戴爾 (DELL) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the fiscal year 2024 first quarter financial results conference call for Dell Technologies Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies.

下午好，歡迎參加戴爾科技公司 2024 財年第一季度財務業績電話會議。我想通知所有與會者，應戴爾科技公司的要求，本次電話會議正在錄音。

This broadcast is the copyrighted property of Dell Technologies Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. (Operator Instructions)

此廣播是 Dell Technologies Inc. 的版權財產。未經 Dell Technologies 事先書面許可，禁止全部或部分轉播此信息。 （操作員說明）

I'd like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin.

我想把電話轉給投資者關係主管 Rob Williams。威廉姆斯先生，您可以開始了。

Thanks, everyone, for joining us. With me today are Jeff Clarke, Chuck Whitten, Tom Sweet, Yvonne McGill and Tyler Johnson. Our earnings materials are available on our IR website, and I encourage you to review our materials and presentation, which includes additional content to complement our discussion this afternoon. Guidance will be covered on today's call.

謝謝大家加入我們。今天和我在一起的有傑夫·克拉克、查克·惠頓、湯姆·斯威特、伊馮娜·麥吉爾和泰勒·約翰遜。我們的收益材料可在我們的 IR 網站上找到，我鼓勵您查看我們的材料和演示文稿，其中包括補充我們今天下午討論的額外內容。今天的電話會議將涵蓋指導。

During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income, net income and diluted earnings per share. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and our press release. Growth percentages refer to year-over-year change unless otherwise specified.

在本次電話會議中，除非另有說明，否則所有提及的財務指標均指非 GAAP 財務指標，包括非 GAAP 毛利率、營業費用、營業收入、淨收入和稀釋後每股收益。在我們的網絡平台和新聞稿中可以找到這些措施與其最直接可比的 GAAP 措施的對賬。除非另有說明，否則增長百分比指的是同比變化。

Statements made during this call that relate to future results and events are forward-looking statements based on our current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties, which are discussed in our web deck and SEC filings. We assume no obligation to update our forward-looking statements.

本次電話會議中與未來結果和事件相關的聲明是基於我們當前預期的前瞻性聲明。由於存在許多風險和不確定性，實際結果和事件可能與預測的結果和事件存在重大差異，這些風險和不確定性在我們的網絡平台和 SEC 文件中進行了討論。我們沒有義務更新我們的前瞻性陳述。

Now I'll turn it over to Chuck.

現在我會把它交給查克。

Thanks, Rob. Our Q1 results demonstrate our strong execution and the power of our model in what remains an uncertain macroeconomic environment. At the summary level, we delivered revenue of $20.9 billion, operating income of $1.6 billion, diluted EPS of $1.31 and cash flow from operations of $1.8 billion. Consistent with our commentary in recent quarters, the demand environment remains challenged and customers are staying cautious and deliberate in their IT spending.

謝謝，羅布。我們的第一季度業績證明了我們在仍然不確定的宏觀經濟環境中的強大執行力和模型的力量。在匯總層面，我們實現了 209 億美元的收入、16 億美元的營業收入、1.31 美元的攤薄每股收益和 18 億美元的運營現金流。與我們最近幾個季度的評論一致，需求環境仍然充滿挑戰，客戶在 IT 支出方面保持謹慎和審慎。

We continue to see demand softness across our major lines of business, all regions, all customer sizes and most verticals. That said, we did see pockets of stronger demand performance worth noting. The CSG business performed sequentially better than our expectations at the time of our Q4 earnings call. And we did see some early signs of demand stabilization in commercial PCs in our small and medium business segments and across our transactional business. In storage, we saw continued demand growth in PowerStore, our marquee midrange offering, and in PowerFlex, our leading software-defined storage solution.

我們繼續看到我們主要業務線、所有地區、所有客戶規模和大多數垂直行業的需求疲軟。也就是說，我們確實看到了一些值得注意的強勁需求表現。 CSG 業務的連續表現好於我們在第四季度財報電話會議時的預期。我們確實在我們的中小型業務部門和整個交易業務中看到了商用 PC 需求穩定的一些早期跡象。在存儲方面，我們看到 PowerStore（我們的中端產品）和我們領先的軟件定義存儲解決方案 PowerFlex 的需求持續增長。

PowerStore has grown for 11 consecutive quarters since its release and PowerFlex has now grown for 7 consecutive quarters. And in servers, we saw an increase in demand for our AI optimized solutions. Interest has been particularly strong for our new purpose-built 16G server for artificial intelligence, the PowerEdge X9680, though we caution that we are early in the demand cycle for AI infrastructure and it will take time to translate to the P&L. In what was a challenging demand backdrop, we executed extremely well and stayed focused on what we could control. We maintained pricing discipline even as competitors continue to reduce excess channel inventory. Our average selling prices increased, and we delivered strong sequential and year-over-year gross margin performance given lower input costs.

PowerStore 自發布以來已連續 11 個季度增長，而 PowerFlex 現已連續 7 個季度增長。在服務器方面，我們看到對 AI 優化解決方案的需求有所增加。人們對我們專門為人工智能打造的新型 16G 服務器 PowerEdge X9680 特別感興趣，不過我們警告說，我們正處於人工智能基礎設施需求週期的早期，需要時間才能轉化為損益表。在充滿挑戰的需求背景下，我們執行得非常好，並始終專注於我們可以控制的事情。即使競爭對手繼續減少過剩的渠道庫存，我們仍保持定價紀律。我們的平均售價有所上漲，並且由於投入成本較低，我們實現了強勁的環比和同比毛利率表現。

We continue to maintain strong cost controls, reducing operating expenses by 6%. Since Q1 of last year, we have reduced operating expense by $240 million, and we'll continue to focus on prudent cost management as the year progresses. Our supply chain performed well. We reduced inventory by approximately $800 million in Q1 and by $2.3 billion over the last year, and our lead times and backlog have normalized post pandemic and ahead of competitors. And we are clearly focused on relative performance. We again gained share in calendar Q1 in commercial PCs, excluding Chrome, the most profitable segment of the market and our focus. And we expect to gain share in Q1 in storage when IDC results come out later this month. Though we anticipate some fluctuations in share performance as the year progresses, given the timing of industry backlog reduction, we remain confident in our ability to remain a structural share gainer over the long term.

我們繼續保持強有力的成本控制，將運營費用減少了 6%。自去年第一季度以來，我們已經減少了 2.4 億美元的運營費用，隨著時間的推移，我們將繼續專注於審慎的成本管理。我們的供應鍊錶現良好。我們在第一季度減少了大約 8 億美元的庫存，比去年減少了 23 億美元，我們的交貨時間和積壓訂單在大流行後已經正常化並領先於競爭對手。我們顯然專注於相對錶現。我們在第一季度的商用 PC 中再次獲得了份額，不包括 Chrome，市場上最賺錢的部分和我們的重點。當 IDC 本月晚些時候公佈結果時，我們預計將在第一季度獲得存儲份額。儘管我們預計隨著時間的推移股票表現會出現一些波動，但考慮到行業積壓訂單減少的時機，我們仍然相信我們有能力在長期內保持結構性股票增長。

We also pressed forward on a substantial innovation agenda. Last week, we hosted our annual Dell Technologies World event with more than 10,000 attendees, and made several big announcements as we advance our strategies in multi-cloud, edge, AI, security, hybrid work and as-a-service solutions. In multi-cloud, we introduced 3 APEX cloud platforms developed with Microsoft, Red Hat and VMware to seamlessly extend cloud platform operating environments to on-premise environments. We also announced new APEX cloud storage for public cloud offerings, bringing Dell's industry-leading block and file enterprise storage capabilities to Azure and AWS environments and delivering on the promise of Project Alpine announced last year.

我們還推進了一項實質性的創新議程。上週，我們舉辦了一年一度的 Dell Technologies World 活動，有超過 10,000 名與會者參加，並在我們推進多雲、邊緣、人工智能、安全、混合工作和即服務解決方案方面的戰略時發布了幾項重大公告。在多雲方面，我們引入了與微軟、紅帽和VMware共同開發的3個APEX雲平台，將雲平台運行環境無縫擴展到本地環境。我們還宣布了用於公共雲產品的新 APEX 雲存儲，將戴爾行業領先的塊和文件企業存儲功能引入 Azure 和 AWS 環境，並兌現了去年宣布的 Project Alpine 的承諾。

We delivered on the vision of Project Frontier, introducing Dell NativeEdge, our software platform that makes it easier for customers to manage, simplify and secure their entire edge estate with a single solution. We announced Project Helix, our collaboration with NVIDIA that enables customers to quickly deploy generative AI on-premises at scale using their own proprietary data safely and securely. Under APEX, we met our commitment to extend as-a-service capabilities across our full portfolio with the addition of compute and PC as a Service. And finally, we announced Project Ford Zero, a collaboration with over 30 partners to develop a U.S. Department of Defense validated solution that will ease the adoption of Zero Trust security in private clouds.

我們實現了 Project Frontier 的願景，推出了我們的軟件平台 Dell NativeEdge，使客戶能夠通過單一解決方案更輕鬆地管理、簡化和保護他們的整個邊緣資產。我們宣布了 Project Helix，這是我們與 NVIDIA 的合作項目，它使客戶能夠使用自己的專有數據安全可靠地在本地大規模快速部署生成式 AI。在 APEX 下，我們通過添加計算和 PC 即服務，實現了在我們的整個產品組合中擴展即服務功能的承諾。最後，我們宣布了 Project Ford Zero，這是一項與 30 多個合作夥伴的合作，旨在開發經過美國國防部驗證的解決方案，該解決方案將簡化私有云中零信任安全的採用。

Looking ahead, we expect the cautious IT spending environment to continue in Q2. We expect CSG to perform closer to historical sequentials, given the pockets of commercial PC demand we saw in Q1 and the duration of the PC down cycle relative to prior cycles. We expect Q2 ISG spending to remain muted as customers scrutinize and prioritize spend, though customers continue to move forward with digital investments. Sales cycles continue to lengthen given the macroeconomic uncertainty. And as the industry levels continue to normalize, we expect an increasingly competitive environment relative to Q1.

展望未來，我們預計謹慎的 IT 支出環境將在第二季度繼續。鑑於我們在第一季度看到的商用 PC 需求量以及 PC 下行週期相對於之前週期的持續時間，我們預計 CSG 的表現將更接近歷史順序。我們預計第二季度 ISG 支出將保持低迷，因為客戶會仔細審查並確定支出的優先順序，儘管客戶繼續推進數字投資。鑑於宏觀經濟的不確定性，銷售週期繼續延長。隨著行業水平繼續正常化，我們預計相對於第一季度的競爭環境將越來越激烈。

Ultimately, we have confidence in the long-term health of our core markets and the advantages of our business model. Data continues to increase exponentially in both quantity and value, and customers see us as a trusted partner, ready to help them navigate the complexities of multi-cloud, edge, AI, data management and hybrid work. We remain the industry leader in all of our key solution categories, are central to our customers' technology agendas and have a strong track record of delivering on our commitments in any environment. So short and long term, we'll stick to the playbook that has served us well across multiple cycles, focusing on customers, driving differentiated relative performance, delivering against our innovation agenda, prudently managing costs, maintaining pricing discipline and investing for the long term.

最終，我們對核心市場的長期健康發展和我們商業模式的優勢充滿信心。數據在數量和價值上繼續呈指數增長，客戶將我們視為值得信賴的合作夥伴，隨時準備幫助他們駕馭多雲、邊緣、人工智能、數據管理和混合工作的複雜性。我們仍然是所有關鍵解決方案類別的行業領導者，是我們客戶技術議程的核心，並且在任何環境下都有兌現我們承諾的良好記錄。因此，從短期和長期來看，我們將堅持在多個週期中為我們提供良好服務的劇本，專注於客戶，推動差異化的相對績效，根據我們的創新議程交付，審慎地管理成本，維持定價紀律和長期投資.

Now over to Tom for the detailed Q1 financials.

現在請湯姆詳細介紹第一季度的財務狀況。

Thanks, Chuck. We're pleased with our Q1 execution given the current environment. We delivered revenue of $20.9 billion, down 20% with strong gross margins and operating cost management. Currency remained a headwind and impacted revenue by approximately 290 basis points. Gross margin was $5.2 billion and 24.7% of revenue. Gross margin rate was up 2 points, driven by lower input costs and pricing discipline. We did see increased pricing pressure in Q1, but we're selective on deals depending upon the customer and the opportunity. Expect us to continue to focus on the more profitable segments of the market and remain disciplined on pricing.

謝謝，查克。鑑於當前環境，我們對第一季度的執行情況感到滿意。我們實現了 209 億美元的收入，下降了 20%，毛利率和運營成本管理強勁。貨幣仍然是一個不利因素，對收入的影響約為 290 個基點。毛利率為 52 億美元，佔收入的 24.7%。毛利率上升了 2 個百分點，這主要得益於較低的投入成本和定價紀律。我們確實看到第一季度定價壓力增加，但我們根據客戶和機會選擇交易。期望我們繼續關注市場中利潤更高的部分，並在定價方面保持自律。

Operating expense was $3.6 billion, down 6%, driven by lower marketing and headcount-related costs and 17.1% of revenue given scaling. We will continue to actively manage our overall spend as we move through the year. Operating income was $1.6 billion and 7.6% of revenue due to a decline in revenue, partially offset by a higher gross margin rate and lower operating expense. Our quarterly tax rate was 22.7%. Net income was $963 million, primarily driven by lower operating income and, to a lesser extent, a higher tax rate. Diluted earnings per share was $1.31, down 29% due to lower net income, partially offset by a lower share count.

營業費用為 36 億美元，下降 6%，這是由於營銷和人員相關成本降低以及規模擴大後收入佔收入的 17.1%。在這一年中，我們將繼續積極管理我們的整體支出。由於收入下降，營業收入為 16 億美元，佔收入的 7.6%，部分被較高的毛利率和較低的營業費用所抵消。我們的季度稅率為 22.7%。淨收入為 9.63 億美元，主要是由於較低的營業收入以及較小程度上較高的稅率。稀釋後每股收益為 1.31 美元，下降 29%，原因是淨收入下降，部分被較低的股票數量所抵消。

Our recurring revenue in the quarter was approximately $5.6 billion, up 6%, and our remaining performance obligations, or RPO, was approximately $39 billion, which was down 7% due to a reduction in backlog, partially offset by an increase in deferred revenue. Deferred revenue was up primarily due to increases in services and software maintenance agreements. ISG revenue was $7.6 billion, down 18%, driven by soft demand in servers and storage. We delivered storage revenue of $3.8 billion with demand growth in PowerStore and PowerFlex. While Q1 is seasonally our softest storage quarter, we did see customer decisions extend out and some deal sizes reduced.

本季度我們的經常性收入約為 56 億美元，增長 6%，而我們的剩餘履約義務或 RPO 約為 390 億美元，由於積壓訂單減少而下降 7%，部分被遞延收入的增加所抵消。遞延收入增加主要是由於服務和軟件維護協議的增加。受服務器和存儲需求疲軟的推動，ISG 收入為 76 億美元，下降 18%。隨著 PowerStore 和 PowerFlex 需求的增長，我們實現了 38 億美元的存儲收入。雖然第一季度是我們最疲軟的季節性存儲季度，但我們確實看到客戶決策延長，一些交易規模減少。

Servers and networking revenue was $3.8 billion. We saw server ASPs continue to expand, and our mix of high-value workload servers increased as we continue to sell deeper into the customers' digital agenda. ISG operating income was $740 million, or 9.7% of revenue, down 2 points, primarily due to a decline in revenue, partially offset by a better gross margin rate.

服務器和網絡收入為 38 億美元。我們看到服務器 ASP 繼續擴大，隨著我們繼續深入客戶的數字議程銷售，我們的高價值工作負載服務器組合也有所增加。 ISG 營業收入為 7.4 億美元，佔收入的 9.7%，下降 2 個百分點，這主要是由於收入下降，部分被更好的毛利率所抵消。

Turning to CSG. The PC market has continued to slow since June of last year, and the market declined sharply in calendar Q4 and again in calendar Q1, down 29% in units. Our fiscal Q1 CSG revenue was $12 billion, down 23%, primarily driven by a decline in units, partially offset by higher average selling prices in commercial and consumer. In a continuation of trends we've seen in recent quarters, commercial fared better than consumer.

轉向南玻。個人電腦市場自去年 6 月以來持續放緩，市場在第四季度和第一季度再次大幅下滑，出貨量下降 29%。我們第一財季的 CSG 收入為 120 億美元，下降 23%，這主要是由於銷量下降，部分被商業和消費者平均售價上漲所抵消。在我們最近幾個季度看到的趨勢的延續中，商業表現優於消費者。

Commercial revenue and consumer revenue were $9.9 billion and $2.1 billion, respectively. CSG profitability was strong in Q1, with operating income of $892 million or 7.4% of revenue, up 20 basis points, driven by a higher gross margin rate and lower operating expenses. We remain focused on commercial and the high end of consumer relative performance in executing our direct attach motion for services, software, peripherals and financing.

商業收入和消費者收入分別為 99 億美元和 21 億美元。 CSG 第一季度的盈利能力強勁，營業收入為 8.92 億美元，佔收入的 7.4%，增長 20 個基點，這得益於更高的毛利率和更低的運營費用。在執行我們針對服務、軟件、外圍設備和融資的直接附加動議時，我們仍然專注於商業和高端消費者的相對錶現。

Turning to DFS and APEX. Customer interest remains high in consumption and financing models that provide both payment flexibility and predictability. Our Q1 Dell Financial Services originations were $1.8 billion. DFS ending managed assets reached $14.3 billion, up 9%, while the overall DFS portfolio quality remains strong with credit losses near historically low levels. During the quarter, we continued to see APEX momentum, including an increase in the number of APEX customers that have subscribed to our as-a-service solutions.

轉向 DFS 和 APEX。客戶對提供支付靈活性和可預測性的消費和融資模式的興趣仍然很高。我們第一季度的戴爾金融服務發起金額為 18 億美元。 DFS 期末管理資產達到 143 億美元，增長 9%，而整體 DFS 投資組合質量依然強勁，信貸損失接近歷史低位。本季度，我們繼續看到 APEX 的發展勢頭，包括訂閱我們即服務解決方案的 APEX 客戶數量有所增加。

Turning to our cash flow and balance sheet. Our cash flow from operations was seasonally very strong at $1.8 billion, aided by our focus on working capital efficiency. As Chuck mentioned, we reduced inventory by approximately $800 million in Q1 and by $2.3 billion over the last year through disciplined execution and improvement in our supply chain. And our receivables balance benefited from strong collections this quarter. Our balance sheet remained strong, and we ended the quarter with $9.2 billion in cash and investments, down $1 billion sequentially due to a $1.1 billion of core debt paydown and $527 million of capital returns, offset by free cash flow generation. Our core leverage ratio improved sequentially to 1.7x as we prepaid our $1 billion note due in June.

轉向我們的現金流量和資產負債表。得益於我們對營運資本效率的關注，我們的運營現金流季節性非常強勁，達到 18 億美元。正如 Chuck 提到的，我們通過嚴格執行和改進供應鏈，在第一季度減少了大約 8 億美元的庫存，比去年減少了 23 億美元。我們的應收賬款餘額受益於本季度的強勁收款。我們的資產負債表依然強勁，本季度末我們擁有 92 億美元的現金和投資，環比減少 10 億美元，原因是 11 億美元的核心債務償還和 5.27 億美元的資本回報被自由現金流產生所抵消。由於我們預付了 6 月份到期的 10 億美元票據，我們的核心槓桿率環比提高至 1.7 倍。

Turning to capital allocation. We will continue our balanced approach, repurchasing shares programmatically to manage dilution while maintaining the flexibility to be opportunistic. In Q1, we repurchased 6.1 million shares of stock for $251 million and paid $276 million in dividends.

轉向資本配置。我們將繼續我們的平衡方法，以編程方式回購股票以管理稀釋，同時保持機會主義的靈活性。第一季度，我們以 2.51 億美元的價格回購了 610 萬股股票，並支付了 2.76 億美元的股息。

Now I'll turn it over to Yvonne to cover our guidance.

現在我將把它交給 Yvonne 來介紹我們的指導。

Thanks, Tom. Turning to guidance. we expect Q2 revenue to be in the range of $20.2 billion and $21.2 billion or between down 3% and up 1% sequentially, with a midpoint of $20.7 billion. Currency continues to be a headwind, and we are expecting a roughly 200 basis point impact to Q2 revenue. We expect CSG revenue to be roughly flat sequentially and ISG down in the low single digits sequentially. With inventories normalizing across the supply chain, we expect a more competitive pricing environment. Given Q1 profitability, combined with more muted sequential component cost deflation, we expect gross margin rates to be down roughly 50 basis points sequentially. We expect our Q2 diluted share count to be between 733 million and 738 million shares and our diluted EPS to be $1.10, plus or minus $0.10.

謝謝，湯姆。轉向指導。我們預計第二季度收入將在 202 億美元至 212 億美元之間，即環比下降 3% 至上升 1% 之間，中點為 207 億美元。貨幣仍然是不利因素，我們預計第二季度收入將受到大約 200 個基點的影響。我們預計 CSG 收入將大致持平，而 ISG 收入將連續下降至較低的個位數。隨著整個供應鏈的庫存正常化，我們預計會有一個更具競爭力的定價環境。鑑於第一季度的盈利能力，加上更溫和的連續組件成本通縮，我們預計毛利率將連續下降約 50 個基點。我們預計我們第二季度的攤薄後股數將在 7.33 億至 7.38 億股之間，攤薄後每股收益為 1.10 美元，上下浮動 0.10 美元。

For the full year, we're maintaining our FY '24 revenue expectations, down between 12% and 18% and down 15% at the midpoint. Given Q2 guidance, this implies a return to sequential growth in the second half of the year. Interest and other will be up approximately $100 million as we fund DFS originations in a higher interest rate environment. For our tax rate, you should assume 24% plus or minus 100 basis points. We are increasing our expectations for diluted earnings per share to $5.50, plus or minus $0.25.

對於全年，我們維持 24 財年的收入預期，下降 12% 至 18%，中點下降 15%。鑑於第二季度的指引，這意味著下半年將恢復環比增長。由於我們在更高利率環境中為 DFS 發起提供資金，利息和其他費用將增加約 1 億美元。對於我們的稅率，您應該假設 24% 加減 100 個基點。我們將稀釋後每股收益的預期上調至 5.50 美元，上下浮動 0.25 美元。

In closing, expect us to continue to be disciplined in how we manage the business in the current macro environment, focusing on what we can control and delivering for our customers. While there is near-term uncertainty, we have strong conviction in the growth of our TAM over the long term. We are committed to delivering our value creation framework with revenue CAGR of 3% to 4%, a diluted EPS CAGR of 6% or higher and the net income to adjusted free cash flow conversion of 100% or higher over time. We have returned $5 billion to shareholders over the last 6 quarters through share repurchases and dividends, approximately 96% of our adjusted free cash flow over that time period, well in excess of our 40% to 60% return target.

最後，希望我們在當前的宏觀環境中繼續遵守我們如何管理業務的紀律，專注於我們可以控制和為客戶提供的服務。儘管短期內存在不確定性，但我們堅信 TAM 的長期增長。我們致力於提供我們的價值創造框架，收入複合年增長率為 3% 至 4%，攤薄後每股收益複合年增長率為 6% 或更高，並且隨著時間的推移，調整後的自由現金流轉換為 100% 或更高的淨收入。過去 6 個季度，我們通過股票回購和派息向股東返還了 50 億美元，約占同期調整後自由現金流的 96%，遠遠超過我們 40% 至 60% 的回報率目標。

We value our relationships with our shareholders, and we are actively listening to your feedback. We increased our annual dividend by 12% last quarter, and we recently put in place new governance enhancements to our Board and oversight structure. Ellen Kullman, has been elected by our Board as Lead Independent Director, with robust oversight responsibilities. And our Board committee members are independent directors. Also, with recent S&P Global eligibility rule changes, we are encouraged about the potential for future inclusion in the S&P 500 Index.

我們重視與股東的關係，我們正在積極聽取您的反饋。上個季度，我們將年度股息提高了 12%，最近我們對董事會和監督結構進行了新的治理改進。艾倫·庫爾曼 (Ellen Kullman) 已被董事會選為首席獨立董事，負有強有力的監督責任。我們的董事會委員會成員是獨立董事。此外，隨著最近標準普爾全球資格規則的變化，我們對未來被納入標準普爾 500 指數的潛力感到鼓舞。

Now I'll turn it back to Rob to begin Q&A.

現在我將把它轉回 Rob 開始問答。

Thanks, Yvonne. (Operator Instructions) Let's go to the first question.

謝謝，伊馮娜。 （操作員說明）讓我們回到第一個問題。

We'll take our first question from Erik Woodring with Morgan Stanley.

我們將從 Morgan Stanley 的 Erik Woodring 那裡回答我們的第一個問題。

Tom, maybe this question is for you, or Yvonne, and that is you just beat the first quarter by $0.50. You only raised the full year guide by $0.20. And then on the revenue side, we're seeing some moving pieces that just look a little bit different than what you expected last quarter in terms of, last quarter, you talked about sequential revenue growth through the year. Now you're talking about a little bit of a weaker 2Q. And so can you just help us understand some of the moving pieces why seasonality might look a bit different today than what you thought 90 days ago and why the first quarter beat doesn't flow through fully through the year?

湯姆，也許這個問題是給你的，或者是給伊馮娜的，那就是你剛剛比第一季度多了 0.50 美元。您僅將全年指南提高了 0.20 美元。然後在收入方面，我們看到一些移動的部分看起來與上個季度的預期略有不同，上個季度，你談到了全年的連續收入增長。現在你說的是有點弱的 2Q。那麼，您能否幫助我們理解一些動人的部分，為什麼今天的季節性可能看起來與您 90 天前的想法有些不同，以及為什麼第一季度節拍沒有貫穿全年？

Sure, Erik. Thanks. I'll start off here. So we did raise EPS given where we landed in Q1. In Q1, you really did see the strength of our model. So we were happy with that performance. But with the channel inventories and backlog clearing across the industry as well as access to lower cost components, we're expecting a more competitive environment going forward in the second quarter and beyond. The other areas we're looking at around component costs expecting to be deflationary in the second quarter, and you'll see that resulting in some gross margin dilution going forward.

當然，埃里克。謝謝。我將從這裡開始。因此，鑑於我們在第一季度的登陸情況，我們確實提高了每股收益。在第一季度，您確實看到了我們模型的優勢。所以我們對那個表現很滿意。但隨著整個行業的渠道庫存和積壓清算以及獲得成本更低的組件，我們預計第二季度及以後的競爭環境將更加激烈。我們正在關注的其他領域圍繞組件成本預計將在第二季度出現通貨緊縮，你會看到這會導致未來的毛利率有所稀釋。

All of these areas were contemplated in the guide we gave. And I want to reiterate it's still early in the year, right? It's the first -- we just finished the first quarter. And so we want to make sure that we maintain balanced approach there and with our priorities around our relative performance, balancing growth and profitability and continuing prudent cost control.

我們提供的指南中考慮了所有這些領域。我想重申一下，現在還為時過早，對吧？這是第一個——我們剛剛完成了第一季度。因此，我們希望確保我們在那裡保持平衡的方法，並優先考慮我們的相對績效、平衡增長和盈利能力以及持續審慎的成本控制。

And our next question will come from Wamsi Mohan with Bank of America.

我們的下一個問題將來自美國銀行的 Wamsi Mohan。

I was wondering if you could talk about how you're thinking about pricing and share and maybe also reference how you're looking at elasticity of demand as a response to pricing. I think, Yvonne, you just said it's definitely a more competitive environment. So where is Dell going to be kind of flexing more in its ability to drive more share with price? And in what areas do you think that won't be quite as much where there might not be as much elasticity of demand?

我想知道你是否可以談談你是如何考慮定價和份額的，也許還可以參考你如何看待需求彈性作為對定價的反應。我想，Yvonne，你剛才說這絕對是一個競爭更加激烈的環境。那麼，戴爾將在哪些方面發揮更大的作用，以通過價格推動更多市場份額呢？您認為在哪些領域需求彈性可能不會那麼大？

Wamsi, it's Chuck. Thanks for the question. Look, I don't think our posture has changed over multiple quarters on that topic. We maintain a balanced approach to profitability. And we are finding in the current environment, whether it's the CSG business or end servers or storage, there's just not a lot of price elasticity out there to use. If there's a place in the business where we see elasticity, it's in the consumer business, which is a very small portion of what we focus on. So look, the pricing environment, as we've seen it through Q1 has been more challenged.

瓦姆西，是查克。謝謝你的問題。看，我不認為我們在這個話題上的立場在多個季度內發生了變化。我們保持平衡的盈利方式。我們發現在當前環境下，無論是 CSG 業務、終端服務器還是存儲，都沒有太多的價格彈性可供使用。如果我們在業務中看到彈性的地方，那就是消費者業務，這只是我們關注的一小部分。所以看，定價環境，正如我們在第一季度看到的那樣，面臨著更大的挑戰。

We're certainly seeing more aggression out there that always presents to us deals that we could choose to take at a margin losing proposition and we tend to steer clear of those. If we don't see a path to margin recovery, we tend to not play. So even in the falling deflationary environment, that's the posture we're taking. I would say across the business generally, we've seen TRUs remain stable, and that's both a function of, I think, that pricing discipline as well as the power of our direct model. Our attach in our CSG business as well as in our ISG business was good in Q1, and that helped offset that competitive pricing pressure that we saw across the portfolio.

我們肯定會看到更多的侵略性，總是向我們展示我們可以選擇在利潤損失的情況下接受的交易，我們傾向於避開這些交易。如果我們看不到利潤率恢復的途徑，我們往往不會參與。因此，即使在通貨緊縮的環境中，這也是我們所採取的姿態。我會說整個企業，我們已經看到 TRU 保持穩定，我認為這既是定價紀律的功能，也是我們直接模型的力量。我們對 CSG 業務和 ISG 業務的重視在第一季度表現良好，這有助於抵消我們在整個投資組合中看到的競爭性定價壓力。

Maybe one other quick comment to build on what Chuck said, Wamsi, is look, we're committed to long-term share gain. That's part of the model that Chuck referred to in our prepared remarks. I think we've also been consistent that not all share gain in all categories is equivalent. So our focus continues to be in what we think are the advantaged opportunities for us, commercial PCs workstations, high-end consumer PCs and gaming and the opportunities that exist in our broad storage portfolio and server business. That's where we'll focus on share gains. We're a long-term share acquirer or gainer, and we'll continue to do so.

也許另一個基於 Chuck 所說的快速評論，Wamsi，看，我們致力於長期的份額增長。這是查克在我們準備好的發言中提到的模型的一部分。我認為我們也一直認為並非所有類別的所有份額收益都是相等的。因此，我們的重點仍然放在我們認為對我們有利的機會上，商用 PC 工作站、高端消費 PC 和遊戲以及我們廣泛的存儲產品組合和服務器業務中存在的機會。這就是我們將關注股票收益的地方。我們是一個長期的股票收購者或獲得者，我們將繼續這樣做。

And our next question will come from Amit Daryani with Evercore.

我們的下一個問題將來自 Evercore 的 Amit Daryani。

I guess you pushed a fairly impressive performance in the free cash flow side this quarter. So I was hoping you could talk about, a, just free cash flow generation for the company broadly, how do you really think about it for the year, and is there any way to think about what normalized cash cycle they should look like for Dell. That would be really helpful.

我猜你本季度在自由現金流方面取得了相當令人印象深刻的表現。所以我希望你能談談，a，廣泛地為公司創造自由現金流，你如何真正考慮這一年，有沒有辦法考慮戴爾應該是什麼樣的正常現金周期.那真的很有幫助。

And then b, I think, Tom, you talked about in the press release about how shareholder return is in excess of your target. Does that mean we should start to think about buybacks consistently outpacing your prior framework? Or anything on the buyback front would be helpful.

然後 b，我認為，湯姆，你在新聞稿中談到股東回報如何超過你的目標。這是否意味著我們應該開始考慮回購持續超過您之前的框架？或者回購方面的任何事情都會有所幫助。

Amit, it's Tom. Let me start with your second part of that question, and then I'll pivot over to Tyler, so we can chat about how we think about free cash flow in context of the financial model. Look, I mean, I think the shareholder return over the last 6 quarters has been -- I think we're right around $5 billion of overall capital return. And I think that's roughly about 96% of our free cash flow generation over that period of time. Obviously, part of that was the catch-up from the dilution that came out of the VMware spin, but we've been very much focused on how do we return and create shareholder value over that period of time.

阿米特，是湯姆。讓我從你的問題的第二部分開始，然後我將轉向泰勒，這樣我們就可以談談我們如何在財務模型的背景下考慮自由現金流。看，我的意思是，我認為過去 6 個季度的股東回報是——我認為我們的總資本回報約為 50 億美元。我認為這大約是我們在那段時間產生的自由現金流量的 96%。顯然，部分原因是 VMware 分拆帶來的稀釋帶來的追趕，但我們一直非常關注在那段時間裡如何回報和創造股東價值。

I also think you've seen -- you've heard from Michael over the last month or 2 or last quarter or so around the fact that he believes that there is incremental capability and capacity around capital return to shareholders, and that's something we're clearly evaluating. As we work our way through that, we'll continue to be opportunistic in how we think about share buyback relative to other uses of capital, we do have some debt that we're continuing that will -- we're focused on paying down this year in addition to the $1 billion that we just highlighted in the call. But look, I think from our commitment to our investor base is that we'll continue to drive shareholder value and capital return through, I think, an appropriate level of capital allocation.

我還認為你已經看到 - 你在過去一個月或兩個月或上個季度左右從邁克爾那裡聽說過這樣一個事實，即他認為在資本回報股東方面存在增量能力和能力，這就是我們'重新評估清楚。在我們努力解決這個問題的過程中，我們將繼續以機會主義的方式思考相對於其他資本用途的股票回購，我們確實有一些債務，我們將繼續這樣做——我們專注於償還今年除了我們剛剛在電話會議中強調的 10 億美元之外。但是，我認為從我們對投資者基礎的承諾來看，我們將繼續通過適當水平的資本配置來推動股東價值和資本回報。

And then, Tyler, why don't we turn it over to you and talk about free cash flow for a second?

然後，泰勒，我們為什麼不把它交給你，談談自由現金流呢？

Yes. Let me try to frame it, maybe talking a little bit about what happened last year and then what we're seeing now, right? So last year, we obviously had a headwind from a working capital perspective. And we -- as you know, we've got a negative cash conversion cycle, and that can be a big driver of what our cash does. And we talked about last quarter how we didn't expect working capital to be a headwind this year. And what you saw in Q1 was obviously a pretty big benefit coming from both inventory and on the receivables side.

是的。讓我試著構想一下，也許先談談去年發生的事情，然後再談談我們現在看到的，對吧？所以去年，從營運資金的角度來看，我們顯然遇到了逆風。而且我們 - 如您所知，我們有一個負現金轉換週期，這可能是我們現金運作的重要驅動力。我們在上個季度談到了我們如何預計今年的營運資金不會成為逆風。你在第一季度看到的顯然是來自庫存和應收賬款方面的相當大的好處。

As I think about going forward and just recognizing, as a reminder, we don't give guidance, I would think about it this way. I think we still have opportunities in working capital, but it's not going to improve in a linear fashion. So I think that this is going to happen over time. We remain very focused on it. And as you think about what we've talked about in the second half of the year, returning to sequential growth, that would help throw off good cash. So look, I feel good about the year and where we are. I think that we'll migrate back towards that [1x]. And I think to your question about what's normalized, I think what I would pay attention to is working capital. That has the biggest impact. And as you see us improve there, you'll see cash improve.

當我考慮繼續前進並認識到，作為提醒，我們不提供指導，我會這樣考慮。我認為我們在營運資金方面仍有機會，但不會以線性方式改善。所以我認為這會隨著時間的推移而發生。我們仍然非常關注它。當你考慮我們在今年下半年談論的內容時，恢復連續增長，這將有助於擺脫大量現金。所以看，我對這一年和我們所處的位置感覺良好。我認為我們會回到 [1x]。我認為你關於什麼是標準化的問題，我想我會關注的是營運資金。這影響最大。當你看到我們在那裡有所改善時，你會看到現金有所改善。

And moving on to Toni Sacconaghi with Bernstein.

並與伯恩斯坦一起轉向 Toni Sacconaghi。

I'd just like to go back to the Q2 guidance. I think historically, you're up about 6% to 8% in revenues on a sequential basis. You're guiding for flat to slightly down. And I think you also commented, or Chuck did, in the prepared remarks that you expected kind of normal seasonal growth in PCs. So I wanted to understand, I'm still struggling to draw the bridge between normal seasonality and what you're guiding to. Is this all price? Or do you think the markets are weakening incrementally so that they're below normal seasonality? Or is there something about what happened with backlog this quarter? I was sort of under the impression you were going to build more backlog than normal this quarter, which would point to above seasonal growth. Maybe you can just help square the circle on how we should think about your guidance relative to seasonality and what the demand outlet out there is.

我只想回到第二季度的指導。我認為從歷史上看，你的收入連續增長了 6% 到 8%。你正在引導持平到略微下降。而且我認為您在準備好的評論中也評論過，或者 Chuck 評論過，您預計 PC 會出現正常的季節性增長。所以我想明白，我仍在努力在正常的季節性和你所指導的之間架起一座橋樑。這是全價嗎？還是您認為市場正在逐步走弱以致低於正常的季節性？還是本季度積壓發生了什麼？我的印像是，本季度您將建立比正常情況更多的積壓訂單，這表明高於季節性增長。也許你可以幫助解決我們應該如何考慮你相對於季節性的指導以及那裡的需求渠道。

Yes. Thanks, Toni. Let me start on the CSG portion of the question, and then let me hand over to Yvonne on unpacking the guidance. But look, I would categorize the client business as still recovering. So I'd start with the consumer business, obviously, it remains under pressure. The commercial business showed some pockets of improvement. Our small and medium business performance improved as we called out, and it outperformed large enterprises. That is typically a good leading indicator for us. And our transactional business, which is inclusive of our small and medium business segment, but also reflects the run rate enterprise demand that is out there, also showed some signs of stability as we move through the quarter.

是的。謝謝，托尼。讓我從問題的 CSG 部分開始，然後讓我交給 Yvonne 來解開指南。但是，我會將客戶業務歸類為仍在恢復中。所以我會從消費者業務開始，顯然，它仍然面臨壓力。商業業務顯示出一些改進。我們的中小企業業績呼聲提高，跑贏大企業。這對我們來說通常是一個很好的領先指標。我們的交易業務，包括我們的中小型業務部門，也反映了現有的企業需求，在我們整個季度中也顯示出一些穩定的跡象。

But what has not fully recovered yet is the large bids from the largest customers. And that's ultimately the demand that we're going to need to see for a full-scale recovery in the PC market. Enterprises just continue to be cautious about their spending. So that's what's factored into our Q2 guidance. We expect CSG revenue to be roughly flat sequentially. That reflects a recovering but not fully recovered market. I think if you look at it, it's probably closer to the 3-year average sequential but not yet back to pre-pandemic levels. Yvonne?

但尚未完全恢復的是來自最大客戶的大額出價。這就是我們最終需要看到的 PC 市場全面復甦的需求。企業只是繼續對其支出保持謹慎。這就是我們第二季度指南的考慮因素。我們預計 CSG 收入將大致持平。這反映了一個正在復蘇但尚未完全復甦的市場。我認為，如果你看一下，它可能更接近連續 3 年的平均水平，但尚未回到大流行前的水平。伊馮？

Thanks, Chuck. Toni, I'd also add, I think our 3-year sequential is running at about 4% from Q1 to Q2. So that will be -- that's part of that. And what we flashed obviously is lower than that, sequential at the midpoint, down 1%, with CSG being flat and ISG being down [4]. So I think that we're starting to see that. We also had -- as we disclosed today a better-than-expected first quarter. And so that's having a little bit of an impact in the CSG space also. As I look through the rest of the guide, I think, again, we've talked about revenue, but other areas, we're expecting OpEx to be down sequentially, really in line with revenue at the midpoint. And we're expecting interest and other to be up about $60 million sequentially. So those are some of the elements that we're evaluating as we look through the guidance.

謝謝，查克。托尼，我還要補充一點，我認為從第一季度到第二季度，我們的 3 年連續運行速度約為 4%。所以這將是 - 這是其中的一部分。而我們閃現的明顯低於該水平，在中點連續下跌 1%，CSG 持平，ISG 下跌 [4]。所以我認為我們開始看到這一點。正如我們今天披露的那樣，我們還有一個好於預期的第一季度。因此，這對 CSG 領域也產生了一些影響。當我瀏覽指南的其餘部分時，我認為，我們再次討論了收入，但在其他領域，我們預計 OpEx 將連續下降，真正與中點的收入保持一致。我們預計利息和其他費用將連續增加約 6000 萬美元。因此，這些是我們在查看指南時正在評估的一些要素。

Toni, it's Tom. Let me also just add, if you step back and think about the Q1 revenue of $20.9 billion, which obviously came in higher than what our guide was when we talked about this a few months ago, included in that was some backlog reduction. And yes, backlog in our minds, is in a normal range, and we think about that as a range, not a point estimate and our -- if you look at our lead times, they're generally in line, except for maybe 1 or 2 outliers. So there was -- between -- if you look at our RPO walk, you can see there's roughly a $400 million to $500 million backlog reduction in that Q1 revenue number. And then so you think from a normalized base of roughly 20.4, then you take a -- we're about a 2% sequential growth up -- or 1.5% to 2% sequential, up to get to the [20.7]. It's lower than the 4% normal seasonal. There's also a bit of pricing pressure in there from ASPs given some of the component cost declines. And so that's the mix that's in play right now as we think about that 20.7 midpoint guide.

托尼，是湯姆。讓我再補充一點，如果你退一步想想第一季度 209 億美元的收入，這顯然高於我們幾個月前談論這個問題時的指南，其中包括一些積壓的減少。是的，在我們看來，積壓在正常範圍內，我們認為這是一個範圍，而不是一個點估計，而且我們 - 如果你看看我們的交貨時間，它們通常是一致的，除了可能 1或 2 個異常值。因此，如果你看一下我們的 RPO 走動，你會看到 - 之間 - 第一季度的收入數字大約減少了 4 億至 5 億美元的積壓。然後你從大約 20.4 的標準化基數開始思考，然後你採取 - 我們大約連續增長 2% - 或者連續增長 1.5% 到 2%，直到達到 [20.7]。它低於 4% 的正常季節性。鑑於部分組件成本下降，平均售價也帶來了一些定價壓力。因此，當我們考慮 20.7 中點指南時，這就是目前正在發揮作用的組合。

And our next question will come from Shannon Cross with Credit Suisse.

我們的下一個問題將來自瑞士信貸的 Shannon Cross。

Chuck and Jeff, I'm wondering, can you talk a bit about how you're seeing AI as it relates to your product set. [Enrique] was talking about AI PCs. There's obviously -- on the server side, I think you had some announcements. But I'm also wondering in your conversations with customers, and I know it's early days, but how they're thinking about AI deployments where they think the data will reside where they want to inference. Just I'm curious because you have all these conversations, it would be helpful to get some feedback.

Chuck 和 Jeff，我想知道，您能談談您如何看待與您的產品集相關的人工智能嗎？ [Enrique] 在談論 AI PC。很明顯——在服務器端，我想你有一些公告。但我也想知道在你與客戶的對話中，我知道現在還為時尚早，但他們是如何考慮 AI 部署的，他們認為數據將駐留在他們想要推斷的地方。我只是很好奇，因為你們進行了所有這些對話，獲得一些反饋會很有幫助。

You bet, Shannon. Let me start on the question of kind of the demand we're seeing and what we're hearing from customers, and then I'm going to ask Jeff to jump in on the technical aspects and what we're seeing in the portfolio. But look, I mean, we are seeing a lot of demand for AI optimized infrastructure. That's obviously a very good thing for our business. Customers, enterprises are broadly pursuing and experimenting with AI efforts right now. They're doing it on-premise and at the edge. And as the leader in infrastructure and data, that obviously has -- is good news for our business. As we said in our prepared remarks, demand for our XC9680, that's our 16G and first-to-market purpose-built AI server with 8 NVIDIA H100 or A100 GPUs, has been very good. But we're also seeing demand across our portfolio. It's not simply the specialized 8-way GPU servers that can run AI, not everything needs billions of parameters.

你打賭，香農。讓我從我們看到的需求類型和我們從客戶那裡聽到的問題開始，然後我將請 Jeff 談談技術方面以及我們在產品組合中看到的內容。但是，我的意思是，我們看到了對 AI 優化基礎設施的大量需求。這對我們的業務來說顯然是一件非常好的事情。客戶、企業目前正在廣泛追求和試驗人工智能。他們在內部和邊緣進行。作為基礎設施和數據領域的領導者，這顯然對我們的業務來說是個好消息。正如我們在準備好的評論中所說，對我們的 XC9680 的需求非常好，這是我們的 16G 和首次上市的專用 AI 服務器，配備 8 個 NVIDIA H100 或 A100 GPU。但我們也看到了對我們產品組合的需求。不僅僅是專門的 8 路 GPU 服務器可以運行 AI，並不是所有的東西都需要數十億的參數。

So net, look, we look at it and say, AI is going to drive demand for our business. It's going to drive demand for our business on-premise and at the edge, which is incremental growth and profitability for us. I just caution, as we said in our prepared remarks, that we are early in the demand cycle. And it's going to take time for that to translate to the P&L. Excitement for AI applications is ahead of GPU supply right now. And AI-optimized servers are still a very small part of our overall server mix. So ultimately to see a full recovery in our server business, it's going to require mainstream service to accelerate as well.

所以淨，看，我們看著它說，人工智能將推動對我們業務的需求。它將推動對我們內部和邊緣業務的需求，這對我們來說是增量增長和盈利能力。我只是提醒，正如我們在準備好的發言中所說，我們處於需求週期的早期。將其轉化為損益表需要時間。目前，對 AI 應用程序的熱情領先於 GPU 供應。 AI 優化的服務器在我們的整體服務器組合中仍然只佔很小的一部分。因此，最終要看到我們服務器業務的全面復甦，也需要主流服務來加速。

Yes. Maybe Shannon some perspective on use cases. We've had AI and our PCs for years. So I don't know if it was recently said that we've been putting AI in our products across our server portfolio, our storage portfolio and our PC portfolio for many, many years. So those that are following -- that's the right thing to do. It's putting intelligence into our products to make better experiences for customers is absolutely what we've been doing and see. We're excited in the PC with what was announced at BUILD last week with new versions of Windows 11 with co-pilot and more integrated AI capability. I love it as perhaps a reason to buy a new PC. We've got to get that done and get the products out of the marketplace, but that's a pretty exciting opportunity being able to use Windows and the different forms of applications in a very different way and a more efficient way. So that's exciting. And then where all the buzz is, is on generative AI and large language models. And it's an incredible opportunity.

是的。也許香農對用例有一些看法。我們擁有 AI 和 PC 多年。所以我不知道最近是否有人說我們多年來一直在我們的服務器產品組合、存儲產品組合和 PC 產品組合中使用 AI。所以那些正在追隨的人——這是正確的做法。將智能融入我們的產品，為客戶提供更好的體驗，這絕對是我們一直在做和看到的事情。我們對 PC 感到興奮，因為上週在 BUILD 上宣布了新版本的 Windows 11，具有副駕駛和更多集成的 AI 功能。我喜歡它，因為它可能是購買新 PC 的一個理由。我們必須完成這項工作並將產品推出市場，但這是一個非常令人興奮的機會，能夠以非常不同的方式和更有效的方式使用 Windows 和不同形式的應用程序。所以這很令人興奮。然後所有的話題都集中在生成人工智能和大型語言模型上。這是一個難得的機會。

Demand, as Chuck referred to, has been great. I think that continues because, quite frankly, what customers are trying to do is to figure out how to use their data with their business context to get better business outcomes and greater insight to their customers and to their business. And while there's a lot of discussion around these large generalized AI models, we think the more specific opportunity is around domain-specific and process-specific generative AI where customers can use their own data. The data sets tend to be smaller. Those data sets then can be trained more quickly, and they can use their business context to help them inform and run their businesses better. We think that's the opportunity in front of us.

正如查克所說，需求一直很大。我認為這種情況會持續下去，因為坦率地說，客戶正在嘗試做的是弄清楚如何將他們的數據與他們的業務環境結合使用，以獲得更好的業務成果，並對他們的客戶和他們的業務有更深入的了解。雖然圍繞這些大型通用 AI 模型進行了大量討論，但我們認為更具體的機會是圍繞特定領域和特定流程的生成 AI，客戶可以在其中使用自己的數據。數據集往往更小。然後可以更快地訓練這些數據集，並且他們可以使用他們的業務環境來幫助他們更好地告知和運營他們的業務。我們認為這是擺在我們面前的機會。

And it's quite honestly why we announced Project Helix last week with NVIDIA, an opportunity to take enterprise AI at scale. They are easy to deploy, easy to design, easy to put install and use pretrained models, tune models and be able to drive inference out in the data center and at the edge. So we're pretty excited about the opportunities in front of us.

老實說，這就是我們上週與 NVIDIA 宣布 Project Helix 的原因，這是一個大規模採用企業 AI 的機會。它們易於部署、易於設計、易於安裝和使用預訓練模型、調整模型並能夠在數據中心和邊緣進行推理。因此，我們對擺在我們面前的機會感到非常興奮。

And our next question will come from David Vogt with UBS.

我們的下一個問題將來自瑞銀集團的 David Vogt。

I just want to dig into ISG and specifically on the server and storage margin. You mentioned loss volume leverage. Was there anything sort of unique in the quarter that maybe hit margins? I know you had a little bit of a benefit in the fourth quarter that was not sustainable. And how do we think about it as demand comes back reasonably to normal? Should server margins and storage margins be in that sort of historical 11% to 12% range? And longer term, what is potentially richer configurations mean for ISG margins down the road as we see obviously higher end use cases? And obviously, the talk of the town is AI. But as configurations become richer and richer, does that mean better pricing and ultimately clearly better margins for the ISG business? Or should we expect sort of a run rate that's more consistent with the past?

我只想深入了解 ISG，特別是服務器和存儲利潤。你提到了損失量槓桿。本季度是否有任何獨特之處可能會影響利潤率？我知道您在第四季度獲得了一些不可持續的收益。隨著需求合理恢復正常，我們如何看待它？服務器利潤率和存儲利潤率應該在歷史上的 11% 到 12% 的範圍內嗎？從長遠來看，當我們看到明顯更高端的用例時，潛在更豐富的配置對未來 ISG 利潤率意味著什麼？顯然，最熱門的話題是 AI。但隨著配置變得越來越豐富，這是否意味著更好的定價和最終明顯更好的 ISG 業務利潤率？還是我們應該期待一種與過去更一致的運行率？

Well, David, let's talk what we saw in Q1 just for a second on ISG margin. So in general, what we saw was relatively strong server margins given the cost environment we were in. So with the inventory work that the team did, the ability to get to the component -- incrementally lower component cost was helpful in the discover portfolio in Q1. And so I'm pleased with what we saw from the server op margin in Q1. Storage is a slightly different story. Now think about seasonality in storage typically our softest quarter from a demand perspective and from a shift perspective with storage and that clearly played out with what we saw in the quarter, generally soft storage demand. And in there, we did see some year-over-year margin pressure given some of the descaling that we saw, quite frankly, with lower revenue, lower gross margin dollars and some pressure on operating margin there.

好吧，大衛，讓我們談談我們在第一季度看到的關於 ISG 保證金的情況。因此，總的來說，考慮到我們所處的成本環境，我們看到的是相對較高的服務器利潤率。因此，通過團隊所做的庫存工作，獲得組件的能力——逐漸降低組件成本有助於發現投資組合Q1。因此，我對我們從第一季度的服務器運營利潤率中看到的情況感到滿意。存儲是一個稍微不同的故事。現在，從需求的角度和從存儲的轉變角度考慮存儲的季節性通常是我們最疲軟的季度，這顯然與我們在本季度看到的一般疲軟的存儲需求有關。在那裡，我們確實看到了一些同比利潤率壓力，因為我們看到了一些減少，坦率地說，收入下降，毛利率下降，營業利潤率受到一些壓力。

Now look, we'll continue to make sure that we're adjusting the portfolio and the cost environment as we move forward in that as you go forward. As you fast forward and you think about the opportunity around margins, given pricing and component costs, I think there's some opportunity there that we'll be able to take advantage of as it relates to gross margin dollars, particularly on configuration as configurations get richer. I do think that, as Yvonne and Chuck alluded to, that the server ASP dynamic where we're going to see some declines over time, given some of the pricing dynamics. So I think you get back to more historical norms, and storage is generally going to be just what's the revenue velocity going to look like in the mix within that. Chuck, Yvonne, I don't know if you'd add anything to that.

現在看，我們將繼續確保我們在前進的過程中調整投資組合和成本環境。當你快進時，你會考慮利潤率的機會，考慮到定價和組件成本，我認為我們可以利用一些機會，因為它與毛利率美元有關，特別是隨著配置變得更豐富而在配置方面.我確實認為，正如 Yvonne 和 Chuck 所暗示的那樣，考慮到一些定價動態，我們將看到服務器 ASP 動態隨著時間的推移出現一些下降。所以我認為你會回到更多的歷史規範，而存儲通常會成為其中混合的收入速度。 Chuck、Yvonne，我不知道你們是否願意對此進行補充。

No, I think you got it. I think the question on AI margins, I would just continue to say, look, we view it as incremental growth and incremental margin dollars, the ASPs of our AI-optimized service are a multiple of our normal server average, and we see lots of opportunities to provide services around this infrastructure. These are critical workloads that are dealing with critical-sensitive data. So we ultimately don't see it as a commoditized space in the enterprise. But as Shannon alluded to in her question, it's still early days.

不，我想你明白了。我認為關於 AI 利潤率的問題，我只想繼續說，看，我們將其視為增量增長和增量利潤美元，我們 AI 優化服務的 ASP 是我們正常服務器平均值的倍數，我們看到很多圍繞該基礎設施提供服務的機會。這些是處理關鍵敏感數據的關鍵工作負載。所以我們最終不會將其視為企業中的商品化空間。但正如香農在她的問題中提到的那樣，現在還為時過早。

And we will take a question from Samik Chatterjee with JPMorgan.

我們將接受摩根大通 Samik Chatterjee 的提問。

I guess just into the question on the second half sort of recovery that you're expecting more in terms of sequential growth. Just want to clarify if you're sort of expecting most of that to be driven by CSG or maybe what's your assumption in terms of ISG returning to sequential growth in the second half. And more sort of associated with that, how should I think about the reductions that you're doing on OpEx? Do we start to sort of think that you get back to sort of stable OpEx from -- as you see the business return to growth in the second half?

我想就下半年的複蘇問題而言，您對連續增長的期望更高。只是想澄清一下，您是否期望其中大部分是由 CSG 推動的，或者您對 ISG 在下半年恢復連續增長的假設是什麼。與此相關的更多的是，我應該如何考慮您在 OpEx 上所做的削減？當您看到下半年業務恢復增長時，我們是否開始認為您從某種程度上恢復了穩定的運營支出？

Sure. Let me take that, Samik. As we are talking about sequential growth in the second half across the portfolio and inclusive of ISG and CSG, from an overall standpoint, I think that as we look at an OpEx level and spend level, that's certainly something that we'll continue to optimize. But I think overall, you should expect, as I stated earlier, continued improvement as the year progresses, but in an expected competitive environment. So I don't know if anybody had anything else to add.

當然。讓我接受，Samik。當我們談論下半年整個投資組合（包括 ISG 和 CSG）的連續增長時，從整體的角度來看，我認為當我們審視運營支出水平和支出水平時，我們肯定會繼續優化這一點.但我認為總的來說，正如我之前所說，你應該期待隨著時間的推移持續改進，但在預期的競爭環境中。所以我不知道還有沒有人要補充。

You got it, Yvonne.

你明白了，伊馮娜。

And our next question will come from Michael Ng with Goldman Sachs.

我們的下一個問題將來自高盛的 Michael Ng。

I just had one on the segment margins. I think last quarter, you said CSG margins might be back in the normalized 5% to 6% range for the year and ISG margins would be 200 to 250 basis points lower than the 15.6% in the fiscal fourth quarter. I was just wondering if that's still the case? Or are there any puts and takes that we should consider incrementally relative to last quarter?

我剛剛在細分市場利潤率上有一個。我認為上個季度，你說 CSG 利潤率可能回到今年正常的 5% 到 6% 範圍內，而 ISG 利潤率將比第四財季的 15.6% 低 200 到 250 個基點。我只是想知道是否仍然如此？或者，相對於上一季度，我們應該逐步考慮哪些看跌期權和看跌期權？

Michael, if you look at -- I did say that last quarter, by the way, around CSG of 5 to 6. It's come in stronger than what I had anticipated, quite frankly, because we got to lower component costs. As we thought -- as the inventory management, I think, was quite strong. So that, combined with the pricing discipline that we talked about in our talk track as well as the fact that, quite frankly, we didn't see a lot of elasticity out there. So to burn economics on transactions or customer deals that didn't make sense to us we passed on.

邁克爾，如果你看——我確實在上個季度說過，大約 CSG 為 5 到 6。坦率地說，它比我預期的要強，因為我們必須降低組件成本。正如我們所想的那樣——我認為庫存管理非常強大。因此，結合我們在談話軌道上談到的定價紀律，以及坦率地說，我們沒有看到太多彈性的事實。因此，為了在對我們來說沒有意義的交易或客戶交易上燃燒經濟，我們放棄了。

So CSG profitability was quite strong. And that's really a driver of a lot of the margin upside or the profitability upside we saw in the quarter. As it relates to ISG, it's sort of a tale of 2 different sort of [labs], right? The server margins were in the range that I expect it to be maybe a little bit stronger than I expected them to be given the component cost declines again. Storage margins were lower than I anticipated, quite frankly, because of the descaling that we saw in the P&L with the lower revenue, which obviously translates into lower gross margin dollars. And even though we've taken a number of OpEx actions, those are going to work their way through the P&L as we go through the year. So yes. So there were some -- obviously, some variances against the guide that we gave. I think we'll work through those as we go forward.

因此南玻的盈利能力相當強勁。這確實是我們在本季度看到的許多利潤率上升或盈利能力上升的驅動因素。就 ISG 而言，它有點像兩個不同類型的 [labs] 的故事，對吧？服務器利潤率在我預期的範圍內，可能比我預期的要強一點，因為組件成本再次下降。坦率地說，存儲利潤率低於我的預期，因為我們在損益表中看到收入減少，這顯然轉化為較低的毛利率美元。儘管我們已經採取了一些運營支出行動，但這些行動將在我們度過這一年時通過損益表發揮作用。所以是的。所以有一些 - 顯然，與我們提供的指南存在一些差異。我認為我們會在前進的過程中解決這些問題。

Our next question will come from Simon Leopold with Raymond James.

我們的下一個問題將來自 Simon Leopold 和 Raymond James。

I wanted to see if you could update us on how you're thinking about the overall PC market, sort of this idea of what's the new normal and where is your place in it, and sort of the trajectory given all the moving parts coming out of kind of this post-pandemic normalization. Where are we in the cycle? And what's your expectation for the year?

我想看看您是否可以向我們介紹您對整個 PC 市場的看法，關於什麼是新常態以及您在其中的位置的想法，以及考慮到所有移動部件的發展軌跡這種大流行後的正常化。我們在循環中的什麼位置？您對這一年有何期望？

Yes. Let me build on my prior comments. Look, I don't think we have a ton to add to our prior public comments on the size of the unit PC TAM. We continue to peg at around 250 million units. And as I always emphasize, the reality is not all of these PC units are created equal, right? So on an ASP basis, a commercial non-Chrome PC is more valuable than a Chromebook and a premium consumer PC above $800 is 2.8x more valuable than a mainstream consumer PC. So when we look at the TAM post pandemic, what we see is a bigger revenue and profit market than we did going into the pandemic, and that's net impact of the PC being asked to do more in a hybrid world.

是的。讓我以我之前的評論為基礎。看，我認為我們沒有什麼可以添加到我們之前關於單位 PC TAM 大小的公開評論中。我們繼續與 2.5 億個單位掛鉤。正如我一直強調的那樣，事實並非所有這些 PC 設備生而平等，對嗎？因此，在 ASP 的基礎上，商用非 Chrome PC 比 Chromebook 更有價值，而 800 美元以上的高端消費 PC 的價值是主流消費 PC 的 2.8 倍。因此，當我們審視大流行後的 TAM 時，我們看到的是一個比大流行時更大的收入和利潤市場，這是 PC 被要求在混合世界中做更多事情的淨影響。

In terms of the refresh cycle, again, as we called out, we see the business moving closer to normal sequential. So the rate of decline in the business has come down. That's starting to show signs of stability. And look, what we know is we've, as an industry, shipped 950 million units over the last 3 years. We, Dell, shipped 160 million PCs over the last 3 years. That mix is more heavily notebook. And all of our telemetry data says those devices are still in use.

就刷新周期而言，正如我們所說，我們再次看到業務正在接近正常順序。因此，業務下降的速度已經下降。這開始顯示出穩定的跡象。看，我們所知道的是，作為一個行業，我們在過去 3 年中出貨了 9.5 億台。我們，戴爾，在過去 3 年中售出了 1.6 億台 PC。就是筆記本混的比較重。我們所有的遙測數據都表明這些設備仍在使用中。

So you have a commercial PC installed base that's at the highest levels that we've seen since 2014, given that we're now entering the fifth quarter of a commercial PC downturn that is typically 4 to 6 quarters in length. All of that points to improving sequential growth as the year progress. When and how fast that recovers, to be determined. But we certainly see customers having stretched a very large commercial installed base for some time.

因此，鑑於我們現在正進入商用 PC 低迷的第五季度，通常持續 4 到 6 個季度，因此您的商用 PC 安裝基礎處於我們自 2014 年以來的最高水平。所有這些都表明，隨著時間的推移，環比增長有所改善。恢復的時間和速度有待確定。但我們當然看到客戶在一段時間內擴大了非常龐大的商業安裝基礎。

Yes, I might add since the question was how do we view ourselves going into the pandemic and coming out. We were taking share before the pandemic. We took share through the pandemic. We expect to take share after the pandemic. We are a consolidator. We were consolidating before, through and after. We'll continue to focus on the differentiated aspects of our model, which allows us to attach services, software and peripherals and drive differentiated performance with our business, which you saw in the quarter. And we are the revenue leader, which is a tribute to what Chuck said, we focus on the most valuable parts of the market where our model is differentiated and our products have an advantage.

是的，我可能會補充說，因為問題是我們如何看待自己進入大流行和走出去。我們在大流行之前就分享了。我們在大流行中分享了份額。我們希望在大流行之後分享。我們是整合者。我們在之前、期間和之後都在鞏固。我們將繼續專注於我們模型的差異化方面，這使我們能夠附加服務、軟件和外圍設備，並通過我們的業務推動差異化績效，您在本季度看到了這一點。我們是收入的領導者，這是對查克所說的致敬，我們專注於我們的模式差異化且我們的產品具有優勢的市場中最有價值的部分。

And we have a question from Tim Long with Barclays.

我們有來自巴克萊銀行的 Tim Long 的問題。

Could you talk a little bit you mentioned APEX Cloud Services and some mentions of the other service platforms. Could you just give us a sense as to kind of scale of those businesses now? What inning are we in? And do you think this is being aided by the macro and maybe touch a little bit on profitability for these businesses as they scale?

你能談談你提到的 APEX 雲服務和其他服務平台的一些提及嗎？你能告訴我們現在這些業務的規模嗎？我們在第幾局？你認為這是否得到了宏觀的幫助，並且隨著這些企業規模的擴大，可能會影響到它們的盈利能力？

Yes. Thanks for the question. Let me share what I can. Look, we continue to be really pleased with our APEX strategy and performance. We're seeing really healthy customer interest and growth, particularly in this economic environment where customers are looking to stretch every IT dollar and they're looking to optimize cloud spend. Look, as we've highlighted in the past, our focus is on trying to offer customers choice across our portfolio and steadily building the customer base and our ARR while driving technical milestones. So on the latter, we made an important series of APEX announcements at DTW last week, including a number of differentiated multi-cloud solutions, APEX cloud platforms, APEX Storage for Public Cloud and our APEX Navigator offering. And then we extended our APEX portfolio across our entire business with the addition of APEX Compute and APEX PC as a Service.

是的。謝謝你的問題。讓我分享我能做的。看，我們仍然對我們的 APEX 戰略和表現感到非常滿意。我們看到了真正健康的客戶興趣和增長，特別是在這種經濟環境中，客戶希望充分利用每一分 IT 資金，並希望優化雲支出。看，正如我們過去強調的那樣，我們的重點是努力為客戶提供我們產品組合中的選擇，並在推動技術里程碑的同時穩步建立客戶群和我們的 ARR。因此，關於後者，我們上週在 DTW 上發布了一系列重要的 APEX 公告，包括許多差異化的多雲解決方案、APEX 雲平台、用於公共雲的 APEX 存儲和我們的 APEX Navigator 產品。然後，我們通過添加 APEX Compute 和 APEX PC 即服務，將 APEX 產品組合擴展到整個業務。

So it is now the most comprehensive as-a-service and multi-cloud portfolio in the industry and we're getting a lot of client and customer interest in that offering. We're just going to continue to focus on customers. We'll continue to provide periodic updates on our progress, like we did last year in terms of the size of the business. But for now, we're just focused on expanding the portfolio and the customer interest we're seeing.

因此，它現在是業內最全面的即服務和多雲產品組合，我們的客戶和客戶對該產品感興趣。我們將繼續關注客戶。我們將繼續定期更新我們的進展，就像我們去年在業務規模方面所做的那樣。但就目前而言，我們只是專注於擴大我們所看到的產品組合和客戶興趣。

Okay. And just profitability as that ramps, if you could touch on that.

好的。如果你能談談的話，那就是盈利能力的提高。

We're not disclosing financial parameters around the APEX business, as we've said. We'll do that periodically when we have meaningful milestones to report as we did last year in Q2.

正如我們所說，我們不會披露 APEX 業務的財務參數。當我們有有意義的里程碑要報告時，我們會像去年第二季度那樣定期這樣做。

And our next question will come from Sidney Ho with Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Sidney Ho。

I want to go back to ISG. Server revenue was obviously not weaker than storage, as you can expected. You guided ISG to be down low single digits sequentially in the second quarter. Do you expect the trajectory to be different between server and storage? Maybe talk about some of the trends you see in the first month of the quarter, and also, I want to ask about, are you still thinking the group ISG being down mid-teens percentage for the year as you allude to a quarter ago?

我想回到 ISG。如您所料，服務器收入顯然不弱於存儲。您引導 ISG 在第二季度連續下降個位數。您預計服務器和存儲之間的軌跡會有所不同嗎？也許談談你在本季度第一個月看到的一些趨勢，而且，我想問一下，你是否仍然認為 ISG 集團今年的百分比下降了十幾歲，就像你在一個季度前提到的那樣？

Maybe I'll start with just the demand environment, and Yvonne can talk about the specific components of the guide. Look, it just remains a challenging demand environment clearly on ISG. The caution that we saw enter the spending environment in Q2 of last year continues a year later. Customers aren't outright canceling digital projects, but they are prioritizing spend and they continue to constrain investments in infrastructure hardware after the burst of pandemic spending the last couple of years. If you look specifically at servers, the most acute demand challenges are in the large bids with the largest customers. That reflects that tightening budget environment, and we're seeing lengthening decision timelines. And look on storage, as we cautioned during our Q4 earnings call, it's not immune to the IT cycles. It typically lags servers, but it's never fully insulated. And after seeing slowdowns in small and medium business in Q4, we saw a slowdown in larger customers in Q1. So you take our Q4 and our Q1 storage results together, we're clearly seeing a lull in the storage market. And so that's what's inputted into our guidance of ISG, down in the low single digits in Q2, which just sort of reflects that continued cautious spending environment.

也許我將從需求環境開始，Yvonne 可以談談指南的具體組成部分。看，ISG 顯然仍然是一個具有挑戰性的需求環境。我們在去年第二季度看到進入支出環境的謹慎情緒在一年後繼續存在。客戶並沒有完全取消數字項目，但他們正在優先考慮支出，並且在過去幾年大流行性支出爆發後，他們繼續限制對基礎設施硬件的投資。如果您專門查看服務器，最嚴峻的需求挑戰是與最大客戶的大額出價。這反映出緊縮的預算環境，我們看到決策時間延長。看看存儲，正如我們在第四季度財報電話會議上警告的那樣，它不能免受 IT 週期的影響。它通常滯後於服務器，但它從來沒有完全隔離。在第四季度看到中小型企業放緩之後，我們看到第一季度大客戶放緩。所以你把我們第四季度和第一季度的存儲結果放在一起，我們清楚地看到存儲市場停滯不前。因此，這就是我們對 ISG 指導意見的輸入，在第二季度下降到較低的個位數，這在某種程度上反映了持續謹慎的支出環境。

Yes. And Chuck, I'd add, I think that continues through the -- in our guidance for the rest of the year. As you articulated, servers slowed earlier than storage, and we started seeing storage slow in Q4. So we'll see those both improve as the year goes on sequentially. But obviously, storage is -- was trailing from an improvement standpoint as we would normally see cyclically.

是的。查克，我想補充一點，我認為這將持續到——在我們今年剩餘時間的指導中。正如您所說，服務器比存儲速度更慢，我們在第四季度開始看到存儲速度變慢。因此，隨著時間的推移，我們將看到這兩者都在改善。但顯然，從我們通常會看到的周期性改善的角度來看，存儲是落後的。

We'll now take our final question from Krish Sankar with TD Cowen.

我們現在將與 TD Cowen 一起接受 Krish Sankar 的最後一個問題。

Eddy, on behalf of Chris. Your competitors in storage have expressed positive views on QLC NAND and its potential to replace hybrid and HDD storage system. Given your company's size and exposure to these types of systems, I'm curious to know your thoughts on QLC. I know you guys have a QLC product that you announced last year, but -- do you think other QLC systems are likely to compete heavily on price with hybrid and HD systems on a [30-gigabyte] basis?

Eddy，代表 Chris。您在存儲領域的競爭對手對 QLC NAND 及其替代混合和 HDD 存儲系統的潛力表達了積極的看法。鑑於貴公司的規模和對這些類型系統的接觸，我很想知道您對 QLC 的看法。我知道你們去年發布了一款 QLC 產品，但是——您認為其他 QLC 系統可能會在 [30 GB] 的基礎上與混合和高清系統在價格上展開激烈競爭嗎？

Yes. Over time, absolutely, which is why we're pursuing it a year from others. We'll continue to build across our portfolio. Today, given the compressed pricing of NAND, you don't necessarily need QLC to meet those cost targets or price targets. But we're well aware of the dynamics. And I think, have a very good understanding of the technology, given our storage portfolio and our aggregate buy across NAND in our sector is, I think, the largest. We understand the dynamics and plan accordingly.

是的。隨著時間的推移，絕對是，這就是為什麼我們要從其他人那裡追逐一年。我們將繼續構建我們的產品組合。今天，鑑於 NAND 的壓縮定價，您不一定需要 QLC 來滿足這些成本目標或價格目標。但我們很清楚動態。而且我認為，鑑於我們的存儲產品組合和我們在我們行業中對 NAND 的總購買量是最大的，我認為對技術有很好的理解。我們了解動態並相應地進行計劃。

Well, thanks, Jeff. And so let me do the close here. So all of you probably know at this point that I did announce my retirement from Dell at the end of the second quarter. So including today's call, this is my 38th earnings call as the CFO of the company. And so it's obviously been an amazing journey as we've transformed the company and created shareholder value over the last decade or so with our solution capability, the EMC merger, then the latest being our spin out of VMware as our shareholders. And we also have evolved our technology vision. We're #1 in virtually every category, and we're clearly at the center of our customers' digital journey.

好吧，謝謝，傑夫。所以讓我在這裡結束。所以你們所有人現在可能都知道我確實在第二季度末宣布從戴爾退休。因此，包括今天的電話會議在內，這是我作為公司首席財務官的第 38 次財報電話會議。因此，這顯然是一段了不起的旅程，因為我們在過去十年左右的時間里通過我們的解決方案能力、EMC 合併以及最近的一次分拆 VMware 作為我們的股東，實現了公司轉型並創造了股東價值。我們還改進了我們的技術願景。我們幾乎在每個類別中都排名第一，而且我們顯然處於客戶數字之旅的中心。

So I'm pretty proud, and incredibly proud, I should say, of the team and the company and what we've been able to accomplish. But I also want to just say thank you to all of you for your feedback, your partnership and your deep relationships that we've had with the investment community. So I'm going to leave the company in strong hands with a great team and great hands with Yvonne as she steps into the leadership role as the CFO. And obviously, I'll be cheering the company on as we move forward. So let me just finish by saying thank you, thanks for your support and your trust over the last decade. So talk to you guys at some point in the future. Take care.

因此，我為團隊和公司以及我們所取得的成就感到非常自豪，我應該說非常自豪。但我也想對大家的反饋、合作夥伴關係以及我們與投資界建立的深厚關係表示感謝。因此，在 Yvonne 擔任首席財務官的領導角色時，我將離開公司，擁有一支強大的團隊和強大的雙手。顯然，在我們前進的過程中，我會為公司加油。最後，讓我說聲謝謝，感謝您在過去十年中的支持和信任。所以在未來的某個時候和你們談談。小心。

All right. Thanks, Tom. That wraps the call today.

好的。謝謝，湯姆。今天的電話會議到此結束。

Thank you. This concludes today's conference call. We appreciate your participation. You may disconnect at this time.

謝謝。今天的電話會議到此結束。感謝您的參與。此時您可以斷開連接。