康寧 (GLW) 2017 Q1 法說會逐字稿

Welcome to the Corning Incorporated Quarter 1 2017 Earnings Results. It is my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations.

歡迎收聽康寧公司（Corning Incorporated）2017 年第一季財報結果說明。我很高興將電話會議交給投資人關係事業部副總裁 Ann Nicholson。

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

謝謝，各位早安。歡迎參加康寧第一季電話會議。今天與我一同出席的有董事長兼執行長 Wendell Weeks；資深副總裁兼財務長 Tony Tripeny；以及資深副總裁兼策略長 Jeff Evenson。

Before we begin our formal comments, I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks involve a number of 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案》所界定的範圍。這些談話涉及多項風險、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 used by management to analyze the business. A reconciliation of core results to the comparable GAAP values can be found in the Investor Relations section of our website at Corning. Slides are being shown live on our webcast to accompany our formal comments, and we encourage you to follow along. They'll also be available on our website for downloading. And now I'll turn the call over to Wendell.

也請注意，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來討論結果。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。核心結果與可比較 GAAP 數值的調節表可在康寧網站的投資人關係專區找到。我們的網路直播將同步顯示投影片以配合正式發言，建議各位一同觀看。投影片也可在我們網站上下載。接下來把電話交給 Wendell。

Thank you, Ann. Good morning, everyone. In January, we told you that we expected the momentum we built over the course of 2016 to continue in the 2017, and it has. This morning, we reported another excellent quarter.

謝謝你，Ann。各位早安。一月時我們告訴各位，我們預期 2016 年累積的動能將延續到 2017 年，而事實確實如此。今天早上，我們公布了另一個非常出色的季度。

First quarter sales were up 14% over last year, with growth in all businesses. EPS was $0.39, up 39% year-over-year. For the second quarter, we expect to sustain our momentum with year-over-year sales and EPS growth once again.

第一季銷售額較去年成長 14%，所有事業皆有成長。每股盈餘（EPS）為 0.39 美元，年增 39%。對於第二季，我們預期將再次維持動能，銷售額與 EPS 皆可望再度呈現年增。

Tony will cover our financial performance and outlook in greater detail in a few minutes.

Tony 將在幾分鐘後更詳細說明我們的財務表現與展望。

Our strong operating results and solid progress on value creation initiatives put us on track to deliver on our Strategy and Capital Allocation Framework goals. The framework outlines our leadership priorities and articulates the opportunities we see across our businesses. As we've shared with you, we designed the framework to create significant value for shareholders by focusing our portfolio and leveraging our financial strength.

我們強勁的營運成果，以及在價值創造計畫上的穩健進展，使我們有望達成「策略與資本配置架構」的目標。該架構概述我們的領導優先事項，並闡明我們在各項業務中看到的機會。如同我們與各位分享的，我們設計此架構是為了透過聚焦投資組合並運用財務實力，為股東創造顯著價值。

We think that the strategic and financial benefits of our framework are becoming even more apparent as we enter its second year.

我們認為，隨著進入架構的第二年，其策略與財務效益正變得更加明顯。

As you know, under our framework, we target generating $26 billion to $30 billion in cash through 2019, and plan to return more than $12.5 billion to our shareholders through repurchases and dividends.

如各位所知，在此架構下，我們的目標是在 2019 年前創造 260 億至 300 億美元現金，並計畫透過庫藏股回購與股利，向股東回饋超過 125 億美元。

We have made great progress against our goals. Since October 2015, we have returned more than $6.5 billion. Repurchases have reduced outstanding shares by approximately 24%. We increased the dividend, 14.8% in February, and 12.5% last year.

我們在目標上已取得重大進展。自 2015 年 10 月以來，我們已回饋超過 65 億美元。回購使流通在外股數約減少 24%。我們在 2 月將股利提高 14.8%，去年也提高了 12.5%。

Additionally, the framework calls for increasing the dividend by at least 10% in 2018 and 2019.

此外，該架構也要求在 2018 年與 2019 年至少各提高股利 10%。

Also, we plan to invest $10 billion to sustain our leadership and deliver growth over the long term.

同時，我們計畫投資 100 億美元，以維持領導地位並在長期帶動成長。

We are best in the world in 3 core technologies, 4 manufacturing and engineering platforms and 5 market access platforms. We focus 80% of our resources on opportunities that use existing capabilities in at least 2 of these 3 categories.

我們在 3 項核心技術、4 大製造與工程平台，以及 5 大市場通路平台方面皆為全球領先。我們將 80% 的資源聚焦於那些在上述 3 大類別中至少運用其中 2 類既有能力的機會。

We are investing in research and development, capital expansion and acquisitions to advance our innovation initiatives, strengthen our leadership and low-cost positions, and ultimately, outperform our competitors.

我們透過研發、資本擴張與併購投資，推進創新計畫、強化領導地位與低成本優勢，並最終超越競爭對手。

By pursuing our focus strategy, we believe that our likelihood of success increases, that our cost of innovation decreases, and that we create higher and more sustainable competitive barriers.

透過推動聚焦策略，我們相信成功機率將提高、創新成本將降低，並能建立更高且更可持續的競爭壁壘。

Our focus in leadership also attracts some of the world's leading companies to collaborate with Corning, because they see how our expertise and unique combination of capabilities can help them address some of their toughest challenges.

我們在領導力上的聚焦，也吸引全球一些領先企業與康寧合作，因為他們看到我們的專業與獨特能力組合，能協助他們解決最棘手的挑戰。

Verizon's announcement last week is a great example. The agreement commits Verizon to purchase a minimum of $1 billion of our optical solutions over the next 3 years as they reinvent their network to support 5G and new services. We will supply them with up to 20 million kilometers of optical fiber, annually.

Verizon 上週的公告就是很好的例子。該協議承諾 Verizon 在未來 3 年，為了重塑其網路以支援 5G 與新服務，將至少採購 10 億美元的我們光學解決方案。我們每年將供應其最多 2,000 萬公里的光纖。

Stepping back, all of our customers have the opportunity to benefit from our unique set of capabilities in Optical Communications. We are engaged in deep dialogue with major telecom players across the globe as they anticipate transformations in communications, education, health care, transportation, and ultimately, the way that we all live.

從更宏觀的角度來看，我們所有客戶都有機會受益於我們在光學通訊領域的獨特能力組合。我們正與全球主要電信業者進行深入對話，因為他們預期通訊、教育、醫療照護、交通運輸，乃至於我們所有人的生活方式都將發生轉變。

Corning's Optical Communications market access platform, essential to realizing their vision, because of our ability to economically expand capacity and deliver innovative solutions.

康寧的光學通訊市場通路平台對於實現他們的願景至關重要，因為我們具備以具成本效益的方式擴充產能並提供創新解決方案的能力。

Consequently, we expect to grow significantly faster than the optical markets we serve, and we've seen just that over the last 3 quarters.

因此，我們預期成長速度將顯著快於我們所服務的光學市場，而過去 3 個季度我們也確實看到這樣的表現。

Another great example of how some of the world's largest companies come to us for solutions can be seen in our automotive market access platform.

另一個例子，顯示全球一些最大型企業如何向我們尋求解決方案，可在我們的汽車市場通路平台中看到。

We are leveraging our position in this market by adding a significant new business for gas particulate filters or GPFs, as well as by building a Gorilla-sized automotive glass business.

我們正透過新增汽油微粒濾清器（GPF）這項重要新業務，以及打造規模如 Gorilla 般的汽車玻璃業務，來運用我們在此市場的地位。

Consistent with OEM announcements, we believe that GPFs will be the preferred approach to meet new regulations for particulate emissions from gasoline direct injection engines. GDI engines offer both higher performance and better fuel economy, and as a result, have grown to about 1/4 of passenger car sales worldwide, with units growing in the high teens annually.

依據 OEM 的公告，我們相信 GPF 將成為符合汽油缸內直噴引擎微粒排放新法規的首選方案。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比重已成長至約四分之一，且銷量每年以十幾%的高成長率增加。

We have won the majority of GPF platforms awarded, including several new ones in the first quarter. So far, our filters will be used on 50 gas direct injection models from 20 automakers in Europe and China. European Union 6c regulations introduced new real-world emissions tests starting in September of 2017. All new cars will need to comply with the rules starting in September of 2018. In December, China also finalized related regulations due to take effect in 2020.

我們已贏得已授予之 GPF 平台中的大多數，包括第一季新增的數個新平台。截至目前，我們的濾清器將用於歐洲與中國 20 家汽車製造商的 50 款汽油缸內直噴車型。歐盟 6c 法規自 2017 年 9 月起導入新的實際道路排放測試。自 2018 年 9 月起，所有新車都必須符合該規定。此外，中國也在 12 月定案相關法規，預計於 2020 年生效。

We expect gas particulate filters to become a significant business for Corning. GPFs offer the potential to increase our sales opportunity per vehicle by a factor of 3 to 4, with profitability similar to our current business. Our investment in GPF is ramping to support customer commitments, and you will start to see sales in the second half of the year.

我們預期汽油微粒過濾器將成為康寧一項重要業務。GPF 有潛力將我們每輛車的銷售機會提高 3 到 4 倍，且獲利能力與我們目前的業務相近。我們對 GPF 的投資正加速擴增以支援客戶承諾，您將在今年下半年開始看到銷售。

We are also seeing progress towards commercialization of Gorilla Glass for auto. Interest in interiors is accelerating, and we continue down the path to additional wins for exteriors.

我們也看到汽車用 Gorilla Glass 商業化正取得進展。對車內內裝的興趣正在加速升溫，而我們也持續朝著車外外裝取得更多勝利的方向前進。

To tap this opportunity, we are reapplying our core technologies and reusing our manufacturing assets to provide advantage glass that can make cars cleaner, safer and more connected.

為了掌握這項機會，我們正重新運用核心技術並重複利用製造資產，提供可讓汽車更潔淨、更安全且更互聯的優勢玻璃。

Our decades-long relationships with auto manufacturers have assisted in gaining collaboration on testing and development. The new relevance of our glass expertise reinforces Corning as a key innovation partner for auto OEMs.

我們與汽車製造商長達數十年的合作關係，有助於在測試與開發方面取得協作。我們玻璃專業的新相關性，強化了康寧作為汽車 OEM 的關鍵創新合作夥伴地位。

Looking ahead, we will showcase our full spectrum of automotive solution that the Society of Information Display's spring show.

展望未來，我們將在資訊顯示學會（Society of Information Display）的春季展會上展示我們完整的汽車解決方案組合。

Turning to our mobile consumer electronics market access platform, our goal is to double sales despite flattening smartphone unit growth.

談到我們的行動消費性電子市場進入平台，我們的目標是在智慧型手機出貨量成長趨於持平的情況下，將銷售額加倍。

Our approach here has 3 elements: first, we will capture more value per device by continuing to lead the market by providing our customers with best-in-class products. Gorilla Glass 5 leads the market for drop performance, and we are seeing that superior performance translate into a meaningful price and share gains that increase our revenue and profit per phone.

我們在此的策略有三個要素：第一，我們將持續以同級最佳產品引領市場，為客戶提供產品，從而提高每台裝置可取得的價值。Gorilla Glass 5 在抗摔表現方面領先市場，我們看到其卓越性能正轉化為顯著的價格與市占提升，進而提高我們每支手機的營收與獲利。

Superior performance also enables us to sell more glass per device. Given handset antenna requirements and the desire for wireless charging, glass is becoming a preferred material for phone backs, which at least conceptually, doubles our addressable market.

卓越性能也使我們能在每台裝置上銷售更多玻璃。鑑於手機天線需求以及對無線充電的偏好，玻璃正成為手機背蓋的首選材料，至少在概念上，這使我們可觸及的市場規模加倍。

Since the start of the year, we have seen Gorilla Glass 5 highlighted on the flagship models of several top brands. The list includes several leading phones for the China market plus the recently launched Samsung Galaxy S8, which uses Gorilla Glass 5 on both the front and the back.

自年初以來，我們看到多個頂級品牌的旗艦機種主打 Gorilla Glass 5。名單包括多款面向中國市場的領先手機，以及近期上市的 Samsung Galaxy S8，其正面與背面皆採用 Gorilla Glass 5。

And we are innovating to make glass even more attractive for glass backs. For example, our vibrant technology puts photorealistic images on the backs of devices for handhelds and notebooks. We've also launched a glass optimized for screen protectors for those who want added protection on their device.

我們也持續創新，讓玻璃背蓋更具吸引力。例如，我們的 VIBRANT 技術可在手持裝置與筆記型電腦的背面呈現擬真影像。我們也推出一款針對螢幕保護貼最佳化的玻璃，提供希望為裝置增加額外防護的使用者。

Our second lever to double sales is to gain share in the value segment. In February, we announced the collaboration with Micromax, India's leading device manufacturer to bring Gorilla Glass to their Vdo smartphones that are designed for the value segment customer. We are thrilled that Micromax opted to give their customers' phones the protection that Gorilla Glass offers.

我們將銷售額加倍的第二個槓桿，是在價值型（中低價位）市場提升市占。2 月，我們宣布與印度領先的裝置製造商 Micromax 合作，將 Gorilla Glass 導入其面向價值型客群設計的 Vdo 智慧型手機。我們很高興 Micromax 選擇為其客戶的手機提供 Gorilla Glass 所帶來的防護。

Thirdly, we can win in new device categories. For example, Gorilla Glass SR+ offers outstanding scratch performance and impact resistance on wearables, such as the Gear 3 from Samsung.

第三，我們能在新的裝置類別中取勝。例如，Gorilla Glass SR+ 在穿戴式裝置上提供出色的抗刮表現與抗衝擊能力，例如三星的 Gear 3。

In all cases, our close relationships with customers enable us to work jointly with them on compelling new mobile consumer products.

在所有情況下，我們與客戶的緊密關係使我們能與其共同開發具吸引力的新型行動消費性產品。

Our results for the first quarter, with sales up 32% year-over-year, demonstrate the traction that we are getting in this market access platform.

我們第一季的結果顯示，銷售額年增 32%，證明我們在此市場進入平台上正取得動能。

And briefly, I wanted to highlight the very positive state of affairs in our Display business, where our long term objective is to stabilize returns.

另外我也想簡要強調，我們顯示器業務目前狀況非常正面，而我們的長期目標是穩定報酬。

As Tony will elaborate, the glass price decline in the first quarter was moderate and equal to the best first quarter decline we have seen in the past 6 years.

正如 Tony 將進一步說明，第一季玻璃價格下滑幅度溫和，且與過去 6 年來我們所見最佳的第一季跌幅相當。

We are seeing a more favorable LCD glass pricing environment today than we've seen in many years, and believe the full year 2017 price decline should be less than last year. Specifically, we expect a price decline of about 10% or possibly even better.

我們目前看到的 LCD 玻璃定價環境比多年來任何時候都更有利，並相信 2017 全年價格下滑幅度將小於去年。具體而言，我們預期價格下滑約 10%，甚至可能更好。

The Display business offers excellent cash flow to Corning, while also presenting us with the potential for additional revenue streams as we work with customers on innovations that help them advance state-of-the-art displays.

顯示器業務為康寧帶來優異的現金流，同時在我們與客戶合作推動創新、協助其提升最先進顯示技術之際，也為我們帶來額外營收來源的潛力。

These examples are also a great indication of how we are investing $10 billion to grow sales and sustain our industry leadership.

這些例子也清楚顯示，我們正投資 100 億美元以推動銷售成長並維持我們的產業領導地位。

In summary, we are on track to deliver our 2017 objectives and overall framework goals. As I noted, the strategic and financial benefits of Corning's cohesive and focused portfolio are becoming even more apparent as we enter the second year under our framework.

總結而言，我們正按計畫達成 2017 年目標以及整體架構目標。如我所提到的，隨著我們進入該架構下的第二年，康寧一致且聚焦的產品組合所帶來的策略與財務效益正變得更加明顯。

Let me turn the call over to Tony for a review of our results and details on our outlook for 2017. Tony?

接下來我把電話交給 Tony，請他回顧我們的業績並說明 2017 年展望的細節。Tony？

Thank you, Wendell, and good morning. As we noted in today's release, our first quarter core results reflect the strong year-over-year improvement we expected, and we are very pleased with our operating performance. First quarter sales and earnings per share were up significantly, and we expect both to rise again year-over-year in Q2.

謝謝你，Wendell，大家早安。如同我們在今日新聞稿中所述，我們第一季核心業績反映了我們預期的強勁年增改善，我們對營運表現感到非常滿意。第一季銷售額與每股盈餘均大幅成長，我們預期第二季兩者也將再度呈現年增。

Before I get into the details of our performance and results, I wanted to briefly note that the primary difference between our GAAP and core results for the first quarter is again, a noncash mark-to-market adjustment. As we have discussed previously, GAAP accounting requires earnings 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 be settled in the current quarter.

在我進入業績與結果細節之前，我想先簡要說明：第一季 GAAP 與核心結果之間的主要差異，再次來自一項非現金的按市價評價（mark-to-market）調整。如同我們先前討論過的，GAAP 會計要求對將於未來期間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，即使這些合約不會在當季結算。

During the first quarter, the yen strengthened, reducing the value of our hedge contracts, which resulted in a GAAP loss of $326 million when we marked the contracts to market as required by GAAP. To be clear, this mark-to-market accounting has no impact on our cash flow.

第一季期間，日圓走強，降低了我們避險合約的價值，因此依 GAAP 規定將合約按市價評價後，產生 3.26 億美元的 GAAP 損失。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。

We remain very pleased with the results of our hedging program and the economic certainty it delivers. Since its inception, we have received cash totaling $1.4 billion under our hedge contracts. These proceeds offset much of the yen-related fluctuations in Display's earnings. Hedging our earnings and cash flows through 2022 substantially mitigates risk from a weakening yen.

我們仍對避險計畫的成果以及其帶來的經濟確定性感到非常滿意。自該計畫啟動以來，我們已自避險合約收取合計 14 億美元現金。這些款項抵銷了顯示器業務盈餘中與日圓相關的多數波動。將盈餘與現金流避險延伸至 2022 年，可大幅降低日圓走弱所帶來的風險。

Now for investors who have additional questions on the mechanics of these contracts, please refer to the tutorial on FX hedge accounting on the Digital Media Disclosures section of our Investor Relations website. And as always, Ann and her team are available after the call.

此外，若投資人對這些合約的運作機制有更多問題，請參考我們投資人關係網站「數位媒體揭露」區的外匯避險會計教學（FX hedge accounting tutorial）。一如往常，Ann 與她的團隊會在電話會議後提供協助。

Turning to first quarter core results, sales rose 14% year-over-year, reflecting growth across all businesses. Net income was $407 million, up 20% year-over-year. Adjusting for the silicones business equity earnings, which were included in our results prior to the Dow Corning realignment last June, net income would have grown 42% year-over-year.

回到第一季核心業績，銷售額年增 14%，反映各事業皆有成長。淨利為 4.07 億美元，年增 20%。若調整矽利康（silicones）業務的權益法收益（該收益在去年 6 月 Dow Corning 重整前曾納入我們的結果），淨利將年增 42%。

First quarter EPS was $0.39, up 39%. Now these positive year-over-year results were due primarily to sales growth and higher profitability in optical communications, continued rapid adoption of Gorilla Glass 5 coupled with strong Gorilla Glass volume, and strong LCD glass volume growth in a sustained, moderate pricing environment.

第一季每股盈餘（EPS）為 0.39 美元，成長 39%。這些年對年（YoY）的正向成果主要來自光學通訊的銷售成長與獲利能力提升、Gorilla Glass 5 持續快速導入並帶動 Gorilla Glass 強勁出貨量，以及在持續且溫和的定價環境下 LCD 玻璃出貨量強勁成長。

Gross margins was 42.3%, in the range we expected, up 150 basis points from last year, driven by growth in Display, Optical and Specialty.

毛利率為 42.3%，落在我們預期區間內，較去年提高 150 個基點，主要由顯示科技、光學與特殊材料的成長所帶動。

SG&A was 13% of sales at $332 million. RD&E was 8% of sales at $200 million. Total gross equity earnings were $8 million.

銷售、一般及行政費用（SG&A）為銷售額的 13%，金額為 3.32 億美元。研發與工程（RD&E）為銷售額的 8%，金額為 2.00 億美元。權益法投資收益總額為 800 萬美元。

As a reminder, June 1, 2016 equity earnings included $58 million from Dow Corning's silicones business. Adjusting for that, equity earnings would have been up on a year-over-year basis. And our effective tax rate for the quarter was 18%.

提醒一下，2016 年 6 月 1 日的權益法投資收益包含來自 Dow Corning 矽酮業務的 5,800 萬美元。若排除該項影響，權益法投資收益將呈現年對年成長。本季有效稅率為 18%。

Turning briefly to the balance sheet, we ended the quarter with $4.9 billion of cash, approximately 35% of which is in the U.S.

簡要看一下資產負債表，本季期末現金為 49 億美元，其中約 35% 位於美國。

Adjusted operating cash flow for the quarter was $341 million, up from last year, and on track to deliver to our 4-year capital allocation plan.

本季調整後營運現金流為 3.41 億美元，較去年增加，並按計畫推進以達成我們 4 年期資本配置計畫。

Now let's look at detailed segment results and outlook, beginning with Display Technologies. The first quarter display market and our results were strong as we expected. Sales were $846 million and net income was $256 million.

接著我們來看各事業部門的詳細業績與展望，先從顯示科技（Display Technologies）開始。第一季顯示器市場與我們的表現如預期般強勁。銷售額為 8.46 億美元，淨利為 2.56 億美元。

Volume and pricing were in line with expectations. The glass market and our volume were up mid-teens over last year's first quarter. Sequential LCD glass price declined moderately, equaling the best first quarter decline of the past 6 years.

出貨量與價格符合預期。玻璃市場與我們的出貨量較去年第一季成長約十幾個百分點（mid-teens）。LCD 玻璃價格季對季溫和下滑，為過去 6 年中第一季最佳的跌幅表現。

Note that we believe, supply chain inventory exited the quarter at a healthy level and panel maker inventories remained lean.

請注意，我們認為供應鏈庫存於季末維持在健康水位，面板廠庫存仍然精實。

We continue to expect that the full year 2017 retail market, as measured in square feet of glass, will be up mid-single digits, driven primarily by demand for a larger size -- screen size TVs.

我們仍預期 2017 全年零售市場（以玻璃平方英尺衡量）將成長中個位數（mid-single digits），主要由更大尺寸—大螢幕電視的需求所帶動。

For the year, we also expect our glass demand to be up mid-single digits, in line with the overall market.

就全年而言，我們也預期我們的玻璃需求將成長中個位數，與整體市場一致。

We continue to believe, the full year 2017 pricing environment will be favorable and better than last year, with our glass prices declining about 10% or even possibly better.

我們仍相信 2017 全年定價環境將有利且優於去年，我們的玻璃價格下滑約 10%，甚至可能更好。

We believe this favorable pricing environment is driven by several factors. First, we monitor utilization, value chain inventory and other market factors very closely and [ realign ] capacity to market demand.

我們認為這樣有利的定價環境由多項因素驅動。首先，我們非常密切監控產能利用率、價值鏈庫存及其他市場因素，並將產能與市場需求進行[ 重新調整 ]。

Our current view is that glass supply is tight. If the situation changes, we will take steps necessary to align our capacity with market demand by reapplying tanks for other applications or by idling tanks.

我們目前的看法是玻璃供給偏緊。若情況改變，我們將採取必要措施，使產能與市場需求一致，包括將熔爐（tanks）改作其他用途或暫停部分熔爐運轉。

Second, our competitors continue to face profitability challenges at current pricing levels. Therefore, we expect that price declines will slow further as they try to remain profitable.

第二，我們的競爭對手在目前的價格水準下面臨獲利挑戰。因此，我們預期為了維持獲利，他們將使價格下滑進一步放緩。

And third, glass price declines will need to moderate even further or perhaps flatten or even increase for glassmakers to generate returns on new investments, given the high cost of building and running new capacity.

第三，鑑於新建與運轉新增產能的成本高昂，玻璃價格跌幅必須進一步趨緩，甚至可能持平或上升，玻璃製造商才能在新投資上取得報酬。

For the second quarter, we expect the LCD glass market and Corning volume to be up low single digit sequentially, which is the equivalent of up mid-single digits, year-over-year. Sequential price decline should be substantially less than in the first quarter.

就第二季而言，我們預期 LCD 玻璃市場與康寧出貨量將季對季成長低個位數（low single digit），相當於年對年成長中個位數。季對季價格跌幅應將明顯小於第一季。

We continue to expect supply chain inventory at year-end 2017 will be similar to the lean level at the end of 2016. Over the course of Q2 and Q3, supply chain inventory should expand in preparation for our fourth quarter retail demand, which will then draw inventory down.

我們仍預期 2017 年底供應鏈庫存將與 2016 年底的精實水位相近。在第二季與第三季期間，供應鏈庫存應會擴增，以因應第四季零售需求，之後需求將帶動庫存回落。

In summary, we are very pleased with the current dynamics in our display business and our progress in stabilizing returns. We will continue to monitor and keep you posted.

總結來說，我們對顯示事業目前的動態以及我們在穩定報酬方面的進展感到非常滿意。我們將持續監控並隨時向各位更新。

Let's move to Optical Communications, where the first quarter results were strong as sales rose 34%, and NPAT more than tripled over last year.

接著看光學通訊（Optical Communications），第一季表現強勁，銷售額成長 34%，稅後淨利（NPAT）較去年增加逾三倍。

Even if we exclude the effect of the software implementation issue that constrained sales in last year's first quarter, sales grew mid-teens in both carrier and enterprise. In particular, we benefited from strong growth in the North America fiber-to-the-home market.

即使排除去年第一季因軟體導入問題而限制銷售的影響，電信商與企業兩大市場的銷售仍皆成長約十幾個百分點（mid-teens）。尤其我們受惠於北美光纖到府（FTTH）市場的強勁成長。

For the second quarter, we expect sales to increase approximately 10% year-over-year. We are well on our way to delivering low-teen sales growth for the year.

就第二季而言，我們預期銷售額將年對年增加約 10%。我們正穩步推進，以達成全年低十位數（low-teen）的銷售成長。

We see spending by key industry leaders, among them Verizon, shifting more towards optical solutions. This is an important lever for us to realize our own growth -- our own goal of growing Optical Communications, from $3 billion to $5 billion by 2020.

我們看到關鍵產業領導者（包括 Verizon）的支出正更多轉向光學解決方案。這是我們實現自身成長的重要槓桿—我們的目標是在 2020 年前將光學通訊業務由 30 億美元成長至 50 億美元。

To meet this growing demand, we are investing in additional capacity. These investments are factored into our 4-year capital spending plan of $6 billion to $7 billion.

為滿足這項成長中的需求，我們正投資擴增產能。這些投資已納入我們 4 年期 60 億至 70 億美元的資本支出計畫。

In Environmental, first sales increased 4% and net income was flat. First quarter automotive sales were again a record of 14% year-over-year, driven by light-duty substrates as auto demand worldwide was strong.

在環境科技（Environmental）方面，第一季銷售成長 4%，淨利持平。第一季汽車相關銷售再創年對年 14% 的新高紀錄，主要由輕型車用載體（light-duty substrates）帶動，因全球汽車需求強勁。

The heavy-duty diesel market remained weak, particularly in North America. Our total diesel sales were down year-over-year.

重型柴油市場仍然疲弱，尤其在北美。我們的柴油相關總銷售年對年下滑。

For the second quarter, we expect to report sales consistent with Q2 last year, as the auto market remains healthy globally and offsets heavy-duty weakness.

就第二季而言，我們預期銷售將與去年第二季相當，因全球汽車市場維持健康，可抵消重型車市場的疲弱。

As we've previously noted, our platform wins in the emerging GPF market requires select capacity and engineering investments. In the near term, you will see both cost on our P&L and capital expenditures.

如我們先前所提，我們在新興 GPF 市場的平臺得標需要特定的產能與工程投資。短期內，您將在我們的損益表（P&L）與資本支出中同時看到相關成本。

As Wendell mentioned, we are excited about the GPF platform wins we have secured and expect sales to begin during the second half of the year. For 2017 overall, we continue to expect sales to be consistent to up slightly from 2016.

如 Wendell 所提，我們對已取得的 GPF 平臺得標感到振奮，並預期銷售將於下半年開始貢獻。就 2017 全年而言，我們仍預期銷售將與 2016 年持平或小幅成長。

Let's move to Specialty Materials, where we also are very pleased with our performance. First quarter sales rose 32% over last year, ahead of our expectations, led by strong Gorilla Glass volume. Net income was up 50%, year-over-year.

接著看特殊材料（Specialty Materials），我們同樣對表現非常滿意。第一季銷售較去年成長 32%，優於我們預期，主要由 Gorilla Glass 強勁出貨量帶動。淨利年對年成長 50%。

We made progress on all 3 levers to grow in the mobile consumer market that Wendell described. In particular, we saw the benefit of Gorilla Glass 5's price and share gains in the fourth quarter and those benefits continued in Q1.

我們在 Wendell 所描述、用以在行動消費市場成長的 3 大槓桿上都取得了進展。尤其是，我們在第四季看到了 Gorilla Glass 5 的價格與市占提升所帶來的效益，而這些效益在第一季仍持續延續。

For example, a number of phones have adopted glass on the backs, including the Samsung Galaxy S8, The LG G6 and the Google Pixel. We expect a positive financial impact from Gorilla Glass 5 adoption throughout 2017.

例如，許多手機已採用玻璃背蓋，包括 Samsung Galaxy S8、LG G6 以及 Google Pixel。我們預期 Gorilla Glass 5 的採用將在 2017 年全年帶來正面的財務影響。

Our growth prospects remain strong in mobile consumer electronics. As Wendell described, our innovation -- our innovative products provide added value for consumers, particularly in terms of durability and create new opportunities for us to increase sales.

我們在行動消費性電子的成長前景依然強勁。如 Wendell 所述，我們的創新——我們的創新產品為消費者帶來附加價值，特別是在耐用性方面，並為我們創造新的機會以提升銷售。

We expect sales growth in the second quarter to be in the high-teens, year-over-year. Exactly how much we will see for the full year, continues to be dependent on the timing and extent of customers deploying Gorilla Glass 5 and other Corning innovations.

我們預期第二季銷售年增率將落在高十幾%的區間。至於全年最終會達到多少，仍取決於客戶導入 Gorilla Glass 5 與其他康寧創新產品的時點與規模。

As we move through the year, keep in mind that the supply chain in this market is driven by the timing of new product launches, which can result in significant fluctuations in year-over-year growth rates for individual quarters. And we will certainly keep you posted as the year progresses.

隨著我們走過今年，請記住此市場的供應鏈是由新產品上市時程所驅動，這可能導致各季度的年增率出現顯著波動。我們也一定會在今年進展過程中持續向各位更新。

In Life Sciences, the first quarter sales and net income were up year-over-year, and a bit ahead of our expectations. For full year 2017 and the second quarter, we continue to expect low single-digit sales growth, year-over-year.

在生命科學事業方面，第一季銷售與淨利皆較去年同期成長，且略優於我們的預期。對於 2017 全年與第二季，我們仍預期銷售將呈現低個位數的年增。

As for our innovation program in pharmaceutical packaging, we continue to make progress and look forward to sharing milestones.

至於我們在藥品包裝的創新計畫，我們持續取得進展，並期待與各位分享重要里程碑。

Now shifting to the full company P&L, for the second quarter, we expect year-over-year growth in sales and EPS, once again. We expect second quarter gross margin will be in the range of 42% to 43%. SG&A and RD&E spending should be approximately 14% and 8% of sales, respectively.

接著轉到公司整體損益表（P&L），就第二季而言，我們預期銷售與每股盈餘（EPS）將再次呈現年增。我們預期第二季毛利率將落在 42% 至 43% 的區間。銷售、一般及行政費用（SG&A）與研發及工程費用（RD&E）支出分別約占銷售額的 14% 與 8%。

We expect other income, other expense to be a net of expense of approximately $25 million to $35 million, and second quarter total gross equity earnings are expected to be approximately $10 million to $20 million.

我們預期其他收入、其他費用合計將為淨費用約 2,500 萬至 3,500 萬美元，而第二季合計股權法收益（total gross equity earnings）預期約為 1,000 萬至 2,000 萬美元。

Please recall that the second quarter of 2016 also included the equity earnings from the silicones business.

請回想，2016 年第二季也包含來自矽酮（silicones）業務的股權法收益。

We will lap the strategic realignment of Dow Corning in June. Starting in Q3, year-over-year comparisons of equity earnings will be apples-to-apples. We continue to believe full year gross equity earnings will be approximately $150 million, predominantly from Hemlock Semiconductors.

我們將在 6 月跨過（lap）Dow Corning 策略重整的比較基期。自第三季起，股權法收益的年對年比較將是同口徑（apples-to-apples）。我們仍相信全年合計股權法收益約為 1.5 億美元，主要來自 Hemlock Semiconductors。

And we expect our effective tax rate for the second quarter and full year 2017 to be approximately 17% to 18%, and CapEx to be approximately $1.5 billion for the year.

此外，我們預期第二季與 2017 全年的有效稅率約為 17% 至 18%，而全年資本支出（CapEx）約為 15 億美元。

Finally, let me comment on our plan to return at least $12.5 billion to shareholders under our framework.

最後，我想談談我們在該框架下，計畫至少向股東回饋 125 億美元的方案。

Through the end of the first quarter, we have returned more than $6.5 billion to shareholders. In 2016, our repurchase activity included $2.5 billion in repurchases to offset the EPS impact from the loss of the silicones equity earnings from Dow Corning.

截至第一季末，我們已向股東回饋超過 65 億美元。在 2016 年，我們的庫藏股回購活動包含 25 億美元的回購，用以抵銷因失去 Dow Corning 矽酮業務股權法收益而對 EPS 造成的影響。

So far this year, we have returned $552 million. As you may recall, in February, the board increased the cash dividend per share by 14.8%.

截至今年目前為止，我們已回饋 5.52 億美元。如各位所記得，董事會在 2 月將每股現金股利提高了 14.8%。

For your modeling purposes, we still plan to repurchase a total of approximately $2 billion over the course of 2017. That's roughly what we repurchased in 2016, excluding the repurchase to offset the loss of silicones equity earnings.

就各位建模之用，我們仍計畫在 2017 年期間合計回購約 20 億美元。這大致相當於我們在 2016 年的回購金額（不含為抵銷矽酮股權法收益流失而進行的回購）。

Let me close by saying that we are very pleased with our continued positive momentum. We remain on track to deliver our 2017 objectives and the overall goals of our strategy and capital allocation framework. We feel very good about the rich set of opportunities ahead of us.

最後我想說，我們對於持續的正向動能感到非常滿意。我們仍按計畫推進，以達成 2017 年目標，以及我們策略與資本配置框架的整體目標。我們對於未來豐富的機會組合感到非常有信心。

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

接下來，我們進入問答。Ann？

Thanks, Tony. Operator, we are ready for the first question, please.

謝謝你，Tony。接線員，我們準備好進行第一個問題了，麻煩開始。

(Operator Instructions) Our first question will come from Joseph Wolf from Barclays.

（接線員指示）我們的第一個問題來自 Barclays 的 Joseph Wolf。

I wanted to just dig in a little bit deeper to this -- to the Verizon and the 5G opportunity. There was -- in the interview that I watched, there was a talk about a very large fiber count, a lot of millions of miles of fiber, and I'm wondering how this fits into it? It feels like it's covered in your current CapEx, but how incremental is this to the revenue? And is the architecture that they're talking about, with all those fibers, if you could just describe that's something that you think is going to be widely deployed by other telecom service providers?

我想再更深入一點探討——關於 Verizon 與 5G 的機會。在我看過的那段訪談中，提到非常龐大的光纖芯數、數百萬英里的光纖，我想知道這在整體中是如何契合的？感覺這已包含在你們目前的資本支出（CapEx）之中，但對營收而言，這會有多大的增量貢獻？另外，他們所談的那種架構、搭配那麼多光纖——如果你能描述一下，你是否認為其他電信服務供應商也會廣泛部署？

Joseph, this is Wendell. I think, with the second part of your question, you are on the key strategic opportunity here. As to the modeling, let's deal with that first. This is inside of our strategy of capital allocation investment plan. The $0.25 billion, we are investing in North Carolina to add to the world's lowest cost [ which is ] fiber optic facility. I think, what's important to note is Verizon's predecessor companies were one of the very first companies to deploy the fiber optic cable, and that of course, became the significant business that you see. Then, they were the first to deploy, on a large scale, fiber-to-the-home, which is a primary driver undercurrent financials as the rest of the world has followed that deployment. What you saw with this announcement is the statement of their strong belief that technology (inaudible) and architecture to deliver 5G and 4G densification, that is largely dependent upon our capabilities. If indeed others follow this technology choice, it will be extremely significant for us over time. Did that answer your question?

Joseph，我是 Wendell。我認為就你問題的第二部分而言，你抓到了這裡的關鍵策略機會。至於建模，我們先處理這部分。這是在我們資本配置投資計畫策略之內。這 2.5 億美元，我們投資在北卡羅來納州，以擴充全球成本最低的[即]光纖製造設施。我認為重要的是要注意，Verizon 的前身公司是最早部署光纖電纜的公司之一，而那當然也成為你現在所看到的重要業務。接著，他們又是第一個大規模部署光纖到府（fiber-to-the-home）的業者，這是其當前財務表現的一個主要驅動因素，因為世界其他地區也跟進了這樣的部署。你從這次公告中看到的是，他們強烈相信用以提供 5G 與 4G 網路加密（densification）的技術（聽不清）與架構，而這在很大程度上仰賴我們的能力。如果其他業者確實跟進採用這項技術選擇，長期而言對我們將極為重大。這樣有回答到你的問題嗎？

Yes, I just wanted to get into some of this -- I mean, one of the things that came out was that if you look at current or if you look at your FiOS build, there were 6 to 8 fibers per -- I don't know if that's neighborhood or per link or in the metro node or whatever you want to call the distribution point and there was a talk of -- and I think I heard this correctly, a 1,700 fiber pair sort of installation, and that density just sounds very, very significant, I'm wondering how we should think about that in the context of I guess the relatively small rollout that's planned for the next 2 years.

有，我只是想更深入了解其中一些——我的意思是，其中一個重點是，如果你看目前、或你看你們的 FiOS 建置，每個——我不確定是每個社區、每條鏈路、都會節點，或你想稱之為配線點——大概有 6 到 8 芯光纖；另外還提到——而且我想我沒聽錯——某種 1,700 對光纖的安裝，這樣的密度聽起來非常、非常可觀。我想知道，在未來兩年計畫相對小規模的推展情境下，我們應該如何看待這件事。

So I think, the way to think about it, is if you compare to something like a fiber-to-the-home build, this particular architecture will utilize about 2 to 6x more fiber than a fiber-to-the-home build. That range comes from what exact coverage you want, how exactly different neighborhoods are laid out. So that's very significant. I think, timing on the civil works and the way in which they roll out is a question best directed to the customer. But I think, you are on, I think the more significant question, which is, is this architecture going to become the dominant architecture as major wireless companies seek to prepare for 5G through 4G densification. If it's the case, that would be a very bullish outlook for our capabilities.

所以我認為，思考這件事的方式是：如果你拿它跟類似「光纖到府」（fiber-to-the-home）的建置相比，這個特定架構所使用的光纖量，將會比光纖到府建置多出約 2 到 6 倍。這個區間取決於你想要的確切覆蓋範圍，以及不同社區的實際佈局方式。所以這是非常顯著的。我認為，土木工程的時程以及他們推進的方式，這個問題最好直接請教客戶。但我認為，你問到的是更關鍵的問題，也就是：當主要無線公司透過 4G 加密部署來為 5G 做準備時，這種架構是否會成為主流架構。如果真是如此，對我們的能力而言將是非常看多的展望。

Okay, and I'll just round it out and let other people ask, would that mean incremental CapEx and capacity requirements for the fiber business if more than one vendor went here?

好的，那我就把問題補完整，讓其他人提問：如果不只一家供應商都採用這條路，這是否意味著光纖業務會有額外的資本支出（CapEx）與產能需求？

So I think, the way you should remember how we work on innovation is -- so we've been engaged for a number of years with Verizon on this innovation and strategic deployment. And they just chose to go public recently. That deep engagement that we have through our Optical Communications market access platform allows us to get technology insight as well as good insight as to how to plan for our capital allocation. So although every one of our different forecasts and planning cycles has different probability logs, by and large, you should think about this as being included in our $10 billion of investment in growth and sustained leadership. It's possible that things could reflect a little more to a higher demand case than what we are currently planning on, but I think, the best way to think about it is probabilistically and that is captured within our $10 billion.

所以我認為，你應該記住我們推動創新的方式是——我們與 Verizon 在這項創新與策略性部署上已經合作了好幾年。而他們最近才選擇對外公開。我們透過光學通訊（Optical Communications）的市場進入平台所建立的深度合作，使我們能取得技術洞見，也能對如何規劃資本配置有很好的掌握。因此，雖然我們每一次不同的預測與規劃週期都有不同的機率假設，但整體而言，你應該把這視為已包含在我們 100 億美元的「成長投資與維持領導地位」之中。確實有可能，實際情況會比我們目前規劃的需求情境略偏向更高需求，但我認為，最好的思考方式是以機率角度來看，而這已反映在我們的 100 億美元之內。

Next question will come from Mehdi Hosseini with SIG. We'll move along, next question will come from Jess Lubert with Wells Fargo Securities.

下一個問題將由 SIG 的 Mehdi Hosseini 提出。我們繼續進行，下一個問題將由富國證券（Wells Fargo Securities）的 Jess Lubert 提出。

I also had a couple of questions on the Optical business. And to start, maybe how come we shouldn't expect better than low-teens growth for the year, given the out-performance in Q1? And I was hoping you could help us understand the OpEx component of your fiber expansion plans, and to what extent the profitability of the Optical business might be impacted as you invest in more capacity this year?

我也有幾個關於光學業務的問題。首先，鑑於第一季的超預期表現，為什麼我們不應該預期今年能有優於「低十位數百分比」（low-teens）的成長？另外我也希望你能協助我們理解你們光纖擴產計畫中的營運費用（OpEx）部分，以及在今年投資更多產能時，光學業務的獲利能力可能會在多大程度上受到影響？

This is Tony, why don't I take those 2 questions? Some of that growth that we experienced in the first quarter, of course, was not repeating the software implementation issue that we had a year ago. But even in spite of that, we were up about 15%, and our guidance for the full year is low teens. So from our standpoint, that's very good significant growth. It's certainly better than what the industry averages. Capital spending in the optical arena, and it's well on track to get us to the $5 billion of sales, which is our objective by 2020. So I think, overall, we feel very good about the optical growth. In terms of the capacity expansions, I mean, the thing to remember, the power of our framework is, is that we already have a lot of capacity in Optical Communications. And so why we are adding some capacity there, it does have a negative impact in this on the short term, it's not significant, and you can -- you will see it a little bit with slightly lower gross margins as we ramp up some of the production, but it's well within our guidance of 42% to 43% for the year, so I don't think it's going to have a big significant impact.

我是 Tony，我來回答這兩個問題好嗎？我們第一季所經歷的部分成長，當然是因為沒有重演一年前遇到的軟體導入問題。但即便如此，我們仍成長了約 15%，而我們對全年給出的指引是低十位數百分比。所以就我們的角度來看，這是非常好、而且相當顯著的成長。這肯定優於產業平均。在光學領域的資本支出方面，一切都在正軌上，將帶我們達成 2020 年 50 億美元銷售額的目標。所以整體而言，我們對光學成長感到非常樂觀。至於產能擴張，要記住的一點是：我們這個架構的優勢在於，我們在光學通訊上本來就已經有相當多的產能。因此，雖然我們會在那裡增加一些產能，短期內確實會帶來一些負面影響，但並不顯著；而且你會——你會在我們拉升部分產量時，看到毛利率略微下降一些。

And then, if I could just ask a quick follow up on Verizon, I was just hoping you can confirm, to what degree the contract will increase your run-rate with the carrier, this is just the continuation of the 2017 run-rate into 2018, '19 and '20?

另外，如果我可以再追問一個關於 Verizon 的問題：我想請你確認，這份合約在多大程度上會提高你們與該電信商的常態化營收水準（run-rate）？這是否只是把 2017 年的 run-rate 延續到 2018、2019 與 2020？

Well, it's obviously a significant increase for this particular customer.

嗯，對這個特定客戶而言，這顯然是相當顯著的提升。

Our next question in queue, that will come from Steven Fox with Cross Research.

我們佇列中的下一個問題，將由 Cross Research 的 Steven Fox 提出。

Another fiber question, but maybe just stepping back, Wendell, you mentioned that your engagements for wireless, some of the service providers and there's different probability logs to what they may need, but how does that influence the enterprise customers, especially some of the large data center players that you've been dealing with more recently? Could we see similar agreements there? And in general, how would you describe just the availability of your products in the industry's products since the second half of the year, given all of this?

又是一個光纖問題，但也許先退一步看，Wendell，你提到你們在無線領域與一些服務供應商的合作，而且他們可能需要什麼會有不同的機率假設；但這會如何影響企業客戶，特別是你們最近更多接觸的一些大型資料中心業者？我們是否也可能在那裡看到類似的協議？而且整體而言，考量到這些因素，自從下半年以來，你會如何描述你們產品在產業供應中的可得性？

So I think that your observation that there is also a significant network architecture evolution going on, on the enterprise side is quite accurate, Steve. And so more to come in that space as our customers decide how open they want to be about that. For many of them, they are not subject to the same degree of public filings that the major public carriers are. So as a result, they tend to keep quite quiet, their architectures, because it is a -- they view it as a key component of competitive advantage in these very large scale data centers, and it is indeed. So, but there is significant change going on there. Once again, it is a change in the direction of our capability set. So more to come there, though we may not be able to be too public. So how do we view the demand for our product sets? We view capacity to be quite short and that's why you see the capacity expansion announcement that you have. Because of our superior cost position, we are able to economically expand our capacity, where many others are not. And so this sets up a very interesting strategic dynamic that should play itself out over the next number of years and our Optical Communications team, I think is generally on top of it, and we'll take the appropriate steps to both delight our customers and our shareholders with their sets of nodes.

所以我認為，你的觀察很準確，Steve：企業端也正在發生顯著的網路架構演進。因此，隨著客戶決定他們希望對外公開到什麼程度，這個領域後續還會有更多進展。對許多客戶而言，他們不像大型上市電信商那樣需要同等程度的公開申報。因此，他們往往相當低調地保留其架構，因為——他們把這視為在這些超大規模資料中心中的競爭優勢關鍵組成，而確實如此。所以，那邊確實正在發生重大變化。同樣地，這些變化的方向是朝向我們的能力組合有利的方向。因此後續還會有更多，但我們可能無法太公開。那我們如何看待對我們產品組合的需求？我們認為產能相當吃緊，這也是你看到我們宣布擴產的原因。由於我們具備更優越的成本位置，我們能以具經濟效益的方式擴充產能，而許多其他業者做不到。因此，這會形成一個非常有趣的策略動態，並將在未來幾年逐步展開；而我認為我們的光學通訊團隊整體上已掌握局勢，並會採取適當步驟，同時讓客戶與股東對他們的節點組合感到滿意。

And then if I could just sneak in a Gorilla Glass question. So Gorilla Glass 5, you are indicating increases as a percentage of your shipments further throughout the year. Can you give us a sense for either how that helps profitability? Or where the mix ends in the year? Just -- I know the timing is tough to call, but if we went from here to end of Calendar '17, what's the general impact of Gorilla Glass 5? And where is it in terms of your mix?

另外，如果我可以偷偷插問一個 Gorilla Glass 的問題。你們指出 Gorilla Glass 5 佔出貨量的比例在今年會持續提高。你能否讓我們了解，這對獲利能力有什麼幫助？或者今年底的產品組合（mix）會落在什麼水準？我知道時點很難判斷，但如果我們從現在看到 2017 年曆年年底，Gorilla Glass 5 的整體影響大概會是什麼？以及它在你們產品組合中的占比大概在哪裡？

I think, from an overall standpoint, the adoption of Gorilla Glass 5 has been very rapid and continue to be rapid and of course, we get a nice both price and share premium from that. It's had a positive impact on our financials for the last couple of quarters, and you expect to see that same sort of impact continue in the next couple of quarters.

我認為，從整體角度來看，Gorilla Glass 5 的採用速度非常快，而且仍將持續快速成長；當然，我們也因此獲得不錯的價格與市占溢價。在過去幾個季度，這對我們的財務表現帶來正面影響，而你也可以預期在接下來幾個季度會延續同樣類型的影響。

Our next question, that will come from Rod Hall with JPMorgan.

我們的下一個問題將由摩根大通（JPMorgan）的 Rod Hall 提出。

I just have a couple, I guess. I wanted to start with optical. The seasonality there was a little bit different than we anticipated, so the Q2 guide is a little below than what we were expecting, but then Q1 was better. So I wonder if you guys could comment on the seasonal movement there between Q1 and Q2? And also just comment on whether you're supply-constrained or you're capacity-constrained there in Q2? And then second, I wanted to ask about specialty, to what extent does this strong guidance in Q2 include unannounced products? Or are you just guiding for what you already know? And then, the third question is on display, so you commented, I think, Tony, you said positive pricing is even possible. I mean by when would we potentially see that? Is that possible this year, you think? Or when might pricing actually move to the positives, as incredible as that might sound?

我想我有幾個問題。我想先從光學（optical）開始。那邊的季節性跟我們預期有點不同，所以第二季的指引比我們原先預期略低，但第一季反而更好。所以我想請你們評論一下第一季與第二季之間的季節性變化？另外也請談談你們在第二季是否受到供應限制或產能限制？第二個問題我想問特種材料（specialty），第二季這麼強的指引在多大程度上包含尚未公布的產品？還是你們只是針對目前已知的部分給出指引？第三個問題是顯示（display），你們提到——我想 Tony，你說甚至有可能出現正向定價。我的意思是，我們可能在什麼時候看到那種情況？你認為今年有可能嗎？或者定價何時可能真正轉為正向——雖然聽起來很不可思議？

Yes, I think that the comment that I made there was in respect to the people are going to be reinvesting in capacity. One of the challenges is are the returns that are required from those reinvestments and so that if you're going to see the necessity of reinvesting capacity, either price declines have to continue to moderate or maybe even go positive, but that wasn't a comment about this year. Relative to this year, we think pricing will be down about 10% or it could be a little bit better than that. Back to Optical Communications, Rod you have to remember these are big civil works projects that are hard to predict in any given quarter. We don't see anything unusual out there. We think for the full year, we'll be up in the low-teens, and are guiding our actuals in Q1 and our guidance in Q2 reflects that from the full year standpoint. So we don't think there's anything to read into that. And then relative to Specialty Materials. I mean...

是的，我剛才的評論是針對大家將會重新投資產能這件事。其中一個挑戰在於，這些再投資所要求的報酬率；因此如果你會看到必須再投資產能的必要性，要嘛價格下跌必須持續趨緩，甚至可能轉為正向，但那並不是在評論今年。就今年而言，我們認為定價大約會下滑 10%，或可能比這個情況稍微好一些。回到光學通訊（Optical Communications），Rod，你必須記得這些是大型土木工程專案，在任何單一季度都很難預測。我們沒有看到任何不尋常的情況。我們認為全年將有低十位數（low-teens）的成長，而我們第一季的實際表現與第二季的指引，從全年角度來看也反映了這一點。所以我們不認為這裡有什麼需要過度解讀的。至於特種材料（Specialty Materials）。我的意思是……

We're not going to answer that question, Rod. But thank you for that valiant attempt.

我們不會回答那個問題，Rod。不過謝謝你這次英勇的嘗試。

On optical, Tony, could you just confirm you're not -- so you're not capacity constrained, it's just the flow of projects and project orient nature of the...

關於光學，Tony，你能否確認一下——所以你們不是——你們不是受到產能限制，主要只是專案的流動與專案導向的特性……？

No I think, what Wendell said to the earlier question, things are very tight in Optical Communications right now.

不，我想，正如 Wendell 對先前問題所說的，光學通訊目前非常吃緊。

If we had more, we could sell more. If that answers your question.

如果我們有更多產能，我們就能賣出更多。如果這能回答你的問題的話。

Our next question in queue, that will come from Patrick Newton with Stifel.

我們隊列中的下一個問題將由 Stifel 的 Patrick Newton 提出。

Wendell and Tony, another optical question. The announcements that provided a max fiber output and minimum revenue opportunity, if you use those min and max variables you can calculate an ASP per kilometer of about 1,750, which seems very low. So I was wondering if you could help us understand the average ASP of fiber per kilometer on bulk purchases? And then thinking about the max 60 million kilometers shipment, can you help us understand what the revenue upside could be? It would seem that you have the potential to may be max out at least 60% higher from the announced 1.05 billion level?

Wendell 和 Tony，再一個光學問題。你們的公告提供了最大光纖產出與最低營收機會；如果用那些最小與最大變數去計算，可以得到每公里約 1,750 的 ASP（平均售價），看起來非常低。所以我想請你們協助我們理解，大宗採購時光纖每公里的平均 ASP 大概是多少？另外，考量到最高 6,000 萬公里的出貨量，你們能否協助我們理解營收上行空間可能是多少？看起來你們的潛在上限可能至少比公告的 10.5 億美元水準高出 60%？

So the way to think about that agreement is that the reason you see 2 very different numbers, that is because they're different numbers. You can't take the revenue and divide it into the fiber volume. What our agreement with Verizon encompasses at the minimum level, includes the full suite of our Optical Communications product set, in all our capabilities. Included in the agreement is the ability for Verizon to call on us for just pure fiber up to 20 million kilometers. The actual timing and the actual play of which of our products gets deployed in what order and what manner, is still to be fully determined. And because of the very close relationship, we are able -- and our broad capability set, we are able to offer our customers, is the ability for them to know they can get the most critical componentry but still fulfill their obligations to us across their entire purchase set. So I think, to read in Part B of your question, is that if indeed there is that much fiber deployed, that, that would represent a very significant revenue of potential -- for this customer alone, let alone to others. I think that observation is analytically correct.

所以看待那份協議的方式是：你之所以會看到兩個非常不同的數字，是因為它們本來就是不同的數字。你不能把營收直接除以光纖量。我們與 Verizon 的協議在最低承諾水準下，涵蓋我們光學通訊產品組合的完整套件，以及我們所有能力。協議也包含 Verizon 可向我們要求、僅就純光纖（pure fiber）部分，最高達 2,000 萬公里的權利。至於實際時程，以及我們哪些產品會以何種順序、何種方式部署，目前仍有待完全確定。而由於我們非常緊密的合作關係，以及我們廣泛的能力組合，我們能提供客戶的是：讓他們知道他們可以取得最關鍵的元件，同時仍能在其整體採購組合上履行對我們的承諾。所以我想，就你問題的 B 部分來解讀，如果確實部署了那麼多光纖，那將代表非常可觀的潛在營收——光是這位客戶就如此，更不用說其他客戶。我認為這個觀察在分析上是正確的。

I guess for Tony on Gorilla Glass, could you just comment whether Gorilla Glass's growth rate was above or below the reported 22% year-over-year Specialty Materials growth? And you did to an earlier question on the contribution of Gorilla Glass 5 currently, didn't really give us many details, could you help us just ballpark a generic range of where that sits as a percentage of total Gorilla Glass currently?

我想請 Tony 談談 Gorilla Glass：你能否評論 Gorilla Glass 的成長率是高於還是低於特種材料年增 22% 的成長？另外，你先前回答 Gorilla Glass 5 目前的貢獻時，沒有提供太多細節；你能否協助我們粗略估算一下，Gorilla Glass 5 目前約占整體 Gorilla Glass 的百分比大概落在哪個區間？

Yes, so the -- first answer your question is I think Specialty Materials was actually up 32% year-over-year. And Gorilla Glass was the primary contributor to that. And then in terms of the adoption rate, it's been very significant. It's been better than what we've seen in other versions of Gorilla Glass that we've introduced and we feel really good about it.

好的，先回答你的問題——我認為特種材料其實是年增 32%。而 Gorilla Glass 是主要的貢獻來源。至於採用率，確實非常顯著。它比我們過去推出其他版本 Gorilla Glass 時看到的表現更好，我們對此感到非常樂觀。

Next question will come from Vijay Bhagavath with Deutsche Bank.

下一個問題將由德意志銀行（Deutsche Bank）的 Vijay Bhagavath 提出。

Question I get asked a lot from the investors is on the competitive dynamics in optical. Help us understand who do you run into primarily in fiber cable and for the fiber itself here in the U.S. and would the competition change by end-market for example, do you run into different set of players in fiber-to-the-home versus cloud data center on and on. And then also overseas, do you run into different sets of players in Europe and APAC versus here in the U.S.?

投資人常常問我的一個問題是光學領域的競爭態勢。請協助我們理解：在美國這裡，無論是光纖電纜（fiber cable）還是光纖本身（fiber itself），你們主要會遇到哪些競爭對手？競爭情況是否會因終端市場而改變——例如在 FTTH（光纖到府）與雲端資料中心等領域，你們會遇到不同的一組玩家嗎？另外在海外方面，你們在歐洲與亞太（APAC）遇到的玩家，是否也與美國這裡不同？

So excellent question. So let's take the most macro first. So I think, what makes it challenging for you to describe our Optical Communications as if they are like this company, that they are like that company, is that our particular set of capabilities and global footprint is unique in the world. We are the only player who makes every component within a passive optical system, and that therefore, has the ability to cross-innovate and co-innovate across the platform to create these very advantaged systems and then we play that out differently in our segments, public network wireline, public network wireless, all of the various forms of data centers, from small enterprise all the way up to hyperscale data centers. So very unique and in each of these segments, we have a different set of players who are strong or weak. And then on top of that, with a global footprint where we are also the only one who spins the globe and therefore, in these different regions, we will face different competitors of different strengths and different products. I think, perhaps the best way to answer this question would be, if you were to follow up with Ann subsequent to this, we sort of -- we would provide sort of a list for you to think about, depending on which dimension you are most interested in. Would that be helpful, Vijay?

所以這是個非常好的問題。我們先從最宏觀的層面談起。我認為，讓你很難把我們的光學通訊描述成「像這家公司」或「像那家公司」的原因在於，我們這一套特定能力組合與全球佈局在世界上是獨一無二的。我們是唯一一家能在被動式光學系統內製造每一個元件的業者，因此能夠在平台上進行跨領域創新與共同創新，打造出這些極具優勢的系統；接著我們會在不同的細分市場以不同方式展開，包括公用網路有線、公用網路無線，以及各種型態的資料中心，從小型企業一路到超大型（hyperscale）資料中心。因此非常獨特，而且在每個細分市場中，我們面對的競爭者強弱各不相同。此外，我們擁有全球佈局，也是唯一一家真正「繞行全球」的業者，因此在不同地區會遇到不同的競爭對手，其強項與產品也各不相同。我想，回答這個問題或許最好的方式是：你可以在會後再跟 Ann 追問，我們會依你最關心的面向，提供一份清單讓你參考與思考。這樣對你有幫助嗎，Vijay？

I think certainly, it would be very helpful. And then quickly, fiber to cell towers, Wendell, do you see that as a bigger opportunity versus fiber-to-the-home with over 90% of cell towers currently running on copper?

我想當然會非常有幫助。另外快速問一下，Wendell，關於把光纖拉到基地台（fiber to cell towers），在目前超過 90% 的基地台仍使用銅纜的情況下，你認為這會是比光纖到府（fiber-to-the-home）更大的機會嗎？

So if indeed the description of the next technological node in wireless is as Verizon just described it to the world, then it is a very, very large opportunity. It still remains to be seen, how that particular technology node will be adjudicated over time. We are deeply engaged on this topic, have been for a long time, and we'll try to put ourselves in a position where we feel comfortable with some public statements perhaps a little later on this year, to help you begin to think about this the way we think about it as technologist first, what's right for our customer, and that will give you some ability to think through different demand futures.

如果無線的下一個技術節點確實如 Verizon 對外所描述的那樣，那將是一個非常、非常大的機會。不過，這個特定技術節點最終會如何隨時間被驗證與定案，仍有待觀察。我們在這個議題上投入很深、也已經投入很久；我們會努力讓自己處於一個合適的位置，或許在今年稍晚能更有把握地做一些公開說明，幫助你開始用我們的方式來思考：我們首先以技術人員的角度出發，什麼對客戶是正確的；這也會讓你更有能力去推演不同的需求情境。

Next question will come from Wamsi Mohan with Bank of America Merrill Lynch.

下一個問題來自美國銀行美林（Bank of America Merrill Lynch）的 Wamsi Mohan。

Tony, I was wondering if you could give us an update on any additional hedges, given the volatility in the yen and any changes to the hedge levels you have alluded to previously through the next 5 years or proportion of LCD glass volume that's now hedged incrementally, since the last time you gave us an update and then I have a follow-up.

Tony，我想請你更新一下：鑑於日圓波動，你們是否新增了任何額外的避險？以及你們先前提到的未來 5 年避險水位是否有任何變動？或者自上次更新以來，目前被增量避險的 LCD 玻璃出貨量占比是否有所提高？我後面還有一個追問。

There hasn't been any changes in our hedging levels since the last update. We are still about 70% hedged from '16 through 2022. You're right, there has been some volatility, and we continue to monitor that. And think about what we -- if we want to add anything on to that, but basically we're in the same place we were before, Wamsi.

自上次更新以來，我們的避險水位沒有任何變動。我們仍然在 2016 年到 2022 年期間約有 70% 的部位已避險。你說得對，確實出現了一些波動，我們也持續在監控。並思考是否要在此基礎上再加做一些避險，但基本上我們仍維持在先前的狀態，Wamsi。

And then just as a follow-up on LCD glass pricing, you guys sound very optimistic around Q2. When you think about supply coming on over the next few years, including your expansion in China, do you think there's a reasonable probability of glass pricing declines continuing to improve? And is there an element of a mix shift between the amount of Eagle XG versus Lotus versus Willow and other formulations of glass that you are shipping? Or is this all supply/demand driven?

接著追問 LCD 玻璃定價：你們對第二季聽起來非常樂觀。當你們考量未來幾年供給的增加（包括你們在中國的擴產）時，你們是否認為玻璃價格下跌的趨勢有合理機率會持續改善（也就是跌幅進一步收斂）？另外，是否存在產品組合轉移的因素，例如你們出貨的 Eagle XG、Lotus、Willow 及其他玻璃配方之間的占比變化？還是這完全由供需所驅動？

Currently it is mixed shift to other new glasses, although the vast majority is the traditional LCD glass. And I think, the reason that we are believing in the pricing environment today and what we expect to see on a going forward basis goes back to the 3 things that I talked about in the call. First, our -- the current view is that glass supply is tight. We matched our supply with demand and if something were to change, we would change our capacity by reapplying [ things ] to other applications or by idling [ things ]. And then secondly, we've got the competitors that continue to face profitability challenges at their current pricing, and we think they'll continue to -- their price declines will slow further as they remain -- as they continue to try to remain profitable. And then, the comment about any other capacity adds that might be made in order for that to be economically justified, pricing either needs to flatten or even increase. So when we think about it on those 3 dimensions, that's why we feel the pricing environment in 2017 will be about that 10% on a year-over-year basis, if not, better.

目前確實有一部分是轉向其他新型玻璃的組合變化，儘管絕大多數仍是傳統的 LCD 玻璃。而我們之所以對當前的定價環境以及未來走勢有信心，回到我在電話會議中提到的三點。第一，我們目前的看法是玻璃供給偏緊。我們讓供給與需求相匹配；如果情況有變，我們會透過把[產能/設備]重新配置到其他應用，或讓[產能/設備]停線來調整產能。第二，我們的競爭對手在目前的價格水準下仍面臨獲利挑戰，我們認為他們為了維持獲利，價格下跌的速度會進一步放緩。第三，關於任何可能新增的產能，要在經濟上合理，價格要嘛需要趨於持平，甚至需要上漲。因此，從這三個面向來看，這就是為什麼我們認為 2017 年的定價環境年增率大約會是 10% 左右，甚至可能更好。

I think, Tony has nailed it very accurately here. But let's take this period of time and before we try to look out 2 years from now, 3 years from now, we are feeling good about the current dynamics. Let's see how those dynamics evolve throughout this year, and then we'll be able to give you a thoughtful response on what happens next, is that okay?

我認為 Tony 在這裡講得非常精準。不過在我們嘗試去看兩年後、三年後之前，先就當下這段期間而言，我們對目前的動態感到樂觀。讓我們看看這些動態在今年之內如何演變，之後我們就能更周全地回覆接下來會發生什麼，可以嗎？

Yes, I appreciate that.

可以，謝謝，我很感激。

The next question in queue, that will come from Doug Clark with Goldman Sachs.

隊列中的下一個問題來自高盛（Goldman Sachs）的 Doug Clark。

First one, on the glass business. Can you talk a little bit about any incremental changes in demand trends from the TV side for the traditional glass business? And worth a try here, but can you narrow down or at least give a little bit of quantitative guidance for what you expect, especially materials segment to be for the full year 2017 in terms of growth rates?

第一個，關於玻璃業務。你能否談談來自電視端、對傳統玻璃業務的需求趨勢是否有任何增量變化？另外也想試著問一下，你能否縮小範圍，或至少提供一些量化指引，說明你們對 2017 全年、特別是材料事業部（materials segment）在成長率方面的預期？

Sure. On the overall glass demand, we don't really see any change in what we had originally talked about, back in January. We think TVs themselves could be flat to maybe up 1%. The growth again is going to be driven by the TV size, greater than 1.5 inches. From an overall glass market standpoint, that should be in the 4% to 6% range and our volume would be in that same range in the mid-single digits. So really, no change. Doug, the thing that always keeps in mind is that there's only been 1 quarter and only a couple of months' worth of data, and what really drives a lot of this happens in the back half of the year. So our outlook is essentially the same. In terms of Specialty Materials, I mean, I think, it's important to understand that we firmly know that we're going to grow or believe we're going to grow on a year-over-year basis. And we got a lot of great innovations, such as Gorilla Glass 5. And how much that growth is going to be dependent on the adoption of those innovations and we feel good about what happened in Q1. That was a very significant growth. We think Q2 growth is going to be in the high-teens. And we just need to see how those innovations continue to roll out and be adopted, keeping in mind the supply chain there, always takes products in advance and product launches. And so it's hard to just take 1 quarter and draw a big conclusion from it. We obviously feel great about where we are in Specialty Materials.

當然。就整體玻璃需求而言，我們並沒有看到與我們在一月最初談到的內容有任何變化。我們認為電視本身的出貨可能持平，或最多成長 1%。成長仍將由電視尺寸帶動，也就是尺寸增加（大於 1.5 吋）。從整體玻璃市場的角度來看，應該會落在 4% 到 6% 的區間，而我們的出貨量也會在相同區間，約為中個位數成長。所以基本上沒有變化。Doug，需要一直記在心上的是：目前只過了一個季度，也只有幾個月的數據，而真正驅動很多變化的事情通常發生在下半年。因此我們的展望本質上維持不變。至於特殊材料（Specialty Materials），我認為重要的是要理解：我們很有把握會、或至少相信會在年對年基礎上成長。我們也有很多很棒的創新，例如 Gorilla Glass 5。成長幅度將取決於這些創新的採用情況，而我們對第一季的表現感到樂觀。那是非常顯著的成長。我們認為第二季的成長會落在高十位數（high-teens）。接下來我們需要觀察這些創新如何持續推出並被採用，同時也要記得供應鏈通常會在產品上市前提前備貨。因此很難只用一個季度就下很大的結論。我們對特殊材料目前的狀況顯然感到非常好。

Okay, got it. That make sense. Then I have a quick follow-up on optical as well, kind of a two-part question. First, can you give us any detail on who that 10% customer is in that segment already? And then secondly, I know you're more indexed to North America generally, but can you talk about kind of near-term trends going on in China, to the extent that there's any type of pause or softness?

好的，了解。這很有道理。那我也想就光學業務再追問一下，算是兩個部分的問題。第一，能否提供一些細節，該細分領域中那位占比 10% 的客戶是誰？第二，我知道你們整體上更偏重北美，但能否談談中國近期的趨勢；如果有任何暫停或需求轉弱的情況，能否說明一下？

In terms of the 10% customer, we're not going to disclose that.

關於那位占比 10% 的客戶，我們不會披露。

And on China, it has been relatively wildly reported concerns about a slowdown in China for many of the players there. We still find demand for our product to outpace our ability to serve our Chinese customers.

至於中國，市場上已相當廣泛地報導，許多當地業者對中國放緩有所擔憂。我們仍然發現，對我們產品的需求持續超過我們服務中國客戶的能力。

We've got time for one quick question.

我們還有時間再問一個簡短的問題。

That will come from Tejas Venkatesh with UBS.

接下來是來自瑞銀（UBS）的 Tejas Venkatesh。

Quick one, any update on when you expect to see revenue from Gorilla Glass for automotive? You mentioned traction with the interiors of cars? Are design cycles there any different there from the exterior?

簡短一問：你們預期何時會看到汽車用 Gorilla Glass 的營收？你們提到在車內飾方面已有進展。那裡的設計週期與車外部應用相比是否有所不同？

So with regards to auto, we'll start seeing revenues quickly, already have some. Right? So the real question isn't "Will we penetrate that market?" That has happened. The real question is, "How big does it get?" And I don't think we'll have deep insight on that until we get a little further through the relatively long design platform time cycles of the car companies. But there is no question that both our exterior product as well as our interior product is getting very strong pull. The question, the front of the house is, does it primarily penetrate in the premium segment or does this become an everyday vehicle type of product? We don't have a new deep insight on that question yet, that can sort of only be adjudicated by actual decisions by customers, that they then in turn become public about. But we are not only -- the reason we're so highly confident about revenues is, we're getting them.

關於汽車業務，我們很快就會開始看到營收，其實已經有一些了。對吧？所以真正的問題不是「我們會不會打入那個市場？」——這已經發生了。真正的問題是「規模會有多大？」我認為在我們再往前推進一些、並更深入走過車廠相對較長的設計平台週期之前，我們不會對此有很深的洞見。但毫無疑問的是，我們的外部產品以及內部產品都獲得非常強勁的拉動需求。問題在於，前端市場主要會先在高階車款滲透，還是會成為一般日常車款也會採用的產品？我們目前對這個問題還沒有新的、很深入的洞見；這只能由客戶的實際決策來裁定，而他們之後也會對外公開。但我們之所以對營收非常有信心，不僅僅是因為——我們正在取得營收。

And just one housekeeping item is to keep in mind that revenues for Gorilla Glass 5 might show up in what we call our other segment, not in the Specialty Materials segment.

另外提醒一個作業性事項：Gorilla Glass 5 的營收可能會出現在我們所稱的「其他」部門，而不是在「特殊材料」部門。

Thanks. Wendell, some closing comments?

謝謝。Wendell，有沒有結語？

Thank you to everyone for joining us today. As we've said, we are very pleased with our continued positive momentum. We remain on track to deliver our 2017 objectives and the overall goals of our Strategy and Capital Allocation Framework. We really look forward to talking with all of you in June at our Investor Day. When we'll have the opportunity to give you a more in-depth update on our progress against the framework, including a more detailed look at all of our market access platforms. I do hope you'll take the opportunity to join us in person, so that you'll get the chance to interact with leadership and enjoy our always terrific interactive exhibits. Thank you.

感謝各位今天加入我們。如同我們所說，我們對持續的正向動能感到非常滿意。我們仍按計畫推進，以達成 2017 年的目標，以及我們策略與資本配置框架的整體目標。我們非常期待在六月的投資人日與各位交流。屆時我們將有機會就我們在該框架下的進展提供更深入的更新，包括更詳細地檢視我們所有的市場進入平台。我也希望各位把握機會親自出席，這樣你們就能與管理團隊互動，並欣賞我們一向精彩的互動式展示。謝謝。

Thanks, Wendell. Thank you all for joining us today. Before we close, I wanted to let everyone know that our Annual Shareholder Meeting is this Thursday, find details in our proxy statements. Looking out to next month, Tony and I will be meeting with investors at the Bernstein Conference on June 1. Our Investor Day that Wendell mentioned is scheduled for Friday, June 16 in New York City and the registration link is live on our website.

謝謝你，Wendell。也謝謝各位今天加入我們。在結束之前，我想讓大家知道，我們的年度股東大會在本週四舉行，詳情請見我們的委託書說明書（proxy statements）。展望下個月，Tony 和我將於 6 月 1 日在伯恩斯坦（Bernstein）研討會與投資人會面。Wendell 提到的投資人日預定於 6 月 16 日（週五）在紐約市舉行，報名連結已在我們網站上線。

Finally, the replay of today's call will be available on our site for one year, starting later this morning. There's also a telephone replay available for the next 2 weeks, and details are in today's news release. Once again, thanks for joining us. Tony, that concludes our call. Please disconnect all lines.

最後，今天電話會議的重播將自今天稍晚起在我們網站提供，為期一年。另外也提供電話重播，為期接下來兩週，詳情請見今天的新聞稿。再次感謝各位參與。Tony，我們的電話會議到此結束。請斷開所有線路。

And ladies and gentlemen, that does conclude your conference call for today. We do thank you for your participation and for using AT&T's Executive Teleconference. You may now disconnect.

各位女士、先生，今天的電話會議到此結束。我們感謝各位的參與，並感謝使用 AT&T 的高階電話會議服務（Executive Teleconference）。您現在可以掛線。