康寧 (GLW) 2016 Q2 法說會逐字稿

Welcome to the Corning Inc quarter-two 2016 earnings results. It is my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations. Please, go ahead.

歡迎收聽康寧公司（Corning Inc.）2016 年第二季財報結果說明。我很高興把電話會議交給投資人關係事業部副總裁 Ann Nicholson。請開始。

Thank you, Cynthia. Good morning. Welcome to Corning's second-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，Cynthia。各位早安。歡迎參加康寧第二季電話會議。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'd like 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. You should also note that we will be discussing our results using core performance measures, unless we specifically indicate our comments relate to GAAP.

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。另外請注意，除非我們特別指出評論係與 GAAP 相關，否則我們將以核心績效衡量指標（core performance measures）來討論結果。

Our core performance measures are non-GAAP measures used by management to analyze the business. A reconciliation of quarter results to the comparable GAAP value can be found in the Investor Relations section of our website at Corning. We have slides posting live on our webcast to accompany our formal comments. They will be available on our website later this morning.

我們的核心績效衡量指標為非 GAAP 指標，管理階層用以分析業務。季度結果與可比較 GAAP 數值之調節表，可於康寧網站的投資人關係（Investor Relations）專區查閱。我們的網路直播同時提供投影片，以配合正式發言內容。投影片將於今天稍晚在我們的網站上提供。

Now, I will turn the call over to Wendell

現在，我把電話會議交給 Wendell。

Thank you, Ann. Good morning, everyone. As you saw in this morning's press release, second-quarter results exceeded our expectations, with core EPS up 32% sequentially to $0.37. We told you coming into this year that we expected the first quarter to be the weakest and then momentum would build throughout the year. We still expect that to be the case. We're very encouraged by our second-quarter improvement. We are confident that we will see both sequential and year-over-year growth in sales and EPS in the third quarter.

謝謝你，Ann。各位早安。如各位今早在新聞稿中所見，第二季結果優於我們的預期，核心每股盈餘（core EPS）較前一季成長 32%，達到 0.37 美元。我們在今年年初就告訴各位，預期第一季會是最疲弱的一季，之後動能將在全年逐步增強。我們仍然預期情況如此。我們對第二季的改善感到非常振奮。我們有信心第三季的營收與每股盈餘將同時呈現季增與年增。

Tony will discuss our results in detail, but before he does, I want to offer some color on the great progress we are making against the strategy and capital allocation framework we announced last October. You'll 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. No doubt a highlight of our second-quarter progress was closing the realignment of our interest in Dow Corning.

Tony 將詳細說明我們的結果；但在他開始之前，我想補充一些背景，說明我們在去年 10 月公布的策略與資本配置架構上所取得的重大進展。各位會記得，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、回饋股東並創造顯著價值。毫無疑問，我們第二季進展的一大亮點，是完成我們在 Dow Corning 權益的重整交易。

In the transaction, we exchanged Corning's 50% interest in Dow Corning Corporation for a 100% other subsidiary that holds an equity interest in Hemlock and approximately $4.8 billion in cash. The $4.8 billion is approximately 30 times the equity earnings from Dow Corning's silicones business, unlocking tremendous value for our shareholders. Our continued ownership interest in Hemlock allows us to catch a potential upside from a rebound in the solar market, while also providing market insight and access for our semiconductor innovation programs. Notably, the realignment was a significant milestone in delivering on our strategy to focus 80% of our resources on our three core technologies, four manufacturing and engineering platforms and five market access platforms.

在該交易中，我們以康寧持有 Dow Corning Corporation 50% 的權益，交換取得一個 100% 持有的其他子公司（該子公司持有 Hemlock 的股權），以及約 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，為股東釋放了巨大的價值。我們持續持有 Hemlock 的權益，使我們能在太陽能市場復甦時掌握潛在上行空間，同時也為我們的半導體創新計畫提供市場洞察與接觸管道。值得注意的是，這次重整是我們落實策略的重要里程碑：將 80% 的資源聚焦於三大核心技術、四大製造與工程平台，以及五大市場進入平台。

We are also making steady progress on other aspects of our focused portfolio strategy. Let's take a look at a few examples. We continue to leverage our competitive advantages and strong customer relationships in display to stabilize returns and deliver new innovations that increase our revenue per display. In May, our Iris Glass earned a Display Component of the Year Award at SID for enabling thinner displays with lower color shift. This technology replaces plastic light-guide plates, adding a third piece of glass to large, edge-lit TVs. I'm very pleased with the additional commercial transaction that we are gaining on this product.

在聚焦投資組合策略的其他面向，我們也持續穩健推進。我們來看幾個例子。在顯示器領域，我們持續運用競爭優勢與強大的客戶關係，以穩定報酬並推出新創新，提升每台顯示器的營收貢獻。5 月，我們的 Iris Glass 在 SID 獲得「年度顯示元件獎」（Display Component of the Year Award），因其可實現更薄的顯示器並降低色偏。此技術可取代塑膠導光板，為大型側光式電視增加第三片玻璃。我對我們在此產品上取得的額外商業交易進展感到非常滿意。

In the automotive space, we are reapplying our core technologies and reusing our manufacturing assets to assist manufacturers looking toward connected cars and tighter regulations. Gorilla Glass for auto is a great example. It is 30% lighter than traditional auto glass, offers important safety advantages and provides a superior surface for heads-up displays. In April, we presented a joint paper at SAE with Ford that demonstrated Gorilla Glass for auto is to 2 to 3 times stronger in rock strikes with reduced spalling hazards versus soda-lime glass. I'm very much looking forward to reporting more on this topic in the future.

在汽車領域，我們重新應用核心技術並重複利用製造資產，以協助車廠因應連網車趨勢與更嚴格的法規。汽車用 Gorilla Glass 就是一個很好的例子。它比傳統汽車玻璃輕 30%，具備重要的安全優勢，並為抬頭顯示器（HUD）提供更優異的表面。4 月，我們與 Ford 在 SAE 共同發表論文，證明汽車用 Gorilla Glass 在碎石撞擊測試中強度為蘇打石灰玻璃（soda-lime glass）的 2 至 3 倍，且可降低剝落（spalling）危害。我非常期待未來能就此主題提供更多進展。

Our efforts to lead in gas particulate filters also advanced during the quarter. Remember that if adopted, this technology increases our revenue by 3 to 4 times for gasoline direct injection engines. The exciting news for us is that both Volkswagen and Mercedes-Benz announced that they will equip vehicles with gas particulate filters beginning as early as 2017. We won several new GPF platforms in quarter two.

我們在汽油微粒過濾器（gas particulate filters, GPF）領域的領先努力，在本季也有所推進。請記得，若此技術被採用，對於汽油缸內直噴（GDI）引擎而言，可使我們的營收增加 3 到 4 倍。令我們振奮的消息是，Volkswagen 與 Mercedes-Benz 都宣布，最早將自 2017 年起在車輛上配備汽油微粒過濾器。我們在第二季贏得了數個新的 GPF 平台。

In mobile consumer electronics, we just announced a new member of the Corning Gorilla Glass family, Gorilla Glass 5. It has up to 1.8 times better damage resistance than Gorilla Glass 4 and delivers up to 4 times improvement in drop height to failure versus competitive glass designs. We expect this superior drop performance to translate into a meaningful price premium versus Gorilla Glass 4 and to expand the use of Gorilla. Given that drop performance is the number one want from consumers, it's not surprising the traction at our customers has been strong. We should be hearing announcements from them in the near future.

在行動消費性電子方面，我們剛宣布康寧 Gorilla Glass 家族的新成員：Gorilla Glass 5。其抗損傷能力最高可較 Gorilla Glass 4 提升 1.8 倍，且相較競品玻璃設計，從跌落高度到失效的表現最高可提升 4 倍。我們預期這項優異的抗摔表現，將帶來相較 Gorilla Glass 4 具意義的價格溢價，並擴大 Gorilla 的使用。鑑於抗摔表現是消費者最重視的需求之一，我們在客戶端獲得強勁的採用動能並不令人意外。我們應該會在不久的將來聽到他們的相關公告。

In the growing optical communications market, we closed on the acquisition of Alliance Fiber Optic Products, bolstering our presence in the high-growth cloud data center market. Now, this acquisition supports our optical market access platform by accelerating our co-innovation strategy and adding new products. We see it strengthening our ability to deliver high-value optical solutions for network operations worldwide.

在成長中的光通訊市場，我們完成對 Alliance Fiber Optic Products 的收購，強化我們在高成長的雲端資料中心市場的布局。這項收購透過加速共同創新（co-innovation）策略並新增產品，支持我們的光學市場進入平台。我們認為這將強化我們向全球網路營運商提供高價值光學解決方案的能力。

We also announced a separate investment in a small company, Versalume, to commercialize our Fibrance Light-Diffusing Fiber. Fibrance combines Corning's strengths in glass, optical physics and fiber manufacturing, but it's benefits extend beyond Corning's current market focus. Versalume will enable Fibrance's technology to quickly get into the hands of designers and customers in architecture, auto lighting, medical devices, athletic apparel, aerospace and other industries seeking to solve difficult lighting challenges.

我們也宣布對一家小型公司 Versalume 進行另一項投資，以商業化我們的 Fibrance 導光擴散纖維（Light-Diffusing Fiber）。Fibrance 結合了康寧在玻璃、光學物理與光纖製造方面的優勢，但其效益延伸至康寧目前市場聚焦之外。Versalume 將使 Fibrance 技術能快速交到建築、汽車照明、醫療器材、運動服飾、航太，以及其他尋求解決艱難照明挑戰之產業的設計師與客戶手中。

Versalume demonstrates one way where we can keep our focus on the core 3-4-5 portfolio, while still extending the impact of Corning innovation to new markets. Those projects illustrate just some of the ways that we will invest $10 billion under the strategy and capital allocation framework. We believe the investments will produce significant sales growth by extending our leadership in existing markets and positioning us to win in new markets.

Versalume 展示了其中一種方式：我們在維持對核心 3-4-5 投資組合聚焦的同時，仍能將康寧創新的影響力延伸至新市場。這些專案僅是我們將在該策略與資本配置架構下投資 100 億美元的部分例子。我們相信，這些投資將透過延伸我們在既有市場的領導地位並使我們在新市場取得勝利，帶來顯著的營收成長。

Let's turn to the second part of our strategy and capital allocation framework, utilizing our financial strength. We updated the framework in June to recognize significant progress across multiple fronts, including the closing of the Dow Corning transaction. We now expect to generate and deploy more than $26 billion through 2019, up from our previous plan to deploy more than $22 billion. Notably, we raised the lower bound of our commitment to shareholder returns to $12.5 billion through 2019, up from $10 billion.

接下來談策略與資本配置架構的第二部分：運用我們的財務實力。我們在 6 月更新了該架構，以反映我們在多個面向取得的重大進展，包括完成 Dow Corning 交易。我們目前預期至 2019 年將產生並部署超過 260 億美元，高於先前計畫部署超過 220 億美元。值得注意的是，我們將至 2019 年回饋股東承諾的下限提高至 125 億美元，高於原先的 100 億美元。

Cumulatively, since October, we have already returned $3 billion under the framework, including $810 million in share repurchases during the second quarter. Today, we are announcing our intention to execute a $2 billion accelerated share repurchase, which will approximately offset the EPS impact from the loss of Dow Corning's silicones earnings. So to summarize, we are making solid progress delivering on our new framework, which is designed to deliver secular growth, while consistently returning significant sums to our shareholders.

累計而言，自10月以來，我們已在該框架下回饋了30億美元，其中包括第二季進行的8.10億美元庫藏股回購。今天，我們宣布擬執行20億美元的加速股票回購（ASR），此舉將大致抵銷因道康寧矽利康（silicones）獲利損失對每股盈餘（EPS）造成的影響。總結來說，我們在落實新框架方面取得了扎實進展；該框架旨在帶動結構性成長，同時持續向股東回饋可觀資金。

We are utilizing our financial strength to invest in our focused portfolio and drive that growth. We have raised our planned cash distributions to shareholders to more than $12.5 billion, which is equivalent to about half of Corning's current market capitalization. We look forward to launching our new $2 billion ASR tomorrow. Now, I will turn the call over to Tony, who will review our second-quarter results and third-quarter outlook. Tony?

我們正運用自身的財務實力，投資於聚焦的投資組合並推動成長。我們已將規劃中的股東現金回饋提高至超過125億美元，約相當於康寧目前市值的一半。我們期待明天啟動新的20億美元ASR。接下來我把電話交給Tony，由他回顧我們第二季業績與第三季展望。Tony？

Thank you, Wendell. Good morning. As we noted in today's press release, our Q2 core results reflect the sequential improvement we expected across most of our businesses and building momentum for a strong second half. We were particularly pleased with our strong operating results, including the strong sequential sales and profit growth in optical communications and display's moderate price declines and strong sequential volume growth.

謝謝你，Wendell。各位早安。如同我們在今日新聞稿中所提到的，我們第二季核心業績反映了我們預期多數業務將出現的季對季改善，並為下半年強勁表現累積動能。我們對強勁的營運成果尤其感到滿意，包括光纖通訊的強勁季對季銷售與獲利成長，以及顯示事業溫和的價格下滑與強勁的季對季出貨量成長。

In optical communications, cable production levels recovered during the second quarter from the first-quarter software implementation issue. Combined with strong demand, the recovery resulted in sequential sales growth for optical of 28%, which was even better than the guidance we provided in April. Looking ahead, we are encouraged by the further sequential and year-over-year growth we see in the third quarter.

在光纖通訊方面，第二季的纜線產量已自第一季軟體導入問題中恢復。在強勁需求的帶動下，這項恢復使光纖通訊季對季銷售成長28%，甚至優於我們4月提供的指引。展望未來，我們對第三季可見的進一步季對季與年對年成長感到鼓舞。

Now before I get into the details of our core performance and outlook, I want to briefly point to the two primary drivers between our GAAP and core results for this quarter. First, our GAAP net income includes a $2.7 billion non-taxable gain on the strategic realignment of our ownership interest in Dow Corning. Second, similar to the first quarter, this quarter's GAAP results were affected by a $791 million non-cash mark-to-market loss that reflects the required accounting treatment for our currency hedge contracts. I'd like to provide a bit of context.

在我深入說明本季核心表現與展望之前，我想先簡要指出本季GAAP與核心結果之間差異的兩個主要驅動因素。第一，我們的GAAP淨利包含一筆27億美元的免稅收益，源自我們對道康寧持股權益的策略性重新調整。第二，與第一季類似，本季GAAP結果受到7.91億美元非現金按市價評價（mark-to-market）損失的影響，該損失反映了對我們外匯避險合約所要求的會計處理。我想提供一些背景說明。

As you know, we sell LCD glass in yen and a 1 point move in the exchange rate, affects our net income and cash flow translation by about $23 million annually at the current exchange rate. As you also know, we have currency hedge contracts, predominantly in 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 our confidence that we can achieve our financial goals. We are very pleased with the results of our hedging program and the economic certainty it delivers.

如各位所知，我們以日圓銷售LCD玻璃；在目前匯率水準下，匯率每變動1個點，會使我們的淨利與現金流換算金額每年約變動2,300萬美元。各位也知道，我們持有外匯避險合約（以日圓為主），以降低匯率變動對我們獲利與現金流的影響。透過避險，我們提高了業績的可預測性，也更有信心達成財務目標。我們對避險計畫的成果以及其帶來的經濟確定性非常滿意。

Since the inception of this strategy, we have settled hedge contracts and received cash totaling $1.1 billion and offset much of the decline in display's earnings due specifically to the weaker yen. In January, we increased our hedge coverage, which further reduced our risk and increased our confidence in achieving our financial goals. We have hedged approximately 70% of our projected yen exposure through 2022 at a blended rate of approximately JPY106 per $1. For any investor, who is worried that a weakening yen could negatively impact our business, hedging earnings and cash flow through 2022 substantially mitigates that concern.

自該策略啟動以來，我們已結算避險合約並累計收取11億美元現金，抵銷了顯示事業因日圓走弱而導致的獲利下滑中的大部分影響。今年1月，我們提高了避險覆蓋率，進一步降低風險並提升達成財務目標的信心。我們已以約每1美元兌106日圓的加權平均匯率，對2022年前約70%的預估日圓曝險進行避險。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年可大幅降低這項疑慮。

Now let's move from the economic impact of our hedging program to GAAP accounting. As we discussed in detail last quarter, GAAP requires earning translation hedge contracts settling in future periods to be marked-to-market and recorded at their current value in the current quarter, even though those contracts will not be settled in the current quarter.

接下來，讓我們從避險計畫的經濟影響轉到GAAP會計處理。如同我們上季已詳細討論的，GAAP要求：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當季的現值記錄於當季，即使這些合約不會在當季結算。

In other words, under GAAP accounting, each quarter we are required to revalue all of our existing contracts at the current and forward rate, and record the difference in value from the prior quarter in through the P&L as an unrealized gain or loss. This requirement results in significant GAAP earnings volatility if the exchange rates changes from quarter-to-quarter. 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 of $431 million and $410 million respectively, primarily due to the weakening yen.

換言之，在GAAP會計下，每一季我們都必須依據即期與遠期匯率，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。若匯率在各季之間變動，這項規定會造成GAAP獲利出現顯著波動。鑑於我們避險投資組合的規模，這些調整金額可能相當可觀。例如，2014年第三季與第四季，我們分別出現4.31億美元與4.10億美元的大額未實現非現金收益，主要原因是日圓走弱。

In the first quarter this year, the yen sharply strengthened driving a $599 million unrealized non-cash mark-to-market loss. Macroeconomic factors, including concern around Brexit, caused further fluctuation in the yen exchange rate. Overall, it strengthened again over the second quarter, which was the primary factor in the $791 million mark-to-market loss. Our GAAP results will continue to see this volatility when the yen rate moves. To be clear, this GAAP accounting has no impact on our cash flow in the quarter. Actual cash flow in any quarter is determined by the amount of hedge contracts we settle in any given quarter.

今年第一季，日圓大幅升值，導致5.99億美元的未實現非現金按市價評價損失。包含對英國脫歐（Brexit）的擔憂在內的總體經濟因素，造成日圓匯率進一步波動。整體而言，日圓在第二季再度升值，這是造成7.91億美元按市價評價損失的主要因素。當日圓匯率波動時，我們的GAAP結果將持續出現這種波動性。需要明確的是，這項GAAP會計處理對本季現金流沒有任何影響。任何一季的實際現金流，取決於我們在該季結算的避險合約金額。

Our contracts are designed so that the cash received or paid on the contracts substantially offset the change in display's translating 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. For investors who have additional questions, there is a tutorial on FX hedge accounting on the Digital Media Disclosure section of our Investor Relations website. As always, Ann and her team are available after the call.

我們的合約設計使得合約收付的現金，能在很大程度上抵銷該季顯示事業以日圓計價獲利與現金流換算所產生的變動。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。若投資人有進一步問題，我們投資人關係網站的「數位媒體揭露」專區提供外匯避險會計的教學內容。一如往常，Ann及其團隊會在會後提供協助。

Now, let's turn to the results for the second quarter. As a reminder, these are core performance metrics. Sales in the quarter were $2.4 billion, up sequentially from $2.2 billion in Q1 and exceeding our expectations, driven by optical communications. Corporate gross margin was 43%, up more than 200 basis points sequentially and better than our guidance. The uptick reflected the added volume in optical communications. SG&A was 14% of sales at $342 million as expected. RD&E costs were flat sequentially and versus last year at $192 million. Our effective tax rate for the quarter was 15% as guided. Net income was $434 million, up almost $100 million from Q1. EPS was $0.37 and above expectations.

現在，讓我們來看第二季的業績。提醒各位，以下為核心績效指標。本季銷售額為24億美元，較第一季的22億美元季對季成長，且高於我們預期，主要由光纖通訊帶動。公司整體毛利率為43%，季對季提升超過200個基點，且優於我們的指引。毛利率上升反映了光纖通訊出貨量增加。銷管費（SG&A）如預期為3.42億美元，占銷售額14%。研發與工程（RD&E）費用為1.92億美元，較前一季及去年同期持平。本季有效稅率為15%，符合指引。淨利為4.34億美元，較第一季增加近1億美元。每股盈餘（EPS）為0.37美元，高於預期。

Now let's look at the detailed segment results beginning with display technologies. In the second quarter, the display market and our performance tracked with our observations in April. You may recall that in the first quarter, panel makers lowered utilization, which allowed the supply chain to reduce inventory. Glass demand was down sequentially and year-over-year. We expected panel makers to increase utilization in Q2 to meet demand for the second-half retail season and for glass demand to grow. That's what we saw in industry dynamics in recent months.

接下來我們檢視各事業部門的詳細結果，先從顯示科技開始。第二季顯示市場與我們的表現，與我們4月的觀察一致。各位或許記得，第一季面板廠降低稼動率，使供應鏈得以降低庫存。玻璃需求在季對季與年對年皆下滑。我們預期面板廠會在第二季提高稼動率，以滿足下半年零售旺季需求，並帶動玻璃需求成長。這正是我們近幾個月在產業動態中所看到的情況。

At retail, sell-through data through May showed demand tracking to overall expectations for glass area growth of 8% to 10% in 2016. Panel prices across most TV sizes increased and panel makers turned up utilization rates to meet demand through the second quarter. Weeks of inventory in the supply chain ended the quarter at a healthy level. Glass supply and demand remains balanced. Our share is stable. As a result of these and other factors, our volume returned to year-over-year growth and was up high single-digits sequentially.

在零售端，截至5月的終端銷售（sell-through）數據顯示，需求符合我們對2016年玻璃面積成長8%至10%的整體預期。多數電視尺寸的面板價格上漲，面板廠在第二季提高稼動率以滿足需求。供應鏈的庫存週數在季末維持於健康水準。玻璃供需仍維持平衡。我們的市占率穩定。在上述及其他因素影響下，我們的出貨量恢復年對年成長，且季對季成長達高個位數。

Price declines were moderate, as expected. These dynamics inform our belief that we will see year-over-year volume growth continued in the second half. The moderate pricing environment we've experienced over the last eight quarters will continue orr even improve, which is good for Corning. Second-quarter sales and net income in display were up 6% sequentially, driven by the stronger volume.

價格下跌幅度如預期般溫和。這些動態支撐我們的看法：下半年年對年出貨量成長將持續。我們在過去八個季度所經歷的溫和定價環境將延續，甚至可能改善，這對康寧而言是利多。顯示事業第二季銷售額與淨利較前一季成長6%，主要由更強勁的出貨量帶動。

Let's move to optical communications. Results snapped back from the first quarter due to strong demand and the return to full production in our cabling facilities toward the ends of the quarter. Q2 sales were $782 million, up 28% sequentially and better than we expected. Net income at $86 million was more than triple the first quarter. We are very pleased to be at full production and continue to work hard to meet our commitments to customers.

接著談光學通訊。由於需求強勁，且我們的纜線製造設施在季末前後恢復滿載生產，業績自第一季明顯回升。第二季銷售額為7.82億美元，較前一季成長28%，且優於我們預期。淨利為8,600萬美元，超過第一季的三倍。我們很高興能恢復滿載生產，並將持續努力履行對客戶的承諾。

In environmental, Q2 sales were consistent with last year and in line with expectations. Sales of light-duty products for auto were up year-over-year, driven by continued strong demand. This strength was offset by the continued weakness in North America and China for heavy-duty diesel products. Truck production in North America is down this year. China's production is also expected to be down for the second consecutive year, driven by the weakness in their economy. Net income was consistent with Q1 and in line with our expectations.

在環境科技事業方面，第二季銷售額與去年持平，符合預期。汽車用輕型產品銷售年增，主要受持續強勁需求帶動。然而，北美與中國重型柴油產品需求持續疲弱，抵銷了上述強勢。北美今年卡車產量下滑。受其經濟疲弱影響，預期中國產量也將連續第二年下滑。淨利與第一季一致，符合我們預期。

Let's move to specialty materials. For the quarter, sales were up 17% sequentially. Net income was up 50% on the higher volume. The premium on Gorilla Glass 4 drove a 9% increase in year-over-year net income. That said, more broadly the market for smartphones, tablets and laptop computers is lower than we expected. Worldwide macroeconomic conditions are slowing demand in emerging markets. Additionally, there have been fewer major product launches to drive demand and replacement cycle appears to be longer. Our customers are responding to this lower demand environment.

接著談特殊材料。本季銷售額較前一季成長17%。在出貨量提升帶動下，淨利成長50%。Gorilla Glass 4 的溢價帶動淨利年增9%。不過，更廣泛而言，智慧型手機、平板與筆電市場表現低於我們預期。全球總體經濟狀況正在放緩新興市場需求。此外，帶動需求與換機的重大產品發表較少，且換機週期似乎拉長。我們的客戶正因應這個較低需求的環境。

As a result, Gorilla Glass volume in specialty materials sales did not meet expectations in Q2. Segment sales were down 2% versus last year. We anticipate this weaker handheld and IT end market environment will persist through the second half. We now expect full-year sales in specialty materials to be consistent with or down slightly from 2015, driven primarily by our performance in Q1. We do expect sequential growth in each quarter. Although, we expect the overall market to be flat, we are extending our leadership in the cover glass market.

因此，第二季特殊材料事業中 Gorilla Glass 的出貨量未達預期。該事業部門銷售額較去年下滑2%。我們預期這種較疲弱的手持裝置與IT終端市場環境將延續至下半年。我們目前預期特殊材料全年銷售額將與2015年大致持平或小幅下滑，主要受第一季表現影響。我們仍預期各季將呈現逐季成長。儘管我們預期整體市場持平，我們仍在延伸我們於蓋板玻璃市場的領導地位。

First, we are gaining even more share in the aluminosilicate cover glass. Second, our ability to innovate and deliver value add products at a premium price is playing out as we expected. As Wendell said, we are attacking again with our recent launch of Gorilla Glass 5. We look for innovations like this to drive revenue and income growth, even in a maturing market. In Life Sciences, Q2 sales were $215 million and met our expectations for low single-digit growth. Net income was $21 million consistent with last year and higher than Q1 on higher sales.

第一，我們在鋁矽酸鹽蓋板玻璃的市占率持續提升。第二，我們以溢價提供創新與加值產品的能力，正如我們預期般逐步展現成效。如同Wendell所說，我們近期推出 Gorilla Glass 5，再次積極進攻。我們期待這類創新即使在市場成熟之際，仍能帶動營收與獲利成長。在生命科學事業方面，第二季銷售額為2.15億美元，符合我們對低個位數成長的預期。淨利為2,100萬美元，與去年持平，且因銷售增加而高於第一季。

Now let's turn to equity earnings. As Wendell said, the close of the Dow Corning realignment in June was a significant milestone for Corning. The transaction adds $4.8 billion in cash to our balance sheet or about 30 times Dow Corning's annual silicones equity earnings and was essentially tax-free. The freedom to deploy that capital is a tremendous value driver for our shareholders. Because of the timing of the transaction, the equity earning line in our second-quarter financial statements reflect only two months of Dow Corning's silicones equity earnings, plus a full quarter of Hemlock's equity earnings.

接著談權益法投資收益。如同Wendell所說，6月完成 Dow Corning 重整交易，對康寧而言是一個重要里程碑。該交易為我們資產負債表增加48億美元現金，約相當於 Dow Corning 矽利康（silicones）年度權益法收益的30倍，且基本上免稅。能夠自由運用這筆資本，將為股東創造巨大的價值驅動。由於交易時點因素，我們第二季財報中的權益法收益僅反映 Dow Corning 矽利康業務兩個月的權益法收益，加上 Hemlock 一整季的權益法收益。

For your models, the way we will report Hemlock's equity earnings in our income statement going forward is changing. Prior to restructuring, equity earnings in Hemlock was reported in equity earnings on an after-tax basis. Going forward, it will be reported on a pretax basis. The taxes will be reported as part of Corning's total tax expenses. As you can see from this example on the slide, the contributions to our net income does not change. If you have any questions on this, of course, Ann and her team are happy to help.

就各位的模型而言，我們未來在損益表中呈報 Hemlock 權益法收益的方式將有所改變。在重整之前，Hemlock 的權益法收益以稅後基礎列入權益法收益。未來將改以稅前基礎列報。相關稅負將列入康寧的整體所得稅費用。如投影片中的例子所示，對我們淨利的貢獻不會改變。若各位對此有任何問題，Ann及其團隊很樂意協助。

Let's turn to our balance sheet and cash flow. We ended the quarter with $7.1 billion of cash, up $3.5 billion in cash at March 31, including approximately $5 billion in the United States. Adjusted operating cash flow for the quarter was up significantly over Q1, as expected at $595 million. The comparison to 2015 is challenging because this year, we did not receive dividends from Dow Corning in light of the realignment in June. We paid a one-time legal settlement and net income was lower. We expect operating cash flow to be up even more in the second half. Historically, most of our operating cash flow is generated in the back half of the year. Major drivers of the increase include higher net income, a reduction in working capital and the non-repeat of front-half loaded cash expenses. During the quarter, we repurchased $810 million worth of common shares outstanding.

接著談資產負債表與現金流。本季末我們持有現金71億美元，較3月31日增加35億美元，其中約50億美元在美國境內。如預期，第二季調整後營運現金流較第一季大幅增加，為5.95億美元。與2015年的比較較具挑戰，因今年因6月重整交易之故，我們未收到 Dow Corning 的股利。我們支付了一次性法律和解金，且淨利較低。我們預期下半年營運現金流將進一步上升。歷史上，我們多數營運現金流是在下半年產生。增加的主要驅動因素包括淨利提高、營運資金下降，以及上半年集中發生的現金支出不再重複。本季我們回購了8.10億美元的流通普通股。

Now for the outlook. Let's begin with display and the display market. For the full year, our view of end market and glass market growth is unchanged. While there are puts and takes by region, we continue to expect worldwide TV unit growth of 2% and screen size to increase by more than 1.5 inches. As I already mentioned, the outlook for handheld and IT market is lower than our prior expectations, but those segments are our relatively small part of the overall display glass market. Therefore, in total for the year, we still expect the overall retail market in square feet to be up 8% to 10%. We continue to expect the overall glass market, in terms of area, to be up in the mid single-digits. The first-quarter supply chain inventory draw-down accounts for the difference.

接著談展望。先從顯示事業與顯示市場開始。就全年而言，我們對終端市場與玻璃市場成長的看法維持不變。儘管各地區有利有弊，我們仍預期全球電視出貨量成長2%，且螢幕尺寸將增加超過1.5吋。如我先前提到，手持裝置與IT市場展望低於我們先前預期，但這些區塊在整體顯示玻璃市場中占比相對較小。因此，全年合計我們仍預期以平方英尺計的整體零售市場將成長8%至10%。我們仍預期以面積計的整體玻璃市場將呈現中個位數成長。第一季供應鏈庫存去化解釋了兩者之間的差異。

Turning to our third quarter, we're seeing healthy supply chain inventory. Panel maker inventory is lean. They are further increasing utilization to meet increased demand from set makers. As result, we expect the glass market and our volume to be up mid single-digit sequentially in the third quarter. We also expect our LCD glass prices to decline moderately sequentially consistent with Q2. As we have previously explained, we will maintain our stable share strategy and align our operating capacity with market demand. We continue to expect a more favorable pricing environment will continue or possibly improve for two reasons.

就第三季而言，我們看到供應鏈庫存水位健康。面板廠庫存精實。為滿足整機廠增加的需求，他們正進一步提高產能利用率。因此，我們預期第三季玻璃市場與我們的出貨量將較前一季呈現中個位數成長。我們也預期LCD玻璃價格將如第二季般，較前一季溫和下滑。如我們先前所說，我們將維持穩定市占策略，並使營運產能與市場需求一致。我們仍預期更有利的定價環境將持續，或可能改善，原因有二。

First, we monitor utilization and market demand and other market factors very closely. All indicate that glass supply should remain tight for the balance of the year, especially in the large gen sizes as a result of strong TV demand. Second, our competitors' profitability is low, even though price declines have been moderate for two years now, their profitability has declined during that period; therefore, we expect that their price declines will slow further as they try to remain profitable. For these and other reasons, we continue to believe that sequential pricing will be better for us going forward. Moving to optical communications. For the third quarter, we expect sales to be up approximately 10% versus last year, driven by growth in fiber-to-the-home and data centers.

首先，我們非常密切地監控產能利用率、市場需求以及其他市場因素。各項指標都顯示，今年剩餘期間玻璃供應應會維持吃緊，尤其是在大世代尺寸方面，主要因為電視需求強勁。第二，我們競爭對手的獲利能力偏低；即使過去兩年價格下滑幅度溫和，他們的獲利能力在此期間仍然下滑；因此，我們預期他們為了維持獲利，價格下滑速度將進一步放緩。基於這些以及其他原因，我們仍然相信，未來的逐季定價走勢將對我們更有利。接著談光通訊。第三季我們預期銷售額將較去年成長約10%，主要由光纖到府（FTTH）與資料中心的成長所帶動。

Turning to environmental, we see continued strength in the auto market, but expect weakness in the heavy-duty truck markets in North America and China to continue. We expect third-quarter environmental sales to be down slightly year-over-year, driven by foreign exchange. In specialty materials, we expect sales to be consistent with Q3 last year. This is an 8%, up sequentially, driven mainly by volume growth of Gorilla Glass in preparation for new product launches later this year. For the full year, as I said earlier, the handheld and IT retail market for 2016 has weakened, which impacts sales of Gorilla Glass. As a result, we now expect the sales in specialty materials will be consistent or down slightly from last year, but will be up sequentially each quarter. In Life Sciences, we expect Q3 sales to be up low single-digits versus last year despite a drag from our foreign-exchange.

再來談環境科技，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將持續。我們預期第三季環境科技銷售額將較去年同期小幅下滑，主要受外匯影響。在特殊材料方面，我們預期銷售額將與去年第三季一致。這將較前一季成長8%，主要由於為了今年稍晚的新產品上市而提前備貨，帶動 Gorilla Glass 的出貨量成長。就全年而言，如我先前所說，2016 年手持裝置與 IT 零售市場已轉弱，進而影響 Gorilla Glass 的銷售。因此，我們目前預期特殊材料的銷售額將與去年持平或小幅下滑，但每一季都會較前一季成長。在生命科學方面，儘管外匯帶來拖累，我們預期第三季銷售額仍將較去年同期成長低個位數百分比。

Turning to the consolidated outlook, we expected the gross margin to be approximately 43% and consistent with Q2. Gross margins expand versus last year, with growing volume in display and higher sales in optical communications. SG&A and RD&E spending will be approximately 14% and 7% of sales respectively. We expect other income/other expense to be a net expense of approximately $60 million. We expect Q3 total gross equity earnings to be approximately $15 million. As a reminder, we no longer have silicones equity earnings. We expect our effective tax rate for 2016 to be in the 15% to 16% range. Now, that concludes our outlook for the third quarter.

接著看合併展望，我們預期毛利率約為 43%，並與第二季一致。毛利率將較去年擴張，主要因顯示器業務出貨量成長，以及光通訊銷售額提高。SG&A 與 RD&E 支出分別約占銷售額的 14% 與 7%。我們預期其他收入／其他費用淨額約為 6,000 萬美元的淨費用。我們預期第三季權益法投資收益總額約為 1,500 萬美元。提醒一下，我們已不再有矽利康（silicones）的權益法投資收益。我們預期 2016 年有效稅率將落在 15% 至 16% 的區間。以上即為我們對第三季的展望。

Let me close by saying that we were pleased with the strong sequential growth in sales, in earnings in the second quarter. We are confident that Corning's performance we'll continue to improve with year-over-year sales and EPS growth in both the third and fourth quarters. We look forward to delivering on our long-term commitments to create strong value. We expect to generate more than $26 billion through 2019. We will invest $10 billion to grow and sustain our leadership. We also plan to distribute more than $12.5 billion to our shareholders. We are focusing our portfolio to increase our probability of success, reduce the cost of innovation and increase the barriers to entry for our competition. We have a rich set of growth opportunities. Thank you. Ann?

最後我想說，我們對第二季銷售與獲利的強勁逐季成長感到滿意。我們有信心，Corning 的表現將持續改善，第三季與第四季都將實現年增的銷售與 EPS 成長。我們期待履行長期承諾，創造強勁價值。我們預期至 2019 年將創造超過 260 億美元。我們將投資 100 億美元以成長並維持我們的領導地位。我們也計畫向股東分配超過 125 億美元。我們正聚焦投資組合，以提高成功機率、降低創新成本，並提高競爭對手的進入門檻。我們擁有豐富的成長機會。謝謝。Ann？

Thank you, Tony. I will open the lines now for questions. Cynthia?

謝謝你，Tony。我現在開放電話線供提問。Cynthia？

(Operator Instructions)

（接線員指示）

Mehdi Hosseini, SIG.

Mehdi Hosseini，SIG。

Going to your comment about pricing trend and this, in the glass segment, you're talking about price decline moderating. Can you help us understand the magnitude? Are you referring to -- is moderation a reference to down low single-digits or down 3% to 5%? Any additional color would be great. I have a follow-up.

回到你對定價趨勢的評論，在玻璃事業部，你提到價格下滑正在趨緩。你能幫我們理解一下幅度嗎？你所說的趨緩，是指下滑低個位數百分比，還是下滑 3% 到 5%？如果能再多提供一些說明會很有幫助。我還有一個追問。

Sure. It is low single-digits. It's similar to what we experienced in Q2.

當然。是低個位數百分比。與我們在第二季的經驗相近。

Okay. Then on the Gorilla side, I'm surprised that you're down-ticking again. Even if I were to look at the revised smartphone unit shipment, it still shows up 3% to 5% on a year-over-year basis. The display size is actually growing. So why is it that you're down-ticking? I'm asking you, in the context of, if there's any ASP pressure here?

好的。那在 Gorilla 這邊，我很意外你們又出現下修。即使我看修正後的智慧型手機出貨量，年增仍有 3% 到 5%。螢幕尺寸其實也在成長。那為什麼你們會下修？我想問的是，在這個脈絡下，是否有 ASP（平均售價）壓力？

No. This is all about volume. I think the piece that you're missing, Mehdi, is what's happening on the tablet market. Of course, from a glass standpoint, tablets are bigger, so that has an outsized impact. I think both the outlook for in smartphones and on tablets have come down in the second quarter. That's the primary reason that we now believe that market is going to be consistent to down slightly, as opposed to the way we thought it would grow in the past.

沒有。這完全是出貨量的問題。Mehdi，我想你忽略的一點是平板市場正在發生的事。當然，從玻璃的角度來看，平板尺寸更大，因此影響會被放大。我認為第二季對智慧型手機與平板的展望都下修了。這是我們現在認為該市場將持平到小幅下滑的主要原因，而不是像我們過去認為的那樣會成長。

Okay. Got it. Thank you.

好的。了解了。謝謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

Tony, a clarification on the guidance for the equity earnings of $15 million in the quarter. I believe you said that will now exclude Hemlock Semiconductor, which is going to up the P&L. I'm curious if you could help us understand what the contribution from Hemlock will be in the quarter?

Tony，關於本季權益法投資收益 1,500 萬美元的指引，我想釐清一下。我記得你說現在將排除 Hemlock Semiconductor，這會影響損益表。我想請你協助我們理解，Hemlock 在本季的貢獻會是多少？

I'm sorry, I maybe didn't explain that very well. It will be on the equity earnings line still. That $15 million is mostly from Hemlock. The difference is, that previously Hemlock was reported on an after-tax basis, because the taxes were taken care of at the Dow Corning level. Now, taxes are taken care of at the Corning level. So there's a slight change in the geography, but it's not off the equity earnings line.

抱歉，我可能沒有解釋得很清楚。它仍然會列在權益法投資收益那一行。這 1,500 萬美元主要來自 Hemlock。差異在於，以前 Hemlock 是以稅後基礎報告，因為稅務是在 Dow Corning 層級處理。現在稅務是在 Corning 層級處理。所以地理分布上會有些微變化，但並沒有從權益法投資收益那一行移除。

Wonderful. Thanks for the clarification. I guess, just dovetailing off the prior Gorilla Glass question, what are the volumes forecasted to be from a growth perspective in 2016? Then longer term, can you walk us through what will return Gorilla Glass to growth post their multi-year stagnation?

太好了。謝謝釐清。我想延續前一個 Gorilla Glass 的問題，從成長角度來看，2016 年的出貨量預估會是多少？另外更長期來看，你能否說明在多年停滯之後，什麼因素會讓 Gorilla Glass 重回成長？

For us in Gorilla, I think as Tony said, when we came into the year, we felt the market was going to grow, albeit, at a slower rate. Now, pretty widely reported that the expectations are for the market to be up pretty flattish. So now then, you'd start where do our strategies begin to impact our revenue realization in that slower growth market, as well as what will be the next uptick in the market one way or the other. So let's deal with the second, first. Uptick in the market for us, it really does get driven by how exciting a product our customers come out with and its impact on consumers.

就我們的 Gorilla 而言，我想如 Tony 所說，年初我們認為市場會成長，只是成長速度較慢。但現在外界普遍報導的預期是市場大致持平。因此接下來要看的是，在這個較低成長的市場中，我們的策略將如何開始影響我們的營收實現，以及市場下一次回升會在何時、以何種方式出現。那我們先談第二點。對我們而言，市場的回升確實取決於客戶推出的產品有多令人興奮，以及它對消費者的影響。

So I can't give much insight into that for you, but we do believe that we see some pretty exciting products coming that should help on the total market growth. Now then, let's take a look at us in a more micro way. We would normally expect that we're going to grow faster than the market. That is because of our superior product. We should be always in a sort of share gaining mode, as well as that as we introduce higher value add products, we will get higher revenue per device.

所以我沒辦法就那點給你太多見解，但我們確實相信，我們看到一些相當令人振奮、即將推出的產品，應該能有助於整體市場成長。那麼，接下來讓我們用更微觀的角度來看我們自己。一般而言，我們會預期我們的成長速度會快於市場。那是因為我們的產品更具優勢。我們應該會一直處於某種提升市占的模式；同時，隨著我們導入更高附加價值的產品，我們每台裝置的營收也會提高。

I think this year, we have an interesting dynamic in that customer mix can really make an impact. We have some customers where we do virtually all of their cover glass needs and some, where we just do the majority. So which customer gets impacted, can impact us, a little more outsized when you're dealing with the slower growth market. Then second is just been timing on adoption of some of the higher value-added products and our ability to manufacture.

我認為今年有一個有趣的動態，就是客戶組合確實可能造成影響。我們有些客戶的蓋板玻璃需求幾乎全部都由我們供應，也有些客戶我們只供應大部分。因此，哪一個客戶受到影響，就可能影響到我們；在市場成長較慢時，這種影響會顯得更為放大。第二個因素就是一些更高附加價值產品的採用時點，以及我們的製造能力。

A good example of this is Fire, where we continue to get pretty good pull, on Fire, especially for wearables. But the difficulty in that manufacturing process has pushed us a little bit out in time versus our original launch dates. But overall, we would look over the long-term for this business for us to continue to have pretty robust growth and to be able over that four-year timeframe to double our revenue on this overall platform. It also includes things like augmented reality but more on that to come in the future.

一個很好的例子是 Fire，我們在 Fire 上持續獲得相當不錯的拉貨，尤其是在穿戴式裝置方面。但該製程的製造難度，使得我們相較於原先的上市時程稍微往後延。不過整體而言，從長期來看，我們預期這項業務仍將維持相當強勁的成長，並且在那四年的時間範圍內，讓我們在這個整體平台上的營收翻倍。其中也包含像擴增實境之類的應用，但未來我們會再進一步說明。

Great. Then just one more, if I may, is on the gross margin line that was the largest positive surprise relative to our expectations. If we go back and look at multi-year trend, we've generally had a negative trajectory outside of acquisition benefits. I guess my question to, Tony, is can you walk us through outside of the optical communication volumes, what drove gross margin to rebound? Based on the guidance of sustaining this level at 43%. If we take maybe an intermediate to longer-term view, are we at a point where Corning's gross margin should be stable to having a poor trajectory from current levels?

很好。那如果可以的話，我再問最後一個：毛利率這一項相對於我們的預期是最大的正向驚喜。如果回頭看多年的趨勢，除了併購帶來的效益之外，我們通常看到的是走勢偏負向。我想問 Tony 的是：撇除光學通訊的出貨量之外，能否帶我們梳理一下，是什麼推動毛利率回升？基於你們指引要在 43% 維持這個水準。如果用中期到長期的角度來看，我們是否已經來到一個點：康寧的毛利率應該會從目前水準趨於穩定，而不是延續先前較差的走勢？

Sure. I'm happy to do that. I think compared to Q1, really two things. One was the optical communications improvements. Both in terms of sales, but the amount of money that we were spending on our software project issue also reduce during the quarter. There was a lot of one-time manufacturing inefficiencies, they got better in the second quarter. That helped us. The fact that we also have volume growth up in the high single-digits on a display, also helped us considerably. That's how we ended up with the 43%.

當然。我很樂意說明。我認為相較於第一季，主要是兩件事。第一是光學通訊的改善。不僅是銷售表現，另外我們在軟體專案問題上所花的費用，在本季也有所下降。先前有不少一次性的製造效率不彰，第二季有所改善。這對我們有幫助。此外，我們在顯示器業務的出貨量也有高個位數的成長，同樣對我們幫助很大。這就是我們最後達到 43% 的原因。

When you look out into Q3, we expect to see growth. We see some of it in optical communications and some of it in display and specialty materials. When you average those out, keeping in mind that optical communications gross margins are lower than the corporate average and the others are higher, we end up back at that 43% level. As you look forward, it obviously is going to depend on where the mix of our businesses are, but I think being in that 43% plus level is certainly lower aiming from an overall business standpoint.

展望第三季，我們預期會看到成長。其中一部分來自光學通訊，一部分來自顯示器與特殊材料。把這些平均起來，同時記住光學通訊的毛利率低於公司平均，而其他業務高於公司平均，我們最後會回到 43% 這個水準。再往後看，當然會取決於我們各項業務的組合，但我認為從整體業務角度來看，43% 以上的水準確實是我們的下限目標。

Great. Thank you for taking my questions. Good luck.

很好。謝謝你回答我的問題。祝你們好運。

Thanks.

謝謝。

Rod Hall, JPMorgan.

JPMorgan 的 Rod Hall。

I just wanted to ask on display, Tony, you guys are keeping the display guidance unchanged for the full year, at least the market guidance. The seasonality implication for that, at least on our calculations, is that Q4 ends up higher than normal seasonally? So I wanted to see if we get more color on why you see that occurring given the weakness we see in smartphones and elsewhere in the consumer electronics market?

我想就顯示器問一下，Tony，你們維持全年顯示器指引不變，至少市場指引是如此。依我們的計算，這樣的季節性含意是第四季會比正常季節性更高？所以我想了解一下，在我們看到智慧型手機以及其他消費性電子市場疲弱的情況下，你們為何會認為會出現這種情況，能否提供更多說明？

Then secondly, I wonder if you guys could comment on the specialty guidance reduction? That is consistent with what see in the market as well, which is weak demand. But I wonder, could you give us more color on regional demand weakness? Where do you see things incrementally developing weaker as you sit right now? How do you think the regional demand plays out through the back end of the year? Thank you.

第二，我想請你們評論一下特殊材料指引下修。這也與我們在市場上看到的情況一致，也就是需求疲弱。但我想問的是，你們能否就區域性的需求疲弱提供更多細節？以你們目前所見，哪些地區的情況在邊際上變得更弱？你們認為區域需求在今年下半年會如何發展？謝謝。

Okay. Let me start with the display demand question. What really drives this market, Rod, of course, is what happens in TVs. Even though it is true that IT and handheld demand is down, it has a small impact on the overall display market. But really it matters is what happens in TVs. We expect that TV units are going to be up 2% on a year-over-year basis. As we go through the year, we've seen some stronger demand than what we expected, in particular in North America but also in Europe.

好的。我先從顯示器需求的問題開始。Rod，這個市場真正的驅動因素，當然是電視的表現。雖然 IT 與手持裝置的需求確實下滑，但對整體顯示器市場的影響其實不大。真正重要的是電視的情況。我們預期電視出貨量年增 2%。隨著今年推進，我們看到的需求比原先預期更強，特別是在北美，同時在歐洲也是如此。

There's been some areas that have been weaker like in Latin America, Middle East and Africa and also Japan has been a little bit weaker, but when you net that out it comes back to the 2%. The other really important factor is what happens with screen size. From a screen size standpoint, we're looking at screen size growth greater than 1.5 inch. So when you add all that together, even though, it's a little bit weaker on the other mobile consumer electronic products, that still puts us in that 8% to 10% range.

有些地區相對較弱，例如拉丁美洲、中東與非洲；另外日本也稍微弱一些，但整體加總後仍回到 2%。另一個非常重要的因素是螢幕尺寸的變化。就螢幕尺寸而言，我們看到的尺寸成長超過 1.5 吋。因此把這些因素加總起來，即使其他行動消費性電子產品稍微疲弱，仍然讓我們落在 8% 到 10% 的區間。

Tony, do you still -- do you see seasonality better than normal though in Q4? Because that's what seems to be implied by that assumption?

Tony，你仍然——你們是否看到第四季的季節性會比正常更好？因為從那個假設看起來似乎是這樣？

Yes. We do. Keep in mind, that last year a lot of that just depends on where the overall demand actually is and how panel makers are adjusting their inventories at the given point. Given the strength in demand, we do see that.

是的。我們確實如此認為。請記住，去年很多情況其實取決於整體需求實際落點，以及面板廠在特定時間點如何調整庫存。鑑於需求的強勁，我們確實看到那樣的情況。

Rod, it's a very legitimate question. In that fourth quarter, it's a lot about value chain management. We're coming off a period, where you can remember last year in Q4 and Q1, we were seeing a correction of the value chain. We think that's behind us. But you're right, that quarter four, it's going to get influenced a lot on how people feel about that selling season. So always worth some thought there, but that's the way we see it.

Rod，這是一個非常合理的問題。第四季很大一部分在於價值鏈管理。我們剛走過一段期間——你可以回想去年第四季與第一季，我們看到的是價值鏈的修正。我們認為那已經過去了。但你說得對，第四季會在很大程度上受到大家對那個銷售旺季的信心所影響。所以這點永遠值得多加思考，但這就是我們目前的看法。

Okay. Thanks, Wendell. Then what about the -- just how you see regional demand developing on IT and handhelds?

好的。謝謝，Wendell。那關於——你們怎麼看 IT 與手持裝置的區域需求發展？

I don't think we have that bit of -- much remarkable there, that developing markets overall were part of the spot of weakness, I think, as you take a look in that space, right? But I think, it's a little -- the data at that level, I think we have a little bit less clarity on than we do on something like TV, that really drives glass demand. But I think by sort of peeling apart some of the comments by our customers in conversations with them, that's what we're picking up, is that the developing market was a little bit weaker and less excitement about product launch this year.

我不認為我們在那方面有太多——特別值得一提的內容；整體而言，新興市場是相對疲弱的區塊之一，我想你看那個領域時也是如此，對吧？但我認為，在那個層級的數據上，我們的清晰度可能比不上像電視這種真正驅動玻璃需求的品類。不過，透過把我們客戶在對話中的一些評論拆解來看，我們得到的訊息是：新興市場今年稍微更弱，且對產品發表的期待感也比較低。

Great. Okay, thank you, guys.

很好。好的，謝謝各位。

Vijay Bhagavath, Deutsche Bank.

Vijay Bhagavath，德意志銀行。

Strong results here. I have a question on the strength in Northern data center, fiber-to-the-home. Help us understand the sales dynamics, like, would you have multi-quarter design wins at one of the major cloud companies for these data center fiber build-outs and similar design wins at the major service providers? So have you publicly announced outside plan fiber build-outs? I want to better understand the sales design win dynamics in optical. Thanks.

這裡的結果很強勁。我有一個問題，關於北美資料中心、光纖到府（FTTH）的強勁表現。請幫我們理解銷售動態，例如：你們是否在某家主要雲端公司那裡，針對這些資料中心光纖建置取得跨多季的設計導入（design win），並且在主要服務供應商那裡也有類似的設計導入？所以你們是否已對外公開宣布場外（outside plant）光纖建置？我想更好地理解光學業務中的銷售／設計導入動態。謝謝。

It sounds like you actually understand them, Vijay. (laughter) That's exactly right. The only little correction I would make is it's a lot more than multi-quarter. When we do something like fiber-to-the-home systems, our development cycles with our customers go for a pretty long time. Then it sort of sets and locks on, this is the design that they're going to use. Then away we go.

聽起來你其實已經理解了，Vijay。(笑聲) 沒錯，就是這樣。我唯一想稍微更正的是，這遠不只是跨多季。當我們做像光纖到府系統這類專案時，我們與客戶的開發週期會持續相當長一段時間。接著設計就會定型並鎖定：這就是他們要採用的設計。然後我們就往前推進。

Then what really provides the dynamic there isn't really sort of share shift or things like that, it basically comes down to simple works efforts and were they want to build networks. So, it sounds to me like you've got a good understanding. The hyper data centers and data center pieces, our share has been growing. Both our share of overall spend as optical and then sort of within in optical. That's another one where our position is strong, so the more they build, the better we get then.

因此，真正帶來動能的並不是市占移轉之類的因素，基本上取決於單純的施工投入，以及他們想在哪裡建網。所以，聽起來你理解得很到位。在超大型資料中心與資料中心相關領域，我們的市占一直在成長。不論是我們在光學整體支出中的占比，或是在光學內部的占比。這也是我們地位很強的一塊，所以他們建得越多，我們就越受益。

Then a quick follow-on. Thanks to you. The AFOP, the land fiber acquisition, is it helping you open doors in the Asia-Pacific in particular? Thanks.

接著一個簡短的追問。謝謝你。AFOP 這筆陸纜光纖收購案，是否有助於你們特別在亞太地區打開更多大門？謝謝。

Interesting. Yes, they have some position, especially in some of the OEMs, that we don't have in the Asia-Pacific. We're really, really interested in that. It wasn't the primary driver of the transaction, which is we want to get as big as we can in hyper data centers. But I think you've made a good observation there. We think that could be a nice surprise, nice added benefit for us if it continues to evolve the way it seems like it could, Vijay.

有意思。是的，他們在亞太地區，特別是在部分 OEM 客戶那裡，確實有一些我們沒有的布局。我們對此非常、非常感興趣。這並不是這筆交易的主要驅動因素；主要原因是我們希望在超大型資料中心領域做到越大越好。但我認為你的觀察很到位。我們認為如果事情持續朝看起來可能的方向發展，這可能會成為一個不錯的驚喜、對我們而言是很好的額外效益，Vijay。

Thanks. Great results. Congratulations to you and your team.

謝謝。結果很棒。恭喜你和你的團隊。

Thank you, sir.

謝謝您，先生。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

Two questions for me, please. First, on Gorilla Glass, you noted how Gorilla Glass 4 mix is actually helping your profitability now. Can you talk about how that mix plays out in terms of where you are as a percentage of maybe shipments roughly? Then how Gorilla 5 impacts that mix maybe over the next few quarters and also the profits going forward? Secondly, Tony, I know you mentioned that the cash flows are back-end loaded for the year, but are we still looking at similar expectations as to what you were thinking a quarter ago or at the analyst meeting for cash flow from operations, around $3 billion? Or is that maybe a little bit lighter now? Thanks.

我有兩個問題，謝謝。第一個，關於 Gorilla Glass，你提到 Gorilla Glass 4 的產品組合（mix）現在其實正在幫助提升你們的獲利能力。你能談談這個組合的情況嗎？例如以出貨量大概來看，你們目前占比大約是多少？另外，Gorilla 5 在未來幾季可能如何影響這個組合，以及未來的獲利？第二個，Tony，我知道你提到今年的現金流會偏向下半年（back-end loaded），但我們對營運現金流的預期是否仍與你們一季前或在分析師會議時的看法相近，大約 30 億美元？還是現在可能會稍微低一些？謝謝。

I will start with that question. Probably from an overall standpoint, it's a little bit lighter than that. If you think about what drives our cash flow, we did have a one-time payment that legal settlement that wouldn't have been in those projections originally. Then of course, the other big factor is where income actually ends up on a year-over-year basis. Our first quarter was obviously softer than what we originally projected, but it still going to be quite strong. It's still going to be well -- closer to $3 billion that it would be to, say, $2.5 billion.

我先回答那個問題。從整體角度來看，可能會比那個數字稍微低一些。如果你想想驅動我們現金流的因素，我們確實有一筆一次性的法律和解付款，原本不會包含在那些預測之中。當然，另一個重大因素是全年獲利最終落在什麼水準、相較去年如何。我們第一季顯然比原先預測更疲弱一些，但全年仍會相當強勁。仍會更接近 30 億美元，而不是例如 25 億美元。

To your first question, Steven, I would love to answer that question, but they're not letting me tell you. (laughter) So let me describe it in a little broader sense, rather than give you my direct answer, about what we're trying to do. So, the market has a certain dynamic in that how do our customers want to position themselves relative to consumers. That's why we have open to us different products at different price points. So the way Gorilla Glass 3 plays out is, we really sort of aim that at those of our customers, who are seeking to get benefits of Gorilla relative to soda-lime or other aluminosilicate providers, but are highly price-sensitive. So the more that we gain, that's all great because as you know, the margins in Gorilla are terrific, right? But that price will be moving direct in response to competitors.

至於你的第一個問題，Steven，我很想回答，但他們不讓我告訴你。(笑聲) 所以我用更宏觀的方式來描述我們想做的事，而不是直接給你答案。市場有一個特定的動態：我們的客戶想如何相對於消費者來定位自己。這也是為什麼我們能提供不同價位帶的不同產品。Gorilla Glass 3 的定位是：我們主要瞄準那些希望相較於鈉鈣玻璃（soda-lime）或其他鋁矽酸鹽供應商，取得 Gorilla 優勢、但對價格非常敏感的客戶。因此我們拿到越多份額都很好，因為如你所知，Gorilla 的毛利非常好，對吧？但價格也會因應競爭對手而直接調整。

GG 4, GG 5 what we're seeking to do there is, for those of our customers, who want to use -- create absolute premium products that are as thin as can be and as damage resistant as can be, they're willing to pay for that innovation. Therefore, we introduced those products at a premium. Our overall desire is that, overall, we can continue to push down the cost of Gorilla, while having the price on average so to not fall so much. That's exactly what we're trying to do in increasing our one piece of increasing our revenue per device. Now, why the folks don't want us to give guidance on anything like that is, back to the customer mix question that I addressed before.

至於 GG 4、GG 5，我們想做的是：對於那些希望打造絕對高階產品、要做到盡可能薄且盡可能耐損的客戶，他們願意為這些創新付費。因此，我們以溢價推出這些產品。我們整體的目標是：在持續降低 Gorilla 成本的同時，讓平均售價不要下滑太多。這正是我們努力的方向，也是提升單機（per device）營收的一部分。至於為什麼大家不希望我們對這類事情提供指引，原因又回到我先前提到的客戶組合問題。

Now, which customer does what starts to get really important, if you're trying to pick from your gross margin model, how everything is going to work out. In a market that's already pretty tough to predict, given how the value chain moves, that added degree of complexity won't make us too accurate. But you're on exactly what it is we're trying to do in that it will be a mix of how much value type brands are going in a certain quarter versus premium cycle upgrade to the new glass. Does that make sense, Steven?

因為哪個客戶採用什麼產品會變得非常重要；如果你想從毛利模型去推估最終會如何呈現，這就很關鍵。在一個本來就很難預測的市場中，因為價值鏈的變動方式多端，再加上這一層複雜度，我們也不會變得更精準。但你抓到重點了：這會取決於某一季價值型品牌的比重，與高階換機週期升級到新玻璃的比重之間的組合。這樣說有道理嗎，Steven？

Yes. That's very helpful. I appreciate all that color. Thanks so much.

有。這非常有幫助。我很感謝這些補充說明。非常謝謝。

Doug Clark, Goldman Sachs.

Doug Clark，高盛。

First one, on display and glass pricing. I noticed you didn't mention the FX environment in the yen move. I've got a number of questions, so I wanted to get your opinion if the recent strengthening of the yen has any impact or could factor into conversations about future glass pricing?

第一個問題，關於顯示器與玻璃的定價。我注意到你沒有提到日圓匯率變動的外匯環境。我有幾個問題想請教：你認為近期日圓走強是否有任何影響，或可能在未來玻璃定價的討論中成為一個因素？

Sure. I would be happy to answer that. We've got to obviously to enter this based on our analysis of the situation. We do recognize that the yen fluctuates. That will impact both glass procurement costs for our customers -- they buy glass in yen, they sell the panels in dollars. We also know that our competitors, the Japanese glassmakers, could also get a temporary translation benefit when the yen strengthens or, of course, a temporary loss when it weakens against the currencies of the countries they manufacture.

當然。我很樂意回答。我們顯然必須基於對情勢的分析來切入這個問題。我們確實認知到日圓會波動。這會影響我們客戶的玻璃採購成本——他們用日圓買玻璃、用美元賣面板。我們也知道，我們的競爭對手、日本玻璃製造商，在日圓走強時也可能獲得暫時性的換算利益；當然，當日圓相對於其製造所在地貨幣走弱時，則可能出現暫時性的損失。

But we don't think this is going to be a big impact. The effect on customers is not as big as it used to be. Glass used to be 15% to 20% of the customer material cost, it's now only about 8%. Then the second factor is our competitors are not as profitable as they used to be. Any benefit they get from yen appreciation may only be temporary. So for these reasons, we don't expect to see a meaningful pricing impact, a result of the yen movement. The perfect example of that is what happened in Q2, where the yen strengthened considerably but price declines were moderate. So we don't believe this is going to have a big impact, but we recognize there's a couple of areas where we are obviously monitoring it.

但我們不認為這會造成很大的影響。對客戶的影響已不像以前那麼大。玻璃過去占客戶材料成本的15%到20%，現在大約只有8%。第二個因素是，我們的競爭對手不像以前那麼賺錢。他們從日圓升值得到的任何好處可能只是暫時的。因此，基於這些原因，我們不預期會因日圓走勢而看到有意義的定價影響。最好的例子就是第二季發生的情況：日圓明顯走強，但價格下滑幅度溫和。所以我們不相信這會造成很大的影響，但我們也認知到有幾個領域我們顯然正在持續監控。

A worthy question, Doug, a worthy question.

這是個很值得問的問題，Doug，確實是個很值得問的問題。

Sure. No, that makes sense. Thanks for the detail. Second question on -- related to more glass volumes than what's been happening in the supply chain. There seems to be a bit of a shift from LCD panel capacity to OLED panel capacity. I'm wondering if that impacts glass volumes either near term or kind of leads to industry rationalization long term?

當然。不，這很合理。謝謝你提供這些細節。第二個問題——與玻璃出貨量更相關，而不是供應鏈正在發生的事情。看起來LCD面板產能正有些轉向OLED面板產能。我想知道這是否會在短期影響玻璃出貨量，或是長期導致產業整併？

So, LCD/OLED, let me start macro and then I'll get right down into the micro, particular customer capacity shifts one way or the other. So in macro, basically when we talk about OLED, you're only really talking about consumer -- mobile consumer electronics, right, really phone-type business, which is a relatively small, right, really small. (laughter) Like under a single-digit percent sort of small sort of percent of where glass changes in total.

關於LCD/OLED，我先從宏觀談起，然後再深入到微觀，特別是某些客戶產能往哪個方向移轉。從宏觀來看，基本上當我們談OLED時，你真正談的是消費性——行動消費電子，對吧，主要是手機類的業務，而那其實相對很小，對吧，真的很小。(笑聲) 小到在整體玻璃需求變化中占比不到個位數百分比。

Now -- overall, I think all the adjudication of large sized OLED versus large-sized LCD, LCD continues to just get stronger and stronger relative. So, all we're talking about is that piece. Now, there have been rumors about one of our major customers taking some of their capacity that currently makes LCD large-size and take that same plant and make more of the small size [poly emit OLED]. We can't comment on, is that is true or not? But let's deal with it in a more theoretical way. So here is what happens. What says the overall glass demand is going to be what happens in the market, which customer of ours makes it, okay, doesn't impact, is the glass demand there or not?

現在——整體而言，我認為關於大尺寸OLED對比大尺寸LCD的各種評估，LCD相對而言仍持續變得更強、更強。所以我們談的就是那一塊。目前有傳聞說，我們的一家主要客戶可能會把部分目前用來生產大尺寸LCD的產能，將同一座工廠改為生產更多小尺寸的[poly emit OLED]。我們無法評論這是否屬實。但我們用更理論的方式來看。事情是這樣發生的：決定整體玻璃需求的是市場會怎麼走；是我們哪一家客戶來生產，坦白說不影響——關鍵在於玻璃需求是否存在。

In micro, we have some customers where we have an incredibly high share and some customers where we have more moderate share. So what we would expect overall is that we pick up what our average share is of whatever that market is. So we don't expect that to be a really big market shift for us. Then specific for us on poly emit OLED is demand there net increases demand on us for glass, because our relative share there is very, very high. Our relative share in the displays it is replacing, which is basically low temperature polysilicon displays for phones is lower. So I think overall, you can get some temporal impact, I'm not looking at that as being a huge driver. Make sense?

從微觀來看，我們在某些客戶那裡的市占非常高，在另一些客戶那裡則較為中等。因此我們整體預期是：無論那個市場是什麼，我們會拿到我們在該市場的平均市占。所以我們不預期那會對我們造成很大的市場移轉。另外，就我們而言，在poly emit OLED上，需求的出現會淨增加我們的玻璃需求，因為我們在那裡的相對市占非常、非常高。而在它所取代的顯示技術上——基本上是手機用的低溫多晶矽（LTPS）顯示——我們的相對市占較低。所以我認為整體上可能會有一些時間上的影響，但我不把它視為很大的驅動因素。這樣有道理嗎？

That does. Thanks for that extra detail. I appreciate it.

有的。謝謝你補充這些細節。我很感謝。

Stanley Kovler, Citi Research.

Citi Research 的 Stanley Kovler。

I just wanted to ask, actually, a similar set but a different vein. So, if the yen strengthened and you have some opportunity for additional hedging in the out years given multi-year lows for the yen, were there any discussions or additional hedging taken? Then I have a follow-up. Thank you.

我其實想問一組類似但角度不同的問題。如果日圓走強，而日圓又處在多年低點，使得你們在未來幾年有機會做更多避險，是否有任何討論或採取額外的避險？然後我還有一個追問。謝謝。

There was not any additional hedges taken. There was lots of discussions about it. (laughter) We are 60% -- or 70% hedged out through 2022. So it is something that we are spending time modeling. Also thinking both in terms of what the outlying demand is out in those years, maybe different instruments that we could be using as opposed to the forwards we've been using. So we're doing a lot of work on it. But we didn't do anything in the second quarter.

沒有採取任何額外的避險。但有很多討論。(笑聲) 我們已經避險了60%——或70%，一路做到2022年。所以這是我們正在花時間建模的事情。也在思考未來那些年度的外部需求可能是什麼樣子，以及我們是否可以使用不同的工具，而不只是我們一直在用的遠期合約。所以我們做了很多工作。但我們在第二季沒有做任何動作。

Got it, thanks. Then back to display. During the quarter, in late May, you started to suggest that there's a possibility of unit volumes tracking towards more of 1.5% growth versus the original 2% guidance and now back to 2%. That really is interesting because it didn't really impact your screen size inputs as well. I would think that with the strengthening of the TV space in general, that there would be some discussions about maybe screen size tracking closer to 2 inches as well. I know those are two separate topics, but just the market in general.

了解，謝謝。那回到顯示器。在本季期間、5月下旬，你們開始暗示單位出貨量成長可能會更接近1.5%，而不是原先指引的2%，但現在又回到2%。這點很有意思，因為它似乎也沒有真的影響你們對螢幕尺寸的假設。我會認為，隨著整體電視市場轉強，應該也會有一些討論，螢幕尺寸成長是否也會更接近2吋。我知道這是兩個不同的議題，但都是關於整體市場。

Then looking out into next year, you talked about your share kind of being relatively stable, irrespective of where customers are. But if that customer of yours does shift to different technology and let's say, sells off the equipment for gen-7 and that goes to even a different region, how should we think about your share in other regions and with new customer entrants in the panel space? Thank you.

再看明年，你提到不論客戶在哪裡，你們的市占大致會相對穩定。但如果你們那位客戶真的轉向不同技術，假設把第7代線（gen-7）的設備賣掉，而設備又流向另一個地區，我們應該如何看待你們在其他地區的市占，以及面板產業中新進客戶加入時的情況？謝謝。

No. You are absolutely right on the TV demand. We saw in the data in the last couple of months, was stronger demand in North America and Europe and a lot of those were larger-sized TVs. So there was also a little bit of tick-up in our projection on screen sizes. But when you add it all up, we're still in that range of 8% to 10%. We realize, as we get data every month, it can change the absolute number little bit, but it doesn't change what we think is the overall underlying demand, which is up in the 8% to 10% range.

不。你對電視需求的看法完全正確。我們在過去幾個月的數據中看到，北美與歐洲需求更強，而且其中很多是大尺寸電視。所以我們對螢幕尺寸的預測也有小幅上調。但把所有因素加總起來，我們仍落在8%到10%的區間。我們也知道，隨著每個月拿到新數據，絕對數字可能會有些微變動，但不會改變我們對整體基本需求的判斷——也就是在8%到10%的範圍上升。

On the moving around of capacity, I think what's really important to remember is, how small sort of one gen-7 fab is in the overall scheme of the enormous size of this market. So in a way, that capacity could end up one place or another, but you're within sort of the error bars on the overall market range. I think a good way to just think about it is sort of wherever it goes, we'll probably end up one way or the other maintaining a pretty stable share. Our average share of across the entire market, just because -- its just not that big a deal, right, relative, I mean there was a time, when one gen-7 fab that occupied most of my life, right, but now it's like, another gen-7 fab. (laughter) Right?

至於產能移轉，我認為最重要的是要記得：在這個龐大市場的整體格局中，一座第7代廠（gen-7 fab）其實有多小。所以某種程度上，那些產能可能最後落在這裡或那裡，但都還在整體市場區間的誤差範圍內。我覺得一個好的理解方式是：不管它移到哪裡，我們大概都會以某種方式維持相當穩定的市占。我們在整個市場的平均市占，因為——這真的沒那麼重要，對吧，相對而言；我的意思是，曾經有一段時間，一座第7代廠幾乎占據了我大部分的生活，對吧，但現在就像是，又一座第7代廠而已。(笑聲) 對吧？

George Notter, Jefferies.

Jefferies 的 George Notter。

I guess I was curious, going back to the TV unit assumptions, positive 2% year-over-year. If I look at, for example, the market research firm, IHS, I know those guys are looking for year-on-year comparisons that are negative on TV sales. Obviously, it's such a huge variable for you. Do you have any comments on why your assumptions might be different from theirs? Then also I wanted just to ask on Iris, I think you said earlier in the monologue that you were seeing more commercial attraction. Any detail you can give us on exactly what you're seeing there in terms of design wins or revenue would be great. Thanks.

我想我只是好奇，回到電視出貨量的假設，你們假設年對年成長正 2%。如果我看例如市場研究機構 IHS，我知道他們在看電視銷售的年對年比較是負成長。顯然，這對你們來說是個非常大的變數。你們能否評論一下，為什麼你們的假設可能會和他們不同？另外我也想問 Iris，我想你先前在開場說明時提到你們看到更多商業上的吸引力。你能否更具體說明你們在那裡看到的是什麼，例如設計導入（design wins）或營收方面的細節？謝謝。

On the TV unit size, we do recognize that some forecasters have different projections than we do. But it is so important to us that we spend a lot of time looking at things by region. A good -- intelligence understanding it, the very end markets and what's happening. We feel very good about the idea that we will be up about 2%. Especially, what's happened in the last couple of months relative to TV demand, in particular, in North America, where it is a good bit stronger than what we projected at the beginning of the year.

關於電視出貨量規模，我們確實認知到有些預測機構的推估與我們不同。但對我們而言非常重要的是，我們花很多時間按區域來看各項因素。對終端市場以及正在發生的事情有良好的情報理解。我們對於出貨量約成長 2% 這個看法感覺非常良好。尤其是過去幾個月電視需求的變化，特別是在北美，其強勁程度明顯高於我們年初的預估。

Just to add, I think what -- on TV units, it is a legitimate point of view differences. But whether or not you thought TV units were going to be up 1%, up 2% or even relatively flat, that -- you can remember, I think we actually showed it to you on this slide on the 2016 outlook, when Tony was going through his talk, that TV units up about 2% would be a growth contribution in glass area by about 2%. But the screen size being greater, up greater than 1.5 inches, that's driving 5% to 6% growth.

補充一下，我認為關於電視出貨量，這確實是觀點差異的合理議題。但不論你認為電視出貨量會成長 1%、成長 2%，甚至大致持平——你可以記得，我想我們其實在 2016 年展望那張投影片上給你們看過，當 Tony 在簡報時提到，電視出貨量約成長 2%，對玻璃面積的成長貢獻大約是 2%。但螢幕尺寸變大、增加超過 1.5 吋，則帶動 5% 到 6% 的成長。

So, what we're hearing from the market is, yes, television unit growth may be a little bit softer than what we would have thought in the very beginning of the year, but actually like a previous question, screen size is maybe a little bit bigger than what we thought. So it's pushing us in those ranges. But it could be very legitimate that -- rather than coming in around 2%, it comes in around 1%. All of that's within the range of possibility. That's why we try to give you an idea of how to factor the various pieces, so you can plug in what it is, your opinion is. Then sort of figure out from that what's going to happen in glass demand.

所以，我們從市場聽到的是：是的，電視出貨量成長可能比我們年初所想的稍微疲弱一些，但其實就像前一個問題一樣，螢幕尺寸可能比我們原先預期的稍微更大。因此把我們推到那些區間。但也完全有可能——不是落在約 2%，而是落在約 1%。這些都在可能範圍之內。這就是為什麼我們試著讓你了解如何把各個部分納入考量，這樣你就可以把你自己的看法代入。然後再由此推算玻璃需求會發生什麼變化。

Then the final piece is value chain adjustments are even going to be bigger than that television unit piece. That's how we all end up at the bottom line at mid single-digits in square footage growth for us, for the market. I think that's okay. Right. So, Iris is continuing to get some really good commercial transaction. With -- now, we're up to a number of customers that are really evaluating it very strongly and some are choosing to launch with it, right, it's still early days.

最後一個部分是，價值鏈調整的影響甚至會比電視出貨量那一塊更大。這也是為什麼我們最後在結論上，對我們、對市場而言，玻璃平方英尺的成長會落在中個位數百分比。我覺得這樣可以。對。至於 Iris，持續獲得一些非常不錯的商業交易進展。目前——我們已經有多家客戶正在非常積極地評估，有些也選擇以它來推出產品；當然，現在仍是早期階段。

Many of you may have heard me speak, I tend to think about disruptive innovations like this, because it's highly disruptive. You're displacing an incumbent technology of PMMA with a brand-new material set to be able to make televisions thinner and with smaller bezels. That it tends to go in phases, you go from the idea, then you get a breakthrough. Then if it's really good, you can get a break-out and then you have to defend your really strong position.

你們很多人可能聽過我談到，我傾向用這種方式來看待像這樣的顛覆式創新，因為它高度顛覆。你是在用一套全新的材料組合取代既有的 PMMA 技術，讓電視可以做得更薄、邊框更窄。這通常會分階段發展：先有概念，然後出現突破。接著如果真的很好，就可能出現爆發式擴張（break-out），然後你必須捍衛你非常強勢的地位。

I'm getting increasingly confident we're going to have a breakthrough. It's going to penetrate large edge-lit TVs. It's going to have a meaningful penetration into that. Now, whether or not we've got a break-out and this becomes a really dominant technology choice for edge-lit, it's just too early to tell. But the good news is, the increased commercial transaction is increasing our confidence that you're going to start to see some multiple sets introduced using this technology. We're going to penetrate the market some, but to be significant, we've still got a ways to go.

我越來越有信心我們會出現突破。它將滲透到大型側入式（edge-lit）電視。在那個領域會有具意義的滲透率。至於我們是否已經達到爆發式擴張，並讓它成為側入式的真正主流技術選擇，現在還太早下定論。但好消息是，商業交易活動的增加，提升了我們的信心：你們將開始看到有多個系列採用這項技術推出。我們會在市場上取得一些滲透，但要達到顯著規模，我們仍然還有一段路要走。

Thank you. So that was our last question.

謝謝。所以那是我們最後一個問題。

Great. Well, thanks to everyone for listening and the terrific questions. We wish you an enjoyable summer and look forward to updating you on our framework progress and results throughout the rest of the quarter. Be well.

很好。那麼，感謝各位收聽以及提出很棒的問題。祝各位夏日愉快，我們也期待在本季剩餘期間持續向各位更新我們的架構進展與成果。保重。

Thank you, Wendell. Just a couple announcements from IR. We will be at the Citi conference on September 7 in New York. A telephone playback of this call is available beginning at 11AM Eastern today and will run until 5PM on Wednesday August 10. To listen, dial 800-475-6701 and the access code is 397-185. The audio cast is available on our website for one year. Cynthia, that concludes our call. Please disconnect all lines.

謝謝你，Wendell。投資人關係（IR）這邊再補充幾項公告。我們將於 9 月 7 日在紐約參加 Citi 會議。本次電話會議的電話回放將於今日美東時間上午 11 點起提供，並持續至 8 月 10 日（週三）下午 5 點。收聽請撥 800-475-6701，存取碼為 397-185。網路音訊將在我們網站上提供一年。Cynthia，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 your conference call for today. Thank you for your participation and for using AT&T Executive TeleConference Service. 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，並感謝使用 AT&T Executive TeleConference Service。您現在可以掛線。