康寧 (GLW) 2024 Q2 法說會逐字稿

Welcome to the Corning Incorporated quarter two 2024 earnings call. (Operator Instructions)

歡迎參加康寧公司 2024 年第二季財報電話會議。 （操作員說明）

It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

我很高興向您介紹投資者關係副總裁安·尼科爾森 (Ann Nicholson)。

Thank you, and good morning, everybody. Welcome to Corning's second quarter 2024 earnings call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; and Ed Schlesinger, Executive Vice President and Chief Financial Officer.

謝謝大家，大家早安。歡迎參加康寧 2024 年第二季財報電話會議。今天與我在一起的有董事長兼執行長 Wendell Weeks；執行副總裁兼財務長 Ed Schlesinger。

I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we'll be discussing our consolidated results using core performance measures, unless we specifically indicate our comments relate to GAAP data.

我想提醒您，今天的言論包含符合 1995 年私人證券訴訟改革法案含義的前瞻性陳述。這些因素在公司的財務報告中有詳細說明。您還應該注意，除非我們特別指出與 GAAP 數據相關的評論，否則我們將使用核心績效指標來討論我們的綜合結果。

Our core performance measures are non-GAAP measures used by management to analyze the business. For the second quarter, the difference between GAAP and core EPS, primarily reflected constant currency adjustments, translated earnings contract gains and translation gains on Japanese yen-denominated debt as well as restructuring and primarily non-cash asset write-off charges.

我們的核心績效衡量標準是管理階層用來分析業務的非公認會計準則衡量標準。第二季度，公認會計原則與核心每股收益之間的差異主要反映了恆定匯率調整、折算收益合約收益和以日圓計價的債務的折算收益以及重組和主要非現金資產沖銷費用。

As a reminder, GAAP mark-to-market accounting has no impact on our cash flow. A reconciliation of core results to the comparable GAAP value can be found in the Investor Relations section of our website at corning.com. You may also access core results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live on our webcast. We encourage you to follow along. We are also available on our website for downloading.

提醒一下，GAAP 以市值計價會計對我們的現金流量沒有影響。您可以在我們網站 corning.com 的投資者關係部分找到核心績效與可比較 GAAP 值的調節表。您也可以在我們的網站上存取核心結果，並在互動式分析師中心下載財務資料。支援幻燈片正在我們的網路廣播中直播。我們鼓勵您繼續關注。我們也可以在我們的網站上下載。

And now I'll turn the call over to Wendell.

現在我將把電話轉給溫德爾。

Thank you, Ann, and good morning, everyone. Today, we announced strong second quarter 2024 results. We returned to year-over-year growth, and we exceeded the sales and EPS guidance we shared going into the quarter in April. The outperformance was driven primarily by the strong adoption of our new optical connectivity products for generative AI. So why don't we start today with a quick explanation of why this application provides a great growth opportunity for our shareholders.

謝謝你，安，大家早安。今天，我們宣布了 2024 年第二季的強勁業績。我們恢復了同比增長，並且超過了 4 月份該季度分享的銷售額和每股收益指引。績效優異的主要原因是我們針對產生人工智慧的新型光連結產品的大力採用。那麼，我們今天為什麼不先快速解釋為什麼該應用程式為我們的股東提供了巨大的成長機會。

Our traditional data centers contain a network of interconnected switches and CPUs. GenAI requires a second network within data centers to connect every GPU to every other GPU in the cluster, creating a neural network. Now because GPUs have more processing capacity than CPUs, they need higher bandwidth links connecting them. The result is about 10 times the number of fiber connections in this new network versus a traditional data center.

我們的傳統資料中心包含互連交換器和 CPU 的網路。 GenAI 需要資料中心內的第二個網路將每個 GPU 連接到叢集中的每個其他 GPU，從而創建一個神經網路。現在，由於 GPU 比 CPU 具有更多的處理能力，因此需要更高的頻寬連結來連接它們。與傳統資料中心相比，此新網路中的光纖連線數量約為 10 倍。

Now this not only provides volume, which is great, but also the opportunity to innovate with the major players in this space. So, over the past four years, we've helped key customers design the optical links needed for this second network in their next-generation AI data centers. We invented new to the world, fibers, cables, connectors, and custom integrated solutions.

現在，這不僅提供了巨大的數量，而且還提供了與該領域主要參與者進行創新的機會。因此，在過去四年中，我們幫助主要客戶設計了下一代人工智慧資料中心第二個網路所需的光學鏈路。我們為世界發明了新的光纖、電纜、連接器和客製化整合解決方案。

These new products dramatically reduce installation time and on-site labor, save space and lower embodied carbon. All while reducing installed cost and increasing the overall reliability of the network. As I noted, strong adoption of these GenAI products primarily drove our outperformance in the second quarter. In fact, it drove record sales in the enterprise portion of our optical business. which grew more than 40% year-over-year.

這些新產品大大減少了安裝時間和現場勞動力，節省了空間並降低了碳排放。同時降低安裝成本並提高網路的整體可靠性。正如我所指出的，這些 GenAI 產品的大力採用主要推動了我們第二季的優異表現。事實上，它推動了我們光學業務企業部分的創紀錄銷售。年成長超過40%。

I've been talking about the GenAI opportunity inside the data center. GenAI also increases bandwidth requirements between data centers. We've reached an agreement with Lumen Technologies that reserves 10% of our global fiber capacity for each of the next two years to facilitate Lumen's build of a new network to interconnect AI-enabled data centers

我一直在談論資料中心內部的 GenAI 機會。 GenAI 也增加了資料中心之間的頻寬要求。我們與 Lumen Technologies 達成協議，未來兩年每年預留全球 10% 的光纖容量，以促進 Lumen 建置新網路以互連人工智慧資料中心

This will be the first outside plant deployment of Corning's new GenAI fiber and cable system that will enable Lumen to fit anywhere from 2 times to 4 times the amount of fiber into their existing conduit.

這將是康寧全新 GenAI 光纖和光纜系統的首次外部工廠部署，使 Lumen 能夠在現有管道中安裝 2 倍到 4 倍數量的光纖。

Now, GenAI is just one of the many growth opportunities we've included in the plan we call Springboard, which adds more than $3 billion in annualized sales with strong incremental profit and cash flow within the next three years.

現在，GenAI 只是我們稱為 Springboard 的計劃中包含的眾多成長機會之一，該計劃的年銷售額將增加超過 30 億美元，並在未來三年內實現強勁的利潤和現金流增量。

We've been sharing some of the key points on Springboard for the last few quarters. But today, I want to outline our plan in a more comprehensive way. We've built a tremendous opportunity for our shareholders, and we want to help you understand how we think about Springboard.

過去幾季我們一直在分享 Springboard 上的一些要點。但今天，我想更全面地概述我們的計劃。我們為股東創造了巨大的機會，我們希望幫助您了解我們對 Springboard 的看法。

Let's start with the core components. First, we previously shared with you that the first quarter would be the low quarter for the year and as our results show, we began our ,arch up. Sales grew 11% sequentially to $3.6 billion in the second quarter, and we returned to year-over-year growth. And the third quarter guidance we provided in our release this morning shows that we expect to continue growing in the third quarter with sales of approximately $3.7 billion.

讓我們從核心組件開始。首先，我們之前與您分享過，第一季將是今年的最低季度，正如我們的結果所示，我們開始了上漲。第二季銷售額較上季成長 11%，達到 36 億美元，我們恢復了年成長。我們今天早上發布的第三季指引顯示，我們預計第三季銷售額將繼續成長，銷售額約為 37 億美元。

Second, we expect to add more than $3 billion in annualized sales within the next three years as cyclical factors and secular trends converge and drive demand for our capabilities. Our market positions are strong, and we're seeing encouraging signs of markets improving. And we continue to innovate new product sets tied to secular trends to drive growth above market levels.

其次，隨著週期性因素和長期趨勢的整合並推動對我們能力的需求，我們預計未來三年內年銷售額將增加超過 30 億美元。我們的市場地位穩固，我們看到市場改善的令人鼓舞的跡象。我們持續創新與長期趨勢相關的新產品組合，以推動高於市場水平的成長。

Third, as we capture this growth, we expect to deliver powerful incremental profit and cash flow. We have the required capacity and technical capabilities in place to service that $3 billion in the three-year window, and the cost and capital are already reflected in our financials.

第三，當我們抓住這一成長機會時，我們預計將帶來強勁的利潤和現金流增量。我們擁有在三年內為這 30 億美元提供服務所需的能力和技術能力，而成本和資本已經反映在我們的財務中。

Our second quarter results and third quarter guidance serve as a strong proof point of our powerful incrementals. We grew EPS 24% sequentially, more than double our sales growth rate. And as you can see in our guidance, we expect EPS to grow about 3 times faster than sales in the third quarter. Gross margin improved sequentially and year-over-year by 110 basis points and 170 basis points, respectively. Operating margin expanded 190 basis points versus quarter one.

我們第二季的業績和第三季的指導是我們強大增量的有力證明。我們的每股盈餘環比成長了 24%，是銷售額成長率的兩倍多。正如您在我們的指導下看到的那樣，我們預計第三季每股收益的成長速度將是銷售額的三倍左右。毛利率較上月和年比分別提高 110 個基點和 170 個基點。營業利益率較第一季擴大 190 個基點。

We also generated strong free cash flow and with the success of Springboard, we expect to be able to accelerate the return of cash to shareholders. In fact, due our growing confidence in the plan, we began buying back shares in the second quarter and will do so in the third quarter.

我們也產生了強勁的自由現金流，隨著 Springboard 的成功，我們預計能夠加速向股東返還現金。事實上，由於我們對該計劃的信心不斷增強，我們在第二季開始回購股票，並將在第三季這樣做。

So I'd just walk through the core components of Springboard. Now I want to provide more context on our sales opportunity because this is an extraordinary time for the company. I've had a chance to talk with many of you recently, and you've probably heard me say, material science is really slow until it gets wicked fast.

因此，我將簡單介紹一下 Springboard 的核心元件。現在我想提供更多有關我們銷售機會的背景信息，因為這對公司來說是一個非凡的時刻。最近我有機會與你們中的許多人交談，你們可能聽過我說，材料科學真的很慢，直到它變得很快。

You hit these moments of inflection. For example, I just noted, our new product suite for GenAI. To do all that, we had a dedicated team that I've been part of for the last four years, capitalizing on our deep insight and customer relationships to develop these products long before they become a seemingly overnight success. Some strategies take even longer to come to fruition. Meaningful innovation takes time. And then you hit these critical milestones, and everything starts happening in quick succession.

你遇到了這些轉折時刻。例如，我剛才提到了我們的 GenAI 新產品套件。為了做到這一切，我們有一個專門的團隊，我在過去四年中一直是其中的一員，利用我們深刻的洞察力和客戶關係來開發這些產品，早在它們看似一夜成名之前。有些策略需要更長的時間才能取得成果。有意義的創新需要時間。然後你達到了這些關鍵的里程碑，一切都開始快速連續發生。

We are one of these moments. Over the next several quarters, we expect to share a number of customer announcements. You'll see more commercialized innovations and a steady march up in our quarterly performance. So I want to give you a structure to help you put those coming milestones into the context of our total Springboard plan as they happen.

我們就是這些時刻之一。在接下來的幾個季度中，我們預計將分享一些客戶公告。您將看到更多商業化的創新以及我們季度業績的穩定提升。因此，我想為您提供一個結構，幫助您將即將到來的里程碑納入我們整體跳板計畫的背景中。

I'm going to use this chart to explain our incremental sales opportunity. We introduced Springboard in quarter three last year using our quarter four projected sales of $3.25 billion as the starting point, which put us at a $13 billion annualized run rate. The Y-axis represents incremental sales above our quarter four 2023 run rate. And the X-axis simply represents time for the following five years.

我將使用此圖表來解釋我們的增量銷售機會。我們在去年第三季推出了 Springboard，以第四季預計銷售額 32.5 億美元為起點，這使我們的年化運行率為 130 億美元。 Y 軸代表高於 2023 年第四季運轉率的增量銷售額。 X軸簡單地代表了接下來五年的時間。

Now let's fill in some numbers. Here is our internal non-risk adjusted plan. Now there is a lot to take away from this slide. The first is we have a significant sales opportunity. We're looking at potential growth of $8 billion in annualized sales run rate by the end of 2028, with $5 billion by the end of 2026. We expect growth across all our market access platforms, driven by a combination of upward cyclical and secular trends, and we'll provide insight behind the springs or drivers of that growth.

現在讓我們填寫一些數字。這是我們的內部非風險調整計劃。現在可以從這張投影片中得到很多資訊。首先是我們有一個重要的銷售機會。我們預計到2028 年底，年化銷售成長率將成長80 億美元，到2026 年底將成長50 億美元。實現成長，我們將提供這種成長背後的動力或驅動因素的見解。

Now this is our internal plan. When we say it's not risk adjusted, what mean is that the projections are based on a number of assumptions, including markets recovering back to historical trend lines with continued growth thereafter, successful adoption of new innovations across a number of markets and platforms and successful execution of all our operational milestones for productivity and for price.

現在這是我們的內部計劃。當我們說它沒有進行風險調整時，意味著預測是基於許多假設，包括市場恢復到歷史趨勢線並隨後持續增長、在多個市場和平台上成功採用新創新以及成功執行我們在生產力和價格方面的所有營運里程碑。

That said, we've taken this opportunity and translated it into a high confidence plan to help inform investors. To do that first, we focused on the next three years. Second, we probabilistically adjusted for different potential outcomes in each of our market access platforms, including market dynamics, timing of secular trends, successful adoption of our innovations as well as volume, pricing, and market share across all our businesses and the potential that some of our markets may go through down cycles. And this is how we come to the high confidence Springboard plan for our shareholders to help inform their investment decisions.

也就是說，我們抓住了這個機會，並將其轉化為一個高度可信的計劃，以幫助投資者了解情況。首先，我們將重點放在未來三年。其次，我們對每個市場准入平台的不同潛在結果進行了機率調整，包括市場動態、長期趨勢的時機、我們創新的成功採用以及我們所有業務的數量、定價和市場份額，以及某些業務的潛力。這就是我們為股東制定高度可信的 Springboard 計畫的方式，以幫助他們做出投資決策。

It's also important to note that we purposely drew this as a wedge. We weren't trying to guide every quarter for the next 12 quarters. It obviously, won't be a straight line. But we are also not dealing with a hockey stick, when we built the plan, we expected to see strong growth this year.

同樣重要的是要注意，我們故意將其繪製為楔子。我們並沒有試圖為接下來 12 個季度的每個季度提供指導。顯然，它不會是一條直線。但我們也不是在處理曲棍球棒，當我們制定計劃時，我們預計今年會出現強勁增長。

So how are we doing so far? We are off to a terrific time. Let me explain the $1.3 billion dot point you see on the chart here. Our quarter two 2024 sales were $3.6 billion. Our quarter four 2023 sales were $3.27 billion, the difference is $330 million. And when you annualize that, you get to $1.3 billion. And that trend continues into quarter three.

那麼到目前為止我們做得怎麼樣呢？我們即將迎來一段美好的時光。讓我解釋一下您在圖表上看到的 13 億美元點。我們 2024 年第二季的銷售額為 36 億美元。我們 2023 年第四季的銷售額為 32.7 億美元，差額為 3.3 億美元。如果按年計算，您將達到 13 億美元。這種趨勢持續到第三季。

The additional sequential growth increases our run rate in the third quarter by $1.7 billion. As you can see, we are running well ahead of our Springboard plan run rate. That being said, please remember, we're only two quarters into a 12-quarter plan. Springboard is a milestone-based plan evolving over the next three years. We have plenty of opportunity ahead of us, a lot of springs yet to activate. We'll update you as we hit significant milestones. Clearly, we're off to a very strong start, well above the run rates we need to deliver.

額外的環比增長使我們第三季的運行率增加了 17 億美元。正如您所看到的，我們的運行速度遠遠超出了 Springboard 計劃的運行速度。話雖這麼說，請記住，我們的 12 季計劃僅進行了兩個季度。 Springboard 是一項基於里程碑的計劃，將在未來三年內持續發展。我們面前有很多機會，還有很多泉水有待啟動。當我們達到重要里程碑時，我們會向您通報最新情況。顯然，我們有了一個非常強勁的開局，遠高於我們需要提供的運行率。

So as I wrap up this morning, I think you can see why we're energized about Springboard. And we're pleased with our early progress, including, of course, the encouraging response to our GenAI products. We expect to have a lot more news over the next few months as milestones start to hit and we're scheduling around those.

當我今天早上結束演講時，我想您已經明白為什麼我們對 Springboard 充滿活力了。我們對我們的早期進展感到滿意，當然包括對我們的 GenAI 產品的令人鼓舞的反應。隨著里程碑的到來，我們預計在接下來的幾個月裡會收到更多消息，並且我們正在圍繞這些里程碑進行安排。

We're planning another investor event in September as well as a full Investor Day in early 2025. Also, it is important to note that as we proceed forward with Springboard, we'll continue to seek the guidance of our Board of Directors. To that end, we will be refreshing our Board composition to more closely align the skill set profiles of the Board with our Springboard plan.

我們計劃在 9 月舉辦另一場投資者活動，並在 2025 年初舉辦完整的投資者日活動。為此，我們將更新董事會的組成，使董事會的技能組合與我們的跳板計畫更加緊密地結合。

Now, let me turn it over to Ed for some more detail and perspective on the quarter and on Springboard.

現在，讓我將其交給 Ed，以了解有關本季和 Springboard 的更多細節和觀點。

Thank you, Wendell. Good morning, everyone. We're off to a great start. We believe our second quarter results are a strong proof point of both the sales and the incremental profit and cash flow opportunity in our Springboard plan. So before I dive into the results, I'd like to share some of the major growth drivers we see across our market access platforms.

謝謝你，溫德爾。大家，早安。我們有了一個好的開始。我們相信，我們第二季的業績有力地證明了我們的跳板計劃中的銷售以及增量利潤和現金流機會。因此，在深入研究結果之前，我想分享一下我們在市場准入平台上看到的一些主要成長動力。

Wendell shared with you our internal non-risk-adjusted plan, which is $8 billion in incremental sales by the end of 2028 and $5 billion by the end of 2026. I'm going to share some of the cyclical and secular drivers of this growth, while focusing in on the three-year window.

Wendell 與您分享了我們內部的非風險調整計劃，即到2028 年底銷售額增量為80 億美元，到2026 年底銷售額增量為50 億美元。驅動因素，同時專注於三年窗口。

Let's start with Optical Communications. The GenAI opportunity, Wendell spoke about, adds a significant amount of growth. We expect our enterprise business to grow at a 25% compound annual growth rate from 2023 to 2027, driven by the adoption of our connectivity solutions for generative AI. And this is already underway. We delivered record sales in enterprise in the second quarter, which grew more than 40% year-over-year.

讓我們從光通信開始。 Wendell 談到 GenAI 的機會帶來了顯著的成長。我們預計，在採用我們的生成人工智慧連接解決方案的推動下，我們的企業業務從 2023 年到 2027 年將以 25% 的複合年增長率成長。這已經在進行中。第二季我們的企業銷售額創下歷史新高，年增超過 40%。

In our carrier business, customers are reaching the end of their inventory drawdowns and beginning to order closer to their current deployment levels. Additionally, government efforts to bring high-speed Internet to rural communities through the broadband equity access and deployment program will contribute to growth beginning in 2025 and add significant sales over the next several years.

在我們的營運商業務中，客戶的庫存消耗即將結束，並開始訂購更接近當前部署水準的訂單。此外，政府透過寬頻公平存取和部署計劃為農村社區提供高速網路的努力將有助於推動 2025 年開始的成長，並在未來幾年顯著增加銷售額。

In display, we're not counting on TV unit growth. Instead, we expect to capitalize on the trend of larger screens with about an inch of screen size growth per year to add low to mid-single-digit volume growth. Additionally, as we've previously explained, we're currently undertaking currency-based price adjustments to maintain appropriate returns in our display business.

在顯示器方面，我們並不期待電視銷量的成長。相反，我們預計將利用更大螢幕的趨勢，螢幕尺寸每年增長約一英寸，以增加低至中個位數的銷量成長。此外，正如我們之前所解釋的，我們目前正在進行基於貨幣的價格調整，以維持我們的顯示器業務的適當回報。

In automotive, we have a triple-digit automotive glass business today, and we expect sales in that business to almost triple by 2026. Recently announced US EPA regulations will require the adoption of GPFs in US, starting with model year 2027. This adoption offers hundreds of millions of dollars of growth for us in the US alone. Even in the face of BEV adoption, we expect sales to start in 2026. And finally, we expect to build an entirely new map, as we leverage the Inflation Reduction Act to support the build-out of a US solar supply chain.

在汽車領域，我們目前擁有三位數的汽車玻璃業務，我們預計到2026 年該業務的銷售額將幾乎增加兩倍。種採用提供了僅在美國就為我們帶來了數億美元的成長。即使面對 BEV 的採用，我們預計銷售也會在 2026 年開始。

These are just some of the growth drivers in our $5 billion opportunity. As Wendell shared, we probabilistically adjusted this opportunity to the $3 billion high confidence Springboard plan we've been sharing with you since the third quarter of 2023. We expect to have strong incremental profit and cash flow as we capture the growth, and we're starting from a strong operating base.

這些只是我們 50 億美元機會中的一些成長動力。正如溫德爾所說，我們從機率上將此機會調整為我們自2023 年第三季以來一直與您分享的30 億美元高信心跳板計劃。強勁的增量利潤和現金流，並且我們「從強大的營運基礎開始。

Our productivity ratios are at best demonstrated levels and we've raised price to more appropriately share inflation with our customers. Our improvement in gross margin is a great proof point. In the second quarter of 2024, gross margin was 37.9%, up 430 basis points from 33.6% in the fourth quarter of 2022 on the same level of sales.

我們的生產力處於最佳水平，並且我們提高了價格，以便更適當地與客戶分擔通膨。我們毛利率的提高就是一個很好的證明。 2024年第二季毛利率為37.9%，較2022年第四季同銷售水準的33.6%上升430個基點。

With that, let me share some highlights from our second quarter results. Sales grew 11% sequentially reaching $3.6 billion in the quarter, returning us to year-over-year growth. The outperformance versus our April guidance of $3.4 billion was primarily driven by the strong adoption of our new optical connectivity products for GenAI. EPS grew 24% sequentially, more than twice as fast as sales, coming in at $0.47, also above our April guidance range.

接下來，讓我分享我們第二季業績的一些亮點。本季銷售額較上季成長 11%，達到 36 億美元，恢復年成長。業績優於我們 4 月指導的 34 億美元，主要是由於 GenAI 新型光連接產品的廣泛採用。每股收益環比成長 24%，是銷售額的兩倍多，達到 0.47 美元，也高於我們 4 月的指導範圍。

Gross margin improved sequentially and year-over-year by 110 basis points and 170 basis points, respectively. Operating margin expanded 190 basis points versus the first quarter, and we generated strong free cash flow of $353 million.

毛利率較上月和年比分別提高 110 個基點和 170 個基點。營業利潤率比第一季擴大了 190 個基點，我們產生了 3.53 億美元的強勁自由現金流。

Next, let me turn to our segment results. In Optical Communications, sales for the second quarter were $1.1 billion, up 20% sequentially, reflecting a return to growth for the segment. Year-over-year, sales increased 4%. Enterprise network sales were up 42% driven by AI-related connectivity solutions.

接下來，讓我談談我們的細分結果。在光通訊領域，第二季銷售額為 11 億美元，季增 20%，反映出該領域恢復成長。銷售額較去年同期成長 4%。在 AI 相關連線解決方案的推動下，企業網路銷售額成長了 42%。

Carrier sales were actually down 10%, as customers continue to draw down their inventory. Encouragingly though, carrier network sales grew sequentially as customers began to order closer to their current deployment levels. We delivered strong incremental profit in Optical, with net income for the quarter at $143 million, up 43% sequentially on the 20% sales growth.

由於客戶繼續減少庫存，營運商銷售額實際上下降了 10%。但令人鼓舞的是，隨著客戶開始訂購更接近當前部署水準的產品，營運商網路銷售額連續成長。我們在光學業務中實現了強勁的利潤增量，本季淨利潤達到 1.43 億美元，比上一季的 20% 銷售額增長 43%。

Moving to Display Technologies. Second quarter sales were $1 billion, up 16% sequentially as panel makers ran at higher utilization rates in the second quarter to support mid-year promotions. Glass price was consistent with the first quarter. Net income was $258 million, up 28% sequentially. Year-over-year, sales were up 9% and net income was up 24%, driven by higher volume and price.

轉向顯示技術。第二季銷售額為 10 億美元，季增 16%，因為面板製造商在第二季提高了利用率以支持年中促銷活動。玻璃價格與第一季持平。淨利潤為 2.58 億美元，比上一季成長 28%。在銷量和價格上漲的推動下，銷售額較去年同期成長 9%，淨利潤成長 24%。

Now let me spend a minute on our approach to display price going forward. As we've said before, we plan to make currency-based price adjustments to maintain appropriate returns in our display business. We're in the midst of doing just that and we will update you on our progress at an appropriate time.

現在讓我花一點時間介紹我們未來顯示價格的方法。正如我們之前所說，我們計劃進行基於貨幣的價格調整，以維持顯示器業務的適當回報。我們正在這樣做，我們將在適當的時候向您通報我們的最新進展。

With respect to the yen, we have hedges in place for 2025 and beyond. They're not at the 2024 core rate of 107, but they're much better than the current spot rate. We expect the combination of our currency-based price adjustments and our hedges to deliver an appropriate level of profitability for the display business. For your modeling purposes, you can think about appropriate profitability as being the average of the last five years of net income margin from our segment reports.

對於日元，我們在 2025 年及以後採取了對沖措施。它們並未達到 2024 年核心匯率 107，但比目前的即期匯率好得多。我們預計基於貨幣的價格調整和對沖相結合將為顯示器業務帶來適當的獲利能力。出於建模目的，您可以將適當的獲利能力視為我們分部報告中過去五年淨利潤率的平均值。

Turning to Specialty Materials. Sales in the second quarter were $501 million, up 18% year-over-year, driven by continued strong demand for premium glasses for mobile devices and semiconductor-related products. Net income was $63 million, up 91% year-over-year, reflecting volume and manufacturing.

轉向特種材料。由於行動裝置和半導體相關產品對優質眼鏡的持續強勁需求，第二季銷售額為 5.01 億美元，較去年同期成長 18%。淨利潤為 6,300 萬美元，年增 91%，反映了銷量和製造情況。

In Environmental Technologies, second quarter sales were $431 million, down 6% year-over-year, reflecting the impact of the Class 8 truck down cycle in North America as anticipated. Net income was $97 million, down 9% year-over-year on decreased volume. We expect the heavy-duty market weakness to continue in the second half of this year and sales and environmental to be down sequentially in the third quarter.

在環境技術領域，第二季銷售額為 4.31 億美元，年減 6%，反映了北美 8 級卡車衰退週期的影響，正如預期的那樣。淨利潤為 9,700 萬美元，因銷量下降而較去年同期下降 9%。我們預計今年下半年重型市場將持續疲軟，第三季銷售和環境將季減。

In Life Sciences, sales in the second quarter were $249 million, up 8% year-over-year. Net income was $17 million, up 55% year-over-year.

在生命科學領域，第二季銷售額為 2.49 億美元，較去年同期成長 8%。淨利潤為 1700 萬美元，年增 55%。

Turning to Hemlock and Emerging Growth businesses. Sales in the quarter were $296 million, down 21% year-over-year, primarily reflecting lower pricing for solar-grade polysilicon.

轉向鐵杉和新興增長業務。該季度銷售額為 2.96 億美元，年減 21%，主要反映了太陽能級多晶矽的定價較低。

Now let me turn to our outlook. For the third quarter, we expect sales to grow to approximately $3.7 billion, driven primarily by our optical communications business including the continued adoption of our new optical connectivity solutions for GenAI products, which we expect will more than offset the expected slowdown in the US Class 8 truck market.

現在讓我談談我們的前景。對於第三季度，我們預計銷售額將成長至約37 億美元，這主要是由我們的光通訊業務推動的，包括繼續採用我們用於GenAI 產品的新光連接解決方案，我們預計這將足以抵銷美國級的預期放緩8卡車市場。

We expect EPS in the range of $0.50 to $0.54, with EPS growing 3 times the rate of sales. As we previously shared, our sales are running well ahead of Springboard plan. And our incrementals are strong, in fact, if you compare our projected Q3 sales and EPS guide to Q4 2023, which is our Springboard base, sales are up approximately 13% and EPS is up approximately 33%.

我們預計每股收益在 0.50 美元至 0.54 美元之間，每股收益成長是銷售額成長率的 3 倍。正如我們之前分享的，我們的銷售額遠遠超出了 Springboard 計劃。事實上，如果您將我們預期的第三季銷售額和每股盈餘指南與2023 年第四季（我們的Springboard 基礎）進行比較，我們的增量是強勁的，銷售額成長了約13%，每股收益成長了約33%。

Additionally, in Q3, we anticipate another quarter of strong free cash flow. As it relates to cash, our capital allocation priorities remain the same. We prioritize investing for organic growth opportunities, we believe this creates the most value for our shareholders over the long term.

此外，我們預計第三季的自由現金流將持續強勁。由於涉及現金，我們的資本配置優先事項保持不變。我們優先投資有機成長機會，我們相信這能為我們的股東長期創造最大價值。

As we've shared today, in the mid-term, we have the technical capabilities and capacity in place to add more than $3 billion in annualized sales with minimal cash investment. And you can see that reflected in our CapEx expectations for 2024 of $1.2 billion. We also seek to maintain a strong and efficient balance sheet. We're in great shape. We have one of the longest debt tenors in the S&P 500.

正如我們今天所分享的，從中期來看，我們擁有足夠的技術能力和能力，可以用最少的現金投資增加超過 30 億美元的年銷售額。您可以看到這反映在我們對 2024 年 12 億美元的資本支出預期中。我們也尋求維持強勁且高效的資產負債表。我們的狀態很好。我們是標準普爾 500 指數中債務期限最長的公司之一。

Our current average debt maturity is about 23 years with about only $1 billion in debt coming due over the next five years and we have no significant debt coming due in any given year.

我們目前的平均債務期限約為 23 年，未來五年內到期的債務約為 10 億美元，而且我們在任何一年都沒有重大債務到期。

And finally, we expect to continue our strong track record of returning excess cash to shareholders. Since 2013, we bought back half of our outstanding shares for almost 800 million shares. This generated about $15 billion of value for our shareholders. Because of our growing confidence in Springboard, we started to buy back shares in the second quarter, and we expect to continue share buybacks in the third quarter.

最後，我們希望繼續保持向股東返還多餘現金的良好記錄。自2013年以來，我們以近8億股回購了一半的流通股。這為我們的股東創造了約 150 億美元的價值。由於我們對Springboard的信心不斷增強，我們在第二季開始回購股票，預計第三季將繼續回購股票。

In summary, we're off to a great start on our Springboard plan. We're well on track to deliver on our $3 billion plus sales opportunity. Our second quarter results and our third quarter guidance our strong proof points of the incremental profit and cash flow we expect to deliver as we capture the sales growth.

總之，我們的跳板計畫有了一個好的開始。我們正在順利實現 30 億美元以上的銷售機會。我們的第二季業績和第三季指引有力地證明了我們在捕捉銷售成長時預計將實現的增量利潤和現金流。

I look forward to sharing more in the coming months as we make progress on our Springboard plan and continue create value for shareholders.

隨著我們在 Springboard 計劃上取得進展並繼續為股東創造價值，我期待在未來幾個月分享更多資訊。

With that, I'll turn it back to Ann.

這樣，我會把它轉回給安。

Thanks, Ed. Okay. We're ready for our first question.

謝謝，艾德。好的。我們準備好回答第一個問題了。

(Operator Instructions)

（操作員說明）

Asiya Merchant, Citi.

阿西亞商人，花旗銀行。

Great. Good morning. Thank you for the opportunity and congratulations on the strong results. On the optical side, if I may, especially on the GenAI, if you could maybe double-click a little bit on this -- the customers who are demanding the GenAI products that you've talked about and the visibility that you have over the next couple of quarters and even as you look into your Springboard plan, over the next 12 quarters, what kind of visibility do you have in sustaining this momentum that you have outlined? Thank you.

偉大的。早安.感謝您提供的機會並祝賀我們取得的優異成績。在光學方面，如果可以的話，特別是在 GenAI 上，如果您可以雙擊一下這個 - 需要您所談論的 GenAI 產品的客戶以及您對產品的可見性接下來的幾個季度，甚至當您研究您的Springboard 計畫時，在接下來的12 個季度中，您對維持您所概述的這種勢頭有何看法？謝謝。

Our visibility for strong growth is relatively high. And that is because what we do is we take the wiring diagram for some of these brand-new data centers that are getting put in place and we're building that customized system they'll use to connect.

我們強勁成長的可見度相對較高。這是因為我們所做的就是為一些即將到位的全新資料中心繪製接線圖，並建立他們將用於連接的客製化系統。

So we've been working on most of these products versus the core components for the last few years directly with those customers from what they'll need then we start to actually put it all together to be drop ship at exactly the right day for them. So in a way, we're already beginning to build some of their network needs well ahead of when they will install them.

因此，在過去的幾年裡，我們一直在直接與這些客戶合作，根據他們的需求開發大部分產品和核心組件，然後我們開始將它們真正組合在一起，以便在適合他們的日子直接發貨。因此，在某種程度上，我們已經開始在他們安裝之前滿足他們的一些網路需求。

So we have pretty good visibility on that. So far, what's driving the out performance is that the word of mouth on our product has been very positive. And other folks who we haven't been consistently working with over this time period have come to us to help them solve some of the challenges. And so as a result, we're picking up new customers for us into this new ecosystem that is building around putting together these back in network. So far, what we're seeing is most of our variance has been upside variance if that helps you at all.

所以我們對此有很好的了解。到目前為止，推動業績的因素是我們產品的口碑非常正面。在這段期間我們沒有一直合作的其他人也來找我們幫他們解決一些挑戰。因此，我們正在為我們吸引新客戶進入這個新的生態系統，該生態系統是圍繞將這些客戶重新整合到網路中而建構的。到目前為止，我們看到的大部分變異數都是上行變異數（如果這對您有幫助的話）。

That's great. And so it's the competitive moat that maybe Corning has an optical on the enterprise side, much greater in your, as you think about the opportunity ahead versus let's say, a couple of quarters ago or even with your prior solution? Thank you.

那太棒了。因此，康寧在企業方面的競爭優勢可能更大，當您考慮未來的機會時，與幾個季度前甚至您之前的解決方案相比，康寧的競爭優勢更大？謝謝。

So the competitive moats that we're trying to build here is driven around us doing a new-to-the-world fiber cable and connectivity system. And we're really the only person in the world who can put that all together. And strength of that moat will reflect directly on these new super high-density systems that we're putting in place, where you should think about it almost like Moore's Law, where we’re doubling the amount of light guides within the same volume area -- geometric volume area.

因此，我們試圖在這裡建立的競爭護城河是圍繞我們打造全新的光纖電纜和連接系統而驅動的。我們確實是世界上唯一能夠將這一切整合在一起的人。護城河的強度將直接反映在我們正在部署的這些新的超高密度系統上，您應該像摩爾定律一樣思考它，我們將相同體積內的光導數量加倍面積——幾何體積面積。

And while increasing the performance of the componentry. There's very few people who can do this and the way we're doing it to increase the optical performance is protected intellectual properties. So we believe our competitive advantages will increase in this segment.

同時提高組件的性能。很少有人能做到這一點，而我們提高光學性能的方法是受保護的智慧財產權。因此，我們相信我們在這一領域的競爭優勢將會增強。

Okay. Thank you.

好的。謝謝。

Samik Chatterjee, JPMorgan.

薩米克‧查特吉，摩根大通。

Hi. Thanks for taking my question. I guess, Wendell, in the slide deck, you mentioned the $8 billion Springboard opportunity by 2026. Roughly half of that is from optical. I'm just wondering if you can give us a bit more color on how to sort of split that opportunity between carrier and enterprise and then maybe if you can talk about the magnitude of what this Lumen agreement means in terms of revenue, how to think about the opportunity specifically to Lumen in terms of revenue over the next couple of years? Thank you.

你好。感謝您提出我的問題。我想，Wendell，您在幻燈片中提到了到 2026 年將有 80 億美元的 Springboard 機會。我只是想知道您是否可以給我們更多關於如何在運營商和企業之間分配機會的信息，然後也許您可以談談這個 Lumen 協議在收入方面意味著什麼，以及如何思考關於未來幾年Lumen 的收入機會？謝謝。

Well, to your first question, it is both in carrier and enterprise. But the majority is coming out of the enterprise piece as you see the fundamental change in compute-driven by GenAI and its related networking requirements. And we can come back to that if you want.

那麼，對於你的第一個問題，這既是營運商的問題，也是企業的問題。但當你看到 GenAI 及其相關網路需求驅動的運算發生根本性變化時，大部分都來自企業部分。如果你願意的話，我們可以回到這個話題。

Lumen, let's just start with sizing, when we say 10% of our global fiber capacity, I think the way you can think about it, it's -- you won't be far off as you size it. If you just take your sort of expected view of what our total revenue will be in Opto and you take 10% of it, and that's going to get you in the zone Samik, right?

Lumen，讓我們從調整規模開始，當我們說我們全球光纖容量的 10% 時，我認為你可以這樣想，當你調整它的規模時，你不會相差太遠。如果你只是按照你的預期看待我們在 Opto 的總收入，並從中抽取 10%，那麼你就會進入 Samik 區域，對嗎？

What makes the Lumen transaction so exciting for us is that we've always had a significant business connecting data centers to each other in the network at large. Because that's how data gets in and out of the cloud, right? The technical question has been with the advent of a new GPU-based back-end network for GenAI within data centers will there be a dramatic increase in the need for fiber to connect these GenAI enabled data centers to each other and the network.

Lumen 交易之所以讓我們如此興奮，是因為我們一直擁有將整個網路中的資料中心相互連接的重要業務。因為這就是資料進出雲端的方式，對嗎？技術問題是，隨著資料中心內 GenAI 的新的基於 GPU 的後端網路的出現，將這些支援 GenAI 的資料中心相互連接以及連接到網路的光纖需求是否會急劇增加。

The answer is going to depend on where is the power located and how that interacts with the architecture of the large language model and how and where both inference and training are accomplished. It's exciting about the Lumen deal is that it is certainly a strong proof point in favor of a bull case for that segment of the network. Does that make sense to you, Samik, if I've been responsive your question.

答案將取決於電源位於何處、其如何與大型語言模型的架構互動以及推理和訓練如何以及在何處完成。 Lumen 交易令人興奮的是，它無疑是支持該網絡部分看漲的有力證據。 Samik，如果我回答了你的問題，這對你有意義嗎？

Yeah. And I guess if I just sneak one more part, what do you think about the scope of similar agreements with other carriers as well in terms of just the -- solidifying the springboard opportunity with them? Thank you.

是的。我想，如果我再偷偷講一部分，您對與其他運營商達成的類似協議的範圍以及鞏固與他們的跳板機會有何看法？謝謝。

I don't want to speculate at this time, right? What is great about what Lumen has done is they're going to be the first customer to apply our new tech sort of double the amount of fiber they can place in their existing conduit. And that is super exciting. I would believe that is so exciting that it will generate lots of interest.

我現在不想猜測，對嗎？ Lumen 所做的事情的偉大之處在於，他們將成為第一個應用我們新技術的客戶，使他們可以在現有管道中放置的光纖數量增加一倍。這真是太令人興奮了。我相信這非常令人興奮，會引起很多人的興趣。

Thank you.

謝謝。

Steven Fox, Fox Advisors LLC.

史蒂文·福克斯，福克斯顧問有限責任公司。

Hi. Good morning. Maybe just one more question on optical for me also. Can you guys mentioned the 25% CAGR for the enterprise business over the next few years. There's a lot of concern, I think, that while there's optimism for this type of growth rate that it could be more diversity in nature, have some puts and takes as you go through the quarters. How do we get comfortable with the idea that you have enough customer diversity, project diversity that this is sort of a steady type of growth prospect for GenAI over the next few years? Thanks.

你好。早安.也許對我來說還有一個關於光學的問題。你們能否提到未來幾年企業業務的複合年增長率為 25%？我認為，人們對這種類型的成長率持樂觀態度，認為它本質上可能更加多樣化，但有很多擔憂，但在經歷這個季度時，還是有一些看跌期權和看跌期權。我們如何接受這個想法：您擁有足夠的客戶多樣性、專案多樣性，這是 GenAI 在未來幾年的穩定成長前景？謝謝。

It's a great question, Steve. And the way that we have addressed that since this is far from our first rodeo, right, is if you think about it, when we put together that $5 billion springboard plan, right, that is us believing what it is we truly think will happen. Then when we start to probabilistically adjust drop that 5 down to that 3 were after things exactly like you're talking about, where you can get whenever you're chasing a new tech, you can get these pieces where you'll have a bunch of project builds, and then it will slow while as that gets consumed. And then again -- and that's how we sought to address that as you start to think through your modeling. Does that make sense to you, Steve?

這是一個很好的問題，史蒂夫。我們解決這個問題的方式是，因為這距離我們的第一次牛仔競技表演還很遠，對吧，如果你想一想，當我們制定50 億美元的跳板計劃時，對吧，那就是我們相信我們真正認為會發生的事情。然後，當我們開始機率性地調整下降5 到3 時，就像你所說的那樣，每當你追求一項新技術時，你都可以得到這些東西，你可以得到這些東西，你會擁有一堆的項目構建，然後隨著它的消耗，它會變慢。話又說回來，這就是當你開始思考你的建模時我們試圖解決這個問題的方式。史蒂夫，這對你來說有意義嗎？

Yeah, it does. Maybe just to push that a little bit further, like do you see that happening over the next few quarters? Or are we so early stages that there's a consistent route to the growth around GenAI? Thank you.

是的，確實如此。也許只是為了進一步推動這一點，例如您認為未來幾季會發生這種情況嗎？或者我們還處於早期階段，圍繞 GenAI 的成長有一致的路線嗎？謝謝。

For the next few quarters, like you just saw us do is Edwin, I think he was together with a number of you guided for enterprise to grow at a 25% rate. And then the first quarter, we show up post providing that guidance, we grew at 40. Right now, in the near-term, our visibility is pretty high, and we feel really comfortable about the 25% guidance that Ed has given you.

在接下來的幾個季度裡，就像你們剛才看到的埃德溫所做的那樣，我認為他和你們中的一些人一起指導企業以 25% 的速度成長。然後在第一季度，我們發布了該指導意見，我們的成長率達到了 40。

Great. Thank you very much.

偉大的。非常感謝。

(Operator Instructions)

（操作員說明）

Martin Yang, OpCo.

馬丁楊，OpCo。

Just a quick confirmation on the 3Q guidance. Is it right to assume there's no price increase assumed or display in 3Q?

只是對第三季指引的快速確認。假設第三季沒有價格上漲或沒有顯示價格上漲是否正確？

Yeah, Martin, so thanks for that question. In general, as we always do with our guidance, we sort of have a number of potential outcomes that drive where we guide you to. And we provided a range on EPS and approximately $3.7 billion in our mind also has a range encapsulated around that well. So we're not specifically guiding anything in display price at this time, because we're in the midst of speaking with our customers about a currency based price adjustment, but that doesn't mean there won't be an impact in Q3.

是的，馬丁，謝謝你提出這個問題。總的來說，正如我們一貫遵循的指導方針一樣，我們有一些潛在的結果可以推動我們引導您到達目的地。我們提供了每股收益的範圍，我們認為大約 37 億美元也有一個圍繞該範圍的範圍。因此，我們目前沒有具體指導任何顯示價格，因為我們正在與客戶討論基於貨幣的價格調整，但這並不意味著第三季不會受到影響。

Got it. Thank you, Ed.

知道了。謝謝你，艾德。

Ruplu Bhattacharya.

魯普盧·巴塔查亞。

Hi. Thanks for taking my questions. I'm filling in for Wamsi today. Ed, you saw strong growth both sequentially and year-on-year in gross margins this quarter. How should we think about gross margin trend over the next few quarters? And what are the drivers for margin growth? And I have a follow-up.

你好。感謝您回答我的問題。今天我來代替Wamsi。艾德，您看到本季毛利率較上年同期均強勁成長。我們該如何看待未來幾季的毛利率趨勢？利潤成長的驅動因素是什麼？我有一個後續行動。

Yeah. Thanks. Great question. I think in general, the drivers for us on gross margin are we have the capacity and the technical capabilities in place to support a higher level of sales. So in general, we're not having to add fixed costs as our sales go up. So that is really what's going to drive both gross margin and operating margin for us as we go forward. And I do think there is room for our gross margin to continue go up as sales go up, I think our guide implies that for Q3.

是的。謝謝。很好的問題。我認為總的來說，毛利率的驅動因素是我們擁有支援更高水準銷售的能力和技術能力。因此，總的來說，隨著銷售額的成長，我們不必增加固定成本。因此，隨著我們的前進，這確實會推動我們的毛利率和營業利潤率。我確實認為，隨著銷售額的上升，我們的毛利率還有繼續上升的空間，我認為我們的指南暗示了第三季的情況。

Thanks for that. And if I can ask a follow-up on the display segment, what is your expectation for panel maker utilization rates in calendar 3Q and as you're implementing these currency based price adjustments, do you see any impact of that on your glass market share? And Ed, when should we expect the reset of the core yen rate? Thank you.

感謝那。如果我可以詢問顯示器領域的後續情況，您對第三季度面板製造商利用率的預期是什麼？ Ed，我們什麼時候該期待核心日圓匯率的重置？謝謝。

Yeah. So, I'll take those, sort of, one at a time. So, I think on utilization, when we spoke about Q2, we expected it to increase significantly from Q1. It did that. It actually was even better than our expectations. They ran a little hot. I think as we think about Q3, they're likely to run at that level or a little lower to sort of average out for the year. We think they're running more or less in line to meet expected retail demand.

是的。所以，我會一次拿一個。因此，我認為在利用率方面，當我們談到第二季時，我們預計它會比第一季大幅增加。它做到了。它實際上比我們的預期還要好。他們跑得有點熱。我認為，當我們考慮第三季度時，它們可能會保持在該水平或略低一些，以達到全年的平均水平。我們認為他們的運作或多或少是為了滿足預期的零售需求。

And with respect to the core rate, right now, we have hedges in place for 2025 and beyond. We're in the middle of a currency-based price adjustment with our customers. We're going to come back when all that's complete and we'll share our thoughts on how all that will work.

就核心利率而言，目前我們已經為 2025 年及以後製定了對沖措施。我們正在與客戶進行基於貨幣的價格調整。當一切完成後我們會回來，我們將分享我們對這一切將如何運作的想法。

But I think the most important thing is that when you think about our profitability going forward, our goal is to get the combination of the price adjustments and our hedges to get a net income margin or net income percent of sales that averages out at about the last five years. And Ruplu, I apologize if I miss any of your components of your question?

但我認為最重要的是，當你考慮我們未來的盈利能力時，我們的目標是將價格調整和對沖相結合，以獲得平均約為淨利潤率或銷售額的淨利潤百分比過去五年。 Ruplu，如果我錯過了你問題中的任何部分，我很抱歉？

I think just share and our intention would be to hold our share as a result of our overall approach to this industry and our currency-based upward price adjustment.

我認為只是分享，由於我們對這個行業的整體態度和基於貨幣的上調價格，我們的意圖是持有我們的份額。

Okay. Thank you for all the details. Appreciate it.

好的。感謝您提供所有詳細資訊。欣賞它。

Mehdi Hosseini, Susquehanna International Group.

邁赫迪‧侯賽尼 (Mehdi Hosseini)，薩斯奎哈納國際集團。

Yes, thanks for taking my question. This is for the team. And I want to go back to optical and trying to better understand the profitability of this business. I understand the secular growth and AI and everything that it brings. But when I think about profitability, net income margin is more than -- and less than half of what it is for display. So, how should I think about the revenue growth that will be sufficient to meet dollars of net income comparable to display, assuming that the display is just going go sideways from here? Hopefully, that's clear.

是的，感謝您提出我的問題。這是為了團隊。我想回到光學領域，並試著更了解這項業務的獲利能力。我了解長期成長和人工智慧及其帶來的一切。但當我考慮獲利能力時，淨利潤率超過並低於展示值的一半。那麼，假設顯示器從這裡開始橫向發展，我應該如何考慮足以滿足與顯示器相當的淨利潤的收入成長？希望這是清楚的。

Yeah. Thanks Mehdi. So, I think stepping back, if you think about our sales growing 11% and EPS growing 21% in the second quarter and then our guide implying a sales growth rate in the low single-digits and EPS growing 3 times faster than that, I think we can continue to have EPS growth outpacing sales regardless of where that growth comes from, primarily because we have the cost, the technical capabilities, the capacity in place to support the growth. I also think that the margins are quite attractive in the Optical business and especially in the data center space and AI data center space, where we expect to see growth.

是的。謝謝邁赫迪。所以，我想退一步來說，如果你想到第二季度我們的銷售額成長了11%，每股收益成長了21%，然後我們的指南暗示銷售成長率為低個位數，而每股收益成長速度比這快3 倍，我我們認為，無論成長來自何處，我們都可以繼續讓每股盈餘成長超過銷售額，主要是因為我們擁有支援成長的成本、技術能力和能力。我還認為光學業務的利潤率相當有吸引力，尤其是在資料中心領域和人工智慧資料中心領域，我們預計在這些領域會出現成長。

Let me be kind of more concise and clear. Would you be able to significantly outperform optical margin net income in the past, it has averaged by 13%. So looking forward, could it significantly be above 13%.

讓我說得更簡潔、更清晰。能不能大幅跑贏過去的光學利潤率淨利潤，平均為13%。所以展望未來，是否會大幅高於 13%。

I think it can be above 13%.

我認為可以在13%以上。

Okay. Thank you.

好的。謝謝。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

Hey, guys. This is James Cannon on for Josh. Congrats on the strong quarter of enterprise sales. I was just wondering if you could frame you called out a 10% decline in on the carrier side of that business? If you could just frame how that compares to what you did last quarter and maybe kind of what you're seeing in terms of the trajectory for the third quarter?

大家好。我是詹姆斯·坎農 (James Cannon) 替約什 (Josh) 發言。恭喜企業銷售強勁的季度表現。我只是想知道您是否可以陷害您稱該業務的運營商方面下降了 10%？您是否可以將其與上季的情況進行比較，以及您在第三季的軌跡方面看到的情況？

Yeah. So our carrier business is increasing sequentially. I think that's the good news. So although we're still down year-over-year because last year, you still had carriers sort of building inventory and now they're still in the process of drawing down their inventory, that's really causing that year-over-year decline. But the good news is order rates are going up, sales were up sequentially, and I think we would expect that trend to continue.

是的。所以我們的承運業務是依序增加的。我認為這是個好消息。因此，儘管我們仍然同比下降，因為去年，承運商仍然在建立庫存，現在他們仍在減少庫存，但這確實導致了同比下降。但好消息是訂單率正在上升，銷售額也連續上升，我認為我們預計這種趨勢將持續下去。

What we're seeing is that our carrier order rates are now starting to approach what we see as their deployment rates. And so that's also encouraging. So we have sort of that upward spring still in front of us when you begin to think of your year-over-year growth rates, James.

我們看到的是，我們的營運商訂單率現在開始接近我們所看到的部署率。這也是令人鼓舞的。因此，詹姆斯，當你開始考慮同比增長率時，我們仍然面臨著向上的春天。

Okay. Got it. And then just as a follow-up, kind of another way to ask the last question, I think. But as enterprise becomes a bigger piece of the optical portfolio. Can you just frame how the -- how those two pieces of the business compare margin-wise?

好的。知道了。我認為，作為後續行動，這是問最後一個問題的另一種方式。但隨著企業成為光學產品組合中更大的一部分。您能否簡單介紹一下這兩項業務的利潤率如何比較？

Enterprise.

企業。

Versus carrier.

與營運商相對。

Enterprise tends to be higher margin than carrier, primarily because it uses more of those customized connectivity systems. And so that is, as you move up the stack, in the degree of sophistication that we offer to our customers as that helps them reduce their installation cost, we end up sharing a portion of that value we create with those total passive optical systems that we do those. We'll have a higher degree of adoption in enterprise as a share of revenue than they do in carrier as a share of the total revenue.

企業的利潤往往高於營運商，主要是因為它使用更多的客製化連接系統。也就是說，當你在堆疊中向上移動時，我們為客戶提供的複雜程度有助於他們降低安裝成本，我們最終會與那些總無源光學系統分享我們創造的價值的一部分我們做這些。我們在企業中的採用率在收入中所佔的比例將高於在營運商中在總收入中所佔的比例。

Thank you.

謝謝。

Meta Marshall, Morgan Stanley.

梅塔‧馬歇爾，摩根士丹利。

Great. Thanks. I appreciate commentary on carrier that you guys are getting towards a better inventory position or that orders are getting more aligned with deployments. But just any latest update in terms of when you expect carriers to kind be through their inventory or orders to be aligning with deployments?

偉大的。謝謝。我很欣賞對承運商的評論，他們說你們正在獲得更好的庫存狀況，或者訂單與部署更加一致。但是，您希望運營商何時透過其庫存或訂單與部署保持一致，是否有任何最新更新？

And then maybe a second question, just in terms of the price increases on the display side or those negotiations? Is that something you expect to kind of have completed by Q3? And just as we think about that going forward, as you're going through those negotiations, is there any hope of kind of moving that to more USD-based pricing? Or just, do you expect that to be more dynamic with currency going forward? Thanks.

然後也許是第二個問題，就顯示方面的價格上漲或那些談判而言？您希望在第三季之前完成這件事嗎？正如我們思考未來的情況一樣，當你們正在進行這些談判時，是否有希望將其轉向更多基於美元的定價？或者只是，您期望隨著貨幣的發展，這種情況會更加活躍？謝謝。

So as we complete those currency-based pricing negotiations, we will update you. One of the reasons you see us scheduling an investor session in September, would be to update you on our progress on those dialogues with our customers in this point. So I think you should be expecting us to provide you an update at that date.

因此，當我們完成這些基於貨幣的定價談判時，我們將向您通報最新情況。您看到我們在 9 月安排投資者會議的原因之一是向您通報我們在這一點上與客戶對話的最新進展。所以我認為您應該期待我們在那一天向您提供更新。

As for moving to US dollar base, we're engaged with our customers as part of this whole dialogue. That exact question as we seek to find the right way, to share appropriately the relative value of the currency moves relative. Of course, the debate is our customers would lag an exchange rate closer to our current spot rate, and we would like one closer to the past 30-year average.

至於轉向以美元為基礎，作為整個對話的一部分，我們正在與客戶接觸。當我們尋求正確的方法來適當地分享貨幣的相對價值時，這個問題就相對移動了。當然，爭論的焦點是我們的客戶會選擇更接近我們目前即期匯率的匯率，而我們希望匯率更接近過去 30 年的平均水準。

And this is what God created negotiations for and we're in the midst of working our way through all that. And we look forward to having a more detailed discussion with you when we get together in September.

這就是上帝創造談判的目的，我們正在努力解決這一切。我們期待在 9 月聚會時與您進行更詳細的討論。

Yeah. Meta, on carrier, I think it's customer-by-customer the inventory situations are different. We're not quite there yet on people being completely buying at their deployment rates. I think we'll make progress on that as we go into the third quarter. We'll keep you updated, but I don't know that will necessarily be through all of it.

是的。 Meta，在承運商方面，我認為每個客戶的庫存狀況都是不同的。我們還沒有完全達到人們完全按照他們的部署率購買的目標。我認為進入第三季我們將在這方面取得進展。我們會及時向您通報最新情況，但我不知道這是否一定會完成這一切。

In total, I think, as you think about both questions together, carriers since it's so as Ed points out, it depends on particular carrier strategies. We should wait for them to talk more fully about it. But we'll update on where we are versus deployment rate. And we do expect that to close to continue to close relatively quickly.

總的來說，我認為，當你一起考慮這兩個問題時，運營商因為正如埃德指出的那樣，這取決於特定的運營商策略。我們應該等待他們更充分地談論它。但我們將更新我們的部署率情況。我們確實預計該交易將繼續相對較快地結束。

And for display, what our aim is, is that is to make this just be really simple for investors, and we're just going to end up delivering the profitability that you're used to out of display. Sort of no matter where the currency is coming out because we're going to price appropriately to reward our shareholders for the investment and risk that they have put in place to develop this terrific business.

對於展示來說，我們的目標是讓這對投資者來說變得非常簡單，而我們最終將提供您習慣於展示之外的盈利能力。無論貨幣出現在哪裡，因為我們都會適當定價，以獎勵我們的股東為發展這項出色的業務而進行的投資和風險。

Okay. Thank you.

好的。謝謝。

Tim Long, Barclays.

提姆朗，巴克萊銀行。

Thank you. I was hoping I could get a two-parter on optical. First part, for this current GenAI business you're talking about. Just curious, I think a lot of the hyperscalers have some different types of architectures they're using AOC, EOC, so some electrical, some optical. What you're selling now in this portfolio, is that across any single hyperscaler deployment? Or would it fit better into certain architectures?

謝謝。我希望我能在光學上得到一個兩人合作的機會。第一部分，針對您目前談論的 GenAI 業務。只是好奇，我認為很多超大規模企業都有一些不同類型的架構，他們使用 AOC、EOC，所以有些是電氣的，有些是光學的。您現在在此產品組合中銷售的產品是跨任何單一超大規模部署的嗎？或者它更適合某些架構？

And then number two, if you could just touch on the other more traditional enterprise like entrancing type market? When do you expect that to develop? And what type of uptick in optical component or fiber content would you expect to see when we get that more traditional enterprise deployments? Thank you.

第二，您是否可以觸及其他較傳統的企業，例如入門市場？您預計什麼時候會發展？當我們進行較傳統的企業部署時，您期望看到光學組件或光纖含量的哪種類型的成長？謝謝。

To take your questions in order. To the first part, the revenue that you see us reporting today is basically the fiber optic connections between the switches. Okay. Doesn't work exactly like this, but the way people talk about sort of top of the rack switches that then connect to other switch layers, which enable us to connect every GPU to every other GPU.

按順序回答您的問題。對於第一部分，您今天看到的收入基本上是交換器之間的光纖連接。好的。工作原理並不完全像這樣，而是人們談論的一種架頂交換器的方式，然後連接到其他交換器層，這使我們能夠將每個 GPU 連接到每個其他 GPU。

There is work as you are reflecting on what will happen then within the server racks whether those will end up becoming optical connections as well. Historically, they have been copper. And then once the bit rate distance rises above sort of 100 gigabit per meter second, you end up going to optical. So as distance climbs, optical tends to become the technology that is dominant use of the tech. That same dynamic because of density and complexity is now starting to work its way.

當您思考伺服器機架內將發生什麼時，這些工作是否最終也會成為光纖連接，這是一項工作。從歷史上看，它們是銅的。然後，一旦比特率距離上升到每秒 100 吉比特以上，您最終就會轉向光纖。因此，隨著距離的增加，光學技術往往成為主導技術。由於密度和複雜性，同樣的動態現在開始發揮作用。

We're beginning that long-term material science is slower work, right, on what happens within the server rack. And that tends to get at the architecture as you're speaking about more fully. To the part two of your question is what happens with influence, there's a bunch of different opinions on how inference architectures will work. It tends to be largely driven by what that particular players market position is and different arguments around data gravity, right.

我們開始認為，長期的材料科學是一項較慢的工作，對吧，研究伺服器機架內發生的事情。當你更全面地談論時，這往往會涉及到架構。對於你的問題的第二部分是影響力會發生什麼，關於推理架構如何運作有很多不同的觀點。它往往在很大程度上是由特定參與者的市場地位以及圍繞數據引力的不同論點所驅動的，對吧。

So I would say it's too early for us to have a point of view on which architectures will become the predominant ones, for inference, Tim. As our understanding evolves and we developed a more converged view of how that evolves, we'll be happy to share with you. Does that address your questions, Tim?

因此，我想說，對於我們來說，就哪些架構將成為主導架構做出判斷還為時過早，僅供參考，蒂姆。隨著我們的理解不斷發展，並且我們對其發展方式形成了更一致的看法，我們將很樂意與您分享。這能解決你的問題嗎，提姆？

Yes. That's great. Thank you.

是的。那太棒了。謝謝。

Great. I think we can take one more question.

偉大的。我想我們可以再問一個問題。

George Notter, Jefferies LLC.

喬治諾特，傑富瑞有限責任公司。

Hi, guys. Thanks a lot for squeezing me in. I guess I wanted to just go back to the question of your competitive differentiation in the optical business. I guess for starters, I'm just curious about how much of this GenAI solution is customized from Corning. Curious about how many customers you're doing customization work for?

嗨，大家好。非常感謝您邀請我發言。我想對於初學者來說，我只是好奇這個 GenAI 解決方案有多少是康寧定制的。想知道您正在為多少客戶進行客製化工作嗎？

And then also, I know there are other suppliers making smaller diameter fiber cables. I know there's a bunch of work folks are doing on connectors, higher-density racks. I guess I'm just hoping to drill down into what's precisely unique to Corning versus some of those other guys. Thanks.

而且，我知道有其他供應商生產更小直徑的光纜。我知道人們在連接器、高密度機架方面正在進行大量工作。我想我只是希望深入了解康寧與其他一些公司相比的獨特之處。謝謝。

Great. So as you know, George, what we do is we participate in all the levels of that value stream. And we will take our new to the world fiber and provide it to other cables. We'll also design proprietary cables that incorporate our fiber to compete at that level and then we, of course, do our connectors to US connect, we will provide those to other players and take our competitive advantages at the component level.

偉大的。如你所知，喬治，我們所做的是參與該價值流的所有層面。我們將把我們的新光纖推向世界，並將其提供給其他電纜。我們還將設計包含我們光纖的專有電纜，以便在該層級上競爭，然後我們當然將連接器連接到美國，我們將向其他參與者提供這些電纜，並在組件層級上發揮我們的競爭優勢。

But at the same time, we'll then put them together in unique ways at the total system level. So we deliberately provide to other players because that is best for our overall customers are different componentry for them to put together in their own novel waves.

但同時，我們將在整個系統層級以獨特的方式將它們組合在一起。因此，我們故意向其他玩家提供不同的組件，因為這對我們的整體客戶來說是最好的，讓他們可以將不同的組件組合在一起形成自己的新穎浪潮。

Now what makes our fiber so unique is when most people just shrink the diameter of the fiber, actually the optical performance decreases. The spot size gets smaller, the bend resistance drops. The attenuation can get a little bit less.

現在，我們的光纖如此獨特的原因是，當大多數人只是縮小光纖的直徑時，實際上光學性能會下降。光斑尺寸變小，耐彎曲性下降。衰減可以稍微小一點。

What makes our inventions so cool is that we ended up reducing the diameter of the fiber, while improving versus standard fiber, all of the optical performance, because we redesigned the actual profile and the way we make the fiber in a proprietary way, and we managed to deliver all of this without any significant increase in our cost when competitors try to do something at the fiber level, they end up having to increase their cost to meet that that performance.

我們的發明之所以如此酷，是因為我們最終減少了光纖的直徑，同時相對於標準光纖提高了所有光學性能，因為我們重新設計了實際輪廓以及以專有方式製造光纖的方式，並且我們當當競爭對手試圖在光纖層級做某事時，他們最終不得不增加成本來滿足該性能。

So that is the core of our advantage of fiber. And then we just start multiplying it with our expertise at each level. As far as what share of our revenue going forward will be more customized versus at the componentry level. Our desire would be to have of the majority of our revenues be driven by delivery of those customized solutions and the value that we add there on reduced installation time.

所以這就是我們光纖優勢的核心。然後我們開始將其與我們在各個級別的專業知識相乘。與零件層面相比，我們未來的收入份額將更加客製化。我們的願望是透過交付這些客製化解決方案以及透過減少安裝時間增加的價值來推動我們的大部分收入。

At the same time, we're in the business of delighting our customers. And if what they would like us to do is to provide some of the component building blocks at the appropriate price, of course, to our competitors, we will be happy to do that.

同時，我們致力於讓客戶滿意。當然，如果他們希望我們以適當的價格向我們的競爭對手提供一些組件構建塊，我們將很樂意這樣做。

Great. Thank you very much.

偉大的。非常感謝。

Thank you, and thanks, everybody, for joining us today. Before we close, I wanted to let you know that we're going to attend two conferences in the third quarter; JPMorgan Hardware and Semi Management Access Forum on August 14, and Citi's 2024, Global TMT Conference on September 5. We also plan to host a visit to our facilities in September. Finally, we'll be scheduling management visits to investor offices in September.

謝謝你們，也謝謝大家今天加入我們。在我們結束之前，我想讓你們知道我們將在第三季參加兩次會議； 8 月 14 日舉行摩根大通硬體和半管理准入論壇，9 月 5 日舉行花旗 2024 年全球 TMT 會議。最後，我們將安排管理層在 9 月對投資者辦公室進行訪問。

There will be replay of today's call on our website starting later this morning. So once again, thanks for joining us. Operator, that concludes our call. Please disconnect all lines.

從今天上午晚些時候開始，我們的網站將重播今天的電話會議。再次感謝您加入我們。接線員，我們的通話結束了。請斷開所有線路。

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。祝大家有美好的一天。