Extreme Networks Inc (EXTR) 2024 Q3 法說會逐字稿

Thank you for standing by, and welcome to the Extreme Networks Third Quarter Fiscal Year 2024 financial results.

感謝您的耐心等待，歡迎閱讀極進網絡 2024 財年第三季財務業績。

(Operator Instructions)

（操作員說明）

As a reminder, today's program is being recorded.

提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Mr. Stan Kovler, Vice President of Corporate Strategy and Investor Relations.

現在我想介紹一下今天節目的主持人，企業策略和投資者關係副總裁史丹·科夫勒先生。

Please go ahead, sir.

請繼續，先生。

Yes, and thank you, operator.

是的，謝謝您，接線生。

Good morning and welcome to the Extreme Networks.

早安，歡迎來到極進網路。

Third Quarter 2024 earnings conference call and stakeholder Vice President of Corporate Development and Investor Relations.

2024 年第三季財報電話會議和利害關係人企業發展和投資者關係副總裁。

With me today are Extreme's President and CEO, Ed Meyercord, and EVP and CFO, Kevin Rhodes.

今天與我在一起的有 Extreme 的總裁兼執行長 Ed Meyercord 以及執行副總裁兼財務長 Kevin Rhodes。

We just distributed a press release and filed an eight K detailing Extreme Networks' financial results for the quarter.

我們剛剛發布了一份新聞稿並提交了一份 8K 詳細說明極進網絡本季財務業績的文件。

For your convenience, a copy of the press release, which includes our GAAP to non-GAAP reconciliations is available in the Investor Relations section of our website at extremenetworks.com, along with our earnings presentation, today's call and our discussion may include certain forward-looking statements based on our current expectations about Stream's future business, financial and operational results, growth expectations and strategies.

為了您的方便，我們網站Extremenetworks.com 的投資者關係部分提供了新聞稿的副本，其中包括我們的GAAP 與非GAAP 調節表，以及我們的收益演示、今天的電話會議和我們的討論可能包括某一些前瞻性內容-基於我們目前對 Stream 未來業務、財務和營運績效、成長預期和策略的預期的陳述。

Our financial disclosures on this call will be on a non-GAAP basis, unless stated otherwise.

除非另有說明，我們在本次電話會議上的財務揭露將基於非公認會計原則（Non-GAAP）。

We caution you not to put undue reliance on these forward-looking statements because they involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these statements.

我們提醒您不要過度依賴這些前瞻性陳述，因為它們涉及風險和不確定性，可能導致實際結果與這些陳述預期的結果有重大差異。

These risks are described in our risk factors and the 10 K report for the period ended June 30th, 2023, and subsequent 10 Q reports filed with the SEC Any forward-looking statements made on this call reflect our analysis as of today, and we have no plans or duty to update them, except as required by law.

這些風險在我們的風險因素和截至2023 年6 月30 日的期間的10 K 報告以及隨後向SEC 提交的10 Q 報告中進行了描述。我們截至今天的分析，並且我們已除非法律要求，否則沒有計劃或義務更新它們。

Following our prepared remarks, we will take questions from now.

在我們準備好的發言之後，我們將從現在開始回答問題。

I'll turn the call over to exchange President and CEO, Ed Meyercord.

我將把電話轉給總裁兼執行長 Ed Meyercord。

Thank you, Stan, and thank you all for joining us this morning.

謝謝斯坦，也謝謝大家今天早上加入我們。

Our results were in line to slightly better than our third quarter outlook.

我們的業績略好於第三季的預期。

Highlights from Q. three include net new logo bookings grew double digits globally, with particular strength in the US market.

第三季的亮點包括全球新商標淨預訂量成長了兩位數，其中美國市場尤其強勁。

Our SaaS ARR grew by 38% year over year as we continued to deliver in our value proposition of flexibility and simplicity with our One Network one cloud strategy.

我們的 SaaS ARR 年比成長了 38%，因為我們繼續透過「一網一雲」策略提供靈活性和簡單性的價值主張。

And we were successful in reducing channel inventory at the high end of our 40 to 50 million range, bringing us closer to channel normalization.

我們成功地減少了 4000 至 5000 萬的高端渠道庫存，使我們更接近渠道正常化。

As expected, we're calling for meaningful sequential revenue growth heading into our fiscal fourth quarter.

正如預期的那樣，我們呼籲第四財季營收實現有意義的連續成長。

But note that industry-wide customer and channel digestion will continue to create a drag on normalized bookings and revenue customers and channel partners continue to work through purchases and orders, and we expect demand normalization during the second half of calendar 20.

但請注意，全行業的客戶和通路消化將繼續對正常化的預訂和收入造成拖累，客戶和通路合作夥伴將繼續透過採購和訂單開展工作，我們預計需求將在 20 月下半年實現正常化。

For the expected sequential growth in revenue, bookings will help us return to solid profitability and cash flow generation during the fourth quarter, our funnel of opportunities is up from the prior quarter.

對於營收的預期環比成長，預訂將幫助我們在第四季度恢復穩健的獲利能力和現金流量，我們的機會管道比上一季上升。

We anticipate that the upcoming stage of growth will be driven by an increasing number of deals that exceed 1 billion as we continue to move upmarket.

我們預計，隨著我們繼續向高端市場進軍，下一階段的成長將由超過 10 億筆的交易數量不斷增加所推動。

Last week, we hosted our annual Connect user conference in Fort Worth, Texas.

上週，我們在德克薩斯州沃思堡舉辦了年度 Connect 用戶大會。

It was oversubscribed and our biggest event yet with about 19% growth in customer attendees from a year ago, the event focused on the intersection of networking, security and AI, and we made several announcements relative to those topics.

這次活動獲得超額認購，是我們迄今為止規模最大的活動，與一年前相比，參加客戶人數增長了約19%，該活動重點關注網絡、安全和人工智慧的交叉點，我們發布了幾與這些主題相關的公告。

We've demonstrated IQstream cloud, Universal ZTNA., the first network security offering to integrate network application and device security within a single solution by combining cloud, Mac and ZTNA. into a single easy-to-use SaaS offering.

我們展示了 IQstream 雲端、Universal ZTNA，這是首款透過結合雲端、Mac 和 ZTNA 將網路應用程式和裝置安全性整合到單一解決方案中的網路安全產品。整合為一個易於使用的 SaaS 產品。

We help customers ensure unified observability, frictionless user experiences and a consistent security policy for applications and devices.

我們幫助客戶確保應用程式和裝置的統一可觀察性、流暢的使用者體驗以及一致的安全策略。

As the BPM market transitions to ZTNA., the proliferation of individual applications each with their own policy dashboard is adding complexity and expense for enterprise customers, Vice President of one of our multibillion-dollar channel partners joined us on the main stage of Connect and said, the identity focused approach with a common policy engine is a game changer.

隨著BPM 市場向ZTNA 過渡，每個都有自己的策略儀表板的單一應用程式的激增增加了企業客戶的複雜性和費用，我們價值數十億美元的通路合作夥伴之一的副總裁在Connect主舞台上加入了我們，並表示，具有通用策略引擎的以身份為中心的方法是遊戲規則的改變者。

This was further evidenced by the pack breakout sessions at Connect where discussions on Zero Trust Drew's standing-room-only crowds when added to our unique enterprise fabric.

Connect 的分組分組討論進一步證明了這一點，當將零信任添加到我們獨特的企業結構中時，有關零信任的討論吸引了只有站著的人群。

This allows us to present a highly differentiated security value proposition to enterprise customers we also increased the scale of our fabric solution to extend fabric over SD-WAN, broadening the reach from the data center to branch customers love our fabric because it's simple to deploy highly resilient makes it easy to segment the network, which dramatically minimizes the blast radius and exposure of cyberattacks.

這使我們能夠向企業客戶提供高度差異化的安全價值主張，我們還擴大了結構解決方案的規模，以透過SD-WAN 擴展結構，擴大從資料中心到分公司的覆蓋範圍。 ，因為它易於高度部署彈性使得網路分段變得容易，從而極大地減少網路攻擊的爆炸半徑和暴露程度。

We expect the broadening of our security offerings to drive significant traction for our business with growth opportunities across our top verticals such as education, health care, retail, manufacturing, transportation, logistics, et cetera.

我們預計，安全產品的擴展將為我們的業務帶來巨大的吸引力，為我們的頂級垂直行業（如教育、醫療保健、零售、製造、運輸、物流等）帶來成長機會。

Our customers and partners also reacted very favorably to IQstream labs, a dynamic ecosystem where creativity, collaboration, cutting edge technology converge to fuel innovation of early stage technology, we provided a tech preview of AI expert, a generative AI solution that delivers substantial optimizations and cost savings in the design deployment and management of enterprise networking and security.

我們的客戶和合作夥伴也對IQstream 實驗室做出了非常積極的反應，這是一個充滿活力的生態系統，創造力、協作和尖端技術匯聚在一起，推動早期技術的創新。的技術預覽，這是一種生成式AI 解決方案，可提供大量優化和節省企業網路和安全的設計部署和管理成本。

Finally, we announced that we are the first vendor to allow WiFi 6E customers such as the San Francisco Giants, Cedar Fair and BYU. to unlock outdoor stick to kicker, heard spectrum to experience faster speeds, increased range of coverage and expanded capacity for outdoor connectivity.

最後，我們宣布我們是第一個允許 WiFi 6E 客戶使用的供應商，例如舊金山巨人隊、Cedar Fair 和 BYU。解鎖戶外堅持，聆聽頻譜體驗更快的速度、更大的覆蓋範圍和更大的戶外連接容量。

There was a lot of discussion that Ken asked about industry M&A and the disruption that it's causing.

肯詢問了有關行業併購及其造成的破壞的大量討論。

We feel that lots of questions about Cisco, diversifying away from network and customers, fatigue with the cost complexity and lack of flexibility because we're doing business with them.

我們感到很多關於思科的問題，遠離網路和客戶的多元化，對成本複雜性的疲勞以及缺乏靈活性，因為我們正在與他們做生意。

As it relates to H. E's acquisition of Juniper, most questions focused on risk and how to protect their technology investments.

由於涉及 H.E 收購瞻博網絡，大多數問題都集中在風險以及如何保護其技術投資。

Customers are worried and don't have a clear view of technology roadmaps for the potential negative impact the integration.

客戶很擔心，並且對整合可能產生的負面影響的技術路線圖沒有清晰的認識。

They have down the line.

他們已經下線了。

We feel confident Extreme's pure-play focus on secure network and finding new ways to deliver better outcomes for our customers will remain a competitive advantage.

我們相信，Extreme 專注於安全網路並尋找新方法為我們的客戶提供更好的結果將繼續保持競爭優勢。

We were named as a leader in the Gartner MQ for the sixth consecutive time.

我們連續第六次被評為 Gartner MQ 的領導者。

Once again, Cisco move down and vision and execution and customers are taking notice.

思科再次下滑，願景、執行力和客戶都注意到了。

Turning to new wins.

轉向新的勝利。

We had a strong quarter in higher education.

我們的高等教育季度表現強勁。

We won Washington University and St. Louis, one of the country's top universities, which selected Extreme to modernize its networking infrastructure, displacing Cisco IQstream fabric solutions will help the university create a simple, scalable and secure network across the campus and with ExtremeCloud IQ wash, you will be able to manage its entire network, including third party applications.

我們贏得了美國頂尖大學之一的華盛頓大學和聖路易斯大學的青睞，它們選擇Extreme 對其網路基礎設施進行現代化改造，取代Cisco IQstream 交換矩陣解決方案將幫助該大學在整個校園內創建一個簡單、可擴展且安全的網絡，並使用ExtremeCloud IQ 清洗，您將能夠管理其整個網絡，包括第三方應用程式。

Third party devices in Amea spending remained challenging across many of our largest verticals and revenue is impacted by channel digestion.

Amea 中的第三方設備支出在我們許多最大的垂直行業中仍然具有挑戰性，並且收入受到通路消化的影響。

However, we continued our success in winning international sports venues such as pollution Dortmund, which one of the largest football clubs in Germany.

然而，我們繼續成功地贏得了國際體育場館的勝利，例如污染多特蒙德，這是德國最大的足球俱樂部之一。

They're deploying WiFi 6E fabric, IQstream analytics across the stadium to create next-gen experiences like NC concessions, AR/VR and biometrics.

他們正在整個體育場部署 WiFi 6E 結構、IQstream 分析，以創建 NC 特許經營、AR/VR 和生物識別等下一代體驗。

In Asia Pacific, booking trends have been stable for a number of quarters.

在亞太地區，預訂趨勢已連續幾季保持穩定。

And we're seeing success, particularly in the hospitality sector, where we've added multiple new logos across Asia in the quarter.

我們看到了成功，特別是在酒店業，本季度我們在亞洲添加了多個新徽標。

We also displaced Cisco at several major customers, including Korean Airlines, a 30-year customer.

我們還在幾個主要客戶中取代了思科，其中包括 30 年的客戶大韓航空。

We're deploying across 250 of their sites worldwide, including their global headquarters in Seoul.

我們正在其全球 250 個站點進行部署，其中包括位於首爾的全球總部。

Our new go-to-market initiatives are helping us grow and gain share as well.

我們新的市場進入計劃也正在幫助我們成長並獲得份額。

We grew our MSP. partner base to 23 during the quarter with many more in queue.

我們發展了 MSP。本季合作夥伴數量已增至 23 家，還有更多合作夥伴正在排隊。

The vast majority of MS/B revenue is net new logos our MSP footprint is expanding as partners appreciate the simplicity of one cloud, the flexibility of our unified hardware and our unique consumption billing model.

MS/B 收入的絕大多數是淨新徽標，隨著合作夥伴欣賞單一雲端的簡單性、我們統一硬體的靈活性以及我們獨特的消費計費模型，我們的 MSP 足跡正在擴大。

We make it simple for these service providers to deliver seamless high quality networking experiences as we contemplate our recovery.

當我們考慮恢復時，我們使這些服務提供者能夠輕鬆地提供無縫的高品質網路體驗。

We're encouraged by our funnel and believe that customer's demand for our solutions will continue to improve, and we expect a resumption of growth to follow into fiscal 25.

我們對我們的管道感到鼓舞，並相信客戶對我們解決方案的需求將繼續改善，我們預計 25 財年將恢復成長。

And with that, I'd like to turn the call over to our CFO, Kevin rose to walk us through the results and guidance.

說到這裡，我想將電話轉給我們的財務官，凱文站起來向我們介紹結果和指導。

Tim, are you there?

提姆，你在嗎？

Sorry about that.

對於那個很抱歉。

I was on mute.

我當時處於靜音狀態。

I apologize because I mean our eyes.

我道歉，因為我指的是我們的眼睛。

So thanks that sorry about that.

謝謝，對此感到抱歉。

And let me let me get into our results.

讓我來談談我們的結果。

So our results were in line and slightly ahead of our outlook as we expected entering the quarter, we worked through a significant amount of channel and customer digestion the average overall channel inventory reduction was at the high end of our 40 to $50 million estimates.

因此，我們的結果與我們預期的預期一致，並略超前於進入本季度的預期，我們通過大量渠道和客戶消化進行了工作，平均整體渠道庫存減少量達到了我們預期的40 至5000 萬美元的上限。

So we believe this will position us for a return to normalized growth which will be better aligned to customer demand trends.

因此，我們相信這將使我們恢復正常成長，從而更好地適應客戶需求趨勢。

We also took proactive action at the end of the quarter to rightsize our costs, which will enable us to generate profitability again, while continuing to support our strategic and product initiatives.

我們也在本季末採取了積極行動來調整成本，這將使我們能夠再次產生盈利，同時繼續支持我們的策略和產品計劃。

Let me get into some of the numbers.

讓我來談談一些數字。

Revenue of $211 million declined sequentially during the quarter, primarily due to the market dynamics impacting our industry and was slightly above our forecast.

本季營收季減 2.11 億美元，主要是因為市場動態影響了我們的產業，略高於我們的預測。

Product revenue of $106 million reflected the previously mentioned channel digestion, along with elongated sales cycles, which are also impacting the in the networking industry.

1.06 億美元的產品收入反映了前面提到的通路消化以及銷售週期延長，這也對網路產業產生了影響。

These trends are relatively consistent across both switching and wireless products.

這些趨勢在交換和無線產品中相對一致。

Pricing discount rates on product orders was largely intact with prior quarters.

產品訂單的定價折扣率與前幾季基本保持不變。

And our product backlog was once again at a normalized level and within our expected range.

我們的產品積壓再次達到正常水平並在我們的預期範圍內。

Looking back over the last several quarters, our subscription revenue has been a great success story for us since the acquisition of Aerohive in 2019, we've gone from annualized revenue of $40 million to $152 million per year as our business has shifted to cloud management.

回顧過去幾個季度，自 2019 年收購 Aerohive 以來，我們的訂閱收入一直是一個巨大的成功故事，隨著我們的業務轉向雲端管理，我們的年化收入從 4000 萬美元增加到了 1.52 億美元。

It's important to take both product trends and our recurring subscription and support revenue into account as this is what customers are buying from extreme.

重要的是要考慮產品趨勢以及我們的經常性訂閱和支援收入，因為這是客戶從極端購買的產品。

We expect the strong growth of SaaS ARR to continue overall bookings and most notably product bookings were well above our revenue in the quarter.

我們預計 SaaS ARR 的強勁成長將繼續推動整體預訂，最值得注意的是產品預訂遠高於我們本季的營收。

On a vertical basis, our education business grew double digits year over year, led by higher ed and our K through 12 business was in line with our expectations.

在垂直基礎上，我們的教育業務以高等教育為主導，同比增長兩位數，我們的 K 至 12 年級業務符合我們的預期。

On a year over year basis, healthcare was up double digits and we saw sequential growth in retail service provider and sports and entertainment, all of which grew double digits.

與去年同期相比，醫療保健成長了兩位數，我們看到零售服務提供者以及體育和娛樂領域的連續成長，所有這些都成長了兩位數。

Even in this challenging environment, IQstream is still gaining share by attracting and winning new customers.

即使在這個充滿挑戰的環境中，IQstream 仍然透過吸引和贏得新客戶來獲得份額。

Ces ARR and recurring revenue was once again a bright spot in the quarter, up 38% year over year, driven by the strength of our renewals and our ACT and activations of previous previously shipped product subscription deferred revenue was up 29% year over year to 258 million.

Ces ARR 和經常性收入再次成為本季度的亮點，同比增長 38%，這得益於我們的續訂和 ACT 以及之前發貨產品訂閱遞延收入的激活，同比增長 29% 2.58億。

Total subscription and support revenue was 105 million, up 14% year over year.

訂閱和支援總收入為 1.05 億，年增 14%。

This growth was largely driven by the strength of cloud subscription revenue.

這一成長主要是由雲端訂閱收入的強勁推動的。

Based on our current outlook, we expect recurring revenue to account for approximately 35% of full year fiscal 2024 revenue.

根據我們目前的展望，我們預計經常性收入將佔 2024 財年全年營收的約 35%。

The growth of cloud subscriptions and support drove the total deferred revenue to $558 million, up 20% year over year.

雲端訂閱和支援的成長推動遞延收入總額達到 5.58 億美元，年增 20%。

Gross margin was 57.6%, down 490 basis points from the prior quarter and 150 basis points compared to a year ago quarter.

毛利率為 57.6%，較上一季下降 490 個基點，較去年同期下降 150 個基點。

Our fixed overhead costs were impacted by reduced product revenue, and we incurred about an additional 7.5 million of excess raw material costs in the quarter.

我們的固定管理費用受到產品收入減少的影響，本季我們額外產生了約 750 萬美元的超額原物料成本。

This occurred as we transitioned one of our primary original design manufacturers out of China and into Vietnam.

當我們將主要的原始設計製造商之一從中國轉移到越南時，就發生了這種情況。

Without this cost, we would have achieved 61.2% margins in the quarter.

如果沒有這筆成本，我們本季的利潤率將達到 61.2%。

We currently expect gross margins to recover back above 60% in the fourth quarter.

我們目前預計第四季毛利率將恢復到60%以上。

Our third quarter operating expenses were 147 million, up 3% from the year-ago quarter.

我們第三季的營運費用為1.47億美元，比去年同期成長3%。

During the quarter, we did take action to optimize our expense structure to the level of revenue we expect to achieve, including getting back to operating profitability in the fourth quarter and into fiscal year 2025.

在本季度，我們確實採取了行動，優化我們的費用結構，以達到我們預期實現的收入水平，包括在第四季度和 2025 財年恢復營業利潤。

On a run rate basis, we took over our approximately 35 to $40 million of annualized expenses, which will help us drive operating leverage as revenue recovers.

以運行率計算，我們接管了約 3500 至 4000 萬美元的年化費用，這將有助於我們在收入恢復時提高營運槓桿。

The operating margin in the third quarter was a loss of 12.2%, down from a profit margin of 14.8% last quarter and from a profit margin of 15.6% in the year-ago quarter.

第三季營業利益率虧損12.2%，低於上季14.8%的利潤率和去年同期15.6%的利潤率。

All in third quarter non-GAAP loss per share was $0.19 and in line with our outlook.

第三季非 GAAP 每股虧損為 0.19 美元，符合我們的預期。

This compares to earnings per share of $0.24 in the second quarter in earnings per share of $0.29 in the year-ago quarter.

相比之下，第二季每股收益為 0.24 美元，去年同期每股收益為 0.29 美元。

We ended the quarter with 151 million of cash and net debt of $42 million.

本季結束時，我們的現金為 1.51 億美元，淨債務為 4,200 萬美元。

The $74 million usage of free cash flow in the quarter was due to the lower revenue and use of working capital for purchases of raw materials and finished goods inventory based on prior year purchase commitments, we expect a recovery in cash flow as revenue recovers in the fourth quarter and component purchases become more balanced with normalized sell-through rates.

本季自由現金流使用量為 7,400 萬美元，原因是收入和根據上一年採購承諾採購原材料和製成品庫存的營運資金使用量減少，我們預計隨著收入的恢復，現金流量將恢復第四季度和零件採購隨著標準化的售出率變得更加平衡。

Now turning to guidance heading into the fourth quarter, we are expecting improved sequential revenue growth based in our funnel and the seasonality of our business led by our education vertical.

現在轉向第四季度的指導，我們預計基於我們的漏斗和由教育垂直領域主導的業務季節性，我們預計收入連續成長會有所改善。

We believe the recovery in revenue and earnings will also drive a recovery in cash flow.

我們相信收入和獲利的復甦也將推動現金流的復甦。

However, we are taking a cautious tone to guidance at this time.

然而，我們目前對指導採取謹慎的態度。

For the fourth quarter, we expect guidance as follows revenue to be in a range of 250 million to $260 million, gross margin to be in a range of 61.6% to 63.6%.

對於第四季度，我們預計營收將在 2.5 億至 2.6 億美元之間，毛利率將在 61.6% 至 63.6% 之間。

Operating margin to be in a range of 9% to 11.5% and earnings per share to be in a range of 11 to $0.15.

營業利潤率在 9% 至 11.5% 之間，每股收益在 11 至 0.15 美元之間。

That's based on fully diluted share count to be expected around 131 million shares for the full year 2024, we expect as follows revenue to be in a range of 1,000,000,110.5 million, 1 billion, 120.5 billion non-GAAP gross margin to be in a range of 60.9% to 61.4% operating margin to be in a range of 9.3% to 9.9% and earnings per share to be in a range of $0.51 to $0.55.

這是基於預計 2024 年全年完全攤薄後的股數約為 1.31 億股，我們預計收入將在 1,000,000,110.5 百萬股、10 億股、1205 億股之間，非 GAAP 毛利率將在營業利潤率在60.9% 至61.4% 之間，介於9.3% 至9.9% 之間，每股收益在0.51 美元至0.55 美元之間。

Fully diluted share count is expected to be around 131 to 132 million shares.

完全攤薄後的股份數量預計約為 13.1 至 1.32 億股。

And with that, I'll now turn it over to the operator to begin the Q&A session.

就這樣，我現在將其移交給操作員以開始問答環節。

Certainly.

當然。

And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone.

提醒一下，女士們先生們，如果您此時確實有疑問，請在電話上按星號一一。

Our first question comes from the line, Alex Henderson from Needham.

我們的第一個問題來自於 Needham 的 Alex Henderson。

Your question, please, guys.

各位，請提出你的問題。

So I was hoping you could talk a little bit about what you think the normalized revenue base for the Company is what the companies longer sustainable growth rate is.

因此，我希望您能談談您認為公司的正常化收入基礎是什麼，公司的長期可持續成長率是多少。

And once you come out of this correction where you think you can get your margins to you talked about 64% to 66% gross margins in the past.

一旦你走出這個調整，你認為你可以得到你過去談到的 64% 到 66% 的毛利率。

Is that Tina, can you give us just some sort of some guidelines on what a normalized base, it should look like.

是蒂娜嗎，你能給我們一些關於標準化基礎應該是什麼樣子的指導方針嗎？

Hey, Alex?

嘿，亞歷克斯？

Yes, Alex, this is Ed. Let me let me jump in and then Kevin, I'll let you if you come in behind me as far as the model is concerned, Alex, yes, we're still seeing it sluggishness macros lagging to sluggishness in Europe.

是的，亞歷克斯，這是艾德。讓我讓我跳進去，然後凱文，如果你在模型方面落後於我，我會讓你，亞歷克斯，是的，我們仍然看到它的低迷宏觀滯後於歐洲的低迷。

And then you'll note that we had a lower volume of large deals this past quarter at 28, which is a low for us.

然後您會注意到，上個季度我們的大宗交易數量有所減少，為 28 筆，這對我們來說是一個低水平。

And we're seeing elongated sales cycles in some of our larger projects.

我們發現一些大型專案的銷售週期延長了。

So when when when this is normalized and when we look at a level where we are, we feel is achievable in this market with the resources that we have on our team and you're looking at moving up closer to $300 million a quarter and revenue from from where we are today.

因此，當這種情況正常化時，當我們審視我們所處的水平時，我們認為憑藉我們團隊擁有的資源，在這個市場上是可以實現的，並且您希望每個季度的收入和收入接近3億美元從我們今天所處的位置開始。

So we are we see a lot of room for growth.

所以我們看到了很大的成長空間。

And the other comment that I'll make is that market conditions we believe are going to help us over the next 12 months given what's going on with the competitive landscape right now, there's a lot of chatter and there's a lot of noise in the partner channel community as well as with end users around concerns about technology decisions that they need to make.

我要說的另一條評論是，考慮到目前的競爭格局，我們相信市場狀況將在未來 12 個月內對我們有所幫助，合作夥伴中有很多閒聊和噪音。做出的技術決策的擔憂。

And if you're a partner that you want to bank your business on.

如果您是想要為您的業務提供資金支持的合作夥伴。

As a result, we think we're going to start to see more opportunities coming to IQstream is is in a way a safe haven for technology decisions that are future forward.

因此，我們認為我們將開始看到更多機會來到 IQstream，在某種程度上，IQstream 是未來技術決策的安全港。

So this was we heard this loud and clear, it will take time for new partners to establish funnel and establish business with extreme and ramp.

因此，我們清楚地聽到了這一點，新合作夥伴需要時間來建立管道並建立極端和斜坡業務。

And the same thing is true with partners, but we've we will have very specific motions to aggressively go after this against both sets of our larger competitors.

合作夥伴也是如此，但我們將採取非常具體的動議，積極應對這兩個較大的競爭對手。

I think it creates a unique market opportunity.

我認為這創造了一個獨特的市場機會。

Kevin, do you want to do you want to follow up with more specifics in terms of margins and the modeling questions?

凱文，您想跟進有關利潤和建模問題的更多細節嗎？

Yes.

是的。

I mean, I think I think you're accurate yet in terms of what we're seeing as opportunities for growth coming out of of that, what's the new normal look like, right coming out of the I'll call it field the cycle that we're in right now and absorption, et cetera.

我的意思是，我認為你在我們所看到的成長機會方面是準確的，新常態是什麼樣的，我稱之為領域週期我們現在正處於專注狀態，等等。

I would think that we the new normal should be above $300 million in revenue is what we are shooting for and obviously growth above.

我認為我們的新常態應該是營收超過 3 億美元，這才是我們的目標，而且顯然成長高於 3 億美元。

And beyond that, the market opportunity is there for us.

除此之外，我們還有市場機會。

We are taking share and you could see with Korean Airlines and others that are 30-year customers of Cisco that are moving and coming over to us as we continue to build on our software story here, Alex, I think that's going to bode well for us, especially as we add in more security, more AI.

我們正在獲取份額，您可以看到大韓航空和其他思科 30 年的客戶正在轉向我們，因為我們在這裡繼續建立我們的軟體故事，亞歷克斯，我認為這對我們來說是個好兆頭我們，尤其是當我們增加更多的安全性、更多的人工智慧時。

All of that, I think is going to be and we heard that loud and clear at our Connect conference that people were excited about our vision for what the product enhancements are going to be in the future.

我認為這一切都會發生，我們在 Connect 會議上清楚地聽到，人們對我們對未來產品增強的願景感到興奮。

And more and more of these customers or prospects are saying they want to lean in our way.

越來越多的客戶或潛在客戶表示他們希望採用我們的方式。

So we got to get through this cycle with the market.

所以我們必須和市場一起度過這個週期。

But but in general, in the future, like as things come back, we think we're very well positioned for growth.

但總的來說，在未來，隨著事情的恢復，我們認為我們已經做好了成長的準備。

So the question was asked around the gross margin in that 64, 66 still attainable.

所以問題是圍繞毛利率提出的，64、66 仍然可以達到。

And when do you think you'll come out of this cycle?

你認為什麼時候才能擺脫這個循環？

Do you think you're all the way through the year calendar year?

你認為你能順利度過這一年嗎？

Or do you think it can happen before?

或者你認為這可能發生在以前嗎？

Yes.

是的。

So 64 to 66, when you look at our guidance for for Q4, right?

所以，當您查看我們對第四季度的指導時，是 64 到 66，對吧？

We're at 61.6 to 63.6, and we're really touching at the high end of our guidance at 64% range.

我們處於 61.6 至 63.6 之間，並且確實觸及了 64% 指導範圍的上限。

That you just talked about.

你剛才談到的。

So you know, we described that as a longer kind of three year vision for where we're going to get the 64 to 66.

所以你知道，我們將其描述為一個更長的三年願景，我們將實現 64 到 66。

But yes, we are absolutely still envisioning that be our target range for gross margin.

但是，是的，我們絕對仍然設想這是我們的毛利率目標範圍。

Yes, Alex, it is as far as the timing of the recovery is concerned, yes, I think it's going to depend a lot on the the spending environment in Amea and then just the timing and our ability to close on on the pipeline of opportunities that we already have.

是的，亞歷克斯，就復甦的時間而言，是的，我認為這將在很大程度上取決於 Amea 的支出環境，然後取決於時機和我們抓住機會的能力我們已經擁有了。

I would say we have visibility.

我想說我們有可見性。

We have a very healthy funnel of opportunities.

我們有一個非常健康的機會管道。

The question on that funnel, it is the timing.

漏斗上的問題是時機。

And then we have a, I would say, a somewhat gun-shy team and Europe because I we've been we've been burned several quarters by expecting that spending cycles to come back and we just haven't seen it come back as quickly as we thought.

然後，我想說，我們有一個有點膽怯的團隊和歐洲，因為我們已經好幾個季度因為預期支出週期會回來而感到沮喪，但我們只是沒有看到它回來正如我們所想的那樣快。

So net-net, it's difficult for us to make that call.

因此，我們很難做出這樣的決定。

We we suspect that we'll start to see signs of this this quarter and into next quarter.

我們懷疑我們將在本季和下季開始看到這種跡象。

I would say with a lot more confidence in December.

我想說十二月會更有信心。

That's helpful.

這很有幫助。

Thank you.

謝謝。

And our next question comes from the line of Eric Martinuzzi from Lake Street Capital Markets.

我們的下一個問題來自 Lake Street Capital Markets 的 Eric Martinuzzi。

Your question, please.

請提出你的問題。

Yes, I wanted to take a look at the operating expense expectation for Q4.

是的，我想看一下第四季的營運費用預期。

I know you took actions kind of mid-quarter here in Q three, and I think I've got the number right OpEx in Q3 at $147 million.

我知道你們在第三季中期採取了行動，我想我得到的正確數字是第三季的營運支出，即 1.47 億美元。

What's the expectation for Q4?

Q4的預期是什麼？

Yes.

是的。

So right now, we're expecting OpEx in Q4.

所以現在，我們預計第四季的營運支出。

I'm just looking for on here.

我只是在這裡尋找。

It's at one 33 is what we're expecting that to be, Eric.

這是我們所期望的 1 點 33 分，艾瑞克。

Okay.

好的。

And I'm assuming the bulk of the <unk> kind of restructuring effort there was around the sales and marketing that correct.

我假設的大部分重組工作是正確的。

And we looked at all spend, to be honest, we Eric and obviously most we looked at program spend first and foremost because we value all of our extreme employees you still have to make adjustments across the board.

我們考慮了所有支出，說實話，我們埃里克和顯然我們大多數人首先考慮的是計劃支出，因為我們重視所有極端員工，但您仍然需要全面進行調整。

But we really I would say we looked at it from a network design perspective and optimize the company's structure that way as opposed to just going in and taking out certain functions.

但我們真的會說，我們從網頁設計的角度來看待它，並以這種方式優化公司的結構，而不是只是進入並刪除某些功能。

We looked at how do we how do we reimagine our go to market, but also R & D deal focus areas and in across-the-board other areas as well.

我們研究如何重新構想我們的市場走向，以及研發交易重點領域以及全面的其他領域。

So I would say we optimize across the entire company to get there.

所以我想說，為了實現這一目標，我們對整個公司進行了優化。

Okay.

好的。

I think I'm going to say Kevin and our guide, Eric, we we we knew that we were going to be taking expenses out of the business.

我想我會說凱文和我們的導遊埃里克，我們知道我們將從業務中扣除費用。

So in our guide, that was that was part of the original guide.

所以在我們的指南中，這就是原始指南的一部分。

Yes, yes, I understand the net new logo growth growth, so double digits in Q three, that kind of was a pleasant surprise for me.

是的，是的，我了解新徽標的淨增長，因此第三季度達到兩位數，這對我來說是一個驚喜。

Given the overall macro environment still being challenging, what do you think was the key driver behind the new logo growth?

鑑於整體宏觀環境仍然充滿挑戰，您認為新標誌成長背後的關鍵驅動力是什麼？

Yes, we were encouraged because what we're seeing and I mentioned in my comments that we're moving upmarket and we see a return to health as we get back to this kind of you've called your 35 to 40 plus million dollar plus deals in a quarter.

是的，我們很受鼓舞，因為我們所看到的，我在評論中提到，我們正在向高端市場發展，當我們回到這種你稱之為35 至40 美元以上的狀態時，我們看到了健康的回歸一個季度內的交易。

This quarter was unusually low how ever.

然而，本季的業績卻異常低迷。

And we had a handful of really nice wins in the quarter that you have, including eight digit, an eight digit win and some some large seven digit wins that that dumb that that created it really nice new logo wins, and that's what sort of inflated the new logo amounts in terms of the dollar volume amount of new logo business we have a lot of that in our funnel as well, which is what we're excited about.

我們在本季度取得了一些非常好的勝利，包括八位數、八位數的勝利和一些大的七位數的勝利，那些愚蠢的創造了非常好的新標誌的勝利，這就是那種膨脹的勝利新徽標的金額以新徽標業務的美元數量計算，我們的漏斗中也有很多這樣的內容，這正是我們感到興奮的地方。

That said, when we're calling Q4, we don't want to rely on large binary deals that they could move either way.

也就是說，當我們調用第四季時，我們不想依賴大型二元交易，因為它們可以以任何方式移動。

We feel like we're in a stronger competitive position with some of the logos we talked about at Connect.

我們覺得我們在 Connect 上討論的一些標誌處於更強大的競爭地位。

We had Clover up on stage saying that they are very experienced with extreme far exceeded expectations.

我們讓 Clover 上台說他們經驗豐富，遠遠超出了我們的預期。

And there's a lot of new business opportunities, obviously with the world's largest grocer, Korean Air, major airlines after 30 years with Cisco kind of set up and ready for a change.

而且還有很多新的商機，顯然是世界上最大的雜貨商大韓航空，以及在思科成立 30 年後並準備進行變革的主要航空公司。

They made the trip and flew all the way from Seoul to be their big endorsement.

他們專程從首爾飛來，就是為了給他們最大的代言。

That means a lot of those markets, a Wash U prestigious university, making the move really intrigued by fabric in our security story.

這意味著許多這樣的市場，例如華盛頓大學的一所著名大學，使得這一舉動對我們安全故事中的結構非常感興趣。

And so these are just some of the examples of of large wins, important logos important reference accounts, we are winning and we won them in the quarter.

因此，這些只是重大勝利、重要徽標、重要參考帳戶的一些例子，我們正在獲勝，並且我們在本季度贏得了它們。

We don't necessarily have the magnitude of those deals in Q4 to call, which is why when you look at the Q3 to Q4, you might be wondering Okay, what you own or why am I not seeing more growth?

我們不一定有第四季度這些交易的規模可以預測，這就是為什麼當您查看第三季度到第四季度時，您可能想知道您擁有什麼，或者為什麼我沒有看到更多增長？

We want to be careful about calling the larger deals, but the fact of the matter is we are we are more competitive and we are winning them and success begets success in this marketplace.

我們在進行較大規模的交易時要謹慎，但事實是我們更具競爭力，我們正在贏得這些交易，並且在這個市場上，成功會帶來成功。

So that's that's what's giving us confidence and with a few more of these things that should really strengthen the our position, our confidence we're calling a stronger 25.

這就是給我們信心的原因，再加上更多這些東西，應該會真正加強我們的地位，我們的信心我們稱之為更強大的 25 強。

Thank you.

謝謝。

Thank you.

謝謝。

One mobile for our next question and our next question comes from the line of David Vos from UBS.

我們下一個問題的一部手機來自瑞銀 (UBS) 的大衛沃斯 (David Vos)。

Your question, please.

請提出你的問題。

This is Brian in for David.

這是布萊恩代替大衛。

Thanks for taking my question.

感謝您提出我的問題。

So on balance sheet inventory, that increased quarter over quarter to 105 million from 100, 53 million last quarter.

因此，在資產負債表庫存方面，環比增加，從上季度的 100、5300 萬增加到 1.05 億。

Can you discuss how inventory should get worked down given the somewhat soft Q1 revenue guide relative to 90 days ago?

鑑於第一季營收指標相對 90 天前有所疲軟，您能否討論一下應如何降低庫存？

And then I have a follow-up.

然後我有一個後續行動。

Thank you.

謝謝。

Sure, Brian.

當然，布萊恩。

I'll take that one.

我會接受那個。

And so we did we did have a use of cash in the quarter for a building of inventory.

因此，我們確實在本季使用了現金來建立庫存。

You have to realize that, first of all, all of these inventory purchases that are coming in now we're more than a year ago, when does those orders were put in place?

你必須意識到，首先，現在所有這些庫存採購都是一年多前的事了，這些訂單是什麼時候到位的？

And naturally, what we're seeing in the market right now is the slowdown is obviously exacerbating, if you will, the inventory builds.

當然，我們現在在市場上看到的是，經濟放緩顯然加劇了庫存的增加（如果你願意的話）。

There's a positive on that, which is we've bought all this inventory.

這有一個積極的方面，那就是我們已經購買了所有這些庫存。

It's all good inventory that we have on our balance sheet.

我們的資產負債表上都是優質庫存。

We worked down the inventory, the distribution side of things we talked about and we had our inventory that we've now paid for.

我們對庫存、我們所討論的分銷方面進行了研究，我們現在已經支付了庫存。

So that's going to be a cash generation opportunity for us in the future.

因此，這將是我們未來的創收機會。

I would say over the next year.

我想說的是明年。

All of that inventory is good inventory and should work itself into the market over time.

所有這些庫存都是優質庫存，隨著時間的推移，應該會自動進入市場。

We assess our inventory balances every quarter.

我們每季都會評估庫存餘額。

As an example, you saw this quarter we moved one of our ODMs out of China into Vietnam.

舉個例子，您看到本季我們將一個 ODM 從中國轉移到了越南。

They brought the raw inventory that we had there for the raw materials.

他們帶來了我們在那裡的原料庫存。

We ended up taking that out, and that's just because of the movement of the line.

我們最後把它去掉了，這只是因為生產線的移動。

And we were reestablishing that line in Vietnam as we moved out of China, these are materials that we were using for the China market.

當我們離​​開中國時，我們正在越南重建這條生產線，這些是我們用於中國市場的材料。

And so it just didn't make sense because we weren't replacing that line.

所以這沒有意義，因為我們沒有更換那條線。

So we evaluate it every quarter, but right now, yes, we had a build in the inventory, but that's going to generate cash.

因此，我們每個季度都會對其進行評估，但現在，是的，我們建立了庫存，但這將產生現金。

Got it.

知道了。

That's helpful.

這很有幫助。

And then as a follow-up, can you share with us what would be a normal inventory level when product revenue slashed demand normalizes is there a good rule of thumb?

作為後續行動，您能否與我們分享一下，當產品收入大幅下降、需求正常化時，正常的庫存水準是多少，是否有一個好的經驗法則？

Can we think about it as like a percentage of quarterly product revenue?

我們可以將其視為季度產品收入的百分比嗎？

Yes, I mean so we were running, I would say more like $19 million of inventory in the past.

是的，我的意思是，我們過去的庫存量大約是 1900 萬美元。

So we're probably double the size that we would like to be at on a percentage of revenue, 90 into roughly 11 billion, $900 million of product revenue would give you about 10% of the total annual product revenue is just to give you a guidance range from our perspective, you know that will work itself down over the next year.

因此，我們可能會按收入百分比將規模擴大一倍，大約 110 億美元中的 90 倍，9 億美元的產品收入將為您帶來年度產品總收入的約 10%，這只是為了給您一個從我們的角度來看，指導範圍會在明年下降。

As an aside, I would also say in Q4, we expect inventory levels to come down.

順便說一句，我還想說，在第四季度，我們預計庫存水準將會下降。

That's another thing that we're looking at right now I'll take you one moment for our next question, correct.

這是我們現在正在考慮的另一件事，我將花一點時間回答我們的下一個問題，正確的。

And our next question comes from the line of David Kang from B. Riley.

我們的下一個問題來自 B. Riley 的 David Kang。

Your question, please.

請提出你的問題。

Thank you.

謝謝。

Good morning, first question is on seasonality for fiscal first quarter 25.

早上好，第一個問題是關於 25 財年第一季的季節性問題。

I know that's typically a seasonally weak, but any difference this time?

我知道這通常是季節性疲軟，但這次有什麼不同嗎？

Yes, David, I think given where we are in Q4.

是的，大衛，我認為考慮到我們在第四季度的情況。

And given how we're looking to build from Q. three, I don't think we're at a point where we can say that normal seasonality applies just because of the unusual nature of demand and the market environment that we're in today.

考慮到我們希望從第三季度開始構建，我認為我們不能僅僅因為需求的不尋常性質和我們所處的市場環境就說正常的季節性適用。

So whereas normally, I think what you're hitting on is the fact that there's this dip in September and then you were up in December, a dip in March and then up in June.

因此，通常情況下，我認為您發現的事實是，9 月出現下跌，然後在 12 月上漲，3 月下跌，然後在 6 月上漲。

I don't think that the traditional seasonality adjustments will apply.

我認為傳統的季節性調整不適用。

So you're implying that it could be up or even at or at least flat maybe for September from June to September?

所以你的意思是，從 6 月到 9 月，9 月的價格可能會上漲，甚至持平或至少持平？

Yes.

是的。

I think given where we are today, Kevin mentioned that well, I mentioned we have some large deals that are somewhat binary.

我認為考慮到我們今天的處境，凱文提到，我提到我們有一些大交易，但有些是二元的。

And I will say Kevin mentioned before talking about the guidance that we want to, we want to be more cautious and have a more cautious tone.

我想說凱文在談論我們想要的指導之前提到過，我們想要更加謹慎，並且語氣更加謹慎。

And in Q three, we had a number we can argue the bar wasn't that high, but we're on track for hitting a number.

在第三季度，我們有一個數字，我們可以說門檻不是那麼高，但我們有望達到這個數字。

And that's how we want to run the business and how we want to manage expectations where we're going to meet or exceed our guidance.

這就是我們想要經營業務的方式，以及我們想要如何管理期望，以達到或超越我們的指導。

And we've set the table in such a way that way for Q4, I think it's too early to call?

我們已經以這種方式為第四季度做好了準備，我認為現在下結論還為時過早？

I think right now Kevin will get upset with me if I circle in Q1.

我想現在如果我在第一季繞圈，凱文會生我的氣。

But what I would say is I don't think the year that we're not at a point to say we've returned to normalcy and normal seasonality.

但我想說的是，我認為今年我們還沒有到可以說我們已經恢復正常和正常季節性的程度。

Got it live.

直播了。

Okay.

好的。

Okay.

好的。

Man up.

男人起來。

My follow-up question was on bookings.

我的後續問題是關於預訂的。

You said book-to-bill was way over one but just wondering if you can comment on how they compare like maybe sequentially or maybe year over year on the bookings side?

您說預訂到帳單的情況遠遠超出了一個，但只是想知道您是否可以評論它們在預訂方面的比較情況，例如順序比較或逐年比較？

Yes, product bookings, yes, we didn't.

是的，產品預訂，是的，我們沒有。

We didn't describe how it was.

我們沒有描述它是怎樣的。

I would say it's still a challenged environment for bookings.

我想說，預訂環境仍然充滿挑戰。

I would say our overall bookings product and overall bookings was similar to what we had last quarter, slightly down from where it was last quarter, but similar from a from that.

我想說，我們的整體預訂產品和整體預訂量與上季相似，比上季略有下降，但與上季相似。

So I would say that that's good because it gives you some level of stability in what the bookings are going to be quarter to quarter.

所以我想說這很好，因為它可以讓每季的預訂量保持一定程度的穩定性。

That being said, we're really looking for us to have, as I said, Europe come back in other areas of strength to come back in the second half of next year for us to really start to see significant growth.

話雖這麼說，正如我所說，我們確實希望歐洲在其他領域恢復實力，以便在明年下半年恢復，以便我們真正開始看到顯著的成長。

And my last question is on, you know, regarding Europe, I mean, which particular verticals are weak of sounds like education was pretty good in any particular verticals.

我的最後一個問題是，你知道，關於歐洲，我的意思是，哪些特定的垂直領域聽起來很薄弱，例如教育在任何特定的垂直領域都相當不錯。

That's a still weak in Europe?

歐洲還很弱嗎？

Yes, it's mainly the government business.

是的，主要是政府事務。

We look at what our category of SLED, which in Europe, basically, it was including and state and country governments and local governments in education.

讓我們看看我們的 SLED 類別，在歐洲，基本上，它包括教育領域的州和國家政府以及地方政府。

And we've seen a pause in spending there.

我們已經看到那裡的支出暫停了。

And I think, yes, this is where we have a lot of business that that 40% mix was a mix for the entire company.

我認為，是的，這就是我們有很多業務的地方，40% 的混合是整個公司的混合。

When that will come back, we are confident that it's going to come back, but I think more now than ever before.

當這種情況回來時，我們有信心它會回來，但我現在比以往任何時候都想得更多。

And we're seeing them sweating assets and taking more time to move forward with planned network upgrades.

我們看到他們耗費大量資產並花費更多時間來推進計劃的網路升級。

And these are a lot of these are existing customers.

其中很多都是現有客戶。

And yes, that this is where we are, especially in the German market that we call doc, which has been very slow for us when that comes back and we believe it will come back, it's going to bring a lot of momentum to our sales recovery.

是的，這就是我們所處的位置，特別是在我們稱之為doc 的德國市場，當這種情況回來時，這對我們來說非常緩慢，我們相信它會回來，這將為我們的銷售帶來很大的動力恢復。

And then I would I would note that we are looking at quarter over quarter Q4 versus Q3, an increase in our bookings expectations at this point given given the revenue growth.

然後我想指出的是，我們正在考慮第四季度與第三季度的季度環比情況，鑑於收入增長，我們此時的預訂預期有所增加。

Got it.

知道了。

Thank you.

謝謝。

Thank you.

謝謝。

One moment for our next question and our next question comes from the line of Timothy Horan from Oppenheimer.

我們的下一個問題請稍等一下，我們的下一個問題來自奧本海默的蒂莫西·霍蘭（Timothy Horan）。

Your question, please.

請提出你的問題。

Thanks.

謝謝。

So just following up on the on the government side, what percentage of that is do you think is in the office space versus places like railroad stations and other public venues or only because and I've been in a bunch of government buildings lately and like no one's in the office, I mean, they really need to upgrade these WiFi networks anytime soon.

因此，就政府方面而言，您認為辦公空間與火車站和其他公共場所等地方的比例是多少，或者只是因為我最近去過一堆政府大樓，例如辦公室裡沒人，我的意思是，他們確實需要盡快升級這些WiFi 網路。

People are coming in all that much.

人們蜂擁而至。

Yes, Tim, I'm not sure we're able that we're going to be able to pinpoint it.

是的，蒂姆，我不確定我們是否能夠找出它。

And we have that we have a we have a lot of different government agencies, everything from Yes, in in Germany, the Department of IT. for example, we have many defense ministries in different European countries.

我們有許多不同的政府機構，包括德國的資訊科技部。例如，我們在不同的歐洲國家有許多國防部。

And so it's it's very distributed.

所以它是非常分散的。

And the other comment that I'll make is that we also have very distributed channel and our channel partners have long-standing and very strong relationships with all these customers.

我要說的另一件事是，我們也擁有非常分散的管道，我們的通路合作夥伴與所有這些客戶都建立了長期且非常牢固的關係。

And so it is very much of a cyclical business.

因此，它在很大程度上是一個週期性行業。

And when they when they just set when they make the decision to refresh and then when they release the funds, they go through with it.

當他們剛剛決定刷新時，然後當他們釋放資金時，他們就會完成它。

We are not hearing anything that says that what we know is that the cycles have been delayed, but we have not heard anything to the effect of.

我們沒有聽到任何消息表明我們知道周期已被推遲，但我們也沒有聽到任何類似的消息。

We're just not going to do it.

我們只是不會這麼做。

And we think at some point that there will be a return to normalcy, particularly in the government verticals and up.

我們認為在某個時候，情況將會恢復正常，特別是在政府垂直及向上的領域。

Yes.

是的。

Maybe just related to this, I mean, what is the average upgrade cycle historically?

也許與此相關，我的意思是，歷史上的平均升級週期是多少？

And um, you know, I know you're saying it's kind of extended out like it.

嗯，你知道，我知道你是說它有點像這樣延伸。

You don't.

你不知道。

How much can they extend that out of the they really want to.

他們能將其延伸到他們真正想要的範圍之外多少？

And I guess related to this, you know, what impact of 67 having on, you know, those pesky life cycles?

我想與此相關的是，67 對那些討厭的生命週期有什麼影響？

Yes.

是的。

So I think normally in wireless, we would say wireless, you have three to five years switching five to seven years would be the normal life cycles.

所以我認為通常在無線領域，我們會說無線，你有三到五年的時間，五到七年將是正常的生命週期。

Tim, as we think about, sometimes there may be an acceleration or break through WiFi.

提姆，正如我們所想，有時可能會出現加速或突破 WiFi 的情況。

6e was important because it adds six gigahertz spectrum and it's kind of a game changer in terms of what it does and extending the range of WiFi, lower latency, et cetera.

6e 很重要，因為它增加了 6 GHz 頻譜，並且在其功能、擴展 WiFi 範圍、降低延遲等方面改變了遊戲規則。

So WiFi seven will carry that as well.

所以 WiFi 7 也將搭載這項功能。

And then it also depends on devices that are coming into the network and being able to support the bandwidth.

然後，它還取決於進入網路並能夠支援頻寬的設備。

In some cases, you'll see customers, yes, usually customers will fall into that range Yes, if you're getting to five years and on WiFi gear, you're starting to fall behind and it becomes more and more difficult to support the edge devices that are that are coming into your environment.

在某些情況下，您會看到客戶，是的，通常客戶會落入該範圍是的，如果您使用 WiFi 設備達到五年，您就開始落後，並且變得越來越難以支持進入您環境的邊緣設備。

And so especially when we think about the stadium environments, et cetera, that are early adopters and moving quickly into 6E.

尤其是當我們考慮體育場環境等時，它們是早期採用者並迅速進入 6E。

So I think it's fair to go with those ranges.

所以我認為採用這些範圍是公平的。

There are rare examples of people that are just they're still running switches that are 10 years old up, but it's not really prudent to do that because usually those devices are end of life end of support.

極少數人仍然在運行已經使用了 10 年的交換機，但這樣做並不明智，因為通常這些設備已經停止支援。

And if there's a networking issue, it's hard to recover if you have the older, the older gear.

如果發生網路問題，如果您使用的裝置非常舊，則很難恢復。

Great.

偉大的。

Thanks a lot.

多謝。

And just lastly on, are you seeing any change in churn at all in your customer base now, I guess.

最後，我想您現在是否看到客戶群的流失發生了任何變化。

Yes, I think our customer base remains very solid in most of our businesses with our existing customers.

是的，我認為我們的客戶群在我們與現有客戶的大多數業務中仍然非常穩固。

And we see this in terms of subscription renewals, we see it in terms of service rules and and in terms of competitive wins out in the marketplace.

我們從訂閱續訂、服務規則和市場競爭中看到了這一點。

In terms of projects, I would chalk up the current phenomenon more too.

在專案方面，我也會更總結當前的現象。

It delays elongated sales cycles and spending delays more than than competitive.

它比競爭更能延遲延長的銷售週期和支出延遲。

We are a story of the market today is resonating now more than ever before, particularly with the complexity, our lack of flexibility and then the expense of total cost of ownership of dealing with the largest competitor and there's there's there's frustration there.

我們今天的市場故事比以往任何時候都更能引起共鳴，特別是考慮到複雜性、缺乏靈活性，以及​​與最大競爭對手打交道的總擁有成本費用，這讓人感到沮喪。

There's also that frustration of the channel of, for example, in Germany, we've heard that, Dave, it discontinued some of their gold partners who are now looking for a new home, in which case IQstream is the best alternative today.

還有通路的挫折感，例如，在德國，戴夫，我們聽說它停止了一些現在正在尋找新家的黃金合作夥伴，在這種情況下，IQstream 是當今最好的選擇。

And so with our competitive position, given the differentiation of our technology given R-Vision and the integration of security with networking and then the modern networking tools that we're bringing to bear, not just with our purpose-built machine learning AI tools for the network, but also new generative AI capabilities that we just rolled out.

因此，考慮到我們的競爭地位，考慮到我們的技術的差異化、R-Vision 以及安全性與網路的集成，以及我們所採用的現代網路工具，而不僅僅是我們專門構建的機器學習人工智慧工具，網絡，還有我們剛推出的新的生成人工智慧功能。

So I think people are excited about the vision and Extreme is the only pure play networking company.

所以我認為人們對這個願景感到興奮，Extreme 是唯一一家純粹的網路公司。

So as people are contemplating and upgrading to the most modern and future forward networking infrastructure.

因此，人們正在考慮並升級到最現代、最未來的網路基礎設施。

We also have the capability through our cloud to manage our competitors' equipment.

我們也能夠透過雲端來管理競爭對手的設備。

We're the only people that can do that, and we have a very unique value proposition with fabric.

我們是唯一能夠做到這一點的人，我們對布料有非常獨特的價值主張。

So all of these things coming together, our sellers and our partners can position extreme in a way that's stronger today than ever before.

因此，所有這些因素結合在一起，我們的賣家和合作夥伴可以以比以往任何時候都更強大的方式實現極端定位。

And there's disruption in the marketplace.

市場也出現了混亂。

So as the market comes back, we do we are very we're very confident in our position.

因此，隨著市場的復甦，我們對自己的地位非常有信心。

Thank you.

謝謝。

And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone.

提醒一下，女士們先生們，如果您此時確實有疑問，請在電話上按星號一一。

And our next question comes from the line of Christian Schwab from Craig Hallum Capital.

我們的下一個問題來自 Craig Hallum Capital 的 Christian Schwab。

Your question please.

請你提問。

Great.

偉大的。

Thanks, guys.

多謝你們。

So I guess my first question is regarding the excess inventory.

所以我想我的第一個問題是關於庫存過剩的。

Understand the good news of potentially generating cash as that normalizes back to your goal of 90 million on ITO given the state of the market.

了解可能產生現金的好消息，因為考慮到市場狀況，這將回歸到您在 ITO 上獲得 9000 萬美元的目標。

And, you know, is there any risk that that we should assume that you may be more aggressive with pricing strategies to move that inventory a little bit faster?

而且，您知道，我們是否應該假設您可能會採取更積極的定價策略以更快地移動庫存，這是否有任何風險？

Christian?

基督教？

Yes, I'll cover that.

是的，我會介紹這一點。

What I would I would say couple of things.

我想說幾件事。

One I said in my prepared remarks that so far we are holding price as a company, which is good through Q3.

我在準備好的發言中說過，到目前為止，我們公司的股價一直保持不變，這在整個第三季都表現良好。

We are also hearing and seeing in market that some of our competitors with excess inventory themselves are starting to get discount more heavily.

我們還在市場上聽到和看到，一些庫存過剩的競爭對手開始大幅折扣。

And so we have to evaluate that on an ongoing basis.

因此，我們必須持續評估這一點。

So we know how we are doing versus day.

所以我們知道我們每天的表現如何。

We're typically 10% to 15% cheaper than Cisco in the first place.

首先，我們通常比思科便宜 10% 到 15%。

So they do discount more.

所以他們確實打折更多。

It's easy to discount a lot more in order to be at our pricing.

為了達到我們的定價，很容易打更多折扣。

So that tends to help us being slightly lower than what they are already.

因此，這往往有助於我們比他們已經達到的水平略低一些。

But that being said, you know, we evaluate on a quarter-to-quarter basis.

但話雖這麼說，你知道，我們是按季度進行評估的。

The key here is going to be like how much is WiFi seven adopted six e. we still have some WiFi six in place, but we do believe that we can move that inventory over time.

這裡的關鍵在於WiFi 7在多大程度上採用了6 e。我們仍然有一些 WiFi 6，但我們相信隨著時間的推移，我們可以轉移這些庫存。

And that's what we evaluated on a quarter-to-quarter basis.

這就是我們按季度進行的評估。

And how much WiFi six inventory, do you have is that a material amount?

還有多少 WiFi 6 庫存，你有這個數量嗎？

Is that, you know, $20 million worth or is it materially less than that now I think is a tickets that are less on?

你知道，那是價值 2000 萬美元，還是比現在我認為的門票少很多？

It's not I would say it's not a huge amount of the one 85 Ticketmaster.

我想說的是，這對一張 85 Ticketmaster 來說並不是一個巨大的數字。

Okay, perfect.

好的，完美。

And then on the new, I guess, to Mr. Henderson's question on, I guess the new aspirational near term, the revenue target is $1.2 billion kind of run rate, 300 million a quarter.

然後，關於新的，我想，對於亨德森先生的問題，我想新的近期目標，收入目標是 12 億美元的運行率，即每季 3 億美元。

They do that, right.

他們就是這麼做的，對吧。

So you know, 25, we're still moving through cautious spending and elongated sales cycle, Cisco pricing, competitiveness, blah-blah-blah channel, trying to figure out which products they want to sell.

所以你知道，25 歲，我們仍在經歷謹慎的支出和延長的銷售週期、思科定價、競爭力、等等等等管道，試圖找出他們想要銷售哪些產品。

So should we should kind of assume in fiscal year 26, you know, as you know, our $1.2 billion plus goal depending on market conditions.

因此，我們應該假設在第 26 財年，您知道，我們的目標是 12 億美元以上，具體取決於市場狀況。

Is that fair on fiscal 26, I think that's big.

我認為 26 財年的情況公平嗎？

Yes.

是的。

I mean, obviously, there's a lot of efforts in terms of what is going to happen from a market place perspective.

我的意思是，顯然，從市場角度來看，我們已經做了許多努力。

And when will it come back on is the big question, right?

它什麼時候會回來是個大問題，對吧？

The channel digestion activity in that cycle and does that end in this calendar year and then that generates a bit more positive tailwind for the entire industry coming into January of 2026 and into our fiscal year.

該週期中的通路消化活動將在本日曆年結束，然後為進入 2026 年 1 月和我們財年的整個行業帶來更多積極的推動力。

I personally think that there are still a couple of quarters, at least if not a couple maybe a few quarters even through the end of the year here in order to get back to normal.

我個人認為，即使不是幾個季度，甚至到今年年底，至少還有幾個季度才能恢復正常。

And then once we get back to normal, we should start to see us getting into the yes, $300 million range on ITO as a company at that point.

然後，一旦我們恢復正常，我們應該開始看到我們作為一家公司的 ITO 進入了 3 億美元的範圍。

Obviously, at that point, we'll start to get some normalized seasonality from a Q. one Q. three being our lower quarters in Q2, Q4 being our higher quarters.

顯然，到那時，我們將開始從第二季的較低季、第四季的較高季中獲得一些標準化的季節性。

And some of you will have why contraction and expansion in this quarter is once we get back to the new normal, but we think that's going to be, you know, a few quarters.

你們中的一些人會明白為什麼一旦我們回到新常態，本季就會出現收縮和擴張，但我們認為這將是，你知道，幾個季度的時間。

And great.

很棒。

And then my last question is, should we assume the 135 million plus or minus of OpEx run rate is the appropriate run rate.

我的最後一個問題是，我們是否應該假設 1.35 億加或減的 OpEx 運行率是合適的運行率。

And I forget exactly how and where to bid.

我完全忘記瞭如何以及在哪裡投標。

But on the two to support and drive or recovery to 300 million of $1.2 billion in revenue.

但靠兩人的支持與帶動，還是恢復了3億美元的12億美元收入。

Is that the right OpEx number?

這是正確的營運支出數字嗎？

We should be assuming that when we do get there, you'll still be running that plus or minus?

我們應該假設，當我們到達那裡時，您仍然會運行該加號或減號？

Yes.

是的。

I mean, I think I mean so I think that what we're looking at in Q4, right?

我的意思是，我想我的意思是我們在第四季看到的，對嗎？

It's just a pocket in time and there are other quarters that have, for instance, the other events and then that will make that OpEx you kind of ebb and flow.

這只是一小段時間，還有其他方面，例如，其他事件，然後這將使您的營運支出有所起伏。

We will have, for instance, you don't merit increases coming in at some point in the future and some other expenses that come into the future.

例如，我們將擁有，你不值得在未來的某個時候增加工資，以及未來的一些其他費用。

But for now, I would say that's the expected run rate for the current quarter.

但就目前而言，我想說這是本季的預期運行率。

Okay.

好的。

Fantastic.

極好的。

Thank you.

謝謝。

Thank you.

謝謝。

This does conclude the question and answer session of today's program.

今天節目的問答環節到此結束。

I'd like to hand the program back to Ed Meyercord for any further remarks.

我想將程序交還給埃德·邁耶科德（Ed Meyercord）以供進一步評論。

Okay.

好的。

Thank you.

謝謝。

And now we appreciate all the questions and the time and interest in IQstream for everybody participating in the call.

現在，我們感謝參與電話會議的每個人提出的所有問題以及對 IQstream 的時間和興趣。

I also want to shout out to our we have a lot of employees joining in here, customers and partners.

我還想向我們大聲疾呼，我們有很多員工、客戶和合作夥伴加入。

I'm for all of the work and especially the engagement last week and connect.

我支持所有的工作，尤其是上週的參與和聯繫。

And we are going through a challenging period here we are in terms of the rebound, I would say we're excited about rebounding and I would say the return to normalcy in the industry and our and our position and what we're going to be able to do so.

我們正在經歷一個充滿挑戰的時期，就反彈而言，我想說我們對反彈感到興奮，我想說的是行業恢復正常、我們的地位以及我們將要成為的樣子能夠這樣做。

Thank you all.

謝謝你們。

Thank you for a Thanks for participating and Doug look forward to seeing you on the road.

感謝您的參與，道格期待在路上見到您。

Thank you.

謝謝。

Ladies and gentlemen, for your participation in today's conference.

女士們、先生們，感謝你們參加今天的會議。

This does conclude the program.

這確實結束了該程式。

You may now disconnect.

您現在可以斷開連線。

Good day.

再會。