康寧 (GLW) 2016 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Corning Incorporated third-quarter 2016 earnings results conference call.

各位女士、先生，感謝您稍候。歡迎參加康寧公司（Corning Incorporated）2016 年第三季財報結果電話會議。

(Operator Instructions)

（接線員指示）

As a reminder this conference is being recorded. I would now like to turn the conference over to your host, Division Vice President of Investor Relations, Ann Nicholson. Please go ahead.

提醒各位，本次會議將被錄音。現在我想把會議交給今天的主持人——投資人關係部門副總裁 Ann Nicholson。請開始。

Thank you, Greg, and good morning everyone. Welcome to Corning's third-quarter 2016 conference call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Senior Vice President and Chief Financial Officer; and Jeffrey Evenson, Senior Vice President and Chief Strategy Officer.

謝謝你，Greg，各位早安。歡迎參加康寧 2016 年第三季電話會議。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 Jeffrey Evenson。

Before we begin our formal comments I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities and 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 and 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 be discussing our results using core performance measures unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by Management to analyze the business. A reconciliation of core results for the comparable GAAP value can be found on the Investor Relations section of our website at Corning.com.

另外請注意，除非我們特別指出評論與 GAAP 數據相關，否則我們將以核心績效衡量指標（core performance measures）來討論結果。我們的核心績效衡量指標為非 GAAP 指標，管理團隊用以分析業務。核心結果與可比 GAAP 數值的調節表，可在 Corning.com 網站的投資人關係（Investor Relations）專區查閱。

We have slides posting live on our webcast to go with our formal comments and they will be available on our website later this morning. Now I'll turn the call over to Wendell.

我們的網路直播（webcast）上會同步展示投影片，以配合正式發言內容，並將於今天上午稍晚在我們的網站上提供。現在把電話交給 Wendell。

Thank you, Ann. Good morning everyone. As you saw in this morning's press release we had a great third quarter.

謝謝你，Ann。各位早安。如同各位在今天早上的新聞稿中所看到的，我們第三季表現非常出色。

Sales and gross margins increased in every business segment year-over-year. We also grew the Company's sales, net income, and EPS both sequentially and year-over-year. Core EPS was $0.42 up 14% sequentially and 24% year-over-year.

各事業部門的銷售額與毛利率皆較去年同期成長。我們的公司銷售額、淨利與每股盈餘（EPS）也在季比與年比上雙雙成長。核心 EPS 為 0.42 美元，季增 14%，年增 24%。

On earlier calls we told you that we expected our momentum to build steadily throughout 2016 -- and it has. For the fourth quarter we expect again to see year-over-year growth in sales, net income, and EPS. Our operating results and our progress on key growth initiatives continue to reinforce our confidence in Corning's strategy.

在先前的電話會議中，我們曾表示預期 2016 年的動能將穩步增強——而事實確實如此。對於第四季，我們預期銷售額、淨利與 EPS 仍將呈現年增。我們的營運成果以及在關鍵成長計畫上的進展，持續強化我們對康寧策略的信心。

On our earnings call one year ago we introduced our strategy and capital allocation framework. We designed the framework to create significant value for shareholders by focusing our portfolio and leveraging our financial strength. The framework includes a commitment to delivering at least $12.5 billion to shareholders while investing $10 billion in growth opportunities through 2019.

在一年前的財報電話會議上，我們介紹了公司的策略與資本配置架構。我們設計此架構，透過聚焦投資組合並運用財務實力，為股東創造顯著價值。該架構包含一項承諾：在 2019 年前，在投資 100 億美元於成長機會的同時，至少回饋 125 億美元給股東。

As a reminder we focus 80% of our portfolio on three core technologies, four manufacturing, and engineering platforms and five market access platforms. We believe that this focus reduces the cost of innovation, increases our likelihood of success, and attracts some of the world's leading companies to our ecosystem because they see how our unique expertise can help address some of their toughest challenges.

提醒各位，我們將投資組合的 80% 聚焦於三項核心技術、四個製造與工程平台，以及五個市場切入平台。我們相信，這樣的聚焦能降低創新成本、提高成功機率，並吸引全球領先企業加入我們的生態系，因為他們看見我們獨特的專業能力可協助解決其最棘手的挑戰。

We are very pleased with the progress on our framework. Since its introduction a year ago, we have gained traction with our customers on our growth initiatives, realigned our interest in Dow Corning and are on track to distribute $6 billion to shareholders by the end of 2016. Achievements on the framework this quarter include the launch of the $2 billion accelerated share repurchase which we expect to conclude in the fourth quarter, significant new product introductions and progress on several of our new growth initiatives.

我們對此架構的進展感到非常滿意。自一年前推出以來，我們在成長計畫上已獲得客戶的實質進展，重新調整了我們在 Dow Corning 的權益，並正按計畫在 2016 年底前向股東分配 60 億美元。本季在該架構上的成果包括：啟動 20 億美元的加速庫藏股回購（accelerated share repurchase），預計於第四季完成；多項重要新產品上市；以及多個新成長計畫的推進。

Let's look at a few examples. In our mobile consumer electronics market access platform our goal is to double sales despite the maturing of the IT and handheld markets. We do this primarily by introducing products that advance the state of the art.

我們來看幾個例子。在行動消費性電子產品市場切入平台中，我們的目標是在 IT 與手持裝置市場逐漸成熟的情況下，仍能將銷售額翻倍。我們主要透過推出推進技術前沿的產品來達成。

This allows us to capture a price premium and to win in new places like wearables and phone backs. We introduced two of these innovative products during the third quarter. Gorilla Glass 5 and Gorilla Glass SR+.

這使我們能取得溢價，並在穿戴式裝置與手機背蓋等新領域勝出。我們在第三季推出了其中兩項創新產品：Gorilla Glass 5 與 Gorilla Glass SR+。

Gorilla Glass 5 has up to 1.8 times better damage resistance than Gorilla Glass 4 and delivers up to four times improvement in drop height to failure versus competitive glass designs. We are seeing superior drop performance translate into a meaningful price premium versus Gorilla Glass 4 and the opportunity to expand the use of Gorilla. Given the drop performance is the number one want from consumers is not surprising the attraction at our customers has been strong.

Gorilla Glass 5 的抗損能力最高可達 Gorilla Glass 4 的 1.8 倍，且相較於競爭對手的玻璃設計，其跌落至失效的高度表現最高可提升 4 倍。我們看到更優異的跌落表現，正轉化為相較 Gorilla Glass 4 具有實質意義的價格溢價，並帶來擴大 Gorilla 應用的機會。由於跌落表現是消費者最重視的需求之一，因此客戶端的吸引力強勁並不令人意外。

We are very pleased with the rate of adoption in just three months. Next Gorilla Glass SR+ delivers an unparalleled combination of toughness, scratch resistance, and optical clarity for today's wearable devices. You'll find SR+ on the Samsung Gear 3 later this year.

我們對於短短三個月內的採用速度感到非常滿意。接著，Gorilla Glass SR+ 為當今穿戴式裝置提供前所未有的韌性、耐刮性與光學清晰度的組合。今年稍晚，您將在 Samsung Gear 3 上看到 SR+。

In our automotive market access platform we seek to build a gorilla sized automotive glass business and also to create a significant new business around gas particulate filters. Let's start with the automotive glass opportunity, where our excitement continues to grow. Previously we focused most of our commentary on the advantages of Gorilla Glass for car windows.

在汽車市場切入平台方面，我們希望打造一個「Gorilla 規模」的汽車玻璃業務，同時圍繞汽油顆粒過濾器（gas particulate filters）建立一項重要的新業務。先從汽車玻璃機會談起，我們的興奮感持續升高。過去我們的評論多聚焦於 Gorilla Glass 用於車窗的優勢。

But designers of connected and autonomous vehicles are likely to dramatically increase the use of glass and touch screens in auto interiors. Gorilla Glass provides a unique path to deliver curve designs cost-effectively and creates a great new opportunity for us. Examples were featured recently at the Paris Auto Show.

但連網與自動駕駛車輛的設計師，很可能會大幅增加車內玻璃與觸控螢幕的使用。Gorilla Glass 提供一條獨特途徑，能以具成本效益的方式實現曲面設計，並為我們創造一個極佳的新機會。近期在巴黎車展上就展示了相關例子。

Inside the Renault Trezor Concept Car and also at the Faurecia booth in a curved full glass center console called Smart Pebbles. Both OEMs promoted their use of quote -- ultra tough Corning Gorilla Glass -- end quote and received significant media coverage. A reporter commented that the Trezor's dashboard is a big curved OLED display made from Gorilla Glass that controls most car functions and possesses a design DNA that will be passed on to the French automakers future models.

例如在 Renault Trezor 概念車內，以及在 Faurecia 展位上，一款名為 Smart Pebbles 的曲面全玻璃中控台。兩家 OEM 都宣傳其使用了引述——「超強韌的 Corning Gorilla Glass」——結束引述，並獲得大量媒體報導。有記者評論，Trezor 的儀表板是一個由 Gorilla Glass 製成的大型曲面 OLED 顯示器，可控制多數車輛功能，並具備將傳承至這家法國車廠未來車款的設計 DNA。

Moving to gas particulate filters or GPFs. You've seen major car manufacturers announce that they will equip vehicles with GPFs to meet the Euro 6 regulation. We won the majority of platforms awarded to date and we expect sales to begin ramping in 2017.

接著談汽油顆粒過濾器（GPF）。您已看到主要車廠宣布，將為車輛配備 GPF 以符合 Euro 6 法規。我們在迄今已授予的平台中贏得了多數，並預期銷售將於 2017 年開始放量。

As a reminder, no GPFs are used in commercially available vehicles today. Consistent with OEM announcements we believe that GPFs will be required to control particulate omissions from gasoline direct injection engines. GDI engines offer both higher performance and better fuel economy and as a result have grown to about a quarter of passenger car sales worldwide with units growing in the high teens annually.

提醒各位，目前市售車輛尚未使用任何 GPF。根據 OEM 的公告，我們相信 GPF 將成為控制汽油直噴（gasoline direct injection，GDI）引擎顆粒排放所必需的技術。GDI 引擎同時提供更高性能與更佳燃油經濟性，因此其占全球乘用車銷售約四分之一，且銷量每年以十幾%的高成長率增加。

We expect gas particulate filters to become a significant business for Corning. They offer the potential to increase our sales opportunity per vehicle by a factor of three to four with profitability similar to our current business. Today sales of GPFs are insignificant.

我們預期 GPF 將成為康寧的一項重要業務。其潛力在於：每輛車可帶來的銷售機會可提升至目前的 3 到 4 倍，且獲利能力與我們現有業務相近。目前 GPF 的銷售仍微不足道。

However, in line with our commitment to invest $10 billion in growth opportunities our investment on GPF is ramping in tandem with customer commitments. So you will see both cost on our P& L and capital expenditures in the near-term as we seek to build another significant business within our automotive market access platform.

然而，依據我們承諾投資 100 億美元於成長機會的方針，我們對 GPF 的投資正隨著客戶承諾同步加速。因此，當我們致力於在汽車市場切入平台中再打造一項重要業務時，您將在短期內看到損益表（P&L）上的成本以及資本支出（capital expenditures）的增加。

In our Optical Communications market access platform our goal is to grow at least twice as fast as telecom industry CapEx. We plan to do this by focusing on high-growth segments and by delivering integrated solutions that offer new levels of performance and reduce our customers' cost. Optical Communications is now a fully evolved example of our focused 3-4-5 portfolio.

在光學通訊市場切入平台方面，我們的目標是成長速度至少為電信產業資本支出（CapEx）的兩倍。我們計畫透過聚焦高成長區隔，並提供整合式解決方案，以帶來新的性能水準並降低客戶成本來達成。光學通訊如今已是我們聚焦的 3-4-5 投資組合的完整成熟範例。

We began more than 40 years ago by leveraging our deep knowledge of optical physics, glass science and vapor deposition to disrupt the telecommunications industry with optical fiber. Over time we increased our value-add by leveraging ceramics, extrusion and precision forming. We are now working with customers on glass motherboards based on our fusion platform.

40 多年前，我們運用在光學物理、玻璃科學與氣相沉積（vapor deposition）方面的深厚知識，以光纖顛覆電信產業。隨著時間推進，我們透過陶瓷、擠出（extrusion）與精密成形提升附加價值。我們目前正與客戶合作，開發基於我們 fusion 平台的玻璃主機板（glass motherboards）。

Today we are reaping the benefits of this unique combination of capabilities and segments like fiber to the home and hyperscale data centers. We are also seeing the benefits of our approach in the wireless arena. For example, in August the Atlanta Falcons Chief Technology Officer announced that Atlanta's new Mercedes-Benz Stadium will use the Corning ONE platform as a single optical network core that integrates Wi-Fi, cellular, and video.

如今，我們正收穫這種獨特能力組合所帶來的成果，以及光纖到府（fiber to the home）與超大規模資料中心（hyperscale data centers）等區隔的成長紅利。我們也在無線領域看到此方法的效益。例如，8 月時亞特蘭大獵鷹隊（Atlanta Falcons）的技術長宣布，亞特蘭大新的 Mercedes-Benz Stadium 將使用 Corning ONE 平台作為單一光學網路核心，整合 Wi‑Fi、行動通訊與影像。

We will be providing 4,000 miles of optical cable and 1,400 Wi-Fi access points. So it gets me excited about wins like this is not the size which is, it's certainly impressive, but instead it's that the skill sets underlying the Corning ONE platform are directly applicable to the emerging opportunities and 5G wireless and more to come on innovations in this space.

我們將提供 4,000 英里的光纜以及 1,400 個 Wi‑Fi 存取點。因此，讓我對這類勝利感到興奮的原因，不在於規模——雖然確實令人印象深刻——而在於支撐 Corning ONE 平台的技能組合，可直接應用於新興機會與 5G 無線領域；未來在此領域的創新也將陸續推出。

In summary under the strategy and capital allocation framework we are utilizing our financial strength both to return capital to shareholders and also to invest in growth through research and development capital expansion in M&A. Since we introduced the framework a year ago we have returned a total of $5.6 billion to shareholders in dividends and buybacks, reducing outstanding shares by about 18% and increasing the dividend by 12.5%. We believe that our investments will allow us to deliver secular growth over the long-term while consistently returning significant sums to our shareholders.

總結而言，在策略與資本配置架構下，我們運用自身的財務實力，一方面向股東返還資本，另一方面也透過研發、資本擴張以及併購投資於成長。自我們於一年前導入該架構以來，我們已透過股利與庫藏股回購合計向股東返還56億美元，使流通在外股數約減少18%，並將股利提高12.5%。我們相信，這些投資將使我們能在長期提供結構性成長，同時持續向股東返還可觀資金。

Tony will now provide a more detailed review of our third-quarter results and fourth-quarter outlook. Tony.

接下來 Tony 將更詳細回顧我們第三季的業績以及第四季展望。Tony。

Thank you, Wendell, and good morning. As we noted in today's press release our Q3 core results reflected the sequential and year-over-year improvement we expected.

謝謝你，Wendell，各位早安。如同我們在今日新聞稿中所提到的，我們第三季核心業績反映了我們預期的季比與年比改善。

We were very pleased with our strong operating performance. Sales in gross margins were up in every segment year-over-year and our net income and earnings per share were up significantly. Looking ahead, we see year-over-year sales, net income and EPS growth in the fourth quarter.

我們對強勁的營運表現感到非常滿意。各事業部門的銷售與毛利率皆較去年同期成長，我們的淨利與每股盈餘也大幅上升。展望未來，我們預期第四季的銷售、淨利與每股盈餘將較去年同期成長。

Before I get into the details of our core performance and outlook I wanted to briefly note that the primary difference between our GAAP and core results for the third quarter is again a non-cash mark-to-market loss. As we have discussed previously GAAP accounting requires earning translation hedge contracts settling in future periods to be mark-to-market and recorded at their current value in the current quarter even though those contracts will not settle in the current quarter. Consequently in this quarter we marked our contracts to market again as required by GAAP resulting in a GAAP loss of $150 million.

在我進入核心表現與展望的細節之前，我想先簡要說明：第三季 GAAP 與核心業績之間的主要差異，仍是一項非現金的按市價評價（mark-to-market）損失。如同先前所討論，GAAP 會計要求對未來期間到期結算的盈餘換算避險合約進行按市價評價，並在當季以其當期價值入帳，即使這些合約並不會在當季結算。因此，本季我們依 GAAP 規定再次將合約按市價評價，導致 GAAP 損失1.5億美元。

The loss in this quarter was significantly smaller than we saw in the first two quarters of the year because the yen exchange rates moved less. And to be clear this mark-to-market accounting has no impact on our cash flow. We remain very pleased with the results of our hedging program and the economic certainty it delivers.

本季的損失明顯小於今年前兩季，因為日圓匯率波動較小。需要明確的是，這項按市價評價會計處理對我們的現金流沒有影響。我們仍對避險計畫的成果以及其所帶來的經濟確定性感到非常滿意。

Since the inception of this strategy we have received cash totaling $1.2 billion under hedged contracts. These proceeds offset much of the currency related decline in displaced earnings due specifically to the weaker yen. At present we have hedged approximately 70% of our projected yen exposure through 2022 at a blended rate of approximately JPY106 per dollar.

自此策略啟動以來，我們已從避險合約中收到合計12億美元的現金。這些款項抵銷了因日圓走弱而造成的換算後盈餘下滑之相當部分。目前，我們已將截至2022年的預估日圓曝險約70%進行避險，綜合匯率約為每美元106日圓（JPY106）。

For investors who are concerned that a weakening yen would negatively impact our business, hedging earnings and cash flow through 2022 substantially mitigates that concern. Now for investors who have additional questions please refer to the more extensive discussion in our first- and second-quarter conference call or the tutorial on FX hedge accounting on the digital media disclosure section of our Investor Relations website. And as always, Ann and her team are available after the call.

對於擔心日圓走弱會對我們業務造成負面影響的投資人而言，將盈餘與現金流避險至2022年可大幅降低此疑慮。若投資人仍有其他問題，請參考我們第一季與第二季法說會中更完整的討論，或至我們投資人關係網站「數位媒體揭露」專區的外匯避險會計教學內容。一如往常，Ann 與其團隊會在會後提供協助。

Now let's turn to the results for the third quarter. As a reminder these are core performance metrics. Sales in the quarter were $2.55 billion up 4% versus last year and exceeding our expectations.

現在讓我們來看第三季的業績。提醒各位，以下皆為核心績效指標。本季銷售額為25.5億美元，較去年成長4%，並超出我們的預期。

The growth was driven largely by strong performance in Optical Communications. Corporate gross margin was 43% on track with guidance and well ahead of last year. The year-over-year improvement largely reflected improved profitability in Optical Communications and good cost performance in display.

成長主要由光學通訊（Optical Communications）的強勁表現所帶動。公司整體毛利率為43%，符合指引並明顯優於去年。年比改善主要反映光學通訊獲利能力提升，以及顯示事業良好的成本表現。

SG&A was 13% of sales at $328 million. RD&E costs were 7% of sales at $187 million. Total gross equity earnings were $19 million, recall we closed on the realignment of Dow Corning on May 31 so third-quarter equity earnings predominantly reflect our equity earnings from Hemlock.

銷售、一般及行政費用（SG&A）為3.28億美元，占銷售額13%。研發與工程（RD&E）費用為1.87億美元，占銷售額7%。權益法投資收益總額為1,900萬美元；回顧一下，我們於5月31日完成 Dow Corning 的重整，因此第三季的權益法收益主要反映我們自 Hemlock 的權益法收益。

Our effective tax rate for the quarter was 15%. Net income was $466 million up 7% sequentially and 4% from last year's third quarter. Adjusting for the former Dow Corning silicone's business equity earnings which no longer contribute to our results, net income grew 16% on the 4% sales growth.

本季有效稅率為15%。淨利為4.66億美元，季增7%，較去年第三季成長4%。若調整不再納入我們業績的前 Dow Corning 矽利康（silicones）事業之權益法收益，在銷售成長4%的情況下，淨利成長16%。

This reflects our strong underlying financial performance. EPS was $0.42 up 24% versus last year and above expectations. Now let's turn to our balance sheet and cash flow.

這反映了我們強勁的基本面財務表現。每股盈餘（EPS）為0.42美元，較去年成長24%，並高於預期。接下來我們看資產負債表與現金流。

We ended the quarter with $4.8 billion of cash. During the quarter we repurchased $2.4 billion worth of common shares outstanding and adjusted operating cash flow for the quarter was $721 million up significantly over Q1 and Q2 as expected and driven primarily by higher core net income. Now consistent with history we expect Q4 operating cash flow to be up sequentially. We expect the increase to be driven primarily by a reduction in working capital and other cash receipts.

本季末我們持有現金48億美元。季內我們回購了24億美元的普通股。經調整後，本季營運現金流為7.21億美元，較第一季與第二季如預期大幅提升，主要由核心淨利增加所帶動。依照過往慣例，我們預期第四季營運現金流將季比增加；增幅主要來自營運資金下降以及其他現金收款。

Now let's look at the detailed segment results and the outlook for each business beginning with display technologies. Display had a very strong third-quarter exceeding our expectations. Looking ahead we continue to expect the 2016 glass market and our volume to be at mid-single digits for the full year.

現在我們來看各事業的詳細分部業績與展望，先從顯示技術（Display Technologies）開始。顯示事業第三季表現非常強勁，超出我們預期。展望未來，我們仍預期2016年玻璃市場及我們的出貨量全年將為中個位數成長。

As you would expect there are a few puts and takes at retail versus our expectations. But the biggest driver of the growth remains TV screen size which is tracking solidly to be more than 1.5 inches of year-over-year growth.

如各位所預期，零售端相較我們原先預期仍有一些正負因素拉鋸。但成長的最大驅動力仍是電視螢幕尺寸，目前追蹤顯示年比成長可望超過1.5吋。

In the third quarter the set makers pulled very hard for panels ahead of the Q4 peak retail season. Our customers, the panel makers, increased their utilizations to meet this demand which resulted in additional sequential growth for the glass market. The glass market was up high-single digit sequentially versus our expectations that the glass market would be up mid-single digits sequentially.

第三季，整機廠在第四季零售旺季前大幅拉貨面板。我們的客戶—面板廠—為滿足需求而提高稼動率，帶動玻璃市場額外的季比成長。玻璃市場季比成長達高個位數，優於我們原先預期的中個位數季比成長。

Our glass volume was up slightly more than the glass market due to customer mix. For the ninth consecutive quarter the decline in LCD glass pricing remained moderate and met the expectations we noted last quarter. These drivers produced the strong results for our display business in the third quarter with sales up 7% and net income up 14% sequentially.

由於客戶組合因素，我們的玻璃出貨量增幅略高於整體玻璃市場。連續第九個季度，LCD 玻璃價格下滑仍屬溫和，符合我們上季所提的預期。上述因素帶動顯示事業第三季強勁表現：銷售季增7%，淨利季增14%。

Forward-looking weeks of supply chain inventory remain at a healthy level and panel maker inventories remain lean. As I already said we expect the 2016 glass market and our volume will be up mid-single digits for the full year. In the fourth quarter we expect panel maker utilization to remain high and glass supply to remain tight.

前瞻性的供應鏈庫存週數仍維持在健康水準，面板廠庫存仍偏精實。如我先前所說，我們預期2016年玻璃市場及我們的出貨量全年將為中個位數成長。第四季我們預期面板廠稼動率將維持高檔，玻璃供給仍將吃緊。

So we could see Q4 glass volume consistent with Q3. But in light of the third quarter upside it only follows that our fourth-quarter volume may be down slightly. Therefore, while our overall guidance for the year remains unchanged our guidance for the fourth quarter glass volume is consistent to down slightly sequentially.

因此，我們可能會看到第四季玻璃出貨量與第三季相近。但考量第三季優於預期的上行表現，順理成章地，我們第四季出貨量可能會小幅下滑。因此，雖然我們對全年整體指引維持不變，但對第四季玻璃出貨量的指引為持平至小幅季減。

We will watch this closely as the quarter unfolds. In the fourth quarter we expect LCD glass prices to decline moderately and be more moderate than Q3. And we expect that the moderate pricing environment we've experienced over the last nine quarters will continue or even improve for two reasons.

我們將在季度進行中密切觀察。第四季我們預期 LCD 玻璃價格將溫和下滑，且下滑幅度將較第三季更為溫和。我們也預期過去九個季度所經歷的溫和定價環境將延續，甚至改善，原因有二。

First we monitor utilization in market demand and other market factors very closely and all of those indicate that glass supply should remain tight for the balance of the year and into 2017 especially in large [gen] sizes as a result of the strong TV demand. We will manage our operating capacity to our demand and maintain our stable share strategy.

第一，我們非常密切地監控稼動率、市場需求及其他市場因素；所有指標都顯示，玻璃供給在今年剩餘期間並延續至2017年應仍將偏緊，尤其是大尺寸[gen]世代規格，主要受強勁電視需求所帶動。我們將依需求管理營運產能，並維持我們穩定市占的策略。

And second our competitors profitability is low even though prices declines have been moderate for two years now their profitability has remained low during that period. Therefore we expect that their price declines will slow down 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.

第二，即使過去兩年價格下滑幅度一直相對溫和，我們競爭對手的獲利能力仍偏低，且在此期間一直維持低檔。因此我們預期，為了維持獲利，他們的降價幅度將進一步放緩。基於上述及其他原因，我們仍相信未來的季比定價走勢將對我們更有利。

Let's move to Optical Communications. Overall we are pleased with the growth in Optical Communications in the third quarter and expect strong growth again in Q4. Third quarter sales were $795 million up 6% versus last year, with fiber to the home very strong.

接著談光學通訊（Optical Communications）。整體而言，我們對第三季光學通訊的成長感到滿意，並預期第四季將再度強勁成長。第三季銷售額為7.95億美元，較去年成長6%，其中光纖到府（fiber to the home）表現非常強勁。

While our growth in Optical Communications was strong on an absolute basis, we missed our own guidance because growth in hyperscale data center projects was below expectations. Note that our sales for our large hyperscale data center range from $5 million to $10 million, so delay of a single project can reduce total segment growth by more than a percentage point. We remain well-positioned to capture secular long-term growth in the hyperscale segment.

雖然光學通訊的成長以絕對值來看相當強勁，但由於超大規模（hyperscale）資料中心專案的成長低於預期，我們未達成自身指引。請注意，我們單一大型 hyperscale 資料中心專案的銷售額約介於500萬至1,000萬美元，因此單一專案延遲就可能使該分部總成長率降低超過1個百分點。我們仍具備良好定位，可掌握 hyperscale 分項的長期結構性成長。

Net income at $98 million was up 38% over last year. Improved manufacturing costs and favorable shift toward sales of our solution products contributed to the higher year-over-year profitability. For the fourth quarter we expect sales to grow in the high single digits year-over-year led by continued fiber to the home strength.

淨利為9,800萬美元，較去年成長38%。製造成本改善，以及銷售組合朝向我們的解決方案產品（solution products）有利轉移，共同推升年比獲利能力。第四季我們預期銷售額年比將呈高個位數成長，主要由光纖到府的持續強勁所帶動。

We expect hyperscale sales to continue growing faster than overall Optical Communication segment but at a rate lower than we anticipated earlier in the year. In Environmental, Q3 sales were up 3% versus last year and slightly ahead of expectations. Sales of light duty substrates for auto were a record up 17% year-over-year driven by continued strong demand in North America, Europe and China and additional platform wins.

我們預期超大規模（hyperscale）銷售將持續以快於整體光學通訊事業部的速度成長，但成長率將低於我們年初先前的預期。在環境事業方面，第三季銷售較去年成長3%，且略高於預期。汽車用輕型載具基材銷售創新高，年增17%，主要受北美、歐洲與中國需求持續強勁，以及新增平台得標所帶動。

This strength was offset by continued weakness for heavy duty products in North America and China. Note we expect the market for heavy duty trucks in North America to be down 30% this year.

然而，北美與中國重型產品需求持續疲弱，抵銷了上述強勁表現。請注意，我們預期今年北美重型卡車市場將下滑30%。

Net income declined $3 million year-over-year in line with our expectations. For the fourth quarter we expect sales to be down low single-digits versus Q4 last year as weakness continues in the heavy duty truck markets.

淨利較去年同期減少300萬美元，符合我們的預期。第四季我們預期銷售將較去年第四季呈現低個位數下滑，因重型卡車市場疲弱仍將持續。

Let's move to Specialty Materials where both sales and net income were ahead of our expectations. Year-over-year Q3 sales increased 2% and net income was consistent. Compared to the second quarter Q3 sales grew 11% while net income was impacted by a ramp up cost associated with launch of new products and customer mix. With the majority of the launch spin behind us we expect fourth-quarter profitability to improve.

接著談特殊材料（Specialty Materials），其銷售與淨利皆優於我們的預期。第三季銷售年增2%，淨利大致持平。相較第二季，第三季銷售成長11%，但淨利受到新產品上市爬坡成本以及客戶組合影響。隨著大部分上市初期的影響已過，我們預期第四季獲利能力將改善。

Earlier Wendell noted that we introduced Gorilla Glass 5 and Gorilla Glass SR+ in the third quarter. Just last week Chinese OEM OPPO announced Gorilla Glass 5 on its R9S and R9S Plus smart phones and you can expect to see them on additional devices in the coming months. Volume growth of Gorilla Glass is expected to drive the high single-digit year-over-year sales growth we expect for the segment in the fourth quarter.

Wendell 先前提到，我們在第三季推出 Gorilla Glass 5 與 Gorilla Glass SR+。就在上週，中國 OEM 廠商 OPPO 宣布其 R9S 與 R9S Plus 智慧型手機採用 Gorilla Glass 5，未來幾個月您也可望在更多裝置上看到。Gorilla Glass 的出貨量成長，預期將帶動我們對該事業部第四季所預估的年增高個位數銷售成長。

In Life Sciences Q3 sales were $214 million and met our expectations for low single-digit growth. Net income was $21 million and we expect Q4 sales to be up low single digits versus last year. Now I'll cover additional items in our fourth-quarter outlook.

生命科學（Life Sciences）方面，第三季銷售為2.14億美元，符合我們對低個位數成長的預期。淨利為2,100萬美元；我們預期第四季銷售將較去年呈現低個位數成長。接下來我將說明第四季展望中的其他項目。

On a consolidated basis we expect our fourth-quarter gross margins to be consistent with Q3 at 43% which is up one percentage point from last year's fourth quarter. Our view reflects the higher sales we expect in Optical Communications and year-over-year cost reductions in display. SG&A and RD&E spending should be approximately 14% and 8% of sales respectively.

以合併基礎來看，我們預期第四季毛利率將與第三季一致，為43%，較去年第四季提高1個百分點。我們的看法反映了光學通訊預期較高的銷售，以及顯示器業務的年對年成本降低。SG&A 與 RD&E 支出分別應約占銷售額的14%與8%。

We expect other income other expense to be a net expense of approximately $40 million. We expect total gross equity earnings to be between $75 million and $85 million. This is higher than some analysts were modeling driven by higher sales from Hemlock's solar business as customers complete their annual contract commitments.

我們預期其他收入／其他費用將為約4,000萬美元的淨費用。我們預期權益法投資收益總額介於7,500萬至8,500萬美元之間。此數字高於部分分析師模型，主要因 Hemlock 的太陽能業務銷售較高，客戶正完成其年度合約承諾。

Versus last year Hemlock's contributions to our net income is expected to be up $10 million to $15 million. We expect our effective tax rate for 2016 to be approximately 15%. Let me close by saying that we are very pleased with the strong sequential and year-over-year growth in sales and earnings in the third quarter and we expect similarly strong year-over-year growth in the fourth quarter.

相較去年，Hemlock 對我們淨利的貢獻預期將增加1,000萬至1,500萬美元。我們預期2016年的有效稅率約為15%。最後我想說，我們對第三季銷售與獲利的強勁季增與年增感到非常滿意，並預期第四季也將呈現同樣強勁的年對年成長。

Other than Optical Communications all of our business has met or exceeded expectations. While we do not expect Optical Communications to grow quite as fast as our prior guidance for the back half of the year we are still delighted with high single-digit growth and believe that we remain well positioned to continue growing more than twice the rate of the overall telecom industry. Stepping back, our performance demonstrates the benefits of the strategy in capital allocation framework introduced last fall.

除光學通訊之外，我們所有業務皆達到或超越預期。雖然我們不預期光學通訊在下半年能如先前指引般快速成長，但我們仍對高個位數成長感到欣喜，並相信我們仍具備良好定位，可持續以超過整體電信產業兩倍的速度成長。從更宏觀的角度看，我們的表現展現了去年秋季提出的資本配置策略框架所帶來的效益。

Under that framework 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 and we will have returned $6 billion by year end. We are focusing our portfolio to increase our probability of success, reduce the comp of innovation and increase the barriers to entry for our competition and we have a rich set of growth opportunities. Overall we feel very good about where we are.

在該框架下，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領導地位。我們也計畫向股東分配超過125億美元，且至年底將已回饋60億美元。我們正聚焦投資組合，以提高成功機率、降低創新複雜度，並提高競爭對手的進入門檻，同時我們也擁有豐富的成長機會。整體而言，我們對目前的狀況感到非常良好。

With that let's move to Q&A. Ann?

接下來進入問答。Ann？

Thank you, Tony. Greg let's open the line for questions.

謝謝你，Tony。Greg，我們開始開放提問。

(Operator Instructions)

（接線員指示）

Vijay Bhagavath with Deutsche Bank.

德意志銀行的 Vijay Bhagavath。

Yes, hello.

是的，你好。

Hi, Vijay. You got the line open, buddy.

嗨，Vijay。你可以開始提問了，老兄。

Yes. I was on mute. My apologies. (Inaudible) here. My question honestly is on the optical business and on the hyper-scale cloud demand. Would like to get your clarity on how should we model and think about cloud customer demand heading into the next quarter and also into FY17? Thanks.

是的。我剛剛在靜音。抱歉。（聽不清）在這裡。我的問題坦白說是關於光學業務以及超大規模雲端需求。我想請你們釐清，我們應該如何建模並看待雲端客戶需求，無論是進入下一季，或是進入2017財年？謝謝。

So from an overall standpoint, obviously we were disappointed in the third quarter because it wasn't quite as strong as we had expected. We were still up on a year-over-year basis. And as we move into Q4 it's also not going to be quite as strong as we expected. Again it will be up year-over-year but it won't be quite as strong as we expected. So our guidance of being up high single digits reflects that.

就整體而言，很明顯我們對第三季感到失望，因為表現沒有我們預期那麼強。不過我們仍較去年同期成長。進入第四季，也不會如我們原先預期那麼強。同樣地，仍會年增，但不會如我們預期那麼強。因此我們給出的年增高個位數指引反映了這點。

And I think the way to think about it is, it's hard to call within a couple of percent because just a couple of these hyper-scale data centers move it from one quarter to the next or changing in their overall build plan can really move those percents around a lot.

我認為應該這樣看：要在幾個百分點內精準預測很困難，因為只要其中幾座超大規模資料中心在季度之間移動，或其整體建置計畫有所調整，就可能讓這些百分比大幅變動。

But over the sort of sweep of time, we feel good about our position there and if you are a believer as we are that there's going to be a lot more hyper-scale data centers built, then we are going to grow with that. Calling the exact timing of these construction projects is not the easiest thing to do as we have just demonstrated.

但從較長時間的趨勢來看，我們對自身在該領域的定位感到樂觀；如果你和我們一樣相信未來會建置更多超大規模資料中心，那麼我們將隨之成長。正如我們剛剛所示範的，要精準掌握這些建設專案的確切時點並不容易。

A quick follow on would be, could we still anticipate the cloud customers directionally to be kind of a key growth driver for the optical business or is it quite lumpy you don't know and we should kind of focus more on fiber to the home? Thanks.

我有個快速追問：我們是否仍可預期雲端客戶在方向上會是光學業務的主要成長動能，還是其波動很大、你們也不確定，因此我們應該更聚焦在光纖到府（fiber to the home）？謝謝。

I think that depends on what you like best, right? I think definitely this is an area that's going to be a key growth driver. Is it going to be uniform and smooth? No. But then again, fiber to the home also can have these project-related flows. So in general we look at both as being two megatrends that are going to drive demand for our product and also where our market access and our shares are quite strong. So I think both of those are worth paying attention to, Vijay.

我想這取決於你更偏好哪一個，對吧？我認為這個領域肯定會是關鍵成長動能。它會不會均勻、平滑地成長？不會。但同樣地，光纖到府也可能出現這種與專案相關的波動。整體而言，我們把兩者都視為將推動我們產品需求的兩大趨勢，而且我們在市場觸及與市占方面都相當強。因此我認為這兩者都值得關注，Vijay。

Thank you. Yes. Solid results overall.

謝謝。是的，整體結果很扎實。

Thank you.

謝謝。

Doug Clark from Goldman Sachs.

高盛的 Doug Clark。

Hi. Thanks for taking my question. First one is on the glass business. You mentioned in the prepared remarks tight glass supply in the fourth quarter but volume still being flat to down slightly. Does that set up for 2017 where we are in an environment where inventories are still fairly low and we could see further restocking?

嗨，謝謝讓我提問。第一個問題是關於玻璃業務。你們在事先準備的談話中提到第四季玻璃供應吃緊，但出貨量仍持平到略為下滑。這是否為2017年鋪路，也就是在庫存仍相對偏低的環境下，我們可能看到進一步補庫？

Yes, so I think as we look at inventories right now, we think that the value chain inventories are healthy. And set makers clearly are counting on a strong Q4 retail season and they have been pulling hard on the panel makers and we've seen that. We continue to see high glass supply and we think that's going to continue throughout the fourth quarter.

是的，所以我們目前看庫存時，認為價值鏈的庫存水位是健康的。整機廠顯然押注第四季零售旺季強勁，他們一直對面板廠施加拉貨壓力，我們也看到了。我們持續看到玻璃供應吃緊，並認為這種情況將延續整個第四季。

So if set makers are right about the retail season, we feel pretty good about how we enter into next year. And right now we are right at the beginning of that retail season, so it's always the hardest time to know and be able to predict but we are all paying very close attention to that.

因此，如果整機廠對零售旺季的判斷正確，我們對進入明年的狀況感到相當樂觀。而目前我們正處於零售旺季的起點，這通常是最難判斷與預測的時點，但我們都在非常密切地關注。

Okay. That makes sense. On pricing as well, I think you talked about an additional moderation in pricing in the fourth quarter. We've gotten the question I'm just kind of curious in your opinions on this, has the FX environment in any way impacted your discussions over pricing particularly to the beginning of the year? And then second question and slightly unrelated but in the Gorilla Glass business any impact from the Note 7 recall knowing that was a Gorilla Glass 5 product?

好的，這很合理。也關於定價，我想你們談到第四季定價將進一步趨緩。我們收到這個問題，所以我想了解你們的看法：匯率環境是否在任何程度上影響你們的定價討論，特別是相較年初？第二個問題稍微不相關，但在 Gorilla Glass 業務方面，Note 7 召回是否有任何影響，考量到那是 Gorilla Glass 5 的產品？

Sure. Let me start with the answer from a yen standpoint. Clearly the yen from a customer standpoint does have an impact, and of course customers always ask for lower prices when we're having discussions with them, but I think when you think about it from an overall standpoint the yen fluctuations can be pretty temporary. And we've seen now two quarters where the yen has been stronger and prices have been moderate, so we don't think it has a big impact.

當然。我先從日圓的角度回答。很明顯，從客戶角度來看，日圓確實會帶來影響；當然客戶在與我們討論時總是會要求更低的價格。但從整體角度來看，日圓波動可能相當短暫。我們已經看到日圓走強、價格趨緩連續兩個季度，因此我們不認為它有很大的影響。

In terms of from a Note 7 standpoint, of course you never want to see a customer have an issue like that, but from an overall standpoint we sell into the Note 7 into the premium handheld market and just depends on what people who are going to buy that buy instead. And as long as they buy a premium phone, of course we have very high share on the premium phones, and of course the Note 7 even though it was a premium part of Samsung's devices it's not the biggest handheld that they sell. So from an overall standpoint we don't see a really big impact there.

就 Note 7 而言，當然我們絕不希望看到客戶遇到那樣的問題；但從整體角度來看，我們是把 Note 7 供應到高階手持裝置市場，而影響取決於原本要買 Note 7 的人改買什麼。只要他們改買的是高階手機，當然我們在高階手機上的市占率非常高；而且 Note 7 雖然是三星裝置中的高階產品，但並不是他們銷量最大的手持裝置。所以從整體來看，我們不認為會有很大的影響。

Joseph Wolf from Barclays.

巴克萊的 Joseph Wolf。

Thank you. I wanted to follow up on the optical side. First just quick housekeeping. Were the issues from earlier in the year completely resolved at this point? And then as a follow-up, is there any distinction between what we would call the public cloud and the private cloud as you think about either lumpiness opportunity or the direction or timing of spend right now? And if bandwidth is still growing, are we just looking at timing issues in optical?

謝謝。我想追問一下光學（optical）方面。先快速確認一下：今年稍早的那些問題到目前為止是否已經完全解決？另外追問，當你們在思考目前支出方向或時點、以及機會是否會有波動性（lumpiness）時，所謂公有雲與私有雲之間是否有任何區別？如果頻寬仍在成長，那我們在光學這邊看到的是否只是時點問題？

Yes. I think the fundamental answer is yes. We are just looking at timing issues in optical. In terms of the computer issues that we had at the beginning of the year, we clearly got back to full production at the end of the second quarter. There's still some backlog that we are working through, but from a production standpoint, we are running full out in that business just as we said we were going to.

是的。我想根本的答案是：是的。我們在光學上看到的只是時點問題。至於年初我們遇到的那些製造問題，我們很清楚在第二季末已經恢復到滿載生產。現在仍有一些積壓訂單正在消化，但就產能/生產而言，我們在那個業務上正如我們所說的那樣全速運轉。

The short answer, Joseph, to both your questions is, yes.

Joseph，你兩個問題的簡短答案都是：是的。

And is there any difference between public and private cloud appetite to spend right now?

那麼目前公有雲與私有雲在支出意願上有任何差異嗎？

You know it's so hard to tell the difference because some of the public cloud players are also big private cloud players. So as an equipment manufacturer into it I don't know that we are the best ones to ask. We can't tell which -- what you are using our fiber and connective for or whether you are doing public or your own private cloud.

你知道，這真的很難分辨，因為有些公有雲業者同時也是大型私有雲業者。所以以我們這種設備供應商的角度來看，我不確定我們是不是最適合回答這個問題的人。我們也無法判斷你們使用我們的光纖與連接產品是用在什麼用途，或是你們是在做公有雲還是自建私有雲。

Okay. Fair enough. Just one last follow-up. You mentioned 5G in the Corning ONE platform. Are cable vendors at all already looking at that for widespread Wi-Fi coverage outside of stadiums? Is that an opportunity that connects up to the fiber to the home story?

了解。也合理。最後再追問一個：你提到 Corning ONE 平台中的 5G。線纜（cable）業者是否已經在評估把它用於體育場館以外的廣泛 Wi‑Fi 覆蓋？這是否是一個能與「光纖到府」（fiber to the home）的故事連結起來的機會？

Now are you asking about ONE or are you asking about 5G or are you asking about medium power wireless?

你現在問的是 ONE，還是問 5G，還是問中功率無線（medium power wireless）？

I am asking -- I guess on the way to 5G when you look at some of the cable vendors looking for ubiquitous Wi-Fi is this a product that also can sell into that?

我問的是——我想是在通往 5G 的過程中，當你看到一些線纜業者想要無所不在的 Wi‑Fi 覆蓋時，這是否也是一個可以銷售到那個需求的產品？

So far where we've been focusing ONE, you are asking an excellent question, is in those areas where you want very intense and high-bandwidth and low latency applications, so that tends to be where you bring an awful lot of users together in one area. So that's been the focus of our development because we think if you look longer term in wireless and longer term at things like 5G, the critical thing to drive new applications will be that combination of high-bandwidth and low latency.

到目前為止，我們在 ONE 上的聚焦——你問得非常好——是在那些需要非常密集、高頻寬、低延遲應用的場景，因此通常是把大量使用者聚集在同一個區域的地方。這一直是我們研發的重點，因為我們認為，若從更長期的無線趨勢、以及像 5G 這類技術來看，推動新應用的關鍵將是高頻寬與低延遲的組合。

Those are the apps that get exciting and that's what shaped our efforts in wireless to not be a me too player, but instead set a platform that would have real legs over time. So you're right, ultimately you can see this type of approach spreading because it's the same conceptual framework for what you have to do to get low latency high-bandwidth systems. Whether or not cable TV will be a strong adopter here or not, I'm not so sure that I would know the answer to that.

那些才是令人興奮的應用，也正是這點塑造了我們在無線領域的努力方向：不是做一個「我也有」的跟隨者，而是建立一個能在時間推移下真正站得住腳的平台。所以你說得對，最終你可以看到這種方法擴散開來，因為要打造低延遲、高頻寬系統，其概念框架是相同的。至於有線電視業者是否會在這裡成為強力採用者，我不太確定我是否知道答案。

Okay. Thank you.

好的。謝謝。

Rod Hall from JPMorgan.

摩根大通的 Rod Hall。

Good morning, guys. Thanks for the question. I wanted to start with specialty again the guidance is about 6% below what we were expecting and I think if I remember right your guidance was weak last quarter as well. I wanted to get a feeling for whether that is a demand expectation, just overall market demand that's weak, or is there something going on with lower content? Can you just give me a little bit more color on what's going on with specialty when the guidance is a little bit weak?

各位早安。謝謝讓我提問。我想先從特種材料（specialty）再談起：你們的指引大約比我們預期低 6%，而且如果我沒記錯，你們上季的指引也偏弱。我想了解這是需求預期的問題——也就是整體市場需求偏弱——還是因為單機含量（content）降低之類的因素？能否多提供一些背景，說明為什麼特種材料的指引看起來有點偏弱？

And I also wanted to come back to display. I think, Tony, your comments suggested that you guys are maybe being pretty cautious on guidance there. It sounds like demand was pretty good in Q3 but you're still guiding for a little bit weaker than expected Q4. So I just wonder are you guys less confident on demand in the retail or retailers of the panel makers, or just give me a little bit more color on what you're thinking on display. I guess overall I'm trying to get some understanding on what you guys are thinking about end market consumer demand. Thanks.

我也想回到顯示器（display）。Tony，我覺得你的評論暗示你們在那邊的指引可能相當保守。聽起來第三季需求很好，但你們對第四季的指引仍比預期弱一些。所以我想問：你們是對零售端需求比較沒信心，還是對面板廠/其客戶比較沒信心？能否多談談你們對顯示器的看法？整體而言，我想更理解你們對終端市場消費需求的判斷。謝謝。

Okay let's start with display and then we'll go to specialty. In display I think, Rod, you've read us pretty well. In that if we were to believe what our customers are saying and what the set makers seem to be preparing for, then our guidance may be a little conservative. At the same time, we have a view of the full-year demand for glass that hasn't changed. So more glass was bought in quarter three than what we expected, so therefore, arithmetic tells us that we ought to have a little bit lower in quarter four.

好，我們先談顯示器，再談特種材料。顯示器方面，Rod，我想你對我們的解讀很到位。如果我們相信客戶所說的、以及整機廠似乎正在做的準備，那我們的指引可能確實偏保守。同時，我們對全年玻璃需求的看法並沒有改變。第三季購買的玻璃量高於我們原先預期，因此從算術上來看，第四季就應該會低一些。

Which of these things ends up being right I think is hard to tell, and that's why you hear our guidance of the sort of flat to down some. If the set makers are right, you'd expect the very strong performance we've seen in quarter three to carry forward beautifully into quarter four. If we are right that the total glass market is what it is we think it is, then arithmetically there needs to be a correction. Whether it's in quarter four this year, quarter one of next. That's hard for us to tell. So I think you read us pretty well. Does that answer that question, Rod?

最後哪一個會是對的，我覺得很難判斷，這也是你會聽到我們給出「大致持平到小幅下滑」這種指引的原因。如果整機廠是對的，你會期待我們在第三季看到的非常強勁表現能漂亮地延續到第四季。如果我們對總體玻璃市場規模的判斷是對的，那從算術上就需要出現修正。至於修正會發生在今年第四季，還是明年第一季，我們也很難判斷。所以我想你確實把我們讀得很準。這樣有回答你的問題嗎，Rod？

Yes, that's helpful, Wendell. Thank you.

有的，這很有幫助，Wendell。謝謝。

On specialty, we're expecting sort of high single-digit growth in quarter four, and that's pretty much in line with what it is we were thinking about. You could make a case for higher as you may have and you can make a case for lower, but I don't see anything systemically going on, net our sort of momentum has been building.

特種材料方面，我們預期第四季會有大約高個位數的成長，這基本上與我們原先的想法一致。你可以像你那樣提出更高的情境，也可以提出更低的情境，但我沒有看到任何系統性（systemic）的問題；整體而言，我們的動能一直在累積。

Tony answered the Note 7 question with basically it's too early to tell for sure. You could make a case, as I think you may even have, Rod, of how much glass is used on one device versus another, and that's all solid logic, Rod. It's just there's just so much stuff that goes on in that supply chain, even though your logic is really sound, it's hard for us to draw a direct line once we start trying to guess what a consumer of a phone buys next but your logic is sound.

Tony 對 Note 7 的問題基本上回答說：現在要確定還太早。你可以提出一個論點——我想你可能也有這樣想，Rod——比較不同裝置使用的玻璃量有多少差異；那套邏輯是成立的，Rod。只是供應鏈裡會發生太多事情，即使你的邏輯非常扎實，一旦我們開始猜測消費者下一支手機會買什麼，就很難畫出一條直接的因果線；但你的邏輯是對的。

Wendell, can I just get you to -- what do you think about just broader end market demand in smart phones? Do you think that it's a little bit weaker than you would've anticipated or sort of in line with what you think? I just was just curious what you think.

Wendell，我想再請教你——你怎麼看智慧型手機更廣泛的終端市場需求？你覺得它是否比你原先預期的稍弱，還是大致符合你的看法？我只是好奇你的判斷。

I think it was when you asked me when, right? So I think overall, if you'd asked me at the beginning of the year, I probably would've been a little more bullish on demand, and now we pretty much look at this market over time as being pretty darn mature, right?

我想你是在問「何時」對吧？所以我認為整體而言，如果你在年初問我，我可能會對需求更樂觀一些；而現在我們基本上把這個市場視為相當成熟的市場，對吧？

So the secret for us to double our revenues here has got to be innovation to drive up our price point and make it possible to use the glass in new ways on the phone. So we can double the amount of glass usage on a phone because we've improved drop so much. That can allow us to keep growing our revenues despite what we see is a pretty mature mobile market. Does that answer your question, Rod?

所以對我們來說，要在這裡把營收翻倍的關鍵，必須靠創新來拉高我們的單價（price point），並讓玻璃能以新的方式用在手機上。因為我們把抗摔能力提升了很多，所以我們可以把一支手機上的玻璃用量加倍。即便我們看到行動市場已相當成熟，這也能讓我們的營收持續成長。這樣有回答你的問題嗎，Rod？

Yes. It does. Thank you very much, Wendell. Thanks, guys.

有的。非常感謝你，Wendell。謝謝各位。

Patrick Newton from Stifel.

Stifel 的 Patrick Newton。

Good morning, Wendell and Tony. Thank you for taking my questions. I wanted to switch gears and talk a little bit about automotive. You had some commentary around autonomous vehicles driving interior demand in your prepared remarks. I am curious if this is a shift away from a focus on Windows 2 interiors or is this purely additive to the story? And then from a targeted time frame of the $1 billion in automotive by 2020, is that still the right revenue level and the right time frame?

早安，Wendell 和 Tony。感謝讓我提問。我想換個話題，稍微談一下汽車領域。你在事先準備的發言中提到，自動駕駛車將帶動車內需求。我想了解，這是否代表你們不再以 Windows 2 車內方案為重點，還是這只是對既有故事的額外加成？另外，關於到 2020 年汽車業務達到 10 億美元的目標時程，這個營收水準與時間框架仍然正確嗎？

I'll do the first one and I'll let Tony do the second one (laughter). If Tony's foolish enough to predict revenues in a brand-new innovation, we will let him do that as CFO. So it is truly additive. When we launched our first automotive work a number of years ago and as friends of ours pulled us in to try to disrupt the automotive industry.

第一個我先回答，第二個我讓 Tony 來回答（笑）。如果 Tony 夠傻，願意在一個全新創新領域去預測營收，那就讓他以 CFO 的身分來做。所以這確實是加成。幾年前我們啟動第一個汽車相關專案時，是一些朋友把我們拉進來，想要嘗試顛覆汽車產業。

Really it was both aspects. Both the exterior glazing as well as car interiors. And all you are seeing now is a lot of excitement is getting built up around the interiors and that you're just hearing a lot more buzz about what we're doing there. But both remain really important.

其實是兩個面向都有：外部玻璃（glazing）以及車內內裝。而你現在看到的，是市場對內裝的興奮感正在升溫，所以你聽到更多我們在內裝方面的討論熱度。但兩者仍然都非常重要。

Both can be similar size markets and so we are really aggressively pursuing both of them. I think in both areas you will see us breakthrough. We will get revenues in both areas. Right? And we are already experiencing that. How big it will be, that we just don't know yet. We just don't know. Unless Tony wants to make a guess. Tony?

兩者都可能是規模相近的市場，所以我們正非常積極地同時推進。我認為在這兩個領域你都會看到我們取得突破。我們會在兩個領域都拿到營收，對吧？而我們其實已經在經歷這件事了。至於會有多大，我們現在還不知道。我們真的不知道。除非 Tony 想猜一下。Tony？

I do not.

我不想。

All right. So I guess shifting gears. Tony, you spoke to some one-time Hemlock buys possibly impacting 4Q. We have some noise surrounding kind of the Dow Corning transaction. So can you help us understand what a more normalized equity earnings line should look like in 2017 and is roughly $80 million annually plus or minus the right way to think about 2017 equity earnings potential?

好吧。那我再換個話題。Tony，你提到一些一次性的 Hemlock 採購可能會影響第四季。我們也聽到一些與 Dow Corning 交易相關的雜訊。你能否協助我們理解，2017 年較為常態化的權益法收益（equity earnings）應該長什麼樣子？以每年約 8,000 萬美元上下來看待 2017 年的權益法收益潛力，這樣的想法對嗎？

Yes. I mean were not giving guidance on 2017 but I think in general that's right. What you have to remember about Hemlock is that a lot of their volume is under contract and so the cycles of the timing will depend on when the customers meet those contracts. And historically, if you go back over the last four or five years, that's been primarily in the fourth quarter. You know sometimes it moves to the third quarter a little bit and the like, but in general, it's in the fourth quarter. And so I think somewhere in the $80 million to $100 million range is right.

是的。我們不會提供 2017 年的指引，但大致上你這樣理解是對的。你要記得 Hemlock 很多出貨量是在合約之下，所以週期與時點取決於客戶何時履行那些合約。歷史上，如果你回看過去四、五年，主要都發生在第四季。有時會稍微移到第三季之類，但一般而言是在第四季。所以我認為大概落在 8,000 萬到 1 億美元的區間是合理的。

Great and just on the optical communication side and the hyper-scale commentary, is there anything I guess just given that every check seems to be pointing to a very hot market in general but still understanding lumpiness, is there anything in particular you can point to?

很好。再問一下光通訊這邊以及你提到的超大規模（hyper-scale）客戶評論：考量到各種調查似乎都指向整體市場非常火熱，但也理解仍會有波動性，你是否能指出任何特別的因素？

Is there ongoing shifts from 40 to 100 main customers, are you seeing constraints elsewhere in the supply chain that maybe are preventing you from generating better growth, or is there any comment you can make on AFOP? Was the slowdown more pervasive with that acquisition?

例如主要客戶是否持續從 40G 轉向 100G？你們是否看到供應鏈其他環節的限制，可能阻礙你們帶來更好的成長？或是你能對 AFOP 做任何評論嗎？那次收購後的放緩是否更為普遍？

I think that right now we've got a signal-to-noise sort of issue. There's nothing we've seen so far that's telling us that the signal ought to be fundamentally different than the sort of logic that you've laid out. We think the same things. We think there's a good amount of noise level around that signal. Timing. Different architectures being tried in one place versus another. What does their supply chain inventory look like? Did they buy our product perhaps before they buy storage product? Right?

我認為目前我們面臨的是「訊號與雜訊」的問題。到目前為止，我們沒有看到任何跡象顯示，訊號應該與你所提出的基本邏輯有根本差異。我們的看法也一樣。我們認為在那個訊號周圍有相當多的雜訊：時點、不同地點嘗試不同架構、他們供應鏈的庫存長什麼樣子、他們是否可能先買我們的產品再去買儲存相關產品，對吧？

There's all these things that I'm not so sure yet that we are able to look forward and say, let me deconvolve all that noise. This is what's going to happen. I think we will get better at it as the business continues to scale, and as we get better at it, we will give you better tools to understand it. But nothing we are seeing right now that takes us off your fundamental logic. We will keep working to get better sense of capability. Does that make sense?

有很多這類因素，我還不確定我們是否已經能夠向前看，並說：讓我把所有雜訊拆解開來，然後告訴你接下來會發生什麼。我想隨著業務持續擴大，我們會更擅長這件事；而當我們更擅長時，我們也會提供你更好的工具來理解它。但目前我們看到的沒有任何東西會讓我們偏離你所說的基本邏輯。我們會持續努力提升判讀能力。這樣說有道理嗎？

Yes, but is AFOP any different or any one of your more recent acquisitions?

有道理，但 AFOP 或你們較近期的其他收購案，有任何不同嗎？

No.

沒有。

No. Thank you for taking my questions. Good luck.

沒有。謝謝回答我的問題。祝好。

Steven Fox from Cross Research.

Cross Research 的 Steven Fox。

Thanks. Good morning. On the Gorilla Glass mix. I think you mentioned that Gorilla Glass 5 is off to a really good start. I think in the last few months you've talked about Gorilla Glass 4 becoming the largest percentage of the unit sales. So I was wondering if you could reset where that mix is today and how it plays out with the Gorilla Glass 5 ramping? Then I have a follow up.

謝謝，早安。關於 Gorilla Glass 的產品組合（mix）。我想你提到 Gorilla Glass 5 的起步非常好。過去幾個月你也談到 Gorilla Glass 4 已成為出貨量中占比最大的產品。所以我想請你重新說明一下目前的組合狀況，以及隨著 Gorilla Glass 5 放量（ramping）會如何演變？之後我還有追問。

I think Gorilla Glass 4 is still the largest part of what we ship. You know Gorilla Glass 5 is just starting. It has had a more successful launch than we had with Gorilla Glass 4 and we are on some devices, you know I mentioned one that we announced last week, and there will be more coming up in this quarter. So I think as time goes on you're going to continue to see the Gorilla Glass 5 is going to become a bigger part of the mix and from a pricing standpoint that's good, from a profitability standpoint that's good.

我認為 Gorilla Glass 4 仍然是我們出貨中占比最大的部分。Gorilla Glass 5 才剛開始。它的上市表現比 Gorilla Glass 4 當時更成功；我們已經用在一些裝置上，我提到過一款我們上週宣布的機種，而本季還會有更多推出。所以我認為隨著時間推進，你會持續看到 Gorilla Glass 5 在組合中的占比變大；從定價角度看這是好事，從獲利能力角度看也是好事。

Do you think that there's a path to Gorilla Glass 5 eventually becoming a majority of the unit sales or is it too high end to think of that in the next year or so?

你認為 Gorilla Glass 5 最終有機會成為出貨量的多數嗎？還是它太偏高階，以至於在未來一年左右不太可能？

I think it's too early to tell. There is that potential because it's a very unique product. It's really competitively advantaged. So that's possible. I think that's possible. But it's just a little early for us to tell. Let's get another quarter underneath our belt. We have only had it out there for a few months. Give us a few more months and then hit us with the question again, okay, Steve?

我認為現在還太早下結論。確實有那個潛力，因為它是一個非常獨特的產品，具備明顯的競爭優勢。所以有可能，我認為有可能。但現在對我們來說還稍早。再讓我們多跑一個季度看看。我們推出也才幾個月。再給我們幾個月，然後你再來問這個問題，好嗎，Steve？

That's fair. And then just lastly, another Gorilla Glass question just in terms of the increasing your content or actually doubling your content per device, can you sort of give us some road marks in terms of where you're at now? Did you actually see some significant progress in this, this quarter, or would we think of that slope maybe picking up next quarter, quarter after? Any help there would be appreciated.

合理。最後再問一個 Gorilla Glass 的問題：關於提高你們在單一裝置上的含量（content），甚至把每台裝置的含量加倍，你能否給我們一些里程碑，說明目前進展到哪裡？你們這一季是否已經看到顯著進展？還是我們應該把成長斜率的加速，放在下一季或再下一季來看？若能提供一些方向會很有幫助。

So I think the two areas to think about, about doubling our overall revenue in this space is introducing higher price point products that perform better, and you saw us in this last quarter introduce two of them. Right? And then take up on GG5 has made us feel good and that's definitely going to help.

我認為要把我們在這個領域的整體營收翻倍，可以從兩個面向來看：第一是推出更高單價、性能更好的產品，而你看到我們在上一季推出了其中兩款，對吧？另外，GG5 的採用進展讓我們感覺很好，這肯定會有幫助。

The other piece is increasing the amount of glass utilized both on phones, as well as other apps like wearables, and those performance improvements that we've announced on GG5 that previously on GG4 certainly have shifted the design conversation towards a desire to use all glass enclosures or use more glass per enclosure. It's too early to tell how those design conversations turn into product sets. But it's without doubt our improving performance is enabling designers to think about the product in a different way.

另一個面向是提高玻璃的使用量，不僅在手機上，也包括穿戴式等其他應用。而我們在 GG5（以及先前 GG4）所宣布的性能提升，確實已把設計端的對話推向更想採用全玻璃機身，或在每個機身上使用更多玻璃。這些設計討論會如何轉化為實際產品組合，現在還太早判斷。但毫無疑問，我們性能的提升正在讓設計師用不同方式思考產品。

Just think about it this way. If you think it is likely the material is going to break if it's dropped on asphalt, then you probably aren't going to double the amount of that material and put it on both fronts and backs. If you think it is unlikely that happens and GG5 certainly makes it less likely, right, and other products we are working on will make it less likely still, then that opens up the potential to consider that type of design choice. But still too early to bank it. It's our strategic desire. We are making progress but way too early to declare victory. Okay?

你可以這樣想：如果你認為材料掉到柏油路上很可能會破，那你大概不會把這種材料的用量加倍，並同時用在正面與背面。如果你認為不太可能發生破裂，而 GG5 的確讓這種情況更不容易發生，對吧？而我們正在開發的其他產品會讓它更不容易發生，那就會打開採用那類設計選擇的可能性。但現在仍太早把它當成既定事實。我們的策略目標是如此。我們正在取得進展，但現在宣告勝利還太早。好嗎？

That's very helpful. Appreciate the color. Thanks again.

非常有幫助。感謝補充說明。再次謝謝。

Stanley Kovler from Citi Research.

Citi Research 的 Stanley Kovler。

Hello. Good morning. Thanks for taking my question. I just have one question on the environmental business and then a follow-up on display. So on environmental as you look out into 2017 and we have the European regulation that's driving the gas particular filter opportunity. Do you see that as more of a second-half opportunity given that the timing of the regulation kicks in, in the latter half of the year, or should we expect a buildup in the first half as well as the product launches get going?

你好，早安。謝謝讓我提問。我只有一個關於環境業務的問題，然後再追問顯示器。就環境業務而言，展望 2017 年，歐洲法規正在推動汽油微粒濾清器（gas particulate filter）的機會。你認為這會比較偏向下半年的機會，因為法規生效時點在年中之後；還是我們也應該預期上半年就會開始累積動能，因為產品上市會陸續展開？

I think it's mostly going to be a second-half opportunity.

我認為這主要會是下半年才有的機會。

Thanks, and then on display, as we think about the panel customer capacity heading into 2017 and just the tight capacity that they have for this year, is there an opportunity for them to start building earlier in the year sort of for next year because a number of the panel makers are shifting capacity to OLED, and given where supply tightness is right now, they would like to maybe buildup in advance? And how would that impact your retail demand outlook into 2017, if panel capacity demand remains tight and a shifting weight from LCD to OLED for smartphones and other products? Thank you.

謝謝。接著談到顯示面板，當我們思考面板客戶在進入2017年時的產能，以及他們今年產能相當吃緊的情況下，他們是否有機會在年初就開始提前建置、為明年做準備？因為不少面板廠正把產能轉向OLED，而在目前供應如此緊俏的情況下，他們可能希望提前備貨？如果面板產能需求仍然緊張，且智慧型手機與其他產品的重心從LCD轉向OLED，這會如何影響你們對2017年零售需求的展望？謝謝。

I'm not so sure it would really change what we would think about from a retail demand standpoint, but it certainly would have a difference relative to cycling and when people would start building for various retail peak seasons including the fourth-quarter season. So, yes, I think we're not here to talk about 2017, but I think when we do talk about 2017 and we look at the cycle in 2017, it is likely to be a little bit different than what we've seen in the past for that reason.

我不太確定這會真正改變我們從零售需求角度的看法，但它確實會在循環節奏上、以及人們何時開始為各種零售旺季（包括第四季旺季）備貨方面產生差異。所以，是的，我想我們今天不是來談2017年的；但我認為當我們談到2017年並觀察2017年的循環時，基於這個原因，它很可能會與我們過去看到的情況有些不同。

Yes, and, Stan, I think that's a really -- I haven't thought about it quite that way. I think that's a good question and I think you are right to bring up to the extent that people do the POLED by adding new panel capacity then that doesn't impact any of the dialogue to the extent that they take out existing panel capacity then to put in place a new capacity, your question could impact the behavior at that micro level. So let us think a little bit more about that, as we step back and think about POLED overall, right, as you have heard us speak before. We look at this as a net positive for us on volume because our share is so high on POLED relative to the LTPS product that it is replacing.

是的，Stan，我覺得這真的是一個——我之前沒有用這種方式想過。我認為這是個好問題，而且你提得很對：如果大家是透過新增面板產能來做POLED，那就不會影響我們討論的任何內容；但如果他們是把既有面板產能移除、再用新的產能取代，那麼你的問題就可能在微觀層面影響其行為。所以讓我們再多想一想。當我們退一步、從整體來看POLED時，正如你之前聽我們說過的，我們把這視為在出貨量上對我們是淨正面，因為相較於它所取代的LTPS產品，我們在POLED上的市占率高得多。

On the dynamic that you are discussing if we have a customer where we have an above average market share, right? That takes out capacity then that could impact us for a temporary time period until the whole thing rebalances for about 1 to 2 share points. Similarly if we have a customer that has below our average market share and they take out capacity, we could see a gain. It would be temporary for a while until the whole industry rebalances. But how that whole dynamic works its way through, I think we've got to do a little bit better job explaining, and we will do that as we get a little closer to next year, Stan.

就你所討論的動態而言，如果我們有一個客戶，我們在那裡的市占率高於平均水準，對吧？而他們移除產能，那麼在整體重新平衡之前，可能會在一段暫時期間對我們造成影響，大約是1到2個市占點。同樣地，如果我們有一個客戶的市占率低於我們的平均水準，而他們移除產能，我們反而可能看到市占提升。這也會是暫時的，直到整個產業重新平衡。但這整個動態如何傳導，我認為我們需要把說明做得更好一些；等到更接近明年時，我們會再說清楚，Stan。

I appreciate it and if I could quickly follow-up on the OLED opportunity for next year. For some of the product cycles on potential new products that will have OLED and you referenced your high share, when do the lead times start for you to actually build and get revenue for potential second-half product cycles next year on the POLED opportunity that you referenced? Thank you.

了解，謝謝。如果我可以快速追問一下明年OLED的機會：針對一些可能採用OLED的新產品週期，你提到你們的高市占。就你們而言，若是明年下半年的潛在產品週期、你提到的POLED機會，你們實際開始備料生產並開始認列營收的前置時間大概何時開始？謝謝。

We will start pretty early, Stan, but I think what is really important to keep in mind is the total glass demand for POLED is going to be like 1% of the overall glass market for the next couple of years. So we agree it's exciting tech, that's why we been investing in it for four or five years and that's why our share position is really strong, but as far as seeing it in our financials, I don't think you're going to see it, buddy. Does that make sense? You still there?

我們會很早就開始，Stan，但我認為真正重要的是要記住：在未來幾年，POLED的總玻璃需求大概只會占整體玻璃市場的1%左右。所以我們同意這是令人興奮的技術，這也是為什麼我們已經投資了四、五年，且我們的市占地位非常強；但就反映在財務數字上而言，我不認為你會看到它，老兄。這樣有道理嗎？你還在線上嗎？

Appreciate it. Thank you.

感謝說明。謝謝。

Greg, we've got time for one more question.

Greg，我們還有時間再問一題。

Okay. That question comes from the line of George Notter from Jefferies.

好的。下一題來自Jefferies的George Notter。

Thanks a lot guys for squeezing me in. I guess I wanted to go back to the optical business and your comments about hyper-scale customers. I guess my impression on your optical business is the dominant variable there is really your ability to ramp up and create additional capacity and supply, and so I'm a bit confused about the comments about the hyper-scale customers causing a little bit more I guess softer trends there. I would assume that given how supply constrained you have been that extra supply would've been sopped up somewhere else. Any thoughts on that?

非常感謝各位讓我插隊提問。我想回到光學業務以及你們對超大規模（hyper-scale）客戶的評論。我對你們光學業務的印象是，那裡最主要的變數其實是你們擴產、提升產能與供給的能力，所以我有點困惑，為什麼你們會說超大規模客戶導致那邊的趨勢稍微轉弱。我原本會以為，考量你們一直以來供應受限，新增的供給應該會在其他地方被吸收掉。你們怎麼看？

I think from an overall standpoint is, as we looked into going into the quarter, we expected a certain amount to actually go to those hyper-scale customers, and basically what happened is that those customers ordered less than what we had originally projected. Although a lot of our capacity is spongeable on a very micro level, there wasn't some place else we could move some of that capacity to.

我想從整體角度來看是：在進入本季時，我們原本預期會有一定的量會賣給那些超大規模客戶，而實際發生的是，那些客戶的下單量低於我們原先的預估。雖然我們有不少產能在非常微觀的層面上可以被吸收，但並沒有其他地方可以讓我們把其中一部分產能轉移過去。

So in macro you are right. In micro if you expect to sell a product and you make it, then you have used that capacity. But in macro you are right, over the fullness of time, we are net capacity constrained here, which is why we are adding capacity. So over the sweep of time it will all turn into revenue, but it's really important to make the right thing to have a particular quarter come out.

所以在宏觀層面你是對的；在微觀層面，如果你預期要賣某個產品、也把它做出來了，那你就已經使用了那部分產能。但在宏觀層面你是對的：從更長的時間跨度來看，我們的確是淨產能受限，這也是為什麼我們正在擴產。所以從時間的推移來看，這些最終都會轉化為營收，但要讓某一季的結果符合預期，做對產品是非常重要的。

Got it. Great. Thank you.

了解。很好。謝謝。

Okay. That's the end of our questions. Wendell, do you have some closing comments?

好的。問答到此結束。Wendell，你有結語要補充嗎？

Let me just close out the call by emphasizing we are really pleased with our progress on our framework. Since we announced it a year ago, we've gained traction with our customers on our growth initiatives. We have a long way to go but we are making progress. We realigned our interest in Dow Corning and we returned approximately $6 billion to shareholders by year end is what we anticipate to do. We are also creating significant value for our shareholders along the way.

我最後做個總結，強調我們對於框架（framework）推進的進展感到非常滿意。自從一年前我們宣布以來，我們在成長計畫上已經獲得客戶的動能。我們還有很長的路要走，但我們正在前進。我們也重新調整了在Dow Corning的權益，並且我們預期在年底前將約60億美元回饋給股東。我們也在過程中持續為股東創造顯著價值。

Thanks, everyone, for listening. We look forward to updating you on our framework progress and results throughout the rest of the quarter and year.

謝謝各位收聽。我們期待在本季與今年剩餘時間持續向各位更新我們的框架進展與成果。

Thank you, Wendell, and thank you all for joining us today. I wanted to let everyone know that we will be meeting with investors at the Credit Suisse conference in Scottsdale in late November. Let us know if you are going to be there.

謝謝你，Wendell，也謝謝各位今天加入。我想讓大家知道，我們將在11月下旬於斯科茨代爾（Scottsdale）舉行的瑞士信貸（Credit Suisse）研討會與投資人會面。如果你也會出席，請告訴我們。

Also the web replay of today's call will be available on our website for one year starting later this morning. And at 11 AM, today, you will be able to access a telephonic playback by dialing 800-475-6701, access code 403563. The telephone replay will be available until 5 PM on Wednesday, November 8. Operator, that concludes our call. Please disconnect all lines.

另外，今天電話會議的網路重播將自今天稍晚起在我們網站提供，為期一年。今天上午11點，你也可以撥打800-475-6701並輸入存取碼403563，收聽電話回放。電話重播將提供至11月8日（週三）下午5點。接線員，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 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，今天的會議到此結束。感謝各位的參與，並使用AT&T Executive Teleconference。您現在可以掛線。