康寧 (GLW) 2016 Q1 法說會逐字稿

Welcome to the Corning Incorporated quarter-one 2016 earnings results. It is my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations.

歡迎參加康寧公司（Corning Incorporated）2016 年第一季財報結果說明。我很高興將電話會議交給投資人關係事業部副總裁 Ann Nicholson。

Thank you, Sean, and good morning. Welcome to Corning's first quarter conference call. With me today is Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Senior Vice President and Chief Financial Officer; and Jeff Evenson, Senior Vice President and Chief Strategy Officer.

謝謝你，Sean，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；資深副總裁兼財務長 Tony Tripeny；以及資深副總裁兼策略長 Jeff Evenson。

Before we begin our formal comments, I would 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 risks, 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》（Private Securities Litigation Reform Act of 1995）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。相關因素已在本公司的財務報告中詳述。

You should also note that we will report our results using core performance measures. These core performance measures are non-GAAP measures. A reconciliation can be found on our website.

也請注意，我們將以核心績效衡量指標（core performance measures）來報告結果。這些核心績效衡量指標屬於非 GAAP 指標。對帳表可在我們的網站上查閱。

We have slides posting live on our website that are accompanying our formal comments, and they will be available on our website later this morning.

我們的網站上有與正式發言同步的投影片直播，並將於今天上午稍晚在網站上提供。

Now I'll turn the call over to Wendell.

現在我把電話會議交給 Wendell。

Thank you, Ann. Good morning, everyone.

謝謝你，Ann。各位早安。

As we said in this morning's press release, we are pleased that first-quarter sales in Display, Environmental, Specialty Materials, and Life Sciences met or exceeded expectations. Demand in Optical Communications was as strong as we expected. But deployment issues with new manufacturing software interrupted our cabling production and interfered with our ability to fill customer orders.

正如我們今早新聞稿所述，我們很高興顯示科技（Display）、環境科技（Environmental）、特殊材料（Specialty Materials）與生命科學（Life Sciences）第一季銷售達到或超出預期。光學通訊（Optical Communications）的需求強勁程度也符合我們的預期。但新製造軟體的部署問題中斷了我們的纜線生產，並影響我們履行客戶訂單的能力。

Now, we are well down the path to resolving these problems, but we estimate that they reduced first-quarter sales by approximately $100 million. The combination of reduced sales and spending to overcome the issues reduced first-quarter net income by about $40 million. Absent this, Optical Communications results would have been consistent with expectations. Even with this impact, however, core EPS was $0.28, consistent with consensus.

目前我們已在解決這些問題的道路上取得相當進展，但我們估計這使第一季銷售約減少 1 億美元。銷售下滑加上為克服問題所增加的支出，使第一季淨利約減少 4,000 萬美元。若無此影響，光學通訊的結果將與預期一致。即便有此影響，核心每股盈餘（core EPS）仍為 0.28 美元，與市場共識一致。

We told you coming into the year that we expected the first quarter to be the weakest. Looking ahead, we are encouraged by the sequential growth that is beginning across our businesses.

我們在進入今年時就告訴各位，我們預期第一季會是全年最弱的一季。展望未來，我們對各事業開始出現的逐季成長感到鼓舞。

We are also pleased with the progress we have made on our strategy and capital allocation framework. You will recall that our priorities are to focus our portfolio and utilize our financial strength to grow, return cash to our shareholders, and create significant value.

我們也對策略與資本配置架構所取得的進展感到滿意。各位應該記得，我們的優先事項是聚焦投資組合，並運用我們的財務實力來成長、回饋股東現金，並創造顯著價值。

As we shared with you in October, we expect to generate and deploy more than $20 billion through 2019. We will distribute more than $10 billion to our shareholders, and we will invest $10 billion to grow and to sustain our industry leadership in our focused portfolio of three core technologies, four manufacturing and engineering platforms, and five market access platforms.

如同我們在 10 月與各位分享的，我們預期到 2019 年將創造並部署超過 200 億美元。我們將向股東分配超過 100 億美元，並投資 100 億美元以推動成長並維持我們在聚焦投資組合中的產業領導地位；該投資組合包含三項核心技術、四個製造與工程平台，以及五個市場進入平台。

Recent successes include cash distributions, strategic transactions, product introductions, moderating pricing environment in Display, and our advancement of lowest cost manufacturing positions. Here are a few highlights in each area: We have distributed more than $2 billion to our shareholders since October. We completed a $1.25 billion accelerated stock repurchase program in January. During the remainder of the quarter, we distributed an additional $751 million through share repurchases. In February, we announced a 12.5% increase in our quarterly dividend, in line with our plan to increase dividends per share by more than 10% annually.

近期的成功包括現金分配、策略性交易、產品推出、顯示事業較為溫和的定價環境，以及我們在最低成本製造地位上的推進。以下是各領域的幾項重點：自 10 月以來，我們已向股東分配超過 20 億美元。我們在 1 月完成了 12.5 億美元的加速庫藏股回購計畫（accelerated stock repurchase program）。在本季剩餘期間，我們透過股票回購另外分配了 7.51 億美元。2 月，我們宣布將季度股利提高 12.5%，符合我們每年將每股股利提高超過 10% 的計畫。

We also initiated three transactions to focus our portfolio and advance our growth. In December, we announced the strategic realignment of Dow Corning. As a reminder, we plan to exchange Corning's 50% interest in Dow Corning Corporation for a subsidiary that will hold 40% ownership in Hemlock Semiconductor and $4.8 billion in cash. The $4.8 billion is approximately 30 times the equity earnings from Dow Corning's silicones business.

我們也啟動了三項交易，以聚焦投資組合並推進成長。12 月，我們宣布對 Dow Corning 進行策略性重整。提醒各位，我們計畫以康寧在 Dow Corning Corporation 的 50% 權益，交換一家子公司；該子公司將持有 Hemlock Semiconductor 40% 的所有權以及 48 億美元現金。這 48 億美元約相當於 Dow Corning 矽酮（silicones）事業股權收益的 30 倍。

We expect this realignment to be substantially tax-free and to create tremendous value for our shareholders. We have made excellent progress and continue to anticipate that this transaction will close by June.

我們預期此項重整在稅務上將大致免稅，並為股東創造巨大的價值。我們已取得極佳進展，並仍預期該交易將於 6 月前完成交割。

In January, we announced a joint venture with Saint-Gobain Sekurit to develop, manufacture, and sell lightweight automotive glazing solutions. Saint-Gobain is a leading global producer of automotive glazing.

1 月，我們宣布與 Saint-Gobain Sekurit 成立合資企業，以開發、製造並銷售輕量化汽車玻璃（automotive glazing）解決方案。Saint-Gobain 是全球領先的汽車玻璃製造商。

Corning will continue to produce and market Gorilla Glass to this JV and other glazers, retaining 100% ownership of the glass business. This venture allows us to manufacture and sell glazing solutions with a premier glass glazing company that enjoys an excellent reputation among car manufacturers. It also provides a low-cost path for us to scale Gorilla Glass glazing solutions globally.

康寧將持續向該合資企業及其他玻璃加工商生產並行銷 Gorilla Glass，同時保留玻璃事業 100% 的所有權。此合資讓我們能與一家在車廠間享有極佳聲譽的頂尖汽車玻璃公司共同製造並銷售玻璃解決方案。同時也為我們提供一條低成本途徑，將 Gorilla Glass 汽車玻璃解決方案在全球擴大規模。

Two weeks ago, we announced an agreement to acquire Alliance Fiber Optic Products for approximately $270 million, net of the cash acquired. We expect the acquisition to be accretive during 2016 and to offer cost, product and customer synergies. This acquisition will expand our market access and provide products that we can integrate into our solutions. For example, it will deepen our relationships with growing cloud data center customers, expand our access to OEM and Asian customers, and enhance product sets in our fiber-to-the-home and data center portfolios. We are excited to bring AFOP on board.

兩週前，我們宣布達成協議，將以約 2.7 億美元收購 Alliance Fiber Optic Products（扣除取得的現金後之淨額）。我們預期該收購將在 2016 年帶來增益（accretive），並提供成本、產品與客戶的綜效。此收購將擴大我們的市場觸及，並提供可整合至我們解決方案中的產品。例如，它將加深我們與成長中的雲端資料中心客戶的關係，擴大我們對 OEM 與亞洲客戶的觸及，並強化我們在光纖到府（fiber-to-the-home）與資料中心產品組合中的產品集合。我們很高興將 AFOP 納入團隊。

Turning to product introductions, earlier this month we announced Vibrant Corning Gorilla Glass, which adds value to Gorilla and supports our strategy to double Corning's revenue per mobile device. With Vibrant Corning Gorilla Glass, Acer and other leading device makers can dramatically expand their options for device design with individually customized multi-color high-resolution images on Corning's industry-leading cover glass solution. These features add value for consumers and increase our revenue per device.

談到產品推出，本月稍早我們宣布推出 Vibrant Corning Gorilla Glass，為 Gorilla 增加價值，並支持我們將每台行動裝置的康寧營收倍增的策略。透過 Vibrant Corning Gorilla Glass，宏碁（Acer）及其他領先裝置製造商可在康寧業界領先的覆蓋玻璃解決方案上，使用可個別客製的多色高解析影像，大幅擴展裝置設計選項。這些特性為消費者增加價值，並提升我們每台裝置的營收。

We also continue to leverage our competitive advantages and strong customer relationships in Display to stabilize returns. You will recall from our fourth-quarter conference call in January that 2015 was the display industry's most challenging year in the last five years. And the panel makers began reducing utilization in the back half to help return supply chain inventory to a healthier level.

我們也持續運用在顯示事業的競爭優勢與強健客戶關係，以穩定報酬。各位應記得我們在 1 月第四季電話會議中提到，2015 年是顯示產業過去五年中最具挑戰的一年。面板廠在下半年開始降低稼動率，以協助供應鏈庫存回到較健康的水位。

We also told you that, even in this difficult environment, we expected continued moderation in LCD glass pricing; and that is exactly what is playing out. After experiencing the smallest price decline in eight quarters during quarter four of 2015, our price declines in the first quarter equaled the best first-quarter price decline in five years. And we believe sequential price declines will further moderate in quarter two. We can now mark two years of moderate quarterly sequential price declines.

我們也告訴各位，即使在如此艱困的環境下，我們仍預期 LCD 玻璃價格跌幅將持續趨緩；而目前的發展正是如此。在 2015 年第四季經歷八個季度中最小的價格跌幅之後，我們第一季的價格跌幅等同於五年來最佳的第一季價格跌幅。我們相信第二季的逐季價格跌幅將進一步趨緩。我們現在可以記錄到已連續兩年出現溫和的逐季價格跌幅。

Finally, we enhanced our lowest cost positions through several moves to consolidate our manufacturing footprint. And our progress on reducing energy consumption and cost was recognized by the EPA, who named Corning an Energy Star partner for the third consecutive year.

最後，我們透過數項整併製造據點的措施，強化了我們的最低成本地位。而我們在降低能源消耗與成本方面的進展也獲得美國環保署（EPA）肯定，康寧連續第三年獲選為 Energy Star 合作夥伴。

So to summarize, we are making solid progress delivering on our new framework. We are creating significant value for shareholders by utilizing our financial strength both to enhance our focused portfolio by investing in growth and to distribute cash to shareholders.

總結來說，我們在落實新架構方面正取得紮實進展。我們運用財務實力，一方面透過投資成長來強化聚焦的投資組合，另一方面向股東分配現金，從而為股東創造顯著價值。

Now I will turn the call over to Tony who will review our first-quarter results and second-quarter outlook. Tony?

接下來我把電話會議交給 Tony，由他回顧我們第一季業績與第二季展望。Tony？

Thank you, Wendell, and good morning.

謝謝你，Wendell，大家早安。

We met expectations in Display, Environmental, Specialty Materials, and Life Sciences in the first quarter. However, as Wendell said, we experienced an issue in Optical Communications due to the implementation of new manufacturing software in our cabling operations. This interrupted production and seriously impacted our ability to meet customer demand in the quarter.

第一季我們在顯示、環境、特殊材料與生命科學等業務達到預期。然而，如 Wendell 所說，我們在光學通訊業務因纜線營運導入新的製造軟體而遇到問題。這中斷了生產，並嚴重影響我們在本季滿足客戶需求的能力。

The estimated impact to sales was about $100 million. The lower sales and additional cost to address these issues reduced net income by about $40 million. As Wendell said, absent this issue, our Optical Communications business would have met expectations.

對銷售額的估計影響約為 1 億美元。較低的銷售額以及為解決這些問題而增加的成本，使淨利約減少 4,000 萬美元。如 Wendell 所說，若沒有這個問題，我們的光學通訊業務本可達到預期。

We have been working with customers to minimize the impact to their operations, and are making steady progress towards restoring production. We are confident that we will resolve the software implementation issue during the second quarter. The financial impact in Q2 will be much smaller than Q1, and we expect to make up a good portion of the missed sales during the second half of 2016.

我們一直與客戶合作，以將對其營運的影響降到最低，並正穩步推進以恢復生產。我們有信心在第二季解決軟體導入問題。第二季的財務影響將遠小於第一季，我們預期在 2016 年下半年補回相當一部分未達成的銷售。

Now let's get into the first-quarter financials. As a reminder, these are core results.

現在我們來看第一季財務數據。提醒一下，以下為核心（core）結果。

Sales in the quarter were $2.2 billion, down 11% versus last year. Without the software implementation issue in Optical Communications, we estimate the sales would have been down approximately 6%, driven by lower volume and pricing in Display, but in line with expectations. Corporate gross margin was 41% and in line with expectations.

本季銷售額為 22 億美元，較去年下降 11%。若不計光學通訊的軟體導入問題，我們估計銷售額約下降 6%，主要由顯示業務的出貨量與價格下滑所致，但仍符合預期。公司整體毛利率為 41%，符合預期。

SG&A and RD&E costs were relatively flat to Q1 of 2015 at $309 million and $109 million, respectively. Our effective tax rate for the quarter was 14% and lower than expected due to lower profits in Optical Communications, which incur a tax rate above the corporate average.

SG&A 與 RD&E 成本相較於 2015 年第一季大致持平，分別為 3.09 億美元與 1.09 億美元。本季有效稅率為 14%，低於預期，原因是光學通訊獲利較低，而該業務適用的稅率高於公司平均。

Net income was $340 million and lower than last year. The lower year-over-year earnings reflect the lower volume and pricing in Display, and also the software implementation issue in Optical. EPS was $0.28 and met expectations. Now, these results are core.

淨利為 3.40 億美元，低於去年。年對年獲利下滑反映顯示業務出貨量與價格下降，以及光學業務的軟體導入問題。每股盈餘（EPS）為 0.28 美元，符合預期。另外，這些結果為核心（core）結果。

In Q1, our GAAP results were significantly lower than our core results, driven almost entirely by the mark-to-market accounting treatment on our currency hedge contracts. I would like to provide a bit of context.

第一季我們的 GAAP 結果顯著低於核心結果，幾乎完全是由於我們的外匯避險合約採用按市價評價（mark-to-market）的會計處理所致。我想提供一些背景說明。

As most of you know, we sell LCD glass in yen, and a 1-point move in the exchange rate impacts net income and cash flow by about $23 million annually at the current exchange rate. We enter into currency hedge contracts, predominately yen, to mitigate the impact of changes in currency exchange rates on our earnings and cash flow. By hedging, we increase the predictability of our results, and are confident that we can achieve our financial goals.

如各位多數人所知，我們以日圓銷售 LCD 玻璃，在目前匯率下，匯率每變動 1 點，每年對淨利與現金流的影響約為 2,300 萬美元。我們會簽訂外匯避險合約（以日圓為主），以降低匯率變動對獲利與現金流的影響。透過避險，我們提高結果的可預測性，並有信心達成財務目標。

We are very pleased with the results of our hedging program and the economic certainty it delivers. Since the inception of this strategy, we have settled hedge contracts and received cash totaling $1.1 billion that offsets much of the decline in Display's earnings due to the weaker yen. We recently increased our hedge coverage, which further reduced our risk and increased our confidence in achieving our financial goals.

我們對避險計畫的成果及其帶來的經濟確定性非常滿意。自採行此策略以來，我們已結算避險合約並收到合計 11 億美元現金，抵銷了因日圓走弱而導致顯示業務獲利下滑的很大一部分。我們近期提高了避險覆蓋率，進一步降低風險並提升達成財務目標的信心。

We have hedged 70% of our projected yen exposure through 2022 at a blended rate of approximately JPY106 per $1. For any investor who has been worried that the weakening yen could negatively impact our Business, hedging earnings and cash flows through 2022 substantially mitigates that concern.

我們已以約每 1 美元兌 106 日圓的加權平均匯率，對 2022 年前預估日圓曝險的 70% 進行避險。對於擔心日圓走弱可能對我們業務造成負面影響的投資人而言，將獲利與現金流避險至 2022 年，已大幅緩解此疑慮。

Now let's move from the economic impact of our hedging program to GAAP accounting. GAAP requires earning translation hedge contracts settling in future periods to be marked to market and recorded at their current value.

接下來我們從避險計畫的經濟影響，轉到 GAAP 會計處理。GAAP 規定，將於未來期間結算的獲利換算避險合約必須按市價評價，並以其當前價值入帳。

In other words, under GAAP accounting, each quarter we are required to revalue all of our existing contracts at the quarter-end forward rates and record the difference in value from the prior quarter through the P&L as unrealized gain or loss. This requirement results in significant GAAP earning volatility if the exchange rate changes from quarter to quarter.

換言之，在 GAAP 會計下，每一季我們都必須依季末遠期匯率重新評價所有既有合約，並將相較前一季的價值變動，透過損益表（P&L）認列為未實現損益。若匯率在季度間變動，這項規定會造成 GAAP 獲利出現顯著波動。

Given the size of our hedge portfolio, these adjustments can be large. For example, in Q3 and Q4 of 2014, we had large unrealized non-cash gains after tax of $431 million and $410 million, respectively, as the yen weakened. In the first quarter this year, the yen sharply strengthened and we had a $599 million unrealized non-cash mark-to-market loss. Our GAAP results will continue to see this volatility when the yen rate moves.

鑑於我們避險投資組合的規模，這些調整可能相當可觀。例如，2014 年第三季與第四季，隨著日圓走弱，我們分別出現稅後 4.31 億美元與 4.10 億美元的大額未實現非現金收益。而今年第一季日圓大幅走強，我們出現 5.99 億美元的未實現非現金按市價評價損失。當日圓匯率波動時，我們的 GAAP 結果仍將持續出現此類波動。

Now, to be clear, the amount of hedge contracts we settle in any given quarter is designed so the cash received or paid on the contracts substantially offset the change in Display's translated yen earnings and cash flow in that quarter. Our core reporting convention is designed to convey this matching and to simplify comparisons of underlying business trends. Now, for investors who have additional questions, Ann and Stephen are available after the call.

需要澄清的是，我們在任何一季結算的避險合約金額，都是設計用來使合約收付的現金，能在該季大幅抵銷顯示業務以日圓計價獲利與現金流換算後的變動。我們的核心報導慣例旨在呈現這種配比關係，並簡化對基本業務趨勢的比較。若投資人還有其他問題，Ann 與 Stephen 會在會後提供協助。

Also in our GAAP earnings for the first quarter are charges of about $109 million pre-tax associated with reducing our cost structure, enabling us to enhance our cost leadership position. We anticipate additional charges of approximately $40 million for the remainder of the year. We estimate that the full-year cash impact will be $40 million, and the annualized savings will be $50 million. So that is our first quarter from an overall P&L perspective.

此外，我們第一季 GAAP 獲利中包含約 1.09 億美元的稅前費用，與降低成本結構相關，使我們得以強化成本領先地位。我們預期今年剩餘期間還會有約 4,000 萬美元的額外費用。我們估計全年現金影響為 4,000 萬美元，年化節省為 5,000 萬美元。以上是從整體損益表（P&L）角度對第一季的說明。

Now let's look at the detailed segment results, beginning with Display Technologies. As I described in the January call, there was a significant inventory buildup in the supply chain during the back half of 2015 because the industry overestimated retail demand. We expected panel maker utilizations to decline sequentially in the first quarter in reaction to falling panel prices and a weaker end market, allowing the supply chain to reduce inventory. We expected this to result in sequential glass demand being down mid- to high-single digits.

接下來我們看各事業部的詳細結果，先從顯示科技（Display Technologies）開始。如我在一月的電話會議中所述，2015 年下半年供應鏈出現顯著庫存累積，因為產業高估了零售需求。我們預期面板廠在第一季會因面板價格下跌與終端市場疲弱而連續性降低稼動率，讓供應鏈得以去化庫存。我們預期這將導致玻璃需求較前一季下降中到高個位數百分比。

Now, despite this very tough environment, we expected Q1 prices to decline moderately sequentially, and that is exactly what happened. Panel makers reduced utilization and panel price declines improved to low-single digits in March. Weeks of inventory ended the quarter in a healthier position, the glass market was down mid-single digits, our volume was down mid-single digits sequentially, and price declines were moderate, as expected, matching the smallest sequential first-quarter decline in five years.

儘管環境非常艱困，我們仍預期第一季價格將較前一季溫和下滑，而實際情況正是如此。面板廠降低稼動率，且面板價格跌幅在三月改善至低個位數百分比。庫存週數在季末回到較健康水位，玻璃市場下滑中個位數百分比，我們的出貨量較前一季下滑中個位數百分比，價格下滑幅度溫和，符合預期，並創下五年來第一季最小的季對季跌幅。

Display sales were $829 million and net income was $223 million. Now, during the quarter, we secured the remainder of our 2016 volume under customer agreement, helping us maintain stable share, which, in turn, enables us to be more efficient in planning, manufacturing and reducing cost.

顯示事業銷售額為8.29億美元，淨利為2.23億美元。此外，在本季期間，我們在客戶協議下鎖定了2016年剩餘的出貨量，有助於我們維持穩定的市占；進而讓我們在規劃、生產製造以及降低成本方面更有效率。

Let's move to Optical Communications. Q1 sales were $609 million, down 13% versus last year, and below our expectations. Net income was down [64%] versus last year, primarily driven by lower sales volume and additional cost associated with software implementation issues. We expect a much smaller impact to sales and profits in Q2, and to resolve these issues during the second quarter.

接著談光學通訊。第一季銷售額為6.09億美元，較去年下滑13%，且低於我們的預期。淨利較去年下降[64%]，主要是因銷售量較低，以及與軟體導入問題相關的額外成本所致。我們預期第二季對銷售與獲利的影響將小得多，並在第二季期間解決這些問題。

In Environmental, Q1 sales were $264 million, down 6% versus last year, but better than the 10% decline that we expected. Stronger-than-expected demand for light-duty substrates drove the beat, as growth in North America and China produced record light-duty substrate sales.

在環境事業方面，第一季銷售額為2.64億美元，較去年下滑6%，但優於我們預期的10%降幅。輕型載具用載體（substrates）需求強於預期帶動表現超出預期，北美與中國的成長使輕型載具用載體銷售創下新高。

Segment sales are down year over year due to continued weakness in the US and Chinese heavy-duty truck markets, as expected. Truck production in North America is down after a two-year peak, and China's production is also expected to be down for the second year, driven by economic weakness. As a result, year-over-year profitability was down for the segment, in line with expectations.

如預期所示，由於美國與中國重型卡車市場持續疲弱，該事業部門銷售額年減。北美卡車產量在連續兩年高峰後下滑，而中國在經濟疲弱帶動下，預期產量也將連續第二年下滑。因此，該事業部門的年對年獲利能力下滑，符合預期。

Now, during the quarter we also made important progress on pioneering a new mobile emission control category that is not yet reflected in our sales. Let me explain. Euro 6c, starting in 2017, introduces real-world driving emission standards, and requires an order of magnitude reduction in particulates generated by gasoline direct injection engines, or GDI.

另外，本季我們在開創一個尚未反映於銷售的新型行動排放控制類別方面，也取得了重要進展。我來說明一下。自2017年起，Euro 6c導入實際道路行駛排放標準，並要求汽油缸內直噴引擎（GDI）所產生的微粒排放降低一個數量級。

GDI represents 23% of the global market now, and it is growing at a 17% rate. Today, none use a filter. The 2017 regulation will require, for the first time, a filter solution, and we are well positioned to lead.

目前GDI占全球市場的23%，並以17%的速度成長。目前尚無採用濾清器。2017年的法規將首次要求濾清器解決方案，而我們具備領先的有利位置。

We made progress in the first quarter by winning several new platforms designed to meet the upcoming Euro 6c regulation. Since the filter is used in addition to products that we already sell, Euro 6c increases our total sales opportunities for GPF vehicles by a factor of 3 to 4.

第一季我們透過贏得數個為符合即將上路的Euro 6c法規而設計的新平台，取得進展。由於該濾清器是在我們既有銷售產品之外額外搭配使用，Euro 6c使我們在GPF車款上的整體銷售機會增加至原來的3到4倍。

Moving on to Specialty Materials, performance was in line with expectations. As expected, Gorilla Glass volume was down sequentially and versus a strong Q1 2015.

接著談特殊材料，表現符合預期。如預期，Gorilla Glass出貨量較前一季下降，且相較於2015年第一季的強勁表現亦下滑。

As a reminder, comparing year-over-year Gorilla Glass growth rates in individual quarters is challenging because the volume depends on when the supply chain is building in preparation for new product launches, and the timing of OEM production ramps varies year to year. Last year, our Q1 volume was stronger because the supply chain was building, whereas this year we do not expect production ramps until later in the year.

提醒一下，逐季比較Gorilla Glass的年對年成長率具有挑戰性，因為出貨量取決於供應鏈為新產品上市做準備而進行備貨的時點，而OEM的量產爬坡時程每年也不同。去年第一季我們的出貨量較強，因供應鏈正在備貨；而今年我們預期要到較晚些時候才會出現量產爬坡。

Advanced optics sales were consistent with last year. In total, segment sales were $227 million, down 17%. Net income was $32 million, down 30% versus last year, on the lower sales.

先進光學產品銷售與去年持平。整體而言，該事業部門銷售額為2.27億美元，下滑17%。淨利為3,200萬美元，因銷售較低而較去年下滑30%。

In Life Sciences, Q1 sales were $204 million and met expectations. Net income was $18 million, down $1 million versus last year. First-quarter gross equity earnings from Dow Corning were $58 million and exceeded expectations of $45 million.

在生命科學方面，第一季銷售額為2.04億美元，符合預期。淨利為1,800萬美元，較去年減少100萬美元。第一季來自Dow Corning的權益法投資收益毛額為5,800萬美元，高於我們預期的4,500萬美元。

Let's turn to our balance sheet and cash flow. We ended the quarter with $3.5 billion of cash, including approximately $1.1 billion in the United States. We expect full-year operating cash flow to be relatively consistent with last year. The first quarter is typically our lowest quarter of the year, and Q1 adjusted operating cash flow was approximately $110 million. Capital spending was $270 million.

接著看資產負債表與現金流。本季末現金為35億美元，其中約11億美元在美國。我們預期全年營運現金流將與去年大致一致。第一季通常是全年最低的一季，第一季調整後營運現金流約為1.10億美元。資本支出為2.70億美元。

Now for the outlook -- we expect second-quarter sales to grow sequentially in all of our businesses, except Environmental, which will be down slightly, but consistent with the second quarter of 2015. Let's begin with Display. For the full year, we continue to expect the overall glass market, measured in square feet, to be up mid-single digits, and for the retail market to be up 8% to 10%.

接著談展望——我們預期第二季除環境事業外，各事業的銷售額皆將較前一季成長；環境事業將小幅下滑，但與2015年第二季一致。先從顯示事業開始。就全年而言，我們仍預期以平方英尺衡量的整體玻璃市場將呈現中個位數成長，而零售市場將成長8%至10%。

While it is early in the year, we see some puts and takes that net out neutrally relative to our initial expectations for the year. Preliminary data indicates that TV unit growth might be a little less than our 2% expectation, but that is offset by early evidence that diagonal screen size will increase by more than our 1.5-inch expectation.

雖然現在仍是年初，但我們看到一些正負因素相互抵銷後，整體與我們年初的預期大致持平。初步數據顯示，電視出貨量成長可能略低於我們預期的2%，但早期跡象也顯示螢幕對角尺寸的增加幅度可能高於我們預期的1.5吋，因而抵銷影響。

The outlook for handheld and IT is lower than our initial expectations, but those segments are a relatively small part of the overall Display glass market. Handheld and IT play a bigger role in our Specialty Materials segment, which I will address in a minute.

手持裝置與IT的展望低於我們最初的預期，但這些區塊在整體顯示玻璃市場中占比相對較小。手持裝置與IT在我們的特殊材料事業中扮演更重要的角色，我稍後會說明。

We begin the second quarter with healthier supply chain inventory, and panel makers are increasing utilizations to meet demand for the second-half retail season. We expect glass market and our volume to be up high-single digit sequentially in the second quarter.

我們以較健康的供應鏈庫存水位進入第二季，面板廠正提高稼動率以滿足下半年零售旺季需求。我們預期第二季玻璃市場及我們的出貨量將較前一季成長高個位數。

We expect our LCD glass prices to decline moderately sequentially, and be more moderate than Q1. We are very pleased with this more stable environment.

我們預期LCD玻璃價格將較前一季溫和下滑，且降幅將比第一季更為溫和。我們對這個更穩定的環境感到非常滿意。

As we have previously explained, we expect this more favorable pricing environment to continue and maybe even improve, for two primary reasons. First, the financial situation of our competitors continues to indicate they cannot continue historical price declines and remain profitable. And second, as we said before, we believe that glass supply and demand will remain balanced despite occasional dips in panel demand.

如同我們先前所說，我們預期這個較有利的定價環境將持續，甚至可能改善，主要有兩個原因。第一，競爭對手的財務狀況持續顯示，他們無法在維持獲利的同時延續過去的價格下滑幅度。第二，如同先前所述，我們相信即使面板需求偶有下滑，玻璃供需仍將維持平衡。

We are keeping capacity off-line to match our supply to our demand. Other glass suppliers have said publicly that they have levers to take similar actions. For these and other reasons, we continue to believe that sequential pricing will be better for us going forward.

我們持續讓部分產能維持離線，以使供給與需求相匹配。其他玻璃供應商也曾公開表示，他們有手段採取類似行動。基於這些及其他原因，我們仍相信未來逐季定價將對我們更有利。

Now moving to Optical Communications, for the second quarter we expect sales to be up more than 20% sequentially. Compared to last year, we expect sales to be down mid- to high-single digits. Two components of lower sales versus last year are: sales impact of $20 million to $40 million from the software implementation issues, and last year's record second quarter included some service-oriented business that does not repeat.

接著談光學通訊，第二季我們預期銷售額將較前一季成長超過20%。與去年相比，我們預期銷售額將下滑中至高個位數。相較去年銷售較低的兩個因素包括：軟體導入問題對銷售造成2,000萬至4,000萬美元的影響，以及去年創紀錄的第二季包含部分以服務為導向、今年不會重複的業務。

For the full year, we previously guided Optical Communications sales up in the mid-single digits, but now expect sales to be up low-single digits with the change due to the software implementation issues. Demand in carrier and enterprise is as strong as we expected, and we plan to recover a portion of the missed sales from the first half of the year. We expect sales in Optical Communications to be up more than 10% in the back half of 2016 versus last year.

就全年而言，我們先前指引光學通訊銷售額將成長中個位數，但目前因軟體導入問題而調整為成長低個位數。電信營運商與企業端需求如我們預期般強勁，我們計畫追回上半年部分流失的銷售。我們預期2016年下半年光學通訊銷售額將較去年成長超過10%。

Now turning to Environmental, we see continued strength in the auto market, but expect ongoing weakness in the heavy-duty truck market in North America and China to continue. We expect second-quarter Environmental sales to be consistent with 2015.

現在轉到環境科技（Environmental）業務，我們看到汽車市場持續強勁，但預期北美與中國的重型卡車市場疲弱仍將延續。我們預期第二季環境科技銷售額將與2015年一致。

In Specialty Materials, we expect second-quarter Gorilla Glass volume to grow both sequentially and year over year. As a result, we expect Specialty Materials sales to be up low-single digits in Q2 versus 2015.

在特殊材料（Specialty Materials）方面，我們預期第二季Gorilla Glass出貨量將在季比與年比皆成長。因此，我們預期第二季特殊材料銷售額相較2015年將呈現低個位數成長。

For the full year, as I said earlier, the handheld and IT retail market outlook for 2016 has weakened, which impacts sales of Gorilla Glass. We now expect sales growth in Specialty Materials will be in the high or the mid- to high-single digits.

就全年而言，如我先前所說，2016年手持裝置與IT零售市場展望已轉弱，這會影響Gorilla Glass的銷售。我們目前預期特殊材料的銷售成長將落在高個位數，或中到高個位數區間。

On the cost side, we experienced a power outage in one of our glass technologies facilities at the end of March. We quickly recovered from the incident to meet customer shipments across all product lines. We expect cost associated with recovery and repair expense to negatively impact gross margin percent and profitability in Specialty Materials in the second quarter.

在成本方面，3月底我們其中一座玻璃技術（Glass Technologies）廠區發生停電。我們迅速自該事件中恢復，以滿足所有產品線的客戶出貨。我們預期復原與維修相關成本將在第二季對特殊材料的毛利率百分比與獲利能力造成負面影響。

In Life Sciences, we expect Q2 sales to be up low-single digits versus last year, despite drag from the weaker euro. We expect gross margin to improve sequentially in Q2. Gross margins expand with growing volume in Display and higher sales in Optical Communications. The expansion would have been greater except for the impact of the power outage.

在生命科學（Life Sciences）方面，儘管歐元走弱帶來拖累，我們預期第二季銷售額相較去年將呈現低個位數成長。我們預期第二季毛利率將較第一季改善。隨著顯示科技（Display）出貨量成長，以及光學通訊（Optical Communications）銷售提高，毛利率將擴張。若非停電事件的影響，毛利率擴張幅度本可更大。

In total, we expect gross margins to be in the 41% to 42% range. We expect further gross margin expansion in the third quarter.

整體而言，我們預期毛利率將落在41%至42%的區間。我們預期第三季毛利率將進一步擴張。

SG&A and RD&E will be approximately 14% and 8% of sales, respectively. We expect other income/other expense to be a net expense of approximately $55 million.

銷售、一般及行政費用（SG&A）與研發及工程費用（RD&E）分別約占銷售額的14%與8%。我們預期其他收入／其他費用將為淨費用約5,500萬美元。

And we expect Q2 equity earnings to be between $50 million and $70 million, depending on the closing date of the Dow Corning strategic realignment. Once we close, we will no longer recognize equity earnings from Dow Corning's silicones business; therefore, an earlier closing date corresponds to the lower end of our estimated range. We will update you more precisely when the transaction closes.

我們預期第二季權益法收益將介於5,000萬至7,000萬美元之間，取決於Dow Corning策略性重整交易的結案日期。一旦完成結案，我們將不再認列Dow Corning矽利康（silicones）業務的權益法收益；因此，結案日期越早，對應我們估計區間的較低端。交易結案時，我們會更精確地向各位更新。

We expect our effective tax rate for 2016 to be in the range of 15% to 16%.

我們預期2016年的有效稅率將落在15%至16%的區間。

So that concludes our outlook for the second quarter. To summarize, in the first quarter we met or exceeded expectations in most of our businesses, and we expect strong sequential growth in the second quarter. We made great strides delivering on our four-year plan to focus our portfolio and utilize our financial strength to grow, return cash to our shareholders, and create significant value.

以上為我們對第二季的展望。總結而言，第一季我們在多數業務達成或超越預期，且我們預期第二季將有強勁的季比成長。我們在推動四年計畫方面取得重大進展：聚焦投資組合、運用財務實力以成長、回饋股東現金，並創造顯著價值。

Ann?

Ann？

Thank you, Tony. Sean will now open the lines for questions.

謝謝你，Tony。接下來Sean將開放電話線供提問。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Our first question will come from the line of Patrick Newton with Stifel Nicolaus. Please go ahead.

我們的第一個問題來自Stifel Nicolaus的Patrick Newton。請開始提問。

Yes, Wendell, Tony, Jeff, thank you for taking my questions. Number one is given the expected close of the Dow JV in the current quarter could you elaborate a little bit further on your intentions with the $4.8 billion in proceeds?

是的，Wendell、Tony、Jeff，謝謝你們回答我的問題。第一個問題是，鑑於Dow合資案預期將於本季完成結案，你們能否進一步說明對48億美元交易所得款項的規劃意圖？

I think that investors have varying opinions of the use of cash within your capital allocation framework, and the pace at which it can be harnessed. So at a minimum, should we anticipate a buyback to offset dilution from the loss of equity earnings? And then given the substantially tax-free transaction are there any structural timing issues that prevent the immediate access to the proceeds?

我認為投資人對於在資本配置架構下如何運用現金，以及能以多快速度加以運用，有不同看法。因此，至少我們是否應預期你們會進行庫藏股回購，以抵銷因不再認列權益法收益所造成的稀釋？另外，鑑於這筆交易在稅務上幾乎免稅，是否存在任何結構性或時點上的問題，會使得你們無法立即取得這些款項？

Patrick, good morning. Let me take that question. I think that from an overall standpoint, let me first start about the timing of the transaction, and we expect it to close sometime during this quarter. We are on track. We have made a lot of progress with everything that needs to get done, we feel pretty good about that.

Patrick，早安。我來回答這個問題。整體而言，我先從交易時點談起：我們預期會在本季某個時間點完成結案。目前進度如期。我們在所有需要完成的事項上已取得很大進展，對此我們感覺相當良好。

We have said all along that when we do close that we would discuss more what we do plan to do from a cash standpoint. I think it is reasonable to assume that over a period of time, as we make this transaction, that we look at offsetting the dilution from no longer having the equity earnings -- excuse me, that we offset the dilution on the equity earnings at some point in time although we're not actually talking about a very specific timing on that.

我們一直都說，等到完成結案時，我們會再更進一步說明在現金運用方面的計畫。我認為合理的推論是，隨著這筆交易在一段時間內完成，我們會在某個時間點考量抵銷因不再有權益法收益而造成的稀釋——抱歉，是在某個時間點抵銷權益法收益的稀釋，儘管我們目前並未談到非常明確的時點。

In terms of the cash availability, as we mentioned, from an overall standpoint there are restrictions relative to the cash availability, but that is cash that we need to control and manage internally. From an investor standpoint, if we use the cash to invest in the business then we're able to offset that with cash somewhere else. So for example, if we were to make an acquisition that we could use cash from that and that would offset cash in another place. So from an overall standpoint, that is how we are thinking about the Dow Corning transaction.

至於現金可用性，如我們所提，整體而言現金可用性確實存在一些限制，但那是我們需要在內部控管與管理的現金。從投資人的角度來看，如果我們用這筆現金投資於業務，我們可以在其他地方以現金加以對沖。例如，如果我們進行一項併購，我們可以使用那裡的現金，並在另一處以現金相互抵銷。因此，整體而言，這就是我們對Dow Corning交易的思考方式。

So, Patrick, a little bit shorter version, after we close we will tell you. Okay? Until then, give us some time to not count our chickens before they are hatched, and then we will be really clear on how we think about our overall capital allocation plan in terms of our total availability of cash for the Company overall. All right?

所以，Patrick，用更簡短的版本來說：結案之後我們會告訴你。好嗎？在那之前，請給我們一些時間，別在小雞孵化前就先數雞，然後我們會非常清楚地說明我們如何看待整體資本配置計畫，以及就公司整體而言可動用現金的總量。好嗎？

Great, thank you. And as a follow-up, Tony, you talked about recent strengthening in the yen, you talked about how your yen hedging practices have removed some of the volatility. I am curious, if you are looking at using the current strengthening of the yen to bring your total hedge rate in the 2016 to 2022 timeframe to 99% relative to the average of 106% because that would remove any need to change the core reporting convention at some point in the future?

很好，謝謝。另外追問一題，Tony，你提到近期日圓走強，也提到你們的日圓避險作法已降低部分波動。我想了解的是，你們是否考慮利用目前日圓走強的情況，將2016到2022年期間的整體避險比率拉到99%（相對於106%的平均水準），因為那樣就能消除未來某個時間點需要更改核心報導慣例的必要性？

Patrick, that is a great question. I think we are always looking at where the yen is, thinking about when we have opportunities to opportunistically add to our hedge portfolio. We made a big move in the first quarter, and that is something that we are evaluating and considering.

Patrick，這是個很好的問題。我想我們一直都在關注日圓的走勢，並思考何時有機會以更具機會性的方式增加我們的避險部位。我們在第一季採取了很大的動作，這也是我們正在評估與考量的事情。

Great. Thank you for taking my questions, good luck.

很好。謝謝你們回答我的問題，祝順利。

Thank you. Our next question comes from the line of Steven Fox from Cross Research. Please go ahead.

謝謝。下一個問題來自Cross Research的Steven Fox。請開始提問。

Thanks, good morning. Just looking at the Optical business, a little bit more and color. Could you talk about some of the end markets and how they performed, and how you think they are going to perform going into the second half of the year, specifically, wireless, fiber-to-the-home, and data center?

謝謝，早安。我想更深入了解一下光學（Optical）業務，請多提供一些細節。你能談談一些終端市場及其表現，以及你認為它們在下半年將如何表現嗎？特別是無線、光纖到府（fiber-to-the-home）以及資料中心？

And then, I'm just curious, given what I understand lead-times speed on some of the optical cables, how you expect to make up some of the lost sales? It doesn't sound like it's going to be an easy task to regain some of that share given what might have shipped during the quarter. Thanks.

接著我只是好奇，依我對部分光纖電纜交期速度的理解，你們預期要如何彌補一些流失的銷售？聽起來，考量到本季期間可能已經出貨的量，要重新拿回部分市占似乎不會是件容易的事。謝謝。

Thanks, Steven. So let's start with the situation in Opto. First, the main dynamic in the numbers were the problems we had on implementing this software solution. [This her]. We've had to apologize to our customers who totally rely on us in certain segments.

謝謝你，Steven。那我們先從 Opto 的情況談起。首先，數字背後的主要動態是我們在導入這套軟體解決方案時遇到的問題。[This her].我們不得不向在某些領域完全仰賴我們的客戶致歉。

Thank goodness that actually enterprise started a little slow this year. But our big telecom network providers totally felt this. And you've got to remember, we have gained so much share over these last several years because of our advantaged product sets. We have customers that basically rely on us for 100% of their deployment.

所幸今年企業端一開始的步調其實有點慢。但我們的大型電信網路供應商確實深受影響。而且你要記得，過去這幾年我們因為具優勢的產品組合而拿下了大量市占。我們有些客戶在部署上基本上 100% 都依賴我們。

So no question, our real extending lead times there, we have had to apologize to our customers and do our best to get those back on track. But also, we owe our investors an apology because we missed an opportunity to beat expectations and get off to a great start to the year. So now it is further added degrees of difficulty for us to be able to climb steeply through the back half and still had everybody's expectations for ourselves. But we think we can do it.

所以毫無疑問，我們那邊交期確實拉長了；我們必須向客戶道歉，並盡最大努力讓一切回到正軌。但同時，我們也欠投資人一個道歉，因為我們錯失了超越預期、在年初就有個漂亮開局的機會。因此，這也讓我們在下半年要大幅爬升、並且仍要達成大家對我們的期待，難度又更高了。但我們認為我們做得到。

So to your core question, enterprise started off slow, but we expect it to be strong, to come back. That is what we're hearing from all of our big customers. So like I said, that ended up being a gift, but seldom is a slow market a gift, but it was for us. Second, in telecom for the core network stuff, we expect that demand to be strong this year. Just because of where they rely on us and where they don't, we do expect to recover a significant hunk of our missed shipment set that just go into extended backlog. But we will also lose some business too.

回到你的核心問題：企業端年初雖然偏慢，但我們預期會轉強、會回來。這是我們從所有大型客戶那邊聽到的。所以如我所說，這最後反而像是一份禮物——雖然市場放緩很少是禮物，但對我們而言確實是。第二，在電信的核心網路相關部分，我們預期今年需求會很強。基於他們在哪些地方依賴我們、哪些地方不依賴我們，我們確實預期能追回相當大一部分原本漏掉的出貨，這些會轉為延長的積壓訂單。但我們也會流失一部分業務。

It is hard to exactly estimate that right now, Steven, but I think if you integrate everything together, and the way you should think about it is we are going to be growing in quarter three and quarter four with the software issue behind us, in double digits in Opto despite any sort of lingering impact. So that's the way were thinking about it. As we get through quarter two, we will understand the actual customer impacts in a little more finer detail. But that is sort of the rough outline. Does that make sense to you, sir?

Steven，現在要精準估算確實不容易，但我想如果把所有因素整合起來，你應該這樣看：在軟體問題排除後，我們在第三季和第四季的 Opto 仍會以雙位數成長，即便還有一些殘餘影響。這就是我們目前的思考方式。等我們走過第二季，我們會更細緻地了解對客戶的實際影響。但大致輪廓就是如此。先生，這樣對你有幫助嗎？

Yes. That's very helpful, I appreciate that. And then just as a quick follow-up, just directionally in terms of gaining content per device that you have talked about since the analyst meeting, should we expect some of that in the second half of the year, and if so, is there any sense you can give us on how that would play out? And I'll pass the baton, thanks.

有。這非常有幫助，謝謝你。再快速追問一下：就你們自分析師會議以來談到的「每台裝置內容價值提升」的方向而言，我們是否應該預期下半年會看到一些成果？如果是的話，你能否大概說明會如何展開？我把問題交棒，謝謝。

Well, Wendell, again. So on one hand, in Gorilla, as you heard from Tony, we are seeing less growth in sort of IT and small, right? On the other hand, we see the opportunity for revenue enhancement, and it is going to come in two broad areas. First, that as we introduce more advantaged glass products, just on our base glass business, we expect price to stop going down. That's still has to happen, right?

嗯，Wendell，再次說明一下。一方面，在 Gorilla 這邊，如你從 Tony 那裡聽到的，我們在 IT 與小型（市場）這一塊的成長較少，對吧？另一方面，我們看到提升營收的機會，主要會來自兩大領域。第一，隨著我們推出更多具優勢的玻璃產品，就我們的基礎玻璃業務而言，我們預期價格下滑會停止。這仍需要發生，對吧？

And the customers still have to love it, but that ought to be enhancing our gross margin. And then, second, we will be increasing our revenue per device through other ways by adding value. Right? And that is an example we just talked about on the Vibrant Corning Gorilla Glass, which basically moves us to selling a part and then a customized part in terms of the images that are on it.

而且客戶也必須喜歡它，但這應該會提升我們的毛利率。第二，我們會透過其他方式增加每台裝置的營收，藉由增加價值。對吧？我們剛剛提到的 Vibrant Corning Gorilla Glass 就是一個例子，基本上讓我們從賣一個零件，進一步變成賣一個客製化零件，例如上面的圖像。

We have other efforts going on in terms of the parts business to serve our customers at that higher revenue spot. And then, finally, we have some other new value-add products that you have heard us talk about, but now we expect to commercialize like fire technology for wearables, et cetera. Exact timing on how it comes in, my friend, is hard to call because it's technology adoption. But, yes, we would feel that, that sort of revenue enhancement could help us close some of that gap that we see with the small-end market.

我們在零件業務方面也還有其他努力，來在更高的營收水位上服務客戶。最後，我們還有一些你們聽我們談過、但現在預期要商業化的新加值產品，例如穿戴裝置用的 fire 技術等等。至於確切導入時點，朋友，因為牽涉到技術採用，確實很難判斷。但，是的，我們認為這類營收提升有機會幫助我們縮小在小型市場端看到的缺口。

Great. That's very helpful. Thanks very much.

很好。這非常有幫助。非常感謝。

Thank you. Our next question will come from the line of Mehdi Hosseini from SIG. Please go ahead.

謝謝。下一個問題來自 SIG 的 Mehdi Hosseini。請說。

Thanks for taking my question. Just as a follow-up to the Gorilla commentary, what gives you confidence that this is not a ASP pressure and just a reflection of lower volume due to demand?

謝謝讓我提問。延續 Gorilla 的評論，你們憑什麼有信心這不是 ASP 壓力，而只是需求走弱導致出貨量下降的反映？

Well, Mehdi, as we take a look at what we expected at the beginning of the year versus today, and what really has happened in the market is lower demand for handheld and also lower demand from a tablet standpoint. We expected tablets to be down this year, but they're going to be down a little bit more it than that. And so that takes our overall area growth, which we had expected to be up in the mid single digits or so down to the low single digits.

嗯，Mehdi，當我們比較年初的預期與現在的情況，市場實際發生的是：手持裝置需求較低，平板端的需求也較低。我們原本就預期今年平板會下滑，但下滑幅度會比我們預期的還要更大一些。因此，這使得我們整體面積成長（原本預期約中個位數成長）下修到低個位數成長。

From a pricing standpoint, our contracts get set at the early part of the year, so we feel good from an overall pricing standpoint. And the reason that we think our sales can be up mid to high single digits has to do with the value adds that Wendell talked about in the previous answer.

就定價而言，我們的合約在年初就已敲定，所以整體定價面我們感覺良好。而我們之所以認為銷售額仍可達到中到高個位數成長，原因在於 Wendell 在前一題回答中提到的那些加值項目。

Got it, thank you. And then, just looking at your cash flow, there was a cash burn from operation and can you help me understand what happened there? Go ahead.

了解，謝謝。另外，看你們的現金流，營運活動出現現金消耗（cash burn），你能幫我理解發生了什麼事嗎？請說。

Sure. I think the first thing that is important to focus on is our adjusted cash flow which also includes the impact from the hedges. And when you take those positive impacts from the hedges we had about $110 million of cash flow from operations, that was down from last year. And two major drivers of that, the first being lower profitability in the overall business, and then the second item is we had a big cash tax payment that happened in the first quarter this year.

當然。我認為第一個重要的重點是看我們的調整後現金流，其中也包含避險的影響。把避險帶來的正面影響納入後，我們的營運活動現金流約為 1.10 億美元，較去年下降。主要有兩個驅動因素：第一是整體業務獲利能力較低；第二是我們今年第一季支付了一筆較大的現金稅款。

As we look out for the entire year, we feel good about our ability to generate the operating cash flow consistent in line with what we did last year. So there is nothing to be concerned or alarmed about on that and it is the -- Q1 is usually or is always our lowest cash flow generating quarter.

展望全年，我們對於產生與去年一致水準的營運現金流能力感覺良好。所以這部分沒有什麼需要擔心或警覺的；而且第一季通常、或者說一向都是我們現金流產生最低的季度。

Got it. Thank you.

了解。謝謝。

Thank you. Our next question will come from Doug Clark from Goldman Sachs. Please go ahead.

謝謝。下一個問題來自高盛（Goldman Sachs）的 Doug Clark。請發問。

Hi, thanks for taking my question. Two quick ones and then a follow-up. The first one is on, have you seen any impact from the earthquakes in China? Not as much for your facilities of the glass industry, but for the rest of the TV supply chain. And then, secondly, can you help quantify how big the impact to gross margins is for the corporate average in the second quarter from the power outage in the Specialty Materials segment?

嗨，謝謝讓我提問。兩個簡短問題，然後再追問一個。第一個是，你們是否看到中國地震帶來任何影響？對你們玻璃產業的設施影響可能不大，但對電視供應鏈的其他環節呢？第二個，你能否協助量化：特種材料（Specialty Materials）事業部停電影響，對第二季公司整體平均毛利率的衝擊有多大？

Sure. I think from an overall supply chain standpoint, it is our understanding that there was some impact in the Taiwan earthquake, and so we clearly would have seen that in March in terms of some of the utilizations.

當然。我想從整體供應鏈的角度來看，我們的理解是台灣地震確實造成了一些影響，因此我們在3月的部分稼動率上，顯然會看到那樣的情況。

In terms of the impact in gross margin, of course, it will depend a little bit on how this all gets itself resolved. But we would have guided our gross margins to be 42% if we hadn't had this issue. So think of it somewhere, half a point, something like that.

至於對毛利率的影響，當然會在某種程度上取決於這件事最終如何解決。但如果沒有這個問題，我們原本會指引毛利率為42%。所以可以把它想成大約少了半個百分點左右，類似那樣。

Okay, great. And then the follow-up question, interesting that nobody has really has asked in the Display business yet but there I think you mentioned during the prepared remarks that utilizations from the panel makers have started to move back higher.

好的，很棒。接著追問一個：有趣的是，顯示（Display）業務這邊似乎還沒有人問，但我記得你在事先準備的發言中提到，面板廠的稼動率已開始回升。

Does that suggest that the first quarter indeed was the lowest point for utilizations and we should see a recovery throughout the rest of the year? And then, similarly and relatedly, are you seeing a further shift to thinner glass, 0.3 mm to 0.4 mm glass, and if that is having any impact on productions?

這是否表示第一季確實是稼動率的低點，且我們應該會在今年剩餘時間看到復甦？另外，相關地，你們是否看到進一步轉向更薄的玻璃（0.3 mm 到 0.4 mm），而這是否對生產有任何影響？

The answer to your first question is, absolutely, we think that Q1 is the low point. And we had said in the call last quarter, and we still continue to believe that Q1 would be the low quarter and we would start seeing increases in demand, and as our guidance shows, is that we are looking at the market and our own volumes to be up in the high single digits.

你第一個問題的答案是：絕對是。我們認為第一季就是低點。我們在上季的電話會議也說過，而且現在仍然相信第一季會是低點，之後會開始看到需求增加；從我們的指引也可以看出，我們看市場以及我們自身的出貨量，預期將以高個位數成長。

We feel good about where the market is on glass and where our volume is going to be in the second quarter, and even in the second half of the year. So the short answer is, is we thought that was going to be the case and it is absolutely turning out to be the case. You want to talk about thin?

我們對玻璃市場的狀況，以及我們第二季、甚至下半年出貨量的走勢都很有信心。所以簡短的答案是：我們原本就認為會如此，而現在確實正在發生。你想談談薄玻璃嗎？

I would say that no definitive move yet to the 0.4 mm, or 0.3 mm in a broad sense. But certainly an awful lot of dialogue, 0.4 mm is growing some. We will have to see how some of the big players end up working through the changes they have to make in panel making and how that interacts with what they see as the value prop on the thinner glass. More to come, watch this space.

我會說，目前還沒有明確、廣泛地轉向 0.4 mm 或 0.3 mm。但確實有非常多的討論，0.4 mm 的占比也在增加一些。我們還得看看一些大型玩家如何完成他們在面板製造上必須做的變更，以及這些變更如何與他們對更薄玻璃價值主張的看法互動。後續還會有更多進展，敬請關注。

Next question, Sean?

下一個問題，Sean？

Thank you. Our next question comes from the line of Vijay Bhagavath from Deutsche Bank. Please go ahead.

謝謝。下一個問題來自德意志銀行（Deutsche Bank）的 Vijay Bhagavath。請發問。

Yes, hi, good morning. Hi, Wendell, Tony. Two questions, if I may. The first is, if you look at your Optical Communications business, in addition to the manufacturing issues you noted, was there any weakness in any of the end markets you sell into in Optical, it would be helpful to hear? Thanks.

是的，嗨，早安。嗨，Wendell、Tony。如果可以的話我有兩個問題。第一個是，關於你們的光學通訊（Optical Communications）業務，除了你們提到的製造問題之外，你們在光學產品所銷售的任何終端市場是否也出現疲弱？希望能聽你們說明。謝謝。

Okay, I think Wendell talked about that before. The enterprise market did start off a little weak at the beginning of the year. When you take a look at our slides you will see that sales were down, a lot of that, of course, driven by the issue with our software implementation. But it did start off a little weak, but it definitely picked up as the quarter progressed and is very strong right now. The carrier market has been strong the entire time, so we feel very good about the end markets in Optical.

好的，我想 Wendell 之前談過。企業市場在年初確實有點疲弱。你看我們的投影片會看到銷售下滑，其中很大一部分當然是由我們軟體導入的問題所驅動。不過它一開始確實偏弱，但隨著季度推進明顯回升，目前非常強勁。電信營運商市場一直都很強，所以我們對光學的終端市場感覺非常好。

Perfect. And then, Tony, a quick follow-on for you. Cash flow generation in Q1 was quite weak. Help us understand what drove the weakness in cash flow? Thanks.

很好。接著 Tony，我再追問你一個。第一季的現金流產生相當疲弱。請幫我們理解造成現金流疲弱的原因是什麼？謝謝。

Sure. I think I already answered that, Vijay.

當然。我想我已經回答過了，Vijay。

Perfect. Thanks.

了解。謝謝。

Thank you. Our next question comes from the line of Rod Hall from JPMorgan. Please go ahead.

謝謝。下一個問題來自摩根大通（JPMorgan）的 Rod Hall。請發問。

Yes, hi, guys, thanks for the question. I have two. The first one is, we're tracking a lot of OLED capacity provisioning out in the marketplace. I'm just curious if you guys have an expectation for when OLED really starts to take share in the smart phone market? Is that next year, that you would expect that late this year, can you just give us color on that, and then what the impact on your own business would be?

是的，嗨，各位，謝謝讓我提問。我有兩個問題。第一個是，我們正在追蹤市場上大量的 OLED 產能規劃。我想請教你們是否預期 OLED 何時會在智慧型手機市場真正開始取得市占？是明年嗎？還是你們預期今年下半年就會發生？能否提供一些看法，以及這對你們自身業務的影響會是什麼？

And then, secondly, on Optical Communications, I just wanted to follow up. I think, Wendell, you had said that carriers are very reliant on you guys. I'm assuming that means you haven't really lost much share, but it's more an impact on projects, and I wonder if you could comment on, regionally at least, where projects may have been slowed down in terms of optical build out? Thanks.

第二個，關於光學通訊，我想再追問一下。我記得 Wendell 你說過營運商非常依賴你們。我猜這表示你們並沒有真的流失太多市占，而是對專案造成影響；我想請你至少從區域角度評論一下，哪些地區的光纖建設專案可能放緩了？謝謝。

Thanks, Rod. Thanks, especially, for the question on OLED because I was worried if no one asked I'd have nothing to talk about. I just have to tell them so that when Tony and Ann go out to talk to investors they would be able to have a reference point. So let's start with your Opto question. Very observant, Rod.

謝謝你，Rod。也特別謝謝你問 OLED 的問題，因為我還擔心如果沒人問，我就沒東西可講了。我得先告訴大家，這樣 Tony 和 Ann 之後出去跟投資人溝通時才有個參考點。那我們先從你的光通訊問題開始。Rod，你觀察得很敏銳。

So a rough piece is that is why we expect to recover in the back half a significant hunk of our Opto business is there is some of it that you just can't get the product or the systems anywhere else. But there is also a hunk in cable that is just going to be lost, that you could get an alternative at the cable-component level. The region you feel it the most in for us has been North America. So that is the region that has felt it the worst.

大致來說，我們之所以預期在下半年能收復我們光通訊業務中相當大的一部分，是因為其中有些產品或系統你在其他地方根本買不到。但在纜線（cable）方面也有一部分會流失，因為在纜線元件層級你可以找到替代方案。對我們而言，感受最明顯的區域是北美。所以北美是受影響最嚴重的地區。

We felt it everywhere because once we get it, a constrain of our capacity, we draw down. But North America has felt it the worst because that is the area where we had the software implementation points, and telecom customers tend to qualify specific product sets in particular production facilities. So that is where we felt it. It's why we're pretty encouraged we can recover, as well as the fact that things are really tight right now in fiber and cable. So that's our thought on Opto. Before I move to OLED, does that work for you, Rod?

我們在各地都有感受到，因為一旦我們的產能受限，就會出現供給拉緊的情況。但北美感受最嚴重，因為那是我們發生軟體導入問題的區域，而且電信客戶往往會在特定生產基地對特定產品組合進行認證。所以我們是在那裡感受到影響。這也是為什麼我們相當鼓舞能夠恢復，再加上目前光纖與纜線的供應其實非常吃緊。以上就是我們對光通訊的看法。在我轉到 OLED 之前，這樣回答可以嗎，Rod？

Yes, that would be great, Wendell. Thank you.

是的，那太好了，Wendell。謝謝。

Okay. So OLED. For those of you who are not following it quite as closely as Rod, the OLED capacity that has been largely announced or discussed has been for a technology called polyimide OLED. Let me start with what the impact is on us and then give you a little background.

好的。那麼談 OLED。對於各位沒有像 Rod 那樣密切關注的人而言，市場上大多已宣布或討論的 OLED 產能，主要是針對一種稱為聚醯亞胺 OLED 的技術。我先從它對我們的影響談起，然後再給各位一些背景。

The impact on us is that the adoption of this P-OLED technology will increase Corning glass sales. Now that seems unusual, right? So probably we should take a moment to explain it. A little over five years ago when OLEDs first began emerging as a number of the different OEMs started to promote them. We developed a strong point of view on how OLED would play out versus LCD.

對我們的影響是：採用這項 P-OLED 技術將會增加康寧玻璃的銷售。這聽起來很不尋常，對吧？所以我們可能應該花點時間解釋一下。大約五年多前，當 OLED 開始興起、許多不同的 OEM 開始推廣時，我們就對 OLED 相對於 LCD 的發展走向形成了很強的觀點。

So the first step is you have got to separate between large size and small. These are very different applications and they use different types of display technology, today, and going forward. In the large size, which is 90% of glass volume, roughly, we believed strongly then, and continue to believe, that OLEDs will be at best a niche product. And we thought that because we could see how LCDs would continue to improve, and what we believed is that OLED's incremental cost would not be worth their shrinking benefits relative to LCD. And that has played out, where we have gone from three major OEMs promoting OLED strongly to now just one. And certainly the market has played out in terms of demand as we expected. We continue to expect that technological outcome for the foreseeable future.

第一步是，你必須把大尺寸與小尺寸區分開來。這是非常不同的應用，現在以及未來都會使用不同類型的顯示技術。在大尺寸領域（約占玻璃用量的 90%），我們當時強烈相信、現在也仍然相信，OLED 充其量只會是利基產品。我們之所以這麼想，是因為我們看得到 LCD 會持續改進，而我們認為 OLED 的增量成本不值得其相對於 LCD 逐漸縮小的效益。而事實也如此發展：原本有三家主要 OEM 大力推廣 OLED，現在只剩一家。而且就需求而言，市場的走向也如我們所預期。在可預見的未來，我們仍預期技術結果會是如此。

Now in small is a different matter. Small about 10% of the market. We thought then, and now, that polyimide OLEDs were very, very interesting. And we thought they were interesting because you could potentially conform them behind a nice piece of our Corning Gorilla Glass and get a very different customer experience where you would have displays bending around corners, and, therefore, very small bezels. And long term, the potential for a flexible display.

但在小尺寸方面就不同了。小尺寸約占市場的 10%。我們當時以及現在都認為，聚醯亞胺 OLED 非常、非常有意思。我們覺得它有意思，是因為你可能可以把它貼合在我們康寧大猩猩玻璃（Corning Gorilla Glass）後面，帶來截然不同的客戶體驗：顯示器可以彎到邊角，因此邊框可以非常窄。長期來看，還有柔性顯示的潛力。

So that is where we focused our strategic and technical energy. And as a result, what we have done is we've developed a very advantaged product and very, very, very high-market shares. So as a result, even though polyimide OLED consumes less glass, this is way more than offset by our share gain in this technology. Plus, because this is the small part of the market, we do not see any overall impact to overall glass supply and demand in any sort of meaningful way.

所以那就是我們投入策略與技術能量的方向。因此，我們開發出非常具優勢的產品，並取得非常、非常、非常高的市占率。所以結果是，即使聚醯亞胺 OLED 的玻璃用量較少，但這點已被我們在該技術上的市占提升大幅抵消。另外，由於這是市場中較小的一部分，我們不認為它會以任何有意義的方式影響整體玻璃供需。

Rigid OLED versus LTPS LCD, they're going to split that market, that's not that big a deal. As goes the timing, so we have a really good idea on timing, but we can't really discuss it because that would disclose our knowledge of our customers' exact product plans and that would not be appropriate.

剛性 OLED 相對於 LTPS LCD，兩者會分食那個市場，這不是什麼大問題。至於時程，我們其實對時程有很好的掌握，但我們不能真正討論，因為那會揭露我們對客戶確切產品計畫的了解，這並不適當。

Wendell, is it fair to say that most of that capacity in the industry comes online next year as opposed to this?

Wendell，我這樣說公平嗎：產業中大部分的產能會在明年上線，而不是今年？

I think what makes that question hard to answer is I do not know whether or not you have got the totality of what people's capacity plans are, right? Clearly, we're going to see very robust growth in capacity in this space. How that will then tie to how and when products are introduced is a little more complicated question that starts to get more confidential. But usually you can count on announced capacity increases by the types of players that can actually manufacture this, could be relatively reliable.

我認為這個問題之所以難回答，是因為我不知道你是否掌握了所有人的完整產能規劃，對吧？很明顯地，我們將會看到這個領域的產能非常強勁地成長。而這將如何連結到產品如何以及何時導入，則是更複雜的問題，也會牽涉到更多機密。但通常你可以相信：由那些確實有能力製造的業者所宣布的產能擴增，可能相對可靠。

Okay, great. Thank you.

好的，很好。謝謝。

Thank you. Our next question comes from the line of George Notter from Jefferies. Please go ahead.

謝謝。下一個問題來自 Jefferies 的 George Notter。請發問。

Hi, thanks, guys. I wanted to ask about the cost downs you mentioned. I have to apologize, I think I missed some of the details here, but I think it was $40 million in cost downs. I think you were talking about the display business. Can you walk back through the numbers you were referencing? And then, what precisely are you doing there and why call it out this quarter, as opposed to the normal cost reduction efforts you guys go through? Thanks.

嗨，謝謝，各位。我想問一下你們提到的降成本。先道歉一下，我想我漏聽了一些細節，但我記得是 4,000 萬美元的降成本。我想你們是在談顯示事業。你能再帶我們回顧一下你們引用的數字嗎？另外，你們具體在做什麼？為什麼這一季要特別提出來，而不是像你們平常進行的例行降成本努力那樣？謝謝。

I think you're referring to the charge that we took in the first quarter. That is not in our core results but is in our GAAP results. It was about $109 million, and it was across a number of businesses, particularly some facility consolidations. What we were highlighting was, one, why the charge was there, and then the second item was just it continues in our journey to always be the lowest cost manufacturer.

我想你指的是我們在第一季認列的費用。那不在我們的核心結果中，但在 GAAP 結果中。金額大約是 1.09 億美元，涵蓋多個事業，特別是一些設施整併。我們強調的第一點是為什麼會有這筆費用；第二點則是，這也延續了我們一路以來始終要成為最低成本製造商的旅程。

From a cash standpoint, it equates, once all the charges are taken, it's about $40 million of cash. The annual savings is about $50 million and that's, obviously, why we did it.

從現金的角度來看，等所有費用都認列完之後，約等同於 4,000 萬美元的現金。年度節省約 5,000 萬美元，而這顯然就是我們這麼做的原因。

Got it. Thank you.

了解。謝謝。

Thank you. And then our next question will come from the line of Wamsi Mohan from BofA Merrill Lynch. Please go ahead.

謝謝。下一個問題來自 BofA Merrill Lynch 的 Wamsi Mohan。請發問。

Yes, thanks for taking the question. One of your initiatives, if we just step back here and look at over the last few years is bringing stability to the Display business. Now in the context of seeing the best pricing you have seen in five years in Q1, and improving from here on, and improving inventory situation, your Display core net income declined 24% on a year-on-year basis.

是的，謝謝讓我提問。如果我們退一步回顧過去幾年，你們的一項倡議是讓顯示事業更穩定。但在第一季看到你們五年來最佳的價格、且之後還會改善，同時庫存狀況也在改善的背景下，你們顯示事業的核心淨利卻年減 24%。

Can you talk about stabilizing the business from a profit context, in the context of these results, and you're still guiding 300 basis points of gross margin decline year on year, can you talk about why the gross margin isn't improving more sequentially when you are seeing such a nice uptick in Display volumes? Thank you.

你能否從獲利的角度談談在這些結果下如何穩定事業？另外，你們仍指引毛利率年減 300 個基點；在顯示器出貨量有這麼漂亮的回升時，為什麼毛利率的季比改善沒有更明顯？謝謝。

Sure, let me take the first question. What it's going to take to stabilize our Display earnings we've always said is a combination of two things. One is moderate price declines, and the second is volume growth. And what you saw in the first quarter, although the price declines were moderate, is our volume on a year-over-year basis was actually down. And so that, that is the key driver of the reduction in profitability.

當然，我先回答第一個問題。我們一直說，要穩定顯示事業的獲利，需要兩件事的組合。第一是溫和的價格下滑，第二是出貨量成長。而你在第一季看到的是，雖然價格下滑是溫和的，但我們的出貨量年比其實是下降的。因此，那就是獲利下滑的關鍵驅動因素。

And so as you look out moving forward, as we get into quarters where we have moderate price declines and we have significant volume increases, we certainly are going to get much closer to having stability in our Display business. That's fundamentally what we have been focused on. And we do believe that what's happened from a pricing standpoint over the last two years gives us greater confidence in the ability to do that.

所以往前看，當我們進入價格溫和下滑、且出貨量顯著增加的季度時，我們當然會更接近讓顯示事業達到穩定。這從根本上就是我們一直專注的方向。而且我們確實相信，過去兩年在定價方面的變化，讓我們對達成這點更有信心。

On your second question in terms of gross margins, we would have had a greater expansion on gross margins if it wasn't for the power outage in Taiwan. It will depend a little bit on actually how much that ends up costing us, but you can think of it in terms of a half a point from a gross margin standpoint. So that when we get into the second half of the year, when we don't have that impact, we don't have the impact from the software implementation and we have higher volumes we expect continued gross margin expansion getting much closer to where we were in the first half of last year.

關於您第二個問題、就毛利率而言，如果不是台灣停電事件，我們的毛利率擴張會更大。這會在某種程度上取決於最終實際會讓我們付出多少成本，但從毛利率角度來看，你可以把它想成大約少了半個百分點。因此，當我們進入下半年、在沒有這項影響、也沒有軟體導入的影響且出貨量更高的情況下，我們預期毛利率將持續擴張，並更接近去年上半年的水準。

Thanks, Tony. Operator, we will take one last quick question.

謝謝你，Tony。接線員，我們再接最後一個簡短問題。

Thank you. Our last question then will come from the line of James Faucette from Morgan Stanley. Please go ahead.

謝謝。那麼我們最後一個問題將由摩根士丹利（Morgan Stanley）的 James Faucette 提出。請開始。

Thanks very much. Wendell, I wanted to follow up on the Gorilla [AD] question on a couple of updates on other future initiatives, particularly what progress you have seen, if any, around Iris, as well as what feedback has been, after the reports you have released, in conjunction with Ford, on the auto glass opportunity, especially coming out of some of the recent trade shows and supplier shows in that space? Thanks.

非常感謝。Wendell，我想延續先前關於 Gorilla [AD] 的問題，追問幾項其他未來計畫的最新進展，特別是你們在 Iris 方面是否看到任何進度；以及在你們與福特（Ford）共同發布、關於汽車玻璃機會的報告之後，市場回饋如何，尤其是在近期該領域的一些貿易展與供應商展之後？謝謝。

Great. Thanks for the question. Iris continues to get strong engagement from the brands. And you are right to ask that in and around OLEDs because it is a way to get sub-5 mm thick LCD technology, which is starting to put you right in the zone of OLEDs. So that is part of one of those technological innovations.

好的。謝謝你的提問。Iris 持續獲得品牌端的高度投入與互動。而你把它放在 OLED 的脈絡下來問是對的，因為它是一種能把 LCD 技術做到 5 毫米以下厚度的方法，這會讓你開始進入與 OLED 競爭的區間。所以這是其中一項技術創新的一部分。

So we are continuing to see good strong interest in it. Fascinatingly enough, the fastest moving set of brands in this space are in China. And what we are seeing is real up-and-coming brands use this as a way to differentiate their very large TVs. So it is way too early to call this idea success, to add a third piece of glass to a TV.

因此我們持續看到相當強勁的興趣。很有意思的是，在這個領域推進最快的一批品牌在中國。我們看到一些真正崛起中的品牌，把這當作差異化其超大尺寸電視的方式。所以現在要說這個想法成功還太早，也就是在電視上再加第三片玻璃。

Let's keep asking the question as we roll forward. We should know a hunk more by the end of this year how much momentum this tech has got or not. But so far, I would color it as continuing to be quite intriguing to our brands, basically because you can get thinner TVs with smaller bezels, and that helps you versus OLED. It will all be about how does the economics work with that value prop and more to come.

我們會在推進過程中持續追問這個問題。到今年年底，我們應該會更清楚這項技術到底有多少動能、或是沒有。但到目前為止，我會形容它對品牌端仍相當有吸引力，基本上是因為你可以做出更薄、邊框更窄的電視，這有助於你對抗 OLED。最終關鍵在於：這個價值主張的經濟性如何運作，後續還會有更多資訊。

On auto, I think you rightly noticed the amount of coverage we have been getting mainly because of one of our big brands has been promoting it so strongly. So really on the back, our customers being so excited about this that we're getting all this press, and the most recent one is what they basically have announced is a joint technical study that they have done with us that shows not only is the glass lighter weight, but that it breaks a lot less. So you have the potential for a reduction in rock strike breaks by up to half.

至於汽車領域，我想你也正確注意到我們獲得的報導量，主要是因為我們的一個大型品牌客戶非常積極地在推廣。所以其實是因為客戶對此非常興奮，才帶來這麼多媒體曝光；而最近的一則是他們基本上宣布了一項與我們共同完成的聯合技術研究，顯示不僅玻璃更輕，而且破裂的機率也低很多。因此，碎石擊中造成破裂的情況有機會最多降低到一半。

So they got really excited about that and they believe it is the only way to get to very thin lightweight glazing, and the traditional ways to do it with soda lime just won't work technically and be safe. So they got really excited about that and published those papers. Expect more pieces on that. That all being said, I will say about this business what I have said from the beginning.

他們對此非常興奮，並且相信這是達成非常薄、非常輕量化車用玻璃（glazing）的唯一途徑；而用傳統的鈉鈣玻璃（soda lime）來做，在技術上既行不通也無法確保安全。所以他們對此非常興奮，並發表了那些論文。預期之後還會有更多相關報導。不過話說回來，關於這個業務，我會重申我從一開始就說過的話。

Don't get too excited until we actually see an everyday platform brand adopt it. And until we get there, I do not think we have reached a tipping point. No matter how excited our customers seem to be, until I get by that point I will not feel confident in being able to predict that we have really got something here. Does that make sense?

在我們真的看到某個日常量產平台的品牌採用之前，不要太興奮。在達到那一步之前，我不認為我們已經到達臨界點。不管客戶看起來多麼興奮，在我跨過那個門檻之前，我都不會有信心去預測我們真的已經抓到一個重大機會。這樣說有道理嗎？

It does. Thank you

有。謝謝。

Great, well, thanks, everyone, for listening. Once again, I apologize for the execution issue in telecom. Other than that, we are marching along as we anticipated to do. We look forward to updating you on strong sequential growth and the closing of the Dow Corning transaction.

很好，謝謝各位收聽。我再次為電信業務的執行問題致歉。除此之外，我們正如預期般持續推進。我們期待向各位更新強勁的連續成長，以及陶氏康寧（Dow Corning）交易的完成。

Thanks, Wendell. We have a few IR announcements. Our annual shareholder meeting is this Thursday and you can listen in on the Web. We will also be at the JPMorgan conference on May 24 in Boston, and the Sanford Bernstein conference on June 2 in New York City. Thank you all for joining in. A playback of the call is available beginning at 11 o' clock today Eastern, and will run until 5:00 PM Tuesday, May 10. To listen, dial 800-475-6701, the access code is 390718.

謝謝你，Wendell。我們有幾項投資人關係（IR）公告。我們的年度股東大會在本週四，您可以透過網路收聽。我們也將於 5 月 24 日在波士頓參加摩根大通（JPMorgan）會議，並於 6 月 2 日在紐約市參加 Sanford Bernstein 會議。感謝各位參與。本次電話會議的重播將於美東時間今天 11 點開始提供，並持續至 5 月 10 日（週二）下午 5:00。收聽請撥打 800-475-6701，存取碼為 390718。

The audio cast, of course, is available on our website during that time. Sean, that concludes our call. Please disconnect all lines.

當然，音訊網路直播在此期間也可於我們的網站上收聽。Sean，我們的電話會議到此結束。請斷開所有線路。

Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation, and for using AT&T Executive Teleconference. You may now disconnect.

謝謝。各位女士、先生，今天的電話會議到此結束。感謝各位的參與，並使用 AT&T 高階主管電話會議服務。您現在可以掛線。