April quarter is about a 10 basis point improvement from the quarter we just announced. So we do see gross margins improving, and it's largely driven by -- it's less driven by cost. We're seeing some reduction in costs around logistics, in particular, but component costs are kind of staying where they are in most cases. It's more driven by the fact that as we ship the backlog more and more of what we ship, reflects the price increases that we put in place last year. So I think you'll see gross margins potentially continue to expand from where they are, maybe as much as 50 basis points in Q4.

是的。 4 月季度指南的中點比我們剛剛宣布的季度提高了約 10 個基點。因此，我們確實看到毛利率有所提高，這在很大程度上是由成本驅動的——它不太受成本驅動。我們看到物流成本有所降低，尤其是，但在大多數情況下，組件成本都保持在原位。這更多是由於我們運送越來越多的積壓貨物，反映了我們去年實施的價格上漲。所以我認為你會看到毛利率可能會繼續擴大，可能在第四季度高達 50 個基點。

Paul Silverstein with Cowen.

保羅西爾弗斯坦和考恩。

Chuck and Scott, I appreciate that you all addressed in your prepared remarks the visibility demand trend issue. But -- so my apologies, but I'd ask you to revisit, especially in your enterprise business, including government and U.S. federal, I'm sure you and your team are aware of what your competitors have [served]. I know, Chuck, you just addressed the market share issue. But can you give some more color in terms of [solidity] of the demand trends and the visibility that's translating into?

查克和斯科特，感謝你們在準備好的發言中都提到了可見性需求趨勢問題。但是 - 所以我很抱歉，但我會請你重新審視，特別是在你的企業業務中，包括政府和美國聯邦，我相信你和你的團隊知道你的競爭對手已經[服務]。我知道，查克，你剛剛談到了市場份額問題。但是，您能否在需求趨勢的 [穩固性] 和轉化為的可見性方面給出更多的顏色？

Well, as I said, the -- our enterprise and commercial business, which is reflective of how most of our peers represent enterprise, that was up double digits sequentially, which is in line with our historical ranges. And public sector actually performed better than -- it was above our historical ranges during the quarter.

好吧，正如我所說，我們的企業和商業業務反映了我們大多數同行代表企業的方式，連續增長了兩位數，這與我們的歷史範圍一致。公共部門的表現實際上好於 - 它在本季度高於我們的歷史範圍。

So the other thing I would point out is that our quarter itself from a linearity perspective was quite normal, and we actually had a -- we're unique in that we had the January month in our Q2. And one of the questions that we had was what's going to happen to budget as we enter into calendar '23. And we clearly -- we actually finished stronger than we started the quarter. So those are just a few data points for you.

所以我要指出的另一件事是，從線性角度來看，我們的季度本身是非常正常的，而且我們實際上有一個 - 我們的獨特之處在於我們在第二季度有 1 月份。我們遇到的問題之一是，當我們進入 23 年日曆時，預算會發生什麼變化。而且我們很明顯 - 我們實際上比本季度開始時更強大。所以這些只是你的幾個數據點。

And I think if you look at what our customers are focused on right now, I mean think about some of their top priorities. They've got a complete rearchitecture of their applications to be cloud native, running in both public and/or private clouds. They're having to rearchitect their infrastructure to actually deal with the changing traffic patterns that multi-cloud brings to them. They're dealing with hybrid work and how do I transform our IT infrastructure for that. They're dealing with cybersecurity threats on a massive scale, and they're also all focused on sustainability, which is leading to our IoT business growing significantly as we connect industrial systems for our customers. So if you think about those big 5 trends, we're actually in the middle of those with all of our customers. So we feel good about where we are.

我想如果你看看我們的客戶現在關注的是什麼，我的意思是想想他們的一些首要任務。他們對其應用程序進行了完整的重構，使其成為雲原生應用程序，在公共雲和/或私有云中運行。他們不得不重新設計他們的基礎設施，以實際應對多雲給他們帶來的不斷變化的流量模式。他們正在處理混合工作，我該如何為此轉變我們的 IT 基礎架構。他們正在大規模應對網絡安全威脅，而且他們也都專注於可持續性，這導致我們的物聯網業務在我們為客戶連接工業系統時顯著增長。因此，如果您考慮這 5 大趨勢，我們實際上與我們所有的客戶都處於其中。所以我們對自己的處境感覺良好。

And the last thing I'll say is that I was in Tokyo and Singapore last week and at the same time, a lot of our -- my leadership team were in Amsterdam for Cisco Live Europe, and no one is talking about cutting technology spending right now. Everybody seems very committed to it. I think the underlying power of technology as it relates to all of our organization strategy is just too strong right now.

最後我要說的是，上週我在東京和新加坡，與此同時，我們的很多 - 我的領導團隊都在阿姆斯特丹參加 Cisco Live Europe，沒有人在談論削減技術支出現在。每個人似乎都非常投入。我認為與我們所有組織戰略相關的技術的潛在力量現在太強大了。

Right. And Scott, back on the margin question. I appreciate you got to walk before you run, but you're now 3 percentage points roughly below peak on both gross and operating in terms of the initial recovery. Any thoughts for how much of the 3 percentage points? Can you visually get back to 67 gross? Can you get back to 35 operating and it's just a function of time or because of the price increases with respect to [semis] or other things, that's just a bridge too far?

正確的。斯科特，回到保證金問題上。我感謝你在跑步之前先走，但就初始恢復而言，你現在的總收入和運營水平都比峰值低了 3 個百分點。想知道這 3 個百分點中有多少是多少？你能在視覺上回到 67 毛嗎？你能回到 35 運營，這只是時間的函數，還是因為 [半成品] 或其他東西的價格上漲，這只是一座太遠的橋樑？

Yes. I mean as you talk long term, there's a number of tailwinds that will come into gross margin, so not necessarily talking about our guide for fiscal '23, but longer term, there are several things that are going to be a tailwind there. One is continuing to work our way through the backlog and reflect the price increases. I think we will continue to see leverage in logistics costs, both from a reduction in the freight cost per kilo, but also in the mix of how we shift between what has supply air freight and what will go in the ocean. So I think we'll see some leverage there as well.

是的。我的意思是，當你談論長期時，毛利率會有很多順風，所以不一定要談論我們的 23 財年指南，但從長遠來看，有幾件事會成為順風。一個是繼續處理積壓訂單並反映價格上漲。我認為我們將繼續看到物流成本的槓桿作用，這既來自每公斤貨運成本的降低，也來自我們如何在空運供應和海運之間轉換的方式。所以我認為我們也會在那裡看到一些影響力。

I don't see a lot of our component providers outside of commodity areas like memory lining up to reduce cost to us, right? So I think it will be the combination of mix that will be beneficial to us and some cost leverage in the noncomponent areas that will drive that north.

在內存等商品領域之外，我沒有看到很多我們的組件供應商排隊來降低我們的成本，對吧？因此，我認為這將是對我們有利的組合和非組件領域的一些成本槓桿的結合，這將推動它向北發展。

So you think you can get back to 67, 35?

所以你認為你可以回到 67、35 歲？

Yes. So are you asking me for a 5-year forecast on gross margin, Paul, is that where you're going?

是的。那麼你是要我對毛利率進行 5 年預測嗎，保羅，那是你要去的地方嗎？

Yes, long term. Long term, can you get back to that model?

是的，長期的。從長遠來看，你能回到那個模型嗎？

Long term, there's definitely leverage to push it back to where it's been historically, for sure, and if not beyond.

從長遠來看，肯定有槓桿作用將其推回到歷史上的水平，如果不是超越的話。

Meta Marshall with Morgan Stanley.

元馬歇爾與摩根士丹利。

Great. I'm assuming as you're having conversations with customers, they're looking for more flexible subscription methods and part of your subscription transition has kind of been evolving kind of the ELA model or kind of the subscription model you guys have had. And I just wanted to get a sense of where you think you are on some of the kind of subscriptionization of some of your products and whether you are seeing a big impact to that right now? And then just -- maybe just some commentary about how you see the M&A environment currently?

偉大的。我假設當您與客戶進行對話時，他們正在尋找更靈活的訂閱方法，並且您的訂閱過渡的一部分已經在進化 ELA 模型或你們已經擁有的訂閱模型。我只是想了解一下您認為您在某些產品的某種訂閱方面所處的位置，以及您現在是否看到了重大影響？然後 - 也許只是關於您如何看待當前併購環境的一些評論？

Meta, thank you. So we are probably, I'd say, still in the early innings of transitioning the traditional portfolio to subscription models. The team is working hard on that right now. And we'll just continue to keep you updated. But I think we're several quarters away from really having anything to speak about relative to the size of that business, but we're working hard on being able to deliver that.

元，謝謝。因此，我想說，我們可能仍處於將傳統產品組合過渡到訂閱模式的早期階段。該團隊目前正在為此努力。我們將繼續為您提供最新信息。但我認為我們距離真正有關於該業務規模的任何話題還有幾個季度的距離，但我們正在努力實現這一目標。

And the key is to give customers flexibility. That's what -- over the last 7 years or so, we have disaggregated hardware and software [and silicon]. We virtualized software to run on x86 appliances. So we want to give our customers whatever kinds of flexibility that they would like. So that's the first part.

關鍵是要給客戶靈活性。這就是 - 在過去 7 年左右的時間裡，我們分解了硬件和軟件 [和矽]。我們將軟件虛擬化以在 x86 設備上運行。因此，我們希望為客戶提供他們想要的任何類型的靈活性。這是第一部分。

On the M&A side, I would say our strategy, as you would expect, has not changed. I think the market dynamics have changed, and I think that the longer valuations remain somewhat muted from their peaks. I think some of the companies are probably coming to more of a real position on what -- how long these valuations may exist and were prior valuations even realistic in the first place. So we continue to stay aware of what's going on. We continue to scan the marketplace, but our strategy remains the same.

在併購方面，正如您所期望的那樣，我想說我們的戰略沒有改變。我認為市場動態已經改變，而且我認為較長期的估值仍相對於峰值有所減弱。我認為一些公司可能會更真實地了解這些估值可能存在多長時間，以及之前的估值是否首先是現實的。因此，我們繼續了解正在發生的事情。我們繼續審視市場，但我們的策略保持不變。

Simon Leopold with Raymond James.

西蒙利奧波德和雷蒙德詹姆斯。

I wanted to see if we could talk a little bit about the trends you're seeing in data centers. In the prepared remarks, I think you mentioned campus was good, but data center was weak. And I guess maybe I'm looking for not just the switching part of it, but your UCS business. And what are the broader trends? How much of that is reflective of hyperscale [slowing] versus the broader market? Just trying to unpack that a bit.

我想看看我們是否可以談談您在數據中心看到的趨勢。在準備好的評論中，我想你提到校園很好，但數據中心很弱。我想也許我不僅在尋找它的交換部分，而且在尋找您的 UCS 業務。更廣泛的趨勢是什麼？其中有多少反映了超大規模 [放緩] 與更廣泛的市場？只是想稍微解開一下。

Yes, I'll make a couple of comments, and Scott, I don't know if you want to give any detail. But I would say that our customers are increasingly balanced around how they're thinking about private cloud versus public cloud. And so we've seen continued focus on revitalizing the private data center infrastructure. And I'll let Scott speak to -- I'm not sure on the infrastructure side or UCS, if you want to share that.

是的，我會發表一些評論，斯科特，我不知道你是否想提供任何細節。但我要說的是，我們的客戶越來越平衡他們對私有云和公共雲的看法。因此，我們看到了對振興私有數據中心基礎設施的持續關注。如果你想分享的話，我會讓 Scott 發言——我不確定是在基礎設施方面還是 UCS 方面。

But the other thing I would point out, Simon, as I said in my comments earlier about market share, everything that we sell in the infrastructure within web scale flows into our routing market share numbers in our routing business. So it doesn't actually boost our data center switching the way we report it. So it's a little bit of an apples-and-oranges issue. I just want to make sure you understood that.

但我要指出的另一件事是，西蒙，正如我之前在評論市場份額時所說的那樣，我們在網絡規模基礎設施中銷售的所有產品都會流入我們路由業務中的路由市場份額數字。所以它實際上並沒有促進我們的數據中心改變我們報告它的方式。所以這有點像蘋果和橘子的問題。我只是想確保你明白這一點。

No, that's a really good point. And on UCS, if that's the root of your question, Simon, we are seeing nice growth in UCS as well. And at least based on our calculations, we feel like we're gaining share there as well.

不，這是一個非常好的觀點。在 UCS 上，如果這是你問題的根源，西蒙，我們也看到 UCS 的良好增長。至少根據我們的計算，我們覺得我們也在那裡獲得了份額。

And then just maybe a quick follow-up. I was a little bit surprised that the metric of hardware attached software in backlog is $2 billion, same as it was in the prior quarter. I would have guessed it would have come down with the -- basically improvement of shipping the hard -- associated hardware. So maybe I don't understand that value or you could talk a little bit to why that $2 billion didn't come down with the extra shipments of the related hardware.

然後可能只是快速跟進。我有點驚訝積壓中的硬件附加軟件指標為 20 億美元，與上一季度相同。我猜想它會隨著硬相關硬件的運輸——基本上得到改進而下降。所以也許我不明白這個價值，或者你可以談談為什麼這 20 億美元沒有隨著相關硬件的額外出貨量下降。

Yes. It's a great question, Simon. And we actually did see -- if you noticed, our overall software revenue grew 10% this quarter, so back to double-digit growth. And some of that growth is on the back of shipping some of the backlog out, both the hardware and the software that's had in backlog. So we are seeing the benefit of shipping that out. At the same time, as Chuck said earlier, demand remains steady. And so our overall backlog, while it came down only about 6% sequentially, there's still a significant amount of software stuck in that backlog, some of it attached to hardware.

是的。這是一個很好的問題，西蒙。我們確實看到——如果你注意到的話，本季度我們的整體軟件收入增長了 10%，回到兩位數的增長。其中一些增長是由於運送了一些積壓的產品，包括積壓的硬件和軟件。因此，我們看到了將其運送出去的好處。與此同時，正如查克早些時候所說，需求保持穩定。因此，我們的整體積壓，雖然它僅按順序下降了約 6%，但仍有大量軟件滯留在積壓中，其中一些與硬件相關。

And software as a total percent of revenue or product revenue, that metric, where is that now?

軟件佔收入或產品收入的總百分比，這個指標，現在在哪裡？

Yes. Just for software, it's in the 30% range. Overall, we're in the 44% range.

是的。就軟件而言，它在 30% 的範圍內。總體而言，我們處於 44% 的範圍內。

Sami Badri from Credit Suisse.

來自瑞士信貸的 Sami Badri。

I had one quick one and a follow-up. The first one is on just the data center switching redesign. You guys made several mentions regarding supply and the team kind of working hard to get redesign through. But does that actually mean the data center switching portfolio is now completed with redesign and that part really did drive the better revenue guidance for the year? So that's my first question.

我有一個快速的和一個後續的。第一個是關於數據中心交換的重新設計。你們多次提到供應和團隊正在努力完成重新設計。但這是否真的意味著數據中心交換產品組合現在已經完成重新設計，並且這部分確實推動了今年更好的收入指導？這是我的第一個問題。

The other one is we've seen several companies report elongated lead times for sales cycles and extra signatures and all these other elements. And I appreciate, Chuck, you did hit on the fact that you aren't seeing any kind of tech spend get cut. But are you seeing some kind of resistance or slowdown as far as sales cycles impacting the speed at which you guys have historically done business? And I take into account also I appreciate your comment regarding linearity. But I just wanted to kind of ask this question to get it through.

另一個是我們已經看到幾家公司報告銷售週期和額外簽名以及所有其他元素的交貨時間延長。我很感激，查克，你確實發現了一個事實，即你沒有看到任何類型的技術支出被削減。但是，就銷售週期影響你們過去開展業務的速度而言，您是否看到某種阻力或放緩？我也考慮到您對線性度的評論，我很感激。但我只是想問這個問題來解決這個問題。

Let me take the second one first, and then Scott, you can talk about the data center switching redesign. We absolutely are seeing some elongated sales cycles. What our teams have told me is that, in many cases, there are extra signatures required, we just seem to, in general, be getting them. It just takes a little bit longer. So -- but look, it's a complex world right now. But if you look back at historical sort of what we would consider a bit of a crisis or a complex world environment, I've experienced demand falling off a cliff, and we obviously haven't seen that in the current situation. Scott, do you want to talk about the redesign?

讓我先講第二個，然後是斯科特，你可以談談數據中心交換的重新設計。我們絕對看到一些延長的銷售週期。我們的團隊告訴我的是，在許多情況下，需要額外的簽名，一般來說，我們似乎只是得到了它們。只是需要更長的時間。所以 - 但是看，現在是一個複雜的世界。但如果你回顧一下我們認為有點危機或複雜世界環境的歷史，我經歷過需求從懸崖上掉下來，而我們顯然在目前的情況下還沒有看到。斯科特，你想談談重新設計嗎？

Just to finish up on that, pipeline looks strong, close rates still look good. So we're not seeing a huge difference there. There is, in some cases, a slight elongation. On the redesign, that's absolutely contributed to the growth that we're seeing, particularly in Secure, Agile Networks. Less so from -- in terms of releasing the next successor product, more being able to design around problematic components that we couldn't get supply of. And as we work those redesigns to build the product around components, we can get our hands on, that's what we're talking about when we talk about the redesign. And so there's no question, that's driven some of the growth that you saw in the quarter we just announced. We'll continue to drive the significant growth that we've put out for the second half.

最後，管道看起來很強勁，收盤價看起來仍然不錯。所以我們在那裡沒有看到巨大的差異。在某些情況下，會有輕微的伸長。在重新設計中，這絕對有助於我們看到的增長，特別是在安全、敏捷網絡方面。從發布下一個後續產品的角度來看，更少的是能夠圍繞我們無法獲得供應的有問題的組件進行設計。當我們進行這些重新設計以圍繞組件構建產品時，我們可以動手，這就是我們在談論重新設計時所談論的內容。因此，毫無疑問，這推動了您在我們剛剛宣布的季度中看到的一些增長。我們將繼續推動下半年實現的顯著增長。

And to be clear, we will continue to see growth into fiscal '24. All the trends we've talked about that are driving the uptick that you see in our guidance in the second half of this year, those trends continue into fiscal '24, and we continue to expect nice growth there. I just think it's a little too early to start to quantify that and give you a guide.

需要明確的是，我們將繼續看到 24 財年的增長。我們談到的所有趨勢都在推動您在今年下半年的指導中看到的增長，這些趨勢將持續到 24 財年，我們繼續預計那裡會有良好的增長。我只是認為現在開始量化並為您提供指導還為時過早。

George Notter From Jefferies.

來自 Jefferies 的 George Notter。

I guess I wanted to ask about your impressions of backlog and product orders relative to 3 months ago. And think I have this correct. About 3 months ago, you guys were talking about if product orders were down 10% for the year, then your product backlog at fiscal year-end would be 2 to 3x higher than the normal kind of $4 billion or $5 billion range. And Chuck, I think you were quick to say that it didn't feel like a 10% order decline [within] the cards for you. So it feels now like you are going to burn more backlog than you were thinking previously, and orders will be a bit worse than previous. Am I perceiving that correctly? And what are your thoughts there?

我想我想問一下您對 3 個月前的積壓訂單和產品訂單的印象。並認為我是正確的。大約 3 個月前，你們在談論如果今年的產品訂單下降 10%，那麼你們在財政年度末的產品積壓將比正常的 40 億美元或 50 億美元範圍高出 2 到 3 倍。查克，我想你很快就說，對你來說，感覺不像是 10% 的訂單下降 [within] 卡。所以現在感覺你要燒掉比你以前想像的更多的積壓訂單，訂單會比以前差一些。我的理解正確嗎？你有什麼想法？

Yes, George, I'll take that, Chuck, and then you can jump in. I don't think it is burning down backlog. We clearly are -- the good news is we're able to ship more of the backlog. That's good news for our customers. They're waiting for these components. They've got projects that they're holding up that they need to get done. It's good news for our channels in a sense that the channel is sitting on, in some case, partial shipments. They need that last box, so they can go out and implement that and relieve some of the pressure on their own working capital.

是的，喬治，我會接受的，查克，然後你就可以加入了。我不認為這是在減少積壓。我們顯然是——好消息是我們能夠運送更多的積壓訂單。這對我們的客戶來說是個好消息。他們正在等待這些組件。他們有他們需要完成的項目。從某種意義上說，這對我們的渠道來說是個好消息，因為渠道在某些情況下處於部分發貨狀態。他們需要最後一個盒子，這樣他們就可以出去實施它並減輕他們自己營運資金的一些壓力。

So it's not -- I'm responding to the burning down backlog. This is good news, our ability to ship the backlog, and that's what you see reflected there in the guide down -- or sorry, in the guide up that we have in the second half of the year. We have -- what you see now is a significantly higher revenue projection for the second half of the year than we had before. And some of that clearly is our ability to ship backlog because of the great job our team has done to free up supply.

所以這不是——我是在回應積壓的工作。這是個好消息，我們有能力運送積壓的訂單，這就是您在下半年的指南中看到的——或者抱歉，在我們下半年的指南中。我們 - 你現在看到的是今年下半年的收入預測明顯高於我們之前的預測。其中一些顯然是我們運送積壓訂單的能力，因為我們的團隊在釋放供應方面所做的出色工作。

And I would say on the demand side, if I go back 90 days, I would say, in general, I think there was more risk, at least there felt like there was more risk. And when I talk to my customers, there's more uncertainty. And even when you hear -- listen to the news and we talk -- I talked to my colleagues, we were in [Davos], it feels like the longer we go without seeing some major shift, then the better our customers are feeling. So obviously, we're not immune to anything, and we'll have to continue to monitor it. But after traveling in Asia last week, our team being in Europe, I actually saw customers in New York while I was here this week, and customers are moving forward.

我會說在需求方面，如果我回到 90 天，我會說，總的來說，我認為風險更大，至少感覺風險更大。當我與客戶交談時，存在更多的不確定性。甚至當你聽到——聽新聞和我們交談——我和我的同事交談時，我們在[達沃斯]，感覺我們在沒有看到重大轉變的情況下走的時間越長，我們的客戶感覺就越好。很明顯，我們不能對任何事情免疫，我們必須繼續監測它。但是上週在亞洲旅行之後，我們的團隊在歐洲，我這週在紐約時實際上看到了客戶，客戶正在前進。

David Vogt with UBS.

大衛沃格特與瑞銀。

Great. And I apologize if you covered it. My line cut out a little bit before. Scott, I'm just trying to clarify the order versus the backlog comment. I think I'm not mistaken, your run rate backlog had been sort of roughly $5 billion as you exited fiscal year. So are you suggesting to us that the backlog comes down by about $3.5 billion over the next several quarters? And if that's the case, if I just kind of back that out of your guidance, would that imply sort of that the business is effectively flat year-over-year ex the backlog drawdown as we exit '23 into '24? And then I have a quick follow-up.

偉大的。如果你覆蓋了它，我深表歉意。我的線以前剪了一點。斯科特，我只是想澄清訂單與積壓評論。我想我沒有弄錯，當你退出財政年度時，你的運行率積壓大約是 50 億美元。那麼，您是否建議我們在接下來的幾個季度中積壓訂單減少約 35 億美元？如果是這樣的話，如果我只是從你的指導中支持這一點，那是否意味著隨著我們從 23 年退出到 24 年，在積壓訂單減少之前，該業務實際上同比持平？然後我有一個快速跟進。

Yes. So let me try and walk through some of the moving parts there, David. It's a great question. What we said previously is we thought we would end the year with somewhere between 2 and 3x normal backlog. And normal backlog, as we said last quarter, is between $4 billion and $5 billion at the end of the year. What we now see is that it's still going to be roughly double -- what -- that same range. So there's definitely our ability to ship some out of the backlog, which is, again, great news for our customers and for our partners.

是的。大衛，讓我試著介紹一下那裡的一些活動部分。這是一個很好的問題。我們之前所說的是，我們認為我們將以 2 到 3 倍的正常積壓來結束今年。正如我們上個季度所說，到年底，正常的積壓訂單在 40 億至 50 億美元之間。我們現在看到的是，它仍將大致翻倍——什麼——相同的範圍。因此，我們絕對有能力從積壓訂單中運送一些貨物，這對我們的客戶和合作夥伴來說也是個好消息。

The one piece that's missing in your equation is, as we ship the backlog, remember, we said there's more than $2 billion of software in there. A lot of that software is ratable. So as soon as we ship it, it doesn't all drop into the revenue stream. It ends up dropping into deferred revenue and being recognized over time. So there's a -- you have to consider not just the reduction in backlog, what's the uptick in the revenue guide, but also how much of this is going to contribute to growth in deferred revenue. That may be the piece that you're missing.

在你的等式中缺少的一件是，當我們運送積壓工作時，請記住，我們說過那裡有超過 20 億美元的軟件。很多軟件都是可評價的。因此，一旦我們發貨，它並不會全部進入收入流。它最終進入遞延收入並隨著時間的推移得到確認。所以有一個 - 你不僅要考慮積壓的減少，收入指南的增長情況，還要考慮其中有多少將有助於遞延收入的增長。那可能是您缺少的部分。

Got it. And then maybe just as a quick follow-up. So as we enter, let's say, the next fiscal year, I mean, given your excellent work on supply chain and the team has done a phenomenal job, would that imply -- I mean, basically, we could be back at normalized backlog within a quarter, maybe 2 at the worst-case scenario if trends hold consistent where we are today. Is that a reasonable expectation?

知道了。然後可能只是快速跟進。因此，當我們進入下一個財政年度時，我的意思是，鑑於你在供應鏈方面的出色工作以及團隊所做的出色工作，這是否意味著 - 我的意思是，基本上，我們可以回到正常的積壓狀態一個季度，如果趨勢與我們今天的情況保持一致，在最壞的情況下可能是 2 個季度。這是一個合理的期望嗎？

Rather than try to say it's a quarter or it's 2 quarters, I do expect it to normalize in fiscal '24.

而不是試圖說這是一個季度或兩個季度，我確實希望它在 24 財年正常化。

Tal Liani with Bank of America.

美國銀行的 Tal Liani。

Great. He stole my thunder with the previous question. That was exactly my question. So I want to -- I understand -- I want to understand something just a clarification on what you just answered. So at the minimum, the decline in the backlog was $600 million at the minimum because if end of year is going to be $8 million to $10 million, take 6% of that and the backlog is now higher. So that means that at the minimum, your backlog declined $600 million. And that means that product growth, we should take out some of the $600 million because some of it goes into deferred revenue. Am I correct with what you just answered?

偉大的。他用前面的問題搶了我的風頭。這正是我的問題。所以我想——我明白——我想了解一些事情，只是對你剛才回答的內容進行澄清。因此，至少，積壓訂單的減少至少為 6 億美元，因為如果年底將達到 800 萬至 1000 萬美元，則佔其中的 6%，現在積壓訂單會更高。因此，這意味著您的積壓訂單至少減少了 6 億美元。這意味著產品增長，我們應該拿出 6 億美元中的一部分，因為其中一部分進入遞延收入。我對你剛才的回答是否正確？

Yes. Well, you're close. Let me run through it again, Tal, and if it's still not clear, we can catch in the follow-up. The 6% was the decline in backlog from Q1 to Q2, right? So we were able to work off about 6% of the backlog that we came into the quarter with. What we've said is, at the time that we gave you that Q2 guide in the full year, the previous full year guide, we expected to end the year with somewhere between 2 and 3x our normal backlog. We're not saying it's going to be roughly double the normal backlog. Some of that, obviously, will ship out and will be a part of the significant guide up that we've given you in second half revenue. Some of it, instead of turning into immediate revenue, will go into deferred revenue and be recognized ratably over time.

是的。好吧，你很接近。讓我再過一遍，Tal，如果還是不清楚，我們可以在後續跟進。 6% 是從 Q1 到 Q2 的積壓下降，對吧？因此，我們能夠處理本季度約 6% 的積壓工作。我們所說的是，在我們向您提供全年第二季度指南時，即之前的全年指南，我們預計今年年底的積壓量將達到正常積壓量的 2 到 3 倍。我們並不是說這將是正常積壓的大約兩倍。顯然，其中一些將發貨，並將成為我們在下半年收入中為您提供的重要指南的一部分。其中一些不會立即轉化為收入，而是會進入遞延收入，並隨著時間的推移得到相應的確認。

And show up in RPO.

並出現在 RPO 中。

I hope that's -- yes, it will show up in deferred revenue and RPO. I hope that's clear, Tal. If not, we can follow up...

我希望那是——是的，它會出現在遞延收入和 RPO 中。我希望這很清楚，塔爾。如果沒有，我們可以跟進...

Yes. Very clear. So my question -- I want to go back to the basics and understand. Last quarter, we were all concerned about environment slowing down. We don't hear you saying environment continues to slow down. We didn't hear Arista saying it. We didn't hear you saying that service providers were weak. Can you take us through the big customer account and tell us what is the situation of spending with your enterprise customers, commercial customers, service provider customers? Did the environment further deteriorate from the previous quarter? Or did it stabilize? And does it make you think that at least the trends so far, the year would continue to be normal on a sequential basis? Or do you expect some more deterioration going forward?

是的。非常清楚。所以我的問題——我想回到基礎並理解。上個季度，我們都擔心環境放緩。我們沒有聽到你說環境繼續放緩。我們沒有聽到 Arista 這麼說。我們沒有聽到你說服務提供商很弱。你能不能帶我們通過大客戶賬戶，告訴我們你的企業客戶、商業客戶、服務提供商客戶的消費情況如何？環境是否比上一季度進一步惡化？還是穩定了？這是否讓您認為至少到目前為止的趨勢，這一年將繼續按順序正常？還是您預計未來會出現更多惡化？

Yes, Tal. So we -- on the enterprise and commercial space, we saw a double-digit sequential growth, which is in line with what we've seen historically. And as I said, public sector was actually higher than historical ranges and federal was -- U.S. Federal was extremely strong during the quarter from a demand perspective.

是的，塔爾。所以我們——在企業和商業領域，我們看到了兩位數的連續增長，這與我們歷史上看到的一致。正如我所說，公共部門實際上高於歷史範圍，而聯邦——從需求的角度來看，美國聯邦在本季度非常強勁。

On the service provider side, I think you're seeing many of our competitors and peers, some of them anyway, don't give order data. And so I think for us, those customers are the ones who did the most planning for long-term ordering. So as lead times begin to come down, we would expect them to change their ordering patterns and they've already got 6 to 12 months' worth of consumption lined up in the backlog. So we'll see that normalize over the next few quarters.

在服務提供商方面，我想你會看到我們的許多競爭對手和同行，無論如何，其中一些不提供訂單數據。因此，我認為對我們來說，這些客戶是為長期訂購制定最多計劃的客戶。因此，隨著交貨時間開始縮短，我們預計他們會改變他們的訂購模式，並且他們已經在積壓訂單中排隊了 6 到 12 個月的消費量。因此，我們將在接下來的幾個季度看到這種情況正常化。

I will say in the web-scale space, there are roughly 35 use cases or franchises within the largest players, and we've actually been designed into 18 of those at this point. And we are very confident that we'll continue to get designed in. I got a note today that we had just got noticed about a new design win today. And so we're still very optimistic long term. We just think it's a short-term normalization for our service provider space.

我要說的是，在網絡規模的空間中，最大的參與者中大約有 35 個用例或特許經營權，目前我們實際上已經設計到其中 18 個。我們非常有信心我們將繼續參與設計。我今天收到一條消息，我們剛剛注意到今天贏得了一項新的設計。因此，從長遠來看，我們仍然非常樂觀。我們只是認為這是我們服務提供商空間的短期正常化。

Got it. Layoffs and the economic slowdown. My question was whether these factors you see an impact on your business on orders or they stabilized from previous quarter?

知道了。裁員和經濟放緩。我的問題是，您認為這些因素是否對您的訂單業務產生影響，或者它們從上一季度開始穩定下來？

Well, -- you mean layoffs in -- like in our customers?

好吧，你的意思是裁員 - 就像我們的客戶一樣？

Yes, yes, across the industry.

是的，是的，整個行業。

Yes. Well, if you think about what occurred, there was a lot of companies that had a massive surge in employment, and we didn't. But I think the thing that we're seeing right now is that we've seen the sequential growth be in line and some -- like it was towards the lower end. So it's not performing at the highest end, but I think that it's in range. And if you -- and I also shared that in Q3, our current forecast is also in line sequentially with historical ranges, which we normally don't give. We just wanted you guys to have that visibility. So look, it's certainly an uncertain time, and I'm not -- I don't want to paint a picture that we're immune and I don't want to paint a picture that every customer is spending everywhere on everything. But we've been able to maintain and continue to see our customers moving forward with projects. And the one thing that was really encouraging for me was to see January as strong as it was, given our -- the uncertainty around '23 budgets.

是的。好吧，如果你想想發生的事情，有很多公司的就業人數激增，而我們沒有。但我認為我們現在看到的是，我們已經看到連續增長是一致的，而且有些——就像是朝著低端發展一樣。所以它沒有在最高端表現，但我認為它在範圍內。如果你——我也在第三季度分享了這一點，我們目前的預測也與我們通常不給出的歷史範圍相一致。我們只是想讓你們有這樣的知名度。所以看，這肯定是一個不確定的時期，我不是——我不想描繪一幅我們免疫的畫面，我不想描繪一幅每個客戶都在任何地方消費的畫面。但我們已經能夠維持並繼續看到我們的客戶推進項目。對我來說真正令人鼓舞的一件事是，考慮到我們的 23 年預算的不確定性，一月份的表現仍然強勁。

Tim Long with Barclays.

巴克萊銀行的蒂姆·朗。

(inaudible) get 2 in here. One, could you talk a little bit about, obviously, the enterprise campus is still very strong. But I think traditionally, that's kind of a GDP-ish type of business that has been running above that. And it sounds like your confidence for next year is pretty strong as well.

（聽不清）在這裡得到 2。第一，你能談談嗎，很明顯，企業園區仍然非常強大。但我認為傳統上，這是一種高於 GDP 的業務。聽起來您對明年的信心也很強。

So maybe, Chuck, any insights like what's kind of different there? Are we starting to decouple from like macro GDP for that campus networking fees? Any thoughts there would be great. And then second, obviously, a lot of excitement out there about AI, ChatGPT, all that stuff. Just curious what you think for your data center and cloud businesses, what kind of impact if there's kind of more of an arms race with big customers around AI, what that would mean for switching and routing business for you guys?

所以也許，查克，有什麼不同的見解嗎？我們是否開始為校園網絡費用與宏觀 GDP 脫鉤？任何想法都會很棒。其次，很明顯，人工智能、ChatGPT 以及所有這些東西令人興奮。只是好奇你對你的數據中心和雲業務的看法，如果圍繞 AI 與大客戶進行更多的軍備競賽會產生什麼樣的影響，這對你們的交換和路由業務意味著什麼？

Thanks, Tim. So first one, on enterprise campus, I do think that the pandemic was a great educator for our customers about the need to maintain modernized infrastructure because moving into the pandemic, I think it became quite obvious to many of our customers that they had not been updating and they had -- they were sweating assets a little longer. So that's one thing that's shifted.

謝謝，蒂姆。因此，首先，在企業園區，我確實認為大流行對我們的客戶來說是一個很好的教育，讓他們知道維護現代化基礎設施的必要性，因為進入大流行後，我認為我們的許多客戶已經很明顯地意識到他們沒有更新他們有 - 他們的資產出汗時間更長了。所以這是一件事發生了變化。

The second is we're really seeing -- these trends of multi-cloud, the trend of hybrid work and the overall rearchitecture of their networks. If you really think about what -- how we built networks for 20 years, we built it on a premise that we have branches and we have a private data center, and all the traffic flows are very understood. Now I have to upgrade my entire infrastructure to deal with this brand-new world that I live in, supporting hybrid work, supporting hybrid cloud, et cetera. So I think the -- that's been driving a lot of this as well as safety in the office, IoT, creating new experiences to get our employees back to work, et cetera. So that's what I think has been driving a lot of the enterprise campus stuff.

第二個是我們真正看到的——多雲的這些趨勢、混合工作的趨勢以及他們網絡的整體重構。如果你真的想一想我們是如何構建網絡 20 年的，我們構建它的前提是我們有分支機構，我們有一個私有數據中心，而且所有的流量都非常清楚。現在我必須升級我的整個基礎設施來應對我生活的這個全新的世界，支持混合工作，支持混合雲等等。所以我認為 - 這一直在推動很多事情以及辦公室安全，物聯網，創造新體驗讓我們的員工重返工作崗位，等等。所以這就是我認為一直在推動很多企業園區的東西。

As it relates to your second question around the AI play, I think that, look, these AI networks that are being built, whether it's in web scale or whether we have some of our largest enterprise customers that are building AI networks and training AI algorithms, these are -- like in the web-scale space, they're like bigger than the core infrastructure networks that they're running, which was astonishing to me when I learned that. And the network performance required is 3 to 4x what they've historically needed. And so this is a massive opportunity for us and we're in active discussions with lots of customers around it. And so we do think that this shift is going to create a good opportunity for us in the future.

關於你關於 AI 遊戲的第二個問題，我認為，看，這些正在構建的 AI 網絡，無論是網絡規模，還是我們有一些最大的企業客戶正在構建 AI 網絡和訓練 AI 算法，這些 - 就像在網絡規模的空間中一樣，它們比它們正在運行的核心基礎設施網絡更大，當我了解到這一點時，這讓我感到驚訝。所需的網絡性能是他們過去需要的 3 到 4 倍。因此，這對我們來說是一個巨大的機會，我們正在與周圍的許多客戶進行積極討論。因此，我們確實認為這種轉變將為我們的未來創造一個很好的機會。

Samik Chatterjee with JPMorgan.

Samik Chatterjee 與摩根大通。

Congrats on the strong guide. Maybe if I could just quickly hit on 2 of the product areas, [mostly] security, what sort of benefits are you seeing given your broad portfolio there in terms of customers looking to maybe some level of vendor consolidation just given your position as a more broader security portfolio supplier. And what sort of benefit does supply eases, maybe on the firewall side, should we expect greater revenue growth? And a similar question on Internet for the Future. Internet for the Future segment seems like a bit more supply constrained than other segments. But what sort of are you -- what are you seeing on the supply side there?

恭喜樓主強大。或許如果我能快速觸及 2 個產品領域，[主要是] 安全，考慮到您的廣泛產品組合，您看到了什麼樣的好處，就客戶而言，鑑於您的地位，可能希望某種程度的供應商整合更廣泛的安全產品組合供應商。供應減少有什麼好處，也許是在防火牆方面，我們應該期待更大的收入增長嗎？以及關於未來互聯網的類似問題。未來互聯網細分市場似乎比其他細分市場更受供應限制。但是你是什麼樣的 - 你在那裡的供應方面看到了什麼？

Okay. I'll take security and you can take the supply side (inaudible). So I think that -- look, all of our customers definitely want to consolidate their security infrastructure. They've got 40, 50 different vendors and trying to correlate these threats is very difficult and it's just -- you can't add enough people. So our teams right now are heads down working on some new capabilities that we're going to be bringing out over the next 12 to 18 months, and some of that is focused on exactly that, how do we consolidate and how do we create the ability to correlate threats in real time much more effectively. And so we think that you're probably going to start seeing the benefit of that 3, 4 quarters out. So the team's got work to do. We've hired a significant amount of outside talent. We've invested heavily in this space. So while we may see -- we may not see the growth that you want to see in the near term, but you will see this begin to accelerate in FY '24. And I think that we'll -- we're playing a long game here and really believe that there's a lot of consolidation that we can drive over the next few years. Scott?

好的。我負責安全，你可以負責供應方（聽不清）。所以我認為 - 看，我們所有的客戶肯定都希望鞏固他們的安全基礎設施。他們有 40、50 家不同的供應商，試圖將這些威脅關聯起來非常困難，而且只是——你不能增加足夠的人。因此，我們的團隊現在正專注於我們將在未來 12 到 18 個月內推出的一些新功能，其中一些專注於這一點，即我們如何整合以及如何創建更有效地實時關聯威脅的能力。因此，我們認為您可能會開始看到這 3、4 個季度的好處。所以團隊有工作要做。我們聘請了大量外部人才。我們在這個領域投入了大量資金。因此，雖然我們可能會看到 - 我們可能不會在短期內看到您希望看到的增長，但您會看到這種增長在 24 財年開始加速。而且我認為我們會 - 我們在這裡玩了一場漫長的比賽，並且真的相信我們可以在未來幾年內推動很多整合。斯科特？

Yes, on Internet for the Future. Samik, it is one of the spaces we've worked so hard and done so much across our entire product portfolio. So we've made great progress in many cases. I would say Internet for the Future is one of the spaces where we're still -- we've improved lead times there, but we're still not back to more normal lead times in that space.

是的，在未來的互聯網上。 Samik，這是我們在整個產品組合中努力工作並做了很多工作的空間之一。所以我們在很多情況下都取得了很大的進步。我想說未來的互聯網是我們仍然存在的領域之一——我們已經改善了那裡的交貨時間，但我們仍然沒有回到那個領域更正常的交貨時間。

What I'd also say though is we have already picked up orders just in the last several weeks from some of our peers that are also selling into that same space who couldn't meet demand. And those orders came to us instead. So while -- it's a space we continue to work on. And while we're seeing improvement, it's not where we want it to be, I feel like we're performing pretty well on the supply side and Internet for the Future.

不過，我還要說的是，我們已經在過去幾週內從我們的一些同行那裡獲得了訂單，這些同行也在向無法滿足需求的同一領域銷售產品。而這些訂單反而傳給了我們。因此，雖然 - 這是我們繼續努力的空間。雖然我們看到了改進，但這不是我們想要的地方，我覺得我們在供應方面和未來的互聯網方面表現得很好。

All right. That wraps up our Q&A. I'm going to turn it over to Chuck for some closing remarks.

好的。我們的問答到此結束。我將把它交給 Chuck 做一些結束語。

Well, first off, I just want to thank everybody for spending time with us today and also really thank our teams. They delivered on very strong results. I want to thank the supply chain and our engineering teams for quarter after quarter after quarter of hard work and redesigns, over 100 product redesigns, aggressive actions to get us to the position we're in today, the entire company for the progress we've made on our business transformation. And I'll just leave you with our feeling that our demand has remained stable. The business transformation is contributing significantly. Our backlog, all of those give us the visibility and confidence in the future. I think the relevance of our portfolio, given the most pressing needs of our customers, is as high as it's been in a very long time, and I'm super proud of what our teams have accomplished. So look forward to talking to you in the future, and thanks for joining us today.

好吧，首先，我只想感謝大家今天與我們共度時光，也非常感謝我們的團隊。他們取得了非常強勁的成果。我要感謝供應鍊和我們的工程團隊一個季度又一個季度的辛勤工作和重新設計，超過 100 次產品重新設計，積極的行動讓我們達到今天的位置，感謝整個公司的進步我們進行了業務轉型。我只是讓你覺得我們的需求將保持穩定。業務轉型貢獻巨大。我們的積壓，所有這些都給了我們未來的知名度和信心。考慮到客戶最緊迫的需求，我認為我們產品組合的相關性與很長一段時間以來一樣高，我為我們的團隊所取得的成就感到非常自豪。所以期待在未來與您交談，感謝您今天加入我們。

Thanks, Chuck. Cisco's next quarterly earnings conference call, which will reflect our fiscal 2023 third quarter results will be on Wednesday, May 17, 2023, at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time. This concludes today's call. If you have any further questions, feel free to reach out to the Cisco Investor Relations group, and we thank you very much for joining today's call.

謝謝，查克。思科下一次季度收益電話會議將於 2023 年 5 月 17 日星期三下午 1:30 召開，這將反映我們 2023 財年第三季度的業績。太平洋時間下午 4:30東部時間。今天的電話會議到此結束。如果您有任何其他問題，請隨時聯繫思科投資者關係小組，我們非常感謝您參加今天的電話會議。

Thank you for participating on today's conference call. If you would like to listen to the call in its entirety, you may call (866) 361-4941. For participants dialing from outside the U.S., please dial (203) 369-0189. This concludes today's call. You may disconnect at this time.

感謝您參加今天的電話會議。如果您想完整收聽電話，可以致電 (866) 361-4941。對於來自美國境外的參與者，請撥打 (203) 369-0189。今天的電話會議到此結束。此時您可以斷開連接。