康寧 (GLW) 2015 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Corning Incorporated quarter one 2015 earning results.

各位女士、先生，感謝您耐心等候。歡迎參加康寧公司2015年第一季財報結果電話會議。

It's my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations. Please go ahead.

我很榮幸將電話交給投資人關係事業部副總裁Ann Nicholson。請開始。

Thank you, John, and good morning. Welcome to Corning's first-quarter conference call. With me today is Wendell Weeks, Chairman and Chief Executive Officer, and Jim Flaws, Vice Chairman and Chief Financial Officer.

謝謝你，John，大家早安。歡迎參加康寧第一季電話會議。今天與我一同出席的有董事長兼執行長Wendell Weeks，以及副董事長兼財務長Jim Flaws。

Before we begin our formal comments, I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks involve a number of risk, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the Company's financial reports.

在我們開始正式發言之前，我想提醒各位，今天的談話包含前瞻性陳述，屬於1995年《私人證券訴訟改革法》所界定的範圍。這些陳述涉及多項風險、不確定性及其他因素，可能導致實際結果出現重大差異。相關因素已詳載於本公司的財務報告中。

You should also note that this presentation contains a number of non-GAAP measures, a reconciliation can be found on our website. Now I'll turn the call over to Jim.

另外請注意，本簡報包含若干非GAAP衡量指標，相關調節表可在我們的網站上查閱。現在我把電話交給Jim。

Thanks, Ann, good morning, everyone. I'd like to begin today by looking back at what we said at our annual investor meaning in February regarding our plan for 2015. We said we'll have positive momentum in all our businesses and we expect this momentum to continue. We're leveraging our innovation engine to drive growth in today's businesses while also creating entirely new ones. We expect to grow sales and earnings this year and we are executing on a commitment to return cash to shareholders.

謝謝Ann，大家早安。我想先回顧我們在2月年度投資人會議上，針對2015年計畫所做的說明。我們表示，所有事業都將具備正向動能，並預期這股動能會持續。我們正運用創新引擎，推動既有事業成長，同時也創造全新的事業。我們預期今年營收與獲利將成長，並正落實將現金回饋股東的承諾。

So we're now three months into the year and I am very pleased to say we're off to a great start towards these goals, exceeding our plan and consensus for quarter one. In the first quarter, we grew the Company's core sales with Optical Communications exceeding expectations and Gorilla Glass volume up more than 20%.

目前今年已過三個月，我很高興地說，我們朝這些目標有了非常好的開局，第一季表現超越我們的計畫與市場共識預期。第一季，我們的核心營收成長，其中光學通訊優於預期，Gorilla Glass出貨量成長超過20%。

We enjoyed moderate sequential price declines for LCD glass in the first quarter and we now expect prices to decline even less in the second quarter. We closed three acquisitions in Optical Communications which will extend our leadership in this segment. We grew our core NPAT by 14% year over year and EPS by 21%. And we executed $502 million in share repurchases to retire a total of 21 million shares during the quarter.

第一季LCD玻璃價格呈現溫和的季減，我們目前預期第二季價格下滑幅度將更小。我們在光學通訊完成三項併購，將延伸我們在此領域的領導地位。我們的核心NPAT（稅後淨利）年增14%，EPS年增21%。此外，我們執行了5.02億美元的庫藏股回購，於本季共註銷2,100萬股。

In summary, we had broad-based contributions to our first-quarter results and we look forward to this momentum continuing through Q2 and delivering a full year of strong performance.

總結而言，我們第一季的成果來自各事業部的廣泛貢獻，我們期待這股動能在第二季持續，並帶來全年強勁的表現。

Now the euro weakening is affecting us somewhat as it is many companies. The Q1 year-over-year impact for us was approximately $50 million in sales and $10 million in net income, or about 2% on each line. However, it's impact did not prevent us from delivering excellent results. With the euro exchange rate now approximately 20% lower versus 2014, it is offsetting the growth in some of our businesses.

目前歐元走弱對我們有一定影響，許多公司也同樣如此。第一季相較去年同期，對我們的影響約為營收減少5,000萬美元、淨利減少1,000萬美元，兩者約各為2%。不過，這項影響並未阻礙我們交出優異成績。由於目前歐元匯率相較2014年約低20%，正抵銷我們部分事業的成長。

So I walk through some additional detail on this impact as I walk through our results and outlook. Now one other note on FX, for those who are looking at our comparison against sales consensus, FX was the only reason that we missed sales consensus.

因此，在我說明我們的業績與展望時，也會進一步說明這項影響的細節。另外再補充一點外匯因素：對於關注我們與市場營收共識比較的人而言，外匯是我們未達營收共識的唯一原因。

So let's delve into the first-quarter details. As a reminder these are core results. First-quarter sales were $2.4 billion, up 4% versus last year driven largely by Optical Communications with help from Specialties, Gorilla Glass and Environmental. Excluding the impact of a weaker euro exchange rate, sales would have been up an additional $49 million, or 7% versus Q1 of 2014.

接著我們深入第一季細節。提醒各位，以下為核心業績。第一季營收為24億美元，較去年成長4%，主要由光學通訊帶動，並有特種材料、Gorilla Glass與環境科技的助力。若排除歐元走弱的影響，營收將再增加4,900萬美元，亦即較2014年第一季成長7%。

Our gross margin was 44% up year over year and better than we had expected. Gross margins improved in every business except Life Science. Improve manufacturing efficiency in Gorilla Glass was a big help.

我們的毛利率為44%，較去年同期上升，且優於我們原先預期。除生命科學外，各事業的毛利率皆有所改善。Gorilla Glass製造效率提升提供了很大助益。

SG&A spending was flat year over year, R&D spending was lower year over year driven by lower project spending compared to quarter one of 2014. Our gross equity earnings of $53 million were down 13% year over year and lower than we had expected driven by lower equity earnings from Dow Corning.

SG&A（銷售、一般及行政）費用與去年同期持平；研發費用較去年同期下降，主要因相較2014年第一季，專案支出較低。我們的權益法投資收益總額為5,300萬美元，年減13%，且低於我們預期，原因是來自Dow Corning的權益法收益較低。

Net income was up 14% versus last year despite the impact of the weaker euro which was a negative $10 million. The weaker euro impacted our Q1 results versus last year by approximately $0.01 a share.

儘管歐元走弱帶來1,000萬美元的負面影響，淨利仍較去年成長14%。歐元走弱使我們第一季相較去年同期的每股盈餘影響約為0.01美元。

EPS was $0.35, up $0.06 or $0.21 -- 21% versus last year and better than street consensus by $0.01. I'm delighted with this strong start to the year.

EPS為0.35美元，較去年增加0.06美元，亦即年增21%，並較華爾街共識高出0.01美元。我對今年如此強勁的開局感到非常振奮。

So now let's look at our detailed segment results and we'll begin with Display. Display sales were $1 billion, slightly better than last year. Sequentially, quarter one price declines were moderate and volume was down slightly, both as expected. However, versus quarter one of 2014, volume was up in the high teens.

接下來我們看各事業部的詳細表現，先從顯示科技（Display）開始。顯示科技營收為10億美元，略優於去年。以季比來看，第一季價格下滑溫和、出貨量小幅下降，皆符合預期。不過，相較2014年第一季，出貨量則有高十位數的成長。

Gross margins in Display were up versus last year driven by the additional volume in synergies offsetting price declines. Net income was up 4% year over year. There's no question that cost reduction efforts boosted by the CPM synergies and the moderate pricing environment have enabled us to maintain profitability in this business. We are very pleased with these results.

顯示科技的毛利率較去年上升，主要因新增出貨量與協同效益抵銷了價格下滑。淨利年增4%。毫無疑問，在CPM協同效益帶動下的成本降低努力，加上溫和的定價環境，使我們得以維持此事業的獲利能力。我們對這些成果非常滿意。

Now looking at the supply chain, we estimate forward-looking weeks of inventory ended quarter one at about 18.5 weeks. While this is at the high end of the range we consider healthy, this was not unexpected since we are entering the lowest quarter for retail sales. Our model indicates this level will be the same at the end of Q2.

再看供應鏈，我們估計第一季末的前瞻性庫存週數約為18.5週。雖然這已接近我們認為健康區間的上緣，但並不意外，因為我們正進入零售銷售最淡的一季。我們的模型顯示，第二季末該水準將維持不變。

Now let me turn to Optical Communications where sales were $697 million, up 18% versus last year and much better than our forecast. Sales for carrier networks were stronger than expected in North America. Both carrier and enterprise networks and the acquisition of TRM contributed to the year-over-year growth.

接著談光學通訊（Optical Communications），營收為6.97億美元，較去年成長18%，且大幅優於我們的預測。北美的電信營運商網路（carrier networks）銷售強於預期。營運商與企業網路（enterprise networks）兩者，以及TRM的併購，都對年增成長有所貢獻。

Now the impact of the week euro lowered sales in this segment by $22 million. Net income in this segment was up 85%. Now Optical Communications has some euro denominated costs, so the weaker euro impacted profitability only slightly.

歐元走弱使該事業部營收減少2,200萬美元。該事業部淨利年增85%。光學通訊有部分成本以歐元計價，因此歐元走弱對獲利能力的影響僅屬輕微。

The additional volume in all parts of the business and the acquisition of TRM drove the higher net income. Our commercial and manufacturing organizations are the driving force behind these strong year-over-year results.

各業務領域的額外出貨量，以及TRM的併購，推動淨利提高。我們的商務與製造團隊是這些強勁年增成果的主要推動力。

Now turning to Environmental, Q1 sales were $282 million, up 3% versus last year despite the weaker euro trimming sales by $16 million. Environmental sales were slightly better than expected with strong heavy duty sales in the United States driving growth.

再看環境科技（Environmental），第一季營收為2.82億美元，較去年成長3%，儘管歐元走弱使營收減少1,600萬美元。環境科技營收略優於預期，美國重型車用（heavy duty）產品銷售強勁帶動成長。

While we have some manufacturing in Europe, the majority of our cost in the segments are dollar-based. So the weaker euro was a drag on year-over-year profitability in this segment and impacted net income in this segment by $6 million versus last year. Net income was still up $5 million, or 12% mainly due to the higher volume of heavy duty products and manufacturing efficiencies.

雖然我們在歐洲有部分製造，但該事業部的大部分成本以美元計價。因此，歐元走弱拖累該事業部相較去年同期的獲利能力，並使該事業部淨利較去年減少600萬美元。淨利仍增加500萬美元、亦即成長12%，主要來自重型產品出貨量提高與製造效率提升。

Now in Specialty Materials sales for the quarter were up 4% year over year. Gorilla Glass is off to a terrific start this year with our volume growing more than 20% compared to last year. Gorilla Glass 4 sales are going very well as its value is being embraced by our OEM customers. Segment possibility improved sequentially and year over year driven by gross margin improvements in Gorilla Glass.

目前，特種材料（Specialty Materials）本季銷售額年增4%。Gorilla Glass 今年開局表現極佳，我們的出貨量較去年成長超過20%。Gorilla Glass 4 的銷售進展非常順利，因其價值正獲我們的 OEM 客戶所認同。在 Gorilla Glass 毛利率改善的帶動下，本事業部獲利能力（segment possibility）較前一季及去年同期均有所提升。

Unfortunately our Advanced Optics business sales declined versus last year and that's the reason we missed our original segment sales forecast. We felt the impact of weaker demand at our semiconductor customers, and the weaker euro also decreased sales by approximately $4 million. Never the less net income in Q1 was up year over year by 44% driven by Gorilla's higher volumes and improved manufacturing efficiencies. The impact to the Advanced Optic lower sales on net income is small because it's margins are lower than Gorilla Glass.

不幸的是，我們的先進光學（Advanced Optics）業務銷售較去年下滑，這也是我們未達原先事業部銷售預測的原因。我們感受到半導體客戶需求轉弱的影響，而歐元走弱也使銷售額約減少400萬美元。儘管如此，第一季淨利仍較去年同期成長44%，主要由 Gorilla 較高的出貨量與製造效率提升所帶動。先進光學銷售下滑對淨利的影響不大，因其毛利率低於 Gorilla Glass。

Now Life Sciences' Q1 sales were down 6% year over year. Net income was down 10%. Foreign exchange was the primary cause of the year-over-year weakness in both sales and profits. Equity earnings from Dow Corning were $51 million and short of our expectations driven by the lower-than-expected sales of polysilicon.

生命科學（Life Sciences）第一季銷售額年減6%。淨利年減10%。匯率是造成銷售與獲利年對年走弱的主要原因。來自 Dow Corning 的權益法投資收益為5,100萬美元，低於我們的預期，主因為多晶矽銷售低於預期。

Recall Hemlock sales of polysilicon to solar customers exceeded our expectations in Q4 of 2014. We believe customers have pulled some demand into Q4 in order to meet contractual obligations. Sales fell off more than expected in Q1. Stronger dollar also impacted Dow Corning sales and earnings and reduced Corning's equity earnings by about $4 million versus last year.

回顧 2014 年第四季，Hemlock 對太陽能客戶的多晶矽銷售超出我們預期。我們認為客戶為了履行合約義務，將部分需求提前至第四季。因此第一季銷售下滑幅度超出預期。美元走強也影響 Dow Corning 的銷售與獲利，並使 Corning 的權益法投資收益較去年減少約400萬美元。

So now turning to the balance sheet, we delivered strong operation cash flow in the quarter of $600 million. Our capital spending forecast remains at the $1.3 billion to $1.4 billion for the full year. During the quarter we spent $531 million on four acquisitions and $502 million on share repurchases. Leaves our balance sheet cash at a very healthy $5.1 billion and we entered the quarter with approximately $2 billion of cash in the United States.

接著看資產負債表，本季我們創造了強勁的營運現金流，達6億美元。我們對全年資本支出預測維持在13億至14億美元。本季我們在四項併購上支出5.31億美元，並以5.02億美元進行庫藏股回購。使得資產負債表現金維持在非常健康的51億美元；且我們在本季開始時，美國境內約有20億美元現金。

So my last Q1 update is regarding our FX hedges. During the first quarter we further reduced our risk to the weaker yen in 2016 and 2017. Investors may recall we previously had protected approximately 80% of our 2016 profits and about 70% of 2017. I'm now pleased to say we mitigated almost 100% of our estimated exposure through 2016 and 80% of 2017's exposure.

第一季更新的最後一點是關於我們的外匯避險（FX hedges）。第一季期間，我們進一步降低了 2016 與 2017 年日圓走弱的風險。投資人可能記得，我們先前已保護約80%的2016年獲利，以及約70%的2017年獲利。我很高興地表示，我們目前已將至2016年的預估曝險幾乎100%完成緩解，並將2017年的曝險緩解至80%。

As a reminder our core rate on the yen is 99. Our yen translation hedges protect our earnings from fluctuation exchange rates and allow us to do constant currency better known as core performance on sales in NPAT for Display and some with Specialty Materials. Now also during the quarter, we hedged against further euro weakness in 2015 and 2016.

提醒一下，我們對日圓的核心匯率（core rate）為99。我們的日圓換算避險（yen translation hedges）可保護獲利免受匯率波動影響，並使我們能以固定匯率（constant currency），也就是更常稱為核心表現（core performance），來呈現顯示科技（Display）以及部分特種材料在銷售與 NPAT（稅後淨利）上的表現。此外，本季我們也針對 2015 與 2016 年歐元進一步走弱進行避險。

With these hedges we projected -- protected the majority of our estimated euro NPAT exposure for Environmental, Life Sciences for this year and next. We don't do constant currency for the euro, so you'll see sales reflect the impact of the translation. New euro hedge contract gains are recorded in other income and other expense and obviously protect NPAT.

透過這些避險，我們已保護今年與明年環境科技（Environmental）與生命科學的多數預估歐元 NPAT 曝險。我們不對歐元採用固定匯率（constant currency）呈現，因此你會看到銷售額反映換算影響。新的歐元避險合約收益會記錄在其他收益與其他費用中，並且顯然可保護 NPAT。

So now for outlook, we expect the Q2 impact of the euro to be roughly the same amount as Q1 or approximately a negative $12 million of NPAT, or $0.01 of EPS compared to a year ago. We expect similar the impact in the back half of 2015 as well if the euro stays at its current level.

展望未來，我們預期第二季歐元的影響大致與第一季相同，約為 NPAT 減少1,200萬美元，或相較去年同期 EPS 減少0.01美元。若歐元維持在目前水準，我們也預期 2015 年下半年會有類似影響。

Now let's begin with a Display outlook for business. We have no changes to our expectations for LCD retail and glass markets for the year. We expect the retail market is measured in square feet of glass to be up in the high-single digits. We think LCD television units will grow mid-single digits with area grow higher driven by increasing screen sizes.

接下來先從顯示科技（Display）的業務展望開始。我們對今年 LCD 終端零售與玻璃市場的預期沒有變動。我們預期以玻璃平方英尺衡量的零售市場將以高個位數成長。我們認為 LCD 電視出貨量將以中個位數成長，而面積成長將更高，主要由螢幕尺寸持續放大所帶動。

We believe the trend of consumers buying larger televisions will continue. We are monitoring the effect of currency devaluations to the dollar on TV prices and TV market demand. Historically, currency depreciation has not had significant impact on television demand. While we only have two months of data for the year, TV's area sell through is in fact ahead of our expectations.

我們相信消費者購買更大尺寸電視的趨勢將持續。我們正密切關注各國貨幣對美元貶值對電視價格與電視市場需求的影響。歷史上，貨幣貶值對電視需求並未造成顯著影響。雖然今年目前只有兩個月的數據，但電視面積的終端銷售（area sell through）確實高於我們的預期。

Many investors asked us about our expectations for ultra-high definition television for 4K. We believe ultra-high def has the opportunity to be a major driver of area demand in the near future. We're expecting approximately 25 million sets to be shipped in 2015, up from 10 million in 2014 and these ultra-high def sets have higher average screen sizes.

許多投資人詢問我們對 4K 超高解析度電視的預期。我們認為超高解析度在不久的將來有機會成為面積需求的重要驅動因素。我們預期 2015 年出貨約2,500萬台，高於 2014 年的1,000萬台，而且這些超高解析度機種的平均螢幕尺寸更大。

So we continue to feel good about the retail market. Inventory levels are at the high end of our estimate of the healthy range and reached this level a quarter earlier than recent history. Glass supply actually remains quite tight to demand especially in large gen sizes. Corning's running its online capacity at full utilization while keeping some capacity idle in order to maintain the right balance between supply and demand. Other major glass makers have publicly stated that they're keeping some capacity idle as well and we believe they're also running their online capacity at full utilization.

因此，我們仍對零售市場感到樂觀。庫存水位位於我們所估計健康區間的高端，且比近年趨勢提早一季達到此水準。玻璃供給相對需求其實仍相當吃緊，尤其是在大世代（large gen）尺寸。Corning 正以滿載方式運用已上線產能，同時保留部分產能閒置，以維持供需之間的適當平衡。其他主要玻璃製造商也公開表示同樣保留部分產能閒置；我們相信他們的已上線產能也在滿載運轉。

Like many investors, we watch key indicators in the supply chain. One key indicator to supply chain health is the direction of panel prices. Another is the level of supply chain inventory. As I pointed out earlier, supply chain inventory has moved to the upper end of healthy range as retail enters its slow quarter. So it is not a surprise to see moderate declines in panel prices at this point in the year. We have not seen a negative impact from these indicators yet, but obviously remain very alert.

和許多投資人一樣，我們會觀察供應鏈中的關鍵指標。其中一項衡量供應鏈健康度的關鍵指標是面板價格的走勢。另一項是供應鏈庫存水位。如我先前指出，隨著零售進入淡季，供應鏈庫存已移至健康區間的上緣。因此，在一年中的這個時間點看到面板價格溫和下滑並不令人意外。我們尚未從這些指標看到負面影響，但顯然仍會保持高度警覺。

We expect the Q2 LCD glass market to be up low-single digits sequentially. Expect our glass volume to be up in line with the market. Now we expect LCD glass prices to decline even less than in Q1. When we look at the heartbeat of pricing without the impact of thin -- thick to thin conversions, we feel very good about the level of declines, and especially the decline trend over the last four quarters as the decline rate has moderated in each consecutive quarter.

我們預期第二季 LCD 玻璃市場將較前一季以低個位數成長。預期我們的玻璃出貨量將與市場成長一致。我們預期 LCD 玻璃價格下滑幅度將比第一季更小。當我們觀察不受薄化（thin -- thick to thin conversions）影響的價格脈動時，我們對下滑幅度的水準感到非常樂觀，尤其是過去四季的下滑趨勢，因為下滑速度在每一個連續季度都在放緩。

We believe we can maintain moderately quarterly cost declines for LCD glass in the back half as well for several reasons. Retail demand is expected to grow, helping to keep inventories from veering into unhealthy levels.

我們相信在下半年也能維持 LCD 玻璃成本的溫和季度下降，原因有幾點。預期零售需求將成長，有助於避免庫存偏離至不健康水位。

Panel makers are profitable and they're getting the benefit of the weaker yen. LCD glass industry supply is balanced to demand. And the operating margins of our competitors are such they can't afford large price declines if they hope to remain profitable.

面板製造商目前具備獲利能力，並且正受惠於日圓走弱。LCD 玻璃產業供給與需求維持平衡。而我們競爭對手的營業利益率狀況，使其若希望維持獲利，便無法承受大幅的價格下滑。

Now moving to Optical Communications, we expect Q2 sales to be up mid teens versus Q2 of 2014. Fiber-to-the-home and data center sales in North America remain strong. Also contributing to growth will be the impact of the three previously announced acquisitions, TRM, Samsung Fiber and Cable, and iBwave.

接著看光纖通訊（Optical Communications），我們預期第二季銷售額將較 2014 年第二季成長約中十位數百分比。北美的光纖到府（Fiber-to-the-home）與資料中心銷售仍然強勁。此外，成長也將受惠於先前宣布的三項併購：TRM、Samsung Fiber and Cable，以及 iBwave。

In Environmental, we expect continued strength in the end market in Q2, and for our sales volume to be consistent with a strong Q2 of 2014. However, year-over-year Q2 sales are expected to be down mid-single digits due to the impact of the weaker euro. We've made significant improvements to our cost and capability position in Environmental and we expect to maintain these operational efficiencies in Q2.

在環境事業方面，我們預期第二季終端市場將持續強勁，且我們的銷售量將與2014年強勁的第二季一致。然而，由於歐元走弱的影響，預期第二季銷售額年對年將下滑中個位數百分比。我們已在環境事業的成本與能力布局上做出重大改善，並預期在第二季維持這些營運效率。

So now turn to Specialty Materials, we expect another quarter of double-digit volume growth of Gorilla Glass versus last year. Offsetting this growth is continued weakness in our Advanced Optics business driven by continued softness at our semiconductor customers and a weak euro. So expect total sales in this segment to be down mid-single digits versus last year.

接著談特殊材料，我們預期Gorilla Glass的出貨量相較去年將再有一季的雙位數成長。抵銷這項成長的是我們先進光學業務持續疲弱，主因是半導體客戶需求持續偏軟以及歐元走弱。因此，預期本事業群總銷售額將較去年下滑中個位數百分比。

Now we expect to win more models with Gorilla Glass 4 during the quarter, and are on track for another year of volume growth for this business. Expect the market for cover glass to be up mid-teens in volume terms, driven by smart phones and touch-enabled notebooks.

我們預期本季將有更多機種採用Gorilla Glass 4，並且正按計畫在今年再度實現此業務的出貨量成長。預期保護蓋板玻璃市場在出貨量方面將成長中十位數百分比，主要由智慧型手機與具觸控功能的筆記型電腦所帶動。

We are expecting fewer tablets to be sold this year, which does impact our Gorilla Glass business. But this is mitigated by larger smartphone screen sizes and new hand-held devices, including some with Gorilla on the back and continued share gains at Chinese OEMs.

我們預期今年平板電腦銷量將減少，這確實會影響我們的Gorilla Glass業務。但較大尺寸的智慧型手機螢幕與新的手持裝置（包括部分背面也採用Gorilla的產品）、以及在中國OEM的市占持續提升，將可緩解這項影響。

In Life Sciences, we expect sales to be down slightly with last year's second quarter driven by the weaker euro.

在生命科學方面，受歐元走弱影響，我們預期銷售額將較去年第二季小幅下滑。

Continuing the rest of our Q2 forecast, we expect Q2 equity earnings from Dow Corning to be approximately $60 million, this us up from Q1 in last year driven by operational performance of silicone's business. Versus last year, sales for silicones are consistent, sales for polysilicone are down.

延續我們對第二季其餘項目的展望，我們預期來自Dow Corning的第二季權益法收益約為6,000萬美元，較去年第一季上升，主要由矽膠業務的營運表現所帶動。與去年相比，矽膠（silicones）銷售額大致持平，聚矽（polysilicone）銷售額下滑。

We expect gross margin to be approximately 45%, up 1 percentage point over last year, driven mainly by the additional volume in Optical Communications and improved Gorilla Glass margins. SG&A and R&D spending will be 13% and 8% of sales respectively and consistent with 2014. Other income, other expense is expected to be a net expense of approximately $40 million. Our effective tax rate for the full year of 2015 is expected to be approximately 18%.

我們預期毛利率約為45%，較去年提高1個百分點，主要由光學通訊額外出貨量以及Gorilla Glass毛利率改善所帶動。銷管費（SG&A）與研發（R&D）支出分別將占銷售額的13%與8%，與2014年一致。其他收入、其他費用預期淨額約為4,000萬美元的費用。我們預期2015年全年有效稅率約為18%。

So in summary, we're coming off a strong quarter, and that momentum is expected to deliver growth again this quarter. That concludes my opening comments. Ann?

總結來說，我們剛結束一個強勁的季度，而這股動能預期將在本季再次帶來成長。以上是我的開場說明。Ann？

Thank you, Jim. I'll open the lines for questions. John?

謝謝你，Jim。我將開放電話線供提問。John？

(Operator Instructions)

(接線員指示)

Rod Hall, JPMorgan.

Rod Hall，摩根大通。

Jim, I wanted to dig into the euro exposure a little bit more. We've got some pretty good regional disclosure from you guys, but I had two questions for you. One is by segment are you able to let us know what the euro revenue exposure is so that we can mark to market over time as the exchange rates continue to fluctuate?

Jim，我想更深入了解一下歐元曝險。你們提供了相當不錯的區域別揭露，但我有兩個問題。第一，能否按事業群告訴我們歐元營收曝險是多少，讓我們能在匯率持續波動時，隨時間推移進行市價評估（mark to market）？

And then secondly, or alternatively, could you also let us know what the effective euro change was that you're using to calculate these euro impacts in the revenues that you called out to us?

第二，或者，你們也能否告訴我們，你們用來計算並向我們說明這些營收歐元影響時，所採用的有效歐元變動幅度是多少？

I think we can give you some help on that, Rod, I'm not prepared to do it on the phone call. But I'm sure we can work with Ann and give you some help on that.

Rod，我想我們可以在這方面給你一些協助，但我不準備在這通電話上直接提供。不過我相信我們可以和Ann一起合作，給你一些協助。

Okay. And then the other thing I wanted to ask you, Jim, was on 4K elasticity, I know I keep asking this question every quarter, but what you are guys observing on price elasticity and where do you think we are on pricing right now? I know that you thought that pricing will continue to come down pretty significantly through the year, but just wonder if you could give us a little bit of an update on that?

好的。另外一件我想問的事，Jim，是關於4K的彈性。我知道我每一季都在問這個問題，但你們觀察到的價格彈性如何？你們認為目前的定價處於什麼位置？我知道你之前認為今年價格還會相當明顯地下滑，但想請你更新一下目前的情況？

I don't have a lot of new information on 4K pricing. We did see good promotions during the period of time, obviously at Christmas and for Super Bowl. But we continue to feel that the pricing is coming down. A lot of the set makers have just announced their new models. You've probably been seeing a lot of announcements, and they'll be available at retail starting late May, I believe.

我手上沒有太多關於4K定價的新資訊。我們確實在那段期間看到不錯的促銷活動，顯然是在聖誕節以及超級盃期間。但我們仍然認為價格正在下滑。許多電視機製造商剛宣布他們的新機種。你可能也看到很多公告，我相信它們將從5月下旬開始在零售通路上架。

We continue to believe it's approaching a level that will drive demand there. And we talked before about hitting the 1.5 comparison to a good quality regular high def set. I think we're making progress on that.

我們仍然相信價格正接近能夠帶動需求的水準。我們之前談過，要達到相對於一台高品質一般高畫質（HD）電視約1.5倍的比較基準。我認為我們正朝這個方向取得進展。

I think you know that we've been feeling that 2016 is going to be the breakthrough year for ultra-high def. But we think 2015 will be a good year. There are some people who think we're being a little conservative on that, and we'll find out in the back half of the year.

我想你也知道，我們一直認為2016年將是超高畫質（Ultra HD）的突破年。但我們認為2015年也會是個不錯的一年。有些人覺得我們在這方面可能稍微保守，我們會在今年下半年見分曉。

I think one thing I'd add for you Rod, too, is really intriguing that's happening, is that on top of the 2K, 4K, now we're seeing the introduction of a higher end version with quantum dot technology, which they look terrific by the way. And once again it helps make OLED TV a more distant future possibility.

Rod，我再補充一點：目前發生的一件很耐人尋味的事是，在2K、4K之上，我們現在看到導入了採用量子點技術的更高階版本，而且它們看起來非常出色。而且這再一次讓OLED電視成為更遙遠的未來可能性。

But what I think to your question that offers up is you have now a new entry at the highest end and they'll also carry pure ultra underneath, which ought to give them some good flex on being able to have ultra get closer and closer to standard def.

但我認為就你的問題而言，這代表你現在在最高階端有了一個新的切入點，而在其下方也會保留純Ultra產品，這應該能讓他們在彈性上更有空間，使Ultra能夠愈來愈接近標準高畫質（standard def）的價位。

Great, okay. Thanks, Wendell.

很好，好的。謝謝你，Wendell。

Mark Sue, RBC Capital Markets.

Mark Sue，RBC資本市場。

Gentlemen, if I look at the sequential growth in Display, are we starting to see some diminishing larger utility for larger TVs, how long can we see this upgrade cycle for larger TVs before we see the 4K cycle start later this year? And as it relates to pricing, the price decline is definitely less than you had expected, with this current supply demand balance and rational behavior likely to continue, can pricing actually go up or maybe not go down?

各位先生，如果我看顯示器業務的季對季成長，我們是否開始看到大尺寸電視的效用提升正在減弱？在今年稍晚4K循環啟動之前，我們還能看到這波大尺寸電視的升級循環持續多久？另外就定價而言，價格下滑幅度確實小於你們原先預期；在目前供需平衡以及理性行為可能持續的情況下，價格是否可能上升，或至少不再下滑？

I'll let Wendell take the price question.

我把價格問題交給Wendell回答。

Thank you. (laughter)

謝謝。(笑聲)

Obviously in our dreams, pricing goes up. But the first step is for it to continue to diminish. And we've been delighted as I said in the call to have this happen four quarters in a row. So we think we got good momentum there.

很顯然，在我們的夢想裡，價格會上升。但第一步是讓它持續趨緩下跌。正如我在電話會議中所說，我們很高興這種情況已連續四個季度發生。所以我們認為這方面有不錯的動能。

In term of large sizes, we don't see a change statement coming in the continued growth of large-sized televisions. In fact every year for the last three, we've mid-year raised our size estimates. And that's continuing in the first couple months of retail, the [weak] data we have so far this year, it's continuing to grow. So we don't think we've come to the end of that cycle on standard high def, and clearly ultra-high def will make it be even better because those are sold in larger sizes primarily, and also look much better in larger sizes.

就大尺寸而言，我們沒有看到大尺寸電視持續成長的趨勢出現轉變。事實上，過去三年每一年我們都在年中上調我們對尺寸的預估。而且今年前幾個月的零售端（我們目前掌握的[weak]資料）顯示，仍在持續成長。因此我們不認為標準高畫質（HD）的那個循環已經結束；而且很明顯，超高畫質（Ultra HD）會讓情況更好，因為它們主要以更大尺寸銷售，且在大尺寸上看起來也更出色。

And on price, as you heard Jim comment in his opening comments, we have a number of elements aligning that are helping us reduce the level of price decline quarter over quarter. And we really like the trend. And we expect those factors to continue to be in place.

至於價格，如同你們聽到 Jim 在開場評論中提到的，我們有多項因素正在趨於一致，正協助我們降低季度對季度的價格下滑幅度。我們非常喜歡這個趨勢。我們預期這些因素將會持續存在。

However at this time, we're not anticipating being able to raise prices. That would be a fabulous problem to have in total. However, what we are looking very closely at is the move to ultra thin televisions and ultra thin glass. There may be the opportunity there for us to introduce that product as a price premium. But we're doing that currently, whether or not that can sustain will really depend on both our competitors' capabilities and their mindset.

不過就目前而言，我們不預期能夠調漲價格。那會是一個非常棒的「整體性」問題。然而，我們正在非常密切關注的是朝向超薄電視與超薄玻璃的趨勢。在那裡，我們可能有機會把該產品以溢價方式導入。但我們目前正在做；至於能否持續，將真正取決於競爭對手的能力以及他們的心態。

That's helpful. And Wendell, can I ask a broader question, you have balance across business segments, four out of the five growing, some of the business segments are at various life cycles, Display mature and generating cash, Optical seeing a resurgence in growth, any inclination to think about separating business units or potentially splitting out segments considering the different business segments do you have?

這很有幫助。Wendell，我可以問一個更廣泛的問題嗎？你們在各業務區塊之間相對均衡，五個之中有四個在成長；有些業務區塊處於不同的生命週期，顯示業務成熟並產生現金，光學業務成長再度回升。考量到你們不同的業務區塊，你是否有任何傾向去思考分拆事業單位或可能把某些區塊拆分出去？

Well, the way we think about our portfolio is that to continue to be in our portfolio, you have to do three things as a business unit. First, you have to be able to beat your competition. In other words you have to grow sales and earnings faster than all your competition and your industry you're in overall. That's a very harsh metric, right? That's very hard to do. All of our segments are doing it.

嗯，我們看待投資組合的方式是：要能持續留在我們的投資組合中，作為一個事業單位你必須做到三件事。第一，你必須能打敗競爭對手。換句話說，你的銷售與獲利成長必須比所有競爭對手以及你所處的整體產業都更快。這是一個非常嚴苛的衡量標準，對吧？這非常難做到。我們所有的事業區塊都做到了。

Second, that as a segment, you have to have a set of assets that can potentially help other segments. Or three, you have to have a market access point that we can use the assets from our other segments or the corporation to create entirely new businesses.

第二，作為一個區塊，你必須擁有一組資產，能夠在潛在上幫助其他區塊。或者第三，你必須擁有一個市場進入點，我們可以運用其他區塊或公司層級的資產，去創造全新的事業。

So great example of that would be our Environmental business. So Environmental is basically an automotive-driven business. We have a significant asset, which is of course our R&D, as well as significant glass assets that we use to make LCD and Gorilla.

一個很好的例子就是我們的環境事業。環境事業基本上是由汽車所驅動的業務。我們有一項重要資產，當然就是我們的研發能力，以及我們用來製造 LCD 與 Gorilla 的大量玻璃資產。

What we're using that position in Environmental to do in those strong customer relationships is to introduce Gorilla Glass to the automotive segment and be able to do it through the front end that we have in that segment. And we have a number of those examples.

我們利用在環境事業中的這個位置，以及那些強健的客戶關係，把 Gorilla Glass 導入汽車領域，並且能透過我們在該區塊既有的前端通路來推進。而且我們有不少這樣的例子。

So we're seeing a lot of that interaction with Glass, with Environmental, with Specialty, of course, and in Opto as well with being able to take into consumer electronics some of our Opto capabilities.

因此我們看到玻璃、環境、特殊材料（Specialty）之間有很多互動；當然在 Opto 方面也是如此，能把我們部分 Opto 的能力帶入消費性電子。

Life Sciences is the one where we have yet to prove that we can bring a significant new innovation to fundamentally turn that business into a more -- a stronger grower that makes use of our R&D investment. We anticipate to be able to answer that question shortly. If the answer ends up being no, then that's a candidate. But we think the answer is going to end up being yes.

生命科學是目前我們尚未證明能帶來重大新創新、從根本上把該業務轉變為更——更強勁的成長引擎，並能有效運用我們的研發投資的那一個。我們預期很快就能回答這個問題。如果答案最後是否定的，那它就是一個候選項。但我們認為答案最後會是肯定的。

That's helpful. Thank you.

這很有幫助。謝謝。

Is that helpful or is that too much?

這樣有幫助嗎？還是我講太多了？

That's helpful, that's never enough. Thank you.

很有幫助，永遠都不嫌多。謝謝。

Amitabh Passi, UBS.

Amitabh Passi，UBS。

Jim, my question for you is on the Display segment. Seems like the first calendar quarter, volumes came in maybe below expectations, down 5% sequentially. And then also the fact that inventories are now at 18.5 weeks, they seem to be up quite a bit from 3Q 2014 at 15.5 and I think even last year you were around 17 weeks in 1Q and 16.5 in 2Q, so wanted to understand the inventory trends in the supply chain.

Jim，我想問你關於顯示（Display）事業區塊的問題。看起來第一個曆年季度，出貨量可能低於預期，季比下滑 5%。另外，供應鏈庫存現在是 18.5 週，似乎比 2014 年第 3 季的 15.5 週高出不少；而且我記得去年你們在第 1 季大約是 17 週、第 2 季是 16.5 週，所以想了解供應鏈中的庫存趨勢。

Well, I think the volume sequentially was in line with what we were thinking about. So I don't think it was a -- something that was different from what we expected. Inventory is something we're very alert to. The last few years, the peak that we have seen in the supply chain has been about 18.5 weeks. The fact that we're at that at the end of Q1 as opposed to the end of Q2 is something we're very alert to. And -- but we are still within what we regard as the healthy range on inventory.

嗯，我認為出貨量的季比表現與我們原先的想法一致。所以我不認為那是——與我們預期不同的情況。庫存是我們非常警覺的一件事。過去幾年，我們在供應鏈看到的高峰大約是 18.5 週。我們在第 1 季末就達到這個水位，而不是在第 2 季末，這點我們非常警覺。而且——但我們仍然處於我們認為健康的庫存區間之內。

Okay. And then a quick follow up, your gross margin appears to be trending about 100 bps higher than last year, is that a trend you expect to sustain through the rest of the year?

了解。接著一個快速追問：你們的毛利率看起來比去年高約 100 個基點，這個趨勢你們預期能在今年剩餘時間維持嗎？

Yes, we feel quite good about our gross margin trends. As you know, I often answer this by saying it depends somewhat on the mix of our businesses. But in four of our five segments, gross margin percent is going up in each one of them. And so it -- the absolute balance of them has an impact because obviously some segments had a lower gross margin, for example, Optical is lower. But we're improving gross margins in almost all of our businesses. Especially delighted by the performance in Gorilla. So I would say it's sustainable as long as the markets remain at the level of volume we're seeing today.

是的，我們對毛利率趨勢相當有信心。如你所知，我常常這樣回答：這在某種程度上取決於我們各業務的組合。但在我們五個區塊中的四個，毛利率百分比都在上升。因此——它們的絕對占比會產生影響，因為顯然有些區塊毛利率較低，例如 Optical 較低。但我們幾乎在所有業務中都在改善毛利率。尤其對 Gorilla 的表現感到非常滿意。所以我會說，只要市場維持在我們今天看到的出貨量水準，這就是可持續的。

Okay, excellent. I'll jump back in queue. Thank you.

好的，很棒。我回到隊列後面。謝謝。

Brian White, Cantor Fitzgerald.

Brian White，Cantor Fitzgerald。

Yes Jim, I'm wondering if you could just take us around the world and highlight what you're seeing in the TV market, in terms of Europe, Asia and US and maybe compare PC market softened, so I'd be curious on what's happening in the TV market. Thanks.

是的，Jim，我想知道你是否可以帶我們環視全球，重點說明你在電視市場看到的情況，例如歐洲、亞洲與美國；另外 PC 市場已經轉弱，所以我也想了解電視市場正在發生什麼。謝謝。

We don't have a tremendous amount of detail yet. I don't have full March results, unfortunately. But we've seen very good demand in North America. China, when you combine the first two months of the year because remember of the movement of the lunar holiday was January last year, and this year it was in February, has been good. Large sizes have been good.

我們目前還沒有非常多的細節。很遺憾，我還沒有完整的 3 月結果。但我們在北美看到非常好的需求。中國方面，若把今年前兩個月合併來看——因為要記得農曆假期的時間移動，去年在 1 月，今年在 2 月——表現不錯。大尺寸表現良好。

The place where we're expecting some weakness at retail is around the comparisons on the World Cup last year which will affect Europe and Latin America primarily. I'd say the one place that we might be seeing slight weakness is Europe so far this year, and that's a slight disappointment to us. But clearly the economies over there have seen some turbulence.

我們預期零售端可能出現一些疲弱的地方，是因為去年世界盃帶來的比較基期，主要會影響歐洲與拉丁美洲。我會說，到目前為止今年我們可能看到些微疲弱的地方是在歐洲，這讓我們有點失望。但很明顯，那邊的經濟確實出現了一些動盪。

So good in the United States, good in China through the lunar holiday. Weak in Europe, and average size continuing to grow.

所以美國表現良好，中國在農曆假期期間表現良好。歐洲疲弱，而平均尺寸持續成長。

And Jim on Gorilla Glass, I just want to be clear, you're what volume targeting growth, I heard a 15% number. Is that for Gorilla or the market or both?

另外 Jim，關於 Gorilla Glass，我想確認清楚：你們的目標出貨量成長是什麼？我聽到 15% 這個數字。那是指 Gorilla、還是指市場、或兩者都是？

That was for the market. We didn't give out a number for our own growth. As you know it somewhat depends on the launch of models and also what the supply chain is doing, but we are expecting the market to grow in the mid-double digits.

那是指市場。我們沒有提供我們自身成長的數字。如你所知，這在某種程度上取決於機型的上市時程，以及供應鏈在做什麼；但我們預期市場將以中段雙位數成長。

We expect the market's use of our glass to be higher than that as we're gaining share and we are obviously growing nicely with larger sizes. But our absolute number will be in the end dependent on what the ending inventory is in the supply chain. And that will be dependent on what people's outlook are as they head into the next year.

我們預期市場對我們玻璃的採用會高於整體市場，因為我們正在提升市占，而且顯然在更大尺寸方面成長良好。但我們最終的絕對數字將取決於供應鏈中的期末庫存水位。而那又將取決於人們在邁入下一年時的展望。

And if I could build on that a little, so when we talk about the market growth, what we're really talking about is the sell-in to the retail piece from our big OEM brand. And as Jim laid out, in the market growth outlook, that's the level we're looking at.

如果我再補充一下，當我們談市場成長時，我們真正談的是我們大型 OEM 品牌對零售端的 sell-in（出貨至通路/零售）的成長。如 Jim 所說，在市場成長展望上，我們看的就是那個層級。

Got it, thank you.

了解，謝謝。

If you take a look at that same level on Gorilla, we would expect Gorilla to grow faster because we're building on an already very strong position. We're actually gaining ground both in the high end and the low end. And then when Jim's talking about that then depends on launches, is now when you step back to how much glass we ship in any given quarter, that gets impacted by how our brand customers decide to build their supply chains.

如果你看同一層級的 Gorilla，我們預期 Gorilla 會成長更快，因為我們是在一個已經非常強勢的基礎上再往上加。我們其實在高階與低階兩端都在擴大優勢。而當 Jim 說這取決於新品上市時，當你退一步看我們在任何一個季度實際出貨多少玻璃，這會受到我們品牌客戶如何決定建構其供應鏈的影響。

There is one thing they never want to do, which is run out of glass at the beginning of their launches. So you can get big supply chain builds and then you can get corrections. So that makes it a little hard to call in any given year in total where our shipments end up being.

有一件事他們絕對不想發生，就是在新品上市初期缺玻璃。所以你可能會看到供應鏈大幅備貨，之後又出現修正。因此，要在任何一年精準預估我們最終出貨量落點會有點困難。

However, what we know is as long as our end market position continues to grow and continues to be strong, that's just a question of what quarter we get the demand in. So that's the real heartbeat we look at for demand.

不過，我們知道的是，只要我們在終端市場的地位持續成長且維持強勁，那就只是需求會落在哪一個季度的問題。所以那才是我們用來觀察需求的真正脈動。

Great. Thank you.

很好。謝謝。

Joseph Wolf, Barclays.

Joseph Wolf，巴克萊。

I wanted to follow up briefly on the inventory. If you could give us a little more granularity, is there a percentage breakdown or the way we can look at the difference between inventory geared towards the television market and inventory geared towards the IT panel market?

我想就庫存再追問一下。如果可以更細一點，是否能提供百分比拆分，或我們可以用什麼方式來看：面向電視市場的庫存與面向 IT 面板市場的庫存之間的差異？

I do not have that level of granularity. I can tell you where the inventory is high is at the set assembly level. It's not at retail, it's not at panel makers. But I do not have the granularity on the television versus IT.

我沒有那麼細的拆分。我可以告訴你庫存偏高的位置是在整機組裝（set assembly）層級。不在零售端，也不在面板製造商端。但我沒有電視對 IT 的細分資料。

Okay. And then there have been a couple of announcements including the OLED lighting development with the Willow glass, I'm wondering is there any volumes we can start to think of over there, and how that impacts your overall supply demand in glass volumes and margins?

好的。另外，最近有幾項公告，包括使用 Willow 玻璃的 OLED 照明開發。我想問那邊是否已經可以開始思考一些出貨量？以及這對你們整體玻璃供需的出貨量與毛利率會有什麼影響？

So on Willow glass, we have now a number of significant near-term opportunities. And that we would hope are going to turn into significant revenues in the near future. It's too early to spike the ball, but we are now working on three or four significant opportunities that have the opportunity to take Willow from being a commercially available product to a product that we start to make some good revenues on. So we're right at the beginning of that, more to come, more to come.

關於 Willow 玻璃，我們現在有若干個重要的短期機會。我們希望在不久的將來能轉化為可觀的營收。現在還太早說勝券在握，但我們正同時推進三到四個重要機會，有機會讓 Willow 從「已可商用供應」的產品，變成我們開始能帶來不錯營收的產品。所以我們正處在起步階段，後續還會有更多消息、更多消息。

Okay. And then finally you mentioned this briefly about the advances at the low end of the market in Gorilla Glass in China, could you talk about how that market is developing, how the strategy is developing for Corning and where you're seeing the most success?

好的。最後，你先前簡短提到在中國 Gorilla Glass 於低階市場的進展。你能談談那個市場如何發展、康寧的策略如何演進，以及你們在哪些地方看到最多的成功嗎？

Well the two areas for the low end that we tend to look at are in Chinese OEMs, the Chinese brands, as well as touch on notebook. And in both of those areas, we're seeing growing share for us. Part of it has to do with changes in our strategy. Part of it has to do with some excellent execution by our people on the ground.

我們看低階市場主要有兩個面向：中國 OEM、中國品牌，以及觸控筆電（notebook）。在這兩個領域，我們都看到市占在提升。部分原因是我們策略的調整。部分原因是我們在當地團隊的執行非常到位。

Also, part of it has to do with in the competition in China, what we're seeing is the emergence of players who want to use the highest quality components, and that is also helping us. So I'd like to attribute it all to changes in our strategy and better execution, and that's part of the story. But also part of the story is that the Chinese brands are trying to lift themselves up to world-class levels of quality and performance, and we're one of their first stops on that journey.

另外一部分原因是，在中國的競爭態勢中，我們看到一些新興業者希望採用最高品質的零組件，這也在幫助我們。我很想把功勞都歸於策略調整與更好的執行，這確實是故事的一部分。但故事的另一部分是，中國品牌正努力把自己提升到世界級的品質與性能水準，而我們是他們在這段旅程中的首選之一。

Excellent, thank you.

非常好，謝謝。

Ehud Gelblum, Citigroup.

Ehud Gelblum，花旗集團。

A couple of things. First of all, Jim, how about clarifications on some larger questions, just making sure on the P&L, you didn't give a core R&D number, I'm assuming that was equal to a GAAP RD&E number of $189 million, I just want to confirm that. And if you can also give us a sense as to how large the acquisitions to TRM, Samsung, et cetera, were this quarter so we have a -- peg the model hat would be helpful.

有幾點。首先，Jim，想請你釐清一些較大的問題，確認一下損益表（P&L）：你沒有給核心（core）研發的數字，我假設它等同於 GAAP 的 RD&E 數字 1.89 億美元，我只是想確認。另外也請你讓我們了解一下，本季對 TRM、Samsung 等的併購貢獻規模大概有多大，這樣我們好在模型裡有個基準（peg），會很有幫助。

On Gorilla is my larger question. Certainly doing very well on the volume side, can you give us a sense in terms of pricing. Last year obviously this time there was a big price step down, can you give us some sort of sense as to what the pricing did this quarter?

我更大的問題是關於 Gorilla。你們在出貨量方面顯然表現很好，能否談談價格面？去年這個時候價格明顯有一波大幅下調，能否給我們一些本季價格變化的概念？

And you mentioned that the margin in Advanced Optics is much lower than in Gorilla, can you give us a sense is it half the margin of Gorilla? Is it a third? Some way that we can correlate between the two because the two seem to be going in opposite directs right now. Thanks.

另外你提到先進光學（Advanced Optics）的毛利率比 Gorilla 低很多，能否給我們一個概念：是 Gorilla 的一半？還是三分之一？用某種方式讓我們能把兩者做關聯，因為目前看起來兩者走勢似乎相反。謝謝。

So on the latter question, I think Optical in the Specially Materials, the margin is -- gross margins are about half. In terms of Optical, TRM, we're not giving out exact numbers but for the quarter organic growth was greater than half of our increase. So that will help you at least get a line on it. I think R&D at core, I think we -- it is the same? And then Wendell, do you want to talk about Gorilla pricing?

就最後一個問題，我認為特殊材料（Specialty Materials）中的光學業務，毛利率大約是 Gorilla 的一半。至於光學、TRM，我們不提供精確數字，但本季的有機成長占我們增量的一半以上。所以至少能幫你抓出一條大致的線。我想核心研發（R&D at core）我們——應該是一樣的？然後 Wendell，你要不要談談 Gorilla 的定價？

Sure. Of course in terms of year over year, we're lapping the decreases from last year so those are going to be embedded. As we think right now about Gorilla price, and then I'll switch to margin, what we're seeing is more and more moderation.

當然。就年對年而言，我們正在對比去年那一波降價，所以那些影響會包含在比較基期裡。就目前我們對 Gorilla 價格的看法——接著我也會談毛利——我們看到的是價格變動愈來愈趨於溫和。

Part of that is helped by the fact that we've introduced Gorilla Glass 4 as a price premium product to Gorilla Glass 3, and Gorilla Glass 4's take up has been outstanding. People really want it, and they're willing to pay up for it. So Gorilla Glass 4 compared to Gorilla Glass 3 is a margin enhancer for us overall, even though it cost us a little bit more. The pricing is more than overcoming that increase in cost.

其中一部分得益於我們推出 Gorilla Glass 4，作為相對於 Gorilla Glass 3 的溢價產品，而 Gorilla Glass 4 的導入（take up）表現非常出色。客戶真的很想要，而且願意為此支付更高價格。因此，Gorilla Glass 4 相較 Gorilla Glass 3，整體而言對我們是毛利提升因子，儘管它的成本對我們來說略高一些。定價足以抵銷那部分成本增加。

That put together with our continued improvements in productivity and efficiency is what creates the type of net income up that you saw in this quarter. So we continue to be feeling quite positively about Gorilla gross margin enhancements as we work our way through this year.

再加上我們在生產力與效率上的持續改善，這就是你在本季看到淨利上升的原因。因此，隨著我們走過今年，我們對 Gorilla 毛利率的提升仍然相當正面。

Great. When [Fire] comes into play, you announced it earlier this year, do you expect that to come in later this year or next year, and does that eat in a little bit to Gorilla? Should we look at Fire and Gorilla combined? And when Fire comes in, does it have its own manufacturing issues that we'll have to deal with at that point? Lower gross margin until that manufacturing cycle proves in, or when Fire comes in, will it come in at the new Gorilla margins that you're creating now?

很好。當 [Fire] 開始發揮作用時，您今年稍早已宣布過，您預期它會在今年稍晚或明年導入？這會不會稍微侵蝕 Gorilla？我們是否應該把 Fire 和 Gorilla 合併來看？另外，當 Fire 導入時，它是否會有其自身的製造議題需要我們屆時處理？在該製造週期被驗證成熟之前，毛利率會較低嗎？或者 Fire 導入時，會以您現在正在建立的新 Gorilla 毛利率水準導入嗎？

So great questions. First, on Fire let's do timing. Fire is still relatively early in its creation cycle. And there are some products that would have the potential to launch this year in smaller volume. That would be our desire, to allow us to work through exactly the manufacturing question that you raised.

問題很好。首先，談 Fire 的時程。Fire 仍處於相對早期的開發週期。而有一些產品有機會在今年以較小的量推出。這會是我們的期望，讓我們能夠把您提出的製造問題確實跑過一遍、釐清到位。

However, we're getting very strong pull on Fire. So it could be that we will get at least requests to go earlier than what we would like. How to close the delta between desire and reality is one of life's great problems. So we're still in the midst of trying to figure that one out.

不過，我們看到市場對 Fire 的拉動非常強。所以也可能會出現至少有客戶要求我們比我們希望的更早推出。如何縮小期望與現實之間的落差，是人生的一大難題。因此我們仍在努力釐清並找出解法。

Now as far as business model goes, it is our intent that we will make more money when we introduce Fire as opposed to less money. Now, how that plays out on gross margin percent, versus do we get other types of income flows from this, will all depend on the business models that we ultimately set up with our customers. Like I said, this is still a product that is in its elementary school time.

至於商業模式方面，我們的意圖是：推出 Fire 時，我們要賺更多錢，而不是更少。至於這會如何反映在毛利率百分比上，或是我們是否能從中取得其他類型的收入來源，將取決於我們最終與客戶建立的商業模式。如我所說，這仍是一個處於「小學階段」的產品。

So we don't exactly have the business model we need to with our customers. What we do have is strong desire expressed for what the product does. So more to come. I'm sorry I don't have a little more right now. Maybe ask me again next time I'm online and I should be able to have more information for you, sir.

所以我們目前還沒有與客戶建立起所需的完整商業模式。我們已經看到的是，市場對這個產品功能的強烈需求。後續還會有更多進展。抱歉我現在沒有更多資訊。也許下次我在線上時您再問我，我應該就能提供更多資訊給您，先生。

I will, I appreciate it. If I could sneak one last in about the price declines in Q2, that Jim, you're saying are going to be better than Q1, what is that based on? Is it based on a move to larger screen sizes where you naturally charge more because the glass is thicker or are there some other dynamics giving you that confidence? Thank you.

我會的，謝謝，我很感激。如果我可以再偷偷問最後一個：關於第二季的降價幅度，Jim，您說會比第一季好，這是基於什麼？是基於往更大尺寸螢幕移動，因此因玻璃更厚而自然能收更高的價格？還是有其他動態讓您有這樣的信心？謝謝。

It's based on the fact that we've closed almost all of our Q2 pricing. So we know we're going to have it.

這是基於我們幾乎已經敲定了第二季所有的定價。所以我們知道會是那樣。

Right, but what was that based on that allowed to you do that?

了解，但您能做到這點的依據是什麼？

It's not based on generation size anymore. So it's based on what we've concluded with our customers compared to what Q1 pricing was.

不再是基於世代尺寸（generation size）。而是基於我們與客戶最終談定的結果，相較於第一季的定價水準。

I appreciate the time. Thanks, guys.

感謝您撥冗。謝謝各位。

Avi Silver, CLSA.

Avi Silver，CLSA。

Couple of questions on Display. So first of all, Jim, at what rate did you hedge the remaining 20% of volume? Is it also at 99 compared to the core for 2016?

關於顯示器（Display）有幾個問題。首先，Jim，您對剩餘 20% 的量是以什麼匯率做避險的？相較於 2016 年核心匯率（core）99，它也是在 99 嗎？

And then on Display pricing, the press release says that the volume grew high teens year on year, if I were to assume 18%, that would imply a 4% ASP decline. I think on the call you said it was down slightly. In that case, ASP would have been down more than the 2% to 3% decline. So I just want to understand whether the ASP, not like-for-like pricing was down within the 2% to 3% band in the March quarter, or was it maybe slightly below that band? And then I have a follow up.

另外關於 Display 定價，新聞稿說出貨量年增高十幾個百分點；如果我假設是 18%，那就意味著 ASP 下滑 4%。但我記得您在電話會議上說 ASP 只是小幅下滑。在那種情況下，ASP 的下滑幅度會大於 2% 到 3% 的降幅。所以我想了解的是：在 3 月季度，ASP（不是同規格對比的定價）是否仍落在 2% 到 3% 的區間內，還是可能略低於該區間？然後我還有一個追問。

So we don't give out specific price numbers. I can tell you that the price declines in quarter one were less than the price declines in quarter four. So we're not going to give exact numbers, what we're focused on is the trend.

我們不會提供具體的價格數字。我可以告訴你的是：第一季的降價幅度小於第四季的降價幅度。所以我們不會給出精確數字；我們關注的是趨勢。

The only thing you have to keep remembering when you look at our total numbers is the thick to thin conversion. Remember, that's why I talked in the script about my -- the heartbeat when you take that out. Remember we do give more of a lower price on thin to our product -- to our customers, so as they go from a higher percent on thick to a higher percent on thin, it makes our price declines look greater.

你在看我們總體數字時唯一要一直記得的是：厚轉薄（thick to thin）的轉換。記得這就是為什麼我在講稿裡提到，把那個因素拿掉後的「心跳」（heartbeat）。記得我們對薄玻璃會給客戶較低的價格——因此當客戶從較高比例的厚玻璃轉向較高比例的薄玻璃時，會讓我們的降價看起來更大。

But remember from a cost point of view, that's a benefit to us and also gives us more ability to sell more glass. So just by doing it on the total business, you sometimes get a misleading answer. But the heart beat is definitely going down when you take out that thinness difference.

但請記得，從成本角度來看，這對我們是有利的，也讓我們更有能力賣出更多玻璃。所以只用整體業務來看，有時會得到誤導性的結論。但把薄化差異拿掉之後，那個「心跳」確實是在下降。

Got it. On the hedge -- the remaining 20% that you hedged on 2016, was that also at 99? And then I have a follow up.

了解。關於避險——您對 2016 年剩餘 20% 做避險的部分，也是以 99 嗎？然後我還有一個追問。

No it was slightly higher than 99, but we're not giving out the exact number. We're going to continue to report the core at 99, and then in GAAP, you'll see the difference between the actual hedges and the core rate. But we think we did quite well.

不是，略高於 99，但我們不會提供確切數字。我們會持續以 99 來報告核心匯率（core），而在 GAAP 報表中，你會看到實際避險匯率與核心匯率之間的差異。但我們認為我們做得相當不錯。

Okay, great. And then a follow-up question for Wendell, a longer term question on TVs. Can you talk about the potential for experiences on TVs to improve? So you're making replacements like (inaudible) aging install base, but the flip side of that is consumers are spending time staring at smaller screens and less time staring at larger screens anecdotally. So I'm wondering whether there's something on the software services side that you see over the next couple years that can change experiences and ultimately stimulate long-term demands for LCD TV? Thank you.

好的，很好。接著給 Wendell 一個追問，是關於電視的長期問題。您能談談電視使用體驗改善的潛力嗎？您提到更換（換機）像是（聽不清）老化的裝機基礎，但另一方面，據我所知，消費者花更多時間盯著小螢幕、較少時間看大螢幕。所以我想知道，未來幾年在軟體服務端是否有什麼您看到的趨勢，能改變體驗，並最終刺激 LCD 電視的長期需求？謝謝。

I think that's a great question. And it's something that I work on with other opinion leaders and innovators in the space a lot. I'd say that we see really, really encouraging work exactly in the area that you are discussing.

我認為這是個很好的問題。而且這也是我經常與這個領域的其他意見領袖與創新者一起投入的方向。我會說，我們確實看到在你所談的領域有非常、非常令人鼓舞的工作進展。

And I think that the key blocker to bring in some of this to market is that access to the living room and some way to integrate the physical devices of like the TVs as well as your small screens with the software capability to be able to start to do some really interesting things, especially on cloud-based services, to really enhance the experience a lot.

我認為把其中一些帶到市場上的關鍵阻礙，在於如何進入客廳（living room）的入口，以及如何把像電視這樣的實體裝置，連同你的小螢幕裝置，與軟體能力整合起來，才能開始做一些非常有趣的事情，特別是在雲端服務上，能大幅提升體驗。

And we're starting to see really strong progress, and really new entrance to that space that you see the beginning of when you see these additions of the boxes or the sticks, or things like that to your physical device. That is the foot in the door that's going to create I think better experiences going forward. Because the one thing the small screen can't do is allow us to have a shared experience, which is really important to human behavior.

我們開始看到非常強的進展，也看到一些全新的參與者進入這個領域；你在看到這些加裝在實體裝置上的盒子（box）或棒狀裝置（stick）等產品時，就能看到這個趨勢的開端。我認為那就是打開大門的第一步，將在未來帶來更好的體驗。因為小螢幕做不到的一件事，是讓我們擁有共享的體驗，而這對人類行為非常重要。

And the best innovations I'm seeing in this space on software and use are all about that piece. It's not just about making a bigger screen, it's not just about having a more dramatic experience. It's about how do I enhance the shared nature of that larger screen? And there's some encouraging things happening. But you need to see some business models really slide into place before it happens.

而我在這個領域看到最好的創新——不論是軟體或使用情境——都圍繞著那一塊。不只是把螢幕做得更大，也不只是讓體驗更具戲劇性。而是：我該如何強化那個更大螢幕所帶來的「共享」特性？而且確實有一些令人鼓舞的進展正在發生。但在真正發生之前，你需要看到一些商業模式確實到位、順利落地。

Got it, thank you very much.

了解了，非常感謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

First a clarification, Wendell, I think when you were talking about the low end of covered glass especially in China, did I understand you correctly that recent share gains were more a function of the market coming to you or has Corning shifted its strategy or product portfolio to better address that well into the market?

先請教一點釐清，Wendell，我想你在談到覆蓋玻璃的低階市場、特別是在中國時，我是否理解正確：近期市占提升比較像是市場往你們這邊靠攏的結果？還是康寧已調整策略或產品組合，以更好地切入並服務那一塊市場？

Both. Both we had yet to introduce a true low-end product. We have them on the shelf. We're still just working through is it worth that market confusion or not? So we're going to measure twice, cut once.

兩者都有。一方面，我們之前還沒有推出真正的低階產品。現在產品已經備好、放在架上了。我們仍在評估：是否值得為了那個市場而造成市場認知上的混淆。所以我們會再三衡量、謹慎出手。

But we did shift our strategy in other ways. What it is we actually -- how do we work with those Chinese brands, what do we sell them? Do we sell them parts versus pure glass into the supply chain? As well as how do we work the actual Gorilla brand in China? So that is part of the story.

但我們也在其他方面調整了策略。也就是我們實際上——我們如何與那些中國品牌合作、我們賣給他們什麼？我們是把零組件賣進供應鏈，而不是只賣純玻璃？以及我們如何在中國經營 Gorilla 這個品牌？所以這也是故事的一部分。

But the other part of the story is, yes, the markets coming toward us as well. I don't know how to split which is our change strategy, our improved execution, and what's that the market is moving towards us. I don't know how to split those two in effect. But together what they're playing out in is climbing share for us.

但故事的另一部分是，沒錯，市場也正在往我們這邊靠攏。我不知道該如何拆分：哪些是我們策略改變、執行改善的成果，哪些是市場本身在往我們這邊移動。我不知道實際上該怎麼把這兩者切開來看。但兩者加總的結果，就是我們的市占在上升。

Great, thank you for the details. And then Jim, you talked about supply, demand in the LCD market for Corning with your capacity running at near full utilization and some idle capacity. Could you help us understand the relative size of the idle capacity perhaps compared to a year ago or to when you brought SCP in-house? Or perhaps asked in a different way, in what timeframe should we expect LCD-related CapEx to increase from the current maintenance levels?

很好，謝謝你提供細節。接著 Jim，你談到 LCD 市場的供需，以及康寧這邊產能接近滿載、同時也有一些閒置產能。你能否協助我們理解閒置產能的相對規模，例如相較於一年前、或相較於你們把 SCP 併入內部時？或者換個問法：在什麼時間範圍內，我們應該預期 LCD 相關資本支出會從目前的維持性水準開始增加？

So relative to CapEx, LCD CapEx is up this year versus last year, but it's driven by this heavy cycle of tank repairs, and we are completing two tanks that we had never turned on, there's a little bit of capital to that. But in terms of a big cycle for LCD capital, I don't anticipate that. In fact, after the heavy rebuild schedule this year, I expect it to go down.

就資本支出而言，LCD 的 CapEx 今年比去年高，但主要是因為這一輪槽窯（tank）維修的高峰期；另外我們也正在完成兩座之前從未點火啟用的槽窯，這部分也需要一些資本投入。但就 LCD 的大型資本支出循環來說，我不預期會出現。事實上，在今年這個較重的重建排程結束後，我預期會下降。

I think our utilization is up compared to when we did the CPM deal. We don't give out absolute percentages, and remember we did shut down some of our older Japanese capacity as part of this from a cost move. But we still have some capacity offline that we'll bring up at the appropriate time.

我認為我們的產能利用率，相較於我們做 CPM 交易時是提高的。我們不提供絕對百分比；而且請記得，作為成本調整的一部分，我們也關停了一些較老的日本產能。但我們仍有部分產能處於離線狀態，會在適當的時點把它拉升上來。

And so you said CapEx down next year, and then should we think of 2017 as potentially a year of increased LCD CapEx?

所以你說明年 CapEx 會下降，那我們是否可以把 2017 年視為 LCD CapEx 可能增加的一年？

It's a little early for me to comment on 2017 capital. But relative to our basic footprint, I'm not expecting big surges in capital for the generations of 8.5 and below. But ask me again in July, and I'll give you an update on 2017.

現在談 2017 年的資本支出還有點早。但就我們的基本產能版圖而言，我不預期在 8.5 代及以下世代會出現大幅的資本支出激增。不過你 7 月再問我一次，我會提供 2017 年的更新。

Great, thank you for taking my questions.

很好，謝謝你回答我的問題。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

One question for me, one more on Gorilla Glass. I think you said in the press release that your volumes went up about 20%, and if I look back at 10-K, you guys were up 23% in growth last fall of last year. So my understanding is this year's Q1 was an easier comp, and the comps get harder as the year goes on. Can you talk about how those year-over-year growth rates could compare to Q1 going forward and whether there's any cannibalization we have to think about within your good, better, best product strategy for the year? Thanks a lot.

我這邊一個問題，還是關於 Gorilla Glass。我想你在新聞稿中提到出貨量大約成長 20%，而如果我回頭看 10-K，你們在去年秋天的成長是 23%。所以我的理解是，今年第一季的比較基期較容易，而隨著年度往後走，比較基期會變得更難。你能談談未來各季的年增率相較於第一季可能會如何變化？以及在你們「好、更好、最好」的產品策略下，今年是否需要考慮任何同業相食（cannibalization）的情況？非常感謝。

So let me start on it and then Jim will try to pick up some (inaudible) help. So I think first we got to establish which level are we at. So in the sell in, what our brands sell in the retail, that tends to have a seasonal cycle to it that carries through the smart phone market and to their launches. In that we expect to have strong growth in for the market, and to have strong -- even stronger Gorilla growth into that part.

我先回答，然後 Jim 再補充一些（聽不清）協助。我想首先我們得先釐清我們在談哪一個層級。就 sell-in（品牌在零售端的銷售導入）而言，通常會有季節性循環，並且會隨智慧型手機市場及其新品上市節奏而延續。在這個層級上，我們預期市場會有強勁成長，而 Gorilla 的成長會更強。

Then Steven we go down to the what our shipments are level in any given quarter. For that, it gets much harder to predict. Because now we're at beginning end of a pretty large supply chain. And the behavior we see out of our big brands is they will build a lot in a quarter. We had some of that happen late last year, an undisclosed customer building a lot for a launch. And they want to make sure they've got enough glass to be able to make the phones and tablets or that type of equipment they want.

接著 Steven，我們再往下看我們在任何一個季度的出貨（shipments）層級。在這個層級就更難預測。因為我們位在一個相當龐大供應鏈的前端。而我們從大型品牌客戶看到的行為是：他們可能在某一季大量備貨、生產。去年底就發生過一些這樣的情況，有一位未揭露的客戶為了新品上市而大量拉貨。他們希望確保有足夠的玻璃，能夠生產他們想做的手機、平板或那類設備。

When they do that, we can have shipments that are much higher than the sell-in level. Vice versa on what we can also have is that as we get into a cycle where they will do a correction and reduce that in any given quarter. I think that we can anticipate that to continue. And that will impact our performance on any given quarter, and any given year over year for our shipment level.

當他們這麼做時，我們的出貨量可能會遠高於 sell-in 的水準。反過來也可能發生：當進入一個週期，他們會做庫存修正，在某一季降低拉貨。我認為這種情況會持續出現。而這會影響我們任何一季的表現，以及我們出貨層級在任何一年、任何季度的年增率。

But in the end, it doesn't matter so much do we get it in one quarter or the next quarter, as long as the sell-in continues to be strong and our position continues to strength there. All we're really talking about is whether we get it in the next couple quarters or the couple quarters after that assuming we continue to win other platforms as they turn over. Does that make sense?

但最終來說，我們是在這一季拿到、或下一季拿到，其實沒那麼重要；只要 sell-in 持續強勁、而我們在那裡的地位持續強化。我們真正討論的只是：在我們持續贏得其他平台、並隨著它們換代的前提下，我們是在接下來幾季拿到，或是再往後幾季才拿到。這樣說有道理嗎？

Yes, it does. And then within that context though, Wendell, are you -- would we expect cannibalization, or are you able to shift down enough grow that street volume into some of these other markets that it wouldn't be noticeable to us?

是的，有道理。不過在這個脈絡下，Wendell，你們——我們是否應該預期會有同業相食？或者你們能把部分成長轉移到其他市場，使得對我們來說不會那麼明顯？

So we're not seeing a lot of cannibalization, right now we're seeing the two product strategy that we have done to be basically in the direction of switching to GG4. But what we're saying to our customers is hey, if you want a real price competitive product or closer in price competitive product, then you-- here is GG3. And if you want the superior performance of GG4, this is the price you choose.

所以我們目前沒有看到太多同業相食；我們看到的是我們的雙產品策略，基本上是朝著轉換到 GG4 的方向。但我們對客戶的說法是：如果你想要真正具價格競爭力、或更接近價格競爭力的產品，那——這裡有 GG3。如果你想要 GG4 的更優異性能，那就是你要選擇的價格。

And we're having customers actually choose a mix. But now -- for now, at least, the penetration rate of GG4 is higher than what we expected. We originally expected it to only flow in on the highest end and that they'd stay with GG3 on some of their lower end. Right now, and this could change, right now, we're seeing a shift towards GG4.

而我們確實看到客戶會選擇一個組合搭配。但目前——至少目前——GG4 的滲透率比我們原先預期更高。我們原本預期它只會先導入在最高階機種，而在一些較低階機種上仍會使用 GG3。但現在（當然未來可能改變），我們看到正往 GG4 轉移。

And then of course Fire, when that comes is going to add yet another layer of complication to this. But overall I think it's all good.

然後當然還有 Fire，一旦那個發生，將會再為此增添另一層複雜性。但整體而言，我認為一切都很好。

Yes, that makes sense. Thank you very much.

是的，這很有道理。非常感謝。

Jim, did you have anything to add?

Jim，你有什麼要補充的嗎？

No, just a reminder, we did say our volume growth was up 20% in quarter one. Year over year it's going to be up in the mid-teens is what our guidance is. But when you look at consumption of our glass going into sell in, the percent is very similar in each quarter.

沒有，只是提醒一下，我們確實說過第一季的出貨量成長達 20%。年對年來看，我們的指引是將成長在 10% 多的中段。但當你看我們玻璃的消耗量進入 sell-in 的情況時，各季的百分比其實非常相近。

Right.

對。

So we've got time for one more question, John.

所以我們還有時間再問最後一個問題，John。

Simona Jankowski, Goldman Sachs.

高盛（Goldman Sachs）的 Simona Jankowski。

I had a clarification first, and then a couple of questions. On the clarification, I think you maintained your full-year demand expectation, but data points in PCs have been a little weakener in Q1. I was curious if you factor that in and if you see an offset on the TV side or something else?

我先釐清一點，然後再問幾個問題。關於釐清的部分，我想你們維持了全年需求的預期，但第一季 PC 的一些數據點稍微偏弱。我想了解你們是否已把這點納入考量，以及是否在電視端或其他方面看到抵消？

So we did factor it in, but television size has been a little bit better. And also for us, as customer make our product, they're using a little bit more glass per end device, which helps us out there. Their own efficiencies, particularly as they make ultra-high def. So we did factor in the lower IT into our forecast. But other factors allowed us to maintain it.

我們確實已把它納入考量，但電視尺寸表現稍微好一些。另外，對我們而言，客戶在使用我們的產品時，每台終端裝置所用的玻璃量略有增加，這也對我們有幫助。這與他們自身的效率提升有關，特別是在製造超高解析度產品時。所以我們已將較低的 IT 需求納入預測。但其他因素讓我們得以維持原先的預期。

And then two longer term questions, one of them is we're seeing a bit of a shift of panel demand into China. Can you comment on how you expect that transition to affect Corning, especially with some of our competitors moving some of their manufacturing base to China?

接著兩個較長期的問題，其中之一是我們看到面板需求有些轉向中國。你能否評論你預期這個轉移將如何影響康寧（Corning），尤其是一些競爭對手正把部分製造基地移到中國？

And then the second question is if you can update us on the Iris opportunity to your end, and if particular if there are any TVs at this point that you've been designed in to be on those announced at CES? And if you can guesstimate what percent of high end volumes you think will be able to adopt Iris.

第二個問題是，你能否向我們更新 Iris 對你們而言的機會，特別是目前是否已有任何電視採用你們的設計、並會出現在 CES 已公布的產品中？以及你是否能估算一下，你認為高階機種的出貨量中，大約有多少比例能採用 Iris？

So I'll start with China then let Wendell chime in. Just as a reminder, you're seeing our competitors make announcements. We are already on the ground with glass melting in China and have the capability of supplying from that as well as shipping in from Taiwan and Korea. So we think we're well positioned to meet the demand from new China facilities. Anything you want to add to that, Wendell?

我先談中國，然後再讓 Wendell 補充。提醒一下，你看到的是我們競爭對手的公告。我們已經在中國落地並進行玻璃熔融生產，也具備從當地供應的能力，同時也能從台灣與韓國出貨。因此我們認為自己已做好充分準備，以滿足中國新設廠的需求。Wendell，你還想補充什麼嗎？

Well I build on JIm's answer or earlier, too. In our gen 8.5 and below platform, our existing platforms, we feel really good about where we stand for the amount of capacity that we have. You may have finishing lines here and there in China, as you point out. But those tend not to have a big build to it.

我也延伸 Jim 的回答，或更早前的說法。在我們第 8.5 代及以下的平台、也就是我們既有的平台上，我們對目前的產能配置非常有信心。如你所說，你可能會在中國看到零星的後段加工線。但那類通常不會形成大規模的擴建。

I think that the only regional play that is worth us always keeping an eye on, is do we see any significant new generations come in China? And if that were to happen, we would of course be anybody's first port of call on the very large size pieces. And we'd have to work our way through to find, do we have an advantaged way to do that that would be good for our shareholders?

我認為唯一值得我們持續關注的區域性變數是：我們是否會在中國看到任何顯著的新世代產線導入？如果真的發生，我們當然會成為任何人在超大尺寸玻璃方面的第一選擇。而我們也必須進一步評估並找出：是否有一種具優勢的方式來推進，且對股東有利？

Now to Iris, I think you are -- you portrayed in very well. This is a high end ultra thin to start as a business. It's still once again very early days for this product. We're engaged across all the brands. There is interest in using glass. In that function of a guide plate. But it is still too early to call penetration.

至於 Iris，我認為你描述得很到位。這項業務一開始會定位在高階超薄產品。同樣地，這個產品目前仍處於非常早期的階段。我們與所有品牌都有接觸。市場對使用玻璃是有興趣的。在作為導光板（guide plate）的功能上。但現在要判斷滲透率仍為時過早。

And then how does the battle play out between glass and the two alternative materials that we're battling against? They have different pros and cons. But we're just in the middle of that fight, actually in the beginning steps of that fight. So it's too early to call at what round we win at.

至於玻璃與我們正在對抗的兩種替代材料之間的競爭會如何發展？它們各有優缺點。但我們其實正處於這場競爭的中段，甚至可以說才剛開始幾步。所以現在還太早判斷我們會在哪一回合勝出。

Great, thank you.

很好，謝謝。

Jim?

Jim？

Thanks, Ann. Just a couple of investor announcements. First of all, our annual shareholder meeting is this Thursday, and investors can listen to Wendell's speech on the web. And additionally, we'll be hosting investors in Corning, New York, on May 7, and I promise no snow. And then we'll be at the JPMorgan Conference in Boston on May 19.

謝謝，Ann。補充幾項投資人公告。首先，我們的年度股東會在本週四，投資人可以在網路上收聽 Wendell 的演講。此外，我們將於 5 月 7 日在紐約州康寧接待投資人，我保證不會下雪。接著我們會在 5 月 19 日出席波士頓的摩根大通（JPMorgan）會議。

Quick summary of the call, we entered 2015 with great momentum. Over the last couple of quarters, the heartbeat of price declines in our LCD business have been trending favorably, and we do expect this to continue. Our Optical Communications quarter one results were outstanding, and they are on track to deliver double-digit sales in earnings growth this year.

本次電話會議的快速摘要：我們以強勁動能進入 2015 年。過去幾季，我們 LCD 業務的價格下滑節奏呈現有利趨勢，我們也預期這種趨勢將持續。我們光學通訊第一季的表現非常出色，並正朝著今年實現營收與獲利雙位數成長的目標前進。

The end market for Gorilla Glass, Environmental Technologies is growing, and we expect to continue to grow with those markets. And finally, we're returning cash to shareholders at a crisp pace with our share repurchases. We feel really good about our terrific first-quarter results and are confident we can deliver another year of earnings per share growth in 2015. Ann?

Gorilla Glass 與環境技術（Environmental Technologies）的終端市場正在成長，我們預期將持續隨著這些市場一同成長。最後，我們透過庫藏股回購，以明快的步伐向股東返還現金。我們對第一季優異的業績感到非常振奮，並有信心在 2015 年再交出每股盈餘（EPS）成長的一年。Ann？

Thank you, Jim, and thank you all for joining us today. A playback of the call is available at 11:00 AM Eastern and will run until 5:00 PM Eastern on Tuesday, May 12. To listen dial 800-475-6701. The access code is 357164, the audio cast is available on our website during that time as well. John, that concludes our call, please disconnect all lines.

謝謝你，Jim，也謝謝各位今天的參與。本次電話會議的重播將於美東時間上午 11:00 提供，並持續至 5 月 12 日（週二）美東時間下午 5:00。收聽請撥 800-475-6701。存取碼為 357164，在此期間我們的網站也提供網路音訊直播回放。John，本次會議到此結束，請斷開所有線路。